18.

Segment Data

We design, manufacture and market orthopaedic reconstructive products; sports medicine, biologics, extremities and trauma products; office based technologies; spine, craniomaxillofacial and thoracic products (“CMF”); dental implants; and related surgical products. We allocate resources to achieve our operating profit goals through seven operating segments. Our operating segments are comprised of both geographic and product category business units. The geographic operating segments are the Americas, which is comprised principally of the U.S. and includes other North, Central and South American markets; EMEA, which is comprised principally of Europe and includes the Middle East and African markets; and Asia Pacific, which is comprised primarily of Japan and includes other Asian and Pacific markets. The product category operating segments are Americas Spine, Office Based Technologies, CMF and Dental. The geographic operating segments include results from all of our product categories except those in the product category operating segments. The Office Based Technologies, CMF and Dental product category operating segments reflect those respective product category results from all regions, whereas the Americas Spine operating segment only includes product results from the Americas.

As it relates to the geographic operating segments, management evaluates performance based upon segment operating profit exclusive of operating expenses pertaining to inventory step-up and certain other inventory and manufacturing related charges, “Certain claims,” goodwill impairment, intangible asset amortization, “Special items,” and global operations and corporate functions. Global operations and corporate functions include research, development engineering, medical education, brand management, corporate legal, finance and human resource functions, manufacturing operations and logistics and share-based payment expense. As it relates to each product category operating segment, research, development engineering, medical education, brand management and other various costs that are specific to the product category operating segment’s operations are reflected in its operating profit results. Due to these additional costs included in the product category operating segments, profitability metrics between the geographic operating segments and product category operating segments are not comparable. Intercompany transactions have been eliminated from segment operating profit.

Management does not review asset information by operating segment. Instead, management reviews cash flow and other financial ratios by operating segment.

These seven operating segments are the basis for our reportable segment information provided below. The four product category operating segments are individually insignificant to our consolidated results and therefore do not constitute a reporting segment either individually or combined. For presentation purposes, these product category operating segments have been aggregated. Prior period reportable segment financial information has been restated to conform to the current period.

Net sales and other information by segment is as follows (in millions):


	Americas		EMEA		Asia Pacific		Immaterial Product Category Operating Segments		Global Operations and Corporate Functions			Total
As of and for the Year Ended December 31, 2016
Net sales	$	3,947.6	$	1,566.1	$	1,092.2	$	1,078.0	$	–		$	7,683.9
Depreciation and amortization		135.6		70.7		51.6		34.7		746.7			1,039.3
Segment operating profit		2,134.4		503.3		440.8		249.1		(854.9	)		2,472.7
Inventory step-up and certain other inventory and manufacturing related charges													(469.1	)
Intangible asset amortization													(565.9	)
Certain claims													–
Special items
Biomet merger related													(487.3	)
Other special items													(124.5	)

Operating profit													825.9

As of and for the Year Ended December 31, 2015
Net sales	$	3,109.4	$	1,302.9	$	881.6	$	703.9	$	–		$	5,997.8
Depreciation and amortization		110.0		62.4		37.9		21.0		481.1			712.4
Segment operating profit		1,633.5		449.0		422.2		162.2		(673.9	)		1,993.0
Inventory step-up and certain other inventory and manufacturing related charges													(348.8	)
Intangible asset amortization													(337.4	)
Certain claims													(7.7	)
Special items
Biomet merger related													(619.1	)
Other special items													(212.7	)

Operating profit													467.3

As of and for the Year Ended December 31, 2014
Net sales	$	2,320.2	$	1,189.1	$	789.2	$	374.8	$	–		$	4,673.3
Depreciation and amortization		70.5		48.8		30.2		7.5		218.8			375.8
Segment operating profit		1,215.4		407.8		371.0		76.4		(541.9	)		1,528.7
Inventory step-up and certain other inventory and manufacturing related charges													(36.3	)
Intangible asset amortization													(92.5	)
Certain claims													(21.5	)
Special items
Biomet merger related													(61.9	)
Other special items													(279.2	)

Operating profit													1,037.3

We conduct business in the following countries that hold 10 percent or more of our total consolidated Property, plant and equipment, net (in millions):


	As of December 31,
	2016		2015
United States	$	1,181.3	$	1,188.6
Other countries		856.6		874.0

Property, plant and equipment, net	$	2,037.9	$	2,062.6

U.S. sales were $4,541.3 million, $3,447.2 million, and $2,397.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. Sales within any other individual country were less than 10 percent of our consolidated sales in each of those years. Sales are attributable to a country based upon the customer’s country of domicile.

Net sales by product category are as follows (in millions):


	For the Years Ended December 31,
	2016		2015		2014
Knees	$	2,751.9	$	2,276.8	$	1,895.2
Hips		1,867.9		1,533.0		1,326.4
S.E.T		1,645.4		1,214.6		863.2
Dental		427.9		335.7		242.8
Spine & CMF		662.0		404.4		207.2
Other		328.8		233.3		138.5

Total	$	7,683.9	$	5,997.8	$	4,673.3