Segment Data

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Data

19.Segment Data

We design, manufacture and market orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, craniomaxillofacial and thoracic products (“CMFT”); office based technologies; dental implants; and related surgical products.  Due to the 2019 Restructuring Plan that was initiated in late 2019, our operating segments have changed beginning in the first quarter of 2020.  Our chief operating decision maker (“CODM”) now allocates resources to achieve our operating profit goals through three operating segments.  These operating segments, which also constitute our reportable segments, are Americas and Global Businesses; EMEA; and Asia Pacific.  Previously, we had seven operating segments, which resulted in three reportable segments and four individually insignificant operating segments that were aggregated together and not considered a reportable segment.  

Our CODM evaluates performance based upon segment operating profit exclusive of operating expenses pertaining to certain inventory and manufacturing-related charges, intangible asset amortization, goodwill and intangible asset impairment, restructuring and other cost reduction initiatives, quality remediation, acquisition, integration and related, litigation, litigation settlement gain, certain European Union Medical Device Regulation expenses, other charges and corporate functions.  Corporate functions include corporate legal, finance, information technology, human resources and other corporate departments as well as stock-based compensation.  Intercompany transactions have been eliminated from segment operating profit.

Our Americas and Global Businesses operating segment is comprised principally of the U.S. and includes other North, Central and South American markets for all of our product categories as well as the global results for our Dental products division.  This segment also includes our global manufacturing operations for all product categories and research, development engineering, medical education, and brand management for our global product category headquarter locations.  Our EMEA operating segment is comprised principally of Europe and includes the Middle East and African markets for all product categories except Dental.  Our Asia Pacific operating segment is comprised principally of Japan, China and Australia and includes other Asian and Pacific markets for all product categories except Dental.  The EMEA and Asia Pacific operating segments include the commercial operations as well as regional headquarter expenses to operate in those markets.

Since the Americas and Global Businesses includes additional costs related to global manufacturing operations and other centralized global product category headquarter expenses, profitability metrics in this operating segment are not comparable to the EMEA and Asia Pacific operating segments.  

Our CODM does not review asset information by operating segment.  Instead, our CODM reviews cash flow and other financial ratios by operating segment.

Prior period reportable segment financial information has been reclassified to conform to our new reportable segments.

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

	Net Sales						Operating (Loss) Profit									Depreciation and Amortization
	Year Ended December 31,						Year Ended December 31,									Year Ended December 31,
	2020		2019		2018		2020			2019			2018			2020		2019		2018
Americas and Global Businesses	$	4,479.0	$	5,035.3	$	5,000.4	$	1,316.9		$	1,689.7		$	1,706.9		$	168.1	$	162.0	$	175.0
EMEA		1,288.6		1,623.1		1,669.5		308.9			484.0			480.7			77.5		77.0		75.5
Asia Pacific		1,256.9		1,323.8		1,263.0		420.5			472.7			431.9			71.3		65.3		66.8
Total	$	7,024.5	$	7,982.2	$	7,932.9
Corporate Functions								(437.2	)		(457.9	)		(409.2	)		118.2		117.5		127.3
Inventory and manufacturing-related charges								(54.2	)		(53.9	)		(32.5	)		-		-		-
Intangible asset amortization								(597.6	)		(584.3	)		(595.9	)		597.6		584.3		595.9
Goodwill and intangible asset impairment								(645.0	)		(70.1	)		(979.7	)		-		-		-
Restructuring and other cost reduction initiatives								(116.9	)		(50.0	)		(34.2	)		-		-		-
Quality remediation								(49.8	)		(87.6	)		(165.4	)		-		-		-
Acquisition, integration and related								(23.8	)		(12.2	)		(99.5	)		-		-		-
Litigation								(159.8	)		(65.0	)		(186.0	)		-		-		-
Litigation settlement gain								-			23.5			-			-		-		-
European Union Medical Device Regulation								(25.3	)		(30.9	)		(3.7	)		-		-		-
Other charges								(24.5	)		(120.5	)		(79.6	)		-		-		-
Total							$	(87.8	)	$	1,137.5		$	33.8		$	1,032.7	$	1,006.1	$	1,040.5

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,
	2020		2019
United States	$	1,252.6	$	1,295.0
Other countries		795.1		782.4
Property, plant and equipment, net	$	2,047.7	$	2,077.4

U.S. sales were $4,123.5 million, $4,592.1 million, and $4,560.0 million for the years ended December 31, 2020, 2019 and 2018, 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.