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Segment and corporate information
 6 Months Ended
Jun. 30, 2018
Segment and corporate information  
Segment and corporate information

13. Segment and corporate information

The Company’s operating segments are the North America Segment, the EMEA Segment, the Asia-Pacific Segment and the Latin America Segment. The operating segments are determined based upon how the Company manages its businesses with geographical responsibilities. All segments are primarily engaged in providing health care services and the distribution of products and equipment for the treatment of ESRD and other extracorporeal therapies.

Management evaluates each segment using measures that reflect all of the segment’s controllable revenues and expenses. With respect to the performance of business operations, management believes that the most appropriate measures are revenue, operating income and operating income margin. The Company does not include income taxes as it believes this is outside the segments’ control. Financing is a corporate function, which the Company’s segments do not control. Therefore, the Company does not include interest expense relating to financing as a segment measurement. Similarly, the Company does not allocate certain costs, which relate primarily to certain headquarters’ overhead charges, including accounting and finance, because the Company believes that these costs are also not within the control of the individual segments. Production of products, production asset management, quality management and procurement related to production are centrally managed at Corporate. The Company’s global research and development is also centrally managed at Corporate. These corporate activities do not fulfill the definition of a segment according to IFRS 8. Products are transferred to the segments at cost; therefore no internal profit is generated. The associated internal revenue for the product transfers and their elimination are recorded as corporate activities. Capital expenditures for production are based on the expected demand of the segments and consolidated profitability considerations. In addition, certain revenues, investments and intangible assets, as well as any related expenses, are not allocated to a segment but are accounted for as Corporate.

Information pertaining to the Company’s segment and Corporate activities for the three and six months ended June 30, 2018 and 2017 is set forth below:

Segment and corporate information
in € THOUS
North America SegmentEMEA SegmentAsia-Pacific SegmentLatin America SegmentSegment TotalCorporate Total
Three months ended June 30, 2018
Revenue from contracts with external customers2.919.567643.992405.391162.9144.131.8644.1084.135.972
Other revenues51.7338.32016.82885277.733-77.733
Revenue external customers2.971.300652.312422.219163.7664.209.5974.1084.213.705
Inter-segment revenue830-13112973(973)-
Revenue2.972.130652.312422.350163.7784.210.5703.1354.213.705
Operating income1.285.973104.92377.85111.1691.479.916(78.817)1.401.099
Interest(84.297)
Income before income taxes1.316.802
Depreciation and amortization(94.992)(28.417)(10.987)(5.849)(140.245)(39.997)(180.242)
Income (loss) from equity method investees18.860(3.381)75928516.523-16.523
Additions of property, plant and equipment and intangible assets172.83835.57113.3827.632229.42353.387282.810
Three months ended June 30, 2017
Revenue external customers3.225.014641.726417.381182.6874.466.8084.2134.471.021
Inter-segment revenue4981395597(597)-
Revenue 3.225.512641.727417.384182.7824.467.4053.6164.471.021
Operating income469.536112.66478.23212.460672.892(89.591)583.301
Interest(94.966)
Income before income taxes488.335
Depreciation and amortization(100.711)(30.296)(11.878)(4.536)(147.421)(38.652)(186.072)
Income (loss) from equity method investees22.472(104)36620522.939-22.939
Additions of property, plant and equipment and intangible assets136.03723.43212.14310.514182.12643.622225.748
Six months ended June 30, 2018
Revenue from contracts with external customers5.639.1941.275.216786.192332.2548.032.8567.7518.040.607
Other revenues106.56812.90427.4891.766148.727-148.727
Revenue external customers5.745.7621.288.120813.681334.0208.181.5837.7518.189.334
Inter-segment revenue1.230303318511.902(1.902)-
Revenue5.746.9921.288.423813.999334.0718.183.4855.8498.189.334
Operating income1.648.181213.857152.07125.2832.039.392(141.417)1.897.975
Interest(164.273)
Income before income taxes1.733.702
Depreciation and amortization(185.647)(57.278)(22.146)(10.429)(275.500)(79.736)(355.236)
Income (loss) from equity method investees37.661(4.715)1.09438734.427-34.427
Total assets16.542.7593.677.4432.189.363684.92823.094.4931.950.43525.044.928
thereof investments on equity method investees313.190178.56897.71824.194613.670-613.670
Additions of property, plant and equipment and intangible assets314.65965.97623.41611.428415.47998.501513.980
Six months ended June 30, 2017
Revenue external customers6.599.8561.255.413794.926360.0969.010.2918.8509.019.141
Inter-segment revenue1.1721221521.347(1.347)-
Revenue 6.601.0281.255.414794.948360.2489.011.6387.5039.019.141
Operating income995.351227.143160.06726.8651.409.426(174.846)1.234.580
Interest(187.694)
Income before income taxes1.046.886
Depreciation and amortization(205.718)(60.749)(23.533)(9.044)(299.044)(76.937)(375.981)
Income (loss) from equity method investees37.280(950)1.17032437.824-37.824
Total assets16.215.9903.632.4652.073.225666.26622.587.9462.126.96724.714.913
thereof investments on equity method investees318.264187.67297.62924.051627.616-627.616
Additions of property, plant and equipment and intangible assets260.73853.66021.55917.874353.83184.515438.346