Segments of Business and Geographic Areas (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Segment Reporting Information



	Sales to Customers
(Dollars in Millions)	2017		2016	2015
Consumer —
United States	$	5,565	5,420	5,222
International	8,037		7,887	8,285
Total	13,602		13,307	13,507
Pharmaceutical —
United States	21,474		20,125	18,333
International	14,782		13,339	13,097
Total	36,256		33,464	31,430
Medical Devices —
United States	12,824		12,266	12,132
International	13,768		12,853	13,005
Total	26,592		25,119	25,137
Worldwide total	$	76,450	71,890	70,074



	Income Before Tax				Identifiable Assets
(Dollars in Millions)	2017 ⁽³⁾		2016 ⁽⁴⁾	2015 ⁽⁵⁾	2017		2016
Consumer	$	2,524	2,441	1,787	$	25,030	23,971
Pharmaceutical	11,083		12,827	11,734	59,450		27,477
Medical Devices	5,392		5,578	6,826	45,413		39,773
Total	18,999		20,846	20,347	129,893		91,221
Less: Expense not allocated to segments ⁽¹⁾	1,326		1,043	1,151
General corporate ⁽²⁾					27,410		49,987
Worldwide total	$	17,673	19,803	19,196	$	157,303	141,208



	Additions to Property, Plant & Equipment				Depreciation and Amortization
(Dollars in Millions)	2017		2016	2015	2017		2016	2015
Consumer	$	485	486	544	$	674	608	559
Pharmaceutical	936		927	1,063	2,416		886	929
Medical Devices	1,566		1,472	1,631	2,216		1,928	1,945
Segments total	2,987		2,885	3,238	5,306		3,422	3,433
General corporate	292		341	225	336		332	313
Worldwide total	$	3,279	3,226	3,463	$	5,642	3,754	3,746

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas



	Sales to Customers				Long-Lived Assets ⁽⁶⁾
(Dollars in Millions)	2017		2016	2015	2017		2016
United States	$	39,863	37,811	35,687	$	38,556	36,934
Europe	17,126		15,770	15,995	56,677		21,996
Western Hemisphere excluding U.S.	6,041		5,734	6,045	2,990		2,961
Asia-Pacific, Africa	13,420		12,575	12,347	2,773		2,512
Segments total	76,450		71,890	70,074	100,996		64,403
General corporate					1,143		1,190
Other non long-lived assets					55,164		75,615
Worldwide total	$	76,450	71,890	70,074	$	157,303	141,208

See Note 1 for a description of the segments in which the Company operates.

Export sales are not significant. In 2017, the Company had two wholesalers distributing products for all three segments that represented approximately 14.0% and 10.0% of the total consolidated revenues. In 2016, the Company had two wholesalers distributing products for all three segments that represented approximately 13.5% and 10.7% of the total consolidated revenues. In 2015, the Company had one wholesaler distributing products for all three segments that represented approximately 12.5% of the total consolidated revenues.


⁽¹⁾	Amounts not allocated to segments include interest (income) expense and general corporate (income) expense.


⁽²⁾	General corporate includes cash, cash equivalents and marketable securities.

⁽³⁾

The Pharmaceutical segment includes $797 million for Actelion acquisition related costs, an in-process research and development expense of $396 million and net litigation expense of $117 million. The Medical Devices segment includes net litigation expense of $1,139 million, a restructuring related charge of $760 million, an asset impairment of $215 million primarily related to the insulin pump business and $140 million for AMO acquisition related costs. The Medical Devices segment includes a gain of $0.7 billion from the divestiture of Codman Neurosurgery. The Consumer segment includes a gain of $0.5 billion from the divestiture of COMPEED^®.

⁽⁴⁾

Includes net litigation expense of $806 million and a restructuring related charge of $685 million in the Medical Devices segment. The Pharmaceutical segment includes a positive adjustment of $0.5 billion to previous reserve estimates, an in-process research and development expense of $29 million, and gains from the divestitures of the controlled substance raw material and active pharmaceutical ingredient (API) business and certain anesthetic products in Europe.

⁽⁵⁾

The Medical Devices segment includes a restructuring related charge of $590 million, an intangible asset write-down of $346 million related to Acclarent, Synthes integration costs of $196 million and $148 million expense for the cost associated with the DePuy ASR^TMHip program. Includes $224 million of in-process research and development expense, comprised of $214 million and $10 million in the Pharmaceutical and Medical Devices segments, respectively. Includes net litigation expense of $141 million comprised of $136 million in the Pharmaceutical segment and $5 million in the Medical Devices segment, which included the gain from the litigation settlement agreement with Guidant for $600 million. The Medical Devices Segment includes a gain of $1.3 billion from the divestiture of the Cordis business. The Pharmaceutical segment includes a gain of $981 million from the U.S. divestiture of NUCYNTA^® and a positive adjustment of $0.5 billion to previous reserve estimates, including Managed Medicaid rebates. The Consumer segment includes a gain of $229 million from the divestiture of SPLENDA^® brand.


⁽⁶⁾	Long-lived assets include property, plant and equipment, net for 2017, and 2016 of $17,005 and $15,912, respectively, and intangible assets and goodwill, net for 2017 and 2016 of $85,134 and $49,681, respectively.