Segment Reporting

9 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We disclose segment information that is consistent with the way in which management operates and views the business. During our first quarter of fiscal 2017, we changed our segment reporting to reflect changes in our organizational structure and management’s operation and view of the business. We combined the prior year North America Patient Support Systems segment and International Patient Support Systems segment into a new segment called Patient Support Systems. Our new Patient Support Systems segment also includes an additional component of global marketing spend that was previously unallocated. The prior year segment information included in this Form 10-Q has been updated to reflect these changes. Our revised operating structure contains the following reporting segments:

• Patient Support Systems – globally sells and rents our specialty frames and surfaces and mobility solutions, as well as our clinical workflow solutions.

• Front Line Care – globally sells and rents respiratory care products, and sells medical diagnostic equipment and a diversified portfolio of devices that assess, diagnose, treat, and manage a wide variety of illnesses and diseases.

• Surgical Solutions – globally sells products that improve surgical safety and efficiency in the operating room including tables, lights, pendants, positioning devices and various other safety and accessory products.

Under our revised segments, our performance within each reportable segment continues to be measured on a divisional income basis before non-allocated operating and administrative costs, litigation, special charges, acquisition and integration costs, acquisition-related intangible asset amortization, and other unusual events. Divisional income generally represents the division’s gross profit less its direct operating costs along with an allocation of manufacturing and distribution costs, research and development and certain corporate functional expenses.

Non-allocated operating costs, administrative costs, and other includes functional expenses that support the entire organization such as administration, finance, legal and human resources, expenses associated with strategic developments, acquisition-related intangible asset amortization, and other events that are not indicative of operating trends. We exclude such amounts from divisional income to allow management to evaluate and understand divisional operating trends. The chief operating decision maker does not receive any asset information by operating segment and, accordingly, we do not report asset information by operating segment.

	Quarter Ended June 30						Year to Date Ended June 30
	2017			2016			2017			2016
Revenue:
Patient Support Systems	$	354.7		$	361.0		$	1,052.8		$	1,054.9
Front Line Care	227.1			192.7			639.9			598.2
Surgical Solutions	107.3			101.7			312.7			296.1
Total revenue	$	689.1		$	655.4		$	2,005.4		$	1,949.2
Divisional income:
Patient Support Systems	$	62.8		$	65.0		$	174.1		$	168.0
Front Line Care	56.4			47.5			160.3			143.2
Surgical Solutions	8.7			10.6			26.0			30.9
Other operating costs:
Non-allocated operating costs, administrative costs, and other	52.7			51.2			156.7			173.8
Special charges	34.8			13.7			43.7			31.5
Operating profit	40.4			58.2			160.0			136.8
Interest expense	(23.8		)	(23.0		)	(65.2		)	(68.2		)
Investment income and other, net	(0.5		)	0.1			(2.1		)	0.6
Income before income taxes	$	16.1		$	35.3		$	92.7		$	69.2