Segment Reporting

12 Months Ended

Sep. 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 Patient Support Systems segment now also includes an additional component of global marketing spend that was previously unallocated. The prior year segment information included in this Form 10-K has been updated to reflect these changes. Our revised operating structure contains the following reporting segments:

• Patient Support Systems – globally provides our specialty bed frames and surfaces and mobility solutions, as well as our clinical workflow solutions which specializes in software and information technologies to improve care and deliver actionable insight to caregivers and patients.

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

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

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.

	Year Ended September 30
	2017			2016			2015
Revenue:
Patient Support Systems	$	1,423.9		$	1,437.2		$	1,426.6
Front Line Care	885.3			809.7			139.0
Surgical Solutions	434.5			408.3			422.6
Total revenue	$	2,743.7		$	2,655.2		$	1,988.2
Divisional income:
Patient Support Systems	$	249.6		$	245.2		$	206.5
Front Line Care	231.8			202.1			41.5
Surgical Solutions	42.5			46.2			56.0
Other operating costs:
Non-allocated operating costs, administrative costs, and other	213.1			223.3			179.7
Special charges	37.4			39.9			41.2
Operating profit	273.4			230.3			83.1
Interest expense	(88.9		)	(90.4		)	(18.4		)
Loss on extinguishment of debt	—			(10.8		)	—
Investment income and other, net	(1.5		)	9.2			0.4
Income before income taxes	$	183.0		$	138.3		$	65.1

Geographic Information

Geographic data for net revenue and long-lived assets (which consist mainly of property and equipment leased to others) were as follows:

	Year Ended September 30
	2017		2016		2015
Net revenue to unaffiliated customers: (a)
United States	$	1,895.2	$	1,829.4	$	1,273.0
Foreign	848.5		825.8		715.2
Total revenue	$	2,743.7	$	2,655.2	$	1,988.2
Long-lived assets: (b)
United States	$	243.9	$	234.2	$	263.9
Foreign	111.5		115.8		114.5
Total long-lived assets	$	355.4	$	350.0	$	378.4

(a) Net revenue is attributed to geographic areas based on the location of the customer.

(b) Includes property and equipment leased to others.