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BUSINESS SEGMENT INFORMATION (Tables)
12 Months Ended
Dec. 31, 2019
BUSINESS SEGMENT INFORMATION  
Segment revenue reconciles to statutory revenues from continuing operations

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

2017

 

 

    

$ million

    

$ million

    

$ million

 

Reportable segment revenue

 

  

 

  

 

  

 

Orthopaedics

 

2,222

 

2,168

 

2,107

 

Sports Medicine & ENT

 

1,536

 

1,461

 

1,402

 

Advanced Wound Management

 

1,380

 

1,275

 

1,256

 

Revenue from external customers

 

5,138

 

4,904

 

4,765

 

 

Disaggregation of revenue

The following table shows the disaggregation of Group revenue by product franchise:

 

 

 

 

 

 

 

 

 

 

2019

 

20181

 

20171

 

 

    

$ million

    

$ million

    

$ million

 

Revenue by product from continuing operations

 

  

 

  

 

  

 

Knee Implants

 

1,042

 

1,017

 

984

 

Hip Implants

 

613

 

613

 

599

 

Other Reconstruction

 

79

 

62

 

45

 

Trauma

 

488

 

476

 

479

 

Orthopaedics

 

2,222

 

2,168

 

2,107

 

Sports Medicine Joint Repair

 

794

 

717

 

650

 

Arthroscopic Enabling Technologies

 

591

 

600

 

615

 

ENT (Ear, Nose and Throat)

 

151

 

144

 

137

 

Sports Medicine & ENT

 

1,536

 

1,461

 

1,402

 

Advanced Wound Care

 

714

 

740

 

720

 

Advanced Wound Bioactives

 

424

 

320

 

342

 

Advanced Wound Devices

 

242

 

215

 

194

 

Advanced Wound Management

 

1,380

 

1,275

 

1,256

 

Consolidated revenue from continuing operations

 

5,138

 

4,904

 

4,765

 

 

1

Revenue by franchise for the years ended 2018 and 2017 has been re-presented to align with the new global franchise structure effective from 1 January 2019. There has been no change in total revenue for the years ended 2018 and 2017. Other Reconstruction includes 2018: $62m (2017: $45m) previously in Other Surgical Businesses; Trauma includes 2018: $476m (2017: $479m) previously in Trauma & Extremities; Sports Medicine Joint Repair includes 2018: $17m (2017: $16m) and 2018: $3m (2017: $7m) previously in Trauma & Extremities and Other Surgical Businesses respectively; and ENT includes 2018: $144m (2017: $137m) previously in Other Surgical Businesses.

The following table shows the disaggregation of Group revenue by geographic market and product category. The disaggregation of revenue into the two product categories below reflects that in general the products in the Advanced Wound Management franchises are sold to wholesalers and intermediaries, while products in the other franchises are sold directly to hospitals, ambulatory surgery centers and distributors. The further disaggregation of revenue by Established Markets and Emerging Markets reflects that in general our products are sold through distributors and intermediaries in the Emerging Markets while in the Established Markets, with the exception of the Advanced Wound Care and Bioactives franchises, products are in general sold direct to hospitals and ambulatory surgery centers. The disaggregation by Established Markets and Emerging Markets also reflects their differing economic factors including volatility in growth and outlook.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

 

 

2018

 

 

 

 

 

2017

 

 

Established
Markets
1 

 

Emerging
Markets

 

Total

 

Established
Markets
1 

 

Emerging
Markets

 

Total

 

Established
Markets
1 

 

Emerging
Markets

 

Total

 

    

$ million

    

$ million

    

$ million

    

$ million

    

$ million

    

$ million

    

$ million

    

$ million

    

$ million

Orthopaedics, Sports Medicine & ENT

 

2,986

 

772

 

3,758

 

2,944

 

685

 

3,629

 

2,867

 

642

 

3,509

Advanced Wound Management

 

1,195

 

185

 

1,380

 

1,103

 

172

 

1,275

 

1,097

 

159

 

1,256

Total

 

4,181

 

957

 

5,138

 

4,047

 

857

 

4,904

 

3,964

 

801

 

4,765

1

Established Markets comprises the US, Australia, Canada, Europe, Japan and New Zealand.

 

Trading profit reconciles to operating profit

Segment trading profit is reconciled to the statutory measure below:

 

 

 

 

 

 

 

 

 

2019

 

20181

 

20171

 

    

$ million

    

$ million

    

$ million

Segment profit

 

 

 

 

 

 

Orthopaedics

 

666

 

 

 

 

Sports Medicine & ENT

 

489

 

 

 

 

Advanced Wound Management

 

370

 

 

 

 

Segment trading profit

 

1,525

 

 

 

 

Corporate costs

 

(356)

 

 

 

 

Group trading profit

 

1,169

 

1,123

 

1,048

Acquisition and disposal related items

 

(32)

 

 7

 

10

Restructuring and rationalisation expenses

 

(134)

 

(120)

 

 –

Amortisation and impairment of acquisition intangibles

 

(143)

 

(113)

 

(140)

Legal and other

 

(45)

 

(34)

 

16

Group operating profit

 

815

 

863

 

934

1Historical financial information is not available on a franchise basis.

Assets and liabilities by geographic location

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

2017

 

 

    

$ million

    

$ million

    

$ million

 

United Kingdom

 

385

 

354

 

364

 

United States of America

 

4,034

 

3,186

 

3,295

 

Other

 

1,405

 

1,224

 

1,287

 

Total non-current assets of the consolidated Group1

 

5,824

 

4,764

 

4,946