Segment and Geographic Area Information (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Segment and Geographic Area Information |
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| Schedule of segment information - net sales and operating earnings |
| | | | | | | | | | | | | | | | | | | | | Net Sales to External Customers (a) | | Operating Earnings (a) | (in millions) | | 2019 | | 2018 | | 2017 | | 2019 | | 2018 | | 2017 | Established Pharmaceutical Products | | $ | 4,486 | | $ | 4,422 | | $ | 4,287 | | $ | 904 | | $ | 894 | | $ | 848 | Nutritional Products | | | 7,409 | | | 7,229 | | | 6,925 | | | 1,705 | | | 1,652 | | | 1,589 | Diagnostic Products | | | 7,713 | | | 7,495 | | | 5,616 | | | 1,912 | | | 1,868 | | | 1,468 | Medical Devices | | | 12,239 | | | 11,370 | | | 10,325 | | | 3,769 | | | 3,500 | | | 3,011 | Total Reportable Segments | | | 31,847 | | | 30,516 | | | 27,153 | | $ | 8,290 | | $ | 7,914 | | $ | 6,916 | Other | | | 57 | | | 62 | | | 237 | | | | | | | | | | Total | | $ | 31,904 | | $ | 30,578 | | $ | 27,390 | | | | | | | | | |
| (a) | Net sales were unfavorably affected by the relatively stronger U.S. dollar in 2019 and 2018. Operating earnings were unfavorably affected by the impact of foreign exchange in 2019, 2018 and 2017. |
Note 17 — Segment and Geographic Area Information (Continued)
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| Schedule of reconciliation of operating earnings to earnings from continuing operations |
| | | | | | | | | | (in millions) | | 2019 | | 2018 | | 2017 | Total Reportable Segment Operating Earnings | | $ | 8,290 | | $ | 7,914 | | $ | 6,916 | Corporate functions and benefit plan costs | | | (468) | | | (618) | | | (506) | Net interest expense | | | (576) | | | (721) | | | (780) | Loss on extinguishment of debt | | | (63) | | | (167) | | | — | Share-based compensation | | | (519) | | | (477) | | | (406) | Amortization of intangible assets | | | (1,936) | | | (2,178) | | | (1,975) | Other, net (b) | | | (651) | | | (880) | | | (1,018) | Earnings from Continuing Operations Before Taxes | | $ | 4,077 | | $ | 2,873 | | $ | 2,231 |
| (b) | Other, net includes integration costs associated with the acquisition of St. Jude Medical and Alere, and restructuring charges in 2019. Other, net includes inventory step-up amortization, integration costs associated with the acquisition of St. Jude Medical and Alere, and restructuring charges in 2018. In 2017, Other, net includes inventory step-up amortization, integration costs associated with the acquisition of St. Jude Medical and Alere, and restructuring charges, partially offset by the gain on the sale of the AMO business. Charges for restructuring actions and other cost reduction initiatives were approximately $215 million in 2019, $153 million in 2018 and $384 million in 2017. |
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| Schedule of depreciation, additions to property, plant and equipment and total assets by segment |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Additions to | | | | | | | | | | | | | | | | | | | | | Property, Plant | | | | | | | | | | | | Depreciation | | and Equipment (c) | | Total Assets | (in millions) | | 2019 | | 2018 | | 2017 | | 2019 | | 2018 | | 2017 | | 2019 | | 2018 | | 2017 | Established Pharmaceuticals | | $ | 98 | | $ | 92 | | $ | 90 | | $ | 109 | | $ | 131 | | $ | 181 | | $ | 2,858 | | $ | 2,664 | | $ | 2,728 | Nutritionals | | | 139 | | | 150 | | | 164 | | | 141 | | | 86 | | | 147 | | | 3,274 | | | 3,071 | | | 3,160 | Diagnostics | | | 403 | | | 397 | | | 300 | | | 726 | | | 609 | | | 374 | | | 5,235 | | | 4,464 | | | 4,226 | Medical Devices | | | 266 | | | 294 | | | 338 | | | 532 | | | 408 | | | 276 | | | 6,640 | | | 5,886 | | | 5,799 | Total Reportable Segments | | | 906 | | | 933 | | | 892 | | | 1,508 | | | 1,234 | | | 978 | | $ | 18,007 | | $ | 16,085 | | $ | 15,913 | Other | | | 172 | | | 167 | | | 154 | | | 160 | | | 160 | | | 157 | | | | | | | | | | Total | | $ | 1,078 | | $ | 1,100 | | $ | 1,046 | | $ | 1,668 | | $ | 1,394 | | $ | 1,135 | | | | | | | | | |
| (c) | Amounts exclude property, plant and equipment acquired through business acquisitions. |
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| Schedule of reconciliation of segment assets to total assets |
| | | | | | | | | | (in millions) | | 2019 | | 2018 | | 2017 | Total Reportable Segment Assets | | $ | 18,007 | | $ | 16,085 | | $ | 15,913 | Cash and investments | | | 5,023 | | | 4,983 | | | 10,493 | Goodwill and intangible assets | | | 40,220 | | | 42,196 | | | 45,493 | All other | | | 4,637 | | | 3,909 | | | 4,351 | Total Assets | | $ | 67,887 | | $ | 67,173 | | $ | 76,250 |
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| Schedule of net sales to external customers by geographic areas |
| | | | | | | | | | | | Net Sales to External | | | Customers (d) | (in millions) | | 2019 | | 2018 | | 2017 | United States | | $ | 11,398 | | $ | 10,839 | | $ | 9,673 | China | | | 2,346 | | | 2,311 | | | 2,146 | Germany | | | 1,751 | | | 1,619 | | | 1,366 | Japan | | | 1,435 | | | 1,326 | | | 1,255 | India | | | 1,397 | | | 1,333 | | | 1,237 | Switzerland | | | 1,068 | | | 1,005 | | | 841 | The Netherlands | | | 975 | | | 930 | | | 929 | All Other Countries | | | 11,534 | | | 11,215 | | | 9,943 | Consolidated | | $ | 31,904 | | $ | 30,578 | | $ | 27,390 |
(d)Sales by country are based on the country that sold the product.
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