Notes to Consolidated Financial Statements
   
11. Company Data by Operating and Geographic Segment

The Company has three reportable segments: Pharmaceuticals, Consumer Health Care, and Corporate and All Other. The Company's Pharmaceuticals and Consumer Health Care reportable segments are strategic business units that offer different products and services. The reportable segments are managed separately because they manufacture, distribute and sell distinct products and provide services, which require various technologies and marketing strategies. The Company is not dependent on any single customer or major group of customers for its sales (see Note 1).
    The Pharmaceuticals segment manufactures, distributes and sells branded and generic human ethical pharmaceuticals, biologicals, nutritionals, and animal biologicals and pharmaceuticals. Principal products include women's health care products, infant nutritionals, cardiovascular products, neuroscience therapies, gastroenterology drugs, anti-infectives, vaccines, biopharmaceuticals, oncology therapies, musculoskeletal therapies and transplantation products. Principal animal health products include vaccines, pharmaceuticals, endectocides and growth implants.
    The Consumer Health Care segment manufactures, distributes and sells over-the-counter health care products whose principal products include analgesics, cough/cold/allergy remedies, nutritional supplements, herbal products, and hemorrhoidal, antacid, asthma and other relief items.
    Corporate is responsible for the treasury, tax and legal operations of the Company's businesses and maintains and incurs certain assets, liabilities, expenses, gains and losses related to the overall management of the Company which are not allocated to the other reportable segments. All Other consists of the Sherwood-Davis & Geck medical devices business, which the Company divested in February 1998.
    The accounting policies of the segments described above are the same as those described in the Summary of Significant Accounting Policies in Note 1. The Company evaluates the performance of the Pharmaceuticals and Consumer Health Care reportable segments based on income from continuing operations before taxes which includes goodwill amortization, gains on the sales of non-corporate assets and certain other items. Corporate and All Other includes special charges, interest expense and interest income, gains on the sales of investments and other corporate assets, including the sale of Immunex common stock, the Warner-Lambert Company termination fee, certain litigation provisions, including the Redux and Pondimin litigation charges, goodwill impairment, the gain on the sale of the Sherwood-Davis & Geck medical devices business and other miscellaneous items.

Company Data by Operating Segment
(In millions)
Years Ended December 31,
2000 1999 1998
Net Revenue from Customers
Pharmaceuticals $10,797.6  $ 9,505.9  $ 8,901.8 
Consumer Health Care 2,465.2  2,375.3  2,174.7 
Corporate and All Other 192.1 
Consolidated Total $13,262.8  $11,881.2  $11,268.6 
 
Income (Loss) from Continuing
Operations before Taxes(1)
Pharmaceuticals $ 2,930.0  $ 2,554.6  $ 2,488.3 
Consumer Health Care 616.1  578.6  509.7 
Corporate and All Other(2) (4,647.1) (5,040.5) 91.9 
Consolidated Total $(1,101.0) $ (1,907.3) $ 3,089.9 
 
Depreciation and
Amortization Expense
Pharmaceuticals $ 458.8  $ 465.6  $ 443.8 
Consumer Health Care 61.0  57.3  52.3 
Corporate and All Other 15.2  18.3  15.5 
Consolidated Total $ 535.0  $ 541.2  $ 511.6 
 
Total Assets
Pharmaceuticals $12,388.6  $11,101.4  $11,158.2 
Consumer Health Care 1,697.2  1,864.4  1,809.6 
Net assets-discontinued business held for sale 4,192.3  4,078.7 
Corporate and All Other 7,006.7  5,965.7  3,177.7 
Consolidated Total $21,092.5  $23,123.8  $20,224.2 
 
Expenditures for
Long-Lived Assets
Pharmaceuticals $ 1,720.1  $ 1,038.9  $ 571.3 
Consumer Health Care(3) 38.4  66.8  100.3 
Corporate and All Other 55.0  31.4  20.5 
Consolidated Total $ 1,813.5  $ 1,137.1  $ 692.1 
 

Company Data by Geographic Segment
(In millions)
Years Ended December 31,
2000 1999 1998
Net Revenue from Customers(4)
United States $ 8,007.6  $ 7,229.0  $ 6,791.1 
United Kingdom 898.1  745.1  623.1 
Other International 4,357.1  3,907.1  3,854.4 
Consolidated Total $13,262.8  $11,881.2  $11,268.6 
 
Long-Lived Assets
at December 31(4),
United States $ 6,228.8  $ 6,379.7  $ 6,083.6 
International 3,074.8  2,824.8  2,889.6 
Consolidated Total $ 9,303.6  $ 9,204.5  $ 8,973.2 

(1)
Income (loss) from continuing operations before taxes included goodwill amortization for 2000, 1999 and 1998 as follows: Pharmaceuticals — $147.8, $154.3 and $158.2, and Consumer Health Care — $31.8, $32.7 and $22.6, respectively, and Corporate and All Other — $0.9 in 1998.
(2)
2000 and 1999 Corporate and All Other included litigation charges of $7,500.0 and $4,750.0, respectively, relating to the litigation brought against the Company regarding the use of the diet drug products Redux or Pondimin. The charges provide for all anticipated payments in connection with the nationwide, class action settlement, payments to the approximately 40,000 opt out claimants with whom the Company has agreed to settle, and all anticipated payments to resolve the claims of the remaining approximately 10,000 opt outs and any PPH claimants, as well as all legal fees and other costs, net of insurance (see Note 10). The charges related to the Pharmaceuticals operating segment.
2000 Corporate and All Other included:
  • Income of $1,709.4 resulting from the receipt of a $1,800.0 termination fee provided for under the merger agreement with Warner-Lambert Company offset, in part, by certain related expenses (see Note 3).
  • Income of $2,061.2 relating to the Company selling a portion of its investment in Immunex common stock in a joint public equity offering with Immunex (see Note 2). The transaction related to the Pharmaceuticals operating segment.
  • Goodwill impairment of $401.0 related to the goodwill associated with generic pharmaceuticals and the Solgar consumer health care product line. The charge related to the operating segments as follows: Pharmaceuticals —$231.0 and Consumer Health Care —$170.0 (see Note 3).
  • A special charge of $80.0 related to the voluntary ceasing of production and subsequent market withdrawal of products containing PPA (see Note 3). The charge related to the Consumer Health Care operating segment.
  • A special charge of $267.0 related to costs associated with certain product discontinuations (see Note 3). The charge related to the Pharmaceuticals operating segment.
1999 Corporate and All Other included a special charge of $82.0 related to the suspension of shipments and the voluntary market withdrawal of RotaShield, the Company's rotavirus vaccine (see Note 3). The charge related to the Pharmaceuticals operating segment.
1998 Corporate and All Other included a special charge for restructuring and related asset impairments of $321.2 (see Note 3). The charge related to the operating segments as follows: Pharmaceuticals —$294.9 and Consumer Health Care —$26.3.
1998 Corporate and All Other included the gain on the sale of the Sherwood-Davis & Geck medical devices business of $592.1 (see Note 2).
(3)
1998 expenditures for long-lived assets for Consumer Health Care excluded $408.6 of expenditures for goodwill and long-lived assets acquired in purchase business combinations.
(4)
Other than the United States and the United Kingdom, no other country in which the Company operates had net revenue greater than 5% of the respective consolidated total. Other than the United States, no country in which the Company operates had long-lived assets greater than 5% of the respective consolidated total. The basis for attributing net revenue to geographic areas is the location of the customer. Long-lived assets consist of property, plant and equipment, goodwill and other intangibles, and other assets, excluding deferred taxes, net investments in equity companies and other investments.