Aggregate segment operating income – The Company evaluates the performance of its operating segments based on segment operating income, and management uses aggregate segment operating income as a measure of the performance of operating businesses separate from non-operating factors. The Company believes that information about aggregate segment operating income assists investors by allowing them to evaluate changes in the operating results of the Company’s portfolio of businesses separate from non-operational factors that affect net income, thus providing separate insight into both operations and the other factors that affect reported results.
A reconciliation of segment operating income to net income is as follows (in millions):
| Quarter Ended | Six Months Ended | |||||||||||||||
| April 1, | April 2, | April 1, | April 2, | |||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Segment operating income | $ | 3,996 | $ | 3,822 | $ | 7,952 | $ | 8,089 | ||||||||
| Corporate and unallocated shared expenses | (161 | ) | (162 | ) | (293 | ) | (298 | ) | ||||||||
| Restructuring and impairment charges | — | — | — | (81 | ) | |||||||||||
| Interest expense, net | (84 | ) | (67 | ) | (183 | ) | (91 | ) | ||||||||
| Vice Gain | — | — | — | 332 | ||||||||||||
| Infinity Charge (1) | — | (147 | ) | — | (147 | ) | ||||||||||
| Income before income taxes | 3,751 | 3,446 | 7,476 | 7,804 | ||||||||||||
| Income taxes | (1,212 | ) | (1,170 | ) | (2,449 | ) | (2,618 | ) | ||||||||
| Net income | $ | 2,539 | $ | 2,276 | $ | 5,027 | $ | 5,186 | ||||||||
| (1) | The Infinity Charge was primarily due to an inventory write-down. The charge also included severance and other asset impairments and was reported in "Cost of products" in the Condensed Consolidated Statement of Income. | |
