SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Edwards Lifesciences conducts operations worldwide and is managed in the following four reportable segments: United States, Europe, Japan, and Rest of World. All regions sell products that are used to treat advanced cardiovascular disease. The Company's operating segments are organized primarily based on economic characteristics as well as other characteristics, including types of customers, nature of the regulatory environment, and product offerings.

The Company's geographic segments are reported based on the financial information provided to the Chief Operating Decision Maker ("CODM"), which is the Company's Chief Executive Officer. The CODM evaluates the performance of the Company's reportable segments based on segment net sales and segment operating income. The CODM considers budget or forecast-to-actual results variances for segment operating income on a periodic basis for evaluating the performance of each segment and making decisions about allocating capital and other resources to each segment.

Segment net sales are based on actual foreign exchange rates. Segment expenses and segment operating income are based on internally derived foreign exchange rates and do not include inter-segment profits. Because of the interdependence of the reportable segments, the operating profit as presented may not be representative of the geographical distribution that would occur if the segments were not interdependent. Net sales by geographic area are based on the location of the customer. There were no customers that represented 10% or more of the Company's total net sales.

Certain items are maintained at the corporate level and are not allocated to the segments. The non-allocated items include corporate research and development expenses, manufacturing variances, corporate headquarters costs, net interest income, global marketing expenses, special gains and charges, stock-based compensation, foreign currency hedging activities, certain litigation costs, changes in the fair value of contingent consideration liabilities, most of the Company's amortization, and a portion of the Company's depreciation expense. The CODM does not receive information on total assets by reportable segment.

The table below presents information about Edwards Lifesciences' reportable segments (in millions):

	Three Months Ended March 31,
	2025		2024
Segment Net Sales
United States	$	838.9	$	782.1
Europe	341.8		326.0
Japan	81.8		86.0
Rest of World	150.2		135.8
Total segment net sales	$	1,412.7	$	1,329.9
Cost of Sales
United States	$	146.0	$	139.7
Europe	82.2		73.6
Japan	12.3		11.8
Rest of World	39.8		38.4
Total segment cost of sales	$	280.3	$	263.5
Selling, general, and administrative expenses
United States	$	133.2	$	115.2
Europe	73.4		71.4
Japan	16.4		26.0
Rest of World	42.1		41.4
Total segment selling, general, and administrative expenses	$	265.1	$	254.0
Other Segment Items
United States	$	0.6	$	0.7
Europe	(8.3)		4.1
Japan	(4.6)		0.7
Rest of World	(9.2)		(1.1)
Total other segment items (a)	$	(21.5)	$	4.4
Segment Operating Income
United States	$	559.1	$	526.5
Europe	194.5		176.9
Japan	57.7		47.5
Rest of World	77.5		57.1
Total segment operating income	$	888.8	$	808.0

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(a)    Other segment items include research and development expenses and foreign currency.

The table below presents a reconciliation of segment operating income to consolidated pre-tax income (in millions):

	Three Months Ended March 31,
	2025		2024
Pre-tax Income Reconciliation
Segment operating income	$	888.8	$	808.0
Unallocated amounts:
Corporate items	(486.2)		(447.0)
Separation costs (Note 3)	(4.2)		—
Certain litigation expenses	(10.9)		(8.9)
Foreign currency	7.3		(3.1)
Consolidated operating income	394.8		349.0
Non-operating income	39.1		22.2
Consolidated pre-tax income	$	433.9	$	371.2

Enterprise-wide Information

(in millions)

Enterprise-wide information is based on actual foreign exchange rates used in the Company's consolidated financial statements. Refer to the segment information above for United States net sales. Sales within any other individual country were less than 10 percent of the Company's consolidated net sales for all periods presented.

	Three Months Ended March 31,
	2025		2024
Net Sales by Major Product Group
Transcatheter Aortic Valve Replacement	$	1,046.6	$	1,007.9
Transcatheter Mitral and Tricuspid Therapies	115.2		72.9
Surgical Structural Heart	250.9		249.1
	$	1,412.7	$	1,329.9