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Segment Reporting
9 Months Ended
Sep. 30, 2011
Segment Reporting [Abstract] 
SEGMENT REPORTING
SEGMENT REPORTING
Each of our reportable segments generates revenues from the sale of medical devices. As of September 30, 2011 and December 31, 2010, we had four reportable segments based on geographic regions: the United States; EMEA, consisting of Europe, the Middle East and Africa; Japan; and Inter-Continental, consisting of our Asia Pacific and the Americas operating segments, which include the emerging markets of Brazil, China and India. The reportable segments represent an aggregate of all operating divisions within each segment. We measure and evaluate our reportable segments based on segment net sales and operating income. We exclude from segment operating income certain corporate and manufacturing-related expenses, as our corporate and manufacturing functions do not meet the definition of a segment, as defined by ASC Topic 280, Segment Reporting. In addition, certain transactions or adjustments that our Chief Operating Decision Maker considers to be non-recurring and/or non-operational, such as amounts related to goodwill and other intangible asset impairment charges; acquisition-, divestiture-, and restructuring-related charges and credits; as well as amortization expense, are excluded from segment operating income. Although we exclude these amounts from segment operating income, they are included in reported consolidated operating income (loss) and are included in the reconciliation below.
We manage our international operating segments on a constant currency basis. Sales generated from reportable segments and divested businesses, as well as operating results of reportable segments and expenses from manufacturing operations, are based on internally-derived standard currency exchange rates, which may differ from year to year, and do not include intersegment profits. We have restated the segment information for 2010 net sales and operating results based on standard currency exchange rates used for 2011 in order to remove the impact of currency fluctuations. Because of the interdependence of the reportable segments, the operating profit as presented may not be representative of the geographic distribution that would occur if the segments were not interdependent. A reconciliation of the totals reported for the reportable segments to the applicable line items in our accompanying unaudited condensed consolidated statements of operations is as follows:

 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(in millions)
 
2011
 
2010
 
2011
 
2010
Net sales
 
 
 
 
 
 
 
 
United States
 
$
990

 
$
1,077

 
$
3,054

 
$
3,159

EMEA
 
420

 
411

 
1,343

 
1,343

Japan
 
203

 
203

 
630

 
644

Inter-Continental
 
183

 
168

 
533

 
494

Net sales allocated to reportable segments
 
1,796

 
1,859

 
5,560

 
5,640

Sales generated from divested businesses
 
34

 
79

 
110

 
255

Impact of foreign currency fluctuations
 
44

 
(22
)
 
104

 
(91
)
 
 
$
1,874

 
$
1,916

 
$
5,774

 
$
5,804

Income (loss) before income taxes
 
 
 
 
 
 
 
 
United States
 
$
146

 
$
215

 
$
525

 
$
560

EMEA
 
167

 
166

 
554

 
569

Japan
 
83

 
86

 
281

 
296

Inter-Continental
 
67

 
62

 
192

 
187

Operating income allocated to reportable segments
 
463

 
529

 
1,552

 
1,612

Manufacturing operations
 
(63
)
 
(65
)
 
(201
)
 
(243
)
Corporate expenses and currency exchange
 
(90
)
 
(61
)
 
(206
)
 
(221
)
Goodwill and other intangible asset impairment charges; and acquisition-, divestiture-, and restructuring- related net charges
 
(39
)
 
(23
)
 
(86
)
 
(1,771
)
Amortization expense
 
(97
)
 
(129
)
 
(325
)
 
(381
)
 
 
174

 
251

 
734

 
(1,004
)
Other expense, net
 
(63
)
 
(88
)
 
(192
)
 
(288
)
 
 
$
111

 
$
163

 
$
542

 
$
(1,292
)