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Segment Reporting
 9 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
Each of our reportable segments generates revenues from the sale of medical devices. As of September 30, 2012 and December 31, 2011, 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-, restructuring- and litigation-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 2011 net sales and operating results based on standard currency exchange rates used for 2012 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)
 
2012
 
2011
*
2012
 
2011
*
Net sales
 
 
 
 
 
 
 
 
 
United States
 
$
907

 
$
990

 
$
2,833

 
$
3,054

 
EMEA
 
394

 
414

 
1,281

 
1,324

 
Japan
 
194

 
203

 
614

 
630

 
Inter-Continental
 
211

 
189

 
610

 
551

 
Net sales allocated to reportable segments
 
1,706

 
1,796

 
5,338

 
5,559

 
Sales generated from divested businesses
 
32

 
34

 
91

 
111

 
Impact of foreign currency fluctuations
 
(3
)
 
44

 
(1
)
 
104

 
 
 
$
1,735

 
$
1,874

 
$
5,428

 
$
5,774

 
(Loss) income before income taxes
 
 
 
 
 
 
 
 
 
United States
 
$
134

 
$
144

 
$
441

 
$
517

 
EMEA
 
155

 
168

 
501

 
557

 
Japan
 
96

 
82

 
301

 
281

 
Inter-Continental
 
73

 
69

 
197

 
197

 
Operating income allocated to reportable segments
 
458

 
463

 
1,440

 
1,552

 
Manufacturing operations
 
(61
)
 
(63
)
 
(224
)
 
(201
)
 
Corporate expenses and currency exchange
 
(53
)
 
(90
)
 
(197
)
 
(206
)
 
Goodwill and other intangible asset impairment charges; and acquisition-, divestiture-, restructuring-, and litigation related net charges
 
(839
)
 
(39
)
 
(4,710
)
 
(86
)
 
Amortization expense
 
(99
)
 
(97
)
 
(294
)
 
(325
)
 
 
 
(594
)
 
174

 
(3,985
)
 
734

 
Other expense, net
 
(69
)
 
(63
)
 
(174
)
 
(192
)
 
 
 
$
(663
)
 
$
111

 
$
(4,159
)
 
$
542

 

* We have restated prior year regional detail to conform to current year presentation.