Segment Reporting

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

Effective as of January 1, 2013, we reorganized our business from geographic regions to fully operationalized global business units. Following the reorganization, based on information regularly reviewed by our chief operating decision maker, we have three new reportable segments comprised of: Cardiovascular, Rhythm Management, and MedSurg. Our reportable segments represent an aggregate of operating segments. We have restated the prior period to conform to the current year presentation of our reportable segments.

Each of our reportable segments generates revenues from the sale of medical devices. We measure and evaluate our reportable segments based on segment net sales and operating income, excluding the impact of changes in foreign currency and sales from divested businesses. Sales generated from reportable segments and divested businesses, as well as operating results of reportable segments and corporate expenses, are based on internally-derived standard currency exchange rates, which may differ from year to year, and do not include intersegment profits. We restated segment information for the prior period based on standard currency exchange rates used for the current period in order to remove the impact of foreign currency exchange fluctuations. Based on information regularly reviewed by our chief operating decision maker following our reorganization, we also restated certain expenses associated with our manufacturing and corporate operations. We exclude from segment operating income certain corporate-related expenses and 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; and amortization expense. 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.

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 March 31,
(in millions)	2013			2012*
Net sales
Interventional Cardiology	$	514		$	598
Peripheral Interventions	194			188
Cardiovascular	708			786
Cardiac Rhythm Management	485			504
Electrophysiology	35			37
Rhythm Management	520			541
Endoscopy	313			298
Urology/Women's Health	119			118
Neuromodulation	89			83
MedSurg	521			499
Net sales allocated to reportable segments	1,749			1,826
Sales generated from divested businesses	36			29
Impact of foreign currency fluctuations	(24		)	11
	$	1,761		$	1,866
Income (loss) before income taxes
Cardiovascular	$	170		$	191
Rhythm Management	63			83
MedSurg	150			133
Operating income allocated to reportable segments	383			407
Corporate expenses and currency exchange	(70		)	(84		)
Goodwill and other intangible asset impairment charges; and acquisition-, divestiture-, restructuring-, and litigation related charges or credits	(540		)	(30		)
Amortization expense	(103		)	(97		)
Operating (loss) income	(330		)	196
Other expense, net	(64		)	(73		)
Loss (income) before income taxes	$	(394	)	$	123

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

	Three Months Ended, March 31,
(in millions)	2013			2012*
Depreciation expense
Cardiovascular	$	24		$	27
Rhythm Management	23			23
MedSurg	16			17
Depreciation expense allocated to reportable segments	63			67
Corporate expenses and currency exchange	(2		)	(1		)
	$	61		$	66

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

	As of
(in millions)	March 31, 2013		December 31, 2012*
Total assets
Cardiovascular	$	1,539	$	1,535
Rhythm Management	1,336		1,350
MedSurg	958		967
Total tangible assets allocated to reportable segments	3,833		3,852
Goodwill	5,552		5,973
Other intangible assets	6,177		6,289
All other corporate and manufacturing operations assets	1,201		1,040
	$	16,763	$	17,154

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