Segment Reporting

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

Effective 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 2012 and 2011 information to conform to our new global reportable segment presentation.

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, 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 prior periods 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 consolidated statements of operations is as follows:

	Year Ended December 31,
(in millions)	2013			2012		2011
Net sales				(restated)		(restated)
Interventional Cardiology	$	2,055		$	2,179	$	2,444
Peripheral Interventions	812			769		713
Cardiovascular	2,867			2,948		3,157
Cardiac Rhythm Management	1,919			1,927		2,072
Electrophysiology	157			147		145
Rhythm Management	2,076			2,074		2,217
Endoscopy	1,331			1,242		1,158
Urology and Women's Health	513			496		491
Neuromodulation	454			367		336
MedSurg	2,298			2,105		1,985
Net sales allocated to reportable segments	7,241			7,127		7,359
Sales generated from business divestitures	58			122		140
Impact of foreign currency fluctuations	(156		)	—		123
	$	7,143		$	7,249	$	7,622

	Year Ended December 31,
(in millions)	2013			2012		2011
Depreciation expense				(restated)		(restated)
Cardiovascular	$	111		$	106	$	116
Rhythm Management	99			108		105
MedSurg	73			74		73
Depreciation expense allocated to reportable segments	283			288		294
Impact of foreign currency fluctuations	(4		)	—		2
	$	279		$	288	$	296

	Year Ended December 31,
(in millions)	2013			2012			2011
Income (loss) before income taxes				(restated)			(restated)
Cardiovascular	$	710		$	739		$	829
Rhythm Management	232			242			320
MedSurg	724			637			565
Operating income allocated to reportable segments	1,666			1,618			1,714
Corporate expenses and currency exchange	(314		)	(258		)	(254		)
Goodwill and intangible asset impairment charges and acquisition-, divestiture-, litigation-, and restructuring-related net charges	(822		)	(4,833		)	(135		)
Amortization expense	(410		)	(395		)	(421		)
Operating income (loss)	120			(3,868		)	904
Other expense, net	(343		)	(239		)	(262		)
	$	(223	)	$	(4,107	)	$	642

	As of December 31,
(in millions)	2013		2012
Total assets			(restated)
Cardiovascular	$	1,545	$	1,535
Rhythm Management	1,343		1,350
MedSurg	1,026		967
Total assets allocated to reportable segments	3,914		3,852
Goodwill	5,693		5,973
Other intangible assets, net	5,950		6,289
All other corporate assets	1,014		1,040
	$	16,571	$	17,154

Enterprise-Wide Information (based on actual currency exchange rates)

	Year Ended December 31,
(in millions)	2013		2012		2011
Net sales
Interventional Cardiology	$	1,997	$	2,179	$	2,495
Cardiac Rhythm Management	1,886		1,908		2,087
Endoscopy	1,300		1,252		1,187
Peripheral Interventions	789		774		731
Urology and Women’s Health	505		500		498
Neuromodulation	453		367		336
Electrophysiology	155		147		147
	7,085		7,127		7,481
Sales generated from divested businesses	58		122		141
	$	7,143	$	7,249	$	7,622
United States	$	3,743	$	3,756	$	4,010
Japan	744		931		951
Other countries	2,598		2,440		2,520
	7,085		7,127		7,481
Sales generated from divested businesses	58		122		141
	$	7,143	$	7,249	$	7,622

	As of December 31,
(in millions)	2013		2012		2011
Long-lived assets
United States	$	998	$	1,065	$	1,141
Ireland	240		252		231
Other foreign countries	308		247		298
Property, plant and equipment, net	1,546		1,564		1,670
Goodwill	5,693		5,973		9,761
Other intangible assets, net	5,950		6,289		6,473
	$	13,189	$	13,826	$	17,904