Segment Reporting

3 Months Ended

Mar. 31, 2014

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 reportable segments comprised of: Cardiovascular, Rhythm Management, and MedSurg. Our reportable segments represent an aggregate of operating 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 fluctuation and for the realignment of certain product lines from Endoscopy to Peripheral Interventions as of January 1, 2014.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)	2014			2013
				(restated)
Net sales
Interventional Cardiology	$	501		$	498
Peripheral Interventions	204			193
Cardiovascular	705			691
Cardiac Rhythm Management	464			475
Electrophysiology	58			34
Rhythm Management	522			509
Endoscopy	316			300
Urology and Women's Health	126			117
Neuromodulation	109			89
MedSurg	551			506
Net sales allocated to reportable segments	1,778			1,706
Sales generated from divested businesses	2			36
Impact of foreign currency fluctuations	(6		)	19
	$	1,774		$	1,761
Income (loss) before income taxes
Cardiovascular	$	171		$	158
Rhythm Management	66			57
MedSurg	168			140
Operating income allocated to reportable segments	405			355
Corporate expenses and currency exchange	(50		)	(42		)
Goodwill and other intangible asset impairment charges; and acquisition-, divestiture-, restructuring-, and litigation related charges or credits	(49		)	(540		)
Amortization expense	(109		)	(103		)
Operating income (loss)	197			(330		)
Other expense, net	(51		)	(64		)
Income (loss) before income taxes	$	146		$	(394	)