Segment Reporting

12 Months Ended

Dec. 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. We have restated the 2012 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 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 periods based on our internally-derived standard currency exchange rates used for the current period in order to remove the impact of foreign currency exchange rate fluctuations, and for the realignment of certain product lines from Endoscopy to Peripheral Interventions as of January 1, 2014, which was not material. We exclude from segment operating income certain corporate-related expenses and certain charges or credits 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)	2014			2013		2012
Net sales				(restated)		(restated)
Interventional Cardiology	$	2,092		$	1,995	$	2,116
Peripheral Interventions	861			805		764
Cardiovascular	2,953			2,800		2,880
Cardiac Rhythm Management	1,922			1,882		1,887
Electrophysiology	228			154		145
Rhythm Management	2,150			2,036		2,032
Endoscopy	1,343			1,277		1,190
Urology and Women's Health	542			505		489
Neuromodulation	474			454		367
MedSurg	2,359			2,236		2,046
Net sales allocated to reportable segments	7,462			7,072		6,958
Sales generated from business divestitures	4			58		122
Impact of foreign currency fluctuations	(86		)	13		169
	$	7,380		$	7,143	$	7,249

	Year Ended December 31,
(in millions)	2014		2013			2012
Depreciation expense			(restated)			(restated)
Cardiovascular	$	120	$	111		$	107
Rhythm Management	92		99			109
MedSurg	75		73			75
Depreciation expense allocated to reportable segments	287		283			291
Impact of foreign currency fluctuations	—		(4		)	(3		)
	$	287	$	279		$	288

	Year Ended December 31,
(in millions)	2014			2013			2012
Income (loss) before income taxes				(restated)			(restated)
Cardiovascular	$	767		$	665		$	685
Rhythm Management	289			211			217
MedSurg	746			679			590
Operating income allocated to reportable segments	1,802			1,555			1,492
Corporate expenses and currency exchange	(308		)	(203		)	(132		)
Goodwill and intangible asset impairment charges and acquisition-, divestiture-, litigation-, and restructuring-related net charges	(1,357		)	(822		)	(4,833		)
Amortization expense	(438		)	(410		)	(395		)
Operating income (loss)	(301		)	120			(3,868		)
Other expense, net	(208		)	(343		)	(239		)
	$	(509	)	$	(223	)	$	(4,107	)

	As of December 31,
(in millions)	2014		2013
Total assets
Cardiovascular	$	1,501	$	1,545
Rhythm Management	1,329		1,343
MedSurg	982		1,026
Total assets allocated to reportable segments	3,812		3,914
Goodwill	5,898		5,693
Other intangible assets, net	5,606		5,950
All other corporate assets	1,726		1,014
	$	17,042	$	16,571

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

	Year Ended December 31,
(in millions)	2014		2013		2012
Net sales			(restated)*		(restated)*
Interventional Cardiology	$	2,057	$	1,997	$	2,179
Cardiac Rhythm Management	1,912		1,886		1,908
Endoscopy	1,323		1,280		1,239
Peripheral Interventions	850		809		787
Urology and Women’s Health	535		505		500
Neuromodulation	472		453		367
Electrophysiology	227		155		147
	7,376		7,085		7,127
Sales generated from divested businesses	4		58		122
	$	7,380	$	7,143	$	7,249
United States	$	3,885	$	3,743	$	3,756
Japan	678		744		931
Other countries	2,813		2,598		2,440
	7,376		7,085		7,127
Sales generated from divested businesses	4		58		122
	$	7,380	$	7,143	$	7,249

*We restated segment information for the prior periods for the realignment of certain product lines from Endoscopy to Peripheral Interventions as of January 1, 2014.

	As of December 31,
(in millions)	2014		2013		2012
Long-lived assets
United States	$	1,002	$	998	$	1,065
Ireland	197		240		252
Other foreign countries	308		308		247
Property, plant and equipment, net	1,507		1,546		1,564
Goodwill	5,898		5,693		5,973
Other intangible assets, net	5,606		5,950		6,289
	$	13,011	$	13,189	$	13,826