Segment Reporting

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

We have three reportable segments comprised of: Cardiovascular, Rhythm Management, and MedSurg, which represent an aggregation of our 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 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; pension termination charges; 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)	2015			2014			2013
Net sales
Interventional Cardiology	$	2,242		$	2,092		$	1,995
Peripheral Interventions	975			861			805
Cardiovascular	3,217			2,953			2,800
Cardiac Rhythm Management	1,934			1,922			1,882
Electrophysiology	248			228			154
Rhythm Management	2,182			2,150			2,036
Endoscopy	1,422			1,343			1,277
Urology and Pelvic Health	735			542			505
Neuromodulation	512			474			454
MedSurg	2,669			2,359			2,236
Net sales allocated to reportable segments	8,068			7,462			7,072
Sales generated from business divestitures	—			4			58
Impact of foreign currency fluctuations	(591		)	(86		)	13
	$	7,477		$	7,380		$	7,143

	Year Ended December 31,
(in millions)	2015			2014		2013
Depreciation expense
Cardiovascular	$	116		$	120	$	111
Rhythm Management	94			92		99
MedSurg	73			75		73
Depreciation expense allocated to reportable segments	283			287		283
Impact of foreign currency fluctuations	(9		)	—		(4		)
	$	274		$	287	$	279

	Year Ended December 31,
(in millions)	2015			2014			2013
Income (loss) before income taxes
Cardiovascular	$	972		$	767		$	665
Rhythm Management	328			289			211
MedSurg	856			746			679
Operating income allocated to reportable segments	2,156			1,802			1,555
Corporate expenses and currency exchange	(486		)	(308		)	(203		)
Goodwill and intangible asset impairment charges; pension termination charges; and acquisition-, divestiture-, litigation-, and restructuring-related net charges	(1,502		)	(1,357		)	(822		)
Amortization expense	(495		)	(438		)	(410		)
Operating income (loss)	(327		)	(301		)	120
Other expense, net	(323		)	(208		)	(343		)
	$	(650	)	$	(509	)	$	(223	)

	As of December 31,
(in millions)	2015		2014
Total assets			(restated*)
Cardiovascular	$	1,583	$	1,501
Rhythm Management	1,279		1,329
MedSurg	1,141		982
Total assets allocated to reportable segments	4,003		3,812
Goodwill	6,473		5,898
Other intangible assets, net	6,194		5,606
All other corporate assets	1,463		1,708
	$	18,133	$	17,024

*Certain prior year balances related to debt issuance costs have been restated to reflect our adoption of ASC Update No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.  Amounts reclassified from other long-term assets to long-term debt were not material. Please refer to Note A - Significant Accounting Policies and Note Q - New Accounting Pronouncements for additional details.

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

	Year Ended December 31,
(in millions)	2015		2014		2013
Net sales
Interventional Cardiology	$	2,033	$	2,057	$	1,997
Cardiac Rhythm Management	1,807		1,912		1,886
Endoscopy	1,306		1,323		1,280
Peripheral Interventions	904		850		809
Urology and Pelvic Health	693		535		505
Neuromodulation	501		472		453
Electrophysiology	233		227		155
	7,477		7,376		7,085
Sales generated from divested businesses	—		4		58
	$	7,477	$	7,380	$	7,143
United States	$	4,229	$	3,885	$	3,743
Japan	602		678		744
Other countries	2,646		2,813		2,598
	7,477		7,376		7,085
Sales generated from divested businesses	—		4		58
	$	7,477	$	7,380	$	7,143

	As of December 31,
(in millions)	2015		2014		2013
Long-lived assets
United States	$	1,018	$	1,002	$	998
Ireland	170		197		240
Other foreign countries	302		308		308
Property, plant and equipment, net	1,490		1,507		1,546
Goodwill	6,473		5,898		5,693
Other intangible assets, net	6,194		5,606		5,950
	$	14,157	$	13,011	$	13,189