Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2023

Reconciliation of Revenue from Segments to Consolidated

A reconciliation of the totals reported for the reportable segments to the applicable line items within our accompanying consolidated statements of operations is as follows (in millions, except percentages). Prior period amounts have been restated at constant currency to conform to the current year presentation.


	Year Ended December 31,
Net sales	2023		2022		2021
MedSurg	$	5,320	$	4,805	$	4,389
Cardiovascular	8,630		7,599		6,721
Total net sales of reportable segments	13,949		12,404		11,109
Other(1)	—		(60)		12
Impact of foreign currency fluctuations	291		338		766
	$	14,240	$	12,682	$	11,888

Reconciliation of Operating Profit (Loss) from Segments to Consolidated


	Year Ended December 31,
Income (loss) before income taxes	2023		2022		2021
MedSurg	$	1,796	$	1,458	$	1,368
Cardiovascular	2,235		1,748		1,572
Total operating income of reportable segments	4,031		3,206		2,940
Unallocated amounts:
Corporate expenses, including hedging activities and impact of foreign currency fluctuations on operating income of reportable segments	(293)		96		67
Intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits) and EU MDR implementation costs	(567)		(789)		(1,070)
Amortization expense	(828)		(803)		(741)
Other(1)	—		(60)		3
Operating income (loss)	2,343		1,649		1,199
Other income (expense), net	(358)		(508)		(123)
Income (loss) before income taxes	$	1,985	$	1,141	$	1,076

(1) In 2022, amounts reflect sales reserves established for Italian government payback provisions, which are being disputed in the Italian court system. These amounts were not allocated to our reportable segments or considered by our CODM for resource allocation and decision-making purposes. In 2021, amounts relate to our Specialty Pharmaceuticals business. On March 1, 2021, we completed the divestiture of the Specialty Pharmaceuticals business. Prior to the divestiture, we presented the Specialty Pharmaceuticals business as a standalone operating segment alongside our reportable segments

Segment operating income as percentage of net sales


Operating income of reportable segments as a percentage of net sales of reportable segments	Year Ended December 31,
	2023		2022		2021
MedSurg	33.8	%	30.3	%	31.2	%
Cardiovascular	25.9	%	23.0	%	23.4	%

Reconciliation of Assets from Segment to Consolidated


	Year Ended December 31,
Depreciation expense	2023		2022		2021
MedSurg	$	103	$	88	$	91
Cardiovascular	263		245		261


Consolidated depreciation expense	$	367	$	333	$	352


	As of December 31,
Total assets	2023		2022
MedSurg	$	2,888	$	2,501
Cardiovascular	5,988		5,205
Total assets of reportable segments	8,876		7,706

Goodwill	14,387		12,920
Other intangible assets, net	6,003		5,902
All other corporate assets	5,869		5,941
	$	35,136	$	32,469

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas


	As of December 31,
Long-lived assets	2023		2022
U.S.	$	1,300	$	1,241
Ireland	598		478
Costa Rica	373		246
Other countries	587		481
Property, plant and equipment, net	2,859		2,446
Goodwill	14,387		12,920
Other intangible assets, net	6,003		5,902
Operating lease right-of-use assets in Other long-term assets	439		386
	$	23,688	$	21,653