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Segment Reporting
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING
NOTE K – SEGMENT REPORTING

We aggregate our core businesses into two reportable segments: MedSurg and Cardiovascular, each of which generates revenues from the sale of medical devices. In accordance with FASB ASC Topic 280, Segment Reporting, we identified our reportable segments based on the nature of our products, production processes, type of customer, selling and distribution methods and regulatory environment, as well as the economic characteristics of each of our operating segments.

We measure and evaluate our reportable segments based on their respective net sales, operating income, excluding intersegment profits, and operating income as a percentage of net sales, all based on internally-derived standard currency exchange rates to exclude the impact of foreign currency, which may be updated from year to year. We exclude from operating income of reportable segments certain corporate-related expenses and certain transactions or adjustments that our chief operating decision maker (CODM) considers to be non-operational, such as amounts related to amortization expense, goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and restructuring-related net charges (credits), and certain litigation-related net charges (credits) and European Union (EU) Medical Device Regulation (MDR) implementation costs. Although we exclude these amounts from operating income of reportable segments, they are included in reported Income (loss) before income taxes within our accompanying unaudited consolidated statements of operations and are included in the reconciliation below. Refer to Note L – Revenue for net sales by reportable segment presented in accordance with GAAP.
A reconciliation of the totals reported for the reportable segments to the applicable line items within our accompanying unaudited consolidated statements of operations is as follows (in millions, except percentages). Prior period amounts have been restated at constant currency to conform to current year presentation.

Three Months Ended
September 30,		Nine Months Ended
September 30,
Net Sales2024202320242023
MedSurg$1,470 $1,332$4,352 $3,943
Cardiovascular2,709 2,1677,767 6,442
Total net sales of reportable segments4,179 3,49812,118 10,385
Impact of foreign currency fluctuations30 2868 130
$4,209 $3,527$12,186 $10,515
Income (loss) before income taxes
MedSurg$509 $455$1,494 $1,322
Cardiovascular842 5792,256 1,714
Total operating income of reportable segments1,350 1,0343,750 3,036
Unallocated amounts:
Corporate expenses, including hedging activities and impact of foreign currency fluctuations on operating income of reportable segments(203)(115)(472)(288)
Goodwill and other 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(209)(19)(719)(370)
Amortization expense(205)(208)(631)(620)
Operating income (loss)733 6931,928 1,759
Other income (expense), net(65)(83)(231)(279)
Income (loss) before income taxes$669 $610$1,697 $1,480

Three Months Ended September 30,Nine Months Ended
September 30,
Operating income margin of reportable segments2024202320242023
MedSurg34.6 %34.2 %34.3 %33.5 %
Cardiovascular31.1 %26.7 %29.0 %26.6 %