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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION

The Company conducts operations worldwide and is managed in the following geographical regions: United States, Europe, Japan, and Rest of World. All regions sell products that are used to treat advanced cardiovascular disease.

The Company's geographic segments are reported based on the financial information provided to the Chief Operating Decision Maker (the Chief Executive Officer). The Company evaluates the performance of its geographic segments based on net sales and operating income. The accounting policies of the segments are substantially the same as those described in Note 2. Segment net sales and segment operating income are based on internally derived standard foreign exchange rates, which may differ from year to year, and do not include inter-segment profits. Because of the interdependence of the reportable segments, the operating profit as presented may not be representative of the geographical distribution that would occur if the segments were not interdependent. Net sales by geographic area are based on the location of the customer.

Certain items are maintained at the corporate level and are not allocated to the segments. The non-allocated items include net interest expense, global marketing expenses, corporate research and development expenses, manufacturing variances, corporate headquarters costs, special gains and charges, stock-based compensation, foreign currency hedging activities, certain litigation costs, changes in the fair value of contingent consideration liabilities, and most of the Company's amortization expense. Although most of the Company's depreciation expense is included in segment operating income, due to the Company's methodology for cost build-up, it is impractical to determine the amount of depreciation expense included in each segment, and, therefore, a portion is maintained at the corporate level. The Company neither discretely allocates assets to its operating segments, nor evaluates the operating segments using discrete asset information.

The table below presents information about Edwards Lifesciences' reportable segments (in millions):
 
Years Ended December 31,
 
2019
 
2018
 
2017
Segment Net Sales
 

 
 

 
 

United States
$
2,532.7

 
$
2,055.2

 
$
1,907.6

Europe
926.1

 
826.4

 
800.7

Japan
441.4

 
398.4

 
356.5

Rest of World
433.3

 
396.0

 
357.3

Total segment net sales
$
4,333.5

 
$
3,676.0

 
$
3,422.1

Segment Operating Income
 

 
 

 
 
United States
$
1,742.3

 
$
1,368.1

 
$
1,242.3

Europe
472.0

 
394.8

 
378.4

Japan
272.3

 
237.0

 
201.1

Rest of World
127.9

 
115.6

 
92.8

Total segment operating income
$
2,614.5

 
$
2,115.5

 
$
1,914.6



The table below presents reconciliations of segment net sales to consolidated net sales and segment operating income to consolidated income before provision for income taxes ("pre-tax income") (in millions):
 
Years Ended December 31,
 
2019
 
2018
 
2017
Net Sales Reconciliation
 

 
 

 
 

Segment net sales
$
4,333.5

 
$
3,676.0

 
$
3,422.1

Foreign currency
14.5

 
46.8

 
13.2

Consolidated net sales
$
4,348.0

 
$
3,722.8

 
$
3,435.3

Pre-tax Income Reconciliation
 

 
 

 
 
Segment operating income
$
2,614.5

 
$
2,115.5

 
$
1,914.6

Unallocated amounts:
 
 
 
 
 
Corporate items
(1,439.7
)
 
(1,058.1
)
 
(903.5
)
Special charges, net
(64.6
)
 
(116.2
)
 
(9.7
)
Intellectual property litigation (expenses) income, net
(33.4
)
 
(214.0
)
 
73.3

Change in fair value of contingent consideration liabilities, net
6.1

 
5.7

 
9.9

Foreign currency
63.9

 
15.3

 
4.8

Consolidated operating income
1,146.8

 
748.2

 
1,089.4

Non-operating income (expense)
19.7

 
13.2

 
(54.5
)
Consolidated pre-tax income
$
1,166.5

 
$
761.4

 
$
1,034.9


Enterprise-Wide Information

Enterprise-wide information is based on actual foreign exchange rates used in the Company's consolidated financial statements.

 
As of or for the Years Ended
December 31,
 
2019
 
2018
 
2017
 
(in millions)
Net Sales by Geographic Area
 

 
 

 
 

United States
$
2,532.7

 
$
2,055.3

 
$
1,907.6

Europe
941.2

 
885.1

 
831.0

Japan
444.7

 
396.8

 
350.3

Rest of World
429.4

 
385.6

 
346.4

 
$
4,348.0

 
$
3,722.8

 
$
3,435.3

Net Sales by Major Product Area
 

 
 

 
 
Transcatheter Aortic Valve Replacement
$
2,737.9

 
$
2,283.8

 
$
2,023.8

Transcatheter Mitral and Tricuspid Therapies
28.2

 
2.9

 
3.4

Surgical Structural Heart
841.7

 
761.6

 
807.1

Critical Care
740.2

 
674.5

 
601.0

 
$
4,348.0

 
$
3,722.8

 
$
3,435.3

Long-lived Tangible Assets by Geographic Area
 

 
 

 
 

United States
$
849.1

 
$
642.1

 
$
608.7

Europe
101.5

 
36.6

 
28.4

Japan
21.7

 
6.7

 
7.6

Rest of World
269.4

 
214.4

 
139.7

 
$
1,241.7

 
$
899.8

 
$
784.4