Segment And Geographic Information

9 Months Ended

Oct. 01, 2011

Segment And Geographic Information [Abstract]

Segment And Geographic Information

NOTE 14 – SEGMENT AND GEOGRAPHIC INFORMATION

Segment Information

The Company's four operating segments are Cardiac Rhythm Management (CRM), Cardiovascular (CV), Atrial Fibrillation (AF), and Neuromodulation (NMD). The primary products produced by each operating segment are: CRM – ICDs and pacemakers; CV – vascular products, which include vascular closure products, pressure measurement guidewires, optical coherence tomography (OCT) imaging products, vascular plugs and other vascular accessories, and structural heart products, which include heart valve replacement and repair products and structural heart defect devices; AF – EP introducers and catheters, advanced cardiac mapping, navigation and recording systems and ablation systems; and NMD – neurostimulation products, which include spinal cord and deep brain stimulation devices.

The Company has aggregated the four operating segments into two reportable segments based upon their similar operational and economic characteristics: CRM/NMD and CV/AF. Net sales of the Company's reportable segments include end-customer revenues from the sale of products they each develop and manufacture or distribute. The costs included in each of the reportable segments' operating results include the direct costs of the products sold to customers and operating expenses managed by each of the reportable segments. Certain operating expenses managed by the Company's selling and corporate functions, including all stock-based compensation expense, impairment charges, certain acquisition-related charges, IPR&D charges, excise tax expense and special charges have not been recorded in the individual reportable segments. As a result, reportable segment operating profit is not representative of the operating profit of the products in these reportable segments. Additionally, certain assets are managed by the Company's selling and corporate functions, principally including trade receivables, inventory, corporate cash and cash equivalents, certain marketable securities and deferred income taxes. For management reporting purposes, the Company does not compile capital expenditures by reportable segment; therefore, this information has not been presented, as it is impracticable to do so.

The following table presents net sales and operating profit by reportable segment (in thousands):

	CRM/NMD		CV/AF		Other			Total
Three Months ended October 1, 2011:
Net sales	$	852,774	$	529,784	$	—		$	1,382,558
Operating profit		522,465		281,041		(493,839	)		309,667
Three Months ended October 2, 2010:
Net sales	$	830,902	$	409,003	$	—		$	1,239,905
Operating profit		514,788		225,637		(441,441	)		298,984
Nine Months ended October 1, 2011:
Net sales	$	2,602,835	$	1,601,987	$	—		$	4,204,822
Operating profit		1,623,378		834,341		(1,500,950	)		956,769
Nine Months ended October 2, 2010:
Net sales	$	2,549,768	$	1,264,602	$	—		$	3,814,370
Operating profit		1,595,378		713,748		(1,299,382	)		1,009,744

The following table presents the Company's total assets by reportable segment (in thousands):

Total Assets	October 1, 2011		January 1, 2011
CRM/NMD	$	2,407,250	$	2,150,359
CV/AF		3,108,236		3,097,190
Other		3,586,625		3,318,899
	$	9,102,111	$	8,566,448

Geographic Information

The following table presents net sales by geographic location of the customer (in thousands):

	Three Months Ended				Nine Months Ended
Net Sales	October 1, 2011		October 2, 2010		October 1, 2011		October 2, 2010
United States	$	657,227	$	657,627	$	2,011,629	$	1,996,655
International
Europe		359,132		281,017		1,139,202		949,540
Japan		162,049		141,089		466,256		399,344
Asia Pacific		111,406		83,773		310,061		233,080
Other (a)		92,744		76,399		277,674		235,751
		725,331		582,278		2,193,193		1,817,715
	$	1,382,558	$	1,239,905	$	4,204,822	$	3,814,370

          (a) No one geographic market is greater than 5% of consolidated net sales.

The amounts for long-lived assets by significant geographic market include net property, plant and equipment by physical location of the asset as follows (in thousands):

Long-Lived Assets	October 1, 2011		January 1, 2011
United States	$	1,014,381	$	965,936
International
Europe		82,177		85,961
Japan		30,204		25,583
Asia Pacific		79,550		74,537
Other		184,933		171,914
		376,864		357,995
	$	1,391,245	$	1,323,931