Segment And Geographic Information

3 Months Ended

Mar. 31, 2012

Segment And Geographic Information [Abstract]

Segment And Geographic Information

NOTE 13 – 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 – tachycardia implantable cardioverter defibrillator systems (ICDs) and bradycardia pacemaker systems (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 – electrophysiology (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, in-process research and development (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 millions):

	CRM/NMD		CV/AF		Other			Total
Three Months ended March 31, 2012:
Net sales	$	838	$	557	$	—		$	1,395
Operating profit		557		308		(563	)		302
Three Months ended April 2, 2011:
Net sales	$	854	$	522	$	—		$	1,376
Operating profit		536		264		(478	)		322

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

Total Assets	March 31, 2012		December 31, 2011
CRM/NMD	$	2,347	$	2,412
CV/AF		3,029		3,093
Other		3,800		3,500
	$	9,176	$	9,005

Geographic Information

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

	Three Months Ended
Net Sales	March 31, 2012		April 2, 2011
United States	$	665	$	676
International
Europe		374		369
Japan		165		148
Asia Pacific		105		93
Other		86		90
		730		700
	$	1,395	$	1,376

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 millions):

Long-Lived Assets	March 31, 2012		December 31, 2011
United States	$	1,011	$	1,007
International
Europe		100		84
Japan		31		31
Asia Pacific		83		81
Other		188		185
		402		381
	$	1,413	$	1,388