Segment and Geographic Data

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment and Geographic Data

SEGMENT AND GEOGRAPHIC DATA

In 2014 we changed the name of our Reconstructive business segment to Orthopaedics. The name change did not change the composition of any of our business segments and had no financial impact.

We segregate our operations into three reportable business segments: Orthopaedics, MedSurg, and Neurotechnology and Spine. The Orthopaedics segment includes reconstructive (hip and knee) and trauma implant systems as well as other related products. The MedSurg segment includes surgical equipment and surgical navigation systems (Instruments); endoscopic and communications systems (Endoscopy); patient handling and emergency medical equipment (Medical); and reprocessed and remanufactured medical devices (Sustainability) as well as other products.

The Neurotechnology and Spine segment includes neurovascular products, spinal implant systems and other related products. The Other category shown in the table below includes corporate and global operations administration, central research and development initiatives, interest expense, interest and marketable securities income and share-based compensation, which includes compensation related to both employee and director stock option, restricted stock unit and performance stock unit grants. Certain prior year amounts have been reclassified to conform with the current year presentation of our segments.

Results for our reportable segments were:

	2014			2013			2012
Orthopaedics	4,153			3,949			3,823
MedSurg	3,781			3,414			3,265
Neurotechnology & Spine	1,741			1,658			1,569
Net sales	$	9,675		$	9,021		$	8,657
Orthopaedics	319			273			271
MedSurg	113			84			85
Neurotechnology & Spine	134			135			122
Other	19			19			8
Depreciation and amortization	$	585		$	511		$	486
Orthopaedics	367			365			344
MedSurg	162			167			177
Neurotechnology & Spine	107			98			76
Other	(118		)	(127		)	(75		)
Income taxes (credit)	$	518		$	503		$	522
Orthopaedics	1,033			988			971
MedSurg	677			638			631
Neurotechnology & Spine	364			333			326
Other	(264		)	(245		)	(280		)
Segment net earnings (loss)	$	1,810		$	1,714		$	1,648
Less:
Acquisition & integration-related charges	(65		)	(72		)	(37		)
Amortization of intangible assets	(133		)	(98		)	(88		)
Restructuring related charges	(78		)	(46		)	(59		)
Rejuvenate and related charges	(628		)	(460		)	(133		)
Regulatory and legal matters	—			(63		)	(33		)
Donation	—			(15		)	—
Income tax related adjustments	(391		)	46			—
Net earnings	$	515		$	1,006		$	1,298

Total assets and capital spending by reportable segments were:

	2014			2013		2012
Orthopaedics	8,600			6,675		3,654
MedSurg	5,626			3,382		2,996
Neurotechnology & Spine	3,772			3,147		2,600
Other	(285		)	2,539		3,956
Total assets	$	17,713		$	15,743	$	13,206
Orthopaedics	80			89		87
MedSurg	77			59		51
Neurotechnology & Spine	20			16		53
Other	56			31		19
Capital spending	$	233		$	195	$	210

Our reportable segments are business units that offer different products and services and are managed separately because each business requires different manufacturing, technology and marketing strategies. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 to the Consolidated Financial Statements.

We measure the financial results of our reportable segments using an internal performance measure that excludes acquisition and integration-related charges, restructuring related charges, reserves for certain product recall matters, reserves for certain legal and regulatory matters, a donation to an educational institution, and certain income tax adjustments. Identifiable assets are those assets used exclusively in the operations of each business segment or allocated when used jointly. Corporate assets are principally cash and cash equivalents, marketable securities and property, plant and equipment.

The countries in which we have local revenue generating operations have been combined into the following geographic areas: the United States (including Puerto Rico); Europe, Middle East, Africa (EMEA); Asia Pacific; and other foreign countries, which include Canada and countries in the Latin American region. Sales are attributable to a geographic area based upon the customer’s country of domicile.

Net property, plant and equipment are based upon physical location of the assets. Geographic information follows: 

	Net Sales						Net Property, Plant & Equipment
	2014		2013		2012		2014		2013
United States	$	6,558	$	5,984	$	5,658	$	539	$	506
Europe, Middle East, Africa	1,371		1,316		1,266		417		446
Asia Pacific	1,368		1,319		1,336		119		122
Other foreign countries	378		402		397		23		7
	$	9,675	$	9,021	$	8,657	$	1,098	$	1,081