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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
Reportable Segments
The Company has two operating and reportable segments: (i) Developed Markets and (ii) Emerging Markets. The following is a brief description of the Company’s segments:
•
Developed Markets consists of (i) sales in the U.S. of pharmaceutical products, OTC products, and medical device products, as well as alliance and contract service revenues, in the areas of dermatology and podiatry, neurology, gastrointestinal disorders, eye health, oncology and urology, dentistry, and aesthetics, and (ii) pharmaceutical products, OTC products, and medical device products sold in Western Europe, Canada, Japan, Australia and New Zealand.
•
Emerging Markets consists of branded generic pharmaceutical products and branded pharmaceuticals, OTC products, and medical device products. Products are sold primarily in Central and Eastern Europe (primarily Poland and Russia), Asia, Latin America (Mexico, Brazil, and Argentina and exports out of Mexico to other Latin American markets), Africa and the Middle East.
Segment profit is based on operating income after the elimination of intercompany transactions. Certain costs, such as restructuring and acquisition-related costs, other expense (income), and in-process research and development impairments and other charges, are not included in the measure of segment profit, as management excludes these items in assessing financial performance.
Corporate includes the finance, treasury, tax and legal operations of the Company’s businesses and maintains and/or incurs certain assets, liabilities, expenses, gains and losses related to the overall management of the Company, which are not allocated to the other business segments. In addition, a portion of share-based compensation is considered a corporate cost, since the amount of such expense depends on Company-wide performance rather than the operating performance of any single segment.
Segment Revenues and Profit
Segment revenues and profit for the three-month and six-month periods ended June 30, 2015 and 2014 were as follows:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Revenues:
 
 
 
 
 
 
 
Developed Markets(1)
$
2,237.6

 
$
1,479.7

 
$
4,002.0

 
$
2,901.5

Emerging Markets(2)
494.8

 
561.4

 
921.3

 
1,025.8

Total revenues
2,732.4

 
2,041.1

 
4,923.3

 
3,927.3

 
 
 
 
 
 
 
 
Segment profit:
 
 
 
 
 
 
 
Developed Markets(3)
678.5

 
458.0

 
1,314.5

 
897.3

Emerging Markets(4)
78.3

 
96.0

 
132.9

 
164.1

Total segment profit
756.8

 
554.0

 
1,447.4

 
1,061.4

 
 
 
 
 
 
 
 
Corporate(5)
(61.5
)
 
(46.3
)
 
(130.7
)
 
(84.4
)
Restructuring, integration and other costs
(143.4
)
 
(142.1
)
 
(198.4
)
 
(275.7
)
In-process research and development impairments and other charges
(12.3
)
 
(8.4
)
 
(12.3
)
 
(20.4
)
Acquisition-related costs
(9.5
)
 
(0.6
)
 
(19.3
)
 
(2.1
)
Acquisition-related contingent consideration
(11.7
)
 
(1.9
)
 
(18.8
)
 
(10.8
)
Other (expense) income
(176.9
)
 
0.4

 
(183.0
)
 
43.7

Operating income
341.5

 
355.1

 
884.9

 
711.7

Interest income
0.9

 
1.2

 
1.8

 
3.0

Interest expense
(412.7
)
 
(241.2
)
 
(710.5
)
 
(487.7
)
Loss on extinguishment of debt
—

 
—

 
(20.0
)
 
(93.7
)
Foreign exchange and other
5.6

 
3.4

 
(65.5
)
 
(10.0
)
Gain on investments, net
—

 
2.5

 
—

 
2.5

(Loss) income before (recovery of) provision for income taxes
$
(64.7
)
 
$
121.0

 
$
90.7

 
$
125.8

____________________________________
(1)
Developed Markets segment revenues reflect incremental product sales revenue in the three-month and six-month periods ended June 30, 2015 from 2014 and 2015 acquisitions of $546 million and $754 million, respectively, in the aggregate, primarily from the Salix, Marathon, and Dendreon acquisitions.
(2)
Emerging Markets segment revenues reflect incremental product sales revenue in the three-month and six-month periods ended June 30, 2015 from 2014 and 2015 acquisitions of $13 million and $25 million, respectively, in the aggregate.
(3)
Developed Markets segment profit in the three-month and six-month periods ended June 30, 2015 reflects the impact of acquisition accounting adjustments related to the fair value adjustments to inventory and identifiable intangible assets of $555 million and $870 million, in the aggregate, primarily from the Salix acquisition, compared with $216 million and $441 million in the corresponding periods of 2014.
(4)
Emerging Markets segment profit in the three-month and six-month periods ended June 30, 2015 reflects the impact of acquisition accounting adjustments related to the fair value adjustments to inventory and identifiable intangible assets of $76 million and $151 million, in the aggregate, compared with $79 million and $154 million in the corresponding periods of 2014.
(5)
Corporate reflects non-restructuring-related share-based compensation expense of $14 million and $38 million in the three-month and six-month periods ended June 30, 2015, respectively, compared with $6 million and $21 million in the corresponding periods of 2014.
Segment Assets
Total assets by segment as of June 30, 2015 and December 31, 2014 were as follows:
 
As of
June 30,
2015
 
As of
December 31,
2014
Assets:
 
 
 
Developed Markets(1)
$
40,368.4

 
$
19,093.4

Emerging Markets(1)
6,126.2

 
6,332.9

 
46,494.6

 
25,426.3

Corporate
1,848.6

 
901.0

Total assets
$
48,343.2

 
$
26,327.3

____________________________________
(1)
Segment assets as of June 30, 2015 were impacted by the provisional amounts of identifiable intangible assets and goodwill of the various acquisitions in the current year. See Note 3 for additional information regarding the current year acquisitions.