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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 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, aesthetics, and women's health 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, Argentina, and Colombia 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 years ended December 31, 2015, 2014 and 2013 were as follows:
 
 
2015
 
2014
(Restated)
 
2013
Revenues:
 
 
 
 
 
 
Developed Markets(1)
 
$
8,537.3

 
$
6,109.6

 
$
4,293.2

Emerging Markets(2)
 
1,909.2

 
2,096.4

 
1,476.4

Total revenues
 
10,446.5

 
8,206.0

 
5,769.6

Segment profit:
 
 
 
 
 
 
Developed Markets(3)
 
2,463.8

 
1,980.7

 
573.2

Emerging Markets(4)
 
238.5

 
337.3

 
93.0

Total segment profit
 
2,702.3

 
2,318.0

 
666.2

Corporate(5)
 
(293.0
)
 
(171.1
)
 
(165.7
)
Restructuring, integration and other costs
 
(361.9
)
 
(381.7
)
 
(462.0
)
In-process research and development impairments and other charges
 
(248.4
)
 
(41.0
)
 
(153.6
)
Acquisition-related costs
 
(38.5
)
 
(6.3
)
 
(36.4
)
Acquisition-related contingent consideration
 
23.0

 
14.1

 
29.2

Other (expense) income
 
(256.1
)
 
268.7

 
(287.2
)
Operating income (loss)
 
1,527.4

 
2,000.7

 
(409.5
)
Interest income
 
3.3

 
5.0

 
8.0

Interest expense
 
(1,563.2
)
 
(971.0
)
 
(844.3
)
Loss on extinguishment of debt
 
(20.0
)
 
(129.6
)
 
(65.0
)
Foreign exchange and other
 
(102.8
)
 
(144.1
)
 
(9.4
)
Gain on investments, net
 
—

 
292.6

 
5.8

(Loss) Income before provision for (recovery of) income taxes
 
$
(155.3
)
 
$
1,053.6

 
$
(1,314.4
)
____________________________________
(1)
Developed Markets segment revenues reflect (i) incremental product sales revenue in 2015 from 2014 and 2015 acquisitions of $2.12 billion, in the aggregate, primarily from the Salix Acquisition and the acquisitions of certain assets of both Marathon and Dendreon and (ii) incremental product sales revenue in 2014 from 2013 and 2014 acquisitions of $1.70 billion, in the aggregate, primarily from the 2013 acquisition of B&L and the 2014 acquisition of Solta Medical and PreCision.
(2)
Emerging Markets segment revenues reflect (i) incremental product sales revenue in 2015 from 2014 and 2015 acquisitions of $92 million, in the aggregate, primarily from 2014 and 2015 acquisitions and (ii) incremental product sales revenue in 2014 from 2013 and 2014 acquisitions of $581 million, in the aggregate, primarily from the 2013 acquisition of B&L and the 2014 acquisition of Solta Medical.
(3)
Developed Markets segment profit in 2015, 2014 and 2013 reflects the impact of acquisition accounting adjustments related to the fair value adjustments to inventory and identifiable intangible assets as follows: (i) $2.22 billion in 2015, in the aggregate, primarily from the Salix Acquisition, (ii) $906 million in 2014, in the aggregate, and (iii) $1.08 billion in 2013, in the aggregate.
Developed Markets segment profit in 2013 also reflects an impairment charge of $552 million related to ezogabine/retigabine in the third quarter of 2013 (see Note 7 for further information).
(4)
Emerging Markets segment profit in 2015, 2014 and 2013 reflects the impact of acquisition accounting adjustments related to the fair value adjustments to inventory and identifiable intangible assets as follows: (i) $323 million in 2015, in the aggregate, (ii) $324 million in 2014, in the aggregate, and (iii) $321 million in 2013, in the aggregate.
(5)
Corporate reflects non-restructuring-related share-based compensation expense of $95 million, $40 million and $46 million in 2015, 2014 and 2013, respectively.
Segment Assets
Total assets by segment as of December 31, 2015, 2014 and 2013 were as follows:
 
 
2015
 
2014(1)
(Restated)
 
2013(1)
Assets:
 
 
 
 
 
 
Developed Markets(2)
 
$
41,182.7

 
$
19,070.8

 
$
20,007.2

Emerging Markets(2)
 
6,897.4

 
6,332.9

 
6,907.8

 
 
48,080.1

 
25,403.7

 
26,915.0

Corporate
 
884.4

 
901.0

 
1,017.9

Total assets
 
$
48,964.5

 
$
26,304.7

 
$
27,932.9

____________________________________
(1)
As described in Note 3, the Company adopted guidance issued by the FASB retrospectively (impacted presentation only) resulting in reclassifications between assets and long-term debt which did not have a material impact on the Company's financial statements.
(2)
Segment assets as of December 31, 2015 were impacted by the identifiable intangible assets and goodwill from the various acquisitions in the current year. See Note 4 for additional information regarding the current year acquisitions.
Capital Expenditures, and Depreciation and Amortization, including Impairments of Finite-Lived Intangible Assets
Capital expenditures, and depreciation and amortization, including impairments of finite-lived intangible assets by segment for the years ended December 31, 2015, 2014 and 2013 were as follows:
 
 
2015

2014

2013
Capital expenditures:
 
 
 
 
 
 
Developed Markets
 
$
190.7

 
$
152.7

 
$
54.1

Emerging Markets
 
26.9

 
29.3

 
51.9

 
 
217.6

 
182.0

 
106.0

Corporate
 
17.6

 
109.6

 
9.3

Total capital expenditures
 
$
235.2

 
$
291.6

 
$
115.3

Depreciation and amortization, including impairments of finite-lived intangible assets(1):
 
 
 
 
 
 
Developed Markets
 
$
2,245.9

 
$
1,336.9

 
$
1,687.7

Emerging Markets
 
354.7

 
385.7

 
313.7

 
 
2,600.6

 
1,722.6

 
2,001.4

Corporate
 
26.9

 
15.0

 
14.4

Total depreciation and amortization, including impairments of finite-lived intangible assets
 
$
2,627.5

 
$
1,737.6

 
$
2,015.8

____________________________________
(1)
Depreciation and amortization, including impairments of finite-lived intangible assets in 2015, 2014 and 2013 reflects the impact of acquisition accounting adjustments related to the fair value adjustments to identifiable intangible assets.
For more information regarding business combinations and asset impairment charges and write-offs, see Note 4, Note 7 and Note 11.
Revenues by Product Category
Revenues by product category for the years ended December 31, 2015, 2014 and 2013 were as follows:
 
 
2015
 
2014
(Restated)
 
2013
Pharmaceuticals
 
$
6,094.3

 
$
3,445.3

 
$
2,677.6

Devices
 
1,494.6

 
1,629.4

 
845.3

OTC
 
1,582.9

 
1,711.4

 
1,086.6

Branded and Other Generics
 
1,120.4

 
1,260.0

 
1,030.8

Other revenues
 
154.3

 
159.9

 
129.3

 
 
$
10,446.5

 
$
8,206.0

 
$
5,769.6


Geographic Information
Revenues by geographic region for the years ended December 31, 2015, 2014 and 2013 were as follows:
 
 
Revenues(1)
 
 
2015
 
2014
(Restated)
 
2013
U.S. and Puerto Rico
 
$
7,063.0

 
$
4,415.5

 
$
3,194.5

Canada
 
333.6

 
375.1

 
387.4

China
 
271.5

 
232.0

 
91.0

Poland
 
213.5

 
276.2

 
268.8

Japan
 
206.4

 
248.7

 
104.9

Mexico
 
203.9

 
221.6

 
200.9

Australia
 
182.3

 
196.3

 
178.2

France
 
178.3

 
204.7

 
86.9

Russia
 
168.9

 
275.1

 
202.8

Germany
 
159.4

 
204.4

 
130.9

Brazil
 
110.2

 
161.0

 
155.6

U.K.
 
105.1

 
114.2

 
47.0

Other (2)
 
1,250.4

 
1,281.2

 
720.7

 
 
$
10,446.5

 
$
8,206.0

 
$
5,769.6

____________________________________
(1)
Revenues are attributed to countries based on the location of the customer.
(2)
Other consists primarily of countries in Europe, Asia, Africa, the Middle East, and Latin America.
Long-lived assets by geographic region as of December 31, 2015, 2014 and 2013 were as follows:
 
 
Long-Lived Assets(1)
 
 
2015
 
2014
(Restated)
 
2013
U.S. and Puerto Rico
 
$
824.3

 
$
720.0

 
$
592.0

Egypt(2)
 
97.3

 
—

 
—

Poland
 
88.6

 
99.4

 
110.0

Canada
 
75.6

 
83.7

 
87.7

Germany
 
62.6

 
73.5

 
83.8

Mexico
 
62.3

 
73.8

 
82.5

China
 
32.7

 
39.6

 
44.3

France
 
29.9

 
36.0

 
40.5

Serbia
 
27.3

 
31.8

 
40.0

Italy
 
20.7

 
23.1

 
25.3

Brazil
 
20.4

 
31.4

 
41.4

Other (3)
 
100.1

 
100.0

 
86.7

 
 
$
1,441.8

 
$
1,312.3

 
$
1,234.2

____________________________________
(1)
Long-lived assets consist of property, plant and equipment, net of accumulated depreciation, which is attributed to countries based on the physical location of the assets.
(2)
Relates to the Amoun Acquisition, described further in Note 4.
(3)
Other consists primarily of countries in Europe, Asia, Latin America, and the Middle East.
Major Customers
External customers that accounted for 10% or more of the Company’s total revenues for the years ended December 31, 2015, 2014 and 2013 were as follows:


2015

2014

2013
McKesson Corporation

20%

17%

19%
AmerisourceBergen Corporation

14%

10%

7%
Cardinal Health, Inc.

12%

9%

13%