Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

Each of our reportable segments generates revenues from the sale of medical devices. As of June 30, 2012 and December 31, 2011, we had four reportable segments based on geographic regions: the United States; EMEA, consisting of Europe, the Middle East and Africa; Japan; and Inter-Continental, consisting of our Asia Pacific and the Americas operating segments, which include the emerging markets of Brazil, China and India. The reportable segments represent an aggregate of all operating divisions within each segment. We measure and evaluate our reportable segments based on segment net sales and operating income. We exclude from segment operating income certain corporate and manufacturing-related expenses, as our corporate and manufacturing functions do not meet the definition of a segment, as defined by ASC Topic 280, Segment Reporting. In addition, certain transactions or adjustments that our chief operating decision maker considers to be non-recurring and/or non-operational, such as amounts related to goodwill and other intangible asset impairment charges; acquisition-, divestiture-, restructuring- and litigation-related charges and credits; as well as amortization expense, are excluded from segment operating income. Although we exclude these amounts from segment operating income, they are included in reported consolidated operating income (loss) and are included in the reconciliation below.

We manage our international operating segments on a constant currency basis. Sales generated from reportable segments and divested businesses, as well as operating results of reportable segments and expenses from manufacturing operations, are based on internally-derived standard currency exchange rates, which may differ from year to year, and do not include intersegment profits. We have restated the segment information for 2011 net sales and operating results based on standard currency exchange rates used for 2012 in order to remove the impact of currency fluctuations. Because of the interdependence of the reportable segments, the operating profit as presented may not be representative of the geographic distribution that would occur if the segments were not interdependent. A reconciliation of the totals reported for the reportable segments to the applicable line items in our accompanying unaudited condensed consolidated statements of operations is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2012			2011			2012			2011
Net sales				(restated)						(restated)
United States	$	947		$	1,040		$	1,926		$	2,063
EMEA	440			448			887			911
Japan	209			213			420			427
Inter-Continental	208			188			399			362
Net sales allocated to reportable segments	1,804			1,889			3,632			3,763
Sales generated from divested businesses	31			42			59			78
Impact of foreign currency fluctuations	(7		)	44			3			59
	$	1,828		$	1,975		$	3,694		$	3,900
(Loss) income before income taxes
United States	$	162		$	157		$	307		$	373
EMEA	179			185			346			389
Japan	105			99			205			199
Inter-Continental	65			66			125			128
Operating income allocated to reportable segments	511			507			983			1,089
Manufacturing operations	(94		)	(71		)	(163		)	(138		)
Corporate expenses and currency exchange	(66		)	(53		)	(145		)	(116		)
Goodwill and other intangible asset impairment charges; and acquisition-, divestiture-, restructuring-, and litigation-related net (charges) credits	(3,839		)	(50		)	(3,870		)	(47		)
Amortization expense	(99		)	(96		)	(195		)	(228		)
	(3,587		)	237			(3,390		)	560
Other expense, net	(31		)	(79		)	(105		)	(129		)
	$	(3,618	)	$	158		$	(3,495	)	$	431