Segment Reporting

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

Each of our reportable segments generates revenues from the sale of medical devices. As of December 31, 2012, 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 and 2010 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 consolidated statements of operations is as follows:

	Year Ended December 31,
(in millions)	2012		2011		2010
Net sales			(restated)		(restated)
United States	$	3,756	$	4,010	$	4,215
EMEA	1,708		1,756		1,776
Japan	827		842		863
Inter-Continental	836		751		687
Net sales allocated to reportable segments	7,127		7,359		7,541
Sales generated from business divestitures	122		140		346
Impact of foreign currency fluctuations	—		123		(81		)
	$	7,249	$	7,622	$	7,806

	Year Ended December 31,
(in millions)	2012		2011		2010
Depreciation expense			(restated)		(restated)
United States	$	73	$	85	$	96
EMEA	10		10		19
Japan	10		9		10
Inter-Continental	7		7		8
Depreciation expense allocated to reportable segments	100		111		133
Manufacturing operations	126		123		119
Corporate expenses and currency exchange	62		62		51
	$	288	$	296	$	303

* We have restated prior year regional detail to conform to current year presentation.

	Year Ended December 31,
(in millions)	2012			2011			2010
Income (loss) before income taxes				(restated)			(restated)
United States	$	541		$	616		$	729
EMEA	669			740			756
Japan	403			367			400
Inter-Continental	265			271			250
Operating income allocated to reportable segments	1,878			1,994			2,135
Manufacturing operations	(276		)	(264		)	(305		)
Corporate expenses and currency exchange	(242		)	(270		)	(269		)
Goodwill and intangible asset impairment charges and acquisition-, divestiture-, litigation-, and restructuring-related net charges	(4,833		)	(135		)	(1,704		)
Amortization expense	(395		)	(421		)	(513		)
Operating income (loss)	(3,868		)	904			(656		)
Other expense, net	(239		)	(262		)	(407		)
	$	(4,107	)	$	642		$	(1,063	)

	As of December 31,
(in millions)	2012		2011
Total assets			(restated)
United States	$	1,716	$	1,851
EMEA	922		989
Japan	213		243
Inter-Continental	543		477
Total assets allocated to reportable segments	3,394		3,560
Goodwill	5,973		9,761
Other intangible assets	6,289		6,473
All other corporate and manufacturing operations assets	1,498		1,496
	$	17,154	$	21,290

Enterprise-Wide Information (based on actual currency exchange rates)

	Year Ended December 31,
(in millions)	2012		2011		2010
Net sales
Interventional Cardiology	$	2,179	$	2,495	$	2,602
Cardiac Rhythm Management	1,908		2,087		2,180
Endoscopy	1,252		1,187		1,079
Peripheral Interventions	774		731		669
Urology/Women’s Health	500		498		481
Neuromodulation	367		336		304
Electrophysiology	147		147		147
	7,127		7,481		7,462
Sales generated from divested businesses	122		141		344
	$	7,249	$	7,622	$	7,806
United States	$	3,756	$	4,010	$	4,215
Japan	931		951		886
Other foreign countries	2,440		2,520		2,361
	7,127		7,481		7,462
Sales generated from divested businesses	122		141		344
	$	7,249	$	7,622	$	7,806

	As of December 31,
(in millions)	2012		2011		2010
Long-lived assets
United States	$	1,065	$	1,141	$	1,188
Ireland	252		231		219
Other foreign countries	247		298		290
Property, plant and equipment, net	1,564		1,670		1,697
Goodwill	5,973		9,761		10,186
Other intangible assets	6,289		6,473		6,343
	$	13,826	$	17,904	$	18,226