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Segment Reporting
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
Effective as of January 1, 2013, we reorganized our business from geographic regions to fully operationalized global business units. Following the reorganization, based on information regularly reviewed by our chief operating decision maker, we have three new reportable segments comprised of: Cardiovascular, Rhythm Management, and MedSurg. Our reportable segments represent an aggregate of operating segments. We have restated the prior period to conform to the current year presentation of our reportable segments.
Each of our reportable segments generates revenues from the sale of medical devices. We measure and evaluate our reportable segments based on segment net sales and operating income, excluding the impact of changes in foreign currency exchange rates and sales from divested businesses. Sales generated from reportable segments and divested businesses, as well as operating results of reportable segments and corporate expenses, are based on internally-derived standard currency exchange rates, which may differ from year to year, and do not include intersegment profits. We restated segment information for the prior period based on standard currency exchange rates used for the current period in order to remove the impact of foreign currency exchange fluctuations. Based on information regularly reviewed by our chief operating decision maker following our reorganization, we also restated certain expenses associated with our manufacturing and corporate operations. We exclude from segment operating income certain corporate-related expenses and 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; and amortization expense. 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.
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
September 30,
 
Nine Months Ended
September 30,
 
(in millions)
 
2013
 
2012*
 
2013
 
2012*
 
Net sales
 
 
 
 
 
 
 
 
 
   Interventional Cardiology
 
$
487

 
$
496

 
$
1,538

 
$
1,646

 
   Peripheral Interventions
 
202

 
188

 
601

 
571

 
Cardiovascular
 
689

 
684

 
2,139

 
2,217

 
 
 
 
 
 
 
 
 
 
 
   Cardiac Rhythm Management
 
474

 
467

 
1,445

 
1,466

 
   Electrophysiology
 
35

 
35

 
106

 
109

 
Rhythm Management
 
509

 
502

 
1,551

 
1,575

 
 
 
 
 
 
 
 
 
 
 
   Endoscopy
 
331

 
308

 
979

 
916

 
   Urology/Women's Health
 
134

 
124

 
378

 
367

 
   Neuromodulation
 
116

 
88

 
316

 
263

 
MedSurg
 
581

 
520

 
1,673

 
1,546

 
Net sales allocated to reportable segments
 
1,779

 
1,706

 
5,363

 
5,338

 
Sales generated from divested businesses
 
2

 
32

 
56

 
91

 
Impact of foreign currency fluctuations
 
(46
)
 
(3
)
 
(114
)
 
(1
)
 
 
 
$
1,735

 
$
1,735

 
$
5,305

 
$
5,428

 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
 
 
 
 
 
 
 
 
Cardiovascular
 
$
184

 
$
175

 
$
548

 
$
561

 
Rhythm Management
 
68

 
58

 
192

 
218

 
MedSurg
 
187

 
169

 
521

 
452

 
Operating income allocated to reportable segments
 
439

 
402

 
1,261

 
1,231

 
Corporate expenses and currency exchange
 
(103
)
 
(58
)
 
(251
)
 
(214
)
 
Goodwill and other intangible asset impairment charges; and acquisition-, divestiture-, restructuring-, and litigation related charges and credits
 
(132
)
 
(839
)
 
(711
)
 
(4,708
)
 
Amortization expense
 
(101
)
 
(99
)
 
(305
)
 
(294
)
 
Operating (loss) income
 
103

 
(594
)
 
(6
)
 
(3,985
)
 
Other expense, net
 
(143
)
 
(69
)
 
(276
)
 
(174
)
 
Income (loss) before income taxes
 
$
(40
)
 
$
(663
)
 
$
(282
)
 
$
(4,159
)
 

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