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Segment Reporting
 6 Months Ended
Jun. 30, 2014
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 reportable segments comprised of: Cardiovascular, Rhythm Management, and MedSurg. Our reportable segments represent an aggregate of operating 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 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 our internally-derived standard currency exchange rates used for the current period in order to remove the impact of foreign currency exchange fluctuation and for the realignment of certain product lines from Endoscopy to Peripheral Interventions as of January 1, 2014. We exclude from segment operating income certain corporate-related expenses and certain charges or credits 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
June 30,
 
Six Months Ended
June 30,
(in millions)
 
2014
 
2013
 
2014
 
2013
 
 
 
 
(restated)
 
 
 
(restated)
Net sales
 
 
 
 
 
 
 
 
   Interventional Cardiology
 
$
528

 
$
521

 
$
1,029

 
$
1,019

   Peripheral Interventions
 
210

 
204

 
414

 
397

Cardiovascular
 
738

 
725

 
1,443

 
1,416

 
 
 
 
 
 
 
 
 
   Cardiac Rhythm Management
 
495

 
476

 
959

 
951

   Electrophysiology
 
55

 
36

 
113

 
70

Rhythm Management
 
550

 
512

 
1,072

 
1,021

 
 
 
 
 
 
 
 
 
   Endoscopy
 
334

 
320

 
650

 
620

   Urology and Women's Health
 
133

 
124

 
259

 
241

   Neuromodulation
 
114

 
111

 
223

 
200

MedSurg
 
581

 
555

 
1,132

 
1,061

Net sales allocated to reportable segments
 
1,869

 
1,792

 
3,647

 
3,498

Sales generated from divested businesses
 
1

 
19

 
3

 
55

Impact of foreign currency fluctuations
 
3

 
(2
)
 
(3
)
 
17

 
 
$
1,873

 
$
1,809

 
$
3,647

 
$
3,570

 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
 
 
 
 
 
 
 
Cardiovascular
 
$
193

 
$
182

 
$
364

 
$
340

Rhythm Management
 
67

 
56

 
133

 
113

MedSurg
 
175

 
171

 
343

 
311

Operating income allocated to reportable segments
 
435

 
409

 
840

 
764

Corporate expenses and currency exchange
 
(64
)
 
(48
)
 
(115
)
 
(89
)
Goodwill and other intangible asset impairment charges; and acquisition-, divestiture-, restructuring-, and litigation related charges or credits
 
(331
)
 
(40
)
 
(379
)
 
(580
)
Amortization expense
 
(109
)
 
(101
)
 
(218
)
 
(204
)
Operating income (loss)
 
(69
)
 
220

 
128

 
(109
)
Other expense, net
 
(35
)
 
(68
)
 
(86
)
 
(133
)
Income (loss) before income taxes
 
$
(104
)
 
$
152

 
$
42

 
$
(242
)