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Segment Reporting
 9 Months Ended
Sep. 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. In addition, we realigned certain product lines from Endoscopy to Peripheral Interventions as of January 1, 2014, which did not have a material impact on the restated information. 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
September 30,
 
Nine Months Ended
September 30,
(in millions)
 
2014
 
2013
 
2014
 
2013
 
 
 
 
(restated)
 
 
 
(restated)
Net sales
 
 
 
 
 
 
 
 
   Interventional Cardiology
 
$
514

 
$
474

 
$
1,543

 
$
1,493

   Peripheral Interventions
 
217

 
200

 
631

 
597

Cardiovascular
 
731

 
674

 
2,174

 
2,090

 
 
 
 
 
 
 
 
 
   Cardiac Rhythm Management
 
482

 
465

 
1,441

 
1,416

   Electrophysiology
 
54

 
35

 
167

 
105

Rhythm Management
 
536

 
500

 
1,608

 
1,521

 
 
 
 
 
 
 
 
 
   Endoscopy
 
340

 
319

 
990

 
939

   Urology and Women's Health
 
138

 
131

 
397

 
372

   Neuromodulation
 
115

 
116

 
338

 
316

MedSurg
 
593

 
566

 
1,725

 
1,627

Net sales allocated to reportable segments
 
1,860

 
1,740

 
5,507

 
5,238

Sales generated from divested businesses
 
1

 
2

 
4

 
57

Impact of foreign currency fluctuations
 
(15
)
 
(7
)
 
(18
)
 
10

 
 
$
1,846

 
$
1,735

 
$
5,493

 
$
5,305

 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
 
 
 
 
 
 
 
Cardiovascular
 
$
201

 
$
175

 
$
565

 
$
515

Rhythm Management
 
76

 
63

 
209

 
176

MedSurg
 
192

 
176

 
535

 
487

Operating income allocated to reportable segments
 
469

 
414

 
1,309

 
1,178

Corporate expenses and currency exchange
 
(90
)
 
(78
)
 
(205
)
 
(168
)
Goodwill and other intangible asset impairment charges; and acquisition-, divestiture-, restructuring-, and litigation related charges or credits
 
(206
)
 
(132
)
 
(586
)
 
(711
)
Amortization expense
 
(109
)
 
(101
)
 
(327
)
 
(305
)
Operating income (loss)
 
64

 
103

 
191

 
(6
)
Other expense, net
 
(61
)
 
(143
)
 
(146
)
 
(276
)
Income (loss) before income taxes
 
$
3

 
$
(40
)
 
$
45

 
$
(282
)