Segment Reporting

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

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 restate 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. 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; pension termination charges; 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 March 31,
(in millions)	2015			2014
Net sales
Interventional Cardiology	$	541		$	501
Peripheral Interventions	232			204
Cardiovascular	773			705
Cardiac Rhythm Management	483			464
Electrophysiology	61			58
Rhythm Management	544			522
Endoscopy	328			316
Urology and Women's Health	130			126
Neuromodulation	116			109
MedSurg	574			551
Net sales allocated to reportable segments	1,891			1,778
Sales generated from divested businesses	—			2
Impact of foreign currency fluctuations	(123		)	(6		)
	$	1,768		$	1,774
Income (loss) before income taxes
Cardiovascular	$	236		$	171
Rhythm Management	78			66
MedSurg	166			168
Operating income allocated to reportable segments	480			405
Corporate expenses and currency exchange	(82		)	(50		)
Goodwill and other intangible asset impairment charges; and acquisition-, divestiture-, restructuring-, litigation related charges or credits, and pension termination charges	(261		)	(49		)
Amortization expense	(113		)	(109		)
Operating income (loss)	24			197
Other expense, net	(75		)	(51		)
Income (loss) before income taxes	$	(51	)	$	146