Segment Reporting

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

We have three reportable segments comprised of: Cardiovascular, Rhythm Management, and MedSurg, which represent an aggregation of our 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. As needed, 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 transactions or adjustments that our chief operating decision maker considers to be non-operational, such as amounts related to intangible asset impairment charges; acquisition-, divestiture-, litigation-, restructuring- and restructuring-related net 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 consolidated statements of operations is as follows:

	Year Ended December 31,
(in millions)	2016			2015			2014
Net sales
Interventional Cardiology	$	2,524		$	2,242		$	2,092
Peripheral Interventions	1,093			975			861
Cardiovascular	3,617			3,217			2,953
Cardiac Rhythm Management	1,994			1,934			1,922
Electrophysiology	261			248			228
Rhythm Management	2,255			2,182			2,150
Endoscopy	1,565			1,422			1,343
Urology and Pelvic Health	1,065			735			542
Neuromodulation	574			512			474
MedSurg	3,204			2,669			2,359
Net sales allocated to reportable segments	9,076			8,068			7,462
Sales generated from business divestitures	—			—			4
Impact of foreign currency fluctuations	(690		)	(591		)	(86		)
	$	8,386		$	7,477		$	7,380

	Year Ended December 31,
(in millions)	2016			2015			2014
Depreciation expense
Cardiovascular	$	122		$	116		$	120
Rhythm Management	83			94			92
MedSurg	74			73			75
Depreciation expense allocated to reportable segments	279			283			287
Impact of foreign currency fluctuations	(9		)	(9		)	—
	$	270		$	274		$	287

	Year Ended December 31,
(in millions)	2016			2015			2014
Income (loss) before income taxes
Cardiovascular	$	1,137		$	972		$	767
Rhythm Management	404			328			289
MedSurg	1,045			856			746
Operating income allocated to reportable segments	2,586			2,156			1,802
Corporate expenses and currency exchange	(565		)	(486		)	(308		)
Intangible asset impairment charges; pension termination charges; and acquisition- and divestiture-related net charges, litigation-related net charges, and restructuring- and restructuring-related net charges	(1,029		)	(1,502		)	(1,357		)
Amortization expense	(545		)	(495		)	(438		)
Operating income (loss)	447			(327		)	(301		)
Other expense, net	(270		)	(323		)	(208		)
	$	177		$	(650	)	$	(509	)

	As of December 31,
(in millions)	2016		2015
Total assets
Cardiovascular	$	1,748	$	1,583
Rhythm Management	1,250		1,279
MedSurg	1,499		1,141
Total assets allocated to reportable segments	4,497		4,003
Goodwill	6,678		6,473
Other intangible assets, net	5,883		6,194
All other corporate assets	1,038		1,463
	$	18,096	$	18,133

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

	Year Ended December 31,
(in millions)	2016		2015		2014
Net sales
Interventional Cardiology	$	2,281	$	2,033	$	2,057
Cardiac Rhythm Management	1,850		1,807		1,912
Endoscopy	1,440		1,306		1,323
Peripheral Interventions	1,011		904		850
Urology and Pelvic Health	1,005		693		535
Neuromodulation	556		501		472
Electrophysiology	243		233		227
	8,386		7,477		7,376
Sales generated from divested businesses	—		—		4
	$	8,386	$	7,477	$	7,380
United States	$	4,759	$	4,229	$	3,885
Japan	750		602		678
Other countries	2,877		2,646		2,813
	8,386		7,477		7,376
Sales generated from divested businesses	—		—		4
	$	8,386	$	7,477	$	7,380

	As of December 31,
(in millions)	2016		2015		2014
Long-lived assets
United States	$	1,082	$	1,018	$	1,002
Ireland	181		170		197
Other foreign countries	367		302		308
Property, plant and equipment, net	1,630		1,490		1,507
Goodwill	6,678		6,473		5,898
Other intangible assets, net	5,883		6,194		5,606
	$	14,191	$	14,157	$	13,011