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Segment Reporting
 6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
SEGMENT REPORTING
NOTE K – 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 revenue 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. Sales generated from reportable segments, as well as operating results of reportable segments and corporate expenses, are calculated 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 as of January 1, 2017, 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 acquisition-related, restructuring- and restructuring-related, and litigation-related net credits and 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
June 30,
 
Six Months Ended
June 30,
(in millions)
 
2017
 
2016
 
2017
 
2016
 
 
 
 
(restated)
 
 
 
(restated)
Net sales
 
 
 
 
 
 
 
 
Interventional Cardiology
 
$
612

 
$
580

 
$
1,217

 
$
1,140

Peripheral Interventions
 
277

 
260

 
545

 
508

Cardiovascular
 
889

 
840

 
1,762

 
1,648

 
 
 
 
 
 
 
 
 
Cardiac Rhythm Management
 
484

 
476

 
956

 
915

Electrophysiology
 
67

 
60

 
133

 
120

Rhythm Management
 
551

 
536

 
1,089

 
1,035

 
 
 
 
 
 
 
 
 
Endoscopy
 
405

 
361

 
792

 
700

Urology and Pelvic Health
 
282

 
255

 
546

 
485

Neuromodulation
 
154

 
135

 
296

 
257

MedSurg
 
841

 
751

 
1,634

 
1,442

Net sales allocated to reportable segments
 
2,281

 
2,127

 
4,485

 
4,125

Impact of foreign currency fluctuations
 
(24
)
 
(1
)
 
(67
)
 
(35
)
 
 
$
2,257

 
$
2,126

 
$
4,418

 
$
4,090

 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
 
 
 
 
 
 
 
Cardiovascular
 
$
268

 
$
249

 
$
513

 
$
503

Rhythm Management
 
115

 
73

 
216

 
140

MedSurg
 
270

 
234

 
508

 
448

Operating income allocated to reportable segments
 
653

 
556

 
1,237

 
1,091

Corporate expenses and currency exchange
 
(66
)
 
(58
)
 
(153
)
 
(99
)
Acquisition-related, restructuring- and restructuring-related, and litigation-related net credits (charges)

 
(220
)
 
(697
)
 
(210
)
 
(762
)
Amortization expense
 
(142
)
 
(135
)
 
(285
)
 
(271
)
Operating income (loss)
 
225

 
(334
)
 
589

 
(41
)
Other expense, net
 
(134
)
 
(63
)
 
(193
)
 
(128
)
Income (loss) before income taxes
 
$
91

 
$
(397
)
 
$
396

 
$
(169
)