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Segment Reporting | 3 Months Ended
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Mar. 31, 2020
Segment Reporting [Abstract] |
SEGMENT REPORTING | NOTE J – SEGMENT REPORTING We have three reportable segments comprised of MedSurg, Rhythm and Neuro, and Cardiovascular, which represent an aggregation of our operating segments that generate revenues from the sale of medical devices. We measure and evaluate our reportable segments based on net sales of reportable segments, operating income of reportable segments, excluding intersegment profits, and operating income of reportable segments as a percentage of net sales of reportable segments. Operating income of reportable segments as a percentage of net sales of reportable segments is defined as operating income of reportable segments divided by net sales of reportable segments. We exclude from operating income of reportable segments certain corporate-related expenses and certain transactions or adjustments that our chief operating decision maker (CODM) considers to be non-operational, such as amounts related to amortization expense, intangible asset impairment charges, acquisition/divestitures-related net charges/(credits), restructuring and restructuring-related net charges/(credits), EU Medical device regulation (MDR) implementation costs and litigation-related charges/(credits). Although we exclude these amounts from operating income of reportable segments, they are included in reported Income (loss) before income taxes on the unaudited condensed consolidated statements of operations and are included in the reconciliation below. Our seven core businesses are organized into three reportable segments: MedSurg, Rhythm and Neuro, and Cardiovascular. Following our acquisition of BTG, which closed during the third quarter of 2019, we have included BTG’s Interventional Medicine business within our Peripheral Interventions operating segment, within the Cardiovascular reportable segment. We present BTG’s Specialty Pharmaceuticals business as a standalone operating segment alongside our reportable segments. 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 (in millions, except percentages):
| Three Months Ended March 31,
Net sales | 2020 |  | 2019
MedSurg | $ | 774 |  |  | $ | 766 |
Rhythm and Neuro | 703 |  |  | 757 |
Cardiovascular | 1,026 |  |  | 972 |
Total net sales of reportable segments | 2,502 |  |  | 2,493 |
All other (Specialty Pharmaceuticals) | 41 |  |  | n/a |
Consolidated net sales | $ | 2,543 |  |  | $ | 2,493 |
| Three Months Ended March 31,
Income (loss) before income taxes | 2020 |  | 2019
MedSurg | $ | 259 |  |  | $ | 256 |
Rhythm and Neuro | 99 |  |  | 155 |
Cardiovascular | 199 |  |  | 275 |
Total operating income of reportable segments | 556 |  |  | 686 |
All other (Specialty Pharmaceuticals) | 26 |  |  | n/a |
Unallocated amounts: |  |  |
Corporate expenses, including hedging activities | (33 | ) |  | (48 | )
Intangible asset impairment charges, acquisition/divestiture-related net (charges) credits, restructuring- and restructuring-related net (charges) credits, EU MDR implementation costs and litigation-related net (charges) credits | (202 | ) |  | 63 |
Amortization expense | (201 | ) |  | (160 | )
Operating income (loss) | 146 |  |  | 541 |
Other expense, net | (124 | ) |  | (84 | )
Income (loss) before income taxes | $ | 22 |  |  | $ | 457 |
Operating income of reportable segments as a percentage of net sales of reportable segments | Three Months Ended March 31,
2020 |  | 2019
MedSurg | 33.4 | % |  | 33.4 | %
Rhythm and Neuro | 14.1 | % |  | 20.5 | %
Cardiovascular | 19.4 | % |  | 28.3 | %

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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