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Segment Reporting | 12 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
SEGMENT REPORTING | NOTE O – SEGMENT REPORTING Our core businesses are organized into three reportable segments: 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. 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, goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits), certain investment portfolio net losses (gains) and EU Medical Device Regulation (MDR) implementation costs. Although we exclude these amounts from operating income of reportable segments, they are included in reported Income (loss) before income taxes in our consolidated statements of operations and are included in the reconciliation below. On March 1, 2021, we completed the divestiture of the Specialty Pharmaceuticals business. Our consolidated net sales and income (loss) before income taxes include Specialty Pharmaceuticals up to the date of the closing of the transaction. In the first quarter of 2022, we are reorganizing our operational structure in order to strengthen our category leadership in the markets we serve, and, in particular, benefit our Cardiology customers and patients. Following the reorganization, we will aggregate our core businesses into two reportable segments: MedSurg and Cardiovascular. 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 (in millions, except percentages):
| Year Ended December 31,
Net sales | 2021 |  | 2020 |  | 2019
MedSurg | $ | 3,724 |  |  | $ | 3,066 |  |  | $ | 3,307 |
Rhythm and Neuro | 3,293 |  |  | 2,752 |  |  | 3,140 |
Cardiovascular | 4,858 |  |  | 3,876 |  |  | 4,208 |
Total net sales of reportable segments | 11,875 |  |  | 9,694 |  |  | 10,654 |
All other (Specialty Pharmaceuticals) | 13 |  |  | 219 |  |  | $ | 81 |
Consolidated net sales | $ | 11,888 |  |  | $ | 9,913 |  |  | $ | 10,735 |
| Year Ended December 31,
Depreciation expense | 2021 |  | 2020 |  | 2019
MedSurg | $ | 81 |  |  | $ | 80 |  |  | $ | 75 |
Rhythm and Neuro | 104 |  |  | 96 |  |  | 92 |
Cardiovascular | 167 |  |  | 154 |  |  | 138 |
Total depreciation expense of reportable segments | 352 |  |  | 330 |  |  | 306 |
All other (Specialty Pharmaceuticals) | — |  |  | $ | 3 |  |  | $ | 6 |
Consolidated depreciation expense | $ | 352 |  |  | $ | 333 |  |  | $ | 311 |
| Year Ended December 31,
Income (loss) before income taxes | 2021 |  | 2020 |  | 2019
MedSurg | $ | 1,399 |  |  | $ | 1,079 |  |  | $ | 1,204 |
Rhythm and Neuro | 607 |  |  | 439 |  |  | 666 |
Cardiovascular | 1,448 |  |  | 661 |  |  | 1,137 |
Total operating income of reportable segments | 3,454 |  |  | 2,179 |  |  | 3,007 |
All other (Specialty Pharmaceuticals) | 4 |  |  | 143 |  |  | 56 |
Unallocated amounts: |  |  |  |  |
Corporate expenses, including hedging activities | (447) |  |  | (405) |  |  | (264) |
Goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits) and EU Medical Device Regulation (MDR) implementation costs | (1,070) |  |  | (1,208) |  |  | (582) |
Amortization expense | (741) |  |  | (789) |  |  | (699) |
Operating income (loss) | 1,199 |  |  | (80) |  |  | 1,518 |
Other income (expense), net | (123) |  |  | 1 |  |  | (831) |
Income (loss) before income taxes | $ | 1,076 |  |  | $ | (79) |  |  | $ | 687 |
Operating income of reportable segments as a percentage of net sales of reportable segments | Year Ended December 31,
2021 |  | 2020 |  | 2019
MedSurg | 37.6 | % |  | 35.2 | % |  | 36.4 | %
Rhythm and Neuro | 18.4 | % |  | 15.9 | % |  | 21.2 | %
Cardiovascular | 29.8 | % |  | 17.1 | % |  | 27.0 | %
| As of December 31,
Total assets | 2021 |  | 2020
MedSurg | $ | 1,794 |  |  | $ | 1,638 |
Rhythm and Neuro | 1,981 |  |  | 1,827 |
Cardiovascular | 2,821 |  |  | 2,461 |
Total assets of reportable segments | 6,595 |  |  | 5,926 |
All other (Specialty Pharmaceuticals) | — |  |  | 1,133 |
Goodwill | 11,988 |  |  | 9,951 |
Other intangible assets, net | 6,121 |  |  | 5,917 |
All other corporate assets | 7,525 |  |  | 7,850 |
| $ | 32,229 |  |  | $ | 30,777 |
Following the announcement of our plan to sell our Specialty Pharmaceuticals business, as of December 31, 2020, we classified the assets and liabilities of our Specialty Pharmaceuticals business (disposal group) as held for sale within our consolidated balance sheet at their respective carrying values, which approximated fair value, less costs to sell. Accordingly, the total assets of the Specialty Pharmaceuticals business as of December 31, 2020 reflected above include goodwill and intangible assets attributable to the disposal group that were not previously allocated to our reportable segments.
| As of December 31,
Long-lived assets | 2021 |  | 2020 |  | 2019
U.S. | $ | 1,190 |  |  | $ | 1,151 |  |  | $ | 1,148 |
Ireland | 436 |  |  | 382 |  |  | 327 |
Other countries | 625 |  |  | 551 |  |  | 604 |
Property, plant and equipment, net | 2,252 |  |  | 2,084 |  |  | 2,079 |
Goodwill | 11,988 |  |  | 9,951 |  |  | 10,176 |
Other intangible assets, net | 6,121 |  |  | 5,917 |  |  | 7,886 |
Operating lease right-of-use assets in Other long-term assets | 435 |  |  | 458 |  |  | 336 |
| $ | 20,795 |  |  | $ | 18,409 |  |  | $ | 20,477 |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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