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Segment Reporting | 12 Months Ended
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Dec. 31, 2022
Segment Reporting [Abstract] |
SEGMENT REPORTING | NOTE M – SEGMENT REPORTING In the first quarter of 2022, we reorganized 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 have aggregated our core businesses into two reportable segments: MedSurg and Cardiovascular, each of which generates revenues from the sale of medical devices. In accordance with FASB ASC Topic 280, Segment Reporting, we identified our reportable segments based on the nature of our products, production processes, type of customer, selling and distribution methods and regulatory environment, as well as the economic characteristics of each of our operating segments. We measure and evaluate our reportable segments based on their respective net sales, operating income, excluding intersegment profits, and operating income as a percentage of net sales, all excluding the impact of foreign currency. 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) 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 within our consolidated statements of operations and are included in the reconciliation below. Refer to Note N – Revenue for net sales by reportable segment presented in accordance with U.S. GAAP. A reconciliation of the totals reported for the reportable segments to the applicable line items within our accompanying consolidated statements of operations is as follows (in millions, except percentages). We have revised prior periods to conform to the current year presentation.
| Year Ended December 31,
Net sales | 2022 |  | 2021 |  | 2020
MedSurg | $ | 5,057 |  |  | $ | 4,616 |  |  | $ | 3,844 |
Cardiovascular | 8,161 |  |  | 7,212 |  |  | 5,913 |
Total net sales of reportable segments | 13,218 |  |  | 11,828 |  |  | 9,756 |
Other(1) | (60) |  |  | 13 |  |  | 219 |
Impact of foreign currency fluctuations | (476) |  |  | 47 |  |  | (65) |
| $ | 12,682 |  |  | $ | 11,888 |  |  | $ | 9,913 |
| Year Ended December 31,
Income (loss) before income taxes | 2022 |  | 2021 |  | 2020
MedSurg | $ | 1,625 |  |  | $ | 1,524 |  |  | $ | 1,156 |
Cardiovascular | 2,113 |  |  | 1,888 |  |  | 1,043 |
Total operating income of reportable segments | 3,737 |  |  | 3,412 |  |  | 2,198 |
Unallocated amounts: |  |  |  |  |
Corporate expenses, including hedging activities and impact of foreign currency fluctuations on operating income of reportable segments | (436) |  |  | (406) |  |  | (424) |
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 MDR implementation costs | (789) |  |  | (1,070) |  |  | (1,208) |
Amortization expense | (803) |  |  | (741) |  |  | (789) |
Other(1) | (60) |  |  | 4 |  |  | 143 |
Operating income (loss) | 1,649 |  |  | 1,199 |  |  | (80) |
Other income (expense), net | (508) |  |  | (123) |  |  | 1 |
Income (loss) before income taxes | $ | 1,141 |  |  | $ | 1,076 |  |  | $ | (79) |
(1) In 2022, amounts reflect sales reserves established for Italian government payback provisions, which are being disputed in the Italian court system. These amounts were not allocated to our reportable segments or considered by our CODM for resource allocation and decision-making purposes. In 2021 and 2020, amounts relate to our Specialty Pharmaceuticals business. On March 1, 2021, we completed the divestiture of the Specialty Pharmaceuticals business. Prior to the divestiture, we presented the Specialty Pharmaceuticals business as a standalone operating segment alongside our reportable segments.
Operating income of reportable segments as a percentage of net sales of reportable segments | Year Ended December 31,
2022 |  | 2021 |  | 2020
MedSurg | 32.1 | % |  | 33.0 | % |  | 30.1 | %
Cardiovascular | 25.9 | % |  | 26.2 | % |  | 17.6 | %
| Year Ended December 31,
Depreciation expense | 2022 |  | 2021 |  | 2020
MedSurg | $ | 88 |  |  | $ | 91 |  |  | $ | 90 |
Cardiovascular | 245 |  |  | 261 |  |  | 240 |
Total depreciation expense of reportable segments | 333 |  |  | 352 |  |  | 330 |
Other(1) | — |  |  | — |  |  | 3 |
Consolidated depreciation expense | $ | 333 |  |  | $ | 352 |  |  | $ | 333 |
| As of December 31,
Total assets | 2022 |  | 2021
MedSurg | $ | 2,501 |  |  | $ | 2,178 |
Cardiovascular | 5,205 |  |  | 4,417 |
Total assets of reportable segments | 7,706 |  |  | 6,595 |
Goodwill | 12,920 |  |  | 11,988 |
Other intangible assets, net | 5,902 |  |  | 6,121 |
All other corporate assets | 5,941 |  |  | 7,525 |
| $ | 32,469 |  |  | $ | 32,229 |
| As of December 31,
Long-lived assets | 2022 |  | 2021 |  |
U.S. | $ | 1,241 |  |  | $ | 1,190 |  |  |
Ireland | 478 |  |  | 436 |  |  |
Costa Rica | 246 |  |  | 185 |  |  |
Other countries | 481 |  |  | 440 |  |  |
Property, plant and equipment, net | 2,446 |  |  | 2,252 |  |  |
Goodwill | 12,920 |  |  | 11,988 |  |  |
Other intangible assets, net | 5,902 |  |  | 6,121 |  |  |
Operating lease right-of-use assets in Other long-term assets | 386 |  |  | 435 |  |  |
| $ | 21,653 |  |  | $ | 20,795 |  |  |

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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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