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SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2020
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION Edwards Lifesciences conducts operations worldwide and is managed in the following geographical regions: United States, Europe, Japan, and Rest of World. All regions sell products that are used to treat advanced cardiovascular disease. The Company's geographic segments are reported based on the financial information provided to the Chief Operating Decision Maker (the Chief Executive Officer). The Company evaluates the performance of its geographic segments based on net sales and income before provision for income taxes ("pre-tax income"). The accounting policies of the segments are substantially the same as those described in Note 2 of the Company's consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2019. Segment net sales and segment pre-tax income are based on internally derived standard foreign exchange rates, which may differ from year to year, and do not include inter-segment profits. Because of the interdependence of the reportable segments, the operating profit as presented may not be representative of the geographical distribution that would occur if the segments were not interdependent. Net sales by geographic area are based on the location of the customer. Certain items are maintained at the corporate level and are not allocated to the segments. The non-allocated items include net interest expense, global marketing expenses, corporate research and development expenses, manufacturing variances, corporate headquarters costs, special gains and charges, stock-based compensation, foreign currency hedging activities, certain litigation costs, changes in the fair value of contingent consideration liabilities, and most of the Company's amortization expense. Although most of the Company's depreciation expense is included in segment pre-tax income, due to the Company's methodology for cost build-up, it is impractical to determine the amount of depreciation expense included in each segment, and, therefore, a portion is maintained at the corporate level. The Company neither discretely allocates assets to its operating segments, nor evaluates the operating segments using discrete asset information. The table below presents information about Edwards Lifesciences' reportable segments (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Segment Net Sales |  |  |  |  |  |  |  |  |  |  |
United States | $ | 662.0 |  |  | $ | 647.8 |  |  | $ | 1,845.6 |  |  | $ | 1,835.5 |
Europe | 241.5 |  |  | 219.8 |  |  | 695.9 |  |  | 684.3 |
Japan | 109.9 |  |  | 110.0 |  |  | 325.0 |  |  | 322.9 |
Rest of World | 115.2 |  |  | 112.0 |  |  | 323.4 |  |  | 316.5 |
Total segment net sales | $ | 1,128.6 |  |  | $ | 1,089.6 |  |  | $ | 3,189.9 |  |  | $ | 3,159.2 |
Segment Operating Income |  |  |  |  |  |  |  |  |  |  |
United States | $ | 453.8 |  |  | $ | 447.4 |  |  | $ | 1,264.0 |  |  | $ | 1,258.3 |
Europe | 124.2 |  |  | 111.5 |  |  | 356.2 |  |  | 353.2 |
Japan | 69.2 |  |  | 70.7 |  |  | 209.9 |  |  | 202.8 |
Rest of World | 35.6 |  |  | 36.7 |  |  | 105.2 |  |  | 99.8 |
Total segment operating income | $ | 682.8 |  |  | $ | 666.3 |  |  | $ | 1,935.3 |  |  | $ | 1,914.1 |
The table below presents reconciliations of segment net sales to consolidated net sales and segment operating income to consolidated pre-tax income (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Net Sales Reconciliation |  |  |  |  |  |  |  |  |  |  |
Segment net sales | $ | 1,128.6 |  |  | $ | 1,089.6 |  |  | $ | 3,189.9 |  |  | $ | 3,159.2 |
Foreign currency | 12.3 |  |  | 4.4 |  |  | 4.7 |  |  | 14.7 |
Consolidated net sales | $ | 1,140.9 |  |  | $ | 1,094.0 |  |  | $ | 3,194.6 |  |  | $ | 3,173.9 |
Pre-tax Income Reconciliation |  |  |  |  |  |  |  |  |  |  |
Segment operating income | $ | 682.8 |  |  | $ | 666.3 |  |  | $ | 1,935.3 |  |  | $ | 1,914.1 |
Unallocated amounts: |  |  |  |  |  |  |  |  |  |  |
Corporate items | (331.9 | ) |  | (384.2 | ) |  | (1,005.6 | ) |  | (1,073.1 | )
Special charge (Note 4) | — |  |  | — |  |  | — |  |  | (24.0 | )
Intellectual property litigation expenses | (8.4 | ) |  | (7.9 | ) |  | (400.8 | ) |  | (19.5 | )
Change in fair value of contingent consideration liabilities, net | 9.0 |  |  | 2.3 |  |  | (8.4 | ) |  | (12.4 | )
Foreign currency | 6.3 |  |  | 17.8 |  |  | 25.7 |  |  | 50.9 |
Consolidated operating income | 357.8 |  |  | 294.3 |  |  | 546.2 |  |  | 836.0 |
Non-operating income | 6.5 |  |  | 7.4 |  |  | 14.4 |  |  | 15.0 |
Consolidated pre-tax income | $ | 364.3 |  |  | $ | 301.7 |  |  | $ | 560.6 |  |  | $ | 851.0 |
Enterprise-wide Information The following enterprise-wide information is based on actual foreign exchange rates used in the Company's consolidated condensed financial statements.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
| (in millions)
Net Sales by Geographic Area |  |  |  |  |  |  |  |  |  |  |
United States | $ | 662.0 |  |  | $ | 647.8 |  |  | $ | 1,845.6 |  |  | $ | 1,835.5 |
Europe | 253.8 |  |  | 222.6 |  |  | 707.8 |  |  | 699.0 |
Japan | 113.9 |  |  | 112.9 |  |  | 330.7 |  |  | 324.4 |
Rest of World | 111.2 |  |  | 110.7 |  |  | 310.5 |  |  | 315.0 |
| $ | 1,140.9 |  |  | $ | 1,094.0 |  |  | $ | 3,194.6 |  |  | $ | 3,173.9 |
Net Sales by Major Product Group |  |  |  |  |  |  |  |  |  |  |
Transcatheter Aortic Valve Replacement | $ | 744.6 |  |  | $ | 700.0 |  |  | $ | 2,081.1 |  |  | $ | 1,975.4 |
Transcatheter Mitral and Tricuspid Therapies | 12.1 |  |  | 9.7 |  |  | 28.7 |  |  | 21.0 |
Surgical Structural Heart | 203.3 |  |  | 204.1 |  |  | 557.6 |  |  | 636.6 |
Critical Care | 180.9 |  |  | 180.2 |  |  | 527.2 |  |  | 540.9 |
| $ | 1,140.9 |  |  | $ | 1,094.0 |  |  | $ | 3,194.6 |  |  | $ | 3,173.9 |
| September 30, 2020 |  | December 31, 2019
| (in millions)
Long-lived Tangible Assets by Geographic Area |  |  |  |  |
United States | $ | 1,031.9 |  |  | $ | 849.1 |
Europe | 159.1 |  |  | 101.5 |
Japan | 18.6 |  |  | 21.7 |
Rest of World | 293.3 |  |  | 269.4 |
| $ | 1,502.9 |  |  | $ | 1,241.7 |

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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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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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