Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Jan. 31, 2014 | Jun. 28, 2013 |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'BOSTON SCIENTIFIC CORPORATION | ' | ' |
Entity Central Index Key | '0000885725 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 1,324,192,809 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $12.30 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net sales | $7,143 | $7,249 | $7,622 |
Cost of products sold | 2,174 | 2,349 | 2,659 |
Gross profit | 4,969 | 4,900 | 4,963 |
Operating expenses: | ' | ' | ' |
Selling, general and administrative expenses | 2,674 | 2,535 | 2,487 |
Research and development expenses | 861 | 886 | 895 |
Royalty expense | 140 | 153 | 172 |
Amortization expense | 410 | 395 | 421 |
Goodwill impairment charges | 423 | 4,350 | 697 |
Intangible asset impairment charges | 53 | 142 | 21 |
Contingent consideration expense (benefit) | 4 | -6 | 7 |
Restructuring charges | 101 | 136 | 89 |
Litigation-related charges | 221 | 192 | 48 |
Gain on divestiture | -38 | -15 | -778 |
Operating expenses | 4,849 | 8,768 | 4,059 |
Operating income (loss) | 120 | -3,868 | 904 |
Other (expense) income: | ' | ' | ' |
Interest expense | -324 | -261 | -281 |
Other, net | -19 | 22 | 19 |
(Loss) income before income taxes | -223 | -4,107 | 642 |
Income tax (benefit) expense | -102 | -39 | 201 |
Net (loss) income | ($121) | ($4,068) | $441 |
Net (loss) income per common share — basic | ($0.09) | ($2.89) | $0.29 |
Net (loss) income per common share — assuming dilution | ($0.09) | ($2.89) | $0.29 |
Weighted-average shares outstanding | ' | ' | ' |
Basic | 1,341.20 | 1,406.70 | 1,509.30 |
Assuming dilution | 1,341.20 | 1,406.70 | 1,519 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $217 | $207 |
Trade accounts receivable, net | 1,307 | 1,217 |
Inventories | 897 | 884 |
Deferred income taxes | 288 | 433 |
Prepaid expenses and other current assets | 302 | 281 |
Total current assets | 3,011 | 3,022 |
Property, plant and equipment, net | 1,546 | 1,564 |
Goodwill | 5,693 | 5,973 |
Other intangible assets, net | 5,950 | 6,289 |
Other long-term assets | 371 | 306 |
TOTAL ASSETS | 16,571 | 17,154 |
Current liabilities: | ' | ' |
Current debt obligations | 3 | 4 |
Accounts payable | 246 | 232 |
Accrued expenses | 1,348 | 1,284 |
Other current liabilities | 227 | 252 |
Total current liabilities | 1,824 | 1,772 |
Long-term debt | 4,237 | 4,252 |
Deferred income taxes | 1,402 | 1,713 |
Other long-term liabilities | 2,569 | 2,547 |
Commitments and contingencies | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, $0.01 par value - authorized 50,000,000 shares, none issued and outstanding | ' | ' |
Common stock, $0.01 par value - authorized 2,000,000,000 shares; issued 1,560,302,634 shares as of December 31, 2013 and 1,542,347,188 shares as of December 31, 2012 | 16 | 15 |
Treasury stock, at cost - 238,006,570 shares as of December 31, 2013 and 186,635,532 shares as of December 31, 2012 | -1,592 | -1,092 |
Additional paid-in capital | 16,579 | 16,429 |
Accumulated deficit | -8,570 | -8,449 |
Accumulated other comprehensive loss, net of tax: | ' | ' |
Foreign currency translation adjustment | -16 | -26 |
Unrealized gain on derivative financial instruments | 141 | 34 |
Unrealized costs associated with certain retirement plans | -19 | -41 |
Total stockholders’ equity | 6,539 | 6,870 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $16,571 | $17,154 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet Paranthetical (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 1,560,302,634 | 1,542,347,188 |
Common stock, shares outstanding | 1,322,296,064 | 1,355,711,656 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury shares | 238,006,570 | 186,635,532 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net (loss) income | ($121) | ($4,068) | $441 |
Gain on sale of businesses | -38 | -15 | -778 |
Depreciation and amortization | 689 | 683 | 717 |
Deferred income taxes | -223 | -166 | 46 |
Stock-based compensation expense | 105 | 108 | 128 |
Goodwill impairment charges | 423 | 4,350 | 697 |
Intangible asset impairment charges | 53 | 142 | 21 |
Net losses (gains) on investments and notes receivable | 9 | -37 | -27 |
Contingent consideration expense (income) | 4 | -6 | 7 |
Payment of contingent consideration in excess of amounts established in purchase accounting | -5 | -8 | ' |
Other, net | 31 | -7 | -7 |
Trade accounts receivable | -101 | 37 | 42 |
Inventories | -7 | 66 | -54 |
Other assets | 91 | -68 | -60 |
Accounts payable and accrued expenses | -37 | -131 | -271 |
Other liabilities | 209 | 380 | 106 |
Cash provided by operating activities | 1,082 | 1,260 | 1,008 |
Investing Activities | ' | ' | ' |
Purchases of property, plant and equipment | -245 | -226 | -304 |
Proceeds on disposals | 53 | 16 | 16 |
Payments for acquisitions of businesses, net of cash acquired | -274 | -366 | -370 |
Proceeds from business divestitures, net of costs | 30 | 10 | 1,440 |
Payments for investments and acquisitions of certain technologies | -44 | -22 | -11 |
Proceeds from investments and collections of notes receivable | 5 | 9 | 5 |
Cash (used for) provided by investing activities | -475 | -579 | 776 |
Financing Activities | ' | ' | ' |
Proceeds from long-term borrowings, net of debt issuance costs | 1,440 | ' | ' |
Payments on long-term borrowings | -1,450 | -10 | -1,250 |
Proceeds from borrowings on credit facilities | 340 | 371 | 565 |
Payments of contingent consideration amounts previously established in purchase accounting | -160 | -146 | -7 |
Payments on borrowings from credit facilities | -340 | -380 | -565 |
Payments for acquisitions of treasury stock | -500 | -600 | -492 |
Proceeds from issuances of shares of common stock | 74 | 21 | 21 |
Cash used for financing activities | -596 | -744 | -1,728 |
Effect of foreign exchange rates on cash | -1 | 3 | -2 |
Net increase (decrease) in cash and cash equivalents | 10 | -60 | 54 |
Cash and cash equivalents at beginning of period | 207 | 267 | 213 |
Cash and cash equivalents at end of period | 217 | 207 | 267 |
Supplemental Information | ' | ' | ' |
Cash paid for income taxes, net | 67 | 97 | 138 |
Cash paid for interest | 329 | 255 | 277 |
Fair value of contingent consideration recorded | $0 | $467 | $287 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Millions, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2010 | ' | $15 | ' | $16,232 | ($4,822) | ($129) |
Balance (Shares) at Dec. 31, 2010 | ' | 1,520,780,112 | ' | ' | ' | ' |
Net income (loss) | 441 | ' | ' | ' | 441 | ' |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | -8 | ' | ' | ' | ' | -8 |
Net change in derivative financial instruments | 17 | ' | ' | ' | ' | 17 |
Net change in certain retirement plans | -18 | ' | ' | ' | ' | -18 |
Impact of stock-based compensation plans, net of tax (Shares) | ' | 10,226,278 | ' | ' | ' | ' |
Impact of stock-based compensation plans, net of tax | ' | ' | ' | 117 | ' | ' |
Acquisition of treasury stock | ' | ' | -492 | ' | ' | ' |
Balance at Dec. 31, 2011 | ' | 15 | -492 | 16,349 | -4,381 | -138 |
Balance (Shares) at Dec. 31, 2011 | ' | 1,531,006,390 | ' | ' | ' | ' |
Net income (loss) | -4,068 | ' | ' | ' | -4,068 | ' |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | 32 | ' | ' | ' | ' | 32 |
Net change in derivative financial instruments | 82 | ' | ' | ' | ' | 82 |
Net change in certain retirement plans | -9 | ' | ' | ' | ' | -9 |
Impact of stock-based compensation plans, net of tax (Shares) | ' | 11,340,798 | ' | ' | ' | ' |
Impact of stock-based compensation plans, net of tax | ' | ' | ' | 80 | ' | ' |
Acquisition of treasury stock | ' | ' | -600 | ' | ' | ' |
Balance at Dec. 31, 2012 | 6,870 | 15 | -1,092 | 16,429 | -8,449 | -33 |
Balance (Shares) at Dec. 31, 2012 | 1,542,347,188 | 1,542,347,188 | ' | ' | ' | ' |
Net income (loss) | -121 | ' | ' | ' | -121 | ' |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | 10 | ' | ' | ' | ' | 10 |
Net change in derivative financial instruments | 107 | ' | ' | ' | ' | 107 |
Net change in certain retirement plans | 22 | ' | ' | ' | ' | 22 |
Impact of stock-based compensation plans, net of tax (Shares) | ' | 17,955,446 | ' | ' | ' | ' |
Stock Issued During Period, Value, New Issues | ' | 1 | ' | ' | ' | ' |
Impact of stock-based compensation plans, net of tax | ' | ' | ' | 150 | ' | ' |
Acquisition of treasury stock | ' | ' | -500 | ' | ' | ' |
Balance at Dec. 31, 2013 | $6,539 | $16 | ($1,592) | $16,579 | ($8,570) | $106 |
Balance (Shares) at Dec. 31, 2013 | 1,560,302,634 | 1,560,302,634 | ' | ' | ' | ' |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net (loss) income | ($121) | ($4,068) | $441 |
Foreign currency translation adjustment | 10 | 32 | -8 |
Net change in unrealized gains and losses on derivative financial instruments, net of tax | 107 | 82 | 17 |
Net change in certain retirement plans | 22 | -9 | -18 |
Total other comprehensive income (loss) | 139 | 105 | -9 |
Total comprehensive income (loss) | $18 | ($3,963) | $432 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Significant Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||||||||
Our consolidated financial statements include the accounts of Boston Scientific Corporation and our wholly-owned subsidiaries, after the elimination of intercompany transactions. We assess the terms of our investment interests to determine if any of our investees meet the definition of a variable interest entity (VIE). For any VIEs, we perform an analysis to determine whether our variable interests give us a controlling financial interest in a VIE. The analysis identifies the primary beneficiary of a VIE as the enterprise that has both 1) the power to direct activities of a VIE that most significantly impact the entity’s economic performance and 2) the obligation to absorb losses of the entity or the right to receive benefits from the entity. Based on our assessments under the applicable guidance, we did not have significant interests in any VIEs and therefore did not consolidate any VIEs during the years ended December 31, 2013, 2012, and 2011. | |||||||||||||||||||||||||
On January 3, 2011, we closed the sale of our Neurovascular business to Stryker Corporation (Stryker). Due to our continuing involvement in the operations of the Neurovascular business following the divestiture, the divestiture did not meet the criteria for presentation as a discontinued operation and, therefore, the results of the Neurovascular business are included in our results of operations for all periods presented. Refer to Note C – Divestitures for a description of this business divestiture. | |||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||
The accompanying consolidated financial statements of Boston Scientific Corporation have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and with the instructions to Form 10-K and Article 10 of Regulation S-X. | |||||||||||||||||||||||||
Reclassification | |||||||||||||||||||||||||
Effective as of January 1, 2013, we reorganized our business from geographic regions to fully operationalized global business units. Our reorganization changed our reporting structure and changed the composition of our reporting units. We have reclassified certain prior year amounts to conform to the current year’s presentation. See Note D - Goodwill and Other Intangible Assets and Note O – Segment Reporting for further details. | |||||||||||||||||||||||||
Subsequent Events | |||||||||||||||||||||||||
We evaluate events occurring after the date of our accompanying consolidated balance sheets for potential recognition or disclosure in our financial statements. We did not identify any material subsequent events requiring adjustment to our accompanying consolidated financial statements (recognized subsequent events). Those items requiring disclosure (unrecognized subsequent events) in the financial statements have been disclosed accordingly. Refer to Note J– Income Taxes and Note K– Commitments and Contingencies for more information. | |||||||||||||||||||||||||
Accounting Estimates | |||||||||||||||||||||||||
To prepare our consolidated financial statements in accordance with U.S. GAAP, management makes estimates and assumptions that may affect the reported amounts of our assets and liabilities, the disclosure of contingent liabilities as of the date of our financial statements and the reported amounts of our revenues and expenses during the reporting period. Our actual results may differ from these estimates. Refer to Critical Accounting Estimates included in Item 7 of this Annual Report for further discussion. | |||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||
We record cash and cash equivalents in our consolidated balance sheets at cost, which approximates fair value. Our policy is to invest excess cash in short-term marketable securities earning a market rate of interest without assuming undue risk to principal, and we limit our direct exposure to securities in any one industry or issuer. We consider all highly liquid investments purchased with a remaining maturity of three months or less at the time of acquisition to be cash equivalents. | |||||||||||||||||||||||||
We record available-for-sale investments at fair value and exclude unrealized gains and temporary losses on available-for-sale securities from earnings, reporting such gains and losses, net of tax, as a separate component of stockholders’ equity, until realized. We compute realized gains and losses on sales of available-for-sale securities based on the average cost method, adjusted for any other-than-temporary declines in fair value. We held no available-for-sale securities during 2013, 2012, and 2011. | |||||||||||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, derivative financial instrument contracts and accounts and notes receivable. Our investment policy limits exposure to concentrations of credit risk and changes in market conditions. Counterparties to financial instruments expose us to credit-related losses in the event of nonperformance. We transact our financial instruments with a diversified group of major financial institutions with investment grade credit ratings and actively monitor their credit ratings and our outstanding positions to limit our credit exposure. We provide credit, in the normal course of business, to hospitals, healthcare agencies, clinics, doctors' offices and other private and governmental institutions and generally do not require collateral. We record our accounts receivable in our consolidated balance sheets at net realizable value. We perform on-going credit evaluations of our customers and maintain allowances for potential credit losses, based on historical information and management's best estimates. Amounts determined to be uncollectible are written off against this reserve. We recorded write-offs of uncollectible accounts receivable of $12 million in 2013, $7 million in 2012, and $13 million in 2011. We are not dependent on any single institution and no single customer accounted for more than ten percent of our net sales in 2013, 2012, or 2011 or accounts receivable at December 31, 2013 or 2012; however, large group purchasing organizations, hospital networks and other buying groups have become increasingly important to our business and represent a substantial portion of our U.S. net sales. | |||||||||||||||||||||||||
We closely monitor outstanding receivables for potential collection risks, including those that may arise from economic conditions, in both the U.S. and international economies. Our European sales to government-owned or supported customers in Southern Europe, specifically Greece, Italy, Spain and Portugal are subject to an increased number of days outstanding above historical levels prior to payment. Historically, receivable balances with certain publicly-owned hospitals in these countries accumulate over a period of time and are then subsequently settled as large lump sum payments. While we believe our allowance for doubtful accounts in these countries is adequate as of December 31, 2013, if significant changes were to occur in the payment practices of these European governments or if government funding becomes unavailable, we may not be able to collect on receivables due to us from these customers and our write-offs of uncollectible amounts may increase. As of December 31, 2013, our net receivables in these countries greater than 180 days past due totaled approximately $95 million, of which approximately $50 million were past due greater than 360 days. | |||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
We generate revenue primarily from the sale of single-use medical devices, and present revenue net of sales taxes in our consolidated statements of operations. We sell our products primarily through a direct sales force. In certain international markets, we sell our products through independent distributors. We consider revenue to be realized or realizable and earned when all of the following criteria are met: persuasive evidence of a sales arrangement exists; delivery has occurred or services have been rendered; the price is fixed or determinable; and collectibility is reasonably assured. Revenue is recognized upon passage of title and risk of loss to customers, unless a consignment arrangement exists or we are required to provide additional services, and provided we can form an estimate for sales returns. We recognize revenue from consignment arrangements based on product usage, or implant, which indicates that the sale is complete. Many of our Cardiac Rhythm Management (CRM) product offerings combine the sale of a device with our LATITUDE® Patient Management System, which represents a future service obligation. For revenue arrangements with multiple deliverables, where the sale of a device is combined with a future service obligation, we defer revenue on the undelivered element and recognize this revenue over the related service period. We do not have vendor specific objective evidence of selling price available related to our future service obligations; therefore, we determine our estimates of selling price using third party evidence when available; otherwise, we use our best estimate of selling price. We allocate arrangement consideration using the relative selling price method. | |||||||||||||||||||||||||
We generally allow our customers to return defective, damaged and, in certain cases, expired products for credit. We base our estimate for sales returns upon historical trends and record the amount as a reduction to revenue when we sell the initial product. In addition, we may allow customers to return previously purchased products for next-generation product offerings. For these transactions, we defer recognition of revenue on the sale of the earlier generation product based upon an estimate of the amount of product to be returned when the next-generation products are shipped to the customer. | |||||||||||||||||||||||||
We also offer sales rebates and discounts to certain customers. We treat sales rebates and discounts as a reduction of revenue and classify the corresponding liability as current. We estimate rebates for products where there is sufficient historical information available to predict the volume of expected future rebates. If we are unable to estimate the expected rebates reasonably, we record a liability for the maximum rebate percentage offered. We have entered certain agreements with group purchasing organizations to sell our products to participating hospitals at negotiated prices. We recognize revenue from these agreements following the same revenue recognition criteria discussed above. | |||||||||||||||||||||||||
Warranty Obligations | |||||||||||||||||||||||||
We offer warranties on certain of our product offerings. The majority of our warranty liability relates to implantable devices offered by our CRM business, which include defibrillator and pacemaker systems. Our CRM products come with a standard limited warranty covering the replacement of these devices. We offer a full warranty for a portion of the period post-implant, and a partial warranty for a period of time thereafter. We estimate the costs that we may incur under our warranty programs based on the number of units sold, historical and anticipated rates of warranty claims and cost per claim, and record a liability equal to these estimated costs as cost of products sold at the time the product sale occurs. We assess the adequacy of our recorded warranty liabilities on a quarterly basis and adjust these amounts as necessary. | |||||||||||||||||||||||||
Changes in our product warranty accrual during 2013, 2012, and 2011 consisted of the following (in millions): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Beginning balance | $ | 26 | $ | 30 | $ | 43 | |||||||||||||||||||
Provision | 12 | 8 | 9 | ||||||||||||||||||||||
Settlements/ reversals | (10 | ) | (12 | ) | (22 | ) | |||||||||||||||||||
Ending balance | $ | 28 | $ | 26 | $ | 30 | |||||||||||||||||||
Inventories | |||||||||||||||||||||||||
We state inventories at the lower of first-in, first-out cost or market. We base our provisions for excess, expired and obsolete inventory primarily on our estimates of forecasted net sales. A significant change in the timing or level of demand for our products as compared to forecasted amounts may result in recording additional provisions for excess, expired and obsolete inventory in the future. Further, the industry in which we participate is characterized by rapid product development and frequent new product introductions. Uncertain timing of next-generation product approvals, variability in product launch strategies, product recalls and variation in product utilization all affect our estimates related to excess, expired and obsolete inventory. Approximately 40 percent of our finished goods inventory as of December 31, 2013 and 2012 was at customer locations pursuant to consignment arrangements or held by sales representatives. | |||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||
We state property, plant, equipment, and leasehold improvements at historical cost. We charge expenditures for maintenance and repairs to expense and capitalize additions and improvements that extend the life of the underlying asset. We provide for depreciation using the straight-line method at rates that approximate the estimated useful lives of the assets. We depreciate buildings and improvements over a 20 to 40 year life; equipment, furniture and fixtures over a three to ten year life; and leasehold improvements over the shorter of the useful life of the improvement or the term of the related lease. Depreciation expense was $279 million in 2013, $288 million in 2012, and $296 million in 2011. | |||||||||||||||||||||||||
Valuation of Business Combinations | |||||||||||||||||||||||||
We allocate the amounts we pay for each acquisition to the assets we acquire and liabilities we assume based on their fair values at the dates of acquisition, including identifiable intangible assets and in-process research and development which either arise from a contractual or legal right or are separable from goodwill. We base the fair value of identifiable intangible assets acquired in a business combination, including in-process research and development, on detailed valuations that use information and assumptions provided by management, which consider management’s best estimates of inputs and assumptions that a market participant would use. We allocate any excess purchase price over the fair value of the net tangible and identifiable intangible assets acquired to goodwill. Transaction costs associated with these acquisitions are expensed as incurred through selling, general and administrative costs. | |||||||||||||||||||||||||
In those circumstances where an acquisition involves a contingent consideration arrangement, we recognize a liability equal to the fair value of the contingent payments we expect to make as of the acquisition date. We re-measure this liability each reporting period and record changes in the fair value through a separate line item within our consolidated statements of operations. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing and amount of revenue estimates or in the timing or likelihood of achieving regulatory, revenue or commercialization-based milestones. | |||||||||||||||||||||||||
Indefinite-lived Intangibles, including In-Process Research and Development | |||||||||||||||||||||||||
Our indefinite-lived intangible assets that are not subject to amortization primarily include acquired balloon and other technology, which is foundational to our continuing operations within the Cardiovascular market and other markets within interventional medicine, and in-process research and development intangible assets acquired in a business combination. Our in-process research and development represents intangible assets acquired in a business combination that are used in research and development activities but have not yet reached technological feasibility, regardless of whether they have alternative future use. The primary basis for determining the technological feasibility or completion of these projects is obtaining regulatory approval to market the underlying products in an applicable geographic region. We classify in-process research and development acquired in a business combination as an indefinite-lived intangible asset until the completion or abandonment of the associated research and development efforts. Upon completion of the associated research and development efforts, we will determine the useful life of the technology and begin amortizing the assets to reflect their use over their remaining lives. Upon permanent abandonment, we would write-off the remaining carrying amount of the associated in-process research and development intangible asset. We test our indefinite-lived intangible assets at least annually for impairment and reassess their classification as indefinite-lived assets. We assess qualitative factors to determine whether the existence of events and circumstances indicate that it is more likely than not that our indefinite-lived intangible assets are impaired. If we conclude that it is more likely than not that the asset is impaired, we then determine the fair value of the intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying value in accordance with ASC Topic 350, Intangibles-Goodwill and Other. If the carrying value exceeds the fair value of the indefinite-lived intangible asset, we write the carrying value down to the fair value. | |||||||||||||||||||||||||
We use the income approach to determine the fair values of our in-process research and development. This approach calculates fair value by estimating the after-tax cash flows attributable to an in-process project over its useful life and then discounting these after-tax cash flows back to a present value. We base our revenue assumptions on estimates of relevant market sizes, expected market growth rates, expected trends in technology and expected levels of market share. In arriving at the value of the in-process projects, we consider, among other factors: the in-process projects’ stage of completion; the complexity of the work completed as of the acquisition date; the costs already incurred; the projected costs to complete; the contribution of other acquired assets; the expected regulatory path and introduction dates by region; and the estimated useful life of the technology. We apply a market-participant risk-adjusted discount rate to arrive at a present value as of the date of acquisition. | |||||||||||||||||||||||||
We test our in-process research and development intangible assets acquired in a business combination for impairment at least annually during the third quarter, and more frequently if events or changes in circumstances indicate that the assets may be impaired. | |||||||||||||||||||||||||
For asset purchases outside of business combinations, we expense any purchased research and development assets as of the acquisition date. | |||||||||||||||||||||||||
Amortization and Impairment of Intangible Assets | |||||||||||||||||||||||||
We record intangible assets at historical cost and amortize them over their estimated useful lives. We use a straight-line method of amortization, unless a method that better reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up can be reliably determined. The approximate useful lives for amortization of our intangible assets are as follows: patents and licenses, two to 20 years; definite-lived technology-related, five to 25 years; customer relationships, five to 25 years; other intangible assets, various. | |||||||||||||||||||||||||
We review intangible assets subject to amortization quarterly to determine if any adverse conditions exist or a change in circumstances has occurred that would indicate impairment or a change in the remaining useful life. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in legal factors or business climate that could affect the value of an asset, a product recall, or an adverse action or assessment by a regulator. If an impairment indicator exists, we test the intangible asset for recoverability. For purposes of the recoverability test, we group our amortizable intangible assets with other assets and liabilities at the lowest level of identifiable cash flows if the intangible asset does not generate cash flows independent of other assets and liabilities. If the carrying value of the intangible asset (asset group) exceeds the undiscounted cash flows expected to result from the use and eventual disposition of the intangible asset (asset group), we will write the carrying value down to the fair value in the period identified. | |||||||||||||||||||||||||
We generally calculate fair value of our intangible assets as the present value of estimated future cash flows we expect to generate from the asset using a risk-adjusted discount rate. In determining our estimated future cash flows associated with our intangible assets, we use estimates and assumptions about future revenue contributions, cost structures and remaining useful lives of the asset (asset group). See Note D - Goodwill and Other Intangible Assets for more information related to impairments of intangible assets during 2013, 2012, and 2011. | |||||||||||||||||||||||||
For patents developed internally, we capitalize costs incurred to obtain patents, including attorney fees, registration fees, consulting fees, and other expenditures directly related to securing the patent. | |||||||||||||||||||||||||
Goodwill Valuation | |||||||||||||||||||||||||
Effective as of January 1, 2013, we reorganized our business from geographic regions to fully operationalized global business units. Our reorganization changed our reporting structure and changed the composition of our reporting units for goodwill impairment testing purposes. Following the reorganization, based on information regularly reviewed by our chief operating decision maker, we have three new global reportable segments consisting of: Cardiovascular, Rhythm Management, and MedSurg. We determined our new global reporting units by identifying our operating segments and assessing whether any components of these segments constituted a business for which discrete financial information is available and whether segment management regularly reviews the operating results of any components. Through this process, we identified the following new global reporting units as of January 1, 2013: Interventional Cardiology, Peripheral Interventions, Cardiac Rhythm Management, Electrophysiology, Endoscopy, Urology and Women's Health, and Neuromodulation. The discussion below for 2013 relates to our global business reporting units and for 2012 and prior periods relates to our former regional reporting units. | |||||||||||||||||||||||||
We allocate any excess purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination to goodwill. We test our goodwill balances during the second quarter of each year for impairment, or more frequently if indicators are present or changes in circumstances suggest that impairment may exist. In performing the assessment, we utilize the two-step approach prescribed under ASC Topic 350, Intangibles-Goodwill and Other (Topic 350). The first step requires a comparison of the carrying value of the reporting units, as defined, to the fair value of these units. We assess goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a component. We determine our reporting units by first identifying our operating segments, and then assess whether any components of these segments constitute a business for which discrete financial information is available and where segment management regularly reviews the operating results of that component. We aggregate components within an operating segment that have similar economic characteristics. For our 2013 annual impairment assessment we identified seven reporting units, including Interventional Cardiology, Peripheral Interventions, Cardiac Rhythm Management, Electrophysiology, Endoscopy, Urology and Women's Health and Neuromodulation. For our 2012 and 2011 impairment assessments, we identified six reporting units within the U.S., including our CRM, Neuromodulation, Endoscopy, Urology and Women's Health, Electrophysiology, and Cardiovascular (consisting of Interventional Cardiology and Peripheral Interventions) franchises, which in aggregate make up the U.S. reportable segment. In addition, we identified four international reporting units, including EMEA, Japan, Asia Pacific and the Americas. | |||||||||||||||||||||||||
When allocating goodwill from business combinations to our reporting units, we assign goodwill to the reporting units that we expect to benefit from the respective business combination at the time of acquisition. In addition, for purposes of performing our goodwill impairment tests, assets and liabilities, including corporate assets, which relate to a reporting unit’s operations, and would be considered in determining its fair value, are allocated to the individual reporting units. We allocate assets and liabilities not directly related to a specific reporting unit, but from which the reporting unit benefits, based primarily on the respective revenue contribution of each reporting unit. | |||||||||||||||||||||||||
During 2013, 2012, and 2011, we used only the income approach, specifically the DCF method, to derive the fair value of each of our reporting units in preparing our goodwill impairment assessments. This approach calculates fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting these after-tax cash flows to a present value using a risk-adjusted discount rate. We selected this method as being the most meaningful in preparing our goodwill assessments because we believe the income approach most appropriately measures our income producing assets. We have considered using the market approach and cost approach but concluded they are not appropriate in valuing our reporting units given the lack of relevant market comparisons available for application of the market approach and the inability to replicate the value of the specific technology-based assets within our reporting units for application of the cost approach. Therefore, we believe that the income approach represents the most appropriate valuation technique for which sufficient data are available to determine the fair value of our reporting units. | |||||||||||||||||||||||||
In applying the income approach to our accounting for goodwill, we make assumptions about the amount and timing of future expected cash flows, terminal value growth rates and appropriate discount rates. The amount and timing of future cash flows within our DCF analysis is based on our most recent operational budgets, long range strategic plans and other estimates. The terminal value growth rate is used to calculate the value of cash flows beyond the last projected period in our DCF analysis and reflects our best estimates for stable, perpetual growth of our reporting units. We use estimates of market-participant risk-adjusted WACC as a basis for determining the discount rates to apply to our reporting units’ future expected cash flows. | |||||||||||||||||||||||||
If the carrying value of a reporting unit exceeds its fair value, we then perform the second step of the goodwill impairment test to measure the amount of impairment loss, if any. If the carrying value of a reporting unit is zero or negative, we evaluate whether it is more likely than not that a goodwill impairment exists. If we determine adverse qualitative factors exist that would indicate it is more likely than not an impairment exists, we then perform the second step of the goodwill test. The second step of the goodwill impairment test compares the estimated fair value of a reporting unit’s goodwill to its carrying value. If we were unable to complete the second step of the test prior to the issuance of our financial statements and an impairment loss was probable and could be reasonably estimated, we would recognize our best estimate of the loss in our current period financial statements and disclose that the amount is an estimate. We would then recognize any adjustment to that estimate in subsequent reporting periods, once we have finalized the second step of the impairment test. See Note D - Goodwill and Other Intangible Assets for discussion of our goodwill impairment charges. | |||||||||||||||||||||||||
Investments in Publicly Traded and Privately Held Entities | |||||||||||||||||||||||||
We account for our publicly traded investments as available-for-sale securities based on the quoted market price at the end of the reporting period. We compute realized gains and losses on sales of available-for-sale securities based on the average cost method, adjusted for any other-than-temporary declines in fair value. We account for our investments in privately held entities, for which fair value is not readily determinable, in accordance with ASC Topic 323, Investments – Equity Method and Joint Ventures. | |||||||||||||||||||||||||
We account for investments in entities over which we have the ability to exercise significant influence under the equity method if we hold 50 percent or less of the voting stock and the entity is not a VIE in which we are the primary beneficiary. We record these investments initially at cost, and adjust the carrying amount to reflect our share of the earnings or losses of the investee, including all adjustments similar to those made in preparing consolidated financial statements. The book value of investments that we accounted for under the equity method of accounting was $18 million as of December 31, 2013 and $16 million as of December 31, 2012. We account for investments in entities in which we have less than a 20 percent ownership interest under the cost method of accounting if we do not have the ability to exercise significant influence over the investee. The aggregate carrying amount of our cost method investments was $20 million as of December 31, 2013 and $13 million as of December 31, 2012. In addition, we had notes receivable from certain companies of $13 million as of December 31, 2013 and $5 million as of December 31, 2012. | |||||||||||||||||||||||||
Each reporting period, we evaluate our investments to determine if there are any events or circumstances that are likely to have a significant adverse effect on the fair value of the investment. Examples of such impairment indicators include, but are not limited to: a significant deterioration in earnings performance; recent financing rounds at reduced valuations; a significant adverse change in the regulatory, economic or technological environment of an investee; or a significant doubt about an investee’s ability to continue as a going concern. If we identify an impairment indicator, we will estimate the fair value of the investment and compare it to its carrying value. Our estimation of fair value considers all available financial information related to the investee, including valuations based on recent third-party equity investments in the investee. If the fair value of the investment is less than its carrying value, the investment is impaired and we make a determination as to whether the impairment is other-than-temporary. We deem an impairment to be other-than-temporary unless we have the ability and intent to hold an investment for a period sufficient for a market recovery up to the carrying value of the investment. Further, evidence must indicate that the carrying value of the investment is recoverable within a reasonable period. For other-than-temporary impairments, we recognize an impairment loss equal to the difference between an investment’s carrying value and its fair value. Impairment losses on our investments are included in other, net in our consolidated statements of operations. | |||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
We utilize the asset and liability method of accounting for income taxes. Under this method, we determine deferred tax assets and liabilities based on differences between the financial reporting and tax bases of our assets and liabilities. We measure deferred tax assets and liabilities using the enacted tax rates and laws that will be in effect when we expect the differences to reverse. We reduce our deferred tax assets by a valuation allowance if, based upon the weight of available evidence, it is more likely than not that we will not realize some portion or all of the deferred tax assets. We consider relevant evidence, both positive and negative, to determine the need for a valuation allowance. Information evaluated includes our financial position and results of operations for the current and preceding years, the availability of deferred tax liabilities and tax carrybacks, as well as an evaluation of currently available information about future years. | |||||||||||||||||||||||||
We do not provide income taxes on unremitted earnings of our foreign subsidiaries where we have indefinitely reinvested such earnings in our foreign operations. It is not practicable to estimate the amount of income taxes payable on the earnings that are indefinitely reinvested in foreign operations. Unremitted earnings of our foreign subsidiaries that we have indefinitely reinvested in foreign operations are $11.902 billion as of December 31, 2013 and $11.041 billion as of December 31, 2012. | |||||||||||||||||||||||||
We provide for potential amounts due in various tax jurisdictions. In the ordinary course of conducting business in multiple countries and tax jurisdictions, there are many transactions and calculations where the ultimate tax outcome is uncertain. Judgment is required in determining our worldwide income tax provision. In our opinion, we have made adequate provisions for income taxes for all years subject to audit. Although we believe our estimates are reasonable, the final outcome of open tax matters may be different from that which we have reflected in our historical income tax provisions and accruals. Such differences could have a material impact on our income tax provision and operating results. See Note J - Income Taxes for further information and discussion of our income tax provision and balances. | |||||||||||||||||||||||||
Legal and Product Liability Costs | |||||||||||||||||||||||||
We are involved in various legal and regulatory proceedings, including intellectual property, breach of contract, securities litigation and product liability suits. In some cases, the claimants seek damages, as well as other relief, which, if granted, could require significant expenditures or impact our ability to sell our products. We are also the subject of certain governmental investigations, which could result in substantial fines, penalties, and administrative remedies. We maintain an insurance policy providing limited coverage against securities claims, and we are substantially self-insured with respect to product liability claims and fully self-insured with respect to intellectual property infringement claims. We generally record losses for claims in excess of the limits of purchased insurance in earnings at the time and to the extent they are probable and estimable. We accrue anticipated costs of settlement, damages, losses for general product liability claims and, under certain conditions, costs of defense, based on historical experience or to the extent specific losses are probable and estimable. Otherwise, we expense these costs as incurred. If the estimate of a probable loss is a range and no amount within the range is more likely, we accrue the minimum amount of the range. We analyze litigation settlements to identify each element of the arrangement. We allocate arrangement consideration to patent licenses received based on estimates of fair value, and capitalize these amounts as assets if the license will provide an on-going future benefit. See Note K - Commitments and Contingencies for discussion of our individual material legal proceedings. | |||||||||||||||||||||||||
Costs Associated with Exit Activities | |||||||||||||||||||||||||
We record employee termination costs in accordance with ASC Topic 712, Compensation - Nonretirement and Postemployment Benefits, if we pay the benefits as part of an on-going benefit arrangement, which includes benefits provided as part of our domestic severance policy or that we provide in accordance with international statutory requirements. We accrue employee termination costs associated with an on-going benefit arrangement if the obligation is attributable to prior services rendered, the rights to the benefits have vested, the payment is probable and we can reasonably estimate the liability. We account for employee termination benefits that represent a one-time benefit in accordance with ASC Topic 420, Exit or Disposal Cost Obligations. We record such costs into expense over the employee’s future service period, if any. Other costs associated with exit activities may include contract termination costs, including costs related to leased facilities to be abandoned or subleased, and impairments of long-lived assets, and are expensed in accordance with ASC Topic 420 and ASC Topic 360, Property, Plant, and Equipment. | |||||||||||||||||||||||||
Translation of Foreign Currency | |||||||||||||||||||||||||
We translate all assets and liabilities of foreign subsidiaries from local currency into U.S. dollars using the year-end exchange rate, and translate revenues and expenses at the average exchange rates in effect during the year. We show the net effect of these translation adjustments in our consolidated financial statements as a component of accumulated other comprehensive loss. For any significant foreign subsidiaries located in highly inflationary economies, we would re-measure their financial statements as if the functional currency were the U.S. dollar. We did not record any highly inflationary economy translation adjustments in 2013, 2012 or 2011. | |||||||||||||||||||||||||
Foreign currency transaction gains and losses are included in other, net in our consolidated statements of operations, net of losses and gains from any related derivative financial instruments. We recognized net foreign currency transaction losses of $11 million in 2013, $18 million in 2012, and $12 million in 2011. | |||||||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||
We recognize all derivative financial instruments in our consolidated financial statements at fair value in accordance with ASC Topic 815, Derivatives and Hedging, and we present assets and liabilities associated with our derivative financial instruments on a gross basis in our financial statements. In accordance with Topic 815, for those derivative instruments that are designated and qualify as hedging instruments, the hedging instrument must be designated, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. The accounting for changes in the fair value (i.e. gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. Our derivative instruments do not subject our earnings or cash flows to material risk, as gains and losses on these derivatives generally offset losses and gains on the item being hedged. We do not enter into derivative transactions for speculative purposes and we do not have any non-derivative instruments that are designated as hedging instruments pursuant to Topic 815. Refer to Note E – Fair Value Measurements for more information on our derivative instruments. | |||||||||||||||||||||||||
Shipping and Handling Costs | |||||||||||||||||||||||||
We generally do not bill customers for shipping and handling of our products. Shipping and handling costs of $97 million in 2013, $105 million in 2012, and $100 million in 2011 are included in selling, general and administrative expenses in the accompanying consolidated statements of operations. | |||||||||||||||||||||||||
Research and Development | |||||||||||||||||||||||||
We expense research and development costs, including new product development programs, regulatory compliance and clinical research as incurred. Refer to Indefinite-lived Intangibles, including In-Process Research and Development for our policy regarding in-process research and development acquired in connection with our business combinations and asset purchases. | |||||||||||||||||||||||||
Employee Retirement Plans | |||||||||||||||||||||||||
In connection with our 2006 acquisition of Guidant Corporation, we sponsor the Guidant Retirement Plan, a frozen noncontributory defined benefit plan covering a select group of current and former employees. The funding policy for the plan is consistent with U.S. employee benefit and tax-funding regulations. Plan assets, which are maintained in a trust, consist primarily of fixed-income instruments. Further, we sponsor the Guidant Supplemental Retirement Plan, a frozen, nonqualified defined benefit plan for certain former officers and employees of Guidant. The Guidant Supplemental Retirement Plan was funded through a Rabbi Trust that contains segregated company assets used to pay the benefit obligations related to the plan. In addition, certain current and former employees of Guidant are eligible to receive a portion of their healthcare retirement benefits under a frozen defined benefit plan. | |||||||||||||||||||||||||
In addition, we maintain an Executive Retirement Plan, a defined benefit plan covering executive officers and division presidents. Participants may retire with unreduced benefits once retirement conditions have been satisfied. We also maintain retirement plans covering certain international employees. | |||||||||||||||||||||||||
We use a December 31 measurement date for these plans and record the underfunded portion as a liability, recognizing changes in the funded status through other comprehensive income (OCI). The outstanding obligation as of December 31, 2013 and 2012 is as follows: | |||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||
(in millions) | Projected | Fair value of Plan Assets | Underfunded | Projected | Fair value of Plan Assets | Underfunded | |||||||||||||||||||
Benefit | PBO Recognized | Benefit | PBO Recognized | ||||||||||||||||||||||
Obligation (PBO) | Obligation (PBO) | ||||||||||||||||||||||||
Executive Retirement Plan | $ | 10 | $ | — | $ | 10 | $ | 13 | $ | — | $ | 13 | |||||||||||||
Guidant Retirement Plan (frozen) | 120 | 114 | 6 | 131 | 87 | 44 | |||||||||||||||||||
Guidant Supplemental Retirement Plan (frozen) | 31 | — | 31 | 34 | — | 34 | |||||||||||||||||||
Guidant Healthcare Retirement Benefit Plan (frozen) | 3 | — | 3 | 5 | — | 5 | |||||||||||||||||||
International Retirement Plans | 84 | 52 | 32 | 85 | 43 | 42 | |||||||||||||||||||
$ | 248 | $ | 166 | $ | 82 | $ | 268 | $ | 130 | $ | 138 | ||||||||||||||
The value of the Rabbi Trust assets used to pay the Guidant Supplemental Retirement Plan benefits included in our accompanying consolidated financial statements was approximately $17 million as of December 31, 2013 and $21 million as of December 31, 2012. | |||||||||||||||||||||||||
The critical assumptions associated with our employee retirement plans as of December 31, 2013 are as follows: | |||||||||||||||||||||||||
Expected Return | Long-Term | Rate of | |||||||||||||||||||||||
on Plan Assets | Healthcare | ||||||||||||||||||||||||
Discount | Cost | Compensation | |||||||||||||||||||||||
Rate | Trend Rate | Increase | |||||||||||||||||||||||
Executive Retirement Plan | 4.50% | 3.00% | |||||||||||||||||||||||
Guidant Retirement Plan (frozen) | 5.00% | 5.50% | |||||||||||||||||||||||
Guidant Supplemental Retirement Plan (frozen) | 4.75% | ||||||||||||||||||||||||
Guidant Healthcare Retirement Benefit Plan (frozen) | 1.00% - 2.00% | 5.00% | |||||||||||||||||||||||
International Retirement Plans | 0.75% - 3.70% | 2.75% - 4.10% | 3.00% | ||||||||||||||||||||||
We base our discount rate on the rates of return available on high-quality bonds with maturities approximating the expected period over which benefits will be paid. The rate of compensation increase is based on historical and expected rate increases. We review external data and historical trends in healthcare costs to determine healthcare cost trend rate assumptions. We base our rate of expected return on plan assets on historical experience, our investment guidelines and expectations for long-term rates of return. | |||||||||||||||||||||||||
A rollforward of the changes in the fair value of plan assets for our funded retirement plans during 2013 and 2012 is as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
(in millions) | 2013 | 2012 | |||||||||||||||||||||||
Beginning fair value | $ | 130 | $ | 115 | |||||||||||||||||||||
Actual return on plan assets | 25 | 11 | |||||||||||||||||||||||
Employer contributions | 32 | 20 | |||||||||||||||||||||||
Benefits paid | (15 | ) | (13 | ) | |||||||||||||||||||||
Net transfers in (out) | — | — | |||||||||||||||||||||||
Foreign currency exchange | (6 | ) | (3 | ) | |||||||||||||||||||||
Ending fair value | $ | 166 | $ | 130 | |||||||||||||||||||||
We also sponsor a voluntary 401(k) Retirement Savings Plan for eligible employees. We match 200 percent of employee elective deferrals for the first two percent of employee eligible compensation, and 50 percent of employee elective deferrals greater than two percent, but not exceeding six percent, of employee eligible compensation. Total expense for our matching contributions to the plan was $59 million in 2013, $63 million in 2012, and $65 million in 2011. | |||||||||||||||||||||||||
Net Income (Loss) per Common Share | |||||||||||||||||||||||||
We base net income (loss) per common share upon the weighted-average number of common shares and common stock equivalents outstanding during each year. Potential common stock equivalents are determined using the treasury stock method. We exclude stock options whose effect would be anti-dilutive from the calculation. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Acquisitions [Abstract] | ' | |||||||
ACQUISITIONS | ' | |||||||
ACQUISITIONS | ||||||||
Over the past three years, we have completed several acquisitions as part of our strategic initiatives, and have acquired technologies in the areas of cardiology, structural heart therapy, atrial fibrillation, peripheral vascular disease, hypertension, cardiac rhythm management, electrophysiology, endoscopic pulmonary intervention, and deep brain stimulation. | ||||||||
Our consolidated financial statements include the operating results for each acquired entity from its respective date of acquisition. We do not present pro forma financial information for these acquisitions given their results are not material to our consolidated financial statements. Transaction costs associated with these acquisitions were expensed as incurred and are not material for the years ended December 31, 2013, 2012 or 2011. | ||||||||
2013 Acquisition | ||||||||
On November 1, 2013, we completed the acquisition of the electrophysiology business of C.R. Bard Inc. (Bard EP), for $274 million in cash. We believe that this transaction adds a strong commercial team and complementary portfolio of ablation catheters, diagnostic tools, and electrophysiology recording systems, which we believe will allow us to better serve the global Electrophysiology market through a more comprehensive portfolio offering and sales infrastructure. | ||||||||
Purchase Price Allocation | ||||||||
We accounted for this acquisition as a business combination and, in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification® (ASC) Topic 805, Business Combinations, we have recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition date. The components of the aggregate preliminary purchase price for the acquisition consummated in 2013 are as follows (in millions): | ||||||||
Cash, net of cash acquired | $ | 274 | ||||||
Fair value of contingent consideration | — | |||||||
Fair value of prior interests | — | |||||||
Fair value of debt assumed | — | |||||||
$ | 274 | |||||||
Total consideration for the 2013 acquisition included initial $274 million of cash payments, net of cash acquired, at closing of the transaction. | ||||||||
The following summarizes the aggregate preliminary purchase price allocation for the 2013 acquisition as of December 31, 2013 (in millions): | ||||||||
Goodwill | $ | 140 | ||||||
Amortizable intangible assets | 112 | |||||||
Indefinite-lived intangible assets | — | |||||||
Other net assets | 19 | |||||||
Deferred income taxes | 3 | |||||||
$ | 274 | |||||||
We allocated a portion of the preliminary purchase price to specific intangible asset categories as of the respective acquisition dates as follows: | ||||||||
Amount | Weighted | Range of Risk- | ||||||
Assigned | Average | Adjusted Discount | ||||||
(in millions) | Amortization | Rates used in | ||||||
Period | Purchase Price | |||||||
(in years) | Allocation | |||||||
Amortizable intangible assets: | ||||||||
Technology-related | $ | 82 | 10 | 11.50% | ||||
Customer relationships | 30 | 7 | 11.50% | |||||
$ | 112 | |||||||
Our technology-related intangible assets consist of technical processes, intellectual property, and institutional understanding with respect to products and processes that we will leverage in future products or processes and will carry forward from one product generation to the next. We used the income approach to derive the fair value of the technology-related intangible assets, and are amortizing them on a straight-line basis over their assigned estimated useful lives. | ||||||||
Customer relationships represent the estimated fair value of the non-contractual customer and distributor relationships. Customer relationships are direct relationships with physicians and hospitals performing procedures with the acquired products, and distributor relationships are relationships with third parties used to sell products, both as of the acquisition date. These relationships were valued separately from goodwill as there is a history and pattern of conducting relationships with the customers and distributors on a contractual basis. We used the replacement cost and lost profits methodology to derive the fair value of the customer relationships. The customer relationships intangible assets are being amortized on a straight-line basis over their assigned estimated useful lives. | ||||||||
We believe that the estimated intangible asset values represent the fair value at the dates of acquisition and do not exceed the amount a third party would pay for the assets. These fair value measurements are based on significant unobservable inputs, including management estimates and assumptions and, accordingly, are classified as Level 3 within the fair value hierarchy prescribed by ASC Topic 820, Fair Value Measurements and Disclosures. | ||||||||
We recorded the excess of the aggregate purchase price over the estimated fair values of the identifiable assets acquired as goodwill, the majority of which is deductible for tax purposes. Goodwill was established due primarily to synergies expected to be gained from the integration of this business into our existing operations as well as revenue and cash flow projections associated with future technologies, and has been allocated to our reportable segments based on the relative expected benefit. See Note D - Goodwill and Other Intangible Assets for more information related to goodwill allocated to our reportable segments. | ||||||||
2012 Acquisitions | ||||||||
Cameron Health, Inc. | ||||||||
On June 8, 2012, we completed the acquisition of the remaining equity of Cameron Health, Inc. (Cameron). Cameron has developed the world's first and only commercially available subcutaneous implantable cardioverter defibrillator - the S-ICD® system. The S-ICD® system has received CE Mark approval and is sold in CE marked countries. In addition, in late September 2012, we received U.S. Food and Drug Administration (FDA) approval for the S-ICD® system, and commenced a limited commercial launch of this system in the United States during the fourth quarter of 2012. We are integrating the operations of the Cameron business into our CRM business. Total consideration includes an initial $150 million cash payment at closing of the transaction, a payment of $150 million upon FDA approval of the S-ICD® system and up to an additional $1.05 billion of potential payments upon achievement of specified revenue-based milestones over a six-year period following FDA approval. Due to our receipt of FDA approval of Cameron's S-ICD® system, we paid the related $150 million milestone payment to the former shareholders of Cameron during the fourth quarter of 2012. | ||||||||
BridgePoint Medical, Inc. | ||||||||
On October 4, 2012, we completed the acquisition of 100 percent of the fully diluted equity of BridgePoint Medical, Inc. (BridgePoint), a developer of catheter-based systems to treat coronary chronic total occlusions (CTOs). BridgePoint has the only U.S. approved crossing and re-entry system indicated for use in coronary CTOs. The system has also received CE Mark approval and TGA approval in Australia and is currently sold in Europe, Australia and the U.S. We have integrated the operations of the BridgePoint business into our Interventional Cardiology business. Total consideration includes an initial $20 million at closing of the transaction and up to an additional $90 million of revenue-based earnouts and milestones through 2016. | ||||||||
Rhythmia Medical, Inc. | ||||||||
On October 8, 2012, we completed the acquisition of 100 percent of the fully diluted equity of Rhythmia Medical, Inc. (Rhythmia). Rhythmia is a developer of next-generation mapping and navigation solutions for use in cardiac catheter ablations and other electrophysiology procedures, including atrial fibrillation and atrial flutter. We received CE Mark approval for the Rhythmia technology during the second quarter of 2013 and received FDA approval during July 2013. We are integrating the operations of the Rhythmia business into our Electrophysiology business. Total consideration includes an initial $90 million at closing of the transaction and up to an additional $175 million of regulatory and revenue-based milestones and revenue-based earnouts through 2017. | ||||||||
Vessix Vascular, Inc. | ||||||||
On November 19, 2012, we completed the acquisition of 100 percent of the fully diluted equity of Vessix Vascular, Inc. (Vessix). Vessix is a developer of a therapy to treat uncontrolled hypertension, or high blood pressure. The Vessix Vascular V2 Renal Denervation System™ has received CE Mark in Europe and TGA approval in Australia. Vessix has initiated the REDUCE-HTN post-market surveillance study and launched the product in CE Mark countries in 2013. We are integrating the operations of the Vessix business into our Peripheral Interventions business. Total consideration includes an initial $125 million at closing of the transaction and up to an additional $300 million of clinical and revenue-based milestones and revenue-based earnouts through 2016. | ||||||||
Purchase Price Allocation | ||||||||
The components of the aggregate purchase price for acquisitions consummated in 2012 are as follows (in millions): | ||||||||
Cash, net of cash acquired | $ | 367 | ||||||
Fair value of contingent consideration | 467 | |||||||
Fair value of prior interests | 79 | |||||||
Fair value of debt assumed | 9 | |||||||
$ | 922 | |||||||
Total consideration for the 2012 acquisitions included initial $367 million cash payments, net of cash acquired, at closing of the transactions, with potential payments of up to an additional $1.615 billion based upon achievement of certain regulatory- and commercialization-related milestones and revenue through 2018. As of the respective acquisition dates, we recorded total contingent consideration liabilities of $467 million, representing the estimated fair value of the contingent consideration we expected to pay to the former shareholders of the acquired companies. The fair value of the contingent consideration liabilities was estimated by discounting, to present value, contingent payments expected to be made. In certain circumstances, we utilized a probability-weighted approach or monte carlo revenue simulation model to determine the fair value of contingent consideration. | ||||||||
Prior to the acquisition of Cameron, we had an equity interest in Cameron and held $40 million of notes receivable. We re-measured our previously held investments to their estimated acquisition-date fair value of $79 million and recorded a gain of $39 million in other, net in the accompanying consolidated statements of operations during the second quarter of 2012. We measured the fair values of the previously held investments based on the liquidation preferences and priority of the equity interests and debt, including accrued interest. In addition, we prepaid the assumed debt obligation of Cameron for approximately $9 million during the second quarter of 2012. | ||||||||
The following summarizes the aggregate purchase price allocation for the 2012 acquisitions as of December 31, 2012 (in millions): | ||||||||
Goodwill (non-deductible for tax purposes) | $ | 566 | ||||||
Amortizable intangible assets | 189 | |||||||
Indefinite-lived intangible assets | 132 | |||||||
Other net assets | 15 | |||||||
Deferred income taxes | 20 | |||||||
$ | 922 | |||||||
We allocated a portion of the final purchase price to specific intangible asset categories as of the respective acquisition dates as follows: | ||||||||
Amount | Weighted | Range of Risk- | ||||||
Assigned | Average | Adjusted Discount | ||||||
(in millions) | Amortization | Rates used in | ||||||
Period | Purchase Price | |||||||
(in years) | Allocation | |||||||
Amortizable intangible assets: | ||||||||
Technology-related | $ | 187 | 8 | 14% to 28% | ||||
Customer relationships | 2 | 5 | 14% | |||||
Indefinite-lived intangible assets: | ||||||||
In-process research and development | 132 | 14% to 28% | ||||||
$ | 321 | |||||||
Our technology-related intangible assets consist of technical processes, intellectual property, and institutional understanding with respect to products and processes that we will leverage in future products or processes and will carry forward from one product generation to the next. The technology-related intangible assets are being amortized on a straight-line basis over their assigned estimated useful lives. In-process research and development represents the estimated fair value of acquired in-process research and development projects which have not yet reached technological feasibility. | ||||||||
2011 Acquisitions | ||||||||
Sadra Medical, Inc. | ||||||||
On January 4, 2011, we completed the acquisition of the remaining fully diluted equity of Sadra Medical, Inc. (Sadra). Prior to the acquisition, we held a 14 percent equity ownership in Sadra. Sadra is developing a fully repositionable and retrievable device for transcatheter aortic valve replacement (TAVR) to treat patients with severe aortic stenosis. The Lotus™ Valve System consists of a stent-mounted tissue valve prosthesis and catheter delivery system for guidance and placement of the valve. The low-profile delivery system and introducer sheath are designed to enable accurate positioning, repositioning and retrieval at any time prior to release of the aortic valve implant. The acquisition was intended to broaden and diversify our product portfolio by expanding into the structural heart market. In October 2013, we received CE Mark approval and launched the Lotus™ Valve System in Europe. We have integrated the operations of the Sadra business into our Interventional Cardiology business. Total consideration included a net cash payment of $193 million at closing to acquire the remaining 86 percent of Sadra and certain regulatory- and revenue-based milestones. | ||||||||
Intelect Medical, Inc. | ||||||||
On January 5, 2011, we completed the acquisition of the remaining fully diluted equity of Intelect Medical, Inc. (Intelect). Prior to the acquisition, we held a 15 percent equity ownership in Intelect. Intelect is developing advanced visualization and programming technology for deep-brain stimulation. We have integrated the operations of the Intelect business into our Neuromodulation business. The acquisition was intended to leverage the core architecture of the VerciseTM platform and advance our technology in the field of deep-brain stimulation. In May 2013, we received CE Mark approval for the GUIDETM DBS System. We paid $60 million at the closing of the transaction using cash on hand to acquire the remaining 85 percent of Intelect. There is no contingent consideration related to the Intelect acquisition. | ||||||||
ReVascular Therapeutics, Inc. | ||||||||
On February 15, 2011, we completed the acquisition of 100 percent of the fully diluted equity of ReVascular Therapeutics, Inc. (RVT). RVT has developed the TRUEPATH™ intraluminal chronic total occlusion crossing device enabling endovascular treatment in cases that typically cannot be treated with standard endovascular devices. This acquisition complements our portfolio of devices for lower extremity peripheral artery disease and we have integrated the operations of RVT into our Peripheral Interventions business. Total consideration included a cash payment of $19 million at closing of the transaction and potential payments of up to $16 million through 2014 that are contingent upon the achievement of certain regulatory- and commercialization-based milestones and revenue. | ||||||||
Atritech, Inc. | ||||||||
On March 3, 2011, we completed the acquisition of 100 percent of the fully diluted equity of Atritech, Inc. (Atritech). Atritech has developed a device designed to close the left atrial appendage of the heart. The WATCHMAN® Left Atrial Appendage Closure Technology, developed by Atritech, is the first device proven to offer an alternative to anticoagulant drugs for patients with atrial fibrillation and at high risk for stroke, and is marketed in CE Mark countries. The acquisition was intended to broaden our portfolio of less-invasive devices for cardiovascular care by expanding into the areas of atrial fibrillation and structural heart therapy. We have integrated the operations of the Atritech business and are leveraging expertise from both our Electrophysiology and Interventional Cardiology divisions in the commercialization of the WATCHMAN® device. Total consideration included a net cash payment of $98 million at closing of the transaction and potential payments up to $275 million through 2015 that are contingent upon achievement of certain regulatory-based milestones and revenue. | ||||||||
Purchase Price Allocation | ||||||||
The components of the aggregate purchase price as of the acquisition date for acquisitions consummated in 2011 are as follows (in millions): | ||||||||
Cash, net of cash acquired | $ | 370 | ||||||
Fair value of contingent consideration | 287 | |||||||
Prior investments | 55 | |||||||
$ | 712 | |||||||
Prior to our acquisition of the remaining equity ownership in Sadra and Intelect, we held equity interests in these companies of 14 percent and 15 percent, respectively, carried at an aggregate value of $11 million, and a note receivable carried at a value of $6 million. As a result of re-measuring these previously held investments to fair value, estimated at $55 million as of the respective acquisition dates, we recorded a gain of $38 million in other, net in the accompanying consolidated statements of operations during the first quarter of 2011. We measured the fair values of the previously held investments based on a pro-rata allocation of the consideration paid for the controlling interests acquired less an estimated minority interest discount in certain circumstances after considering previous financing rounds and liquidation preferences of the equity interests. | ||||||||
The following summarizes the aggregate purchase price allocation for the 2011 acquisitions (in millions): | ||||||||
Goodwill (non-deductible for tax purposes) | $ | 266 | ||||||
Amortizable intangible assets | 97 | |||||||
Indefinite-lived intangible assets | 470 | |||||||
Deferred income taxes | (121 | ) | ||||||
$ | 712 | |||||||
We allocated the aggregate purchase price to specific intangible asset categories as follows: | ||||||||
Amount | Weighted | Range of Risk- | ||||||
Assigned | Average | Adjusted Discount | ||||||
(in millions) | Amortization | Rates used in | ||||||
Period | Purchase Price | |||||||
(in years) | Allocation | |||||||
Amortizable intangible assets | ||||||||
Technology-related | $ | 97 | 7 | 23% - 25% | ||||
Indefinite-lived intangible assets | ||||||||
Purchased research and development | 470 | 23% - 30% | ||||||
$ | 567 | |||||||
Contingent Consideration | ||||||||
Certain of our acquisitions involve contingent consideration arrangements. Payment of additional consideration is generally contingent on the acquired company reaching certain performance milestones, including attaining specified revenue levels, achieving product development targets or obtaining regulatory approvals. In accordance with U.S. GAAP, we recognize a liability equal to the fair value of the contingent payments we expect to make as of the acquisition date. We re-measure this liability each reporting period and record changes in the fair value through a separate line item within our consolidated statements of operations. | ||||||||
Changes in our contingent consideration liability were as follows (in millions): | ||||||||
Balance as of December 31, 2011 | $ | (358 | ) | |||||
Amounts recorded related to new acquisitions | (467 | ) | ||||||
Other amounts recorded related to prior acquisitions | 2 | |||||||
Net fair value adjustments | 6 | |||||||
Payments made | 154 | |||||||
Balance as of December 31, 2012 | $ | (663 | ) | |||||
Amounts recorded related to new acquisitions | — | |||||||
Other amounts recorded related to prior acquisitions | 1 | |||||||
Net fair value adjustments | (4 | ) | ||||||
Payments made | 165 | |||||||
Balance as of December 31, 2013 | $ | (501 | ) | |||||
As of December 31, 2013, the maximum amount of future contingent consideration (undiscounted) that we could be required to make associated with our acquisitions is approximately $2.1 billion. | ||||||||
Increases or decreases in the fair value of our contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing and amount of revenue estimates or in the timing or likelihood of achieving regulatory-, revenue- or commercialization-based milestones. The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs: | ||||||||
Contingent Consideration Liability | Fair Value as of December 31, 2013 | Valuation Technique | Unobservable Input | Range | ||||
R&D, Regulatory and Commercialization-based Milestones | $84 million | Probability Weighted Discounted Cash Flow | Discount Rate | 0.8% - 1.0% | ||||
Probability of Payment | 85% | |||||||
Projected Year of Payment | 2014 | |||||||
Revenue-based Payments | $126 million | Discounted Cash Flow | Discount Rate | 12% - 15% | ||||
Probability of Payment | 0% - 100% | |||||||
Projected Year of Payment | 2014 - 2017 | |||||||
$291 million | Monte Carlo | Revenue Volatility | 13% - 26% | |||||
Risk Free Rate | LIBOR Term Structure | |||||||
Projected Year of Payment | 2014-2018 | |||||||
Contingent consideration liabilities are remeasured to fair value each reporting period using projected revenues, discount rates, probabilities of payment and projected payment dates. Projected contingent payment amounts related to R&D, regulatory- and commercialization-based milestones and certain revenue-based milestones are discounted back to the current period using a discounted cash flow model. Other revenue-based payments are valued using a monte carlo valuation model, which simulates future revenues during the earn out-period using management's best estimates. Projected revenues are based on our most recent internal operational budgets and long-range strategic plans. Increases in projected revenues and probabilities of payment may result in higher fair value measurements. Increases in discount rates and the time to payment may result in lower fair value measurements. Increases or decreases in any of those inputs in isolation may result in a significantly lower or higher fair value measurement. |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2013 | |
Divestitures and Assets Held for Sale [Abstract] | ' |
DIVESTITURES | ' |
DIVESTITURES | |
In January 2011, we closed the sale of our Neurovascular business to Stryker Corporation for a purchase price of $1.500 billion in cash. We received $1.450 billion during 2011, including an upfront payment of $1.426 billion, and $24 million which was placed into escrow and released throughout 2011 upon the completion of local closings in certain foreign jurisdictions. We received an additional $10 million during 2012, $30 million during the second quarter of 2013 and we received the final $10 million of consideration in January 2014. Due to our continuing involvement in the operations of the Neurovascular business following the divestiture, the divestiture did not meet the criteria for presentation as a discontinued operation. We recorded a gain of $38 million ($26 million after-tax) during 2013, a gain of $15 million ($12 million after tax) during 2012 and a gain of $778 million ($545 million after-tax) during 2011 associated with the transaction. | |
We recorded revenue related to the Neurovascular business following its divestiture of $58 million in 2013, $122 million in 2012 and $141 million in 2011. Our sales related to our divested Neurovascular business have declined as the various transition services and supply agreements have terminated. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Goodwill and Other Intangible Assets [Abstract] | ' | ||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | ||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||
The gross carrying amount of goodwill and other intangible assets and the related accumulated amortization for intangible assets subject to amortization and accumulated write-offs of goodwill as of December 31, 2013 and 2012 is as follows: | |||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||||
Amortization/ | Amortization/ | ||||||||||||||||
(in millions) | Amount | Write-offs | Amount | Write-offs | |||||||||||||
Amortizable intangible assets | |||||||||||||||||
Technology-related | $ | 8,272 | $ | (3,342 | ) | $ | 8,020 | $ | (3,005 | ) | |||||||
Patents | 513 | (326 | ) | 559 | (352 | ) | |||||||||||
Other intangible assets | 845 | (479 | ) | 810 | (428 | ) | |||||||||||
$ | 9,630 | $ | (4,147 | ) | $ | 9,389 | $ | (3,785 | ) | ||||||||
Unamortizable intangible assets | |||||||||||||||||
Goodwill | $ | 15,593 | $ | (9,900 | ) | $ | 15,450 | $ | (9,477 | ) | |||||||
Technology-related | 197 | 242 | |||||||||||||||
$ | 15,790 | $ | (9,900 | ) | $ | 15,692 | $ | (9,477 | ) | ||||||||
In addition, we had $270 million and $443 million of in-process research and development intangible assets as of December 31, 2013 and December 31, 2012, respectively. During the third quarter of 2013, we reclassified approximately $45 million of core technology not previously subject to amortization to amortizable intangible assets due to projected changes in the market for this technology. We tested the intangible asset for impairment prior to this reclassification and determined that the asset was not impaired. | |||||||||||||||||
2013 Reorganization | |||||||||||||||||
We assess goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a component. Effective as of January 1, 2013, we reorganized our business from geographic regions to fully operationalized global business units. Our reorganization changed our reporting structure and changed the composition of our reporting units for goodwill impairment testing purposes. Following the reorganization, based on information regularly reviewed by our chief operating decision maker, we have three new global reportable segments consisting of: Cardiovascular, Rhythm Management, and MedSurg. We determined our new global reporting units by identifying our operating segments and assessing whether any components of these segments constituted a business for which discrete financial information is available and whether segment management regularly reviews the operating results of any components. Through this process, we identified the following new global reporting units effective as of January 1, 2013: Interventional Cardiology, Peripheral Interventions, Cardiac Rhythm Management, Electrophysiology, Endoscopy, Urology and Women's Health, and Neuromodulation. The discussion below for 2013 relates to our global business reporting units and for 2012 and prior periods, relates to our former regional reporting units. For our 2012 and 2011 assessments, we identified (i) six reporting units within the U.S., which included our CRM, Neuromodulation, Endoscopy, Urology and Women's Health, Electrophysiology, and Cardiovascular (consisting of Interventional Cardiology and Peripheral Interventions) franchises, and (ii) four international reporting units, including EMEA, Japan, Asia Pacific and the Americas. | |||||||||||||||||
To determine the amount of goodwill within our new global reporting units, on a relative fair value basis we reallocated $1.764 billion of goodwill previously allocated to our former Europe, Middle East and Africa (EMEA), Asia Pacific, Japan, and Americas international reporting units to our new global reporting units. In addition, we reallocated the goodwill previously allocated to the former U.S. divisional reporting units to each respective new global reporting unit, with the exception of the goodwill allocated to the former U.S. Cardiovascular reporting unit. The $2.380 billion of goodwill allocated to the former U.S. Cardiovascular reporting unit was reallocated between the new global Interventional Cardiology and global Peripheral Interventions reporting units on a relative fair value basis. | |||||||||||||||||
The following represents our goodwill balance by new global reportable segment. We restated the prior period information to conform to the current presentation: | |||||||||||||||||
(in millions) | Cardiovascular | Rhythm Management | MedSurg | Total | |||||||||||||
Balance as of December 31, 2011 | $ | 4,542 | $ | 1,661 | $ | 3,558 | $ | 9,761 | |||||||||
Purchase price adjustments | — | (1 | ) | — | (1 | ) | |||||||||||
Goodwill acquired | 186 | 327 | 50 | 563 | |||||||||||||
Goodwill written off | (1,479 | ) | (1,410 | ) | (1,461 | ) | (4,350 | ) | |||||||||
Balance as of December 31, 2012 | $ | 3,249 | $ | 577 | $ | 2,147 | $ | 5,973 | |||||||||
Purchase price adjustments | 3 | — | — | 3 | |||||||||||||
Goodwill acquired | — | 140 | — | 140 | |||||||||||||
Goodwill written off | — | (423 | ) | — | (423 | ) | |||||||||||
Balance as of December 31, 2013 | $ | 3,252 | $ | 294 | $ | 2,147 | $ | 5,693 | |||||||||
The 2012 and 2013 purchase price adjustments relate primarily to adjustments in taxes payable and deferred income taxes, including changes in the liability for unrecognized tax benefits. | |||||||||||||||||
Goodwill Impairment Testing and Charges | |||||||||||||||||
2013 Charges | |||||||||||||||||
We test our goodwill balances during the second quarter of each year for impairment, or more frequently if indicators are present or changes in circumstances suggest that impairment may exist. Following our reorganization from regions to global business units and our reallocation of goodwill on a relative fair value basis, we conducted the first step of the goodwill impairment test for all new global reporting units as of January 1, 2013. The first step requires a comparison of the carrying value of the reporting units to the fair value of these units. The fair value of each new global reporting unit exceeded its carrying value, with the exception of the global CRM reporting unit. The global CRM reporting unit carrying value exceeded its fair value primarily due to the carrying value of its amortizable intangible assets. The carrying value of amortizable intangible assets allocated to the global CRM reporting unit was $4.636 billion as of January 1, 2013. In accordance with ASC Topic 350, Intangibles—Goodwill and Other, we tested the global CRM amortizable intangible assets for impairment in conjunction with the interim goodwill impairment test of our global CRM reporting unit. We performed the impairment analysis of the amortizable intangible assets on an undiscounted cash flow basis, and concluded that these assets were not impaired. | |||||||||||||||||
The second step of the goodwill impairment test compares the estimated fair value of a reporting unit’s goodwill to its carrying value. We performed the second step of the goodwill impairment test on the global CRM reporting unit and recorded a non-cash goodwill impairment charge of $423 million ($421 million after-tax) to write-down the goodwill to its implied fair value as of January 1, 2013. The primary driver of this impairment charge was our reorganization from geographic regions to global business units as of January 1, 2013, which changed the composition of our reporting units. As a result of the reorganization, any goodwill allocated to the global CRM reporting unit was no longer supported by the cash flows of other businesses. Under our former reporting unit structure, the goodwill allocated to our regional reporting units was supported by the cash flows from all businesses in each international region. The hypothetical tax structure of the global CRM business and the global CRM business discount rate applied were also contributing factors to the goodwill impairment charge. We finalized the second step of the global CRM goodwill impairment test during the second quarter of 2013, in accordance with ASC Topic 350, Intangibles-Goodwill and Other, and determined that no adjustments to the charge were required. After recording the impairment charge in the first quarter of 2013, there was no remaining goodwill allocated to the global CRM reporting unit. | |||||||||||||||||
The goodwill impairment charge taken during the first quarter of 2013 was determined on a global CRM basis pursuant to our new organizational structure. We used the income approach, specifically the DCF method, to derive the fair value of the global CRM reporting unit. We completed a DCF model associated with our new global CRM business, including the amount and timing of future expected cash flows, tax attributes, the terminal value growth rate of approximately two percent and the appropriate market-participant risk-adjusted weighted average cost of capital (WACC) of approximately 12 percent. | |||||||||||||||||
In the second quarter of 2013, we performed our annual goodwill impairment test for all of our reporting units. In conjunction with our annual test, the fair value of each reporting unit exceeded its carrying value except CRM, for which no goodwill remains. Therefore, it was deemed not necessary to proceed to the second step of the impairment test. We have identified our global Neuromodulation reporting unit as being at higher risk of potential failure of the first step of the goodwill impairment test in future reporting periods. Our global Neuromodulation reporting unit holds $1.356 billion of allocated goodwill. The level of excess fair value over carrying value for this reporting unit identified during our annual goodwill impairment test was approximately 16 percent. Future changes in our reporting units or in the structure of our business as a result of future reorganizations, acquisitions or divestitures of assets or businesses could result in future impairments of goodwill within our reporting units including global CRM. Further, the recoverability of our CRM-related amortizable intangibles ($4.374 billion globally as of December 31, 2013) is sensitive to future cash flow assumptions and our global CRM business performance. The $4.374 billion of CRM-related amortizable intangibles are at higher risk of potential failure of the first step of the amortizable intangible recoverability test in future reporting periods. An impairment of a material portion of our CRM-related amortizable intangibles carrying value would occur if the second step of the amortizable intangible test is required in a future reporting period. Refer to Critical Accounting Policies and Estimates within our Management's Discussion and Analysis of Financial Condition and Results of Operations contained in Item 7 of this Annual Report on Form 10-K for a discussion of key assumptions used in our testing. | |||||||||||||||||
On a quarterly basis, we monitor the key drivers of fair value to detect events or other changes that would warrant an interim impairment test of our goodwill and intangible assets. The key variables that drive the cash flows of our reporting units and amortizable intangibles are estimated revenue growth rates and levels of profitability. Terminal value growth rate assumptions, as well as the WACC rate applied are additional key variables for reporting unit cash flows. These assumptions are subject to uncertainty, including our ability to grow revenue and improve profitability levels. Relatively small declines in the future performance and cash flows of a reporting unit or asset group or small changes in other key assumptions may result in the recognition of significant asset impairment charges. For example, keeping all other variables constant, an increase in the WACC applied of 80 basis points or a 200 basis point decrease in the terminal value growth rate would require that we perform the second step of the goodwill impairment test for the global Neuromodulation reporting unit. The estimates used for our future cash flows and discount rates represent management's best estimates, which we believe to be reasonable, but future declines in business performance may impair the recoverability of our goodwill and intangible asset balances. | |||||||||||||||||
Future events that could have a negative impact on the levels of excess fair value over carrying value of our reporting units and/or amortizable intangible assets include, but are not limited to: | |||||||||||||||||
• | decreases in estimated market sizes or market growth rates due to greater-than-expected declines in procedural volumes, pricing pressures, reductions in reimbursement levels, product actions, and/or competitive or disruptive technology developments; | ||||||||||||||||
• | declines in our market share and penetration assumptions due to increased competition, an inability to develop or launch new and next-generation products and technology features in line with our commercialization strategies, and market and/or regulatory conditions that may cause significant launch delays or product recalls; | ||||||||||||||||
• | decreases in our forecasted profitability due to an inability to successfully implement and achieve timely and sustainable cost improvement measures consistent with our expectations, increases in our market-participant tax rate, and/or changes in tax laws; | ||||||||||||||||
• | negative developments in intellectual property litigation that may impact our ability to market certain products or increase our costs to sell certain products; | ||||||||||||||||
• | the level of success of on-going and future research and development efforts, including those related to recent acquisitions, and increases in the research and development costs necessary to obtain regulatory approvals and launch new products; | ||||||||||||||||
• | the level of success in managing the growth of acquired companies, achieving sustained profitability consistent with our expectations, establishing government and third-party payer reimbursement, supplying the market, and increases in the costs and time necessary to integrate acquired businesses into our operations successfully; | ||||||||||||||||
• | changes in our reporting units or in the structure of our business as a result of future reorganizations, acquisitions or divestitures of assets or businesses; and | ||||||||||||||||
• | increases in our market-participant risk-adjusted WACC. | ||||||||||||||||
Negative changes in one or more of these factors, among others, could result in additional impairment charges. | |||||||||||||||||
2012 Charges | |||||||||||||||||
In the second quarter of 2012, we performed our annual goodwill impairment test for all of our reporting units and concluded that the goodwill within our former EMEA reporting unit was impaired and recorded a charge of $3.602 billion ($3.579 billion after-tax). As a result of revised estimates developed during our annual strategic planning process and analysis performed in conjunction with our annual goodwill impairment test, we concluded that the revenue growth rates projected for the EMEA reporting unit were slightly lower than our previous estimates primarily driven by macro-economic factors and our performance in the European market. We updated short-term operating projections based on our most recent strategic plan for EMEA prepared by management. We reduced the EMEA long-term growth rates and terminal value growth rate projections and increased the discount rate within our 15-year DCF model for EMEA by approximately 100 basis points due to increased risk associated with our projections in this market primarily as a result of economic uncertainty in Europe. In addition, our expectations for future growth and profitability were lowered as compared to our previous estimates and reflected declines in average selling prices and volume pressures due to austerity measures. We finalized the second step of the EMEA goodwill impairment test during the third quarter of 2012, in accordance with ASC Topic 350, Intangibles-Goodwill and Other, and there were no adjustments to the charge upon finalization. | |||||||||||||||||
In the third quarter of 2012, we performed an interim goodwill impairment test and recorded a non-cash $748 million (pre- and after-tax) charge associated with our former U.S. Cardiac Rhythm Management (U.S. CRM) reporting unit, primarily driven by a reduction in the estimated size of the U.S. CRM market, related adjustments to our business and other competitive factors, which led to lower projected U.S. CRM results compared to prior forecasts. The U.S. CRM market is dynamic, highly competitive and difficult to forecast; in the third quarter of 2012, we lowered our projections for the U.S. CRM market size and our future revenue levels within this market, primarily to reflect changes in expectations of average selling prices and unit growth, adjustments to our business and other competitive factors. The increased pricing pressure and lower unit volumes were primarily due to physician alignment with hospitals, efforts to reduce health care costs, focus on appropriate device usage, replacement volumes and competition, and were more impactful to the U.S. CRM business than previously estimated. In addition, we adjusted certain elements of our business and shifted investments to focus on areas expected to provide the highest future growth and financial return. As a result of these factors, we reduced the compound annual revenue growth rate of our 15 year DCF model for the U.S. CRM reporting unit by approximately 250 basis points. We finalized the second step of the U.S. CRM goodwill impairment test during the fourth quarter of 2012, in accordance with ASC Topic 350, Intangibles-Goodwill and Other, and there were no adjustments to the charge upon finalization. | |||||||||||||||||
2011 Charge | |||||||||||||||||
Based on market information that became available to us toward the end of the first quarter of 2011, we concluded that there was a reduction in the estimated size of the U.S. ICD market, which led to lower projected U.S. CRM results compared to prior forecasts and created an indication of potential impairment of the goodwill balance attributable to our former U.S. CRM business unit. Therefore, we performed an interim impairment test in accordance with U.S. GAAP and our accounting policies and recorded a non-deductible goodwill impairment charge of $697 million, on both a pre-tax and after-tax basis, associated with this business unit during the first quarter of 2011. | |||||||||||||||||
The following is a rollforward of accumulated goodwill write-offs by global reportable segment: | |||||||||||||||||
(in millions) | Cardiovascular | Rhythm Management | MedSurg | Total | |||||||||||||
Accumulated write-offs as of December 31, 2011 | $ | — | $ | (5,127 | ) | $ | — | (5,127 | ) | ||||||||
Goodwill written off | (1,479 | ) | (1,410 | ) | (1,461 | ) | (4,350 | ) | |||||||||
Accumulated write-offs as of December 31, 2012 | $ | (1,479 | ) | $ | (6,537 | ) | (1,461 | ) | $ | (9,477 | ) | ||||||
Goodwill written off | — | (423 | ) | — | (423 | ) | |||||||||||
Accumulated write-offs as of December 31, 2013 | $ | (1,479 | ) | $ | (6,960 | ) | $ | (1,461 | ) | $ | (9,900 | ) | |||||
Intangible Asset Impairment Charges | |||||||||||||||||
On a quarterly basis, we monitor for events or other potential indicators of impairment that would warrant an interim impairment test of our intangible assets. The recoverability of our CRM-related amortizable intangibles ($4.374 billion globally as of December 31, 2013) are sensitive to changes in future cash flow assumptions and our global CRM business performance. The $4.374 billion of CRM-related amortizable intangibles are at higher risk of potential failure of the first step of the amortizable intangible recoverability test in future reporting periods. An impairment of a material portion of our CRM-related amortizable intangibles carrying value would occur if the second step of the amortizable intangible test is required in a future reporting period. See Goodwill Impairment Charges above for discussion of future events that could have a negative impact on the levels of excess fair value over carrying value of our CRM-related amortizable intangible assets. | |||||||||||||||||
2013 Charges | |||||||||||||||||
During the third quarter of 2013, we performed our annual impairment test of all in-process research and development projects, and our indefinite lived core technology assets, and recorded no impairments based on the results of our testing. | |||||||||||||||||
During the second quarter of 2013 as a result of revised estimates developed in conjunction with our annual strategic planning process and annual goodwill impairment test, we performed an interim impairment test of our in-process research and development projects associated with certain of our acquisitions. Based on the results of our impairment analyses, we revised our expectations of the market size related to Sadra Medical, Inc. (Sadra), and the resulting timing and amount of future revenue and cash flows associated with the technology acquired from Sadra. As a result of these changes, we recorded pre-tax impairment charges of $51 million to write-down the balance of these intangible assets to their fair value during the second quarter of 2013. During the second quarter of 2013, we also recorded an additional $2 million intangible asset impairment charge associated with changes in the amount of the expected cash flows related to certain other acquired in-process research and development projects. | |||||||||||||||||
In-process research and development fair value is measured using projected revenues, projected expenses, discount rates, and | |||||||||||||||||
probability of expected launch. The nonrecurring Level 3 fair value measurements of the impairment analysis performed in the second quarter of 2013 included the following significant unobservable inputs: | |||||||||||||||||
Intangible Asset | Fair Value as of Second Quarter 2013 | Valuation Technique | Unobservable Input | Rate | |||||||||||||
In-Process R&D | $178 million | Income Approach - Excess Earnings Method | Discount Rate | 16.50% | |||||||||||||
2012 Charges | |||||||||||||||||
During the third quarter of 2012, we performed our annual impairment test of all in-process research and development projects, and our indefinite lived core technology assets. Based on the results of our annual test, we recorded total impairment charges of $13 million ($10 million after-tax) to write-down the balances of certain in-process projects to their fair value. These charges were primarily due to increased expectations in the cost to bring an in-process project to market in a certain geographic region and lower future revenue expectations associated with an in-process project. | |||||||||||||||||
In-process research and development fair value is measured using projected revenues, projected expenses, discount rates, and probability of expected launch. The nonrecurring Level 3 fair value measurements of the impairment charges taken in the third quarter of 2012 included the following significant unobservable inputs: | |||||||||||||||||
Intangible Asset | Fair Value as of Third Quarter 2012 | Valuation Technique | Unobservable Input | Range | |||||||||||||
In-Process R&D | $26 million | Income Approach - Excess Earnings Method | Discount Rate | 20%-25% | |||||||||||||
During the second quarter of 2012, as a result of revised estimates developed in conjunction with our annual strategic planning process and annual goodwill impairment test, we performed an interim impairment test of our in-process research and development projects associated with our acquisition of Sadra Medical, Inc. Based on our impairment analysis, we revised our expectations of the required effort, time and cost involved in completing the in-process projects and bringing the related products to market. As a result of these changes, we recorded an impairment charge of $129 million ($110 million after-tax) to write-down the balance of these intangible assets to their fair value during the second quarter of 2012. | |||||||||||||||||
The nonrecurring Level 3 fair value measurements of the impairment charges taken in the second quarter of 2012 included the following significant unobservable inputs: | |||||||||||||||||
Intangible Asset | Fair Value as of Second Quarter 2012 | Valuation Technique | Unobservable Input | Range | |||||||||||||
In-Process R&D | $184 million | Income Approach - Excess Earnings Method | Discount Rate | 20% | |||||||||||||
2011 Charges | |||||||||||||||||
During the third quarter of 2011, we recorded a $9 million intangible asset impairment charge attributable to lower projected cash flows associated with certain technologies. During the second quarter of 2011, we recorded a $12 million intangible asset impairment charge associated with changes in the timing and amount of the expected cash flows related to certain in-process research and development projects. | |||||||||||||||||
The intangible asset category and associated write downs recorded in 2013, 2012 and 2011 were as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||||||
Technology-related | $ | — | $ | — | $ | 9 | |||||||||||
Purchased research and development | 53 | 142 | 12 | ||||||||||||||
$ | 53 | 142 | $ | 21 | |||||||||||||
Estimated amortization expense for each of the five succeeding fiscal years based upon our intangible asset portfolio as of December 31, 2013 is as follows: | |||||||||||||||||
Estimated Amortization Expense | |||||||||||||||||
Fiscal Year | (in millions) | ||||||||||||||||
2014 | $ | 433 | |||||||||||||||
2015 | 441 | ||||||||||||||||
2016 | 441 | ||||||||||||||||
2017 | 440 | ||||||||||||||||
2018 | 441 | ||||||||||||||||
Our technology-related intangible assets that are not subject to amortization represent technical processes, intellectual property and/or institutional understanding acquired through business combinations that are fundamental to the on-going operations of our business and have no limit to their useful life. Our technology-related intangible assets that are not subject to amortization are comprised primarily of certain acquired balloon and other technology, which is foundational to our continuing operations within the Cardiovascular market and other markets within interventional medicine. We assess our indefinite-lived intangible assets at least annually for impairment and reassess their classification as indefinite-lived assets. We assess qualitative factors to determine whether the existence of events and circumstances indicate that it is more likely than not that our indefinite-lived intangible assets are impaired. If we conclude that it is more likely than not that the asset is impaired, we then determine the fair value of the intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying value in accordance with ASC Topic 350, Intangibles-Goodwill and Other. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ' | |||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ||||||||||||||||||||||||||||||||
We develop, manufacture and sell medical devices globally and our earnings and cash flows are exposed to market risk from changes in foreign currency exchange rates and interest rates. We address these risks through a risk management program that includes the use of derivative financial instruments, and operate the program pursuant to documented corporate risk management policies. We recognize all derivative financial instruments in our consolidated financial statements at fair value in accordance with ASC Topic 815, Derivatives and Hedging. In accordance with Topic 815, for those derivative instruments that are designated and qualify as hedging instruments, the hedging instrument must be designated, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. The accounting for changes in the fair value (i.e. gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. Our derivative instruments do not subject our earnings or cash flows to material risk, as gains and losses on these derivatives generally offset losses and gains on the item being hedged. We do not enter into derivative transactions for speculative purposes and we do not have any non-derivative instruments that are designated as hedging instruments pursuant to Topic 815. | ||||||||||||||||||||||||||||||||
Currency Hedging | ||||||||||||||||||||||||||||||||
We are exposed to currency risk consisting primarily of foreign currency denominated monetary assets and liabilities, forecasted foreign currency denominated intercompany and third-party transactions and net investments in certain subsidiaries. We manage our exposure to changes in foreign currency exchange rates on a consolidated basis to take advantage of offsetting transactions. We use both derivative instruments (currency forward and option contracts), and non-derivative transactions (primarily European manufacturing and distribution operations) to reduce the risk that our earnings and cash flows associated with these foreign currency denominated balances and transactions will be adversely affected by foreign currency exchange rate changes. | ||||||||||||||||||||||||||||||||
Designated Foreign Currency Hedges | ||||||||||||||||||||||||||||||||
All of our designated currency hedge contracts outstanding as of December 31, 2013 and December 31, 2012 were cash flow hedges under Topic 815 intended to protect the U.S. dollar value of our forecasted foreign currency denominated transactions. We record the effective portion of any change in the fair value of foreign currency cash flow hedges in other comprehensive income until the related third-party transaction occurs. Once the related third-party transaction occurs, we reclassify the effective portion of any related gain or loss on the foreign currency cash flow hedge to earnings. In the event the hedged forecasted transaction does not occur, or it becomes no longer probable that it will occur, we reclassify the amount of any gain or loss on the related cash flow hedge to earnings at that time. We had currency derivative instruments designated as cash flow hedges outstanding in the contract amount of $2.564 billion as of December 31, 2013 and $2.469 billion as of December 31, 2012. | ||||||||||||||||||||||||||||||||
We recognized net gains of $36 million during 2013 on our cash flow hedges, as compared to $39 million of net losses during 2012, and $95 million of net losses during 2011. All currency cash flow hedges outstanding as of December 31, 2013 mature within 36 months. As of December 31, 2013, $139 million of net gains, net of tax, were recorded in accumulated other comprehensive income (AOCI) to recognize the effective portion of the fair value of any currency derivative instruments that are, or previously were, designated as foreign currency cash flow hedges, as compared to net gains of $31 million as of December 31, 2012. As of December 31, 2013, $75 million of net gains, net of tax, may be reclassified to earnings within the next twelve months. | ||||||||||||||||||||||||||||||||
The success of our hedging program depends, in part, on forecasts of transaction activity in various currencies (primarily Japanese yen, Euro, British pound sterling, Australian dollar and Canadian dollar). We may experience unanticipated currency exchange gains or losses to the extent that there are differences between forecasted and actual activity during periods of currency volatility. In addition, changes in foreign currency exchange rates related to any unhedged transactions may impact our earnings and cash flows. | ||||||||||||||||||||||||||||||||
Non-designated Foreign Currency Contracts | ||||||||||||||||||||||||||||||||
We use currency forward contracts as a part of our strategy to manage exposure related to foreign currency denominated monetary assets and liabilities. These currency forward contracts are not designated as cash flow, fair value or net investment hedges under Topic 815; are marked-to-market with changes in fair value recorded to earnings; and are entered into for periods consistent with currency transaction exposures, generally less than one year. We had currency derivative instruments not designated as hedges under Topic 815 outstanding in the contract amount of $1.952 billion as of December 31, 2013 and $1.942 billion as of December 31, 2012. | ||||||||||||||||||||||||||||||||
Interest Rate Hedging | ||||||||||||||||||||||||||||||||
Our interest rate risk relates primarily to U.S. dollar borrowings, partially offset by U.S. dollar cash investments. We have historically used interest rate derivative instruments to manage our earnings and cash flow exposure to changes in interest rates by converting floating-rate debt into fixed-rate debt or fixed-rate debt into floating-rate debt. | ||||||||||||||||||||||||||||||||
We designate these derivative instruments either as fair value or cash flow hedges under Topic 815. We record changes in the value of fair value hedges in interest expense, which is generally offset by changes in the fair value of the hedged debt obligation. Interest payments made or received related to our interest rate derivative instruments are included in interest expense. We record the effective portion of any change in the fair value of derivative instruments designated as cash flow hedges as unrealized gains or losses in OCI, net of tax, until the hedged cash flow occurs, at which point the effective portion of any gain or loss is reclassified to earnings. We record the ineffective portion of our cash flow hedges in interest expense. In the event the hedged cash flow does not occur, or it becomes no longer probable that it will occur, we reclassify the amount of any gain or loss on the related cash flow hedge to interest expense at that time. | ||||||||||||||||||||||||||||||||
In the fourth quarter of 2013, we entered into interest rate derivative contracts having a notional amount of $450 million to convert fixed-rate debt into floating-rate debt, which we designated as fair value hedges, and had $450 million outstanding as of December 31, 2013. We assessed at inception, and re-assess on an ongoing basis, whether the interest rate derivative contracts are highly effective in offsetting changes in the fair value of the hedged fixed rate debt. We recognized in interest expense, a $7 million gain on our hedged debt obligation, and an $8 million loss on the related interest rate derivative contract during 2013, resulting in a $1 million net loss recorded in earnings due to ineffectiveness. We had no interest rate derivative contracts outstanding as of December 31, 2012. | ||||||||||||||||||||||||||||||||
In prior years, we terminated certain interest rate derivative contracts, including fixed-to-floating interest rate contracts, designated as fair value hedges, and floating-to-fixed treasury locks designated as cash flow hedges. We amortize the gains and losses of these derivative instruments upon termination into earnings as a reduction of interest expense over the remaining term of the hedged debt, in accordance with Topic 815. The carrying amount of certain of our senior notes included unamortized gains of $54 million as of December 31, 2013 and $64 million as of December 31, 2012, and unamortized losses of $2 million as of December 31, 2013 and $3 million as of December 31, 2012, related to the fixed-to-floating interest rate contracts. In addition, we had pre-tax net gains within AOCI related to terminated floating-to-fixed treasury locks of $3 million as of December 31, 2013 and $4 million as of December 31, 2012. The gains that we recognized in earnings related to previously terminated interest rate derivatives were $10 million in 2013, $11 million in 2012, and were not material in 2011. As of December 31, 2013, $9 million of net gains may be reclassified to earnings within the next twelve months from amortization of our previously terminated interest rate derivative contracts. | ||||||||||||||||||||||||||||||||
Counterparty Credit Risk | ||||||||||||||||||||||||||||||||
We do not have significant concentrations of credit risk arising from our derivative financial instruments, whether from an individual counterparty or a related group of counterparties. We manage our concentration of counterparty credit risk on our derivative instruments by limiting acceptable counterparties to a diversified group of major financial institutions with investment grade credit ratings, limiting the amount of credit exposure to each counterparty, and by actively monitoring their credit ratings and outstanding fair values on an on-going basis. Furthermore, none of our derivative transactions are subject to collateral or other security arrangements and none contain provisions that are dependent on our credit ratings from any credit rating agency. | ||||||||||||||||||||||||||||||||
We also employ master netting arrangements that reduce our counterparty payment settlement risk on any given maturity date to the net amount of any receipts or payments due between us and the counterparty financial institution. Thus, the maximum loss due to credit risk by counterparty is limited to the unrealized gains in such contracts net of any unrealized losses should any of these counterparties fail to perform as contracted. Although these protections do not eliminate concentrations of credit risk, as a result of the above considerations, we do not consider the risk of counterparty default to be significant. | ||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||||||||||
The following presents the effect of our derivative instruments designated as cash flow hedges under Topic 815 on our accompanying consolidated statements of operations during 2013, 2012 and 2011 (in millions): | ||||||||||||||||||||||||||||||||
Amount of Pre-tax | Amount of Pre-tax | Location in Statement of | ||||||||||||||||||||||||||||||
Gain (Loss) | Gain (Loss) | Operations | ||||||||||||||||||||||||||||||
Recognized in OCI | Reclassified from | |||||||||||||||||||||||||||||||
(Effective Portion) | AOCI into Earnings | |||||||||||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Interest rate hedge contracts | $ | — | $ | 1 | Interest expense | |||||||||||||||||||||||||||
Currency hedge contracts | 207 | 36 | Cost of products sold | |||||||||||||||||||||||||||||
$ | 207 | $ | 37 | |||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Interest rate hedge contracts | $ | — | $ | 2 | Interest expense | |||||||||||||||||||||||||||
Currency hedge contracts | 95 | (39 | ) | Cost of products sold | ||||||||||||||||||||||||||||
$ | 95 | $ | (37 | ) | ||||||||||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||
Interest rate hedge contracts | $ | — | $ | 1 | Interest expense | |||||||||||||||||||||||||||
Currency hedge contracts | (66 | ) | (95 | ) | Cost of products sold | |||||||||||||||||||||||||||
$ | (66 | ) | $ | (94 | ) | |||||||||||||||||||||||||||
The amount of loss recognized in earnings related to the ineffective portion of our hedging relationships was $1 million in 2013 and de minimus in 2012. In 2011, we recognized a $5 million gain related to the ineffective portion of hedging relationships. | ||||||||||||||||||||||||||||||||
Net gains and losses on currency hedge contracts not designated as hedging instruments were offset by net losses and gains from foreign currency transaction exposures, as shown in the following table: | ||||||||||||||||||||||||||||||||
in millions | Year Ended | Location in Statement of | ||||||||||||||||||||||||||||||
December 31, | Operations | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Gain (loss) on currency hedge contracts | $ | 102 | $ | 23 | $ | 12 | Other, net | |||||||||||||||||||||||||
Gain (loss) on foreign currency transaction exposures | (113 | ) | (41 | ) | (24 | ) | Other, net | |||||||||||||||||||||||||
Net foreign currency gain (loss) | $ | (11 | ) | $ | (18 | ) | $ | (12 | ) | |||||||||||||||||||||||
Topic 815 requires all derivative instruments to be recognized at their fair values as either assets or liabilities on the balance sheet. We determine the fair value of our derivative instruments using the framework prescribed by ASC Topic 820, Fair Value Measurements and Disclosures, by considering the estimated amount we would receive or pay to transfer these instruments at the reporting date and by taking into account current interest rates, foreign currency exchange rates, the creditworthiness of the counterparty for assets, and our creditworthiness for liabilities. In certain instances, we may utilize financial models to measure fair value. Generally, we use inputs that include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; other observable inputs for the asset or liability; and inputs derived principally from, or corroborated by, observable market data by correlation or other means. As of December 31, 2013, we have classified all of our derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by Topic 820, as discussed below, because these observable inputs are available for substantially the full term of our derivative instruments. | ||||||||||||||||||||||||||||||||
The following are the balances of our derivative assets and liabilities as of December 31, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||
(in millions) | Location in Balance Sheet (1) | 2013 | 2012 | |||||||||||||||||||||||||||||
Derivative Assets: | ||||||||||||||||||||||||||||||||
Designated Hedging Instruments | ||||||||||||||||||||||||||||||||
Currency hedge contracts | Prepaid and other current assets | $ | 117 | $ | 25 | |||||||||||||||||||||||||||
Currency hedge contracts | Other long-term assets | 120 | 63 | |||||||||||||||||||||||||||||
Interest rate contracts | Prepaid and other current assets | 1 | — | |||||||||||||||||||||||||||||
238 | 88 | |||||||||||||||||||||||||||||||
Non-Designated Hedging Instruments | ||||||||||||||||||||||||||||||||
Currency hedge contracts | Prepaid and other current assets | 27 | 33 | |||||||||||||||||||||||||||||
Total Derivative Assets | $ | 265 | $ | 121 | ||||||||||||||||||||||||||||
Derivative Liabilities: | ||||||||||||||||||||||||||||||||
Designated Hedging Instruments | ||||||||||||||||||||||||||||||||
Currency hedge contracts | Other current liabilities | $ | 13 | $ | 20 | |||||||||||||||||||||||||||
Currency hedge contracts | Other long-term liabilities | 19 | 10 | |||||||||||||||||||||||||||||
Interest rate contracts | Other long-term liabilities | 8 | — | |||||||||||||||||||||||||||||
40 | 30 | |||||||||||||||||||||||||||||||
Non-Designated Hedging Instruments | ||||||||||||||||||||||||||||||||
Currency hedge contracts | Other current liabilities | 23 | 27 | |||||||||||||||||||||||||||||
Total Derivative Liabilities | $ | 63 | $ | 57 | ||||||||||||||||||||||||||||
-1 | We classify derivative assets and liabilities as current when the remaining term of the derivative contract is one year or less. | |||||||||||||||||||||||||||||||
Other Fair Value Measurements | ||||||||||||||||||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||||||||||||||||||
On a recurring basis, we measure certain financial assets and financial liabilities at fair value based upon quoted market prices, where available. Where quoted market prices or other observable inputs are not available, we apply valuation techniques to estimate fair value. Topic 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The categorization of financial assets and financial liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy are defined as follows: | ||||||||||||||||||||||||||||||||
• | Level 1 – Inputs to the valuation methodology are quoted market prices for identical assets or liabilities. | |||||||||||||||||||||||||||||||
• | Level 2 – Inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets or liabilities and market-corroborated inputs. | |||||||||||||||||||||||||||||||
• | Level 3 – Inputs to the valuation methodology are unobservable inputs based on management’s best estimate of inputs market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk. | |||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis consist of the following as of December 31, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Money market and government funds | $ | 38 | $ | — | $ | — | $ | 38 | $ | 39 | $ | — | $ | — | $ | 39 | ||||||||||||||||
Currency hedge contracts | — | 264 | — | 264 | — | 121 | — | 121 | ||||||||||||||||||||||||
Interest rate contracts | — | 1 | — | 1 | — | — | — | — | ||||||||||||||||||||||||
$ | 38 | $ | 265 | $ | — | $ | 303 | $ | 39 | $ | 121 | $ | — | $ | 160 | |||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Currency hedge contracts | $ | — | $ | 55 | $ | — | $ | 55 | $ | — | $ | 57 | $ | — | $ | 57 | ||||||||||||||||
Accrued contingent consideration | — | — | 501 | 501 | — | — | 663 | 663 | ||||||||||||||||||||||||
Interest rate contracts | — | 8 | — | 8 | — | — | — | — | ||||||||||||||||||||||||
$ | — | $ | 63 | $ | 501 | $ | 564 | — | $ | 57 | $ | 663 | $ | 720 | ||||||||||||||||||
Our investments in money market and government funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. These investments are classified as cash and cash equivalents within our accompanying consolidated balance sheets, in accordance with U.S. GAAP and our accounting policies. | ||||||||||||||||||||||||||||||||
In addition to $38 million invested in money market and government funds as of December 31, 2013, we had $31 million in short-term time deposits and $148 million in interest bearing and non-interest bearing bank accounts. In addition to $39 million invested in money market and government funds as of December 31, 2012, we had $168 million in interest bearing and non-interest bearing bank accounts. | ||||||||||||||||||||||||||||||||
Our recurring fair value measurements using significant unobservable inputs (Level 3) relate solely to our contingent consideration liability. Refer to Note B - Acquisitions for a discussion of the changes in the fair value of our contingent consideration liability. | ||||||||||||||||||||||||||||||||
Non-Recurring Fair Value Measurements | ||||||||||||||||||||||||||||||||
We hold certain assets and liabilities that are measured at fair value on a non-recurring basis in periods subsequent to initial recognition. The fair value of a cost method investment is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. The aggregate carrying amount of our cost method investments was $20 million as of December 31, 2013 and $13 million as of December 31, 2012. | ||||||||||||||||||||||||||||||||
During 2013 and 2012, we recorded losses of $476 million and $4.492 billion, respectively, to adjust our goodwill and certain other intangible asset balances to their fair value. Refer to Note D - Goodwill and Other Intangible Assets, for further detailed information related to these charges and significant unobservable inputs. | ||||||||||||||||||||||||||||||||
The fair value of our outstanding debt obligations was $4.602 billion as of December 31, 2013 and $4.793 billion as of December 31, 2012, which was determined by using primarily quoted market prices for our publicly-registered senior notes, classified as Level 1 within the fair value hierarchy. Refer to Note F – Borrowings and Credit Arrangements for a discussion of our debt obligations. |
Borrowings_and_Credit_Arrangem
Borrowings and Credit Arrangements | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Borrowings and Credit Arrangements [Abstract] | ' | |||||||||||||||||||||||||||
BORROWINGS AND CREDIT ARRANGEMENTS | ' | |||||||||||||||||||||||||||
BORROWINGS AND CREDIT ARRANGEMENTS | ||||||||||||||||||||||||||||
We had total debt of $4.240 billion as of December 31, 2013 and $4.256 billion as of December 31, 2012. During the third quarter of 2013, we refinanced our public debt obligations maturing in June 2014 and January 2015 (see Senior Notes below). The debt maturity schedule for the significant components of our debt obligations as of December 31, 2013 is as follows: | ||||||||||||||||||||||||||||
(in millions) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||
Senior notes | $ | — | $ | 400 | $ | 600 | $ | 250 | $ | 600 | $ | 1,950 | $ | 3,800 | ||||||||||||||
Term loan | — | — | 80 | 80 | 240 | — | 400 | |||||||||||||||||||||
$ | — | $ | 400 | $ | 680 | $ | 330 | $ | 840 | $ | 1,950 | $ | 4,200 | |||||||||||||||
Note: | The table above does not include unamortized discounts associated with our senior notes, or amounts related to interest rate contracts used to hedge the fair value of certain of our senior notes. | |||||||||||||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||||||||||||
We maintain a $2.0 billion revolving credit facility, maturing in April 2017, with a global syndicate of commercial banks. Eurodollar and multicurrency loans under this revolving credit facility bear interest at LIBOR plus an interest margin of between 0.875 percent and 1.475 percent, based on our corporate credit ratings and consolidated leverage ratio (1.275 percent, as of December 31, 2013). In addition, we are required to pay a facility fee based on our credit ratings, consolidated leverage ratio, and the total amount of revolving credit commitments, regardless of usage, under the agreement (0.225 percent, as of December 31, 2013). There were no amounts borrowed under our revolving credit facility as of December 31, 2013 or December 31, 2012. | ||||||||||||||||||||||||||||
Our revolving credit facility agreement in place as of December 31, 2013 requires that we maintain certain financial covenants, as follows: | ||||||||||||||||||||||||||||
Covenant | Actual as of December 31, 2013 | |||||||||||||||||||||||||||
Requirement | ||||||||||||||||||||||||||||
Maximum leverage ratio (1) | 3.5 times | 2.5 times | ||||||||||||||||||||||||||
Minimum interest coverage ratio (2) | 3.0 times | 5.2 times | ||||||||||||||||||||||||||
-1 | Ratio of total debt to consolidated EBITDA, as defined by the credit agreement, for the preceding four consecutive fiscal quarters. | |||||||||||||||||||||||||||
-2 | Ratio of consolidated EBITDA, as defined by the credit agreement, to interest expense for the preceding four consecutive fiscal quarters. | |||||||||||||||||||||||||||
The credit agreement provides for an exclusion from the calculation of consolidated EBITDA, as defined by the agreement, through the credit agreement maturity, of any non-cash charges and up to $500 million in restructuring charges and restructuring-related expenses related to our current or future restructuring plans. As of December 31, 2013, we had $234 million of the restructuring charge exclusion remaining. In addition, any cash litigation payments (net of any cash litigation receipts), as defined by the agreement, are excluded from the calculation of consolidated EBITDA and any new debt issued to fund any tax deficiency payments is excluded from consolidated total debt, as defined in the agreement, provided that the sum of any excluded net cash litigation payments and any new debt issued to fund any tax deficiency payments shall not exceed $2.300 billion in the aggregate. As of December 31, 2013, we had approximately $2.185 billion of the combined legal and debt exclusion remaining. As of and through December 31, 2013, we were in compliance with the required covenants. | ||||||||||||||||||||||||||||
Any inability to maintain compliance with these covenants could require us to seek to renegotiate the terms of our credit facilities or seek waivers from compliance with these covenants, both of which could result in additional borrowing costs. Further, there can be no assurance that our lenders would agree to such new terms or grant such waivers. | ||||||||||||||||||||||||||||
Term Loan | ||||||||||||||||||||||||||||
In August 2013, we entered into a new $400 million, unsecured term loan facility. Term loan borrowings under this facility bear interest at LIBOR plus an interest margin of between 1.0 percent and 1.75 percent (currently 1.5 percent), based on our corporate credit ratings and consolidated leverage ratio. The term loan borrowings are payable over a five-year period, with quarterly principal payments of $20 million commencing in the first quarter of 2016 and the remaining principal amount due at the final maturity date in August 2018, and are repayable at any time without premium or penalty. Our term loan facility requires that we comply with certain covenants, including financial covenants with respect to maximum leverage and minimum interest coverage; the maximum leverage ratio requirement is 3.5 times, our actual leverage ratio as of December 31, 2013 is 2.5 times and the minimum interest coverage ratio requirement is 3.0 times, our actual interest coverage ratio as of December 31, 2013 is 5.2 times. We had $400 million outstanding under this facility as of December 31, 2013 and no borrowings outstanding as of December 31, 2012. | ||||||||||||||||||||||||||||
Senior Notes | ||||||||||||||||||||||||||||
We had senior notes outstanding of $3.800 billion and $4.200 billion as of December 31, 2013 and December 31, 2012, respectively. In August 2013, we issued $600 million of 2.650% senior notes due in 2018, and $450 million of 4.125% senior notes due in 2023. In September 2013, we used the proceeds, together with borrowings under our new $400 million term loan facility, to prepay $600 million of senior notes maturing in June 2014 and $850 million maturing in January 2015. We recorded a one-time charge of $70 million ($44 million after-tax) for premiums, accelerated amortization of debt issuance costs and investor discount costs net of accelerated amortization of interest rate hedge gains related to the early debt extinguishment. Our senior notes are publicly registered securities, are redeemable prior to maturity and are not subject to any sinking fund requirements. Our senior notes are unsecured, unsubordinated obligations and rank on parity with each other. These notes are effectively junior to borrowings under our credit and security facility and liabilities of our subsidiaries (see Other Arrangements below). | ||||||||||||||||||||||||||||
Our senior notes consist of the following as of December 31, 2013: | ||||||||||||||||||||||||||||
Amount | Issuance | Maturity Date | Semi-annual | |||||||||||||||||||||||||
(in millions) | Date | Coupon Rate | ||||||||||||||||||||||||||
November 2015 Notes | $ | 400 | Nov-05 | Nov-15 | 5.50% | |||||||||||||||||||||||
June 2016 Notes | 600 | Jun-06 | Jun-16 | 6.40% | ||||||||||||||||||||||||
January 2017 Notes | 250 | Nov-04 | Jan-17 | 5.13% | ||||||||||||||||||||||||
October 2018 Notes | 600 | Aug-13 | Oct-18 | 2.65% | ||||||||||||||||||||||||
January 2020 Notes | 850 | Dec-09 | Jan-20 | 6.00% | ||||||||||||||||||||||||
October 2023 Notes | 450 | Aug-13 | Oct-23 | 4.13% | ||||||||||||||||||||||||
November 2035 Notes | 350 | Nov-05 | Nov-35 | 6.25% | ||||||||||||||||||||||||
January 2040 Notes | 300 | Dec-09 | Jan-40 | 7.38% | ||||||||||||||||||||||||
$ | 3,800 | |||||||||||||||||||||||||||
Our $2.2 billion of senior notes issued in 2009 and 2013 contain a change-in-control provision, which provides that each holder of the senior notes may require us to repurchase all or a portion of the notes at a price equal to 101 percent of the aggregate repurchased principal, plus accrued and unpaid interest, if a rating event, as defined in the indenture, occurs as a result of a change-in-control, as defined in the indenture. Any other credit rating changes may impact our borrowing cost, but do not require us to repay any borrowings. | ||||||||||||||||||||||||||||
The interest rate payable on our November 2015 Notes is currently 6.25 percent and the interest rate payable on our November 2035 Notes is currently 7.00 percent. Corporate credit rating improvements may result in a decrease in the adjusted interest rate on our November 2015 and November 2035 Notes to the extent that our lowest credit rating is above BBB- or Baa3. The interest rates on our November 2015 and November 2035 Notes will be permanently reinstated to the issuance rate if the lowest credit ratings assigned to these senior notes is either A- or A3 or higher. | ||||||||||||||||||||||||||||
Other Arrangements | ||||||||||||||||||||||||||||
We also maintain a credit and security facility secured by our U.S. trade receivables. In June 2013, we extended the maturity of this facility through June 2015, subject to further extension, reduced the size of the facility from $350 million to $300 million and added a maximum leverage covenant consistent with our revolving credit facility. The maximum leverage ratio requirement is 3.5 times and our actual leverage ratio as of December 31, 2013 is 2.5 times. We had no borrowings outstanding under this facility as of December 31, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||
We have accounts receivable factoring programs in certain European countries that we account for as sales under ASC Topic 860, Transfers and Servicing. These agreements provide for the sale of accounts receivable to third parties, without recourse, of up to approximately $312 million as of December 31, 2013. We have no retained interests in the transferred receivables, other than collection and administrative responsibilities and, once sold, the accounts receivable are no longer available to satisfy creditors in the event of bankruptcy. We de-recognized $146 million of receivables as of December 31, 2013 at an average interest rate of 3.3 percent, and $191 million as of December 31, 2012 at an average interest rate of 1.6 percent. Within Italy, Spain, Portugal and Greece the number of days our receivables are outstanding has increased above historical levels. We believe we have adequate allowances for doubtful accounts related to our Italy, Spain, Portugal and Greece accounts receivable; however, we continue to monitor the European economic environment for any collectibility issues related to our outstanding receivables. | ||||||||||||||||||||||||||||
In addition, we have uncommitted credit facilities with a commercial Japanese bank that provide for borrowings, promissory notes discounting and receivables factoring of up to 21.0 billion Japanese yen (approximately $200 million as of December 31, 2013). We de-recognized $147 million of notes receivable as of December 31, 2013 at an average interest rate of 1.8 percent and $182 million of notes receivable as of December 31, 2012 at an average interest rate of 1.6 percent. De-recognized accounts and notes receivable are excluded from trade accounts receivable, net in the accompanying consolidated balance sheets. | ||||||||||||||||||||||||||||
As of December 31, 2013, we had outstanding letters of credit of $78 million, as compared to $94 million as of December 31, 2012, which consisted primarily of bank guarantees and collateral for workers' compensation insurance arrangements. As of December 31, 2013 and 2012, none of the beneficiaries had drawn upon the letters of credit or guarantees; accordingly, we have not recognized a related liability for our outstanding letters of credit in our consolidated balance sheets as of December 31, 2013 or 2012. We believe we will generate sufficient cash from operations to fund these payments and intend to fund these payments without drawing on the letters of credit. |
Leases
Leases | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases [Abstract] | ' | |||
Leases of Lessee Disclosure [Text Block] | ' | |||
LEASES | ||||
Rent expense amounted to $77 million in 2013, $80 million in 2012 and $90 million in 2011. | ||||
Our obligations under noncancelable capital leases were not material as of December 31, 2013 and 2012. | ||||
Future minimum rental commitments as of December 31, 2013 under other noncancelable lease agreements are as follows (in millions): | ||||
2014 | $ | 64 | ||
2015 | 51 | |||
2016 | 43 | |||
2017 | 29 | |||
2018 | 25 | |||
Thereafter | 42 | |||
$ | 254 | |||
Restructuring_Related_Activiti
Restructuring Related Activities | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Restructuring Charges [Abstract] | ' | |||||||||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | |||||||||||||||||||||||
RESTRUCTURING-RELATED ACTIVITIES | ||||||||||||||||||||||||
On an on-going basis, we monitor the dynamics of the economy, the healthcare industry, and the markets in which we compete; and we continue to assess opportunities for improved operational effectiveness and efficiency, and better alignment of expenses with revenues, while preserving our ability to make the investments in research and development projects, capital and our people that are essential to our long-term success. As a result of these assessments, we have undertaken various restructuring initiatives in order to enhance our growth potential and position us for long-term success. These initiatives are described below. | ||||||||||||||||||||||||
2014 Restructuring Plan | ||||||||||||||||||||||||
On October 22, 2013, our Board of Directors approved, and we committed to, a restructuring initiative (the 2014 Restructuring plan). The 2014 Restructuring plan is intended to build on the progress we have made to address financial pressures in a changing global marketplace, further strengthen its operational effectiveness and efficiency and support new growth investments. Key activities under the plan include continued implementation of our ongoing Plant Network Optimization (PNO) strategy, continued focus on driving operational efficiencies and ongoing business and commercial model changes. The PNO strategy is intended to simplify our manufacturing plant structure by transferring certain production lines among facilities. Other activities involve rationalizing organizational reporting structures to streamline various functions, eliminate bureaucracy, increase productivity and better align resources to business strategies and marketplace dynamics. These activities were initiated in the fourth quarter of 2013 and are expected to be substantially completed by the end of 2015. | ||||||||||||||||||||||||
We estimate that the implementation of the 2014 Restructuring plan will result in total pre-tax charges of approximately $175 million to $225 million, of which approximately $160 million to $210 million is expected to result in future cash outlays. We have recorded related costs of $30 million in the fourth quarter of 2013, and are recording a portion of these expenses as restructuring charges and the remaining portion through other lines within our consolidated statement of operations. The following table provides a summary of our estimates of costs associated with the 2014 Restructuring plan by major type of cost: | ||||||||||||||||||||||||
Type of cost | Total estimated amount expected to | |||||||||||||||||||||||
be incurred | ||||||||||||||||||||||||
Restructuring charges: | ||||||||||||||||||||||||
Termination benefits | $100 million to $120 million | |||||||||||||||||||||||
Other (1) | $5 million to $15 million | |||||||||||||||||||||||
Restructuring-related expenses: | ||||||||||||||||||||||||
Other (2) | $70 million to $90 million | |||||||||||||||||||||||
$175 million to $225 million | ||||||||||||||||||||||||
(1) Consists primarily of consultant fees and costs associated with contractual cancellations. | ||||||||||||||||||||||||
(2) Comprised of other costs directly related to the 2014 Restructuring plan, including program management, accelerated depreciation, and costs to transfer product lines among facilities. | ||||||||||||||||||||||||
2011 Restructuring Plan | ||||||||||||||||||||||||
On July 26, 2011, our Board of Directors approved, and we committed to, a restructuring initiative (the 2011 Restructuring plan) designed to strengthen operational effectiveness and efficiencies, increase competitiveness and support new investments, thereby increasing shareholder value. Key activities under the 2011 Restructuring plan included standardizing and automating certain processes and activities; relocating select administrative and functional activities; rationalizing organizational reporting structures; leveraging preferred vendors; and other efforts to eliminate inefficiency. Among these efforts, we expanded our ability to deliver best-in-class global shared services for certain functions and divisions at several locations in emerging markets. This action was intended to enable us to grow our global commercial presence in key geographies and take advantage of many cost-reducing and productivity-enhancing opportunities. In addition, we undertook efforts to streamline various corporate functions, eliminate bureaucracy, increase productivity and better align corporate resources to our key business strategies. On January 25, 2013, our Board of Directors approved, and we committed to, an expansion of the 2011 Restructuring plan (the Expansion). The Expansion was intended to further strengthen our operational effectiveness and efficiencies and support new investments. Activities under the 2011 Restructuring plan were initiated in the third quarter of 2011 and all activities, including those related to the Expansion, were substantially completed by the end of 2013. | ||||||||||||||||||||||||
The 2011 Restructuring plan, including the Expansion, is estimated to result in total pre-tax charges of approximately $285 million to $295 million, and approximately $270 million to $280 million of these charges is estimated to result in cash outlays, of which we have made payments of $268 million to date. We have recorded related costs of $284 million since the inception of the plan, and recorded a portion of these expenses as restructuring charges and the remaining portion through other lines within our consolidated statements of operations. | ||||||||||||||||||||||||
The following provides a summary of our expected total costs associated with the 2011 Restructuring plan, including the Expansion, by major type of cost: | ||||||||||||||||||||||||
Type of cost | Total estimated amount expected to | |||||||||||||||||||||||
be incurred | ||||||||||||||||||||||||
Restructuring charges: | ||||||||||||||||||||||||
Termination benefits | $135 million to $140 million | |||||||||||||||||||||||
Other (1) | $110 million to $113 million | |||||||||||||||||||||||
Restructuring-related expenses: | ||||||||||||||||||||||||
Other (2) | $40 million to $42 million | |||||||||||||||||||||||
$285 million to $295 million | ||||||||||||||||||||||||
-1 | Includes primarily consulting fees, net fixed asset write-offs and costs associated with contractual cancellations. | |||||||||||||||||||||||
-2 | Comprised of other costs directly related to the 2011 Restructuring plan, including the Expansion, such as program management, accelerated depreciation, retention and infrastructure-related costs. | |||||||||||||||||||||||
2010 Restructuring Plan | ||||||||||||||||||||||||
On February 6, 2010, our Board of Directors approved, and we committed to, a series of management changes and restructuring initiatives (the 2010 Restructuring plan) designed to focus our business, drive innovation, accelerate profitable revenue growth and increase both accountability and shareholder value. Key activities under the plan included the restructuring of certain of our businesses and corporate functions; the re-alignment of our international structure to reduce our administrative costs and invest in expansion opportunities including significant investments in emerging markets; and the re-prioritization and diversification of our product portfolio. Activities under the 2010 Restructuring plan were initiated in the first quarter of 2010 and were complete by the end of 2012. | ||||||||||||||||||||||||
The execution of the 2010 Restructuring plan resulted in total pre-tax charges of $160 million, and required cash outlays of $145 million. We have recorded a portion of these expenses as restructuring charges and the remaining portion through other lines within our consolidated statements of operations. | ||||||||||||||||||||||||
The following provides a summary of our costs associated with the 2010 Restructuring plan by major type of cost: | ||||||||||||||||||||||||
Type of cost | Total amount incurred | |||||||||||||||||||||||
Restructuring charges: | ||||||||||||||||||||||||
Termination benefits | $90 million | |||||||||||||||||||||||
Fixed asset write-offs | $11 million | |||||||||||||||||||||||
Other (1) | $51 million | |||||||||||||||||||||||
Restructuring-related expenses: | ||||||||||||||||||||||||
Other (2) | $8 million | |||||||||||||||||||||||
$160 million | ||||||||||||||||||||||||
-1 | Includes primarily consulting fees and costs associated with contractual cancellations. | |||||||||||||||||||||||
-2 | Comprised of other costs directly related to the 2010 Restructuring plan, including accelerated depreciation and infrastructure-related costs. | |||||||||||||||||||||||
Plant Network Optimization Program | ||||||||||||||||||||||||
In January 2009, our Board of Directors approved, and we committed to, a Plant Network Optimization program, intended to simplify our manufacturing plant structure by transferring certain production lines among facilities and by closing certain other facilities. The program was intended to improve our overall gross profit margins. Activities under the Plant Network Optimization program were initiated in the first quarter of 2009 and were substantially completed during 2012. | ||||||||||||||||||||||||
The Plant Network Optimization program resulted in total pre-tax charges of $126 million, and resulted in cash outlays of $103 million. We have recorded a portion of these expenses as restructuring charges and the remaining portion through cost of products sold within our consolidated statements of operations. | ||||||||||||||||||||||||
The following provides a summary of our costs associated with the Plant Network Optimization program by major type of cost: | ||||||||||||||||||||||||
Type of cost | Total amount incurred | |||||||||||||||||||||||
Restructuring charges: | ||||||||||||||||||||||||
Termination benefits | $30 million | |||||||||||||||||||||||
Restructuring-related expenses: | ||||||||||||||||||||||||
Accelerated depreciation | $22 million | |||||||||||||||||||||||
Transfer costs (1) | $74 million | |||||||||||||||||||||||
$126 million | ||||||||||||||||||||||||
-1 | Consists primarily of costs to transfer product lines among facilities, including costs of transfer teams, freight, idle facility and product line validations. | |||||||||||||||||||||||
In aggregate, we recorded restructuring charges pursuant to our restructuring plans of $101 million during 2013, $136 million during 2012, and $89 million during 2011. In addition, we recorded expenses within other lines of our accompanying consolidated statements of operations related to our restructuring initiatives of $23 million during 2013, $24 million during 2012, and $40 million during 2011. | ||||||||||||||||||||||||
The following presents these costs by major type and line item within our accompanying consolidated statements of operations, as well as by program: | ||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
(in millions) | Termination | Accelerated | Net (Gain) on Fixed Asset Disposals | Other | Total | |||||||||||||||||||
Benefits | Depreciation | |||||||||||||||||||||||
Restructuring charges | $ | 60 | $ | — | $ | (15 | ) | $ | 56 | $ | 101 | |||||||||||||
Restructuring-related expenses: | ||||||||||||||||||||||||
Selling, general and administrative expenses | — | 3 | — | 20 | 23 | |||||||||||||||||||
— | 3 | — | 20 | 23 | ||||||||||||||||||||
$ | 60 | $ | 3 | $ | (15 | ) | $ | 76 | $ | 124 | ||||||||||||||
(in millions) | Termination | Accelerated | Net (Gain) on Fixed Asset Disposals | Other | Total | |||||||||||||||||||
Benefits | Depreciation | |||||||||||||||||||||||
2014 Restructuring plan | $ | 29 | $ | — | $ | — | $ | 1 | $ | 30 | ||||||||||||||
2011 Restructuring plan | 37 | 3 | (15 | ) | 75 | 100 | ||||||||||||||||||
2010 Restructuring plan | — | — | — | — | — | |||||||||||||||||||
Plant Network Optimization program | (6 | ) | — | — | — | (6 | ) | |||||||||||||||||
$ | 60 | $ | 3 | $ | (15 | ) | $ | 76 | $ | 124 | ||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||
(in millions) | Termination | Accelerated | Transfer | Fixed Asset | Other | Total | ||||||||||||||||||
Benefits | Depreciation | Costs | Write-offs | |||||||||||||||||||||
Restructuring charges | $ | 79 | $ | — | $ | — | $ | 14 | $ | 43 | $ | 136 | ||||||||||||
Restructuring-related expenses: | ||||||||||||||||||||||||
Cost of products sold | — | — | 8 | — | — | 8 | ||||||||||||||||||
Selling, general and administrative expenses | — | 2 | — | — | 14 | 16 | ||||||||||||||||||
— | 2 | 8 | — | 14 | 24 | |||||||||||||||||||
$ | 79 | $ | 2 | $ | 8 | $ | 14 | $ | 57 | $ | 160 | |||||||||||||
(in millions) | Termination | Accelerated | Transfer | Fixed Asset | Other | Total | ||||||||||||||||||
Benefits | Depreciation | Costs | Write-offs | |||||||||||||||||||||
2011 Restructuring plan | $ | 78 | $ | 2 | $ | — | $ | 14 | $ | 55 | $ | 149 | ||||||||||||
2010 Restructuring plan | 1 | — | — | — | 2 | 3 | ||||||||||||||||||
Plant Network Optimization program | — | — | 8 | — | — | 8 | ||||||||||||||||||
$ | 79 | $ | 2 | $ | 8 | $ | 14 | $ | 57 | $ | 160 | |||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||
(in millions) | Termination | Accelerated | Transfer | Fixed Asset | Other | Total | ||||||||||||||||||
Benefits | Depreciation | Costs | Write-offs | |||||||||||||||||||||
Restructuring charges | $ | 55 | $ | — | $ | — | $ | — | $ | 34 | $ | 89 | ||||||||||||
Restructuring-related expenses: | ||||||||||||||||||||||||
Cost of products sold | — | 9 | 27 | — | — | 36 | ||||||||||||||||||
Selling, general and administrative expenses | — | — | — | — | 4 | 4 | ||||||||||||||||||
— | 9 | 27 | — | 4 | 40 | |||||||||||||||||||
$ | 55 | $ | 9 | $ | 27 | $ | — | $ | 38 | $ | 129 | |||||||||||||
(in millions) | Termination | Accelerated | Transfer | Fixed Asset | Other | Total | ||||||||||||||||||
Benefits | Depreciation | Costs | Write-offs | |||||||||||||||||||||
2011 Restructuring plan | $ | 21 | $ | — | $ | — | $ | — | $ | 14 | $ | 35 | ||||||||||||
2010 Restructuring plan | 24 | 1 | — | — | 24 | 49 | ||||||||||||||||||
Plant Network Optimization program | 10 | 8 | 27 | — | — | 45 | ||||||||||||||||||
$ | 55 | $ | 9 | $ | 27 | $ | — | $ | 38 | $ | 129 | |||||||||||||
Termination benefits represent amounts incurred pursuant to our on-going benefit arrangements and amounts for “one-time” involuntary termination benefits, and have been recorded in accordance with ASC Topic 712, Compensation – Non-retirement Postemployment Benefits and ASC Topic 420, Exit or Disposal Cost Obligations. We expect to record additional termination benefits related to our restructuring initiatives in 2014 when we identify with more specificity the job classifications, functions and locations of the remaining head count to be eliminated. Other restructuring costs, which represent primarily contractual cancellations and consulting fees, are being recorded as incurred in accordance with ASC Topic 420. Accelerated depreciation is being recorded over the adjusted remaining useful life of the related assets, and production line transfer costs are being recorded as incurred. | ||||||||||||||||||||||||
We have incurred cumulative restructuring charges related to our 2014 Restructuring plan, 2011 Restructuring plan, 2010 Restructuring plan and Plant Network Optimization program of $456 million and restructuring-related costs of $144 million since we committed to each plan. The following presents these costs by major type and by plan: | ||||||||||||||||||||||||
(in millions) | 2014 Restructuring | 2011 | 2010 | Plant | Total | |||||||||||||||||||
plan | Restructuring | Restructuring | Network | |||||||||||||||||||||
plan | plan | Optimization | ||||||||||||||||||||||
Termination benefits | $ | 29 | $ | 136 | $ | 90 | $ | 30 | $ | 285 | ||||||||||||||
Fixed asset write-offs | — | (1 | ) | 11 | — | 10 | ||||||||||||||||||
Other | — | 110 | 51 | — | 161 | |||||||||||||||||||
Total restructuring charges | 29 | 245 | 152 | 30 | 456 | |||||||||||||||||||
Accelerated depreciation | — | 5 | — | 22 | 27 | |||||||||||||||||||
Transfer costs | — | — | — | 74 | 74 | |||||||||||||||||||
Other | 1 | 34 | 8 | — | 43 | |||||||||||||||||||
Restructuring-related expenses | 1 | 39 | 8 | 96 | 144 | |||||||||||||||||||
$ | 30 | $ | 284 | $ | 160 | $ | 126 | $ | 600 | |||||||||||||||
We made cash payments of $141 million in 2013 associated with restructuring initiatives pursuant to these plans, and have made total cash payments of $516 million related to our 2014 Restructuring plan, 2011 Restructuring plan, 2010 Restructuring plan and Plant Network Optimization program since committing to each plan. Each of these payments was made using cash generated from operations, and are comprised of the following: | ||||||||||||||||||||||||
(in millions) | 2014 Restructuring | 2011 | 2010 | Plant | Total | |||||||||||||||||||
plan | Restructuring | Restructuring | Network | |||||||||||||||||||||
plan | plan | Optimization | ||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
Termination benefits | $ | — | $ | 61 | $ | — | $ | 1 | $ | 62 | ||||||||||||||
Transfer costs | — | — | — | — | — | |||||||||||||||||||
Other | — | 79 | — | — | 79 | |||||||||||||||||||
$ | — | $ | 140 | $ | — | $ | 1 | $ | 141 | |||||||||||||||
Program to Date | ||||||||||||||||||||||||
Termination benefits | $ | — | $ | 124 | $ | 90 | $ | 30 | $ | 244 | ||||||||||||||
Transfer costs | — | — | — | 73 | 73 | |||||||||||||||||||
Other | — | 144 | 55 | — | 199 | |||||||||||||||||||
$ | — | $ | 268 | $ | 145 | $ | 103 | $ | 516 | |||||||||||||||
Our restructuring liability is primarily comprised of accruals for termination benefits. The following is a rollforward of the termination benefit liability associated with our 2014 Restructuring plan, 2011 Restructuring plan, 2010 Restructuring plan and Plant Network Optimization program, since the inception of the respective plan, which is reported as a component of accrued expenses included in our accompanying consolidated balance sheets: | ||||||||||||||||||||||||
Restructuring Plan Termination Benefits | ||||||||||||||||||||||||
Plant | ||||||||||||||||||||||||
Network | ||||||||||||||||||||||||
(in millions) | 2014 | 2011 | 2010 | Optimization | Total | |||||||||||||||||||
Accrued as of December 31, 2010 | $ | — | $ | — | $ | 21 | $ | 26 | $ | 47 | ||||||||||||||
Charges | — | 21 | 24 | 10 | 55 | |||||||||||||||||||
Cash payments | — | (3 | ) | (39 | ) | (3 | ) | (45 | ) | |||||||||||||||
Accrued as of December 31, 2011 | — | 18 | 6 | 33 | 57 | |||||||||||||||||||
Charges | — | 78 | 1 | — | 79 | |||||||||||||||||||
Cash payments | — | (60 | ) | (4 | ) | (24 | ) | (88 | ) | |||||||||||||||
Accrued as of December 31, 2012 | — | 36 | 3 | 9 | 48 | |||||||||||||||||||
Charges | 29 | 37 | — | (6 | ) | 60 | ||||||||||||||||||
Cash payments | — | (61 | ) | — | (1 | ) | (62 | ) | ||||||||||||||||
Other | — | — | (3 | ) | (2 | ) | (5 | ) | ||||||||||||||||
Accrued as of December 31, 2013 | $ | 29 | $ | 12 | $ | — | $ | — | $ | 41 | ||||||||||||||
In addition to our accrual for termination benefits, we had an $8 million liability as of December 31, 2013 and a $5 million liability as of December 31, 2012 for other restructuring-related items. |
Supplemental_Balance_Sheet_Inf
Supplemental Balance Sheet Information | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Supplemental Balance Sheet Information [Abstract] | ' | ||||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ' | ||||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | |||||||||||
Components of selected captions in our accompanying consolidated balance sheets are as follows: | |||||||||||
Trade accounts receivable, net | |||||||||||
As of | |||||||||||
(in millions) | 31-Dec-13 | 31-Dec-12 | |||||||||
Accounts receivable | $ | 1,419 | $ | 1,336 | |||||||
Less: allowance for doubtful accounts | (81 | ) | (88 | ) | |||||||
Less: allowance for sales returns | (31 | ) | (31 | ) | |||||||
$ | 1,307 | $ | 1,217 | ||||||||
The following is a rollforward of our allowance for doubtful accounts for 2013, 2012 and 2011: | |||||||||||
Year Ended | |||||||||||
December 31, | |||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||
Beginning balance | $ | 88 | $ | 81 | $ | 83 | |||||
Net charges to expenses | 5 | 14 | 11 | ||||||||
Utilization of allowances | (12 | ) | (7 | ) | (13 | ) | |||||
Ending balance | $ | 81 | $ | 88 | $ | 81 | |||||
During the first quarter of 2011, we reversed $20 million of previously established allowances for doubtful accounts against long-outstanding receivables in Greece. These receivables had previously been fully reserved as we had determined that they had a high risk of being uncollectible due to the economic situation in Greece. During the first quarter of 2011, the Greek government converted these receivables into bonds, which we were able to monetize, reducing our allowance for doubtful accounts as a credit to selling, general and administrative expenses. | |||||||||||
Inventories | |||||||||||
As of | |||||||||||
(in millions) | 31-Dec-13 | 31-Dec-12 | |||||||||
Finished goods | $ | 598 | $ | 598 | |||||||
Work-in-process | 90 | 70 | |||||||||
Raw materials | 209 | 216 | |||||||||
$ | 897 | $ | 884 | ||||||||
Property, plant and equipment, net | |||||||||||
As of | |||||||||||
(in millions) | 31-Dec-13 | 31-Dec-12 | |||||||||
Land | $ | 81 | $ | 81 | |||||||
Buildings and improvements | 917 | 873 | |||||||||
Equipment, furniture and fixtures | 2,461 | 2,348 | |||||||||
Capital in progress | 211 | 218 | |||||||||
3,670 | 3,520 | ||||||||||
Less: accumulated depreciation | 2,124 | 1,956 | |||||||||
$ | 1,546 | $ | 1,564 | ||||||||
Accrued expenses | |||||||||||
As of | |||||||||||
(in millions) | 31-Dec-13 | 31-Dec-12 | |||||||||
Legal reserves | $ | 84 | $ | 100 | |||||||
Payroll and related liabilities | 488 | 452 | |||||||||
Accrued contingent consideration | 148 | 120 | |||||||||
Other | 628 | 612 | |||||||||
$ | 1,348 | $ | 1,284 | ||||||||
Other long-term liabilities | |||||||||||
As of | |||||||||||
(in millions) | 31-Dec-13 | 31-Dec-12 | |||||||||
Legal reserves | $ | 523 | $ | 391 | |||||||
Accrued income taxes | 1,283 | 1,215 | |||||||||
Accrued contingent consideration | 353 | 543 | |||||||||
Other long-term liabilities | 410 | 398 | |||||||||
$ | 2,569 | $ | 2,547 | ||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Expense (Benefit) [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
INCOME TAXES | |||||||||||||
Our income (loss) before income taxes consisted of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Domestic | $ | (774 | ) | $ | (1,265 | ) | $ | (437 | ) | ||||
Foreign | 551 | (2,842 | ) | 1,079 | |||||||||
$ | (223 | ) | $ | (4,107 | ) | $ | 642 | ||||||
The related provision (benefit) for income taxes consisted of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Current | |||||||||||||
Federal | $ | 46 | $ | 33 | $ | 45 | |||||||
State | (9 | ) | — | 8 | |||||||||
Foreign | 105 | 139 | 91 | ||||||||||
142 | 172 | 144 | |||||||||||
Deferred | |||||||||||||
Federal | (212 | ) | (204 | ) | 86 | ||||||||
State | (17 | ) | (7 | ) | (8 | ) | |||||||
Foreign | (15 | ) | — | (21 | ) | ||||||||
(244 | ) | (211 | ) | 57 | |||||||||
$ | (102 | ) | $ | (39 | ) | $ | 201 | ||||||
The reconciliation of income taxes at the federal statutory rate to the actual provision (benefit) for income taxes is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. federal statutory income tax rate | (35.0 | )% | (35.0 | )% | 35 | % | |||||||
State income taxes, net of federal benefit | (7.9 | )% | (0.2 | )% | 0.5 | % | |||||||
State law changes on deferred tax | — | % | — | % | (1.2 | )% | |||||||
Effect of foreign taxes | (63.4 | )% | (3.7 | )% | (63.7 | )% | |||||||
Non-deductible acquisition expenses | 3.5 | % | — | % | (1.9 | )% | |||||||
Research credit | (12.2 | )% | — | % | (3.4 | )% | |||||||
Valuation allowance | (12.0 | )% | 0.3 | % | (2.9 | )% | |||||||
Divestitures | — | % | — | % | 25.4 | % | |||||||
Goodwill impairment charges | 65.2 | % | 36.4 | % | 38 | % | |||||||
Non-deductible expenses | 10.7 | % | 0.1 | % | 5.7 | % | |||||||
Uncertain domestic tax positions | 7 | % | 0.8 | % | 5.6 | % | |||||||
Other, net | (1.9 | )% | 0.3 | % | (5.8 | )% | |||||||
(46.0 | )% | (1.0 | )% | 31.3 | % | ||||||||
We had net deferred tax liabilities of $1.074 billion as of December 31, 2013 and $1.237 billion as of December 31, 2012. Gross deferred tax liabilities of $2.203 billion as of December 31, 2013 and $2.310 billion as of December 31, 2012 relate primarily to intangible assets acquired in connection with our prior acquisitions. Gross deferred tax assets of $1.129 billion as of December 31, 2013 and $1.073 billion as of December 31, 2012 relate primarily to the establishment of inventory and product-related reserves; litigation, product liability and other reserves and accruals; stock-based compensation; net operating loss carryforwards and tax credit carryforwards; and the federal benefit of uncertain tax positions. | |||||||||||||
We reduce our deferred tax assets by a valuation allowance if, based upon the weight of available evidence, it is more likely than not that we will not realize some portion or all of the deferred tax assets. We consider relevant evidence, both positive and negative, to determine the need for a valuation allowance. Information evaluated includes our financial position and results of operations for the current and preceding years, the availability of deferred tax liabilities and tax carrybacks, as well as an evaluation of currently available information about future years. | |||||||||||||
Significant components of our deferred tax assets and liabilities are as follows: | |||||||||||||
As of December 31, | |||||||||||||
(in millions) | 2013 | 2012 | |||||||||||
Deferred Tax Assets: | |||||||||||||
Inventory costs, intercompany profit and related reserves | $ | 116 | $ | 136 | |||||||||
Tax benefit of net operating loss and credits | 513 | 497 | |||||||||||
Reserves and accruals | 221 | 300 | |||||||||||
Restructuring-related charges and purchased research and development | 17 | 13 | |||||||||||
Litigation and product liability reserves | 198 | 48 | |||||||||||
Unrealized gains and losses on derivative financial instruments | — | — | |||||||||||
Investment write-down | 15 | 13 | |||||||||||
Compensation related | 143 | 171 | |||||||||||
Federal benefit of uncertain tax positions | 166 | 157 | |||||||||||
Other | 39 | 54 | |||||||||||
1,428 | 1,389 | ||||||||||||
Less valuation allowance | (299 | ) | (316 | ) | |||||||||
1,129 | 1,073 | ||||||||||||
Deferred Tax Liabilities: | |||||||||||||
Property, plant and equipment | 78 | 101 | |||||||||||
Unrealized gains and losses on derivative financial instruments | 80 | 21 | |||||||||||
Intangible assets | 2,045 | 2,187 | |||||||||||
Other | — | 1 | |||||||||||
2,203 | 2,310 | ||||||||||||
Net Deferred Tax Liabilities | $ | 1,074 | $ | 1,237 | |||||||||
Our deferred tax assets and liabilities are included in the following locations within our accompanying consolidated balance sheets (in millions): | |||||||||||||
Location in | As of December 31, | ||||||||||||
Component | Balance Sheet | 2013 | 2012 | ||||||||||
Current deferred tax asset | Deferred income taxes | $ | 288 | $ | 433 | ||||||||
Non-current deferred tax asset | Other long-term assets | 42 | 54 | ||||||||||
Deferred Tax Assets | 330 | 487 | |||||||||||
Current deferred tax liability | Other current liabilities | 2 | 11 | ||||||||||
Non-current deferred tax liability | Deferred income taxes | 1,402 | 1,713 | ||||||||||
Deferred Tax Liabilities | 1,404 | 1,724 | |||||||||||
Net Deferred Tax Liabilities | $ | 1,074 | $ | 1,237 | |||||||||
As of December 31, 2013, we had U.S. tax net operating loss carryforwards and tax credits, the tax effect of which was $216 million, as compared to $184 million as of December 31, 2012. In addition, we had foreign tax net operating loss carryforwards and tax credits, the tax effect of which was $313 million as of December 31, 2013, as compared to $341 million as of December 31, 2012. These tax attributes will expire periodically beginning in 2014. After consideration of all positive and negative evidence, we believe that it is more likely than not that a portion of the deferred tax assets will not be realized. As a result, we established a valuation allowance of $299 million as of December 31, 2013 and $316 million as of December 31, 2012. The decrease in the valuation allowance as of December 31, 2013, as compared to December 31, 2012, is attributable primarily due to greater than expected net operating loss utilization as well as a change in judgment related to expected ability to realize certain deferred tax assets. The income tax impact of the unrealized gain or loss component of other comprehensive income was a charge of $72 million in 2013, a charge of $43 million in 2012, and a benefit of $1 million in 2011. | |||||||||||||
We do not provide income taxes on unremitted earnings of our foreign subsidiaries where we have indefinitely reinvested such earnings in our foreign operations. We do not believe it is practicable to estimate the amount of income taxes payable on the earnings that are indefinitely reinvested in foreign operations due to the complexities of this calculation. Unremitted earnings of our foreign subsidiaries that we have indefinitely reinvested in foreign operations were $11.902 billion as of December 31, 2013 and $11.041 billion as of December 31, 2012. | |||||||||||||
We obtain tax incentives through Free Trade Zone Regime offered in Costa Rica which allows 100% exemption from income tax in the first eight years of operations and 50% exemption in the following four years. This tax incentive resulted in income tax savings of $6 million, $7 million, and $2 million for the years 2013, 2012 and 2011, respectively. The tax incentive for 100% exemption from income tax is expected to expire in 2015. The impact of per share earnings is immaterial for 2013, 2012, and 2011. | |||||||||||||
As of December 31, 2013, we had $1.069 billion of gross unrecognized tax benefits, of which a net $939 million, if recognized, would affect our effective tax rate. As of December 31, 2012, we had $1.052 billion of gross unrecognized tax benefits, of which a net $902 million, if recognized, would affect our effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning Balance | $ | 1,052 | $ | 987 | $ | 965 | |||||||
Additions based on positions related to the current year | 58 | 54 | 104 | ||||||||||
Additions based on positions related to prior years | 45 | 43 | 8 | ||||||||||
Reductions for tax positions of prior years | (40 | ) | (27 | ) | (72 | ) | |||||||
Settlements with taxing authorities | (15 | ) | (1 | ) | (3 | ) | |||||||
Statute of limitation expirations | (31 | ) | (4 | ) | (15 | ) | |||||||
Ending Balance | $ | 1,069 | $ | 1,052 | $ | 987 | |||||||
We are subject to U.S. Federal income tax as well as income tax of multiple state and foreign jurisdictions. We have concluded all U.S. federal income tax matters through 2000 and substantially all material state, local and foreign income tax matters through 2003. | |||||||||||||
We have received Notices of Deficiency from the IRS reflecting proposed audit adjustments for Guidant Corporation for its 2001 through 2006 tax years and Boston Scientific Corporation for its 2006 and 2007 tax years. Subsequent to issuing these Notices, the IRS conceded a portion of its original assessment. The total incremental tax liability now asserted by the IRS for the applicable periods is $1.162 billion plus interest. The primary issue in dispute for all years is the transfer pricing in connection with the technology license agreements between domestic and foreign subsidiaries of Guidant. In addition, the IRS has proposed adjustments in connection with the financial terms of our Transaction Agreement with Abbott Laboratories pertaining to the sale of Guidant's vascular intervention business to Abbott in April 2006. We do not agree with the transfer pricing methodologies applied by the IRS or its resulting assessment and we believe that the IRS has exceeded its authority by attempting to adjust the terms of our negotiated third-party agreement with Abbott. In addition, we believe that the IRS positions with regard to these matters are inconsistent with the applicable tax laws and the existing Treasury regulations. | |||||||||||||
We believe we have meritorious defenses for our tax filings and we have filed, or will timely file, petitions with the U.S. Tax Court contesting the Notices of Deficiency for the tax years in challenge. No payments on the net assessment would be required until the dispute is definitively resolved, which, based on experiences of other companies, could take several years. The IRS is currently examining the 2008 through 2010 tax years of Boston Scientific. During the first quarter of 2014 we were notified by the IRS of their intent to propose significant adjustments to our tax returns for these tax years based upon the same transfer pricing methodologies that are currently being contested in U.S. Tax Court for our tax years prior to 2008. As with the prior years, we disagree with the transfer pricing methodologies being applied by the IRS and we expect to contest any adjustments received through applicable IRS and judicial procedures, as appropriate. We believe that our income tax reserves associated with these matters are adequate and the final resolution will not have a material impact on our financial condition or results of operations. However, final resolution is uncertain and could have a material impact on our financial condition or results of operations. | |||||||||||||
We recognize interest and penalties related to income taxes as a component of income tax expense. We had $402 million accrued for gross interest and penalties as of December 31, 2013 and $364 million as of December 31, 2012. The increase in gross interest and penalties was the result of $38 million recognized in our consolidated statements of operations. We recognized $22 million of interest and penalties related to income taxes in 2013, recognized $34 million in 2012 and released $18 million in 2011. | |||||||||||||
It is reasonably possible that within the next 12 months we will resolve multiple issues including transfer pricing and transactional related issues with foreign, federal and state taxing authorities, in which case we could record a reduction in our balance of unrecognized tax benefits of up to $27 million. | |||||||||||||
In September 2013, Treasury and the Internal Revenue Service issued final regulations regarding the deduction and capitalization of expenditures related to tangible property under Internal Revenue Code Sections (“IRC”) 162, 167 and 263(a). These regulations apply to amounts paid to acquire, produce, or improve tangible property as well as dispositions of such property. The general effective date is tax years beginning on or after January 1, 2014. We have evaluated these regulations and determined that they will not have a material impact on our results of operations. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
The medical device market in which we primarily participate is largely technology driven. As a result, intellectual property rights, particularly patents and trade secrets, play a significant role in product development and differentiation. Over the years, there has been litigation initiated against us by others, including our competitors, claiming that our current or former product offerings infringe patents owned or licensed by them. Intellectual property litigation is inherently complex and unpredictable. In addition, competing parties frequently file multiple suits to leverage patent portfolios across product lines, technologies and geographies and to balance risk and exposure between the parties. In some cases, several competitors are parties in the same proceeding, or in a series of related proceedings, or litigate multiple features of a single class of devices. These forces frequently drive settlement not only for individual cases, but also for a series of pending and potentially related and unrelated cases. Although monetary and injunctive relief is typically sought, remedies and restitution are generally not determined until the conclusion of the trial court proceedings and can be modified on appeal. Accordingly, the outcomes of individual cases are difficult to time, predict or quantify and are often dependent upon the outcomes of other cases in other geographies. | |
During recent years, we successfully negotiated closure of several long-standing legal matters and have received favorable legal rulings in several other matters; however, there continues to be outstanding intellectual property litigation. Adverse outcomes in one or more of these matters could have a material adverse effect on our ability to sell certain products and on our operating margins, financial position, results of operations and/or liquidity. | |
In the normal course of business, product liability, securities and commercial claims are asserted against us. Similar claims may be asserted against us in the future related to events not known to management at the present time. We maintain an insurance policy providing limited coverage against securities claims, and we are substantially self-insured with respect to product liability claims and fully self-insured with respect to intellectual property infringement claims. The absence of significant third-party insurance coverage increases our potential exposure to unanticipated claims or adverse decisions. Product liability claims, securities and commercial litigation, and other legal proceedings in the future, regardless of their outcome, could have a material adverse effect on our financial position, results of operations and/or liquidity. | |
In addition, like other companies in the medical device industry, we are subject to extensive regulation by national, state and local government agencies in the United States and other countries in which we operate. From time to time we are the subject of qui tam actions and governmental investigations often involving regulatory, marketing and other business practices. These qui tam actions and governmental investigations could result in the commencement of civil and criminal proceedings, substantial fines, penalties and administrative remedies and have a material adverse effect on our financial position, results of operations and/or liquidity. | |
We record losses for claims in excess of the limits of purchased insurance in earnings at the time and to the extent they are probable and estimable. In accordance with ASC Topic 450, Contingencies, we accrue anticipated costs of settlement, damages, losses for general product liability claims and, under certain conditions, costs of defense, based on historical experience or to the extent specific losses are probable and estimable. Otherwise, we expense these costs as incurred. If the estimate of a probable loss is a range and no amount within the range is more likely, we accrue the minimum amount of the range. | |
Our accrual for legal matters that are probable and estimable was $607 million as of December 31, 2013 and $491 million as of December 31, 2012, and includes certain estimated costs of settlement, damages and defense. The increase in our legal accrual was primarily due to litigation-related charges recorded during the year. During 2013, 2012 and 2011, we recorded litigation-related charges in the amount of $221 million, $192 million, and $48 million, respectively. We continue to assess certain litigation and claims to determine the amounts, if any, that management believes will be paid as a result of such claims and litigation and, therefore, additional losses may be accrued and paid in the future, which could materially adversely impact our operating results, cash flows and/or our ability to comply with our debt covenants. | |
In management's opinion, we are not currently involved in any legal proceedings other than those specifically identified below, which, individually or in the aggregate, could have a material adverse effect on our financial condition, operations and/or cash flows. Unless included in our legal accrual or otherwise indicated below, a range of loss associated with any individual material legal proceeding cannot be estimated. | |
Patent Litigation | |
On September 22, 2009, Cordis Corporation, Cordis LLC and Wyeth Corporation filed a complaint for patent infringement against Abbott Laboratories, Abbott Cardiovascular Systems, Inc., Boston Scientific Scimed, Inc. and us alleging that the PROMUS® coronary stent system, supplied to us by Abbott, infringes a patent (the Llanos patent) owned by Cordis and Wyeth. The suit was filed in the U.S. District Court for the District of New Jersey seeking monetary and injunctive relief. In August 2010, Cordis filed an amended complaint to add an additional patent and in September 2010, we filed counterclaims of invalidity and non-infringement. On October 26, 2011, the District Court granted Cordis' motion to add the Promus Element stent system to the case. On February 6, 2012, the District Court granted our motion to stay the action until the conclusion of the reexaminations against the Llanos patents that are pending in the U.S. Patent and Trademark Office. | |
On May 19, 2005, G. David Jang, M.D. filed suit against us alleging breach of contract relating to certain patent rights covering stent technology. The suit was filed in the U.S. District Court for the Central District of California seeking monetary damages and rescission of contract. After a Markman ruling relating to the Jang patent rights, Dr. Jang stipulated to the dismissal of certain claims alleged in the complaint with a right to appeal and the parties subsequently agreed to settle the other claims. In May 2007, Dr. Jang filed an appeal with respect to the remaining patent claims and in July 2008, the Court of Appeals vacated the District Court's consent judgment and remanded the case back to the District Court for further clarification. In August 2011, the District Court entered a stipulated judgment that we did not infringe the Jang patent. Dr. Jang filed an appeal on September 21, 2011 and on August 22, 2012, the Court of Appeals vacated the District Court's judgment and remanded the case to the District Court for further proceedings. | |
On May 25, 2010, Dr. Jang filed suit against Boston Scientific Scimed, Inc. and us alleging breach of contract relating to certain patent rights covering stent technology. In October 2011, the U.S. District Court for the District of Delaware entered judgment in favor of us on the pleadings. Dr. Jang filed an appeal on August 28, 2012. On September 5, 2013, the Court of Appeals for the Third Circuit vacated the ruling and remanded the case to the District Court. | |
On September 27, 2010, Boston Scientific Scimed, Inc., Boston Scientific Ltd., Endovascular Technologies, Inc. and we filed suit against Taewoong Medical, Co., Ltd., Standard Sci-Tech, Inc., EndoChoice, Inc. and Sewoon Medical Co., Ltd for infringement of three patents on stents for use in the GI system (the Pulnev and Hankh patents) and against Cook Medical Inc. (and related entities) for infringement of the same three patents and an additional patent (the Thompson patent). The suit was filed in the U.S. District Court for the District of Massachusetts seeking monetary damages and injunctive relief. In December 2010, we amended our complaint to add infringement of six additional Pulnev patents. In January 2011, the defendants filed a counterclaim of invalidity and unenforceability. In December 2011, we amended the complaint to add Chek-Med Systems d/b/a GI Supply as a defendant. | |
On May 17, 2010, Dr. Luigi Tellini filed suit against us and certain of our subsidiaries, Guidant Italia S.r.l. and Boston Scientific S.p.A., in the Civil Tribunal in Milan, Italy alleging certain of our Cardiac Rhythm Management products infringe an Italian patent (the Tellini patent) owned by Dr. Tellini and seeking monetary damages. In January 2011, Dr. Tellini refiled amended claims after his initial claims were dismissed without prejudice to refile. | |
On May 16, 2013, Vascular Solutions, Inc. filed suit against us, alleging that its Guidezilla™ guide extension catheter infringes three U.S. patents owned by Vascular Solutions. The suit was filed in the U.S. District Court for the District of Minnesota seeking monetary and injunctive relief. On May 28, 2013 Vascular Solutions filed an amended complaint adding an allegation of copyright infringement. On June 10, 2013, Vascular Solutions filed a motion requesting a preliminary injunction. On July 11, 2013 we answered the amended complaint and filed a counterclaim against Vascular Solutions, alleging that its Guideliner™ guide extension catheter infringes a U.S. patent owned by us. On December 12, 2013, the District Court granted the motion for a preliminary injunction and on December 26, 2013, we filed an appeal. | |
On August 2, 2013, Medtronic Ardian Luxembourg S.a.r.l. filed a complaint against Boston Scientific Corporation and Boston Scientific Medizintechnik, GmbH in the Düsseldorf District Court in Germany alleging that the sale of our Vessix renal denervation product infringes a German patent owned by Medtronic Ardian. A hearing is scheduled for August 12, 2014. | |
On September 23, 2013, Kardiametrics, LLC filed a complaint in the United States District Court for the District of Delaware alleging that the sale of our FilterWire EZ Embolic Protection System, Sterling balloon catheters, Carotid NexStent and Carotid Wallstent products infringe two patents (the Azizi patents) owned by Kardiametrics. On January 24, 2014, we filed a motion to dismiss the case or in the alternative to stay the case pending an arbitration. | |
On February 18, 2014, Atlas IP, LLC filed a complaint in the United States District Court for the Southern District of Florida alleging that the sale of our LATITUDE® Patient Management System and implantable devices that communicate with the LATITUDE® device infringe a patent (the Fischer patent) owned by Atlas. | |
Product Liability Litigation | |
Fewer than ten individual lawsuits remain pending in various state and federal jurisdictions against Guidant alleging personal injuries associated with defibrillators or pacemakers involved in certain 2005 and 2006 product communications. Further, we are aware of approximately 30 Guidant product liability lawsuits pending in international jurisdictions associated with defibrillators or pacemakers, including devices involved in the 2005 and 2006 product communications. Six of these suits are pending in Canada and were filed as class actions, four of which are stayed pending the outcome of two lead class actions. On April 10, 2008, the Justice of Ontario Court certified a class of persons in whom defibrillators were implanted in Canada and a class of family members with derivative claims. On May 8, 2009, the Justice of Ontario Court certified a class of persons in whom pacemakers were implanted in Canada and a class of family members with derivative claims. In each case, these matters generally seek monetary damages from us. The parties in the defibrillator class action have reached an agreement in principle to settle the matter for approximately $3 million. The presiding judge has set an approval hearing for this settlement for March 24, 2014. | |
As of February 25, 2014, there were over 18,000 product liability cases or claims related to transvaginal surgical mesh products designed to treat stress urinary incontinence and pelvic organ prolapse pending against us. The cases are pending in various federal and state courts in the United States and include eight putative class actions. There were also over ten cases in Canada, inclusive of three putative class actions. Generally, the plaintiffs allege personal injury associated with use of our transvaginal surgical mesh products. The plaintiffs assert design and manufacturing claims, failure to warn, breach of warranty, fraud, violations of state consumer protection laws and loss of consortium claims. Over 1,700 of the cases have been specially assigned to one judge in state court in Massachusetts. On February 7, 2012, the Judicial Panel on Multi-District Litigation (MDL) established MDL-2326 in the U.S. District Court for the Southern District of West Virginia and transferred the federal court transvaginal surgical mesh cases to MDL-2326 for coordinated pretrial proceedings. In addition, in October 2012, the Attorney General for the State of California informed us that their office and certain other state attorneys general offices intended to initiate a civil investigation into our sale of transvaginal surgical mesh products. During the fourth quarter of 2013, we received written discovery requests from certain state attorneys general offices. We are responding to those requests. We have established a product liability accrual for known and estimated future cases and claims asserted against us as well as costs of defense thereof associated with our transvaginal surgical mesh products. While we believe that our accrual associated with this matter is adequate, changes to this accrual may be required in the future as additional information becomes available. We intend to vigorously contest the cases and claims asserted against us; however, the final resolution is uncertain and could have a material impact on our results of operations, financial condition and/or liquidity. | |
Governmental Investigations and Qui Tam Matters | |
On June 27, 2008, the Republic of Iraq filed a complaint against our wholly-owned subsidiary, BSSA France, and 92 other defendants in the U.S. District Court of the Southern District of New York. The complaint alleges that the defendants acted improperly in connection with the sale of products under the United Nations Oil for Food Program. The complaint also alleges Racketeer Influenced and Corrupt Organizations Act (RICO) violations, conspiracy to commit fraud and the making of false statements and improper payments, and it seeks monetary and punitive damages. A hearing on the pending motion to dismiss was held on October 26, 2012, and on February 6, 2013, the District Court dismissed the complaint with prejudice on standing and jurisdictional grounds. The plaintiff filed an appeal, which is pending. | |
On March 12, 2010, we received a Civil Investigative Demand (CID) from the Civil Division of the U.S. Department of Justice (DOJ) requesting documents and information relating to reimbursement advice offered by us relating to certain CRM devices. We are cooperating with the request. | |
On August 3, 2012, we were served with a qui tam complaint that had previously been filed under seal against Boston Scientific Neuromodulation Corp. in the U.S. District Court for the District of New Jersey on March 2, 2011. On August 8, 2012, we learned that the federal government had previously declined to intervene in this matter. The relators’ complaint, now unsealed, alleges that Boston Scientific Neuromodulation Corp. violated the federal and various states' false claims acts through submission of fraudulent bills for implanted devices, under-reporting of certain adverse events, and promotion of off-label uses. On September 10, 2012, the relators filed an amended complaint revising and restating certain of the claims in the original complaint. Our motion to dismiss, filed subsequently, was denied on May 31, 2013, and on June 28, 2013, we answered the amended complaint and brought certain counterclaims arising from relators’ unauthorized removal of documents from the business during their employments, which the relators moved to dismiss on July 22, 2013. | |
Other Proceedings | |
On September 25, 2006, Johnson & Johnson filed a lawsuit against us, Guidant and Abbott Laboratories in the U.S. District Court for the Southern District of New York. The complaint alleges that Guidant breached certain provisions of the amended merger agreement between Johnson & Johnson and Guidant (Merger Agreement) as well as the implied duty of good faith and fair dealing. The complaint further alleges that Abbott and we tortiously interfered with the Merger Agreement by inducing Guidant's breach. The complaint seeks certain factual findings, damages in an amount no less than $5.5 billion and attorneys' fees and costs. In August 2007, the judge dismissed the tortious interference claims against us and Abbott and the implied duty of good faith and fair dealing claim against Guidant. On June 20, 2011, Guidant filed a motion for summary judgment, and the hearing on this motion was held on July 25, 2012. | |
On October 5, 2007, Dr. Tassilo Bonzel filed a complaint against Pfizer, Inc. and our Schneider subsidiaries and us in the District Court in Kassel, Germany alleging that a 1995 license agreement related to a catheter patent is invalid under German law and seeking monetary damages. In June 2009, the District Court dismissed all but one of Dr. Bonzel's claims and in October 2009, he added new claims. We opposed the addition of the new claims. The District Court ordered Dr. Bonzel to select the claims he would pursue and in January 2011, he made that selection. A hearing is scheduled for March 28, 2014. | |
On September 28, 2011, we served a complaint against Mirowski Family Ventures LLC in the U.S. District Court for the Southern District of Indiana for a declaratory judgment that we have paid all royalties owed and did not breach any contractual or fiduciary obligations arising out of a license agreement. Mirowski answered and filed counterclaims requesting damages. On May 13, 2013, Mirowski Family Ventures served us with a complaint alleging breach of contract in Montgomery County Circuit Court, Maryland, and they amended this complaint on August 1, 2013. On July 29, 2013, the Indiana case was dismissed. On September 10, 2013, we removed the case to the United States District Court for the District of Maryland. A motion to remand the case back to the Montgomery County Circuit Court, Maryland is pending. | |
Refer to Note J - Income Taxes for information regarding our tax litigation. | |
Matters Concluded Since December 31, 2012 | |
On February 1, 2008, Wyeth Corporation and Cordis Corporation filed an amended complaint for patent infringement against Abbott Laboratories, adding us and Boston Scientific Scimed, Inc. as additional defendants to the complaint. The suit alleged that the PROMUS® coronary stent system, supplied to us by Abbott, infringes three U.S. patents (the Morris patents) owned by Wyeth and licensed to Cordis. The suit was filed in the U.S. District Court for the District of New Jersey seeking monetary and injunctive relief. Wyeth and Cordis subsequently withdrew their infringement claim as to one of the patents, and the District Court found the remaining two patents invalid. Wyeth and Cordis filed an appeal and on June 26, 2013, the Court of Appeals for the Federal Circuit affirmed the District Court’s judgment in favor of Boston Scientific. On October 13, 2013, Wyeth’s motion for rehearing or rehearing en banc was denied. The deadline for further appeals lapsed on January 13, 2014. | |
On December 4, 2009, we, along with Boston Scientific Scimed, Inc., filed a complaint for patent infringement against Cordis Corporation alleging that its Cypher Mini™ stent product infringes a U.S. patent (the Jang patent) owned by us. In April 2011, the U.S. District Court for the District of Delaware granted summary judgment that Cordis willfully infringed the Jang patent. After a trial on damages in May 2011, the jury found in favor of Boston Scientific for lost profits of approximately $18.5 million and royalties of approximately $1 million. On March 13, 2012, the District Court granted our motion for enhanced damages, resulting in a total damages award of approximately $41 million. On February 12, 2013, the Court of Appeals affirmed the District Court's judgment in favor of Boston Scientific. | |
On November 17, 2009, Boston Scientific Scimed, Inc. filed suit against OrbusNeich Medical, Inc. and certain of its subsidiaries in the Hague District Court in the Netherlands alleging that OrbusNeich's sale of the Genous stent infringes a patent owned by us (the Keith patent) and seeking monetary damages and injunctive relief. On March 13, 2012, the Hague Court of Appeals denied our request for preliminary relief. On April 2, 2013, the Hague Court of Appeals found the Keith patent invalid. | |
In December 2007, we were informed by the U.S. Attorney's Office for the Northern District of Texas that it was conducting an investigation of allegations related to improper promotion of biliary stents for off-label uses. The allegations were set forth in a qui tam complaint, which named us and certain of our competitors. Following the federal government's decision not to intervene in the case, the U.S. District Court for the Northern District of Texas unsealed the complaint. In March 2012, the District Court issued its opinion ordering that all claims against us be dismissed, some of which were dismissed with prejudice and some of which were dismissed without prejudice to the relator's right to amend those claims. On September 14, 2012, the relator filed and served an amended complaint restating the claims that the District Court dismissed without prejudice. On January 17, 2013, the District Court granted our motion to dismiss with prejudice all of the relator's remaining claims against us, and on May 13, 2013, the deadline for further appeals lapsed. | |
On October 17, 2008, we received a subpoena from the U.S. Department of Health and Human Services, Office of the Inspector General, requesting information related to the alleged use of a skin adhesive in certain of our CRM products. In early 2010, we learned that this subpoena was related to a qui tam action filed in the U.S. District Court for the Western District of New York. The Department of Justice intervened in the case in 2010. In October 2013 we entered into a settlement agreement with the parties pursuant to which we agreed to pay $30 million to the DOJ and $1 million in legal fees to Mr. Allen’s counsel, and we filed a joint motion with the parties to dismiss the case. The judge dismissed the case on October 31, 2013. | |
On January 15, 2010, Cordis Corporation filed a complaint against us and Boston Scientific Scimed, Inc. alleging that the PROMUS® coronary stent system, supplied to us by Abbott Laboratories, infringes three patents (the Fischell patents) owned by Cordis. The suit was filed in the U.S. District Court for the District of Delaware and sought monetary and injunctive relief. We filed counterclaims of invalidity and non-infringement. The District Court found that the PROMUS stent system does not infringe the Fischell patents and that our sales of this product were authorized. On May 13, 2013, the Court of Appeals for the Federal Circuit affirmed the District Court’s judgment in favor of Boston Scientific. The deadline for further appeals lapsed on August 12, 2013. | |
On October 21, 2011, the U.S. District Court for the District of Massachusetts unsealed a qui tam complaint that related to the subject matter of a U.S. Attorney for the District of Massachusetts investigation, which investigation has been discontinued and is described below, after the federal government declined to intervene in the matter. Subsequently, on January 30, 2012, the relator filed an amended complaint. On July 5, 2012, the District Court issued an opinion and order dismissing the amended complaint for lack of subject matter jurisdiction. On July 12, 2012, the relator appealed the judgment of dismissal to the U.S. Court of Appeals for the First Circuit. On May 31, 2013, the Court of Appeals rejected the relator's appeal and affirmed the dismissal of the amended complaint. The deadline for further appeals lapsed on August 29, 2013. | |
On March 16, 2009, OrbusNeich Medical, Inc. filed suit against us in the U.S. District Court for the District of Massachusetts, alleging that our VeriFLEX™ (Liberté®) bare-metal coronary stent system infringes two U.S. patents (the Addonizio and Pazienza patents) owned by it. The complaint also alleged breach of contract and misappropriation of trade secrets and sought monetary and injunctive relief. In September 2009, OrbusNeich filed an amended complaint against us alleging additional state law claims. In March 2010, the District Court dismissed OrbusNeich's unjust enrichment and fraud claims, but denied our motion to dismiss the remaining state law claims. OrbusNeich amended its complaint in April 2010 to add another patent (another Addonizio patent). In January 2011, OrbusNeich amended its complaint to drop its misappropriation of trade secret, statutory and unfair competition claims and in July 2011, it further amended its complaint to include allegations that our ION™ coronary stent system infringes two additional patents. On February 24, 2012, the District Court granted our motion to stay the patent claims, and on June 4, 2012, the District Court stayed the breach of contract claim, in each case, pending re-examination of the patents in suit. In addition, in February 2013, Orbus International B.V. filed suits against us and two Dutch subsidiaries in the Hague District Court in the Netherlands and Orbus Medical GmbH filed suit against us and one of our subsidiaries in the Dusseldorf District Court in Germany. In March 2013, Orbus Medical Inc. and Orbus International B.V. filed suit against us and two of our Irish subsidiaries in the Irish Commercial Court in Dublin, Ireland. Each of these matters alleges that our sale of stent systems using the Element design infringe European patents owned by Orbus Medical Inc. and licensed to other Orbus entities. In one Dutch matter, Orbus sought cross-border, preliminary injunctive relief, which the court denied on July 9, 2013. In the other Dutch matter, Orbus sought damages and injunctive relief. In one German matter, Orbus sought preliminary injunctive relief, which the Dusseldorf District Court granted on April 30, 2013. On that same date, we appealed the injunction to the Court of Appeals of Dusseldorf. In the other German matter, Orbus sought damages and injunctive relief. In the Irish matter, Orbus sought damages and injunctive relief. In March 2013, two of our subsidiaries filed suit against Orbus Medical Inc. in the English High Court seeking a declaration that the sale of the stent systems with the Element design does not infringe two Orbus patents and seeking to have the two patents found invalid. On June 5, 2013, Orbus cancelled one of the two UK patents. On September 15, 2013, the parties entered into a settlement agreement that resolves all stent-related cases brought by the parties in Germany, the Netherlands, Ireland, the United Kingdom and the United States. The agreement includes a one-time payment from us to OrbusNeich, with no future financial obligations. | |
On March 22, 2010, we received a subpoena from the U.S. Attorney's Office for the District of Massachusetts seeking documents relating to the former Market Development Sales Organization that operated within our CRM business. On October 21, 2011, the U.S. District Court for the District of Massachusetts unsealed a qui tam complaint that related to the subject matter of the U.S. Attorney's investigation, after the federal government declined to intervene in the matter. Subsequently, on January 30, 2012, the relator filed an amended complaint. The District Court case has been concluded and is described above. On October 30, 2013, the U.S. Attorney’s office informed us that the government was discontinuing its investigation. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity Attributable to Parent [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
STOCKHOLDERS' EQUITY | |
Preferred Stock | |
We are authorized to issue 50 million shares of preferred stock in one or more series and to fix the powers, designations, preferences and relative participating, option or other rights thereof, including dividend rights, conversion rights, voting rights, redemption terms, liquidation preferences and the number of shares constituting any series, without any further vote or action by our stockholders. As of December 31, 2013 and 2012, we had no shares of preferred stock issued or outstanding. | |
Common Stock | |
We are authorized to issue 2.0 billion shares of common stock, $0.01 par value per share. Holders of common stock are entitled to one vote per share. Holders of common stock are entitled to receive dividends, if and when declared by the Board of Directors, and to share ratably in our assets legally available for distribution to our stockholders in the event of liquidation. Holders of common stock have no preemptive, subscription, redemption, or conversion rights. The holders of common stock do not have cumulative voting rights. The holders of a majority of the shares of common stock can elect all of the directors and can control our management and affairs. | |
In July 2011, our Board of Directors approved a share repurchase program authorizing the repurchase of up to $1.0 billion in shares of our common stock and re-approved approximately 37 million shares remaining under a previous share repurchase program. On January 25, 2013, our Board of Directors approved a new stock repurchase program authorizing the repurchase of up to $1.0 billion of our common stock. Throughout 2013, we repurchased approximately 51 million shares of our common stock for $500 million. During 2012, we repurchased approximately 105 million shares of our common stock for $600 million. During 2011, we repurchased approximately 82 million shares of our common stock for $492 million. Repurchased shares are available for reissuance under our equity incentive plans and for general corporate purposes, including acquisitions. As of December 31, 2013, we had completed our share repurchase program authorized in 2011 and previous share repurchase programs. We had remaining $660 million authorized under our 2013 share repurchase program as of December 31, 2013. There were approximately 238 million shares in treasury as of December 31, 2013 and 187 million shares in treasury as of December 31, 2012. |
Stock_Ownership_Plans
Stock Ownership Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Stock Ownership Plans [Abstract] | ' | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | |||||||||||||
STOCK OWNERSHIP PLANS | ||||||||||||||
Employee and Director Stock Incentive Plans | ||||||||||||||
In March and May 2011, our Board of Directors and stockholders, respectively, approved our 2011 Long-Term Incentive Plan (the 2011 LTIP), authorizing up to 146 million shares of our common stock. The 2011 LTIP provides for the grant of restricted or unrestricted common stock, deferred stock units (DSU), options to acquire our common stock, stock appreciation rights, performance awards (market-based and performance-based DSUs) and other stock and non-stock awards. Shares reserved under our current and former stock incentive plans totaled approximately 242 million as of December 31, 2013, which includes 50 million shares that are reserved, but are not issuable, under frozen equity long-term incentive plans. The 2011 LTIP covers officers, directors, employees and consultants and provide for the grant of various incentives, including qualified and nonqualified stock options, deferred stock units, stock grants, share appreciation rights, performance-based awards and market-based awards. The Executive Compensation and Human Resources Committee of the Board of Directors, consisting of independent, non-employee directors, may authorize the issuance of common stock and authorize cash awards under the 2011 LTIP in recognition of the achievement of long-term performance objectives established by the Committee. | ||||||||||||||
Nonqualified options issued to employees are generally granted with an exercise price equal to the market price of our stock on the grant date, vest over a four-year service period, and have a ten-year contractual life. In the case of qualified options, if the recipient owns more than ten percent of the voting power of all classes of stock, the option granted will be at an exercise price of 110 percent of the fair market value of our common stock on the date of grant and will expire over a period not to exceed five years. Non-vested stock awards (including restricted stock awards and deferred stock units issued to employees are generally granted with an exercise price of zero and typically vest in five equal annual installments. These awards represent our commitment to issue shares to recipients after the vesting period. Upon each vesting date, such awards are no longer subject to risk of forfeiture and we issue shares of our common stock to the recipient. | ||||||||||||||
The following presents the impact of stock-based compensation on our consolidated statements of operations for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
(in millions, except per share data) | 2013 | 2012 | 2011 | |||||||||||
Cost of products sold | $ | 8 | $ | 15 | $ | 25 | ||||||||
Selling, general and administrative expenses | 79 | 69 | 74 | |||||||||||
Research and development expenses | 18 | 24 | 29 | |||||||||||
105 | 108 | 128 | ||||||||||||
Less: income tax benefit | (29 | ) | (32 | ) | (34 | ) | ||||||||
$ | 76 | $ | 76 | $ | 94 | |||||||||
Net impact per common share - basic | $ | 0.06 | $ | 0.05 | $ | 0.06 | ||||||||
Net impact per common share - assuming dilution | $ | 0.06 | $ | 0.05 | $ | 0.06 | ||||||||
Stock Options | ||||||||||||||
We generally use the Black-Scholes option-pricing model to calculate the grant-date fair value of stock options granted to employees under our stock incentive plans. We calculated the fair value for options granted during 2013, 2012 and 2011 using the following estimated weighted-average assumptions: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Options granted (in thousands) | 1,992 | 4,726 | 16,311 | |||||||||||
Weighted-average exercise price | $ | 7.44 | $ | 6.23 | $ | 7.11 | ||||||||
Weighted-average grant-date fair value | $ | 2.84 | $ | 2.6 | $ | 3.07 | ||||||||
Black-Scholes Assumptions | ||||||||||||||
Expected volatility | 36 | % | 43 | % | 42 | % | ||||||||
Expected term (in years, weighted) | 5.9 | 5.9 | 6.1 | |||||||||||
Risk-free interest rate | 0.89% - 1.72% | 0.95% - 1.15% | 1.16% - 2.61% | |||||||||||
Expected Volatility | ||||||||||||||
We use our historical volatility and implied volatility as a basis to estimate expected volatility in our valuation of stock options. | ||||||||||||||
Expected Term | ||||||||||||||
We estimate the expected term of options using historical exercise and forfeiture data. We believe that this historical data are the best estimate of the expected term of new option grants. | ||||||||||||||
Risk-Free Interest Rate | ||||||||||||||
We use yield rates on U.S. Treasury securities for a period approximating the expected term of the award to estimate the risk-free interest rate in our grant-date fair value assessment. | ||||||||||||||
Expected Dividend Yield | ||||||||||||||
We have not historically paid cash dividends to our shareholders and currently do not intend to pay cash dividends. Therefore, we have assumed an expected dividend yield of zero in our grant-date fair value assessment. | ||||||||||||||
Information related to stock options for 2013, 2012 and 2011 under stock incentive plans is as follows: | ||||||||||||||
Stock Options | Weighted | Weighted | Aggregate | |||||||||||
(in thousands) | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | (in millions) | ||||||||||||
Life (in years) | ||||||||||||||
Outstanding as of December 31, 2010 | 60,374 | $ | 14 | |||||||||||
Granted | 16,311 | 7 | ||||||||||||
Exercised | (18 | ) | 7 | |||||||||||
Cancelled/forfeited | (15,746 | ) | 12 | |||||||||||
Outstanding as of December 31, 2011 | 60,921 | $ | 13 | |||||||||||
Granted | 4,726 | 6 | ||||||||||||
Exercised | — | — | ||||||||||||
Cancelled/forfeited | (10,766 | ) | 15 | |||||||||||
Outstanding as of December 31, 2012 | 54,881 | $ | 12 | |||||||||||
Granted | 1,992 | 7 | ||||||||||||
Exercised | (7,221 | ) | 8 | |||||||||||
Cancelled/forfeited | (4,760 | ) | 21 | |||||||||||
Outstanding as of December 31, 2013 | 44,892 | $ | 12 | 5.2 | $ | 137 | ||||||||
Exercisable as of December 31, 2013 | 32,927 | $ | 13 | 4.3 | 77 | |||||||||
Expected to vest as of December 31, 2013 | 11,433 | 7 | 7.6 | 58 | ||||||||||
Total vested and expected to vest as of December 31, 2013 | 44,360 | $ | 12 | 5.1 | $ | 135 | ||||||||
The total intrinsic value of stock options exercised was $24 million in 2013 and less than $1 million in 2012 and 2011. | ||||||||||||||
Non-Vested Stock | ||||||||||||||
We value restricted stock awards and DSUs based on the closing trading value of our shares on the date of grant. Information related to non-vested stock awards during 2013, 2012, and 2011 is as follows: | ||||||||||||||
Non-Vested | Weighted | |||||||||||||
Stock Award | Average | |||||||||||||
Units | Grant- | |||||||||||||
(in thousands) | Date Fair | |||||||||||||
Value | ||||||||||||||
Balance as of December 31, 2010 | 33,284 | $ | 9 | |||||||||||
Granted | 14,640 | 7 | ||||||||||||
Vested (1) | (10,344 | ) | 10 | |||||||||||
Forfeited | (4,004 | ) | 6 | |||||||||||
Balance as of December 31, 2011 | 33,576 | $ | 8 | |||||||||||
Granted | 17,073 | 6 | ||||||||||||
Vested (1) | (10,158 | ) | 9 | |||||||||||
Forfeited | (3,898 | ) | 7 | |||||||||||
Balance as of December 31, 2012 | 36,593 | $ | 7 | |||||||||||
Granted | 13,913 | 8 | ||||||||||||
Vested (1) | (10,307 | ) | 8 | |||||||||||
Forfeited | (2,860 | ) | 7 | |||||||||||
Balance as of December 31, 2013 | 37,339 | $ | 7 | |||||||||||
-1 | The number of restricted stock units vested includes shares withheld on behalf of employees to satisfy statutory tax withholding requirements. | |||||||||||||
The total vesting date fair value of stock award units that vested was approximately $80 million in 2013, $60 million in 2012 and $71 million in 2011. | ||||||||||||||
Market-based DSU Awards | ||||||||||||||
During 2013, 2012 and 2011, we granted target market-based DSU awards to certain members of our senior management team. The attainment of market-based DSUs is based on the total shareholder return (TSR) of our common stock as compared to the TSR of the common stock of the other companies in the S&P 500 Health Care Index over a three-year performance period and measured in three annual performance cycles. In addition, award recipients must remain employed by us throughout the three-year performance period to attain the full amount of market-based DSUs that satisfied the market performance criteria. | ||||||||||||||
We determined the fair value of the 2013 target market-based awards to be approximately $8 million and the fair values of the 2012 and 2011 market-based awards to be approximately $8 million. We determined these fair values based on Monte Carlo simulations as of the date of grant, utilizing the following assumptions: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Awards | Awards | Awards | ||||||||||||
Stock price on date of grant | $ | 7.39 | $ | 6.28 | $ | 7.16 | ||||||||
Measurement period (in years) | 3 | 3 | 3 | |||||||||||
Risk-free rate | 0.34 | % | 0.38 | % | 1.1 | % | ||||||||
We recognize the expense on these awards in our consolidated statements of operations on a straight-line basis over the three-year measurement period. | ||||||||||||||
Free Cash Flow Performance-based DSU Awards | ||||||||||||||
During 2013 and 2012, we granted target free cash flow performance-based DSU awards to certain members of our senior management team. The attainment of these performance-based DSUs is based on our 2013 and 2012 adjusted free cash flow (FCF) measured against our internal 2013 and 2012 annual financial plan performance for FCF, respectively. FCF is measured over a one-year performance period beginning January 1, 2013 and ending December 31, 2013 for the 2013 awards and January 1, 2012 and ending December 31, 2012 for the 2012 awards. The number of performance-based DSUs as to which the performance criteria under this program shall be determined to have been satisfied will be in a range of 0% to 150% of the target number of performance-based DSUs awarded to the participant. In addition, award recipients must remain employed by us throughout a three-year service period (inclusive of the performance period) to attain the full amount of performance-based DSUs that satisfied the performance criteria. | ||||||||||||||
We determined the fair value of the 2013 FCF awards to be approximately $9 million, based on the closing stock price at December 31, 2013 and an achievement of approximately 100% of the target payout, which is subject to approval by the Executive Compensation and Human Resources Committee of our Board of Directors. The per unit fair value is $12.02, which is the closing stock price on December 31, 2013. We determined the fair value of the 2012 FCF awards to be approximately $7 million and the per unit fair value was $5.73. | ||||||||||||||
We recognize the expense on these awards in our consolidated statements of operations over the vesting period which is three years after the date of grant. | ||||||||||||||
Expense Attribution | ||||||||||||||
We recognize compensation expense for our stock using a straight-line method over the substantive vesting period. Most of our stock awards provide for immediate vesting upon death or disability of the participant. In addition, our stock grants to employees provide for accelerated vesting of our stock-based awards, other than market-based awards, upon retirement. In accordance with the terms of our stock grants, for employees who will become retirement eligible prior to the vest date we expense stock-based awards, other than market-based awards, over the greater of one year or the period between grant date and retirement-eligibility. The market-based awards discussed above do not contain provisions that would accelerate the full vesting of the awards upon retirement-eligibility. | ||||||||||||||
We recognize stock-based compensation expense for the value of the portion of awards that are ultimately expected to vest. ASC Topic 718, Compensation – Stock Compensation requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The term “forfeitures” is distinct from “cancellations” or “expirations” and represents only the unvested portion of the surrendered stock-based award. We have applied, based on an analysis of our historical forfeitures, a weighted-average annual forfeiture rate of approximately nine percent to all unvested stock-based awards as of December 31, 2013, which represents the portion that we expect will be forfeited each year over the vesting period. We re-evaluate this analysis annually, or more frequently if there are significant changes in circumstances, and adjust the forfeiture rate as necessary. Ultimately, we will only recognize expense for those shares that vest. | ||||||||||||||
Unrecognized Compensation Cost | ||||||||||||||
We expect to recognize the following future expense for awards outstanding as of December 31, 2013: | ||||||||||||||
Unrecognized | Weighted | |||||||||||||
Compensation | Average | |||||||||||||
Cost | Remaining | |||||||||||||
(in millions)(1) | Vesting | |||||||||||||
Period | ||||||||||||||
(in years) | ||||||||||||||
Stock options | $ | 17 | ||||||||||||
Non-vested stock awards | 166 | |||||||||||||
$ | 183 | 1.4 | ||||||||||||
-1 | Amounts presented represent compensation cost, net of estimated forfeitures. | |||||||||||||
Employee Stock Purchase Plans | ||||||||||||||
Our global employee stock purchase plan provides for the granting of options to purchase up to 35 million shares of our common stock to all eligible employees. Under the global employee stock purchase plan, we grant each eligible employee, at the beginning of each six-month offering period, an option to purchase shares of our common stock equal to not more than ten percent of the employee’s eligible compensation or the statutory limit under the U.S. Internal Revenue Code. Such options may be exercised generally only to the extent of accumulated payroll deductions at the end of the offering period, at a purchase price equal to 85 percent of the fair market value of our common stock at the beginning or end of each offering period, whichever is less. As of December 31, 2013, there were approximately 8 million shares available for future issuance under the employee stock purchase plan. | ||||||||||||||
Information related to shares issued or to be issued in connection with the employee stock purchase plan based on employee contributions and the range of purchase prices is as follows: | ||||||||||||||
(shares in thousands) | 2013 | 2012 | 2011 | |||||||||||
Shares issued or to be issued | 3,833 | 3,979 | 3,830 | |||||||||||
Range of purchase prices | $5.01 - $7.96 | $4.82 - $5.16 | $4.81 - $6.22 | |||||||||||
We use the Black-Scholes option-pricing model to calculate the grant-date fair value of shares issued under the employee stock purchase plan. We recognize expense related to shares purchased through the employee stock purchase plan ratably over the offering period. We recognized $7 million in expense associated with our employee stock purchase plan in 2013, $4 million in 2012 and $5 million in 2011. |
Weighted_Average_Shares_Outsta
Weighted Average Shares Outstanding | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
EARNINGS PER SHARE | ' | |||||||
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
(in millions) | 2013 | 2012 | 2011 | |||||
Weighted average shares outstanding - basic | 1,341.20 | 1,406.70 | 1,509.30 | |||||
Net effect of common stock equivalents | — | — | 9.7 | |||||
Weighted average shares outstanding - assuming dilution | 1,341.20 | 1,406.70 | 1,519.00 | |||||
We generated net losses in 2013 and 2012. Our weighted-average shares outstanding for earnings per share calculations excluded common stock equivalents of 19 million and 8 million due to our net loss positions in 2013 and 2012, respectively. | ||||||||
Weighted-average shares outstanding, assuming dilution, also excludes the impact of 16 million stock options for 2013, 59 million for 2012, and 62 million for 2011, due to the exercise prices of these stock options being greater than the average fair market value of our common stock during the year. |
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
SEGMENT REPORTING | ' | ||||||||||||
SEGMENT REPORTING | |||||||||||||
Effective January 1, 2013, we reorganized our business from geographic regions to fully operationalized global business units. Following the reorganization, based on information regularly reviewed by our chief operating decision maker, we have three new reportable segments comprised of: Cardiovascular, Rhythm Management, and MedSurg. Our reportable segments represent an aggregate of operating segments. We have restated the 2012 and 2011 information to conform to our new global reportable segment presentation. | |||||||||||||
Each of our reportable segments generates revenues 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 and sales from divested businesses. Sales generated from reportable segments and divested businesses, as well as operating results of reportable segments, are 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 prior periods based on standard currency exchange rates used for the current period in order to remove the impact of foreign currency exchange fluctuations. Based on information regularly reviewed by our chief operating decision maker following our reorganization, we also restated certain expenses associated with our manufacturing and corporate operations. 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-recurring and/or non-operational, such as amounts related to goodwill and other intangible asset impairment charges; acquisition-, divestiture-, restructuring- and litigation-related charges and credits; 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 consolidated statements of operations is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Net sales | (restated) | (restated) | |||||||||||
Interventional Cardiology | $ | 2,055 | $ | 2,179 | $ | 2,444 | |||||||
Peripheral Interventions | 812 | 769 | 713 | ||||||||||
Cardiovascular | 2,867 | 2,948 | 3,157 | ||||||||||
Cardiac Rhythm Management | 1,919 | 1,927 | 2,072 | ||||||||||
Electrophysiology | 157 | 147 | 145 | ||||||||||
Rhythm Management | 2,076 | 2,074 | 2,217 | ||||||||||
Endoscopy | 1,331 | 1,242 | 1,158 | ||||||||||
Urology and Women's Health | 513 | 496 | 491 | ||||||||||
Neuromodulation | 454 | 367 | 336 | ||||||||||
MedSurg | 2,298 | 2,105 | 1,985 | ||||||||||
Net sales allocated to reportable segments | 7,241 | 7,127 | 7,359 | ||||||||||
Sales generated from business divestitures | 58 | 122 | 140 | ||||||||||
Impact of foreign currency fluctuations | (156 | ) | — | 123 | |||||||||
$ | 7,143 | $ | 7,249 | $ | 7,622 | ||||||||
Year Ended December 31, | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Depreciation expense | (restated) | (restated) | |||||||||||
Cardiovascular | $ | 111 | $ | 106 | $ | 116 | |||||||
Rhythm Management | 99 | 108 | 105 | ||||||||||
MedSurg | 73 | 74 | 73 | ||||||||||
Depreciation expense allocated to reportable segments | 283 | 288 | 294 | ||||||||||
Impact of foreign currency fluctuations | (4 | ) | — | 2 | |||||||||
$ | 279 | $ | 288 | $ | 296 | ||||||||
Year Ended December 31, | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Income (loss) before income taxes | (restated) | (restated) | |||||||||||
Cardiovascular | $ | 710 | $ | 739 | $ | 829 | |||||||
Rhythm Management | 232 | 242 | 320 | ||||||||||
MedSurg | 724 | 637 | 565 | ||||||||||
Operating income allocated to reportable segments | 1,666 | 1,618 | 1,714 | ||||||||||
Corporate expenses and currency exchange | (314 | ) | (258 | ) | (254 | ) | |||||||
Goodwill and intangible asset impairment charges and acquisition-, divestiture-, litigation-, and restructuring-related net charges | (822 | ) | (4,833 | ) | (135 | ) | |||||||
Amortization expense | (410 | ) | (395 | ) | (421 | ) | |||||||
Operating income (loss) | 120 | (3,868 | ) | 904 | |||||||||
Other expense, net | (343 | ) | (239 | ) | (262 | ) | |||||||
$ | (223 | ) | $ | (4,107 | ) | $ | 642 | ||||||
As of December 31, | |||||||||||||
(in millions) | 2013 | 2012 | |||||||||||
Total assets | (restated) | ||||||||||||
Cardiovascular | $ | 1,545 | $ | 1,535 | |||||||||
Rhythm Management | 1,343 | 1,350 | |||||||||||
MedSurg | 1,026 | 967 | |||||||||||
Total assets allocated to reportable segments | 3,914 | 3,852 | |||||||||||
Goodwill | 5,693 | 5,973 | |||||||||||
Other intangible assets, net | 5,950 | 6,289 | |||||||||||
All other corporate assets | 1,014 | 1,040 | |||||||||||
$ | 16,571 | $ | 17,154 | ||||||||||
Enterprise-Wide Information (based on actual currency exchange rates) | |||||||||||||
Year Ended December 31, | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Net sales | |||||||||||||
Interventional Cardiology | $ | 1,997 | $ | 2,179 | $ | 2,495 | |||||||
Cardiac Rhythm Management | 1,886 | 1,908 | 2,087 | ||||||||||
Endoscopy | 1,300 | 1,252 | 1,187 | ||||||||||
Peripheral Interventions | 789 | 774 | 731 | ||||||||||
Urology and Women’s Health | 505 | 500 | 498 | ||||||||||
Neuromodulation | 453 | 367 | 336 | ||||||||||
Electrophysiology | 155 | 147 | 147 | ||||||||||
7,085 | 7,127 | 7,481 | |||||||||||
Sales generated from divested businesses | 58 | 122 | 141 | ||||||||||
$ | 7,143 | $ | 7,249 | $ | 7,622 | ||||||||
United States | $ | 3,743 | $ | 3,756 | $ | 4,010 | |||||||
Japan | 744 | 931 | 951 | ||||||||||
Other countries | 2,598 | 2,440 | 2,520 | ||||||||||
7,085 | 7,127 | 7,481 | |||||||||||
Sales generated from divested businesses | 58 | 122 | 141 | ||||||||||
$ | 7,143 | $ | 7,249 | $ | 7,622 | ||||||||
As of December 31, | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Long-lived assets | |||||||||||||
United States | $ | 998 | $ | 1,065 | $ | 1,141 | |||||||
Ireland | 240 | 252 | 231 | ||||||||||
Other foreign countries | 308 | 247 | 298 | ||||||||||
Property, plant and equipment, net | 1,546 | 1,564 | 1,670 | ||||||||||
Goodwill | 5,693 | 5,973 | 9,761 | ||||||||||
Other intangible assets, net | 5,950 | 6,289 | 6,473 | ||||||||||
$ | 13,189 | $ | 13,826 | $ | 17,904 | ||||||||
Changes_in_Other_Comprehensive
Changes in Other Comprehensive Income | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Changes in Other Comprehensive Income [Abstract] | ' | ||||
Comprehensive Income (Loss) Note [Text Block] | ' | ||||
CHANGES IN OTHER COMPREHENSIVE INCOME | |||||
The following table provides the reclassifications out of other comprehensive income for the years ended December 31, 2013 and December 31, 2012. Amounts in the chart below are presented net of tax. | |||||
Year Ended December 31, 2013 | |||||
(in millions) | Foreign currency translation adjustments | Unrealized gains/losses on derivative financial instruments | Defined benefit pension items / Other | Total | |
Beginning Balance | ($26) | $34 | ($41) | ($33) | |
Other comprehensive income (loss) before reclassifications | 10 | 130 | 31 | 171 | |
(Gain)/Loss reclassified from accumulated other comprehensive income | — | -23 | -9 | -32 | |
Net current-period other comprehensive income | 10 | 107 | 22 | 139 | |
Ending Balance | ($16) | $141 | ($19) | $106 | |
Year Ended December 31, 2012 | |||||
(in millions) | Foreign currency translation adjustments | Unrealized gains/losses on derivative financial instruments | Defined benefit pension items / Other | Total | |
Beginning Balance | ($58) | ($48) | ($32) | ($138) | |
Other comprehensive income (loss) before reclassifications | 32 | 59 | 1 | 92 | |
(Gain)/Loss reclassified from accumulated other comprehensive income | — | 23 | -10 | 13 | |
Net current-period other comprehensive income | 32 | 82 | -9 | 105 | |
Ending Balance | ($26) | $34 | ($41) | ($33) | |
The income tax impact of the amounts in other comprehensive income for unrealized gains/losses on derivative financial instruments before reclassifications was an expense of $77 million in the year ended December 31, 2013 and an expense of $36 million in the year ended December 31, 2012. The gains and losses on derivative financial instruments reclassified from accumulated other comprehensive income were reduced by income tax impacts of $14 million in the year ended December 31, 2013 and $14 million in the year ended December 31, 2012. Refer to Note E – Fair Value Measurements for further detail on the reclassifications related to derivatives. | |||||
The income tax impact of the amounts in other comprehensive income for defined benefit and pension items before reclassifications was an expense of $15 million in the year ended December 31, 2013 and an expense of $1 million in the year ended December 31, 2012. The gains and losses on defined benefit and pension items reclassified from accumulated other comprehensive income were reduced by income tax impacts of $6 million in the year ended December 31, 2013 and $8 million in the year ended December 31, 2012. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2012 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
NEW ACCOUNTING PRONOUNCEMENTS | ' |
NEW ACCOUNTING PRONOUNCEMENTS | |
Standards Implemented | |
ASC Update No. 2013-02 | |
In February 2013, the FASB issued ASC Update No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income. Update No. 2013-02 requires that entities provide information about amounts reclassified out of accumulated other comprehensive income by component. The amendment also requires entities to present significant amounts by the respective line items of net income, either on the face of the income statement or in the notes to the financial statements for amounts required to be reclassified out of accumulated other comprehensive income in their entirety in the same reporting period. For other amounts that are not required to be reclassified to net income in their entirety, a cross-reference is required to other disclosures that provide additional details about those amounts. We adopted Update No. 2013-02 beginning in our first quarter ended March 31, 2013. Update No. 2013-02 is related to presentation only and its adoption did not impact our results of operations or financial position. See our Consolidated Statements of Comprehensive Income (Loss) and Note M - Changes in Other Comprehensive Income to our 2013 consolidated financial statements for the required disclosures under Update No. 2013-02. | |
ASC Update No. 2013-01 | |
In January 2013, the FASB issued ASC Update No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. Update No. 2013-01 clarifies the FASB's intent about requiring enhanced disclosures about certain financial instruments and derivative instruments that are offset in the statement of financial position or that are subject to enforceable master netting arrangements or similar agreements. We adopted Update No. 2013-01 beginning in our first quarter ended March 31, 2013. See Note E - Fair Value Measurements to our 2013 consolidated financial statements for the required disclosures under Update No. 2013-01. | |
Standards to be Implemented | |
ASC Update No. 2013-11 | |
In July 2013, the FASB issued ASC Update No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Update No. 2013-11 requires that entities present an unrecognized tax benefit, or portion of an unrecognized tax benefit, as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with certain exceptions. We are required to adopt Update No. 2013-11 for our first quarter ending March 31, 2014. Update No. 2013-11 is related to presentation only and its adoption will not impact our results of operations or financial position. |
Schedule_II
Schedule II | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | |||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | ' | |||||||||||||||||
Description | Balance at | Charges to | Deductions to | Charges to | Balance at | |||||||||||||
Beginning of Year | Costs and | Allowances for | (Deductions from) | End of Year | ||||||||||||||
Expenses (a) | Uncollectible | Other Accounts (c) | ||||||||||||||||
Accounts (b) | ||||||||||||||||||
Year Ended December 31, 2013: | ||||||||||||||||||
Allowances for uncollectible accounts and sales returns and allowances | $ | 119 | 5 | (12 | ) | — | $ | 112 | ||||||||||
Year Ended December 31, 2012: | ||||||||||||||||||
Allowances for uncollectible accounts and sales returns and allowances | $ | 116 | 14 | (7 | ) | (4 | ) | $ | 119 | |||||||||
Year Ended December 31, 2011: | ||||||||||||||||||
Allowances for uncollectible accounts and sales returns and allowances | $ | 125 | 11 | (13 | ) | (7 | ) | $ | 116 | |||||||||
Significant_Accounting_Policie1
Significant Accounting Policies Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Significant Accounting Policies [Abstract] | ' | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | ||||||||||||
Principles of Consolidation | |||||||||||||
Our consolidated financial statements include the accounts of Boston Scientific Corporation and our wholly-owned subsidiaries, after the elimination of intercompany transactions. We assess the terms of our investment interests to determine if any of our investees meet the definition of a variable interest entity (VIE). For any VIEs, we perform an analysis to determine whether our variable interests give us a controlling financial interest in a VIE. The analysis identifies the primary beneficiary of a VIE as the enterprise that has both 1) the power to direct activities of a VIE that most significantly impact the entity’s economic performance and 2) the obligation to absorb losses of the entity or the right to receive benefits from the entity. Based on our assessments under the applicable guidance, we did not have significant interests in any VIEs and therefore did not consolidate any VIEs during the years ended December 31, 2013, 2012, and 2011. | |||||||||||||
On January 3, 2011, we closed the sale of our Neurovascular business to Stryker Corporation (Stryker). Due to our continuing involvement in the operations of the Neurovascular business following the divestiture, the divestiture did not meet the criteria for presentation as a discontinued operation and, therefore, the results of the Neurovascular business are included in our results of operations for all periods presented. Refer to Note C – Divestitures for a description of this business divestiture. | |||||||||||||
Basis of Presentation | |||||||||||||
The accompanying consolidated financial statements of Boston Scientific Corporation have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and with the instructions to Form 10-K and Article 10 of Regulation S-X. | |||||||||||||
Reclassification | |||||||||||||
Effective as of January 1, 2013, we reorganized our business from geographic regions to fully operationalized global business units. Our reorganization changed our reporting structure and changed the composition of our reporting units. We have reclassified certain prior year amounts to conform to the current year’s presentation. See Note D - Goodwill and Other Intangible Assets and Note O – Segment Reporting for further details. | |||||||||||||
Subsequent Events, Policy [Policy Text Block] | ' | ||||||||||||
Subsequent Events | |||||||||||||
We evaluate events occurring after the date of our accompanying consolidated balance sheets for potential recognition or disclosure in our financial statements. We did not identify any material subsequent events requiring adjustment to our accompanying consolidated financial statements (recognized subsequent events). Those items requiring disclosure (unrecognized subsequent events) in the financial statements have been disclosed accordingly. Refer to Note J– Income Taxes and Note K– Commitments and Contingencies for more information. | |||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||||
Accounting Estimates | |||||||||||||
To prepare our consolidated financial statements in accordance with U.S. GAAP, management makes estimates and assumptions that may affect the reported amounts of our assets and liabilities, the disclosure of contingent liabilities as of the date of our financial statements and the reported amounts of our revenues and expenses during the reporting period. Our actual results may differ from these estimates. Refer to Critical Accounting Estimates included in Item 7 of this Annual Report for further discussion. | |||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||||||
Cash and Cash Equivalents | |||||||||||||
We record cash and cash equivalents in our consolidated balance sheets at cost, which approximates fair value. Our policy is to invest excess cash in short-term marketable securities earning a market rate of interest without assuming undue risk to principal, and we limit our direct exposure to securities in any one industry or issuer. We consider all highly liquid investments purchased with a remaining maturity of three months or less at the time of acquisition to be cash equivalents. | |||||||||||||
We record available-for-sale investments at fair value and exclude unrealized gains and temporary losses on available-for-sale securities from earnings, reporting such gains and losses, net of tax, as a separate component of stockholders’ equity, until realized. We compute realized gains and losses on sales of available-for-sale securities based on the average cost method, adjusted for any other-than-temporary declines in fair value. We held no available-for-sale securities during 2013, 2012, and 2011. | |||||||||||||
Concentration Risk Disclosure [Text Block] | ' | ||||||||||||
Concentrations of Credit Risk | |||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, derivative financial instrument contracts and accounts and notes receivable. Our investment policy limits exposure to concentrations of credit risk and changes in market conditions. Counterparties to financial instruments expose us to credit-related losses in the event of nonperformance. We transact our financial instruments with a diversified group of major financial institutions with investment grade credit ratings and actively monitor their credit ratings and our outstanding positions to limit our credit exposure. We provide credit, in the normal course of business, to hospitals, healthcare agencies, clinics, doctors' offices and other private and governmental institutions and generally do not require collateral. We record our accounts receivable in our consolidated balance sheets at net realizable value. We perform on-going credit evaluations of our customers and maintain allowances for potential credit losses, based on historical information and management's best estimates. Amounts determined to be uncollectible are written off against this reserve. We recorded write-offs of uncollectible accounts receivable of $12 million in 2013, $7 million in 2012, and $13 million in 2011. We are not dependent on any single institution and no single customer accounted for more than ten percent of our net sales in 2013, 2012, or 2011 or accounts receivable at December 31, 2013 or 2012; however, large group purchasing organizations, hospital networks and other buying groups have become increasingly important to our business and represent a substantial portion of our U.S. net sales. | |||||||||||||
We closely monitor outstanding receivables for potential collection risks, including those that may arise from economic conditions, in both the U.S. and international economies. Our European sales to government-owned or supported customers in Southern Europe, specifically Greece, Italy, Spain and Portugal are subject to an increased number of days outstanding above historical levels prior to payment. Historically, receivable balances with certain publicly-owned hospitals in these countries accumulate over a period of time and are then subsequently settled as large lump sum payments. While we believe our allowance for doubtful accounts in these countries is adequate as of December 31, 2013, if significant changes were to occur in the payment practices of these European governments or if government funding becomes unavailable, we may not be able to collect on receivables due to us from these customers and our write-offs of uncollectible amounts may increase. As of December 31, 2013, our net receivables in these countries greater than 180 days past due totaled approximately $95 million, of which approximately $50 million were past due greater than 360 days. | |||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||||||
Revenue Recognition | |||||||||||||
We generate revenue primarily from the sale of single-use medical devices, and present revenue net of sales taxes in our consolidated statements of operations. We sell our products primarily through a direct sales force. In certain international markets, we sell our products through independent distributors. We consider revenue to be realized or realizable and earned when all of the following criteria are met: persuasive evidence of a sales arrangement exists; delivery has occurred or services have been rendered; the price is fixed or determinable; and collectibility is reasonably assured. Revenue is recognized upon passage of title and risk of loss to customers, unless a consignment arrangement exists or we are required to provide additional services, and provided we can form an estimate for sales returns. We recognize revenue from consignment arrangements based on product usage, or implant, which indicates that the sale is complete. Many of our Cardiac Rhythm Management (CRM) product offerings combine the sale of a device with our LATITUDE® Patient Management System, which represents a future service obligation. For revenue arrangements with multiple deliverables, where the sale of a device is combined with a future service obligation, we defer revenue on the undelivered element and recognize this revenue over the related service period. We do not have vendor specific objective evidence of selling price available related to our future service obligations; therefore, we determine our estimates of selling price using third party evidence when available; otherwise, we use our best estimate of selling price. We allocate arrangement consideration using the relative selling price method. | |||||||||||||
We generally allow our customers to return defective, damaged and, in certain cases, expired products for credit. We base our estimate for sales returns upon historical trends and record the amount as a reduction to revenue when we sell the initial product. In addition, we may allow customers to return previously purchased products for next-generation product offerings. For these transactions, we defer recognition of revenue on the sale of the earlier generation product based upon an estimate of the amount of product to be returned when the next-generation products are shipped to the customer. | |||||||||||||
We also offer sales rebates and discounts to certain customers. We treat sales rebates and discounts as a reduction of revenue and classify the corresponding liability as current. We estimate rebates for products where there is sufficient historical information available to predict the volume of expected future rebates. If we are unable to estimate the expected rebates reasonably, we record a liability for the maximum rebate percentage offered. We have entered certain agreements with group purchasing organizations to sell our products to participating hospitals at negotiated prices. We recognize revenue from these agreements following the same revenue recognition criteria discussed above. | |||||||||||||
Product Warranty Disclosure [Text Block] | ' | ||||||||||||
Warranty Obligations | |||||||||||||
We offer warranties on certain of our product offerings. The majority of our warranty liability relates to implantable devices offered by our CRM business, which include defibrillator and pacemaker systems. Our CRM products come with a standard limited warranty covering the replacement of these devices. We offer a full warranty for a portion of the period post-implant, and a partial warranty for a period of time thereafter. We estimate the costs that we may incur under our warranty programs based on the number of units sold, historical and anticipated rates of warranty claims and cost per claim, and record a liability equal to these estimated costs as cost of products sold at the time the product sale occurs. We assess the adequacy of our recorded warranty liabilities on a quarterly basis and adjust these amounts as necessary. | |||||||||||||
Changes in our product warranty accrual during 2013, 2012, and 2011 consisted of the following (in millions): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning balance | $ | 26 | $ | 30 | $ | 43 | |||||||
Provision | 12 | 8 | 9 | ||||||||||
Settlements/ reversals | (10 | ) | (12 | ) | (22 | ) | |||||||
Ending balance | $ | 28 | $ | 26 | $ | 30 | |||||||
Inventory, Policy [Policy Text Block] | ' | ||||||||||||
Inventories | |||||||||||||
We state inventories at the lower of first-in, first-out cost or market. We base our provisions for excess, expired and obsolete inventory primarily on our estimates of forecasted net sales. A significant change in the timing or level of demand for our products as compared to forecasted amounts may result in recording additional provisions for excess, expired and obsolete inventory in the future. Further, the industry in which we participate is characterized by rapid product development and frequent new product introductions. Uncertain timing of next-generation product approvals, variability in product launch strategies, product recalls and variation in product utilization all affect our estimates related to excess, expired and obsolete inventory. Approximately 40 percent of our finished goods inventory as of December 31, 2013 and 2012 was at customer locations pursuant to consignment arrangements or held by sales representatives. | |||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||||||
Property, Plant and Equipment | |||||||||||||
We state property, plant, equipment, and leasehold improvements at historical cost. We charge expenditures for maintenance and repairs to expense and capitalize additions and improvements that extend the life of the underlying asset. We provide for depreciation using the straight-line method at rates that approximate the estimated useful lives of the assets. We depreciate buildings and improvements over a 20 to 40 year life; equipment, furniture and fixtures over a three to ten year life; and leasehold improvements over the shorter of the useful life of the improvement or the term of the related lease. Depreciation expense was $279 million in 2013, $288 million in 2012, and $296 million in 2011. | |||||||||||||
Business Combinations Policy [Policy Text Block] | ' | ||||||||||||
Valuation of Business Combinations | |||||||||||||
We allocate the amounts we pay for each acquisition to the assets we acquire and liabilities we assume based on their fair values at the dates of acquisition, including identifiable intangible assets and in-process research and development which either arise from a contractual or legal right or are separable from goodwill. We base the fair value of identifiable intangible assets acquired in a business combination, including in-process research and development, on detailed valuations that use information and assumptions provided by management, which consider management’s best estimates of inputs and assumptions that a market participant would use. We allocate any excess purchase price over the fair value of the net tangible and identifiable intangible assets acquired to goodwill. Transaction costs associated with these acquisitions are expensed as incurred through selling, general and administrative costs. | |||||||||||||
In those circumstances where an acquisition involves a contingent consideration arrangement, we recognize a liability equal to the fair value of the contingent payments we expect to make as of the acquisition date. We re-measure this liability each reporting period and record changes in the fair value through a separate line item within our consolidated statements of operations. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing and amount of revenue estimates or in the timing or likelihood of achieving regulatory, revenue or commercialization-based milestones. | |||||||||||||
In Process Research and Development, Policy [Policy Text Block] | ' | ||||||||||||
Indefinite-lived Intangibles, including In-Process Research and Development | |||||||||||||
Our indefinite-lived intangible assets that are not subject to amortization primarily include acquired balloon and other technology, which is foundational to our continuing operations within the Cardiovascular market and other markets within interventional medicine, and in-process research and development intangible assets acquired in a business combination. Our in-process research and development represents intangible assets acquired in a business combination that are used in research and development activities but have not yet reached technological feasibility, regardless of whether they have alternative future use. The primary basis for determining the technological feasibility or completion of these projects is obtaining regulatory approval to market the underlying products in an applicable geographic region. We classify in-process research and development acquired in a business combination as an indefinite-lived intangible asset until the completion or abandonment of the associated research and development efforts. Upon completion of the associated research and development efforts, we will determine the useful life of the technology and begin amortizing the assets to reflect their use over their remaining lives. Upon permanent abandonment, we would write-off the remaining carrying amount of the associated in-process research and development intangible asset. We test our indefinite-lived intangible assets at least annually for impairment and reassess their classification as indefinite-lived assets. We assess qualitative factors to determine whether the existence of events and circumstances indicate that it is more likely than not that our indefinite-lived intangible assets are impaired. If we conclude that it is more likely than not that the asset is impaired, we then determine the fair value of the intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying value in accordance with ASC Topic 350, Intangibles-Goodwill and Other. If the carrying value exceeds the fair value of the indefinite-lived intangible asset, we write the carrying value down to the fair value. | |||||||||||||
We use the income approach to determine the fair values of our in-process research and development. This approach calculates fair value by estimating the after-tax cash flows attributable to an in-process project over its useful life and then discounting these after-tax cash flows back to a present value. We base our revenue assumptions on estimates of relevant market sizes, expected market growth rates, expected trends in technology and expected levels of market share. In arriving at the value of the in-process projects, we consider, among other factors: the in-process projects’ stage of completion; the complexity of the work completed as of the acquisition date; the costs already incurred; the projected costs to complete; the contribution of other acquired assets; the expected regulatory path and introduction dates by region; and the estimated useful life of the technology. We apply a market-participant risk-adjusted discount rate to arrive at a present value as of the date of acquisition. | |||||||||||||
We test our in-process research and development intangible assets acquired in a business combination for impairment at least annually during the third quarter, and more frequently if events or changes in circumstances indicate that the assets may be impaired. | |||||||||||||
For asset purchases outside of business combinations, we expense any purchased research and development assets as of the acquisition date. | |||||||||||||
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | ' | ||||||||||||
Amortization and Impairment of Intangible Assets | |||||||||||||
We record intangible assets at historical cost and amortize them over their estimated useful lives. We use a straight-line method of amortization, unless a method that better reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up can be reliably determined. The approximate useful lives for amortization of our intangible assets are as follows: patents and licenses, two to 20 years; definite-lived technology-related, five to 25 years; customer relationships, five to 25 years; other intangible assets, various. | |||||||||||||
We review intangible assets subject to amortization quarterly to determine if any adverse conditions exist or a change in circumstances has occurred that would indicate impairment or a change in the remaining useful life. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in legal factors or business climate that could affect the value of an asset, a product recall, or an adverse action or assessment by a regulator. If an impairment indicator exists, we test the intangible asset for recoverability. For purposes of the recoverability test, we group our amortizable intangible assets with other assets and liabilities at the lowest level of identifiable cash flows if the intangible asset does not generate cash flows independent of other assets and liabilities. If the carrying value of the intangible asset (asset group) exceeds the undiscounted cash flows expected to result from the use and eventual disposition of the intangible asset (asset group), we will write the carrying value down to the fair value in the period identified. | |||||||||||||
We generally calculate fair value of our intangible assets as the present value of estimated future cash flows we expect to generate from the asset using a risk-adjusted discount rate. In determining our estimated future cash flows associated with our intangible assets, we use estimates and assumptions about future revenue contributions, cost structures and remaining useful lives of the asset (asset group). See Note D - Goodwill and Other Intangible Assets for more information related to impairments of intangible assets during 2013, 2012, and 2011. | |||||||||||||
For patents developed internally, we capitalize costs incurred to obtain patents, including attorney fees, registration fees, consulting fees, and other expenditures directly related to securing the patent. | |||||||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' | ||||||||||||
Goodwill Valuation | |||||||||||||
Effective as of January 1, 2013, we reorganized our business from geographic regions to fully operationalized global business units. Our reorganization changed our reporting structure and changed the composition of our reporting units for goodwill impairment testing purposes. Following the reorganization, based on information regularly reviewed by our chief operating decision maker, we have three new global reportable segments consisting of: Cardiovascular, Rhythm Management, and MedSurg. We determined our new global reporting units by identifying our operating segments and assessing whether any components of these segments constituted a business for which discrete financial information is available and whether segment management regularly reviews the operating results of any components. Through this process, we identified the following new global reporting units as of January 1, 2013: Interventional Cardiology, Peripheral Interventions, Cardiac Rhythm Management, Electrophysiology, Endoscopy, Urology and Women's Health, and Neuromodulation. The discussion below for 2013 relates to our global business reporting units and for 2012 and prior periods relates to our former regional reporting units. | |||||||||||||
We allocate any excess purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination to goodwill. We test our goodwill balances during the second quarter of each year for impairment, or more frequently if indicators are present or changes in circumstances suggest that impairment may exist. In performing the assessment, we utilize the two-step approach prescribed under ASC Topic 350, Intangibles-Goodwill and Other (Topic 350). The first step requires a comparison of the carrying value of the reporting units, as defined, to the fair value of these units. We assess goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a component. We determine our reporting units by first identifying our operating segments, and then assess whether any components of these segments constitute a business for which discrete financial information is available and where segment management regularly reviews the operating results of that component. We aggregate components within an operating segment that have similar economic characteristics. For our 2013 annual impairment assessment we identified seven reporting units, including Interventional Cardiology, Peripheral Interventions, Cardiac Rhythm Management, Electrophysiology, Endoscopy, Urology and Women's Health and Neuromodulation. For our 2012 and 2011 impairment assessments, we identified six reporting units within the U.S., including our CRM, Neuromodulation, Endoscopy, Urology and Women's Health, Electrophysiology, and Cardiovascular (consisting of Interventional Cardiology and Peripheral Interventions) franchises, which in aggregate make up the U.S. reportable segment. In addition, we identified four international reporting units, including EMEA, Japan, Asia Pacific and the Americas. | |||||||||||||
When allocating goodwill from business combinations to our reporting units, we assign goodwill to the reporting units that we expect to benefit from the respective business combination at the time of acquisition. In addition, for purposes of performing our goodwill impairment tests, assets and liabilities, including corporate assets, which relate to a reporting unit’s operations, and would be considered in determining its fair value, are allocated to the individual reporting units. We allocate assets and liabilities not directly related to a specific reporting unit, but from which the reporting unit benefits, based primarily on the respective revenue contribution of each reporting unit. | |||||||||||||
During 2013, 2012, and 2011, we used only the income approach, specifically the DCF method, to derive the fair value of each of our reporting units in preparing our goodwill impairment assessments. This approach calculates fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting these after-tax cash flows to a present value using a risk-adjusted discount rate. We selected this method as being the most meaningful in preparing our goodwill assessments because we believe the income approach most appropriately measures our income producing assets. We have considered using the market approach and cost approach but concluded they are not appropriate in valuing our reporting units given the lack of relevant market comparisons available for application of the market approach and the inability to replicate the value of the specific technology-based assets within our reporting units for application of the cost approach. Therefore, we believe that the income approach represents the most appropriate valuation technique for which sufficient data are available to determine the fair value of our reporting units. | |||||||||||||
In applying the income approach to our accounting for goodwill, we make assumptions about the amount and timing of future expected cash flows, terminal value growth rates and appropriate discount rates. The amount and timing of future cash flows within our DCF analysis is based on our most recent operational budgets, long range strategic plans and other estimates. The terminal value growth rate is used to calculate the value of cash flows beyond the last projected period in our DCF analysis and reflects our best estimates for stable, perpetual growth of our reporting units. We use estimates of market-participant risk-adjusted WACC as a basis for determining the discount rates to apply to our reporting units’ future expected cash flows. | |||||||||||||
If the carrying value of a reporting unit exceeds its fair value, we then perform the second step of the goodwill impairment test to measure the amount of impairment loss, if any. If the carrying value of a reporting unit is zero or negative, we evaluate whether it is more likely than not that a goodwill impairment exists. If we determine adverse qualitative factors exist that would indicate it is more likely than not an impairment exists, we then perform the second step of the goodwill test. The second step of the goodwill impairment test compares the estimated fair value of a reporting unit’s goodwill to its carrying value. If we were unable to complete the second step of the test prior to the issuance of our financial statements and an impairment loss was probable and could be reasonably estimated, we would recognize our best estimate of the loss in our current period financial statements and disclose that the amount is an estimate. We would then recognize any adjustment to that estimate in subsequent reporting periods, once we have finalized the second step of the impairment test. See Note D - Goodwill and Other Intangible Assets for discussion of our goodwill impairment charges. | |||||||||||||
Equity and Cost Method Investments, Policy [Policy Text Block] | ' | ||||||||||||
Investments in Publicly Traded and Privately Held Entities | |||||||||||||
We account for our publicly traded investments as available-for-sale securities based on the quoted market price at the end of the reporting period. We compute realized gains and losses on sales of available-for-sale securities based on the average cost method, adjusted for any other-than-temporary declines in fair value. We account for our investments in privately held entities, for which fair value is not readily determinable, in accordance with ASC Topic 323, Investments – Equity Method and Joint Ventures. | |||||||||||||
We account for investments in entities over which we have the ability to exercise significant influence under the equity method if we hold 50 percent or less of the voting stock and the entity is not a VIE in which we are the primary beneficiary. We record these investments initially at cost, and adjust the carrying amount to reflect our share of the earnings or losses of the investee, including all adjustments similar to those made in preparing consolidated financial statements. The book value of investments that we accounted for under the equity method of accounting was $18 million as of December 31, 2013 and $16 million as of December 31, 2012. We account for investments in entities in which we have less than a 20 percent ownership interest under the cost method of accounting if we do not have the ability to exercise significant influence over the investee. The aggregate carrying amount of our cost method investments was $20 million as of December 31, 2013 and $13 million as of December 31, 2012. In addition, we had notes receivable from certain companies of $13 million as of December 31, 2013 and $5 million as of December 31, 2012. | |||||||||||||
Each reporting period, we evaluate our investments to determine if there are any events or circumstances that are likely to have a significant adverse effect on the fair value of the investment. Examples of such impairment indicators include, but are not limited to: a significant deterioration in earnings performance; recent financing rounds at reduced valuations; a significant adverse change in the regulatory, economic or technological environment of an investee; or a significant doubt about an investee’s ability to continue as a going concern. If we identify an impairment indicator, we will estimate the fair value of the investment and compare it to its carrying value. Our estimation of fair value considers all available financial information related to the investee, including valuations based on recent third-party equity investments in the investee. If the fair value of the investment is less than its carrying value, the investment is impaired and we make a determination as to whether the impairment is other-than-temporary. We deem an impairment to be other-than-temporary unless we have the ability and intent to hold an investment for a period sufficient for a market recovery up to the carrying value of the investment. Further, evidence must indicate that the carrying value of the investment is recoverable within a reasonable period. For other-than-temporary impairments, we recognize an impairment loss equal to the difference between an investment’s carrying value and its fair value. Impairment losses on our investments are included in other, net in our consolidated statements of operations. | |||||||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||||||
Income Taxes | |||||||||||||
We utilize the asset and liability method of accounting for income taxes. Under this method, we determine deferred tax assets and liabilities based on differences between the financial reporting and tax bases of our assets and liabilities. We measure deferred tax assets and liabilities using the enacted tax rates and laws that will be in effect when we expect the differences to reverse. We reduce our deferred tax assets by a valuation allowance if, based upon the weight of available evidence, it is more likely than not that we will not realize some portion or all of the deferred tax assets. We consider relevant evidence, both positive and negative, to determine the need for a valuation allowance. Information evaluated includes our financial position and results of operations for the current and preceding years, the availability of deferred tax liabilities and tax carrybacks, as well as an evaluation of currently available information about future years. | |||||||||||||
We do not provide income taxes on unremitted earnings of our foreign subsidiaries where we have indefinitely reinvested such earnings in our foreign operations. It is not practicable to estimate the amount of income taxes payable on the earnings that are indefinitely reinvested in foreign operations. Unremitted earnings of our foreign subsidiaries that we have indefinitely reinvested in foreign operations are $11.902 billion as of December 31, 2013 and $11.041 billion as of December 31, 2012. | |||||||||||||
We provide for potential amounts due in various tax jurisdictions. In the ordinary course of conducting business in multiple countries and tax jurisdictions, there are many transactions and calculations where the ultimate tax outcome is uncertain. Judgment is required in determining our worldwide income tax provision. In our opinion, we have made adequate provisions for income taxes for all years subject to audit. Although we believe our estimates are reasonable, the final outcome of open tax matters may be different from that which we have reflected in our historical income tax provisions and accruals. Such differences could have a material impact on our income tax provision and operating results. See Note J - Income Taxes for further information and discussion of our income tax provision and balances. | |||||||||||||
Legal Costs, Policy [Policy Text Block] | ' | ||||||||||||
Legal and Product Liability Costs | |||||||||||||
We are involved in various legal and regulatory proceedings, including intellectual property, breach of contract, securities litigation and product liability suits. In some cases, the claimants seek damages, as well as other relief, which, if granted, could require significant expenditures or impact our ability to sell our products. We are also the subject of certain governmental investigations, which could result in substantial fines, penalties, and administrative remedies. We maintain an insurance policy providing limited coverage against securities claims, and we are substantially self-insured with respect to product liability claims and fully self-insured with respect to intellectual property infringement claims. We generally record losses for claims in excess of the limits of purchased insurance in earnings at the time and to the extent they are probable and estimable. We accrue anticipated costs of settlement, damages, losses for general product liability claims and, under certain conditions, costs of defense, based on historical experience or to the extent specific losses are probable and estimable. Otherwise, we expense these costs as incurred. If the estimate of a probable loss is a range and no amount within the range is more likely, we accrue the minimum amount of the range. We analyze litigation settlements to identify each element of the arrangement. We allocate arrangement consideration to patent licenses received based on estimates of fair value, and capitalize these amounts as assets if the license will provide an on-going future benefit. See Note K - Commitments and Contingencies for discussion of our individual material legal proceedings. | |||||||||||||
We record losses for claims in excess of the limits of purchased insurance in earnings at the time and to the extent they are probable and estimable. In accordance with ASC Topic 450, Contingencies, we accrue anticipated costs of settlement, damages, losses for general product liability claims and, under certain conditions, costs of defense, based on historical experience or to the extent specific losses are probable and estimable. Otherwise, we expense these costs as incurred. If the estimate of a probable loss is a range and no amount within the range is more likely, we accrue the minimum amount of the range. | |||||||||||||
Costs Associated with Exit or Disposal Activities or Restructurings, Policy | ' | ||||||||||||
Costs Associated with Exit Activities | |||||||||||||
We record employee termination costs in accordance with ASC Topic 712, Compensation - Nonretirement and Postemployment Benefits, if we pay the benefits as part of an on-going benefit arrangement, which includes benefits provided as part of our domestic severance policy or that we provide in accordance with international statutory requirements. We accrue employee termination costs associated with an on-going benefit arrangement if the obligation is attributable to prior services rendered, the rights to the benefits have vested, the payment is probable and we can reasonably estimate the liability. We account for employee termination benefits that represent a one-time benefit in accordance with ASC Topic 420, Exit or Disposal Cost Obligations. We record such costs into expense over the employee’s future service period, if any. Other costs associated with exit activities may include contract termination costs, including costs related to leased facilities to be abandoned or subleased, and impairments of long-lived assets, and are expensed in accordance with ASC Topic 420 and ASC Topic 360, Property, Plant, and Equipment. | |||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | ||||||||||||
Translation of Foreign Currency | |||||||||||||
We translate all assets and liabilities of foreign subsidiaries from local currency into U.S. dollars using the year-end exchange rate, and translate revenues and expenses at the average exchange rates in effect during the year. We show the net effect of these translation adjustments in our consolidated financial statements as a component of accumulated other comprehensive loss. For any significant foreign subsidiaries located in highly inflationary economies, we would re-measure their financial statements as if the functional currency were the U.S. dollar. We did not record any highly inflationary economy translation adjustments in 2013, 2012 or 2011. | |||||||||||||
Foreign currency transaction gains and losses are included in other, net in our consolidated statements of operations, net of losses and gains from any related derivative financial instruments. We recognized net foreign currency transaction losses of $11 million in 2013, $18 million in 2012, and $12 million in 2011. | |||||||||||||
Derivatives, Policy [Policy Text Block] | ' | ||||||||||||
Financial Instruments | |||||||||||||
We recognize all derivative financial instruments in our consolidated financial statements at fair value in accordance with ASC Topic 815, Derivatives and Hedging, and we present assets and liabilities associated with our derivative financial instruments on a gross basis in our financial statements. In accordance with Topic 815, for those derivative instruments that are designated and qualify as hedging instruments, the hedging instrument must be designated, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. The accounting for changes in the fair value (i.e. gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. Our derivative instruments do not subject our earnings or cash flows to material risk, as gains and losses on these derivatives generally offset losses and gains on the item being hedged. We do not enter into derivative transactions for speculative purposes and we do not have any non-derivative instruments that are designated as hedging instruments pursuant to Topic 815. Refer to Note E – Fair Value Measurements for more information on our derivative instruments. | |||||||||||||
We recognize all derivative financial instruments in our consolidated financial statements at fair value in accordance with ASC Topic 815, Derivatives and Hedging. In accordance with Topic 815, for those derivative instruments that are designated and qualify as hedging instruments, the hedging instrument must be designated, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. The accounting for changes in the fair value (i.e. gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. | |||||||||||||
Shipping and Handling Cost, Policy [Policy Text Block] | ' | ||||||||||||
Shipping and Handling Costs | |||||||||||||
We generally do not bill customers for shipping and handling of our products. Shipping and handling costs of $97 million in 2013, $105 million in 2012, and $100 million in 2011 are included in selling, general and administrative expenses in the accompanying consolidated statements of operations. | |||||||||||||
Research and Development Expense, Policy [Policy Text Block] | ' | ||||||||||||
Research and Development | |||||||||||||
We expense research and development costs, including new product development programs, regulatory compliance and clinical research as incurred. Refer to Indefinite-lived Intangibles, including In-Process Research and Development for our policy regarding in-process research and development acquired in connection with our business combinations and asset purchases. | |||||||||||||
Pension and Other Postretirement Plans, Policy [Policy Text Block] | ' | ||||||||||||
Employee Retirement Plans | |||||||||||||
In connection with our 2006 acquisition of Guidant Corporation, we sponsor the Guidant Retirement Plan, a frozen noncontributory defined benefit plan covering a select group of current and former employees. The funding policy for the plan is consistent with U.S. employee benefit and tax-funding regulations. Plan assets, which are maintained in a trust, consist primarily of fixed-income instruments. Further, we sponsor the Guidant Supplemental Retirement Plan, a frozen, nonqualified defined benefit plan for certain former officers and employees of Guidant. The Guidant Supplemental Retirement Plan was funded through a Rabbi Trust that contains segregated company assets used to pay the benefit obligations related to the plan. In addition, certain current and former employees of Guidant are eligible to receive a portion of their healthcare retirement benefits under a frozen defined benefit plan. | |||||||||||||
In addition, we maintain an Executive Retirement Plan, a defined benefit plan covering executive officers and division presidents. Participants may retire with unreduced benefits once retirement conditions have been satisfied. We also maintain retirement plans covering certain international employees. | |||||||||||||
We use a December 31 measurement date for these plans and record the underfunded portion as a liability, recognizing changes in the funded status through other comprehensive income (OCI). | |||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||||||
Net Income (Loss) per Common Share | |||||||||||||
We base net income (loss) per common share upon the weighted-average number of common shares and common stock equivalents outstanding during each year. Potential common stock equivalents are determined using the treasury stock method. We exclude stock options whose effect would be anti-dilutive from the calculation. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies (Policies) [Abstract] | ' |
Legal Costs, Policy [Policy Text Block] | ' |
Legal and Product Liability Costs | |
We are involved in various legal and regulatory proceedings, including intellectual property, breach of contract, securities litigation and product liability suits. In some cases, the claimants seek damages, as well as other relief, which, if granted, could require significant expenditures or impact our ability to sell our products. We are also the subject of certain governmental investigations, which could result in substantial fines, penalties, and administrative remedies. We maintain an insurance policy providing limited coverage against securities claims, and we are substantially self-insured with respect to product liability claims and fully self-insured with respect to intellectual property infringement claims. We generally record losses for claims in excess of the limits of purchased insurance in earnings at the time and to the extent they are probable and estimable. We accrue anticipated costs of settlement, damages, losses for general product liability claims and, under certain conditions, costs of defense, based on historical experience or to the extent specific losses are probable and estimable. Otherwise, we expense these costs as incurred. If the estimate of a probable loss is a range and no amount within the range is more likely, we accrue the minimum amount of the range. We analyze litigation settlements to identify each element of the arrangement. We allocate arrangement consideration to patent licenses received based on estimates of fair value, and capitalize these amounts as assets if the license will provide an on-going future benefit. See Note K - Commitments and Contingencies for discussion of our individual material legal proceedings. | |
We record losses for claims in excess of the limits of purchased insurance in earnings at the time and to the extent they are probable and estimable. In accordance with ASC Topic 450, Contingencies, we accrue anticipated costs of settlement, damages, losses for general product liability claims and, under certain conditions, costs of defense, based on historical experience or to the extent specific losses are probable and estimable. Otherwise, we expense these costs as incurred. If the estimate of a probable loss is a range and no amount within the range is more likely, we accrue the minimum amount of the range. | |
ASC Topic 820, Fair Value Measurements and Disclosures | ' |
We determine the fair value of our derivative instruments using the framework prescribed by ASC Topic 820, Fair Value Measurements and Disclosures, by considering the estimated amount we would receive or pay to transfer these instruments at the reporting date and by taking into account current interest rates, foreign currency exchange rates, the creditworthiness of the counterparty for assets, and our creditworthiness for liabilities. In certain instances, we may utilize financial models to measure fair value. Generally, we use inputs that include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; other observable inputs for the asset or liability; and inputs derived principally from, or corroborated by, observable market data by correlation or other means. | |
ASC Topic 815, Derivatives and Hedging | ' |
Financial Instruments | |
We recognize all derivative financial instruments in our consolidated financial statements at fair value in accordance with ASC Topic 815, Derivatives and Hedging, and we present assets and liabilities associated with our derivative financial instruments on a gross basis in our financial statements. In accordance with Topic 815, for those derivative instruments that are designated and qualify as hedging instruments, the hedging instrument must be designated, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. The accounting for changes in the fair value (i.e. gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. Our derivative instruments do not subject our earnings or cash flows to material risk, as gains and losses on these derivatives generally offset losses and gains on the item being hedged. We do not enter into derivative transactions for speculative purposes and we do not have any non-derivative instruments that are designated as hedging instruments pursuant to Topic 815. Refer to Note E – Fair Value Measurements for more information on our derivative instruments. | |
We recognize all derivative financial instruments in our consolidated financial statements at fair value in accordance with ASC Topic 815, Derivatives and Hedging. In accordance with Topic 815, for those derivative instruments that are designated and qualify as hedging instruments, the hedging instrument must be designated, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. The accounting for changes in the fair value (i.e. gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. |
New_Accounting_Pronouncements_
New Accounting Pronouncements New Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
New Accounting Pronouncements [Abstract] | ' |
ASC Update No. 2013-02, Comprehensive Income (Topic 220) [Policy Text Block] | ' |
ASC Update No. 2013-02 | |
In February 2013, the FASB issued ASC Update No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income. Update No. 2013-02 requires that entities provide information about amounts reclassified out of accumulated other comprehensive income by component. The amendment also requires entities to present significant amounts by the respective line items of net income, either on the face of the income statement or in the notes to the financial statements for amounts required to be reclassified out of accumulated other comprehensive income in their entirety in the same reporting period. For other amounts that are not required to be reclassified to net income in their entirety, a cross-reference is required to other disclosures that provide additional details about those amounts. We adopted Update No. 2013-02 beginning in our first quarter ended March 31, 2013. Update No. 2013-02 is related to presentation only and its adoption did not impact our results of operations or financial position. See our Consolidated Statements of Comprehensive Income (Loss) and Note M - Changes in Other Comprehensive Income to our 2013 consolidated financial statements for the required disclosures under Update No. 2013-02. | |
ASC Update No. 2013-11, Income Taxes (Topic 740) [Policy Text Block] | ' |
ASC Update No. 2013-11 | |
In July 2013, the FASB issued ASC Update No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Update No. 2013-11 requires that entities present an unrecognized tax benefit, or portion of an unrecognized tax benefit, as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with certain exceptions. We are required to adopt Update No. 2013-11 for our first quarter ending March 31, 2014. Update No. 2013-11 is related to presentation only and its adoption will not impact our results of operations or financial position. | |
ASC Update No. 2013-01, Balance Sheet (Topic 210) [Policy Text Block] | ' |
ASC Update No. 2013-01 | |
In January 2013, the FASB issued ASC Update No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. Update No. 2013-01 clarifies the FASB's intent about requiring enhanced disclosures about certain financial instruments and derivative instruments that are offset in the statement of financial position or that are subject to enforceable master netting arrangements or similar agreements. We adopted Update No. 2013-01 beginning in our first quarter ended March 31, 2013. See Note E - Fair Value Measurements to our 2013 consolidated financial statements for the required disclosures under Update No. 2013-01. |
Significant_Accounting_Policie2
Significant Accounting Policies Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Significant Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Product Warranty Liability [Table Text Block] | ' | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Beginning balance | $ | 26 | $ | 30 | $ | 43 | |||||||||||||||||||
Provision | 12 | 8 | 9 | ||||||||||||||||||||||
Settlements/ reversals | (10 | ) | (12 | ) | (22 | ) | |||||||||||||||||||
Ending balance | $ | 28 | $ | 26 | $ | 30 | |||||||||||||||||||
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | ' | ||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||
(in millions) | Projected | Fair value of Plan Assets | Underfunded | Projected | Fair value of Plan Assets | Underfunded | |||||||||||||||||||
Benefit | PBO Recognized | Benefit | PBO Recognized | ||||||||||||||||||||||
Obligation (PBO) | Obligation (PBO) | ||||||||||||||||||||||||
Executive Retirement Plan | $ | 10 | $ | — | $ | 10 | $ | 13 | $ | — | $ | 13 | |||||||||||||
Guidant Retirement Plan (frozen) | 120 | 114 | 6 | 131 | 87 | 44 | |||||||||||||||||||
Guidant Supplemental Retirement Plan (frozen) | 31 | — | 31 | 34 | — | 34 | |||||||||||||||||||
Guidant Healthcare Retirement Benefit Plan (frozen) | 3 | — | 3 | 5 | — | 5 | |||||||||||||||||||
International Retirement Plans | 84 | 52 | 32 | 85 | 43 | 42 | |||||||||||||||||||
$ | 248 | $ | 166 | $ | 82 | $ | 268 | $ | 130 | $ | 138 | ||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | ' | ||||||||||||||||||||||||
Expected Return | Long-Term | Rate of | |||||||||||||||||||||||
on Plan Assets | Healthcare | ||||||||||||||||||||||||
Discount | Cost | Compensation | |||||||||||||||||||||||
Rate | Trend Rate | Increase | |||||||||||||||||||||||
Executive Retirement Plan | 4.50% | 3.00% | |||||||||||||||||||||||
Guidant Retirement Plan (frozen) | 5.00% | 5.50% | |||||||||||||||||||||||
Guidant Supplemental Retirement Plan (frozen) | 4.75% | ||||||||||||||||||||||||
Guidant Healthcare Retirement Benefit Plan (frozen) | 1.00% - 2.00% | 5.00% | |||||||||||||||||||||||
International Retirement Plans | 0.75% - 3.70% | 2.75% - 4.10% | 3.00% | ||||||||||||||||||||||
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | ' | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
(in millions) | 2013 | 2012 | |||||||||||||||||||||||
Beginning fair value | $ | 130 | $ | 115 | |||||||||||||||||||||
Actual return on plan assets | 25 | 11 | |||||||||||||||||||||||
Employer contributions | 32 | 20 | |||||||||||||||||||||||
Benefits paid | (15 | ) | (13 | ) | |||||||||||||||||||||
Net transfers in (out) | — | — | |||||||||||||||||||||||
Foreign currency exchange | (6 | ) | (3 | ) | |||||||||||||||||||||
Ending fair value | $ | 166 | $ | 130 | |||||||||||||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Acquisition [Line Items] | ' | |||||||
Schedule of Purchase Price Allocation [Table Text Block] | ' | |||||||
The components of the aggregate purchase price as of the acquisition date for acquisitions consummated in 2011 are as follows (in millions): | ||||||||
Cash, net of cash acquired | $ | 370 | ||||||
Fair value of contingent consideration | 287 | |||||||
Prior investments | 55 | |||||||
$ | 712 | |||||||
The components of the aggregate preliminary purchase price for the acquisition consummated in 2013 are as follows (in millions): | ||||||||
Cash, net of cash acquired | $ | 274 | ||||||
Fair value of contingent consideration | — | |||||||
Fair value of prior interests | — | |||||||
Fair value of debt assumed | — | |||||||
$ | 274 | |||||||
The following summarizes the aggregate preliminary purchase price allocation for the 2013 acquisition as of December 31, 2013 (in millions): | ||||||||
Goodwill | $ | 140 | ||||||
Amortizable intangible assets | 112 | |||||||
Indefinite-lived intangible assets | — | |||||||
Other net assets | 19 | |||||||
Deferred income taxes | 3 | |||||||
$ | 274 | |||||||
The following summarizes the aggregate purchase price allocation for the 2011 acquisitions (in millions): | ||||||||
Goodwill (non-deductible for tax purposes) | $ | 266 | ||||||
Amortizable intangible assets | 97 | |||||||
Indefinite-lived intangible assets | 470 | |||||||
Deferred income taxes | (121 | ) | ||||||
$ | 712 | |||||||
The following summarizes the aggregate purchase price allocation for the 2012 acquisitions as of December 31, 2012 (in millions): | ||||||||
Goodwill (non-deductible for tax purposes) | $ | 566 | ||||||
Amortizable intangible assets | 189 | |||||||
Indefinite-lived intangible assets | 132 | |||||||
Other net assets | 15 | |||||||
Deferred income taxes | 20 | |||||||
$ | 922 | |||||||
The components of the aggregate purchase price for acquisitions consummated in 2012 are as follows (in millions): | ||||||||
Cash, net of cash acquired | $ | 367 | ||||||
Fair value of contingent consideration | 467 | |||||||
Fair value of prior interests | 79 | |||||||
Fair value of debt assumed | 9 | |||||||
$ | 922 | |||||||
Description of unobservable inputs used in Level 3 fair value measurements [Table Text Block] | ' | |||||||
The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs: | ||||||||
Contingent Consideration Liability | Fair Value as of December 31, 2013 | Valuation Technique | Unobservable Input | Range | ||||
R&D, Regulatory and Commercialization-based Milestones | $84 million | Probability Weighted Discounted Cash Flow | Discount Rate | 0.8% - 1.0% | ||||
Probability of Payment | 85% | |||||||
Projected Year of Payment | 2014 | |||||||
Revenue-based Payments | $126 million | Discounted Cash Flow | Discount Rate | 12% - 15% | ||||
Probability of Payment | 0% - 100% | |||||||
Projected Year of Payment | 2014 - 2017 | |||||||
$291 million | Monte Carlo | Revenue Volatility | 13% - 26% | |||||
Risk Free Rate | LIBOR Term Structure | |||||||
Projected Year of Payment | 2014-2018 | |||||||
The nonrecurring Level 3 fair value measurements of the impairment analysis performed in the second quarter of 2013 included the following significant unobservable inputs: | ||||||||
Intangible Asset | Fair Value as of Second Quarter 2013 | Valuation Technique | Unobservable Input | Rate | ||||
In-Process R&D | $178 million | Income Approach - Excess Earnings Method | Discount Rate | 16.50% | ||||
The nonrecurring Level 3 fair value measurements of the impairment charges taken in the second quarter of 2012 included the following significant unobservable inputs: | ||||||||
Intangible Asset | Fair Value as of Second Quarter 2012 | Valuation Technique | Unobservable Input | Range | ||||
In-Process R&D | $184 million | Income Approach - Excess Earnings Method | Discount Rate | 20% | ||||
The nonrecurring Level 3 fair value measurements of the impairment charges taken in the third quarter of 2012 included the following significant unobservable inputs: | ||||||||
Intangible Asset | Fair Value as of Third Quarter 2012 | Valuation Technique | Unobservable Input | Range | ||||
In-Process R&D | $26 million | Income Approach - Excess Earnings Method | Discount Rate | 20%-25% | ||||
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | ' | |||||||
Changes in our contingent consideration liability were as follows (in millions): | ||||||||
Balance as of December 31, 2011 | $ | (358 | ) | |||||
Amounts recorded related to new acquisitions | (467 | ) | ||||||
Other amounts recorded related to prior acquisitions | 2 | |||||||
Net fair value adjustments | 6 | |||||||
Payments made | 154 | |||||||
Balance as of December 31, 2012 | $ | (663 | ) | |||||
Amounts recorded related to new acquisitions | — | |||||||
Other amounts recorded related to prior acquisitions | 1 | |||||||
Net fair value adjustments | (4 | ) | ||||||
Payments made | 165 | |||||||
Balance as of December 31, 2013 | $ | (501 | ) | |||||
Schedule of Finite-Lived and Indefinite Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] [Table Text Block] | ' | |||||||
We allocated the aggregate purchase price to specific intangible asset categories as follows: | ||||||||
Amount | Weighted | Range of Risk- | ||||||
Assigned | Average | Adjusted Discount | ||||||
(in millions) | Amortization | Rates used in | ||||||
Period | Purchase Price | |||||||
(in years) | Allocation | |||||||
Amortizable intangible assets | ||||||||
Technology-related | $ | 97 | 7 | 23% - 25% | ||||
Indefinite-lived intangible assets | ||||||||
Purchased research and development | 470 | 23% - 30% | ||||||
$ | 567 | |||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets, Description | ' | |||||||
We allocated a portion of the preliminary purchase price to specific intangible asset categories as of the respective acquisition dates as follows: | ||||||||
Amount | Weighted | Range of Risk- | ||||||
Assigned | Average | Adjusted Discount | ||||||
(in millions) | Amortization | Rates used in | ||||||
Period | Purchase Price | |||||||
(in years) | Allocation | |||||||
Amortizable intangible assets: | ||||||||
Technology-related | $ | 82 | 10 | 11.50% | ||||
Customer relationships | 30 | 7 | 11.50% | |||||
$ | 112 | |||||||
We allocated a portion of the final purchase price to specific intangible asset categories as of the respective acquisition dates as follows: | ||||||||
Amount | Weighted | Range of Risk- | ||||||
Assigned | Average | Adjusted Discount | ||||||
(in millions) | Amortization | Rates used in | ||||||
Period | Purchase Price | |||||||
(in years) | Allocation | |||||||
Amortizable intangible assets: | ||||||||
Technology-related | $ | 187 | 8 | 14% to 28% | ||||
Customer relationships | 2 | 5 | 14% | |||||
Indefinite-lived intangible assets: | ||||||||
In-process research and development | 132 | 14% to 28% | ||||||
$ | 321 | |||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Goodwill and Other Intangible Assets [Abstract] | ' | ||||||||||||||||
Description of unobservable inputs used in Level 3 fair value measurements [Table Text Block] | ' | ||||||||||||||||
The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs: | |||||||||||||||||
Contingent Consideration Liability | Fair Value as of December 31, 2013 | Valuation Technique | Unobservable Input | Range | |||||||||||||
R&D, Regulatory and Commercialization-based Milestones | $84 million | Probability Weighted Discounted Cash Flow | Discount Rate | 0.8% - 1.0% | |||||||||||||
Probability of Payment | 85% | ||||||||||||||||
Projected Year of Payment | 2014 | ||||||||||||||||
Revenue-based Payments | $126 million | Discounted Cash Flow | Discount Rate | 12% - 15% | |||||||||||||
Probability of Payment | 0% - 100% | ||||||||||||||||
Projected Year of Payment | 2014 - 2017 | ||||||||||||||||
$291 million | Monte Carlo | Revenue Volatility | 13% - 26% | ||||||||||||||
Risk Free Rate | LIBOR Term Structure | ||||||||||||||||
Projected Year of Payment | 2014-2018 | ||||||||||||||||
The nonrecurring Level 3 fair value measurements of the impairment analysis performed in the second quarter of 2013 included the following significant unobservable inputs: | |||||||||||||||||
Intangible Asset | Fair Value as of Second Quarter 2013 | Valuation Technique | Unobservable Input | Rate | |||||||||||||
In-Process R&D | $178 million | Income Approach - Excess Earnings Method | Discount Rate | 16.50% | |||||||||||||
The nonrecurring Level 3 fair value measurements of the impairment charges taken in the second quarter of 2012 included the following significant unobservable inputs: | |||||||||||||||||
Intangible Asset | Fair Value as of Second Quarter 2012 | Valuation Technique | Unobservable Input | Range | |||||||||||||
In-Process R&D | $184 million | Income Approach - Excess Earnings Method | Discount Rate | 20% | |||||||||||||
The nonrecurring Level 3 fair value measurements of the impairment charges taken in the third quarter of 2012 included the following significant unobservable inputs: | |||||||||||||||||
Intangible Asset | Fair Value as of Third Quarter 2012 | Valuation Technique | Unobservable Input | Range | |||||||||||||
In-Process R&D | $26 million | Income Approach - Excess Earnings Method | Discount Rate | 20%-25% | |||||||||||||
Schedule of Goodwill [Table Text Block] | ' | ||||||||||||||||
The following represents our goodwill balance by new global reportable segment. We restated the prior period information to conform to the current presentation: | |||||||||||||||||
(in millions) | Cardiovascular | Rhythm Management | MedSurg | Total | |||||||||||||
Balance as of December 31, 2011 | $ | 4,542 | $ | 1,661 | $ | 3,558 | $ | 9,761 | |||||||||
Purchase price adjustments | — | (1 | ) | — | (1 | ) | |||||||||||
Goodwill acquired | 186 | 327 | 50 | 563 | |||||||||||||
Goodwill written off | (1,479 | ) | (1,410 | ) | (1,461 | ) | (4,350 | ) | |||||||||
Balance as of December 31, 2012 | $ | 3,249 | $ | 577 | $ | 2,147 | $ | 5,973 | |||||||||
Purchase price adjustments | 3 | — | — | 3 | |||||||||||||
Goodwill acquired | — | 140 | — | 140 | |||||||||||||
Goodwill written off | — | (423 | ) | — | (423 | ) | |||||||||||
Balance as of December 31, 2013 | $ | 3,252 | $ | 294 | $ | 2,147 | $ | 5,693 | |||||||||
Schedule of Impaired Intangible Assets [Table Text Block] | ' | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||||||
Technology-related | $ | — | $ | — | $ | 9 | |||||||||||
Purchased research and development | 53 | 142 | 12 | ||||||||||||||
$ | 53 | 142 | $ | 21 | |||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | ' | ||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||||
Amortization/ | Amortization/ | ||||||||||||||||
(in millions) | Amount | Write-offs | Amount | Write-offs | |||||||||||||
Amortizable intangible assets | |||||||||||||||||
Technology-related | $ | 8,272 | $ | (3,342 | ) | $ | 8,020 | $ | (3,005 | ) | |||||||
Patents | 513 | (326 | ) | 559 | (352 | ) | |||||||||||
Other intangible assets | 845 | (479 | ) | 810 | (428 | ) | |||||||||||
$ | 9,630 | $ | (4,147 | ) | $ | 9,389 | $ | (3,785 | ) | ||||||||
Unamortizable intangible assets | |||||||||||||||||
Goodwill | $ | 15,593 | $ | (9,900 | ) | $ | 15,450 | $ | (9,477 | ) | |||||||
Technology-related | 197 | 242 | |||||||||||||||
$ | 15,790 | $ | (9,900 | ) | $ | 15,692 | $ | (9,477 | ) | ||||||||
Schedule of Expected Amortization Expense [Table Text Block] | ' | ||||||||||||||||
Estimated Amortization Expense | |||||||||||||||||
Fiscal Year | (in millions) | ||||||||||||||||
2014 | $ | 433 | |||||||||||||||
2015 | 441 | ||||||||||||||||
2016 | 441 | ||||||||||||||||
2017 | 440 | ||||||||||||||||
2018 | 441 | ||||||||||||||||
Asset Impairment Charges [Text Block] | ' | ||||||||||||||||
The following is a rollforward of accumulated goodwill write-offs by global reportable segment: | |||||||||||||||||
(in millions) | Cardiovascular | Rhythm Management | MedSurg | Total | |||||||||||||
Accumulated write-offs as of December 31, 2011 | $ | — | $ | (5,127 | ) | $ | — | (5,127 | ) | ||||||||
Goodwill written off | (1,479 | ) | (1,410 | ) | (1,461 | ) | (4,350 | ) | |||||||||
Accumulated write-offs as of December 31, 2012 | $ | (1,479 | ) | $ | (6,537 | ) | (1,461 | ) | $ | (9,477 | ) | ||||||
Goodwill written off | — | (423 | ) | — | (423 | ) | |||||||||||
Accumulated write-offs as of December 31, 2013 | $ | (1,479 | ) | $ | (6,960 | ) | $ | (1,461 | ) | $ | (9,900 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Measurements (Tables) [Abstract] | ' | |||||||||||||||||||||||||||||||
Gains (losses) recognized in earnings for derivatives designed as hedging instruments | ' | |||||||||||||||||||||||||||||||
The following presents the effect of our derivative instruments designated as cash flow hedges under Topic 815 on our accompanying consolidated statements of operations during 2013, 2012 and 2011 (in millions): | ||||||||||||||||||||||||||||||||
Amount of Pre-tax | Amount of Pre-tax | Location in Statement of | ||||||||||||||||||||||||||||||
Gain (Loss) | Gain (Loss) | Operations | ||||||||||||||||||||||||||||||
Recognized in OCI | Reclassified from | |||||||||||||||||||||||||||||||
(Effective Portion) | AOCI into Earnings | |||||||||||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Interest rate hedge contracts | $ | — | $ | 1 | Interest expense | |||||||||||||||||||||||||||
Currency hedge contracts | 207 | 36 | Cost of products sold | |||||||||||||||||||||||||||||
$ | 207 | $ | 37 | |||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Interest rate hedge contracts | $ | — | $ | 2 | Interest expense | |||||||||||||||||||||||||||
Currency hedge contracts | 95 | (39 | ) | Cost of products sold | ||||||||||||||||||||||||||||
$ | 95 | $ | (37 | ) | ||||||||||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||
Interest rate hedge contracts | $ | — | $ | 1 | Interest expense | |||||||||||||||||||||||||||
Currency hedge contracts | (66 | ) | (95 | ) | Cost of products sold | |||||||||||||||||||||||||||
$ | (66 | ) | $ | (94 | ) | |||||||||||||||||||||||||||
Classification of derivative assets and liabilities within level 2 | ' | |||||||||||||||||||||||||||||||
The following are the balances of our derivative assets and liabilities as of December 31, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||
(in millions) | Location in Balance Sheet (1) | 2013 | 2012 | |||||||||||||||||||||||||||||
Derivative Assets: | ||||||||||||||||||||||||||||||||
Designated Hedging Instruments | ||||||||||||||||||||||||||||||||
Currency hedge contracts | Prepaid and other current assets | $ | 117 | $ | 25 | |||||||||||||||||||||||||||
Currency hedge contracts | Other long-term assets | 120 | 63 | |||||||||||||||||||||||||||||
Interest rate contracts | Prepaid and other current assets | 1 | — | |||||||||||||||||||||||||||||
238 | 88 | |||||||||||||||||||||||||||||||
Non-Designated Hedging Instruments | ||||||||||||||||||||||||||||||||
Currency hedge contracts | Prepaid and other current assets | 27 | 33 | |||||||||||||||||||||||||||||
Total Derivative Assets | $ | 265 | $ | 121 | ||||||||||||||||||||||||||||
Derivative Liabilities: | ||||||||||||||||||||||||||||||||
Designated Hedging Instruments | ||||||||||||||||||||||||||||||||
Currency hedge contracts | Other current liabilities | $ | 13 | $ | 20 | |||||||||||||||||||||||||||
Currency hedge contracts | Other long-term liabilities | 19 | 10 | |||||||||||||||||||||||||||||
Interest rate contracts | Other long-term liabilities | 8 | — | |||||||||||||||||||||||||||||
40 | 30 | |||||||||||||||||||||||||||||||
Non-Designated Hedging Instruments | ||||||||||||||||||||||||||||||||
Currency hedge contracts | Other current liabilities | 23 | 27 | |||||||||||||||||||||||||||||
Total Derivative Liabilities | $ | 63 | $ | 57 | ||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis consist of the following as of December 31, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Money market and government funds | $ | 38 | $ | — | $ | — | $ | 38 | $ | 39 | $ | — | $ | — | $ | 39 | ||||||||||||||||
Currency hedge contracts | — | 264 | — | 264 | — | 121 | — | 121 | ||||||||||||||||||||||||
Interest rate contracts | — | 1 | — | 1 | — | — | — | — | ||||||||||||||||||||||||
$ | 38 | $ | 265 | $ | — | $ | 303 | $ | 39 | $ | 121 | $ | — | $ | 160 | |||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Currency hedge contracts | $ | — | $ | 55 | $ | — | $ | 55 | $ | — | $ | 57 | $ | — | $ | 57 | ||||||||||||||||
Accrued contingent consideration | — | — | 501 | 501 | — | — | 663 | 663 | ||||||||||||||||||||||||
Interest rate contracts | — | 8 | — | 8 | — | — | — | — | ||||||||||||||||||||||||
$ | — | $ | 63 | $ | 501 | $ | 564 | — | $ | 57 | $ | 663 | $ | 720 | ||||||||||||||||||
Changes in the fair value of recurring fair value measurements using Level 3 inputs | ' | |||||||||||||||||||||||||||||||
Our recurring fair value measurements using significant unobservable inputs (Level 3) relate solely to our contingent consideration liability | ||||||||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | |||||||||||||||||||||||||||||||
NetGainsand LossesonDerivatives not designated as hedging instruments [Table Text Block] | ' | |||||||||||||||||||||||||||||||
in millions | Year Ended | Location in Statement of | ||||||||||||||||||||||||||||||
December 31, | Operations | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Gain (loss) on currency hedge contracts | $ | 102 | $ | 23 | $ | 12 | Other, net | |||||||||||||||||||||||||
Gain (loss) on foreign currency transaction exposures | (113 | ) | (41 | ) | (24 | ) | Other, net | |||||||||||||||||||||||||
Net foreign currency gain (loss) | $ | (11 | ) | $ | (18 | ) | $ | (12 | ) |
Borrowings_and_Credit_Arrangem1
Borrowings and Credit Arrangements (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Borrowings and Credit Arrangements (Tables) [Abstract] | ' | |||||||||||||||||||||||||||
Terms of senior notes [Table Text Block] | ' | |||||||||||||||||||||||||||
Our senior notes consist of the following as of December 31, 2013: | ||||||||||||||||||||||||||||
Amount | Issuance | Maturity Date | Semi-annual | |||||||||||||||||||||||||
(in millions) | Date | Coupon Rate | ||||||||||||||||||||||||||
November 2015 Notes | $ | 400 | Nov-05 | Nov-15 | 5.50% | |||||||||||||||||||||||
June 2016 Notes | 600 | Jun-06 | Jun-16 | 6.40% | ||||||||||||||||||||||||
January 2017 Notes | 250 | Nov-04 | Jan-17 | 5.13% | ||||||||||||||||||||||||
October 2018 Notes | 600 | Aug-13 | Oct-18 | 2.65% | ||||||||||||||||||||||||
January 2020 Notes | 850 | Dec-09 | Jan-20 | 6.00% | ||||||||||||||||||||||||
October 2023 Notes | 450 | Aug-13 | Oct-23 | 4.13% | ||||||||||||||||||||||||
November 2035 Notes | 350 | Nov-05 | Nov-35 | 6.25% | ||||||||||||||||||||||||
January 2040 Notes | 300 | Dec-09 | Jan-40 | 7.38% | ||||||||||||||||||||||||
$ | 3,800 | |||||||||||||||||||||||||||
Schedule of debt maturities | ' | |||||||||||||||||||||||||||
The debt maturity schedule for the significant components of our debt obligations as of December 31, 2013 is as follows: | ||||||||||||||||||||||||||||
(in millions) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||
Senior notes | $ | — | $ | 400 | $ | 600 | $ | 250 | $ | 600 | $ | 1,950 | $ | 3,800 | ||||||||||||||
Term loan | — | — | 80 | 80 | 240 | — | 400 | |||||||||||||||||||||
$ | — | $ | 400 | $ | 680 | $ | 330 | $ | 840 | $ | 1,950 | $ | 4,200 | |||||||||||||||
Note: | The table above does not include unamortized discounts associated with our senior notes, or amounts related to interest rate contracts used to hedge the fair value of certain of our senior notes. | |||||||||||||||||||||||||||
Summary of term loan and revolving credit facility agreement compliance with debt covenants | ' | |||||||||||||||||||||||||||
Our revolving credit facility agreement in place as of December 31, 2013 requires that we maintain certain financial covenants, as follows: | ||||||||||||||||||||||||||||
Covenant | Actual as of December 31, 2013 | |||||||||||||||||||||||||||
Requirement | ||||||||||||||||||||||||||||
Maximum leverage ratio (1) | 3.5 times | 2.5 times | ||||||||||||||||||||||||||
Minimum interest coverage ratio (2) | 3.0 times | 5.2 times | ||||||||||||||||||||||||||
-1 | Ratio of total debt to consolidated EBITDA, as defined by the credit agreement, for the preceding four consecutive fiscal quarters. | |||||||||||||||||||||||||||
-2 | Ratio of consolidated EBITDA, as defined by the credit agreement, to interest expense for the preceding four consecutive fiscal quarters. |
Leases_Tables
Leases (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases [Abstract] | ' | |||
Operating Leases of Lessee Disclosure [Table Text Block] | ' | |||
Future minimum rental commitments as of December 31, 2013 under other noncancelable lease agreements are as follows (in millions): | ||||
2014 | $ | 64 | ||
2015 | 51 | |||
2016 | 43 | |||
2017 | 29 | |||
2018 | 25 | |||
Thereafter | 42 | |||
$ | 254 | |||
Restructuring_Related_Activiti1
Restructuring Related Activities (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Restructuring and Related Cost [Line Items] | ' | |||||||||||||||||||||||
Impact of restructuring costs on the accompanying financial statements | ' | |||||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||
(in millions) | Termination | Accelerated | Transfer | Fixed Asset | Other | Total | ||||||||||||||||||
Benefits | Depreciation | Costs | Write-offs | |||||||||||||||||||||
Restructuring charges | $ | 55 | $ | — | $ | — | $ | — | $ | 34 | $ | 89 | ||||||||||||
Restructuring-related expenses: | ||||||||||||||||||||||||
Cost of products sold | — | 9 | 27 | — | — | 36 | ||||||||||||||||||
Selling, general and administrative expenses | — | — | — | — | 4 | 4 | ||||||||||||||||||
— | 9 | 27 | — | 4 | 40 | |||||||||||||||||||
$ | 55 | $ | 9 | $ | 27 | $ | — | $ | 38 | $ | 129 | |||||||||||||
(in millions) | Termination | Accelerated | Transfer | Fixed Asset | Other | Total | ||||||||||||||||||
Benefits | Depreciation | Costs | Write-offs | |||||||||||||||||||||
2011 Restructuring plan | $ | 21 | $ | — | $ | — | $ | — | $ | 14 | $ | 35 | ||||||||||||
2010 Restructuring plan | 24 | 1 | — | — | 24 | 49 | ||||||||||||||||||
Plant Network Optimization program | 10 | 8 | 27 | — | — | 45 | ||||||||||||||||||
$ | 55 | $ | 9 | $ | 27 | $ | — | $ | 38 | $ | 129 | |||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||
(in millions) | Termination | Accelerated | Transfer | Fixed Asset | Other | Total | ||||||||||||||||||
Benefits | Depreciation | Costs | Write-offs | |||||||||||||||||||||
Restructuring charges | $ | 79 | $ | — | $ | — | $ | 14 | $ | 43 | $ | 136 | ||||||||||||
Restructuring-related expenses: | ||||||||||||||||||||||||
Cost of products sold | — | — | 8 | — | — | 8 | ||||||||||||||||||
Selling, general and administrative expenses | — | 2 | — | — | 14 | 16 | ||||||||||||||||||
— | 2 | 8 | — | 14 | 24 | |||||||||||||||||||
$ | 79 | $ | 2 | $ | 8 | $ | 14 | $ | 57 | $ | 160 | |||||||||||||
(in millions) | Termination | Accelerated | Transfer | Fixed Asset | Other | Total | ||||||||||||||||||
Benefits | Depreciation | Costs | Write-offs | |||||||||||||||||||||
2011 Restructuring plan | $ | 78 | $ | 2 | $ | — | $ | 14 | $ | 55 | $ | 149 | ||||||||||||
2010 Restructuring plan | 1 | — | — | — | 2 | 3 | ||||||||||||||||||
Plant Network Optimization program | — | — | 8 | — | — | 8 | ||||||||||||||||||
$ | 79 | $ | 2 | $ | 8 | $ | 14 | $ | 57 | $ | 160 | |||||||||||||
The following presents these costs by major type and line item within our accompanying consolidated statements of operations, as well as by program: | ||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
(in millions) | Termination | Accelerated | Net (Gain) on Fixed Asset Disposals | Other | Total | |||||||||||||||||||
Benefits | Depreciation | |||||||||||||||||||||||
Restructuring charges | $ | 60 | $ | — | $ | (15 | ) | $ | 56 | $ | 101 | |||||||||||||
Restructuring-related expenses: | ||||||||||||||||||||||||
Selling, general and administrative expenses | — | 3 | — | 20 | 23 | |||||||||||||||||||
— | 3 | — | 20 | 23 | ||||||||||||||||||||
$ | 60 | $ | 3 | $ | (15 | ) | $ | 76 | $ | 124 | ||||||||||||||
(in millions) | Termination | Accelerated | Net (Gain) on Fixed Asset Disposals | Other | Total | |||||||||||||||||||
Benefits | Depreciation | |||||||||||||||||||||||
2014 Restructuring plan | $ | 29 | $ | — | $ | — | $ | 1 | $ | 30 | ||||||||||||||
2011 Restructuring plan | 37 | 3 | (15 | ) | 75 | 100 | ||||||||||||||||||
2010 Restructuring plan | — | — | — | — | — | |||||||||||||||||||
Plant Network Optimization program | (6 | ) | — | — | — | (6 | ) | |||||||||||||||||
$ | 60 | $ | 3 | $ | (15 | ) | $ | 76 | $ | 124 | ||||||||||||||
Cash payments associated with restructuring initiatives | ' | |||||||||||||||||||||||
Each of these payments was made using cash generated from operations, and are comprised of the following: | ||||||||||||||||||||||||
(in millions) | 2014 Restructuring | 2011 | 2010 | Plant | Total | |||||||||||||||||||
plan | Restructuring | Restructuring | Network | |||||||||||||||||||||
plan | plan | Optimization | ||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
Termination benefits | $ | — | $ | 61 | $ | — | $ | 1 | $ | 62 | ||||||||||||||
Transfer costs | — | — | — | — | — | |||||||||||||||||||
Other | — | 79 | — | — | 79 | |||||||||||||||||||
$ | — | $ | 140 | $ | — | $ | 1 | $ | 141 | |||||||||||||||
Program to Date | ||||||||||||||||||||||||
Termination benefits | $ | — | $ | 124 | $ | 90 | $ | 30 | $ | 244 | ||||||||||||||
Transfer costs | — | — | — | 73 | 73 | |||||||||||||||||||
Other | — | 144 | 55 | — | 199 | |||||||||||||||||||
$ | — | $ | 268 | $ | 145 | $ | 103 | $ | 516 | |||||||||||||||
Summary of accrued expenses within accompanying unaudited condensed consolidated balance sheets | ' | |||||||||||||||||||||||
The following is a rollforward of the termination benefit liability associated with our 2014 Restructuring plan, 2011 Restructuring plan, 2010 Restructuring plan and Plant Network Optimization program, since the inception of the respective plan, which is reported as a component of accrued expenses included in our accompanying consolidated balance sheets: | ||||||||||||||||||||||||
Restructuring Plan Termination Benefits | ||||||||||||||||||||||||
Plant | ||||||||||||||||||||||||
Network | ||||||||||||||||||||||||
(in millions) | 2014 | 2011 | 2010 | Optimization | Total | |||||||||||||||||||
Accrued as of December 31, 2010 | $ | — | $ | — | $ | 21 | $ | 26 | $ | 47 | ||||||||||||||
Charges | — | 21 | 24 | 10 | 55 | |||||||||||||||||||
Cash payments | — | (3 | ) | (39 | ) | (3 | ) | (45 | ) | |||||||||||||||
Accrued as of December 31, 2011 | — | 18 | 6 | 33 | 57 | |||||||||||||||||||
Charges | — | 78 | 1 | — | 79 | |||||||||||||||||||
Cash payments | — | (60 | ) | (4 | ) | (24 | ) | (88 | ) | |||||||||||||||
Accrued as of December 31, 2012 | — | 36 | 3 | 9 | 48 | |||||||||||||||||||
Charges | 29 | 37 | — | (6 | ) | 60 | ||||||||||||||||||
Cash payments | — | (61 | ) | — | (1 | ) | (62 | ) | ||||||||||||||||
Other | — | — | (3 | ) | (2 | ) | (5 | ) | ||||||||||||||||
Accrued as of December 31, 2013 | $ | 29 | $ | 12 | $ | — | $ | — | $ | 41 | ||||||||||||||
Cumulative Restructuring Charges [Text Block] | ' | |||||||||||||||||||||||
The following presents these costs by major type and by plan: | ||||||||||||||||||||||||
(in millions) | 2014 Restructuring | 2011 | 2010 | Plant | Total | |||||||||||||||||||
plan | Restructuring | Restructuring | Network | |||||||||||||||||||||
plan | plan | Optimization | ||||||||||||||||||||||
Termination benefits | $ | 29 | $ | 136 | $ | 90 | $ | 30 | $ | 285 | ||||||||||||||
Fixed asset write-offs | — | (1 | ) | 11 | — | 10 | ||||||||||||||||||
Other | — | 110 | 51 | — | 161 | |||||||||||||||||||
Total restructuring charges | 29 | 245 | 152 | 30 | 456 | |||||||||||||||||||
Accelerated depreciation | — | 5 | — | 22 | 27 | |||||||||||||||||||
Transfer costs | — | — | — | 74 | 74 | |||||||||||||||||||
Other | 1 | 34 | 8 | — | 43 | |||||||||||||||||||
Restructuring-related expenses | 1 | 39 | 8 | 96 | 144 | |||||||||||||||||||
$ | 30 | $ | 284 | $ | 160 | $ | 126 | $ | 600 | |||||||||||||||
2014 Restructuring plan [Member] | ' | |||||||||||||||||||||||
Restructuring and Related Cost [Line Items] | ' | |||||||||||||||||||||||
Impact of restructuring costs on the accompanying financial statements | ' | |||||||||||||||||||||||
The following table provides a summary of our estimates of costs associated with the 2014 Restructuring plan by major type of cost: | ||||||||||||||||||||||||
Type of cost | Total estimated amount expected to | |||||||||||||||||||||||
be incurred | ||||||||||||||||||||||||
Restructuring charges: | ||||||||||||||||||||||||
Termination benefits | $100 million to $120 million | |||||||||||||||||||||||
Other (1) | $5 million to $15 million | |||||||||||||||||||||||
Restructuring-related expenses: | ||||||||||||||||||||||||
Other (2) | $70 million to $90 million | |||||||||||||||||||||||
$175 million to $225 million | ||||||||||||||||||||||||
(1) Consists primarily of consultant fees and costs associated with contractual cancellations. | ||||||||||||||||||||||||
(2) Comprised of other costs directly related to the 2014 Restructuring plan, including program management, accelerated depreciation, and costs to transfer product lines among facilities. | ||||||||||||||||||||||||
2011 Restructuring Plan [Member] | ' | |||||||||||||||||||||||
Restructuring and Related Cost [Line Items] | ' | |||||||||||||||||||||||
Impact of restructuring costs on the accompanying financial statements | ' | |||||||||||||||||||||||
The following provides a summary of our expected total costs associated with the 2011 Restructuring plan, including the Expansion, by major type of cost: | ||||||||||||||||||||||||
Type of cost | Total estimated amount expected to | |||||||||||||||||||||||
be incurred | ||||||||||||||||||||||||
Restructuring charges: | ||||||||||||||||||||||||
Termination benefits | $135 million to $140 million | |||||||||||||||||||||||
Other (1) | $110 million to $113 million | |||||||||||||||||||||||
Restructuring-related expenses: | ||||||||||||||||||||||||
Other (2) | $40 million to $42 million | |||||||||||||||||||||||
$285 million to $295 million | ||||||||||||||||||||||||
2010 Restructuring Plan [Member] | ' | |||||||||||||||||||||||
Restructuring and Related Cost [Line Items] | ' | |||||||||||||||||||||||
Impact of restructuring costs on the accompanying financial statements | ' | |||||||||||||||||||||||
The following provides a summary of our costs associated with the 2010 Restructuring plan by major type of cost: | ||||||||||||||||||||||||
Type of cost | Total amount incurred | |||||||||||||||||||||||
Restructuring charges: | ||||||||||||||||||||||||
Termination benefits | $90 million | |||||||||||||||||||||||
Fixed asset write-offs | $11 million | |||||||||||||||||||||||
Other (1) | $51 million | |||||||||||||||||||||||
Restructuring-related expenses: | ||||||||||||||||||||||||
Other (2) | $8 million | |||||||||||||||||||||||
$160 million | ||||||||||||||||||||||||
Plant Network Optimization [Member] | ' | |||||||||||||||||||||||
Restructuring and Related Cost [Line Items] | ' | |||||||||||||||||||||||
Impact of restructuring costs on the accompanying financial statements | ' | |||||||||||||||||||||||
The following provides a summary of our costs associated with the Plant Network Optimization program by major type of cost: | ||||||||||||||||||||||||
Type of cost | Total amount incurred | |||||||||||||||||||||||
Restructuring charges: | ||||||||||||||||||||||||
Termination benefits | $30 million | |||||||||||||||||||||||
Restructuring-related expenses: | ||||||||||||||||||||||||
Accelerated depreciation | $22 million | |||||||||||||||||||||||
Transfer costs (1) | $74 million | |||||||||||||||||||||||
$126 million |
Supplemental_Balance_Sheet_Inf1
Supplemental Balance Sheet Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Supplemental Balance Sheet Information (Tables) [Abstract] | ' | ||||||||||
Trade accounts receivable, net | ' | ||||||||||
As of | |||||||||||
(in millions) | 31-Dec-13 | 31-Dec-12 | |||||||||
Accounts receivable | $ | 1,419 | $ | 1,336 | |||||||
Less: allowance for doubtful accounts | (81 | ) | (88 | ) | |||||||
Less: allowance for sales returns | (31 | ) | (31 | ) | |||||||
$ | 1,307 | $ | 1,217 | ||||||||
Rollforward of allowances for doubtful accounts | ' | ||||||||||
Year Ended | |||||||||||
December 31, | |||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||
Beginning balance | $ | 88 | $ | 81 | $ | 83 | |||||
Net charges to expenses | 5 | 14 | 11 | ||||||||
Utilization of allowances | (12 | ) | (7 | ) | (13 | ) | |||||
Ending balance | $ | 81 | $ | 88 | $ | 81 | |||||
Inventories | ' | ||||||||||
As of | |||||||||||
(in millions) | 31-Dec-13 | 31-Dec-12 | |||||||||
Finished goods | $ | 598 | $ | 598 | |||||||
Work-in-process | 90 | 70 | |||||||||
Raw materials | 209 | 216 | |||||||||
$ | 897 | $ | 884 | ||||||||
Property, plant and equipment, net | ' | ||||||||||
As of | |||||||||||
(in millions) | 31-Dec-13 | 31-Dec-12 | |||||||||
Land | $ | 81 | $ | 81 | |||||||
Buildings and improvements | 917 | 873 | |||||||||
Equipment, furniture and fixtures | 2,461 | 2,348 | |||||||||
Capital in progress | 211 | 218 | |||||||||
3,670 | 3,520 | ||||||||||
Less: accumulated depreciation | 2,124 | 1,956 | |||||||||
$ | 1,546 | $ | 1,564 | ||||||||
Accrued expenses | ' | ||||||||||
As of | |||||||||||
(in millions) | 31-Dec-13 | 31-Dec-12 | |||||||||
Legal reserves | $ | 84 | $ | 100 | |||||||
Payroll and related liabilities | 488 | 452 | |||||||||
Accrued contingent consideration | 148 | 120 | |||||||||
Other | 628 | 612 | |||||||||
$ | 1,348 | $ | 1,284 | ||||||||
Other long-term liabilities | ' | ||||||||||
As of | |||||||||||
(in millions) | 31-Dec-13 | 31-Dec-12 | |||||||||
Legal reserves | $ | 523 | $ | 391 | |||||||
Accrued income taxes | 1,283 | 1,215 | |||||||||
Accrued contingent consideration | 353 | 543 | |||||||||
Other long-term liabilities | 410 | 398 | |||||||||
$ | 2,569 | $ | 2,547 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes (Tables) [Abstract] | ' | ||||||||||||
Tax rate | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. federal statutory income tax rate | (35.0 | )% | (35.0 | )% | 35 | % | |||||||
State income taxes, net of federal benefit | (7.9 | )% | (0.2 | )% | 0.5 | % | |||||||
State law changes on deferred tax | — | % | — | % | (1.2 | )% | |||||||
Effect of foreign taxes | (63.4 | )% | (3.7 | )% | (63.7 | )% | |||||||
Non-deductible acquisition expenses | 3.5 | % | — | % | (1.9 | )% | |||||||
Research credit | (12.2 | )% | — | % | (3.4 | )% | |||||||
Valuation allowance | (12.0 | )% | 0.3 | % | (2.9 | )% | |||||||
Divestitures | — | % | — | % | 25.4 | % | |||||||
Goodwill impairment charges | 65.2 | % | 36.4 | % | 38 | % | |||||||
Non-deductible expenses | 10.7 | % | 0.1 | % | 5.7 | % | |||||||
Uncertain domestic tax positions | 7 | % | 0.8 | % | 5.6 | % | |||||||
Other, net | (1.9 | )% | 0.3 | % | (5.8 | )% | |||||||
(46.0 | )% | (1.0 | )% | 31.3 | % | ||||||||
Summary of Income Tax Contingencies [Table Text Block] | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning Balance | $ | 1,052 | $ | 987 | $ | 965 | |||||||
Additions based on positions related to the current year | 58 | 54 | 104 | ||||||||||
Additions based on positions related to prior years | 45 | 43 | 8 | ||||||||||
Reductions for tax positions of prior years | (40 | ) | (27 | ) | (72 | ) | |||||||
Settlements with taxing authorities | (15 | ) | (1 | ) | (3 | ) | |||||||
Statute of limitation expirations | (31 | ) | (4 | ) | (15 | ) | |||||||
Ending Balance | $ | 1,069 | $ | 1,052 | $ | 987 | |||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Domestic | $ | (774 | ) | $ | (1,265 | ) | $ | (437 | ) | ||||
Foreign | 551 | (2,842 | ) | 1,079 | |||||||||
$ | (223 | ) | $ | (4,107 | ) | $ | 642 | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||||
As of December 31, | |||||||||||||
(in millions) | 2013 | 2012 | |||||||||||
Deferred Tax Assets: | |||||||||||||
Inventory costs, intercompany profit and related reserves | $ | 116 | $ | 136 | |||||||||
Tax benefit of net operating loss and credits | 513 | 497 | |||||||||||
Reserves and accruals | 221 | 300 | |||||||||||
Restructuring-related charges and purchased research and development | 17 | 13 | |||||||||||
Litigation and product liability reserves | 198 | 48 | |||||||||||
Unrealized gains and losses on derivative financial instruments | — | — | |||||||||||
Investment write-down | 15 | 13 | |||||||||||
Compensation related | 143 | 171 | |||||||||||
Federal benefit of uncertain tax positions | 166 | 157 | |||||||||||
Other | 39 | 54 | |||||||||||
1,428 | 1,389 | ||||||||||||
Less valuation allowance | (299 | ) | (316 | ) | |||||||||
1,129 | 1,073 | ||||||||||||
Deferred Tax Liabilities: | |||||||||||||
Property, plant and equipment | 78 | 101 | |||||||||||
Unrealized gains and losses on derivative financial instruments | 80 | 21 | |||||||||||
Intangible assets | 2,045 | 2,187 | |||||||||||
Other | — | 1 | |||||||||||
2,203 | 2,310 | ||||||||||||
Net Deferred Tax Liabilities | $ | 1,074 | $ | 1,237 | |||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Current | |||||||||||||
Federal | $ | 46 | $ | 33 | $ | 45 | |||||||
State | (9 | ) | — | 8 | |||||||||
Foreign | 105 | 139 | 91 | ||||||||||
142 | 172 | 144 | |||||||||||
Deferred | |||||||||||||
Federal | (212 | ) | (204 | ) | 86 | ||||||||
State | (17 | ) | (7 | ) | (8 | ) | |||||||
Foreign | (15 | ) | — | (21 | ) | ||||||||
(244 | ) | (211 | ) | 57 | |||||||||
$ | (102 | ) | $ | (39 | ) | $ | 201 | ||||||
Deferred tax assets and liabilities, balance sheet presentation [Table Text Block] | ' | ||||||||||||
Our deferred tax assets and liabilities are included in the following locations within our accompanying consolidated balance sheets (in millions): | |||||||||||||
Location in | As of December 31, | ||||||||||||
Component | Balance Sheet | 2013 | 2012 | ||||||||||
Current deferred tax asset | Deferred income taxes | $ | 288 | $ | 433 | ||||||||
Non-current deferred tax asset | Other long-term assets | 42 | 54 | ||||||||||
Deferred Tax Assets | 330 | 487 | |||||||||||
Current deferred tax liability | Other current liabilities | 2 | 11 | ||||||||||
Non-current deferred tax liability | Deferred income taxes | 1,402 | 1,713 | ||||||||||
Deferred Tax Liabilities | 1,404 | 1,724 | |||||||||||
Net Deferred Tax Liabilities | $ | 1,074 | $ | 1,237 | |||||||||
Stock_Ownership_Plans_Tables
Stock Ownership Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Stock Ownership Plans [Abstract] | ' | |||||||||||||
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity [Table Text Block] | ' | |||||||||||||
Information related to shares issued or to be issued in connection with the employee stock purchase plan based on employee contributions and the range of purchase prices is as follows: | ||||||||||||||
(shares in thousands) | 2013 | 2012 | 2011 | |||||||||||
Shares issued or to be issued | 3,833 | 3,979 | 3,830 | |||||||||||
Range of purchase prices | $5.01 - $7.96 | $4.82 - $5.16 | $4.81 - $6.22 | |||||||||||
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | ' | |||||||||||||
We expect to recognize the following future expense for awards outstanding as of December 31, 2013: | ||||||||||||||
Unrecognized | Weighted | |||||||||||||
Compensation | Average | |||||||||||||
Cost | Remaining | |||||||||||||
(in millions)(1) | Vesting | |||||||||||||
Period | ||||||||||||||
(in years) | ||||||||||||||
Stock options | $ | 17 | ||||||||||||
Non-vested stock awards | 166 | |||||||||||||
$ | 183 | 1.4 | ||||||||||||
-1 | Amounts presented represent compensation cost, net of estimated forfeitures. | |||||||||||||
Market-based awards, valuation assumptions [Table Text Block] | ' | |||||||||||||
We determined the fair value of the 2013 target market-based awards to be approximately $8 million and the fair values of the 2012 and 2011 market-based awards to be approximately $8 million. We determined these fair values based on Monte Carlo simulations as of the date of grant, utilizing the following assumptions: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Awards | Awards | Awards | ||||||||||||
Stock price on date of grant | $ | 7.39 | $ | 6.28 | $ | 7.16 | ||||||||
Measurement period (in years) | 3 | 3 | 3 | |||||||||||
Risk-free rate | 0.34 | % | 0.38 | % | 1.1 | % | ||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | |||||||||||||
Information related to non-vested stock awards during 2013, 2012, and 2011 is as follows: | ||||||||||||||
Non-Vested | Weighted | |||||||||||||
Stock Award | Average | |||||||||||||
Units | Grant- | |||||||||||||
(in thousands) | Date Fair | |||||||||||||
Value | ||||||||||||||
Balance as of December 31, 2010 | 33,284 | $ | 9 | |||||||||||
Granted | 14,640 | 7 | ||||||||||||
Vested (1) | (10,344 | ) | 10 | |||||||||||
Forfeited | (4,004 | ) | 6 | |||||||||||
Balance as of December 31, 2011 | 33,576 | $ | 8 | |||||||||||
Granted | 17,073 | 6 | ||||||||||||
Vested (1) | (10,158 | ) | 9 | |||||||||||
Forfeited | (3,898 | ) | 7 | |||||||||||
Balance as of December 31, 2012 | 36,593 | $ | 7 | |||||||||||
Granted | 13,913 | 8 | ||||||||||||
Vested (1) | (10,307 | ) | 8 | |||||||||||
Forfeited | (2,860 | ) | 7 | |||||||||||
Balance as of December 31, 2013 | 37,339 | $ | 7 | |||||||||||
-1 | The number of restricted stock units vested includes shares withheld on behalf of employees to satisfy statutory tax withholding | |||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | |||||||||||||
The following presents the impact of stock-based compensation on our consolidated statements of operations for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
(in millions, except per share data) | 2013 | 2012 | 2011 | |||||||||||
Cost of products sold | $ | 8 | $ | 15 | $ | 25 | ||||||||
Selling, general and administrative expenses | 79 | 69 | 74 | |||||||||||
Research and development expenses | 18 | 24 | 29 | |||||||||||
105 | 108 | 128 | ||||||||||||
Less: income tax benefit | (29 | ) | (32 | ) | (34 | ) | ||||||||
$ | 76 | $ | 76 | $ | 94 | |||||||||
Net impact per common share - basic | $ | 0.06 | $ | 0.05 | $ | 0.06 | ||||||||
Net impact per common share - assuming dilution | $ | 0.06 | $ | 0.05 | $ | 0.06 | ||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||||
We generally use the Black-Scholes option-pricing model to calculate the grant-date fair value of stock options granted to employees under our stock incentive plans. We calculated the fair value for options granted during 2013, 2012 and 2011 using the following estimated weighted-average assumptions: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Options granted (in thousands) | 1,992 | 4,726 | 16,311 | |||||||||||
Weighted-average exercise price | $ | 7.44 | $ | 6.23 | $ | 7.11 | ||||||||
Weighted-average grant-date fair value | $ | 2.84 | $ | 2.6 | $ | 3.07 | ||||||||
Black-Scholes Assumptions | ||||||||||||||
Expected volatility | 36 | % | 43 | % | 42 | % | ||||||||
Expected term (in years, weighted) | 5.9 | 5.9 | 6.1 | |||||||||||
Risk-free interest rate | 0.89% - 1.72% | 0.95% - 1.15% | 1.16% - 2.61% | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||||
Information related to stock options for 2013, 2012 and 2011 under stock incentive plans is as follows: | ||||||||||||||
Stock Options | Weighted | Weighted | Aggregate | |||||||||||
(in thousands) | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | (in millions) | ||||||||||||
Life (in years) | ||||||||||||||
Outstanding as of December 31, 2010 | 60,374 | $ | 14 | |||||||||||
Granted | 16,311 | 7 | ||||||||||||
Exercised | (18 | ) | 7 | |||||||||||
Cancelled/forfeited | (15,746 | ) | 12 | |||||||||||
Outstanding as of December 31, 2011 | 60,921 | $ | 13 | |||||||||||
Granted | 4,726 | 6 | ||||||||||||
Exercised | — | — | ||||||||||||
Cancelled/forfeited | (10,766 | ) | 15 | |||||||||||
Outstanding as of December 31, 2012 | 54,881 | $ | 12 | |||||||||||
Granted | 1,992 | 7 | ||||||||||||
Exercised | (7,221 | ) | 8 | |||||||||||
Cancelled/forfeited | (4,760 | ) | 21 | |||||||||||
Outstanding as of December 31, 2013 | 44,892 | $ | 12 | 5.2 | $ | 137 | ||||||||
Exercisable as of December 31, 2013 | 32,927 | $ | 13 | 4.3 | 77 | |||||||||
Expected to vest as of December 31, 2013 | 11,433 | 7 | 7.6 | 58 | ||||||||||
Total vested and expected to vest as of December 31, 2013 | 44,360 | $ | 12 | 5.1 | $ | 135 | ||||||||
Weighted_Average_Shares_Outsta1
Weighted Average Shares Outstanding (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Earnings Per Share (Tables) [Abstract] | ' | |||||||
Weighted average shares outstanding | ' | |||||||
Year Ended | ||||||||
December 31, | ||||||||
(in millions) | 2013 | 2012 | 2011 | |||||
Weighted average shares outstanding - basic | 1,341.20 | 1,406.70 | 1,509.30 | |||||
Net effect of common stock equivalents | — | — | 9.7 | |||||
Weighted average shares outstanding - assuming dilution | 1,341.20 | 1,406.70 | 1,519.00 | |||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting (Tables) [Abstract] | ' | ||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Net sales | (restated) | (restated) | |||||||||||
Interventional Cardiology | $ | 2,055 | $ | 2,179 | $ | 2,444 | |||||||
Peripheral Interventions | 812 | 769 | 713 | ||||||||||
Cardiovascular | 2,867 | 2,948 | 3,157 | ||||||||||
Cardiac Rhythm Management | 1,919 | 1,927 | 2,072 | ||||||||||
Electrophysiology | 157 | 147 | 145 | ||||||||||
Rhythm Management | 2,076 | 2,074 | 2,217 | ||||||||||
Endoscopy | 1,331 | 1,242 | 1,158 | ||||||||||
Urology and Women's Health | 513 | 496 | 491 | ||||||||||
Neuromodulation | 454 | 367 | 336 | ||||||||||
MedSurg | 2,298 | 2,105 | 1,985 | ||||||||||
Net sales allocated to reportable segments | 7,241 | 7,127 | 7,359 | ||||||||||
Sales generated from business divestitures | 58 | 122 | 140 | ||||||||||
Impact of foreign currency fluctuations | (156 | ) | — | 123 | |||||||||
$ | 7,143 | $ | 7,249 | $ | 7,622 | ||||||||
Reconciliation of depreciation by reportable segment to total [Table Text Block] | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Depreciation expense | (restated) | (restated) | |||||||||||
Cardiovascular | $ | 111 | $ | 106 | $ | 116 | |||||||
Rhythm Management | 99 | 108 | 105 | ||||||||||
MedSurg | 73 | 74 | 73 | ||||||||||
Depreciation expense allocated to reportable segments | 283 | 288 | 294 | ||||||||||
Impact of foreign currency fluctuations | (4 | ) | — | 2 | |||||||||
$ | 279 | $ | 288 | $ | 296 | ||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Income (loss) before income taxes | (restated) | (restated) | |||||||||||
Cardiovascular | $ | 710 | $ | 739 | $ | 829 | |||||||
Rhythm Management | 232 | 242 | 320 | ||||||||||
MedSurg | 724 | 637 | 565 | ||||||||||
Operating income allocated to reportable segments | 1,666 | 1,618 | 1,714 | ||||||||||
Corporate expenses and currency exchange | (314 | ) | (258 | ) | (254 | ) | |||||||
Goodwill and intangible asset impairment charges and acquisition-, divestiture-, litigation-, and restructuring-related net charges | (822 | ) | (4,833 | ) | (135 | ) | |||||||
Amortization expense | (410 | ) | (395 | ) | (421 | ) | |||||||
Operating income (loss) | 120 | (3,868 | ) | 904 | |||||||||
Other expense, net | (343 | ) | (239 | ) | (262 | ) | |||||||
$ | (223 | ) | $ | (4,107 | ) | $ | 642 | ||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | ' | ||||||||||||
As of December 31, | |||||||||||||
(in millions) | 2013 | 2012 | |||||||||||
Total assets | (restated) | ||||||||||||
Cardiovascular | $ | 1,545 | $ | 1,535 | |||||||||
Rhythm Management | 1,343 | 1,350 | |||||||||||
MedSurg | 1,026 | 967 | |||||||||||
Total assets allocated to reportable segments | 3,914 | 3,852 | |||||||||||
Goodwill | 5,693 | 5,973 | |||||||||||
Other intangible assets, net | 5,950 | 6,289 | |||||||||||
All other corporate assets | 1,014 | 1,040 | |||||||||||
$ | 16,571 | $ | 17,154 | ||||||||||
Reconciliation of sales by division and region to consolidated [Table Text Block] | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Net sales | |||||||||||||
Interventional Cardiology | $ | 1,997 | $ | 2,179 | $ | 2,495 | |||||||
Cardiac Rhythm Management | 1,886 | 1,908 | 2,087 | ||||||||||
Endoscopy | 1,300 | 1,252 | 1,187 | ||||||||||
Peripheral Interventions | 789 | 774 | 731 | ||||||||||
Urology and Women’s Health | 505 | 500 | 498 | ||||||||||
Neuromodulation | 453 | 367 | 336 | ||||||||||
Electrophysiology | 155 | 147 | 147 | ||||||||||
7,085 | 7,127 | 7,481 | |||||||||||
Sales generated from divested businesses | 58 | 122 | 141 | ||||||||||
$ | 7,143 | $ | 7,249 | $ | 7,622 | ||||||||
United States | $ | 3,743 | $ | 3,756 | $ | 4,010 | |||||||
Japan | 744 | 931 | 951 | ||||||||||
Other countries | 2,598 | 2,440 | 2,520 | ||||||||||
7,085 | 7,127 | 7,481 | |||||||||||
Sales generated from divested businesses | 58 | 122 | 141 | ||||||||||
$ | 7,143 | $ | 7,249 | $ | 7,622 | ||||||||
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | ' | ||||||||||||
As of December 31, | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Long-lived assets | |||||||||||||
United States | $ | 998 | $ | 1,065 | $ | 1,141 | |||||||
Ireland | 240 | 252 | 231 | ||||||||||
Other foreign countries | 308 | 247 | 298 | ||||||||||
Property, plant and equipment, net | 1,546 | 1,564 | 1,670 | ||||||||||
Goodwill | 5,693 | 5,973 | 9,761 | ||||||||||
Other intangible assets, net | 5,950 | 6,289 | 6,473 | ||||||||||
$ | 13,189 | $ | 13,826 | $ | 17,904 | ||||||||
Changes_in_Other_Comprehensive1
Changes in Other Comprehensive Income (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Changes in Other Comprehensive Income [Abstract] | ' | ||||
Changes in Other Comprehensive Income [Table Text Block] | ' | ||||
The following table provides the reclassifications out of other comprehensive income for the years ended December 31, 2013 and December 31, 2012. Amounts in the chart below are presented net of tax. | |||||
Year Ended December 31, 2013 | |||||
(in millions) | Foreign currency translation adjustments | Unrealized gains/losses on derivative financial instruments | Defined benefit pension items / Other | Total | |
Beginning Balance | ($26) | $34 | ($41) | ($33) | |
Other comprehensive income (loss) before reclassifications | 10 | 130 | 31 | 171 | |
(Gain)/Loss reclassified from accumulated other comprehensive income | — | -23 | -9 | -32 | |
Net current-period other comprehensive income | 10 | 107 | 22 | 139 | |
Ending Balance | ($16) | $141 | ($19) | $106 | |
Year Ended December 31, 2012 | |||||
(in millions) | Foreign currency translation adjustments | Unrealized gains/losses on derivative financial instruments | Defined benefit pension items / Other | Total | |
Beginning Balance | ($58) | ($48) | ($32) | ($138) | |
Other comprehensive income (loss) before reclassifications | 32 | 59 | 1 | 92 | |
(Gain)/Loss reclassified from accumulated other comprehensive income | — | 23 | -10 | 13 | |
Net current-period other comprehensive income | 32 | 82 | -9 | 105 | |
Ending Balance | ($26) | $34 | ($41) | ($33) |
Significant_Accounting_Policie3
Significant Accounting Policies Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
reportablesegments | reportingunits | reportingunits | ||
reportingunits | reportablesegments | reportablesegments | ||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Number of Reportable Segments | 3 | ' | ' | ' |
Number of global reporting units | 7 | ' | ' | ' |
International Retirement Plan - Discount Rate - Low | 0.75% | ' | ' | ' |
International Retirement Plan - Expected Return on Plan Assets - Low | 2.75% | ' | ' | ' |
International Retirement Plan - Discount Rate - High | 3.70% | ' | ' | ' |
Executive Retirement Plan Discount Rate | 4.50% | ' | ' | ' |
Rabbi Trust Assets | $17 | $21 | ' | ' |
Expense related to matching contributions | 59 | 63 | 65 | ' |
Defined Benefit Plan, Benefit Obligation | 248 | 268 | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 166 | 130 | 115 | ' |
Defined Benefit Plan, Actual Return on Plan Assets | 25 | 11 | ' | ' |
Defined Benefit Plan, Contributions by Employer | 32 | 20 | ' | ' |
Defined Benefit Plan, Benefits Paid | -15 | -13 | ' | ' |
Defined Benefit Plan, Transfers Between Measurement Levels | 0 | 0 | ' | ' |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Benefit Obligation | -6 | -3 | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | 82 | 138 | ' | ' |
Shipping, Handling and Transportation Costs | 97 | 105 | 100 | ' |
Foreign Currency Transaction Gain (Loss), before Tax | -11 | -18 | -12 | ' |
Equity Method Investments | 18 | 16 | ' | ' |
Number of U.S. reporting units | ' | 6 | 6 | ' |
Percent of finished goods at consignment | 40.00% | 40.00% | ' | ' |
Product Warranty Accrual | 28 | 26 | 30 | 43 |
Product Warranty Expense | 12 | 8 | 9 | ' |
Product Warranty Accrual, Payments | -10 | -12 | -22 | ' |
Valuation Allowances and Reserves, Deductions | -12 | -7 | -13 | ' |
Depreciation | 279 | 288 | 296 | ' |
Accounts receivable 180 days past due | 95 | ' | ' | ' |
Accounts receivable 365 days past due | 50 | ' | ' | ' |
Number of international reporting units | ' | 4 | 4 | ' |
Cost Method Investments | 20 | 13 | ' | ' |
Notes receivable from portfolio companies | 13 | 5 | ' | ' |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 11,902 | 11,041 | ' | ' |
Executive Retirement Plan Rate of Compensation Increase | 3.00% | ' | ' | ' |
Guidant Retirement Plan Discount Rate | 5.00% | ' | ' | ' |
Guidant Retirement Plan Expected Return in Plan Assets | 5.50% | ' | ' | ' |
Guidant Supplemental Retirement Plan Discount Rate | 4.75% | ' | ' | ' |
Guidant Healthcare Retirement Plan LT Cost Trend Rate | 5.00% | ' | ' | ' |
International Retirement Plan Rate of Compensation Increase | 3.00% | ' | ' | ' |
International Retirement Plan - Expected Return on Plan Assets - High | 4.10% | ' | ' | ' |
Concentration Risk, Customer | '0 | '0 | '0 | ' |
Executive retirement plan [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Defined Benefit Plan, Benefit Obligation | 10 | 13 | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | 10 | 13 | ' | ' |
Guidant retirement plan [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Defined Benefit Plan, Benefit Obligation | 120 | 131 | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 114 | 87 | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | 6 | 44 | ' | ' |
Guidant supplement retirement plan [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Defined Benefit Plan, Benefit Obligation | 31 | 34 | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | 31 | 34 | ' | ' |
Guidant healthcare retirement benefit plan [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Defined Benefit Plan, Benefit Obligation | 3 | 5 | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | 3 | 5 | ' | ' |
International retirement plans [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Defined Benefit Plan, Benefit Obligation | 84 | 85 | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 52 | 43 | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | $32 | $42 | ' | ' |
Low end of range [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Guidant Healthcare Retirement Plan Discount Rate | 1.00% | ' | ' | ' |
Minimum [Member] | Building and Building Improvements [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '20 years | ' | ' | ' |
Minimum [Member] | Equipment [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' | ' | ' |
Minimum [Member] | Patents [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Useful Life | '2 years | ' | ' | ' |
Minimum [Member] | Technology-related [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Useful Life | '5 years | ' | ' | ' |
Minimum [Member] | Customer Relationships [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Useful Life | '5 years | ' | ' | ' |
Maximum [Member] | Building and Building Improvements [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '40 years | ' | ' | ' |
Maximum [Member] | Equipment [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '10 years | ' | ' | ' |
Maximum [Member] | Patents [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Useful Life | '20 years | ' | ' | ' |
Maximum [Member] | Technology-related [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Useful Life | '25 years | ' | ' | ' |
Maximum [Member] | Customer Relationships [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Useful Life | '25 years | ' | ' | ' |
High end of range [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Guidant Healthcare Retirement Plan Discount Rate | 2.00% | ' | ' | ' |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 2 Months Ended | 3 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 01, 2013 | Nov. 19, 2012 | Oct. 08, 2012 | Oct. 04, 2012 | Jun. 08, 2012 | Jan. 05, 2011 | Oct. 04, 2012 | Oct. 08, 2012 | Dec. 31, 2013 | Nov. 01, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Jun. 08, 2012 | Jan. 04, 2011 | Jan. 05, 2011 | Feb. 15, 2011 | Mar. 03, 2011 | Dec. 31, 2011 | Mar. 31, 2011 | Nov. 19, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 01, 2013 | Jun. 30, 2012 | Dec. 31, 2013 | Nov. 01, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | |
BridgePoint [Member] | Rhythmia [Member] | 2013 Acquisitions [Member] | 2013 Acquisitions [Member] | 2012 Acquisitions [Member] | 2012 Acquisitions [Member] | 2012 Acquisitions [Member] | Sadra Medical, Inc. [Member] | Intelect Medical, Inc., [Member] | ReVascular Therapeutics, Inc. [Member] | Atritech, Inc. [Member] | 2011 Acquisitions [Member] | 2011 Acquisitions [Member] | Vessix [Member] | R&D- and commercialization-based milestones [Member] | R&D- and commercialization-based milestones [Member] | R&D- and commercialization-based milestones [Member] | Customer Contracts [Member] | Customer Contracts [Member] | Customer Contracts [Member] | Technology-related [Member] | Technology-related [Member] | Technology-related [Member] | Purchased research and development [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Monte Carlo [Member] | Monte Carlo [Member] | Monte Carlo [Member] | Low end of range [Member] | Low end of range [Member] | Low end of range [Member] | Low end of range [Member] | High end of range [Member] | High end of range [Member] | High end of range [Member] | High end of range [Member] | |||||||||||
Minimum [Member] | Maximum [Member] | 2013 Acquisitions [Member] | 2013 Acquisitions [Member] | 2012 Acquisitions [Member] | 2013 Acquisitions [Member] | 2013 Acquisitions [Member] | 2012 Acquisitions [Member] | 2012 Acquisitions [Member] | revenue-based payments [Member] | revenue-based payments [Member] | revenue-based payments [Member] | revenue-based payments [Member] | revenue-based payments [Member] | revenue-based payments [Member] | Technology-related [Member] | Technology-related [Member] | Purchased research and development [Member] | Purchased research and development [Member] | Technology-related [Member] | Technology-related [Member] | Purchased research and development [Member] | Purchased research and development [Member] | ||||||||||||||||||||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | 2012 Acquisitions [Member] | 2011 Acquisitions [Member] | 2012 Acquisitions [Member] | 2011 Acquisitions [Member] | 2012 Acquisitions [Member] | 2011 Acquisitions [Member] | 2012 Acquisitions [Member] | 2011 Acquisitions [Member] | |||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum future contingent consideration for acquisitions completed after January 1, 2009 | ' | ' | $2,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial cash payments for 2012 acquisitions | ' | ' | ' | 367,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential payments based on acheiving certain milestones | ' | ' | ' | 1,615,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combinations Equity Ownership Before Transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Purchase Price Allocation, Notes Payable and Long-term Debt | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued Contingent Consideration | -358,000,000 | ' | -501,000,000 | -663,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration recognized in the period | ' | ' | 0 | -467,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration recognized in the period - adjustments to prior acquisitions | ' | ' | 1,000,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent payment related to business combination | ' | ' | 165,000,000 | 154,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The components of the preliminary purchase price as of the acquisition date for acquisitions consummated in the first quarter of 2011 are as follows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment to acquire in cash | ' | ' | ' | ' | 274,000,000 | 125,000,000 | 90,000,000 | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 367,000,000 | 193,000,000 | 60,000,000 | 19,000,000 | 98,000,000 | ' | 370,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of contingent consideration | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -467,000,000 | ' | ' | ' | ' | ' | -287,000,000 | ' | -84,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -126,000,000 | ' | ' | -291,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prior investments | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,000,000 | ' | ' | ' | ' | ' | 55,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 274,000,000 | 274,000,000 | ' | 922,000,000 | 922,000,000 | ' | ' | ' | ' | ' | 712,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The preliminary purchase price allocation: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140,000,000 | ' | ' | 566,000,000 | ' | ' | ' | ' | ' | 266,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortizable intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 112,000,000 | ' | ' | 189,000,000 | ' | ' | ' | ' | ' | 97,000,000 | ' | ' | ' | ' | ' | ' | 30,000,000 | 2,000,000 | ' | 82,000,000 | 187,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | '7 years 0 months 0 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | '5 years | '10 years | ' | '8 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-lived intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 132,000,000 | ' | ' | ' | ' | ' | 470,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 132,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | -121,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 712,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional Acquisitions (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment to acquire in cash | ' | ' | ' | ' | 274,000,000 | 125,000,000 | 90,000,000 | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 367,000,000 | 193,000,000 | 60,000,000 | 19,000,000 | 98,000,000 | ' | 370,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of equity acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | 86.00% | 85.00% | 100.00% | 100.00% | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future acquisition related consideration contingent upon the achievement of certain revenue-based milestones | ' | ' | ' | ' | ' | 300,000,000 | 175,000,000 | 90,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | 275,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note receivable from acquired company prior to acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-adjusted discount rate for contingent consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.80% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisitions (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains on previously held equity interests | ' | 38,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business combination, liabilities arising from contingencies, amount recognized | ' | 467,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of prior equity ownership interest in Sadra and Intelect | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,000,000 | ' | ' | ' | ' | ' | 55,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Purchse Price Allocation, Net Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 567,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | ' | ' | -4,000,000 | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial cash payment for Cameron acquisition | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential payment due upon FDA approval of S-ICD system | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum potential payment due upon achievement of certain milestones, per Cameron agreement | ' | ' | ' | 1,050,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Purchase Price Allocation, Other Noncurrent Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,000,000 | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Range Of Risk Adjusted Discount Rates Used In Purchase Price Allocation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.50% | ' | 14.00% | 11.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.00% | 23.00% | 14.00% | 23.00% | 28.00% | 25.00% | 28.00% | 30.00% |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $112,000,000 | $321,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
contingent consideration liability, probability of payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
contingent consideration liability, projected year of payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2014 | '2017 | ' | '2014 | '2018 | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue Volatility - Contingent Consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.00% | 26.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Divestitures_Details
Divestitures (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Purchase Price for Divestiture of Business | $1,500 | ' | ' | ' | ' |
Proceeds from Divestiture of Businesses | ' | 10 | 30 | 10 | 1,450 |
Proceeds from divestiture of business, excluding amounts placed in escrow | 1,426 | ' | ' | ' | ' |
Amount Placed In Escrow Included In Proceeds From Divestiture Of Business | 24 | ' | ' | ' | ' |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | ' | ' | 38 | 15 | 778 |
Gain On Divestiture Of Business Net Of Tax | ' | ' | 26 | 12 | 545 |
Disposal Group, Including Discontinued Operation, Revenue | ' | ' | $58 | $122 | $141 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
reportablesegments | reportablesegments | reportablesegments | ||||||||||
reportingunits | reportingunits | reportingunits | ||||||||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
In process research and development associated with Asthmax & Intelect | ' | ' | ' | $26 | ' | ' | ' | ' | $26 | ' | ' | ' |
In process research and development associated with Sadra | ' | ' | ' | ' | 184 | ' | ' | ' | ' | ' | ' | ' |
In process research and development associated with Asthmax & Intelect | ' | 178 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate used for measurement of fair value of Asthmax & Intelect IPR&D asset - Minimum | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' |
Future Amortization Expense, Year One | ' | ' | ' | ' | ' | ' | ' | ' | ' | 433 | ' | ' |
Finite-Lived Intangible Assets, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,630 | 9,389 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,147 | -3,785 | ' |
Goodwill, Impaired, Accumulated Impairment Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | -9,900 | -9,477 | -5,127 |
Goodwill (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment charges | ' | ' | 423 | 748 | 3,602 | ' | ' | 697 | ' | 423 | 4,350 | 697 |
Goodwill, Impairment Loss, Net of Tax | ' | ' | 421 | ' | 3,579 | ' | ' | ' | ' | ' | ' | ' |
Allocated Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,693 | 5,973 | 9,761 |
Intangible Assets, Net (Excluding Goodwill) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,950 | 6,289 | 6,473 |
Goodwill, Purchase Accounting Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | -1 | ' |
Goodwill, Acquired During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140 | 563 | ' |
Other Intangible Assets (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other intangible asset charges | ' | ' | ' | 13 | 129 | 9 | 12 | ' | ' | 53 | 142 | 21 |
Intangible asset impairment charge, net of tax | ' | ' | ' | 10 | 110 | ' | ' | ' | ' | ' | ' | ' |
Goodwill, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,593 | 15,450 | ' |
Intangible assets reclassified from unamortizable to amortizable | 45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-lived intangible assets, accumulated write-offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | -9,900 | -9,477 | ' |
Indefinite-lived intangible assets, including goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,790 | 15,692 | ' |
Future Amortization Expense, Year Two | ' | ' | ' | ' | ' | ' | ' | ' | ' | 441 | ' | ' |
Future Amortization Expense, Year Three | ' | ' | ' | ' | ' | ' | ' | ' | ' | 441 | ' | ' |
Future Amortization Expense, Year Four | ' | ' | ' | ' | ' | ' | ' | ' | ' | 440 | ' | ' |
Future Amortization Expense, Year Five | ' | ' | ' | ' | ' | ' | ' | ' | ' | 441 | ' | ' |
Discount rate used for measurement of fair value of Asthmax and Intelect IPRD asset - Maximum | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' |
Discount rate used for measurement of fair value of Sadra IPR&D asset | ' | 16.50% | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' |
Number of Reportable Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Number of U.S. reporting units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 6 |
Number of international reporting units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 4 |
International goodwill as of 12/31/12 that was reallocated to global divisions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,764 | ' |
US CV goodwill as of 12/31/12 that was reallocated to IC and PI global divisions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,380 | ' |
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' |
Global CRM Reporting Unit [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Intangible Assets (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Terminal value growth rate | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market-participant risk-adjusted weighted average cost of capital (WACC) | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cardiovascular [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, Impaired, Accumulated Impairment Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,479 | -1,479 | 0 |
Goodwill (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -1,479 | ' |
Allocated Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,252 | 3,249 | 4,542 |
Goodwill, Purchase Accounting Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 0 | ' |
Goodwill, Acquired During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 186 | ' |
Rhythm Management [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, Impaired, Accumulated Impairment Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6,960 | -6,537 | -5,127 |
Goodwill (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | -423 | -1,410 | ' |
Allocated Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | 294 | 577 | 1,661 |
Goodwill, Purchase Accounting Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -1 | ' |
Goodwill, Acquired During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140 | 327 | ' |
MedSurg [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, Impaired, Accumulated Impairment Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,461 | -1,461 | 0 |
Goodwill (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -1,461 | ' |
Allocated Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,147 | 2,147 | 3,558 |
Goodwill, Purchase Accounting Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Goodwill, Acquired During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 50 | ' |
Global Neuromodulation (NM) Reporting Unit [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Goodwill | ' | 1,356 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Neuromodulation [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Level Of Excess Fair Value Over Carrying Value For Reporting Unit | ' | ' | ' | ' | 16.00% | ' | ' | ' | ' | ' | ' | ' |
Other Intangible Assets (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Hypothetical change in WACC | ' | 0.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Hypothetical change in revenue growth rates | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. CRM Reporting Unit [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Intangible Assets (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Long-term Revenue Growth Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | ' |
Technology Developed [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,374 | 4,636 | ' |
Technology-related [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,272 | 8,020 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,342 | -3,005 | ' |
Other Intangible Assets (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other intangible asset charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 9 |
Patents [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | 513 | 559 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | -326 | -352 | ' |
Other Intangible Assets [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | 845 | 810 | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | -479 | -428 | ' |
Purchased research and development [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Intangible Assets (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other intangible asset charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53 | 142 | 12 |
Technology Core [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Intangible Assets (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 197 | 242 | ' |
Purchased research and development [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Intangible Assets (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 270 | 443 | ' |
2011 Acquisitions, excluding Sadra [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Intangible Assets (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other intangible asset charges | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sadra Medical Inc [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Intangible Assets (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other intangible asset charges | ' | $51 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2011 | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Currency Hedge Contracts Liabilities | ' | ' | ' | ' | $2,564 | $2,469 | ' |
Accrued Contingent Consideration | ' | ' | ' | ' | 501 | 663 | 358 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cost Method Investments | ' | ' | ' | ' | 20 | 13 | ' |
Time Deposits, at Carrying Value | ' | ' | ' | ' | 31 | ' | ' |
Cash | ' | ' | ' | ' | 148 | 168 | ' |
Gain (loss) related to ineffective portion of hedging relationships | ' | ' | ' | ' | 1 | ' | -5 |
Impairment of Intangible Assets (Excluding Goodwill) | 13 | 129 | 9 | 12 | 53 | 142 | 21 |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | ' | ' | ' | ' | 36 | -39 | -95 |
Gain (Loss) in AOCI for effective portion of cash flow hedges | ' | ' | ' | ' | 139 | 31 | ' |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | ' | ' | ' | ' | 75 | ' | ' |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | ' | ' | ' | ' | 1,952 | 1,942 | ' |
Notional Amount of Interest Rate Derivatives | ' | ' | ' | ' | 450 | ' | ' |
Interest Rate Derivatives, at Fair Value, Net | ' | ' | ' | ' | 450 | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | ' | ' | ' | ' | 1 | 2 | 1 |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | ' | ' | ' | ' | 0 | 0 | ' |
Unamortized gains on senior notes | ' | ' | ' | ' | 54 | 64 | ' |
Unamortized losses on senior notes | ' | ' | ' | ' | 2 | 3 | ' |
Unrealized gain on interest rate cash flow hedges, pretax, AOCI | ' | ' | ' | ' | 3 | 4 | ' |
Gain (loss) recognized in earnings for previously terminated interest rate swaps | ' | ' | ' | ' | 10 | 11 | ' |
Gain (loss) on previously terminated interest rate swaps to be reclassified within twelve months | ' | ' | ' | ' | 9 | ' | ' |
Asset Impairment Charges | ' | ' | ' | ' | 476 | 4,492 | ' |
Debt Instrument, Fair Value Disclosure | ' | ' | ' | ' | 4,602 | 4,793 | ' |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | ' | ' | ' | ' | 37 | -37 | -94 |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | ' | ' | ' | ' | 207 | 95 | -66 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Cost of products sold [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | ' | ' | ' | ' | 36 | -39 | -95 |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | ' | ' | ' | ' | 207 | 95 | -66 |
Not Designated as Hedging Instrument [Member] | Other, net [Member] | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net gain (loss) from foreign currency transaction exposures | ' | ' | ' | ' | -113 | -41 | -24 |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | ' | ' | ' | ' | 102 | 23 | 12 |
Foreign Currency Transaction Gain (Loss), Realized | ' | ' | ' | ' | -11 | -18 | -12 |
Gain on hedged debt obligation [Member] | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Interest Expense, Other | ' | ' | ' | ' | 7 | ' | ' |
Loss on hedged debt obligation [Member] | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Interest Expense, Other | ' | ' | ' | ' | -8 | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments in Hedges, Assets, at Fair Value | ' | ' | ' | ' | 1 | ' | ' |
Derivative Instruments in Hedges, Liabilities, at Fair Value | ' | ' | ' | ' | 8 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Money Market Funds, at Carrying Value | ' | ' | ' | ' | 38 | 39 | ' |
Assets, Fair Value Disclosure | ' | ' | ' | ' | 38 | 39 | ' |
Liabilities, Fair Value Disclosure | ' | ' | ' | ' | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Contract, Asset, Fair Value Disclosure | ' | ' | ' | ' | 264 | 121 | ' |
Assets, Fair Value Disclosure | ' | ' | ' | ' | 265 | 121 | ' |
Currency Hedge Contracts Liabilities | ' | ' | ' | ' | 55 | 57 | ' |
Liabilities, Fair Value Disclosure | ' | ' | ' | ' | 63 | 57 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Assets, Fair Value Disclosure | ' | ' | ' | ' | 0 | ' | ' |
Accrued Contingent Consideration | ' | ' | ' | ' | 501 | 663 | ' |
Liabilities, Fair Value Disclosure | ' | ' | ' | ' | 501 | 663 | ' |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Money Market Funds, at Carrying Value | ' | ' | ' | ' | 38 | 39 | ' |
Foreign Currency Contract, Asset, Fair Value Disclosure | ' | ' | ' | ' | 264 | 121 | ' |
Derivative Instruments in Hedges, Assets, at Fair Value | ' | ' | ' | ' | 1 | ' | ' |
Assets, Fair Value Disclosure | ' | ' | ' | ' | 303 | 160 | ' |
Currency Hedge Contracts Liabilities | ' | ' | ' | ' | 55 | 57 | ' |
Accrued Contingent Consideration | ' | ' | ' | ' | 501 | 663 | ' |
Derivative Instruments in Hedges, Liabilities, at Fair Value | ' | ' | ' | ' | 8 | ' | ' |
Liabilities, Fair Value Disclosure | ' | ' | ' | ' | $564 | $720 | ' |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details BS Table) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives Fair Value [Line Items] | ' | ' |
Derivative Assets | $265 | $121 |
Derivative Liabilities | 63 | 57 |
Designated as Hedging Instrument [Member] | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Derivative Instruments in Hedges, Assets, at Fair Value | 238 | 88 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 40 | 30 |
Not Designated as Hedging Instrument [Member] | Prepaid And Other Current Assets [Member] | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 27 | 33 |
Not Designated as Hedging Instrument [Member] | Other current liabilities [Member] | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 23 | 27 |
Currency hedge contracts [Member] | Designated as Hedging Instrument [Member] | Prepaid And Other Current Assets [Member] | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Derivative Instruments in Hedges, Assets, at Fair Value | 117 | 25 |
Currency hedge contracts [Member] | Designated as Hedging Instrument [Member] | Other Long Term Assets [Member] | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Derivative Instruments in Hedges, Assets, at Fair Value | 120 | 63 |
Currency hedge contracts [Member] | Designated as Hedging Instrument [Member] | Other current liabilities [Member] | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 13 | 20 |
Currency hedge contracts [Member] | Designated as Hedging Instrument [Member] | Other Long Term Liabilities [Member] | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 19 | 10 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Prepaid And Other Current Assets [Member] | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Derivative Instruments in Hedges, Assets, at Fair Value | 1 | 0 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Long Term Liabilities [Member] | ' | ' |
Derivatives Fair Value [Line Items] | ' | ' |
Derivative Instruments in Hedges, Liabilities, at Fair Value | $8 | $0 |
Borrowings_and_Credit_Arrangem2
Borrowings and Credit Arrangements (Details) | 3 Months Ended | 12 Months Ended | 20 Months Ended | 3 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 18, 2012 | Dec. 31, 2013 | Aug. 06, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 13, 2013 | Aug. 13, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | Uncommitted Credit Facilities With Two Commercial Japanese Banks [Member] | Uncommitted Credit Facilities With Two Commercial Japanese Banks [Member] | Uncommitted Credit Facilities With Two Commercial Japanese Banks [Member] | Senior Notes [Member] | Unsecured Term Loan Facility [Member] | Covenant Requirement [Member] | Actual, Covenant [Member] | Credit Facility One [Member] | Credit Facility One [Member] | Unsecured Term Loan Facility [Member] | Unsecured Term Loan Facility [Member] | Uncommitted Credit Facilities With Two Commercial Japanese Banks [Member] | November 2015 Notes [Member] | June 2016 Notes [Member] | January 2017 Notes [Member] | October 2018 Notes [Member] | January 2020 Notes [Member] | October 2023 Notes [Member] | November 2035 Notes [Member] | January 2040 Notes [Member] | $600 million, Senior Note [Member] | $450 million, Senior Note [Member] | $600 million, Snr Note [Member] | $850 million, Senior Note [Member] | |
USD ($) | JPY (¥) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes issued | ' | $2,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase rate of senior notes issued in ’09 and ’13 in event change-in-control | ' | 1.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Current Maturities | ' | 0 | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of Credit Outstanding, Amount | ' | 78,000,000 | 94,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of debt maturities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments due, 2012 | ' | 400,000,000 | ' | ' | ' | ' | ' | 400,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments due, 2013 | ' | 680,000,000 | ' | ' | ' | ' | ' | 600,000,000 | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments due, 2014 | ' | 330,000,000 | ' | ' | ' | ' | ' | 250,000,000 | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments due, 2015 | ' | 840,000,000 | ' | ' | ' | ' | ' | 600,000,000 | 240,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments due, Thereafter | ' | 1,950,000,000 | ' | ' | ' | ' | ' | 1,950,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments due, Total | ' | 4,200,000,000 | ' | ' | ' | ' | ' | 3,800,000,000 | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of compliance with debt covenants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Leverage Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.5 | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum interest coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 5.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings and Credit Arrangements (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | ' | 4,240,000,000 | 4,256,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.25% | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' |
Revolving credit facility | ' | 300,000,000 | ' | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Margin above LIBOR, Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.88% | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Margin above LIBOR, Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.48% | ' | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current interest rate on revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.28% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.23% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of exclusions from EBITDA related to existing restructuring plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges remaining to be excluded from calculation of consolidated EBITDA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 234,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of exclusions from EBITDA related to future litigation charges and payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal payments remaining to be excluded from calculation of consolidated EBITDA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,185,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes | ' | 3,800,000,000 | 4,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000,000 | 600,000,000 | 250,000,000 | 600,000,000 | 850,000,000 | 450,000,000 | 350,000,000 | 300,000,000 | 600,000,000 | 450,000,000 | ' | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.65% | 4.13% | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.50% | 6.40% | 5.13% | 2.65% | 6.00% | 4.13% | 6.25% | 7.38% | ' | ' | ' | ' |
Maximum amount of proceeds from sale of finance receivables | ' | 312,000,000 | ' | ' | 200,000,000 | 21,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
De-recognized receivables | ' | 146,000,000 | 191,000,000 | ' | 147,000,000 | ' | 182,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average interest rate of de-recognized receivables | ' | 3.30% | 1.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average discounted rates of notes receivables | ' | ' | ' | ' | ' | ' | 1.60% | ' | ' | ' | ' | ' | ' | ' | ' | 1.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured Term Loan Facility, Interest Rate During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly term-loan principal payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000,000 | 850,000,000 |
Payments of Debt Extinguishment Costs | 70,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of Debt Extinguishment Costs, net of tax | $44,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating Leases, Rent Expense, Net | $77 | $80 | $90 |
Operating Leases, Future Minimum Payments Due, Current | 64 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Two Years | 51 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Three Years | 43 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Four Years | 29 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Five Years | 25 | ' | ' |
Operating Leases, Future Minimum Payments, Due Thereafter | 42 | ' | ' |
Operating Leases, Future Minimum Payments Due | $254 | ' | ' |
Restructuring_Related_Activiti2
Restructuring Related Activities (Details in Narrative) (USD $) | 12 Months Ended | 60 Months Ended | 3 Months Ended | 12 Months Ended | 29 Months Ended | 12 Months Ended | 47 Months Ended | 12 Months Ended | 60 Months Ended | 12 Months Ended | 60 Months Ended | 3 Months Ended | 12 Months Ended | 29 Months Ended | 12 Months Ended | 47 Months Ended | 12 Months Ended | 60 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
2014 Restructuring plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||||||
2014 Restructuring plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | Plant Network Optimization [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Reserve | $41 | $48 | $57 | $41 | $47 | ' | ' | ' | ' | ' | ' | ' | ' | $8 | $5 | ' | $8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Charges | 101 | 136 | 89 | 456 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56 | 43 | 34 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring plan estimated future cash outflow | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 160 | 270 | 145 | 103 | 210 | 280 |
Payments for Restructuring | 141 | ' | ' | 516 | ' | 0 | 0 | 140 | 268 | 0 | 145 | 1 | 103 | 79 | ' | ' | 199 | 0 | 0 | 79 | 144 | 0 | 55 | 0 | 0 | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Cost Incurred to Date | ' | ' | ' | 600 | ' | 30 | ' | ' | 284 | ' | 160 | ' | 126 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | 160 | ' | 126 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175 | 285 | ' | 126 | 225 | 295 |
Restructuring Related Expenses | $23 | $24 | $40 | $144 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20 | $14 | $4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring_Related_Activiti3
Restructuring Related Activities (Details in Tables) (USD $) | 12 Months Ended | 60 Months Ended | 3 Months Ended | 12 Months Ended | 29 Months Ended | 12 Months Ended | 60 Months Ended | 12 Months Ended | 47 Months Ended | 12 Months Ended | 60 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 29 Months Ended | 12 Months Ended | 60 Months Ended | 12 Months Ended | 47 Months Ended | 12 Months Ended | 60 Months Ended | 3 Months Ended | 12 Months Ended | 29 Months Ended | 12 Months Ended | 60 Months Ended | 12 Months Ended | 47 Months Ended | 12 Months Ended | 60 Months Ended | 3 Months Ended | 12 Months Ended | 29 Months Ended | 12 Months Ended | 60 Months Ended | 12 Months Ended | 47 Months Ended | 12 Months Ended | 60 Months Ended | 3 Months Ended | 12 Months Ended | 29 Months Ended | 12 Months Ended | 60 Months Ended | 12 Months Ended | 47 Months Ended | 12 Months Ended | 60 Months Ended | 3 Months Ended | 12 Months Ended | 29 Months Ended | 12 Months Ended | 60 Months Ended | 12 Months Ended | 47 Months Ended | 12 Months Ended | 60 Months Ended | 3 Months Ended | 12 Months Ended | 29 Months Ended | 12 Months Ended | 60 Months Ended | 12 Months Ended | 47 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
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[Member] | Employee Severance, Other [Member] | Employee Severance, Other [Member] | Employee Severance, Other [Member] | Employee Severance, Other [Member] | Employee Severance, Other [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Transfer costs [Member] | Restructuring Plan [Member] | Restructuring Plan [Member] | Restructuring Plan [Member] | Restructuring Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Cost of products sold [Member] | Cost of products sold [Member] | Cost of products sold [Member] | Cost of products sold [Member] | Cost of products sold [Member] | Cost of products sold [Member] | Cost of products sold [Member] | Cost of products sold [Member] | Cost of products sold [Member] | Cost of products sold [Member] | Cost of products sold [Member] | Cost of products sold [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | ||||||
2014 Restructuring plan [Member] | 2014 Restructuring plan [Member] | 2014 Restructuring plan [Member] | 2014 Restructuring plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | Plant Network Optimization [Member] | 2010 Restructuring Plan [Member] | 2014 Restructuring plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2014 Restructuring plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2014 Restructuring plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2014 Restructuring plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2014 Restructuring plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | 2011 Restructuring Plan [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | Employee Severance [Member] | Employee Severance [Member] | Impairment of an asset in value [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Accelerated Depreciation [Member] | Transfer costs [Member] | Employee Severance [Member] | Employee Severance [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Transfer costs [Member] | Transfer costs [Member] | Employee Severance [Member] | Employee Severance [Member] | Employee Severance [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Impairment of an asset in value [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Accelerated Depreciation [Member] | Transfer costs [Member] | Transfer costs [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | Plant Network Optimization [Member] | Restructuring Plan [Member] | Restructuring Plan [Member] | Restructuring Plan [Member] | Restructuring Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | Restructuring Plan [Member] | Restructuring Plan [Member] | Restructuring Plan [Member] | Restructuring Plan [Member] | Restructuring Related To Plan [Member] | Restructuring Related To Plan [Member] | |||||||||||||||||||||||||||||||||||||||
Plant Network Optimization [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | 2010 Restructuring Plan [Member] | Plant Network Optimization [Member] | Plant Network Optimization [Member] | Employee Severance [Member] | Employee Severance [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Employee Severance [Member] | Employee Severance [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | 2014 Restructuring plan [Member] | 2011 Restructuring Plan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | $126 | ' | $160 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30 | $90 | $11 | $51 | $8 | $22 | $74 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $175 | $285 | $126 | $100 | $135 | $5 | $110 | $70 | $40 | $225 | $295 | $120 | $140 | $15 | $113 | $90 | $42 |
Restructuring Reserve | 41 | 48 | 57 | 41 | 47 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29 | 29 | 0 | 0 | 0 | 12 | 36 | 18 | 12 | 0 | 0 | 9 | 33 | 0 | 26 | 0 | 3 | 6 | 0 | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 5 | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for Restructuring | 141 | ' | ' | 516 | ' | 0 | 0 | 140 | 268 | 1 | 103 | 0 | 145 | 62 | ' | ' | 244 | 0 | 0 | ' | ' | ' | 61 | ' | ' | 124 | ' | 1 | ' | ' | 30 | ' | 0 | ' | ' | 90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79 | ' | ' | 199 | 0 | 0 | 79 | ' | ' | 144 | 0 | ' | ' | 0 | 0 | ' | ' | 55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 73 | 0 | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 73 | 0 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Charges Incurred to Date | ' | ' | ' | 456 | ' | 29 | ' | ' | 245 | ' | 30 | ' | 152 | ' | ' | ' | 285 | 29 | ' | ' | ' | ' | ' | ' | ' | 136 | ' | ' | ' | ' | 30 | ' | ' | ' | ' | 90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | 0 | ' | ' | ' | ' | -1 | ' | ' | ' | 0 | ' | ' | ' | 11 | ' | ' | ' | 161 | 0 | ' | ' | ' | ' | 110 | ' | ' | ' | 0 | ' | ' | ' | 51 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Charges | 101 | 136 | 89 | 456 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60 | 79 | 55 | ' | ' | 29 | 0 | 0 | ' | 37 | 78 | 21 | ' | ' | -6 | 0 | 10 | ' | ' | 0 | 1 | 24 | ' | ' | -5 | 0 | 0 | -2 | -3 | -15 | 14 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56 | 43 | 34 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101 | 136 | 89 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Reserve, Settled with Cash | 62 | 88 | 45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | 61 | 60 | 3 | ' | ' | 1 | 24 | 3 | ' | ' | 0 | 4 | 39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Related Expenses | 23 | 24 | 40 | 144 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | 14 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24 | 40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 2 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 27 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | 8 | 36 | 0 | 9 | 8 | 27 | 0 | 0 | 0 | 0 | 0 | 0 | 20 | 14 | 4 | 23 | 16 | 4 | 3 | 2 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Incurred Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60 | 79 | 55 | ' | ' | 29 | ' | ' | ' | 37 | 78 | 21 | ' | ' | -6 | 0 | 10 | ' | ' | 0 | 1 | 24 | ' | ' | ' | ' | ' | ' | ' | -15 | 14 | 0 | ' | ' | 0 | -15 | 14 | 0 | ' | 0 | 0 | 0 | ' | 0 | 0 | 0 | ' | 76 | 57 | 38 | ' | ' | 1 | 75 | 55 | 14 | ' | 0 | 0 | 0 | ' | 0 | 2 | 24 | ' | 124 | 160 | 129 | ' | ' | 30 | 100 | 149 | 35 | ' | -6 | 8 | 45 | ' | 0 | 3 | 49 | ' | 3 | 2 | 9 | ' | ' | 0 | 3 | 2 | 0 | ' | 0 | 0 | 8 | ' | 0 | 0 | 1 | ' | ' | 8 | 27 | ' | ' | ' | ' | 0 | 0 | ' | ' | 8 | 27 | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring-related Costs Incurred to Date | ' | ' | ' | 144 | ' | 1 | ' | ' | 39 | ' | 96 | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43 | 1 | ' | ' | ' | ' | 34 | ' | ' | ' | 0 | ' | ' | ' | 8 | ' | ' | ' | 27 | 0 | ' | ' | ' | ' | 5 | ' | ' | ' | 22 | ' | ' | ' | 0 | ' | ' | ' | 74 | 0 | ' | ' | ' | ' | 0 | ' | ' | ' | 74 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Cost Incurred to Date | ' | ' | ' | $600 | ' | $30 | ' | ' | $284 | ' | $126 | ' | $160 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Supplemental_Balance_Sheet_Inf2
Supplemental Balance Sheet Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for doubtful accounts | ' | ' | ' | ' |
Beginning balance | $125 | $119 | $116 | $125 |
Net (credits) charges to expenses | ' | 5 | 14 | 11 |
Utilization of allowances | ' | -12 | -7 | -13 |
Ending balance | ' | 112 | 119 | 116 |
Trade accounts receivable, net | ' | ' | ' | ' |
Accounts receivable | ' | 1,419 | 1,336 | ' |
Less: allowance for doubtful accounts | ' | -81 | -88 | ' |
Less: allowance for sales returns | ' | -31 | -31 | ' |
Trade accounts receivable, net | ' | 1,307 | 1,217 | ' |
Inventories | ' | ' | ' | ' |
Finished goods | ' | 598 | 598 | ' |
Work-in-process | ' | 90 | 70 | ' |
Raw materials | ' | 209 | 216 | ' |
Inventories | ' | 897 | 884 | ' |
Property, plant and equipment, net | ' | ' | ' | ' |
Land | ' | 81 | 81 | ' |
Buildings and improvements | ' | 917 | 873 | ' |
Equipment, furniture and fixtures | ' | 2,461 | 2,348 | ' |
Capital in progress | ' | 211 | 218 | ' |
Property, plant and equipment | ' | 3,670 | 3,520 | ' |
Less: accumulated depreciation | ' | 2,124 | 1,956 | ' |
Property, plant and equipment, net | ' | 1,546 | 1,564 | 1,670 |
Accrued expenses | ' | ' | ' | ' |
Legal reserves | ' | 84 | 100 | ' |
Payroll and related liabilities | ' | 488 | 452 | ' |
Accrued contingent consideration | ' | 148 | 120 | ' |
Other | ' | 628 | 612 | ' |
Accrued expenses | ' | 1,348 | 1,284 | ' |
Other long-term liabilities | ' | ' | ' | ' |
Legal reserves | ' | 523 | 391 | ' |
Accrued income taxes | ' | 1,283 | 1,215 | ' |
Accrued contingent consideration | ' | 353 | 543 | ' |
Other Long-Term Liabilities | ' | 410 | 398 | ' |
Other long-term liabilities | ' | 2,569 | 2,547 | ' |
Supplemental Balance Sheet Information (Textuals) [Abstract] | ' | ' | ' | ' |
Bad debt expense reversed | 20 | ' | ' | ' |
Allowance for Doubtful Accounts [Member] | ' | ' | ' | ' |
Allowance for doubtful accounts | ' | ' | ' | ' |
Beginning balance | 83 | 88 | 81 | 83 |
Net (credits) charges to expenses | ' | 5 | 14 | 11 |
Utilization of allowances | ' | -12 | -7 | -13 |
Ending balance | ' | $81 | $88 | $81 |
Income_Taxes_Details_Rate_Tabl
Income Taxes (Details - Rate Table) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes, Tax Rate [Line Items] | ' | ' | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | -35.00% | -35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | -7.90% | -0.20% | 0.50% |
Effective Income Tax Rate Reconciliation, Tax Contingencies, State and Local | 0.00% | 0.00% | -1.20% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | -63.40% | -3.70% | -63.70% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense | 3.50% | 0.00% | -1.90% |
Effective Income Tax Rate Reconciliation, Tax Credits, Research | -12.20% | 0.00% | -3.40% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance | -12.00% | 0.30% | -2.90% |
Effective Income Tax Rate Reconciliation, Disposition of Business | 0.00% | 0.00% | 25.40% |
Effective Income Tax Rate Reconciliation, Uncertain Domestic Tax Positions | 7.00% | 0.80% | 5.60% |
Effective Income Tax Rate Reconciliation, Other Adjustments | -1.90% | 0.30% | -5.80% |
Reported tax rate | -46.00% | -1.00% | 31.30% |
Impairment of Goodwill [Member] | ' | ' | ' |
Income Taxes, Tax Rate [Line Items] | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses | 65.20% | 36.40% | 38.00% |
Impairment of Intangible Assets [Member] | ' | ' | ' |
Income Taxes, Tax Rate [Line Items] | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses | 10.70% | 0.10% | 5.70% |
Income_Taxes_Income_Taxes_Deta
Income Taxes Income Taxes (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income Taxes [Abstract] | ' | ' | ' | ' | ' |
Incremental tax liability asserted by IRS | ' | $1,162 | ' | ' | ' |
Unrecognized Tax Benefits | ' | 1,069 | 1,052 | 987 | 965 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | ' | 939 | 902 | ' | ' |
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | ' | 58 | 54 | 104 | ' |
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | ' | 45 | 43 | 8 | ' |
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | ' | -40 | -27 | -72 | ' |
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities | ' | -15 | -1 | -3 | ' |
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | ' | -31 | -4 | -15 | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | ' | 216 | 184 | ' | ' |
Deferred Tax Assets, Net, Current | ' | 288 | 433 | ' | ' |
Deferred Tax Assets, Net, Noncurrent | ' | 42 | 54 | ' | ' |
Deferred Tax Assets, Inventory | ' | 116 | 136 | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards | ' | 513 | 497 | ' | ' |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals | ' | 221 | 300 | ' | ' |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Restructuring Charges | ' | 17 | 13 | ' | ' |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Contingencies | ' | 198 | 48 | ' | ' |
Deferred Tax Assets, Derivative Instruments | ' | 0 | 0 | ' | ' |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Impairment Losses | ' | 15 | 13 | ' | ' |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | ' | 143 | 171 | ' | ' |
Federal benefit of uncertain tax positions | ' | 166 | 157 | ' | ' |
Deferred Tax Assets, Other | ' | 39 | 54 | ' | ' |
Deferred Tax Assets, Gross | ' | 1,428 | 1,389 | ' | ' |
Deferred Tax Assets, Valuation Allowance | ' | -299 | -316 | ' | ' |
Deferred tax assets, net of valuation allowance | ' | 1,129 | 1,073 | ' | ' |
Deferred Tax Assets, Net | ' | 330 | 487 | ' | ' |
Deferred Tax Liabilities, Current | ' | 2 | 11 | ' | ' |
Deferred Tax Liabilities, Noncurrent | ' | 1,402 | 1,713 | ' | ' |
Deferred Tax Liabilities, Property, Plant and Equipment | ' | 78 | 101 | ' | ' |
Deferred Tax Liabilities, Derivatives | ' | 80 | 21 | ' | ' |
Deferred Tax Liabilities, Goodwill and Intangible Assets, Intangible Assets | ' | 2,045 | 2,187 | ' | ' |
Deferred Tax Liabilities, Other | ' | 0 | 1 | ' | ' |
Deferred Tax Liabilities | ' | 1,404 | 1,724 | ' | ' |
Deferred Tax Liabilities | ' | 2,203 | 2,310 | ' | ' |
Deferred Tax Assets (Liabilities), Net | ' | 1,074 | 1,237 | ' | ' |
Current Federal Tax Expense (Benefit) | ' | 46 | 33 | 45 | ' |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | ' | -774 | -1,265 | -437 | ' |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | ' | 551 | -2,842 | 1,079 | ' |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | ' | -223 | -4,107 | 642 | ' |
Current State and Local Tax Expense (Benefit) | ' | -9 | 0 | 8 | ' |
Current Foreign Tax Expense (Benefit) | ' | 105 | 139 | 91 | ' |
Current Income Tax Expense (Benefit) | ' | 142 | 172 | 144 | ' |
Deferred Federal Income Tax Expense (Benefit) | ' | -212 | -204 | 86 | ' |
Deferred State and Local Income Tax Expense (Benefit) | ' | -17 | -7 | -8 | ' |
Deferred Foreign Income Tax Expense (Benefit) | ' | -15 | 0 | -21 | ' |
Deferred Income Tax Expense (Benefit) | ' | -244 | -211 | 57 | ' |
Income tax (benefit) expense | ' | -102 | -39 | 201 | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | ' | 313 | 341 | ' | ' |
Valuation Allowance, Amount | ' | 299 | 316 | ' | ' |
Other Comprehensive Income (Loss), Tax | ' | 72 | 43 | 1 | ' |
Deferred Tax Liabilities, Undistributed Foreign Earnings | ' | 11,902 | 11,041 | ' | ' |
Free Trade Zone Regime Tax Incentive | ' | 6 | 7 | 2 | ' |
Accrued Interest And Penalties Gross | ' | 402 | 364 | ' | ' |
Gross interest and penalties recognized in period | ' | 38 | ' | ' | ' |
Income Tax Examination, Penalties and Interest Expense | ' | 22 | 34 | 18 | ' |
Potential Reduction In Unrecognized Tax Benefits Over Next Twelve Months As Result Of Concluding Certain Matters | $27 | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | 66 Months Ended | ||||
Sep. 30, 2013 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Feb. 25, 2014 | |
patents | lawsuits | claims | |||||
claims | patents | ||||||
claims | |||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Product liability cases or claims related to mesh product assigned to one judge in state court in Massachusetts | ' | ' | ' | ' | ' | ' | 1,700 |
Accrual for legal matters that are probable and estimable | ' | ' | $607,000,000 | $491,000,000 | ' | $607,000,000 | ' |
Product liability lawsuits related to defibrillators or pacemakers | ' | ' | 30 | ' | ' | 30 | ' |
Suits Pending Against Guidant in Canada and Filed as Class Actions | ' | ' | 6 | ' | ' | 6 | ' |
Suits Pending Against Guidant in Canada, Pending Outcome of Two Lead Class Actions | ' | ' | 4 | ' | ' | 4 | ' |
Loss Contingency, Settlement Agreement, Consideration | ' | ' | 3,000,000 | ' | ' | 3,000,000 | ' |
Product liability cases or claims related to mesh product | ' | ' | ' | ' | ' | ' | 18,000 |
Loss Contingency, Number of Defendants | ' | ' | ' | ' | ' | 92 | ' |
Litigation-related charges | ' | ' | 221,000,000 | 192,000,000 | 48,000,000 | ' | ' |
Initial GI stent patents allegedly infringed (Pulnev and Hankh patents) | ' | ' | 3 | ' | ' | 3 | ' |
Additional Pulnev patents added to infringement suit | ' | ' | 6 | ' | ' | 6 | ' |
U.S. Patents Owned by Vascular Solutions | ' | ' | 3 | ' | ' | 3 | ' |
Patents (the Azizi patents) Owned by Kardiametrics | ' | ' | 2 | ' | ' | 2 | ' |
Individual Lawsuits Pending in Various State and Federal Jurisdictions Against Guidant | ' | ' | 10 | ' | ' | 10 | ' |
Minimum damages for Guidant breach of Merger Agreement | ' | ' | 5,500,000,000 | ' | ' | ' | ' |
U.S. patents (the Morris patents) owned by Wyeth and licensed to Cordis | ' | ' | 3 | ' | ' | 3 | ' |
U.S. patents (the Morris patents) owned by Wyeth and licensed to Cordis - Wyeth and Cordis subsequently withdrew their infringement claim | ' | ' | 1 | ' | ' | 1 | ' |
U.S. patents (the Morris patents) owned by Wyeth and licensed to Cordis - remaining two invalid | ' | ' | 2 | ' | ' | 2 | ' |
Settlement for lost profits related to the Jang patent litigation | ' | ' | ' | ' | 18,500,000 | ' | ' |
Settlement for royalties related to Jang patent | ' | ' | ' | ' | 1,000,000 | ' | ' |
Total damages awarded to BSC related to Jang patent | ' | 41,000,000 | ' | ' | ' | ' | ' |
Payments for Legal Settlements | 30,000,000 | ' | ' | ' | ' | ' | ' |
Legal Fees | $1,000,000 | ' | ' | ' | ' | ' | ' |
Putative class actions in the U.S., Mesh | ' | ' | ' | ' | ' | ' | 8 |
Product liability cases or claims in Canada, Mesh | ' | ' | ' | ' | ' | ' | 10 |
Putative class actions in Canada, Mesh | ' | ' | ' | ' | ' | ' | 3 |
patents (the Fischell patents) owned by Cordis | ' | ' | 3 | ' | ' | 3 | ' |
U.S. patents (the Addonizio and Pazienza patents) | ' | ' | 2 | ' | ' | 2 | ' |
Orbus patents | ' | ' | 2 | ' | ' | 2 | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Class of Stock [Line Items] | ' | ' | ' |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | ' |
Common Stock, Shares Authorized | 2,000,000,000 | 2,000,000,000 | ' |
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 | ' |
Treasury Stock, Shares | 238,000,000 | 187,000,000 | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $660,000,000 | ' | ' |
Stock Repurchase Program, Authorized Amount | 1,000,000,000 | ' | 1,000,000,000 |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | ' | ' | 37,000,000 |
Stock Repurchased During Period, Shares | 51,000,000 | 105,000,000 | 82,000,000 |
Payments for Repurchase of Common Stock | $500,000,000 | $600,000,000 | $492,000,000 |
Stock_Ownership_Plans_Details
Stock Ownership Plans (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 28, 2013 | Feb. 27, 2012 | Feb. 28, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-11 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
years | Low end of range [Member] | Low end of range [Member] | Low end of range [Member] | High end of range [Member] | High end of range [Member] | High end of range [Member] | 2011 LTIP Plan [Member] | Employee Stock [Member] | Cost of products sold [Member] | Cost of products sold [Member] | Cost of products sold [Member] | Selling General And Administrative [Member] | Selling General And Administrative [Member] | Selling General And Administrative [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Fair Value of Market Based Awards - 2012 | $8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Compensation Cost - Stock Options | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of market based awards - 2011 Awards | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Range of the target number of performance-based DSUs awarded | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | 150.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the Free Cash Flow (FCF) performance awards | 9,000,000 | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing stock price at year end | $12.02 | $5.73 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Target payout of Free Cash Flows (FCF) performance awards | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 3,833,000 | 3,979,000 | 3,830,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 37,339,000 | 36,593,000 | 33,576,000 | ' | ' | ' | 33,284,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $7 | $7 | $8 | ' | ' | ' | $9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 13,913,000 | 17,073,000 | 14,640,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock price on date of grant for market-based awards | ' | ' | ' | 7.39 | 6.28 | 7.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Measurement period - market based awards - 2012 Awards | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Measurement period - market based awards - 2011 Awards | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate - 2012 Awards | 0.34% | 0.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $8 | $6 | $7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | -10,307,000 | -10,158,000 | -10,344,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $8 | $9 | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | -2,860,000 | -3,898,000 | -4,004,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period, Weighted Average Grant Date Fair Value | $7 | $7 | $6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 44,892,000 | 54,881,000 | 60,921,000 | ' | ' | ' | 60,374,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,992,000 | 4,726,000 | 16,311,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | -7,221,000 | 0 | -18,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $8 | $0 | $7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | -4,760,000 | -10,766,000 | -15,746,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $21 | $15 | $12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 105,000,000 | 108,000,000 | 128,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | 15,000,000 | 25,000,000 | 79,000,000 | 69,000,000 | 74,000,000 | 18,000,000 | 24,000,000 | 29,000,000 |
Common Stock, Shares Authorized | 2,000,000,000 | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 146,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Capital Shares Reserved for Future Issuance | 242,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | -29,000,000 | -32,000,000 | -34,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation, net of tax benefit | 76,000,000 | 76,000,000 | 94,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
compensation expense, per share - basic | $0.06 | $0.05 | $0.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
compensation expense, per share - diluted | $0.06 | $0.05 | $0.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $7.44 | $6.23 | $7.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $2.84 | $2.60 | $3.07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 36.00% | 43.00% | 42.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '5 years 10 months 24 days | '5 years 10 months 24 days | '6 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.89% | 0.95% | 1.16% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 1.72% | 1.15% | 2.61% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 24,000,000 | 1,000,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock purchase plan, purchase price, range | ' | ' | ' | ' | ' | ' | ' | $5.01 | $4.82 | $4.81 | $7.96 | $5.16 | $6.22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Stock Ownership Plan (ESOP), Compensation Expense | 7,000,000 | 4,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $12 | $12 | $13 | ' | ' | ' | $14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '5 years 2 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 137,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 32,927,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | '4 years 3 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 77,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options expected to vest | 11,433,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options expected to vest, weighted average exercise price | $7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options expected to vest, weighted average remaining contractual life | '7 years 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expected to Vest, Outstanding, Aggregate Intrinsic Value | 58,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 44,360,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | '5 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 135,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | 80,000,000 | 60,000,000 | 71,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate - 2011 Awards | ' | ' | 1.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of employees total compensation eligible for GESOP purchase | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Global Employee Stock Purchase Plan - Exercise Amount equivalent to 85% of Fair Market Value of Common Stock at beginning or end of each offering period (whichever is less) | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Compensation Cost - Non-vested stock awards | 166,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Compensation Cost | $183,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
weighted average remaining vesting period | '1 year 4 months 25 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
annualweightedaverageforfeiturerate | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Capital Shares Reserved for Future Issuance - Not Issuable | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonqualified Options Vesting Period | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonqualified Options Contractual Life | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
voting power of all classes of stock | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of the fair market value of our common stock on the date of grant | 110.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Qualified options expire over a period not to exceed | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Qualified options exercise price | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Qualified options vesting period | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted_Average_Shares_Outsta2
Weighted Average Shares Outstanding (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share (Textuals) [Abstract] | ' | ' | ' |
Excluded common stock equivalents | 19 | 8 | ' |
Weighted average shares outstanding | ' | ' | ' |
Weighted average shares outstanding - basic | 1,341.20 | 1,406.70 | 1,509.30 |
Net effect of common stock equivalents | 0 | 0 | 9.7 |
Weighted average shares outstanding - assuming dilution | 1,341.20 | 1,406.70 | 1,519 |
Stock Options [Member] | ' | ' | ' |
Earnings Per Share (Textuals) [Abstract] | ' | ' | ' |
Excluded common stock equivalents | 16 | 59 | 62 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
reportablesegments | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from core businesses | $7,085 | $7,127 | $7,481 |
Property, Plant and Equipment, Net | 1,546 | 1,564 | 1,670 |
Total assets allocated to reportable segment | 3,914 | 3,852 | ' |
Net sales | ' | ' | ' |
Net sales allocated to reportable segments | 7,241 | 7,127 | 7,359 |
Segment Reporting, Sales from Divested Businesses | 58 | 122 | 140 |
Impact of foreign currency fluctuations | -156 | 0 | 123 |
Net sales | 7,143 | 7,249 | 7,622 |
Revenue by country at actual foreign currency rates | 7,085 | 7,127 | 7,481 |
Segment Reporting, Sales from Divested Businesses | 58 | 122 | 141 |
Operating Income Allocated to Reportable Segments | 1,666 | 1,618 | 1,714 |
Amortization expense | -410 | -395 | -421 |
Operating income allocated to reportable segments | 120 | -3,868 | 904 |
(Loss) income before income taxes | -223 | -4,107 | 642 |
Depreciation | 279 | 288 | 296 |
Goodwill | 5,693 | 5,973 | 9,761 |
Intangible Assets, Net (Excluding Goodwill) | 5,950 | 6,289 | 6,473 |
Other assets unallocated to segments | 1,014 | 1,040 | ' |
TOTAL ASSETS | 16,571 | 17,154 | ' |
Long-Lived Assets | 13,189 | 13,826 | 17,904 |
Segment Reporting (Textuals) [Abstract] | ' | ' | ' |
Number of reportable segments | 3 | ' | ' |
United States [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Net | 998 | 1,065 | 1,141 |
Net sales | ' | ' | ' |
Revenue by country at actual foreign currency rates | 3,743 | 3,756 | 4,010 |
Japan [Member] | ' | ' | ' |
Net sales | ' | ' | ' |
Revenue by country at actual foreign currency rates | 744 | 931 | 951 |
IRELAND | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Net | 240 | 252 | 231 |
Other countries [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Net | 308 | 247 | 298 |
Net sales | ' | ' | ' |
Revenue by country at actual foreign currency rates | 2,598 | 2,440 | 2,520 |
Global Interventional Cardiology (IC) Reporting Unit [Member] | ' | ' | ' |
Net sales | ' | ' | ' |
Net sales allocated to reportable segments | 2,055 | 2,179 | 2,444 |
Corporate expenses and currency exchange [Member] | ' | ' | ' |
Net sales | ' | ' | ' |
Operating Income Unallocated to Segment | 314 | 258 | 254 |
Depreciation | -4 | 0 | 2 |
Special Charges [Member] | ' | ' | ' |
Net sales | ' | ' | ' |
Operating Income Unallocated to Segment | 822 | 4,833 | 135 |
Amortization expense | 410 | 395 | 421 |
Other expense, net | -343 | -239 | -262 |
Global Peripheral Interventions (PI) Reporting Unit [Member] | ' | ' | ' |
Net sales | ' | ' | ' |
Net sales allocated to reportable segments | 812 | 769 | 713 |
Cardiovascular [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total assets allocated to reportable segment | 1,545 | 1,535 | ' |
Depreciation allocated to reportable segments | 111 | 106 | 116 |
Net sales | ' | ' | ' |
Net sales allocated to reportable segments | 2,867 | 2,948 | 3,157 |
Operating Income Allocated to Reportable Segments | 710 | 739 | 829 |
Global CRM Reporting Unit [Member] | ' | ' | ' |
Net sales | ' | ' | ' |
Net sales allocated to reportable segments | 1,919 | 1,927 | 2,072 |
Global Electrophysiology (EP) Reporting Unit [Member] | ' | ' | ' |
Net sales | ' | ' | ' |
Net sales allocated to reportable segments | 157 | 147 | 145 |
Rhythm Management [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total assets allocated to reportable segment | 1,343 | 1,350 | ' |
Depreciation allocated to reportable segments | 99 | 108 | 105 |
Net sales | ' | ' | ' |
Net sales allocated to reportable segments | 2,076 | 2,074 | 2,217 |
Operating Income Allocated to Reportable Segments | 232 | 242 | 320 |
Global Endoscopy (Endo) Reporting Unit [Member] | ' | ' | ' |
Net sales | ' | ' | ' |
Net sales allocated to reportable segments | 1,331 | 1,242 | 1,158 |
Global Urology (Uro) Reporting Unit [Member] | ' | ' | ' |
Net sales | ' | ' | ' |
Net sales allocated to reportable segments | 513 | 496 | 491 |
Global Neuromodulation (NM) Reporting Unit [Member] | ' | ' | ' |
Net sales | ' | ' | ' |
Net sales allocated to reportable segments | 454 | 367 | 336 |
MedSurg [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total assets allocated to reportable segment | 1,026 | 967 | ' |
Depreciation allocated to reportable segments | 73 | 74 | 73 |
Net sales | ' | ' | ' |
Net sales allocated to reportable segments | 2,298 | 2,105 | 1,985 |
Operating Income Allocated to Reportable Segments | 724 | 637 | 565 |
Total allocated to reportable segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation allocated to reportable segments | 283 | 288 | 294 |
Interventional Cardiology [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from core businesses | 1,997 | 2,179 | 2,495 |
Cardiac Rhythm Management [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from core businesses | 1,886 | 1,908 | 2,087 |
Endoscopy [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from core businesses | 1,300 | 1,252 | 1,187 |
Peripheral Interventions [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from core businesses | 789 | 774 | 731 |
Urology / Women's Health [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from core businesses | 505 | 500 | 498 |
Neuromodulation [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from core businesses | 453 | 367 | 336 |
Electrophysiology [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue from core businesses | $155 | $147 | $147 |
Changes_in_Other_Comprehensive2
Changes in Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in Other Comprehensive Income [Abstract] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | ($16) | ($26) | ($58) |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges and Treasury Locks, Effect Net of Tax | 141 | 34 | -48 |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 19 | 41 | -32 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 106 | -33 | -138 |
Cumulative Translation Adjustment, Net of Tax, Period Increase (Decrease) | 10 | 32 | ' |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Before Reclassifications, Net of Tax | 130 | 59 | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | 31 | 1 | ' |
Other Comprehensive Income (Loss), Amortization, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost Recognized in Net Periodic Pension Cost, Net of Tax | -9 | -10 | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 22 | -9 | -18 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 171 | 92 | ' |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Reclassified from OCI, Net of Tax | -23 | 23 | ' |
Other Comprehensive Income (Loss), Reclassifications out of OCI, Net of Tax | -32 | 13 | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 10 | 32 | -8 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 107 | 82 | ' |
Other Comprehensive Income (Loss), Net of Tax | 139 | 105 | -9 |
Other Comprehensive Income (Loss), Tax | 77 | 36 | ' |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising Reclassed from OCI, Tax | 14 | 14 | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | 15 | 1 | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized (Gain) Loss Arising During Period, Tax | $6 | $8 | ' |
Schedule_II_Details
Schedule II (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | ' |
Valuation Allowances and Reserves, Balance | $112 | $119 | $116 | $125 |
Net (credits) charges to expenses | 5 | 14 | 11 | ' |
Valuation Allowances and Reserves, Deductions | 12 | 7 | 13 | ' |
Valuation Allowances and Reserves, Charged to Other Accounts | $0 | ($4) | ($7) | ' |