Edwards Lifesciences CorpEW
Edwards Lifesciences Corp Segments Disclosure
21. SEGMENT INFORMATION
Edwards Lifesciences conducts operations worldwide and is managed in the following four reportable segments: United States, Europe, Japan, and Rest of World. All regions sell products that are used to treat advanced cardiovascular disease. The Company's operating segments are organized primarily based on economic characteristics as well as other characteristics, including types of customers, nature of the regulatory environment, and product offerings.
The Company's geographic segments are reported based on the financial information provided to the Chief Operating Decision Maker (“CODM”), which is the Company's Chief Executive Officer. The CODM evaluates the performance of the Company's reportable segments based on segment net sales and segment operating income. The CODM considers budget or forecast-to-actual results variances for segment operating income on a periodic basis for evaluating the performance of each segment and making decisions about allocating capital and other resources to each segment.
Segment net sales are based on actual foreign exchange rates. Segment expenses and segment operating income are based on internally derived foreign exchange rates and do not include inter-segment profits. Because of the interdependence of the reportable segments, the operating profit as presented may not be representative of the geographical distribution that would occur if the segments were not interdependent. Net sales by geographic area are based on the location of the customer. There were no customers that represented 10% or more of the Company's total net sales.
Certain items are maintained at the corporate level and are not allocated to the segments. The non-allocated items include corporate research and development expenses, manufacturing variances, corporate headquarters costs, net interest income, global marketing expenses, impairment charges, stock-based compensation, foreign currency hedging activities, certain litigation costs, changes in the fair value of contingent consideration liabilities, most of the Company's amortization, and a portion of the Company's depreciation expense. The CODM does not receive information on total assets by reportable segment.
The table below presents information about Edwards Lifesciences' reportable segments (in millions):
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Segment Net Sales | |||||||||||||||||
| United States | $ | 3,543.1 | $ | 3,206.0 | $ | 2,947.9 | |||||||||||
| Europe | 1,517.5 | 1,321.7 | 1,180.2 | ||||||||||||||
| Japan | 354.7 | 339.8 | 350.8 | ||||||||||||||
| Rest of World | 652.3 | 572.0 | 531.1 | ||||||||||||||
| Total segment net sales | $ | 6,067.6 | $ | 5,439.5 | $ | 5,010.0 | |||||||||||
| Cost of Sales | |||||||||||||||||
| United States | $ | 620.3 | $ | 546.6 | $ | 505.2 | |||||||||||
| Europe | 340.1 | 299.1 | 268.5 | ||||||||||||||
| Japan | 52.4 | 48.1 | 46.6 | ||||||||||||||
| Rest of World | 170.6 | 158.1 | 136.2 | ||||||||||||||
| Total segment cost of sales | $ | 1,183.4 | $ | 1,051.9 | $ | 956.5 | |||||||||||
| Selling, general, and administrative expenses | |||||||||||||||||
| United States | $ | 575.3 | $ | 498.0 | $ | 432.8 | |||||||||||
| Europe | 315.0 | 282.6 | 260.6 | ||||||||||||||
| Japan | 78.5 | 85.1 | 70.1 | ||||||||||||||
| Rest of World | 209.6 | 181.4 | 166.4 | ||||||||||||||
| Total segment selling, general, and administrative expenses | $ | 1,178.4 | $ | 1,047.1 | $ | 929.9 | |||||||||||
| Other Segment Items | |||||||||||||||||
| United States | $ | 2.5 | $ | 2.4 | $ | 2.1 | |||||||||||
| Europe | 66.2 | 14.9 | (4.0) | ||||||||||||||
| Japan | (10.0) | (6.8) | 21.3 | ||||||||||||||
| Rest of World | (26.4) | (10.5) | (0.5) | ||||||||||||||
Total other segment items (a) | $ | 32.3 | $ | — | $ | 18.9 | |||||||||||
| Segment Operating Income | |||||||||||||||||
| United States | $ | 2,345.0 | $ | 2,159.0 | $ | 2,007.8 | |||||||||||
| Europe | 796.2 | 725.1 | 655.1 | ||||||||||||||
| Japan | 233.8 | 213.4 | 212.8 | ||||||||||||||
| Rest of World | 298.5 | 243.0 | 229.0 | ||||||||||||||
| Total segment operating income | $ | 3,673.5 | $ | 3,340.5 | $ | 3,104.7 | |||||||||||
(a) Other segment items include research and development expenses and foreign currency.
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Pre-tax Income Reconciliation | |||||||||||||||||
| Segment operating income | $ | 3,673.5 | $ | 3,340.5 | $ | 3,104.7 | |||||||||||
| Unallocated amounts: | |||||||||||||||||
| Corporate items | (2,028.5) | (1,886.8) | (1,684.4) | ||||||||||||||
Restructuring charges, separation costs, and other | (19.1) | (61.0) | — | ||||||||||||||
Intangible assets impairment charges | (40.0) | — | — | ||||||||||||||
Intellectual property agreement and certain litigation expenses | (325.4) | (40.4) | (203.5) | ||||||||||||||
| Change in fair value of contingent consideration liabilities | 12.5 | — | 26.2 | ||||||||||||||
| Foreign currency | (8.8) | 26.4 | 65.9 | ||||||||||||||
| Consolidated operating income | $ | 1,264.2 | $ | 1,378.7 | $ | 1,308.9 | |||||||||||
| Non-operating income | 8.7 | 169.4 | 63.5 | ||||||||||||||
| Consolidated pre-tax income | $ | 1,272.9 | $ | 1,548.1 | $ | 1,372.4 | |||||||||||
Enterprise-Wide Information
Enterprise-wide information is based on actual foreign exchange rates used in the Company's consolidated financial statements. See above for United States net sales for the years ended December 31, 2025, 2024, and 2023. Sales within any other individual country were less than 10 percent of the Company's consolidated net sales in each of those years.
| As of or for the Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
(in millions) | |||||||||||||||||
| Net Sales by Major Product Group | |||||||||||||||||
| Transcatheter Aortic Valve Replacement | $ | 4,487.7 | $ | 4,106.1 | $ | 3,879.8 | |||||||||||
| Transcatheter Mitral and Tricuspid Therapies | 550.6 | 352.1 | 197.6 | ||||||||||||||
| Surgical Structural Heart | 1,029.3 | 981.3 | 932.6 | ||||||||||||||
| $ | 6,067.6 | $ | 5,439.5 | $ | 5,010.0 | ||||||||||||
| Long-lived Tangible Assets by Geographic Region | |||||||||||||||||
| United States | $ | 1,259.7 | $ | 1,249.6 | $ | 1,186.9 | |||||||||||
| Other countries | 654.9 | 534.6 | 488.5 | ||||||||||||||
| $ | 1,914.6 | $ | 1,784.2 | $ | 1,675.4 | ||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 12, 2024 | |
| 2022 | Feb 13, 2023 | |
| 2021 | Feb 14, 2022 | |
| 2020 | Feb 12, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 19, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.