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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Medtronic PLC | NYSE:MDT | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.3638 | -0.44% | 81.5362 | 82.02 | 81.37 | 81.84 | 4,175,666 | 01:00:00 |
|
|
x
|
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 27, 2017
|
MEDTRONIC PUBLIC LIMITED COMPANY
|
|
(Exact name of registrant as specified in its charter)
|
|
|
|
Ireland
|
98-1183488
|
(State of incorporation)
|
(I.R.S. Employer
Identification No.)
|
Large accelerated filer x
|
|
Accelerated filer
o
|
|
Emerging growth company
o
|
Non-accelerated filer
o
|
|
Smaller Reporting Company
o
|
|
|
|
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Item
|
|
Description
|
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Page
|
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1.
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2.
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3.
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4.
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1.
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2.
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6.
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Three months ended
|
|
Six months ended
|
||||||||||||
(in millions, except per share data)
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||||||
Net sales
|
$
|
7,050
|
|
|
$
|
7,345
|
|
|
$
|
14,440
|
|
|
$
|
14,511
|
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of products sold
|
2,120
|
|
|
2,326
|
|
|
4,469
|
|
|
4,587
|
|
||||
Research and development expense
|
555
|
|
|
554
|
|
|
1,103
|
|
|
1,110
|
|
||||
Selling, general, and administrative expense
|
2,438
|
|
|
2,416
|
|
|
4,923
|
|
|
4,844
|
|
||||
Amortization of intangible assets
|
460
|
|
|
500
|
|
|
914
|
|
|
987
|
|
||||
Restructuring charges, net
|
8
|
|
|
47
|
|
|
16
|
|
|
141
|
|
||||
Acquisition-related items
|
7
|
|
|
28
|
|
|
51
|
|
|
80
|
|
||||
Certain litigation charges
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
||||
Divestiture-related items
|
67
|
|
|
—
|
|
|
114
|
|
|
—
|
|
||||
Gain on sale of businesses
|
(697
|
)
|
|
—
|
|
|
(697
|
)
|
|
—
|
|
||||
Special charge
|
80
|
|
|
—
|
|
|
80
|
|
|
—
|
|
||||
Other expense, net
|
111
|
|
|
89
|
|
|
177
|
|
|
128
|
|
||||
Operating profit
|
1,901
|
|
|
1,385
|
|
|
3,290
|
|
|
2,552
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest income
|
(100
|
)
|
|
(91
|
)
|
|
(192
|
)
|
|
(184
|
)
|
||||
Interest expense
|
273
|
|
|
264
|
|
|
559
|
|
|
536
|
|
||||
Interest expense, net
|
173
|
|
|
173
|
|
|
367
|
|
|
352
|
|
||||
Income before income taxes
|
1,728
|
|
|
1,212
|
|
|
2,923
|
|
|
2,200
|
|
||||
Income tax (benefit) provision
|
(285
|
)
|
|
101
|
|
|
(99
|
)
|
|
160
|
|
||||
Net income
|
2,013
|
|
|
1,111
|
|
|
3,022
|
|
|
2,040
|
|
||||
Net loss attributable to noncontrolling interests
|
4
|
|
|
4
|
|
|
11
|
|
|
4
|
|
||||
Net income attributable to Medtronic
|
$
|
2,017
|
|
|
$
|
1,115
|
|
|
$
|
3,033
|
|
|
$
|
2,044
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
1.49
|
|
|
$
|
0.81
|
|
|
$
|
2.23
|
|
|
$
|
1.47
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share
|
$
|
1.48
|
|
|
$
|
0.80
|
|
|
$
|
2.21
|
|
|
$
|
1.46
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average shares outstanding
|
1,355.1
|
|
|
1,380.0
|
|
|
1,358.5
|
|
|
1,386.5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average shares outstanding
|
1,365.8
|
|
|
1,392.5
|
|
|
1,370.8
|
|
|
1,400.2
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per ordinary share
|
$
|
0.46
|
|
|
$
|
0.43
|
|
|
$
|
0.92
|
|
|
$
|
0.86
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||||||
Net income
|
$
|
2,013
|
|
|
$
|
1,111
|
|
|
$
|
3,022
|
|
|
$
|
2,040
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized gain (loss) on available-for-sale securities
|
25
|
|
|
(40
|
)
|
|
55
|
|
|
75
|
|
||||
Translation adjustment
|
(203
|
)
|
|
(336
|
)
|
|
628
|
|
|
(686
|
)
|
||||
Net change in retirement obligations
|
15
|
|
|
19
|
|
|
14
|
|
|
44
|
|
||||
Unrealized gain (loss) on derivatives
|
27
|
|
|
53
|
|
|
(144
|
)
|
|
107
|
|
||||
Other comprehensive (loss) income
|
(136
|
)
|
|
(304
|
)
|
|
553
|
|
|
(460
|
)
|
||||
Comprehensive income including noncontrolling interests
|
1,877
|
|
|
807
|
|
|
3,575
|
|
|
1,580
|
|
||||
Comprehensive loss attributable to noncontrolling interests
|
4
|
|
|
4
|
|
|
11
|
|
|
4
|
|
||||
Comprehensive income attributable to Medtronic
|
$
|
1,881
|
|
|
$
|
811
|
|
|
$
|
3,586
|
|
|
$
|
1,584
|
|
(in millions)
|
October 27, 2017
|
|
April 28, 2017
|
||||
ASSETS
|
|
|
|
|
|
||
|
|
|
|
||||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
5,529
|
|
|
$
|
4,967
|
|
Investments
|
7,997
|
|
|
8,741
|
|
||
Accounts receivable, less allowances of $168 and $155, respectively
|
5,752
|
|
|
5,591
|
|
||
Inventories, net
|
3,638
|
|
|
3,338
|
|
||
Other current assets
|
2,246
|
|
|
1,865
|
|
||
Current assets held for sale
|
—
|
|
|
371
|
|
||
Total current assets
|
25,162
|
|
|
24,873
|
|
||
|
|
|
|
||||
Property, plant, and equipment
|
10,115
|
|
|
9,691
|
|
||
Accumulated depreciation
|
(5,674
|
)
|
|
(5,330
|
)
|
||
Property, plant, and equipment, net
|
4,441
|
|
|
4,361
|
|
||
Goodwill
|
39,077
|
|
|
38,515
|
|
||
Other intangible assets, net
|
22,625
|
|
|
23,407
|
|
||
Tax assets
|
1,749
|
|
|
1,509
|
|
||
Other assets
|
1,404
|
|
|
1,232
|
|
||
Noncurrent assets held for sale
|
—
|
|
|
5,919
|
|
||
Total assets
|
$
|
94,458
|
|
|
$
|
99,816
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
||
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
|
||
Current debt obligations
|
$
|
3,131
|
|
|
$
|
7,520
|
|
Accounts payable
|
1,718
|
|
|
1,731
|
|
||
Accrued compensation
|
1,502
|
|
|
1,860
|
|
||
Accrued income taxes
|
872
|
|
|
633
|
|
||
Other accrued expenses
|
3,273
|
|
|
2,442
|
|
||
Current liabilities held for sale
|
—
|
|
|
34
|
|
||
Total current liabilities
|
10,496
|
|
|
14,220
|
|
||
|
|
|
|
||||
Long-term debt
|
25,941
|
|
|
25,921
|
|
||
Accrued compensation and retirement benefits
|
1,475
|
|
|
1,641
|
|
||
Accrued income taxes
|
2,194
|
|
|
2,405
|
|
||
Deferred tax liabilities
|
1,841
|
|
|
2,978
|
|
||
Other liabilities
|
933
|
|
|
1,515
|
|
||
Noncurrent liabilities held for sale
|
—
|
|
|
720
|
|
||
Total liabilities
|
42,880
|
|
|
49,400
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 17)
|
|
|
|
||||
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
|
|
||
Ordinary shares— par value $0.0001, 2.6 billion shares authorized, 1,353,591,988 and 1,369,424,818 shares issued and outstanding, respectively
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
28,091
|
|
|
29,551
|
|
||
Retained earnings
|
25,438
|
|
|
23,356
|
|
||
Accumulated other comprehensive loss
|
(2,060
|
)
|
|
(2,613
|
)
|
||
Total shareholders’ equity
|
51,469
|
|
|
50,294
|
|
||
Noncontrolling interests
|
109
|
|
|
122
|
|
||
Total equity
|
51,578
|
|
|
50,416
|
|
||
Total liabilities and equity
|
$
|
94,458
|
|
|
$
|
99,816
|
|
|
Six months ended
|
||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
||||
Operating Activities:
|
|
|
|
|
|
||
Net income
|
$
|
3,022
|
|
|
$
|
2,040
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
1,314
|
|
|
1,469
|
|
||
Amortization of debt premium, discount, and issuance costs
|
(20
|
)
|
|
14
|
|
||
Acquisition-related items
|
(25
|
)
|
|
(47
|
)
|
||
Provision for doubtful accounts
|
20
|
|
|
18
|
|
||
Deferred income taxes
|
(830
|
)
|
|
(50
|
)
|
||
Stock-based compensation
|
198
|
|
|
190
|
|
||
Gain on sale of businesses
|
(697
|
)
|
|
—
|
|
||
Other, net
|
4
|
|
|
(105
|
)
|
||
Change in operating assets and liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
||
Accounts receivable, net
|
(68
|
)
|
|
(89
|
)
|
||
Inventories, net
|
(273
|
)
|
|
(187
|
)
|
||
Accounts payable and accrued liabilities
|
(307
|
)
|
|
(306
|
)
|
||
Other operating assets and liabilities
|
(694
|
)
|
|
75
|
|
||
Net cash provided by operating activities
|
1,644
|
|
|
3,022
|
|
||
Investing Activities:
|
|
|
|
|
|
||
Acquisitions, net of cash acquired
|
(76
|
)
|
|
(1,306
|
)
|
||
Proceeds from sale of businesses
|
6,058
|
|
|
—
|
|
||
Additions to property, plant, and equipment
|
(524
|
)
|
|
(598
|
)
|
||
Purchases of investments
|
(1,685
|
)
|
|
(2,110
|
)
|
||
Sales and maturities of investments
|
2,354
|
|
|
3,625
|
|
||
Other investing activities, net
|
(2
|
)
|
|
32
|
|
||
Net cash provided by (used in) investing activities
|
6,125
|
|
|
(357
|
)
|
||
Financing Activities:
|
|
|
|
|
|
||
Acquisition-related contingent consideration
|
(39
|
)
|
|
(36
|
)
|
||
Change in current debt obligations, net
|
(190
|
)
|
|
1,154
|
|
||
Proceeds from short-term borrowings (maturities greater than 90 days)
|
—
|
|
|
4
|
|
||
Issuance of long-term debt
|
20
|
|
|
131
|
|
||
Payments on long-term debt
|
(4,161
|
)
|
|
(252
|
)
|
||
Dividends to shareholders
|
(1,247
|
)
|
|
(1,192
|
)
|
||
Issuance of ordinary shares
|
230
|
|
|
260
|
|
||
Repurchase of ordinary shares
|
(1,888
|
)
|
|
(2,794
|
)
|
||
Other financing activities
|
(2
|
)
|
|
74
|
|
||
Net cash used in financing activities
|
(7,277
|
)
|
|
(2,651
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
70
|
|
|
64
|
|
||
Net change in cash and cash equivalents
|
562
|
|
|
78
|
|
||
Cash and cash equivalents at beginning of period
|
4,967
|
|
|
2,876
|
|
||
Cash and cash equivalents at end of period
|
$
|
5,529
|
|
|
$
|
2,954
|
|
Supplemental Cash Flow Information
|
|
|
|
|
|
||
Cash paid for:
|
|
|
|
|
|
||
Income taxes
|
$
|
674
|
|
|
$
|
258
|
|
Interest
|
587
|
|
|
559
|
|
(in millions)
|
HeartWare International, Inc.
|
|
All Other
|
||||
Other current assets
|
$
|
351
|
|
|
$
|
2
|
|
Property, plant, and equipment
|
14
|
|
|
6
|
|
||
Other intangible assets
|
625
|
|
|
68
|
|
||
Goodwill
|
481
|
|
|
15
|
|
||
Other assets
|
84
|
|
|
—
|
|
||
Total assets acquired
|
1,555
|
|
|
91
|
|
||
|
|
|
|
||||
Current liabilities
|
143
|
|
|
1
|
|
||
Deferred tax liabilities
|
6
|
|
|
—
|
|
||
Long-term debt
|
245
|
|
|
—
|
|
||
Other liabilities
|
89
|
|
|
—
|
|
||
Total liabilities assumed
|
483
|
|
|
1
|
|
||
Net assets acquired
|
$
|
1,072
|
|
|
$
|
90
|
|
|
|
Fair Value at
|
|
|
|
|
|
|
(in millions)
|
|
October 27, 2017
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
|
|
|
|
|
|
|
Discount rate
|
|
11% - 32.5%
|
Revenue-based payments
|
|
$85
|
|
Discounted cash flow
|
|
Probability of payment
|
|
30% - 100%
|
|
|
|
|
|
|
Projected fiscal year of payment
|
|
2018 - 2026
|
|
|
|
|
|
|
Discount rate
|
|
0.7% - 5.5%
|
Product development and other milestone-based payments
|
|
$105
|
|
Discounted cash flow
|
|
Probability of payment
|
|
50% - 100%
|
|
|
|
|
|
|
Projected fiscal year of payment
|
|
2018 - 2025
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||||||
Beginning Balance
|
$
|
242
|
|
|
$
|
379
|
|
|
$
|
246
|
|
|
$
|
377
|
|
Purchase price contingent consideration
|
15
|
|
|
11
|
|
|
15
|
|
|
32
|
|
||||
Payments
|
(43
|
)
|
|
(25
|
)
|
|
(46
|
)
|
|
(39
|
)
|
||||
Change in fair value
|
(24
|
)
|
|
(80
|
)
|
|
(25
|
)
|
|
(85
|
)
|
||||
Ending Balance
|
$
|
190
|
|
|
$
|
285
|
|
|
$
|
190
|
|
|
$
|
285
|
|
(in millions)
|
|
April 28, 2017
|
||
Inventories, net
|
|
$
|
371
|
|
Property, plant, and equipment, net
|
|
689
|
|
|
Goodwill
|
|
2,910
|
|
|
Other intangible assets, net
|
|
2,320
|
|
|
Total assets held for sale
|
|
$
|
6,290
|
|
|
|
|
||
Other accrued expenses
|
|
$
|
34
|
|
Accrued compensation and retirement benefits
|
|
12
|
|
|
Deferred tax liabilities
|
|
707
|
|
|
Other liabilities
|
|
1
|
|
|
Total liabilities held for sale
|
|
$
|
754
|
|
(in millions)
|
Employee Termination Costs
|
|
Other Costs
|
|
Total
|
||||||
April 28, 2017
|
$
|
261
|
|
|
$
|
30
|
|
|
$
|
291
|
|
Charges
|
25
|
|
|
20
|
|
|
45
|
|
|||
Cash payments
|
(85
|
)
|
|
(26
|
)
|
|
(111
|
)
|
|||
Accrual adjustments
|
(14
|
)
|
|
1
|
|
|
(13
|
)
|
|||
October 27, 2017
|
$
|
187
|
|
|
$
|
25
|
|
|
$
|
212
|
|
|
Valuation
|
|
Balance Sheet Classification
|
||||||||||||||||||||
(in millions)
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Investments
|
|
Other Assets
|
||||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Level 1:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and agency securities
|
$
|
613
|
|
|
$
|
1
|
|
|
$
|
(8
|
)
|
|
$
|
606
|
|
|
$
|
606
|
|
|
$
|
—
|
|
Marketable equity securities
|
84
|
|
|
115
|
|
|
(1
|
)
|
|
198
|
|
|
—
|
|
|
198
|
|
||||||
Total Level 1
|
697
|
|
|
116
|
|
|
(9
|
)
|
|
804
|
|
|
606
|
|
|
198
|
|
||||||
Level 2:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate debt securities
|
4,165
|
|
|
64
|
|
|
(16
|
)
|
|
4,213
|
|
|
4,213
|
|
|
—
|
|
||||||
U.S. government and agency securities
|
870
|
|
|
—
|
|
|
(12
|
)
|
|
858
|
|
|
858
|
|
|
—
|
|
||||||
Mortgage-backed securities
|
768
|
|
|
7
|
|
|
(19
|
)
|
|
756
|
|
|
756
|
|
|
—
|
|
||||||
Foreign government and agency securities
|
52
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
52
|
|
|
—
|
|
||||||
Other asset-backed securities
|
341
|
|
|
1
|
|
|
(1
|
)
|
|
341
|
|
|
341
|
|
|
—
|
|
||||||
Debt funds
|
939
|
|
|
6
|
|
|
(168
|
)
|
|
777
|
|
|
777
|
|
|
—
|
|
||||||
Total Level 2
|
7,135
|
|
|
78
|
|
|
(216
|
)
|
|
6,997
|
|
|
6,997
|
|
|
—
|
|
||||||
Level 3:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate debt securities
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Auction rate securities
|
47
|
|
|
—
|
|
|
(3
|
)
|
|
44
|
|
|
—
|
|
|
44
|
|
||||||
Total Level 3
|
48
|
|
|
—
|
|
|
(3
|
)
|
|
45
|
|
|
—
|
|
|
45
|
|
||||||
Investments measured at net asset value
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt Funds
|
400
|
|
|
—
|
|
|
(6
|
)
|
|
394
|
|
|
394
|
|
|
—
|
|
||||||
Total available-for-sale securities
|
8,280
|
|
|
194
|
|
|
(234
|
)
|
|
8,240
|
|
|
7,997
|
|
|
243
|
|
||||||
Cost method, equity method, and other investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Level 3:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost method, equity method, and other investments
|
626
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
626
|
|
||||||
Total Level 3
|
626
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
626
|
|
||||||
Total cost method, equity method, and other investments
|
626
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
626
|
|
||||||
Total investments
|
$
|
8,906
|
|
|
$
|
194
|
|
|
$
|
(234
|
)
|
|
$
|
8,240
|
|
|
$
|
7,997
|
|
|
$
|
869
|
|
|
Valuation
|
|
Balance Sheet Classification
|
||||||||||||||||||||
(in millions)
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Investments
|
|
Other Assets
|
||||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Level 1:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and agency securities
|
$
|
613
|
|
|
$
|
2
|
|
|
$
|
(5
|
)
|
|
$
|
610
|
|
|
$
|
610
|
|
|
$
|
—
|
|
Marketable equity securities
|
58
|
|
|
49
|
|
|
(4
|
)
|
|
103
|
|
|
—
|
|
|
103
|
|
||||||
Total Level 1
|
671
|
|
|
51
|
|
|
(9
|
)
|
|
713
|
|
|
610
|
|
|
103
|
|
||||||
Level 2:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate debt securities
|
4,643
|
|
|
62
|
|
|
(23
|
)
|
|
4,682
|
|
|
4,682
|
|
|
—
|
|
||||||
U.S. government and agency securities
|
860
|
|
|
—
|
|
|
(10
|
)
|
|
850
|
|
|
850
|
|
|
—
|
|
||||||
Mortgage-backed securities
|
766
|
|
|
9
|
|
|
(16
|
)
|
|
759
|
|
|
759
|
|
|
—
|
|
||||||
Foreign government and agency securities
|
49
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
49
|
|
|
—
|
|
||||||
Other asset-backed securities
|
228
|
|
|
1
|
|
|
(1
|
)
|
|
228
|
|
|
228
|
|
|
—
|
|
||||||
Debt funds
|
1,246
|
|
|
4
|
|
|
(178
|
)
|
|
1,072
|
|
|
1,072
|
|
|
—
|
|
||||||
Total Level 2
|
7,792
|
|
|
76
|
|
|
(228
|
)
|
|
7,640
|
|
|
7,640
|
|
|
—
|
|
||||||
Level 3:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate debt securities
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Auction rate securities
|
47
|
|
|
—
|
|
|
(3
|
)
|
|
44
|
|
|
—
|
|
|
44
|
|
||||||
Total Level 3
|
48
|
|
|
—
|
|
|
(3
|
)
|
|
45
|
|
|
—
|
|
|
45
|
|
||||||
Investments measured at net asset value
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt funds
|
497
|
|
|
—
|
|
|
(6
|
)
|
|
491
|
|
|
491
|
|
|
—
|
|
||||||
Total available-for-sale securities
|
9,008
|
|
|
127
|
|
|
(246
|
)
|
|
8,889
|
|
|
8,741
|
|
|
148
|
|
||||||
Cost method, equity method, and other investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Level 3:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost method, equity method, and other investments
|
589
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
589
|
|
||||||
Total Level 3
|
589
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
589
|
|
||||||
Total cost method, equity method, and other investments
|
589
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
589
|
|
||||||
Total investments
|
$
|
9,597
|
|
|
$
|
127
|
|
|
$
|
(246
|
)
|
|
$
|
8,889
|
|
|
$
|
8,741
|
|
|
$
|
737
|
|
|
October 27, 2017
|
||||||||||||||
|
Less than 12 months
|
|
More than 12 months
|
||||||||||||
(in millions)
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||
Corporate debt securities
|
$
|
946
|
|
|
$
|
(9
|
)
|
|
$
|
209
|
|
|
$
|
(7
|
)
|
Auction rate securities
|
—
|
|
|
—
|
|
|
44
|
|
|
(3
|
)
|
||||
Mortgage-backed securities
|
296
|
|
|
(4
|
)
|
|
97
|
|
|
(15
|
)
|
||||
U.S. government and agency securities
|
877
|
|
|
(15
|
)
|
|
216
|
|
|
(5
|
)
|
||||
Debt funds
|
7
|
|
|
(1
|
)
|
|
958
|
|
|
(173
|
)
|
||||
Other asset-backed securities
|
201
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||
Marketable equity securities
|
—
|
|
|
—
|
|
|
2
|
|
|
(1
|
)
|
||||
Total
|
$
|
2,327
|
|
|
$
|
(30
|
)
|
|
$
|
1,526
|
|
|
$
|
(204
|
)
|
|
April 28, 2017
|
||||||||||||||
|
Less than 12 months
|
|
More than 12 months
|
||||||||||||
(in millions)
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||
Corporate debt securities
|
$
|
1,263
|
|
|
$
|
(19
|
)
|
|
$
|
46
|
|
|
$
|
(4
|
)
|
Auction rate securities
|
—
|
|
|
—
|
|
|
44
|
|
|
(3
|
)
|
||||
Mortgage-backed securities
|
276
|
|
|
(4
|
)
|
|
95
|
|
|
(12
|
)
|
||||
U.S. government and agency securities
|
896
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
||||
Other asset-backed securities
|
127
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||
Debt funds
|
173
|
|
|
(1
|
)
|
|
1,125
|
|
|
(183
|
)
|
||||
Marketable equity securities
|
14
|
|
|
(3
|
)
|
|
2
|
|
|
(1
|
)
|
||||
Total
|
$
|
2,749
|
|
|
$
|
(43
|
)
|
|
$
|
1,312
|
|
|
$
|
(203
|
)
|
|
Valuation Technique
|
Unobservable Input
|
Range (Weighted Average)
|
Auction rate securities
|
Discounted cash flow
|
Years to principal recovery
|
2 yrs. - 12 yrs. (3 yrs.)
|
Illiquidity premium
|
6%
|
|
Three months ended October 27, 2017
|
||||||||||
(in millions)
|
Total Level 3
Investments |
|
Corporate Debt
Securities |
|
Auction Rate
Securities |
||||||
July 28, 2017
|
$
|
45
|
|
|
$
|
1
|
|
|
$
|
44
|
|
Total unrealized gains (losses) included in other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|||
October 27, 2017
|
$
|
45
|
|
|
$
|
1
|
|
|
$
|
44
|
|
|
|
|
|
|
|
||||||
|
Three months ended October 28, 2016
|
||||||||||
(in millions)
|
Total Level 3
Investments |
|
Corporate Debt
Securities |
|
Auction Rate
Securities |
||||||
July 29, 2016
|
$
|
45
|
|
|
$
|
1
|
|
|
$
|
44
|
|
Total unrealized gains (losses) included in other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|||
October 28, 2016
|
$
|
45
|
|
|
$
|
1
|
|
|
$
|
44
|
|
|
|
|
|
|
|
||||||
|
Six months ended October 27, 2017
|
||||||||||
(in millions)
|
Total Level 3
Investments |
|
Corporate Debt
Securities |
|
Auction Rate
Securities |
||||||
April 28, 2017
|
$
|
45
|
|
|
$
|
1
|
|
|
$
|
44
|
|
Total unrealized gains (losses) included in other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|||
October 27, 2017
|
$
|
45
|
|
|
$
|
1
|
|
|
$
|
44
|
|
|
|
|
|
|
|
||||||
|
Six months ended October 28, 2016
|
||||||||||
(in millions)
|
Total Level 3
Investments |
|
Corporate Debt
Securities |
|
Auction Rate
Securities |
||||||
April 29, 2016
|
$
|
45
|
|
|
$
|
1
|
|
|
$
|
44
|
|
Total unrealized gains (losses) included in other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|||
October 28, 2016
|
$
|
45
|
|
|
$
|
1
|
|
|
$
|
44
|
|
|
Three months ended
|
||||||||||||||
|
October 27, 2017
|
|
October 28, 2016
|
||||||||||||
(in millions)
|
Debt
(1)
|
|
Equity
(2)
|
|
Debt
(1)
|
|
Equity
(2)
|
||||||||
Proceeds from sales
|
$
|
1,383
|
|
|
$
|
—
|
|
|
$
|
2,444
|
|
|
$
|
76
|
|
Gross realized gains
|
11
|
|
|
—
|
|
|
57
|
|
|
25
|
|
||||
Gross realized losses
|
(12
|
)
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
||||
Impairment losses recognized
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(7
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
|
Six months ended
|
||||||||||||||
|
October 27, 2017
|
|
October 28, 2016
|
||||||||||||
(in millions)
|
Debt
(1)
|
|
Equity
(2)
|
|
Debt
(1)
|
|
Equity
(2)
|
||||||||
Proceeds from sales
|
$
|
2,354
|
|
|
$
|
—
|
|
|
$
|
3,542
|
|
|
$
|
82
|
|
Gross realized gains
|
19
|
|
|
7
|
|
|
64
|
|
|
29
|
|
||||
Gross realized losses
|
(15
|
)
|
|
—
|
|
|
(49
|
)
|
|
—
|
|
||||
Impairment losses recognized
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(10
|
)
|
(1)
|
Includes available-for-sale debt securities and debt funds.
|
(2)
|
Includes marketable equity securities and cost and equity method investments.
|
(in millions)
|
October 27, 2017
|
||
Due in one year or less
|
$
|
865
|
|
Due after one year through five years
|
2,601
|
|
|
Due after five years through ten years
|
3,298
|
|
|
Due after ten years
|
107
|
|
|
Total
|
$
|
6,871
|
|
(in millions, except interest rates)
|
|
Maturity by
Fiscal Year
|
|
October 27, 2017
|
|
April 28, 2017
|
||||
Current debt obligations
|
|
2018
|
|
$
|
3,131
|
|
|
$
|
7,520
|
|
|
|
|
|
|
|
|
||||
Long-term debt
|
|
|
|
|
|
|
||||
5.600 percent ten-year 2009 senior notes
|
|
2019
|
|
400
|
|
|
400
|
|
||
1.700 percent two-year 2017 senior notes
|
|
2019
|
|
1,000
|
|
|
1,000
|
|
||
4.450 percent ten-year 2010 senior notes
|
|
2020
|
|
766
|
|
|
766
|
|
||
2.500 percent five-year 2015 senior notes
|
|
2020
|
|
2,500
|
|
|
2,500
|
|
||
Floating rate five-year 2015 senior notes
|
|
2020
|
|
500
|
|
|
500
|
|
||
4.200 percent ten-year 2010 CIFSA senior notes
|
|
2021
|
|
600
|
|
|
600
|
|
||
4.125 percent ten-year 2011 senior notes
|
|
2021
|
|
500
|
|
|
500
|
|
||
3.125 percent ten-year 2012 senior notes
|
|
2022
|
|
675
|
|
|
675
|
|
||
3.150 percent seven-year 2015 senior notes
|
|
2022
|
|
2,500
|
|
|
2,500
|
|
||
3.200 percent ten-year 2012 CIFSA senior notes
|
|
2023
|
|
650
|
|
|
650
|
|
||
2.750 percent ten-year 2013 senior notes
|
|
2023
|
|
530
|
|
|
530
|
|
||
2.950 percent ten-year 2013 CIFSA senior notes
|
|
2024
|
|
310
|
|
|
310
|
|
||
3.625 percent ten-year 2014 senior notes
|
|
2024
|
|
850
|
|
|
850
|
|
||
3.500 percent ten-year 2015 senior notes
|
|
2025
|
|
4,000
|
|
|
4,000
|
|
||
3.350 percent ten-year 2017 senior notes
|
|
2027
|
|
850
|
|
|
850
|
|
||
4.375 percent twenty-year 2015 senior notes
|
|
2035
|
|
2,382
|
|
|
2,382
|
|
||
6.550 percent thirty-year 2008 CIFSA senior notes
|
|
2038
|
|
374
|
|
|
374
|
|
||
6.500 percent thirty-year 2009 senior notes
|
|
2039
|
|
300
|
|
|
300
|
|
||
5.550 percent thirty-year 2010 senior notes
|
|
2040
|
|
500
|
|
|
500
|
|
||
4.500 percent thirty-year 2012 senior notes
|
|
2042
|
|
400
|
|
|
400
|
|
||
4.000 percent thirty-year 2013 senior notes
|
|
2043
|
|
325
|
|
|
325
|
|
||
4.625 percent thirty-year 2014 senior notes
|
|
2044
|
|
650
|
|
|
650
|
|
||
4.625 percent thirty-year 2015 senior notes
|
|
2045
|
|
4,150
|
|
|
4,150
|
|
||
Interest rate swaps (Note 9)
|
|
2021 - 2022
|
|
30
|
|
|
40
|
|
||
Capital lease obligations
|
|
2019 - 2025
|
|
22
|
|
|
23
|
|
||
Bank borrowings
|
|
2019 - 2021
|
|
169
|
|
|
139
|
|
||
Debt premium, net
|
|
2019 - 2045
|
|
127
|
|
|
135
|
|
||
Deferred financing costs
|
|
2019 - 2045
|
|
(119
|
)
|
|
(128
|
)
|
||
Long-term debt
|
|
|
|
$
|
25,941
|
|
|
$
|
25,921
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in millions)
|
|
Classification
|
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||||||
Currency exchange rate contract losses
|
|
Other expense, net
|
|
$
|
42
|
|
|
$
|
38
|
|
|
$
|
137
|
|
|
$
|
41
|
|
|
|
Three months ended October 27, 2017
|
||||||||
|
|
Recognized in AOCI
|
|
Recognized in Income
|
||||||
(in millions)
|
|
Amount
|
|
Classification
|
|
Amount
|
||||
Currency exchange rate contracts
|
|
$
|
30
|
|
|
Other expense, net
|
|
$
|
(10
|
)
|
Total
|
|
$
|
30
|
|
|
|
|
$
|
(10
|
)
|
|
|
|
|
|
|
|
||||
|
|
Three months ended October 28, 2016
|
||||||||
|
|
Recognized in AOCI
|
|
Recognized in Income
|
||||||
(in millions)
|
|
Amount
|
|
Classification
|
|
Amount
|
||||
Currency exchange rate contracts
|
|
$
|
69
|
|
|
Other expense, net
|
|
$
|
6
|
|
Total
|
|
$
|
69
|
|
|
|
|
$
|
6
|
|
|
|
|
|
|
|
|
||||
|
|
Six months ended October 27, 2017
|
||||||||
|
|
Recognized in AOCI
|
|
Recognized in Income
|
||||||
(in millions)
|
|
Amount
|
|
Classification
|
|
Amount
|
||||
Currency exchange rate contracts
|
|
$
|
(220
|
)
|
|
Other expense, net
|
|
$
|
12
|
|
Total
|
|
$
|
(220
|
)
|
|
|
|
$
|
12
|
|
|
|
|
|
|
|
|
||||
|
|
Six months ended October 28, 2016
|
||||||||
|
|
Recognized in AOCI
|
|
Recognized in Income
|
||||||
(in millions)
|
|
Amount
|
|
Classification
|
|
Amount
|
||||
Currency exchange rate contracts
|
|
$
|
190
|
|
|
Other expense, net
|
|
$
|
22
|
|
Total
|
|
$
|
190
|
|
|
|
|
$
|
22
|
|
|
October 27, 2017
|
||||||||||
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||
(in millions)
|
Balance Sheet Classification
|
|
Fair Value
|
|
Balance Sheet Classification
|
|
Fair Value
|
||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
||
Currency exchange rate contracts
|
Prepaid expenses and other current assets
|
|
$
|
61
|
|
|
Other accrued expenses
|
|
$
|
113
|
|
Interest rate contracts
|
Other assets
|
|
30
|
|
|
Other liabilities
|
|
—
|
|
||
Currency exchange rate contracts
|
Other assets
|
|
41
|
|
|
Other liabilities
|
|
63
|
|
||
Total derivatives designated as hedging instruments
|
|
|
$
|
132
|
|
|
|
|
$
|
176
|
|
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
||
Currency exchange rate contracts
|
Prepaid expenses and other current assets
|
|
$
|
35
|
|
|
Other accrued expenses
|
|
$
|
27
|
|
Total return swap
|
Prepaid expenses and other current assets
|
|
8
|
|
|
Other accrued expenses
|
|
—
|
|
||
Stock warrants
|
Other assets
|
|
25
|
|
|
Other liabilities
|
|
—
|
|
||
Cross currency interest rate contracts
|
Other assets
|
|
6
|
|
|
Other liabilities
|
|
8
|
|
||
Total derivatives not designated as hedging instruments
|
|
|
$
|
74
|
|
|
|
|
$
|
35
|
|
Total derivatives
|
|
|
$
|
206
|
|
|
|
|
$
|
211
|
|
|
April 28, 2017
|
||||||||||
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||
(in millions)
|
Balance Sheet Classification
|
|
Fair Value
|
|
Balance Sheet Classification
|
|
Fair Value
|
||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
||
Currency exchange rate contracts
|
Prepaid expenses and other current assets
|
|
$
|
152
|
|
|
Other accrued expenses
|
|
$
|
43
|
|
Interest rate contracts
|
Other assets
|
|
41
|
|
|
Other liabilities
|
|
—
|
|
||
Currency exchange rate contracts
|
Other assets
|
|
48
|
|
|
Other liabilities
|
|
14
|
|
||
Total derivatives designated as hedging instruments
|
|
|
$
|
241
|
|
|
|
|
$
|
57
|
|
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
||
Currency exchange rate contracts
|
Prepaid expenses and other current assets
|
|
16
|
|
|
Other accrued expenses
|
|
36
|
|
||
Cross currency interest rate contracts
|
Other assets
|
|
5
|
|
|
Other liabilities
|
|
11
|
|
||
Total derivatives not designated as hedging instruments
|
|
|
$
|
21
|
|
|
|
|
$
|
47
|
|
Total derivatives
|
|
|
$
|
262
|
|
|
|
|
$
|
104
|
|
|
October 27, 2017
|
|
April 28, 2017
|
||||||||||||
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 1
|
|
Level 2
|
||||||||
Derivative assets
|
$
|
137
|
|
|
$
|
69
|
|
|
$
|
216
|
|
|
$
|
46
|
|
Derivative liabilities
|
203
|
|
|
8
|
|
|
93
|
|
|
11
|
|
|
|
October 27, 2017
|
||||||||||||||
|
|
|
|
Gross Amount Not Offset on the Balance Sheet
|
|
|
||||||||||
(in millions)
|
|
Gross Amount of Recorded Assets (Liabilities)
|
|
Financial Instruments
|
|
Collateral (Received) Posted
|
|
Net Amount
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Currency exchange rate contracts
|
|
$
|
137
|
|
|
$
|
(110
|
)
|
|
$
|
—
|
|
|
$
|
27
|
|
Interest rate contracts
|
|
30
|
|
|
(13
|
)
|
|
—
|
|
|
17
|
|
||||
Cross currency interest rate contracts
|
|
6
|
|
|
(2
|
)
|
|
—
|
|
|
4
|
|
||||
Stock warrants
|
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||
Total return swap
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||
|
|
$
|
206
|
|
|
$
|
(125
|
)
|
|
$
|
—
|
|
|
$
|
81
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Currency exchange rate contracts
|
|
$
|
(203
|
)
|
|
$
|
123
|
|
|
$
|
—
|
|
|
$
|
(80
|
)
|
Cross currency interest rate contracts
|
|
(8
|
)
|
|
2
|
|
|
—
|
|
|
(6
|
)
|
||||
|
|
(211
|
)
|
|
125
|
|
|
—
|
|
|
(86
|
)
|
||||
Total
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
|
April 28, 2017
|
||||||||||||||
|
|
|
|
Gross Amount Not Offset on the Balance Sheet
|
|
|
||||||||||
(in millions)
|
|
Gross Amount of Recorded Assets (Liabilities)
|
|
Financial Instruments
|
|
Collateral (Received) Posted
|
|
Net Amount
|
||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
||||||||
Currency exchange rate contracts
|
|
$
|
216
|
|
|
$
|
(58
|
)
|
|
$
|
(55
|
)
|
|
$
|
103
|
|
Interest rate contracts
|
|
41
|
|
|
(15
|
)
|
|
(5
|
)
|
|
21
|
|
||||
Cross currency interest rate contracts
|
|
5
|
|
|
(2
|
)
|
|
—
|
|
|
3
|
|
||||
|
|
$
|
262
|
|
|
$
|
(75
|
)
|
|
$
|
(60
|
)
|
|
$
|
127
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Currency exchange rate contracts
|
|
$
|
(93
|
)
|
|
$
|
73
|
|
|
$
|
—
|
|
|
$
|
(20
|
)
|
Cross currency interest rate contracts
|
|
(11
|
)
|
|
2
|
|
|
—
|
|
|
(9
|
)
|
||||
|
|
(104
|
)
|
|
75
|
|
|
—
|
|
|
(29
|
)
|
||||
Total
|
|
$
|
158
|
|
|
$
|
—
|
|
|
$
|
(60
|
)
|
|
$
|
98
|
|
(in millions)
|
October 27, 2017
|
|
April 28, 2017
|
||||
Finished goods
|
$
|
2,368
|
|
|
$
|
2,211
|
|
Work in-process
|
515
|
|
|
458
|
|
||
Raw materials
|
755
|
|
|
669
|
|
||
Total
|
$
|
3,638
|
|
|
$
|
3,338
|
|
(in millions)
|
Cardiac and Vascular Group
|
|
Minimally Invasive Therapies Group
|
|
Restorative Therapies Group
|
|
Diabetes Group
|
|
Total
|
||||||||||
April 28, 2017
|
$
|
6,651
|
|
|
$
|
20,411
|
|
|
$
|
9,600
|
|
|
$
|
1,853
|
|
|
$
|
38,515
|
|
Goodwill as a result of acquisitions
|
—
|
|
|
—
|
|
|
9
|
|
|
6
|
|
|
15
|
|
|||||
Purchase accounting adjustments
|
54
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|||||
Currency and other adjustments, net
|
48
|
|
|
405
|
|
|
41
|
|
|
(1
|
)
|
|
493
|
|
|||||
October 27, 2017
|
$
|
6,753
|
|
|
$
|
20,816
|
|
|
$
|
9,650
|
|
|
$
|
1,858
|
|
|
$
|
39,077
|
|
|
October 27, 2017
|
|
April 28, 2017
|
||||||||||||
(in millions)
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
||||||||
Definite-lived:
|
|
|
|
|
|
|
|
||||||||
Customer-related
|
$
|
16,964
|
|
|
$
|
(2,652
|
)
|
|
$
|
16,862
|
|
|
$
|
(2,166
|
)
|
Purchased technology and patents
|
11,479
|
|
|
(4,038
|
)
|
|
11,461
|
|
|
(3,690
|
)
|
||||
Trademarks and tradenames
|
821
|
|
|
(544
|
)
|
|
772
|
|
|
(461
|
)
|
||||
Other
|
80
|
|
|
(46
|
)
|
|
77
|
|
|
(42
|
)
|
||||
Total
|
$
|
29,344
|
|
|
$
|
(7,280
|
)
|
|
$
|
29,172
|
|
|
$
|
(6,359
|
)
|
Indefinite-lived:
|
|
|
|
|
|
|
|
||||||||
IPR&D
|
$
|
561
|
|
|
|
|
$
|
594
|
|
|
|
(in millions)
|
Amortization Expense
|
||
Remaining 2018
|
$
|
871
|
|
2019
|
1,672
|
|
|
2020
|
1,622
|
|
|
2021
|
1,601
|
|
|
2022
|
1,561
|
|
|
2023
|
1,490
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in millions, except per share data)
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to ordinary shareholders
|
$
|
2,017
|
|
|
$
|
1,115
|
|
|
$
|
3,033
|
|
|
$
|
2,044
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic – weighted average shares outstanding
|
1,355.1
|
|
|
1,380.0
|
|
|
1,358.5
|
|
|
1,386.5
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Employee stock options
|
7.7
|
|
|
9.3
|
|
|
8.5
|
|
|
9.9
|
|
||||
Employee restricted stock units
|
3.0
|
|
|
3.2
|
|
|
3.5
|
|
|
3.6
|
|
||||
Other
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.2
|
|
||||
Diluted – weighted average shares outstanding
|
1,365.8
|
|
|
1,392.5
|
|
|
1,370.8
|
|
|
1,400.2
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per share
|
$
|
1.49
|
|
|
$
|
0.81
|
|
|
$
|
2.23
|
|
|
$
|
1.47
|
|
Diluted earnings per share
|
$
|
1.48
|
|
|
$
|
0.80
|
|
|
$
|
2.21
|
|
|
$
|
1.46
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||||||
Stock options
|
$
|
42
|
|
|
$
|
53
|
|
|
$
|
77
|
|
|
$
|
91
|
|
Restricted stock
|
59
|
|
|
54
|
|
|
107
|
|
|
88
|
|
||||
Employee stock purchase plan
|
5
|
|
|
4
|
|
|
14
|
|
|
11
|
|
||||
Total stock-based compensation expense
|
$
|
106
|
|
|
$
|
111
|
|
|
$
|
198
|
|
|
$
|
190
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of products sold
|
$
|
14
|
|
|
$
|
15
|
|
|
$
|
24
|
|
|
$
|
26
|
|
Research and development expense
|
12
|
|
|
13
|
|
|
21
|
|
|
22
|
|
||||
Selling, general, and administrative expense
|
79
|
|
|
73
|
|
|
134
|
|
|
124
|
|
||||
Restructuring charges
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||
Acquisition-related items
|
1
|
|
|
9
|
|
|
3
|
|
|
16
|
|
||||
Divestiture-related items
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
||||
Total stock-based compensation expense
|
106
|
|
|
111
|
|
|
198
|
|
|
190
|
|
||||
Income tax benefits
|
(32
|
)
|
|
(33
|
)
|
|
(57
|
)
|
|
(54
|
)
|
||||
Total stock-based compensation expense, net of tax
|
$
|
74
|
|
|
$
|
78
|
|
|
$
|
141
|
|
|
$
|
136
|
|
|
U.S. Pension Benefits
|
|
Non-U.S. Pension Benefits
|
||||||||||||
|
Three months ended
|
|
Three months ended
|
||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||||||
Service cost
|
$
|
29
|
|
|
$
|
29
|
|
|
$
|
17
|
|
|
$
|
19
|
|
Interest cost
|
30
|
|
|
27
|
|
|
7
|
|
|
6
|
|
||||
Expected return on plan assets
|
(52
|
)
|
|
(47
|
)
|
|
(13
|
)
|
|
(12
|
)
|
||||
Amortization of net actuarial loss
|
20
|
|
|
23
|
|
|
4
|
|
|
4
|
|
||||
Net periodic benefit cost
|
$
|
27
|
|
|
$
|
32
|
|
|
$
|
15
|
|
|
$
|
17
|
|
|
U.S. Pension Benefits
|
|
Non-U.S. Pension Benefits
|
||||||||||||
|
Six months ended
|
|
Six months ended
|
||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||||||
Service cost
|
$
|
58
|
|
|
$
|
58
|
|
|
34
|
|
|
$
|
38
|
|
|
Interest cost
|
60
|
|
|
54
|
|
|
14
|
|
|
12
|
|
||||
Expected return on plan assets
|
(104
|
)
|
|
(94
|
)
|
|
(26
|
)
|
|
(24
|
)
|
||||
Amortization of net actuarial loss
|
40
|
|
|
46
|
|
|
8
|
|
|
8
|
|
||||
Net periodic benefit cost
|
$
|
54
|
|
|
$
|
64
|
|
|
$
|
30
|
|
|
$
|
34
|
|
(in millions)
|
Unrealized Gain (Loss) on Available-for-Sale Securities
|
|
Cumulative Translation Adjustment
|
|
Net Change in Retirement Obligations
|
|
Unrealized Gain (Loss) on Derivative Financial Instruments
|
|
Total Accumulated Other Comprehensive (Loss) Income
|
||||||||||
April 28, 2017
|
$
|
(69
|
)
|
|
$
|
(1,452
|
)
|
|
$
|
(1,129
|
)
|
|
$
|
37
|
|
|
$
|
(2,613
|
)
|
Other comprehensive income (loss) before reclassifications
|
63
|
|
|
662
|
|
|
(19
|
)
|
|
(140
|
)
|
|
566
|
|
|||||
Reclassifications
|
(8
|
)
|
|
(34
|
)
|
|
33
|
|
|
(4
|
)
|
|
(13
|
)
|
|||||
Other comprehensive income (loss)
|
55
|
|
|
628
|
|
|
14
|
|
|
(144
|
)
|
|
553
|
|
|||||
October 27, 2017
|
$
|
(14
|
)
|
|
$
|
(824
|
)
|
|
$
|
(1,115
|
)
|
|
$
|
(107
|
)
|
|
$
|
(2,060
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(in millions)
|
Unrealized Gain (Loss) on Available-for-Sale Securities
|
|
Cumulative Translation Adjustment
|
|
Net Change in Retirement Obligations
|
|
Unrealized Gain (Loss) on Derivative Financial Instruments
|
|
Total Accumulated Other Comprehensive (Loss) Income
|
||||||||||
April 29, 2016
|
$
|
(107
|
)
|
|
$
|
(474
|
)
|
|
$
|
(1,197
|
)
|
|
$
|
(90
|
)
|
|
$
|
(1,868
|
)
|
Other comprehensive income (loss) before reclassifications
|
88
|
|
|
(686
|
)
|
|
—
|
|
|
118
|
|
|
(480
|
)
|
|||||
Reclassifications
|
(13
|
)
|
|
—
|
|
|
44
|
|
|
(11
|
)
|
|
20
|
|
|||||
Other comprehensive income (loss)
|
75
|
|
|
(686
|
)
|
|
44
|
|
|
107
|
|
|
(460
|
)
|
|||||
October 28, 2016
|
$
|
(32
|
)
|
|
$
|
(1,160
|
)
|
|
$
|
(1,153
|
)
|
|
$
|
17
|
|
|
$
|
(2,328
|
)
|
(in millions)
|
|
Total Shareholders' Equity
|
|
Noncontrolling Interests
|
|
Total Equity
|
||||||
April 28, 2017
|
|
$
|
50,294
|
|
|
$
|
122
|
|
|
$
|
50,416
|
|
Net income (loss)
|
|
3,033
|
|
|
(11
|
)
|
|
3,022
|
|
|||
Other comprehensive income
|
|
553
|
|
|
—
|
|
|
553
|
|
|||
Dividends to shareholders
|
|
(1,247
|
)
|
|
—
|
|
|
(1,247
|
)
|
|||
Issuance of shares under stock purchase and award plans
|
|
177
|
|
|
—
|
|
|
177
|
|
|||
Repurchase of ordinary shares
|
|
(1,835
|
)
|
|
—
|
|
|
(1,835
|
)
|
|||
Stock-based compensation
|
|
198
|
|
|
—
|
|
|
198
|
|
|||
Cumulative effect of change in accounting principle
|
|
296
|
|
|
—
|
|
|
296
|
|
|||
Additions (reductions) of noncontrolling ownership interests
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|||
October 27, 2017
|
|
$
|
51,469
|
|
|
$
|
109
|
|
|
$
|
51,578
|
|
|
|
|
|
|
|
|
||||||
(in millions)
|
|
Total Shareholders' Equity
|
|
Noncontrolling Interests
|
|
Total Equity
|
||||||
April 29, 2016
|
|
$
|
52,063
|
|
|
$
|
—
|
|
|
$
|
52,063
|
|
Net income (loss)
|
|
2,044
|
|
|
(4
|
)
|
|
2,040
|
|
|||
Other comprehensive loss
|
|
(460
|
)
|
|
—
|
|
|
(460
|
)
|
|||
Dividends to shareholders
|
|
(1,192
|
)
|
|
—
|
|
|
(1,192
|
)
|
|||
Issuance of shares under stock purchase and award plans
|
|
260
|
|
|
—
|
|
|
260
|
|
|||
Repurchase of ordinary shares
|
|
(2,794
|
)
|
|
—
|
|
|
(2,794
|
)
|
|||
Tax benefit from exercise of stock-based awards
|
|
75
|
|
|
—
|
|
|
75
|
|
|||
Stock-based compensation
|
|
190
|
|
|
—
|
|
|
190
|
|
|||
Additions (reductions) of noncontrolling ownership interests
|
|
—
|
|
|
111
|
|
|
111
|
|
|||
October 28, 2016
|
|
$
|
50,186
|
|
|
$
|
107
|
|
|
$
|
50,293
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||||||
Cardiac and Vascular Group
|
$
|
2,773
|
|
|
$
|
2,584
|
|
|
$
|
5,419
|
|
|
$
|
5,102
|
|
Minimally Invasive Therapies Group
|
1,952
|
|
|
2,473
|
|
|
4,438
|
|
|
4,897
|
|
||||
Restorative Therapies Group
|
1,863
|
|
|
1,826
|
|
|
3,672
|
|
|
3,598
|
|
||||
Diabetes Group
|
462
|
|
|
462
|
|
|
911
|
|
|
914
|
|
||||
Net Sales
|
$
|
7,050
|
|
|
$
|
7,345
|
|
|
$
|
14,440
|
|
|
$
|
14,511
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||||||
Cardiac and Vascular Group
|
$
|
1,104
|
|
|
$
|
1,017
|
|
|
$
|
2,115
|
|
|
$
|
1,971
|
|
Minimally Invasive Therapies Group
|
761
|
|
|
886
|
|
|
1,636
|
|
|
1,710
|
|
||||
Restorative Therapies Group
|
750
|
|
|
700
|
|
|
1,430
|
|
|
1,370
|
|
||||
Diabetes Group
|
91
|
|
|
158
|
|
|
202
|
|
|
317
|
|
||||
Reportable segments' EBITA before other adjustments
|
2,706
|
|
|
2,761
|
|
|
5,383
|
|
|
5,368
|
|
||||
Amortization of intangible assets
|
(460
|
)
|
|
(500
|
)
|
|
(914
|
)
|
|
(987
|
)
|
||||
Restructuring charges, net
|
(18
|
)
|
|
(47
|
)
|
|
(32
|
)
|
|
(151
|
)
|
||||
Acquisition-related items
|
(18
|
)
|
|
(28
|
)
|
|
(71
|
)
|
|
(80
|
)
|
||||
Certain litigation charges
|
—
|
|
|
—
|
|
|
—
|
|
|
(82
|
)
|
||||
Divestiture-related items
|
(67
|
)
|
|
—
|
|
|
(115
|
)
|
|
—
|
|
||||
Gain on sale of businesses
|
697
|
|
|
—
|
|
|
697
|
|
|
—
|
|
||||
Special charge
|
(80
|
)
|
|
—
|
|
|
(80
|
)
|
|
—
|
|
||||
Hurricane Maria
|
(34
|
)
|
|
—
|
|
|
(34
|
)
|
|
—
|
|
||||
Impact of inventory step-up
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
(38
|
)
|
||||
Centralized distribution costs
|
(486
|
)
|
|
(446
|
)
|
|
(928
|
)
|
|
(847
|
)
|
||||
Interest expense, net
|
(173
|
)
|
|
(173
|
)
|
|
(367
|
)
|
|
(352
|
)
|
||||
Corporate
|
(339
|
)
|
|
(317
|
)
|
|
(616
|
)
|
|
(631
|
)
|
||||
Income before income taxes
|
$
|
1,728
|
|
|
$
|
1,212
|
|
|
$
|
2,923
|
|
|
$
|
2,200
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||||||
Americas
(1)
|
$
|
4,090
|
|
|
$
|
4,471
|
|
|
$
|
8,457
|
|
|
$
|
8,768
|
|
EMEA
(2)
|
1,692
|
|
|
1,592
|
|
|
3,424
|
|
|
3,243
|
|
||||
Asia-Pacific
|
434
|
|
|
890
|
|
|
1,691
|
|
|
1,712
|
|
||||
Greater China
|
834
|
|
|
392
|
|
|
868
|
|
|
788
|
|
||||
Net Sales
|
$
|
7,050
|
|
|
$
|
7,345
|
|
|
$
|
14,440
|
|
|
$
|
14,511
|
|
•
|
Parent Company Guarantor - Medtronic plc
|
•
|
Subsidiary Issuer - Medtronic, Inc.
|
•
|
Subsidiary Guarantor - Medtronic Luxco
|
•
|
Parent Company Guarantor - Medtronic plc
|
•
|
Subsidiary Issuer - Medtronic Luxco
|
•
|
Subsidiary Guarantor - Medtronic, Inc.
|
•
|
Parent Company Guarantor - Medtronic plc
|
•
|
Subsidiary Issuer - CIFSA
|
•
|
Subsidiary Guarantors - Medtronic Luxco, Covidien Ltd., and Covidien Group Holdings Ltd. (CIFSA Subsidiary Guarantors)
|
(in millions)
|
Medtronic plc
|
|
Medtronic, Inc.
|
|
Medtronic Luxco
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments |
|
Total
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
300
|
|
|
$
|
—
|
|
|
$
|
7,050
|
|
|
$
|
(300
|
)
|
|
$
|
7,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of products sold
|
—
|
|
|
228
|
|
|
—
|
|
|
2,204
|
|
|
(312
|
)
|
|
2,120
|
|
||||||
Research and development expense
|
—
|
|
|
169
|
|
|
—
|
|
|
386
|
|
|
—
|
|
|
555
|
|
||||||
Selling, general, and administrative expense
|
3
|
|
|
375
|
|
|
—
|
|
|
2,060
|
|
|
—
|
|
|
2,438
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
2
|
|
|
—
|
|
|
458
|
|
|
—
|
|
|
460
|
|
||||||
Restructuring charges, net
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||||
Acquisition-related items
|
—
|
|
|
14
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
7
|
|
||||||
Divestiture-related items
|
—
|
|
|
6
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
67
|
|
||||||
Gain on sale of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
(697
|
)
|
|
—
|
|
|
(697
|
)
|
||||||
Special charge
|
—
|
|
|
80
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80
|
|
||||||
Other (income) expense, net
|
12
|
|
|
(392
|
)
|
|
—
|
|
|
491
|
|
|
—
|
|
|
111
|
|
||||||
Operating profit (loss)
|
(15
|
)
|
|
(182
|
)
|
|
—
|
|
|
2,086
|
|
|
12
|
|
|
1,901
|
|
||||||
Interest income
|
—
|
|
|
(64
|
)
|
|
(103
|
)
|
|
(348
|
)
|
|
415
|
|
|
(100
|
)
|
||||||
Interest expense
|
60
|
|
|
425
|
|
|
48
|
|
|
155
|
|
|
(415
|
)
|
|
273
|
|
||||||
Interest expense, net
|
60
|
|
|
361
|
|
|
(55
|
)
|
|
(193
|
)
|
|
—
|
|
|
173
|
|
||||||
Equity in net (income) loss of subsidiaries
|
(2,091
|
)
|
|
(1,809
|
)
|
|
(2,036
|
)
|
|
—
|
|
|
5,936
|
|
|
—
|
|
||||||
Income before income taxes
|
2,016
|
|
|
1,266
|
|
|
2,091
|
|
|
2,279
|
|
|
(5,924
|
)
|
|
1,728
|
|
||||||
Income tax (benefit) provision
|
(1
|
)
|
|
(158
|
)
|
|
—
|
|
|
(126
|
)
|
|
—
|
|
|
(285
|
)
|
||||||
Net income
|
2,017
|
|
|
1,424
|
|
|
2,091
|
|
|
2,405
|
|
|
(5,924
|
)
|
|
2,013
|
|
||||||
Net loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Net income attributable to Medtronic
|
2,017
|
|
|
1,424
|
|
|
2,091
|
|
|
2,409
|
|
|
(5,924
|
)
|
|
2,017
|
|
||||||
Other comprehensive income (loss), net of tax
|
(136
|
)
|
|
(308
|
)
|
|
(136
|
)
|
|
(150
|
)
|
|
594
|
|
|
(136
|
)
|
||||||
Other comprehensive loss attributable to
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Total comprehensive income
|
$
|
1,881
|
|
|
$
|
1,116
|
|
|
$
|
1,955
|
|
|
$
|
2,259
|
|
|
$
|
(5,330
|
)
|
|
$
|
1,881
|
|
(in millions)
|
Medtronic plc
|
|
Medtronic, Inc.
|
|
Medtronic Luxco
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments |
|
Total
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
604
|
|
|
$
|
—
|
|
|
$
|
14,439
|
|
|
$
|
(603
|
)
|
|
$
|
14,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of products sold
|
—
|
|
|
450
|
|
|
—
|
|
|
4,638
|
|
|
(619
|
)
|
|
4,469
|
|
||||||
Research and development expense
|
—
|
|
|
327
|
|
|
—
|
|
|
776
|
|
|
—
|
|
|
1,103
|
|
||||||
Selling, general, and administrative expense
|
5
|
|
|
675
|
|
|
—
|
|
|
4,243
|
|
|
—
|
|
|
4,923
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
4
|
|
|
—
|
|
|
910
|
|
|
—
|
|
|
914
|
|
||||||
Restructuring charges, net
|
—
|
|
|
2
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
16
|
|
||||||
Acquisition-related items
|
—
|
|
|
44
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
51
|
|
||||||
Divestiture-related items
|
—
|
|
|
15
|
|
|
—
|
|
|
99
|
|
|
—
|
|
|
114
|
|
||||||
Gain on sale of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
(697
|
)
|
|
—
|
|
|
(697
|
)
|
||||||
Special charge
|
—
|
|
|
80
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80
|
|
||||||
Other (income) expense, net
|
25
|
|
|
(870
|
)
|
|
—
|
|
|
1,022
|
|
|
—
|
|
|
177
|
|
||||||
Operating profit (loss)
|
(30
|
)
|
|
(123
|
)
|
|
—
|
|
|
3,427
|
|
|
16
|
|
|
3,290
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
(135
|
)
|
|
(212
|
)
|
|
(679
|
)
|
|
834
|
|
|
(192
|
)
|
||||||
Interest expense
|
109
|
|
|
865
|
|
|
82
|
|
|
337
|
|
|
(834
|
)
|
|
559
|
|
||||||
Interest expense, net
|
109
|
|
|
730
|
|
|
(130
|
)
|
|
(342
|
)
|
|
—
|
|
|
367
|
|
||||||
Equity in net (income) loss of subsidiaries
|
(3,169
|
)
|
|
(2,623
|
)
|
|
(3,039
|
)
|
|
—
|
|
|
8,831
|
|
|
—
|
|
||||||
Income before income taxes
|
3,030
|
|
|
1,770
|
|
|
3,169
|
|
|
3,769
|
|
|
(8,815
|
)
|
|
2,923
|
|
||||||
Income tax (benefit) provision
|
(3
|
)
|
|
(236
|
)
|
|
—
|
|
|
140
|
|
|
—
|
|
|
(99
|
)
|
||||||
Net income
|
3,033
|
|
|
2,006
|
|
|
3,169
|
|
|
3,629
|
|
|
(8,815
|
)
|
|
3,022
|
|
||||||
Net loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||||
Net income attributable to Medtronic
|
3,033
|
|
|
2,006
|
|
|
3,169
|
|
|
3,640
|
|
|
(8,815
|
)
|
|
3,033
|
|
||||||
Other comprehensive income (loss), net of tax
|
553
|
|
|
(317
|
)
|
|
553
|
|
|
530
|
|
|
(766
|
)
|
|
553
|
|
||||||
Other comprehensive loss attributable to
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||||
Total comprehensive income
|
$
|
3,586
|
|
|
$
|
1,689
|
|
|
$
|
3,722
|
|
|
$
|
4,170
|
|
|
$
|
(9,581
|
)
|
|
$
|
3,586
|
|
(in millions)
|
Medtronic plc
|
|
Medtronic, Inc.
|
|
Medtronic Luxco
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments |
|
Total
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
337
|
|
|
$
|
—
|
|
|
$
|
7,344
|
|
|
$
|
(336
|
)
|
|
$
|
7,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of products sold
|
—
|
|
|
243
|
|
|
—
|
|
|
2,412
|
|
|
(329
|
)
|
|
2,326
|
|
||||||
Research and development expense
|
—
|
|
|
158
|
|
|
—
|
|
|
396
|
|
|
—
|
|
|
554
|
|
||||||
Selling, general, and administrative expense
|
3
|
|
|
284
|
|
|
—
|
|
|
2,129
|
|
|
—
|
|
|
2,416
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
3
|
|
|
—
|
|
|
497
|
|
|
—
|
|
|
500
|
|
||||||
Restructuring charges, net
|
—
|
|
|
1
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
47
|
|
||||||
Acquisition-related items
|
—
|
|
|
37
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
28
|
|
||||||
Other (income) expense, net
|
(86
|
)
|
|
(597
|
)
|
|
—
|
|
|
772
|
|
|
—
|
|
|
89
|
|
||||||
Operating profit (loss)
|
83
|
|
|
208
|
|
|
—
|
|
|
1,101
|
|
|
(7
|
)
|
|
1,385
|
|
||||||
Interest income
|
—
|
|
|
(59
|
)
|
|
(165
|
)
|
|
(286
|
)
|
|
419
|
|
|
(91
|
)
|
||||||
Interest expense
|
25
|
|
|
396
|
|
|
11
|
|
|
251
|
|
|
(419
|
)
|
|
264
|
|
||||||
Interest expense, net
|
25
|
|
|
337
|
|
|
(154
|
)
|
|
(35
|
)
|
|
—
|
|
|
173
|
|
||||||
Equity in net (income) loss of subsidiaries
|
(1,055
|
)
|
|
(859
|
)
|
|
(901
|
)
|
|
—
|
|
|
2,815
|
|
|
—
|
|
||||||
Income before income taxes
|
1,113
|
|
|
730
|
|
|
1,055
|
|
|
1,136
|
|
|
(2,822
|
)
|
|
1,212
|
|
||||||
Income tax (benefit) provision
|
(2
|
)
|
|
28
|
|
|
—
|
|
|
75
|
|
|
—
|
|
|
101
|
|
||||||
Net income
|
1,115
|
|
|
702
|
|
|
1,055
|
|
|
1,061
|
|
|
(2,822
|
)
|
|
1,111
|
|
||||||
Net loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Net income attributable to Medtronic
|
1,115
|
|
|
702
|
|
|
1,055
|
|
|
1,065
|
|
|
(2,822
|
)
|
|
1,115
|
|
||||||
Other comprehensive income (loss), net of tax
|
(304
|
)
|
|
47
|
|
|
(304
|
)
|
|
(329
|
)
|
|
586
|
|
|
(304
|
)
|
||||||
Other comprehensive loss attributable to
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Total comprehensive income
|
$
|
811
|
|
|
$
|
749
|
|
|
$
|
751
|
|
|
$
|
736
|
|
|
$
|
(2,236
|
)
|
|
$
|
811
|
|
(in millions)
|
Medtronic plc
|
|
Medtronic, Inc.
|
|
Medtronic Luxco
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments |
|
Total
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
685
|
|
|
$
|
—
|
|
|
$
|
14,510
|
|
|
$
|
(684
|
)
|
|
$
|
14,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cost of products sold
|
—
|
|
|
492
|
|
|
—
|
|
|
4,779
|
|
|
(684
|
)
|
|
4,587
|
|
||||||
Research and development expense
|
—
|
|
|
321
|
|
|
—
|
|
|
789
|
|
|
—
|
|
|
1,110
|
|
||||||
Selling, general, and administrative expense
|
6
|
|
|
564
|
|
|
—
|
|
|
4,274
|
|
|
—
|
|
|
4,844
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
6
|
|
|
—
|
|
|
981
|
|
|
—
|
|
|
987
|
|
||||||
Restructuring charges, net
|
—
|
|
|
18
|
|
|
—
|
|
|
123
|
|
|
—
|
|
|
141
|
|
||||||
Certain litigation charges
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
—
|
|
|
82
|
|
||||||
Acquisition-related items
|
—
|
|
|
60
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
80
|
|
||||||
Other (income) expense, net
|
(74
|
)
|
|
(1,306
|
)
|
|
—
|
|
|
1,508
|
|
|
—
|
|
|
128
|
|
||||||
Operating profit (loss)
|
68
|
|
|
530
|
|
|
—
|
|
|
1,954
|
|
|
—
|
|
|
2,552
|
|
||||||
Interest income
|
—
|
|
|
(121
|
)
|
|
(321
|
)
|
|
(424
|
)
|
|
682
|
|
|
(184
|
)
|
||||||
Interest expense
|
41
|
|
|
806
|
|
|
12
|
|
|
359
|
|
|
(682
|
)
|
|
536
|
|
||||||
Interest expense, net
|
41
|
|
|
685
|
|
|
(309
|
)
|
|
(65
|
)
|
|
—
|
|
|
352
|
|
||||||
Equity in net (income) loss of subsidiaries
|
(2,013
|
)
|
|
(2,095
|
)
|
|
(1,704
|
)
|
|
—
|
|
|
5,812
|
|
|
—
|
|
||||||
Income before income taxes
|
2,040
|
|
|
1,940
|
|
|
2,013
|
|
|
2,019
|
|
|
(5,812
|
)
|
|
2,200
|
|
||||||
Income tax (benefit) provision
|
(4
|
)
|
|
50
|
|
|
—
|
|
|
114
|
|
|
—
|
|
|
160
|
|
||||||
Net income
|
2,044
|
|
|
1,890
|
|
|
2,013
|
|
|
1,905
|
|
|
(5,812
|
)
|
|
2,040
|
|
||||||
Net loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Net income attributable to Medtronic
|
2,044
|
|
|
1,890
|
|
|
2,013
|
|
|
1,909
|
|
|
(5,812
|
)
|
|
2,044
|
|
||||||
Other comprehensive income (loss), net of tax
|
(460
|
)
|
|
142
|
|
|
(460
|
)
|
|
(500
|
)
|
|
818
|
|
|
(460
|
)
|
||||||
Other comprehensive loss attributable to
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Total comprehensive income
|
$
|
1,584
|
|
|
$
|
2,032
|
|
|
$
|
1,553
|
|
|
$
|
1,409
|
|
|
$
|
(4,994
|
)
|
|
$
|
1,584
|
|
(in millions)
|
Medtronic plc
|
|
Medtronic, Inc.
|
|
Medtronic Luxco
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments |
|
Total
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
822
|
|
|
$
|
4,660
|
|
|
$
|
—
|
|
|
$
|
5,529
|
|
Investments
|
—
|
|
|
—
|
|
|
—
|
|
|
7,997
|
|
|
—
|
|
|
7,997
|
|
||||||
Accounts receivable, net
|
—
|
|
|
—
|
|
|
—
|
|
|
5,752
|
|
|
—
|
|
|
5,752
|
|
||||||
Inventories, net
|
—
|
|
|
175
|
|
|
—
|
|
|
3,625
|
|
|
(162
|
)
|
|
3,638
|
|
||||||
Intercompany receivable
|
55
|
|
|
—
|
|
|
—
|
|
|
13,784
|
|
|
(13,839
|
)
|
|
—
|
|
||||||
Other current assets
|
10
|
|
|
195
|
|
|
1
|
|
|
2,040
|
|
|
—
|
|
|
2,246
|
|
||||||
Total current assets
|
65
|
|
|
417
|
|
|
823
|
|
|
37,858
|
|
|
(14,001
|
)
|
|
25,162
|
|
||||||
Property, plant, and equipment, net
|
—
|
|
|
1,333
|
|
|
—
|
|
|
3,108
|
|
|
—
|
|
|
4,441
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
39,077
|
|
|
—
|
|
|
39,077
|
|
||||||
Other intangible assets, net
|
—
|
|
|
15
|
|
|
—
|
|
|
22,610
|
|
|
—
|
|
|
22,625
|
|
||||||
Tax assets
|
—
|
|
|
792
|
|
|
—
|
|
|
957
|
|
|
—
|
|
|
1,749
|
|
||||||
Investment in subsidiaries
|
59,762
|
|
|
74,787
|
|
|
60,612
|
|
|
—
|
|
|
(195,161
|
)
|
|
—
|
|
||||||
Intercompany loans receivable
|
3,112
|
|
|
9,958
|
|
|
17,731
|
|
|
40,469
|
|
|
(71,270
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
439
|
|
|
—
|
|
|
965
|
|
|
—
|
|
|
1,404
|
|
||||||
Total assets
|
$
|
62,939
|
|
|
$
|
87,741
|
|
|
$
|
79,166
|
|
|
$
|
145,044
|
|
|
$
|
(280,432
|
)
|
|
$
|
94,458
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current debt obligations
|
$
|
—
|
|
|
$
|
2,000
|
|
|
$
|
699
|
|
|
$
|
432
|
|
|
$
|
—
|
|
|
$
|
3,131
|
|
Accounts payable
|
—
|
|
|
317
|
|
|
—
|
|
|
1,401
|
|
|
—
|
|
|
1,718
|
|
||||||
Intercompany payable
|
11
|
|
|
13,828
|
|
|
—
|
|
|
—
|
|
|
(13,839
|
)
|
|
—
|
|
||||||
Accrued compensation
|
6
|
|
|
604
|
|
|
—
|
|
|
892
|
|
|
—
|
|
|
1,502
|
|
||||||
Accrued income taxes
|
14
|
|
|
—
|
|
|
—
|
|
|
858
|
|
|
—
|
|
|
872
|
|
||||||
Other accrued expenses
|
88
|
|
|
472
|
|
|
4
|
|
|
2,709
|
|
|
—
|
|
|
3,273
|
|
||||||
Total current liabilities
|
119
|
|
|
17,221
|
|
|
703
|
|
|
6,292
|
|
|
(13,839
|
)
|
|
10,496
|
|
||||||
Long-term debt
|
—
|
|
|
21,785
|
|
|
1,842
|
|
|
2,314
|
|
|
—
|
|
|
25,941
|
|
||||||
Accrued compensation and retirement benefits
|
—
|
|
|
966
|
|
|
—
|
|
|
509
|
|
|
—
|
|
|
1,475
|
|
||||||
Accrued income taxes
|
10
|
|
|
1,620
|
|
|
—
|
|
|
564
|
|
|
—
|
|
|
2,194
|
|
||||||
Intercompany loans payable
|
11,316
|
|
|
14,835
|
|
|
23,868
|
|
|
21,251
|
|
|
(71,270
|
)
|
|
—
|
|
||||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
1,841
|
|
|
—
|
|
|
1,841
|
|
||||||
Other liabilities
|
25
|
|
|
63
|
|
|
—
|
|
|
845
|
|
|
—
|
|
|
933
|
|
||||||
Total liabilities
|
11,470
|
|
|
56,490
|
|
|
26,413
|
|
|
33,616
|
|
|
(85,109
|
)
|
|
42,880
|
|
||||||
Shareholders’ equity
|
51,469
|
|
|
31,251
|
|
|
52,753
|
|
|
111,319
|
|
|
(195,323
|
)
|
|
51,469
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
109
|
|
|
—
|
|
|
109
|
|
||||||
Total equity
|
51,469
|
|
|
31,251
|
|
|
52,753
|
|
|
111,428
|
|
|
(195,323
|
)
|
|
51,578
|
|
||||||
Total liabilities and equity
|
$
|
62,939
|
|
|
$
|
87,741
|
|
|
$
|
79,166
|
|
|
$
|
145,044
|
|
|
$
|
(280,432
|
)
|
|
$
|
94,458
|
|
(in millions)
|
Medtronic plc
|
|
Medtronic, Inc.
|
|
Medtronic Luxco
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
45
|
|
|
$
|
5
|
|
|
$
|
4,917
|
|
|
$
|
—
|
|
|
$
|
4,967
|
|
Investments
|
—
|
|
|
—
|
|
|
—
|
|
|
8,741
|
|
|
—
|
|
|
8,741
|
|
||||||
Accounts receivable, net
|
—
|
|
|
—
|
|
|
—
|
|
|
5,591
|
|
|
—
|
|
|
5,591
|
|
||||||
Inventories, net
|
—
|
|
|
155
|
|
|
—
|
|
|
3,361
|
|
|
(178
|
)
|
|
3,338
|
|
||||||
Intercompany receivable
|
63
|
|
|
—
|
|
|
—
|
|
|
12,618
|
|
|
(12,681
|
)
|
|
—
|
|
||||||
Other current assets
|
10
|
|
|
227
|
|
|
—
|
|
|
1,628
|
|
|
—
|
|
|
1,865
|
|
||||||
Current assets held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
371
|
|
|
—
|
|
|
371
|
|
||||||
Total current assets
|
73
|
|
|
427
|
|
|
5
|
|
|
37,227
|
|
|
(12,859
|
)
|
|
24,873
|
|
||||||
Property, plant, and equipment, net
|
—
|
|
|
1,311
|
|
|
—
|
|
|
3,050
|
|
|
—
|
|
|
4,361
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
38,515
|
|
|
—
|
|
|
38,515
|
|
||||||
Other intangible assets, net
|
—
|
|
|
20
|
|
|
—
|
|
|
23,387
|
|
|
—
|
|
|
23,407
|
|
||||||
Tax assets
|
—
|
|
|
727
|
|
|
—
|
|
|
782
|
|
|
—
|
|
|
1,509
|
|
||||||
Investment in subsidiaries
|
55,833
|
|
|
71,909
|
|
|
52,618
|
|
|
—
|
|
|
(180,360
|
)
|
|
—
|
|
||||||
Intercompany loans receivable
|
3,000
|
|
|
12,162
|
|
|
16,114
|
|
|
32,774
|
|
|
(64,050
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
434
|
|
|
—
|
|
|
798
|
|
|
—
|
|
|
1,232
|
|
||||||
Noncurrent assets held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
5,919
|
|
|
—
|
|
|
5,919
|
|
||||||
Total assets
|
$
|
58,906
|
|
|
$
|
86,990
|
|
|
$
|
68,737
|
|
|
$
|
142,452
|
|
|
$
|
(257,269
|
)
|
|
$
|
99,816
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current debt obligations
|
$
|
—
|
|
|
$
|
5,000
|
|
|
$
|
901
|
|
|
$
|
1,619
|
|
|
$
|
—
|
|
|
$
|
7,520
|
|
Accounts payable
|
—
|
|
|
304
|
|
|
—
|
|
|
1,427
|
|
|
—
|
|
|
1,731
|
|
||||||
Intercompany payable
|
12
|
|
|
12,669
|
|
|
—
|
|
|
—
|
|
|
(12,681
|
)
|
|
—
|
|
||||||
Accrued compensation
|
9
|
|
|
734
|
|
|
—
|
|
|
1,117
|
|
|
—
|
|
|
1,860
|
|
||||||
Accrued income taxes
|
13
|
|
|
—
|
|
|
—
|
|
|
620
|
|
|
—
|
|
|
633
|
|
||||||
Other accrued expenses
|
—
|
|
|
352
|
|
|
4
|
|
|
2,086
|
|
|
—
|
|
|
2,442
|
|
||||||
Current liabilities held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
34
|
|
||||||
Total current liabilities
|
34
|
|
|
19,059
|
|
|
905
|
|
|
6,903
|
|
|
(12,681
|
)
|
|
14,220
|
|
||||||
Long-term debt
|
—
|
|
|
21,782
|
|
|
1,842
|
|
|
2,297
|
|
|
—
|
|
|
25,921
|
|
||||||
Accrued compensation and retirement benefits
|
—
|
|
|
1,120
|
|
|
—
|
|
|
521
|
|
|
—
|
|
|
1,641
|
|
||||||
Accrued income taxes
|
10
|
|
|
1,658
|
|
|
—
|
|
|
737
|
|
|
—
|
|
|
2,405
|
|
||||||
Intercompany loans payable
|
8,568
|
|
|
13,151
|
|
|
17,160
|
|
|
25,171
|
|
|
(64,050
|
)
|
|
—
|
|
||||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
2,978
|
|
|
—
|
|
|
2,978
|
|
||||||
Other liabilities
|
—
|
|
|
153
|
|
|
—
|
|
|
1,362
|
|
|
—
|
|
|
1,515
|
|
||||||
Noncurrent liabilities held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
720
|
|
|
—
|
|
|
720
|
|
||||||
Total liabilities
|
8,612
|
|
|
56,923
|
|
|
19,907
|
|
|
40,689
|
|
|
(76,731
|
)
|
|
49,400
|
|
||||||
Shareholders' equity
|
50,294
|
|
|
30,067
|
|
|
48,830
|
|
|
101,641
|
|
|
(180,538
|
)
|
|
50,294
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
122
|
|
|
—
|
|
|
122
|
|
||||||
Total equity
|
50,294
|
|
|
30,067
|
|
|
48,830
|
|
|
101,763
|
|
|
(180,538
|
)
|
|
50,416
|
|
||||||
Total liabilities and equity
|
$
|
58,906
|
|
|
$
|
86,990
|
|
|
$
|
68,737
|
|
|
$
|
142,452
|
|
|
$
|
(257,269
|
)
|
|
$
|
99,816
|
|
(in millions)
|
Medtronic plc
|
|
Medtronic, Inc.
|
|
Medtronic Luxco
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments |
|
Total
|
||||||||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by (used in) operating activities
|
$
|
269
|
|
|
$
|
(743
|
)
|
|
$
|
128
|
|
|
$
|
1,990
|
|
|
$
|
—
|
|
|
$
|
1,644
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
(76
|
)
|
|
—
|
|
|
(76
|
)
|
||||||
Proceeds from sale of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
6,058
|
|
|
—
|
|
|
6,058
|
|
||||||
Additions to property, plant, and equipment
|
—
|
|
|
(132
|
)
|
|
—
|
|
|
(392
|
)
|
|
—
|
|
|
(524
|
)
|
||||||
Purchases of investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,685
|
)
|
|
—
|
|
|
(1,685
|
)
|
||||||
Sales and maturities of investments
|
—
|
|
|
—
|
|
|
—
|
|
|
2,354
|
|
|
—
|
|
|
2,354
|
|
||||||
Net (increase) decrease in intercompany loans
|
(112
|
)
|
|
2,204
|
|
|
(1,617
|
)
|
|
(7,695
|
)
|
|
7,220
|
|
|
—
|
|
||||||
Capital contribution paid
|
—
|
|
|
(12
|
)
|
|
(4,200
|
)
|
|
—
|
|
|
4,212
|
|
|
—
|
|
||||||
Other investing activities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||
Net cash provided by (used in) investing activities
|
(112
|
)
|
|
2,060
|
|
|
(5,817
|
)
|
|
(1,438
|
)
|
|
11,432
|
|
|
6,125
|
|
||||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquisition-related contingent consideration
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
(39
|
)
|
||||||
Change in current debt obligations, net
|
—
|
|
|
—
|
|
|
(202
|
)
|
|
12
|
|
|
—
|
|
|
(190
|
)
|
||||||
Issuance of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
||||||
Payments on long-term debt
|
—
|
|
|
(3,000
|
)
|
|
—
|
|
|
(1,161
|
)
|
|
—
|
|
|
(4,161
|
)
|
||||||
Dividends to shareholders
|
(1,247
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,247
|
)
|
||||||
Issuance of ordinary shares
|
230
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
230
|
|
||||||
Repurchase of ordinary shares
|
(1,888
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,888
|
)
|
||||||
Net intercompany loan borrowings (repayments)
|
2,748
|
|
|
1,685
|
|
|
6,708
|
|
|
(3,921
|
)
|
|
(7,220
|
)
|
|
—
|
|
||||||
Capital contribution received
|
—
|
|
|
—
|
|
|
—
|
|
|
4,212
|
|
|
(4,212
|
)
|
|
—
|
|
||||||
Other financing activities
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||
Net cash provided by (used in) financing activities
|
(157
|
)
|
|
(1,315
|
)
|
|
6,506
|
|
|
(879
|
)
|
|
(11,432
|
)
|
|
(7,277
|
)
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
70
|
|
||||||
Net change in cash and cash equivalents
|
—
|
|
|
2
|
|
|
817
|
|
|
(257
|
)
|
|
—
|
|
|
562
|
|
||||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
45
|
|
|
5
|
|
|
4,917
|
|
|
—
|
|
|
4,967
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
822
|
|
|
$
|
4,660
|
|
|
$
|
—
|
|
|
$
|
5,529
|
|
(in millions)
|
Medtronic plc
|
|
Medtronic, Inc.
|
|
Medtronic Luxco
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by (used in) operating activities
|
$
|
644
|
|
|
$
|
513
|
|
|
$
|
163
|
|
|
$
|
1,702
|
|
|
$
|
—
|
|
|
$
|
3,022
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquisitions, net of cash acquired
|
—
|
|
|
(918
|
)
|
|
—
|
|
|
(388
|
)
|
|
—
|
|
|
(1,306
|
)
|
||||||
Additions to property, plant, and equipment
|
—
|
|
|
(161
|
)
|
|
—
|
|
|
(437
|
)
|
|
—
|
|
|
(598
|
)
|
||||||
Purchases of investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,272
|
)
|
|
162
|
|
|
(2,110
|
)
|
||||||
Sales and maturities of investments
|
—
|
|
|
210
|
|
|
—
|
|
|
3,577
|
|
|
(162
|
)
|
|
3,625
|
|
||||||
Net (increase) decrease in intercompany loans
|
—
|
|
|
496
|
|
|
(2,117
|
)
|
|
(1,855
|
)
|
|
3,476
|
|
|
—
|
|
||||||
Capital contribution paid
|
—
|
|
|
(233
|
)
|
|
—
|
|
|
—
|
|
|
233
|
|
|
—
|
|
||||||
Other investing activities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
32
|
|
||||||
Net cash provided by (used in) investing activities
|
—
|
|
|
(606
|
)
|
|
(2,117
|
)
|
|
(1,343
|
)
|
|
3,709
|
|
|
(357
|
)
|
||||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquisition-related contingent consideration
|
—
|
|
|
—
|
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
|
(36
|
)
|
||||||
Change in current debt obligations, net
|
—
|
|
|
—
|
|
|
1,130
|
|
|
24
|
|
|
—
|
|
|
1,154
|
|
||||||
Proceeds from current debt obligations (maturities greater than 90 days)
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||||
Issuance of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
131
|
|
|
—
|
|
|
131
|
|
||||||
Payments on long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(252
|
)
|
|
—
|
|
|
(252
|
)
|
||||||
Dividends to shareholders
|
(1,192
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,192
|
)
|
||||||
Issuance of ordinary shares
|
260
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
260
|
|
||||||
Repurchase of ordinary shares
|
(2,794
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,794
|
)
|
||||||
Net intercompany loan borrowings (repayments)
|
3,082
|
|
|
109
|
|
|
928
|
|
|
(643
|
)
|
|
(3,476
|
)
|
|
—
|
|
||||||
Capital contribution received
|
—
|
|
|
—
|
|
|
—
|
|
|
233
|
|
|
(233
|
)
|
|
—
|
|
||||||
Other financing activities
|
—
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
—
|
|
|
74
|
|
||||||
Net cash provided by (used in) financing activities
|
(644
|
)
|
|
109
|
|
|
2,062
|
|
|
(469
|
)
|
|
(3,709
|
)
|
|
(2,651
|
)
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|
—
|
|
|
64
|
|
||||||
Net change in cash and cash equivalents
|
—
|
|
|
16
|
|
|
108
|
|
|
(46
|
)
|
|
—
|
|
|
78
|
|
||||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
55
|
|
|
—
|
|
|
2,821
|
|
|
—
|
|
|
2,876
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
71
|
|
|
$
|
108
|
|
|
$
|
2,775
|
|
|
$
|
—
|
|
|
$
|
2,954
|
|
(in millions)
|
Medtronic plc
|
|
CIFSA
|
|
CIFSA Subsidiary Guarantors
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,050
|
|
|
$
|
—
|
|
|
$
|
7,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of products sold
|
—
|
|
|
—
|
|
|
—
|
|
|
2,120
|
|
|
—
|
|
|
2,120
|
|
||||||
Research and development expense
|
—
|
|
|
—
|
|
|
—
|
|
|
555
|
|
|
—
|
|
|
555
|
|
||||||
Selling, general, and administrative expense
|
3
|
|
|
—
|
|
|
—
|
|
|
2,435
|
|
|
—
|
|
|
2,438
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
460
|
|
|
—
|
|
|
460
|
|
||||||
Restructuring charges, net
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||||
Acquisition-related items
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||||
Divestiture-related items
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
67
|
|
||||||
Gain on sale of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
(697
|
)
|
|
—
|
|
|
(697
|
)
|
||||||
Special charge
|
—
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|
—
|
|
|
80
|
|
||||||
Other (income) expense, net
|
12
|
|
|
—
|
|
|
—
|
|
|
99
|
|
|
—
|
|
|
111
|
|
||||||
Operating profit (loss)
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
1,916
|
|
|
—
|
|
|
1,901
|
|
||||||
Interest income
|
—
|
|
|
(16
|
)
|
|
(107
|
)
|
|
(128
|
)
|
|
151
|
|
|
(100
|
)
|
||||||
Interest expense
|
60
|
|
|
21
|
|
|
48
|
|
|
295
|
|
|
(151
|
)
|
|
273
|
|
||||||
Interest expense, net
|
60
|
|
|
5
|
|
|
(59
|
)
|
|
167
|
|
|
—
|
|
|
173
|
|
||||||
Equity in net (income) loss of subsidiaries
|
(2,091
|
)
|
|
(811
|
)
|
|
(2,032
|
)
|
|
—
|
|
|
4,934
|
|
|
—
|
|
||||||
Income before income taxes
|
2,016
|
|
|
806
|
|
|
2,091
|
|
|
1,749
|
|
|
(4,934
|
)
|
|
1,728
|
|
||||||
Income tax (benefit) provision
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(284
|
)
|
|
—
|
|
|
(285
|
)
|
||||||
Net income
|
2,017
|
|
|
806
|
|
|
2,091
|
|
|
2,033
|
|
|
(4,934
|
)
|
|
2,013
|
|
||||||
Net loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Net income attributable to Medtronic
|
2,017
|
|
|
806
|
|
|
2,091
|
|
|
2,037
|
|
|
(4,934
|
)
|
|
2,017
|
|
||||||
Other comprehensive income (loss), net of tax
|
(136
|
)
|
|
(295
|
)
|
|
(136
|
)
|
|
(136
|
)
|
|
567
|
|
|
(136
|
)
|
||||||
Other comprehensive loss attributable to
non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Total comprehensive income
|
$
|
1,881
|
|
|
$
|
511
|
|
|
$
|
1,955
|
|
|
$
|
1,901
|
|
|
$
|
(4,367
|
)
|
|
$
|
1,881
|
|
(in millions)
|
Medtronic plc
|
|
CIFSA
|
|
CIFSA Subsidiary Guarantors
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments |
|
Total
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,440
|
|
|
$
|
—
|
|
|
$
|
14,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of products sold
|
—
|
|
|
—
|
|
|
—
|
|
|
4,469
|
|
|
—
|
|
|
4,469
|
|
||||||
Research and development expense
|
—
|
|
|
—
|
|
|
—
|
|
|
1,103
|
|
|
—
|
|
|
1,103
|
|
||||||
Selling, general, and administrative expense
|
5
|
|
|
—
|
|
|
1
|
|
|
4,917
|
|
|
—
|
|
|
4,923
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
914
|
|
|
—
|
|
|
914
|
|
||||||
Restructuring charges, net
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
||||||
Acquisition-related items
|
—
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
51
|
|
||||||
Divestiture-related items
|
—
|
|
|
—
|
|
|
—
|
|
|
114
|
|
|
—
|
|
|
114
|
|
||||||
Gain on sale of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
(697
|
)
|
|
—
|
|
|
(697
|
)
|
||||||
Special charge
|
—
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|
—
|
|
|
80
|
|
||||||
Other (income) expense, net
|
25
|
|
|
1
|
|
|
—
|
|
|
151
|
|
|
—
|
|
|
177
|
|
||||||
Operating profit (loss)
|
(30
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
3,322
|
|
|
—
|
|
|
3,290
|
|
||||||
Interest income
|
—
|
|
|
(32
|
)
|
|
(219
|
)
|
|
(239
|
)
|
|
298
|
|
|
(192
|
)
|
||||||
Interest expense
|
109
|
|
|
44
|
|
|
82
|
|
|
622
|
|
|
(298
|
)
|
|
559
|
|
||||||
Interest expense, net
|
109
|
|
|
12
|
|
|
(137
|
)
|
|
383
|
|
|
—
|
|
|
367
|
|
||||||
Equity in net (income) loss of subsidiaries
|
(3,169
|
)
|
|
(1,200
|
)
|
|
(3,033
|
)
|
|
—
|
|
|
7,402
|
|
|
—
|
|
||||||
Income before income taxes
|
3,030
|
|
|
1,187
|
|
|
3,169
|
|
|
2,939
|
|
|
(7,402
|
)
|
|
2,923
|
|
||||||
Income tax (benefit) provision
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(96
|
)
|
|
—
|
|
|
(99
|
)
|
||||||
Net income
|
3,033
|
|
|
1,187
|
|
|
3,169
|
|
|
3,035
|
|
|
(7,402
|
)
|
|
3,022
|
|
||||||
Net loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||||
Net income attributable to Medtronic
|
3,033
|
|
|
1,187
|
|
|
3,169
|
|
|
3,046
|
|
|
(7,402
|
)
|
|
3,033
|
|
||||||
Other comprehensive loss, net of tax
|
553
|
|
|
(201
|
)
|
|
553
|
|
|
553
|
|
|
(905
|
)
|
|
553
|
|
||||||
Other comprehensive loss attributable to
noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||||
Total comprehensive income (loss)
|
$
|
3,586
|
|
|
$
|
986
|
|
|
$
|
3,722
|
|
|
$
|
3,599
|
|
|
$
|
(8,307
|
)
|
|
$
|
3,586
|
|
(in millions)
|
Medtronic plc
|
|
CIFSA
|
|
CIFSA Subsidiary Guarantors
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments |
|
Total
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,345
|
|
|
$
|
—
|
|
|
$
|
7,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of products sold
|
—
|
|
|
—
|
|
|
—
|
|
|
2,326
|
|
|
—
|
|
|
2,326
|
|
||||||
Research and development expense
|
—
|
|
|
—
|
|
|
—
|
|
|
554
|
|
|
—
|
|
|
554
|
|
||||||
Selling, general, and administrative expense
|
3
|
|
|
—
|
|
|
1
|
|
|
2,412
|
|
|
—
|
|
|
2,416
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
500
|
|
|
—
|
|
|
500
|
|
||||||
Restructuring charges, net
|
—
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|
—
|
|
|
47
|
|
||||||
Acquisition-related items
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
28
|
|
||||||
Other (income) expense, net
|
(86
|
)
|
|
—
|
|
|
—
|
|
|
175
|
|
|
—
|
|
|
89
|
|
||||||
Operating profit (loss)
|
83
|
|
|
—
|
|
|
(1
|
)
|
|
1,303
|
|
|
—
|
|
|
1,385
|
|
||||||
Interest income
|
—
|
|
|
(18
|
)
|
|
(166
|
)
|
|
(102
|
)
|
|
195
|
|
|
(91
|
)
|
||||||
Interest expense
|
25
|
|
|
23
|
|
|
11
|
|
|
400
|
|
|
(195
|
)
|
|
264
|
|
||||||
Interest expense, net
|
25
|
|
|
5
|
|
|
(155
|
)
|
|
298
|
|
|
—
|
|
|
173
|
|
||||||
Equity in net (income) loss of subsidiaries
|
(1,055
|
)
|
|
(445
|
)
|
|
(901
|
)
|
|
—
|
|
|
2,401
|
|
|
—
|
|
||||||
Income before income taxes
|
1,113
|
|
|
440
|
|
|
1,055
|
|
|
1,005
|
|
|
(2,401
|
)
|
|
1,212
|
|
||||||
Income tax (benefit) provision
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
103
|
|
|
—
|
|
|
101
|
|
||||||
Net income
|
1,115
|
|
|
440
|
|
|
1,055
|
|
|
902
|
|
|
(2,401
|
)
|
|
1,111
|
|
||||||
Net loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Net income attributable to Medtronic
|
1,115
|
|
|
440
|
|
|
1,055
|
|
|
906
|
|
|
(2,401
|
)
|
|
1,115
|
|
||||||
Other comprehensive income (loss), net of tax
|
(304
|
)
|
|
(23
|
)
|
|
(304
|
)
|
|
(304
|
)
|
|
631
|
|
|
(304
|
)
|
||||||
Other comprehensive loss attributable to
noncontrolling interests |
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Total comprehensive income
|
$
|
811
|
|
|
$
|
417
|
|
|
$
|
751
|
|
|
$
|
602
|
|
|
$
|
(1,770
|
)
|
|
$
|
811
|
|
(in millions)
|
Medtronic plc
|
|
CIFSA
|
|
CIFSA Subsidiary Guarantors
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments |
|
Total
|
||||||||||||
Net sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,511
|
|
|
$
|
—
|
|
|
$
|
14,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of products sold
|
—
|
|
|
—
|
|
|
—
|
|
|
4,587
|
|
|
—
|
|
|
4,587
|
|
||||||
Research and development expense
|
—
|
|
|
—
|
|
|
—
|
|
|
1,110
|
|
|
—
|
|
|
1,110
|
|
||||||
Selling, general, and administrative expense
|
6
|
|
|
—
|
|
|
1
|
|
|
4,837
|
|
|
—
|
|
|
4,844
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
987
|
|
|
—
|
|
|
987
|
|
||||||
Restructuring charges, net
|
—
|
|
|
—
|
|
|
—
|
|
|
141
|
|
|
—
|
|
|
141
|
|
||||||
Certain litigation charges
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
—
|
|
|
82
|
|
||||||
Acquisition-related items
|
—
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|
—
|
|
|
80
|
|
||||||
Other (income) expense, net
|
(74
|
)
|
|
—
|
|
|
—
|
|
|
202
|
|
|
—
|
|
|
128
|
|
||||||
Operating profit (loss)
|
68
|
|
|
—
|
|
|
(1
|
)
|
|
2,485
|
|
|
—
|
|
|
2,552
|
|
||||||
Interest income
|
—
|
|
|
(47
|
)
|
|
(324
|
)
|
|
(207
|
)
|
|
394
|
|
|
(184
|
)
|
||||||
Interest expense
|
41
|
|
|
56
|
|
|
13
|
|
|
820
|
|
|
(394
|
)
|
|
536
|
|
||||||
Interest expense, net
|
41
|
|
|
9
|
|
|
(311
|
)
|
|
613
|
|
|
—
|
|
|
352
|
|
||||||
Equity in net (income) loss of subsidiaries
|
(2,013
|
)
|
|
(1,249
|
)
|
|
(1,703
|
)
|
|
—
|
|
|
4,965
|
|
|
—
|
|
||||||
Income before income taxes
|
2,040
|
|
|
1,240
|
|
|
2,013
|
|
|
1,872
|
|
|
(4,965
|
)
|
|
2,200
|
|
||||||
Income tax (benefit) provision
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
160
|
|
||||||
Net income
|
2,044
|
|
|
1,240
|
|
|
2,013
|
|
|
1,708
|
|
|
(4,965
|
)
|
|
2,040
|
|
||||||
Net loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Net income attributable to Medtronic
|
2,044
|
|
|
1,240
|
|
|
2,013
|
|
|
1,712
|
|
|
(4,965
|
)
|
|
2,044
|
|
||||||
Other comprehensive income (loss), net of tax
|
(460
|
)
|
|
19
|
|
|
(460
|
)
|
|
(460
|
)
|
|
901
|
|
|
(460
|
)
|
||||||
Other comprehensive loss attributable to
non-controlling interests |
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Total comprehensive income
|
$
|
1,584
|
|
|
$
|
1,259
|
|
|
$
|
1,553
|
|
|
$
|
1,252
|
|
|
$
|
(4,064
|
)
|
|
$
|
1,584
|
|
(in millions)
|
Medtronic plc
|
|
CIFSA
|
|
CIFSA Subsidiary Guarantors
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments |
|
Total
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
823
|
|
|
$
|
4,706
|
|
|
$
|
—
|
|
|
$
|
5,529
|
|
Investments
|
—
|
|
|
—
|
|
|
—
|
|
|
7,997
|
|
|
—
|
|
|
7,997
|
|
||||||
Accounts receivable, net
|
—
|
|
|
—
|
|
|
—
|
|
|
5,752
|
|
|
—
|
|
|
5,752
|
|
||||||
Inventories, net
|
—
|
|
|
—
|
|
|
—
|
|
|
3,638
|
|
|
—
|
|
|
3,638
|
|
||||||
Intercompany receivable
|
55
|
|
|
—
|
|
|
60
|
|
|
11
|
|
|
(126
|
)
|
|
—
|
|
||||||
Other current assets
|
10
|
|
|
—
|
|
|
1
|
|
|
2,235
|
|
|
—
|
|
|
2,246
|
|
||||||
Total current assets
|
65
|
|
|
—
|
|
|
884
|
|
|
24,339
|
|
|
(126
|
)
|
|
25,162
|
|
||||||
Property, plant, and equipment, net
|
—
|
|
|
—
|
|
|
—
|
|
|
4,441
|
|
|
—
|
|
|
4,441
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
39,077
|
|
|
—
|
|
|
39,077
|
|
||||||
Other intangible assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
22,625
|
|
|
—
|
|
|
22,625
|
|
||||||
Tax assets
|
—
|
|
|
—
|
|
|
—
|
|
|
1,749
|
|
|
—
|
|
|
1,749
|
|
||||||
Investment in subsidiaries
|
59,762
|
|
|
35,680
|
|
|
59,284
|
|
|
—
|
|
|
(154,726
|
)
|
|
—
|
|
||||||
Intercompany loans receivable
|
3,112
|
|
|
2,332
|
|
|
19,005
|
|
|
23,967
|
|
|
(48,416
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
—
|
|
|
—
|
|
|
1,404
|
|
|
—
|
|
|
1,404
|
|
||||||
Total assets
|
$
|
62,939
|
|
|
$
|
38,012
|
|
|
$
|
79,173
|
|
|
$
|
117,602
|
|
|
$
|
(203,268
|
)
|
|
$
|
94,458
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current debt obligations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
699
|
|
|
$
|
2,432
|
|
|
$
|
—
|
|
|
$
|
3,131
|
|
Accounts payable
|
—
|
|
|
—
|
|
|
—
|
|
|
1,718
|
|
|
—
|
|
|
1,718
|
|
||||||
Intercompany payable
|
11
|
|
|
—
|
|
|
—
|
|
|
115
|
|
|
(126
|
)
|
|
—
|
|
||||||
Accrued compensation
|
6
|
|
|
—
|
|
|
—
|
|
|
1,496
|
|
|
—
|
|
|
1,502
|
|
||||||
Accrued income taxes
|
14
|
|
|
—
|
|
|
—
|
|
|
858
|
|
|
—
|
|
|
872
|
|
||||||
Other accrued expenses
|
88
|
|
|
21
|
|
|
8
|
|
|
3,156
|
|
|
—
|
|
|
3,273
|
|
||||||
Total current liabilities
|
119
|
|
|
21
|
|
|
707
|
|
|
9,775
|
|
|
(126
|
)
|
|
10,496
|
|
||||||
Long-term debt
|
—
|
|
|
2,122
|
|
|
1,842
|
|
|
21,977
|
|
|
—
|
|
|
25,941
|
|
||||||
Accrued compensation and retirement benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
1,475
|
|
|
—
|
|
|
1,475
|
|
||||||
Accrued income taxes
|
10
|
|
|
—
|
|
|
—
|
|
|
2,184
|
|
|
—
|
|
|
2,194
|
|
||||||
Intercompany loans payable
|
11,316
|
|
|
1,374
|
|
|
23,868
|
|
|
11,858
|
|
|
(48,416
|
)
|
|
—
|
|
||||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
1,841
|
|
|
—
|
|
|
1,841
|
|
||||||
Other liabilities
|
25
|
|
|
—
|
|
|
1
|
|
|
907
|
|
|
—
|
|
|
933
|
|
||||||
Total liabilities
|
11,470
|
|
|
3,517
|
|
|
26,418
|
|
|
50,017
|
|
|
(48,542
|
)
|
|
42,880
|
|
||||||
Shareholders’ equity
|
51,469
|
|
|
34,495
|
|
|
52,755
|
|
|
67,476
|
|
|
(154,726
|
)
|
|
51,469
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
109
|
|
|
—
|
|
|
109
|
|
||||||
Total equity
|
51,469
|
|
|
34,495
|
|
|
52,755
|
|
|
67,585
|
|
|
(154,726
|
)
|
|
51,578
|
|
||||||
Total liabilities and equity
|
$
|
62,939
|
|
|
$
|
38,012
|
|
|
$
|
79,173
|
|
|
$
|
117,602
|
|
|
$
|
(203,268
|
)
|
|
$
|
94,458
|
|
(in millions)
|
Medtronic plc
|
|
CIFSA
|
|
CIFSA Subsidiary Guarantors
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
33
|
|
|
$
|
5
|
|
|
$
|
4,929
|
|
|
$
|
—
|
|
|
$
|
4,967
|
|
Investments
|
—
|
|
|
—
|
|
|
—
|
|
|
8,741
|
|
|
—
|
|
|
8,741
|
|
||||||
Accounts receivable, net
|
—
|
|
|
—
|
|
|
—
|
|
|
5,591
|
|
|
—
|
|
|
5,591
|
|
||||||
Inventories, net
|
—
|
|
|
—
|
|
|
—
|
|
|
3,338
|
|
|
—
|
|
|
3,338
|
|
||||||
Intercompany receivable
|
63
|
|
|
—
|
|
|
60
|
|
|
12
|
|
|
(135
|
)
|
|
—
|
|
||||||
Other current assets
|
10
|
|
|
—
|
|
|
—
|
|
|
1,855
|
|
|
—
|
|
|
1,865
|
|
||||||
Current assets held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
371
|
|
|
—
|
|
|
371
|
|
||||||
Total current assets
|
73
|
|
|
33
|
|
|
65
|
|
|
24,837
|
|
|
(135
|
)
|
|
24,873
|
|
||||||
Property, plant, and equipment, net
|
—
|
|
|
—
|
|
|
—
|
|
|
4,361
|
|
|
—
|
|
|
4,361
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
38,515
|
|
|
—
|
|
|
38,515
|
|
||||||
Other intangible assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
23,407
|
|
|
—
|
|
|
23,407
|
|
||||||
Tax assets
|
—
|
|
|
—
|
|
|
—
|
|
|
1,509
|
|
|
—
|
|
|
1,509
|
|
||||||
Investment in subsidiaries
|
55,833
|
|
|
31,055
|
|
|
51,294
|
|
|
—
|
|
|
(138,182
|
)
|
|
—
|
|
||||||
Intercompany loans receivable
|
3,000
|
|
|
2,978
|
|
|
17,383
|
|
|
17,260
|
|
|
(40,621
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
—
|
|
|
—
|
|
|
1,232
|
|
|
—
|
|
|
1,232
|
|
||||||
Noncurrent assets held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
5,919
|
|
|
—
|
|
|
5,919
|
|
||||||
Total assets
|
$
|
58,906
|
|
|
$
|
34,066
|
|
|
$
|
68,742
|
|
|
$
|
117,040
|
|
|
$
|
(178,938
|
)
|
|
$
|
99,816
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current debt obligations
|
$
|
—
|
|
|
$
|
1,176
|
|
|
$
|
901
|
|
|
$
|
5,443
|
|
|
$
|
—
|
|
|
$
|
7,520
|
|
Accounts payable
|
—
|
|
|
—
|
|
|
—
|
|
|
1,731
|
|
|
—
|
|
|
1,731
|
|
||||||
Intercompany payable
|
12
|
|
|
—
|
|
|
—
|
|
|
123
|
|
|
(135
|
)
|
|
—
|
|
||||||
Accrued compensation
|
9
|
|
|
—
|
|
|
—
|
|
|
1,851
|
|
|
—
|
|
|
1,860
|
|
||||||
Accrued income taxes
|
13
|
|
|
—
|
|
|
—
|
|
|
620
|
|
|
—
|
|
|
633
|
|
||||||
Other accrued expenses
|
—
|
|
|
23
|
|
|
8
|
|
|
2,411
|
|
|
—
|
|
|
2,442
|
|
||||||
Current liabilities held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
34
|
|
||||||
Total current liabilities
|
34
|
|
|
1,199
|
|
|
909
|
|
|
12,213
|
|
|
(135
|
)
|
|
14,220
|
|
||||||
Long-term debt
|
—
|
|
|
2,133
|
|
|
1,842
|
|
|
21,946
|
|
|
—
|
|
|
25,921
|
|
||||||
Accrued compensation and retirement benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
1,641
|
|
|
—
|
|
|
1,641
|
|
||||||
Accrued income taxes
|
10
|
|
|
—
|
|
|
—
|
|
|
2,395
|
|
|
—
|
|
|
2,405
|
|
||||||
Intercompany loans payable
|
8,568
|
|
|
1,369
|
|
|
17,161
|
|
|
13,523
|
|
|
(40,621
|
)
|
|
—
|
|
||||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
2,978
|
|
|
—
|
|
|
2,978
|
|
||||||
Other liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
1,515
|
|
|
—
|
|
|
1,515
|
|
||||||
Noncurrent liabilities held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
720
|
|
|
—
|
|
|
720
|
|
||||||
Total liabilities
|
8,612
|
|
|
4,701
|
|
|
19,912
|
|
|
56,931
|
|
|
(40,756
|
)
|
|
49,400
|
|
||||||
Shareholders' equity
|
50,294
|
|
|
29,365
|
|
|
48,830
|
|
|
59,987
|
|
|
(138,182
|
)
|
|
50,294
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
122
|
|
|
—
|
|
|
122
|
|
||||||
Total Equity
|
50,294
|
|
|
29,365
|
|
|
48,830
|
|
|
60,109
|
|
|
(138,182
|
)
|
|
50,416
|
|
||||||
Total liabilities and equity
|
$
|
58,906
|
|
|
$
|
34,066
|
|
|
$
|
68,742
|
|
|
$
|
117,040
|
|
|
$
|
(178,938
|
)
|
|
$
|
99,816
|
|
(in millions)
|
Medtronic plc
|
|
CIFSA
|
|
CIFSA Subsidiary Guarantors
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by (used in) operating activities
|
$
|
269
|
|
|
$
|
997
|
|
|
$
|
135
|
|
|
$
|
1,291
|
|
|
$
|
(1,048
|
)
|
|
$
|
1,644
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
(76
|
)
|
|
—
|
|
|
(76
|
)
|
||||||
Proceeds from sale of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
6,058
|
|
|
—
|
|
|
6,058
|
|
||||||
Additions to property, plant, and equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
(524
|
)
|
|
—
|
|
|
(524
|
)
|
||||||
Purchases of investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,685
|
)
|
|
—
|
|
|
(1,685
|
)
|
||||||
Sales and maturities of investments
|
—
|
|
|
—
|
|
|
—
|
|
|
2,354
|
|
|
—
|
|
|
2,354
|
|
||||||
Net (increase) decrease in intercompany loans
|
(112
|
)
|
|
646
|
|
|
(1,622
|
)
|
|
(6,707
|
)
|
|
7,795
|
|
|
—
|
|
||||||
Capital contribution paid
|
—
|
|
|
(531
|
)
|
|
(4,200
|
)
|
|
—
|
|
|
4,731
|
|
|
—
|
|
||||||
Other investing activities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||
Net cash provided by (used in) investing activities
|
(112
|
)
|
|
115
|
|
|
(5,822
|
)
|
|
(582
|
)
|
|
12,526
|
|
|
6,125
|
|
||||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquisition-related contingent consideration
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
(39
|
)
|
||||||
Change in current debt obligations, net
|
—
|
|
|
—
|
|
|
(202
|
)
|
|
12
|
|
|
—
|
|
|
(190
|
)
|
||||||
Issuance of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
||||||
Payments on long-term debt
|
—
|
|
|
(1,150
|
)
|
|
—
|
|
|
(3,011
|
)
|
|
—
|
|
|
(4,161
|
)
|
||||||
Dividends to shareholders
|
(1,247
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,247
|
)
|
||||||
Issuance of ordinary shares
|
230
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
230
|
|
||||||
Repurchase of ordinary shares
|
(1,888
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,888
|
)
|
||||||
Net intercompany loan borrowings (repayments)
|
2,748
|
|
|
5
|
|
|
6,707
|
|
|
(1,665
|
)
|
|
(7,795
|
)
|
|
—
|
|
||||||
Intercompany dividend paid
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,048
|
)
|
|
1,048
|
|
|
—
|
|
||||||
Capital contribution received
|
—
|
|
|
—
|
|
|
—
|
|
|
4,731
|
|
|
(4,731
|
)
|
|
—
|
|
||||||
Other financing activities
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||
Net cash provided by (used in) financing activities
|
(157
|
)
|
|
(1,145
|
)
|
|
6,505
|
|
|
(1,002
|
)
|
|
(11,478
|
)
|
|
(7,277
|
)
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
70
|
|
||||||
Net change in cash and cash equivalents
|
—
|
|
|
(33
|
)
|
|
818
|
|
|
(223
|
)
|
|
—
|
|
|
562
|
|
||||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
33
|
|
|
5
|
|
|
4,929
|
|
|
—
|
|
|
4,967
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
823
|
|
|
$
|
4,706
|
|
|
$
|
—
|
|
|
$
|
5,529
|
|
(in millions)
|
Medtronic plc
|
|
CIFSA
|
|
CIFSA Subsidiary Guarantors
|
|
Subsidiary Non-guarantors
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by (used in) operating activities
|
$
|
644
|
|
|
$
|
879
|
|
|
$
|
162
|
|
|
$
|
2,257
|
|
|
$
|
(920
|
)
|
|
$
|
3,022
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,306
|
)
|
|
—
|
|
|
(1,306
|
)
|
||||||
Additions to property, plant, and equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
(598
|
)
|
|
—
|
|
|
(598
|
)
|
||||||
Purchases of investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,110
|
)
|
|
—
|
|
|
(2,110
|
)
|
||||||
Sales and maturities of investments
|
—
|
|
|
—
|
|
|
—
|
|
|
3,625
|
|
|
—
|
|
|
3,625
|
|
||||||
Net (increase) decrease in intercompany loans
|
—
|
|
|
3,198
|
|
|
(2,117
|
)
|
|
2,707
|
|
|
(3,788
|
)
|
|
—
|
|
||||||
Capital contributions paid
|
—
|
|
|
(325
|
)
|
|
—
|
|
|
—
|
|
|
325
|
|
|
—
|
|
||||||
Other investing activities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
32
|
|
||||||
Net cash provided by (used in) investing activities
|
—
|
|
|
2,873
|
|
|
(2,117
|
)
|
|
2,350
|
|
|
(3,463
|
)
|
|
(357
|
)
|
||||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquisition-related contingent consideration
|
—
|
|
|
—
|
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
|
(36
|
)
|
||||||
Change in current debt obligations, net
|
—
|
|
|
—
|
|
|
1,130
|
|
|
24
|
|
|
—
|
|
|
1,154
|
|
||||||
Proceeds from current debt obligations (maturities greater than 90 days)
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||||
Issuance of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
131
|
|
|
—
|
|
|
131
|
|
||||||
Payments on long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(252
|
)
|
|
—
|
|
|
(252
|
)
|
||||||
Dividends to shareholders
|
(1,192
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,192
|
)
|
||||||
Issuance of ordinary shares
|
260
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
260
|
|
||||||
Repurchase of ordinary shares
|
(2,794
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,794
|
)
|
||||||
Net intercompany loan borrowings (repayments)
|
3,082
|
|
|
(3,634
|
)
|
|
929
|
|
|
(4,165
|
)
|
|
3,788
|
|
|
—
|
|
||||||
Intercompany dividend paid
|
—
|
|
|
—
|
|
|
—
|
|
|
(920
|
)
|
|
920
|
|
|
—
|
|
||||||
Capital contributions received
|
—
|
|
|
—
|
|
|
—
|
|
|
325
|
|
|
(325
|
)
|
|
—
|
|
||||||
Other financing activities
|
—
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
—
|
|
|
74
|
|
||||||
Net cash provided by (used in) financing activities
|
(644
|
)
|
|
(3,634
|
)
|
|
2,063
|
|
|
(4,819
|
)
|
|
4,383
|
|
|
(2,651
|
)
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|
—
|
|
|
64
|
|
||||||
Net change in cash and cash equivalents
|
—
|
|
|
118
|
|
|
108
|
|
|
(148
|
)
|
|
—
|
|
|
78
|
|
||||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
208
|
|
|
—
|
|
|
2,668
|
|
|
—
|
|
|
2,876
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
326
|
|
|
$
|
108
|
|
|
$
|
2,520
|
|
|
$
|
—
|
|
|
$
|
2,954
|
|
|
Three months ended
|
|
|
|
Six months ended
|
|
|
||||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
% Change
|
|
October 27, 2017
|
|
October 28, 2016
|
|
% Change
|
||||||||||
Cardiac and Vascular Group
|
$
|
2,773
|
|
|
$
|
2,584
|
|
|
7
|
%
|
|
$
|
5,419
|
|
|
$
|
5,102
|
|
|
6
|
%
|
Minimally Invasive Therapies Group
|
1,952
|
|
|
2,473
|
|
|
(21
|
)
|
|
4,438
|
|
|
4,897
|
|
|
(9
|
)
|
||||
Restorative Therapies Group
|
1,863
|
|
|
1,826
|
|
|
2
|
|
|
3,672
|
|
|
3,598
|
|
|
2
|
|
||||
Diabetes Group
|
462
|
|
|
462
|
|
|
—
|
|
|
911
|
|
|
914
|
|
|
—
|
|
||||
Total Net Sales
|
$
|
7,050
|
|
|
$
|
7,345
|
|
|
(4
|
)%
|
|
$
|
14,440
|
|
|
$
|
14,511
|
|
|
—
|
%
|
|
Three months ended October 27, 2017
|
|||||||||||||
(in millions)
|
Income Before Income Taxes
|
|
Diluted EPS
(1)
|
|
Income tax (benefit) provision
(2)
|
|
Effective Tax Rate
|
|||||||
GAAP
|
$
|
1,728
|
|
|
$
|
1.48
|
|
|
$
|
(285
|
)
|
|
(16.5
|
)%
|
Non-GAAP Adjustments:
(3)
|
|
|
|
|
|
|
|
|||||||
Restructuring charges, net
|
18
|
|
|
0.01
|
|
|
4
|
|
|
22.2
|
|
|||
Acquisition-related items
|
18
|
|
|
0.01
|
|
|
10
|
|
|
55.6
|
|
|||
Divestiture-related items
(a)
|
67
|
|
|
0.04
|
|
|
7
|
|
|
10.4
|
|
|||
Gain on sale of businesses
(b)
|
(697
|
)
|
|
(0.51
|
)
|
|
—
|
|
|
—
|
|
|||
Hurricane Maria
(c)
|
34
|
|
|
0.02
|
|
|
1
|
|
|
2.9
|
|
|||
Special charge
(d)
|
80
|
|
|
0.04
|
|
|
29
|
|
|
36.3
|
|
|||
Amortization of intangible assets
|
460
|
|
|
0.27
|
|
|
86
|
|
|
18.7
|
|
|||
Certain tax adjustments, net
(e)
|
—
|
|
|
(0.30
|
)
|
|
404
|
|
|
—
|
|
|||
Non-GAAP
|
$
|
1,708
|
|
|
$
|
1.07
|
|
|
$
|
256
|
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|||||||
|
Three months ended October 28, 2016
|
|||||||||||||
(in millions)
|
Income Before Income Taxes
|
|
Diluted EPS
(1)
|
|
Income tax (benefit) provision
(2)
|
|
Effective Tax Rate
|
|||||||
GAAP
|
$
|
1,212
|
|
|
$
|
0.80
|
|
|
$
|
101
|
|
|
8.3
|
%
|
Non-GAAP Adjustments:
(3)
|
|
|
|
|
|
|
|
|||||||
Impact of inventory step-up
(f)
|
38
|
|
|
0.02
|
|
|
14
|
|
|
36.8
|
|
|||
Restructuring charges, net
|
47
|
|
|
0.03
|
|
|
12
|
|
|
25.5
|
|
|||
Acquisition-related items
|
28
|
|
|
—
|
|
|
26
|
|
|
92.9
|
|
|||
Amortization of intangible assets
|
500
|
|
|
0.28
|
|
|
115
|
|
|
23.0
|
|
|||
Non-GAAP
|
$
|
1,825
|
|
|
$
|
1.12
|
|
|
$
|
268
|
|
|
14.7
|
%
|
(1)
|
The data in this schedule has been intentionally rounded to the nearest $0.01 and, therefore, may not sum.
|
(2)
|
The tax effect of each Non-GAAP Adjustment is based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
|
(3)
|
Non-GAAP adjustments relate to charges or benefits that management believes may or may not recur with similar materiality or impact on results in future periods.
|
(a)
|
The transaction expenses incurred in connection with the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses.
|
(b)
|
The gain on the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses.
|
(c)
|
The charges represent idle facility costs, asset write-downs, and humanitarian efforts related to Hurricane Maria.
|
(d)
|
The charge represents a commitment to fund the Medtronic Foundation.
|
(e)
|
The net benefit primarily relates to the tax effect from the intercompany sale of intellectual property.
|
(f)
|
Represents amortization of step-up in fair value of inventory acquired in connection with the HeartWare acquisition.
|
|
Six months ended October 27, 2017
|
|||||||||||||
(in millions)
|
Income Before Income Taxes
|
|
Diluted EPS
(1)
|
|
Income tax (benefit) provision
(2)
|
|
Effective Tax Rate
|
|||||||
GAAP
|
$
|
2,923
|
|
|
$
|
2.21
|
|
|
$
|
(99
|
)
|
|
(3.4
|
)%
|
Non-GAAP Adjustments:
(3)
|
|
|
|
|
|
|
|
|||||||
Restructuring charges, net
|
32
|
|
|
0.02
|
|
|
6
|
|
|
18.8
|
|
|||
Acquisition-related items
|
71
|
|
|
0.03
|
|
|
24
|
|
|
33.8
|
|
|||
Divestiture-related items
(a)
|
115
|
|
|
0.07
|
|
|
15
|
|
|
13.0
|
|
|||
Gain on sale of businesses
(b)
|
(697
|
)
|
|
(0.51
|
)
|
|
—
|
|
|
—
|
|
|||
Hurricane Maria
(c)
|
34
|
|
|
0.02
|
|
|
1
|
|
|
2.9
|
|
|||
Special charge
(d)
|
80
|
|
|
0.04
|
|
|
29
|
|
|
36.3
|
|
|||
Amortization of intangible assets
|
914
|
|
|
0.55
|
|
|
166
|
|
|
18.2
|
|
|||
Certain tax adjustments, net
(e)
|
—
|
|
|
(0.25
|
)
|
|
344
|
|
|
—
|
|
|||
Non-GAAP
|
$
|
3,472
|
|
|
$
|
2.19
|
|
|
$
|
486
|
|
|
14.0
|
%
|
|
|
|
|
|
|
|
|
|||||||
|
Six months ended October 28, 2016
|
|||||||||||||
(in millions)
|
Income Before Income Taxes
|
|
Diluted EPS
(1)
|
|
Income tax (benefit) provision
(2)
|
|
Effective Tax Rate
|
|||||||
GAAP
|
$
|
2,200
|
|
|
$
|
1.46
|
|
|
160
|
|
|
7.3
|
%
|
|
Non-GAAP Adjustments:
(3)
|
|
|
|
|
|
|
|
|||||||
Impact of inventory step-up
(f)
|
38
|
|
|
0.02
|
|
|
14
|
|
|
36.8
|
|
|||
Restructuring charges, net
|
151
|
|
|
0.08
|
|
|
38
|
|
|
25.2
|
|
|||
Certain litigation charges
|
82
|
|
|
0.04
|
|
|
30
|
|
|
36.6
|
|
|||
Acquisition-related items
|
80
|
|
|
0.03
|
|
|
39
|
|
|
48.8
|
|
|||
Amortization of intangible assets
|
987
|
|
|
0.54
|
|
|
226
|
|
|
22.9
|
|
|||
Certain tax adjustments, net
(g)
|
—
|
|
|
(0.02
|
)
|
|
31
|
|
|
—
|
|
|||
Non-GAAP
|
$
|
3,538
|
|
|
$
|
2.15
|
|
|
$
|
538
|
|
|
15.2
|
%
|
(1)
|
The data in this schedule has been intentionally rounded to the nearest $0.01 and, therefore, may not sum.
|
(2)
|
The tax effect of each Non-GAAP Adjustment is based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
|
(3)
|
Non-GAAP adjustments relate to charges or gains that management believes may or may not recur with similar materiality or impact on results in future periods.
|
(a)
|
The transaction expenses incurred in connection with the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses.
|
(b)
|
The gain on the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses.
|
(c)
|
The charges represent idle facility costs, asset write-downs, and humanitarian efforts related to Hurricane Maria.
|
(d)
|
The charge represents a commitment to fund the Medtronic Foundation.
|
(e)
|
The net benefit primarily relates to the tax effect from the intercompany sale of intellectual property, which is partially offset by the impacts from the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses.
|
(f)
|
Represents amortization of step-up in fair value of inventory acquired in connection with the HeartWare acquisition.
|
(g)
|
The net benefit in certain tax adjustments relates to the resolution of various tax positions from prior years and other certain tax charges recorded in connection with the redemption of an intercompany minority interest.
|
|
Three months ended
|
|
|
|
Six months ended
|
|
|
||||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
% Change
|
|
October 27, 2017
|
|
October 28, 2016
|
|
% Change
|
||||||||||
Cardiac Rhythm & Heart Failure
|
$
|
1,467
|
|
|
$
|
1,400
|
|
|
5
|
%
|
|
$
|
2,857
|
|
|
$
|
2,734
|
|
|
4
|
%
|
Coronary & Structural Heart
|
854
|
|
|
753
|
|
|
13
|
|
|
1,671
|
|
|
1,515
|
|
|
10
|
|
||||
Aortic & Peripheral Vascular
|
452
|
|
|
431
|
|
|
5
|
|
|
891
|
|
|
853
|
|
|
4
|
|
||||
Cardiac and Vascular Group
|
2,773
|
|
|
2,584
|
|
|
7
|
|
|
5,419
|
|
|
5,102
|
|
|
6
|
|
||||
Surgical Innovations
|
1,334
|
|
|
1,271
|
|
|
5
|
|
|
2,640
|
|
|
2,530
|
|
|
4
|
|
||||
Respiratory, Gastrointestinal & Renal
|
618
|
|
|
1,202
|
|
|
(49
|
)
|
|
1,798
|
|
|
2,367
|
|
|
(24
|
)
|
||||
Minimally Invasive Therapies Group
|
1,952
|
|
|
2,473
|
|
|
(21
|
)
|
|
4,438
|
|
|
4,897
|
|
|
(9
|
)
|
||||
Spine
|
659
|
|
|
663
|
|
|
(1
|
)
|
|
1,308
|
|
|
1,308
|
|
|
—
|
|
||||
Brain Therapies
|
575
|
|
|
506
|
|
|
14
|
|
|
1,097
|
|
|
995
|
|
|
10
|
|
||||
Specialty Therapies
|
365
|
|
|
369
|
|
|
(1
|
)
|
|
734
|
|
|
725
|
|
|
1
|
|
||||
Pain Therapies
|
264
|
|
|
288
|
|
|
(8
|
)
|
|
533
|
|
|
570
|
|
|
(6
|
)
|
||||
Restorative Therapies Group
|
1,863
|
|
|
1,826
|
|
|
2
|
|
|
3,672
|
|
|
3,598
|
|
|
2
|
|
||||
Diabetes Group
|
462
|
|
|
462
|
|
|
—
|
|
|
911
|
|
|
914
|
|
|
—
|
|
||||
Total
|
$
|
7,050
|
|
|
$
|
7,345
|
|
|
(4
|
)%
|
|
$
|
14,440
|
|
|
$
|
14,511
|
|
|
—
|
%
|
•
|
Changes in procedural volumes, competitive product launches and pricing pressure, geographic macro-economic risks, reimbursement challenges, impacts from changes in the mix of our product offerings, the timing of product registration approvals, replacement cycle challenges, and fluctuations in currency exchange rates.
|
•
|
Acceptance and future growth of the CRT-P quadripolar pacing system, which received CE Mark approval in February 2017 and launched in Europe during the fourth quarter of fiscal year 2017. In the U.S., we received Food and Drug Administration (FDA) approval in May 2017, and launched in the first quarter of fiscal year 2018.
|
•
|
Acceptance and future growth of the Claria MRI CRT-D system with EffectivCRT Diagnostic and Effective CRT during AF algorithm, which launched in the U.S. late in the third quarter of fiscal year 2017 and is expected to launch in Japan in fiscal year 2018.
|
•
|
Continued future growth from the Reveal LINQ insertable cardiac monitor, which launched in Japan in the second quarter of fiscal year 2017.
|
•
|
Continued future growth of our Micra transcatheter pacing system. Micra is a miniaturized single chamber pacemaker system that is delivered through the femoral vein and is implanted in the right ventricle of the heart. The system does not use a lead and does not have a subcutaneous device pocket underneath the skin as with conventional pacemaker systems. We received final approval for reimbursement in the U.S. from the Centers for Medicare & Medicaid Services and in Japan from the Ministry of Health, Labour, and Welfare during the fourth quarter of fiscal year 2017 and during the second quarter of fiscal year 2018, respectively, for this transformative therapy, which we expect will continue to accelerate sales in the U.S. and in Japan.
|
•
|
Acceptance and future growth of the HeartWare HVAD System as a Destination Therapy for patients with advanced heart failure who are not candidates for heart transplants. The HVAD System, a left ventricular assist device or LVAD, helps the heart pump and increases the amount of blood that flows through the body. In the U.S., we received FDA approval in September 2017 for this Destination Therapy indication.
|
•
|
Continued acceptance and future growth from Care Management Services as post-acute care services become even more critical in bundled payment models for different interventions or therapies.
|
•
|
Continued acceptance and future growth from Evolut R 34mm transcatheter aortic heart valve, our next-generation recapturable system with differentiated 16 French equivalent delivery system, which was launched in the U.S. in the third quarter of fiscal year 2017.
|
•
|
Acceptance and future growth from Evolut PRO, which provides control during deployment to assist with accurate positioning with the ability to recapture and reposition the valve. Evolut PRO received U.S. FDA approval and launched in the fourth quarter of fiscal year 2017. Evolut PRO also received CE Mark approval at the end of the first quarter of fiscal year 2018 and launched in Europe during the second quarter of fiscal year 2018.
|
•
|
Acceptance and future growth from the market release of Resolute Onyx, which launched in the first quarter of fiscal year 2018 in the U.S. and in Japan. Resolute Onyx builds on the Resolute Integrity drug-eluting coronary stent with thinner struts to improve deliverability and is the first stent to feature our CoreWire technology, allowing greater visibility during procedures.
|
•
|
Continued acceptance and future growth of the IN.PACT Admiral drug-coated balloon, including the longer length 150mm sizes, for the treatment of peripheral artery disease in the upper leg.
|
•
|
Continued acceptance and future growth from the HawkOne 6 French (6F) for treating patients with peripheral artery disease (PAD), which launched in the U.S. in the third quarter of fiscal year 2017. The HawkOne system is designed to remove plaque from the vessel wall and restore blood flow. The new HawkOne 6F provides an effective and easy-to-use treatment option for patients with PAD both above and below the knee with a single device at a lower profile.
|
•
|
Changes in procedural volumes, competitive product launches and pricing pressure, geographic macro-economic risks, reprocessing of our products, reimbursement challenges, impacts from changes in the mix of our product offerings, the timing of product registration approvals, and fluctuations in currency exchange rates.
|
•
|
Continued acceptance and future growth of Open-to-MIS techniques and tools supported by our efforts to transition open surgery to MIS. The Open-to-MIS initiative focuses on establishing our presence in and working to optimize open surgery globally, while capturing the market opportunity that exists in transitioning open procedures to MIS, whether through traditional MIS, or advanced technologies including robotics. To achieve this transition, we are focused on product training, surgical skill training and continued therapy innovation to advance MIS.
|
•
|
The July 29, 2017 divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses. Net sales of the businesses included in the divestiture were $0.6 billion for the three months ended July 29, 2017, and $0.6 billion and $1.2 billion for the three and six months ended
October 28, 2016
, respectively. We have entered into Transition Manufacturing Agreements (TMAs) with Cardinal Health, Inc. The TMAs will contribute to net sales and are designed to ensure and facilitate an orderly transfer of business operations for a transition period of two to five years, with the ability to extend upon mutual agreement of the parties.
|
•
|
Continued acceptance and future growth of the powered stapling and energy platform.
|
•
|
Our ability to execute ongoing strategies in order to address the competitive pressure of reprocessing of our vessel sealing disposables in the U.S.
|
•
|
Our ability to create markets and drive product and procedures into emerging markets. We have high quality and cost-effective surgical products designed for customers in emerging markets such as the ValleyLab LS10 single channel vessel sealing generator, which is compatible with our line of LigaSure instruments and designed for simplified use and affordability.
|
•
|
Continued acceptance and future growth within the end stage renal disease market. The population of patients treated for end stage renal disease globally is expected to double over the next decade. We will grow our therapy innovation with scalable and affordable dialysis delivery while investing in vascular creation and maintenance technologies. In addition, the HD multi-pass system reduces infrastructure by requiring less water, less start-up costs, and offers high quality ultrapure dialysate treatment. The system is expected to launch in late fiscal year 2019 or early fiscal year 2020 depending on regulatory requirements.
|
•
|
Continued elevation of the standard of care for respiratory compromise, a progressive condition impacting a patient’s ability to breathe effectively.
|
•
|
Continued acceptance and growth in respiratory care, airway and ventilation management, and Patient Monitoring. Key products in this area include the Puritan Bennett 980 ventilator, Microstream Capnography bedside capnography monitor, portable monitor with Nellcor pulse oximetry system with OxiMax technology and the Nellcor Respiratory Compromise monitor with vital signs of SpO2, pulse rate, End-Tidal CO2, and Respiratory Rate.
|
•
|
Continued and future acceptance of less invasive standards of care, including the areas of GI Solutions and Advanced Ablation. Recently launched products include the PillCam COLON capsule endoscopy, the Barrx platform through ablation with the Barrx 360 Express catheter, the Emprint ablation system with Thermosphere Technology which maintains predictable spherical ablation zones throughout procedures reducing procedure time and cost.
|
•
|
Continued and future acceptance of Interventional Lung Solutions. Products include the superDimension GenCut core biopsy system and the Triple Needle Cytology Brush, a lung tissue biopsy tool for use with the superDimension navigation system. The superDimension system enables a minimally invasive approach to accessing difficult-to-reach areas of the lung, which may aid in the diagnosis of lung cancer.
|
•
|
Expanding the use of less invasive treatments and furthering our commitment to improving options for women with abnormal uterine bleeding with our fiscal year 2017 acquisition of Smith and Nephew's gynecology
|
•
|
Changes in procedural volumes, competitive product launches and pricing pressure, geographic macro-economic risks, reimbursement challenges, impacts from changes in the mix of our product offerings, the timing of product registration approvals, and fluctuations in currency exchange rates.
|
•
|
Continued acceptance and growth of the Solitare FR revascularization device for treatment of acute ischemic stroke and the Pipeline Embolization Devices, endovascular treatments for large or giant wide-necked brain aneurysms.
|
•
|
Continued growth from Neurosurgery StealthStation and O-Arm Imaging Systems, Midas and ENT power systems.
|
•
|
Continued successful placement of robotic units and associated market adoption of robot-assisted spine procedures, under an exclusive worldwide distributor agreement with Mazor Robotics.
|
•
|
Continued market acceptance of our new integrated solutions through the Surgical Synergy strategy, which integrates our spinal implants with enabling technologies such as imaging, navigation, power instruments, nerve monitoring and Mazor robotics.
|
•
|
Continued success of our "Speed-to-Scale" program launches, which involves faster innovation cycles and launching a steady cadence of new products at scale with sets immediately available for the entire market.
|
•
|
Market acceptance and continued global adoption of innovative new Spine products, such as our CD Horizon Solera Voyager system, our ELEVATE expandable interbody cages, and our OLIF25 and OLIF51 procedural solutions.
|
•
|
Growth in the broader vertebral compression fracture (VCF) and adjacent markets, as we continue to pursue the development of other therapies to treat more patients with VCF, including continued success of both the Kyphon V vertebroplasty system and the Osteocool RF Spinal Tumor ablation system.
|
•
|
Acceptance of Kanghui's broad portfolio of trauma, spine, and large-joint reconstruction products focused on the growing global value segment.
|
•
|
Continued acceptance and adoption rates of stimulators and leads approved to treat chronic pain in major markets around the world. Our Intellis spinal cord stimulator recently received U.S. FDA approval and CE Mark.
|
•
|
Ongoing obligations under the U.S. FDA consent decree entered in April 2015 relating to the SynchroMed drug infusion system and the Neuromodulation quality system. The U.S. FDA recently lifted its distributor requirements on our implantable drug pump in October and its warning letter in November 2017.
|
•
|
Continued and future acceptance of our current indications for Medtronic DBS Therapy for the treatment of movement disorders and epilepsy (approved in Europe). We anticipate continued competitive pressures in Europe and the U.S.
|
•
|
Continued acceptance and growth of our Specialty Therapies, including InterStim therapy for the treatment of the symptoms of overactive bladder, urinary retention, and bowel incontinence, and Transformative Solutions products and strategies to focus on its four core markets of orthopedic, spine, breast surgery, and Cardiac Rhythm Disease Management device replacements.
|
•
|
Competitive and pricing pressure, reimbursement challenges, impacts from changes in the mix of our product offerings, the timing of product registration approvals, and fluctuations in currency exchange rates.
|
•
|
Continued sensor supply constraints, along with higher than expected demand, will impact net sales as we prioritize fulfillment against our installed base of patients first. We continue to ramp manufacturing and expect new and expanded sensor manufacturing lines to be ready for commercial production by the fourth quarter of fiscal year 2018, at which time we expect to have the unconstrained capacity needed to meet the rapidly growing sensor demand.
|
•
|
Future growth associated with the transition of Animas insulin pump customers to our insulin pump technology.
|
•
|
Continued acceptance and future growth of the MiniMed 670G system, the first hybrid closed loop system in the world. The system features our most advanced SmartGuard algorithm, which enables improved glucose control with reduced user input. The MiniMed 670G system received U.S. FDA approval during the second quarter of fiscal year 2017 and launched in the U.S. in June 2017.
|
•
|
Changes in medical reimbursement policies and programs, along with payor coverage of the MiniMed 670G system.
|
•
|
Continued acceptance and future growth of the MiniMed 640G system with SmartGuard Suspend before Low technology, which has launched in Europe, Australia, and select countries in Latin America and Asia, and the MiniMed 620G system, the first integrated system customized for the Japanese market.
|
•
|
Continued acceptance and future growth of Guardian Connect CGM system which displays information directly to a smartphone. This system received CE mark in 2016 and has launched internationally, with an expected U.S. launch in the second half of fiscal year 2018.
|
•
|
Continued partnership with UnitedHealthcare as the preferred in-network provider of insulin pumps, giving their members access to our advanced diabetes technology and comprehensive support services.
|
•
|
Continued partnership and future growth of our outcomes-based agreement with Aetna, where a component of our pump reimbursement is based on successfully meeting clinical improvement thresholds as part of our value-based healthcare solutions.
|
|
U.S.
(1)
|
|
Non-U.S. Developed Markets
(2)
|
|
Emerging Markets
(3)
|
|||||||||||||||||||||||||||
|
Three months ended
|
|
Three months ended
|
|
Three months ended
|
|||||||||||||||||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
% Change
|
|
October 27, 2017
|
|
October 28, 2016
|
|
% Change
|
|
October 27, 2017
|
|
October 28, 2016
|
|
% Change
|
|||||||||||||||
Cardiac and Vascular Group
|
$
|
1,423
|
|
|
$
|
1,353
|
|
|
5
|
%
|
|
$
|
895
|
|
|
$
|
823
|
|
|
9
|
%
|
|
$
|
455
|
|
|
$
|
408
|
|
|
12
|
%
|
Minimally Invasive Therapies Group
|
795
|
|
|
1,266
|
|
|
(37
|
)
|
|
783
|
|
|
853
|
|
|
(8
|
)
|
|
374
|
|
|
354
|
|
|
6
|
|
||||||
Restorative Therapies Group
|
1,258
|
|
|
1,261
|
|
|
—
|
|
|
394
|
|
|
383
|
|
|
3
|
|
|
211
|
|
|
182
|
|
|
16
|
|
||||||
Diabetes Group
|
258
|
|
|
272
|
|
|
(5
|
)
|
|
169
|
|
|
150
|
|
|
13
|
|
|
35
|
|
|
40
|
|
|
(13
|
)
|
||||||
Total
|
$
|
3,734
|
|
|
$
|
4,152
|
|
|
(10
|
)%
|
|
$
|
2,241
|
|
|
$
|
2,209
|
|
|
1
|
%
|
|
$
|
1,075
|
|
|
$
|
984
|
|
|
9
|
%
|
|
U.S.
(1)
|
|
Non-U.S. Developed Markets
(2)
|
|
Emerging Markets
(3)
|
|||||||||||||||||||||||||||
|
Six months ended
|
|
Six months ended
|
|
Six months ended
|
|||||||||||||||||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
% Change
|
|
October 27, 2017
|
|
October 28, 2016
|
|
% Change
|
|
October 27, 2017
|
|
October 28, 2016
|
|
% Change
|
|||||||||||||||
Cardiac and Vascular Group
|
$
|
2,756
|
|
|
$
|
2,650
|
|
|
4
|
%
|
|
$
|
1,782
|
|
|
$
|
1,652
|
|
|
8
|
%
|
|
$
|
881
|
|
|
$
|
800
|
|
|
10
|
%
|
Minimally Invasive Therapies Group
|
2,040
|
|
|
2,501
|
|
|
(18
|
)
|
|
1,648
|
|
|
1,716
|
|
|
(4
|
)
|
|
750
|
|
|
680
|
|
|
10
|
|
||||||
Restorative Therapies Group
|
2,479
|
|
|
2,468
|
|
|
—
|
|
|
788
|
|
|
767
|
|
|
3
|
|
|
405
|
|
|
363
|
|
|
12
|
|
||||||
Diabetes Group
|
501
|
|
|
535
|
|
|
(6
|
)
|
|
336
|
|
|
305
|
|
|
10
|
|
|
74
|
|
|
74
|
|
|
—
|
|
||||||
Total
|
$
|
7,776
|
|
|
$
|
8,154
|
|
|
(5
|
)%
|
|
$
|
4,554
|
|
|
$
|
4,440
|
|
|
3
|
%
|
|
$
|
2,110
|
|
|
$
|
1,917
|
|
|
10
|
%
|
(1)
|
U.S. includes the United States and U.S. territories
|
(2)
|
Non-U.S. developed markets include Japan, Australia, New Zealand, Korea, Canada, and the countries of Western Europe
|
(3)
|
Emerging markets include the countries of the Middle East, Africa, Latin America, Eastern Europe, and the countries of Asia that are not included in the non-U.S. developed markets, as defined above
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||||||
Net sales
|
$
|
7,050
|
|
|
$
|
7,345
|
|
|
$
|
14,440
|
|
|
$
|
14,511
|
|
Cost of products sold
|
2,120
|
|
|
2,326
|
|
|
4,469
|
|
|
4,587
|
|
||||
Gross profit
|
$
|
4,930
|
|
|
$
|
5,019
|
|
|
$
|
9,971
|
|
|
$
|
9,924
|
|
|
|
|
|
|
|
|
|
||||||||
Gross margin percent
|
69.9
|
%
|
|
68.3
|
%
|
|
69.1
|
%
|
|
68.4
|
%
|
|
Three months ended
|
|
Six months ended
|
||||||||
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||
Research and development expense
|
7.9
|
%
|
|
7.5
|
%
|
|
7.6
|
%
|
|
7.6
|
%
|
Selling, general, and administrative expense
|
34.6
|
%
|
|
32.9
|
%
|
|
34.1
|
%
|
|
33.4
|
%
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||||||
Amortization of intangible assets
|
$
|
460
|
|
|
$
|
500
|
|
|
$
|
914
|
|
|
$
|
987
|
|
Restructuring charges, net
|
8
|
|
|
47
|
|
|
16
|
|
|
141
|
|
||||
Acquisition-related items
|
7
|
|
|
28
|
|
|
51
|
|
|
80
|
|
||||
Certain litigation charges
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
||||
Divestiture-related items
|
67
|
|
|
—
|
|
|
114
|
|
|
—
|
|
||||
Gain on sale of businesses
|
(697
|
)
|
|
—
|
|
|
(697
|
)
|
|
—
|
|
||||
Special charge
|
80
|
|
|
—
|
|
|
80
|
|
|
—
|
|
||||
Other expense, net
|
111
|
|
|
89
|
|
|
177
|
|
|
128
|
|
||||
Interest expense, net
|
173
|
|
|
173
|
|
|
367
|
|
|
352
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
|
October 27, 2017
|
|
October 28, 2016
|
||||||||
Income tax (benefit) provision
|
$
|
(285
|
)
|
|
$
|
101
|
|
|
$
|
(99
|
)
|
|
$
|
160
|
|
Income before income taxes
|
1,728
|
|
|
1,212
|
|
|
2,923
|
|
|
2,200
|
|
||||
Effective tax rate
|
(16.5
|
)%
|
|
8.3
|
%
|
|
(3.4
|
)%
|
|
7.3
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Non-GAAP income tax provision
|
$
|
256
|
|
|
$
|
268
|
|
|
$
|
486
|
|
|
$
|
538
|
|
Non-GAAP income before income taxes
|
1,708
|
|
|
1,825
|
|
|
3,472
|
|
|
3,538
|
|
||||
Non-GAAP Nominal Tax Rate
|
15.0
|
%
|
|
14.7
|
%
|
|
14.0
|
%
|
|
15.2
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Difference between the effective tax rate and Non-GAAP Nominal Tax Rate
|
31.5
|
%
|
|
6.4
|
%
|
|
17.4
|
%
|
|
7.9
|
%
|
(in millions)
|
October 27, 2017
|
|
April 28, 2017
|
||||
Working capital
|
$
|
14,666
|
|
|
$
|
10,316
|
|
Current ratio
(1)
|
2.4:1.0
|
|
|
1.7:1.0
|
|
||
Cash, cash equivalents, and current investments
|
$
|
13,526
|
|
|
$
|
13,708
|
|
Current debt obligations and long-term debt
|
$
|
29,072
|
|
|
$
|
33,441
|
|
(1)
|
The ratio of current assets to current liabilities, excluding current assets and current liabilities held for sale at April 28, 2017.
|
|
|
Agency Rating
(1)
|
||
|
|
October 27, 2017
|
|
April 28, 2017
|
Standard & Poor's Ratings Services
|
|
|
|
|
Long-term debt
|
|
A
|
|
A
|
Short-term debt
|
|
A-1
|
|
A-1
|
|
|
|
|
|
Moody's Investors Service
|
|
|
|
|
Long-term debt
|
|
A3
|
|
A3
|
Short-term debt
|
|
P-2
|
|
P-2
|
(1)
|
Agency ratings are subject to change, and there may be no assurance that an agency will continue to provide ratings and/or maintain its current ratings. A security rating is not a recommendation to buy, sell or hold securities, and may be subject to revision or withdrawal at any time by the rating agency, and each rating should be evaluated independently of any other rating.
|
|
Six months ended
|
||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
||||
Cash provided by (used in):
|
|
|
|
|
|
||
Operating activities
|
$
|
1,644
|
|
|
$
|
3,022
|
|
Investing activities
|
6,125
|
|
|
(357
|
)
|
||
Financing activities
|
(7,277
|
)
|
|
(2,651
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
70
|
|
|
64
|
|
||
Net change in cash and cash equivalents
|
$
|
562
|
|
|
$
|
78
|
|
|
Six months ended
|
||||||
(in millions)
|
October 27, 2017
|
|
October 28, 2016
|
||||
Net cash provided by operating activities
|
$
|
1,644
|
|
|
$
|
3,022
|
|
Net cash used in investing activities
|
6,125
|
|
|
(357
|
)
|
||
Net cash used in financing activities
|
(7,277
|
)
|
|
(2,651
|
)
|
||
|
|
|
|
||||
Net cash provided by operating activities
|
$
|
1,644
|
|
|
$
|
3,022
|
|
Additions to property, plant, and equipment
|
(524
|
)
|
|
(598
|
)
|
||
Free cash flow
|
$
|
1,120
|
|
|
$
|
2,424
|
|
|
|
|
|
||||
Dividends to shareholders
|
$
|
1,247
|
|
|
$
|
1,192
|
|
Repurchase of ordinary shares
|
1,888
|
|
|
2,794
|
|
||
Issuances of ordinary shares
|
(230
|
)
|
|
(260
|
)
|
||
Return to shareholders
|
$
|
2,905
|
|
|
$
|
3,726
|
|
Return of operating cash flow percentage
|
177
|
%
|
|
123
|
%
|
||
Return of free cash flow percentage
|
259
|
%
|
|
154
|
%
|
Fiscal Period
|
|
Total Number of
Shares Purchased
|
|
Average Price
Paid per Share
|
|
Total Number of Shares
Purchased as a Part of
Publicly Announced
Program
(1)
|
|
Maximum Approximate Dollar Value of Shares that may yet be Purchased
Under the Program (2) |
|||||
7/29/2017-8/25/2017
|
|
4,761,958
|
|
|
$
|
84.00
|
|
|
4,761,958
|
|
|
4,455,754,233
|
|
8/26/2017-9/29/2017
|
|
1,241,547
|
|
|
80.54
|
|
|
1,241,547
|
|
|
4,355,779,087
|
|
|
9/30/2017-10/27/2017
|
|
1,370,564
|
|
|
78.07
|
|
|
1,370,564
|
|
|
4,248,806,806
|
|
|
Total
|
|
7,374,069
|
|
|
$
|
82.32
|
|
|
7,374,069
|
|
|
4,248,806,806
|
|
(1)
|
In June 2015, the Company’s Board of Directors authorized, subject to the ongoing existence of sufficient distributable reserves, the repurchase of 80 million of the Company’s ordinary shares. As authorized by the Board of Directors, the Company's share redemption program expires when the total number of authorized shares have been redeemed. As noted below, this repurchase authorization was replaced in June 2017 with the repurchase authorization described in footnote (2) below. As such, the maximum number of shares that may yet be purchased under the program is no longer applicable to the repurchase program in place.
|
(2)
|
In June 2017, the Company's Board of Directors authorized the repurchase of $5 billion of the Company’s ordinary shares. This authorization replaces the June 2015 authorization described in footnote (1) above. There is no specific time-period associated with this repurchase authorization.
|
|
|
MEDTRONIC PUBLIC LIMITED COMPANY
|
|
|
(Registrant)
|
|
|
|
Date:
|
December 4, 2017
|
/s/ Omar Ishrak
|
|
|
Omar Ishrak
|
|
|
Chairman and Chief Executive Officer
|
|
|
|
Date:
|
December 4, 2017
|
/s/ Karen L. Parkhill
|
|
|
Karen L. Parkhill
|
|
|
Executive Vice President and
|
|
|
Chief Financial Officer
|
1 Year Medtronic Chart |
1 Month Medtronic Chart |
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