MEDTRONIC PLC
WORLD WIDE REVENUE(1)
(Unaudited)
FOURTH QUARTER | ||||||||||||||||||
REPORTED | ORGANIC | |||||||||||||||||
(in millions) | FY24 | FY23 | Growth | Currency | Adjusted | Adjusted | Adjusted | |||||||||||
Impact(3) | FY24(4) | FY23(5) | Growth | |||||||||||||||
Cardiovascular | $ | 3,130 | $ | 3,302 | (5.2)% | $ | (28) | $ | 3,158 | $ | 3,037 | 4.0 % | ||||||
Cardiac Rhythm & Heart Failure | 1,587 | 1,567 | 1.3 | (15) | 1,602 | 1,567 | 2.2 | |||||||||||
Structural Heart & Aortic | 883 | 1,105 | (20.1) | (6) | 889 | 840 | 5.8 | |||||||||||
Coronary & Peripheral Vascular | 660 | 631 | 4.6 | (7) | 667 | 631 | 5.7 | |||||||||||
Neuroscience | 2,545 | 2,410 | 5.6 | (21) | 2,566 | 2,410 | 6.5 | |||||||||||
Cranial & Spinal Technologies | 1,291 | 1,198 | 7.8 | (11) | 1,302 | 1,198 | 8.7 | |||||||||||
Specialty Therapies | 778 | 763 | 2.0 | (9) | 787 | 763 | 3.1 | |||||||||||
Neuromodulation | 475 | 449 | 5.8 | (1) | 476 | 449 | 6.0 | |||||||||||
Medical Surgical | 2,198 | 2,124 | 3.5 | (22) | 2,220 | 2,124 | 4.5 | |||||||||||
Surgical & Endoscopy | 1,705 | 1,638 | 4.1 | (15) | 1,720 | 1,638 | 5.0 | |||||||||||
Acute Care & Monitoring | 492 | 486 | 1.2 | (6) | 498 | 486 | 2.5 | |||||||||||
Diabetes | 660 | 595 | 10.9 | (1) | 661 | 595 | 11.1 | |||||||||||
Other (2) | 57 | 114 | (50.0) | (3) | - | - | - | |||||||||||
TOTAL | $ | 8,589 | $ | 8,544 | 0.5 % | $ | (75) | $ | 8,604 | $ | 8,165 | 5.4 % | ||||||
FISCAL YEAR
REPORTED | ORGANIC | ||||||||||||||||
FY24 | FY23 | Growth | Currency | Adjusted | Adjusted | Adjusted | |||||||||||
Impact(3) | FY24(4) | FY23(5) | Growth | ||||||||||||||
$ | 11,831 | $ | 11,522 | 2.7 % | $ | 12 | $ | 11,819 | $ | 11,257 | 5.0 % | ||||||
5,995 | 5,783 | 3.7 | 11 | 5,984 | 5,783 | 3.5 | |||||||||||
3,358 | 3,363 | (0.1) | 11 | 3,347 | 3,098 | 8.0 | |||||||||||
2,478 | 2,375 | 4.3 | (10) | 2,488 | 2,375 | 4.8 | |||||||||||
9,406 | 8,959 | 5.0 | (16) | 9,422 | 8,959 | 5.2 | |||||||||||
4,756 | 4,451 | 6.9 | (11) | 4,767 | 4,451 | 7.1 | |||||||||||
2,905 | 2,815 | 3.2 | (12) | 2,917 | 2,815 | 3.6 | |||||||||||
1,746 | 1,693 | 3.1 | 7 | 1,739 | 1,693 | 2.7 | |||||||||||
8,417 | 7,989 | 5.4 | 16 | 8,512 | 8,127 | 4.7 | |||||||||||
6,508 | 6,152 | 5.8 | 20 | 6,488 | 6,152 | 5.5 | |||||||||||
1,908 | 1,837 | 3.9 | (4) | 2,024 | 1,975 | 2.5 | |||||||||||
2,488 | 2,262 | 10.0 | 31 | 2,457 | 2,262 | 8.6 | |||||||||||
221 | 495 | (55.4) | (12) | - | - | - | |||||||||||
$ | 32,364 | $ | 31,227 | 3.6 % | $ | 31 | $ | 32,210 | $ | 30,604 | 5.2 % | ||||||
- The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum.
- Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested, which primarily includes the Company's ventilator product line and the Renal Care Solutions (RCS) business.
- The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.
- The three and twelve months ended April 26, 2024 excludes $57 million and $111 million, respectively, of inorganic revenue related to the activity noted in (2) and $72 million of unfavorable currency impact and $43 million of favorable currency impact on the remaining segments, respectively. The fiscal year organic revenue calculation reclassifies the first nine months of ventilator product line revenue of $110 million from the Other line to the Acute Care and Monitoring division of the Medical Surgical Portfolio.
- The three and twelve months ended April 28, 2023 excludes $379 million and $623 million, respectively, of inorganic revenue related to the following:
- $265 million related to the one-time payment received as a result of the Intellectual Property Agreement entered into with Edwards Lifesciences in April 2023, which is included in the reported results of the Structural Heart & Aortic division of the Cardiovascular portfolio, and
- $114 million and $358 million, respectively, of inorganic revenue related to the activity noted in (2). The fiscal year organic revenue calculation reclassifies the first nine months of ventilator product line revenue of $138 million from the Other line to the Acute Care and Monitoring division of the Medical Surgical Portfolio.
1
MEDTRONIC PLC
U.S.(1)(2) REVENUE
(Unaudited)
FOURTH QUARTER | FISCAL YEAR | |||||||||||||||||||||||||||||||
REPORTED | ORGANIC | REPORTED | ORGANIC | |||||||||||||||||||||||||||||
(in millions) | FY24 | FY23 | Growth | Adjusted | Adjusted | Growth | FY24 | FY23 | Growth | Adjusted | Adjusted | Growth | ||||||||||||||||||||
FY24(4) | FY23(5) | FY24(4) | FY23(5) | |||||||||||||||||||||||||||||
Cardiovascular | $ | 1,448 | $ | 1,737 | (16.6)% | $ | 1,448 | $ | 1,472 | (1.6)% | $ | 5,597 | $ | 5,796 | (3.4)% | $ | 5,597 | $ | 5,531 | 1.2 % | ||||||||||||
Cardiac Rhythm & Heart Failure | 791 | 819 | (3.4) | 791 | 819 | (3.4) | 3,037 | 3,052 | (0.5) | 3,037 | 3,052 | (0.5) | ||||||||||||||||||||
Structural Heart & Aortic | 366 | 625 | (41.4) | 366 | 360 | 1.7 | 1,453 | 1,622 | (10.4) | 1,453 | 1,357 | 7.1 | ||||||||||||||||||||
Coronary & Peripheral Vascular | 291 | 293 | (0.7) | 291 | 293 | (0.7) | 1,107 | 1,122 | (1.3) | 1,107 | 1,122 | (1.3) | ||||||||||||||||||||
Neuroscience | 1,692 | 1,581 | 7.0 | 1,692 | 1,581 | 7.0 | 6,305 | 6,018 | 4.8 | 6,305 | 6,018 | 4.8 | ||||||||||||||||||||
Cranial & Spinal Technologies | 936 | 855 | 9.5 | 936 | 855 | 9.5 | 3,495 | 3,259 | 7.2 | 3,495 | 3,259 | 7.2 | ||||||||||||||||||||
Specialty Therapies | 439 | 422 | 4.0 | 439 | 422 | 4.0 | 1,641 | 1,608 | 2.1 | 1,641 | 1,608 | 2.1 | ||||||||||||||||||||
Neuromodulation | 317 | 304 | 4.3 | 317 | 304 | 4.3 | 1,169 | 1,151 | 1.6 | 1,169 | 1,151 | 1.6 | ||||||||||||||||||||
Medical Surgical | 954 | 919 | 3.8 | 954 | 919 | 3.8 | 3,717 | 3,549 | 4.7 | 3,759 | 3,604 | 4.3 | ||||||||||||||||||||
Surgical & Endoscopy | 679 | 653 | 4.0 | 679 | 653 | 4.0 | 2,650 | 2,541 | 4.3 | 2,650 | 2,541 | 4.3 | ||||||||||||||||||||
Acute Care & Monitoring | 275 | 266 | 3.4 | 275 | 266 | 3.4 | 1,067 | 1,008 | 5.9 | 1,109 | 1,063 | 4.3 | ||||||||||||||||||||
Diabetes | 223 | 199 | 12.1 | 223 | 199 | 12.1 | 852 | 849 | 0.4 | 852 | 849 | 0.4 | ||||||||||||||||||||
Other (3) | 26 | 39 | (33.3) | - | - | - | 91 | 160 | (43.1) | - | - | - | ||||||||||||||||||||
TOTAL | $ | 4,343 | $ | 4,476 | (3.0)% | $ | 4,317 | $ | 4,171 | 3.5 % | $ | 16,562 | $ | 16,373 | 1.2 % | $ | 16,514 | $ | 16,003 | 3.2 % |
- U.S. includes the United States and U.S. territories.
- The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum.
- Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested, which primarily includes the Company's ventilator product line and the Renal Care Solutions (RCS) business.
- The three and twelve months ended April 26, 2024 excludes $26 million and $48 million, respectively, of inorganic revenue related to the activity noted in (3). The fiscal year organic revenue calculation reclassifies the first nine months of ventilator product line revenue of $42 million from the Other line to the Acute Care and Monitoring division of the Medical Surgical Portfolio.
- The three and twelve months ended April 28, 2023 excludes $304 million and $370 million, respectively, of inorganic revenue related to the following:
- $265 million related to the one-time payment received as a result of the Intellectual Property Agreement entered into with Edwards Lifesciences in April 2023, which is included in the reported results of the Structural Heart & Aortic division of the Cardiovascular portfolio, and
- $39 million and $105 million, respectively, of inorganic revenue related to the activity noted in (3). The fiscal year organic revenue calculation reclassifies the first nine months of ventilator product line revenue of $55 million from the Other line to the Acute Care and Monitoring division of the Medical Surgical Portfolio.
2
MEDTRONIC PLC
WORLD WIDE REVENUE: GEOGRAPHIC (1)(2)
(Unaudited)
FOURTH QUARTER | FISCAL YEAR | |||||||||||||||||||||||||||||||||||||
REPORTED | ORGANIC | REPORTED | ORGANIC | |||||||||||||||||||||||||||||||||||
(in millions) | FY24 | FY23 | Growth | Currency | Adjusted | Adjusted | Growth | FY24 | FY23 | Growth | Currency | Adjusted | Adjusted | Growth | ||||||||||||||||||||||||
Impact(4) | FY24(5) | FY23(6) | Impact(4) | FY24(5) | FY23(6) | |||||||||||||||||||||||||||||||||
U.S. | $ | 1,448 | $ | 1,737 | (16.6) % | $ | - | $ | 1,448 | $ | 1,472 | (1.6) % | $ | 5,597 | $ | 5,796 | (3.4) % | $ | - | $ | 5,597 | $ | 5,531 | 1.2 | % | |||||||||||||
Non-U.S. Developed | 1,039 | 1,011 | 2.8 | (13) | 1,052 | 1,011 | 4.1 | 3,857 | 3,564 | 8.2 | 62 | 3,795 | 3,564 | 6.5 | ||||||||||||||||||||||||
Emerging Markets | 643 | 554 | 16.1 | (15) | 658 | 554 | 18.8 | 2,377 | 2,161 | 10.0 | (49) | 2,426 | 2,161 | 12.3 | ||||||||||||||||||||||||
Cardiovascular | 3,130 | 3,302 | (5.2) | (28) | 3,158 | 3,037 | 4.0 | 11,831 | 11,522 | 2.7 | 12 | 11,819 | 11,257 | 5.0 | ||||||||||||||||||||||||
U.S. | 1,692 | 1,581 | 7.0 | - | 1,692 | 1,581 | 7.0 | 6,305 | 6,018 | 4.8 | - | 6,305 | 6,018 | 4.8 | ||||||||||||||||||||||||
Non-U.S. Developed | 482 | 469 | 2.8 | (11) | 493 | 469 | 5.1 | 1,739 | 1,658 | 4.9 | 9 | 1,730 | 1,658 | 4.3 | ||||||||||||||||||||||||
Emerging Markets | 371 | 360 | 3.1 | (10) | 381 | 360 | 5.8 | 1,362 | 1,283 | 6.2 | (25) | 1,387 | 1,283 | 8.1 | ||||||||||||||||||||||||
Neuroscience | 2,545 | 2,410 | 5.6 | (21) | 2,566 | 2,410 | 6.5 | 9,406 | 8,959 | 5.0 | (16) | 9,422 | 8,959 | 5.2 | ||||||||||||||||||||||||
U.S. | 954 | 919 | 3.8 | - | 954 | 919 | 3.8 | 3,717 | 3,549 | 4.7 | - | 3,759 | 3,604 | 4.3 | ||||||||||||||||||||||||
Non-U.S. Developed | 805 | 799 | 0.8 | (17) | 822 | 799 | 2.9 | 3,049 | 2,917 | 4.5 | 20 | 3,055 | 2,944 | 3.8 | ||||||||||||||||||||||||
Emerging Markets | 439 | 405 | 8.4 | (5) | 444 | 405 | 9.6 | 1,650 | 1,522 | 8.4 | (4) | 1,697 | 1,579 | 7.5 | ||||||||||||||||||||||||
Medical Surgical | 2,198 | 2,124 | 3.5 | (22) | 2,220 | 2,124 | 4.5 | 8,417 | 7,989 | 5.4 | 16 | 8,512 | 8,127 | 4.7 | ||||||||||||||||||||||||
U.S. | 223 | 199 | 12.1 | - | 223 | 199 | 12.1 | 852 | 849 | 0.4 | - | 852 | 849 | 0.4 | ||||||||||||||||||||||||
Non-U.S. Developed | 337 | 314 | 7.3 | 1 | 336 | 314 | 7.0 | 1,284 | 1,106 | 16.1 | 37 | 1,247 | 1,106 | 12.7 | ||||||||||||||||||||||||
Emerging Markets | 99 | 82 | 20.7 | (2) | 101 | 82 | 23.2 | 352 | 307 | 14.7 | (6) | 358 | 307 | 16.6 | ||||||||||||||||||||||||
Diabetes | 660 | 595 | 10.9 | (1) | 661 | 595 | 11.1 | 2,488 | 2,262 | 10.0 | 31 | 2,457 | 2,262 | 8.6 | ||||||||||||||||||||||||
U.S. | 26 | 39 | (33.3) | - | - | - | - | 91 | 160 | (43.1) | - | - | - | - | ||||||||||||||||||||||||
Non-U.S. Developed | 11 | 35 | (68.6) | (2) | - | - | - | 50 | 163 | (69.3) | (6) | - | - | - | ||||||||||||||||||||||||
Emerging Markets | 21 | 39 | (46.2) | (1) | - | - | - | 81 | 172 | (52.9) | (5) | - | - | - | ||||||||||||||||||||||||
Other (3) | 57 | 114 | (50.0) | (3) | - | - | - | 221 | 495 | (55.4) | (12) | - | - | - | ||||||||||||||||||||||||
U.S. | 4,343 | 4,476 | (3.0) | - | 4,317 | 4,171 | 3.5 | 16,562 | 16,373 | 1.2 | - | 16,514 | 16,003 | 3.2 | ||||||||||||||||||||||||
Non-U.S. Developed | 2,674 | 2,629 | 1.7 | (42) | 2,702 | 2,593 | 4.2 | 9,979 | 9,408 | 6.1 | 121 | 9,828 | 9,272 | 6.0 | ||||||||||||||||||||||||
Emerging Markets | 1,572 | 1,440 | 9.2 | (33) | 1,584 | 1,401 | 13.1 | 5,823 | 5,446 | 6.9 | (89) | 5,869 | 5,330 | 10.1 | ||||||||||||||||||||||||
TOTAL | $ | 8,589 | $ | 8,544 | 0.5 % | $ | (75) | $ | 8,604 | $ | 8,165 | 5.4 % | $ | 32,364 | $ | 31,227 | 3.6 % | $ | 31 | $ | 32,210 | $ | 30,604 | 5.2 % |
- U.S. includes the United States and U.S. territories. Non-U.S. developed markets include Japan, Australia, New Zealand, Korea, Canada, and the countries of Western Europe. 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 previously defined.
- The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum.
- Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested, which primarily includes the Company's ventilator product line and the Renal Care Solutions (RCS) business.
- The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.
- The three and twelve months ended April 26, 2024 excludes $57 million and $111 million, respectively, of inorganic revenue related to the activity noted in (3) and $72 million of unfavorable currency impact and $43 million of favorable currency impact on the remaining segments, respectively. The fiscal year organic revenue calculation reclassifies the first nine months of ventilator product line revenue of $110 million from the Other line to the Acute Care and Monitoring division of the Medical Surgical Portfolio.
- The three and twelve months ended April 28, 2023 excludes $379 million and $623 million, respectively, of inorganic revenue related to the following:
- $265 million related to the one-time payment received as a result of the Intellectual Property Agreement entered into with Edwards Lifesciences in April 2023, which is included in the reported results of the Structural Heart & Aortic division of the Cardiovascular portfolio, and
- $114 million and $358 million, respectively, of inorganic revenue related to the activity noted in (3). The fiscal year organic revenue calculation reclassifies the first nine months of ventilator product line revenue of $138 million from the Other line to the Acute Care and Monitoring division of the Medical Surgical Portfolio.
3
MEDTRONIC PLC
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended | Fiscal year ended | ||||||||||
(in millions, except per share data) | April 26, 2024 | April 28, 2023 | April 26, 2024 | April 28, 2023 | |||||||
Net sales | $ | 8,589 | $ | 8,544 | $ | 32,364 | $ | 31,227 | |||
Costs and expenses: | |||||||||||
Cost of products sold, excluding amortization of intangible assets | 3,044 | 2,980 | 11,216 | 10,719 | |||||||
Research and development expense | 675 | 640 | 2,735 | 2,696 | |||||||
Selling, general, and administrative expense | 2,765 | 2,616 | 10,736 | 10,415 | |||||||
Amortization of intangible assets | 419 | 423 | 1,693 | 1,698 | |||||||
Restructuring charges, net | 112 | 294 | 226 | 375 | |||||||
Certain litigation charges, net | 44 | (30) | 149 | (30) | |||||||
Other operating expense (income), net | 477 | 56 | 464 | (131) | |||||||
Operating profit | 1,053 | 1,565 | 5,144 | 5,485 | |||||||
Other non-operating income, net | (4) | (173) | (412) | (515) | |||||||
Interest expense, net | 202 | 187 | 719 | 636 | |||||||
Income before income taxes | 856 | 1,551 | 4,837 | 5,364 | |||||||
Income tax provision | 196 | 362 | 1,133 | 1,580 | |||||||
Net income | 659 | 1,188 | 3,705 | 3,784 | |||||||
Net income attributable to noncontrolling interests | (5) | (9) | (28) | (26) | |||||||
Net income attributable to Medtronic | $ | 654 | $ | 1,179 | $ | 3,676 | $ | 3,758 | |||
Basic earnings per share | |||||||||||
$ | 0.49 | $ | 0.89 | $ | 2.77 | $ | 2.83 | ||||
Diluted earnings per share | |||||||||||
$ | 0.49 | $ | 0.88 | $ | 2.76 | $ | 2.82 | ||||
Basic weighted average shares outstanding | |||||||||||
1,322.3 | 1,330.4 | 1,327.7 | 1,329.8 | ||||||||
Diluted weighted average shares outstanding | 1,325.4 | 1,332.8 | 1,330.2 | 1,332.8 |
The data in the schedule above has been intentionally rounded to the nearest million, and therefore, the quarterly amounts may not sum to the fiscal year- to-date amounts.
4
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended April 26, 2024 | ||||||||||||||||||||||||
Cost of | Gross | Operating | Income | Net Income | ||||||||||||||||||||
Net | Operating | Before | attributable | Diluted | Effective | |||||||||||||||||||
(in millions, except per share data) | Products | Margin | Profit | Income | to | |||||||||||||||||||
Sales | Sold | Percent | Profit | Percent | Taxes | Medtronic | EPS | Tax Rate | ||||||||||||||||
GAAP | $ | 8,589 | $ | 3,044 | 64.6 % | $ | 1,053 | 12.3 % | $ | 856 | $ | 654 | $ | 0.49 | 22.9 % | |||||||||
Non-GAAP Adjustments: | ||||||||||||||||||||||||
Amortization of intangible assets | - | - | - | 419 | 4.9 | 419 | 357 | 0.27 | 15.0 | |||||||||||||||
Restructuring and associated costs (2) | - | (13) | 0.2 | 152 | 1.8 | 152 | 125 | 0.09 | 17.8 | |||||||||||||||
Acquisition and divestiture-related items (3) | - | (76) | 0.9 | 611 | 7.1 | 611 | 515 | 0.39 | 15.9 | |||||||||||||||
Certain litigation charges, net | - | - | - | 44 | 0.5 | 44 | 37 | 0.03 | 15.9 | |||||||||||||||
(Gain)/loss on minority investments (4) | - | - | - | - | - | 195 | 197 | 0.15 | (1.0) | |||||||||||||||
Medical device regulations (5) | - | (21) | 0.2 | 31 | 0.4 | 31 | 27 | 0.02 | 12.9 | |||||||||||||||
Certain tax adjustments, net | - | - | - | - | - | - | 17 | 0.01 | - | |||||||||||||||
Non-GAAP | $ | 8,589 | $ | 2,934 | 65.8 % | $ | 2,311 | 26.9 % | $ | 2,309 | $ | 1,929 | $ | 1.46 | 16.2 % | |||||||||
Currency impact | 75 | 18 | 0.1 | 101 | 0.9 | 0.07 | ||||||||||||||||||
Currency Adjusted | $ | 8,664 | $ | 2,952 | 65.9 % | $ | 2,412 | 27.8 % | $ | 1.53 | ||||||||||||||
Three months ended April 28, 2023 | ||||||||||||||||||||||||
Cost of | Gross | Operating | Income | Net Income | ||||||||||||||||||||
Net | Operating | Before | attributable | Diluted | Effective | |||||||||||||||||||
(in millions, except per share data) | Products | Margin | Profit | Income | to | |||||||||||||||||||
Sales | Sold | Percent | Profit | Percent | Taxes | Medtronic | EPS | Tax Rate | ||||||||||||||||
GAAP | $ | 8,544 | $ | 2,980 | 65.1 % | $ | 1,565 | 18.3 % | $ | 1,551 | $ | 1,179 | $ | 0.88 | 23.3 % | |||||||||
Non-GAAP Adjustments: | ||||||||||||||||||||||||
Amortization of intangible assets | - | - | - | 423 | 5.0 | 423 | 361 | 0.27 | 14.7 | |||||||||||||||
Restructuring and associated costs (2) | - | (30) | 0.4 | 372 | 4.4 | 372 | 288 | 0.22 | 22.6 | |||||||||||||||
Acquisition and divestiture-related items (6) | - | (7) | 0.1 | 139 | 1.6 | 139 | 131 | 0.10 | 5.8 | |||||||||||||||
Certain litigation charges, net (7) | - | - | - | (30) | (0.4) | (30) | (22) | (0.02) | 26.7 | |||||||||||||||
(Gain)/loss on minority investments (4) | - | - | - | - | - | (10) | (7) | (0.01) | (20.0) | |||||||||||||||
Medical device regulations (5) | - | (25) | 0.3 | 44 | 0.5 | 44 | 34 | 0.03 | 22.7 | |||||||||||||||
Certain tax adjustments, net (8) | - | - | - | - | - | - | 127 | 0.10 | - | |||||||||||||||
Non-GAAP | $ | 8,544 | $ | 2,917 | 65.9 % | $ | 2,512 | 29.4 % | $ | 2,488 | $ | 2,091 | $ | 1.57 | 15.8 % | |||||||||
See description of non-GAAP financial measures contained in the press release dated May 23, 2024.
- The data in this schedule has been intentionally rounded to the nearest million or $0.01 for EPS figures, and, therefore, may not sum.
- Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program, consulting expenses, and asset write-offs.
- The charges predominantly include $439 million of charges related to the February 20, 2024 decision to exit the Company's ventilator product line, which primarily includes long-lived intangible asset impairments and inventory write-downs. In addition, other charges primarily consist of changes in fair value of contingent consideration.
- We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.
- The charges represent incremental costs of complying with the new European Union medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs, which are limited to a specific period.
- The charges primarily include changes in the carrying value of the disposal group and other associated costs as a result of the April 2023 sale of half of the Company's Renal Care Solutions (RCS) business, changes in fair value of contingent consideration, business combination costs, and associated costs related to the previously contemplated separation of the PMRI businesses.
- Certain litigation includes $35 million related to the one-time payment received as a result of the Intellectual Property Agreement entered into with Edwards Lifesciences in April 2023.
- The charge primarily relates to the reduction of deferred tax assets due to the disallowance of certain interest deductions and the change in the reporting currency for certain carryover attributes, and the impact from the sale of half of the Company's RCS business.
5
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Fiscal year ended April 26, 2024 | |||||||||||||||||||||
Cost of | Gross | Operating | Income | Net Income | |||||||||||||||||
Net | Operating | Before | Diluted | Effective | |||||||||||||||||
(in millions, except per share data) | Products | Margin | Profit | Income | attributable | ||||||||||||||||
Sales | Sold | Percent | Profit | Percent | Taxes | to Medtronic | EPS | Tax Rate | |||||||||||||
GAAP | $32,364 | $ 11,216 | 65.3 % | $ | 5,144 | 15.9 % | $ | 4,837 | $ | 3,676 | $ | 2.76 | 23.4 % | ||||||||
Non-GAAP Adjustments: | |||||||||||||||||||||
Amortization of intangible assets | - | - | - | 1,693 | 5.2 | 1,693 | 1,435 | 1.08 | 15.2 | ||||||||||||
Restructuring and associated costs (2) | - | (55) | 0.2 | 389 | 1.2 | 389 | 323 | 0.24 | 17.0 | ||||||||||||
Acquisition and divestiture-related items (3) | - | (100) | 0.3 | 777 | 2.4 | 777 | 664 | 0.50 | 14.5 | ||||||||||||
Certain litigation charges | - | - | - | 149 | 0.5 | 149 | 118 | 0.09 | 20.8 | ||||||||||||
(Gain)/loss on minority investments (4) | - | - | - | - | - | 308 | 305 | 0.23 | 0.6 | ||||||||||||
Medical device regulations (5) | - | (81) | 0.3 | 119 | 0.4 | 119 | 97 | 0.07 | 18.5 | ||||||||||||
Certain tax adjustments, net (6) | - | - | - | - | - | - | 299 | 0.22 | - | ||||||||||||
Non-GAAP | $32,364 | $ 10,980 | 66.1 % | $ | 8,272 | 25.6 % | $ | 8,273 | $ | 6,918 | $ | 5.20 | 16.0 % | ||||||||
Currency impact | (31) | (114) | 0.3 | 507 | 1.6 | 0.33 | |||||||||||||||
Currency Adjusted | $32,333 | $ 10,866 | 66.4 % | $ | 8,779 | 27.2 % | $ | 5.53 | |||||||||||||
Fiscal year ended April 28, 2023 | |||||||||||||||||||||
Cost of | Gross | Operating | Income | Net Income | |||||||||||||||||
Net | Operating | Before | Diluted | Effective | |||||||||||||||||
(in millions, except per share data) | Products | Margin | Profit | Income | attributable | ||||||||||||||||
Sales | Sold | Percent | Profit | Percent | Taxes | to Medtronic | EPS | Tax Rate | |||||||||||||
GAAP | $31,227 | $ 10,719 | 65.7 % | $ | 5,485 | 17.6 % | $ | 5,364 | $ | 3,758 | $ | 2.82 | 29.5 % | ||||||||
Non-GAAP Adjustments: | |||||||||||||||||||||
Amortization of intangible assets | - | - | - | 1,698 | 5.4 | 1,698 | 1,443 | 1.08 | 15.0 | ||||||||||||
Restructuring and associated costs (2) | - | (97) | 0.3 | 647 | 2.1 | 647 | 507 | 0.38 | 21.5 | ||||||||||||
Acquisition and divestiture-related items (7) | - | (66) | 0.2 | 345 | 1.1 | 345 | 316 | 0.24 | 8.4 | ||||||||||||
Certain litigation charges, net (8) | - | - | - | (30) | (0.1) | (30) | (23) | (0.02) | 26.7 | ||||||||||||
(Gain)/loss on minority investments (4) | - | - | - | - | - | (33) | (29) | (0.02) | (6.1) | ||||||||||||
Medical device regulations (5) | - | (88) | 0.3 | 150 | 0.5 | 150 | 120 | 0.09 | 20.0 | ||||||||||||
Debt redemption premium and other charges (9) | - | - | - | - | - | 53 | 42 | 0.03 | 20.8 | ||||||||||||
Certain tax adjustments, net (10) | - | - | - | - | - | - | 910 | 0.68 | - | ||||||||||||
Non-GAAP | $31,227 | $ 10,469 | 66.5 % | $ | 8,295 | 26.6 % | $ | 8,194 | $ | 7,045 | $ | 5.29 | 13.8 % | ||||||||
See description of non-GAAP financial measures contained in the press release dated May 23, 2024.
- The data in this schedule has been intentionally rounded to the nearest million or $0.01 for EPS figures, and, therefore, may not sum.
- Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program, consulting expenses, and asset write-offs.
- The charges predominantly include $439 million of charges related to the February 20, 2024 decision to exit the Company's ventilator product line, which primarily includes long-lived intangible asset impairments and inventory write-downs. In addition, other charges primarily consist of changes in fair value of contingent consideration and associated costs related to the previously contemplated separation of the PMRI businesses.
- We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.
- The charges represent incremental costs of complying with the new European Union medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs, which are limited to a specific time period.
- The net charge primarily relates to an income tax reserve adjustment associated with the June 2023, Israeli Central-Lod District Court decision and the establishment of a valuation allowance against certain net operating losses which were partially offset by a benefit from the change in a Swiss Cantonal tax rate associated with previously established deferred tax assets from intercompany intellectual property transactions and the step up in tax basis for Swiss Cantonal purposes.
- The charges predominantly include non-cashpre-tax impairments, primarily related to goodwill, changes in the carrying value of the disposal group, and other associated costs, as a result of the April 2023 sale of half of the Company's Renal Care Solutions (RCS) business; business combination costs, and associated costs related to the previously contemplated separation of the PMRI businesses.
- Certain litigation includes $35 million income related to the one-time payment received as a result of the Intellectual Property Agreement entered into with Edwards Lifesciences in April 2023.
- The charges relate to the early redemption of approximately $2.3 billion of debt and were recorded within interest expense, net within the consolidated statements of income.
- The charge primarily relates to a $764 million reserve adjustment that was a direct result of the U.S. Tax Court opinion, issued in August 2022, on the previously disclosed litigation regarding the allocation of income between Medtronic, Inc. and its wholly owned subsidiary operating in Puerto Rico. Additional charges relate to the reduction of deferred tax assets due to the disallowance of certain interest deductions and the change in the reporting currency for certain carryover attributes, and the amortization on previously established deferred tax assets from intercompany intellectual property transactions.
6
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended April 26, 2024 | ||||||||||||||||||||
SG&A | R&D | Other | Other | |||||||||||||||||
Operating | Operating | Other Non- | ||||||||||||||||||
SG&A | Expense as | R&D | Expense | (Income) | (Inc.)/Exp., | |||||||||||||||
(in millions) | Net Sales | a % of Net | as a % of | Expense, | net as a % of | Operating | ||||||||||||||
Expense | Sales | Expense | Net Sales | net | Net Sales | Income, net | ||||||||||||||
GAAP | $ | 8,589 | $ | 2,765 | 32.2 % | $ | 675 | 7.9 % | $ | 477 | 5.6 % | $ | (4) | |||||||
Non-GAAP Adjustments: | ||||||||||||||||||||
Restructuring and associated costs (2) | - | (28) | (0.3) | - | - | - | - | - | ||||||||||||
Acquisition and divestiture-related items (3) | - | (6) | (0.1) | - | - | (530) | (6.2) | - | ||||||||||||
Medical device regulations (4) | - | (1) | - | (9) | (0.1) | - | - | - | ||||||||||||
(Gain)/loss on minority investments (5) | - | - | - | - | - | - | - | (195) | ||||||||||||
Non-GAAP | $ | 8,589 | $ | 2,731 | 31.8 % | $ | 666 | 7.8 % | $ | (52) | (0.6)% | $ | (200) |
Fiscal year ended April 26, 2024 | ||||||||||||||||||||
SG&A | R&D | Other | Other | |||||||||||||||||
Operating | Operating | Other Non- | ||||||||||||||||||
SG&A | Expense as | R&D | Expense | (Income) | (Inc.)/Exp., | |||||||||||||||
(in millions) | Net Sales | a % of Net | as a % of | Expense, | net as a % of | Operating | ||||||||||||||
Expense | Sales | Expense | Net Sales | net | Net Sales | Income, net | ||||||||||||||
GAAP | $ | 32,364 | $ | 10,736 | 33.2 % | $ | 2,735 | 8.5 % | $ | 464 | 1.4 % | $ | (412) | |||||||
Non-GAAP Adjustments: | ||||||||||||||||||||
Restructuring and associated costs (2) | - | (108) | (0.3) | - | - | - | - | - | ||||||||||||
Acquisition and divestiture-related items (3) | - | (71) | (0.2) | - | - | (606) | (1.9) | - | ||||||||||||
Medical device regulations (4) | - | (2) | - | (36) | (0.1) | - | - | - | ||||||||||||
(Gain)/loss on minority investments (5) | - | - | - | - | - | - | - | (308) | ||||||||||||
Non-GAAP | $ | 32,364 | $ | 10,555 | 32.6 % | $ | 2,698 | 8.3 % | $ | (141) | (0.4)% | $ | (720) |
See description of non-GAAP financial measures contained in the press release dated May 23, 2024.
- The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.
- Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses.
- The charges predominantly include $439 million of charges related to the February 20, 2024 decision to exit the Company's ventilator product line, which primarily includes long-lived intangible asset impairments. In addition, other charges primarily related to changes in fair of contingent consideration and associated costs related to the previously contemplated separation of the PMRI businesses.
- The charges represent estimated incremental costs of complying with the new European Union medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs, which are limited to a specific time period.
- We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.
7
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Fiscal Year | ||||||||
(in millions) | 2024 | 2023 | 2022 | |||||
Net cash provided by operating activities | $ | 6,787 | $ | 6,039 | $ | 7,346 | ||
Additions to property, plant, and equipment | (1,587) | (1,459) | (1,368) | |||||
Free Cash Flow (2) | $ | 5,200 | $ | 4,580 | $ | 5,978 | ||
See description of non-GAAP financial measures contained in the press release dated May 23, 2024.
- The data in this schedule has been intentionally rounded to the nearest million, and therefore, may not sum.
- Free cash flow represents operating cash flows less property, plant, and equipment additions.
8
MEDTRONIC PLC
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions) | April 26, 2024 | April 28, 2023 | |||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 1,284 | $ | 1,543 | |
Investments | 6,721 | 6,416 | |||
Accounts receivable, less allowances and credit losses of $173 and $176, respectively | 6,128 | 5,998 | |||
Inventories, net | 5,217 | 5,293 | |||
Other current assets | 2,584 | 2,425 | |||
Total current assets | 21,935 | 21,675 | |||
Property, plant, and equipment, net | 6,131 | 5,569 | |||
Goodwill | 40,986 | 41,425 | |||
Other intangible assets, net | 13,225 | 14,844 | |||
Tax assets | 3,657 | 3,477 | |||
Other assets | 4,047 | 3,959 | |||
Total assets | $ | 89,981 | $ | 90,948 | |
LIABILITIES AND EQUITY | |||||
Current liabilities: | |||||
Current debt obligations | $ | 1,092 | $ | 20 | |
Accounts payable | 2,410 | 2,662 | |||
Accrued compensation | 2,375 | 1,949 | |||
Accrued income taxes | 1,330 | 840 | |||
Other accrued expenses | 3,582 | 3,581 | |||
Total current liabilities | 10,789 | 9,051 | |||
Long-term debt | 23,932 | 24,344 | |||
Accrued compensation and retirement benefits | 1,101 | 1,093 | |||
Accrued income taxes | 1,859 | 2,360 | |||
Deferred tax liabilities | 515 | 708 | |||
Other liabilities | 1,365 | 1,727 | |||
Total liabilities | 39,561 | 39,283 | |||
Commitments and contingencies | |||||
Shareholders' equity: | |||||
Ordinary shares- par value $0.0001, 2.6 billion shares authorized, 1,311,337,531 and | |||||
1,330,809,036 shares issued and outstanding, respectively | - | - | |||
Additional paid-in capital | 23,129 | 24,590 | |||
Retained earnings | 30,403 | 30,392 | |||
Accumulated other comprehensive loss | (3,318) | (3,499) | |||
Total shareholders' equity | 50,214 | 51,483 | |||
Noncontrolling interests | 206 | 182 | |||
Total equity | 50,420 | 51,665 | |||
Total liabilities and equity | $ | 89,981 | $ | 90,948 | |
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.
9
MEDTRONIC PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Fiscal Year | ||||||||
(in millions) | 2024 | 2023 | 2022 | |||||
Operating Activities: | ||||||||
Net income | $ | 3,705 | $ | 3,784 | $ | 5,062 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 2,647 | 2,697 | 2,707 | |||||
Provision for credit losses | 90 | 73 | 58 | |||||
Deferred income taxes | (508) | (226) | (604) | |||||
Stock-based compensation | 393 | 355 | 359 | |||||
Loss on debt extinguishment | - | 53 | - | |||||
Asset impairments and inventory write-downs | 371 | - | 515 | |||||
Other, net | 573 | 270 | 138 | |||||
Change in operating assets and liabilities, net of acquisitions and divestitures: | ||||||||
Accounts receivable, net | (391) | (576) | (477) | |||||
Inventories, net | (139) | (939) | (560) | |||||
Accounts payable and accrued liabilities | 391 | 696 | 213 | |||||
Other operating assets and liabilities | (345) | (148) | (65) | |||||
Net cash provided by operating activities | 6,787 | 6,039 | 7,346 | |||||
Investing Activities: | ||||||||
Acquisitions, net of cash acquired | (211) | (1,867) | (91) | |||||
Additions to property, plant, and equipment | (1,587) | (1,459) | (1,368) | |||||
Purchases of investments | (7,748) | (7,514) | (9,882) | |||||
Sales and maturities of investments | 7,441 | 7,343 | 9,692 | |||||
Other investing activities, net | (261) | 4 | (10) | |||||
Net cash used in investing activities | (2,366) | (3,493) | (1,659) | |||||
Financing Activities: | ||||||||
Change in current debt obligations, net | 1,073 | - | - | |||||
Proceeds from short-term borrowings (maturities greater than 90 days) | - | 2,284 | - | |||||
Repayments from short-term borrowings (maturities greater than 90 days) | - | (2,279) | - | |||||
Issuance of long-term debt | - | 5,409 | - | |||||
Payments on long-term debt | - | (6,012) | (1) | |||||
Dividends to shareholders | (3,666) | (3,616) | (3,383) | |||||
Issuance of ordinary shares | 284 | 308 | 429 | |||||
Repurchase of ordinary shares | (2,138) | (645) | (2,544) | |||||
Other financing activities | (3) | (409) | 163 | |||||
Net cash used in financing activities | (4,450) | (4,960) | (5,336) | |||||
Effect of exchange rate changes on cash and cash equivalents | (230) | 243 | (231) | |||||
Net change in cash and cash equivalents | (259) | (2,171) | 121 | |||||
Cash and cash equivalents at beginning of period | 1,543 | 3,714 | 3,593 | |||||
Cash and cash equivalents at end of period | $ | 1,284 | $ | 1,543 | $ | 3,714 | ||
Supplemental Cash Flow Information | ||||||||
Cash paid for: | ||||||||
Income taxes | $ | 1,622 | $ | 1,548 | $ | 996 | ||
Interest | 826 | 606 | 540 |
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.
10
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Medtronic plc published this content on 23 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2024 11:13:09 UTC.