Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Jul. 25, 2014 | |
Document And Entity Information [Abstract] | ' |
Document Type | 'S-4/A |
Amendment Flag | 'true |
Amendment description | 'Amendement No. 4 |
Document Period End Date | 25-Jul-14 |
Trading Symbol | 'MDT |
Entity Registrant Name | 'Medtronic Holdings Ltd |
Entity Central Index Key | '0001613103 |
Entity Filer Category | 'Large Accelerated Filer |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Earnings (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' | ' |
Net Sales | $4,273 | $4,083 | $17,005 | $16,590 | $16,184 |
Costs and expenses: | ' | ' | ' | ' | ' |
Cost of products sold | 1,105 | 1,022 | 4,333 | 4,126 | 3,889 |
Research and development expense | 365 | 360 | 1,477 | 1,557 | 1,490 |
Selling, general, and administrative expense | 1,506 | 1,416 | 5,847 | 5,698 | 5,623 |
Special Charges | 0 | 40 | 40 | 0 | 0 |
Restructuring charges, net | 30 | 18 | 78 | 172 | 87 |
Certain litigation charges, net | ' | ' | 770 | 245 | 90 |
Acquisition-related items | 41 | -96 | 117 | -49 | 12 |
Amortization of intangible assets | 87 | 86 | 349 | 331 | 335 |
Other expense, net | 51 | 44 | 181 | 108 | 364 |
Interest expense, net | 5 | 40 | 108 | 151 | 149 |
Total costs and expenses | 3,190 | 2,930 | 13,300 | 12,339 | 12,039 |
Earnings before income taxes | 1,083 | 1,153 | 3,705 | 4,251 | 4,145 |
Provision for income taxes | 212 | 200 | 640 | 784 | 730 |
Earnings from continuing operations | ' | ' | 3,065 | 3,467 | 3,415 |
Discontinued operations, net of tax: | ' | ' | ' | ' | ' |
Earnings from operations of Physio-Control | ' | ' | 0 | 0 | 32 |
Physio-Control divestiture-related costs | ' | ' | 0 | 0 | -34 |
Gain on sale of Physio-Control | ' | ' | 0 | 0 | 204 |
Earnings from discontinued operations | ' | ' | 0 | 0 | 202 |
Net earnings | $871 | $953 | $3,065 | $3,467 | $3,617 |
Basic earnings per share: | ' | ' | ' | ' | ' |
Earnings from continuing operations (per share) | ' | ' | $3.06 | $3.40 | $3.24 |
Net earnings (usd per share) | $0.88 | $0.94 | $3.06 | $3.40 | $3.43 |
Diluted earnings per share: | ' | ' | ' | ' | ' |
Earnings from continuing operations (per share) | ' | ' | $3.02 | $3.37 | $3.22 |
Net earnings (usd per share) | $0.87 | $0.93 | $3.02 | $3.37 | $3.41 |
Weighted average shares outstanding: | ' | ' | ' | ' | ' |
Basic weighted average shares outstanding (shares) | 992.6 | 1,009.70 | 1,002.10 | 1,019.30 | 1,053.90 |
Diluted weighted average shares outstanding | 1,005.20 | 1,021.20 | 1,013.60 | 1,027.50 | 1,059.90 |
Cash dividends declared per common share | $0.31 | $0.28 | $1.12 | $1.04 | $0.97 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' |
Net earnings | $871 | $953 | $3,065 | $3,467 | $3,617 |
Other comprehensive income/(loss), net of tax: | ' | ' | ' | ' | ' |
Unrealized gain (loss) on available-for-sale securities, net | 54 | -95 | -103 | -33 | -66 |
Translation adjustment | 1 | -5 | 13 | -21 | -137 |
Net change in retirement obligations, net | 17 | 14 | 87 | -18 | -227 |
Unrealized (loss) gain on derivatives, net | 37 | 2 | -102 | 53 | 181 |
Other comprehensive (loss) income, net of tax | 109 | -84 | -105 | -19 | -249 |
Comprehensive income | $980 | $869 | $2,960 | $3,448 | $3,368 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' |
Unrealized gain/(loss) on investments, tax expense/(benefit) | $32 | ($54) | ($58) | ($19) | ($38) |
Net change in retirement obligations, tax expense/(benefit) | 6 | 9 | 72 | -4 | -130 |
Unrealized gain/(loss) on derivatives, tax expense/(benefit) | $21 | $1 | ($60) | $30 | $105 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 |
In Millions, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $1,336 | $1,403 | $919 |
Investments | 12,626 | 12,838 | 10,211 |
Accounts receivable | 3,690 | 3,811 | 3,727 |
Inventories | 1,836 | 1,725 | 1,712 |
Tax assets | 599 | 736 | 539 |
Prepaid expenses and other current assets | 683 | 697 | 744 |
Total current assets | 20,770 | 21,210 | 17,852 |
Property, plant, and equipment | 6,541 | 6,439 | 6,152 |
Accumulated depreciation | -4,165 | -4,047 | -3,662 |
Property, plant, and equipment, net | 2,376 | 2,392 | 2,490 |
Goodwill | 10,696 | 10,593 | 10,329 |
Other intangible assets, net | 2,341 | 2,286 | 2,673 |
Long-term tax assets | 199 | 300 | 232 |
Other assets | 1,172 | 1,162 | 1,324 |
Total assets | 37,554 | 37,943 | 34,900 |
Current liabilities: | ' | ' | ' |
Short-term borrowings | 2,477 | 1,613 | 910 |
Accounts payable | 685 | 742 | 681 |
Accrued compensation | 787 | 1,015 | 1,011 |
Accrued income taxes | 153 | 164 | 88 |
Deferred tax liabilities | 19 | 19 | 16 |
Other accrued expenses | 1,312 | 2,006 | 1,244 |
Total current liabilities | 5,433 | 5,559 | 3,950 |
Long-term debt | 10,323 | 10,315 | 9,741 |
Long-term accrued compensation and retirement benefits | 680 | 662 | 752 |
Long-term accrued income taxes | 1,251 | 1,343 | 1,168 |
Long-term deferred tax liabilities | 377 | 386 | 340 |
Other long-term liabilities | 242 | 235 | 278 |
Total liabilities | 18,306 | 18,500 | 16,229 |
Commitments and contingencies | ' | ' | ' |
Shareholders' equity: | ' | ' | ' |
Preferred stock | 0 | 0 | 0 |
Common stock | 99 | 100 | 102 |
Retained earnings | 19,637 | 19,940 | 19,061 |
Accumulated other comprehensive loss | -488 | -597 | -492 |
Total shareholders' equity | 19,248 | 19,443 | 18,671 |
Total liabilities and shareholders' equity | $37,554 | $37,943 | $34,900 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 |
In Millions, except Share data, unless otherwise specified | |||
Statement of Financial Position [Abstract] | ' | ' | ' |
Allowances for accounts receivable | $116 | $115 | $98 |
Preferred stock, par value | $1 | $1 | $1 |
Preferred stock, shares authorized | ' | 2,500,000 | 2,500,000 |
Preferred stock, shares outstanding | ' | 0 | 0 |
Common stock, par value | $0.10 | $0.10 | $0.10 |
Common stock, shares authorized | ' | 1,600,000,000 | 1,600,000,000 |
Common stock, shares issued | ' | 998,999,125 | 1,016,014,005 |
Common stock, shares outstanding | ' | 998,999,125 | 1,016,014,005 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Operating Activities: | ' | ' | ' | ' | ' |
Net earnings | $871 | $953 | $3,065 | $3,467 | $3,617 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | ' | ' | ' |
Depreciation and amortization | 215 | 208 | 850 | 819 | 833 |
Amortization of debt discount and issuance costs | 3 | 2 | 8 | 104 | 85 |
Gain on sale of Physio-Control | ' | ' | 0 | 0 | -218 |
Acquisition-related items | 2 | -96 | 110 | -74 | 45 |
Provision for doubtful accounts | 8 | 14 | 43 | 51 | 66 |
Deferred income taxes | 98 | 30 | -207 | -7 | 14 |
Stock-based compensation | 34 | 31 | 145 | 152 | 161 |
Other, net | -12 | 0 | -28 | 0 | 0 |
Change in operating assets and liabilities, net of acquisitions: | ' | ' | ' | ' | ' |
Accounts receivable, net | 94 | 85 | -70 | 1 | -252 |
Inventories | -96 | -95 | -39 | 93 | -185 |
Accounts payable and accrued liabilities | -163 | -330 | -117 | 481 | 300 |
Other operating assets and liabilities | 17 | 181 | 444 | -215 | 155 |
Certain litigation charges, net | ' | ' | 770 | 245 | 90 |
Certain litigation payments | -761 | 0 | -15 | -175 | -241 |
Net cash provided by operating activities | 310 | 983 | 4,959 | 4,942 | 4,470 |
Investing Activities: | ' | ' | ' | ' | ' |
Acquisitions, net of cash acquired | -146 | -17 | -385 | -820 | -556 |
Proceeds from divestiture of Physio-Control | ' | ' | 0 | 0 | 386 |
Additions to property, plant, and equipment | -109 | -78 | -396 | -457 | -484 |
Purchases of investments | -1,600 | -2,757 | -10,895 | -12,321 | -9,704 |
Sales and maturities of investments | 1,853 | 2,195 | 8,111 | 10,511 | 7,717 |
Other investing activities, net | -4 | -9 | -29 | -14 | -21 |
Net cash used in investing activities | -6 | -666 | -3,594 | -3,101 | -2,662 |
Financing Activities: | ' | ' | ' | ' | ' |
Acquisition-related contingent consideration | -5 | -1 | -1 | -18 | -118 |
Change in short-term borrowings, net | 862 | 761 | 127 | -720 | 165 |
Repayment of short-term borrowings (maturities greater than 90 days) | 0 | -125 | -1,301 | -2,700 | -3,275 |
Proceeds from short-term borrowings (maturities greater than 90 days) | ' | ' | 1,176 | 2,628 | 2,525 |
Issuance of long-term debt | ' | ' | 1,994 | 2,980 | 1,210 |
Payments on long-term debt | -3 | -4 | -565 | -2,214 | -24 |
Dividends to shareholders | -304 | -281 | -1,116 | -1,055 | -1,021 |
Issuance of common stock | 154 | 568 | 1,307 | 267 | 96 |
Repurchase of common stock | -1,065 | -1,340 | -2,553 | -1,247 | -1,440 |
Other financing activities | 6 | 0 | 14 | -22 | 0 |
Net cash used in financing activities | -355 | -422 | -918 | -2,101 | -1,882 |
Effect of exchange rate changes on cash and cash equivalents | -16 | 14 | 37 | 7 | -71 |
Net change in cash and cash equivalents | -67 | -91 | 484 | -253 | -145 |
Cash and cash equivalents at beginning of period | 1,403 | 919 | 919 | 1,172 | 1,317 |
Cash and cash equivalents at end of period | 1,336 | 828 | 1,403 | 919 | 1,172 |
Supplemental Cash Flow Information | ' | ' | ' | ' | ' |
Cash paid for income taxes | 146 | 70 | 521 | 537 | 454 |
Cash paid for interest | $22 | $27 | $394 | $333 | $312 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
In Millions, except Share data | ||||
Balance as of at Apr. 29, 2011 | $15,968 | $107 | $16,085 | ($224) |
Balance (shares) as of at Apr. 29, 2011 | ' | 1,070,000,000 | ' | ' |
Net earnings | 3,617 | ' | 3,617 | ' |
Other comprehensive income (loss) | -249 | ' | ' | -249 |
Dividends to shareholders | -1,021 | ' | -1,021 | ' |
Issuance of common stock under stock purchase and award plans | 96 | 0 | 96 | ' |
Issuance of common stock under stock purchase and award plans, shares | ' | 4,000,000 | ' | ' |
Repurchase of common stock | -1,440 | -3 | -1,437 | ' |
Repurchase of common stock, shares | ' | -37,000,000 | ' | ' |
Tax benefit (deficit) from exercise of stock-based awards | -19 | ' | -19 | ' |
Stock-based compensation | 161 | ' | 161 | ' |
Balance as of at Apr. 27, 2012 | 17,113 | 104 | 17,482 | -473 |
Balance (shares) as of at Apr. 27, 2012 | ' | 1,037,000,000 | ' | ' |
Net earnings | 3,467 | ' | 3,467 | ' |
Other comprehensive income (loss) | -19 | ' | ' | -19 |
Dividends to shareholders | -1,055 | ' | -1,055 | ' |
Issuance of common stock under stock purchase and award plans | 267 | 1 | 266 | ' |
Issuance of common stock under stock purchase and award plans, shares | ' | 10,000,000 | ' | ' |
Repurchase of common stock | -1,247 | -3 | -1,244 | ' |
Repurchase of common stock, shares | ' | -31,000,000 | ' | ' |
Tax benefit (deficit) from exercise of stock-based awards | -7 | ' | -7 | ' |
Stock-based compensation | 152 | ' | 152 | ' |
Balance as of at Apr. 26, 2013 | 18,671 | 102 | 19,061 | -492 |
Balance (shares) as of at Apr. 26, 2013 | 1,016,014,005 | 1,016,000,000 | ' | ' |
Net earnings | 3,065 | ' | 3,065 | ' |
Other comprehensive income (loss) | -105 | ' | ' | -105 |
Dividends to shareholders | -1,116 | ' | -1,116 | ' |
Issuance of common stock under stock purchase and award plans | 1,307 | 3 | 1,304 | ' |
Issuance of common stock under stock purchase and award plans, shares | ' | 31,000,000 | ' | ' |
Repurchase of common stock | -2,553 | -5 | -2,548 | ' |
Repurchase of common stock, shares | ' | -48,000,000 | ' | ' |
Tax benefit (deficit) from exercise of stock-based awards | 29 | ' | 29 | ' |
Stock-based compensation | 145 | ' | 145 | ' |
Balance as of at Apr. 25, 2014 | $19,443 | $100 | $19,940 | ($597) |
Balance (shares) as of at Apr. 25, 2014 | 998,999,125 | 999,000,000 | ' | ' |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Jul. 25, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Note 1 – Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S.) (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information necessary for a fair presentation of results of operations, comprehensive income, financial condition, and cash flows in conformity with U.S. GAAP. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of Medtronic, Inc. and its subsidiaries (Medtronic or the Company) for the periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. For further information, refer to the consolidated financial statements and notes thereto included in this joint proxy statement/prospectus beginning on page F-43. | |
Medtronic’s fiscal years 2015, 2014, and 2013 will end or ended on April 24, 2015, April 25, 2014, and April 26, 2013, respectively. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Jul. 25, 2014 | |
Text Block [Abstract] | ' |
New Accounting Pronouncements | ' |
Note 2 – New Accounting Pronouncements | |
Recently Adopted | |
In July 2013, the Financial Accounting Standards Board (FASB) issued amended guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. The guidance requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented as a reduction of a deferred tax asset when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists, with certain exceptions. Medtronic prospectively adopted this accounting guidance in the first quarter of fiscal year 2015 and its adoption did not have a material impact on Medtronic’s consolidated financial statements. | |
In March 2013, the FASB issued amended guidance on a parent company’s accounting for the cumulative translation adjustment (CTA) recorded in accumulated other comprehensive income (AOCI) associated with a foreign entity. The amendment requires a parent to release into net income the CTA related to its investment in a foreign entity when it either sells a part or all of its investment, or no longer holds a controlling financial interest, in a subsidiary or group of assets within a foreign entity. This accounting guidance is effective prospectively for Medtronic in the first quarter of fiscal year 2015. This amended guidance had no immediate impact on Medtronic’s financial position or results of operations as Medtronic had no event or transaction described above. | |
Not Yet Adopted | |
In April 2014, the FASB issued amended guidance for reporting discontinued operations. The amended guidance changes the criteria for determining when the results of operations are to be reported as discontinued operations and expands the related disclosure requirements. The guidance defines a discontinued operation as a disposal of a component or group of components that is disposed of or classified as held for sale which is a strategic shift that has, or will have, a major effect on financial position and results of operations. This accounting guidance is effective prospectively for Medtronic beginning in the first quarter of fiscal year 2016, with early adoption permitted. The adoption is not expected to have a material impact on Medtronic’s consolidated financial statements. | |
In May 2014, the FASB issued amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance is effective for Medtronic beginning in the first quarter of fiscal year 2018 using one of two prescribed retrospective methods. Early adoption is not permitted. Medtronic is evaluating the impact of the amended revenue recognition guidance on Medtronic’s consolidated financial statements. |
Acquisitions_and_AcquisitionRe
Acquisitions and Acquisition-Related Items | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||
Business Combinations [Abstract] | ' | ' | ||||||||||||||||||||
Acquisitions and Acquisition-Related Items | ' | ' | ||||||||||||||||||||
4. Acquisitions and Acquisition-Related Items | ||||||||||||||||||||||
Note 3 – Acquisitions and Acquisition-Related Items | The Company had various acquisitions and other acquisition-related activity during fiscal years 2014, 2013, and 2012. Certain acquisitions were accounted for as business combinations as noted below. In accordance with authoritative guidance on business combination accounting, the assets and liabilities of the company acquired were recorded as of the acquisition date, at their respective fair values, and consolidated. The pro forma impact of these acquisitions was not significant, individually or in the aggregate, to the results of the Company for the fiscal years ended April 25, 2014, April 26, 2013, or April 27, 2012. The results of operations related to each company acquired have been included in the Company’s consolidated statements of earnings since the date each company was acquired. | |||||||||||||||||||||
Fiscal Year 2014 | ||||||||||||||||||||||
Medtronic had various acquisitions and other acquisition-related activity during the first quarter of fiscal years 2015 and 2014. Certain acquisitions were accounted for as business combinations as noted below. In accordance with authoritative guidance on business combination accounting, the assets and liabilities of Medtronic acquired were recorded as of the acquisition date, at their respective fair values, and consolidated. The pro forma impact of these acquisitions was not significant, individually or in the aggregate, to the results of Medtronic for the three months ended July 25, 2014 or July 26, 2013. The results of operations related to each company acquired have been included in Medtronic’s condensed consolidated statements of earnings since the date each company was acquired. | TYRX, Inc. | |||||||||||||||||||||
On December 30, 2013, the Company acquired TYRX, Inc. (TYRX), a privately-held developer of antibiotic drug and implanted medical device combinations. TYRX’s products include those designed to reduce surgical site infections associated with implantable pacemakers, defibrillators, and spinal cord neurostimulators. Under the terms of the agreement, the transaction included an initial up-front payment of $159 million, representing a purchase price net of acquired cash, including the assumption and settlement of existing TYRX debt and direct acquisition costs. Total consideration for the transaction was approximately $222 million, which included estimated fair values for product development-based and revenue-based contingent consideration of $25 million and $35 million, respectively. The product development-based contingent consideration includes a future potential payment of $40 million upon achieving certain milestones, and the revenue-based contingent consideration payments equal TYRX’s actual annual revenue growth for the Company’s fiscal years 2015 and 2016. Based upon the preliminary acquisition valuation, the Company acquired $94 million of technology-based intangible assets with an estimated useful life of 14 years and $132 million of goodwill. The acquired goodwill is not deductible for tax purposes. | ||||||||||||||||||||||
Pending Acquisition of Covidien plc | The Company accounted for the acquisition of TYRX as a business combination using the acquisition method of accounting. The assets acquired and liabilities assumed were recorded at their respective fair values as of the acquisition date. During the fourth quarter of fiscal year 2014, the Company recorded minor adjustments to goodwill and long-term deferred tax liabilities, net. The fair values of the assets acquired and liabilities assumed are as follows: | |||||||||||||||||||||
On June 15, 2014, Medtronic, Inc. entered into a Transaction Agreement (the Transaction Agreement) by and among Medtronic, Inc., Covidien public limited company, an Irish public limited company (Covidien), Medtronic Holdings Limited (f/k/a Kalani I Limited), a private limited company organized under the laws of Ireland that will be renamed Medtronic plc (New Medtronic), Makani II Limited, a private limited company organized under the laws of Ireland and a wholly-owned subsidiary of New Medtronic (IrSub), Aviation Acquisition Co., Inc., a Minnesota corporation (U.S. AcquisitionCo), and Aviation Merger Sub, LLC, a Minnesota limited liability company and a wholly-owned subsidiary of U.S. AcquisitionCo (MergerSub). Under the terms of the Transaction Agreement, (i) New Medtronic and IrSub will acquire Covidien (the Acquisition) pursuant to the Irish Scheme of Arrangement under Section 201, and a capital reduction under Sections 72 and 74, of the Irish Companies Act of 1963 (the Arrangement) and (ii) MergerSub will merge with and into Medtronic, Inc., with Medtronic, Inc. continuing as the surviving corporation in the merger (such merger, the Merger, and the Merger together with the Acquisition, the Pending Acquisition). As a result of the Pending Acquisition, both Medtronic, Inc. and Covidien will become wholly-owned direct or indirect subsidiaries of New Medtronic. | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
(a) At the effective time of the Arrangement, Covidien shareholders will be entitled to receive $35.19 in cash and 0.956 of a newly issued New Medtronic share (the Arrangement Consideration) in exchange for each Covidien share held by such shareholders, and (b) at the effective time of the Merger, each share of Medtronic, Inc. common stock will be converted into the right to receive one New Medtronic share. The total cash and stock value of the Pending Acquisition is approximately $42.9 billion based on Medtronic, Inc.’s closing share price of $60.70 on June 13, 2014. It is expected that immediately after the closing of the Pending Acquisition, Covidien shareholders will own approximately 30 percent of New Medtronic on a fully diluted basis. Shares of New Medtronic are expected to trade on the New York Stock Exchange. | Current assets | $ | 6 | |||||||||||||||||||
Property, plant, and equipment | 1 | |||||||||||||||||||||
The Transaction Agreement may be terminated by mutual written consent of the parties. The Transaction Agreement also contains certain termination rights, including, among others, the right of either party to terminate if (a) the Arrangement has not become effective by March 15, 2015 (the End Date), subject to certain conditions, provided that the End Date will be extended to June 15, 2015 in certain circumstances, (b) the Covidien or Medtronic, Inc. shareholder approvals are not obtained, (c) the other party breaches its representations and covenants and such breach would result in the closing conditions not being satisfied, subject to a cure period, (d) the Irish High Court declines to sanction the Arrangement, unless both parties agree to appeal the decision, or (e) there is a failure of the tax condition as described in Medtronic, Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC) on June 16, 2014. Covidien also has the right, prior to the receipt of Covidien shareholder approval, to terminate the Transaction Agreement to accept a Covidien Superior Proposal (as defined in the Transaction Agreement) in certain circumstances. | Intangible assets | 94 | ||||||||||||||||||||
Goodwill | 132 | |||||||||||||||||||||
The Transaction Agreement also provides that Medtronic, Inc. must pay Covidien a termination fee of $850 million if the Transaction Agreement is terminated because the Medtronic, Inc. board of directors changes its recommendation for the transaction and the Medtronic, Inc. shareholders vote against the Transaction, and either (i) Covidien obtained the requisite Covidien shareholder approval or (ii) Medtronic, Inc. effected such termination prior to the completion of the Covidien shareholder meeting. | ||||||||||||||||||||||
Total assets acquired | 233 | |||||||||||||||||||||
The consummation of the Pending Acquisition is subject to certain conditions, including approvals by Medtronic, Inc. and Covidien shareholders. In addition, the proposed transaction requires regulatory clearances in the U.S., the European Union, China, and certain other countries. The Pending Acquisition is expected to close in the fourth calendar quarter of 2014 or early 2015. Covidien is a global health care products company that creates innovative medical solutions for better patient outcomes and delivers value through clinical leadership and excellence. Covidien develops, manufactures, and sells a diverse range of industry-leading medical device and supply products. | ||||||||||||||||||||||
See Note 8 to the condensed consolidated financial statements for further information regarding the financing of the Pending Acquisition. | Current liabilities | 4 | ||||||||||||||||||||
Long-term deferred tax liabilities, net | 7 | |||||||||||||||||||||
Visualase, Inc. | ||||||||||||||||||||||
Total liabilities assumed | 11 | |||||||||||||||||||||
On July 25, 2014, Medtronic acquired Visualase, Inc. (Visualase), a privately held developer of minimally invasive MRI guided laser ablation for surgical applications. Total consideration for the transaction was approximately $97 million. Based upon a preliminary acquisition valuation, Medtronic acquired $66 million of technology-based intangible assets with an estimated useful life of 10 years at the time of acquisition and $49 million of goodwill. The acquired goodwill is not deductible for tax purposes. | ||||||||||||||||||||||
Net assets acquired | $ | 222 | ||||||||||||||||||||
Corventis, Inc. | ||||||||||||||||||||||
On June 20, 2014, Medtronic acquired Corventis, Inc. (Corventis), a privately held developer of wearable, wireless technologies for cardiac disease. Total consideration for the transaction was approximately $131 million, including settlement of outstanding debt to Medtronic of $50 million. Based upon a preliminary acquisition valuation, Medtronic acquired $80 million of technology-based intangible assets with an estimated useful life of 16 years at the time of acquisition and $50 million of goodwill. The acquired goodwill is not deductible for tax purposes. | Cardiocom, LLC | |||||||||||||||||||||
On August 7, 2013, the Company acquired Cardiocom, LLC (Cardiocom), a privately-held developer and provider of integrated solutions for the management of chronic diseases such as heart failure, diabetes, and hypertension. Cardiocom’s products and services include remote monitoring and patient-centered software to enable efficient care coordination and specialized telehealth nurse support. Total consideration for the transaction was approximately $193 million. Based upon the acquisition valuation, the Company acquired $61 million of customer-related intangible assets with an estimated useful life of 7 years and $123 million of goodwill. The acquired goodwill is deductible for tax purposes. | ||||||||||||||||||||||
TYRX, Inc. | The Company accounted for the acquisition of Cardiocom as a business combination using the acquisition method of accounting. The assets acquired and liabilities assumed were recorded at their respective fair values as of the acquisition date. The fair values of the assets acquired and liabilities assumed are as follows: | |||||||||||||||||||||
On December 30, 2013, Medtronic acquired TYRX, Inc. (TYRX), a privately held developer of antibiotic drug and implanted medical device combinations. TYRX’s products include those designed to reduce surgical site infections associated with implantable pacemakers, defibrillators, and spinal cord neurostimulators. Under the terms of the agreement, the transaction included an initial up-front payment of $159 million, representing a purchase price amount that was net of acquired cash, including the assumption and settlement of existing TYRX debt and direct acquisition costs. Total consideration for the transaction was approximately $222 million, which included estimated fair values for product development-based and revenue-based contingent consideration of $25 million and $35 million, respectively. The product development-based contingent consideration includes a future potential payment of $40 million upon achieving certain milestones, and the revenue-based contingent consideration payments would be equal to TYRX’s actual annual revenue growth for Medtronic’s fiscal years 2015 and 2016. Based upon a preliminary acquisition valuation, Medtronic acquired $94 million of technology-based intangible assets with an estimated useful life of 14 years at the time of acquisition and $132 million of goodwill. The acquired goodwill is not deductible for tax purposes. | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
The fair values of the assets acquired and liabilities assumed are as follows: | Current assets | $ | 14 | |||||||||||||||||||
Property, plant, and equipment | 7 | |||||||||||||||||||||
Intangible assets | 61 | |||||||||||||||||||||
Goodwill | 123 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Current assets | $ | 6 | Total assets acquired | 205 | ||||||||||||||||||
Property, plant, and equipment | 1 | |||||||||||||||||||||
Intangible assets | 94 | Current liabilities | 12 | |||||||||||||||||||
Goodwill | 132 | |||||||||||||||||||||
Total liabilities assumed | 12 | |||||||||||||||||||||
Total assets acquired | 233 | |||||||||||||||||||||
Net assets acquired | $ | 193 | ||||||||||||||||||||
Current liabilities | 4 | |||||||||||||||||||||
Long-term deferred tax liabilities, net | 7 | Acquisition-Related Items | ||||||||||||||||||||
During fiscal year 2014, the Company recorded net charges from acquisition-related items of $117 million, primarily including IPR&D and long-lived asset impairment charges of $236 million related to the Ardian, Inc. (Ardian) acquisition and income of $138 million related to the change in fair value of contingent consideration associated with acquisitions subsequent to April 29, 2009. The Ardian impairment resulted from the Company’s January 2014 announcement that the U.S. pivotal trial in renal denervation for treatment-resistant hypertension, Symplicity HTN-3, failed to meet its primary efficacy endpoint. Based on the results of the trial, the Company suspended enrollment of its renal denervation hypertension trials that were being conducted in the U.S., Japan, and India. These impairment charges consisted of $192 million related to IPR&D and $44 million related to other long-lived assets. For additional information regarding these impairment assessments, refer to Note 6. The change in fair value of contingent consideration primarily related to adjustments for Ardian, which are based on annual revenue growth through fiscal year 2015. As there was no projected revenue growth through fiscal year 2015, no contingent consideration remained as of April 25, 2014. These amounts are included within acquisition-related items in the consolidated statements of earnings. | ||||||||||||||||||||||
Total liabilities assumed | 11 | Fiscal Year 2013 | ||||||||||||||||||||
China Kanghui Holdings | ||||||||||||||||||||||
Net assets acquired | $ | 222 | On November 1, 2012, the Company acquired China Kanghui Holdings (Kanghui). Kanghui is a Chinese manufacturer and distributor of orthopedic products in trauma, spine, and joint reconstruction. Total consideration for the transaction was approximately $816 million. The total value of the transaction, net of Kanghui’s cash, was approximately $797 million. Based on the acquisition valuation, the Company acquired $288 million of technology-based assets and $53 million of tradenames and customer-related intangible assets that each had a weighted average estimated useful life of 11 years and $409 million of goodwill. The acquired goodwill is not deductible for tax purposes. | |||||||||||||||||||
The Company accounted for the acquisition of Kanghui as a business combination using the acquisition method of accounting. The assets acquired and liabilities assumed were recorded at their respective fair values as of the acquisition date. The fair values of the assets acquired and liabilities assumed are as follows: | ||||||||||||||||||||||
Medtronic accounted for the acquisitions of Corventis, Visualase, and TYRX as business combinations using the acquisition method of accounting. | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Subsequent Acquisitions | Current assets | $ | 106 | |||||||||||||||||||
Property, plant, and equipment | 56 | |||||||||||||||||||||
On August 26, 2014, Medtronic acquired NGC Medical S.p.A. (NGC), a privately-held Italian company that offers a broad suite of hospital managed services. Medtronic had previously invested in NGC and held a 30 percent ownership position in that company. The total consideration, net of this previously-held ownership position, was approximately $238 million. | Intangible assets | 341 | ||||||||||||||||||||
Goodwill | 409 | |||||||||||||||||||||
On August 25, 2014, Medtronic acquired Sapiens Steering Brain Stimulation, a privately-held developer of deep brain stimulation technologies. The total consideration for the transaction was approximately $200 million. | Other assets | 11 | ||||||||||||||||||||
Acquisition-Related Items | Total assets acquired | 923 | ||||||||||||||||||||
During the three months ended July 25, 2014, Medtronic recorded acquisition-related items of $41 million primarily due to costs incurred in connection with the pending Covidien acquisition (an SEC filing fee, amortization of bridge financing fees, advisory, legal, and other costs). | Current liabilities | 29 | ||||||||||||||||||||
Long-term deferred tax liabilities, net | 77 | |||||||||||||||||||||
During the three months ended July 26, 2013, Medtronic recorded net income from acquisition-related items of $96 million related to the change in fair value of contingent consideration payments associated with Ardian, Inc. (Ardian) acquisition, which is based on annual revenue growth through fiscal year 2015. | Other long-term liabilities | 1 | ||||||||||||||||||||
Total liabilities assumed | 107 | |||||||||||||||||||||
Contingent Consideration | Net assets acquired | $ | 816 | |||||||||||||||||||
Certain of Medtronic’s business combinations and purchases of intellectual property involve the potential for the payment of future contingent consideration upon the achievement of certain product development milestones and/or various other favorable operating conditions. Payment of the additional consideration is generally contingent on the acquired company reaching certain performance milestones, including attaining specified revenue levels or achieving product development targets. For business combinations subsequent to April 24, 2009, a liability is recorded for the estimated fair value of the contingent consideration on the acquisition date. The fair value of the contingent consideration is remeasured at each reporting period and the change in fair value recognized as income or expense within acquisition-related items in the condensed consolidated statements of earnings. Medtronic measures the liability on a recurring basis using Level 3 inputs. See Note 7 for further information regarding fair value measurements. | Acquisition-Related Items | |||||||||||||||||||||
During fiscal year 2013, the Company recorded net income from acquisition-related items of $49 million, primarily including income of $62 million related to the change in fair value of contingent consideration associated with acquisitions subsequent to April 29, 2009. The change in fair value of contingent consideration primarily related to the reduction in fair value of contingent consideration associated with Ardian due to a slower commercial ramp in Europe. Additionally, the Company recorded transaction-related expenses of $13 million. These amounts are included within acquisition-related items in the consolidated statements of earnings. | ||||||||||||||||||||||
The fair value of contingent consideration is measured using projected payment dates, discount rates, probabilities of payment, and projected revenues (for revenue-based considerations). Projected contingent payment amounts are discounted back to the current period using a discounted cash flow model. Projected revenues are based on Medtronic’s most recent internal operational budgets and long-range strategic plans. Increases (decreases) in projected revenues, probabilities of payment, discount rates, or projected payment dates may result in a higher (lower) fair value measurement. Fluctuations in any of the inputs may result in a significantly lower (higher) fair value measurement. | Fiscal Year 2012 | |||||||||||||||||||||
Salient Surgical Technologies, Inc. | ||||||||||||||||||||||
The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs: | On August 31, 2011, the Company acquired Salient Surgical Technologies, Inc. (Salient). Salient develops and markets devices for haemostatic sealing of soft tissue and bone incorporating advanced energy technology. Salient’s devices are used in a variety of surgical procedures including orthopedic surgery, spine, open abdominal, and thoracic procedures. Total consideration for the transaction was approximately $497 million. Medtronic had previously invested in Salient and held an 8.9 percent ownership position in the company. Net of this ownership position, the transaction value was approximately $452 million. Based upon the acquisition valuation, the Company acquired $154 million of technology-based intangible assets that had an estimated useful life of 12 years, $44 million of IPR&D, and $348 million of goodwill. The IPR&D primarily relates to the launch of Salient’s concentric wire product. The acquired goodwill is not deductible for tax purposes. | |||||||||||||||||||||
The Company accounted for the acquisition of Salient as a business combination using the acquisition method of accounting. The assets acquired and liabilities assumed were recorded at their respective fair values as of the acquisition date. The fair values of the assets acquired and liabilities assumed are as follows: | ||||||||||||||||||||||
($ in millions) | Fair Value at | Valuation | Unobservable Input | Range | ||||||||||||||||||
July 25, 2014 | Technique | (in millions) | ||||||||||||||||||||
Discount rate | 13.5% - 24% | Current assets | $ | 20 | ||||||||||||||||||
Revenue-based payments | $ | 62 | Discounted cash flow | Probability of payment | 100% | Property, plant, and equipment | 11 | |||||||||||||||
Projected fiscal year of payment | 2015 - 2019 | IPR&D | 44 | |||||||||||||||||||
Discount rate | 5.50% | Other intangible assets | 154 | |||||||||||||||||||
Product development-based payments | $ | 25 | Discounted cash flow | Probability of payment | 75% | Goodwill | 348 | |||||||||||||||
Projected fiscal year of payment | 2018 | Other assets | 1 | |||||||||||||||||||
At July 25, 2014, the estimated maximum amount of undiscounted future contingent consideration that Medtronic is expected to make associated with all completed business combinations or purchases of intellectual property prior to April 24, 2009 was approximately $198 million. Medtronic estimates the milestones or other conditions associated with the contingent consideration will be reached in fiscal year 2015 and thereafter. | Total assets acquired | 578 | ||||||||||||||||||||
The fair value of contingent consideration associated with acquisitions subsequent to April 24, 2009, as of July 25, 2014 and April 25, 2014, was $87 million and $68 million, respectively. As of July 25, 2014, $68 million was reflected in other long-term liabilities and $19 million was reflected in other accrued expensesin the condensed consolidated balance sheets. As of April 25, 2014, $51 million was reflected in other long-term liabilities and $17 million was reflected in other accrued expenses in the condensed consolidated balance sheets. The portion of the contingent consideration paid related to the acquisition date fair value is reported as financing activities in the condensed consolidated statements of cash flows. Amounts paid in excess of the original acquisition date fair value are reported as operating activities in the condensed consolidated statements of cash flows. The following table provides a reconciliation of the beginning and ending balances of contingent consideration associated with acquisitions subsequent to April 24, 2009: | Current liabilities | 43 | ||||||||||||||||||||
Long-term deferred tax liabilities, net | 38 | |||||||||||||||||||||
Total liabilities assumed | 81 | |||||||||||||||||||||
Three months ended | ||||||||||||||||||||||
(in millions) | July 25, 2014 | July 26, 2013 | Net assets acquired | $ | 497 | |||||||||||||||||
Beginning Balance | $ | 68 | $ | 142 | ||||||||||||||||||
Purchase price contingent consideration | 23 | — | PEAK Surgical, Inc. | |||||||||||||||||||
Contingent consideration payments | (5 | ) | (1 | ) | On August 31, 2011, the Company acquired PEAK Surgical, Inc. (PEAK). PEAK develops and markets tissue dissection devices incorporating advanced energy technology. Total consideration for the transaction was approximately $113 million. Medtronic had previously invested in PEAK and held an 18.9 percent ownership position in the company. Net of this ownership position, the transaction value was approximately $96 million. Based upon the acquisition valuation, the Company acquired $74 million of technology-based intangible assets that had an estimated useful life of 12 years, and $56 million of goodwill. The acquired goodwill is not deductible for tax purposes. | |||||||||||||||||
Change in fair value of contingent consideration | 1 | (96 | ) | The Company accounted for the acquisition of PEAK as a business combination using the acquisition method of accounting. The assets acquired and liabilities assumed were recorded at their respective fair values as of the acquisition date. The fair values of the assets acquired and liabilities assumed are as follows: | ||||||||||||||||||
Ending Balance | $ | 87 | $ | 45 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Current assets | $ | 5 | ||||||||||||||||||||
Property, plant, and equipment | 5 | |||||||||||||||||||||
Intangible assets | 74 | |||||||||||||||||||||
Goodwill | 56 | |||||||||||||||||||||
Total assets acquired | 140 | |||||||||||||||||||||
Current liabilities | 10 | |||||||||||||||||||||
Long-term deferred tax liabilities, net | 17 | |||||||||||||||||||||
Total liabilities assumed | 27 | |||||||||||||||||||||
Net assets acquired | $ | 113 | ||||||||||||||||||||
Acquisition-Related Items | ||||||||||||||||||||||
During fiscal year 2012, the Company recorded net charges from acquisition-related items of $12 million, primarily including charges of $45 million related to the change in fair value of contingent consideration associated with acquisitions subsequent to April 29, 2009. Additionally, in connection with the acquisitions of Salient and PEAK, the Company recognized gains of $32 million and $6 million, respectively, on its previously-held investments. These amounts are included within acquisition-related items in the consolidated statements of earnings. | ||||||||||||||||||||||
Contingent Consideration | ||||||||||||||||||||||
Certain of the Company’s business combinations and purchases of intellectual property involve the potential for the payment of future contingent consideration upon the achievement of certain product development milestones and/or various other favorable operating conditions. Payment of the additional consideration is generally contingent on the acquired company reaching certain performance milestones, including attaining specified revenue levels or achieving product development targets. For business combinations subsequent to April 24, 2009, a liability is recorded for the estimated fair value of the contingent consideration on the acquisition date. The fair value of the contingent consideration is remeasured at each reporting period with the change in fair value recognized as income or expense within acquisition-related items in the consolidated statements of earnings. The Company measures the liability on a recurring basis using Level 3 inputs. See Note 6 for further information regarding fair value measurements. | ||||||||||||||||||||||
The fair value of contingent consideration is measured using projected payment dates, discount rates, probabilities of payment, and projected revenues (for revenue-based considerations). Projected contingent payment amounts are discounted back to the current period using a discounted cash flow model. Projected revenues are based on the Company’s most recent internal operational budgets and long-range strategic plans. Increases (decreases) in projected revenues, probabilities of payment, discount rates, or projected payment dates may result in higher (lower) fair value measurements. Fluctuations in any of the inputs may result in a significantly lower (higher) fair value measurement. | ||||||||||||||||||||||
The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs: | ||||||||||||||||||||||
($ in millions) | Fair Value at | Valuation | Unobservable Input | Range | ||||||||||||||||||
April 25, 2014 | Technique | |||||||||||||||||||||
Discount rate | 13.5% - 24% | |||||||||||||||||||||
Revenue-based payments | $ | 43 | Discounted cash flow | Probability of payment | 100% | |||||||||||||||||
Projected fiscal year of payment | 2015 - 2019 | |||||||||||||||||||||
Discount rate | 5.50% | |||||||||||||||||||||
Product development- | $ | 25 | Discounted cash flow | Probability of payment | 75% - 100% | |||||||||||||||||
based payments | Projected fiscal year of payment | 2015 - 2018 | ||||||||||||||||||||
At April 25, 2014, the estimated maximum potential amount of undiscounted future contingent consideration that the Company is expected to make associated with all completed business combinations or purchases of intellectual property prior to April 24, 2009 was approximately $199 million. The Company estimates the milestones or other conditions associated with the contingent consideration will be reached in fiscal year 2015 and thereafter. | ||||||||||||||||||||||
The fair value of contingent consideration associated with acquisitions subsequent to April 24, 2009, as of April 25, 2014 and April 26, 2013, was $68 million and $142 million, respectively. As of April 25, 2014, $51 million was reflected in other long-term liabilities and $17 million was reflected in other accrued expenses in the consolidated balance sheets. As of April 26, 2013, $120 million was reflected in other long-term liabilities and $22 million was reflected in other accrued expenses in the consolidated balance sheets. The portion of the contingent consideration related to the acquisition date fair value is reported as financing activities in the consolidated statements of cash flows. Amounts paid in excess of the original acquisition date fair value are reported as operating activities in the consolidated statements of cash flows. The following table provides a reconciliation of the beginning and ending balances of contingent consideration associated with acquisitions subsequent to April 24, 2009: | ||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||
Beginning Balance | $ | 142 | $ | 231 | ||||||||||||||||||
Purchase price contingent consideration | 65 | 3 | ||||||||||||||||||||
Contingent consideration payments | (1 | ) | (30 | ) | ||||||||||||||||||
Change in fair value of contingent consideration | (138 | ) | (62 | ) | ||||||||||||||||||
Ending Balance | $ | 68 | $ | 142 | ||||||||||||||||||
Special_Charges_and_Certain_Li
Special Charges and Certain Litigation Charges, Net | 3 Months Ended | 12 Months Ended |
Jul. 25, 2014 | Apr. 25, 2014 | |
Text Block [Abstract] | ' | ' |
Special Charges and Certain Litigation Charges, Net | ' | ' |
2. Special Charges and Certain Litigation Charges, Net | ||
Note 4 – Special Charges and Certain Litigation Charges, Net | Special Charges | |
During fiscal year 2014, consistent with the Company’s commitment to improving the health of people and communities throughout the world, the Company made a $40 million charitable contribution to the Medtronic Foundation, which is a related party non-profit organization. | ||
Special Charges | During fiscal years 2013 and 2012, there were no special charges. | |
Certain Litigation Charges, Net | ||
During the three months ended July 26, 2013, consistent with Medtronic’s commitment to improving the health of people and communities throughout the world, Medtronic made a $40 million charitable contribution to the Medtronic Foundation, which is a related party non-profit organization. | The Company classifies material litigation charges and gains recognized as certain litigation charges, net. | |
During fiscal year 2014, the Company recorded certain litigation charges, net of $770 million, which primarily includes the global patent settlement agreement with Edwards Lifesciences Corporation (Edwards) of $589 million, accounting charges for probable and reasonably estimable INFUSE product liability litigation of $140 million, and other litigation. Refer to Note 18 for additional information. | ||
Certain Litigation Charges, Net | During fiscal year 2013, the Company recorded certain litigation charges, net of $245 million related to probable and reasonably estimated damages resulting from patent litigation with Edwards. Refer to Note 18 for additional information. | |
During fiscal year 2012, the Company recorded certain litigation charges, net of $90 million related to the agreement to settle the federal securities class action initiated in December 2008 by the Minneapolis Firefighters’ Relief Association. During the fourth quarter of fiscal year 2012, Medtronic settled all of these class claims for $85 million and incurred $5 million in additional litigation fees. | ||
Medtronic classifies material litigation reserves and gains recognized as certain litigation charges, net. During the three months ended July 25, 2014 and July 26, 2013, there were no certain litigation charges, net. |
Restructuring_Charges_Net
Restructuring Charges, Net | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||
Restructuring Charges, Net | ' | ' | ||||||||||||||||||||||||||||||||
3. Restructuring Charges, Net | ||||||||||||||||||||||||||||||||||
Note 5 – Restructuring Charges, Net | Fiscal Year 2014 Initiative | |||||||||||||||||||||||||||||||||
In the fourth quarter of fiscal year 2014, the Company recorded a $116 million restructuring charge, which consisted of employee termination costs of $65 million, asset write-downs of $26 million, contract termination costs of $3 million, and other related costs of $22 million. Of the $26 million of asset write-downs, $10 million related to inventory write-offs of discontinued product lines and production-related asset impairments, and therefore, was recorded within cost of products sold in the consolidated statements of earnings. The fiscal year 2014 initiative primarily relates to the Company’s renal denervation business, certain manufacturing shut-downs, and a reduction of back-office support functions in Europe. | ||||||||||||||||||||||||||||||||||
Fiscal Year 2014 Initiative | As of the end of the fourth quarter of fiscal year 2014, the Company identified approximately 600 positions for elimination to be achieved primarily through involuntary separation. The fiscal year 2014 initiative is scheduled to be substantially complete by the end of the fourth quarter of fiscal year 2015. | |||||||||||||||||||||||||||||||||
The fiscal year 2014 initiative primarily related to Medtronic’s renal denervation business, certain manufacturing shut-downs, and a reduction of back-office support functions in Europe. In the fourth quarter of fiscal year 2014, Medtronic recorded a $116 million restructuring charge, which consisted of employee termination costs of $65 million, asset write-downs of $26 million, contract termination costs of $3 million, and other related costs of $22 million. Of the $26 million of asset write-downs, $10 million related to inventory write-offs of discontinued product lines and production-related asset impairments, and therefore, was recorded within cost of products sold in the condensed consolidated statements of earnings. In the first quarter of fiscal year 2015, Medtronic recorded a $38 million restructuring charge, which was the final charge related to the fiscal year 2014 initiative and consisted primarily of contract termination and other related costs of $28 million. The fiscal year 2014 initiative is scheduled to be substantially complete by the end of the fourth quarter of fiscal year 2015. | A summary of the activity related to the fiscal year 2014 initiative is presented below: | |||||||||||||||||||||||||||||||||
As a result of certain employees identified for elimination finding other positions within Medtronic and revisions to particular strategies, Medtronic recorded a $6 million reversal of excess restructuring reserves in the first quarter of fiscal year 2015. | ||||||||||||||||||||||||||||||||||
Fiscal Year 2014 Initiative | ||||||||||||||||||||||||||||||||||
(in millions) | Employee | Asset | Other | Total | ||||||||||||||||||||||||||||||
Termination | Write-downs | Costs | ||||||||||||||||||||||||||||||||
A summary of the activity related to the fiscal year 2014 initiative is presented below: | Costs | |||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
Restructuring charges | 65 | 26 | 25 | 116 | ||||||||||||||||||||||||||||||
Payments/write-downs | (1 | ) | (26 | ) | (14 | ) | (41 | ) | ||||||||||||||||||||||||||
(in millions) | Employee | Asset | Other | Total | ||||||||||||||||||||||||||||||
Termination | Write-downs | Costs | Balance as of April 25, 2014 | $ | 64 | $ | — | $ | 11 | $ | 75 | |||||||||||||||||||||||
Costs | ||||||||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 64 | $ | — | $ | 11 | $ | 75 | Fiscal Year 2013 Initiative | |||||||||||||||||||||||||
Restructuring charges | 1 | 9 | 28 | 38 | The fiscal year 2013 initiative was designed to scale back the Company’s infrastructure in slower growing areas of the business, while continuing to invest in geographies, businesses, and products where faster growth is anticipated. A number of factors have contributed to ongoing challenging market dynamics, including increased pricing pressure, various governmental austerity measures, and the U.S. medical device excise tax. In the fourth quarter of fiscal year 2013, the Company recorded a $192 million restructuring charge, which consisted of employee termination costs of $150 million, asset write-downs of $13 million, contract termination costs of $18 million, and other related costs of $11 million. Of the $13 million of asset write-downs, $10 million related to inventory write-offs of discontinued product lines and production-related asset impairments, and therefore, was recorded within cost of products sold in the consolidated statements of earnings. In the first quarter of fiscal year 2014, the Company recorded an $18 million restructuring charge, which was the final charge related to the fiscal year 2013 initiative and consisted primarily of contract termination costs of $14 million and other related costs of $4 million. | |||||||||||||||||||||||||||||
Payments/write-downs | (17 | ) | (9 | ) | (19 | ) | (45 | ) | As of the end of the fourth quarter of fiscal year 2013, the Company identified approximately 2,000 positions for elimination to be achieved through involuntary and voluntary separation. | |||||||||||||||||||||||||
Reversal of excess accrual | (6 | ) | — | — | (6 | ) | In fiscal year 2014, the Company recorded a reversal of excess restructuring reserves related to the fiscal year 2013 initiative of $46 million. The reversal was primarily a result of revisions to particular strategies and certain employees identified for elimination finding other positions within the Company. | |||||||||||||||||||||||||||
As a result of certain legal requirements outside the U.S., the fiscal year 2013 initiative is scheduled to be substantially complete by the end of the third quarter of fiscal year 2016. | ||||||||||||||||||||||||||||||||||
Balance as of July 25, 2014 | $ | 42 | $ | — | $ | 20 | $ | 62 | ||||||||||||||||||||||||||
A summary of the activity related to the fiscal year 2013 initiative is presented below: | ||||||||||||||||||||||||||||||||||
Fiscal Year 2013 Initiative | ||||||||||||||||||||||||||||||||||
Fiscal Year 2013 Initiative | ||||||||||||||||||||||||||||||||||
The fiscal year 2013 initiative was designed to scale back Medtronic’s infrastructure in slower growing areas of the business, while continuing to invest in geographies, businesses, and products where faster growth is anticipated. A number of factors have contributed to ongoing challenging market dynamics, including increased pricing pressure, various governmental austerity measures, and the U.S. medical device excise tax. In the fourth quarter of fiscal year 2013, Medtronic recorded a $192 million restructuring charge, which consisted of employee termination costs of $150 million, asset write-downs of $13 million, contract termination costs of $18 million, and other related costs of $11 million. Of the $13 million of asset write-downs, $10 million related to inventory write-offs of discontinued product lines and production-related asset impairments, and therefore, was recorded within cost of products sold in the condensed consolidated statements of earnings. In the first quarter of fiscal year 2014, Medtronic recorded an $18 million restructuring charge, which was the final charge related to the fiscal year 2013 initiative and consisted primarily of contract termination costs of $14 million and other related costs of $4 million. | (in millions) | Employee | Asset | Other | Total | |||||||||||||||||||||||||||||
Termination | Write-downs | Costs | ||||||||||||||||||||||||||||||||
In the first quarter of fiscal year 2015, Medtronic recorded a $2 million reversal of excess restructuring reserves as a result of certain employees identified for elimination finding other positions within Medtronic and revisions to particular strategies. | Costs | |||||||||||||||||||||||||||||||||
Balance as of April 27, 2012 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
As a result of certain legal requirements outside the U.S., the fiscal year 2013 initiative is scheduled to be substantially complete by the end of the third quarter of fiscal year 2016. | Restructuring charges | 150 | 13 | 29 | 192 | |||||||||||||||||||||||||||||
Payments/write-downs | (3 | ) | (13 | ) | (6 | ) | (22 | ) | ||||||||||||||||||||||||||
A summary of the activity related to the fiscal year 2013 initiative is presented below: | ||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 147 | $ | — | $ | 23 | $ | 170 | ||||||||||||||||||||||||||
Restructuring charges | — | — | 18 | 18 | ||||||||||||||||||||||||||||||
Payments | (79 | ) | — | (39 | ) | (118 | ) | |||||||||||||||||||||||||||
(in millions) | Employee | Other | Total | Reversal of excess accrual | (45 | ) | — | (1 | ) | (46 | ) | |||||||||||||||||||||||
Termination | Costs | |||||||||||||||||||||||||||||||||
Costs | Balance as of April 25, 2014 | $ | 23 | $ | — | $ | 1 | $ | 24 | |||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 23 | $ | 1 | $ | 24 | ||||||||||||||||||||||||||||
Payments | (5 | ) | (1 | ) | (6 | ) | Fiscal Year 2012 Initiative | |||||||||||||||||||||||||||
Reversal of excess accrual | (2 | ) | — | (2 | ) | In the fourth quarter of fiscal year 2012, the Company recorded a $118 million restructuring charge, which consisted of employee termination costs of $66 million, asset write-downs of $9 million, contract termination costs of $30 million, and other related costs of $13 million. The fiscal year 2012 initiative was designed to reduce general, administrative, and indirect distribution costs in certain organizations within the Company while prioritizing investment in research and development, and sales and marketing in those organizations within the Company where faster growth is anticipated, such as emerging markets and new technologies. | ||||||||||||||||||||||||||||
As of the end of the fourth quarter of fiscal year 2012, the Company identified approximately 1,000 positions for elimination to be achieved through involuntary and voluntary separation. As of April 26, 2013, the fiscal year 2012 initiative was substantially complete. | ||||||||||||||||||||||||||||||||||
Balance as of July 25, 2014 | $ | 16 | $ | — | $ | 16 | In the fourth quarter of fiscal year 2013, the Company recorded a $10 million reversal of excess restructuring reserves related to the fiscal year 2012 initiative. This reversal was primarily a result of revisions to particular strategies and certain employees identified for elimination finding other positions within the Company. | |||||||||||||||||||||||||||
A summary of the activity related to the fiscal year 2012 initiative is presented below: | ||||||||||||||||||||||||||||||||||
Fiscal Year 2012 Initiative | ||||||||||||||||||||||||||||||||||
(in millions) | Employee | Asset | Other | Total | ||||||||||||||||||||||||||||||
Termination | Write-downs | Costs | ||||||||||||||||||||||||||||||||
Costs | ||||||||||||||||||||||||||||||||||
Balance as of April 29, 2011 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
Restructuring charges | 66 | 9 | 43 | 118 | ||||||||||||||||||||||||||||||
Payments/write-downs | (2 | ) | (9 | ) | (16 | ) | (27 | ) | ||||||||||||||||||||||||||
Balance as of April 27, 2012 | $ | 64 | $ | — | $ | 27 | $ | 91 | ||||||||||||||||||||||||||
Payments | (54 | ) | — | (23 | ) | (77 | ) | |||||||||||||||||||||||||||
Reversal of excess accrual | (10 | ) | — | — | (10 | ) | ||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | — | $ | — | $ | 4 | $ | 4 | ||||||||||||||||||||||||||
Payments | — | — | (4 | ) | (4 | ) | ||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
Investments
Investments | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||||||||||
Text Block [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||
Investments | ' | ' | ||||||||||||||||||||||||||||||||||||||||
5. Investments | ||||||||||||||||||||||||||||||||||||||||||
Note 6 – Investments | The Company holds investments consisting primarily of marketable debt and equity securities. | |||||||||||||||||||||||||||||||||||||||||
Information regarding the Company’s investments at April 25, 2014 is as follows: | ||||||||||||||||||||||||||||||||||||||||||
Medtronic holds investments consisting primarily of marketable debt and equity securities. | ||||||||||||||||||||||||||||||||||||||||||
Information regarding Medtronic’s investments at July 25, 2014 is as follows: | (in millions) | Cost | Unrealized | Unrealized | Fair Value | |||||||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 5,504 | $ | 55 | $ | (17 | ) | $ | 5,542 | |||||||||||||||||||||||||||||||||
(in millions) | Cost | Unrealized | Unrealized | Fair Value | Auction rate securities | 109 | — | (12 | ) | 97 | ||||||||||||||||||||||||||||||||
Gains | Losses | Mortgage-backed securities | 1,337 | 7 | (8 | ) | 1,336 | |||||||||||||||||||||||||||||||||||
Available-for-sale securities: | U.S. government and agency securities | 3,138 | 7 | (29 | ) | 3,116 | ||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 5,429 | $ | 65 | $ | (10 | ) | $ | 5,484 | Foreign government and agency securities | 67 | — | — | 67 | ||||||||||||||||||||||||||||
Auction rate securities | 109 | — | (10 | ) | 99 | Certificates of deposit | 54 | — | — | 54 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 1,252 | 10 | (8 | ) | 1,254 | Other asset-backed securities | 540 | 2 | — | 542 | ||||||||||||||||||||||||||||||||
U.S. government and agency securities | 2,748 | 7 | (22 | ) | 2,733 | Debt funds | 2,143 | 9 | (29 | ) | 2,123 | |||||||||||||||||||||||||||||||
Foreign government and agency securities | 78 | — | — | 78 | Marketable equity securities | 47 | 15 | (13 | ) | 49 | ||||||||||||||||||||||||||||||||
Certificates of deposit | 71 | — | — | 71 | Trading securities: | |||||||||||||||||||||||||||||||||||||
Other asset-backed securities | 497 | 1 | — | 498 | Exchange-traded funds | 54 | 13 | — | 67 | |||||||||||||||||||||||||||||||||
Debt funds | 2,446 | 48 | (8 | ) | 2,486 | Cost method, equity method, and other investments | 666 | — | — | NA | ||||||||||||||||||||||||||||||||
Marketable equity securities | 52 | 14 | (17 | ) | 49 | |||||||||||||||||||||||||||||||||||||
Trading securities: | Total investments | $ | 13,659 | $ | 108 | $ | (108 | ) | $ | 12,993 | ||||||||||||||||||||||||||||||||
Exchange-traded funds | 54 | 15 | — | 69 | ||||||||||||||||||||||||||||||||||||||
Cost method, equity method, and other investments | 618 | — | — | NA | ||||||||||||||||||||||||||||||||||||||
Information regarding the Company’s investments at April 26, 2013 is as follows: | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 13,354 | $ | 160 | $ | (75 | ) | $ | 12,821 | |||||||||||||||||||||||||||||||||
(in millions) | Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||||||||||||||
Information regarding Medtronic’s investments at April 25, 2014 is as follows: | Gains | Losses | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 4,587 | $ | 78 | $ | (4 | ) | $ | 4,661 | |||||||||||||||||||||||||||||||||
Auction rate securities | 118 | — | (15 | ) | 103 | |||||||||||||||||||||||||||||||||||||
(in millions) | Cost | Unrealized | Unrealized | Fair Value | Mortgage-backed securities | 1,050 | 8 | (5 | ) | 1,053 | ||||||||||||||||||||||||||||||||
Gains | Losses | U.S. government and agency securities | 3,882 | 17 | (1 | ) | 3,898 | |||||||||||||||||||||||||||||||||||
Available-for-sale securities: | Foreign government and agency securities | 38 | — | — | 38 | |||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 5,504 | $ | 55 | $ | (17 | ) | $ | 5,542 | Certificates of deposit | 6 | — | — | 6 | ||||||||||||||||||||||||||||
Auction rate securities | 109 | — | (12 | ) | 97 | Other asset-backed securities | 539 | 2 | — | 541 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 1,337 | 7 | (8 | ) | 1,336 | Marketable equity securities | 82 | 75 | (2 | ) | 155 | |||||||||||||||||||||||||||||||
U.S. government and agency securities | 3,138 | 7 | (29 | ) | 3,116 | Trading securities: | ||||||||||||||||||||||||||||||||||||
Foreign government and agency securities | 67 | — | — | 67 | Exchange-traded funds | 45 | 5 | — | 50 | |||||||||||||||||||||||||||||||||
Certificates of deposit | 54 | — | — | 54 | Cost method, equity method, and other investments | 549 | — | — | NA | |||||||||||||||||||||||||||||||||
Other asset-backed securities | 540 | 2 | — | 542 | ||||||||||||||||||||||||||||||||||||||
Debt funds | 2,143 | 9 | (29 | ) | 2,123 | Total investments | $ | 10,896 | $ | 185 | $ | (27 | ) | $ | 10,505 | |||||||||||||||||||||||||||
Marketable equity securities | 47 | 15 | (13 | ) | 49 | |||||||||||||||||||||||||||||||||||||
Trading securities: | Information regarding the Company’s consolidated balance sheets presentation at April 25, 2014 and April 26, 2013 is as follows: | |||||||||||||||||||||||||||||||||||||||||
Exchange-traded funds | 54 | 13 | — | 67 | ||||||||||||||||||||||||||||||||||||||
Cost method, equity method, and other investments | 666 | — | — | NA | ||||||||||||||||||||||||||||||||||||||
April 25, 2014 | April 26, 2013 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 13,659 | $ | 108 | $ | (108 | ) | $ | 12,993 | (in millions) | Investments | Other Assets | Investments | Other Assets | ||||||||||||||||||||||||||||
Available-for-sale securities | $ | 12,771 | $ | 155 | $ | 10,161 | $ | 294 | ||||||||||||||||||||||||||||||||||
Trading securities | 67 | — | 50 | — | ||||||||||||||||||||||||||||||||||||||
Cost method, equity method, and other investments | — | 666 | — | 549 | ||||||||||||||||||||||||||||||||||||||
Information regarding Medtronic’s condensed consolidated balance sheet presentation at July 25, 2014 and April 25, 2014 is as follows: | Total | $ | 12,838 | $ | 821 | $ | 10,211 | $ | 843 | |||||||||||||||||||||||||||||||||
The following tables show the gross unrealized losses and fair values of the Company’s available-for-sale securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category as of April 25, 2014 and April 26, 2013: | ||||||||||||||||||||||||||||||||||||||||||
July 25, 2014 | April 25, 2014 | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Investments | Other Assets | Investments | Other Assets | ||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | $ | 12,557 | $ | 195 | $ | 12,771 | $ | 155 | April 25, 2014 | |||||||||||||||||||||||||||||||||
Trading securities | 69 | — | 67 | — | Less than 12 Months | More than 12 Months | ||||||||||||||||||||||||||||||||||||
Cost method, equity method, and other investments | — | 618 | — | 666 | (in millions) | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||||||||||||||||
Losses | Losses | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 12,626 | $ | 813 | $ | 12,838 | $ | 821 | Corporate debt securities | $ | 1,601 | $ | (14 | ) | $ | 50 | $ | (3 | ) | |||||||||||||||||||||||
Auction rate securities | — | — | 97 | (12 | ) | |||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 682 | (7 | ) | 28 | (1 | ) | ||||||||||||||||||||||||||||||||||||
The following tables show the gross unrealized losses and fair values of Medtronic’s available-for-sale securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category as of July 25, 2014 and April 25, 2014: | U.S. government and agency securities | 1,500 | (27 | ) | 46 | (2 | ) | |||||||||||||||||||||||||||||||||||
Debt funds | 1,224 | (29 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Marketable equity securities | 25 | (13 | ) | — | — | |||||||||||||||||||||||||||||||||||||
July 25, 2014 | Total | $ | 5,032 | $ | (90 | ) | $ | 221 | $ | (18 | ) | |||||||||||||||||||||||||||||||
Less than 12 months | More than 12 months | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||||||||||||||||
Losses | Losses | 26-Apr-13 | ||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 1,200 | $ | (5 | ) | $ | 273 | $ | (5 | ) | Less than 12 Months | More than 12 Months | ||||||||||||||||||||||||||||||
Auction rate securities | — | — | 99 | (10 | ) | (in millions) | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 353 | (3 | ) | 333 | (5 | ) | Losses | Losses | ||||||||||||||||||||||||||||||||||
U.S. government and agency securities | 754 | (1 | ) | 784 | (21 | ) | Corporate debt securities | $ | 544 | $ | (1 | ) | $ | 13 | $ | (3 | ) | |||||||||||||||||||||||||
Debt funds | 454 | (1 | ) | 141 | (7 | ) | Auction rate securities | — | — | 103 | (15 | ) | ||||||||||||||||||||||||||||||
Marketable equity securities | 21 | (17 | ) | — | — | Mortgage-backed securities | 195 | (1 | ) | 44 | (4 | ) | ||||||||||||||||||||||||||||||
U.S. government and agency securities | 291 | (1 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 2,782 | $ | (27 | ) | $ | 1,630 | $ | (48 | ) | Marketable equity securities | 14 | (2 | ) | — | — | ||||||||||||||||||||||||||
Total | $ | 1,044 | $ | (5 | ) | $ | 160 | $ | (22 | ) | ||||||||||||||||||||||||||||||||
Activity related to the Company’s investment portfolio is as follows: | ||||||||||||||||||||||||||||||||||||||||||
April 25, 2014 | ||||||||||||||||||||||||||||||||||||||||||
Less than 12 months | More than 12 months | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Fair Value | Unrealized | Fair Value | Unrealized | Fiscal Year | |||||||||||||||||||||||||||||||||||||
Losses | Losses | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 1,601 | $ | (14 | ) | $ | 50 | $ | (3 | ) | (in millions) | Debt (a) | Equity (b) | Debt (a) | Equity (b) | Debt (a) | Equity (b) (c) | |||||||||||||||||||||||||
Auction rate securities | — | — | 97 | (12 | ) | Proceeds from sales | $ | 7,991 | $ | 120 | $ | 10,350 | $ | 161 | $ | 7,675 | $ | 113 | ||||||||||||||||||||||||
Mortgage-backed securities | 682 | (7 | ) | 28 | (1 | ) | ||||||||||||||||||||||||||||||||||||
U.S. government and agency securities | 1,500 | (27 | ) | 46 | (2 | ) | Gross realized gains | $ | 15 | $ | 69 | $ | 59 | $ | 94 | $ | 52 | $ | 93 | |||||||||||||||||||||||
Debt funds | 1,224 | (29 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Marketable equity securities | 25 | (13 | ) | — | — | Gross realized losses | $ | (12 | ) | $ | — | $ | (17 | ) | $ | — | $ | (16 | ) | $ | — | |||||||||||||||||||||
Total | $ | 5,032 | $ | (90 | ) | $ | 221 | $ | (18 | ) | Impairment losses recognized | $ | (1 | ) | $ | (9 | ) | $ | — | $ | (21 | ) | $ | (2 | ) | $ | (10 | ) | ||||||||||||||
(a) | Includes available-for-sale debt securities. | |||||||||||||||||||||||||||||||||||||||||
Activity related to Medtronic’s investment portfolio is as follows: | (b) | Includes marketable equity securities, cost method, equity method, exchange-traded funds, and other investments. | ||||||||||||||||||||||||||||||||||||||||
(c) | As a result of the Salient and PEAK acquisitions that occurred during fiscal year 2012, the Company recognized a non-cash gain of $38 million on its previously-held minority investments. | |||||||||||||||||||||||||||||||||||||||||
Three months ended | Credit losses represent the difference between the present value of cash flows expected to be collected on certain mortgage-backed securities and auction rate securities and the amortized cost of these securities. Based on the Company’s assessment of the credit quality of the underlying collateral and credit support available to each of the remaining securities in which invested, the Company believes it has recorded all necessary other-than-temporary impairments as the Company does not have the intent to sell, nor is it more likely than not that the Company will be required to sell, before recovery of the amortized cost. | |||||||||||||||||||||||||||||||||||||||||
July 25, 2014 | July 26, 2013 | As of April 25, 2014, April 26, 2013, and April 27, 2012, the credit loss portion of other-than-temporary impairments on debt securities was $4 million, $9 million, and $20 million, respectively. The total reductions for available-for-sale debt securities sold for the fiscal years ended April 25, 2014 and April 26, 2013 were $5 million and $11 million, respectively. The total other-than-temporary impairment losses on available-for-sale debt securities for the fiscal years ended April 25, 2014 and April 26, 2013 were not significant. The total other-than-temporary impairment losses on available-for-sale debt securities for the fiscal year ended April 27, 2012 was $6 million, of which $4 million was recognized in other comprehensive income and $2 million was recognized in earnings. | ||||||||||||||||||||||||||||||||||||||||
(in millions) | Debt (a) | Equity (b) | Debt (a) | Equity (b) | The April 25, 2014 balance of available-for-sale debt securities, excluding debt funds which have no single maturity date, by contractual maturity is shown in the following table. Within the table, maturities of mortgage-backed securities have been allocated based upon timing of estimated cash flows, assuming no change in the current interest rate environment. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. | |||||||||||||||||||||||||||||||||||||
Proceeds from sales | $ | 1,830 | $ | 23 | $ | 2,163 | $ | 32 | ||||||||||||||||||||||||||||||||||
Gross realized gains | 11 | 19 | 6 | 18 | (in millions) | April 25, 2014 | ||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,412 | ||||||||||||||||||||||||||||||||||||||||
Gross realized losses | (3 | ) | — | (5 | ) | — | Due after one year through five years | 6,368 | ||||||||||||||||||||||||||||||||||
Due after five years through 10 years | 2,859 | |||||||||||||||||||||||||||||||||||||||||
Impairment losses recognized | — | (1 | ) | — | — | Due after 10 years | 115 | |||||||||||||||||||||||||||||||||||
Total debt securities | $ | 10,754 | ||||||||||||||||||||||||||||||||||||||||
(a) | Includes available-for-sale debt securities. | As of April 25, 2014 and April 26, 2013, the aggregate carrying amount of equity and other securities without a quoted market price and accounted for using the cost or equity method was $666 million and $549 million, respectively. The total carrying value of these investments is reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company’s investment may not be recoverable. The value of cost or equity method investments is not adjusted if there are no identified events or changes in circumstances that may have a material adverse effect on the fair value of the investment. | ||||||||||||||||||||||||||||||||||||||||
Gains and losses realized on trading securities and available-for-sale debt securities are recorded in interest expense, net in the consolidated statements of earnings. Gains and losses realized on marketable equity securities, cost method, equity method, and other investments are recorded in other expense, net in the consolidated statements of earnings. In addition, unrealized gains and losses on available-for-sale debt securities are recorded in other comprehensive income (loss) in the consolidated statements of comprehensive income and unrealized gains and losses on trading securities are recorded in interest expense, net in the consolidated statements of earnings. Gains and losses from the sale of investments are calculated based on the specific identification method. | ||||||||||||||||||||||||||||||||||||||||||
(b) | Includes marketable equity securities, cost method, equity method, exchange-traded funds, and other investments. | |||||||||||||||||||||||||||||||||||||||||
Credit losses represent the difference between the present value of cash flows expected to be collected on certain mortgage-backed securities and auction rate securities and the amortized cost of these securities. Based on Medtronic’s assessment of the credit quality of the underlying collateral and credit support available to each of the remaining securities in which invested, Medtronic believes it has recorded all necessary other-than-temporary impairments as Medtronic does not have the intent to sell, nor is it more likely than not that Medtronic will be required to sell, before recovery of the amortized cost. | ||||||||||||||||||||||||||||||||||||||||||
As of July 25, 2014 and April 25, 2014, the credit loss portion of other-than-temporary impairments on debt securities was $4 million. The total reductions for available-for-sale debt securities sold during the three months ended July 25, 2014 and July 26, 2013 were not significant. The total other-than-temporary impairment losses on available-for-sale debt securities for the three months ended July 25, 2014 and July 26, 2013 were not significant. | ||||||||||||||||||||||||||||||||||||||||||
The July 25, 2014 balance of available-for-sale debt securities, excluding debt funds which have no single maturity date, by contractual maturity is shown in the following table. Within the table, maturities of mortgage-backed securities have been allocated based upon timing of estimated cash flows, assuming no change in the current interest rate environment. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | July 25, 2014 | |||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,426 | ||||||||||||||||||||||||||||||||||||||||
Due after one year through five years | 5,961 | |||||||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 2,689 | |||||||||||||||||||||||||||||||||||||||||
Due after ten years | 141 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 10,217 | ||||||||||||||||||||||||||||||||||||||||
As of July 25, 2014 and April 25, 2014, the aggregate carrying amount of equity and other securities without a quoted market price and accounted for using the cost or equity method was $618 million and $666 million, respectively. The total carrying value of these investments is reviewed quarterly for changes in circumstance or the occurrence of events that suggest Medtronic’s investment may not be recoverable. The value of cost or equity method investments is not adjusted if there are no identified events or changes in circumstances that may have a material adverse effect on the fair value of the investment. | ||||||||||||||||||||||||||||||||||||||||||
Gains and losses realized on trading securities and available-for-sale debt securities are recorded in interest expense, net in the condensed consolidated statements of earnings. Gains and losses realized on marketable equity securities, cost method, equity method, and other investments are recorded in other expense, net in the condensed consolidated statements of earnings. In addition, unrealized gains and losses on available-for-sale debt securities are recorded in other comprehensive income (loss) in the condensed consolidated statements of comprehensive income and unrealized gains and losses on trading securities are recorded ininterest expense, net in the condensed consolidated statements of earnings. Gains and losses from the sale of investments are calculated based on the specific identification method. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | ' | ||||||||||||||||||||||||||||||||||||
6. Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||
Note 7 – Fair Value Measurements | The Company follows the authoritative guidance on fair value measurements and disclosures with respect to assets and liabilities that are measured at fair value on both a recurring and nonrecurring basis. Under this guidance, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability, based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and financial liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels defined as follows: | |||||||||||||||||||||||||||||||||||||
Medtronic follows the authoritative guidance on fair value measurements and disclosures with respect to assets and liabilities that are measured at fair value on both a recurring and nonrecurring basis. Under this guidance, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability, based on market data obtained from sources independent of Medtronic. Unobservable inputs are inputs that reflect Medtronic’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and financial liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). Descriptions of the three levels of the fair value hierarchy are discussed in Note 6 to the consolidated audited financial statements included in this joint proxy statement/prospectus. | • | Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||||||||||||
See the section below titled Valuation Techniques for further discussion of how Medtronic determines fair value for investments. | • | Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. | ||||||||||||||||||||||||||||||||||||
Assets and Liabilities That Are Measured at Fair Value on a Recurring Basis | • | Level 3 - Inputs are unobservable for the asset or liability. | ||||||||||||||||||||||||||||||||||||
See the section below titled Valuation Techniques for further discussion of how the Company determines fair value for investments. | ||||||||||||||||||||||||||||||||||||||
The authoritative guidance is principally applied to financial assets and liabilities such as marketable equity securities and debt and equity securities that are classified and accounted for as trading, available-for-sale, and derivative instruments and contingent consideration associated with acquisitions subsequent to April 24, 2009. Derivatives include cash flow hedges, freestanding derivative forward contracts, and fair value hedges. These items are marked-to-market at each reporting period. | Assets and Liabilities That Are Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||||||||
The authoritative guidance is principally applied to financial assets and liabilities such as marketable equity securities and debt and equity securities that are classified and accounted for as trading, available-for-sale, and derivative instruments and contingent consideration associated with acquisitions subsequent to April 24, 2009. Derivatives include cash flow hedges, freestanding derivative forward contracts, and fair value hedges. These items are marked-to-market at each reporting period. | ||||||||||||||||||||||||||||||||||||||
The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | (in millions) | April 25, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | Assets: | ||||||||||||||||||||||||||||||||||||
(in millions) | July 25, 2014 | Level 1 | Level 2 | Level 3 | Corporate debt securities | $ | 5,542 | $ | — | $ | 5,533 | $ | 9 | |||||||||||||||||||||||||
Assets: | Auction rate securities | 97 | — | — | 97 | |||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 5,484 | $ | — | $ | 5,475 | $ | 9 | Mortgage-backed securities | 1,336 | — | 1,336 | — | |||||||||||||||||||||||||
Auction rate securities | 99 | — | — | 99 | U.S. government and agency securities | 3,116 | 1,251 | 1,865 | — | |||||||||||||||||||||||||||||
Mortgage-backed securities | 1,254 | — | 1,254 | — | Foreign government and agency securities | 67 | — | 67 | — | |||||||||||||||||||||||||||||
U.S. government and agency securities | 2,733 | 1,135 | 1,598 | — | Certificates of deposit | 54 | — | 54 | — | |||||||||||||||||||||||||||||
Foreign government and agency securities | 78 | — | 78 | — | Other asset-backed securities | 542 | — | 542 | — | |||||||||||||||||||||||||||||
Certificates of deposit | 71 | — | 71 | — | Debt funds | 2,123 | — | 2,123 | — | |||||||||||||||||||||||||||||
Other asset-backed securities | 498 | — | 498 | — | Marketable equity securities | 49 | 49 | — | — | |||||||||||||||||||||||||||||
Debt funds | 2,486 | — | 2,486 | — | Exchange-traded funds | 67 | 67 | — | — | |||||||||||||||||||||||||||||
Marketable equity securities | 49 | 49 | — | — | Derivative assets | 175 | 89 | 86 | — | |||||||||||||||||||||||||||||
Exchange-traded funds | 69 | 69 | — | — | ||||||||||||||||||||||||||||||||||
Derivative assets | 176 | 96 | 80 | — | Total assets | $ | 13,168 | $ | 1,456 | $ | 11,606 | $ | 106 | |||||||||||||||||||||||||
Total assets | $ | 12,997 | $ | 1,349 | $ | 11,540 | $ | 108 | Liabilities: | |||||||||||||||||||||||||||||
Derivative liabilities | $ | 127 | $ | 116 | $ | 11 | $ | — | ||||||||||||||||||||||||||||||
Liabilities: | Contingent consideration associated with acquisitions subsequent to April 24, 2009 | 68 | — | — | 68 | |||||||||||||||||||||||||||||||||
Derivative liabilities | $ | 68 | $ | 68 | $ | — | $ | — | ||||||||||||||||||||||||||||||
Contingent consideration associated with acquisitions subsequent to April 24, 2009 | 87 | — | — | 87 | Total liabilities | $ | 195 | $ | 116 | $ | 11 | $ | 68 | |||||||||||||||||||||||||
Total liabilities | $ | 155 | $ | 68 | $ | — | $ | 87 | Fair Value | Fair Value Measurements | ||||||||||||||||||||||||||||
as of | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||
(in millions) | April 26, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 4,661 | $ | — | $ | 4,651 | $ | 10 | ||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | Auction rate securities | 103 | — | — | 103 | ||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | Mortgage-backed securities | 1,053 | — | 1,039 | 14 | ||||||||||||||||||||||||||||||||
(in millions) | April 25, 2014 | Level 1 | Level 2 | Level 3 | U.S. government and agency securities | 3,898 | 1,833 | 2,065 | — | |||||||||||||||||||||||||||||
Assets: | Foreign government and agency securities | 38 | — | 38 | — | |||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 5,542 | $ | — | $ | 5,533 | $ | 9 | Certificates of deposit | 6 | — | 6 | — | |||||||||||||||||||||||||
Auction rate securities | 97 | — | — | 97 | Other asset-backed securities | 541 | — | 541 | — | |||||||||||||||||||||||||||||
Mortgage-backed securities | 1,336 | — | 1,336 | — | Marketable equity securities | 155 | 155 | — | — | |||||||||||||||||||||||||||||
U.S. government and agency securities | 3,116 | 1,251 | 1,865 | — | Exchange-traded funds | 50 | 50 | — | — | |||||||||||||||||||||||||||||
Foreign government and agency securities | 67 | — | 67 | — | Derivative assets | 394 | 213 | 181 | — | |||||||||||||||||||||||||||||
Certificates of deposit | 54 | — | 54 | — | ||||||||||||||||||||||||||||||||||
Other asset-backed securities | 542 | — | 542 | — | Total assets | $ | 10,899 | $ | 2,251 | $ | 8,521 | $ | 127 | |||||||||||||||||||||||||
Debt funds | 2,123 | — | 2,123 | — | ||||||||||||||||||||||||||||||||||
Marketable equity securities | 49 | 49 | — | — | ||||||||||||||||||||||||||||||||||
Exchange-traded funds | 67 | 67 | — | — | Liabilities: | |||||||||||||||||||||||||||||||||
Derivative assets | 175 | 89 | 86 | — | Derivative liabilities | $ | 58 | $ | 40 | $ | 18 | $ | — | |||||||||||||||||||||||||
Contingent consideration associated with acquisitions subsequent to April 24, 2009 | 142 | — | — | 142 | ||||||||||||||||||||||||||||||||||
Total assets | $ | 13,168 | $ | 1,456 | $ | 11,606 | $ | 106 | ||||||||||||||||||||||||||||||
Total liabilities | $ | 200 | $ | 40 | $ | 18 | $ | 142 | ||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||
Derivative liabilities | $ | 127 | $ | 116 | $ | 11 | $ | — | Valuation Techniques | |||||||||||||||||||||||||||||
Contingent consideration associated with acquisitions subsequent to April 24, 2009 | 68 | — | — | 68 | Financial assets that are classified as Level 1 securities include highly liquid government bonds within U.S. government and agency securities, marketable equity securities, and exchange-traded funds for which quoted market prices are available. In addition, the Company has determined that foreign currency forward contracts will be included in Level 1 as these are valued using quoted market prices in active markets which have identical assets or liabilities. | |||||||||||||||||||||||||||||||||
The valuation for most fixed maturity securities are classified as Level 2. Financial assets that are classified as Level 2 include corporate debt securities, U.S. government and agency securities, foreign government and agency securities, certificates of deposit, other asset-backed securities, debt funds, and certain mortgage-backed securities whose value is determined using inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data such as pricing for similar securities, recently executed transactions, cash flow models with yield curves, and benchmark securities. In addition, interest rate swaps are included in Level 2 as the Company uses inputs other than quoted prices that are observable for the asset. The Level 2 derivative instruments are primarily valued using standard calculations and models that use readily observable market data as their basis. | ||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 195 | $ | 116 | $ | 11 | $ | 68 | Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies, or similar techniques, and at least one significant model assumption or input is unobservable. Level 3 financial assets also include certain investment securities for which there is limited market activity such that the determination of fair value requires significant judgment or estimation. Level 3 investment securities include certain corporate debt securities, auction rate securities, and certain mortgage-backed securities. With the exception of auction rate securities, these securities were valued using third-party pricing sources that incorporate transaction details such as contractual terms, maturity, timing, and amount of expected future cash flows, as well as assumptions about liquidity and credit valuation adjustments by market participants. The fair value of auction rate securities is estimated by the Company using a discounted cash flow model, which incorporates significant unobservable inputs. The significant unobservable inputs used in the fair value measurement of the Company’s auction rate securities are years to principal recovery and the illiquidity premium that is incorporated into the discount rate. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value of the securities. Additionally, the Company uses Level 3 inputs in the measurement of contingent consideration and related liabilities for all acquisitions subsequent to April 24, 2009. See Note 4 for further information regarding contingent consideration. | |||||||||||||||||||||||||||||
The following table represents the range of the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 as of April 25, 2014: | ||||||||||||||||||||||||||||||||||||||
Valuation Techniques | ||||||||||||||||||||||||||||||||||||||
Valuation | Unobservable Input | Range | ||||||||||||||||||||||||||||||||||||
Financial assets that are classified as Level 1 securities include highly liquid government bonds within U.S. government and agency securities, marketable equity securities, and exchange-traded funds for which quoted market prices are available. In addition, Medtronic has determined that foreign currency forward contracts will be included in Level 1 as these are valued using quoted market prices in active markets which have identical assets or liabilities. The valuation for most fixed maturity securities are classified as Level 2. Financial assets that are classified as Level 2 include corporate debt securities, U.S. government and agency securities, foreign government and agency securities, certificates of deposit, other asset-backed securities, debt funds, and certain mortgage-backed securities whose value is determined using inputs that are observable in the market or can be derived principally from or corroborated by, observable market data such as pricing for similar securities, recently executed transactions, cash flow models with yield curves, and benchmark securities. In addition, interest rate swaps are included in Level 2 as Medtronic uses inputs other than quoted prices that are observable for the asset. The Level 2 derivative instruments are primarily valued using standard calculations and models that use readily observable market data as their basis. | Technique | (Weighted Average) | ||||||||||||||||||||||||||||||||||||
Auction rate securities | Discounted cash flow | Years to principal recovery | 2 yrs. - 12 yrs. (3 yrs.) | |||||||||||||||||||||||||||||||||||
Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies, or similar techniques, and at least one significant model assumption or input is unobservable. Level 3 financial assets also include certain investment securities for which there is limited market activity such that the determination of fair value requires significant judgment or estimation. Level 3 investment securities include certain corporate debt securities, auction rate securities, and certain mortgage-backed securities. With the exception of auction rate securities, these securities were valued using third-party pricing sources that incorporate transaction details such as contractual terms, maturity, timing, and amount of expected future cash flows, as well as assumptions about liquidity and credit valuation adjustments by market participants. The fair value of auction rate securities is estimated by Medtronic using a discounted cash flow model, which incorporates significant unobservable inputs. The significant unobservable inputs used in the fair value measurement of Medtronic’s auction rate securities are years to principal recovery and the illiquidity premium that is incorporated into the discount rate. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value of the securities. Additionally, Medtronic uses Level 3 inputs in the measurement of contingent consideration and related liabilities for all acquisitions subsequent to April 24, 2009. See Note 3 for further information regarding contingent consideration. | Illiquidity premium | 6% | ||||||||||||||||||||||||||||||||||||
The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s policy is to recognize transfers into and out of levels within the fair value hierarchy at the end of the fiscal quarter in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers between Level 1, Level 2, or Level 3 during the fiscal years ended April 25, 2014 or April 26, 2013. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. | ||||||||||||||||||||||||||||||||||||||
The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3): | ||||||||||||||||||||||||||||||||||||||
The following table represents the range of the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 as of July 25, 2014: | ||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Corporate debt | Auction rate | Mortgage- | Other asset- | |||||||||||||||||||||||||||||||||
Investments | securities | securities | backed securities | backed securities | ||||||||||||||||||||||||||||||||||
Valuation | Unobservable Input | Range | Balance as of April 26, 2013 | $ | 127 | $ | 10 | $ | 103 | $ | 14 | $ | — | |||||||||||||||||||||||||
Total realized losses and other-than-temporary impairment losses included in earnings | (5 | ) | — | (5 | ) | — | — | |||||||||||||||||||||||||||||||
Technique | (Weighted Average) | Total unrealized gains included in other comprehensive income | 4 | — | 3 | 1 | — | |||||||||||||||||||||||||||||||
Auction rate securities | Discounted cash flow | Years to principal recovery Illiquidity premium | 2 yrs. - 12 yrs. (3 yrs.) 6% | Settlements | (20 | ) | (1 | ) | (4 | ) | (15 | ) | — | |||||||||||||||||||||||||
Medtronic reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. Medtronic’s policy is to recognize transfers into and out of levels within the fair value hierarchy at the end of the fiscal quarter in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers between Level 1, Level 2, or Level 3 during the three months ended July 25, 2014 or July 26, 2013. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. | Balance as of April 25, 2014 | $ | 106 | $ | 9 | $ | 97 | $ | — | $ | — | |||||||||||||||||||||||||||
The following tables provide a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3) for the three months ended July 25, 2014 and July 26, 2013: | ||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Corporate debt | Auction rate | Mortgage- | Other asset- | |||||||||||||||||||||||||||||||||
Investments | securities | securities | backed securities | backed securities | ||||||||||||||||||||||||||||||||||
Balance as of April 27, 2012 | $ | 172 | $ | 10 | $ | 127 | $ | 29 | $ | 6 | ||||||||||||||||||||||||||||
Three months ended July 25, 2014 | Total unrealized gains included in other comprehensive income | 11 | — | 11 | — | — | ||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Corporate debt | Auction rate | Mortgage- | Settlements | (56 | ) | — | (35 | ) | (15 | ) | (6 | ) | ||||||||||||||||||||||||
Investments | securities | securities | backed securities | |||||||||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 106 | $ | 9 | $ | 97 | $ | — | Balance as of April 26, 2013 | $ | 127 | $ | 10 | $ | 103 | $ | 14 | $ | — | |||||||||||||||||||
Total unrealized gains included in other comprehensive income | 2 | — | 2 | — | ||||||||||||||||||||||||||||||||||
Balance as of July 25, 2014 | $ | 108 | $ | 9 | $ | 99 | $ | — | Assets and Liabilities That Are Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||||||||||||||
Non-financial assets such as equity and other securities that are accounted for using the cost or equity method, goodwill and IPR&D, intangible assets, and property, plant, and equipment are measured at fair value when there is an indicator of impairment and recorded at fair value only when an impairment is recognized. | ||||||||||||||||||||||||||||||||||||||
Three months ended July 26, 2013 | The Company holds investments in equity and other securities that are accounted for using the cost or equity method, which are classified as other assets in the consolidated balance sheets. The aggregate carrying amount of these investments was $666 million as of April 25, 2014 and $549 million as of April 26, 2013. These cost or equity method investments are measured at fair value on a nonrecurring basis. The fair value of the Company’s cost or equity method investments is not estimated if there are no identified events or changes in circumstance that may have a significant adverse effect on the fair value of these investments. During fiscal years 2014, 2013, and 2012, the Company determined that the fair values of certain cost method investments were below their carrying values and that the carrying values of these investments were not expected to be recoverable within a reasonable period of time. As a result, the Company recognized $10 million, $21 million, and $10 million in impairment charges in fiscal years 2014, 2013, and 2012, respectively. These investments fall within Level 3 of the fair value hierarchy, due to the use of significant unobservable inputs to determine fair value, as the investments are privately-held entities without quoted market prices. To determine the fair value of these investments, the Company used all pertinent financial information available related to the entities, including financial statements and market participant valuations from recent and proposed equity offerings. | |||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Corporate debt | Auction rate | Mortgage- | The Company assesses the impairment of goodwill annually in the third quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. The aggregate carrying amount of goodwill was $10.593 billion as of April 25, 2014 and $10.329 billion as of April 26, 2013, respectively. | |||||||||||||||||||||||||||||||||
Investments | securities | securities | backed securities | Impairment testing for goodwill is performed at the reporting unit level. The test for impairment of goodwill requires the Company to make several estimates about fair value, most of which are based on projected future cash flows. The Company calculated the excess of each reporting unit’s fair value over its carrying amount, including goodwill, utilizing a discounted cash flow analysis. As a result of the analysis performed, the fair value of each reporting unit’s goodwill was deemed to be greater than the carrying value. The Company did not record any goodwill impairments during fiscal years 2014, 2013, or 2012. | ||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 127 | $ | 10 | $ | 103 | $ | 14 | The recently acquired businesses of Cardiocom and Kanghui are separate reporting units and are tested for goodwill impairment independently; therefore, they are more sensitive to changes in assumptions impacting fair value. The carrying amount of goodwill was $409 million and $123 million for the Kanghui and Cardiocom reporting units, respectively, as of April 25, 2014. As of the date of the goodwill testing, the fair values of these two reporting units exceeded their respective carrying values by more than 10 percent. | |||||||||||||||||||||||||||||
Total unrealized gains included in other comprehensive income | 5 | — | 4 | 1 | The Company assesses the impairment of IPR&D annually in the third quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. The aggregate carrying amount of IPR&D was $119 million as of April 25, 2014 and $363 million as of April 26, 2013, respectively. The majority of IPR&D at April 25, 2014 is related to IN.PACT family of drug-eluting balloons. Similar to the goodwill impairment test, the IPR&D impairment test requires the Company to make several estimates about fair value, most of which are based on projected future cash flows. The Company calculated the excess of IPR&D asset fair values over their carrying values utilizing a discounted future cash flow analysis. As a result of the analysis performed during fiscal year 2014, the fair value of certain IPR&D assets were deemed to be less than their carrying value, resulting in an impairment loss of $207 million, primarily related to the Ardian acquisition, that was recorded in acquisition-related items in the consolidated statements of earnings. The Ardian impairment resulted from the Company’s January 2014 announcement that the U.S. pivotal trial in renal denervation for treatment-resistant hypertension, Symplicity HTN-3, failed to meet its primary efficacy endpoint. Based on the results of the trial, the Company suspended enrollment in the renal denervation hypertension trials that were being conducted in the U.S., Japan, and India. See discussion below for additional information on impairments recorded on the Ardian long-lived asset group. As a result of the analysis performed during fiscal year 2013, the fair value of IPR&D assets were deemed to be less than the carrying value, resulting in a pre-tax impairment loss of $5 million that was recorded in acquisition-related items in the consolidated statements of earnings. The Company did not record any IPR&D impairments during fiscal year 2012. Due to the nature of IPR&D projects, the Company may experience future delays or failures to obtain regulatory approvals to conduct clinical trials, failures of such clinical trials, delays or failures to obtain required market clearances or other failures to achieve a commercially viable product, and as a result, may record impairment losses in the future. | |||||||||||||||||||||||||||||||||
The Company assesses intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset (asset group) may not be recoverable. The aggregate carrying amount of intangible assets, excluding IPR&D, was $2.167 billion as of April 25, 2014 and $2.310 billion as of April 26, 2013. When events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable, the Company calculates the excess of an intangible asset’s carrying value over its undiscounted future cash flows. If the carrying value is not recoverable, an impairment loss is recorded based on the amount by which the carrying value exceeds the fair value. The inputs used in the fair value analysis fall within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value. During fiscal years 2014, 2013 and 2012, the Company determined that a change in events and circumstances indicated that the carrying amount of certain intangible assets, representing less than five percent of the total aggregate carrying amount of intangible assets, may not be fully recoverable. During fiscal year 2014, the carrying amount of Ardian intangible assets was less than the undiscounted future cash flows, therefore, the Company assessed the fair value of the assets and recorded an impairment of $41 million that was included in acquisition-related items in the consolidated statements of earnings. During fiscal year 2013, the carrying amount of one intangible asset was less than the undiscounted future cash flows, therefore, the Company assessed the asset’s fair value and there were no material impairments recorded. The Company did not record any intangible asset impairments during fiscal year 2012. | ||||||||||||||||||||||||||||||||||||||
Balance as of July 26, 2013 | $ | 132 | $ | 10 | $ | 107 | $ | 15 | The Company assesses the impairment of property, plant, and equipment whenever events or changes in circumstances indicate that the carrying amount of property, plant, and equipment assets may not be recoverable. During fiscal year 2014, the Company determined that a change in events and circumstances indicated that the carrying amount of Ardian property, plant, and equipment may not be fully recoverable and recorded an impairment of $3 million that was recorded in acquisition-related items in the consolidated statements of earnings. As part of the Company’s restructuring initiatives, the Company recorded property, plant, and equipment impairments of $16 million, $6 million, and $9 million during fiscal years 2014, 2013, and 2012, respectively, in restructuring charges, net in the consolidated statements of earnings. For further discussion of the restructuring initiatives refer to Note 3. | |||||||||||||||||||||||||||||
Financial Instruments Not Measured at Fair Value | ||||||||||||||||||||||||||||||||||||||
The estimated fair value of the Company’s long-term debt, including the short-term portion, as of April 25, 2014 was $11.856 billion compared to a principal value of $11.375 billion, and as of April 26, 2013 was $10.820 billion compared to a principal value of $9.928 billion. Fair value was estimated using quoted market prices for the publicly registered senior notes, classified as Level 1 within the fair value hierarchy. The fair values and principal values consider the terms of the related debt and exclude the impacts of debt discounts and derivative/hedging activity. | ||||||||||||||||||||||||||||||||||||||
Assets and Liabilities That Are Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||||||||||||||||||||
Non-financial assets such as equity and other securities that are accounted for using the cost or equity method, goodwill and in-process research and development (IPR&D), intangible assets, and property, plant, and equipment are measured at fair value when there is an indicator of impairment and recorded at fair value only when an impairment is recognized. | ||||||||||||||||||||||||||||||||||||||
Medtronic holds investments in equity and other securities that are accounted for using the cost or equity method, which are classified as other assets in the condensed consolidated balance sheets. The aggregate carrying amount of these investments was $618 million as of July 25, 2014 and $666 million as of April 25, 2014. These cost or equity method investments are measured at fair value on a nonrecurring basis. The fair value of Medtronic’s cost or equity method investments is not estimated if there are no identified events or changes in circumstance that may have a significant adverse effect on the fair value of these investments. Medtronic did not record any significant impairment charges related to cost method investments during the three months ended July 25, 2014 and did not record any impairment charges to cost method investments during the three months ended July 26, 2013. These investments fall within Level 3 of the fair value hierarchy, due to the use of significant unobservable inputs to determine fair value, as the investments are privately-held entities without quoted market prices. To determine the fair value of these investments, Medtronic used all pertinent financial information available related to the entities, including financial statements and market participant valuations from recent and proposed equity offerings. | ||||||||||||||||||||||||||||||||||||||
Medtronic assesses the impairment of goodwill annually in the third quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. The aggregate carrying amount of goodwill was $10.696 billion and $10.593 billion as of July 25, 2014 and April 25, 2014, respectively. | ||||||||||||||||||||||||||||||||||||||
Impairment testing for goodwill is performed at the reporting unit level. The test for impairment of goodwill requires Medtronic to make several estimates about fair value, most of which are based on projected future cash flows. Medtronic calculates the excess of each reporting unit’s fair value over its carrying amount, Including goodwill, utilizing a discounted cash flow analysis. Medtronic did not record any goodwill impairments during the three months ended July 25, 2014 or July 26, 2013. | ||||||||||||||||||||||||||||||||||||||
The recently acquired businesses of Cardiocom and Kanghui are separate reporting units and are tested for goodwill impairment independently; therefore, they are more sensitive to changes in assumptions impacting fair value. The carrying amount of goodwill was $410 million and $123 million for the Kanghui and Cardiocom reporting units, respectively, as of July 25, 2014. As of the date of the annual goodwill impairment test, the fair values of these two reporting units exceeded their respective carrying values by more than 10 percent. | ||||||||||||||||||||||||||||||||||||||
Medtronic assesses the impairment of IPR&D annually in the third quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. The aggregate carrying amount of IPR&D was $116 million and $119 million as of July 25, 2014 and April 25, 2014, respectively. The majority of IPR&D at July 25, 2014 is related to IN.PACT family of drug-eluting balloons. Similar to the goodwill impairment test, the IPR&D impairment test requires Medtronic to make several estimates about fair value, most of which are based on projected future cash flows. | ||||||||||||||||||||||||||||||||||||||
Medtronic calculates the excess of IPR&D asset fair values over their carrying values utilizing a discounted future cash flow analysis. Medtronic did not record any IPR&D impairments during the three months ended July 25, 2014 or July 26, 2013. Due to the nature of IPR&D projects, Medtronic may experience future delays or failures to obtain regulatory approvals to conduct clinical trials, failures of such clinical trials, delays or failures to obtain required market clearances or other failures to achieve a commercially viable product, and as a result, may record impairment losses in the future. | ||||||||||||||||||||||||||||||||||||||
Medtronic assesses intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset (asset group) may not be recoverable. The aggregate carrying amount of intangible assets, excluding IPR&D, was $2.225 billion as of July 25, 2014 and $2.167 billion as of April 25, 2014. When events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable, Medtronic calculates the excess of an intangible asset’s carrying value over its undiscounted future cash flows. If the carrying value is not recoverable, an impairment loss is recorded based on the amount by which the carrying value exceeds the fair value. The inputs used in the fair value analysis fall within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value. Medtronic did not record any significant intangible asset impairments during the three months ended July 25, 2014 or July 26, 2013. | ||||||||||||||||||||||||||||||||||||||
Medtronic assesses the impairment of property, plant, and equipment whenever events or changes in circumstances indicate that the carrying amount of property, plant, and equipment assets may not be recoverable. As part of Medtronic’s restructuring initiatives, Medtronic recorded property, plant, and equipment impairments of $9 million during the three months ended July 25, 2014 in restructuring charges, net in the condensed consolidated statements of earnings. For further discussion of the restructuring initiatives refer to Note 5. Medtronic did not record any significant impairments of property, plant, and equipment during the three months ended July 26, 2013. | ||||||||||||||||||||||||||||||||||||||
Financial Instruments Not Measured at Fair Value | ||||||||||||||||||||||||||||||||||||||
The estimated fair value of Medtronic’s long-term debt, including the short-term portion, as of July 25, 2014 was $11.873 billion compared to a principal value of $11.375 billion, and as of April 25, 2014 was $11.856 billion compared to a principal value of $11.375 billion. Fair value was estimated using quoted market prices for the publicly registered senior notes, classified as Level 1 within the fair value hierarchy. The fair values and principal values consider the terms of the related debt and exclude the impacts of debt discounts and derivative/hedging activity. |
Financing_Arrangements
Financing Arrangements | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||||
Financing Arrangements | ' | ' | ||||||||||||||||||||||||||||
Note 8 – Financing Arrangements | 8. Financing Arrangements | |||||||||||||||||||||||||||||
Commercial Paper | Debt consisted of the following: | |||||||||||||||||||||||||||||
Medtronic maintains a commercial paper program that allows Medtronic to have a maximum of $2.250 billion in commercial paper outstanding, with maturities up to 364 days from the date of issuance. As of July 25, 2014, outstanding commercial paper totaled $830 million. No amounts were outstanding as of April 25, 2014. During the three months ended July 25, 2014, the weighted average original maturity of the commercial paper outstanding was approximately 28 days, and the weighted average interest rate was 0.10 percent. The issuance of commercial paper reduces the amount of credit available under Medtronic’s existing line of credit. | ||||||||||||||||||||||||||||||
Line of Credit | ||||||||||||||||||||||||||||||
Medtronic has a $2.250 billion syndicated credit facility which expires on December 17, 2017 (Credit Facility). The Credit Facility provides Medtronic with the ability to increase its borrowing capacity by an additional $750 million at any time during the term of the agreement. At each anniversary date of the Credit Facility, but not more than twice prior to the maturity date, Medtronic can also request a one-year extension of the maturity date. The Credit Facility provides backup funding for the commercial paper program. As of July 25, 2014 and April 25, 2014, no amounts were outstanding on the committed line of credit. | April 25, 2014 | April 26, 2013 | ||||||||||||||||||||||||||||
Interest rates are determined by a pricing matrix, based on Medtronic’s long-term debt ratings, assigned by Standard & Poor’s Ratings Services and Moody’s Investors Service. Facility fees are payable on the Credit Facility and are determined in the same manner as the interest rates. The agreement also contains customary covenants, all of which Medtronic remains in compliance with as of July 25, 2014. | (in millions, except interest rates) | Maturity by | Payable | Effective | Payable | Effective | ||||||||||||||||||||||||
Other Credit Agreements | Fiscal Year | Interest | Interest | |||||||||||||||||||||||||||
In conjunction with the Pending Acquisition of Covidien, on June 15, 2014, Medtronic, Inc. entered into a senior unsecured bridge credit agreement (the Bridge Credit Agreement) among Medtronic, Inc., New Medtronic, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent. Under the Bridge Credit Agreement, Bank of America, N.A. has committed to provide Medtronic, Inc. with unsecured financing in an aggregate principal amount of up to $2.8 billion for a 364-day period from the date that any loans are funded under the Bridge Credit Agreement. The commitments are intended to be drawn to finance, in part, the cash component of the acquisition consideration and certain transaction expenses to the extent Medtronic, Inc. does not arrange for alternative financing prior to the consummation of the Pending Acquisition. New Medtronic has guaranteed the obligations of Medtronic, Inc. under the Bridge Credit Agreement. If Medtronic, Inc. draws loans under the Bridge Credit Agreement, it intends to refinance any debt incurred thereunder. | Rate | Rate | ||||||||||||||||||||||||||||
Medtronic, Inc. expects that it, New Medtronic and IrSub will require approximately an additional $13.2 billion in order to finance the remaining cash component of the acquisition consideration, excluding certain transaction expenses. Medtronic, Inc. expects that it, or its affiliates, will have cash equivalents in such amount available to it by the time of the consummation of the Pending Acquisition. In order to backstop the anticipated amount of cash on hand at the consummation of the Pending Acquisition, on June 15, 2014, IrSub entered into a senior unsecured cash bridge credit agreement (the Cash Bridge Credit Agreement and together with the Bridge Credit Agreement, the Credit Agreements) among IrSub, New Medtronic, the lenders from time to time party thereto and Bank of America as administrative agent. Under the Cash Bridge Credit Agreement, Bank of America, N.A. has committed to provide IrSub with unsecured financing in an aggregate principal amount of up to $13.5 billion for a 60-day period from the date that any loans are funded under the Cash Bridge Credit Agreement. New Medtronic has also guaranteed the obligations of IrSub under the Cash Bridge Credit Agreement and each of Medtronic, Inc. and Covidien has agreed to provide additional guarantees of such obligations following the consummation of the Pending Acquisition. IrSub is not currently planning to draw funds under the Cash Bridge Credit Agreement. Instead, IrSub expects to obtain intercompany loans on arm’s length terms from certain Medtronic, Inc. affiliates using proceeds of the liquidation of cash equivalents by such Medtronic, Inc. affiliates. If IrSub draws loans under the Cash Bridge Credit Agreement, such loans would be expected to be repaid from the proceeds of intercompany loans on arm’s length terms from certain Medtronic, Inc. affiliates using proceeds from the liquidation of cash equivalents by such Medtronic, Inc. affiliates. | Short-Term Borrowings: | |||||||||||||||||||||||||||||
The funding of the loans under each Credit Agreement (the Closing Date) is conditioned on, among other things, the consummation of the Pending Acquisition and the absence of certain events of defaults described in each Credit Agreement. The commitments under each Credit Agreement automatically terminate on the earliest of (a) the funding and disbursement of the loans to the borrower on the Closing Date, (b) the occurrence of certain mandatory cancellation events or (c) March 15, 2015 (or if all but certain conditions under the Transaction Agreement have been completed, one year after June 15, 2015). | Commercial paper | 2014 | $ | — | — | $ | 125 | 0.21 | % | |||||||||||||||||||||
For further information regarding the Pending Acquisition, see Note 3 and Note 21 to the condensed consolidated financial statements. | Capital lease obligations | 2014-2015 | 14 | 3.33 | % | 14 | 3.3 | % | ||||||||||||||||||||||
Bank Borrowings | Bank borrowings | 2014-2015 | 337 | 0.35 | % | 221 | 0.57 | % | ||||||||||||||||||||||
Bank borrowings consist primarily of borrowings at interest rates considered favorable by management and where natural hedges can be gained for foreign exchange purposes. | 3.000 percent five-year 2010 senior notes | 2015 | 1,250 | 3 | % | — | — | |||||||||||||||||||||||
Interest rate swaps | 2015 | 12 | — | — | — | |||||||||||||||||||||||||
Long-Term Debt | 4.500 percent five-year 2009 senior notes | 2014 | — | — | 550 | 4.5 | % | |||||||||||||||||||||||
Long-term debt consisted of the following: | ||||||||||||||||||||||||||||||
Total Short-Term Borrowings | $ | 1,613 | $ | 910 | ||||||||||||||||||||||||||
(in millions, except interest rates) | Maturity by | Payable as of | Payable as of | Long-Term Debt: | ||||||||||||||||||||||||||
Fiscal Year | July 25, 2014 | April 25, 2014 | 3.000 percent five-year 2010 senior notes | 2015 | $ | — | — | $ | 1,250 | 3 | % | |||||||||||||||||||
4.750 percent ten-year 2005 senior notes | 2016 | $ | 600 | $ | 600 | 4.750 percent ten-year 2005 senior notes | 2016 | 600 | 4.76 | % | 600 | 4.76 | % | |||||||||||||||||
2.625 percent five-year 2011 senior notes | 2016 | 500 | 500 | 2.625 percent five-year 2011 senior notes | 2016 | 500 | 2.72 | % | 500 | 2.72 | % | |||||||||||||||||||
Floating rate three-year 2014 senior notes | 2017 | 250 | 250 | Floating rate three-year 2014 senior notes | 2017 | 250 | 0.32 | % | — | — | ||||||||||||||||||||
0.875 percent three-year 2014 senior notes | 2017 | 250 | 250 | 0.875 percent three-year 2014 senior notes | 2017 | 250 | 0.91 | % | — | — | ||||||||||||||||||||
1.375 percent five-year 2013 senior notes | 2018 | 1,000 | 1,000 | 1.375 percent five-year 2013 senior notes | 2018 | 1,000 | 1.41 | % | 1,000 | 1.41 | % | |||||||||||||||||||
5.600 percent ten-year 2009 senior notes | 2019 | 400 | 400 | 5.600 percent ten-year 2009 senior notes | 2019 | 400 | 5.61 | % | 400 | 5.61 | % | |||||||||||||||||||
4.450 percent ten-year 2010 senior notes | 2020 | 1,250 | 1,250 | 4.450 percent ten-year 2010 senior notes | 2020 | 1,250 | 4.47 | % | 1,250 | 4.47 | % | |||||||||||||||||||
4.125 percent ten-year 2011 senior notes | 2021 | 500 | 500 | 4.125 percent ten-year 2011 senior notes | 2021 | 500 | 4.19 | % | 500 | 4.19 | % | |||||||||||||||||||
3.125 percent ten-year 2012 senior notes | 2022 | 675 | 675 | 3.125 percent ten-year 2012 senior notes | 2022 | 675 | 3.16 | % | 675 | 3.16 | % | |||||||||||||||||||
2.750 percent ten-year 2013 senior notes | 2023 | 1,250 | 1,250 | 2.750 percent ten-year 2013 senior notes | 2023 | 1,250 | 2.78 | % | 1,250 | 2.78 | % | |||||||||||||||||||
3.625 percent ten-year 2014 senior notes | 2024 | 850 | 850 | 3.625 percent ten-year 2014 senior notes | 2024 | 850 | 3.65 | % | — | — | ||||||||||||||||||||
6.500 percent thirty-year 2009 senior notes | 2039 | 300 | 300 | 6.500 percent thirty-year 2009 senior notes | 2039 | 300 | 6.52 | % | 300 | 6.52 | % | |||||||||||||||||||
5.550 percent thirty-year 2010 senior notes | 2040 | 500 | 500 | 5.550 percent thirty-year 2010 senior notes | 2040 | 500 | 5.56 | % | 500 | 5.56 | % | |||||||||||||||||||
4.500 percent thirty-year 2012 senior notes | 2042 | 400 | 400 | 4.500 percent thirty-year 2012 senior notes | 2042 | 400 | 4.51 | % | 400 | 4.51 | % | |||||||||||||||||||
4.000 percent thirty-year 2013 senior notes | 2043 | 750 | 750 | 4.000 percent thirty-year 2013 senior notes | 2043 | 750 | 4.12 | % | 750 | 4.12 | % | |||||||||||||||||||
4.625 percent thirty-year 2014 senior notes | 2044 | 650 | 650 | 4.625 percent thirty-year 2014 senior notes | 2044 | 650 | 4.67 | % | — | — | ||||||||||||||||||||
Interest rate swaps | 2016-2022 | 71 | 56 | Interest rate swaps | 2015-2022 | 56 | — | 181 | — | |||||||||||||||||||||
Deferred gains from interest rate swap terminations | — | 15 | 20 | Deferred gains from interest rate swap terminations, net | — | 20 | — | 50 | — | |||||||||||||||||||||
Capital lease obligations | 2016-2025 | 136 | 139 | Capital lease obligations | 2015-2025 | 139 | 3.62 | % | 152 | 3.59 | % | |||||||||||||||||||
Discount | 2017-2044 | (24 | ) | (25 | ) | Bank borrowings | 2015 | — | — | 3 | 5 | % | ||||||||||||||||||
Discount | 2017-2044 | (25 | ) | — | (20 | ) | — | |||||||||||||||||||||||
Total Long-Term Debt | $ | 10,323 | $ | 10,315 | ||||||||||||||||||||||||||
Total Long-Term Debt | $ | 10,315 | $ | 9,741 | ||||||||||||||||||||||||||
Senior Notes | ||||||||||||||||||||||||||||||
Medtronic has outstanding unsecured senior obligations including those indicated as “senior notes” in the long-term debt table above (collectively, the Senior Notes). The Senior Notes rank equally with all other unsecured and unsubordinated indebtedness of Medtronic. The indentures under which the Senior Notes were issued contain customary covenants, all of which Medtronic remains in compliance with as of July 25, 2014. Medtronic used the net proceeds from the sale of the Senior Notes primarily for working capital and general corporate uses, which includes the repayment of other indebtedness of Medtronic. For additional information regarding the terms of these agreements, refer to Note 8 to the consolidated audited financial statements beginning on page F-78 included in this joint proxy statement/prospectus. | Commercial Paper The Company maintains a commercial paper program that allows the Company to have a maximum of $2.250 billion in commercial paper outstanding, with maturities up to 364 days from the date of issuance. As of April 26, 2013, outstanding commercial paper totaled $125 million. No amounts were outstanding as of April 25, 2014. During fiscal years 2014 and 2013, the weighted average original maturity of the commercial paper outstanding was approximately 53 and 89 days, respectively, and the weighted average interest rate was 0.09 percent and 0.18 percent, respectively. The issuance of commercial paper reduces the amount of credit available under the Company’s existing line of credit. | |||||||||||||||||||||||||||||
As of July 25, 2014, Medtronic had interest rate swap agreements designated as fair value hedges of certain underlying fixed rate obligations including Medtronic’s $1.250 billion3.000 percent 2010 Senior Notes classified as short-term borrowings, $600 million4.750 percent 2005 Senior Notes, $500 million2.625 percent 2011 Senior Notes, $500 million4.125 percent 2011 Senior Notes, and $675 million3.125 percent 2012 Senior Notes. For additional information regarding the interest rate swap agreements, refer to Note 9. | Bank Borrowings Outstanding bank borrowings as of April 25, 2014 were short-term advances to certain non-U.S. subsidiaries under credit agreements with various banks. These advances are guaranteed by the Company. Bank borrowings consist primarily of borrowings at interest rates considered favorable by management and where natural hedges can be gained for foreign exchange purposes. | |||||||||||||||||||||||||||||
Line of Credit The Company has a $2.250 billion syndicated credit facility which expires on December 17, 2017 (Credit Facility). The Credit Facility provides the Company with the ability to increase its borrowing capacity by an additional $750 million at any time during the term of the agreement. At each anniversary date of the Credit Facility, but not more than twice prior to the maturity date, the Company can also request a one-year extension of the maturity date. The Credit Facility provides backup funding for the commercial paper program. As of April 25, 2014 and April 26, 2013, no amounts were outstanding on the committed line of credit. | ||||||||||||||||||||||||||||||
Interest rates are determined by a pricing matrix, based on the Company’s long-term debt ratings, assigned by Standard & Poor’s Ratings Services and Moody’s Investors Service. Facility fees are payable on the Credit Facility and are determined in the same manner as the interest rates. The agreement also contains customary covenants, all of which the Company remains in compliance with as of April 25, 2014. | ||||||||||||||||||||||||||||||
Senior Notes Senior Notes are unsecured, senior obligations of the Company and rank equally with all other unsecured and unsubordinated indebtedness of the Company. The indentures under which the Senior Notes were issued contain customary covenants, all of which the Company remains in compliance with as of April 25, 2014. The Company used the net proceeds from the sale of the Senior Notes primarily for working capital and general corporate uses, which includes the repayment of other indebtedness of the Company. | ||||||||||||||||||||||||||||||
In February 2014, the Company issued four tranches of Senior Notes (collectively, the 2014 Senior Notes) with an aggregate face value of $2.000 billion. The first tranche consisted of $250 million of floating rate Senior Notes due 2017. The 2017 floating rate notes bear interest at the three-month London InterBank Offered Rate (LIBOR) plus 9 basis points. The second tranche consisted of $250 million of 0.875 percent Senior Notes due 2017. The third tranche consisted of $850 million of 3.625 percent Senior Notes due 2024. The fourth tranche consisted of $650 million of 4.625 percent Senior Notes due 2044. Interest on the 2017 floating rate notes is payable quarterly and interest on the other 2014 Senior Notes are payable semi-annually. The Company used the net proceeds for working capital and general corporate purposes, including repayment of indebtedness. | ||||||||||||||||||||||||||||||
In March 2013, the Company issued three tranches of Senior Notes (collectively, the 2013 Senior Notes) with an aggregate face value of $3.000 billion. The first tranche consisted of $1.000 billion of 1.375 percent Senior Notes due 2018. The second tranche consisted of $1.250 billion of 2.750 percent Senior Notes due 2023. The third tranche consisted of $750 million of 4.000 percent Senior Notes due 2043. Interest on each series of the 2013 Senior Notes is payable semi-annually on April 1 and October 1 of each year, commencing on October 1, 2013. The Company used the net proceeds from the sale of the 2013 Senior Notes for working capital and general corporate purposes, including repayment of indebtedness. | ||||||||||||||||||||||||||||||
As of April 25, 2014 and April 26, 2013, the Company had interest rate swap agreements designated as fair value hedges of certain underlying fixed-rate obligations including the Company’s $1.250 billion 3.000 percent 2010 Senior Notes, $600 million 4.750 percent 2005 Senior Notes, $500 million 2.625 percent 2011 Senior Notes, $500 million 4.125 percent 2011 Senior Notes, and $675 million 3.125 percent 2012 Senior Notes. For additional information regarding the interest rate swap agreements, refer to Note 9. | ||||||||||||||||||||||||||||||
Senior Convertible Notes In April 2006, the Company issued $2.200 billion of 1.500 percent Senior Convertible Notes due 2011 (2011 Senior Convertible Notes) and $2.200 billion of 1.625 percent Senior Convertible Notes due 2013 (2013 Senior Convertible Notes) (collectively, the Senior Convertible Notes). No amounts were outstanding on the Senior Convertible Notes as of April 25, 2014 and April 26, 2013. | ||||||||||||||||||||||||||||||
The Company allocated the proceeds from the issuance of the Senior Convertible Notes between a liability component (issued at a discount) and an equity component. The resulting debt discount was amortized over the period the 2013 Senior Convertible Notes were outstanding as additional non-cash interest expense. | ||||||||||||||||||||||||||||||
In separate private transactions, the Company sold 82 million shares of the Company’s common stock at an exercise price of $76.56 per share. As of April 25, 2014, the warrants for 82 million shares of the Company’s common stock had expired. The warrants were recorded as an addition to equity as of the trade date. The carrying amount of the equity component as of April 25, 2014 and April 26, 2013 was $547 million. | ||||||||||||||||||||||||||||||
The following table provides interest expense amounts related to the Senior Convertible Notes. | ||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||||||||||||||||||
Interest cost related to contractual interest coupon | $ | 35 | $ | 36 | ||||||||||||||||||||||||||
Interest cost related to amortization of the discount | 90 | 87 | ||||||||||||||||||||||||||||
Contractual maturities of debt for the next five fiscal years and thereafter, excluding the debt discount, the fair value of outstanding interest rate swap agreements, and the remaining deferred gains from terminated interest rate swap agreements are as follows: | ||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||
2015 | $ | 1,601 | ||||||||||||||||||||||||||||
2016 | 1,112 | |||||||||||||||||||||||||||||
2017 | 531 | |||||||||||||||||||||||||||||
2018 | 1,018 | |||||||||||||||||||||||||||||
2019 | 419 | |||||||||||||||||||||||||||||
Thereafter | 7,184 | |||||||||||||||||||||||||||||
Total debt | 11,865 | |||||||||||||||||||||||||||||
Less: Current portion of debt | 1,601 | |||||||||||||||||||||||||||||
Long-term portion of debt | $ | 10,264 | ||||||||||||||||||||||||||||
Derivatives_and_Foreign_Exchan
Derivatives and Foreign Exchange Risk Management | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||
Derivatives and Foreign Exchange Risk Management | ' | ' | ||||||||||||||||||||||||||||||||
9. Derivatives and Foreign Exchange Risk Management | ||||||||||||||||||||||||||||||||||
Note 9 – Derivatives and Foreign Exchange Risk Management | The Company uses operational and economic hedges, as well as currency exchange rate derivative contracts and interest rate derivative instruments, to manage the impact of currency exchange and interest rate changes on earnings and cash flows. In order to minimize earnings and cash flow volatility resulting from currency exchange rate changes, the Company enters into derivative instruments, principally forward currency exchange rate contracts. These contracts are designed to hedge anticipated foreign currency transactions and changes in the value of specific assets and liabilities. At inception of the forward contract, the derivative is designated as either a freestanding derivative or a cash flow hedge. The primary currencies of the derivative instruments are the Euro and Japanese Yen. The Company does not enter into currency exchange rate derivative contracts for speculative purposes. The gross notional amount of all currency exchange rate derivative instruments outstanding at April 25, 2014 and April 26, 2013 was $8.051 billion and $6.812 billion, respectively. The aggregate currency exchange rate (losses) gains were $(1) million, $25 million, and $(183) million, in fiscal years 2014, 2013, and 2012, respectively. These (losses) gains represent the net impact to the consolidated statements of earnings for the exchange rate derivative instruments presented below, as well as the remeasurement (losses) gains on foreign currency denominated assets and liabilities. | |||||||||||||||||||||||||||||||||
The information that follows explains the various types of derivatives and financial instruments used by the Company, how and why the Company uses such instruments, how such instruments are accounted for, and how such instruments impact the Company’s consolidated balance sheets, statements of earnings, and statements of cash flows. | ||||||||||||||||||||||||||||||||||
Medtronic uses operational and economic hedges, as well as currency exchange rate derivative contracts and interest rate derivative instruments to manage the impact of currency exchange and interest rate changes on earnings and cash flows. In order to minimize earnings and cash flow volatility resulting from currency exchange rate changes, Medtronic enters into derivative instruments, principally forward currency exchange rate contracts. These contracts are designed to hedge anticipated foreign currency transactions and changes in the value of specific assets and liabilities. At inception of the forward contract, the derivative is designated as either a freestanding derivative or a cash flow hedge. The primary currencies of the derivative instruments are the Euro and Japanese Yen. Medtronic does not enter into currency exchange rate derivative contracts for speculative purposes. The gross notional amount of all currency exchange rate derivative instruments outstanding at July 25, 2014 and April 25, 2014 was $7.306 billion and $8.051 billion, respectively. The aggregate currency exchange rate (losses) gains for the three months ended July 25, 2014 and July 26, 2013 were $(12) million and $3 million, respectively. These (losses) gains represent the net impact to the condensed consolidated statements of earnings for the exchange rate derivative instruments presented below, as well as the remeasurement (losses) gains on foreign currency denominated assets and liabilities. | Freestanding Derivative Forward Contracts | |||||||||||||||||||||||||||||||||
Freestanding derivative forward contracts are used to offset the Company’s exposure to the change in value of specific foreign currency denominated assets and liabilities. These derivatives are not designated as hedges, and therefore, changes in the value of these forward contracts are recognized in earnings, thereby offsetting the current earnings effect of the related change in value of foreign currency denominated assets and liabilities. The cash flows from these contracts are reported as operating activities in the consolidated statements of cash flows. The gross notional amount of these contracts, not designated as hedging instruments, outstanding at April 25, 2014 and April 26, 2013 was $2.202 billion and $2.059 billion, respectively. | ||||||||||||||||||||||||||||||||||
The information that follows explains the various types of derivatives and financial instruments used by Medtronic, how and why Medtronic uses such instruments, how such instruments are accounted for, and how such instruments impact Medtronic’s condensed consolidated balance sheets, statements of earnings, and statements of cash flows. | The amount and location of the gains in the consolidated statements of earnings related to derivative instruments, not designated as hedging instruments, for fiscal years 2014, 2013, and 2012 are as follows: | |||||||||||||||||||||||||||||||||
Freestanding Derivative Forward Contracts | ||||||||||||||||||||||||||||||||||
(in millions) | Fiscal Year | |||||||||||||||||||||||||||||||||
Freestanding derivative forward contracts are used to offset Medtronic’s exposure to the change in value of specific foreign currency denominated assets and liabilities. These derivatives are not designated as hedges, and therefore, changes in the value of these forward contracts are recognized in earnings, thereby offsetting the current earnings effect of the related change in value of foreign currency denominated assets and liabilities. The cash flows from these contracts are reported as operating activities in the condensed consolidated statements of cash flows. The gross notional amount of these contracts, not designated as hedging instruments, outstanding at July 25, 2014 and April 25, 2014, was $1.985 billion and $2.202 billion, respectively. | Derivatives Not Designated as Hedging Instruments | Location | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Other expense, net | $ | 15 | $ | 26 | $ | 53 | |||||||||||||||||||||||||||
The amount and location of the (losses) gains in the condensed consolidated statements of earnings related to derivative instruments, not designated as hedging instruments, for the three months ended July 25, 2014 and July 26, 2013 are as follows: | Cash Flow Hedges | |||||||||||||||||||||||||||||||||
Foreign Currency Exchange Rate Risk Forward contracts designated as cash flow hedges are designed to hedge the variability of cash flows associated with forecasted transactions denominated in a foreign currency that will take place in the future. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. No gains or losses relating to ineffectiveness of cash flow hedges were recognized in earnings during fiscal years 2014, 2013, or 2012. No components of the hedge contracts were excluded in the measurement of hedge ineffectiveness and no hedges were derecognized or discontinued during fiscal years 2014, 2013, or 2012. The cash flows from these contracts are reported as operating activities in the consolidated statements of cash flows. The gross notional amount of these contracts, designated as cash flow hedges, outstanding at April 25, 2014 and April 26, 2013 was $5.849 billion and $4.753 billion, respectively, and will mature within the subsequent three-year period. | ||||||||||||||||||||||||||||||||||
The amount of (losses) gains and location of the (losses) gains in the consolidated statements of earnings and other comprehensive income (OCI) related to foreign currency exchange rate contract derivative instruments designated as cash flow hedges for the fiscal years ended April 25, 2014, April 26, 2013, and April 27, 2012 are as follows: | ||||||||||||||||||||||||||||||||||
(in millions) | Three months ended | |||||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location | July 25, 2014 | July 26, 2013 | |||||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Other expense, net | $ | (24 | ) | $ | 29 | April 25, 2014 | |||||||||||||||||||||||||||
(in millions) | Gross (Losses) Gains | Effective Portion of (Losses) | ||||||||||||||||||||||||||||||||
Cash Flow Hedges | Recognized in OCI | Gains on Derivative Reclassified | ||||||||||||||||||||||||||||||||
on Effective Portion of | from AOCI into Income | |||||||||||||||||||||||||||||||||
Foreign Currency Exchange Rate Risk | Derivative | |||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount | Location | Amount | |||||||||||||||||||||||||||||||
Forward contracts designated as cash flow hedges are designed to hedge the variability of cash flows associated with forecasted transactions denominated in a foreign currency that will take place in the future. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. No gains or losses relating to ineffectiveness of cash flow hedges were recognized in earnings during the three months ended July 25, 2014 or July 26, 2013. No components of the hedge contracts were excluded in the measurement of hedge ineffectiveness and no hedges were derecognized or discontinued during the three months ended July 25, 2014 or July 26, 2013. The cash flows from these contracts are reported as operating activities in the condensed consolidated statements of cash flows. The gross notional amount of these contracts, designated as cash flow hedges, outstanding at July 25, 2014 and April 25, 2014, was $5.321 billion and $5.849 billion, respectively, and will mature within the subsequent three-year period. | Foreign currency exchange | $ | (152 | ) | Other expense, net | $ | 94 | |||||||||||||||||||||||||||
rate contracts | ||||||||||||||||||||||||||||||||||
The amount of gains (losses) and location of the gains (losses) in the condensed consolidated statements of earnings and other comprehensive income (OCI) related to foreign currency exchange rate contract derivative instruments designated as cash flow hedges for the three months ended July 25, 2014 and July 26, 2013 are as follows: | Cost of products sold | (43 | ) | |||||||||||||||||||||||||||||||
Total | $ | (152 | ) | $ | 51 | |||||||||||||||||||||||||||||
Three months ended July 25, 2014 | ||||||||||||||||||||||||||||||||||
(in millions) | Gross Gains (Losses) | Effective Portion of Gains | April 26, 2013 | |||||||||||||||||||||||||||||||
Recognized in OCI | (Losses) on Derivative Reclassified | (in millions) | Gross (Losses) Gains | Effective Portion of (Losses) | ||||||||||||||||||||||||||||||
on Effective Portion of | from AOCI into Income | Recognized in OCI | Gains on Derivative Reclassified | |||||||||||||||||||||||||||||||
Derivative | on Effective Portion of | from AOCI into Income | ||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount | Location | Amount | Derivative | ||||||||||||||||||||||||||||||
Foreign currency exchange | $ | 62 | Other expense, net | $ | 2 | Derivatives in Cash Flow Hedging Relationships | Amount | Location | Amount | |||||||||||||||||||||||||
rate contracts | Foreign currency exchange | $ | 121 | Other expense, net | $ | 103 | ||||||||||||||||||||||||||||
Cost of products sold | (3 | ) | rate contracts | |||||||||||||||||||||||||||||||
Cost of products sold | (2 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 62 | $ | (1 | ) | |||||||||||||||||||||||||||||
Total | $ | 121 | $ | 101 | ||||||||||||||||||||||||||||||
Three months ended July 26, 2013 | ||||||||||||||||||||||||||||||||||
(in millions) | Gross Gains (Losses) | Effective Portion of Gains | April 27, 2012 | |||||||||||||||||||||||||||||||
Recognized in OCI | (Losses) on Derivative Reclassified | (in millions) | Gross (Losses) Gains | Effective Portion of (Losses) | ||||||||||||||||||||||||||||||
on Effective Portion of | from AOCI into Income | Recognized in OCI | Gains on Derivative Reclassified | |||||||||||||||||||||||||||||||
Derivative | on Effective Portion of | from AOCI into Income | ||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount | Location | Amount | Derivative | ||||||||||||||||||||||||||||||
Foreign currency exchange | $ | (27 | ) | Other expense, net | $ | 32 | Derivatives in Cash Flow Hedging Relationships | Amount | Location | Amount | ||||||||||||||||||||||||
rate contracts | Foreign currency exchange | $ | 332 | Other expense, net | $ | (141 | ) | |||||||||||||||||||||||||||
Cost of products sold | (15 | ) | rate contracts | |||||||||||||||||||||||||||||||
Cost of products sold | 14 | |||||||||||||||||||||||||||||||||
Total | $ | (27 | ) | 17 | ||||||||||||||||||||||||||||||
Total | $ | 332 | $ | (127 | ) | |||||||||||||||||||||||||||||
Forecasted Debt Issuance Interest Rate Risk | Forecasted Debt Issuance Interest Rate Risk Forward starting interest rate derivative instruments designated as cash flow hedges are designed to manage the exposure to interest rate volatility with regard to future issuances of fixed-rate debt. The effective portion of the gains or losses on the forward starting interest rate derivative instruments that are designated and qualify as cash flow hedges are reported as a component of accumulated other comprehensive loss. Beginning in the period in which the planned debt issuance occurs and the related derivative instruments are terminated, the effective portion of the gains or losses are then reclassified into interest expense, net over the term of the related debt. Any portion of the gains or losses that are determined to be ineffective are immediately recognized in interest expense, net. In February 2014, the Company terminated forward starting interest rate derivative instruments with a consolidated notional amount of $250 million in conjunction with the issuance of the 2014 Senior Notes. Upon termination, there was no material ineffectiveness on the contracts which were in a net asset position, resulting in cash receipts of $8 million. In March 2013, the Company terminated forward starting interest rate derivative instruments with a consolidated notional amount of $750 million in conjunction with the issuance of the 2013 Senior Notes. Upon termination, there was no material ineffectiveness on the contracts which were in a net liability position, resulting in cash payments of $68 million. As of April 25, 2014, the Company had $250 million of fixed pay, forward starting interest rate swaps with a weighted average fixed rate of 2.83 percent in anticipation of planned debt issuances. | |||||||||||||||||||||||||||||||||
For the fiscal years ended April 25, 2014 and April 26, 2013, the Company reclassified $8 million and $1 million, respectively, of the effective portion of the net losses on forward starting interest rate derivative instruments from accumulated other comprehensive loss to interest expense, net. | ||||||||||||||||||||||||||||||||||
Forward starting interest rate derivative instruments designated as cash flow hedges are designed to manage the exposure to interest rate volatility with regard to future issuances of fixed-rate debt. The effective portion of the gains or losses on the forward starting interest rate derivative instrument that is designated and qualifies as a cash flow hedge is reported as a component of accumulated other comprehensive loss. Beginning in the period in which the planned debt issuance occurs and the related derivative instrument is terminated, the effective portion of the gains or losses is then reclassified into interest expense, net over the term of the related debt. Any portion of the gains or losses that is determined to be ineffective is immediately recognized in interest expense, net. As of July 25, 2014, Medtronic had $250 million of fixed pay, forward starting interest rate swaps with a weighted average fixed rate of 2.83 percent in anticipation of planned debt issuances. | The market value of outstanding forward starting interest rate swap derivative instruments at April 25, 2014 and April 26, 2013 was an unrealized gain (loss) of $7 million and $(18) million, respectively. These unrealized gains (losses) were recorded in other assets and long-term liabilities with the offset recorded in accumulated other comprehensive loss in the consolidated balance sheets. | |||||||||||||||||||||||||||||||||
As of April 25, 2014 and April 26, 2013, the Company had $(44) million and $58 million, respectively, in after-tax net unrealized (losses) gains associated with cash flow hedging instruments recorded in accumulated other comprehensive loss. The Company expects that $7 million of after-tax net unrealized losses as of April 25, 2014 will be reclassified into the consolidated statements of earnings over the next 12 months. | ||||||||||||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivatives as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in earnings. Interest rate derivative instruments designated as fair value hedges are designed to manage the exposure to interest rate movements and to reduce borrowing costs by converting fixed-rate debt into floating-rate debt. Under these agreements, the Company agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. | ||||||||||||||||||||||||||||||||||
For both the three months ended July 25, 2014 and July 26, 2013, Medtronic reclassified $2 million of the effective portion of the net losses on forward starting interest rate derivative instruments from accumulated other comprehensive loss to interest expense, net. | The gains (losses) from terminated interest rate swap agreements are recorded in long-term debt, increasing (decreasing) the outstanding balances of the debt, and amortized as a reduction (addition) of interest expense, net over the remaining life of the related debt. The cash flows from the termination of the interest rate swap agreements are reported as operating activities in the consolidated statements of cash flows. | |||||||||||||||||||||||||||||||||
As of both April 25, 2014 and April 26, 2013, the Company had interest rate swaps in gross notional amounts of $2.625 billion designated as fair value hedges of underlying fixed rate obligations. As of April 25, 2014 and April 26, 2013, the Company had interest rate swap agreements designated as fair value hedges of underlying fixed rate obligations including the Company’s $1.250 billion 3.000 percent 2010 Senior Notes due 2015, the $600 million 4.750 percent 2005 Senior Notes due 2016, the $500 million 2.625 percent 2011 Senior Notes due 2016, the $500 million 4.125 percent 2011 Senior Notes due 2021, and the $675 million 3.125 percent 2012 Senior Notes due 2022. | ||||||||||||||||||||||||||||||||||
The unrealized gain (loss) of outstanding forward starting interest rate swap derivative instruments as of July 25, 2014 was not significant and as of April 25, 2014 was $7 million. Unrealized gains (losses) of outstanding forward starting interest rate swap derivative instruments were recorded in other assets and long-term liabilities, with the offset recorded in accumulated other comprehensive loss in the condensed consolidated balance sheets. | In March 2012, the Company entered into ten-year fixed-to-floating interest rate swap agreements with a consolidated notional amount of $675 million, which were designated as fair value hedges of fixed interest rate obligations under the Company’s 2012 Senior Notes due 2022. The Company pays variable interest equal to one-month LIBOR plus approximately 92 basis points, and receives a fixed interest rate of 3.125 percent. | |||||||||||||||||||||||||||||||||
As of July 25, 2014 and April 25, 2014, Medtronic had $(7) million and $(44) million, respectively, in after-tax net unrealized (losses) associated with cash flow hedging instruments recorded in accumulated other comprehensive loss. Medtronic expects that $6 million of after-tax net unrealized gains as of July 25, 2014 will be reclassified into the condensed consolidated statements of earnings over the next 12 months. | In July 2011, the Company terminated interest rate swap agreements with a consolidated notional amount of $900 million that were designated as fair value hedges of the fixed interest rate obligation under the Company’s $2.200 billion 1.625 percent 2013 Senior Convertible Notes and $550 million 4.500 percent 2009 Senior Notes due 2014. Upon termination, the contracts were in an asset position, resulting in cash receipts of $46 million, which included $10 million of accrued interest. | |||||||||||||||||||||||||||||||||
In August 2011, the Company terminated interest rate swap agreements with a consolidated notional amount of $650 million that were designated as fair value hedges of the fixed interest rate obligation under the Company’s $1.250 billion 3.000 percent 2010 Senior Notes due 2015. Upon termination, the contracts were in an asset position, resulting in cash receipts of $42 million, which included $7 million of accrued interest. | ||||||||||||||||||||||||||||||||||
Fair Value Hedges | As of April 25, 2014 and April 26, 2013, the market value of outstanding interest rate swap agreements was an unrealized gain of $68 million and $181 million, respectively, and the market value of the hedged items was an unrealized loss of $68 million and $181 million, respectively, which was recorded in other assets, prepaid expenses and other current assets, and other long-term liabilities with the offsets recorded in long-term debt and short-term borrowings on the consolidated balance sheets. No hedge ineffectiveness was recorded as a result of these fair value hedges for fiscal year 2014 and 2013 and less than $1 million was recorded for fiscal year 2012 as an increase in interest expense, net on the consolidated statements of earnings. | |||||||||||||||||||||||||||||||||
During fiscal years 2014, 2013, and 2012, the Company did not have any ineffective fair value hedging instruments. In addition, the Company did not recognize any gains or losses during fiscal years 2014, 2013, or 2012 on firm commitments that no longer qualify as fair value hedges. | ||||||||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivatives as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in earnings. | Balance Sheet Presentation | |||||||||||||||||||||||||||||||||
The following tables summarize the location and fair value amounts of derivative instruments reported in the consolidated balance sheets as of April 25, 2014 and April 26, 2013. The fair value amounts are presented on a gross basis and are segregated between derivatives that are designated and qualify as hedging instruments and those that are not, and are further segregated by type of contract within those two categories. | ||||||||||||||||||||||||||||||||||
Interest rate derivative instruments designated as fair value hedges are designed to manage the exposure to interest rate movements and to reduce borrowing costs by converting fixed-rate debt into floating-rate debt. Under these agreements, Medtronic agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. | ||||||||||||||||||||||||||||||||||
April 25, 2014 | ||||||||||||||||||||||||||||||||||
The gains (losses) from terminated interest rate swap agreements are recorded in long-term debt, increasing (decreasing) the outstanding balances of the debt, and amortized as a reduction (addition) of interest expense, net over the remaining life of the related debt. The cash flows from the termination of the interest rate swap agreements are reported as operating activities in the condensed consolidated statements of cash flows. | ||||||||||||||||||||||||||||||||||
As of both July 25, 2014 and April 25, 2014, Medtronic had interest rate swaps in gross notional amounts of $2.625 billion designated as fair value hedges of underlying fixed rate obligations. As of July 25, 2014, Medtronic had interest rate swap agreements designated as fair value hedges of underlying fixed rate obligations including Medtronic’s $1.250 billion 3.000 percent 2010 Senior Notes classified as short-term borrowings, the $600 million 4.750 percent 2005 Senior Notes, the $500 million 2.625 percent 2011 Senior Notes, the $500 million 4.125 percent 2011 Senior Notes, and the $675 million 3.125 percent 2012 Senior Notes. For additional information regarding the terms of Medtronic’s interest rate swap agreements, refer to Note 9 to the consolidated audited financial statements included in this joint proxy statement/prospectus. | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||||
(in millions) | Balance Sheet Location | Fair | Balance Sheet Location | Fair | ||||||||||||||||||||||||||||||
The market value of outstanding interest rate swap agreements was a net $80 million unrealized gain and the market value of the hedged item was a net $80 million unrealized loss at July 25, 2014, which were recorded in other assets, prepaid expenses and other current assets, and other long-term liabilities with the offsets recorded in long-term debt and short-term borrowings in the condensed consolidated balance sheet. No hedge ineffectiveness was recorded as a result of these fair value hedges for the three months ended July 25, 2014 or July 26, 2013. | Value | Value | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||||
During the three months ended July 25, 2014 and July 26, 2013, Medtronic did not have any ineffective fair value hedging instruments. In addition, Medtronic did not recognize any gains or losses during the three months ended July 25, 2014 or July 26, 2013 on firm commitments that no longer qualify as fair value hedges. | ||||||||||||||||||||||||||||||||||
Interest rate contracts | Prepaid expenses and other current assets | $ | 13 | Other accrued expenses | $ | — | ||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Prepaid expenses and other current assets | 81 | Other accrued expenses | 84 | ||||||||||||||||||||||||||||||
Interest rate contracts | Other assets | 73 | Other long-term liabilities | 11 | ||||||||||||||||||||||||||||||
Balance Sheet Presentation | Foreign currency exchange rate contracts | Other assets | 8 | Other long-term liabilities | 30 | |||||||||||||||||||||||||||||
The following tables summarize the location and fair value amounts of derivative instruments reported in the condensed consolidated balance sheets as of July 25, 2014 and April 25, 2014. The fair value amounts are presented on a gross basis and are segregated between derivatives that are designated and qualify as hedging instruments and those that are not, and are further segregated by type of contract within those two categories. | Total derivatives designated as hedging instruments | $ | 175 | $ | 125 | |||||||||||||||||||||||||||||
July 25, 2014 | Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Prepaid expenses and other current assets | $ | — | Other accrued expenses | $ | 2 | ||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Total derivatives not designated as hedging instruments | $ | — | $ | 2 | ||||||||||||||||||||||||||||
(in millions) | Balance Sheet Location | Fair | Balance Sheet Location | Fair | ||||||||||||||||||||||||||||||
Value | Value | Total derivatives | $ | 175 | $ | 127 | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||||
Interest rate contracts | Prepaid expenses and other current assets | $ | 9 | Other accrued expenses | $ | — | ||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Prepaid expenses and other current assets | 72 | Other accrued expenses | 52 | April 26, 2013 | |||||||||||||||||||||||||||||
Interest rate contracts | Other assets | 71 | Other long-term liabilities | — | ||||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Other assets | 23 | Other long-term liabilities | 15 | ||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 175 | $ | 67 | (in millions) | Balance Sheet Location | Fair | Balance Sheet Location | Fair | |||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Prepaid expenses and other current assets | $ | 1 | Other accrued expenses | $ | 1 | ||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Prepaid expenses and other current assets | $ | 150 | Other accrued expenses | $ | 34 | ||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 1 | $ | 1 | Interest rate contracts | Other assets | 181 | Other long-term liabilities | 18 | |||||||||||||||||||||||||
Foreign currency exchange rate contracts | Other assets | 63 | Other long-term liabilities | 5 | ||||||||||||||||||||||||||||||
Total derivatives | $ | 176 | $ | 68 | ||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 394 | $ | 57 | ||||||||||||||||||||||||||||||
April 25, 2014 | Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Prepaid expenses and other current assets | $ | — | Other accrued expenses | $ | 1 | ||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Total derivatives not designated as hedging instruments | $ | — | $ | 1 | ||||||||||||||||||||||||||||
(in millions) | Balance Sheet Location | Fair | Balance Sheet Location | Fair Value | ||||||||||||||||||||||||||||||
Value | Total derivatives | $ | 394 | $ | 58 | |||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||||
Interest rate contracts | Prepaid expenses and | $ | 13 | Other accrued expenses | $ | — | The Company has elected to present the fair value of derivative assets and liabilities within the consolidated balance sheets on a gross basis even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. The following table provides information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation. | |||||||||||||||||||||||||||
other current assets | ||||||||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Prepaid expenses and | 81 | Other accrued expenses | 84 | ||||||||||||||||||||||||||||||
other current assets | April 25, 2014 | Gross Amount Not Offset on the | ||||||||||||||||||||||||||||||||
Interest rate contracts | Other assets | 73 | Other long-term | 11 | Balance Sheet | |||||||||||||||||||||||||||||
liabilities | (in millions) | Gross Amount of | Financial | Cash Collateral | Net Amount | |||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Other assets | 8 | Other long-term | 30 | Recognized Assets | Instruments | (Received) or | |||||||||||||||||||||||||||
liabilities | (Liabilities) | Posted | ||||||||||||||||||||||||||||||||
Derivative Assets | ||||||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 175 | $ | 125 | Foreign currency exchange rate contracts | $ | 89 | $ | (64 | ) | $ | — | $ | 25 | ||||||||||||||||||||
Interest rate contracts | 86 | (31 | ) | — | 55 | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||
$ | 175 | $ | (95 | ) | $ | — | $ | 80 | ||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Prepaid expenses and | $ | — | Other accrued expenses | $ | 2 | ||||||||||||||||||||||||||||
other current assets | Derivative Liabilities | |||||||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | $ | (116 | ) | $ | 84 | $ | — | $ | (32 | ) | ||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | — | $ | 2 | Interest rate contracts | (11 | ) | 11 | — | — | ||||||||||||||||||||||||
Total derivatives | $ | 175 | $ | 127 | $ | (127 | ) | $ | 95 | $ | — | $ | (32 | ) | ||||||||||||||||||||
Total | $ | 48 | $ | — | $ | — | $ | 48 | ||||||||||||||||||||||||||
Medtronic has elected to present the fair value of derivative assets and liabilities within the condensed consolidated balance sheets on a gross basis even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. The following table provides information as if Medtronic had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation. | ||||||||||||||||||||||||||||||||||
April 26, 2013 | Gross Amount Not Offset on the | |||||||||||||||||||||||||||||||||
July 25, 2014 | Gross Amount Not Offset on the | Balance Sheet | ||||||||||||||||||||||||||||||||
Balance Sheet | (in millions) | Gross Amount of | Financial | Cash Collateral | Net Amount | |||||||||||||||||||||||||||||
(in millions) | Gross Amount of | Financial | Cash Collateral | Net Amount | Recognized Assets | Instruments | (Received) or | |||||||||||||||||||||||||||
Recognized Assets | Instruments | (Received) or | (Liabilities) | Posted | ||||||||||||||||||||||||||||||
(Liabilities) | Posted | Derivative Assets | ||||||||||||||||||||||||||||||||
Derivative Assets | Foreign currency exchange rate contracts | $ | 213 | $ | (42 | ) | $ | (24 | ) | $ | 147 | |||||||||||||||||||||||
Foreign currency exchange rate contracts | $ | 96 | $ | (50 | ) | $ | — | $ | 46 | Interest rate contracts | 181 | (16 | ) | (6 | ) | 159 | ||||||||||||||||||
Interest rate contracts | 80 | (11 | ) | — | 69 | |||||||||||||||||||||||||||||
$ | 394 | $ | (58 | ) | $ | (30 | ) | $ | 306 | |||||||||||||||||||||||||
$ | 176 | $ | (61 | ) | $ | — | $ | 115 | ||||||||||||||||||||||||||
Derivative Liabilities | ||||||||||||||||||||||||||||||||||
Derivative Liabilities | Foreign currency exchange rate contracts | $ | (40 | ) | $ | 40 | $ | — | $ | — | ||||||||||||||||||||||||
Foreign currency exchange rate contracts | $ | (68 | ) | $ | 61 | $ | — | $ | (7 | ) | Interest rate contracts | (18 | ) | 18 | — | — | ||||||||||||||||||
$ | (68 | ) | $ | 61 | $ | — | $ | (7 | ) | $ | (58 | ) | $ | 58 | $ | — | $ | — | ||||||||||||||||
Total | $ | 108 | $ | — | $ | — | $ | 108 | Total | $ | 336 | $ | — | $ | (30 | ) | $ | 306 | ||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||||||||||||||||||||
Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of interest-bearing investments, forward exchange derivative contracts, and trade accounts receivable. | ||||||||||||||||||||||||||||||||||
April 25, 2014 | Gross Amount Not Offset on the | The Company maintains cash and cash equivalents, investments, and certain other financial instruments (including currency exchange rate and interest rate derivative contracts) with various major financial institutions. The Company performs periodic evaluations of the relative credit standings of these financial institutions and limits the amount of credit exposure with any one institution. In addition, the Company has collateral credit agreements with its primary derivatives counterparties. Under these agreements, either party is required to post eligible collateral when the market value of transactions covered by the agreement exceeds specific thresholds, thus limiting credit exposure for both parties. As of April 25, 2014, no collateral was posted by either the Company or its counterparties. As of April 26, 2013, the Company received cash collateral of $30 million from its counterparties. The collateral received was recorded in cash and cash equivalents, with the offset recorded as an increase in other accrued expenses on the consolidated balance sheets. | ||||||||||||||||||||||||||||||||
Balance Sheet | Global concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of customers and their dispersion across many geographic areas. The Company monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business. However, a significant amount of trade receivables are with hospitals that are dependent upon governmental health care systems in many countries. The current economic conditions in many countries outside the U.S. (particularly the economic challenges faced by Italy, Spain, Portugal, and Greece), may continue to increase the average length of time it takes the Company to collect on its outstanding trade receivables in these countries as certain payment patterns have been impacted. As of April 25, 2014 and April 26, 2013, the Company’s aggregate accounts receivable balance for Italy, Spain, Portugal, and Greece, net of the allowance for doubtful accounts, was $628 million and $770 million, respectively. The Company continues to monitor the creditworthiness of customers located in these and other geographic areas. In the past, accounts receivable balances with certain customers in these countries have accumulated over time and were subsequently settled as large lump-sum payments. In the fourth quarter of fiscal year 2014, the Company received a $106 million payment in Spain. In the first quarter of fiscal year 2013, the Company received a $212 million payment in Spain. Although the Company does not currently foresee a significant credit risk associated with the outstanding accounts receivable, repayment is dependent upon the financial stability of the economies of these countries. For certain Greece distributors, collectability is not reasonably assured for revenue transactions and the Company defers revenue recognition until all revenue recognition criteria are met. As of April 25, 2014 and April 26, 2013, the Company’s deferred revenue balance for certain Greece distributors was $15 million and $21 million, respectively. As of April 25, 2014 and April 26, 2013, no one customer represented more than 10% of the Company’s outstanding accounts receivable. | |||||||||||||||||||||||||||||||||
(in millions) | Gross Amount of | Financial | Cash Collateral | Net Amount | ||||||||||||||||||||||||||||||
Recognized Assets | Instruments | (Received) or | ||||||||||||||||||||||||||||||||
(Liabilities) | Posted | |||||||||||||||||||||||||||||||||
Derivative Assets | ||||||||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | $ | 89 | $ | (64 | ) | $ | — | $ | 25 | |||||||||||||||||||||||||
Interest rate contracts | 86 | (31 | ) | — | 55 | |||||||||||||||||||||||||||||
$ | 175 | $ | (95 | ) | $ | — | $ | 80 | ||||||||||||||||||||||||||
Derivative Liabilities | ||||||||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | $ | (116 | ) | $ | 84 | $ | — | $ | (32 | ) | ||||||||||||||||||||||||
Interest rate contracts | (11 | ) | 11 | — | — | |||||||||||||||||||||||||||||
$ | (127 | ) | $ | 95 | $ | — | $ | (32 | ) | |||||||||||||||||||||||||
Total | $ | 48 | $ | — | $ | — | $ | 48 | ||||||||||||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||||||||||||||||||||
Financial instruments, which potentially subject Medtronic to significant concentrations of credit risk, consist principally of interest-bearing investments, forward exchange derivative contracts, and trade accounts receivable. | ||||||||||||||||||||||||||||||||||
Medtronic maintains cash and cash equivalents, investments, and certain other financial instruments (including currency exchange rate and interest rate derivative contracts) with various major financial institutions. Medtronic performs periodic evaluations of the relative credit standings of these financial institutions and limits the amount of credit exposure with any one institution. In addition, Medtronic has collateral credit agreements with its primary derivatives counterparties. Under these agreements, either party is required to post eligible collateral when the market value of transactions covered by the agreement exceeds specific thresholds, thus limiting credit exposure for both parties. As noted in the above table, as of July 25, 2014 April 25, 2014, no collateral was received or posted from its counterparties. | ||||||||||||||||||||||||||||||||||
Global concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of customers and their dispersion across many geographic areas. Medtronic monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business. However, a significant amount of trade receivables are with hospitals that are dependent upon governmental health care systems in many countries. The current economic conditions in many countries outside the U.S. (particularly the economic challenges faced by Italy, Spain, Portugal, and Greece) may continue to increase the average length of time it takes Medtronic to collect on its outstanding trade receivables in these countries as certain payment patterns have been impacted. As of July 25, 2014 and April 25, 2014, Medtronic’s aggregate accounts receivable balance for Italy, Spain, Portugal, and Greece, net of the allowance for doubtful accounts, was $619 million and $628 million, respectively. Medtronic continues to monitor the creditworthiness of customers located in these and other geographic areas. In the past, accounts receivable balances with certain customers in these countries have accumulated over time and were subsequently settled as large lump-sum payments. In the fourth quarter of fiscal year 2014, Medtronic received a $106 million payment in Spain. Although Medtronic does not currently foresee a significant credit risk associated with the outstanding accounts receivable, repayment is dependent upon the financial stability of the economies of these countries. For certain Greece distributors, collectability is not reasonably assured for revenue transactions and Medtronic defers revenue recognition until all revenue recognition criteria are met. As of July 25, 2014 and April 25, 2014, Medtronic’s deferred revenue balance for certain Greece distributors was $17 million and $15 million, respectively. As of July 25, 2014 and April 25, 2014, no one customer represented more than 10% of Medtronic’s outstanding accounts receivable. |
Inventories
Inventories | 3 Months Ended | ||||||||
Jul. 25, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note 10 – Inventories | |||||||||
Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as follows: | |||||||||
(in millions) | July 25, 2014 | April 25, 2014 | |||||||
Finished goods | $ | 1,235 | $ | 1,196 | |||||
Work in process | 283 | 247 | |||||||
Raw materials | 318 | 282 | |||||||
Total | $ | 1,836 | $ | 1,725 | |||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets, Net | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets, Net | ' | ' | ||||||||||||||||||||||||||||||||||||||||
7. Goodwill and Other Intangible Assets, Net | ||||||||||||||||||||||||||||||||||||||||||
Note 11 – Goodwill and Other Intangible Assets, Net | The changes in the carrying amount of goodwill for fiscal years 2014 and 2013 are as follows: | |||||||||||||||||||||||||||||||||||||||||
The changes in the carrying amount of goodwill for the three months ended July 25, 2014 are as follows: | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | Cardiac and | Restorative | Diabetes Group | Total | ||||||||||||||||||||||||||||||||||||||
Vascular Group | Therapies Group | |||||||||||||||||||||||||||||||||||||||||
Balance as of April 27, 2012 | $ | 2,636 | $ | 5,954 | $ | 1,344 | $ | 9,934 | ||||||||||||||||||||||||||||||||||
(in millions) | Cardiac and | Restorative | Diabetes | Total | Goodwill as a result of acquisitions | — | 414 | — | 414 | |||||||||||||||||||||||||||||||||
Vascular | Therapies | Group | Other adjustments, net | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||||
Group | Group | Currency adjustment, net | (12 | ) | (10 | ) | — | (22 | ) | |||||||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 2,881 | $ | 6,368 | $ | 1,344 | $ | 10,593 | ||||||||||||||||||||||||||||||||||
Goodwill as a result of acquisitions | 50 | 49 | — | 99 | Balance as of April 26, 2013 | $ | 2,624 | $ | 6,361 | $ | 1,344 | $ | 10,329 | |||||||||||||||||||||||||||||
Other adjustments, net | (2 | ) | — | — | (2 | ) | Goodwill as a result of acquisitions | 279 | — | — | 279 | |||||||||||||||||||||||||||||||
Currency adjustment, net | 5 | 1 | — | 6 | Other adjustments, net | (8 | ) | 7 | — | (1 | ) | |||||||||||||||||||||||||||||||
Currency adjustment, net | (14 | ) | — | — | (14 | ) | ||||||||||||||||||||||||||||||||||||
Balance as of July 25, 2014 | $ | 2,934 | $ | 6,418 | $ | 1,344 | $ | 10,696 | ||||||||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 2,881 | $ | 6,368 | $ | 1,344 | $ | 10,593 | ||||||||||||||||||||||||||||||||||
Balances of other intangible assets, net, excluding goodwill as of July 25, 2014 and April 25, 2014 are as follows: | Balances of other intangible assets, net, for fiscal years 2014 and 2013 are as follows: | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Purchased | Trademarks | Acquired | Other | Total | |||||||||||||||||||||||||||||||||||||
(in millions) | Purchased | Trademarks | Acquired | Other | Total | Technology | and | IPR&D | ||||||||||||||||||||||||||||||||||
Technology | and | IPR&D | and | Tradenames | ||||||||||||||||||||||||||||||||||||||
and | Tradenames | Patents | ||||||||||||||||||||||||||||||||||||||||
Patents | Other intangible assets as of April 25, 2014 | |||||||||||||||||||||||||||||||||||||||||
Other intangible assets as of July 25, 2014: | Original cost | $ | 3,857 | $ | 408 | $ | 119 | $ | 200 | $ | 4,584 | |||||||||||||||||||||||||||||||
Original cost | $ | 3,992 | $ | 408 | $ | 116 | $ | 190 | $ | 4,706 | Accumulated amortization | (1,878 | ) | (332 | ) | — | (88 | ) | (2,298 | ) | ||||||||||||||||||||||
Accumulated amortization | (1,946 | ) | (337 | ) | — | (82 | ) | (2,365 | ) | |||||||||||||||||||||||||||||||||
Carrying value | $ | 1,979 | $ | 76 | $ | 119 | $ | 112 | $ | 2,286 | ||||||||||||||||||||||||||||||||
Carrying value | $ | 2,046 | $ | 71 | $ | 116 | $ | 108 | $ | 2,341 | ||||||||||||||||||||||||||||||||
Weighted average original life (in years) | 12.7 | 11.8 | N/A | 8.7 | ||||||||||||||||||||||||||||||||||||||
Other intangible assets as of April 25, 2014: | ||||||||||||||||||||||||||||||||||||||||||
Original cost | $ | 3,857 | $ | 408 | $ | 119 | $ | 200 | $ | 4,584 | Other intangible assets as of April 26, 2013 | |||||||||||||||||||||||||||||||
Accumulated amortization | (1,878 | ) | (332 | ) | — | (88 | ) | (2,298 | ) | Original cost | $ | 3,896 | $ | 408 | $ | 363 | $ | 104 | $ | 4,771 | ||||||||||||||||||||||
Accumulated amortization | (1,702 | ) | (320 | ) | — | (76 | ) | (2,098 | ) | |||||||||||||||||||||||||||||||||
Carrying value | $ | 1,979 | $ | 76 | $ | 119 | $ | 112 | $ | 2,286 | ||||||||||||||||||||||||||||||||
Carrying value | $ | 2,194 | $ | 88 | $ | 363 | $ | 28 | $ | 2,673 | ||||||||||||||||||||||||||||||||
Amortization expense for the three months ended July 25, 2014 and July 26, 2013 was $87 million and $86 million, respectively. | Weighted average original life (in years) | 12.5 | 11.8 | N/A | 8.8 | |||||||||||||||||||||||||||||||||||||
Amortization expense for fiscal years 2014, 2013, and 2012 was $349 million, $331 million, and $335 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||
Estimated aggregate amortization expense based on the current carrying value of amortizable intangible assets, excluding any possible future amortization associated with acquired IPR&D, which has not met technological feasibility, is as follows: | Estimated aggregate amortization expense based on the current carrying value of amortizable intangible assets, excluding any possible future amortization associated with acquired IPR&D, which has not met technological feasibility, is as follows: | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Amortization | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Estimated | Fiscal Year | Expense | |||||||||||||||||||||||||||||||||||||||
Amortization | 2015 | $ | 338 | |||||||||||||||||||||||||||||||||||||||
Fiscal Year | Expense | 2016 | 326 | |||||||||||||||||||||||||||||||||||||||
Remaining 2015 | $ | 275 | 2017 | 304 | ||||||||||||||||||||||||||||||||||||||
2016 | 331 | 2018 | 289 | |||||||||||||||||||||||||||||||||||||||
2017 | 309 | 2019 | 244 | |||||||||||||||||||||||||||||||||||||||
2018 | 293 | Thereafter | 666 | |||||||||||||||||||||||||||||||||||||||
2019 | 249 | |||||||||||||||||||||||||||||||||||||||||
2020 | 204 | $ | 2,167 | |||||||||||||||||||||||||||||||||||||||
Thereafter | 564 | |||||||||||||||||||||||||||||||||||||||||
Total estimated amortization expense | $ | 2,225 | ||||||||||||||||||||||||||||||||||||||||
Warranty_Obligation
Warranty Obligation | 3 Months Ended | ||||||||
Jul. 25, 2014 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Warranty Obligation | ' | ||||||||
Note 12 – Warranty Obligation | |||||||||
Medtronic offers a warranty on various products. Medtronic estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect Medtronic’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and cost per claim. Medtronic periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the net costs to repair or otherwise satisfy the claim. Medtronic includes the warranty obligation in other accrued expenses and other long-term liabilities in the condensed consolidated balance sheets. Medtronic includes the covered costs associated with field actions, if any, in cost of products sold in Medtronic’s condensed consolidated statements of earnings. | |||||||||
Changes in Medtronic’s product warranty obligations during the three months ended July 25, 2014 and July 26, 2013 consisted of the following: | |||||||||
Three months ended | |||||||||
(in millions) | July 25, | July 26, | |||||||
2014 | 2013 | ||||||||
Balance at the beginning of the period | $ | 32 | $ | 35 | |||||
Warranty claims provision | 6 | 11 | |||||||
Settlements made | (7 | ) | (8 | ) | |||||
Balance at the end of the period | $ | 31 | $ | 38 | |||||
Interest_Expense_Net
Interest Expense, Net | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||
Text Block [Abstract] | ' | ' | ||||||||||||||||||||
Interest Expense, Net | ' | ' | ||||||||||||||||||||
10. Interest Expense, Net | ||||||||||||||||||||||
Note 13 – Interest Expense, Net | Interest income and interest expense for fiscal years 2014, 2013, and 2012 are as follows: | |||||||||||||||||||||
Interest income and interest expense for the three months ended July 25, 2014 and July 26, 2013 are as follows: | ||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||
Interest income | $ | (271 | ) | $ | (237 | ) | $ | (200 | ) | |||||||||||||
Three months ended | Interest expense | 379 | 388 | 349 | ||||||||||||||||||
(in millions) | July 25, 2014 | July 26, 2013 | ||||||||||||||||||||
Interest income | $ | (92 | ) | $ | (50 | ) | Interest expense, net | $ | 108 | $ | 151 | $ | 149 | |||||||||
Interest expense | 97 | 90 | ||||||||||||||||||||
Interest income includes interest earned on the Company’s cash, cash equivalents and investments, the net realized and unrealized gain or loss on trading securities, ineffectiveness on interest rate derivative instruments, and the net realized gain or loss on the sale or impairment of available-for-sale debt securities. See Note 5 for further discussion of these items. | ||||||||||||||||||||||
Interest expense, net | $ | 5 | $ | 40 | ||||||||||||||||||
Interest expense includes the expense associated with the interest on the Company’s outstanding borrowings, including short- and long-term instruments, ineffectiveness on interest rate derivative instruments, amortization of terminated interest rate swap agreements, and the amortization of debt issuance costs and debt discounts. | ||||||||||||||||||||||
Interest income includes interest earned on Medtronic’s cash, cash equivalents, and investments, the net realized and unrealized gain or loss on trading securities, ineffectiveness on interest rate derivative instruments, and the net realized gain or loss on the sale or impairment of available-for-sale debt securities. | ||||||||||||||||||||||
Interest expense includes the expense associated with the interest on Medtronic’s outstanding borrowings, including short- and long-term instruments, ineffectiveness on interest rate derivative instruments, amortization of terminated interest rate swap agreements, and the amortization of debt issuance costs and debt discounts. |
Income_Taxes
Income Taxes | 3 Months Ended | 12 Months Ended | ||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ' | ||||||||||||
Income Taxes | ' | ' | ||||||||||||
13. Income Taxes | ||||||||||||||
Note 14 – Income Taxes | The provision for income taxes is based on earnings before income taxes reported for financial statement purposes. The components of earnings from continuing operations before income taxes, based on tax jurisdiction, are as follows: | |||||||||||||
Medtronic’s effective tax rates for the three months ended July 25, 2014 and July 26, 2013 were 19.6 percent and 17.3 percent, respectively. The increase in Medtronic’s effective tax rate for the three months ended July 25, 2014 was primarily due to the tax impact of special charges, restructuring charges, net, acquisition-related items, and the expiration of the U.S. federal research and development tax credit on December 31, 2013, partially offset by the benefit from year-over-year changes in operational results by jurisdiction. | ||||||||||||||
Fiscal Year | ||||||||||||||
During the three months ended July 25, 2014, Medtronic’s gross unrecognized tax benefits increased from $1.172 billion to $1.234 billion. In addition, Medtronic has accrued gross interest and penalties of $157 million as of July 25, 2014. If all of Medtronic’s unrecognized tax benefits were recognized, approximately $1.138 billion would impact Medtronic’s effective tax rate. Medtronic has recorded the gross unrecognized tax benefits as a long-termliability, as it does not expect significant payments to occur or the total amount of unrecognized tax benefits to change significantly over the next 12 months. | (in millions) | 2014 | 2013 | 2012 | ||||||||||
U.S. | $ | 1,690 | $ | 1,806 | $ | 1,620 | ||||||||
Medtronic will continue to recognize interest and penalties related to income tax matters in the provision for income taxes in the condensed consolidated statements of earnings and record the liability in current or long-term accrued income taxes in the condensed consolidated balance sheets, as appropriate. | International | 2,015 | 2,445 | 2,525 | ||||||||||
As of July 25, 2014, there were no changes to significant unresolved matters with the U.S. Internal Revenue Service or foreign tax authorities from what Medtronic disclosed elsewhere in this joint proxy statement/prospectus. | Earnings from continuing operations before income taxes | $ | 3,705 | $ | 4,251 | $ | 4,145 | |||||||
The provision for income taxes from continuing operations consists of the following: | ||||||||||||||
Fiscal Year | ||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||
Current tax expense: | ||||||||||||||
U.S. | $ | 532 | $ | 509 | $ | 664 | ||||||||
International | 248 | 219 | 231 | |||||||||||
Total current tax expense | 780 | 728 | 895 | |||||||||||
Deferred tax expense (benefit): | ||||||||||||||
U.S. | (175 | ) | 46 | (138 | ) | |||||||||
International | 35 | 10 | (27 | ) | ||||||||||
Net deferred tax expense (benefit) | (140 | ) | 56 | (165 | ) | |||||||||
Total provision for income taxes | $ | 640 | $ | 784 | $ | 730 | ||||||||
Deferred taxes arise because of the different treatment of transactions for financial statement accounting and income tax accounting, known as “temporary differences.” The Company records the tax effect of these temporary differences as “deferred tax assets” and “deferred tax liabilities.” Deferred tax assets generally represent items that can be used as a tax deduction or credit in a tax return in future years for which the Company has already recorded the tax benefit in the consolidated statements of earnings. The Company establishes valuation allowances for deferred tax assets when the amount of expected future taxable income is not likely to support the use of the deduction or credit. The Company has established valuation allowances for federal, state, and foreign net operating losses, credit carryforwards, capital loss carryforwards, and deferred tax assets which are capital in nature of $397 million and $313 million at April 25, 2014 and April 26, 2013, respectively. These carryover attributes expire at various points in time, from within a year to no expiration date. These valuation allowances would result in a reduction to the provision for income taxes in the consolidated statements of earnings, if they are ultimately not required. Deferred tax liabilities generally represent tax expense recognized in the consolidated financial statements for which payment has been deferred or expense has already been taken as a deduction on the Company’s tax return but has not yet been recognized as an expense in the consolidated statements of earnings. Tax assets (liabilities), shown before jurisdictional netting of deferred tax assets (liabilities), are comprised of the following: | ||||||||||||||
(in millions) | April 25, 2014 | April 26, 2013 | ||||||||||||
Deferred tax assets: | ||||||||||||||
Net operating loss, capital loss, and credit carryforwards | $ | 487 | $ | 423 | ||||||||||
Other accrued liabilities | 205 | 140 | ||||||||||||
Accrued compensation | 201 | 98 | ||||||||||||
Pension and post-retirement benefits | 194 | 239 | ||||||||||||
Stock-based compensation | 171 | 223 | ||||||||||||
Other | 142 | 200 | ||||||||||||
Inventory | 118 | 121 | ||||||||||||
Federal and state benefit on uncertain tax positions | 79 | 57 | ||||||||||||
Unrealized loss on available-for-sale securities and derivative financial instruments | 29 | — | ||||||||||||
Gross deferred tax assets | 1,626 | 1,501 | ||||||||||||
Valuation allowance | (397 | ) | (313 | ) | ||||||||||
Total deferred tax assets | 1,229 | 1,188 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||
Intangible assets | (652 | ) | (712 | ) | ||||||||||
Basis impairment | (225 | ) | (214 | ) | ||||||||||
Realized loss on derivative financial instruments | (110 | ) | (110 | ) | ||||||||||
Other | (24 | ) | (29 | ) | ||||||||||
Accumulated depreciation | (20 | ) | (56 | ) | ||||||||||
Unrealized gain on available-for-sale securities and derivative financial instruments | — | (87 | ) | |||||||||||
Total deferred tax liabilities | (1,031 | ) | (1,208 | ) | ||||||||||
Prepaid income taxes | 320 | 321 | ||||||||||||
Income tax receivables | 113 | 114 | ||||||||||||
Tax assets, net | $ | 631 | $ | 415 | ||||||||||
Reported as (after valuation allowance and jurisdictional netting): | ||||||||||||||
Tax assets | $ | 736 | $ | 539 | ||||||||||
Long-term tax assets | 300 | 232 | ||||||||||||
Deferred tax liabilities | (19 | ) | (16 | ) | ||||||||||
Long-term deferred tax liabilities | (386 | ) | (340 | ) | ||||||||||
Tax assets, net | $ | 631 | $ | 415 | ||||||||||
The Company’s effective income tax rate from continuing operations varied from the U.S. federal statutory tax rate as follows: | ||||||||||||||
Fiscal Year | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
U.S. federal statutory tax rate | 35 | % | 35 | % | 35 | % | ||||||||
Increase (decrease) in tax rate resulting from: | ||||||||||||||
U.S. state taxes, net of federal tax benefit | 0.6 | 0.5 | 0.9 | |||||||||||
Research and development credit | (0.5 | ) | (1.1 | ) | (0.6 | ) | ||||||||
Domestic production activities | (0.4 | ) | (0.3 | ) | (0.5 | ) | ||||||||
International | (17.7 | ) | (16.7 | ) | (16.9 | ) | ||||||||
Puerto Rico Excise Tax | (1.6 | ) | (1.3 | ) | (1.4 | ) | ||||||||
Impact of restructuring charges, net, certain litigation charges, net, and acquisition-related items | 5.6 | 2 | 0.3 | |||||||||||
Reversal of excess tax accruals | (1.9 | ) | — | (0.8 | ) | |||||||||
Valuation allowance release | — | (0.2 | ) | (0.8 | ) | |||||||||
Other, net | (1.8 | ) | 0.5 | 2.4 | ||||||||||
Effective tax rate | 17.3 | % | 18.4 | % | 17.6 | % | ||||||||
In fiscal year 2014, the Company recorded a $71 million net tax benefit associated with the reversal of excess tax accruals. This net tax benefit included $63 million related to the settlement of certain issues reached with the U.S. Internal Revenue Service (IRS) involving the review of the Company’s fiscal years 2009 through 2011 domestic income tax returns and the remaining amount related to the resolution of various state and foreign audit proceedings covering multiple years and issues. The $71 million net tax benefit was recorded in the provision for income taxes in the consolidated statement of earnings for fiscal year 2014. | ||||||||||||||
In fiscal year 2012, the Company entered into a sale-leaseback agreement that was recorded as a capital lease and as a result of the transaction, the Company recorded a $33 million tax benefit associated with the release of a valuation allowance associated with the usage of a capital loss carryover. The $33 million tax benefit was recorded in the provision for income taxes in the consolidated statement of earnings for fiscal year 2012. | ||||||||||||||
The Company has not provided U.S. income taxes on approximately $20.529 billion, $18.123 billion, and $16.033 billion of undistributed earnings, net, from non-U.S. subsidiaries as of April 25, 2014, April 26, 2013, and April 27, 2012, respectively. These earnings are indefinitely reinvested outside the U.S. and are available for use by the Company’s non-U.S. operations. The Company continues to be focused on goals to grow its business through increased globalization of the Company. Determination of the amount of unrecognized deferred tax liability on these undistributed earnings is not practicable. | ||||||||||||||
Currently, the Company’s operations in Puerto Rico, Switzerland, and Singapore have various tax incentive grants. The tax reductions as compared to the local statutory rate favorably impacted earnings per diluted share by $0.42 in fiscal year 2014, $0.42 in fiscal year 2013, and $0.43 in fiscal year 2012. Unless these grants are extended, they will expire between fiscal years 2015 and 2027. The Company’s historical practice has been to renew, extend, or obtain new tax incentive grants upon expiration of existing tax incentive grants. If the Company is not able to renew, extend, or obtain new tax incentive grants, the expiration of existing tax incentive grants could have a material impact on the Company’s financial results in future periods. The expiration of a tax incentive grant in fiscal year 2015 is not expected to have a material impact on the provision for income taxes in the consolidated statements of earnings in future years. | ||||||||||||||
The Company had $1.172 billion, $1.068 billion, and $917 million of gross unrecognized tax benefits as of April 25, 2014, April 26, 2013, and April 27, 2012, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal years 2014, 2013, and 2012 is as follows: | ||||||||||||||
Fiscal Year | ||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||
Gross unrecognized tax benefits at beginning of fiscal year | $ | 1,068 | $ | 917 | $ | 769 | ||||||||
Gross increases: | ||||||||||||||
Prior year tax positions | 64 | 12 | 47 | |||||||||||
Current year tax positions | 166 | 169 | 171 | |||||||||||
Gross decreases: | ||||||||||||||
Prior year tax positions | (58 | ) | (21 | ) | (53 | ) | ||||||||
Settlements | (66 | ) | (6 | ) | (4 | ) | ||||||||
Statute of limitation lapses | (2 | ) | (3 | ) | (13 | ) | ||||||||
Gross unrecognized tax benefits at end of fiscal year | $ | 1,172 | $ | 1,068 | $ | 917 | ||||||||
If all of the Company’s unrecognized tax benefits as of April 25, 2014, April 26, 2013, and April 27, 2012 were recognized, $1.104 billion, $1.028 billion, and $858 million would impact the Company’s effective tax rate, respectively. Although the Company believes that it has adequately provided for liabilities resulting from tax assessments by taxing authorities, positions taken by these tax authorities could have a material impact on the Company’s effective tax rate in future periods. The Company has recorded the gross unrecognized tax benefits as a long-term liability, as it does not expect significant payments to occur or the total amount of unrecognized tax benefits to change significantly over the next 12 months. | ||||||||||||||
The Company recognizes interest and penalties related to income tax matters in the provision for income taxes in the consolidated statements of earnings and records the liability in the current or long-term accrued income taxes in the consolidated balance sheets, as appropriate. The Company had $141 million, $88 million, and $120 million of accrued gross interest and penalties as of April 25, 2014, April 26, 2013, and April 27, 2012, respectively. During the fiscal years ended April 25, 2014, April 26, 2013, and April 27, 2012, the Company recognized gross interest expense of approximately $36 million, $33 million, and $32 million in the provision for income taxes in the consolidated statements of earnings, respectively. | ||||||||||||||
Tax audits associated with the allocation of income, and other complex issues, may require an extended period of time to resolve and may result in income tax adjustments if changes to the Company’s allocation are required between jurisdictions with different tax rates. Tax authorities periodically review the Company’s tax returns and propose adjustments to the Company’s tax filings. The IRS has settled its audits with the Company for all years through fiscal year 2004. Tax years settled with the IRS may remain open for foreign tax audits and competent authority proceedings. Competent authority proceedings are a means to resolve intercompany pricing disagreements between countries. The major foreign jurisdictions where the Company conducts business have generally concluded all material tax matters through fiscal year 2004. In addition, substantially all material state and local tax matters have been concluded through fiscal year 2004. | ||||||||||||||
In March 2009, the IRS issued its audit report for fiscal years 2005 and 2006. The Company reached agreement with the IRS on some, but not all matters related to these fiscal years. On December 23, 2010, the IRS issued a statutory notice of deficiency with respect to the remaining issues. The Company filed a Petition with the U.S. Tax Court on March 21, 2011 objecting to the deficiency. During October and November 2012, the Company reached resolution with the IRS on various matters, including the deductibility of a settlement payment. The remaining unresolved issues relate to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico, which is one of the Company’s key manufacturing sites. | ||||||||||||||
In October 2011, the IRS issued its audit report for fiscal years 2007 and 2008. The Company reached agreement with the IRS on some but not all matters related to these fiscal years. The significant issues that remain unresolved relate to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico, and proposed adjustments associated with the tax effects of the Company’s acquisition of Kyphon Inc. (Kyphon). Associated with the Kyphon acquisition, Medtronic entered into an intercompany transaction whereby the Kyphon U.S. tangible assets were sold to another wholly-owned Medtronic subsidiary in a taxable transaction. The IRS has disagreed with the Company’s valuation of these assets and proposed that all U.S. goodwill, the value of the ongoing business, and the value of the workforce in place related to the Kyphon acquisition be included in the tangible asset sale. The Company disagrees that these items were sold, as well as with the IRS valuation of these items. The IRS continues to evaluate the overall transaction that Medtronic entered into and because a foreign subsidiary acquired part of Kyphon directly from the Kyphon shareholders, the IRS has argued that a deemed taxable event occurred. The Company disagrees with the IRS and is currently attempting to resolve these matters at the IRS Appellate level and will proceed through litigation, if necessary. | ||||||||||||||
In April 2014, the IRS issued its audit report for fiscal years 2009, 2010, and 2011. The Company reached agreement with the IRS on some but not all matters related to these fiscal years. The significant issues that remain unresolved relate to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico, and proposed adjustments associated with the tax effects of its acquisition structures for Ardian, CoreValve, Inc., and Ablation Frontiers, Inc. The IRS’s positions are similar to those presented in the Kyphon proposed adjustments. The Company disagrees with the IRS and will attempt to resolve these matters at the IRS Appellate level, however, it will proceed through litigation, if necessary. | ||||||||||||||
The Company’s reserves for uncertain tax positions relate to unresolved matters with the IRS and other taxing authorities. These reserves are subject to a high degree of estimation and management judgment. Resolution of these significant unresolved matters, or positions taken by the IRS or foreign tax authorities during future tax audits, could have a material impact on the Company’s financial results in future periods. The Company continues to believe that its reserves for uncertain tax positions are appropriate and that it has meritorious defenses for its tax filings and will vigorously defend them during the audit process, appellate process, and through litigation in courts, as necessary. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Jul. 25, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share | ' | ||||||||
Note 15 – Earnings Per Share | |||||||||
Basic earnings per share is computed based on the weighted average number of common shares outstanding. Diluted earnings per share is computed based on the weighted average number of common shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued, and reduced by the number of shares Medtronic could have repurchased from the proceeds from issuance of the potentially dilutive shares. Potentially dilutive shares of common stock include stock options and other stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. | |||||||||
The table below sets forth the computation of basic and diluted earnings per share: | |||||||||
Three months ended | |||||||||
(in millions, except per share data) | July 25, | July 26, | |||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net earnings | $ | 871 | $ | 953 | |||||
Denominator: | |||||||||
Basic – weighted average shares outstanding | 992.6 | 1,009.70 | |||||||
Effect of dilutive securities: | |||||||||
Employee stock options | 7.5 | 6.6 | |||||||
Employee restricted stock units | 5 | 4.8 | |||||||
Other | 0.1 | 0.1 | |||||||
Diluted – weighted average shares outstanding | 1,005.20 | 1,021.20 | |||||||
Basic earnings per share: | $ | 0.88 | $ | 0.94 | |||||
Diluted earnings per share: | $ | 0.87 | $ | 0.93 | |||||
The calculation of weighted average diluted shares outstanding excludes options for approximately 9 million shares of common stock for the three months ended July 26, 2013, respectively, because their effect would be anti-dilutive on Medtronic’s earnings per share. For the three months ended July 25, 2014, there were no options that would have an anti-dilutive effect on Medtronic’s earnings per share. |
Stock_Purchase_and_Award_Plans
Stock Purchase and Award Plans | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||
Stock Purchase and Award Plans | ' | ' | ||||||||||||||||||||||||||||||||
12. Stock Purchase and Award Plans | ||||||||||||||||||||||||||||||||||
Note 16 – Stock-Based Compensation | The Company measures stock-based compensation expense at the grant date based on the fair value of the award and recognizes the compensation expense over the requisite service period, which is generally the vesting period. | |||||||||||||||||||||||||||||||||
In fiscal year 2014, the Company granted stock awards under the Medtronic, Inc. 2013 Stock Award and Incentive Plan (2013 Plan) and the Medtronic, Inc. 2008 Stock Award and Incentive Plan (2008 Plan). The 2013 Plan was approved by the Company’s shareholders in August 2013. The 2008 Plan was approved by the Company’s shareholders in August 2008 and amended by shareholders in August 2009. The 2013 and 2008 Plans provide for the grant of non-qualified and incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, and other stock and cash-based awards. Upon adoption of the 2013 Plan, the Company no longer grants awards from any prior plan. As of April 25, 2014, there were approximately 70 million shares available for future grants under the 2013 Plan. | ||||||||||||||||||||||||||||||||||
Under the fair value recognition provisions of U.S. GAAP for accounting for stock-based compensation, Medtronic measures stock-based compensation expense at the grant date based on the fair value of the award and recognizes the compensation expense over the requisite service period, which is generally the vesting period. | Stock Options Stock option awards are granted at the exercise price equal to the closing price of the Company’s common stock on the grant date. The majority of the Company’s stock option awards are non-qualified stock options with a 10-year life and a 4-year ratable vesting term. In fiscal year 2014, the Company granted stock options under the 2013 Plan and the 2008 Plan. | |||||||||||||||||||||||||||||||||
Restricted Stock Awards Restricted stock and restricted stock units (collectively referred to as restricted stock awards) are granted to officers and key employees. Restricted stock awards are subject to forfeiture if employment terminates prior to the lapse of the restrictions. The Company grants restricted stock awards that typically cliff vest after four years. Restricted stock awards are expensed over the vesting period. The Company also grants shares of performance-based restricted stock awards that typically cliff vest after three years only if the Company has also achieved certain performance objectives. Performance awards are expensed over the performance period based on the probability of achieving the performance objectives. Shares of restricted stock are considered issued and outstanding shares of the Company at the grant date and have the same dividend and voting rights as other shares of common stock. Restricted stock units are not considered issued or outstanding common stock of the Company. Dividend equivalent units are accumulated on restricted stock units during the vesting period. In fiscal year 2014, the Company granted restricted stock units under the 2013 Plan and the 2008 Plan. As of April 25, 2014, all restricted stock awards outstanding were restricted stock units. | ||||||||||||||||||||||||||||||||||
The following table presents the components and classification of stock-based compensation expense recognized for the three months ended July 25, 2014 and July 26, 2013: | ||||||||||||||||||||||||||||||||||
Employees Stock Purchase Plan The Medtronic, Inc. 2005 Employees Stock Purchase Plan (ESPP) allows participating employees to purchase shares of the Company’s common stock at a discount through payroll deductions. Employees can contribute up to the lesser of 10 percent of their wages or the statutory limit under the U.S. Internal Revenue Code toward the purchase of the Company’s common stock at 85 percent of its market value at the end of the calendar quarter purchase period. Employees purchased 2 million shares at an average price of $47.32 per share in the fiscal year ended April 25, 2014. As of April 25, 2014, plan participants have had approximately $6 million withheld to purchase Company common stock at 85 percent of its market value on June 30, 2014, the last trading day before the end of the calendar quarter purchase period. At April 25, 2014, approximately 6 million shares of common stock were available for future purchase under the ESPP. | ||||||||||||||||||||||||||||||||||
Valuation Assumptions The Company uses the Black-Scholes option pricing model (Black-Scholes model) to determine the fair value of stock options as of the grant date. The fair value of stock options under the Black-Scholes model requires management to make assumptions regarding projected employee stock option exercise behaviors, risk-free interest rates, volatility of the Company’s stock price, and expected dividends. | ||||||||||||||||||||||||||||||||||
The expense recognized for shares purchased under the Company’s ESPP is equal to the 15 percent discount the employee receives at the end of the calendar quarter purchase period. The expense recognized for restricted stock awards is equal to the grant date fair value, which is equal to the closing stock price on the date of grant. | ||||||||||||||||||||||||||||||||||
Three months ended | The following table provides the weighted average fair value of options granted to employees and the related assumptions used in the Black-Scholes model: | |||||||||||||||||||||||||||||||||
(in millions) | July 25, | July 26, | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||
Stock options | $ | 6 | $ | 8 | Fiscal Year | |||||||||||||||||||||||||||||
Restricted stock awards | 23 | 19 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Employee stock purchase plan | 5 | 4 | Weighted average fair value of options granted | $ | 12 | $ | 7.42 | $ | 6.88 | |||||||||||||||||||||||||
Assumptions used: | ||||||||||||||||||||||||||||||||||
Total stock-based compensation expense | $ | 34 | $ | 31 | Expected life (years)(a) | 6.4 | 6.5 | 6.4 | ||||||||||||||||||||||||||
Risk-free interest rate(b) | 1.88 | % | 0.94 | % | 1.82 | % | ||||||||||||||||||||||||||||
Cost of products sold | $ | 4 | $ | 3 | Volatility(c) | 25.2 | % | 26.22 | % | 25.97 | % | |||||||||||||||||||||||
Research and development expense | 6 | 6 | Dividend yield(d) | 2.02 | % | 2.64 | % | 2.78 | % | |||||||||||||||||||||||||
Selling, general, and administrative expense | 24 | 22 | ||||||||||||||||||||||||||||||||
(a) | Expected life: The Company analyzes historical employee stock option exercise and termination data to estimate the expected life assumption. The Company calculates the expected life assumption using the midpoint scenario, which combines historical exercise data with hypothetical exercise data, as the Company believes this data currently represents the best estimate of the expected life of a new employee option. The Company also stratifies its employee population into two groups based upon distinctive exercise behavior patterns. | |||||||||||||||||||||||||||||||||
Total stock-based compensation expense | $ | 34 | $ | 31 | (b) | Risk-free interest rate: The rate is based on the grant date yield of a zero-coupon U.S. Treasury bond whose maturity period equals the expected term of the option. | ||||||||||||||||||||||||||||
(c) | Volatility: Expected volatility is based on a blend of historical volatility and an implied volatility of the Company’s common stock. Implied volatility is based on market traded options of the Company’s common stock. | |||||||||||||||||||||||||||||||||
Income tax benefits | (9 | ) | (8 | ) | (d) | Dividend yield: The dividend yield rate is calculated by dividing the Company’s annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date. | ||||||||||||||||||||||||||||
Stock-Based Compensation Expense Under the fair value recognition provisions of U.S. GAAP for accounting for stock-based compensation, the Company measures stock-based compensation expense at the grant date based on the fair value of the award and recognizes the compensation expense over the requisite service period, which is generally the vesting period. | ||||||||||||||||||||||||||||||||||
Total stock-based compensation expense, net of tax | $ | 25 | $ | 23 | ||||||||||||||||||||||||||||||
The amount of stock-based compensation expense recognized during a period is based on the portion of the awards that are ultimately expected to vest. The Company estimates pre-vesting forfeitures at the time of grant by analyzing historical data and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. Ultimately, the total expense recognized over the vesting period will equal the fair value of awards that actually vest. | ||||||||||||||||||||||||||||||||||
The following table presents the components and classification of stock-based compensation expense, for stock options, restricted stock awards, and ESPP shares recognized for fiscal years 2014, 2013, and 2012: | ||||||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Stock options | $ | 34 | $ | 44 | $ | 60 | ||||||||||||||||||||||||||||
Restricted stock awards | 98 | 96 | 86 | |||||||||||||||||||||||||||||||
Employees stock purchase plan | 13 | 12 | 13 | |||||||||||||||||||||||||||||||
Physio-Control award acceleration | — | — | 2 | |||||||||||||||||||||||||||||||
Total stock-based compensation expense | $ | 145 | $ | 152 | $ | 161 | ||||||||||||||||||||||||||||
Cost of products sold | $ | 14 | $ | 12 | $ | 12 | ||||||||||||||||||||||||||||
Research and development expense | 27 | 31 | 29 | |||||||||||||||||||||||||||||||
Selling, general, and administrative expense | 104 | 109 | 118 | |||||||||||||||||||||||||||||||
Physio-Control divestiture-related costs | — | — | 2 | |||||||||||||||||||||||||||||||
Total stock-based compensation expense | 145 | 152 | 161 | |||||||||||||||||||||||||||||||
Income tax benefits | (40 | ) | (43 | ) | (45 | ) | ||||||||||||||||||||||||||||
Total stock-based compensation expense, net of tax | $ | 105 | $ | 109 | $ | 116 | ||||||||||||||||||||||||||||
Stock Options The following table summarizes all stock option activity, including activity from options assumed or issued as a result of acquisitions, during fiscal years 2014, 2013, and 2012: | ||||||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Options (in | Wtd. Avg. | Options (in | Wtd. Avg. | Options (in | Wtd. Avg. | |||||||||||||||||||||||||||||
thousands) | Exercise | thousands) | Exercise | thousands) | Exercise | |||||||||||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||||||||||||||
Beginning balance | 62,020 | $ | 44.98 | 74,590 | $ | 44.80 | 84,652 | $ | 45.23 | |||||||||||||||||||||||||
Granted | 2,983 | 55.36 | 4,437 | 39.54 | 4,634 | 34.93 | ||||||||||||||||||||||||||||
Exercised | (27,527 | ) | 46.26 | (6,096 | ) | 37.73 | (1,218 | ) | 34.95 | |||||||||||||||||||||||||
Canceled | (1,899 | ) | 46.44 | (10,911 | ) | 45.57 | (13,478 | ) | 44.98 | |||||||||||||||||||||||||
Outstanding at year-end | 35,577 | $ | 44.78 | 62,020 | $ | 44.98 | 74,590 | $ | 44.8 | |||||||||||||||||||||||||
Exercisable at year-end | 26,997 | $ | 45.22 | 50,908 | $ | 46.65 | 60,833 | $ | 46.73 | |||||||||||||||||||||||||
For options outstanding and exercisable at April 25, 2014, the weighted average remaining contractual life was 4.53 years and 3.39 years, respectively. The total intrinsic value, calculated as the closing stock price at year-end less the option exercise price, of options exercised during fiscal years 2014, 2013, and 2012 was $249 million, $39 million, and $5 million, respectively. For options outstanding and exercisable at April 25, 2014, the total intrinsic value of in-the-money options was $477 million and $351 million, respectively. The Company issues new shares when stock option awards are exercised. Cash received from the exercise of stock options for the fiscal year ended April 25, 2014 was $1.273 billion. The Company’s tax benefit related to the exercise of stock options for fiscal year 2014 was $78 million. Unrecognized compensation expense related to outstanding stock options as of April 25, 2014 was $40 million and is expected to be recognized over a weighted average period of 2.5 years and will be adjusted for any future changes in estimated forfeitures. | ||||||||||||||||||||||||||||||||||
Restricted Stock Awards The following table summarizes restricted stock award activity during fiscal years 2014, 2013, and 2012: | ||||||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Awards (in | Wtd. Avg. | Awards (in | Wtd. Avg. | Awards (in | Wtd. Avg. | |||||||||||||||||||||||||||||
thousands) | Grant | thousands) | Grant | thousands) | Grant | |||||||||||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||||||||||||||
Nonvested, beginning balance | 10,058 | $ | 38.97 | 9,980 | $ | 37.8 | 9,207 | $ | 40.42 | |||||||||||||||||||||||||
Granted | 2,519 | 55.62 | 3,135 | 39.53 | 3,785 | 35.6 | ||||||||||||||||||||||||||||
Vested | (2,210 | ) | 35.76 | (2,445 | ) | 35.58 | (2,194 | ) | 44.74 | |||||||||||||||||||||||||
Forfeited | (809 | ) | 39.41 | (612 | ) | 36.34 | (818 | ) | 38.46 | |||||||||||||||||||||||||
Nonvested at year-end | 9,558 | $ | 44.06 | 10,058 | $ | 38.97 | 9,980 | $ | 37.80 | |||||||||||||||||||||||||
Unrecognized compensation expense related to restricted stock awards as of April 25, 2014 was $170 million and is expected to be recognized over a weighted average period of 3.4 years and will be adjusted for any future changes in estimated forfeitures. |
Retirement_Benefit_Plans
Retirement Benefit Plans | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefit Plans | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14. Retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 17 – Retirement Benefit Plans | The Company sponsors various retirement benefit plans, including defined benefit pension plans (pension benefits), post-retirement medical plans (post-retirement benefits), defined contribution savings plans, and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. The expense related to these plans was $419 million, $419 million, and $319 million in fiscal years 2014, 2013, and 2012, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In the U.S., the Company maintains a qualified pension plan designed to provide guaranteed minimum retirement benefits to all eligible U.S. employees. Pension coverage for non-U.S. employees is provided, to the extent deemed appropriate, through separate plans. In addition, U.S. and Puerto Rico employees are also eligible to receive specified Company paid health care and life insurance benefits through the Company’s post-retirement benefits. In addition to the benefits provided under the qualified pension plan, retirement benefits associated with wages in excess of the IRS allowable limits are provided to certain employees under a non-qualified plan. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Medtronic sponsors various retirement benefit plans, including defined benefit pension plans (pension benefits), post-retirement medical plans (post-retirement benefits), defined contribution savings plans, and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. The net periodic benefit cost of the plans includes the following components for the three months ended July 25, 2014 and July 26, 2013: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of April 25, 2014 and April 26, 2013, the net underfunded status of the Company’s benefit plans was $488 million and $584 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The change in benefit obligation and funded status of the Company’s employee retirement plans are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension | Post-Retirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits | U.S. Pension Benefits | Non-U.S. Pension | Post-Retirement Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Three months ended | Three months ended | Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | July 25, | July 26, | July 25, | July 26, | July 25, | July 26, | Fiscal Year | Fiscal Year | Fiscal Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | (in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 26 | $ | 27 | $ | 15 | $ | 14 | $ | 5 | $ | 5 | Accumulated benefit obligation at end of year: | $ | 1,996 | $ | 1,924 | $ | 871 | $ | 689 | $ | 327 | $ | 302 | |||||||||||||||||||||||||||||||||||||
Interest cost | 26 | 24 | 8 | 7 | 4 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (39 | ) | (35 | ) | (10 | ) | (9 | ) | (6 | ) | (5 | ) | Change in projected benefit obligation: | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | 16 | 21 | 3 | 2 | — | — | Projected benefit obligation at beginning of year | $ | 2,154 | $ | 1,877 | $ | 811 | $ | 717 | $ | 302 | $ | 339 | |||||||||||||||||||||||||||||||||||||||||||
Service cost | 107 | 104 | 54 | 43 | 19 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 29 | $ | 37 | $ | 16 | $ | 14 | $ | 3 | $ | 3 | Interest cost | 97 | 94 | 29 | 27 | 14 | 15 | |||||||||||||||||||||||||||||||||||||||||||
Employee contributions | — | — | 16 | 15 | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan amendments | — | — | — | (8 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan curtailments | — | — | (2 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial (gain) loss | (104 | ) | 151 | 88 | 65 | 1 | (62 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (51 | ) | (72 | ) | (27 | ) | (25 | ) | (19 | ) | (19 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Medicare Part D reimbursements | — | — | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | — | — | 62 | (23 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation at end of year | $ | 2,203 | $ | 2,154 | $ | 1,031 | $ | 811 | $ | 327 | $ | 302 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 1,717 | $ | 1,470 | $ | 733 | $ | 638 | $ | 233 | $ | 204 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 163 | 129 | 61 | 69 | 24 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employer contributions | 88 | 190 | 48 | 49 | 20 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee contributions | — | — | 16 | 15 | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (51 | ) | (72 | ) | (27 | ) | (25 | ) | (19 | ) | (19 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | — | — | 58 | (13 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 1,917 | $ | 1,717 | $ | 889 | $ | 733 | $ | 267 | $ | 233 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Funded status at end of year: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 1,917 | $ | 1,717 | $ | 889 | $ | 733 | $ | 267 | $ | 233 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligations | 2,203 | 2,154 | 1,031 | 811 | 327 | 302 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underfunded status of the plans | $ | (286 | ) | $ | (437 | ) | $ | (142 | ) | $ | (78 | ) | $ | (60 | ) | $ | (69 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Recognized liability | $ | (286 | ) | $ | (437 | ) | $ | (142 | ) | $ | (78 | ) | $ | (60 | ) | $ | (69 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Amounts recognized on the consolidated balance sheets consist of: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-current assets | $ | — | $ | — | $ | 17 | $ | 19 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Current liabilities | (10 | ) | (9 | ) | (4 | ) | (4 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-current liabilities | (276 | ) | (428 | ) | (155 | ) | (93 | ) | (59 | ) | (68 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized liability | $ | (286 | ) | $ | (437 | ) | $ | (142 | ) | $ | (78 | ) | $ | (60 | ) | $ | (69 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive (loss) income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prior service cost (benefit) | $ | 4 | $ | 5 | $ | (2 | ) | $ | (1 | ) | $ | (3 | ) | $ | (3 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss | 837 | 1,048 | 254 | 190 | 39 | 43 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 841 | $ | 1,053 | $ | 252 | $ | 189 | $ | 36 | $ | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||||
In certain countries outside the U.S., fully funding pension plans is not a common practice, as funding provides no income tax benefit. Consequently, certain pension plans were partially funded as of April 25, 2014 and April 26, 2013. U.S. and non-U.S. plans with accumulated benefit obligations in excess of plan assets consist of the following: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 2,426 | $ | 2,003 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation | 2,703 | 2,243 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan assets at fair value | 2,268 | 1,740 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plans with projected benefit obligations in excess of plan assets consist of the following: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 2,864 | $ | 2,637 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan assets at fair value | 2,419 | 2,104 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The net periodic benefit cost of the plans include the following components: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension Benefits | Post-Retirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 107 | $ | 104 | $ | 92 | $ | 54 | $ | 43 | $ | 42 | $ | 19 | $ | 19 | $ | 19 | ||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 97 | 94 | 87 | 29 | 27 | 29 | 14 | 15 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (141 | ) | (128 | ) | (121 | ) | (35 | ) | (33 | ) | (36 | ) | (19 | ) | (17 | ) | (16 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service cost (credit) | 1 | (1 | ) | (1 | ) | 1 | 1 | 1 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | 85 | 71 | 45 | 11 | 8 | 4 | 1 | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 149 | $ | 140 | $ | 102 | $ | 60 | $ | 46 | $ | 40 | $ | 15 | $ | 20 | $ | 23 | ||||||||||||||||||||||||||||||||||||||||||||
The other changes in plan assets and projected benefit obligations recognized in accumulated other comprehensive loss for fiscal year 2014 are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | U.S. Pension | Non-U.S. | Post- | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits | Pension | Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | $ | (126 | ) | $ | 61 | $ | (3 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service cost | (1 | ) | (1 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial gain | (85 | ) | (11 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of exchange rates | — | 14 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total recognized in accumulated other comprehensive loss | $ | (212 | ) | $ | 63 | $ | (4 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total recognized in net periodic benefit cost and accumulated other comprehensive loss | $ | (63 | ) | $ | 124 | $ | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost, before tax, in fiscal year 2015 are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | U.S. Pension | Non-U.S. | Post- | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits | Pension | Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | $ | 65 | $ | 13 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 65 | $ | 13 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The actuarial assumptions are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension Benefits | Post-Retirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average assumptions – projected benefit obligation: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.75% | 4.55% | 5.05% | 3.32% | 3.52% | 3.98% | 4.75% | 4.55% | 5.05% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Rate of compensation increase | 3.90% | 3.90% | 3.80% | 2.80% | 2.78% | 2.85% | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate pre-65 | N/A | N/A | N/A | N/A | N/A | N/A | 7.50% | 7.75% | 7.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate post-65 | N/A | N/A | N/A | N/A | N/A | N/A | 6.75% | 7.00% | 7.25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average assumptions – net periodic benefit cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.55% | 5.05% | 5.80% | 3.52% | 3.98% | 4.75% | 4.55% | 5.05% | 5.80% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | 8.25% | 8.25% | 8.25% | 4.76% | 5.19% | 5.82% | 8.25% | 8.25% | 8.25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Rate of compensation increase | 3.90% | 3.80% | 3.80% | 2.78% | 2.85% | 2.97% | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate pre-65 | N/A | N/A | N/A | N/A | N/A | N/A | 7.75% | 7.50% | 7.75% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate post-65 | N/A | N/A | N/A | N/A | N/A | N/A | 7.00% | 7.25% | 7.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s discount rates are determined by considering current yield curves representing high quality, long-term fixed income instruments. The resulting discount rates are consistent with the duration of plan liabilities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The expected long-term rate of return on plan assets assumptions are determined using a building block approach, considering historical averages and real returns of each asset class. In certain countries, where historical returns are not meaningful, consideration is given to local market expectations of long-term returns. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefit Plan Investment Strategy The Company has an account that holds the assets for both the U.S. pension plan and other U.S. post-retirement benefits, primarily retiree medical benefits. For investment purposes, the plans are managed in an identical way, as their objectives are similar. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company has a Qualified Plan Committee (the Plan Committee) that sets investment guidelines for U.S. pension plan and other U.S. post-retirement benefits with the assistance of an external consultant. These guidelines are established based on market conditions, risk tolerance, funding requirements, and expected benefit payments. The Plan Committee also oversees the investment allocation process, selects the investment managers, and monitors asset performance. As pension liabilities are long-term in nature, the Company employs a long-term total return approach to maximize the long-term rate of return on plan assets for a prudent level of risk. An annual analysis on the risk versus the return of the investment portfolio is conducted to justify the expected long-term rate of return assumption. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The investment portfolio contains a diversified portfolio of investment categories, including equities, fixed income securities, hedge funds, and private equity. Securities are also diversified in terms of domestic and international securities, short- and long-term securities, growth and value styles, large cap and small cap stocks, active and passive management, and derivative-based styles. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outside the U.S., pension plan assets are typically managed by decentralized fiduciary committees. There is significant variation in policy asset allocation from country to country. Local regulations, local funding rules, and local financial and tax considerations are part of the funding and investment allocation process in each country. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Plan did not hold any investments in the Company’s common stock as of April 25, 2014 or April 26, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s pension plan target allocations at April 25, 2014 and April 26, 2013, by asset category, are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Allocation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 50 | % | 50 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | 20 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 30 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Allocation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 41 | % | 40 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | 22 | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 37 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefit Plan Asset Fair Values The following is a description of the valuation methodologies used for retirement benefit plan assets measured at fair value. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments: Valued at the closing price reported in the active markets in which the individual security is traded. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities: Certain U.S. government securities are valued at the closing price reported in the active markets in which the individual security is traded. Other U.S. government securities are valued based on inputs other than quoted prices that are observable. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities: Valued based on inputs other than quoted prices that are observable. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock: Valued at the closing price reported in the active markets in which the individual security is traded. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Mutual Funds/Commingled Trusts: Valued based on the year-end net asset values of the investment vehicles. The net asset values of the investment vehicles are based on the fair values of the underlying investments of the partnerships valued at the closing price reported in the active markets in which the individual security is traded. Equity mutual funds have a daily reported net asset value and the Company classifies these investments as Level 2. Commingled trusts do not have a daily reported net asset value and the Company classifies these investments as Level 3. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Income Mutual Funds: Valued based on the year-end net asset values of the investment vehicles. The net asset values of the investment vehicles are based on the fair values of the underlying investments of the partnerships valued based on inputs other than quoted prices that are observable. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership Units: Valued based on the year-end net asset values of the underlying partnerships. The net asset values of the partnerships are based on the fair values of the underlying investments of the partnerships. Quoted market prices are used to value the underlying investments of the partnerships, where the partnerships consist of the investment pools which invest primarily in common stocks. Partnership units include partnerships, private equity investments, and real asset investments. Partnerships primarily include long/short equity and absolute return strategies. These investments can be redeemed monthly with notice periods ranging from 45 to 95 days. As of April 25, 2014, there are two absolute return strategy funds totaling $5 million that are in the process of liquidation. The Company expects to receive the majority of the proceeds over the next five years. Private equity investments consist of common stock and debt instruments of private companies. For private equity funds, the sum of the unfunded commitments as of April 25, 2014 is $64 million and the estimated liquidation period of these funds is expected to be one to 15 years. Real asset investments consist of commodities, derivatives, Real Estate Investment Trusts, and illiquid real estate holdings. These investments have redemption and liquidation periods ranging from 30 days to 10 years. If a quoted market price is not available for a partnership investment, other valuation procedures are utilized to arrive at fair value. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Registered Investment Companies: Valued at the quoted market prices of shares held by the plan at year-end in the active market on which the individual securities are traded. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Contracts: Comprised of investments in collective (group) insurance contracts, consisting of individual insurance policies. The policyholder is the employer and each member is the owner/beneficiary of their individual insurance policy. These policies are a part of the insurance company’s general portfolio and participate in the insurer’s profit-sharing policy on an excess yield basis. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The methods described above may produce fair values that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
There were no transfers between Level 1, Level 2, or Level 3 during fiscal years 2014, 2013, or 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide information by level for the retirement benefit plan assets that are measured at fair value, as defined by U.S. GAAP. See Note 6 for discussion of the fair value measurement terms of Levels 1, 2, and 3. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | April 25, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | $ | 157 | $ | 157 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | 158 | 108 | 50 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 60 | — | 59 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other common stock | 125 | 125 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity mutual funds/commingled trusts | 578 | — | 293 | 285 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income mutual funds | 166 | — | 166 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership units | 673 | — | — | 673 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,917 | $ | 390 | $ | 568 | $ | 959 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | April 26, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | $ | 195 | $ | 195 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | 172 | 145 | 27 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 62 | — | 61 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other common stock | 216 | 216 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity mutual funds/commingled trusts | 377 | — | 150 | 227 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income mutual funds | 72 | — | 72 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership units | 623 | — | — | 623 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,717 | $ | 556 | $ | 310 | $ | 851 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide a reconciliation of the beginning and ending balances of U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Corporate Debt | Commingled | Partnership Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Securities | Trusts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 851 | $ | 1 | $ | 227 | $ | 623 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized gains (losses) included in earnings | 23 | — | — | 23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unrealized gains (losses) included in accumulated other comprehensive loss | 86 | — | 58 | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales, net | (1 | ) | — | — | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 959 | $ | 1 | $ | 285 | $ | 673 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Corporate Debt | Commingled | Partnership Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Securities | Trusts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 27, 2012 | $ | 752 | $ | 1 | $ | 193 | $ | 558 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized gains (losses) included in earnings | 8 | — | — | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unrealized gains (losses) included in accumulated other comprehensive loss | 62 | — | 34 | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales, net | 29 | — | — | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 851 | $ | 1 | $ | 227 | $ | 623 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. Pension Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | April 25, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Registered investment companies | $ | 868 | $ | — | $ | 868 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts | 11 | — | — | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership units | 10 | — | — | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 889 | $ | — | $ | 868 | $ | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value as of | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
April 26, 2013 | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Registered investment companies | $ | 715 | $ | — | $ | 715 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts | 10 | — | — | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership units | 8 | — | — | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 733 | $ | — | $ | 715 | $ | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide a reconciliation of the beginning and ending balances of non-U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Insurance | Partnership | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Contracts | Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 18 | $ | 10 | $ | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unrealized gains (losses) included in accumulated other comprehensive loss | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales, net | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange | 1 | 1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 21 | $ | 11 | $ | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Insurance | Partnership | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Contracts | Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 27, 2012 | $ | 16 | $ | 9 | $ | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unrealized gains (losses) included in accumulated other comprehensive loss | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales, net | 1 | 1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 18 | $ | 10 | $ | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Post-Retirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | April 25, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | $ | 22 | $ | 22 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | 23 | 16 | 7 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 9 | — | 9 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other common stock | 18 | 18 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity mutual funds/commingled trusts | 83 | — | 42 | 41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income mutual funds | 24 | — | 24 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership units | 97 | — | — | 97 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 276 | $ | 56 | $ | 82 | $ | 138 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other items to reconcile to fair value of plan assets | (9 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 267 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | April 26, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | $ | 28 | $ | 28 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | 24 | 20 | 4 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 9 | — | 9 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other common stock | 31 | 31 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity mutual funds/commingled trusts | 53 | — | 21 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income mutual funds | 10 | — | 10 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership units | 88 | — | — | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 243 | $ | 79 | $ | 44 | $ | 120 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other items to reconcile to fair value of plan assets | (10 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 233 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide a reconciliation of the beginning and ending balances of post-retirement benefit assets measured at fair value that used significant unobservable inputs (Level 3): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Commingled | Partnership Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Trusts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 120 | $ | 32 | $ | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized gains (losses) included in earnings | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unrealized gains (losses) included in accumulated other comprehensive loss | 13 | 9 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales, net | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 138 | $ | 41 | $ | 97 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Commingled | Partnership Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Trusts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 27, 2012 | $ | 108 | $ | 28 | $ | 80 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized gains (losses) included in earnings | 5 | 4 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unrealized gains (losses) included in accumulated other comprehensive loss | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales, net | 3 | — | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 120 | $ | 32 | $ | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefit Plan Funding It is the Company’s policy to fund retirement costs within the limits of allowable tax deductions. During fiscal year 2014, the Company made discretionary contributions of approximately $88 million to the U.S. pension plan and approximately $20 million to fund post-retirement benefits. Internationally, the Company contributed approximately $48 million for pension benefits during fiscal year 2014. During fiscal year 2015, the Company anticipates that its contribution for pension benefits and post-retirement benefits will be less than those contributions made during fiscal year 2014. Based on the guidelines under the U.S. Employee Retirement Income Security Act of 1974 and the various guidelines which govern the plans outside the U.S., the majority of anticipated fiscal year 2015 contributions will be discretionary. The Company believes that, along with pension assets, the returns on invested pension assets, and Company contributions, the Company will be able to meet its pension and other post-retirement obligations in the future. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retiree benefit payments, which reflect expected future service, are anticipated to be paid as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | U.S. Pension | Non-U.S. | Post-Retirement Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits | Pension Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year | Gross | Gross | Gross | Gross Medicare | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | Payments | Payments | Part D Receipts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 59 | $ | 36 | $ | 12 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 69 | 30 | 14 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 78 | 31 | 16 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 88 | 33 | 18 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 98 | 32 | 20 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 – 2024 | 659 | 187 | 137 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,051 | $ | 349 | $ | 217 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In March 2010, President Obama signed into law the Patient Protection and Affordable Care Act (PPACA) and the Health Care and Education Affordability Reconciliation Act (Reconciliation Act). Included among the major provisions of these laws is a change in the tax treatment of the Medicare Part D subsidy. The subsidy came into existence with the enactment of the Medicare Modernization Act (MMA) in 2003 and is available to sponsors of retiree health benefit plans with a prescription drug benefit that is actuarially equivalent to the benefit provided by the Medicare Part D program. Prior to the enactment of the PPACA and the Reconciliation Act, the Company was allowed to deduct the full cost of its retiree drug plans without reduction for subsidies received. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Under U.S. GAAP, the Company records a liability on its balance sheet for the expected cost of earned future retiree health benefits. When the MMA was enacted in 2003, this liability was reduced to reflect expected future subsidies from the Medicare Part D program. In addition, the Company recorded a reduction to the deferred tax liability on the balance sheet for the value of future tax deductions for these retiree health benefits. Each year, as additional benefits are earned and benefit payments are made, the Company adjusts the post-retirement benefits liability and deferred tax liability. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
After the passage of the PPACA and the Reconciliation Act, the Company must reduce the tax deduction for retiree drug benefits paid by the amount of the Medicare Part D subsidy beginning in 2013. U.S. GAAP requires the impact of a change in tax law to be recognized immediately in the income statement in the period that includes the enactment date, regardless of the effective date of the change in tax law. As a result of this change in tax law, the Company recorded a non-cash charge of $15 million in fiscal year 2010 to increase the deferred tax liability. As a result of this legislation, the Company will be evaluating prospective changes to the active and retiree health care benefits offered by the Company. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s U.S. qualified defined benefit plans are funded in excess of 80 percent and, therefore, the Company expects that the plans will not be subject to the “at risk” funding requirements of the Pension Protection Act and that the law will not have a material impact on future contributions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The initial health care cost trend rates for post-retirement benefit plans was 7.50 percent for pre-65 and 6.75 percent for post-65 at April 25, 2014. Based on actuarial data, the trend rates are expected to decline to 5.0 percent over a five-year period. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | One-Percentage- | One-Percentage- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Point Increase | Point Decrease | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on post-retirement benefit cost | $ | 1 | $ | (1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on post-retirement benefit obligation | 11 | (9 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Contribution Savings Plans The Company has defined contribution savings plans that cover substantially all U.S. employees and certain non-U.S. employees. The general purpose of these plans is to provide additional financial security during retirement by providing employees with an incentive to make regular savings. Company contributions to the plans are based on employee contributions and Company performance and since fiscal year 2006, the entire match has been made in cash. Expense under these plans was $145 million, $163 million, and $106 million in fiscal years 2014, 2013, and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective May 1, 2005, the Company froze participation in the existing defined benefit pension plan in the U.S. and implemented two new plans including an additional defined benefit pension plan and a new defined contribution pension plan, respectively: the Personal Pension Account (PPA) and the Personal Investment Account (PIA). Employees in the U.S. hired on or after May 1, 2005 have the option to participate in either the PPA or the PIA. Participants in the PPA receive an annual allocation of their salary and bonus on which they will receive an annual guaranteed rate of return which is based on the ten-year Treasury bond rate. Participants in the PIA also receive an annual allocation of their salary and bonus; however, they are allowed to determine how to invest their funds among identified fund alternatives. The cost associated with the PPA is included in U.S. Pension Benefits in the tables presented earlier. The defined contribution cost associated with the PIA was approximately $50 million, $50 million, and $48 million in fiscal years 2014, 2013, and 2012, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ' | ||||||||||||||||||||||||||||||||||||||||
16. Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||||||||||
Note 18 – Accumulated Other Comprehensive Income (Loss) | In the first quarter of fiscal year 2014, the Company prospectively adopted guidance issued by the FASB that requires additional disclosure related to the impact of reclassification adjustments out of AOCI on net income. Changes in AOCI by component are as follows: | |||||||||||||||||||||||||||||||||||||||||
Changes in AOCI by component are as follows: | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | Unrealized | Cumulative | Net Change in | Unrealized | Total | |||||||||||||||||||||||||||||||||||||
Gain (Loss) on | Translation | Retirement | Gain (Loss) on | Accumulated | ||||||||||||||||||||||||||||||||||||||
Available-for- | Adjustments (a) | Obligations | Derivatives | Other | ||||||||||||||||||||||||||||||||||||||
(in millions) | Unrealized | Cumulative | Net Change | Unrealized | Total | Sale Securities | Comprehensive | |||||||||||||||||||||||||||||||||||
Gain (Loss) on | Translation | in | Gain (Loss) | Accumulated | Loss | |||||||||||||||||||||||||||||||||||||
Available-for- | Adjustments | Retirement | on | Other | Balance as of April 26, 2013, net of tax | $ | 97 | $ | 205 | $ | (852 | ) | $ | 58 | $ | (492 | ) | |||||||||||||||||||||||||
Sale Securities | (a) | Obligations | Derivatives | Comprehensive | Other comprehensive (loss) income before reclassifications, before tax | (89 | ) | 13 | 60 | (120 | ) | (136 | ) | |||||||||||||||||||||||||||||
(Loss) Income | Tax benefit (expense) | 32 | — | (37 | ) | 44 | 39 | |||||||||||||||||||||||||||||||||||
Balance as of April 25, 2014, net of tax | $ | (6 | ) | $ | 218 | $ | (765 | ) | $ | (44 | ) | $ | (597 | ) | ||||||||||||||||||||||||||||
Other comprehensive income before reclassifications, before tax | 107 | 1 | 4 | 55 | 167 | Other comprehensive (loss) income before reclassifications, net of tax | (57 | ) | 13 | 23 | (76 | ) | (97 | ) | ||||||||||||||||||||||||||||
Tax expense | (39 | ) | — | — | (19 | ) | (58 | ) | Reclassifications, before tax | (72 | ) | — | 99 | (42 | ) | (15 | ) | |||||||||||||||||||||||||
Tax benefit (expense) | 26 | — | (35 | ) | 16 | 7 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income before reclassifications, net of tax | 68 | 1 | 4 | 36 | 109 | |||||||||||||||||||||||||||||||||||||
Reclassifications, before tax | (21 | ) | — | 19 | 3 | 1 | Reclassifications, net of tax | (46 | )(b) | — | 64 | (c) | (26 | )(d) | (8 | ) | ||||||||||||||||||||||||||
Tax benefit (expense) | 7 | — | (6 | ) | (2 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (103 | ) | 13 | 87 | (102 | ) | (105 | ) | ||||||||||||||||||||||||||||||||||
Reclassifications, net of tax | (14 | )(b) | — | 13 | (c) | 1 | (d) | — | ||||||||||||||||||||||||||||||||||
Balance as of April 25, 2014, net of tax | $ | (6 | ) | $ | 218 | $ | (765 | ) | $ | (44 | ) | $ | (597 | ) | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 54 | 1 | 17 | 37 | 109 | |||||||||||||||||||||||||||||||||||||
Balance as of July 25, 2014, net of tax | $ | 48 | $ | 219 | $ | (748 | ) | $ | (7 | ) | $ | (488 | ) | (a) | Taxes are not provided on CTA as substantially all translation adjustments relate to earnings that are intended to be indefinitely reinvested outside the U.S. | |||||||||||||||||||||||||||
(b) | Represents net realized gains on sales of available-for-sale securities that were reclassified from AOCI to other expense, net (see Note 5). | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Unrealized | Cumulative | Net Change | Unrealized | Total | (c) | Includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note 14). | |||||||||||||||||||||||||||||||||||
Gain (Loss) | Translation | in | Gain (Loss) | Accumulated | (d) | Relates to foreign currency cash flow hedges that were reclassified from AOCI to other expense, net or cost of products sold and forward starting interest rate derivative instruments that were reclassified from AOCI to interest expense, net (see Note 9). | ||||||||||||||||||||||||||||||||||||
on | Adjustments | Retirement | on | Other | ||||||||||||||||||||||||||||||||||||||
Available-for- | (a) | Obligations | Derivatives | Comprehensive | ||||||||||||||||||||||||||||||||||||||
Sale Securities | (Loss) Income | |||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013, net of tax | $ | 97 | $ | 205 | $ | (852 | ) | $ | 58 | $ | (492 | ) | ||||||||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications, before tax | (131 | ) | (5 | ) | — | 18 | (118 | ) | ||||||||||||||||||||||||||||||||||
Tax benefit (expense) | 48 | — | — | (6 | ) | 42 | ||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications, net of tax | (83 | ) | (5 | ) | — | 12 | (76 | ) | ||||||||||||||||||||||||||||||||||
Reclassifications, before tax | (18 | ) | — | 23 | (15 | ) | (10 | ) | ||||||||||||||||||||||||||||||||||
Tax benefit (expense) | 6 | — | (9 | ) | 5 | 2 | ||||||||||||||||||||||||||||||||||||
Reclassifications, net of tax | (12 | )(b) | — | 14 | (c) | (10 | )(d) | (8 | ) | |||||||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (95 | ) | (5 | ) | 14 | 2 | (84 | ) | ||||||||||||||||||||||||||||||||||
Balance as of July 26, 2013, net of tax | $ | 2 | $ | 200 | $ | (838 | ) | $ | 60 | $ | (576 | ) | ||||||||||||||||||||||||||||||
(a) | Taxes are not provided on CTA as substantially all translation adjustments relate to earnings that are intended to be indefinitely reinvested outside the U.S. | |||||||||||||||||||||||||||||||||||||||||
(b) | Represents net realized gains on sales of available-for-sale securities that were reclassified from AOCI to other expense, net (see Note 6). | |||||||||||||||||||||||||||||||||||||||||
(c) | Includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note 17). | |||||||||||||||||||||||||||||||||||||||||
(d) | Relates to foreign currency cash flow hedges that were reclassified from AOCI to other expense, net or cost of products sold and forward starting interest rate derivative instruments that were reclassified from AOCI to interest expense, net (see Note 9). |
Contingencies
Contingencies | 3 Months Ended | 12 Months Ended |
Jul. 25, 2014 | Apr. 25, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Contingencies | ' | ' |
18. Contingencies | ||
Note 19 – Contingencies | The Company is involved in a number of legal actions. The outcomes of these legal actions are not within the Company’s complete control and may not be known for prolonged periods of time. In some actions, the claimants seek damages, as well as other relief (including injunctions barring the sale of products that are the subject of the lawsuit), that could require significant expenditures or result in lost revenues. In accordance with U.S. GAAP, the Company records a liability in the consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. Estimates of probable losses resulting from litigation and governmental proceedings involving the Company are inherently difficult to predict, particularly when the matters are in early procedural stages, with incomplete scientific facts or legal discovery; involve unsubstantiated or indeterminate claims for damages; potentially involve penalties, fines or punitive damages; or could result in a change in business practice. While it is not possible to predict the outcome for most of the matters discussed, the Company believes it is possible that costs associated with them could have a material adverse impact on the Company’s consolidated earnings, financial position, or cash flows. | |
Medtronic is involved in a number of legal actions. The outcomes of these legal actions are not within Medtronic’s complete control and may not be known for prolonged periods of time. In some actions, the claimants seek damages, as well as other relief (including injunctions barring the sale of products that are the subject of the lawsuit), that could require significant expenditures or result in lost revenues. In accordance with U.S. GAAP, Medtronic records a liability in the consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. Estimates of probable losses resulting from litigation and governmental proceedings involving Medtronic are inherently difficult to predict, particularly when the matters are in early procedural stages, with incomplete scientific facts or legal discovery; involve unsubstantiated or indeterminate claims for damages; potentially involve penalties, fines or punitive damages; or could result in a change in business practice. While it is not possible to predict the outcome for most of the matters discussed, Medtronic believes it is possible that costs associated with them could have a material adverse impact on Medtronic’s consolidated earnings, financial position, or cash flows. | Litigation with Wyeth and Cordis Corporation | |
On February 22, 2008, Wyeth and Cordis Corporation (Cordis) filed a lawsuit against the Company and its subsidiary, Medtronic AVE, Inc., in U.S. District Court for the District of New Jersey, alleging that Medtronic’s Endeavor drug-eluting stent infringes three U.S. “Morris” patents alleged to be owned by Wyeth and exclusively licensed to Cordis. On January 19, 2012, the Court found the patent claims asserted against Medtronic to be invalid and entered an Order and Judgment in favor of Medtronic and the other defendants. Wyeth and Cordis have appealed. On June 24, 2013, the Court of Appeals for the Federal Circuit affirmed the District Court’s order. The Company is indemnified for the claims made by Wyeth and Cordis. The Company has not recorded an expense related to damages in connection with these matters because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company cannot reasonably estimate the range of loss, if any, that may result from this matter. | ||
Litigation with Edwards Lifesciences Corporation | ||
On March 19, 2010, the U.S. District Court for the District of Delaware added Medtronic CoreValve LLC (CoreValve) as a party to litigation pending between Edwards and CoreValve, Inc. In the litigation, Edwards asserted that CoreValve’s transcatheter aortic valve replacement product infringed three U.S. “Andersen” patents owned by Edwards. Before trial, the court granted summary judgment to Medtronic as to two of the three patents. Following a trial, on April 1, 2010 a jury found that CoreValve willfully infringed a claim on the remaining “Andersen” patent and awarded total lost profit and royalty damages, as of that time, of $74 million. On November 13, 2012, the Court of Appeals for the Federal Circuit upheld the jury verdict and remanded to the District Court to reconsider issuing an injunction. Medtronic petitioned for certiorari to the U.S. Supreme Court, but the petition was denied on October 7, 2013. Medtronic recorded an expense of $245 million related to probable and reasonably estimated damages for this matter in the second quarter of fiscal year 2013, of which $84 million was paid on February 28, 2013. On March 12, 2010, Edwards served a second lawsuit in the Delaware court upon CoreValve, Medtronic Vascular, and Medtronic, asserting that Medtronic’s transcatheter aortic valve replacement product from CoreValve infringed three U.S. “Andersen” patents owned by Edwards, including two of the patents that were the subject of the first lawsuit. | ||
Sprint Fidelis Product Liability Matters | On January 15, 2014, the Delaware court found that the CoreValve transcatheter aortic valve replacement product willfully infringed on a “Cribier” patent, with a jury award in the amount of $394 million. | |
Edwards has also brought actions in Europe alleging patent infringement. Edwards previously asserted that the CoreValve product infringed an “Andersen” patent in Germany and the United Kingdom, which is a counterpart to the U.S. “Andersen” patents. Courts in both countries found that the CoreValve product does not infringe the European “Andersen” patent and dismissed both cases. On August 30, 2012, Edwards commenced a proceeding in Mannheim, Germany, alleging that Medtronic’s CoreValve transcatheter valve infringes three European patents and seeking injunctive and other relief. On June 14, 2013, the Mannheim court dismissed Edwards’ case on the merits that Medtronic’s CoreValve transcatheter valve infringes the “Cribier” patent. On July 12, 2013, the Mannheim court found that Medtronic’s CoreValve transcatheter valve infringes the “Spenser” patent and issued an injunction against Medtronic’s sale or use of the CoreValve product in Germany. Medtronic appealed the court’s finding of infringement. On August 26, 2013, Edwards posted a 50 million Euro bond, as mandated by the court, to enforce the injunction. On November 14, 2013, the appeals court in Karlsruhe stayed the injunction based on the likelihood that the “Spenser” patent would be found to be invalid. On March 5, 2014, the European Patent Office (EPO) determined the “Spenser” patent was invalid. The Mannheim court stayed a third proceeding that had been scheduled for trial on December 20, 2013, involving a related “Cribier” patent, until EPO proceedings conclude regarding the validity of the first “Cribier” patent which was revoked by the Opposition Division of the EPO on December 17, 2013. | ||
In 2007, a putative class action was filed in the Ontario Superior Court of Justice in Canada seeking damages for personal injuries allegedly related to Medtronic’s Sprint Fidelis family of defibrillation leads. On October 20, 2009, the court certified a class proceeding but denied class certification on plaintiffs’ claim for punitive damages. Pretrial proceedings are underway. Medtronic has not recorded an expense related to damages in connection with this matter because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, Medtronic cannot reasonably estimate the range of loss, if any, that may result from this matter. | ||
On May 19, 2014, Medtronic and Edwards agreed to settle all pending litigation, and the parties will dismiss with prejudice all claims in the pending matters. The settlement agreement provided for a one-time payment of $750 million from Medtronic to Edwards. The agreement also requires ongoing royalties for Medtronic sales of its CoreValve transcatheter valve with minimum annual payments of $40 million through April 9, 2022. As a result, Medtronic recognized a $589 million expense (net of existing accrual) in fiscal year 2014. The $750 million was paid on May 23, 2014. The parties also agreed to cross license the relevant patents in the litigations, and covenanted not to sue each other for eight years in the field of transcatheter valves and related accessories. | ||
INFUSE Product Liability Litigation | Sprint Fidelis Product Liability Matters | |
In 2007, a putative class action was filed in the Ontario Superior Court of Justice in Canada seeking damages for personal injuries allegedly related to the Company’s Sprint Fidelis family of defibrillation leads. On October 20, 2009, the court certified a class proceeding but denied class certification on plaintiffs’ claim for punitive damages. Pretrial proceedings are underway. The Company has not recorded an expense related to damages in connection with this matter because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company cannot reasonably estimate the range of loss, if any, that may result from this matter. | ||
As of August 26, 2014, plaintiffs had filed approximately 750 lawsuits against Medtronic in the U.S. state and federal courts, reflecting approximately 1,200 individual personal injury claims from the INFUSE bone graft product. Certain law firms have advised Medtronic that they may bring a large number of similar claims against Medtronic in the future. Medtronic estimates those law firms represent approximately 3,600 additional unfiled claimants. Medtronic recorded an expense of $140 million in fiscal year 2014, related to probable and reasonably estimated damages in connection with these matters. | INFUSE Product Liability Litigation | |
As of the end of fiscal year 2014, plaintiffs filed approximately 750 lawsuits against the Company in the U.S. state and federal courts, reflecting approximately 1,200 individual personal injury claims from the INFUSE bone graft product. Certain law firms have advised the Company that they may bring a large number of similar claims against the Company in the future. The Company estimates those law firms represent approximately 3,600 additional unfiled claimants. The Company recorded an expense of $140 million in fiscal year 2014, related to probable and reasonably estimated damages in connection with these matters. | ||
Other INFUSE Litigation | Other INFUSE Litigation | |
On June 5, 2014, Humana, Inc. filed a lawsuit for unspecified monetary damages in the U.S. District Court for the Western District of Tennessee, alleging that Medtronic violated federal racketeering (RICO) law and various state laws, by conspiring with physicians to promote unapproved uses of INFUSE. The Company has not recorded an expense related to damages in connection with this matter because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company cannot reasonably estimate the range of loss, if any, that may result from this matter. | ||
On June 5, 2014, Humana, Inc. filed a lawsuit for unspecified monetary damages in the U.S. District Court for the Western District of Tennessee, alleging that Medtronic violated federal racketeering (RICO) law and various state laws, by conspiring with physicians to promote unapproved uses of INFUSE. Medtronic has not recorded an expense related to damages in connection with this matter because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, Medtronic cannot reasonably estimate the range of loss, if any, that may result from this matter. | Shareholder Related Matters | |
On March 12, 2012, Charlotte Kokocinski filed a shareholder derivative action against both the Company and certain of its current and former officers and members of the Board of Directors in the U.S. District Court for the District of Minnesota, setting forth certain allegations, including a claim that defendants violated various purported duties in connection with the INFUSE bone graft product and otherwise. On March 25, 2013, the Court dismissed the case without prejudice. In May 2012, Daniel Himmel and the Saratoga Advantage Trust commenced two other separate shareholder derivative actions in Hennepin County, Minnesota, District Court against the same defendants, making allegations similar to those in the Kokocinski case. | ||
Shareholder Related Matters | West Virginia Pipe Trades and Phil Pace, on June 27 and July 3, 2013, respectively, filed putative class action complaints against Medtronic and certain of its officers in the U.S. District Court for the District of Minnesota, alleging that the defendants made false and misleading public statements regarding the INFUSE Bone Graft product during the period of December 8, 2010 through August 3, 2011. The Company has not recorded an expense related to damages in connection with these matters because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company cannot reasonably estimate the range of loss, if any, that may result from these matters. | |
Mirowski | ||
On March 12, 2012, Charlotte Kokocinski filed a shareholder derivative action against both Medtronic and certain of its current and former officers and members of the Board of Directors in the U.S. District Court for the District of Minnesota, setting forth certain allegations, including a claim that defendants violated various purported duties in connection with the INFUSE bone graft product and otherwise. On March 25, 2013, the Court dismissed the case without prejudice. In May 2012, Daniel Himmel and the Saratoga Advantage Trust commenced two other separate shareholder derivative actions in Hennepin County, Minnesota, District Court against the same defendants, making allegations similar to those in the Kokocinski case. On July 1, 2014, Road Carriers Local 707 Welfare & Pension Funds filed a shareholder derivative action in Hennepin County, Minnesota, District Court against the same defendants making allegations similar to those in the Kokocinski, Himmel, and Saratoga Advantage Trust cases. On July 24, 2014, Anne Shirley Cutler filed a shareholder derivative action in Hennepin County, Minnesota, District Court against certain of the same defendants making allegations similar to those in the Kokocinski, Himmel, and Saratoga Advantage Trust cases as well as allegations that defendants violated purported duties in connection with the Synchromed pain pump system. | Medtronic is a licensee to the RE 38,119 patent (‘119 Patent) and RE 38,897 patent (‘897 Patent) owned by Mirowski Family Ventures, LLC (Mirowski) relating to the treatment of hemodynamic dysfunction. Medtronic and Mirowski dispute the application of the ‘119 and ‘897 Patents to certain Medtronic cardiac resynchronization products. On December 17, 2007, Medtronic filed an action in U.S. District Court for the District of Delaware seeking a declaration that none of its products infringe any valid claims of either the ‘119 or ‘897 Patents. If certain conditions are fulfilled, the ‘119 and/or ‘897 Patents are determined to be valid, and the Medtronic products are found to infringe the ‘119 and/or ‘897 Patents, Medtronic will be obligated to pay royalties to Mirowski based upon sales of certain cardiac resynchronization therapy-defibrillator (CRT-D) products. On March 30, 2011, the trial court entered a judgment of non-infringement in Medtronic’s favor. On September 16, 2012, the Federal Circuit reversed and remanded the trial court’s decision for a new trial, based on its holding that the trial court did not properly allocate the burden of proof in the initial proceedings. Medtronic’s petition for certiorari to the U.S. Supreme Court was granted, and on January 22, 2014, the Supreme Court reversed the Federal Circuit’s decision regarding the burden of proof. On March 11, 2014, the Federal Circuit affirmed the trial court’s judgment of non-infringement. The Company has not recorded an expense pursuant to U.S. GAAP requirements in connection with this matter because any loss is not probable or reasonably estimable. Additionally, the Company cannot reasonably estimate the range of loss, if any, that may result from this matter. | |
Other Matters | ||
West Virginia Pipe Trades and Phil Pace, on June 27 and July 3, 2013, respectively, filed putative class action complaints against Medtronic and certain of its officers in the U.S. District Court for the District of Minnesota, alleging that the defendants made false and misleading public statements regarding the INFUSE Bone Graft product during the period of December 8, 2010 through August 3, 2011. Medtronic has not recorded an expense related to damages in connection with these matters because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, Medtronic cannot reasonably estimate the range of loss, if any, that may result from these matters. | The Company has received subpoenas or document requests from certain government bodies seeking information regarding sales, marketing, clinical, and other information relating to the INFUSE bone graft product, including civil investigative demands from the Attorneys General in Massachusetts, California, Oregon, Illinois, and Washington. The Company is fully cooperating with these requests. | |
On September 16, 2009, the Company received a subpoena from the Office of Inspector General for the Department of Health and Human Services in the Eastern District of California requesting production of documents relating to the Company’s cardiac rhythm medical devices, including revenue, sales, marketing, and promotional documents, documents relating to reimbursement communications to customers pertaining to the devices, documents relating to scientific studies and registries pertaining to the devices, and documents relating to payments or items of value provided to customers. The Company recorded an expense of $10 million in fiscal year 2014, related to probable and reasonably estimated damages. In May 2014, the Company settled this matter for $10 million and certain legal fees. | ||
On July 2, 2014, Lewis Merenstein filed a putative shareholder class action in Hennepin County, Minnesota, District Court seeking to enjoin the potential acquisition of Covidien. The lawsuit names Medtronic, Covidien, and each member of the Medtronic board as defendants, and alleges that the directors breached their fiduciary duties to shareholders with regard to the potential acquisition. On August 21, 2014, Kenneth Steiner filed a putative shareholder class action in Hennepin County, Minnesota, District Court, also seeking an injunction to prevent the potential Covidien acquisition. On July 10, 2014, Richard Taxman filed a putative shareholder class action in the U.S. District Court for the District of Massachusetts also seeking to enjoin the potential acquisition, and naming Medtronic, Covidien, and the members of the Covidien board of directors as defendants. On August 26, 2014, William Cobb filed a putative shareholder class action in Suffolk County Superior Court, Massachusetts, asserting claims similar to those asserted in Taxman. Medtronic has not recorded any expense related to damages in connection with these matters because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, Medtronic cannot reasonably estimate the range of loss, if any, that may result from these matters. | On October 14, 2010, the Company received a subpoena issued by the U.S. Attorney’s Office for the Western District of New York pursuant to the Health Insurance Portability & Accountability Act of 1996, relating to the Company’s sales, marketing, and reimbursement support practices regarding certain neurostimulation devices. The Company is fully cooperating with this inquiry. | |
On November 9, 2010, the French Competition Authority commenced an investigation of the Company, along with a number of other medical device companies, and the companies’ trade association, Syndicat National de l’Industrie des Technologies Medicales (SNITEM), to determine whether such companies or SNITEM engaged in any anticompetitive practices in responding to tenders to purchase certain medical devices. The Company is fully cooperating with the investigation. | ||
Mirowski | ||
On December 3, 2013, the Company received a subpoena for records from the U.S. Attorney’s Office for the District of Minnesota related to the same topic addressed in its letter of May 6, 2013, requesting information relating to the Company’s compliance with the Trade Agreements Act. The Company is fully cooperating with this inquiry. | ||
Medtronic is a licensee to the RE 38,119 patent (‘119 Patent) and RE 38,897 patent (‘897 Patent) owned by Mirowski Family Ventures, LLC (Mirowski) relating to the treatment of hemodynamic dysfunction. Medtronic and Mirowski dispute the application of the ‘119 and ‘897 Patents to certain Medtronic cardiac resynchronization products. On December 17, 2007, Medtronic filed an action in U.S. District Court for the District of Delaware seeking a declaration that none of its products infringe any valid claims of either the ‘119 or ‘897 Patents. If certain conditions are fulfilled, the ‘119 and/or ‘897 Patents are determined to be valid, and the Medtronic products are found to infringe the ‘119 and/or ‘897 Patents, Medtronic will be obligated to pay royalties to Mirowski based upon sales of certain cardiac resynchronization therapy-defibrillator (CRT-D) products. On March 30, 2011, the trial court entered a judgment of non-infringement in Medtronic’s favor. On September 16, 2012, the Federal Circuit reversed and remanded the trial court’s decision for a new trial, based on its holding that the trial court did not properly allocate the burden of proof in the initial proceedings. Medtronic’s petition for certiorari to the U.S. Supreme Court was granted, and on January 22, 2014, the Supreme Court reversed the Federal Circuit’s decision regarding the burden of proof. On March 11, 2014, the Federal Circuit affirmed the trial court’s judgment of non-infringement. On August 6, 2014, Mirowski filed a petition for certiorari to the U.S. Supreme Court asking for further review of the Federal Circuit’s affirmance. Medtronic has not recorded an expense pursuant to U.S. GAAP requirements in connection with this matter because any loss is not probable or reasonably estimable. Additionally, Medtronic cannot reasonably estimate the range of loss, if any, that may result from this matter. | Except as described above, the Company has not recorded an expense related to losses in connection with these matters because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company cannot reasonably estimate the range of loss, if any, that may result from these matters. | |
In the normal course of business, the Company periodically enters into agreements that require it to indemnify customers or suppliers for specific risks, such as claims for injury or property damage arising out of the Company’s products or the negligence of its personnel or claims alleging that its products infringe third-party patents or other intellectual property. The Company’s maximum exposure under these indemnification provisions cannot be estimated, and the Company has not accrued any liabilities within the consolidated financial statements. Historically, the Company has not experienced significant losses on these types of indemnifications. | ||
Other Matters | ||
Medtronic has received subpoenas or document requests from certain government bodies seeking information regarding sales, marketing, clinical, and other information relating to the INFUSE bone graft product, including civil investigative demands from the Attorneys General in Massachusetts, California, Oregon, Illinois, and Washington. Medtronic is fully cooperating with these requests. | ||
On October 14, 2010, Medtronic received a subpoena issued by the U.S. Attorney’s Office for the Western District of New York pursuant to the Health Insurance Portability & Accountability Act of 1996, relating to Medtronic’s sales, marketing, and reimbursement support practices regarding certain neurostimulation devices. Medtronic is fully cooperating with this inquiry. Medtronic recorded an expense of $3 million in the first quarter of fiscal year 2015, related to probable and reasonably estimated damages in connection with this matter. | ||
On November 9, 2010, the French Competition Authority commenced an investigation of Medtronic, along with a number of other medical device companies, and the companies’ trade association, Syndicat National de l’Industrie des Technologies Medicales (SNITEM), to determine whether such companies or SNITEM engaged in any anticompetitive practices in responding to tenders to purchase certain medical devices. Medtronic is fully cooperating with the investigation. | ||
On December 3, 2013, Medtronic received a subpoena for records from the U.S. Attorney’s Office for the District of Minnesota, requesting information relating to Medtronic’s compliance with the Trade Agreements Act. Medtronic is fully cooperating with this inquiry. | ||
Except as described above, Medtronic has not recorded an expense related to losses in connection with these matters because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, Medtronic cannot reasonably estimate the range of loss, if any, that may result from these matters. | ||
In the normal course of business, Medtronic periodically enters into agreements that require it to indemnify customers or suppliers for specific risks, such as claims for injury or property damage arising out of Medtronic’s products or the negligence of its personnel or claims alleging that its products infringe third-party patents or other intellectual property. Medtronic’s maximum exposure under these indemnification provisions cannot be estimated, and Medtronic has not accrued any liabilities within the consolidated financial statements. Historically, Medtronic has not experienced significant losses on these types of indemnifications. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ' | ||||||||||||||||||||||||||||
Segment and Geographic Information | ' | ' | ||||||||||||||||||||||||||||
20. Segment and Geographic Information | ||||||||||||||||||||||||||||||
Note 20 – Segment and Geographic Information | The Company’s management evaluates performance and allocates resources based on profit and loss from operations before income taxes and interest expense, net, not including special charges, restructuring charges, net, certain litigation charges, net, acquisition-related items, and certain tax adjustments. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in Note 1. | |||||||||||||||||||||||||||||
In the first quarter of fiscal year 2014, the Company amended the way in which management evaluates performance and allocates resources for the Diabetes business including separating the Diabetes business from the Restorative Therapies Group. As a result, the Company began to operate under three reportable segments and three operating segments with the Diabetes business operating as a separate group. Accordingly, the segment information for the prior years has been restated to present three reportable segments. | ||||||||||||||||||||||||||||||
Segment information | The Company’s Cardiac and Vascular Group consists of four businesses: Cardiac Rhythm Disease Management (CRDM), Coronary, Structural Heart, and Endovascular. The primary products sold by this operating segment include those for cardiac rhythm disorders and cardiovascular disease. The Company’s Restorative Therapies Group consists of three businesses: Spine, Neuromodulation, and Surgical Technologies. The primary products sold by this operating segment include those for spinal conditions and musculoskeletal trauma, neurological disorders, urological and digestive disorders, and ear, nose, and throat conditions. The primary products sold by the Company’s Diabetes Group include those for diabetes management. | |||||||||||||||||||||||||||||
Net sales of the Company’s reportable segments include end-customer revenues from the sale of products they each develop and manufacture or distribute. Net sales and earnings before income taxes by reportable segment are as follows: | ||||||||||||||||||||||||||||||
Medtronic’s management evaluates performance and allocates resources based on profit and loss from operations before income taxes and interest expense, net, not including special charges, restructuring charges, net, certain litigation charges, net, and acquisition-related items. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in Note 1 to the consolidated audited financial statements included in this joint proxy statement/prospectus. | ||||||||||||||||||||||||||||||
Medtronic operates under three reportable segments and three operating segments. Medtronic’s Cardiac and Vascular Group consists of three businesses: Cardiac Rhythm & Heart Failure, Coronary & Structural Heart, and Aortic & Peripheral. The primary products sold by this operating segment include those for cardiac rhythm disorders and cardiovascular disease. Medtronic’s Restorative Therapies Group consists of three businesses: Spine, Neuromodulation, and Surgical Technologies. The primary products sold by this operating segment include those for spinal conditions and musculoskeletal trauma, neurological disorders, urological and digestive disorders, and ear, nose, and throat conditions. The primary products sold by Medtronic’s Diabetes Group include those for diabetes management. | Fiscal Year | |||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Net sales of Medtronic’s reportable segments include end-customer revenues from the sale of products they each develop and manufacture or distribute. Net sales and earnings before income taxes by reportable segment are as follows: | Cardiac and Vascular Group | $ | 8,847 | $ | 8,695 | $ | 8,482 | |||||||||||||||||||||||
Restorative Therapies Group | 6,501 | 6,369 | 6,221 | |||||||||||||||||||||||||||
Diabetes Group | 1,657 | 1,526 | 1,481 | |||||||||||||||||||||||||||
Three months ended | Total Net Sales | $ | 17,005 | $ | 16,590 | $ | 16,184 | |||||||||||||||||||||||
(in millions) | July 25, | July 26, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
Cardiac and Vascular Group | $ | 2,254 | $ | 2,160 | ||||||||||||||||||||||||||
Restorative Therapies Group | 1,603 | 1,554 | Fiscal Year | |||||||||||||||||||||||||||
Diabetes Group | 416 | 369 | (in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Cardiac and Vascular Group | $ | 2,982 | $ | 2,935 | $ | 2,772 | ||||||||||||||||||||||||
Total Net Sales | $ | 4,273 | $ | 4,083 | Restorative Therapies Group | 1,821 | 1,778 | 1,707 | ||||||||||||||||||||||
Diabetes Group | 457 | 432 | 396 | |||||||||||||||||||||||||||
Three months ended | Total Reportable Segments’ Earnings Before Income Taxes | 5,260 | 5,145 | 4,875 | ||||||||||||||||||||||||||
(in millions) | July 25, | July 26, | Special charges | (40 | ) | — | — | |||||||||||||||||||||||
2014 | 2013 | Restructuring charges, net(a) | (88 | ) | (182 | ) | (87 | ) | ||||||||||||||||||||||
Cardiac and Vascular Group | $ | 712 | $ | 756 | Certain litigation charges, net | (770 | ) | (245 | ) | (90 | ) | |||||||||||||||||||
Restorative Therapies Group | 410 | 421 | Acquisition-related items | (117 | ) | 49 | (12 | ) | ||||||||||||||||||||||
Diabetes Group | 120 | 75 | Interest expense, net | (108 | ) | (151 | ) | (149 | ) | |||||||||||||||||||||
Corporate | (432 | ) | (365 | ) | (392 | ) | ||||||||||||||||||||||||
Total Reportable Segments’ Earnings Before Income Taxes | 1,242 | 1,252 | ||||||||||||||||||||||||||||
Special charges | — | (40 | ) | Total Earnings From Continuing Operations Before Income Taxes | $ | 3,705 | $ | 4,251 | $ | 4,145 | ||||||||||||||||||||
Restructuring charges, net | (30 | ) | (18 | ) | ||||||||||||||||||||||||||
Acquisition-related items | (41 | ) | 96 | |||||||||||||||||||||||||||
Interest expense, net | (5 | ) | (40 | ) | (a) | For fiscal years 2014 and 2013, restructuring charges, net within this table include the impact of amounts recorded within cost of products sold in the consolidated statements of earnings related to the fiscal year 2014 initiative and fiscal year 2013 initiative, respectively. | ||||||||||||||||||||||||
Corporate | (83 | ) | (97 | ) | The following table presents the Company’s net assets by reportable segment: | |||||||||||||||||||||||||
Earnings Before Income Taxes | $ | 1,083 | $ | 1,153 | ||||||||||||||||||||||||||
(in millions) | April 25, | April 26, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
Geographic information | Cardiac and Vascular Group | $ | 6,578 | $ | 6,941 | |||||||||||||||||||||||||
Restorative Therapies Group | 9,604 | 10,058 | ||||||||||||||||||||||||||||
Net sales to external customers by geography are as follows: | Diabetes Group | 1,819 | 1,857 | |||||||||||||||||||||||||||
Total Net Assets of Reportable Segments | 18,001 | 18,856 | ||||||||||||||||||||||||||||
Short-term borrowings | (1,613 | ) | (910 | ) | ||||||||||||||||||||||||||
Three months ended | Long-term debt | (10,315 | ) | (9,741 | ) | |||||||||||||||||||||||||
(in millions) | July 25, | July 26, | Corporate | 13,370 | 10,466 | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
United States | $ | 2,333 | $ | 2,206 | Total Net Assets | $ | 19,443 | $ | 18,671 | |||||||||||||||||||||
Europe and Canada | 1,081 | 1,046 | ||||||||||||||||||||||||||||
Asia-Pacific | 649 | 656 | Geographic Information | |||||||||||||||||||||||||||
Other Foreign | 210 | 175 | Net sales to external customers and property, plant, and equipment, net by geography are as follows: | |||||||||||||||||||||||||||
Total Net Sales | $ | 4,273 | $ | 4,083 | ||||||||||||||||||||||||||
(in millions) | United States | Europe and | Asia Pacific | Other | Consolidated | |||||||||||||||||||||||||
Canada | Foreign | |||||||||||||||||||||||||||||
Certain prior period net sales to external customers by geography have been corrected to conform to the current period classification. These revisions are considered immaterial. | Fiscal Year 2014 | |||||||||||||||||||||||||||||
Net sales to external customers | $ | 9,209 | $ | 4,380 | $ | 2,600 | $ | 816 | $ | 17,005 | ||||||||||||||||||||
Property, plant, and equipment, net | $ | 1,762 | $ | 388 | $ | 195 | $ | 47 | $ | 2,392 | ||||||||||||||||||||
Fiscal Year 2013 | ||||||||||||||||||||||||||||||
Net sales to external customers | $ | 9,059 | $ | 4,199 | $ | 2,604 | $ | 728 | $ | 16,590 | ||||||||||||||||||||
Property, plant, and equipment, net | $ | 1,849 | $ | 391 | $ | 206 | $ | 44 | $ | 2,490 | ||||||||||||||||||||
Fiscal Year 2012 | ||||||||||||||||||||||||||||||
Net sales to external customers | $ | 8,828 | $ | 4,313 | $ | 2,399 | $ | 644 | $ | 16,184 | ||||||||||||||||||||
Property, plant, and equipment, net | $ | 1,894 | $ | 389 | $ | 154 | $ | 36 | $ | 2,473 | ||||||||||||||||||||
No single customer represented over 10 percent of the Company’s consolidated net sales in fiscal years 2014, 2013, or 2012. |
Subsequent_Events
Subsequent Events | 3 Months Ended | 12 Months Ended |
Jul. 25, 2014 | Apr. 25, 2014 | |
Subsequent Events | ' | ' |
21. Subsequent Events | ||
Note 21 – Subsequent Events | On June 15, 2014, Medtronic, Inc., a Minnesota corporation (Medtronic), entered into a Transaction Agreement (the Transaction Agreement) by and among Medtronic, Covidien public limited company, an Irish public limited company (Covidien), Kalani I Limited, a private limited company organized under the laws of Ireland (New Medtronic), Makani II Limited, a private limited company organized under the laws of Ireland and a wholly-owned subsidiary of New Medtronic (IrSub), Aviation Acquisition Co., Inc., a Minnesota corporation (U.S. AcquisitionCo), and Aviation Merger Sub, LLC, a Minnesota limited liability company and a wholly-owned subsidiary of U.S. AcquisitionCo (MergerSub). Under the terms of the Transaction Agreement, (i) New Medtronic and IrSub will acquire Covidien (the Acquisition) pursuant to the Irish Scheme of Arrangement under Section 201, and a capital reduction under Sections 72 and 74, of the Irish Companies Act of 1963 (the Arrangement) and (ii) MergerSub will merge with and into Medtronic, with Medtronic as the surviving corporation in the merger (such merger, the Merger, and the Merger together with the Acquisition, the Pending Acquisition). As a result of the Pending Acquisition, both Medtronic and Covidien will become wholly-owned direct or indirect subsidiaries of New Medtronic. | |
At the effective time of the Arrangement, (a) Covidien shareholders will be entitled to receive $35.19 in cash and 0.956 of a newly issued New Medtronic share (the Arrangement Consideration) in exchange for each Covidien share held by such shareholders, and (b) each share of Medtronic common stock will be converted into the right to receive one New Medtronic share. The total cash and stock value of the Pending Acquisition is approximately $42.9 billion based on Medtronic’s closing share price of $60.70 on June 13, 2014. It is expected that immediately after the closing of the Pending Acquisition, Covidien shareholders will own approximately 30 percent of New Medtronic on a fully diluted basis. Shares of New Medtronic are expected to trade on the New York Stock Exchange. | ||
The following developments have occurred since the events described in Medtronic’s unaudited condensed consolidated financial statements for the quarter ended July 25, 2014. | The Transaction Agreement may be terminated by mutual written consent of the parties. The Transaction Agreement also contains certain termination rights, including, among others, the right of either party to terminate if (a) the Arrangement has not become effective by March 15, 2015 (the End Date), subject to certain conditions, provided that the End Date will be extended to June 15, 2015 in certain circumstances, (b) the Covidien or Medtronic shareholder approvals are not obtained, (c) the other party breaches its representations and covenants and such breach would result in the closing conditions not being satisfied, subject to a cure period, (d) the Irish High Court declines to sanction the Arrangement, unless both parties agree to appeal the decision, or (e) there is a failure of the tax condition as described in Medtronic’s Current Report on Form 8-K filed with the SEC on June 16, 2014. Covidien also has the right, prior to the receipt of Covidien shareholder approval, to terminate the Transaction Agreement to accept a Covidien Superior Proposal (as defined in the Transaction Agreement) in certain circumstances. | |
The Transaction Agreement also provides that Medtronic must pay Covidien a termination fee of $850 million if the Transaction Agreement is terminated because the Medtronic board of directors changes its recommendation for the transaction and the Medtronic shareholders vote against the Transaction, and either (i) Covidien obtained the requisite Covidien shareholder approval or (ii) Medtronic effected such termination prior to the completion of the Covidien shareholder meeting. | ||
Timing | The consummation of the Pending Acquisition is subject to certain conditions, including approvals by Medtronic and Covidien shareholders. In addition, the proposed transaction requires regulatory clearances in the U.S., the E.U., China, and certain other countries. The Pending Acquisition is expected to close in the fourth calendar quarter of 2014 or early 2015. Covidien is a global health care products company that creates innovative medical solutions for better patient outcomes and delivers value through clinical leadership and excellence. Covidien develops, manufactures, and sells a diverse range of industry-leading medical device and supply products. | |
On June 15, 2014, Medtronic entered into a 364-day senior unsecured bridge credit agreement (the “Bridge Credit Agreement”) among Medtronic, New Medtronic, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent. Under the Bridge Credit Agreement, Bank of America, N.A. has committed to provide Medtronic with unsecured financing in an aggregate principal amount of up to $2.8 billion. The commitments are intended to be drawn to finance, in part, the cash component of the acquisition consideration and certain transaction expenses to the extent Medtronic does not arrange for alternative financing prior to the consummation of the Pending Acquisition. New Medtronic has guaranteed the obligations of Medtronic under the Bridge Credit Agreement. If Medtronic draws loans under the Bridge Credit Agreement, it intends to refinance any debt incurred thereunder. | ||
Medtronic expects the transaction to close in early 2015. | ||
Medtronic will require an additional $13.5 billion in order to finance the cash component of the acquisition consideration and certain transaction expenses. Medtronic expects to have cash equivalents in such amount available to it by the time of the consummation of the Pending Acquisition. In order to backstop the anticipated amount of cash on hand at the consummation of the Pending Acquisition, on June 15, 2014, IrSub entered into a 60-day senior unsecured cash bridge credit agreement (the “Cash Bridge Credit Agreement” and together with the Bridge Credit Agreement, the “Credit Agreements”) among IrSub, New Medtronic, the lenders from time to time party thereto and Bank of America as administrative agent. Under the Cash Bridge Credit Agreement, Bank of America, N.A. has committed to provide IrSub with unsecured financing in an aggregate principal amount of up to $13.5 billion for a 60-day period. New Medtronic has also guaranteed the obligations of IrSub under the Cash Bridge Credit Agreement and each of Medtronic and Covidien has agreed to provide additional guarantees of such obligations following the consummation of the Pending Acquisition. Loans drawn under the Cash Bridge Credit Agreement are expected to be repaid from cash equivalents liquidated by Medtronic. | ||
Financing | The funding of the loans under each Credit Agreement (the Closing Date) is conditioned on, among other things, the consummation of the Pending Acquisition and the absence of certain events of defaults described in each Credit Agreement. The commitments under each Credit Agreement automatically terminate on the earliest of (a) the funding and disbursement of the loans to the borrower on the Closing Date, (b) the occurrence of certain mandatory cancellation events or (c) March 15, 2015 (or if all but certain conditions under the Transaction Agreement have been completed, one year after June 15, 2015). | |
For further information regarding the Pending Acquisition and the Credit Agreements, please see the full text of the Transaction Agreement, a copy of which is filed as exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the SEC on June 16, 2014, the full text of the Bridge Credit Agreement, a copy of which is filed as exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on June 18, 2014, and the full text of the Cash Bridge Credit Agreement, a copy of which is filed as exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the SEC on June 18, 2014. | ||
General | ||
Medtronic initially contemplated financing a substantial portion of the cash component of the scheme consideration through an intercompany loan from one or more of its non-U.S. subsidiaries to IrSub. However, as announced on October 3, 2014, following the September 22, 2014 announcement by the U.S. Treasury Department and the IRS, Medtronic now expects that it will incur approximately $16.3 billion in external indebtedness to finance the cash component of the scheme consideration. Medtronic expects that a substantial portion of such external indebtedness will be incurred by Medtronic prior to the consummation of the transaction and will be guaranteed by New Medtronic. As a result, Medtronic, or its affiliates, will have a sufficient amount of cash available to it by the time of the consummation of the transaction to fund the cash component of the scheme consideration. | ||
New Bridge Credit Agreement | ||
On November 7, 2014, Medtronic entered into a 364-day senior unsecured bridge credit agreement (the “New Bridge Credit Agreement”), among Medtronic, New Medtronic, Medtronic Global Holdings SCA, a partnership limited by shares incorporated in Luxembourg and a wholly owned indirect subsidiary of New Medtronic (“Medtronic Luxco”), the lenders from time to time party thereto and Bank of America, N.A., as administrative agent. Under the New Bridge Credit Agreement, the lenders party thereto have committed to provide Medtronic with unsecured bridge financing in an aggregate principal amount of up to $11.3 billion. The commitments are intended to be available to finance, in part, the cash component of the scheme consideration and certain transaction expenses to the extent Medtronic does not arrange for alternative financing prior to the consummation of the transaction. New Medtronic and Medtronic Luxco have guaranteed the obligations. If Medtronic draws loans under the New Bridge Credit Agreement, it intends to refinance any such loans with the proceeds of other external indebtedness. | ||
Term Loan Credit Agreement | ||
On November 7, 2014, Medtronic also entered into a three-year senior unsecured term loan credit agreement (the “Term Loan Credit Agreement” and, together with the New Bridge Credit Agreement, the “New Credit Agreements”), among Medtronic, New Medtronic, Medtronic Luxco, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent. Under the Term Loan Credit Agreement, the lenders party thereto have committed to provide Medtronic with unsecured term loan financing in an aggregate principal amount of up to $5.0 billion. Medtronic intends to draw upon such commitments on the consummation of the transaction to finance, in part, the cash component of the scheme consideration and certain transaction expenses. New Medtronic and Medtronic Luxco have guaranteed the obligations of Medtronic under the Term Loan Credit Agreement. | ||
Termination of Existing Bridge Credit Agreements | ||
In connection with its entrance into the New Bridge Credit Agreement and the Term Loan Credit Agreement, on November 7, 2014, Medtronic terminated the unsecured bridge commitments previously provided to it in an aggregate principal amount of $2.8 billion under the existing 364-day senior unsecured Bridge Credit Agreement dated as of June 15, 2014. On the same date, IrSub terminated the unsecured bridge commitments previously provided to it in an aggregate principal amount of $13.5 billion under the 60-day senior unsecured Cash Bridge Credit Agreement dated as of June 15, 2014. | ||
Amended and Restated Revolving Credit Agreement | ||
On November 7, 2014, Medtronic also entered into an amendment and restatement agreement (the “Revolver Amendment Agreement”), among Medtronic, New Medtronic, Medtronic Luxco, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent and issuing bank. Under the Revolver Amendment Agreement, the parties thereto have agreed to enter into an amendment and restatement (the “Amended and Restated Revolving Credit Agreement”) of Medtronic’s existing $2.25 billion five-year senior unsecured revolving credit agreement dated as of December 17, 2012, among Medtronic, the lenders from time to time party thereto and Bank of America N.A., as administrative agent and issuing bank. | ||
The effectiveness of the Amended and Restated Revolving Credit Agreement is conditioned on, among other things, the consummation of the acquisition. Under the Amended and Restated Revolving Credit Agreement, the lenders party thereto will provide Medtronic and Medtronic Luxco with unsecured revolving credit commitments in an aggregate principal amount of up to $3.5 billion. The commitments are intended to be used for general corporate purposes, including acquisitions and working capital of Medtronic and Medtronic Luxco, and to replace the revolving credit facility currently available to Covidien. Medtronic and Medtronic Luxco will be co-borrowers under the Amended and Restated Revolving Credit Agreement and each of Medtronic, Medtronic Luxco and New Medtronic will also guarantee the obligations of the co-borrowers under the Amended and Restated Revolving Credit Agreement. | ||
A copy of the Bridge Credit Agreement is included as Exhibit 10.60 to the registration statement of which this joint proxy statement/prospectus forms a part. A copy of the Term Loan Credit Agreement is included as Exhibit 10.61 to the registration statement of which this joint proxy statement/prospectus forms a part. A copy of the Amended and Restated Revolving Credit Agreement is included as Exhibit 10.62 to the registration statement of which this joint proxy statement/prospectus forms a part. For further information regarding the Bridge Credit Agreement, the Term Loan Credit Agreement and the Amended and Restated Revolving Credit Agreement, please see the full text of the Bridge Credit Agreement, a copy of which is filed as Exhibit 10.1 to Medtronic’s Current Report on Form 8-K filed with the SEC on November 10, 2014, the full text of the Term Loan Credit Agreement, a copy of which is filed as Exhibit 10.2 to Medtronic’s Current Report on Form 8-K filed with the SEC on November 10, 2014 and the full text of the Amended and Restated Revolving Credit Agreement, a copy of which is filed as Exhibit 10.3 to Medtronic’s Current Report on Form 8-K filed with the SEC on November 10, 2014. | ||
Unaudited [Member] | ' | ' |
Subsequent Events | ' | ' |
22. Subsequent Events Update (unaudited) | ||
The following developments have occurred since the events described in Medtronic’s audited condensed consolidated financial statements for the year ended April 25, 2014. | ||
Timing | ||
Medtronic expects the transaction to close in early 2015. | ||
Financing | ||
General | ||
Medtronic initially contemplated financing a substantial portion of the cash component of the scheme consideration through an intercompany loan from one or more of its non-U.S. subsidiaries to IrSub. However, as announced on October 3, 2014, following the September 22, 2014 announcement by the U.S. Treasury Department and the IRS, Medtronic now expects that it will incur approximately $16.3 billion in external indebtedness to finance the cash component of the scheme consideration. Medtronic expects that a substantial portion of such external indebtedness will be incurred by Medtronic prior to the consummation of the transaction and will be guaranteed by New Medtronic. As a result, Medtronic, or its affiliates, will have a sufficient amount of cash available to it by the time of the consummation of the transaction to fund the cash component of the scheme consideration. | ||
New Bridge Credit Agreement | ||
On November 7, 2014, Medtronic entered into a 364-day senior unsecured bridge credit agreement (the “New Bridge Credit Agreement”), among Medtronic, New Medtronic, Medtronic Global Holdings SCA, a partnership limited by shares incorporated in Luxembourg and a wholly owned indirect subsidiary of New Medtronic (“Medtronic Luxco”), the lenders from time to time party thereto and Bank of America, N.A., as administrative agent. Under the New Bridge Credit Agreement, the lenders party thereto have committed to provide Medtronic with unsecured bridge financing in an aggregate principal amount of up to $11.3 billion. The commitments are intended to be available to finance, in part, the cash component of the scheme consideration and certain transaction expenses to the extent Medtronic does not arrange for alternative financing prior to the consummation of the transaction. New Medtronic and Medtronic Luxco have guaranteed the obligations of Medtronic under the New Bridge Credit Agreement. If Medtronic draws loans under the New Bridge Credit Agreement, it intends to refinance any such loans with the proceeds of other external indebtedness. | ||
Term Loan Credit Agreement | ||
On November 7, 2014, Medtronic also entered into a three-year senior unsecured term loan credit agreement (the “Term Loan Credit Agreement” and, together with the New Bridge Credit Agreement, the “New Credit Agreements”), among Medtronic, New Medtronic, Medtronic Luxco, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent. Under the Term Loan Credit Agreement, the lenders party thereto have committed to provide Medtronic with unsecured term loan financing in an aggregate principal amount of up to $5.0 billion. Medtronic intends to draw upon such commitments on the consummation of the transaction to finance, in part, the cash component of the scheme consideration and certain transaction expenses. New Medtronic and Medtronic Luxco have guaranteed the obligations of Medtronic under the Term Loan Credit Agreement. | ||
Termination of Existing Bridge Credit Agreements | ||
In connection with its entrance into the New Bridge Credit Agreement and the Term Loan Credit Agreement, on November 7, 2014, Medtronic terminated the unsecured bridge commitments previously provided to it in an aggregate principal amount of $2.8 billion under the existing 364-day senior unsecured Bridge Credit Agreement dated as of June 15, 2014. On the same date, IrSub terminated the unsecured bridge commitments previously provided to it in an aggregate principal amount of $13.5 billion under the 60-day senior unsecured Cash Bridge Credit Agreement dated as of June 15, 2014. | ||
Amended and Restated Revolving Credit Agreement | ||
On November 7, 2014, Medtronic also entered into an amendment and restatement agreement (the “Revolver Amendment Agreement”), among Medtronic, New Medtronic, Medtronic Luxco, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent and issuing bank. Under the Revolver Amendment Agreement, the parties thereto have agreed to enter into an amendment and restatement (the “Amended and Restated Revolving Credit Agreement”) of Medtronic’s existing $2.25 billion five-year senior unsecured revolving credit agreement dated as of December 17, 2012, among Medtronic, the lenders from time to time party thereto and Bank of America N.A., as administrative agent and issuing bank. | ||
The effectiveness of the Amended and Restated Revolving Credit Agreement is conditioned on, among other things, the consummation of the acquisition. Under the Amended and Restated Revolving Credit Agreement, the lenders party thereto will provide Medtronic and Medtronic Luxco with unsecured revolving credit commitments in an aggregate principal amount of up to $3.5 billion. The commitments are intended to be used for general corporate purposes, including acquisitions and working capital of Medtronic and Medtronic Luxco, and to replace the revolving credit facility currently available to Covidien. Medtronic and Medtronic Luxco will be co-borrowers under the A&R Revolving Credit Agreement and each of Medtronic, Medtronic Luxco and New Medtronic will also guarantee the obligations of the co-borrowers under the Amended and Restated Revolving Credit Agreement. | ||
A copy of the Bridge Credit Agreement is included as Exhibit 10.60 to the registration statement of which this joint proxy statement/prospectus forms a part. A copy of the Term Loan Credit Agreement is included as Exhibit 10.61 to the registration statement of which this joint proxy statement/prospectus forms a part. A copy of the Amended and Restated Revolving Credit Agreement is included as Exhibit 10.62 to the registration statement of which this joint proxy statement/prospectus forms a part. For further information regarding the Bridge Credit Agreement, the Term Loan Credit Agreement and the Amended and Restated Revolving Credit Agreement, please see the full text of the Bridge Credit Agreement, a copy of which is filed as Exhibit 10.1 to Medtronic’s Current Report on Form 8-K filed with the SEC on November 10, 2014, the full text of the Term Loan Credit Agreement, a copy of which is filed as Exhibit 10.2 to Medtronic’s Current Report on Form 8-K filed with the SEC on November 10, 2014 and the full text of the Amended and Restated Revolving Credit Agreement, a copy of which is filed as Exhibit 10.3 to Medtronic’s Current Report on Form 8-K filed with the SEC on November 10, 2014. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||
Apr. 25, 2014 | |||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||||||||
1. Summary of Significant Accounting Policies | |||||||||||||||||||||||
Nature of Operations Medtronic, Inc. (Medtronic or the Company) is the global leader in medical technology – alleviating pain, restoring health, and extending life for millions of people around the world. The Company provides innovative products and therapies for use by medical professionals to meet the health care needs of their patients. Primary products include those for cardiac rhythm disorders, cardiovascular disease, neurological disorders, spinal conditions and musculoskeletal trauma, urological and digestive disorders, and ear, nose, and throat and diabetes conditions. | |||||||||||||||||||||||
The Company is headquartered in Minneapolis, Minnesota, and markets its products primarily through a direct sales force in the United States (U.S.) and a combination of direct sales representatives and independent distributors in international markets. The primary markets for products are the U.S., Western Europe, Japan, and emerging markets. | |||||||||||||||||||||||
Principles of Consolidation The consolidated financial statements include the accounts of Medtronic, Inc., and its consolidated subsidiaries. All significant intercompany transactions and accounts have been eliminated. U.S. generally accepted accounting principles (U.S. GAAP) are applied when determining whether an entity is subject to consolidation. | |||||||||||||||||||||||
Beginning in the third quarter of fiscal year 2012, the results of operations, assets, and liabilities of the Physio-Control business, which were previously presented as a component of the Cardiac and Vascular Group operating segment, are classified as discontinued operations. All information in the following notes to the consolidated financial statements includes only results from continuing operations (excluding Physio-Control) for all periods presented, unless otherwise noted. For further information regarding discontinued operations, see Note 17. | |||||||||||||||||||||||
Fiscal Year-End The Company utilizes a 52/53-week fiscal year, ending the last Friday in April. The Company’s fiscal years 2014, 2013, and 2012 ended on April 25, 2014, April 26, 2013, and April 27, 2012, respectively, all of which were 52-week years. Fiscal year 2016 is the next 53-week year. | |||||||||||||||||||||||
Reclassifications In the first quarter of fiscal year 2014, the Company revised the classification of certain outstanding checks previously classified as a reduction of cash and cash equivalents in the prior period consolidated balance sheets to accounts payable, and revised the prior period consolidated statements of cash flows for the associated impact. Certain prior period disclosures have been reclassified to conform to current year presentation. These revisions are considered immaterial. | |||||||||||||||||||||||
Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ materially from those estimates. | |||||||||||||||||||||||
Cash Equivalents The Company considers highly liquid investments with maturities of three months or less from the date of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value. | |||||||||||||||||||||||
Investments Investments in marketable equity securities and debt securities are classified and accounted for as available-for-sale. Debt securities include corporate debt securities, U.S. and foreign government and agency securities, certificates of deposit, mortgage-backed securities, other asset-backed securities, debt funds, and auction rate securities. These investments are recorded at fair value in the consolidated balance sheets. The change in fair value for available-for-sale securities is recorded, net of taxes, as a component of accumulatedother comprehensive loss on the consolidated balance sheets. Management determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. The classification of marketable securities as current or long-term is based on the nature of the securities and their availability for use in current operations consistent with how the Company manages its capital structure and liquidity. | |||||||||||||||||||||||
Investments in securities that are classified and accounted for as trading securities include exchange-traded funds and are recorded at fair value on the consolidated balance sheets. The Company’s trading securities seek to offset changes in liabilities related to equity and other market risks of certain deferred compensation arrangements. The change in fair value for trading securities is recorded as a component of interest expense, net on the consolidated statements of earnings. | |||||||||||||||||||||||
Certain of the Company’s investments in equity and other securities are long-term, strategic investments in companies that are in varied stages of development. The Company accounts for these investments under the cost or the equity method of accounting, as appropriate. These investments are included in other assets on the consolidated balance sheets. The valuation of equity and other securities accounted for under the cost method considers all available financial information related to the investee, including valuations based on recent third-party equity investments in the investee. If an unrealized loss for any investment is considered to be other-than-temporary, the loss will be recognized in the consolidated statements of earnings in the period the determination is made. Equity securities accounted for under the equity method are initially recorded at the amount of the Company’s investment and adjusted each period for the Company’s share of the investee’s income or loss and dividends paid. Equity securities accounted for under both the cost and equity methods are reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company’s investment may not be recoverable. See Note 5 for discussion of the gains and losses recognized on equity and other securities. | |||||||||||||||||||||||
Accounts Receivable The Company grants credit to customers in the normal course of business, but generally does not require collateral or any other security to support its receivables. The Company maintains an allowance for doubtful accounts for potential credit losses. Uncollectible accounts are written off against the allowance when it is deemed that a customer account is uncollectible. | |||||||||||||||||||||||
Inventories Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as follows: | |||||||||||||||||||||||
(in millions) | April 25, | April 26, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Finished goods | $ | 1,196 | $ | 1,174 | |||||||||||||||||||
Work in process | 247 | 248 | |||||||||||||||||||||
Raw materials | 282 | 290 | |||||||||||||||||||||
Total | $ | 1,725 | $ | 1,712 | |||||||||||||||||||
Property, Plant, and Equipment Property, plant, and equipment is stated at cost. Additions and improvements that extend the lives of the assets are capitalized while expenditures for repairs and maintenance are expensed as incurred. Depreciation is provided using the straight-line method over the estimated useful lives of the various assets. Property, plant, and equipment balances and corresponding lives are as follows: | |||||||||||||||||||||||
(in millions) | April 25, | April 26, | Lives | ||||||||||||||||||||
2014 | 2013 | (in years) | |||||||||||||||||||||
Land and land improvements | $ | 152 | $ | 151 | Up to 20 | ||||||||||||||||||
Buildings and leasehold improvements | 1,565 | 1,532 | Up to 40 | ||||||||||||||||||||
Equipment | 4,409 | 4,110 | 7-Mar | ||||||||||||||||||||
Construction in progress | 313 | 359 | — | ||||||||||||||||||||
Subtotal | 6,439 | 6,152 | |||||||||||||||||||||
Less: Accumulated depreciation | (4,047 | ) | (3,662 | ) | |||||||||||||||||||
Property, plant, and equipment, net | $ | 2,392 | $ | 2,490 | |||||||||||||||||||
Depreciation expense of $501 million, $488 million, and $498 million was recognized in fiscal years 2014, 2013, and 2012, respectively. | |||||||||||||||||||||||
Goodwill Goodwill is the excess of the purchase price (consideration) over the estimated fair value of net assets, including in-process research and development (IPR&D), of acquired businesses. In accordance with U.S. GAAP, goodwill is not amortized. The Company assesses the impairment of goodwill annually in the third quarter and whenever an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is done at a reporting unit level. An impairment loss is recognized when the carrying amount of the reporting unit’s net assets exceed the estimated fair value of the reporting unit. The estimated fair value is determined using a discounted future cash flow analysis. | |||||||||||||||||||||||
Other Intangible Assets Other intangible assets include patents, trademarks, purchased technology, and IPR&D (since April 25, 2009). Intangible assets with a definite life are amortized on a straight-line or accelerated basis, as appropriate, with estimated useful lives ranging from three to 20 years. Intangible assets with a definite life are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset (asset group) may not be recoverable. Indefinite-lived intangible assets are tested for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying amount may be impaired. Impairment is calculated as the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted future cash flow analysis. | |||||||||||||||||||||||
IPR&D During fiscal year 2010, the Company adopted authoritative guidance related to business combinations. Subsequent to the adoption of this guidance, IPR&D acquired in a business combination is capitalized at its fair value as an indefinite-lived intangible asset. Prior to the adoption of this guidance, IPR&D was immediately expensed. The adoption of the authoritative guidance did not change the requirement to expense IPR&D immediately with respect to asset acquisitions. IPR&D charges are included within acquisition-related items in the consolidated statements of earnings. IPR&D has an indefinite life and is not amortized until completion and development of the project, at which time the IPR&D becomes an amortizable asset. If the related project is not completed in a timely manner or the project is terminated or abandoned, the Company may have an impairment related to the IPR&D, calculated as the excess of the asset’s carrying value over its fair value. | |||||||||||||||||||||||
The Company’s policy defines IPR&D as the fair value of those projects for which the related products have not received regulatory approval and have no alternative future use. Determining the fair value of IPR&D acquired as part of a business combination requires the Company to make significant estimates. The fair value assigned to IPR&D is determined by estimating the future cash flows of each project or technology and discounting the net cash flows back to their present values. The discount rate used is determined at the time of measurement in accordance with accepted valuation methodologies. These methodologies include consideration of the risk of the project not achieving commercial feasibility. | |||||||||||||||||||||||
At the time of acquisition, the Company expects that all acquired IPR&D will reach technological feasibility, but there can be no assurance that the commercial viability of these products will actually be achieved. The nature of the efforts to develop the acquired technologies into commercially viable products consists principally of planning, designing, and conducting clinical trials necessary to obtain regulatory approvals. The risks associated with achieving commercialization include, but are not limited to, delay or failure to obtain regulatory approvals to conduct clinical trials, delay or failure to obtain required market clearances, or delays or issues with patent issuance, or validity and litigation. If commercial viability were not achieved, the Company would likely look to other alternatives to provide these therapies. | |||||||||||||||||||||||
Contingent Consideration During fiscal year 2010, as mentioned above, the Company adopted authoritative guidance related to business combinations. Under this guidance, the Company must recognize contingent consideration at fair value at the acquisition date. Prior to the adoption of this guidance, contingent consideration was not included on the balance sheet and was recorded as incurred. The acquisition date fair value is measured based on the consideration expected to be transferred (probability-weighted), discounted back to present value. The discount rate used is determined at the time of measurement in accordance with accepted valuation methodologies. The fair value of the contingent consideration is remeasured at the estimated fair value at each reporting period with the change in fair value recognized as income or expense within acquisition-related items in the consolidated statements of earnings. Therefore, any changes in the fair value will impact the Company’s earnings in such reporting period thereby resulting in potential variability in the Company’s earnings until contingencies are resolved. | |||||||||||||||||||||||
Warranty Obligation The Company offers a warranty on various products. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the net costs to repair or otherwise satisfy the claim. The Company includes the warranty obligation in other accrued expenses and other long-term liabilities on the Company’s consolidated balance sheets. The Company includes the covered costs associated with field actions, if any, in cost of products sold in the Company’s consolidated statements of earnings. | |||||||||||||||||||||||
Changes in the Company’s product warranty obligations during the years ended April 25, 2014 and April 26, 2013 consisted of the following: | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balance as of April 27, 2012 | $ | 31 | |||||||||||||||||||||
Warranty claims provision | 25 | ||||||||||||||||||||||
Settlements made | (21 | ) | |||||||||||||||||||||
Balance as of April 26, 2013 | $ | 35 | |||||||||||||||||||||
Warranty claims provision | 25 | ||||||||||||||||||||||
Settlements made | (28 | ) | |||||||||||||||||||||
Balance as of April 25, 2014 | $ | 32 | |||||||||||||||||||||
Self-Insurance It is the Company’s policy to self-insure the vast majority of its insurable risks including medical and dental costs, disability coverage, physical loss to property, business interruptions, workers’ compensation, comprehensive general, and product liability. Insurance coverage is obtained for those risks required to be insured by law or contract. The Company uses claims data and historical experience, as applicable, to estimate liabilities associated with the exposures that the Company has self-insured. Based on historical loss trends, the Company believes that its self-insurance program accruals and its existing insurance coverage will be adequate to cover future losses. Historical trends, however, may not be indicative of future losses. These losses could have a material adverse impact on the Company’s consolidated financial statements. | |||||||||||||||||||||||
Retirement Benefit Plan Assumptions The Company sponsors various retirement benefit plans, including defined benefit pension plans (pension benefits), post-retirement medical plans (post-retirement benefits), defined contribution savings plans, and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. Pension benefit costs include assumptions for the discount rate, retirement age, compensation rate increases, and the expected return on plan assets. Post-retirement medical benefit costs include assumptions for the discount rate, retirement age, expected return on plan assets, and health care cost trend rate assumptions. | |||||||||||||||||||||||
The Company evaluates the assumptions, including discount rate, retirement age, compensation rate increases, expected return on plan assets, and health care cost trend assumptions of its pension benefits and post-retirement benefits annually. In evaluating these assumptions, many factors are considered, including an evaluation of assumptions made by other companies, historical assumptions compared to actual results, current market conditions, asset allocations, and the views of leading financial advisors and economists. In evaluating the expected retirement age assumption, the Company considers the retirement ages of past employees eligible for pension and medical benefits together with expectations of future retirement ages. Refer to Note 14 for additional information regarding the Company’s retirement benefit plans. | |||||||||||||||||||||||
Accrued Certain Litigation Charges As of April 25, 2014 and April 26, 2013, accrued certain litigation charges were $917 million and $161 million, respectively. The Company includes accrued certain litigation charges in other accrued expenses on the Company’s consolidated balance sheets. | |||||||||||||||||||||||
Revenue Recognition The Company sells its products primarily through a direct sales force in the U.S. and a combination of direct sales representatives and independent distributors in international markets. The Company recognizes revenue when title to the goods and risk of loss transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters requiring customer acceptance. In cases where the Company utilizes distributors or ships product directly to the end user, it recognizes revenue upon shipment provided all revenue recognition criteria have been met. A portion of the Company’s revenue is generated from inventory maintained at hospitals or with field representatives. For these products, revenue is recognized at the time the product has been used or implanted. The Company records estimated sales returns, discounts, and rebates as a reduction of net sales in the same period revenue is recognized. | |||||||||||||||||||||||
For multiple-element arrangements, the Company allocates arrangement consideration to the deliverables by use of the relative selling price method. The selling price used for each deliverable is based on vendor–specific objective evidence (VSOE) if available, third–party evidence (TPE) if VSOE is not available, or best estimated selling price (BESP) if neither VSOE nor TPE is available. BESP is determined in a manner consistent with that used to establish the price to sell the deliverable on a standalone basis. | |||||||||||||||||||||||
Shipping and Handling Shipping and handling costs incurred were $194 million, $182 million, and $167 million in fiscal years 2014, 2013, and 2012, respectively, and are included in selling, general, and administrative expense in the consolidated statements of earnings. | |||||||||||||||||||||||
Research and Development Research and development costs are expensed when incurred. Research and development costs include costs of all basic research activities as well as other research, engineering, and technical effort required to develop a new product or service or make significant improvement to an existing product or manufacturing process. Research and development costs also include pre-approval regulatory and clinical trial expenses. | |||||||||||||||||||||||
Other Expense, Net Other expense, net includes royalty income and expense, realized equity security gains and losses, realized foreign currency transaction and derivative gains and losses, impairment charges on equity securities, the Puerto Rico excise tax, and the U.S. medical device excise tax. | |||||||||||||||||||||||
Stock-Based Compensation The Company’s compensation programs include share-based payments. All awards under share-based payment programs are accounted for at fair value and these fair values are generally amortized on a straight-line basis over the vesting terms into cost of products sold, research and development expense, and selling, general, and administrative expense in the consolidated statements of earnings, as appropriate. Refer to Note 12 for additional information. | |||||||||||||||||||||||
Foreign Currency Translation Assets and liabilities of non-U.S. dollar functional currency entities are translated to U.S. dollars at period-end exchange rates, and the resulting gains and losses arising from the translation of those net assets are recorded as a cumulative translation adjustment, a component of accumulated other comprehensive loss on the consolidated balance sheets. Elements of the consolidated statements of earnings are translated at average currency exchange rates in effect during the period and foreign currency transaction gains and losses are included in other expense, net in the consolidated statements of earnings. | |||||||||||||||||||||||
Comprehensive Income and Accumulated Other Comprehensive Loss In addition to net earnings, comprehensive income includes changes in currency exchange rate translation adjustments, unrealized gains and losses on currency exchange rate derivative contracts and interest rate derivative instruments qualifying and designated as cash flow hedges, net changes in retirement obligation funded status, and unrealized gains and losses on available-for-sale marketable securities. Taxes are not provided on cumulative translation adjustments as substantially all translation adjustments relate to earnings that are intended to be indefinitely reinvested outside the U.S. | |||||||||||||||||||||||
Presented below is a summary of activity for each component of accumulated other comprehensive loss for fiscal years 2013 and 2012: | |||||||||||||||||||||||
(in millions) | Unrealized | Cumulative | Net Change | Unrealized | Accumulated | ||||||||||||||||||
Gain (Loss) | Translation | in | Gain (Loss) | Other | |||||||||||||||||||
on | Adjustments | Retirement | on | Comprehensive | |||||||||||||||||||
Available-for- | Obligations | Derivatives | Loss | ||||||||||||||||||||
Sale Securities | |||||||||||||||||||||||
Balance as of April 29, 2011 | $ | 196 | $ | 443 | $ | (607 | ) | $ | (256 | ) | $ | (224 | ) | ||||||||||
Other comprehensive (loss) income | (66 | ) | (137 | ) | (227 | ) | 181 | (249 | ) | ||||||||||||||
Balance as of April 27, 2012 | $ | 130 | $ | 306 | $ | (834 | ) | $ | (75 | ) | $ | (473 | ) | ||||||||||
Other comprehensive (loss) income | (33 | ) | (21 | ) | (18 | ) | 53 | (19 | ) | ||||||||||||||
Correction of classification | — | (80 | ) | — | 80 | — | |||||||||||||||||
Balance as of April 26, 2013 | $ | 97 | $ | 205 | $ | (852 | ) | $ | 58 | $ | (492 | ) | |||||||||||
Included in cumulative translation adjustments is translation on certain foreign exchange rate derivatives held by non-U.S. dollar functional currency entities. In fiscal year 2014, the Company corrected the classification of cumulative translation of the unrealized gains (losses) on certain foreign exchange rate derivatives held by non-U.S. dollar functional currency entities from cumulative translation adjustment (CTA) to unrealized gain (loss) on derivatives. The Company has applied this change retrospectively to April 26, 2013 as a correction of the classification in the table above. In the first quarter of fiscal year 2014, the Company prospectively adopted guidance issued that requires additional disclosure related to the impact of reclassification adjustments out of accumulated other comprehensive income (loss) on net income. The required disclosures are included in Note 16. | |||||||||||||||||||||||
Refer to the consolidated statements of comprehensive income for additional information. | |||||||||||||||||||||||
Derivatives U.S. GAAP requires companies to recognize all derivatives as assets and liabilities on the balance sheet and to measure the instruments at fair value through earnings unless the derivative qualifies as a hedge. If the derivative is a hedge, depending on the nature of the hedge and hedge effectiveness, changes in the fair value of the derivative will either be recognized currently through earnings or recorded in other comprehensive income (loss) until the hedged item is recognized in earnings upon settlement/termination. The changes in the fair value of the derivative are intended to offset the change in fair value of the hedged asset, liability, or probable commitment. The Company evaluates hedge effectiveness at inception and on an ongoing basis. If a derivative is no longer expected to be highly effective, hedge accounting is discontinued. Hedge ineffectiveness, if any, is recorded in earnings. | |||||||||||||||||||||||
The Company uses operational and economic hedges, as well as currency exchange rate derivative contracts and interest rate derivative instruments, to manage the impact of currency exchange and interest rate changes on earnings and cash flows. In order to minimize earnings and cash flow volatility resulting from currency exchange rate changes, the Company enters into derivative instruments, principally forward currency exchange rate contracts. These contracts are designed to hedge anticipated foreign currency transactions and changes in the value of specific assets and liabilities. At inception of the forward contract, the derivative is designated as either a freestanding derivative or a cash flow hedge. The primary currencies of the derivative instruments are the Euro and Japanese Yen. The Company does not enter into currency exchange rate derivative contracts for speculative purposes. All derivative instruments are recorded at fair value on the consolidated balance sheets, as a component of prepaid expenses and other current assets, other assets, other accrued expenses, or other long-term liabilities depending upon the gain or loss position of the contract and contract maturity date. | |||||||||||||||||||||||
Forward contracts designated as cash flow hedges are designed to hedge the variability of cash flows associated with forecasted transactions denominated in a foreign currency that will take place in the future. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive loss. The effective portion of the gain or loss on the derivative instrument is reclassified into earnings and is included in other expense, net or cost of products sold in the consolidated statements of earnings, depending on the underlying transaction that is being hedged, in the same period or periods during which the hedged transaction affects earnings. The cash flows from these contracts are reported as operating activities in the consolidated statements of cash flows. | |||||||||||||||||||||||
The Company uses freestanding derivative forward contracts to offset its exposure to the change in value of specific foreign currency denominated assets and liabilities. These derivatives are not designated as hedges, and therefore, changes in the value of these forward contracts are recognized in earnings, thereby offsetting the current earnings effect of the related change in value of foreign currency denominated assets and liabilities. | |||||||||||||||||||||||
The Company uses forward starting interest rate derivative instruments designated as cash flow hedges to manage the exposure to interest rate volatility with regard to future issuances of fixed-rate debt. The effective portion of the gains or losses on the forward starting interest rate derivative instruments that are designated and qualify as cash flow hedges are reported as a component of accumulated other comprehensive loss. Beginning in the period in which the planned debt issuance occurs and the related derivative instruments are terminated, the effective portion of the gains or losses are then reclassified into interest expense, net over the term of the related debt. Any portion of the gains or losses that are determined to be ineffective are immediately recognized in interest expense, net. The cash flows from these contracts are reported as operating activities in the consolidated statements of cash flows. | |||||||||||||||||||||||
The Company uses interest rate derivative instruments designated as fair value hedges to manage the exposure to interest rate movements and to reduce borrowing costs by converting fixed-rate debt into floating-rate debt. Under these agreements, the Company agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to agreed-upon notional principal amounts. Changes in the fair value of the derivative instrument are recorded in interest expense, net, and are offset by changes in the fair value on the underlying debt instrument. The cash flows from these contracts are reported as operating activities in the consolidated statements of cash flows. The gains (losses) from terminated interest rate swap agreements are recorded in long-term debt, increasing (decreasing) the outstanding balances of the debt, and amortized as a reduction (addition) of interest expense, net over the remaining life of the related debt. The cash flows from the termination of the interest rate swap agreements are reported as operating activities in the consolidated statements of cash flows. | |||||||||||||||||||||||
In addition, the Company has collateral credit agreements with its primary derivative counterparties. Under these agreements, either party is required to post eligible collateral when the market value of transactions covered by the agreement exceeds specific thresholds, thus limiting credit exposure for both parties. | |||||||||||||||||||||||
Earnings Per Share Basic earnings per share is computed based on the weighted average number of common shares outstanding. Diluted earnings per share is computed based on the weighted average number of common shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued, and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive shares. Potentially dilutive shares of common stock include stock options and other stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. | |||||||||||||||||||||||
The table below sets forth the computation of basic and diluted earnings per share: | |||||||||||||||||||||||
Fiscal Year | |||||||||||||||||||||||
(in millions, except per share data) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Earnings from continuing operations | $ | 3,065 | $ | 3,467 | $ | 3,415 | |||||||||||||||||
Earnings from discontinued operations | — | — | 202 | ||||||||||||||||||||
Net earnings | 3,065 | 3,467 | 3,617 | ||||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Basic – weighted average shares outstanding | 1,002.10 | 1,019.30 | 1,053.90 | ||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Employee stock options | 7.1 | 2.8 | 0.9 | ||||||||||||||||||||
Employee restricted stock units | 4.3 | 5.3 | 4.9 | ||||||||||||||||||||
Other | 0.1 | 0.1 | 0.2 | ||||||||||||||||||||
Diluted – weighted average shares outstanding | 1,013.60 | 1,027.50 | 1,059.90 | ||||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||
Earnings from continuing operations | $ | 3.06 | $ | 3.4 | $ | 3.24 | |||||||||||||||||
Earnings from discontinued operations | $ | — | $ | — | $ | 0.19 | |||||||||||||||||
Net earnings | $ | 3.06 | $ | 3.4 | $ | 3.43 | |||||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||
Earnings from continuing operations | $ | 3.02 | $ | 3.37 | $ | 3.22 | |||||||||||||||||
Earnings from discontinued operations | $ | — | $ | — | $ | 0.19 | |||||||||||||||||
Net earnings | $ | 3.02 | $ | 3.37 | $ | 3.41 | |||||||||||||||||
The calculation of weighted average diluted shares outstanding excludes options for approximately 5 million, 38 million, and 51 million shares of common stock in fiscal years 2014, 2013, and 2012, respectively, because their effect would be anti-dilutive on the Company’s earnings per share. | |||||||||||||||||||||||
New Accounting Standards | |||||||||||||||||||||||
Recently Adopted | |||||||||||||||||||||||
In December 2011 and January 2013, the Financial Accounting Standards Board (FASB) issued new accounting guidance related to disclosures on offsetting assets and liabilities on the balance sheet. This newly issued accounting standard requires an entity to disclose both gross and net information about instruments and transactions eligible for offset in the balance sheet as well as instruments and transactions executed under a master netting or similar arrangement and was issued to enable users of financial statements to understand the effects or potential effects of those arrangements on its financial position. The Company retrospectively adopted this accounting guidance in the first quarter of fiscal year 2014. The required disclosures are included in Note 9. Since the accounting guidance only requires disclosure, its adoption did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||||
In July 2012, the FASB updated the accounting guidance related to annual and interim indefinite-lived intangible asset impairment testing. The updated accounting guidance allows entities to first assess qualitative factors before performing a quantitative assessment of the fair value of indefinite-lived intangible assets. If it is determined on the basis of qualitative factors that the fair value of indefinite-lived intangible assets is more likely than not less than the carrying amount, the existing quantitative impairment test is required. Otherwise, no further impairment testing is required. The Company adopted this accounting guidance in the first quarter of fiscal year 2014 and its adoption did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||||
In February 2013, the FASB expanded the disclosure requirements with respect to changes in accumulated other comprehensive income (AOCI). Under this new guidance, companies are required to disclose the amount of income (or loss) reclassified out of AOCI to each respective line item on the statements of earnings where net income is presented. The guidance allows companies to elect whether to disclose the reclassification either in the notes to the financial statements or parenthetically on the face of the financial statements. In the first quarter of fiscal year 2014, the Company prospectively adopted this guidance. The required disclosures are included in Note 16. Since the accounting guidance only impacts disclosure requirements, its adoption did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||||
Not Yet Adopted | |||||||||||||||||||||||
In March 2013, the FASB issued amended guidance on a parent company’s accounting for the CTA recorded in AOCI associated with a foreign entity. The amendment requires a parent to release into net income the CTA related to its investment in a foreign entity when it either sells a part or all of its investment, or no longer holds a controlling financial interest, in a subsidiary or group of assets within a foreign entity. This accounting guidance is effective for the Company beginning in the first quarter of fiscal year 2015. Subsequent to adoption, this amended guidance would impact the Company’s financial position and results of operations prospectively in the instance of an event or transaction described above. | |||||||||||||||||||||||
In July 2013, the FASB issued amended guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. The guidance requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented as a reduction of a deferred tax asset when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists, with certain exceptions. This accounting guidance is effective prospectively for the Company beginning in the first quarter of fiscal year 2015. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||||
In April 2014, the FASB issued amended guidance for reporting discontinued operations. The amended guidance changes the criteria for determining when the results of operations are to be reported as discontinued operations and expands the related disclosure requirements. The guidance defines a discontinued operation as a disposal of a component or group of components that is disposed of or classified as held for sale which is a strategic shift that has, or will have, a major effect on financial position and results of operations. This accounting guidance is effective prospectively for the Company beginning in the first quarter of fiscal year 2016, with early adoption permitted. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||||
In May 2014, the FASB issued amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance is effective for the Company beginning in the first quarter of fiscal year 2018 using one of two prescribed retrospective methods. Early adoption is not permitted. The Company is evaluating the impact of the amended revenue recognition guidance on the Company’s consolidated financial statements. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Apr. 25, 2014 | |
Equity [Abstract] | ' |
Shareholders' Equity | ' |
11. Shareholders’ Equity | |
Shares are repurchased from time to time to support the Company’s stock-based compensation programs and to return capital to shareholders. In June 2013 and June 2011, the Company’s Board of Directors authorized the repurchase of 80 million and 75 million shares of the Company’s common stock, respectively. During fiscal years 2014 and 2013, the Company repurchased approximately 47.8 million and 31.2 million shares at an average price of $53.37 and $39.97, respectively. As of April 25, 2014, the Company had used the entire amount authorized under the June 2011 repurchase program and 20.6 million of the 80 million shares authorized under the June 2013 repurchase program, leaving 59.4 million shares available for future repurchases. The Company accounts for repurchases of common stock using the par value method and shares repurchased are canceled. |
Leases
Leases | 12 Months Ended | ||||||||
Apr. 25, 2014 | |||||||||
Leases [Abstract] | ' | ||||||||
Leases | ' | ||||||||
15. Leases | |||||||||
The Company leases office, manufacturing, and research facilities and warehouses, as well as transportation, data processing, and other equipment under capital and operating leases. A substantial number of these leases contain options that allow the Company to renew at the fair rental value on the date of renewal. | |||||||||
Future minimum payments under capitalized leases and non-cancelable operating leases at April 25, 2014 are: | |||||||||
(in millions) | Capitalized | Operating | |||||||
Fiscal Year | Leases | Leases | |||||||
2015 | $ | 18 | $ | 112 | |||||
2016 | 17 | 77 | |||||||
2017 | 34 | 45 | |||||||
2018 | 22 | 21 | |||||||
2019 | 22 | 13 | |||||||
Thereafter | 64 | 23 | |||||||
Total minimum lease payments | $ | 177 | $ | 291 | |||||
Less amounts representing interest | (24 | ) | N/A | ||||||
Present value of net minimum lease payments | $ | 153 | N/A | ||||||
Rent expense for all operating leases, including discontinued operations in prior years, was $150 million, $140 million, and $153 million in fiscal years 2014, 2013, and 2012, respectively. | |||||||||
In April 2012, the Company entered into a $165 million sale-leaseback agreement with a financial institution whereby certain manufacturing equipment was sold to the financial institution and is being leased by the Company over a ten-year period. The transaction was recorded as a capital lease and is included in the table above. Payments for the remaining balance of the sale-leaseback agreement are due monthly for the first five years, and then annually, for the remaining five years. The lease provides for an early buyout option whereby the Company, at its option, could repurchase the equipment at a pre-determined fair market value in calendar year 2017. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||
Apr. 25, 2014 | |||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||
Discontinued Operations | ' | ||||
17. Discontinued Operations | |||||
Beginning in the third quarter of fiscal year 2012, the results of operations, assets, and liabilities of the Physio-Control business, which were previously presented as a component of the Cardiac and Vascular Group operating segment, are classified as discontinued operations. | |||||
On January 30, 2012, the Company completed the sale of the Physio-Control business to Bain Capital Partners, LLC. The Company sold $164 million in net assets and received $386 million in net cash. Additionally, the Company entered into a Transition Services Agreement (TSA) with Physio-Control in which the Company provided transition services for Physio-Control through fiscal year 2013 as it established standalone processes separate from Medtronic. The TSA required the Company to continue to provide certain back-office support functions to Physio-Control in the areas of finance, facilities, human resources, customer service, IT, quality and regulatory, and operations. The Company was compensated for the services specified in the TSA. The Company recorded the income earned from the TSA in other expense, net in the consolidated statements of earnings. | |||||
The following is a summary of the operating results of Physio-Control for discontinued operations for fiscal year 2012: | |||||
(in millions) | 2012 | ||||
Discontinued operations: | |||||
Net sales | $ | 323 | |||
Earnings from operations of Physio-Control | $ | 48 | |||
Physio-Control divestiture-related costs | (42 | ) | |||
Gain on sale of Physio-Control | 218 | ||||
Income tax expense | (22 | ) | |||
Earnings from discontinued operations | $ | 202 | |||
In the fourth quarter of fiscal year 2012, the Company recognized a pre-tax gain on sale of $218 million, which included a reversal of the portion of the Company’s currency translation adjustment related to Physio-Control. Additionally, during fiscal year 2012, the Company recorded $42 million of Physio-Control divestiture-related costs in discontinued operations. The Company reclassified $12 million of Physio-Control divestiture-related costs previously recorded in acquisition-related items within continuing operations on the consolidated statements of earnings in the first and second quarters of fiscal year 2012 to discontinued operations. |
Quarterly_Financial_Data_unaud
Quarterly Financial Data (unaudited) | 12 Months Ended | ||||||||||||||||||||||||
Apr. 25, 2014 | |||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Quarterly Financial Data (unaudited) | ' | ||||||||||||||||||||||||
19. Quarterly Financial Data (unaudited) | |||||||||||||||||||||||||
(in millions, | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Fiscal Year | ||||||||||||||||||||
except per share data) | |||||||||||||||||||||||||
Net Sales | |||||||||||||||||||||||||
2014 | $ | 4,083 | $ | 4,194 | $ | 4,163 | $ | 4,566 | $ | 17,005 | |||||||||||||||
2013 | 4,008 | 4,095 | 4,027 | 4,459 | 16,590 | ||||||||||||||||||||
Gross Profit | |||||||||||||||||||||||||
2014 | $ | 3,061 | $ | 3,104 | $ | 3,113 | $ | 3,395 | $ | 12,672 | |||||||||||||||
2013 | 3,035 | 3,075 | 3,028 | 3,325 | 12,464 | ||||||||||||||||||||
Net Earnings | |||||||||||||||||||||||||
2014 | $ | 953 | $ | 902 | $ | 762 | $ | 448 | $ | 3,065 | |||||||||||||||
2013 | 864 | 646 | 988 | 969 | 3,467 | ||||||||||||||||||||
Basic Earnings per Share | |||||||||||||||||||||||||
2014 | $ | 0.94 | $ | 0.9 | $ | 0.76 | $ | 0.45 | 3.06 | ||||||||||||||||
2013 | 0.84 | 0.63 | 0.98 | 0.96 | 3.4 | ||||||||||||||||||||
Diluted Earnings per Share | |||||||||||||||||||||||||
2014 | $ | 0.93 | $ | 0.89 | $ | 0.75 | $ | 0.44 | 3.02 | ||||||||||||||||
2013 | 0.83 | 0.63 | 0.97 | 0.95 | 3.37 | ||||||||||||||||||||
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. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||||||
Apr. 25, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||||||||
SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Balance at | Additions | Deductions | Balance | ||||||||||||||||||
Beginning of | at End of | ||||||||||||||||||||
Fiscal Year* | Charges to | Charges to Other | Other | Fiscal Year* | |||||||||||||||||
Earnings* | Accounts* | Changes | |||||||||||||||||||
(Debit) Credit* | |||||||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||||||
Year ended 4/25/14 | $ | 98 | $ | 43 | $ | — | $ | (30 | ) (a) | $ | 115 | ||||||||||
$ | 4 | (b) | |||||||||||||||||||
Year ended 4/26/13 | $ | 100 | $ | 51 | $ | — | $ | (53 | ) (a) | $ | 98 | ||||||||||
$ | — | (b) | |||||||||||||||||||
Year ended 4/27/12 | $ | 97 | $ | 66 | $ | — | $ | (55 | ) (a) | $ | 100 | ||||||||||
$ | (8 | ) (b) | |||||||||||||||||||
Deferred tax valuation allowance: | |||||||||||||||||||||
Year ended 4/25/14 | $ | 313 | $ | 104 | $ | 5 | $ | (29 | ) (c) | $ | 397 | ||||||||||
$ | 4 | (b) | |||||||||||||||||||
Year ended 4/26/13 | $ | 258 | $ | 71 | $ | — | $ | (15 | ) (c) | $ | 313 | ||||||||||
$ | (1 | ) (b) | |||||||||||||||||||
Year ended 4/27/12 | $ | 286 | $ | 49 | $ | — | $ | (77 | ) (c) | $ | 258 | ||||||||||
$ | — | (b) | |||||||||||||||||||
* For the fiscal year ended April 27, 2012, amounts include the results from both continuing operations and discontinued operations. | |||||||||||||||||||||
(a) Uncollectible accounts written off, less recoveries. | |||||||||||||||||||||
(b) Reflects primarily the effects of foreign currency fluctuations. | |||||||||||||||||||||
(c) Decrease in deferred tax valuation allowance due to carryover attribute utilization and expiration. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended | 12 Months Ended | ||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ' | ||||||||
Basis of Presentation | ' | ' | ||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S.) (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information necessary for a fair presentation of results of operations, comprehensive income, financial condition, and cash flows in conformity with U.S. GAAP. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of Medtronic, Inc. and its subsidiaries (Medtronic or the Company) for the periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. For further information, refer to the consolidated financial statements and notes thereto included in this joint proxy statement/prospectus beginning on page F-43. | ||||||||||
Fiscal Period | ' | ' | ||||||||
Fiscal Year-End The Company utilizes a 52/53-week fiscal year, ending the last Friday in April. The Company’s fiscal years 2014, 2013, and 2012 ended on April 25, 2014, April 26, 2013, and April 27, 2012, respectively, all of which were 52-week years. Fiscal year 2016 is the next 53-week year. | ||||||||||
Medtronic’s fiscal years 2015, 2014, and 2013 will end or ended on April 24, 2015, April 25, 2014, and April 26, 2013, respectively | ||||||||||
Nature of Operations | ' | ' | ||||||||
Nature of Operations Medtronic, Inc. (Medtronic or the Company) is the global leader in medical technology – alleviating pain, restoring health, and extending life for millions of people around the world. The Company provides innovative products and therapies for use by medical professionals to meet the health care needs of their patients. Primary products include those for cardiac rhythm disorders, cardiovascular disease, neurological disorders, spinal conditions and musculoskeletal trauma, urological and digestive disorders, and ear, nose, and throat and diabetes conditions. | ||||||||||
The Company is headquartered in Minneapolis, Minnesota, and markets its products primarily through a direct sales force in the United States (U.S.) and a combination of direct sales representatives and independent distributors in international markets. The primary markets for products are the U.S., Western Europe, Japan, and emerging markets. | ||||||||||
Principles of Consolidation | ' | ' | ||||||||
Principles of Consolidation The consolidated financial statements include the accounts of Medtronic, Inc., and its consolidated subsidiaries. All significant intercompany transactions and accounts have been eliminated. U.S. generally accepted accounting principles (U.S. GAAP) are applied when determining whether an entity is subject to consolidation. | ||||||||||
Beginning in the third quarter of fiscal year 2012, the results of operations, assets, and liabilities of the Physio-Control business, which were previously presented as a component of the Cardiac and Vascular Group operating segment, are classified as discontinued operations. All information in the following notes to the consolidated financial statements includes only results from continuing operations (excluding Physio-Control) for all periods presented, unless otherwise noted. For further information regarding discontinued operations, see Note 17. | ||||||||||
Use of Estimates | ' | ' | ||||||||
Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ materially from those estimates. | ||||||||||
Cash Equivalents | ' | ' | ||||||||
Cash Equivalents The Company considers highly liquid investments with maturities of three months or less from the date of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value. | ||||||||||
Investments | ' | ' | ||||||||
Investments Investments in marketable equity securities and debt securities are classified and accounted for as available-for-sale. Debt securities include corporate debt securities, U.S. and foreign government and agency securities, certificates of deposit, mortgage-backed securities, other asset-backed securities, debt funds, and auction rate securities. These investments are recorded at fair value in the consolidated balance sheets. The change in fair value for available-for-sale securities is recorded, net of taxes, as a component of accumulatedother comprehensive loss on the consolidated balance sheets. Management determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. The classification of marketable securities as current or long-term is based on the nature of the securities and their availability for use in current operations consistent with how the Company manages its capital structure and liquidity. | ||||||||||
Investments in securities that are classified and accounted for as trading securities include exchange-traded funds and are recorded at fair value on the consolidated balance sheets. The Company’s trading securities seek to offset changes in liabilities related to equity and other market risks of certain deferred compensation arrangements. The change in fair value for trading securities is recorded as a component of interest expense, net on the consolidated statements of earnings. | ||||||||||
Certain of the Company’s investments in equity and other securities are long-term, strategic investments in companies that are in varied stages of development. The Company accounts for these investments under the cost or the equity method of accounting, as appropriate. These investments are included in other assets on the consolidated balance sheets. The valuation of equity and other securities accounted for under the cost method considers all available financial information related to the investee, including valuations based on recent third-party equity investments in the investee. If an unrealized loss for any investment is considered to be other-than-temporary, the loss will be recognized in the consolidated statements of earnings in the period the determination is made. Equity securities accounted for under the equity method are initially recorded at the amount of the Company’s investment and adjusted each period for the Company’s share of the investee’s income or loss and dividends paid. Equity securities accounted for under both the cost and equity methods are reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company’s investment may not be recoverable. See Note 5 for discussion of the gains and losses recognized on equity and other securities. | ||||||||||
Accounts Receivable | ' | ' | ||||||||
Accounts Receivable The Company grants credit to customers in the normal course of business, but generally does not require collateral or any other security to support its receivables. The Company maintains an allowance for doubtful accounts for potential credit losses. Uncollectible accounts are written off against the allowance when it is deemed that a customer account is uncollectible. | ||||||||||
Inventories | ' | ' | ||||||||
Inventories Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as follows: | ||||||||||
(in millions) | April 25, | April 26, | ||||||||
2014 | 2013 | |||||||||
Finished goods | $ | 1,196 | $ | 1,174 | ||||||
Work in process | 247 | 248 | ||||||||
Raw materials | 282 | 290 | ||||||||
Total | $ | 1,725 | $ | 1,712 | ||||||
Property, Plant, and Equipment | ' | ' | ||||||||
Property, Plant, and Equipment Property, plant, and equipment is stated at cost. Additions and improvements that extend the lives of the assets are capitalized while expenditures for repairs and maintenance are expensed as incurred. Depreciation is provided using the straight-line method over the estimated useful lives of the various assets. | ||||||||||
Goodwill | ' | ' | ||||||||
Goodwill Goodwill is the excess of the purchase price (consideration) over the estimated fair value of net assets, including in-process research and development (IPR&D), of acquired businesses. In accordance with U.S. GAAP, goodwill is not amortized. The Company assesses the impairment of goodwill annually in the third quarter and whenever an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is done at a reporting unit level. An impairment loss is recognized when the carrying amount of the reporting unit’s net assets exceed the estimated fair value of the reporting unit. The estimated fair value is determined using a discounted future cash flow analysis. | ||||||||||
Other Intangible Assets | ' | ' | ||||||||
Other Intangible Assets Other intangible assets include patents, trademarks, purchased technology, and IPR&D (since April 25, 2009). Intangible assets with a definite life are amortized on a straight-line or accelerated basis, as appropriate, with estimated useful lives ranging from three to 20 years. Intangible assets with a definite life are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset (asset group) may not be recoverable. Indefinite-lived intangible assets are tested for impairment annually in the third quarter and whenever events or changes in circumstances indicate that the carrying amount may be impaired. Impairment is calculated as the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted future cash flow analysis. | ||||||||||
IPR&D | ' | ' | ||||||||
IPR&D During fiscal year 2010, the Company adopted authoritative guidance related to business combinations. Subsequent to the adoption of this guidance, IPR&D acquired in a business combination is capitalized at its fair value as an indefinite-lived intangible asset. Prior to the adoption of this guidance, IPR&D was immediately expensed. The adoption of the authoritative guidance did not change the requirement to expense IPR&D immediately with respect to asset acquisitions. IPR&D charges are included within acquisition-related items in the consolidated statements of earnings. IPR&D has an indefinite life and is not amortized until completion and development of the project, at which time the IPR&D becomes an amortizable asset. If the related project is not completed in a timely manner or the project is terminated or abandoned, the Company may have an impairment related to the IPR&D, calculated as the excess of the asset’s carrying value over its fair value. | ||||||||||
The Company’s policy defines IPR&D as the fair value of those projects for which the related products have not received regulatory approval and have no alternative future use. Determining the fair value of IPR&D acquired as part of a business combination requires the Company to make significant estimates. The fair value assigned to IPR&D is determined by estimating the future cash flows of each project or technology and discounting the net cash flows back to their present values. The discount rate used is determined at the time of measurement in accordance with accepted valuation methodologies. These methodologies include consideration of the risk of the project not achieving commercial feasibility. | ||||||||||
At the time of acquisition, the Company expects that all acquired IPR&D will reach technological feasibility, but there can be no assurance that the commercial viability of these products will actually be achieved. The nature of the efforts to develop the acquired technologies into commercially viable products consists principally of planning, designing, and conducting clinical trials necessary to obtain regulatory approvals. The risks associated with achieving commercialization include, but are not limited to, delay or failure to obtain regulatory approvals to conduct clinical trials, delay or failure to obtain required market clearances, or delays or issues with patent issuance, or validity and litigation. If commercial viability were not achieved, the Company would likely look to other alternatives to provide these therapies. | ||||||||||
Contingent Consideration | ' | ' | ||||||||
Contingent Consideration During fiscal year 2010, as mentioned above, the Company adopted authoritative guidance related to business combinations. Under this guidance, the Company must recognize contingent consideration at fair value at the acquisition date. Prior to the adoption of this guidance, contingent consideration was not included on the balance sheet and was recorded as incurred. The acquisition date fair value is measured based on the consideration expected to be transferred (probability-weighted), discounted back to present value. The discount rate used is determined at the time of measurement in accordance with accepted valuation methodologies. The fair value of the contingent consideration is remeasured at the estimated fair value at each reporting period with the change in fair value recognized as income or expense within acquisition-related items in the consolidated statements of earnings. Therefore, any changes in the fair value will impact the Company’s earnings in such reporting period thereby resulting in potential variability in the Company’s earnings until contingencies are resolved. | ||||||||||
Warranty Obligation | ' | ' | ||||||||
Warranty Obligation The Company offers a warranty on various products. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the net costs to repair or otherwise satisfy the claim. The Company includes the warranty obligation in other accrued expenses and other long-term liabilities on the Company’s consolidated balance sheets. The Company includes the covered costs associated with field actions, if any, in cost of products sold in the Company’s consolidated statements of earnings. | ||||||||||
Self-Insurance | ' | ' | ||||||||
Self-Insurance It is the Company’s policy to self-insure the vast majority of its insurable risks including medical and dental costs, disability coverage, physical loss to property, business interruptions, workers’ compensation, comprehensive general, and product liability. Insurance coverage is obtained for those risks required to be insured by law or contract. The Company uses claims data and historical experience, as applicable, to estimate liabilities associated with the exposures that the Company has self-insured. Based on historical loss trends, the Company believes that its self-insurance program accruals and its existing insurance coverage will be adequate to cover future losses. Historical trends, however, may not be indicative of future losses. These losses could have a material adverse impact on the Company’s consolidated financial statements. | ||||||||||
Retirement Benefit Plan Assumptions | ' | ' | ||||||||
Retirement Benefit Plan Assumptions The Company sponsors various retirement benefit plans, including defined benefit pension plans (pension benefits), post-retirement medical plans (post-retirement benefits), defined contribution savings plans, and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. Pension benefit costs include assumptions for the discount rate, retirement age, compensation rate increases, and the expected return on plan assets. Post-retirement medical benefit costs include assumptions for the discount rate, retirement age, expected return on plan assets, and health care cost trend rate assumptions. | ||||||||||
The Company evaluates the assumptions, including discount rate, retirement age, compensation rate increases, expected return on plan assets, and health care cost trend assumptions of its pension benefits and post-retirement benefits annually. In evaluating these assumptions, many factors are considered, including an evaluation of assumptions made by other companies, historical assumptions compared to actual results, current market conditions, asset allocations, and the views of leading financial advisors and economists. In evaluating the expected retirement age assumption, the Company considers the retirement ages of past employees eligible for pension and medical benefits together with expectations of future retirement ages. Refer to Note 14 for additional information regarding the Company’s retirement benefit plans. | ||||||||||
Revenue Recognition | ' | ' | ||||||||
Revenue Recognition The Company sells its products primarily through a direct sales force in the U.S. and a combination of direct sales representatives and independent distributors in international markets. The Company recognizes revenue when title to the goods and risk of loss transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters requiring customer acceptance. In cases where the Company utilizes distributors or ships product directly to the end user, it recognizes revenue upon shipment provided all revenue recognition criteria have been met. A portion of the Company’s revenue is generated from inventory maintained at hospitals or with field representatives. For these products, revenue is recognized at the time the product has been used or implanted. The Company records estimated sales returns, discounts, and rebates as a reduction of net sales in the same period revenue is recognized. | ||||||||||
For multiple-element arrangements, the Company allocates arrangement consideration to the deliverables by use of the relative selling price method. The selling price used for each deliverable is based on vendor–specific objective evidence (VSOE) if available, third–party evidence (TPE) if VSOE is not available, or best estimated selling price (BESP) if neither VSOE nor TPE is available. BESP is determined in a manner consistent with that used to establish the price to sell the deliverable on a standalone basis. | ||||||||||
Shipping and Handling Shipping and handling costs incurred were $194 million, $182 million, and $167 million in fiscal years 2014, 2013, and 2012, respectively, and are included in selling, general, and administrative expense in the consolidated statements of earnings. | ||||||||||
Shipping and Handling | ' | ' | ||||||||
Shipping and Handling Shipping and handling costs incurred were $194 million, $182 million, and $167 million in fiscal years 2014, 2013, and 2012, respectively, and are included in selling, general, and administrative expense in the consolidated statements of earnings. | ||||||||||
Research and Development | ' | ' | ||||||||
Research and Development Research and development costs are expensed when incurred. Research and development costs include costs of all basic research activities as well as other research, engineering, and technical effort required to develop a new product or service or make significant improvement to an existing product or manufacturing process. Research and development costs also include pre-approval regulatory and clinical trial expenses. | ||||||||||
Other Expense, Net | ' | ' | ||||||||
Other Expense, Net Other expense, net includes royalty income and expense, realized equity security gains and losses, realized foreign currency transaction and derivative gains and losses, impairment charges on equity securities, the Puerto Rico excise tax, and the U.S. medical device excise tax. | ||||||||||
Stock-Based Compensation | ' | ' | ||||||||
Stock-Based Compensation The Company’s compensation programs include share-based payments. All awards under share-based payment programs are accounted for at fair value and these fair values are generally amortized on a straight-line basis over the vesting terms into cost of products sold, research and development expense, and selling, general, and administrative expense in the consolidated statements of earnings, as appropriate. Refer to Note 12 for additional information. | ||||||||||
Foreign Currency Translation | ' | ' | ||||||||
Foreign Currency Translation Assets and liabilities of non-U.S. dollar functional currency entities are translated to U.S. dollars at period-end exchange rates, and the resulting gains and losses arising from the translation of those net assets are recorded as a cumulative translation adjustment, a component of accumulated other comprehensive loss on the consolidated balance sheets. Elements of the consolidated statements of earnings are translated at average currency exchange rates in effect during the period and foreign currency transaction gains and losses are included in other expense, net in the consolidated statements of earnings. | ||||||||||
Comprehensive Income and Accumulated Other Comprehensive Loss | ' | ' | ||||||||
Comprehensive Income and Accumulated Other Comprehensive Loss In addition to net earnings, comprehensive income includes changes in currency exchange rate translation adjustments, unrealized gains and losses on currency exchange rate derivative contracts and interest rate derivative instruments qualifying and designated as cash flow hedges, net changes in retirement obligation funded status, and unrealized gains and losses on available-for-sale marketable securities. Taxes are not provided on cumulative translation adjustments as substantially all translation adjustments relate to earnings that are intended to be indefinitely reinvested outside the U.S. | ||||||||||
Derivatives | ' | ' | ||||||||
Derivatives U.S. GAAP requires companies to recognize all derivatives as assets and liabilities on the balance sheet and to measure the instruments at fair value through earnings unless the derivative qualifies as a hedge. If the derivative is a hedge, depending on the nature of the hedge and hedge effectiveness, changes in the fair value of the derivative will either be recognized currently through earnings or recorded in other comprehensive income (loss) until the hedged item is recognized in earnings upon settlement/termination. The changes in the fair value of the derivative are intended to offset the change in fair value of the hedged asset, liability, or probable commitment. The Company evaluates hedge effectiveness at inception and on an ongoing basis. If a derivative is no longer expected to be highly effective, hedge accounting is discontinued. Hedge ineffectiveness, if any, is recorded in earnings. | ||||||||||
The Company uses operational and economic hedges, as well as currency exchange rate derivative contracts and interest rate derivative instruments, to manage the impact of currency exchange and interest rate changes on earnings and cash flows. In order to minimize earnings and cash flow volatility resulting from currency exchange rate changes, the Company enters into derivative instruments, principally forward currency exchange rate contracts. These contracts are designed to hedge anticipated foreign currency transactions and changes in the value of specific assets and liabilities. At inception of the forward contract, the derivative is designated as either a freestanding derivative or a cash flow hedge. The primary currencies of the derivative instruments are the Euro and Japanese Yen. The Company does not enter into currency exchange rate derivative contracts for speculative purposes. All derivative instruments are recorded at fair value on the consolidated balance sheets, as a component of prepaid expenses and other current assets, other assets, other accrued expenses, or other long-term liabilities depending upon the gain or loss position of the contract and contract maturity date. | ||||||||||
Forward contracts designated as cash flow hedges are designed to hedge the variability of cash flows associated with forecasted transactions denominated in a foreign currency that will take place in the future. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive loss. The effective portion of the gain or loss on the derivative instrument is reclassified into earnings and is included in other expense, net or cost of products sold in the consolidated statements of earnings, depending on the underlying transaction that is being hedged, in the same period or periods during which the hedged transaction affects earnings. The cash flows from these contracts are reported as operating activities in the consolidated statements of cash flows. | ||||||||||
The Company uses freestanding derivative forward contracts to offset its exposure to the change in value of specific foreign currency denominated assets and liabilities. These derivatives are not designated as hedges, and therefore, changes in the value of these forward contracts are recognized in earnings, thereby offsetting the current earnings effect of the related change in value of foreign currency denominated assets and liabilities. | ||||||||||
The Company uses forward starting interest rate derivative instruments designated as cash flow hedges to manage the exposure to interest rate volatility with regard to future issuances of fixed-rate debt. The effective portion of the gains or losses on the forward starting interest rate derivative instruments that are designated and qualify as cash flow hedges are reported as a component of accumulated other comprehensive loss. Beginning in the period in which the planned debt issuance occurs and the related derivative instruments are terminated, the effective portion of the gains or losses are then reclassified into interest expense, net over the term of the related debt. Any portion of the gains or losses that are determined to be ineffective are immediately recognized in interest expense, net. The cash flows from these contracts are reported as operating activities in the consolidated statements of cash flows. | ||||||||||
The Company uses interest rate derivative instruments designated as fair value hedges to manage the exposure to interest rate movements and to reduce borrowing costs by converting fixed-rate debt into floating-rate debt. Under these agreements, the Company agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to agreed-upon notional principal amounts. Changes in the fair value of the derivative instrument are recorded in interest expense, net, and are offset by changes in the fair value on the underlying debt instrument. The cash flows from these contracts are reported as operating activities in the consolidated statements of cash flows. The gains (losses) from terminated interest rate swap agreements are recorded in long-term debt, increasing (decreasing) the outstanding balances of the debt, and amortized as a reduction (addition) of interest expense, net over the remaining life of the related debt. The cash flows from the termination of the interest rate swap agreements are reported as operating activities in the consolidated statements of cash flows. | ||||||||||
In addition, the Company has collateral credit agreements with its primary derivative counterparties. Under these agreements, either party is required to post eligible collateral when the market value of transactions covered by the agreement exceeds specific thresholds, thus limiting credit exposure for both parties. | ||||||||||
Earnings Per Share | ' | ' | ||||||||
Earnings Per Share Basic earnings per share is computed based on the weighted average number of common shares outstanding. Diluted earnings per share is computed based on the weighted average number of common shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued, and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive shares. Potentially dilutive shares of common stock include stock options and other stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. | ||||||||||
New Accounting Standards | ' | ' | ||||||||
New Accounting Standards | ||||||||||
Recently Adopted | ||||||||||
In December 2011 and January 2013, the Financial Accounting Standards Board (FASB) issued new accounting guidance related to disclosures on offsetting assets and liabilities on the balance sheet. This newly issued accounting standard requires an entity to disclose both gross and net information about instruments and transactions eligible for offset in the balance sheet as well as instruments and transactions executed under a master netting or similar arrangement and was issued to enable users of financial statements to understand the effects or potential effects of those arrangements on its financial position. The Company retrospectively adopted this accounting guidance in the first quarter of fiscal year 2014. The required disclosures are included in Note 9. Since the accounting guidance only requires disclosure, its adoption did not have a material impact on the Company’s consolidated financial statements. | ||||||||||
In July 2012, the FASB updated the accounting guidance related to annual and interim indefinite-lived intangible asset impairment testing. The updated accounting guidance allows entities to first assess qualitative factors before performing a quantitative assessment of the fair value of indefinite-lived intangible assets. If it is determined on the basis of qualitative factors that the fair value of indefinite-lived intangible assets is more likely than not less than the carrying amount, the existing quantitative impairment test is required. Otherwise, no further impairment testing is required. The Company adopted this accounting guidance in the first quarter of fiscal year 2014 and its adoption did not have a material impact on the Company’s consolidated financial statements. | ||||||||||
In February 2013, the FASB expanded the disclosure requirements with respect to changes in accumulated other comprehensive income (AOCI). Under this new guidance, companies are required to disclose the amount of income (or loss) reclassified out of AOCI to each respective line item on the statements of earnings where net income is presented. The guidance allows companies to elect whether to disclose the reclassification either in the notes to the financial statements or parenthetically on the face of the financial statements. In the first quarter of fiscal year 2014, the Company prospectively adopted this guidance. The required disclosures are included in Note 16. Since the accounting guidance only impacts disclosure requirements, its adoption did not have a material impact on the Company’s consolidated financial statements. | ||||||||||
Not Yet Adopted | ||||||||||
In March 2013, the FASB issued amended guidance on a parent company’s accounting for the CTA recorded in AOCI associated with a foreign entity. The amendment requires a parent to release into net income the CTA related to its investment in a foreign entity when it either sells a part or all of its investment, or no longer holds a controlling financial interest, in a subsidiary or group of assets within a foreign entity. This accounting guidance is effective for the Company beginning in the first quarter of fiscal year 2015. Subsequent to adoption, this amended guidance would impact the Company’s financial position and results of operations prospectively in the instance of an event or transaction described above. | ||||||||||
In July 2013, the FASB issued amended guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. The guidance requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented as a reduction of a deferred tax asset when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists, with certain exceptions. This accounting guidance is effective prospectively for the Company beginning in the first quarter of fiscal year 2015. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. | ||||||||||
In April 2014, the FASB issued amended guidance for reporting discontinued operations. The amended guidance changes the criteria for determining when the results of operations are to be reported as discontinued operations and expands the related disclosure requirements. The guidance defines a discontinued operation as a disposal of a component or group of components that is disposed of or classified as held for sale which is a strategic shift that has, or will have, a major effect on financial position and results of operations. This accounting guidance is effective prospectively for the Company beginning in the first quarter of fiscal year 2016, with early adoption permitted. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. | ||||||||||
In May 2014, the FASB issued amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance is effective for the Company beginning in the first quarter of fiscal year 2018 using one of two prescribed retrospective methods. Early adoption is not permitted. The Company is evaluating the impact of the amended revenue recognition guidance on the Company’s consolidated financial statements. |
Acquisitions_and_AcquisitionRe1
Acquisitions and Acquisition-Related Items (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | ' | ' | ||||||||||||||||||||
The fair values of the assets acquired and liabilities assumed are as follows: | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Current assets | $ | 6 | ||||||||||||||||||||
Property, plant, and equipment | 1 | |||||||||||||||||||||
Intangible assets | 94 | |||||||||||||||||||||
Goodwill | 132 | |||||||||||||||||||||
Total assets acquired | 233 | |||||||||||||||||||||
Current liabilities | 4 | |||||||||||||||||||||
Long-term deferred tax liabilities, net | 7 | |||||||||||||||||||||
Total liabilities assumed | 11 | |||||||||||||||||||||
Net assets acquired | $ | 222 | ||||||||||||||||||||
Fair Value Inputs, Liabilities, Quantitative Information | ' | ' | ||||||||||||||||||||
The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs: | ||||||||||||||||||||||
The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs: | ||||||||||||||||||||||
($ in millions) | Fair Value at | Valuation | Unobservable Input | Range | ||||||||||||||||||
April 25, 2014 | Technique | |||||||||||||||||||||
($ in millions) | Fair Value at | Valuation | Unobservable Input | Range | Discount rate | 13.5% - 24% | ||||||||||||||||
July 25, 2014 | Technique | Revenue-based payments | $ | 43 | Discounted cash flow | Probability of payment | 100% | |||||||||||||||
Discount rate | 13.5% - 24% | Projected fiscal year of payment | 2015 - 2019 | |||||||||||||||||||
Revenue-based payments | $ | 62 | Discounted cash flow | Probability of payment | 100% | Discount rate | 5.50% | |||||||||||||||
Projected fiscal year of payment | 2015 - 2019 | Product development- | $ | 25 | Discounted cash flow | Probability of payment | 75% - 100% | |||||||||||||||
Discount rate | 5.50% | based payments | Projected fiscal year of payment | 2015 - 2018 | ||||||||||||||||||
Product development-based payments | $ | 25 | Discounted cash flow | Probability of payment | 75% | |||||||||||||||||
Projected fiscal year of payment | 2018 | |||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Contingent Consideration Associated with Acquisitions | ' | ' | ||||||||||||||||||||
The following table provides a reconciliation of the beginning and ending balances of contingent consideration associated with acquisitions subsequent to April 24, 2009: | ||||||||||||||||||||||
The following table provides a reconciliation of the beginning and ending balances of contingent consideration associated with acquisitions subsequent to April 24, 2009: | ||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||
Three months ended | Beginning Balance | $ | 142 | $ | 231 | |||||||||||||||||
(in millions) | July 25, 2014 | July 26, 2013 | Purchase price contingent consideration | 65 | 3 | |||||||||||||||||
Beginning Balance | $ | 68 | $ | 142 | Contingent consideration payments | (1 | ) | (30 | ) | |||||||||||||
Purchase price contingent consideration | 23 | — | Change in fair value of contingent consideration | (138 | ) | (62 | ) | |||||||||||||||
Contingent consideration payments | (5 | ) | (1 | ) | ||||||||||||||||||
Change in fair value of contingent consideration | 1 | (96 | ) | Ending Balance | $ | 68 | $ | 142 | ||||||||||||||
Ending Balance | $ | 87 | $ | 45 | ||||||||||||||||||
TYRX | ' | ' | ||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | ' | ||||||||||||||||||||
The fair values of the assets acquired and liabilities assumed are as follows: | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Current assets | $ | 6 | ||||||||||||||||||||
Property, plant, and equipment | 1 | |||||||||||||||||||||
Intangible assets | 94 | |||||||||||||||||||||
Goodwill | 132 | |||||||||||||||||||||
Total assets acquired | 233 | |||||||||||||||||||||
Current liabilities | 4 | |||||||||||||||||||||
Long-term deferred tax liabilities, net | 7 | |||||||||||||||||||||
Total liabilities assumed | 11 | |||||||||||||||||||||
Net assets acquired | $ | 222 | ||||||||||||||||||||
Cardiocom | ' | ' | ||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | ' | ||||||||||||||||||||
The fair values of the assets acquired and liabilities assumed are as follows: | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Current assets | $ | 14 | ||||||||||||||||||||
Property, plant, and equipment | 7 | |||||||||||||||||||||
Intangible assets | 61 | |||||||||||||||||||||
Goodwill | 123 | |||||||||||||||||||||
Total assets acquired | 205 | |||||||||||||||||||||
Current liabilities | 12 | |||||||||||||||||||||
Total liabilities assumed | 12 | |||||||||||||||||||||
Net assets acquired | $ | 193 | ||||||||||||||||||||
China Kanghui Holdings | ' | ' | ||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | ' | ||||||||||||||||||||
The fair values of the assets acquired and liabilities assumed are as follows: | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Current assets | $ | 106 | ||||||||||||||||||||
Property, plant, and equipment | 56 | |||||||||||||||||||||
Intangible assets | 341 | |||||||||||||||||||||
Goodwill | 409 | |||||||||||||||||||||
Other assets | 11 | |||||||||||||||||||||
Total assets acquired | 923 | |||||||||||||||||||||
Current liabilities | 29 | |||||||||||||||||||||
Long-term deferred tax liabilities, net | 77 | |||||||||||||||||||||
Other long-term liabilities | 1 | |||||||||||||||||||||
Total liabilities assumed | 107 | |||||||||||||||||||||
Net assets acquired | $ | 816 | ||||||||||||||||||||
Salient | ' | ' | ||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | ' | ||||||||||||||||||||
The fair values of the assets acquired and liabilities assumed are as follows: | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Current assets | $ | 20 | ||||||||||||||||||||
Property, plant, and equipment | 11 | |||||||||||||||||||||
IPR&D | 44 | |||||||||||||||||||||
Other intangible assets | 154 | |||||||||||||||||||||
Goodwill | 348 | |||||||||||||||||||||
Other assets | 1 | |||||||||||||||||||||
Total assets acquired | 578 | |||||||||||||||||||||
Current liabilities | 43 | |||||||||||||||||||||
Long-term deferred tax liabilities, net | 38 | |||||||||||||||||||||
Total liabilities assumed | 81 | |||||||||||||||||||||
Net assets acquired | $ | 497 | ||||||||||||||||||||
PEAK | ' | ' | ||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | ' | ||||||||||||||||||||
The fair values of the assets acquired and liabilities assumed are as follows: | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Current assets | $ | 5 | ||||||||||||||||||||
Property, plant, and equipment | 5 | |||||||||||||||||||||
Intangible assets | 74 | |||||||||||||||||||||
Goodwill | 56 | |||||||||||||||||||||
Total assets acquired | 140 | |||||||||||||||||||||
Current liabilities | 10 | |||||||||||||||||||||
Long-term deferred tax liabilities, net | 17 | |||||||||||||||||||||
Total liabilities assumed | 27 | |||||||||||||||||||||
Net assets acquired | $ | 113 | ||||||||||||||||||||
Restructuring_Charges_Net_Tabl
Restructuring Charges, Net (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||
Fiscal Year 2014 Initiative | ' | ' | ||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve | ' | ' | ||||||||||||||||||||||||||||||||
A summary of the activity related to the fiscal year 2014 initiative is presented below: | ||||||||||||||||||||||||||||||||||
A summary of the activity related to the fiscal year 2014 initiative is presented below: | ||||||||||||||||||||||||||||||||||
Fiscal Year 2014 Initiative | ||||||||||||||||||||||||||||||||||
(in millions) | Employee | Asset | Other | Total | ||||||||||||||||||||||||||||||
(in millions) | Employee | Asset | Other | Total | Termination | Write-downs | Costs | |||||||||||||||||||||||||||
Termination | Write-downs | Costs | Costs | |||||||||||||||||||||||||||||||
Costs | Balance as of April 26, 2013 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 64 | $ | — | $ | 11 | $ | 75 | Restructuring charges | 65 | 26 | 25 | 116 | |||||||||||||||||||||
Restructuring charges | 1 | 9 | 28 | 38 | Payments/write-downs | (1 | ) | (26 | ) | (14 | ) | (41 | ) | |||||||||||||||||||||
Payments/write-downs | (17 | ) | (9 | ) | (19 | ) | (45 | ) | ||||||||||||||||||||||||||
Reversal of excess accrual | (6 | ) | — | — | (6 | ) | Balance as of April 25, 2014 | $ | 64 | $ | — | $ | 11 | $ | 75 | |||||||||||||||||||
Balance as of July 25, 2014 | $ | 42 | $ | — | $ | 20 | $ | 62 | ||||||||||||||||||||||||||
Fiscal Year 2013 Initiative | ' | ' | ||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve | ' | ' | ||||||||||||||||||||||||||||||||
A summary of the activity related to the fiscal year 2013 initiative is presented below: | ||||||||||||||||||||||||||||||||||
A summary of the activity related to the fiscal year 2013 initiative is presented below: | ||||||||||||||||||||||||||||||||||
Fiscal Year 2013 Initiative | ||||||||||||||||||||||||||||||||||
(in millions) | Employee | Asset | Other | Total | ||||||||||||||||||||||||||||||
(in millions) | Employee | Other | Total | Termination | Write-downs | Costs | ||||||||||||||||||||||||||||
Termination | Costs | Costs | ||||||||||||||||||||||||||||||||
Costs | Balance as of April 27, 2012 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 23 | $ | 1 | $ | 24 | Restructuring charges | 150 | 13 | 29 | 192 | |||||||||||||||||||||||
Payments | (5 | ) | (1 | ) | (6 | ) | Payments/write-downs | (3 | ) | (13 | ) | (6 | ) | (22 | ) | |||||||||||||||||||
Reversal of excess accrual | (2 | ) | — | (2 | ) | |||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 147 | $ | — | $ | 23 | $ | 170 | ||||||||||||||||||||||||||
Balance as of July 25, 2014 | $ | 16 | $ | — | $ | 16 | Restructuring charges | — | — | 18 | 18 | |||||||||||||||||||||||
Payments | (79 | ) | — | (39 | ) | (118 | ) | |||||||||||||||||||||||||||
Reversal of excess accrual | (45 | ) | — | (1 | ) | (46 | ) | |||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 23 | $ | — | $ | 1 | $ | 24 | ||||||||||||||||||||||||||
Fiscal Year 2012 Initiative | ' | ' | ||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve | ' | ' | ||||||||||||||||||||||||||||||||
A summary of the activity related to the fiscal year 2012 initiative is presented below: | ||||||||||||||||||||||||||||||||||
Fiscal Year 2012 Initiative | ||||||||||||||||||||||||||||||||||
(in millions) | Employee | Asset | Other | Total | ||||||||||||||||||||||||||||||
Termination | Write-downs | Costs | ||||||||||||||||||||||||||||||||
Costs | ||||||||||||||||||||||||||||||||||
Balance as of April 29, 2011 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
Restructuring charges | 66 | 9 | 43 | 118 | ||||||||||||||||||||||||||||||
Payments/write-downs | (2 | ) | (9 | ) | (16 | ) | (27 | ) | ||||||||||||||||||||||||||
Balance as of April 27, 2012 | $ | 64 | $ | — | $ | 27 | $ | 91 | ||||||||||||||||||||||||||
Payments | (54 | ) | — | (23 | ) | (77 | ) | |||||||||||||||||||||||||||
Reversal of excess accrual | (10 | ) | — | — | (10 | ) | ||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | — | $ | — | $ | 4 | $ | 4 | ||||||||||||||||||||||||||
Payments | — | — | (4 | ) | (4 | ) | ||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
Investments_Tables
Investments (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||||||||||
Text Block [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||
Information Regarding Short-term and Long-term Investments | ' | ' | ||||||||||||||||||||||||||||||||||||||||
Information regarding the Company’s investments at April 25, 2014 is as follows: | ||||||||||||||||||||||||||||||||||||||||||
Information regarding Medtronic’s investments at July 25, 2014 is as follows: | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Cost | Unrealized | Unrealized | Fair Value | Available-for-sale securities: | |||||||||||||||||||||||||||||||||||||
Gains | Losses | Corporate debt securities | $ | 5,504 | $ | 55 | $ | (17 | ) | $ | 5,542 | |||||||||||||||||||||||||||||||
Available-for-sale securities: | Auction rate securities | 109 | — | (12 | ) | 97 | ||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 5,429 | $ | 65 | $ | (10 | ) | $ | 5,484 | Mortgage-backed securities | 1,337 | 7 | (8 | ) | 1,336 | |||||||||||||||||||||||||||
Auction rate securities | 109 | — | (10 | ) | 99 | U.S. government and agency securities | 3,138 | 7 | (29 | ) | 3,116 | |||||||||||||||||||||||||||||||
Mortgage-backed securities | 1,252 | 10 | (8 | ) | 1,254 | Foreign government and agency securities | 67 | — | — | 67 | ||||||||||||||||||||||||||||||||
U.S. government and agency securities | 2,748 | 7 | (22 | ) | 2,733 | Certificates of deposit | 54 | — | — | 54 | ||||||||||||||||||||||||||||||||
Foreign government and agency securities | 78 | — | — | 78 | Other asset-backed securities | 540 | 2 | — | 542 | |||||||||||||||||||||||||||||||||
Certificates of deposit | 71 | — | — | 71 | Debt funds | 2,143 | 9 | (29 | ) | 2,123 | ||||||||||||||||||||||||||||||||
Other asset-backed securities | 497 | 1 | — | 498 | Marketable equity securities | 47 | 15 | (13 | ) | 49 | ||||||||||||||||||||||||||||||||
Debt funds | 2,446 | 48 | (8 | ) | 2,486 | Trading securities: | ||||||||||||||||||||||||||||||||||||
Marketable equity securities | 52 | 14 | (17 | ) | 49 | Exchange-traded funds | 54 | 13 | — | 67 | ||||||||||||||||||||||||||||||||
Trading securities: | Cost method, equity method, and other investments | 666 | — | — | NA | |||||||||||||||||||||||||||||||||||||
Exchange-traded funds | 54 | 15 | — | 69 | ||||||||||||||||||||||||||||||||||||||
Cost method, equity method, and other investments | 618 | — | — | NA | Total investments | $ | 13,659 | $ | 108 | $ | (108 | ) | $ | 12,993 | ||||||||||||||||||||||||||||
Total | $ | 13,354 | $ | 160 | $ | (75 | ) | $ | 12,821 | |||||||||||||||||||||||||||||||||
Information regarding the Company’s investments at April 26, 2013 is as follows: | ||||||||||||||||||||||||||||||||||||||||||
Information regarding Medtronic’s investments at April 25, 2014 is as follows: | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | Cost | Unrealized | Unrealized | Fair Value | Corporate debt securities | $ | 4,587 | $ | 78 | $ | (4 | ) | $ | 4,661 | ||||||||||||||||||||||||||||
Gains | Losses | Auction rate securities | 118 | — | (15 | ) | 103 | |||||||||||||||||||||||||||||||||||
Available-for-sale securities: | Mortgage-backed securities | 1,050 | 8 | (5 | ) | 1,053 | ||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 5,504 | $ | 55 | $ | (17 | ) | $ | 5,542 | U.S. government and agency securities | 3,882 | 17 | (1 | ) | 3,898 | |||||||||||||||||||||||||||
Auction rate securities | 109 | — | (12 | ) | 97 | Foreign government and agency securities | 38 | — | — | 38 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 1,337 | 7 | (8 | ) | 1,336 | Certificates of deposit | 6 | — | — | 6 | ||||||||||||||||||||||||||||||||
U.S. government and agency securities | 3,138 | 7 | (29 | ) | 3,116 | Other asset-backed securities | 539 | 2 | — | 541 | ||||||||||||||||||||||||||||||||
Foreign government and agency securities | 67 | — | — | 67 | Marketable equity securities | 82 | 75 | (2 | ) | 155 | ||||||||||||||||||||||||||||||||
Certificates of deposit | 54 | — | — | 54 | Trading securities: | |||||||||||||||||||||||||||||||||||||
Other asset-backed securities | 540 | 2 | — | 542 | Exchange-traded funds | 45 | 5 | — | 50 | |||||||||||||||||||||||||||||||||
Debt funds | 2,143 | 9 | (29 | ) | 2,123 | Cost method, equity method, and other investments | 549 | — | — | NA | ||||||||||||||||||||||||||||||||
Marketable equity securities | 47 | 15 | (13 | ) | 49 | |||||||||||||||||||||||||||||||||||||
Trading securities: | Total investments | $ | 10,896 | $ | 185 | $ | (27 | ) | $ | 10,505 | ||||||||||||||||||||||||||||||||
Exchange-traded funds | 54 | 13 | — | 67 | ||||||||||||||||||||||||||||||||||||||
Cost method, equity method, and other investments | 666 | — | — | NA | ||||||||||||||||||||||||||||||||||||||
Total | $ | 13,659 | $ | 108 | $ | (108 | ) | $ | 12,993 | |||||||||||||||||||||||||||||||||
Information Regarding Available-for-sale and Trading Securities | ' | ' | ||||||||||||||||||||||||||||||||||||||||
Information regarding the Company’s consolidated balance sheets presentation at April 25, 2014 and April 26, 2013 is as follows: | ||||||||||||||||||||||||||||||||||||||||||
Information regarding Medtronic’s condensed consolidated balance sheet presentation at July 25, 2014 and April 25, 2014 is as follows: | ||||||||||||||||||||||||||||||||||||||||||
April 25, 2014 | April 26, 2013 | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Investments | Other Assets | Investments | Other Assets | ||||||||||||||||||||||||||||||||||||||
July 25, 2014 | April 25, 2014 | Available-for-sale securities | $ | 12,771 | $ | 155 | $ | 10,161 | $ | 294 | ||||||||||||||||||||||||||||||||
(in millions) | Investments | Other Assets | Investments | Other Assets | Trading securities | 67 | — | 50 | — | |||||||||||||||||||||||||||||||||
Available-for-sale securities | $ | 12,557 | $ | 195 | $ | 12,771 | $ | 155 | Cost method, equity method, and other investments | — | 666 | — | 549 | |||||||||||||||||||||||||||||
Trading securities | 69 | — | 67 | — | ||||||||||||||||||||||||||||||||||||||
Cost method, equity method, and other investments | — | 618 | — | 666 | Total | $ | 12,838 | $ | 821 | $ | 10,211 | $ | 843 | |||||||||||||||||||||||||||||
Total | $ | 12,626 | $ | 813 | $ | 12,838 | $ | 821 | ||||||||||||||||||||||||||||||||||
Gross Unrealized Losses and Fair Values of Available-for-sale Securities that Have Been in a Continuous Unrealized Loss Position Deemed to be Temporary for Less than 12 Months and for More than 12 months, Aggregated by Investment Category | ' | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables show the gross unrealized losses and fair values of the Company’s available-for-sale securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category as of April 25, 2014 and April 26, 2013: | ||||||||||||||||||||||||||||||||||||||||||
The following tables show the gross unrealized losses and fair values of Medtronic’s available-for-sale securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category as of July 25, 2014 and April 25, 2014: | ||||||||||||||||||||||||||||||||||||||||||
April 25, 2014 | ||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | |||||||||||||||||||||||||||||||||||||||||
July 25, 2014 | (in millions) | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||||||||||||||||||||
Less than 12 months | More than 12 months | Losses | Losses | |||||||||||||||||||||||||||||||||||||||
(in millions) | Fair Value | Unrealized | Fair Value | Unrealized | Corporate debt securities | $ | 1,601 | $ | (14 | ) | $ | 50 | $ | (3 | ) | |||||||||||||||||||||||||||
Losses | Losses | Auction rate securities | — | — | 97 | (12 | ) | |||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 1,200 | $ | (5 | ) | $ | 273 | $ | (5 | ) | Mortgage-backed securities | 682 | (7 | ) | 28 | (1 | ) | |||||||||||||||||||||||||
Auction rate securities | — | — | 99 | (10 | ) | U.S. government and agency securities | 1,500 | (27 | ) | 46 | (2 | ) | ||||||||||||||||||||||||||||||
Mortgage-backed securities | 353 | (3 | ) | 333 | (5 | ) | Debt funds | 1,224 | (29 | ) | — | — | ||||||||||||||||||||||||||||||
U.S. government and agency securities | 754 | (1 | ) | 784 | (21 | ) | Marketable equity securities | 25 | (13 | ) | — | — | ||||||||||||||||||||||||||||||
Debt funds | 454 | (1 | ) | 141 | (7 | ) | ||||||||||||||||||||||||||||||||||||
Marketable equity securities | 21 | (17 | ) | — | — | Total | $ | 5,032 | $ | (90 | ) | $ | 221 | $ | (18 | ) | ||||||||||||||||||||||||||
Total | $ | 2,782 | $ | (27 | ) | $ | 1,630 | $ | (48 | ) | ||||||||||||||||||||||||||||||||
26-Apr-13 | ||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||||||||||||||||
Losses | Losses | |||||||||||||||||||||||||||||||||||||||||
April 25, 2014 | Corporate debt securities | $ | 544 | $ | (1 | ) | $ | 13 | $ | (3 | ) | |||||||||||||||||||||||||||||||
Less than 12 months | More than 12 months | Auction rate securities | — | — | 103 | (15 | ) | |||||||||||||||||||||||||||||||||||
(in millions) | Fair Value | Unrealized | Fair Value | Unrealized | Mortgage-backed securities | 195 | (1 | ) | 44 | (4 | ) | |||||||||||||||||||||||||||||||
Losses | Losses | U.S. government and agency securities | 291 | (1 | ) | — | — | |||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 1,601 | $ | (14 | ) | $ | 50 | $ | (3 | ) | Marketable equity securities | 14 | (2 | ) | — | — | ||||||||||||||||||||||||||
Auction rate securities | — | — | 97 | (12 | ) | |||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 682 | (7 | ) | 28 | (1 | ) | Total | $ | 1,044 | $ | (5 | ) | $ | 160 | $ | (22 | ) | |||||||||||||||||||||||||
U.S. government and agency securities | 1,500 | (27 | ) | 46 | (2 | ) | ||||||||||||||||||||||||||||||||||||
Debt funds | 1,224 | (29 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Marketable equity securities | 25 | (13 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 5,032 | $ | (90 | ) | $ | 221 | $ | (18 | ) | ||||||||||||||||||||||||||||||||
Activity Related to Short-term and Long-term Investment Portfolio | ' | ' | ||||||||||||||||||||||||||||||||||||||||
Activity related to Medtronic’s investment portfolio is as follows: | Activity related to the Company’s investment portfolio is as follows: | |||||||||||||||||||||||||||||||||||||||||
Three months ended | Fiscal Year | |||||||||||||||||||||||||||||||||||||||||
July 25, 2014 | July 26, 2013 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
(in millions) | Debt (a) | Equity (b) | Debt (a) | Equity (b) | (in millions) | Debt (a) | Equity (b) | Debt (a) | Equity (b) | Debt (a) | Equity (b) (c) | |||||||||||||||||||||||||||||||
Proceeds from sales | $ | 1,830 | $ | 23 | $ | 2,163 | $ | 32 | Proceeds from sales | $ | 7,991 | $ | 120 | $ | 10,350 | $ | 161 | $ | 7,675 | $ | 113 | |||||||||||||||||||||
Gross realized gains | 11 | 19 | 6 | 18 | Gross realized gains | $ | 15 | $ | 69 | $ | 59 | $ | 94 | $ | 52 | $ | 93 | |||||||||||||||||||||||||
Gross realized losses | (3 | ) | — | (5 | ) | — | Gross realized losses | $ | (12 | ) | $ | — | $ | (17 | ) | $ | — | $ | (16 | ) | $ | — | ||||||||||||||||||||
Impairment losses recognized | — | (1 | ) | — | — | Impairment losses recognized | $ | (1 | ) | $ | (9 | ) | $ | — | $ | (21 | ) | $ | (2 | ) | $ | (10 | ) | |||||||||||||||||||
(a) | Includes available-for-sale debt securities. | |||||||||||||||||||||||||||||||||||||||||
(b) | Includes marketable equity securities, cost method, equity method, exchange-traded funds, and other investments. | (a) | Includes available-for-sale debt securities. | |||||||||||||||||||||||||||||||||||||||
(b) | Includes marketable equity securities, cost method, equity method, exchange-traded funds, and other investments. | |||||||||||||||||||||||||||||||||||||||||
(c) | As a result of the Salient and PEAK acquisitions that occurred during fiscal year 2012, the Company recognized a non-cash gain of $38 million on its previously-held minority investments. | |||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Contractual Maturities | ' | ' | ||||||||||||||||||||||||||||||||||||||||
The April 25, 2014 balance of available-for-sale debt securities, excluding debt funds which have no single maturity date, by contractual maturity is shown in the following table. Within the table, maturities of mortgage-backed securities have been allocated based upon timing of estimated cash flows, assuming no change in the current interest rate environment. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. | ||||||||||||||||||||||||||||||||||||||||||
Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | April 25, 2014 | |||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,412 | ||||||||||||||||||||||||||||||||||||||||
(in millions) | July 25, 2014 | Due after one year through five years | 6,368 | |||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,426 | Due after five years through 10 years | 2,859 | ||||||||||||||||||||||||||||||||||||||
Due after one year through five years | 5,961 | Due after 10 years | 115 | |||||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 2,689 | |||||||||||||||||||||||||||||||||||||||||
Due after ten years | 141 | Total debt securities | $ | 10,754 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 10,217 | ||||||||||||||||||||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||
Information by Level for Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | ' | ' | ||||||||||||||||||||||||||||||||||||
The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | (in millions) | April 25, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | Assets: | ||||||||||||||||||||||||||||||||||||
(in millions) | July 25, 2014 | Level 1 | Level 2 | Level 3 | Corporate debt securities | $ | 5,542 | $ | — | $ | 5,533 | $ | 9 | |||||||||||||||||||||||||
Assets: | Auction rate securities | 97 | — | — | 97 | |||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 5,484 | $ | — | $ | 5,475 | $ | 9 | Mortgage-backed securities | 1,336 | — | 1,336 | — | |||||||||||||||||||||||||
Auction rate securities | 99 | — | — | 99 | U.S. government and agency securities | 3,116 | 1,251 | 1,865 | — | |||||||||||||||||||||||||||||
Mortgage-backed securities | 1,254 | — | 1,254 | — | Foreign government and agency securities | 67 | — | 67 | — | |||||||||||||||||||||||||||||
U.S. government and agency securities | 2,733 | 1,135 | 1,598 | — | Certificates of deposit | 54 | — | 54 | — | |||||||||||||||||||||||||||||
Foreign government and agency securities | 78 | — | 78 | — | Other asset-backed securities | 542 | — | 542 | — | |||||||||||||||||||||||||||||
Certificates of deposit | 71 | — | 71 | — | Debt funds | 2,123 | — | 2,123 | — | |||||||||||||||||||||||||||||
Other asset-backed securities | 498 | — | 498 | — | Marketable equity securities | 49 | 49 | — | — | |||||||||||||||||||||||||||||
Debt funds | 2,486 | — | 2,486 | — | Exchange-traded funds | 67 | 67 | — | — | |||||||||||||||||||||||||||||
Marketable equity securities | 49 | 49 | — | — | Derivative assets | 175 | 89 | 86 | — | |||||||||||||||||||||||||||||
Exchange-traded funds | 69 | 69 | — | — | ||||||||||||||||||||||||||||||||||
Derivative assets | 176 | 96 | 80 | — | Total assets | $ | 13,168 | $ | 1,456 | $ | 11,606 | $ | 106 | |||||||||||||||||||||||||
Total assets | $ | 12,997 | $ | 1,349 | $ | 11,540 | $ | 108 | Liabilities: | |||||||||||||||||||||||||||||
Derivative liabilities | $ | 127 | $ | 116 | $ | 11 | $ | — | ||||||||||||||||||||||||||||||
Liabilities: | Contingent consideration associated with acquisitions subsequent to April 24, 2009 | 68 | — | — | 68 | |||||||||||||||||||||||||||||||||
Derivative liabilities | $ | 68 | $ | 68 | $ | — | $ | — | ||||||||||||||||||||||||||||||
Contingent consideration associated with acquisitions subsequent to April 24, 2009 | 87 | — | — | 87 | Total liabilities | $ | 195 | $ | 116 | $ | 11 | $ | 68 | |||||||||||||||||||||||||
Total liabilities | $ | 155 | $ | 68 | $ | — | $ | 87 | Fair Value | Fair Value Measurements | ||||||||||||||||||||||||||||
as of | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||
(in millions) | April 26, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 4,661 | $ | — | $ | 4,651 | $ | 10 | ||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | Auction rate securities | 103 | — | — | 103 | ||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | Mortgage-backed securities | 1,053 | — | 1,039 | 14 | ||||||||||||||||||||||||||||||||
(in millions) | April 25, 2014 | Level 1 | Level 2 | Level 3 | U.S. government and agency securities | 3,898 | 1,833 | 2,065 | — | |||||||||||||||||||||||||||||
Assets: | Foreign government and agency securities | 38 | — | 38 | — | |||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 5,542 | $ | — | $ | 5,533 | $ | 9 | Certificates of deposit | 6 | — | 6 | — | |||||||||||||||||||||||||
Auction rate securities | 97 | — | — | 97 | Other asset-backed securities | 541 | — | 541 | — | |||||||||||||||||||||||||||||
Mortgage-backed securities | 1,336 | — | 1,336 | — | Marketable equity securities | 155 | 155 | — | — | |||||||||||||||||||||||||||||
U.S. government and agency securities | 3,116 | 1,251 | 1,865 | — | Exchange-traded funds | 50 | 50 | — | — | |||||||||||||||||||||||||||||
Foreign government and agency securities | 67 | — | 67 | — | Derivative assets | 394 | 213 | 181 | — | |||||||||||||||||||||||||||||
Certificates of deposit | 54 | — | 54 | — | ||||||||||||||||||||||||||||||||||
Other asset-backed securities | 542 | — | 542 | — | Total assets | $ | 10,899 | $ | 2,251 | $ | 8,521 | $ | 127 | |||||||||||||||||||||||||
Debt funds | 2,123 | — | 2,123 | — | ||||||||||||||||||||||||||||||||||
Marketable equity securities | 49 | 49 | — | — | ||||||||||||||||||||||||||||||||||
Exchange-traded funds | 67 | 67 | — | — | Liabilities: | |||||||||||||||||||||||||||||||||
Derivative assets | 175 | 89 | 86 | — | Derivative liabilities | $ | 58 | $ | 40 | $ | 18 | $ | — | |||||||||||||||||||||||||
Contingent consideration associated with acquisitions subsequent to April 24, 2009 | 142 | — | — | 142 | ||||||||||||||||||||||||||||||||||
Total assets | $ | 13,168 | $ | 1,456 | $ | 11,606 | $ | 106 | ||||||||||||||||||||||||||||||
Total liabilities | $ | 200 | $ | 40 | $ | 18 | $ | 142 | ||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||
Derivative liabilities | $ | 127 | $ | 116 | $ | 11 | $ | — | ||||||||||||||||||||||||||||||
Contingent consideration associated with acquisitions subsequent to April 24, 2009 | 68 | — | — | 68 | ||||||||||||||||||||||||||||||||||
Total liabilities | $ | 195 | $ | 116 | $ | 11 | $ | 68 | ||||||||||||||||||||||||||||||
Fair Value Inputs, Assets, Quantitative Information | ' | ' | ||||||||||||||||||||||||||||||||||||
The following table represents the range of the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 as of April 25, 2014: | ||||||||||||||||||||||||||||||||||||||
The following table represents the range of the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 as of July 25, 2014: | ||||||||||||||||||||||||||||||||||||||
Valuation | Unobservable Input | Range | ||||||||||||||||||||||||||||||||||||
Technique | (Weighted Average) | |||||||||||||||||||||||||||||||||||||
Valuation | Unobservable Input | Range | Auction rate securities | Discounted cash flow | Years to principal recovery | 2 yrs. - 12 yrs. (3 yrs.) | ||||||||||||||||||||||||||||||||
Illiquidity premium | 6% | |||||||||||||||||||||||||||||||||||||
Technique | (Weighted Average) | |||||||||||||||||||||||||||||||||||||
Auction rate securities | Discounted cash flow | Years to principal recovery Illiquidity premium | 2 yrs. - 12 yrs. (3 yrs.) 6% | |||||||||||||||||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Items Measured at Fair Value on a Recurring Basis that Used Significant Unobservable Inputs (Level 3) | ' | ' | ||||||||||||||||||||||||||||||||||||
The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3): | ||||||||||||||||||||||||||||||||||||||
The following tables provide a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3) for the three months ended July 25, 2014 and July 26, 2013: | ||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Corporate debt | Auction rate | Mortgage- | Other asset- | |||||||||||||||||||||||||||||||||
Investments | securities | securities | backed securities | backed securities | ||||||||||||||||||||||||||||||||||
Three months ended July 25, 2014 | Balance as of April 26, 2013 | $ | 127 | $ | 10 | $ | 103 | $ | 14 | $ | — | |||||||||||||||||||||||||||
(in millions) | Total Level 3 | Corporate debt | Auction rate | Mortgage- | Total realized losses and other-than-temporary impairment losses included in earnings | (5 | ) | — | (5 | ) | — | — | ||||||||||||||||||||||||||
Investments | securities | securities | backed securities | Total unrealized gains included in other comprehensive income | 4 | — | 3 | 1 | — | |||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 106 | $ | 9 | $ | 97 | $ | — | Settlements | (20 | ) | (1 | ) | (4 | ) | (15 | ) | — | ||||||||||||||||||||
Total unrealized gains included in other comprehensive income | 2 | — | 2 | — | ||||||||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 106 | $ | 9 | $ | 97 | $ | — | $ | — | ||||||||||||||||||||||||||||
Balance as of July 25, 2014 | $ | 108 | $ | 9 | $ | 99 | $ | — | ||||||||||||||||||||||||||||||
Three months ended July 26, 2013 | (in millions) | Total Level 3 | Corporate debt | Auction rate | Mortgage- | Other asset- | ||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Corporate debt | Auction rate | Mortgage- | Investments | securities | securities | backed securities | backed securities | |||||||||||||||||||||||||||||
Investments | securities | securities | backed securities | Balance as of April 27, 2012 | $ | 172 | $ | 10 | $ | 127 | $ | 29 | $ | 6 | ||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 127 | $ | 10 | $ | 103 | $ | 14 | Total unrealized gains included in other comprehensive income | 11 | — | 11 | — | — | ||||||||||||||||||||||||
Total unrealized gains included in other comprehensive income | 5 | — | 4 | 1 | Settlements | (56 | ) | — | (35 | ) | (15 | ) | (6 | ) | ||||||||||||||||||||||||
Balance as of July 26, 2013 | $ | 132 | $ | 10 | $ | 107 | $ | 15 | Balance as of April 26, 2013 | $ | 127 | $ | 10 | $ | 103 | $ | 14 | $ | — | |||||||||||||||||||
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||||
Schedule of Debt | ' | ' | ||||||||||||||||||||||||||||
Debt consisted of the following: | ||||||||||||||||||||||||||||||
Long-term debt consisted of the following: | ||||||||||||||||||||||||||||||
April 25, 2014 | April 26, 2013 | |||||||||||||||||||||||||||||
(in millions, except interest rates) | Maturity by | Payable | Effective | Payable | Effective | |||||||||||||||||||||||||
(in millions, except interest rates) | Maturity by | Payable as of | Payable as of | Fiscal Year | Interest | Interest | ||||||||||||||||||||||||
Fiscal Year | July 25, 2014 | April 25, 2014 | Rate | Rate | ||||||||||||||||||||||||||
4.750 percent ten-year 2005 senior notes | 2016 | $ | 600 | $ | 600 | Short-Term Borrowings: | ||||||||||||||||||||||||
2.625 percent five-year 2011 senior notes | 2016 | 500 | 500 | Commercial paper | 2014 | $ | — | — | $ | 125 | 0.21 | % | ||||||||||||||||||
Floating rate three-year 2014 senior notes | 2017 | 250 | 250 | Capital lease obligations | 2014-2015 | 14 | 3.33 | % | 14 | 3.3 | % | |||||||||||||||||||
0.875 percent three-year 2014 senior notes | 2017 | 250 | 250 | Bank borrowings | 2014-2015 | 337 | 0.35 | % | 221 | 0.57 | % | |||||||||||||||||||
1.375 percent five-year 2013 senior notes | 2018 | 1,000 | 1,000 | 3.000 percent five-year 2010 senior notes | 2015 | 1,250 | 3 | % | — | — | ||||||||||||||||||||
5.600 percent ten-year 2009 senior notes | 2019 | 400 | 400 | Interest rate swaps | 2015 | 12 | — | — | — | |||||||||||||||||||||
4.450 percent ten-year 2010 senior notes | 2020 | 1,250 | 1,250 | 4.500 percent five-year 2009 senior notes | 2014 | — | — | 550 | 4.5 | % | ||||||||||||||||||||
4.125 percent ten-year 2011 senior notes | 2021 | 500 | 500 | |||||||||||||||||||||||||||
3.125 percent ten-year 2012 senior notes | 2022 | 675 | 675 | Total Short-Term Borrowings | $ | 1,613 | $ | 910 | ||||||||||||||||||||||
2.750 percent ten-year 2013 senior notes | 2023 | 1,250 | 1,250 | |||||||||||||||||||||||||||
3.625 percent ten-year 2014 senior notes | 2024 | 850 | 850 | Long-Term Debt: | ||||||||||||||||||||||||||
6.500 percent thirty-year 2009 senior notes | 2039 | 300 | 300 | 3.000 percent five-year 2010 senior notes | 2015 | $ | — | — | $ | 1,250 | 3 | % | ||||||||||||||||||
5.550 percent thirty-year 2010 senior notes | 2040 | 500 | 500 | 4.750 percent ten-year 2005 senior notes | 2016 | 600 | 4.76 | % | 600 | 4.76 | % | |||||||||||||||||||
4.500 percent thirty-year 2012 senior notes | 2042 | 400 | 400 | 2.625 percent five-year 2011 senior notes | 2016 | 500 | 2.72 | % | 500 | 2.72 | % | |||||||||||||||||||
4.000 percent thirty-year 2013 senior notes | 2043 | 750 | 750 | Floating rate three-year 2014 senior notes | 2017 | 250 | 0.32 | % | — | — | ||||||||||||||||||||
4.625 percent thirty-year 2014 senior notes | 2044 | 650 | 650 | 0.875 percent three-year 2014 senior notes | 2017 | 250 | 0.91 | % | — | — | ||||||||||||||||||||
Interest rate swaps | 2016-2022 | 71 | 56 | 1.375 percent five-year 2013 senior notes | 2018 | 1,000 | 1.41 | % | 1,000 | 1.41 | % | |||||||||||||||||||
Deferred gains from interest rate swap terminations | — | 15 | 20 | 5.600 percent ten-year 2009 senior notes | 2019 | 400 | 5.61 | % | 400 | 5.61 | % | |||||||||||||||||||
Capital lease obligations | 2016-2025 | 136 | 139 | 4.450 percent ten-year 2010 senior notes | 2020 | 1,250 | 4.47 | % | 1,250 | 4.47 | % | |||||||||||||||||||
Discount | 2017-2044 | (24 | ) | (25 | ) | 4.125 percent ten-year 2011 senior notes | 2021 | 500 | 4.19 | % | 500 | 4.19 | % | |||||||||||||||||
3.125 percent ten-year 2012 senior notes | 2022 | 675 | 3.16 | % | 675 | 3.16 | % | |||||||||||||||||||||||
Total Long-Term Debt | $ | 10,323 | $ | 10,315 | 2.750 percent ten-year 2013 senior notes | 2023 | 1,250 | 2.78 | % | 1,250 | 2.78 | % | ||||||||||||||||||
3.625 percent ten-year 2014 senior notes | 2024 | 850 | 3.65 | % | — | — | ||||||||||||||||||||||||
6.500 percent thirty-year 2009 senior notes | 2039 | 300 | 6.52 | % | 300 | 6.52 | % | |||||||||||||||||||||||
5.550 percent thirty-year 2010 senior notes | 2040 | 500 | 5.56 | % | 500 | 5.56 | % | |||||||||||||||||||||||
4.500 percent thirty-year 2012 senior notes | 2042 | 400 | 4.51 | % | 400 | 4.51 | % | |||||||||||||||||||||||
4.000 percent thirty-year 2013 senior notes | 2043 | 750 | 4.12 | % | 750 | 4.12 | % | |||||||||||||||||||||||
4.625 percent thirty-year 2014 senior notes | 2044 | 650 | 4.67 | % | — | — | ||||||||||||||||||||||||
Interest rate swaps | 2015-2022 | 56 | — | 181 | — | |||||||||||||||||||||||||
Deferred gains from interest rate swap terminations, net | — | 20 | — | 50 | — | |||||||||||||||||||||||||
Capital lease obligations | 2015-2025 | 139 | 3.62 | % | 152 | 3.59 | % | |||||||||||||||||||||||
Bank borrowings | 2015 | — | — | 3 | 5 | % | ||||||||||||||||||||||||
Discount | 2017-2044 | (25 | ) | — | (20 | ) | — | |||||||||||||||||||||||
Total Long-Term Debt | $ | 10,315 | $ | 9,741 | ||||||||||||||||||||||||||
Schedule of Convertible Debt, Interest Information | ' | ' | ||||||||||||||||||||||||||||
The following table provides interest expense amounts related to the Senior Convertible Notes. | ||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||||||||||||||||||
Interest cost related to contractual interest coupon | $ | 35 | $ | 36 | ||||||||||||||||||||||||||
Interest cost related to amortization of the discount | 90 | 87 | ||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | ' | ' | ||||||||||||||||||||||||||||
Contractual maturities of debt for the next five fiscal years and thereafter, excluding the debt discount, the fair value of outstanding interest rate swap agreements, and the remaining deferred gains from terminated interest rate swap agreements are as follows: | ||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||
2015 | $ | 1,601 | ||||||||||||||||||||||||||||
2016 | 1,112 | |||||||||||||||||||||||||||||
2017 | 531 | |||||||||||||||||||||||||||||
2018 | 1,018 | |||||||||||||||||||||||||||||
2019 | 419 | |||||||||||||||||||||||||||||
Thereafter | 7,184 | |||||||||||||||||||||||||||||
Total debt | 11,865 | |||||||||||||||||||||||||||||
Less: Current portion of debt | 1,601 | |||||||||||||||||||||||||||||
Long-term portion of debt | $ | 10,264 | ||||||||||||||||||||||||||||
Derivatives_and_Foreign_Exchan1
Derivatives and Foreign Exchange Risk Management (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Other Comprehensive Income, Location | ' | ' | ||||||||||||||||||||||||||||||||
The amount of (losses) gains and location of the (losses) gains in the consolidated statements of earnings and other comprehensive income (OCI) related to foreign currency exchange rate contract derivative instruments designated as cash flow hedges for the fiscal years ended April 25, 2014, April 26, 2013, and April 27, 2012 are as follows: | ||||||||||||||||||||||||||||||||||
The amount of gains (losses) and location of the gains (losses) in the condensed consolidated statements of earnings and other comprehensive income (OCI) related to foreign currency exchange rate contract derivative instruments designated as cash flow hedges for the three months ended July 25, 2014 and July 26, 2013 are as follows: | ||||||||||||||||||||||||||||||||||
April 25, 2014 | ||||||||||||||||||||||||||||||||||
(in millions) | Gross (Losses) Gains | Effective Portion of (Losses) | ||||||||||||||||||||||||||||||||
Three months ended July 25, 2014 | Recognized in OCI | Gains on Derivative Reclassified | ||||||||||||||||||||||||||||||||
(in millions) | Gross Gains (Losses) | Effective Portion of Gains | on Effective Portion of | from AOCI into Income | ||||||||||||||||||||||||||||||
Recognized in OCI | (Losses) on Derivative Reclassified | Derivative | ||||||||||||||||||||||||||||||||
on Effective Portion of | from AOCI into Income | Derivatives in Cash Flow Hedging Relationships | Amount | Location | Amount | |||||||||||||||||||||||||||||
Derivative | Foreign currency exchange | $ | (152 | ) | Other expense, net | $ | 94 | |||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount | Location | Amount | rate contracts | ||||||||||||||||||||||||||||||
Foreign currency exchange | $ | 62 | Other expense, net | $ | 2 | Cost of products sold | (43 | ) | ||||||||||||||||||||||||||
rate contracts | ||||||||||||||||||||||||||||||||||
Cost of products sold | (3 | ) | Total | $ | (152 | ) | $ | 51 | ||||||||||||||||||||||||||
Total | $ | 62 | $ | (1 | ) | |||||||||||||||||||||||||||||
April 26, 2013 | ||||||||||||||||||||||||||||||||||
(in millions) | Gross (Losses) Gains | Effective Portion of (Losses) | ||||||||||||||||||||||||||||||||
Three months ended July 26, 2013 | Recognized in OCI | Gains on Derivative Reclassified | ||||||||||||||||||||||||||||||||
(in millions) | Gross Gains (Losses) | Effective Portion of Gains | on Effective Portion of | from AOCI into Income | ||||||||||||||||||||||||||||||
Recognized in OCI | (Losses) on Derivative Reclassified | Derivative | ||||||||||||||||||||||||||||||||
on Effective Portion of | from AOCI into Income | Derivatives in Cash Flow Hedging Relationships | Amount | Location | Amount | |||||||||||||||||||||||||||||
Derivative | Foreign currency exchange | $ | 121 | Other expense, net | $ | 103 | ||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount | Location | Amount | rate contracts | ||||||||||||||||||||||||||||||
Foreign currency exchange | $ | (27 | ) | Other expense, net | $ | 32 | Cost of products sold | (2 | ) | |||||||||||||||||||||||||
rate contracts | ||||||||||||||||||||||||||||||||||
Cost of products sold | (15 | ) | Total | $ | 121 | $ | 101 | |||||||||||||||||||||||||||
Total | $ | (27 | ) | 17 | ||||||||||||||||||||||||||||||
April 27, 2012 | ||||||||||||||||||||||||||||||||||
(in millions) | Gross (Losses) Gains | Effective Portion of (Losses) | ||||||||||||||||||||||||||||||||
Recognized in OCI | Gains on Derivative Reclassified | |||||||||||||||||||||||||||||||||
on Effective Portion of | from AOCI into Income | |||||||||||||||||||||||||||||||||
Derivative | ||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount | Location | Amount | |||||||||||||||||||||||||||||||
Foreign currency exchange | $ | 332 | Other expense, net | $ | (141 | ) | ||||||||||||||||||||||||||||
rate contracts | ||||||||||||||||||||||||||||||||||
Cost of products sold | 14 | |||||||||||||||||||||||||||||||||
Total | $ | 332 | $ | (127 | ) | |||||||||||||||||||||||||||||
Schedule of Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss) in Statement of Financial Performance | ' | ' | ||||||||||||||||||||||||||||||||
The amount and location of the gains in the consolidated statements of earnings related to derivative instruments, not designated as hedging instruments, for fiscal years 2014, 2013, and 2012 are as follows: | ||||||||||||||||||||||||||||||||||
The amount and location of the (losses) gains in the condensed consolidated statements of earnings related to derivative instruments, not designated as hedging instruments, for the three months ended July 25, 2014 and July 26, 2013 are as follows: | ||||||||||||||||||||||||||||||||||
(in millions) | Fiscal Year | |||||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
(in millions) | Three months ended | Foreign currency exchange rate contracts | Other expense, net | $ | 15 | $ | 26 | $ | 53 | |||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location | July 25, 2014 | July 26, 2013 | |||||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Other expense, net | $ | (24 | ) | $ | 29 | ||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | ' | ||||||||||||||||||||||||||||||||
The following tables summarize the location and fair value amounts of derivative instruments reported in the consolidated balance sheets as of April 25, 2014 and April 26, 2013. The fair value amounts are presented on a gross basis and are segregated between derivatives that are designated and qualify as hedging instruments and those that are not, and are further segregated by type of contract within those two categories. | ||||||||||||||||||||||||||||||||||
The following tables summarize the location and fair value amounts of derivative instruments reported in the condensed consolidated balance sheets as of July 25, 2014 and April 25, 2014. The fair value amounts are presented on a gross basis and are segregated between derivatives that are designated and qualify as hedging instruments and those that are not, and are further segregated by type of contract within those two categories. | ||||||||||||||||||||||||||||||||||
April 25, 2014 | ||||||||||||||||||||||||||||||||||
July 25, 2014 | ||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||
(in millions) | Balance Sheet Location | Fair | Balance Sheet Location | Fair | ||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Value | Value | |||||||||||||||||||||||||||||||
(in millions) | Balance Sheet Location | Fair | Balance Sheet Location | Fair | Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||
Value | Value | |||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | Interest rate contracts | Prepaid expenses and other current assets | $ | 13 | Other accrued expenses | $ | — | |||||||||||||||||||||||||||
Interest rate contracts | Prepaid expenses and other current assets | $ | 9 | Other accrued expenses | $ | — | Foreign currency exchange rate contracts | Prepaid expenses and other current assets | 81 | Other accrued expenses | 84 | |||||||||||||||||||||||
Foreign currency exchange rate contracts | Prepaid expenses and other current assets | 72 | Other accrued expenses | 52 | Interest rate contracts | Other assets | 73 | Other long-term liabilities | 11 | |||||||||||||||||||||||||
Interest rate contracts | Other assets | 71 | Other long-term liabilities | — | Foreign currency exchange rate contracts | Other assets | 8 | Other long-term liabilities | 30 | |||||||||||||||||||||||||
Foreign currency exchange rate contracts | Other assets | 23 | Other long-term liabilities | 15 | ||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 175 | $ | 125 | ||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 175 | $ | 67 | ||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Prepaid expenses and other current assets | $ | 1 | Other accrued expenses | $ | 1 | Foreign currency exchange rate contracts | Prepaid expenses and other current assets | $ | — | Other accrued expenses | $ | 2 | |||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 1 | $ | 1 | Total derivatives not designated as hedging instruments | $ | — | $ | 2 | |||||||||||||||||||||||||
Total derivatives | $ | 176 | $ | 68 | Total derivatives | $ | 175 | $ | 127 | |||||||||||||||||||||||||
April 25, 2014 | April 26, 2013 | |||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | (in millions) | Balance Sheet Location | Fair | Balance Sheet Location | Fair | ||||||||||||||||||||||||||||
(in millions) | Balance Sheet Location | Fair | Balance Sheet Location | Fair Value | Value | Value | ||||||||||||||||||||||||||||
Value | Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Prepaid expenses and other current assets | $ | 150 | Other accrued expenses | $ | 34 | ||||||||||||||||||||||||||||
Interest rate contracts | Prepaid expenses and | $ | 13 | Other accrued expenses | $ | — | Interest rate contracts | Other assets | 181 | Other long-term liabilities | 18 | |||||||||||||||||||||||
other current assets | Foreign currency exchange rate contracts | Other assets | 63 | Other long-term liabilities | 5 | |||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Prepaid expenses and | 81 | Other accrued expenses | 84 | ||||||||||||||||||||||||||||||
other current assets | Total derivatives designated as hedging instruments | $ | 394 | $ | 57 | |||||||||||||||||||||||||||||
Interest rate contracts | Other assets | 73 | Other long-term | 11 | ||||||||||||||||||||||||||||||
liabilities | Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Other assets | 8 | Other long-term | 30 | ||||||||||||||||||||||||||||||
liabilities | Foreign currency exchange rate contracts | Prepaid expenses and other current assets | $ | — | Other accrued expenses | $ | 1 | |||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 175 | $ | 125 | Total derivatives not designated as hedging instruments | $ | — | $ | 1 | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Total derivatives | $ | 394 | $ | 58 | |||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | Prepaid expenses and | $ | — | Other accrued expenses | $ | 2 | ||||||||||||||||||||||||||||
other current assets | ||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | — | $ | 2 | ||||||||||||||||||||||||||||||
Total derivatives | $ | 175 | $ | 127 | ||||||||||||||||||||||||||||||
Offsetting Assets and Liabilities | ' | ' | ||||||||||||||||||||||||||||||||
The following table provides information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation. | ||||||||||||||||||||||||||||||||||
The following table provides information as if Medtronic had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation. | ||||||||||||||||||||||||||||||||||
April 25, 2014 | Gross Amount Not Offset on the | |||||||||||||||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||||||||
July 25, 2014 | Gross Amount Not Offset on the | (in millions) | Gross Amount of | Financial | Cash Collateral | Net Amount | ||||||||||||||||||||||||||||
Balance Sheet | Recognized Assets | Instruments | (Received) or | |||||||||||||||||||||||||||||||
(in millions) | Gross Amount of | Financial | Cash Collateral | Net Amount | (Liabilities) | Posted | ||||||||||||||||||||||||||||
Recognized Assets | Instruments | (Received) or | Derivative Assets | |||||||||||||||||||||||||||||||
(Liabilities) | Posted | Foreign currency exchange rate contracts | $ | 89 | $ | (64 | ) | $ | — | $ | 25 | |||||||||||||||||||||||
Derivative Assets | Interest rate contracts | 86 | (31 | ) | — | 55 | ||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | $ | 96 | $ | (50 | ) | $ | — | $ | 46 | |||||||||||||||||||||||||
Interest rate contracts | 80 | (11 | ) | — | 69 | $ | 175 | $ | (95 | ) | $ | — | $ | 80 | ||||||||||||||||||||
$ | 176 | $ | (61 | ) | $ | — | $ | 115 | Derivative Liabilities | |||||||||||||||||||||||||
Foreign currency exchange rate contracts | $ | (116 | ) | $ | 84 | $ | — | $ | (32 | ) | ||||||||||||||||||||||||
Derivative Liabilities | Interest rate contracts | (11 | ) | 11 | — | — | ||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | $ | (68 | ) | $ | 61 | $ | — | $ | (7 | ) | ||||||||||||||||||||||||
$ | (127 | ) | $ | 95 | $ | — | $ | (32 | ) | |||||||||||||||||||||||||
$ | (68 | ) | $ | 61 | $ | — | $ | (7 | ) | |||||||||||||||||||||||||
Total | $ | 48 | $ | — | $ | — | $ | 48 | ||||||||||||||||||||||||||
Total | $ | 108 | $ | — | $ | — | $ | 108 | ||||||||||||||||||||||||||
April 26, 2013 | Gross Amount Not Offset on the | |||||||||||||||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||||||||
April 25, 2014 | Gross Amount Not Offset on the | (in millions) | Gross Amount of | Financial | Cash Collateral | Net Amount | ||||||||||||||||||||||||||||
Balance Sheet | Recognized Assets | Instruments | (Received) or | |||||||||||||||||||||||||||||||
(in millions) | Gross Amount of | Financial | Cash Collateral | Net Amount | (Liabilities) | Posted | ||||||||||||||||||||||||||||
Recognized Assets | Instruments | (Received) or | Derivative Assets | |||||||||||||||||||||||||||||||
(Liabilities) | Posted | Foreign currency exchange rate contracts | $ | 213 | $ | (42 | ) | $ | (24 | ) | $ | 147 | ||||||||||||||||||||||
Derivative Assets | Interest rate contracts | 181 | (16 | ) | (6 | ) | 159 | |||||||||||||||||||||||||||
Foreign currency exchange rate contracts | $ | 89 | $ | (64 | ) | $ | — | $ | 25 | |||||||||||||||||||||||||
Interest rate contracts | 86 | (31 | ) | — | 55 | $ | 394 | $ | (58 | ) | $ | (30 | ) | $ | 306 | |||||||||||||||||||
$ | 175 | $ | (95 | ) | $ | — | $ | 80 | Derivative Liabilities | |||||||||||||||||||||||||
Foreign currency exchange rate contracts | $ | (40 | ) | $ | 40 | $ | — | $ | — | |||||||||||||||||||||||||
Derivative Liabilities | Interest rate contracts | (18 | ) | 18 | — | — | ||||||||||||||||||||||||||||
Foreign currency exchange rate contracts | $ | (116 | ) | $ | 84 | $ | — | $ | (32 | ) | ||||||||||||||||||||||||
Interest rate contracts | (11 | ) | 11 | — | — | $ | (58 | ) | $ | 58 | $ | — | $ | — | ||||||||||||||||||||
$ | (127 | ) | $ | 95 | $ | — | $ | (32 | ) | Total | $ | 336 | $ | — | $ | (30 | ) | $ | 306 | |||||||||||||||
Total | $ | 48 | $ | — | $ | — | $ | 48 | ||||||||||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||
Inventory Disclosure [Abstract] | ' | ' | ||||||||||||||||
Schedule of Inventory, Net of Reserves | ' | ' | ||||||||||||||||
Inventory balances are as follows: | ||||||||||||||||||
Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as follows: | ||||||||||||||||||
(in millions) | April 25, | April 26, | ||||||||||||||||
2014 | 2013 | |||||||||||||||||
(in millions) | July 25, 2014 | April 25, 2014 | Finished goods | $ | 1,196 | $ | 1,174 | |||||||||||
Finished goods | $ | 1,235 | $ | 1,196 | Work in process | 247 | 248 | |||||||||||
Work in process | 283 | 247 | Raw materials | 282 | 290 | |||||||||||||
Raw materials | 318 | 282 | ||||||||||||||||
Total | $ | 1,725 | $ | 1,712 | ||||||||||||||
Total | $ | 1,836 | $ | 1,725 | ||||||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets, Net (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | ' | ' | ||||||||||||||||||||||||||||||||||||||||
The changes in the carrying amount of goodwill for fiscal years 2014 and 2013 are as follows: | ||||||||||||||||||||||||||||||||||||||||||
The changes in the carrying amount of goodwill for the three months ended July 25, 2014 are as follows: | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | Cardiac and | Restorative | Diabetes Group | Total | ||||||||||||||||||||||||||||||||||||||
Vascular Group | Therapies Group | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Cardiac and | Restorative | Diabetes | Total | Balance as of April 27, 2012 | $ | 2,636 | $ | 5,954 | $ | 1,344 | $ | 9,934 | |||||||||||||||||||||||||||||
Vascular | Therapies | Group | Goodwill as a result of acquisitions | — | 414 | — | 414 | |||||||||||||||||||||||||||||||||||
Group | Group | Other adjustments, net | — | 3 | — | 3 | ||||||||||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 2,881 | $ | 6,368 | $ | 1,344 | $ | 10,593 | Currency adjustment, net | (12 | ) | (10 | ) | — | (22 | ) | ||||||||||||||||||||||||||
Goodwill as a result of acquisitions | 50 | 49 | — | 99 | ||||||||||||||||||||||||||||||||||||||
Other adjustments, net | (2 | ) | — | — | (2 | ) | Balance as of April 26, 2013 | $ | 2,624 | $ | 6,361 | $ | 1,344 | $ | 10,329 | |||||||||||||||||||||||||||
Currency adjustment, net | 5 | 1 | — | 6 | Goodwill as a result of acquisitions | 279 | — | — | 279 | |||||||||||||||||||||||||||||||||
Other adjustments, net | (8 | ) | 7 | — | (1 | ) | ||||||||||||||||||||||||||||||||||||
Balance as of July 25, 2014 | $ | 2,934 | $ | 6,418 | $ | 1,344 | $ | 10,696 | Currency adjustment, net | (14 | ) | — | — | (14 | ) | |||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 2,881 | $ | 6,368 | $ | 1,344 | $ | 10,593 | ||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets by Major Class | ' | ' | ||||||||||||||||||||||||||||||||||||||||
Balances of other intangible assets, net, excluding goodwill as of July 25, 2014 and April 25, 2014 are as follows: | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | Purchased | Trademarks | Acquired | Other | Total | |||||||||||||||||||||||||||||||||||||
Technology | and | IPR&D | ||||||||||||||||||||||||||||||||||||||||
and | Tradenames | |||||||||||||||||||||||||||||||||||||||||
Patents | ||||||||||||||||||||||||||||||||||||||||||
Other intangible assets as of July 25, 2014: | ||||||||||||||||||||||||||||||||||||||||||
Original cost | $ | 3,992 | $ | 408 | $ | 116 | $ | 190 | $ | 4,706 | ||||||||||||||||||||||||||||||||
Accumulated amortization | (1,946 | ) | (337 | ) | — | (82 | ) | (2,365 | ) | |||||||||||||||||||||||||||||||||
Carrying value | $ | 2,046 | $ | 71 | $ | 116 | $ | 108 | $ | 2,341 | ||||||||||||||||||||||||||||||||
Other intangible assets as of April 25, 2014: | ||||||||||||||||||||||||||||||||||||||||||
Original cost | $ | 3,857 | $ | 408 | $ | 119 | $ | 200 | $ | 4,584 | ||||||||||||||||||||||||||||||||
Accumulated amortization | (1,878 | ) | (332 | ) | — | (88 | ) | (2,298 | ) | |||||||||||||||||||||||||||||||||
Carrying value | $ | 1,979 | $ | 76 | $ | 119 | $ | 112 | $ | 2,286 | ||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | ' | ||||||||||||||||||||||||||||||||||||||||
Estimated aggregate amortization expense based on the current carrying value of amortizable intangible assets, excluding any possible future amortization associated with acquired IPR&D, which has not met technological feasibility, is as follows: | ||||||||||||||||||||||||||||||||||||||||||
Estimated aggregate amortization expense based on the current carrying value of amortizable intangible assets, excluding any possible future amortization associated with acquired IPR&D, which has not met technological feasibility, is as follows: | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | Amortization | |||||||||||||||||||||||||||||||||||||||||
Fiscal Year | Expense | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Estimated | 2015 | $ | 338 | ||||||||||||||||||||||||||||||||||||||
Amortization | 2016 | 326 | ||||||||||||||||||||||||||||||||||||||||
Fiscal Year | Expense | 2017 | 304 | |||||||||||||||||||||||||||||||||||||||
Remaining 2015 | $ | 275 | 2018 | 289 | ||||||||||||||||||||||||||||||||||||||
2016 | 331 | 2019 | 244 | |||||||||||||||||||||||||||||||||||||||
2017 | 309 | Thereafter | 666 | |||||||||||||||||||||||||||||||||||||||
2018 | 293 | |||||||||||||||||||||||||||||||||||||||||
2019 | 249 | $ | 2,167 | |||||||||||||||||||||||||||||||||||||||
2020 | 204 | |||||||||||||||||||||||||||||||||||||||||
Thereafter | 564 | |||||||||||||||||||||||||||||||||||||||||
Total estimated amortization expense | $ | 2,225 | ||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | ' | ' | ||||||||||||||||||||||||||||||||||||||||
Balances of other intangible assets, net, for fiscal years 2014 and 2013 are as follows: | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | Purchased | Trademarks | Acquired | Other | Total | |||||||||||||||||||||||||||||||||||||
Technology | and | IPR&D | ||||||||||||||||||||||||||||||||||||||||
and | Tradenames | |||||||||||||||||||||||||||||||||||||||||
Patents | ||||||||||||||||||||||||||||||||||||||||||
Other intangible assets as of April 25, 2014 | ||||||||||||||||||||||||||||||||||||||||||
Original cost | $ | 3,857 | $ | 408 | $ | 119 | $ | 200 | $ | 4,584 | ||||||||||||||||||||||||||||||||
Accumulated amortization | (1,878 | ) | (332 | ) | — | (88 | ) | (2,298 | ) | |||||||||||||||||||||||||||||||||
Carrying value | $ | 1,979 | $ | 76 | $ | 119 | $ | 112 | $ | 2,286 | ||||||||||||||||||||||||||||||||
Weighted average original life (in years) | 12.7 | 11.8 | N/A | 8.7 | ||||||||||||||||||||||||||||||||||||||
Other intangible assets as of April 26, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Original cost | $ | 3,896 | $ | 408 | $ | 363 | $ | 104 | $ | 4,771 | ||||||||||||||||||||||||||||||||
Accumulated amortization | (1,702 | ) | (320 | ) | — | (76 | ) | (2,098 | ) | |||||||||||||||||||||||||||||||||
Carrying value | $ | 2,194 | $ | 88 | $ | 363 | $ | 28 | $ | 2,673 | ||||||||||||||||||||||||||||||||
Weighted average original life (in years) | 12.5 | 11.8 | N/A | 8.8 | ||||||||||||||||||||||||||||||||||||||
Warranty_Obligation_Tables
Warranty Obligation (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||
Guarantees [Abstract] | ' | ' | ||||||||||||||
Schedule of Product Warranty Obligations | ' | ' | ||||||||||||||
Changes in the Company’s product warranty obligations during the years ended April 25, 2014 and April 26, 2013 consisted of the following: | ||||||||||||||||
Changes in Medtronic’s product warranty obligations during the three months ended July 25, 2014 and July 26, 2013 consisted of the following: | ||||||||||||||||
(in millions) | ||||||||||||||||
Balance as of April 27, 2012 | $ | 31 | ||||||||||||||
Three months ended | Warranty claims provision | 25 | ||||||||||||||
(in millions) | July 25, | July 26, | Settlements made | (21 | ) | |||||||||||
2014 | 2013 | |||||||||||||||
Balance at the beginning of the period | $ | 32 | $ | 35 | Balance as of April 26, 2013 | $ | 35 | |||||||||
Warranty claims provision | 6 | 11 | Warranty claims provision | 25 | ||||||||||||
Settlements made | (7 | ) | (8 | ) | Settlements made | (28 | ) | |||||||||
Balance at the end of the period | $ | 31 | $ | 38 | Balance as of April 25, 2014 | $ | 32 | |||||||||
Interest_Expense_Net_Tables
Interest Expense, Net (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||
Text Block [Abstract] | ' | ' | ||||||||||||||||||||
Interest Income and Interest Expense | ' | ' | ||||||||||||||||||||
Interest income and interest expense for the three months ended July 25, 2014 and July 26, 2013 are as follows: | Interest income and interest expense for fiscal years 2014, 2013, and 2012 are as follows: | |||||||||||||||||||||
Three months ended | Fiscal Year | |||||||||||||||||||||
(in millions) | July 25, | July 26, | (in millions) | 2014 | 2013 | 2012 | ||||||||||||||||
2014 | 2013 | Interest income | $ | (271 | ) | $ | (237 | ) | $ | (200 | ) | |||||||||||
Interest income | $ | (92 | ) | $ | (50 | ) | Interest expense | 379 | 388 | 349 | ||||||||||||
Interest expense | 97 | 90 | ||||||||||||||||||||
Interest expense, net | $ | 108 | $ | 151 | $ | 149 | ||||||||||||||||
Interest expense, net | $ | 5 | $ | 40 | ||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ' | ||||||||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | ' | ' | ||||||||||||||||||||
The table below sets forth the computation of basic and diluted earnings per share: | ||||||||||||||||||||||
The table below sets forth the computation of basic and diluted earnings per share: | ||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||
(in millions, except per share data) | 2014 | 2013 | 2012 | |||||||||||||||||||
Three months ended | Numerator: | |||||||||||||||||||||
(in millions, except per share data) | July 25, | July 26, | Earnings from continuing operations | $ | 3,065 | $ | 3,467 | $ | 3,415 | |||||||||||||
2014 | 2013 | Earnings from discontinued operations | — | — | 202 | |||||||||||||||||
Numerator: | Net earnings | 3,065 | 3,467 | 3,617 | ||||||||||||||||||
Net earnings | $ | 871 | $ | 953 | Denominator: | |||||||||||||||||
Denominator: | Basic – weighted average shares outstanding | 1,002.10 | 1,019.30 | 1,053.90 | ||||||||||||||||||
Basic – weighted average shares outstanding | 992.6 | 1,009.70 | Effect of dilutive securities: | |||||||||||||||||||
Effect of dilutive securities: | Employee stock options | 7.1 | 2.8 | 0.9 | ||||||||||||||||||
Employee stock options | 7.5 | 6.6 | Employee restricted stock units | 4.3 | 5.3 | 4.9 | ||||||||||||||||
Employee restricted stock units | 5 | 4.8 | Other | 0.1 | 0.1 | 0.2 | ||||||||||||||||
Other | 0.1 | 0.1 | ||||||||||||||||||||
Diluted – weighted average shares outstanding | 1,013.60 | 1,027.50 | 1,059.90 | |||||||||||||||||||
Diluted – weighted average shares outstanding | 1,005.20 | 1,021.20 | ||||||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||
Basic earnings per share: | $ | 0.88 | $ | 0.94 | Earnings from continuing operations | $ | 3.06 | $ | 3.4 | $ | 3.24 | |||||||||||
Diluted earnings per share: | $ | 0.87 | $ | 0.93 | Earnings from discontinued operations | $ | — | $ | — | $ | 0.19 | |||||||||||
Net earnings | $ | 3.06 | $ | 3.4 | $ | 3.43 | ||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||
Earnings from continuing operations | $ | 3.02 | $ | 3.37 | $ | 3.22 | ||||||||||||||||
Earnings from discontinued operations | $ | — | $ | — | $ | 0.19 | ||||||||||||||||
Net earnings | $ | 3.02 | $ | 3.37 | $ | 3.41 |
Stock_Purchase_and_Award_Plans1
Stock Purchase and Award Plans (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||
Schedule of Components and Classification of Stock-based Compensation Expense | ' | ' | ||||||||||||||||||||||||||||||||
The following table presents the components and classification of stock-based compensation expense, for stock options, restricted stock awards, and ESPP shares recognized for fiscal years 2014, 2013, and 2012: | ||||||||||||||||||||||||||||||||||
The following table presents the components and classification of stock-based compensation expense recognized for the three months ended July 25, 2014 and July 26, 2013: | ||||||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Three months ended | Stock options | $ | 34 | $ | 44 | $ | 60 | |||||||||||||||||||||||||||
(in millions) | July 25, | July 26, | Restricted stock awards | 98 | 96 | 86 | ||||||||||||||||||||||||||||
2014 | 2013 | Employees stock purchase plan | 13 | 12 | 13 | |||||||||||||||||||||||||||||
Stock options | $ | 6 | $ | 8 | Physio-Control award acceleration | — | — | 2 | ||||||||||||||||||||||||||
Restricted stock awards | 23 | 19 | ||||||||||||||||||||||||||||||||
Employee stock purchase plan | 5 | 4 | Total stock-based compensation expense | $ | 145 | $ | 152 | $ | 161 | |||||||||||||||||||||||||
Total stock-based compensation expense | $ | 34 | $ | 31 | Cost of products sold | $ | 14 | $ | 12 | $ | 12 | |||||||||||||||||||||||
Research and development expense | 27 | 31 | 29 | |||||||||||||||||||||||||||||||
Cost of products sold | $ | 4 | $ | 3 | Selling, general, and administrative expense | 104 | 109 | 118 | ||||||||||||||||||||||||||
Research and development expense | 6 | 6 | Physio-Control divestiture-related costs | — | — | 2 | ||||||||||||||||||||||||||||
Selling, general, and administrative expense | 24 | 22 | ||||||||||||||||||||||||||||||||
Total stock-based compensation expense | 145 | 152 | 161 | |||||||||||||||||||||||||||||||
Total stock-based compensation expense | $ | 34 | $ | 31 | Income tax benefits | (40 | ) | (43 | ) | (45 | ) | |||||||||||||||||||||||
Income tax benefits | (9 | ) | (8 | ) | Total stock-based compensation expense, net of tax | $ | 105 | $ | 109 | $ | 116 | |||||||||||||||||||||||
Total stock-based compensation expense, net of tax | $ | 25 | $ | 23 | ||||||||||||||||||||||||||||||
Schedule of Stock Options Valuation Assumptions | ' | ' | ||||||||||||||||||||||||||||||||
The following table provides the weighted average fair value of options granted to employees and the related assumptions used in the Black-Scholes model: | ||||||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Weighted average fair value of options granted | $ | 12 | $ | 7.42 | $ | 6.88 | ||||||||||||||||||||||||||||
Assumptions used: | ||||||||||||||||||||||||||||||||||
Expected life (years)(a) | 6.4 | 6.5 | 6.4 | |||||||||||||||||||||||||||||||
Risk-free interest rate(b) | 1.88 | % | 0.94 | % | 1.82 | % | ||||||||||||||||||||||||||||
Volatility(c) | 25.2 | % | 26.22 | % | 25.97 | % | ||||||||||||||||||||||||||||
Dividend yield(d) | 2.02 | % | 2.64 | % | 2.78 | % | ||||||||||||||||||||||||||||
(a) | Expected life: The Company analyzes historical employee stock option exercise and termination data to estimate the expected life assumption. The Company calculates the expected life assumption using the midpoint scenario, which combines historical exercise data with hypothetical exercise data, as the Company believes this data currently represents the best estimate of the expected life of a new employee option. The Company also stratifies its employee population into two groups based upon distinctive exercise behavior patterns. | |||||||||||||||||||||||||||||||||
(b) | Risk-free interest rate: The rate is based on the grant date yield of a zero-coupon U.S. Treasury bond whose maturity period equals the expected term of the option. | |||||||||||||||||||||||||||||||||
(c) | Volatility: Expected volatility is based on a blend of historical volatility and an implied volatility of the Company’s common stock. Implied volatility is based on market traded options of the Company’s common stock. | |||||||||||||||||||||||||||||||||
(d) | Dividend yield: The dividend yield rate is calculated by dividing the Company’s annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date. | |||||||||||||||||||||||||||||||||
Schedule of Stock Options Activity | ' | ' | ||||||||||||||||||||||||||||||||
The following table summarizes all stock option activity, including activity from options assumed or issued as a result of acquisitions, during fiscal years 2014, 2013, and 2012: | ||||||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Options (in | Wtd. Avg. | Options (in | Wtd. Avg. | Options (in | Wtd. Avg. | |||||||||||||||||||||||||||||
thousands) | Exercise | thousands) | Exercise | thousands) | Exercise | |||||||||||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||||||||||||||
Beginning balance | 62,020 | $ | 44.98 | 74,590 | $ | 44.80 | 84,652 | $ | 45.23 | |||||||||||||||||||||||||
Granted | 2,983 | 55.36 | 4,437 | 39.54 | 4,634 | 34.93 | ||||||||||||||||||||||||||||
Exercised | (27,527 | ) | 46.26 | (6,096 | ) | 37.73 | (1,218 | ) | 34.95 | |||||||||||||||||||||||||
Canceled | (1,899 | ) | 46.44 | (10,911 | ) | 45.57 | (13,478 | ) | 44.98 | |||||||||||||||||||||||||
Outstanding at year-end | 35,577 | $ | 44.78 | 62,020 | $ | 44.98 | 74,590 | $ | 44.8 | |||||||||||||||||||||||||
Exercisable at year-end | 26,997 | $ | 45.22 | 50,908 | $ | 46.65 | 60,833 | $ | 46.73 | |||||||||||||||||||||||||
Schedule of Restricted Stock Award Activity | ' | ' | ||||||||||||||||||||||||||||||||
Restricted Stock Awards The following table summarizes restricted stock award activity during fiscal years 2014, 2013, and 2012: | ||||||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Awards (in | Wtd. Avg. | Awards (in | Wtd. Avg. | Awards (in | Wtd. Avg. | |||||||||||||||||||||||||||||
thousands) | Grant | thousands) | Grant | thousands) | Grant | |||||||||||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||||||||||||||
Nonvested, beginning balance | 10,058 | $ | 38.97 | 9,980 | $ | 37.8 | 9,207 | $ | 40.42 | |||||||||||||||||||||||||
Granted | 2,519 | 55.62 | 3,135 | 39.53 | 3,785 | 35.6 | ||||||||||||||||||||||||||||
Vested | (2,210 | ) | 35.76 | (2,445 | ) | 35.58 | (2,194 | ) | 44.74 | |||||||||||||||||||||||||
Forfeited | (809 | ) | 39.41 | (612 | ) | 36.34 | (818 | ) | 38.46 | |||||||||||||||||||||||||
Nonvested at year-end | 9,558 | $ | 44.06 | 10,058 | $ | 38.97 | 9,980 | $ | 37.80 | |||||||||||||||||||||||||
Retirement_Benefit_Plans_Table
Retirement Benefit Plans (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The net periodic benefit cost of the plans include the following components: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The net periodic benefit cost of the plans includes the following components for the three months ended July 25, 2014 and July 26, 2013: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension Benefits | Post-Retirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension | Post-Retirement Benefits | (in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits | Service cost | $ | 107 | $ | 104 | $ | 92 | $ | 54 | $ | 43 | $ | 42 | $ | 19 | $ | 19 | $ | 19 | |||||||||||||||||||||||||||||||||||||||||||
Three months ended | Three months ended | Three months ended | Interest cost | 97 | 94 | 87 | 29 | 27 | 29 | 14 | 15 | 17 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | July 25, | July 26, | July 25, | July 26, | July 25, | July 26, | Expected return on plan assets | (141 | ) | (128 | ) | (121 | ) | (35 | ) | (33 | ) | (36 | ) | (19 | ) | (17 | ) | (16 | ) | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | Amortization of prior service cost (credit) | 1 | (1 | ) | (1 | ) | 1 | 1 | 1 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 26 | $ | 27 | $ | 15 | $ | 14 | $ | 5 | $ | 5 | Amortization of net actuarial loss | 85 | 71 | 45 | 11 | 8 | 4 | 1 | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||
Interest cost | 26 | 24 | 8 | 7 | 4 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (39 | ) | (35 | ) | (10 | ) | (9 | ) | (6 | ) | (5 | ) | Net periodic benefit cost | $ | 149 | $ | 140 | $ | 102 | $ | 60 | $ | 46 | $ | 40 | $ | 15 | $ | 20 | $ | 23 | |||||||||||||||||||||||||||||||
Amortization of net actuarial loss | 16 | 21 | 3 | 2 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 29 | $ | 37 | $ | 16 | $ | 14 | $ | 3 | $ | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The change in benefit obligation and funded status of the Company’s employee retirement plans are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension | Post-Retirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated benefit obligation at end of year: | $ | 1,996 | $ | 1,924 | $ | 871 | $ | 689 | $ | 327 | $ | 302 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in projected benefit obligation: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | 2,154 | $ | 1,877 | $ | 811 | $ | 717 | $ | 302 | $ | 339 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | 107 | 104 | 54 | 43 | 19 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 97 | 94 | 29 | 27 | 14 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee contributions | — | — | 16 | 15 | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan amendments | — | — | — | (8 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan curtailments | — | — | (2 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial (gain) loss | (104 | ) | 151 | 88 | 65 | 1 | (62 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (51 | ) | (72 | ) | (27 | ) | (25 | ) | (19 | ) | (19 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Medicare Part D reimbursements | — | — | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | — | — | 62 | (23 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation at end of year | $ | 2,203 | $ | 2,154 | $ | 1,031 | $ | 811 | $ | 327 | $ | 302 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 1,717 | $ | 1,470 | $ | 733 | $ | 638 | $ | 233 | $ | 204 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 163 | 129 | 61 | 69 | 24 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employer contributions | 88 | 190 | 48 | 49 | 20 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee contributions | — | — | 16 | 15 | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (51 | ) | (72 | ) | (27 | ) | (25 | ) | (19 | ) | (19 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | — | — | 58 | (13 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 1,917 | $ | 1,717 | $ | 889 | $ | 733 | $ | 267 | $ | 233 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Funded status at end of year: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 1,917 | $ | 1,717 | $ | 889 | $ | 733 | $ | 267 | $ | 233 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligations | 2,203 | 2,154 | 1,031 | 811 | 327 | 302 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underfunded status of the plans | $ | (286 | ) | $ | (437 | ) | $ | (142 | ) | $ | (78 | ) | $ | (60 | ) | $ | (69 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Recognized liability | $ | (286 | ) | $ | (437 | ) | $ | (142 | ) | $ | (78 | ) | $ | (60 | ) | $ | (69 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Amounts recognized on the consolidated balance sheets consist of: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-current assets | $ | — | $ | — | $ | 17 | $ | 19 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Current liabilities | (10 | ) | (9 | ) | (4 | ) | (4 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-current liabilities | (276 | ) | (428 | ) | (155 | ) | (93 | ) | (59 | ) | (68 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized liability | $ | (286 | ) | $ | (437 | ) | $ | (142 | ) | $ | (78 | ) | $ | (60 | ) | $ | (69 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive (loss) income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prior service cost (benefit) | $ | 4 | $ | 5 | $ | (2 | ) | $ | (1 | ) | $ | (3 | ) | $ | (3 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss | 837 | 1,048 | 254 | 190 | 39 | 43 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 841 | $ | 1,053 | $ | 252 | $ | 189 | $ | 36 | $ | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013. U.S. and non-U.S. plans with accumulated benefit obligations in excess of plan assets consist of the following: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 2,426 | $ | 2,003 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation | 2,703 | 2,243 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan assets at fair value | 2,268 | 1,740 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plans with projected benefit obligations in excess of plan assets consist of the following: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 2,864 | $ | 2,637 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan assets at fair value | 2,419 | 2,104 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The other changes in plan assets and projected benefit obligations recognized in accumulated other comprehensive loss for fiscal year 2014 are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | U.S. Pension | Non-U.S. | Post- | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits | Pension | Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | $ | (126 | ) | $ | 61 | $ | (3 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service cost | (1 | ) | (1 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial gain | (85 | ) | (11 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of exchange rates | — | 14 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total recognized in accumulated other comprehensive loss | $ | (212 | ) | $ | 63 | $ | (4 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total recognized in net periodic benefit cost and accumulated other comprehensive loss | $ | (63 | ) | $ | 124 | $ | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost, before tax, in fiscal year 2015 are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | U.S. Pension | Non-U.S. | Post- | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits | Pension | Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | $ | 65 | $ | 13 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 65 | $ | 13 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The actuarial assumptions are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | Non-U.S. Pension Benefits | Post-Retirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average assumptions – projected benefit obligation: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.75% | 4.55% | 5.05% | 3.32% | 3.52% | 3.98% | 4.75% | 4.55% | 5.05% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Rate of compensation increase | 3.90% | 3.90% | 3.80% | 2.80% | 2.78% | 2.85% | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate pre-65 | N/A | N/A | N/A | N/A | N/A | N/A | 7.50% | 7.75% | 7.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate post-65 | N/A | N/A | N/A | N/A | N/A | N/A | 6.75% | 7.00% | 7.25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average assumptions – net periodic benefit cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.55% | 5.05% | 5.80% | 3.52% | 3.98% | 4.75% | 4.55% | 5.05% | 5.80% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | 8.25% | 8.25% | 8.25% | 4.76% | 5.19% | 5.82% | 8.25% | 8.25% | 8.25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Rate of compensation increase | 3.90% | 3.80% | 3.80% | 2.78% | 2.85% | 2.97% | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate pre-65 | N/A | N/A | N/A | N/A | N/A | N/A | 7.75% | 7.50% | 7.75% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial health care cost trend rate post-65 | N/A | N/A | N/A | N/A | N/A | N/A | 7.00% | 7.25% | 7.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allocation of Plan Assets | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s pension plan target allocations at April 25, 2014 and April 26, 2013, by asset category, are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Allocation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 50 | % | 50 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | 20 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 30 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Allocation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 41 | % | 40 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | 22 | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 37 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Expected Benefit Payments | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retiree benefit payments, which reflect expected future service, are anticipated to be paid as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | U.S. Pension | Non-U.S. | Post-Retirement Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits | Pension Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year | Gross | Gross | Gross | Gross Medicare | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments | Payments | Payments | Part D Receipts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 59 | $ | 36 | $ | 12 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 69 | 30 | 14 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 78 | 31 | 16 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 88 | 33 | 18 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 98 | 32 | 20 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 – 2024 | 659 | 187 | 137 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,051 | $ | 349 | $ | 217 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | One-Percentage- | One-Percentage- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Point Increase | Point Decrease | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on post-retirement benefit cost | $ | 1 | $ | (1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on post-retirement benefit obligation | 11 | (9 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Retirement Benefit Plan Assets | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide information by level for the retirement benefit plan assets that are measured at fair value, as defined by U.S. GAAP. See Note 6 for discussion of the fair value measurement terms of Levels 1, 2, and 3. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pension Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | April 25, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | $ | 157 | $ | 157 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | 158 | 108 | 50 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 60 | — | 59 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other common stock | 125 | 125 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity mutual funds/commingled trusts | 578 | — | 293 | 285 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income mutual funds | 166 | — | 166 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership units | 673 | — | — | 673 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,917 | $ | 390 | $ | 568 | $ | 959 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | April 26, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | $ | 195 | $ | 195 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | 172 | 145 | 27 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 62 | — | 61 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other common stock | 216 | 216 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity mutual funds/commingled trusts | 377 | — | 150 | 227 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income mutual funds | 72 | — | 72 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership units | 623 | — | — | 623 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,717 | $ | 556 | $ | 310 | $ | 851 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Retirement Benefit Plan Assets, Unobservable Input Reconciliation | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide a reconciliation of the beginning and ending balances of U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Corporate Debt | Commingled | Partnership Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Securities | Trusts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 851 | $ | 1 | $ | 227 | $ | 623 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized gains (losses) included in earnings | 23 | — | — | 23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unrealized gains (losses) included in accumulated other comprehensive loss | 86 | — | 58 | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales, net | (1 | ) | — | — | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 959 | $ | 1 | $ | 285 | $ | 673 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Corporate Debt | Commingled | Partnership Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Securities | Trusts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 27, 2012 | $ | 752 | $ | 1 | $ | 193 | $ | 558 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized gains (losses) included in earnings | 8 | — | — | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unrealized gains (losses) included in accumulated other comprehensive loss | 62 | — | 34 | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales, net | 29 | — | — | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 851 | $ | 1 | $ | 227 | $ | 623 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. Pension Benefits | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Retirement Benefit Plan Assets | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. Pension Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | April 25, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Registered investment companies | $ | 868 | $ | — | $ | 868 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts | 11 | — | — | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership units | 10 | — | — | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 889 | $ | — | $ | 868 | $ | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value as of | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
April 26, 2013 | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Registered investment companies | $ | 715 | $ | — | $ | 715 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts | 10 | — | — | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership units | 8 | — | — | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 733 | $ | — | $ | 715 | $ | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Retirement Benefit Plan Assets, Unobservable Input Reconciliation | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide a reconciliation of the beginning and ending balances of non-U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Insurance | Partnership | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Contracts | Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 18 | $ | 10 | $ | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unrealized gains (losses) included in accumulated other comprehensive loss | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales, net | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange | 1 | 1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 21 | $ | 11 | $ | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Insurance | Partnership | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Contracts | Units | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 27, 2012 | $ | 16 | $ | 9 | $ | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unrealized gains (losses) included in accumulated other comprehensive loss | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales, net | 1 | 1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 18 | $ | 10 | $ | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Post-Retirement Benefits | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Retirement Benefit Plan Assets | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Post-Retirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | April 25, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | $ | 22 | $ | 22 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | 23 | 16 | 7 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 9 | — | 9 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other common stock | 18 | 18 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity mutual funds/commingled trusts | 83 | — | 42 | 41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income mutual funds | 24 | — | 24 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership units | 97 | — | — | 97 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 276 | $ | 56 | $ | 82 | $ | 138 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other items to reconcile to fair value of plan assets | (9 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 267 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
as of | Using Inputs Considered as | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | April 26, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | $ | 28 | $ | 28 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | 24 | 20 | 4 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 9 | — | 9 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other common stock | 31 | 31 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity mutual funds/commingled trusts | 53 | — | 21 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income mutual funds | 10 | — | 10 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership units | 88 | — | — | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 243 | $ | 79 | $ | 44 | $ | 120 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other items to reconcile to fair value of plan assets | (10 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 233 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Retirement Benefit Plan Assets, Unobservable Input Reconciliation | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide a reconciliation of the beginning and ending balances of post-retirement benefit assets measured at fair value that used significant unobservable inputs (Level 3): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Commingled | Partnership Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Trusts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 120 | $ | 32 | $ | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized gains (losses) included in earnings | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unrealized gains (losses) included in accumulated other comprehensive loss | 13 | 9 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales, net | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 25, 2014 | $ | 138 | $ | 41 | $ | 97 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Total Level 3 | Commingled | Partnership Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Trusts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 27, 2012 | $ | 108 | $ | 28 | $ | 80 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized gains (losses) included in earnings | 5 | 4 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unrealized gains (losses) included in accumulated other comprehensive loss | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales, net | 3 | — | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013 | $ | 120 | $ | 32 | $ | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Loss | ' | ' | ||||||||||||||||||||||||||||||||||||||||||
Changes in AOCI by component are as follows: | ||||||||||||||||||||||||||||||||||||||||||||
Presented below is a summary of activity for each component of accumulated other comprehensive loss for fiscal years 2013 and 2012: | ||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Unrealized | Cumulative | Net Change | Unrealized | Total | |||||||||||||||||||||||||||||||||||||||
Gain (Loss) on | Translation | in | Gain (Loss) | Accumulated | (in millions) | Unrealized | Cumulative | Net Change | Unrealized | Accumulated | ||||||||||||||||||||||||||||||||||
Available-for- | Adjustments | Retirement | on | Other | Gain (Loss) | Translation | in | Gain (Loss) | Other | |||||||||||||||||||||||||||||||||||
Sale Securities | (a) | Obligations | Derivatives | Comprehensive | on | Adjustments | Retirement | on | Comprehensive | |||||||||||||||||||||||||||||||||||
(Loss) Income | Available-for- | Obligations | Derivatives | Loss | ||||||||||||||||||||||||||||||||||||||||
Balance as of April 25, 2014, net of tax | $ | (6 | ) | $ | 218 | $ | (765 | ) | $ | (44 | ) | $ | (597 | ) | Sale Securities | |||||||||||||||||||||||||||||
Other comprehensive income before reclassifications, before tax | 107 | 1 | 4 | 55 | 167 | Balance as of April 29, 2011 | $ | 196 | $ | 443 | $ | (607 | ) | $ | (256 | ) | $ | (224 | ) | |||||||||||||||||||||||||
Tax expense | (39 | ) | — | — | (19 | ) | (58 | ) | Other comprehensive (loss) income | (66 | ) | (137 | ) | (227 | ) | 181 | (249 | ) | ||||||||||||||||||||||||||
Other comprehensive income before reclassifications, net of tax | 68 | 1 | 4 | 36 | 109 | Balance as of April 27, 2012 | $ | 130 | $ | 306 | $ | (834 | ) | $ | (75 | ) | $ | (473 | ) | |||||||||||||||||||||||||
Reclassifications, before tax | (21 | ) | — | 19 | 3 | 1 | Other comprehensive (loss) income | (33 | ) | (21 | ) | (18 | ) | 53 | (19 | ) | ||||||||||||||||||||||||||||
Tax benefit (expense) | 7 | — | (6 | ) | (2 | ) | (1 | ) | Correction of classification | — | (80 | ) | — | 80 | — | |||||||||||||||||||||||||||||
Reclassifications, net of tax | (14 | )(b) | — | 13 | (c) | 1 | (d) | — | Balance as of April 26, 2013 | $ | 97 | $ | 205 | $ | (852 | ) | $ | 58 | $ | (492 | ) | |||||||||||||||||||||||
Other comprehensive income, net of tax | 54 | 1 | 17 | 37 | 109 | |||||||||||||||||||||||||||||||||||||||
Balance as of July 25, 2014, net of tax | $ | 48 | $ | 219 | $ | (748 | ) | $ | (7 | ) | $ | (488 | ) | Changes in AOCI by component are as follows: | ||||||||||||||||||||||||||||||
(in millions) | Unrealized | Cumulative | Net Change | Unrealized | Total | |||||||||||||||||||||||||||||||||||||||
Gain (Loss) | Translation | in | Gain (Loss) | Accumulated | (in millions) | Unrealized | Cumulative | Net Change in | Unrealized | Total | ||||||||||||||||||||||||||||||||||
on | Adjustments | Retirement | on | Other | Gain (Loss) on | Translation | Retirement | Gain (Loss) on | Accumulated | |||||||||||||||||||||||||||||||||||
Available-for- | (a) | Obligations | Derivatives | Comprehensive | Available-for- | Adjustments (a) | Obligations | Derivatives | Other | |||||||||||||||||||||||||||||||||||
Sale Securities | (Loss) Income | Sale Securities | Comprehensive | |||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2013, net of tax | $ | 97 | $ | 205 | $ | (852 | ) | $ | 58 | $ | (492 | ) | Loss | |||||||||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications, before tax | (131 | ) | (5 | ) | — | 18 | (118 | ) | Balance as of April 26, 2013, net of tax | $ | 97 | $ | 205 | $ | (852 | ) | $ | 58 | $ | (492 | ) | |||||||||||||||||||||||
Tax benefit (expense) | 48 | — | — | (6 | ) | 42 | Other comprehensive (loss) income before reclassifications, before tax | (89 | ) | 13 | 60 | (120 | ) | (136 | ) | |||||||||||||||||||||||||||||
Tax benefit (expense) | 32 | — | (37 | ) | 44 | 39 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications, net of tax | (83 | ) | (5 | ) | — | 12 | (76 | ) | ||||||||||||||||||||||||||||||||||||
Reclassifications, before tax | (18 | ) | — | 23 | (15 | ) | (10 | ) | Other comprehensive (loss) income before reclassifications, net of tax | (57 | ) | 13 | 23 | (76 | ) | (97 | ) | |||||||||||||||||||||||||||
Tax benefit (expense) | 6 | — | (9 | ) | 5 | 2 | Reclassifications, before tax | (72 | ) | — | 99 | (42 | ) | (15 | ) | |||||||||||||||||||||||||||||
Tax benefit (expense) | 26 | — | (35 | ) | 16 | 7 | ||||||||||||||||||||||||||||||||||||||
Reclassifications, net of tax | (12 | )(b) | — | 14 | (c) | (10 | )(d) | (8 | ) | |||||||||||||||||||||||||||||||||||
Reclassifications, net of tax | (46 | )(b) | — | 64 | (c) | (26 | )(d) | (8 | ) | |||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (95 | ) | (5 | ) | 14 | 2 | (84 | ) | ||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (103 | ) | 13 | 87 | (102 | ) | (105 | ) | ||||||||||||||||||||||||||||||||||||
Balance as of July 26, 2013, net of tax | $ | 2 | $ | 200 | $ | (838 | ) | $ | 60 | $ | (576 | ) | ||||||||||||||||||||||||||||||||
Balance as of April 25, 2014, net of tax | $ | (6 | ) | $ | 218 | $ | (765 | ) | $ | (44 | ) | $ | (597 | ) | ||||||||||||||||||||||||||||||
(a) | Taxes are not provided on CTA as substantially all translation adjustments relate to earnings that are intended to be indefinitely reinvested outside the U.S. | (a) | Taxes are not provided on CTA as substantially all translation adjustments relate to earnings that are intended to be indefinitely reinvested outside the U.S. | |||||||||||||||||||||||||||||||||||||||||
(b) | Represents net realized gains on sales of available-for-sale securities that were reclassified from AOCI to other expense, net (see Note 6). | (b) | Represents net realized gains on sales of available-for-sale securities that were reclassified from AOCI to other expense, net (see Note 5). | |||||||||||||||||||||||||||||||||||||||||
(c) | Includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note 17). | (c) | Includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note 14). | |||||||||||||||||||||||||||||||||||||||||
(d) | Relates to foreign currency cash flow hedges that were reclassified from AOCI to other expense, net or cost of products sold and forward starting interest rate derivative instruments that were reclassified from AOCI to interest expense, net (see Note 9). | (d) | Relates to foreign currency cash flow hedges that were reclassified from AOCI to other expense, net or cost of products sold and forward starting interest rate derivative instruments that were reclassified from AOCI to interest expense, net (see Note 9). |
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ' | ||||||||||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated | ' | ' | ||||||||||||||||||||||||||||
Net sales of the Company’s reportable segments include end-customer revenues from the sale of products they each develop and manufacture or distribute. Net sales and earnings before income taxes by reportable segment are as follows: | ||||||||||||||||||||||||||||||
Net sales of Medtronic’s reportable segments include end-customer revenues from the sale of products they each develop and manufacture or distribute. Net sales and earnings before income taxes by reportable segment are as follows: | ||||||||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Three months ended | Cardiac and Vascular Group | $ | 8,847 | $ | 8,695 | $ | 8,482 | |||||||||||||||||||||||
(in millions) | July 25, | July 26, | Restorative Therapies Group | 6,501 | 6,369 | 6,221 | ||||||||||||||||||||||||
2014 | 2013 | Diabetes Group | 1,657 | 1,526 | 1,481 | |||||||||||||||||||||||||
Cardiac and Vascular Group | $ | 2,254 | $ | 2,160 | ||||||||||||||||||||||||||
Restorative Therapies Group | 1,603 | 1,554 | Total Net Sales | $ | 17,005 | $ | 16,590 | $ | 16,184 | |||||||||||||||||||||
Diabetes Group | 416 | 369 | ||||||||||||||||||||||||||||
Total Net Sales | $ | 4,273 | $ | 4,083 | ||||||||||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ' | ' | ||||||||||||||||||||||||||||
Three months ended | Fiscal Year | |||||||||||||||||||||||||||||
(in millions) | July 25, | July 26, | (in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
2014 | 2013 | Cardiac and Vascular Group | $ | 2,982 | $ | 2,935 | $ | 2,772 | ||||||||||||||||||||||
Cardiac and Vascular Group | $ | 712 | $ | 756 | Restorative Therapies Group | 1,821 | 1,778 | 1,707 | ||||||||||||||||||||||
Restorative Therapies Group | 410 | 421 | Diabetes Group | 457 | 432 | 396 | ||||||||||||||||||||||||
Diabetes Group | 120 | 75 | ||||||||||||||||||||||||||||
Total Reportable Segments’ Earnings Before Income Taxes | 5,260 | 5,145 | 4,875 | |||||||||||||||||||||||||||
Total Reportable Segments’ Earnings Before Income Taxes | 1,242 | 1,252 | Special charges | (40 | ) | — | — | |||||||||||||||||||||||
Special charges | — | (40 | ) | Restructuring charges, net(a) | (88 | ) | (182 | ) | (87 | ) | ||||||||||||||||||||
Restructuring charges, net | (30 | ) | (18 | ) | Certain litigation charges, net | (770 | ) | (245 | ) | (90 | ) | |||||||||||||||||||
Acquisition-related items | (41 | ) | 96 | Acquisition-related items | (117 | ) | 49 | (12 | ) | |||||||||||||||||||||
Interest expense, net | (5 | ) | (40 | ) | Interest expense, net | (108 | ) | (151 | ) | (149 | ) | |||||||||||||||||||
Corporate | (83 | ) | (97 | ) | Corporate | (432 | ) | (365 | ) | (392 | ) | |||||||||||||||||||
Earnings Before Income Taxes | $ | 1,083 | $ | 1,153 | Total Earnings From Continuing Operations Before Income Taxes | $ | 3,705 | $ | 4,251 | $ | 4,145 | |||||||||||||||||||
(a) | For fiscal years 2014 and 2013, restructuring charges, net within this table include the impact of amounts recorded within cost of products sold in the consolidated statements of earnings related to the fiscal year 2014 initiative and fiscal year 2013 initiative, respectively. | |||||||||||||||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | ' | ' | ||||||||||||||||||||||||||||
Net sales to external customers by geography are as follows: | Net sales to external customers and property, plant, and equipment, net by geography are as follows: | |||||||||||||||||||||||||||||
Three months ended | (in millions) | United States | Europe and | Asia Pacific | Other | Consolidated | ||||||||||||||||||||||||
(in millions) | July 25, | July 26, | Canada | Foreign | ||||||||||||||||||||||||||
2014 | 2013 | Fiscal Year 2014 | ||||||||||||||||||||||||||||
United States | $ | 2,333 | $ | 2,206 | Net sales to external customers | $ | 9,209 | $ | 4,380 | $ | 2,600 | $ | 816 | $ | 17,005 | |||||||||||||||
Europe and Canada | 1,081 | 1,046 | Property, plant, and equipment, net | $ | 1,762 | $ | 388 | $ | 195 | $ | 47 | $ | 2,392 | |||||||||||||||||
Asia-Pacific | 649 | 656 | Fiscal Year 2013 | |||||||||||||||||||||||||||
Other Foreign | 210 | 175 | Net sales to external customers | $ | 9,059 | $ | 4,199 | $ | 2,604 | $ | 728 | $ | 16,590 | |||||||||||||||||
Property, plant, and equipment, net | $ | 1,849 | $ | 391 | $ | 206 | $ | 44 | $ | 2,490 | ||||||||||||||||||||
Total Net Sales | $ | 4,273 | $ | 4,083 | Fiscal Year 2012 | |||||||||||||||||||||||||
Net sales to external customers | $ | 8,828 | $ | 4,313 | $ | 2,399 | $ | 644 | $ | 16,184 | ||||||||||||||||||||
Property, plant, and equipment, net | $ | 1,894 | $ | 389 | $ | 154 | $ | 36 | $ | 2,473 | ||||||||||||||||||||
Reconciliation of Net Assets from Segments to Consolidated | ' | ' | ||||||||||||||||||||||||||||
The following table presents the Company’s net assets by reportable segment: | ||||||||||||||||||||||||||||||
(in millions) | April 25, | April 26, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
Cardiac and Vascular Group | $ | 6,578 | $ | 6,941 | ||||||||||||||||||||||||||
Restorative Therapies Group | 9,604 | 10,058 | ||||||||||||||||||||||||||||
Diabetes Group | 1,819 | 1,857 | ||||||||||||||||||||||||||||
Total Net Assets of Reportable Segments | 18,001 | 18,856 | ||||||||||||||||||||||||||||
Short-term borrowings | (1,613 | ) | (910 | ) | ||||||||||||||||||||||||||
Long-term debt | (10,315 | ) | (9,741 | ) | ||||||||||||||||||||||||||
Corporate | 13,370 | 10,466 | ||||||||||||||||||||||||||||
Total Net Assets | $ | 19,443 | $ | 18,671 | ||||||||||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Apr. 25, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Schedule of Property, Plant and Equipment | ' | ||||||||||||
Property, plant, and equipment balances and corresponding lives are as follows: | |||||||||||||
(in millions) | April 25, | April 26, | Lives | ||||||||||
2014 | 2013 | (in years) | |||||||||||
Land and land improvements | $ | 152 | $ | 151 | Up to 20 | ||||||||
Buildings and leasehold improvements | 1,565 | 1,532 | Up to 40 | ||||||||||
Equipment | 4,409 | 4,110 | 7-Mar | ||||||||||
Construction in progress | 313 | 359 | — | ||||||||||
Subtotal | 6,439 | 6,152 | |||||||||||
Less: Accumulated depreciation | (4,047 | ) | (3,662 | ) | |||||||||
Property, plant, and equipment, net | $ | 2,392 | $ | 2,490 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Apr. 25, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Components of Earnings from Continuing Operations before Income Taxes, Based on Tax Jurisdiction | ' | ||||||||||||
The components of earnings from continuing operations before income taxes, based on tax jurisdiction, are as follows: | |||||||||||||
Fiscal Year | |||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||
U.S. | $ | 1,690 | $ | 1,806 | $ | 1,620 | |||||||
International | 2,015 | 2,445 | 2,525 | ||||||||||
Earnings from continuing operations before income taxes | $ | 3,705 | $ | 4,251 | $ | 4,145 | |||||||
Provision for Income Taxes | ' | ||||||||||||
The provision for income taxes from continuing operations consists of the following: | |||||||||||||
Fiscal Year | |||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||
Current tax expense: | |||||||||||||
U.S. | $ | 532 | $ | 509 | $ | 664 | |||||||
International | 248 | 219 | 231 | ||||||||||
Total current tax expense | 780 | 728 | 895 | ||||||||||
Deferred tax expense (benefit): | |||||||||||||
U.S. | (175 | ) | 46 | (138 | ) | ||||||||
International | 35 | 10 | (27 | ) | |||||||||
Net deferred tax expense (benefit) | (140 | ) | 56 | (165 | ) | ||||||||
Total provision for income taxes | $ | 640 | $ | 784 | $ | 730 | |||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||
Tax assets (liabilities), shown before jurisdictional netting of deferred tax assets (liabilities), are comprised of the following: | |||||||||||||
(in millions) | April 25, 2014 | April 26, 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss, capital loss, and credit carryforwards | $ | 487 | $ | 423 | |||||||||
Other accrued liabilities | 205 | 140 | |||||||||||
Accrued compensation | 201 | 98 | |||||||||||
Pension and post-retirement benefits | 194 | 239 | |||||||||||
Stock-based compensation | 171 | 223 | |||||||||||
Other | 142 | 200 | |||||||||||
Inventory | 118 | 121 | |||||||||||
Federal and state benefit on uncertain tax positions | 79 | 57 | |||||||||||
Unrealized loss on available-for-sale securities and derivative financial instruments | 29 | — | |||||||||||
Gross deferred tax assets | 1,626 | 1,501 | |||||||||||
Valuation allowance | (397 | ) | (313 | ) | |||||||||
Total deferred tax assets | 1,229 | 1,188 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Intangible assets | (652 | ) | (712 | ) | |||||||||
Basis impairment | (225 | ) | (214 | ) | |||||||||
Realized loss on derivative financial instruments | (110 | ) | (110 | ) | |||||||||
Other | (24 | ) | (29 | ) | |||||||||
Accumulated depreciation | (20 | ) | (56 | ) | |||||||||
Unrealized gain on available-for-sale securities and derivative financial instruments | — | (87 | ) | ||||||||||
Total deferred tax liabilities | (1,031 | ) | (1,208 | ) | |||||||||
Prepaid income taxes | 320 | 321 | |||||||||||
Income tax receivables | 113 | 114 | |||||||||||
Tax assets, net | $ | 631 | $ | 415 | |||||||||
Reported as (after valuation allowance and jurisdictional netting): | |||||||||||||
Tax assets | $ | 736 | $ | 539 | |||||||||
Long-term tax assets | 300 | 232 | |||||||||||
Deferred tax liabilities | (19 | ) | (16 | ) | |||||||||
Long-term deferred tax liabilities | (386 | ) | (340 | ) | |||||||||
Tax assets, net | $ | 631 | $ | 415 | |||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||||||
The Company’s effective income tax rate from continuing operations varied from the U.S. federal statutory tax rate as follows: | |||||||||||||
Fiscal Year | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. federal statutory tax rate | 35 | % | 35 | % | 35 | % | |||||||
Increase (decrease) in tax rate resulting from: | |||||||||||||
U.S. state taxes, net of federal tax benefit | 0.6 | 0.5 | 0.9 | ||||||||||
Research and development credit | (0.5 | ) | (1.1 | ) | (0.6 | ) | |||||||
Domestic production activities | (0.4 | ) | (0.3 | ) | (0.5 | ) | |||||||
International | (17.7 | ) | (16.7 | ) | (16.9 | ) | |||||||
Puerto Rico Excise Tax | (1.6 | ) | (1.3 | ) | (1.4 | ) | |||||||
Impact of restructuring charges, net, certain litigation charges, net, and acquisition-related items | 5.6 | 2 | 0.3 | ||||||||||
Reversal of excess tax accruals | (1.9 | ) | — | (0.8 | ) | ||||||||
Valuation allowance release | — | (0.2 | ) | (0.8 | ) | ||||||||
Other, net | (1.8 | ) | 0.5 | 2.4 | |||||||||
Effective tax rate | 17.3 | % | 18.4 | % | 17.6 | % | |||||||
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal years 2014, 2013, and 2012 is as follows: | |||||||||||||
Fiscal Year | |||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||
Gross unrecognized tax benefits at beginning of fiscal year | $ | 1,068 | $ | 917 | $ | 769 | |||||||
Gross increases: | |||||||||||||
Prior year tax positions | 64 | 12 | 47 | ||||||||||
Current year tax positions | 166 | 169 | 171 | ||||||||||
Gross decreases: | |||||||||||||
Prior year tax positions | (58 | ) | (21 | ) | (53 | ) | |||||||
Settlements | (66 | ) | (6 | ) | (4 | ) | |||||||
Statute of limitation lapses | (2 | ) | (3 | ) | (13 | ) | |||||||
Gross unrecognized tax benefits at end of fiscal year | $ | 1,172 | $ | 1,068 | $ | 917 | |||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||||
Apr. 25, 2014 | |||||||||
Leases [Abstract] | ' | ||||||||
Schedule of Future Minimum Lease Payments for Capital Leases and Operating Leases | ' | ||||||||
Future minimum payments under capitalized leases and non-cancelable operating leases at April 25, 2014 are: | |||||||||
(in millions) | Capitalized | Operating | |||||||
Fiscal Year | Leases | Leases | |||||||
2015 | $ | 18 | $ | 112 | |||||
2016 | 17 | 77 | |||||||
2017 | 34 | 45 | |||||||
2018 | 22 | 21 | |||||||
2019 | 22 | 13 | |||||||
Thereafter | 64 | 23 | |||||||
Total minimum lease payments | $ | 177 | $ | 291 | |||||
Less amounts representing interest | (24 | ) | N/A | ||||||
Present value of net minimum lease payments | $ | 153 | N/A | ||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||
Apr. 25, 2014 | |||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||
Summary of Operating Results for Discontinued Operations before Tax | ' | ||||
The following is a summary of the operating results of Physio-Control for discontinued operations for fiscal year 2012: | |||||
(in millions) | 2012 | ||||
Discontinued operations: | |||||
Net sales | $ | 323 | |||
Earnings from operations of Physio-Control | $ | 48 | |||
Physio-Control divestiture-related costs | (42 | ) | |||
Gain on sale of Physio-Control | 218 | ||||
Income tax expense | (22 | ) | |||
Earnings from discontinued operations | $ | 202 | |||
Quarterly_Financial_Data_unaud1
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Apr. 25, 2014 | |||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Quarterly Financial Data | ' | ||||||||||||||||||||||||
(in millions, | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Fiscal Year | ||||||||||||||||||||
except per share data) | |||||||||||||||||||||||||
Net Sales | |||||||||||||||||||||||||
2014 | $ | 4,083 | $ | 4,194 | $ | 4,163 | $ | 4,566 | $ | 17,005 | |||||||||||||||
2013 | 4,008 | 4,095 | 4,027 | 4,459 | 16,590 | ||||||||||||||||||||
Gross Profit | |||||||||||||||||||||||||
2014 | $ | 3,061 | $ | 3,104 | $ | 3,113 | $ | 3,395 | $ | 12,672 | |||||||||||||||
2013 | 3,035 | 3,075 | 3,028 | 3,325 | 12,464 | ||||||||||||||||||||
Net Earnings | |||||||||||||||||||||||||
2014 | $ | 953 | $ | 902 | $ | 762 | $ | 448 | $ | 3,065 | |||||||||||||||
2013 | 864 | 646 | 988 | 969 | 3,467 | ||||||||||||||||||||
Basic Earnings per Share | |||||||||||||||||||||||||
2014 | $ | 0.94 | $ | 0.9 | $ | 0.76 | $ | 0.45 | 3.06 | ||||||||||||||||
2013 | 0.84 | 0.63 | 0.98 | 0.96 | 3.4 | ||||||||||||||||||||
Diluted Earnings per Share | |||||||||||||||||||||||||
2014 | $ | 0.93 | $ | 0.89 | $ | 0.75 | $ | 0.44 | 3.02 | ||||||||||||||||
2013 | 0.83 | 0.63 | 0.97 | 0.95 | 3.37 |
Acquisitions_and_AcquisitionRe2
Acquisitions and Acquisition-Related Items (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||
Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Jun. 13, 2014 | Jun. 13, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Apr. 26, 2013 | Dec. 30, 2013 | Dec. 30, 2013 | Dec. 30, 2013 | Dec. 30, 2013 | Dec. 30, 2013 | Dec. 30, 2013 | Nov. 01, 2012 | Apr. 25, 2014 | Apr. 26, 2013 | Nov. 01, 2012 | Nov. 01, 2012 | Aug. 07, 2013 | Aug. 07, 2013 | Aug. 07, 2013 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Aug. 31, 2011 | Aug. 31, 2011 | Apr. 27, 2012 | Apr. 27, 2012 | Jun. 15, 2014 | Jun. 13, 2014 | Jun. 15, 2014 | Jun. 15, 2014 | Jul. 25, 2014 | Jul. 25, 2014 | Jul. 25, 2014 | Jul. 25, 2014 | Jun. 20, 2014 | Jun. 20, 2014 | Jun. 20, 2014 | Jun. 20, 2014 | Aug. 26, 2014 | Aug. 26, 2014 | Aug. 25, 2014 | |
Subsequent Event | Change in the Amount of Contingent Consideration | Change in the Amount of Contingent Consideration | Change in the Amount of Contingent Consideration | Impairment of Acquired in Process Research and Development | TYRX | TYRX | TYRX | TYRX | TYRX | TYRX | China Kanghui Holdings | China Kanghui Holdings | China Kanghui Holdings | China Kanghui Holdings | China Kanghui Holdings | Cardiocom | Cardiocom | Cardiocom | Ardian | Ardian | Ardian | Salient | PEAK | Salient Surgical Technologies - Gain on Previously Held Investment | Peak Surgical - Gain on Previously Held Investment | Covidien PLC | Covidien PLC | Covidien PLC | New Medtronic | Visualase | Visualase | Visualase | Visualase | Corventis | Corventis | Corventis | Corventis | NGC Medical SpA | NGC Medical SpA | Sapiens Steering Brain Stimulation | |||||||
Technology-Based Intangible Assets | Technology-Based Intangible Assets | Product development-based payments | Revenue-based payments | Technology-Based | Trade Names | Customer-Related Intangible Assets | Customer-Related Intangibles | Impairment of Long-Lived Assets | Impairment of Acquired in Process Research and Development | Impairment of Long-Lived Assets other than Acquired in Process Research and Development | Subsequent Event | Covidien PLC | Technology-Based Intangible Assets | Technology-Based Intangible Assets | Technology-Based Intangible Assets | Technology-Based Intangible Assets | Subsequent Event | Subsequent Event | Subsequent Event | ||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Consideration Transferred Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $35.19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Securities Called by Each Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.956 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and stock value of pending acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $42,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share price | ' | ' | ' | ' | ' | $60.70 | $60.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction termination fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 850,000,000 | ' | 850,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 222,000,000 | ' | ' | ' | ' | ' | 816,000,000 | ' | ' | ' | ' | 193,000,000 | ' | ' | ' | ' | ' | 497,000,000 | 113,000,000 | ' | ' | ' | ' | 42,900,000,000 | ' | 97,000,000 | ' | ' | ' | 131,000,000 | ' | ' | ' | 238,000,000 | ' | 200,000,000 |
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94,000,000 | ' | 94,000,000 | ' | ' | 341,000,000 | ' | ' | ' | ' | 61,000,000 | 61,000,000 | ' | ' | ' | ' | 154,000,000 | 74,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66,000,000 | ' | ' | ' | 80,000,000 | ' | ' | ' |
Goodwill | 10,696,000,000 | ' | 10,593,000,000 | 10,329,000,000 | 9,934,000,000 | ' | ' | ' | ' | ' | ' | ' | 132,000,000 | ' | ' | ' | ' | 409,000,000 | ' | ' | ' | ' | 123,000,000 | ' | ' | ' | ' | ' | 348,000,000 | 56,000,000 | ' | ' | ' | ' | ' | ' | ' | 49,000,000 | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' |
Other Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived intangible asset, useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '14 years | ' | ' | ' | '11 years | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | '12 years | '12 years | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | '16 years | ' | ' | ' | ' |
Finite-lived intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 288,000,000 | 53,000,000 | ' | ' | ' | ' | ' | ' | ' | 74,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement of outstanding debt to Medtronic included in consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' |
Payments to Acquire Business, Net of Cash Acquired | 146,000,000 | 17,000,000 | 385,000,000 | 820,000,000 | 556,000,000 | ' | ' | ' | ' | ' | ' | 159,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration | 87,000,000 | 45,000,000 | 68,000,000 | 142,000,000 | 231,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | 106,000,000 | ' | ' | ' | ' | 14,000,000 | ' | ' | ' | ' | ' | 20,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant, and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | 56,000,000 | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | 11,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 233,000,000 | ' | ' | ' | ' | 923,000,000 | ' | ' | ' | ' | 205,000,000 | ' | ' | ' | ' | ' | 578,000,000 | 140,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | 29,000,000 | ' | ' | ' | ' | 12,000,000 | ' | ' | ' | ' | ' | 43,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term deferred tax liabilities, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | 77,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,000,000 | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | ' | ' | ' | ' | 107,000,000 | ' | ' | ' | ' | 12,000,000 | ' | ' | ' | ' | ' | 81,000,000 | 27,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 222,000,000 | ' | ' | ' | ' | 816,000,000 | ' | ' | ' | ' | 193,000,000 | ' | ' | ' | ' | ' | 497,000,000 | 113,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preexisting Relationship, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.90% | 18.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' |
Acquisition-related items | 41,000,000 | -96,000,000 | 117,000,000 | -49,000,000 | 12,000,000 | ' | ' | 138,000,000 | -62,000,000 | 45,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 13,000,000 | ' | ' | ' | ' | ' | 236,000,000 | 192,000,000 | 44,000,000 | ' | ' | 32,000,000 | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction value net of acquired cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 797,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
IPR&D | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other long-term liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Nov-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of contingent consideration | -1,000,000 | 96,000,000 | 138,000,000 | 62,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net value of acquistion transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $452,000,000 | $96,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisitions_and_AcquisitionRe3
Acquisitions and Acquisition-Related Items, Contingent Consideration (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 |
Fair Value Inputs | ' | ' | ' | ' |
Contingent consideration | $87 | $45 | $68 | $142 |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions | ' | ' | ' | ' |
Beginning Balance | 68 | 142 | 142 | 231 |
Purchase price contingent consideration | 23 | 0 | 65 | 3 |
Contingent milestone payments | -5 | -1 | -1 | -30 |
Change in fair value of contingent consideration | 1 | -96 | -138 | -62 |
Ending balance | 87 | 45 | 68 | 142 |
Other Long-term Liabilities | ' | ' | ' | ' |
Fair Value Inputs | ' | ' | ' | ' |
Contingent consideration | 68 | ' | 51 | 120 |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions | ' | ' | ' | ' |
Ending balance | 68 | ' | 51 | 120 |
Other Accrued Expenses | ' | ' | ' | ' |
Fair Value Inputs | ' | ' | ' | ' |
Contingent consideration | 19 | ' | 17 | 22 |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions | ' | ' | ' | ' |
Ending balance | 19 | ' | 17 | 22 |
Business combinations or purchases of intellectual property prior to April 24, 2009 | ' | ' | ' | ' |
Fair Value Inputs | ' | ' | ' | ' |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 198 | ' | 199 | ' |
Recurring | ' | ' | ' | ' |
Fair Value Inputs | ' | ' | ' | ' |
Contingent consideration | 87 | ' | 68 | 142 |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions | ' | ' | ' | ' |
Ending balance | 87 | ' | 68 | 142 |
Recurring | Level 3 | ' | ' | ' | ' |
Fair Value Inputs | ' | ' | ' | ' |
Contingent consideration | 87 | ' | 68 | 142 |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions | ' | ' | ' | ' |
Ending balance | 87 | ' | 68 | 142 |
Revenue-based payments | Recurring | Level 3 | ' | ' | ' | ' |
Fair Value Inputs | ' | ' | ' | ' |
Probability of payment | 100.00% | ' | 100.00% | ' |
Revenue-based payments | Discounted Cash Flow | Recurring | Level 3 | ' | ' | ' | ' |
Fair Value Inputs | ' | ' | ' | ' |
Contingent consideration | 62 | ' | 43 | ' |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions | ' | ' | ' | ' |
Ending balance | 62 | ' | 43 | ' |
Product development-based payments | Recurring | Level 3 | ' | ' | ' | ' |
Fair Value Inputs | ' | ' | ' | ' |
Discount rate | 5.50% | ' | 5.50% | ' |
Probability of payment | 75.00% | ' | ' | ' |
Projected fiscal year of payment | '2018 | ' | ' | ' |
Product development-based payments | Discounted Cash Flow | Recurring | Level 3 | ' | ' | ' | ' |
Fair Value Inputs | ' | ' | ' | ' |
Contingent consideration | 25 | ' | 25 | ' |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions | ' | ' | ' | ' |
Ending balance | $25 | ' | $25 | ' |
Minimum | Revenue-based payments | Recurring | Level 3 | ' | ' | ' | ' |
Fair Value Inputs | ' | ' | ' | ' |
Discount rate | 13.50% | ' | 13.50% | ' |
Projected fiscal year of payment | '2015 | ' | '2015 | ' |
Minimum | Product development-based payments | Recurring | Level 3 | ' | ' | ' | ' |
Fair Value Inputs | ' | ' | ' | ' |
Probability of payment | ' | ' | 75.00% | ' |
Projected fiscal year of payment | ' | ' | '2015 | ' |
Maximum | Revenue-based payments | Recurring | Level 3 | ' | ' | ' | ' |
Fair Value Inputs | ' | ' | ' | ' |
Discount rate | 24.00% | ' | 24.00% | ' |
Projected fiscal year of payment | '2019 | ' | '2019 | ' |
Maximum | Product development-based payments | Recurring | Level 3 | ' | ' | ' | ' |
Fair Value Inputs | ' | ' | ' | ' |
Probability of payment | ' | ' | 100.00% | ' |
Projected fiscal year of payment | ' | ' | '2018 | ' |
Special_Charges_and_Certain_Li1
Special Charges and Certain Litigation Charges, Net Special Charges (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Special Charges [Abstract] | ' | ' | ' | ' | ' |
Special Charges | $0 | $40 | $40 | $0 | $0 |
Certain_Litigation_Charges_Net
Certain Litigation Charges, Net (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Feb. 28, 2013 | Oct. 26, 2012 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 27, 2012 | Apr. 27, 2012 | |
Litigation with Edwards Lifesciences Corporation | Litigation with Edwards Lifesciences Corporation | Litigation with Edwards Lifesciences Corporation | Litigation with Edwards Lifesciences Corporation | INFUSE Product Liability Litigation | Federal Securities Class Action Initiated by Minneapolis Firefighters' Relief Association | Federal Securities Class Action Initiated by Minneapolis Firefighters' Relief Association | ||||||
Loss Contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for Legal Settlements | $761,000,000 | $0 | $15,000,000 | $175,000,000 | $241,000,000 | $84,000,000 | ' | ' | ' | ' | ' | ' |
Certain litigation charges, net | ' | ' | 770,000,000 | 245,000,000 | 90,000,000 | ' | 245,000,000 | 589,000,000 | 245,000,000 | 140,000,000 | ' | 90,000,000 |
Settlement amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85,000,000 | ' |
Litigation fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,000,000 | ' |
Restructuring_Charges_Detail
Restructuring Charges (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 26, 2013 | Apr. 26, 2013 | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 26, 2013 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 26, 2013 | Apr. 27, 2012 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Apr. 27, 2012 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Apr. 27, 2012 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Apr. 27, 2012 | Apr. 27, 2012 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Fiscal Year 2014 Initiative | Fiscal Year 2014 Initiative | Fiscal Year 2014 Initiative | Fiscal Year 2014 Initiative | Fiscal Year 2014 Initiative | Fiscal Year 2014 Initiative | Fiscal Year 2014 Initiative | Fiscal Year 2014 Initiative | Fiscal Year 2014 Initiative | Fiscal Year 2014 Initiative | Fiscal Year 2014 Initiative | Fiscal Year 2014 Initiative | Fiscal Year 2014 Initiative | Fiscal Year 2014 Initiative | Fiscal Year 2014 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2013 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | Fiscal Year 2012 Initiative | |
Position | Employee Termination Costs | Employee Termination Costs | Employee Termination Costs | Asset Write-downs | Asset Write-downs | Asset Write-downs | Contract Termination | Other Restructuring | Inventory Write-Offs | Contract Termination and Other Costs | Contract Termination and Other Costs | Contract Termination and Other Costs | Position | Employee Termination Costs | Employee Termination Costs | Employee Termination Costs | Employee Termination Costs | Asset Write-downs | Asset Write-downs | Asset Write-downs | Contract Termination | Contract Termination | Other Restructuring | Other Restructuring | Other Restructuring | Inventory Write-Offs | Contract Termination and Other Costs | Contract Termination and Other Costs | Contract Termination and Other Costs | Position | Employee Termination Costs | Employee Termination Costs | Employee Termination Costs | Employee Termination Costs | Asset Write-downs | Asset Write-downs | Asset Write-downs | Asset Write-downs | Contract Termination | Other Restructuring | Contract Termination and Other Costs | Contract Termination and Other Costs | Contract Termination and Other Costs | |||||||||||
Changes in Restructuring Reserves | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance as of | $75 | ' | $0 | $64 | ' | $0 | $0 | ' | $0 | ' | ' | ' | $11 | ' | $0 | $24 | $170 | ' | $170 | $0 | $23 | ' | $147 | $0 | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | $1 | $23 | $0 | ' | ' | $4 | $91 | $0 | ' | $0 | $64 | $0 | ' | $0 | $0 | $0 | ' | ' | $4 | $27 | $0 |
Restructuring Charges | 38 | 116 | 116 | 1 | 65 | 65 | 9 | 26 | 26 | 3 | 22 | 10 | 28 | 28 | 25 | ' | 18 | 192 | 18 | 192 | ' | 150 | 0 | 150 | 13 | 0 | 13 | 14 | 18 | 4 | 4 | 11 | 10 | ' | 18 | 29 | ' | 118 | ' | ' | 118 | 66 | ' | ' | 66 | 9 | ' | ' | 9 | 30 | 13 | ' | ' | 43 |
Payments/Write-downs | -45 | ' | -41 | -17 | ' | -1 | -9 | ' | -26 | ' | ' | ' | -19 | ' | -14 | -6 | ' | ' | -118 | -22 | -5 | ' | -79 | -3 | ' | 0 | -13 | ' | ' | ' | ' | ' | ' | -1 | -39 | -6 | ' | ' | -4 | -77 | -27 | ' | 0 | -54 | -2 | ' | 0 | 0 | -9 | ' | ' | -4 | -23 | -16 |
Restructuring Reserve, Accrual Adjustment | -6 | ' | ' | -6 | ' | ' | 0 | ' | ' | ' | ' | ' | 0 | ' | ' | -2 | ' | ' | -46 | ' | -2 | ' | -45 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | 0 | -1 | ' | -10 | ' | ' | -10 | ' | ' | ' | -10 | ' | ' | ' | 0 | ' | ' | ' | ' | 0 | ' |
Balance as of | $62 | $75 | $75 | $42 | $64 | $64 | $0 | $0 | $0 | ' | ' | ' | $20 | $11 | $11 | $16 | ' | $170 | $24 | $170 | $16 | $147 | $23 | $147 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | $0 | $1 | $23 | $4 | $91 | $0 | $4 | $91 | $64 | $0 | $0 | $64 | $0 | $0 | $0 | $0 | ' | ' | $0 | $4 | $27 |
Expected number of positions eliminated | ' | 600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments_Investments_Portfo
Investments , Investments Portfolio and AFS Continuous Unrealized Loss Position (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | |||
Trading securities | ' | ' | ' | ' | ' | |||
Aggregate carrying amount of investments in equity and other securities that are accounted for using the cost or equity method | $618 | ' | $666 | $549 | ' | |||
Short-term and long-term investments, cost | 13,354 | ' | 13,659 | 10,896 | ' | |||
Short-term and long-term investments, unrealized gains | 160 | ' | 108 | 185 | ' | |||
Short-term and long-term investments, unrealized losses | -75 | ' | -108 | -27 | ' | |||
Short-term and long-term investments, fair value | 12,821 | ' | 12,993 | 10,505 | ' | |||
AFS Continuous Unrealized Loss Position | ' | ' | ' | ' | ' | |||
Less than 12 months, fair value | 2,782 | ' | 5,032 | 1,044 | ' | |||
Available-For-Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Accumulated Loss | -27 | ' | -90 | -5 | ' | |||
More than 12 months, fair value | 1,630 | ' | 221 | 160 | ' | |||
Available-For-Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Accumulated Loss | -48 | ' | -18 | -22 | ' | |||
AFS OTTI Losses | ' | ' | ' | ' | ' | |||
Total OTTI losses recognized | ' | ' | ' | ' | 6 | |||
OTTI losses recognized in OCI | ' | ' | ' | ' | 4 | |||
OTTI losses recognized in earnings | ' | ' | ' | ' | 2 | |||
Salient and PEAK | ' | ' | ' | ' | ' | |||
AFS Gross Realized Gain (Loss) | ' | ' | ' | ' | ' | |||
Gain on previously held investments | ' | ' | ' | ' | 38 | |||
Debt Securities | ' | ' | ' | ' | ' | |||
AFS Gross Realized Gain (Loss) | ' | ' | ' | ' | ' | |||
Proceeds from sales | 1,830 | 2,163 | 7,991 | [1] | 10,350 | [1] | 7,675 | [1] |
Gross realized gains | 11 | 6 | 15 | [1] | 59 | [1] | 52 | [1] |
Gross realized losses | -3 | -5 | -12 | [1] | -17 | [1] | -16 | [1] |
Impairment losses recognized | 0 | 0 | -1 | [1] | 0 | [1] | -2 | [1] |
Equity Securities | ' | ' | ' | ' | ' | |||
AFS Gross Realized Gain (Loss) | ' | ' | ' | ' | ' | |||
Proceeds from sales | 23 | 32 | 120 | [2] | 161 | [2] | 113 | [2],[3] |
Gross realized gains | 19 | 18 | 69 | [2] | 94 | [2] | 93 | [2],[3] |
Gross realized losses | 0 | 0 | 0 | [2] | 0 | [2] | 0 | [2],[3] |
Impairment losses recognized | -1 | 0 | -9 | [2] | -21 | [2] | -10 | [2],[3] |
Exchange Traded Funds | ' | ' | ' | ' | ' | |||
Investment [Line Items] | ' | ' | ' | ' | ' | |||
Trading securities, cost | 54 | ' | 54 | 45 | ' | |||
Trading securities, unrealized gains | 15 | ' | 13 | 5 | ' | |||
Trading securities, unrealized losses | 0 | ' | 0 | 0 | ' | |||
Trading securities, fair value | 69 | ' | 67 | 50 | ' | |||
Corporate Debt Securities | ' | ' | ' | ' | ' | |||
Investment [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, cost | 5,429 | ' | 5,504 | 4,587 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain, Before Tax | 65 | ' | 55 | 78 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss, Before Tax | -10 | ' | -17 | -4 | ' | |||
Available-for-sale securities, fair value | 5,484 | ' | 5,542 | 4,661 | ' | |||
AFS Continuous Unrealized Loss Position | ' | ' | ' | ' | ' | |||
Less than 12 months, fair value | 1,200 | ' | 1,601 | 544 | ' | |||
Available-For-Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Accumulated Loss | -5 | ' | -14 | -1 | ' | |||
More than 12 months, fair value | 273 | ' | 50 | 13 | ' | |||
Available-For-Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Accumulated Loss | -5 | ' | -3 | -3 | ' | |||
Auction Rate Securities | ' | ' | ' | ' | ' | |||
Investment [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, cost | 109 | ' | 109 | 118 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain, Before Tax | 0 | ' | 0 | 0 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss, Before Tax | -10 | ' | -12 | -15 | ' | |||
Available-for-sale securities, fair value | 99 | ' | 97 | 103 | ' | |||
AFS Continuous Unrealized Loss Position | ' | ' | ' | ' | ' | |||
Less than 12 months, fair value | 0 | ' | 0 | 0 | ' | |||
Available-For-Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Accumulated Loss | 0 | ' | 0 | 0 | ' | |||
More than 12 months, fair value | 99 | ' | 97 | 103 | ' | |||
Available-For-Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Accumulated Loss | -10 | ' | -12 | -15 | ' | |||
Mortgage Backed Securities | ' | ' | ' | ' | ' | |||
Investment [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, cost | 1,252 | ' | 1,337 | 1,050 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain, Before Tax | 10 | ' | 7 | 8 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss, Before Tax | -8 | ' | -8 | -5 | ' | |||
Available-for-sale securities, fair value | 1,254 | ' | 1,336 | 1,053 | ' | |||
AFS Continuous Unrealized Loss Position | ' | ' | ' | ' | ' | |||
Less than 12 months, fair value | 353 | ' | 682 | 195 | ' | |||
Available-For-Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Accumulated Loss | -3 | ' | -7 | -1 | ' | |||
More than 12 months, fair value | 333 | ' | 28 | 44 | ' | |||
Available-For-Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Accumulated Loss | -5 | ' | -1 | -4 | ' | |||
US Government and Agency Securities | ' | ' | ' | ' | ' | |||
Investment [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, cost | 2,748 | ' | 3,138 | 3,882 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain, Before Tax | 7 | ' | 7 | 17 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss, Before Tax | -22 | ' | -29 | -1 | ' | |||
Available-for-sale securities, fair value | 2,733 | ' | 3,116 | 3,898 | ' | |||
AFS Continuous Unrealized Loss Position | ' | ' | ' | ' | ' | |||
Less than 12 months, fair value | 754 | ' | 1,500 | 291 | ' | |||
Available-For-Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Accumulated Loss | -1 | ' | -27 | -1 | ' | |||
More than 12 months, fair value | 784 | ' | 46 | 0 | ' | |||
Available-For-Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Accumulated Loss | -21 | ' | -2 | 0 | ' | |||
Foreign Government Debt Securities | ' | ' | ' | ' | ' | |||
Investment [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, cost | 78 | ' | 67 | 38 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain, Before Tax | 0 | ' | 0 | 0 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss, Before Tax | 0 | ' | 0 | 0 | ' | |||
Available-for-sale securities, fair value | 78 | ' | 67 | 38 | ' | |||
Certificates of Deposit | ' | ' | ' | ' | ' | |||
Investment [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, cost | 71 | ' | 54 | 6 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain, Before Tax | 0 | ' | 0 | 0 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss, Before Tax | 0 | ' | 0 | 0 | ' | |||
Available-for-sale securities, fair value | 71 | ' | 54 | 6 | ' | |||
Asset-backed Securities | ' | ' | ' | ' | ' | |||
Investment [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, cost | 497 | ' | 540 | 539 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain, Before Tax | 1 | ' | 2 | 2 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss, Before Tax | 0 | ' | 0 | 0 | ' | |||
Available-for-sale securities, fair value | 498 | ' | 542 | 541 | ' | |||
Debt Funds | ' | ' | ' | ' | ' | |||
Investment [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, cost | 2,446 | ' | 2,143 | ' | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain, Before Tax | 48 | ' | 9 | ' | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss, Before Tax | -8 | ' | -29 | ' | ' | |||
Available-for-sale securities, fair value | 2,486 | ' | 2,123 | ' | ' | |||
AFS Continuous Unrealized Loss Position | ' | ' | ' | ' | ' | |||
Less than 12 months, fair value | 454 | ' | 1,224 | ' | ' | |||
Available-For-Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Accumulated Loss | -1 | ' | -29 | ' | ' | |||
More than 12 months, fair value | 141 | ' | 0 | ' | ' | |||
Available-For-Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Accumulated Loss | -7 | ' | 0 | ' | ' | |||
Available for Sale Securities | ' | ' | ' | ' | ' | |||
Investment [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale securities, cost | 52 | ' | 47 | 82 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain, Before Tax | 14 | ' | 15 | 75 | ' | |||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss, Before Tax | -17 | ' | -13 | -2 | ' | |||
Available-for-sale securities, fair value | 49 | ' | 49 | 155 | ' | |||
AFS Continuous Unrealized Loss Position | ' | ' | ' | ' | ' | |||
Less than 12 months, fair value | 21 | ' | 25 | 14 | ' | |||
Available-For-Sale Securities, Continuous Unrealized Loss Position, Less Than 12 Months, Accumulated Loss | -17 | ' | -13 | -2 | ' | |||
More than 12 months, fair value | ' | ' | ' | 0 | ' | |||
Available-For-Sale Securities, Continuous Unrealized Loss Position, 12 Months Or Longer, Accumulated Loss | $0 | ' | $0 | $0 | ' | |||
[1] | Includes available-for-sale debt securities. | |||||||
[2] | Includes marketable equity securities, cost method, equity method, exchange-traded funds, and other investments. | |||||||
[3] | As a result of the Salient and PEAK acquisitions that occurred during fiscal year 2012, the Company recognized a non-cash gain of $38 million on its previously-held minority investments. |
Investments_Marketable_Securit
Investments , Marketable Securities, Credit Losses on and Maturities of Debt Securities (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 |
Available-for-sale securities | ' | ' | ' |
Investments | $12,838 | $10,211 | $12,626 |
Long-term Investments | 821 | 843 | 813 |
Credit Loss Portion of Other-than-temporary Impairments on Debt Securities | ' | ' | ' |
Ending balance | 4 | 9 | 4 |
Beginning Balance | 9 | 20 | 4 |
Reductions for securities sold during the period | 5 | 11 | ' |
Ending Balance | 4 | 9 | 4 |
AFS Debt Maturities | ' | ' | ' |
Due in one year or less | 1,412 | ' | 1,426 |
Due after one year through five years | 6,368 | ' | 5,961 |
Due after five years through 10 years | 2,859 | ' | 2,689 |
Due after 10 years | 115 | ' | 141 |
Total debt securities | 10,754 | ' | 10,217 |
Investments | ' | ' | ' |
Available-for-sale securities | ' | ' | ' |
Available-for-sale securities, fair value | 12,771 | ' | 12,557 |
Trading securities | 67 | 50 | 69 |
Cost method, equity method, and other investments | 0 | 0 | 0 |
Other Assets | ' | ' | ' |
Available-for-sale securities | ' | ' | ' |
Available-for-sale securities, fair value | 155 | ' | 195 |
Trading securities | 0 | 0 | 0 |
Cost method, equity method, and other investments | $666 | $549 | $618 |
Investments_Other_Disclosures_
Investments , Other Disclosures (Detail) (USD $) | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 |
In Millions, unless otherwise specified | |||
Investments [Abstract] | ' | ' | ' |
Aggregate carrying amount of investments in equity and other securities that are accounted for using the cost or equity method | $618 | $666 | $549 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements, Fair Value Measured on Recurring Basis (Detail) (USD $) | Jul. 25, 2014 | Apr. 25, 2014 | Jul. 26, 2013 | Apr. 26, 2013 | Apr. 27, 2012 |
In Millions, unless otherwise specified | |||||
Liabilities: | ' | ' | ' | ' | ' |
Contingent consideration | $87 | $68 | $45 | $142 | $231 |
Recurring | ' | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' | ' |
Corporate debt securities | 5,484 | 5,542 | ' | 4,661 | ' |
Auction rate securities | 99 | 97 | ' | 103 | ' |
Mortgage-backed securities | 1,254 | 1,336 | ' | 1,053 | ' |
U.S. government and agency securities | 2,733 | 3,116 | ' | 3,898 | ' |
Foreign government and agency securities | 78 | 67 | ' | 38 | ' |
Certificates of deposit | 71 | 54 | ' | 6 | ' |
Other asset-backed securities | 498 | 542 | ' | 541 | ' |
Debt Funds | 2,486 | 2,123 | ' | ' | ' |
Marketable equity securities | 49 | 49 | ' | 155 | ' |
Exchange-traded funds | 69 | 67 | ' | 50 | ' |
Derivative assets | 176 | 175 | ' | 394 | ' |
Total assets | 12,997 | 13,168 | ' | 10,899 | ' |
Liabilities: | ' | ' | ' | ' | ' |
Derivative liabilities | 68 | 127 | ' | 58 | ' |
Contingent consideration | 87 | 68 | ' | 142 | ' |
Total liabilities | 155 | 195 | ' | 200 | ' |
Recurring | Level 1 | ' | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' | ' |
Corporate debt securities | 0 | 0 | ' | 0 | ' |
Auction rate securities | 0 | 0 | ' | 0 | ' |
Mortgage-backed securities | 0 | 0 | ' | 0 | ' |
U.S. government and agency securities | 1,135 | 1,251 | ' | 1,833 | ' |
Foreign government and agency securities | 0 | 0 | ' | 0 | ' |
Certificates of deposit | 0 | 0 | ' | 0 | ' |
Other asset-backed securities | 0 | 0 | ' | 0 | ' |
Debt Funds | 0 | 0 | ' | ' | ' |
Marketable equity securities | 49 | 49 | ' | 155 | ' |
Exchange-traded funds | 69 | 67 | ' | 50 | ' |
Derivative assets | 96 | 89 | ' | 213 | ' |
Total assets | 1,349 | 1,456 | ' | 2,251 | ' |
Liabilities: | ' | ' | ' | ' | ' |
Derivative liabilities | 68 | 116 | ' | 40 | ' |
Contingent consideration | 0 | 0 | ' | 0 | ' |
Total liabilities | 68 | 116 | ' | 40 | ' |
Recurring | Level 2 | ' | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' | ' |
Corporate debt securities | 5,475 | 5,533 | ' | 4,651 | ' |
Auction rate securities | 0 | 0 | ' | 0 | ' |
Mortgage-backed securities | 1,254 | 1,336 | ' | 1,039 | ' |
U.S. government and agency securities | 1,598 | 1,865 | ' | 2,065 | ' |
Foreign government and agency securities | 78 | 67 | ' | 38 | ' |
Certificates of deposit | 71 | 54 | ' | 6 | ' |
Other asset-backed securities | 498 | 542 | ' | 541 | ' |
Debt Funds | 2,486 | 2,123 | ' | ' | ' |
Marketable equity securities | 0 | 0 | ' | 0 | ' |
Exchange-traded funds | 0 | 0 | ' | 0 | ' |
Derivative assets | 80 | 86 | ' | 181 | ' |
Total assets | 11,540 | 11,606 | ' | 8,521 | ' |
Liabilities: | ' | ' | ' | ' | ' |
Derivative liabilities | 0 | 11 | ' | 18 | ' |
Contingent consideration | 0 | 0 | ' | 0 | ' |
Total liabilities | 0 | 11 | ' | 18 | ' |
Recurring | Level 3 | ' | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' | ' |
Corporate debt securities | 9 | 9 | ' | 10 | ' |
Auction rate securities | 99 | 97 | ' | 103 | ' |
Mortgage-backed securities | 0 | 0 | ' | 14 | ' |
U.S. government and agency securities | 0 | 0 | ' | 0 | ' |
Foreign government and agency securities | 0 | 0 | ' | 0 | ' |
Certificates of deposit | 0 | 0 | ' | 0 | ' |
Other asset-backed securities | 0 | 0 | ' | 0 | ' |
Debt Funds | 0 | 0 | ' | ' | ' |
Marketable equity securities | 0 | 0 | ' | 0 | ' |
Exchange-traded funds | 0 | 0 | ' | 0 | ' |
Derivative assets | 0 | 0 | ' | 0 | ' |
Total assets | 108 | 106 | ' | 127 | ' |
Liabilities: | ' | ' | ' | ' | ' |
Derivative liabilities | 0 | 0 | ' | 0 | ' |
Contingent consideration | 87 | 68 | ' | 142 | ' |
Total liabilities | $87 | $68 | ' | $142 | ' |
Fair_Value_Measurements_Valuat
Fair Value Measurements, Valuation Techniques (Detail) (Level 3, Recurring, USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' | ' |
Beginning balance | $106 | $127 | $127 | $172 |
Total realized gains(losses) and other-than-temporary impairment losses included in earnings | ' | ' | -5 | ' |
Total unrealized gains (losses) included in other comprehensive income | 2 | 5 | 4 | 11 |
Settlements | ' | ' | -20 | -56 |
Ending balance | 108 | 132 | 106 | 127 |
Corporate Debt Securities | ' | ' | ' | ' |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' | ' |
Beginning balance | ' | 10 | 10 | 10 |
Total realized gains(losses) and other-than-temporary impairment losses included in earnings | ' | ' | 0 | ' |
Total unrealized gains (losses) included in other comprehensive income | ' | ' | 0 | 0 |
Settlements | ' | ' | -1 | 0 |
Ending balance | 9 | 10 | 9 | 10 |
Auction Rate Securities | ' | ' | ' | ' |
Illiquidity premium | ' | ' | 6.00% | ' |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' | ' |
Beginning balance | 97 | 103 | 103 | 127 |
Total realized gains(losses) and other-than-temporary impairment losses included in earnings | ' | ' | -5 | ' |
Total unrealized gains (losses) included in other comprehensive income | 2 | 4 | 3 | 11 |
Settlements | ' | ' | -4 | -35 |
Ending balance | 99 | 107 | 97 | 103 |
Auction Rate Securities | Minimum | ' | ' | ' | ' |
Years to Principal Recovery | ' | ' | '2 years | ' |
Auction Rate Securities | Maximum | ' | ' | ' | ' |
Years to Principal Recovery | ' | ' | '12 years | ' |
Auction Rate Securities | Weighted Average | ' | ' | ' | ' |
Years to Principal Recovery | ' | ' | '3 years | ' |
Mortgage Backed Securities | ' | ' | ' | ' |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' | ' |
Beginning balance | ' | 14 | 14 | 29 |
Total realized gains(losses) and other-than-temporary impairment losses included in earnings | ' | ' | 0 | ' |
Total unrealized gains (losses) included in other comprehensive income | ' | 1 | 1 | 0 |
Settlements | ' | ' | -15 | -15 |
Ending balance | ' | 15 | 0 | 14 |
Asset-backed Securities | ' | ' | ' | ' |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' | ' |
Beginning balance | ' | 0 | 0 | 6 |
Total realized gains(losses) and other-than-temporary impairment losses included in earnings | ' | ' | 0 | ' |
Total unrealized gains (losses) included in other comprehensive income | ' | ' | 0 | 0 |
Settlements | ' | ' | 0 | -6 |
Ending balance | ' | ' | $0 | $0 |
Discounted Cash Flow | Auction Rate Securities | ' | ' | ' | ' |
Illiquidity premium | 6.00% | ' | ' | ' |
Discounted Cash Flow | Auction Rate Securities | Minimum | ' | ' | ' | ' |
Years to Principal Recovery | '2 years | ' | ' | ' |
Discounted Cash Flow | Auction Rate Securities | Maximum | ' | ' | ' | ' |
Years to Principal Recovery | '12 years | ' | ' | ' |
Discounted Cash Flow | Auction Rate Securities | Weighted Average | ' | ' | ' | ' |
Years to Principal Recovery | '3 years | ' | ' | ' |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements, Fair Value Measured on Nonrecurring Basis and Financial Instruments Not Measured at Fair Value (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 26, 2013 | Nov. 01, 2012 | Aug. 07, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Apr. 25, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 |
Impairment of Acquired in Process Research and Development | In Process Research and Development | In Process Research and Development | In Process Research and Development | China Kanghui Holdings | China Kanghui Holdings | Cardiocom | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | ||||||
Impairment of Acquired in Process Research and Development | In Process Research and Development | In Process Research and Development | China Kanghui Holdings | China Kanghui Holdings | Cardiocom | Cardiocom | Ardian | |||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate carrying amount of investments in equity and other securities that are accounted for using the cost or equity method | $618 | ' | $666 | $549 | ' | ' | ' | ' | ' | ' | ' | ' | $618 | $666 | $549 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying amount of goodwill | 10,696 | ' | 10,593 | 10,329 | 9,934 | ' | ' | ' | ' | ' | 409 | 123 | 10,696 | 10,593 | 10,329 | ' | ' | ' | ' | 410 | 409 | 123 | 123 | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | ' | ' | ' | ' | ' | ' | 116 | 119 | 363 | ' | ' | ' | ' | ' | ' | ' | ' | 116 | 119 | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Net | 2,225 | ' | 2,167 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,225 | 2,167 | 2,310 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of Property, Plant and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | 16 | 6 | 9 | ' | ' | ' | ' | ' | ' | ' | 3 |
Long-term debt, fair value | 11,873 | ' | 11,856 | 10,820 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, principal value | 11,375 | ' | 11,375 | 9,928 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost-method investment impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | 21 | 10 | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying amount of IPR&D | ' | ' | 119 | 363 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition-related items | 41 | -96 | 117 | -49 | 12 | 5 | ' | ' | ' | 13 | ' | ' | ' | ' | ' | ' | 207 | ' | ' | ' | ' | ' | ' | ' |
Intangible assets measured on a nonrecurring basis as a percentage of total intangible assets, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial Instruments Not Measured at Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, fair value | 11,873 | ' | 11,856 | 10,820 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, principal value | $11,375 | ' | $11,375 | $9,928 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing_Arrangements_Detail
Financing Arrangements (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share data in Millions, unless otherwise specified | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Jul. 25, 2014 | Jul. 25, 2014 | Jul. 25, 2014 | Jul. 25, 2014 | Jul. 25, 2014 | Jul. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Jul. 25, 2014 | Jul. 25, 2014 | Jul. 25, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Feb. 28, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Feb. 28, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Feb. 28, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Feb. 28, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Feb. 28, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Feb. 28, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Mar. 31, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Mar. 31, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Mar. 31, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Mar. 31, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 |
Covidien PLC | Short-term Debt | Short-term Debt | Long-term Debt | Long-term Debt | Debt Instrument, Unamortized Debt Discount | Line Of Credit Facility 2017 | Senior Notes 2010 Due 2015 | Senior Notes 2005 Due 2016 | Senior Notes 2011 Due 2016 | Senior Notes 2011 Due 2021 | Senior Notes 2012 Due 2022 | Senior Convertible Notes | Senior Unsecured Bridge Credit Agreement | Senior Unsecured Bridge Credit Agreement | Senior Unsecured Cash Bridge Credit Agreement | Senior Unsecured Cash Bridge Credit Agreement | Commercial Paper | Commercial Paper | Commercial Paper | Commercial Paper | Commercial Paper | Credit Facility | Credit Facility | Credit Facility | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Convertible Notes | Senior Convertible Notes | Senior Convertible Notes | Capital Lease Obligations | Capital Lease Obligations | Capital Lease Obligations | Capital Lease Obligations | Capital Lease Obligations | Capital Lease Obligations | Bank Borrowings | Bank Borrowings | Bank Borrowings | Bank Borrowings | Bank Borrowings | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | ||||
Bridge Loan | Bridge Loan | Bridge Loan | Bridge Loan | Short-term Debt | Short-term Debt | Line Of Credit Facility 2017 | Line Of Credit Facility 2017 | Senior Notes 2014 | Senior Notes 2014 Due 2017 Floating | Senior Notes 2014 Due 2017 Floating | Senior Notes 2014 Due 2017 Floating | Senior Notes 2014 Due 2017 Floating | Senior Notes 2014 Due 2017 Floating | Senior Notes 2014 Due 2017 | Senior Notes 2014 Due 2017 | Senior Notes 2014 Due 2017 | Senior Notes 2014 Due 2017 | Senior Notes 2014 Due 2017 | Senior Notes 2014 Due 2017 | Senior Notes 2014 Due 2024 | Senior Notes 2014 Due 2024 | Senior Notes 2014 Due 2024 | Senior Notes 2014 Due 2024 | Senior Notes 2014 Due 2024 | Senior Notes 2014 Due 2044 | Senior Notes 2014 Due 2044 | Senior Notes 2014 Due 2044 | Senior Notes 2014 Due 2044 | Senior Notes 2014 Due 2044 | 2013 Senior Notes | Senior Notes 2013 Due 2018 | Senior Notes 2013 Due 2018 | Senior Notes 2013 Due 2018 | Senior Notes 2013 Due 2018 | Senior Notes 2013 Due 2018 | Senior Notes 2013 Due 2018 | Senior Notes 2013 Due 2023 | Senior Notes 2013 Due 2023 | Senior Notes 2013 Due 2023 | Senior Notes 2013 Due 2023 | Senior Notes 2013 Due 2023 | Senior Notes 2013 Due 2043 | Senior Notes 2013 Due 2043 | Senior Notes 2013 Due 2043 | Senior Notes 2013 Due 2043 | Senior Notes 2013 Due 2043 | Senior Notes 2009 Due 2014 | Senior Notes 2009 Due 2014 | Senior Notes 2009 Due 2014 | Senior Notes 2009 Due 2019 | Senior Notes 2009 Due 2019 | Senior Notes 2009 Due 2019 | Senior Notes 2009 Due 2019 | Senior Notes 2009 Due 2039 | Senior Notes 2009 Due 2039 | Senior Notes 2009 Due 2039 | Senior Notes 2009 Due 2039 | Senior Notes 2010 Due 2020 | Senior Notes 2010 Due 2020 | Senior Notes 2010 Due 2020 | Senior Notes 2010 Due 2020 | Senior Notes 2010 Due 2040 | Senior Notes 2010 Due 2040 | Senior Notes 2010 Due 2040 | Senior Notes 2010 Due 2040 | Senior Notes 2012 Due 2042 | Senior Notes 2012 Due 2042 | Senior Notes 2012 Due 2042 | Senior Notes 2012 Due 2042 | Senior Notes 2010 Due 2015 | Senior Notes 2010 Due 2015 | Senior Notes 2010 Due 2015 | Senior Notes 2010 Due 2015 | Senior Notes 2010 Due 2015 | Senior Notes 2010 Due 2015 | Senior Notes 2005 Due 2016 | Senior Notes 2005 Due 2016 | Senior Notes 2005 Due 2016 | Senior Notes 2005 Due 2016 | Senior Notes 2005 Due 2016 | Senior Notes 2011 Due 2016 | Senior Notes 2011 Due 2016 | Senior Notes 2011 Due 2016 | Senior Notes 2011 Due 2016 | Senior Notes 2011 Due 2016 | Senior Notes 2011 Due 2021 | Senior Notes 2011 Due 2021 | Senior Notes 2011 Due 2021 | Senior Notes 2011 Due 2021 | Senior Notes 2011 Due 2021 | Senior Notes 2012 Due 2022 | Senior Notes 2012 Due 2022 | Senior Notes 2012 Due 2022 | Senior Notes 2012 Due 2022 | Senior Notes 2012 Due 2022 | Senior Convertible Notes Due 2011 | Senior Convertible Notes Due 2013 | Senior Convertible Notes Due 2013 | Short-term Debt | Short-term Debt | Long-term Debt | Long-term Debt | Short-term Debt | Short-term Debt | Long-term Debt | Long-term Debt | Short-term Debt | Short-term Debt | Long-term Debt | Long-term Debt | ||||||||||||||||||||||||||
Parent Company | Parent Company | IrSub | IrSub | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Three-Month LIBOR | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Short-term Debt | Short-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Short-term Debt | Short-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | Long-term Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term borrowings | $2,477,000,000 | $1,613,000,000 | $910,000,000 | ' | $1,613,000,000 | $910,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $830,000,000 | ' | $125,000,000 | $0 | $125,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $550,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14,000,000 | $14,000,000 | ' | ' | ' | $337,000,000 | $221,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum credit available | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,250,000,000 | 2,250,000,000 | ' | ' | ' | ' | 2,250,000,000 | 2,250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum maturities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '364 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term debt, Weighted Average Original Maturity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '28 days | '53 days | '89 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, Weighted Average Interest Rate During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.10% | 0.09% | 0.18% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Length of extension from maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future funding available under debt bridge credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '364 days | ' | '60 days | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional Cash required to finance the cash component of transaction | ' | ' | ' | 13,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future funding available under cash bridge credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 10,323,000,000 | 10,315,000,000 | 9,741,000,000 | ' | ' | ' | 10,315,000,000 | 9,741,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | 250,000,000 | ' | 250,000,000 | 0 | 250,000,000 | 250,000,000 | ' | 250,000,000 | 0 | ' | 850,000,000 | 850,000,000 | ' | 850,000,000 | 0 | 650,000,000 | 650,000,000 | ' | 650,000,000 | 0 | ' | 1,000,000,000 | 1,000,000,000 | ' | ' | 1,000,000,000 | 1,000,000,000 | 1,250,000,000 | 1,250,000,000 | ' | 1,250,000,000 | 1,250,000,000 | 750,000,000 | 750,000,000 | ' | 750,000,000 | 750,000,000 | ' | ' | ' | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | 1,250,000,000 | 1,250,000,000 | 1,250,000,000 | 1,250,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | ' | ' | 1,250,000,000 | 0 | 0 | 1,250,000,000 | 600,000,000 | 600,000,000 | ' | 600,000,000 | 600,000,000 | 500,000,000 | 500,000,000 | ' | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | ' | 500,000,000 | 500,000,000 | 675,000,000 | 675,000,000 | ' | 675,000,000 | 675,000,000 | ' | ' | ' | 136,000,000 | 139,000,000 | ' | ' | 139,000,000 | 152,000,000 | ' | ' | ' | 0 | 3,000,000 | 71,000,000 | 56,000,000 | 12,000,000 | 0 | 56,000,000 | 181,000,000 |
Stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 4.75% | 2.63% | 4.13% | 3.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.88% | 0.88% | 0.88% | ' | ' | ' | 3.63% | 3.63% | 3.63% | ' | ' | 4.63% | 4.63% | 4.63% | ' | ' | ' | 1.38% | 1.38% | ' | 1.38% | ' | ' | 2.75% | 2.75% | 2.75% | ' | ' | 4.00% | 4.00% | 4.00% | ' | ' | 4.50% | ' | ' | 5.60% | 5.60% | ' | ' | 6.50% | 6.50% | ' | ' | 4.45% | 4.45% | ' | ' | 5.55% | 5.55% | ' | ' | 4.50% | 4.50% | ' | ' | 3.00% | 3.00% | ' | ' | ' | ' | 4.75% | 4.75% | 4.75% | ' | ' | 2.63% | 2.63% | 2.63% | ' | ' | 4.13% | 4.13% | 4.13% | ' | ' | 3.13% | 3.13% | 3.13% | ' | ' | 1.50% | 1.63% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Maturity Date, Year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2014 | ' | ' | ' | ' | ' | '2017 | '2017 | ' | ' | ' | '2017 | '2017 | ' | ' | ' | ' | '2024 | '2024 | ' | ' | ' | '2044 | '2044 | ' | ' | ' | ' | '2018 | '2018 | ' | ' | ' | ' | '2023 | '2023 | ' | ' | ' | '2043 | '2043 | ' | ' | ' | '2014 | ' | ' | '2019 | '2019 | ' | ' | '2039 | '2039 | ' | ' | '2020 | '2020 | ' | ' | '2040 | '2040 | ' | ' | '2042 | '2042 | ' | ' | '2015 | ' | ' | ' | ' | ' | '2016 | '2016 | ' | ' | ' | '2016 | '2016 | ' | ' | ' | '2021 | '2021 | ' | ' | ' | '2022 | '2022 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2015 | ' | ' | ' | ' | ' | ' | '2015 | ' | ' | ' |
Debt Instrument, Maturity Date, Year, Earliest | '2017 | ' | ' | ' | ' | ' | ' | ' | '2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2016 | ' | '2014 | ' | '2015 | ' | '2014 | ' | ' | ' | ' | '2016 | '2015 | ' | ' | ' | ' |
Debt Instrument, Maturity Date, Year, Last | '2044 | ' | ' | ' | ' | ' | ' | ' | '2044 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2025 | ' | '2015 | ' | '2025 | ' | '2015 | ' | ' | ' | ' | '2022 | '2022 | ' | ' | ' | ' |
Deferred gains from interest rate swap terminations | 15,000,000 | 20,000,000 | ' | ' | ' | ' | 20,000,000 | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount | -24,000,000 | -25,000,000 | ' | ' | ' | ' | -25,000,000 | -20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250,000,000 | 600,000,000 | 500,000,000 | 500,000,000 | 675,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000,000 | ' | ' | 250,000,000 | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | 850,000,000 | ' | ' | ' | ' | 650,000,000 | ' | ' | 3,000,000,000 | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | 1,250,000,000 | ' | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250,000,000 | 1,250,000,000 | ' | ' | ' | ' | ' | 600,000,000 | 600,000,000 | ' | ' | ' | 500,000,000 | 500,000,000 | ' | ' | ' | 500,000,000 | 500,000,000 | ' | ' | ' | 675,000,000 | 675,000,000 | ' | ' | 2,200,000,000 | ' | 2,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term borrowings | 2,477,000,000 | 1,613,000,000 | 910,000,000 | ' | 1,613,000,000 | 910,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 830,000,000 | ' | 125,000,000 | 0 | 125,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 550,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | 14,000,000 | ' | ' | ' | 337,000,000 | 221,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.21% | ' | ' | ' | ' | ' | ' | ' | 0.32% | 0.00% | ' | ' | ' | 0.91% | 0.00% | ' | ' | ' | ' | 3.65% | 0.00% | ' | ' | ' | 4.67% | 0.00% | ' | ' | 1.41% | 1.41% | ' | ' | ' | ' | ' | ' | 2.78% | 2.78% | ' | ' | ' | 4.12% | 4.12% | ' | 0.00% | 4.50% | ' | ' | 5.61% | 5.61% | ' | ' | 6.52% | 6.52% | ' | ' | 4.47% | 4.47% | ' | ' | 5.56% | 5.56% | ' | ' | 4.51% | 4.51% | ' | ' | 3.00% | 0.00% | 0.00% | 3.00% | ' | ' | ' | 4.76% | 4.76% | ' | ' | ' | 2.72% | 2.72% | ' | ' | ' | 4.19% | 4.19% | ' | ' | ' | 3.16% | 3.16% | ' | ' | ' | ' | ' | 3.33% | 3.30% | 3.62% | 3.59% | ' | 0.35% | 0.57% | ' | 5.00% | ' | ' | ' | ' | ' | ' |
Basis spread on debt variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.09% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercise price (per share) | ' | 76.56 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock settled for warrants (in shares) | ' | 82 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants expired (in shares) | ' | 82 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying amount of the equity component | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 547,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Interest Expense, Contractual Interest Coupon | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | 36,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest cost related to amortization of the discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $90,000,000 | $87,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives_and_Foreign_Exchan2
Derivatives and Foreign Exchange Risk Management , Credit Risk and Other Disclosures (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 27, 2012 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 |
Italy, Spain, Portugal and Greece | Italy, Spain, Portugal and Greece | Italy, Spain, Portugal and Greece | Spain | Spain | Spain | GREECE | GREECE | GREECE | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | ||||||
General Discussion of Derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,306 | $8,051 | $6,812 |
Currency exchange rate gains/(losses) | -12 | 3 | -1 | 25 | -183 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable net of allowance | ' | ' | ' | ' | ' | 619 | 628 | 770 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from customers | ' | ' | ' | ' | ' | ' | ' | ' | 106 | 106 | 212 | ' | ' | ' | ' | ' | ' |
Deferred Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | 15 | 21 | ' | ' | ' |
Derivative Assets and Liabilities, Net, Collateral, Obligation to Return Cash | $0 | ' | $0 | $30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives_and_Foreign_Exchan3
Derivatives and Foreign Exchange Risk Management , Freestanding Derivative Forward Contracts and Cash Flow Hedges (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Feb. 28, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Mar. 31, 2013 | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Apr. 25, 2014 | Jul. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Feb. 28, 2014 | Mar. 31, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 |
Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Other Expense, Net | Other Expense, Net | Other Expense, Net | Other Expense, Net | Other Expense, Net | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | ||||
Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Other Expense, Net | Other Expense, Net | Other Expense, Net | Other Expense, Net | Other Expense, Net | Interest Expense | Interest Expense | Interest Expense | Interest Expense | Cost of Products Sold | Cost of Products Sold | Cost of Products Sold | Cost of Products Sold | Cost of Products Sold | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | |||||||||||||||||
Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Foreign Currency Exchange Rate Contracts | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | ||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | ' | ' | $7,306 | $8,051 | $6,812 | ' | $2,625 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,849 | $5,321 | $4,753 | $250 | $250 | $250 | $750 | $1,985 | $2,202 | $2,059 |
Freestanding Derivative Forward Contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on foreign currency derivatives not designated as hedging instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -24 | 29 | 15 | 26 | 53 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Flow Hedges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum remaining maturity of foreign currency derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) recognized in OCI on effective portion of derivative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62 | -27 | -152 | 121 | 332 | 62 | -27 | -152 | 121 | 332 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective portion of gains (losses) on derivative reclassified from AOCI into income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | 17 | 51 | 101 | -127 | ' | ' | ' | ' | ' | 2 | 32 | 94 | 103 | -141 | 2 | 2 | 8 | 1 | -3 | -15 | -43 | -2 | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fixed rate of interest rate derivatives | ' | ' | ' | ' | ' | ' | ' | 2.83% | 2.83% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) associated with cash flow hedging instruments | ' | ' | ' | ' | ' | ' | ' | ' | 7 | -18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Accumulated Other Comprehensive Income (Loss), Net of Tax | -7 | -44 | 58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flow hedge unrealized gains to be reclassified over the next 12 months | 6 | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | 30 | 0 | 0 | 24 | ' | ' | ' | ' | 68 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash receipts upon termination of hedge | ' | ' | ' | ' | ' | ' | $8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives_and_Foreign_Exchan4
Derivatives and Foreign Exchange Risk Management , Fair Value Hedges (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Apr. 27, 2012 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Jul. 25, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Jul. 31, 2011 | Apr. 25, 2014 | Aug. 31, 2011 | Apr. 25, 2014 | Apr. 25, 2014 | Feb. 28, 2014 | Jul. 25, 2014 | Mar. 31, 2013 | Apr. 25, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Feb. 28, 2014 | Mar. 31, 2013 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 |
Senior Notes 2010 Due 2015 | Senior Notes 2010 Due 2015 | Senior Notes 2010 Due 2015 | Senior Notes 2005 Due 2016 | Senior Notes 2005 Due 2016 | Senior Notes 2005 Due 2016 | Senior Notes 2005 Due 2016 | Senior Notes 2011 Due 2016 | Senior Notes 2011 Due 2016 | Senior Notes 2011 Due 2016 | Senior Notes 2011 Due 2016 | Senior Notes 2011 Due 2021 | Senior Notes 2011 Due 2021 | Senior Notes 2011 Due 2021 | Senior Notes 2011 Due 2021 | Senior Notes 2012 Due 2022 | Senior Notes 2012 Due 2022 | Senior Notes 2012 Due 2022 | Senior Notes 2012 Due 2022 | March 2012 Agreement | Senior Notes 2010 Due 2015 | Senior Notes 2005 Due 2016 | Senior Notes 2011 Due 2016 | Senior Notes 2011 Due 2021 | Senior Notes 2012 Due 2022 | March 2010 Agreement 3 and 2009 Agreements | March 2010 Agreement 3 and 2009 Agreements | March 2010 Agreement 1 | March 2010 Agreement 1 | Senior Notes 2009 Due 2014 | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Fair Value Hedging | Fair Value Hedging | Fair Value Hedging | Fair Value Hedging | Fair Value Hedging | |||||
Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | March 2012 Agreement | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Designated as Hedging Instrument | Designated as Hedging Instrument | ||||||||||||||||||||||||
Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | ||||||||||||||||||||||||||||||||||||||||||
Fair Value Hedges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,625 | ' | ' | $250 | $250 | $250 | $750 | ' | ' | ' | $2,625 | $2,625 |
Interest rate derivatives hedged items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '$1.250 billion 3.000 percent 2010 Senior Notes due 2015 | '$600 million 4.750 percent 2005 Senior Notes due 2016 | '$500 million 2.625 percent 2011 Senior Notes due 2016 | '$500 million 4.125 percent 2011 Senior Notes due 2021 | '$675 million 3.125 percent 2012 Senior Notes due 2022 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The Company's $1.250 billion 3.000 percent 2010 Senior Notes classified as short-term borrowings, the $600 million 4.750 percent 2005 Senior Notes, the $500 million 2.625 percent 2011 Senior Notes, the $500 million 4.125 percent 2011 Senior Notes, and the $675 million 3.125 percent 2012 Senior Notes. | ' | ' | ' | ' |
Principal amount | ' | ' | ' | ' | 1,250 | 1,250 | 1,250 | 600 | ' | 600 | 600 | 500 | ' | 500 | 500 | 500 | ' | 500 | 500 | 675 | ' | 675 | 675 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | 3.00% | 3.00% | 3.00% | 4.75% | 4.75% | 4.75% | 4.75% | 2.63% | 2.63% | 2.63% | 2.63% | 4.13% | 4.13% | 4.13% | 4.13% | 3.13% | 3.13% | 3.13% | 3.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain on interest rate fair value hedging instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80 | ' | ' | ' | ' | ' | ' | ' | 68 | 181 | ' | ' |
Unrealized loss on interest rate fair value hedged items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80 | ' | ' | ' | ' | ' | ' | ' | -68 | -181 | ' | ' |
Derivative, Collateral, Obligation to Return Cash | ' | 0 | 0 | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inception date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Mar-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'One-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on debt variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.92% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Termination date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Jul-11 | ' | 1-Aug-11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of interest rate fair value hedge derivatives discontinued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900 | ' | 650 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Terminated interest rate derivatives hedged items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '$2.200 billion 1.625 percent 2013 Senior Convertible Notes | '$550 million 4.500 percent 2009 Senior Notes due 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash receipts upon termination of hedge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46 | ' | 42 | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative interest accrued on hedge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate fair value hedge ineffectiveness | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives_and_Foreign_Exchan5
Derivatives and Foreign Exchange Risk Management , Balance Sheet Presentation (Detail) (USD $) | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 |
In Millions, unless otherwise specified | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | $176 | $175 | $394 |
Liability derivatives | 68 | 127 | 58 |
Interest Rate Contracts | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 80 | 86 | 181 |
Liability derivatives | ' | 11 | 18 |
Foreign Currency Exchange Rate Contracts | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 96 | 89 | 213 |
Liability derivatives | 68 | 116 | 40 |
Designated as Hedging Instrument | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 175 | 175 | 394 |
Liability derivatives | 67 | 125 | 57 |
Designated as Hedging Instrument | Interest Rate Contracts | Other Accrued Expenses | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Liability derivatives | 0 | 0 | ' |
Designated as Hedging Instrument | Interest Rate Contracts | Other Long-term Liabilities | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Liability derivatives | ' | 11 | 18 |
Designated as Hedging Instrument | Interest Rate Contracts | Prepaid Expenses and Other Current Assets | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 9 | 13 | ' |
Designated as Hedging Instrument | Interest Rate Contracts | Other Assets | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 71 | 73 | 181 |
Designated as Hedging Instrument | Foreign Currency Exchange Rate Contracts | Other Accrued Expenses | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Liability derivatives | 52 | 84 | 34 |
Designated as Hedging Instrument | Foreign Currency Exchange Rate Contracts | Other Long-term Liabilities | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Liability derivatives | 15 | 30 | 5 |
Designated as Hedging Instrument | Foreign Currency Exchange Rate Contracts | Prepaid Expenses and Other Current Assets | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 72 | 81 | 150 |
Designated as Hedging Instrument | Foreign Currency Exchange Rate Contracts | Other Assets | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 23 | 8 | 63 |
Not Designated as Hedging Instrument | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | 1 | 0 | 0 |
Liability derivatives | 1 | 2 | 1 |
Not Designated as Hedging Instrument | Foreign Currency Exchange Rate Contracts | Other Accrued Expenses | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Liability derivatives | 1 | 2 | 1 |
Not Designated as Hedging Instrument | Foreign Currency Exchange Rate Contracts | Prepaid Expenses and Other Current Assets | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Asset derivatives | $1 | $0 | $0 |
Derivatives_and_Foreign_Exchan6
Derivatives and Foreign Exchange Risk Management , Offsetting of Assets and Liabilities (Detail) (USD $) | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 |
In Millions, unless otherwise specified | |||
Offsetting Assets [Line Items] | ' | ' | ' |
Derivative assets, gross amount | $176 | $175 | $394 |
Gross amount not offset on the Balance Sheet, financial instruments | -61 | -95 | -58 |
Gross amount not offset on the Balance Sheet, cash collateral (received) or pledged | 0 | 0 | -30 |
Derivative assets, net amount | 115 | 80 | 306 |
Derivative liabilities, gross amount | -68 | -127 | -58 |
Gross amount not offset on the Balance Sheet, financial instrument | 61 | 95 | 58 |
Gross amount not offset on the Balance Sheet, cash collateral (received) or pledged | ' | 0 | 0 |
Derivative liabilities, net amount | -7 | -32 | 0 |
Total derivatives, gross amount of recognized assets/(liabilities) | 108 | 48 | 336 |
Total derivatives, gross amount not offset on the Balance Sheet, financial instruments | 0 | 0 | 0 |
Total derivatives, gross amount not offset on the Balance Sheet, cash collateral (received) or pledged | 0 | 0 | -30 |
Total derivatives, net amount | 108 | 48 | 306 |
Foreign Currency Exchange Rate Contracts | ' | ' | ' |
Offsetting Assets [Line Items] | ' | ' | ' |
Derivative assets, gross amount | 96 | 89 | 213 |
Gross amount not offset on the Balance Sheet, financial instruments | -50 | -64 | -42 |
Gross amount not offset on the Balance Sheet, cash collateral (received) or pledged | 0 | 0 | -24 |
Derivative assets, net amount | 46 | 25 | 147 |
Derivative liabilities, gross amount | -68 | -116 | -40 |
Gross amount not offset on the Balance Sheet, financial instrument | 61 | 84 | 40 |
Gross amount not offset on the Balance Sheet, cash collateral (received) or pledged | ' | 0 | 0 |
Derivative liabilities, net amount | -7 | -32 | 0 |
Interest Rate Contracts | ' | ' | ' |
Offsetting Assets [Line Items] | ' | ' | ' |
Derivative assets, gross amount | 80 | 86 | 181 |
Gross amount not offset on the Balance Sheet, financial instruments | -11 | -31 | -16 |
Gross amount not offset on the Balance Sheet, cash collateral (received) or pledged | 0 | 0 | -6 |
Derivative assets, net amount | 69 | 55 | 159 |
Derivative liabilities, gross amount | ' | -11 | -18 |
Gross amount not offset on the Balance Sheet, financial instrument | ' | 11 | 18 |
Gross amount not offset on the Balance Sheet, cash collateral (received) or pledged | ' | 0 | 0 |
Derivative liabilities, net amount | ' | $0 | $0 |
Inventories_Detail
Inventories (Detail) (USD $) | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 |
In Millions, unless otherwise specified | |||
Inventory Disclosure [Abstract] | ' | ' | ' |
Finished goods | $1,235 | $1,196 | $1,174 |
Work in process | 283 | 247 | 248 |
Raw materials | 318 | 282 | 290 |
Total | $1,836 | $1,725 | $1,712 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets, Net (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
The changes in the carrying amount of goodwill | ' | ' | ' | ' | ' |
Balance as of | $10,593 | $10,329 | $10,329 | $9,934 | ' |
Goodwill as a result of acquisitions | 99 | ' | 279 | 414 | ' |
Goodwill, Purchase Accounting Adjustments | -2 | ' | -1 | 3 | ' |
Currency adjustments, net | 6 | ' | -14 | -22 | ' |
Balance as of | 10,696 | ' | 10,593 | 10,329 | 9,934 |
Balance of intangible assets, excluding goodwill | ' | ' | ' | ' | ' |
Finite-Lived And Indefinite-Lived Intangible Assets, Original Cost | 4,706 | ' | 4,584 | 4,771 | ' |
Accumulated amortization | -2,365 | ' | -2,298 | -2,098 | ' |
Carrying value | 2,225 | ' | 2,167 | ' | ' |
Aggregate carrying amount of intangible assets | 2,341 | ' | 2,286 | 2,673 | ' |
Amortization expense | 87 | 86 | 349 | 331 | 335 |
Estimated aggregate amortization expense | ' | ' | ' | ' | ' |
Remaining 2015 | 275 | ' | ' | ' | ' |
2015 | 331 | ' | 338 | ' | ' |
2016 | 309 | ' | 326 | ' | ' |
2017 | 293 | ' | 304 | ' | ' |
2018 | 249 | ' | 289 | ' | ' |
2019 | 204 | ' | 244 | ' | ' |
Thereafter | 564 | ' | 666 | ' | ' |
Carrying value | 2,225 | ' | 2,167 | ' | ' |
In Process Research and Development | ' | ' | ' | ' | ' |
Balance of intangible assets, excluding goodwill | ' | ' | ' | ' | ' |
Indefinite-lived intangible assets | 116 | ' | 119 | 363 | ' |
Purchased Technology and Patents | ' | ' | ' | ' | ' |
Balance of intangible assets, excluding goodwill | ' | ' | ' | ' | ' |
Original cost | 3,992 | ' | 3,857 | 3,896 | ' |
Accumulated amortization | -1,946 | ' | -1,878 | -1,702 | ' |
Carrying value | 2,046 | ' | 1,979 | 2,194 | ' |
Intangible assets, estimated useful life | ' | ' | '12 years 8 months 12 days | '12 years 6 months | ' |
Estimated aggregate amortization expense | ' | ' | ' | ' | ' |
Carrying value | 2,046 | ' | 1,979 | 2,194 | ' |
Trademarks and Tradenames | ' | ' | ' | ' | ' |
Balance of intangible assets, excluding goodwill | ' | ' | ' | ' | ' |
Original cost | 408 | ' | 408 | 408 | ' |
Accumulated amortization | -337 | ' | -332 | -320 | ' |
Carrying value | 71 | ' | 76 | 88 | ' |
Intangible assets, estimated useful life | ' | ' | '11 years 9 months 18 days | '11 years 9 months 18 days | ' |
Estimated aggregate amortization expense | ' | ' | ' | ' | ' |
Carrying value | 71 | ' | 76 | 88 | ' |
Other | ' | ' | ' | ' | ' |
Balance of intangible assets, excluding goodwill | ' | ' | ' | ' | ' |
Original cost | 190 | ' | 200 | 104 | ' |
Accumulated amortization | -82 | ' | -88 | -76 | ' |
Carrying value | 108 | ' | 112 | 28 | ' |
Intangible assets, estimated useful life | ' | ' | '8 years 8 months 12 days | '8 years 9 months 18 days | ' |
Estimated aggregate amortization expense | ' | ' | ' | ' | ' |
Carrying value | 108 | ' | 112 | 28 | ' |
Cardiac and Vascular Group | ' | ' | ' | ' | ' |
The changes in the carrying amount of goodwill | ' | ' | ' | ' | ' |
Balance as of | 2,881 | 2,624 | 2,624 | 2,636 | ' |
Goodwill as a result of acquisitions | 50 | ' | 279 | 0 | ' |
Goodwill, Purchase Accounting Adjustments | -2 | ' | -8 | 0 | ' |
Currency adjustments, net | 5 | ' | -14 | -12 | ' |
Balance as of | 2,934 | ' | 2,881 | 2,624 | ' |
Restorative Therapies Group | ' | ' | ' | ' | ' |
The changes in the carrying amount of goodwill | ' | ' | ' | ' | ' |
Balance as of | 6,368 | 6,361 | 6,361 | 5,954 | ' |
Goodwill as a result of acquisitions | 49 | ' | 0 | 414 | ' |
Goodwill, Purchase Accounting Adjustments | 0 | ' | 7 | 3 | ' |
Currency adjustments, net | 1 | ' | 0 | -10 | ' |
Balance as of | 6,418 | ' | 6,368 | 6,361 | ' |
Diabetes Group | ' | ' | ' | ' | ' |
The changes in the carrying amount of goodwill | ' | ' | ' | ' | ' |
Balance as of | 1,344 | 1,344 | 1,344 | 1,344 | ' |
Goodwill as a result of acquisitions | 0 | ' | 0 | 0 | ' |
Goodwill, Purchase Accounting Adjustments | 0 | ' | 0 | 0 | ' |
Currency adjustments, net | 0 | ' | 0 | 0 | ' |
Balance as of | $1,344 | ' | $1,344 | $1,344 | ' |
Warranty_Obligation_Detail
Warranty Obligation (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 |
Changes in Product Warranty Obligations | ' | ' | ' | ' |
Balance as of beginning of period | $32 | $35 | $35 | $31 |
Warranty claims provision | 6 | 11 | 25 | 25 |
Settlements made | -7 | -8 | -28 | -21 |
Balance as of end of peridod | $31 | $38 | $32 | $35 |
Interest_Expense_Net_Detail
Interest Expense, Net (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Interest Income and Interest Expense | ' | ' | ' | ' | ' |
Interest Income | ($92) | ($50) | ($271) | ($237) | ($200) |
Interest expense | 97 | 90 | 379 | 388 | 349 |
Interest expense, net | $5 | $40 | $108 | $151 | $149 |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Effective tax rate from continuing operations | 19.60% | 17.30% | 17.30% | 18.40% | 17.60% |
Gross unrecognized tax benefits | $1,234 | ' | $1,172 | $1,068 | $917 |
Accrued income tax interest and penalties | 157 | ' | 141 | 88 | 120 |
Unrecognized tax benefits that would impact effective tax rate | 1,138 | ' | 1,104 | 1,028 | 858 |
Income (Loss) from Continuing Operations before Income Taxes, by Jurisdiction | ' | ' | ' | ' | ' |
U.S. | ' | ' | 1,690 | 1,806 | 1,620 |
International | ' | ' | 2,015 | 2,445 | 2,525 |
Earnings before income taxes | 1,083 | 1,153 | 3,705 | 4,251 | 4,145 |
Current tax expense: | ' | ' | ' | ' | ' |
U.S. | ' | ' | 532 | 509 | 664 |
International | ' | ' | 248 | 219 | 231 |
Total current tax expense | ' | ' | 780 | 728 | 895 |
Deferred tax expense (benefit): | ' | ' | ' | ' | ' |
U.S. | ' | ' | -175 | 46 | -138 |
International | ' | ' | 35 | 10 | -27 |
Net deferred tax expense (benefit) | ' | ' | -140 | 56 | -165 |
Total provision for income taxes | 212 | 200 | 640 | 784 | 730 |
Valuation allowance | ' | ' | 397 | 313 | ' |
Deferred tax assets: | ' | ' | ' | ' | ' |
Net operating loss, capital loss, and credit carryforwards | ' | ' | 487 | 423 | ' |
Other accrued liabilities | ' | ' | 205 | 140 | ' |
Accrued compensation | ' | ' | 201 | 98 | ' |
Pension and post-retirement benefits | ' | ' | 194 | 239 | ' |
Stock-based compensation | ' | ' | 171 | 223 | ' |
Other | ' | ' | 142 | 200 | ' |
Inventory | ' | ' | 118 | 121 | ' |
Federal and state benefit on uncertain tax positions | ' | ' | 79 | 57 | ' |
Unrealized loss on available-for-sale securities and derivative financial instruments | ' | ' | 29 | 0 | ' |
Gross deferred tax assets | ' | ' | 1,626 | 1,501 | ' |
Valuation allowance | ' | ' | -397 | -313 | ' |
Total deferred tax assets | ' | ' | 1,229 | 1,188 | ' |
Deferred tax liabilities: | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | -652 | -712 | ' |
Basis impairment | ' | ' | -225 | -214 | ' |
Realized loss on derivative financial instruments | ' | ' | -110 | -110 | ' |
Other | ' | ' | -24 | -29 | ' |
Accumulated depreciation | ' | ' | -20 | -56 | ' |
Unrealized gain on available-for-sale securities and derivative financial instruments | ' | ' | 0 | -87 | ' |
Total deferred tax liabilities | ' | ' | -1,031 | -1,208 | ' |
Prepaid income taxes | ' | ' | 320 | 321 | ' |
Income tax receivables | ' | ' | 113 | 114 | ' |
Tax assets, net | ' | ' | 631 | 415 | ' |
Reported as (after valuation allowance and jurisdictional netting): | ' | ' | ' | ' | ' |
Tax assets | 599 | ' | 736 | 539 | ' |
Long-term tax assets | 199 | ' | 300 | 232 | ' |
Deferred tax liabilities | -19 | ' | -19 | -16 | ' |
Long-term deferred tax liabilities | -377 | ' | -386 | -340 | ' |
Tax assets, net | ' | ' | 631 | 415 | ' |
Effective Income Tax Rate Reconciliation | ' | ' | ' | ' | ' |
U.S. federal statutory tax rate | ' | ' | 35.00% | 35.00% | 35.00% |
Increase (decrease) in tax rate resulting from: | ' | ' | ' | ' | ' |
U.S. state taxes, net of federal tax benefit | ' | ' | 0.60% | 0.50% | 0.90% |
Research and development credit | ' | ' | -0.50% | -1.10% | -0.60% |
Domestic production activities | ' | ' | -0.40% | -0.30% | -0.50% |
International | ' | ' | -17.70% | -16.70% | -16.90% |
Puerto Rico Excise Tax | ' | ' | -1.60% | -1.30% | -1.40% |
Impact of restructuring charges, net, certain litigation charges, net, and acquisition-related items | ' | ' | 5.60% | 2.00% | 0.30% |
Reversal of excess tax accruals | ' | ' | -1.90% | 0.00% | -0.80% |
Valuation allowance release | ' | ' | 0.00% | -0.20% | -0.80% |
Other, net | ' | ' | -1.80% | 0.50% | 2.40% |
Effective tax rate | 19.60% | 17.30% | 17.30% | 18.40% | 17.60% |
Unrecognized Tax Benefits Reconciliation | ' | ' | ' | ' | ' |
Gross unrecognized tax benefits at beginning of fiscal year | 1,172 | 1,068 | 1,068 | 917 | 769 |
Gross increases: | ' | ' | ' | ' | ' |
Prior year tax positions | ' | ' | 64 | 12 | 47 |
Current year tax positions | ' | ' | 166 | 169 | 171 |
Gross decreases: | ' | ' | ' | ' | ' |
Prior year tax positions | ' | ' | -58 | -21 | -53 |
Settlements | ' | ' | -66 | -6 | -4 |
Statute of limitation lapses | ' | ' | -2 | -3 | -13 |
Gross unrecognized tax benefits at end of fiscal year | $1,234 | ' | $1,172 | $1,068 | $917 |
Earnings_Per_Share_Detail
Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, except Per Share data, unless otherwise specified | Jul. 25, 2014 | Apr. 25, 2014 | Jan. 24, 2014 | Oct. 25, 2013 | Jul. 26, 2013 | Apr. 26, 2013 | Jan. 25, 2013 | Oct. 26, 2012 | Jul. 27, 2012 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings | $871 | $448 | $762 | $902 | $953 | $969 | $988 | $646 | $864 | $3,065 | $3,467 | $3,617 |
Denominator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic weighted average shares outstanding (shares) | 992.6 | ' | ' | ' | 1,009.70 | ' | ' | ' | ' | 1,002.10 | 1,019.30 | 1,053.90 |
Effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock options (shares) | 7.5 | ' | ' | ' | 6.6 | ' | ' | ' | ' | ' | ' | ' |
Employee restricted stock units (shares) | 5 | ' | ' | ' | 4.8 | ' | ' | ' | ' | ' | ' | ' |
Other (shares) | 0.1 | ' | ' | ' | 0.1 | ' | ' | ' | ' | ' | ' | ' |
Diluted weighted average shares outstanding | 1,005.20 | ' | ' | ' | 1,021.20 | ' | ' | ' | ' | 1,013.60 | 1,027.50 | 1,059.90 |
Basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings (usd per share) | $0.88 | $0.45 | $0.76 | $0.90 | $0.94 | $0.96 | $0.98 | $0.63 | $0.84 | $3.06 | $3.40 | $3.43 |
Diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings (usd per share) | $0.87 | $0.44 | $0.75 | $0.89 | $0.93 | $0.95 | $0.97 | $0.63 | $0.83 | $3.02 | $3.37 | $3.41 |
Stock Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share (shares) | ' | ' | ' | ' | 9 | ' | ' | ' | ' | 5 | 38 | 51 |
StockBased_Compensation_Detail
Stock-Based Compensation (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Stock-based Compensation Expense by Component and Classification | ' | ' | ' | ' | ' |
Stock-based compensation expense | $34 | $31 | $145 | $152 | $161 |
Income tax benefits | -9 | -8 | -40 | -43 | -45 |
Total stock-based compensation expense, net of tax | 25 | 23 | 105 | 109 | 116 |
Cost of Products Sold | ' | ' | ' | ' | ' |
Stock-based Compensation Expense by Component and Classification | ' | ' | ' | ' | ' |
Stock-based compensation expense | 4 | 3 | 14 | 12 | 12 |
Research and Development Expense | ' | ' | ' | ' | ' |
Stock-based Compensation Expense by Component and Classification | ' | ' | ' | ' | ' |
Stock-based compensation expense | 6 | 6 | 27 | 31 | 29 |
Selling, General and Administrative Expense | ' | ' | ' | ' | ' |
Stock-based Compensation Expense by Component and Classification | ' | ' | ' | ' | ' |
Stock-based compensation expense | 24 | 22 | 104 | 109 | 118 |
Stock Options | ' | ' | ' | ' | ' |
Stock-based Compensation Expense by Component and Classification | ' | ' | ' | ' | ' |
Stock-based compensation expense | 6 | 8 | 34 | 44 | 60 |
Restricted Stock Awards | ' | ' | ' | ' | ' |
Stock-based Compensation Expense by Component and Classification | ' | ' | ' | ' | ' |
Stock-based compensation expense | 23 | 19 | ' | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' | ' | ' |
Stock-based Compensation Expense by Component and Classification | ' | ' | ' | ' | ' |
Stock-based compensation expense | $5 | $4 | $13 | $12 | $13 |
Retirement_Benefit_Plans_Net_P
Retirement Benefit Plans , Net Periodic Cost and AOCI (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
U.S. Pension Benefits | ' | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' | ' |
Service cost | $26 | $27 | $107 | $104 | $92 |
Interest cost | 26 | 24 | 97 | 94 | 87 |
Expected return on plan assets | -39 | -35 | -141 | -128 | -121 |
Amortization of prior service costs (credit) | ' | ' | 1 | -1 | -1 |
Amortization of net actuarial loss | 16 | 21 | 85 | 71 | 45 |
Net periodic benefit cost | 29 | 37 | 149 | 140 | 102 |
Amounts Recognized in AOCI | ' | ' | ' | ' | ' |
Net actuarial loss (gain) | ' | ' | -126 | ' | ' |
Amortization of prior service cost | ' | ' | -1 | ' | ' |
Amortization of net actuarial gain | ' | ' | -85 | ' | ' |
Effect of exchange rates | ' | ' | 0 | ' | ' |
Total recognized in accumulated other comprehensive loss | ' | ' | -212 | ' | ' |
Total recognized in net periodic pension cost and accumulated other comprehensive loss | ' | ' | -63 | ' | ' |
Estimated Amounts That Will be Amortized from AOCI in Next Fiscal Year | ' | ' | ' | ' | ' |
Amortization of net actuarial loss | ' | ' | 65 | ' | ' |
Total amounts that will be amortized from AOCI in next fiscal year | ' | ' | 65 | ' | ' |
Non-U.S. Pension Benefits | ' | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' | ' |
Service cost | 15 | 14 | 54 | 43 | 42 |
Interest cost | 8 | 7 | 29 | 27 | 29 |
Expected return on plan assets | -10 | -9 | -35 | -33 | -36 |
Amortization of prior service costs (credit) | ' | ' | 1 | 1 | 1 |
Amortization of net actuarial loss | 3 | 2 | 11 | 8 | 4 |
Net periodic benefit cost | 16 | 14 | 60 | 46 | 40 |
Amounts Recognized in AOCI | ' | ' | ' | ' | ' |
Net actuarial loss (gain) | ' | ' | 61 | ' | ' |
Amortization of prior service cost | ' | ' | -1 | ' | ' |
Amortization of net actuarial gain | ' | ' | -11 | ' | ' |
Effect of exchange rates | ' | ' | 14 | ' | ' |
Total recognized in accumulated other comprehensive loss | ' | ' | 63 | ' | ' |
Total recognized in net periodic pension cost and accumulated other comprehensive loss | ' | ' | 124 | ' | ' |
Estimated Amounts That Will be Amortized from AOCI in Next Fiscal Year | ' | ' | ' | ' | ' |
Amortization of net actuarial loss | ' | ' | 13 | ' | ' |
Total amounts that will be amortized from AOCI in next fiscal year | ' | ' | 13 | ' | ' |
Post-Retirement Benefits | ' | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' | ' |
Service cost | 5 | 5 | 19 | 19 | 19 |
Interest cost | 4 | 3 | 14 | 15 | 17 |
Expected return on plan assets | -6 | -5 | -19 | -17 | -16 |
Amortization of prior service costs (credit) | ' | ' | 0 | 0 | 0 |
Amortization of net actuarial loss | 0 | 0 | 1 | 3 | 3 |
Net periodic benefit cost | 3 | 3 | 15 | 20 | 23 |
Amounts Recognized in AOCI | ' | ' | ' | ' | ' |
Net actuarial loss (gain) | ' | ' | -3 | ' | ' |
Amortization of prior service cost | ' | ' | 0 | ' | ' |
Amortization of net actuarial gain | ' | ' | -1 | ' | ' |
Effect of exchange rates | ' | ' | 0 | ' | ' |
Total recognized in accumulated other comprehensive loss | ' | ' | -4 | ' | ' |
Total recognized in net periodic pension cost and accumulated other comprehensive loss | ' | ' | 11 | ' | ' |
Estimated Amounts That Will be Amortized from AOCI in Next Fiscal Year | ' | ' | ' | ' | ' |
Amortization of net actuarial loss | ' | ' | 0 | ' | ' |
Total amounts that will be amortized from AOCI in next fiscal year | ' | ' | $0 | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | |||
Accumulated other comprehensive loss, beginning of period | ($597) | ($492) | ($492) | ($473) | ($224) | |||
Other comprehensive (loss) income before reclassifications, before tax | 167 | -118 | -136 | ' | ' | |||
Tax benefit (expense) | -58 | 42 | 39 | ' | ' | |||
Other comprehensive (loss) income before reclassifications, net of tax | 109 | -76 | -97 | ' | ' | |||
Reclassifications, before tax | 1 | -10 | -15 | ' | ' | |||
Tax benefit (expense) | -1 | 2 | 7 | ' | ' | |||
Reclassifications, net of tax | 0 | -8 | -8 | ' | ' | |||
Other comprehensive (loss) income, net of tax | 109 | -84 | -105 | -19 | -249 | |||
Accumulated other comprehensive loss, end of period | -488 | -576 | -597 | -492 | -473 | |||
Unrealized Gain (Loss) on Available-for-Sale Securities | ' | ' | ' | ' | ' | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | |||
Accumulated other comprehensive loss, beginning of period | -6 | 97 | 97 | ' | ' | |||
Other comprehensive (loss) income before reclassifications, before tax | 107 | -131 | -89 | ' | ' | |||
Tax benefit (expense) | -39 | 48 | 32 | ' | ' | |||
Other comprehensive (loss) income before reclassifications, net of tax | 68 | -83 | -57 | ' | ' | |||
Reclassifications, before tax | -21 | -18 | -72 | ' | ' | |||
Tax benefit (expense) | 7 | 6 | 26 | ' | ' | |||
Reclassifications, net of tax | -14 | [1] | -12 | [1] | -46 | [2] | ' | ' |
Other comprehensive (loss) income, net of tax | 54 | -95 | -103 | ' | ' | |||
Accumulated other comprehensive loss, end of period | 48 | 2 | -6 | ' | ' | |||
Cumulative Translation Adjustments | ' | ' | ' | ' | ' | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | |||
Accumulated other comprehensive loss, beginning of period | 218 | [3] | 205 | [3] | 205 | [3] | ' | ' |
Other comprehensive (loss) income before reclassifications, before tax | 1 | [3] | -5 | [3] | 13 | [3] | ' | ' |
Tax benefit (expense) | 0 | [3] | 0 | [3] | 0 | [3] | ' | ' |
Other comprehensive (loss) income before reclassifications, net of tax | 1 | [3] | -5 | [3] | 13 | [3] | ' | ' |
Reclassifications, before tax | 0 | [3] | 0 | [3] | 0 | [3] | ' | ' |
Tax benefit (expense) | 0 | [3] | 0 | [3] | 0 | [3] | ' | ' |
Reclassifications, net of tax | 0 | [3] | 0 | [3] | 0 | [3] | ' | ' |
Other comprehensive (loss) income, net of tax | 1 | [3] | -5 | [3] | 13 | [3] | ' | ' |
Accumulated other comprehensive loss, end of period | 219 | [3] | 200 | [3] | 218 | [3] | ' | ' |
Net Change in Retirement Obligations | ' | ' | ' | ' | ' | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | |||
Accumulated other comprehensive loss, beginning of period | -765 | -852 | -852 | ' | ' | |||
Other comprehensive (loss) income before reclassifications, before tax | 4 | 0 | 60 | ' | ' | |||
Tax benefit (expense) | 0 | 0 | -37 | ' | ' | |||
Other comprehensive (loss) income before reclassifications, net of tax | 4 | 0 | 23 | ' | ' | |||
Reclassifications, before tax | 19 | 23 | 99 | ' | ' | |||
Tax benefit (expense) | -6 | -9 | -35 | ' | ' | |||
Reclassifications, net of tax | 13 | [4] | 14 | [4] | 64 | [5] | ' | ' |
Other comprehensive (loss) income, net of tax | 17 | 14 | 87 | ' | ' | |||
Accumulated other comprehensive loss, end of period | -748 | -838 | -765 | ' | ' | |||
Unrealized Gain (Loss) on Derivatives | ' | ' | ' | ' | ' | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | |||
Accumulated other comprehensive loss, beginning of period | -44 | 58 | 58 | ' | ' | |||
Other comprehensive (loss) income before reclassifications, before tax | 55 | 18 | -120 | ' | ' | |||
Tax benefit (expense) | -19 | -6 | 44 | ' | ' | |||
Other comprehensive (loss) income before reclassifications, net of tax | 36 | 12 | -76 | ' | ' | |||
Reclassifications, before tax | 3 | -15 | -42 | ' | ' | |||
Tax benefit (expense) | -2 | 5 | 16 | ' | ' | |||
Reclassifications, net of tax | 1 | [6] | -10 | [6] | -26 | [6] | ' | ' |
Other comprehensive (loss) income, net of tax | 37 | 2 | -102 | ' | ' | |||
Accumulated other comprehensive loss, end of period | ($7) | $60 | ($44) | ' | ' | |||
[1] | Represents net realized gains on sales of available-for-sale securities that were reclassified from AOCI to other expense, net (see Note 6). | |||||||
[2] | Represents net realized gains on sales of available-for-sale securities that were reclassified from AOCI to other expense, net (see Note 5). | |||||||
[3] | Taxes are not provided on CTA as substantially all translation adjustments relate to earnings that are intended to be indefinitely reinvested outside the U.S. | |||||||
[4] | Includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note 17). | |||||||
[5] | Includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note 14). | |||||||
[6] | Relates to foreign currency cash flow hedges that were reclassified from AOCI to other expense, net or cost of products sold and forward starting interest rate derivative instruments that were reclassified from AOCI to interest expense, net (see Note 9). |
Contingencies_Detail
Contingencies (Detail) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||
Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | 31-May-12 | Jan. 15, 2014 | Feb. 28, 2013 | Apr. 01, 2010 | Mar. 19, 2010 | Oct. 26, 2012 | Apr. 25, 2014 | Apr. 26, 2013 | 19-May-14 | Apr. 25, 2014 | Aug. 26, 2013 | Mar. 12, 2010 | Mar. 19, 2010 | Jul. 25, 2014 | Apr. 25, 2014 | Apr. 25, 2014 | Jul. 25, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | 31-May-14 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Shareholder Related Litigation Lawsuits | Litigation with Edwards Lifesciences Corporation | Litigation with Edwards Lifesciences Corporation | Litigation with Edwards Lifesciences Corporation | Litigation with Edwards Lifesciences Corporation | Litigation with Edwards Lifesciences Corporation | Litigation with Edwards Lifesciences Corporation | Litigation with Edwards Lifesciences Corporation | Litigation with Edwards Lifesciences Corporation | Litigation with Edwards Lifesciences Corporation | Litigation with Edwards Lifesciences Corporation | Litigation with Edwards Lifesciences Corporation | Existing Litigation, Edwards Life Sciences Inc | INFUSE Product Liability Litigation | INFUSE Product Liability Litigation | INFUSE Product Liability Litigation | INFUSE Product Liability Litigation | Other Litigation Matters | Other Litigation Matters | Other Litigation Matters | |
Lawsuits | USD ($) | USD ($) | USD ($) | Patent | USD ($) | USD ($) | USD ($) | Subsequent Event | Subsequent Event | Edwards Lifesciences, Inc. | Pending Litigation | Pending Litigation | PersonalInjuryCases | PersonalInjuryCases | USD ($) | Claim | USD ($) | USD ($) | Subsequent Event | ||||||
USD ($) | USD ($) | EUR (€) | Patent | Patent | Claim | Claim | Claim | Lawsuits | USD ($) | ||||||||||||||||
Lawsuits | Lawsuits | Lawsuits | |||||||||||||||||||||||
Loss Contingency, Information about Litigation Matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Claims filed, number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750 | 750 | 750 | ' | ' | ' |
Loss contingency, number of individual personal injury claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200 | 1,200 | ' | ' | ' | ' | ' |
Estimated number of unfiled claimants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,600 | 3,600 | 3,600 | ' | ' | ' |
Certain litigation charges, net | ' | ' | $770,000,000 | $245,000,000 | $90,000,000 | ' | ' | ' | ' | ' | $245,000,000 | $589,000,000 | $245,000,000 | ' | $589,000,000 | ' | ' | ' | ' | ' | $140,000,000 | ' | $3,000,000 | $10,000,000 | ' |
Loss Contingency, New Claims Filed, Number | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Patents allegedly infringed, number | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Patents found not infringed, number | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Damages awarded to plaintiff | ' | ' | ' | ' | ' | ' | 394,000,000 | ' | 74,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for Legal Settlements | 761,000,000 | 0 | 15,000,000 | 175,000,000 | 241,000,000 | ' | ' | 84,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, bond paid by Edwards to enforce injunction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 |
Minimum annual payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreement term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Name of defendant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Medtronic CoreValve LLC | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Name of plaintiff | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Edwards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment_and_Geographic_Informa2
Segment and Geographic Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Jul. 25, 2014 | Apr. 25, 2014 | Jan. 24, 2014 | Oct. 25, 2013 | Jul. 26, 2013 | Apr. 26, 2013 | Jan. 25, 2013 | Oct. 26, 2012 | Jul. 27, 2012 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | |||
Segment | Segment | ||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of Reportable Segments | 3 | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | |||
Net Assets by Reportable Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of Operating Segments | 3 | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | |||
Short-term borrowings | ($2,477) | ($1,613) | ' | ' | ' | ($910) | ' | ' | ' | ($1,613) | ($910) | ' | |||
Long-term debt | -10,323 | -10,315 | ' | ' | ' | -9,741 | ' | ' | ' | -10,315 | -9,741 | ' | |||
Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales | 4,273 | 4,566 | 4,163 | 4,194 | 4,083 | 4,459 | 4,027 | 4,095 | 4,008 | 17,005 | 16,590 | 16,184 | |||
Net sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,005 | 16,590 | 16,184 | |||
Property, plant, and equipment, net | 2,376 | 2,392 | ' | ' | ' | 2,490 | ' | ' | ' | 2,392 | 2,490 | 2,473 | |||
Earnings before Income Taxes by Reportable Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reportable segments' earnings before income taxes | 1,242 | ' | ' | ' | 1,252 | ' | ' | ' | ' | 5,260 | 5,145 | 4,875 | |||
Special charges | 0 | ' | ' | ' | -40 | ' | ' | ' | ' | -40 | 0 | 0 | |||
Restructuring charges, net | -30 | ' | ' | ' | -18 | ' | ' | ' | ' | -78 | -172 | -87 | |||
Acquisition-related items | -41 | ' | ' | ' | 96 | ' | ' | ' | ' | -117 | 49 | -12 | |||
Interest expense, net | -5 | ' | ' | ' | -40 | ' | ' | ' | ' | -108 | -151 | -149 | |||
Corporate | -83 | ' | ' | ' | -97 | ' | ' | ' | ' | -432 | -365 | -392 | |||
Earnings before income taxes | 1,083 | ' | ' | ' | 1,153 | ' | ' | ' | ' | 3,705 | 4,251 | 4,145 | |||
Restructuring Charges, Net of Reversals Including Cost of Product Sold Impact | ' | ' | ' | ' | ' | ' | ' | ' | ' | -88 | [1] | -182 | [1] | -87 | [1] |
Certain litigation charges, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | -770 | -245 | -90 | |||
Assets, Net | ' | 19,443 | ' | ' | ' | 18,671 | ' | ' | ' | 19,443 | 18,671 | ' | |||
Corporate, Non-Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Earnings before Income Taxes by Reportable Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Assets, Net | ' | 13,370 | ' | ' | ' | 10,466 | ' | ' | ' | 13,370 | 10,466 | ' | |||
Cardiac and Vascular Group | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Earnings before Income Taxes by Reportable Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reportable segments' earnings before income taxes | 712 | ' | ' | ' | 756 | ' | ' | ' | ' | ' | ' | ' | |||
Restorative Therapies Group | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Earnings before Income Taxes by Reportable Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reportable segments' earnings before income taxes | 410 | ' | ' | ' | 421 | ' | ' | ' | ' | ' | ' | ' | |||
Diabetes Group | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Earnings before Income Taxes by Reportable Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reportable segments' earnings before income taxes | 120 | ' | ' | ' | 75 | ' | ' | ' | ' | ' | ' | ' | |||
Customer Concentration Risk | Sales Revenue, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Earnings before Income Taxes by Reportable Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Concentration Risk, Customer | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales | 2,333 | ' | ' | ' | 2,206 | ' | ' | ' | ' | ' | ' | ' | |||
Net sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,209 | 9,059 | 8,828 | |||
Property, plant, and equipment, net | ' | 1,762 | ' | ' | ' | 1,849 | ' | ' | ' | 1,762 | 1,849 | 1,894 | |||
Europe and Canada | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales | 1,081 | ' | ' | ' | 1,046 | ' | ' | ' | ' | ' | ' | ' | |||
Net sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,380 | 4,199 | 4,313 | |||
Property, plant, and equipment, net | ' | 388 | ' | ' | ' | 391 | ' | ' | ' | 388 | 391 | 389 | |||
Asia Pacific | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales | 649 | ' | ' | ' | 656 | ' | ' | ' | ' | ' | ' | ' | |||
Net sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600 | 2,604 | 2,399 | |||
Property, plant, and equipment, net | ' | 195 | ' | ' | ' | 206 | ' | ' | ' | 195 | 206 | 154 | |||
Other Foreign | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales | 210 | ' | ' | ' | 175 | ' | ' | ' | ' | ' | ' | ' | |||
Net sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | 816 | 728 | 644 | |||
Property, plant, and equipment, net | ' | 47 | ' | ' | ' | 44 | ' | ' | ' | 47 | 44 | 36 | |||
Cardiac and Vascular Group | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Assets by Reportable Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of Businesses | 3 | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | |||
Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales | 2,254 | ' | ' | ' | 2,160 | ' | ' | ' | ' | 8,847 | 8,695 | 8,482 | |||
Earnings before Income Taxes by Reportable Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reportable segments' earnings before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,982 | 2,935 | 2,772 | |||
Assets, Net | ' | 6,578 | ' | ' | ' | 6,941 | ' | ' | ' | 6,578 | 6,941 | ' | |||
Restorative Therapies Group | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Assets by Reportable Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of Businesses | 3 | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | |||
Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales | 1,603 | ' | ' | ' | 1,554 | ' | ' | ' | ' | 6,501 | 6,369 | 6,221 | |||
Earnings before Income Taxes by Reportable Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reportable segments' earnings before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,821 | 1,778 | 1,707 | |||
Assets, Net | ' | 9,604 | ' | ' | ' | 10,058 | ' | ' | ' | 9,604 | 10,058 | ' | |||
Diabetes Group | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales | 416 | ' | ' | ' | 369 | ' | ' | ' | ' | 1,657 | 1,526 | 1,481 | |||
Earnings before Income Taxes by Reportable Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reportable segments' earnings before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 457 | 432 | 396 | |||
Assets, Net | ' | 1,819 | ' | ' | ' | 1,857 | ' | ' | ' | 1,819 | 1,857 | ' | |||
Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Earnings before Income Taxes by Reportable Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Assets, Net | ' | $18,001 | ' | ' | ' | $18,856 | ' | ' | ' | $18,001 | $18,856 | ' | |||
[1] | For fiscal years 2014 and 2013, restructuring charges, net within this table include the impact of amounts recorded within cost of products sold in the consolidated statements of earnings related to the fiscal year 2014 initiative and fiscal year 2013 initiative, respectively. |
Subsequent_Events_Detail
Subsequent Events (Detail) (USD $) | Jun. 13, 2014 | Jul. 25, 2014 | Jun. 15, 2014 | Jun. 13, 2014 | Jun. 15, 2014 | Oct. 03, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Nov. 07, 2014 | Jun. 15, 2014 | Jul. 25, 2014 | Nov. 07, 2014 | Jul. 25, 2014 | Nov. 07, 2014 | Jun. 15, 2014 | Jul. 25, 2014 | Nov. 07, 2014 | Jul. 25, 2014 | Nov. 07, 2014 | Jul. 25, 2014 |
Covidien PLC | Covidien PLC | Subsequent Event | Subsequent Event | Subsequent Event | Line Of Credit Facility 2017 | Line Of Credit Facility 2017 | Amended and Restated Revolving Credit Facility | Covidien PLC | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | IrSub | IrSub | IrSub | ||
Covidien PLC | Covidien PLC | Credit Facility | Credit Facility | Subsequent Event | Subsequent Event | Term Loan Credit Agreement [Member] | Term Loan Credit Agreement [Member] | Bridge Loan | Bridge Loan | Bridge Loan | Bridge Loan | Bridge Loan | Bridge Loan | Bridge Loan | Bridge Loan | |||||
Credit Facility | New Medtronic | Subsequent Event | Subsequent Event | Senior Unsecured Bridge Credit Agreement | Senior Unsecured Bridge Credit Agreement | Senior Unsecured Bridge Credit Agreement | Senior Unsecured Bridge Credit Agreement | Senior Unsecured Bridge Credit Agreement | Senior Unsecured Cash Bridge Credit Agreement | Senior Unsecured Cash Bridge Credit Agreement | Senior Unsecured Cash Bridge Credit Agreement | |||||||||
Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | |||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum aggregate principal amount to be borrowed | ' | ' | ' | ' | ' | ' | $2,250,000,000 | $2,250,000,000 | $3,500,000,000 | ' | ' | $5,000,000,000 | ' | ' | $2,800,000,000 | ' | $11,300,000,000 | ' | ' | ' |
Debt term | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | '3 years | ' | '364 days | ' | '364 days | '364 days | ' | '60 days | ' | '60 days |
Terminated loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000,000 | ' | ' | ' | ' | 13,500,000,000 | ' |
Cash required to finance the cash component of transaction | ' | 13,200,000,000 | ' | ' | ' | 16,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash issued per share | ' | ' | ' | ' | $35.19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued per share | ' | ' | ' | ' | 0.956 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total consideration | ' | ' | ' | ' | 42,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share price | $60.70 | ' | ' | $60.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Termination fee | ' | ' | 850,000,000 | ' | 850,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional capital required | ' | ' | ' | ' | $13,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Per Share data, unless otherwise specified | Jul. 25, 2014 | Apr. 25, 2014 | Jan. 24, 2014 | Oct. 25, 2013 | Jul. 26, 2013 | Apr. 26, 2013 | Jan. 25, 2013 | Oct. 26, 2012 | Jul. 27, 2012 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Apr. 29, 2011 |
Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant, and equipment, gross | $6,541 | $6,439 | ' | ' | ' | $6,152 | ' | ' | ' | $6,439 | $6,152 | ' | ' |
Less: Accumulated depreciation | -4,165 | -4,047 | ' | ' | ' | -3,662 | ' | ' | ' | -4,047 | -3,662 | ' | ' |
Property, plant, and equipment, net | 2,376 | 2,392 | ' | ' | ' | 2,490 | ' | ' | ' | 2,392 | 2,490 | 2,473 | ' |
Depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 501 | 488 | 498 | ' |
Accrued Certain Litigation Charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Certain loss contingency accruals | ' | 917 | ' | ' | ' | 161 | ' | ' | ' | 917 | 161 | ' | ' |
Shipping and handling costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 194 | 182 | 167 | ' |
AOCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized Gain/(Loss) on Investments | ' | ' | ' | ' | ' | 97 | ' | ' | ' | ' | 97 | 130 | 196 |
Cumulative Translation Adjustments | ' | ' | ' | ' | ' | 205 | ' | ' | ' | ' | 205 | 306 | 443 |
Net Change in Retirement Obligations | ' | ' | ' | ' | ' | -852 | ' | ' | ' | ' | -852 | -834 | -607 |
Unrealized Gain/(Loss) on Derivatives | ' | ' | ' | ' | ' | 58 | ' | ' | ' | ' | 58 | -75 | -256 |
Accumulated Other Comprehensive Loss | -488 | -597 | ' | ' | -576 | -492 | ' | ' | ' | -597 | -492 | -473 | -224 |
OCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized Gain/(Loss) on Investments | 54 | ' | ' | ' | -95 | ' | ' | ' | ' | -103 | -33 | -66 | ' |
Cumulative Translation Adjustments | 1 | ' | ' | ' | -5 | ' | ' | ' | ' | 13 | -21 | -137 | ' |
Net Change in Retirement Obligations | 17 | ' | ' | ' | 14 | ' | ' | ' | ' | 87 | -18 | -227 | ' |
Unrealized Gain/(Loss) on Derivatives | 37 | ' | ' | ' | 2 | ' | ' | ' | ' | -102 | 53 | 181 | ' |
Other comprehensive income (loss) | 109 | ' | ' | ' | -84 | ' | ' | ' | ' | -105 | -19 | -249 | ' |
Correction of classification | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -80 | ' | ' |
Correction of classification | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80 | ' | ' |
Earnings Per Share Reconciliation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,065 | 3,467 | 3,415 | ' |
Earnings from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 202 | ' |
Net earnings | 871 | 448 | 762 | 902 | 953 | 969 | 988 | 646 | 864 | 3,065 | 3,467 | 3,617 | ' |
Basic weighted average shares outstanding | 992.6 | ' | ' | ' | 1,009.70 | ' | ' | ' | ' | 1,002.10 | 1,019.30 | 1,053.90 | ' |
Effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.1 | 2.8 | 0.9 | ' |
Employee restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.3 | 5.3 | 4.9 | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | 0.1 | 0.2 | ' |
Diluted weighted average shares outstanding | 1,005.20 | ' | ' | ' | 1,021.20 | ' | ' | ' | ' | 1,013.60 | 1,027.50 | 1,059.90 | ' |
Basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings from continuing operations (per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.06 | $3.40 | $3.24 | ' |
Earnings from discontinued operations (per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0.19 | ' |
Net earnings (per share) | $0.88 | $0.45 | $0.76 | $0.90 | $0.94 | $0.96 | $0.98 | $0.63 | $0.84 | $3.06 | $3.40 | $3.43 | ' |
Diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings from continuing operations (per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.02 | $3.37 | $3.22 | ' |
Earnings from discontinued operations (per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0.19 | ' |
Net earnings (per share) | $0.87 | $0.44 | $0.75 | $0.89 | $0.93 | $0.95 | $0.97 | $0.63 | $0.83 | $3.02 | $3.37 | $3.41 | ' |
Senior convertible notes | 2,477 | 1,613 | ' | ' | ' | 910 | ' | ' | ' | 1,613 | 910 | ' | ' |
Land and land improvements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant, and equipment, gross | ' | 152 | ' | ' | ' | 151 | ' | ' | ' | 152 | 151 | ' | ' |
Buildings and leasehold improvements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant, and equipment, gross | ' | 1,565 | ' | ' | ' | 1,532 | ' | ' | ' | 1,565 | 1,532 | ' | ' |
Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant, and equipment, gross | ' | 4,409 | ' | ' | ' | 4,110 | ' | ' | ' | 4,409 | 4,110 | ' | ' |
Construction in progress | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant, and equipment, gross | ' | $313 | ' | ' | ' | $359 | ' | ' | ' | $313 | $359 | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Minimum | Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant, and equipment, estimate useful life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' | ' | ' |
Maximum | Land and land improvements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant, and equipment, estimate useful life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' | ' | ' |
Maximum | Buildings and leasehold improvements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant, and equipment, estimate useful life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | '40 years | ' | ' | ' |
Maximum | Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant, and equipment, estimate useful life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' |
Stock Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares excluded from computation of earnings per share | ' | ' | ' | ' | 9 | ' | ' | ' | ' | 5 | 38 | 51 | ' |
Financing_Arrangements_Longter
Financing Arrangements , Long-term Debt Maturities (Detail) (USD $) | Apr. 25, 2014 |
In Millions, unless otherwise specified | |
Long-term Debt, Fiscal Year Maturity | ' |
2015 | $1,601 |
2016 | 1,112 |
2017 | 531 |
2018 | 1,018 |
2019 | 419 |
Thereafter | 7,184 |
Total debt | 11,865 |
Less: Current portion of debt | 1,601 |
Long-term portion of debt | $10,264 |
Shareholders_Equity_Detail
Shareholders' Equity (Detail) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Apr. 25, 2014 | Apr. 26, 2013 | Jun. 30, 2013 | Jun. 30, 2011 |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' |
Number of common stock authorized to be repurchased (in shares) | ' | ' | 80 | 75 |
Shares repurchased (in shares) | 47.8 | 31.2 | ' | ' |
Average repurchase price (per share) | $53.37 | $39.97 | ' | ' |
June 2013 Share Repurchase Program | ' | ' | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' |
Shares repurchased (in shares) | 20.6 | ' | ' | ' |
Shares available for future repurchases (in shares) | 59.4 | ' | ' | ' |
Stock_Purchase_and_Award_Plans2
Stock Purchase and Award Plans , ESPP, Valuation Assumptions and Compensation Expense (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | |||
Fair Value Assumptions Used in Black-Scholes Model | ' | ' | ' | ' | ' | |||
Weighted average fair value of options granted (per share) | ' | ' | $12 | $7.42 | $6.88 | |||
Expected life (years) | ' | ' | '6 years 4 months 24 days | [1] | '6 years 6 months | [1] | '6 years 4 months 24 days | [1] |
Risk-free interest rate | ' | ' | 1.88% | [2] | 0.94% | [2] | 1.82% | [2] |
Volatility | ' | ' | 25.20% | [3] | 26.22% | [3] | 25.97% | [3] |
Dividend yield | ' | ' | 2.02% | [4] | 2.64% | [4] | 2.78% | [4] |
Stock-based Compensation Expense by Plan | ' | ' | ' | ' | ' | |||
Stock-based compensation expense | $34 | $31 | $145 | $152 | $161 | |||
Income tax benefits | -9 | -8 | -40 | -43 | -45 | |||
Total stock-based compensation expense, net of tax | 25 | 23 | 105 | 109 | 116 | |||
Cost of Products Sold | ' | ' | ' | ' | ' | |||
Stock-based Compensation Expense by Plan | ' | ' | ' | ' | ' | |||
Stock-based compensation expense | 4 | 3 | 14 | 12 | 12 | |||
Research and Development Expense | ' | ' | ' | ' | ' | |||
Stock-based Compensation Expense by Plan | ' | ' | ' | ' | ' | |||
Stock-based compensation expense | 6 | 6 | 27 | 31 | 29 | |||
Selling, General and Administrative Expense | ' | ' | ' | ' | ' | |||
Stock-based Compensation Expense by Plan | ' | ' | ' | ' | ' | |||
Stock-based compensation expense | 24 | 22 | 104 | 109 | 118 | |||
Physio-Control Divestiture-related Costs | ' | ' | ' | ' | ' | |||
Stock-based Compensation Expense by Plan | ' | ' | ' | ' | ' | |||
Stock-based compensation expense | ' | ' | 0 | 0 | 2 | |||
Stock Options | ' | ' | ' | ' | ' | |||
Share-based Payments | ' | ' | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | ' | ' | '10 years | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '4 years | ' | ' | |||
Stock-based Compensation Expense by Plan | ' | ' | ' | ' | ' | |||
Stock-based compensation expense | 6 | 8 | 34 | 44 | 60 | |||
Restricted Stock Awards | ' | ' | ' | ' | ' | |||
Share-based Payments | ' | ' | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '4 years | ' | ' | |||
Stock-based Compensation Expense by Plan | ' | ' | ' | ' | ' | |||
Stock-based compensation expense | ' | ' | 98 | 96 | 86 | |||
Performance-Based Restricted Stock Award | ' | ' | ' | ' | ' | |||
Share-based Payments | ' | ' | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '3 years | ' | ' | |||
Employee Stock Purchase Plan | ' | ' | ' | ' | ' | |||
Employees Stock Purchase Plan | ' | ' | ' | ' | ' | |||
Maximum employee contribution rate | ' | ' | 10.00% | ' | ' | |||
Purchase price of common stock as a percentage of its fair market value | ' | ' | 85.00% | ' | ' | |||
Shares purchased by employees (in shares) | ' | ' | 2 | ' | ' | |||
Average purchase price | ' | ' | $47.32 | ' | ' | |||
Amount withheld to purchase common stock | ' | ' | 6 | ' | ' | |||
Shares available for future purchase (in shares) | ' | ' | 6 | ' | ' | |||
The discount rate from market value on purchase date | ' | ' | 15.00% | ' | ' | |||
Stock-based Compensation Expense by Plan | ' | ' | ' | ' | ' | |||
Stock-based compensation expense | 5 | 4 | 13 | 12 | 13 | |||
Physio-Control Award Acceleration | ' | ' | ' | ' | ' | |||
Stock-based Compensation Expense by Plan | ' | ' | ' | ' | ' | |||
Stock-based compensation expense | ' | ' | $0 | $0 | $2 | |||
2013 Plan | ' | ' | ' | ' | ' | |||
Share-based Payments | ' | ' | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | 70 | ' | ' | |||
[1] | Expected life: The Company analyzes historical employee stock option exercise and termination data to estimate the expected life assumption. The Company calculates the expected life assumption using the midpoint scenario, which combines historical exercise data with hypothetical exercise data, as the Company believes this data currently represents the best estimate of the expected life of a new employee option. The Company also stratifies its employee population into two groups based upon distinctive exercise behavior patterns. | |||||||
[2] | Risk-free interest rate: The rate is based on the grant date yield of a zero-coupon U.S. Treasury bond whose maturity period equals the expected term of the option. | |||||||
[3] | Volatility: Expected volatility is based on a blend of historical volatility and an implied volatility of the Company's common stock. Implied volatility is based on market traded options of the Company's common stock. | |||||||
[4] | Dividend yield: The dividend yield rate is calculated by dividing the Company's annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date. |
Stock_Purchase_and_Award_Plans3
Stock Purchase and Award Plans , Stock Options Activity (Detail) (Stock Options, USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Stock Options | ' | ' | ' |
Stock Options Activities (in shares) | ' | ' | ' |
Beginning balance | 62,020 | 74,590 | 84,652 |
Granted | 2,983 | 4,437 | 4,634 |
Exercised | -27,527 | -6,096 | -1,218 |
Canceled | -1,899 | -10,911 | -13,478 |
Outstanding at year-end | 35,577 | 62,020 | 74,590 |
Exercisable at year-end | 26,997 | 50,908 | 60,833 |
Stock Options Activities (per share) | ' | ' | ' |
Beginning balance | $44.98 | $44.80 | $45.23 |
Granted | $55.36 | $39.54 | $34.93 |
Exercised | $46.26 | $37.73 | $34.95 |
Canceled | $46.44 | $45.57 | $44.98 |
Outstanding at year-end | $44.78 | $44.98 | $44.80 |
Exercisable at year-end | $45.22 | $46.65 | $46.73 |
Weighted average remaining contractual life for options outstanding | '4 years 6 months 11 days | ' | ' |
Weighted average remaining contractual life for options exercisable | '3 years 4 months 20 days | ' | ' |
Total intrinsic value of options exercised | $249 | $39 | $5 |
Intrinsic value of in-the-money options outstanding | 477 | ' | ' |
Intrinsic value of in-the-money options exercisable | 351 | ' | ' |
Cash received from the exercise of stock options | 1,273 | ' | ' |
Tax benefit from stock options exercised | 78 | ' | ' |
Unrecognized compensation expense related to outstanding stock options | $40 | ' | ' |
Weighted average period over which unrecognized compensation is expected to be recognized | '2 years 6 months | ' | ' |
Stock_Purchase_and_Award_Plans4
Stock Purchase and Award Plans , Restricted Stock Award Activity (Detail) (Restricted Stock Awards, USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Restricted Stock Awards | ' | ' | ' |
Restricted Stock Award Activity (in shares) | ' | ' | ' |
Nonvested, beginning balance | 10,058 | 9,980 | 9,207 |
Granted | 2,519 | 3,135 | 3,785 |
Vested | -2,210 | -2,445 | -2,194 |
Forfeited | -809 | -612 | -818 |
Nonvested at year-end | 9,558 | 10,058 | 9,980 |
Restricted Stock Award Activity (per share) | ' | ' | ' |
Nonvested, beginning balance | $38.97 | $37.80 | $40.42 |
Granted | $55.62 | $39.53 | $35.60 |
Vested | $35.76 | $35.58 | $44.74 |
Forfeited | $39.41 | $36.34 | $38.46 |
Nonvested at year-end | $44.06 | $38.97 | $37.80 |
Unrecognized compensation expense related to restricted stock awards | $170 | ' | ' |
Weighted average period over which unrecognized compensation is expected to be recognized | '3 years 4 months 24 days | ' | ' |
Income_Taxes_Other_Disclosures
Income Taxes , Other Disclosures (Detail) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Jul. 25, 2014 |
Other Income Tax | ' | ' | ' | ' |
Tax benefit associated with the reversal of excess tax accruals | $71 | ' | ' | ' |
Tax benefit related to the settlement of certain issues reached with the U.S. Internal Revenue Services | 63 | ' | ' | ' |
Tax benefit associated with the release of a valuation allowance | ' | ' | 33 | ' |
Undistributed earnings from non-U.S. subsidiaries | 20,529 | 18,123 | 16,033 | ' |
Unrecognized tax benefits that would impact effective tax rate | 1,104 | 1,028 | 858 | 1,138 |
Accrued income tax penalties and interest | 141 | 88 | 120 | 157 |
Interest expense | $36 | $33 | $32 | ' |
Puerto Rico, Switzerland and Singapore | ' | ' | ' | ' |
Other Income Tax | ' | ' | ' | ' |
Impact on diluted earnings per share | $0.42 | $0.42 | $0.43 | ' |
Retirement_Benefit_Plans_Other
Retirement Benefit Plans , Other Disclosures (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Apr. 30, 2010 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Apr. 25, 2014 | Apr. 26, 2013 | 1-May-05 | Apr. 25, 2014 | Apr. 25, 2014 | Apr. 26, 2013 |
PIA | PIA | PIA | U.S. Pension Benefits | U.S. Pension Benefits | U.S. Pension Benefits | U.S. Pension Benefits | Post-Retirement Benefits | Post-Retirement Benefits | |||||
plan | Minimum | ||||||||||||
Retirement Benefit Plans Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of retirement benefit plans | $419 | $419 | $319 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Underfunded status of the plan | -488 | -584 | ' | ' | ' | ' | ' | -286 | -437 | ' | ' | -60 | -69 |
Non-cash charge due to PPACA and Reconciliation Act | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Benefit Plan, Funded Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' |
Plan funded percentage description | 'in excess of 80 percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected decline in healthcare cost trend rates of 5 year period | 'The trend rates are expected to decline to 5.0 percent over a five-year period. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decline in ultimate health care cost trend rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' |
Period of ultimate trend rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' |
Defined Contribution Savings Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expense under defined contribution plans | $145 | $163 | $106 | ' | $50 | $50 | $48 | ' | ' | ' | ' | ' | ' |
Number of new plans created | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' |
Treasury bond rate of guaranteed rate of return | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retirement_Benefit_Plans_Chang
Retirement Benefit Plans , Change in Benefit Obligation and Funded Status (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jul. 25, 2014 | Jul. 26, 2013 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Funded status at end of year: | ' | ' | ' | ' | ' |
Underfunded status of the plan | ' | ' | ($488) | ($584) | ' |
Amounts recognized on the consolidated balance sheet consist of: | ' | ' | ' | ' | ' |
Non-current liabilities | -680 | ' | -662 | -752 | ' |
Plans with accumulated benefit obligations in excess of plan assets | ' | ' | ' | ' | ' |
Accumulated benefit obligation | ' | ' | 2,426 | 2,003 | ' |
Projected benefit obligation | ' | ' | 2,703 | 2,243 | ' |
Plan asset at fair value | ' | ' | 2,268 | 1,740 | ' |
Plans with projected benefit obligations in excess of plan assets | ' | ' | ' | ' | ' |
Projected benefit obligation | ' | ' | 2,864 | 2,637 | ' |
Plan assets at fair value | ' | ' | 2,419 | 2,104 | ' |
U.S. Pension Benefits | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' | ' | ' |
Accumulated benefit obligation at end of year | ' | ' | 1,996 | 1,924 | ' |
Change in projected benefit obligation: | ' | ' | ' | ' | ' |
Projected benefit obligation at beginning of year | 2,203 | 2,154 | 2,154 | 1,877 | ' |
Service cost | 26 | 27 | 107 | 104 | 92 |
Interest cost | 26 | 24 | 97 | 94 | 87 |
Employee contributions | ' | ' | 0 | 0 | ' |
Plan amendments | ' | ' | 0 | 0 | ' |
Plan curtailments | ' | ' | 0 | 0 | ' |
Actuarial loss (gain) | ' | ' | -104 | 151 | ' |
Benefits paid | ' | ' | -51 | -72 | ' |
Medicare Part D reimbursements | ' | ' | 0 | 0 | ' |
Foreign currency exchange rate changes | ' | ' | 0 | 0 | ' |
Projected benefit obligation at end of year | ' | ' | 2,203 | 2,154 | 1,877 |
Change in plan assets: | ' | ' | ' | ' | ' |
Fair value of plan assets at beginning of year | 1,917 | 1,717 | 1,717 | 1,470 | ' |
Actual return on plan assets | ' | ' | 163 | 129 | ' |
Employer contributions | ' | ' | 88 | 190 | ' |
Employee contributions | ' | ' | 0 | 0 | ' |
Benefits paid | ' | ' | -51 | -72 | ' |
Foreign currency exchange rate changes | ' | ' | 0 | 0 | ' |
Fair value of plan assets at end of year | ' | ' | 1,917 | 1,717 | 1,470 |
Funded status at end of year: | ' | ' | ' | ' | ' |
Fair value of plan assets | ' | ' | 1,917 | 1,717 | 1,470 |
Benefit obligations | ' | ' | 2,203 | 2,154 | 1,877 |
Underfunded status of the plan | ' | ' | -286 | -437 | ' |
Recognized liability | ' | ' | -286 | -437 | ' |
Amounts recognized on the consolidated balance sheet consist of: | ' | ' | ' | ' | ' |
Non-current assets | ' | ' | 0 | 0 | ' |
Current liabilities | ' | ' | -10 | -9 | ' |
Non-current liabilities | ' | ' | -276 | -428 | ' |
Recognized liability | ' | ' | -286 | -437 | ' |
Amounts recognized in accumulated other comprehensive (loss)/income: | ' | ' | ' | ' | ' |
Prior service (benefit) cost | ' | ' | 4 | 5 | ' |
Net actuarial loss | ' | ' | 837 | 1,048 | ' |
Ending balance | ' | ' | 841 | 1,053 | ' |
Non-U.S. Pension Benefits | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' | ' | ' |
Accumulated benefit obligation at end of year | ' | ' | 871 | 689 | ' |
Change in projected benefit obligation: | ' | ' | ' | ' | ' |
Projected benefit obligation at beginning of year | 1,031 | 811 | 811 | 717 | ' |
Service cost | 15 | 14 | 54 | 43 | 42 |
Interest cost | 8 | 7 | 29 | 27 | 29 |
Employee contributions | ' | ' | 16 | 15 | ' |
Plan amendments | ' | ' | 0 | -8 | ' |
Plan curtailments | ' | ' | -2 | ' | ' |
Actuarial loss (gain) | ' | ' | 88 | 65 | ' |
Benefits paid | ' | ' | -27 | -25 | ' |
Medicare Part D reimbursements | ' | ' | 0 | 0 | ' |
Foreign currency exchange rate changes | ' | ' | 62 | -23 | ' |
Projected benefit obligation at end of year | ' | ' | 1,031 | 811 | 717 |
Change in plan assets: | ' | ' | ' | ' | ' |
Fair value of plan assets at beginning of year | 889 | 733 | 733 | 638 | ' |
Actual return on plan assets | ' | ' | 61 | 69 | ' |
Employer contributions | ' | ' | 48 | 49 | ' |
Employee contributions | ' | ' | 16 | 15 | ' |
Benefits paid | ' | ' | -27 | -25 | ' |
Foreign currency exchange rate changes | ' | ' | 58 | -13 | ' |
Fair value of plan assets at end of year | ' | ' | 889 | 733 | 638 |
Funded status at end of year: | ' | ' | ' | ' | ' |
Fair value of plan assets | ' | ' | 889 | 733 | 638 |
Benefit obligations | ' | ' | 1,031 | 811 | 717 |
Underfunded status of the plan | ' | ' | -142 | -78 | ' |
Recognized liability | ' | ' | -142 | -78 | ' |
Amounts recognized on the consolidated balance sheet consist of: | ' | ' | ' | ' | ' |
Non-current assets | ' | ' | 17 | 19 | ' |
Current liabilities | ' | ' | -4 | -4 | ' |
Non-current liabilities | ' | ' | -155 | -93 | ' |
Recognized liability | ' | ' | -142 | -78 | ' |
Amounts recognized in accumulated other comprehensive (loss)/income: | ' | ' | ' | ' | ' |
Prior service (benefit) cost | ' | ' | -2 | -1 | ' |
Net actuarial loss | ' | ' | 254 | 190 | ' |
Ending balance | ' | ' | 252 | 189 | ' |
Post-Retirement Benefits | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' | ' | ' |
Accumulated benefit obligation at end of year | ' | ' | 327 | 302 | ' |
Change in projected benefit obligation: | ' | ' | ' | ' | ' |
Projected benefit obligation at beginning of year | 327 | 302 | 302 | 339 | ' |
Service cost | 5 | 5 | 19 | 19 | 19 |
Interest cost | 4 | 3 | 14 | 15 | 17 |
Employee contributions | ' | ' | 9 | 9 | ' |
Plan amendments | ' | ' | 0 | 0 | ' |
Plan curtailments | ' | ' | ' | 0 | ' |
Actuarial loss (gain) | ' | ' | 1 | -62 | ' |
Benefits paid | ' | ' | -19 | -19 | ' |
Medicare Part D reimbursements | ' | ' | 1 | 1 | ' |
Foreign currency exchange rate changes | ' | ' | 0 | 0 | ' |
Projected benefit obligation at end of year | ' | ' | 327 | 302 | 339 |
Change in plan assets: | ' | ' | ' | ' | ' |
Fair value of plan assets at beginning of year | 267 | 233 | 233 | 204 | ' |
Actual return on plan assets | ' | ' | 24 | 19 | ' |
Employer contributions | ' | ' | 20 | 20 | ' |
Employee contributions | ' | ' | 9 | 9 | ' |
Benefits paid | ' | ' | -19 | -19 | ' |
Foreign currency exchange rate changes | ' | ' | 0 | 0 | ' |
Fair value of plan assets at end of year | ' | ' | 267 | 233 | 204 |
Funded status at end of year: | ' | ' | ' | ' | ' |
Fair value of plan assets | ' | ' | 267 | 233 | 204 |
Benefit obligations | ' | ' | 327 | 302 | 339 |
Underfunded status of the plan | ' | ' | -60 | -69 | ' |
Recognized liability | ' | ' | -60 | -69 | ' |
Amounts recognized on the consolidated balance sheet consist of: | ' | ' | ' | ' | ' |
Non-current assets | ' | ' | 0 | 0 | ' |
Current liabilities | ' | ' | -1 | -1 | ' |
Non-current liabilities | ' | ' | -59 | -68 | ' |
Recognized liability | ' | ' | -60 | -69 | ' |
Amounts recognized in accumulated other comprehensive (loss)/income: | ' | ' | ' | ' | ' |
Prior service (benefit) cost | ' | ' | -3 | -3 | ' |
Net actuarial loss | ' | ' | 39 | 43 | ' |
Ending balance | ' | ' | $36 | $40 | ' |
Retirement_Benefit_Plans_Actua
Retirement Benefit Plans , Actuarial Assumptions and Plan Assets Target Allocations (Detail) | 12 Months Ended | ||
Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | |
U.S. Pension Benefits | ' | ' | ' |
Weighted average assumptions - projected benefit obligation: | ' | ' | ' |
Discount rate | 4.75% | 4.55% | 5.05% |
Rate of compensation increase | 3.90% | 3.90% | 3.80% |
Weighted average assumptions - net period benefit cost: | ' | ' | ' |
Discount rate | 4.55% | 5.05% | 5.80% |
Expected return on plan assets | 8.25% | 8.25% | 8.25% |
Rate of compensation increase | 3.90% | 3.80% | 3.80% |
Plan Assets Target Allocations | ' | ' | ' |
Target allocations | 100.00% | 100.00% | ' |
U.S. Pension Benefits | Equity Securities | ' | ' | ' |
Plan Assets Target Allocations | ' | ' | ' |
Target allocations | 50.00% | 50.00% | ' |
U.S. Pension Benefits | Debt Securities | ' | ' | ' |
Plan Assets Target Allocations | ' | ' | ' |
Target allocations | 20.00% | 20.00% | ' |
U.S. Pension Benefits | Other | ' | ' | ' |
Plan Assets Target Allocations | ' | ' | ' |
Target allocations | 30.00% | 30.00% | ' |
Non-U.S. Pension Benefits | ' | ' | ' |
Weighted average assumptions - projected benefit obligation: | ' | ' | ' |
Discount rate | 3.32% | 3.52% | 3.98% |
Rate of compensation increase | 2.80% | 2.78% | 2.85% |
Weighted average assumptions - net period benefit cost: | ' | ' | ' |
Discount rate | 3.52% | 3.98% | 4.75% |
Expected return on plan assets | 4.76% | 5.19% | 5.82% |
Rate of compensation increase | 2.78% | 2.85% | 2.97% |
Plan Assets Target Allocations | ' | ' | ' |
Target allocations | 100.00% | 100.00% | ' |
Non-U.S. Pension Benefits | Equity Securities | ' | ' | ' |
Plan Assets Target Allocations | ' | ' | ' |
Target allocations | 41.00% | 40.00% | ' |
Non-U.S. Pension Benefits | Debt Securities | ' | ' | ' |
Plan Assets Target Allocations | ' | ' | ' |
Target allocations | 22.00% | 22.00% | ' |
Non-U.S. Pension Benefits | Other | ' | ' | ' |
Plan Assets Target Allocations | ' | ' | ' |
Target allocations | 37.00% | 38.00% | ' |
Post-Retirement Benefits | ' | ' | ' |
Weighted average assumptions - projected benefit obligation: | ' | ' | ' |
Discount rate | 4.75% | 4.55% | 5.05% |
Initial health care cost trend rate pre-65 | 7.50% | 7.75% | 7.50% |
Initial health care cost trend rate post-65 | 6.75% | 7.00% | 7.25% |
Weighted average assumptions - net period benefit cost: | ' | ' | ' |
Discount rate | 4.55% | 5.05% | 5.80% |
Expected return on plan assets | 8.25% | 8.25% | 8.25% |
Initial health care cost trend rate pre-65 | 7.75% | 7.50% | 7.75% |
Initial health care cost trend rate post-65 | 7.00% | 7.25% | 7.50% |
Retirement_Benefit_Plans_Fair_
Retirement Benefit Plans , Fair Value Measurement (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Partnerships | Minimum | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Range of notice period | '45 days | ' | ' |
Partnerships | Maximum | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Range of notice period | '95 days | ' | ' |
Absolute Return Strategy Funds | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Number of funds | 2 | ' | ' |
Investments at fair value | $5 | ' | ' |
Partnership Exit, Expected Term of Distribution Payments | '5 years | ' | ' |
Private Equity Funds | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Unfunded commitments | 64 | ' | ' |
Real Asset Investments | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Estimated minimum liquidation period | '1 year | ' | ' |
Estimated maximum liquidation period | '15 years | ' | ' |
Real Asset Investments | Minimum | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Estimated liquidation and redemption period | '30 days | ' | ' |
Real Asset Investments | Maximum | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Estimated liquidation and redemption period | '10 years | ' | ' |
U.S. Pension Benefits | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 1,917 | 1,717 | 1,470 |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' |
Beginning balance | 851 | 752 | ' |
Total realized gains(losses) and other-than-temporary impairment losses included in earnings | 23 | 8 | ' |
Total unrealized gains (losses) included in other comprehensive income | 86 | 62 | ' |
Purchases and sales, net | -1 | 29 | ' |
Ending balance | 959 | 851 | ' |
U.S. Pension Benefits | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 390 | 556 | ' |
U.S. Pension Benefits | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 568 | 310 | ' |
U.S. Pension Benefits | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 959 | 851 | ' |
U.S. Pension Benefits | Short-term Investments | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 157 | 195 | ' |
U.S. Pension Benefits | Short-term Investments | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 157 | 195 | ' |
U.S. Pension Benefits | Short-term Investments | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
U.S. Pension Benefits | Short-term Investments | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
U.S. Pension Benefits | U.S. Government Securities | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 158 | 172 | ' |
U.S. Pension Benefits | U.S. Government Securities | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 108 | 145 | ' |
U.S. Pension Benefits | U.S. Government Securities | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 50 | 27 | ' |
U.S. Pension Benefits | U.S. Government Securities | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
U.S. Pension Benefits | Corporate Debt Securities | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 60 | 62 | ' |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' |
Beginning balance | 1 | 1 | ' |
Total realized gains(losses) and other-than-temporary impairment losses included in earnings | 0 | 0 | ' |
Total unrealized gains (losses) included in other comprehensive income | 0 | 0 | ' |
Purchases and sales, net | 0 | 0 | ' |
Ending balance | 1 | 1 | ' |
U.S. Pension Benefits | Corporate Debt Securities | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
U.S. Pension Benefits | Corporate Debt Securities | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 59 | 61 | ' |
U.S. Pension Benefits | Corporate Debt Securities | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 1 | 1 | ' |
U.S. Pension Benefits | Common Stock | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 125 | 216 | ' |
U.S. Pension Benefits | Common Stock | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 125 | 216 | ' |
U.S. Pension Benefits | Common Stock | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
U.S. Pension Benefits | Common Stock | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
U.S. Pension Benefits | Equity Mutual Funds/Commingled Trusts | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 578 | 377 | ' |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' |
Beginning balance | 227 | 193 | ' |
Total realized gains(losses) and other-than-temporary impairment losses included in earnings | 0 | 0 | ' |
Total unrealized gains (losses) included in other comprehensive income | 58 | 34 | ' |
Purchases and sales, net | 0 | 0 | ' |
Ending balance | 285 | 227 | ' |
U.S. Pension Benefits | Equity Mutual Funds/Commingled Trusts | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
U.S. Pension Benefits | Equity Mutual Funds/Commingled Trusts | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 293 | 150 | ' |
U.S. Pension Benefits | Equity Mutual Funds/Commingled Trusts | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 285 | 227 | ' |
U.S. Pension Benefits | Fixed Income Mutual Funds | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 166 | 72 | ' |
U.S. Pension Benefits | Fixed Income Mutual Funds | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
U.S. Pension Benefits | Fixed Income Mutual Funds | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 166 | 72 | ' |
U.S. Pension Benefits | Fixed Income Mutual Funds | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
U.S. Pension Benefits | Partnership Units | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 673 | 623 | ' |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' |
Beginning balance | 623 | 558 | ' |
Total realized gains(losses) and other-than-temporary impairment losses included in earnings | 23 | 8 | ' |
Total unrealized gains (losses) included in other comprehensive income | 28 | 28 | ' |
Purchases and sales, net | -1 | 29 | ' |
Ending balance | 673 | 623 | ' |
U.S. Pension Benefits | Partnership Units | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
U.S. Pension Benefits | Partnership Units | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
U.S. Pension Benefits | Partnership Units | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 673 | 623 | ' |
Non-U.S. Pension Benefits | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 889 | 733 | 638 |
Non-U.S. Pension Benefits | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Non-U.S. Pension Benefits | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 868 | 715 | ' |
Non-U.S. Pension Benefits | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 21 | 18 | ' |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' |
Beginning balance | 18 | 16 | ' |
Total unrealized gains (losses) included in other comprehensive income | 1 | 1 | ' |
Purchases and sales, net | 1 | 1 | ' |
Ending balance | 21 | 18 | ' |
Foreign currency exchange | 1 | ' | ' |
Non-U.S. Pension Benefits | Partnership Units | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 10 | 8 | ' |
Non-U.S. Pension Benefits | Partnership Units | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Non-U.S. Pension Benefits | Partnership Units | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Non-U.S. Pension Benefits | Partnership Units | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 10 | 8 | ' |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' |
Beginning balance | 8 | 7 | ' |
Total unrealized gains (losses) included in other comprehensive income | 1 | 1 | ' |
Purchases and sales, net | 1 | 0 | ' |
Ending balance | 10 | 8 | ' |
Foreign currency exchange | 0 | ' | ' |
Non-U.S. Pension Benefits | Registered Investment Companies | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 868 | 715 | ' |
Non-U.S. Pension Benefits | Registered Investment Companies | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Non-U.S. Pension Benefits | Registered Investment Companies | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 868 | 715 | ' |
Non-U.S. Pension Benefits | Registered Investment Companies | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Non-U.S. Pension Benefits | Insurance Contracts | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 11 | 10 | ' |
Non-U.S. Pension Benefits | Insurance Contracts | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Non-U.S. Pension Benefits | Insurance Contracts | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Non-U.S. Pension Benefits | Insurance Contracts | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 11 | 10 | ' |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' |
Beginning balance | 10 | 9 | ' |
Total unrealized gains (losses) included in other comprehensive income | 0 | 0 | ' |
Purchases and sales, net | 0 | 1 | ' |
Ending balance | 11 | 10 | ' |
Foreign currency exchange | 1 | ' | ' |
Post-Retirement Benefits | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 267 | 233 | 204 |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' |
Beginning balance | 120 | 108 | ' |
Total realized gains(losses) and other-than-temporary impairment losses included in earnings | 4 | 5 | ' |
Total unrealized gains (losses) included in other comprehensive income | 13 | 4 | ' |
Purchases and sales, net | 1 | 3 | ' |
Ending balance | 138 | 120 | ' |
Other items to reconcile to fair value of plan assts | -9 | -10 | ' |
Post-Retirement Benefits | Short-term Investments | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 22 | 28 | ' |
Post-Retirement Benefits | Short-term Investments | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 22 | 28 | ' |
Post-Retirement Benefits | Short-term Investments | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Post-Retirement Benefits | Short-term Investments | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Post-Retirement Benefits | U.S. Government Securities | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 23 | 24 | ' |
Post-Retirement Benefits | U.S. Government Securities | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 16 | 20 | ' |
Post-Retirement Benefits | U.S. Government Securities | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 7 | 4 | ' |
Post-Retirement Benefits | U.S. Government Securities | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Post-Retirement Benefits | Corporate Debt Securities | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 9 | 9 | ' |
Post-Retirement Benefits | Corporate Debt Securities | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Post-Retirement Benefits | Corporate Debt Securities | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 9 | 9 | ' |
Post-Retirement Benefits | Corporate Debt Securities | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Post-Retirement Benefits | Common Stock | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 18 | 31 | ' |
Post-Retirement Benefits | Common Stock | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 18 | 31 | ' |
Post-Retirement Benefits | Common Stock | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Post-Retirement Benefits | Common Stock | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Post-Retirement Benefits | Equity Mutual Funds/Commingled Trusts | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 83 | 53 | ' |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' |
Beginning balance | 32 | 28 | ' |
Total realized gains(losses) and other-than-temporary impairment losses included in earnings | 0 | 4 | ' |
Total unrealized gains (losses) included in other comprehensive income | 9 | 0 | ' |
Purchases and sales, net | 0 | 0 | ' |
Ending balance | 41 | 32 | ' |
Post-Retirement Benefits | Equity Mutual Funds/Commingled Trusts | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Post-Retirement Benefits | Equity Mutual Funds/Commingled Trusts | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 42 | 21 | ' |
Post-Retirement Benefits | Equity Mutual Funds/Commingled Trusts | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 41 | 32 | ' |
Post-Retirement Benefits | Fixed Income Mutual Funds | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 24 | 10 | ' |
Post-Retirement Benefits | Fixed Income Mutual Funds | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Post-Retirement Benefits | Fixed Income Mutual Funds | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 24 | 10 | ' |
Post-Retirement Benefits | Fixed Income Mutual Funds | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Post-Retirement Benefits | Partnership Units | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 97 | 88 | ' |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ' | ' | ' |
Beginning balance | 88 | 80 | ' |
Total realized gains(losses) and other-than-temporary impairment losses included in earnings | 4 | 1 | ' |
Total unrealized gains (losses) included in other comprehensive income | 4 | 4 | ' |
Purchases and sales, net | 1 | 3 | ' |
Ending balance | 97 | 88 | ' |
Post-Retirement Benefits | Partnership Units | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Post-Retirement Benefits | Partnership Units | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Post-Retirement Benefits | Partnership Units | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 97 | 88 | ' |
Post-Retirement Benefits | Fair Value of Plan Assets before Reconciling Items | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 276 | 243 | ' |
Post-Retirement Benefits | Fair Value of Plan Assets before Reconciling Items | Level 1 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 56 | 79 | ' |
Post-Retirement Benefits | Fair Value of Plan Assets before Reconciling Items | Level 2 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | 82 | 44 | ' |
Post-Retirement Benefits | Fair Value of Plan Assets before Reconciling Items | Level 3 | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets | $138 | $120 | ' |
Retirement_Benefit_Plans_Fundi
Retirement Benefit Plans, Funding and Effect of 1% Change in Assumed Health Care Cost Trend Rates (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Apr. 25, 2014 |
Estimated Medicare Part D Receipts | ' |
2015 | $0 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
2020 - 2024 | 0 |
Total | 0 |
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates | ' |
Effect on post-retirement benefit cost, 1% point increase | 1 |
Effect on post-retirement benefit obligation, 1% point increase | 11 |
Effect on post-retirement benefit cost, 1% point decrease | -1 |
Effect on post-retirement benefit obligation, 1% point decrease | -9 |
U.S. Pension Benefits | ' |
Estimated Future Benefit Payments | ' |
2015 | 59 |
2016 | 69 |
2017 | 78 |
2018 | 88 |
2019 | 98 |
2020 - 2024 | 659 |
Total | 1,051 |
Non-U.S. Pension Benefits | ' |
Estimated Future Benefit Payments | ' |
2015 | 36 |
2016 | 30 |
2017 | 31 |
2018 | 33 |
2019 | 32 |
2020 - 2024 | 187 |
Total | 349 |
Post-Retirement Benefits | ' |
Estimated Future Benefit Payments | ' |
2015 | 12 |
2016 | 14 |
2017 | 16 |
2018 | 18 |
2019 | 20 |
2020 - 2024 | 137 |
Total | $217 |
Leases_Detail
Leases (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Capitalized Leases | ' | ' | ' |
2015 | $18 | ' | ' |
2016 | 17 | ' | ' |
2017 | 34 | ' | ' |
2018 | 22 | ' | ' |
2019 | 22 | ' | ' |
Thereafter | 64 | ' | ' |
Total minimum lease payments | 177 | ' | ' |
Less amounts representing interest | -24 | ' | ' |
Present value of net minimum lease payments | 153 | ' | ' |
Operating Leases | ' | ' | ' |
2015 | 112 | ' | ' |
2016 | 77 | ' | ' |
2017 | 45 | ' | ' |
2018 | 21 | ' | ' |
2019 | 13 | ' | ' |
Thereafter | 23 | ' | ' |
Total minimum lease payments | 291 | ' | ' |
Rent expense for operating leases | 150 | 140 | 153 |
Sale Leaseback Transaction, Gross Proceeds | $165 | ' | ' |
Term of Lease | '10 years | ' | ' |
Monthly payments due years 1-5 | '5 years | ' | ' |
Annual payments due years 6-10 | '5 years | ' | ' |
Discontinued_Operations_Detail
Discontinued Operations (Detail) (USD $) | 6 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 28, 2011 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | Jan. 30, 2012 | Apr. 27, 2012 |
Physio-Control | Physio-Control | |||||
Discontinued Operations | ' | ' | ' | ' | ' | ' |
Net assets | ' | ' | ' | ' | $164 | ' |
Proceeds from divestiture of Physio-Control | ' | 0 | 0 | 386 | 386 | ' |
Summary of Operating Results from Discontinued Operations before Tax | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | 323 |
Earnings from operations of Physio-Control | ' | ' | ' | ' | ' | 48 |
Physio-Control divestiture-related costs | ' | ' | ' | ' | ' | -42 |
Gain on sale of Physio-Control | ' | 0 | 0 | 218 | ' | 218 |
Income tax expense | ' | ' | ' | ' | ' | -22 |
Earnings from discontinued operations | ' | 0 | 0 | 202 | ' | 202 |
Reclassification of divestiture related costs from continuing operations to discontinued operations | $12 | ' | ' | ' | ' | ' |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, except Per Share data, unless otherwise specified | Jul. 25, 2014 | Apr. 25, 2014 | Jan. 24, 2014 | Oct. 25, 2013 | Jul. 26, 2013 | Apr. 26, 2013 | Jan. 25, 2013 | Oct. 26, 2012 | Jul. 27, 2012 | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | $4,273 | $4,566 | $4,163 | $4,194 | $4,083 | $4,459 | $4,027 | $4,095 | $4,008 | $17,005 | $16,590 | $16,184 |
Gross Profit | ' | 3,395 | 3,113 | 3,104 | 3,061 | 3,325 | 3,028 | 3,075 | 3,035 | 12,672 | 12,464 | ' |
Net earnings | $871 | $448 | $762 | $902 | $953 | $969 | $988 | $646 | $864 | $3,065 | $3,467 | $3,617 |
Basic Earnings per | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings (per share) | $0.88 | $0.45 | $0.76 | $0.90 | $0.94 | $0.96 | $0.98 | $0.63 | $0.84 | $3.06 | $3.40 | $3.43 |
Diluted Earnings per | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings (per share) | $0.87 | $0.44 | $0.75 | $0.89 | $0.93 | $0.95 | $0.97 | $0.63 | $0.83 | $3.02 | $3.37 | $3.41 |
Subsequent_Events_Update_Unaud
Subsequent Events Update (Unaudited) (Detail) (USD $) | Jul. 25, 2014 | Oct. 03, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Nov. 07, 2014 | Jul. 25, 2014 | Nov. 07, 2014 | Jul. 25, 2014 | Nov. 07, 2014 | Jun. 15, 2014 | Jul. 25, 2014 | Nov. 07, 2014 | Jul. 25, 2014 | Nov. 07, 2014 | Jul. 25, 2014 |
Covidien PLC | Subsequent Event | Line Of Credit Facility 2017 | Line Of Credit Facility 2017 | Amended and Restated Revolving Credit Facility | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | IrSub | IrSub | IrSub | |
Covidien PLC | Credit Facility | Credit Facility | Subsequent Event | Term Loan Credit Agreement [Member] | Term Loan Credit Agreement [Member] | Bridge Loan | Bridge Loan | Bridge Loan | Bridge Loan | Bridge Loan | Bridge Loan | Bridge Loan | Bridge Loan | ||
Credit Facility | Subsequent Event | Subsequent Event | Senior Unsecured Bridge Credit Agreement | Senior Unsecured Bridge Credit Agreement | Senior Unsecured Bridge Credit Agreement | Senior Unsecured Bridge Credit Agreement | Senior Unsecured Bridge Credit Agreement | Senior Unsecured Cash Bridge Credit Agreement | Senior Unsecured Cash Bridge Credit Agreement | Senior Unsecured Cash Bridge Credit Agreement | |||||
Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash required to finance the cash component of transaction | $13,200,000,000 | $16,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum credit available | ' | ' | 2,250,000,000 | 2,250,000,000 | 3,500,000,000 | ' | 5,000,000,000 | ' | ' | 2,800,000,000 | ' | 11,300,000,000 | ' | ' | ' |
Debt term | ' | ' | '5 years | ' | ' | '3 years | ' | '364 days | ' | '364 days | '364 days | ' | '60 days | ' | '60 days |
Terminated loan | ' | ' | ' | ' | ' | ' | ' | ' | $2,800,000,000 | ' | ' | ' | ' | $13,500,000,000 | ' |
Schedule_II_Detail
Schedule II (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Apr. 25, 2014 | Apr. 26, 2013 | Apr. 27, 2012 | |||
Allowance for Doubtful Accounts | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning of Fiscal Year | $98 | [1] | $100 | [1] | $97 | [1] |
Charged to Earnings | 43 | [1] | 51 | [1] | 66 | [1] |
Charges to Other Accounts | 0 | [1] | 0 | [1] | 0 | [1] |
Other Changes (Debit) Credit | -30 | [1],[2] | -53 | [1],[2] | -55 | [1],[2] |
Effects of Foreign Currency | 4 | [1],[3] | 0 | [1],[3] | -8 | [1],[3] |
Balance at End of Fiscal Year | 115 | [1] | 98 | [1] | 100 | [1] |
Deferred Tax Valuation Allowance | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning of Fiscal Year | 313 | [1] | 258 | [1] | 286 | [1] |
Charged to Earnings | 104 | [1] | 71 | [1] | 49 | [1] |
Charges to Other Accounts | 5 | [1] | 0 | [1] | 0 | [1] |
Other Changes (Debit) Credit | -29 | [1],[4] | -15 | [1],[4] | -77 | [1],[4] |
Effects of Foreign Currency | 4 | [1],[3] | -1 | [1],[3] | 0 | [1],[3] |
Balance at End of Fiscal Year | $397 | [1] | $313 | [1] | $258 | [1] |
[1] | For the fiscal year ended April 27, 2012, amounts include the results from both continuing operations and discontinued operations. | |||||
[2] | Uncollectible accounts written off, less recoveries. | |||||
[3] | Reflects primarily the effects of foreign currency fluctuations. | |||||
[4] | Decrease in deferred tax valuation allowance due to carryover attribute utilization and expiration. |