Guarantor Financial Information | Guarantor Financial Information On January 26, 2015, Medtronic plc (Parent Company Guarantor) and Medtronic Global Holdings S.C.A. (Medtronic Luxco), a subsidiary guarantor, each provided a full and unconditional guarantee of the obligations of Medtronic, Inc. under the Senior Notes (Medtronic Senior Notes). In addition, Medtronic plc and Medtronic Luxco each provided a full and unconditional guarantee of the obligations of Covidien International Finance S.A. (CIFSA), assumed as part of the Covidien acquisition, under the Senior Notes (CIFSA Senior Notes). These guarantees of the CIFSA Senior Notes were in addition to the guarantees of the CIFSA Senior Notes by legacy Covidien holding companies Covidien Ltd. (f/k/a Covidien plc) and Covidien Group Holdings Ltd. (f/k/a Covidien Ltd.), both of which remain guarantors of the CIFSA Senior Notes. A summary of the guarantees is as follows: Guarantees of Medtronic Senior Notes • Parent Company Guarantor - Medtronic plc • Subsidiary Issuer - Medtronic, Inc. • Subsidiary Guarantor - Medtronic Luxco Since Medtronic plc and Medtronic Luxco did not exist in the comparable period in the prior fiscal year, the Parent Company Guarantor column and Subsidiary Guarantor column in the consolidating financial information for the guarantee of the Medtronic Senior Notes will appear as zeros for the comparable period in fiscal year 2015. Accordingly, the consolidating financial information presented for the comparable period in the prior year is of the predecessor registrant, Medtronic, Inc. Guarantees of CIFSA Senior Notes • Parent Company Guarantor - Medtronic plc • Subsidiary Issuer - CIFSA • Subsidiary Guarantors - Medtronic Luxco, Covidien Ltd., and Covidien Group Holdings Ltd. There were no Medtronic plc or Medtronic Luxco guarantees in effect prior to the Acquisition Date, and the CIFSA Senior Notes were assumed as part of the Covidien acquisition. Therefore, no consolidating financial information for the period ended January 23, 2015 is presented related to the guarantee of the CIFSA Senior Notes. The following presents the Company’s Consolidating Statements of Comprehensive Income as of and for the three and nine months ended January 29, 2016 and January 23, 2015 , and Condensed Consolidating Balance Sheets as of January 29, 2016 and April 24, 2015 , and Condensed Consolidating Statements of Cash Flows as of and for the nine months ended January 29, 2016 . The guarantees provided by the Parent Company Guarantor and Subsidiary Guarantor(s) are joint and several. Condensed consolidating financial information for the Parent Company Guarantor, Subsidiary Issuer, and Subsidiary Guarantor(s), on a stand-alone basis, is presented using the equity method of accounting for subsidiaries. During the third quarter of fiscal year 2016, the Company undertook certain steps to reorganize ownership of various subsidiaries. The transactions were entirely among subsidiaries under the common control of Medtronic. This reorganization has been reflected as of the beginning of the earliest period presented. In addition, the Company made a revision to its condensed consolidating balance sheet of the guarantees of the CIFSA Senior Notes as previously presented in Note 19 in the Company’s Annual Report on Form 10-K for the year ended April 24, 2015. The $14.700 billion revision increased the line items Investment in Subsidiaries and Shareholders' Equity in the Subsidiary Issuer (CIFSA) column due to an incorrect presentation primarily related to the investment balance upon acquisition and an intercompany dividend. Additionally, the Company made certain revisions to its condensed consolidating balance sheet of the guarantees of the Medtronic Senior Notes as previously presented in Note 19 in the Company’s Annual Report on Form 10-K for the year ended April 24, 2015. There is no impact to the consolidated financial statements of Medtronic plc as previously filed in the 2015 Annual Report on Form 10-K or Quarterly Reports on Form 10-Q. Consolidating Statement of Comprehensive Income Three Months Ended January 29, 2016 Medtronic Senior Notes (in millions) Parent Company Guarantor (Medtronic plc) Subsidiary Issuer (Medtronic, Inc.) Subsidiary Guarantor Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ 349 $ — $ 6,934 $ (349 ) $ 6,934 Costs and expenses: Cost of products sold — 242 — 2,261 (362 ) 2,141 Research and development expense — 66 — 480 — 546 Selling, general, and administrative expense 31 79 — 2,207 — 2,317 Restructuring charges, net — — — 19 — 19 Certain litigation charges — — — — — — Acquisition-related items — 36 — 27 — 63 Amortization of intangible assets — 3 — 481 — 484 Other (income) expense, net — (280 ) — 289 — 9 Operating profit (loss) (31 ) 203 — 1,170 13 1,355 Interest income — (58 ) (173 ) (99 ) 231 (99 ) Interest expense 7 408 3 88 (231 ) 275 Interest (income) expense, net 7 350 (170 ) (11 ) — 176 Equity in net (income) loss of subsidiaries (1,130 ) (228 ) (962 ) — 2,320 — Income (loss) from operations before income taxes 1,092 81 1,132 1,181 (2,307 ) 1,179 Provision (benefit) for income taxes (3 ) (16 ) 2 101 — 84 Net income (loss) 1,095 97 1,130 1,080 (2,307 ) 1,095 Other comprehensive income (loss), net of tax (1,494 ) (120 ) (1,615 ) (1,212 ) 2,947 (1,494 ) Total comprehensive income (loss) $ (399 ) $ (23 ) $ (485 ) $ (132 ) $ 640 $ (399 ) Consolidating Statement of Comprehensive Income Nine Months Ended January 29, 2016 Medtronic Senior Notes (in millions) Parent Company Guarantor (Medtronic plc) Subsidiary Issuer (Medtronic, Inc.) Subsidiary Guarantor Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ 1,085 $ — $ 21,266 $ (1,085 ) $ 21,266 Costs and expenses: Cost of products sold — 753 — 7,089 (1,063 ) 6,779 Research and development expense — 348 — 1,301 — 1,649 Selling, general, and administrative expense 93 228 — 6,788 — 7,109 Restructuring charges, net — 4 — 155 — 159 Certain litigation charges — — — 26 — 26 Acquisition-related items — 91 — 92 — 183 Amortization of intangible assets — 9 — 1,439 — 1,448 Other (income) expense, net — (859 ) — 986 — 127 Operating profit (loss) (93 ) 511 — 3,390 (22 ) 3,786 Interest (income) — (179 ) (531 ) (328 ) 717 (321 ) Interest expense 12 1,307 6 297 (717 ) 905 Interest (income) expense, net 12 1,128 (525 ) (31 ) — 584 Equity in net (income) of subsidiaries (2,529 ) 4,729 (2,006 ) — (194 ) — Income (loss) from operations before income taxes 2,424 (5,346 ) 2,531 3,421 172 3,202 Provision (benefit) for income taxes (11 ) (94 ) 2 870 — 767 Net income (loss) 2,435 (5,252 ) 2,529 2,551 172 2,435 Other comprehensive income (loss), net of tax (1,781 ) (367 ) (1,781 ) (1,414 ) 3,562 (1,781 ) Total comprehensive income $ 654 $ (5,619 ) $ 748 $ 1,137 $ 3,734 $ 654 Consolidating Statement of Comprehensive Income Three Months Ended January 23, 2015 Medtronic Senior Notes (in millions) Parent Company Guarantor (Medtronic plc) Subsidiary Issuer (Medtronic, Inc.) Subsidiary Guarantor Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ 301 $ — $ 4,318 $ (301 ) $ 4,318 Costs and expenses: Cost of products sold — 214 — 1,216 (302 ) 1,128 Research and development expense — 69 — 304 — 373 Selling, general, and administrative expense — 178 — 1,309 — 1,487 Special (gains) charges, net — (98 ) — (40 ) — (138 ) Acquisition-related items — 76 — 4 — 80 Amortization of intangible assets — 3 — 86 — 89 Other (income) expense, net — (370 ) — 394 — 24 Operating profit (loss) — 229 — 1,045 1 1,275 Interest income — — — (96 ) 1 (95 ) Interest expense — 166 — 11 (1 ) 176 Interest (income) expense, net — 166 — (85 ) — 81 Equity in net (income) loss of subsidiaries — (975 ) — — 975 — Income from operations before income taxes — 1,038 — 1,130 (974 ) 1,194 Provision (benefit) for income taxes — 61 — 156 — 217 Net income — 977 — 974 (974 ) 977 Other comprehensive income, net of tax — (155 ) — 34 (34 ) (155 ) Total comprehensive income $ — $ 822 $ — $ 1,008 $ (1,008 ) $ 822 Consolidating Statement of Comprehensive Income Nine Months Ended January 23, 2015 Medtronic Senior Notes (in millions) Parent Company Guarantor (Medtronic plc) Subsidiary Issuer (Medtronic, Inc.) Subsidiary Guarantor Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ 913 $ — $ 12,957 $ (913 ) $ 12,957 Costs and expenses: Cost of products sold — 655 — 3,628 (908 ) 3,375 Research and development expense — 303 — 809 — 1,112 Selling, general, and administrative expense — 661 — 3,839 — 4,500 Special (gains) charges, net — 2 — (40 ) — (38 ) Restructuring charges, net — — — 30 — 30 Acquisition-related items — 180 — 2 — 182 Amortization of intangible assets — 9 — 256 — 265 Other (income) expense, net — (903 ) — 1,041 — 138 Operating profit (loss) — 6 — 3,392 (5 ) 3,393 Interest income — — — (275 ) 1 (274 ) Interest expense — 339 — 30 (1 ) 368 Interest (income) expense, net — 339 — (245 ) — 94 Equity in net income of subsidiaries — (3,001 ) — — 3,001 — Income from operations before income taxes — 2,668 — 3,637 (3,006 ) 3,299 Provision (benefit) for income taxes — (8 ) — 631 — 623 Net income — 2,676 — 3,006 (3,006 ) 2,676 Other comprehensive income, net of tax — (64 ) — 1 (1 ) (64 ) Total comprehensive income $ — $ 2,612 $ — $ 3,007 $ (3,007 ) $ 2,612 Condensed Consolidating Balance Sheet January 29, 2016 Medtronic Senior Notes (in millions) Parent Company Guarantor (Medtronic plc) Subsidiary Issuer (Medtronic, Inc.) Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total ASSETS Current assets: Cash and cash equivalents $ — $ 29 $ 1 $ 2,691 $ — $ 2,721 Investments — — — 14,565 — 14,565 Accounts receivable, net — — — 4,863 — 4,863 Inventories — 164 — 3,593 (221 ) 3,536 Intercompany receivable 249 162,357 — 164,957 (327,563 ) — Tax assets — 237 — 265 — 502 Prepaid expenses and other current assets 4 128 — 1,250 — 1,382 Total current assets 253 162,915 1 192,184 (327,784 ) 27,569 Property, plant, and equipment, net — 1,058 — 3,578 — 4,636 Goodwill — 1,672 — 38,704 — 40,376 Other intangible assets, net — 34 — 27,282 — 27,316 Long-term tax assets — 550 — 510 — 1,060 Investment in subsidiaries 71,188 37,072 64,991 — (173,251 ) — Intercompany loans receivable 3,000 7,491 10,539 12,763 (33,793 ) — Other assets — 750 — 999 — 1,749 Total assets $ 74,441 $ 211,542 $ 75,531 $ 276,020 $ (534,828 ) $ 102,706 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term borrowings $ — $ 501 $ 1,292 $ 360 $ — $ 2,153 Accounts payable — 266 — 1,171 — 1,437 Intercompany payable 20,490 151,745 — 155,328 (327,563 ) — Accrued compensation 6 516 — 959 — 1,481 Accrued income taxes 8 — 2 444 — 454 Deferred tax liabilities — — — — — — Other accrued expenses 1 666 — 1,949 — 2,616 Total current liabilities 20,505 153,694 1,294 160,211 (327,563 ) 8,141 Long-term debt — 29,017 — 4,664 — 33,681 Long-term accrued compensation and retirement benefits — 1,016 — 569 — 1,585 Long-term accrued income taxes 10 1,369 — 1,443 — 2,822 Long-term intercompany loans payable 3,110 10,122 10,053 10,508 (33,793 ) — Long-term deferred tax liabilities — — — 3,802 — 3,802 Other long-term liabilities — 200 — 1,659 — 1,859 Total liabilities 23,625 195,418 11,347 182,856 (361,356 ) 51,890 Shareholders’ equity 50,816 16,124 64,184 93,164 (173,472 ) 50,816 Total liabilities and shareholders’ equity $ 74,441 $ 211,542 $ 75,531 $ 276,020 $ (534,828 ) $ 102,706 Condensed Consolidating Balance Sheet April 24, 2015 Medtronic Senior Notes (in millions) Parent Company Guarantor (Medtronic plc) Subsidiary Issuer (Medtronic, Inc.) Subsidiary Guarantor Subsidiary Non-guarantors Consolidating Adjustments Total ASSETS Current assets: Cash and cash equivalents $ 263 $ 1,071 $ 170 $ 3,339 $ — $ 4,843 Investments — — — 14,637 — 14,637 Accounts receivable, net — — — 5,112 — 5,112 Inventories — 165 — 3,497 (199 ) 3,463 Intercompany receivable 259 146,942 — 144,638 (291,839 ) — Tax assets — 295 — 1,040 — 1,335 Prepaid expenses and other current assets 4 128 — 1,322 — 1,454 Total current assets 526 148,601 170 173,585 (292,038 ) 30,844 Property, plant, and equipment, net — 976 — 3,723 — 4,699 Goodwill — 1,607 — 38,923 — 40,530 Other intangible assets, net — 39 — 28,062 — 28,101 Long-term tax assets — 294 — 480 — 774 Investment in subsidiaries 70,233 42,250 63,064 — (175,547 ) — Intercompany loans receivable 3,000 6,516 10,000 10,218 (29,734 ) — Other assets — 678 — 1,059 — 1,737 Total assets $ 73,759 $ 200,961 $ 73,234 $ 256,050 $ (497,319 ) $ 106,685 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term borrowings $ — $ 1,110 $ — $ 1,324 $ — $ 2,434 Accounts payable — 261 — 1,349 — 1,610 Intercompany payable 20,506 135,660 — 135,673 (291,839 ) — Accrued compensation 1 490 — 1,120 — 1,611 Accrued income taxes 19 — — 916 — 935 Deferred tax liabilities 3 — — 116 — 119 Other accrued expenses — 628 — 1,836 — 2,464 Total current liabilities 20,529 138,149 — 142,334 (291,839 ) 9,173 Long-term debt — 29,004 — 4,748 — 33,752 Long-term accrued compensation and retirement benefits — 965 — 570 — 1,535 Long-term accrued income taxes — 1,048 — 1,428 — 2,476 Long-term intercompany loans payable — 10,218 10,000 9,516 (29,734 ) — Long-term deferred tax liabilities — — — 4,700 — 4,700 Other long-term liabilities — 207 — 1,612 — 1,819 Total liabilities 20,529 179,591 10,000 164,908 (321,573 ) 53,455 Shareholders’ equity 53,230 21,370 63,234 91,142 (175,746 ) 53,230 Total liabilities and shareholders’ equity $ 73,759 $ 200,961 $ 73,234 $ 256,050 $ (497,319 ) $ 106,685 Condensed Consolidating Statement of Cash Flows Nine Months Ended January 29, 2016 Medtronic Senior Notes (in millions) Parent Company Guarantor (Medtronic plc) Subsidiary Issuer (Medtronic, Inc.) Subsidiary Guarantor Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by (used in) operating activities $ (15 ) $ 839 $ 525 $ 4,051 $ (1,508 ) $ 3,892 Investing Activities: Acquisitions, net of cash acquired — — — (1,132 ) — (1,132 ) Additions to property, plant, and equipment — (210 ) — (483 ) — (693 ) Purchases of marketable securities — — — (4,509 ) — (4,509 ) Sales and maturities of marketable securities — — — 4,017 — 4,017 Net increase (decrease) in intercompany loans — (975 ) (539 ) (2,544 ) 4,058 — Increase in investment in subsidiary — — — — — — Other investing activities, net — — — (11 ) — (11 ) Net cash provided by (used in) investing activities — (1,185 ) (539 ) (4,662 ) 4,058 (2,328 ) Financing Activities: Acquisition-related contingent consideration — — — (21 ) — (21 ) Change in short-term borrowings, net — — 1,201 22 — 1,223 Repayment of short-term borrowings (maturities greater than 90 days) — — (48 ) — — (48 ) Proceeds from short-term borrowings (maturities greater than 90 days) — — 139 — — 139 Payments on long-term debt — (600 ) — (1,012 ) — (1,612 ) Dividends to shareholders (1,608 ) — — — — (1,608 ) Issuance of ordinary shares 360 — — — — 360 Repurchase of ordinary shares (2,170 ) — — — — (2,170 ) Net intercompany loan borrowings (repayments) 3,110 (96 ) 53 991 (4,058 ) — Intercompany dividend paid — — — (8 ) 8 — Capital contribution — — (1,500 ) — 1,500 — Other financing activities 60 — — — — 60 Net cash provided by (used in) financing activities (248 ) (696 ) (155 ) (28 ) (2,550 ) (3,677 ) Effect of exchange rate changes on cash and cash equivalents — — — (9 ) — (9 ) Net change in cash and cash equivalents (263 ) (1,042 ) (169 ) (648 ) — (2,122 ) Cash and cash equivalents at beginning of period 263 1,071 170 3,339 — 4,843 Cash and cash equivalents at end of period $ — $ 29 $ 1 $ 2,691 $ — $ 2,721 Condensed Consolidating Statement of Cash Flows Nine Months Ended January 23, 2015 Medtronic Senior Notes (in millions) Parent Company Guarantor (Medtronic plc) Subsidiary Issuer (Medtronic, Inc.) Subsidiary Guarantor Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by operating activities $ — $ 995 $ — $ 2,021 $ (26 ) $ 2,990 Investing Activities: Acquisitions, net of cash acquired — — — (611 ) — (611 ) Additions to property, plant, and equipment — (116 ) — (200 ) — (316 ) Purchases of marketable securities — — — (5,327 ) — (5,327 ) Sales and maturities of marketable securities — — — 4,351 — 4,351 Net decrease in intercompany loans — 3 — 39 (42 ) — Other investing activities, net — — — 60 — 60 Net cash used in investing activities — (113 ) — (1,688 ) (42 ) (1,843 ) Financing Activities: Acquisition-related contingent consideration — — — (5 ) — (5 ) Change in short-term borrowings, net — 7 — — — 7 Repayment of short-term borrowings (maturities greater than 90 days) — (150 ) — — — (150 ) Proceeds from short-term borrowings (maturities greater than 90 days) — 150 — — — 150 Issuance of long-term debt — 16,918 — — — 16,918 Payments on long-term debt — (13 ) — — — (13 ) Dividends to shareholders — (902 ) — — — (902 ) Issuance of ordinary shares — 477 — — — 477 Repurchase of ordinary shares — (1,620 ) — — — (1,620 ) Net intercompany loan borrowings (repayments) — (39 ) — (3 ) 42 — Intercompany dividend paid — — — (26 ) 26 — Other financing activities — (64 ) — — — (64 ) Net cash (used in) provided by financing activities — 14,764 — (34 ) 68 14,798 Effect of exchange rate changes on cash and cash equivalents — — — (117 ) — (117 ) Net change in cash and cash equivalents — 15,646 — 182 — 15,828 Cash and cash equivalents at beginning of period — 264 — 1,139 — 1,403 Cash and cash equivalents at end of period $ — $ 15,910 $ — $ 1,321 $ — $ 17,231 Consolidating Statement of Comprehensive Income Three Months Ended January 29, 2016 CIFSA Senior Notes (in millions) Parent Company Guarantor (Medtronic plc) Subsidiary Issuer (CIFSA) Subsidiary Guarantor Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ — $ — $ 6,934 $ — $ 6,934 Costs and expenses: Cost of products sold — — — 2,141 — 2,141 Research and development expense — — — 546 — 546 Selling, general, and administrative expense 31 — 3 2,283 — 2,317 Restructuring charges, net — — — 19 — 19 Certain litigation charges, net — — — — — — Acquisition-related items — — — 63 — 63 Amortization of intangible assets — — — 484 — 484 Other (income) expense, net — — 11 (2 ) — 9 Operating profit (loss) (31 ) — (14 ) 1,400 — 1,355 Interest income — (112 ) (175 ) (100 ) 288 (99 ) Interest expense 7 41 3 512 (288 ) 275 Interest expense (income), net 7 (71 ) (172 ) 412 — 176 Equity in net (income) loss of subsidiaries (1,130 ) (585 ) (972 ) — 2,687 — Income from operations before income taxes 1,092 656 1,130 988 (2,687 ) 1,179 Provision (benefit) for income taxes (3 ) — — 87 — 84 Net income 1,095 656 1,130 901 (2,687 ) 1,095 Other comprehensive loss, net of tax (1,494 ) (40 ) (1,494 ) (1,391 ) 2,925 (1,494 ) Total comprehensive income (loss) $ (399 ) $ 616 $ (364 ) $ (490 ) $ 238 $ (399 ) Consolidating Statement of Comprehensive Income Nine Months Ended January 29, 2016 CIFSA Senior Notes (in millions) Parent Company Guarantor (Medtronic plc) Subsidiary Issuer (CIFSA) Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ — $ — $ 21,266 $ — $ 21,266 Costs and expenses: Cost of products sold — — — 6,779 — 6,779 Research and development expense — — — 1,649 — 1,649 Selling, general, and administrative expense 93 — 3 7,013 — 7,109 Restructuring charges, net — — — 159 — 159 Certain litigation charges, net — — — 26 — 26 Acquisition-related items — — — 183 — 183 Amortization of intangible assets — — — 1,448 — 1,448 Other (income) expense, net — 1 11 115 — 127 Operating profit (loss) (93 ) (1 ) (14 ) 3,894 — 3,786 Interest income — (422 ) (533 ) (330 ) 964 (321 ) Interest expense 12 100 6 1,751 (964 ) 905 Interest expense (income), net 12 (322 ) (527 ) 1,421 — 584 Equity in net (income) loss of subsidiaries (2,529 ) (7,847 ) (2,016 ) — 12,392 — Income from operations before income taxes 2,424 8,168 2,529 2,473 (12,392 ) 3,202 Provision (benefit) for income taxes (11 ) — — 778 — 767 Net income 2,435 8,168 2,529 1,695 (12,392 ) 2,435 Other comprehensive loss, net of tax (1,781 ) (103 ) (1,781 ) (1,678 ) 3,562 (1,781 ) Total comprehensive income (loss) $ 654 $ 8,065 $ 748 $ 17 $ (8,830 ) $ 654 Condensed Consolidating Balance Sheet January 29, 2016 CIFSA Senior Notes (in millions) Parent Company Guarantor (Medtronic plc) Subsidiary Issuer (CIFSA) Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total ASSETS Current assets: Cash and cash equivalents $ — $ 36 $ 1 $ 2,684 $ — $ 2,721 Investments — — — 14,565 — 14,565 Accounts receivable, net — — — 4,863 — 4,863 Inventories — — — 3,536 — 3,536 Intercompany receivable 249 — 60 20,504 (20,813 ) — Tax assets — — — 502 — 502 Prepaid expenses and other current assets 4 — 5 1,373 — 1,382 Total current assets 253 36 66 48,027 (20,813 ) 27,569 Property, plant, and equipment, net — — — 4,636 — 4,636 Goodwill — — — 40,376 — 40,376 Other intangible assets, net — — — 27,316 — 27,316 Long-term tax assets — — — 1,060 — 1,060 Investment in subsidiaries 71,188 33,441 63,719 — (168,348 ) — Intercompany loans receivable 3,000 2,810 12,025 17,264 (35,099 ) — Other assets — — — 1,749 — 1,749 Total assets $ 74,441 $ 36,287 $ 75,810 $ 140,428 $ (224,260 ) $ 102,706 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term borrowings $ — $ — $ 1,292 $ 861 $ — $ 2,153 Accounts payable — — — 1,437 — 1,437 Intercompany payable 20,490 — 277 46 (20,813 ) — Accrued compensation 6 — — 1,475 — 1,481 Accrued income taxes 8 — 2 444 — 454 Deferred tax liabilities — — — — — — Other accrued expenses 1 45 — 2,570 — 2,616 Total current liabilities 20,505 45 1,571 6,833 (20,813 ) 8,141 Long-term debt — 4,519 — 29,162 — 33,681 Long-term accrued compensation and retirement benefits — — — 1,585 — 1,585 Long-term accrued income taxes 10 — — 2,812 — 2,822 Long-term intercompany loans payable 3,110 8,696 10,054 13,239 (35,099 ) — Long-term deferred tax liabilities — — — 3,802 — 3,802 Other long-term liabilities — — — 1,859 — 1,859 Total liabilities 23,625 13,260 11,625 59,292 (55,912 ) 51,890 Shareholders’ equity 50,816 23,027 64,185 81,136 (168,348 ) 50,816 Total liabilities and shareholders’ equity $ 74,441 $ 36,287 $ 75,810 $ 140,428 $ (224,260 ) $ 102,706 Condensed Consolidating Balance Sheet April 24, 2015 CIFSA Senior Notes (in millions) Parent Company Guarantor (Medtronic plc) Subsidiary Issuer (CIFSA) Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total ASSETS Current assets: Cash and cash equivalents $ 263 $ 728 $ 170 $ 3,682 $ — $ 4,843 Investments — — — 14,637 — 14,637 Accounts receivable, net — — — 5,112 — 5,112 Inventories — — — 3,463 — 3,463 Intercompany receivable 259 — 269 20,507 (21,035 ) — Tax assets — — — 1,335 — 1,335 Prepaid expenses and other current assets 4 — 6 1,444 — 1,454 Total current assets 526 728 445 50,180 (21,035 ) 30,844 Property, plant, and equipment, net — — 1 4,698 — 4,699 Goodwill — — — 40,530 — 40,530 Other intangible assets, net — — — 28,101 — 28,101 Long-term tax assets — — — 774 — 774 Investment in subsidiaries 70,233 20,836 61,769 — (152,838 ) — Intercompany loans receivable 3,000 7,401 11,303 17,082 (38,786 ) — Other assets — — — 1,737 — 1,737 Total assets $ 73,759 $ 28,965 $ 73,518 $ 143,102 $ (212,659 ) $ 106,685 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term borrowings $ — $ 1,002 $ — $ 1,432 $ — $ 2,434 Accounts payable — — 2 1,608 — 1,610 Intercompany payable 20,506 — 279 250 (21,035 ) — Accrued compensation 1 — — 1,610 — 1,611 Accrued income taxes 19 — — 916 — 935 Deferred tax liabilities 3 — — 116 — 119 Other accrued expenses — 40 1 2,423 — 2,464 Total current liabilities 20,529 1,042 282 8,355 (21,035 ) 9,173 Long-term debt — 4,581 — 29,171 — 33,752 Long-term accrued compensation and retirement benefits — — — 1,535 — 1,535 Long-term accrued income taxes — — — 2,476 — 2,476 Long-term intercompany loans payable — 8,385 10,002 20,399 (38,786 ) — Long-term deferred tax liabilities — — — 4,700 — 4,700 Other long-term liabilities — — — 1,819 — 1,819 Total liabilities 20,529 14,008 10,284 68,455 (59,821 ) 53,455 Shareholders’ equity 53,230 14,957 63,234 74,647 (152,838 ) 53,230 Total liabilities and shareholders’ equity $ 73,759 $ 28,965 $ 73,518 $ 143,102 $ (212,659 ) $ 106,685 Condensed Consolidating Statement of Cash Flows Nine Months Ended January 29, 2016 CIFSA Senior Notes (in millions) Parent Company Guarantor (Medtronic plc) Subsidiary Issuer (CIFSA) Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by (used in) operating activities $ (15 ) $ 3,316 $ 709 $ 12,343 $ (12,461 ) $ 3,892 Investing Activities: Acquisitions, net of cash acquired — — — (1,132 ) — (1,132 ) Additions to property, plant, and equipment — — — (693 ) — (693 ) Purchases of marketable securities — — — (4,509 ) — (4,509 ) Sales and maturities of marketable securities — — — 4,017 — 4,017 Net (increase) decrease in intercompany loans receivable — 4,592 (722 ) (181 ) (3,689 ) — Other investing activities, net — — — (11 ) — (11 ) Net cash provided by (used in) investing activities — 4,592 (722 ) (2,509 ) (3,689 ) (2,328 ) Financing Activities: Acquisition-related contingent consideration — — — (21 ) — (21 ) Change in short-term borrowings, net — — 1,201 22 — 1,223 Repayment of short-term borrowings (maturities greater than 90 days) — — (48 ) — — (48 ) Proceeds from short-term borrowings (maturities greater than 90 days) — — 139 — — 139 Payments on long-term debt — (1,000 ) — (612 ) — (1,612 ) Dividends to shareholders (1,608 ) — — — — (1,608 ) Issuance of ordinary shares 360 — — — — 360 Repurchase of ordinary shares (2,170 ) — — — — (2,170 ) Net intercompany loan borrowings (repayments) 3,110 311 52 (7,162 ) 3,689 — Intercompany dividend paid — — — (3,050 ) 3,050 — Capital contribution — (7,911 ) (1,500 ) — 9,411 — Other financing activities 60 — — — — 60 Net cash provided by (used in) financing activities (248 ) (8,600 ) (156 ) (10,823 ) 16,150 (3,677 ) Effect of exchange rate changes on cash and cash equivalents — — — (9 ) — (9 ) Net change in cash and cash equivalents (263 ) (692 ) (169 ) (998 ) — (2,122 ) Cash and cash equivalents at beginning of period 263 728 170 3,682 — 4,843 Cash and cash equivalents at end of period $ — $ 36 $ 1 $ 2,684 $ — $ 2,721 |