Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Apr. 28, 2017 | Jun. 21, 2017 | Oct. 28, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Medtronic plc | ||
Entity Central Index Key | 1,613,103 | ||
Document Period End Date | Apr. 28, 2017 | ||
Current Fiscal Year End Date | --04-28 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 112.4 | ||
Entity Common Stock, Shares Outstanding | 1,359,026,669 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 29,710 | $ 28,833 | $ 20,261 |
Costs and expenses: | |||
Cost of products sold | 9,291 | 9,142 | 6,309 |
Research and development expense | 2,193 | 2,224 | 1,640 |
Selling, general, and administrative expense | 9,711 | 9,469 | 6,904 |
Special charge (gain), net | 100 | 70 | (38) |
Restructuring charges, net | 363 | 290 | 237 |
Certain litigation charges | 300 | 26 | 42 |
Acquisition-related items | 220 | 283 | 550 |
Amortization of intangible assets | 1,980 | 1,931 | 733 |
Other expense, net | 222 | 107 | 118 |
Operating profit | 5,330 | 5,291 | 3,766 |
Interest income | (366) | (431) | (386) |
Interest expense | 1,094 | 1,386 | 666 |
Interest expense, net | 728 | 955 | 280 |
Income before provision for income taxes | 4,602 | 4,336 | 3,486 |
Provision for income taxes | 578 | 798 | 811 |
Net income | 4,024 | 3,538 | 2,675 |
Net loss attributable to noncontrolling interests | 4 | 0 | 0 |
Net income attributable to Medtronic | $ 4,028 | $ 3,538 | $ 2,675 |
Basic earnings per share (in dollars per share) | $ 2.92 | $ 2.51 | $ 2.44 |
Diluted earnings per share (in dollars per share) | $ 2.89 | $ 2.48 | $ 2.41 |
Basic weighted average shares outstanding (shares) | 1,378.9 | 1,409.6 | 1,095.5 |
Diluted weighted average shares outstanding (in shares) | 1,391.4 | 1,425.9 | 1,109 |
Cash dividends declared per common share (in dollars per share) | $ 1.72 | $ 1.52 | $ 1.22 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 4,024 | $ 3,538 | $ 2,675 |
Other comprehensive loss, net of tax: | |||
Unrealized gain (loss) on available-for-sale securities | 38 | (121) | 20 |
Translation adjustment | (977) | (197) | (495) |
Net change in retirement obligations | 68 | (66) | (366) |
Unrealized gain (loss) on derivatives | 127 | (300) | 254 |
Other comprehensive loss | (744) | (684) | (587) |
Comprehensive income including noncontrolling interests | 3,280 | 2,854 | 2,088 |
Comprehensive loss attributable to noncontrolling interests | 3 | 0 | 0 |
Comprehensive income attributable to Medtronic | $ 3,283 | $ 2,854 | $ 2,088 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 28, 2017 | Apr. 29, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 4,967 | $ 2,876 |
Investments | 8,741 | 9,758 |
Accounts receivable, less allowances of $155 and $161, respectively | 5,591 | 5,562 |
Inventories, net | 3,338 | 3,473 |
Prepaid expenses and other current assets | 1,865 | 1,931 |
Current assets held for sale | 371 | 0 |
Total current assets | 24,873 | 23,600 |
Property, plant, and equipment, net | 4,361 | 4,841 |
Goodwill | 38,515 | 41,500 |
Other intangible assets, net | 23,407 | 26,899 |
Tax assets | 1,509 | 1,383 |
Other assets | 1,232 | 1,421 |
Noncurrent assets held for sale | 5,919 | 0 |
Total assets | 99,816 | 99,644 |
Current liabilities: | ||
Current debt obligations | 7,520 | 993 |
Accounts payable | 1,731 | 1,709 |
Accrued compensation | 1,860 | 1,712 |
Accrued income taxes | 633 | 566 |
Other accrued expenses | 2,442 | 2,185 |
Current liabilities held for sale | 34 | 0 |
Total current liabilities | 14,220 | 7,165 |
Long-term debt | 25,921 | 30,109 |
Accrued compensation and retirement benefits | 1,641 | 1,759 |
Accrued income taxes | 2,405 | 2,903 |
Deferred tax liabilities | 2,978 | 3,729 |
Other liabilities | 1,515 | 1,916 |
Noncurrent liabilities held for sale | 720 | 0 |
Total liabilities | 49,400 | 47,581 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Ordinary shares— par value $0.0001, 2.6 billion shares authorized, 1,369,424,818 and 1,399,018,022 shares issued and outstanding, respectively | 0 | 0 |
Additional paid-in capital | 29,551 | 32,227 |
Retained earnings | 23,356 | 21,704 |
Accumulated other comprehensive loss | (2,613) | (1,868) |
Total shareholders’ equity | 50,294 | 52,063 |
Noncontrolling interests | 122 | 0 |
Total equity | 50,416 | 52,063 |
Total liabilities and equity | $ 99,816 | $ 99,644 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Apr. 28, 2017 | Apr. 29, 2016 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 155 | $ 161 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (shares) | 2,600,000,000 | 2,600,000,000 |
Common stock, issued (shares) | 1,369,424,818 | 1,399,018,022 |
Common stock, outstanding (shares) | 1,369,424,818 | 1,399,018,022 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Total Shareholders’ Equity | Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Balance (shares) at Apr. 25, 2014 | 999,000,000 | ||||||
Balance at Apr. 25, 2014 | $ 19,443 | $ 19,443 | $ 100 | $ 0 | $ 19,940 | $ (597) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 2,675 | 2,675 | 2,675 | 0 | |||
Other comprehensive income (loss), net of tax | (587) | (587) | (587) | ||||
Ordinary shares issued in connection with the Covidien plc acquisition, net of taxes (shares) | 436,000,000 | ||||||
Ordinary shares issued in connection with the Covidien plc acquisition, net of taxes | 33,787 | 33,787 | 33,787 | ||||
Result of contribution of Medtronic, Inc. to Medtronic plc and other | 0 | 0 | $ (99) | 99 | |||
Dividends to shareholders | (1,337) | (1,337) | (1,337) | ||||
Issuance of shares under stock purchase and award plans (shares) | 17,000,000 | ||||||
Issuance of shares under stock purchase and award plans | 649 | 649 | $ 2 | 647 | |||
Repurchase of ordinary shares (shares) | (30,000,000) | ||||||
Repurchase of ordinary shares | (1,920) | (1,920) | $ (3) | (944) | (973) | ||
Tax benefit from exercise of stock-based awards | 81 | 81 | 81 | ||||
Stock-based compensation | 439 | 439 | 439 | ||||
Balance (shares) at Apr. 24, 2015 | 1,422,000,000 | ||||||
Balance at Apr. 24, 2015 | 53,230 | 53,230 | $ 0 | 34,109 | 20,305 | (1,184) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 3,538 | 3,538 | 3,538 | 0 | |||
Other comprehensive income (loss), net of tax | (684) | (684) | (684) | ||||
Dividends to shareholders | (2,139) | (2,139) | (2,139) | ||||
Issuance of shares under stock purchase and award plans (shares) | 15,000,000 | ||||||
Issuance of shares under stock purchase and award plans | 491 | 491 | 491 | ||||
Repurchase of ordinary shares (shares) | (38,000,000) | ||||||
Repurchase of ordinary shares | (2,830) | (2,830) | (2,830) | ||||
Tax benefit from exercise of stock-based awards | 82 | 82 | 82 | ||||
Stock-based compensation | $ 375 | 375 | 375 | ||||
Balance (shares) at Apr. 29, 2016 | 1,399,018,022 | 1,399,000,000 | |||||
Balance at Apr. 29, 2016 | $ 52,063 | 52,063 | $ 0 | 32,227 | 21,704 | (1,868) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 4,024 | 4,028 | 4,028 | (4) | |||
Other comprehensive income (loss), net of tax | (744) | (745) | (745) | 1 | |||
Dividends to shareholders | (2,376) | (2,376) | (2,376) | ||||
Issuance of shares under stock purchase and award plans (shares) | 13,000,000 | ||||||
Issuance of shares under stock purchase and award plans | 428 | 428 | 428 | ||||
Repurchase of ordinary shares (shares) | (43,000,000) | ||||||
Repurchase of ordinary shares | (3,544) | (3,544) | (3,544) | ||||
Tax benefit from exercise of stock-based awards | 92 | 92 | 92 | ||||
Stock-based compensation | 348 | 348 | 348 | ||||
Additions of noncontrolling ownership interests | $ 125 | 125 | |||||
Balance (shares) at Apr. 28, 2017 | 1,369,424,818 | 1,369,000,000 | |||||
Balance at Apr. 28, 2017 | $ 50,416 | $ 50,294 | $ 0 | $ 29,551 | $ 23,356 | $ (2,613) | $ 122 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Operating Activities: | |||
Net income | $ 4,024 | $ 3,538 | $ 2,675 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 2,917 | 2,820 | 1,306 |
Amortization of debt discount and issuance costs | 11 | 29 | 76 |
Acquisition-related items | (46) | 218 | 634 |
Provision for doubtful accounts | 39 | 49 | 35 |
Deferred income taxes | (459) | (460) | (926) |
Stock-based compensation | 348 | 375 | 439 |
Loss on debt extinguishment | 0 | 163 | 0 |
Other, net | (93) | (111) | (134) |
Change in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable, net | (75) | (435) | (413) |
Inventories, net | (227) | (186) | (282) |
Accounts payable and accrued liabilities | 356 | (379) | 849 |
Other operating assets and liabilities | 85 | (403) | 643 |
Net cash provided by operating activities | 6,880 | 5,218 | 4,902 |
Investing Activities: | |||
Acquisitions, net of cash acquired | (1,324) | (1,213) | (14,884) |
Additions to property, plant, and equipment | (1,254) | (1,046) | (571) |
Purchases of investments | (4,371) | (5,406) | (7,582) |
Sales and maturities of investments | 5,356 | 9,924 | 5,890 |
Other investing activities, net | 22 | (14) | 89 |
Net cash (used in) provided by investing activities | (1,571) | 2,245 | (17,058) |
Financing Activities: | |||
Acquisition-related contingent consideration | (69) | (22) | (85) |
Change in current debt obligations, net | 906 | 7 | (1) |
Repayment of short-term borrowings (maturities greater than 90 days) | (2) | (139) | (150) |
Proceeds from short-term borrowings (maturities greater than 90 days) | 12 | 139 | 150 |
Issuance of long-term debt | 2,140 | 0 | 19,942 |
Payments on long-term debt | (863) | (5,132) | (1,268) |
Dividends to shareholders | (2,376) | (2,139) | (1,337) |
Issuance of ordinary shares | 428 | 491 | 649 |
Repurchase of ordinary shares | (3,544) | (2,830) | (1,920) |
Other financing activities | 85 | 82 | (31) |
Net cash (used in) provided by financing activities | (3,283) | (9,543) | 15,949 |
Effect of exchange rate changes on cash and cash equivalents | 65 | 113 | (353) |
Net change in cash and cash equivalents | 2,091 | (1,967) | 3,440 |
Cash and cash equivalents at beginning of period | 2,876 | 4,843 | 1,403 |
Cash and cash equivalents at end of period | 4,967 | 2,876 | 4,843 |
Cash paid for: | |||
Income taxes | 1,029 | 1,379 | 632 |
Interest | $ 1,134 | $ 1,266 | $ 578 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 28, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations Medtronic plc (Medtronic or the Company) is a 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 to serve hospitals, physicians, clinicians, and patients. Medtronic was founded in 1949 and is headquartered in Dublin, Ireland. Principles of Consolidation The consolidated financial statements include the accounts of Medtronic plc, its wholly-owned subsidiaries, entities for which the Company has a controlling financial interest, and variable interest entities for which the Company is the primary beneficiary. Intercompany transactions and balances have been fully eliminated in consolidation. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. In connection with the preparation of the Form 10-K for the year ended April 28, 2017 , the Company revised its consolidated balance sheet and consolidated statements of equity to properly present additional paid-in capital separate from retained earnings for the prior periods. The revision, which the Company determined is not material, had no impact on total equity, results of operations, or cash flows. Use of Estimates The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used when accounting for items such as income taxes, contingencies, and intangible asset and liability valuations. Actual results may or may not differ from those estimates. Fiscal Year-End The Company utilizes a 52/53-week fiscal year, ending the last Friday in April, for the presentation of its consolidated financial statements and related notes thereto at April 28, 2017 and April 29, 2016 and for each of the three fiscal years ended April 28, 2017 (fiscal year 2017 ), April 29, 2016 (fiscal year 2016 ), and April 24, 2015 (fiscal year 2015 ). Fiscal years 2017 and 2015 were 52-week years. Fiscal year 2016 was a 53-week year, with the additional week occurring in the first quarter. 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 certain debt securities, which include corporate debt securities, government and agency securities, mortgage-backed securities, other asset-backed securities, debt funds, and auction rate securities, are classified and accounted for as available-for-sale. 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 accumulated other 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 primarily include exchange-traded funds and are recorded at fair value on the consolidated balance sheets. Management has used trading securities when seeking to offset changes in liabilities related to equity and other market risks of certain deferred compensation arrangements. 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. These investments are included in other assets on the consolidated balance sheets. If an investment has no quoted market price, the Company accounts for these investments under the cost or the equity method of accounting, as appropriate. Certain of these investments are publicly traded companies and are therefore accounted for as available-for-sale. 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 is recognized in the consolidated statements of income 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 are 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 6 for discussion of the gains and losses recognized on equity and other securities. Inventories Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. The Company reduces the carrying value of inventories for those items that are potentially excess, obsolete or slow-moving based on changes in customer demand, technology developments or other economic factors. 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. The Company assesses property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of property, plant, and equipment asset groupings may not be recoverable. The company utilizes the straight-line method of depreciation over the estimated useful lives of the various assets. The cost of interest that is incurred in connection with ongoing construction projects is capitalized using a weighted average interest rate. These costs are included in property, plant, and equipment and amortized over the useful life of the related asset. Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the estimated fair value of net assets 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 exceeds the estimated fair value of the reporting unit. The estimated fair value is determined using a discounted future cash flow analysis. Intangible assets include patents, trademarks, tradenames, customer relationships, purchased technology, and in-process research and development (IPR&D). Intangible assets with a definite life are amortized on a straight-line basis 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. Acquired IPR&D represents the fair value assigned to those research and development (R&D) projects in development that were acquired in a business combination for which the related products have not received regulatory approval and have no alternative future use. IPR&D is capitalized at its fair value as an indefinite-lived intangible asset, and any development costs incurred after the acquisition are expensed as incurred. The fair value of IPR&D is determined by estimating the future cash flows of each R&D project or technology and discounting the net cash flows back to their present values. Upon achieving regulatory approval or commercial viability for the related technology or product, the indefinite-lived intangible asset is accounted for as a definite-lived asset and is amortized on a straight-line basis over the estimated useful life of the related technology or product. If the R&D project is not completed or the related R&D project is terminated or abandoned, the Company may have an impairment related to the IPR&D which is charged to expense. Contingent Consideration The Company recognizes contingent consideration at fair value at the date of acquisition based on the consideration expected to be transferred, estimated as the probability-weighted future cash flows, discounted back to present value. The discount rate used is determined at the time of measurement in accordance with accepted valuation methodologies. Contingent consideration is remeasured each reporting period with the change in fair value, including accretion for the passage of time, recognized as income or expense within acquisition-related items in the consolidated statements of income. Derivatives The Company recognizes all derivative financial instruments in its consolidated financial statements at fair value in accordance with authoritative guidance on derivatives and hedging, and presents assets and liabilities associated with its derivative financial instruments on a gross basis in the consolidated financial statements. For those derivative instruments that are designated and qualify as hedging instruments, the hedging instrument must be designated, based upon the exposure being hedged, as a fair value hedge, a cash flow hedge, or a hedge of a net investment in a foreign operation. See Note 9 for more information on the Company's derivative instruments and hedging programs. 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. 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: • Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities. • 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. • Level 3 - Inputs are unobservable for the asset or liability. Financial assets that are classified as Level 1 securities include highly liquid government bonds within U.S. government and agency securities and marketable equity securities for which quoted market prices are available. In addition, the Company classifies currency forward contracts as Level 1 since they 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, government and agency securities, other asset-backed securities, debt funds, and mortgage-backed securities whose value is determined using inputs that are observable in the market or may 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. 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. Financial assets that are classified as Level 3 financial assets include certain investment securities for which there is limited market activity such that the determination of fair value requires significant judgment or estimation, certain corporate debt securities and auction rate securities. With the exception of auction rate securities, these securities are 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 could result in a significantly lower (higher) fair value of the securities. Certain investments for which the fair value is measured using the net asset value per share (or its equivalent) practical expedient are excluded from the fair value hierarchy. Financial assets for which the fair value is measured using the net asset value per share practical expedient include certain debt funds, equity and fixed income commingled trusts, and registered investment companies. 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. The amount of the reserve recorded is equal to the net costs to repair or otherwise satisfy the obligation. The Company includes the warranty obligation in other accrued expenses and other long-term liabilities on the consolidated balance sheets. Self-Insurance It is the Company’s policy to self-insure the 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 are 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, post-retirement medical plans, defined contribution savings plans, and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. See Note 17 for assumptions used in determining pension and post-retirement benefit costs. The Company changed the methodology used to estimate the service and interest cost components of net periodic pension cost and net periodic post-retirement benefit cost for the Company’s pension and other post-retirement benefits, effective April 30, 2016. Prior to April 30, 2016, the Company estimated such cost components utilizing a single weighted-average discount rate derived from the market-observed yield curves of high-quality fixed income securities used to measure the pension benefit obligation and accumulated post-retirement benefit obligation. The current methodology utilizes a full yield curve approach in the estimation of these cost components by applying the specific spot rates along the yield curve to their underlying projected cash flows and provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates. The change does not affect the measurement of the Company’s pension obligation or accumulated post-retirement benefit obligation. The Company accounted for this change prospectively as a change in accounting estimate. Revenue Recognition The Company sells its products through direct sales representatives and independent distributors. The Company recognizes revenue when title to the goods and risk of loss transfers to customers, which may be upon shipment or upon delivery to the customer site, based on the contract terms or legal requirements, 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, revenue is recognized 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 recognizes estimated sales returns, discounts, and rebates as a reduction of sales in the same period revenue is recognized. Rebates are estimated based on sales terms, historical experience, and trend analysis. In estimating rebates, the Company considers the lag time between the point of sale and the payment of the rebate claim, contractual commitments, including stated rebate rates, and other relevant information. The Company adjusts reserves to reflect differences between estimated and actual experience, and records such adjustment as a reduction of sales in the period of adjustment. In certain circumstances, the Company enters into arrangements in which multiple deliverables are provided to customers. Under multiple deliverable arrangements, the Company recognizes revenue in accordance with the principles described above and allocates the revenue based on the relative selling price of each deliverable, which is based on vendor specific objective evidence. Shipping and Handling Shipping and handling costs not included in cost of products sold are included in selling, general, and administrative expense in the consolidated statements of income and were $370 million , $316 million , and $284 million in fiscal years 2017 , 2016 , and 2015 , respectively. 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. Contingencies The Company records a liability in the consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount may 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 may be reasonably estimated, the estimated loss or range of loss is disclosed. Insurance recoveries related to potential claims are recognized up to the amount of the recorded liability when coverage is confirmed and the estimated recoveries are probable of payment. These recoveries are not netted against the related liabilities for financial statement presentation. Income Taxes The Company has deferred taxes that 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 may 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 income. 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. 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 income. Other Expense, Net Other expense, net includes royalty income and expense, realized equity security gains and losses, currency transaction and derivative gains and losses, impairment charges on equity securities, Puerto Rico excise tax, and U.S. medical device excise tax. 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 currency impacts arising from the translation of the assets and liabilities 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 income are translated at the average monthly currency exchange rates in effect during the period. Currency transaction gains and losses are included in other expense, net in the consolidated statements of income. 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. 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 and revises those estimates in subsequent periods. The total expense recognized over the vesting period equals the fair value of awards that vest. New Accounting Standards Recently Adopted In April 2015, the Financial Accounting Standards Board (FASB) issued accounting guidance that requires debt issuance costs to be presented in the balance sheet as a direct deduction from the related debt liability. Prior to this amendment, debt issuance costs were recognized as an asset in the balance sheet and did not offset the related debt liability. The Company retrospectively adopted this guidance in the first quarter of fiscal year 2017. Its adoption resulted in a reduction of both assets and liabilities of $138 million on the Company's consolidated balance sheet at April 29, 2016 as previously filed in the Company's Annual Report on Form 10-K for the year ended April 29, 2016 . Not Yet Adopted 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 in an amount that reflects the consideration to which an entity expects to be entitled in exchange for the transfer of 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 2019, and may be applied either retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of the change recognized at the date of initial application (modified retrospective method). Early adoption is permitted. The Company intends to adopt this guidance under the modified retrospective method. The Company is continuing to evaluate the impact of the guidance and will continue to monitor any modifications, clarifications, and interpretations communicated by the FASB. In January 2016, the FASB issued guidance which requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The guidance also includes a simplified impairment assessment of equity investments without readily determinable fair values and presentation and disclosure changes. This accounting guidance is required for the Company to adopt beginning in the first quarter of fiscal year 2019. The Company is unable to estimate the impact of the future adoption of this standard on its financial statements as it will depend on the equity investments at the adoption date. In February 2016, the FASB issued guidance which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet. The guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period in the financial statements and is effective for the Company beginning in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is evaluating the impact of the lease guidance on the Company's consolidated financial statements and anticipates recording additional assets and corresponding liabilities on its consolidated balance sheet related to operating leases within its lease portfolio upon adoption of the guidance. In March 2016, the FASB issued guidance to simplify the accounting for share based payment transactions by requiring all excess tax benefits and deficiencies to be recognized in income tax expense or benefit in earnings; eliminating the requirement to classify the excess tax benefits and deficiencies as additional paid-in capital. Under the new guidance, an entity makes an accounting policy election to either estimate the expected forfeiture awards or account for forfeitures as they occur. This accounting guidance is effective for the Company beginning in the first quarter of fiscal year 2018. The Company recognized excess tax benefits of $92 million , $82 million and $81 million in excess tax benefits in additional paid-in capital in fiscal years 2017 , 2016 , and 2015 , respectively. In October 2016, the FASB issued guidance that requires the tax effect of inter-entity transactions, other than sales of inventory, to be recognized when the transaction occurs. This would eliminate the exception under the current guidance in which the tax effects of inter-entity asset transactions are deferred until the transferred asset is sold to a third party or otherwise recovered through use. This accounting guidance is required for the Company to adopt beginning in the first quarter of fiscal year 2019. Early adoption is permitted. The Company is currently evaluating the impact of the guidance on the Company's consolidated financial statements. |
Acquisitions and Acquisition-Re
Acquisitions and Acquisition-Related Items | 12 Months Ended |
Apr. 28, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Acquisition-Related Items | Acquisitions and Acquisition-Related Items The Company had various acquisitions and other acquisition-related activity during fiscal year 2017 . The Company accounted for the acquisitions noted below as business combinations using the acquisition method of accounting. In accordance with authoritative guidance on business combination accounting, the assets and liabilities of the businesses acquired were recorded and consolidated on the acquisition date at their respective fair values. Goodwill resulting from business combinations is largely attributable to future yet to be defined technologies, new customer relationships, existing workforce of the acquired businesses, and synergies expected to arise after the Company's acquisition of these businesses. The pro forma impact of these acquisitions was not significant, either individually or in the aggregate, to the results of the Company for fiscal year 2017 . The results of operations of acquired businesses have been included in the Company’s consolidated statements of income since the date each business was acquired. The fair values of the assets acquired and liabilities assumed from acquisitions during fiscal year 2017 are as follows: (in millions) HeartWare International, Inc. Smith & Nephew's Gynecology Business All Other Total Other current assets $ 351 $ — $ 23 $ 374 Property, plant, and equipment 14 3 4 21 Other intangible assets 625 167 65 857 Goodwill 427 180 125 732 Other assets 55 — 16 71 Total assets acquired 1,472 350 233 2,055 Current liabilities 143 — 10 153 Deferred tax liabilities 6 — 7 13 Long-term debt 245 — — 245 Other liabilities 6 — 4 10 Total liabilities assumed 400 — 21 421 Net assets acquired $ 1,072 $ 350 $ 212 $ 1,634 HeartWare International, Inc. On August 23, 2016, the Company's Cardiac and Vascular Group acquired HeartWare International, Inc. (HeartWare), a medical device company that develops and manufactures miniaturized implantable heart pumps, or ventricular assist devices, to treat patients around the world suffering from advanced heart failure. Total consideration for the transaction was approximately $1.1 billion . Based upon a preliminary acquisition valuation, the Company acquired $602 million of technology-based and customer-related intangible assets and $23 million of tradenames, with estimated useful lives of 15 and 5 years, respectively, and $427 million of goodwill. The acquired goodwill is not deductible for tax purposes. In addition, the Company acquired $245 million of debt through the acquisition, of which the Company redeemed $203 million as part of a cash tender offer in August 2016. The remaining $42 million of debt acquired is due December 2017 and is recorded within current debt obligations on the consolidated balance sheets. The allocation of consideration is considered preliminary, primarily with respect to certain contingencies. The Company expects to finalize the allocation of purchase price within the one-year measurement period. Sales attributable to HeartWare were $155 million for fiscal year 2017 . Smith & Nephew's Gynecology Business On August 5, 2016, the Company's Minimally Invasive Therapies Group acquired Smith & Nephew's gynecology business, which expands and strengthens Medtronic's minimally invasive surgical offerings and further complements its existing global gynecology business. Total consideration for the transaction was approximately $350 million . The Company acquired $167 million of customer-related and technology-related intangible assets with useful lives of 13 years and $180 million of goodwill. The acquired goodwill is deductible for tax purposes. Sales attributable to Smith & Nephew's gynecology business were $45 million for fiscal year 2017 . For information on the Company's fiscal year 2016 acquisitions, refer to Note 2 to the consolidated financial statements included in the Company's Annual report on Form 10-K for the fiscal year ended April 29, 2016 . Acquisition-Related Items During fiscal year 2017 , the Company recognized acquisition-related items expense of $230 million , including $10 million recognized within cost of products sold in the consolidated statements of income, primarily related to integration-related expenses incurred in connection with the Covidien acquisition. The expenses incurred in connection with the Covidien acquisition include $225 million of professional services and integration expenses and $23 million of accelerated or incremental stock compensation expense. Acquisition-related items expense also includes expenses incurred in connection with the HeartWare acquisition and planned divestiture of a portion of the Patient Monitoring and Recovery business, partially offset by the change in fair value of contingent consideration as a result of revised revenue forecasts and the timing of anticipated regulatory milestones. During fiscal year 2016 , the Company recognized acquisition-related items expense of $283 million , primarily related to expenses incurred in connection with the Covidien acquisition. The expenses incurred in connection with the Covidien acquisition include $219 million of professional services and integration expenses and $58 million of accelerated or incremental stock compensation expense. During fiscal year 2015, the Company recognized acquisition-related items expense of $550 million , primarily related to expenses incurred in connection with the Covidien acquisition. The expenses incurred in connection with the Covidien acquisition include $275 million of professional services and integration expenses, $189 million of accelerated or incremental stock compensation expense, and $69 million of incremental officer and director excise tax. Contingent Consideration Certain of the Company’s business combinations involve potential payment of future consideration that is contingent upon the achievement of certain product development milestones and/or contingent on the acquired business reaching certain performance milestones. 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 using Level 3 inputs, and the change in fair value is recognized within acquisition-related items in the consolidated statements of income. Contingent consideration payments related to the acquisition date fair value are 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 fair value of contingent consideration is measured using projected payment dates, discount rates, probabilities of payment, and projected revenues (for revenue-based considerations). Projected revenues are based on the Company’s most recent internal operational budgets and long-range strategic plans. Changes in projected revenues, probabilities of payment, discount rates, and projected payment dates may result in adjustments to the fair value measurements. The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs: (in millions) Fair Value at April 28, 2017 Valuation Technique Unobservable Input Range Discount rate 11% - 32.5% Revenue-based payments $ 106 Discounted cash flow Probability of payment 30% - 100% Projected fiscal year of payment 2018 - 2026 Discount rate 0.3% - 5.5% Product development-based payments $ 140 Discounted cash flow Probability of payment 75% - 100% Projected fiscal year of payment 2018 - 2025 The fair value of contingent consideration at April 28, 2017 and April 29, 2016 was $246 million and $377 million , respectively. At April 28, 2017 , $180 million was reflected in other liabilities and $66 million was reflected in other accrued expenses in the consolidated balance sheets. At April 29, 2016 , $311 million was reflected in other liabilities and $66 million was reflected in other accrued expenses in the consolidated balance sheets. The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Fiscal Year (in millions) 2017 2016 Beginning Balance $ 377 $ 264 Purchase price contingent consideration 28 149 Contingent consideration payments (76 ) (22 ) Change in fair value of contingent consideration (83 ) (14 ) Ending Balance $ 246 $ 377 |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale | 12 Months Ended |
Apr. 28, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale In April 2017, the Company entered into a definitive agreement for the sale of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses within the Minimally Invasive Therapies Group segment. The transaction is expected to close in the second quarter of fiscal year 2018, subject to the receipt of regulatory approvals and satisfaction of other customary closing conditions. As a result, the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses met the criteria to be classified as held for sale at April 28, 2017 , which requires the Company to present the related assets and liabilities as separate line items in our consolidated balance sheet. The following table presents information related to the assets and liabilities that were classified as held for sale in our consolidated balance sheet: (in millions) April 28, 2017 Inventories, net $ 371 Property, plant, and equipment, net 689 Goodwill 2,910 Other intangible assets, net 2,320 Total assets held for sale $ 6,290 Other accrued expenses $ 34 Accrued compensation and retirement benefits 12 Deferred tax liabilities 707 Other liabilities 1 Total liabilities held for sale $ 754 There were no assets or liabilities classified as held for sale at April 29, 2016 . The Company determined that the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses does not meet the criteria to be classified as discontinued operations. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Apr. 28, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Cost Synergies Initiative The cost synergies initiative is the Company's restructuring program primarily related to the integration of Covidien. This initiative is expected to contribute to the approximately $850 million in cost synergies expected to be achieved as a result of the integration of the Covidien acquisition through fiscal year 2018, including administrative office optimization, manufacturing and supply chain infrastructure, certain program cancellations, and reduction of general and administrative redundancies. Restructuring charges are primarily related to employee termination costs and costs related to manufacturing and facility closures and affect all reportable segments. Cash outlays for the cost synergies initiative restructuring program are scheduled to be substantially complete by the end of fiscal year 2019. A summary of the restructuring accrual, recorded within other accrued expenses and other liabilities in the consolidated balance sheets, and related activity is presented below: (in millions) Employee Termination Costs Asset Write-downs Other Costs Total April 24, 2015 $ 136 $ — $ 7 $ 143 Charges 248 23 61 332 Cash payments (153 ) — (31 ) (184 ) Settled non cash — (23 ) — (23 ) Reversal of excess reserves (18 ) — — (18 ) April 29, 2016 $ 213 $ — $ 37 $ 250 Charges 287 27 54 368 Cash payments (179 ) — (53 ) (232 ) Settled non cash — (27 ) — (27 ) Reversal of excess reserves (60 ) — (8 ) (68 ) April 28, 2017 $ 261 $ — $ 30 $ 291 As part of the cost synergies initiative, for fiscal year 2017 , the Company recognized $441 million in charges, which included $73 million of incremental defined benefit pension and post-retirement related expenses for employees that accepted voluntary early retirement packages. These costs are not included in the table summarizing the restructuring costs above, because they are associated with costs that are accounted for under the pension and post-retirement rules. See Note 17 for further discussion on the incremental defined benefit pension and post-retirement related expenses. The charges recognized during fiscal year 2017 were partially offset by reversals of excess restructuring reserves of $68 million . Reversals of restructuring reserves relate to certain employees identified for termination finding other positions within the Company, cancellations of employee terminations, and employee termination costs being less than initially estimated. Fiscal year 2017 asset write-downs included $17 million of property, plant, and equipment impairments. Fiscal year 2017 asset write-downs also included $10 million of inventory write-offs of discontinued product lines recognized within cost of products sold in the consolidated statements of income. As part of the cost synergies initiative, for fiscal year 2016 , the Company recognized $332 million in charges, which were partially offset by reversals of excess restructuring reserves of $18 million . Reversals of restructuring reserves relate to certain employees identified for termination finding other positions within the Company and revisions to severance provisions. Fiscal year 2016 asset write-downs included $14 million related to property, plant, and equipment impairments. Fiscal year 2016 asset write-downs also inclued $9 million of inventory write-offs of discontinued product lines recognized within cost of products sold in the consolidated statements of income. |
Special Charge
Special Charge | 12 Months Ended |
Apr. 28, 2017 | |
Other Income and Expenses [Abstract] | |
Special Charge | Special Charge During fiscal year 2017 , in continuing the Company's commitment to improve the health of people and communities throughout the world, the Company recognized a special charge of $100 million for a charitable contribution to meet the multi-year funding needs of the Medtronic Foundation, a related party non-profit organization. During fiscal year 2016 , the Company recognized a special charge of $70 million in connection with the impairment of a debt investment. During fiscal year 2015 , the Company recognized special gains of $138 million , which consisted of a $41 million gain on the sale of a product line in the ENT division, and a $97 million gain on the sale of an equity method investment. These special gains were partially offset by a $100 million charitable contribution that the Company made to the Medtronic Foundation. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Apr. 28, 2017 | |
Investments [Abstract] | |
Financial Instruments | Financial Instruments The Company holds investments such as marketable debt and equity securities that are classified and accounted for as trading and available-for-sale and are remeasured on a recurring basis. The Company also holds cost method, equity method, and other investments which are measured at fair value on a nonrecurring basis. Refer to Note 1 for information regarding valuation techniques and inputs used in the fair value measurements. In accordance with authoritative guidance adopted in fiscal year 2017 , certain investments for which the fair value is measured using the net asset value per share (or its equivalent) practical expedient are not presented within the fair value hierarchy. The fair value amounts presented for these investments are intended to permit reconciliation to the consolidated balance sheets. The revised presentation has been applied retrospectively and fiscal year 2016 values have been reclassified to conform to classifications used in the current year. The following table summarizes the Company's investments by significant investment category and the consolidated balance sheet classification at April 28, 2017 : Valuation Balance Sheet Classification (in millions) Cost Unrealized Gains Unrealized Losses Fair Value Investments Other Assets Available-for-sale securities Level 1: U.S. government and agency securities $ 613 $ 2 $ (5 ) $ 610 $ 610 $ — Marketable equity securities 58 49 (4 ) 103 — 103 Total Level 1 671 51 (9 ) 713 610 103 Level 2: Corporate debt securities 4,643 62 (23 ) 4,682 4,682 — U.S. government and agency securities 860 — (10 ) 850 850 — Mortgage-backed securities 766 9 (16 ) 759 759 — Foreign government and agency securities 49 — — 49 49 — Other asset-backed securities 228 1 (1 ) 228 228 — Debt funds 1,246 4 (178 ) 1,072 1,072 — Total Level 2 7,792 76 (228 ) 7,640 7,640 — Level 3: Corporate debt securities 1 — — 1 — 1 Auction rate securities 47 — (3 ) 44 — 44 Total Level 3 48 — (3 ) 45 — 45 Investments measured at net asset value (1) : Debt funds 497 — (6 ) 491 491 — Total available-for-sale securities 9,008 127 (246 ) 8,889 8,741 148 Cost method, equity method, and other investments: Level 3: Cost method, equity method, and other investments 589 — — N/A — 589 Total Level 3: 589 — — N/A — 589 Total cost method, equity method, and other investments 589 — — N/A — 589 Total investments $ 9,597 $ 127 $ (246 ) $ 8,889 $ 8,741 $ 737 (1) Certain investments that are measured at the net asset value per share (or its equivalent) as a practical expedient are excluded from the fair value hierarchy. The fair value amounts presented herein are intended to permit reconciliation to the consolidated balance sheets. The following table summarizes the Company's investments by significant investment categories and the related consolidated balance sheet classification at April 29, 2016 : Valuation Balance Sheet Classification (in millions) Cost Unrealized Gains Unrealized Losses Fair Value Investments Other Assets Available-for-sale securities: Level 1: U.S. government and agency securities $ 792 $ 14 $ (1 ) $ 805 $ 805 $ — Marketable equity securities 75 21 (11 ) 85 — 85 Total Level 1 867 35 (12 ) 890 805 85 Level 2: Corporate debt securities 3,935 85 (24 ) 3,996 3,996 — U.S. government and agency securities 902 2 — 904 904 — Mortgage-backed securities 1,016 17 (18 ) 1,015 1,015 — Other asset-backed securities 192 3 — 195 195 — Debt funds 2,306 5 (247 ) 2,064 2,064 — Total Level 2 8,351 112 (289 ) 8,174 8,174 — Level 3: Corporate debt securities 1 — — 1 — 1 Auction rate securities 47 — (3 ) 44 — 44 Total Level 3 48 — (3 ) 45 — 45 Investments measured at net asset value (1) : Debt funds 734 — (34 ) 700 700 — Total available-for-sale securities 10,000 147 (338 ) 9,809 9,679 130 Trading securities: Level 1: Exchange-traded funds 65 15 (1 ) 79 79 — Total Level 1 65 15 (1 ) 79 79 — Total trading securities 65 15 (1 ) 79 79 — Cost method, equity method, and other investments: Level 3: Cost method, equity method, and other investments 506 — — N/A — 506 Total Level 3 506 — — N/A — 506 Total cost method, equity method, and other investments 506 — — N/A — 506 Total investments $ 10,571 $ 162 $ (339 ) $ 9,888 $ 9,758 $ 636 (1) Certain investments that are measured at the net asset value per share (or its equivalent) as a practical expedient are excluded from the fair value hierarchy. The fair value amounts presented herein are intended to permit reconciliation to the consolidated balance sheets. Marketable Debt and Equity Securities: The following tables present 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 at April 28, 2017 and April 29, 2016 : April 28, 2017 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized Corporate debt securities $ 1,263 $ (19 ) $ 46 $ (4 ) Auction rate securities — — 44 (3 ) Mortgage-backed securities 276 (4 ) 95 (12 ) U.S. government and agency securities 896 (15 ) — — Other asset-backed securities 127 (1 ) — — Debt funds 173 (1 ) 1,125 (183 ) Marketable equity securities 14 (3 ) 2 (1 ) Total $ 2,749 $ (43 ) $ 1,312 $ (203 ) April 29, 2016 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate debt securities $ 756 $ (18 ) $ 136 $ (6 ) Auction rate securities — — 44 (3 ) Mortgage-backed securities 196 (5 ) 92 (5 ) U.S. government and agency securities 308 (4 ) 67 (5 ) Debt funds 670 (26 ) 1,601 (256 ) Marketable equity securities 45 (11 ) — — Total $ 1,975 $ (64 ) $ 1,940 $ (275 ) The following table presents the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 at April 28, 2017 : Valuation Technique Unobservable Input Range (Weighted Average) Auction rate securities Discounted cash flow Years to principal recovery 2 yrs. - 12 yrs. (3 yrs.) Illiquidity premium 6% 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 fiscal years 2017 or 2016 . 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 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): (in millions) Total Level 3 Corporate debt Auction rate April 29, 2016 $ 45 $ 1 $ 44 Unrealized gains/(losses) included in other comprehensive income — — — Settlements — — — April 28, 2017 $ 45 $ 1 $ 44 (in millions) Total Level 3 Corporate debt Auction rate April 24, 2015 $ 106 $ 1 $ 105 Unrealized gains/(losses) included in other comprehensive income (3 ) — (3 ) Settlements (58 ) — (58 ) April 29, 2016 $ 45 $ 1 $ 44 Activity related to the Company’s investment portfolio is as follows: Fiscal Year 2017 2016 2015 (in millions) Debt (1) Equity (2)(3) Debt (1) Equity (2)(4) Debt (1) Equity (2)(5) Proceeds from sales $ 5,224 $ 132 $ 9,881 $ 42 $ 5,640 $ 250 Gross realized gains 75 49 36 38 33 164 Gross realized losses (56 ) — (53 ) — (19 ) — Impairment losses recognized — (30 ) — (114 ) — (29 ) (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 certain acquisitions that occurred during fiscal year 2017 , the Company recognized a non-cash realized gain of $20 million on its previously-held minority investment included in other expense, net in the consolidated statement of income. (4) As a result of certain acquisitions that occurred during fiscal year 2016 , the Company recognized a non-cash realized gain of $9 million on its previously-held minority investment included in other expense, net in the consolidated statement of income. (5) As a result of certain acquisitions that occurred during fiscal year 2015 , the Company recognized a non-cash realized gain of $41 million on its previously-held minority investments included in other expense, net in the consolidated statement of income. Also, a realized gain on an equity method investment totaling $97 million is included in special charge (gain), net in the consolidated statement of income. 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 the Company is invested, the Company believes it has recognized 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. At April 28, 2017 and April 29, 2016 , the credit loss portion of other-than temporary impairments on debt securities was no t significant. The total reductions for available-for-sale debt securities sold during fiscal years 2017 and 2016 were no t significant. The April 28, 2017 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) April 28, 2017 Due in one year or less $ 1,110 Due after one year through five years 2,855 Due after five years through ten years 3,177 Due after ten years 81 Total debt securities $ 7,223 The Company holds investments in marketable equity securities, which are classified as other assets in the consolidated balance sheets. The aggregate carrying amount of these investments was $ 103 million and $85 million at April 28, 2017 and April 29, 2016 , respectively. The Company did not recognize any significant impairment charges related to marketable equity securities during fiscal year 2017 . During the fiscal years 2016 and 2015 the Company determined that the fair value of certain marketable equity securities 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 $20 million and $7 million in impairment charges for fiscal years 2016 and 2015 respectively, which were recognized within other expense, net in the consolidated statements of income. Cost method, equity method, and other investments 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. At April 28, 2017 and April 29, 2016 , the aggregate carrying amount of equity and other securities without a quoted market price and accounted for using the cost or equity method was $ 589 million and $506 million , respectively. Cost and equity method investments are measured at fair value on a nonrecurring basis. Changes in circumstance or the occurrence of events that suggest the Company’s investment may not be recoverable are assessed quarterly. If there are identified events or changes in circumstances that may have a material adverse effect on the fair value of the investment, the investment is assessed for impairment. Cost and equity method 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 in privately-held entities without quoted market prices. To determine the fair value of these investments, the Company uses all pertinent financial information available related to the entities, including financial statements and market participant valuations from recent and proposed equity offerings. During the fiscal years 2017 , 2016 , and 2015 the Company determined that the fair values of certain cost and/or equity 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 $ 30 million of impairment charges during fiscal year 2017 , which were recognized in other expense, net in the consolidated statements of income . During fiscal year 2016 , the Company recognized $23 million of impairment charges, which were recognized in other expense, net and $70 million of impairment charges which were recognized in special charge (gain), net in the consolidated statements of income. During fiscal year 2015 the Company recognized $7 million of impairment charges, which were recognized in other expense, net in the consolidated statements of income . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Apr. 28, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The following table presents the changes in the carrying amount of goodwill by reportable segment: (in millions) Cardiac and Vascular Group Minimally Invasive Therapies Group Restorative Therapies Group Diabetes Group Total April 24, 2015 $ 5,855 $ 23,399 $ 9,424 $ 1,852 $ 40,530 Goodwill as a result of acquisitions 393 264 199 — 856 Measurement period adjustments related to Covidien 21 346 26 — 393 Other adjustments, net — (34 ) 3 — (31 ) Currency adjustment, net (26 ) (191 ) (32 ) 1 (248 ) April 29, 2016 6,243 23,784 9,620 $ 1,853 41,500 Goodwill as a result of acquisitions 457 242 33 — 732 Currency adjustment, net (49 ) (705 ) (53 ) — (807 ) Goodwill reclassified to noncurrent assets held for sale — (2,910 ) — — (2,910 ) April 28, 2017 $ 6,651 $ 20,411 $ 9,600 $ 1,853 $ 38,515 The Company assesses goodwill for impairment annually in the third quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Impairment testing for goodwill is performed at the reporting unit level. There were no changes in reporting units during fiscal year 2017 . 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. The Company did no t recognize any goodwill impairments during fiscal years 2017 , 2016 , and 2015 . Intangible Assets The following table presents the gross carrying amount and accumulated amortization of intangible assets: April 28, 2017 April 29, 2016 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 16,862 $ (2,166 ) $ 18,596 $ (1,331 ) Purchased technology and patents 11,461 (3,690 ) 11,397 (2,976 ) Trademarks and tradenames 772 (461 ) 854 (403 ) Other 77 (42 ) 72 (31 ) Total $ 29,172 $ (6,359 ) $ 30,919 $ (4,741 ) Indefinite-lived: IPR&D $ 594 $ 721 The Company assesses definite-lived 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. 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 recognized 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. The Company did no t recognize any definite-lived intangible asset impairments during fiscal years 2017 , 2016 and 2015 . The Company assesses indefinite-lived intangibles for impairment annually in the third quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. The Company calculates the excess of indefinite-lived intangible assets fair values over their carrying values utilizing a discounted future cash flow analysis. The Company did no t recognize any significant indefinite-lived asset impairments during fiscal years 2017 and 2016 . As a result of the analysis performed during fiscal year 2015 , the fair value of certain IPR&D indefinite-lived assets were deemed to be less than their carrying value, resulting in an impairment loss of $5 million , which was recognized in acquisition-related items in the consolidated statements of income. 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 recognize impairment losses in the future. Amortization Intangible asset amortization expense for fiscal years 2017 , 2016 , and 2015 was $2.0 billion , $1.9 billion , and $733 million , respectively. Estimated aggregate amortization expense by fiscal year based on the current carrying value of definite-lived intangible assets at April 28, 2017 , excluding any possible future amortization associated with acquired IPR&D which has not met technological feasibility and amortization associated with definite-lived intangible assets classified as held for sale at April 28, 2017 , is as follows: (in millions) Amortization Expense 2018 $ 1,809 2019 1,725 2020 1,680 2021 1,666 2022 1,624 |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Apr. 28, 2017 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements Current debt obligations consisted of the following: (in millions) April 28, 2017 April 29, 2016 Bank borrowings $ 396 $ 387 Capital lease obligations 5 106 Commercial paper 901 — Three-year term loan 3,000 — 6.000 percent ten-year 2008 CIFSA senior notes 1,150 — 1.500 percent three-year 2015 senior notes 1,000 — 1.375 percent five-year 2013 senior notes 1,000 — 3.500 percent seven-year 2010 HTWR senior notes 42 — Floating rate three-year 2014 senior notes — 250 0.875 percent three-year 2014 senior notes — 250 Debt premium, net 26 — Current debt obligations $ 7,520 $ 993 Commercial Paper On January 26, 2015, Medtronic Global Holdings S.C.A. (Medtronic Luxco), an entity organized under the laws of Luxembourg, entered into various agreements pursuant to which Medtronic Luxco may issue unsecured commercial paper notes (the 2015 Commercial Paper Program) on a private placement basis up to a maximum aggregate amount outstanding at any time of $3.5 billion . The Company and Medtronic, Inc. have guaranteed the obligations of Medtronic Luxco under the 2015 Commercial Paper Program. At April 28, 2017 , the Company had $901 million of commercial paper outstanding. No amount of commercial paper was outstanding at April 29, 2016 . During fiscal years 2017 and 2016 , the weighted average original maturity of the commercial paper outstanding was approximately 39 days and 49 days , respectively, and the weighted average interest rate was 0.89 percent and 0.57 percent , respectively. The issuance of commercial paper reduces the amount of credit available under the Company's existing line of credit. Bank Borrowings Outstanding bank borrowings at April 28, 2017 were short-term advances to certain non-U.S. subsidiaries under credit agreements with various banks. Bank borrowings consist primarily of borrowings in Japanese Yen at interest rates ranging from 0.17% to 0.18% , and the borrowing is a natural hedge of currency and exchange rate risk. Line of Credit The Company has a $3.5 billion five year revolving syndicated line of credit facility ( $3.5 Billion Revolving Credit Facility), by and among Medtronic, Medtronic, Inc., Medtronic Luxco, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent and issuing bank, which expires in January 2020. The $3.5 Billion Revolving Credit Facility provides the Company with the ability to increase its borrowing capacity by an additional $500 million at any time during the term of the agreement. At each anniversary date of the $3.5 Billion Revolving Credit Facility, but not more than twice prior to the maturity date, the Company could also request a one -year extension of the maturity date. The Company, Medtronic Luxco, and Medtronic, Inc. guarantee the obligations under the Amended and Restated Revolving Credit Agreement. At April 28, 2017 and April 29, 2016 , no amounts were outstanding on the committed line of credit. Interest rates on advances on the Credit Facility 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 agreements also contain customary covenants, all of which the Company remained in compliance with at April 28, 2017 . Long-term debt consisted of the following: April 28, 2017 April 29, 2016 (in millions, except interest rates) Maturity by Fiscal Year Payable Effective Interest Rate Payable Effective Interest Rate 6.000 percent ten-year 2008 CIFSA senior notes 2018 $ — 1.41 % $ 1,150 1.41 % 1.375 percent five-year 2013 senior notes 2018 — 1.41 1,000 1.41 1.500 percent three-year 2015 senior notes 2018 — 1.59 1,000 1.59 5.600 percent ten-year 2009 senior notes 2019 400 5.61 400 5.61 1.700 percent two-year 2017 senior notes 2019 1,000 1.74 — — 4.450 percent ten-year 2010 senior notes 2020 766 4.47 766 4.47 2.500 percent five-year 2015 senior notes 2020 2,500 2.52 2,500 2.52 Floating rate five-year 2015 senior notes 2020 500 1.98 500 1.04 4.200 percent ten-year 2010 CIFSA senior notes 2021 600 2.22 600 2.22 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 3.150 percent seven-year 2015 senior notes 2022 2,500 3.18 2,500 3.18 3.200 percent ten-year 2012 CIFSA senior notes 2023 650 2.66 650 2.66 2.750 percent ten-year 2013 senior notes 2023 530 2.78 530 2.78 2.950 percent ten-year 2013 CIFSA senior notes 2024 310 2.67 310 2.67 3.625 percent ten-year 2014 senior notes 2024 850 3.65 850 3.65 3.500 percent ten-year 2015 senior notes 2025 4,000 3.61 4,000 3.61 3.350 percent ten-year 2017 senior notes 2027 850 3.35 — — 4.375 percent twenty-year 2015 senior notes 2035 2,382 4.44 2,382 4.44 6.550 percent thirty-year 2007 CIFSA senior notes 2038 374 3.75 374 3.75 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 325 4.12 325 4.12 4.625 percent thirty-year 2014 senior notes 2044 650 4.67 650 4.67 4.625 percent thirty-year 2015 senior notes 2045 4,150 4.62 4,000 4.64 Three-year term loan 2018 — — 3,000 1.12 Interest rate swaps 2021-2022 40 — 89 — Capital lease obligations 2019-2025 23 4.81 26 4.66 Bank borrowings 2019-2022 139 1.28 56 6.46 Debt premium, net 2019-2045 135 — 214 — Deferred financing costs 2019-2045 (128 ) — (138 ) — Long-term debt $ 25,921 $ 30,109 Senior Notes The Company had outstanding unsecured senior obligations, including those described 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 the Company. The indentures under which the Senior Notes were issued contain customary covenants, all of which the Company remained in compliance with at April 28, 2017 . The Company used the net proceeds from the sale of the Senior Notes primarily for general corporate purposes, which includes the repayment of other indebtedness of the Company. In March 2017, Medtronic Luxco issued two tranches of Senior Notes with an aggregate face value of $1.850 billion (collectively, the 2017 Senior Notes ). The first tranche consisted of $1.0 billion of 1.700 percent Senior Notes due 2019. The second tranche consisted of $850 million of 3.350 percent Senior Notes due 2027. Concurrent with the offering by Medtronic Luxco, Medtronic, Inc. issued $150 million in principal amount of its 4.625 percent Senior Notes due 2045 (the Reopening Notes ). The Reopening Notes are a further issuance of, and form a single series with, the $4.0 billion principal amount of Medtronic, Inc.'s previously outstanding 4.625 percent Senior Notes due 2045. Interest on the 2017 Senior Notes and the Reopening Notes is payable semi-annually. The Company used the net proceeds from the sale of the 2017 Senior Notes and the Reopening Notes for general corporate purposes. In April 2016, the Company completed a cash tender offer and redemption of $2.7 billion of senior notes for $3.0 billion of total consideration. We recognized a loss on debt extinguishment of $163 million , which included cash premiums and accelerated amortization of deferred financing costs and debt discounts and premiums. The loss on debt extinguishment was recognized in interest expense, net in the consolidated statements of income. In addition to the loss on debt extinguishment, we recognized $20 million of interest expense due to the acceleration of net losses on forward starting interest rate derivatives, which were terminated at the time of original debt issuances relating to the portion of debt extinguished in the tender offer. At April 28, 2017 and April 29, 2016 , the Company had interest rate swap agreements designated as fair value hedges of certain underlying fixed-rate obligations, including the Company’s $500 million 4.125 percent 2011 Senior Notes and $675 million 3.125 percent 2012 Senior Notes. Refer to Note 9 for additional information regarding the interest rate swap agreements. Term Loan On January 26, 2015, Medtronic, Inc. borrowed $3.0 billion for a term of three years under a senior unsecured term loan credit agreement (the “Term Loan Credit Agreement”), among Medtronic, Inc., Medtronic, Medtronic Luxco, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent. The Term Loan Credit Agreement was entered into to finance, in part, the cash component of the acquisition of Covidien and certain transaction expenses. Medtronic and Medtronic Luxco have guaranteed the obligations of Medtronic, Inc. under the Term Loan Credit Agreement. Contractual maturities of debt for the next five fiscal years and thereafter, excluding deferred financing costs, debt premium, net, and the fair value of outstanding interest rate swap agreements are as follows: (in millions) 2018 $ 7,494 2019 1,403 2020 3,778 2021 1,127 2022 3,276 Thereafter 16,290 Total debt 33,368 Less: Current portion of debt 7,494 Long-term portion of debt $ 25,874 Financial Instruments Not Measured at Fair Value At April 28, 2017 , the estimated fair value of the Company’s Senior Notes, including the current portion, was $30.4 billion compared to a principal value of $28.9 billion . At April 29, 2016 the estimated fair value was $29.8 billion compared to a principal value of $27.4 billion . Fair value was estimated using quoted market prices for the publicly registered senior notes, classified as Level 2 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. |
Derivatives and Currency Exchan
Derivatives and Currency Exchange Risk Management | 12 Months Ended |
Apr. 28, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Currency Exchange Risk Management | Derivatives and Currency 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 addition, the Company uses cross currency interest rate swaps to manage currency risk related to certain debt. 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 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 was $10.8 billion at both April 28, 2017 and April 29, 2016 . The information that follows explains the various types of derivatives and financial instruments used by the Company, reasons the Company uses such instruments, and the impact such instruments have on the Company’s consolidated balance sheets, statements of income, and statements of cash flows. Freestanding Derivative Contracts Freestanding derivative contracts are used to offset the Company’s exposure to the change in value of specific foreign currency denominated assets and liabilities and to offset variability of cash flows associated with forecasted transactions denominated in other currencies. These derivatives are not designated as hedges, and therefore, changes in the value of these contracts are recognized in earnings, thereby offsetting the current earnings effect of the related change in value of foreign currency denominated assets, liabilities, and cash flows. The gross notional amount of these contracts outstanding at April 28, 2017 and April 29, 2016 was $4.9 billion and $5.0 billion , respectively. The amounts and classification of the gains in the consolidated statements of income related to derivative instruments, not designated as hedging instruments, for fiscal years 2017 , 2016 , and 2015 are as follows: Fiscal Year (in millions) Classification 2017 2016 2015 Currency exchange rate contracts Other expense, net $ 54 $ 33 $ 210 Cash Flow Hedges 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 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 income, depending on the underlying transaction that is being hedged, 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 2017 , 2016 , or 2015 . No components of the hedge contracts were excluded in the measurement of hedge ineffectiveness and no hedges were derecognized or discontinued during fiscal years 2017 , 2016 , or 2015 . The gross notional amount of these contracts, designated as cash flow hedges, outstanding at April 28, 2017 and April 29, 2016 was $5.8 billion and $5.7 billion , respectively, and will mature within the subsequent three -year period. The amount of gross gains (losses), classification of the gains (losses) in the consolidated statements of income, and the accumulated other comprehensive (loss) income (AOCI) related to the effective portion of currency exchange rate contract derivative instruments designated as cash flow hedges for fiscal years 2017 , 2016 , and 2015 were as follows: Fiscal Year 2017 Recognized in AOCI Recognized in Income (in millions) Amount Classification Amount Currency exchange rate contracts $ 342 Other expense, net $ 173 Total $ 342 $ 173 Fiscal Year 2016 Recognized in AOCI Recognized in Income (in millions) Amount Classification Amount Currency exchange rate contracts $ (165 ) Other expense, net $ 405 Cost of products sold (37 ) Total $ (165 ) $ 368 Fiscal Year 2015 Recognized in AOCI Recognized in Income (in millions) Amount Classification Amount Currency exchange rate contracts $ 707 Other expense, net $ 221 Cost of products sold (65 ) Total $ 707 $ 156 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 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 . No gains or losses relating to ineffectiveness of forward starting interest rate derivative instruments were recognized in interest expense, net during fiscal years 2017 , 2016 , or 2015 . No components of the hedge contracts were excluded in the measurement of hedge ineffectiveness. At April 29, 2016 , the Company had $300 million of fixed pay, forward starting interest rate swaps with a weighted average fixed rate of 3.10 percent in anticipation of planned debt issuances. During fiscal year 2017 , in connection with the issuance of the 2017 Senior Notes, these swaps were terminated. Upon termination, there was no material ineffectiveness on the contracts which were in a net liability position, resulting in a cash payment of $27 million . During fiscal year 2016 , the Company terminated forward starting interest rate derivatives with a consolidated notional amount of $500 million , which were previously entered into in advance of a planned debt issuance that was no longer expected. Upon termination, these swaps were in a net liability position, resulting in a cash payment of $45 million . For fiscal years 2017 and 2016 , the reclassification of the effective portion of the net losses on forward starting interest rate derivative instruments from accumulated other comprehensive loss to interest expense, net was not significant. There were no unrealized gains or losses on outstanding forward starting interest rate swap derivative instruments at April 28, 2017 , as compared to unrealized losses of $48 million at April 29, 2016 . Unrealized losses on outstanding forward starting interest rate swap derivative instruments were recorded in other liabilities , with the offset recorded in accumulated other comprehensive loss in the consolidated balance sheets. For fiscal years 2017 and 2016 , the Company recorded $363 million and $(164) million , respectively, of unrealized gains (losses) in accumulated other comprehensive loss . At April 28, 2017 and April 29, 2016 , the Company had $37 million and $(90) million , respectively, in after-tax net unrealized gains (losses) associated with cash flow hedging instruments recorded in accumulated other comprehensive loss . The Company expects that $73 million of after-tax net unrealized gains at April 28, 2017 will be reclassified into the consolidated statements of earnings over the next 12 months. Fair Value Hedges 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. Changes in the fair value of the derivative instrument are recognized in interest expense, net , and are offset by changes in the fair value of the underlying debt instrument. The gains (losses) from terminated interest rate swap agreements are recognized in long-term debt , increasing (decreasing) the outstanding balances of the debt, and amortized as a reduction of (addition to) 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. At April 28, 2017 and April 29, 2016 , the Company had interest rate swaps in gross notional amounts of $1.2 billion designated as fair value hedges of underlying fixed-rate senior note obligations including the Company’s $500 million 4.125 percent 2011 Senior Notes due 2021 and the $675 million 3.125 percent 2012 Senior Notes due 2022. At April 28, 2017 and April 29, 2016 , the market value of outstanding interest rate swap agreements was an unrealized gain of $41 million and $89 million , respectively, and the market value of the hedged items was an unrealized loss of $41 million and $89 million , respectively, which was recorded in other assets with the offsets recorded in long-term debt on the consolidated balance sheets. No significant hedge ineffectiveness was recorded as a result of these fair value hedges for fiscal years 2017 , 2016 , and 2015 . In addition, the Company did no t recognize any gains or losses during fiscal years 2017 , 2016 , or 2015 on firm commitments that no longer qualify as fair value hedges. Balance Sheet Presentation The following tables summarize the balance sheet classification and fair value of derivative instruments included in the consolidated balance sheets at April 28, 2017 and April 29, 2016 . 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 28, 2017 Derivative Assets Derivative Liabilities (in millions) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedging instruments Currency exchange rate contracts Prepaid expenses and other current assets $ 152 Other accrued expenses $ 43 Interest rate contracts Other assets 41 Other liabilities — Currency exchange rate contracts Other assets 48 Other liabilities 14 Total derivatives designated as hedging instruments $ 241 $ 57 Derivatives not designated as hedging instruments Currency exchange rate contracts Prepaid expenses and other current assets $ 16 Other accrued expenses $ 36 Cross currency interest rate contracts Other assets 5 Other liabilities 11 Total derivatives not designated as hedging instruments $ 21 $ 47 Total derivatives $ 262 $ 104 April 29, 2016 Derivative Assets Derivative Liabilities (in millions) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedging instruments Currency exchange rate contracts Prepaid expenses and other current assets $ 123 Other accrued expenses $ 89 Interest rate contracts Other assets 89 Other liabilities 48 Currency exchange rate contracts Other assets 9 Other liabilities 54 Total derivatives designated as hedging instruments $ 221 $ 191 Derivatives not designated as hedging instruments Commodity derivatives Prepaid expenses and other current assets $ — Other accrued expenses $ 1 Currency exchange rate contracts Prepaid expenses and other current assets 13 Other accrued expenses 23 Cross currency interest rate contracts Other assets 14 Other liabilities 4 Total derivatives not designated as hedging instruments $ 27 $ 28 Total derivatives $ 248 $ 219 The following table provides information by level for the derivative assets and liabilities that are measured at fair value on a recurring basis: April 28, 2017 April 29, 2016 (in millions) Level 1 Level 2 Level 1 Level 2 Derivative assets $ 216 $ 46 $ 145 $ 103 Derivative liabilities 93 11 166 53 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. April 28, 2017 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 216 $ (58 ) $ (55 ) $ 103 Interest rate contracts 41 (15 ) (5 ) 21 Cross currency interest rate contracts 5 (2 ) — 3 $ 262 $ (75 ) $ (60 ) $ 127 Derivative liabilities: Currency exchange rate contracts $ (93 ) $ 73 $ — $ (20 ) Cross currency interest rate contracts (11 ) 2 — (9 ) (104 ) 75 — (29 ) Total $ 158 $ — $ (60 ) $ 98 April 29, 2016 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 145 $ (98 ) $ (1 ) $ 46 Interest rate contracts 89 (20 ) — 69 Cross currency interest rate contracts 14 — — 14 $ 248 $ (118 ) $ (1 ) $ 129 Derivative liabilities: Currency exchange rate contracts $ (166 ) $ 85 $ 26 $ (55 ) Interest rate contracts (48 ) 34 — (14 ) Cross currency interest rate contracts (4 ) — — (4 ) Commodity contracts (1 ) — — (1 ) (219 ) 119 26 (74 ) Total $ 29 $ 1 $ 25 $ 55 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. 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. 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. At April 28, 2017 , the Company received net cash collateral of $60 million from its counterparties. At April 29, 2016 , the Company posted net cash collateral of $25 million to 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. The collateral posted was recorded in prepaid expenses and other current assets , with the offset recorded as a decrease in cash and cash equivalents on the consolidated balance sheets. |
Inventories
Inventories | 12 Months Ended |
Apr. 28, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory balances, net of reserves, were as follows: (in millions) April 28, 2017 April 29, 2016 Finished goods $ 2,211 $ 2,242 Work in-process 458 499 Raw materials 669 732 Total $ 3,338 $ 3,473 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Apr. 28, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment balances and corresponding estimated useful lives were as follows: (in millions) April 28, 2017 April 29, 2016 Estimated Useful Lives Land and land improvements $ 186 $ 215 Up to 20 Buildings and leasehold improvements 2,175 2,394 Up to 40 Equipment 6,435 6,328 Generally 3-7, up to 15 Construction in progress 895 777 — Subtotal 9,691 9,714 Less: Accumulated depreciation (5,330 ) (4,873 ) Property, plant, and equipment, net $ 4,361 $ 4,841 Depreciation is recognized using the straight-line method over the estimated useful lives of the assets. Depreciation expense of $937 million , $889 million , and $573 million was recognized in fiscal years 2017 , 2016 , and 2015 , respectively. Upon retirement or disposal of property, plant, and equipment, the costs and related amounts of accumulated depreciation or amortization are eliminated from the asset and accumulated depreciation accounts. The difference, if any, between the net asset value and the proceeds, is recognized in earnings. |
Warranty Obligations
Warranty Obligations | 12 Months Ended |
Apr. 28, 2017 | |
Product Warranties Disclosures [Abstract] | |
Warranty Obligations | Warranty Obligations The following table presents the changes in the Company’s product warranty obligations: (in millions) Warranty Obligation April 24, 2015 $ 135 Warranty claims provision 64 Settlements (91 ) April 29, 2016 $ 108 Warranty claims provision 61 Settlements (68 ) April 28, 2017 $ 101 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Apr. 28, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Capital Medtronic plc is authorized to issue 2.6 billion Ordinary Shares, $0.0001 par value; 40 thousand Euro Deferred Shares, € 1.00 par value; 127.5 million Preferred Shares, $0.20 par value; and 500 thousand A Preferred Shares, $1.00 par value. Euro Deferred Shares The authorized share capital of the Company includes 40 thousand Euro Deferred Shares, with a par value of € 1.00 per share. As of April 28, 2017 , no Euro Deferred Shares were issued or outstanding. Preferred Shares The authorized share capital of the Company includes 127.5 million of Preferred Shares, with a par value of $0.20 per share. As of April 28, 2017 , no Preferred Shares were issued or outstanding. A Preferred Shares The Company issued 624 A Preferred Shares, par value $1.00 , each to three of its advisors in connection with the transaction agreement associated with the Covidien acquisition dated June 15, 2014, for a total of 1,872 A Preferred Shares outstanding with an aggregate consideration of $75 thousand . The holders of A Preferred Shares are entitled to payment of dividends prior to any other class of shares in the Company equal to twice the dividend to be paid per Company ordinary share. On a return of assets, whether on liquidation or otherwise, the A Preferred Shares are entitled to repayment of the capital paid up thereon in priority to any repayment of capital to the holders of any other shares and the holders of the A Preferred Shares shall not be entitled to any further participation in the assets or profits of the Company. The holders of the A Preferred Shares are not entitled to receive notice of, nor to attend, speak, or vote at any general meeting of the Company. Dividends The timing, declaration and payment of future dividends to holders of our ordinary and A Preferred shares falls within the discretion of the Company's Board of Directors and depends upon many factors, including the statutory requirements of Irish law, the Company's earnings and financial condition, the capital requirements of our businesses, industry practice and any other factors the Board of Directors deems relevant. Ordinary Share Repurchase Program Shares are repurchased from time to time to support the Company’s stock-based compensation programs and to return capital to shareholders. During fiscal years 2017 and 2016 , the Company repurchased approximately 43 million and 38 million shares, respectively, at an average price of $83.03 and $74.92 , respectively. In June 2015, the Company's Board of Directors authorized, subject to the ongoing existence of sufficient distributable reserves, the redemption of 80 million of the Company's ordinary shares. As of April 28, 2017 , the Company had used 51 million of the 80 million shares authorized under the repurchase program, leaving approximately 29 million shares available for future repurchases. In June 2017, the Company’s Board of Directors replaced the existing June 2015 authorization to redeem up to an aggregate number of ordinary shares with an authorization to expend up to an aggregate amount of $5 billion beginning June 26, 2017 to redeem the Company’s ordinary shares. The Company accounts for repurchases of ordinary shares using the par value method and shares repurchased are canceled. |
Stock Purchase and Award Plans
Stock Purchase and Award Plans | 12 Months Ended |
Apr. 28, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Purchase and Award Plans | Stock Purchase and Award Plans The Medtronic, Inc. 2013 Stock Award and Incentive Plan was originally approved by the Company's shareholders in August 2013. In January 2015, the Company's Board of Directors approved an amendment to and assumption of the existing Medtronic, Inc. 2013 Stock Award and Incentive Plan, which created the new Medtronic plc 2013 Stock Award and Incentive Plan (2013 Plan). In fiscal year 2017 , the Company granted stock awards under the 2013 Plan. The 2013 Plan provides 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. At April 28, 2017 , there were approximately 21 million shares available for future grants under the 2013 Plan. Share Options Options are granted at the exercise price, which is equal to the closing price of the Company’s ordinary share on the grant date. The majority of the Company’s options are non-qualified options with a 10 -year life and a 4 -year ratable vesting term. In fiscal year 2017 , the Company granted share options under the 2013 Plan. The Company also grants shares of performance-based share options 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. Restricted Stock Restricted stock awards and restricted stock units (collectively referred to as restricted stock) are granted to officers and key employees. At April 28, 2017 , the Company does no t have any outstanding restricted stock awards. The Company grants restricted stock units that typically cliff vest after four years. The expense recognized for restricted stock units is equal to the grant date fair value, which is equal to the closing stock price on the date of grant. Restricted stock units are expensed over the vesting period and are subject to forfeiture if employment terminates prior to the lapse of the restrictions. The Company also grants shares of performance-based restricted stock units 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. Restricted stock units are not considered issued or outstanding ordinary shares of the Company. Dividend equivalent units are accumulated on restricted stock units during the vesting period. In fiscal year 2017 , the Company granted restricted stock units under the 2013 Plan. At April 28, 2017 , all restricted stock outstanding were restricted stock units. Employees Stock Purchase Plan The Medtronic plc Amended and Restated 2014 Employees Stock Purchase Plan (ESPP) allows participating employees to purchase the Company's ordinary shares at a discount through payroll deductions. 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. Employees may contribute between 2 percent and 10 percent of their wages or the statutory limit under the U.S. Internal Revenue Code toward the purchase of newly issued ordinary shares of the Company 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 $68.68 per share in fiscal year 2017 . At April 28, 2017 , plan participants had approximately $11 million withheld to purchase the Company's ordinary shares at 85 percent of its market value on June 30, 2017, the last trading day before the end of the calendar quarter purchase period. At April 28, 2017 , approximately 18 million ordinary shares were available for future purchase under the ESPP. Stock Option Valuation Assumptions The Company uses the Black-Scholes option pricing model (Black-Scholes model) to determine the fair value of stock options at 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 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 2017 2016 2015 Weighted average fair value of options granted $ 14.70 $ 13.72 $ 25.39 Assumptions used: Expected life (years) (1) 6.18 5.94 4.24 Risk-free interest rate (2) 1.26 % 1.79 % 0.99 % Volatility (3) 21.07 % 21.00 % 21.29 % Dividend yield (4) 1.97 % 1.96 % 1.66 % (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. (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 ordinary shares. Implied volatility is based on market traded options of the Company’s ordinary shares. (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-Based Compensation Expense Pursuant to the transaction agreement associated with the Covidien acquisition dated June 15, 2014, outstanding stock option awards held by Covidien employees upon transaction close were converted into options to acquire the Company's ordinary shares in a manner designed to preserve the intrinsic value of such awards. In addition, unvested restricted stock units granted on or after June 15, 2014 which were held by Covidien employees upon close of the Covidien acquisition were converted into restricted stock units of the Company in a manner designed to preserve the intrinsic value of such awards. The modifications made to the restricted stock units granted on or after June 15, 2014 and all outstanding share options pursuant to the transaction agreement that converted such awards constituted modifications under the authoritative guidance for accounting for stock compensation. This guidance requires the Company to revalue the award upon the transaction close and allocate the revised fair value between consideration paid and continuing expense based on the ratio of service performed through the transaction date over the total service period of the award. The revised fair value allocated to post-combination services resulted in incremental expense which is recognized over the remaining service period of the award. The Company recognized $23 million and $58 million of incremental expense related to these modifications during fiscal year 2017 and 2016 , respectively, within acquisition-related items in the consolidated statements of income. Except for the conversion of share options and restricted stock units discussed herein, the material terms of these awards remained unchanged. The following table presents the components and classification of stock-based compensation expense for stock options, restricted stock, and ESPP shares recognized for fiscal years 2017 , 2016 , and 2015 : Fiscal Year (in millions) 2017 2016 2015 Stock options $ 157 $ 206 $ 140 Restricted stock 169 148 284 Employees stock purchase plan 22 21 15 Total stock-based compensation expense $ 348 $ 375 $ 439 Cost of products sold $ 49 $ 50 $ 23 Research and development expense 41 37 29 Selling, general, and administrative expense 233 212 128 Restructuring charges 2 18 70 Acquisition-related items 23 58 189 Total stock-based compensation expense 348 375 439 Income tax benefits (98 ) (108 ) (138 ) Total stock-based compensation expense, net of tax $ 250 $ 267 $ 301 Stock Options The following table summarizes all stock option activity, including activity from options assumed or issued as a result of acquisitions, during fiscal year 2017 : Options (in thousands) Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding at April 29, 2016 52,970 $ 57.09 Granted 4,061 87.35 Exercised (9,488 ) 40.56 Expired/Forfeited (2,349 ) 73.90 Outstanding at April 28, 2017 45,194 62.41 6.30 $ 952 Vested and expected to vest at April 28, 2017 22,929 75.32 7.89 194 Exercisable at April 28, 2017 19,138 44.71 4.14 735 The following table summarizes the total cash received from the issuance of new shares upon stock option award exercises, the total intrinsic value of options exercised and the related tax benefit during fiscal years 2017 , 2016 , and 2015 : Fiscal Year (in millions) 2017 2016 2015 Cash proceeds from options exercised $ 367 $ 452 $ 609 Intrinsic value of options exercised 403 374 329 Tax benefit related to options exercised 140 131 106 Unrecognized compensation expense related to outstanding stock options at April 28, 2017 was $178 million and is expected to be recognized over a weighted average period of 1.6 years . Restricted Stock The following table summarizes restricted stock activity, including activity from restricted stock assumed or issued as a result of acquisitions, during fiscal year 2017 : Awards (in thousands) Wtd. Avg. Grant Price Nonvested at April 29, 2016 8,820 $ 64.33 Granted 3,198 85.07 Vested (2,727 ) 48.17 Forfeited (503 ) 71.32 Nonvested at April 28, 2017 8,788 $ 76.49 The following table summarizes the weighted-average grant date fair value of restricted stock granted, total fair value of restricted stock vested and related tax benefit during fiscal years 2017 , 2016 , and 2015 : Fiscal Year (in millions, except per share data) 2017 2016 2015 Weighted-average grant-date fair value per restricted stock $ 85.07 $ 77.68 $ 69.30 Fair value of restricted stock vested 131 276 174 Tax benefit related to restricted stock vested 76 76 50 Unrecognized compensation expense related to restricted stock as of April 28, 2017 was $334 million and is expected to be recognized over a weighted average period of 2.5 years . |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is based on income before income taxes reported for financial statement purposes. The components of income before provision for income taxes, based on tax jurisdiction, are as follows: Fiscal Year (in millions) 2017 2016 2015 U.S. $ (234 ) $ 333 $ 639 International 4,836 4,003 2,847 Income before provision for income taxes $ 4,602 $ 4,336 $ 3,486 The provision for income taxes consists of the following: Fiscal Year (in millions) 2017 2016 2015 Current tax expense: U.S. $ 614 $ 440 $ 1,128 International 840 835 502 Total current tax expense 1,454 1,275 1,630 Deferred tax (benefit) expense: U.S. (399 ) (67 ) (705 ) International (477 ) (410 ) (114 ) Net deferred tax benefit (876 ) (477 ) (819 ) Total provision for income taxes $ 578 $ 798 $ 811 Deferred taxes arise because of the different treatment of transactions under U.S. GAAP 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 may 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 income. 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. 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 income. Tax assets (liabilities), shown before jurisdictional netting of deferred tax assets (liabilities), are comprised of the following: (in millions) April 28, 2017 April 29, 2016 Deferred tax assets: Net operating loss, capital loss, and credit carryforwards $ 6,800 $ 7,568 Other accrued liabilities 658 619 Accrued compensation 427 358 Pension and post-retirement benefits 456 530 Stock-based compensation 278 316 Other 308 341 Inventory 277 225 Federal and state benefit on uncertain tax positions 191 308 Unrealized loss on available-for-sale securities and derivative financial instruments — 107 Gross deferred tax assets 9,395 10,372 Valuation allowance (6,311 ) (7,032 ) Total deferred tax assets 3,084 3,340 Deferred tax liabilities: Intangible assets (4,943 ) (5,173 ) Basis impairment — (230 ) Realized loss on derivative financial instruments (112 ) (112 ) Other (74 ) (179 ) Accumulated depreciation (149 ) (189 ) Unrealized gain on available-for-sale securities and derivative financial instruments (18 ) — Outside basis difference of subsidiaries (112 ) — Total deferred tax liabilities (5,408 ) (5,883 ) Prepaid income taxes 475 365 Income tax receivables 218 529 Tax liabilities, net $ (1,631 ) $ (1,649 ) Reported as (after valuation allowance and jurisdictional netting): Prepaid expenses and other current assets $ 545 $ 697 Tax assets 1,509 1,383 Deferred tax liabilities (2,978 ) (3,729 ) Noncurrent liabilities held for sale (707 ) — Tax liabilities, net $ (1,631 ) $ (1,649 ) At April 28, 2017 , the Company had approximately $24.9 billion of net operating loss carryforwards in certain non-U.S. jurisdictions, of which $22.0 billion have no expiration, and the remaining $2.9 billion will expire during fiscal 2018 through 2037. Included in these net operating loss carryforwards are $17.6 billion of net operating losses related to a subsidiary of the Company, substantially all of which were recorded in fiscal 2008 as a result of the receipt of a favorable tax ruling from certain non-U.S. taxing authorities. The Company has recorded a full valuation allowance against these net operating losses, as management does not believe that it is more likely than not that these net operating losses will be utilized. Certain of the remaining non-U.S. net operating loss carryforwards of $7.3 billion have a valuation allowance recorded against the carryforwards, as management does not believe that it is more likely than not that these net operating losses will be utilized. At April 28, 2017 , the Company had $1.0 billion of U.S. federal net operating loss carryforwards, which will expire during fiscal year 2018 through fiscal year 2036. For U.S. state purposes, the Company had $690 million of net operating loss carryforwards at April 28, 2017 , which will expire during fiscal year 2018 through fiscal year 2037. At April 28, 2017 , the Company also had $392 million of tax credits available to reduce future income taxes payable, of which $75 million have no expiration, and the remaining credits expire during fiscal year 2018 through fiscal year 2037. The Company has established valuation allowances of $6.3 billion and $7.0 billion at April 28, 2017 and April 29, 2016 , respectively, primarily related to the uncertainty of the utilization of certain deferred tax assets and primarily comprised of tax loss and credit carryforwards in various jurisdictions. The decrease in the valuation allowance during fiscal year 2017 is primarily driven by carryover attribute utilization and expiration, as well as the effects of currency fluctuations. These valuation allowances would result in a reduction to the provision for income taxes in the consolidated statements of income if they are ultimately not required. At April 28, 2017 , the Company had certain potential non-U.S. tax attributes that had not been recorded in the consolidated financial statements, including $12.0 billion of non-U.S. special deductions with an indefinite carryforward period. The Company has treated these amounts as special deductions for financial statement purposes since utilization is contingent upon the annual performance of certain economic factors. The Company expects to recognize a small portion of the special deduction annually based on meeting the defined economic factors. The Company continues to analyze whether the utilization of such benefits may be accelerated. The Company’s effective income tax rate from continuing operations varied from the U.S. federal statutory tax rate as follows: Fiscal Year 2017 2016 2015 U.S. federal statutory tax rate 35.0 % 35.0 % 35.0 % Increase (decrease) in tax rate resulting from: U.S. state taxes, net of federal tax benefit 1.0 0.9 0.8 Research and development credit (0.9 ) (1.2 ) (0.7 ) Domestic production activities (0.4 ) (0.3 ) (0.4 ) International (27.1 ) (23.4 ) (24.3 ) Puerto Rico Excise Tax (1.5 ) (1.6 ) (1.7 ) Impact of adjustments (1) 5.7 11.4 13.3 Valuation allowance release (1.0 ) (0.9 ) — Other, net 1.8 (1.5 ) 1.3 Effective tax rate 12.6 % 18.4 % 23.3 % (1) Adjustments include the impact of inventory step-up, impact of product technology upgrade commitment, special charge (gain), net, restructuring charges, net, certain litigation charges, acquisition-related items, amortization of intangible assets, loss on previously held forward starting interest rate swaps, debt tender premium, impact of acquisition on interest expense, and certain tax adjustments, net. During fiscal year 2017 , the Company recognized certain tax adjustments of $202 million , including the following: • A charge of $404 million associated with the IRS resolution for the Ardian, CoreValve, Inc., Ablation Frontiers, Inc., PEAK Surgical, Inc. and Salient Surgical Technologies, Inc. acquisition-related issues and the allocation of income between Medtronic, Inc. and its wholly owned subsidiary operating in Puerto Rico for certain businesses. This resolution does not include the businesses that are the subject of the Medtronic, Inc. U.S. Tax Court case for fiscal years 2005 and 2006. • A net charge of $125 million associated with the expected divestiture of a portion of our Patient Monitoring & Recovery division to Cardinal Health. The net charge primarily relates to the tax effect from the recognition of the outside basis difference of certain subsidiaries, which are included in the expected divestiture. • A charge of $86 million associated with the IRS’s disallowance of the utilization of certain net operating losses, along with the recognition of a valuation allowance against the net operating loss deferred tax asset, which were recognized during the year. • A charge of $18 million as a result of the redemption of an intercompany minority interest during the year. • A benefit of $431 million as the result of the resolution of Covidien's previously disclosed Tyco International plc intercompany debt issues with the U.S. Tax Court and the Appeals Division of the IRS. The $202 million of net certain tax adjustments were recognized in provision for income taxes in the consolidated statements of income for fiscal year 2017 . During fiscal year 2016 the Company recognized certain tax adjustments of $417 million , which included the following: • A charge of $442 million primarily related to the U.S. income tax expense resulting from the Company's completion of an internal reorganization of the ownership of certain legacy Covidien businesses that reduced the cash and investments held by its U.S.-controlled non-U.S. subsidiaries (the Internal Reorganization). As a result of the Internal Reorganization, approximately $9.7 billion of cash, cash equivalents and investments in marketable debt and equity securities previously held by U.S.-controlled non-U.S. subsidiaries became available for general corporate purposes. • A $25 million tax benefit associated with the disposition of a wholly owned U.S. subsidiary. The $417 million of net certain tax adjustments were recorded in the provision for income taxes in the consolidated statements of income for fiscal year 2016 . During fiscal year 2015 , the Company recognized certain tax adjustments of $349 million , which included the following: • A charge of $329 million related to the resolution of the Kyphon Inc. (Kyphon) acquisition-related issues with the U.S. Internal Revenue Service (IRS). • A charge of $20 million related to a taxable gain associated with the Covidien acquisition. The $349 million of certain tax adjustments were recognized in provision for income taxes in the consolidated statements of income for fiscal year 2015 . No deferred taxes have been provided for any portion of the approximately $31.8 billion and $29.0 billion of undistributed earnings of the Company’s subsidiaries at April 28, 2017 and April 29, 2016 , respectively, since these earnings have been, and under current plans will continue to be, permanently reinvested in these subsidiaries. During fiscal year 2017, the Company removed its permanently reinvested assertion on $200 million of undistributed earnings of certain subsidiaries in anticipation of the divestiture of a portion of its Patient Monitoring & Recovery division to Cardinal Health. Due to the number of legal entities and jurisdictions involved and the complexity of the legal entity structure of the Company, the complexity of the tax laws in the relevant jurisdictions, including, but not limited to the rules pertaining to the utilization of foreign tax credits in the United States and the impact of projections of income for future years to any calculations, the Company believes it is not practicable to estimate, within any reasonable range, the amount of additional taxes which may be payable upon distribution of these undistributed earnings. Currently, the Company’s operations in Puerto Rico, Switzerland, Singapore, Dominican Republic, Costa Rica, and Israel have various tax incentive grants. The tax reductions as compared to the local statutory rate favorably impacted earnings by $475 million , $474 million , and $414 million in fiscal years 2017 , 2016 , and 2015 , respectively, and earnings per diluted share by $0.34 , $0.33 , and $0.37 in fiscal years 2017 , 2016 , and 2015 , respectively. Unless these grants are extended, they will expire between fiscal years 2018 and 2029. 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 Company had $1.9 billion , $2.7 billion , and $2.9 billion of gross unrecognized tax benefits at April 28, 2017 , April 29, 2016 , and April 24, 2015 , respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal years 2017 , 2016 , and 2015 is as follows: Fiscal Year (in millions) 2017 2016 2015 Gross unrecognized tax benefits at beginning of fiscal year $ 2,703 $ 2,860 $ 1,172 Gross increases: Prior year tax positions 147 36 331 Current year tax positions 75 202 231 Acquisitions 4 — 1,199 Gross decreases: Prior year tax positions (538 ) (116 ) (40 ) Settlements (467 ) (275 ) (33 ) Statute of limitation lapses (28 ) (4 ) — Gross unrecognized tax benefits at end of fiscal year 1,896 2,703 2,860 Cash advance paid in connection with proposed settlements — (384 ) (378 ) Gross unrecognized tax benefits at end of fiscal year, net of cash advance $ 1,896 $ 2,319 $ 2,482 If all of the Company’s unrecognized tax benefits at April 28, 2017 , April 29, 2016 , and April 24, 2015 were recognized, $1.8 billion , $2.1 billion , and $2.2 billion 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 gross unrecognized tax benefits of $1.9 billion as a long-term liability. The Company estimates that within the next 12 months, it is reasonably possible that its uncertain tax positions, excluding interest, could decrease by as much as $225 million , net as a result of the resolution of tax matters with the IRS and other taxing authorities as well as statute of limitation lapses. The Company recognizes interest and penalties related to income tax matters in provision for income taxes in the consolidated statements of income and records the liability in the current or long-term accrued income taxes in the consolidated balance sheets, as appropriate. The Company had $360 million , $609 million , and $656 million of accrued gross interest and penalties at April 28, 2017 , April 29, 2016 , and April 24, 2015 , respectively. During the fiscal years ended April 28, 2017 , April 29, 2016 , and April 24, 2015 , the Company recognized gross interest (income) expense of approximately $(208) million , $80 million , and $142 million , respectively, in provision for income taxes in the consolidated statements of income. 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 other 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. The major tax jurisdictions where the Company conducts business which remain subject to examination are as follows: Jurisdiction Earliest Year Open United States - federal and state 1997 Brazil 2012 Canada 2008 China 2009 Costa Rica 2013 Dominican Republic 2013 France 2011 Germany 2010 India 2001 Ireland 2011 Israel 2010 Italy 2005 Japan 2010 Luxembourg 2012 Mexico 2005 Puerto Rico 2009 Singapore 2011 Switzerland 2011 United Kingdom 2014 See Note 20 for additional information regarding the status of current tax audits and proceedings. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Apr. 28, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per share is calculated using the two-class method, as the Company's A Preferred Shares are considered participating securities. Accordingly, earnings are allocated to both ordinary shares and participating securities in determining earnings per ordinary share. Due to the limited number of A Preferred Shares outstanding, this allocation had no effect on the ordinary earnings per share; therefore, it is not presented below. Basic earnings per share is computed based on the weighted average number of ordinary shares outstanding. Diluted earnings per share is computed based on the weighted number of ordinary shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive ordinary shares been issued, and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive ordinary shares. Potentially dilutive ordinary shares include stock options and other stock-based awards granted under the 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) 2017 2016 2015 Numerator: Net income attributable to ordinary shareholders $ 4,028 $ 3,538 $ 2,675 Denominator: Basic – weighted average shares outstanding 1,378.9 1,409.6 1,095.5 Effect of dilutive securities: Employee stock options 9.0 12.2 9.1 Employee restricted stock units 3.4 4.0 4.3 Other 0.1 0.1 0.1 Diluted – weighted average shares outstanding 1,391.4 1,425.9 1,109.0 Basic earnings per share $ 2.92 $ 2.51 $ 2.44 Diluted earnings per share $ 2.89 $ 2.48 $ 2.41 The calculation of weighted average diluted shares outstanding excludes options to purchase approximately 7 million , 4 million , and 2 million ordinary shares in fiscal years 2017 , 2016 , and 2015 , respectively, because their effect would be anti-dilutive on the Company’s earnings per share. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Apr. 28, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | 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 $602 million , $584 million , and $433 million in fiscal years 2017 , 2016 , and 2015 , 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. At April 28, 2017 and April 29, 2016 , the net underfunded status of the Company’s benefit plans was $1.3 billion and $1.4 billion , respectively. The $1.3 billion underfunded status at April 28, 2017 included $12 million of liabilities classified as held for sale. The liabilities classified as held for sale consisted of $9 million related to pension benefits and $3 million related to post-retirement benefits. During fiscal year 2017 , the Company offered certain eligible U.S. employees voluntary early retirement packages. The acceptance of this offer by eligible U.S. employees caused incremental expenses of $73 million to be recognized during fiscal year 2017 . Of this amount, $60 million related to U.S. pension benefits, $7 million related to U.S. post-retirement benefits, $4 million related to defined contribution plans, and $2 million related to cash payments and administrative fees. Defined Benefit Pension Plans The change in benefit obligation and funded status of the Company’s U.S. and Non-U.S. pension benefits are as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Fiscal Year Fiscal Year (in millions) 2017 2016 2017 2016 Accumulated benefit obligation at end of year: $ 2,879 $ 2,757 $ 1,518 $ 1,367 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 3,048 $ 2,956 $ 1,535 $ 1,647 Service cost 117 120 70 81 Interest cost 109 122 26 31 Employee contributions — — 15 16 Plan curtailments and settlements — (28 ) 6 (133 ) Actuarial (gain) loss (22 ) (42 ) 182 (103 ) Benefits paid (80 ) (80 ) (43 ) (49 ) Special termination benefits 60 — — — Currency exchange rate changes and other — — (57 ) 45 Projected benefit obligation at end of year $ 3,232 $ 3,048 $ 1,734 $ 1,535 Change in plan assets: Fair value of plan assets at beginning of year $ 2,138 $ 2,204 $ 1,113 $ 1,189 Actual return on plan assets 238 (70 ) 109 (44 ) Employer contributions 183 112 76 93 Employee contributions — — 15 16 Plan settlements — (28 ) (1 ) (118 ) Benefits paid (80 ) (80 ) (43 ) (49 ) Currency exchange rate changes and other — — (34 ) 26 Fair value of plan assets at end of year $ 2,479 $ 2,138 $ 1,235 $ 1,113 Funded status at end of year: Fair value of plan assets $ 2,479 $ 2,138 $ 1,235 $ 1,113 Benefit obligations 3,232 3,048 1,734 1,535 Underfunded status of the plans (753 ) (910 ) (499 ) (422 ) Recognized liability $ (753 ) $ (910 ) $ (499 ) $ (422 ) Amounts recognized on the consolidated balance sheets consist of: Non-current assets $ — $ — $ 5 $ 20 Current liabilities (13 ) (12 ) (7 ) (8 ) Non-current liabilities (740 ) (898 ) (497 ) (434 ) Recognized liability $ (753 ) $ (910 ) $ (499 ) $ (422 ) Amounts recognized in accumulated other comprehensive loss: Prior service cost (benefit) $ 3 $ 4 $ (6 ) $ (14 ) Net actuarial loss 1,212 1,361 450 359 Ending balance $ 1,215 $ 1,365 $ 444 $ 345 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 at April 28, 2017 and April 29, 2016 . U.S. and non-U.S. plans with accumulated benefit obligations in excess of plan assets consist of the following: Fiscal Year (in millions) 2017 2016 Accumulated benefit obligation $ 4,188 $ 3,922 Projected benefit obligation 4,677 4,333 Plan assets at fair value 3,454 2,981 Plans with projected benefit obligations in excess of plan assets consist of the following: Fiscal Year (in millions) 2017 2016 Projected benefit obligation $ 4,903 $ 4,362 Plan assets at fair value 3,646 3,009 The net periodic benefit cost of the plans include the following components: U.S. Pension Benefits Non-U.S. Pension Benefits Fiscal Year Fiscal Year (in millions) 2017 2016 2015 2017 2016 2015 Service cost $ 117 $ 120 $ 104 $ 70 $ 81 $ 60 Interest cost 109 122 105 26 31 33 Expected return on plan assets (195 ) (180 ) (160 ) (48 ) (48 ) (41 ) Amortization of prior service cost 1 — — (1 ) — — Amortization of net actuarial loss 88 98 65 17 20 12 Settlement gain — (1 ) — — (10 ) — Special termination benefits 60 — — — — — Net periodic benefit cost $ 180 $ 159 $ 114 $ 64 $ 74 $ 64 The other changes in plan assets and projected benefit obligations recognized in accumulated other comprehensive loss for fiscal year 2017 are as follows: (in millions) U.S. Pension Benefits Non-U.S. Pension Benefits Net actuarial (gain) loss $ (61 ) $ 121 Amortization of prior service cost (1 ) 1 Amortization of net actuarial loss (88 ) (17 ) Prior service cost — 8 Effect of exchange rates — (13 ) Total (gain) loss recognized in accumulated other comprehensive loss $ (150 ) $ 100 Total loss recognized in net periodic benefit cost and accumulated other comprehensive loss $ 30 $ 164 The estimated net actuarial loss that will be amortized from accumulated other comprehensive loss into net periodic benefit cost, before tax, in fiscal year 2018 for U.S. and non-U.S. pension benefits is expected to be $83 million and $17 million , respectively. The actuarial assumptions are as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Fiscal Year Fiscal Year 2017 2016 2015 2017 2016 2015 Critical assumptions – projected benefit obligation: Discount rate 3.70% - 4.30% 3.60% - 4.30% 4.20 % 0.45% - 11.40% 0.25% - 10.20% 1.88 % Rate of compensation increase 3.90 % 3.90 % 3.90 % 2.89 % 2.83 % 2.92 % Critical assumptions – net periodic benefit cost: Discount rate – benefit obligation 3.55% - 4.30% 4.20% - 4.80% 4.75 % 0.25% - 10.20% 0.80% - 9.00% 3.32 % Discount rate – service cost 3.60% - 4.45% 4.20% - 4.80% 4.75 % 0.05% - 10.20% 0.80% - 9.00% 3.32 % Discount rate – interest cost 2.90% - 3.80% 4.20% - 4.80% 4.75 % 0.30% - 10.20% 0.80% - 9.00% 3.32 % Expected return on plan assets 8.20 % 8.20 % 8.25 % 4.45 % 4.35 % 4.77 % Rate of compensation increase 3.90 % 3.90 % 3.90 % 2.83 % 2.92 % 2.80 % The Company changed the methodology used to estimate the service and interest cost components of net periodic pension cost and net periodic postretirement benefit cost for the Company’s pension and other postretirement benefit plans, effective April 30, 2016. Previously, the Company estimated such cost components utilizing a single weighted-average discount rate derived from the market-observed yield curves of high-quality fixed income securities used to measure the pension benefit obligation and accumulated postretirement benefit obligation. The new methodology utilizes a full yield curve approach in the estimation of these cost components by applying the specific spot rates along the yield curve to their underlying projected cash flows and provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates. The current yield curves represent high quality, long-term fixed income instruments. The change does not affect the measurement of the Company’s pension obligation or accumulated postretirement benefit obligation. The Company accounted for this change prospectively as a change in accounting estimate. 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 sponsors trusts that hold the assets for U.S. pension plans and other U.S. post-retirement benefit plans, primarily retiree medical benefits. For investment purposes, the legacy Medtronic U.S. pension and other U.S. post-retirement benefit 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 plans and other U.S. post-retirement benefit plans with the assistance of external consultants. 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 portfolios contain a diversified allocation of investment categories, including equities, fixed income securities, hedge funds, and private equity. Securities are also diversified in terms of domestic and international, short- and long-term, 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, funding rules, and financial and tax considerations are part of the funding and investment allocation process in each country. The weighted average target asset allocations at April 28, 2017 for the plans are 37% equity securities, 29% debt securities, and 34% other. The plans did not hold any investments in the Company’s ordinary shares at April 28, 2017 or April 29, 2016 . The Company’s U.S. plans target asset allocations at April 28, 2017 , compared to the U.S. plans actual asset allocations at April 28, 2017 and April 29, 2016 by asset category, are as follows: U.S. Plans Target Allocation Actual Allocation April 28, 2017 April 28, 2017 April 29, 2016 Asset Category: Equity securities 40 % 45 % 43 % Debt securities 36 37 35 Other 24 18 22 Total 100 % 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. Equity commingled trusts: Comprised of investments in equity securities held in pooled investment vehicles. The valuations of equity commingled trusts are based on the respective net asset values which are determined by the fund daily at market close. The net asset values are calculated based on the valuation of the underlying assets which are determined using observable inputs. The net asset values are not publicly reported and funds are valued at the net asset value practical expedient. Fixed income commingled trusts: Comprised of investments in fixed income securities held in pooled investment vehicles. The valuations of fixed income commingled trusts are based on the respective net asset values which are determined by the fund daily at market close. The net asset values are calculated based on the valuation of the underlying assets which are determined using observable inputs. The net asset values are not publicly reported and funds are valued at the net asset value practical expedient. 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 may be redeemed monthly with notice periods ranging from 45 to 95 days. At April 28, 2017 , there is one absolute return strategy fund totaling $2 million that is in the process of liquidation. The Company expects to receive the proceeds over the next year. Private equity investments consist of common stock and debt instruments of private companies. For private equity funds, the sum of the unfunded commitments at April 28, 2017 is $158 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 . At April 28, 2017 , there is one real estate investment totaling $1 million that is in the process of liquidation. The Company expects to receive the proceeds over the next year. Other valuation procedures are utilized to arrive at fair value if a quoted market price is not available for a partnership investment. Registered investment companies: Valued at net asset values which are not publicly reported. The net asset values are calculated based on the valuation of the underlying assets. The underlying assets are 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 2017 or 2016 . 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 1 for discussion of the fair value measurement terms of Levels 1, 2, and 3. In accordance with authoritative guidance adopted in fiscal year 2017, certain investments for which the fair value is measured using the net asset value per share (or its equivalent) practical expedient are not presented within the fair value hierarchy. The fair value amounts presented for these investments are intended to permit reconciliation to the total fair value of plan assets at April 28, 2017 and April 29, 2016. The revised presentation has been applied retrospectively and fiscal year 2016 values have been reclassified to conform to classifications used in the current year. U.S. Pension Benefits Fair Value at Fair Value Measurements Using Inputs Considered as Investments Measured at Net Asset Value (in millions) April 28, 2017 Level 1 Level 2 Level 3 Short-term investments $ 168 $ 168 $ — $ — $ — U.S. government securities 167 138 29 — — Corporate debt securities 250 — 250 — — Equity commingled trusts 1,127 — — — 1,127 Fixed income commingled trusts 299 — — — 299 Partnership units 468 — — 468 — $ 2,479 $ 306 $ 279 $ 468 $ 1,426 Fair Value at Fair Value Measurements Using Inputs Considered as Investments Measured at Net Asset Value (in millions) April 29, 2016 Level 1 Level 2 Level 3 Short-term investments $ 127 $ 127 $ — $ — $ — U.S. government securities 146 137 9 — — Corporate debt securities 216 — 216 — — Equity commingled trusts 956 — — — 956 Fixed income commingled trusts 231 — — — 231 Partnership units 462 — — 462 — $ 2,138 $ 264 $ 225 $ 462 $ 1,187 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 Investments Partnership Units April 29, 2016 $ 462 $ 462 Total realized gains included in income 25 25 Total unrealized gains included in accumulated other comprehensive (loss) income 28 28 Purchases and sales, net (47 ) (47 ) April 28, 2017 $ 468 $ 468 (in millions) Total Level 3 Investments Corporate Debt Securities Partnership Units April 24, 2015 $ 473 $ 1 $ 472 Total realized gains included in income 10 — 10 Total unrealized losses included in accumulated other comprehensive (loss) income (144 ) (1 ) (143 ) Purchases and sales, net 123 — 123 April 29, 2016 $ 462 $ — $ 462 Non-U.S. Pension Benefits Fair Value at Fair Value Measurements Using Inputs Considered as Investments Measured at Net Asset Value (in millions) April 28, 2017 Level 1 Level 2 Level 3 Registered investment companies $ 1,191 $ — $ — $ — $ 1,191 Insurance contracts 44 — — 44 — $ 1,235 $ — $ — $ 44 $ 1,191 Fair Value at Fair Value Measurements Using Inputs Considered as Investments Measured at Net Asset Value (in millions) April 29, 2016 Level 1 Level 2 Level 3 Registered investment companies $ 1,037 $ — $ — $ — $ 1,037 Insurance contracts 76 — — 76 — $ 1,113 $ — $ — $ 76 $ 1,037 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 Investments Insurance Contracts April 29, 2016 $ 76 $ 76 Total unrealized gains included in accumulated other comprehensive (loss) income 2 2 Purchases and sales, net (31 ) (31 ) Currency exchange rate changes (3 ) (3 ) April 28, 2017 $ 44 $ 44 (in millions) Total Level 3 Investments Insurance Contracts Partnership Units April 24, 2015 $ 76 $ 60 $ 16 Purchases and sales, net (2 ) 14 (16 ) Currency exchange rate changes 2 2 — April 29, 2016 $ 76 $ 76 $ — Retirement Benefit Plan Funding It is the Company’s policy to fund retirement costs within the limits of allowable tax deductions. During fiscal year 2017 , the Company made discretionary contributions of approximately $183 million to the U.S. pension plan. Internationally, the Company contributed approximately $76 million for pension benefits during fiscal year 2017 . The Company anticipates that it will make contributions of $302 million to its pension benefits in fiscal year 2018 . 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 2018 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 Benefits Non-U.S. Pension Benefits Fiscal Year Gross Payments Gross Payments 2018 $ 101 $ 44 2019 110 42 2020 121 43 2021 131 46 2022 143 50 2023 – 2027 901 298 Total $ 1,507 $ 523 Post-retirement Benefit Plans The net periodic benefit cost associated with the Company’s post-retirement benefit plans was $11 million , $12 million , and $14 million in fiscal years 2017 , 2016 , and 2015 , respectively. The Company’s projected benefit obligation for all post-retirement benefit plans was $323 million and $369 million at April 28, 2017 and April 29, 2016 , respectively. The Company’s fair value of plan assets for all post-retirement benefit plans was $289 million and $269 million at April 28, 2017 and April 29, 2016 , respectively. The decrease in the Company's projected benefit obligation during fiscal year 2017 was due to the U.S. post-retirement benefit plan being frozen, effective January 1, 2018. The activity during fiscal year 2016 related to the change in projected benefit obligation was not material. The activity during fiscal years 2017 and 2016 related to the change in fair value of plan assets was not material. 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. Expense recognized under these plans was $347 million , $269 million , and $188 million in fiscal years 2017 , 2016 , and 2015 , respectively. Effective May 1, 2005, the Company froze participation in the original defined benefit pension plan in the U.S. and implemented two new plans: an additional defined benefit pension plan, the Personal Pension Account (PPA), and a new defined contribution plan, the Personal Investment Account (PIA). Employees in the U.S. hired on or after May 1, 2005 but before January 1, 2016 had 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 $58 million , $58 million , and $53 million in fiscal years 2017 , 2016 , and 2015 , respectively. Effective January 1, 2016, the Company froze participation in the existing defined benefit (PPA) and contribution (PIA) pension plans in the U.S. and implemented a new form of benefit under the existing defined contribution plan for legacy Covidien employees and employees in the U.S. hired on or after January 1, 2016. Participants in the Medtronic Core Contribution (MCC) also receive an annual allocation of their salary and bonus and are allowed to determine how to invest their funds among identified fund alternatives. The defined contribution cost associated with the MCC was approximately $ 45 million and $12 million in fiscal years 2017 and 2016 , respectively. |
Leases
Leases | 12 Months Ended |
Apr. 28, 2017 | |
Leases [Abstract] | |
Leases | 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 28, 2017 are: (in millions) Fiscal Year Capitalized Leases Operating Leases 2018 $ 6 $ 215 2019 4 158 2020 4 110 2021 3 70 2022 3 41 Thereafter 8 52 Total minimum lease payments $ 28 $ 646 Less amounts representing interest (5 ) N/A Present value of net minimum lease payments $ 23 N/A Rent expense for all operating leases was $294 million , $269 million , and $195 million in fiscal years 2017 , 2016 , and 2015 , respectively. The increase in fiscal year 2016 rent expense is primarily related to the Covidien acquisition. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Apr. 28, 2017 | |
Other Comprehensive Income (Loss), before Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The following table provides changes in AOCI, net of tax and by component. (in millions) Unrealized Gain (Loss) on Available-for-Sale Securities Cumulative Translation Adjustments Net Change in Retirement Obligations Unrealized Gain (Loss) on Derivative Financial Instruments Total Accumulated Other Comprehensive (Loss) Income April 24, 2015 $ 14 $ (277 ) $ (1,131 ) $ 210 $ (1,184 ) Other comprehensive (loss) income before reclassifications (107 ) (197 ) (141 ) (94 ) (539 ) Reclassifications (14 ) — 75 (206 ) (145 ) Other comprehensive (loss) income (121 ) (197 ) (66 ) (300 ) (684 ) April 29, 2016 $ (107 ) $ (474 ) $ (1,197 ) $ (90 ) $ (1,868 ) Other comprehensive (loss) income before reclassifications 52 (978 ) (17 ) 233 (710 ) Reclassifications (14 ) — 85 (106 ) (35 ) Other comprehensive (loss) income 38 (978 ) 68 127 (745 ) April 28, 2017 $ (69 ) $ (1,452 ) $ (1,129 ) $ 37 $ (2,613 ) The income tax on gains and losses on available-for-sale securities in other comprehensive income before reclassifications during fiscal years 2017 , 2016 , and 2015 was an expense of $41 million , a benefit of $94 million , and an expense of $60 million , respectively. During fiscal years 2017 , 2016 , and 2015 , realized gains and losses on available-for-sale securities reclassified from AOCI were reduced by income taxes of $8 million in fiscal years 2017 and 2016 and $49 million in fiscal year 2015 . When realized, gains and losses on available-for-sale securities reclassified from AOCI are recognized within other expense, net . Refer to Note 6 for additional information. 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. The net change in retirement obligations in other comprehensive income includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost. The income tax on the net change in retirement obligations in other comprehensive income before reclassifications during fiscal years 2017 , 2016 , and 2015 was an expense of $41 million , a benefit of $85 million , and a benefit of $198 million , respectively. During fiscal years 2017 , 2016 , and 2015 , the gains and losses on defined benefit and pension items reclassified from AOCI were reduced by income taxes of $23 million , $39 million , and $25 million , respectively. Refer to Note 17 for additional information. The income tax on unrealized gains and losses on derivative financial instruments in other comprehensive income before reclassifications during fiscal years 2017 , 2016 , and 2015 was an expense of $130 million , a benefit of $51 million , and an expense of $199 million , respectively. During fiscal years 2017 , 2016 , and 2015 , gains and losses on derivative financial instruments reclassified from AOCI were reduced by income taxes of $61 million , $121 million , and $53 million , respectively. When realized, cash flow hedge gains and losses reclassified from AOCI are recognized within other expense, net or cost of products sold, and forward starting interest rate derivative financial instrument gains and losses reclassified from AOCI are recognized within interest expense, net . Note 9 for additional information. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 28, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company and its affiliates are involved in a number of legal actions involving product liability, intellectual property disputes, shareholder related matters, environmental proceedings, income tax disputes, and governmental proceedings and investigations in the United States and around the world, including those described below. With respect to governmental proceedings and investigations, like other companies in our industry, the Company is subject to extensive regulation by national, state and local governmental agencies in the United States and in other jurisdictions in which the Company and its affiliates operate. As a result, interaction with governmental agencies is ongoing. The Company's standard practice is to cooperate with regulators and investigators in responding to inquiries. 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 enforcement agencies or private claimants seek damages, as well as other civil or criminal remedies (including injunctions barring the sale of products that are the subject of the proceeding), that could require significant expenditures, result in lost revenues or limit the Company's ability to conduct business in the applicable jurisdictions. The Company records a liability in the consolidated financial statements on an undiscounted basis for loss contingencies related to legal actions when a loss is known or considered probable and the amount may 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 may 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. 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. At April 28, 2017 and April 29, 2016 , accrued certain litigation charges were approximately $1.1 billion and $1.0 billion , respectively. The ultimate cost to the Company with respect to accrued certain litigation charges could be materially different than the amount of the current estimates and accruals and could have a material adverse impact on the Company’s consolidated earnings, financial position, or cash flows. The Company includes accrued certain litigation charges in other accrued expenses and other liabilities on the consolidated balance sheets. In addition to litigation contingencies, the Company also has certain income tax and guarantee obligations that may potentially result in future charges. While it is not possible to predict the outcome for most of the matters discussed below, the Company believes it is possible that charges associated with these matters could have a material adverse impact on the Company’s consolidated earnings, financial position, or cash flows. Product Liability Matters Sprint Fidelis 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 recognized 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 is unable to reasonably estimate the range of loss, if any, that may result from this matter. INFUSE Litigation The Company estimated law firms representing approximately 6,000 claimants asserted or intended to assert personal injury claims against Medtronic in the U.S. state and federal courts involving the INFUSE bone graft product. As of June 1, 2017, the Company has reached agreements to settle substantially all of these claims, resolving this litigation. The Company's accrued expenses for this matter are included within accrued certain litigation charges in other accrued expenses and other liabilities on the consolidated balance sheets as discussed above. 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, Inc. violated federal racketeering (RICO) law and various state laws, by conspiring with physicians to promote unapproved uses of INFUSE. In September of 2015 the Court granted Medtronic’s motion to dismiss the primary allegations, including the RICO claims, in Humana’s complaint. In April of 2016, the Court denied Humana’s motion to file an amended complaint. The Company has not recognized 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. Pelvic Mesh Litigation The Company, through the acquisition of Covidien, is currently involved in litigation in various state and federal courts against manufacturers of pelvic mesh products alleging personal injuries resulting from the implantation of those products. Two subsidiaries of Covidien supplied pelvic mesh products to one of the manufacturers, C.R. Bard (Bard), named in the litigation. The litigation includes a federal multi-district litigation in the U.S. District Court for the Northern District of West Virginia and cases in various state courts and jurisdictions outside the U.S. Generally, complaints allege design and manufacturing claims, failure to warn, breach of warranty, fraud, violations of state consumer protection laws and loss of consortium claims. In fiscal year 2016, Bard paid the Company $121 million towards the settlement of 11,000 of these claims. In May 2017, the agreement with Bard was amended to extend the terms to apply to up to an additional 5,000 claims. That agreement does not resolve the dispute between the Company and Bard with respect to claims that do not settle, if any. As part of the agreement, the Company and Bard agreed to dismiss without prejudice their pending litigation with respect to Bard’s obligation to defend and indemnify the Company. The Company estimates law firms representing approximately 15,800 claimants have asserted or may assert claims involving products manufactured by Covidien’s subsidiaries. As of June 1, 2017, the Company has reached agreements to settle approximately 12,300 of these claims. The Company's accrued expenses for this matter are included within accrued certain litigation charges in other accrued expenses and other liabilities on the consolidated balance sheets as discussed above. Patent Litigation Ethicon On December 14, 2011, Ethicon filed an action against Covidien in the U.S. District Court for the Southern District of Ohio, alleging patent infringement and seeking monetary damages and injunctive relief. On January 22, 2014, the district court entered summary judgment in Covidien's favor, and the majority of this ruling was affirmed by the Federal Circuit on August 7, 2015. Following appeal, the case was remanded back to the District Court with respect to one patent. On January 21, 2016, Covidien filed a second action in the U.S. District Court for the Southern District of Ohio, seeking a declaration of non-infringement with respect to a second set of patents held by Ethicon. The court consolidated this second action with the remaining patent issues from the first action. Following consolidation of the cases, Ethicon dismissed 6 of the asserted patents, leaving a single asserted patent. In addition to claims of non-infringement, the Company asserts an affirmative defense of invalidity. The case is currently in the discovery stage. The Company has not recognized 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 is unable to reasonably estimate the range of loss, if any, that may result from this matter. Shareholder Related Matters INFUSE On March 12, 2012, Charlotte Kokocinski (Kokocinski) filed a shareholder derivative action against both Medtronic, Inc. and certain of its current and former officers and 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 District Court dismissed the case without prejudice, and Kokocinski subsequently filed an amended complaint. On March 30, 2015, the District Court granted defendants’ motion to dismiss the amended complaint, dismissing the case with prejudice. Kokocinski sought reconsideration of that decision, and, on September 30, 2015, the District Court denied Kokocinski’s request for reconsideration. Kokocinski appealed the District Court’s decision to the U.S. Court of Appeals for the Eighth Circuit. On March 1, 2017, the Eighth Circuit Court of Appeals affirmed the lower Court’s dismissal of the case with prejudice, and on April 11, 2017, the Eighth Circuit rejected Kokocinski’s request for reconsideration. West Virginia Pipe Trades and Phil Pace, on June 27, 2013 and July 3, 2013, respectively, filed putative class action complaints against Medtronic, Inc. 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 and engaged in a scheme to defraud regarding the INFUSE Bone Graft product during the period of December 8, 2010 through August 3, 2011. The matters were consolidated in September, 2013, and in the consolidated complaint plaintiffs alleged a class period of September 28, 2010 through August 3, 2011. On September 30, 2015, the District Court granted defendants’ motion for summary judgment in the consolidated matters. Plaintiffs appealed the dismissal to the U.S. Court of Appeals for the Eighth Circuit, and in December of 2016 the Eighth Circuit Court reversed and remanded the case to the District Court for further proceedings. COVIDIEN ACQUISITION On July 2, 2014, Lewis Merenstein filed a putative shareholder class action in Hennepin County, Minnesota, District Court seeking to enjoin the then-potential acquisition of Covidien. The lawsuit named Medtronic, Inc., Covidien, and each member of the Medtronic, Inc. Board of Directors at the time as defendants, and alleged that the directors breached their fiduciary duties to shareholders with regard to the then-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. In September 2014, the Merenstei n and Steiner matters were consolidated and in December 2014, the plaintiffs filed a preliminary injunction motion seeking to enjoin the Covidien transaction. On December 30, 2014, a hearing was held on plaintiffs’ motion for preliminary injunction and on defendants’ motion to dismiss. On January 2, 2015, the District Court denied the plaintiffs’ motion for preliminary injunction and on January 5, 2015 issued its opinion. On March 20, 2015, the District Court issued its order and opinion granting Medtronic’s motion to dismiss the case. In May of 2015, the plaintiffs filed an appeal, and, in January of 2016, the Minnesota State Court of Appeals affirmed in part, reversed in part, and remanded the case to the District Court for further proceedings. In February of 2016, the Company petitioned the Minnesota Supreme Court to review the decision of the Minnesota State Court of Appeals, and on April 19, 2016 the Minnesota Supreme Court granted the Company’s petition on the issue of whether most of the original claims are properly characterized as direct or derivative under Minnesota law. A decision from the Minnesota Supreme Court is expected in calendar year 2017. HEARTWARE On January 22, 2016, the St. Paul Teachers’ Retirement Fund Association filed a putative class action complaint (the “Complaint”) in the United States District Court for the Southern District of New York against HeartWare on behalf of all persons and entities who purchased or otherwise acquired shares of HeartWare from June 10, 2014 through January 11, 2016 (the “Class Period”). The Complaint was amended on June 29, 2016 and claims HeartWare and one of its executives violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making false and misleading statements about, among other things, HeartWare’s response to a June 2014 U.S. FDA warning letter, the development of the Miniaturized Ventricular Assist Device (MVAD) System and the proposed acquisition of Valtech Cardio Ltd. The Complaint seeks to recover damages on behalf of all purchasers or acquirers of HeartWare’s stock during the Class Period. In August of 2016 the Company acquired HeartWare. The Company has not recognized an expense related to damages in connection with the shareholder related matters, because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company is unable to reasonably estimate the range of loss, if any, that may result from these matters. Environmental Proceedings The Company, through the acquisition of Covidien, is involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. These projects relate to a variety of activities, including removal of solvents, metals and other hazardous substances from soil and groundwater. The ultimate cost of site cleanup and timing of future cash flows is difficult to predict given uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods. The Company is a successor to a company which owned and operated a chemical manufacturing facility in Orrington, Maine from 1967 until 1982, and is responsible for the costs of completing an environmental site investigation as required by the Maine Department of Environmental Protection (MDEP). MDEP served a compliance order on Mallinckrodt LLC and U.S. Surgical Corporation, subsidiaries of Covidien, in December 2008, which included a directive to remove a significant volume of soils at the site. After a hearing on the compliance order before the Maine Board of Environmental Protection (Maine Board) to challenge the terms of the compliance order, the Maine Board modified the MDEP order and issued a final order requiring removal of two landfills, capping of the remaining three landfills, installation of a groundwater extraction system and long-term monitoring of the site and the three remaining landfills. The Company has proceeded with implementation of the investigation and remediation at the site in accordance with the MDEP order as modified by the Maine Board order. The Company has also been involved in a lawsuit filed in the U.S. District Court for the District of Maine by the Natural Resources Defense Council and the Maine People’s Alliance. Plaintiffs sought an injunction requiring Covidien to conduct extensive studies of mercury contamination of the Penobscot River and Bay and options for remediating such contamination, and to perform appropriate remedial activities, if necessary. On July 29, 2002, following a March 2002 trial, the District Court entered an opinion and order which held that conditions in the Penobscot River and Bay may pose an imminent and substantial endangerment and that Covidien was liable for the cost of performing a study of the river and bay. The District Court subsequently appointed an independent study panel to oversee the study and ordered Covidien to pay costs associated with the study. A report issued by the study panel contains recommendations for a variety of potential remedial options which could be implemented individually or in a variety of combinations, and included preliminary cost estimates for a variety of potential remedial options, which the report describes as “very rough estimates of cost,” ranging from $25 million to $235 million . The report indicates that these costs are subject to uncertainties, and that before any remedial option is implemented, further engineering studies and engineering design work are necessary to determine the feasibility of the proposed remedial options. In June of 2014, a trial was held to determine if remediation was necessary and feasible, and on September 2, 2015, the District Court issued an order concluding that further engineering study and engineering design work is appropriate to determine the nature and extent of remediation in the Penobscot River and Bay. In January of 2016, the Court appointed an engineering firm to conduct the next phase of the study. The study is targeted for completion late calendar year 2017. The Company's accrued expenses for environmental proceedings are included within accrued certain litigation charges in other accrued expenses and other liabilities on the consolidated balance sheets as discussed above. Government Matters Medtronic has received subpoenas or document requests from the Attorneys General in Massachusetts, California, Oregon, Illinois, and Washington seeking information regarding sales, marketing, clinical, and other information relating to the INFUSE bone graft product. In the third quarter of fiscal year 2017, the Company accrued expenses in connection with these matters, which are included within accrued certain litigation charges in other accrued expenses and other liabilities on the consolidated balance sheets as discussed above. On May 2, 2011, the U.S. Attorney’s Office for the District of Massachusetts issued a subpoena to ev3, a subsidiary of the Company, requesting production of documents relating to sales and marketing and other issues in connection with several neurovascular products. The matters under investigation relate to activities prior to Covidien's acquisition of ev3 in 2010. ev3 complied as required with the subpoena and cooperated with the investigation. In the third quarter of fiscal year 2016, the Company accrued expenses in connection with this matter, which are included within accrued certain litigation charges in other accrued expenses and other liabilities on the consolidated balance sheets as discussed above. On September 2, 2014, the U.S. Department of Health and Human Services, Office of Inspector General and the U.S. Attorney’s Office for the Northern District of California, issued a subpoena requesting production of documents relating to sales and marketing practices associated with certain of ev3’s peripheral vascular products. The Company has not recognized 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 is unable to reasonably estimate the range of loss, if any, that may result from this matter. Income Taxes In March 2009, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2005 and 2006. Medtronic, Inc. 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. Medtronic, Inc. filed a petition with the U.S. Tax Court on March 21, 2011 objecting to the deficiency. During October and November 2012, Medtronic, Inc. reached resolution with the IRS on various matters, including the deductibility of a settlement payment. Medtronic, Inc. and the IRS agreed to hold one issue, the calculation of amounts eligible for the one-time repatriation holiday, because such specific issue was being addressed by other taxpayers in litigation with the IRS. The remaining unresolved issue for fiscal years 2005 and 2006 relates 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. The U.S. Tax Court proceeding with respect to this issue began on February 3, 2015 and ended on March 12, 2015. On June 9, 2016, the U.S. Tax court issued its opinion with respect to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico for fiscal years 2005 and 2006. The U.S. Tax Court generally rejected the IRS’s position, but also made certain modifications to the Medtronic, Inc. tax returns as filed. During November 2016, Medtronic and the IRS entered into a Stipulation of Settled Issues with the Tax Court which resolved the one-time repatriation holiday as an outstanding issue unless, either party decided to appeal the Tax Court Opinion and a final decision is inconsistent with the U.S. Tax Court Opinion. The U.S. Tax Court entered their final decision on January 25, 2017. On April 21, 2017, the IRS filed their Notice of Appeal to the U.S. Court of Appeals for the 8th Circuit regarding the Tax Court Opinion. A hearing date for the Appeal has not been set. In October 2011, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2007 and 2008. Medtronic, Inc. reached agreement with the IRS on some, but not all matters related to these fiscal years. During the first quarter of fiscal year 2016, the Company finalized its agreement with the IRS on the proposed adjustments associated with the tax effects of the Company's acquisition of Kyphon Inc. (Kyphon). The settlement was consistent with the certain tax adjustment recorded during the fourth quarter of fiscal year 2015. During the first quarter of fiscal year 2017, an expected settlement was reached with the IRS for all outstanding issues for fiscal years 2007 and 2008 except for the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico for the businesses that are the subject of the U.S. Tax Court Case for fiscal years 2005 and 2006. In April 2014, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2009, 2010, and 2011. Medtronic, Inc. reached agreement with the IRS on some but not all matters related to these fiscal years. During the first quarter of fiscal year 2017, an expected settlement was reached with the IRS for all outstanding issues for fiscal years 2009, 2010, and 2011 except for the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico for the businesses that are the subject of the U.S. Tax Court Case for fiscal years 2005 and 2006. During the fourth quarter of fiscal year 2017, an expected settlement was reached with the IRS associated with the tax effects of the Company’s acquisition of PEAK Surgical, Inc. and Salient Surgical Technologies, Inc. However, the IRS continues to audit Medtronic, Inc.'s U.S. federal income tax returns for the fiscal years 2012 through 2014. Covidien and the IRS have concluded and reached agreement on its audit of Covidien’s U.S. federal income tax returns for the 2008 and 2009 tax years. The IRS continues to audit Covidien’s U.S. federal income tax returns for the years 2010 through 2012. The IRS concluded its field examination of certain of Tyco International’s U.S. federal income tax returns for the years 1997 through 2000 and proposed tax adjustments, several of which also affect Covidien’s income tax returns for certain years after 2000. Tyco International appealed certain of the tax adjustments proposed by the IRS and had resolved all but one of the matters associated with the proposed tax adjustments. The IRS asserted that substantially all of Tyco International’s intercompany debt originating during the years 1997 through 2000 should not be treated as debt for U.S. federal income tax purposes, and disallowed interest deductions related to the intercompany debt and certain tax attribute adjustments recognized on Tyco International’s U.S. income tax returns. The Company disagreed with the IRS’s proposed adjustments and, on July 22, 2013, Tyco International filed a petition with the U.S. Tax Court contesting the IRS assessment. On January 15, 2016, Tyco International, as audit managing party under the Tax Sharing Agreement, entered into Stipulations of Settled Issues with the IRS intended to resolve all Federal tax disputes related to this intercompany debt issue for the Tax Sharing Participants for the 1997 - 2000 audit cycle before the U.S. Tax Court. The Stipulations of Settled Issues were contingent upon the IRS Appeals Division applying the same settlement terms to all intercompany debt issues on appeal for subsequent audit cycles (2001 - 2007). On May 17, 2016 the IRS Office of Appeals issued fully executed Forms 870-AD that effectively settled the matters on appeal on the same terms as those set forth in the Stipulations of Settled Issues, and on May 31, 2016 the U.S. Tax Court entered decisions consistent with the Stipulations of Settled Issues. As a result, all aspects of this controversy that were before the U.S. Tax Court and Appeals Division of the IRS have been finally resolved for audit cycles from 1997-2007. See Note 15 for additional discussion of income taxes. Guarantees As a result of the acquisition of Covidien, the Company has guarantee commitments and indemnifications with Tyco International, TE Connectivity Ltd. (TE Connectivity), and Mallinckrodt plc (Mallinckrodt) which relate to certain contingent tax liabilities. On June 29, 2007, Covidien entered into the Tax Sharing Agreement, under which Covidien shares responsibility for certain of its, Tyco International’s and TE Connectivity’s income tax liabilities for periods prior to Covidien’s 2007 separation from Tyco International (2007 separation). Covidien, Tyco International and TE Connectivity share 42 percent, 27 percent, and 31 percent, respectively, of U.S. income tax liabilities that arise from adjustments made by tax authorities to Covidien's, Tyco International’s and TE Connectivity’s U.S. income tax returns, certain income tax liabilities arising from adjustments made by tax authorities to intercompany transactions or similar adjustments, and certain taxes attributable to internal transactions undertaken in anticipation of the 2007 separation. If Tyco International and TE Connectivity default on their obligations to the Company under the Tax Sharing Agreement, the Company would be liable for the entire amount of these liabilities. All costs and expenses associated with the management of these tax liabilities are being shared equally among the parties. In connection with the 2007 separation, all tax liabilities associated with Covidien business became Covidien’s tax liabilities. Following Covidien’s spin-off of its Pharmaceuticals business to Covidien shareholders through a distribution of all the outstanding ordinary shares of Mallinkrodt (2013 separation), Mallinckrodt became the primary obligor to the taxing authorities for the tax liabilities attributable to its subsidiaries, a significant portion of which relate to periods prior to the 2007 separation. However, Covidien remains the sole party subject to the Tax Sharing Agreement. Accordingly, Mallinckrodt does not share in the Company's liability to Tyco International and TE Connectivity, nor in the receivable that the Company has from Tyco International and TE Connectivity. If any party to the Tax Sharing Agreement were to default in its obligation to another party to pay its share of the distribution taxes that arise as a result of no party’s fault, each non-defaulting party would be required to pay, equally with any other non-defaulting party, the amounts in default. In addition, if another party to the Tax Sharing Agreement that is responsible for all or a portion of an income tax liability were to default in its payment of such liability to a taxing authority, the Company could be legally liable under applicable tax law for such liabilities and be required to make additional tax payments. Accordingly, under certain circumstances, the Company may be obligated to pay amounts in excess of the Company’s agreed upon share of Covidien's, Tyco International’s and TE Connectivity’s tax liabilities. The Company has used available information to develop its best estimates for certain assets and liabilities related to periods prior to the 2007 separation, including amounts subject to or impacted by the provisions of the Tax Sharing Agreement. The actual amounts that the Company may be required to ultimately accrue or pay under the Tax Sharing Agreement, however, could vary depending upon the outcome of the unresolved tax matters. Final determination of the balances will be made in subsequent periods, primarily related to certain pre-2007 separation tax liabilities and tax years open for examination. These balances will also be impacted by the filing of final or amended income tax returns in certain jurisdictions where those returns include a combination of Tyco International, Covidien and/or TE Connectivity legal entities for periods prior to the 2007 separation. The resolutions with the U.S. Tax Court and IRS Appeals for fiscal years 1997 through 2007 were finalized during May 2016. However, the Tax Sharing Agreement remains in place with respect to income tax liabilities that are not the subject of such resolution. In conjunction with the 2013 separation, Mallinckrodt assumed the tax liabilities that are attributable to its subsidiaries, and Covidien indemnified Mallinckrodt to the extent that such tax liabilities arising from periods prior to 2013 exceed $200 million , net of certain tax benefits realized. In addition, in connection with the 2013 separation, Covidien entered into certain other guarantee commitments and indemnifications with Mallinckrodt. Except as described above in this note or for certain income tax related matters, the Company has not recognized 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 is unable to reasonably estimate the range of loss, if any, that may result from these matters. In the normal course of business, the Company and/or its affiliates periodically enter into agreements that require one or more of them to indemnify customers or suppliers for specific risks, such as claims for injury or property damage arising out of the Company or its affiliates’ products or the negligence of any of their personnel or claims alleging that any of their products infringe third-party patents or other intellectual property. The Company’s maximum exposure under these indemnification provisions is unable to 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. |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Apr. 28, 2017 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (unaudited) | Quarterly Financial Data (unaudited) (in millions, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year Net sales 2017 $ 7,166 $ 7,345 $ 7,283 $ 7,916 $ 29,710 2016 7,274 7,058 6,934 7,567 28,833 Gross profit 2017 $ 4,905 $ 5,019 $ 5,015 $ 5,480 $ 20,419 2016 4,818 4,876 4,793 5,204 19,691 Net income 2017 $ 929 $ 1,111 $ 820 $ 1,164 $ 4,024 2016 820 520 1,095 1,104 3,538 Net income attributable to Medtronic 2017 $ 929 $ 1,115 $ 821 $ 1,163 $ 4,028 2016 820 520 1,095 1,104 3,538 Basic earnings per share 2017 $ 0.67 $ 0.81 $ 0.60 $ 0.85 2.92 2016 0.58 0.37 0.78 0.79 2.51 Diluted earnings per share 2017 $ 0.66 $ 0.80 $ 0.59 $ 0.84 2.89 2016 0.57 0.36 0.77 0.78 2.48 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. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Apr. 28, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information The Company’s management evaluates performance and allocates resources based on income before interest expense, net, the provision for income taxes and amortization of intangible assets, not including centralized distribution costs and corporate charges, as presented in the table below. The accounting policies of the reportable segments are the same as those described in Note 1 . The financial information that is regularly reviewed by the Company's chief operating decision maker to assess performance and allocate resources changed during fiscal year 2017 . As a result, the Company has revised the disclosure for prior periods to align with current presentation. The Company’s Cardiac and Vascular Group consists of three divisions: Cardiac Rhythm & Heart Failure, Coronary & Structural Heart, and Aortic & Peripheral Vascular. The primary products sold by this operating segment include products for cardiac rhythm disorders and cardiovascular disease, as well as services to diagnose, treat, and manage heart and vascular-related disorders and diseases. The products produced by this operating segment require highly-skilled, technical manufacturing processes and are distributed through direct sales representatives in the U.S. and through direct sales representatives and indirect distributors outside of the U.S. Further, the primary customers of this operating segment are surgeons and specialists and the regulatory approval process for the Cardiac and Vascular Group is similar across all divisions. The Company’s Minimally Invasive Therapies Group consists of two divisions: Surgical Solutions and Patient Monitoring & Recovery. The primary products sold by this operating segment include those which enhance patient outcomes through minimally invasive solutions. These products include those for advanced and general surgical care and patient monitoring, patient care, renal care, and airway and ventilation. Further, the regulatory approval process for the Minimally Invasive Therapies Group is similar across all divisions. In the first quarter of fiscal year 2017, the Company realigned the divisions within the Restorative Therapies Group. The Company’s Restorative Therapies Group consists of four divisions: Spine, Brain Therapies, Specialty Therapies, and Pain Therapies. The primary customers of this operating segment include spinal surgeons, neurosurgeons, and pain specialists. The products sold by this operating segment are distributed through direct sales representatives in the U.S. and through direct sales representatives and indirect distributors outside of the U.S. Further, the regulatory approval process for the Restorative Therapies Group is similar across all divisions. The primary products sold by the Company’s Diabetes Group include those for diabetes management, and the regulatory approval process for the Diabetes Group is similar across all divisions. Net sales of the Company’s reportable segments include end-customer revenues from the sale of products each reportable segment develops and manufactures or distributes. Segment disclosures are on a performance basis consistent with internal management reporting. Certain items are at corporate and centralized and are not allocated to the segments. Net sales and earnings before other adjustments by reportable segment are as follows: Fiscal Year (in millions) 2017 2016 2015 Cardiac and Vascular Group $ 10,498 $ 10,196 $ 9,361 Minimally Invasive Therapies Group 9,919 9,563 2,387 Restorative Therapies Group 7,366 7,210 6,751 Diabetes Group 1,927 1,864 1,762 Total $ 29,710 $ 28,833 $ 20,261 Fiscal Year (in millions) 2017 2016 2015 Cardiac and Vascular Group $ 4,134 $ 3,986 $ 3,836 Minimally Invasive Therapies Group 3,434 3,373 775 Restorative Therapies Group 2,868 2,671 2,445 Diabetes Group 690 667 663 Reportable segments' EBITA before other adjustments (1) 11,126 10,697 7,719 Impact of inventory step-up (38 ) (226 ) (623 ) Impact of product technology upgrade commitment — — (74 ) Special charge (gain), net (100 ) (70 ) 38 Restructuring charges, net (2) (373 ) (299 ) (252 ) Certain litigation charges (300 ) (26 ) (42 ) Acquisition-related items (2) (230 ) (283 ) (550 ) Amortization of intangible assets (1,980 ) (1,931 ) (733 ) Centralized distribution costs (1,543 ) (1,177 ) (794 ) Interest expense, net (728 ) (955 ) (280 ) Corporate (1,232 ) (1,394 ) (923 ) Income before provision for income taxes $ 4,602 $ 4,336 $ 3,486 (1) Represents earnings by segment before interest expense, net , amortization of intangible assets, corporate charges, and centralized distribution costs. (2) Restructuring charges, net and acquisition-related items within this table include the impact of amounts recognized within cost of products sold in the consolidated statements of income. The following table presents the Company’s assets by reportable segment: (in millions) April 28, 2017 April 29, 2016 Cardiac and Vascular Group $ 15,192 $ 13,563 Minimally Invasive Therapies Group (1) 49,249 52,227 Restorative Therapies Group 15,441 14,564 Diabetes Group 2,641 2,592 Total assets of reportable segments 82,523 82,946 Corporate 17,293 16,698 Total Assets $ 99,816 $ 99,644 (1) Assets of $6.3 billion classified as held for sale were included within Minimally Invasive Therapies Group at April 28, 2017 . Geographic Information The following table presents net sales to external customers and property, plant, and equipment, net by geographic region: Net sales to external customers Property, plant, and equipment, net (in millions) 2017 2016 2015 April 28, 2017 April 29, 2016 Americas (1) $ 17,939 $ 17,578 $ 12,125 $ 3,270 $ 3,728 EMEA (2) 6,739 6,700 5,064 709 708 Asia Pacific 3,443 3,060 2,059 192 220 Greater China 1,589 1,495 1,013 190 185 Consolidated $ 29,710 $ 28,833 $ 20,261 $ 4,361 $ 4,841 (1) The U.S., which is included in the Americas, had net sales to external customers of $16.7 billion , $ 16.4 billion , and $ 11.3 billion in fiscal years 2017 , 2016 , and 2015 , respectively. Property, plant, and equipment, net includes $2.5 billion and $3.3 billion in the U.S. in fiscal years 2017 and 2016 , respectively. (2) EMEA consists of the following regions: Europe, Middle East, and Africa. Sales to Ireland were insignificant during all periods presented. Property, plant, and equipment, net includes $171 million and $169 million in Ireland in fiscal years 2017 and 2016 , respectively. No single customer represented over 10 percent of the Company’s consolidated net sales in fiscal years 2017 , 2016 , or 2015 . |
Guarantor Financial Information
Guarantor Financial Information | 12 Months Ended |
Apr. 28, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Guarantor Financial Information | Guarantor Financial Information On January 26, 2015, Medtronic plc and Medtronic Global Holdings S.C.A. (Medtronic Luxco), a wholly-owned subsidiary guarantor, each provided a full and unconditional guarantee of the obligations of Medtronic, Inc. under the Medtronic 2015 Senior Notes (Medtronic Senior Notes). In addition, Medtronic plc and Medtronic Luxco each provided a full and unconditional guarantee of the obligations of CIFSA, assumed as part of the Covidien acquisition, under the CIFSA Senior Notes. The guarantees of the CIFSA Senior Notes were in addition to the guarantees of the CIFSA Senior Notes by acquired Covidien holding companies Covidien Ltd. (formerly known as Covidien plc) and Covidien Group Holdings Ltd. (formerly known as Covidien Ltd.), both of which remain wholly-owned guarantors of the CIFSA Senior Notes. Medtronic Luxco issued two tranches of Senior Notes (Medtronic Luxco Senior Notes) in March 2017. Effective March 28, 2017, Medtronic plc and Medtronic, Inc. each provided a full and unconditional guarantee of the obligations of Medtronic Luxco under the Medtronic Luxco 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 Guarantees of Medtronic Luxco Senior Notes • Parent Company Guarantor - Medtronic plc • Subsidiary Issuer - Medtronic Luxco • Subsidiary Guarantor - 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. (CIFSA Subsidiary Guarantors) The following presents the Company’s consolidating statements of comprehensive income and condensed consolidating statements of cash flows as of and for the fiscal years ended April 28, 2017 , April 29, 2016 , and April 24, 2015 , and condensed consolidating balance sheets at April 28, 2017 and April 29, 2016 . The guarantees provided by the Parent Company Guarantor and Subsidiary Guarantors are joint and several. Condensed consolidating financial information for Medtronic plc, Medtronic Luxco, Medtronic, Inc., CIFSA, and CIFSA Subsidiary Guarantors, on a stand-alone basis, is presented using the equity method of accounting for subsidiaries. During fiscal year 2017, 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. The Company made revisions to its consolidating statements of comprehensive income of the guarantees of the Medtronic Senior Notes and CIFSA Senior notes as previously presented in Note 19 in the Company’s Annual Report on 10-K for fiscal year 2016 due to an incorrect presentation of the equity in net (income) loss of subsidiaries balances for the fiscal year ended April 29, 2016. In the consolidating statements of comprehensive income of the guarantees of the Medtronic Senior Notes, the $7.1 billion revision resulted in additional income reported in the equity in net (income) loss of subsidiaries line item in the Medtronic, Inc. column. In the consolidating statements of comprehensive income of the guarantees of the CIFSA Senior Notes, the $7.1 billion revision resulted in reduced income reported in the equity in net (income) loss of subsidiaries line item in the CIFSA column. There is no impact to the consolidated financial statements of Medtronic plc as previously filed in the 2016 Annual Report on Form 10-K or Quarterly Reports on Form 10-Q. The Company made revisions to its condensed consolidating balance sheets of the guarantees of the Medtronic Senior Notes and CIFSA Senior Notes as previously presented in Note 19 in the Company’s Annual Report on Form 10-K for fiscal year 2016 primarily due to an income statement error recognized in the second quarter of fiscal year 2016, resulting in an incorrect presentation of the investment in subsidiaries balances. In the condensed consolidating balance sheet of the guarantees of the Medtronic Senior Notes, the $5.1 billion revision increased the line items investment in subsidiaries and total equity in the Medtronic, Inc. column. In the condensed consolidating balance sheet of the guarantees of the CIFSA Senior Notes, the $5.1 billion revision decreased the line items investment in subsidiaries and total equity in the CIFSA column. There is no impact to the consolidated financial statements of Medtronic plc as previously filed in the 2016 Annual Report on Form 10-K or Quarterly Reports on Form 10-Q. The Company made revisions to the condensed consolidating balance sheets of the guarantees of the Medtronic Senior Notes and CIFSA Notes as previously presented in Note 19 in the Company’s Annual Report on Form 10-K for fiscal year 2016 due to an incorrect presentation of intercompany capital contributions. The $20.5 billion revision decreased the investment in subsidiaries and intercompany payable balances in the Medtronic plc column and decreased the investment in subsidiaries and total equity balances in the Medtronic Luxco and CIFSA Subsidiary Guarantors column in the condensed consolidating balance sheets of the guarantees of the Medtronic Senior Notes and CIFSA Senior Notes, respectively, decreased the intercompany receivable and total equity balances in Medtronic, Inc. column in the condensed consolidating balance sheets of the guarantees of the Medtronic Senior Notes, and decreased the intercompany receivable and total equity balances in the Subsidiary Non-Guarantors column. There is no impact to the consolidated financial statements of Medtronic plc as previously filed in the 2016 Annual Report on Form 10-K or Quarterly Reports on Form 10-Q. Consolidating Statement of Comprehensive Income Fiscal Year Ended April 28, 2017 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ 1,296 $ — $ 29,708 $ (1,294 ) $ 29,710 Costs and expenses: Cost of products sold — 932 — 9,676 (1,317 ) 9,291 Research and development expense — 636 — 1,557 — 2,193 Selling, general, and administrative expense 12 1,163 — 8,536 — 9,711 Special charge (gain), net — 100 — — — 100 Restructuring charges, net — 114 — 249 — 363 Certain litigation charges — — — 300 — 300 Acquisition-related items — 133 — 87 — 220 Amortization of intangible assets — 11 — 1,969 — 1,980 Other expense (income), net 18 (2,954 ) — 3,158 — 222 Operating (loss) profit (30 ) 1,161 — 4,176 23 5,330 Interest income — (250 ) (649 ) (1,065 ) 1,598 (366 ) Interest expense 113 1,652 62 865 (1,598 ) 1,094 Interest expense (income), net 113 1,402 (587 ) (200 ) — 728 Equity in net (income) loss of subsidiaries (4,163 ) (2,484 ) (3,576 ) — 10,223 — Income (loss) from operations before income taxes 4,020 2,243 4,163 4,376 (10,200 ) 4,602 Provision (benefit) for income taxes (8 ) (1 ) — 587 — 578 Net income 4,028 2,244 4,163 3,789 (10,200 ) 4,024 Net loss attributable to noncontrolling interests — — — 4 — 4 Net income attributable to Medtronic 4,028 2,244 4,163 3,793 (10,200 ) 4,028 Other comprehensive (loss) income, net of tax (745 ) 111 (745 ) (928 ) 1,563 (744 ) Other comprehensive loss attributable to non-controlling interests — — — 3 — 3 Total comprehensive income (loss) attributable to Medtronic $ 3,283 $ 2,355 $ 3,418 $ 2,864 $ (8,637 ) $ 3,283 Consolidating Statement of Comprehensive Income Fiscal Year Ended April 29, 2016 Medtronic Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ 1,411 $ — $ 28,832 $ (1,410 ) $ 28,833 Costs and expenses: Cost of products sold — 991 — 9,561 (1,410 ) 9,142 Research and development expense — 627 — 1,597 — 2,224 Selling, general, and administrative expense 10 991 — 8,468 — 9,469 Special charge (gain), net — 70 — — — 70 Restructuring charges, net — 17 — 273 — 290 Certain litigation charges — — — 26 — 26 Acquisition-related items — 135 — 148 — 283 Amortization of intangible assets — 12 — 1,919 — 1,931 Other expense (income), net 112 (2,329 ) — 2,324 — 107 Operating (loss) profit (122 ) 897 — 4,516 — 5,291 Interest income — (237 ) (706 ) (448 ) 960 (431 ) Interest expense 25 1,906 10 405 (960 ) 1,386 Interest expense (income), net 25 1,669 (696 ) (43 ) — 955 Equity in net (income) loss of subsidiaries (3,676 ) (2,447 ) (2,980 ) — 9,103 — Income (loss) from operations before income taxes 3,529 1,675 3,676 4,559 (9,103 ) 4,336 Provision (benefit) for income taxes (9 ) (96 ) — 903 — 798 Net income 3,538 1,771 3,676 3,656 (9,103 ) 3,538 Other comprehensive (loss) income, net of tax (684 ) (493 ) (684 ) (673 ) 1,850 (684 ) Total comprehensive income (loss) $ 2,854 $ 1,278 $ 2,992 $ 2,983 $ (7,253 ) $ 2,854 Consolidating Statement of Comprehensive Income Fiscal Year Ended April 24, 2015 Medtronic Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ 1,261 $ — $ 20,261 $ (1,261 ) $ 20,261 Costs and expenses: Cost of products sold — 895 — 6,659 (1,245 ) 6,309 Research and development expense — 552 — 1,088 — 1,640 Selling, general, and administrative expense 1 857 — 6,046 — 6,904 Special charge (gain), net — 100 — (138 ) — (38 ) Restructuring charges, net — 7 — 230 — 237 Certain litigation charges — — — 42 — 42 Acquisition-related items — 312 — 238 — 550 Amortization of intangible assets — 11 — 722 — 733 Other expense (income), net 103 (1,618 ) — 1,633 — 118 Operating (loss) profit (104 ) 145 — 3,741 (16 ) 3,766 Interest income — (56 ) (170 ) (387 ) 227 (386 ) Interest expense — 762 — 131 (227 ) 666 Interest expense (income), net — 706 (170 ) (256 ) — 280 Equity in net (income) loss of subsidiaries (2,790 ) (5,500 ) (2,620 ) — 10,910 — Income (loss) from operations before income taxes 2,686 4,939 2,790 3,997 (10,926 ) 3,486 Provision (benefit) for income taxes 11 (44 ) — 844 — 811 Net income 2,675 4,983 2,790 3,153 (10,926 ) 2,675 Other comprehensive income (loss), net of tax (587 ) (542 ) (587 ) (232 ) 1,361 (587 ) Total comprehensive income (loss) $ 2,088 $ 4,441 $ 2,203 $ 2,921 $ (9,565 ) $ 2,088 Condensed Consolidating Balance Sheet April 28, 2017 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total ASSETS Current assets: Cash and cash equivalents $ — $ 45 $ 5 $ 4,917 $ — $ 4,967 Investments — — — 8,741 — 8,741 Accounts receivable, net — — — 5,591 — 5,591 Inventories, net — 155 — 3,361 (178 ) 3,338 Intercompany receivable 63 — — 12,618 (12,681 ) — Prepaid expenses and other current assets 10 227 — 1,628 — 1,865 Current assets held for sale — — — 371 — 371 Total current assets 73 427 5 37,227 (12,859 ) 24,873 Property, plant and equipment, net — 1,311 — 3,050 — 4,361 Goodwill — — — 38,515 — 38,515 Other intangible assets, net — 20 — 23,387 — 23,407 Tax assets — 727 — 782 — 1,509 Investment in subsidiaries 55,833 71,931 52,618 — (180,382 ) — Intercompany loans receivable 3,000 12,162 16,114 32,774 (64,050 ) — Other assets — 434 — 798 — 1,232 Noncurrent assets held for sale — — — 5,919 — 5,919 Total assets $ 58,906 $ 87,012 $ 68,737 $ 142,452 $ (257,291 ) $ 99,816 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ 5,000 $ 901 $ 1,619 $ — $ 7,520 Accounts payable — 304 — 1,427 — 1,731 Intercompany payable 12 12,669 — — (12,681 ) — Accrued compensation 9 734 — 1,117 — 1,860 Accrued income taxes 13 — — 620 — 633 Other accrued expenses — 352 4 2,086 — 2,442 Current liabilities held for sale — — — 34 — 34 Total current liabilities 34 19,059 905 6,903 (12,681 ) 14,220 Long-term debt — 21,782 1,842 2,297 — 25,921 Accrued compensation and retirement benefits — 1,120 — 521 — 1,641 Accrued income taxes 10 1,658 — 737 — 2,405 Intercompany loans payable 8,568 13,151 17,160 25,171 (64,050 ) — Deferred tax liabilities — — — 2,978 — 2,978 Other liabilities — 153 — 1,362 — 1,515 Noncurrent liabilities held for sale — — — 720 — 720 Total liabilities 8,612 56,923 19,907 40,689 (76,731 ) 49,400 Shareholders’ equity 50,294 30,089 48,830 101,641 (180,560 ) 50,294 Noncontrolling interests — — — 122 — 122 Total equity 50,294 30,089 48,830 101,763 (180,560 ) 50,416 Total liabilities and equity $ 58,906 $ 87,012 $ 68,737 $ 142,452 $ (257,291 ) $ 99,816 Condensed Consolidating Balance Sheet April 29, 2016 Medtronic Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total ASSETS Current assets: Cash and cash equivalents $ — $ 55 $ — $ 2,821 $ — $ 2,876 Investments — — — 9,758 — 9,758 Accounts receivable, net — — — 5,562 — 5,562 Inventories, net — 162 — 3,511 (200 ) 3,473 Intercompany receivable 403 141,368 — 162,278 (304,049 ) — Prepaid expenses and other current assets 24 271 — 1,636 — 1,931 Total current assets 427 141,856 — 185,566 (304,249 ) 23,600 Property, plant and equipment, net — 1,139 — 3,702 — 4,841 Goodwill — — — 41,500 — 41,500 Other intangible assets, net — 31 — 26,868 — 26,899 Tax assets — 690 — 693 — 1,383 Investment in subsidiaries 52,608 68,903 49,698 — (171,209 ) — Intercompany loans receivable 3,000 8,884 10,203 18,140 (40,227 ) — Other assets — 506 — 915 — 1,421 Total assets $ 56,035 $ 222,009 $ 59,901 $ 277,384 $ (515,685 ) $ 99,644 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ 500 $ — $ 493 $ — $ 993 Accounts payable — 288 — 1,421 — 1,709 Intercompany payable — 151,687 — 152,362 (304,049 ) — Accrued compensation 32 616 — 1,064 — 1,712 Accrued income taxes 11 — — 555 — 566 Other accrued expenses 1 243 — 1,941 — 2,185 Total current liabilities 44 153,334 — 157,836 (304,049 ) 7,165 Long-term debt — 26,646 — 3,463 — 30,109 Accrued compensation and retirement benefits — 1,258 — 501 — 1,759 Accrued income taxes 10 1,422 — 1,471 — 2,903 Intercompany loans payable 3,918 10,128 14,297 11,884 (40,227 ) — Deferred tax liabilities — — — 3,729 — 3,729 Other liabilities — 202 — 1,714 — 1,916 Total liabilities 3,972 192,990 14,297 180,598 (344,276 ) 47,581 Total equity 52,063 29,019 45,604 96,786 (171,409 ) 52,063 Total liabilities and equity $ 56,035 $ 222,009 $ 59,901 $ 277,384 $ (515,685 ) $ 99,644 Condensed Consolidating Statement of Cash Flows Fiscal Year Ended April 28, 2017 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by operating activities $ 842 $ 1,902 $ 302 $ 4,721 $ (887 ) $ 6,880 Investing Activities: Acquisitions, net of cash acquired — (940 ) — (384 ) — (1,324 ) Additions to property, plant, and equipment — (369 ) — (885 ) — (1,254 ) Purchases of investments — — — (4,533 ) 162 (4,371 ) Sales and maturities of investments — 210 — 5,308 (162 ) 5,356 Net (increase) decrease in intercompany loans receivable — (3,278 ) (5,911 ) (4,624 ) 13,813 — Capital contributions paid — (248 ) — — 248 — Other investing activities, net — — — 22 — 22 Net cash (used in) provided by investing activities — (4,625 ) (5,911 ) (5,096 ) 14,061 (1,571 ) Financing Activities: Acquisition-related contingent consideration — — — (69 ) — (69 ) Change in current debt obligations, net — — 901 5 — 906 Repayment of short-term borrowings (maturities greater than 90 days) — — — (2 ) — (2 ) Proceeds from short-term borrowings (maturities greater than 90 days) — — — 12 — 12 Issuance of long-term debt — 150 1,850 140 — 2,140 Payments on long-term debt — (500 ) — (363 ) — (863 ) Dividends to shareholders (2,376 ) — — — — (2,376 ) Issuance of ordinary shares 428 — — — — 428 Repurchase of ordinary shares (3,544 ) — — — — (3,544 ) Net intercompany loan borrowings (repayments) 4,650 3,023 2,863 3,277 (13,813 ) — Intercompany dividends paid — — — (887 ) 887 — Capital contributions received — — — 248 (248 ) — Other financing activities — 40 — 45 — 85 Net cash (used in) provided by financing activities (842 ) 2,713 5,614 2,406 (13,174 ) (3,283 ) Effect of exchange rate changes on cash and cash equivalents — — — 65 — 65 Net change in cash and cash equivalents — (10 ) 5 2,096 — 2,091 Cash and cash equivalents at beginning of period — 55 — 2,821 — 2,876 Cash and cash equivalents at end of period $ — $ 45 $ 5 $ 4,917 $ — $ 4,967 Condensed Consolidating Statement of Cash Flows Fiscal Year Ended April 29, 2016 Medtronic Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by operating activities $ 297 $ 402 $ 696 $ 4,635 $ (812 ) $ 5,218 Investing Activities: Acquisitions, net of cash acquired — (526 ) — (687 ) — (1,213 ) Additions to property, plant, and equipment — (334 ) — (712 ) — (1,046 ) Purchases of investments — — — (5,406 ) — (5,406 ) Sales and maturities of investments — — — 9,924 — 9,924 Net (increase) decrease in intercompany loans receivable — (2,368 ) (203 ) (7,921 ) 10,492 — Capital contributions paid — (11 ) (4,959 ) (4,900 ) 9,870 — Other investing activities, net — — — (14 ) — (14 ) Net cash (used in) provided by investing activities — (3,239 ) (5,162 ) (9,716 ) 20,362 2,245 Financing Activities: Acquisition-related contingent consideration — — — (22 ) — (22 ) Change in current debt obligations, net — — — 7 — 7 Repayment of short-term borrowings (maturities greater than 90 days) — — (139 ) — — (139 ) Proceeds from short-term borrowings (maturities greater than 90 days) — — 139 — — 139 Payments on long-term debt — (2,988 ) — (2,144 ) — (5,132 ) Dividends to shareholders (2,139 ) — — — — (2,139 ) Issuance of ordinary shares 491 — — — — 491 Repurchase of ordinary shares (2,830 ) — — — — (2,830 ) Net intercompany loan borrowings (repayments) 3,918 (91 ) 4,296 2,369 (10,492 ) — Intercompany dividends paid — — — (812 ) 812 — Capital contributions received — 4,900 — 4,970 (9,870 ) — Other financing activities — — — 82 — 82 Net cash (used in) provided by financing activities (560 ) 1,821 4,296 4,450 (19,550 ) (9,543 ) Effect of exchange rate changes on cash and cash equivalents — — — 113 — 113 Net change in cash and cash equivalents (263 ) (1,016 ) (170 ) (518 ) — (1,967 ) Cash and cash equivalents at beginning of period 263 1,071 170 3,339 — 4,843 Cash and cash equivalents at end of period $ — $ 55 $ — $ 2,821 $ — $ 2,876 Condensed Consolidating Statement of Cash Flows Fiscal Year Ended April 24, 2015 Medtronic Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by operating activities $ 26 $ 1,479 $ 170 $ 3,640 $ (413 ) $ 4,902 Investing Activities: Acquisitions, net of cash acquired (9,700 ) (65 ) — (5,119 ) — (14,884 ) Additions to property, plant, and equipment — (187 ) — (384 ) — (571 ) Purchases of investments — — — (7,582 ) — (7,582 ) Sales and maturities of investments — — — 5,890 — 5,890 Net (increase) decrease in intercompany loans receivable — (16,996 ) — 53 16,943 — Other investing activities, net — — — 89 — 89 Net cash (used in) provided by investing activities (9,700 ) (17,248 ) — (7,053 ) 16,943 (17,058 ) Financing Activities: Acquisition-related contingent consideration — — — (85 ) — (85 ) Change in current debt obligations, net — — — (1 ) — (1 ) 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 — 19,942 — — — 19,942 Payments on long-term debt — (1,268 ) — — — (1,268 ) Dividends to shareholders (435 ) (902 ) — — — (1,337 ) Issuance of ordinary shares 172 477 — — — 649 Repurchase of ordinary shares (300 ) (1,620 ) — — — (1,920 ) Net intercompany loan borrowings (repayments) 10,500 (53 ) — 6,496 (16,943 ) — Intercompany dividends paid — — — (413 ) 413 — Other financing activities — — — (31 ) — (31 ) Net cash (used in) provided by financing activities 9,937 16,576 — 5,966 (16,530 ) 15,949 Effect of exchange rate changes on cash and cash equivalents — — — (353 ) — (353 ) Net change in cash and cash equivalents 263 807 170 2,200 — 3,440 Cash and cash equivalents at beginning of period — 264 — 1,139 — 1,403 Cash and cash equivalents at end of period $ 263 $ 1,071 $ 170 $ 3,339 $ — $ 4,843 Consolidating Statement of Comprehensive Income Fiscal Year Ended April 28, 2017 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ — $ — $ 29,710 $ — $ 29,710 Costs and expenses: Cost of products sold — — — 9,291 — 9,291 Research and development expense — — — 2,193 — 2,193 Selling, general, and administrative expense 12 1 2 9,696 — 9,711 Special charge (gain), net — — — 100 — 100 Restructuring charges, net — — — 363 — 363 Certain litigation charges — — — 300 — 300 Acquisition-related items — — — 220 — 220 Amortization of intangible assets — — — 1,980 — 1,980 Other expense (income), net 18 1 4 199 — 222 Operating (loss) profit (30 ) (2 ) (6 ) 5,368 — 5,330 Interest income — (82 ) (656 ) (433 ) 805 (366 ) Interest expense 113 104 62 1,620 (805 ) 1,094 Interest expense (income), net 113 22 (594 ) 1,187 — 728 Equity in net (income) loss of subsidiaries (4,163 ) (2,329 ) (3,575 ) — 10,067 — Income (loss) from operations before income taxes 4,020 2,305 4,163 4,181 (10,067 ) 4,602 Provision (benefit) for income taxes (8 ) — — 586 — 578 Net income 4,028 2,305 4,163 3,595 (10,067 ) 4,024 Net loss attributable to noncontrolling interests — — — 4 — 4 Net income attributable to Medtronic 4,028 2,305 4,163 3,599 (10,067 ) 4,028 Other comprehensive (loss) income, net of tax (745 ) (84 ) (745 ) (744 ) 1,574 (744 ) Other comprehensive loss attributable to non-controlling interests — — — 3 — 3 Total comprehensive income (loss) attributable to Medtronic $ 3,283 $ 2,221 $ 3,418 $ 2,854 $ (8,493 ) $ 3,283 Consolidating Statement of Comprehensive Income Fiscal Year Ended April 29, 2016 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ — $ — $ 28,833 $ — $ 28,833 Costs and expenses: Cost of products sold — — — 9,142 — 9,142 Research and development expense — — — 2,224 — 2,224 Selling, general, and administrative expense 10 1 3 9,455 — 9,469 Special charge (gain), net — — — 70 — 70 Restructuring charges, net — — — 290 — 290 Certain litigation charges — — — 26 — 26 Acquisition-related items — — — 283 — 283 Amortization of intangible assets — — — 1,931 — 1,931 Other expense (income), net 112 1 (18 ) 12 — 107 Operating (loss) profit (122 ) (2 ) 15 5,400 — 5,291 Interest income — (434 ) (710 ) (464 ) 1,177 (431 ) Interest expense 25 138 10 2,390 (1,177 ) 1,386 Interest expense (income), net 25 (296 ) (700 ) 1,926 — 955 Equity in net (income) loss of subsidiaries (3,676 ) (2,043 ) (2,961 ) — 8,680 — Income (loss) from operations before income taxes 3,529 2,337 3,676 3,474 (8,680 ) 4,336 Provision (benefit) for income taxes (9 ) — — 807 — 798 Net income 3,538 2,337 3,676 2,667 (8,680 ) 3,538 Other comprehensive (loss) income, net of tax (684 ) (102 ) (684 ) (684 ) 1,470 (684 ) Total comprehensive income (loss) $ 2,854 $ 2,235 $ 2,992 $ 1,983 $ (7,210 ) $ 2,854 Consolidating Statement of Comprehensive Income Fiscal Year Ended April 24, 2015 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ — $ — $ 20,261 $ — $ 20,261 Costs and expenses: Cost of products sold — — — 6,309 — 6,309 Research and development expense — — — 1,640 — 1,640 Selling, general, and administrative expense 1 — 21 6,882 — 6,904 Special charge (gain), net — — — (38 ) — (38 ) Restructuring charges, net — — — 237 — 237 Certain litigation charges — — — 42 — 42 Acquisition-related items — — — 550 — 550 Amortization of intangible assets — — — 733 — 733 Other expense (income), net 103 — 26 (11 ) — 118 Operating (loss) profit (104 ) — (47 ) 3,917 — 3,766 Interest income — (149 ) (170 ) (386 ) 319 (386 ) Interest expense — 29 — 956 (319 ) 666 Interest expense (income), net — (120 ) (170 ) 570 — 280 Equity in net (income) loss of subsidiaries (2,790 ) 1,085 (2,667 ) — 4,372 — Income (loss) from operations before income taxes 2,686 (965 ) 2,790 3,347 (4,372 ) 3,486 Provision (benefit) for income taxes 11 — — 800 — 811 Net income 2,675 (965 ) 2,790 2,547 (4,372 ) 2,675 Other comprehensive (loss) income, net of tax (587 ) 200 (587 ) (587 ) 974 (587 ) Total comprehensive income (loss) $ 2,088 $ (765 ) $ 2,203 $ 1,960 $ (3,398 ) $ 2,088 Condensed Consolidating Balance Sheet April 28, 2017 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total ASSETS Current assets: Cash and cash equivalents $ — $ 33 $ 5 $ 4,929 $ — $ 4,967 Investments — — — 8,741 — 8,741 Accounts receivable, net — — — 5,591 — 5,591 Inventories, net — — — 3,338 — 3,338 Intercompany receivable 63 — 60 12 (135 ) — Prepaid expenses and other current assets 10 — — 1,855 — 1,865 Current assets held for sale — — — 371 — 371 Total current assets 73 33 65 24,837 (135 ) 24,873 Property, plant and equipment, net — — — 4,361 — 4,361 Goodwill — — — 38,515 — 38,515 Other intangible assets, net — — — 23,407 — 23,407 Tax assets — — — 1,509 — 1,509 Investment in subsidiaries 55,833 31,033 51,294 — (138,160 ) — Intercompany loans receivable 3,000 2,978 17,383 17,260 (40,621 ) — Other assets — — — 1,232 — 1,232 Noncurrent assets held for sale — — — 5,919 — 5,919 Total assets $ 58,906 $ 34,044 $ 68,742 $ 117,040 $ (178,916 ) $ 99,816 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ 1,176 $ 901 $ 5,443 $ — $ 7,520 Accounts payable — — — 1,731 — 1,731 Intercompany payable 12 — — 123 (135 ) — Accrued compensation 9 — — 1,851 — 1,860 Accrued income taxes 13 — — 620 — 633 Other accrued expenses — 23 8 2,411 — 2,442 Current liabilities held for sale — — — 34 — 34 Total current liabilities 34 1,199 909 12,213 (135 ) 14,220 Long-term debt — 2,133 1,842 21,946 — 25,921 Accrued compensation and retirement benefits — — — 1,641 — 1,641 Accrued income taxes 10 — — 2,395 — 2,405 Intercompany loans payable 8,568 1,369 17,161 13,523 (40,621 ) — Deferred tax liabilities — — — 2,978 — 2,978 Other liabilities — — — 1,515 — 1,515 Noncurrent liabilities held for sale — — — 720 — 720 Total liabilities 8,612 4,701 19,912 56,931 (40,756 ) 49,400 Shareholders’ equity 50,294 29,343 48,830 59,987 (138,160 ) 50,294 Noncontrolling interests — — — 122 — 122 Total equity 50,294 29,343 48,830 60,109 (138,160 ) 50,416 Total liabilities and equity $ 58,906 $ 34,044 $ 68,742 $ 117,040 $ (178,916 ) $ 99,816 Condensed Consolidating Balance Sheet April 29, 2016 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total ASSETS Current assets: Cash and cash equivalents $ — $ 208 $ — $ 2,668 $ — $ 2,876 Investments — — — 9,758 — 9,758 Accounts receivable, net — — — 5,562 — 5,562 Inventories, net — — — 3,473 — 3,473 Intercompany receivable 403 — 61 — (464 ) — Prepaid expenses and other current assets 24 — — 1,907 — 1,931 Total current assets 427 208 61 23,368 (464 ) 23,600 Property, plant and equipment, net — — 1 4,840 — 4,841 Goodwill — — — 41,500 — 41,500 Other intangible assets, net — — — 26,899 — 26,899 Tax assets — — — 1,383 — 1,383 Investment in subsidiaries 52,608 36,476 48,375 — (137,459 ) — Intercompany loans receivable 3,000 8,253 11,465 27,724 (50,442 ) — Other assets — — — 1,421 — 1,421 Total assets $ 56,035 $ 44,937 $ 59,902 $ 127,135 $ (188,365 ) $ 99,644 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ — $ — $ 993 $ — $ 993 Accounts payable — — — 1,709 — 1,709 Intercompany payable — — — 464 (464 ) — Accrued compensation 32 — — 1,680 — 1,712 Accrued income taxes 11 — — 555 — 566 Other accrued expenses 1 24 — 2,160 — 2,185 Total current liabilities 44 24 — 7,561 (464 ) 7,165 Long-term debt — 3,382 — 26,727 — 30,109 Accrued compensation and retirement benefits — — — 1,759 — 1,759 Accrued income taxes 10 — — 2,893 — 2,903 Intercompany loans payable 3,918 14,689 14,298 17,537 (50,442 ) — Deferred tax liabilities — — — 3,729 — 3,729 Other liabilities — — — 1,916 — 1,916 Total liabilities 3,972 18,095 14,298 62,122 (50,906 ) 47,581 Total equity 52,063 26,842 45,604 65,013 (137,459 ) 52,063 Total liabilities and equity $ 56,035 $ 44,937 $ 59,902 $ 127,135 $ (188,365 ) $ 99,644 Condensed Consolidating Statement of Cash Flows Fiscal Year Ended April 28, 2017 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by operating activities $ 842 $ 1,904 $ 302 $ 5,829 $ (1,997 ) $ 6,880 Investing Activities: Acquisitions, net of cash acquired — — — (1,324 ) — (1,324 ) Additions to property, plant, and equipment — — — (1,254 ) — (1,254 ) Purchases of investments — — — (4,371 ) — (4,371 ) Sales and maturities of investments — — — 5,356 — 5,356 Net (increase) decrease in intercompany loans receivable — 5,275 (5,911 ) 3,956 (3,320 ) — Capital contributions paid — (537 ) — — 537 — Other investing activities, net — — — 22 — 22 Net cash (used in) provided by investing activities — 4,738 (5,911 ) 2,385 (2,783 ) (1,571 ) Financing Activities: Acquisition-related contingent consideration — — — (69 ) — (69 ) Change in current debt obligations, net — — 901 5 — 906 Repayment of short-term borrowings (maturities greater than 90 days) — — — (2 ) — (2 ) Proceeds from short-term borrowings (maturities greater than 90 days) — — — 12 — 12 Issuance of long-term debt — — 1,850 290 — 2,140 Payments on long-term debt — — — (863 ) — (863 ) Dividends to shareholders (2,376 ) — — — — (2,376 ) Issuance of ordinary shares 428 — — — — 428 Repurchase of ordinary shares (3,544 ) — — — — (3,544 ) Net intercompany loan borrowings (repayments) 4,650 (6,817 ) 2,863 (4,016 ) 3,320 — Intercompany dividend paid — — — (1,997 ) 1,997 — Capital contributions received — — — 537 (537 ) — Other financing activities — — — 85 — 85 Net cash (used in) provided by financing activities (842 ) (6,817 ) 5,614 (6,018 ) 4,780 (3,283 ) Effect of exchange rate changes on cash and cash equivalents — — — 65 — 65 Net change in cash and cash equivalents — (175 ) 5 2,261 — 2,091 Cash and cash equivalents at beginning of period — 208 — 2,668 — 2,876 Cash and cash equivalents at end of period $ — $ 33 $ 5 $ 4,929 $ — $ 4,967 Condensed Consolidating Statement of Cash Flows Fiscal Year Ended April 29, 2016 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by operating activities $ 297 $ 4,208 $ 604 $ 4,114 $ (4,005 ) $ 5,218 Investing Activities: Acquisitions, net of cash acquired — — — (1,266 ) 53 (1,213 ) Additions to property, plant, and equipment — — — (1,046 ) — (1,046 ) Purchases of investments — — — (5,406 ) — (5,406 ) Sales and maturities of investments — — — 9,924 — 9,924 Net (increase) decrease in intercompany loans receivable — (8,193 ) (164 ) (3,302 ) 11,659 — Sale of subsidiaries — — 53 — (53 ) — Capital contributions paid — (720 ) (4,959 ) — 5,679 — Other investing activities, net — — — (14 ) — (14 ) Net cash (used in) provided by investing activities — (8,913 ) (5,070 ) (1,110 ) 17,338 2,245 Financing Activities: Acquisition-related contingent consideration — — — (22 ) — (22 ) Change in current debt obligations, net — — — 7 — 7 Repayment of short-term borrowings (maturities greater than 90 days) — — (139 ) — — (139 ) Proceeds from short-term borrowings (maturities greater than 90 days) — — 139 — — 139 Payments on long-term debt — (2,121 ) — (3,011 ) — (5,132 ) Dividends to shareholders (2,139 ) — — — — (2,139 ) Issuance of ordinary shares 491 — — — — 491 Repurchase of ordinary shares (2,830 ) — — — — (2,830 ) Net intercompany loan borrowings (repayments) 3,918 6,306 4,296 (2,861 ) (11,659 ) — Intercompany dividend paid — — — (4,005 ) 4,005 — Capital contributions received — — — 5,679 (5,679 ) — Other financing activities — — — 82 — 82 Net cash (used in) provided by financing activities (560 ) 4,185 4,296 (4,131 ) |
Schedule II
Schedule II | 12 Months Ended |
Apr. 28, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | MEDTRONIC PLC AND SUBSIDIARIES SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS (in millions) Additions Deductions Balance at Beginning of Fiscal Year Charges to Income Charges to Other Accounts Other Changes (Debit) Credit Balance at End of Fiscal Year Allowance for doubtful accounts: Year ended 4/28/17 $ 161 $ 39 $ — $ (46 ) (b) $ 155 $ 1 (c) Year ended 4/29/16 $ 144 $ 49 $ — $ (28 ) (b) $ 161 $ (4 ) (c) Year ended 4/24/15 $ 115 $ 35 $ 34 (a) $ (36 ) (b) $ 144 $ (4 ) (c) Deferred tax valuation allowance: Year ended 4/28/17 $ 7,032 $ 101 $ 6 (a) $ (524 ) (d) $ 6,311 $ (304 ) (c) Year ended 4/29/16 $ 5,607 $ 1,194 $ 4 (a) $ (88 ) (d) $ 7,032 $ 315 (c) Year ended 4/24/15 $ 397 $ 40 $ 5,660 (a) $ (56 ) (d) $ 5,607 $ (434 ) (c) (a) Reflects the impact from acquisitions. (b) Uncollectible accounts written off, less recoveries. (c) Reflects primarily the effects of currency fluctuations. (d) Decrease in deferred tax valuation allowance due to carryover attribute utilization and expiration. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 28, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of Medtronic plc, its wholly-owned subsidiaries, entities for which the Company has a controlling financial interest, and variable interest entities for which the Company is the primary beneficiary. Intercompany transactions and balances have been fully eliminated in consolidation. |
Reclassifications | Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used when accounting for items such as income taxes, contingencies, and intangible asset and liability valuations. Actual results may or may not differ from those estimates. |
Fiscal Year-End | The Company utilizes a 52/53-week fiscal year, ending the last Friday in April, for the presentation of its consolidated financial statements and related notes thereto at April 28, 2017 and April 29, 2016 and for each of the three fiscal years ended April 28, 2017 (fiscal year 2017 ), April 29, 2016 (fiscal year 2016 ), and April 24, 2015 (fiscal year 2015 ). Fiscal years 2017 and 2015 were 52-week years. Fiscal year 2016 was a 53-week year, with the additional week occurring in the first quarter. |
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 certain debt securities, which include corporate debt securities, government and agency securities, mortgage-backed securities, other asset-backed securities, debt funds, and auction rate securities, are classified and accounted for as available-for-sale. 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 accumulated other 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 primarily include exchange-traded funds and are recorded at fair value on the consolidated balance sheets. Management has used trading securities when seeking to offset changes in liabilities related to equity and other market risks of certain deferred compensation arrangements. 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. These investments are included in other assets on the consolidated balance sheets. If an investment has no quoted market price, the Company accounts for these investments under the cost or the equity method of accounting, as appropriate. Certain of these investments are publicly traded companies and are therefore accounted for as available-for-sale. 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 is recognized in the consolidated statements of income 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 are 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. |
Inventories | Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. The Company reduces the carrying value of inventories for those items that are potentially excess, obsolete or slow-moving based on changes in customer demand, technology developments or other economic factors. |
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. The Company assesses property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of property, plant, and equipment asset groupings may not be recoverable. The company utilizes the straight-line method of depreciation over the estimated useful lives of the various assets. The cost of interest that is incurred in connection with ongoing construction projects is capitalized using a weighted average interest rate. These costs are included in property, plant, and equipment and amortized over the useful life of the related asset. |
Goodwill | Goodwill is the excess of the purchase price over the estimated fair value of net assets 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 exceeds the estimated fair value of the reporting unit. The estimated fair value is determined using a discounted future cash flow analysis. |
Intangible Assets | Intangible assets include patents, trademarks, tradenames, customer relationships, purchased technology, and in-process research and development (IPR&D). Intangible assets with a definite life are amortized on a straight-line basis 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 | Acquired IPR&D represents the fair value assigned to those research and development (R&D) projects in development that were acquired in a business combination for which the related products have not received regulatory approval and have no alternative future use. IPR&D is capitalized at its fair value as an indefinite-lived intangible asset, and any development costs incurred after the acquisition are expensed as incurred. The fair value of IPR&D is determined by estimating the future cash flows of each R&D project or technology and discounting the net cash flows back to their present values. Upon achieving regulatory approval or commercial viability for the related technology or product, the indefinite-lived intangible asset is accounted for as a definite-lived asset and is amortized on a straight-line basis over the estimated useful life of the related technology or product. If the R&D project is not completed or the related R&D project is terminated or abandoned, the Company may have an impairment related to the IPR&D which is charged to expense. |
Contingent Consideration | The Company recognizes contingent consideration at fair value at the date of acquisition based on the consideration expected to be transferred, estimated as the probability-weighted future cash flows, discounted back to present value. The discount rate used is determined at the time of measurement in accordance with accepted valuation methodologies. Contingent consideration is remeasured each reporting period with the change in fair value, including accretion for the passage of time, recognized as income or expense within acquisition-related items in the consolidated statements of income. |
Derivatives | The Company recognizes all derivative financial instruments in its consolidated financial statements at fair value in accordance with authoritative guidance on derivatives and hedging, and presents assets and liabilities associated with its derivative financial instruments on a gross basis in the consolidated financial statements. For those derivative instruments that are designated and qualify as hedging instruments, the hedging instrument must be designated, based upon the exposure being hedged, as a fair value hedge, a cash flow hedge, or a hedge of a net investment in a foreign operation. See Note 9 for more information on the Company's derivative instruments and hedging programs. |
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. 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: • Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities. • 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. • Level 3 - Inputs are unobservable for the asset or liability. Financial assets that are classified as Level 1 securities include highly liquid government bonds within U.S. government and agency securities and marketable equity securities for which quoted market prices are available. In addition, the Company classifies currency forward contracts as Level 1 since they 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, government and agency securities, other asset-backed securities, debt funds, and mortgage-backed securities whose value is determined using inputs that are observable in the market or may 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. 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. Financial assets that are classified as Level 3 financial assets include certain investment securities for which there is limited market activity such that the determination of fair value requires significant judgment or estimation, certain corporate debt securities and auction rate securities. With the exception of auction rate securities, these securities are 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 could result in a significantly lower (higher) fair value of the securities. Certain investments for which the fair value is measured using the net asset value per share (or its equivalent) practical expedient are excluded from the fair value hierarchy. Financial assets for which the fair value is measured using the net asset value per share practical expedient include certain debt funds, equity and fixed income commingled trusts, and registered investment companies. |
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. The amount of the reserve recorded is equal to the net costs to repair or otherwise satisfy the obligation. The Company includes the warranty obligation in other accrued expenses and other long-term liabilities on the consolidated balance sheets. |
Self-Insurance | It is the Company’s policy to self-insure the 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 are 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, post-retirement medical plans, defined contribution savings plans, and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. See Note 17 for assumptions used in determining pension and post-retirement benefit costs. The Company changed the methodology used to estimate the service and interest cost components of net periodic pension cost and net periodic post-retirement benefit cost for the Company’s pension and other post-retirement benefits, effective April 30, 2016. Prior to April 30, 2016, the Company estimated such cost components utilizing a single weighted-average discount rate derived from the market-observed yield curves of high-quality fixed income securities used to measure the pension benefit obligation and accumulated post-retirement benefit obligation. The current methodology utilizes a full yield curve approach in the estimation of these cost components by applying the specific spot rates along the yield curve to their underlying projected cash flows and provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates. The change does not affect the measurement of the Company’s pension obligation or accumulated post-retirement benefit obligation. The Company accounted for this change prospectively as a change in accounting estimate. |
Revenue Recognition | The Company sells its products through direct sales representatives and independent distributors. The Company recognizes revenue when title to the goods and risk of loss transfers to customers, which may be upon shipment or upon delivery to the customer site, based on the contract terms or legal requirements, 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, revenue is recognized 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 recognizes estimated sales returns, discounts, and rebates as a reduction of sales in the same period revenue is recognized. Rebates are estimated based on sales terms, historical experience, and trend analysis. In estimating rebates, the Company considers the lag time between the point of sale and the payment of the rebate claim, contractual commitments, including stated rebate rates, and other relevant information. The Company adjusts reserves to reflect differences between estimated and actual experience, and records such adjustment as a reduction of sales in the period of adjustment. In certain circumstances, the Company enters into arrangements in which multiple deliverables are provided to customers. Under multiple deliverable arrangements, the Company recognizes revenue in accordance with the principles described above and allocates the revenue based on the relative selling price of each deliverable, which is based on vendor specific objective evidence. |
Shipping and Handling | Shipping and handling costs not included in cost of products sold are included in selling, general, and administrative expense in the consolidated statements of income and were $370 million , $316 million , and $284 million in fiscal years 2017 , 2016 , and 2015 , respectively |
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. |
Contingencies | The Company records a liability in the consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount may 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 may be reasonably estimated, the estimated loss or range of loss is disclosed. Insurance recoveries related to potential claims are recognized up to the amount of the recorded liability when coverage is confirmed and the estimated recoveries are probable of payment. These recoveries are not netted against the related liabilities for financial statement presentation. |
Income Taxes | The Company has deferred taxes that 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 may 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 income. 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. 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 income. |
Other Expense, Net | Other expense, net includes royalty income and expense, realized equity security gains and losses, currency transaction and derivative gains and losses, impairment charges on equity securities, Puerto Rico excise tax, and U.S. medical device excise tax. |
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 currency impacts arising from the translation of the assets and liabilities 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 income are translated at the average monthly currency exchange rates in effect during the period. Currency transaction gains and losses are included in other expense, net in the consolidated statements of income. |
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. 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 and revises those estimates in subsequent periods. The total expense recognized over the vesting period equals the fair value of awards that vest. |
New Accounting Standards | Recently Adopted In April 2015, the Financial Accounting Standards Board (FASB) issued accounting guidance that requires debt issuance costs to be presented in the balance sheet as a direct deduction from the related debt liability. Prior to this amendment, debt issuance costs were recognized as an asset in the balance sheet and did not offset the related debt liability. The Company retrospectively adopted this guidance in the first quarter of fiscal year 2017. Its adoption resulted in a reduction of both assets and liabilities of $138 million on the Company's consolidated balance sheet at April 29, 2016 as previously filed in the Company's Annual Report on Form 10-K for the year ended April 29, 2016 . Not Yet Adopted 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 in an amount that reflects the consideration to which an entity expects to be entitled in exchange for the transfer of 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 2019, and may be applied either retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of the change recognized at the date of initial application (modified retrospective method). Early adoption is permitted. The Company intends to adopt this guidance under the modified retrospective method. The Company is continuing to evaluate the impact of the guidance and will continue to monitor any modifications, clarifications, and interpretations communicated by the FASB. In January 2016, the FASB issued guidance which requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The guidance also includes a simplified impairment assessment of equity investments without readily determinable fair values and presentation and disclosure changes. This accounting guidance is required for the Company to adopt beginning in the first quarter of fiscal year 2019. The Company is unable to estimate the impact of the future adoption of this standard on its financial statements as it will depend on the equity investments at the adoption date. In February 2016, the FASB issued guidance which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet. The guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period in the financial statements and is effective for the Company beginning in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is evaluating the impact of the lease guidance on the Company's consolidated financial statements and anticipates recording additional assets and corresponding liabilities on its consolidated balance sheet related to operating leases within its lease portfolio upon adoption of the guidance. In March 2016, the FASB issued guidance to simplify the accounting for share based payment transactions by requiring all excess tax benefits and deficiencies to be recognized in income tax expense or benefit in earnings; eliminating the requirement to classify the excess tax benefits and deficiencies as additional paid-in capital. Under the new guidance, an entity makes an accounting policy election to either estimate the expected forfeiture awards or account for forfeitures as they occur. This accounting guidance is effective for the Company beginning in the first quarter of fiscal year 2018. The Company recognized excess tax benefits of $92 million , $82 million and $81 million in excess tax benefits in additional paid-in capital in fiscal years 2017 , 2016 , and 2015 , respectively. In October 2016, the FASB issued guidance that requires the tax effect of inter-entity transactions, other than sales of inventory, to be recognized when the transaction occurs. This would eliminate the exception under the current guidance in which the tax effects of inter-entity asset transactions are deferred until the transferred asset is sold to a third party or otherwise recovered through use. This accounting guidance is required for the Company to adopt beginning in the first quarter of fiscal year 2019. Early adoption is permitted. The Company is currently evaluating the impact of the guidance on the Company's consolidated financial statements. |
Earnings Per Share | Earnings per share is calculated using the two-class method, as the Company's A Preferred Shares are considered participating securities. Accordingly, earnings are allocated to both ordinary shares and participating securities in determining earnings per ordinary share. Due to the limited number of A Preferred Shares outstanding, this allocation had no effect on the ordinary earnings per share; therefore, it is not presented below. Basic earnings per share is computed based on the weighted average number of ordinary shares outstanding. Diluted earnings per share is computed based on the weighted number of ordinary shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive ordinary shares been issued, and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive ordinary shares. Potentially dilutive ordinary shares include stock options and other stock-based awards granted under the stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. |
Acquisitions and Acquisition-33
Acquisitions and Acquisition-Related Items (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Business Acquisition [Line Items] | |
Fair Value Inputs, Liabilities, Quantitative Information | The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs: (in millions) Fair Value at April 28, 2017 Valuation Technique Unobservable Input Range Discount rate 11% - 32.5% Revenue-based payments $ 106 Discounted cash flow Probability of payment 30% - 100% Projected fiscal year of payment 2018 - 2026 Discount rate 0.3% - 5.5% Product development-based payments $ 140 Discounted cash flow Probability of payment 75% - 100% Projected fiscal year of payment 2018 - 2025 |
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: Fiscal Year (in millions) 2017 2016 Beginning Balance $ 377 $ 264 Purchase price contingent consideration 28 149 Contingent consideration payments (76 ) (22 ) Change in fair value of contingent consideration (83 ) (14 ) Ending Balance $ 246 $ 377 |
2017 Acquisitions | |
Business Acquisition [Line Items] | |
Schedule of Fair Value of the Assets Acquired and Liabilities Assumed | The fair values of the assets acquired and liabilities assumed from acquisitions during fiscal year 2017 are as follows: (in millions) HeartWare International, Inc. Smith & Nephew's Gynecology Business All Other Total Other current assets $ 351 $ — $ 23 $ 374 Property, plant, and equipment 14 3 4 21 Other intangible assets 625 167 65 857 Goodwill 427 180 125 732 Other assets 55 — 16 71 Total assets acquired 1,472 350 233 2,055 Current liabilities 143 — 10 153 Deferred tax liabilities 6 — 7 13 Long-term debt 245 — — 245 Other liabilities 6 — 4 10 Total liabilities assumed 400 — 21 421 Net assets acquired $ 1,072 $ 350 $ 212 $ 1,634 |
Assets and Liabilities Held f34
Assets and Liabilities Held for Sale (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Classified as Held for Sale | The following table presents information related to the assets and liabilities that were classified as held for sale in our consolidated balance sheet: (in millions) April 28, 2017 Inventories, net $ 371 Property, plant, and equipment, net 689 Goodwill 2,910 Other intangible assets, net 2,320 Total assets held for sale $ 6,290 Other accrued expenses $ 34 Accrued compensation and retirement benefits 12 Deferred tax liabilities 707 Other liabilities 1 Total liabilities held for sale $ 754 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Cost Synergies Initiative | |
Restructuring Charges | |
Schedule of Restructuring Reserve | A summary of the restructuring accrual, recorded within other accrued expenses and other liabilities in the consolidated balance sheets, and related activity is presented below: (in millions) Employee Termination Costs Asset Write-downs Other Costs Total April 24, 2015 $ 136 $ — $ 7 $ 143 Charges 248 23 61 332 Cash payments (153 ) — (31 ) (184 ) Settled non cash — (23 ) — (23 ) Reversal of excess reserves (18 ) — — (18 ) April 29, 2016 $ 213 $ — $ 37 $ 250 Charges 287 27 54 368 Cash payments (179 ) — (53 ) (232 ) Settled non cash — (27 ) — (27 ) Reversal of excess reserves (60 ) — (8 ) (68 ) April 28, 2017 $ 261 $ — $ 30 $ 291 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Investments [Abstract] | |
Investments by Category and Related Balance Sheet Presentation | The following table summarizes the Company's investments by significant investment category and the consolidated balance sheet classification at April 28, 2017 : Valuation Balance Sheet Classification (in millions) Cost Unrealized Gains Unrealized Losses Fair Value Investments Other Assets Available-for-sale securities Level 1: U.S. government and agency securities $ 613 $ 2 $ (5 ) $ 610 $ 610 $ — Marketable equity securities 58 49 (4 ) 103 — 103 Total Level 1 671 51 (9 ) 713 610 103 Level 2: Corporate debt securities 4,643 62 (23 ) 4,682 4,682 — U.S. government and agency securities 860 — (10 ) 850 850 — Mortgage-backed securities 766 9 (16 ) 759 759 — Foreign government and agency securities 49 — — 49 49 — Other asset-backed securities 228 1 (1 ) 228 228 — Debt funds 1,246 4 (178 ) 1,072 1,072 — Total Level 2 7,792 76 (228 ) 7,640 7,640 — Level 3: Corporate debt securities 1 — — 1 — 1 Auction rate securities 47 — (3 ) 44 — 44 Total Level 3 48 — (3 ) 45 — 45 Investments measured at net asset value (1) : Debt funds 497 — (6 ) 491 491 — Total available-for-sale securities 9,008 127 (246 ) 8,889 8,741 148 Cost method, equity method, and other investments: Level 3: Cost method, equity method, and other investments 589 — — N/A — 589 Total Level 3: 589 — — N/A — 589 Total cost method, equity method, and other investments 589 — — N/A — 589 Total investments $ 9,597 $ 127 $ (246 ) $ 8,889 $ 8,741 $ 737 (1) Certain investments that are measured at the net asset value per share (or its equivalent) as a practical expedient are excluded from the fair value hierarchy. The fair value amounts presented herein are intended to permit reconciliation to the consolidated balance sheets. The following table summarizes the Company's investments by significant investment categories and the related consolidated balance sheet classification at April 29, 2016 : Valuation Balance Sheet Classification (in millions) Cost Unrealized Gains Unrealized Losses Fair Value Investments Other Assets Available-for-sale securities: Level 1: U.S. government and agency securities $ 792 $ 14 $ (1 ) $ 805 $ 805 $ — Marketable equity securities 75 21 (11 ) 85 — 85 Total Level 1 867 35 (12 ) 890 805 85 Level 2: Corporate debt securities 3,935 85 (24 ) 3,996 3,996 — U.S. government and agency securities 902 2 — 904 904 — Mortgage-backed securities 1,016 17 (18 ) 1,015 1,015 — Other asset-backed securities 192 3 — 195 195 — Debt funds 2,306 5 (247 ) 2,064 2,064 — Total Level 2 8,351 112 (289 ) 8,174 8,174 — Level 3: Corporate debt securities 1 — — 1 — 1 Auction rate securities 47 — (3 ) 44 — 44 Total Level 3 48 — (3 ) 45 — 45 Investments measured at net asset value (1) : Debt funds 734 — (34 ) 700 700 — Total available-for-sale securities 10,000 147 (338 ) 9,809 9,679 130 Trading securities: Level 1: Exchange-traded funds 65 15 (1 ) 79 79 — Total Level 1 65 15 (1 ) 79 79 — Total trading securities 65 15 (1 ) 79 79 — Cost method, equity method, and other investments: Level 3: Cost method, equity method, and other investments 506 — — N/A — 506 Total Level 3 506 — — N/A — 506 Total cost method, equity method, and other investments 506 — — N/A — 506 Total investments $ 10,571 $ 162 $ (339 ) $ 9,888 $ 9,758 $ 636 (1) Certain investments that are measured at the net asset value per share (or its equivalent) as a practical expedient are excluded from the fair value hierarchy. The fair value amounts presented herein are intended to permit reconciliation to the consolidated balance sheets. |
Gross Unrealized Losses and Fair Values of Available-for-sale Securities that Have Been in a Continuous Unrealized Loss Position Deemed to be Temporary, Aggregated by Investment Category | The following tables present 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 at April 28, 2017 and April 29, 2016 : April 28, 2017 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized Corporate debt securities $ 1,263 $ (19 ) $ 46 $ (4 ) Auction rate securities — — 44 (3 ) Mortgage-backed securities 276 (4 ) 95 (12 ) U.S. government and agency securities 896 (15 ) — — Other asset-backed securities 127 (1 ) — — Debt funds 173 (1 ) 1,125 (183 ) Marketable equity securities 14 (3 ) 2 (1 ) Total $ 2,749 $ (43 ) $ 1,312 $ (203 ) April 29, 2016 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate debt securities $ 756 $ (18 ) $ 136 $ (6 ) Auction rate securities — — 44 (3 ) Mortgage-backed securities 196 (5 ) 92 (5 ) U.S. government and agency securities 308 (4 ) 67 (5 ) Debt funds 670 (26 ) 1,601 (256 ) Marketable equity securities 45 (11 ) — — Total $ 1,975 $ (64 ) $ 1,940 $ (275 ) |
Unobservable Inputs Utilized in the Fair Value Measurement of Auction Rate Securities Classified as Level 3 | The following table presents the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 at April 28, 2017 : Valuation Technique Unobservable Input Range (Weighted Average) Auction rate securities Discounted cash flow Years to principal recovery 2 yrs. - 12 yrs. (3 yrs.) Illiquidity premium 6% |
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 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): (in millions) Total Level 3 Corporate debt Auction rate April 29, 2016 $ 45 $ 1 $ 44 Unrealized gains/(losses) included in other comprehensive income — — — Settlements — — — April 28, 2017 $ 45 $ 1 $ 44 (in millions) Total Level 3 Corporate debt Auction rate April 24, 2015 $ 106 $ 1 $ 105 Unrealized gains/(losses) included in other comprehensive income (3 ) — (3 ) Settlements (58 ) — (58 ) April 29, 2016 $ 45 $ 1 $ 44 |
Activity Related to the Company's Investment Portfolio | Activity related to the Company’s investment portfolio is as follows: Fiscal Year 2017 2016 2015 (in millions) Debt (1) Equity (2)(3) Debt (1) Equity (2)(4) Debt (1) Equity (2)(5) Proceeds from sales $ 5,224 $ 132 $ 9,881 $ 42 $ 5,640 $ 250 Gross realized gains 75 49 36 38 33 164 Gross realized losses (56 ) — (53 ) — (19 ) — Impairment losses recognized — (30 ) — (114 ) — (29 ) (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 certain acquisitions that occurred during fiscal year 2017 , the Company recognized a non-cash realized gain of $20 million on its previously-held minority investment included in other expense, net in the consolidated statement of income. (4) As a result of certain acquisitions that occurred during fiscal year 2016 , the Company recognized a non-cash realized gain of $9 million on its previously-held minority investment included in other expense, net in the consolidated statement of income. (5) As a result of certain acquisitions that occurred during fiscal year 2015 , the Company recognized a non-cash realized gain of $41 million on its previously-held minority investments included in other expense, net in the consolidated statement of income. Also, a realized gain on an equity method investment totaling $97 million is included in special charge (gain), net in the consolidated statement of income. |
Available-for-sale Debt Securities Contractual Maturities | The April 28, 2017 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) April 28, 2017 Due in one year or less $ 1,110 Due after one year through five years 2,855 Due after five years through ten years 3,177 Due after ten years 81 Total debt securities $ 7,223 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents the changes in the carrying amount of goodwill by reportable segment: (in millions) Cardiac and Vascular Group Minimally Invasive Therapies Group Restorative Therapies Group Diabetes Group Total April 24, 2015 $ 5,855 $ 23,399 $ 9,424 $ 1,852 $ 40,530 Goodwill as a result of acquisitions 393 264 199 — 856 Measurement period adjustments related to Covidien 21 346 26 — 393 Other adjustments, net — (34 ) 3 — (31 ) Currency adjustment, net (26 ) (191 ) (32 ) 1 (248 ) April 29, 2016 6,243 23,784 9,620 $ 1,853 41,500 Goodwill as a result of acquisitions 457 242 33 — 732 Currency adjustment, net (49 ) (705 ) (53 ) — (807 ) Goodwill reclassified to noncurrent assets held for sale — (2,910 ) — — (2,910 ) April 28, 2017 $ 6,651 $ 20,411 $ 9,600 $ 1,853 $ 38,515 |
Schedule of Finite-Lived Intangible Assets by Major Class | The following table presents the gross carrying amount and accumulated amortization of intangible assets: April 28, 2017 April 29, 2016 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 16,862 $ (2,166 ) $ 18,596 $ (1,331 ) Purchased technology and patents 11,461 (3,690 ) 11,397 (2,976 ) Trademarks and tradenames 772 (461 ) 854 (403 ) Other 77 (42 ) 72 (31 ) Total $ 29,172 $ (6,359 ) $ 30,919 $ (4,741 ) Indefinite-lived: IPR&D $ 594 $ 721 |
Schedule of Indefinite-Lived Intangible Assets by Major Class | The following table presents the gross carrying amount and accumulated amortization of intangible assets: April 28, 2017 April 29, 2016 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 16,862 $ (2,166 ) $ 18,596 $ (1,331 ) Purchased technology and patents 11,461 (3,690 ) 11,397 (2,976 ) Trademarks and tradenames 772 (461 ) 854 (403 ) Other 77 (42 ) 72 (31 ) Total $ 29,172 $ (6,359 ) $ 30,919 $ (4,741 ) Indefinite-lived: IPR&D $ 594 $ 721 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated aggregate amortization expense by fiscal year based on the current carrying value of definite-lived intangible assets at April 28, 2017 , excluding any possible future amortization associated with acquired IPR&D which has not met technological feasibility and amortization associated with definite-lived intangible assets classified as held for sale at April 28, 2017 , is as follows: (in millions) Amortization Expense 2018 $ 1,809 2019 1,725 2020 1,680 2021 1,666 2022 1,624 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Current debt obligations consisted of the following: (in millions) April 28, 2017 April 29, 2016 Bank borrowings $ 396 $ 387 Capital lease obligations 5 106 Commercial paper 901 — Three-year term loan 3,000 — 6.000 percent ten-year 2008 CIFSA senior notes 1,150 — 1.500 percent three-year 2015 senior notes 1,000 — 1.375 percent five-year 2013 senior notes 1,000 — 3.500 percent seven-year 2010 HTWR senior notes 42 — Floating rate three-year 2014 senior notes — 250 0.875 percent three-year 2014 senior notes — 250 Debt premium, net 26 — Current debt obligations $ 7,520 $ 993 |
Schedule of Long-term Debt | Long-term debt consisted of the following: April 28, 2017 April 29, 2016 (in millions, except interest rates) Maturity by Fiscal Year Payable Effective Interest Rate Payable Effective Interest Rate 6.000 percent ten-year 2008 CIFSA senior notes 2018 $ — 1.41 % $ 1,150 1.41 % 1.375 percent five-year 2013 senior notes 2018 — 1.41 1,000 1.41 1.500 percent three-year 2015 senior notes 2018 — 1.59 1,000 1.59 5.600 percent ten-year 2009 senior notes 2019 400 5.61 400 5.61 1.700 percent two-year 2017 senior notes 2019 1,000 1.74 — — 4.450 percent ten-year 2010 senior notes 2020 766 4.47 766 4.47 2.500 percent five-year 2015 senior notes 2020 2,500 2.52 2,500 2.52 Floating rate five-year 2015 senior notes 2020 500 1.98 500 1.04 4.200 percent ten-year 2010 CIFSA senior notes 2021 600 2.22 600 2.22 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 3.150 percent seven-year 2015 senior notes 2022 2,500 3.18 2,500 3.18 3.200 percent ten-year 2012 CIFSA senior notes 2023 650 2.66 650 2.66 2.750 percent ten-year 2013 senior notes 2023 530 2.78 530 2.78 2.950 percent ten-year 2013 CIFSA senior notes 2024 310 2.67 310 2.67 3.625 percent ten-year 2014 senior notes 2024 850 3.65 850 3.65 3.500 percent ten-year 2015 senior notes 2025 4,000 3.61 4,000 3.61 3.350 percent ten-year 2017 senior notes 2027 850 3.35 — — 4.375 percent twenty-year 2015 senior notes 2035 2,382 4.44 2,382 4.44 6.550 percent thirty-year 2007 CIFSA senior notes 2038 374 3.75 374 3.75 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 325 4.12 325 4.12 4.625 percent thirty-year 2014 senior notes 2044 650 4.67 650 4.67 4.625 percent thirty-year 2015 senior notes 2045 4,150 4.62 4,000 4.64 Three-year term loan 2018 — — 3,000 1.12 Interest rate swaps 2021-2022 40 — 89 — Capital lease obligations 2019-2025 23 4.81 26 4.66 Bank borrowings 2019-2022 139 1.28 56 6.46 Debt premium, net 2019-2045 135 — 214 — Deferred financing costs 2019-2045 (128 ) — (138 ) — Long-term debt $ 25,921 $ 30,109 |
Schedule of Maturities of Long-term Debt | Contractual maturities of debt for the next five fiscal years and thereafter, excluding deferred financing costs, debt premium, net, and the fair value of outstanding interest rate swap agreements are as follows: (in millions) 2018 $ 7,494 2019 1,403 2020 3,778 2021 1,127 2022 3,276 Thereafter 16,290 Total debt 33,368 Less: Current portion of debt 7,494 Long-term portion of debt $ 25,874 |
Derivatives and Currency Exch39
Derivatives and Currency Exchange Risk Management (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss) in Statement of Financial Performance | The amounts and classification of the gains in the consolidated statements of income related to derivative instruments, not designated as hedging instruments, for fiscal years 2017 , 2016 , and 2015 are as follows: Fiscal Year (in millions) Classification 2017 2016 2015 Currency exchange rate contracts Other expense, net $ 54 $ 33 $ 210 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Other Comprehensive Income, Location | The amount of gross gains (losses), classification of the gains (losses) in the consolidated statements of income, and the accumulated other comprehensive (loss) income (AOCI) related to the effective portion of currency exchange rate contract derivative instruments designated as cash flow hedges for fiscal years 2017 , 2016 , and 2015 were as follows: Fiscal Year 2017 Recognized in AOCI Recognized in Income (in millions) Amount Classification Amount Currency exchange rate contracts $ 342 Other expense, net $ 173 Total $ 342 $ 173 Fiscal Year 2016 Recognized in AOCI Recognized in Income (in millions) Amount Classification Amount Currency exchange rate contracts $ (165 ) Other expense, net $ 405 Cost of products sold (37 ) Total $ (165 ) $ 368 Fiscal Year 2015 Recognized in AOCI Recognized in Income (in millions) Amount Classification Amount Currency exchange rate contracts $ 707 Other expense, net $ 221 Cost of products sold (65 ) Total $ 707 $ 156 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables summarize the balance sheet classification and fair value of derivative instruments included in the consolidated balance sheets at April 28, 2017 and April 29, 2016 . 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 28, 2017 Derivative Assets Derivative Liabilities (in millions) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedging instruments Currency exchange rate contracts Prepaid expenses and other current assets $ 152 Other accrued expenses $ 43 Interest rate contracts Other assets 41 Other liabilities — Currency exchange rate contracts Other assets 48 Other liabilities 14 Total derivatives designated as hedging instruments $ 241 $ 57 Derivatives not designated as hedging instruments Currency exchange rate contracts Prepaid expenses and other current assets $ 16 Other accrued expenses $ 36 Cross currency interest rate contracts Other assets 5 Other liabilities 11 Total derivatives not designated as hedging instruments $ 21 $ 47 Total derivatives $ 262 $ 104 April 29, 2016 Derivative Assets Derivative Liabilities (in millions) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedging instruments Currency exchange rate contracts Prepaid expenses and other current assets $ 123 Other accrued expenses $ 89 Interest rate contracts Other assets 89 Other liabilities 48 Currency exchange rate contracts Other assets 9 Other liabilities 54 Total derivatives designated as hedging instruments $ 221 $ 191 Derivatives not designated as hedging instruments Commodity derivatives Prepaid expenses and other current assets $ — Other accrued expenses $ 1 Currency exchange rate contracts Prepaid expenses and other current assets 13 Other accrued expenses 23 Cross currency interest rate contracts Other assets 14 Other liabilities 4 Total derivatives not designated as hedging instruments $ 27 $ 28 Total derivatives $ 248 $ 219 |
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table provides information by level for the derivative assets and liabilities that are measured at fair value on a recurring basis: April 28, 2017 April 29, 2016 (in millions) Level 1 Level 2 Level 1 Level 2 Derivative assets $ 216 $ 46 $ 145 $ 103 Derivative liabilities 93 11 166 53 |
Offsetting Assets | 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. April 28, 2017 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 216 $ (58 ) $ (55 ) $ 103 Interest rate contracts 41 (15 ) (5 ) 21 Cross currency interest rate contracts 5 (2 ) — 3 $ 262 $ (75 ) $ (60 ) $ 127 Derivative liabilities: Currency exchange rate contracts $ (93 ) $ 73 $ — $ (20 ) Cross currency interest rate contracts (11 ) 2 — (9 ) (104 ) 75 — (29 ) Total $ 158 $ — $ (60 ) $ 98 April 29, 2016 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 145 $ (98 ) $ (1 ) $ 46 Interest rate contracts 89 (20 ) — 69 Cross currency interest rate contracts 14 — — 14 $ 248 $ (118 ) $ (1 ) $ 129 Derivative liabilities: Currency exchange rate contracts $ (166 ) $ 85 $ 26 $ (55 ) Interest rate contracts (48 ) 34 — (14 ) Cross currency interest rate contracts (4 ) — — (4 ) Commodity contracts (1 ) — — (1 ) (219 ) 119 26 (74 ) Total $ 29 $ 1 $ 25 $ 55 |
Offsetting 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. April 28, 2017 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 216 $ (58 ) $ (55 ) $ 103 Interest rate contracts 41 (15 ) (5 ) 21 Cross currency interest rate contracts 5 (2 ) — 3 $ 262 $ (75 ) $ (60 ) $ 127 Derivative liabilities: Currency exchange rate contracts $ (93 ) $ 73 $ — $ (20 ) Cross currency interest rate contracts (11 ) 2 — (9 ) (104 ) 75 — (29 ) Total $ 158 $ — $ (60 ) $ 98 April 29, 2016 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 145 $ (98 ) $ (1 ) $ 46 Interest rate contracts 89 (20 ) — 69 Cross currency interest rate contracts 14 — — 14 $ 248 $ (118 ) $ (1 ) $ 129 Derivative liabilities: Currency exchange rate contracts $ (166 ) $ 85 $ 26 $ (55 ) Interest rate contracts (48 ) 34 — (14 ) Cross currency interest rate contracts (4 ) — — (4 ) Commodity contracts (1 ) — — (1 ) (219 ) 119 26 (74 ) Total $ 29 $ 1 $ 25 $ 55 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Balances | Inventory balances, net of reserves, were as follows: (in millions) April 28, 2017 April 29, 2016 Finished goods $ 2,211 $ 2,242 Work in-process 458 499 Raw materials 669 732 Total $ 3,338 $ 3,473 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Balances and Corresponding Lives | Property, plant, and equipment balances and corresponding estimated useful lives were as follows: (in millions) April 28, 2017 April 29, 2016 Estimated Useful Lives Land and land improvements $ 186 $ 215 Up to 20 Buildings and leasehold improvements 2,175 2,394 Up to 40 Equipment 6,435 6,328 Generally 3-7, up to 15 Construction in progress 895 777 — Subtotal 9,691 9,714 Less: Accumulated depreciation (5,330 ) (4,873 ) Property, plant, and equipment, net $ 4,361 $ 4,841 |
Warranty Obligations (Tables)
Warranty Obligations (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty Obligations | The following table presents the changes in the Company’s product warranty obligations: (in millions) Warranty Obligation April 24, 2015 $ 135 Warranty claims provision 64 Settlements (91 ) April 29, 2016 $ 108 Warranty claims provision 61 Settlements (68 ) April 28, 2017 $ 101 |
Stock Purchase and Award Plans
Stock Purchase and Award Plans (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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 2017 2016 2015 Weighted average fair value of options granted $ 14.70 $ 13.72 $ 25.39 Assumptions used: Expected life (years) (1) 6.18 5.94 4.24 Risk-free interest rate (2) 1.26 % 1.79 % 0.99 % Volatility (3) 21.07 % 21.00 % 21.29 % Dividend yield (4) 1.97 % 1.96 % 1.66 % (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. (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 ordinary shares. Implied volatility is based on market traded options of the Company’s ordinary shares. (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. |
Schedule of Stock-Based Compensation Expense by Plan | The following table presents the components and classification of stock-based compensation expense for stock options, restricted stock, and ESPP shares recognized for fiscal years 2017 , 2016 , and 2015 : Fiscal Year (in millions) 2017 2016 2015 Stock options $ 157 $ 206 $ 140 Restricted stock 169 148 284 Employees stock purchase plan 22 21 15 Total stock-based compensation expense $ 348 $ 375 $ 439 Cost of products sold $ 49 $ 50 $ 23 Research and development expense 41 37 29 Selling, general, and administrative expense 233 212 128 Restructuring charges 2 18 70 Acquisition-related items 23 58 189 Total stock-based compensation expense 348 375 439 Income tax benefits (98 ) (108 ) (138 ) Total stock-based compensation expense, net of tax $ 250 $ 267 $ 301 |
Schedule of Stock Options Activity | Stock Options The following table summarizes all stock option activity, including activity from options assumed or issued as a result of acquisitions, during fiscal year 2017 : Options (in thousands) Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding at April 29, 2016 52,970 $ 57.09 Granted 4,061 87.35 Exercised (9,488 ) 40.56 Expired/Forfeited (2,349 ) 73.90 Outstanding at April 28, 2017 45,194 62.41 6.30 $ 952 Vested and expected to vest at April 28, 2017 22,929 75.32 7.89 194 Exercisable at April 28, 2017 19,138 44.71 4.14 735 The following table summarizes the total cash received from the issuance of new shares upon stock option award exercises, the total intrinsic value of options exercised and the related tax benefit during fiscal years 2017 , 2016 , and 2015 : Fiscal Year (in millions) 2017 2016 2015 Cash proceeds from options exercised $ 367 $ 452 $ 609 Intrinsic value of options exercised 403 374 329 Tax benefit related to options exercised 140 131 106 |
Schedule of Restricted Stock Award Activity | Restricted Stock The following table summarizes restricted stock activity, including activity from restricted stock assumed or issued as a result of acquisitions, during fiscal year 2017 : Awards (in thousands) Wtd. Avg. Grant Price Nonvested at April 29, 2016 8,820 $ 64.33 Granted 3,198 85.07 Vested (2,727 ) 48.17 Forfeited (503 ) 71.32 Nonvested at April 28, 2017 8,788 $ 76.49 The following table summarizes the weighted-average grant date fair value of restricted stock granted, total fair value of restricted stock vested and related tax benefit during fiscal years 2017 , 2016 , and 2015 : Fiscal Year (in millions, except per share data) 2017 2016 2015 Weighted-average grant-date fair value per restricted stock $ 85.07 $ 77.68 $ 69.30 Fair value of restricted stock vested 131 276 174 Tax benefit related to restricted stock vested 76 76 50 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income from Continuing Operations before Income Taxes, Based on Tax Jurisdiction | The components of income before provision for income taxes, based on tax jurisdiction, are as follows: Fiscal Year (in millions) 2017 2016 2015 U.S. $ (234 ) $ 333 $ 639 International 4,836 4,003 2,847 Income before provision for income taxes $ 4,602 $ 4,336 $ 3,486 |
Provision for Income Taxes | The provision for income taxes consists of the following: Fiscal Year (in millions) 2017 2016 2015 Current tax expense: U.S. $ 614 $ 440 $ 1,128 International 840 835 502 Total current tax expense 1,454 1,275 1,630 Deferred tax (benefit) expense: U.S. (399 ) (67 ) (705 ) International (477 ) (410 ) (114 ) Net deferred tax benefit (876 ) (477 ) (819 ) Total provision for income taxes $ 578 $ 798 $ 811 |
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 28, 2017 April 29, 2016 Deferred tax assets: Net operating loss, capital loss, and credit carryforwards $ 6,800 $ 7,568 Other accrued liabilities 658 619 Accrued compensation 427 358 Pension and post-retirement benefits 456 530 Stock-based compensation 278 316 Other 308 341 Inventory 277 225 Federal and state benefit on uncertain tax positions 191 308 Unrealized loss on available-for-sale securities and derivative financial instruments — 107 Gross deferred tax assets 9,395 10,372 Valuation allowance (6,311 ) (7,032 ) Total deferred tax assets 3,084 3,340 Deferred tax liabilities: Intangible assets (4,943 ) (5,173 ) Basis impairment — (230 ) Realized loss on derivative financial instruments (112 ) (112 ) Other (74 ) (179 ) Accumulated depreciation (149 ) (189 ) Unrealized gain on available-for-sale securities and derivative financial instruments (18 ) — Outside basis difference of subsidiaries (112 ) — Total deferred tax liabilities (5,408 ) (5,883 ) Prepaid income taxes 475 365 Income tax receivables 218 529 Tax liabilities, net $ (1,631 ) $ (1,649 ) Reported as (after valuation allowance and jurisdictional netting): Prepaid expenses and other current assets $ 545 $ 697 Tax assets 1,509 1,383 Deferred tax liabilities (2,978 ) (3,729 ) Noncurrent liabilities held for sale (707 ) — Tax liabilities, net $ (1,631 ) $ (1,649 ) |
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 2017 2016 2015 U.S. federal statutory tax rate 35.0 % 35.0 % 35.0 % Increase (decrease) in tax rate resulting from: U.S. state taxes, net of federal tax benefit 1.0 0.9 0.8 Research and development credit (0.9 ) (1.2 ) (0.7 ) Domestic production activities (0.4 ) (0.3 ) (0.4 ) International (27.1 ) (23.4 ) (24.3 ) Puerto Rico Excise Tax (1.5 ) (1.6 ) (1.7 ) Impact of adjustments (1) 5.7 11.4 13.3 Valuation allowance release (1.0 ) (0.9 ) — Other, net 1.8 (1.5 ) 1.3 Effective tax rate 12.6 % 18.4 % 23.3 % (1) Adjustments include the impact of inventory step-up, impact of product technology upgrade commitment, special charge (gain), net, restructuring charges, net, certain litigation charges, acquisition-related items, amortization of intangible assets, loss on previously held forward starting interest rate swaps, debt tender premium, impact of acquisition on interest expense, and certain tax adjustments, net. |
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 2017 , 2016 , and 2015 is as follows: Fiscal Year (in millions) 2017 2016 2015 Gross unrecognized tax benefits at beginning of fiscal year $ 2,703 $ 2,860 $ 1,172 Gross increases: Prior year tax positions 147 36 331 Current year tax positions 75 202 231 Acquisitions 4 — 1,199 Gross decreases: Prior year tax positions (538 ) (116 ) (40 ) Settlements (467 ) (275 ) (33 ) Statute of limitation lapses (28 ) (4 ) — Gross unrecognized tax benefits at end of fiscal year 1,896 2,703 2,860 Cash advance paid in connection with proposed settlements — (384 ) (378 ) Gross unrecognized tax benefits at end of fiscal year, net of cash advance $ 1,896 $ 2,319 $ 2,482 |
Major Tax Jurisdictions Which Remain Subject to Examination | The major tax jurisdictions where the Company conducts business which remain subject to examination are as follows: Jurisdiction Earliest Year Open United States - federal and state 1997 Brazil 2012 Canada 2008 China 2009 Costa Rica 2013 Dominican Republic 2013 France 2011 Germany 2010 India 2001 Ireland 2011 Israel 2010 Italy 2005 Japan 2010 Luxembourg 2012 Mexico 2005 Puerto Rico 2009 Singapore 2011 Switzerland 2011 United Kingdom 2014 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Earnings Per Share [Abstract] | |
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) 2017 2016 2015 Numerator: Net income attributable to ordinary shareholders $ 4,028 $ 3,538 $ 2,675 Denominator: Basic – weighted average shares outstanding 1,378.9 1,409.6 1,095.5 Effect of dilutive securities: Employee stock options 9.0 12.2 9.1 Employee restricted stock units 3.4 4.0 4.3 Other 0.1 0.1 0.1 Diluted – weighted average shares outstanding 1,391.4 1,425.9 1,109.0 Basic earnings per share $ 2.92 $ 2.51 $ 2.44 Diluted earnings per share $ 2.89 $ 2.48 $ 2.41 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans | The change in benefit obligation and funded status of the Company’s U.S. and Non-U.S. pension benefits are as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Fiscal Year Fiscal Year (in millions) 2017 2016 2017 2016 Accumulated benefit obligation at end of year: $ 2,879 $ 2,757 $ 1,518 $ 1,367 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 3,048 $ 2,956 $ 1,535 $ 1,647 Service cost 117 120 70 81 Interest cost 109 122 26 31 Employee contributions — — 15 16 Plan curtailments and settlements — (28 ) 6 (133 ) Actuarial (gain) loss (22 ) (42 ) 182 (103 ) Benefits paid (80 ) (80 ) (43 ) (49 ) Special termination benefits 60 — — — Currency exchange rate changes and other — — (57 ) 45 Projected benefit obligation at end of year $ 3,232 $ 3,048 $ 1,734 $ 1,535 Change in plan assets: Fair value of plan assets at beginning of year $ 2,138 $ 2,204 $ 1,113 $ 1,189 Actual return on plan assets 238 (70 ) 109 (44 ) Employer contributions 183 112 76 93 Employee contributions — — 15 16 Plan settlements — (28 ) (1 ) (118 ) Benefits paid (80 ) (80 ) (43 ) (49 ) Currency exchange rate changes and other — — (34 ) 26 Fair value of plan assets at end of year $ 2,479 $ 2,138 $ 1,235 $ 1,113 Funded status at end of year: Fair value of plan assets $ 2,479 $ 2,138 $ 1,235 $ 1,113 Benefit obligations 3,232 3,048 1,734 1,535 Underfunded status of the plans (753 ) (910 ) (499 ) (422 ) Recognized liability $ (753 ) $ (910 ) $ (499 ) $ (422 ) Amounts recognized on the consolidated balance sheets consist of: Non-current assets $ — $ — $ 5 $ 20 Current liabilities (13 ) (12 ) (7 ) (8 ) Non-current liabilities (740 ) (898 ) (497 ) (434 ) Recognized liability $ (753 ) $ (910 ) $ (499 ) $ (422 ) Amounts recognized in accumulated other comprehensive loss: Prior service cost (benefit) $ 3 $ 4 $ (6 ) $ (14 ) Net actuarial loss 1,212 1,361 450 359 Ending balance $ 1,215 $ 1,365 $ 444 $ 345 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | U.S. and non-U.S. plans with accumulated benefit obligations in excess of plan assets consist of the following: Fiscal Year (in millions) 2017 2016 Accumulated benefit obligation $ 4,188 $ 3,922 Projected benefit obligation 4,677 4,333 Plan assets at fair value 3,454 2,981 |
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) 2017 2016 Projected benefit obligation $ 4,903 $ 4,362 Plan assets at fair value 3,646 3,009 |
Schedule of Net Benefit Costs | The net periodic benefit cost of the plans include the following components: U.S. Pension Benefits Non-U.S. Pension Benefits Fiscal Year Fiscal Year (in millions) 2017 2016 2015 2017 2016 2015 Service cost $ 117 $ 120 $ 104 $ 70 $ 81 $ 60 Interest cost 109 122 105 26 31 33 Expected return on plan assets (195 ) (180 ) (160 ) (48 ) (48 ) (41 ) Amortization of prior service cost 1 — — (1 ) — — Amortization of net actuarial loss 88 98 65 17 20 12 Settlement gain — (1 ) — — (10 ) — Special termination benefits 60 — — — — — Net periodic benefit cost $ 180 $ 159 $ 114 $ 64 $ 74 $ 64 |
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 2017 are as follows: (in millions) U.S. Pension Benefits Non-U.S. Pension Benefits Net actuarial (gain) loss $ (61 ) $ 121 Amortization of prior service cost (1 ) 1 Amortization of net actuarial loss (88 ) (17 ) Prior service cost — 8 Effect of exchange rates — (13 ) Total (gain) loss recognized in accumulated other comprehensive loss $ (150 ) $ 100 Total loss recognized in net periodic benefit cost and accumulated other comprehensive loss $ 30 $ 164 |
Schedule of Assumptions Used | The actuarial assumptions are as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Fiscal Year Fiscal Year 2017 2016 2015 2017 2016 2015 Critical assumptions – projected benefit obligation: Discount rate 3.70% - 4.30% 3.60% - 4.30% 4.20 % 0.45% - 11.40% 0.25% - 10.20% 1.88 % Rate of compensation increase 3.90 % 3.90 % 3.90 % 2.89 % 2.83 % 2.92 % Critical assumptions – net periodic benefit cost: Discount rate – benefit obligation 3.55% - 4.30% 4.20% - 4.80% 4.75 % 0.25% - 10.20% 0.80% - 9.00% 3.32 % Discount rate – service cost 3.60% - 4.45% 4.20% - 4.80% 4.75 % 0.05% - 10.20% 0.80% - 9.00% 3.32 % Discount rate – interest cost 2.90% - 3.80% 4.20% - 4.80% 4.75 % 0.30% - 10.20% 0.80% - 9.00% 3.32 % Expected return on plan assets 8.20 % 8.20 % 8.25 % 4.45 % 4.35 % 4.77 % Rate of compensation increase 3.90 % 3.90 % 3.90 % 2.83 % 2.92 % 2.80 % |
Schedule of Allocation of Plan Assets | The Company’s U.S. plans target asset allocations at April 28, 2017 , compared to the U.S. plans actual asset allocations at April 28, 2017 and April 29, 2016 by asset category, are as follows: U.S. Plans Target Allocation Actual Allocation April 28, 2017 April 28, 2017 April 29, 2016 Asset Category: Equity securities 40 % 45 % 43 % Debt securities 36 37 35 Other 24 18 22 Total 100 % 100 % 100 % |
Fair Value Measurements, Retirement Benefit Plan Assets | Fair Value at Fair Value Measurements Using Inputs Considered as Investments Measured at Net Asset Value (in millions) April 28, 2017 Level 1 Level 2 Level 3 Registered investment companies $ 1,191 $ — $ — $ — $ 1,191 Insurance contracts 44 — — 44 — $ 1,235 $ — $ — $ 44 $ 1,191 Fair Value at Fair Value Measurements Using Inputs Considered as Investments Measured at Net Asset Value (in millions) April 29, 2016 Level 1 Level 2 Level 3 Registered investment companies $ 1,037 $ — $ — $ — $ 1,037 Insurance contracts 76 — — 76 — $ 1,113 $ — $ — $ 76 $ 1,037 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 1 for discussion of the fair value measurement terms of Levels 1, 2, and 3. In accordance with authoritative guidance adopted in fiscal year 2017, certain investments for which the fair value is measured using the net asset value per share (or its equivalent) practical expedient are not presented within the fair value hierarchy. The fair value amounts presented for these investments are intended to permit reconciliation to the total fair value of plan assets at April 28, 2017 and April 29, 2016. The revised presentation has been applied retrospectively and fiscal year 2016 values have been reclassified to conform to classifications used in the current year. U.S. Pension Benefits Fair Value at Fair Value Measurements Using Inputs Considered as Investments Measured at Net Asset Value (in millions) April 28, 2017 Level 1 Level 2 Level 3 Short-term investments $ 168 $ 168 $ — $ — $ — U.S. government securities 167 138 29 — — Corporate debt securities 250 — 250 — — Equity commingled trusts 1,127 — — — 1,127 Fixed income commingled trusts 299 — — — 299 Partnership units 468 — — 468 — $ 2,479 $ 306 $ 279 $ 468 $ 1,426 Fair Value at Fair Value Measurements Using Inputs Considered as Investments Measured at Net Asset Value (in millions) April 29, 2016 Level 1 Level 2 Level 3 Short-term investments $ 127 $ 127 $ — $ — $ — U.S. government securities 146 137 9 — — Corporate debt securities 216 — 216 — — Equity commingled trusts 956 — — — 956 Fixed income commingled trusts 231 — — — 231 Partnership units 462 — — 462 — $ 2,138 $ 264 $ 225 $ 462 $ 1,187 |
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 Investments Insurance Contracts April 29, 2016 $ 76 $ 76 Total unrealized gains included in accumulated other comprehensive (loss) income 2 2 Purchases and sales, net (31 ) (31 ) Currency exchange rate changes (3 ) (3 ) April 28, 2017 $ 44 $ 44 (in millions) Total Level 3 Investments Insurance Contracts Partnership Units April 24, 2015 $ 76 $ 60 $ 16 Purchases and sales, net (2 ) 14 (16 ) Currency exchange rate changes 2 2 — April 29, 2016 $ 76 $ 76 $ — 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 Investments Partnership Units April 29, 2016 $ 462 $ 462 Total realized gains included in income 25 25 Total unrealized gains included in accumulated other comprehensive (loss) income 28 28 Purchases and sales, net (47 ) (47 ) April 28, 2017 $ 468 $ 468 (in millions) Total Level 3 Investments Corporate Debt Securities Partnership Units April 24, 2015 $ 473 $ 1 $ 472 Total realized gains included in income 10 — 10 Total unrealized losses included in accumulated other comprehensive (loss) income (144 ) (1 ) (143 ) Purchases and sales, net 123 — 123 April 29, 2016 $ 462 $ — $ 462 |
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 Benefits Non-U.S. Pension Benefits Fiscal Year Gross Payments Gross Payments 2018 $ 101 $ 44 2019 110 42 2020 121 43 2021 131 46 2022 143 50 2023 – 2027 901 298 Total $ 1,507 $ 523 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
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 28, 2017 are: (in millions) Fiscal Year Capitalized Leases Operating Leases 2018 $ 6 $ 215 2019 4 158 2020 4 110 2021 3 70 2022 3 41 Thereafter 8 52 Total minimum lease payments $ 28 $ 646 Less amounts representing interest (5 ) N/A Present value of net minimum lease payments $ 23 N/A |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Other Comprehensive Income (Loss), before Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | The following table provides changes in AOCI, net of tax and by component. (in millions) Unrealized Gain (Loss) on Available-for-Sale Securities Cumulative Translation Adjustments Net Change in Retirement Obligations Unrealized Gain (Loss) on Derivative Financial Instruments Total Accumulated Other Comprehensive (Loss) Income April 24, 2015 $ 14 $ (277 ) $ (1,131 ) $ 210 $ (1,184 ) Other comprehensive (loss) income before reclassifications (107 ) (197 ) (141 ) (94 ) (539 ) Reclassifications (14 ) — 75 (206 ) (145 ) Other comprehensive (loss) income (121 ) (197 ) (66 ) (300 ) (684 ) April 29, 2016 $ (107 ) $ (474 ) $ (1,197 ) $ (90 ) $ (1,868 ) Other comprehensive (loss) income before reclassifications 52 (978 ) (17 ) 233 (710 ) Reclassifications (14 ) — 85 (106 ) (35 ) Other comprehensive (loss) income 38 (978 ) 68 127 (745 ) April 28, 2017 $ (69 ) $ (1,452 ) $ (1,129 ) $ 37 $ (2,613 ) |
Quarterly Financial Data (una49
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Data | (in millions, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year Net sales 2017 $ 7,166 $ 7,345 $ 7,283 $ 7,916 $ 29,710 2016 7,274 7,058 6,934 7,567 28,833 Gross profit 2017 $ 4,905 $ 5,019 $ 5,015 $ 5,480 $ 20,419 2016 4,818 4,876 4,793 5,204 19,691 Net income 2017 $ 929 $ 1,111 $ 820 $ 1,164 $ 4,024 2016 820 520 1,095 1,104 3,538 Net income attributable to Medtronic 2017 $ 929 $ 1,115 $ 821 $ 1,163 $ 4,028 2016 820 520 1,095 1,104 3,538 Basic earnings per share 2017 $ 0.67 $ 0.81 $ 0.60 $ 0.85 2.92 2016 0.58 0.37 0.78 0.79 2.51 Diluted earnings per share 2017 $ 0.66 $ 0.80 $ 0.59 $ 0.84 2.89 2016 0.57 0.36 0.77 0.78 2.48 |
Segment and Geographic Inform50
Segment and Geographic Information (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Net sales and earnings before other adjustments by reportable segment are as follows: Fiscal Year (in millions) 2017 2016 2015 Cardiac and Vascular Group $ 10,498 $ 10,196 $ 9,361 Minimally Invasive Therapies Group 9,919 9,563 2,387 Restorative Therapies Group 7,366 7,210 6,751 Diabetes Group 1,927 1,864 1,762 Total $ 29,710 $ 28,833 $ 20,261 |
Reconciliation of Income from Operations Before Income Taxes from Segments to Consolidated | Fiscal Year (in millions) 2017 2016 2015 Cardiac and Vascular Group $ 4,134 $ 3,986 $ 3,836 Minimally Invasive Therapies Group 3,434 3,373 775 Restorative Therapies Group 2,868 2,671 2,445 Diabetes Group 690 667 663 Reportable segments' EBITA before other adjustments (1) 11,126 10,697 7,719 Impact of inventory step-up (38 ) (226 ) (623 ) Impact of product technology upgrade commitment — — (74 ) Special charge (gain), net (100 ) (70 ) 38 Restructuring charges, net (2) (373 ) (299 ) (252 ) Certain litigation charges (300 ) (26 ) (42 ) Acquisition-related items (2) (230 ) (283 ) (550 ) Amortization of intangible assets (1,980 ) (1,931 ) (733 ) Centralized distribution costs (1,543 ) (1,177 ) (794 ) Interest expense, net (728 ) (955 ) (280 ) Corporate (1,232 ) (1,394 ) (923 ) Income before provision for income taxes $ 4,602 $ 4,336 $ 3,486 (1) Represents earnings by segment before interest expense, net , amortization of intangible assets, corporate charges, and centralized distribution costs. (2) Restructuring charges, net and acquisition-related items within this table include the impact of amounts recognized within cost of products sold in the consolidated statements of income. |
Reconciliation of Assets from Segments to Consolidated | The following table presents the Company’s assets by reportable segment: (in millions) April 28, 2017 April 29, 2016 Cardiac and Vascular Group $ 15,192 $ 13,563 Minimally Invasive Therapies Group (1) 49,249 52,227 Restorative Therapies Group 15,441 14,564 Diabetes Group 2,641 2,592 Total assets of reportable segments 82,523 82,946 Corporate 17,293 16,698 Total Assets $ 99,816 $ 99,644 (1) Assets of $6.3 billion classified as held for sale were included within Minimally Invasive Therapies Group at April 28, 2017 . |
Schedule of Revenue from External Customers and Property, Plant, and Equipment, Net, by Geographical Areas | The following table presents net sales to external customers and property, plant, and equipment, net by geographic region: Net sales to external customers Property, plant, and equipment, net (in millions) 2017 2016 2015 April 28, 2017 April 29, 2016 Americas (1) $ 17,939 $ 17,578 $ 12,125 $ 3,270 $ 3,728 EMEA (2) 6,739 6,700 5,064 709 708 Asia Pacific 3,443 3,060 2,059 192 220 Greater China 1,589 1,495 1,013 190 185 Consolidated $ 29,710 $ 28,833 $ 20,261 $ 4,361 $ 4,841 (1) The U.S., which is included in the Americas, had net sales to external customers of $16.7 billion , $ 16.4 billion , and $ 11.3 billion in fiscal years 2017 , 2016 , and 2015 , respectively. Property, plant, and equipment, net includes $2.5 billion and $3.3 billion in the U.S. in fiscal years 2017 and 2016 , respectively. (2) EMEA consists of the following regions: Europe, Middle East, and Africa. Sales to Ireland were insignificant during all periods presented. Property, plant, and equipment, net includes $171 million and $169 million in Ireland in fiscal years 2017 and 2016 , respectively. |
Guarantor Financial Informati51
Guarantor Financial Information (Tables) | 12 Months Ended |
Apr. 28, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Consolidating Statement of Comprehensive Income | Consolidating Statement of Comprehensive Income Fiscal Year Ended April 28, 2017 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ 1,296 $ — $ 29,708 $ (1,294 ) $ 29,710 Costs and expenses: Cost of products sold — 932 — 9,676 (1,317 ) 9,291 Research and development expense — 636 — 1,557 — 2,193 Selling, general, and administrative expense 12 1,163 — 8,536 — 9,711 Special charge (gain), net — 100 — — — 100 Restructuring charges, net — 114 — 249 — 363 Certain litigation charges — — — 300 — 300 Acquisition-related items — 133 — 87 — 220 Amortization of intangible assets — 11 — 1,969 — 1,980 Other expense (income), net 18 (2,954 ) — 3,158 — 222 Operating (loss) profit (30 ) 1,161 — 4,176 23 5,330 Interest income — (250 ) (649 ) (1,065 ) 1,598 (366 ) Interest expense 113 1,652 62 865 (1,598 ) 1,094 Interest expense (income), net 113 1,402 (587 ) (200 ) — 728 Equity in net (income) loss of subsidiaries (4,163 ) (2,484 ) (3,576 ) — 10,223 — Income (loss) from operations before income taxes 4,020 2,243 4,163 4,376 (10,200 ) 4,602 Provision (benefit) for income taxes (8 ) (1 ) — 587 — 578 Net income 4,028 2,244 4,163 3,789 (10,200 ) 4,024 Net loss attributable to noncontrolling interests — — — 4 — 4 Net income attributable to Medtronic 4,028 2,244 4,163 3,793 (10,200 ) 4,028 Other comprehensive (loss) income, net of tax (745 ) 111 (745 ) (928 ) 1,563 (744 ) Other comprehensive loss attributable to non-controlling interests — — — 3 — 3 Total comprehensive income (loss) attributable to Medtronic $ 3,283 $ 2,355 $ 3,418 $ 2,864 $ (8,637 ) $ 3,283 Consolidating Statement of Comprehensive Income Fiscal Year Ended April 29, 2016 Medtronic Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ 1,411 $ — $ 28,832 $ (1,410 ) $ 28,833 Costs and expenses: Cost of products sold — 991 — 9,561 (1,410 ) 9,142 Research and development expense — 627 — 1,597 — 2,224 Selling, general, and administrative expense 10 991 — 8,468 — 9,469 Special charge (gain), net — 70 — — — 70 Restructuring charges, net — 17 — 273 — 290 Certain litigation charges — — — 26 — 26 Acquisition-related items — 135 — 148 — 283 Amortization of intangible assets — 12 — 1,919 — 1,931 Other expense (income), net 112 (2,329 ) — 2,324 — 107 Operating (loss) profit (122 ) 897 — 4,516 — 5,291 Interest income — (237 ) (706 ) (448 ) 960 (431 ) Interest expense 25 1,906 10 405 (960 ) 1,386 Interest expense (income), net 25 1,669 (696 ) (43 ) — 955 Equity in net (income) loss of subsidiaries (3,676 ) (2,447 ) (2,980 ) — 9,103 — Income (loss) from operations before income taxes 3,529 1,675 3,676 4,559 (9,103 ) 4,336 Provision (benefit) for income taxes (9 ) (96 ) — 903 — 798 Net income 3,538 1,771 3,676 3,656 (9,103 ) 3,538 Other comprehensive (loss) income, net of tax (684 ) (493 ) (684 ) (673 ) 1,850 (684 ) Total comprehensive income (loss) $ 2,854 $ 1,278 $ 2,992 $ 2,983 $ (7,253 ) $ 2,854 Consolidating Statement of Comprehensive Income Fiscal Year Ended April 24, 2015 Medtronic Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ 1,261 $ — $ 20,261 $ (1,261 ) $ 20,261 Costs and expenses: Cost of products sold — 895 — 6,659 (1,245 ) 6,309 Research and development expense — 552 — 1,088 — 1,640 Selling, general, and administrative expense 1 857 — 6,046 — 6,904 Special charge (gain), net — 100 — (138 ) — (38 ) Restructuring charges, net — 7 — 230 — 237 Certain litigation charges — — — 42 — 42 Acquisition-related items — 312 — 238 — 550 Amortization of intangible assets — 11 — 722 — 733 Other expense (income), net 103 (1,618 ) — 1,633 — 118 Operating (loss) profit (104 ) 145 — 3,741 (16 ) 3,766 Interest income — (56 ) (170 ) (387 ) 227 (386 ) Interest expense — 762 — 131 (227 ) 666 Interest expense (income), net — 706 (170 ) (256 ) — 280 Equity in net (income) loss of subsidiaries (2,790 ) (5,500 ) (2,620 ) — 10,910 — Income (loss) from operations before income taxes 2,686 4,939 2,790 3,997 (10,926 ) 3,486 Provision (benefit) for income taxes 11 (44 ) — 844 — 811 Net income 2,675 4,983 2,790 3,153 (10,926 ) 2,675 Other comprehensive income (loss), net of tax (587 ) (542 ) (587 ) (232 ) 1,361 (587 ) Total comprehensive income (loss) $ 2,088 $ 4,441 $ 2,203 $ 2,921 $ (9,565 ) $ 2,088 Consolidating Statement of Comprehensive Income Fiscal Year Ended April 28, 2017 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ — $ — $ 29,710 $ — $ 29,710 Costs and expenses: Cost of products sold — — — 9,291 — 9,291 Research and development expense — — — 2,193 — 2,193 Selling, general, and administrative expense 12 1 2 9,696 — 9,711 Special charge (gain), net — — — 100 — 100 Restructuring charges, net — — — 363 — 363 Certain litigation charges — — — 300 — 300 Acquisition-related items — — — 220 — 220 Amortization of intangible assets — — — 1,980 — 1,980 Other expense (income), net 18 1 4 199 — 222 Operating (loss) profit (30 ) (2 ) (6 ) 5,368 — 5,330 Interest income — (82 ) (656 ) (433 ) 805 (366 ) Interest expense 113 104 62 1,620 (805 ) 1,094 Interest expense (income), net 113 22 (594 ) 1,187 — 728 Equity in net (income) loss of subsidiaries (4,163 ) (2,329 ) (3,575 ) — 10,067 — Income (loss) from operations before income taxes 4,020 2,305 4,163 4,181 (10,067 ) 4,602 Provision (benefit) for income taxes (8 ) — — 586 — 578 Net income 4,028 2,305 4,163 3,595 (10,067 ) 4,024 Net loss attributable to noncontrolling interests — — — 4 — 4 Net income attributable to Medtronic 4,028 2,305 4,163 3,599 (10,067 ) 4,028 Other comprehensive (loss) income, net of tax (745 ) (84 ) (745 ) (744 ) 1,574 (744 ) Other comprehensive loss attributable to non-controlling interests — — — 3 — 3 Total comprehensive income (loss) attributable to Medtronic $ 3,283 $ 2,221 $ 3,418 $ 2,854 $ (8,493 ) $ 3,283 Consolidating Statement of Comprehensive Income Fiscal Year Ended April 29, 2016 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ — $ — $ 28,833 $ — $ 28,833 Costs and expenses: Cost of products sold — — — 9,142 — 9,142 Research and development expense — — — 2,224 — 2,224 Selling, general, and administrative expense 10 1 3 9,455 — 9,469 Special charge (gain), net — — — 70 — 70 Restructuring charges, net — — — 290 — 290 Certain litigation charges — — — 26 — 26 Acquisition-related items — — — 283 — 283 Amortization of intangible assets — — — 1,931 — 1,931 Other expense (income), net 112 1 (18 ) 12 — 107 Operating (loss) profit (122 ) (2 ) 15 5,400 — 5,291 Interest income — (434 ) (710 ) (464 ) 1,177 (431 ) Interest expense 25 138 10 2,390 (1,177 ) 1,386 Interest expense (income), net 25 (296 ) (700 ) 1,926 — 955 Equity in net (income) loss of subsidiaries (3,676 ) (2,043 ) (2,961 ) — 8,680 — Income (loss) from operations before income taxes 3,529 2,337 3,676 3,474 (8,680 ) 4,336 Provision (benefit) for income taxes (9 ) — — 807 — 798 Net income 3,538 2,337 3,676 2,667 (8,680 ) 3,538 Other comprehensive (loss) income, net of tax (684 ) (102 ) (684 ) (684 ) 1,470 (684 ) Total comprehensive income (loss) $ 2,854 $ 2,235 $ 2,992 $ 1,983 $ (7,210 ) $ 2,854 Consolidating Statement of Comprehensive Income Fiscal Year Ended April 24, 2015 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ — $ — $ 20,261 $ — $ 20,261 Costs and expenses: Cost of products sold — — — 6,309 — 6,309 Research and development expense — — — 1,640 — 1,640 Selling, general, and administrative expense 1 — 21 6,882 — 6,904 Special charge (gain), net — — — (38 ) — (38 ) Restructuring charges, net — — — 237 — 237 Certain litigation charges — — — 42 — 42 Acquisition-related items — — — 550 — 550 Amortization of intangible assets — — — 733 — 733 Other expense (income), net 103 — 26 (11 ) — 118 Operating (loss) profit (104 ) — (47 ) 3,917 — 3,766 Interest income — (149 ) (170 ) (386 ) 319 (386 ) Interest expense — 29 — 956 (319 ) 666 Interest expense (income), net — (120 ) (170 ) 570 — 280 Equity in net (income) loss of subsidiaries (2,790 ) 1,085 (2,667 ) — 4,372 — Income (loss) from operations before income taxes 2,686 (965 ) 2,790 3,347 (4,372 ) 3,486 Provision (benefit) for income taxes 11 — — 800 — 811 Net income 2,675 (965 ) 2,790 2,547 (4,372 ) 2,675 Other comprehensive (loss) income, net of tax (587 ) 200 (587 ) (587 ) 974 (587 ) Total comprehensive income (loss) $ 2,088 $ (765 ) $ 2,203 $ 1,960 $ (3,398 ) $ 2,088 |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet April 28, 2017 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total ASSETS Current assets: Cash and cash equivalents $ — $ 45 $ 5 $ 4,917 $ — $ 4,967 Investments — — — 8,741 — 8,741 Accounts receivable, net — — — 5,591 — 5,591 Inventories, net — 155 — 3,361 (178 ) 3,338 Intercompany receivable 63 — — 12,618 (12,681 ) — Prepaid expenses and other current assets 10 227 — 1,628 — 1,865 Current assets held for sale — — — 371 — 371 Total current assets 73 427 5 37,227 (12,859 ) 24,873 Property, plant and equipment, net — 1,311 — 3,050 — 4,361 Goodwill — — — 38,515 — 38,515 Other intangible assets, net — 20 — 23,387 — 23,407 Tax assets — 727 — 782 — 1,509 Investment in subsidiaries 55,833 71,931 52,618 — (180,382 ) — Intercompany loans receivable 3,000 12,162 16,114 32,774 (64,050 ) — Other assets — 434 — 798 — 1,232 Noncurrent assets held for sale — — — 5,919 — 5,919 Total assets $ 58,906 $ 87,012 $ 68,737 $ 142,452 $ (257,291 ) $ 99,816 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ 5,000 $ 901 $ 1,619 $ — $ 7,520 Accounts payable — 304 — 1,427 — 1,731 Intercompany payable 12 12,669 — — (12,681 ) — Accrued compensation 9 734 — 1,117 — 1,860 Accrued income taxes 13 — — 620 — 633 Other accrued expenses — 352 4 2,086 — 2,442 Current liabilities held for sale — — — 34 — 34 Total current liabilities 34 19,059 905 6,903 (12,681 ) 14,220 Long-term debt — 21,782 1,842 2,297 — 25,921 Accrued compensation and retirement benefits — 1,120 — 521 — 1,641 Accrued income taxes 10 1,658 — 737 — 2,405 Intercompany loans payable 8,568 13,151 17,160 25,171 (64,050 ) — Deferred tax liabilities — — — 2,978 — 2,978 Other liabilities — 153 — 1,362 — 1,515 Noncurrent liabilities held for sale — — — 720 — 720 Total liabilities 8,612 56,923 19,907 40,689 (76,731 ) 49,400 Shareholders’ equity 50,294 30,089 48,830 101,641 (180,560 ) 50,294 Noncontrolling interests — — — 122 — 122 Total equity 50,294 30,089 48,830 101,763 (180,560 ) 50,416 Total liabilities and equity $ 58,906 $ 87,012 $ 68,737 $ 142,452 $ (257,291 ) $ 99,816 Condensed Consolidating Balance Sheet April 29, 2016 Medtronic Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total ASSETS Current assets: Cash and cash equivalents $ — $ 55 $ — $ 2,821 $ — $ 2,876 Investments — — — 9,758 — 9,758 Accounts receivable, net — — — 5,562 — 5,562 Inventories, net — 162 — 3,511 (200 ) 3,473 Intercompany receivable 403 141,368 — 162,278 (304,049 ) — Prepaid expenses and other current assets 24 271 — 1,636 — 1,931 Total current assets 427 141,856 — 185,566 (304,249 ) 23,600 Property, plant and equipment, net — 1,139 — 3,702 — 4,841 Goodwill — — — 41,500 — 41,500 Other intangible assets, net — 31 — 26,868 — 26,899 Tax assets — 690 — 693 — 1,383 Investment in subsidiaries 52,608 68,903 49,698 — (171,209 ) — Intercompany loans receivable 3,000 8,884 10,203 18,140 (40,227 ) — Other assets — 506 — 915 — 1,421 Total assets $ 56,035 $ 222,009 $ 59,901 $ 277,384 $ (515,685 ) $ 99,644 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ 500 $ — $ 493 $ — $ 993 Accounts payable — 288 — 1,421 — 1,709 Intercompany payable — 151,687 — 152,362 (304,049 ) — Accrued compensation 32 616 — 1,064 — 1,712 Accrued income taxes 11 — — 555 — 566 Other accrued expenses 1 243 — 1,941 — 2,185 Total current liabilities 44 153,334 — 157,836 (304,049 ) 7,165 Long-term debt — 26,646 — 3,463 — 30,109 Accrued compensation and retirement benefits — 1,258 — 501 — 1,759 Accrued income taxes 10 1,422 — 1,471 — 2,903 Intercompany loans payable 3,918 10,128 14,297 11,884 (40,227 ) — Deferred tax liabilities — — — 3,729 — 3,729 Other liabilities — 202 — 1,714 — 1,916 Total liabilities 3,972 192,990 14,297 180,598 (344,276 ) 47,581 Total equity 52,063 29,019 45,604 96,786 (171,409 ) 52,063 Total liabilities and equity $ 56,035 $ 222,009 $ 59,901 $ 277,384 $ (515,685 ) $ 99,644 Condensed Consolidating Balance Sheet April 28, 2017 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total ASSETS Current assets: Cash and cash equivalents $ — $ 33 $ 5 $ 4,929 $ — $ 4,967 Investments — — — 8,741 — 8,741 Accounts receivable, net — — — 5,591 — 5,591 Inventories, net — — — 3,338 — 3,338 Intercompany receivable 63 — 60 12 (135 ) — Prepaid expenses and other current assets 10 — — 1,855 — 1,865 Current assets held for sale — — — 371 — 371 Total current assets 73 33 65 24,837 (135 ) 24,873 Property, plant and equipment, net — — — 4,361 — 4,361 Goodwill — — — 38,515 — 38,515 Other intangible assets, net — — — 23,407 — 23,407 Tax assets — — — 1,509 — 1,509 Investment in subsidiaries 55,833 31,033 51,294 — (138,160 ) — Intercompany loans receivable 3,000 2,978 17,383 17,260 (40,621 ) — Other assets — — — 1,232 — 1,232 Noncurrent assets held for sale — — — 5,919 — 5,919 Total assets $ 58,906 $ 34,044 $ 68,742 $ 117,040 $ (178,916 ) $ 99,816 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ 1,176 $ 901 $ 5,443 $ — $ 7,520 Accounts payable — — — 1,731 — 1,731 Intercompany payable 12 — — 123 (135 ) — Accrued compensation 9 — — 1,851 — 1,860 Accrued income taxes 13 — — 620 — 633 Other accrued expenses — 23 8 2,411 — 2,442 Current liabilities held for sale — — — 34 — 34 Total current liabilities 34 1,199 909 12,213 (135 ) 14,220 Long-term debt — 2,133 1,842 21,946 — 25,921 Accrued compensation and retirement benefits — — — 1,641 — 1,641 Accrued income taxes 10 — — 2,395 — 2,405 Intercompany loans payable 8,568 1,369 17,161 13,523 (40,621 ) — Deferred tax liabilities — — — 2,978 — 2,978 Other liabilities — — — 1,515 — 1,515 Noncurrent liabilities held for sale — — — 720 — 720 Total liabilities 8,612 4,701 19,912 56,931 (40,756 ) 49,400 Shareholders’ equity 50,294 29,343 48,830 59,987 (138,160 ) 50,294 Noncontrolling interests — — — 122 — 122 Total equity 50,294 29,343 48,830 60,109 (138,160 ) 50,416 Total liabilities and equity $ 58,906 $ 34,044 $ 68,742 $ 117,040 $ (178,916 ) $ 99,816 Condensed Consolidating Balance Sheet April 29, 2016 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total ASSETS Current assets: Cash and cash equivalents $ — $ 208 $ — $ 2,668 $ — $ 2,876 Investments — — — 9,758 — 9,758 Accounts receivable, net — — — 5,562 — 5,562 Inventories, net — — — 3,473 — 3,473 Intercompany receivable 403 — 61 — (464 ) — Prepaid expenses and other current assets 24 — — 1,907 — 1,931 Total current assets 427 208 61 23,368 (464 ) 23,600 Property, plant and equipment, net — — 1 4,840 — 4,841 Goodwill — — — 41,500 — 41,500 Other intangible assets, net — — — 26,899 — 26,899 Tax assets — — — 1,383 — 1,383 Investment in subsidiaries 52,608 36,476 48,375 — (137,459 ) — Intercompany loans receivable 3,000 8,253 11,465 27,724 (50,442 ) — Other assets — — — 1,421 — 1,421 Total assets $ 56,035 $ 44,937 $ 59,902 $ 127,135 $ (188,365 ) $ 99,644 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ — $ — $ 993 $ — $ 993 Accounts payable — — — 1,709 — 1,709 Intercompany payable — — — 464 (464 ) — Accrued compensation 32 — — 1,680 — 1,712 Accrued income taxes 11 — — 555 — 566 Other accrued expenses 1 24 — 2,160 — 2,185 Total current liabilities 44 24 — 7,561 (464 ) 7,165 Long-term debt — 3,382 — 26,727 — 30,109 Accrued compensation and retirement benefits — — — 1,759 — 1,759 Accrued income taxes 10 — — 2,893 — 2,903 Intercompany loans payable 3,918 14,689 14,298 17,537 (50,442 ) — Deferred tax liabilities — — — 3,729 — 3,729 Other liabilities — — — 1,916 — 1,916 Total liabilities 3,972 18,095 14,298 62,122 (50,906 ) 47,581 Total equity 52,063 26,842 45,604 65,013 (137,459 ) 52,063 Total liabilities and equity $ 56,035 $ 44,937 $ 59,902 $ 127,135 $ (188,365 ) $ 99,644 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Fiscal Year Ended April 28, 2017 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by operating activities $ 842 $ 1,902 $ 302 $ 4,721 $ (887 ) $ 6,880 Investing Activities: Acquisitions, net of cash acquired — (940 ) — (384 ) — (1,324 ) Additions to property, plant, and equipment — (369 ) — (885 ) — (1,254 ) Purchases of investments — — — (4,533 ) 162 (4,371 ) Sales and maturities of investments — 210 — 5,308 (162 ) 5,356 Net (increase) decrease in intercompany loans receivable — (3,278 ) (5,911 ) (4,624 ) 13,813 — Capital contributions paid — (248 ) — — 248 — Other investing activities, net — — — 22 — 22 Net cash (used in) provided by investing activities — (4,625 ) (5,911 ) (5,096 ) 14,061 (1,571 ) Financing Activities: Acquisition-related contingent consideration — — — (69 ) — (69 ) Change in current debt obligations, net — — 901 5 — 906 Repayment of short-term borrowings (maturities greater than 90 days) — — — (2 ) — (2 ) Proceeds from short-term borrowings (maturities greater than 90 days) — — — 12 — 12 Issuance of long-term debt — 150 1,850 140 — 2,140 Payments on long-term debt — (500 ) — (363 ) — (863 ) Dividends to shareholders (2,376 ) — — — — (2,376 ) Issuance of ordinary shares 428 — — — — 428 Repurchase of ordinary shares (3,544 ) — — — — (3,544 ) Net intercompany loan borrowings (repayments) 4,650 3,023 2,863 3,277 (13,813 ) — Intercompany dividends paid — — — (887 ) 887 — Capital contributions received — — — 248 (248 ) — Other financing activities — 40 — 45 — 85 Net cash (used in) provided by financing activities (842 ) 2,713 5,614 2,406 (13,174 ) (3,283 ) Effect of exchange rate changes on cash and cash equivalents — — — 65 — 65 Net change in cash and cash equivalents — (10 ) 5 2,096 — 2,091 Cash and cash equivalents at beginning of period — 55 — 2,821 — 2,876 Cash and cash equivalents at end of period $ — $ 45 $ 5 $ 4,917 $ — $ 4,967 Condensed Consolidating Statement of Cash Flows Fiscal Year Ended April 29, 2016 Medtronic Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by operating activities $ 297 $ 402 $ 696 $ 4,635 $ (812 ) $ 5,218 Investing Activities: Acquisitions, net of cash acquired — (526 ) — (687 ) — (1,213 ) Additions to property, plant, and equipment — (334 ) — (712 ) — (1,046 ) Purchases of investments — — — (5,406 ) — (5,406 ) Sales and maturities of investments — — — 9,924 — 9,924 Net (increase) decrease in intercompany loans receivable — (2,368 ) (203 ) (7,921 ) 10,492 — Capital contributions paid — (11 ) (4,959 ) (4,900 ) 9,870 — Other investing activities, net — — — (14 ) — (14 ) Net cash (used in) provided by investing activities — (3,239 ) (5,162 ) (9,716 ) 20,362 2,245 Financing Activities: Acquisition-related contingent consideration — — — (22 ) — (22 ) Change in current debt obligations, net — — — 7 — 7 Repayment of short-term borrowings (maturities greater than 90 days) — — (139 ) — — (139 ) Proceeds from short-term borrowings (maturities greater than 90 days) — — 139 — — 139 Payments on long-term debt — (2,988 ) — (2,144 ) — (5,132 ) Dividends to shareholders (2,139 ) — — — — (2,139 ) Issuance of ordinary shares 491 — — — — 491 Repurchase of ordinary shares (2,830 ) — — — — (2,830 ) Net intercompany loan borrowings (repayments) 3,918 (91 ) 4,296 2,369 (10,492 ) — Intercompany dividends paid — — — (812 ) 812 — Capital contributions received — 4,900 — 4,970 (9,870 ) — Other financing activities — — — 82 — 82 Net cash (used in) provided by financing activities (560 ) 1,821 4,296 4,450 (19,550 ) (9,543 ) Effect of exchange rate changes on cash and cash equivalents — — — 113 — 113 Net change in cash and cash equivalents (263 ) (1,016 ) (170 ) (518 ) — (1,967 ) Cash and cash equivalents at beginning of period 263 1,071 170 3,339 — 4,843 Cash and cash equivalents at end of period $ — $ 55 $ — $ 2,821 $ — $ 2,876 Condensed Consolidating Statement of Cash Flows Fiscal Year Ended April 24, 2015 Medtronic Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by operating activities $ 26 $ 1,479 $ 170 $ 3,640 $ (413 ) $ 4,902 Investing Activities: Acquisitions, net of cash acquired (9,700 ) (65 ) — (5,119 ) — (14,884 ) Additions to property, plant, and equipment — (187 ) — (384 ) — (571 ) Purchases of investments — — — (7,582 ) — (7,582 ) Sales and maturities of investments — — — 5,890 — 5,890 Net (increase) decrease in intercompany loans receivable — (16,996 ) — 53 16,943 — Other investing activities, net — — — 89 — 89 Net cash (used in) provided by investing activities (9,700 ) (17,248 ) — (7,053 ) 16,943 (17,058 ) Financing Activities: Acquisition-related contingent consideration — — — (85 ) — (85 ) Change in current debt obligations, net — — — (1 ) — (1 ) 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 — 19,942 — — — 19,942 Payments on long-term debt — (1,268 ) — — — (1,268 ) Dividends to shareholders (435 ) (902 ) — — — (1,337 ) Issuance of ordinary shares 172 477 — — — 649 Repurchase of ordinary shares (300 ) (1,620 ) — — — (1,920 ) Net intercompany loan borrowings (repayments) 10,500 (53 ) — 6,496 (16,943 ) — Intercompany dividends paid — — — (413 ) 413 — Other financing activities — — — (31 ) — (31 ) Net cash (used in) provided by financing activities 9,937 16,576 — 5,966 (16,530 ) 15,949 Effect of exchange rate changes on cash and cash equivalents — — — (353 ) — (353 ) Net change in cash and cash equivalents 263 807 170 2,200 — 3,440 Cash and cash equivalents at beginning of period — 264 — 1,139 — 1,403 Cash and cash equivalents at end of period $ 263 $ 1,071 $ 170 $ 3,339 $ — $ 4,843 Condensed Consolidating Statement of Cash Flows Fiscal Year Ended April 28, 2017 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by operating activities $ 842 $ 1,904 $ 302 $ 5,829 $ (1,997 ) $ 6,880 Investing Activities: Acquisitions, net of cash acquired — — — (1,324 ) — (1,324 ) Additions to property, plant, and equipment — — — (1,254 ) — (1,254 ) Purchases of investments — — — (4,371 ) — (4,371 ) Sales and maturities of investments — — — 5,356 — 5,356 Net (increase) decrease in intercompany loans receivable — 5,275 (5,911 ) 3,956 (3,320 ) — Capital contributions paid — (537 ) — — 537 — Other investing activities, net — — — 22 — 22 Net cash (used in) provided by investing activities — 4,738 (5,911 ) 2,385 (2,783 ) (1,571 ) Financing Activities: Acquisition-related contingent consideration — — — (69 ) — (69 ) Change in current debt obligations, net — — 901 5 — 906 Repayment of short-term borrowings (maturities greater than 90 days) — — — (2 ) — (2 ) Proceeds from short-term borrowings (maturities greater than 90 days) — — — 12 — 12 Issuance of long-term debt — — 1,850 290 — 2,140 Payments on long-term debt — — — (863 ) — (863 ) Dividends to shareholders (2,376 ) — — — — (2,376 ) Issuance of ordinary shares 428 — — — — 428 Repurchase of ordinary shares (3,544 ) — — — — (3,544 ) Net intercompany loan borrowings (repayments) 4,650 (6,817 ) 2,863 (4,016 ) 3,320 — Intercompany dividend paid — — — (1,997 ) 1,997 — Capital contributions received — — — 537 (537 ) — Other financing activities — — — 85 — 85 Net cash (used in) provided by financing activities (842 ) (6,817 ) 5,614 (6,018 ) 4,780 (3,283 ) Effect of exchange rate changes on cash and cash equivalents — — — 65 — 65 Net change in cash and cash equivalents — (175 ) 5 2,261 — 2,091 Cash and cash equivalents at beginning of period — 208 — 2,668 — 2,876 Cash and cash equivalents at end of period $ — $ 33 $ 5 $ 4,929 $ — $ 4,967 Condensed Consolidating Statement of Cash Flows Fiscal Year Ended April 29, 2016 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by operating activities $ 297 $ 4,208 $ 604 $ 4,114 $ (4,005 ) $ 5,218 Investing Activities: Acquisitions, net of cash acquired — — — (1,266 ) 53 (1,213 ) Additions to property, plant, and equipment — — — (1,046 ) — (1,046 ) Purchases of investments — — — (5,406 ) — (5,406 ) Sales and maturities of investments — — — 9,924 — 9,924 Net (increase) decrease in intercompany loans receivable — (8,193 ) (164 ) (3,302 ) 11,659 — Sale of subsidiaries — — 53 — (53 ) — Capital contributions paid — (720 ) (4,959 ) — 5,679 — Other investing activities, net — — — (14 ) — (14 ) Net cash (used in) provided by investing activities — (8,913 ) (5,070 ) (1,110 ) 17,338 2,245 Financing Activities: Acquisition-related contingent consideration — — — (22 ) — (22 ) Change in current debt obligations, net — — — 7 — 7 Repayment of short-term borrowings (maturities greater than 90 days) — — (139 ) — — (139 ) Proceeds from short-term borrowings (maturities greater than 90 days) — — 139 — — 139 Payments on long-term debt — (2,121 ) — (3,011 ) — (5,132 ) Dividends to shareholders (2,139 ) — — — — (2,139 ) Issuance of ordinary shares 491 — — — — 491 Repurchase of ordinary shares (2,830 ) — — — — (2,830 ) Net intercompany loan borrowings (repayments) 3,918 6,306 4,296 (2,861 ) (11,659 ) — Intercompany dividend paid — — — (4,005 ) 4,005 — Capital contributions received — — — 5,679 (5,679 ) — Other financing activities — — — 82 — 82 Net cash (used in) provided by financing activities (560 ) 4,185 4,296 (4,131 ) (13,333 ) (9,543 ) Effect of exchange rate changes on cash and cash equivalents — — — 113 — 113 Net change in cash and cash equivalents (263 ) (520 ) (170 ) (1,014 ) — (1,967 ) Cash and cash equivalents at beginning of period 263 728 170 3,682 — 4,843 Cash and cash equivalents at end of period $ — $ 208 $ — $ 2,668 $ — $ 2,876 Condensed Consolidating Statement of Cash Flows Fiscal Year Ended April 24, 2015 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by operating activities $ 26 $ 1,238 $ 142 $ 4,596 $ (1,100 ) $ 4,902 Investing Activities: Acquisitions, net of cash acquired (9,700 ) 440 — (5,624 ) — (14,884 ) Additions to property, plant, and equipment — — (1 ) (570 ) — (571 ) Purchases of investments — — — (7,582 ) — (7,582 ) Sales and maturities of investments — — — 5,890 — 5,890 Net (increase) decrease in intercompany loans receivable — (59 ) 29 (10,626 ) 10,656 — Capital contributions paid — (937 ) — — 937 — Other investing activities, net — — — 89 — 89 Net cash (used in) provided by investing activities (9,700 ) (556 ) 28 (18,423 ) 11,593 (17,058 ) Financing Activities: Acquisition-related contingent consideration — — — (85 ) — (85 ) Change in current debt obligations, net — — — (1 ) — (1 ) 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 — — — 19,942 — 19,942 Payments on long-term debt — (51 ) — (1,217 ) — (1,268 ) Dividends to shareholders (435 ) — — (902 ) — (1,337 ) Issuance of ordinary shares 172 — — 477 — 649 Repurchase of ordinary shares (300 ) — — (1,620 ) — (1,920 ) Net intercompany loan borrowings (repayments) 10,500 97 — 59 (10,656 ) — Intercompany dividend paid — — — (1,100 ) 1,100 — Capital contributions received — — — 937 (937 ) — Other financing activities — — — (31 ) — (31 ) Net cash (used in) provided by financing activities 9,937 46 — 16,459 (10,493 ) 15,949 Effect of exchange rate changes on cash and cash equivalents — — — (353 ) — (353 ) Net change in cash and cash equivalents 263 728 170 2,279 — 3,440 Cash and cash equivalents at beginning of period — — — 1,403 — 1,403 Cash and cash equivalents at end of period $ 263 $ 728 $ 170 $ 3,682 $ — $ 4,843 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Debt issuance costs | $ 128 | $ 138 | |
Other Information [Abstract] | |||
Shipping and handling costs | 370 | 316 | $ 284 |
Tax benefit from exercise of stock-based awards | $ 92 | 82 | $ 81 |
Minimum | |||
Intangible Assets | |||
Intangible assets, estimated useful life | 3 years | ||
Maximum | |||
Intangible Assets | |||
Intangible assets, estimated useful life | 20 years | ||
Accounting Standards Update 2015-03 | Assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Debt issuance costs | (138) | ||
Accounting Standards Update 2015-03 | Liabilities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Debt issuance costs | $ 138 |
Acquisitions and Acquisition-53
Acquisitions and Acquisition-Related Items , Additional Information (Details) - USD ($) $ in Millions | Aug. 23, 2016 | Aug. 05, 2016 | Aug. 31, 2016 | Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 38,515 | $ 41,500 | $ 40,530 | |||
Repayments of debt | $ 203 | |||||
Current debt obligations | 7,520 | 993 | ||||
Acquisition-related charges | 230 | 283 | 550 | |||
Contingent consideration | 246 | 377 | 264 | |||
Other liabilities | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration | 180 | 311 | ||||
Other accrued expenses | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration | 66 | 66 | ||||
Professional services and integration costs | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition-related charges | 225 | 219 | 275 | |||
Accelerated or incremental stock compensation expense | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition-related charges | 23 | $ 58 | 189 | |||
Incremental officer and director excise tax | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition-related charges | $ 69 | |||||
Cost of products sold | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition-related charges | 10 | |||||
HeartWare International, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | $ 1,072 | |||||
Finite-lived intangibles | 625 | |||||
Goodwill | 427 | |||||
Long-term debt | 245 | |||||
Current debt obligations | 42 | |||||
Sales attributable to acquired entity since acquisition date | 155 | |||||
HeartWare International, Inc. | Customer-related and technology-related | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangibles | $ 602 | |||||
Finite-lived intangible asset, useful life | 15 years | |||||
HeartWare International, Inc. | Tradenames | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangibles | $ 23 | |||||
Finite-lived intangible asset, useful life | 5 years | |||||
Smith & Nephew's Gynecology Business | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | $ 350 | |||||
Finite-lived intangibles | 167 | |||||
Goodwill | 180 | |||||
Long-term debt | 0 | |||||
Sales attributable to acquired entity since acquisition date | $ 45 | |||||
Smith & Nephew's Gynecology Business | Customer-related and technology-related | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangibles | $ 167 | |||||
Finite-lived intangible asset, useful life | 13 years |
Acquisitions and Acquisition-54
Acquisitions and Acquisition-Related Items , Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Apr. 28, 2017 | Aug. 23, 2016 | Aug. 05, 2016 | Apr. 29, 2016 | Apr. 24, 2015 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 38,515 | $ 41,500 | $ 40,530 | ||
Total | |||||
Business Acquisition [Line Items] | |||||
Other current assets | 374 | ||||
Property, plant, and equipment | 21 | ||||
Other intangible assets | 857 | ||||
Goodwill | 732 | ||||
Other assets | 71 | ||||
Total assets acquired | 2,055 | ||||
Current liabilities | 153 | ||||
Deferred tax liabilities | 13 | ||||
Long-term debt | 245 | ||||
Other liabilities | 10 | ||||
Total liabilities assumed | 421 | ||||
Net assets acquired | 1,634 | ||||
HeartWare International, Inc. | |||||
Business Acquisition [Line Items] | |||||
Other current assets | $ 351 | ||||
Property, plant, and equipment | 14 | ||||
Other intangible assets | 625 | ||||
Goodwill | 427 | ||||
Other assets | 55 | ||||
Total assets acquired | 1,472 | ||||
Current liabilities | 143 | ||||
Deferred tax liabilities | 6 | ||||
Long-term debt | 245 | ||||
Other liabilities | 6 | ||||
Total liabilities assumed | 400 | ||||
Net assets acquired | $ 1,072 | ||||
Smith & Nephew's Gynecology Business | |||||
Business Acquisition [Line Items] | |||||
Other current assets | $ 0 | ||||
Property, plant, and equipment | 3 | ||||
Other intangible assets | 167 | ||||
Goodwill | 180 | ||||
Other assets | 0 | ||||
Total assets acquired | 350 | ||||
Current liabilities | 0 | ||||
Deferred tax liabilities | 0 | ||||
Long-term debt | 0 | ||||
Other liabilities | 0 | ||||
Total liabilities assumed | 0 | ||||
Net assets acquired | $ 350 | ||||
All Other | |||||
Business Acquisition [Line Items] | |||||
Other current assets | 23 | ||||
Property, plant, and equipment | 4 | ||||
Other intangible assets | 65 | ||||
Goodwill | 125 | ||||
Other assets | 16 | ||||
Total assets acquired | 233 | ||||
Current liabilities | 10 | ||||
Deferred tax liabilities | 7 | ||||
Long-term debt | 0 | ||||
Other liabilities | 4 | ||||
Total liabilities assumed | 21 | ||||
Net assets acquired | $ 212 |
Acquisitions and Acquisition-55
Acquisitions and Acquisition-Related Items , Contingent Consideration (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 28, 2017 | Apr. 29, 2016 | |
Fair Value Inputs | ||
Contingent consideration | $ 377 | $ 264 |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions | ||
Beginning Balance | 377 | 264 |
Purchase price contingent consideration | 28 | 149 |
Contingent consideration payments | (76) | (22) |
Change in fair value of contingent consideration | (83) | (14) |
Ending Balance | 246 | $ 377 |
Fair Value, Measurements, Recurring | Level 3 | Revenue-based payments | ||
Fair Value Inputs | ||
Contingent consideration | 106 | |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions | ||
Ending Balance | $ 106 | |
Fair Value, Measurements, Recurring | Level 3 | Revenue-based payments | Discounted cash flow | Minimum | ||
Fair Value Inputs | ||
Discount rate | 11.00% | |
Probability of payment | 30.00% | |
Fair Value, Measurements, Recurring | Level 3 | Revenue-based payments | Discounted cash flow | Maximum | ||
Fair Value Inputs | ||
Discount rate | 32.50% | |
Probability of payment | 100.00% | |
Fair Value, Measurements, Recurring | Level 3 | Product development-based payments | ||
Fair Value Inputs | ||
Contingent consideration | $ 140 | |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions | ||
Ending Balance | $ 140 | |
Fair Value, Measurements, Recurring | Level 3 | Product development-based payments | Discounted cash flow | Minimum | ||
Fair Value Inputs | ||
Discount rate | 0.30% | |
Probability of payment | 75.00% | |
Fair Value, Measurements, Recurring | Level 3 | Product development-based payments | Discounted cash flow | Maximum | ||
Fair Value Inputs | ||
Discount rate | 5.50% | |
Probability of payment | 100.00% |
Assets and Liabilities Held f56
Assets and Liabilities Held for Sale (Details) - Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency Business - Disposal Group, Held-for-sale, Not Discontinued Operations - USD ($) | Apr. 28, 2017 | Apr. 29, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventories | $ 371,000,000 | |
Property, plant, and equipment, net | 689,000,000 | |
Goodwill | 2,910,000,000 | |
Other intangible assets, net | 2,320,000,000 | |
Total assets held for sale | 6,290,000,000 | $ 0 |
Other accrued expenses | 34,000,000 | |
Accrued compensation and retirement benefits | 12,000,000 | |
Deferred tax liabilities | 707,000,000 | |
Other liabilities | 1,000,000 | |
Total liabilities held for sale | $ 754,000,000 | $ 0 |
Restructuring Charges (Details)
Restructuring Charges (Details) - Cost Synergies Initiative - USD ($) $ in Millions | 12 Months Ended | |
Apr. 28, 2017 | Apr. 29, 2016 | |
Changes in Restructuring Reserves | ||
Balance | $ 250 | $ 143 |
Charges | 368 | 332 |
Cash payments | (232) | (184) |
Settled non cash | (27) | (23) |
Reversal of excess accrual | (68) | (18) |
Balance | 291 | 250 |
Employee Termination Costs | ||
Changes in Restructuring Reserves | ||
Balance | 213 | 136 |
Charges | 287 | 248 |
Cash payments | (179) | (153) |
Settled non cash | 0 | 0 |
Reversal of excess accrual | (60) | (18) |
Balance | 261 | 213 |
Asset Write-downs | ||
Changes in Restructuring Reserves | ||
Balance | 0 | 0 |
Charges | 27 | 23 |
Cash payments | 0 | 0 |
Settled non cash | (27) | (23) |
Reversal of excess accrual | 0 | 0 |
Balance | 0 | 0 |
Other Costs | ||
Changes in Restructuring Reserves | ||
Balance | 37 | 7 |
Charges | 54 | 61 |
Cash payments | (53) | (31) |
Settled non cash | 0 | 0 |
Reversal of excess accrual | (8) | 0 |
Balance | $ 30 | $ 37 |
Restructuring Charges , Additio
Restructuring Charges , Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 28, 2017 | Apr. 29, 2016 | |
Restructuring Charges | ||
Special termination benefits | $ 73 | |
Cost Synergies Initiative | ||
Restructuring Charges | ||
Expected cost synergies | 850 | |
Restructuring charges, including incremental defined benefit pension and post-retirement related expenses | 441 | |
Reversal of excess accrual | (68) | $ (18) |
Settled non cash | 27 | 23 |
Restructuring charges | 368 | 332 |
Cost Synergies Initiative | Asset write-downs | ||
Restructuring Charges | ||
Reversal of excess accrual | 0 | 0 |
Settled non cash | 27 | 23 |
Restructuring charges | 27 | 23 |
Cost Synergies Initiative | Impairment of property, plant and equipment | ||
Restructuring Charges | ||
Settled non cash | 17 | 14 |
Cost Synergies Initiative | Inventory write-offs and discontinued product lines | Cost of products sold | ||
Restructuring Charges | ||
Settled non cash | $ 10 | $ 9 |
Special Charge (Details)
Special Charge (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Gain (Loss) on Investments [Line Items] | |||
Gain recognized | $ 138 | ||
Gain on sale of product line | 41 | ||
Gain on sale of equity method investment | 97 | ||
Charitable contribution | $ 100 | $ 100 | |
Special (gains) charges, net | |||
Gain (Loss) on Investments [Line Items] | |||
Impairment losses recognized | $ 70 |
Financial Instruments , Investm
Financial Instruments , Investments by Category and Related Balance Sheet Presentation, and AFS in Continuous Loss Position (Details) - USD ($) $ in Millions | Apr. 28, 2017 | Apr. 29, 2016 |
Available-for-sale securities: | ||
Cost | $ 9,008 | $ 10,000 |
Unrealized Gains | 127 | 147 |
Unrealized Losses | (246) | (338) |
Fair Value | 8,889 | 9,809 |
Trading securities: | ||
Cost | 65 | |
Unrealized Gains | 15 | |
Unrealized Losses | (1) | |
Fair Value | 79 | |
Cost method, equity method, and other investments: | ||
Cost | 589 | 506 |
Total investments | ||
Cost | 9,597 | 10,571 |
Unrealized Gains | 127 | 162 |
Unrealized Losses | (246) | (339) |
Fair Value | 8,889 | 9,888 |
AFS Continuous Unrealized Loss Position | ||
Less than 12 Months, Fair Value | 2,749 | 1,975 |
Less than 12 Months, Unrealized Losses | (43) | (64) |
More than 12 Months, Fair Value | 1,312 | 1,940 |
More than 12 Months, Unrealized Losses | (203) | (275) |
U.S. government and agency securities | ||
AFS Continuous Unrealized Loss Position | ||
Less than 12 Months, Fair Value | 896 | 308 |
Less than 12 Months, Unrealized Losses | (15) | (4) |
More than 12 Months, Fair Value | 0 | 67 |
More than 12 Months, Unrealized Losses | 0 | (5) |
Marketable equity securities | ||
AFS Continuous Unrealized Loss Position | ||
Less than 12 Months, Fair Value | 14 | 45 |
Less than 12 Months, Unrealized Losses | (3) | (11) |
More than 12 Months, Fair Value | 2 | 0 |
More than 12 Months, Unrealized Losses | (1) | 0 |
Corporate debt securities | ||
AFS Continuous Unrealized Loss Position | ||
Less than 12 Months, Fair Value | 1,263 | 756 |
Less than 12 Months, Unrealized Losses | (19) | (18) |
More than 12 Months, Fair Value | 46 | 136 |
More than 12 Months, Unrealized Losses | (4) | (6) |
Mortgage-backed securities | ||
AFS Continuous Unrealized Loss Position | ||
Less than 12 Months, Fair Value | 276 | 196 |
Less than 12 Months, Unrealized Losses | (4) | (5) |
More than 12 Months, Fair Value | 95 | 92 |
More than 12 Months, Unrealized Losses | (12) | (5) |
Other asset-backed securities | ||
AFS Continuous Unrealized Loss Position | ||
Less than 12 Months, Fair Value | 127 | |
Less than 12 Months, Unrealized Losses | (1) | |
More than 12 Months, Fair Value | 0 | |
More than 12 Months, Unrealized Losses | 0 | |
Debt funds | ||
AFS Continuous Unrealized Loss Position | ||
Less than 12 Months, Fair Value | 173 | 670 |
Less than 12 Months, Unrealized Losses | (1) | (26) |
More than 12 Months, Fair Value | 1,125 | 1,601 |
More than 12 Months, Unrealized Losses | (183) | (256) |
Auction rate securities | ||
AFS Continuous Unrealized Loss Position | ||
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Unrealized Losses | 0 | 0 |
More than 12 Months, Fair Value | 44 | 44 |
More than 12 Months, Unrealized Losses | (3) | (3) |
Level 1 | ||
Available-for-sale securities: | ||
Cost | 671 | 867 |
Unrealized Gains | 51 | 35 |
Unrealized Losses | (9) | (12) |
Fair Value | 713 | 890 |
Trading securities: | ||
Cost | 65 | |
Unrealized Gains | 15 | |
Unrealized Losses | (1) | |
Fair Value | 79 | |
Level 1 | U.S. government and agency securities | ||
Available-for-sale securities: | ||
Cost | 613 | 792 |
Unrealized Gains | 2 | 14 |
Unrealized Losses | (5) | (1) |
Fair Value | 610 | 805 |
Level 1 | Marketable equity securities | ||
Available-for-sale securities: | ||
Cost | 58 | 75 |
Unrealized Gains | 49 | 21 |
Unrealized Losses | (4) | (11) |
Fair Value | 103 | 85 |
Level 1 | Exchange-traded funds | ||
Trading securities: | ||
Cost | 65 | |
Unrealized Gains | 15 | |
Unrealized Losses | (1) | |
Fair Value | 79 | |
Level 2 | ||
Available-for-sale securities: | ||
Cost | 7,792 | 8,351 |
Unrealized Gains | 76 | 112 |
Unrealized Losses | (228) | (289) |
Fair Value | 7,640 | 8,174 |
Level 2 | U.S. government and agency securities | ||
Available-for-sale securities: | ||
Cost | 860 | 902 |
Unrealized Gains | 0 | 2 |
Unrealized Losses | (10) | 0 |
Fair Value | 850 | 904 |
Level 2 | Corporate debt securities | ||
Available-for-sale securities: | ||
Cost | 4,643 | 3,935 |
Unrealized Gains | 62 | 85 |
Unrealized Losses | (23) | (24) |
Fair Value | 4,682 | 3,996 |
Level 2 | Mortgage-backed securities | ||
Available-for-sale securities: | ||
Cost | 766 | 1,016 |
Unrealized Gains | 9 | 17 |
Unrealized Losses | (16) | (18) |
Fair Value | 759 | 1,015 |
Level 2 | Non-U.S. government and agency securities | ||
Available-for-sale securities: | ||
Cost | 49 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 49 | |
Level 2 | Other asset-backed securities | ||
Available-for-sale securities: | ||
Cost | 228 | 192 |
Unrealized Gains | 1 | 3 |
Unrealized Losses | (1) | 0 |
Fair Value | 228 | 195 |
Level 2 | Debt funds | ||
Available-for-sale securities: | ||
Cost | 1,246 | 2,306 |
Unrealized Gains | 4 | 5 |
Unrealized Losses | (178) | (247) |
Fair Value | 1,072 | 2,064 |
Level 3 | ||
Available-for-sale securities: | ||
Cost | 48 | 48 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3) | (3) |
Fair Value | 45 | 45 |
Cost method, equity method, and other investments: | ||
Cost | 589 | 506 |
Level 3 | Corporate debt securities | ||
Available-for-sale securities: | ||
Cost | 1 | 1 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 1 | 1 |
Level 3 | Debt funds | ||
Available-for-sale securities: | ||
Cost | 497 | 734 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (6) | (34) |
Fair Value | 491 | 700 |
Level 3 | Auction rate securities | ||
Available-for-sale securities: | ||
Cost | 47 | 47 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3) | (3) |
Fair Value | 44 | 44 |
Investments | ||
Available-for-sale securities: | ||
Fair Value | 8,741 | 9,679 |
Trading securities: | ||
Fair Value | 79 | |
Cost method, equity method, and other investments: | ||
Cost | 0 | 0 |
Total investments | ||
Fair Value | 8,741 | 9,758 |
Investments | Level 1 | ||
Available-for-sale securities: | ||
Fair Value | 610 | 805 |
Trading securities: | ||
Fair Value | 79 | |
Investments | Level 1 | U.S. government and agency securities | ||
Available-for-sale securities: | ||
Fair Value | 610 | 805 |
Investments | Level 1 | Marketable equity securities | ||
Available-for-sale securities: | ||
Fair Value | 0 | 0 |
Investments | Level 1 | Exchange-traded funds | ||
Trading securities: | ||
Fair Value | 79 | |
Investments | Level 2 | ||
Available-for-sale securities: | ||
Fair Value | 7,640 | 8,174 |
Investments | Level 2 | U.S. government and agency securities | ||
Available-for-sale securities: | ||
Fair Value | 850 | 904 |
Investments | Level 2 | Corporate debt securities | ||
Available-for-sale securities: | ||
Fair Value | 4,682 | 3,996 |
Investments | Level 2 | Mortgage-backed securities | ||
Available-for-sale securities: | ||
Fair Value | 759 | 1,015 |
Investments | Level 2 | Non-U.S. government and agency securities | ||
Available-for-sale securities: | ||
Fair Value | 49 | |
Investments | Level 2 | Other asset-backed securities | ||
Available-for-sale securities: | ||
Fair Value | 228 | 195 |
Investments | Level 2 | Debt funds | ||
Available-for-sale securities: | ||
Fair Value | 1,072 | 2,064 |
Investments | Level 3 | ||
Available-for-sale securities: | ||
Fair Value | 0 | 0 |
Cost method, equity method, and other investments: | ||
Cost | 0 | 0 |
Investments | Level 3 | Corporate debt securities | ||
Available-for-sale securities: | ||
Fair Value | 0 | 0 |
Investments | Level 3 | Debt funds | ||
Available-for-sale securities: | ||
Investments measured at net asset value | 491 | 700 |
Investments | Level 3 | Auction rate securities | ||
Available-for-sale securities: | ||
Fair Value | 0 | 0 |
Other Assets | ||
Available-for-sale securities: | ||
Fair Value | 148 | 130 |
Trading securities: | ||
Fair Value | 0 | |
Cost method, equity method, and other investments: | ||
Cost | 589 | 506 |
Total investments | ||
Fair Value | 737 | 636 |
Other Assets | Marketable equity securities | ||
Available-for-sale securities: | ||
Fair Value | 103 | 85 |
Other Assets | Level 1 | ||
Available-for-sale securities: | ||
Fair Value | 103 | 85 |
Trading securities: | ||
Fair Value | 0 | |
Other Assets | Level 1 | U.S. government and agency securities | ||
Available-for-sale securities: | ||
Fair Value | 0 | 0 |
Other Assets | Level 1 | Marketable equity securities | ||
Available-for-sale securities: | ||
Fair Value | 103 | 85 |
Other Assets | Level 1 | Exchange-traded funds | ||
Trading securities: | ||
Fair Value | 0 | |
Other Assets | Level 2 | ||
Available-for-sale securities: | ||
Fair Value | 0 | 0 |
Other Assets | Level 2 | U.S. government and agency securities | ||
Available-for-sale securities: | ||
Fair Value | 0 | 0 |
Other Assets | Level 2 | Corporate debt securities | ||
Available-for-sale securities: | ||
Fair Value | 0 | 0 |
Other Assets | Level 2 | Mortgage-backed securities | ||
Available-for-sale securities: | ||
Fair Value | 0 | 0 |
Other Assets | Level 2 | Non-U.S. government and agency securities | ||
Available-for-sale securities: | ||
Fair Value | 0 | |
Other Assets | Level 2 | Other asset-backed securities | ||
Available-for-sale securities: | ||
Fair Value | 0 | 0 |
Other Assets | Level 2 | Debt funds | ||
Available-for-sale securities: | ||
Fair Value | 0 | 0 |
Other Assets | Level 3 | ||
Available-for-sale securities: | ||
Fair Value | 45 | 45 |
Cost method, equity method, and other investments: | ||
Cost | 589 | 506 |
Other Assets | Level 3 | Corporate debt securities | ||
Available-for-sale securities: | ||
Fair Value | 1 | 1 |
Other Assets | Level 3 | Debt funds | ||
Available-for-sale securities: | ||
Investments measured at net asset value | 0 | 0 |
Other Assets | Level 3 | Auction rate securities | ||
Available-for-sale securities: | ||
Fair Value | $ 44 | $ 44 |
Financial Instruments , Unobser
Financial Instruments , Unobservable Inputs, and Items Measured at Fair Value on a Recurring Basis that Used Significant Unobservable Inputs (Level 3) (Details) - Fair Value, Measurements, Recurring - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Apr. 28, 2017 | Apr. 29, 2016 | |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ||
Beginning balance | $ 45 | $ 106 |
Total unrealized gains included in other comprehensive income | 0 | (3) |
Settlements | 0 | (58) |
Ending balance | 45 | 45 |
Corporate debt securities | ||
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ||
Beginning balance | 1 | 1 |
Total unrealized gains included in other comprehensive income | 0 | 0 |
Settlements | 0 | 0 |
Ending balance | 1 | 1 |
Auction rate securities | ||
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ||
Beginning balance | 44 | 105 |
Total unrealized gains included in other comprehensive income | 0 | (3) |
Settlements | 0 | (58) |
Ending balance | $ 44 | $ 44 |
Discounted cash flow | Auction rate securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Years to principal recovery | 3 years | |
Illiquidity premium | 6.00% | |
Minimum | Discounted cash flow | Auction rate securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Years to principal recovery | 2 years | |
Maximum | Discounted cash flow | Auction rate securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Years to principal recovery | 12 years |
Financial Instruments , Activit
Financial Instruments , Activity Related to the Company's Investment Portfolio and Available-for-sale Debt Securities Contractual Maturities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
AFS Debt Maturities | |||
Due in one year or less | $ 1,110 | ||
Due after one year through five years | 2,855 | ||
Due after five years through 10 years | 3,177 | ||
Due after 10 years | 81 | ||
Total debt securities | 7,223 | ||
Special (gains) charges, net | |||
AFS Gross Realized Gain (Loss) | |||
Impairment losses recognized | $ (70) | ||
Debt | |||
AFS Gross Realized Gain (Loss) | |||
Proceeds from sales | 5,224 | 9,881 | $ 5,640 |
Gross realized gains | 75 | 36 | 33 |
Gross realized losses | (56) | (53) | (19) |
Impairment losses recognized | 0 | 0 | 0 |
Equity | |||
AFS Gross Realized Gain (Loss) | |||
Proceeds from sales | 132 | 42 | 250 |
Gross realized gains | 49 | 38 | 164 |
Gross realized losses | 0 | 0 | 0 |
Impairment losses recognized | (30) | (114) | (29) |
Equity | Other expense, net | |||
AFS Gross Realized Gain (Loss) | |||
Gross realized gains | $ 20 | $ 9 | 41 |
Equity | Special (gains) charges, net | |||
AFS Gross Realized Gain (Loss) | |||
Gross realized gains | $ 97 |
Financial Instruments , Additio
Financial Instruments , Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Schedule of Investments [Line Items] | |||
Reductions for available-for-sale securities sold | $ 0 | ||
Investments in marketable equity securities | 8,889 | $ 9,809 | |
Aggregate carrying amount of equity and other securities without a quoted market price that are accounted for using the cost or equity method | 589 | 506 | |
Other expense, net | |||
Schedule of Investments [Line Items] | |||
Cost-method investment impairment charges | 30 | 23 | $ 7 |
Special (gains) charges, net | |||
Schedule of Investments [Line Items] | |||
Cost-method investment impairment charges | 70 | ||
Other assets | |||
Schedule of Investments [Line Items] | |||
Investments in marketable equity securities | 148 | 130 | |
Aggregate carrying amount of equity and other securities without a quoted market price that are accounted for using the cost or equity method | 589 | 506 | |
Debt | |||
Schedule of Investments [Line Items] | |||
Credit loss portion of other-than-temporary impairments | 0 | 0 | |
Reductions for available-for-sale securities sold | 0 | ||
Marketable equity securities | Other expense, net | |||
Schedule of Investments [Line Items] | |||
Impairment of investments | 20 | $ 7 | |
Marketable equity securities | Other assets | |||
Schedule of Investments [Line Items] | |||
Investments in marketable equity securities | $ 103 | $ 85 |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets , Changes in Goodwill (Details) - USD ($) | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 41,500,000,000 | $ 40,530,000,000 | |
Other adjustments, net | (31,000,000) | ||
Currency adjustment, net | (807,000,000) | (248,000,000) | |
Goodwill reclassified to noncurrent assets held for sale | (2,910,000,000) | ||
Goodwill, ending balance | 38,515,000,000 | 41,500,000,000 | $ 40,530,000,000 |
Goodwill impairment | 0 | 0 | 0 |
Cardiac and Vascular Group | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 6,243,000,000 | 5,855,000,000 | |
Other adjustments, net | 0 | ||
Currency adjustment, net | (49,000,000) | (26,000,000) | |
Goodwill reclassified to noncurrent assets held for sale | 0 | ||
Goodwill, ending balance | 6,651,000,000 | 6,243,000,000 | 5,855,000,000 |
Minimally Invasive Therapies Group | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 23,784,000,000 | 23,399,000,000 | |
Other adjustments, net | (34,000,000) | ||
Currency adjustment, net | (705,000,000) | (191,000,000) | |
Goodwill reclassified to noncurrent assets held for sale | (2,910,000,000) | ||
Goodwill, ending balance | 20,411,000,000 | 23,784,000,000 | 23,399,000,000 |
Restorative Therapies Group | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 9,620,000,000 | 9,424,000,000 | |
Other adjustments, net | 3,000,000 | ||
Currency adjustment, net | (53,000,000) | (32,000,000) | |
Goodwill reclassified to noncurrent assets held for sale | 0 | ||
Goodwill, ending balance | 9,600,000,000 | 9,620,000,000 | 9,424,000,000 |
Diabetes Group | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 1,853,000,000 | 1,852,000,000 | |
Other adjustments, net | 0 | ||
Currency adjustment, net | 0 | 1,000,000 | |
Goodwill reclassified to noncurrent assets held for sale | 0 | ||
Goodwill, ending balance | 1,853,000,000 | 1,853,000,000 | $ 1,852,000,000 |
Other acquisitions | |||
Goodwill [Roll Forward] | |||
Goodwill as a result of acquisitions | 732,000,000 | 856,000,000 | |
Other acquisitions | Cardiac and Vascular Group | |||
Goodwill [Roll Forward] | |||
Goodwill as a result of acquisitions | 457,000,000 | 393,000,000 | |
Other acquisitions | Minimally Invasive Therapies Group | |||
Goodwill [Roll Forward] | |||
Goodwill as a result of acquisitions | 242,000,000 | 264,000,000 | |
Other acquisitions | Restorative Therapies Group | |||
Goodwill [Roll Forward] | |||
Goodwill as a result of acquisitions | 33,000,000 | 199,000,000 | |
Other acquisitions | Diabetes Group | |||
Goodwill [Roll Forward] | |||
Goodwill as a result of acquisitions | $ 0 | 0 | |
Covidien plc | |||
Goodwill [Roll Forward] | |||
Goodwill as a result of acquisitions | 393,000,000 | ||
Covidien plc | Cardiac and Vascular Group | |||
Goodwill [Roll Forward] | |||
Goodwill as a result of acquisitions | 21,000,000 | ||
Covidien plc | Minimally Invasive Therapies Group | |||
Goodwill [Roll Forward] | |||
Goodwill as a result of acquisitions | 346,000,000 | ||
Covidien plc | Restorative Therapies Group | |||
Goodwill [Roll Forward] | |||
Goodwill as a result of acquisitions | 26,000,000 | ||
Covidien plc | Diabetes Group | |||
Goodwill [Roll Forward] | |||
Goodwill as a result of acquisitions | $ 0 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets , Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 29,172,000,000 | $ 30,919,000,000 | |
Accumulated Amortization | (6,359,000,000) | (4,741,000,000) | |
Impairment of finite-lived intangible assets | 0 | 0 | $ 0 |
Impairment of indefinite-lived intangible assets | 0 | 0 | |
IPR&D | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived Intangible Assets | 594,000,000 | 721,000,000 | |
Impairment of indefinite-lived intangible assets | $ 5,000,000 | ||
Customer-related | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 16,862,000,000 | 18,596,000,000 | |
Accumulated Amortization | (2,166,000,000) | (1,331,000,000) | |
Purchased technology and patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 11,461,000,000 | 11,397,000,000 | |
Accumulated Amortization | (3,690,000,000) | (2,976,000,000) | |
Trademarks and tradenames | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 772,000,000 | 854,000,000 | |
Accumulated Amortization | (461,000,000) | (403,000,000) | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 77,000,000 | 72,000,000 | |
Accumulated Amortization | $ (42,000,000) | $ (31,000,000) |
Goodwill and Other Intangible66
Goodwill and Other Intangible Assets , Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 1,980 | $ 1,931 | $ 733 |
2,018 | 1,809 | ||
2,019 | 1,725 | ||
2,020 | 1,680 | ||
2,021 | 1,666 | ||
2,022 | $ 1,624 |
Financing Arrangements , Additi
Financing Arrangements , Additional Information (Details) - USD ($) | Jan. 26, 2015 | Apr. 29, 2016 | Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 |
Debt Instrument [Line Items] | |||||
Current debt obligations | $ 993,000,000 | $ 7,520,000,000 | $ 993,000,000 | ||
Loss on debt extinguishment | 0 | 163,000,000 | $ 0 | ||
Estimated fair value of senior notes | 29,800,000,000 | 30,400,000,000 | 29,800,000,000 | ||
Principal value of senior notes | 27,400,000,000 | 28,900,000,000 | 27,400,000,000 | ||
$3.5 Billion Revolving Credit Facility | Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 3,500,000,000 | ||||
Debt term | 5 years | ||||
Additional borrowing capacity | $ 500,000,000 | ||||
Length of extension from maturity date | 1 year | ||||
Committed line of credit outstanding | 0 | $ 0 | 0 | ||
Senior Unsecured Term Loan Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt term | 3 years | ||||
Proceeds from debt issuance | $ 3,000,000,000 | ||||
Senior notes | |||||
Debt Instrument [Line Items] | |||||
Redemption of senior notes, face amount | 2,700,000,000 | $ 2,700,000,000 | |||
Redemption of senior notes, consideration | 3,000,000,000 | ||||
Loss on debt extinguishment | 163,000,000 | ||||
Interest expense, acceleration of net losses on derivatives for terminations | $ 20,000,000 | ||||
Senior notes | 4.125 percent ten-year 2011 senior notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 4.125% | 4.125% | 4.125% | ||
Debt term | 10 years | ||||
Face value | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||
Senior notes | 3.125 percent ten-year 2012 senior notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 3.125% | 3.125% | 3.125% | ||
Debt term | 10 years | ||||
Face value | $ 675,000,000 | $ 675,000,000 | $ 675,000,000 | ||
Commercial paper | |||||
Debt Instrument [Line Items] | |||||
Weighted average original maturity | 39 days | 49 days | |||
Weighted average interest rate | 0.57% | 0.89% | 0.57% | ||
Commercial paper | Commercial paper | |||||
Debt Instrument [Line Items] | |||||
Commercial paper, maximum borrowing capacity | $ 3,500,000,000 | ||||
Current debt obligations | $ 0 | $ 901,000,000 | $ 0 | ||
Bank borrowings | |||||
Debt Instrument [Line Items] | |||||
Current debt obligations | $ 387,000,000 | $ 396,000,000 | $ 387,000,000 | ||
Bank borrowings | Minimum | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 0.17% | ||||
Bank borrowings | Maximum | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 0.18% |
Financing Arrangements , Short-
Financing Arrangements , Short-term Debt (Details) - USD ($) | 12 Months Ended | |
Apr. 28, 2017 | Apr. 29, 2016 | |
Short-term Debt [Line Items] | ||
Current debt obligations | $ 7,520,000,000 | $ 993,000,000 |
Debt premium, net | $ 26,000,000 | 0 |
Three-year term loan | ||
Short-term Debt [Line Items] | ||
Debt term | 3 years | |
Current debt obligations | $ 3,000,000,000 | 0 |
Bank borrowings | ||
Short-term Debt [Line Items] | ||
Current debt obligations | 396,000,000 | 387,000,000 |
Capital lease obligations | ||
Short-term Debt [Line Items] | ||
Current debt obligations | 5,000,000 | 106,000,000 |
Commercial paper | Commercial paper | ||
Short-term Debt [Line Items] | ||
Current debt obligations | $ 901,000,000 | 0 |
Senior notes | 6.000 percent ten-year 2008 CIFSA senior notes | ||
Short-term Debt [Line Items] | ||
Stated interest rate | 6.00% | |
Debt term | 10 years | |
Current debt obligations | $ 1,150,000,000 | 0 |
Senior notes | 1.500 percent three-year 2015 senior notes | ||
Short-term Debt [Line Items] | ||
Stated interest rate | 1.50% | |
Debt term | 3 years | |
Current debt obligations | $ 1,000,000,000 | 0 |
Senior notes | 1.375 percent five-year 2013 senior notes | ||
Short-term Debt [Line Items] | ||
Stated interest rate | 1.375% | |
Debt term | 5 years | |
Current debt obligations | $ 1,000,000,000 | 0 |
Senior notes | 3.500 percent seven-year 2010 HTWR senior notes | ||
Short-term Debt [Line Items] | ||
Stated interest rate | 3.50% | |
Debt term | 7 years | |
Current debt obligations | $ 42,000,000 | 0 |
Senior notes | Floating rate three-year 2014 senior notes | ||
Short-term Debt [Line Items] | ||
Debt term | 3 years | |
Current debt obligations | $ 0 | 250,000,000 |
Senior notes | 0.875 percent three-year 2014 senior notes | ||
Short-term Debt [Line Items] | ||
Stated interest rate | 0.875% | |
Debt term | 3 years | |
Current debt obligations | $ 0 | $ 250,000,000 |
Financing Arrangements , Long-t
Financing Arrangements , Long-term Debt (Details) | 12 Months Ended | ||
Apr. 28, 2017USD ($) | Mar. 31, 2017USD ($)tranche | Apr. 29, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Debt premium, net | $ 135,000,000 | $ 214,000,000 | |
Deferred financing costs | (128,000,000) | (138,000,000) | |
Long-term debt | $ 25,921,000,000 | 30,109,000,000 | |
Three-year term loan | |||
Debt Instrument [Line Items] | |||
Debt term | 3 years | ||
Long-term debt | $ 0 | $ 3,000,000,000 | |
Effective Interest Rate | 0.00% | 1.12% | |
Senior notes | 6.000 percent ten-year 2008 CIFSA senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.00% | ||
Debt term | 10 years | ||
Long-term debt | $ 0 | $ 1,150,000,000 | |
Effective Interest Rate | 1.41% | 1.41% | |
Senior notes | 1.375 percent five-year 2013 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 1.375% | ||
Debt term | 5 years | ||
Long-term debt | $ 0 | $ 1,000,000,000 | |
Effective Interest Rate | 1.41% | 1.41% | |
Senior notes | 1.500 percent three-year 2015 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 1.50% | ||
Debt term | 3 years | ||
Long-term debt | $ 0 | $ 1,000,000,000 | |
Effective Interest Rate | 1.59% | 1.59% | |
Senior notes | 5.600 percent ten-year 2009 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.60% | ||
Debt term | 10 years | ||
Long-term debt | $ 400,000,000 | $ 400,000,000 | |
Effective Interest Rate | 5.61% | 5.61% | |
Senior notes | 1.700 percent two-year 2017 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 1.70% | 1.70% | |
Debt term | 2 years | ||
Long-term debt | $ 1,000,000,000 | $ 0 | |
Effective Interest Rate | 1.74% | 0.00% | |
Face value | $ 1,000,000,000 | ||
Senior notes | 4.450 percent ten-year 2010 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.45% | ||
Debt term | 10 years | ||
Long-term debt | $ 766,000,000 | $ 766,000,000 | |
Effective Interest Rate | 4.47% | 4.47% | |
Senior notes | 2.500 percent five-year 2015 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 2.50% | ||
Debt term | 5 years | ||
Long-term debt | $ 2,500,000,000 | $ 2,500,000,000 | |
Effective Interest Rate | 2.52% | 2.52% | |
Senior notes | Floating rate five-year 2015 senior notes | |||
Debt Instrument [Line Items] | |||
Debt term | 5 years | ||
Long-term debt | $ 500,000,000 | $ 500,000,000 | |
Effective Interest Rate | 1.98% | 1.04% | |
Senior notes | 4.200 percent ten-year 2010 CIFSA senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.20% | ||
Debt term | 10 years | ||
Long-term debt | $ 600,000,000 | $ 600,000,000 | |
Effective Interest Rate | 2.22% | 2.22% | |
Senior notes | 4.125 percent ten-year 2011 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.125% | 4.125% | |
Debt term | 10 years | ||
Long-term debt | $ 500,000,000 | $ 500,000,000 | |
Effective Interest Rate | 4.19% | 4.19% | |
Face value | $ 500,000,000 | $ 500,000,000 | |
Senior notes | 3.125 percent ten-year 2012 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.125% | 3.125% | |
Debt term | 10 years | ||
Long-term debt | $ 675,000,000 | $ 675,000,000 | |
Effective Interest Rate | 3.16% | 3.16% | |
Face value | $ 675,000,000 | $ 675,000,000 | |
Senior notes | 3.150 percent seven-year 2015 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.15% | ||
Debt term | 7 years | ||
Long-term debt | $ 2,500,000,000 | $ 2,500,000,000 | |
Effective Interest Rate | 3.18% | 3.18% | |
Senior notes | 3.200 percent ten-year 2012 CIFSA senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.20% | ||
Debt term | 10 years | ||
Long-term debt | $ 650,000,000 | $ 650,000,000 | |
Effective Interest Rate | 2.66% | 2.66% | |
Senior notes | 2.750 percent ten-year 2013 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 2.75% | ||
Debt term | 10 years | ||
Long-term debt | $ 530,000,000 | $ 530,000,000 | |
Effective Interest Rate | 2.78% | 2.78% | |
Senior notes | 2.950 percent ten-year 2013 CIFSA senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 2.95% | ||
Debt term | 10 years | ||
Long-term debt | $ 310,000,000 | $ 310,000,000 | |
Effective Interest Rate | 2.67% | 2.67% | |
Senior notes | 3.625 percent ten-year 2014 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.625% | ||
Debt term | 10 years | ||
Long-term debt | $ 850,000,000 | $ 850,000,000 | |
Effective Interest Rate | 3.65% | 3.65% | |
Senior notes | 3.500 percent ten-year 2015 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.50% | ||
Debt term | 10 years | ||
Long-term debt | $ 4,000,000,000 | $ 4,000,000,000 | |
Effective Interest Rate | 3.61% | 3.61% | |
Senior notes | 3.350 percent ten-year 2017 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.35% | 3.35% | |
Debt term | 10 years | ||
Long-term debt | $ 850,000,000 | $ 0 | |
Effective Interest Rate | 3.35% | 0.00% | |
Face value | $ 850,000,000 | ||
Senior notes | 4.375 percent twenty-year 2015 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.375% | ||
Debt term | 20 years | ||
Long-term debt | $ 2,382,000,000 | $ 2,382,000,000 | |
Effective Interest Rate | 4.44% | 4.44% | |
Senior notes | 6.550 percent thirty-year 2007 CIFSA senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.55% | ||
Debt term | 30 years | ||
Long-term debt | $ 374,000,000 | $ 374,000,000 | |
Effective Interest Rate | 3.75% | 3.75% | |
Senior notes | 6.500 percent thirty-year 2009 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.50% | ||
Debt term | 30 years | ||
Long-term debt | $ 300,000,000 | $ 300,000,000 | |
Effective Interest Rate | 6.52% | 6.52% | |
Senior notes | 5.550 percent thirty-year 2010 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.55% | ||
Debt term | 30 years | ||
Long-term debt | $ 500,000,000 | $ 500,000,000 | |
Effective Interest Rate | 5.56% | 5.56% | |
Senior notes | 4.500 percent thirty-year 2012 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.50% | ||
Debt term | 30 years | ||
Long-term debt | $ 400,000,000 | $ 400,000,000 | |
Effective Interest Rate | 4.51% | 4.51% | |
Senior notes | 4.000 percent thirty-year 2013 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.00% | ||
Debt term | 30 years | ||
Long-term debt | $ 325,000,000 | $ 325,000,000 | |
Effective Interest Rate | 4.12% | 4.12% | |
Senior notes | 4.625 percent thirty-year 2014 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.625% | ||
Debt term | 30 years | ||
Long-term debt | $ 650,000,000 | $ 650,000,000 | |
Effective Interest Rate | 4.67% | 4.67% | |
Senior notes | 4.625 percent thirty-year 2015 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.625% | 4.625% | |
Debt term | 30 years | ||
Long-term debt | $ 4,150,000,000 | $ 4,000,000,000 | |
Effective Interest Rate | 4.62% | 4.64% | |
Face value | $ 4,000,000,000 | ||
Senior notes | 2017 Senior Notes | |||
Debt Instrument [Line Items] | |||
Number of tranches | tranche | 2 | ||
Face value | $ 1,850,000,000 | ||
Senior notes | Senior Notes 2017 Due 2045 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.625% | ||
Face value | $ 150,000,000 | ||
Interest rate swaps | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 40,000,000 | $ 89,000,000 | |
Capital lease obligations | |||
Debt Instrument [Line Items] | |||
Capital lease obligations | $ 23,000,000 | $ 26,000,000 | |
Effective Interest Rate | 4.81% | 4.66% | |
Bank borrowings | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 139,000,000 | $ 56,000,000 | |
Effective Interest Rate | 1.28% | 6.46% |
Financing Arrangements , Long70
Financing Arrangements , Long-term Debt Maturities (Details) $ in Millions | Apr. 28, 2017USD ($) |
Long-term Debt, Fiscal Year Maturity | |
2,018 | $ 7,494 |
2,019 | 1,403 |
2,020 | 3,778 |
2,021 | 1,127 |
2,022 | 3,276 |
Thereafter | 16,290 |
Total debt | 33,368 |
Less: Current portion of debt | 7,494 |
Long-term portion of debt | $ 25,874 |
Derivatives and Currency Exch71
Derivatives and Currency Exchange Risk Management , Freestanding Derivative Forward Contracts and Cash Flow Hedges (Details) - USD ($) | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Derivative Instruments | |||
Gains (losses) relating to ineffectiveness of cash flow hedges | $ 0 | $ 0 | $ 0 |
Gains (losses) relating to ineffectiveness of forward starting interest rate derivative instruments | 0 | 0 | 0 |
After-tax net unrealized gains (losses) | 37,000,000 | (90,000,000) | |
Cash flow hedge unrealized gains to be reclassified over the next twelve months, net of tax | 73,000,000 | ||
Currency exchange rate contracts | |||
Derivative Instruments | |||
Gross notional amount | 10,800,000,000 | 10,800,000,000 | |
Interest rate swaps | |||
Derivative Instruments | |||
Recognized in AOCI | $ 363,000,000 | (164,000,000) | |
Weighted average fixed rate of interest rate derivatives | 3.10% | ||
Market value of derivative instruments - unrealized (loss) gain | $ 0 | (48,000,000) | |
Other expense, net | Currency exchange rate contracts | |||
Derivative Instruments | |||
Currency exchange rate contracts | 54,000,000 | 33,000,000 | 210,000,000 |
Cash flow hedges | |||
Derivative Instruments | |||
Recognized in AOCI | 342,000,000 | (165,000,000) | 707,000,000 |
Recognized in Income | 173,000,000 | 368,000,000 | 156,000,000 |
Cash flow hedges | Currency exchange rate contracts | |||
Derivative Instruments | |||
Recognized in AOCI | 342,000,000 | (165,000,000) | 707,000,000 |
Cash flow hedges | Other expense, net | Currency exchange rate contracts | |||
Derivative Instruments | |||
Recognized in Income | 173,000,000 | 405,000,000 | 221,000,000 |
Cash flow hedges | Cost of products sold | Currency exchange rate contracts | |||
Derivative Instruments | |||
Recognized in Income | (37,000,000) | $ (65,000,000) | |
Derivatives not designated as hedging instruments | Currency exchange rate contracts | |||
Derivative Instruments | |||
Gross notional amount | 4,900,000,000 | 5,000,000,000 | |
Derivatives designated as hedging instruments | Cash flow hedges | Currency exchange rate contracts | |||
Derivative Instruments | |||
Gross notional amount | $ 5,800,000,000 | $ 5,700,000,000 | |
Derivative term | 3 years | 3 years | |
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate swaps | |||
Derivative Instruments | |||
Gross notional amount | $ 300,000,000 | ||
Payments for hedge upon termination | $ 27,000,000 | 45,000,000 | |
Derivative, notional amount terminated | $ 500,000,000 |
Derivatives and Currency Exch72
Derivatives and Currency Exchange Risk Management , Fair Value Hedges (Details) - USD ($) | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Derivative [Line Items] | |||
Gains (losses) hedge ineffectiveness on fair value hedges | $ 0 | $ 0 | $ 0 |
Gains (losses) on firm commitments that no longer qualify as fair value hedges | 0 | 0 | $ 0 |
Senior notes | 4.125 percent ten-year 2011 senior notes | |||
Derivative [Line Items] | |||
Face value of debt | $ 500,000,000 | $ 500,000,000 | |
Stated interest rate | 4.125% | 4.125% | |
Senior notes | 3.125 percent ten-year 2012 senior notes | |||
Derivative [Line Items] | |||
Face value of debt | $ 675,000,000 | $ 675,000,000 | |
Stated interest rate | 3.125% | 3.125% | |
Fair value hedges | Interest rate swaps | |||
Derivative [Line Items] | |||
Unrealized gain on interest rate fair value hedging instruments | $ 41,000,000 | $ 89,000,000 | |
Unrealized loss on interest rate fair value hedged items | 41,000,000 | 89,000,000 | |
Fair value hedges | Derivatives designated as hedging instruments | Interest rate swaps | |||
Derivative [Line Items] | |||
Gross notional amount | $ 1,200,000,000 | $ 1,200,000,000 |
Derivatives and Currency Exch73
Derivatives and Currency Exchange Risk Management , Balance Sheet Presentation (Details) - USD ($) $ in Millions | Apr. 28, 2017 | Apr. 29, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 262 | $ 248 |
Derivative Liabilities | 104 | 219 |
Currency exchange rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 216 | 145 |
Derivative Liabilities | 93 | 166 |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 41 | 89 |
Derivative Liabilities | 48 | |
Commodity derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1 | |
Cross currency interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 5 | 14 |
Derivative Liabilities | 11 | 4 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 241 | 221 |
Derivative Liabilities | 57 | 191 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 152 | 123 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 48 | 9 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 43 | 89 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 14 | 54 |
Derivatives designated as hedging instruments | Interest rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 41 | 89 |
Derivatives designated as hedging instruments | Interest rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 48 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 21 | 27 |
Derivative Liabilities | 47 | 28 |
Derivatives not designated as hedging instruments | Currency exchange rate contracts | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 16 | 13 |
Derivatives not designated as hedging instruments | Currency exchange rate contracts | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 36 | 23 |
Derivatives not designated as hedging instruments | Commodity derivatives | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | |
Derivatives not designated as hedging instruments | Commodity derivatives | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1 | |
Derivatives not designated as hedging instruments | Cross currency interest rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 5 | 14 |
Derivatives not designated as hedging instruments | Cross currency interest rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 11 | $ 4 |
Derivatives and Currency Exch74
Derivatives and Currency Exchange Risk Management , Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Apr. 28, 2017 | Apr. 29, 2016 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 216 | $ 145 |
Derivative liabilities | 93 | 166 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 46 | 103 |
Derivative liabilities | $ 11 | $ 53 |
Derivatives and Currency Exch75
Derivatives and Currency Exchange Risk Management , Offsetting of Assets and Liabilities (Details) - USD ($) $ in Millions | Apr. 28, 2017 | Apr. 29, 2016 |
Offsetting Assets [Line Items] | ||
Derivative Assets, Gross Amount of Recognized Assets (Liabilities) | $ 262 | $ 248 |
Derivative Assets, Gross Amount Not Offset on the Balance Sheet, Financial Instruments | (75) | (118) |
Derivative Assets, Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) or Posted | (60) | (1) |
Derivative Assets, Net Amount | 127 | 129 |
Derivative Liabilities, Gross Amount of Recognized Assets (Liabilities) | (104) | (219) |
Derivative Liabilities, Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 75 | 119 |
Derivative Liabilities, Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) or Pledged | 0 | 26 |
Derivative Liabilities, Net Amount | (29) | (74) |
Total Derivatives, Gross Amount of Recognized Assets (Liabilities) | 158 | 29 |
Total Derivatives, Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 0 | 1 |
Total Derivatives, Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) or Posted | (60) | 25 |
Total Derivatives, Net Amount | 98 | 55 |
Currency exchange rate contracts | ||
Offsetting Assets [Line Items] | ||
Derivative Assets, Gross Amount of Recognized Assets (Liabilities) | 216 | 145 |
Derivative Assets, Gross Amount Not Offset on the Balance Sheet, Financial Instruments | (58) | (98) |
Derivative Assets, Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) or Posted | (55) | (1) |
Derivative Assets, Net Amount | 103 | 46 |
Derivative Liabilities, Gross Amount of Recognized Assets (Liabilities) | (93) | (166) |
Derivative Liabilities, Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 73 | 85 |
Derivative Liabilities, Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) or Pledged | 0 | 26 |
Derivative Liabilities, Net Amount | (20) | (55) |
Interest rate contracts | ||
Offsetting Assets [Line Items] | ||
Derivative Assets, Gross Amount of Recognized Assets (Liabilities) | 41 | 89 |
Derivative Assets, Gross Amount Not Offset on the Balance Sheet, Financial Instruments | (15) | (20) |
Derivative Assets, Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) or Posted | (5) | 0 |
Derivative Assets, Net Amount | 21 | 69 |
Derivative Liabilities, Gross Amount of Recognized Assets (Liabilities) | (48) | |
Derivative Liabilities, Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 34 | |
Derivative Liabilities, Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) or Pledged | 0 | |
Derivative Liabilities, Net Amount | (14) | |
Cross currency interest rate contracts | ||
Offsetting Assets [Line Items] | ||
Derivative Assets, Gross Amount of Recognized Assets (Liabilities) | 5 | 14 |
Derivative Assets, Gross Amount Not Offset on the Balance Sheet, Financial Instruments | (2) | 0 |
Derivative Assets, Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) or Posted | 0 | 0 |
Derivative Assets, Net Amount | 3 | 14 |
Derivative Liabilities, Gross Amount of Recognized Assets (Liabilities) | (11) | (4) |
Derivative Liabilities, Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 2 | 0 |
Derivative Liabilities, Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) or Pledged | 0 | 0 |
Derivative Liabilities, Net Amount | $ (9) | (4) |
Commodity contracts | ||
Offsetting Assets [Line Items] | ||
Derivative Liabilities, Gross Amount of Recognized Assets (Liabilities) | (1) | |
Derivative Liabilities, Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 0 | |
Derivative Liabilities, Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) or Pledged | 0 | |
Derivative Liabilities, Net Amount | $ (1) |
Derivatives and Currency Exch76
Derivatives and Currency Exchange Risk Management , Credit Risk and Other Disclosures (Details) - USD ($) $ in Millions | Apr. 28, 2017 | Apr. 29, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net cash collateral posted (received) | $ (60) | $ 25 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Apr. 28, 2017 | Apr. 29, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 2,211 | $ 2,242 |
Work in-process | 458 | 499 |
Raw materials | 669 | 732 |
Total | $ 3,338 | $ 3,473 |
Property, Plant, and Equipmen78
Property, Plant, and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 9,691 | $ 9,714 | |
Less: Accumulated depreciation | (5,330) | (4,873) | |
Property, plant, and equipment, net | 4,361 | 4,841 | |
Depreciation expense | 937 | 889 | $ 573 |
Land and land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 186 | 215 | |
Land and land improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, useful life | 20 years | ||
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 2,175 | 2,394 | |
Buildings and leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, useful life | 40 years | ||
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, useful life | 15 years | ||
Subtotal | $ 6,435 | 6,328 | |
Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, useful life | 3 years | ||
Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, useful life | 7 years | ||
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 895 | $ 777 |
Warranty Obligations (Details)
Warranty Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 28, 2017 | Apr. 29, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance as of beginning of period | $ 108 | $ 135 |
Warranty claims provision | 61 | 64 |
Settlements | (68) | (91) |
Balance as of end of period | $ 101 | $ 108 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Apr. 28, 2017USD ($)$ / sharesshares | Apr. 29, 2016$ / sharesshares | Jun. 26, 2017shares | Apr. 28, 2017€ / sharesshares | Jun. 30, 2015shares | |
Class of Stock [Line Items] | |||||
Common stock, authorized (shares) | 2,600,000,000 | 2,600,000,000 | 2,600,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Deferred stock, shares authorized | 40,000 | 40,000 | |||
Deferred stock, par value (in euros per share) | € / shares | € 1 | ||||
Deferred stock, issued (shares) | 0 | 0 | |||
Deferred stock, outstanding (shares) | 0 | 0 | |||
Preferred stock, authorized (shares) | 127,500,000 | 127,500,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.20 | ||||
Preferred stock, issued (shares) | 0 | 0 | |||
Preferred stock, outstanding (shares) | 0 | 0 | |||
Stock issued to advisors (shares) | 624 | ||||
Stock issued during period (shares) | 1,872 | ||||
Stock issued during period | $ | $ 75 | ||||
June 2015 Share Repurchase Program | |||||
Class of Stock [Line Items] | |||||
Shares repurchased (shares) | 43,000,000 | 38,000,000 | |||
Average repurchase price (in dollars per share) | $ / shares | $ 83.03 | $ 74.92 | |||
Common stock authorized to be repurchased (shares) | 80,000,000 | 80,000,000 | 80,000,000 | ||
Number of shares repurchased to date | 51,000,000 | 51,000,000 | |||
Common stock available for future repurchases (shares) | 29,000,000 | 29,000,000 | |||
Series A Preferred Shares | |||||
Class of Stock [Line Items] | |||||
Preferred stock, authorized (shares) | 500,000 | 500,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 1 | ||||
Subsequent event | June 2017 Share Repurchase Program | |||||
Class of Stock [Line Items] | |||||
Common stock authorized to be repurchased (shares) | 5,000,000,000 |
Stock Purchase and Award Plan81
Stock Purchase and Award Plans , Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Fair Value Assumptions Used in Black-Scholes Model | |||
Weighted average fair value of options granted (per share) | $ 14.70 | $ 13.72 | $ 25.39 |
Expected life (years) | 6 years 2 months 4 days | 5 years 11 months 10 days | 4 years 2 months 27 days |
Risk-free interest rate | 1.26% | 1.79% | 0.99% |
Volatility | 21.07% | 21.00% | 21.29% |
Dividend yield | 1.97% | 1.96% | 1.66% |
Stock Purchase and Award Plan82
Stock Purchase and Award Plans , Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 348 | $ 375 | $ 439 |
Income tax benefits | (98) | (108) | (138) |
Stock-based compensation expense, net of tax | 250 | 267 | 301 |
Cost of products sold | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 49 | 50 | 23 |
Research and development expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 41 | 37 | 29 |
Selling, general, and administrative expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 233 | 212 | 128 |
Restructuring charges | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2 | 18 | 70 |
Acquisition-related items | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 23 | 58 | 189 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 157 | 206 | 140 |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 169 | 148 | 284 |
Employees stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 22 | $ 21 | $ 15 |
Stock Purchase and Award Plan83
Stock Purchase and Award Plans , Stock Options Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Stock Option Activity | |||
Outstanding (in shares) | 52,970 | ||
Granted (in shares) | 4,061 | ||
Exercised (in shares) | (9,488) | ||
Expired/Forfeited (in shares) | (2,349) | ||
Outstanding (in shares) | 45,194 | 52,970 | |
Options, Vested and expected to vest (in shares) | 22,929 | ||
Options, Exercisable (in shares) | 19,138 | ||
Stock Option Activity | |||
Outstanding (in dollars per share) | $ 57.09 | ||
Granted (in dollars per share) | 87.35 | ||
Exercised (in dollars per share) | 40.56 | ||
Expired/Forfeited (in dollars per share) | 73.90 | ||
Outstanding (in dollars per share) | 62.41 | $ 57.09 | |
Weighted Average Exercise Price, Vested and expected to vest (in dollars per share) | 75.32 | ||
Weighted Average Exercise Price, Exercisable (in dollars per share) | $ 44.71 | ||
Weighted Average Remaining Contractual Term, Outstanding | 6 years 3 months 20 days | ||
Weighted Average Remaining Contractual Term, Vested and expected to vest | 7 years 10 months 21 days | ||
Weighted Average Remaining Contractual Term, Exercisable | 4 years 1 month 20 days | ||
Aggregate Intrinsic Value, Outstanding | $ 952 | ||
Aggregate Intrinsic Value, Vested and expected to vest | 194 | ||
Aggregate Intrinsic Value, Exercisable | 735 | ||
Cash proceeds from options exercised | 367 | $ 452 | $ 609 |
Intrinsic value of options exercised | 403 | 374 | 329 |
Tax benefit related to options exercised | $ 140 | $ 131 | $ 106 |
Stock Purchase and Award Plan84
Stock Purchase and Award Plans , Restricted Stock Award Activity (Details) - Restricted stock - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Restricted Stock Award Activity | |||
Nonvested (in shares) | 8,820 | ||
Granted (in shares) | 3,198 | ||
Vested (in shares) | (2,727) | ||
Forfeited (in shares) | (503) | ||
Nonvested (in shares) | 8,788 | 8,820 | |
Restricted Stock Award Activity | |||
Nonvested (in dollars per share) | $ 64.33 | ||
Granted (in dollars per share) | 85.07 | $ 77.68 | $ 69.30 |
Vested (in dollars per share) | 48.17 | ||
Forfeited (in dollars per share) | 71.32 | ||
Nonvested (in dollars per share) | $ 76.49 | $ 64.33 | |
Fair value of restricted stock awards vested | $ 131 | $ 276 | $ 174 |
Tax benefit related to restricted stock awards vested | $ 76 | $ 76 | $ 50 |
Stock Purchase and Award Plan85
Stock Purchase and Award Plans , Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 348 | $ 375 | $ 439 |
Acquisition-related items | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 23 | 58 | 189 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Vesting period | 4 years | ||
Stock-based compensation expense | $ 157 | $ 206 | 140 |
Unrecognized compensation expense related to outstanding stock options | $ 178 | ||
Weighted average period over which unrecognized compensation is expected to be recognized | 1 year 7 months | ||
Restricted stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards outstanding (in shares) | 0 | ||
Performance-based restricted stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Awards outstanding (in shares) | 8,788,000 | 8,820,000 | |
Stock-based compensation expense | $ 169 | $ 148 | 284 |
Weighted average period over which unrecognized compensation is expected to be recognized | 2 years 6 months 12 days | ||
Unrecognized compensation expense related to restricted stock awards | $ 334 | ||
Employees stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
The discount rate from market value on purchase date | 15.00% | ||
Minimum employee contribution rate | 2.00% | ||
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) | 2,000,000 | ||
Average purchase price (in dollars per share) | $ 68.68 | ||
Amount withheld to purchase common stock | $ 11 | ||
Shares available for future purchase (in shares) | 18,000,000 | ||
Stock-based compensation expense | $ 22 | $ 21 | $ 15 |
2013 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grants (in shares) | 21,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Income (Loss) from Continuing Operations before Income Taxes, by Jurisdiction | |||
U.S. | $ (234) | $ 333 | $ 639 |
International | 4,836 | 4,003 | 2,847 |
Income before provision for income taxes | 4,602 | 4,336 | 3,486 |
Current tax expense: | |||
U.S. | 614 | 440 | 1,128 |
International | 840 | 835 | 502 |
Total current tax expense | 1,454 | 1,275 | 1,630 |
Deferred tax (benefit) expense: | |||
U.S. | (399) | (67) | (705) |
International | (477) | (410) | (114) |
Net deferred tax benefit | (876) | (477) | (819) |
Total provision for income taxes | 578 | 798 | $ 811 |
Deferred tax assets: | |||
Net operating loss, capital loss, and credit carryforwards | 6,800 | 7,568 | |
Other accrued liabilities | 658 | 619 | |
Accrued compensation | 427 | 358 | |
Pension and post-retirement benefits | 456 | 530 | |
Stock-based compensation | 278 | 316 | |
Other | 308 | 341 | |
Inventory | 277 | 225 | |
Federal and state benefit on uncertain tax positions | 191 | 308 | |
Unrealized loss on available-for-sale securities and derivative financial instruments | 0 | 107 | |
Gross deferred tax assets | 9,395 | 10,372 | |
Valuation allowance | (6,311) | (7,032) | |
Total deferred tax assets | 3,084 | 3,340 | |
Deferred tax liabilities: | |||
Intangible assets | (4,943) | (5,173) | |
Basis impairment | 0 | (230) | |
Realized loss on derivative financial instruments | (112) | (112) | |
Other | (74) | (179) | |
Accumulated depreciation | (149) | (189) | |
Unrealized gain on available-for-sale securities and derivative financial instruments | (18) | 0 | |
Outside basis difference of subsidiaries | (112) | 0 | |
Total deferred tax liabilities | (5,408) | (5,883) | |
Prepaid income taxes | 475 | 365 | |
Income tax receivables | 218 | 529 | |
Tax liabilities, net | (1,631) | (1,649) | |
Reported as (after valuation allowance and jurisdictional netting): | |||
Prepaid expenses and other current assets | 545 | 697 | |
Tax assets | 1,509 | 1,383 | |
Deferred tax liabilities | (2,978) | (3,729) | |
Noncurrent liabilities held for sale | $ (707) | $ 0 | |
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 | 1.00% | 0.90% | 0.80% |
Research and development credit | (0.90%) | (1.20%) | (0.70%) |
Domestic production activities | (0.40%) | (0.30%) | (0.40%) |
International | (27.10%) | (23.40%) | (24.30%) |
Puerto Rico Excise Tax | (1.50%) | (1.60%) | (1.70%) |
Impact of adjustments | 5.70% | 11.40% | 13.30% |
Valuation allowance release | (1.00%) | (0.90%) | 0.00% |
Other, net | 1.80% | (1.50%) | 1.30% |
Effective tax rate | 12.60% | 18.40% | 23.30% |
Unrecognized Tax Benefits Reconciliation | |||
Gross unrecognized tax benefits at beginning of fiscal year | $ 2,703 | $ 2,860 | $ 1,172 |
Gross increases: | |||
Prior year tax positions | 147 | 36 | 331 |
Current year tax positions | 75 | 202 | 231 |
Acquisitions | 4 | 0 | 1,199 |
Acquisitions | |||
Prior year tax positions | (538) | (116) | (40) |
Settlements | (467) | (275) | (33) |
Statute of limitation lapses | (28) | (4) | 0 |
Gross unrecognized tax benefits at end of fiscal year | 1,896 | 2,703 | 2,860 |
Cash advance paid in connection with proposed settlements | 0 | (384) | (378) |
Gross unrecognized tax benefits at end of fiscal year, net of cash advance | $ 1,896 | $ 2,319 | $ 2,482 |
Income Taxes , Additional Infor
Income Taxes , Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | Apr. 25, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | $ 392 | |||
Tax credit carryforward, no expiration | 75 | |||
Valuation allowance | 6,311 | $ 7,032 | ||
Income tax settlements and adjustments | 202 | 417 | $ 349 | |
Charge associated with IRS resolution | 404 | |||
Net charge associated with expected divestiture of division | 125 | |||
Disallowance of net operating losses | 86 | |||
Charge recognized for redemption of intercompany minority interest | 18 | |||
Benefit recognized from resolution of intercompany debt issues | 431 | |||
Cash, cash equivalents and investments in marketable debt and equity securities became available | 9,700 | |||
Tax benefit associated with the disposition of a wholly owned U.S. subsidiary | 25 | |||
Tax adjustment associated with proposed settlement | 329 | |||
Undistributed earnings from non-U.S. subsidiaries | 31,800 | 29,000 | ||
Removal of reinvested assertion on undistributed earnings of certain subsidiaries | 200 | |||
Tax reductions from tax holiday | 475 | 474 | 414 | |
Gross unrecognized tax benefits | 1,896 | 2,703 | 2,860 | $ 1,172 |
Unrecognized tax benefits that would impact effective tax rate | 1,800 | 2,100 | 2,200 | |
Gross unrecognized tax benefits, long-term liability | 1,900 | |||
Decrease in unrecognized tax benefits is reasonably possible (as much as) | 225 | |||
Accrued income tax penalties and interest | 360 | 609 | 656 | |
Interest expense | (208) | $ 80 | 142 | |
Covidien plc | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax on gain associated with the Covidien acquisition | $ 20 | |||
Non-U.S. Tax Authorities | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 24,900 | |||
Net operating loss carryforwards, no expiration | 22,000 | |||
Net operating loss carryforwards, expiring in future years | 2,900 | |||
Net operating loss carryforwards, valuation allowance | 7,300 | |||
Special deductions not recorded | $ 12,000 | |||
Impact on diluted earnings per share (in dollars per share) | $ 0.34 | $ 0.33 | $ 0.37 | |
Non-U.S. Tax Authorities | Subsidiaries | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 17,600 | |||
U.S. Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 1,000 | |||
Income tax settlements and adjustments | $ 442 | |||
State and Local Tax Authorities | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 690 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2017 | Jan. 27, 2017 | Oct. 28, 2016 | Jul. 29, 2016 | Apr. 29, 2016 | Jan. 29, 2016 | Oct. 30, 2015 | Jul. 31, 2015 | Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Numerator: | |||||||||||
Net income attributable to ordinary shareholders | $ 1,163 | $ 821 | $ 1,115 | $ 929 | $ 1,104 | $ 1,095 | $ 520 | $ 820 | $ 4,028 | $ 3,538 | $ 2,675 |
Denominator: | |||||||||||
Basic weighted average shares outstanding (shares) | 1,378.9 | 1,409.6 | 1,095.5 | ||||||||
Effect of dilutive securities: | |||||||||||
Employee stock options (shares) | 9 | 12.2 | 9.1 | ||||||||
Employee restricted stock units (shares) | 3.4 | 4 | 4.3 | ||||||||
Other (shares) | 0.1 | 0.1 | 0.1 | ||||||||
Diluted – weighted average shares outstanding (in shares) | 1,391.4 | 1,425.9 | 1,109 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.85 | $ 0.60 | $ 0.81 | $ 0.67 | $ 0.79 | $ 0.78 | $ 0.37 | $ 0.58 | $ 2.92 | $ 2.51 | $ 2.44 |
Diluted earnings per share (in dollars per share) | $ 0.84 | $ 0.59 | $ 0.80 | $ 0.66 | $ 0.78 | $ 0.77 | $ 0.36 | $ 0.57 | $ 2.89 | $ 2.48 | $ 2.41 |
Stock options | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Number of shares excluded from computation of earnings per share (shares) | 7 | 4 | 2 |
Retirement Benefit Plans , Addi
Retirement Benefit Plans , Additional Information (Details) $ in Millions | 12 Months Ended | |||
Apr. 28, 2017USD ($) | Apr. 29, 2016USD ($) | Apr. 24, 2015USD ($) | May 01, 2005plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Cost of retirement benefit plans | $ 602 | $ 584 | $ 433 | |
Underfunded status of the plan | (1,300) | (1,400) | ||
Special termination benefits | 73 | |||
Special termination benefits, defined contribution plan | 4 | |||
Cash payments and administrative fees | 2 | |||
Real estate investment to be liquidated | 1 | |||
Expense under defined contribution plans | $ 347 | 269 | 188 | |
Treasury bond rate of guaranteed rate of return | 10 years | |||
Partnerships | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Range of notice period | 45 days | |||
Partnerships | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Range of notice period | 95 days | |||
Absolute return strategy funds | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Absolute return strategy funds in process of liquidation, fair value | $ 2 | |||
Private equity fund | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Private equity funds, unfunded commitments | $ 158 | |||
Private equity funds, estimated minimum liquidation period | 1 year | |||
Private equity funds, estimated maximum liquidation period | 15 years | |||
Real asset investments | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Real asset investments, estimated liquidation and redemption period | 30 days | |||
Real asset investments | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Real asset investments, estimated liquidation and redemption period | 10 years | |||
Personal Pension Account | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expense under defined contribution plans | $ 58 | 58 | 53 | |
Medtronic Core Contribution | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expense under defined contribution plans | 45 | 12 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency Business | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Disposal group, pension and post-retirement benefit liabilities | 12 | |||
Disposal group, pension benefit liabilities | 9 | |||
Disposal group, post-retirement benefit liabilities | $ 3 | |||
U.S. Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocations | 100.00% | |||
Number of new plans created | plan | 2 | |||
U.S. Pension Benefits | Equity | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocations | 40.00% | |||
U.S. Pension Benefits | Debt | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocations | 36.00% | |||
U.S. Pension Benefits | Other | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocations | 24.00% | |||
Pension benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Underfunded status of the plan | $ (499) | (422) | ||
Estimated future employer contributions in next fiscal year | 302 | |||
Post-retirement benefit plans, benefit obligations | 1,734 | 1,535 | ||
Post-retirement benefit plans, fair value of plan assets | 1,235 | 1,113 | ||
Pension benefits | U.S. Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Underfunded status of the plan | (753) | (910) | ||
Special termination benefits, defined benefit plan | 60 | 0 | 0 | |
Defined benefit plan, future amortization of net actuarial loss | 83 | |||
Employer contributions | 183 | 112 | ||
Post-retirement benefit plans, net periodic benefit cost | 180 | 159 | 114 | |
Post-retirement benefit plans, benefit obligations | 3,232 | 3,048 | 2,956 | |
Post-retirement benefit plans, fair value of plan assets | 2,479 | 2,138 | 2,204 | |
Pension benefits | Non-U.S. Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Special termination benefits, defined benefit plan | 0 | 0 | 0 | |
Defined benefit plan, future amortization of net actuarial loss | 17 | |||
Employer contributions | 76 | 93 | ||
Post-retirement benefit plans, net periodic benefit cost | 64 | 74 | 64 | |
Post-retirement benefit plans, benefit obligations | 1,734 | 1,535 | 1,647 | |
Post-retirement benefit plans, fair value of plan assets | $ 1,235 | 1,113 | 1,189 | |
Pension benefits | Non-U.S. Pension Benefits | Equity | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocations | 37.00% | |||
Pension benefits | Non-U.S. Pension Benefits | Debt | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocations | 29.00% | |||
Pension benefits | Non-U.S. Pension Benefits | Other | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocations | 34.00% | |||
Other post-retirement benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Post-retirement benefit plans, net periodic benefit cost | $ 11 | 12 | $ 14 | |
Post-retirement benefit plans, benefit obligations | 323 | 369 | ||
Post-retirement benefit plans, fair value of plan assets | 289 | $ 269 | ||
Other post-retirement benefits | U.S. Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Special termination benefits, defined benefit plan | $ 7 |
Retirement Benefit Plans , Chan
Retirement Benefit Plans , Change in Benefit Obligation and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | Apr. 28, 2017 | Apr. 29, 2016 | |
Funded status at end of year: | |||||
Underfunded status of the plans | $ (1,300) | $ (1,400) | |||
Amounts recognized on the consolidated balance sheets consist of: | |||||
Non-current liabilities | (1,641) | (1,759) | |||
Pension benefits | |||||
Change in projected benefit obligation: | |||||
Projected benefit obligation at beginning of year | $ 1,535 | ||||
Projected benefit obligation at end of year | 1,734 | $ 1,535 | |||
Change in plan assets: | |||||
Fair value of plan assets at beginning of year | 1,113 | ||||
Fair value of plan assets at end of year | 1,235 | 1,113 | |||
Funded status at end of year: | |||||
Fair value of plan assets | 1,113 | 1,113 | 1,235 | 1,113 | |
Benefit obligations | 1,535 | 1,535 | 1,734 | 1,535 | |
Underfunded status of the plans | (499) | (422) | |||
Recognized liability | (499) | (422) | |||
Amounts recognized on the consolidated balance sheets consist of: | |||||
Recognized liability | (499) | (422) | |||
Plans with accumulated benefit obligations in excess of plan assets | |||||
Accumulated benefit obligation | 4,188 | 3,922 | |||
Projected benefit obligation | 4,677 | 4,333 | |||
Plan asset at fair value | 3,454 | 2,981 | |||
Plans with projected benefit obligations in excess of plan assets | |||||
Projected benefit obligation | 4,903 | 4,362 | |||
Plan assets at fair value | 3,646 | 3,009 | |||
U.S. Pension Benefits | Pension benefits | |||||
Defined Benefit Plan Disclosure [Line items] | |||||
Accumulated benefit obligation at end of year | 2,879 | 2,757 | |||
Change in projected benefit obligation: | |||||
Projected benefit obligation at beginning of year | 3,048 | 2,956 | |||
Service cost | 117 | 120 | $ 104 | ||
Interest cost | 109 | 122 | 105 | ||
Employee contributions | 0 | 0 | |||
Plan curtailments and settlements | 0 | (28) | |||
Actuarial (gain) loss | (22) | (42) | |||
Benefits paid | (80) | (80) | |||
Special termination benefits | 60 | 0 | |||
Currency exchange rate changes and other | 0 | 0 | |||
Projected benefit obligation at end of year | 3,232 | 3,048 | 2,956 | ||
Change in plan assets: | |||||
Fair value of plan assets at beginning of year | 2,138 | 2,204 | |||
Actual return on plan assets | 238 | (70) | |||
Employer contributions | 183 | 112 | |||
Employee contributions | 0 | 0 | |||
Plan settlements | 0 | (28) | |||
Benefits paid | (80) | (80) | |||
Currency exchange rate changes and other | 0 | 0 | |||
Fair value of plan assets at end of year | 2,479 | 2,138 | 2,204 | ||
Funded status at end of year: | |||||
Fair value of plan assets | 2,138 | 2,204 | 2,204 | 2,479 | 2,138 |
Benefit obligations | 3,048 | 2,956 | 2,956 | 3,232 | 3,048 |
Underfunded status of the plans | (753) | (910) | |||
Recognized liability | (753) | (910) | |||
Amounts recognized on the consolidated balance sheets consist of: | |||||
Non-current assets | 0 | 0 | |||
Current liabilities | (13) | (12) | |||
Non-current liabilities | (740) | (898) | |||
Recognized liability | (753) | (910) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||
Prior service cost (benefit) | 3 | 4 | |||
Net actuarial loss | 1,212 | 1,361 | |||
Ending balance | 1,215 | 1,365 | |||
Non-U.S. Pension Benefits | Pension benefits | |||||
Defined Benefit Plan Disclosure [Line items] | |||||
Accumulated benefit obligation at end of year | 1,518 | 1,367 | |||
Change in projected benefit obligation: | |||||
Projected benefit obligation at beginning of year | 1,535 | 1,647 | |||
Service cost | 70 | 81 | 60 | ||
Interest cost | 26 | 31 | 33 | ||
Employee contributions | 15 | 16 | |||
Plan curtailments and settlements | 6 | (133) | |||
Actuarial (gain) loss | 182 | (103) | |||
Benefits paid | (43) | (49) | |||
Special termination benefits | 0 | 0 | |||
Currency exchange rate changes and other | (57) | 45 | |||
Projected benefit obligation at end of year | 1,734 | 1,535 | 1,647 | ||
Change in plan assets: | |||||
Fair value of plan assets at beginning of year | 1,113 | 1,189 | |||
Actual return on plan assets | 109 | (44) | |||
Employer contributions | 76 | 93 | |||
Employee contributions | 15 | 16 | |||
Plan settlements | (1) | (118) | |||
Benefits paid | (43) | (49) | |||
Currency exchange rate changes and other | (34) | 26 | |||
Fair value of plan assets at end of year | 1,235 | 1,113 | 1,189 | ||
Funded status at end of year: | |||||
Fair value of plan assets | 1,113 | 1,189 | 1,189 | 1,235 | 1,113 |
Benefit obligations | $ 1,535 | $ 1,647 | $ 1,647 | 1,734 | 1,535 |
Recognized liability | (499) | (422) | |||
Amounts recognized on the consolidated balance sheets consist of: | |||||
Non-current assets | 5 | 20 | |||
Current liabilities | (7) | (8) | |||
Non-current liabilities | (497) | (434) | |||
Recognized liability | (499) | (422) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||
Prior service cost (benefit) | (6) | (14) | |||
Net actuarial loss | 450 | 359 | |||
Ending balance | $ 444 | $ 345 |
Retirement Benefit Plans , Net
Retirement Benefit Plans , Net Periodic Cost and AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Net Periodic Benefit Cost | |||
Special termination benefits | $ 73 | ||
U.S. Pension Benefits | Pension benefits | |||
Net Periodic Benefit Cost | |||
Service cost | 117 | $ 120 | $ 104 |
Interest cost | 109 | 122 | 105 |
Expected return on plan assets | (195) | (180) | (160) |
Amortization of prior service cost | 1 | 0 | 0 |
Amortization of net actuarial loss | 88 | 98 | 65 |
Settlement gain | 0 | (1) | 0 |
Special termination benefits | 60 | 0 | 0 |
Net periodic benefit cost | 180 | 159 | 114 |
Amounts Recognized in AOCI | |||
Net actuarial (gain) loss | (61) | ||
Amortization of prior service cost | (1) | ||
Amortization of net actuarial loss | (88) | ||
Prior service cost | 0 | ||
Effect of exchange rates | 0 | ||
Total (gain) loss recognized in accumulated other comprehensive loss | (150) | ||
Total loss recognized in net periodic benefit cost and accumulated other comprehensive loss | 30 | ||
Non-U.S. Pension Benefits | Pension benefits | |||
Net Periodic Benefit Cost | |||
Service cost | 70 | 81 | 60 |
Interest cost | 26 | 31 | 33 |
Expected return on plan assets | (48) | (48) | (41) |
Amortization of prior service cost | (1) | 0 | 0 |
Amortization of net actuarial loss | 17 | 20 | 12 |
Settlement gain | 0 | (10) | 0 |
Special termination benefits | 0 | 0 | 0 |
Net periodic benefit cost | 64 | $ 74 | $ 64 |
Amounts Recognized in AOCI | |||
Net actuarial (gain) loss | 121 | ||
Amortization of prior service cost | 1 | ||
Amortization of net actuarial loss | (17) | ||
Prior service cost | 8 | ||
Effect of exchange rates | (13) | ||
Total (gain) loss recognized in accumulated other comprehensive loss | 100 | ||
Total loss recognized in net periodic benefit cost and accumulated other comprehensive loss | $ 164 |
Retirement Benefit Plans , Actu
Retirement Benefit Plans , Actuarial Assumptions and Plan Assets Target Allocations (Details) | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
U.S. Pension Benefits | |||
Plan Assets Target Allocations | |||
Target allocations | 100.00% | ||
Actual Allocation | 100.00% | 100.00% | |
U.S. Pension Benefits | Equity | |||
Plan Assets Target Allocations | |||
Target allocations | 40.00% | ||
Actual Allocation | 45.00% | 43.00% | |
U.S. Pension Benefits | Debt securities | |||
Plan Assets Target Allocations | |||
Target allocations | 36.00% | ||
Actual Allocation | 37.00% | 35.00% | |
U.S. Pension Benefits | Other | |||
Plan Assets Target Allocations | |||
Target allocations | 24.00% | ||
Actual Allocation | 18.00% | 22.00% | |
Pension benefits | U.S. Pension Benefits | |||
Critical assumptions – projected benefit obligation: | |||
Discount rate | 4.20% | ||
Rate of compensation increase | 3.90% | 3.90% | 3.90% |
Critical assumptions – net periodic benefit cost: | |||
Discount rate – benefit obligation | 4.75% | ||
Discount rate – service cost | 4.75% | ||
Discount rate – interest cost | 4.75% | ||
Expected return on plan assets | 8.20% | 8.20% | 8.25% |
Rate of compensation increase | 3.90% | 3.90% | 3.90% |
Pension benefits | U.S. Pension Benefits | Minimum | |||
Critical assumptions – projected benefit obligation: | |||
Discount rate | 3.70% | 3.60% | |
Critical assumptions – net periodic benefit cost: | |||
Discount rate – benefit obligation | 3.55% | 4.20% | |
Discount rate – service cost | 3.60% | 4.20% | |
Discount rate – interest cost | 2.90% | 4.20% | |
Pension benefits | U.S. Pension Benefits | Maximum | |||
Critical assumptions – projected benefit obligation: | |||
Discount rate | 4.30% | 4.30% | |
Critical assumptions – net periodic benefit cost: | |||
Discount rate – benefit obligation | 4.30% | 4.80% | |
Discount rate – service cost | 4.45% | 4.80% | |
Discount rate – interest cost | 3.80% | 4.80% | |
Pension benefits | Non-U.S. Pension Benefits | |||
Critical assumptions – projected benefit obligation: | |||
Discount rate | 1.88% | ||
Rate of compensation increase | 2.89% | 2.83% | 2.92% |
Critical assumptions – net periodic benefit cost: | |||
Discount rate – benefit obligation | 3.32% | ||
Discount rate – service cost | 3.32% | ||
Discount rate – interest cost | 3.32% | ||
Expected return on plan assets | 4.45% | 4.35% | 4.77% |
Rate of compensation increase | 2.83% | 2.92% | 2.80% |
Pension benefits | Non-U.S. Pension Benefits | Minimum | |||
Critical assumptions – projected benefit obligation: | |||
Discount rate | 0.45% | 0.25% | |
Critical assumptions – net periodic benefit cost: | |||
Discount rate – benefit obligation | 0.25% | 0.80% | |
Discount rate – service cost | 0.05% | 0.80% | |
Discount rate – interest cost | 0.30% | 0.80% | |
Pension benefits | Non-U.S. Pension Benefits | Maximum | |||
Critical assumptions – projected benefit obligation: | |||
Discount rate | 11.40% | 10.20% | |
Critical assumptions – net periodic benefit cost: | |||
Discount rate – benefit obligation | 10.20% | 9.00% | |
Discount rate – service cost | 10.20% | 9.00% | |
Discount rate – interest cost | 10.20% | 9.00% | |
Pension benefits | Non-U.S. Pension Benefits | Equity | |||
Plan Assets Target Allocations | |||
Target allocations | 37.00% | ||
Pension benefits | Non-U.S. Pension Benefits | Debt securities | |||
Plan Assets Target Allocations | |||
Target allocations | 29.00% | ||
Pension benefits | Non-U.S. Pension Benefits | Other | |||
Plan Assets Target Allocations | |||
Target allocations | 34.00% |
Retirement Benefit Plans , Fair
Retirement Benefit Plans , Fair Value Measurement (Details) - Pension benefits - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | $ 1,235 | $ 1,113 | |
U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 2,479 | 2,138 | $ 2,204 |
Investments Measured at Net Asset Value | 1,426 | 1,187 | |
U.S. Pension Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 306 | 264 | |
U.S. Pension Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 279 | 225 | |
U.S. Pension Benefits | Level 3 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 468 | 462 | |
U.S. Pension Benefits | Short-term investments | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 168 | 127 | |
U.S. Pension Benefits | Short-term investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 168 | 127 | |
U.S. Pension Benefits | Short-term investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Benefits | Short-term investments | Level 3 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Benefits | U.S. government securities | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 167 | 146 | |
U.S. Pension Benefits | U.S. government securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 138 | 137 | |
U.S. Pension Benefits | U.S. government securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 29 | 9 | |
U.S. Pension Benefits | U.S. government securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Benefits | Corporate debt securities | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 250 | 216 | |
U.S. Pension Benefits | Corporate debt securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Benefits | Corporate debt securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 250 | 216 | |
U.S. Pension Benefits | Corporate debt securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | |||
Beginning balance | 0 | 1 | |
Total realized gains included in income | 0 | ||
Total unrealized gains included in accumulated other comprehensive (loss) income | (1) | ||
Purchases and sales, net | 0 | ||
Ending balance | 0 | ||
U.S. Pension Benefits | Equity commingled trusts | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 1,127 | 956 | |
Investments Measured at Net Asset Value | 1,127 | 956 | |
U.S. Pension Benefits | Equity commingled trusts | Level 1 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Benefits | Equity commingled trusts | Level 2 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Benefits | Equity commingled trusts | Level 3 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Benefits | Fixed income commingled trusts | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 299 | 231 | |
Investments Measured at Net Asset Value | 299 | 231 | |
U.S. Pension Benefits | Fixed income commingled trusts | Level 1 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Benefits | Fixed income commingled trusts | Level 2 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Benefits | Fixed income commingled trusts | Level 3 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Benefits | Investments | Level 3 | |||
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | |||
Beginning balance | 462 | 473 | |
Total realized gains included in income | 25 | 10 | |
Total unrealized gains included in accumulated other comprehensive (loss) income | 28 | (144) | |
Purchases and sales, net | (47) | 123 | |
Ending balance | 468 | 462 | |
U.S. Pension Benefits | Partnership units | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 468 | 462 | |
U.S. Pension Benefits | Partnership units | Level 1 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Benefits | Partnership units | Level 2 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Benefits | Partnership units | Level 3 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 468 | 462 | |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | |||
Beginning balance | 462 | 472 | |
Total realized gains included in income | 25 | 10 | |
Total unrealized gains included in accumulated other comprehensive (loss) income | 28 | (143) | |
Purchases and sales, net | (47) | 123 | |
Ending balance | 468 | 462 | |
Non-U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 1,235 | 1,113 | $ 1,189 |
Investments Measured at Net Asset Value | 1,191 | 1,037 | |
Non-U.S. Pension Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Pension Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Pension Benefits | Level 3 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 44 | 76 | |
Non-U.S. Pension Benefits | Investments | Level 3 | |||
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | |||
Beginning balance | 76 | 76 | |
Total unrealized gains included in accumulated other comprehensive (loss) income | 2 | ||
Purchases and sales, net | (31) | (2) | |
Currency exchange rate changes | (3) | 2 | |
Ending balance | 44 | 76 | |
Non-U.S. Pension Benefits | Partnership units | Level 3 | |||
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | |||
Beginning balance | 0 | 16 | |
Purchases and sales, net | (16) | ||
Currency exchange rate changes | 0 | ||
Ending balance | 0 | ||
Non-U.S. Pension Benefits | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 1,191 | 1,037 | |
Investments Measured at Net Asset Value | 1,191 | 1,037 | |
Non-U.S. Pension Benefits | Registered investment companies | Level 1 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Pension Benefits | Registered investment companies | Level 2 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Pension Benefits | Registered investment companies | Level 3 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Pension Benefits | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 44 | 76 | |
Non-U.S. Pension Benefits | Insurance contracts | Level 1 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Pension Benefits | Insurance contracts | Level 2 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Pension Benefits | Insurance contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 44 | 76 | |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | |||
Beginning balance | 76 | 60 | |
Total unrealized gains included in accumulated other comprehensive (loss) income | 2 | ||
Purchases and sales, net | (31) | 14 | |
Currency exchange rate changes | (3) | 2 | |
Ending balance | $ 44 | $ 76 |
Retirement Benefit Plans , Futu
Retirement Benefit Plans , Future Benefit Payments (Details) - Pension benefits $ in Millions | Apr. 28, 2017USD ($) |
U.S. Pension Benefits | |
Estimated Future Benefit Payments | |
2,018 | $ 101 |
2,019 | 110 |
2,020 | 121 |
2,021 | 131 |
2,022 | 143 |
2023 – 2027 | 901 |
Total | 1,507 |
Non-U.S. Pension Benefits | |
Estimated Future Benefit Payments | |
2,018 | 44 |
2,019 | 42 |
2,020 | 43 |
2,021 | 46 |
2,022 | 50 |
2023 – 2027 | 298 |
Total | $ 523 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Capitalized Leases | |||
2,018 | $ 6 | ||
2,019 | 4 | ||
2,020 | 4 | ||
2,021 | 3 | ||
2,022 | 3 | ||
Thereafter | 8 | ||
Total minimum lease payments | 28 | ||
Less amounts representing interest | (5) | ||
Present value of net minimum lease payments | 23 | ||
Operating Leases | |||
2,018 | 215 | ||
2,019 | 158 | ||
2,020 | 110 | ||
2,021 | 70 | ||
2,022 | 41 | ||
Thereafter | 52 | ||
Total minimum lease payments | 646 | ||
Rent expense for operating leases | $ 294 | $ 269 | $ 195 |
Accumulated Other Comprehensi96
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | $ 52,063 | $ 53,230 | $ 19,443 |
Other comprehensive loss | (744) | (684) | (587) |
Balance | 50,416 | 52,063 | 53,230 |
Unrealized Gain (Loss) on Available-for-Sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (107) | 14 | |
Other comprehensive (loss) income before reclassifications | 52 | (107) | |
Reclassifications | (14) | (14) | |
Other comprehensive loss | 38 | (121) | |
Balance | (69) | (107) | 14 |
Other comprehensive income (loss), tax expense (benefit) | 41 | (94) | 60 |
Reclassifications from AOCI, tax expense (benefit) | 8 | 8 | 49 |
Cumulative Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (474) | (277) | |
Other comprehensive (loss) income before reclassifications | (978) | (197) | |
Reclassifications | 0 | 0 | |
Other comprehensive loss | (978) | (197) | |
Balance | (1,452) | (474) | (277) |
Net Change in Retirement Obligations | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (1,197) | (1,131) | |
Other comprehensive (loss) income before reclassifications | (17) | (141) | |
Reclassifications | 85 | 75 | |
Other comprehensive loss | 68 | (66) | |
Balance | (1,129) | (1,197) | (1,131) |
Other comprehensive income (loss), tax expense (benefit) | 41 | (85) | (198) |
Reclassifications from AOCI, tax expense (benefit) | 23 | 39 | 25 |
Unrealized Gain (Loss) on Derivative Financial Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (90) | 210 | |
Other comprehensive (loss) income before reclassifications | 233 | (94) | |
Reclassifications | (106) | (206) | |
Other comprehensive loss | 127 | (300) | |
Balance | 37 | (90) | 210 |
Other comprehensive income (loss), tax expense (benefit) | 130 | (51) | 199 |
Reclassifications from AOCI, tax expense (benefit) | 61 | 121 | 53 |
Total Accumulated Other Comprehensive (Loss) Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (1,868) | (1,184) | (597) |
Other comprehensive (loss) income before reclassifications | (710) | (539) | |
Reclassifications | (35) | (145) | |
Other comprehensive loss | (745) | (684) | (587) |
Balance | $ (2,613) | $ (1,868) | $ (1,184) |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 01, 2017claim | Dec. 14, 2011patent | Jun. 29, 2007 | May 31, 2017claim | Apr. 28, 2017USD ($)claimlandfill | Apr. 29, 2016USD ($)claim | Apr. 25, 2014USD ($) |
Loss Contingencies [Line Items] | |||||||
Accrued certain litigations charges | $ | $ 1,100 | $ 1,000 | |||||
Covidien plc | |||||||
Loss Contingencies [Line Items] | |||||||
Tax sharing percentage, parent | 42.00% | ||||||
Tax sharing percentage, former parent | 27.00% | ||||||
Tax sharing percentage, former affiliate | 31.00% | ||||||
Orrington, Maine Chemical Manufacturing Facility | |||||||
Loss Contingencies [Line Items] | |||||||
Number of landfills requiring removal | landfill | 2 | ||||||
Number of landfills requiring capping | landfill | 3 | ||||||
Indemnification agreement | Covidien plc | Tax years prior to 2013 | |||||||
Loss Contingencies [Line Items] | |||||||
Tax indemnification (exceed) | $ | $ 200 | ||||||
INFUSE Product Liability Litigation | Damages from product defects | |||||||
Loss Contingencies [Line Items] | |||||||
Number of claimants | claim | 6,000 | ||||||
Pelvic Mesh Litigation | Damages from product defects | |||||||
Loss Contingencies [Line Items] | |||||||
Number of claims settled | claim | 11,000 | ||||||
Settlement consideration received | $ | $ 121 | ||||||
Number of lawsuits filed | claim | 15,800 | ||||||
Pelvic Mesh Litigation | Damages from product defects | Subsequent event | |||||||
Loss Contingencies [Line Items] | |||||||
Number of claims settled | claim | 12,300 | 5,000 | |||||
Ethicon Patent Infringement Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of patents allegedly infringed upon | patent | 1 | ||||||
Number of claims dismissed | claim | 6 | ||||||
Minimum | Penobscot River and Bay Remediation | |||||||
Loss Contingencies [Line Items] | |||||||
Cost estimate | $ | $ 25 | ||||||
Maximum | Penobscot River and Bay Remediation | |||||||
Loss Contingencies [Line Items] | |||||||
Cost estimate | $ | $ 235 |
Quarterly Financial Data (una98
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2017 | Jan. 27, 2017 | Oct. 28, 2016 | Jul. 29, 2016 | Apr. 29, 2016 | Jan. 29, 2016 | Oct. 30, 2015 | Jul. 31, 2015 | Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 7,916 | $ 7,283 | $ 7,345 | $ 7,166 | $ 7,567 | $ 6,934 | $ 7,058 | $ 7,274 | $ 29,710 | $ 28,833 | $ 20,261 |
Gross profit | 5,480 | 5,015 | 5,019 | 4,905 | 5,204 | 4,793 | 4,876 | 4,818 | 20,419 | 19,691 | |
Net income | 1,164 | 820 | 1,111 | 929 | 1,104 | 1,095 | 520 | 820 | 4,024 | 3,538 | 2,675 |
Net income attributable to Medtronic | $ 1,163 | $ 821 | $ 1,115 | $ 929 | $ 1,104 | $ 1,095 | $ 520 | $ 820 | $ 4,028 | $ 3,538 | $ 2,675 |
Basic earnings per share: | |||||||||||
Basic Earnings per Share (in dollars per share) | $ 0.85 | $ 0.60 | $ 0.81 | $ 0.67 | $ 0.79 | $ 0.78 | $ 0.37 | $ 0.58 | $ 2.92 | $ 2.51 | $ 2.44 |
Diluted earnings per share: | |||||||||||
Diluted Earnings per Share (in dollars per share) | $ 0.84 | $ 0.59 | $ 0.80 | $ 0.66 | $ 0.78 | $ 0.77 | $ 0.36 | $ 0.57 | $ 2.89 | $ 2.48 | $ 2.41 |
Segment and Geographic Inform99
Segment and Geographic Information (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2017USD ($) | Jan. 27, 2017USD ($) | Oct. 28, 2016USD ($) | Jul. 29, 2016USD ($) | Apr. 29, 2016USD ($) | Jan. 29, 2016USD ($) | Oct. 30, 2015USD ($) | Jul. 31, 2015USD ($) | Apr. 28, 2017USD ($)subsegment | Apr. 29, 2016USD ($) | Apr. 24, 2015USD ($) | |
Segment Reporting Information | |||||||||||
Total | $ 7,916,000,000 | $ 7,283,000,000 | $ 7,345,000,000 | $ 7,166,000,000 | $ 7,567,000,000 | $ 6,934,000,000 | $ 7,058,000,000 | $ 7,274,000,000 | $ 29,710,000,000 | $ 28,833,000,000 | $ 20,261,000,000 |
Special charge (gain), net | (100,000,000) | (70,000,000) | 38,000,000 | ||||||||
Certain litigation charges | (300,000,000) | (26,000,000) | (42,000,000) | ||||||||
Acquisition-related items | (220,000,000) | (283,000,000) | (550,000,000) | ||||||||
Amortization of intangible assets | (1,980,000,000) | (1,931,000,000) | (733,000,000) | ||||||||
Centralized distribution costs | (1,543,000,000) | (1,177,000,000) | (794,000,000) | ||||||||
Income before provision for income taxes | 4,602,000,000 | 4,336,000,000 | 3,486,000,000 | ||||||||
Total Assets | 99,816,000,000 | 99,644,000,000 | 99,816,000,000 | 99,644,000,000 | |||||||
Property, plant, and equipment, net | 4,361,000,000 | 4,841,000,000 | 4,361,000,000 | 4,841,000,000 | |||||||
Americas | |||||||||||
Segment Reporting Information | |||||||||||
Total | 17,939,000,000 | 17,578,000,000 | 12,125,000,000 | ||||||||
Property, plant, and equipment, net | 3,270,000,000 | 3,728,000,000 | 3,270,000,000 | 3,728,000,000 | |||||||
U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total | 16,700,000,000 | 16,400,000,000 | 11,300,000,000 | ||||||||
Property, plant, and equipment, net | 2,500,000,000 | 3,300,000,000 | 2,500,000,000 | 3,300,000,000 | |||||||
EMEA | |||||||||||
Segment Reporting Information | |||||||||||
Total | 6,739,000,000 | 6,700,000,000 | 5,064,000,000 | ||||||||
Property, plant, and equipment, net | 709,000,000 | 708,000,000 | 709,000,000 | 708,000,000 | |||||||
Asia Pacific | |||||||||||
Segment Reporting Information | |||||||||||
Total | 3,443,000,000 | 3,060,000,000 | 2,059,000,000 | ||||||||
Property, plant, and equipment, net | 192,000,000 | 220,000,000 | 192,000,000 | 220,000,000 | |||||||
Greater China | |||||||||||
Segment Reporting Information | |||||||||||
Total | 1,589,000,000 | 1,495,000,000 | 1,013,000,000 | ||||||||
Property, plant, and equipment, net | 190,000,000 | 185,000,000 | 190,000,000 | 185,000,000 | |||||||
Ireland | |||||||||||
Segment Reporting Information | |||||||||||
Property, plant, and equipment, net | 171,000,000 | 169,000,000 | $ 171,000,000 | 169,000,000 | |||||||
Cardiac and Vascular Group | |||||||||||
Segment Reporting Information | |||||||||||
Number of divisions | subsegment | 3 | ||||||||||
Minimally Invasive Therapies Group | |||||||||||
Segment Reporting Information | |||||||||||
Number of divisions | subsegment | 2 | ||||||||||
Restorative Therapies Group | |||||||||||
Segment Reporting Information | |||||||||||
Number of divisions | subsegment | 4 | ||||||||||
Reportable segments | |||||||||||
Segment Reporting Information | |||||||||||
Reportable segments' EBITA before other adjustments | $ 11,126,000,000 | 10,697,000,000 | 7,719,000,000 | ||||||||
Total Assets | 82,523,000,000 | 82,946,000,000 | 82,523,000,000 | 82,946,000,000 | |||||||
Reportable segments | Cardiac and Vascular Group | |||||||||||
Segment Reporting Information | |||||||||||
Total | 10,498,000,000 | 10,196,000,000 | 9,361,000,000 | ||||||||
Reportable segments' EBITA before other adjustments | 4,134,000,000 | 3,986,000,000 | 3,836,000,000 | ||||||||
Total Assets | 15,192,000,000 | 13,563,000,000 | 15,192,000,000 | 13,563,000,000 | |||||||
Reportable segments | Minimally Invasive Therapies Group | |||||||||||
Segment Reporting Information | |||||||||||
Total | 9,919,000,000 | 9,563,000,000 | 2,387,000,000 | ||||||||
Reportable segments' EBITA before other adjustments | 3,434,000,000 | 3,373,000,000 | 775,000,000 | ||||||||
Total Assets | 49,249,000,000 | 52,227,000,000 | 49,249,000,000 | 52,227,000,000 | |||||||
Reportable segments | Restorative Therapies Group | |||||||||||
Segment Reporting Information | |||||||||||
Total | 7,366,000,000 | 7,210,000,000 | 6,751,000,000 | ||||||||
Reportable segments' EBITA before other adjustments | 2,868,000,000 | 2,671,000,000 | 2,445,000,000 | ||||||||
Total Assets | 15,441,000,000 | 14,564,000,000 | 15,441,000,000 | 14,564,000,000 | |||||||
Reportable segments | Diabetes Group | |||||||||||
Segment Reporting Information | |||||||||||
Total | 1,927,000,000 | 1,864,000,000 | 1,762,000,000 | ||||||||
Reportable segments' EBITA before other adjustments | 690,000,000 | 667,000,000 | 663,000,000 | ||||||||
Total Assets | 2,641,000,000 | 2,592,000,000 | 2,641,000,000 | 2,592,000,000 | |||||||
Segment reconciling items | |||||||||||
Segment Reporting Information | |||||||||||
Impact of inventory step-up | (38,000,000) | (226,000,000) | (623,000,000) | ||||||||
Impact of product technology upgrade commitment | 0 | 0 | (74,000,000) | ||||||||
Special charge (gain), net | (100,000,000) | (70,000,000) | 38,000,000 | ||||||||
Restructuring charges, net | (373,000,000) | (299,000,000) | (252,000,000) | ||||||||
Certain litigation charges | (300,000,000) | (26,000,000) | (42,000,000) | ||||||||
Acquisition-related items | (230,000,000) | (283,000,000) | (550,000,000) | ||||||||
Interest expense, net | (728,000,000) | (955,000,000) | (280,000,000) | ||||||||
Corporate | |||||||||||
Segment Reporting Information | |||||||||||
Corporate | (1,232,000,000) | (1,394,000,000) | $ (923,000,000) | ||||||||
Total Assets | 17,293,000,000 | 16,698,000,000 | 17,293,000,000 | 16,698,000,000 | |||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency Business | |||||||||||
Segment Reporting Information | |||||||||||
Assets held for sale | $ 6,290,000,000 | $ 0 | $ 6,290,000,000 | $ 0 |
Guarantor Financial Informat100
Guarantor Financial Information , Additional Information (Details) $ in Millions | 12 Months Ended | ||||
Apr. 28, 2017USD ($) | Apr. 29, 2016USD ($) | Apr. 24, 2015USD ($) | Mar. 31, 2017tranche | Apr. 25, 2014USD ($) | |
Income Statement [Abstract] | |||||
Equity in net (income) loss of subsidiaries | $ 0 | $ 0 | $ 0 | ||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | 0 | 0 | |||
Total equity | 50,416 | 52,063 | 53,230 | $ 19,443 | |
Shareholders’ equity | 50,294 | 52,063 | |||
Intercompany payable | 0 | 0 | |||
Intercompany receivable | 0 | 0 | |||
Subsidiary Issuer | Medtronic Notes | |||||
Income Statement [Abstract] | |||||
Equity in net (income) loss of subsidiaries | (2,484) | (2,447) | (5,500) | ||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | 71,931 | 68,903 | |||
Total equity | 30,089 | 29,019 | |||
Shareholders’ equity | 30,089 | ||||
Intercompany payable | 12,669 | 151,687 | |||
Intercompany receivable | 0 | 141,368 | |||
Subsidiary Issuer | CIFSA Senior Notes | |||||
Income Statement [Abstract] | |||||
Equity in net (income) loss of subsidiaries | (2,329) | (2,043) | 1,085 | ||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | 31,033 | 36,476 | |||
Total equity | 29,343 | 26,842 | |||
Shareholders’ equity | 29,343 | ||||
Intercompany payable | 0 | 0 | |||
Intercompany receivable | 0 | 0 | |||
Medtronic plc | Medtronic Notes | |||||
Income Statement [Abstract] | |||||
Equity in net (income) loss of subsidiaries | (4,163) | (3,676) | (2,790) | ||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | 55,833 | 52,608 | |||
Total equity | 50,294 | 52,063 | |||
Shareholders’ equity | 50,294 | ||||
Intercompany payable | 12 | 0 | |||
Intercompany receivable | 63 | 403 | |||
Medtronic plc | CIFSA Senior Notes | |||||
Income Statement [Abstract] | |||||
Equity in net (income) loss of subsidiaries | (4,163) | (3,676) | (2,790) | ||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | 55,833 | 52,608 | |||
Total equity | 50,294 | 52,063 | |||
Shareholders’ equity | 50,294 | ||||
Intercompany payable | 12 | 0 | |||
Intercompany receivable | 63 | 403 | |||
Subsidiary Guarantors | Medtronic Notes | |||||
Income Statement [Abstract] | |||||
Equity in net (income) loss of subsidiaries | (3,576) | (2,980) | (2,620) | ||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | 52,618 | 49,698 | |||
Total equity | 48,830 | 45,604 | |||
Shareholders’ equity | 48,830 | ||||
Intercompany payable | 0 | 0 | |||
Intercompany receivable | 0 | 0 | |||
Subsidiary Guarantors | CIFSA Senior Notes | |||||
Income Statement [Abstract] | |||||
Equity in net (income) loss of subsidiaries | (3,575) | (2,961) | (2,667) | ||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | 51,294 | 48,375 | |||
Total equity | 48,830 | 45,604 | |||
Shareholders’ equity | 48,830 | ||||
Intercompany payable | 0 | 0 | |||
Intercompany receivable | 60 | 61 | |||
Subsidiary Non-guarantors | Medtronic Notes | |||||
Income Statement [Abstract] | |||||
Equity in net (income) loss of subsidiaries | 0 | 0 | 0 | ||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | 0 | 0 | |||
Total equity | 101,763 | 96,786 | |||
Shareholders’ equity | 101,641 | ||||
Intercompany payable | 0 | 152,362 | |||
Intercompany receivable | 12,618 | 162,278 | |||
Subsidiary Non-guarantors | CIFSA Senior Notes | |||||
Income Statement [Abstract] | |||||
Equity in net (income) loss of subsidiaries | 0 | 0 | $ 0 | ||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | 0 | 0 | |||
Total equity | 60,109 | 65,013 | |||
Shareholders’ equity | 59,987 | ||||
Intercompany payable | 123 | 464 | |||
Intercompany receivable | $ 12 | 0 | |||
Error correction, equity in net (income) loss of subsidiaries | Subsidiary Issuer | Medtronic Notes | Restatement Adjustment | |||||
Income Statement [Abstract] | |||||
Equity in net (income) loss of subsidiaries | (7,100) | ||||
Error correction, equity in net (income) loss of subsidiaries | Subsidiary Issuer | CIFSA Senior Notes | Restatement Adjustment | |||||
Income Statement [Abstract] | |||||
Equity in net (income) loss of subsidiaries | 7,100 | ||||
Error correction, investment in subsidiaries | Subsidiary Issuer | Medtronic Notes | Restatement Adjustment | |||||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | 5,100 | ||||
Total equity | 5,100 | ||||
Error correction, investment in subsidiaries | Subsidiary Issuer | CIFSA Senior Notes | Restatement Adjustment | |||||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | (5,100) | ||||
Total equity | (5,100) | ||||
Error correction, intercompany balances | Subsidiary Issuer | Medtronic Notes | Restatement Adjustment | |||||
Statement of Financial Position [Abstract] | |||||
Total equity | (20,500) | ||||
Intercompany receivable | (20,500) | ||||
Error correction, intercompany balances | Medtronic plc | Medtronic Notes | Restatement Adjustment | |||||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | (20,500) | ||||
Intercompany payable | (20,500) | ||||
Error correction, intercompany balances | Medtronic plc | CIFSA Senior Notes | Restatement Adjustment | |||||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | (20,500) | ||||
Intercompany payable | (20,500) | ||||
Error correction, intercompany balances | Subsidiary Guarantors | Medtronic Notes | Restatement Adjustment | |||||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | (20,500) | ||||
Total equity | (20,500) | ||||
Error correction, intercompany balances | Subsidiary Guarantors | CIFSA Senior Notes | Restatement Adjustment | |||||
Statement of Financial Position [Abstract] | |||||
Investment in subsidiaries | (20,500) | ||||
Total equity | (20,500) | ||||
Error correction, intercompany balances | Subsidiary Non-guarantors | Medtronic Notes | Restatement Adjustment | |||||
Statement of Financial Position [Abstract] | |||||
Total equity | (20,500) | ||||
Intercompany receivable | $ (20,500) | ||||
Senior notes | 2017 Senior Notes | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Number of tranches | tranche | 2 |
Guarantor Financial Informat101
Guarantor Financial Information , Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2017 | Jan. 27, 2017 | Oct. 28, 2016 | Jul. 29, 2016 | Apr. 29, 2016 | Jan. 29, 2016 | Oct. 30, 2015 | Jul. 31, 2015 | Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | $ 7,916 | $ 7,283 | $ 7,345 | $ 7,166 | $ 7,567 | $ 6,934 | $ 7,058 | $ 7,274 | $ 29,710 | $ 28,833 | $ 20,261 |
Costs and expenses: | |||||||||||
Cost of products sold | 9,291 | 9,142 | 6,309 | ||||||||
Research and development expense | 2,193 | 2,224 | 1,640 | ||||||||
Selling, general, and administrative expense | 9,711 | 9,469 | 6,904 | ||||||||
Special charge (gain), net | 100 | 70 | (38) | ||||||||
Restructuring charges, net | 363 | 290 | 237 | ||||||||
Certain litigation charges | 300 | 26 | 42 | ||||||||
Acquisition-related items | 220 | 283 | 550 | ||||||||
Amortization of intangible assets | 1,980 | 1,931 | 733 | ||||||||
Other expense, net | 222 | 107 | 118 | ||||||||
Operating profit | 5,330 | 5,291 | 3,766 | ||||||||
Interest income | (366) | (431) | (386) | ||||||||
Interest expense | 1,094 | 1,386 | 666 | ||||||||
Interest expense, net | 728 | 955 | 280 | ||||||||
Equity in net (income) loss of subsidiaries | 0 | 0 | 0 | ||||||||
Income before provision for income taxes | 4,602 | 4,336 | 3,486 | ||||||||
Provision for income taxes | 578 | 798 | 811 | ||||||||
Net income | 1,164 | 820 | 1,111 | 929 | 1,104 | 1,095 | 520 | 820 | 4,024 | 3,538 | 2,675 |
Net loss attributable to noncontrolling interests | 4 | 0 | 0 | ||||||||
Net income attributable to Medtronic | $ 1,163 | $ 821 | $ 1,115 | $ 929 | $ 1,104 | $ 1,095 | $ 520 | $ 820 | 4,028 | 3,538 | 2,675 |
Other comprehensive loss | (744) | (684) | (587) | ||||||||
Other comprehensive loss attributable to non-controlling interests | 3 | ||||||||||
Other comprehensive (loss) income, net of tax | (684) | (587) | |||||||||
Comprehensive income attributable to Medtronic | 3,283 | 2,854 | 2,088 | ||||||||
Consolidating Adjustments | Medtronic Notes | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | (1,294) | (1,410) | (1,261) | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold | (1,317) | (1,410) | (1,245) | ||||||||
Research and development expense | 0 | 0 | 0 | ||||||||
Selling, general, and administrative expense | 0 | 0 | 0 | ||||||||
Special charge (gain), net | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 0 | 0 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Acquisition-related items | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | 0 | 0 | ||||||||
Operating profit | 23 | 0 | (16) | ||||||||
Interest income | 1,598 | 960 | 227 | ||||||||
Interest expense | (1,598) | (960) | (227) | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Equity in net (income) loss of subsidiaries | 10,223 | 9,103 | 10,910 | ||||||||
Income before provision for income taxes | (10,200) | (9,103) | (10,926) | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Net income | (10,200) | ||||||||||
Net loss attributable to noncontrolling interests | 0 | ||||||||||
Net income attributable to Medtronic | (10,200) | (9,103) | (10,926) | ||||||||
Other comprehensive loss | 1,563 | ||||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | ||||||||||
Other comprehensive (loss) income, net of tax | 1,850 | 1,361 | |||||||||
Comprehensive income attributable to Medtronic | (8,637) | (7,253) | (9,565) | ||||||||
Consolidating Adjustments | CIFSA Senior Notes | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold | 0 | 0 | 0 | ||||||||
Research and development expense | 0 | 0 | 0 | ||||||||
Selling, general, and administrative expense | 0 | 0 | 0 | ||||||||
Special charge (gain), net | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 0 | 0 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Acquisition-related items | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | 0 | 0 | ||||||||
Operating profit | 0 | 0 | 0 | ||||||||
Interest income | 805 | 1,177 | 319 | ||||||||
Interest expense | (805) | (1,177) | (319) | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Equity in net (income) loss of subsidiaries | 10,067 | 8,680 | 4,372 | ||||||||
Income before provision for income taxes | (10,067) | (8,680) | (4,372) | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Net income | (10,067) | ||||||||||
Net loss attributable to noncontrolling interests | 0 | ||||||||||
Net income attributable to Medtronic | (10,067) | (8,680) | (4,372) | ||||||||
Other comprehensive loss | 1,574 | ||||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | ||||||||||
Other comprehensive (loss) income, net of tax | 1,470 | 974 | |||||||||
Comprehensive income attributable to Medtronic | (8,493) | (7,210) | (3,398) | ||||||||
Medtronic plc | Medtronic Notes | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold | 0 | 0 | 0 | ||||||||
Research and development expense | 0 | 0 | 0 | ||||||||
Selling, general, and administrative expense | 12 | 10 | 1 | ||||||||
Special charge (gain), net | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 0 | 0 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Acquisition-related items | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Other expense, net | 18 | 112 | 103 | ||||||||
Operating profit | (30) | (122) | (104) | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 113 | 25 | 0 | ||||||||
Interest expense, net | 113 | 25 | 0 | ||||||||
Equity in net (income) loss of subsidiaries | (4,163) | (3,676) | (2,790) | ||||||||
Income before provision for income taxes | 4,020 | 3,529 | 2,686 | ||||||||
Provision for income taxes | (8) | (9) | 11 | ||||||||
Net income | 4,028 | ||||||||||
Net loss attributable to noncontrolling interests | 0 | ||||||||||
Net income attributable to Medtronic | 4,028 | 3,538 | 2,675 | ||||||||
Other comprehensive loss | (745) | ||||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | ||||||||||
Other comprehensive (loss) income, net of tax | (684) | (587) | |||||||||
Comprehensive income attributable to Medtronic | 3,283 | 2,854 | 2,088 | ||||||||
Medtronic plc | CIFSA Senior Notes | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold | 0 | 0 | 0 | ||||||||
Research and development expense | 0 | 0 | 0 | ||||||||
Selling, general, and administrative expense | 12 | 10 | 1 | ||||||||
Special charge (gain), net | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 0 | 0 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Acquisition-related items | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Other expense, net | 18 | 112 | 103 | ||||||||
Operating profit | (30) | (122) | (104) | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 113 | 25 | 0 | ||||||||
Interest expense, net | 113 | 25 | 0 | ||||||||
Equity in net (income) loss of subsidiaries | (4,163) | (3,676) | (2,790) | ||||||||
Income before provision for income taxes | 4,020 | 3,529 | 2,686 | ||||||||
Provision for income taxes | (8) | (9) | 11 | ||||||||
Net income | 4,028 | ||||||||||
Net loss attributable to noncontrolling interests | 0 | ||||||||||
Net income attributable to Medtronic | 4,028 | 3,538 | 2,675 | ||||||||
Other comprehensive loss | (745) | ||||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | ||||||||||
Other comprehensive (loss) income, net of tax | (684) | (587) | |||||||||
Comprehensive income attributable to Medtronic | 3,283 | 2,854 | 2,088 | ||||||||
Subsidiary Issuer | Medtronic Notes | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | 1,296 | 1,411 | 1,261 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold | 932 | 991 | 895 | ||||||||
Research and development expense | 636 | 627 | 552 | ||||||||
Selling, general, and administrative expense | 1,163 | 991 | 857 | ||||||||
Special charge (gain), net | 100 | 70 | 100 | ||||||||
Restructuring charges, net | 114 | 17 | 7 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Acquisition-related items | 133 | 135 | 312 | ||||||||
Amortization of intangible assets | 11 | 12 | 11 | ||||||||
Other expense, net | (2,954) | (2,329) | (1,618) | ||||||||
Operating profit | 1,161 | 897 | 145 | ||||||||
Interest income | (250) | (237) | (56) | ||||||||
Interest expense | 1,652 | 1,906 | 762 | ||||||||
Interest expense, net | 1,402 | 1,669 | 706 | ||||||||
Equity in net (income) loss of subsidiaries | (2,484) | (2,447) | (5,500) | ||||||||
Income before provision for income taxes | 2,243 | 1,675 | 4,939 | ||||||||
Provision for income taxes | (1) | (96) | (44) | ||||||||
Net income | 2,244 | ||||||||||
Net loss attributable to noncontrolling interests | 0 | ||||||||||
Net income attributable to Medtronic | 2,244 | 1,771 | 4,983 | ||||||||
Other comprehensive loss | 111 | ||||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | ||||||||||
Other comprehensive (loss) income, net of tax | (493) | (542) | |||||||||
Comprehensive income attributable to Medtronic | 2,355 | 1,278 | 4,441 | ||||||||
Subsidiary Issuer | CIFSA Senior Notes | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold | 0 | 0 | 0 | ||||||||
Research and development expense | 0 | 0 | 0 | ||||||||
Selling, general, and administrative expense | 1 | 1 | 0 | ||||||||
Special charge (gain), net | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 0 | 0 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Acquisition-related items | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Other expense, net | 1 | 1 | 0 | ||||||||
Operating profit | (2) | (2) | 0 | ||||||||
Interest income | (82) | (434) | (149) | ||||||||
Interest expense | 104 | 138 | 29 | ||||||||
Interest expense, net | 22 | (296) | (120) | ||||||||
Equity in net (income) loss of subsidiaries | (2,329) | (2,043) | 1,085 | ||||||||
Income before provision for income taxes | 2,305 | 2,337 | (965) | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Net income | 2,305 | ||||||||||
Net loss attributable to noncontrolling interests | 0 | ||||||||||
Net income attributable to Medtronic | 2,305 | 2,337 | (965) | ||||||||
Other comprehensive loss | (84) | ||||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | ||||||||||
Other comprehensive (loss) income, net of tax | (102) | 200 | |||||||||
Comprehensive income attributable to Medtronic | 2,221 | 2,235 | (765) | ||||||||
Subsidiary Guarantors | Medtronic Notes | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold | 0 | 0 | 0 | ||||||||
Research and development expense | 0 | 0 | 0 | ||||||||
Selling, general, and administrative expense | 0 | 0 | 0 | ||||||||
Special charge (gain), net | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 0 | 0 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Acquisition-related items | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | 0 | 0 | ||||||||
Operating profit | 0 | 0 | 0 | ||||||||
Interest income | (649) | (706) | (170) | ||||||||
Interest expense | 62 | 10 | 0 | ||||||||
Interest expense, net | (587) | (696) | (170) | ||||||||
Equity in net (income) loss of subsidiaries | (3,576) | (2,980) | (2,620) | ||||||||
Income before provision for income taxes | 4,163 | 3,676 | 2,790 | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Net income | 4,163 | ||||||||||
Net loss attributable to noncontrolling interests | 0 | ||||||||||
Net income attributable to Medtronic | 4,163 | 3,676 | 2,790 | ||||||||
Other comprehensive loss | (745) | ||||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | ||||||||||
Other comprehensive (loss) income, net of tax | (684) | (587) | |||||||||
Comprehensive income attributable to Medtronic | 3,418 | 2,992 | 2,203 | ||||||||
Subsidiary Guarantors | CIFSA Senior Notes | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold | 0 | 0 | 0 | ||||||||
Research and development expense | 0 | 0 | 0 | ||||||||
Selling, general, and administrative expense | 2 | 3 | 21 | ||||||||
Special charge (gain), net | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 0 | 0 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Acquisition-related items | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Other expense, net | 4 | (18) | 26 | ||||||||
Operating profit | (6) | 15 | (47) | ||||||||
Interest income | (656) | (710) | (170) | ||||||||
Interest expense | 62 | 10 | 0 | ||||||||
Interest expense, net | (594) | (700) | (170) | ||||||||
Equity in net (income) loss of subsidiaries | (3,575) | (2,961) | (2,667) | ||||||||
Income before provision for income taxes | 4,163 | 3,676 | 2,790 | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Net income | 4,163 | ||||||||||
Net loss attributable to noncontrolling interests | 0 | ||||||||||
Net income attributable to Medtronic | 4,163 | 3,676 | 2,790 | ||||||||
Other comprehensive loss | (745) | ||||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | ||||||||||
Other comprehensive (loss) income, net of tax | (684) | (587) | |||||||||
Comprehensive income attributable to Medtronic | 3,418 | 2,992 | 2,203 | ||||||||
Subsidiary Non-guarantors | Medtronic Notes | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | 29,708 | 28,832 | 20,261 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold | 9,676 | 9,561 | 6,659 | ||||||||
Research and development expense | 1,557 | 1,597 | 1,088 | ||||||||
Selling, general, and administrative expense | 8,536 | 8,468 | 6,046 | ||||||||
Special charge (gain), net | 0 | 0 | (138) | ||||||||
Restructuring charges, net | 249 | 273 | 230 | ||||||||
Certain litigation charges | 300 | 26 | 42 | ||||||||
Acquisition-related items | 87 | 148 | 238 | ||||||||
Amortization of intangible assets | 1,969 | 1,919 | 722 | ||||||||
Other expense, net | 3,158 | 2,324 | 1,633 | ||||||||
Operating profit | 4,176 | 4,516 | 3,741 | ||||||||
Interest income | (1,065) | (448) | (387) | ||||||||
Interest expense | 865 | 405 | 131 | ||||||||
Interest expense, net | (200) | (43) | (256) | ||||||||
Equity in net (income) loss of subsidiaries | 0 | 0 | 0 | ||||||||
Income before provision for income taxes | 4,376 | 4,559 | 3,997 | ||||||||
Provision for income taxes | 587 | 903 | 844 | ||||||||
Net income | 3,789 | ||||||||||
Net loss attributable to noncontrolling interests | 4 | ||||||||||
Net income attributable to Medtronic | 3,793 | 3,656 | 3,153 | ||||||||
Other comprehensive loss | (928) | ||||||||||
Other comprehensive loss attributable to non-controlling interests | 3 | ||||||||||
Other comprehensive (loss) income, net of tax | (673) | (232) | |||||||||
Comprehensive income attributable to Medtronic | 2,864 | 2,983 | 2,921 | ||||||||
Subsidiary Non-guarantors | CIFSA Senior Notes | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | 29,710 | 28,833 | 20,261 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold | 9,291 | 9,142 | 6,309 | ||||||||
Research and development expense | 2,193 | 2,224 | 1,640 | ||||||||
Selling, general, and administrative expense | 9,696 | 9,455 | 6,882 | ||||||||
Special charge (gain), net | 100 | 70 | (38) | ||||||||
Restructuring charges, net | 363 | 290 | 237 | ||||||||
Certain litigation charges | 300 | 26 | 42 | ||||||||
Acquisition-related items | 220 | 283 | 550 | ||||||||
Amortization of intangible assets | 1,980 | 1,931 | 733 | ||||||||
Other expense, net | 199 | 12 | (11) | ||||||||
Operating profit | 5,368 | 5,400 | 3,917 | ||||||||
Interest income | (433) | (464) | (386) | ||||||||
Interest expense | 1,620 | 2,390 | 956 | ||||||||
Interest expense, net | 1,187 | 1,926 | 570 | ||||||||
Equity in net (income) loss of subsidiaries | 0 | 0 | 0 | ||||||||
Income before provision for income taxes | 4,181 | 3,474 | 3,347 | ||||||||
Provision for income taxes | 586 | 807 | 800 | ||||||||
Net income | 3,595 | ||||||||||
Net loss attributable to noncontrolling interests | 4 | ||||||||||
Net income attributable to Medtronic | 3,599 | 2,667 | 2,547 | ||||||||
Other comprehensive loss | (744) | ||||||||||
Other comprehensive loss attributable to non-controlling interests | 3 | ||||||||||
Other comprehensive (loss) income, net of tax | (684) | (587) | |||||||||
Comprehensive income attributable to Medtronic | $ 2,854 | $ 1,983 | $ 1,960 |
Guarantor Financial Informat102
Guarantor Financial Information , Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | Apr. 25, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 4,967 | $ 2,876 | $ 4,843 | $ 1,403 |
Investments | 8,741 | 9,758 | ||
Accounts receivable, net | 5,591 | 5,562 | ||
Inventories, net | 3,338 | 3,473 | ||
Intercompany receivable | 0 | 0 | ||
Prepaid expenses and other current assets | 1,865 | 1,931 | ||
Current assets held for sale | 371 | 0 | ||
Total current assets | 24,873 | 23,600 | ||
Property, plant, and equipment, net | 4,361 | 4,841 | ||
Goodwill | 38,515 | 41,500 | 40,530 | |
Other intangible assets, net | 23,407 | 26,899 | ||
Tax assets | 1,509 | 1,383 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany loans receivable | 0 | 0 | ||
Other assets | 1,232 | 1,421 | ||
Noncurrent assets held for sale | 5,919 | 0 | ||
Total assets | 99,816 | 99,644 | ||
Current liabilities: | ||||
Current debt obligations | 7,520 | 993 | ||
Accounts payable | 1,731 | 1,709 | ||
Intercompany payable | 0 | 0 | ||
Accrued compensation | 1,860 | 1,712 | ||
Accrued income taxes | 633 | 566 | ||
Other accrued expenses | 2,442 | 2,185 | ||
Current liabilities held for sale | 34 | 0 | ||
Total current liabilities | 14,220 | 7,165 | ||
Long-term debt | 25,921 | 30,109 | ||
Accrued compensation and retirement benefits | 1,641 | 1,759 | ||
Accrued income taxes | 2,405 | 2,903 | ||
Intercompany loans payable | 0 | 0 | ||
Deferred tax liabilities | 2,978 | 3,729 | ||
Other liabilities | 1,515 | 1,916 | ||
Noncurrent liabilities held for sale | 720 | 0 | ||
Total liabilities | 49,400 | 47,581 | ||
Total shareholders’ equity | 50,294 | 52,063 | ||
Noncontrolling interests | 122 | 0 | ||
Total equity | 50,416 | 52,063 | 53,230 | 19,443 |
Total liabilities and equity | 99,816 | 99,644 | ||
Consolidating Adjustments | Medtronic Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | (178) | (200) | ||
Intercompany receivable | (12,681) | (304,049) | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Current assets held for sale | 0 | |||
Total current assets | (12,859) | (304,249) | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | (180,382) | (171,209) | ||
Intercompany loans receivable | (64,050) | (40,227) | ||
Other assets | 0 | 0 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | (257,291) | (515,685) | ||
Current liabilities: | ||||
Current debt obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | (12,681) | (304,049) | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 0 | 0 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | (12,681) | (304,049) | ||
Long-term debt | 0 | 0 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Intercompany loans payable | (64,050) | (40,227) | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | (76,731) | (344,276) | ||
Total shareholders’ equity | (180,560) | |||
Noncontrolling interests | 0 | |||
Total equity | (180,560) | (171,409) | ||
Total liabilities and equity | (257,291) | (515,685) | ||
Consolidating Adjustments | CIFSA Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Intercompany receivable | (135) | (464) | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Current assets held for sale | 0 | |||
Total current assets | (135) | (464) | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | (138,160) | (137,459) | ||
Intercompany loans receivable | (40,621) | (50,442) | ||
Other assets | 0 | 0 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | (178,916) | (188,365) | ||
Current liabilities: | ||||
Current debt obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | (135) | (464) | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 0 | 0 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | (135) | (464) | ||
Long-term debt | 0 | 0 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Intercompany loans payable | (40,621) | (50,442) | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | (40,756) | (50,906) | ||
Total shareholders’ equity | (138,160) | |||
Noncontrolling interests | 0 | |||
Total equity | (138,160) | (137,459) | ||
Total liabilities and equity | (178,916) | (188,365) | ||
Medtronic plc | Medtronic Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 263 | 0 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Intercompany receivable | 63 | 403 | ||
Prepaid expenses and other current assets | 10 | 24 | ||
Current assets held for sale | 0 | |||
Total current assets | 73 | 427 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 55,833 | 52,608 | ||
Intercompany loans receivable | 3,000 | 3,000 | ||
Other assets | 0 | 0 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | 58,906 | 56,035 | ||
Current liabilities: | ||||
Current debt obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 12 | 0 | ||
Accrued compensation | 9 | 32 | ||
Accrued income taxes | 13 | 11 | ||
Other accrued expenses | 0 | 1 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | 34 | 44 | ||
Long-term debt | 0 | 0 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 10 | 10 | ||
Intercompany loans payable | 8,568 | 3,918 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | 8,612 | 3,972 | ||
Total shareholders’ equity | 50,294 | |||
Noncontrolling interests | 0 | |||
Total equity | 50,294 | 52,063 | ||
Total liabilities and equity | 58,906 | 56,035 | ||
Medtronic plc | CIFSA Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 263 | 0 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Intercompany receivable | 63 | 403 | ||
Prepaid expenses and other current assets | 10 | 24 | ||
Current assets held for sale | 0 | |||
Total current assets | 73 | 427 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 55,833 | 52,608 | ||
Intercompany loans receivable | 3,000 | 3,000 | ||
Other assets | 0 | 0 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | 58,906 | 56,035 | ||
Current liabilities: | ||||
Current debt obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 12 | 0 | ||
Accrued compensation | 9 | 32 | ||
Accrued income taxes | 13 | 11 | ||
Other accrued expenses | 0 | 1 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | 34 | 44 | ||
Long-term debt | 0 | 0 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 10 | 10 | ||
Intercompany loans payable | 8,568 | 3,918 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | 8,612 | 3,972 | ||
Total shareholders’ equity | 50,294 | |||
Noncontrolling interests | 0 | |||
Total equity | 50,294 | 52,063 | ||
Total liabilities and equity | 58,906 | 56,035 | ||
Subsidiary Issuer | Medtronic Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 45 | 55 | 1,071 | 264 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 155 | 162 | ||
Intercompany receivable | 0 | 141,368 | ||
Prepaid expenses and other current assets | 227 | 271 | ||
Current assets held for sale | 0 | |||
Total current assets | 427 | 141,856 | ||
Property, plant, and equipment, net | 1,311 | 1,139 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 20 | 31 | ||
Tax assets | 727 | 690 | ||
Investment in subsidiaries | 71,931 | 68,903 | ||
Intercompany loans receivable | 12,162 | 8,884 | ||
Other assets | 434 | 506 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | 87,012 | 222,009 | ||
Current liabilities: | ||||
Current debt obligations | 5,000 | 500 | ||
Accounts payable | 304 | 288 | ||
Intercompany payable | 12,669 | 151,687 | ||
Accrued compensation | 734 | 616 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 352 | 243 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | 19,059 | 153,334 | ||
Long-term debt | 21,782 | 26,646 | ||
Accrued compensation and retirement benefits | 1,120 | 1,258 | ||
Accrued income taxes | 1,658 | 1,422 | ||
Intercompany loans payable | 13,151 | 10,128 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 153 | 202 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | 56,923 | 192,990 | ||
Total shareholders’ equity | 30,089 | |||
Noncontrolling interests | 0 | |||
Total equity | 30,089 | 29,019 | ||
Total liabilities and equity | 87,012 | 222,009 | ||
Subsidiary Issuer | CIFSA Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 33 | 208 | 728 | 0 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Current assets held for sale | 0 | |||
Total current assets | 33 | 208 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 31,033 | 36,476 | ||
Intercompany loans receivable | 2,978 | 8,253 | ||
Other assets | 0 | 0 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | 34,044 | 44,937 | ||
Current liabilities: | ||||
Current debt obligations | 1,176 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 23 | 24 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | 1,199 | 24 | ||
Long-term debt | 2,133 | 3,382 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Intercompany loans payable | 1,369 | 14,689 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | 4,701 | 18,095 | ||
Total shareholders’ equity | 29,343 | |||
Noncontrolling interests | 0 | |||
Total equity | 29,343 | 26,842 | ||
Total liabilities and equity | 34,044 | 44,937 | ||
Subsidiary Guarantors | Medtronic Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 5 | 0 | 170 | 0 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Current assets held for sale | 0 | |||
Total current assets | 5 | 0 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 52,618 | 49,698 | ||
Intercompany loans receivable | 16,114 | 10,203 | ||
Other assets | 0 | 0 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | 68,737 | 59,901 | ||
Current liabilities: | ||||
Current debt obligations | 901 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 4 | 0 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | 905 | 0 | ||
Long-term debt | 1,842 | 0 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Intercompany loans payable | 17,160 | 14,297 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | 19,907 | 14,297 | ||
Total shareholders’ equity | 48,830 | |||
Noncontrolling interests | 0 | |||
Total equity | 48,830 | 45,604 | ||
Total liabilities and equity | 68,737 | 59,901 | ||
Subsidiary Guarantors | CIFSA Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 5 | 0 | 170 | 0 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Intercompany receivable | 60 | 61 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Current assets held for sale | 0 | |||
Total current assets | 65 | 61 | ||
Property, plant, and equipment, net | 0 | 1 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 51,294 | 48,375 | ||
Intercompany loans receivable | 17,383 | 11,465 | ||
Other assets | 0 | 0 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | 68,742 | 59,902 | ||
Current liabilities: | ||||
Current debt obligations | 901 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 8 | 0 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | 909 | 0 | ||
Long-term debt | 1,842 | 0 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Intercompany loans payable | 17,161 | 14,298 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | 19,912 | 14,298 | ||
Total shareholders’ equity | 48,830 | |||
Noncontrolling interests | 0 | |||
Total equity | 48,830 | 45,604 | ||
Total liabilities and equity | 68,742 | 59,902 | ||
Subsidiary Non-guarantors | Medtronic Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 4,917 | 2,821 | 3,339 | 1,139 |
Investments | 8,741 | 9,758 | ||
Accounts receivable, net | 5,591 | 5,562 | ||
Inventories, net | 3,361 | 3,511 | ||
Intercompany receivable | 12,618 | 162,278 | ||
Prepaid expenses and other current assets | 1,628 | 1,636 | ||
Current assets held for sale | 371 | |||
Total current assets | 37,227 | 185,566 | ||
Property, plant, and equipment, net | 3,050 | 3,702 | ||
Goodwill | 38,515 | 41,500 | ||
Other intangible assets, net | 23,387 | 26,868 | ||
Tax assets | 782 | 693 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany loans receivable | 32,774 | 18,140 | ||
Other assets | 798 | 915 | ||
Noncurrent assets held for sale | 5,919 | |||
Total assets | 142,452 | 277,384 | ||
Current liabilities: | ||||
Current debt obligations | 1,619 | 493 | ||
Accounts payable | 1,427 | 1,421 | ||
Intercompany payable | 0 | 152,362 | ||
Accrued compensation | 1,117 | 1,064 | ||
Accrued income taxes | 620 | 555 | ||
Other accrued expenses | 2,086 | 1,941 | ||
Current liabilities held for sale | 34 | |||
Total current liabilities | 6,903 | 157,836 | ||
Long-term debt | 2,297 | 3,463 | ||
Accrued compensation and retirement benefits | 521 | 501 | ||
Accrued income taxes | 737 | 1,471 | ||
Intercompany loans payable | 25,171 | 11,884 | ||
Deferred tax liabilities | 2,978 | 3,729 | ||
Other liabilities | 1,362 | 1,714 | ||
Noncurrent liabilities held for sale | 720 | |||
Total liabilities | 40,689 | 180,598 | ||
Total shareholders’ equity | 101,641 | |||
Noncontrolling interests | 122 | |||
Total equity | 101,763 | 96,786 | ||
Total liabilities and equity | 142,452 | 277,384 | ||
Subsidiary Non-guarantors | CIFSA Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 4,929 | 2,668 | $ 3,682 | $ 1,403 |
Investments | 8,741 | 9,758 | ||
Accounts receivable, net | 5,591 | 5,562 | ||
Inventories, net | 3,338 | 3,473 | ||
Intercompany receivable | 12 | 0 | ||
Prepaid expenses and other current assets | 1,855 | 1,907 | ||
Current assets held for sale | 371 | |||
Total current assets | 24,837 | 23,368 | ||
Property, plant, and equipment, net | 4,361 | 4,840 | ||
Goodwill | 38,515 | 41,500 | ||
Other intangible assets, net | 23,407 | 26,899 | ||
Tax assets | 1,509 | 1,383 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany loans receivable | 17,260 | 27,724 | ||
Other assets | 1,232 | 1,421 | ||
Noncurrent assets held for sale | 5,919 | |||
Total assets | 117,040 | 127,135 | ||
Current liabilities: | ||||
Current debt obligations | 5,443 | 993 | ||
Accounts payable | 1,731 | 1,709 | ||
Intercompany payable | 123 | 464 | ||
Accrued compensation | 1,851 | 1,680 | ||
Accrued income taxes | 620 | 555 | ||
Other accrued expenses | 2,411 | 2,160 | ||
Current liabilities held for sale | 34 | |||
Total current liabilities | 12,213 | 7,561 | ||
Long-term debt | 21,946 | 26,727 | ||
Accrued compensation and retirement benefits | 1,641 | 1,759 | ||
Accrued income taxes | 2,395 | 2,893 | ||
Intercompany loans payable | 13,523 | 17,537 | ||
Deferred tax liabilities | 2,978 | 3,729 | ||
Other liabilities | 1,515 | 1,916 | ||
Noncurrent liabilities held for sale | 720 | |||
Total liabilities | 56,931 | 62,122 | ||
Total shareholders’ equity | 59,987 | |||
Noncontrolling interests | 122 | |||
Total equity | 60,109 | 65,013 | ||
Total liabilities and equity | $ 117,040 | $ 127,135 |
Guarantor Financial Informat103
Guarantor Financial Information , Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Operating Activities: | |||
Net cash provided by operating activities | $ 6,880 | $ 5,218 | $ 4,902 |
Investing Activities: | |||
Acquisitions, net of cash acquired | (1,324) | (1,213) | (14,884) |
Additions to property, plant, and equipment | (1,254) | (1,046) | (571) |
Purchases of investments | (4,371) | (5,406) | (7,582) |
Sales and maturities of investments | 5,356 | 9,924 | 5,890 |
Net (increase) decrease in intercompany loans receivable | 0 | 0 | 0 |
Sale of subsidiaries | 0 | ||
Capital contributions paid | 0 | 0 | 0 |
Other investing activities, net | 22 | (14) | 89 |
Net cash (used in) provided by investing activities | (1,571) | 2,245 | (17,058) |
Financing Activities: | |||
Acquisition-related contingent consideration | (69) | (22) | (85) |
Change in current debt obligations, net | 906 | 7 | (1) |
Repayment of short-term borrowings (maturities greater than 90 days) | (2) | (139) | (150) |
Proceeds from short-term borrowings (maturities greater than 90 days) | 12 | 139 | 150 |
Issuance of long-term debt | 2,140 | 0 | 19,942 |
Payments on long-term debt | (863) | (5,132) | (1,268) |
Dividends to shareholders | (2,376) | (2,139) | (1,337) |
Issuance of ordinary shares | 428 | 491 | 649 |
Repurchase of ordinary shares | (3,544) | (2,830) | (1,920) |
Net intercompany loan borrowings (repayments) | 0 | 0 | 0 |
Intercompany dividend paid | 0 | 0 | 0 |
Capital contributions received | 0 | 0 | 0 |
Other financing activities | 85 | 82 | (31) |
Net cash (used in) provided by financing activities | (3,283) | (9,543) | 15,949 |
Effect of exchange rate changes on cash and cash equivalents | 65 | 113 | (353) |
Net change in cash and cash equivalents | 2,091 | (1,967) | 3,440 |
Cash and cash equivalents at beginning of period | 2,876 | 4,843 | 1,403 |
Cash and cash equivalents at end of period | 4,967 | 2,876 | 4,843 |
Consolidating Adjustments | Medtronic Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | (887) | (812) | (413) |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | 0 | 0 |
Additions to property, plant, and equipment | 0 | 0 | 0 |
Purchases of investments | 162 | 0 | 0 |
Sales and maturities of investments | (162) | 0 | 0 |
Net (increase) decrease in intercompany loans receivable | 13,813 | 10,492 | 16,943 |
Capital contributions paid | 248 | 9,870 | |
Other investing activities, net | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | 14,061 | 20,362 | 16,943 |
Financing Activities: | |||
Acquisition-related contingent consideration | 0 | 0 | 0 |
Change in current debt obligations, net | 0 | 0 | 0 |
Repayment of short-term borrowings (maturities greater than 90 days) | 0 | 0 | 0 |
Proceeds from short-term borrowings (maturities greater than 90 days) | 0 | 0 | 0 |
Issuance of long-term debt | 0 | 0 | |
Payments on long-term debt | 0 | 0 | 0 |
Dividends to shareholders | 0 | 0 | 0 |
Issuance of ordinary shares | 0 | 0 | 0 |
Repurchase of ordinary shares | 0 | 0 | 0 |
Net intercompany loan borrowings (repayments) | (13,813) | (10,492) | (16,943) |
Intercompany dividend paid | 887 | 812 | 413 |
Capital contributions received | (248) | (9,870) | |
Other financing activities | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | (13,174) | (19,550) | (16,530) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 |
Consolidating Adjustments | CIFSA Senior Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | (1,997) | (4,005) | (1,100) |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | 53 | 0 |
Additions to property, plant, and equipment | 0 | 0 | 0 |
Purchases of investments | 0 | 0 | 0 |
Sales and maturities of investments | 0 | 0 | 0 |
Net (increase) decrease in intercompany loans receivable | (3,320) | 11,659 | 10,656 |
Sale of subsidiaries | (53) | ||
Capital contributions paid | 537 | 5,679 | 937 |
Other investing activities, net | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | (2,783) | 17,338 | 11,593 |
Financing Activities: | |||
Acquisition-related contingent consideration | 0 | 0 | 0 |
Change in current debt obligations, net | 0 | 0 | 0 |
Repayment of short-term borrowings (maturities greater than 90 days) | 0 | 0 | 0 |
Proceeds from short-term borrowings (maturities greater than 90 days) | 0 | 0 | 0 |
Issuance of long-term debt | 0 | 0 | |
Payments on long-term debt | 0 | 0 | 0 |
Dividends to shareholders | 0 | 0 | 0 |
Issuance of ordinary shares | 0 | 0 | 0 |
Repurchase of ordinary shares | 0 | 0 | 0 |
Net intercompany loan borrowings (repayments) | 3,320 | (11,659) | (10,656) |
Intercompany dividend paid | 1,997 | 4,005 | 1,100 |
Capital contributions received | (537) | (5,679) | (937) |
Other financing activities | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | 4,780 | (13,333) | (10,493) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 |
Medtronic plc | Medtronic Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 842 | 297 | 26 |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | 0 | (9,700) |
Additions to property, plant, and equipment | 0 | 0 | 0 |
Purchases of investments | 0 | 0 | 0 |
Sales and maturities of investments | 0 | 0 | 0 |
Net (increase) decrease in intercompany loans receivable | 0 | 0 | 0 |
Capital contributions paid | 0 | 0 | |
Other investing activities, net | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 0 | (9,700) |
Financing Activities: | |||
Acquisition-related contingent consideration | 0 | 0 | 0 |
Change in current debt obligations, net | 0 | 0 | 0 |
Repayment of short-term borrowings (maturities greater than 90 days) | 0 | 0 | 0 |
Proceeds from short-term borrowings (maturities greater than 90 days) | 0 | 0 | 0 |
Issuance of long-term debt | 0 | 0 | |
Payments on long-term debt | 0 | 0 | 0 |
Dividends to shareholders | (2,376) | (2,139) | (435) |
Issuance of ordinary shares | 428 | 491 | 172 |
Repurchase of ordinary shares | (3,544) | (2,830) | (300) |
Net intercompany loan borrowings (repayments) | 4,650 | 3,918 | 10,500 |
Intercompany dividend paid | 0 | 0 | 0 |
Capital contributions received | 0 | 0 | |
Other financing activities | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | (842) | (560) | 9,937 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | 0 | (263) | 263 |
Cash and cash equivalents at beginning of period | 0 | 263 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 263 |
Medtronic plc | CIFSA Senior Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 842 | 297 | 26 |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | 0 | (9,700) |
Additions to property, plant, and equipment | 0 | 0 | 0 |
Purchases of investments | 0 | 0 | 0 |
Sales and maturities of investments | 0 | 0 | 0 |
Net (increase) decrease in intercompany loans receivable | 0 | 0 | 0 |
Sale of subsidiaries | 0 | ||
Capital contributions paid | 0 | 0 | 0 |
Other investing activities, net | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 0 | (9,700) |
Financing Activities: | |||
Acquisition-related contingent consideration | 0 | 0 | 0 |
Change in current debt obligations, net | 0 | 0 | 0 |
Repayment of short-term borrowings (maturities greater than 90 days) | 0 | 0 | 0 |
Proceeds from short-term borrowings (maturities greater than 90 days) | 0 | 0 | 0 |
Issuance of long-term debt | 0 | 0 | |
Payments on long-term debt | 0 | 0 | 0 |
Dividends to shareholders | (2,376) | (2,139) | (435) |
Issuance of ordinary shares | 428 | 491 | 172 |
Repurchase of ordinary shares | (3,544) | (2,830) | (300) |
Net intercompany loan borrowings (repayments) | 4,650 | 3,918 | 10,500 |
Intercompany dividend paid | 0 | 0 | 0 |
Capital contributions received | 0 | 0 | 0 |
Other financing activities | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | (842) | (560) | 9,937 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | 0 | (263) | 263 |
Cash and cash equivalents at beginning of period | 0 | 263 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 263 |
Subsidiary Issuer | Medtronic Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 1,902 | 402 | 1,479 |
Investing Activities: | |||
Acquisitions, net of cash acquired | (940) | (526) | (65) |
Additions to property, plant, and equipment | (369) | (334) | (187) |
Purchases of investments | 0 | 0 | 0 |
Sales and maturities of investments | 210 | 0 | 0 |
Net (increase) decrease in intercompany loans receivable | (3,278) | (2,368) | (16,996) |
Capital contributions paid | (248) | (11) | |
Other investing activities, net | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | (4,625) | (3,239) | (17,248) |
Financing Activities: | |||
Acquisition-related contingent consideration | 0 | 0 | 0 |
Change in current debt obligations, net | 0 | 0 | 0 |
Repayment of short-term borrowings (maturities greater than 90 days) | 0 | 0 | (150) |
Proceeds from short-term borrowings (maturities greater than 90 days) | 0 | 0 | 150 |
Issuance of long-term debt | 150 | 19,942 | |
Payments on long-term debt | (500) | (2,988) | (1,268) |
Dividends to shareholders | 0 | 0 | (902) |
Issuance of ordinary shares | 0 | 0 | 477 |
Repurchase of ordinary shares | 0 | 0 | (1,620) |
Net intercompany loan borrowings (repayments) | 3,023 | (91) | (53) |
Intercompany dividend paid | 0 | 0 | 0 |
Capital contributions received | 0 | 4,900 | |
Other financing activities | 40 | 0 | 0 |
Net cash (used in) provided by financing activities | 2,713 | 1,821 | 16,576 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | (10) | (1,016) | 807 |
Cash and cash equivalents at beginning of period | 55 | 1,071 | 264 |
Cash and cash equivalents at end of period | 45 | 55 | 1,071 |
Subsidiary Issuer | CIFSA Senior Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 1,904 | 4,208 | 1,238 |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | 0 | 440 |
Additions to property, plant, and equipment | 0 | 0 | 0 |
Purchases of investments | 0 | 0 | 0 |
Sales and maturities of investments | 0 | 0 | 0 |
Net (increase) decrease in intercompany loans receivable | 5,275 | (8,193) | (59) |
Sale of subsidiaries | 0 | ||
Capital contributions paid | (537) | (720) | (937) |
Other investing activities, net | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | 4,738 | (8,913) | (556) |
Financing Activities: | |||
Acquisition-related contingent consideration | 0 | 0 | 0 |
Change in current debt obligations, net | 0 | 0 | 0 |
Repayment of short-term borrowings (maturities greater than 90 days) | 0 | 0 | 0 |
Proceeds from short-term borrowings (maturities greater than 90 days) | 0 | 0 | 0 |
Issuance of long-term debt | 0 | 0 | |
Payments on long-term debt | 0 | (2,121) | (51) |
Dividends to shareholders | 0 | 0 | 0 |
Issuance of ordinary shares | 0 | 0 | 0 |
Repurchase of ordinary shares | 0 | 0 | 0 |
Net intercompany loan borrowings (repayments) | (6,817) | 6,306 | 97 |
Intercompany dividend paid | 0 | 0 | 0 |
Capital contributions received | 0 | 0 | 0 |
Other financing activities | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | (6,817) | 4,185 | 46 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | (175) | (520) | 728 |
Cash and cash equivalents at beginning of period | 208 | 728 | 0 |
Cash and cash equivalents at end of period | 33 | 208 | 728 |
Subsidiary Guarantors | Medtronic Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 302 | 696 | 170 |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | 0 | 0 |
Additions to property, plant, and equipment | 0 | 0 | 0 |
Purchases of investments | 0 | 0 | 0 |
Sales and maturities of investments | 0 | 0 | 0 |
Net (increase) decrease in intercompany loans receivable | (5,911) | (203) | 0 |
Capital contributions paid | 0 | (4,959) | |
Other investing activities, net | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | (5,911) | (5,162) | 0 |
Financing Activities: | |||
Acquisition-related contingent consideration | 0 | 0 | 0 |
Change in current debt obligations, net | 901 | 0 | 0 |
Repayment of short-term borrowings (maturities greater than 90 days) | 0 | (139) | 0 |
Proceeds from short-term borrowings (maturities greater than 90 days) | 0 | 139 | 0 |
Issuance of long-term debt | 1,850 | 0 | |
Payments on long-term debt | 0 | 0 | 0 |
Dividends to shareholders | 0 | 0 | 0 |
Issuance of ordinary shares | 0 | 0 | 0 |
Repurchase of ordinary shares | 0 | 0 | 0 |
Net intercompany loan borrowings (repayments) | 2,863 | 4,296 | 0 |
Intercompany dividend paid | 0 | 0 | 0 |
Capital contributions received | 0 | 0 | |
Other financing activities | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | 5,614 | 4,296 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | 5 | (170) | 170 |
Cash and cash equivalents at beginning of period | 0 | 170 | 0 |
Cash and cash equivalents at end of period | 5 | 0 | 170 |
Subsidiary Guarantors | CIFSA Senior Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 302 | 604 | 142 |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | 0 | 0 |
Additions to property, plant, and equipment | 0 | 0 | (1) |
Purchases of investments | 0 | 0 | 0 |
Sales and maturities of investments | 0 | 0 | 0 |
Net (increase) decrease in intercompany loans receivable | (5,911) | (164) | 29 |
Sale of subsidiaries | 53 | ||
Capital contributions paid | 0 | (4,959) | 0 |
Other investing activities, net | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | (5,911) | (5,070) | 28 |
Financing Activities: | |||
Acquisition-related contingent consideration | 0 | 0 | 0 |
Change in current debt obligations, net | 901 | 0 | 0 |
Repayment of short-term borrowings (maturities greater than 90 days) | 0 | (139) | (150) |
Proceeds from short-term borrowings (maturities greater than 90 days) | 0 | 139 | 150 |
Issuance of long-term debt | 1,850 | 0 | |
Payments on long-term debt | 0 | 0 | 0 |
Dividends to shareholders | 0 | 0 | 0 |
Issuance of ordinary shares | 0 | 0 | 0 |
Repurchase of ordinary shares | 0 | 0 | 0 |
Net intercompany loan borrowings (repayments) | 2,863 | 4,296 | 0 |
Intercompany dividend paid | 0 | 0 | 0 |
Capital contributions received | 0 | 0 | 0 |
Other financing activities | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | 5,614 | 4,296 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | 5 | (170) | 170 |
Cash and cash equivalents at beginning of period | 0 | 170 | 0 |
Cash and cash equivalents at end of period | 5 | 0 | 170 |
Subsidiary Non-guarantors | Medtronic Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 4,721 | 4,635 | 3,640 |
Investing Activities: | |||
Acquisitions, net of cash acquired | (384) | (687) | (5,119) |
Additions to property, plant, and equipment | (885) | (712) | (384) |
Purchases of investments | (4,533) | (5,406) | (7,582) |
Sales and maturities of investments | 5,308 | 9,924 | 5,890 |
Net (increase) decrease in intercompany loans receivable | (4,624) | (7,921) | 53 |
Capital contributions paid | 0 | (4,900) | |
Other investing activities, net | 22 | (14) | 89 |
Net cash (used in) provided by investing activities | (5,096) | (9,716) | (7,053) |
Financing Activities: | |||
Acquisition-related contingent consideration | (69) | (22) | (85) |
Change in current debt obligations, net | 5 | 7 | (1) |
Repayment of short-term borrowings (maturities greater than 90 days) | (2) | 0 | 0 |
Proceeds from short-term borrowings (maturities greater than 90 days) | 12 | 0 | 0 |
Issuance of long-term debt | 140 | 0 | |
Payments on long-term debt | (363) | (2,144) | 0 |
Dividends to shareholders | 0 | 0 | 0 |
Issuance of ordinary shares | 0 | 0 | 0 |
Repurchase of ordinary shares | 0 | 0 | 0 |
Net intercompany loan borrowings (repayments) | 3,277 | 2,369 | 6,496 |
Intercompany dividend paid | (887) | (812) | (413) |
Capital contributions received | 248 | 4,970 | |
Other financing activities | 45 | 82 | (31) |
Net cash (used in) provided by financing activities | 2,406 | 4,450 | 5,966 |
Effect of exchange rate changes on cash and cash equivalents | 65 | 113 | (353) |
Net change in cash and cash equivalents | 2,096 | (518) | 2,200 |
Cash and cash equivalents at beginning of period | 2,821 | 3,339 | 1,139 |
Cash and cash equivalents at end of period | 4,917 | 2,821 | 3,339 |
Subsidiary Non-guarantors | CIFSA Senior Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 5,829 | 4,114 | 4,596 |
Investing Activities: | |||
Acquisitions, net of cash acquired | (1,324) | (1,266) | (5,624) |
Additions to property, plant, and equipment | (1,254) | (1,046) | (570) |
Purchases of investments | (4,371) | (5,406) | (7,582) |
Sales and maturities of investments | 5,356 | 9,924 | 5,890 |
Net (increase) decrease in intercompany loans receivable | 3,956 | (3,302) | (10,626) |
Sale of subsidiaries | 0 | ||
Capital contributions paid | 0 | 0 | 0 |
Other investing activities, net | 22 | (14) | 89 |
Net cash (used in) provided by investing activities | 2,385 | (1,110) | (18,423) |
Financing Activities: | |||
Acquisition-related contingent consideration | (69) | (22) | (85) |
Change in current debt obligations, net | 5 | 7 | (1) |
Repayment of short-term borrowings (maturities greater than 90 days) | (2) | 0 | 0 |
Proceeds from short-term borrowings (maturities greater than 90 days) | 12 | 0 | 0 |
Issuance of long-term debt | 290 | 19,942 | |
Payments on long-term debt | (863) | (3,011) | (1,217) |
Dividends to shareholders | 0 | 0 | (902) |
Issuance of ordinary shares | 0 | 0 | 477 |
Repurchase of ordinary shares | 0 | 0 | (1,620) |
Net intercompany loan borrowings (repayments) | (4,016) | (2,861) | 59 |
Intercompany dividend paid | (1,997) | (4,005) | (1,100) |
Capital contributions received | 537 | 5,679 | 937 |
Other financing activities | 85 | 82 | (31) |
Net cash (used in) provided by financing activities | (6,018) | (4,131) | 16,459 |
Effect of exchange rate changes on cash and cash equivalents | 65 | 113 | (353) |
Net change in cash and cash equivalents | 2,261 | (1,014) | 2,279 |
Cash and cash equivalents at beginning of period | 2,668 | 3,682 | 1,403 |
Cash and cash equivalents at end of period | $ 4,929 | $ 2,668 | $ 3,682 |
Schedule II (Details)
Schedule II (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Fiscal Year | $ 161 | $ 144 | $ 115 |
Charges to Income | 39 | 49 | 35 |
Charges to Other Accounts | 0 | 0 | 34 |
Uncollectible accounts written off, less recoveries | (46) | (28) | (36) |
Effects of currency fluctuations | 1 | (4) | (4) |
Balance at End of Fiscal Year | 155 | 161 | 144 |
Deferred Tax Valuation Allowance [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Fiscal Year | 7,032 | 5,607 | 397 |
Charges to Income | 101 | 1,194 | 40 |
Charges to Other Accounts | 6 | 4 | 5,660 |
Uncollectible accounts written off, less recoveries | (524) | (88) | (56) |
Effects of currency fluctuations | (304) | 315 | (434) |
Balance at End of Fiscal Year | $ 6,311 | $ 7,032 | $ 5,607 |