Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Apr. 27, 2018 | Jun. 20, 2018 | Oct. 27, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Medtronic plc | ||
Entity Central Index Key | 1,613,103 | ||
Document Period End Date | Apr. 27, 2018 | ||
Current Fiscal Year End Date | --04-27 | ||
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 | $ 110 | ||
Entity Ordinary Shares Outstanding | 1,351,709,097 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 29,953,000,000 | $ 29,710,000,000 | $ 28,833,000,000 |
Costs and expenses: | |||
Cost of products sold | 9,055,000,000 | 9,291,000,000 | 9,142,000,000 |
Research and development expense | 2,253,000,000 | 2,193,000,000 | 2,224,000,000 |
Selling, general, and administrative expense | 9,974,000,000 | 9,711,000,000 | 9,469,000,000 |
Amortization of intangible assets | 1,823,000,000 | 1,980,000,000 | 1,931,000,000 |
Restructuring charges, net | 30,000,000 | 363,000,000 | 290,000,000 |
Acquisition-related items | 104,000,000 | 220,000,000 | 283,000,000 |
Certain litigation charges | 61,000,000 | 300,000,000 | 26,000,000 |
Divestiture-related items | 114,000,000 | 0 | 0 |
Gain on sale of businesses | (697,000,000) | 0 | 0 |
Special charge | 80,000,000 | 100,000,000 | 0 |
Other expense, net | 505,000,000 | 222,000,000 | 107,000,000 |
Operating profit | 6,651,000,000 | 5,330,000,000 | 5,361,000,000 |
Investment loss | 227,000,000 | 0 | 70,000,000 |
Interest income | (397,000,000) | (366,000,000) | (431,000,000) |
Interest expense | 1,146,000,000 | 1,094,000,000 | 1,386,000,000 |
Interest expense, net | 749,000,000 | 728,000,000 | 955,000,000 |
Income before income taxes | 5,675,000,000 | 4,602,000,000 | 4,336,000,000 |
Income tax provision | 2,580,000,000 | 578,000,000 | 798,000,000 |
Net income | 3,095,000,000 | 4,024,000,000 | 3,538,000,000 |
Net loss attributable to noncontrolling interests | 9,000,000 | 4,000,000 | 0 |
Net income attributable to Medtronic | $ 3,104,000,000 | $ 4,028,000,000 | $ 3,538,000,000 |
Basic earnings per share (in dollars per share) | $ 2.29 | $ 2.92 | $ 2.51 |
Diluted earnings per share (in dollars per share) | $ 2.27 | $ 2.89 | $ 2.48 |
Basic weighted average shares outstanding (in shares) | 1,356.7 | 1,378.9 | 1,409.6 |
Diluted weighted average shares outstanding (in shares) | 1,368.2 | 1,391.4 | 1,425.9 |
Cash dividends declared per ordinary share (in dollars per share) | $ 1.84 | $ 1.72 | $ 1.52 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 3,095 | $ 4,024 | $ 3,538 |
Other comprehensive gain (loss), net of tax: | |||
Unrealized (loss) gain on available-for-sale securities | (103) | 38 | (121) |
Translation adjustment | 1,184 | (977) | (197) |
Net change in retirement obligations | 167 | 68 | (66) |
Unrealized (loss) gain on derivatives | (218) | 127 | (300) |
Other comprehensive gain (loss) | 1,030 | (744) | (684) |
Comprehensive income including noncontrolling interests | 4,125 | 3,280 | 2,854 |
Comprehensive loss attributable to noncontrolling interests | 9 | 3 | 0 |
Comprehensive income attributable to Medtronic | $ 4,134 | $ 3,283 | $ 2,854 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 27, 2018 | Apr. 28, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 3,669 | $ 4,967 |
Investments | 7,558 | 8,741 |
Accounts receivable, less allowances of $193 and $155, respectively | 5,987 | 5,591 |
Inventories, net | 3,579 | 3,338 |
Other current assets | 2,187 | 1,865 |
Current assets held for sale | 0 | 371 |
Total current assets | 22,980 | 24,873 |
Property, plant, and equipment, net | 4,604 | 4,361 |
Goodwill | 39,543 | 38,515 |
Other intangible assets, net | 21,723 | 23,407 |
Tax assets | 1,465 | 1,550 |
Other assets | 1,078 | 1,232 |
Noncurrent assets held for sale | 0 | 5,919 |
Total assets | 91,393 | 99,857 |
Current liabilities: | ||
Current debt obligations | 2,058 | 7,520 |
Accounts payable | 1,628 | 1,555 |
Accrued compensation | 1,988 | 1,904 |
Accrued income taxes | 979 | 633 |
Other accrued expenses | 3,431 | 2,618 |
Current liabilities held for sale | 0 | 34 |
Total current liabilities | 10,084 | 14,264 |
Long-term debt | 23,699 | 25,921 |
Accrued compensation and retirement benefits | 1,425 | 1,724 |
Accrued income taxes | 3,051 | 2,405 |
Deferred tax liabilities | 1,423 | 2,978 |
Other liabilities | 889 | 1,515 |
Noncurrent liabilities held for sale | 0 | 720 |
Total liabilities | 40,571 | 49,527 |
Commitments and contingencies (Notes 2, 17, and 19) | ||
Shareholders’ equity: | ||
Ordinary shares— par value $0.0001, 2.6 billion shares authorized, 1,354,218,154 and 1,369,424,818 shares issued and outstanding, respectively | 0 | 0 |
Additional paid-in capital | 28,127 | 29,551 |
Retained earnings | 24,379 | 23,270 |
Accumulated other comprehensive loss | (1,786) | (2,613) |
Total shareholders’ equity | 50,720 | 50,208 |
Noncontrolling interests | 102 | 122 |
Total equity | 50,822 | 50,330 |
Total liabilities and equity | $ 91,393 | $ 99,857 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Apr. 27, 2018 | Apr. 28, 2017 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 193 | $ 155 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 2,600,000,000 | 2,600,000,000 |
Common stock, issued (in shares) | 1,354,218,154 | 1,369,424,818 |
Common stock, outstanding (in shares) | 1,354,218,154 | 1,369,424,818 |
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 | |
Beginning balance (in shares) at Apr. 24, 2015 | 1,422,000,000 | |||||||
Beginning balance at Apr. 24, 2015 | $ 53,144 | $ 53,144 | $ 0 | $ 34,109 | $ 20,219 | $ (1,184) | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 3,538 | 3,538 | 3,538 | |||||
Other comprehensive (loss) income | (684) | (684) | (684) | |||||
Dividends to shareholders | (2,139) | (2,139) | (2,139) | |||||
Issuance of shares under stock purchase and award plans (in shares) | 15,000,000 | |||||||
Issuance of shares under stock purchase and award plans | 491 | 491 | 491 | |||||
Repurchase of ordinary shares (in 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 | |||||
Ending balance (in shares) at Apr. 29, 2016 | 1,399,000,000 | |||||||
Ending balance at Apr. 29, 2016 | 51,977 | 51,977 | $ 0 | 32,227 | 21,618 | (1,868) | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 4,024 | 4,028 | 4,028 | (4) | ||||
Other comprehensive (loss) income | (744) | (745) | (745) | 1 | ||||
Dividends to shareholders | (2,376) | (2,376) | (2,376) | |||||
Issuance of shares under stock purchase and award plans (in shares) | 13,000,000 | |||||||
Issuance of shares under stock purchase and award plans | 428 | 428 | 428 | |||||
Repurchase of ordinary shares (in 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 | |||||
Changes to noncontrolling ownership interests | $ 125 | 125 | ||||||
Ending balance (in shares) at Apr. 28, 2017 | 1,369,424,818 | 1,369,000,000 | ||||||
Ending balance at Apr. 28, 2017 | $ 50,330 | 50,208 | $ 0 | 29,551 | 23,270 | (2,613) | 122 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of change in accounting principle | [1] | 296 | 296 | 499 | (203) | |||
Net income (loss) | 3,095 | 3,104 | 3,104 | (9) | ||||
Other comprehensive (loss) income | 1,030 | 1,030 | 1,030 | |||||
Dividends to shareholders | (2,494) | (2,494) | (2,494) | |||||
Issuance of shares under stock purchase and award plans (in shares) | 10,000,000 | |||||||
Issuance of shares under stock purchase and award plans | 329 | 329 | 329 | |||||
Repurchase of ordinary shares (in shares) | (25,000,000) | |||||||
Repurchase of ordinary shares | (2,097) | (2,097) | (2,097) | |||||
Stock-based compensation | 344 | 344 | 344 | |||||
Changes to noncontrolling ownership interests | $ (11) | (11) | ||||||
Ending balance (in shares) at Apr. 27, 2018 | 1,354,218,154 | 1,354,000,000 | ||||||
Ending balance at Apr. 27, 2018 | $ 50,822 | $ 50,720 | $ 0 | $ 28,127 | $ 24,379 | $ (1,786) | $ 102 | |
[1] | See Note 1 to the consolidated financial statements for discussion regarding the adoption of accounting standards during fiscal year 2018. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Operating Activities: | |||
Net income | $ 3,095 | $ 4,024 | $ 3,538 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 2,644 | 2,917 | 2,820 |
Amortization of debt premium, discount, and issuance costs | (13) | 11 | 29 |
Acquisition-related items | (31) | (46) | 218 |
Provision for doubtful accounts | 52 | 39 | 49 |
Deferred income taxes | (919) | (459) | (460) |
Stock-based compensation | 344 | 348 | 375 |
Loss on debt extinguishment | 38 | 0 | 163 |
Gain on sale of businesses | (697) | 0 | 0 |
Investment loss | 227 | 0 | 70 |
Other, net | 117 | (93) | (181) |
Change in operating assets and liabilities, net of acquisitions and divestitures: | |||
Accounts receivable, net | (275) | (75) | (435) |
Inventories, net | (192) | (227) | (186) |
Accounts payable and accrued liabilities | 65 | 356 | (379) |
Other operating assets and liabilities | 229 | 85 | (403) |
Net cash provided by operating activities | 4,684 | 6,880 | 5,218 |
Investing Activities: | |||
Acquisitions, net of cash acquired | (137) | (1,324) | (1,213) |
Proceeds from sale of businesses | 6,058 | 0 | 0 |
Additions to property, plant, and equipment | (1,068) | (1,254) | (1,046) |
Purchases of investments | (3,200) | (4,371) | (5,406) |
Sales and maturities of investments | 4,227 | 5,356 | 9,924 |
Other investing activities, net | (22) | 22 | (14) |
Net cash provided by (used in) investing activities | 5,858 | (1,571) | 2,245 |
Financing Activities: | |||
Acquisition-related contingent consideration | (48) | (69) | (22) |
Change in current debt obligations, net | (249) | 906 | 7 |
Repayment of short-term borrowings (maturities greater than 90 days) | (45) | (2) | (139) |
Proceeds from short-term borrowings (maturities greater than 90 days) | 1 | 12 | 139 |
Issuance of long-term debt | 21 | 2,140 | 0 |
Payments on long-term debt | (7,370) | (863) | (5,132) |
Dividends to shareholders | (2,494) | (2,376) | (2,139) |
Issuance of ordinary shares | 403 | 428 | 491 |
Repurchase of ordinary shares | (2,171) | (3,544) | (2,830) |
Other financing activities | (2) | 85 | 82 |
Net cash used in financing activities | (11,954) | (3,283) | (9,543) |
Effect of exchange rate changes on cash and cash equivalents | 114 | 65 | 113 |
Net change in cash and cash equivalents | (1,298) | 2,091 | (1,967) |
Cash and cash equivalents at beginning of period | 4,967 | 2,876 | 4,843 |
Cash and cash equivalents at end of period | 3,669 | 4,967 | 2,876 |
Cash paid for: | |||
Income taxes | 2,542 | 1,029 | 1,379 |
Interest | $ 1,147 | $ 1,134 | $ 1,266 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 27, 2018 | |
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. Certain consolidated balance sheet amounts related to prior periods have been revised to correct the Company’s application of Accounting Standards Codification (ASC) 605, Revenue Recognition, with respect to its accrual for the costs of post-implant support services which are inconsequential deliverables within the arrangements. In accordance with Securities and Exchange Commission Staff Accounting Bulletin (SAB) No. 99, Materiality, and ASC 250, Presentation of Financial Statements, the Company assessed the materiality of this correction and concluded that the accrual for the costs of post-implant support services was not material to prior periods, and therefore, amendments of previously filed reports are not required. As such, in accordance with ASC 250, the Company revised the previously reported consolidated balance sheets and consolidated statements of equity. The correction had no impact on the previously reported consolidated statements of income, consolidated statements of comprehensive income, or consolidated statements of cash flows for the periods presented, as this error originates in periods prior to those presented. The table below presents the impact of the revision on the Company's previously reported consolidated balance sheets, consolidated statements of equity, and related amounts disclosed in Notes 14, 21, and 22 as follows: April 28, 2017 (in millions) As Reported Adjustments As Revised Tax assets $ 1,509 $ 41 $ 1,550 Total assets 99,816 41 99,857 Accrued compensation 1,860 44 1,904 Current liabilities 14,220 44 14,264 Accrued compensation and retirement benefits 1,641 83 1,724 Total liabilities 49,400 127 49,527 Retained earnings 23,356 (86 ) 23,270 Total shareholders' equity 50,294 (86 ) 50,208 Total equity 50,416 (86 ) 50,330 Total liabilities and equity 99,816 41 99,857 As this error originates in periods prior to those presented, previously reported amounts at April 24, 2015 and April 29, 2016 of retained earnings ( $20,305 million and $21,704 million , respectively), total shareholders' equity ( $53,230 million and $52,063 million , respectively) and total equity ( $53,230 million and $52,063 million , respectively), have been reduced by $86 million to reflect the correction above within the consolidated statements of equity. Use of Estimates The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States (U.S.) (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, 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 27, 2018 and April 28, 2017 and for each of the three fiscal years ended April 27, 2018 (fiscal year 2018 ), April 28, 2017 (fiscal year 2017 ), and April 29, 2016 (fiscal year 2016 ). Fiscal years 2018 and 2017 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 the availability for use in current operations consistent with the Company's management of its capital structure and liquidity. Certain of the Company’s investments in equity and other securities are long-term, strategic investments in companies that are in various 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. Certain of these investments are publicly traded companies and are 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 statement 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. Securities accounted for under 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 a discussion of the gains and losses recognized on equity and other securities. Accounts Receivable and Allowance for Doubtful Accounts The Company grants credit to customers in the normal course of business and maintains an allowance for doubtful accounts for potential credit losses. When evaluating allowances for doubtful accounts, the Company considers various factors, including historical experience and customer-specific information. Uncollectible accounts are written-off against the allowance when it is deemed that a customer account is uncollectible. Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. The Company reduces the carrying value of inventories for 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 goodwill for impairment annually in the third quarter of the fiscal year and whenever an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is performed at a reporting unit level. There were no changes in reporting units during fiscal year 2018. 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. 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. 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 . Amortization is recognized within amortization of intangible assets in the consolidated statements of income. 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. 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. Indefinite-lived intangible assets are tested for impairment annually in the third quarter of the fiscal year 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 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. The Company records 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 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. The discount rate used is determined at the time of measurement in accordance with accepted valuation methodologies. Changes in projected revenues, probabilities of payment, discount rates, and projected payment dates may result in adjustments to the fair value measurements. Contingent consideration is remeasured each reporting period using Level 3 inputs, and the change in fair value, including accretion for the passage of time, is recognized as income or expense within acquisition-related items in the consolidated statements of income. Contingent consideration payments made soon after the acquisition date are classified as investing activities in the consolidated statements of cash flows. Contingent consideration payments not made soon after the acquisition date that are related to the acquisition date fair value are reported as financing activities in the consolidated statements of cash flows, and amounts paid in excess of the original acquisition date fair value are reported as operating activities in the consolidated statements of cash flows. 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 derivative financial instruments on a gross basis in the consolidated financial statements. For 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 or a cash flow hedge. 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 and total return 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. 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. Self-Insurance The Company self-insures 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 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. 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 16 for assumptions used in determining pension and post-retirement benefit costs. The Company utilizes a full yield curve approach methodology 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. The full yield curve approach applies specific spot rates along the yield curve to their underlying projected cash flows in estimation of the cost components. Revenue Recognition The Company sells its products through direct sales representatives and independent distributors. Additionally, a portion of the Company’s revenue is generated from consignment inventory maintained at hospitals or with field representatives. The Company recognizes revenue when control is transferred to a customer. For products sold through direct sales representatives and independent distributors, control is transferred upon shipment or upon delivery, based on the contract terms and legal requirements. For consignment inventory, revenue is recognized at the time the product has been used or implanted. The amount of revenue recognized reflects estimated sales rebates and returns, which 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 increases or decrease of revenue 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 incurred to physically move product from the Company's premises to the customer's premises are recognized in selling, general, and administrative expense in the consolidated statements of income and were $363 million , $370 million , and $316 million in fiscal years 2018 , 2017 , and 2016 , respectively. Other shipping and handling costs incurred to store, move, and prepare products for shipment are recognized in cost of products sold in the consolidated statements of income. Research and Development Research and development costs are expensed when incurred. Research and development costs include costs of other research, engineering, and technical activities 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 as a result of the different treatment of transactions for 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 recognized 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 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, intangible asset impairments, currency transaction and derivative gains and losses, Puerto Rico excise tax, and other income not central to the Company's operations. 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 expected to vest. The Company estimates pre-vesting forfeitures at the time of grant and revises the estimates in subsequent periods. New Accounting Standards Recently Adopted In March 2016, the Financial Accounting Standards Board (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. Cash flows related to excess tax benefits are to be classified in operating activities in the statement of cash flows rather than financing. 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. The standard also allows an entity to withhold up to the maximum statutory tax rate and classify the awards as equity. The Company prospectively adopted this guidance in the first quarter of fiscal year 2018. The Company has elected to continue to estimate forfeitures. In October 2016, the FASB issued guidance that requires the tax effect of intra-entity transactions, other than sales of inventory, to be recognized when the transaction occurs. Previously, U.S. GAAP prohibited the recognition of current and deferred income taxes associated with an intra-entity asset transfer until an asset had been sold to a third-party. This update requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset, such as equipment or intangibles, when the transfer occurs. The adoption of this guidance is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company has early-adopted this guidance, as permitted, in the first quarter of fiscal year 2018. As a result of this adoption, the Company increased its beginning retained earnings by $296 million . In February 2018, the FASB issued accounting guidance which allows for reclassification from accumulated other comprehensive income (AOCI) to retained earnings for stranded tax effects resulting from the enactment of comprehensive U.S. tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the Tax Act), and can be applied either in the period of adoption or retrospectively to all applicable periods. The Company early-adopted this guidance in the fourth quarter of fiscal year 2018 and reclassified the stranded income tax effects of the Tax Act, increasing the accumulated other comprehensive loss by $203 million with a corresponding increase to retained earnings. The reclassification was primarily comprised of amounts relating to retirement benefit plans and available-for-sale securities. In accordance with its accounting policy, the Company releases other disproportionate income tax effects from accumulated other comprehensive loss once the reason the tax effects were established ceases to exist. In March 2018, the FASB issued accounting guidance which incorporates Securities and Exchange Commission Staff Accounting Bulletin No. 118 into U.S. GAAP, allowing a measurement period, not to exceed one year, to finalize the accounting for the income tax impacts of the Tax Act. This guidance is effective immediately and requires adjustments to provisional amounts that were previously recorded as new information becomes available. The Company has adopted this standard and will continue to evaluate indicators that may give rise to a change in the tax provision as a result of the Tax Act. 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). The Company will adopt this guidance under the modified retrospective method. The Company does not expect the adoption of the amended guidance to have a material impact on the Company's consolidated financial statements. The Company will make additional revenue related disclosures in the footnotes to the Company’s consolidated financial statements upon adoption in the first quarter of fiscal year 2019. 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 effective for the Company beginning in the first quarter of fiscal year 2019. The Company expects a reclassification of approximately $83 million , net of taxes, from accumulated other comprehensive loss to the opening balance of retained earnings upon adoption in the first quarter of fiscal year 2019. 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 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 balanc |
Acquisitions and Acquisition-Re
Acquisitions and Acquisition-Related Items | 12 Months Ended |
Apr. 27, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Acquisition-Related Items | Acquisitions and Acquisition-Related Items The Company accounts for acquisitions of businesses using the acquisition method of accounting. The assets and liabilities of businesses acquired are 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 the business. The pro forma impact of acquisitions during fiscal year 2018 was not significant, either individually or in the aggregate, to the results of the Company. 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. 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 an 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 $481 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, and the remaining $42 million of debt acquired was repaid in December 2017. During the measurement period, which ended on August 22, 2017, adjustments were made to finalize the allocation of purchase price related to other assets, goodwill, and contingent liabilities. The acquisition date fair values of the assets acquired and liabilities acquired were as follows: (in millions) HeartWare International, Inc. All Other Other current assets $ 351 $ 3 Property, plant, and equipment 14 6 Other intangible assets 625 95 Goodwill 481 52 Other assets 84 — Total assets acquired 1,555 156 Current liabilities 143 2 Deferred tax liabilities 6 2 Long-term debt 245 — Other liabilities 89 — Total liabilities assumed 483 4 Net assets acquired $ 1,072 $ 152 For additional information on acquisitions in fiscal year 2017, see Note 2 to the consolidated financial statements included in the Company's Annual report on Form 10-K for the fiscal year ended April 28, 2017 . Acquisition-Related Items Acquisition-related items includes expenses incurred in connection with the integration of Covidien, the Company's $50.0 billion acquisition completed in the fourth quarter of fiscal year 2015, transaction expenses incurred in connection with business acquisitions, and changes in the fair value of contingent consideration. During fiscal year 2018 , the Company recognized acquisition-related items expense of $132 million , including $28 million recognized within cost of products sold , in the consolidated statements of income. During fiscal year 2018 , acquisition-related items expense includes $172 million of costs associated with the integration of Covidien manufacturing, distribution, and administrative facilities, as well as information technology system implementation and benefits harmonization, partially offset by changes in fair value of contingent consideration as a result of revised revenue forecasts and the timing of anticipated regulatory milestones. 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. During fiscal year 2017 , acquisition-related items expense includes $225 million of costs associated with the integration of Covidien manufacturing, distribution, and administrative facilities, as well as information technology system implementation and benefits harmonization, $23 million of accelerated or incremental stock compensation expense, and expenses incurred in connection with the HeartWare acquisition and planned divestiture of the Patient Care, Deep Vein, Thrombosis, and Nutritional Insufficiency businesses, partially offset by changes 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 , including $219 million of costs associated with the integration of Covidien manufacturing, distribution, and administrative facilities, as well as information technology system implementation and benefits harmonization, and $58 million of accelerated or incremental stock compensation expense. Contingent Consideration The fair value of contingent consideration at April 27, 2018 and April 28, 2017 was $173 million and $246 million , respectively. At April 27, 2018 , $65 million was reflected in other liabilities and $108 million was reflected in other accrued expenses in the consolidated balance sheets. 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. The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Fiscal Year (in millions) 2018 2017 Beginning Balance $ 246 $ 377 Purchase price contingent consideration 28 28 Contingent consideration payments (72 ) (76 ) Change in fair value of contingent consideration (29 ) (83 ) Ending Balance $ 173 $ 246 The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs: (in millions) Fair Value at April 27, 2018 Valuation Technique Unobservable Input Range Discount rate 11.5% - 32.5% Revenue-based payments $ 90 Discounted cash flow Probability of payment 30% - 100% Projected fiscal year of payment 2019 - 2026 Discount rate 5.5% Product development-based payments $ 83 Discounted cash flow Probability of payment 75% - 100% Projected fiscal year of payment 2019 - 2026 |
Divestiture and Divestiture-Rel
Divestiture and Divestiture-Related Items | 12 Months Ended |
Apr. 27, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture and Divestiture-Related Items | Divestiture and Divestiture-Related Items Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency Businesses 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 to Cardinal Health, Inc. (Cardinal). The divestiture was completed on July 29, 2017. As a result of the transaction, the Company received proceeds of $6.1 billion , which was recorded in proceeds from sale of businesses in the consolidated statements of cash flows and recognized a before-tax gain of $697 million , which was recognized within gain on sale of businesses in the consolidated statements of income. Among the product lines included in the divestiture were the dental and animal health, chart paper, wound care, incontinence, electrodes, SharpSafety, thermometry, perinatal protection, blood collection, compression, and enteral feeding offerings. The divestiture also included 17 dedicated manufacturing sites. In connection with the transaction, the Company entered into Transition Service Agreements (TSAs) and Transition Manufacturing Agreements (TMAs) with Cardinal designed to ensure and facilitate an orderly transfer of business operations. The TSAs are primarily related to administrative services and continue for 12 months from the divestiture date, with some TSAs extendable beyond the original 12 month period per the original agreement. Certain of the TSAs have been extended beyond the initial 12 month period in accordance with the provisions of the original agreement. Under the TMAs, both the Company and Cardinal will manufacture and supply certain products to each other for a transition period of up to 5 years. The divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses did not meet the criteria to be classified as discontinued operations, and as such, the results of operations of these businesses were included within net income through the date of the divestiture. The Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses met the criteria to be classified as held for sale in the fourth quarter of fiscal year 2017, at which time the Company ceased depreciation and amortization of property, plant, and equipment and intangible assets classified as held for sale. The following table presents information related to the assets and liabilities that were classified as held for sale in the consolidated balance sheets: (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 Divestiture-Related Items Divestiture-related items include expenses incurred in connection with the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses. During fiscal year 2018 , the Company recognized divestiture-related items expense of $114 million , primarily comprised of expenses incurred for professional services, including banker, legal, tax, and advisory fees, and $16 million of accelerated stock compensation expense related to the acceleration of the vesting period for employees that transferred with the divestiture. There was no divestiture-related items expense for fiscal years 2017 or 2016 . |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Apr. 27, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Enterprise Excellence In the third quarter of fiscal year 2018, the Company announced its Enterprise Excellence restructuring program, which is expected to leverage the Company's global size and scale, as well as enhance the customer and employee experience, with a focus on three objectives: global operations, functional optimization, and commercial optimization. Primary activities of the restructuring program include integrating and enhancing global manufacturing and supply processes, systems and site presence, enhancing and leveraging global operating models across several enabling functions, and optimizing certain commercial processes, systems, and models. The Company estimates that, in connection with its Enterprise Excellence restructuring program, it will recognize pre-tax exit and disposal costs and other costs associated with the restructuring program across all segments of approximately $1.6 billion to $1.8 billion , the majority of which are expected to be incurred by the end of fiscal year 2022. Approximately half of the estimated charges are related to employee termination benefits. The remaining restructuring charges are costs associated with the restructuring program, such as salaries for employees supporting the program and consulting expenses. These charges are recognized within restructuring charges, net, cost of products sold, and selling, general, and administrative expense in the consolidated statements of income. During fiscal year 2018, the Company recognized $96 million in charges. The following table summarizes the activity related to the Enterprise Excellence restructuring program for fiscal year 2018 : (in millions) Employee Termination Benefits Associated Costs (1) Total April 28, 2017 $ — $ — $ — Charges 35 61 96 Cash payments (8 ) (59 ) (67 ) April 27, 2018 $ 27 $ 2 $ 29 (1) Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses. For fiscal year 2018, $28 million was recognized within cost of products sold and $33 million was recognized within selling, general, and administrative expense in the consolidated statements of income. Cost Synergies The cost synergies program related to administrative office optimization, manufacturing and supply chain infrastructure, and certain general and administrative savings was achieved as part of the Covidien integration and completed in the third quarter of fiscal year 2018. Restructuring charges incurred throughout the life of the initiative affecting all segments were primarily related to employee termination costs and costs related to manufacturing and facility closures. A summary of the restructuring accrual and related activity is presented below: (in millions) Employee Termination Benefits 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 ) Accrual adjustments (18 ) — — (18 ) April 29, 2016 $ 213 $ — $ 37 $ 250 Charges 287 27 54 368 Cash payments (179 ) — (53 ) (232 ) Settled non-cash — (27 ) $ — (27 ) Accrual adjustments (60 ) — (8 ) (68 ) April 28, 2017 $ 261 $ — $ 30 $ 291 Charges 25 — 20 45 Cash payments (132 ) — (32 ) (164 ) Accrual adjustments (38 ) — 4 (34 ) April 27, 2018 $ 116 $ — $ 22 $ 138 For fiscal year 2018 , the Company recognized $45 million in charges, partially offset by accrual adjustments of $34 million . Accrual adjustments related to certain employees identified for termination finding other positions within the Company, cancellations of employee terminations, and employee termination benefits being less than initially estimated. For fiscal year 2018 , charges included $12 million recognized within cost of products sold and $4 million recognized within selling, general and administrative expense in the consolidated statements of income. 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 16 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 accrual adjustments of $68 million . Accrual adjustments relate to certain employees identified for termination finding other positions within the Company, cancellations of employee terminations, and employee termination benefits being less than initially estimated. For 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. For fiscal year 2016, the Company recognized $332 million in charges, partially offset by accrual adjustments of $18 million . Accrual adjustments relate to certain employees identified for termination finding other positions within the Company, cancellations of employee terminations, and employee termination benefits being less than initially estimated. For fiscal year 2016, asset write-downs included $14 million of property, plant, and equipment impairments. Fiscal year 2016 assets write-downs also included $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. 27, 2018 | |
Other Income and Expenses [Abstract] | |
Special Charge | Special Charge Continuing the Company's commitment to improve the health of people and communities throughout the world, the Company recognized a charge of $80 million in fiscal year 2018 and $100 million in fiscal year 2017 for charitable contributions to the Medtronic Foundation. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Apr. 27, 2018 | |
Investments [Abstract] | |
Financial Instruments | Financial Instruments The Company holds investments, including marketable debt and equity securities, that are classified and accounted for as 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. The following table summarizes the Company's investments by significant investment category and consolidated balance sheet classification at April 27, 2018 : 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 $ 732 $ — $ (26 ) $ 706 $ 706 $ — Marketable equity securities 63 99 — 162 — 162 Total Level 1 795 99 (26 ) 868 706 162 Level 2: Corporate debt securities 4,179 20 (75 ) 4,124 4,124 — U.S. government and agency securities 848 — (24 ) 824 824 — Mortgage-backed securities 725 2 (34 ) 693 693 — Non-U.S. government and agency securities 74 — (1 ) 73 73 — Other asset-backed securities 358 — (2 ) 356 356 — Debt funds 739 — (154 ) 585 585 — Total Level 2 6,923 22 (290 ) 6,655 6,655 — Level 3: Auction rate securities 47 — (3 ) 44 — 44 Total Level 3 47 — (3 ) 44 — 44 Investments measured at net asset value (1) : Debt funds 199 — (2 ) 197 197 — Total available-for-sale securities 7,964 121 (321 ) 7,764 7,558 206 Cost method, equity method, and other investments: Level 3: Cost method, equity method, and other investments 353 — — N/A — 353 Total Level 3: 353 — — N/A — 353 Total cost method, equity method, and other investments 353 — — N/A — 353 Total investments $ 8,317 $ 121 $ (321 ) $ 7,764 $ 7,558 $ 559 (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 category and 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 — Non-U.S. 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: Auction rate securities 47 — (3 ) 44 — 44 Corporate debt securities 1 — — 1 — 1 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. 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 27, 2018 and April 28, 2017 : April 27, 2018 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized Corporate debt securities $ 2,620 $ (58 ) $ 272 $ (17 ) U.S. government and agency securities 762 (33 ) 374 (17 ) Mortgage-backed securities 442 (15 ) 102 (19 ) Non-U.S. government and agency securities 32 — 36 (1 ) Other asset-backed securities 238 (1 ) 63 (1 ) Debt funds 7 — 775 (156 ) Auction rate securities — — 44 (3 ) Total $ 4,101 $ (107 ) $ 1,666 $ (214 ) April 28, 2017 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate debt securities $ 1,263 $ (19 ) $ 46 $ (4 ) U.S. government and agency securities 896 (15 ) — — Mortgage-backed securities 276 (4 ) 95 (12 ) Other asset-backed securities 127 (1 ) — — Debt funds 173 (1 ) 1,125 (183 ) Auction rate securities — — 44 (3 ) Marketable equity securities 14 (3 ) 2 (1 ) Total $ 2,749 $ (43 ) $ 1,312 $ (203 ) The following table presents the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 at April 27, 2018 : 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 2018 or 2017 . 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 Securities Auction Rate Securities April 29, 2016 $ 45 $ 1 $ 44 Settlements — — — April 28, 2017 45 1 44 Settlements (1 ) (1 ) — April 27, 2018 $ 44 $ — $ 44 Activity related to the Company’s investment portfolio was as follows: Fiscal Year 2018 2017 2016 (in millions) Debt (1) Equity (2) Debt (1) Equity (2) Debt (1) Equity (2) Proceeds from sales $ 4,114 $ 113 $ 5,224 $ 132 $ 9,881 $ 42 Gross realized gains 30 15 75 49 36 38 Gross realized losses (25 ) — (56 ) — (53 ) — Recognized impairment losses — (231 ) — (30 ) — (114 ) (1) Includes available-for-sale debt securities and debt funds. (2) Includes marketable equity securities, cost method, equity method, exchange-traded funds, and other investments. Credit losses represent the difference between the present value of cash flows expected to be collected on certain mortgage-backed securities and auction rate securities and the amortized cost of these securities. Based on 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 27, 2018 and April 28, 2017 , 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 2018 and 2017 were no t significant. The April 27, 2018 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 27, 2018 Due in one year or less $ 887 Due after one year through five years 2,687 Due after five years through ten years 3,138 Due after ten years 108 Total debt securities $ 6,820 The Company holds investments in marketable equity securities, which are classified as other assets in the consolidated balance sheets. At April 27, 2018 and April 28, 2017 , the aggregate carrying amount of these investments was $162 million and $103 million , respectively. The Company did not recognize any significant impairment charges related to marketable equity securities during fiscal years 2018 , 2017 , or 2016 . 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 27, 2018 and April 28, 2017 , the aggregate carrying amount of equity and other securities accounted for using the cost or equity method was $353 million and $589 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 events or changes in circumstances are identified 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 are included within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value. To determine the fair value of these investments, the Company uses all pertinent financial information available related to the investees, including financial statements, market participant valuations from recent and proposed equity offerings, and other third-party data. During fiscal year 2018 , the Company received bids from potential buyers and investors for some or all of its ownership in a portfolio of selected investments, which indicated that the fair values of certain of the underlying cost and equity method investments in the portfolio may be below the respective carrying values. The Company determined that the decline in the fair values was other-than-temporary given the uncertainty regarding the Company’s intent to hold the investments for a period of time that would be sufficient to recover the carrying values. As a result, the Company recognized impairment charges of $227 million during fiscal year 2018 , which were recognized within investment loss in the consolidated statements of income. The fair values of the investments were determined based on Level 3 inputs. The carrying value of the investments prior to recognizing the impairment charges was $317 million . In April 2018, the Company transferred the portfolio of investments into a newly created, wholly-owned entity. In a subsequent transaction, the Company sold a significant interest in the new entity in exchange for cash proceeds of $72 million . The Company’s remaining investment in the entity of $18 million is accounted for using the equity method. No gain or loss was recognized on the transaction. During fiscal year 2016 , the Company recognized an impairment charge of $70 million related to the impairment of a debt investment accounted for using the cost method, which was recognized within investment loss in the consolidated statements of income. There were no other significant impairment charges recognized during fiscal years 2018 , 2017 , and 2016 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Apr. 27, 2018 | |
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 segment: (in millions) Cardiac and Vascular Group Minimally Invasive Therapies Group Restorative Therapies Group Diabetes Group Total April 29, 2016 $ 6,243 $ 23,784 $ 9,620 $ 1,853 $ 41,500 Goodwill as a result of acquisitions 457 242 33 — 732 Currency translation (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 Goodwill as a result of acquisitions 6 10 9 27 52 Purchase accounting adjustments 54 — — — 54 Currency translation 80 734 108 — 922 April 27, 2018 $ 6,791 $ 21,155 $ 9,717 $ 1,880 $ 39,543 The Company did no t recognize any goodwill impairments during fiscal years 2018 , 2017 , or 2016 . Intangible Assets The following table presents the gross carrying amount and accumulated amortization of intangible assets: April 27, 2018 April 28, 2017 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 16,949 $ (3,139 ) $ 16,862 $ (2,166 ) Purchased technology and patents 11,569 (4,441 ) 11,461 (3,690 ) Trademarks and tradenames 822 (569 ) 772 (461 ) Other 94 (52 ) 77 (42 ) Total $ 29,434 $ (8,201 ) $ 29,172 $ (6,359 ) Indefinite-lived: IPR&D $ 490 $ 594 The Company did no t recognize any definite-lived intangible asset impairments during fiscal years 2018 , 2017 , or 2016 . During fiscal year 2018 , the Company recognized impairment losses on indefinite-lived intangibles of $68 million as a result of the discontinuation of certain IPR&D projects within the Restorative Therapies Group segment, which were recognized within other expense, net in the consolidated statements of income. The Company did no t recognize any significant indefinite-lived asset impairments during fiscal years 2017 or 2016 . 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, or the discontinuation of certain projects, and as a result, may recognize impairment losses in the future. Amortization Intangible asset amortization expense for fiscal years 2018 , 2017 , and 2016 was $1.8 billion , $2.0 billion , and $1.9 billion , respectively. Estimated aggregate amortization expense by fiscal year based on the current carrying value and remaining estimated useful lives of definite-lived intangible assets at April 27, 2018 , excluding any possible future amortization associated with acquired IPR&D which has not met technological feasibility, is as follows: (in millions) Amortization Expense 2019 $ 1,633 2020 1,583 2021 1,568 2022 1,548 2023 1,481 |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Apr. 27, 2018 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements Current debt obligations consisted of the following: (in millions) April 27, 2018 April 28, 2017 Bank borrowings $ 355 $ 396 Capital lease obligations 5 5 Commercial paper 698 901 1.700 percent two-year 2017 senior notes 1,000 — 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 Debt premium, net — 26 Current debt obligations $ 2,058 $ 7,520 Bank Borrowings Outstanding bank borrowings at April 27, 2018 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 0.21% , and the borrowing is a natural hedge of currency and exchange rate risk. 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. Commercial paper outstanding at April 27, 2018 was $698 million , as compared to $901 million at April 28, 2017 . During fiscal years 2018 and 2017 , the weighted average original maturity of the commercial paper outstanding was approximately 28 days and 39 days , respectively, and the weighted average interest rate was 1.46 percent and 0.89 percent , respectively. The issuance of commercial paper reduces the amount of credit available under the Company's existing Credit Facility, defined below. Line of Credit The Company has a $3.5 billion five year revolving syndicated line of credit facility (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 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 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 27, 2018 and April 28, 2017 , 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 27, 2018 . 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 provided guarantees of the obligations of Medtronic, Inc. under the Term Loan Credit Agreement. During fiscal year 2018 , the Company repaid its senior unsecured term loan, including interest, for $3.0 billion . Long-term debt consisted of the following: April 27, 2018 April 28, 2017 (in millions, except interest rates) Maturity by Fiscal Year Amount Effective Interest Rate Amount Effective Interest Rate 5.600 percent ten-year 2009 senior notes 2019 — 5.61 400 5.61 1.700 percent two-year 2017 senior notes 2019 — 1.74 1,000 1.74 4.450 percent ten-year 2010 senior notes 2020 — 4.47 766 4.47 Floating rate five-year 2015 senior notes 2020 500 2.92 500 1.98 2.500 percent five-year 2015 senior notes 2020 2,500 2.52 2,500 2.52 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 3.150 percent seven-year 2015 senior notes 2022 2,500 3.18 2,500 3.18 3.125 percent ten-year 2012 senior notes 2022 675 3.16 675 3.16 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 3.35 850 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 4.63 4,150 4.63 Bank borrowings 2020-2022 125 3.99 139 1.28 Debt premium, net 2020-2045 120 — 135 — Capital lease obligations 2020-2025 21 4.46 23 4.81 Interest rate swaps 2021-2022 (6 ) — 40 — Deferred financing costs 2020-2045 (107 ) — (128 ) — Long-term debt $ 23,699 $ 25,921 Senior Notes The Company has outstanding unsecured senior obligations, described as senior notes in the tables 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 27, 2018 . 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 April 2018, the Company completed an early redemption of approximately $1.2 billion of Senior Notes for $1.2 billion of total consideration. The Company recognized a loss on the debt redemption of $38 million , which included cash premiums and accelerated amortization of deferred financing costs. The loss was recognized in interest expense, net in the consolidated statements of income. 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 in fiscal year 2019. The second tranche consisted of $850 million of 3.350 percent Senior Notes due in fiscal year 2027. Concurrent with the offering by Medtronic Luxco, Medtronic, Inc. issued $150 million in principal amount of its 4.625 percent Senior Notes due in fiscal year 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 in fiscal year 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. The Company 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 a loss of $20 million 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, which was recognized in interest expense, net in the consolidated statements of income. At April 27, 2018 and April 28, 2017 , 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. 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) 2019 $ 2,058 2020 3,006 2021 1,122 2022 3,275 2023 1,192 Thereafter 15,097 Total debt 25,750 Less: Current portion of debt 2,058 Long-term portion of debt $ 23,692 Financial Instruments Not Measured at Fair Value At April 27, 2018 , the estimated fair value of the Company’s Senior Notes was $25.1 billion compared to a principal value of $24.5 billion . At April 28, 2017 the estimated fair value was $30.4 billion compared to a principal value of $28.9 billion . The fair value was estimated using quoted market prices for the publicly registered Senior Notes, which are 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 hedging activity. |
Derivatives and Currency Exchan
Derivatives and Currency Exchange Risk Management | 12 Months Ended |
Apr. 27, 2018 | |
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 cash flows related to all of the Company's derivative instruments are reported as operating activities in the consolidated statements of cash flows. The primary currencies of the derivative instruments are the Euro, Japanese Yen, and British Pound. 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 $11.5 billion and $10.8 billion at April 27, 2018 and April 28, 2017 , respectively. The following information 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 and statements of income. Freestanding Derivative Contracts Freestanding derivative contracts are primarily 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 foreign currencies. The gross notional amount of the Company's currency exchange rate contracts outstanding at April 27, 2018 and April 28, 2017 was $5.2 billion and $4.9 billion , respectively. The Company's freestanding currency exchange rate contracts 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 Company also entered into total return swaps in fiscal year 2018 , which are used to hedge the liability of a non-qualified, deferred compensation plan. The gross notional amount of the Company's total return swaps outstanding at April 27, 2018 was $210 million . The Company's total return swaps are not designated as hedges, and therefore, changes in the value of these instruments are recognized in earnings. The amounts and classification of the gains (losses) in the consolidated statements of income related to derivative instruments, not designated as hedging instruments, for fiscal years 2018 , 2017 , and 2016 are as follows: Fiscal Year (in millions) Classification 2018 2017 2016 Currency exchange rate contracts Other expense, net $ (253 ) $ 54 $ 33 Total return swaps Other expense, net 27 — — Total $ (226 ) $ 54 $ 33 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 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 2018 , 2017 , or 2016 . No components of the hedge contracts were excluded in the measurement of hedge ineffectiveness, and no hedges were derecognized or discontinued during fiscal years 2018 , 2017 , or 2016 . The gross notional amount of these contracts, designated as cash flow hedges, outstanding at April 27, 2018 and April 28, 2017 was $6.3 billion and $5.8 billion , respectively, and will mature within the subsequent two -year period. The amount of gross gains (losses), classification of the gains (losses) in the consolidated statements of income, and the AOCI related to the effective portion of currency exchange rate contract derivative instruments designated as cash flow hedges for fiscal years 2018 , 2017 , and 2016 were as follows: Fiscal Year 2018 Recognized in AOCI Recognized in Income (in millions) Amount Classification Amount Currency exchange rate contracts $ (404 ) Other expense, net $ (69 ) Fiscal Year 2017 Recognized in AOCI Recognized in Income (in millions) Amount Classification Amount Currency exchange rate contracts $ 342 Other expense, net $ 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 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 is immediately recognized in interest expense, net . During fiscal year 2017 , in connection with the issuance of the 2017 Senior Notes, the Company terminated $300 million of fixed pay, forward starting interest rate swaps with a weighted average fixed rate of 3.10 percent . 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. During fiscal years 2017 and 2016 , there were $21 million and $23 million , respectively, of unrealized gains recorded in accumulated other comprehensive loss . No gains or losses related to the ineffectiveness of forward starting interest rate derivative instruments were recognized in interest expense, net during fiscal years 2017 and 2016 . Additionally, during fiscal years 2017 and 2016 , no components of the forward starting interest rate derivative instruments were excluded in the measurement of hedge ineffectiveness and no hedges were derecognized or discontinued. The reclassification of the effective portion of the net losses from accumulated other comprehensive loss to interest expense, net was not significant. At April 27, 2018 and April 28, 2017 , the Company had $(207) million and $37 million , respectively, in after-tax net unrealized (losses) gains associated with cash flow hedging instruments recorded in accumulated other comprehensive loss . The Company expects that $111 million of after-tax net unrealized losses at April 27, 2018 will be recognized in the consolidated statements of income 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 recorded 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. At both April 27, 2018 and April 28, 2017 , the Company had interest rate swaps with 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 fiscal year 2021 and the $675 million 3.125 percent 2012 Senior Notes due fiscal year 2022. At April 27, 2018 , the market value of outstanding interest rate swap agreements was an unrealized loss of $6 million , as compared to an unrealized gain of $41 million at April 28, 2017 . At April 27, 2018 , the market value of the hedged items was an unrealized gain of $6 million , as compared to an unrealized loss of $41 million . The amounts were recorded in other assets with the offsets recorded in long-term debt on the consolidated balance sheets. No significant hedge ineffectiveness was recognized as a result of these fair value hedges for fiscal years 2018 , 2017 , or 2016 . In addition, the Company did no t recognize any gains or losses during fiscal years 2018 , 2017 , or 2016 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 27, 2018 and April 28, 2017 . 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 designated and do not qualify as hedging instruments, and are further segregated by type of contract within those two categories. April 27, 2018 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 Other current assets $ 37 Other accrued expenses $ 162 Interest rate contracts Other assets 8 Other liabilities 14 Currency exchange rate contracts Other assets 11 Other liabilities 51 Total derivatives designated as hedging instruments $ 56 $ 227 Derivatives not designated as hedging instruments Currency exchange rate contracts Other current assets $ 31 Other accrued expenses $ 25 Total return swaps Other current assets 4 Other accrued expenses — Stock warrants Other assets 21 Other liabilities — Cross currency interest rate contracts Other assets 6 Other liabilities 6 Total derivatives not designated as hedging instruments 62 31 Total derivatives $ 118 $ 258 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 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 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 The following table provides information by level for the derivative assets and liabilities that are measured at fair value on a recurring basis: April 27, 2018 April 28, 2017 (in millions) Level 1 Level 2 Level 1 Level 2 Derivative assets $ 79 $ 39 $ 216 $ 46 Derivative liabilities 238 20 93 11 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 27, 2018 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Cash Collateral (Received) Posted Securities Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 79 $ (61 ) $ — $ — $ 18 Interest rate contracts 8 (6 ) — — 2 Total return swaps 4 — — — 4 Stock warrants 21 — — — 21 Cross currency interest rate contracts 6 (4 ) — — 2 $ 118 $ (71 ) $ — $ — $ 47 Derivative liabilities: Currency exchange rate contracts $ (238 ) $ 61 $ — $ 74 $ (103 ) Interest rate contracts (14 ) 6 — 2 (6 ) Cross currency interest rate contracts (6 ) 4 — — (2 ) (258 ) 71 — 76 (111 ) Total $ (140 ) $ — $ — $ 76 $ (64 ) April 28, 2017 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Cash Collateral (Received) Posted Securities 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 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 27, 2018 , the Company posted net securities collateral of $76 million to its counterparties. At April 28, 2017 , the Company received net cash collateral of $60 million from its counterparties. The cash 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 security collateral posted remained in investments on the consolidated balance sheets. |
Inventories
Inventories | 12 Months Ended |
Apr. 27, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory balances, net of reserves, were as follows: (in millions) April 27, 2018 April 28, 2017 Finished goods $ 2,407 $ 2,211 Work-in-process 496 458 Raw materials 676 669 Total $ 3,579 $ 3,338 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Apr. 27, 2018 | |
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 27, 2018 April 28, 2017 Estimated Useful Lives Land and land improvements $ 187 $ 186 Up to 20 Buildings and leasehold improvements 2,265 2,175 Up to 40 Equipment 6,749 6,435 Generally 3-7, up to 15 Construction in progress 1,058 895 — Property, plant, and equipment 10,259 9,691 Less: Accumulated depreciation (5,655 ) (5,330 ) Property, plant, and equipment, net $ 4,604 $ 4,361 Depreciation is recognized using the straight-line method over the estimated useful lives of the assets. Depreciation expense of $821 million , $937 million , and $889 million was recognized in fiscal years 2018 , 2017 , and 2016 , 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. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Apr. 27, 2018 | |
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. At April 27, 2018 , 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. At April 27, 2018 , no Preferred Shares were issued or outstanding. A Preferred Shares The authorized share capital of the Company includes 500 thousand A Preferred Shares, with a par value of $1.00 per share. At April 27, 2018 , 1,872 A Preferred Shares were outstanding. 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 2018 and 2017 , the Company repurchased approximately 25 million and 43 million shares, respectively, at an average price of $83.71 and $83.03 , respectively. In June 2015, the Company's Board of Directors authorized, subject to the ongoing existence of sufficient distributable reserves, the repurchase of 80 million of the Company's ordinary shares. As described below, this authorization was replaced in June 2017. During fiscal year 2018, prior to the June 2017 repurchase program which became effective on June 26, 2017, the Company purchased approximately 13 million shares authorized under the June 2015 repurchase program. In June 2017, the Company’s Board of Directors replaced the June 2015 authorization to repurchase up to an aggregate number of ordinary shares with an authorization to expend up to an aggregate amount of $5.0 billion beginning June 26, 2017 to repurchase the Company’s ordinary shares. At April 27, 2018 , the Company had used approximately $1.0 billion of the $5.0 billion authorized under the repurchase program, leaving approximately $4.0 billion available for future repurchases. 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. 27, 2018 | |
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 Medtronic, Inc. 2013 Stock Award and Incentive Plan, which created the Medtronic plc 2013 Stock Award and Incentive Plan (2013 Plan). In fiscal year 2018 , 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 27, 2018 , there were approximately 63 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 2018 , 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 27, 2018 , the Company does no t have any outstanding restricted stock awards. Beginning in fiscal year 2018 , restricted stock units have a 4 -year ratable vesting term. Restricted stock units issued prior to fiscal year 2018 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 2018 , the Company granted restricted stock units under the 2013 Plan. At April 27, 2018 , 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 $69.41 per share in fiscal year 2018 . At April 27, 2018 , plan participants had approximately $11 million withheld to purchase the Company's ordinary shares at 85 percent of its market value on June 29, 2018, the last trading day before the end of the calendar quarter purchase period. At April 27, 2018 , approximately 16 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 2018 2017 2016 Weighted average fair value of options granted $ 13.71 $ 14.70 $ 13.72 Assumptions used: Expected life (years) (1) 6.16 6.18 5.94 Risk-free interest rate (2) 2.00 % 1.26 % 1.79 % Volatility (3) 19.51 % 21.07 % 21.00 % Dividend yield (4) 2.19 % 1.97 % 1.96 % (1) 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) 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) 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) 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 The following table presents the components and classification of stock-based compensation expense recognized for stock options, restricted stock, and ESPP in fiscal years 2018 , 2017 , and 2016 : Fiscal Year (in millions) 2018 2017 2016 Stock options $ 132 $ 157 $ 206 Restricted stock 185 169 148 Employee stock purchase plan 27 22 21 Total stock-based compensation expense $ 344 $ 348 $ 375 Cost of products sold $ 44 $ 49 $ 50 Research and development expense 38 41 37 Selling, general, and administrative expense 242 233 212 Restructuring charges — 2 18 Acquisition-related items 4 23 58 Divestiture-related items 16 — — Total stock-based compensation expense 344 348 375 Income tax benefits (82 ) (98 ) (108 ) Total stock-based compensation expense, net of tax $ 262 $ 250 $ 267 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 2018 : Options (in thousands) Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding at April 28, 2017 45,194 $ 62.41 Granted 3,773 83.92 Exercised (6,145 ) 43.72 Expired/Forfeited (1,783 ) 76.93 Outstanding at April 27, 2018 41,039 66.56 5.94 $ 637 Vested and expected to vest at April 27, 2018 23,093 77.30 7.12 115 Exercisable at April 27, 2018 17,136 51.43 4.25 520 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 2018 , 2017 , and 2016 : Fiscal Year (in millions) 2018 2017 2016 Cash proceeds from options exercised $ 250 $ 367 $ 452 Intrinsic value of options exercised 248 403 374 Tax benefit related to options exercised 75 140 131 Unrecognized compensation expense related to outstanding stock options at April 27, 2018 was $72 million and is expected to be recognized over a weighted average period of 2.0 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 2018 : Units in thousands) Wtd. Avg. Grant Price Nonvested at April 28, 2017 8,788 $ 76.49 Granted 2,683 83.88 Vested (2,589 ) 61.73 Forfeited (646 ) 78.90 Nonvested at April 27, 2018 8,236 $ 83.35 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 2018 , 2017 , and 2016 : Fiscal Year (in millions, except per share data) 2018 2017 2016 Weighted-average grant-date fair value per restricted stock $ 83.88 $ 85.07 $ 77.68 Fair value of restricted stock vested 160 131 276 Tax benefit related to restricted stock vested 63 76 76 Unrecognized compensation expense related to restricted stock as of April 27, 2018 was $307 million and is expected to be recognized over a weighted average period of 2.4 years . |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 27, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision is based on income before income taxes reported for financial statement purposes. The components of income before income taxes, based on tax jurisdiction, are as follows: Fiscal Year (in millions) 2018 2017 2016 U.S. $ (958 ) $ (234 ) $ 333 International 6,633 4,836 4,003 Income before income taxes $ 5,675 $ 4,602 $ 4,336 The income tax provision consists of the following: Fiscal Year (in millions) 2018 2017 2016 Current tax expense: U.S. $ 2,899 $ 614 $ 440 International 796 840 835 Total current tax expense 3,695 1,454 1,275 Deferred tax expense (benefit): U.S. 45 (399 ) (67 ) International (1,160 ) (477 ) (410 ) Net deferred tax benefit (1,115 ) (876 ) (477 ) Income tax provision $ 2,580 $ 578 $ 798 On December 22, 2017, the U.S. government enacted the Tax Act, which significantly revises U.S. corporate income taxation by, among other things, lowering the U.S. corporate income tax rate from 35.0 percent to 21.0 percent effective January 1, 2018, broadening the base of taxation, implementing a territorial tax system, and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. The decrease in the U.S. federal corporate tax rate from 35.0 percent to 21.0 percent results in a blended statutory tax rate of 30.5 percent for the Company's fiscal year 2018 . As discussed in Note 1 , the Company adopted guidance related to the finalization of the accounting for the income tax impacts of the Tax Act. Until the accounting for the income tax impacts of the Tax Act is complete, the reported amounts are based on reasonable estimates and are disclosed as provisional. As of April 27, 2018 , the Company had not fully completed its accounting for the tax effects of the enactment of the Tax Act. The Company’s income tax provision for fiscal year 2018 is based on a reasonable estimate of the transition tax and expected reversal of existing deferred tax balances. As a result of the Tax Act, the Company has removed its permanently reinvested assertion on historical earnings through April 27, 2018 for legal entities with accumulated earnings subject to the transition tax. The Company continues to evaluate its permanently reinvested assertion for certain legal entities. For the amounts which the Company was able to reasonably estimate, the Company recognized a provisional net tax charge of $2.4 billion within income tax provision in the consolidated statements of income. The components of the provisional tax amounts are as follows: • A provisional tax charge of $2.6 billion for the transition tax liability. The Company has not yet completed the calculation of the total post-1986 foreign earnings & profits (E&P) and the income tax pools for all foreign subsidiaries. Further, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when the Company finalizes the calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation and finalizes the amounts held in cash or other specified assets. In addition, further interpretations from U.S. federal and state governments and regulatory organizations may change the provisional tax liability or the accounting treatment of the provisional tax liability. • A provisional net tax benefit of $114 million associated with the change in the U.S. Federal statutory tax rate for the year and the remeasurement of certain deferred tax assets, liabilities, and valuation allowances. Because of the complexity of the new Global Intangible Low-Taxed Income (GILTI) tax rules, the Company continues to evaluate this provision of the Tax Act. The Company is allowed to make an accounting policy election of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred (the “period cost method”) or (2) factoring such amounts into the Company's measurement of its deferred taxes (the “deferred method”). The Company's selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing its global income to determine whether it can reasonably estimate the tax impact. The Company is currently in the process of analyzing its structure and is not yet able to determine the effect of this provision of the Tax Act. Therefore, the Company has not yet made a policy decision regarding whether to record deferred tax on GILTI and has not made any adjustments related to potential GILTI tax in its consolidated financial statements. Tax assets (liabilities), shown before jurisdictional netting of deferred tax assets (liabilities), are comprised of the following: (in millions) April 27, 2018 April 28, 2017 Deferred tax assets: Net operating loss, capital loss, and credit carryforwards $ 7,463 $ 6,800 Other accrued liabilities 410 658 Accrued compensation 209 427 Pension and post-retirement benefits 256 456 Stock-based compensation 190 278 Other 332 349 Inventory 207 277 Federal and state benefit on uncertain tax positions 67 191 Unrealized loss on available-for-sale securities and derivative financial instruments 93 — Gross deferred tax assets 9,227 9,436 Valuation allowance (7,166 ) (6,311 ) Total deferred tax assets 2,061 3,125 Deferred tax liabilities: Intangible assets (1,697 ) (4,943 ) Realized loss on derivative financial instruments (69 ) (112 ) Other (143 ) (74 ) Accumulated depreciation (38 ) (149 ) Unrealized gain on available-for-sale securities and derivative financial instruments — (18 ) Outside basis difference of subsidiaries (131 ) (112 ) Total deferred tax liabilities (2,078 ) (5,408 ) Prepaid income taxes 406 475 Income tax receivables 315 218 Tax assets (liabilities), net $ 704 $ (1,590 ) Reported as (after valuation allowance and jurisdictional netting): Other current assets $ 662 $ 545 Tax assets 1,465 1,550 Deferred tax liabilities (1,423 ) (2,978 ) Noncurrent liabilities held for sale — (707 ) Tax assets (liabilities), net $ 704 $ (1,590 ) No deferred taxes have been provided on the approximately $61.0 billion and $31.8 billion of undistributed earnings of the Company’s subsidiaries at April 27, 2018 and April 28, 2017 , respectively, since these earnings have been, and under current plans will continue to be, permanently reinvested in these subsidiaries. During fiscal year 2018 , the Company removed its permanently reinvested assertion on the undistributed earnings of certain foreign subsidiaries with a U.S. parent which were subject to the transition tax. The assertion was removed for all earnings of such subsidiaries through April 27, 2018 . Due to the number of legal entities and jurisdictions involved, the complexity of the legal entity structure of the Company, and the complexity of the tax laws in the relevant jurisdictions, 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. At April 27, 2018 , the Company had approximately $28.4 billion of net operating loss carryforwards in certain non-U.S. jurisdictions, of which $25.2 billion have no expiration, and the remaining $3.2 billion will expire during fiscal years 2019 through 2038. Included in these net operating loss carryforwards are $19.7 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 $8.7 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 27, 2018 , the Company had $963 million of U.S. federal net operating loss carryforwards, which will expire during fiscal years 2019 through 2036. For U.S. state purposes, the Company had $981 million of net operating loss carryforwards at April 27, 2018 , which will expire during fiscal years 2019 through 2038. At April 27, 2018 , the Company also had $174 million of tax credits available to reduce future income taxes payable, of which $58 million have no expiration. The remaining credits expire during fiscal years 2019 through 2038. The Company has established valuation allowances of $7.2 billion and $6.3 billion at April 27, 2018 and April 28, 2017 , respectively, primarily related to the uncertainty of the utilization of certain deferred tax assets which are primarily comprised of tax loss and credit carryforwards in various jurisdictions. The increase in the valuation allowance during fiscal year 2018 is primarily related to the establishment of a valuation allowance against current year generated losses, as well as the effects of currency fluctuations. These valuation allowances would result in a reduction to the income tax provision in the consolidated statements of income if they are ultimately not required. During fiscal year 2018 , the Company received a tax ruling confirming the treatment of various intercompany transactions, which have the effect of utilizing the $12.0 billion of non-U.S. special deductions previously disclosed. The ruling allowed the Company to offset some of the gain on the sale of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses within the Minimally Invasive Therapies Group segment, as well as recognize an income tax benefit associated with the intercompany sale of intellectual property and the associated elimination of a deferred tax liability. The Company’s effective income tax rate varied from the U.S. federal statutory tax rate as follows: Fiscal Year 2018 2017 2016 U.S. federal statutory tax rate 30.5 % 35.0 % 35.0 % Increase (decrease) in tax rate resulting from: U.S. state taxes, net of federal tax benefit 0.8 1.0 0.9 Research and development credit (0.8 ) (0.9 ) (1.2 ) Domestic production activities (0.1 ) (0.4 ) (0.3 ) International (18.8 ) (27.1 ) (23.4 ) Puerto Rico Excise Tax (1.1 ) (1.5 ) (1.6 ) Impact of adjustments (1) (8.5 ) 5.7 11.4 U.S. Tax Reform 43.0 — — Valuation allowance release (0.1 ) (1.0 ) (0.9 ) Stock based compensation (1.0 ) — — Other, net 1.6 1.8 (1.5 ) Effective tax rate 45.5 % 12.6 % 18.4 % (1) Adjustments include the impact of restructuring charges, net, acquisition- and divestiture-related items, certain litigation charges, special charge, debt redemption premium, inventory step-up, loss on previously held forward starting interest rate swaps, interest expense, net, and certain tax adjustments, net. During fiscal year 2018 , certain tax adjustments of $1.9 billion , recognized in income tax provision in the consolidated statements of income, included the following: • A net charge of $2.4 billion associated with U.S. tax reform, inclusive of the transition tax, remeasurement of U.S. Federal deferred tax assets and liabilities, and the decrease in the U.S. statutory tax rate. The Company’s income tax provision associated with the impact of the Tax Act for fiscal year 2018 is based on a reasonable estimate and will be finalized within the measurement period. • A charge of $73 million associated with an internal reorganization of certain foreign subsidiaries. • A net benefit of $579 million associated with the intercompany sale of intellectual property. During fiscal year 2017 , certain tax adjustments of $202 million , recognized in income tax provision in the consolidated statements of income, included 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 divestiture of a portion of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses to Cardinal. 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. During fiscal year 2016 , certain tax adjustments of $417 million , recognized in income tax provision in the consolidated statements of income, 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. 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 $446 million , $475 million , and $474 million in fiscal years 2018 , 2017 , and 2016 , respectively, and earnings per diluted share by $0.33 , $0.34 , and $0.33 in fiscal years 2018 , 2017 , and 2016 , respectively. Unless these grants are extended, they will expire between fiscal years 2019 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 tax incentive grants which expired during fiscal year 2018 did not have a material impact on the Company's consolidated financial statements. The Company had $1.7 billion , $1.9 billion , and $2.7 billion of gross unrecognized tax benefits at April 27, 2018 , April 28, 2017 , and April 29, 2016 , respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal years 2018 , 2017 , and 2016 is as follows: Fiscal Year (in millions) 2018 2017 2016 Gross unrecognized tax benefits at beginning of fiscal year $ 1,896 $ 2,703 $ 2,860 Gross increases: Prior year tax positions 13 147 36 Current year tax positions 63 75 202 Acquisitions — 4 — Gross decreases: Prior year tax positions (120 ) (538 ) (116 ) Settlements (80 ) (467 ) (275 ) Statute of limitation lapses (45 ) (28 ) (4 ) Gross unrecognized tax benefits at end of fiscal year 1,727 1,896 2,703 Cash advance paid to taxing authorities (859 ) — (384 ) Gross unrecognized tax benefits at end of fiscal year, net of cash advance $ 868 $ 1,896 $ 2,319 If all of the Company’s unrecognized tax benefits at April 27, 2018 , April 28, 2017 , and April 29, 2016 were recognized, $1.7 billion , $1.8 billion , and $2.1 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, net of cash advance, of $868 million as a noncurrent 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 $25 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 income tax provision in the consolidated statements of income and records the liability in the current or noncurrent accrued income taxes in the consolidated balance sheets, as appropriate. The Company had $128 million , $360 million , and $609 million of accrued gross interest and penalties at April 27, 2018 , April 28, 2017 , and April 29, 2016 , respectively. During fiscal years 2018 , 2017 , and 2016 , the Company recognized gross interest expense (income) of approximately $84 million , $(208) million , and $80 million , respectively, in income tax provision in the consolidated statements of income. During fiscal year 2018 , the Company made a $1.1 billion advance payment to the IRS in connection with certain tax matters for fiscal years 2005 through 2014. This payment is comprised of $859 million of tax and $285 million of interest. 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 1998 Brazil 2013 Canada 2010 China 2009 Costa Rica 2014 Dominican Republic 2013 Germany 2010 India 2002 Ireland 2012 Israel 2010 Italy 2005 Japan 2015 Luxembourg 2013 Mexico 2005 Puerto Rico 2011 Singapore 2013 Switzerland 2012 United Kingdom 2016 See Note 19 for additional information regarding the status of current tax audits and proceedings. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Apr. 27, 2018 | |
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-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) 2018 2017 2016 Numerator: Net income attributable to ordinary shareholders $ 3,104 $ 4,028 $ 3,538 Denominator: Basic – weighted average shares outstanding 1,356.7 1,378.9 1,409.6 Effect of dilutive securities: Employee stock options 7.9 9.0 12.2 Employee restricted stock units 3.3 3.4 4.0 Other 0.3 0.1 0.1 Diluted – weighted average shares outstanding 1,368.2 1,391.4 1,425.9 Basic earnings per share $ 2.29 $ 2.92 $ 2.51 Diluted earnings per share $ 2.27 $ 2.89 $ 2.48 The calculation of weighted average diluted shares outstanding excludes options to purchase approximately 10 million , 7 million , and 4 million ordinary shares in fiscal years 2018 , 2017 , and 2016 , respectively, because their effect would have been anti-dilutive on the Company’s earnings per share. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Apr. 27, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans 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. The expense related to these plans was $552 million , $602 million , and $584 million in fiscal years 2018 , 2017 , and 2016 , 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 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. U.S. and Puerto Rico employees are also eligible to receive a medical benefit component, in addition to normal retirement benefits, through the Company’s post-retirement benefits. At April 27, 2018 and April 28, 2017 , the net underfunded status of the Company’s benefit plans was $942 million and $1.3 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. Pension and post-retirement benefit liabilities held for sale at April 28, 2017 were divested during fiscal year 2018 as part of the sale of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses. 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) 2018 2017 2018 2017 Accumulated benefit obligation at end of year: $ 2,943 $ 2,879 $ 1,580 $ 1,518 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 3,232 $ 3,048 $ 1,734 $ 1,535 Service cost 116 117 67 70 Interest cost 117 109 28 26 Employee contributions — — 12 15 Plan curtailments and settlements (168 ) — (8 ) 6 Actuarial (gain) loss 12 (22 ) (74 ) 182 Benefits paid (107 ) (80 ) (51 ) (43 ) Special termination benefits — 60 — — Currency exchange rate changes and other — — 146 (57 ) Divestiture — — (63 ) — Projected benefit obligation at end of year $ 3,202 $ 3,232 $ 1,791 $ 1,734 Change in plan assets: Fair value of plan assets at beginning of year $ 2,479 $ 2,138 $ 1,235 $ 1,113 Actual return on plan assets 243 238 67 109 Employer contributions 215 183 90 76 Employee contributions — — 13 15 Plan settlements (168 ) — (4 ) (1 ) Benefits paid (108 ) (80 ) (51 ) (43 ) Currency exchange rate changes and other — — 108 (34 ) Divestiture — — (54 ) — Fair value of plan assets at end of year $ 2,661 $ 2,479 $ 1,404 $ 1,235 Funded status at end of year: Fair value of plan assets $ 2,661 $ 2,479 $ 1,404 $ 1,235 Benefit obligations 3,202 3,232 1,791 1,734 Underfunded status of the plans (541 ) (753 ) (387 ) (499 ) Recognized liability $ (541 ) $ (753 ) $ (387 ) $ (499 ) Amounts recognized on the consolidated balance sheets consist of: Non-current assets $ — $ — $ 16 $ 5 Current liabilities (17 ) (13 ) (8 ) (7 ) Non-current liabilities (524 ) (740 ) (395 ) (497 ) Recognized liability $ (541 ) $ (753 ) $ (387 ) $ (499 ) Amounts recognized in accumulated other comprehensive loss: Prior service cost (benefit) $ 2 $ 3 $ (9 ) $ (6 ) Net actuarial loss 1,088 1,212 380 450 Ending balance $ 1,090 $ 1,215 $ 371 $ 444 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 27, 2018 and April 28, 2017 . U.S. and non-U.S. plans with accumulated benefit obligations in excess of plan assets consist of the following: Fiscal Year (in millions) 2018 2017 Accumulated benefit obligation $ 4,110 $ 4,188 Projected benefit obligation 4,282 4,677 Plan assets at fair value 3,472 3,454 Plans with projected benefit obligations in excess of plan assets consist of the following: Fiscal Year (in millions) 2018 2017 Projected benefit obligation $ 4,736 $ 4,903 Plan assets at fair value 3,793 3,646 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) 2018 2017 2016 2018 2017 2016 Service cost $ 116 $ 117 $ 120 $ 67 $ 70 $ 81 Interest cost 117 109 122 28 26 31 Expected return on plan assets (205 ) (195 ) (180 ) (53 ) (48 ) (48 ) Amortization of prior service cost 1 1 — — (1 ) — Amortization of net actuarial loss 82 88 98 18 17 20 Settlement loss (gain) 16 — (1 ) — — (10 ) Special termination benefits — 60 — — — — Net periodic benefit cost $ 127 $ 180 $ 159 $ 60 $ 64 $ 74 The other changes in plan assets and projected benefit obligations recognized in accumulated other comprehensive loss for fiscal year 2018 are as follows: (in millions) U.S. Pension Benefits Non-U.S. Pension Benefits Net actuarial gain $ (27 ) $ (88 ) Amortization of prior service cost (1 ) — Amortization of net actuarial loss (82 ) (18 ) Prior service cost — (4 ) Effect of exchange rates — 37 Settlement loss (17 ) — Total recognized in accumulated other comprehensive loss $ (127 ) $ (73 ) Total recognized in net periodic benefit cost and accumulated other comprehensive loss $ — $ (13 ) The estimated net actuarial loss that will be amortized from accumulated other comprehensive loss into net periodic benefit cost, before tax, in fiscal year 2019 for U.S. and non-U.S. pension benefits is expected to be $77 million and $11 million , respectively. The actuarial assumptions are as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Fiscal Year Fiscal Year 2018 2017 2016 2018 2017 2016 Critical assumptions – projected benefit obligation: Discount rate 4.20% - 4.35% 3.70% - 4.30% 3.60% - 4.30% 0.70% - 11.00% 0.45% - 11.40% 0.25% - 10.20% Rate of compensation increase 3.90 % 3.90 % 3.90 % 2.88 % 2.89 % 2.83 % Critical assumptions – net periodic benefit cost: Discount rate – benefit obligation 4.00% - 4.30% 3.55% - 4.30% 4.20% - 4.80% 0.45% - 11.40% 0.25% - 10.20% 0.80% - 9.00% Discount rate – service cost 3.70% - 4.45% 3.60% - 4.45% 4.20% - 4.80% 0.20% - 11.40% 0.05% - 10.20% 0.80% - 9.00% Discount rate – interest cost 3.45% - 3.80% 2.90% - 3.80% 4.20% - 4.80% 0.45% - 11.40% 0.30% - 10.20% 0.80% - 9.00% Expected return on plan assets 7.90 % 8.20 % 8.20 % 4.20 % 4.45 % 4.35 % Rate of compensation increase 3.90 % 3.90 % 3.90 % 2.89 % 2.83 % 2.92 % 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 27, 2018 for the plans are 38% equity securities, 29% debt securities, and 33% other. The plans did not hold any investments in the Company’s ordinary shares at April 27, 2018 or April 28, 2017 . The Company’s U.S. plans target asset allocations at April 27, 2018 , compared to the U.S. plans actual asset allocations at April 27, 2018 and April 28, 2017 by asset category, are as follows: U.S. Plans Target Allocation Actual Allocation April 27, 2018 April 27, 2018 April 28, 2017 Asset Category: Equity securities 49 % 49 % 45 % Debt securities 32 32 37 Other 19 19 18 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 27, 2018 , there are no funds in the process of liquidation. 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 27, 2018 is $168 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 27, 2018 , there are no real estate investments 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 2018 or 2017 . 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 27, 2018 and April 28, 2017. U.S. Pension Benefits Fair Value at Fair Value Measurements Using Inputs Considered as Investments Measured at Net Asset Value (in millions) April 27, 2018 Level 1 Level 2 Level 3 Short-term investments $ 181 $ 181 $ — $ — $ — U.S. government securities 181 181 — — — Corporate debt securities 142 — 142 — — Equity commingled trusts 1,322 — — — 1,322 Fixed income commingled trusts 298 — — — 298 Partnership units 537 — — 537 — $ 2,661 $ 362 $ 142 $ 537 $ 1,620 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 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) Partnership Units April 28, 2017 $ 468 Total realized losses (42 ) Total unrealized gains 141 Purchases and sales, net (30 ) April 27, 2018 $ 537 (in millions) Partnership Units April 29, 2016 $ 462 Total realized gains 25 Total unrealized gains 28 Purchases and sales, net (47 ) April 28, 2017 $ 468 Non-U.S. Pension Benefits Fair Value at Fair Value Measurements Using Inputs Considered as Investments Measured at Net Asset Value (in millions) April 27, 2018 Level 1 Level 2 Level 3 Registered investment companies $ 1,362 $ — $ — $ — $ 1,362 Insurance contracts 42 — — 42 — $ 1,404 $ — $ — $ 42 $ 1,362 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 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) Insurance Contracts April 28, 2017 $ 44 Total unrealized gains 2 Purchases and sales, net (7 ) Currency exchange rate changes 3 April 27, 2018 $ 42 (in millions) Insurance Contracts April 29, 2016 $ 76 Total unrealized gains 2 Purchases and sales, net (31 ) Currency exchange rate changes (3 ) April 28, 2017 $ 44 Retirement Benefit Plan Funding It is the Company’s policy to fund retirement costs within the limits of allowable tax deductions. During fiscal year 2018 , the Company made discretionary contributions of approximately $215 million to the U.S. pension plan. Internationally, the Company contributed approximately $90 million for pension benefits during fiscal year 2018 . The Company anticipates that it will make contributions of $91 million and $85 million to its U.S. pension benefit plans and non-U.S. pension benefit plans, respectively, in fiscal year 2019 . 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 2019 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 2019 $ 106 $ 49 2020 115 45 2021 123 48 2022 133 51 2023 143 58 2024 – 2028 890 323 Total $ 1,510 $ 574 Post-retirement Benefit Plans The net periodic benefit cost associated with the Company’s post-retirement benefit plans was income of $9 million in fiscal year 2018 and expense of $11 million and $12 million in fiscal years 2017 and 2016 , respectively. The Company’s projected benefit obligation for all post-retirement benefit plans was $317 million and $323 million at April 27, 2018 and April 28, 2017 , respectively. The Company’s fair value of plan assets for all post-retirement benefit plans was $303 million and $289 million at April 27, 2018 and April 28, 2017 , respectively. The activity during fiscal year 2018 related to the change in projected benefit obligation was not material. The decrease of $46 million 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 years 2018 and 2017 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 $374 million , $347 million , and $269 million in fiscal years 2018 , 2017 , and 2016 , 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 $56 million , $58 million , and $58 million in fiscal years 2018 , 2017 , and 2016 , 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 $ 49 million , $45 million , and $12 million and in fiscal years 2018 , 2017 , and 2016 , respectively. |
Leases
Leases | 12 Months Ended |
Apr. 27, 2018 | |
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 27, 2018 are: (in millions) Fiscal Year Capitalized Leases Operating Leases 2019 $ 5 $ 234 2020 5 182 2021 4 133 2022 3 87 2023 3 43 Thereafter 6 74 Total minimum lease payments $ 26 $ 753 Less amounts representing interest (5 ) N/A Present value of net minimum lease payments $ 21 N/A Rent expense for all operating leases was $319 million , $294 million , and $269 million in fiscal years 2018 , 2017 , and 2016 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Apr. 27, 2018 | |
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 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 ) Other comprehensive (loss) income before reclassifications (95 ) 1,218 100 (272 ) 951 Reclassifications (8 ) (34 ) 67 54 79 Other comprehensive (loss) income (103 ) 1,184 167 (218 ) 1,030 Cumulative effect of change in accounting principle (1) (22 ) — (155 ) (26 ) (203 ) April 27, 2018 $ (194 ) $ (268 ) $ (1,117 ) $ (207 ) $ (1,786 ) (1) See Note 1 to the consolidated financial statements for discussion regarding the adoption of accounting standards during fiscal year 2018. The income tax on gains and losses on available-for-sale securities in other comprehensive income before reclassifications during fiscal years 2018 , 2017 , and 2016 was an expense of $26 million , an expense of $41 million , and a benefit of $94 million , respectively. During fiscal years 2018 , 2017 , and 2016 , realized gains and losses on available-for-sale securities reclassified from AOCI were reduced by income taxes of $4 million fiscal year 2018 and $8 million in fiscal years 2017 and 2016 . 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. During fiscal year 2018 , there was no tax impact on cumulative translation adjustments. However, due to recently enacted U.S. Tax Reform and change in permanently reinvested assertion with respect to certain earnings, the Company continues to evaluate the tax impact these events may have on cumulative translation adjustments. During fiscal years 2017 and 2016 , taxes were not provided on cumulative translation adjustments as substantially all translation adjustments relate to earnings that were intended to be definitely 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 2018 , 2017 , and 2016 was an expense of $14 million , an expense of $41 million , and a benefit of $85 million , respectively. During fiscal years 2018 , 2017 , and 2016 , the gains and losses on defined benefit and pension items reclassified from AOCI were reduced by income taxes of $27 million , $23 million , and $39 million , respectively. Refer to Note 16 for additional information. The income tax on unrealized gains and losses on derivative financial instruments in other comprehensive income before reclassifications during fiscal years 2018 , 2017 , and 2016 was a benefit of $132 million , an expense of $130 million , and a benefit of $51 million , respectively. During fiscal years 2018 , 2017 , and 2016 , gains and losses on derivative financial instruments reclassified from AOCI were reduced by income taxes of $22 million , $61 million , and $121 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 . Refer to Note 9 for additional information. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 27, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company and its affiliates are involved in a number of legal actions involving product liability, intellectual property and commercial disputes, shareholder related matters, environmental proceedings, income tax disputes, and governmental proceedings and investigations, 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 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 27, 2018 and April 28, 2017 , accrued litigation was approximately $0.9 billion and $1.1 billion , respectively. The ultimate cost to the Company with respect to accrued litigation 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, and/or cash flows. The Company includes accrued litigation in other accrued expenses and other liabilities on the consolidated balance sheets. While it is not possible to predict the outcome for most of the legal matters discussed below, the Company believes it is possible that the costs associated with these matters could have a material adverse impact on the Company’s consolidated earnings, financial position, and/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 recognized an expense for probable and estimable damages related to this matter, and accrued expenses for this matter are included within accrued litigation as discussed above. 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 had reached agreements to settle substantially all of these claims, resolving this litigation. The Company's accrued expenses for this matter are included within accrued litigation as discussed above. Pelvic Mesh Litigation The Company 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, 2018, the Company had reached agreements to settle approximately 14,400 of these claims. The Company's accrued expenses for this matter are included within accrued litigation 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 six 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 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 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. On January 30, 2018, the District Court issued an order certifying a class for the period of September 8, 2010 through June 28, 2011. 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 Merenstein 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. In August of 2017, the Minnesota Supreme Court affirmed the decision of the Minnesota State Court of Appeals, sending the matter back to the trial court for further proceedings. 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 these matters. 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's accrued expenses for this matter are included within accrued litigation as discussed above. Environmental Proceedings The Company 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 in calendar year 2018. The Company's accrued expenses for environmental proceedings are included within accrued litigation as discussed above. Government Matters Since 2011, the Company has responded to requests from the U.S. Department of Justice for information about business practices relating to several neurovascular products. The requests seek information dating back to 2010, in connection with neurovascular products developed and first marketed by Covidien or one of its predecessors, including ev3. The Company has fully cooperated and continues to cooperate with the requests, which are at various stages. The Company’s accrued expenses for the matters are included within accrued litigation as discussed above. Since 2014, the Company has responded to requests from the U.S. Department of Health and Human Services and the U.S. Department of Justice for information about business practices relating to several peripheral vascular products. The requests seek information dating back to 2009, in connection with peripheral vascular products developed and first marketed by Covidien or one of its predecessors, including ev3. The Company has fully cooperated and continues to cooperate with the requests, which are at various stages. 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. 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 reviewed this dispute, and on June 9, 2016, issued its opinion with respect to the allocation of income between the parties 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. On April 21, 2017, the IRS filed their Notice of Appeal to the U.S. Court of Appeals (the Court) for the 8th Circuit regarding the Tax Court Opinion. Oral argument for the Appeal occurred on March 14, 2018. 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. In May 2017, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2012, 2013, and 2014. Medtronic, Inc. reached agreement with the IRS on some but not all matters related to these fiscal years. The significant issues that remain unresolved relate to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico, and proposed adjustments associated with the utilization of certain net operating losses. The Company disagrees with the IRS and will attempt to resolve these matters at the IRS Appellate level. Medtronic, Inc.’s fiscal years 2015 and 2016 U.S. federal income tax returns are currently being audited by the IRS. Covidien and the IRS have concluded and reached agreement on its audit of Covidien’s U.S. federal income tax returns for all tax years through 2012. The statute of limitations for Covidien’s 2013 U.S. federal income tax returns lapsed during the first quarter of fiscal year 2018. Covidien’s fiscal year 2015 U.S. federal income tax returns are currently being audited by the IRS. While it is not possible to predict the outcome for most of the income tax matters discussed above, 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, and/or cash flows. See Note 14 for additional discussion of income taxes. Guarantees As a result of the acquisition of Covidien, the Company has a guarantee commitment related to certain contingent tax liabilities as a party to the Tax Sharing Agreement that was entered into on June 29, 2007, between Covidien, Tyco International (now Johnson Controls), and Tyco Electronics (now TE Connectivity), associated with the spin-off from Tyco. The Tax Sharing Agreement covers certain income tax liabilities for periods prior to and including the spin-off. Medtronic’s share of the income tax liabilities for these periods is 42 percent, with Johnson Controls and TE Connectivity share being 27 percent and 31 percent, respectively. If Johnson Controls 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. The most significant amounts at risk under this Tax Sharing Agreement were resolved with the U.S. Tax Court and IRS Appeals resolutions reached in May 2016. However, the Tax Sharing Agreement remains in place with respect to income tax liabilities that are not the subject of such resolution, including certain state and international tax matters that remain open. 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 tax years that remain 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 Tyco Electronics legal entities for periods prior to the 2007 separation. As part of the Company’s Minimally Invasive Therapies Group sale of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses to Cardinal on July 29, 2017, the Company has indemnified Cardinal for certain contingent tax liabilities related to the divested businesses that existed prior to the date of divestiture. The actual amounts that the Company may be required to ultimately accrue or pay could vary depending upon the outcome of the unresolved tax matters. In the normal course of business, the Company and/or its affiliates periodically enter into agreements that require one or more of the Company and/or its affiliates to indemnify customers or suppliers for specific risks, such as claims for injury or property damage arising as a result of the Company or its affiliates’ products, the negligence of the Company's personnel, or claims alleging that the Company's products infringe on third-party patents or other intellectual property. The Company also offers warranties on various products. The Company’s maximum exposure under these guarantees is unable to be estimated. Historically, the Company has not experienced significant losses on these types of guarantees. The Company believes the ultimate resolution of the above guarantees is not expected to have a material effect on the Company’s consolidated earnings, financial position, or cash flows. |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Apr. 27, 2018 | |
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 2018 $ 7,390 $ 7,050 $ 7,369 $ 8,144 $ 29,953 2017 7,166 7,345 7,283 7,916 29,710 Gross profit 2018 $ 5,041 $ 4,930 $ 5,178 $ 5,749 $ 20,898 2017 4,905 5,019 5,015 5,480 20,419 Net income (loss) 2018 $ 1,009 $ 2,013 $ (1,392 ) $ 1,465 $ 3,095 2017 929 1,111 820 1,164 4,024 Net income (loss) attributable to Medtronic 2018 $ 1,016 $ 2,017 $ (1,389 ) $ 1,460 $ 3,104 2017 929 1,115 821 1,163 4,028 Basic earnings (loss) per share 2018 $ 0.75 $ 1.49 $ (1.03 ) $ 1.08 $ 2.29 2017 0.67 0.81 0.60 0.85 2.92 Diluted earnings (loss) per share 2018 $ 0.74 $ 1.48 $ (1.03 ) $ 1.07 $ 2.27 2017 0.66 0.80 0.59 0.84 2.89 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. 27, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information The Company’s organizational structure is based upon four principal operating and reportable segments: the Cardiac and Vascular Group, the Minimally Invasive Therapies Group, the Restorative Therapies Group, and the Diabetes Group. The Company's management has chosen to organize the entity based upon therapy solutions. The four principal segments are strategic businesses that are managed separately, as each one develops and manufactures products and provides services oriented toward targeted therapy solutions. The primary products and services from which the Cardiac and Vascular Group segment derives its revenues include products for the diagnosis, treatment, and management of cardiac rhythm disorders and cardiovascular disease, as well as services to diagnose, treat, and manage heart- and vascular-related disorders and diseases. The primary products and services from which the Minimally Invasive Therapies Group segment derives its revenues include those focused on diseases of the respiratory system, gastrointestinal tract, renal system, lungs, pelvic region, kidneys, obesity, and other preventable complications. The primary products and services from which the Restorative Therapies Group segment derives its revenues include those focused on neurostimulation therapies and drug delivery systems for the treatment of chronic pain, as well as various areas of the spine and brain, along with pelvic health and conditions of the ear, nose, and throat. The primary products from which the Diabetes Group segment derives its revenues include those focused on diabetes management, including insulin pumps, continuous glucose monitoring systems, insulin pump consumables, and diabetes therapy management software. Segment disclosures are on a performance basis, consistent with internal management reporting. Net sales of the Company's segments include end-customer revenues from the sale of products the segment develops, manufactures, and distributes. There are certain corporate and centralized expenses that are not allocated to the segments. The Company's management evaluates the performance of the segments and allocates resources based on net sales and segment earnings before interest, taxes, and amortization ("Segment EBITA"). Segment EBITA represents income before income taxes, excluding interest expense, net, amortization of intangible assets, centralized distribution costs, certain corporate charges, and other items not allocated to the segments. The accounting policies of the segments are the same as those described in Note 1 . Certain depreciable assets may be recorded by one segment, while the depreciation expense is allocated to another segment. The allocation of depreciation expense is based on the proportion of the assets used by each segment. The following tables present reconciliations of financial information from the segments to the applicable line items in the Company's consolidated financial statements: Net Sales Fiscal Year (in millions) 2018 2017 2016 Cardiac and Vascular Group $ 11,354 $ 10,498 $ 10,196 Minimally Invasive Therapies Group 8,716 9,919 9,563 Restorative Therapies Group 7,743 7,366 7,210 Diabetes Group 2,140 1,927 1,864 Total $ 29,953 $ 29,710 $ 28,833 Segment EBITA Fiscal Year (in millions) 2018 2017 2016 Cardiac and Vascular Group $ 4,460 $ 4,134 $ 3,986 Minimally Invasive Therapies Group 3,346 3,434 3,373 Restorative Therapies Group 3,058 2,868 2,671 Diabetes Group 634 690 667 Segment EBITA 11,498 11,126 10,697 Interest expense, net (749 ) (728 ) (955 ) Amortization of intangible assets (1,823 ) (1,980 ) (1,931 ) Corporate (1,437 ) (1,232 ) (1,464 ) Centralized distribution costs (1,936 ) (1,543 ) (1,177 ) Restructuring and associated costs (107 ) (373 ) (299 ) Acquisition-related items (132 ) (230 ) (283 ) Certain litigation charges (61 ) (300 ) (26 ) Divestiture-related items (115 ) — — Gain on sale of businesses 697 — — Special charge (80 ) (100 ) — IPR&D impairment (46 ) — — Hurricane Maria (34 ) — — Impact of inventory step-up — (38 ) (226 ) Income Before Income Taxes $ 5,675 $ 4,602 $ 4,336 Total Assets and Depreciation Expense Total Assets Depreciation Expense (in millions) April 27, 2018 April 28, 2017 2018 2017 2016 Cardiac and Vascular Group $ 15,407 $ 15,192 $ 183 $ 180 $ 172 Minimally Invasive Therapies Group (1) 43,002 49,249 217 358 383 Restorative Therapies Group 15,245 15,441 146 167 135 Diabetes Group 2,900 2,641 29 29 31 Segments 76,554 82,523 575 734 721 Corporate 14,839 17,334 246 203 168 Total $ 91,393 $ 99,857 $ 821 $ 937 $ 889 (1) Assets of $6.3 billion classified as held for sale were included within Minimally Invasive Therapies Group at April 28, 2017 . Geographic Information Net sales are attributed to the country based on the location of the customer taking possession of the products or in which the services are rendered. Geographic property, plant, and equipment are attributed to the country based on the physical location of the assets. The following table presents net sales for fiscal years 2018 , 2017 , and 2016 , and property, plant, and equipment, net at April 27, 2018 and April 28, 2017 for the Company's country of domicile, countries with significant concentrations, and all other countries: Net sales Property, plant, and equipment, net (in millions) 2018 2017 2016 April 27, 2018 April 28, 2017 Ireland $ 85 $ 69 $ 79 $ 149 $ 143 United States 15,875 16,663 16,422 2,927 2,434 Rest of world 13,993 12,978 12,332 1,528 1,784 Total other countries, excluding Ireland 29,868 29,641 28,754 4,455 4,218 Total $ 29,953 $ 29,710 $ 28,833 $ 4,604 $ 4,361 No single customer represented over 10 percent of the Company’s consolidated net sales in fiscal years 2018 , 2017 , or 2016 . |
Guarantor Financial Information
Guarantor Financial Information | 12 Months Ended |
Apr. 27, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Guarantor Financial Information | Guarantor Financial Information Medtronic plc and Medtronic Global Holdings S.C.A. (Medtronic Luxco), a wholly-owned subsidiary guarantor, each have provided full and unconditional guarantees of the obligations of Medtronic, Inc., a wholly-owned subsidiary issuer, under the Senior Notes (Medtronic Senior Notes) and full and unconditional guarantees of the obligations of Covidien International Finance S.A. (CIFSA), a wholly-owned subsidiary issuer, under the Senior Notes (CIFSA Senior Notes). The guarantees of the CIFSA Senior Notes are in addition to the guarantees of the CIFSA Senior Notes by Covidien Ltd. and Covidien Group Holdings Ltd., both of which are wholly-owned subsidiary guarantors of the CIFSA Senior Notes. Effective March 28, 2017, Medtronic plc and Medtronic, Inc. each have provided a full and unconditional guarantee of the obligations of Medtronic Luxco under the Medtronic Luxco Senior Notes. The following is a summary of these guarantees: 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 27, 2018 , April 28, 2017 , and April 29, 2016 , and condensed consolidating balance sheets at April 27, 2018 and April 28, 2017 . 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. The Company has presented the provisional tax impacts related to the Tax Act within the condensed consolidating financial statements for the fiscal year ended April 27, 2018 , at the subsidiary which the Company reasonably expects to be affected by the Tax Act. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. The Company made revisions to its condensed consolidating balance sheets of the guarantees of the Medtronic Senior Notes, Medtronic Luxco Senior Notes and the CIFSA Senior Notes, as previously presented in Note 23 in the Company’s Annual Report on Form 10-K for the year ended April 28, 2017. An approximate $16.0 billion revision was made to decrease the investment in subsidiaries and shareholders' equity balances in the Medtronic, Inc. column for the Medtronic Senior Notes and Medtronic Luxco Senior Notes, as well as an approximate $16.0 billion revision to increase the investment in subsidiaries and shareholders' equity balances in the CIFSA column for the CIFSA Senior Notes. Both revisions were primarily related to an incorrect presentation of an intercompany asset sale. There is no impact to the consolidated financial statements of Medtronic plc. During fiscal year 2018, the Company undertook certain steps to reorganize ownership of various subsidiaries. The transactions were entirely among subsidiaries under the common control of Medtronic. The reorganization has been reflected as of the beginning of the earliest period presented. Consolidating Statement of Comprehensive Income Fiscal Year Ended April 27, 2018 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ 1,198 $ — $ 29,952 $ (1,197 ) $ 29,953 Costs and expenses: Cost of products sold — 959 — 8,884 (788 ) 9,055 Research and development expense — 653 — 1,600 — 2,253 Selling, general, and administrative expense 12 1,329 — 8,633 — 9,974 Amortization of intangible assets — 8 — 1,815 — 1,823 Restructuring charges, net — (7 ) — 37 — 30 Acquisition-related items — 60 — 44 — 104 Certain litigation charges — 24 — 37 — 61 Divestiture-related items — 15 — 99 — 114 Gain on sale of businesses — — — (697 ) — (697 ) Special charge — 80 — — — 80 Other expense (income), net 52 (2,329 ) — 3,190 (408 ) 505 Operating (loss) profit (64 ) 406 — 6,310 (1 ) 6,651 Investment loss — 172 — 55 — 227 Interest income — (353 ) (482 ) (1,582 ) 2,020 (397 ) Interest expense 247 1,897 234 788 (2,020 ) 1,146 Interest expense (income), net 247 1,544 (248 ) (794 ) — 749 Equity in net (income) loss of subsidiaries (3,408 ) (830 ) (3,160 ) — 7,398 — Income (loss) before income taxes 3,097 (480 ) 3,408 7,049 (7,399 ) 5,675 Income tax (benefit) provision (7 ) 41 — 2,546 — 2,580 Net income 3,104 (521 ) 3,408 4,503 (7,399 ) 3,095 Net loss attributable to noncontrolling interests — — — 9 — 9 Net income attributable to Medtronic 3,104 (521 ) 3,408 4,512 (7,399 ) 3,104 Other comprehensive gain (loss), net of tax 1,030 788 1,030 954 (2,772 ) 1,030 Other comprehensive loss attributable to non-controlling interests — — — 9 — 9 Comprehensive income (loss) attributable to Medtronic $ 4,134 $ 267 $ 4,438 $ 5,466 $ (10,171 ) $ 4,134 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 $ — $ 1,199 $ — $ 29,708 $ (1,197 ) $ 29,710 Costs and expenses: Cost of products sold — 932 — 9,152 (793 ) 9,291 Research and development expense — 636 — 1,557 — 2,193 Selling, general, and administrative expense 12 1,163 — 8,536 — 9,711 Amortization of intangible assets — 11 — 1,969 — 1,980 Restructuring charges, net — 114 — 249 — 363 Acquisition-related items — 133 — 87 — 220 Certain litigation charges — — — 300 — 300 Special charge — 100 — — — 100 Other expense (income), net 18 (2,472 ) — 3,099 (423 ) 222 Operating (loss) profit (30 ) 582 — 4,759 19 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 ) (1,712 ) (3,576 ) — 9,451 — Income (loss) before income taxes 4,020 892 4,163 4,959 (9,432 ) 4,602 Income tax (benefit) provision (8 ) (124 ) — 710 — 578 Net income 4,028 1,016 4,163 4,249 (9,432 ) 4,024 Net loss attributable to noncontrolling interests — — — 4 — 4 Net income attributable to Medtronic 4,028 1,016 4,163 4,253 (9,432 ) 4,028 Other comprehensive gain (loss), net of tax (745 ) (340 ) (745 ) (928 ) 2,014 (744 ) Other comprehensive loss attributable to non-controlling interests — — — 3 — 3 Comprehensive income (loss) attributable to Medtronic $ 3,283 $ 676 $ 3,418 $ 3,324 $ (7,418 ) $ 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 $ — $ 1,282 $ — $ 28,832 $ (1,281 ) $ 28,833 Costs and expenses: Cost of products sold — 991 — 9,045 (894 ) 9,142 Research and development expense — 627 — 1,597 — 2,224 Selling, general, and administrative expense 10 991 — 8,468 — 9,469 Amortization of intangible assets — 12 — 1,919 — 1,931 Restructuring charges, net — 17 — 273 — 290 Acquisition-related items — 135 — 148 — 283 Certain litigation charges — — — 26 — 26 Other expense (income), net 109 (1,784 ) — 2,169 (387 ) 107 Operating (loss) profit (119 ) 293 — 5,187 — 5,361 Investment loss — 70 — — — 70 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 (3,673 ) (1,405 ) (2,977 ) — 8,055 — Income (loss) before income taxes 3,529 (41 ) 3,673 5,230 (8,055 ) 4,336 Income tax (benefit) provision (9 ) (279 ) — 1,086 — 798 Net income 3,538 238 3,673 4,144 (8,055 ) 3,538 Other comprehensive gain (loss), net of tax (684 ) (854 ) (684 ) (673 ) 2,211 (684 ) Comprehensive income (loss) $ 2,854 $ (616 ) $ 2,989 $ 3,471 $ (5,844 ) $ 2,854 Condensed Consolidating Balance Sheet April 27, 2018 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 $ — $ 20 $ 1 $ 3,648 $ — $ 3,669 Investments — 76 — 7,482 — 7,558 Accounts receivable, net — — — 5,987 — 5,987 Inventories, net — 165 — 3,539 (125 ) 3,579 Intercompany receivable 37 23,480 — 33,929 (57,446 ) — Other current assets 6 178 — 2,003 — 2,187 Total current assets 43 23,919 1 56,588 (57,571 ) 22,980 Property, plant and equipment, net — 1,426 — 3,178 — 4,604 Goodwill — 1,883 — 37,660 — 39,543 Other intangible assets, net — 12 — 21,711 — 21,723 Tax assets — 385 — 1,080 — 1,465 Investment in subsidiaries 60,381 73,594 61,457 — (195,432 ) — Intercompany loans receivable 3,000 6,519 19,337 34,196 (63,052 ) — Other assets — 223 — 855 — 1,078 Total assets $ 63,424 $ 107,961 $ 80,795 $ 155,268 $ (316,055 ) $ 91,393 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ — $ 1,696 $ 362 $ — $ 2,058 Accounts payable — 381 — 1,247 — 1,628 Intercompany payable — 28,401 5,542 23,503 (57,446 ) — Accrued compensation 3 787 — 1,198 — 1,988 Accrued income taxes — — — 979 — 979 Other accrued expenses 16 359 4 3,052 — 3,431 Total current liabilities 19 29,928 7,242 30,341 (57,446 ) 10,084 Long-term debt — 20,598 844 2,257 — 23,699 Accrued compensation and retirement benefits — 902 — 523 — 1,425 Accrued income taxes 10 531 — 2,510 — 3,051 Intercompany loans payable 12,675 14,339 19,335 16,703 (63,052 ) — Deferred tax liabilities — — — 1,423 — 1,423 Other liabilities — 68 — 821 — 889 Total liabilities 12,704 66,366 27,421 54,578 (120,498 ) 40,571 Shareholders’ equity 50,720 41,595 53,374 100,588 (195,557 ) 50,720 Noncontrolling interests — — — 102 — 102 Total equity 50,720 41,595 53,374 100,690 (195,557 ) 50,822 Total liabilities and equity $ 63,424 $ 107,961 $ 80,795 $ 155,268 $ (316,055 ) $ 91,393 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 — 3,316 (133 ) 3,338 Intercompany receivable 51 16,301 — 30,475 (46,827 ) — Other current assets 10 227 — 1,628 — 1,865 Current assets held for sale — — — 371 — 371 Total current assets 61 16,728 5 55,039 (46,960 ) 24,873 Property, plant and equipment, net — 1,311 — 3,050 — 4,361 Goodwill — 1,883 — 36,632 — 38,515 Other intangible assets, net — 20 — 23,387 — 23,407 Tax assets — 727 — 823 — 1,550 Investment in subsidiaries 55,747 52,300 52,532 — (160,579 ) — Intercompany loans receivable 3,000 6,530 16,114 25,621 (51,265 ) — Other assets — 434 — 798 — 1,232 Noncurrent assets held for sale — — — 5,919 — 5,919 Total assets $ 58,808 $ 79,933 $ 68,651 $ 151,269 $ (258,804 ) $ 99,857 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ 5,000 $ 901 $ 1,619 $ — $ 7,520 Accounts payable — 295 — 1,260 — 1,555 Intercompany payable — 23,380 7,111 16,336 (46,827 ) — Accrued compensation 9 734 — 1,161 — 1,904 Accrued income taxes 13 — — 620 — 633 Other accrued expenses — 361 4 2,253 — 2,618 Current liabilities held for sale — — — 34 — 34 Total current liabilities 22 29,770 8,016 23,283 (46,827 ) 14,264 Long-term debt — 21,782 1,842 2,297 — 25,921 Accrued compensation and retirement benefits — 1,120 — 604 — 1,724 Accrued income taxes 10 1,658 — 737 — 2,405 Intercompany loans payable 8,568 13,109 10,049 19,539 (51,265 ) — Deferred tax liabilities — — — 2,978 — 2,978 Other liabilities — 153 — 1,362 — 1,515 Noncurrent liabilities held for sale — — — 720 — 720 Total liabilities 8,600 67,592 19,907 51,520 (98,092 ) 49,527 Shareholders' equity 50,208 12,341 48,744 99,627 (160,712 ) 50,208 Noncontrolling interests — — — 122 — 122 Total equity 50,208 12,341 48,744 99,749 (160,712 ) 50,330 Total liabilities and equity $ 58,808 $ 79,933 $ 68,651 $ 151,269 $ (258,804 ) $ 99,857 Condensed Consolidating Statement of Cash Flows Fiscal Year Ended April 27, 2018 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 $ 155 $ (1,567 ) $ 249 $ 16,419 $ (10,572 ) $ 4,684 Investing Activities: Acquisitions, net of cash acquired — — — (137 ) — (137 ) Proceeds from sale of businesses — — — 6,058 — 6,058 Additions to property, plant, and equipment — (340 ) — (728 ) — (1,068 ) Purchases of investments — (98 ) (25 ) (3,124 ) 47 (3,200 ) Sales and maturities of investments — 25 — 4,249 (47 ) 4,227 Capital contributions paid — (59 ) (4,200 ) — 4,259 — Other investing activities, net — — — (22 ) — (22 ) Net cash (used in) provided by investing activities — (472 ) (4,225 ) 6,296 4,259 5,858 Financing Activities: Acquisition-related contingent consideration — — — (48 ) — (48 ) Change in current debt obligations, net — — (205 ) (44 ) — (249 ) Repayment of short-term borrowings (maturities greater than 90 days) — — — (45 ) — (45 ) Proceeds from short-term borrowings (maturities greater than 90 days) — — — 1 — 1 Issuance of long-term debt — — — 21 — 21 Payments on long-term debt — (6,166 ) — (1,204 ) — (7,370 ) Dividends to shareholders (2,494 ) — — — — (2,494 ) Issuance of ordinary shares 403 — — — — 403 Repurchase of ordinary shares (2,171 ) — — — — (2,171 ) Net intercompany loan borrowings (repayments) 4,107 8,180 4,177 (16,464 ) — — Intercompany dividends paid — — — (10,572 ) 10,572 — Capital contributions received — — — 4,259 (4,259 ) — Other financing activities — — — (2 ) — (2 ) Net cash (used in) provided by financing activities (155 ) 2,014 3,972 (24,098 ) 6,313 (11,954 ) Effect of exchange rate changes on cash and cash equivalents — — — 114 — 114 Net change in cash and cash equivalents — (25 ) (4 ) (1,269 ) — (1,298 ) Cash and cash equivalents at beginning of period — 45 5 4,917 — 4,967 Cash and cash equivalents at end of period $ — $ 20 $ 1 $ 3,648 $ — $ 3,669 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 Capital contributions paid — (248 ) — — 248 — Other investing activities, net — — — 22 — 22 Net cash (used in) provided by investing activities — (1,347 ) — (472 ) 248 (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 (255 ) (3,048 ) (1,347 ) — — 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 ) (565 ) (297 ) (2,218 ) 639 (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 Capital contributions paid — (11 ) (4,959 ) (4,900 ) 9,870 — Other investing activities, net — — — (14 ) — (14 ) Net cash (used in) provided by investing activities — (871 ) (4,959 ) (1,795 ) 9,870 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 (2,459 ) 4,093 (5,552 ) — — 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 ) (547 ) 4,093 (3,471 ) (9,058 ) (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 Consolidating Statement of Comprehensive Income Fiscal Year Ended April 27, 2018 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ — $ — $ 29,953 $ — $ 29,953 Costs and expenses: Cost of products sold — — — 9,055 — 9,055 Research and development expense — — — 2,253 — 2,253 Selling, general, and administrative expense 12 1 2 9,959 — 9,974 Amortization of intangible assets — — — 1,823 — 1,823 Restructuring charges, net — — — 30 — 30 Acquisition-related items — — — 104 — 104 Certain litigation charges — — — 61 — 61 Divestiture-related items — — — 114 — 114 Gain on sale of businesses — — — (697 ) — (697 ) Special charge — — — 80 — 80 Other expense (income), net 52 1 — 452 — 505 Operating (loss) profit (64 ) (2 ) (2 ) 6,719 — 6,651 Investment loss — — — 227 — 227 Interest income — (60 ) (498 ) (562 ) 723 (397 ) Interest expense 247 83 234 1,305 (723 ) 1,146 Interest expense (income), net 247 23 (264 ) 743 — 749 Equity in net (income) loss of subsidiaries (3,408 ) (4,233 ) (3,146 ) — 10,787 — Income (loss) before income taxes 3,097 4,208 3,408 5,749 (10,787 ) 5,675 Income tax (benefit) provision (7 ) — — 2,587 — 2,580 Net income 3,104 4,208 3,408 3,162 (10,787 ) 3,095 Net loss attributable to noncontrolling interests — — — 9 — 9 Net income attributable to Medtronic 3,104 4,208 3,408 3,171 (10,787 ) 3,104 Other comprehensive gain (loss), net of tax 1,030 228 1,030 1,030 (2,288 ) 1,030 Other comprehensive loss attributable to non-controlling interests — — — 9 — 9 Comprehensive income (loss) attributable to Medtronic $ 4,134 $ 4,436 $ 4,438 $ 4,201 $ (13,075 ) $ 4,134 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 Amortization of intangible assets — — — 1,980 — 1,980 Restructuring charges, net — — — 363 — 363 Acquisition-related items — — — 220 — 220 Certain litigation charges — — — 300 — 300 Special charge — — — 100 — 100 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 ) (3,581 ) (3,575 ) — 11,319 — Income (loss) before income taxes 4,020 3,557 4,163 4,181 (11,319 ) 4,602 Income tax (benefit) provision (8 ) — — 586 — 578 Net income 4,028 3,557 4,163 3,595 (11,319 ) 4,024 Net loss attributable to noncontrolling interests — — — 4 — 4 Net income attributable to Medtronic 4,028 3,557 4,163 3,599 (11,319 ) 4,028 Other comprehensive gain (loss), net of tax (745 ) (324 ) (745 ) (744 ) 1,814 (744 ) Other comprehensive loss attributable to non-controlling interests — — — 3 — 3 Comprehensive income (loss) attributable to Medtronic $ 3,283 $ 3,233 $ 3,418 $ 2,854 $ (9,505 ) $ 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 Amortization of intangible assets — — — 1,931 — 1,931 Restructuring charges, net — — — 290 — 290 Acquisition-related items — — — 283 — 283 Certain litigation charges — — — 26 — 26 Other expense (income), net 109 1 14 (17 ) — 107 Operating (loss) profit (119 ) (2 ) (17 ) 5,499 — 5,361 Investment loss — — — 70 — 70 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 (3,673 ) (2,716 ) (2,990 ) — 9,379 — Income (loss) before income taxes 3,529 3,010 3,673 3,503 (9,379 ) 4,336 Income tax (benefit) provision (9 ) — — 807 — 798 Net income 3,538 3,010 3,673 2,696 (9,379 ) 3,538 Other comprehensive gain (loss), net of tax (684 ) 59 (684 ) (684 ) 1,309 (684 ) Comprehensive income (loss) $ 2,854 $ 3,069 $ 2,989 $ 2,012 $ (8,070 ) $ 2,854 Condensed Consolidating Balance Sheet April 27, 2018 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total ASSETS Current assets: Cash and cash equivalents $ — $ — $ 1 $ 3,668 $ — $ 3,669 Investments — — — 7,558 — 7,558 Accounts receivable, net — — — 5,987 — 5,987 Inventories, net — — — 3,579 — 3,579 Intercompany receivable 37 — 1,343 5,560 (6,940 ) — Other current assets 6 — — 2,181 — 2,187 Total current assets 43 — 1,344 28,533 (6,940 ) 22,980 Property, plant and equipment, net — — — 4,604 — 4,604 Goodwill — — — 39,543 — 39,543 Other intangible assets, net — — — 21,723 — 21,723 Tax assets — — — 1,465 — 1,465 Investment in subsidiaries 60,381 31,144 60,118 — (151,643 ) — Intercompany loans receivable 3,000 1,291 19,337 19,436 (43,064 ) — Other assets — — — 1,078 — 1,078 Total assets $ 63,424 $ 32,435 $ 80,799 $ 116,382 $ (201,647 ) $ 91,393 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ — $ 1,696 $ 362 $ — $ 2,058 Accounts payable — — — 1,628 — 1,628 Intercompany payable — 1,283 5,542 115 (6,940 ) — Accrued compensation 3 — — 1,985 — 1,988 Accrued income taxes — — — 979 — 979 Other accrued expenses 16 21 8 3,386 — 3,431 Total current liabilities 19 1,304 7,246 8,455 (6,940 ) 10,084 Long-term debt — 2,111 844 20,744 — 23,699 Accrued compensation and retirement benefits — — — 1,425 — 1,425 Accrued income taxes 10 — — 3,041 — 3,051 Intercompany loans payable 12,675 100 19,335 10,954 (43,064 ) — Deferred tax liabilities — — — 1,423 — 1,423 Other liabilities — — — 889 — 889 Total liabilities 12,704 3,515 27,425 46,931 (50,004 ) 40,571 Shareholders’ equity 50,720 28,920 53,374 69,349 (151,643 ) 50,720 Noncontrolling interests — — — 102 — 102 Total equity 50,720 28,920 53,374 69,451 (151,643 ) 50,822 Total liabilities and equity $ 63,424 $ 32,435 $ 80,799 $ 116,382 $ (201,647 ) $ 91,393 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 51 — 1,329 7,111 (8,491 ) — Other current assets 10 — — 1,855 — 1,865 Current assets held for sale — — — 371 — 371 Total current assets 61 33 1,334 31,936 (8,491 ) 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 — — — 1,550 — 1,550 Investment in subsidiaries 55,747 50,580 51,208 — (157,535 ) — Intercompany loans receivable 3,000 2,978 16,114 10,149 (32,241 ) — Other assets — — — 1,232 — 1,232 Noncurrent assets held for sale — — — 5,919 — 5,919 Total assets $ 58,808 $ 53,591 $ 68,656 $ 117,069 $ (198,267 ) $ 99,857 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ 1,176 $ 901 $ 5,443 $ — $ 7,520 Accounts payable — — — 1,555 — 1,555 Intercompany payable — 1,269 7,111 111 (8,491 ) — Accrued compensation 9 — — 1,895 — 1,904 Accrued income taxes 13 — — 620 — 633 Other accrued expenses — 23 8 2,587 — 2,618 Current liabilities held for sale — — — 34 — 34 Total current liabilities 22 2,468 8,020 12,245 (8,491 ) 14,264 Long-term debt — 2,133 1,842 21,946 — 25,921 Accrued compensation and retirement benefits — — — 1,724 — 1,724 Accrued income taxes 10 — — 2,395 — 2,405 Intercompany loans payable 8,568 100 10,050 13,523 (32,241 ) — Deferred tax liabilities — — — 2,978 — 2,978 Other liabilities — — — 1,515 — 1,515 Noncurrent liabilities held for sale — — — 720 — 720 Total liabilities 8,600 4,701 19,912 57,046 (40,732 ) 49,527 Shareholders' equity 50,208 48,890 48,744 59,901 (157,535 ) 50,208 Noncontrolling interests — — — 122 — 122 Total equity 50,208 48,890 48,744 60,023 (157,535 ) 50,330 Total liabilities and equity $ 58,808 $ 53,591 $ 68,656 $ 117,069 $ (198,267 ) $ 99,857 Condensed Consolidating Statement of Cash Flows Fiscal Year Ended April 27, 2018 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 $ 155 $ 974 $ 264 $ 4,339 $ (1,048 ) $ 4,684 Investing Activities: Acquisitions, net of cash acquired — — — (137 ) — (137 ) Proceeds from sale of businesses — — — 6,058 — 6,058 Additions to property, plant, and equipment — — — (1,068 ) — (1,068 ) Purchases of investments — — (25 ) (3,200 ) 25 (3,200 ) Sales and maturities of investments — — — 4,252 (25 ) 4,227 Capital contributions paid — (1,557 ) (4,200 ) — 5,757 — Other investing activities, net — — — (22 ) — (22 ) Net cash (used in) provided by investing activities — (1,557 ) (4,225 ) 5,883 5,757 5,858 Financing Activities: Acquisition-related contingent consideration — — — (48 ) — (48 ) Change in current debt obligations, net — — (205 ) (44 ) — (249 ) Repayment of short-term borrowings (maturities greater than 90 days) — — — (45 ) — (45 ) Proceeds from short-term borrowings (maturities greater than 90 days) — — — 1 — 1 Issuance of long-term debt — — — 21 — 21 Payments on long-term debt — (1,150 ) — (6,220 ) — (7,370 ) Dividends to shareholders (2,494 ) — — — — (2,494 ) Issuance of ordinary shares 403 — — — — 403 Repurchase of ordinary shares (2,171 ) — — — — (2,171 ) Net intercompany loan borrowings (repayments) 4,107 1,700 4,162 (9,969 ) — — Intercompany dividend paid — — — (1,048 ) 1,048 — Capital contributions received — — — 5,757 (5,757 ) — Other financing activities — — — (2 ) — (2 ) Net cash (used in) provided by financing activities (155 ) 550 3,957 (11,597 ) (4,709 ) (11,954 ) Effect of exchange rate changes on cash and cash equivalents — — — 114 — 114 Net change in cash and cash equivalents — (33 ) (4 ) (1,261 ) — (1,298 ) Cash and cash equivalents at beginning of period — 33 5 4,929 — 4,967 Cash and cash equivalents at end of period $ — $ — $ 1 $ 3,668 $ — $ 3,669 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 Capital contributions paid — (537 ) — — 537 — Other investing activities, net — — — 22 — 22 Net cash (used in) provided by investing activities — (537 ) — (1,571 ) 537 (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 (1,542 ) (3,048 ) (60 ) — — 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 ) (1,542 ) (297 ) (2,062 ) 1,460 (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 Sales 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 — (720 ) (4,906 ) 2,192 5,679 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 ) |
Schedule II
Schedule II | 12 Months Ended |
Apr. 27, 2018 | |
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 4/27/18 $ 155 $ 52 $ — $ (14 ) (a) $ 193 Year ended 4/28/17 $ 161 $ 39 $ — $ (45 ) (a) $ 155 Year ended 4/29/16 $ 144 $ 49 $ — $ (32 ) (a) $ 161 Inventory reserve: Year ended 4/27/18 $ 443 $ 170 $ — $ (161 ) (b) $ 452 Year ended 4/28/17 $ 426 $ 155 $ 28 $ (166 ) (b) $ 443 Year ended 4/29/16 $ 413 $ 164 $ 10 $ (161 ) (b) $ 426 Deferred tax valuation allowance: Year ended 4/27/18 $ 6,311 $ 434 $ 21 (c) $ (171 ) (d) $ 7,166 $ 571 (e) Year ended 4/28/17 $ 7,032 $ 101 $ 6 (c) $ (524 ) (d) $ 6,311 $ (304 ) (e) Year ended 4/29/16 $ 5,607 $ 1,194 $ 4 (c) $ (88 ) (d) $ 7,032 $ 315 (e) (a) Primarily consists of uncollectible accounts written off, less recoveries. (b) Primarily reflects utilization of the inventory reserve. (c) Reflects the impact from acquisitions. (d) Reflects carryover attribute utilization and expiration. (e) Primarily reflects the effects of currency fluctuations. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 27, 2018 | |
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.) (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, 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 27, 2018 and April 28, 2017 and for each of the three fiscal years ended April 27, 2018 (fiscal year 2018 ), April 28, 2017 (fiscal year 2017 ), and April 29, 2016 (fiscal year 2016 ). Fiscal years 2018 and 2017 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 the availability for use in current operations consistent with the Company's management of its capital structure and liquidity. Certain of the Company’s investments in equity and other securities are long-term, strategic investments in companies that are in various 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. Certain of these investments are publicly traded companies and are 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 statement 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. Securities accounted for under 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. |
Accounts Receivable and Allowance for Doubtful Accounts | The Company grants credit to customers in the normal course of business and maintains an allowance for doubtful accounts for potential credit losses. When evaluating allowances for doubtful accounts, the Company considers various factors, including historical experience and customer-specific information. Uncollectible accounts are written-off against the allowance when it is deemed that a customer account is uncollectible. |
Inventories | Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. The Company reduces the carrying value of inventories for 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 goodwill for impairment annually in the third quarter of the fiscal year and whenever an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is performed at a reporting unit level. There were no changes in reporting units during fiscal year 2018. 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. 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. |
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 . Amortization is recognized within amortization of intangible assets in the consolidated statements of income. 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. 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. Indefinite-lived intangible assets are tested for impairment annually in the third quarter of the fiscal year 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 | 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. The Company records 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 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. The discount rate used is determined at the time of measurement in accordance with accepted valuation methodologies. Changes in projected revenues, probabilities of payment, discount rates, and projected payment dates may result in adjustments to the fair value measurements. Contingent consideration is remeasured each reporting period using Level 3 inputs, and the change in fair value, including accretion for the passage of time, is recognized as income or expense within acquisition-related items in the consolidated statements of income. Contingent consideration payments made soon after the acquisition date are classified as investing activities in the consolidated statements of cash flows. Contingent consideration payments not made soon after the acquisition date that are related to the acquisition date fair value are reported as financing activities in the consolidated statements of cash flows, and amounts paid in excess of the original acquisition date fair value are reported as operating activities in the consolidated statements of cash flows. |
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 derivative financial instruments on a gross basis in the consolidated financial statements. For 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 or a cash flow hedge. 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 and total return 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. 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. |
Self-Insurance | The Company self-insures 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 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. |
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 16 for assumptions used in determining pension and post-retirement benefit costs. The Company utilizes a full yield curve approach methodology 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. The full yield curve approach applies specific spot rates along the yield curve to their underlying projected cash flows in estimation of the cost components. |
Revenue Recognition | The Company sells its products through direct sales representatives and independent distributors. Additionally, a portion of the Company’s revenue is generated from consignment inventory maintained at hospitals or with field representatives. The Company recognizes revenue when control is transferred to a customer. For products sold through direct sales representatives and independent distributors, control is transferred upon shipment or upon delivery, based on the contract terms and legal requirements. For consignment inventory, revenue is recognized at the time the product has been used or implanted. The amount of revenue recognized reflects estimated sales rebates and returns, which 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 increases or decrease of revenue 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 incurred to physically move product from the Company's premises to the customer's premises are recognized in selling, general, and administrative expense in the consolidated statements of income and were $363 million , $370 million , and $316 million in fiscal years 2018 , 2017 , and 2016 , respectively. Other shipping and handling costs incurred to store, move, and prepare products for shipment are recognized in cost of products sold in the consolidated statements of income. |
Research and Development | Research and development costs are expensed when incurred. Research and development costs include costs of other research, engineering, and technical activities 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 as a result of the different treatment of transactions for 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 recognized 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 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, intangible asset impairments, currency transaction and derivative gains and losses, Puerto Rico excise tax, and other income not central to the Company's operations. |
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 expected to vest. The Company estimates pre-vesting forfeitures at the time of grant and revises the estimates in subsequent periods. |
New Accounting Standards | Recently Adopted In March 2016, the Financial Accounting Standards Board (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. Cash flows related to excess tax benefits are to be classified in operating activities in the statement of cash flows rather than financing. 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. The standard also allows an entity to withhold up to the maximum statutory tax rate and classify the awards as equity. The Company prospectively adopted this guidance in the first quarter of fiscal year 2018. The Company has elected to continue to estimate forfeitures. In October 2016, the FASB issued guidance that requires the tax effect of intra-entity transactions, other than sales of inventory, to be recognized when the transaction occurs. Previously, U.S. GAAP prohibited the recognition of current and deferred income taxes associated with an intra-entity asset transfer until an asset had been sold to a third-party. This update requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset, such as equipment or intangibles, when the transfer occurs. The adoption of this guidance is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company has early-adopted this guidance, as permitted, in the first quarter of fiscal year 2018. As a result of this adoption, the Company increased its beginning retained earnings by $296 million . In February 2018, the FASB issued accounting guidance which allows for reclassification from accumulated other comprehensive income (AOCI) to retained earnings for stranded tax effects resulting from the enactment of comprehensive U.S. tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the Tax Act), and can be applied either in the period of adoption or retrospectively to all applicable periods. The Company early-adopted this guidance in the fourth quarter of fiscal year 2018 and reclassified the stranded income tax effects of the Tax Act, increasing the accumulated other comprehensive loss by $203 million with a corresponding increase to retained earnings. The reclassification was primarily comprised of amounts relating to retirement benefit plans and available-for-sale securities. In accordance with its accounting policy, the Company releases other disproportionate income tax effects from accumulated other comprehensive loss once the reason the tax effects were established ceases to exist. In March 2018, the FASB issued accounting guidance which incorporates Securities and Exchange Commission Staff Accounting Bulletin No. 118 into U.S. GAAP, allowing a measurement period, not to exceed one year, to finalize the accounting for the income tax impacts of the Tax Act. This guidance is effective immediately and requires adjustments to provisional amounts that were previously recorded as new information becomes available. The Company has adopted this standard and will continue to evaluate indicators that may give rise to a change in the tax provision as a result of the Tax Act. 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). The Company will adopt this guidance under the modified retrospective method. The Company does not expect the adoption of the amended guidance to have a material impact on the Company's consolidated financial statements. The Company will make additional revenue related disclosures in the footnotes to the Company’s consolidated financial statements upon adoption in the first quarter of fiscal year 2019. 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 effective for the Company beginning in the first quarter of fiscal year 2019. The Company expects a reclassification of approximately $83 million , net of taxes, from accumulated other comprehensive loss to the opening balance of retained earnings upon adoption in the first quarter of fiscal year 2019. 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 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 sheets related to operating leases within its lease portfolio upon adoption of the guidance. |
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-based awards granted under the stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Impact of Revisions | The table below presents the impact of the revision on the Company's previously reported consolidated balance sheets, consolidated statements of equity, and related amounts disclosed in Notes 14, 21, and 22 as follows: April 28, 2017 (in millions) As Reported Adjustments As Revised Tax assets $ 1,509 $ 41 $ 1,550 Total assets 99,816 41 99,857 Accrued compensation 1,860 44 1,904 Current liabilities 14,220 44 14,264 Accrued compensation and retirement benefits 1,641 83 1,724 Total liabilities 49,400 127 49,527 Retained earnings 23,356 (86 ) 23,270 Total shareholders' equity 50,294 (86 ) 50,208 Total equity 50,416 (86 ) 50,330 Total liabilities and equity 99,816 41 99,857 |
Acquisitions and Acquisition-33
Acquisitions and Acquisition-Related Items (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of the Assets Acquired and Liabilities Assumed | The acquisition date fair values of the assets acquired and liabilities acquired were as follows: (in millions) HeartWare International, Inc. All Other Other current assets $ 351 $ 3 Property, plant, and equipment 14 6 Other intangible assets 625 95 Goodwill 481 52 Other assets 84 — Total assets acquired 1,555 156 Current liabilities 143 2 Deferred tax liabilities 6 2 Long-term debt 245 — Other liabilities 89 — Total liabilities assumed 483 4 Net assets acquired $ 1,072 $ 152 |
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) 2018 2017 Beginning Balance $ 246 $ 377 Purchase price contingent consideration 28 28 Contingent consideration payments (72 ) (76 ) Change in fair value of contingent consideration (29 ) (83 ) Ending Balance $ 173 $ 246 |
Schedule of Significant Unobservable Inputs | The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs: (in millions) Fair Value at April 27, 2018 Valuation Technique Unobservable Input Range Discount rate 11.5% - 32.5% Revenue-based payments $ 90 Discounted cash flow Probability of payment 30% - 100% Projected fiscal year of payment 2019 - 2026 Discount rate 5.5% Product development-based payments $ 83 Discounted cash flow Probability of payment 75% - 100% Projected fiscal year of payment 2019 - 2026 |
Divestiture and Divestiture-R34
Divestiture and Divestiture-Related Items (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
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 the consolidated balance sheets: (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. 27, 2018 | |
Enterprise Excellence | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve | The following table summarizes the activity related to the Enterprise Excellence restructuring program for fiscal year 2018 : (in millions) Employee Termination Benefits Associated Costs (1) Total April 28, 2017 $ — $ — $ — Charges 35 61 96 Cash payments (8 ) (59 ) (67 ) April 27, 2018 $ 27 $ 2 $ 29 (1) Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses. For fiscal year 2018, $28 million was recognized within cost of products sold and $33 million was recognized within selling, general, and administrative expense in the consolidated statements of income. |
Cost Synergies | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve | A summary of the restructuring accrual and related activity is presented below: (in millions) Employee Termination Benefits 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 ) Accrual adjustments (18 ) — — (18 ) April 29, 2016 $ 213 $ — $ 37 $ 250 Charges 287 27 54 368 Cash payments (179 ) — (53 ) (232 ) Settled non-cash — (27 ) $ — (27 ) Accrual adjustments (60 ) — (8 ) (68 ) April 28, 2017 $ 261 $ — $ 30 $ 291 Charges 25 — 20 45 Cash payments (132 ) — (32 ) (164 ) Accrual adjustments (38 ) — 4 (34 ) April 27, 2018 $ 116 $ — $ 22 $ 138 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
Investments [Abstract] | |
Investments by Category and Related Balance Sheet Presentation | The following table summarizes the Company's investments by significant investment category and consolidated balance sheet classification at April 27, 2018 : 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 $ 732 $ — $ (26 ) $ 706 $ 706 $ — Marketable equity securities 63 99 — 162 — 162 Total Level 1 795 99 (26 ) 868 706 162 Level 2: Corporate debt securities 4,179 20 (75 ) 4,124 4,124 — U.S. government and agency securities 848 — (24 ) 824 824 — Mortgage-backed securities 725 2 (34 ) 693 693 — Non-U.S. government and agency securities 74 — (1 ) 73 73 — Other asset-backed securities 358 — (2 ) 356 356 — Debt funds 739 — (154 ) 585 585 — Total Level 2 6,923 22 (290 ) 6,655 6,655 — Level 3: Auction rate securities 47 — (3 ) 44 — 44 Total Level 3 47 — (3 ) 44 — 44 Investments measured at net asset value (1) : Debt funds 199 — (2 ) 197 197 — Total available-for-sale securities 7,964 121 (321 ) 7,764 7,558 206 Cost method, equity method, and other investments: Level 3: Cost method, equity method, and other investments 353 — — N/A — 353 Total Level 3: 353 — — N/A — 353 Total cost method, equity method, and other investments 353 — — N/A — 353 Total investments $ 8,317 $ 121 $ (321 ) $ 7,764 $ 7,558 $ 559 (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 category and 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 — Non-U.S. 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: Auction rate securities 47 — (3 ) 44 — 44 Corporate debt securities 1 — — 1 — 1 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. |
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 27, 2018 and April 28, 2017 : April 27, 2018 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized Corporate debt securities $ 2,620 $ (58 ) $ 272 $ (17 ) U.S. government and agency securities 762 (33 ) 374 (17 ) Mortgage-backed securities 442 (15 ) 102 (19 ) Non-U.S. government and agency securities 32 — 36 (1 ) Other asset-backed securities 238 (1 ) 63 (1 ) Debt funds 7 — 775 (156 ) Auction rate securities — — 44 (3 ) Total $ 4,101 $ (107 ) $ 1,666 $ (214 ) April 28, 2017 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate debt securities $ 1,263 $ (19 ) $ 46 $ (4 ) U.S. government and agency securities 896 (15 ) — — Mortgage-backed securities 276 (4 ) 95 (12 ) Other asset-backed securities 127 (1 ) — — Debt funds 173 (1 ) 1,125 (183 ) Auction rate securities — — 44 (3 ) Marketable equity securities 14 (3 ) 2 (1 ) Total $ 2,749 $ (43 ) $ 1,312 $ (203 ) |
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 27, 2018 : 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 Securities Auction Rate Securities April 29, 2016 $ 45 $ 1 $ 44 Settlements — — — April 28, 2017 45 1 44 Settlements (1 ) (1 ) — April 27, 2018 $ 44 $ — $ 44 |
Activity Related to the Company's Investment Portfolio | Activity related to the Company’s investment portfolio was as follows: Fiscal Year 2018 2017 2016 (in millions) Debt (1) Equity (2) Debt (1) Equity (2) Debt (1) Equity (2) Proceeds from sales $ 4,114 $ 113 $ 5,224 $ 132 $ 9,881 $ 42 Gross realized gains 30 15 75 49 36 38 Gross realized losses (25 ) — (56 ) — (53 ) — Recognized impairment losses — (231 ) — (30 ) — (114 ) (1) Includes available-for-sale debt securities and debt funds. (2) Includes marketable equity securities, cost method, equity method, exchange-traded funds, and other investments. |
Available-for-sale Debt Securities Contractual Maturities | The April 27, 2018 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 27, 2018 Due in one year or less $ 887 Due after one year through five years 2,687 Due after five years through ten years 3,138 Due after ten years 108 Total debt securities $ 6,820 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents the changes in the carrying amount of goodwill by segment: (in millions) Cardiac and Vascular Group Minimally Invasive Therapies Group Restorative Therapies Group Diabetes Group Total April 29, 2016 $ 6,243 $ 23,784 $ 9,620 $ 1,853 $ 41,500 Goodwill as a result of acquisitions 457 242 33 — 732 Currency translation (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 Goodwill as a result of acquisitions 6 10 9 27 52 Purchase accounting adjustments 54 — — — 54 Currency translation 80 734 108 — 922 April 27, 2018 $ 6,791 $ 21,155 $ 9,717 $ 1,880 $ 39,543 |
Schedule of Finite-Lived Intangible Assets by Major Class | The following table presents the gross carrying amount and accumulated amortization of intangible assets: April 27, 2018 April 28, 2017 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 16,949 $ (3,139 ) $ 16,862 $ (2,166 ) Purchased technology and patents 11,569 (4,441 ) 11,461 (3,690 ) Trademarks and tradenames 822 (569 ) 772 (461 ) Other 94 (52 ) 77 (42 ) Total $ 29,434 $ (8,201 ) $ 29,172 $ (6,359 ) Indefinite-lived: IPR&D $ 490 $ 594 |
Schedule of Indefinite-Lived Intangible Assets by Major Class | The following table presents the gross carrying amount and accumulated amortization of intangible assets: April 27, 2018 April 28, 2017 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 16,949 $ (3,139 ) $ 16,862 $ (2,166 ) Purchased technology and patents 11,569 (4,441 ) 11,461 (3,690 ) Trademarks and tradenames 822 (569 ) 772 (461 ) Other 94 (52 ) 77 (42 ) Total $ 29,434 $ (8,201 ) $ 29,172 $ (6,359 ) Indefinite-lived: IPR&D $ 490 $ 594 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated aggregate amortization expense by fiscal year based on the current carrying value and remaining estimated useful lives of definite-lived intangible assets at April 27, 2018 , excluding any possible future amortization associated with acquired IPR&D which has not met technological feasibility, is as follows: (in millions) Amortization Expense 2019 $ 1,633 2020 1,583 2021 1,568 2022 1,548 2023 1,481 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Current Debt Obligations | Current debt obligations consisted of the following: (in millions) April 27, 2018 April 28, 2017 Bank borrowings $ 355 $ 396 Capital lease obligations 5 5 Commercial paper 698 901 1.700 percent two-year 2017 senior notes 1,000 — 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 Debt premium, net — 26 Current debt obligations $ 2,058 $ 7,520 |
Schedule of Long-term Debt | Long-term debt consisted of the following: April 27, 2018 April 28, 2017 (in millions, except interest rates) Maturity by Fiscal Year Amount Effective Interest Rate Amount Effective Interest Rate 5.600 percent ten-year 2009 senior notes 2019 — 5.61 400 5.61 1.700 percent two-year 2017 senior notes 2019 — 1.74 1,000 1.74 4.450 percent ten-year 2010 senior notes 2020 — 4.47 766 4.47 Floating rate five-year 2015 senior notes 2020 500 2.92 500 1.98 2.500 percent five-year 2015 senior notes 2020 2,500 2.52 2,500 2.52 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 3.150 percent seven-year 2015 senior notes 2022 2,500 3.18 2,500 3.18 3.125 percent ten-year 2012 senior notes 2022 675 3.16 675 3.16 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 3.35 850 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 4.63 4,150 4.63 Bank borrowings 2020-2022 125 3.99 139 1.28 Debt premium, net 2020-2045 120 — 135 — Capital lease obligations 2020-2025 21 4.46 23 4.81 Interest rate swaps 2021-2022 (6 ) — 40 — Deferred financing costs 2020-2045 (107 ) — (128 ) — Long-term debt $ 23,699 $ 25,921 |
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) 2019 $ 2,058 2020 3,006 2021 1,122 2022 3,275 2023 1,192 Thereafter 15,097 Total debt 25,750 Less: Current portion of debt 2,058 Long-term portion of debt $ 23,692 |
Derivatives and Currency Exch39
Derivatives and Currency Exchange Risk Management (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
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 (losses) in the consolidated statements of income related to derivative instruments, not designated as hedging instruments, for fiscal years 2018 , 2017 , and 2016 are as follows: Fiscal Year (in millions) Classification 2018 2017 2016 Currency exchange rate contracts Other expense, net $ (253 ) $ 54 $ 33 Total return swaps Other expense, net 27 — — Total $ (226 ) $ 54 $ 33 |
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 AOCI related to the effective portion of currency exchange rate contract derivative instruments designated as cash flow hedges for fiscal years 2018 , 2017 , and 2016 were as follows: Fiscal Year 2018 Recognized in AOCI Recognized in Income (in millions) Amount Classification Amount Currency exchange rate contracts $ (404 ) Other expense, net $ (69 ) Fiscal Year 2017 Recognized in AOCI Recognized in Income (in millions) Amount Classification Amount Currency exchange rate contracts $ 342 Other expense, net $ 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 |
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 27, 2018 and April 28, 2017 . 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 designated and do not qualify as hedging instruments, and are further segregated by type of contract within those two categories. April 27, 2018 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 Other current assets $ 37 Other accrued expenses $ 162 Interest rate contracts Other assets 8 Other liabilities 14 Currency exchange rate contracts Other assets 11 Other liabilities 51 Total derivatives designated as hedging instruments $ 56 $ 227 Derivatives not designated as hedging instruments Currency exchange rate contracts Other current assets $ 31 Other accrued expenses $ 25 Total return swaps Other current assets 4 Other accrued expenses — Stock warrants Other assets 21 Other liabilities — Cross currency interest rate contracts Other assets 6 Other liabilities 6 Total derivatives not designated as hedging instruments 62 31 Total derivatives $ 118 $ 258 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 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 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 |
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 27, 2018 April 28, 2017 (in millions) Level 1 Level 2 Level 1 Level 2 Derivative assets $ 79 $ 39 $ 216 $ 46 Derivative liabilities 238 20 93 11 |
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 27, 2018 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Cash Collateral (Received) Posted Securities Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 79 $ (61 ) $ — $ — $ 18 Interest rate contracts 8 (6 ) — — 2 Total return swaps 4 — — — 4 Stock warrants 21 — — — 21 Cross currency interest rate contracts 6 (4 ) — — 2 $ 118 $ (71 ) $ — $ — $ 47 Derivative liabilities: Currency exchange rate contracts $ (238 ) $ 61 $ — $ 74 $ (103 ) Interest rate contracts (14 ) 6 — 2 (6 ) Cross currency interest rate contracts (6 ) 4 — — (2 ) (258 ) 71 — 76 (111 ) Total $ (140 ) $ — $ — $ 76 $ (64 ) April 28, 2017 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Cash Collateral (Received) Posted Securities 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 |
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 27, 2018 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Cash Collateral (Received) Posted Securities Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 79 $ (61 ) $ — $ — $ 18 Interest rate contracts 8 (6 ) — — 2 Total return swaps 4 — — — 4 Stock warrants 21 — — — 21 Cross currency interest rate contracts 6 (4 ) — — 2 $ 118 $ (71 ) $ — $ — $ 47 Derivative liabilities: Currency exchange rate contracts $ (238 ) $ 61 $ — $ 74 $ (103 ) Interest rate contracts (14 ) 6 — 2 (6 ) Cross currency interest rate contracts (6 ) 4 — — (2 ) (258 ) 71 — 76 (111 ) Total $ (140 ) $ — $ — $ 76 $ (64 ) April 28, 2017 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Cash Collateral (Received) Posted Securities 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 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Balances | Inventory balances, net of reserves, were as follows: (in millions) April 27, 2018 April 28, 2017 Finished goods $ 2,407 $ 2,211 Work-in-process 496 458 Raw materials 676 669 Total $ 3,579 $ 3,338 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
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 27, 2018 April 28, 2017 Estimated Useful Lives Land and land improvements $ 187 $ 186 Up to 20 Buildings and leasehold improvements 2,265 2,175 Up to 40 Equipment 6,749 6,435 Generally 3-7, up to 15 Construction in progress 1,058 895 — Property, plant, and equipment 10,259 9,691 Less: Accumulated depreciation (5,655 ) (5,330 ) Property, plant, and equipment, net $ 4,604 $ 4,361 |
Stock Purchase and Award Plans
Stock Purchase and Award Plans (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
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 2018 2017 2016 Weighted average fair value of options granted $ 13.71 $ 14.70 $ 13.72 Assumptions used: Expected life (years) (1) 6.16 6.18 5.94 Risk-free interest rate (2) 2.00 % 1.26 % 1.79 % Volatility (3) 19.51 % 21.07 % 21.00 % Dividend yield (4) 2.19 % 1.97 % 1.96 % (1) 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) 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) 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) 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 | The following table presents the components and classification of stock-based compensation expense recognized for stock options, restricted stock, and ESPP in fiscal years 2018 , 2017 , and 2016 : Fiscal Year (in millions) 2018 2017 2016 Stock options $ 132 $ 157 $ 206 Restricted stock 185 169 148 Employee stock purchase plan 27 22 21 Total stock-based compensation expense $ 344 $ 348 $ 375 Cost of products sold $ 44 $ 49 $ 50 Research and development expense 38 41 37 Selling, general, and administrative expense 242 233 212 Restructuring charges — 2 18 Acquisition-related items 4 23 58 Divestiture-related items 16 — — Total stock-based compensation expense 344 348 375 Income tax benefits (82 ) (98 ) (108 ) Total stock-based compensation expense, net of tax $ 262 $ 250 $ 267 |
Schedule of Stock Options Activity | The following table summarizes all stock option activity, including activity from options assumed or issued as a result of acquisitions, during fiscal year 2018 : Options (in thousands) Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding at April 28, 2017 45,194 $ 62.41 Granted 3,773 83.92 Exercised (6,145 ) 43.72 Expired/Forfeited (1,783 ) 76.93 Outstanding at April 27, 2018 41,039 66.56 5.94 $ 637 Vested and expected to vest at April 27, 2018 23,093 77.30 7.12 115 Exercisable at April 27, 2018 17,136 51.43 4.25 520 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 2018 , 2017 , and 2016 : Fiscal Year (in millions) 2018 2017 2016 Cash proceeds from options exercised $ 250 $ 367 $ 452 Intrinsic value of options exercised 248 403 374 Tax benefit related to options exercised 75 140 131 |
Schedule of Restricted Stock Award Activity | The following table summarizes restricted stock activity, including activity from restricted stock assumed or issued as a result of acquisitions, during fiscal year 2018 : Units in thousands) Wtd. Avg. Grant Price Nonvested at April 28, 2017 8,788 $ 76.49 Granted 2,683 83.88 Vested (2,589 ) 61.73 Forfeited (646 ) 78.90 Nonvested at April 27, 2018 8,236 $ 83.35 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 2018 , 2017 , and 2016 : Fiscal Year (in millions, except per share data) 2018 2017 2016 Weighted-average grant-date fair value per restricted stock $ 83.88 $ 85.07 $ 77.68 Fair value of restricted stock vested 160 131 276 Tax benefit related to restricted stock vested 63 76 76 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Income Taxes, Based on Jurisdiction | The components of income before income taxes, based on tax jurisdiction, are as follows: Fiscal Year (in millions) 2018 2017 2016 U.S. $ (958 ) $ (234 ) $ 333 International 6,633 4,836 4,003 Income before income taxes $ 5,675 $ 4,602 $ 4,336 |
Income Tax Provision | The income tax provision consists of the following: Fiscal Year (in millions) 2018 2017 2016 Current tax expense: U.S. $ 2,899 $ 614 $ 440 International 796 840 835 Total current tax expense 3,695 1,454 1,275 Deferred tax expense (benefit): U.S. 45 (399 ) (67 ) International (1,160 ) (477 ) (410 ) Net deferred tax benefit (1,115 ) (876 ) (477 ) Income tax provision $ 2,580 $ 578 $ 798 |
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 27, 2018 April 28, 2017 Deferred tax assets: Net operating loss, capital loss, and credit carryforwards $ 7,463 $ 6,800 Other accrued liabilities 410 658 Accrued compensation 209 427 Pension and post-retirement benefits 256 456 Stock-based compensation 190 278 Other 332 349 Inventory 207 277 Federal and state benefit on uncertain tax positions 67 191 Unrealized loss on available-for-sale securities and derivative financial instruments 93 — Gross deferred tax assets 9,227 9,436 Valuation allowance (7,166 ) (6,311 ) Total deferred tax assets 2,061 3,125 Deferred tax liabilities: Intangible assets (1,697 ) (4,943 ) Realized loss on derivative financial instruments (69 ) (112 ) Other (143 ) (74 ) Accumulated depreciation (38 ) (149 ) Unrealized gain on available-for-sale securities and derivative financial instruments — (18 ) Outside basis difference of subsidiaries (131 ) (112 ) Total deferred tax liabilities (2,078 ) (5,408 ) Prepaid income taxes 406 475 Income tax receivables 315 218 Tax assets (liabilities), net $ 704 $ (1,590 ) Reported as (after valuation allowance and jurisdictional netting): Other current assets $ 662 $ 545 Tax assets 1,465 1,550 Deferred tax liabilities (1,423 ) (2,978 ) Noncurrent liabilities held for sale — (707 ) Tax assets (liabilities), net $ 704 $ (1,590 ) |
Schedule of Effective Income Tax Rate Reconciliation | The Company’s effective income tax rate varied from the U.S. federal statutory tax rate as follows: Fiscal Year 2018 2017 2016 U.S. federal statutory tax rate 30.5 % 35.0 % 35.0 % Increase (decrease) in tax rate resulting from: U.S. state taxes, net of federal tax benefit 0.8 1.0 0.9 Research and development credit (0.8 ) (0.9 ) (1.2 ) Domestic production activities (0.1 ) (0.4 ) (0.3 ) International (18.8 ) (27.1 ) (23.4 ) Puerto Rico Excise Tax (1.1 ) (1.5 ) (1.6 ) Impact of adjustments (1) (8.5 ) 5.7 11.4 U.S. Tax Reform 43.0 — — Valuation allowance release (0.1 ) (1.0 ) (0.9 ) Stock based compensation (1.0 ) — — Other, net 1.6 1.8 (1.5 ) Effective tax rate 45.5 % 12.6 % 18.4 % (1) Adjustments include the impact of restructuring charges, net, acquisition- and divestiture-related items, certain litigation charges, special charge, debt redemption premium, inventory step-up, loss on previously held forward starting interest rate swaps, interest expense, net, 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 2018 , 2017 , and 2016 is as follows: Fiscal Year (in millions) 2018 2017 2016 Gross unrecognized tax benefits at beginning of fiscal year $ 1,896 $ 2,703 $ 2,860 Gross increases: Prior year tax positions 13 147 36 Current year tax positions 63 75 202 Acquisitions — 4 — Gross decreases: Prior year tax positions (120 ) (538 ) (116 ) Settlements (80 ) (467 ) (275 ) Statute of limitation lapses (45 ) (28 ) (4 ) Gross unrecognized tax benefits at end of fiscal year 1,727 1,896 2,703 Cash advance paid to taxing authorities (859 ) — (384 ) Gross unrecognized tax benefits at end of fiscal year, net of cash advance $ 868 $ 1,896 $ 2,319 |
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 1998 Brazil 2013 Canada 2010 China 2009 Costa Rica 2014 Dominican Republic 2013 Germany 2010 India 2002 Ireland 2012 Israel 2010 Italy 2005 Japan 2015 Luxembourg 2013 Mexico 2005 Puerto Rico 2011 Singapore 2013 Switzerland 2012 United Kingdom 2016 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
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) 2018 2017 2016 Numerator: Net income attributable to ordinary shareholders $ 3,104 $ 4,028 $ 3,538 Denominator: Basic – weighted average shares outstanding 1,356.7 1,378.9 1,409.6 Effect of dilutive securities: Employee stock options 7.9 9.0 12.2 Employee restricted stock units 3.3 3.4 4.0 Other 0.3 0.1 0.1 Diluted – weighted average shares outstanding 1,368.2 1,391.4 1,425.9 Basic earnings per share $ 2.29 $ 2.92 $ 2.51 Diluted earnings per share $ 2.27 $ 2.89 $ 2.48 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
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) 2018 2017 2018 2017 Accumulated benefit obligation at end of year: $ 2,943 $ 2,879 $ 1,580 $ 1,518 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 3,232 $ 3,048 $ 1,734 $ 1,535 Service cost 116 117 67 70 Interest cost 117 109 28 26 Employee contributions — — 12 15 Plan curtailments and settlements (168 ) — (8 ) 6 Actuarial (gain) loss 12 (22 ) (74 ) 182 Benefits paid (107 ) (80 ) (51 ) (43 ) Special termination benefits — 60 — — Currency exchange rate changes and other — — 146 (57 ) Divestiture — — (63 ) — Projected benefit obligation at end of year $ 3,202 $ 3,232 $ 1,791 $ 1,734 Change in plan assets: Fair value of plan assets at beginning of year $ 2,479 $ 2,138 $ 1,235 $ 1,113 Actual return on plan assets 243 238 67 109 Employer contributions 215 183 90 76 Employee contributions — — 13 15 Plan settlements (168 ) — (4 ) (1 ) Benefits paid (108 ) (80 ) (51 ) (43 ) Currency exchange rate changes and other — — 108 (34 ) Divestiture — — (54 ) — Fair value of plan assets at end of year $ 2,661 $ 2,479 $ 1,404 $ 1,235 Funded status at end of year: Fair value of plan assets $ 2,661 $ 2,479 $ 1,404 $ 1,235 Benefit obligations 3,202 3,232 1,791 1,734 Underfunded status of the plans (541 ) (753 ) (387 ) (499 ) Recognized liability $ (541 ) $ (753 ) $ (387 ) $ (499 ) Amounts recognized on the consolidated balance sheets consist of: Non-current assets $ — $ — $ 16 $ 5 Current liabilities (17 ) (13 ) (8 ) (7 ) Non-current liabilities (524 ) (740 ) (395 ) (497 ) Recognized liability $ (541 ) $ (753 ) $ (387 ) $ (499 ) Amounts recognized in accumulated other comprehensive loss: Prior service cost (benefit) $ 2 $ 3 $ (9 ) $ (6 ) Net actuarial loss 1,088 1,212 380 450 Ending balance $ 1,090 $ 1,215 $ 371 $ 444 |
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) 2018 2017 Accumulated benefit obligation $ 4,110 $ 4,188 Projected benefit obligation 4,282 4,677 Plan assets at fair value 3,472 3,454 |
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) 2018 2017 Projected benefit obligation $ 4,736 $ 4,903 Plan assets at fair value 3,793 3,646 |
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) 2018 2017 2016 2018 2017 2016 Service cost $ 116 $ 117 $ 120 $ 67 $ 70 $ 81 Interest cost 117 109 122 28 26 31 Expected return on plan assets (205 ) (195 ) (180 ) (53 ) (48 ) (48 ) Amortization of prior service cost 1 1 — — (1 ) — Amortization of net actuarial loss 82 88 98 18 17 20 Settlement loss (gain) 16 — (1 ) — — (10 ) Special termination benefits — 60 — — — — Net periodic benefit cost $ 127 $ 180 $ 159 $ 60 $ 64 $ 74 |
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 2018 are as follows: (in millions) U.S. Pension Benefits Non-U.S. Pension Benefits Net actuarial gain $ (27 ) $ (88 ) Amortization of prior service cost (1 ) — Amortization of net actuarial loss (82 ) (18 ) Prior service cost — (4 ) Effect of exchange rates — 37 Settlement loss (17 ) — Total recognized in accumulated other comprehensive loss $ (127 ) $ (73 ) Total recognized in net periodic benefit cost and accumulated other comprehensive loss $ — $ (13 ) |
Schedule of Assumptions Used | The actuarial assumptions are as follows: U.S. Pension Benefits Non-U.S. Pension Benefits Fiscal Year Fiscal Year 2018 2017 2016 2018 2017 2016 Critical assumptions – projected benefit obligation: Discount rate 4.20% - 4.35% 3.70% - 4.30% 3.60% - 4.30% 0.70% - 11.00% 0.45% - 11.40% 0.25% - 10.20% Rate of compensation increase 3.90 % 3.90 % 3.90 % 2.88 % 2.89 % 2.83 % Critical assumptions – net periodic benefit cost: Discount rate – benefit obligation 4.00% - 4.30% 3.55% - 4.30% 4.20% - 4.80% 0.45% - 11.40% 0.25% - 10.20% 0.80% - 9.00% Discount rate – service cost 3.70% - 4.45% 3.60% - 4.45% 4.20% - 4.80% 0.20% - 11.40% 0.05% - 10.20% 0.80% - 9.00% Discount rate – interest cost 3.45% - 3.80% 2.90% - 3.80% 4.20% - 4.80% 0.45% - 11.40% 0.30% - 10.20% 0.80% - 9.00% Expected return on plan assets 7.90 % 8.20 % 8.20 % 4.20 % 4.45 % 4.35 % Rate of compensation increase 3.90 % 3.90 % 3.90 % 2.89 % 2.83 % 2.92 % |
Schedule of Allocation of Plan Assets | The Company’s U.S. plans target asset allocations at April 27, 2018 , compared to the U.S. plans actual asset allocations at April 27, 2018 and April 28, 2017 by asset category, are as follows: U.S. Plans Target Allocation Actual Allocation April 27, 2018 April 27, 2018 April 28, 2017 Asset Category: Equity securities 49 % 49 % 45 % Debt securities 32 32 37 Other 19 19 18 Total 100 % 100 % 100 % |
Fair Value Measurements, Retirement Benefit Plan Assets | Non-U.S. Pension Benefits Fair Value at Fair Value Measurements Using Inputs Considered as Investments Measured at Net Asset Value (in millions) April 27, 2018 Level 1 Level 2 Level 3 Registered investment companies $ 1,362 $ — $ — $ — $ 1,362 Insurance contracts 42 — — 42 — $ 1,404 $ — $ — $ 42 $ 1,362 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 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 27, 2018 and April 28, 2017. U.S. Pension Benefits Fair Value at Fair Value Measurements Using Inputs Considered as Investments Measured at Net Asset Value (in millions) April 27, 2018 Level 1 Level 2 Level 3 Short-term investments $ 181 $ 181 $ — $ — $ — U.S. government securities 181 181 — — — Corporate debt securities 142 — 142 — — Equity commingled trusts 1,322 — — — 1,322 Fixed income commingled trusts 298 — — — 298 Partnership units 537 — — 537 — $ 2,661 $ 362 $ 142 $ 537 $ 1,620 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, Retirement Benefit Plan Assets, Unobservable Input Reconciliation | The following tables provide a reconciliation of the beginning and ending balances of U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3): (in millions) Partnership Units April 28, 2017 $ 468 Total realized losses (42 ) Total unrealized gains 141 Purchases and sales, net (30 ) April 27, 2018 $ 537 (in millions) Partnership Units April 29, 2016 $ 462 Total realized gains 25 Total unrealized gains 28 Purchases and sales, net (47 ) April 28, 2017 $ 468 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) Insurance Contracts April 28, 2017 $ 44 Total unrealized gains 2 Purchases and sales, net (7 ) Currency exchange rate changes 3 April 27, 2018 $ 42 (in millions) Insurance Contracts April 29, 2016 $ 76 Total unrealized gains 2 Purchases and sales, net (31 ) Currency exchange rate changes (3 ) April 28, 2017 $ 44 |
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 2019 $ 106 $ 49 2020 115 45 2021 123 48 2022 133 51 2023 143 58 2024 – 2028 890 323 Total $ 1,510 $ 574 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
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 27, 2018 are: (in millions) Fiscal Year Capitalized Leases Operating Leases 2019 $ 5 $ 234 2020 5 182 2021 4 133 2022 3 87 2023 3 43 Thereafter 6 74 Total minimum lease payments $ 26 $ 753 Less amounts representing interest (5 ) N/A Present value of net minimum lease payments $ 21 N/A |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
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 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 ) Other comprehensive (loss) income before reclassifications (95 ) 1,218 100 (272 ) 951 Reclassifications (8 ) (34 ) 67 54 79 Other comprehensive (loss) income (103 ) 1,184 167 (218 ) 1,030 Cumulative effect of change in accounting principle (1) (22 ) — (155 ) (26 ) (203 ) April 27, 2018 $ (194 ) $ (268 ) $ (1,117 ) $ (207 ) $ (1,786 ) (1) See Note 1 to the consolidated financial statements for discussion regarding the adoption of accounting standards during fiscal year 2018. |
Quarterly Financial Data (una48
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
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 2018 $ 7,390 $ 7,050 $ 7,369 $ 8,144 $ 29,953 2017 7,166 7,345 7,283 7,916 29,710 Gross profit 2018 $ 5,041 $ 4,930 $ 5,178 $ 5,749 $ 20,898 2017 4,905 5,019 5,015 5,480 20,419 Net income (loss) 2018 $ 1,009 $ 2,013 $ (1,392 ) $ 1,465 $ 3,095 2017 929 1,111 820 1,164 4,024 Net income (loss) attributable to Medtronic 2018 $ 1,016 $ 2,017 $ (1,389 ) $ 1,460 $ 3,104 2017 929 1,115 821 1,163 4,028 Basic earnings (loss) per share 2018 $ 0.75 $ 1.49 $ (1.03 ) $ 1.08 $ 2.29 2017 0.67 0.81 0.60 0.85 2.92 Diluted earnings (loss) per share 2018 $ 0.74 $ 1.48 $ (1.03 ) $ 1.07 $ 2.27 2017 0.66 0.80 0.59 0.84 2.89 |
Segment and Geographic Inform49
Segment and Geographic Information (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Reportable Segment | The following tables present reconciliations of financial information from the segments to the applicable line items in the Company's consolidated financial statements: Net Sales Fiscal Year (in millions) 2018 2017 2016 Cardiac and Vascular Group $ 11,354 $ 10,498 $ 10,196 Minimally Invasive Therapies Group 8,716 9,919 9,563 Restorative Therapies Group 7,743 7,366 7,210 Diabetes Group 2,140 1,927 1,864 Total $ 29,953 $ 29,710 $ 28,833 |
Reconciliation of Income Before Provision for Income Taxes from Segments to Consolidated | Segment EBITA Fiscal Year (in millions) 2018 2017 2016 Cardiac and Vascular Group $ 4,460 $ 4,134 $ 3,986 Minimally Invasive Therapies Group 3,346 3,434 3,373 Restorative Therapies Group 3,058 2,868 2,671 Diabetes Group 634 690 667 Segment EBITA 11,498 11,126 10,697 Interest expense, net (749 ) (728 ) (955 ) Amortization of intangible assets (1,823 ) (1,980 ) (1,931 ) Corporate (1,437 ) (1,232 ) (1,464 ) Centralized distribution costs (1,936 ) (1,543 ) (1,177 ) Restructuring and associated costs (107 ) (373 ) (299 ) Acquisition-related items (132 ) (230 ) (283 ) Certain litigation charges (61 ) (300 ) (26 ) Divestiture-related items (115 ) — — Gain on sale of businesses 697 — — Special charge (80 ) (100 ) — IPR&D impairment (46 ) — — Hurricane Maria (34 ) — — Impact of inventory step-up — (38 ) (226 ) Income Before Income Taxes $ 5,675 $ 4,602 $ 4,336 |
Reconciliation of Assets and Depreciation Expense from Segments to Consolidated | Total Assets and Depreciation Expense Total Assets Depreciation Expense (in millions) April 27, 2018 April 28, 2017 2018 2017 2016 Cardiac and Vascular Group $ 15,407 $ 15,192 $ 183 $ 180 $ 172 Minimally Invasive Therapies Group (1) 43,002 49,249 217 358 383 Restorative Therapies Group 15,245 15,441 146 167 135 Diabetes Group 2,900 2,641 29 29 31 Segments 76,554 82,523 575 734 721 Corporate 14,839 17,334 246 203 168 Total $ 91,393 $ 99,857 $ 821 $ 937 $ 889 (1) Assets of $6.3 billion classified as held for sale were included within Minimally Invasive Therapies Group at April 28, 2017 . |
Schedule of Net Sales to External Customers and Property, Plant, and Equipment, Net, by Geographical Region | The following table presents net sales for fiscal years 2018 , 2017 , and 2016 , and property, plant, and equipment, net at April 27, 2018 and April 28, 2017 for the Company's country of domicile, countries with significant concentrations, and all other countries: Net sales Property, plant, and equipment, net (in millions) 2018 2017 2016 April 27, 2018 April 28, 2017 Ireland $ 85 $ 69 $ 79 $ 149 $ 143 United States 15,875 16,663 16,422 2,927 2,434 Rest of world 13,993 12,978 12,332 1,528 1,784 Total other countries, excluding Ireland 29,868 29,641 28,754 4,455 4,218 Total $ 29,953 $ 29,710 $ 28,833 $ 4,604 $ 4,361 |
Guarantor Financial Informati50
Guarantor Financial Information (Tables) | 12 Months Ended |
Apr. 27, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Consolidating Statement of Comprehensive Income | Consolidating Statement of Comprehensive Income Fiscal Year Ended April 27, 2018 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ 1,198 $ — $ 29,952 $ (1,197 ) $ 29,953 Costs and expenses: Cost of products sold — 959 — 8,884 (788 ) 9,055 Research and development expense — 653 — 1,600 — 2,253 Selling, general, and administrative expense 12 1,329 — 8,633 — 9,974 Amortization of intangible assets — 8 — 1,815 — 1,823 Restructuring charges, net — (7 ) — 37 — 30 Acquisition-related items — 60 — 44 — 104 Certain litigation charges — 24 — 37 — 61 Divestiture-related items — 15 — 99 — 114 Gain on sale of businesses — — — (697 ) — (697 ) Special charge — 80 — — — 80 Other expense (income), net 52 (2,329 ) — 3,190 (408 ) 505 Operating (loss) profit (64 ) 406 — 6,310 (1 ) 6,651 Investment loss — 172 — 55 — 227 Interest income — (353 ) (482 ) (1,582 ) 2,020 (397 ) Interest expense 247 1,897 234 788 (2,020 ) 1,146 Interest expense (income), net 247 1,544 (248 ) (794 ) — 749 Equity in net (income) loss of subsidiaries (3,408 ) (830 ) (3,160 ) — 7,398 — Income (loss) before income taxes 3,097 (480 ) 3,408 7,049 (7,399 ) 5,675 Income tax (benefit) provision (7 ) 41 — 2,546 — 2,580 Net income 3,104 (521 ) 3,408 4,503 (7,399 ) 3,095 Net loss attributable to noncontrolling interests — — — 9 — 9 Net income attributable to Medtronic 3,104 (521 ) 3,408 4,512 (7,399 ) 3,104 Other comprehensive gain (loss), net of tax 1,030 788 1,030 954 (2,772 ) 1,030 Other comprehensive loss attributable to non-controlling interests — — — 9 — 9 Comprehensive income (loss) attributable to Medtronic $ 4,134 $ 267 $ 4,438 $ 5,466 $ (10,171 ) $ 4,134 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 $ — $ 1,199 $ — $ 29,708 $ (1,197 ) $ 29,710 Costs and expenses: Cost of products sold — 932 — 9,152 (793 ) 9,291 Research and development expense — 636 — 1,557 — 2,193 Selling, general, and administrative expense 12 1,163 — 8,536 — 9,711 Amortization of intangible assets — 11 — 1,969 — 1,980 Restructuring charges, net — 114 — 249 — 363 Acquisition-related items — 133 — 87 — 220 Certain litigation charges — — — 300 — 300 Special charge — 100 — — — 100 Other expense (income), net 18 (2,472 ) — 3,099 (423 ) 222 Operating (loss) profit (30 ) 582 — 4,759 19 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 ) (1,712 ) (3,576 ) — 9,451 — Income (loss) before income taxes 4,020 892 4,163 4,959 (9,432 ) 4,602 Income tax (benefit) provision (8 ) (124 ) — 710 — 578 Net income 4,028 1,016 4,163 4,249 (9,432 ) 4,024 Net loss attributable to noncontrolling interests — — — 4 — 4 Net income attributable to Medtronic 4,028 1,016 4,163 4,253 (9,432 ) 4,028 Other comprehensive gain (loss), net of tax (745 ) (340 ) (745 ) (928 ) 2,014 (744 ) Other comprehensive loss attributable to non-controlling interests — — — 3 — 3 Comprehensive income (loss) attributable to Medtronic $ 3,283 $ 676 $ 3,418 $ 3,324 $ (7,418 ) $ 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 $ — $ 1,282 $ — $ 28,832 $ (1,281 ) $ 28,833 Costs and expenses: Cost of products sold — 991 — 9,045 (894 ) 9,142 Research and development expense — 627 — 1,597 — 2,224 Selling, general, and administrative expense 10 991 — 8,468 — 9,469 Amortization of intangible assets — 12 — 1,919 — 1,931 Restructuring charges, net — 17 — 273 — 290 Acquisition-related items — 135 — 148 — 283 Certain litigation charges — — — 26 — 26 Other expense (income), net 109 (1,784 ) — 2,169 (387 ) 107 Operating (loss) profit (119 ) 293 — 5,187 — 5,361 Investment loss — 70 — — — 70 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 (3,673 ) (1,405 ) (2,977 ) — 8,055 — Income (loss) before income taxes 3,529 (41 ) 3,673 5,230 (8,055 ) 4,336 Income tax (benefit) provision (9 ) (279 ) — 1,086 — 798 Net income 3,538 238 3,673 4,144 (8,055 ) 3,538 Other comprehensive gain (loss), net of tax (684 ) (854 ) (684 ) (673 ) 2,211 (684 ) Comprehensive income (loss) $ 2,854 $ (616 ) $ 2,989 $ 3,471 $ (5,844 ) $ 2,854 Consolidating Statement of Comprehensive Income Fiscal Year Ended April 27, 2018 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ — $ — $ 29,953 $ — $ 29,953 Costs and expenses: Cost of products sold — — — 9,055 — 9,055 Research and development expense — — — 2,253 — 2,253 Selling, general, and administrative expense 12 1 2 9,959 — 9,974 Amortization of intangible assets — — — 1,823 — 1,823 Restructuring charges, net — — — 30 — 30 Acquisition-related items — — — 104 — 104 Certain litigation charges — — — 61 — 61 Divestiture-related items — — — 114 — 114 Gain on sale of businesses — — — (697 ) — (697 ) Special charge — — — 80 — 80 Other expense (income), net 52 1 — 452 — 505 Operating (loss) profit (64 ) (2 ) (2 ) 6,719 — 6,651 Investment loss — — — 227 — 227 Interest income — (60 ) (498 ) (562 ) 723 (397 ) Interest expense 247 83 234 1,305 (723 ) 1,146 Interest expense (income), net 247 23 (264 ) 743 — 749 Equity in net (income) loss of subsidiaries (3,408 ) (4,233 ) (3,146 ) — 10,787 — Income (loss) before income taxes 3,097 4,208 3,408 5,749 (10,787 ) 5,675 Income tax (benefit) provision (7 ) — — 2,587 — 2,580 Net income 3,104 4,208 3,408 3,162 (10,787 ) 3,095 Net loss attributable to noncontrolling interests — — — 9 — 9 Net income attributable to Medtronic 3,104 4,208 3,408 3,171 (10,787 ) 3,104 Other comprehensive gain (loss), net of tax 1,030 228 1,030 1,030 (2,288 ) 1,030 Other comprehensive loss attributable to non-controlling interests — — — 9 — 9 Comprehensive income (loss) attributable to Medtronic $ 4,134 $ 4,436 $ 4,438 $ 4,201 $ (13,075 ) $ 4,134 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 Amortization of intangible assets — — — 1,980 — 1,980 Restructuring charges, net — — — 363 — 363 Acquisition-related items — — — 220 — 220 Certain litigation charges — — — 300 — 300 Special charge — — — 100 — 100 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 ) (3,581 ) (3,575 ) — 11,319 — Income (loss) before income taxes 4,020 3,557 4,163 4,181 (11,319 ) 4,602 Income tax (benefit) provision (8 ) — — 586 — 578 Net income 4,028 3,557 4,163 3,595 (11,319 ) 4,024 Net loss attributable to noncontrolling interests — — — 4 — 4 Net income attributable to Medtronic 4,028 3,557 4,163 3,599 (11,319 ) 4,028 Other comprehensive gain (loss), net of tax (745 ) (324 ) (745 ) (744 ) 1,814 (744 ) Other comprehensive loss attributable to non-controlling interests — — — 3 — 3 Comprehensive income (loss) attributable to Medtronic $ 3,283 $ 3,233 $ 3,418 $ 2,854 $ (9,505 ) $ 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 Amortization of intangible assets — — — 1,931 — 1,931 Restructuring charges, net — — — 290 — 290 Acquisition-related items — — — 283 — 283 Certain litigation charges — — — 26 — 26 Other expense (income), net 109 1 14 (17 ) — 107 Operating (loss) profit (119 ) (2 ) (17 ) 5,499 — 5,361 Investment loss — — — 70 — 70 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 (3,673 ) (2,716 ) (2,990 ) — 9,379 — Income (loss) before income taxes 3,529 3,010 3,673 3,503 (9,379 ) 4,336 Income tax (benefit) provision (9 ) — — 807 — 798 Net income 3,538 3,010 3,673 2,696 (9,379 ) 3,538 Other comprehensive gain (loss), net of tax (684 ) 59 (684 ) (684 ) 1,309 (684 ) Comprehensive income (loss) $ 2,854 $ 3,069 $ 2,989 $ 2,012 $ (8,070 ) $ 2,854 |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet April 27, 2018 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 $ — $ 20 $ 1 $ 3,648 $ — $ 3,669 Investments — 76 — 7,482 — 7,558 Accounts receivable, net — — — 5,987 — 5,987 Inventories, net — 165 — 3,539 (125 ) 3,579 Intercompany receivable 37 23,480 — 33,929 (57,446 ) — Other current assets 6 178 — 2,003 — 2,187 Total current assets 43 23,919 1 56,588 (57,571 ) 22,980 Property, plant and equipment, net — 1,426 — 3,178 — 4,604 Goodwill — 1,883 — 37,660 — 39,543 Other intangible assets, net — 12 — 21,711 — 21,723 Tax assets — 385 — 1,080 — 1,465 Investment in subsidiaries 60,381 73,594 61,457 — (195,432 ) — Intercompany loans receivable 3,000 6,519 19,337 34,196 (63,052 ) — Other assets — 223 — 855 — 1,078 Total assets $ 63,424 $ 107,961 $ 80,795 $ 155,268 $ (316,055 ) $ 91,393 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ — $ 1,696 $ 362 $ — $ 2,058 Accounts payable — 381 — 1,247 — 1,628 Intercompany payable — 28,401 5,542 23,503 (57,446 ) — Accrued compensation 3 787 — 1,198 — 1,988 Accrued income taxes — — — 979 — 979 Other accrued expenses 16 359 4 3,052 — 3,431 Total current liabilities 19 29,928 7,242 30,341 (57,446 ) 10,084 Long-term debt — 20,598 844 2,257 — 23,699 Accrued compensation and retirement benefits — 902 — 523 — 1,425 Accrued income taxes 10 531 — 2,510 — 3,051 Intercompany loans payable 12,675 14,339 19,335 16,703 (63,052 ) — Deferred tax liabilities — — — 1,423 — 1,423 Other liabilities — 68 — 821 — 889 Total liabilities 12,704 66,366 27,421 54,578 (120,498 ) 40,571 Shareholders’ equity 50,720 41,595 53,374 100,588 (195,557 ) 50,720 Noncontrolling interests — — — 102 — 102 Total equity 50,720 41,595 53,374 100,690 (195,557 ) 50,822 Total liabilities and equity $ 63,424 $ 107,961 $ 80,795 $ 155,268 $ (316,055 ) $ 91,393 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 — 3,316 (133 ) 3,338 Intercompany receivable 51 16,301 — 30,475 (46,827 ) — Other current assets 10 227 — 1,628 — 1,865 Current assets held for sale — — — 371 — 371 Total current assets 61 16,728 5 55,039 (46,960 ) 24,873 Property, plant and equipment, net — 1,311 — 3,050 — 4,361 Goodwill — 1,883 — 36,632 — 38,515 Other intangible assets, net — 20 — 23,387 — 23,407 Tax assets — 727 — 823 — 1,550 Investment in subsidiaries 55,747 52,300 52,532 — (160,579 ) — Intercompany loans receivable 3,000 6,530 16,114 25,621 (51,265 ) — Other assets — 434 — 798 — 1,232 Noncurrent assets held for sale — — — 5,919 — 5,919 Total assets $ 58,808 $ 79,933 $ 68,651 $ 151,269 $ (258,804 ) $ 99,857 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ 5,000 $ 901 $ 1,619 $ — $ 7,520 Accounts payable — 295 — 1,260 — 1,555 Intercompany payable — 23,380 7,111 16,336 (46,827 ) — Accrued compensation 9 734 — 1,161 — 1,904 Accrued income taxes 13 — — 620 — 633 Other accrued expenses — 361 4 2,253 — 2,618 Current liabilities held for sale — — — 34 — 34 Total current liabilities 22 29,770 8,016 23,283 (46,827 ) 14,264 Long-term debt — 21,782 1,842 2,297 — 25,921 Accrued compensation and retirement benefits — 1,120 — 604 — 1,724 Accrued income taxes 10 1,658 — 737 — 2,405 Intercompany loans payable 8,568 13,109 10,049 19,539 (51,265 ) — Deferred tax liabilities — — — 2,978 — 2,978 Other liabilities — 153 — 1,362 — 1,515 Noncurrent liabilities held for sale — — — 720 — 720 Total liabilities 8,600 67,592 19,907 51,520 (98,092 ) 49,527 Shareholders' equity 50,208 12,341 48,744 99,627 (160,712 ) 50,208 Noncontrolling interests — — — 122 — 122 Total equity 50,208 12,341 48,744 99,749 (160,712 ) 50,330 Total liabilities and equity $ 58,808 $ 79,933 $ 68,651 $ 151,269 $ (258,804 ) $ 99,857 Condensed Consolidating Balance Sheet April 27, 2018 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total ASSETS Current assets: Cash and cash equivalents $ — $ — $ 1 $ 3,668 $ — $ 3,669 Investments — — — 7,558 — 7,558 Accounts receivable, net — — — 5,987 — 5,987 Inventories, net — — — 3,579 — 3,579 Intercompany receivable 37 — 1,343 5,560 (6,940 ) — Other current assets 6 — — 2,181 — 2,187 Total current assets 43 — 1,344 28,533 (6,940 ) 22,980 Property, plant and equipment, net — — — 4,604 — 4,604 Goodwill — — — 39,543 — 39,543 Other intangible assets, net — — — 21,723 — 21,723 Tax assets — — — 1,465 — 1,465 Investment in subsidiaries 60,381 31,144 60,118 — (151,643 ) — Intercompany loans receivable 3,000 1,291 19,337 19,436 (43,064 ) — Other assets — — — 1,078 — 1,078 Total assets $ 63,424 $ 32,435 $ 80,799 $ 116,382 $ (201,647 ) $ 91,393 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ — $ 1,696 $ 362 $ — $ 2,058 Accounts payable — — — 1,628 — 1,628 Intercompany payable — 1,283 5,542 115 (6,940 ) — Accrued compensation 3 — — 1,985 — 1,988 Accrued income taxes — — — 979 — 979 Other accrued expenses 16 21 8 3,386 — 3,431 Total current liabilities 19 1,304 7,246 8,455 (6,940 ) 10,084 Long-term debt — 2,111 844 20,744 — 23,699 Accrued compensation and retirement benefits — — — 1,425 — 1,425 Accrued income taxes 10 — — 3,041 — 3,051 Intercompany loans payable 12,675 100 19,335 10,954 (43,064 ) — Deferred tax liabilities — — — 1,423 — 1,423 Other liabilities — — — 889 — 889 Total liabilities 12,704 3,515 27,425 46,931 (50,004 ) 40,571 Shareholders’ equity 50,720 28,920 53,374 69,349 (151,643 ) 50,720 Noncontrolling interests — — — 102 — 102 Total equity 50,720 28,920 53,374 69,451 (151,643 ) 50,822 Total liabilities and equity $ 63,424 $ 32,435 $ 80,799 $ 116,382 $ (201,647 ) $ 91,393 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 51 — 1,329 7,111 (8,491 ) — Other current assets 10 — — 1,855 — 1,865 Current assets held for sale — — — 371 — 371 Total current assets 61 33 1,334 31,936 (8,491 ) 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 — — — 1,550 — 1,550 Investment in subsidiaries 55,747 50,580 51,208 — (157,535 ) — Intercompany loans receivable 3,000 2,978 16,114 10,149 (32,241 ) — Other assets — — — 1,232 — 1,232 Noncurrent assets held for sale — — — 5,919 — 5,919 Total assets $ 58,808 $ 53,591 $ 68,656 $ 117,069 $ (198,267 ) $ 99,857 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ 1,176 $ 901 $ 5,443 $ — $ 7,520 Accounts payable — — — 1,555 — 1,555 Intercompany payable — 1,269 7,111 111 (8,491 ) — Accrued compensation 9 — — 1,895 — 1,904 Accrued income taxes 13 — — 620 — 633 Other accrued expenses — 23 8 2,587 — 2,618 Current liabilities held for sale — — — 34 — 34 Total current liabilities 22 2,468 8,020 12,245 (8,491 ) 14,264 Long-term debt — 2,133 1,842 21,946 — 25,921 Accrued compensation and retirement benefits — — — 1,724 — 1,724 Accrued income taxes 10 — — 2,395 — 2,405 Intercompany loans payable 8,568 100 10,050 13,523 (32,241 ) — Deferred tax liabilities — — — 2,978 — 2,978 Other liabilities — — — 1,515 — 1,515 Noncurrent liabilities held for sale — — — 720 — 720 Total liabilities 8,600 4,701 19,912 57,046 (40,732 ) 49,527 Shareholders' equity 50,208 48,890 48,744 59,901 (157,535 ) 50,208 Noncontrolling interests — — — 122 — 122 Total equity 50,208 48,890 48,744 60,023 (157,535 ) 50,330 Total liabilities and equity $ 58,808 $ 53,591 $ 68,656 $ 117,069 $ (198,267 ) $ 99,857 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Fiscal Year Ended April 27, 2018 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 $ 155 $ (1,567 ) $ 249 $ 16,419 $ (10,572 ) $ 4,684 Investing Activities: Acquisitions, net of cash acquired — — — (137 ) — (137 ) Proceeds from sale of businesses — — — 6,058 — 6,058 Additions to property, plant, and equipment — (340 ) — (728 ) — (1,068 ) Purchases of investments — (98 ) (25 ) (3,124 ) 47 (3,200 ) Sales and maturities of investments — 25 — 4,249 (47 ) 4,227 Capital contributions paid — (59 ) (4,200 ) — 4,259 — Other investing activities, net — — — (22 ) — (22 ) Net cash (used in) provided by investing activities — (472 ) (4,225 ) 6,296 4,259 5,858 Financing Activities: Acquisition-related contingent consideration — — — (48 ) — (48 ) Change in current debt obligations, net — — (205 ) (44 ) — (249 ) Repayment of short-term borrowings (maturities greater than 90 days) — — — (45 ) — (45 ) Proceeds from short-term borrowings (maturities greater than 90 days) — — — 1 — 1 Issuance of long-term debt — — — 21 — 21 Payments on long-term debt — (6,166 ) — (1,204 ) — (7,370 ) Dividends to shareholders (2,494 ) — — — — (2,494 ) Issuance of ordinary shares 403 — — — — 403 Repurchase of ordinary shares (2,171 ) — — — — (2,171 ) Net intercompany loan borrowings (repayments) 4,107 8,180 4,177 (16,464 ) — — Intercompany dividends paid — — — (10,572 ) 10,572 — Capital contributions received — — — 4,259 (4,259 ) — Other financing activities — — — (2 ) — (2 ) Net cash (used in) provided by financing activities (155 ) 2,014 3,972 (24,098 ) 6,313 (11,954 ) Effect of exchange rate changes on cash and cash equivalents — — — 114 — 114 Net change in cash and cash equivalents — (25 ) (4 ) (1,269 ) — (1,298 ) Cash and cash equivalents at beginning of period — 45 5 4,917 — 4,967 Cash and cash equivalents at end of period $ — $ 20 $ 1 $ 3,648 $ — $ 3,669 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 Capital contributions paid — (248 ) — — 248 — Other investing activities, net — — — 22 — 22 Net cash (used in) provided by investing activities — (1,347 ) — (472 ) 248 (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 (255 ) (3,048 ) (1,347 ) — — 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 ) (565 ) (297 ) (2,218 ) 639 (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 Capital contributions paid — (11 ) (4,959 ) (4,900 ) 9,870 — Other investing activities, net — — — (14 ) — (14 ) Net cash (used in) provided by investing activities — (871 ) (4,959 ) (1,795 ) 9,870 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 (2,459 ) 4,093 (5,552 ) — — 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 ) (547 ) 4,093 (3,471 ) (9,058 ) (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 27, 2018 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 $ 155 $ 974 $ 264 $ 4,339 $ (1,048 ) $ 4,684 Investing Activities: Acquisitions, net of cash acquired — — — (137 ) — (137 ) Proceeds from sale of businesses — — — 6,058 — 6,058 Additions to property, plant, and equipment — — — (1,068 ) — (1,068 ) Purchases of investments — — (25 ) (3,200 ) 25 (3,200 ) Sales and maturities of investments — — — 4,252 (25 ) 4,227 Capital contributions paid — (1,557 ) (4,200 ) — 5,757 — Other investing activities, net — — — (22 ) — (22 ) Net cash (used in) provided by investing activities — (1,557 ) (4,225 ) 5,883 5,757 5,858 Financing Activities: Acquisition-related contingent consideration — — — (48 ) — (48 ) Change in current debt obligations, net — — (205 ) (44 ) — (249 ) Repayment of short-term borrowings (maturities greater than 90 days) — — — (45 ) — (45 ) Proceeds from short-term borrowings (maturities greater than 90 days) — — — 1 — 1 Issuance of long-term debt — — — 21 — 21 Payments on long-term debt — (1,150 ) — (6,220 ) — (7,370 ) Dividends to shareholders (2,494 ) — — — — (2,494 ) Issuance of ordinary shares 403 — — — — 403 Repurchase of ordinary shares (2,171 ) — — — — (2,171 ) Net intercompany loan borrowings (repayments) 4,107 1,700 4,162 (9,969 ) — — Intercompany dividend paid — — — (1,048 ) 1,048 — Capital contributions received — — — 5,757 (5,757 ) — Other financing activities — — — (2 ) — (2 ) Net cash (used in) provided by financing activities (155 ) 550 3,957 (11,597 ) (4,709 ) (11,954 ) Effect of exchange rate changes on cash and cash equivalents — — — 114 — 114 Net change in cash and cash equivalents — (33 ) (4 ) (1,261 ) — (1,298 ) Cash and cash equivalents at beginning of period — 33 5 4,929 — 4,967 Cash and cash equivalents at end of period $ — $ — $ 1 $ 3,668 $ — $ 3,669 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 Capital contributions paid — (537 ) — — 537 — Other investing activities, net — — — 22 — 22 Net cash (used in) provided by investing activities — (537 ) — (1,571 ) 537 (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 (1,542 ) (3,048 ) (60 ) — — 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 ) (1,542 ) (297 ) (2,062 ) 1,460 (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 Sales 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 — (720 ) (4,906 ) 2,192 5,679 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 (1,887 ) 4,132 (6,163 ) — — 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 ) (4,008 ) 4,132 (7,433 ) (1,674 ) (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 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies , Schedule of Impact of Revisions (Details) - USD ($) $ in Millions | Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Tax assets | $ 1,465 | $ 1,550 | ||
Total assets | 91,393 | 99,857 | ||
Accrued compensation | 1,988 | 1,904 | ||
Total current liabilities | 10,084 | 14,264 | ||
Accrued compensation and retirement benefits | 1,425 | 1,724 | ||
Total liabilities | 40,571 | 49,527 | ||
Retained earnings | 24,379 | 23,270 | ||
Total shareholders’ equity | 50,720 | 50,208 | ||
Total equity | 50,822 | 50,330 | $ 51,977 | $ 53,144 |
Total liabilities and equity | $ 91,393 | 99,857 | ||
As Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Tax assets | 1,509 | |||
Total assets | 99,816 | |||
Accrued compensation | 1,860 | |||
Total current liabilities | 14,220 | |||
Accrued compensation and retirement benefits | 1,641 | |||
Total liabilities | 49,400 | |||
Retained earnings | 23,356 | 21,704 | 20,305 | |
Total shareholders’ equity | 50,294 | 52,063 | 53,230 | |
Total equity | 50,416 | 52,063 | 53,230 | |
Total liabilities and equity | 99,816 | |||
Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Tax assets | 41 | |||
Total assets | 41 | |||
Accrued compensation | 44 | |||
Total current liabilities | 44 | |||
Accrued compensation and retirement benefits | 83 | |||
Total liabilities | 127 | |||
Retained earnings | (86) | (86) | (86) | |
Total shareholders’ equity | (86) | (86) | (86) | |
Total equity | (86) | $ (86) | $ (86) | |
Total liabilities and equity | $ 41 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of change in accounting principle | [1] | $ 296 | ||
Accumulated other comprehensive loss | $ 1,786 | 2,613 | ||
Retained earnings | 24,379 | 23,270 | ||
Other Information [Abstract] | ||||
Shipping and handling costs | $ 363 | 370 | $ 316 | |
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of change in accounting principle | [1] | 499 | ||
Accumulated Other Comprehensive Loss | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of change in accounting principle | [1] | (203) | ||
Minimum | ||||
Intangible Assets | ||||
Intangible assets, estimated useful life | 3 years | |||
Maximum | ||||
Intangible Assets | ||||
Intangible assets, estimated useful life | 20 years | |||
Accounting Standards Update 2016-16 | Retained Earnings | Adjustments for New Accounting Principle, Early Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of change in accounting principle | $ 296 | |||
Accounting Standards Update 2018-02 | Adjustments for New Accounting Principle, Early Adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accumulated other comprehensive loss | $ 203 | |||
Retained earnings | 203 | |||
Accounting Standards Update 2016-01 | Retained Earnings | Scenario, Plan | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of change in accounting principle | (83) | |||
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Loss | Scenario, Plan | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of change in accounting principle | $ (83) | |||
[1] | See Note 1 to the consolidated financial statements for discussion regarding the adoption of accounting standards during fiscal year 2018. |
Acquisitions and Acquisition-53
Acquisitions and Acquisition-Related Items , Additional Information (Details) - USD ($) $ in Millions | Aug. 23, 2016 | Aug. 31, 2016 | Apr. 24, 2015 | Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 39,543 | $ 38,515 | $ 41,500 | ||||
Current debt obligations | 2,058 | 7,520 | |||||
Acquisition-related charges | 132 | 230 | 283 | ||||
Contingent consideration | 173 | 246 | 377 | ||||
Other liabilities | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration | 65 | 180 | |||||
Other accrued expenses | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration | 108 | 66 | |||||
Professional services and integration expenses | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition-related charges | 172 | 225 | 219 | ||||
Accelerated or incremental stock compensation expense | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition-related charges | 23 | $ 58 | |||||
Cost of products sold | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition-related charges | $ 28 | $ 10 | |||||
Covidien plc | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition-related charges | $ 50,000 | ||||||
HeartWare International, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Total consideration | $ 1,072 | ||||||
Finite-lived intangibles | 625 | ||||||
Goodwill | 481 | ||||||
Debt acquired | 245 | ||||||
Amount redeemed as part of cash tender offer | $ 203 | ||||||
Current debt obligations | $ 42 | ||||||
HeartWare International, Inc. | Technology-based and customer-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 |
Acquisitions and Acquisition-54
Acquisitions and Acquisition-Related Items , Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Apr. 27, 2018 | Apr. 28, 2017 | Aug. 23, 2016 | Apr. 29, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 39,543 | $ 38,515 | $ 41,500 | |
HeartWare International, Inc. | ||||
Business Acquisition [Line Items] | ||||
Other current assets | $ 351 | |||
Property, plant, and equipment | 14 | |||
Other intangible assets | 625 | |||
Goodwill | 481 | |||
Other assets | 84 | |||
Total assets acquired | 1,555 | |||
Current liabilities | 143 | |||
Deferred tax liabilities | 6 | |||
Long-term debt | 245 | |||
Other liabilities | 89 | |||
Total liabilities assumed | 483 | |||
Net assets acquired | $ 1,072 | |||
All Other | ||||
Business Acquisition [Line Items] | ||||
Other current assets | 3 | |||
Property, plant, and equipment | 6 | |||
Other intangible assets | 95 | |||
Goodwill | 52 | |||
Other assets | 0 | |||
Total assets acquired | 156 | |||
Current liabilities | 2 | |||
Deferred tax liabilities | 2 | |||
Long-term debt | 0 | |||
Other liabilities | 0 | |||
Total liabilities assumed | 4 | |||
Net assets acquired | $ 152 |
Acquisitions and Acquisition-55
Acquisitions and Acquisition-Related Items , Contingent Consideration (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 27, 2018 | Apr. 28, 2017 | |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions | ||
Beginning Balance | $ 246 | $ 377 |
Purchase price contingent consideration | 28 | 28 |
Contingent consideration payments | (72) | (76) |
Change in fair value of contingent consideration | (29) | (83) |
Ending Balance | 173 | 246 |
Fair Value Inputs | ||
Contingent consideration | 246 | $ 377 |
Fair Value, Measurements, Recurring | Level 3 | Revenue-based payments | Discounted cash flow | ||
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions | ||
Ending Balance | 90 | |
Fair Value Inputs | ||
Contingent consideration | $ 90 | |
Fair Value, Measurements, Recurring | Level 3 | Revenue-based payments | Discounted cash flow | Minimum | ||
Fair Value Inputs | ||
Discount rate | 11.50% | |
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 | Discounted cash flow | ||
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions | ||
Ending Balance | $ 83 | |
Fair Value Inputs | ||
Contingent consideration | $ 83 | |
Discount rate | 5.50% | |
Fair Value, Measurements, Recurring | Level 3 | Product development-based payments | Discounted cash flow | Minimum | ||
Fair Value Inputs | ||
Probability of payment | 75.00% | |
Fair Value, Measurements, Recurring | Level 3 | Product development-based payments | Discounted cash flow | Maximum | ||
Fair Value Inputs | ||
Probability of payment | 100.00% |
Divestiture and Divestiture-R56
Divestiture and Divestiture-Related Items (Details) | Jul. 29, 2017USD ($)site | Apr. 27, 2018USD ($) | Apr. 28, 2017USD ($) | Apr. 29, 2016USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of businesses | $ 6,058,000,000 | $ 0 | $ 0 | |
Gain on sale of businesses | 697,000,000 | 0 | 0 | |
Divestiture-related items | 114,000,000 | 0 | $ 0 | |
Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of businesses | $ 6,100,000,000 | |||
Gain on sale of businesses | $ 697,000,000 | |||
Sale of businesses, number of dedicated manufacturing sites | site | 17 | |||
Sale of businesses, transitional agreement, manufacture and supply services, term | 5 years | |||
Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency Business | Held for sale, not discontinued operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Inventories, net | 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 | |||
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 | |||
Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency Business | Disposed of by sale, not discontinued operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Divestiture-related items | 114,000,000 | |||
Accelerated stock compensation expense | $ 16,000,000 | |||
Maximum | Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Sale of businesses, transitional agreement, administrative services, term | 12 months |
Restructuring Charges , Additio
Restructuring Charges , Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Enterprise Excellence | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 96 | ||
Cost Synergies | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 45 | $ 368 | $ 332 |
Reversal of excess accrual | (34) | (68) | (18) |
Restructuring charges, including incremental defined benefit pension and post-retirement related expenses | 441 | ||
Incremental defined benefit pension and post-retirement related expenses for employees that accepted voluntary early retirement packages | 73 | ||
Settled non cash | 27 | 23 | |
Cost Synergies | Cost of products sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 12 | ||
Cost Synergies | Selling, general, and administrative expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 4 | ||
Cost Synergies | Impairment of property, plant and equipment | |||
Restructuring Cost and Reserve [Line Items] | |||
Settled non cash | 17 | 14 | |
Cost Synergies | Inventory write-offs and discontinued product lines | Cost of products sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Settled non cash | $ 10 | $ 9 | |
Minimum | Enterprise Excellence | Pre-tax exit and disposal costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated expected restructuring costs | 1,600 | ||
Maximum | Enterprise Excellence | Pre-tax exit and disposal costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated expected restructuring costs | $ 1,800 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Enterprise Excellence | |||
Changes in Restructuring Reserves | |||
Beginning balance | $ 0 | ||
Charges | 96 | ||
Cash payments | (67) | ||
Ending balance | 29 | $ 0 | |
Enterprise Excellence | Employee Termination Benefits | |||
Changes in Restructuring Reserves | |||
Beginning balance | 0 | ||
Charges | 35 | ||
Cash payments | (8) | ||
Ending balance | 27 | 0 | |
Enterprise Excellence | Associated Costs | |||
Changes in Restructuring Reserves | |||
Beginning balance | 0 | ||
Charges | 61 | ||
Cash payments | (59) | ||
Ending balance | 2 | 0 | |
Enterprise Excellence | Associated Costs | Cost of products sold | |||
Changes in Restructuring Reserves | |||
Charges | 28 | ||
Enterprise Excellence | Associated Costs | Selling, general, and administrative expense | |||
Changes in Restructuring Reserves | |||
Charges | 33 | ||
Cost Synergies | |||
Changes in Restructuring Reserves | |||
Beginning balance | 291 | 250 | $ 143 |
Charges | 45 | 368 | 332 |
Cash payments | (164) | (232) | (184) |
Settled non-cash | (27) | (23) | |
Accrual adjustments | (34) | (68) | (18) |
Ending balance | 138 | 291 | 250 |
Cost Synergies | Cost of products sold | |||
Changes in Restructuring Reserves | |||
Charges | 12 | ||
Cost Synergies | Selling, general, and administrative expense | |||
Changes in Restructuring Reserves | |||
Charges | 4 | ||
Cost Synergies | Employee Termination Benefits | |||
Changes in Restructuring Reserves | |||
Beginning balance | 261 | 213 | 136 |
Charges | 25 | 287 | 248 |
Cash payments | (132) | (179) | (153) |
Settled non-cash | 0 | 0 | |
Accrual adjustments | (38) | (60) | (18) |
Ending balance | 116 | 261 | 213 |
Cost Synergies | Asset Write-downs | |||
Changes in Restructuring Reserves | |||
Beginning balance | 0 | 0 | 0 |
Charges | 0 | 27 | 23 |
Cash payments | 0 | 0 | 0 |
Settled non-cash | (27) | (23) | |
Accrual adjustments | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Cost Synergies | Other Costs | |||
Changes in Restructuring Reserves | |||
Beginning balance | 30 | 37 | 7 |
Charges | 20 | 54 | 61 |
Cash payments | (32) | (53) | (31) |
Settled non-cash | 0 | 0 | |
Accrual adjustments | 4 | (8) | 0 |
Ending balance | $ 22 | $ 30 | $ 37 |
Special Charge (Details)
Special Charge (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Other Income and Expenses [Abstract] | |||
Special charge recognized | $ 80 | $ 100 | $ 0 |
Financial Instruments , Investm
Financial Instruments , Investments by Category and Related Balance Sheet Presentation (Details) - USD ($) $ in Millions | Apr. 27, 2018 | Apr. 28, 2017 |
Total available-for-sale securities: | ||
Cost | $ 7,964 | $ 9,008 |
Unrealized Gains | 121 | 127 |
Unrealized Losses | (321) | (246) |
Fair Value | 7,764 | 8,889 |
Cost method, equity method, and other investments: | ||
Cost | 353 | 589 |
Total investments: | ||
Cost | 8,317 | 9,597 |
Unrealized Gains | 121 | 127 |
Unrealized Losses | (321) | (246) |
Fair Value | 7,764 | 8,889 |
Investments | ||
Total available-for-sale securities: | ||
Fair Value | 7,558 | 8,741 |
Cost method, equity method, and other investments: | ||
Cost | 0 | 0 |
Total investments: | ||
Fair Value | 7,558 | 8,741 |
Other Assets | ||
Total available-for-sale securities: | ||
Fair Value | 206 | 148 |
Cost method, equity method, and other investments: | ||
Cost | 353 | 589 |
Total investments: | ||
Fair Value | 559 | 737 |
Marketable equity securities | Other Assets | ||
Available-for-sale securities | ||
Fair Value | 162 | 103 |
Debt funds | ||
Investments measured at net asset value: | ||
Cost | 199 | 497 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (2) | (6) |
Fair Value | 197 | 491 |
Debt funds | Investments | ||
Investments measured at net asset value: | ||
Fair Value | 197 | 491 |
Debt funds | Other Assets | ||
Investments measured at net asset value: | ||
Fair Value | 0 | 0 |
Level 1 | ||
Available-for-sale securities | ||
Cost | 795 | 671 |
Unrealized Gains | 99 | 51 |
Unrealized Losses | (26) | (9) |
Fair Value | 868 | 713 |
Level 1 | Investments | ||
Available-for-sale securities | ||
Fair Value | 706 | 610 |
Level 1 | Other Assets | ||
Available-for-sale securities | ||
Fair Value | 162 | 103 |
Level 1 | U.S. government and agency securities | ||
Available-for-sale securities | ||
Cost | 732 | 613 |
Unrealized Gains | 0 | 2 |
Unrealized Losses | (26) | (5) |
Fair Value | 706 | 610 |
Level 1 | U.S. government and agency securities | Investments | ||
Available-for-sale securities | ||
Fair Value | 706 | 610 |
Level 1 | U.S. government and agency securities | Other Assets | ||
Available-for-sale securities | ||
Fair Value | 0 | 0 |
Level 1 | Marketable equity securities | ||
Available-for-sale securities | ||
Cost | 63 | 58 |
Unrealized Gains | 99 | 49 |
Unrealized Losses | 0 | (4) |
Fair Value | 162 | 103 |
Level 1 | Marketable equity securities | Investments | ||
Available-for-sale securities | ||
Fair Value | 0 | 0 |
Level 1 | Marketable equity securities | Other Assets | ||
Available-for-sale securities | ||
Fair Value | 162 | 103 |
Level 2 | ||
Available-for-sale securities | ||
Cost | 6,923 | 7,792 |
Unrealized Gains | 22 | 76 |
Unrealized Losses | (290) | (228) |
Fair Value | 6,655 | 7,640 |
Level 2 | Investments | ||
Available-for-sale securities | ||
Fair Value | 6,655 | 7,640 |
Level 2 | Other Assets | ||
Available-for-sale securities | ||
Fair Value | 0 | 0 |
Level 2 | U.S. government and agency securities | ||
Available-for-sale securities | ||
Cost | 848 | 860 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (24) | (10) |
Fair Value | 824 | 850 |
Level 2 | U.S. government and agency securities | Investments | ||
Available-for-sale securities | ||
Fair Value | 824 | 850 |
Level 2 | U.S. government and agency securities | Other Assets | ||
Available-for-sale securities | ||
Fair Value | 0 | 0 |
Level 2 | Corporate debt securities | ||
Available-for-sale securities | ||
Cost | 4,179 | 4,643 |
Unrealized Gains | 20 | 62 |
Unrealized Losses | (75) | (23) |
Fair Value | 4,124 | 4,682 |
Level 2 | Corporate debt securities | Investments | ||
Available-for-sale securities | ||
Fair Value | 4,124 | 4,682 |
Level 2 | Corporate debt securities | Other Assets | ||
Available-for-sale securities | ||
Fair Value | 0 | 0 |
Level 2 | Mortgage-backed securities | ||
Available-for-sale securities | ||
Cost | 725 | 766 |
Unrealized Gains | 2 | 9 |
Unrealized Losses | (34) | (16) |
Fair Value | 693 | 759 |
Level 2 | Mortgage-backed securities | Investments | ||
Available-for-sale securities | ||
Fair Value | 693 | 759 |
Level 2 | Mortgage-backed securities | Other Assets | ||
Available-for-sale securities | ||
Fair Value | 0 | 0 |
Level 2 | Non-U.S. government and agency securities | ||
Available-for-sale securities | ||
Cost | 74 | 49 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | 0 |
Fair Value | 73 | 49 |
Level 2 | Non-U.S. government and agency securities | Investments | ||
Available-for-sale securities | ||
Fair Value | 73 | 49 |
Level 2 | Non-U.S. government and agency securities | Other Assets | ||
Available-for-sale securities | ||
Fair Value | 0 | 0 |
Level 2 | Other asset-backed securities | ||
Available-for-sale securities | ||
Cost | 358 | 228 |
Unrealized Gains | 0 | 1 |
Unrealized Losses | (2) | (1) |
Fair Value | 356 | 228 |
Level 2 | Other asset-backed securities | Investments | ||
Available-for-sale securities | ||
Fair Value | 356 | 228 |
Level 2 | Other asset-backed securities | Other Assets | ||
Available-for-sale securities | ||
Fair Value | 0 | 0 |
Level 2 | Debt funds | ||
Available-for-sale securities | ||
Cost | 739 | 1,246 |
Unrealized Gains | 0 | 4 |
Unrealized Losses | (154) | (178) |
Fair Value | 585 | 1,072 |
Level 2 | Debt funds | Investments | ||
Available-for-sale securities | ||
Fair Value | 585 | 1,072 |
Level 2 | Debt funds | Other Assets | ||
Available-for-sale securities | ||
Fair Value | 0 | 0 |
Level 3 | ||
Available-for-sale securities | ||
Cost | 47 | 48 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3) | (3) |
Fair Value | 44 | 45 |
Cost method, equity method, and other investments: | ||
Cost | 353 | 589 |
Level 3 | Investments | ||
Available-for-sale securities | ||
Fair Value | 0 | 0 |
Cost method, equity method, and other investments: | ||
Cost | 0 | 0 |
Level 3 | Other Assets | ||
Available-for-sale securities | ||
Fair Value | 44 | 45 |
Cost method, equity method, and other investments: | ||
Cost | 353 | 589 |
Level 3 | Corporate debt securities | ||
Available-for-sale securities | ||
Cost | 1 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 1 | |
Level 3 | Corporate debt securities | Investments | ||
Available-for-sale securities | ||
Fair Value | 0 | |
Level 3 | Corporate debt securities | Other Assets | ||
Available-for-sale securities | ||
Fair Value | 1 | |
Level 3 | Auction rate securities | ||
Available-for-sale securities | ||
Cost | 47 | 47 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3) | (3) |
Fair Value | 44 | 44 |
Level 3 | Auction rate securities | Investments | ||
Available-for-sale securities | ||
Fair Value | 0 | 0 |
Level 3 | Auction rate securities | Other Assets | ||
Available-for-sale securities | ||
Fair Value | $ 44 | $ 44 |
Financial Instruments , AFS in
Financial Instruments , AFS in Continuous Loss Position (Details) - USD ($) $ in Millions | Apr. 27, 2018 | Apr. 28, 2017 |
Fair Value | ||
Less than 12 months | $ 4,101 | $ 2,749 |
More than 12 months | 1,666 | 1,312 |
Unrealized Losses | ||
Less than 12 months | (107) | (43) |
More than 12 months | (214) | (203) |
Corporate debt securities | ||
Fair Value | ||
Less than 12 months | 2,620 | 1,263 |
More than 12 months | 272 | 46 |
Unrealized Losses | ||
Less than 12 months | (58) | (19) |
More than 12 months | (17) | (4) |
U.S. government and agency securities | ||
Fair Value | ||
Less than 12 months | 762 | 896 |
More than 12 months | 374 | 0 |
Unrealized Losses | ||
Less than 12 months | (33) | (15) |
More than 12 months | (17) | 0 |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 442 | 276 |
More than 12 months | 102 | 95 |
Unrealized Losses | ||
Less than 12 months | (15) | (4) |
More than 12 months | (19) | (12) |
Non-U.S. government and agency securities | ||
Fair Value | ||
Less than 12 months | 32 | |
More than 12 months | 36 | |
Unrealized Losses | ||
Less than 12 months | 0 | |
More than 12 months | (1) | |
Other asset-backed securities | ||
Fair Value | ||
Less than 12 months | 238 | 127 |
More than 12 months | 63 | 0 |
Unrealized Losses | ||
Less than 12 months | (1) | (1) |
More than 12 months | (1) | 0 |
Debt funds | ||
Fair Value | ||
Less than 12 months | 7 | 173 |
More than 12 months | 775 | 1,125 |
Unrealized Losses | ||
Less than 12 months | 0 | (1) |
More than 12 months | (156) | (183) |
Auction rate securities | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
More than 12 months | 44 | 44 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
More than 12 months | $ (3) | (3) |
Marketable equity securities | ||
Fair Value | ||
Less than 12 months | 14 | |
More than 12 months | 2 | |
Unrealized Losses | ||
Less than 12 months | (3) | |
More than 12 months | $ (1) |
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. 27, 2018 | Apr. 28, 2017 | |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ||
Beginning balance | $ 45 | $ 45 |
Settlements | (1) | 0 |
Ending balance | 44 | 45 |
Corporate debt securities | ||
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ||
Beginning balance | 1 | 1 |
Settlements | (1) | 0 |
Ending balance | 0 | 1 |
Auction rate securities | ||
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | ||
Beginning balance | 44 | 44 |
Settlements | 0 | 0 |
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. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
AFS Debt Maturities | |||
Due in one year or less | $ 887 | ||
Due after one year through five years | 2,687 | ||
Due after five years through ten years | 3,138 | ||
Due after ten years | 108 | ||
Total debt securities | 6,820 | ||
Debt | |||
AFS Gross Realized Gain (Loss) | |||
Proceeds from sales | 4,114 | $ 5,224 | $ 9,881 |
Gross realized gains | 30 | 75 | 36 |
Gross realized losses | (25) | (56) | (53) |
Recognized impairment losses | 0 | 0 | 0 |
Equity | |||
AFS Gross Realized Gain (Loss) | |||
Proceeds from sales | 113 | 132 | 42 |
Gross realized gains | 15 | 49 | 38 |
Gross realized losses | 0 | 0 | 0 |
Recognized impairment losses | $ (231) | $ (30) | $ (114) |
Financial Instruments , Additio
Financial Instruments , Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Schedule of Investments [Line Items] | ||||
Aggregate carrying amount of equity and other securities without a quoted market price that are accounted for using the cost or equity method | $ 353,000,000 | $ 353,000,000 | $ 589,000,000 | |
Carrying value of investments prior to recognizing impairment charges | 317,000,000 | 317,000,000 | ||
Cash proceeds from sale of significant portion of ownership in equity method investment | 72,000,000 | |||
Remaining investment accounted for using equity method | 18,000,000 | 18,000,000 | ||
Gain or loss recognized on transaction | 0 | |||
Investment loss | ||||
Schedule of Investments [Line Items] | ||||
Cost and equity method investment impairment charges | 227,000,000 | $ 70,000,000 | ||
Other assets | ||||
Schedule of Investments [Line Items] | ||||
Aggregate carrying amount of equity and other securities without a quoted market price that are accounted for using the cost or equity method | 353,000,000 | 353,000,000 | 589,000,000 | |
Debt | ||||
Schedule of Investments [Line Items] | ||||
Credit loss portion of other-than-temporary impairments | 0 | 0 | 0 | |
Reductions for available-for-sale securities sold | 0 | 0 | ||
Cost and equity method investment impairment charges | 0 | 0 | 0 | |
Marketable equity securities | ||||
Schedule of Investments [Line Items] | ||||
Cost and equity method investment impairment charges | 231,000,000 | 30,000,000 | $ 114,000,000 | |
Marketable equity securities | Other assets | ||||
Schedule of Investments [Line Items] | ||||
Investments in marketable equity securities | $ 162,000,000 | $ 162,000,000 | $ 103,000,000 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets , Changes in Goodwill (Details) - USD ($) | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 38,515,000,000 | $ 41,500,000,000 | |
Goodwill as a result of acquisitions | 52,000,000 | 732,000,000 | |
Purchase accounting adjustments | 54,000,000 | ||
Currency translation | 922,000,000 | (807,000,000) | |
Goodwill reclassified to noncurrent assets held for sale | (2,910,000,000) | ||
Goodwill, ending balance | 39,543,000,000 | 38,515,000,000 | $ 41,500,000,000 |
Goodwill impairment | 0 | 0 | 0 |
Cardiac and Vascular Group | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 6,651,000,000 | 6,243,000,000 | |
Goodwill as a result of acquisitions | 6,000,000 | 457,000,000 | |
Purchase accounting adjustments | 54,000,000 | ||
Currency translation | 80,000,000 | (49,000,000) | |
Goodwill reclassified to noncurrent assets held for sale | 0 | ||
Goodwill, ending balance | 6,791,000,000 | 6,651,000,000 | 6,243,000,000 |
Minimally Invasive Therapies Group | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 20,411,000,000 | 23,784,000,000 | |
Goodwill as a result of acquisitions | 10,000,000 | 242,000,000 | |
Purchase accounting adjustments | 0 | ||
Currency translation | 734,000,000 | (705,000,000) | |
Goodwill reclassified to noncurrent assets held for sale | (2,910,000,000) | ||
Goodwill, ending balance | 21,155,000,000 | 20,411,000,000 | 23,784,000,000 |
Restorative Therapies Group | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 9,600,000,000 | 9,620,000,000 | |
Goodwill as a result of acquisitions | 9,000,000 | 33,000,000 | |
Purchase accounting adjustments | 0 | ||
Currency translation | 108,000,000 | (53,000,000) | |
Goodwill reclassified to noncurrent assets held for sale | 0 | ||
Goodwill, ending balance | 9,717,000,000 | 9,600,000,000 | 9,620,000,000 |
Diabetes Group | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 1,853,000,000 | 1,853,000,000 | |
Goodwill as a result of acquisitions | 27,000,000 | 0 | |
Purchase accounting adjustments | 0 | ||
Currency translation | 0 | 0 | |
Goodwill reclassified to noncurrent assets held for sale | 0 | ||
Goodwill, ending balance | $ 1,880,000,000 | $ 1,853,000,000 | $ 1,853,000,000 |
Goodwill and Other Intangible66
Goodwill and Other Intangible Assets , Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 29,434,000,000 | $ 29,172,000,000 | |
Accumulated Amortization | (8,201,000,000) | (6,359,000,000) | |
Impairment of finite-lived intangible assets | 0 | 0 | $ 0 |
Impairment of indefinite-lived intangible assets | 68,000,000 | 0 | $ 0 |
IPR&D | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived Intangible Assets | 490,000,000 | 594,000,000 | |
Customer-related | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 16,949,000,000 | 16,862,000,000 | |
Accumulated Amortization | (3,139,000,000) | (2,166,000,000) | |
Purchased technology and patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 11,569,000,000 | 11,461,000,000 | |
Accumulated Amortization | (4,441,000,000) | (3,690,000,000) | |
Trademarks and tradenames | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 822,000,000 | 772,000,000 | |
Accumulated Amortization | (569,000,000) | (461,000,000) | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 94,000,000 | 77,000,000 | |
Accumulated Amortization | $ (52,000,000) | $ (42,000,000) |
Goodwill and Other Intangible67
Goodwill and Other Intangible Assets , Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 1,823 | $ 1,980 | $ 1,931 |
2,019 | 1,633 | ||
2,020 | 1,583 | ||
2,021 | 1,568 | ||
2,022 | 1,548 | ||
2,023 | $ 1,481 |
Financing Arrangements , Curren
Financing Arrangements , Current Debt Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 27, 2018 | Apr. 28, 2017 | |
Short-term Debt [Line Items] | ||
Current debt obligations | $ 2,058 | $ 7,520 |
Debt premium, net | $ 0 | 26 |
Three-year term loan | ||
Short-term Debt [Line Items] | ||
Debt term | 3 years | |
Current debt obligations | $ 0 | 3,000 |
Bank borrowings | ||
Short-term Debt [Line Items] | ||
Current debt obligations | 355 | 396 |
Capital lease obligations | ||
Short-term Debt [Line Items] | ||
Current debt obligations | 5 | 5 |
Commercial paper | Commercial paper | ||
Short-term Debt [Line Items] | ||
Current debt obligations | $ 698 | 901 |
Senior Notes | 1.700 percent two-year 2017 senior notes | ||
Short-term Debt [Line Items] | ||
Stated interest rate | 1.70% | |
Debt term | 2 years | |
Current debt obligations | $ 1,000 | 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 | $ 0 | 1,150 |
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 | $ 0 | 1,000 |
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 | $ 0 | 1,000 |
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 | $ 0 | $ 42 |
Financing Arrangements , Additi
Financing Arrangements , Additional Information (Details) | Jan. 26, 2015USD ($) | Apr. 27, 2018USD ($) | Apr. 29, 2016USD ($) | Apr. 27, 2018USD ($) | Apr. 28, 2017USD ($) | Apr. 29, 2016USD ($) | Mar. 31, 2017USD ($)tranche |
Debt Instrument [Line Items] | |||||||
Amount of current debt obligations outstanding | $ 2,058,000,000 | $ 2,058,000,000 | $ 7,520,000,000 | ||||
Face value | 24,500,000,000 | 24,500,000,000 | 28,900,000,000 | ||||
Loss on debt extinguishment | 38,000,000 | 0 | $ 163,000,000 | ||||
Estimated fair value of senior notes | 25,100,000,000 | 25,100,000,000 | 30,400,000,000 | ||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Redemption of senior notes, face amount | 1,200,000,000 | $ 2,700,000,000 | 1,200,000,000 | $ 2,700,000,000 | |||
Redemption of senior notes, consideration | 1,200,000,000 | 3,000,000,000 | |||||
Loss on debt redemption | 38,000,000 | ||||||
Loss on debt extinguishment | 163,000,000 | ||||||
Interest expense, loss due to acceleration of net losses on derivatives for terminations | $ 20,000,000 | ||||||
$3.5 Billion Revolving Credit Facility | Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 3,500,000,000 | $ 3,500,000,000 | |||||
Debt term | 5 years | ||||||
Additional borrowing capacity | 500,000,000 | $ 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 | ||||||
Repayment of term loan | $ 3,000,000,000 | ||||||
2017 Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Number of tranches | tranche | 2 | ||||||
Face value | $ 1,850,000,000 | ||||||
1.700 percent two-year 2017 senior notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 1.70% | 1.70% | 1.70% | ||||
Debt term | 2 years | ||||||
Face value | $ 1,000,000,000 | ||||||
3.350 percent ten-year 2017 senior notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 3.35% | 3.35% | 3.35% | ||||
Debt term | 10 years | ||||||
Face value | $ 850,000,000 | ||||||
4.625 percent 2017 senior notes due 2045 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4.625% | ||||||
Face value | $ 150,000,000 | ||||||
4.625 percent thirty-year 2015 senior notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4.625% | 4.625% | 4.625% | ||||
Debt term | 30 years | ||||||
Face value | $ 4,000,000,000 | ||||||
4.125 percent ten-year 2011 senior notes | 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 | ||||
3.125 percent ten-year 2012 senior notes | 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 | ||||
Bank borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Amount of current debt obligations outstanding | $ 355,000,000 | $ 355,000,000 | $ 396,000,000 | ||||
Bank borrowings | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 0.17% | 0.17% | |||||
Bank borrowings | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 0.21% | 0.21% | |||||
Commercial paper | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average original maturity | 28 days | 39 days | |||||
Weighted average interest rate | 1.46% | 1.46% | 0.89% | ||||
Commercial paper | Commercial paper | |||||||
Debt Instrument [Line Items] | |||||||
Commercial paper, maximum borrowing capacity | $ 3,500,000,000 | ||||||
Amount of current debt obligations outstanding | $ 698,000,000 | $ 698,000,000 | $ 901,000,000 |
Financing Arrangements , Long-t
Financing Arrangements , Long-term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | |||
Debt premium, net | $ 120 | $ 135 | |
Deferred financing costs | (107) | (128) | |
Long-term debt | 23,699 | 25,921 | |
Interest rate swaps | |||
Debt Instrument [Line Items] | |||
Interest rate swaps | $ (6) | 40 | |
Senior Notes | 5.600 percent ten-year 2009 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.60% | ||
Debt term | 10 years | ||
Amount | $ 0 | $ 400 | |
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 | ||
Amount | $ 0 | $ 1,000 | |
Effective Interest Rate | 1.74% | 1.74% | |
Senior Notes | 4.450 percent ten-year 2010 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.45% | ||
Debt term | 10 years | ||
Amount | $ 0 | $ 766 | |
Effective Interest Rate | 4.47% | 4.47% | |
Senior Notes | Floating rate five-year 2015 senior notes | |||
Debt Instrument [Line Items] | |||
Debt term | 5 years | ||
Amount | $ 500 | $ 500 | |
Effective Interest Rate | 2.92% | 1.98% | |
Senior Notes | 2.500 percent five-year 2015 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 2.50% | ||
Debt term | 5 years | ||
Amount | $ 2,500 | $ 2,500 | |
Effective Interest Rate | 2.52% | 2.52% | |
Senior Notes | 4.200 percent ten-year 2010 CIFSA senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.20% | ||
Debt term | 10 years | ||
Amount | $ 600 | $ 600 | |
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 | ||
Amount | $ 500 | $ 500 | |
Effective Interest Rate | 4.19% | 4.19% | |
Senior Notes | 3.150 percent seven-year 2015 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.15% | ||
Debt term | 7 years | ||
Amount | $ 2,500 | $ 2,500 | |
Effective Interest Rate | 3.18% | 3.18% | |
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 | ||
Amount | $ 675 | $ 675 | |
Effective Interest Rate | 3.16% | 3.16% | |
Senior Notes | 3.200 percent ten-year 2012 CIFSA senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.20% | ||
Debt term | 10 years | ||
Amount | $ 650 | $ 650 | |
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 | ||
Amount | $ 530 | $ 530 | |
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 | ||
Amount | $ 310 | $ 310 | |
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 | ||
Amount | $ 850 | $ 850 | |
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 | ||
Amount | $ 4,000 | $ 4,000 | |
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 | ||
Amount | $ 850 | $ 850 | |
Effective Interest Rate | 3.35% | 3.35% | |
Senior Notes | 4.375 percent twenty-year 2015 senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.375% | ||
Debt term | 20 years | ||
Amount | $ 2,382 | $ 2,382 | |
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 | ||
Amount | $ 374 | $ 374 | |
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 | ||
Amount | $ 300 | $ 300 | |
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 | ||
Amount | $ 500 | $ 500 | |
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 | ||
Amount | $ 400 | $ 400 | |
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 | ||
Amount | $ 325 | $ 325 | |
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 | ||
Amount | $ 650 | $ 650 | |
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 | ||
Amount | $ 4,150 | $ 4,150 | |
Effective Interest Rate | 4.63% | 4.63% | |
Bank borrowings | |||
Debt Instrument [Line Items] | |||
Amount | $ 125 | $ 139 | |
Effective Interest Rate | 3.99% | 1.28% | |
Capital lease obligations | |||
Debt Instrument [Line Items] | |||
Capital lease obligations | $ 21 | $ 23 | |
Effective Interest Rate | 4.46% | 4.81% |
Financing Arrangements , Long71
Financing Arrangements , Long-term Debt Maturities (Details) $ in Millions | Apr. 27, 2018USD ($) |
Long-term Debt, Fiscal Year Maturity | |
2,019 | $ 2,058 |
2,020 | 3,006 |
2,021 | 1,122 |
2,022 | 3,275 |
2,023 | 1,192 |
Thereafter | 15,097 |
Total debt | 25,750 |
Less: Current portion of debt | 2,058 |
Long-term portion of debt | $ 23,692 |
Derivatives and Currency Exch72
Derivatives and Currency Exchange Risk Management , Freestanding Derivative Contracts and Cash Flow Hedges (Details) - USD ($) | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
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 | |
After-tax net unrealized gains (losses) | (207,000,000) | 37,000,000 | |
Cash flow hedge unrealized losses to be reclassified over the next twelve months, net of tax | 111,000,000 | ||
Currency exchange rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gross notional amount | 11,500,000,000 | 10,800,000,000 | |
Currency exchange rate contracts | Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gross notional amount | 5,200,000,000 | 4,900,000,000 | |
Currency exchange rate contracts | Derivatives designated as hedging instruments | Cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gross notional amount | $ 6,300,000,000 | $ 5,800,000,000 | |
Derivative term | 2 years | 2 years | |
Total return swaps | Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gross notional amount | $ 210,000,000 | ||
Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Market value of derivative instruments - unrealized gains recorded in accumulated other comprehensive loss | $ 21,000,000 | 23,000,000 | |
Interest rate swaps | Derivatives designated as hedging instruments | Cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, notional amount terminated | $ 300,000,000 | $ 500,000,000 | |
Weighted average fixed rate of interest rate derivatives | 3.10% |
Derivatives and Currency Exch73
Derivatives and Currency Exchange Risk Management , Derivative Gains (Losses) Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | $ (226) | $ 54 | $ 33 |
Currency exchange rate contracts | Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | (253) | 54 | 33 |
Total return swaps | Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | $ 27 | $ 0 | $ 0 |
Derivatives and Currency Exch74
Derivatives and Currency Exchange Risk Management , Gross Gains (Losses) Recognized in AOCI and Recognized in Income (Details) - Cash flow hedges - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized in AOCI | $ (165) | ||
Recognized in Income | 368 | ||
Currency exchange rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized in AOCI | $ (404) | $ 342 | (165) |
Currency exchange rate contracts | Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized in Income | $ (69) | $ 173 | 405 |
Currency exchange rate contracts | Cost of products sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized in Income | $ (37) |
Derivatives and Currency Exch75
Derivatives and Currency Exchange Risk Management , Fair Value Hedges (Details) - USD ($) | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Derivative [Line Items] | |||
Face value of debt | $ 24,500,000,000 | $ 28,900,000,000 | |
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 | Derivatives designated as hedging instruments | Interest rate swaps | |||
Derivative [Line Items] | |||
Gross notional amount | $ 1,200,000,000 | $ 1,200,000,000 | |
Unrealized gain (loss) on interest rate fair value hedging instruments | (6,000,000) | 41,000,000 | |
Unrealized gain (loss) on interest rate fair value hedged items | $ 6,000,000 | $ (41,000,000) |
Derivatives and Currency Exch76
Derivatives and Currency Exchange Risk Management , Balance Sheet Presentation (Details) - USD ($) $ in Millions | Apr. 27, 2018 | Apr. 28, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 118 | $ 262 |
Derivative Liabilities | 258 | 104 |
Currency exchange rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 79 | 216 |
Derivative Liabilities | 238 | 93 |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 8 | 41 |
Derivative Liabilities | 14 | |
Total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 4 | |
Stock warrants | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 21 | |
Cross currency interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 6 | 5 |
Derivative Liabilities | 6 | 11 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 56 | 241 |
Derivative Liabilities | 227 | 57 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 37 | 152 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 11 | 48 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 162 | 43 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 51 | 14 |
Derivatives designated as hedging instruments | Interest rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 8 | 41 |
Derivatives designated as hedging instruments | Interest rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 14 | 0 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 62 | 21 |
Derivative Liabilities | 31 | 47 |
Derivatives not designated as hedging instruments | Currency exchange rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 31 | 16 |
Derivatives not designated as hedging instruments | Currency exchange rate contracts | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 25 | 36 |
Derivatives not designated as hedging instruments | Total return swaps | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 4 | |
Derivatives not designated as hedging instruments | Total return swaps | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | |
Derivatives not designated as hedging instruments | Stock warrants | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 21 | |
Derivatives not designated as hedging instruments | Stock warrants | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | |
Derivatives not designated as hedging instruments | Cross currency interest rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 6 | 5 |
Derivatives not designated as hedging instruments | Cross currency interest rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 6 | $ 11 |
Derivatives and Currency Exch77
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. 27, 2018 | Apr. 28, 2017 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 79 | $ 216 |
Derivative liabilities | 238 | 93 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 39 | 46 |
Derivative liabilities | $ 20 | $ 11 |
Derivatives and Currency Exch78
Derivatives and Currency Exchange Risk Management , Offsetting of Assets and Liabilities (Details) - USD ($) $ in Millions | Apr. 27, 2018 | Apr. 28, 2017 |
Derivative assets: | ||
Gross Amount of Recognized Assets (Liabilities) | $ 118 | $ 262 |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | (71) | (75) |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted | 0 | (60) |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted | 0 | 0 |
Net Amount | 47 | 127 |
Derivative liabilities: | ||
Gross Amount of Recognized Assets (Liabilities) | (258) | (104) |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 71 | 75 |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted | 0 | 0 |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted | 76 | 0 |
Net Amount | (111) | (29) |
Total | ||
Gross Amount of Recognized Assets (Liabilities) | (140) | 158 |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 0 | 0 |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted | 0 | (60) |
Derivative, Assets And Liabilities, Net, Collateral, Right to Reclaim Securities | 76 | 0 |
Net Amount | (64) | 98 |
Currency exchange rate contracts | ||
Derivative assets: | ||
Gross Amount of Recognized Assets (Liabilities) | 79 | 216 |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | (61) | (58) |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted | 0 | (55) |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted | 0 | 0 |
Net Amount | 18 | 103 |
Derivative liabilities: | ||
Gross Amount of Recognized Assets (Liabilities) | (238) | (93) |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 61 | 73 |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted | 0 | 0 |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted | 74 | 0 |
Net Amount | (103) | (20) |
Interest rate contracts | ||
Derivative assets: | ||
Gross Amount of Recognized Assets (Liabilities) | 8 | 41 |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | (6) | (15) |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted | 0 | (5) |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted | 0 | 0 |
Net Amount | 2 | 21 |
Derivative liabilities: | ||
Gross Amount of Recognized Assets (Liabilities) | (14) | |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 6 | |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted | 0 | |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted | 2 | |
Net Amount | (6) | |
Cross currency interest rate contracts | ||
Derivative assets: | ||
Gross Amount of Recognized Assets (Liabilities) | 6 | 5 |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | (4) | (2) |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted | 0 | 0 |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted | 0 | 0 |
Net Amount | 2 | 3 |
Derivative liabilities: | ||
Gross Amount of Recognized Assets (Liabilities) | (6) | (11) |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 4 | 2 |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted | 0 | 0 |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted | 0 | 0 |
Net Amount | (2) | $ (9) |
Total return swaps | ||
Derivative assets: | ||
Gross Amount of Recognized Assets (Liabilities) | 4 | |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 0 | |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted | 0 | |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted | 0 | |
Net Amount | 4 | |
Stock warrants | ||
Derivative assets: | ||
Gross Amount of Recognized Assets (Liabilities) | 21 | |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 0 | |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted | 0 | |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted | 0 | |
Net Amount | $ 21 |
Derivatives and Currency Exch79
Derivatives and Currency Exchange Risk Management , Concentrations of Credit Risk (Details) - USD ($) $ in Millions | Apr. 27, 2018 | Apr. 28, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net securities collateral posted | $ 76 | $ 0 |
Net cash collateral received | $ 0 | $ 60 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Apr. 27, 2018 | Apr. 28, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 2,407 | $ 2,211 |
Work-in-process | 496 | 458 |
Raw materials | 676 | 669 |
Total | $ 3,579 | $ 3,338 |
Property, Plant, and Equipmen81
Property, Plant, and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | $ 10,259 | $ 9,691 | |
Less: Accumulated depreciation | (5,655) | (5,330) | |
Property, plant, and equipment, net | 4,604 | 4,361 | |
Depreciation expense | 821 | 937 | $ 889 |
Land and land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment | $ 187 | 186 | |
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] | |||
Property, plant, and equipment | $ 2,265 | 2,175 | |
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 | $ 6,749 | 6,435 | |
Property, plant, and equipment, useful life | 15 years | ||
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] | |||
Property, plant, and equipment | $ 1,058 | $ 895 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) | 11 Months Ended | 12 Months Ended | |||||
Apr. 27, 2018USD ($)$ / sharesshares | Apr. 27, 2018USD ($)$ / sharesshares | Apr. 28, 2017$ / sharesshares | Apr. 27, 2018€ / shares | Jun. 30, 2017USD ($) | Jun. 30, 2015shares | Jun. 15, 2014$ / shares | |
Class of Stock [Line Items] | |||||||
Common stock, authorized (in 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 | $ 0.0001 | ||||
Deferred stock, shares authorized (in shares) | 40,000 | 40,000 | |||||
Deferred stock, par value (in euros per share) | € / shares | € 1 | ||||||
Preferred stock, authorized (in shares) | 127,500,000 | 127,500,000 | |||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.20 | $ 0.20 | |||||
Deferred stock, issued (in shares) | 0 | 0 | |||||
Deferred stock, outstanding (in shares) | 0 | 0 | |||||
Preferred stock, issued (in shares) | 0 | 0 | |||||
Preferred stock, outstanding (in shares) | 0 | 0 | |||||
June 2015 Share Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Shares repurchased (in shares) | 25,000,000 | 43,000,000 | |||||
Average repurchase price (in dollars per share) | $ / shares | $ 83.71 | $ 83.03 | |||||
Common stock authorized to be repurchased (in shares) | 80,000,000 | ||||||
Number of shares repurchased to date (in shares) | 13,000,000 | 13,000,000 | |||||
June 2017 Share Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Amount authorized for repurchase | $ | $ 5,000,000,000 | ||||||
Amount repurchased | $ | $ 1,000,000,000 | ||||||
Amount available for future repurchases | $ | $ 4,000,000,000 | $ 4,000,000,000 | |||||
Series A Preferred Shares | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, authorized (in shares) | 500,000 | 500,000 | |||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 | $ 1 | ||||
Preferred stock, outstanding (in shares) | 1,872 | 1,872 |
Stock Purchase and Award Plan83
Stock Purchase and Award Plans , Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Apr. 27, 2018 | Apr. 28, 2017 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 10 years | |
Vesting period | 4 years | |
Unrecognized compensation expense related to outstanding stock options | $ 72 | |
Weighted average period over which unrecognized compensation is expected to be recognized | 2 years | |
Performance-based share options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
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) | 8,236,000 | 8,788,000 |
Weighted average period over which unrecognized compensation is expected to be recognized | 2 years 4 months 12 days | |
Unrecognized compensation expense related to restricted stock awards | $ 307 | |
Employee 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) | $ 69.41 | |
Shares available for future purchase (in shares) | 16,000,000 | |
Amount withheld to purchase common stock | $ 11 | |
2013 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for future grants (in shares) | 63,000,000 |
Stock Purchase and Award Plan84
Stock Purchase and Award Plans , Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted average fair value of options granted (in dollars per share) | $ 13.71 | $ 14.70 | $ 13.72 |
Assumptions used: | |||
Expected life (years) | 6 years 1 month 28 days | 6 years 2 months 4 days | 5 years 11 months 10 days |
Risk-free interest rate | 2.00% | 1.26% | 1.79% |
Volatility | 19.51% | 21.07% | 21.00% |
Dividend yield | 2.19% | 1.97% | 1.96% |
Stock Purchase and Award Plan85
Stock Purchase and Award Plans , Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 344 | $ 348 | $ 375 |
Income tax benefits | (82) | (98) | (108) |
Total stock-based compensation expense, net of tax | 262 | 250 | 267 |
Cost of products sold | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 44 | 49 | 50 |
Research and development expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 38 | 41 | 37 |
Selling, general, and administrative expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 242 | 233 | 212 |
Restructuring charges | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 0 | 2 | 18 |
Acquisition-related items | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 4 | 23 | 58 |
Divestiture-related items | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 16 | 0 | 0 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 132 | 157 | 206 |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 185 | 169 | 148 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 27 | $ 22 | $ 21 |
Stock Purchase and Award Plan86
Stock Purchase and Award Plans , Stock Options Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Options | |||
Outstanding at beginning of period (in shares) | 45,194 | ||
Granted (in shares) | 3,773 | ||
Exercised (in shares) | (6,145) | ||
Expired/Forfeited (in shares) | (1,783) | ||
Outstanding at end of period (in shares) | 41,039 | 45,194 | |
Options, Vested and expected to vest (in shares) | 23,093 | ||
Options, Exercisable (in shares) | 17,136 | ||
Wtd. Avg. Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 62.41 | ||
Granted (in dollars per share) | 83.92 | ||
Exercised (in dollars per share) | 43.72 | ||
Expired/Forfeited (in dollars per share) | 76.93 | ||
Outstanding at end of period (in dollars per share) | 66.56 | $ 62.41 | |
Weighted Average Exercise Price, Vested and expected to vest (in dollars per share) | 77.30 | ||
Weighted Average Exercise Price, Exercisable (in dollars per share) | $ 51.43 | ||
Additional Disclosures | |||
Weighted Average Remaining Contractual Term, Outstanding | 5 years 11 months 9 days | ||
Weighted Average Remaining Contractual Term, Vested and expected to vest | 7 years 1 month 13 days | ||
Weighted Average Remaining Contractual Term, Exercisable | 4 years 3 months | ||
Aggregate Intrinsic Value, Outstanding | $ 637 | ||
Aggregate Intrinsic Value, Vested and expected to vest | 115 | ||
Aggregate Intrinsic Value, Exercisable | 520 | ||
Cash proceeds from options exercised | 250 | $ 367 | $ 452 |
Intrinsic value of options exercised | 248 | 403 | 374 |
Tax benefit related to options exercised | $ 75 | $ 140 | $ 131 |
Stock Purchase and Award Plan87
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. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Units | |||
Nonvested at beginning of period (in shares) | 8,788 | ||
Granted (in shares) | 2,683 | ||
Vested (in shares) | (2,589) | ||
Forfeited (in shares) | (646) | ||
Nonvested at end of period (in shares) | 8,236 | 8,788 | |
Wtd. Avg. Grant Price | |||
Nonvested at beginning of period (in dollars per share) | $ 76.49 | ||
Granted (in dollars per share) | 83.88 | $ 85.07 | $ 77.68 |
Vested (in dollars per share) | 61.73 | ||
Forfeited (in dollars per share) | 78.90 | ||
Nonvested at end of period (in dollars per share) | $ 83.35 | $ 76.49 | |
Fair value of restricted stock vested | $ 160 | $ 131 | $ 276 |
Tax benefit related to restricted stock vested | $ 63 | $ 76 | $ 76 |
Income Taxes , Components of In
Income Taxes , Components of Income Before Income Taxes, Based on Jurisdiction (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (958) | $ (234) | $ 333 |
International | 6,633 | 4,836 | 4,003 |
Income before income taxes | $ 5,675 | $ 4,602 | $ 4,336 |
Income Taxes , Income Tax Provi
Income Taxes , Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Current tax expense: | |||
U.S. | $ 2,899 | $ 614 | $ 440 |
International | 796 | 840 | 835 |
Total current tax expense | 3,695 | 1,454 | 1,275 |
Deferred tax expense (benefit): | |||
U.S. | 45 | (399) | (67) |
International | (1,160) | (477) | (410) |
Net deferred tax benefit | (1,115) | (876) | (477) |
Income tax provision | $ 2,580 | $ 578 | $ 798 |
Income Taxes , Additional Infor
Income Taxes , Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 | |
Operating Loss Carryforwards [Line Items] | ||||
Blended statutory tax rate | 30.50% | 35.00% | 35.00% | |
Tax Cuts and Jobs Act of 2017, provisional income tax expense | $ 2,400 | |||
Tax Cuts and Jobs Act of 2017, provisional transition tax for accumulated foreign earnings | 2,600 | |||
Tax Cuts and Jobs Act of 2017, remeasure of deferred tax assets and liabilities, provisional tax benefit | 114 | |||
Undistributed earnings from non-U.S. subsidiaries | 61,000 | $ 31,800 | ||
Tax credit carryforward | 174 | |||
Tax credit carryforward, no expiration | 58 | |||
Valuation allowance | 7,166 | 6,311 | ||
Income tax settlements and adjustments | 1,900 | 202 | $ 417 | |
Charge associated with internal reorganization of certain foreign subsidiaries | 73 | |||
Tax benefit from intercompany sale of intellectual property | 579 | |||
Charge associated with IRS resolution | 404 | |||
Net charge associated with divestiture of division | 125 | |||
Charge associated with 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 that became available | 9,700 | |||
Tax benefit associated with the disposition of a wholly owned U.S. subsidiary | 25 | |||
Tax reductions from tax holiday | 446 | 475 | 474 | |
Gross unrecognized tax benefits | 1,727 | 1,896 | 2,703 | $ 2,860 |
Unrecognized tax benefits that would impact effective tax rate | 1,700 | 1,800 | 2,100 | |
Gross unrecognized tax benefits, net of cash advance, noncurrent liability | 868 | |||
Decrease in unrecognized tax benefits is reasonably possible (as much as) | 25 | |||
Accrued income tax penalties and interest | 128 | 360 | 609 | |
Interest expense (income) | 84 | $ (208) | $ 80 | |
Internal Revenue Service (IRS) | 2005 through 2014 | ||||
Operating Loss Carryforwards [Line Items] | ||||
Advance payment in connection with certain tax matters | 1,100 | |||
Tax resolutions | 859 | |||
Interest | 285 | |||
Non-U.S. Tax Authorities | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 28,400 | |||
Net operating loss carryforwards, no expiration | 25,200 | |||
Net operating loss carryforwards, expiring in future years | 3,200 | |||
Net operating loss carryforwards, valuation allowance | 8,700 | |||
Special deductions | $ 12,000 | |||
Impact on diluted earnings per share (in dollars per share) | $ 0.33 | $ 0.34 | $ 0.33 | |
Non-U.S. Tax Authorities | Subsidiaries | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 19,700 | |||
U.S. Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 963 | |||
Income tax settlements and adjustments | $ 442 | |||
State and Local Tax Authorities | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 981 |
Income Taxes , Schedule of Defe
Income Taxes , Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Apr. 27, 2018 | Apr. 28, 2017 |
Deferred tax assets: | ||
Net operating loss, capital loss, and credit carryforwards | $ 7,463 | $ 6,800 |
Other accrued liabilities | 410 | 658 |
Accrued compensation | 209 | 427 |
Pension and post-retirement benefits | 256 | 456 |
Stock-based compensation | 190 | 278 |
Other | 332 | 349 |
Inventory | 207 | 277 |
Federal and state benefit on uncertain tax positions | 67 | 191 |
Unrealized loss on available-for-sale securities and derivative financial instruments | 93 | 0 |
Gross deferred tax assets | 9,227 | 9,436 |
Valuation allowance | (7,166) | (6,311) |
Total deferred tax assets | 2,061 | 3,125 |
Deferred tax liabilities: | ||
Intangible assets | (1,697) | (4,943) |
Realized loss on derivative financial instruments | (69) | (112) |
Other | (143) | (74) |
Accumulated depreciation | (38) | (149) |
Unrealized gain on available-for-sale securities and derivative financial instruments | 0 | (18) |
Outside basis difference of subsidiaries | (131) | (112) |
Total deferred tax liabilities | (2,078) | (5,408) |
Prepaid income taxes | 406 | 475 |
Income tax receivables | 315 | 218 |
Tax assets (liabilities), net | 704 | |
Tax assets (liabilities), net | (1,590) | |
Reported as (after valuation allowance and jurisdictional netting): | ||
Other current assets | 662 | 545 |
Tax assets | 1,465 | 1,550 |
Deferred tax liabilities | (1,423) | (2,978) |
Noncurrent liabilities held for sale | $ 0 | $ (707) |
Income Taxes , Effective Income
Income Taxes , Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 30.50% | 35.00% | 35.00% |
Increase (decrease) in tax rate resulting from: | |||
U.S. state taxes, net of federal tax benefit | 0.80% | 1.00% | 0.90% |
Research and development credit | (0.80%) | (0.90%) | (1.20%) |
Domestic production activities | (0.10%) | (0.40%) | (0.30%) |
International | (18.80%) | (27.10%) | (23.40%) |
Puerto Rico Excise Tax | (1.10%) | (1.50%) | (1.60%) |
Impact of adjustments | (8.50%) | 5.70% | 11.40% |
U.S. Tax Reform | 43.00% | 0.00% | 0.00% |
Valuation allowance release | (0.10%) | (1.00%) | (0.90%) |
Stock based compensation | (1.00%) | 0.00% | 0.00% |
Other, net | 1.60% | 1.80% | (1.50%) |
Effective tax rate | 45.50% | 12.60% | 18.40% |
Income Taxes , Reconciliation o
Income Taxes , Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits at beginning of fiscal year | $ 1,896 | $ 2,703 | $ 2,860 |
Gross increases: | |||
Prior year tax positions | 13 | 147 | 36 |
Current year tax positions | 63 | 75 | 202 |
Acquisitions | 0 | 4 | 0 |
Gross decreases: | |||
Prior year tax positions | (120) | (538) | (116) |
Settlements | (80) | (467) | (275) |
Statute of limitation lapses | (45) | (28) | (4) |
Gross unrecognized tax benefits at end of fiscal year | 1,727 | 1,896 | 2,703 |
Cash advance paid to taxing authorities | (859) | 0 | (384) |
Gross unrecognized tax benefits at end of fiscal year, net of cash advance | $ 868 | $ 1,896 | $ 2,319 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 27, 2018 | Jan. 26, 2018 | Oct. 27, 2017 | Jul. 28, 2017 | Apr. 28, 2017 | Jan. 27, 2017 | Oct. 28, 2016 | Jul. 29, 2016 | Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Numerator: | |||||||||||
Net income attributable to ordinary shareholders | $ 1,460 | $ (1,389) | $ 2,017 | $ 1,016 | $ 1,163 | $ 821 | $ 1,115 | $ 929 | $ 3,104 | $ 4,028 | $ 3,538 |
Denominator: | |||||||||||
Basic - weighted average shares outstanding (in shares) | 1,356.7 | 1,378.9 | 1,409.6 | ||||||||
Effect of dilutive securities: | |||||||||||
Employee stock options (in shares) | 7.9 | 9 | 12.2 | ||||||||
Employee restricted stock units (in shares) | 3.3 | 3.4 | 4 | ||||||||
Other (in shares) | 0.3 | 0.1 | 0.1 | ||||||||
Diluted – weighted average shares outstanding (in shares) | 1,368.2 | 1,391.4 | 1,425.9 | ||||||||
Basic earnings per share (in dollars per share) | $ 1.08 | $ (1.03) | $ 1.49 | $ 0.75 | $ 0.85 | $ 0.60 | $ 0.81 | $ 0.67 | $ 2.29 | $ 2.92 | $ 2.51 |
Diluted earnings per share (in dollars per share) | $ 1.07 | $ (1.03) | $ 1.48 | $ 0.74 | $ 0.84 | $ 0.59 | $ 0.80 | $ 0.66 | $ 2.27 | $ 2.89 | $ 2.48 |
Stock options | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Number of shares excluded from computation of earnings per share (in shares) | 10 | 7 | 4 |
Retirement Benefit Plans , Addi
Retirement Benefit Plans , Additional Information (Details) $ in Millions | 12 Months Ended | |||
Apr. 27, 2018USD ($)fund | Apr. 28, 2017USD ($) | Apr. 29, 2016USD ($) | May 01, 2005plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Cost of retirement benefit plans | $ 552 | $ 602 | $ 584 | |
Underfunded status of the plan | $ 942 | 1,300 | ||
Special termination benefits, defined contribution plan | 4 | |||
Cash payments and administrative fees | 2 | |||
Number of funds in process of liquidation | fund | 0 | |||
Expense under defined contribution plans | $ 374 | 347 | 269 | |
Treasury bond rate of guaranteed rate of return | 10 years | |||
Personal Pension Account | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expense under defined contribution plans | $ 56 | 58 | 58 | |
Medtronic Core Contribution | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expense under defined contribution plans | $ 49 | 45 | 12 | |
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 | |||
Private equity fund | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Private equity funds, unfunded commitments | $ 168 | |||
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 | |||
Real estate investments | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Number of funds in process of liquidation | fund | 0 | |||
U.S. | ||||
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. | Equity | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocations | 49.00% | |||
U.S. | Debt | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocations | 32.00% | |||
U.S. | Other | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocations | 19.00% | |||
Pension benefits | U.S. | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Underfunded status of the plan | $ 541 | 753 | ||
Special termination benefits, defined benefit plan | 0 | 60 | 0 | |
Defined benefit plan, future amortization of net actuarial loss | 77 | |||
Employer contributions | 215 | 183 | ||
Estimated future employer contributions in next fiscal year | 91 | |||
Post-retirement benefit plans, net periodic benefit cost (benefit) | 127 | 180 | 159 | |
Post-retirement benefit plans, benefit obligations | 3,202 | 3,232 | 3,048 | |
Post-retirement benefit plans, fair value of plan assets | 2,661 | 2,479 | 2,138 | |
Pension benefits | Non-U.S. | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Underfunded status of the plan | 387 | 499 | ||
Special termination benefits, defined benefit plan | 0 | 0 | 0 | |
Defined benefit plan, future amortization of net actuarial loss | 11 | |||
Employer contributions | 90 | 76 | ||
Estimated future employer contributions in next fiscal year | 85 | |||
Post-retirement benefit plans, net periodic benefit cost (benefit) | 60 | 64 | 74 | |
Post-retirement benefit plans, benefit obligations | 1,791 | 1,734 | 1,535 | |
Post-retirement benefit plans, fair value of plan assets | $ 1,404 | 1,235 | 1,113 | |
Pension benefits | Non-U.S. | Equity | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocations | 38.00% | |||
Pension benefits | Non-U.S. | Debt | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocations | 29.00% | |||
Pension benefits | Non-U.S. | Other | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Target allocations | 33.00% | |||
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 (benefit) | $ (9) | 11 | $ 12 | |
Post-retirement benefit plans, benefit obligations | 317 | 323 | ||
Post-retirement benefit plans, fair value of plan assets | $ 303 | 289 | ||
Decrease in projected benefit obligation | 46 | |||
Other post-retirement benefits | U.S. | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Special termination benefits, defined benefit plan | 7 | |||
Cost Synergies | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Incremental defined benefit pension and post-retirement related expenses for employees that accepted voluntary early retirement packages | 73 | |||
Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency Business | Held for sale, not discontinued operations | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Liabilities classified as held for sale | 12 | |||
Disposal group, pension benefit liabilities | 9 | |||
Disposal group, post-retirement benefit liabilities | $ 3 |
Retirement Benefit Plans , Chan
Retirement Benefit Plans , Change in Benefit Obligation and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | Apr. 27, 2018 | Apr. 28, 2017 | |
Funded status at end of year: | |||||
Underfunded status of the plans | $ (942) | $ (1,300) | |||
Amounts recognized on the consolidated balance sheets consist of: | |||||
Non-current liabilities | (1,425) | (1,724) | |||
Pension benefits | |||||
Plans with accumulated benefit obligations in excess of plan assets | |||||
Accumulated benefit obligation | 4,110 | 4,188 | |||
Projected benefit obligation | 4,282 | 4,677 | |||
Plan assets at fair value | 3,472 | 3,454 | |||
Plans with projected benefit obligations in excess of plan assets | |||||
Projected benefit obligation | 4,736 | 4,903 | |||
Plan assets at fair value | 3,793 | 3,646 | |||
U.S. Pension Benefits | Pension benefits | |||||
Defined Benefit Plan Disclosure [Line items] | |||||
Accumulated benefit obligation at end of year | 2,943 | 2,879 | |||
Change in projected benefit obligation: | |||||
Projected benefit obligation at beginning of year | $ 3,232 | $ 3,048 | |||
Service cost | 116 | 117 | $ 120 | ||
Interest cost | 117 | 109 | 122 | ||
Employee contributions | 0 | 0 | |||
Plan curtailments and settlements | (168) | 0 | |||
Actuarial (gain) loss | 12 | (22) | |||
Benefits paid | (107) | (80) | |||
Special termination benefits | 0 | 60 | |||
Currency exchange rate changes and other | 0 | 0 | |||
Divestiture | 0 | 0 | |||
Projected benefit obligation at end of year | 3,202 | 3,232 | 3,048 | ||
Change in plan assets: | |||||
Fair value of plan assets at beginning of year | 2,479 | 2,138 | |||
Actual return on plan assets | 243 | 238 | |||
Employer contributions | 215 | 183 | |||
Employee contributions | 0 | 0 | |||
Plan settlements | (168) | 0 | |||
Benefits paid | (108) | (80) | |||
Currency exchange rate changes and other | 0 | 0 | |||
Divestiture | 0 | 0 | |||
Fair value of plan assets at end of year | 2,661 | 2,479 | 2,138 | ||
Funded status at end of year: | |||||
Fair value of plan assets | 2,479 | 2,138 | 2,138 | 2,661 | 2,479 |
Benefit obligations | 3,232 | 3,048 | 3,048 | 3,202 | 3,232 |
Underfunded status of the plans | (541) | (753) | |||
Recognized liability | (541) | (753) | |||
Amounts recognized on the consolidated balance sheets consist of: | |||||
Non-current assets | 0 | 0 | |||
Current liabilities | (17) | (13) | |||
Non-current liabilities | (524) | (740) | |||
Recognized liability | (541) | (753) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||
Prior service cost (benefit) | 2 | 3 | |||
Net actuarial loss | 1,088 | 1,212 | |||
Ending balance | 1,090 | 1,215 | |||
Non-U.S. Pension Benefits | Pension benefits | |||||
Defined Benefit Plan Disclosure [Line items] | |||||
Accumulated benefit obligation at end of year | 1,580 | 1,518 | |||
Change in projected benefit obligation: | |||||
Projected benefit obligation at beginning of year | 1,734 | 1,535 | |||
Service cost | 67 | 70 | 81 | ||
Interest cost | 28 | 26 | 31 | ||
Employee contributions | 12 | 15 | |||
Plan curtailments and settlements | (8) | 6 | |||
Actuarial (gain) loss | (74) | 182 | |||
Benefits paid | (51) | (43) | |||
Special termination benefits | 0 | 0 | |||
Currency exchange rate changes and other | 146 | (57) | |||
Divestiture | (63) | 0 | |||
Projected benefit obligation at end of year | 1,791 | 1,734 | 1,535 | ||
Change in plan assets: | |||||
Fair value of plan assets at beginning of year | 1,235 | 1,113 | |||
Actual return on plan assets | 67 | 109 | |||
Employer contributions | 90 | 76 | |||
Employee contributions | 13 | 15 | |||
Plan settlements | (4) | (1) | |||
Benefits paid | (51) | (43) | |||
Currency exchange rate changes and other | 108 | (34) | |||
Divestiture | (54) | 0 | |||
Fair value of plan assets at end of year | 1,404 | 1,235 | 1,113 | ||
Funded status at end of year: | |||||
Fair value of plan assets | 1,235 | 1,113 | 1,113 | 1,404 | 1,235 |
Benefit obligations | $ 1,734 | $ 1,535 | $ 1,535 | 1,791 | 1,734 |
Underfunded status of the plans | (387) | (499) | |||
Recognized liability | (387) | (499) | |||
Amounts recognized on the consolidated balance sheets consist of: | |||||
Non-current assets | 16 | 5 | |||
Current liabilities | (8) | (7) | |||
Non-current liabilities | (395) | (497) | |||
Recognized liability | (387) | (499) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||
Prior service cost (benefit) | (9) | (6) | |||
Net actuarial loss | 380 | 450 | |||
Ending balance | $ 371 | $ 444 |
Retirement Benefit Plans , Net
Retirement Benefit Plans , Net Periodic Cost and AOCI (Details) - Pension benefits - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
U.S. Pension Benefits | |||
Net Periodic Benefit Cost | |||
Service cost | $ 116 | $ 117 | $ 120 |
Interest cost | 117 | 109 | 122 |
Expected return on plan assets | (205) | (195) | (180) |
Amortization of prior service cost | 1 | 1 | 0 |
Amortization of net actuarial loss | 82 | 88 | 98 |
Settlement loss (gain) | 16 | 0 | (1) |
Special termination benefits | 0 | 60 | 0 |
Net periodic benefit cost | 127 | 180 | 159 |
Amounts Recognized in AOCI | |||
Net actuarial gain | (27) | ||
Amortization of prior service cost | (1) | ||
Amortization of net actuarial loss | (82) | ||
Prior service cost | 0 | ||
Effect of exchange rates | 0 | ||
Settlement loss | (17) | ||
Total recognized in accumulated other comprehensive loss | (127) | ||
Total recognized in net periodic benefit cost and accumulated other comprehensive loss | 0 | ||
Non-U.S. Pension Benefits | |||
Net Periodic Benefit Cost | |||
Service cost | 67 | 70 | 81 |
Interest cost | 28 | 26 | 31 |
Expected return on plan assets | (53) | (48) | (48) |
Amortization of prior service cost | 0 | (1) | 0 |
Amortization of net actuarial loss | 18 | 17 | 20 |
Settlement loss (gain) | 0 | 0 | (10) |
Special termination benefits | 0 | 0 | 0 |
Net periodic benefit cost | 60 | $ 64 | $ 74 |
Amounts Recognized in AOCI | |||
Net actuarial gain | (88) | ||
Amortization of prior service cost | 0 | ||
Amortization of net actuarial loss | (18) | ||
Prior service cost | (4) | ||
Effect of exchange rates | 37 | ||
Settlement loss | 0 | ||
Total recognized in accumulated other comprehensive loss | (73) | ||
Total recognized in net periodic benefit cost and accumulated other comprehensive loss | $ (13) |
Retirement Benefit Plans , Actu
Retirement Benefit Plans , Actuarial Assumptions and Plan Assets Target Allocations (Details) | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
U.S. Pension Benefits | |||
Plan Assets Target Allocations | |||
Target Allocation | 100.00% | ||
Actual Allocation | 100.00% | 100.00% | |
U.S. Pension Benefits | Equity securities | |||
Plan Assets Target Allocations | |||
Target Allocation | 49.00% | ||
Actual Allocation | 49.00% | 45.00% | |
U.S. Pension Benefits | Debt securities | |||
Plan Assets Target Allocations | |||
Target Allocation | 32.00% | ||
Actual Allocation | 32.00% | 37.00% | |
U.S. Pension Benefits | Other | |||
Plan Assets Target Allocations | |||
Target Allocation | 19.00% | ||
Actual Allocation | 19.00% | 18.00% | |
Pension benefits | U.S. Pension Benefits | |||
Critical assumptions – projected benefit obligation: | |||
Rate of compensation increase | 3.90% | 3.90% | 3.90% |
Critical assumptions – net periodic benefit cost: | |||
Expected return on plan assets | 7.90% | 8.20% | 8.20% |
Rate of compensation increase | 3.90% | 3.90% | 3.90% |
Pension benefits | U.S. Pension Benefits | Minimum | |||
Critical assumptions – projected benefit obligation: | |||
Discount rate | 4.20% | 3.70% | 3.60% |
Critical assumptions – net periodic benefit cost: | |||
Discount rate – benefit obligation | 4.00% | 3.55% | 4.20% |
Discount rate – service cost | 3.70% | 3.60% | 4.20% |
Discount rate – interest cost | 3.45% | 2.90% | 4.20% |
Pension benefits | U.S. Pension Benefits | Maximum | |||
Critical assumptions – projected benefit obligation: | |||
Discount rate | 4.35% | 4.30% | 4.30% |
Critical assumptions – net periodic benefit cost: | |||
Discount rate – benefit obligation | 4.30% | 4.30% | 4.80% |
Discount rate – service cost | 4.45% | 4.45% | 4.80% |
Discount rate – interest cost | 3.80% | 3.80% | 4.80% |
Pension benefits | Non-U.S. Pension Benefits | |||
Critical assumptions – projected benefit obligation: | |||
Rate of compensation increase | 2.88% | 2.89% | 2.83% |
Critical assumptions – net periodic benefit cost: | |||
Expected return on plan assets | 4.20% | 4.45% | 4.35% |
Rate of compensation increase | 2.89% | 2.83% | 2.92% |
Pension benefits | Non-U.S. Pension Benefits | Equity securities | |||
Plan Assets Target Allocations | |||
Target Allocation | 38.00% | ||
Pension benefits | Non-U.S. Pension Benefits | Debt securities | |||
Plan Assets Target Allocations | |||
Target Allocation | 29.00% | ||
Pension benefits | Non-U.S. Pension Benefits | Other | |||
Plan Assets Target Allocations | |||
Target Allocation | 33.00% | ||
Pension benefits | Non-U.S. Pension Benefits | Minimum | |||
Critical assumptions – projected benefit obligation: | |||
Discount rate | 0.70% | 0.45% | 0.25% |
Critical assumptions – net periodic benefit cost: | |||
Discount rate – benefit obligation | 0.45% | 0.25% | 0.80% |
Discount rate – service cost | 0.20% | 0.05% | 0.80% |
Discount rate – interest cost | 0.45% | 0.30% | 0.80% |
Pension benefits | Non-U.S. Pension Benefits | Maximum | |||
Critical assumptions – projected benefit obligation: | |||
Discount rate | 11.00% | 11.40% | 10.20% |
Critical assumptions – net periodic benefit cost: | |||
Discount rate – benefit obligation | 11.40% | 10.20% | 9.00% |
Discount rate – service cost | 11.40% | 10.20% | 9.00% |
Discount rate – interest cost | 11.40% | 10.20% | 9.00% |
Retirement Benefit Plans , Fair
Retirement Benefit Plans , Fair Value Measurement (Details) - Pension benefits - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | $ 2,661 | $ 2,479 | $ 2,138 |
Investments Measured at Net Asset Value | 1,620 | 1,426 | |
U.S. Pension Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 362 | 306 | |
U.S. Pension Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 142 | 279 | |
U.S. Pension Benefits | Level 3 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 537 | 468 | |
U.S. Pension Benefits | Short-term investments | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 181 | 168 | |
U.S. Pension Benefits | Short-term investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 181 | 168 | |
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 | 181 | 167 | |
U.S. Pension Benefits | U.S. government securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 181 | 138 | |
U.S. Pension Benefits | U.S. government securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 29 | |
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 | 142 | 250 | |
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 | 142 | 250 | |
U.S. Pension Benefits | Corporate debt securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Benefits | Equity commingled trusts | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 1,322 | 1,127 | |
Investments Measured at Net Asset Value | 1,322 | 1,127 | |
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 | 298 | 299 | |
Investments Measured at Net Asset Value | 298 | 299 | |
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 | Partnership units | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 537 | 468 | |
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 | 537 | 468 | |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | |||
Beginning balance | 468 | 462 | |
Total realized (losses) gains | (42) | 25 | |
Total unrealized gains | 141 | 28 | |
Purchases and sales, net | (30) | (47) | |
Ending balance | 537 | 468 | |
Non-U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 1,404 | 1,235 | $ 1,113 |
Investments Measured at Net Asset Value | 1,362 | 1,191 | |
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 | 42 | 44 | |
Non-U.S. Pension Benefits | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line items] | |||
Fair value of plan assets | 1,362 | 1,191 | |
Investments Measured at Net Asset Value | 1,362 | 1,191 | |
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 | 42 | 44 | |
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 | 42 | 44 | |
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs | |||
Beginning balance | 44 | 76 | |
Total unrealized gains | 2 | 2 | |
Purchases and sales, net | (7) | (31) | |
Currency exchange rate changes | 3 | (3) | |
Ending balance | $ 42 | $ 44 |
Retirement Benefit Plans , Futu
Retirement Benefit Plans , Future Benefit Payments (Details) - Pension benefits $ in Millions | Apr. 27, 2018USD ($) |
U.S. Pension Benefits | |
Estimated Future Benefit Payments | |
2,019 | $ 106 |
2,020 | 115 |
2,021 | 123 |
2,022 | 133 |
2,023 | 143 |
2024 – 2028 | 890 |
Total | 1,510 |
Non-U.S. Pension Benefits | |
Estimated Future Benefit Payments | |
2,019 | 49 |
2,020 | 45 |
2,021 | 48 |
2,022 | 51 |
2,023 | 58 |
2024 – 2028 | 323 |
Total | $ 574 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Capitalized Leases | |||
2,019 | $ 5 | ||
2,020 | 5 | ||
2,021 | 4 | ||
2,022 | 3 | ||
2,023 | 3 | ||
Thereafter | 6 | ||
Total minimum lease payments | 26 | ||
Less amounts representing interest | (5) | ||
Present value of net minimum lease payments | 21 | ||
Operating Leases | |||
2,019 | 234 | ||
2,020 | 182 | ||
2,021 | 133 | ||
2,022 | 87 | ||
2,023 | 43 | ||
Thereafter | 74 | ||
Total minimum lease payments | 753 | ||
Rent expense for operating leases | $ 319 | $ 294 | $ 269 |
Accumulated Other Comprehens102
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 50,330 | $ 51,977 | $ 53,144 | |
Other comprehensive gain (loss) | 1,030 | (744) | (684) | |
Cumulative effect of change in accounting principle | [1] | 296 | ||
Ending balance | 50,822 | 50,330 | 51,977 | |
Unrealized Gain (Loss) on Available-for-Sale Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (69) | (107) | ||
Other comprehensive (loss) income before reclassifications | (95) | 52 | ||
Reclassifications | (8) | (14) | ||
Other comprehensive gain (loss) | (103) | 38 | ||
Cumulative effect of change in accounting principle | (22) | |||
Ending balance | (194) | (69) | (107) | |
Other comprehensive income (loss), tax expense (benefit) | 26 | 41 | (94) | |
Reclassifications from AOCI, tax expense (benefit) | 4 | 8 | 8 | |
Cumulative Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,452) | (474) | ||
Other comprehensive (loss) income before reclassifications | 1,218 | (978) | ||
Reclassifications | (34) | 0 | ||
Other comprehensive gain (loss) | 1,184 | (978) | ||
Cumulative effect of change in accounting principle | 0 | |||
Ending balance | (268) | (1,452) | (474) | |
Net Change in Retirement Obligations | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,129) | (1,197) | ||
Other comprehensive (loss) income before reclassifications | 100 | (17) | ||
Reclassifications | 67 | 85 | ||
Other comprehensive gain (loss) | 167 | 68 | ||
Cumulative effect of change in accounting principle | (155) | |||
Ending balance | (1,117) | (1,129) | (1,197) | |
Other comprehensive income (loss), tax expense (benefit) | 14 | 41 | (85) | |
Reclassifications from AOCI, tax expense (benefit) | 27 | 23 | 39 | |
Unrealized Gain (Loss) on Derivative Financial Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 37 | (90) | ||
Other comprehensive (loss) income before reclassifications | (272) | 233 | ||
Reclassifications | 54 | (106) | ||
Other comprehensive gain (loss) | (218) | 127 | ||
Cumulative effect of change in accounting principle | (26) | |||
Ending balance | (207) | 37 | (90) | |
Other comprehensive income (loss), tax expense (benefit) | (132) | 130 | (51) | |
Reclassifications from AOCI, tax expense (benefit) | 22 | 61 | 121 | |
Total Accumulated Other Comprehensive (Loss) Income | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (2,613) | (1,868) | (1,184) | |
Other comprehensive (loss) income before reclassifications | 951 | (710) | ||
Reclassifications | 79 | (35) | ||
Other comprehensive gain (loss) | 1,030 | (745) | (684) | |
Cumulative effect of change in accounting principle | [1] | (203) | ||
Ending balance | $ (1,786) | $ (2,613) | $ (1,868) | |
[1] | See Note 1 to the consolidated financial statements for discussion regarding the adoption of accounting standards during fiscal year 2018. |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 01, 2018claim | Dec. 14, 2011patent | Jun. 29, 2007 | May 31, 2017claim | Apr. 27, 2018USD ($)subsidiarymanufacturerclaimlandfill | Apr. 29, 2016USD ($)claim | Apr. 28, 2017USD ($) |
Loss Contingencies [Line Items] | |||||||
Accrued litigations charges | $ | $ 900 | $ 1,100 | |||||
Number of manufacturers | manufacturer | 1 | ||||||
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 | ||||||
Penobscot River and Bay Remediation | Minimum | |||||||
Loss Contingencies [Line Items] | |||||||
Cost estimate | $ | $ 25 | ||||||
Penobscot River and Bay Remediation | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Cost estimate | $ | $ 235 | ||||||
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 claimants | claim | 15,800 | ||||||
Number of subsidiaries which supplied pelvic mesh to manufacturer | subsidiary | 2 | ||||||
Settlement consideration received | $ | $ 121 | ||||||
Number of claims settled | claim | 5,000 | 11,000 | |||||
Pelvic Mesh Litigation | Damages from product defects | Subsequent Event | |||||||
Loss Contingencies [Line Items] | |||||||
Number of claims settled | claim | 14,400 | ||||||
Ethicon Patent Infringement Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of patents allegedly infringed upon | patent | 1 | ||||||
Number of claims dismissed | patent | 6 |
Quarterly Financial Data (un104
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 27, 2018 | Jan. 26, 2018 | Oct. 27, 2017 | Jul. 28, 2017 | Apr. 28, 2017 | Jan. 27, 2017 | Oct. 28, 2016 | Jul. 29, 2016 | Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 8,144 | $ 7,369 | $ 7,050 | $ 7,390 | $ 7,916 | $ 7,283 | $ 7,345 | $ 7,166 | $ 29,953 | $ 29,710 | $ 28,833 |
Gross profit | 5,749 | 5,178 | 4,930 | 5,041 | 5,480 | 5,015 | 5,019 | 4,905 | 20,898 | 20,419 | |
Net income (loss) | 1,465 | (1,392) | 2,013 | 1,009 | 1,164 | 820 | 1,111 | 929 | 3,095 | 4,024 | 3,538 |
Net income (loss) attributable to Medtronic | $ 1,460 | $ (1,389) | $ 2,017 | $ 1,016 | $ 1,163 | $ 821 | $ 1,115 | $ 929 | $ 3,104 | $ 4,028 | $ 3,538 |
Basic earnings (loss) per share (in dollars per share) | $ 1.08 | $ (1.03) | $ 1.49 | $ 0.75 | $ 0.85 | $ 0.60 | $ 0.81 | $ 0.67 | $ 2.29 | $ 2.92 | $ 2.51 |
Diluted earnings (loss) per share (in dollars per share) | $ 1.07 | $ (1.03) | $ 1.48 | $ 0.74 | $ 0.84 | $ 0.59 | $ 0.80 | $ 0.66 | $ 2.27 | $ 2.89 | $ 2.48 |
Segment and Geographic Infor105
Segment and Geographic Information , Additional Information (Details) | 12 Months Ended |
Apr. 27, 2018segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Number of reporting segments | 4 |
Segment and Geographic Infor106
Segment and Geographic Information , Net Sales by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 27, 2018 | Jan. 26, 2018 | Oct. 27, 2017 | Jul. 28, 2017 | Apr. 28, 2017 | Jan. 27, 2017 | Oct. 28, 2016 | Jul. 29, 2016 | Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Total | $ 8,144 | $ 7,369 | $ 7,050 | $ 7,390 | $ 7,916 | $ 7,283 | $ 7,345 | $ 7,166 | $ 29,953 | $ 29,710 | $ 28,833 |
Cardiac and Vascular Group | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total | 11,354 | 10,498 | 10,196 | ||||||||
Minimally Invasive Therapies Group | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total | 8,716 | 9,919 | 9,563 | ||||||||
Restorative Therapies Group | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total | 7,743 | 7,366 | 7,210 | ||||||||
Diabetes Group | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total | $ 2,140 | $ 1,927 | $ 1,864 |
Segment and Geographic Infor107
Segment and Geographic Information , Reconciliation of Income Before Provision for Income Taxes from Segments to Consolidated (Details) - USD ($) | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Segment Reporting Information [Line Items] | |||
Interest expense, net | $ 749,000,000 | $ 728,000,000 | $ 955,000,000 |
Amortization of intangible assets | (1,823,000,000) | (1,980,000,000) | (1,931,000,000) |
Acquisition-related items | (104,000,000) | (220,000,000) | (283,000,000) |
Certain litigation charges | (61,000,000) | (300,000,000) | (26,000,000) |
Divestiture-related items | (114,000,000) | 0 | 0 |
Gain on sale of businesses | 697,000,000 | 0 | 0 |
Special charge | (80,000,000) | (100,000,000) | 0 |
Income Before Income Taxes | 5,675,000,000 | 4,602,000,000 | 4,336,000,000 |
Reportable segments | |||
Segment Reporting Information [Line Items] | |||
Segment EBITA | 11,498,000,000 | 11,126,000,000 | 10,697,000,000 |
Reportable segments | Cardiac and Vascular Group | |||
Segment Reporting Information [Line Items] | |||
Segment EBITA | 4,460,000,000 | 4,134,000,000 | 3,986,000,000 |
Reportable segments | Minimally Invasive Therapies Group | |||
Segment Reporting Information [Line Items] | |||
Segment EBITA | 3,346,000,000 | 3,434,000,000 | 3,373,000,000 |
Reportable segments | Restorative Therapies Group | |||
Segment Reporting Information [Line Items] | |||
Segment EBITA | 3,058,000,000 | 2,868,000,000 | 2,671,000,000 |
Reportable segments | Diabetes Group | |||
Segment Reporting Information [Line Items] | |||
Segment EBITA | 634,000,000 | 690,000,000 | 667,000,000 |
Segment reconciling items | |||
Segment Reporting Information [Line Items] | |||
Interest expense, net | (749,000,000) | (728,000,000) | (955,000,000) |
Amortization of intangible assets | (1,823,000,000) | (1,980,000,000) | (1,931,000,000) |
Corporate | (1,437,000,000) | (1,232,000,000) | (1,464,000,000) |
Centralized distribution costs | (1,936,000,000) | (1,543,000,000) | (1,177,000,000) |
Restructuring and associated costs | (107,000,000) | (373,000,000) | (299,000,000) |
Acquisition-related items | (132,000,000) | (230,000,000) | (283,000,000) |
Certain litigation charges | (61,000,000) | (300,000,000) | (26,000,000) |
Divestiture-related items | (115,000,000) | 0 | 0 |
Gain on sale of businesses | 697,000,000 | 0 | 0 |
Special charge | (80,000,000) | (100,000,000) | 0 |
IPR&D impairment | (46,000,000) | 0 | 0 |
Hurricane Maria | (34,000,000) | 0 | 0 |
Impact of inventory step-up | $ 0 | $ (38,000,000) | $ (226,000,000) |
Segment and Geographic Infor108
Segment and Geographic Information , Reconciliation of Assets and Depreciation Expense from Segments to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Segment Reporting Information [Line Items] | |||
Total Assets | $ 91,393 | $ 99,857 | |
Depreciation Expense | 821 | 937 | $ 889 |
Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency Business | Held for sale, not discontinued operations | |||
Segment Reporting Information [Line Items] | |||
Assets held for sale | 6,290 | ||
Reportable segments | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 76,554 | 82,523 | |
Depreciation Expense | 575 | 734 | 721 |
Reportable segments | Cardiac and Vascular Group | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 15,407 | 15,192 | |
Depreciation Expense | 183 | 180 | 172 |
Reportable segments | Minimally Invasive Therapies Group | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 43,002 | 49,249 | |
Depreciation Expense | 217 | 358 | 383 |
Reportable segments | Restorative Therapies Group | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 15,245 | 15,441 | |
Depreciation Expense | 146 | 167 | 135 |
Reportable segments | Diabetes Group | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 2,900 | 2,641 | |
Depreciation Expense | 29 | 29 | 31 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 14,839 | 17,334 | |
Depreciation Expense | $ 246 | $ 203 | $ 168 |
Segment and Geographic Infor109
Segment and Geographic Information , Schedule of Net Sales to External Customers and Property, Plant, and Equipment, Net, by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 27, 2018 | Jan. 26, 2018 | Oct. 27, 2017 | Jul. 28, 2017 | Apr. 28, 2017 | Jan. 27, 2017 | Oct. 28, 2016 | Jul. 29, 2016 | Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 8,144 | $ 7,369 | $ 7,050 | $ 7,390 | $ 7,916 | $ 7,283 | $ 7,345 | $ 7,166 | $ 29,953 | $ 29,710 | $ 28,833 |
Property, plant, and equipment, net | 4,604 | 4,361 | 4,604 | 4,361 | |||||||
Ireland | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 85 | 69 | 79 | ||||||||
Property, plant, and equipment, net | 149 | 143 | 149 | 143 | |||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 15,875 | 16,663 | 16,422 | ||||||||
Property, plant, and equipment, net | 2,927 | 2,434 | 2,927 | 2,434 | |||||||
Rest of world | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 13,993 | 12,978 | 12,332 | ||||||||
Property, plant, and equipment, net | 1,528 | 1,784 | 1,528 | 1,784 | |||||||
Total other countries, excluding Ireland | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 29,868 | 29,641 | $ 28,754 | ||||||||
Property, plant, and equipment, net | $ 4,455 | $ 4,218 | $ 4,455 | $ 4,218 |
Guarantor Financial Informat110
Guarantor Financial Information , Additional Information (Details) - USD ($) $ in Millions | Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 |
Condensed Financial Statements, Captions [Line Items] | ||||
Increase (decrease) in investment in subsidiaries | $ 0 | $ 0 | ||
Increase (decrease) in shareholders' equity balances | 50,822 | 50,330 | $ 51,977 | $ 53,144 |
Revision | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Increase (decrease) in shareholders' equity balances | (86) | $ (86) | $ (86) | |
Medtronic Senior Notes | Reportable Legal Entities | Medtronic, Inc. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Increase (decrease) in investment in subsidiaries | 73,594 | 52,300 | ||
Increase (decrease) in shareholders' equity balances | 41,595 | 12,341 | ||
Medtronic Senior Notes | Reportable Legal Entities | Medtronic, Inc. | Revision | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Increase (decrease) in investment in subsidiaries | (16,000) | |||
Increase (decrease) in shareholders' equity balances | (16,000) | |||
CIFSA Senior Notes | Reportable Legal Entities | Medtronic, Inc. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Increase (decrease) in investment in subsidiaries | 31,144 | 50,580 | ||
Increase (decrease) in shareholders' equity balances | $ 28,920 | 48,890 | ||
CIFSA Senior Notes | Reportable Legal Entities | Medtronic, Inc. | Revision | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Increase (decrease) in investment in subsidiaries | 16,000 | |||
Increase (decrease) in shareholders' equity balances | $ 16,000 |
Guarantor Financial Informat111
Guarantor Financial Information , Consolidating Statement of Comprehensive Income (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 27, 2018 | Jan. 26, 2018 | Oct. 27, 2017 | Jul. 28, 2017 | Apr. 28, 2017 | Jan. 27, 2017 | Oct. 28, 2016 | Jul. 29, 2016 | Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | $ 8,144,000,000 | $ 7,369,000,000 | $ 7,050,000,000 | $ 7,390,000,000 | $ 7,916,000,000 | $ 7,283,000,000 | $ 7,345,000,000 | $ 7,166,000,000 | $ 29,953,000,000 | $ 29,710,000,000 | $ 28,833,000,000 |
Costs and expenses: | |||||||||||
Cost of products sold | 9,055,000,000 | 9,291,000,000 | 9,142,000,000 | ||||||||
Research and development expense | 2,253,000,000 | 2,193,000,000 | 2,224,000,000 | ||||||||
Selling, general, and administrative expense | 9,974,000,000 | 9,711,000,000 | 9,469,000,000 | ||||||||
Amortization of intangible assets | 1,823,000,000 | 1,980,000,000 | 1,931,000,000 | ||||||||
Restructuring charges, net | 30,000,000 | 363,000,000 | 290,000,000 | ||||||||
Acquisition-related items | 104,000,000 | 220,000,000 | 283,000,000 | ||||||||
Certain litigation charges | 61,000,000 | 300,000,000 | 26,000,000 | ||||||||
Divestiture-related items | 114,000,000 | 0 | 0 | ||||||||
Gain on sale of businesses | (697,000,000) | 0 | 0 | ||||||||
Special charge | 80,000,000 | 100,000,000 | 0 | ||||||||
Other expense (income), net | 505,000,000 | 222,000,000 | 107,000,000 | ||||||||
Operating profit | 6,651,000,000 | 5,330,000,000 | 5,361,000,000 | ||||||||
Investment loss | 227,000,000 | 0 | 70,000,000 | ||||||||
Interest income | (397,000,000) | (366,000,000) | (431,000,000) | ||||||||
Interest expense | 1,146,000,000 | 1,094,000,000 | 1,386,000,000 | ||||||||
Interest expense, net | 749,000,000 | 728,000,000 | 955,000,000 | ||||||||
Equity in net (income) loss of subsidiaries | 0 | 0 | 0 | ||||||||
Income before income taxes | 5,675,000,000 | 4,602,000,000 | 4,336,000,000 | ||||||||
Income tax (benefit) provision | 2,580,000,000 | 578,000,000 | 798,000,000 | ||||||||
Net income | 1,465,000,000 | (1,392,000,000) | 2,013,000,000 | 1,009,000,000 | 1,164,000,000 | 820,000,000 | 1,111,000,000 | 929,000,000 | 3,095,000,000 | 4,024,000,000 | 3,538,000,000 |
Net loss attributable to noncontrolling interests | 9,000,000 | 4,000,000 | 0 | ||||||||
Net income attributable to Medtronic | $ 1,460,000,000 | $ (1,389,000,000) | $ 2,017,000,000 | $ 1,016,000,000 | $ 1,163,000,000 | $ 821,000,000 | $ 1,115,000,000 | $ 929,000,000 | 3,104,000,000 | 4,028,000,000 | 3,538,000,000 |
Other comprehensive gain (loss) | 1,030,000,000 | (744,000,000) | (684,000,000) | ||||||||
Other comprehensive loss attributable to non-controlling interests | 9,000,000 | 3,000,000 | |||||||||
Other comprehensive gain (loss), net of tax | (684,000,000) | ||||||||||
Comprehensive income attributable to Medtronic | 4,134,000,000 | 3,283,000,000 | 2,854,000,000 | ||||||||
Consolidating Adjustments | Medtronic Notes | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | (1,197,000,000) | (1,197,000,000) | (1,281,000,000) | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold | (788,000,000) | (793,000,000) | (894,000,000) | ||||||||
Research and development expense | 0 | 0 | 0 | ||||||||
Selling, general, and administrative expense | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 0 | 0 | ||||||||
Acquisition-related items | 0 | 0 | 0 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Divestiture-related items | 0 | ||||||||||
Gain on sale of businesses | 0 | ||||||||||
Special charge | 0 | 0 | |||||||||
Other expense (income), net | (408,000,000) | (423,000,000) | (387,000,000) | ||||||||
Operating profit | (1,000,000) | 19,000,000 | 0 | ||||||||
Investment loss | 0 | 0 | |||||||||
Interest income | 2,020,000,000 | 1,598,000,000 | 960,000,000 | ||||||||
Interest expense | (2,020,000,000) | (1,598,000,000) | (960,000,000) | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Equity in net (income) loss of subsidiaries | 7,398,000,000 | 9,451,000,000 | 8,055,000,000 | ||||||||
Income before income taxes | (7,399,000,000) | (9,432,000,000) | (8,055,000,000) | ||||||||
Income tax (benefit) provision | 0 | 0 | 0 | ||||||||
Net income | (7,399,000,000) | (9,432,000,000) | |||||||||
Net loss attributable to noncontrolling interests | 0 | 0 | |||||||||
Net income attributable to Medtronic | (7,399,000,000) | (9,432,000,000) | (8,055,000,000) | ||||||||
Other comprehensive gain (loss) | (2,772,000,000) | 2,014,000,000 | |||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | 0 | |||||||||
Other comprehensive gain (loss), net of tax | 2,211,000,000 | ||||||||||
Comprehensive income attributable to Medtronic | (10,171,000,000) | (7,418,000,000) | (5,844,000,000) | ||||||||
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 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 0 | 0 | ||||||||
Acquisition-related items | 0 | 0 | 0 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Divestiture-related items | 0 | ||||||||||
Gain on sale of businesses | 0 | ||||||||||
Special charge | 0 | 0 | |||||||||
Other expense (income), net | 0 | 0 | 0 | ||||||||
Operating profit | 0 | 0 | 0 | ||||||||
Investment loss | 0 | 0 | |||||||||
Interest income | 723,000,000 | 805,000,000 | 1,177,000,000 | ||||||||
Interest expense | (723,000,000) | (805,000,000) | (1,177,000,000) | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Equity in net (income) loss of subsidiaries | 10,787,000,000 | 11,319,000,000 | 9,379,000,000 | ||||||||
Income before income taxes | (10,787,000,000) | (11,319,000,000) | (9,379,000,000) | ||||||||
Income tax (benefit) provision | 0 | 0 | 0 | ||||||||
Net income | (10,787,000,000) | (11,319,000,000) | |||||||||
Net loss attributable to noncontrolling interests | 0 | 0 | |||||||||
Net income attributable to Medtronic | (10,787,000,000) | (11,319,000,000) | (9,379,000,000) | ||||||||
Other comprehensive gain (loss) | (2,288,000,000) | 1,814,000,000 | |||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | 0 | |||||||||
Other comprehensive gain (loss), net of tax | 1,309,000,000 | ||||||||||
Comprehensive income attributable to Medtronic | (13,075,000,000) | (9,505,000,000) | (8,070,000,000) | ||||||||
Medtronic plc | Reportable Legal Entities | 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 | 12,000,000 | 12,000,000 | 10,000,000 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 0 | 0 | ||||||||
Acquisition-related items | 0 | 0 | 0 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Divestiture-related items | 0 | ||||||||||
Gain on sale of businesses | 0 | ||||||||||
Special charge | 0 | 0 | |||||||||
Other expense (income), net | 52,000,000 | 18,000,000 | 109,000,000 | ||||||||
Operating profit | (64,000,000) | (30,000,000) | (119,000,000) | ||||||||
Investment loss | 0 | 0 | |||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 247,000,000 | 113,000,000 | 25,000,000 | ||||||||
Interest expense, net | 247,000,000 | 113,000,000 | 25,000,000 | ||||||||
Equity in net (income) loss of subsidiaries | (3,408,000,000) | (4,163,000,000) | (3,673,000,000) | ||||||||
Income before income taxes | 3,097,000,000 | 4,020,000,000 | 3,529,000,000 | ||||||||
Income tax (benefit) provision | (7,000,000) | (8,000,000) | (9,000,000) | ||||||||
Net income | 3,104,000,000 | 4,028,000,000 | |||||||||
Net loss attributable to noncontrolling interests | 0 | 0 | |||||||||
Net income attributable to Medtronic | 3,104,000,000 | 4,028,000,000 | 3,538,000,000 | ||||||||
Other comprehensive gain (loss) | 1,030,000,000 | (745,000,000) | |||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | 0 | |||||||||
Other comprehensive gain (loss), net of tax | (684,000,000) | ||||||||||
Comprehensive income attributable to Medtronic | 4,134,000,000 | 3,283,000,000 | 2,854,000,000 | ||||||||
Medtronic plc | Reportable Legal Entities | 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 | 12,000,000 | 12,000,000 | 10,000,000 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 0 | 0 | ||||||||
Acquisition-related items | 0 | 0 | 0 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Divestiture-related items | 0 | ||||||||||
Gain on sale of businesses | 0 | ||||||||||
Special charge | 0 | 0 | |||||||||
Other expense (income), net | 52,000,000 | 18,000,000 | 109,000,000 | ||||||||
Operating profit | (64,000,000) | (30,000,000) | (119,000,000) | ||||||||
Investment loss | 0 | 0 | |||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 247,000,000 | 113,000,000 | 25,000,000 | ||||||||
Interest expense, net | 247,000,000 | 113,000,000 | 25,000,000 | ||||||||
Equity in net (income) loss of subsidiaries | (3,408,000,000) | (4,163,000,000) | (3,673,000,000) | ||||||||
Income before income taxes | 3,097,000,000 | 4,020,000,000 | 3,529,000,000 | ||||||||
Income tax (benefit) provision | (7,000,000) | (8,000,000) | (9,000,000) | ||||||||
Net income | 3,104,000,000 | 4,028,000,000 | |||||||||
Net loss attributable to noncontrolling interests | 0 | 0 | |||||||||
Net income attributable to Medtronic | 3,104,000,000 | 4,028,000,000 | 3,538,000,000 | ||||||||
Other comprehensive gain (loss) | 1,030,000,000 | (745,000,000) | |||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | 0 | |||||||||
Other comprehensive gain (loss), net of tax | (684,000,000) | ||||||||||
Comprehensive income attributable to Medtronic | 4,134,000,000 | 3,283,000,000 | 2,854,000,000 | ||||||||
Subsidiary Issuer | Reportable Legal Entities | Medtronic Notes | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | 1,198,000,000 | 1,199,000,000 | 1,282,000,000 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold | 959,000,000 | 932,000,000 | 991,000,000 | ||||||||
Research and development expense | 653,000,000 | 636,000,000 | 627,000,000 | ||||||||
Selling, general, and administrative expense | 1,329,000,000 | 1,163,000,000 | 991,000,000 | ||||||||
Amortization of intangible assets | 8,000,000 | 11,000,000 | 12,000,000 | ||||||||
Restructuring charges, net | (7,000,000) | 114,000,000 | 17,000,000 | ||||||||
Acquisition-related items | 60,000,000 | 133,000,000 | 135,000,000 | ||||||||
Certain litigation charges | 24,000,000 | 0 | 0 | ||||||||
Divestiture-related items | 15,000,000 | ||||||||||
Gain on sale of businesses | 0 | ||||||||||
Special charge | 80,000,000 | 100,000,000 | |||||||||
Other expense (income), net | (2,329,000,000) | (2,472,000,000) | (1,784,000,000) | ||||||||
Operating profit | 406,000,000 | 582,000,000 | 293,000,000 | ||||||||
Investment loss | 172,000,000 | 70,000,000 | |||||||||
Interest income | (353,000,000) | (250,000,000) | (237,000,000) | ||||||||
Interest expense | 1,897,000,000 | 1,652,000,000 | 1,906,000,000 | ||||||||
Interest expense, net | 1,544,000,000 | 1,402,000,000 | 1,669,000,000 | ||||||||
Equity in net (income) loss of subsidiaries | (830,000,000) | (1,712,000,000) | (1,405,000,000) | ||||||||
Income before income taxes | (480,000,000) | 892,000,000 | (41,000,000) | ||||||||
Income tax (benefit) provision | 41,000,000 | (124,000,000) | (279,000,000) | ||||||||
Net income | (521,000,000) | 1,016,000,000 | |||||||||
Net loss attributable to noncontrolling interests | 0 | 0 | |||||||||
Net income attributable to Medtronic | (521,000,000) | 1,016,000,000 | 238,000,000 | ||||||||
Other comprehensive gain (loss) | 788,000,000 | (340,000,000) | |||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | 0 | |||||||||
Other comprehensive gain (loss), net of tax | (854,000,000) | ||||||||||
Comprehensive income attributable to Medtronic | 267,000,000 | 676,000,000 | (616,000,000) | ||||||||
Subsidiary Issuer | Reportable Legal Entities | 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 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 0 | 0 | ||||||||
Acquisition-related items | 0 | 0 | 0 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Divestiture-related items | 0 | ||||||||||
Gain on sale of businesses | 0 | ||||||||||
Special charge | 0 | 0 | |||||||||
Other expense (income), net | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||
Operating profit | (2,000,000) | (2,000,000) | (2,000,000) | ||||||||
Investment loss | 0 | 0 | |||||||||
Interest income | (60,000,000) | (82,000,000) | (434,000,000) | ||||||||
Interest expense | 83,000,000 | 104,000,000 | 138,000,000 | ||||||||
Interest expense, net | 23,000,000 | 22,000,000 | (296,000,000) | ||||||||
Equity in net (income) loss of subsidiaries | (4,233,000,000) | (3,581,000,000) | (2,716,000,000) | ||||||||
Income before income taxes | 4,208,000,000 | 3,557,000,000 | 3,010,000,000 | ||||||||
Income tax (benefit) provision | 0 | 0 | 0 | ||||||||
Net income | 4,208,000,000 | 3,557,000,000 | |||||||||
Net loss attributable to noncontrolling interests | 0 | 0 | |||||||||
Net income attributable to Medtronic | 4,208,000,000 | 3,557,000,000 | 3,010,000,000 | ||||||||
Other comprehensive gain (loss) | 228,000,000 | (324,000,000) | |||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | 0 | |||||||||
Other comprehensive gain (loss), net of tax | 59,000,000 | ||||||||||
Comprehensive income attributable to Medtronic | 4,436,000,000 | 3,233,000,000 | 3,069,000,000 | ||||||||
Subsidiary Guarantors | Reportable Legal Entities | 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 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 0 | 0 | ||||||||
Acquisition-related items | 0 | 0 | 0 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Divestiture-related items | 0 | ||||||||||
Gain on sale of businesses | 0 | ||||||||||
Special charge | 0 | 0 | |||||||||
Other expense (income), net | 0 | 0 | 0 | ||||||||
Operating profit | 0 | 0 | 0 | ||||||||
Investment loss | 0 | 0 | |||||||||
Interest income | (482,000,000) | (649,000,000) | (706,000,000) | ||||||||
Interest expense | 234,000,000 | 62,000,000 | 10,000,000 | ||||||||
Interest expense, net | (248,000,000) | (587,000,000) | (696,000,000) | ||||||||
Equity in net (income) loss of subsidiaries | (3,160,000,000) | (3,576,000,000) | (2,977,000,000) | ||||||||
Income before income taxes | 3,408,000,000 | 4,163,000,000 | 3,673,000,000 | ||||||||
Income tax (benefit) provision | 0 | 0 | 0 | ||||||||
Net income | 3,408,000,000 | 4,163,000,000 | |||||||||
Net loss attributable to noncontrolling interests | 0 | 0 | |||||||||
Net income attributable to Medtronic | 3,408,000,000 | 4,163,000,000 | 3,673,000,000 | ||||||||
Other comprehensive gain (loss) | 1,030,000,000 | (745,000,000) | |||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | 0 | |||||||||
Other comprehensive gain (loss), net of tax | (684,000,000) | ||||||||||
Comprehensive income attributable to Medtronic | 4,438,000,000 | 3,418,000,000 | 2,989,000,000 | ||||||||
Subsidiary Guarantors | Reportable Legal Entities | 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 | 2,000,000 | 2,000,000 | 3,000,000 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 0 | 0 | ||||||||
Acquisition-related items | 0 | 0 | 0 | ||||||||
Certain litigation charges | 0 | 0 | 0 | ||||||||
Divestiture-related items | 0 | ||||||||||
Gain on sale of businesses | 0 | ||||||||||
Special charge | 0 | 0 | |||||||||
Other expense (income), net | 0 | 4,000,000 | 14,000,000 | ||||||||
Operating profit | (2,000,000) | (6,000,000) | (17,000,000) | ||||||||
Investment loss | 0 | 0 | |||||||||
Interest income | (498,000,000) | (656,000,000) | (710,000,000) | ||||||||
Interest expense | 234,000,000 | 62,000,000 | 10,000,000 | ||||||||
Interest expense, net | (264,000,000) | (594,000,000) | (700,000,000) | ||||||||
Equity in net (income) loss of subsidiaries | (3,146,000,000) | (3,575,000,000) | (2,990,000,000) | ||||||||
Income before income taxes | 3,408,000,000 | 4,163,000,000 | 3,673,000,000 | ||||||||
Income tax (benefit) provision | 0 | 0 | 0 | ||||||||
Net income | 3,408,000,000 | 4,163,000,000 | |||||||||
Net loss attributable to noncontrolling interests | 0 | 0 | |||||||||
Net income attributable to Medtronic | 3,408,000,000 | 4,163,000,000 | 3,673,000,000 | ||||||||
Other comprehensive gain (loss) | 1,030,000,000 | (745,000,000) | |||||||||
Other comprehensive loss attributable to non-controlling interests | 0 | 0 | |||||||||
Other comprehensive gain (loss), net of tax | (684,000,000) | ||||||||||
Comprehensive income attributable to Medtronic | 4,438,000,000 | 3,418,000,000 | 2,989,000,000 | ||||||||
Subsidiary Non-guarantors | Reportable Legal Entities | Medtronic Notes | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | 29,952,000,000 | 29,708,000,000 | 28,832,000,000 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold | 8,884,000,000 | 9,152,000,000 | 9,045,000,000 | ||||||||
Research and development expense | 1,600,000,000 | 1,557,000,000 | 1,597,000,000 | ||||||||
Selling, general, and administrative expense | 8,633,000,000 | 8,536,000,000 | 8,468,000,000 | ||||||||
Amortization of intangible assets | 1,815,000,000 | 1,969,000,000 | 1,919,000,000 | ||||||||
Restructuring charges, net | 37,000,000 | 249,000,000 | 273,000,000 | ||||||||
Acquisition-related items | 44,000,000 | 87,000,000 | 148,000,000 | ||||||||
Certain litigation charges | 37,000,000 | 300,000,000 | 26,000,000 | ||||||||
Divestiture-related items | 99,000,000 | ||||||||||
Gain on sale of businesses | (697,000,000) | ||||||||||
Special charge | 0 | 0 | |||||||||
Other expense (income), net | 3,190,000,000 | 3,099,000,000 | 2,169,000,000 | ||||||||
Operating profit | 6,310,000,000 | 4,759,000,000 | 5,187,000,000 | ||||||||
Investment loss | 55,000,000 | 0 | |||||||||
Interest income | (1,582,000,000) | (1,065,000,000) | (448,000,000) | ||||||||
Interest expense | 788,000,000 | 865,000,000 | 405,000,000 | ||||||||
Interest expense, net | (794,000,000) | (200,000,000) | (43,000,000) | ||||||||
Equity in net (income) loss of subsidiaries | 0 | 0 | 0 | ||||||||
Income before income taxes | 7,049,000,000 | 4,959,000,000 | 5,230,000,000 | ||||||||
Income tax (benefit) provision | 2,546,000,000 | 710,000,000 | 1,086,000,000 | ||||||||
Net income | 4,503,000,000 | 4,249,000,000 | |||||||||
Net loss attributable to noncontrolling interests | 9,000,000 | 4,000,000 | |||||||||
Net income attributable to Medtronic | 4,512,000,000 | 4,253,000,000 | 4,144,000,000 | ||||||||
Other comprehensive gain (loss) | 954,000,000 | (928,000,000) | |||||||||
Other comprehensive loss attributable to non-controlling interests | 9,000,000 | 3,000,000 | |||||||||
Other comprehensive gain (loss), net of tax | (673,000,000) | ||||||||||
Comprehensive income attributable to Medtronic | 5,466,000,000 | 3,324,000,000 | 3,471,000,000 | ||||||||
Subsidiary Non-guarantors | Reportable Legal Entities | CIFSA Senior Notes | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net sales | 29,953,000,000 | 29,710,000,000 | 28,833,000,000 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold | 9,055,000,000 | 9,291,000,000 | 9,142,000,000 | ||||||||
Research and development expense | 2,253,000,000 | 2,193,000,000 | 2,224,000,000 | ||||||||
Selling, general, and administrative expense | 9,959,000,000 | 9,696,000,000 | 9,455,000,000 | ||||||||
Amortization of intangible assets | 1,823,000,000 | 1,980,000,000 | 1,931,000,000 | ||||||||
Restructuring charges, net | 30,000,000 | 363,000,000 | 290,000,000 | ||||||||
Acquisition-related items | 104,000,000 | 220,000,000 | 283,000,000 | ||||||||
Certain litigation charges | 61,000,000 | 300,000,000 | 26,000,000 | ||||||||
Divestiture-related items | 114,000,000 | ||||||||||
Gain on sale of businesses | (697,000,000) | ||||||||||
Special charge | 80,000,000 | 100,000,000 | |||||||||
Other expense (income), net | 452,000,000 | 199,000,000 | (17,000,000) | ||||||||
Operating profit | 6,719,000,000 | 5,368,000,000 | 5,499,000,000 | ||||||||
Investment loss | 227,000,000 | 70,000,000 | |||||||||
Interest income | (562,000,000) | (433,000,000) | (464,000,000) | ||||||||
Interest expense | 1,305,000,000 | 1,620,000,000 | 2,390,000,000 | ||||||||
Interest expense, net | 743,000,000 | 1,187,000,000 | 1,926,000,000 | ||||||||
Equity in net (income) loss of subsidiaries | 0 | 0 | 0 | ||||||||
Income before income taxes | 5,749,000,000 | 4,181,000,000 | 3,503,000,000 | ||||||||
Income tax (benefit) provision | 2,587,000,000 | 586,000,000 | 807,000,000 | ||||||||
Net income | 3,162,000,000 | 3,595,000,000 | |||||||||
Net loss attributable to noncontrolling interests | 9,000,000 | 4,000,000 | |||||||||
Net income attributable to Medtronic | 3,171,000,000 | 3,599,000,000 | 2,696,000,000 | ||||||||
Other comprehensive gain (loss) | 1,030,000,000 | (744,000,000) | |||||||||
Other comprehensive loss attributable to non-controlling interests | 9,000,000 | 3,000,000 | |||||||||
Other comprehensive gain (loss), net of tax | (684,000,000) | ||||||||||
Comprehensive income attributable to Medtronic | $ 4,201,000,000 | $ 2,854,000,000 | $ 2,012,000,000 |
Guarantor Financial Informat112
Guarantor Financial Information , Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | Apr. 24, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 3,669 | $ 4,967 | $ 2,876 | $ 4,843 |
Investments | 7,558 | 8,741 | ||
Accounts receivable, net | 5,987 | 5,591 | ||
Inventories, net | 3,579 | 3,338 | ||
Intercompany receivable | 0 | 0 | ||
Other current assets | 2,187 | 1,865 | ||
Current assets held for sale | 0 | 371 | ||
Total current assets | 22,980 | 24,873 | ||
Property, plant, and equipment, net | 4,604 | 4,361 | ||
Goodwill | 39,543 | 38,515 | 41,500 | |
Other intangible assets, net | 21,723 | 23,407 | ||
Tax assets | 1,465 | 1,550 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany loans receivable | 0 | 0 | ||
Other assets | 1,078 | 1,232 | ||
Noncurrent assets held for sale | 0 | 5,919 | ||
Total assets | 91,393 | 99,857 | ||
Current liabilities: | ||||
Current debt obligations | 2,058 | 7,520 | ||
Accounts payable | 1,628 | 1,555 | ||
Intercompany payable | 0 | 0 | ||
Accrued compensation | 1,988 | 1,904 | ||
Accrued income taxes | 979 | 633 | ||
Other accrued expenses | 3,431 | 2,618 | ||
Current liabilities held for sale | 0 | 34 | ||
Total current liabilities | 10,084 | 14,264 | ||
Long-term debt | 23,699 | 25,921 | ||
Accrued compensation and retirement benefits | 1,425 | 1,724 | ||
Accrued income taxes | 3,051 | 2,405 | ||
Intercompany loans payable | 0 | 0 | ||
Deferred tax liabilities | 1,423 | 2,978 | ||
Other liabilities | 889 | 1,515 | ||
Noncurrent liabilities held for sale | 0 | 720 | ||
Total liabilities | 40,571 | 49,527 | ||
Shareholders' equity | 50,720 | 50,208 | ||
Noncontrolling interests | 102 | 122 | ||
Total equity | 50,822 | 50,330 | 51,977 | 53,144 |
Total liabilities and equity | 91,393 | 99,857 | ||
Consolidating Adjustments | Medtronic Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | (125) | (133) | ||
Intercompany receivable | (57,446) | (46,827) | ||
Other current assets | 0 | 0 | ||
Current assets held for sale | 0 | |||
Total current assets | (57,571) | (46,960) | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | (195,432) | (160,579) | ||
Intercompany loans receivable | (63,052) | (51,265) | ||
Other assets | 0 | 0 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | (316,055) | (258,804) | ||
Current liabilities: | ||||
Current debt obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | (57,446) | (46,827) | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 0 | 0 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | (57,446) | (46,827) | ||
Long-term debt | 0 | 0 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Intercompany loans payable | (63,052) | (51,265) | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | (120,498) | (98,092) | ||
Shareholders' equity | (195,557) | (160,712) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (195,557) | (160,712) | ||
Total liabilities and equity | (316,055) | (258,804) | ||
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 | (6,940) | (8,491) | ||
Other current assets | 0 | 0 | ||
Current assets held for sale | 0 | |||
Total current assets | (6,940) | (8,491) | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | (151,643) | (157,535) | ||
Intercompany loans receivable | (43,064) | (32,241) | ||
Other assets | 0 | 0 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | (201,647) | (198,267) | ||
Current liabilities: | ||||
Current debt obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | (6,940) | (8,491) | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 0 | 0 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | (6,940) | (8,491) | ||
Long-term debt | 0 | 0 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Intercompany loans payable | (43,064) | (32,241) | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | (50,004) | (40,732) | ||
Shareholders' equity | (151,643) | (157,535) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (151,643) | (157,535) | ||
Total liabilities and equity | (201,647) | (198,267) | ||
Medtronic plc | Reportable Legal Entities | Medtronic Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 263 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Intercompany receivable | 37 | 51 | ||
Other current assets | 6 | 10 | ||
Current assets held for sale | 0 | |||
Total current assets | 43 | 61 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 60,381 | 55,747 | ||
Intercompany loans receivable | 3,000 | 3,000 | ||
Other assets | 0 | 0 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | 63,424 | 58,808 | ||
Current liabilities: | ||||
Current debt obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Accrued compensation | 3 | 9 | ||
Accrued income taxes | 0 | 13 | ||
Other accrued expenses | 16 | 0 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | 19 | 22 | ||
Long-term debt | 0 | 0 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 10 | 10 | ||
Intercompany loans payable | 12,675 | 8,568 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | 12,704 | 8,600 | ||
Shareholders' equity | 50,720 | 50,208 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 50,720 | 50,208 | ||
Total liabilities and equity | 63,424 | 58,808 | ||
Medtronic plc | Reportable Legal Entities | CIFSA Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 263 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Intercompany receivable | 37 | 51 | ||
Other current assets | 6 | 10 | ||
Current assets held for sale | 0 | |||
Total current assets | 43 | 61 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 60,381 | 55,747 | ||
Intercompany loans receivable | 3,000 | 3,000 | ||
Other assets | 0 | 0 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | 63,424 | 58,808 | ||
Current liabilities: | ||||
Current debt obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Accrued compensation | 3 | 9 | ||
Accrued income taxes | 0 | 13 | ||
Other accrued expenses | 16 | 0 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | 19 | 22 | ||
Long-term debt | 0 | 0 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 10 | 10 | ||
Intercompany loans payable | 12,675 | 8,568 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | 12,704 | 8,600 | ||
Shareholders' equity | 50,720 | 50,208 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 50,720 | 50,208 | ||
Total liabilities and equity | 63,424 | 58,808 | ||
Subsidiary Issuer | Reportable Legal Entities | Medtronic Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 20 | 45 | 55 | 1,071 |
Investments | 76 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 165 | 155 | ||
Intercompany receivable | 23,480 | 16,301 | ||
Other current assets | 178 | 227 | ||
Current assets held for sale | 0 | |||
Total current assets | 23,919 | 16,728 | ||
Property, plant, and equipment, net | 1,426 | 1,311 | ||
Goodwill | 1,883 | 1,883 | ||
Other intangible assets, net | 12 | 20 | ||
Tax assets | 385 | 727 | ||
Investment in subsidiaries | 73,594 | 52,300 | ||
Intercompany loans receivable | 6,519 | 6,530 | ||
Other assets | 223 | 434 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | 107,961 | 79,933 | ||
Current liabilities: | ||||
Current debt obligations | 0 | 5,000 | ||
Accounts payable | 381 | 295 | ||
Intercompany payable | 28,401 | 23,380 | ||
Accrued compensation | 787 | 734 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 359 | 361 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | 29,928 | 29,770 | ||
Long-term debt | 20,598 | 21,782 | ||
Accrued compensation and retirement benefits | 902 | 1,120 | ||
Accrued income taxes | 531 | 1,658 | ||
Intercompany loans payable | 14,339 | 13,109 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 68 | 153 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | 66,366 | 67,592 | ||
Shareholders' equity | 41,595 | 12,341 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 41,595 | 12,341 | ||
Total liabilities and equity | 107,961 | 79,933 | ||
Subsidiary Issuer | Reportable Legal Entities | CIFSA Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 33 | 208 | 728 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Current assets held for sale | 0 | |||
Total current assets | 0 | 33 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 31,144 | 50,580 | ||
Intercompany loans receivable | 1,291 | 2,978 | ||
Other assets | 0 | 0 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | 32,435 | 53,591 | ||
Current liabilities: | ||||
Current debt obligations | 0 | 1,176 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 1,283 | 1,269 | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 21 | 23 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | 1,304 | 2,468 | ||
Long-term debt | 2,111 | 2,133 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Intercompany loans payable | 100 | 100 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | 3,515 | 4,701 | ||
Shareholders' equity | 28,920 | 48,890 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 28,920 | 48,890 | ||
Total liabilities and equity | 32,435 | 53,591 | ||
Subsidiary Guarantors | Reportable Legal Entities | Medtronic Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 1 | 5 | 0 | 170 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Current assets held for sale | 0 | |||
Total current assets | 1 | 5 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 61,457 | 52,532 | ||
Intercompany loans receivable | 19,337 | 16,114 | ||
Other assets | 0 | 0 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | 80,795 | 68,651 | ||
Current liabilities: | ||||
Current debt obligations | 1,696 | 901 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 5,542 | 7,111 | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 4 | 4 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | 7,242 | 8,016 | ||
Long-term debt | 844 | 1,842 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Intercompany loans payable | 19,335 | 10,049 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | 27,421 | 19,907 | ||
Shareholders' equity | 53,374 | 48,744 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 53,374 | 48,744 | ||
Total liabilities and equity | 80,795 | 68,651 | ||
Subsidiary Guarantors | Reportable Legal Entities | CIFSA Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 1 | 5 | 0 | 170 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Intercompany receivable | 1,343 | 1,329 | ||
Other current assets | 0 | 0 | ||
Current assets held for sale | 0 | |||
Total current assets | 1,344 | 1,334 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 60,118 | 51,208 | ||
Intercompany loans receivable | 19,337 | 16,114 | ||
Other assets | 0 | 0 | ||
Noncurrent assets held for sale | 0 | |||
Total assets | 80,799 | 68,656 | ||
Current liabilities: | ||||
Current debt obligations | 1,696 | 901 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 5,542 | 7,111 | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 8 | 8 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | 7,246 | 8,020 | ||
Long-term debt | 844 | 1,842 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Intercompany loans payable | 19,335 | 10,050 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Noncurrent liabilities held for sale | 0 | |||
Total liabilities | 27,425 | 19,912 | ||
Shareholders' equity | 53,374 | 48,744 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 53,374 | 48,744 | ||
Total liabilities and equity | 80,799 | 68,656 | ||
Subsidiary Non-guarantors | Reportable Legal Entities | Medtronic Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 3,648 | 4,917 | 2,821 | 3,339 |
Investments | 7,482 | 8,741 | ||
Accounts receivable, net | 5,987 | 5,591 | ||
Inventories, net | 3,539 | 3,316 | ||
Intercompany receivable | 33,929 | 30,475 | ||
Other current assets | 2,003 | 1,628 | ||
Current assets held for sale | 371 | |||
Total current assets | 56,588 | 55,039 | ||
Property, plant, and equipment, net | 3,178 | 3,050 | ||
Goodwill | 37,660 | 36,632 | ||
Other intangible assets, net | 21,711 | 23,387 | ||
Tax assets | 1,080 | 823 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany loans receivable | 34,196 | 25,621 | ||
Other assets | 855 | 798 | ||
Noncurrent assets held for sale | 5,919 | |||
Total assets | 155,268 | 151,269 | ||
Current liabilities: | ||||
Current debt obligations | 362 | 1,619 | ||
Accounts payable | 1,247 | 1,260 | ||
Intercompany payable | 23,503 | 16,336 | ||
Accrued compensation | 1,198 | 1,161 | ||
Accrued income taxes | 979 | 620 | ||
Other accrued expenses | 3,052 | 2,253 | ||
Current liabilities held for sale | 34 | |||
Total current liabilities | 30,341 | 23,283 | ||
Long-term debt | 2,257 | 2,297 | ||
Accrued compensation and retirement benefits | 523 | 604 | ||
Accrued income taxes | 2,510 | 737 | ||
Intercompany loans payable | 16,703 | 19,539 | ||
Deferred tax liabilities | 1,423 | 2,978 | ||
Other liabilities | 821 | 1,362 | ||
Noncurrent liabilities held for sale | 720 | |||
Total liabilities | 54,578 | 51,520 | ||
Shareholders' equity | 100,588 | 99,627 | ||
Noncontrolling interests | 102 | 122 | ||
Total equity | 100,690 | 99,749 | ||
Total liabilities and equity | 155,268 | 151,269 | ||
Subsidiary Non-guarantors | Reportable Legal Entities | CIFSA Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 3,668 | 4,929 | $ 2,668 | $ 3,682 |
Investments | 7,558 | 8,741 | ||
Accounts receivable, net | 5,987 | 5,591 | ||
Inventories, net | 3,579 | 3,338 | ||
Intercompany receivable | 5,560 | 7,111 | ||
Other current assets | 2,181 | 1,855 | ||
Current assets held for sale | 371 | |||
Total current assets | 28,533 | 31,936 | ||
Property, plant, and equipment, net | 4,604 | 4,361 | ||
Goodwill | 39,543 | 38,515 | ||
Other intangible assets, net | 21,723 | 23,407 | ||
Tax assets | 1,465 | 1,550 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany loans receivable | 19,436 | 10,149 | ||
Other assets | 1,078 | 1,232 | ||
Noncurrent assets held for sale | 5,919 | |||
Total assets | 116,382 | 117,069 | ||
Current liabilities: | ||||
Current debt obligations | 362 | 5,443 | ||
Accounts payable | 1,628 | 1,555 | ||
Intercompany payable | 115 | 111 | ||
Accrued compensation | 1,985 | 1,895 | ||
Accrued income taxes | 979 | 620 | ||
Other accrued expenses | 3,386 | 2,587 | ||
Current liabilities held for sale | 34 | |||
Total current liabilities | 8,455 | 12,245 | ||
Long-term debt | 20,744 | 21,946 | ||
Accrued compensation and retirement benefits | 1,425 | 1,724 | ||
Accrued income taxes | 3,041 | 2,395 | ||
Intercompany loans payable | 10,954 | 13,523 | ||
Deferred tax liabilities | 1,423 | 2,978 | ||
Other liabilities | 889 | 1,515 | ||
Noncurrent liabilities held for sale | 720 | |||
Total liabilities | 46,931 | 57,046 | ||
Shareholders' equity | 69,349 | 59,901 | ||
Noncontrolling interests | 102 | 122 | ||
Total equity | 69,451 | 60,023 | ||
Total liabilities and equity | $ 116,382 | $ 117,069 |
Guarantor Financial Informat113
Guarantor Financial Information , Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Operating Activities: | |||
Net cash provided by operating activities | $ 4,684 | $ 6,880 | $ 5,218 |
Investing Activities: | |||
Acquisitions, net of cash acquired | (137) | (1,324) | (1,213) |
Proceeds from sale of businesses | 6,058 | 0 | 0 |
Additions to property, plant, and equipment | (1,068) | (1,254) | (1,046) |
Purchases of investments | (3,200) | (4,371) | (5,406) |
Sales and maturities of investments | 4,227 | 5,356 | 9,924 |
Sales of subsidiaries | 0 | ||
Capital contributions paid | 0 | 0 | 0 |
Other investing activities, net | (22) | 22 | (14) |
Net cash provided by (used in) investing activities | 5,858 | (1,571) | 2,245 |
Financing Activities: | |||
Acquisition-related contingent consideration | (48) | (69) | (22) |
Change in current debt obligations, net | (249) | 906 | 7 |
Repayment of short-term borrowings (maturities greater than 90 days) | (45) | (2) | (139) |
Proceeds from short-term borrowings (maturities greater than 90 days) | 1 | 12 | 139 |
Issuance of long-term debt | 21 | 2,140 | 0 |
Payments on long-term debt | (7,370) | (863) | (5,132) |
Dividends to shareholders | (2,494) | (2,376) | (2,139) |
Issuance of ordinary shares | 403 | 428 | 491 |
Repurchase of ordinary shares | (2,171) | (3,544) | (2,830) |
Net intercompany loan borrowings (repayments) | 0 | 0 | 0 |
Intercompany dividend paid | 0 | 0 | 0 |
Capital contributions received | 0 | 0 | 0 |
Other financing activities | (2) | 85 | 82 |
Net cash used in financing activities | (11,954) | (3,283) | (9,543) |
Effect of exchange rate changes on cash and cash equivalents | 114 | 65 | 113 |
Net change in cash and cash equivalents | (1,298) | 2,091 | (1,967) |
Cash and cash equivalents at beginning of period | 4,967 | 2,876 | 4,843 |
Cash and cash equivalents at end of period | 3,669 | 4,967 | 2,876 |
Consolidating Adjustments | Medtronic Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | (10,572) | (887) | (812) |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | 0 | 0 |
Proceeds from sale of businesses | 0 | ||
Additions to property, plant, and equipment | 0 | 0 | 0 |
Purchases of investments | 47 | 162 | 0 |
Sales and maturities of investments | (47) | (162) | 0 |
Capital contributions paid | 4,259 | 248 | 9,870 |
Other investing activities, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 4,259 | 248 | 9,870 |
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) | 0 | 0 | 0 |
Intercompany dividend paid | 10,572 | 887 | 812 |
Capital contributions received | (4,259) | (248) | (9,870) |
Other financing activities | 0 | 0 | 0 |
Net cash used in financing activities | 6,313 | 639 | (9,058) |
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 | (1,048) | (1,997) | (4,005) |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | 0 | 53 |
Proceeds from sale of businesses | 0 | ||
Additions to property, plant, and equipment | 0 | 0 | 0 |
Purchases of investments | 25 | 0 | 0 |
Sales and maturities of investments | (25) | 0 | 0 |
Sales of subsidiaries | (53) | ||
Capital contributions paid | 5,757 | 537 | 5,679 |
Other investing activities, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 5,757 | 537 | 5,679 |
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) | 0 | 0 | 0 |
Intercompany dividend paid | 1,048 | 1,997 | 4,005 |
Capital contributions received | (5,757) | (537) | (5,679) |
Other financing activities | 0 | 0 | 0 |
Net cash used in financing activities | (4,709) | 1,460 | (1,674) |
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 | Reportable Legal Entities | Medtronic Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 155 | 842 | 297 |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | 0 | 0 |
Proceeds from sale of businesses | 0 | ||
Additions to property, plant, and equipment | 0 | 0 | 0 |
Purchases of investments | 0 | 0 | 0 |
Sales and maturities of investments | 0 | 0 | 0 |
Capital contributions paid | 0 | 0 | 0 |
Other investing activities, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
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 | (2,494) | (2,376) | (2,139) |
Issuance of ordinary shares | 403 | 428 | 491 |
Repurchase of ordinary shares | (2,171) | (3,544) | (2,830) |
Net intercompany loan borrowings (repayments) | 4,107 | 4,650 | 3,918 |
Intercompany dividend paid | 0 | 0 | 0 |
Capital contributions received | 0 | 0 | 0 |
Other financing activities | 0 | 0 | 0 |
Net cash used in financing activities | (155) | (842) | (560) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 | (263) |
Cash and cash equivalents at beginning of period | 0 | 0 | 263 |
Cash and cash equivalents at end of period | 0 | 0 | 0 |
Medtronic plc | Reportable Legal Entities | CIFSA Senior Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 155 | 842 | 297 |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | 0 | 0 |
Proceeds from sale of businesses | 0 | ||
Additions to property, plant, and equipment | 0 | 0 | 0 |
Purchases of investments | 0 | 0 | 0 |
Sales and maturities of investments | 0 | 0 | 0 |
Sales of subsidiaries | 0 | ||
Capital contributions paid | 0 | 0 | 0 |
Other investing activities, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
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 | (2,494) | (2,376) | (2,139) |
Issuance of ordinary shares | 403 | 428 | 491 |
Repurchase of ordinary shares | (2,171) | (3,544) | (2,830) |
Net intercompany loan borrowings (repayments) | 4,107 | 4,650 | 3,918 |
Intercompany dividend paid | 0 | 0 | 0 |
Capital contributions received | 0 | 0 | 0 |
Other financing activities | 0 | 0 | 0 |
Net cash used in financing activities | (155) | (842) | (560) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 | (263) |
Cash and cash equivalents at beginning of period | 0 | 0 | 263 |
Cash and cash equivalents at end of period | 0 | 0 | 0 |
Subsidiary Issuer | Reportable Legal Entities | Medtronic Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | (1,567) | 1,902 | 402 |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | (940) | (526) |
Proceeds from sale of businesses | 0 | ||
Additions to property, plant, and equipment | (340) | (369) | (334) |
Purchases of investments | (98) | 0 | 0 |
Sales and maturities of investments | 25 | 210 | 0 |
Capital contributions paid | (59) | (248) | (11) |
Other investing activities, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | (472) | (1,347) | (871) |
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 | 150 | |
Payments on long-term debt | (6,166) | (500) | (2,988) |
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) | 8,180 | (255) | (2,459) |
Intercompany dividend paid | 0 | 0 | 0 |
Capital contributions received | 0 | 0 | 4,900 |
Other financing activities | 0 | 40 | 0 |
Net cash used in financing activities | 2,014 | (565) | (547) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | (25) | (10) | (1,016) |
Cash and cash equivalents at beginning of period | 45 | 55 | 1,071 |
Cash and cash equivalents at end of period | 20 | 45 | 55 |
Subsidiary Issuer | Reportable Legal Entities | CIFSA Senior Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 974 | 1,904 | 4,208 |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | 0 | 0 |
Proceeds from sale of businesses | 0 | ||
Additions to property, plant, and equipment | 0 | 0 | 0 |
Purchases of investments | 0 | 0 | 0 |
Sales and maturities of investments | 0 | 0 | 0 |
Sales of subsidiaries | 0 | ||
Capital contributions paid | (1,557) | (537) | (720) |
Other investing activities, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | (1,557) | (537) | (720) |
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 | (1,150) | 0 | (2,121) |
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) | 1,700 | (1,542) | (1,887) |
Intercompany dividend paid | 0 | 0 | 0 |
Capital contributions received | 0 | 0 | 0 |
Other financing activities | 0 | 0 | 0 |
Net cash used in financing activities | 550 | (1,542) | (4,008) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | (33) | (175) | (520) |
Cash and cash equivalents at beginning of period | 33 | 208 | 728 |
Cash and cash equivalents at end of period | 0 | 33 | 208 |
Subsidiary Guarantors | Reportable Legal Entities | Medtronic Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 249 | 302 | 696 |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | 0 | 0 |
Proceeds from sale of businesses | 0 | ||
Additions to property, plant, and equipment | 0 | 0 | 0 |
Purchases of investments | (25) | 0 | 0 |
Sales and maturities of investments | 0 | 0 | 0 |
Capital contributions paid | (4,200) | 0 | (4,959) |
Other investing activities, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | (4,225) | 0 | (4,959) |
Financing Activities: | |||
Acquisition-related contingent consideration | 0 | 0 | 0 |
Change in current debt obligations, net | (205) | 901 | 0 |
Repayment of short-term borrowings (maturities greater than 90 days) | 0 | 0 | (139) |
Proceeds from short-term borrowings (maturities greater than 90 days) | 0 | 0 | 139 |
Issuance of long-term debt | 0 | 1,850 | |
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) | 4,177 | (3,048) | 4,093 |
Intercompany dividend paid | 0 | 0 | 0 |
Capital contributions received | 0 | 0 | 0 |
Other financing activities | 0 | 0 | 0 |
Net cash used in financing activities | 3,972 | (297) | 4,093 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | (4) | 5 | (170) |
Cash and cash equivalents at beginning of period | 5 | 0 | 170 |
Cash and cash equivalents at end of period | 1 | 5 | 0 |
Subsidiary Guarantors | Reportable Legal Entities | CIFSA Senior Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 264 | 302 | 604 |
Investing Activities: | |||
Acquisitions, net of cash acquired | 0 | 0 | 0 |
Proceeds from sale of businesses | 0 | ||
Additions to property, plant, and equipment | 0 | 0 | 0 |
Purchases of investments | (25) | 0 | 0 |
Sales and maturities of investments | 0 | 0 | 0 |
Sales of subsidiaries | 53 | ||
Capital contributions paid | (4,200) | 0 | (4,959) |
Other investing activities, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | (4,225) | 0 | (4,906) |
Financing Activities: | |||
Acquisition-related contingent consideration | 0 | 0 | 0 |
Change in current debt obligations, net | (205) | 901 | 0 |
Repayment of short-term borrowings (maturities greater than 90 days) | 0 | 0 | (139) |
Proceeds from short-term borrowings (maturities greater than 90 days) | 0 | 0 | 139 |
Issuance of long-term debt | 0 | 1,850 | |
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) | 4,162 | (3,048) | 4,132 |
Intercompany dividend paid | 0 | 0 | 0 |
Capital contributions received | 0 | 0 | 0 |
Other financing activities | 0 | 0 | 0 |
Net cash used in financing activities | 3,957 | (297) | 4,132 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | (4) | 5 | (170) |
Cash and cash equivalents at beginning of period | 5 | 0 | 170 |
Cash and cash equivalents at end of period | 1 | 5 | 0 |
Subsidiary Non-guarantors | Reportable Legal Entities | Medtronic Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 16,419 | 4,721 | 4,635 |
Investing Activities: | |||
Acquisitions, net of cash acquired | (137) | (384) | (687) |
Proceeds from sale of businesses | 6,058 | ||
Additions to property, plant, and equipment | (728) | (885) | (712) |
Purchases of investments | (3,124) | (4,533) | (5,406) |
Sales and maturities of investments | 4,249 | 5,308 | 9,924 |
Capital contributions paid | 0 | 0 | (4,900) |
Other investing activities, net | (22) | 22 | (14) |
Net cash provided by (used in) investing activities | 6,296 | (472) | (1,795) |
Financing Activities: | |||
Acquisition-related contingent consideration | (48) | (69) | (22) |
Change in current debt obligations, net | (44) | 5 | 7 |
Repayment of short-term borrowings (maturities greater than 90 days) | (45) | (2) | 0 |
Proceeds from short-term borrowings (maturities greater than 90 days) | 1 | 12 | 0 |
Issuance of long-term debt | 21 | 140 | |
Payments on long-term debt | (1,204) | (363) | (2,144) |
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) | (16,464) | (1,347) | (5,552) |
Intercompany dividend paid | (10,572) | (887) | (812) |
Capital contributions received | 4,259 | 248 | 4,970 |
Other financing activities | (2) | 45 | 82 |
Net cash used in financing activities | (24,098) | (2,218) | (3,471) |
Effect of exchange rate changes on cash and cash equivalents | 114 | 65 | 113 |
Net change in cash and cash equivalents | (1,269) | 2,096 | (518) |
Cash and cash equivalents at beginning of period | 4,917 | 2,821 | 3,339 |
Cash and cash equivalents at end of period | 3,648 | 4,917 | 2,821 |
Subsidiary Non-guarantors | Reportable Legal Entities | CIFSA Senior Notes | |||
Operating Activities: | |||
Net cash provided by operating activities | 4,339 | 5,829 | 4,114 |
Investing Activities: | |||
Acquisitions, net of cash acquired | (137) | (1,324) | (1,266) |
Proceeds from sale of businesses | 6,058 | ||
Additions to property, plant, and equipment | (1,068) | (1,254) | (1,046) |
Purchases of investments | (3,200) | (4,371) | (5,406) |
Sales and maturities of investments | 4,252 | 5,356 | 9,924 |
Sales of subsidiaries | 0 | ||
Capital contributions paid | 0 | 0 | 0 |
Other investing activities, net | (22) | 22 | (14) |
Net cash provided by (used in) investing activities | 5,883 | (1,571) | 2,192 |
Financing Activities: | |||
Acquisition-related contingent consideration | (48) | (69) | (22) |
Change in current debt obligations, net | (44) | 5 | 7 |
Repayment of short-term borrowings (maturities greater than 90 days) | (45) | (2) | 0 |
Proceeds from short-term borrowings (maturities greater than 90 days) | 1 | 12 | 0 |
Issuance of long-term debt | 21 | 290 | |
Payments on long-term debt | (6,220) | (863) | (3,011) |
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) | (9,969) | (60) | (6,163) |
Intercompany dividend paid | (1,048) | (1,997) | (4,005) |
Capital contributions received | 5,757 | 537 | 5,679 |
Other financing activities | (2) | 85 | 82 |
Net cash used in financing activities | (11,597) | (2,062) | (7,433) |
Effect of exchange rate changes on cash and cash equivalents | 114 | 65 | 113 |
Net change in cash and cash equivalents | (1,261) | 2,261 | (1,014) |
Cash and cash equivalents at beginning of period | 4,929 | 2,668 | 3,682 |
Cash and cash equivalents at end of period | $ 3,668 | $ 4,929 | $ 2,668 |
Schedule II (Details)
Schedule II (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2018 | Apr. 28, 2017 | Apr. 29, 2016 | |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Fiscal Year | $ 155 | $ 161 | $ 144 |
Charges to Income | 52 | 39 | 49 |
Charges to Other Accounts | 0 | 0 | 0 |
Other Changes (Debit) Credit | (14) | (45) | (32) |
Balance at End of Fiscal Year | 193 | 155 | 161 |
Inventory Reserve | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Fiscal Year | 443 | 426 | 413 |
Charges to Income | 170 | 155 | 164 |
Charges to Other Accounts | 0 | 28 | 10 |
Other Changes (Debit) Credit | (161) | (166) | (161) |
Balance at End of Fiscal Year | 452 | 443 | 426 |
Deferred Tax Valuation Allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Fiscal Year | 6,311 | 7,032 | 5,607 |
Charges to Income | 434 | 101 | 1,194 |
Charges to Other Accounts | 21 | 6 | 4 |
Other Changes (Debit) Credit | (171) | (524) | (88) |
Effects of currency fluctuations | 571 | (304) | 315 |
Balance at End of Fiscal Year | $ 7,166 | $ 6,311 | $ 7,032 |