Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 25, 2019 | Feb. 27, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Medtronic plc | |
Entity Central Index Key | 1,613,103 | |
Document Period End Date | Jan. 25, 2019 | |
Current Fiscal Year End Date | --04-26 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Ordinary Shares Outstanding | 1,341,150,970 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,019 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 7,546 | $ 7,369 | $ 22,411 | $ 21,809 |
Costs and expenses: | ||||
Cost of products sold | 2,265 | 2,194 | 6,672 | 6,669 |
Research and development expense | 561 | 559 | 1,736 | 1,664 |
Selling, general, and administrative expense | 2,596 | 2,523 | 7,798 | 7,642 |
Amortization of intangible assets | 436 | 461 | 1,327 | 1,375 |
Restructuring charges, net | 26 | 7 | 112 | 23 |
Certain litigation charges | 63 | 61 | 166 | 61 |
Gain on sale of businesses | 0 | 0 | 0 | (697) |
Other operating expense, net | 57 | 128 | 278 | 360 |
Operating profit (loss) | 1,542 | 1,436 | 4,322 | 4,712 |
Other non-operating (income) expense, net | (71) | 139 | (309) | (67) |
Interest expense | 243 | 270 | 726 | 829 |
Income before income taxes | 1,370 | 1,027 | 3,905 | 3,950 |
Income tax provision | 99 | 2,419 | 437 | 2,320 |
Net income (loss) | 1,271 | (1,392) | 3,468 | 1,630 |
Net (income) loss attributable to noncontrolling interests | (2) | 3 | (9) | 14 |
Net income (loss) attributable to Medtronic | $ 1,269 | $ (1,389) | $ 3,459 | $ 1,644 |
Basic earnings (loss) per share (usd per share) | $ 0.95 | $ (1.03) | $ 2.57 | $ 1.21 |
Diluted earnings (loss) per share (usd per share) | $ 0.94 | $ (1.03) | $ 2.54 | $ 1.20 |
Basic weighted average shares outstanding (shares) | 1,342.8 | 1,354 | 1,348.1 | 1,357.2 |
Diluted weighted average shares outstanding (shares) | 1,352.7 | 1,354 | 1,359.5 | 1,368.9 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,271 | $ (1,392) | $ 3,468 | $ 1,630 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on available-for-sale securities | 32 | (14) | 23 | 41 |
Currency translation | 128 | 897 | (1,127) | 1,525 |
Net change in retirement obligations | 17 | (3) | 65 | 11 |
Unrealized (loss) gain on derivatives | (23) | (202) | 317 | (346) |
Other comprehensive income (loss) | 154 | 678 | (722) | 1,231 |
Comprehensive income (loss) including noncontrolling interests | 1,425 | (714) | 2,746 | 2,861 |
Comprehensive (income) loss attributable to noncontrolling interests | (2) | 3 | (6) | 14 |
Comprehensive income (loss) attributable to Medtronic | $ 1,423 | $ (711) | $ 2,740 | $ 2,875 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jan. 25, 2019 | Apr. 27, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 3,703 | $ 3,669 |
Investments | 5,439 | 7,558 |
Accounts receivable, less allowances of $197 and $193, respectively | 5,854 | 5,987 |
Inventories, net | 3,866 | 3,579 |
Other current assets | 2,015 | 2,187 |
Total current assets | 20,877 | 22,980 |
Property, plant, and equipment | 10,746 | 10,259 |
Accumulated depreciation | (6,153) | (5,655) |
Property, plant, and equipment, net | 4,593 | 4,604 |
Goodwill | 40,003 | 39,543 |
Other intangible assets, net | 20,835 | 21,723 |
Tax assets | 1,496 | 1,465 |
Other assets | 926 | 1,078 |
Total assets | 88,730 | 91,393 |
Current liabilities: | ||
Current debt obligations | 1,356 | 2,058 |
Accounts payable | 1,706 | 1,628 |
Accrued compensation | 1,796 | 1,988 |
Accrued income taxes | 648 | 979 |
Other accrued expenses | 3,347 | 3,431 |
Total current liabilities | 8,853 | 10,084 |
Long-term debt | 23,674 | 23,699 |
Accrued compensation and retirement benefits | 1,313 | 1,425 |
Accrued income taxes | 2,874 | 3,051 |
Deferred tax liabilities | 1,356 | 1,423 |
Other liabilities | 719 | 889 |
Total liabilities | 38,789 | 40,571 |
Commitments and contingencies (Note 17) | ||
Shareholders’ equity: | ||
Ordinary shares— par value $0.0001, 2.6 billion shares authorized, 1,340,592,569 and 1,354,218,154 shares issued and outstanding, respectively | 0 | 0 |
Additional paid-in capital | 26,518 | 28,127 |
Retained earnings | 25,769 | 24,379 |
Accumulated other comprehensive loss | (2,458) | (1,786) |
Total shareholders’ equity | 49,829 | 50,720 |
Noncontrolling interests | 112 | 102 |
Total equity | 49,941 | 50,822 |
Total liabilities and equity | $ 88,730 | $ 91,393 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jan. 25, 2019 | Apr. 27, 2018 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 197 | $ 193 |
Ordinary shares, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares authorized (shares) | 2,600,000,000 | 2,600,000,000 |
Ordinary shares issued (shares) | 1,340,592,569 | 1,354,218,154 |
Ordinary shares outstanding (shares) | 1,340,592,569 | 1,354,218,154 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jan. 25, 2019 | Jan. 26, 2018 | |
Operating Activities: | ||
Net income | $ 3,468 | $ 1,630 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,992 | 1,980 |
Provision for doubtful accounts | 55 | 36 |
Deferred income taxes | (205) | (1,042) |
Stock-based compensation | 228 | 270 |
Gain on sale of businesses | 0 | (697) |
Investment loss | 0 | 227 |
Other, net | 111 | 12 |
Change in operating assets and liabilities, net of acquisitions and divestitures: | ||
Accounts receivable, net | (140) | 19 |
Inventories, net | (367) | (318) |
Accounts payable and accrued liabilities | 211 | 13 |
Other operating assets and liabilities | (433) | 1,516 |
Net cash provided by operating activities | 4,920 | 3,646 |
Investing Activities: | ||
Acquisitions, net of cash acquired | (1,615) | (111) |
Proceeds from sale of businesses | 0 | 6,058 |
Additions to property, plant, and equipment | (799) | (776) |
Purchases of investments | (1,987) | (2,479) |
Sales and maturities of investments | 4,159 | 3,060 |
Other investing activities | (3) | (5) |
Net cash (used in) provided by investing activities | (245) | 5,747 |
Financing Activities: | ||
Change in current debt obligations, net | (696) | (391) |
Issuance of long-term debt | 3 | 21 |
Payments on long-term debt | (29) | (4,167) |
Dividends to shareholders | (2,022) | (1,870) |
Issuance of ordinary shares | 891 | 333 |
Repurchase of ordinary shares | (2,728) | (1,964) |
Other financing activities | 10 | (88) |
Net cash used in financing activities | (4,571) | (8,126) |
Effect of exchange rate changes on cash and cash equivalents | (70) | 124 |
Net change in cash and cash equivalents | 34 | 1,391 |
Cash and cash equivalents at beginning of period | 3,669 | 4,967 |
Cash and cash equivalents at end of period | 3,703 | 6,358 |
Cash paid for: | ||
Income taxes | 1,206 | 911 |
Interest | $ 540 | $ 651 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jan. 25, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of Medtronic plc and its subsidiaries (Medtronic plc, Medtronic, or the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S.) (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the consolidated financial statements include all of the adjustments necessary for a fair statement in conformity with U.S. GAAP. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. For the purpose of providing more concise consolidated statements of income, amounts previously reported in acquisition-related items were reclassified to selling, general, and administrative expense and other operating expense, net; amounts previously reported in divestiture-related items were reclassified to selling, general, and administrative expense; amounts previously reported in special charge were reclassified to other operating expense, net , and amounts previously reported in investment loss and interest income were reclassified to other non-operating (income) expense, net . Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. The accompanying unaudited 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. The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements of the Company and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended April 27, 2018 . The Company’s fiscal years 2019 , 2018 , and 2017 will end or ended on April 26, 2019 , April 27, 2018 , and April 28, 2017 , respectively. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Jan. 25, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted In May 2014, the Financial Accounting Standards Board (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. The Company adopted this guidance using the modified retrospective method in the first quarter of fiscal year 2019, and elected to apply the guidance only to contracts that were not completed as of the date of initial application. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. 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. The Company adopted this guidance in the first quarter of fiscal year 2019 on a prospective basis. As a result of the adoption, the Company reclassified $47 million from accumulated other comprehensive loss to the opening balance of retained earnings as of April 28, 2018. In March 2017, the FASB issued guidance which changes the financial statement presentation requirements for pension and other postretirement benefit expense. While service cost will continue to be recognized in the same financial statement line items as other current employee compensation costs, the guidance requires all other non-service components of net benefit costs to be classified and presented outside of income from operations. The Company adopted this guidance in the first quarter of fiscal year 2019, and the consolidated statements of income were retrospectively adjusted. For the three and nine months ended January 26, 2018 , the Company reclassified $10 million of expense and $4 million of income, respectively, of non-service components of net periodic benefit costs, which were previously presented as a component of operating profit, to other non-operating (income) expense, net . In August 2018, the SEC adopted a final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, that amends certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. The amendments also expanded the disclosure requirements on the analysis of shareholders' equity for interim financial statements, in which registrants must now analyze changes in shareholders’ equity, in the form of reconciliation, for the current and comparative year-to-date periods, with subtotals for each interim period. This final rule was effective on November 5, 2018. The Company has adopted all relevant disclosure requirements, with the exception of the shareholders’ equity interim disclosures, which is allowed to be adopted in a future interim period. Not Yet Adopted 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 will be adopted using the modified retrospective method by applying the new guidance as of the transition date with a cumulative-effect adjustment to the opening balance of retained earnings. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020. 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. |
Revenue
Revenue | 9 Months Ended |
Jan. 25, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company's revenues are principally derived from device-based medical therapies and services related to cardiac rhythm disorders, cardiovascular disease, renal disease, neurological disorders and diseases, spinal conditions and musculoskeletal trauma, chronic pain, urological and digestive disorders, ear, nose, and throat conditions, and diabetes conditions as well as advanced and general surgical care products, respiratory and monitoring solutions, and neurological surgery technologies. The Company's primary customers include hospitals, clinics, third-party health care providers, distributors, and other institutions, including governmental health care programs and group purchasing organizations. The table below illustrates net sales by segment and division for the three and nine months ended January 25, 2019 and January 26, 2018 : Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Cardiac Rhythm & Heart Failure $ 1,397 $ 1,457 $ 4,295 $ 4,314 Coronary & Structural Heart 913 886 2,736 2,557 Aortic, Peripheral & Venous 476 457 1,424 1,348 Cardiac and Vascular Group 2,786 2,800 8,455 8,219 Surgical Innovations 1,434 1,384 4,224 4,024 Respiratory, Gastrointestinal, & Renal 690 657 1,999 2,455 Minimally Invasive Therapies Group 2,124 2,041 6,223 6,479 Spine 655 661 1,963 1,969 Brain Therapies 650 585 1,867 1,682 Specialty Therapies 407 398 1,196 1,132 Pain Therapies 314 300 942 833 Restorative Therapies Group 2,026 1,944 5,968 5,616 Diabetes Group 610 584 1,765 1,495 Total $ 7,546 $ 7,369 $ 22,411 $ 21,809 The table below illustrates net sales by market geography for each segment for the three and nine months ended January 25, 2019 and January 26, 2018 : U.S. (1) Non-U.S. Developed Markets (2) Emerging Markets (3) Three months ended Three months ended Three months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Cardiac and Vascular Group $ 1,369 $ 1,395 $ 924 $ 934 $ 493 $ 471 Minimally Invasive Therapies Group 930 862 796 807 398 372 Restorative Therapies Group 1,354 1,300 435 429 237 215 Diabetes Group 348 355 213 185 49 44 Total $ 4,001 $ 3,912 $ 2,368 $ 2,355 $ 1,177 $ 1,102 U.S. (1) Non-U.S. Developed Markets (2) Emerging Markets (3) Nine months ended Nine months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Cardiac and Vascular Group $ 4,240 $ 4,151 $ 2,766 $ 2,716 $ 1,449 $ 1,352 Minimally Invasive Therapies Group 2,659 2,902 2,396 2,455 1,168 1,122 Restorative Therapies Group 4,005 3,779 1,275 1,217 688 620 Diabetes Group 1,006 856 619 521 140 118 Total $ 11,910 $ 11,688 $ 7,056 $ 6,909 $ 3,445 $ 3,212 (1) U.S. includes the United States and U.S. territories. (2) Non-U.S. developed markets include Japan, Australia, New Zealand, Korea, Canada, and the countries of Western Europe. (3) Emerging markets include the countries of the Middle East, Africa, Latin America, Eastern Europe, and the countries of Asia that are not included in the non-U.S. developed markets, as defined above. 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. The Company recognizes revenue when control is transferred to the 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, control is transferred when the product is used or implanted. Payment terms vary depending on the country of sale, type of customer, and type of product. If a contract contains more than one performance obligation, the transaction price is allocated to each performance obligation based on relative standalone selling price. Shipping and handling is treated as a fulfillment activity rather than a promised service, and therefore, is not considered a performance obligation. Taxes assessed by a governmental authority that are both imposed on, and concurrent with, a specific revenue producing transaction and collected by the Company from customers (for example, sales, use, value added, and some excise taxes) are not included in revenue. For contracts that have an original duration of one year or less, the Company uses the practical expedient applicable to such contracts and does not adjust the transaction price for the time value of money. The amount of revenue recognized reflects 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, the stated rebate rates, and other relevant information. The Company records adjustments to rebates and returns reserves as increases or decreases of revenue. At January 25, 2019 , $715 million of rebates were classified as other accrued expenses and $426 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheets. At April 27, 2018 , $614 million of rebates were classified as other accrued expenses and $376 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheets. The Company includes obligations for returns in other accrued expenses in the consolidated balance sheets and the right-of-return asset in o ther current assets in the consolidated balance sheets. The right-of-return asset at January 25, 2019 and right-of-return liability at January 25, 2019 and April 27, 2018 were no t material. There was no right-of-return asset at April 27, 2018 as the liability was recorded net of the asset under previous guidance. For the three and nine months ended January 25, 2019 , adjustments to rebate and return reserves recognized in revenue that were included in the rebate and return reserves at the beginning of the period were no t material. The Company offers warranties on various products. For standard, assurance-type warranties, the Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. The amount of the reserve is equal to the net costs to repair or otherwise satisfy the obligation. The Company includes the warranty obligation in other accrued expenses and other liabilities in the consolidated balance sheets. For extended, service-type warranties, a portion of the transaction price is allocated to the performance obligation. Warranty obligations at January 25, 2019 and April 27, 2018 were no t material. Deferred Revenue and Remaining Performance Obligations The Company records a deferred revenue liability if a customer pays consideration before the Company transfers a good or service to the customer. Deferred revenue primarily represents remote monitoring services and equipment maintenance, for which consideration is received at the same time as consideration for the device or equipment. Deferred revenue also includes extended, service-type warranties. Revenue related to remote monitoring services, equipment maintenance, and service-type warranties is recognized over the service period as time elapses. Deferred revenue at January 25, 2019 and April 27, 2018 was $308 million and $289 million , respectively. At January 25, 2019 and April 27, 2018 , $209 million and $196 million was included in other accrued expenses , respectively, and $99 million and $93 million was included in other liabilities , respectively. During the nine months ended January 25, 2019 , the Company recognized $170 million of revenue that was included in deferred revenue as of April 27, 2018 . Remaining performance obligations include deferred revenue and amounts the Company expects to receive for goods and services that have not yet been delivered or provided under existing, noncancellable contracts with minimum purchase commitments, primarily related to consumables for previously sold equipment as well as remote monitoring services and equipment maintenance. For contracts that have an original duration of one year or less, the Company has elected the practical expedient applicable to such contracts and does not disclose the transaction price for remaining performance obligations at the end of each reporting period and when the Company expects to recognize this revenue. At January 25, 2019 , the estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied for executed contracts with an original duration of one year or more was approximately $700 million . The Company expects to recognize revenue on the majority of these remaining performance obligations over the next three years. |
Acquisitions
Acquisitions | 9 Months Ended |
Jan. 25, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The Company had acquisitions during the three and nine months ended January 25, 2019 that were accounted for as business combinations. The assets and liabilities of the businesses acquired were recorded and consolidated on the acquisition date at their respective fair values. Goodwill resulting from business combinations is largely attributable to future yet to be defined technologies, new customer relationships, existing workforce of the acquired businesses, and synergies expected to arise after the Company's acquisition of these businesses. The pro forma impact of these acquisitions was not significant, either individually or in the aggregate, to the results of the Company for the three or nine months ended January 25, 2019 and January 26, 2018 . The results of operations of acquired businesses have been included in the Company's consolidated statements of income since the date each business was acquired. The acquisition date fair values of the assets acquired and liabilities assumed were as follows: (in millions) Mazor Robotics All Other Total Cash and cash equivalents $ 109 $ 3 $ 112 Investments 52 — 52 Accounts receivable 10 2 12 Inventory 8 27 35 Other current assets 2 3 5 Property, plant, and equipment 3 29 32 Goodwill 1,214 146 1,360 Other intangible assets 400 211 611 Tax assets — 6 6 Total assets acquired 1,798 427 2,225 Current liabilities 56 45 101 Accrued income taxes 3 5 8 Deferred tax liabilities 65 — 65 Total liabilities assumed 124 50 174 Net assets acquired $ 1,674 $ 377 $ 2,051 Mazor Robotics On December 18, 2018, the Company's Restorative Therapies Group acquired Mazor Robotics (Mazor), a pioneer in the field of robotic guidance systems. The acquisition of Mazor strengthens the Company's position as a global leader in enabling technologies for spine surgery. The Company offers a fully-integrated procedural solution for surgical planning, execution and confirmation by combining the Company's spine implants, navigation, and intra-operative imaging technology with Mazor's robotic-assisted surgery systems. Total consideration for the transaction, net of cash acquired, was $1.6 billion , consisting of $1.3 billion of cash and $246 million of a previously-held equity investment in Mazor. Based upon a preliminary acquisition valuation, the Company acquired $384 million of technology-based intangible assets and $16 million of tradenames with estimated useful lives of 10 years and $1.2 billion of goodwill. The goodwill is primarily attributable to pull-through revenue, future yet to be defined technologies, and assembled workforce. The goodwill is not deductible for tax purposes. During the three and nine months ended January 25, 2019 , the Company recognized $51 million of costs incurred in connection with the acquisition of Mazor, including payouts for unvested stock options and investment banker and other transaction fees, which were recognized in selling, general, and administrative expense in the consolidated statements of income. Revenue and net income (loss) attributable to Mazor since the date of acquisition included in the consolidated statements of income were not material for the three or nine months ended January 25, 2019 . Refer to Note 2 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2018 for additional information on the Company's fiscal year 2018 acquisitions. Acquired In-Process Research & Development In-process research and development (IPR&D) acquired outside of a business combination is expensed immediately. During the nine months ended January 25, 2019 , the Company acquired $15 million of IPR&D in connection with an asset acquisition, which was recognized in other operating expense, net in the consolidated statements of income. The Company did no t acquire any IPR&D in connection with an asset acquisition during the three months ended January 25, 2019 or the three and nine months ended January 26, 2018 . Contingent Consideration Certain of the Company’s business combinations involve potential payment of future consideration that is contingent upon the achievement of certain product development milestones and/or contingent on the acquired business reaching certain performance milestones. A liability is recorded for the estimated fair value of the contingent consideration on the acquisition date. The fair value of the contingent consideration is remeasured at each reporting period, and the change in fair value is recognized within other operating expense, net 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. The fair value of contingent consideration at January 25, 2019 and April 27, 2018 was $148 million and $173 million , respectively. At January 25, 2019 , $99 million was recorded in other accrued expenses and $49 million was recorded in other liabilities in the consolidated balance sheets. At April 27, 2018 , $108 million was recorded in other accrued expenses and $65 million was recorded in other liabilities in the consolidated balance sheets. The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Beginning balance $ 203 $ 190 $ 173 $ 246 Purchase price contingent consideration 5 13 51 28 Payments (1 ) (20 ) (8 ) (66 ) Change in fair value (59 ) (12 ) (68 ) (37 ) Ending balance $ 148 $ 171 $ 148 $ 171 The fair value of contingent consideration is measured using projected payment dates, discount rates, probabilities of payment, and projected revenues (for revenue-based consideration). Projected revenues are based on the Company's most recent internal operational budgets and long-range strategic plans. Changes in projected payment dates, discount rates, probabilities of payment, and projected revenues may result in adjustments to the fair value measurement. The recurring Level 3 fair value measurements of contingent consideration for which a liability is recorded include the following significant unobservable inputs: Fair Value at (in millions) January 25, 2019 Valuation Technique Unobservable Input Range Discount rate 11.5% - 32.5% Revenue and other performance-based payments $97 Discounted cash flow Probability of payment 100% Projected fiscal year of payment 2019 - 2025 Discount rate 5.5% Product development and other milestone-based payments $51 Discounted cash flow Probability of payment 75% - 100% Projected fiscal year of payment 2019 - 2027 |
Divestitures
Divestitures | 9 Months Ended |
Jan. 25, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures On July 29, 2017, the Company completed 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). 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 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. During the nine months ended January 26, 2018 , the Company recognized expenses incurred in connection with the divestiture of $115 million , primarily comprised of professional services, including banker, legal, tax, and advisory fees, as well as $16 million of accelerated stock compensation expense related to the acceleration of the vesting period for employees that transferred with the divestiture. Expenses incurred in connection with the divestiture were recognized in selling, general, and administrative expense in the consolidated statements of income. There were no divestiture-related expenses during the three months ended January 26, 2018 or the three and nine months ended January 25, 2019 . The divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses did not meet the criteria to be classified as discontinued operations, as such, the results of operations of these businesses are included within net income through the date of the divestiture. |
Restructuring
Restructuring | 9 Months Ended |
Jan. 25, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring For the three and nine months ended January 25, 2019 , the Company recognized $66 million and $256 million in restructuring charges, net of $3 million and $8 million of accrual adjustments, respectively. For the three and nine months ended January 26, 2018 , the Company recognized $30 million and $62 million in restructuring charges, net of $2 million and $15 million of accrual adjustments, respectively. For the three and nine months ended January 26, 2018 , the Company recognized $32 million of charges related to the Enterprise Excellence restructuring program, and for the three and nine months ended January 26, 2018 , the Company recognized no charges and $45 million of charges, respectively, related to the Cost Synergies restructuring program. 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. 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. For the three and nine months ended January 25, 2019 , the Company recognized $69 million and $264 million in charges, respectively. Restructuring charges included $21 million and $58 million , respectively, recognized within cost of products sold and $19 million and $73 million , respectively, recognized within selling, general, and administrative expense in the consolidated statements of income. For the three and nine months ended January 26, 2018 , the Company recognized $32 million in charges. Restructuring charges included $13 million recognized within cost of products sold and $10 million recognized within selling, general, and administrative expense in the consolidated statements of income. The following table summarizes the activity related to the Enterprise Excellence restructuring program for the nine months ended January 25, 2019 : (in millions) Employee Termination Benefits Associated Costs (1) Asset Write-Downs (2) Other Costs Total April 27, 2018 $ 27 $ 2 $ — $ — $ 29 Charges 107 131 13 13 264 Cash payments (97 ) (128 ) — (5 ) (230 ) Settled non-cash — — (13 ) — (13 ) January 25, 2019 $ 37 $ 5 $ — $ 8 $ 50 (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. (2) 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 plc (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 Other Costs Total April 27, 2018 $ 116 $ 22 $ 138 Cash payments (34 ) (18 ) (52 ) Accrual adjustments (8 ) — (8 ) January 25, 2019 $ 74 $ 4 $ 78 For the three and nine months ended January 25, 2019 , the Company recognized accrual adjustments of $1 million and $8 million , respectively. For the three months ended January 26, 2018 , the Company recognized no charges, and for the nine months ended January 26, 2018 , the Company recognized $45 million in charges. During the three and nine months ended January 26, 2018 , the Company recognized accrual adjustments of $2 million and $15 million , respectively. For the nine months ended January 26, 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. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Jan. 25, 2019 | |
Investments [Abstract] | |
Financial Instruments | Financial Instruments Debt Securities The Company holds investments in marketable debt securities that are classified and accounted for as available-for-sale and are remeasured on a recurring basis. For information regarding the valuation techniques and inputs used in the fair value measurements, refer to Note 1 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2018 . The following tables summarize the Company's investments in available-for-sale debt securities by significant investment category and the related consolidated balance sheet classification at January 25, 2019 and April 27, 2018 : January 25, 2019 Valuation Balance Sheet Classification (in millions) Cost Unrealized Gains Unrealized Losses Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 523 $ — $ (15 ) $ 508 $ 508 $ — Level 2: Corporate debt securities 3,259 3 (60 ) 3,202 3,202 — U.S. government and agency securities 841 — (14 ) 827 827 — Mortgage-backed securities 464 1 (28 ) 437 437 — Non-U.S. government and agency securities 5 — — 5 5 — Other asset-backed securities 464 — (4 ) 460 460 — Total Level 2 5,033 4 (106 ) 4,931 4,931 — Level 3: Auction rate securities 47 — (3 ) 44 — 44 Total available-for-sale debt securities $ 5,603 $ 4 $ (124 ) $ 5,483 $ 5,439 $ 44 April 27, 2018 Valuation Balance Sheet Classification (in millions) Cost Unrealized Gains Unrealized Losses Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 732 $ — $ (26 ) $ 706 $ 706 $ — 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 — Total Level 2 6,184 22 (136 ) 6,070 6,070 — Level 3: Auction rate securities 47 — (3 ) 44 — 44 Total available-for-sale debt securities $ 6,963 $ 22 $ (165 ) $ 6,820 $ 6,776 $ 44 The following tables present the gross unrealized losses and fair values of the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category at January 25, 2019 and April 27, 2018 : January 25, 2019 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government and agency securities $ 42 $ — $ 812 $ (29 ) Corporate debt securities 1,543 (21 ) 1,168 (39 ) Mortgage-backed securities 87 (1 ) 287 (27 ) Other asset-backed securities 313 (3 ) 81 (1 ) Auction rate securities — — 44 (3 ) Total $ 1,985 $ (25 ) $ 2,392 $ (99 ) April 27, 2018 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government and agency securities $ 762 $ (33 ) $ 374 $ (17 ) Corporate debt securities 2,620 (58 ) 272 (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 ) Auction rate securities — — 44 (3 ) Total $ 4,094 $ (107 ) $ 891 $ (58 ) The following table presents the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 at January 25, 2019 : 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 the three and nine months ended January 25, 2019 and January 26, 2018 . 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. There were no purchases, sales, settlements, or gains or losses recognized in earnings or other comprehensive income for available-for-sale securities classified as Level 3 during the three and nine months ended January 25, 2019 and January 26, 2018 . Activity related to the Company’s debt securities portfolio is as follows: Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Proceeds from sales $ 1,301 $ 667 $ 3,217 $ 2,618 Gross realized gains 9 3 17 22 Gross realized losses (36 ) (2 ) (55 ) (16 ) 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 January 25, 2019 and April 27, 2018 , the credit loss portion of other-than-temporary impairments on debt securities was no t significant. The total reductions of available-for-sale debt securities sold during the three and nine months ended January 25, 2019 and January 26, 2018 were no t significant. The January 25, 2019 balance of available-for-sale debt securities 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) January 25, 2019 Due in one year or less $ 1,139 Due after one year through five years 1,867 Due after five years through ten years 2,358 Due after ten years 119 Total $ 5,483 Equity Securities, Equity Method Investments, and Other Investments The Company holds investments in equity securities with readily determinable fair values, equity investments without readily determinable fair values, investments accounted for under the equity method, and other investments. Effective April 28, 2018, the Company adopted accounting standards update (ASU) 2016-01, 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. As a result of the adoption, the Company reclassified $47 million from accumulated other comprehensive loss to the opening balance of retained earnings as of April 28, 2018. The Company uses quoted market prices to determine the fair value of equity securities with readily determinable fair values. For equity investments without readily determinable fair values that do not qualify for the practical expedient to estimate fair value using the net asset value per share or its equivalent, the Company has elected to measure these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. This election is made for each investment separately and is reassessed at each reporting period as to whether the investment continues to qualify for this election. Additionally, at each reporting period, the Company makes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. Equity securities with readily determinable fair values are included within Level 1 of the fair value hierarchy, as they are measured using quoted market prices. Equity method investments and investments without readily determinable fair values, as described above, 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. The following table summarizes the Company's equity and other investments at January 25, 2019 , which are classified as other assets in the consolidated balance sheets: (in millions) January 25, 2019 Investments with readily determinable fair values (marketable equity securities) $ 20 Investments without readily determinable fair values 240 Equity method and other investments 70 Total equity and other investments $ 330 Prior to the adoption of ASU 2016-01, marketable equity securities were classified as available-for-sale and measured at fair value with unrealized changes recognized in accumulated other comprehensive income (AOCI), net of deferred taxes. Gains and losses on available-for-sale marketable equity securities were recognized in net income when realized. The Company also accounted for certain investments without quoted market prices under the cost method of accounting. The following table summarizes the values of the Company's equity and other investments by significant investment category and the related 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: Marketable equity securities $ 63 $ 99 $ — $ 162 $ — $ 162 Level 2: Debt funds 739 — (154 ) 585 585 — Investments measured at net asset value (1) : Debt funds 199 — (2 ) 197 197 — Total available-for-sale equity securities 1,001 99 (156 ) 944 782 162 Cost method, equity method, and other investments: Level 3: Cost method, equity method, and other investments 353 — — N/A — 353 Total equity and other investments $ 1,354 $ 99 $ (156 ) $ 944 $ 782 $ 515 (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 table below includes activity related to the Company’s portfolio of equity and other investments. Gains and losses on equity and other investments are recognized in other non-operating (income) expense, net in the consolidated statements of income. Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 (1) January 25, 2019 January 26, 2018 (1) Proceeds from sales $ 33 $ 39 $ 941 $ 442 Gross gains 8 8 131 15 Gross losses (1 ) — (30 ) (1 ) Impairment losses recognized — (227 ) (12 ) (228 ) (1) Gains and losses for the three and nine months ended January 26, 2018 represent realized amounts. Net gains recognized during the three months ended January 25, 2019 were $7 million , comprised of $1 million net realized gains on equity and other investments sold during the period and $6 million of net unrealized gains on equity and other investments still held at January 25, 2019 . Net gains recognized during the nine months ended January 25, 2019 were $101 million , comprised of $71 million of net realized gains on equity and other investments sold during the period and $30 million of net unrealized gains on equity and other investments still held at January 25, 2019 . During the three months ended January 26, 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 the three and nine months ended January 26, 2018 , which were recognized in other non-operating (income) expense, net in the consolidated statements of income. The fair values of the investments were determined based on Level 3 inputs. The carrying values of the investments prior to recognizing the impairment charges was $317 million . There were no other significant impairments charges recognized during the three and nine months ended January 26, 2018 and January 25, 2019 . |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Jan. 25, 2019 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements Commercial Paper The Company maintains a commercial paper program that allows the Company to have a maximum of $3.5 billion in commercial paper outstanding. No commercial paper was outstanding at January 25, 2019 , as compared to $698 million at April 27, 2018 . There was no commercial paper activity during the three months ended January 25, 2019 . During the nine months ended January 25, 2019 , the weighted average original maturity of the commercial paper outstanding was approximately 28 days, and the weighted average interest rate was 2.10 percent . The issuance of commercial paper reduces the amount of credit available under the Company’s existing Credit Facility, as defined below. Line of Credit On December 12, 2018, Medtronic Global Holdings S.C.A. (Medtronic Luxco), as borrower, entered into an amended and restated credit agreement (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 December 2023. The Credit Facility replaces the previous credit agreement dated November 7, 2014 and effective as of January 26, 2015. The Credit Facility provides for a $3.5 billion five -year unsecured revolving credit facility, subject to two one -year extension options. The commitments are intended to be used for general corporate purposes, including to backstop the Company's $3.5 billion commercial paper program described above. The Company and Medtronic, Inc. have guaranteed the obligations of the borrowers under the Credit Facility, and Medtronic Luxco will also guarantee the obligations of any designated borrower. The Credit Facility includes a multi-currency borrowing feature for certain specified foreign currencies. No amounts were outstanding under the original and amended credit facilities at January 25, 2019 and April 27, 2018 . Interest rates on advances under the Credit Facility are based on the Company’s long-term debt ratings, assigned by Standard & Poor’s Ratings Services and Moody’s Investors Service. Facility fees are payable on the Credit Facility and are determined in the same manner as the interest rates. The agreement also contains customary covenants, all of which the Company was in compliance with at January 25, 2019 . Debt Obligations The Company's debt obligations consisted of the following: (in millions) Maturity by Fiscal Year January 25, 2019 April 27, 2018 Current debt obligations 2019 - 2020 $ 1,356 $ 2,058 Long-term debt Floating rate five-year 2015 senior notes 2020 500 500 2.500 percent five-year 2015 senior notes 2020 2,500 2,500 4.200 percent ten-year 2010 CIFSA senior notes 2021 600 600 4.125 percent ten-year 2011 senior notes 2021 500 500 3.150 percent seven-year 2015 senior notes 2022 2,500 2,500 3.125 percent ten-year 2012 senior notes 2022 675 675 3.200 percent ten-year 2012 CIFSA senior notes 2023 650 650 2.750 percent ten-year 2013 senior notes 2023 530 530 2.950 percent ten-year 2013 CIFSA senior notes 2024 310 310 3.625 percent ten-year 2014 senior notes 2024 850 850 3.500 percent ten-year 2015 senior notes 2025 4,000 4,000 3.350 percent ten-year 2017 senior notes 2027 850 850 4.375 percent twenty-year 2015 senior notes 2035 2,382 2,382 6.550 percent thirty-year 2008 CIFSA senior notes 2038 374 374 6.500 percent thirty-year 2009 senior notes 2039 300 300 5.550 percent thirty-year 2010 senior notes 2040 500 500 4.500 percent thirty-year 2012 senior notes 2042 400 400 4.000 percent thirty-year 2013 senior notes 2043 325 325 4.625 percent thirty-year 2014 senior notes 2044 650 650 4.625 percent thirty-year 2015 senior notes 2045 4,150 4,150 Bank borrowings 2020 - 2022 94 125 Debt premium, net 2020 - 2045 108 120 Capital lease obligations 2020 - 2025 21 21 Interest rate swaps 2021 - 2022 — (6 ) Deferred financing costs 2020 - 2045 (95 ) (107 ) Long-term debt $ 23,674 $ 23,699 Senior Notes The Company has outstanding unsecured senior debt obligations, described both as senior notes and current debt obligations in the table above (collectively, the Senior Notes). The Senior Notes rank equally with all other unsecured and unsubordinated indebtedness of the Company. The indentures under which the Senior Notes were issued contain customary covenants, all of which the Company remained in compliance with at January 25, 2019 . For additional information regarding the terms of these agreements, refer to Note 8 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2018 . On February 20, 2019 , the Company announced the commencement of a cash tender offer for up to $5.0 billion of certain of our outstanding Senior Notes. The tender offer will expire on March 19, 2019 unless extended or terminated. The tender offer is subject to a number of conditions, including the condition that the Company receives net proceeds from one or more debt financings sufficient to fund the purchase of tendered notes. Financial Instruments Not Measured at Fair Value At January 25, 2019 , the estimated fair value of the Company’s Senior Notes was $25.2 billion compared to a principal value of $24.5 billion . At April 27, 2018 , the estimated fair value was $25.1 billion compared to a principal value of $24.5 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 | 9 Months Ended |
Jan. 25, 2019 | |
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 rates 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 statement 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 $12.2 billion and $11.5 billion at January 25, 2019 and April 27, 2018 , respectively. The information that follows explains the various types of derivatives and financial instruments used by the Company, reasons the Company uses such instruments, and the impact such instruments have on the Company’s consolidated balance sheets and statements of income. Freestanding Derivative Contracts Freestanding derivative contracts are used to offset the Company’s exposure to the change in value of specific foreign-currency-denominated assets and liabilities and to offset variability of cash flows associated with forecasted transactions denominated in foreign currencies. The gross notional amount of these contracts outstanding was $5.1 billion and $5.2 billion at January 25, 2019 and April 27, 2018 , 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 was $174 million and $210 million at January 25, 2019 and April 27, 2018 , respectively. 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 the three and nine months ended January 25, 2019 and January 26, 2018 were as follows: Three months ended Nine months ended (in millions) Classification January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Currency exchange rate contracts Other operating expense, net $ (30 ) $ (181 ) $ 171 $ (318 ) Total return swaps Other operating expense, net — 23 — 38 Total $ (30 ) $ (158 ) $ 171 $ (280 ) 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 operating expense, net 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 the three and nine months ended January 25, 2019 and January 26, 2018 . No components of the hedge contracts were excluded in the measurement of hedge ineffectiveness, and no hedges were derecognized or discontinued during the three and nine months ended January 25, 2019 and January 26, 2018 . The gross notional amount of these contracts, designated as cash flow hedges, outstanding was $7.0 billion and $6.3 billion at January 25, 2019 and April 27, 2018 , respectively, and will mature within the subsequent three -year period. The amounts of the gains (losses) recognized in the consolidated statements of income related to derivative instruments designated as cash flow hedges for the three and nine months ended January 25, 2019 and January 26, 2018 were as follows: Three months ended Nine months ended (in millions) Classification January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Currency exchange rate contracts Other operating expense, net $ 48 $ (11 ) $ 56 $ 1 The amount of the gains (losses) recognized in AOCI related to the effective portion of currency exchange rate contract derivative instruments designated as cash flow hedges for the three and nine months ended January 25, 2019 and January 26, 2018 were as follows: Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Currency exchange rate contracts $ 25 $ (287 ) $ 469 $ (507 ) 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 is reported as a component of accumulated other comprehensive loss. Beginning in the period in which the planned debt issuance occurs and the related derivative instruments are terminated, the effective portion of the gains or losses are then reclassified into interest expense over the term of the related debt. Any portion of the gains or losses that is determined to be ineffective is immediately recognized in interest expense. For the three and nine months ended January 25, 2019 , the reclassifications of the effective portion of net gains (losses) on forward starting interest rate derivative instruments from accumulated other comprehensive loss to interest expense were no t significant. The Company had $110 million and $(207) million at January 25, 2019 and April 27, 2018 , respectively, in after-tax net unrealized gains (losses) associated with cash flow hedging instruments recorded in accumulated other comprehensive loss . The Company expects that $114 million of after-tax net unrealized gains at January 25, 2019 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 instruments are recognized in interest expense , and are offset by changes in the fair value of the underlying debt instrument. The gains (losses) from terminated interest rate swap agreements are recognized in long-term debt , increasing (decreasing) the outstanding balances of the debt, and amortized as a reduction of (addition to) interest expense over the remaining life of the related debt. At both January 25, 2019 and April 27, 2018 , the Company had interest rate swaps in gross notional amounts of $1.2 billion , designated as fair value hedges of underlying fixed-rate senior note obligations, including the Company's $500 million 4.125 percent 2011 Senior Notes due fiscal year 2021 and the $675 million 3.125 percent 2012 Senior Notes due fiscal year 2022 . At January 25, 2019 , the market value of outstanding interest rate swap agreements was in a net zero position, as compared to a net unrealized loss of $6 million at April 27, 2018 . The amounts were recorded in other liabilities , 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 the three and nine months ended January 25, 2019 and January 26, 2018 . In addition, the Company did no t recognize any gains or losses during the three and nine months ended January 25, 2019 and January 26, 2018 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 January 25, 2019 and April 27, 2018 . 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. January 25, 2019 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 $ 169 Other accrued expenses $ 7 Interest rate contracts Other assets 7 Other liabilities 7 Currency exchange rate contracts Other assets 68 Other liabilities 7 Total derivatives designated as hedging instruments 244 21 Derivatives not designated as hedging instruments Currency exchange rate contracts Other current assets 16 Other accrued expenses 25 Total return swap Other current assets — Other accrued expenses 4 Cross currency interest rate contracts Other current assets 8 Other accrued expenses 3 Cross currency interest rate contracts Other assets 1 Other liabilities 1 Total derivatives not designated as hedging instruments 25 33 Total derivatives $ 269 $ 54 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 The following table provides information by level for the derivative assets and liabilities that are measured at fair value on a recurring basis. January 25, 2019 April 27, 2018 (in millions) Level 1 Level 2 Level 1 Level 2 Derivative assets $ 253 $ 16 $ 79 $ 39 Derivative liabilities 39 15 238 20 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 cash flows related to collateral posted and received are reported gross as investing and financing activities, respectively, in the consolidated statements of cash flows. The following tables 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. January 25, 2019 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Securities Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 253 $ (33 ) $ (17 ) $ — $ 203 Interest rate contracts 7 (4 ) — — 3 Cross currency interest rate contracts 9 (1 ) — — 8 269 (38 ) (17 ) — 214 Derivative liabilities: Currency exchange rate contracts (39 ) 31 — — (8 ) Interest rate contracts (7 ) 6 — — (1 ) Total return swaps (4 ) — — — (4 ) Cross currency interest rate contracts (4 ) 1 — — (3 ) (54 ) 38 — — (16 ) Total $ 215 $ — $ (17 ) $ — $ 198 April 27, 2018 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Securities Collateral Posted (Received) 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 ) |
Inventories
Inventories | 9 Months Ended |
Jan. 25, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory balances, net of reserves, were as follows: (in millions) January 25, 2019 April 27, 2018 Finished goods $ 2,545 $ 2,407 Work in-process 560 496 Raw materials 761 676 Total $ 3,866 $ 3,579 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Jan. 25, 2019 | |
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 27, 2018 $ 6,791 $ 21,155 $ 9,717 $ 1,880 $ 39,543 Goodwill as a result of acquisitions — 82 1,254 24 1,360 Currency translation and other (82 ) (691 ) (126 ) (1 ) (900 ) January 25, 2019 $ 6,709 $ 20,546 $ 10,845 $ 1,903 $ 40,003 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 that the carrying amount may be impaired. Impairment testing for goodwill is performed at the reporting unit level. The test for impairment of goodwill requires the Company to make several estimates about fair value, most of which are based on projected future cash flows. The Company calculates the excess of each reporting unit's fair value over its carrying amount, including goodwill, utilizing a discounted cash flow analysis. The Company did no t recognize any goodwill impairment during the three or nine months ended January 25, 2019 or January 26, 2018 . Intangible Assets The following table presents the gross carrying amount and accumulated amortization of intangible assets: January 25, 2019 April 27, 2018 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 16,950 $ (3,854 ) $ 16,949 $ (3,139 ) Purchased technology and patents 11,469 (4,464 ) 11,569 (4,441 ) Trademarks and tradenames 570 (320 ) 822 (569 ) Other 88 (55 ) 94 (52 ) Total $ 29,077 $ (8,693 ) $ 29,434 $ (8,201 ) Indefinite-lived: IPR&D $ 451 $ 490 The Company assesses definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset (asset group) may not be recoverable. When events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable, the Company calculates the excess of an intangible asset's carrying value over its undiscounted future cash flows. If the carrying value is not recoverable, an impairment loss is recognized based on the amount by which the carrying value exceeds the fair value. The inputs used in the fair value analysis fall within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value. During the three months ended January 25, 2019 , the Company recognized $26 million of definite-lived intangible asset charges in connection with business exits within the Restorative Therapies Group segment. During the nine months ended January 25, 2019 , the Company recognized $87 million of definite-lived intangible asset charges, including $26 million and $61 million of charges in connection with business exits within the Restorative Therapies Group and Cardiac and Vascular Group segments, respectively. Definite-lived intangible asset charges are recognized in other operating expense, net in the consolidated statements of income. The Company did no t recognize any definite-lived intangible asset charges during the three or nine months ended January 26, 2018 . The Company assesses indefinite-lived intangibles for impairment annually in the third quarter of the fiscal year and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. During the three and nine months ended January 25, 2019 , the Company recognized $21 million of indefinite-lived intangible asset charges, including $11 million in connection with a business exit within the Restorative Therapies Group segment. During the three and nine months ended January 26, 2018 , the Company recognized indefinite-lived intangible asset charges of $63 million and $68 million , respectively, including $63 million as the result of the discontinuation of certain IPR&D projects within the Restorative Therapies Group segment. Indefinite-lived intangible asset charges are recognized in other operating expense, net in the consolidated statements of income. Due to the nature of IPR&D projects, the Company may experience future delays or failures to obtain regulatory approvals to conduct clinical trials, failures of such clinical trials, delays or failures to obtain required market clearances, other failures to achieve a commercially viable product, or the discontinuation a certain projects, and as a result, may recognize impairment losses in the future. Amortization Expense Intangible asset amortization expense for the three and nine months ended January 25, 2019 was $436 million and $1.3 billion , respectively, as compared to $ 461 million and $1.4 billion for the three and nine months ended January 26, 2018 , respectively. Estimated aggregate amortization expense by fiscal year based on the carrying value of definite-lived intangible assets at January 25, 2019 , excluding any possible future amortization associated with acquired IPR&D which has not yet met technological feasibility, is as follows: (in millions) Amortization Expense Remaining 2019 $ 437 2020 1,740 2021 1,723 2022 1,683 2023 1,614 2024 1,573 |
Income Taxes
Income Taxes | 9 Months Ended |
Jan. 25, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation, commonly referred to as the Tax Cuts and Jobs Act (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 , 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 Company adopted guidance allowing for a measurement period, not to exceed one year, to finalize the accounting for the income tax impacts of the Tax Act. The measurement period closed during the three months ended January 25, 2019 . During the three months ended January 25, 2019 , the Company recorded a net benefit of $12 million associated with the transition tax liability and the Tax Act impact to deferred tax assets, liabilities, and valuation allowances. The Company has recorded a cumulative income tax charge associated with the Tax Act totaling $2.5 billion , which is comprised of the following components: • A $2.4 billion charge associated with the one-time repatriation tax based on post-1986 undistributed earnings and profits not previously subject to U.S. income tax and whether such earnings were held in cash or other specified assets. • A $118 million charge resulting from the removal of the permanent reinvestment assertion on earnings through April 27, 2018 for entities subject to the one-time repatriation tax. • A $77 million net benefit associated with the remeasurement of U.S. Federal deferred tax assets, liabilities, and valuation allowances, and impacts from the decrease in the U.S. statutory tax rate. The Company made the accounting policy election to treat taxes due on U.S. inclusions in taxable income related to Global Intangible Low-Taxed Income (GILTI) as a current period expense when incurred (the "period cost method"). The Company’s effective tax rate for the three and nine months ended January 25, 2019 was 7.2 percent and 11.2 percent , respectively, as compared to 235.5 percent and 58.7 percent for the three and nine months ended January 26, 2018 , respectively. The decrease in the effective tax rate for the three and nine months ended January 25, 2019 , as compared to the corresponding periods in the prior fiscal year, was primarily due to the impacts from U.S. tax reform. Further driving the decrease were the impacts from certain tax adjustments, the gain on the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses during the second quarter of fiscal year 2018 , the impact from investment losses, the finalization of certain tax returns and audits, the impact from the lapse of federal statutes of limitations, excess tax benefits related to stock-based compensation, and year-over-year changes in operational results by jurisdiction. Certain Tax Adjustments During the three months ended January 25, 2019 , the net benefit from certain tax adjustments of $64 million , recognized in income tax provision in the consolidated statements of income, included the following: • A net benefit of $12 million associated with the transition tax liability and the Tax Act impact to deferred tax assets, liabilities, and valuation allowances, as noted above. • A benefit of $32 million related to intercompany legal entity restructuring. • A net benefit of $20 million associated with the finalization of certain income tax aspects of the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses. During the nine months ended January 25, 2019 , the net benefit from certain tax adjustments of $35 million , recognized in income tax provision in the consolidated statements of income, included the following: • A net benefit of $25 million associated with the transition tax liability and the Tax Act impact to deferred tax assets, liabilities, and valuation allowances, as noted above. • A $32 million benefit of related to intercompany legal entity restructuring. • A $20 million net benefit associated with the finalization of certain income tax aspects of the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses. • A charge of $42 million related to the recognition of a prepaid tax expense resulting from the reduction in the U.S. statutory tax rate under the Tax Act and the current quarter sale of U.S. manufactured inventory held as of April 27, 2018 . During the three months ended January 26, 2018 , the net charge from certain tax adjustments of $2.2 billion , recognized in income tax provision in the consolidated statements of income, included the following: • A net charge of $2.2 billion associated with U.S. tax reform. During the nine months ended January 26, 2018 , the net charge from 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 $2.2 billion associated with U.S. tax reform. • A net benefit of $398 million associated with the intercompany sales of intellectual property. • A net charge of $37 million primarily related to the sale of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses. At January 25, 2019 and April 27, 2018 , the Company's gross unrecognized tax benefits were $1.8 billion and $1.7 billion , respectively. In addition, the Company had accrued gross interest and penalties of $192 million at January 25, 2019 . If all of the Company’s unrecognized tax benefits were recognized, approximately $1.7 billion would impact the Company’s effective tax rate. At both January 25, 2019 and April 27, 2018 , the total balance of the Company's gross unrecognized tax benefits was recorded as a noncurrent liability within accrued income taxes on the consolidated balance sheets. The Company recognizes interest and penalties related to income tax matters within income tax provision in the consolidated statements of income and records the liability within either current or noncurrent accrued income taxes on the consolidated balance sheets. Refer to Note 17 to the consolidated financial statements for additional information regarding the status of current tax audits and proceedings. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jan. 25, 2019 | |
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 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 average 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 with the proceeds from issuance of the potentially dilutive shares. Potentially dilutive ordinary shares include stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. The table below sets forth the computation of basic and diluted earnings (loss) per share: Three months ended Nine months ended (in millions, except per share data) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Numerator: Net income (loss) attributable to ordinary shareholders $ 1,269 $ (1,389 ) $ 3,459 $ 1,644 Denominator: Basic – weighted average shares outstanding 1,342.8 1,354.0 1,348.1 1,357.2 Effect of dilutive securities: Employee stock options 6.9 — 7.9 8.1 Employee restricted stock units 3.0 — 3.2 3.4 Other — — 0.3 0.2 Diluted – weighted average shares outstanding 1,352.7 1,354.0 1,359.5 1,368.9 Basic earnings (loss) per share $ 0.95 $ (1.03 ) $ 2.57 $ 1.21 Diluted earnings (loss) per share $ 0.94 $ (1.03 ) $ 2.54 $ 1.20 As a result of the net loss for the three months ended January 26, 2018 , the Company excluded 10.5 million potentially dilutive common shares from the diluted loss per share calculation. The calculation of weighted average diluted shares outstanding excludes options to purchase approximately 7 million ordinary shares for both the three and nine months ended January 25, 2019 , and 10 million and 9 million ordinary shares for the three and nine months ended January 26, 2018 , respectively, because their effect would have been anti-dilutive on the Company’s earnings per share. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jan. 25, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following table presents the components and classification of stock-based compensation expense for stock options, restricted stock, and employee stock purchase plan shares recognized for the three and nine months ended January 25, 2019 and January 26, 2018 : Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Stock options $ 11 $ 28 $ 62 $ 105 Restricted stock 43 38 144 145 Employee stock purchase plan 6 6 22 20 Total stock-based compensation expense $ 60 $ 72 $ 228 $ 270 Cost of products sold $ 5 $ 10 $ 23 $ 34 Research and development expense 8 8 29 29 Selling, general, and administrative expense 47 54 176 207 Total stock-based compensation expense 60 72 228 270 Income tax benefits (8 ) (12 ) (40 ) (69 ) Total stock-based compensation expense, net of tax $ 52 $ 60 $ 188 $ 201 |
Retirement Benefit Plans
Retirement Benefit Plans | 9 Months Ended |
Jan. 25, 2019 | |
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 net periodic benefit cost of the defined benefit pension plans included the following components for the three and nine months ended January 25, 2019 and January 26, 2018 : U.S. Non-U.S. Three months ended Three months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Service cost $ 27 $ 29 $ 15 $ 17 Interest cost 33 29 7 7 Expected return on plan assets (54 ) (51 ) (14 ) (13 ) Amortization of net actuarial loss 19 20 3 4 Plan settlement — 15 — — Net periodic benefit cost $ 25 $ 42 $ 11 $ 15 U.S. Non-U.S. Nine months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Service cost $ 81 $ 87 $ 45 $ 51 Interest cost 99 89 21 21 Expected return on plan assets (162 ) (155 ) (42 ) (39 ) Amortization of net actuarial loss 57 60 9 12 Plan settlement — 15 — — Net periodic benefit cost $ 75 $ 96 $ 33 $ 45 Components of net periodic benefit cost other than the service component are recognized in other non-operating (income) expense, net in the consolidated statements of income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income and Supplemental Equity Disclosure | 9 Months Ended |
Jan. 25, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income and Supplemental Equity Disclosure | Accumulated Other Comprehensive Income and Supplemental Equity Disclosure The following table provides changes in AOCI, net of tax, and by component: (in millions) Unrealized (Loss) Gain on Investment Securities Cumulative Translation Adjustment Net Change in Retirement Obligations Unrealized (Loss) Gain on Derivative Financial Instruments Total Accumulated Other Comprehensive (Loss) Income April 27, 2018 $ (194 ) $ (268 ) $ (1,117 ) $ (207 ) $ (1,786 ) Other comprehensive (loss) income before reclassifications (7 ) (1,124 ) — 353 (778 ) Reclassifications 30 — 65 (36 ) 59 Other comprehensive income (loss) 23 (1,124 ) 65 317 (719 ) Cumulative effect of change in accounting principle (1) 47 — — — 47 January 25, 2019 $ (124 ) $ (1,392 ) $ (1,052 ) $ 110 $ (2,458 ) (in millions) Unrealized (Loss) Gain on Investment Securities Cumulative Translation Adjustment Net Change in Retirement Obligations Unrealized Gain (Loss) on Derivative Financial Instruments Total Accumulated Other Comprehensive (Loss) Income April 28, 2017 $ (69 ) $ (1,452 ) $ (1,129 ) $ 37 $ (2,613 ) Other comprehensive income (loss) before reclassifications 50 1,559 (38 ) (351 ) 1,220 Reclassifications (9 ) (34 ) 49 5 11 Other comprehensive income (loss) 41 1,525 11 (346 ) 1,231 January 26, 2018 $ (28 ) $ 73 $ (1,118 ) $ (309 ) $ (1,382 ) (1) Refer to Note 2 to the consolidated financial statements for discussion regarding the adoption of accounting standards during the nine months ended January 25, 2019 . The income tax on gains and losses on investment securities in other comprehensive income before reclassifications during the nine months ended January 25, 2019 and January 26, 2018 was a benefit of $2 million and an expense of $33 million , respectively. During the nine months ended January 25, 2019 and January 26, 2018 , realized gains and losses on investment securities reclassified from AOCI were reduced by income taxes of $2 million and $4 million , respectively. When realized, gains and losses on investment securities reclassified from AOCI are recognized within other non-operating (income) expense, net . Refer to Note 7 to the consolidated financial statements for additional information. For the nine months ended January 25, 2019 , the income tax benefit on cumulative translation adjustments was $8 million . For the nine months ended January 26, 2018 , taxes were no t provided on cumulative translation adjustments as substantially all translation adjustments relate to earnings that were intended to be indefinitely reinvested outside the U.S. The net change in retirement obligations in other comprehensive income includes net amortization of actuarial losses included in net periodic benefit cost. During the nine months ended January 25, 2019 , there was no income tax impact on the net change in retirement obligations in other comprehensive income before reclassifications. The income tax on the net change in retirement obligations in other comprehensive income before reclassifications during the nine months ended January 26, 2018 was a benefit of $6 million . During the nine months ended January 25, 2019 and January 26, 2018 , the gains and losses on defined benefit and pension items reclassified from AOCI were reduced by income taxes of $15 million and $21 million , respectively. When realized, net gains and losses on defined benefit and pension items reclassified from AOCI are recognized within other non-operating (income) expense, net . Refer to Note 15 to the consolidated financial statements for additional information. The income tax on unrealized gains and losses on derivative financial instruments in other comprehensive income before reclassifications during the nine months ended January 25, 2019 and January 26, 2018 was an expense of $116 million and a benefit of $156 million , respectively. During the nine months ended January 25, 2019 , gains and losses on derivative financial instruments reclassified from AOCI were reduced by income taxes of $16 million . During the nine months ended January 26, 2018 , there was no income tax impact on the gains and losses on derivative financial instruments reclassified from AOCI. When realized, cash flow hedge gains and losses reclassified from AOCI are recognized within other operating expense, net, and forward starting interest rate derivative financial instrument gains and losses reclassified from AOCI are recognized within interest expense. Refer to Note 9 to the consolidated financial statements for additional information. The supplemental equity schedule below presents changes in the Company's total shareholders' equity and noncontrolling interests for the nine months ended January 25, 2019 and January 26, 2018 . (in millions) Total Shareholders' Equity Noncontrolling Interests Total Equity April 27, 2018 $ 50,720 $ 102 $ 50,822 Net income 3,459 9 3,468 Other comprehensive loss (719 ) (3 ) (722 ) Dividends to shareholders (2,022 ) — (2,022 ) Issuance of shares under stock purchase and award plans 826 — 826 Repurchase of ordinary shares (2,663 ) — (2,663 ) Stock-based compensation 228 — 228 Changes to noncontrolling ownership interests — 4 4 January 25, 2019 $ 49,829 $ 112 $ 49,941 (in millions) Total Shareholders' Equity Noncontrolling Interests Total Equity April 28, 2017 $ 50,294 $ 122 $ 50,416 Net income (loss) 1,644 (14 ) 1,630 Other comprehensive income 1,231 — 1,231 Dividends to shareholders (1,870 ) — (1,870 ) Issuance of shares under stock purchase and award plans 266 — 266 Repurchase of ordinary shares (1,897 ) — (1,897 ) Stock-based compensation 270 — 270 Cumulative effect of change in accounting principle 296 — 296 Changes to noncontrolling ownership interests — (2 ) (2 ) January 26, 2018 $ 50,234 $ 106 $ 50,340 Cash dividends declared and paid per ordinary share were $0.50 for each quarter in fiscal year 2019 and $0.46 for each quarter in fiscal year 2018. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jan. 25, 2019 | |
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 January 25, 2019 and April 27, 2018 , accrued litigation was approximately $0.8 billion and $0.9 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 February 1, 2019, the Company had reached agreements to settle approximately 15,100 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. Sasso The Company is involved in litigation in Indiana relating to certain patent and royalty disputes with Dr. Sasso under agreements originally entered into in 1999 and 2001. On November 28, 2018, a jury in Indiana state court returned a verdict against the Company for approximately $112 million . The Company has strong arguments to appeal the verdict and has filed post-trial motions and appeals with the appropriate appellate courts. The Company has not recognized an expense in connection with this matter because it does not currently believe a loss is probable under U.S. GAAP. Shareholder Related Matters 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 March 20, 2015, the District Court issued an 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, and reversed in part. On April 19, 2016 the Minnesota Supreme Court granted the Company’s petition to review 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, which are ongoing. 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. In October of 2018, the parties reached an agreement to settle this matter, and in January 2019, the settlement amount was deposited into a qualified settlement fund to be distributed following final court approval. 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. Since the early 2000s, the Company or its predecessors have 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 the Company's predecessor 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. Following a trial in March 2002, the Court held that conditions in the Penobscot River and Bay may pose an imminent and substantial endangerment and that the Company’s predecessor was liable for the cost of performing a study of the River and Bay. Following a second trial in June 2014, the Court ordered that further engineering study and engineering design work was needed to determine the nature and extent of remediation in the Penobscot River and Bay. The Court also appointed an engineering firm to conduct such studies and issue a report on potential remediation alternatives. In connection with these proceedings, reports have been produced including a variety of cost estimates for a variety of potential remedial options. A third trial to determine the course of remediation to be pursued is scheduled to occur in October of 2019. The Company's accrued expenses for environmental proceedings are included within accrued litigation as discussed above. Government Matters Since 2017, the Company has been responding to requests from the Department of Justice and U.S. Department of Health and Human Services for information about business practices relating to a neurovascular product developed and first marketed by ev3 and Covidien. The Company has provided information in response to these requests and is cooperating with the inquiry. The Company has not recognized an expense in connection with any ongoing investigation, because any such 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 the ongoing information requests. 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 for the 8th Circuit regarding the Tax Court Opinion. Oral argument for the Appeal occurred on March 14, 2018. The 8th Circuit Court of Appeals issued their opinion on August 16, 2018, and remanded the case back to the U.S. Tax Court for additional factual findings. 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. The remaining unresolved issue for fiscal years 2007 and 2008 relates to 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. The remaining unresolved issue for fiscal years 2009, 2010, and 2011 relates to 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 and 2014 U.S. federal income tax returns lapsed during the first quarter of fiscal years 2018 and 2019, respectively. 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. Refer to Note 12 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. Refer to Note 1 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2018 for additional information. As part of the Company’s 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. |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Jan. 25, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Segment disclosures are on a performance basis consistent with internal management reporting. Net sales of the Company's reportable 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 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, interest income, amortization of intangible assets, centralized distribution costs, certain corporate charges, and other items not allocated to the segments. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in Note 1 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2018 . 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 Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Cardiac and Vascular Group $ 2,786 $ 2,800 $ 8,455 $ 8,219 Minimally Invasive Therapies Group 2,124 2,041 6,223 6,479 Restorative Therapies Group 2,026 1,944 5,968 5,616 Diabetes Group 610 584 1,765 1,495 Total $ 7,546 $ 7,369 $ 22,411 $ 21,809 Segment EBITA Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Cardiac and Vascular Group $ 1,077 $ 1,082 $ 3,268 $ 3,197 Minimally Invasive Therapies Group 828 797 2,397 2,433 Restorative Therapies Group 825 756 2,396 2,186 Diabetes Group 189 187 538 389 Segment EBITA 2,919 2,822 8,599 8,205 Interest expense (243 ) (270 ) (726 ) (829 ) Interest income 55 98 202 290 Amortization of intangible assets (436 ) (461 ) (1,327 ) (1,375 ) Corporate (323 ) (524 ) (969 ) (1,140 ) Centralized distribution costs (383 ) (471 ) (1,312 ) (1,399 ) Restructuring and associated costs (66 ) (30 ) (256 ) (62 ) Acquisition-related items (17 ) (30 ) (57 ) (101 ) Certain litigation charges (63 ) (61 ) (166 ) (61 ) Gain/(loss) on minority investments 7 — 92 — IPR&D charges (11 ) (46 ) (26 ) (46 ) Exit of businesses (69 ) — (149 ) — Divestiture-related items — — — (115 ) Gain on sale of businesses — — — 697 Contribution to Medtronic Foundation — — — (80 ) Hurricane Maria — — — (34 ) Income before income taxes $ 1,370 $ 1,027 $ 3,905 $ 3,950 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. The following table presents net sales for the three and nine months ended January 25, 2019 and January 26, 2018 for the Company's country of domicile, countries with significant concentrations, and all other countries: Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Ireland $ 24 $ 20 $ 68 $ 62 United States 4,001 3,912 11,910 11,688 Rest of world 3,521 3,437 10,433 10,059 Total other countries, excluding Ireland 7,522 7,349 22,343 21,747 Total $ 7,546 $ 7,369 $ 22,411 $ 21,809 |
Guarantor Financial Information
Guarantor Financial Information | 9 Months Ended |
Jan. 25, 2019 | |
Condensed Financial Information 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. Additionally, 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 for the three and nine months ended January 25, 2019 and January 26, 2018 , condensed consolidating balance sheets at January 25, 2019 and April 27, 2018 , and condensed consolidating statements of cash flows for the nine months ended January 25, 2019 and January 26, 2018 . 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. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. During the nine months ended January 25, 2019 , the Company undertook certain steps to reorganize ownership of various subsidiaries. The transactions were entirely among subsidiaries under the common control of Medtronic. This reorganization has been reflected as of the beginning of the earliest period presented. Consolidating Statement of Comprehensive Income Three Months Ended January 25, 2019 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Total Net sales $ — $ 281 $ — $ 7,546 $ (281 ) $ 7,546 Costs and expenses: Cost of products sold — 223 — 2,206 (164 ) 2,265 Research and development expense — 152 — 409 — 561 Selling, general, and administrative expense 2 362 — 2,232 — 2,596 Amortization of intangible assets — 2 — 434 — 436 Restructuring charges, net — 3 — 23 — 26 Certain litigation charges — 12 — 51 — 63 Other operating expense (income), net 15 (827 ) — 987 (118 ) 57 Operating profit (loss) (17 ) 354 — 1,204 1 1,542 Other non-operating (income) expense, net — (151 ) (200 ) (480 ) 760 (71 ) Interest expense 125 501 133 244 (760 ) 243 Equity in net (income) loss of subsidiaries (1,410 ) (678 ) (1,343 ) — 3,431 — Income (loss) before income taxes 1,268 682 1,410 1,440 (3,430 ) 1,370 Income tax (benefit) provision (1 ) 40 — 60 — 99 Net income (loss) 1,269 642 1,410 1,380 (3,430 ) 1,271 Net (income) loss attributable to noncontrolling interests — — — (2 ) — (2 ) Net income (loss) attributable to Medtronic 1,269 642 1,410 1,378 (3,430 ) 1,269 Other comprehensive income (loss), net of tax 154 54 154 132 (340 ) 154 Comprehensive income attributable to noncontrolling interests — — — (2 ) — (2 ) Total comprehensive income (loss) $ 1,423 $ 696 $ 1,564 $ 1,510 $ (3,770 ) $ 1,423 Consolidating Statement of Comprehensive Income Nine Months Ended January 25, 2019 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Total Net sales $ — $ 1,007 $ — $ 22,411 $ (1,007 ) $ 22,411 Costs and expenses: Cost of products sold — 776 — 6,538 (642 ) 6,672 Research and development expense — 496 — 1,240 — 1,736 Selling, general, and administrative expense 8 1,142 — 6,648 — 7,798 Amortization of intangible assets — 6 — 1,321 — 1,327 Restructuring charges, net — 14 — 98 — 112 Certain litigation charges — 90 — 76 — 166 Other operating expense (income), net 40 (1,759 ) — 2,336 (339 ) 278 Operating profit (loss) (48 ) 242 — 4,154 (26 ) 4,322 Other non-operating (income) expense, net — (445 ) (539 ) (1,411 ) 2,086 (309 ) Interest expense 333 1,444 349 686 (2,086 ) 726 Equity in net (income) loss of subsidiaries (3,835 ) (2,178 ) (3,644 ) — 9,657 — Income (loss) before income taxes 3,454 1,421 3,834 4,879 (9,683 ) 3,905 Income tax (benefit) provision (5 ) (79 ) — 521 — 437 Net income (loss) 3,459 1,500 3,834 4,358 (9,683 ) 3,468 Net (income) loss attributable to noncontrolling interests — — — (9 ) — (9 ) Net income (loss) attributable to Medtronic 3,459 1,500 3,834 4,349 (9,683 ) 3,459 Other comprehensive income (loss), net of tax (719 ) (747 ) (719 ) (779 ) 2,242 (722 ) Comprehensive income attributable to noncontrolling interests — — — (6 ) — (6 ) Total comprehensive income (loss) $ 2,740 $ 753 $ 3,115 $ 3,573 $ (7,441 ) $ 2,740 Consolidating Statement of Comprehensive Income Three Months Ended January 26, 2018 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Total Net sales $ — $ 275 $ — $ 7,369 $ (275 ) $ 7,369 Costs and expenses: Cost of products sold — 246 — 2,126 (178 ) 2,194 Research and development expense — 166 — 393 — 559 Selling, general, and administrative expense 4 364 — 2,155 — 2,523 Amortization of intangible assets — 2 — 459 — 461 Restructuring charges, net — — — 7 — 7 Certain litigation charges — 24 — 37 — 61 Other operating expense (income), net 10 (773 ) — 999 (108 ) 128 Operating profit (loss) (14 ) 246 — 1,193 11 1,436 Other non-operating (income) expense, net — 92 (133 ) (355 ) 535 139 Interest expense 63 464 73 205 (535 ) 270 Equity in net (income) loss of subsidiaries 1,314 1,350 1,374 — (4,038 ) — Income (loss) before income taxes (1,391 ) (1,660 ) (1,314 ) 1,343 4,049 1,027 Income tax (benefit) provision (2 ) 316 — 2,105 — 2,419 Net income (loss) (1,389 ) (1,976 ) (1,314 ) (762 ) 4,049 (1,392 ) Net loss attributable to noncontrolling interests — — — 3 — 3 Net income (loss) attributable to Medtronic (1,389 ) (1,976 ) (1,314 ) (759 ) 4,049 (1,389 ) Other comprehensive (loss) income, net of tax 678 599 678 664 (1,941 ) 678 Comprehensive loss attributable to noncontrolling interests — — — 3 — 3 Total comprehensive income (loss) $ (711 ) $ (1,377 ) $ (636 ) $ (95 ) $ 2,108 $ (711 ) Consolidating Statement of Comprehensive Income Nine Months Ended January 26, 2018 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Total Net sales $ — $ 879 $ — $ 21,807 $ (877 ) $ 21,809 Costs and expenses: Cost of products sold — 702 — 6,548 (581 ) 6,669 Research and development expense — 495 — 1,169 — 1,664 Selling, general, and administrative expense 9 1,089 — 6,544 — 7,642 Amortization of intangible assets — 6 — 1,369 — 1,375 Restructuring charges, net — 2 — 21 — 23 Certain litigation charges — 24 — 37 — 61 Gain on sale of businesses — — — (697 ) — (697 ) Other operating expense (income), net 35 (1,334 ) — 1,981 (322 ) 360 Operating profit (loss) (44 ) (105 ) — 4,835 26 4,712 Other non-operating (income) expense, net — (57 ) (344 ) (1,036 ) 1,370 (67 ) Interest expense 172 1,330 155 542 (1,370 ) 829 Equity in net (income) loss of subsidiaries (1,855 ) (387 ) (1,666 ) — 3,908 — Income (loss) before income taxes 1,639 (991 ) 1,855 5,329 (3,882 ) 3,950 Income tax (benefit) provision (5 ) (3 ) — 2,328 — 2,320 Net income (loss) 1,644 (988 ) 1,855 3,001 (3,882 ) 1,630 Net loss attributable to noncontrolling interests — — — 14 — 14 Net income (loss) attributable to Medtronic 1,644 (988 ) 1,855 3,015 (3,882 ) 1,644 Other comprehensive income (loss), net of tax 1,231 1,228 1,231 1,194 (3,653 ) 1,231 Comprehensive loss attributable to noncontrolling interests — — — 14 — 14 Total comprehensive income (loss) $ 2,875 $ 240 $ 3,086 $ 4,209 $ (7,535 ) $ 2,875 Condensed Consolidating Balance Sheet January 25, 2019 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Total ASSETS Current assets: Cash and cash equivalents $ — $ 16 $ 336 $ 3,351 $ — $ 3,703 Investments — — — 5,439 — 5,439 Accounts receivable, net — — — 5,854 — 5,854 Inventories, net — 176 — 3,870 (180 ) 3,866 Intercompany receivable 46 20,062 — 36,870 (56,978 ) — Other current assets 9 159 3 1,844 — 2,015 Total current assets 55 20,413 339 57,228 (57,158 ) 20,877 Property, plant, and equipment, net — 1,439 — 3,154 — 4,593 Goodwill — 1,883 — 38,120 — 40,003 Other intangible assets, net — — — 20,835 — 20,835 Tax assets — 447 — 1,049 — 1,496 Investment in subsidiaries 63,260 76,021 64,146 — (203,427 ) — Intercompany loans receivable 3,000 21 30,022 33,786 (66,829 ) — Other assets — 255 — 671 — 926 Total assets $ 66,315 $ 100,479 $ 94,507 $ 154,843 $ (327,414 ) $ 88,730 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ 1 $ 1,000 $ 355 $ — $ 1,356 Accounts payable — 459 — 1,247 — 1,706 Intercompany payable — 20,271 16,601 20,106 (56,978 ) — Accrued compensation 4 733 — 1,059 — 1,796 Accrued income taxes — — — 648 — 648 Other accrued expenses 20 557 32 2,738 — 3,347 Total current liabilities 24 22,021 17,633 26,153 (56,978 ) 8,853 Long-term debt — 20,620 845 2,209 — 23,674 Accrued compensation and retirement benefits — 836 — 477 — 1,313 Accrued income taxes 10 650 — 2,214 — 2,874 Intercompany loans payable 16,452 13,879 19,794 16,704 (66,829 ) — Deferred tax liabilities — — — 1,356 — 1,356 Other liabilities — 41 — 678 — 719 Total liabilities 16,486 58,047 38,272 49,791 (123,807 ) 38,789 Shareholders’ equity 49,829 42,432 56,235 104,940 (203,607 ) 49,829 Noncontrolling interests — — — 112 — 112 Total equity 49,829 42,432 56,235 105,052 (203,607 ) 49,941 Total liabilities and equity $ 66,315 $ 100,479 $ 94,507 $ 154,843 $ (327,414 ) $ 88,730 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 73,495 61,461 — (195,337 ) — Intercompany loans receivable 3,000 6,519 19,337 34,196 (63,052 ) — Other assets — 223 — 855 — 1,078 Total assets $ 63,424 $ 107,862 $ 80,799 $ 155,268 $ (315,960 ) $ 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 41,496 53,378 100,588 (195,462 ) 50,720 Noncontrolling interests — — — 102 — 102 Total equity 50,720 41,496 53,378 100,690 (195,462 ) 50,822 Total liabilities and equity $ 63,424 $ 107,862 $ 80,799 $ 155,268 $ (315,960 ) $ 91,393 Condensed Consolidating Statement of Cash Flows Nine Months Ended January 25, 2019 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Total Operating Activities: Net cash provided by (used in) operating activities $ 100 $ (619 ) $ 200 $ 5,239 $ — $ 4,920 Investing Activities: Acquisitions, net of cash acquired — — — (1,615 ) — (1,615 ) Additions to property, plant, and equipment — (207 ) — (592 ) — (799 ) Purchases of investments — — — (1,987 ) — (1,987 ) Sales and maturities of investments — 76 — 4,083 — 4,159 Capital contribution paid (18 ) (47 ) — — 65 — Other investing activities — — — (3 ) — (3 ) Net cash provided by (used in) investing activities (18 ) (178 ) — (114 ) 65 (245 ) Financing Activities: Change in current debt obligations, net — — (696 ) — — (696 ) Issuance of long-term debt — — — 3 — 3 Payments on long-term debt — — — (29 ) — (29 ) Dividends to shareholders (2,022 ) — — — — (2,022 ) Issuance of ordinary shares 891 — — — — 891 Repurchase of ordinary shares (2,728 ) — — — — (2,728 ) Net intercompany loan borrowings (repayments) 3,777 793 814 (5,384 ) — — Capital contribution received — — — 65 (65 ) — Other financing activities — — 17 (7 ) — 10 Net cash provided by (used in) financing activities (82 ) 793 135 (5,352 ) (65 ) (4,571 ) Effect of exchange rate changes on cash and cash equivalents — — — (70 ) — (70 ) Net change in cash and cash equivalents — (4 ) 335 (297 ) — 34 Cash and cash equivalents at beginning of period — 20 1 3,648 — 3,669 Cash and cash equivalents at end of period $ — $ 16 $ 336 $ 3,351 $ — $ 3,703 Condensed Consolidating Statement of Cash Flows Nine Months Ended January 26, 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 (used in) operating activities $ 172 $ (958 ) $ 200 $ 4,232 $ — $ 3,646 Investing Activities: Acquisitions, net of cash acquired — — — (111 ) — (111 ) Proceeds from sale of businesses — — — 6,058 — 6,058 Additions to property, plant, and equipment — (234 ) — (542 ) — (776 ) Purchases of investments — — — (2,479 ) — (2,479 ) Sales and maturities of investments — — — 3,060 — 3,060 Capital contribution paid — (59 ) (4,200 ) — 4,259 — Other investing activities — — — (5 ) — (5 ) Net cash provided by (used in) investing activities — (293 ) (4,200 ) 5,981 4,259 5,747 Financing Activities: Change in current debt obligations, net — — (397 ) 6 — (391 ) Issuance of long-term debt — — — 21 — 21 Payments on long-term debt — (3,000 ) — (1,167 ) — (4,167 ) Dividends to shareholders (1,870 ) — — — — (1,870 ) Issuance of ordinary shares 333 — — — — 333 Repurchase of ordinary shares (1,964 ) — — — — (1,964 ) Net intercompany loan borrowings (repayments) 3,329 4,244 4,453 (12,026 ) — — Capital contribution received — — — 4,259 (4,259 ) — Other financing activities — — — (88 ) — (88 ) Net cash provided by (used in) financing activities (172 ) 1,244 4,056 (8,995 ) (4,259 ) (8,126 ) Effect of exchange rate changes on cash and cash equivalents — — — 124 — 124 Net change in cash and cash equivalents — (7 ) 56 1,342 — 1,391 Cash and cash equivalents at beginning of period — 45 5 4,917 — 4,967 Cash and cash equivalents at end of period $ — $ 38 $ 61 $ 6,259 $ — $ 6,358 Consolidating Statement of Comprehensive Income Three Months Ended January 25, 2019 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ — $ — $ 7,546 $ — $ 7,546 Costs and expenses: Cost of products sold — — — 2,265 — 2,265 Research and development expense — — — 561 — 561 Selling, general, and administrative expense 2 — 1 2,593 — 2,596 Amortization of intangible assets — — — 436 — 436 Restructuring charges, net — — — 26 — 26 Certain litigation charges — — — 63 — 63 Other operating expense, net 15 — — 42 — 57 Operating profit (loss) (17 ) — (1 ) 1,560 — 1,542 Other non-operating (income) expense, net — (9 ) (207 ) (190 ) 335 (71 ) Interest expense 125 23 132 298 (335 ) 243 Equity in net (income) loss of subsidiaries (1,410 ) (655 ) (1,336 ) — 3,401 — Income (loss) before income taxes 1,268 641 1,410 1,452 (3,401 ) 1,370 Income tax (benefit) provision (1 ) — — 100 — 99 Net income (loss) 1,269 641 1,410 1,352 (3,401 ) 1,271 Net loss attributable to noncontrolling interests — — — (2 ) — (2 ) Net income (loss) attributable to Medtronic 1,269 641 1,410 1,350 (3,401 ) 1,269 Other comprehensive income (loss), net of tax 154 95 154 154 (403 ) 154 Comprehensive income attributable to noncontrolling interests — — — (2 ) — (2 ) Total comprehensive income (loss) $ 1,423 $ 736 $ 1,564 $ 1,504 $ (3,804 ) $ 1,423 Consolidating Statement of Comprehensive Income Nine Months Ended January 25, 2019 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Total Net sales $ — $ — $ — $ 22,411 $ — $ 22,411 Costs and expenses: Cost of products sold — — — 6,672 — 6,672 Research and development expense — — — 1,736 — 1,736 Selling, general, and administrative expense 8 1 2 7,787 — 7,798 Amortization of intangible assets — — — 1,327 — 1,327 Restructuring charges, net — — — 112 — 112 Certain litigation charges — — — 166 — 166 Other operating expense, net 40 — — 238 — 278 Operating profit (loss) (48 ) (1 ) (2 ) 4,373 — 4,322 Other non-operating (income) expense, net — (29 ) (559 ) (614 ) 893 (309 ) Interest expense 333 66 348 872 (893 ) 726 Equity in net (income) loss of subsidiaries (3,835 ) (2,271 ) (3,626 ) — 9,732 — Income (loss) before income taxes 3,454 2,233 3,835 4,115 (9,732 ) 3,905 Income tax (benefit) provision (5 ) — — 442 — 437 Net income (loss) 3,459 2,233 3,835 3,673 (9,732 ) 3,468 Net loss attributable to noncontrolling interests — — — (9 ) — (9 ) Net income (loss) attributable to Medtronic 3,459 2,233 3,835 3,664 (9,732 ) 3,459 Other comprehensive income (loss), net of tax (719 ) 69 (719 ) (722 ) 1,369 (722 ) Comprehensive income attributable to noncontrolling interests — — — (6 ) — (6 ) Total comprehensive income (loss) $ 2,740 $ 2,302 $ 3,116 $ 2,945 $ (8,363 ) $ 2,740 Consolidating Statement of Comprehensive Income Three Months Ended January 26, 2018 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Total Net sales $ — $ — $ — $ 7,369 $ — $ 7,369 Costs and expenses: Cost of products sold — — — 2,194 — 2,194 Research and development expense — — — 559 — 559 Selling, general, and administrative expense 4 — — 2,519 — 2,523 Amortization of intangible assets — — — 461 — 461 Restructuring charges, net — — — 7 — 7 Certain litigation charges — — — 61 — 61 Gain on sale of businesses — — — — — — Other operating expense, net 10 — — 118 — 128 Operating profit (loss) (14 ) — — 1,450 — 1,436 Other non-operating (income) expense, net — (13 ) (137 ) 83 206 139 Interest expense 63 19 73 321 (206 ) 270 Equity in net (income) loss of subsidiaries 1,314 (921 ) 1,378 — (1,771 ) — Income (loss) before income taxes (1,391 ) 915 (1,314 ) 1,046 1,771 1,027 Income tax (benefit) provision (2 ) — — 2,421 — 2,419 Net income (loss) (1,389 ) 915 (1,314 ) (1,375 ) 1,771 (1,392 ) Net loss attributable to noncontrolling interests — — — 3 — 3 Net income (loss) attributable to Medtronic (1,389 ) 915 (1,314 ) (1,372 ) 1,771 (1,389 ) Other comprehensive (loss) income, net of tax 678 52 678 678 (1,408 ) 678 Comprehensive loss attributable to — — — 3 — 3 Total comprehensive income (loss) $ (711 ) $ 967 $ (636 ) $ (694 ) $ 363 $ (711 ) Consolidating Statement of Comprehensive Income Nine Months Ended January 26, 2018 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Total Net sales $ — $ — $ — $ 21,809 $ — $ 21,809 Costs and expenses: Cost of products sold — — — 6,669 — 6,669 Research and development expense — — — 1,664 — 1,664 Selling, general, and administrative expense 9 — 1 7,632 — 7,642 Amortization of intangible assets — — — 1,375 — 1,375 Restructuring charges, net — — — 23 — 23 Certain litigation charges — — — 61 — 61 Gain on sale of businesses — — — (697 ) — (697 ) Other operating expense, net 35 1 — 324 — 360 Operating profit (loss) (44 ) (1 ) (1 ) 4,758 — 4,712 Other non-operating (income) expense, net — (45 ) (355 ) (169 ) 502 (67 ) Interest expense 172 63 156 940 (502 ) 829 Equity in net (income) loss of subsidiaries (1,855 ) (3,062 ) (1,657 ) — 6,574 — Income (loss) before income taxes 1,639 3,043 1,855 3,987 (6,574 ) 3,950 Income tax (benefit) provision (5 ) — — 2,325 — 2,320 Net income (loss) 1,644 3,043 1,855 1,662 (6,574 ) 1,630 Net loss attributable to noncontrolling interests — — — 14 — 14 Net income (loss) attributable to Medtronic 1,644 3,043 1,855 1,676 (6,574 ) 1,644 Other comprehensive income (loss), net of tax 1,231 (7 ) 1,231 1,231 (2,455 ) 1,231 Comprehensive loss attributable to — — — 14 — 14 Total comprehensive income (loss) $ 2,875 $ 3,036 $ 3,086 $ 2,907 $ (9,029 ) $ 2,875 Condensed Consolidating Balance Sheet January 25, 2019 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Total ASSETS Current assets: Cash and cash equivalents $ — $ — $ 336 $ 3,367 $ — $ 3,703 Investments — — — 5,439 — 5,439 Accounts receivable, net — — — 5,854 — 5,854 Inventories, net — — — 3,866 — 3,866 Intercompany receivable 46 — 1,362 16,616 (18,024 ) — Other current assets 9 — 3 2,003 — 2,015 Total current assets 55 — 1,701 37,145 (18,024 ) 20,877 Property, plant, and equipment, net — — — 4,593 — 4,593 Goodwill — — — 40,003 — 40,003 Other intangible assets, net — — — 20,835 — 20,835 Tax assets — — — 1,496 — 1,496 Investment in subsidiaries 63,260 33,203 62,790 — (159,253 ) — Intercompany loans receivable 3,000 1,061 30,022 19,894 (53,977 ) — Other assets — — — 926 — 926 Total assets $ 66,315 $ 34,264 $ 94,513 $ 124,892 $ (231,254 ) $ 88,730 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ — $ 1,000 $ 356 $ — $ 1,356 Accounts payable — — — 1,706 — 1,706 Intercompany payable — 1,302 16,601 121 (18,024 ) — Accrued compensation 4 — — 1,792 — 1,796 Accrued income taxes — — — 648 — 648 Other accrued expenses 20 12 37 3,278 — 3,347 Total current liabilities 24 1,314 17,638 7,901 (18,024 ) 8,853 Long-term debt — 2,095 845 20,734 — 23,674 Accrued compensation and retirement benefits — — — 1,313 — 1,313 Accrued income taxes 10 — — 2,864 — 2,874 Intercompany loans payable 16,452 100 19,794 17,631 (53,977 ) — Deferred tax liabilities — — — 1,356 — 1,356 Other liabilities — — 1 718 — 719 Total liabilities 16,486 3,509 38,278 52,517 (72,001 ) 38,789 Shareholders’ equity 49,829 30,755 56,235 72,263 (159,253 ) 49,829 Noncontrolling interests — — — 112 — 112 Total equity 49,829 30,755 56,235 72,375 (159,253 ) 49,941 Total liabilities and equity $ 66,315 $ 34,264 $ 94,513 $ 124,892 $ (231,254 ) $ 88,730 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 31,239 60,122 — (151,742 ) — Intercompany loans receivable 3,000 1,291 19,337 19,436 (43,064 ) — Other assets — — — 1,078 — 1,078 Total assets $ 63,424 $ 32,530 $ 80,803 $ 116,382 $ (201,746 ) $ 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 29,015 53,378 69,349 (151,742 ) 50,720 Noncontrolling interests — — — 102 — 102 Total Equity 50,720 29,015 53,378 69,451 (151,742 ) 50,822 Total liabilities and equity $ 63,424 $ 32,530 $ 80,803 $ 116,382 $ (201,746 ) $ 91,393 Condensed Consolidating Statement of Cash Flows Nine Months Ended January 25, 2019 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by (used in) operating activities $ 100 $ (62 ) $ 219 $ 4,663 $ — $ 4,920 Investing Activities: Acquisitions, net of cash acquired — — — (1,615 ) — (1,615 ) Additions to property, plant, and equipment — — — (799 ) — (799 ) Purchases of investments — — — (1,987 ) — (1,987 ) Sales and maturities of investments — — — 4,159 — 4,159 Capital contribution paid (18 ) (187 ) — — 205 — Other investing activities — — — (3 ) — (3 ) Net cash provided by (used in) investing activities (18 ) (187 ) — (245 ) 205 (245 ) Financing Activities: Change in current debt obligations, net — — (696 ) — — (696 ) Issuance of long-term debt — — — 3 — 3 Payments on long-term debt — — — (29 ) — (29 ) Dividends to shareholders (2,022 ) — — — — (2,022 ) Issuance of ordinary shares 891 — — — — 891 Repurchase of ordinary shares (2,728 ) — — — — (2,728 ) Net intercompany loan borrowings (repayments) 3,777 249 795 (4,821 ) — — Capital contribution received — — — 205 (205 ) — Other financing activities — — 17 (7 ) — 10 Net cash provided by (used in) financing activities (82 ) 249 116 (4,649 ) (205 ) (4,571 ) Effect of exchange rate changes on cash and cash equivalents — — — (70 ) — (70 ) Net change in cash and cash equivalents — — 335 (301 ) — 34 Cash and cash equivalents at beginning of period — — 1 3,668 — 3,669 Cash and cash equivalents at end of period $ — $ — $ 336 $ 3,367 $ — $ 3,703 Condensed Consolidating Statement of Cash Flows Nine Months Ended January 26, 2018 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by (used in) operating activities $ 172 $ 978 $ 210 $ 3,334 $ (1,048 ) $ 3,646 Investing Activities: Acquisitions, net of cash acquired — — — (111 ) — (111 ) Proceeds from sale of businesses — — — 6,058 — 6,058 Additions to property, plant, and equipment — — — (776 ) — (776 ) Purchases of investments — — — (2,479 ) — (2,479 ) Sales and maturities of investments — — — 3,060 — 3,060 Capital contributions paid — (531 ) (4,200 ) — 4,731 — Other investing activities — — — (5 ) — (5 ) Net cash provided by (used in) investing activities — (531 ) (4,200 ) 5,747 4,731 5,747 Financing Activities: Change in current debt obligations, net — — (397 ) 6 — (391 ) Issuance of long-term debt — — — 21 — 21 Payments on long-term debt — (1,150 ) — (3,017 ) — (4,167 ) Dividends to shareholders (1,870 ) — — — — (1,870 ) Issuance of ordinary shares 333 — — — — 333 Repurchase of ordinary shares (1,964 ) — — — — (1,964 ) Net intercompany loan borrowings (repayments) 3,329 670 4,443 (8,442 ) — — Intercompany dividend paid — — — (1,048 ) 1,048 — Capital contributions received — — — 4,731 (4,731 ) — Other financing activities — — — (88 ) — (88 ) Net cash provided by (used in) financing activities (172 ) (480 ) 4,046 (7,837 ) (3,683 ) (8,126 ) Effect of exchange rate changes on cash and cash equivalents — — — 124 — 124 Net change in cash and cash equivalents — (33 ) 56 1,368 — 1,391 Cash and cash equivalents at beginning of period — 33 5 4,929 — 4,967 Cash and cash equivalents at end of period $ — $ — $ 61 $ 6,297 $ — $ 6,358 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jan. 25, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements of Medtronic plc and its subsidiaries (Medtronic plc, Medtronic, or the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S.) (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the consolidated financial statements include all of the adjustments necessary for a fair statement in conformity with U.S. GAAP. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. For the purpose of providing more concise consolidated statements of income, amounts previously reported in acquisition-related items were reclassified to selling, general, and administrative expense and other operating expense, net; amounts previously reported in divestiture-related items were reclassified to selling, general, and administrative expense; amounts previously reported in special charge were reclassified to other operating expense, net , and amounts previously reported in investment loss and interest income were reclassified to other non-operating (income) expense, net . Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. |
Consolidation | The accompanying unaudited 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. |
Fiscal Period | The Company’s fiscal years 2019 , 2018 , and 2017 will end or ended on April 26, 2019 , April 27, 2018 , and April 28, 2017 , respectively. |
New Accounting Pronouncements | Recently Adopted In May 2014, the Financial Accounting Standards Board (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. The Company adopted this guidance using the modified retrospective method in the first quarter of fiscal year 2019, and elected to apply the guidance only to contracts that were not completed as of the date of initial application. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. 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. The Company adopted this guidance in the first quarter of fiscal year 2019 on a prospective basis. As a result of the adoption, the Company reclassified $47 million from accumulated other comprehensive loss to the opening balance of retained earnings as of April 28, 2018. In March 2017, the FASB issued guidance which changes the financial statement presentation requirements for pension and other postretirement benefit expense. While service cost will continue to be recognized in the same financial statement line items as other current employee compensation costs, the guidance requires all other non-service components of net benefit costs to be classified and presented outside of income from operations. The Company adopted this guidance in the first quarter of fiscal year 2019, and the consolidated statements of income were retrospectively adjusted. For the three and nine months ended January 26, 2018 , the Company reclassified $10 million of expense and $4 million of income, respectively, of non-service components of net periodic benefit costs, which were previously presented as a component of operating profit, to other non-operating (income) expense, net . In August 2018, the SEC adopted a final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, that amends certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. The amendments also expanded the disclosure requirements on the analysis of shareholders' equity for interim financial statements, in which registrants must now analyze changes in shareholders’ equity, in the form of reconciliation, for the current and comparative year-to-date periods, with subtotals for each interim period. This final rule was effective on November 5, 2018. The Company has adopted all relevant disclosure requirements, with the exception of the shareholders’ equity interim disclosures, which is allowed to be adopted in a future interim period. Not Yet Adopted 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 will be adopted using the modified retrospective method by applying the new guidance as of the transition date with a cumulative-effect adjustment to the opening balance of retained earnings. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020. 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. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Jan. 25, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The table below illustrates net sales by segment and division for the three and nine months ended January 25, 2019 and January 26, 2018 : Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Cardiac Rhythm & Heart Failure $ 1,397 $ 1,457 $ 4,295 $ 4,314 Coronary & Structural Heart 913 886 2,736 2,557 Aortic, Peripheral & Venous 476 457 1,424 1,348 Cardiac and Vascular Group 2,786 2,800 8,455 8,219 Surgical Innovations 1,434 1,384 4,224 4,024 Respiratory, Gastrointestinal, & Renal 690 657 1,999 2,455 Minimally Invasive Therapies Group 2,124 2,041 6,223 6,479 Spine 655 661 1,963 1,969 Brain Therapies 650 585 1,867 1,682 Specialty Therapies 407 398 1,196 1,132 Pain Therapies 314 300 942 833 Restorative Therapies Group 2,026 1,944 5,968 5,616 Diabetes Group 610 584 1,765 1,495 Total $ 7,546 $ 7,369 $ 22,411 $ 21,809 The table below illustrates net sales by market geography for each segment for the three and nine months ended January 25, 2019 and January 26, 2018 : U.S. (1) Non-U.S. Developed Markets (2) Emerging Markets (3) Three months ended Three months ended Three months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Cardiac and Vascular Group $ 1,369 $ 1,395 $ 924 $ 934 $ 493 $ 471 Minimally Invasive Therapies Group 930 862 796 807 398 372 Restorative Therapies Group 1,354 1,300 435 429 237 215 Diabetes Group 348 355 213 185 49 44 Total $ 4,001 $ 3,912 $ 2,368 $ 2,355 $ 1,177 $ 1,102 U.S. (1) Non-U.S. Developed Markets (2) Emerging Markets (3) Nine months ended Nine months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Cardiac and Vascular Group $ 4,240 $ 4,151 $ 2,766 $ 2,716 $ 1,449 $ 1,352 Minimally Invasive Therapies Group 2,659 2,902 2,396 2,455 1,168 1,122 Restorative Therapies Group 4,005 3,779 1,275 1,217 688 620 Diabetes Group 1,006 856 619 521 140 118 Total $ 11,910 $ 11,688 $ 7,056 $ 6,909 $ 3,445 $ 3,212 (1) U.S. includes the United States and U.S. territories. (2) Non-U.S. developed markets include Japan, Australia, New Zealand, Korea, Canada, and the countries of Western Europe. (3) Emerging markets include the countries of the Middle East, Africa, Latin America, Eastern Europe, and the countries of Asia that are not included in the non-U.S. developed markets, as defined above. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jan. 25, 2019 | |
Business Combinations [Abstract] | |
Fair Value of Assets Acquired and Liabilities Assumed | The acquisition date fair values of the assets acquired and liabilities assumed were as follows: (in millions) Mazor Robotics All Other Total Cash and cash equivalents $ 109 $ 3 $ 112 Investments 52 — 52 Accounts receivable 10 2 12 Inventory 8 27 35 Other current assets 2 3 5 Property, plant, and equipment 3 29 32 Goodwill 1,214 146 1,360 Other intangible assets 400 211 611 Tax assets — 6 6 Total assets acquired 1,798 427 2,225 Current liabilities 56 45 101 Accrued income taxes 3 5 8 Deferred tax liabilities 65 — 65 Total liabilities assumed 124 50 174 Net assets acquired $ 1,674 $ 377 $ 2,051 |
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: Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Beginning balance $ 203 $ 190 $ 173 $ 246 Purchase price contingent consideration 5 13 51 28 Payments (1 ) (20 ) (8 ) (66 ) Change in fair value (59 ) (12 ) (68 ) (37 ) Ending balance $ 148 $ 171 $ 148 $ 171 |
Fair Value Measurements, Contingent Consideration, Significant Unobservable Inputs | The recurring Level 3 fair value measurements of contingent consideration for which a liability is recorded include the following significant unobservable inputs: Fair Value at (in millions) January 25, 2019 Valuation Technique Unobservable Input Range Discount rate 11.5% - 32.5% Revenue and other performance-based payments $97 Discounted cash flow Probability of payment 100% Projected fiscal year of payment 2019 - 2025 Discount rate 5.5% Product development and other milestone-based payments $51 Discounted cash flow Probability of payment 75% - 100% Projected fiscal year of payment 2019 - 2027 The following table presents the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 at January 25, 2019 : 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% |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Jan. 25, 2019 | |
Enterprise Excellence | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs | The following table summarizes the activity related to the Enterprise Excellence restructuring program for the nine months ended January 25, 2019 : (in millions) Employee Termination Benefits Associated Costs (1) Asset Write-Downs (2) Other Costs Total April 27, 2018 $ 27 $ 2 $ — $ — $ 29 Charges 107 131 13 13 264 Cash payments (97 ) (128 ) — (5 ) (230 ) Settled non-cash — — (13 ) — (13 ) January 25, 2019 $ 37 $ 5 $ — $ 8 $ 50 (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. (2) Recognized within selling, general, and administrative expense in the consolidated statements of income. |
Cost Synergies | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs | A summary of the restructuring accrual and related activity is presented below: (in millions) Employee Termination Benefits Other Costs Total April 27, 2018 $ 116 $ 22 $ 138 Cash payments (34 ) (18 ) (52 ) Accrual adjustments (8 ) — (8 ) January 25, 2019 $ 74 $ 4 $ 78 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Jan. 25, 2019 | |
Investments [Abstract] | |
Investments by Category and Related Balance Sheet Classification, Debt Securities | The following tables summarize the Company's investments in available-for-sale debt securities by significant investment category and the related consolidated balance sheet classification at January 25, 2019 and April 27, 2018 : January 25, 2019 Valuation Balance Sheet Classification (in millions) Cost Unrealized Gains Unrealized Losses Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 523 $ — $ (15 ) $ 508 $ 508 $ — Level 2: Corporate debt securities 3,259 3 (60 ) 3,202 3,202 — U.S. government and agency securities 841 — (14 ) 827 827 — Mortgage-backed securities 464 1 (28 ) 437 437 — Non-U.S. government and agency securities 5 — — 5 5 — Other asset-backed securities 464 — (4 ) 460 460 — Total Level 2 5,033 4 (106 ) 4,931 4,931 — Level 3: Auction rate securities 47 — (3 ) 44 — 44 Total available-for-sale debt securities $ 5,603 $ 4 $ (124 ) $ 5,483 $ 5,439 $ 44 April 27, 2018 Valuation Balance Sheet Classification (in millions) Cost Unrealized Gains Unrealized Losses Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 732 $ — $ (26 ) $ 706 $ 706 $ — 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 — Total Level 2 6,184 22 (136 ) 6,070 6,070 — Level 3: Auction rate securities 47 — (3 ) 44 — 44 Total available-for-sale debt securities $ 6,963 $ 22 $ (165 ) $ 6,820 $ 6,776 $ 44 |
Available-For-Sale Debt Securities in Continuous Unrealized Loss Position | The following tables present the gross unrealized losses and fair values of the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category at January 25, 2019 and April 27, 2018 : January 25, 2019 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government and agency securities $ 42 $ — $ 812 $ (29 ) Corporate debt securities 1,543 (21 ) 1,168 (39 ) Mortgage-backed securities 87 (1 ) 287 (27 ) Other asset-backed securities 313 (3 ) 81 (1 ) Auction rate securities — — 44 (3 ) Total $ 1,985 $ (25 ) $ 2,392 $ (99 ) April 27, 2018 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government and agency securities $ 762 $ (33 ) $ 374 $ (17 ) Corporate debt securities 2,620 (58 ) 272 (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 ) Auction rate securities — — 44 (3 ) Total $ 4,094 $ (107 ) $ 891 $ (58 ) |
Unobservable Inputs Utilized in the Fair Value Measurement of Auction Rate Securities Classified as Level 3 | The recurring Level 3 fair value measurements of contingent consideration for which a liability is recorded include the following significant unobservable inputs: Fair Value at (in millions) January 25, 2019 Valuation Technique Unobservable Input Range Discount rate 11.5% - 32.5% Revenue and other performance-based payments $97 Discounted cash flow Probability of payment 100% Projected fiscal year of payment 2019 - 2025 Discount rate 5.5% Product development and other milestone-based payments $51 Discounted cash flow Probability of payment 75% - 100% Projected fiscal year of payment 2019 - 2027 The following table presents the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 at January 25, 2019 : 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% |
Activity Related to the Company's Debt Securities Portfolio | Activity related to the Company’s debt securities portfolio is as follows: Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Proceeds from sales $ 1,301 $ 667 $ 3,217 $ 2,618 Gross realized gains 9 3 17 22 Gross realized losses (36 ) (2 ) (55 ) (16 ) |
Available-for-sale Debt Securities Contractual Maturities | The January 25, 2019 balance of available-for-sale debt securities 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) January 25, 2019 Due in one year or less $ 1,139 Due after one year through five years 1,867 Due after five years through ten years 2,358 Due after ten years 119 Total $ 5,483 |
Summary of Equity and Other Investments | The following table summarizes the Company's equity and other investments at January 25, 2019 , which are classified as other assets in the consolidated balance sheets: (in millions) January 25, 2019 Investments with readily determinable fair values (marketable equity securities) $ 20 Investments without readily determinable fair values 240 Equity method and other investments 70 Total equity and other investments $ 330 |
Investments by Category and Related Balance Sheet Classification, Equity and Other Investments | The following table summarizes the values of the Company's equity and other investments by significant investment category and the related 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: Marketable equity securities $ 63 $ 99 $ — $ 162 $ — $ 162 Level 2: Debt funds 739 — (154 ) 585 585 — Investments measured at net asset value (1) : Debt funds 199 — (2 ) 197 197 — Total available-for-sale equity securities 1,001 99 (156 ) 944 782 162 Cost method, equity method, and other investments: Level 3: Cost method, equity method, and other investments 353 — — N/A — 353 Total equity and other investments $ 1,354 $ 99 $ (156 ) $ 944 $ 782 $ 515 (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. |
Activity Related to the Company's Equity and Other Investments Portfolio | The table below includes activity related to the Company’s portfolio of equity and other investments. Gains and losses on equity and other investments are recognized in other non-operating (income) expense, net in the consolidated statements of income. Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 (1) January 25, 2019 January 26, 2018 (1) Proceeds from sales $ 33 $ 39 $ 941 $ 442 Gross gains 8 8 131 15 Gross losses (1 ) — (30 ) (1 ) Impairment losses recognized — (227 ) (12 ) (228 ) (1) Gains and losses for the three and nine months ended January 26, 2018 represent realized amounts. |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 9 Months Ended |
Jan. 25, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | The Company's debt obligations consisted of the following: (in millions) Maturity by Fiscal Year January 25, 2019 April 27, 2018 Current debt obligations 2019 - 2020 $ 1,356 $ 2,058 Long-term debt Floating rate five-year 2015 senior notes 2020 500 500 2.500 percent five-year 2015 senior notes 2020 2,500 2,500 4.200 percent ten-year 2010 CIFSA senior notes 2021 600 600 4.125 percent ten-year 2011 senior notes 2021 500 500 3.150 percent seven-year 2015 senior notes 2022 2,500 2,500 3.125 percent ten-year 2012 senior notes 2022 675 675 3.200 percent ten-year 2012 CIFSA senior notes 2023 650 650 2.750 percent ten-year 2013 senior notes 2023 530 530 2.950 percent ten-year 2013 CIFSA senior notes 2024 310 310 3.625 percent ten-year 2014 senior notes 2024 850 850 3.500 percent ten-year 2015 senior notes 2025 4,000 4,000 3.350 percent ten-year 2017 senior notes 2027 850 850 4.375 percent twenty-year 2015 senior notes 2035 2,382 2,382 6.550 percent thirty-year 2008 CIFSA senior notes 2038 374 374 6.500 percent thirty-year 2009 senior notes 2039 300 300 5.550 percent thirty-year 2010 senior notes 2040 500 500 4.500 percent thirty-year 2012 senior notes 2042 400 400 4.000 percent thirty-year 2013 senior notes 2043 325 325 4.625 percent thirty-year 2014 senior notes 2044 650 650 4.625 percent thirty-year 2015 senior notes 2045 4,150 4,150 Bank borrowings 2020 - 2022 94 125 Debt premium, net 2020 - 2045 108 120 Capital lease obligations 2020 - 2025 21 21 Interest rate swaps 2021 - 2022 — (6 ) Deferred financing costs 2020 - 2045 (95 ) (107 ) Long-term debt $ 23,674 $ 23,699 |
Derivatives and Currency Exch_2
Derivatives and Currency Exchange Risk Management (Tables) | 9 Months Ended |
Jan. 25, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Amount and Location of Gains (Losses) in Statements of Income, Derivative Instruments Not Designated as Hedging Instruments | The amounts and classification of the gains (losses) in the consolidated statements of income related to derivative instruments not designated as hedging instruments for the three and nine months ended January 25, 2019 and January 26, 2018 were as follows: Three months ended Nine months ended (in millions) Classification January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Currency exchange rate contracts Other operating expense, net $ (30 ) $ (181 ) $ 171 $ (318 ) Total return swaps Other operating expense, net — 23 — 38 Total $ (30 ) $ (158 ) $ 171 $ (280 ) |
Amount and Location of Gains (Losses) in Statements of Income, Derivative Instruments Designated as Cash Flow Hedges | The amounts of the gains (losses) recognized in the consolidated statements of income related to derivative instruments designated as cash flow hedges for the three and nine months ended January 25, 2019 and January 26, 2018 were as follows: Three months ended Nine months ended (in millions) Classification January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Currency exchange rate contracts Other operating expense, net $ 48 $ (11 ) $ 56 $ 1 |
Amounts of Gains (Losses) Recognized in AOCI | The amount of the gains (losses) recognized in AOCI related to the effective portion of currency exchange rate contract derivative instruments designated as cash flow hedges for the three and nine months ended January 25, 2019 and January 26, 2018 were as follows: Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Currency exchange rate contracts $ 25 $ (287 ) $ 469 $ (507 ) |
Classification and Fair Value Amounts of Derivative Instruments in Balance Sheets | The following tables summarize the balance sheet classification and fair value of derivative instruments included in the consolidated balance sheets at January 25, 2019 and April 27, 2018 . 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. January 25, 2019 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 $ 169 Other accrued expenses $ 7 Interest rate contracts Other assets 7 Other liabilities 7 Currency exchange rate contracts Other assets 68 Other liabilities 7 Total derivatives designated as hedging instruments 244 21 Derivatives not designated as hedging instruments Currency exchange rate contracts Other current assets 16 Other accrued expenses 25 Total return swap Other current assets — Other accrued expenses 4 Cross currency interest rate contracts Other current assets 8 Other accrued expenses 3 Cross currency interest rate contracts Other assets 1 Other liabilities 1 Total derivatives not designated as hedging instruments 25 33 Total derivatives $ 269 $ 54 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 |
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. January 25, 2019 April 27, 2018 (in millions) Level 1 Level 2 Level 1 Level 2 Derivative assets $ 253 $ 16 $ 79 $ 39 Derivative liabilities 39 15 238 20 |
Offsetting Assets | The following tables 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. January 25, 2019 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Securities Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 253 $ (33 ) $ (17 ) $ — $ 203 Interest rate contracts 7 (4 ) — — 3 Cross currency interest rate contracts 9 (1 ) — — 8 269 (38 ) (17 ) — 214 Derivative liabilities: Currency exchange rate contracts (39 ) 31 — — (8 ) Interest rate contracts (7 ) 6 — — (1 ) Total return swaps (4 ) — — — (4 ) Cross currency interest rate contracts (4 ) 1 — — (3 ) (54 ) 38 — — (16 ) Total $ 215 $ — $ (17 ) $ — $ 198 April 27, 2018 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Securities Collateral Posted (Received) 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 ) |
Offsetting Liabilities | The following tables 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. January 25, 2019 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Securities Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 253 $ (33 ) $ (17 ) $ — $ 203 Interest rate contracts 7 (4 ) — — 3 Cross currency interest rate contracts 9 (1 ) — — 8 269 (38 ) (17 ) — 214 Derivative liabilities: Currency exchange rate contracts (39 ) 31 — — (8 ) Interest rate contracts (7 ) 6 — — (1 ) Total return swaps (4 ) — — — (4 ) Cross currency interest rate contracts (4 ) 1 — — (3 ) (54 ) 38 — — (16 ) Total $ 215 $ — $ (17 ) $ — $ 198 April 27, 2018 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Securities Collateral Posted (Received) 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 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jan. 25, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Balances | Inventory balances, net of reserves, were as follows: (in millions) January 25, 2019 April 27, 2018 Finished goods $ 2,545 $ 2,407 Work in-process 560 496 Raw materials 761 676 Total $ 3,866 $ 3,579 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Jan. 25, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount 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 27, 2018 $ 6,791 $ 21,155 $ 9,717 $ 1,880 $ 39,543 Goodwill as a result of acquisitions — 82 1,254 24 1,360 Currency translation and other (82 ) (691 ) (126 ) (1 ) (900 ) January 25, 2019 $ 6,709 $ 20,546 $ 10,845 $ 1,903 $ 40,003 |
Gross Carrying Amount and Accumulated Amortization of Definite-Lived Intangible Assets | The following table presents the gross carrying amount and accumulated amortization of intangible assets: January 25, 2019 April 27, 2018 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 16,950 $ (3,854 ) $ 16,949 $ (3,139 ) Purchased technology and patents 11,469 (4,464 ) 11,569 (4,441 ) Trademarks and tradenames 570 (320 ) 822 (569 ) Other 88 (55 ) 94 (52 ) Total $ 29,077 $ (8,693 ) $ 29,434 $ (8,201 ) Indefinite-lived: IPR&D $ 451 $ 490 |
Gross Carrying Amount of Indefinite-Lived Intangible Assets | The following table presents the gross carrying amount and accumulated amortization of intangible assets: January 25, 2019 April 27, 2018 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 16,950 $ (3,854 ) $ 16,949 $ (3,139 ) Purchased technology and patents 11,469 (4,464 ) 11,569 (4,441 ) Trademarks and tradenames 570 (320 ) 822 (569 ) Other 88 (55 ) 94 (52 ) Total $ 29,077 $ (8,693 ) $ 29,434 $ (8,201 ) Indefinite-lived: IPR&D $ 451 $ 490 |
Estimated Future Aggregate Amortization Expense, Definite-Lived Intangible Assets | Estimated aggregate amortization expense by fiscal year based on the carrying value of definite-lived intangible assets at January 25, 2019 , excluding any possible future amortization associated with acquired IPR&D which has not yet met technological feasibility, is as follows: (in millions) Amortization Expense Remaining 2019 $ 437 2020 1,740 2021 1,723 2022 1,683 2023 1,614 2024 1,573 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jan. 25, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) Per Share | The table below sets forth the computation of basic and diluted earnings (loss) per share: Three months ended Nine months ended (in millions, except per share data) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Numerator: Net income (loss) attributable to ordinary shareholders $ 1,269 $ (1,389 ) $ 3,459 $ 1,644 Denominator: Basic – weighted average shares outstanding 1,342.8 1,354.0 1,348.1 1,357.2 Effect of dilutive securities: Employee stock options 6.9 — 7.9 8.1 Employee restricted stock units 3.0 — 3.2 3.4 Other — — 0.3 0.2 Diluted – weighted average shares outstanding 1,352.7 1,354.0 1,359.5 1,368.9 Basic earnings (loss) per share $ 0.95 $ (1.03 ) $ 2.57 $ 1.21 Diluted earnings (loss) per share $ 0.94 $ (1.03 ) $ 2.54 $ 1.20 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jan. 25, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Components and Classification of Stock-based Compensation Expense | The following table presents the components and classification of stock-based compensation expense for stock options, restricted stock, and employee stock purchase plan shares recognized for the three and nine months ended January 25, 2019 and January 26, 2018 : Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Stock options $ 11 $ 28 $ 62 $ 105 Restricted stock 43 38 144 145 Employee stock purchase plan 6 6 22 20 Total stock-based compensation expense $ 60 $ 72 $ 228 $ 270 Cost of products sold $ 5 $ 10 $ 23 $ 34 Research and development expense 8 8 29 29 Selling, general, and administrative expense 47 54 176 207 Total stock-based compensation expense 60 72 228 270 Income tax benefits (8 ) (12 ) (40 ) (69 ) Total stock-based compensation expense, net of tax $ 52 $ 60 $ 188 $ 201 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 9 Months Ended |
Jan. 25, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The net periodic benefit cost of the defined benefit pension plans included the following components for the three and nine months ended January 25, 2019 and January 26, 2018 : U.S. Non-U.S. Three months ended Three months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Service cost $ 27 $ 29 $ 15 $ 17 Interest cost 33 29 7 7 Expected return on plan assets (54 ) (51 ) (14 ) (13 ) Amortization of net actuarial loss 19 20 3 4 Plan settlement — 15 — — Net periodic benefit cost $ 25 $ 42 $ 11 $ 15 U.S. Non-U.S. Nine months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Service cost $ 81 $ 87 $ 45 $ 51 Interest cost 99 89 21 21 Expected return on plan assets (162 ) (155 ) (42 ) (39 ) Amortization of net actuarial loss 57 60 9 12 Plan settlement — 15 — — Net periodic benefit cost $ 75 $ 96 $ 33 $ 45 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income and Supplemental Equity Disclosure (Tables) | 9 Months Ended |
Jan. 25, 2019 | |
Equity [Abstract] | |
Changes in AOCI by Component | The following table provides changes in AOCI, net of tax, and by component: (in millions) Unrealized (Loss) Gain on Investment Securities Cumulative Translation Adjustment Net Change in Retirement Obligations Unrealized (Loss) Gain on Derivative Financial Instruments Total Accumulated Other Comprehensive (Loss) Income April 27, 2018 $ (194 ) $ (268 ) $ (1,117 ) $ (207 ) $ (1,786 ) Other comprehensive (loss) income before reclassifications (7 ) (1,124 ) — 353 (778 ) Reclassifications 30 — 65 (36 ) 59 Other comprehensive income (loss) 23 (1,124 ) 65 317 (719 ) Cumulative effect of change in accounting principle (1) 47 — — — 47 January 25, 2019 $ (124 ) $ (1,392 ) $ (1,052 ) $ 110 $ (2,458 ) (in millions) Unrealized (Loss) Gain on Investment Securities Cumulative Translation Adjustment Net Change in Retirement Obligations Unrealized Gain (Loss) on Derivative Financial Instruments Total Accumulated Other Comprehensive (Loss) Income April 28, 2017 $ (69 ) $ (1,452 ) $ (1,129 ) $ 37 $ (2,613 ) Other comprehensive income (loss) before reclassifications 50 1,559 (38 ) (351 ) 1,220 Reclassifications (9 ) (34 ) 49 5 11 Other comprehensive income (loss) 41 1,525 11 (346 ) 1,231 January 26, 2018 $ (28 ) $ 73 $ (1,118 ) $ (309 ) $ (1,382 ) (1) Refer to Note 2 to the consolidated financial statements for discussion regarding the adoption of accounting standards during the nine months ended January 25, 2019 . |
Supplemental Equity Schedule | The supplemental equity schedule below presents changes in the Company's total shareholders' equity and noncontrolling interests for the nine months ended January 25, 2019 and January 26, 2018 . (in millions) Total Shareholders' Equity Noncontrolling Interests Total Equity April 27, 2018 $ 50,720 $ 102 $ 50,822 Net income 3,459 9 3,468 Other comprehensive loss (719 ) (3 ) (722 ) Dividends to shareholders (2,022 ) — (2,022 ) Issuance of shares under stock purchase and award plans 826 — 826 Repurchase of ordinary shares (2,663 ) — (2,663 ) Stock-based compensation 228 — 228 Changes to noncontrolling ownership interests — 4 4 January 25, 2019 $ 49,829 $ 112 $ 49,941 (in millions) Total Shareholders' Equity Noncontrolling Interests Total Equity April 28, 2017 $ 50,294 $ 122 $ 50,416 Net income (loss) 1,644 (14 ) 1,630 Other comprehensive income 1,231 — 1,231 Dividends to shareholders (1,870 ) — (1,870 ) Issuance of shares under stock purchase and award plans 266 — 266 Repurchase of ordinary shares (1,897 ) — (1,897 ) Stock-based compensation 270 — 270 Cumulative effect of change in accounting principle 296 — 296 Changes to noncontrolling ownership interests — (2 ) (2 ) January 26, 2018 $ 50,234 $ 106 $ 50,340 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended |
Jan. 25, 2019 | |
Segment Reporting [Abstract] | |
Net Sales by 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 Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Cardiac and Vascular Group $ 2,786 $ 2,800 $ 8,455 $ 8,219 Minimally Invasive Therapies Group 2,124 2,041 6,223 6,479 Restorative Therapies Group 2,026 1,944 5,968 5,616 Diabetes Group 610 584 1,765 1,495 Total $ 7,546 $ 7,369 $ 22,411 $ 21,809 |
Income From Operations Before Income Taxes by Reportable Segment and Reconciliation to Consolidated | Segment EBITA Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Cardiac and Vascular Group $ 1,077 $ 1,082 $ 3,268 $ 3,197 Minimally Invasive Therapies Group 828 797 2,397 2,433 Restorative Therapies Group 825 756 2,396 2,186 Diabetes Group 189 187 538 389 Segment EBITA 2,919 2,822 8,599 8,205 Interest expense (243 ) (270 ) (726 ) (829 ) Interest income 55 98 202 290 Amortization of intangible assets (436 ) (461 ) (1,327 ) (1,375 ) Corporate (323 ) (524 ) (969 ) (1,140 ) Centralized distribution costs (383 ) (471 ) (1,312 ) (1,399 ) Restructuring and associated costs (66 ) (30 ) (256 ) (62 ) Acquisition-related items (17 ) (30 ) (57 ) (101 ) Certain litigation charges (63 ) (61 ) (166 ) (61 ) Gain/(loss) on minority investments 7 — 92 — IPR&D charges (11 ) (46 ) (26 ) (46 ) Exit of businesses (69 ) — (149 ) — Divestiture-related items — — — (115 ) Gain on sale of businesses — — — 697 Contribution to Medtronic Foundation — — — (80 ) Hurricane Maria — — — (34 ) Income before income taxes $ 1,370 $ 1,027 $ 3,905 $ 3,950 |
Net Sales to External Customers by Geography | 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. The following table presents net sales for the three and nine months ended January 25, 2019 and January 26, 2018 for the Company's country of domicile, countries with significant concentrations, and all other countries: Three months ended Nine months ended (in millions) January 25, 2019 January 26, 2018 January 25, 2019 January 26, 2018 Ireland $ 24 $ 20 $ 68 $ 62 United States 4,001 3,912 11,910 11,688 Rest of world 3,521 3,437 10,433 10,059 Total other countries, excluding Ireland 7,522 7,349 22,343 21,747 Total $ 7,546 $ 7,369 $ 22,411 $ 21,809 |
Guarantor Financial Informati_2
Guarantor Financial Information (Tables) | 9 Months Ended |
Jan. 25, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Consolidating Statement of Comprehensive Income | Consolidating Statement of Comprehensive Income Three Months Ended January 25, 2019 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Total Net sales $ — $ 281 $ — $ 7,546 $ (281 ) $ 7,546 Costs and expenses: Cost of products sold — 223 — 2,206 (164 ) 2,265 Research and development expense — 152 — 409 — 561 Selling, general, and administrative expense 2 362 — 2,232 — 2,596 Amortization of intangible assets — 2 — 434 — 436 Restructuring charges, net — 3 — 23 — 26 Certain litigation charges — 12 — 51 — 63 Other operating expense (income), net 15 (827 ) — 987 (118 ) 57 Operating profit (loss) (17 ) 354 — 1,204 1 1,542 Other non-operating (income) expense, net — (151 ) (200 ) (480 ) 760 (71 ) Interest expense 125 501 133 244 (760 ) 243 Equity in net (income) loss of subsidiaries (1,410 ) (678 ) (1,343 ) — 3,431 — Income (loss) before income taxes 1,268 682 1,410 1,440 (3,430 ) 1,370 Income tax (benefit) provision (1 ) 40 — 60 — 99 Net income (loss) 1,269 642 1,410 1,380 (3,430 ) 1,271 Net (income) loss attributable to noncontrolling interests — — — (2 ) — (2 ) Net income (loss) attributable to Medtronic 1,269 642 1,410 1,378 (3,430 ) 1,269 Other comprehensive income (loss), net of tax 154 54 154 132 (340 ) 154 Comprehensive income attributable to noncontrolling interests — — — (2 ) — (2 ) Total comprehensive income (loss) $ 1,423 $ 696 $ 1,564 $ 1,510 $ (3,770 ) $ 1,423 Consolidating Statement of Comprehensive Income Nine Months Ended January 25, 2019 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Total Net sales $ — $ 1,007 $ — $ 22,411 $ (1,007 ) $ 22,411 Costs and expenses: Cost of products sold — 776 — 6,538 (642 ) 6,672 Research and development expense — 496 — 1,240 — 1,736 Selling, general, and administrative expense 8 1,142 — 6,648 — 7,798 Amortization of intangible assets — 6 — 1,321 — 1,327 Restructuring charges, net — 14 — 98 — 112 Certain litigation charges — 90 — 76 — 166 Other operating expense (income), net 40 (1,759 ) — 2,336 (339 ) 278 Operating profit (loss) (48 ) 242 — 4,154 (26 ) 4,322 Other non-operating (income) expense, net — (445 ) (539 ) (1,411 ) 2,086 (309 ) Interest expense 333 1,444 349 686 (2,086 ) 726 Equity in net (income) loss of subsidiaries (3,835 ) (2,178 ) (3,644 ) — 9,657 — Income (loss) before income taxes 3,454 1,421 3,834 4,879 (9,683 ) 3,905 Income tax (benefit) provision (5 ) (79 ) — 521 — 437 Net income (loss) 3,459 1,500 3,834 4,358 (9,683 ) 3,468 Net (income) loss attributable to noncontrolling interests — — — (9 ) — (9 ) Net income (loss) attributable to Medtronic 3,459 1,500 3,834 4,349 (9,683 ) 3,459 Other comprehensive income (loss), net of tax (719 ) (747 ) (719 ) (779 ) 2,242 (722 ) Comprehensive income attributable to noncontrolling interests — — — (6 ) — (6 ) Total comprehensive income (loss) $ 2,740 $ 753 $ 3,115 $ 3,573 $ (7,441 ) $ 2,740 Consolidating Statement of Comprehensive Income Three Months Ended January 26, 2018 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Total Net sales $ — $ 275 $ — $ 7,369 $ (275 ) $ 7,369 Costs and expenses: Cost of products sold — 246 — 2,126 (178 ) 2,194 Research and development expense — 166 — 393 — 559 Selling, general, and administrative expense 4 364 — 2,155 — 2,523 Amortization of intangible assets — 2 — 459 — 461 Restructuring charges, net — — — 7 — 7 Certain litigation charges — 24 — 37 — 61 Other operating expense (income), net 10 (773 ) — 999 (108 ) 128 Operating profit (loss) (14 ) 246 — 1,193 11 1,436 Other non-operating (income) expense, net — 92 (133 ) (355 ) 535 139 Interest expense 63 464 73 205 (535 ) 270 Equity in net (income) loss of subsidiaries 1,314 1,350 1,374 — (4,038 ) — Income (loss) before income taxes (1,391 ) (1,660 ) (1,314 ) 1,343 4,049 1,027 Income tax (benefit) provision (2 ) 316 — 2,105 — 2,419 Net income (loss) (1,389 ) (1,976 ) (1,314 ) (762 ) 4,049 (1,392 ) Net loss attributable to noncontrolling interests — — — 3 — 3 Net income (loss) attributable to Medtronic (1,389 ) (1,976 ) (1,314 ) (759 ) 4,049 (1,389 ) Other comprehensive (loss) income, net of tax 678 599 678 664 (1,941 ) 678 Comprehensive loss attributable to noncontrolling interests — — — 3 — 3 Total comprehensive income (loss) $ (711 ) $ (1,377 ) $ (636 ) $ (95 ) $ 2,108 $ (711 ) Consolidating Statement of Comprehensive Income Nine Months Ended January 26, 2018 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Total Net sales $ — $ 879 $ — $ 21,807 $ (877 ) $ 21,809 Costs and expenses: Cost of products sold — 702 — 6,548 (581 ) 6,669 Research and development expense — 495 — 1,169 — 1,664 Selling, general, and administrative expense 9 1,089 — 6,544 — 7,642 Amortization of intangible assets — 6 — 1,369 — 1,375 Restructuring charges, net — 2 — 21 — 23 Certain litigation charges — 24 — 37 — 61 Gain on sale of businesses — — — (697 ) — (697 ) Other operating expense (income), net 35 (1,334 ) — 1,981 (322 ) 360 Operating profit (loss) (44 ) (105 ) — 4,835 26 4,712 Other non-operating (income) expense, net — (57 ) (344 ) (1,036 ) 1,370 (67 ) Interest expense 172 1,330 155 542 (1,370 ) 829 Equity in net (income) loss of subsidiaries (1,855 ) (387 ) (1,666 ) — 3,908 — Income (loss) before income taxes 1,639 (991 ) 1,855 5,329 (3,882 ) 3,950 Income tax (benefit) provision (5 ) (3 ) — 2,328 — 2,320 Net income (loss) 1,644 (988 ) 1,855 3,001 (3,882 ) 1,630 Net loss attributable to noncontrolling interests — — — 14 — 14 Net income (loss) attributable to Medtronic 1,644 (988 ) 1,855 3,015 (3,882 ) 1,644 Other comprehensive income (loss), net of tax 1,231 1,228 1,231 1,194 (3,653 ) 1,231 Comprehensive loss attributable to noncontrolling interests — — — 14 — 14 Total comprehensive income (loss) $ 2,875 $ 240 $ 3,086 $ 4,209 $ (7,535 ) $ 2,875 Consolidating Statement of Comprehensive Income Three Months Ended January 25, 2019 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Net sales $ — $ — $ — $ 7,546 $ — $ 7,546 Costs and expenses: Cost of products sold — — — 2,265 — 2,265 Research and development expense — — — 561 — 561 Selling, general, and administrative expense 2 — 1 2,593 — 2,596 Amortization of intangible assets — — — 436 — 436 Restructuring charges, net — — — 26 — 26 Certain litigation charges — — — 63 — 63 Other operating expense, net 15 — — 42 — 57 Operating profit (loss) (17 ) — (1 ) 1,560 — 1,542 Other non-operating (income) expense, net — (9 ) (207 ) (190 ) 335 (71 ) Interest expense 125 23 132 298 (335 ) 243 Equity in net (income) loss of subsidiaries (1,410 ) (655 ) (1,336 ) — 3,401 — Income (loss) before income taxes 1,268 641 1,410 1,452 (3,401 ) 1,370 Income tax (benefit) provision (1 ) — — 100 — 99 Net income (loss) 1,269 641 1,410 1,352 (3,401 ) 1,271 Net loss attributable to noncontrolling interests — — — (2 ) — (2 ) Net income (loss) attributable to Medtronic 1,269 641 1,410 1,350 (3,401 ) 1,269 Other comprehensive income (loss), net of tax 154 95 154 154 (403 ) 154 Comprehensive income attributable to noncontrolling interests — — — (2 ) — (2 ) Total comprehensive income (loss) $ 1,423 $ 736 $ 1,564 $ 1,504 $ (3,804 ) $ 1,423 Consolidating Statement of Comprehensive Income Nine Months Ended January 25, 2019 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Total Net sales $ — $ — $ — $ 22,411 $ — $ 22,411 Costs and expenses: Cost of products sold — — — 6,672 — 6,672 Research and development expense — — — 1,736 — 1,736 Selling, general, and administrative expense 8 1 2 7,787 — 7,798 Amortization of intangible assets — — — 1,327 — 1,327 Restructuring charges, net — — — 112 — 112 Certain litigation charges — — — 166 — 166 Other operating expense, net 40 — — 238 — 278 Operating profit (loss) (48 ) (1 ) (2 ) 4,373 — 4,322 Other non-operating (income) expense, net — (29 ) (559 ) (614 ) 893 (309 ) Interest expense 333 66 348 872 (893 ) 726 Equity in net (income) loss of subsidiaries (3,835 ) (2,271 ) (3,626 ) — 9,732 — Income (loss) before income taxes 3,454 2,233 3,835 4,115 (9,732 ) 3,905 Income tax (benefit) provision (5 ) — — 442 — 437 Net income (loss) 3,459 2,233 3,835 3,673 (9,732 ) 3,468 Net loss attributable to noncontrolling interests — — — (9 ) — (9 ) Net income (loss) attributable to Medtronic 3,459 2,233 3,835 3,664 (9,732 ) 3,459 Other comprehensive income (loss), net of tax (719 ) 69 (719 ) (722 ) 1,369 (722 ) Comprehensive income attributable to noncontrolling interests — — — (6 ) — (6 ) Total comprehensive income (loss) $ 2,740 $ 2,302 $ 3,116 $ 2,945 $ (8,363 ) $ 2,740 Consolidating Statement of Comprehensive Income Three Months Ended January 26, 2018 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Total Net sales $ — $ — $ — $ 7,369 $ — $ 7,369 Costs and expenses: Cost of products sold — — — 2,194 — 2,194 Research and development expense — — — 559 — 559 Selling, general, and administrative expense 4 — — 2,519 — 2,523 Amortization of intangible assets — — — 461 — 461 Restructuring charges, net — — — 7 — 7 Certain litigation charges — — — 61 — 61 Gain on sale of businesses — — — — — — Other operating expense, net 10 — — 118 — 128 Operating profit (loss) (14 ) — — 1,450 — 1,436 Other non-operating (income) expense, net — (13 ) (137 ) 83 206 139 Interest expense 63 19 73 321 (206 ) 270 Equity in net (income) loss of subsidiaries 1,314 (921 ) 1,378 — (1,771 ) — Income (loss) before income taxes (1,391 ) 915 (1,314 ) 1,046 1,771 1,027 Income tax (benefit) provision (2 ) — — 2,421 — 2,419 Net income (loss) (1,389 ) 915 (1,314 ) (1,375 ) 1,771 (1,392 ) Net loss attributable to noncontrolling interests — — — 3 — 3 Net income (loss) attributable to Medtronic (1,389 ) 915 (1,314 ) (1,372 ) 1,771 (1,389 ) Other comprehensive (loss) income, net of tax 678 52 678 678 (1,408 ) 678 Comprehensive loss attributable to — — — 3 — 3 Total comprehensive income (loss) $ (711 ) $ 967 $ (636 ) $ (694 ) $ 363 $ (711 ) Consolidating Statement of Comprehensive Income Nine Months Ended January 26, 2018 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Total Net sales $ — $ — $ — $ 21,809 $ — $ 21,809 Costs and expenses: Cost of products sold — — — 6,669 — 6,669 Research and development expense — — — 1,664 — 1,664 Selling, general, and administrative expense 9 — 1 7,632 — 7,642 Amortization of intangible assets — — — 1,375 — 1,375 Restructuring charges, net — — — 23 — 23 Certain litigation charges — — — 61 — 61 Gain on sale of businesses — — — (697 ) — (697 ) Other operating expense, net 35 1 — 324 — 360 Operating profit (loss) (44 ) (1 ) (1 ) 4,758 — 4,712 Other non-operating (income) expense, net — (45 ) (355 ) (169 ) 502 (67 ) Interest expense 172 63 156 940 (502 ) 829 Equity in net (income) loss of subsidiaries (1,855 ) (3,062 ) (1,657 ) — 6,574 — Income (loss) before income taxes 1,639 3,043 1,855 3,987 (6,574 ) 3,950 Income tax (benefit) provision (5 ) — — 2,325 — 2,320 Net income (loss) 1,644 3,043 1,855 1,662 (6,574 ) 1,630 Net loss attributable to noncontrolling interests — — — 14 — 14 Net income (loss) attributable to Medtronic 1,644 3,043 1,855 1,676 (6,574 ) 1,644 Other comprehensive income (loss), net of tax 1,231 (7 ) 1,231 1,231 (2,455 ) 1,231 Comprehensive loss attributable to — — — 14 — 14 Total comprehensive income (loss) $ 2,875 $ 3,036 $ 3,086 $ 2,907 $ (9,029 ) $ 2,875 |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet January 25, 2019 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Total ASSETS Current assets: Cash and cash equivalents $ — $ 16 $ 336 $ 3,351 $ — $ 3,703 Investments — — — 5,439 — 5,439 Accounts receivable, net — — — 5,854 — 5,854 Inventories, net — 176 — 3,870 (180 ) 3,866 Intercompany receivable 46 20,062 — 36,870 (56,978 ) — Other current assets 9 159 3 1,844 — 2,015 Total current assets 55 20,413 339 57,228 (57,158 ) 20,877 Property, plant, and equipment, net — 1,439 — 3,154 — 4,593 Goodwill — 1,883 — 38,120 — 40,003 Other intangible assets, net — — — 20,835 — 20,835 Tax assets — 447 — 1,049 — 1,496 Investment in subsidiaries 63,260 76,021 64,146 — (203,427 ) — Intercompany loans receivable 3,000 21 30,022 33,786 (66,829 ) — Other assets — 255 — 671 — 926 Total assets $ 66,315 $ 100,479 $ 94,507 $ 154,843 $ (327,414 ) $ 88,730 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ 1 $ 1,000 $ 355 $ — $ 1,356 Accounts payable — 459 — 1,247 — 1,706 Intercompany payable — 20,271 16,601 20,106 (56,978 ) — Accrued compensation 4 733 — 1,059 — 1,796 Accrued income taxes — — — 648 — 648 Other accrued expenses 20 557 32 2,738 — 3,347 Total current liabilities 24 22,021 17,633 26,153 (56,978 ) 8,853 Long-term debt — 20,620 845 2,209 — 23,674 Accrued compensation and retirement benefits — 836 — 477 — 1,313 Accrued income taxes 10 650 — 2,214 — 2,874 Intercompany loans payable 16,452 13,879 19,794 16,704 (66,829 ) — Deferred tax liabilities — — — 1,356 — 1,356 Other liabilities — 41 — 678 — 719 Total liabilities 16,486 58,047 38,272 49,791 (123,807 ) 38,789 Shareholders’ equity 49,829 42,432 56,235 104,940 (203,607 ) 49,829 Noncontrolling interests — — — 112 — 112 Total equity 49,829 42,432 56,235 105,052 (203,607 ) 49,941 Total liabilities and equity $ 66,315 $ 100,479 $ 94,507 $ 154,843 $ (327,414 ) $ 88,730 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 73,495 61,461 — (195,337 ) — Intercompany loans receivable 3,000 6,519 19,337 34,196 (63,052 ) — Other assets — 223 — 855 — 1,078 Total assets $ 63,424 $ 107,862 $ 80,799 $ 155,268 $ (315,960 ) $ 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 41,496 53,378 100,588 (195,462 ) 50,720 Noncontrolling interests — — — 102 — 102 Total equity 50,720 41,496 53,378 100,690 (195,462 ) 50,822 Total liabilities and equity $ 63,424 $ 107,862 $ 80,799 $ 155,268 $ (315,960 ) $ 91,393 Condensed Consolidating Balance Sheet January 25, 2019 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Total ASSETS Current assets: Cash and cash equivalents $ — $ — $ 336 $ 3,367 $ — $ 3,703 Investments — — — 5,439 — 5,439 Accounts receivable, net — — — 5,854 — 5,854 Inventories, net — — — 3,866 — 3,866 Intercompany receivable 46 — 1,362 16,616 (18,024 ) — Other current assets 9 — 3 2,003 — 2,015 Total current assets 55 — 1,701 37,145 (18,024 ) 20,877 Property, plant, and equipment, net — — — 4,593 — 4,593 Goodwill — — — 40,003 — 40,003 Other intangible assets, net — — — 20,835 — 20,835 Tax assets — — — 1,496 — 1,496 Investment in subsidiaries 63,260 33,203 62,790 — (159,253 ) — Intercompany loans receivable 3,000 1,061 30,022 19,894 (53,977 ) — Other assets — — — 926 — 926 Total assets $ 66,315 $ 34,264 $ 94,513 $ 124,892 $ (231,254 ) $ 88,730 LIABILITIES AND EQUITY Current liabilities: Current debt obligations $ — $ — $ 1,000 $ 356 $ — $ 1,356 Accounts payable — — — 1,706 — 1,706 Intercompany payable — 1,302 16,601 121 (18,024 ) — Accrued compensation 4 — — 1,792 — 1,796 Accrued income taxes — — — 648 — 648 Other accrued expenses 20 12 37 3,278 — 3,347 Total current liabilities 24 1,314 17,638 7,901 (18,024 ) 8,853 Long-term debt — 2,095 845 20,734 — 23,674 Accrued compensation and retirement benefits — — — 1,313 — 1,313 Accrued income taxes 10 — — 2,864 — 2,874 Intercompany loans payable 16,452 100 19,794 17,631 (53,977 ) — Deferred tax liabilities — — — 1,356 — 1,356 Other liabilities — — 1 718 — 719 Total liabilities 16,486 3,509 38,278 52,517 (72,001 ) 38,789 Shareholders’ equity 49,829 30,755 56,235 72,263 (159,253 ) 49,829 Noncontrolling interests — — — 112 — 112 Total equity 49,829 30,755 56,235 72,375 (159,253 ) 49,941 Total liabilities and equity $ 66,315 $ 34,264 $ 94,513 $ 124,892 $ (231,254 ) $ 88,730 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 31,239 60,122 — (151,742 ) — Intercompany loans receivable 3,000 1,291 19,337 19,436 (43,064 ) — Other assets — — — 1,078 — 1,078 Total assets $ 63,424 $ 32,530 $ 80,803 $ 116,382 $ (201,746 ) $ 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 29,015 53,378 69,349 (151,742 ) 50,720 Noncontrolling interests — — — 102 — 102 Total Equity 50,720 29,015 53,378 69,451 (151,742 ) 50,822 Total liabilities and equity $ 63,424 $ 32,530 $ 80,803 $ 116,382 $ (201,746 ) $ 91,393 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Nine Months Ended January 25, 2019 Medtronic Senior Notes and Medtronic Luxco Senior Notes (in millions) Medtronic plc Medtronic, Inc. Medtronic Luxco Subsidiary Non-guarantors Consolidating Total Operating Activities: Net cash provided by (used in) operating activities $ 100 $ (619 ) $ 200 $ 5,239 $ — $ 4,920 Investing Activities: Acquisitions, net of cash acquired — — — (1,615 ) — (1,615 ) Additions to property, plant, and equipment — (207 ) — (592 ) — (799 ) Purchases of investments — — — (1,987 ) — (1,987 ) Sales and maturities of investments — 76 — 4,083 — 4,159 Capital contribution paid (18 ) (47 ) — — 65 — Other investing activities — — — (3 ) — (3 ) Net cash provided by (used in) investing activities (18 ) (178 ) — (114 ) 65 (245 ) Financing Activities: Change in current debt obligations, net — — (696 ) — — (696 ) Issuance of long-term debt — — — 3 — 3 Payments on long-term debt — — — (29 ) — (29 ) Dividends to shareholders (2,022 ) — — — — (2,022 ) Issuance of ordinary shares 891 — — — — 891 Repurchase of ordinary shares (2,728 ) — — — — (2,728 ) Net intercompany loan borrowings (repayments) 3,777 793 814 (5,384 ) — — Capital contribution received — — — 65 (65 ) — Other financing activities — — 17 (7 ) — 10 Net cash provided by (used in) financing activities (82 ) 793 135 (5,352 ) (65 ) (4,571 ) Effect of exchange rate changes on cash and cash equivalents — — — (70 ) — (70 ) Net change in cash and cash equivalents — (4 ) 335 (297 ) — 34 Cash and cash equivalents at beginning of period — 20 1 3,648 — 3,669 Cash and cash equivalents at end of period $ — $ 16 $ 336 $ 3,351 $ — $ 3,703 Condensed Consolidating Statement of Cash Flows Nine Months Ended January 26, 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 (used in) operating activities $ 172 $ (958 ) $ 200 $ 4,232 $ — $ 3,646 Investing Activities: Acquisitions, net of cash acquired — — — (111 ) — (111 ) Proceeds from sale of businesses — — — 6,058 — 6,058 Additions to property, plant, and equipment — (234 ) — (542 ) — (776 ) Purchases of investments — — — (2,479 ) — (2,479 ) Sales and maturities of investments — — — 3,060 — 3,060 Capital contribution paid — (59 ) (4,200 ) — 4,259 — Other investing activities — — — (5 ) — (5 ) Net cash provided by (used in) investing activities — (293 ) (4,200 ) 5,981 4,259 5,747 Financing Activities: Change in current debt obligations, net — — (397 ) 6 — (391 ) Issuance of long-term debt — — — 21 — 21 Payments on long-term debt — (3,000 ) — (1,167 ) — (4,167 ) Dividends to shareholders (1,870 ) — — — — (1,870 ) Issuance of ordinary shares 333 — — — — 333 Repurchase of ordinary shares (1,964 ) — — — — (1,964 ) Net intercompany loan borrowings (repayments) 3,329 4,244 4,453 (12,026 ) — — Capital contribution received — — — 4,259 (4,259 ) — Other financing activities — — — (88 ) — (88 ) Net cash provided by (used in) financing activities (172 ) 1,244 4,056 (8,995 ) (4,259 ) (8,126 ) Effect of exchange rate changes on cash and cash equivalents — — — 124 — 124 Net change in cash and cash equivalents — (7 ) 56 1,342 — 1,391 Cash and cash equivalents at beginning of period — 45 5 4,917 — 4,967 Cash and cash equivalents at end of period $ — $ 38 $ 61 $ 6,259 $ — $ 6,358 Condensed Consolidating Statement of Cash Flows Nine Months Ended January 25, 2019 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by (used in) operating activities $ 100 $ (62 ) $ 219 $ 4,663 $ — $ 4,920 Investing Activities: Acquisitions, net of cash acquired — — — (1,615 ) — (1,615 ) Additions to property, plant, and equipment — — — (799 ) — (799 ) Purchases of investments — — — (1,987 ) — (1,987 ) Sales and maturities of investments — — — 4,159 — 4,159 Capital contribution paid (18 ) (187 ) — — 205 — Other investing activities — — — (3 ) — (3 ) Net cash provided by (used in) investing activities (18 ) (187 ) — (245 ) 205 (245 ) Financing Activities: Change in current debt obligations, net — — (696 ) — — (696 ) Issuance of long-term debt — — — 3 — 3 Payments on long-term debt — — — (29 ) — (29 ) Dividends to shareholders (2,022 ) — — — — (2,022 ) Issuance of ordinary shares 891 — — — — 891 Repurchase of ordinary shares (2,728 ) — — — — (2,728 ) Net intercompany loan borrowings (repayments) 3,777 249 795 (4,821 ) — — Capital contribution received — — — 205 (205 ) — Other financing activities — — 17 (7 ) — 10 Net cash provided by (used in) financing activities (82 ) 249 116 (4,649 ) (205 ) (4,571 ) Effect of exchange rate changes on cash and cash equivalents — — — (70 ) — (70 ) Net change in cash and cash equivalents — — 335 (301 ) — 34 Cash and cash equivalents at beginning of period — — 1 3,668 — 3,669 Cash and cash equivalents at end of period $ — $ — $ 336 $ 3,367 $ — $ 3,703 Condensed Consolidating Statement of Cash Flows Nine Months Ended January 26, 2018 CIFSA Senior Notes (in millions) Medtronic plc CIFSA CIFSA Subsidiary Guarantors Subsidiary Non-guarantors Consolidating Adjustments Total Operating Activities: Net cash provided by (used in) operating activities $ 172 $ 978 $ 210 $ 3,334 $ (1,048 ) $ 3,646 Investing Activities: Acquisitions, net of cash acquired — — — (111 ) — (111 ) Proceeds from sale of businesses — — — 6,058 — 6,058 Additions to property, plant, and equipment — — — (776 ) — (776 ) Purchases of investments — — — (2,479 ) — (2,479 ) Sales and maturities of investments — — — 3,060 — 3,060 Capital contributions paid — (531 ) (4,200 ) — 4,731 — Other investing activities — — — (5 ) — (5 ) Net cash provided by (used in) investing activities — (531 ) (4,200 ) 5,747 4,731 5,747 Financing Activities: Change in current debt obligations, net — — (397 ) 6 — (391 ) Issuance of long-term debt — — — 21 — 21 Payments on long-term debt — (1,150 ) — (3,017 ) — (4,167 ) Dividends to shareholders (1,870 ) — — — — (1,870 ) Issuance of ordinary shares 333 — — — — 333 Repurchase of ordinary shares (1,964 ) — — — — (1,964 ) Net intercompany loan borrowings (repayments) 3,329 670 4,443 (8,442 ) — — Intercompany dividend paid — — — (1,048 ) 1,048 — Capital contributions received — — — 4,731 (4,731 ) — Other financing activities — — — (88 ) — (88 ) Net cash provided by (used in) financing activities (172 ) (480 ) 4,046 (7,837 ) (3,683 ) (8,126 ) Effect of exchange rate changes on cash and cash equivalents — — — 124 — 124 Net change in cash and cash equivalents — (33 ) 56 1,368 — 1,391 Cash and cash equivalents at beginning of period — 33 5 4,929 — 4,967 Cash and cash equivalents at end of period $ — $ — $ 61 $ 6,297 $ — $ 6,358 |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jan. 26, 2018 | Jan. 26, 2018 | Apr. 28, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of change in accounting principle | $ 296 | ||
Accounting Standards Update 2017-07 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Non-service components of net periodic benefit costs | $ (10) | $ 4 | |
Accumulated Other Comprehensive Loss | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of change in accounting principle | 47 | ||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2016-01 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of change in accounting principle | 47 | ||
Retained Earnings | Accounting Standards Update 2016-01 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of change in accounting principle | $ (47) |
Revenue - Disaggregation of Ne
Revenue - Disaggregation of Net Sales by Segment and Division (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 7,546 | $ 7,369 | $ 22,411 | $ 21,809 |
Cardiac and Vascular Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,786 | 2,800 | 8,455 | 8,219 |
Cardiac and Vascular Group | Cardiac Rhythm & Heart Failure | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,397 | 1,457 | 4,295 | 4,314 |
Cardiac and Vascular Group | Coronary & Structural Heart | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 913 | 886 | 2,736 | 2,557 |
Cardiac and Vascular Group | Aortic, Peripheral & Venous | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 476 | 457 | 1,424 | 1,348 |
Minimally Invasive Therapies Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,124 | 2,041 | 6,223 | 6,479 |
Minimally Invasive Therapies Group | Surgical Innovations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,434 | 1,384 | 4,224 | 4,024 |
Minimally Invasive Therapies Group | Respiratory, Gastrointestinal, & Renal | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 690 | 657 | 1,999 | 2,455 |
Restorative Therapies Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,026 | 1,944 | 5,968 | 5,616 |
Restorative Therapies Group | Spine | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 655 | 661 | 1,963 | 1,969 |
Restorative Therapies Group | Brain Therapies | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 650 | 585 | 1,867 | 1,682 |
Restorative Therapies Group | Specialty Therapies | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 407 | 398 | 1,196 | 1,132 |
Restorative Therapies Group | Pain Therapies | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 314 | 300 | 942 | 833 |
Diabetes Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 610 | $ 584 | $ 1,765 | $ 1,495 |
Revenue - Disaggregation of Net
Revenue - Disaggregation of Net Sales by Market Geography for Each Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 7,546 | $ 7,369 | $ 22,411 | $ 21,809 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,001 | 3,912 | 11,910 | 11,688 |
Non-U.S. Developed Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,368 | 2,355 | 7,056 | 6,909 |
Emerging Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,177 | 1,102 | 3,445 | 3,212 |
Cardiac and Vascular Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,786 | 2,800 | 8,455 | 8,219 |
Cardiac and Vascular Group | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,369 | 1,395 | 4,240 | 4,151 |
Cardiac and Vascular Group | Non-U.S. Developed Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 924 | 934 | 2,766 | 2,716 |
Cardiac and Vascular Group | Emerging Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 493 | 471 | 1,449 | 1,352 |
Minimally Invasive Therapies Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,124 | 2,041 | 6,223 | 6,479 |
Minimally Invasive Therapies Group | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 930 | 862 | 2,659 | 2,902 |
Minimally Invasive Therapies Group | Non-U.S. Developed Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 796 | 807 | 2,396 | 2,455 |
Minimally Invasive Therapies Group | Emerging Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 398 | 372 | 1,168 | 1,122 |
Restorative Therapies Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,026 | 1,944 | 5,968 | 5,616 |
Restorative Therapies Group | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,354 | 1,300 | 4,005 | 3,779 |
Restorative Therapies Group | Non-U.S. Developed Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 435 | 429 | 1,275 | 1,217 |
Restorative Therapies Group | Emerging Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 237 | 215 | 688 | 620 |
Diabetes Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 610 | 584 | 1,765 | 1,495 |
Diabetes Group | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 348 | 355 | 1,006 | 856 |
Diabetes Group | Non-U.S. Developed Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 213 | 185 | 619 | 521 |
Diabetes Group | Emerging Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 49 | $ 44 | $ 140 | $ 118 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jan. 25, 2019 | Apr. 27, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 308 | $ 289 |
Revenue recognized that was previously included in deferred revenue | 170 | |
Estimated revenue expected to be recognized in future periods related to unsatisfied performance obligations | $ 700 | |
Period over which remaining performance obligations are expected to be recognized as revenue | 3 years | |
Other accrued expenses | ||
Disaggregation of Revenue [Line Items] | ||
Rebate obligations | $ 715 | 614 |
Deferred revenue | 209 | 196 |
Reduction of accounts receivable | ||
Disaggregation of Revenue [Line Items] | ||
Rebate obligations | 426 | 376 |
Other liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 99 | $ 93 |
Acquisitions - Fair Value of As
Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jan. 25, 2019 | Dec. 18, 2018 | Apr. 27, 2018 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Goodwill | $ 40,003 | $ 39,543 | |
Total | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Cash and cash equivalents | 112 | ||
Investments | 52 | ||
Accounts receivable | 12 | ||
Inventory | 35 | ||
Other current assets | 5 | ||
Property, plant, and equipment | 32 | ||
Goodwill | 1,360 | ||
Other intangible assets | 611 | ||
Tax assets | 6 | ||
Total assets acquired | 2,225 | ||
Current liabilities | 101 | ||
Accrued income taxes | 8 | ||
Deferred tax liabilities | 65 | ||
Total liabilities assumed | 174 | ||
Net assets acquired | 2,051 | ||
Mazor Robotics | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Cash and cash equivalents | $ 109 | ||
Investments | 52 | ||
Accounts receivable | 10 | ||
Inventory | 8 | ||
Other current assets | 2 | ||
Property, plant, and equipment | 3 | ||
Goodwill | 1,214 | ||
Other intangible assets | 400 | ||
Tax assets | 0 | ||
Total assets acquired | 1,798 | ||
Current liabilities | 56 | ||
Accrued income taxes | 3 | ||
Deferred tax liabilities | 65 | ||
Total liabilities assumed | 124 | ||
Net assets acquired | $ 1,674 | ||
All Other | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Cash and cash equivalents | 3 | ||
Investments | 0 | ||
Accounts receivable | 2 | ||
Inventory | 27 | ||
Other current assets | 3 | ||
Property, plant, and equipment | 29 | ||
Goodwill | 146 | ||
Other intangible assets | 211 | ||
Tax assets | 6 | ||
Total assets acquired | 427 | ||
Current liabilities | 45 | ||
Accrued income taxes | 5 | ||
Deferred tax liabilities | 0 | ||
Total liabilities assumed | 50 | ||
Net assets acquired | $ 377 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) | Dec. 18, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | Oct. 26, 2018 | Apr. 27, 2018 | Oct. 27, 2017 | Apr. 28, 2017 |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 40,003,000,000 | $ 40,003,000,000 | $ 39,543,000,000 | ||||||
Approximate payments expected to acquire business, net of existing stake and cash acquired | 1,615,000,000 | $ 111,000,000 | |||||||
Fair value of contingent consideration | 148,000,000 | $ 171,000,000 | 148,000,000 | 171,000,000 | $ 203,000,000 | 173,000,000 | $ 190,000,000 | $ 246,000,000 | |
Other accrued expenses | |||||||||
Business Acquisition [Line Items] | |||||||||
Fair value of contingent consideration | 99,000,000 | 99,000,000 | 108,000,000 | ||||||
Other liabilities | |||||||||
Business Acquisition [Line Items] | |||||||||
Fair value of contingent consideration | 49,000,000 | 49,000,000 | $ 65,000,000 | ||||||
IPR&D | |||||||||
Business Acquisition [Line Items] | |||||||||
In-process research and development acquired in connection with asset acquisition | 0 | $ 0 | 15,000,000 | $ 0 | |||||
Mazor Robotics | |||||||||
Business Acquisition [Line Items] | |||||||||
Total consideration for the transaction, net of cash acquired | $ 1,600,000,000 | ||||||||
Cash consideration | 1,300,000,000 | ||||||||
Previously-held equity investment | 246,000,000 | ||||||||
Intangible assets acquired | 400,000,000 | ||||||||
Goodwill | 1,214,000,000 | ||||||||
Costs incurred in connection with acquisition | $ 51,000,000 | $ 51,000,000 | |||||||
Mazor Robotics | Technology-Based Intangible Assets | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets acquired | $ 384,000,000 | ||||||||
Estimated useful life | 10 years | ||||||||
Mazor Robotics | Tradenames | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets acquired | $ 16,000,000 | ||||||||
Estimated useful life | 10 years |
Acquisitions - Reconciliation o
Acquisitions - Reconciliation of Beginning and Ending Balances of Contingent Consideration (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions [Roll Forward] | ||||
Beginning balance | $ 203 | $ 190 | $ 173 | $ 246 |
Purchase price contingent consideration | 5 | 13 | 51 | 28 |
Payments | (1) | (20) | (8) | (66) |
Change in fair value | (59) | (12) | (68) | (37) |
Ending balance | $ 148 | $ 171 | $ 148 | $ 171 |
Acquisitions - Fair Value Measu
Acquisitions - Fair Value Measurement, Contingent Consideration, Significant Unobservable Inputs (Details) $ in Millions | Jan. 25, 2019USD ($) | Oct. 26, 2018USD ($) | Apr. 27, 2018USD ($) | Jan. 26, 2018USD ($) | Oct. 27, 2017USD ($) | Apr. 28, 2017USD ($) |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||||
Contingent consideration, fair value | $ 148 | $ 203 | $ 173 | $ 171 | $ 190 | $ 246 |
Revenue and other performance-based payments | Recurring | Level 3 | ||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||||
Contingent consideration, fair value | $ 97 | |||||
Revenue and other performance-based payments | Recurring | Level 3 | Probability of payment | ||||||
Fair Value Inputs | ||||||
Contingent consideration, significant unobservable inputs | 1 | |||||
Revenue and other performance-based payments | Minimum | Recurring | Level 3 | Discount rate | ||||||
Fair Value Inputs | ||||||
Contingent consideration, significant unobservable inputs | 0.115 | |||||
Revenue and other performance-based payments | Maximum | Recurring | Level 3 | Discount rate | ||||||
Fair Value Inputs | ||||||
Contingent consideration, significant unobservable inputs | 0.325 | |||||
Product development and other milestone-based payments | Recurring | Level 3 | ||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||||
Contingent consideration, fair value | $ 51 | |||||
Product development and other milestone-based payments | Recurring | Level 3 | Discount rate | ||||||
Fair Value Inputs | ||||||
Contingent consideration, significant unobservable inputs | 0.055 | |||||
Product development and other milestone-based payments | Minimum | Recurring | Level 3 | Probability of payment | ||||||
Fair Value Inputs | ||||||
Contingent consideration, significant unobservable inputs | 0.75 | |||||
Product development and other milestone-based payments | Maximum | Recurring | Level 3 | Probability of payment | ||||||
Fair Value Inputs | ||||||
Contingent consideration, significant unobservable inputs | 1 |
Divestitures (Details)
Divestitures (Details) | Jul. 29, 2017USD ($)site | Jan. 25, 2019USD ($) | Jan. 26, 2018USD ($) | Jan. 25, 2019USD ($) | Jan. 26, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of businesses | $ 0 | $ 6,058,000,000 | |||
Gain on sale of businesses | $ 0 | $ 0 | 0 | 697,000,000 | |
Disposal group, disposed of by sale, not discontinued operations | 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 | ||||
Divestiture-related expenses | $ 0 | $ 0 | $ 0 | 115,000,000 | |
Accelerated stock compensation expense | $ 16,000,000 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, net of accrual adjustments | $ 66,000,000 | $ 30,000,000 | $ 256,000,000 | $ 62,000,000 |
Accrual (reversal of accrual) for restructuring reserves | (3,000,000) | (2,000,000) | (8,000,000) | (15,000,000) |
Enterprise Excellence | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 69,000,000 | 32,000,000 | 264,000,000 | 32,000,000 |
Enterprise Excellence | Cost of products sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 21,000,000 | 13,000,000 | 58,000,000 | 13,000,000 |
Enterprise Excellence | Selling, general, and administrative expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 19,000,000 | 10,000,000 | 73,000,000 | 10,000,000 |
Cost Synergies | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accrual (reversal of accrual) for restructuring reserves | (1,000,000) | (2,000,000) | (8,000,000) | (15,000,000) |
Charges | $ 0 | 45,000,000 | ||
Cost Synergies | Cost of products sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 12,000,000 | |||
Cost Synergies | Selling, general, and administrative expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 4,000,000 | |||
Minimum | Pre-tax exit and disposal costs and other | Enterprise Excellence | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected cost | 1,600,000,000 | 1,600,000,000 | ||
Maximum | Pre-tax exit and disposal costs and other | Enterprise Excellence | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected cost | $ 1,800,000,000 | $ 1,800,000,000 |
Restructuring - Termination Lia
Restructuring - Termination Liability and Restructuring Reserve (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Accrual adjustments | $ (3,000,000) | $ (2,000,000) | $ (8,000,000) | $ (15,000,000) |
Enterprise Excellence | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 29,000,000 | |||
Charges | 69,000,000 | 32,000,000 | 264,000,000 | 32,000,000 |
Cash payments | (230,000,000) | |||
Settled non-cash | (13,000,000) | |||
Ending balance | 50,000,000 | 50,000,000 | ||
Enterprise Excellence | Employee Termination Benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 27,000,000 | |||
Charges | 107,000,000 | |||
Cash payments | (97,000,000) | |||
Settled non-cash | 0 | |||
Ending balance | 37,000,000 | 37,000,000 | ||
Enterprise Excellence | Associated Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 2,000,000 | |||
Charges | 131,000,000 | |||
Cash payments | (128,000,000) | |||
Settled non-cash | 0 | |||
Ending balance | 5,000,000 | 5,000,000 | ||
Enterprise Excellence | Asset Write-Downs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | |||
Charges | 13,000,000 | |||
Cash payments | 0 | |||
Settled non-cash | (13,000,000) | |||
Ending balance | 0 | 0 | ||
Enterprise Excellence | Other Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | |||
Charges | 13,000,000 | |||
Cash payments | (5,000,000) | |||
Settled non-cash | 0 | |||
Ending balance | 8,000,000 | 8,000,000 | ||
Cost Synergies | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 138,000,000 | |||
Charges | 0 | 45,000,000 | ||
Cash payments | (52,000,000) | |||
Accrual adjustments | (1,000,000) | $ (2,000,000) | (8,000,000) | $ (15,000,000) |
Ending balance | 78,000,000 | 78,000,000 | ||
Cost Synergies | Employee Termination Benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 116,000,000 | |||
Cash payments | (34,000,000) | |||
Accrual adjustments | (8,000,000) | |||
Ending balance | 74,000,000 | 74,000,000 | ||
Cost Synergies | Other Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 22,000,000 | |||
Cash payments | (18,000,000) | |||
Accrual adjustments | 0 | |||
Ending balance | $ 4,000,000 | $ 4,000,000 |
Financial Instruments - Investm
Financial Instruments - Investments by Category and Related Balance Sheet Classification (Details) - USD ($) $ in Millions | Jan. 25, 2019 | Apr. 27, 2018 |
Schedule of Investments [Line Items] | ||
Cost | $ 5,603 | $ 6,963 |
Unrealized Gains | 4 | 22 |
Unrealized Losses | (124) | (165) |
Fair Value | 5,483 | 6,820 |
Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 5,439 | 6,776 |
Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 44 | 44 |
Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 5,033 | 6,184 |
Unrealized Gains | 4 | 22 |
Unrealized Losses | (106) | (136) |
Fair Value | 4,931 | 6,070 |
Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 4,931 | 6,070 |
Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Corporate debt securities | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 3,259 | 4,179 |
Unrealized Gains | 3 | 20 |
Unrealized Losses | (60) | (75) |
Fair Value | 3,202 | 4,124 |
Corporate debt securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 3,202 | 4,124 |
Corporate debt securities | Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
U.S. government and agency securities | Level 1 | ||
Schedule of Investments [Line Items] | ||
Cost | 523 | 732 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (15) | (26) |
Fair Value | 508 | 706 |
U.S. government and agency securities | Level 1 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 508 | 706 |
U.S. government and agency securities | Level 1 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
U.S. government and agency securities | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 841 | 848 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (14) | (24) |
Fair Value | 827 | 824 |
U.S. government and agency securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 827 | 824 |
U.S. government and agency securities | Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Mortgage-backed securities | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 464 | 725 |
Unrealized Gains | 1 | 2 |
Unrealized Losses | (28) | (34) |
Fair Value | 437 | 693 |
Mortgage-backed securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 437 | 693 |
Mortgage-backed securities | Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Non-U.S. government and agency securities | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 5 | 74 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (1) |
Fair Value | 5 | 73 |
Non-U.S. government and agency securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 5 | 73 |
Non-U.S. government and agency securities | Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Other asset-backed securities | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 464 | 358 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (4) | (2) |
Fair Value | 460 | 356 |
Other asset-backed securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 460 | 356 |
Other asset-backed securities | Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Auction rate securities | Level 3 | ||
Schedule of Investments [Line Items] | ||
Cost | 47 | 47 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3) | (3) |
Fair Value | 44 | 44 |
Auction rate securities | Level 3 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Auction rate securities | Level 3 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | $ 44 | $ 44 |
Financial Instruments - Availab
Financial Instruments - Available-For-Sale Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions | Jan. 25, 2019 | Apr. 27, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | $ 1,985 | $ 4,094 |
Less than 12 months, Unrealized Losses | (25) | (107) |
More than 12 months, Fair Value | 2,392 | 891 |
More than 12 months, Unrealized Losses | (99) | (58) |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 42 | 762 |
Less than 12 months, Unrealized Losses | 0 | (33) |
More than 12 months, Fair Value | 812 | 374 |
More than 12 months, Unrealized Losses | (29) | (17) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 1,543 | 2,620 |
Less than 12 months, Unrealized Losses | (21) | (58) |
More than 12 months, Fair Value | 1,168 | 272 |
More than 12 months, Unrealized Losses | (39) | (17) |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 87 | 442 |
Less than 12 months, Unrealized Losses | (1) | (15) |
More than 12 months, Fair Value | 287 | 102 |
More than 12 months, Unrealized Losses | (27) | (19) |
Non-U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 32 | |
Less than 12 months, Unrealized Losses | 0 | |
More than 12 months, Fair Value | 36 | |
More than 12 months, Unrealized Losses | (1) | |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 313 | 238 |
Less than 12 months, Unrealized Losses | (3) | (1) |
More than 12 months, Fair Value | 81 | 63 |
More than 12 months, Unrealized Losses | (1) | (1) |
Auction rate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 0 | 0 |
Less than 12 months, Unrealized Losses | 0 | 0 |
More than 12 months, Fair Value | 44 | 44 |
More than 12 months, Unrealized Losses | $ (3) | $ (3) |
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) - Recurring - Level 3 - Auction rate securities | Jan. 25, 2019 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Years to principal recovery | 3 years |
Illiquidity premium | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Measurement input | 0.06 |
Minimum | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Years to principal recovery | 2 years |
Maximum | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Years to principal recovery | 12 years |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | Apr. 28, 2018 | Apr. 27, 2018 | |
Investments [Abstract] | ||||||
Credit loss portion of other-than-temporary impairments | $ 0 | $ 0 | $ 0 | |||
Reductions for available-for-sale securities sold | 0 | $ 0 | 0 | $ 0 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of change in accounting principle | $ 296 | |||||
Impairment charges | 0 | 227 | ||||
Carrying value of investments prior to recognizing impairment charges | 317 | 317 | ||||
Equity Investments | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net gains (losses) recognized | 7 | 101 | ||||
Net realized gains (losses) on equity and other investments sold during the period | 1 | 71 | ||||
Net unrealized gains (losses) on equity and other investments still held | 6 | 30 | ||||
Impairment charges | $ 0 | 227 | $ 12 | 228 | ||
Accumulated Other Comprehensive Loss | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of change in accounting principle | 47 | |||||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2016-01 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of change in accounting principle | 47 | |||||
Retained Earnings | Accounting Standards Update 2016-01 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of change in accounting principle | $ (47) | |||||
Other Non-Operating (Income) Expense, Net | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Impairment charges | $ 227 | $ 227 |
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 | 3 Months Ended | 9 Months Ended | |||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | Apr. 27, 2018 | |
Activities Related to Investment Portfolio | |||||
Proceeds from sales | $ 1,301 | $ 667 | $ 3,217 | $ 2,618 | |
Gross realized gains | 9 | 3 | 17 | 22 | |
Gross realized losses | (36) | $ (2) | (55) | $ (16) | |
AFS Debt Maturities | |||||
Due in one year or less | 1,139 | 1,139 | |||
Due after one year through five years | 1,867 | 1,867 | |||
Due after five years through ten years | 2,358 | 2,358 | |||
Due after ten years | 119 | 119 | |||
Fair Value | $ 5,483 | $ 5,483 | $ 6,820 |
Financial Instruments - Summary
Financial Instruments - Summary of Equity and Other Investments (Details) - Other Assets $ in Millions | Jan. 25, 2019USD ($) |
Investment [Line Items] | |
Investments with readily determinable fair values (marketable equity securities) | $ 20 |
Investments without readily determinable fair values | 240 |
Equity method and other investments | 70 |
Total equity and other investments | $ 330 |
Financial Instruments - Invest
Financial Instruments - Investments by Category and Related Balance Sheet Classification, Equity and Other Investments (Details) $ in Millions | Apr. 27, 2018USD ($) |
Equity Investments | |
Available-for-sale securities: | |
Cost | $ 1,001 |
Unrealized Gains | 99 |
Unrealized Losses | (156) |
Fair Value | 944 |
Total equity and other investments | |
Cost | 1,354 |
Unrealized Gains | 99 |
Unrealized Losses | (156) |
Fair Value | 944 |
Equity Investments | Level 3 | |
Cost method, equity method, and other investments: | |
Cost | 353 |
Marketable equity securities | Level 1 | |
Available-for-sale securities: | |
Cost | 63 |
Unrealized Gains | 99 |
Unrealized Losses | 0 |
Fair Value | 162 |
Debt funds | Level 2 | |
Available-for-sale securities: | |
Cost | 739 |
Unrealized Gains | 0 |
Unrealized Losses | (154) |
Fair Value | 585 |
Debt funds | Investments measured at net asset value | |
Available-for-sale securities: | |
Cost | 199 |
Unrealized Gains | 0 |
Unrealized Losses | (2) |
Fair Value | 197 |
Investments | Equity Investments | |
Available-for-sale securities: | |
Fair Value | 782 |
Total equity and other investments | |
Fair Value | 782 |
Investments | Equity Investments | Level 3 | |
Cost method, equity method, and other investments: | |
Cost | 0 |
Investments | Marketable equity securities | Level 1 | |
Available-for-sale securities: | |
Fair Value | 0 |
Investments | Debt funds | Level 2 | |
Available-for-sale securities: | |
Fair Value | 585 |
Investments | Debt funds | Investments measured at net asset value | |
Available-for-sale securities: | |
Fair Value | 197 |
Other Assets | Equity Investments | |
Available-for-sale securities: | |
Fair Value | 162 |
Total equity and other investments | |
Fair Value | 515 |
Other Assets | Equity Investments | Level 3 | |
Cost method, equity method, and other investments: | |
Cost | 353 |
Other Assets | Marketable equity securities | Level 1 | |
Available-for-sale securities: | |
Fair Value | 162 |
Other Assets | Debt funds | Level 2 | |
Available-for-sale securities: | |
Fair Value | 0 |
Other Assets | Debt funds | Investments measured at net asset value | |
Available-for-sale securities: | |
Fair Value | $ 0 |
Financial Instruments - Activ_2
Financial Instruments - Activity Related to the Company's Investment Portfolio, Equity and Other Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Investment [Line Items] | ||||
Proceeds from sales | $ 4,159 | $ 3,060 | ||
Impairment losses recognized | 0 | (227) | ||
Equity Investments | ||||
Investment [Line Items] | ||||
Proceeds from sales | $ 33 | $ 39 | 941 | 442 |
Gross gains | 8 | 8 | 131 | 15 |
Gross losses | (1) | 0 | (30) | (1) |
Impairment losses recognized | $ 0 | $ (227) | $ (12) | $ (228) |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) | Dec. 12, 2018USD ($)extension | Jan. 25, 2019USD ($) | Feb. 20, 2019USD ($) | Apr. 27, 2018USD ($) |
Financial Instruments Not Measured at Fair Value | ||||
Long-term debt, including the current portion, fair value | $ 25,200,000,000 | $ 25,100,000,000 | ||
Long-term debt, including the current portion, principal value | 24,500,000,000 | 24,500,000,000 | ||
Senior notes | Subsequent Event | ||||
Senior Notes | ||||
Cash tender offer, maximum amount of outstanding debt | $ 5,000,000,000 | |||
Commercial Paper Program | Commercial Paper | ||||
Commercial Paper [Abstract] | ||||
Commercial paper, maximum borrowing amount | 3,500,000,000 | |||
Commercial paper, amount outstanding | $ 0 | 698,000,000 | ||
Weighted average original maturity | 28 days | |||
Weighted average interest rate | 2.10% | |||
Credit Facility | Line of Credit | ||||
Line of Credit Facility | ||||
Line of credit, maximum capacity | $ 3,500,000,000 | |||
Term of debt instrument | 5 years | |||
Line of credit, number of extension options | extension | 2 | |||
Line of credit, term of extension options | 1 year | |||
Line of credit, amount outstanding | $ 0 | $ 0 |
Financing Arrangements - Long-T
Financing Arrangements - Long-Term Debt (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jan. 25, 2019 | Apr. 27, 2018 | |
Debt Instrument [Line Items] | ||
Current debt obligations | $ 1,356 | $ 2,058 |
Long-term debt | ||
Debt premium, net | 108 | 120 |
Deferred financing costs | (95) | (107) |
Long-term debt | $ 23,674 | 23,699 |
Senior notes | Floating rate five-year 2015 senior notes | ||
Long-term debt | ||
Term of debt instrument | 5 years | |
Long-term debt, gross | $ 500 | 500 |
Senior notes | 2.500 percent five-year 2015 senior notes | ||
Long-term debt | ||
Stated interest rate | 2.50% | |
Term of debt instrument | 5 years | |
Long-term debt, gross | $ 2,500 | 2,500 |
Senior notes | 4.200 percent ten-year 2010 CIFSA senior notes | ||
Long-term debt | ||
Stated interest rate | 4.20% | |
Term of debt instrument | 10 years | |
Long-term debt, gross | $ 600 | 600 |
Senior notes | 4.125 percent ten-year 2011 senior notes | ||
Long-term debt | ||
Stated interest rate | 4.125% | |
Term of debt instrument | 10 years | |
Long-term debt, gross | $ 500 | 500 |
Senior notes | 3.150 percent seven-year 2015 senior notes | ||
Long-term debt | ||
Stated interest rate | 3.15% | |
Term of debt instrument | 7 years | |
Long-term debt, gross | $ 2,500 | 2,500 |
Senior notes | 3.125 percent ten-year 2012 senior notes | ||
Long-term debt | ||
Stated interest rate | 3.125% | |
Term of debt instrument | 10 years | |
Long-term debt, gross | $ 675 | 675 |
Senior notes | 3.200 percent ten-year 2012 CIFSA senior notes | ||
Long-term debt | ||
Stated interest rate | 3.20% | |
Term of debt instrument | 10 years | |
Long-term debt, gross | $ 650 | 650 |
Senior notes | 2.750 percent ten-year 2013 senior notes | ||
Long-term debt | ||
Stated interest rate | 2.75% | |
Term of debt instrument | 10 years | |
Long-term debt, gross | $ 530 | 530 |
Senior notes | 2.950 percent ten-year 2013 CIFSA senior notes | ||
Long-term debt | ||
Stated interest rate | 2.95% | |
Term of debt instrument | 10 years | |
Long-term debt, gross | $ 310 | 310 |
Senior notes | 3.625 percent ten-year 2014 senior notes | ||
Long-term debt | ||
Stated interest rate | 3.625% | |
Term of debt instrument | 10 years | |
Long-term debt, gross | $ 850 | 850 |
Senior notes | 3.500 percent ten-year 2015 senior notes | ||
Long-term debt | ||
Stated interest rate | 3.50% | |
Term of debt instrument | 10 years | |
Long-term debt, gross | $ 4,000 | 4,000 |
Senior notes | 3.350 percent ten-year 2017 senior notes | ||
Long-term debt | ||
Stated interest rate | 3.35% | |
Term of debt instrument | 10 years | |
Long-term debt, gross | $ 850 | 850 |
Senior notes | 4.375 percent twenty-year 2015 senior notes | ||
Long-term debt | ||
Stated interest rate | 4.375% | |
Term of debt instrument | 20 years | |
Long-term debt, gross | $ 2,382 | 2,382 |
Senior notes | 6.550 percent thirty-year 2008 CIFSA senior notes | ||
Long-term debt | ||
Stated interest rate | 6.55% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 374 | 374 |
Senior notes | 6.500 percent thirty-year 2009 senior notes | ||
Long-term debt | ||
Stated interest rate | 6.50% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 300 | 300 |
Senior notes | 5.550 percent thirty-year 2010 senior notes | ||
Long-term debt | ||
Stated interest rate | 5.55% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 500 | 500 |
Senior notes | 4.500 percent thirty-year 2012 senior notes | ||
Long-term debt | ||
Stated interest rate | 4.50% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 400 | 400 |
Senior notes | 4.000 percent thirty-year 2013 senior notes | ||
Long-term debt | ||
Stated interest rate | 4.00% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 325 | 325 |
Senior notes | 4.625 percent thirty-year 2014 senior notes | ||
Long-term debt | ||
Stated interest rate | 4.625% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 650 | 650 |
Senior notes | 4.625 percent thirty-year 2015 senior notes | ||
Long-term debt | ||
Stated interest rate | 4.625% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 4,150 | 4,150 |
Bank borrowings | ||
Long-term debt | ||
Long-term debt, gross | 94 | 125 |
Capital lease obligations | ||
Long-term debt | ||
Capital lease obligations | 21 | 21 |
Interest rate swaps | ||
Long-term debt | ||
Interest rate swaps | $ 0 | $ (6) |
Derivatives and Currency Exch_3
Derivatives and Currency Exchange Risk Management - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | Apr. 27, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gains (losses) relating to ineffectiveness of cash flow hedges | $ 0 | $ 0 | $ 0 | $ 0 | |
After-tax net unrealized gains (losses) associated with cash flow hedging instruments recorded in AOCI | 110,000,000 | 110,000,000 | $ (207,000,000) | ||
Cash flow hedge unrealized gains to be reclassified over the next 12 months | 114,000,000 | ||||
Debt, face amount | 24,500,000,000 | 24,500,000,000 | 24,500,000,000 | ||
Gains (losses) relating to ineffectiveness of interest rate fair value hedges | 0 | 0 | 0 | 0 | |
Gains (losses) on firm commitments that no longer qualify as fair value hedges | $ 0 | $ 0 | $ 0 | $ 0 | |
4.125 percent ten-year 2011 senior notes | Senior notes | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Stated interest rate | 4.125% | 4.125% | |||
3.125 percent ten-year 2012 senior notes | Senior notes | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Stated interest rate | 3.125% | 3.125% | |||
Currency exchange rate contracts | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | $ 12,200,000,000 | $ 12,200,000,000 | 11,500,000,000 | ||
Currency exchange rate contracts | Derivatives not designated as hedging instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | 5,100,000,000 | 5,100,000,000 | 5,200,000,000 | ||
Currency exchange rate contracts | Derivatives designated as hedging instruments | Cash flow hedging | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | 7,000,000,000 | $ 7,000,000,000 | 6,300,000,000 | ||
Maximum remaining maturity of foreign currency derivatives | 3 years | ||||
Total return swap | Derivatives not designated as hedging instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | 174,000,000 | $ 174,000,000 | 210,000,000 | ||
Interest rate swaps | Derivatives designated as hedging instruments | Fair value hedging | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 | ||
Market value of outstanding interest rate swap agreements - net unrealized loss | 0 | 0 | 6,000,000 | ||
Interest rate swaps | Derivatives designated as hedging instruments | Fair value hedging | 4.125 percent ten-year 2011 senior notes | Senior notes | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Debt, face amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||
Stated interest rate | 4.125% | 4.125% | 4.125% | ||
Interest rate swaps | Derivatives designated as hedging instruments | Fair value hedging | 3.125 percent ten-year 2012 senior notes | Senior notes | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Debt, face amount | $ 675,000,000 | $ 675,000,000 | $ 675,000,000 | ||
Stated interest rate | 3.125% | 3.125% | 3.125% |
Derivatives and Currency Exch_4
Derivatives and Currency Exchange Risk Management - Gains (Losses) on Derivatives and Amounts Reclassified into Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) in consolidated statements of income related to derivative instruments, not designated as hedging instruments | $ (30) | $ (158) | $ 171 | $ (280) |
Currency exchange rate contracts | Cash flow hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in AOCI | 25 | (287) | 469 | (507) |
Other operating expense, net | Currency exchange rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) in consolidated statements of income related to derivative instruments, not designated as hedging instruments | (30) | (181) | 171 | (318) |
Other operating expense, net | Currency exchange rate contracts | Cash flow hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income | 48 | (11) | 56 | 1 |
Other operating expense, net | Total return swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) in consolidated statements of income related to derivative instruments, not designated as hedging instruments | $ 0 | $ 23 | $ 0 | $ 38 |
Derivatives and Currency Exch_5
Derivatives and Currency Exchange Risk Management - Classification and Fair Value Amounts of Derivative Instruments in Balance Sheets (Details) - USD ($) $ in Millions | Jan. 25, 2019 | Apr. 27, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | $ 269 | $ 118 |
Derivative Liabilities, Fair Value | 54 | 258 |
Currency exchange rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 253 | 79 |
Derivative Liabilities, Fair Value | 39 | 238 |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 7 | 8 |
Derivative Liabilities, Fair Value | 7 | 14 |
Total return swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 4 | |
Derivative Liabilities, Fair Value | 4 | |
Cross currency interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 9 | 6 |
Derivative Liabilities, Fair Value | 4 | 6 |
Stock warrants | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 21 | |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 244 | 56 |
Derivative Liabilities, Fair Value | 21 | 227 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 169 | 37 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 68 | 11 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 7 | 162 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 7 | 51 |
Derivatives designated as hedging instruments | Interest rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 7 | 8 |
Derivatives designated as hedging instruments | Interest rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 7 | 14 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 25 | 62 |
Derivative Liabilities, Fair Value | 33 | 31 |
Derivatives not designated as hedging instruments | Currency exchange rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 16 | 31 |
Derivatives not designated as hedging instruments | Currency exchange rate contracts | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 25 | 25 |
Derivatives not designated as hedging instruments | Total return swap | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 0 | 4 |
Derivatives not designated as hedging instruments | Total return swap | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 4 | 0 |
Derivatives not designated as hedging instruments | Cross currency interest rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 8 | |
Derivatives not designated as hedging instruments | Cross currency interest rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 1 | 6 |
Derivatives not designated as hedging instruments | Cross currency interest rate contracts | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 3 | |
Derivatives not designated as hedging instruments | Cross currency interest rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | $ 1 | 6 |
Derivatives not designated as hedging instruments | Stock warrants | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 21 | |
Derivatives not designated as hedging instruments | Stock warrants | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | $ 0 |
Derivatives and Currency Exch_6
Derivatives and Currency Exchange Risk Management - Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Jan. 25, 2019 | Apr. 27, 2018 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 253 | $ 79 |
Derivative liabilities | 39 | 238 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 16 | 39 |
Derivative liabilities | $ 15 | $ 20 |
Derivatives and Currency Exch_7
Derivatives and Currency Exchange Risk Management - Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 25, 2019 | Apr. 27, 2018 |
Derivative assets: | ||
Gross Amount of Recorded Assets (Liabilities) | $ 269 | $ 118 |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | (38) | (71) |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | (17) | 0 |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral Posted (Received) | 0 | 0 |
Net Amount | 214 | 47 |
Derivative liabilities: | ||
Gross Amount of Recorded Assets (Liabilities) | (54) | (258) |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 38 | 71 |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | 0 |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral Posted (Received) | 0 | 76 |
Net Amount | (16) | (111) |
Total | ||
Gross Amount of Recorded Assets (Liabilities) | 215 | (140) |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 0 | 0 |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | (17) | 0 |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral Posted (Received) | 0 | 76 |
Net Amount | 198 | (64) |
Currency exchange rate contracts | ||
Derivative assets: | ||
Gross Amount of Recorded Assets (Liabilities) | 253 | 79 |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | (33) | (61) |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | (17) | 0 |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral Posted (Received) | 0 | 0 |
Net Amount | 203 | 18 |
Derivative liabilities: | ||
Gross Amount of Recorded Assets (Liabilities) | (39) | (238) |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 31 | 61 |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | 0 |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral Posted (Received) | 0 | 74 |
Net Amount | (8) | (103) |
Interest rate contracts | ||
Derivative assets: | ||
Gross Amount of Recorded Assets (Liabilities) | 7 | 8 |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | (4) | (6) |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | 0 |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral Posted (Received) | 0 | 0 |
Net Amount | 3 | 2 |
Derivative liabilities: | ||
Gross Amount of Recorded Assets (Liabilities) | (7) | (14) |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 6 | 6 |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | 0 |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral Posted (Received) | 0 | 2 |
Net Amount | (1) | (6) |
Total return swaps | ||
Derivative assets: | ||
Gross Amount of Recorded Assets (Liabilities) | 4 | |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 0 | |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral Posted (Received) | 0 | |
Net Amount | 4 | |
Derivative liabilities: | ||
Gross Amount of Recorded Assets (Liabilities) | (4) | |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 0 | |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral Posted (Received) | 0 | |
Net Amount | (4) | |
Stock warrants | ||
Derivative assets: | ||
Gross Amount of Recorded Assets (Liabilities) | 21 | |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 0 | |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral Posted (Received) | 0 | |
Net Amount | 21 | |
Cross currency interest rate contracts | ||
Derivative assets: | ||
Gross Amount of Recorded Assets (Liabilities) | 9 | 6 |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | (1) | (4) |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | 0 |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral Posted (Received) | 0 | 0 |
Net Amount | 8 | 2 |
Derivative liabilities: | ||
Gross Amount of Recorded Assets (Liabilities) | (4) | (6) |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 1 | 4 |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | 0 |
Gross Amount Not Offset on the Balance Sheet, Securities Collateral Posted (Received) | 0 | 0 |
Net Amount | $ (3) | $ (2) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jan. 25, 2019 | Apr. 27, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 2,545 | $ 2,407 |
Work in-process | 560 | 496 |
Raw materials | 761 | 676 |
Total | $ 3,866 | $ 3,579 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill (Details) $ in Millions | 9 Months Ended |
Jan. 25, 2019USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 39,543 |
Goodwill as a result of acquisitions | 1,360 |
Currency translation and other | (900) |
Ending balance | 40,003 |
Cardiac and Vascular Group | |
Goodwill [Roll Forward] | |
Beginning balance | 6,791 |
Goodwill as a result of acquisitions | 0 |
Currency translation and other | (82) |
Ending balance | 6,709 |
Minimally Invasive Therapies Group | |
Goodwill [Roll Forward] | |
Beginning balance | 21,155 |
Goodwill as a result of acquisitions | 82 |
Currency translation and other | (691) |
Ending balance | 20,546 |
Restorative Therapies Group | |
Goodwill [Roll Forward] | |
Beginning balance | 9,717 |
Goodwill as a result of acquisitions | 1,254 |
Currency translation and other | (126) |
Ending balance | 10,845 |
Diabetes Group | |
Goodwill [Roll Forward] | |
Beginning balance | 1,880 |
Goodwill as a result of acquisitions | 24 |
Currency translation and other | (1) |
Ending balance | $ 1,903 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Goodwill [Line Items] | ||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Definite-lived intangible asset charges | 0 | 87,000,000 | 0 | |
Impairment of indefinite-lived intangible assets | 21,000,000 | 63,000,000 | 21,000,000 | 68,000,000 |
Amortization expense | 436,000,000 | 461,000,000 | 1,327,000,000 | 1,375,000,000 |
Restorative Therapies Group | ||||
Goodwill [Line Items] | ||||
Definite-lived intangible asset charges | 26,000,000 | 26,000,000 | ||
Impairment of indefinite-lived intangible assets | $ 11,000,000 | $ 63,000,000 | 11,000,000 | $ 63,000,000 |
Cardiac and Vascular Group | ||||
Goodwill [Line Items] | ||||
Definite-lived intangible asset charges | $ 61,000,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Carrying Amount and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Millions | Jan. 25, 2019 | Apr. 27, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Definite-lived | $ 29,077 | $ 29,434 |
Accumulated Amortization | (8,693) | (8,201) |
IPR&D | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Indefinite-lived | 451 | 490 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Definite-lived | 16,950 | 16,949 |
Accumulated Amortization | (3,854) | (3,139) |
Purchased technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Definite-lived | 11,469 | 11,569 |
Accumulated Amortization | (4,464) | (4,441) |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Definite-lived | 570 | 822 |
Accumulated Amortization | (320) | (569) |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Definite-lived | 88 | 94 |
Accumulated Amortization | $ (55) | $ (52) |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Future Aggregate Amortization Expense of Amortizable Intangible Assets (Details) $ in Millions | Jan. 25, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining 2,019 | $ 437 |
2,020 | 1,740 |
2,021 | 1,723 |
2,022 | 1,683 |
2,023 | 1,614 |
2,024 | $ 1,573 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | Apr. 27, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Tax Cuts and Jobs Act of 2017, measurement period adjustment, net benefit | $ 12,000,000 | $ 25,000,000 | |||
Cumulative income tax charge associated with the Tax Act | 2,500,000,000 | ||||
Tax Cuts and Jobs Act of 2017, total transition tax charge | 2,400,000,000 | ||||
Tax Cuts and Jobs Act of 2017, charge resulting from removal of permanent reinvestment assertion | 118,000,000 | ||||
Tax Cuts and Jobs Act of 2017, remeasure of deferred tax assets, liabilities, and valuation allowances, provisional tax benefit | $ 77,000,000 | ||||
Effective tax rate | 7.20% | 235.50% | 11.20% | 58.70% | |
Certain tax adjustments | $ (64,000,000) | $ 2,200,000,000 | $ (35,000,000) | $ 1,900,000,000 | |
Benefit related to intercompany legal entity restructuring | 32,000,000 | 32,000,000 | |||
Tax charge (benefit) related to tax effect from divestiture | (20,000,000) | (20,000,000) | 37,000,000 | ||
Tax Cuts and Jobs Act of 2017, charge related to recognition of prepaid tax expense | 42,000,000 | ||||
Net charge associated with U.S. tax reform | $ 2,200,000,000 | 2,200,000,000 | |||
Tax benefit associated with intercompany sales of intellectual property | $ 398,000,000 | ||||
Gross unrecognized tax benefits | 1,800,000,000 | 1,800,000,000 | $ 1,700,000,000 | ||
Accrued gross interest and penalties | 192,000,000 | 192,000,000 | |||
Unrecognized tax benefits that would impact effective tax rate | $ 1,700,000,000 | $ 1,700,000,000 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Numerator: | ||||
Net income (loss) attributable to ordinary shareholders | $ 1,269 | $ (1,389) | $ 3,459 | $ 1,644 |
Denominator: | ||||
Basic - weighted average shares outstanding (shares) | 1,342.8 | 1,354 | 1,348.1 | 1,357.2 |
Effect of dilutive securities: | ||||
Employee stock options (shares) | 6.9 | 0 | 7.9 | 8.1 |
Employee restricted stock units (shares) | 3 | 0 | 3.2 | 3.4 |
Other (shares) | 0 | 0 | 0.3 | 0.2 |
Diluted - weighted average shares outstanding (shares) | 1,352.7 | 1,354 | 1,359.5 | 1,368.9 |
Basic earnings (loss) per share (usd per share) | $ 0.95 | $ (1.03) | $ 2.57 | $ 1.21 |
Diluted earnings (loss) per share (usd per share) | $ 0.94 | $ (1.03) | $ 2.54 | $ 1.20 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Common Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 10.5 | |||
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 7 | 10 | 7 | 9 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 60 | $ 72 | $ 228 | $ 270 |
Income tax benefits | (8) | (12) | (40) | (69) |
Total stock-based compensation expense, net of tax | 52 | 60 | 188 | 201 |
Cost of products sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 5 | 10 | 23 | 34 |
Research and development expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 8 | 8 | 29 | 29 |
Selling, general, and administrative expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 47 | 54 | 176 | 207 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 11 | 28 | 62 | 105 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 43 | 38 | 144 | 145 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 6 | $ 6 | $ 22 | $ 20 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - Pension plans - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
U.S. | ||||
Net Periodic Benefit Cost | ||||
Service cost | $ 27 | $ 29 | $ 81 | $ 87 |
Interest cost | 33 | 29 | 99 | 89 |
Expected return on plan assets | (54) | (51) | (162) | (155) |
Amortization of net actuarial loss | 19 | 20 | 57 | 60 |
Plan settlement | 0 | 15 | 0 | 15 |
Net periodic benefit cost | 25 | 42 | 75 | 96 |
Non-U.S. | ||||
Net Periodic Benefit Cost | ||||
Service cost | 15 | 17 | 45 | 51 |
Interest cost | 7 | 7 | 21 | 21 |
Expected return on plan assets | (14) | (13) | (42) | (39) |
Amortization of net actuarial loss | 3 | 4 | 9 | 12 |
Plan settlement | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 11 | $ 15 | $ 33 | $ 45 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income and Supplemental Equity Disclosure - Changes in AOCI (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | Apr. 28, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance | $ 50,822,000,000 | $ 50,416,000,000 | |||
Other comprehensive income (loss) | $ 154,000,000 | $ 678,000,000 | (722,000,000) | 1,231,000,000 | |
Cumulative effect of change in accounting principle | $ 296,000,000 | ||||
Balance | 49,941,000,000 | 50,340,000,000 | 49,941,000,000 | 50,340,000,000 | |
Unrealized (Loss) Gain on Investment Securities | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance | (194,000,000) | (69,000,000) | |||
Other comprehensive (loss) income before reclassifications | (7,000,000) | 50,000,000 | |||
Reclassifications | 30,000,000 | (9,000,000) | |||
Other comprehensive income (loss) | 23,000,000 | 41,000,000 | |||
Cumulative effect of change in accounting principle | 47,000,000 | ||||
Balance | (124,000,000) | (28,000,000) | (124,000,000) | (28,000,000) | |
Other Comprehensive Income (Loss), Tax [Abstract] | |||||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | (2,000,000) | 33,000,000 | |||
Reclassifications, tax expense (benefit) | (2,000,000) | 4,000,000 | |||
Cumulative Translation Adjustment | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance | (268,000,000) | (1,452,000,000) | |||
Other comprehensive (loss) income before reclassifications | (1,124,000,000) | 1,559,000,000 | |||
Reclassifications | 0 | (34,000,000) | |||
Other comprehensive income (loss) | (1,124,000,000) | 1,525,000,000 | |||
Cumulative effect of change in accounting principle | 0 | ||||
Balance | (1,392,000,000) | 73,000,000 | (1,392,000,000) | 73,000,000 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |||||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | (8,000,000) | ||||
Net Change in Retirement Obligations | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance | (1,117,000,000) | (1,129,000,000) | |||
Other comprehensive (loss) income before reclassifications | 0 | (38,000,000) | |||
Reclassifications | 65,000,000 | 49,000,000 | |||
Other comprehensive income (loss) | 65,000,000 | 11,000,000 | |||
Cumulative effect of change in accounting principle | 0 | ||||
Balance | (1,052,000,000) | (1,118,000,000) | (1,052,000,000) | (1,118,000,000) | |
Other Comprehensive Income (Loss), Tax [Abstract] | |||||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | 0 | (6,000,000) | |||
Reclassifications, tax expense (benefit) | 15,000,000 | 21,000,000 | |||
Unrealized (Loss) Gain on Derivative Financial Instruments | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance | (207,000,000) | 37,000,000 | |||
Other comprehensive (loss) income before reclassifications | 353,000,000 | (351,000,000) | |||
Reclassifications | (36,000,000) | 5,000,000 | |||
Other comprehensive income (loss) | 317,000,000 | (346,000,000) | |||
Cumulative effect of change in accounting principle | 0 | ||||
Balance | 110,000,000 | (309,000,000) | 110,000,000 | (309,000,000) | |
Other Comprehensive Income (Loss), Tax [Abstract] | |||||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | 116,000,000 | (156,000,000) | |||
Reclassifications, tax expense (benefit) | 16,000,000 | 0 | |||
Total Accumulated Other Comprehensive (Loss) Income | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Balance | (1,786,000,000) | (2,613,000,000) | |||
Other comprehensive (loss) income before reclassifications | (778,000,000) | 1,220,000,000 | |||
Reclassifications | 59,000,000 | 11,000,000 | |||
Other comprehensive income (loss) | (719,000,000) | 1,231,000,000 | |||
Cumulative effect of change in accounting principle | $ 47,000,000 | ||||
Balance | $ (2,458,000,000) | $ (1,382,000,000) | $ (2,458,000,000) | $ (1,382,000,000) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income and Supplemental Equity Disclosure - Supplemental Equity Schedule (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Jan. 25, 2019 | Oct. 26, 2018 | Jul. 27, 2018 | Apr. 27, 2018 | Jan. 26, 2018 | Oct. 27, 2017 | Jul. 28, 2017 | Jan. 25, 2019 | Jan. 26, 2018 | Apr. 28, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance | $ 50,822 | $ 50,340 | $ 50,416 | $ 50,822 | $ 50,416 | |||||
Net income (loss) | $ 1,271 | $ (1,392) | 3,468 | 1,630 | ||||||
Other comprehensive income (loss) | 154 | 678 | (722) | 1,231 | ||||||
Dividends to shareholders | (2,022) | (1,870) | ||||||||
Issuance of shares under stock purchase and award plans | 826 | 266 | ||||||||
Repurchase of ordinary shares | (2,663) | (1,897) | ||||||||
Stock-based compensation | 228 | 270 | ||||||||
Cumulative effect of change in accounting principle | $ 296 | |||||||||
Changes to noncontrolling ownership interests | 4 | (2) | ||||||||
Balance | $ 49,941 | $ 50,822 | $ 50,340 | 49,941 | 50,340 | |||||
Cash Dividends | ||||||||||
Cash dividends declared (usd per share) | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 | |||
Cash dividends paid (usd per share) | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 | |||
Total Shareholders' Equity | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance | $ 50,720 | $ 50,234 | $ 50,294 | 50,720 | 50,294 | |||||
Net income (loss) | 3,459 | 1,644 | ||||||||
Other comprehensive income (loss) | (719) | 1,231 | ||||||||
Dividends to shareholders | (2,022) | (1,870) | ||||||||
Issuance of shares under stock purchase and award plans | 826 | 266 | ||||||||
Repurchase of ordinary shares | (2,663) | (1,897) | ||||||||
Stock-based compensation | 228 | 270 | ||||||||
Cumulative effect of change in accounting principle | $ 296 | |||||||||
Balance | $ 49,829 | 50,720 | $ 50,234 | 49,829 | 50,234 | |||||
Noncontrolling Interests | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance | $ 102 | 106 | $ 122 | 102 | 122 | |||||
Net income (loss) | 9 | (14) | ||||||||
Other comprehensive income (loss) | (3) | 0 | ||||||||
Changes to noncontrolling ownership interests | 4 | (2) | ||||||||
Balance | $ 112 | $ 102 | $ 106 | $ 112 | $ 106 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Feb. 01, 2019claim | Nov. 28, 2018USD ($) | Dec. 14, 2011patent | Jun. 29, 2007 | May 31, 2017claim | Jan. 25, 2019USD ($)claimlandfillsubsidiarymanufacturer | Apr. 29, 2016USD ($)claim | Apr. 27, 2018USD ($) |
Loss Contingencies [Line Items] | ||||||||
Accrued certain litigation charges | $ | $ 800 | $ 900 | ||||||
Covidien | ||||||||
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 | |||||||
INFUSE | Product liability litigation | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of pending claims | 6,000 | |||||||
Pelvic mesh | Product liability litigation | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of pending claims | 15,800 | |||||||
Number of subsidiaries | subsidiary | 2 | |||||||
Number of manufacturers | manufacturer | 1 | |||||||
Settlement receivable | $ | $ 121 | |||||||
Number of claims settled | 5,000 | 11,000 | ||||||
Ethicon | ||||||||
Loss Contingencies [Line Items] | ||||||||
Patents infringed | patent | 1 | |||||||
Patents not infringed upon | patent | 6 | |||||||
Sasso | ||||||||
Loss Contingencies [Line Items] | ||||||||
Approximate amount of verdict returned against the Company | $ | $ 112 | |||||||
Subsequent Event | Pelvic mesh | Product liability litigation | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of claims settled | 15,100 |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 7,546 | $ 7,369 | $ 22,411 | $ 21,809 |
Income before Income Taxes by Reportable Segment | ||||
Interest expense | (243) | (270) | (726) | (829) |
Amortization of intangible assets | (436) | (461) | (1,327) | (1,375) |
Restructuring and associated costs | (26) | (7) | (112) | (23) |
Certain litigation charges | (63) | (61) | (166) | (61) |
Gain on sale of businesses | 0 | 0 | 0 | 697 |
Income before income taxes | 1,370 | 1,027 | 3,905 | 3,950 |
Ireland | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 24 | 20 | 68 | 62 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4,001 | 3,912 | 11,910 | 11,688 |
Rest of world | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,521 | 3,437 | 10,433 | 10,059 |
Total other countries, excluding Ireland | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 7,522 | 7,349 | 22,343 | 21,747 |
Operating Segments | ||||
Income before Income Taxes by Reportable Segment | ||||
Segment EBITA | 2,919 | 2,822 | 8,599 | 8,205 |
Segment Reconciling Items | ||||
Income before Income Taxes by Reportable Segment | ||||
Interest expense | (243) | (270) | (726) | (829) |
Interest income | 55 | 98 | 202 | 290 |
Amortization of intangible assets | (436) | (461) | (1,327) | (1,375) |
Corporate | (323) | (524) | (969) | (1,140) |
Centralized distribution costs | (383) | (471) | (1,312) | (1,399) |
Restructuring and associated costs | (66) | (30) | (256) | (62) |
Acquisition-related items | (17) | (30) | (57) | (101) |
Certain litigation charges | (63) | (61) | (166) | (61) |
Gain/(loss) on minority investments | 7 | 0 | 92 | 0 |
IPR&D charges | (11) | (46) | (26) | (46) |
Exit of businesses | (69) | 0 | (149) | 0 |
Divestiture-related items | 0 | 0 | 0 | (115) |
Gain on sale of businesses | 0 | 0 | 0 | 697 |
Contribution to Medtronic Foundation | 0 | 0 | 0 | (80) |
Hurricane Maria | 0 | 0 | 0 | (34) |
Cardiac and Vascular Group | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,786 | 2,800 | 8,455 | 8,219 |
Cardiac and Vascular Group | United States | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,369 | 1,395 | 4,240 | 4,151 |
Cardiac and Vascular Group | Operating Segments | ||||
Income before Income Taxes by Reportable Segment | ||||
Segment EBITA | 1,077 | 1,082 | 3,268 | 3,197 |
Minimally Invasive Therapies Group | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,124 | 2,041 | 6,223 | 6,479 |
Minimally Invasive Therapies Group | United States | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 930 | 862 | 2,659 | 2,902 |
Minimally Invasive Therapies Group | Operating Segments | ||||
Income before Income Taxes by Reportable Segment | ||||
Segment EBITA | 828 | 797 | 2,397 | 2,433 |
Restorative Therapies Group | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,026 | 1,944 | 5,968 | 5,616 |
Restorative Therapies Group | United States | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,354 | 1,300 | 4,005 | 3,779 |
Restorative Therapies Group | Operating Segments | ||||
Income before Income Taxes by Reportable Segment | ||||
Segment EBITA | 825 | 756 | 2,396 | 2,186 |
Diabetes Group | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 610 | 584 | 1,765 | 1,495 |
Diabetes Group | United States | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 348 | 355 | 1,006 | 856 |
Diabetes Group | Operating Segments | ||||
Income before Income Taxes by Reportable Segment | ||||
Segment EBITA | $ 189 | $ 187 | $ 538 | $ 389 |
Guarantor Financial Informati_3
Guarantor Financial Information - Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 25, 2019 | Jan. 26, 2018 | Jan. 25, 2019 | Jan. 26, 2018 | |
Condensed Statement of Income Captions [Line Items] | ||||
Net sales | $ 7,546 | $ 7,369 | $ 22,411 | $ 21,809 |
Costs and expenses: | ||||
Cost of products sold | 2,265 | 2,194 | 6,672 | 6,669 |
Research and development expense | 561 | 559 | 1,736 | 1,664 |
Selling, general, and administrative expense | 2,596 | 2,523 | 7,798 | 7,642 |
Amortization of intangible assets | 436 | 461 | 1,327 | 1,375 |
Restructuring charges, net | 26 | 7 | 112 | 23 |
Certain litigation charges | 63 | 61 | 166 | 61 |
Gain on sale of businesses | 0 | 0 | 0 | (697) |
Other operating expense (income), net | 57 | 128 | 278 | 360 |
Operating profit (loss) | 1,542 | 1,436 | 4,322 | 4,712 |
Other non-operating (income) expense, net | (71) | 139 | (309) | (67) |
Interest expense | 243 | 270 | 726 | 829 |
Equity in net (income) loss of subsidiaries | 0 | 0 | 0 | 0 |
Income before income taxes | 1,370 | 1,027 | 3,905 | 3,950 |
Income tax (benefit) provision | 99 | 2,419 | 437 | 2,320 |
Net income (loss) | 1,271 | (1,392) | 3,468 | 1,630 |
Net (income) loss attributable to noncontrolling interests | (2) | 3 | (9) | 14 |
Net income (loss) attributable to Medtronic | 1,269 | (1,389) | 3,459 | 1,644 |
Other comprehensive income (loss), net of tax | 154 | 678 | (722) | 1,231 |
Comprehensive (income) loss attributable to noncontrolling interests | (2) | 3 | (6) | 14 |
Comprehensive income (loss) attributable to Medtronic | 1,423 | (711) | 2,740 | 2,875 |
Consolidating Adjustments | Medtronic Senior Notes and Medtronic Luxco Senior Notes | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net sales | (281) | (275) | (1,007) | (877) |
Costs and expenses: | ||||
Cost of products sold | (164) | (178) | (642) | (581) |
Research and development expense | 0 | 0 | 0 | 0 |
Selling, general, and administrative expense | 0 | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Restructuring charges, net | 0 | 0 | 0 | 0 |
Certain litigation charges | 0 | 0 | 0 | 0 |
Gain on sale of businesses | 0 | |||
Other operating expense (income), net | (118) | (108) | (339) | (322) |
Operating profit (loss) | 1 | 11 | (26) | 26 |
Other non-operating (income) expense, net | 760 | 535 | 2,086 | 1,370 |
Interest expense | (760) | (535) | (2,086) | (1,370) |
Equity in net (income) loss of subsidiaries | 3,431 | (4,038) | 9,657 | 3,908 |
Income before income taxes | (3,430) | 4,049 | (9,683) | (3,882) |
Income tax (benefit) provision | 0 | 0 | 0 | 0 |
Net income (loss) | (3,430) | 4,049 | (9,683) | (3,882) |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Medtronic | (3,430) | 4,049 | (9,683) | (3,882) |
Other comprehensive income (loss), net of tax | (340) | (1,941) | 2,242 | (3,653) |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Medtronic | (3,770) | 2,108 | (7,441) | (7,535) |
Consolidating Adjustments | CIFSA Senior Notes | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of products sold | 0 | 0 | 0 | 0 |
Research and development expense | 0 | 0 | 0 | 0 |
Selling, general, and administrative expense | 0 | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Restructuring charges, net | 0 | 0 | 0 | 0 |
Certain litigation charges | 0 | 0 | 0 | 0 |
Gain on sale of businesses | 0 | 0 | ||
Other operating expense (income), net | 0 | 0 | 0 | 0 |
Operating profit (loss) | 0 | 0 | 0 | 0 |
Other non-operating (income) expense, net | 335 | 206 | 893 | 502 |
Interest expense | (335) | (206) | (893) | (502) |
Equity in net (income) loss of subsidiaries | 3,401 | (1,771) | 9,732 | 6,574 |
Income before income taxes | (3,401) | 1,771 | (9,732) | (6,574) |
Income tax (benefit) provision | 0 | 0 | 0 | 0 |
Net income (loss) | (3,401) | 1,771 | (9,732) | (6,574) |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Medtronic | (3,401) | 1,771 | (9,732) | (6,574) |
Other comprehensive income (loss), net of tax | (403) | (1,408) | 1,369 | (2,455) |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Medtronic | (3,804) | 363 | (8,363) | (9,029) |
Medtronic plc | Reportable Legal Entities | Medtronic Senior Notes and Medtronic Luxco Senior Notes | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of products sold | 0 | 0 | 0 | 0 |
Research and development expense | 0 | 0 | 0 | 0 |
Selling, general, and administrative expense | 2 | 4 | 8 | 9 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Restructuring charges, net | 0 | 0 | 0 | 0 |
Certain litigation charges | 0 | 0 | 0 | 0 |
Gain on sale of businesses | 0 | |||
Other operating expense (income), net | 15 | 10 | 40 | 35 |
Operating profit (loss) | (17) | (14) | (48) | (44) |
Other non-operating (income) expense, net | 0 | 0 | 0 | 0 |
Interest expense | 125 | 63 | 333 | 172 |
Equity in net (income) loss of subsidiaries | (1,410) | 1,314 | (3,835) | (1,855) |
Income before income taxes | 1,268 | (1,391) | 3,454 | 1,639 |
Income tax (benefit) provision | (1) | (2) | (5) | (5) |
Net income (loss) | 1,269 | (1,389) | 3,459 | 1,644 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Medtronic | 1,269 | (1,389) | 3,459 | 1,644 |
Other comprehensive income (loss), net of tax | 154 | 678 | (719) | 1,231 |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Medtronic | 1,423 | (711) | 2,740 | 2,875 |
Medtronic plc | Reportable Legal Entities | CIFSA Senior Notes | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of products sold | 0 | 0 | 0 | 0 |
Research and development expense | 0 | 0 | 0 | 0 |
Selling, general, and administrative expense | 2 | 4 | 8 | 9 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Restructuring charges, net | 0 | 0 | 0 | 0 |
Certain litigation charges | 0 | 0 | 0 | 0 |
Gain on sale of businesses | 0 | 0 | ||
Other operating expense (income), net | 15 | 10 | 40 | 35 |
Operating profit (loss) | (17) | (14) | (48) | (44) |
Other non-operating (income) expense, net | 0 | 0 | 0 | 0 |
Interest expense | 125 | 63 | 333 | 172 |
Equity in net (income) loss of subsidiaries | (1,410) | 1,314 | (3,835) | (1,855) |
Income before income taxes | 1,268 | (1,391) | 3,454 | 1,639 |
Income tax (benefit) provision | (1) | (2) | (5) | (5) |
Net income (loss) | 1,269 | (1,389) | 3,459 | 1,644 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Medtronic | 1,269 | (1,389) | 3,459 | 1,644 |
Other comprehensive income (loss), net of tax | 154 | 678 | (719) | 1,231 |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Medtronic | 1,423 | (711) | 2,740 | 2,875 |
Subsidiary Issuer | Reportable Legal Entities | Medtronic Senior Notes and Medtronic Luxco Senior Notes | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net sales | 281 | 275 | 1,007 | 879 |
Costs and expenses: | ||||
Cost of products sold | 223 | 246 | 776 | 702 |
Research and development expense | 152 | 166 | 496 | 495 |
Selling, general, and administrative expense | 362 | 364 | 1,142 | 1,089 |
Amortization of intangible assets | 2 | 2 | 6 | 6 |
Restructuring charges, net | 3 | 0 | 14 | 2 |
Certain litigation charges | 12 | 24 | 90 | 24 |
Gain on sale of businesses | 0 | |||
Other operating expense (income), net | (827) | (773) | (1,759) | (1,334) |
Operating profit (loss) | 354 | 246 | 242 | (105) |
Other non-operating (income) expense, net | (151) | 92 | (445) | (57) |
Interest expense | 501 | 464 | 1,444 | 1,330 |
Equity in net (income) loss of subsidiaries | (678) | 1,350 | (2,178) | (387) |
Income before income taxes | 682 | (1,660) | 1,421 | (991) |
Income tax (benefit) provision | 40 | 316 | (79) | (3) |
Net income (loss) | 642 | (1,976) | 1,500 | (988) |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Medtronic | 642 | (1,976) | 1,500 | (988) |
Other comprehensive income (loss), net of tax | 54 | 599 | (747) | 1,228 |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Medtronic | 696 | (1,377) | 753 | 240 |
Subsidiary Issuer | Reportable Legal Entities | CIFSA Senior Notes | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of products sold | 0 | 0 | 0 | 0 |
Research and development expense | 0 | 0 | 0 | 0 |
Selling, general, and administrative expense | 0 | 0 | 1 | 0 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Restructuring charges, net | 0 | 0 | 0 | 0 |
Certain litigation charges | 0 | 0 | 0 | 0 |
Gain on sale of businesses | 0 | 0 | ||
Other operating expense (income), net | 0 | 0 | 0 | 1 |
Operating profit (loss) | 0 | 0 | (1) | (1) |
Other non-operating (income) expense, net | (9) | (13) | (29) | (45) |
Interest expense | 23 | 19 | 66 | 63 |
Equity in net (income) loss of subsidiaries | (655) | (921) | (2,271) | (3,062) |
Income before income taxes | 641 | 915 | 2,233 | 3,043 |
Income tax (benefit) provision | 0 | 0 | 0 | 0 |
Net income (loss) | 641 | 915 | 2,233 | 3,043 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Medtronic | 641 | 915 | 2,233 | 3,043 |
Other comprehensive income (loss), net of tax | 95 | 52 | 69 | (7) |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Medtronic | 736 | 967 | 2,302 | 3,036 |
Subsidiary Guarantors | Reportable Legal Entities | Medtronic Senior Notes and Medtronic Luxco Senior Notes | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of products sold | 0 | 0 | 0 | 0 |
Research and development expense | 0 | 0 | 0 | 0 |
Selling, general, and administrative expense | 0 | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Restructuring charges, net | 0 | 0 | 0 | 0 |
Certain litigation charges | 0 | 0 | 0 | 0 |
Gain on sale of businesses | 0 | |||
Other operating expense (income), net | 0 | 0 | 0 | 0 |
Operating profit (loss) | 0 | 0 | 0 | 0 |
Other non-operating (income) expense, net | (200) | (133) | (539) | (344) |
Interest expense | 133 | 73 | 349 | 155 |
Equity in net (income) loss of subsidiaries | (1,343) | 1,374 | (3,644) | (1,666) |
Income before income taxes | 1,410 | (1,314) | 3,834 | 1,855 |
Income tax (benefit) provision | 0 | 0 | 0 | 0 |
Net income (loss) | 1,410 | (1,314) | 3,834 | 1,855 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Medtronic | 1,410 | (1,314) | 3,834 | 1,855 |
Other comprehensive income (loss), net of tax | 154 | 678 | (719) | 1,231 |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Medtronic | 1,564 | (636) | 3,115 | 3,086 |
Subsidiary Guarantors | Reportable Legal Entities | CIFSA Senior Notes | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of products sold | 0 | 0 | 0 | 0 |
Research and development expense | 0 | 0 | 0 | 0 |
Selling, general, and administrative expense | 1 | 0 | 2 | 1 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Restructuring charges, net | 0 | 0 | 0 | 0 |
Certain litigation charges | 0 | 0 | 0 | 0 |
Gain on sale of businesses | 0 | 0 | ||
Other operating expense (income), net | 0 | 0 | 0 | 0 |
Operating profit (loss) | (1) | 0 | (2) | (1) |
Other non-operating (income) expense, net | (207) | (137) | (559) | (355) |
Interest expense | 132 | 73 | 348 | 156 |
Equity in net (income) loss of subsidiaries | (1,336) | 1,378 | (3,626) | (1,657) |
Income before income taxes | 1,410 | (1,314) | 3,835 | 1,855 |
Income tax (benefit) provision | 0 | 0 | 0 | 0 |
Net income (loss) | 1,410 | (1,314) | 3,835 | 1,855 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Medtronic | 1,410 | (1,314) | 3,835 | 1,855 |
Other comprehensive income (loss), net of tax | 154 | 678 | (719) | 1,231 |
Comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Medtronic | 1,564 | (636) | 3,116 | 3,086 |
Subsidiary Non-guarantors | Reportable Legal Entities | Medtronic Senior Notes and Medtronic Luxco Senior Notes | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net sales | 7,546 | 7,369 | 22,411 | 21,807 |
Costs and expenses: | ||||
Cost of products sold | 2,206 | 2,126 | 6,538 | 6,548 |
Research and development expense | 409 | 393 | 1,240 | 1,169 |
Selling, general, and administrative expense | 2,232 | 2,155 | 6,648 | 6,544 |
Amortization of intangible assets | 434 | 459 | 1,321 | 1,369 |
Restructuring charges, net | 23 | 7 | 98 | 21 |
Certain litigation charges | 51 | 37 | 76 | 37 |
Gain on sale of businesses | (697) | |||
Other operating expense (income), net | 987 | 999 | 2,336 | 1,981 |
Operating profit (loss) | 1,204 | 1,193 | 4,154 | 4,835 |
Other non-operating (income) expense, net | (480) | (355) | (1,411) | (1,036) |
Interest expense | 244 | 205 | 686 | 542 |
Equity in net (income) loss of subsidiaries | 0 | 0 | 0 | 0 |
Income before income taxes | 1,440 | 1,343 | 4,879 | 5,329 |
Income tax (benefit) provision | 60 | 2,105 | 521 | 2,328 |
Net income (loss) | 1,380 | (762) | 4,358 | 3,001 |
Net (income) loss attributable to noncontrolling interests | (2) | 3 | (9) | 14 |
Net income (loss) attributable to Medtronic | 1,378 | (759) | 4,349 | 3,015 |
Other comprehensive income (loss), net of tax | 132 | 664 | (779) | 1,194 |
Comprehensive (income) loss attributable to noncontrolling interests | (2) | 3 | (6) | 14 |
Comprehensive income (loss) attributable to Medtronic | 1,510 | (95) | 3,573 | 4,209 |
Subsidiary Non-guarantors | Reportable Legal Entities | CIFSA Senior Notes | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net sales | 7,546 | 7,369 | 22,411 | 21,809 |
Costs and expenses: | ||||
Cost of products sold | 2,265 | 2,194 | 6,672 | 6,669 |
Research and development expense | 561 | 559 | 1,736 | 1,664 |
Selling, general, and administrative expense | 2,593 | 2,519 | 7,787 | 7,632 |
Amortization of intangible assets | 436 | 461 | 1,327 | 1,375 |
Restructuring charges, net | 26 | 7 | 112 | 23 |
Certain litigation charges | 63 | 61 | 166 | 61 |
Gain on sale of businesses | 0 | (697) | ||
Other operating expense (income), net | 42 | 118 | 238 | 324 |
Operating profit (loss) | 1,560 | 1,450 | 4,373 | 4,758 |
Other non-operating (income) expense, net | (190) | 83 | (614) | (169) |
Interest expense | 298 | 321 | 872 | 940 |
Equity in net (income) loss of subsidiaries | 0 | 0 | 0 | 0 |
Income before income taxes | 1,452 | 1,046 | 4,115 | 3,987 |
Income tax (benefit) provision | 100 | 2,421 | 442 | 2,325 |
Net income (loss) | 1,352 | (1,375) | 3,673 | 1,662 |
Net (income) loss attributable to noncontrolling interests | (2) | 3 | (9) | 14 |
Net income (loss) attributable to Medtronic | 1,350 | (1,372) | 3,664 | 1,676 |
Other comprehensive income (loss), net of tax | 154 | 678 | (722) | 1,231 |
Comprehensive (income) loss attributable to noncontrolling interests | (2) | 3 | (6) | 14 |
Comprehensive income (loss) attributable to Medtronic | $ 1,504 | $ (694) | $ 2,945 | $ 2,907 |
Guarantor Financial Informati_4
Guarantor Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Jan. 25, 2019 | Apr. 27, 2018 | Jan. 26, 2018 | Apr. 28, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 3,703 | $ 3,669 | $ 6,358 | $ 4,967 |
Investments | 5,439 | 7,558 | ||
Accounts receivable, net | 5,854 | 5,987 | ||
Inventories, net | 3,866 | 3,579 | ||
Intercompany receivable | 0 | 0 | ||
Other current assets | 2,015 | 2,187 | ||
Total current assets | 20,877 | 22,980 | ||
Property, plant, and equipment, net | 4,593 | 4,604 | ||
Goodwill | 40,003 | 39,543 | ||
Other intangible assets, net | 20,835 | 21,723 | ||
Tax assets | 1,496 | 1,465 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany loans receivable | 0 | 0 | ||
Other assets | 926 | 1,078 | ||
Total assets | 88,730 | 91,393 | ||
Current liabilities: | ||||
Current debt obligations | 1,356 | 2,058 | ||
Accounts payable | 1,706 | 1,628 | ||
Intercompany payable | 0 | 0 | ||
Accrued compensation | 1,796 | 1,988 | ||
Accrued income taxes | 648 | 979 | ||
Other accrued expenses | 3,347 | 3,431 | ||
Total current liabilities | 8,853 | 10,084 | ||
Long-term debt | 23,674 | 23,699 | ||
Accrued compensation and retirement benefits | 1,313 | 1,425 | ||
Accrued income taxes | 2,874 | 3,051 | ||
Intercompany loans payable | 0 | 0 | ||
Deferred tax liabilities | 1,356 | 1,423 | ||
Other liabilities | 719 | 889 | ||
Total liabilities | 38,789 | 40,571 | ||
Shareholders’ equity | 49,829 | 50,720 | ||
Noncontrolling interests | 112 | 102 | ||
Total equity | 49,941 | 50,822 | 50,340 | 50,416 |
Total liabilities and equity | 88,730 | 91,393 | ||
Consolidating Adjustments | Medtronic Senior Notes and Medtronic Luxco Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | (180) | (125) | ||
Intercompany receivable | (56,978) | (57,446) | ||
Other current assets | 0 | 0 | ||
Total current assets | (57,158) | (57,571) | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | (203,427) | (195,337) | ||
Intercompany loans receivable | (66,829) | (63,052) | ||
Other assets | 0 | 0 | ||
Total assets | (327,414) | (315,960) | ||
Current liabilities: | ||||
Current debt obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | (56,978) | (57,446) | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 0 | 0 | ||
Total current liabilities | (56,978) | (57,446) | ||
Long-term debt | 0 | 0 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Intercompany loans payable | (66,829) | (63,052) | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | (123,807) | (120,498) | ||
Shareholders’ equity | (203,607) | (195,462) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (203,607) | (195,462) | ||
Total liabilities and equity | (327,414) | (315,960) | ||
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 | (18,024) | (6,940) | ||
Other current assets | 0 | 0 | ||
Total current assets | (18,024) | (6,940) | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | (159,253) | (151,742) | ||
Intercompany loans receivable | (53,977) | (43,064) | ||
Other assets | 0 | 0 | ||
Total assets | (231,254) | (201,746) | ||
Current liabilities: | ||||
Current debt obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | (18,024) | (6,940) | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 0 | 0 | ||
Total current liabilities | (18,024) | (6,940) | ||
Long-term debt | 0 | 0 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Intercompany loans payable | (53,977) | (43,064) | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | (72,001) | (50,004) | ||
Shareholders’ equity | (159,253) | (151,742) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (159,253) | (151,742) | ||
Total liabilities and equity | (231,254) | (201,746) | ||
Medtronic plc | Reportable Legal Entities | Medtronic Senior Notes and Medtronic Luxco 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 | 46 | 37 | ||
Other current assets | 9 | 6 | ||
Total current assets | 55 | 43 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 63,260 | 60,381 | ||
Intercompany loans receivable | 3,000 | 3,000 | ||
Other assets | 0 | 0 | ||
Total assets | 66,315 | 63,424 | ||
Current liabilities: | ||||
Current debt obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Accrued compensation | 4 | 3 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 20 | 16 | ||
Total current liabilities | 24 | 19 | ||
Long-term debt | 0 | 0 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 10 | 10 | ||
Intercompany loans payable | 16,452 | 12,675 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 16,486 | 12,704 | ||
Shareholders’ equity | 49,829 | 50,720 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 49,829 | 50,720 | ||
Total liabilities and equity | 66,315 | 63,424 | ||
Medtronic plc | Reportable Legal Entities | 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 | 46 | 37 | ||
Other current assets | 9 | 6 | ||
Total current assets | 55 | 43 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 63,260 | 60,381 | ||
Intercompany loans receivable | 3,000 | 3,000 | ||
Other assets | 0 | 0 | ||
Total assets | 66,315 | 63,424 | ||
Current liabilities: | ||||
Current debt obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Accrued compensation | 4 | 3 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 20 | 16 | ||
Total current liabilities | 24 | 19 | ||
Long-term debt | 0 | 0 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 10 | 10 | ||
Intercompany loans payable | 16,452 | 12,675 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 16,486 | 12,704 | ||
Shareholders’ equity | 49,829 | 50,720 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 49,829 | 50,720 | ||
Total liabilities and equity | 66,315 | 63,424 | ||
Subsidiary Issuer | Reportable Legal Entities | Medtronic Senior Notes and Medtronic Luxco Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 16 | 20 | 38 | 45 |
Investments | 0 | 76 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 176 | 165 | ||
Intercompany receivable | 20,062 | 23,480 | ||
Other current assets | 159 | 178 | ||
Total current assets | 20,413 | 23,919 | ||
Property, plant, and equipment, net | 1,439 | 1,426 | ||
Goodwill | 1,883 | 1,883 | ||
Other intangible assets, net | 0 | 12 | ||
Tax assets | 447 | 385 | ||
Investment in subsidiaries | 76,021 | 73,495 | ||
Intercompany loans receivable | 21 | 6,519 | ||
Other assets | 255 | 223 | ||
Total assets | 100,479 | 107,862 | ||
Current liabilities: | ||||
Current debt obligations | 1 | 0 | ||
Accounts payable | 459 | 381 | ||
Intercompany payable | 20,271 | 28,401 | ||
Accrued compensation | 733 | 787 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 557 | 359 | ||
Total current liabilities | 22,021 | 29,928 | ||
Long-term debt | 20,620 | 20,598 | ||
Accrued compensation and retirement benefits | 836 | 902 | ||
Accrued income taxes | 650 | 531 | ||
Intercompany loans payable | 13,879 | 14,339 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 41 | 68 | ||
Total liabilities | 58,047 | 66,366 | ||
Shareholders’ equity | 42,432 | 41,496 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 42,432 | 41,496 | ||
Total liabilities and equity | 100,479 | 107,862 | ||
Subsidiary Issuer | Reportable Legal Entities | CIFSA Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 33 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 33,203 | 31,239 | ||
Intercompany loans receivable | 1,061 | 1,291 | ||
Other assets | 0 | 0 | ||
Total assets | 34,264 | 32,530 | ||
Current liabilities: | ||||
Current debt obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 1,302 | 1,283 | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 12 | 21 | ||
Total current liabilities | 1,314 | 1,304 | ||
Long-term debt | 2,095 | 2,111 | ||
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 | ||
Total liabilities | 3,509 | 3,515 | ||
Shareholders’ equity | 30,755 | 29,015 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 30,755 | 29,015 | ||
Total liabilities and equity | 34,264 | 32,530 | ||
Subsidiary Guarantors | Reportable Legal Entities | Medtronic Senior Notes and Medtronic Luxco Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 336 | 1 | 61 | 5 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Other current assets | 3 | 0 | ||
Total current assets | 339 | 1 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 64,146 | 61,461 | ||
Intercompany loans receivable | 30,022 | 19,337 | ||
Other assets | 0 | 0 | ||
Total assets | 94,507 | 80,799 | ||
Current liabilities: | ||||
Current debt obligations | 1,000 | 1,696 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 16,601 | 5,542 | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 32 | 4 | ||
Total current liabilities | 17,633 | 7,242 | ||
Long-term debt | 845 | 844 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Intercompany loans payable | 19,794 | 19,335 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 38,272 | 27,421 | ||
Shareholders’ equity | 56,235 | 53,378 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 56,235 | 53,378 | ||
Total liabilities and equity | 94,507 | 80,799 | ||
Subsidiary Guarantors | Reportable Legal Entities | CIFSA Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 336 | 1 | 61 | 5 |
Investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Intercompany receivable | 1,362 | 1,343 | ||
Other current assets | 3 | 0 | ||
Total current assets | 1,701 | 1,344 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Tax assets | 0 | 0 | ||
Investment in subsidiaries | 62,790 | 60,122 | ||
Intercompany loans receivable | 30,022 | 19,337 | ||
Other assets | 0 | 0 | ||
Total assets | 94,513 | 80,803 | ||
Current liabilities: | ||||
Current debt obligations | 1,000 | 1,696 | ||
Accounts payable | 0 | 0 | ||
Intercompany payable | 16,601 | 5,542 | ||
Accrued compensation | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Other accrued expenses | 37 | 8 | ||
Total current liabilities | 17,638 | 7,246 | ||
Long-term debt | 845 | 844 | ||
Accrued compensation and retirement benefits | 0 | 0 | ||
Accrued income taxes | 0 | 0 | ||
Intercompany loans payable | 19,794 | 19,335 | ||
Deferred tax liabilities | 0 | 0 | ||
Other liabilities | 1 | 0 | ||
Total liabilities | 38,278 | 27,425 | ||
Shareholders’ equity | 56,235 | 53,378 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 56,235 | 53,378 | ||
Total liabilities and equity | 94,513 | 80,803 | ||
Subsidiary Non-guarantors | Reportable Legal Entities | Medtronic Senior Notes and Medtronic Luxco Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 3,351 | 3,648 | 6,259 | 4,917 |
Investments | 5,439 | 7,482 | ||
Accounts receivable, net | 5,854 | 5,987 | ||
Inventories, net | 3,870 | 3,539 | ||
Intercompany receivable | 36,870 | 33,929 | ||
Other current assets | 1,844 | 2,003 | ||
Total current assets | 57,228 | 56,588 | ||
Property, plant, and equipment, net | 3,154 | 3,178 | ||
Goodwill | 38,120 | 37,660 | ||
Other intangible assets, net | 20,835 | 21,711 | ||
Tax assets | 1,049 | 1,080 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany loans receivable | 33,786 | 34,196 | ||
Other assets | 671 | 855 | ||
Total assets | 154,843 | 155,268 | ||
Current liabilities: | ||||
Current debt obligations | 355 | 362 | ||
Accounts payable | 1,247 | 1,247 | ||
Intercompany payable | 20,106 | 23,503 | ||
Accrued compensation | 1,059 | 1,198 | ||
Accrued income taxes | 648 | 979 | ||
Other accrued expenses | 2,738 | 3,052 | ||
Total current liabilities | 26,153 | 30,341 | ||
Long-term debt | 2,209 | 2,257 | ||
Accrued compensation and retirement benefits | 477 | 523 | ||
Accrued income taxes | 2,214 | 2,510 | ||
Intercompany loans payable | 16,704 | 16,703 | ||
Deferred tax liabilities | 1,356 | 1,423 | ||
Other liabilities | 678 | 821 | ||
Total liabilities | 49,791 | 54,578 | ||
Shareholders’ equity | 104,940 | 100,588 | ||
Noncontrolling interests | 112 | 102 | ||
Total equity | 105,052 | 100,690 | ||
Total liabilities and equity | 154,843 | 155,268 | ||
Subsidiary Non-guarantors | Reportable Legal Entities | CIFSA Senior Notes | ||||
Current assets: | ||||
Cash and cash equivalents | 3,367 | 3,668 | $ 6,297 | $ 4,929 |
Investments | 5,439 | 7,558 | ||
Accounts receivable, net | 5,854 | 5,987 | ||
Inventories, net | 3,866 | 3,579 | ||
Intercompany receivable | 16,616 | 5,560 | ||
Other current assets | 2,003 | 2,181 | ||
Total current assets | 37,145 | 28,533 | ||
Property, plant, and equipment, net | 4,593 | 4,604 | ||
Goodwill | 40,003 | 39,543 | ||
Other intangible assets, net | 20,835 | 21,723 | ||
Tax assets | 1,496 | 1,465 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany loans receivable | 19,894 | 19,436 | ||
Other assets | 926 | 1,078 | ||
Total assets | 124,892 | 116,382 | ||
Current liabilities: | ||||
Current debt obligations | 356 | 362 | ||
Accounts payable | 1,706 | 1,628 | ||
Intercompany payable | 121 | 115 | ||
Accrued compensation | 1,792 | 1,985 | ||
Accrued income taxes | 648 | 979 | ||
Other accrued expenses | 3,278 | 3,386 | ||
Total current liabilities | 7,901 | 8,455 | ||
Long-term debt | 20,734 | 20,744 | ||
Accrued compensation and retirement benefits | 1,313 | 1,425 | ||
Accrued income taxes | 2,864 | 3,041 | ||
Intercompany loans payable | 17,631 | 10,954 | ||
Deferred tax liabilities | 1,356 | 1,423 | ||
Other liabilities | 718 | 889 | ||
Total liabilities | 52,517 | 46,931 | ||
Shareholders’ equity | 72,263 | 69,349 | ||
Noncontrolling interests | 112 | 102 | ||
Total equity | 72,375 | 69,451 | ||
Total liabilities and equity | $ 124,892 | $ 116,382 |
Guarantor Financial Informati_5
Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jan. 25, 2019 | Jan. 26, 2018 | |
Operating Activities: | ||
Net cash provided by (used in) operating activities | $ 4,920 | $ 3,646 |
Investing Activities: | ||
Acquisitions, net of cash acquired | (1,615) | (111) |
Proceeds from sale of businesses | 0 | 6,058 |
Additions to property, plant, and equipment | (799) | (776) |
Purchases of investments | (1,987) | (2,479) |
Sales and maturities of investments | 4,159 | 3,060 |
Capital contribution paid | 0 | 0 |
Other investing activities | (3) | (5) |
Net cash (used in) provided by investing activities | (245) | 5,747 |
Financing Activities: | ||
Change in current debt obligations, net | (696) | (391) |
Issuance of long-term debt | 3 | 21 |
Payments on long-term debt | (29) | (4,167) |
Dividends to shareholders | (2,022) | (1,870) |
Issuance of ordinary shares | 891 | 333 |
Repurchase of ordinary shares | (2,728) | (1,964) |
Net intercompany loan borrowings (repayments) | 0 | 0 |
Intercompany dividend paid | 0 | |
Capital contribution received | 0 | 0 |
Other financing activities | 10 | (88) |
Net cash used in financing activities | (4,571) | (8,126) |
Effect of exchange rate changes on cash and cash equivalents | (70) | 124 |
Net change in cash and cash equivalents | 34 | 1,391 |
Cash and cash equivalents at beginning of period | 3,669 | 4,967 |
Cash and cash equivalents at end of period | 3,703 | 6,358 |
Consolidating Adjustments | Medtronic Senior Notes and Medtronic Luxco Senior Notes | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Investing Activities: | ||
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of businesses | 0 | |
Additions to property, plant, and equipment | 0 | 0 |
Purchases of investments | 0 | 0 |
Sales and maturities of investments | 0 | 0 |
Capital contribution paid | 65 | 4,259 |
Other investing activities | 0 | 0 |
Net cash (used in) provided by investing activities | 65 | 4,259 |
Financing Activities: | ||
Change in current debt obligations, net | 0 | 0 |
Issuance of long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Dividends to shareholders | 0 | 0 |
Issuance of ordinary shares | 0 | 0 |
Repurchase of ordinary shares | 0 | 0 |
Net intercompany loan borrowings (repayments) | 0 | 0 |
Capital contribution received | (65) | (4,259) |
Other financing activities | 0 | 0 |
Net cash used in financing activities | (65) | (4,259) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Consolidating Adjustments | CIFSA Senior Notes | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 0 | (1,048) |
Investing Activities: | ||
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of businesses | 0 | |
Additions to property, plant, and equipment | 0 | 0 |
Purchases of investments | 0 | 0 |
Sales and maturities of investments | 0 | 0 |
Capital contribution paid | 205 | 4,731 |
Other investing activities | 0 | 0 |
Net cash (used in) provided by investing activities | 205 | 4,731 |
Financing Activities: | ||
Change in current debt obligations, net | 0 | 0 |
Issuance of long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Dividends to shareholders | 0 | 0 |
Issuance of ordinary shares | 0 | 0 |
Repurchase of ordinary shares | 0 | 0 |
Net intercompany loan borrowings (repayments) | 0 | 0 |
Intercompany dividend paid | 1,048 | |
Capital contribution received | (205) | (4,731) |
Other financing activities | 0 | 0 |
Net cash used in financing activities | (205) | (3,683) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Medtronic plc | Reportable Legal Entities | Medtronic Senior Notes and Medtronic Luxco Senior Notes | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 100 | 172 |
Investing Activities: | ||
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of businesses | 0 | |
Additions to property, plant, and equipment | 0 | 0 |
Purchases of investments | 0 | 0 |
Sales and maturities of investments | 0 | 0 |
Capital contribution paid | (18) | 0 |
Other investing activities | 0 | 0 |
Net cash (used in) provided by investing activities | (18) | 0 |
Financing Activities: | ||
Change in current debt obligations, net | 0 | 0 |
Issuance of long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Dividends to shareholders | (2,022) | (1,870) |
Issuance of ordinary shares | 891 | 333 |
Repurchase of ordinary shares | (2,728) | (1,964) |
Net intercompany loan borrowings (repayments) | 3,777 | 3,329 |
Capital contribution received | 0 | 0 |
Other financing activities | 0 | 0 |
Net cash used in financing activities | (82) | (172) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Medtronic plc | Reportable Legal Entities | CIFSA Senior Notes | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 100 | 172 |
Investing Activities: | ||
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of businesses | 0 | |
Additions to property, plant, and equipment | 0 | 0 |
Purchases of investments | 0 | 0 |
Sales and maturities of investments | 0 | 0 |
Capital contribution paid | (18) | 0 |
Other investing activities | 0 | 0 |
Net cash (used in) provided by investing activities | (18) | 0 |
Financing Activities: | ||
Change in current debt obligations, net | 0 | 0 |
Issuance of long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Dividends to shareholders | (2,022) | (1,870) |
Issuance of ordinary shares | 891 | 333 |
Repurchase of ordinary shares | (2,728) | (1,964) |
Net intercompany loan borrowings (repayments) | 3,777 | 3,329 |
Intercompany dividend paid | 0 | |
Capital contribution received | 0 | 0 |
Other financing activities | 0 | 0 |
Net cash used in financing activities | (82) | (172) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Subsidiary Issuer | Reportable Legal Entities | Medtronic Senior Notes and Medtronic Luxco Senior Notes | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | (619) | (958) |
Investing Activities: | ||
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of businesses | 0 | |
Additions to property, plant, and equipment | (207) | (234) |
Purchases of investments | 0 | 0 |
Sales and maturities of investments | 76 | 0 |
Capital contribution paid | (47) | (59) |
Other investing activities | 0 | 0 |
Net cash (used in) provided by investing activities | (178) | (293) |
Financing Activities: | ||
Change in current debt obligations, net | 0 | 0 |
Issuance of long-term debt | 0 | 0 |
Payments on long-term debt | 0 | (3,000) |
Dividends to shareholders | 0 | 0 |
Issuance of ordinary shares | 0 | 0 |
Repurchase of ordinary shares | 0 | 0 |
Net intercompany loan borrowings (repayments) | 793 | 4,244 |
Capital contribution received | 0 | 0 |
Other financing activities | 0 | 0 |
Net cash used in financing activities | 793 | 1,244 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | (4) | (7) |
Cash and cash equivalents at beginning of period | 20 | 45 |
Cash and cash equivalents at end of period | 16 | 38 |
Subsidiary Issuer | Reportable Legal Entities | CIFSA Senior Notes | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | (62) | 978 |
Investing Activities: | ||
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of businesses | 0 | |
Additions to property, plant, and equipment | 0 | 0 |
Purchases of investments | 0 | 0 |
Sales and maturities of investments | 0 | 0 |
Capital contribution paid | (187) | (531) |
Other investing activities | 0 | 0 |
Net cash (used in) provided by investing activities | (187) | (531) |
Financing Activities: | ||
Change in current debt obligations, net | 0 | 0 |
Issuance of long-term debt | 0 | 0 |
Payments on long-term debt | 0 | (1,150) |
Dividends to shareholders | 0 | 0 |
Issuance of ordinary shares | 0 | 0 |
Repurchase of ordinary shares | 0 | 0 |
Net intercompany loan borrowings (repayments) | 249 | 670 |
Intercompany dividend paid | 0 | |
Capital contribution received | 0 | 0 |
Other financing activities | 0 | 0 |
Net cash used in financing activities | 249 | (480) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 0 | (33) |
Cash and cash equivalents at beginning of period | 0 | 33 |
Cash and cash equivalents at end of period | 0 | 0 |
Subsidiary Guarantors | Reportable Legal Entities | Medtronic Senior Notes and Medtronic Luxco Senior Notes | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 200 | 200 |
Investing Activities: | ||
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of businesses | 0 | |
Additions to property, plant, and equipment | 0 | 0 |
Purchases of investments | 0 | 0 |
Sales and maturities of investments | 0 | 0 |
Capital contribution paid | 0 | (4,200) |
Other investing activities | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | (4,200) |
Financing Activities: | ||
Change in current debt obligations, net | (696) | (397) |
Issuance of long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Dividends to shareholders | 0 | 0 |
Issuance of ordinary shares | 0 | 0 |
Repurchase of ordinary shares | 0 | 0 |
Net intercompany loan borrowings (repayments) | 814 | 4,453 |
Capital contribution received | 0 | 0 |
Other financing activities | 17 | 0 |
Net cash used in financing activities | 135 | 4,056 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 335 | 56 |
Cash and cash equivalents at beginning of period | 1 | 5 |
Cash and cash equivalents at end of period | 336 | 61 |
Subsidiary Guarantors | Reportable Legal Entities | CIFSA Senior Notes | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 219 | 210 |
Investing Activities: | ||
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of businesses | 0 | |
Additions to property, plant, and equipment | 0 | 0 |
Purchases of investments | 0 | 0 |
Sales and maturities of investments | 0 | 0 |
Capital contribution paid | 0 | (4,200) |
Other investing activities | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | (4,200) |
Financing Activities: | ||
Change in current debt obligations, net | (696) | (397) |
Issuance of long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Dividends to shareholders | 0 | 0 |
Issuance of ordinary shares | 0 | 0 |
Repurchase of ordinary shares | 0 | 0 |
Net intercompany loan borrowings (repayments) | 795 | 4,443 |
Intercompany dividend paid | 0 | |
Capital contribution received | 0 | 0 |
Other financing activities | 17 | 0 |
Net cash used in financing activities | 116 | 4,046 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 335 | 56 |
Cash and cash equivalents at beginning of period | 1 | 5 |
Cash and cash equivalents at end of period | 336 | 61 |
Subsidiary Non-guarantors | Reportable Legal Entities | Medtronic Senior Notes and Medtronic Luxco Senior Notes | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 5,239 | 4,232 |
Investing Activities: | ||
Acquisitions, net of cash acquired | (1,615) | (111) |
Proceeds from sale of businesses | 6,058 | |
Additions to property, plant, and equipment | (592) | (542) |
Purchases of investments | (1,987) | (2,479) |
Sales and maturities of investments | 4,083 | 3,060 |
Capital contribution paid | 0 | 0 |
Other investing activities | (3) | (5) |
Net cash (used in) provided by investing activities | (114) | 5,981 |
Financing Activities: | ||
Change in current debt obligations, net | 0 | 6 |
Issuance of long-term debt | 3 | 21 |
Payments on long-term debt | (29) | (1,167) |
Dividends to shareholders | 0 | 0 |
Issuance of ordinary shares | 0 | 0 |
Repurchase of ordinary shares | 0 | 0 |
Net intercompany loan borrowings (repayments) | (5,384) | (12,026) |
Capital contribution received | 65 | 4,259 |
Other financing activities | (7) | (88) |
Net cash used in financing activities | (5,352) | (8,995) |
Effect of exchange rate changes on cash and cash equivalents | (70) | 124 |
Net change in cash and cash equivalents | (297) | 1,342 |
Cash and cash equivalents at beginning of period | 3,648 | 4,917 |
Cash and cash equivalents at end of period | 3,351 | 6,259 |
Subsidiary Non-guarantors | Reportable Legal Entities | CIFSA Senior Notes | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 4,663 | 3,334 |
Investing Activities: | ||
Acquisitions, net of cash acquired | (1,615) | (111) |
Proceeds from sale of businesses | 6,058 | |
Additions to property, plant, and equipment | (799) | (776) |
Purchases of investments | (1,987) | (2,479) |
Sales and maturities of investments | 4,159 | 3,060 |
Capital contribution paid | 0 | 0 |
Other investing activities | (3) | (5) |
Net cash (used in) provided by investing activities | (245) | 5,747 |
Financing Activities: | ||
Change in current debt obligations, net | 0 | 6 |
Issuance of long-term debt | 3 | 21 |
Payments on long-term debt | (29) | (3,017) |
Dividends to shareholders | 0 | 0 |
Issuance of ordinary shares | 0 | 0 |
Repurchase of ordinary shares | 0 | 0 |
Net intercompany loan borrowings (repayments) | (4,821) | (8,442) |
Intercompany dividend paid | (1,048) | |
Capital contribution received | 205 | 4,731 |
Other financing activities | (7) | (88) |
Net cash used in financing activities | (4,649) | (7,837) |
Effect of exchange rate changes on cash and cash equivalents | (70) | 124 |
Net change in cash and cash equivalents | (301) | 1,368 |
Cash and cash equivalents at beginning of period | 3,668 | 4,929 |
Cash and cash equivalents at end of period | $ 3,367 | $ 6,297 |