Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2020 | Sep. 02, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36820 | |
Entity Registrant Name | Medtronic plc | |
Entity Incorporation, State or Country Code | L2 | |
Entity Tax Identification Number | 98-1183488 | |
Entity Address, Address Line One | 20 On Hatch, Lower Hatch Street | |
Entity Address, City or Town | Dublin 2 | |
Entity Address, Country | IE | |
Country Region | 353 | |
City Area Code | 1 | |
Local Phone Number | 438-1700 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Ordinary Shares Outstanding | 1,344,215,261 | |
Entity Central Index Key | 0001613103 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-30 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Entity Address, Postal Zip Code | D02 XH02 | |
Ordinary shares, par value $0.0001 per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Ordinary shares, par value $0.0001 per share | |
Trading Symbol | MDT | |
Security Exchange Name | NYSE | |
Floating Rate Notes due 2021 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Floating Rate Notes due 2021 | |
Trading Symbol | MDT/21 | |
Security Exchange Name | NYSE | |
0.000% Senior Notes due 2021 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.000% Senior Notes due 2021 | |
Trading Symbol | MDT/21A | |
Security Exchange Name | NYSE | |
0.000% Senior Notes due 2022 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.000% Senior Notes due 2022 | |
Trading Symbol | MDT/22B | |
Security Exchange Name | NYSE | |
0.375% Senior Notes due 2023 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.375% Senior Notes due 2023 | |
Trading Symbol | MDT/23B | |
Security Exchange Name | NYSE | |
0.25% Senior Notes due 2025 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.25% Senior Notes due 2025 | |
Trading Symbol | MDT/25 | |
Security Exchange Name | NYSE | |
1.125% Notes due 2027 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.125% Notes due 2027 | |
Trading Symbol | MDT/27 | |
Security Exchange Name | NYSE | |
1.625% Notes due 2031 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.625% Notes due 2031 | |
Trading Symbol | MDT/31 | |
Security Exchange Name | NYSE | |
1.00% Senior Notes due 2031 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.00% Senior Notes due 2031 | |
Trading Symbol | MDT/31A | |
Security Exchange Name | NYSE | |
2.250% Notes due 2039 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.250% Notes due 2039 | |
Trading Symbol | MDT/39A | |
Security Exchange Name | NYSE | |
1.50% Senior Notes due 2039 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.50% Senior Notes due 2039 | |
Trading Symbol | MDT/39B | |
Security Exchange Name | NYSE | |
1.75% Senior Notes due 2049 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.75% Senior Notes due 2049 | |
Trading Symbol | MDT/49 | |
Security Exchange Name | NYSE |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 6,507 | $ 7,493 |
Costs and expenses: | ||
Cost of products sold | 2,505 | 2,366 |
Research and development expense | 621 | 587 |
Selling, general, and administrative expense | 2,417 | 2,543 |
Amortization of intangible assets | 440 | 440 |
Restructuring charges, net | 53 | 47 |
Certain litigation charges, net | (88) | 47 |
Other operating income, net | (114) | (22) |
Operating profit | 673 | 1,485 |
Other non-operating income, net | (82) | (101) |
Interest expense | 171 | 609 |
Income before income taxes | 584 | 977 |
Income tax provision | 93 | 100 |
Net income | 491 | 877 |
Net income attributable to noncontrolling interests | (4) | (13) |
Net income attributable to Medtronic | $ 487 | $ 864 |
Basic earnings per share (usd per share) | $ 0.36 | $ 0.64 |
Diluted earnings per share (usd per share) | $ 0.36 | $ 0.64 |
Basic weighted average shares outstanding (shares) | 1,341.9 | 1,340.8 |
Diluted weighted average shares outstanding (shares) | 1,350 | 1,351.9 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 491 | $ 877 |
Other comprehensive income (loss), net of tax: | ||
Unrealized gain on investment securities | 125 | 56 |
Translation adjustment | 1,117 | 66 |
Net investment hedge | (1,112) | 99 |
Net change in retirement obligations | 3 | 13 |
Unrealized loss on cash flow hedges | (350) | (7) |
Other comprehensive (loss) income | (217) | 227 |
Comprehensive income including noncontrolling interests | 274 | 1,104 |
Comprehensive income attributable to noncontrolling interests | (9) | (13) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent, Total | $ 265 | $ 1,091 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jul. 31, 2020 | Apr. 24, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 6,499 | $ 4,140 |
Investments | 6,513 | 6,808 |
Accounts receivable, less allowances and credit losses of $276 and $208, respectively | 4,876 | 4,645 |
Inventories, net | 4,551 | 4,229 |
Other current assets | 2,070 | 2,209 |
Total current assets | 24,509 | 22,031 |
Property, plant, and equipment | 11,952 | 11,644 |
Accumulated depreciation | (7,070) | (6,816) |
Property, plant, and equipment, net | 4,882 | 4,828 |
Goodwill | 40,714 | 39,841 |
Other intangible assets, net | 18,670 | 19,063 |
Tax assets | 2,988 | 2,832 |
Other assets | 2,143 | 2,094 |
Total assets | 93,906 | 90,689 |
Current liabilities: | ||
Current debt obligations | 5,823 | 2,776 |
Accounts payable | 1,720 | 1,996 |
Accrued compensation | 1,815 | 2,099 |
Accrued income taxes | 390 | 502 |
Other accrued expenses | 3,338 | 2,993 |
Total current liabilities | 13,086 | 10,366 |
Long-term debt | 22,867 | 22,021 |
Accrued compensation and retirement benefits | 1,962 | 1,910 |
Accrued income taxes | 2,719 | 2,682 |
Deferred tax liabilities | 1,231 | 1,174 |
Other liabilities | 1,598 | 1,664 |
Total liabilities | 43,463 | 39,817 |
Commitments and contingencies (Note 16) | ||
Shareholders’ equity: | ||
Ordinary shares— par value $0.0001, 2.6 billion shares authorized, 1,343,318,623 and 1,341,074,724 shares issued and outstanding, respectively | 0 | 0 |
Additional paid-in capital | 26,261 | 26,165 |
Retained earnings | 27,817 | 28,132 |
Accumulated other comprehensive loss | (3,782) | (3,560) |
Total shareholders’ equity | 50,296 | 50,737 |
Noncontrolling interests | 147 | 135 |
Total equity | 50,443 | 50,872 |
Total liabilities and equity | $ 93,906 | $ 90,689 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jul. 31, 2020 | Apr. 24, 2020 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 276 | $ 208 |
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) | 1,343,318,623 | 1,341,074,724 |
Ordinary shares outstanding (shares) | 1,343,318,623 | 1,341,074,724 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Cumulative effect of change in accounting principle | Total Shareholders’ Equity | Total Shareholders’ EquityCumulative effect of change in accounting principle | Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative effect of change in accounting principle | Accumulated Other Comprehensive Loss | Noncontrolling Interests | |||
Beginning balance (shares) at Apr. 26, 2019 | 1,341,000,000 | ||||||||||||
Beginning balance at Apr. 26, 2019 | $ 50,212 | $ (33) | [1] | $ 50,091 | $ (33) | [1] | $ 0 | $ 26,532 | $ 26,270 | $ (33) | [1] | $ (2,711) | $ 121 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 877 | 864 | 864 | 13 | |||||||||
Other comprehensive (loss) income | 227 | 227 | 227 | ||||||||||
Dividends to shareholders | (724) | (724) | (724) | ||||||||||
Issuance of shares under stock purchase and award plans (shares) | 3,000,000 | ||||||||||||
Issuance of shares under stock purchase and award plans | 205 | 205 | 205 | ||||||||||
Repurchase of ordinary shares (shares) | (3,000,000) | ||||||||||||
Repurchase of ordinary shares | (328) | (328) | (328) | ||||||||||
Stock-based compensation | 61 | 61 | 61 | ||||||||||
Ending balance (shares) at Jul. 26, 2019 | 1,341,000,000 | ||||||||||||
Ending balance at Jul. 26, 2019 | $ 50,497 | 50,363 | $ 0 | 26,470 | 26,377 | (2,484) | 134 | ||||||
Beginning balance (shares) at Apr. 24, 2020 | 1,341,074,724 | 1,341,000,000 | |||||||||||
Beginning balance at Apr. 24, 2020 | $ 50,872 | $ (24) | [2] | 50,737 | $ (24) | [2] | $ 0 | 26,165 | 28,132 | $ (24) | [2] | (3,560) | 135 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 491 | 487 | 487 | 4 | |||||||||
Other comprehensive (loss) income | (217) | (222) | (222) | 5 | |||||||||
Dividends to shareholders | (778) | (778) | (778) | ||||||||||
Issuance of shares under stock purchase and award plans (shares) | 2,000,000 | ||||||||||||
Issuance of shares under stock purchase and award plans | 26 | 26 | 26 | ||||||||||
Stock-based compensation | 70 | 70 | 70 | ||||||||||
Changes to noncontrolling ownership interests | $ 3 | 3 | |||||||||||
Ending balance (shares) at Jul. 31, 2020 | 1,343,318,623 | 1,343,000,000 | |||||||||||
Ending balance at Jul. 31, 2020 | $ 50,443 | $ 50,296 | $ 0 | $ 26,261 | $ 27,817 | $ (3,782) | $ 147 | ||||||
[1] | The cumulative effect of change in accounting principle during the first quarter of fiscal year 2020 resulted from the adoption of accounting guidance that requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet. As a result of the adoption, the Company adjusted the opening balance of retained earnings for $33 million as of April 27, 2019. | ||||||||||||
[2] | See Note 2 to the consolidated financial statements for discussion regarding the adoption of accounting standards during the first quarter of fiscal year 2021. |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends to shareholders (usd per share) | $ 0.58 | $ 0.54 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Operating Activities: | ||
Net income | $ 491 | $ 877 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 669 | 657 |
Provision for doubtful accounts | 37 | 25 |
Deferred income taxes | 3 | 18 |
Stock-based compensation | 70 | 61 |
Loss on debt extinguishment | 0 | 406 |
Other, net | 68 | 58 |
Change in operating assets and liabilities, net of acquisitions and divestitures: | ||
Accounts receivable, net | (142) | 319 |
Inventories, net | (235) | (122) |
Accounts payable and accrued liabilities | (541) | (629) |
Other operating assets and liabilities | (142) | (160) |
Net cash provided by operating activities | 278 | 1,510 |
Investing Activities: | ||
Acquisitions, net of cash acquired | 0 | (145) |
Additions to property, plant, and equipment | (334) | (301) |
Purchases of investments | (2,045) | (1,669) |
Sales and maturities of investments | 2,403 | 1,569 |
Other investing activities | (16) | (5) |
Net cash provided by (used in) investing activities | 8 | (551) |
Financing Activities: | ||
Change in current debt obligations, net | (16) | 88 |
Proceeds from short-term borrowings (maturities greater than 90 days) | 2,789 | 0 |
Issuance of long-term debt | 0 | 5,567 |
Payments on long-term debt | (11) | (5,035) |
Dividends to shareholders | (778) | (724) |
Issuance of ordinary shares | 26 | 210 |
Repurchase of ordinary shares | 0 | (333) |
Other financing activities | (51) | (47) |
Net cash provided by (used in) financing activities | 1,959 | (274) |
Effect of exchange rate changes on cash and cash equivalents | 114 | 2 |
Net change in cash and cash equivalents | 2,359 | 687 |
Cash and cash equivalents at beginning of period | 4,140 | 4,393 |
Cash and cash equivalents at end of period | 6,499 | 5,080 |
Cash paid for: | ||
Income taxes | 72 | 198 |
Interest | $ 72 | $ 86 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 31, 2020 | |
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. 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 Covid-19 pandemic ("COVID-19" or the "pandemic") is having, and will likely continue to have, an adverse effect on our business, results of operations, financial condition, and cash flows, and its future impacts remain highly uncertain and unpredictable. The Company has considered the disruptions caused by COVID-19, including lower than forecasted sales and customer demand and macroeconomic factors, that may impact its estimates. The Company has assessed the potential impact of the pandemic on certain accounting matters including, but not limited to, the allowance for doubtful accounts, inventory reserves, return reserves, the valuation of goodwill, intangible assets, other long-lived assets, investments and contingent consideration, as of July 31, 2020 and through the date of this report. While there was not a material impact to the Company’s consolidated financial statements as of and for the quarter ended July 31, 2020, changes in the Company’s assessment about the length and severity of the pandemic, as well as other factors, could result in actual results differing from 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 eliminated in consolidation. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Jul. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Current Expected Credit Losses |
Revenue
Revenue | 3 Months Ended |
Jul. 31, 2020 | |
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 months ended July 31, 2020 and July 26, 2019: Three months ended (1) (in millions) July 31, 2020 July 26, 2019 Cardiac Rhythm & Heart Failure $ 1,247 $ 1,382 Coronary & Structural Heart 780 941 Aortic, Peripheral, & Venous 405 467 Cardiac & Vascular Group 2,433 2,790 Surgical Innovations 1,080 1,417 Respiratory, Gastrointestinal, & Renal 720 683 Minimally Invasive Therapies Group 1,801 2,100 Cranial & Spinal Technologies 944 1,050 Specialty Therapies 453 563 Neuromodulation 314 398 Restorative Therapies Group 1,712 2,012 Diabetes Group 562 592 Total $ 6,507 $ 7,493 (1) Revenue amounts have intentionally been rounded to the nearest million and, therefore, may not sum. During the first quarter of fiscal year 2021, the Company realigned the divisions within the Restorative Therapies Group to the following: Cranial & Spinal Technologies (includes Core Spine and Biologics, Enabling Technologies, and China Orthopedics), Specialty Therapies (includes ENT, Pelvic Health, and Neurovascular), and Neuromodulation (includes Pain Therapies, Brain Modulation, and Interventional). As a result, net sales for fiscal year 2020 have been recast to adjust for this realignment. The table below illustrates net sales by market geography for each segment for the three months ended July 31, 2020 and July 26, 2019: U.S. (1)(4) Non-U.S. Developed Markets (2)(4) Emerging Markets (3)(4) Three months ended Three months ended Three months ended (in millions) July 31, 2020 July 26, 2019 July 31, 2020 July 26, 2019 July 31, 2020 July 26, 2019 Cardiac & Vascular Group $ 1,206 $ 1,361 $ 853 $ 930 $ 374 $ 499 Minimally Invasive Therapies Group 722 913 719 791 359 396 Restorative Therapies Group 1,136 1,338 376 426 199 248 Diabetes Group 287 306 226 231 48 55 Total $ 3,351 $ 3,918 $ 2,175 $ 2,377 $ 981 $ 1,198 (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 within 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. (4) Revenue amounts have intentionally been rounded to the nearest million and, therefore, may not sum. The amount of revenue recognized is reduced by sales rebates and returns. Adjustments to rebates and returns reserves are recorded as increases or decreases to revenue. At July 31, 2020, $798 million of rebates were classified as other accrued expenses and $415 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheet. At April 24, 2020, $706 million of rebates were classified as other accrued expenses and $321 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheet. For the three months ended July 31, 2020 and July 26, 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 not material. Deferred Revenue and Remaining Performance Obligations The Company records a deferred revenue liability if a customer pays consideration, or the Company has the right to invoice, before the Company transfers a good or service to the customer. Deferred revenue at July 31, 2020 and April 24, 2020 was $317 million and $303 million, respectively. At July 31, 2020 and April 24, 2020, $227 million and $213 million, respectively, was included in other accrued expenses and $90 million was included in other liabilities . During the three months ended July 31, 2020, the Company recognized $103 million of revenue that was included in deferred revenue as of April 24, 2020. During the three months ended July 26, 2019, the Company recognized $98 million of revenue that was included in deferred revenue as of April 26, 2019. 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. At July 31, 2020, the estimated revenue expected to be recognized in future periods related to unsatisfied performance obligations for executed contracts with an original duration of one year or more was approximately $1.0 billion. The Company expects to recognize revenue on the majority of these remaining performance obligations over the next four years. |
Acquisitions
Acquisitions | 3 Months Ended |
Jul. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Fiscal Year 2021 The Company had no acquisitions that were accounted for as business combinations during the three months ended July 31, 2020. During the three months ended July 31, 2020, the Company recognized a gain of $132 million related to a change in amounts accrued for certain contingent liabilities for a recent acquisition. The benefit was recognized in other operating income, net in the consolidated statements of income as the purchase accounting was finalized in fiscal year 2020. Purchase price allocation adjustments during the first quarter of fiscal year 2021 were not significant. Fiscal Year 2020 The Company had acquisitions during the three months ended July 26, 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 consolidated results of the Company for the three months ended July 26, 2019. 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 value of net assets acquired in the first quarter of fiscal year 2020 was $206 million, consisting of $247 million of assets acquired and $41 million of liabilities assumed. Assets acquired were primarily comprised of $91 million of technology-based intangible assets and $26 million of customer-related intangible assets with estimated useful lives of 8 years, $40 million of inventory, and $65 million of goodwill. The goodwill is not deductible for tax purposes. The Company recognized $58 million of contingent consideration liabilities in connection with business combinations during the first quarter of fiscal year 2020, which are comprised of revenue milestone-based payments. Acquired In-Process Research & Development (IPR&D) IPR&D acquired outside of a business combination is expensed immediately. During the three months ended July 31, 2020, the Company acquired $10 million of IPR&D in connection with asset acquisitions, which was recognized in other operating income, net in the consolidated statements of income. During the three months ended July 26, 2019, the Company did not acquire any IPR&D in connection with asset acquisitions. Contingent Consideration Certain of the Company’s business combinations and intangible asset acquisitions 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 income, 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 July 31, 2020 and April 24, 2020 was $297 million and $280 million, respectively. At July 31, 2020, $225 million was recorded in other accrued expenses and $72 million was recorded in other liabilities in the consolidated balance sheets. At April 24, 2020, $112 million was recorded in other accrued expenses and $168 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 (in millions) July 31, 2020 July 26, 2019 Beginning balance $ 280 $ 222 Purchase price contingent consideration — 58 Payments (1) (14) Change in fair value 18 3 Ending balance $ 297 $ 269 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) July 31, 2020 Unobservable Input Range Weighted Average (1) Discount rate 14.0% - 32.4% 22.3% Revenue and other performance-based payments $116 Probability of payment 100% 100% Projected fiscal year of payment 2021 - 2027 2024 Discount rate 5.5% 5.5% Product development and other milestone-based payments $181 Probability of payment 50% - 100% 90.5% Projected fiscal year of payment 2021 - 2027 2024 (1) Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. For projected fiscal year of payment, the amount represents the median of the inputs and is not a weighted average. |
Restructuring
Restructuring | 3 Months Ended |
Jul. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring 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 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 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 months ended July 31, 2020, the Company recognized charges of $79 million, and incurred accrual adjustments of $2 million related to contract terminations being settled for less than originally estimated. For the three months ended July 31, 2020, charges included $27 million recognized within cost of products sold and $47 million recognized within selling, general, and administrative expense in the consolidated statements of income. For the three months ended July 26, 2019, the Company recognized charges of $136 million. Additionally, the Company incurred accrual adjustments of $12 million for the three months ended July 26, 2019 related to certain employees identified for termination finding other positions within Medtronic. For the three months ended July 26, 2019, charges included $35 million recognized within cost of products sold and $42 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 three months ended July 31, 2020: (in millions) Employee Termination Benefits Associated Costs (1) Other Costs Total April 24, 2020 $ 89 $ 19 $ 4 $ 112 Charges 6 73 — 79 Cash payments (26) (72) (2) (100) Accrual adjustments — — (2) (2) July 31, 2020 $ 69 $ 20 $ — $ 89 (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. Simplification In the first quarter of fiscal year 2021, the Company initiated the Simplification restructuring program, designed to make the Company a more nimble and competitive organization focused on accelerating innovation, enhancing the customer experience, driving revenue growth, and winning market share, while at the same time more efficiently and effectively leveraging the Enterprise scale. This new operating model will simplify the Company's organizational structure and accelerate decision-making and execution. Primary activities of the restructuring program will include reorganizing the Group structure to create highly focused, accountable, and empowered Operating Units (OUs), consolidating Operations at the Enterprise level, establishing Technology Development Centers in areas where the Company has deep core technology competencies to be leveraged by multiple OUs, and forming dedicated sales organizations that leverage the Company's scale but move with the same agility as smaller, local competitors. The Company estimates that, in connection with its Simplification restructuring program, it will recognize pre-tax exit and disposal costs and other costs across all segments of approximately $400 million to $450 million, the majority of which are expected to be incurred by the end of fiscal year 2022. Approximately three quarters of the estimated charges are related to employee termination benefits. The remaining 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 months ended July 31, 2020, the Company recognized charges of $51 million, which included $1 million recognized within selling, general, and administrative expense in the consolidated statements of income. The following table summarizes the activity related to the Simplification restructuring program for the three months ended July 31, 2020: (in millions) Employee Termination Benefits Associated Costs (1) Total April 24, 2020 $ — $ — $ — Charges 50 1 51 Cash payments — (1) (1) July 31, 2020 $ 50 $ — $ 50 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Jul. 31, 2020 | |
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. 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 July 31, 2020 and April 24, 2020: July 31, 2020 Valuation Balance Sheet Classification (in millions) Cost Unrealized Unrealized Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 518 $ 46 $ — $ 564 $ 564 $ — Level 2: Corporate debt securities 3,859 139 (39) 3,959 3,959 — U.S. government and agency securities 779 2 — 781 781 — Mortgage-backed securities 669 28 (22) 675 675 — Non-U.S. government and agency securities 36 2 — 38 38 — Other asset-backed securities 502 4 (10) 496 496 — Total Level 2 5,845 175 (71) 5,949 5,949 — Level 3: Auction rate securities 36 — (1) 35 — 35 Total available-for-sale debt securities $ 6,399 $ 221 $ (72) $ 6,548 $ 6,513 $ 35 April 24, 2020 Valuation Balance Sheet Classification (in millions) Cost Unrealized Unrealized Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 542 $ 47 $ — $ 589 $ 589 $ — Level 2: Corporate debt securities 4,285 66 (90) 4,261 4,261 — U.S. government and agency securities 746 1 — 747 747 — Mortgage-backed securities 705 20 (28) 697 697 — Non-U.S. government and agency securities 34 — — 34 34 — Other asset-backed securities 499 1 (20) 480 480 — Total Level 2 6,269 88 (138) 6,219 6,219 — Level 3: Auction rate securities 36 — (3) 33 — 33 Total available-for-sale debt securities $ 6,847 $ 135 $ (141) $ 6,841 $ 6,808 $ 33 The amortized cost of debt securities excludes accrued interest, which is reported in other current assets in the consolidated balance sheets. 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 July 31, 2020 and April 24, 2020: July 31, 2020 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized Corporate debt securities $ 128 $ (1) $ 821 $ (38) Mortgage-backed securities 26 (3) 113 (19) Other asset-backed securities 3 — 340 (10) Auction rate securities 11 (1) — — Total $ 168 $ (5) $ 1,274 $ (67) April 24, 2020 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized Corporate debt securities $ 1,368 $ (2) $ 2,893 $ (88) Mortgage-backed securities 35 (1) 663 (27) Other asset-backed securities 17 — 463 (20) Auction rate securities 33 (3) — — Total $ 1,453 $ (6) $ 4,019 $ (135) 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. There were no transfers into or out of Level 3 during the three months ended July 31, 2020 and July 26, 2019. 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 significant gains or losses recognized in earnings or other comprehensive income for available-for-sale securities classified as Level 3 during the three months ended July 31, 2020 and July 26, 2019. Activity related to the Company’s debt securities portfolio is as follows: Three months ended (in millions) July 31, 2020 July 26, 2019 Proceeds from sales $ 2,403 $ 1,567 Gross realized gains 5 4 Gross realized losses (6) (8) 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 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 July 31, 2020 and April 24, 2020, there were no debt securities in a credit loss position. No available-for-sale securities were sold for significantly less than carrying value during the three months ended July 31, 2020 and July 26, 2019. The July 31, 2020 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) July 31, 2020 Due in one year or less $ 1,764 Due after one year through five years 3,049 Due after five years through ten years 1,677 Due after ten years 58 Total $ 6,548 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. Equity securities with readily determinable fair values are included in 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 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 July 31, 2020 and April 24, 2020, which are classified as other assets in the consolidated balance sheets: (in millions) July 31, 2020 April 24, 2020 Investments with readily determinable fair value (marketable equity securities) $ 27 $ 18 Investments without readily determinable fair values 471 391 Equity method and other investments 72 71 Total equity and other investments $ 570 $ 480 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, net in the consolidated statements of income. Three months ended (in millions) July 31, 2020 July 26, 2019 Proceeds from sales $ — $ 2 Gross gains 12 — Impairment losses recognized (2) (1) |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Jul. 31, 2020 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements Commercial Paper The Company maintains commercial paper programs that allows the Company to issue U.S. dollar or Euro-denominated unsecured commercial paper notes. The aggregate amount outstanding at any time under the commercial paper programs may not exceed the equivalent of $3.5 billion. No commercial paper was outstanding at both July 31, 2020 and April 24, 2020. The issuance of commercial paper reduces the amount of credit available under the Company’s existing Credit Facility, as defined below. Line of Credit The Company has a $3.5 billion five Interest rates on advances on the Credit Facility are determined by a pricing matrix, based on the Company’s long-term debt ratings, assigned by Standard & Poor’s Ratings Services and Moody’s Investors Service. Facility fees are payable on the Credit Facility and are determined in the same manner as the interest rates. The agreement also contains customary covenants, all of which the Company was in compliance with at July 31, 2020. Debt Obligations The Company's debt obligations consisted of the following: (in millions) Maturity by July 31, 2020 April 24, 2020 Current debt obligations 2021 $ 5,823 $ 2,776 Long-term debt 3.150 percent seven 2022 1,534 1,534 3.200 percent ten 2023 650 650 0.375 percent four 2023 1,762 1,631 2.750 percent ten 2023 530 530 0.000 percent four 2023 881 815 2.950 percent ten 2024 310 310 3.625 percent ten 2024 432 432 3.500 percent ten 2025 2,700 2,700 0.250 percent seven 2026 1,175 1,087 1.125 percent eight 2027 1,762 1,631 3.350 percent ten 2027 368 368 1.625 percent twelve 2031 1,175 1,087 1.000 percent thirteen 2032 1,175 1,087 4.375 percent twenty 2035 1,932 1,932 6.550 percent thirty 2038 253 253 2.250 percent twenty 2039 1,175 1,087 6.500 percent thirty 2039 158 158 5.550 percent thirty 2040 224 224 1.500 percent twenty 2040 1,175 1,087 4.500 percent thirty 2042 105 105 4.000 percent thirty 2043 305 305 4.625 percent thirty 2044 127 127 4.625 percent thirty 2045 1,813 1,813 1.750 percent thirty 2050 1,175 1,087 Bank borrowings 2022 39 55 Debt discount, net 2021 - 2020 (14) (15) Finance lease obligations 2022 - 2035 45 45 Deferred financing costs 2021 - 2050 (99) (104) Long-term debt $ 22,867 $ 22,021 Senior Notes The Company has outstanding unsecured senior obligations, described as senior notes in the tables above (collectively, the Senior Notes). The Senior Notes rank equally with all other unsecured and unsubordinated indebtedness of the Company. The indentures under which the Senior Notes were issued contain customary covenants, all of which the Company remained in compliance with at July 31, 2020. In June 2019, Medtronic Luxco issued six tranches of Euro-denominated Senior Notes with an aggregate principal of €5.0 billion, with maturities ranging from fiscal year 2021 to fiscal year 2050, resulting in cash proceeds of approximately $5.6 billion, net of discounts and issuance costs. The Company used the net proceeds of the offering to fund the cash tender offer and early redemption, described below. The Euro-denominated debt is designated as a net investment hedge of certain of the Company's European operations. Refer to Note 8 for additional information regarding the net investment hedge. The Company completed the cash tender offer of $4.6 billion of Medtronic Inc., CIFSA, and Medtronic Luxco Senior Notes for $5.0 billion of total consideration in July 2019. The Company recognized a loss on debt extinguishment of $413 million during the first quarter of fiscal year 2020, which primarily included cash premiums and accelerated amortization of deferred financing costs and debt discounts and premiums. The loss was recognized in interest expense in the consolidated statement of income for the three months ended July 26, 2019. Term Loan Agreements On May 12, 2020, Medtronic Luxco entered into a term loan agreement (Loan Agreement) by and among Medtronic Luxco, Medtronic plc, Medtronic, Inc., and Mizuho Bank, Ltd. as administrative agent and as lender. The Loan Agreement provides an unsecured term loan in an aggregate principal amount of up to ¥300 billion, or approximately $2.8 billion, with a term of six months, which may be extended for an additional six months at Medtronic Luxco’s option. On May 13, 2020, Medtronic Luxco borrowed the entire amount of the term loan under the Loan Agreement. Borrowings under the Loan Agreement will bear interest at the TIBOR Rate (as defined in the Loan Agreement) plus a margin of 0.50% per annum. Medtronic plc and Medtronic, Inc. have guaranteed the obligations of Medtronic Luxco under the Loan Agreement. The Japanese Yen-denominated debt is designated as a net investment hedge of certain of our Japanese operations. Financial Instruments Not Measured at Fair Value At July 31, 2020, the estimated fair value of the Company’s Senior Notes was $28.9 billion compared to a principal value of $25.5 billion. At April 24, 2020, the estimated fair value was $27.1 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 | 3 Months Ended |
Jul. 31, 2020 | |
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, including currency exchange rate derivative contracts and interest rate derivative instruments, to manage the impact of currency exchange and interest rate changes on earnings and cash flows. In addition, the Company uses cross currency interest rate swaps to manage currency risk related to certain debt. In order to minimize earnings and cash flow volatility resulting from currency exchange rate changes, the Company enters into derivative instruments, principally forward currency exchange rate contracts. These contracts are designed to hedge anticipated foreign currency transactions and changes in the value of specific assets and liabilities. At inception of the contract, the derivative is designated as either a freestanding derivative or a cash flow hedge. Currencies of our derivative instruments include the Euro, Japanese Yen, Chinese Yuan, and others. 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 $17.4 billion and $11.9 billion at July 31, 2020 and April 24, 2020, respectively. The Company also uses derivative and non-derivative instruments to manage the impact of currency exchange rate changes on net investments in foreign currency-denominated operations. 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 primarily used to offset the Company’s exposure to the change in value of specific foreign-currency-denominated assets and liabilities, and to offset variability of cash flows associated with forecasted transactions denominated in foreign currencies. The gross notional amount of the Company's freestanding currency exchange rate contracts outstanding at July 31, 2020 and April 24, 2020 was $10.3 billion and $4.9 billion, respectively. The Company's freestanding currency exchange rate contracts are not designated as hedges, and therefore, changes in the value of these contracts are recognized in earnings, thereby offsetting the current earnings effect of the related change in value of foreign-currency-denominated assets, liabilities, and cash flows. The Company also uses total return swaps to hedge the liability of a non-qualified, deferred compensation plan. The gross notional amount of the Company's total return swaps outstanding at July 31, 2020 and April 24, 2020 was $197 million and $181 million, 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 cash flows related to the Company's freestanding derivative contracts are reported as operating activities in the consolidated statements of cash flows. 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 months ended July 31, 2020 and July 26, 2019 were as follows: Three months ended (in millions) Classification July 31, 2020 July 26, 2019 Currency exchange rate contracts Other operating income, net $ 127 $ 6 Total return swaps Other operating income, net (27) (5) Total $ 100 $ 1 Cash Flow Hedges 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. The gross notional amount of these contracts, designated as cash flow hedges, outstanding at July 31, 2020 and April 24, 2020 was $7.1 billion and $7.0 billion, respectively, and will mature within the subsequent three-year period. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive loss . The gain or loss on the derivative instrument is reclassified into earnings and is included in other operating income, net in the consolidated statements of income in the same period or periods during which the hedged transaction affects earnings. Amounts excluded from the measurement of hedge effectiveness are recognized in earnings in the current period. The cash flows related to all of the Company's derivative instruments designated as cash flow hedges are reported as operating activities in the consolidated statements of cash flows. No components of the hedge contracts were excluded in the measurement of hedge effectiveness, and no forward contracts designated as cash flow hedges were derecognized or discontinued during the three months ended July 31, 2020 and July 26, 2019. The amount of the (gains) losses recognized in accumulated other comprehensive loss (AOCI) related to the currency exchange rate contract derivative instruments designated as cash flow hedges for the three months ended July 31, 2020 and July 26, 2019 were as follows: Three months ended (in millions) July 31, 2020 July 26, 2019 Currency exchange rate contracts $ 389 $ (27) The amount of the (gains) losses recognized in the consolidated statements of income related to derivative instruments designated as cash flow hedges for the three months ended July 31, 2020 and July 26, 2019 were as follows: Three months ended July 31, 2020 July 26, 2019 (in millions) Other operating income, net Other operating income, net Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of cash flow hedges are recorded $ (114) $ (22) Currency exchange rate contracts designated as cash flow hedges: Amount of gain reclassified from AOCI into income (53) (57) 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 gains or losses on forward starting interest rate derivative instruments that are designated and qualify as cash flow hedges are reported as a component of accumulated other comprehensive loss . Beginning in the period in which the planned debt issuance occurs and the related derivative instruments are terminated, the gains or losses are then reclassified into interest expense over the term of the related debt. For the three months ended July 31, 2020 and July 26, 2019, the reclassifications of net (gains) losses on forward starting interest rate derivative instruments from accumulated other comprehensive loss to interest expense were not significant. At July 31, 2020 and April 24, 2020, the Company had $84 million in after-tax net unrealized losses and $266 million in after-tax net unrealized gains, respectively, associated with cash flow hedging instruments recorded in accumulated other comprehensive loss . The Company expects that $4 million of after-tax net unrealized losses at July 31, 2020 will be recognized in the consolidated statements of income over the next 12 months. Net Investment Hedges The Company has designated Euro-denominated and Japanese Yen-denominated debt as net investment hedges of certain of its European and Japanese operations to manage the exposure to currency and exchange rate movements for foreign currency-denominated net investments in foreign operations. At July 31, 2020, the Company had €12.0 billion, or $14.1 billion, of outstanding Euro-denominated debt designated as a hedge of its net investment in certain of its European operations, and ¥300 billion, or $2.9 billion, of outstanding Yen-denominated debt designated as a hedge of its net investment in certain of its Japanese operations. The Euro-denominated debt will mature in fiscal years 2021 through 2050 and the Yen-denominated debt will mature in fiscal year 2021, with the option to extend to fiscal year 2022 at the Company’s discretion. Additionally, during the first quarter of fiscal year 2020, the Company entered into and settled forward currency exchange rate contracts to manage the exposure to exchange rate movements in anticipation of the issuance of Euro-denominated senior notes. Certain of these forward currency exchange rate contracts were designated as a net investment hedge of certain of the Company's European operations. These contracts matured in conjunction with the issuance of Euro-denominated debt in the first quarter of fiscal year 2020. For instruments that are designated and qualify as net investment hedges, the gains or losses are reported as a component of accumulated other comprehensive loss . The gains or losses are reclassified into earnings upon a liquidation event or deconsolidation of the foreign subsidiary. Amounts excluded from the assessment of effectiveness are recognized in other operating income, net . The cash flows related to the Company's derivative instruments designated as net investment hedges are reported as investing activities in the consolidated statements of cash flows. At July 31, 2020 and April 24, 2020 the Company had $876 million in after-tax unrealized losses and $236 million in after-tax unrealized gains, respectively, associated with net investment hedges recorded in accumulated other comprehensive loss . The Company does not expect any of the after-tax unrealized gains at July 31, 2020 to be recognized in the consolidated statements of income over the next 12 months. The Company did not recognize any gains or losses during the three months ended July 31, 2020 or July 26, 2019 on instruments that no longer qualify as net investment hedges. The amount and classifications of the (gains) losses recognized in the consolidated statements of income for the portion of the net investment hedges excluded from the measurement of hedge effectiveness were as follows: Three months ended (in millions) Classification July 31, 2020 July 26, 2019 Net investment hedges Other operating income, net $ — $ (7) The amount of the (gains) losses recognized in AOCI related to instruments designated as net investment hedges for the three months ended July 31, 2020 and July 26, 2019 were as follows: Three months ended (in millions) July 31, 2020 July 26, 2019 Net investment hedges $ 1,112 $ (99) Balance Sheet Presentation The following tables summarize the balance sheet classification and fair value of derivative instruments included in the consolidated balance sheets at July 31, 2020 and April 24, 2020. 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. July 31, 2020 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 $ 59 Other accrued expenses $ 60 Currency exchange rate contracts Other assets 8 Other liabilities 57 Total derivatives designated as hedging instruments 67 117 Derivatives not designated as hedging instruments Currency exchange rate contracts Other current assets 70 Other accrued expenses 75 Total return swaps Other current assets 1 Other accrued expenses — Cross-currency interest rate contracts Other current assets 2 Other accrued expenses — Total derivatives not designated as hedging instruments 73 75 Total derivatives $ 140 $ 192 April 24, 2020 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 $ 271 Other accrued expenses $ 2 Currency exchange rate contracts Other assets 103 Other liabilities 2 Total derivatives designated as hedging instruments 374 4 Derivatives not designated as hedging instruments Currency exchange rate contracts Other current assets 25 Other accrued expenses 13 Total return swaps Other current assets — Other accrued expenses 25 Cross-currency interest rate contracts Other current assets 3 Other accrued expenses — Total derivatives not designated as hedging instruments 28 38 Total derivatives $ 402 $ 42 The following table provides information by level for the derivative assets and liabilities that are measured at fair value on a recurring basis. July 31, 2020 April 24, 2020 (in millions) Level 1 Level 2 Level 1 Level 2 Derivative assets $ 137 $ 3 $ 399 $ 3 Derivative liabilities 192 — 17 25 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 provide 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. July 31, 2020 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 137 $ (86) $ — $ 51 Cross-currency interest rate contracts 2 — — 2 Total return swaps 1 — — 1 140 (86) — 54 Derivative liabilities: Currency exchange rate contracts (192) 86 6 (100) Total $ (52) $ — $ 6 $ (46) April 24, 2020 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 399 $ (17) $ (48) $ 334 Cross-currency interest rate contracts 3 — — 3 402 (17) (48) 337 Derivative liabilities: Currency exchange rate contracts (17) 17 — — Total return swaps (25) — — (25) (42) 17 — (25) Total $ 360 $ — $ (48) $ 312 |
Inventories
Inventories | 3 Months Ended |
Jul. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory balances, net of reserves, were as follows: (in millions) July 31, 2020 April 24, 2020 Finished goods $ 3,024 $ 2,874 Work in-process 653 608 Raw materials 874 747 Total $ 4,551 $ 4,229 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Jul. 31, 2020 | |
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 24, 2020 $ 6,831 $ 20,176 $ 10,920 $ 1,914 $ 39,841 Purchase accounting adjustments — — 3 — 3 Currency translation and other 83 693 93 1 870 July 31, 2020 $ 6,914 $ 20,869 $ 11,016 $ 1,915 $ 40,714 The Company assesses goodwill for impairment annually as of the first day of 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 not recognize any goodwill impairment during the three months ended July 31, 2020 or July 26, 2019. Intangible Assets The following table presents the gross carrying amount and accumulated amortization of intangible assets: July 31, 2020 April 24, 2020 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 17,000 $ (5,321) $ 16,963 $ (5,065) Purchased technology and patents 10,868 (4,567) 10,742 (4,354) Trademarks and tradenames 465 (236) 464 (232) Other 75 (55) 75 (53) Total $ 28,408 $ (10,179) $ 28,244 $ (9,704) Indefinite-lived: IPR&D $ 441 $ — $ 523 $ — The Company assesses definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of an intangible asset (asset group) may not be recoverable. When events or changes in circumstances indicate that the carrying value of an intangible asset may not be recoverable, the Company calculates the excess of an intangible asset's carrying value over its undiscounted future cash flows. If the carrying value is not recoverable, an impairment loss is recognized based on the amount by which the carrying value exceeds the fair value. The inputs used in the fair value analysis fall within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value. The Company did not recognize any definite-lived intangible asset charges during the three months ended July 31, 2020 or July 26, 2019 . 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 value may be impaired. The Company did not recognize any indefinite-lived intangible asset impairments during the three months ended July 31, 2020 or July 26, 2019. 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 clinical trials, delays or failures to obtain required market clearances, other failures to achieve a commercially viable product, or the discontinuation of certain projects, and as a result, may recognize impairment losses in the future. Amortization Expense Intangible asset amortization expense for the three months ended July 31, 2020 and July 26, 2019 was $440 million. Estimated aggregate amortization expense by fiscal year based on the carrying value of definite-lived intangible assets at July 31, 2020, 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 2021 $ 1,319 2022 1,718 2023 1,654 2024 1,624 2025 1,599 2026 1,587 |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate for the three months ended July 31, 2020 was 15.9 percent, as compared to 10.2 percent for the three months ended July 26, 2019. The increase in the effective tax rate for the three months ended July 31, 2020, as compared to the corresponding period in the prior fiscal year, was primarily due to the impact of certain tax adjustments, debt tender premium and other charges in the prior year, and year-over-year changes in operational results by jurisdiction. Certain Tax Adjustments During the three months ended July 31, 2020, the net cost from certain tax adjustments of $4 million, recognized in income tax provision in the consolidated statements of income, included the following: • A benefit of $3 million associated with the finalization of an intercompany sale of intellectual property and the establishment of a deferred tax asset. The cumulative amount of deferred tax benefit previously recognized from intercompany intellectual property transactions and recorded as Certain Tax Adjustments is $1.5 billion. The corresponding deferred tax assets will be amortized over a period of approximately 20 years. • A cost of $7 million associated with the amortization of the previously established deferred tax assets from intercompany intellectual property transactions. During the three months ended July 26, 2019, the net benefit from certain tax adjustments of $30 million, recognized in income tax provision in the consolidated statements of income, included the following: • A net benefit of $30 million related to U.S. Treasury’s issuance of certain Final Regulations associated with U.S. Tax Reform. The primary impact of these regulations resulted in the Company re-establishing its permanently reinvested assertion on certain foreign earnings and reversing the previously accrued tax liability. This benefit was partially offset by additional tax associated with a previously executed internal reorganization of certain foreign subsidiaries. At both July 31, 2020 and April 24, 2020, the Company's gross unrecognized tax benefits were $1.9 billion. In addition, the Company had accrued gross interest and penalties of $241 million at July 31, 2020. If all the Company’s unrecognized tax benefits were recognized, approximately $1.8 billion would impact the Company’s effective tax rate. At July 31, 2020 and April 24, 2020, the amount of the Company's gross unrecognized tax benefits recorded as a noncurrent liability within accrued income taxes on the consolidated balance sheets was $934 million and $911 million, respectively. 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 16 to the consolidated financial statements for additional information regarding the status of current tax audits and proceedings. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jul. 31, 2020 | |
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 per share: Three months ended (in millions, except per share data) July 31, 2020 July 26, 2019 Numerator: Net income attributable to ordinary shareholders $ 487 $ 864 Denominator: Basic – weighted average shares outstanding 1,341.9 1,340.8 Effect of dilutive securities: Employee stock options 4.7 6.9 Employee restricted stock units 2.7 3.5 Other 0.7 0.7 Diluted – weighted average shares outstanding 1,350.0 1,351.9 Basic earnings per share $ 0.36 $ 0.64 Diluted earnings per share $ 0.36 $ 0.64 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jul. 31, 2020 | |
Share-based Payment Arrangement [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 months ended July 31, 2020 and July 26, 2019: Three months ended (in millions) July 31, 2020 July 26, 2019 Stock options $ 8 $ 9 Restricted stock 50 42 Employee stock purchase plan 12 10 Total stock-based compensation expense $ 70 $ 61 Cost of products sold $ 7 $ 6 Research and development expense 8 7 Selling, general, and administrative expense 55 48 Total stock-based compensation expense 70 61 Income tax benefits (11) (10) Total stock-based compensation expense, net of tax $ 59 $ 51 |
Retirement Benefit Plans
Retirement Benefit Plans | 3 Months Ended |
Jul. 31, 2020 | |
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 months ended July 31, 2020 and July 26, 2019: U.S. Non-U.S. Three months ended Three months ended (in millions) July 31, 2020 July 26, 2019 July 31, 2020 July 26, 2019 Service cost $ 27 $ 26 $ 17 $ 15 Interest cost 27 32 6 7 Expected return on plan assets (61) (56) (14) (15) Amortization of net actuarial loss 18 14 6 3 Net periodic benefit cost $ 11 $ 16 $ 15 $ 10 Components of net periodic benefit cost other than the service component are recognized in other non-operating income, net in the consolidated statements of income. Subsequent to July 31, 2020, as part of the Simplification restructuring program, the Company offered certain eligible U.S. employees voluntary early retirement packages. The acceptance of this offer for eligible employees will result in a charge of approximately $100 million, consisting primarily of incremental pension and post-retirement costs, which will be recognized in earnings in the second quarter of fiscal year 2021. See Note 5 for additional information on the Simplification restructuring program. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jul. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table provides changes in AOCI, net of tax, and by component: (in millions) Unrealized (Loss) Gain on Investment Securities Cumulative Translation Adjustments Net Investment Hedges Net Change in Retirement Obligations Unrealized Gain (Loss) on Cash Flow Hedges Total Accumulated Other Comprehensive (Loss) Income April 24, 2020 $ — $ (2,210) $ 236 $ (1,852) $ 266 $ (3,560) Other comprehensive income (loss) before reclassifications 125 1,112 (1,112) (12) (309) (196) Reclassifications — — — 15 (41) (26) Other comprehensive income (loss) 125 1,112 (1,112) 3 (350) (222) July 31, 2020 $ 125 $ (1,098) $ (876) $ (1,849) $ (84) $ (3,782) (in millions) Unrealized (Loss) Gain on Investment Securities Cumulative Translation Adjustment Net Investment Hedges Net Change in Retirement Obligations Unrealized Gain (Loss) on Cash Flow Hedges Total Accumulated Other Comprehensive (Loss) Income April 26, 2019 $ (45) $ (1,383) $ (169) $ (1,308) $ 194 $ (2,711) Other comprehensive income before reclassifications 51 66 99 — 26 242 Reclassifications 5 — — 13 (33) (15) Other comprehensive income (loss) 56 66 99 13 (7) 227 July 26, 2019 $ 11 $ (1,317) $ (70) $ (1,295) $ 187 $ (2,484) The income tax on gains and losses on investment securities in other comprehensive income before reclassifications during the three months ended July 31, 2020 and July 26, 2019 was an expense of $30 million and a benefit of $1 million, respectively. There was no income tax on gains and losses on investment securities reclassified from AOCI for the three months ended July 31, 2020. During the three months ended July 26, 2019, realized gains and losses on investment securities reclassified from AOCI were reduced by income taxes of $1 million. When realized, gains and losses on investment securities reclassified from AOCI are recognized within other non-operating income, net . Refer to Note 6 to the consolidated financial statements for additional information. The income tax on cumulative translation adjustment for the three months ended July 31, 2020, was an expense of $4 million. For the three months ended July 26, 2019, there was no income tax on cumulative translation adjustment. During the three months ended July 31, 2020 and July 26, 2019, there were no tax impacts on net investment hedges. Refer to Note 8 to the consolidated financial statements for additional information. The net change in retirement obligations in other comprehensive income includes amortization of net actuarial losses included in net periodic benefit cost. During the three months ended July 31, 2020, the net change in retirement obligations in other comprehensive income before reclassifications resulted in an income tax benefit of $5 million. During the three months ended July 26, 2019, there was no income tax impact on the net change in retirement obligations in other comprehensive income before reclassifications. During the three months ended July 31, 2020 and July 26, 2019, the gains and losses on defined benefit and pension items reclassified from AOCI were reduced by income taxes of $4 million and $3 million, respectively. When realized, net gains and losses on defined benefit and pension items reclassified from AOCI are recognized within other non-operating income, net . Refer to Note 14 to the consolidated financial statements for additional information. The income tax on unrealized gains and losses on cash flow hedges in other comprehensive income before reclassifications during the three months ended July 31, 2020 and July 26, 2019 was a benefit of $80 million and an expense of $1 million, respectively. During the three months ended July 31, 2020 and July 26, 2019, gains and losses on cash flow hedges reclassified from AOCI were reduced by income taxes of $11 million. When realized, gains and losses on currency exchange rate contracts reclassified from AOCI are recognized within other operating income, net, and gains and losses on forward starting interest rate derivatives reclassified from AOCI are recognized within interest expense. Refer to Note 8 to the consolidated financial statements for additional information. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 31, 2020 | |
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, 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. The Company classifies litigation charges and gains related to significant legal matters as certain litigation charges. During the three months ended July 31, 2020, the Company recognized a net benefit of $88 million primarily related to favorable settlements for significant legal matters. During the three months ended July 26, 2019, the Company recognized $47 million of certain litigation charges. At July 31, 2020 and April 24, 2020, accrued litigation was approximately $0.4 billion and $0.5 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 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 16,200 claimants have asserted or may assert claims involving products manufactured by Covidien’s subsidiaries. As of August 5, 2020, the Company had reached agreements to settle approximately 15,900 of these claims. The Company's accrued expenses for this matter are included within accrued litigation as discussed above. Hernia Mesh Litigation During fiscal year 2020, plaintiffs filed lawsuits against certain subsidiaries of the Company in U.S. state and federal courts alleging personal injury from hernia mesh products sold by those subsidiaries. The majority of the pending cases are in Massachusetts state court, where they have been consolidated before a single judge. Certain plaintiffs law firms have advised the Company that they may file additional cases in the future. The pending lawsuits relate to hernia mesh products that have not been subject to recalls, withdrawals or other adverse regulatory action. The Company has not recorded an expense related to damages in connection with these matters because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company is unable to reasonably estimate the range of loss, if any, that may result from these matters. 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's accrued expenses for this matter are included within accrued litigation as discussed above. 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 2015, the plaintiffs filed an appeal, and, in January 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 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. In April 2020, the District Court issued an order and opinion denying the plaintiffs' motion for class certification. 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. 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 that 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 fiscal year 2021. 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 provided information in response to these requests and fully cooperated with the inquiry. The Department of Justice recently notified the Company that it does not intend to pursue the matter further. The Company has not recognized an expense in connection with this matter, 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 this matter. Income Taxes In March 2009, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2005 and 2006. Medtronic, Inc. reached agreement with the IRS on some, but not all matters related to these fiscal years. The remaining unresolved issue for fiscal years 2005 and 2006 relates to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico, which is one of the Company's key manufacturing sites. The U.S. Tax Court reviewed this dispute, and on June 9, 2016, issued its opinion with respect to the allocation of income between the parties for fiscal years 2005 and 2006. The U.S. Tax Court generally rejected the IRS’s position, but also made certain modifications to the Medtronic, Inc. tax returns as filed. On April 21, 2017, the IRS filed their Notice of Appeal to the U.S. Court of Appeals 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. The U.S. Tax Court scheduled for April 2020 was postponed due to the challenges of COVID-19. The new trial date has not been re-scheduled. 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. The statute of limitations for Covidien's 2016 U.S. federal income tax return lapsed during the third quarter of fiscal year 2020. 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 11 for additional discussion of income taxes. Guarantees 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, and/or cash flows. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Jul. 31, 2020 | |
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 operating profit. Segment operating profit represents income before income taxes, excluding interest expense, amortization of intangible assets, centralized distribution costs, non-operating income or expense items, 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 24, 2020. 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: Segment Operating Profit Three months ended (in millions) July 31, 2020 July 26, 2019 Cardiac and Vascular Group $ 759 $ 1,055 Minimally Invasive Therapies Group 455 771 Restorative Therapies Group 523 793 Diabetes Group 103 149 Segment operating profit 1,840 2,768 Interest expense (171) (609) Other non-operating income, net 82 101 Amortization of intangible assets (440) (440) Corporate (365) (307) Centralized distribution costs (399) (345) Restructuring and associated costs (128) (124) Acquisition-related items 105 (19) Certain litigation charges, net 88 (47) IPR&D charges (10) — Debt tender premium and other charges — 7 Medical device regulations (18) (8) Income before income taxes $ 584 $ 977 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 months ended July 31, 2020 and July 26, 2019 for the Company's country of domicile, countries with significant concentrations, and all other countries: Three months ended (in millions) July 31, 2020 July 26, 2019 Ireland $ 24 $ 20 United States 3,351 3,918 Rest of world 3,132 3,555 Total other countries, excluding Ireland 6,483 7,473 Total $ 6,507 $ 7,493 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jul. 31, 2020 | |
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. 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 eliminated in consolidation. |
Fiscal Period | The Company’s fiscal years 2021, 2020, and 2019 will end or ended on April 30, 2021, April 24, 2020, and April 26, 2019, respectively. Fiscal year 2021 is a 53-week year, with the extra week occurring in the first fiscal month of the first quarter. |
New Accounting Pronouncements | Recently Adopted Current Expected Credit Losses |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The table below illustrates net sales by segment and division for the three months ended July 31, 2020 and July 26, 2019: Three months ended (1) (in millions) July 31, 2020 July 26, 2019 Cardiac Rhythm & Heart Failure $ 1,247 $ 1,382 Coronary & Structural Heart 780 941 Aortic, Peripheral, & Venous 405 467 Cardiac & Vascular Group 2,433 2,790 Surgical Innovations 1,080 1,417 Respiratory, Gastrointestinal, & Renal 720 683 Minimally Invasive Therapies Group 1,801 2,100 Cranial & Spinal Technologies 944 1,050 Specialty Therapies 453 563 Neuromodulation 314 398 Restorative Therapies Group 1,712 2,012 Diabetes Group 562 592 Total $ 6,507 $ 7,493 (1) Revenue amounts have intentionally been rounded to the nearest million and, therefore, may not sum. During the first quarter of fiscal year 2021, the Company realigned the divisions within the Restorative Therapies Group to the following: Cranial & Spinal Technologies (includes Core Spine and Biologics, Enabling Technologies, and China Orthopedics), Specialty Therapies (includes ENT, Pelvic Health, and Neurovascular), and Neuromodulation (includes Pain Therapies, Brain Modulation, and Interventional). As a result, net sales for fiscal year 2020 have been recast to adjust for this realignment. The table below illustrates net sales by market geography for each segment for the three months ended July 31, 2020 and July 26, 2019: U.S. (1)(4) Non-U.S. Developed Markets (2)(4) Emerging Markets (3)(4) Three months ended Three months ended Three months ended (in millions) July 31, 2020 July 26, 2019 July 31, 2020 July 26, 2019 July 31, 2020 July 26, 2019 Cardiac & Vascular Group $ 1,206 $ 1,361 $ 853 $ 930 $ 374 $ 499 Minimally Invasive Therapies Group 722 913 719 791 359 396 Restorative Therapies Group 1,136 1,338 376 426 199 248 Diabetes Group 287 306 226 231 48 55 Total $ 3,351 $ 3,918 $ 2,175 $ 2,377 $ 981 $ 1,198 (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 within 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) | 3 Months Ended |
Jul. 31, 2020 | |
Business Combinations [Abstract] | |
Reconciliation of Beginning and Ending Balances of Contingent Consideration | The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Three months ended (in millions) July 31, 2020 July 26, 2019 Beginning balance $ 280 $ 222 Purchase price contingent consideration — 58 Payments (1) (14) Change in fair value 18 3 Ending balance $ 297 $ 269 |
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) July 31, 2020 Unobservable Input Range Weighted Average (1) Discount rate 14.0% - 32.4% 22.3% Revenue and other performance-based payments $116 Probability of payment 100% 100% Projected fiscal year of payment 2021 - 2027 2024 Discount rate 5.5% 5.5% Product development and other milestone-based payments $181 Probability of payment 50% - 100% 90.5% Projected fiscal year of payment 2021 - 2027 2024 (1) Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. For projected fiscal year of payment, the amount represents the median of the inputs and is not a weighted average. |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the activity related to the Enterprise Excellence restructuring program for the three months ended July 31, 2020: (in millions) Employee Termination Benefits Associated Costs (1) Other Costs Total April 24, 2020 $ 89 $ 19 $ 4 $ 112 Charges 6 73 — 79 Cash payments (26) (72) (2) (100) Accrual adjustments — — (2) (2) July 31, 2020 $ 69 $ 20 $ — $ 89 (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. The following table summarizes the activity related to the Simplification restructuring program for the three months ended July 31, 2020: (in millions) Employee Termination Benefits Associated Costs (1) Total April 24, 2020 $ — $ — $ — Charges 50 1 51 Cash payments — (1) (1) July 31, 2020 $ 50 $ — $ 50 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
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 July 31, 2020 and April 24, 2020: July 31, 2020 Valuation Balance Sheet Classification (in millions) Cost Unrealized Unrealized Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 518 $ 46 $ — $ 564 $ 564 $ — Level 2: Corporate debt securities 3,859 139 (39) 3,959 3,959 — U.S. government and agency securities 779 2 — 781 781 — Mortgage-backed securities 669 28 (22) 675 675 — Non-U.S. government and agency securities 36 2 — 38 38 — Other asset-backed securities 502 4 (10) 496 496 — Total Level 2 5,845 175 (71) 5,949 5,949 — Level 3: Auction rate securities 36 — (1) 35 — 35 Total available-for-sale debt securities $ 6,399 $ 221 $ (72) $ 6,548 $ 6,513 $ 35 April 24, 2020 Valuation Balance Sheet Classification (in millions) Cost Unrealized Unrealized Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 542 $ 47 $ — $ 589 $ 589 $ — Level 2: Corporate debt securities 4,285 66 (90) 4,261 4,261 — U.S. government and agency securities 746 1 — 747 747 — Mortgage-backed securities 705 20 (28) 697 697 — Non-U.S. government and agency securities 34 — — 34 34 — Other asset-backed securities 499 1 (20) 480 480 — Total Level 2 6,269 88 (138) 6,219 6,219 — Level 3: Auction rate securities 36 — (3) 33 — 33 Total available-for-sale debt securities $ 6,847 $ 135 $ (141) $ 6,841 $ 6,808 $ 33 |
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 July 31, 2020 and April 24, 2020: July 31, 2020 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized Corporate debt securities $ 128 $ (1) $ 821 $ (38) Mortgage-backed securities 26 (3) 113 (19) Other asset-backed securities 3 — 340 (10) Auction rate securities 11 (1) — — Total $ 168 $ (5) $ 1,274 $ (67) April 24, 2020 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized Corporate debt securities $ 1,368 $ (2) $ 2,893 $ (88) Mortgage-backed securities 35 (1) 663 (27) Other asset-backed securities 17 — 463 (20) Auction rate securities 33 (3) — — Total $ 1,453 $ (6) $ 4,019 $ (135) |
Activity Related to the Company's Debt Securities Portfolio | Activity related to the Company’s debt securities portfolio is as follows: Three months ended (in millions) July 31, 2020 July 26, 2019 Proceeds from sales $ 2,403 $ 1,567 Gross realized gains 5 4 Gross realized losses (6) (8) |
Available-for-sale Debt Securities Contractual Maturities | The July 31, 2020 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) July 31, 2020 Due in one year or less $ 1,764 Due after one year through five years 3,049 Due after five years through ten years 1,677 Due after ten years 58 Total $ 6,548 |
Summary of Equity and Other Investments | The following table summarizes the Company's equity and other investments at July 31, 2020 and April 24, 2020, which are classified as other assets in the consolidated balance sheets: (in millions) July 31, 2020 April 24, 2020 Investments with readily determinable fair value (marketable equity securities) $ 27 $ 18 Investments without readily determinable fair values 471 391 Equity method and other investments 72 71 Total equity and other investments $ 570 $ 480 |
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, net in the consolidated statements of income. Three months ended (in millions) July 31, 2020 July 26, 2019 Proceeds from sales $ — $ 2 Gross gains 12 — Impairment losses recognized (2) (1) |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | The Company's debt obligations consisted of the following: (in millions) Maturity by July 31, 2020 April 24, 2020 Current debt obligations 2021 $ 5,823 $ 2,776 Long-term debt 3.150 percent seven 2022 1,534 1,534 3.200 percent ten 2023 650 650 0.375 percent four 2023 1,762 1,631 2.750 percent ten 2023 530 530 0.000 percent four 2023 881 815 2.950 percent ten 2024 310 310 3.625 percent ten 2024 432 432 3.500 percent ten 2025 2,700 2,700 0.250 percent seven 2026 1,175 1,087 1.125 percent eight 2027 1,762 1,631 3.350 percent ten 2027 368 368 1.625 percent twelve 2031 1,175 1,087 1.000 percent thirteen 2032 1,175 1,087 4.375 percent twenty 2035 1,932 1,932 6.550 percent thirty 2038 253 253 2.250 percent twenty 2039 1,175 1,087 6.500 percent thirty 2039 158 158 5.550 percent thirty 2040 224 224 1.500 percent twenty 2040 1,175 1,087 4.500 percent thirty 2042 105 105 4.000 percent thirty 2043 305 305 4.625 percent thirty 2044 127 127 4.625 percent thirty 2045 1,813 1,813 1.750 percent thirty 2050 1,175 1,087 Bank borrowings 2022 39 55 Debt discount, net 2021 - 2020 (14) (15) Finance lease obligations 2022 - 2035 45 45 Deferred financing costs 2021 - 2050 (99) (104) Long-term debt $ 22,867 $ 22,021 |
Derivatives and Currency Exch_2
Derivatives and Currency Exchange Risk Management (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
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 months ended July 31, 2020 and July 26, 2019 were as follows: Three months ended (in millions) Classification July 31, 2020 July 26, 2019 Currency exchange rate contracts Other operating income, net $ 127 $ 6 Total return swaps Other operating income, net (27) (5) Total $ 100 $ 1 |
Amounts of (Gains) Losses Recognized in AOCI | The amount of the (gains) losses recognized in accumulated other comprehensive loss (AOCI) related to the currency exchange rate contract derivative instruments designated as cash flow hedges for the three months ended July 31, 2020 and July 26, 2019 were as follows: Three months ended (in millions) July 31, 2020 July 26, 2019 Currency exchange rate contracts $ 389 $ (27) |
Amount and Location of (Gains) Losses in Statements of Income | The amount of the (gains) losses recognized in the consolidated statements of income related to derivative instruments designated as cash flow hedges for the three months ended July 31, 2020 and July 26, 2019 were as follows: Three months ended July 31, 2020 July 26, 2019 (in millions) Other operating income, net Other operating income, net Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of cash flow hedges are recorded $ (114) $ (22) Currency exchange rate contracts designated as cash flow hedges: Amount of gain reclassified from AOCI into income (53) (57) |
Amount and Location of (Gains) Losses in Statements of Income, Derivative Instruments Designated as Net Investment Hedges | The amount and classifications of the (gains) losses recognized in the consolidated statements of income for the portion of the net investment hedges excluded from the measurement of hedge effectiveness were as follows: Three months ended (in millions) Classification July 31, 2020 July 26, 2019 Net investment hedges Other operating income, net $ — $ (7) |
Amounts of (Gains) Losses Recognized in AOCI for Net Investment Hedges | The amount of the (gains) losses recognized in AOCI related to instruments designated as net investment hedges for the three months ended July 31, 2020 and July 26, 2019 were as follows: Three months ended (in millions) July 31, 2020 July 26, 2019 Net investment hedges $ 1,112 $ (99) |
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 July 31, 2020 and April 24, 2020. 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. July 31, 2020 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 $ 59 Other accrued expenses $ 60 Currency exchange rate contracts Other assets 8 Other liabilities 57 Total derivatives designated as hedging instruments 67 117 Derivatives not designated as hedging instruments Currency exchange rate contracts Other current assets 70 Other accrued expenses 75 Total return swaps Other current assets 1 Other accrued expenses — Cross-currency interest rate contracts Other current assets 2 Other accrued expenses — Total derivatives not designated as hedging instruments 73 75 Total derivatives $ 140 $ 192 April 24, 2020 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 $ 271 Other accrued expenses $ 2 Currency exchange rate contracts Other assets 103 Other liabilities 2 Total derivatives designated as hedging instruments 374 4 Derivatives not designated as hedging instruments Currency exchange rate contracts Other current assets 25 Other accrued expenses 13 Total return swaps Other current assets — Other accrued expenses 25 Cross-currency interest rate contracts Other current assets 3 Other accrued expenses — Total derivatives not designated as hedging instruments 28 38 Total derivatives $ 402 $ 42 |
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. July 31, 2020 April 24, 2020 (in millions) Level 1 Level 2 Level 1 Level 2 Derivative assets $ 137 $ 3 $ 399 $ 3 Derivative liabilities 192 — 17 25 |
Offsetting Assets | The following tables provide 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. July 31, 2020 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 137 $ (86) $ — $ 51 Cross-currency interest rate contracts 2 — — 2 Total return swaps 1 — — 1 140 (86) — 54 Derivative liabilities: Currency exchange rate contracts (192) 86 6 (100) Total $ (52) $ — $ 6 $ (46) April 24, 2020 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 399 $ (17) $ (48) $ 334 Cross-currency interest rate contracts 3 — — 3 402 (17) (48) 337 Derivative liabilities: Currency exchange rate contracts (17) 17 — — Total return swaps (25) — — (25) (42) 17 — (25) Total $ 360 $ — $ (48) $ 312 |
Offsetting Liabilities | The following tables provide 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. July 31, 2020 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 137 $ (86) $ — $ 51 Cross-currency interest rate contracts 2 — — 2 Total return swaps 1 — — 1 140 (86) — 54 Derivative liabilities: Currency exchange rate contracts (192) 86 6 (100) Total $ (52) $ — $ 6 $ (46) April 24, 2020 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 399 $ (17) $ (48) $ 334 Cross-currency interest rate contracts 3 — — 3 402 (17) (48) 337 Derivative liabilities: Currency exchange rate contracts (17) 17 — — Total return swaps (25) — — (25) (42) 17 — (25) Total $ 360 $ — $ (48) $ 312 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory Balances | Inventory balances, net of reserves, were as follows: (in millions) July 31, 2020 April 24, 2020 Finished goods $ 3,024 $ 2,874 Work in-process 653 608 Raw materials 874 747 Total $ 4,551 $ 4,229 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
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 24, 2020 $ 6,831 $ 20,176 $ 10,920 $ 1,914 $ 39,841 Purchase accounting adjustments — — 3 — 3 Currency translation and other 83 693 93 1 870 July 31, 2020 $ 6,914 $ 20,869 $ 11,016 $ 1,915 $ 40,714 |
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: July 31, 2020 April 24, 2020 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 17,000 $ (5,321) $ 16,963 $ (5,065) Purchased technology and patents 10,868 (4,567) 10,742 (4,354) Trademarks and tradenames 465 (236) 464 (232) Other 75 (55) 75 (53) Total $ 28,408 $ (10,179) $ 28,244 $ (9,704) Indefinite-lived: IPR&D $ 441 $ — $ 523 $ — |
Gross Carrying Amount of Indefinite-Lived Intangible Assets | The following table presents the gross carrying amount and accumulated amortization of intangible assets: July 31, 2020 April 24, 2020 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 17,000 $ (5,321) $ 16,963 $ (5,065) Purchased technology and patents 10,868 (4,567) 10,742 (4,354) Trademarks and tradenames 465 (236) 464 (232) Other 75 (55) 75 (53) Total $ 28,408 $ (10,179) $ 28,244 $ (9,704) Indefinite-lived: IPR&D $ 441 $ — $ 523 $ — |
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 July 31, 2020, 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 2021 $ 1,319 2022 1,718 2023 1,654 2024 1,624 2025 1,599 2026 1,587 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The table below sets forth the computation of basic and diluted earnings per share: Three months ended (in millions, except per share data) July 31, 2020 July 26, 2019 Numerator: Net income attributable to ordinary shareholders $ 487 $ 864 Denominator: Basic – weighted average shares outstanding 1,341.9 1,340.8 Effect of dilutive securities: Employee stock options 4.7 6.9 Employee restricted stock units 2.7 3.5 Other 0.7 0.7 Diluted – weighted average shares outstanding 1,350.0 1,351.9 Basic earnings per share $ 0.36 $ 0.64 Diluted earnings per share $ 0.36 $ 0.64 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Share-based Payment Arrangement [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 months ended July 31, 2020 and July 26, 2019: Three months ended (in millions) July 31, 2020 July 26, 2019 Stock options $ 8 $ 9 Restricted stock 50 42 Employee stock purchase plan 12 10 Total stock-based compensation expense $ 70 $ 61 Cost of products sold $ 7 $ 6 Research and development expense 8 7 Selling, general, and administrative expense 55 48 Total stock-based compensation expense 70 61 Income tax benefits (11) (10) Total stock-based compensation expense, net of tax $ 59 $ 51 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
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 months ended July 31, 2020 and July 26, 2019: U.S. Non-U.S. Three months ended Three months ended (in millions) July 31, 2020 July 26, 2019 July 31, 2020 July 26, 2019 Service cost $ 27 $ 26 $ 17 $ 15 Interest cost 27 32 6 7 Expected return on plan assets (61) (56) (14) (15) Amortization of net actuarial loss 18 14 6 3 Net periodic benefit cost $ 11 $ 16 $ 15 $ 10 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
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 Adjustments Net Investment Hedges Net Change in Retirement Obligations Unrealized Gain (Loss) on Cash Flow Hedges Total Accumulated Other Comprehensive (Loss) Income April 24, 2020 $ — $ (2,210) $ 236 $ (1,852) $ 266 $ (3,560) Other comprehensive income (loss) before reclassifications 125 1,112 (1,112) (12) (309) (196) Reclassifications — — — 15 (41) (26) Other comprehensive income (loss) 125 1,112 (1,112) 3 (350) (222) July 31, 2020 $ 125 $ (1,098) $ (876) $ (1,849) $ (84) $ (3,782) (in millions) Unrealized (Loss) Gain on Investment Securities Cumulative Translation Adjustment Net Investment Hedges Net Change in Retirement Obligations Unrealized Gain (Loss) on Cash Flow Hedges Total Accumulated Other Comprehensive (Loss) Income April 26, 2019 $ (45) $ (1,383) $ (169) $ (1,308) $ 194 $ (2,711) Other comprehensive income before reclassifications 51 66 99 — 26 242 Reclassifications 5 — — 13 (33) (15) Other comprehensive income (loss) 56 66 99 13 (7) 227 July 26, 2019 $ 11 $ (1,317) $ (70) $ (1,295) $ 187 $ (2,484) |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Jul. 31, 2020 | |
Segment Reporting [Abstract] | |
Income From Operations Before Income Taxes by Reportable Segment and Reconciliation to Consolidated | The following tables present reconciliations of financial information from the segments to the applicable line items in the Company's consolidated financial statements: Segment Operating Profit Three months ended (in millions) July 31, 2020 July 26, 2019 Cardiac and Vascular Group $ 759 $ 1,055 Minimally Invasive Therapies Group 455 771 Restorative Therapies Group 523 793 Diabetes Group 103 149 Segment operating profit 1,840 2,768 Interest expense (171) (609) Other non-operating income, net 82 101 Amortization of intangible assets (440) (440) Corporate (365) (307) Centralized distribution costs (399) (345) Restructuring and associated costs (128) (124) Acquisition-related items 105 (19) Certain litigation charges, net 88 (47) IPR&D charges (10) — Debt tender premium and other charges — 7 Medical device regulations (18) (8) Income before income taxes $ 584 $ 977 |
Net Sales to External Customers by Geography | The following table presents net sales for the three months ended July 31, 2020 and July 26, 2019 for the Company's country of domicile, countries with significant concentrations, and all other countries: Three months ended (in millions) July 31, 2020 July 26, 2019 Ireland $ 24 $ 20 United States 3,351 3,918 Rest of world 3,132 3,555 Total other countries, excluding Ireland 6,483 7,473 Total $ 6,507 $ 7,493 |
Revenue - Disaggregation of Net
Revenue - Disaggregation of Net Sales by Segment and Division (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 6,507 | $ 7,493 |
Cardiac & Vascular Group | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,433 | 2,790 |
Cardiac & Vascular Group | Cardiac Rhythm & Heart Failure | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,247 | 1,382 |
Cardiac & Vascular Group | Coronary & Structural Heart | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 780 | 941 |
Cardiac & Vascular Group | Aortic, Peripheral, & Venous | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 405 | 467 |
Minimally Invasive Therapies Group | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,801 | 2,100 |
Minimally Invasive Therapies Group | Surgical Innovations | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,080 | 1,417 |
Minimally Invasive Therapies Group | Respiratory, Gastrointestinal, & Renal | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 720 | 683 |
Restorative Therapies Group | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,712 | 2,012 |
Restorative Therapies Group | Cranial & Spinal Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 944 | 1,050 |
Restorative Therapies Group | Specialty Therapies | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 453 | 563 |
Restorative Therapies Group | Neuromodulation | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 314 | 398 |
Diabetes Group | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 562 | $ 592 |
Revenue - Disaggregation of N_2
Revenue - Disaggregation of Net Sales by Market Geography for Each Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 6,507 | $ 7,493 |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,351 | 3,918 |
Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,175 | 2,377 |
Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 981 | 1,198 |
Cardiac & Vascular Group | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,433 | 2,790 |
Cardiac & Vascular Group | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,206 | 1,361 |
Cardiac & Vascular Group | Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 853 | 930 |
Cardiac & Vascular Group | Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 374 | 499 |
Minimally Invasive Therapies Group | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,801 | 2,100 |
Minimally Invasive Therapies Group | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 722 | 913 |
Minimally Invasive Therapies Group | Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 719 | 791 |
Minimally Invasive Therapies Group | Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 359 | 396 |
Restorative Therapies Group | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,712 | 2,012 |
Restorative Therapies Group | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,136 | 1,338 |
Restorative Therapies Group | Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 376 | 426 |
Restorative Therapies Group | Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 199 | 248 |
Diabetes Group | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 562 | 592 |
Diabetes Group | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 287 | 306 |
Diabetes Group | Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 226 | 231 |
Diabetes Group | Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 48 | $ 55 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 31, 2020 | Jul. 26, 2019 | Apr. 24, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 317 | $ 303 | |
Revenue recognized that was previously included in deferred revenue | 103 | $ 98 | |
Estimated revenue expected to be recognized in future periods related to unsatisfied performance obligations | $ 1,000 | ||
Period over which remaining performance obligations are expected to be recognized as revenue | four years | ||
Other accrued expenses | |||
Disaggregation of Revenue [Line Items] | |||
Rebate obligations | $ 798 | 706 | |
Deferred revenue | 227 | 213 | |
Reduction of accounts receivable | |||
Disaggregation of Revenue [Line Items] | |||
Rebate obligations | 415 | 321 | |
Other liabilities | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 90 | $ 90 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) | 3 Months Ended | |||
Jul. 31, 2020 | Jul. 26, 2019 | Apr. 24, 2020 | Apr. 26, 2019 | |
Business Acquisition [Line Items] | ||||
Gain related to change in amounts accrued for certain contingent liabilities for recent acquisition | $ 132,000,000 | |||
Goodwill | 40,714,000,000 | $ 39,841,000,000 | ||
Purchase price contingent consideration | 0 | $ 58,000,000 | ||
Contingent consideration liabilities | 297,000,000 | 269,000,000 | 280,000,000 | $ 222,000,000 |
Other accrued expenses | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration liabilities | 225,000,000 | 112,000,000 | ||
Other liabilities | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration liabilities | 72,000,000 | $ 168,000,000 | ||
IPR&D | ||||
Business Acquisition [Line Items] | ||||
In-process research and development acquired in connection with asset acquisition | $ 10,000,000 | 0 | ||
All Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Net assets acquired | 206,000,000 | |||
Total assets acquired | 247,000,000 | |||
Total liabilities assumed | 41,000,000 | |||
Inventory | 40,000,000 | |||
Goodwill | 65,000,000 | |||
Purchase price contingent consideration | 58,000,000 | |||
All Business Acquisitions | Technology-Based Intangible Assets | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 91,000,000 | |||
Estimated useful life | 8 years | |||
All Business Acquisitions | Customer-Related Intangible Assets | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 26,000,000 | |||
Estimated useful life | 8 years |
Acquisitions - Reconciliation o
Acquisitions - Reconciliation of Beginning and Ending Balances of Contingent Consideration (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments [Roll Forward] | ||
Beginning balance | $ 280 | $ 222 |
Purchase price contingent consideration | 0 | 58 |
Payments | (1) | (14) |
Change in fair value | 18 | 3 |
Ending balance | $ 297 | $ 269 |
Acquisitions - Fair Value Measu
Acquisitions - Fair Value Measurement, Contingent Consideration, Significant Unobservable Inputs (Details) $ in Millions | Jul. 31, 2020USD ($) | Apr. 24, 2020USD ($) | Jul. 26, 2019USD ($) | Apr. 26, 2019USD ($) |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Contingent consideration, fair value | $ 297 | $ 280 | $ 269 | $ 222 |
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 | $ 116 | |||
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 | 0.140 | |||
Revenue and other performance-based payments | Maximum | Recurring | Level 3 | Discount rate | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.324 | |||
Revenue and other performance-based payments | Weighted Average | Recurring | Level 3 | Discount rate | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.223 | |||
Revenue and other performance-based payments | Weighted Average | Recurring | Level 3 | Probability of payment | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 1 | |||
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 | $ 181 | |||
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 | 0.50 | |||
Product development and other milestone-based payments | Maximum | Recurring | Level 3 | Probability of payment | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 1 | |||
Product development and other milestone-based payments | Weighted Average | Recurring | Level 3 | Discount rate | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.055 | |||
Product development and other milestone-based payments | Weighted Average | Recurring | Level 3 | Probability of payment | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.905 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Enterprise Excellence | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges | $ 79 | $ 136 |
Accrual adjustments | 2 | 12 |
Enterprise Excellence | Cost of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges | 27 | 35 |
Enterprise Excellence | Selling, general, and administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges | 47 | $ 42 |
Enterprise Excellence | Minimum | Pre-tax exit and disposal costs and other | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected cost | 1,600 | |
Enterprise Excellence | Maximum | Pre-tax exit and disposal costs and other | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected cost | 1,800 | |
Simplification | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges | 51 | |
Simplification | Selling, general, and administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Charges | 1 | |
Simplification | Minimum | Pre-tax exit and disposal costs and other | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected cost | 400 | |
Simplification | Maximum | Pre-tax exit and disposal costs and other | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected cost | $ 450 |
Restructuring - Termination Lia
Restructuring - Termination Liability and Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Enterprise Excellence | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 112 | |
Charges | 79 | $ 136 |
Cash payments | (100) | |
Accrual adjustments | (2) | $ (12) |
Ending balance | 89 | |
Enterprise Excellence | Employee Termination Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 89 | |
Charges | 6 | |
Cash payments | (26) | |
Accrual adjustments | 0 | |
Ending balance | 69 | |
Enterprise Excellence | Associated Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 19 | |
Charges | 73 | |
Cash payments | (72) | |
Accrual adjustments | 0 | |
Ending balance | 20 | |
Enterprise Excellence | Other Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 4 | |
Charges | 0 | |
Cash payments | (2) | |
Accrual adjustments | (2) | |
Ending balance | 0 | |
Simplification | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | |
Charges | 51 | |
Cash payments | (1) | |
Ending balance | 50 | |
Simplification | Employee Termination Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | |
Charges | 50 | |
Cash payments | 0 | |
Ending balance | 50 | |
Simplification | Associated Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | |
Charges | 1 | |
Cash payments | (1) | |
Ending balance | $ 0 |
Financial Instruments - Investm
Financial Instruments - Investments by Category and Related Balance Sheet Classification (Details) - USD ($) $ in Millions | Jul. 31, 2020 | Apr. 24, 2020 |
Schedule of Investments [Line Items] | ||
Cost | $ 6,399 | $ 6,847 |
Unrealized Gains | 221 | 135 |
Unrealized Losses | (72) | (141) |
Fair Value | 6,548 | 6,841 |
Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 6,513 | 6,808 |
Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 35 | 33 |
Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 5,845 | 6,269 |
Unrealized Gains | 175 | 88 |
Unrealized Losses | (71) | (138) |
Fair Value | 5,949 | 6,219 |
Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 5,949 | 6,219 |
Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Corporate debt securities | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 3,859 | 4,285 |
Unrealized Gains | 139 | 66 |
Unrealized Losses | (39) | (90) |
Fair Value | 3,959 | 4,261 |
Corporate debt securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 3,959 | 4,261 |
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 | 518 | 542 |
Unrealized Gains | 46 | 47 |
Unrealized Losses | 0 | 0 |
Fair Value | 564 | 589 |
U.S. government and agency securities | Level 1 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 564 | 589 |
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 | 779 | 746 |
Unrealized Gains | 2 | 1 |
Unrealized Losses | 0 | 0 |
Fair Value | 781 | 747 |
U.S. government and agency securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 781 | 747 |
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 | 669 | 705 |
Unrealized Gains | 28 | 20 |
Unrealized Losses | (22) | (28) |
Fair Value | 675 | 697 |
Mortgage-backed securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 675 | 697 |
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 | 36 | 34 |
Unrealized Gains | 2 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 38 | 34 |
Non-U.S. government and agency securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 38 | 34 |
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 | 502 | 499 |
Unrealized Gains | 4 | 1 |
Unrealized Losses | (10) | (20) |
Fair Value | 496 | 480 |
Other asset-backed securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 496 | 480 |
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 | 36 | 36 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (3) |
Fair Value | 35 | 33 |
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 | $ 35 | $ 33 |
Financial Instruments - Availab
Financial Instruments - Available-For-Sale Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions | Jul. 31, 2020 | Apr. 24, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | $ 168 | $ 1,453 |
Less than 12 months, Unrealized Losses | (5) | (6) |
More than 12 months, Fair Value | 1,274 | 4,019 |
More than 12 months, Unrealized Losses | (67) | (135) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 128 | 1,368 |
Less than 12 months, Unrealized Losses | (1) | (2) |
More than 12 months, Fair Value | 821 | 2,893 |
More than 12 months, Unrealized Losses | (38) | (88) |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 26 | 35 |
Less than 12 months, Unrealized Losses | (3) | (1) |
More than 12 months, Fair Value | 113 | 663 |
More than 12 months, Unrealized Losses | (19) | (27) |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 3 | 17 |
Less than 12 months, Unrealized Losses | 0 | 0 |
More than 12 months, Fair Value | 340 | 463 |
More than 12 months, Unrealized Losses | (10) | (20) |
Auction rate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Fair Value | 11 | 33 |
Less than 12 months, Unrealized Losses | (1) | (3) |
More than 12 months, Fair Value | 0 | 0 |
More than 12 months, Unrealized Losses | $ 0 | $ 0 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | ||
Jul. 31, 2020 | Jul. 26, 2019 | Apr. 24, 2020 | |
Gain (Loss) on Securities [Line Items] | |||
Debt securities in credit loss position | $ 0 | $ 0 | |
Reductions for available-for-sale securities sold | 0 | $ 0 | |
Equity Securities and Other Investments | |||
Gain (Loss) on Securities [Line Items] | |||
Net gains (losses) recognized | 12,000,000 | 0 | |
Net realized gains (losses) on equity and other investments sold during the period | 0 | ||
Net unrealized gains (losses) on equity and other investments still held | $ 12,000,000 | $ 0 |
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 | ||
Jul. 31, 2020 | Jul. 26, 2019 | Apr. 24, 2020 | |
Activities Related to Debt Securities Portfolio | |||
Proceeds from sales | $ 2,403 | $ 1,567 | |
Gross realized gains | 5 | 4 | |
Gross realized losses | (6) | $ (8) | |
AFS Debt Maturities | |||
Due in one year or less | 1,764 | ||
Due after one year through five years | 3,049 | ||
Due after five years through ten years | 1,677 | ||
Due after ten years | 58 | ||
Fair Value | $ 6,548 | $ 6,841 |
Financial Instruments - Summary
Financial Instruments - Summary of Equity and Other Investments (Details) - Other Assets - USD ($) $ in Millions | Jul. 31, 2020 | Apr. 24, 2020 |
Schedule of Equity Method Investments [Line Items] | ||
Investments with readily determinable fair value (marketable equity securities) | $ 27 | $ 18 |
Investments without readily determinable fair values | 471 | 391 |
Equity method and other investments | 72 | 71 |
Total equity and other investments | $ 570 | $ 480 |
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 | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Marketable Securities [Line Items] | ||
Proceeds from sales | $ 2,403 | $ 1,569 |
Equity and Other Investments | ||
Marketable Securities [Line Items] | ||
Proceeds from sales | 0 | 2 |
Gross gains | 12 | 0 |
Impairment losses recognized | $ (2) | $ (1) |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) | May 12, 2020USD ($) | Jul. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Jul. 31, 2020USD ($) | Jul. 26, 2019USD ($) | May 12, 2020JPY (¥) | Apr. 24, 2020USD ($) | Jun. 30, 2019EUR (€)tranche |
Senior Notes | ||||||||
Principal value | $ 25,500,000,000 | $ 24,500,000,000 | ||||||
Cash proceeds, net of discounts and issuance costs | 0 | $ 5,567,000,000 | ||||||
Loss on extinguishment of debt | 0 | 406,000,000 | ||||||
Financial Instruments Not Measured at Fair Value | ||||||||
Long-term debt, including the current portion, fair value | 28,900,000,000 | 27,100,000,000 | ||||||
Term Loan Agreements | Medtronic Luxco | ||||||||
Line of Credit Facility | ||||||||
Term of debt instrument | 6 months | |||||||
Senior Notes | ||||||||
Principal value | $ 2,800,000,000 | ¥ 300,000,000,000 | ||||||
Term Loan Agreements | ||||||||
Additional extension option, term of extension | 6 months | |||||||
Term Loan Agreements | Medtronic Luxco | TIBOR Rate | ||||||||
Term Loan Agreements | ||||||||
Margin added to variable rate | 0.50% | |||||||
Commercial Paper Program | Commercial Paper | ||||||||
Commercial Paper | ||||||||
Commercial paper, maximum borrowing amount | 3,500,000,000 | |||||||
Commercial paper, amount outstanding | 0 | 0 | ||||||
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, amount outstanding | $ 0 | $ 0 | ||||||
Senior Notes 2019 | Senior notes | Medtronic Luxco | ||||||||
Senior Notes | ||||||||
Number of tranches | tranche | 6 | |||||||
Principal value | € | € 5,000,000,000 | |||||||
Cash proceeds, net of discounts and issuance costs | $ 5,600,000,000 | |||||||
Medtronic Inc, CIFSA, and Medtronic Luxco Senior Notes | Senior notes | ||||||||
Senior Notes | ||||||||
Extinguishment of debt | $ 4,600,000,000 | |||||||
Total consideration | $ 5,000,000,000 | |||||||
Loss on extinguishment of debt | $ 413,000,000 |
Financing Arrangements - Long-T
Financing Arrangements - Long-Term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Apr. 24, 2020 | |
Debt Instrument [Line Items] | ||
Current debt obligations | $ 5,823 | $ 2,776 |
Long-term debt | ||
Debt discount, net | (14) | (15) |
Finance lease obligations | 45 | 45 |
Deferred financing costs | (99) | (104) |
Long-term debt | $ 22,867 | 22,021 |
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 | $ 1,534 | 1,534 |
Senior notes | 3.200 percent ten-year 2012 senior notes | ||
Long-term debt | ||
Stated interest rate | 3.20% | |
Term of debt instrument | 10 years | |
Long-term debt, gross | $ 650 | 650 |
Senior notes | 0.375 percent four-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 0.375% | |
Term of debt instrument | 4 years | |
Long-term debt, gross | $ 1,762 | 1,631 |
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 | 0.000 percent four-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 0.00% | |
Term of debt instrument | 4 years | |
Long-term debt, gross | $ 881 | 815 |
Senior notes | 2.950 percent ten-year 2013 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 | $ 432 | 432 |
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 | $ 2,700 | 2,700 |
Senior notes | 0.250 percent seven-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 0.25% | |
Term of debt instrument | 7 years | |
Long-term debt, gross | $ 1,175 | 1,087 |
Senior notes | 1.125 percent eight-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 1.125% | |
Term of debt instrument | 8 years | |
Long-term debt, gross | $ 1,762 | 1,631 |
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 | $ 368 | 368 |
Senior notes | 1.625 percent twelve-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 1.625% | |
Term of debt instrument | 12 years | |
Long-term debt, gross | $ 1,175 | 1,087 |
Senior notes | 1.000 percent thirteen-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 1.00% | |
Term of debt instrument | 13 years | |
Long-term debt, gross | $ 1,175 | 1,087 |
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 | $ 1,932 | 1,932 |
Senior notes | 6.550 percent thirty-year 2007 senior notes | ||
Long-term debt | ||
Stated interest rate | 6.55% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 253 | 253 |
Senior notes | 2.250 percent twenty-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 2.25% | |
Term of debt instrument | 20 years | |
Long-term debt, gross | $ 1,175 | 1,087 |
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 | $ 158 | 158 |
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 | $ 224 | 224 |
Senior notes | 1.500 percent twenty-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 1.50% | |
Term of debt instrument | 20 years | |
Long-term debt, gross | $ 1,175 | 1,087 |
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 | $ 105 | 105 |
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 | $ 305 | 305 |
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 | $ 127 | 127 |
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 | $ 1,813 | 1,813 |
Senior notes | 1.750 percent thirty-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 1.75% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 1,175 | 1,087 |
Bank borrowings | ||
Long-term debt | ||
Long-term debt, gross | $ 39 | $ 55 |
Derivatives and Currency Exch_3
Derivatives and Currency Exchange Risk Management - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2020USD ($) | Jul. 26, 2019USD ($) | Apr. 24, 2020USD ($) | Jul. 31, 2020EUR (€) | Jul. 31, 2020JPY (¥) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
After-tax net unrealized gains (losses) associated with cash flow hedging instruments recorded in AOCI | $ (84,000,000) | $ 266,000,000 | |||
Cash flow hedge unrealized losses to be reclassified over the next 12 months | 4,000,000 | ||||
After-tax net unrealized gains (losses) associated with net investment hedging instruments recorded in AOCI | (876,000,000) | 236,000,000 | |||
Net investment hedge unrealized gains or losses to be reclassified over the next twelve months, net of tax | 0 | ||||
Gains (losses) on firm commitments that no longer qualify as net investment hedges | 0 | $ 0 | |||
Currency exchange rate contracts | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross notional amount | 17,400,000,000 | 11,900,000,000 | |||
Currency exchange rate contracts | Derivatives not designated as hedging instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross notional amount | 10,300,000,000 | 4,900,000,000 | |||
Currency exchange rate contracts | Derivatives designated as hedging instruments | Cash flow hedging | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross notional amount | $ 7,100,000,000 | 7,000,000,000 | |||
Maximum remaining maturity of foreign currency derivatives | 3 years | ||||
Currency exchange rate contracts | Derivatives designated as hedging instruments | Net investment hedging | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross notional amount | € 12,000,000,000 | ¥ 300,000,000,000 | |||
Currency exchange rate contracts | Derivatives designated as hedging instruments | Net investment hedging | Euro-denominated Debt | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross notional amount | $ 14,100,000,000 | ||||
Currency exchange rate contracts | Derivatives designated as hedging instruments | Net investment hedging | Japanese Yen-denominated Debt | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross notional amount | 2,900,000,000 | ||||
Total return swaps | Derivatives not designated as hedging instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross notional amount | $ 197,000,000 | $ 181,000,000 |
Derivatives and Currency Exch_4
Derivatives and Currency Exchange Risk Management - Derivative (Gains) Losses Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Derivative Instruments, (Gain) Loss [Line Items] | ||
Total | $ 100 | $ 1 |
Other operating income, net | Currency exchange rate contracts | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Total | 127 | 6 |
Other operating income, net | Total return swaps | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Total | $ (27) | $ (5) |
Derivatives and Currency Exch_5
Derivatives and Currency Exchange Risk Management - (Gains) Losses Recognized in AOCI, Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Currency exchange rate contracts | Cash flow hedging | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Recognized in AOCI, Cash flow hedges | $ 389 | $ (27) |
Derivatives and Currency Exch_6
Derivatives and Currency Exchange Risk Management - Amount of (Gains) Losses Recognized in Consolidated Statements of Income, Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Other operating income, net | $ (114) | $ (22) |
Cash flow hedging | Currency exchange rate contracts | Other operating income, net | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain reclassified from AOCI into income | $ (53) | $ (57) |
Derivatives and Currency Exch_7
Derivatives and Currency Exchange Risk Management - (Gains) Losses Recognized in Income, Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Currency exchange rate contracts | Other operating income, net | Net investment hedges | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Recognized in Income, Net investment hedges | $ 0 | $ (7) |
Derivatives and Currency Exch_8
Derivatives and Currency Exchange Risk Management - (Gains) Losses Recognized in AOCI, Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Derivative Instruments, (Gain) Loss [Line Items] | ||
Recognized in AOCI, Net investment hedges | $ 1,112 | $ (99) |
Currency exchange rate contracts | Net investment hedges | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Recognized in AOCI, Net investment hedges | $ 1,112 | $ (99) |
Derivatives and Currency Exch_9
Derivatives and Currency Exchange Risk Management - Classification and Fair Value Amounts of Derivative Instruments in Balance Sheets (Details) - USD ($) $ in Millions | Jul. 31, 2020 | Apr. 24, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | $ 140 | $ 402 |
Derivative Liabilities, Fair Value | 192 | 42 |
Currency exchange rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 137 | 399 |
Derivative Liabilities, Fair Value | 192 | 17 |
Total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 1 | |
Derivative Liabilities, Fair Value | 25 | |
Cross-currency interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 2 | 3 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 67 | 374 |
Derivative Liabilities, Fair Value | 117 | 4 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 59 | 271 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 8 | 103 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 60 | 2 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 57 | 2 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 73 | 28 |
Derivative Liabilities, Fair Value | 75 | 38 |
Derivatives not designated as hedging instruments | Currency exchange rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 70 | 25 |
Derivatives not designated as hedging instruments | Currency exchange rate contracts | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 75 | 13 |
Derivatives not designated as hedging instruments | Total return swaps | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 1 | 0 |
Derivatives not designated as hedging instruments | Total return swaps | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 0 | 25 |
Derivatives not designated as hedging instruments | Cross-currency interest rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 2 | 3 |
Derivatives not designated as hedging instruments | Cross-currency interest rate contracts | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | $ 0 | $ 0 |
Derivatives and Currency Exc_10
Derivatives and Currency Exchange Risk Management - Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Jul. 31, 2020 | Apr. 24, 2020 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 137 | $ 399 |
Derivative liabilities | 192 | 17 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 3 | 3 |
Derivative liabilities | $ 0 | $ 25 |
Derivatives and Currency Exc_11
Derivatives and Currency Exchange Risk Management - Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Jul. 31, 2020 | Apr. 24, 2020 |
Derivative assets: | ||
Gross Amount of Recorded Assets (Liabilities) | $ 140 | $ 402 |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | (86) | (17) |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | (48) |
Net Amount | 54 | 337 |
Derivative liabilities: | ||
Gross Amount of Recorded Assets (Liabilities) | (192) | (42) |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 17 | |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | |
Net Amount | (25) | |
Total | ||
Gross Amount of Recorded Assets (Liabilities) | (52) | 360 |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 0 | 0 |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 6 | (48) |
Net Amount | (46) | 312 |
Currency exchange rate contracts | ||
Derivative assets: | ||
Gross Amount of Recorded Assets (Liabilities) | 137 | 399 |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | (86) | (17) |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | (48) |
Net Amount | 51 | 334 |
Derivative liabilities: | ||
Gross Amount of Recorded Assets (Liabilities) | (192) | (17) |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 86 | 17 |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 6 | 0 |
Net Amount | (100) | 0 |
Cross-currency interest rate contracts | ||
Derivative assets: | ||
Gross Amount of Recorded Assets (Liabilities) | 2 | 3 |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 0 | 0 |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | 0 |
Net Amount | 2 | 3 |
Total return swaps | ||
Derivative assets: | ||
Gross Amount of Recorded Assets (Liabilities) | 1 | |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 0 | |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | |
Net Amount | $ 1 | |
Derivative liabilities: | ||
Gross Amount of Recorded Assets (Liabilities) | (25) | |
Gross Amount Not Offset on the Balance Sheet, Financial Instruments | 0 | |
Gross Amount Not Offset on the Balance Sheet, Cash Collateral Posted (Received) | 0 | |
Net Amount | $ (25) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jul. 31, 2020 | Apr. 24, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 3,024 | $ 2,874 |
Work in-process | 653 | 608 |
Raw materials | 874 | 747 |
Total | $ 4,551 | $ 4,229 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill (Details) $ in Millions | 3 Months Ended |
Jul. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 39,841 |
Purchase accounting adjustments | 3 |
Currency translation and other | 870 |
Ending balance | 40,714 |
Cardiac & Vascular Group | |
Goodwill [Roll Forward] | |
Beginning balance | 6,831 |
Purchase accounting adjustments | 0 |
Currency translation and other | 83 |
Ending balance | 6,914 |
Minimally Invasive Therapies Group | |
Goodwill [Roll Forward] | |
Beginning balance | 20,176 |
Purchase accounting adjustments | 0 |
Currency translation and other | 693 |
Ending balance | 20,869 |
Restorative Therapies Group | |
Goodwill [Roll Forward] | |
Beginning balance | 10,920 |
Purchase accounting adjustments | 3 |
Currency translation and other | 93 |
Ending balance | 11,016 |
Diabetes Group | |
Goodwill [Roll Forward] | |
Beginning balance | 1,914 |
Purchase accounting adjustments | 0 |
Currency translation and other | 1 |
Ending balance | $ 1,915 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment | $ 0 | $ 0 |
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible asset charges | 0 | 0 |
Impairment of indefinite-lived intangible assets | 0 | 0 |
Amortization expense | $ 440,000,000 | $ 440,000,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Carrying Amount and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Millions | Jul. 31, 2020 | Apr. 24, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 28,408 | $ 28,244 |
Accumulated Amortization | (10,179) | (9,704) |
IPR&D | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Indefinite-lived | 441 | 523 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 17,000 | 16,963 |
Accumulated Amortization | (5,321) | (5,065) |
Purchased technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10,868 | 10,742 |
Accumulated Amortization | (4,567) | (4,354) |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 465 | 464 |
Accumulated Amortization | (236) | (232) |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 75 | 75 |
Accumulated Amortization | $ (55) | $ (53) |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Future Aggregate Amortization Expense of Amortizable Intangible Assets (Details) $ in Millions | Jul. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining 2021 | $ 1,319 |
2022 | 1,718 |
2023 | 1,654 |
2024 | 1,624 |
2025 | 1,599 |
2026 | $ 1,587 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 31, 2020 | Jul. 26, 2019 | Apr. 24, 2020 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 15.90% | 10.20% | |
Certain tax adjustments | $ 4 | $ (30) | |
Benefit associated with finalization of intercompany sale of intellectual property and establishment of deferred tax asset | 3 | ||
Recognition of previously deferred tax benefit from intercompany intellectual property transactions | $ 1,500 | ||
Deferred tax asset amortization period | 20 years | ||
Cost associated with amortization of previously established deferred tax assets from intercompany intellectual property transactions | $ 7 | ||
Net benefit related to measurement period adjustment related to U.S. Tax Reform | $ 30 | ||
Gross unrecognized tax benefits | 1,900 | $ 1,900 | |
Accrued gross interest and penalties | 241 | ||
Unrecognized tax benefits that would impact effective tax rate | 1,800 | ||
Gross unrecognized tax benefits recorded as noncurrent liability | $ 934 | $ 911 |
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 | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Numerator: | ||
Net income attributable to ordinary shareholders | $ 487 | $ 864 |
Denominator: | ||
Basic - weighted average shares outstanding (shares) | 1,341.9 | 1,340.8 |
Effect of dilutive securities: | ||
Employee stock options (shares) | 4.7 | 6.9 |
Employee restricted stock units (shares) | 2.7 | 3.5 |
Other (shares) | 0.7 | 0.7 |
Diluted - weighted average shares outstanding (shares) | 1,350 | 1,351.9 |
Basic earnings per share (usd per share) | $ 0.36 | $ 0.64 |
Diluted earnings per share (usd per share) | $ 0.36 | $ 0.64 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (shares) | 7 | 3 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 70 | $ 61 |
Income tax benefits | (11) | (10) |
Total stock-based compensation expense, net of tax | 59 | 51 |
Cost of products sold | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 7 | 6 |
Research and development expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 8 | 7 |
Selling, general, and administrative expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 55 | 48 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 8 | 9 |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 50 | 42 |
Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 12 | $ 10 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - Pension plans - USD ($) $ in Millions | 3 Months Ended | ||
Oct. 30, 2020 | Jul. 31, 2020 | Jul. 26, 2019 | |
U.S. | |||
Net Periodic Benefit Cost | |||
Service cost | $ 27 | $ 26 | |
Interest cost | 27 | 32 | |
Expected return on plan assets | (61) | (56) | |
Amortization of net actuarial loss | 18 | 14 | |
Net periodic benefit cost | 11 | 16 | |
U.S. | Subsequent Event | Forecast | |||
Net Periodic Benefit Cost | |||
Charge related to acceptance of voluntary early retirement packages | $ 100 | ||
Non-U.S. | |||
Net Periodic Benefit Cost | |||
Service cost | 17 | 15 | |
Interest cost | 6 | 7 | |
Expected return on plan assets | (14) | (15) | |
Amortization of net actuarial loss | 6 | 3 | |
Net periodic benefit cost | $ 15 | $ 10 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 50,872,000,000 | $ 50,212,000,000 |
Other comprehensive (loss) income | (217,000,000) | 227,000,000 |
Ending balance | 50,443,000,000 | 50,497,000,000 |
Total Accumulated Other Comprehensive (Loss) Income | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (3,560,000,000) | (2,711,000,000) |
Other comprehensive income (loss) before reclassifications | (196,000,000) | 242,000,000 |
Reclassifications | (26,000,000) | (15,000,000) |
Other comprehensive (loss) income | (222,000,000) | 227,000,000 |
Ending balance | (3,782,000,000) | (2,484,000,000) |
Unrealized (Loss) Gain on Investment Securities | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | (45,000,000) |
Other comprehensive income (loss) before reclassifications | 125,000,000 | 51,000,000 |
Reclassifications | 0 | 5,000,000 |
Other comprehensive (loss) income | 125,000,000 | 56,000,000 |
Ending balance | 125,000,000 | 11,000,000 |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | 30,000,000 | (1,000,000) |
Reclassifications, tax expense (benefit) | 0 | (1,000,000) |
Cumulative Translation Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (2,210,000,000) | (1,383,000,000) |
Other comprehensive income (loss) before reclassifications | 1,112,000,000 | 66,000,000 |
Reclassifications | 0 | 0 |
Other comprehensive (loss) income | 1,112,000,000 | 66,000,000 |
Ending balance | (1,098,000,000) | (1,317,000,000) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | 4,000,000 | 0 |
Net Investment Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 236,000,000 | (169,000,000) |
Other comprehensive income (loss) before reclassifications | (1,112,000,000) | 99,000,000 |
Reclassifications | 0 | 0 |
Other comprehensive (loss) income | (1,112,000,000) | 99,000,000 |
Ending balance | (876,000,000) | (70,000,000) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | 0 | 0 |
Net Change in Retirement Obligations | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,852,000,000) | (1,308,000,000) |
Other comprehensive income (loss) before reclassifications | (12,000,000) | 0 |
Reclassifications | 15,000,000 | 13,000,000 |
Other comprehensive (loss) income | 3,000,000 | 13,000,000 |
Ending balance | (1,849,000,000) | (1,295,000,000) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | (5,000,000) | 0 |
Reclassifications, tax expense (benefit) | (4,000,000) | (3,000,000) |
Unrealized Gain (Loss) on Cash Flow Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 266,000,000 | 194,000,000 |
Other comprehensive income (loss) before reclassifications | (309,000,000) | 26,000,000 |
Reclassifications | (41,000,000) | (33,000,000) |
Other comprehensive (loss) income | (350,000,000) | (7,000,000) |
Ending balance | (84,000,000) | 187,000,000 |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | (80,000,000) | 1,000,000 |
Reclassifications, tax expense (benefit) | $ (11,000,000) | $ (11,000,000) |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Aug. 05, 2020claim | Nov. 28, 2018USD ($) | Dec. 14, 2011patent | May 31, 2017claim | Jul. 31, 2020USD ($)manufacturerclaimsubsidiarylandfill | Jul. 26, 2019USD ($) | Apr. 29, 2016USD ($)claim | Apr. 24, 2020USD ($) |
Loss Contingencies [Line Items] | ||||||||
Certain litigation charges, net | $ (88) | $ 47 | ||||||
Accrued litigation charges | $ 400 | $ 500 | ||||||
Orrington, Maine chemical manufacturing facility | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of landfills requiring removal | landfill | 2 | |||||||
Number of landfills requiring capping | landfill | 3 | |||||||
Pelvic mesh | Product liability litigation | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of subsidiaries | subsidiary | 2 | |||||||
Number of manufacturers | manufacturer | 1 | |||||||
Amount of settlement received | $ 121 | |||||||
Number of claims settled | claim | 5,000 | 11,000 | ||||||
Number of claimants | claim | 16,200 | |||||||
Pelvic mesh | Product liability litigation | Subsequent Event | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of claims settled | claim | 15,900 | |||||||
Ethicon | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of patents allegedly infringed upon | patent | 1 | |||||||
Number of claims dismissed | patent | 6 | |||||||
Sasso | ||||||||
Loss Contingencies [Line Items] | ||||||||
Approximate amount of verdict returned against the Company | $ 112 |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2020 | Jul. 26, 2019 | |
Segment Operating Profit | ||
Segment operating profit | $ 673 | $ 1,485 |
Interest expense | (171) | (609) |
Amortization of intangible assets | (440) | (440) |
Restructuring and associated costs | (53) | (47) |
Certain litigation charges, net | 88 | (47) |
Income before income taxes | 584 | 977 |
Geographic Information | ||
Net sales | 6,507 | 7,493 |
Ireland | ||
Geographic Information | ||
Net sales | 24 | 20 |
United States | ||
Geographic Information | ||
Net sales | 3,351 | 3,918 |
Rest of world | ||
Geographic Information | ||
Net sales | 3,132 | 3,555 |
Total other countries, excluding Ireland | ||
Geographic Information | ||
Net sales | 6,483 | 7,473 |
Operating Segments | ||
Segment Operating Profit | ||
Segment operating profit | 1,840 | 2,768 |
Segment Reconciling Items | ||
Segment Operating Profit | ||
Interest expense | (171) | (609) |
Other non-operating income, net | 82 | 101 |
Amortization of intangible assets | (440) | (440) |
Corporate | (365) | (307) |
Centralized distribution costs | (399) | (345) |
Restructuring and associated costs | (128) | (124) |
Acquisition-related items | 105 | (19) |
Certain litigation charges, net | 88 | (47) |
IPR&D charges | (10) | 0 |
Debt tender premium and other charges | 0 | 7 |
Medical device regulations | (18) | (8) |
Cardiac & Vascular Group | ||
Geographic Information | ||
Net sales | 2,433 | 2,790 |
Cardiac & Vascular Group | United States | ||
Geographic Information | ||
Net sales | 1,206 | 1,361 |
Cardiac & Vascular Group | Operating Segments | ||
Segment Operating Profit | ||
Segment operating profit | 759 | 1,055 |
Minimally Invasive Therapies Group | ||
Geographic Information | ||
Net sales | 1,801 | 2,100 |
Minimally Invasive Therapies Group | United States | ||
Geographic Information | ||
Net sales | 722 | 913 |
Minimally Invasive Therapies Group | Operating Segments | ||
Segment Operating Profit | ||
Segment operating profit | 455 | 771 |
Restorative Therapies Group | ||
Geographic Information | ||
Net sales | 1,712 | 2,012 |
Restorative Therapies Group | United States | ||
Geographic Information | ||
Net sales | 1,136 | 1,338 |
Restorative Therapies Group | Operating Segments | ||
Segment Operating Profit | ||
Segment operating profit | 523 | 793 |
Diabetes Group | ||
Geographic Information | ||
Net sales | 562 | 592 |
Diabetes Group | United States | ||
Geographic Information | ||
Net sales | 287 | 306 |
Diabetes Group | Operating Segments | ||
Segment Operating Profit | ||
Segment operating profit | $ 103 | $ 149 |
Uncategorized Items - mdt-20200
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201602Member |