Cover
Cover - shares | 3 Months Ended | |
Jul. 29, 2022 | Aug. 29, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 29, 2022 | |
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 Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Ordinary Shares Outstanding | 1,329,153,289 | |
Entity Central Index Key | 0001613103 | |
Current Fiscal Year End Date | --04-28 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
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 | |
0.00% Senior Notes due 2022 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.00% 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 | |
0.000% Senior Notes due 2023 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.000% Senior Notes due 2023 | |
Trading Symbol | MDT/23C | |
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 | |
0.000% Senior Notes due 2025 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.000% Senior Notes due 2025 | |
Trading Symbol | MDT/25A | |
Security Exchange Name | NYSE | |
1.125% Senior Notes due 2027 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.125% Senior Notes due 2027 | |
Trading Symbol | MDT/27 | |
Security Exchange Name | NYSE | |
0.375% Senior Notes due 2028 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.375% Senior Notes due 2028 | |
Trading Symbol | MDT/28 | |
Security Exchange Name | NYSE | |
1.625% Senior Notes due 2031 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.625% Senior 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 | |
0.750% Senior Notes due 2032 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.750% Senior Notes due 2032 | |
Trading Symbol | MDT/32 | |
Security Exchange Name | NYSE | |
2.250% Senior Notes due 2039 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.250% Senior 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 | |
1.375% Senior Notes due 2040 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.375% Senior Notes due 2040 | |
Trading Symbol | MDT/40A | |
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 | |
1.625% Senior Notes due 2050 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.625% Senior Notes due 2050 | |
Trading Symbol | MDT/50 | |
Security Exchange Name | NYSE |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 7,371,000,000 | $ 7,987,000,000 |
Costs and expenses: | ||
Cost of products sold, excluding amortization of intangible assets | 2,516,000,000 | 2,598,000,000 |
Research and development expense | 692,000,000 | 750,000,000 |
Selling, general, and administrative expense | 2,567,000,000 | 2,547,000,000 |
Amortization of intangible assets | 423,000,000 | 436,000,000 |
Restructuring charges, net | 14,000,000 | 11,000,000 |
Certain litigation charges, net | 0 | 26,000,000 |
Other operating expense, net | 35,000,000 | 760,000,000 |
Operating profit | 1,125,000,000 | 859,000,000 |
Other non-operating income, net | (83,000,000) | (111,000,000) |
Interest expense | 164,000,000 | 137,000,000 |
Income before income taxes | 1,044,000,000 | 833,000,000 |
Income tax provision | 112,000,000 | 64,000,000 |
Net income | 931,000,000 | 769,000,000 |
Net income attributable to noncontrolling interests | (2,000,000) | (6,000,000) |
Net income attributable to Medtronic | $ 929,000,000 | $ 763,000,000 |
Basic earnings per share (usd per share) | $ 0.70 | $ 0.57 |
Diluted earnings per share (usd per share) | $ 0.70 | $ 0.56 |
Basic weighted average shares outstanding (shares) | 1,329.4 | 1,344.5 |
Diluted weighted average shares outstanding (shares) | 1,334.5 | 1,356.4 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 931 | $ 769 |
Other comprehensive income (loss), net of tax: | ||
Unrealized (loss) gain on investment securities | (16) | 12 |
Translation adjustment | (884) | (355) |
Net investment hedge | 1,002 | 424 |
Net change in retirement obligations | 1 | 19 |
Unrealized gain on cash flow hedges | 220 | 174 |
Other comprehensive income | 324 | 274 |
Comprehensive income including noncontrolling interests | 1,255 | 1,043 |
Comprehensive income attributable to noncontrolling interests | 0 | (4) |
Comprehensive income attributable to Medtronic | $ 1,255 | $ 1,039 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 2,140 | $ 3,714 |
Investments | 6,733 | 6,859 |
Accounts receivable, less allowances and credit losses of $219 and $230, respectively | 5,308 | 5,551 |
Inventories, net | 4,809 | 4,616 |
Other current assets | 3,145 | 2,318 |
Total current assets | 22,135 | 23,059 |
Property, plant, and equipment | 13,323 | 13,365 |
Accumulated depreciation | (8,043) | (7,952) |
Property, plant, and equipment, net | 5,281 | 5,413 |
Goodwill | 40,324 | 40,502 |
Other intangible assets, net | 15,775 | 15,595 |
Tax assets | 3,311 | 3,403 |
Other assets | 3,088 | 3,008 |
Total assets | 89,914 | 90,981 |
Current liabilities: | ||
Current debt obligations | 5,729 | 3,742 |
Accounts payable | 2,180 | 2,276 |
Accrued compensation | 1,773 | 2,121 |
Accrued income taxes | 549 | 704 |
Other accrued expenses | 3,816 | 3,551 |
Total current liabilities | 14,049 | 12,394 |
Long-term debt | 17,481 | 20,372 |
Accrued compensation and retirement benefits | 1,102 | 1,113 |
Accrued income taxes | 2,102 | 2,087 |
Deferred tax liabilities | 899 | 884 |
Other liabilities | 1,440 | 1,410 |
Total liabilities | 37,071 | 38,260 |
Commitments and contingencies (Note 16) | ||
Shareholders’ equity: | ||
Ordinary shares— par value $0.0001, 2.6 billion shares authorized, 1,329,276,973 and 1,330,743,395 shares issued and outstanding, respectively | 0 | 0 |
Additional paid-in capital | 24,335 | 24,566 |
Retained earnings | 30,276 | 30,250 |
Accumulated other comprehensive loss | (1,939) | (2,265) |
Total shareholders’ equity | 52,672 | 52,551 |
Noncontrolling interests | 170 | 171 |
Total equity | 52,843 | 52,722 |
Total liabilities and equity | $ 89,914 | $ 90,981 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 219 | $ 230 |
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) | 1,329,276,973 | 1,330,743,395 |
Ordinary shares outstanding (shares) | 1,329,276,973 | 1,330,743,395 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Total Shareholders’ Equity | Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Beginning balance (shares) at Apr. 30, 2021 | 1,345,000,000 | ||||||
Beginning balance at Apr. 30, 2021 | $ 51,602 | $ 51,428 | $ 0 | $ 26,319 | $ 28,594 | $ (3,485) | $ 174 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 769 | 763 | 763 | 6 | |||
Other comprehensive income (loss) | 274 | 276 | 276 | (2) | |||
Dividends to shareholders | (846) | (846) | (846) | ||||
Issuance of shares under stock purchase and award plans (shares) | 2,000,000 | ||||||
Issuance of shares under stock purchase and award plans | 107 | 107 | 107 | ||||
Repurchase of ordinary shares (shares) | (2,000,000) | ||||||
Repurchase of ordinary shares | (311) | (311) | (311) | ||||
Stock-based compensation | 69 | 69 | 69 | ||||
Ending balance (shares) at Jul. 30, 2021 | 1,345,000,000 | ||||||
Ending balance at Jul. 30, 2021 | $ 51,664 | 51,486 | $ 0 | 26,184 | 28,511 | (3,209) | 178 |
Beginning balance (shares) at Apr. 29, 2022 | 1,330,743,395 | 1,331,000,000 | |||||
Beginning balance at Apr. 29, 2022 | $ 52,722 | 52,551 | $ 0 | 24,566 | 30,250 | (2,265) | 171 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 931 | 929 | 929 | 2 | |||
Other comprehensive income (loss) | 324 | 326 | 326 | (2) | |||
Dividends to shareholders | (903) | (903) | (903) | ||||
Issuance of shares under stock purchase and award plans (shares) | 2,000,000 | ||||||
Issuance of shares under stock purchase and award plans | 41 | 41 | 41 | ||||
Repurchase of ordinary shares (shares) | (3,000,000) | ||||||
Repurchase of ordinary shares | (333) | (333) | (333) | ||||
Stock-based compensation | $ 62 | 62 | 62 | ||||
Ending balance (shares) at Jul. 29, 2022 | 1,329,276,973 | 1,329,000,000 | |||||
Ending balance at Jul. 29, 2022 | $ 52,843 | $ 52,672 | $ 0 | $ 24,335 | $ 30,276 | $ (1,939) | $ 170 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends to shareholders (usd per share) | $ 0.68 | $ 0.63 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Operating Activities: | ||
Net income | $ 931 | $ 769 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 668 | 671 |
Provision for credit losses | 15 | 15 |
Deferred income taxes | (18) | (11) |
Stock-based compensation | 62 | 69 |
Loss on debt extinguishment | 53 | 0 |
MCS asset impairment and inventory write-down | 0 | 515 |
Other, net | 121 | 116 |
Change in operating assets and liabilities, net of acquisitions and divestitures: | ||
Accounts receivable, net | 89 | (40) |
Inventories, net | (380) | (75) |
Accounts payable and accrued liabilities | (147) | (416) |
Other operating assets and liabilities | (311) | (321) |
Net cash provided by operating activities | 1,083 | 1,292 |
Investing Activities: | ||
Acquisitions, net of cash acquired | (1,191) | 0 |
Additions to property, plant, and equipment | (426) | (378) |
Purchases of investments | (1,884) | (2,654) |
Sales and maturities of investments | 1,886 | 2,324 |
Other investing activities, net | 30 | (76) |
Net cash used in investing activities | (1,585) | (784) |
Financing Activities: | ||
Proceeds from short-term borrowings (maturities greater than 90 days) | 2,284 | 0 |
Payments on long-term debt | (2,311) | (1) |
Dividends to shareholders | (903) | (846) |
Issuance of ordinary shares | 43 | 111 |
Repurchase of ordinary shares | (336) | (315) |
Other financing activities | 273 | (4) |
Net cash used in financing activities | (950) | (1,055) |
Effect of exchange rate changes on cash and cash equivalents | (122) | (42) |
Net change in cash and cash equivalents | (1,574) | (589) |
Cash and cash equivalents at beginning of period | 3,714 | 3,593 |
Cash and cash equivalents at end of period | 2,140 | 3,004 |
Cash paid for: | ||
Income taxes | 260 | 249 |
Interest | $ 68 | $ 63 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 29, 2022 | |
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 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") has had, and may continue to have, an adverse effect on our business, results of operations, financial condition, and cash flows, and its future impacts remain uncertain and unpredictable. While there was not a material impact to the Company’s consolidated financial statements as of and for the three months ended July 29, 2022, 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. Amounts reported in millions within this quarterly report are computed based on the amounts in thousands, and therefore, the sum of the components may not equal the total amount reported in millions due to rounding. Additionally, certain columns and rows within tables may not sum due to rounding. The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements of the Company and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended April 29, 2022. The Company’s fiscal years 2023, 2022, and 2021 will end or ended on April 28, 2023, April 29, 2022, and April 30, 2021, respectively. Fiscal year 2021 was a 53-week year. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Jul. 29, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted For the three months ended July 29, 2022, there were no newly adopted accounting pronouncements that had a material impact to our consolidated financial statements. As of July 29, 2022, there are no recently issued but not yet adopted accounting pronouncements that are expected to materially impact our consolidated financial statements . |
Revenue
Revenue | 3 Months Ended |
Jul. 29, 2022 | |
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 healthcare systems, clinics, third-party healthcare providers, distributors, and other institutions, including governmental healthcare programs and group purchasing organizations. The table below illustrates net sales by segment and division for the three months ended July 29, 2022 and July 30, 2021: Three months ended (in millions) July 29, 2022 July 30, 2021 Cardiac Rhythm & Heart Failure $ 1,393 $ 1,483 Structural Heart & Aortic 741 787 Coronary & Peripheral Vascular 579 620 Cardiovascular 2,713 2,890 Surgical Innovations 1,338 1,554 Respiratory, Gastrointestinal, & Renal 664 768 Medical Surgical 2,001 2,322 Cranial & Spinal Technologies 1,043 1,123 Specialty Therapies 667 641 Neuromodulation 405 440 Neuroscience 2,115 2,204 Diabetes 541 572 Total $ 7,371 $ 7,987 The table below illustrates net sales by market geography for each segment for the three months ended July 29, 2022 and July 30, 2021: U.S. (1) Non-U.S. Developed Markets (2) Emerging Markets (3) Three months ended Three months ended Three months ended (in millions) July 29, 2022 July 30, 2021 July 29, 2022 July 30, 2021 July 29, 2022 July 30, 2021 Cardiovascular $ 1,298 $ 1,420 $ 892 $ 1,003 $ 523 $ 467 Medical Surgical 843 990 767 869 392 463 Neuroscience 1,419 1,446 407 465 290 293 Diabetes 206 245 264 263 72 63 Total $ 3,766 $ 4,101 $ 2,328 $ 2,601 $ 1,276 $ 1,286 (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. 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 29, 2022, $955 million of rebates were classified as other accrued expenses , and $576 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheet. At April 29, 2022, $981 million of rebates were classified as other accrued expenses, and $548 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheet. 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 29, 2022 and April 29, 2022 was $391 million and $399 million, respectively. At July 29, 2022 and April 29, 2022, $302 million and $305 million was included in other accrued expenses, respectively, and $90 million and $94 million was included in other liabilities, respectively. During the three months ended July 29, 2022, the Company recognized $87 million of revenue that was included in deferred revenue as of April 29, 2022. Remaining performance obligations include goods and services that have not yet been delivered or provided under existing, noncancellable contracts with minimum purchase commitments. At July 29, 2022, 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 $801 million. The Company expects to recognize revenue on the majority of these remaining performance obligations over the next three years. |
Acquisitions and Assets and Lia
Acquisitions and Assets and Liabilities Held for Sale | 3 Months Ended |
Jul. 29, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Assets and Liabilities Held for Sale | Acquisitions and Assets and Liabilities Held for Sale During the three months ended July 29, 2022, the Company had acquisitions 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 29, 2022. 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. For the three months ended July 29, 2022 and July 30, 2021, purchase price allocation adjustments were not significant. Fiscal Year 2023 Intersect ENT On May 13, 2022, the Company acquired Intersect ENT, a global ear, nose, and throat (ENT) medical technology leader. The acquisition expands the Neuroscience segment portfolio of products used during ENT procedures, and combined with the Company's navigation, powered instruments, and existing tissue health products, will offer a broader suite of solutions to assist surgeons treating patients who suffer from chronic rhinosinusitis (CRS). Total consideration, net of cash acquired, for the transaction, in which the Company acquired all outstanding shares of Intersect ENT for $28.25 per share, was $1.2 billion consisting of $1.1 billion of cash and $98 million previously held investments in Intersect ENT. Based upon a preliminary acquisition valuation, the Company acquired $615 million of goodwill, $635 million of technology-based intangible assets, $35 million of customer-related intangible assets, and $13 million of tradenames with estimated useful lives of 20 years. The goodwill is not deductible for tax purposes. Revenue and net loss attributable to Intersect ENT since the date of acquisition as well as costs incurred in connection with the acquisition included in the consolidated statements of income were not significant for the three months ended July 29, 2022. The acquisition date fair values of the assets acquired and liabilities assumed were as follows: (in millions) Intersect ENT Cash and cash equivalents $ 39 Inventory 32 Goodwill 615 Other intangible assets 683 Other assets 40 Total assets acquired 1,408 Current liabilities 63 Deferred tax liabilities 51 Other liabilities 18 Total liabilities assumed 131 Net assets acquired $ 1,277 Other acquisitions For acquisitions other than Intersect ENT, the acquisition date fair value of net assets acquired during the three months ended July 29, 2022 was $123 million. Based upon preliminary valuations, assets acquired were primarily comprised of $66 million of goodwill and $57 million of technology-based intangible assets with estimated useful lives of 16 years. The goodwill is deductible for tax purposes. The Company recognized $73 million of contingent consideration liabilities in connection with these acquisitions during the three months ended July 29, 2022, which are comprised of revenue and regulatory milestone-based payments. Subsequent Acquisitions Subsequent to July 29, 2022, on August 30, 2022 the Company acquired Affera, Inc. (Affera) a privately-held manufacturer of cardiac mapping and navigation systems and catheter-based cardiac ablation technologies. The acquisition expands the Cardiovascular segment portfolio of advanced cardiac ablation products and accessories to include its first cardiac mapping and navigation platform to meet physician needs within a growing patient population. Total consideration for the transaction is up to $1.0 billion, including up to $250 million of undiscounted contingent consideration related to certain technical and regulatory milestones. The transaction will be accounted for as a business combination using the acquisition method of accounting. This requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. Due to the limited amount of time since the acquisition date and the significant limitations on access to Affera information prior to the acquisition date, the preliminary acquisition valuation for the business combination is incomplete at this time. As a result, the Company is unable to provide the amounts recognized as of the acquisition date for the major classes of assets acquired and liabilities assumed, including the information required for valuation of intangible assets and goodwill. We will include such disclosures in our Form 10-Q for the quarter ending October 28, 2022. Acquired In-Process Research & Development (IPR&D) IPR&D with no alternative future use acquired outside of a business combination is expensed immediately. During the three months ended July 29, 2022, IPR&D acquired in connection with asset acquisitions of technology not yet approved by regulators was not significant. During the three months ended July 30, 2021, the Company acquired $90 million of IPR&D in connection with asset acquisitions of technology not yet approved by regulators, which was recognized in research and development expense in the consolidated statements of income. Contingent Consideration Certain of the Company’s business combinations involve potential payment of future consideration that is contingent upon the achievement of certain product development milestones and/or contingent on the acquired business reaching certain performance milestones. A liability is recorded for the estimated fair value of the contingent consideration on the acquisition date. The fair value of the contingent consideration is remeasured at each reporting period, and the change in fair value is recognized within other operating expense, net in the consolidated statements of income. The fair value of contingent consideration at July 29, 2022 and April 29, 2022 was $193 million and $119 million, respectively. At July 29, 2022, $64 million was recorded in other accrued expenses , and $129 million was recorded in other liabilities in the consolidated balance sheet. At April 29, 2022, $35 million was recorded in other accrued expenses , and $84 million was recorded in other liabilities in the consolidated balance sheet. The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Three months ended (in millions) July 29, 2022 July 30, 2021 Beginning balance $ 119 $ 270 Purchase price contingent consideration 73 — Purchase price allocation adjustments — 25 Payments — (11) Change in fair value 2 10 Ending balance $ 193 $ 294 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 29, 2022 Unobservable Input Range Weighted Average (1) Revenue and other performance-based payments $143 Discount rate 11.2% - 27.2% 15.0% Projected fiscal year of payment 2023 - 2027 2025 Product development and other milestone-based payments $50 Discount rate 5.5% 5.5% Projected fiscal year of payment 2023 - 2024 2023 (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. Assets and Liabilities Held for Sale On May 25, 2022, the Company and DaVita Inc. (“DaVita”) entered into a definitive agreement for the Company to sell half of its Renal Care Solutions (RCS) business. This sale is part of an agreement between Medtronic and DaVita to form a new, independent kidney care-focused medical device company (“NewCo”) with equal equity ownership. As a result of entering into the definitive agreement, the RCS business met the criteria to be classified as held for sale on the date the agreement was entered into. The transaction is expected to close in calendar year 2023, subject to customary regulatory approvals and closing conditions. RCS is part of the Company’s Medical Surgical portfolio. The Company recorded a non-cash pre-tax impairment of $67 million, primarily related to goodwill, in the three months ending July 29, 2022 recognized in other operating expense, net in the consolidated statements of income. Refer to Note 10 to the consolidated financial statements for additional information on the goodwill impairment. The following table presents information related to the assets and liabilities that were classified as held for sale in our consolidated balance sheet: (in millions) July 29, 2022 Inventories, net $ 119 Property, plant, and equipment, net 141 Goodwill 147 Other intangible assets, net 114 Other 48 Total assets held for sale (1) $ 568 Total liabilities held for sale (1)(2) $ 38 (1) Total assets held for sale and total liabilities held for sale are reported in other current assets and other accrued expenses , respectively in the consolidated balance sheets. (2) No separate class of liability classified as held for sale was individually significant enough for separate disclosure. There were no assets or liabilities classified as held for sale at April 29, 2022. The Company determined that the agreement to sell half of the RCS business does not meet the criteria to be classified as discontinued operations. |
Restructuring and Other Costs
Restructuring and Other Costs | 3 Months Ended |
Jul. 29, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs | Restructuring and Other Costs Enterprise Excellence In the third quarter of fiscal year 2018, the Company announced its Enterprise Excellence restructuring program. Further program details are described in Note 4 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended April 29, 2022. Since inception, the Company has incurred pre-tax exit and disposal costs and other costs, across all segments, of $1.6 billion in connection with the Enterprise Excellence program. In total, the Company estimates it will recognize approximately $1.8 billion of exit and disposal costs and other costs related to the program by the end of fiscal year 2023. The remaining charges are costs associated with the restructuring program, such as salaries and benefits for employees supporting the program, including program management and transition teams, and strategic and operational consulting services related to the three objectives of the program. 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 29, 2022, the Company recognized net charges of $40 million, of which $19 million was recognized within cost of products sold and $28 million was recognized within selling, general, and administrative expense in the consolidated statements of income. For the three months ended July 30, 2021, the Company recognized net charges of $74 million, of which $33 million were recognized within cost of products sold and $30 million were recognized within selling, general, and administrative expense in the consolidated statements of income. Simplification In the first quarter of fiscal year 2021, the Company initiated the Simplification restructuring program. Further program details are described in Note 4 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended April 29, 2022. Since inception, the Company has incurred pre-tax exit and disposal costs and other costs, across all segments, of $385 million in connection with the Simplification program. In total, the Company estimates it will recognize approximately $450 million of exit and disposal costs and other costs related to the Simplification program by the end of fiscal year 2023. 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 29, 2022, the Company recognized net charges of $36 million of which $13 million were recognized within selling, general, and administrative expense in the consolidated statements of income. For the three months ended July 30, 2021, the Company recognized net charges of $7 million which were all recognized within selling, general, and administrative expense in the consolidated statements of income. The following table summarizes the activity related to the restructuring programs above for the three months ended July 29, 2022: (in millions) Employee Termination Benefits Associated Costs (1) Other Total April 29, 2022 $ 81 $ 27 $ 1 $ 110 Charges 23 61 1 85 Cash payments (26) (75) (1) (103) Accrual adjustments (2) (9) — — (9) July 29, 2022 $ 69 $ 13 $ 1 $ 83 (1) Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses. (2) Accrual adjustments relate to certain employees identified for termination finding other positions within the Company. Mechanical Circulatory Support (MCS) In June 2021, the Company announced the decision to stop the distribution and sale of the Medtronic HVAD System in light of a growing body of observational clinical comparisons indicating a lower frequency of neurological adverse events and mortality with another circulatory support device available to patients compared to the HVAD system. In connection with this decision, the Company recorded charges of $726 million (MCS charges) within the Cardiovascular segment during the three months ended July 30, 2021, including $58 million recognized in costs of products sold and $668 million recognized within other operating expense, net in the consolidated statement of income . The charges included $515 million of non-cash impairments and write-downs primarily related to $409 million of intangible asset impairments and $58 million of inventory write-downs. The Company also recorded charges of $211 million for commitments and obligations associated with the decision, which included charges for patient support obligations, restructuring, and other associated costs. During the fourth quarter of fiscal year 2022, the Company recorded additional charges of $155 million within other operating expense, net primarily related to incremental commitments and obligations associated with the exit of the business. As of July 29, 2022, accruals were recorded in the consolidated balance sheet for these obligations, with $81 million reflected in other accrued expenses and $136 million recorded in other liabilities . Medtronic remains committed to serving the needs of the approximately 3,200 patients currently implanted with the HVAD system. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Jul. 29, 2022 | |
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 29, 2022 and April 29, 2022: July 29, 2022 Valuation Balance Sheet Classification (in millions) Cost Unrealized Unrealized Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 532 $ 1 $ (13) $ 520 $ 520 $ — Level 2: Corporate debt securities 4,339 4 (156) 4,186 4,186 — U.S. government and agency securities 928 — (37) 891 891 — Mortgage-backed securities 573 — (38) 535 535 — Non-U.S. government and agency securities 17 — — 17 17 — Certificates of deposit 10 — — 10 10 — Other asset-backed securities 595 — (22) 574 574 — Total Level 2 6,462 4 (253) 6,213 6,213 — Level 3: Auction rate securities 36 — (3) 33 — 33 Total available-for-sale debt securities $ 7,030 $ 5 $ (269) $ 6,767 $ 6,733 $ 33 April 29, 2022 Valuation Balance Sheet Classification (in millions) Cost Unrealized Unrealized Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 533 $ 1 $ (15) $ 518 $ 518 $ — Level 2: Corporate debt securities 4,457 4 (140) 4,321 4,321 — U.S. government and agency securities 910 — (41) 869 869 — Mortgage-backed securities 592 — (35) 558 558 — Non-U.S. government and agency securities 17 — — 17 17 — Certificates of deposit 20 — — 20 20 — Other asset-backed securities 567 — (11) 556 556 — Total Level 2 6,563 4 (227) 6,341 6,341 — Level 3: Auction rate securities 36 — (3) 33 — 33 Total available-for-sale debt securities $ 7,131 $ 5 $ (245) $ 6,893 $ 6,859 $ 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 29, 2022 and April 29, 2022: July 29, 2022 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized Corporate debt securities $ 243 $ (2) $ 3,044 $ (155) U.S. government and agency securities — — 942 (50) Mortgage-backed securities — — 521 (38) Other asset-backed securities — — 532 (22) Auction rate securities — — 33 (3) Total $ 243 $ (2) $ 5,072 $ (267) April 29, 2022 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized Corporate debt securities $ 222 $ (1) $ 2,993 $ (139) U.S. government and agency securities — — 945 (56) Mortgage-backed securities — — 507 (35) Other asset-backed securities — — 526 (11) Auction rate securities — — 33 (3) Total $ 222 $ (1) $ 5,004 $ (244) 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 29, 2022 and July 30, 2021. 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. Activity related to the Company’s available-for-sale debt securities portfolio is as follows: Three months ended (in millions) July 29, 2022 July 30, 2021 Proceeds from sales $ 1,864 $ 2,272 Gross realized gains 1 4 Gross realized losses (9) (2) The July 29, 2022 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 29, 2022 Due in one year or less $ 1,378 Due after one year through five years 3,597 Due after five years through ten years 1,102 Due after ten years 690 Total $ 6,767 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 29, 2022 and April 29, 2022, which are classified as other assets in the consolidated balance sheets: (in millions) July 29, 2022 April 29, 2022 Investments with readily determinable fair value (marketable equity securities) $ 26 $ 64 Investments without readily determinable fair values 770 732 Equity method and other investments 84 85 Total equity and other investments $ 880 $ 881 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 29, 2022 July 30, 2021 Proceeds from sales $ 21 $ 52 Gross gains 15 58 Gross losses (4) (5) Impairment losses recognized (7) (10) |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Jul. 29, 2022 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements Commercial Paper The Company maintains commercial paper programs that allow 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 July 29, 2022 and April 29, 2022. 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-year unsecured revolving credit facility (Credit Facility), which provides back-up funding for the commercial paper programs described above. The Credit Facility includes a multi-currency borrowing feature for certain specified foreign currencies. At July 29, 2022 and April 29, 2022, no amounts were outstanding under the Credit Facility. 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 Company is in compliance with the covenants under the Credit Facility. Debt Obligations The Company's debt obligations consisted of the following: (in millions) Maturity by July 29, 2022 April 29, 2022 Current debt obligations 2023 - 2024 $ 5,729 $ 3,742 Long-term debt 3.500 percent ten-year 2015 senior notes 2025 — 1,890 0.250 percent six-year 2019 senior notes 2026 1,012 1,064 0.000 percent five-year 2020 senior notes 2026 1,012 1,064 1.125 percent eight-year 2019 senior notes 2027 1,518 1,596 3.350 percent ten-year 2019 senior notes 2027 — 368 0.375 percent eight-year 2020 senior notes 2029 1,012 1,064 1.625 percent twelve-year 2019 senior notes 2031 1,012 1,064 1.000 percent twelve-year 2019 senior notes 2032 1,012 1,064 0.750 percent twelve-year 2020 senior notes 2033 1,012 1,064 4.375 percent twenty-year 2015 senior notes 2035 1,932 1,932 6.550 percent thirty-year 2007 CIFSA senior notes 2038 253 253 2.250 percent twenty-year 2019 senior notes 2039 1,012 1,064 6.500 percent thirty-year 2009 senior notes 2039 158 158 1.500 percent twenty-year 2019 senior notes 2040 1,012 1,064 5.550 percent thirty-year 2010 senior notes 2040 224 224 1.375 percent twenty-year 2020 senior notes 2041 1,012 1,064 4.500 percent thirty-year 2012 senior notes 2042 105 105 4.000 percent thirty-year 2013 senior notes 2043 305 305 4.625 percent thirty-year 2014 senior notes 2044 127 127 4.625 percent thirty-year 2015 senior notes 2045 1,813 1,813 1.750 percent thirty-year 2019 senior notes 2050 1,012 1,064 1.625 percent thirty-year 2020 senior notes 2051 1,012 1,064 Finance lease obligations 2023 - 2036 58 56 Deferred financing costs 2023 - 2051 (101) (109) Debt discount, net 2023 - 2051 (40) (52) Long-term debt $ 17,481 $ 20,372 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 Company is in compliance with all covenants related to the Senior Notes. Term Loan Agreements On May 2, 2022, Medtronic Luxco entered into a term loan agreement (Fiscal 2023 Loan Agreement) by and among Medtronic Luxco, Medtronic plc, Medtronic, Inc., and Mizuho Bank, Ltd. as administrative agent and as lender. The Fiscal 2023 Loan Agreement provides an unsecured term loan in an aggregate principal amount of up to ¥300 billion with a term of 364 days. Borrowings under the Fiscal 2023 Loan Agreement bear interest at the TIBOR Rate (as defined in the Fiscal 2023 Loan Agreement) plus a margin of 0.40% per annum. Medtronic plc and Medtronic, Inc. have guaranteed the obligations of Medtronic Luxco under the Fiscal 2023 Loan Agreement. In May and June 2022, Medtronic Luxco borrowed an aggregate of ¥297 billion, or approximately $2.3 billion, of the term loan, under the Fiscal 2023 Loan Agreement. The Company used the net proceeds of the borrowings to fund the early redemption of $1.9 billion of Medtronic Inc.'s 3.500% Senior Notes due 2025 for $1.9 billion of total consideration, and $368 million of Medtronic Luxco's 3.350% Senior Notes due 2027 for $376 million of total consideration. The Company recognized a total loss on debt extinguishment of $53 million in the quarter ended July 29, 2022, which primarily includes cash premiums and accelerated amortization of deferred financing costs and debt discounts and premiums. The loss is recognized in interest expense in the consolidated statements of income. Financial Instruments Not Measured at Fair Value At July 29, 2022, the estimated fair value of the Company’s Senior Notes was $20.1 billion compared to a principal value of $21.1 billion. At April 29, 2022, the estimated fair value was $22.9 billion compared to a principal value of $24.2 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. 29, 2022 | |
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 $17.7 billion and $13.8 billion at July 29, 2022 and April 29, 2022, 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 29, 2022 and April 29, 2022 was $5.1 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 29, 2022 and April 29, 2022 was $212 million and $226 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 or financing activities, depending on the nature of the underlying hedged item, in the consolidated statements of cash flows. 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 29, 2022 and April 29, 2022 was $8.1 billion and $8.8 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 expense, net or cost of products sold in the consolidated statements of income in the same period or periods during which the hedged transaction affects earnings. 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. At July 29, 2022 and April 29, 2022, the Company had $694 million and $474 million in after-tax net unrealized gains, respectively, associated with cash flow hedging instruments recorded in accumulated other comprehensive loss . The Company expects that $510 million of after-tax net unrealized gains at July 29, 2022 will be recognized in the consolidated statements of income over the next 12 months. Net Investment Hedges The Company has designated Euro-denominated and 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 29, 2022, the Company had €16.0 billion, or $16.2 billion, of outstanding Euro-denominated debt designated as a hedge of its net investment in certain of its European operations, and ¥297 billion, or $2.2 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 year s 2023 through 2051, and the Yen-denominated debt will mature in fiscal year 2024. The Company may also use derivative instruments to hedge the currency risk associated with its net investment in foreign operations. Foreign currency forward contracts may be used on a standalone basis or in combination with option collars. At July 29, 2022, the Company had foreign currency contracts with a notional value of €4.5 billion, or $4.6 billion, hedging a portion of its net investment in certain of its European operations. The foreign exchange contracts mature in fiscal years 2024 and 2025. 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 interest expense on a straight-line basis over the term of the hedge. During the three months ended July 29, 2022, the Company recognized $21 million in after-tax unrealized gains representing excluded components in interest expense . 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. Gains and Losses on Hedging Instruments and Derivatives not Designated as Hedging Instruments The amount of the gains and losses on our hedging instruments and the classification of those gains and losses within our consolidated financial statements for the three months ended July 29, 2022 and July 30, 2021 were as follows: (Gain) Loss Recognized in Accumulated Other Comprehensive Loss (Gain) Loss Reclassified into Income Three months ended Three months ended Location of (Gain) Loss in Income Statement (in millions) July 29, 2022 July 30, 2021 July 29, 2022 July 30, 2021 Cash flow hedges Currency exchange rate contracts $ (342) $ (164) $ (137) $ 19 Other operating expense, net Currency exchange rate contracts (34) 4 18 11 Cost of products sold Net investment hedges Non-derivative instruments (945) (424) — — N/A Currency exchange rate contracts (57) — — — N/A Total $ (1,378) $ (584) $ (120) $ 30 The amount of the gains and losses on our derivative instruments not designated as hedging instruments and the classification of those gains and losses within our consolidated financial statements during the three months ended July 29, 2022 and July 30, 2021 were as follows: (Gain) Loss Recognized in Income Three months ended Location of (Gain) Loss in Income Statement (in millions) July 29, 2022 July 30, 2021 Derivatives not designated as hedging instruments Currency exchange rate contracts $ 26 $ (17) Other operating expense, net Total return swaps (1) (13) Other operating expense, net Total $ 25 $ (30) 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 29, 2022 and April 29, 2022. 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. Fair Value - Assets Fair Value - Liabilities (in millions) July 29, 2022 April 29, 2022 Balance Sheet Classification July 29, 2022 April 29, 2022 Balance Sheet Classification Derivatives designated as hedging instruments Currency exchange rate contracts $ 621 $ 481 Other current assets $ 24 $ 43 Other accrued expenses Currency exchange rate contracts 268 168 Other assets 8 16 Other liabilities Total derivatives designated as hedging instruments 889 649 33 60 Derivatives not designated as hedging instruments Currency exchange rate contracts 18 46 Other current assets 20 49 Other accrued expenses Total return swaps — — Other current assets 9 20 Other accrued expenses Total derivatives not designated as hedging instruments 18 46 29 69 Total derivatives $ 907 $ 695 $ 61 $ 129 The following table provides information by level for the derivative assets and liabilities that are measured at fair value on a recurring basis. July 29, 2022 April 29, 2022 (in millions) Derivative assets Derivative Liabilities Derivative assets Derivative Liabilities Level 1 $ 907 $ 53 $ 695 $ 109 Level 2 — 9 — 20 Total $ 907 $ 61 $ 695 $ 129 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 29, 2022 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Cash Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 907 $ (42) $ (531) $ 335 Derivative liabilities: Currency exchange rate contracts (53) 42 — (11) Total return swaps (9) — — (9) (61) 42 — (20) Total $ 845 $ — $ (531) $ 315 April 29, 2022 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Cash Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 695 $ (109) $ (254) $ 332 Derivative liabilities: Currency exchange rate contracts (109) 109 — — Total return swaps (20) — — (20) (129) 109 — (20) Total $ 566 $ — $ (254) $ 312 |
Inventories
Inventories | 3 Months Ended |
Jul. 29, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory balances, net of reserves, were as follows: (in millions) July 29, 2022 April 29, 2022 Finished goods $ 3,145 $ 3,070 Work in-process 739 682 Raw materials 926 864 Total $ 4,809 $ 4,616 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Jul. 29, 2022 | |
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) Cardiovascular Medical Surgical Neuroscience Diabetes Total April 29, 2022 $ 7,160 $ 19,957 $ 11,132 $ 2,254 $ 40,502 Goodwill as a result of acquisitions 66 — 615 — 680 Purchase accounting adjustments (10) — — — (10) Transfer to held for sale — (208) — — (208) Currency translation and other (49) (507) (83) (1) (640) July 29, 2022 $ 7,166 $ 19,242 $ 11,664 $ 2,253 $ 40,324 As a result of the agreement with DaVita, as disclosed in Note 4 to the consolidated financial statements, the Company allocated $208 million of goodwill to the RCS business that met the criteria to be classified as held for sale. Upon allocation, a goodwill impairment test was performed for the RCS business, and the Company recognized $61 million of goodwill impairment during the three months ended July 29, 2022. The goodwill impairment charges are recognized in other operating expense, net in the consolidated statements of income. The Company did not recognize any goodwill impairments during the three months ended July 30, 2021. Intangible Assets The following table presents the gross carrying amount and accumulated amortization of intangible assets: July 29, 2022 April 29, 2022 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 16,927 $ (7,238) $ 16,953 $ (7,005) Purchased technology and patents 11,311 (5,758) 10,802 (5,667) Trademarks and tradenames 485 (268) 473 (266) Other 97 (65) 80 (69) Total $ 28,820 $ (13,328) $ 28,308 $ (13,006) Indefinite-lived: IPR&D $ 283 $ — $ 293 $ — The Company did not recognize any definite-lived intangible asset charges during the three months ended July 29, 2022. During the three months ended July 30, 2021 the Company recognized $409 million of definite-lived intangible asset charges in connection with MCS within the Cardiovascular Portfolio. Refer to Note 5 to the consolidated financial statements for additional information on what led to the impairment. Intangible asset impairment charges are recognized in other operating expense, net in the consolidated statements of income. The Company did not recognize any indefinite-lived intangible asset impairments during the three months ended July 29, 2022 and July 30, 2021. 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 29, 2022 and July 30, 2021 was $423 million and $436 million, respectively. Estimated aggregate amortization expense by fiscal year based on the carrying value of definite-lived intangible assets at July 29, 2022, 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 2023 $ 1,261 2024 1,649 2025 1,627 2026 1,613 2027 1,589 2028 1,539 |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 29, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate for the three months ended July 29, 2022 was 10.7%, as compared to 7.7% for the three months ended July 30, 2021. The increase in our effective tax rate for the three months ended July 29, 2022, was primarily due to the tax impact of MCS charges in the three months ended July 30, 2021, partially offset by a $39 million charge in the three months ended July 30, 2021 related to a change in the Company's permanent reinvestment assertion on certain historical earnings. The increase was also partially offset by a $25 million benefit in the three months ended July 29, 2022 related to a valuation allowance release associated with certain carryover attributes due to the anticipated RCS transaction, as discussed in Note 4 to the consolidated financial statements. At both July 29, 2022 and April 29, 2022, the Company's gross unrecognized tax benefits were $1.7 billion. In addition, the Company had accrued gross interest and penalties of $123 million at July 29, 2022. If all of the Company’s unrecognized tax benefits were recognized, approximately $1.6 billion would impact the Company’s effective tax rate. At July 29, 2022 and April 29, 2022, the amount of the Company's gross unrecognized tax benefits, net of cash advance, recorded as a noncurrent liability within accrued income taxes on the consolidated balance sheets was $889 million and $802 million, respectively. The increase in the Company's gross unrecognized tax benefits, net of cash advance, was primarily due to the decrease in advance payments available to offset unrecognized tax benefits. 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. Subsequent to the quarter close on July 29, 2022, on August 18, 2022 the U.S. Tax Court (Tax Court) issued its opinion on the previously disclosed litigation regarding the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico for fiscal years 2005 and 2006 (Opinion). While the Opinion rejected the IRS’s position and the Tax Court determined the methodology advanced by Medtronic was appropriate for purposes of determining the intercompany royalty rate between Puerto Rico and the U.S., it determined that the royalty rate should be higher, thereby increasing income allocated to the U.S. and consequently subject to U.S. tax. This case relates only to fiscal years 2005 and 2006. The Opinion remains subject to finalization by the Tax Court and to appeal by either or both parties. At this time, the Company is evaluating the impact of the Opinion and whether the Company will appeal. If the Opinion is finalized as is, without appeal by either party, the Company anticipates the findings will likely be applied for all years following fiscal year 2006. Under this potential scenario, the Company has currently estimated a potential income tax charge, including interest, of up to $2.0 billion. 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. 29, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed based on the weighted average number of ordinary shares outstanding. Diluted earnings per share is computed based on the weighted number of ordinary shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive ordinary shares been issued, and reduced by the number of shares the Company could have repurchased 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 29, 2022 July 30, 2021 Numerator: Net income attributable to ordinary shareholders $ 929 $ 763 Denominator: Basic – weighted average shares outstanding 1,329.4 1,344.5 Effect of dilutive securities: Employee stock options 2.7 8.5 Employee restricted stock units 1.3 2.3 Employee performance share units 1.1 1.0 Diluted – weighted average shares outstanding 1,334.5 1,356.4 Basic earnings per share $ 0.70 $ 0.57 Diluted earnings per share $ 0.70 $ 0.56 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jul. 29, 2022 | |
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, performance share units, and employee stock purchase plan shares recognized for the three months ended July 29, 2022 and July 30, 2021: Three months ended (in millions) July 29, 2022 July 30, 2021 Stock options $ 12 $ 10 Restricted stock 27 41 Performance share units 12 6 Employee stock purchase plan 11 11 Total stock-based compensation expense $ 62 $ 69 Cost of products sold $ 6 $ 7 Research and development expense 7 8 Selling, general, and administrative expense 49 55 Total stock-based compensation expense 62 69 Income tax benefits (11) (11) Total stock-based compensation expense, net of tax $ 51 $ 58 |
Retirement Benefit Plans
Retirement Benefit Plans | 3 Months Ended |
Jul. 29, 2022 | |
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 29, 2022 and July 30, 2021: U.S. Non-U.S. Three months ended Three months ended (in millions) July 29, 2022 July 30, 2021 July 29, 2022 July 30, 2021 Service cost $ 19 $ 25 $ 12 $ 16 Interest cost 36 26 10 7 Expected return on plan assets (56) (57) (16) (16) Amortization of net actuarial loss 5 16 1 5 Net periodic benefit cost $ 4 $ 10 $ 7 $ 12 Components of net periodic benefit cost other than the service component are recognized in other non-operating income, net |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jul. 29, 2022 | |
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 Gain (Loss) 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 29, 2022 $ (209) $ (2,599) $ 841 $ (773) $ 474 $ (2,265) Other comprehensive income (loss) before reclassifications (22) (881) 1,002 3 312 414 Reclassifications 6 — — (2) (91) (87) Other comprehensive income (loss) (16) (881) 1,002 1 220 326 July 29, 2022 $ (225) $ (3,480) $ 1,843 $ (772) $ 694 $ (1,939) (in millions) Unrealized Gain (Loss) 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 30, 2021 $ 92 $ (519) $ (1,458) $ (1,347) $ (253) $ (3,485) Other comprehensive income (loss) before reclassifications 14 (353) 424 1 144 230 Reclassifications (2) — — 18 30 46 Other comprehensive income (loss) 12 (353) 424 19 174 276 July 30, 2021 $ 104 $ (872) $ (1,034) $ (1,328) $ (79) $ (3,209) The income tax on gains and losses on investment securities in other comprehensive income before reclassifications during the three months ended July 29, 2022 and July 30, 2021 was a benefit of $9 million and an expense of $2 million, respectively. During the three months ended July 29, 2022, realized gains and losses on investment securities reclassified from AOCI were reduced by income taxes of $2 million. During the three months ended July 30, 2021, there was no income tax on realized gains and losses on investment securities reclassified from AOCI. 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. For the three months ended July 29, 2022, the income tax on cumulative translation adjustment was a benefit of $3 million. During the three months ended July 30, 2021, there was no income tax on cumulative translation adjustment. During the three months ended July 29, 2022 and July 30, 2021, 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 29, 2022 and July 30, 2021, the net change in retirement obligations in other comprehensive income before reclassifications resulted in income tax expense of $1 million. During the three months ended July 29, 2022 and July 30, 2021, the gains and losses on defined benefit and pension items reclassified from AOCI were reduced by income taxes of $6 million and $2 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 29, 2022 and July 30, 2021 was an expense of $64 million and $16 million, respectively. During the three months ended July 29, 2022 and July 30, 2021, gains and losses on cash flow hedges reclassified from AOCI included income taxes of $22 million and were reduced by income taxes of $1 million, respectively. When realized, gains and losses on currency exchange rate contracts reclassified from AOCI are recognized within other operating expense, net or cost of products sold, 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. 29, 2022 | |
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 from time to time involving product liability, employment, 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 certain specified litigation charges and gains related to significant legal matters as certain litigation charges in the consolidated statements of income. The Company recognized no certain litigation charges during the three months ended July 29, 2022, whereas the Company recognized $26 million of certain litigation charges during the three months ended July 30, 2021. At July 29, 2022 and April 29, 2022, accrued litigation was approximately $0.3 billion. 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 3, 2022, 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 Starting in fiscal year 2020, plaintiffs began filing lawsuits against certain subsidiaries of the Company in U.S. state and federal courts that allege personal injury from hernia mesh products sold by those subsidiaries. As of August 10, 2022, subsidiaries of the Company have been named as defendants in lawsuits filed on behalf of approximately 6,050 individual plaintiffs, and certain plaintiffs’ law firms have advised the Company that they may file additional cases in the future. Approximately 5,600 plaintiffs have filed lawsuits in a coordinated proceeding in Massachusetts state court, where they have been consolidated before a single judge. Approximately 350 plaintiffs have filed lawsuits in a coordinated action in Minnesota state court, and there are approximately 90 actions coordinated in a federal Multidistrict Litigation in the U.S. District Court for the District of Massachusetts. The pending lawsuits relate almost entirely 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 and reasonably estimable. 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 which owned and operated a chemical manufacturing facility in Orrington, Maine from 1967 until 1982, and is responsible for the costs of completing an environmental site investigation as required by the Maine Department of Environmental Protection (MDEP). MDEP served a compliance order on Mallinckrodt LLC and U.S. Surgical Corporation, subsidiaries of Covidien, in December 2008, which included a directive to remove a significant volume of soils at the site. After a hearing on the compliance order before the Maine Board of Environmental Protection (Maine Board) to challenge the terms of the compliance order, the Maine Board modified the MDEP order and issued a final order requiring removal of two landfills, capping of the remaining three landfills, installation of a groundwater extraction system and long-term monitoring of the site and the three remaining landfills. The Company has proceeded with remediation 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. In March 2021, the parties notified the court that they had agreed on a settlement in principle of all issues in this matter. Finalization of the proposed settlement remains subject to court approval. The Company's accrued expenses for environmental proceedings are included within accrued litigation as discussed above. 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 in June 2016, issued an opinion with respect to the allocation of income between the parties for fiscal years 2005 and 2006 whereby it generally rejected the IRS’s position, but also made certain modifications to the Medtronic, Inc. tax returns as filed. In April 2017, the IRS filed a Notice of Appeal to the U.S. Court of Appeals for the Eighth Circuit regarding the Tax Court opinion. Oral argument for the Appeal occurred in March 2018. The Court of Appeals issued its opinion in August 2018 and remanded the case back to the Tax Court for additional factual findings, which it concluded in June 2021. The Tax Court issued its opinion on August 18, 2022, and it remains subject to appeal by either or both parties. At this time, the Company is evaluating the impact of the opinion and whether the Company will appeal. The IRS has issued its audit reports on Medtronic, Inc. for fiscal years 2007 through 2016. Medtronic, Inc. and the IRS have reached agreement on all significant issues except for the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico for the businesses that are the subject of the U.S. Tax Court matter for fiscal years 2005 and 2006. Medtronic, Inc.’s fiscal years 2017, 2018, and 2019 U.S. federal income tax returns are currently being audited by the IRS. Covidien LP (a wholly owned subsidiary of Medtronic plc) has either reached agreement with the IRS or the statute of limitations has lapsed on its U.S. federal income tax returns through fiscal year 2018. Although 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 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. 29, 2022 | |
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. 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 29, 2022. 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. There were no changes to the reportable segments during the quarter ended July 29, 2022. The Company's four principal operating and reportable segments are as follows: Cardiovascular Portfolio, Neuroscience Portfolio, Medical Surgical Portfolio, and Diabetes Operating Unit. 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 29, 2022 July 30, 2021 Cardiovascular $ 956 $ 1,161 Medical Surgical 642 914 Neuroscience 815 962 Diabetes 77 133 Segment operating profit 2,490 3,170 Interest expense (164) (137) Other non-operating income, net 83 111 Amortization of intangible assets (423) (436) Corporate (414) (449) Centralized distribution costs (311) (464) Restructuring and associated costs (76) (81) Acquisition-related items (35) (19) Certain litigation charges, net — (26) RCS impairments / costs (74) — MCS impairments / costs — (726) IPR&D charges — (90) Medical device regulations (32) (21) Income before income taxes $ 1,044 $ 833 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 29, 2022 and July 30, 2021 for the Company's country of domicile, countries with significant concentrations, and all other countries: Three months ended (in millions) July 29, 2022 July 30, 2021 Ireland $ 23 $ 26 United States 3,766 4,101 Rest of world 3,582 3,860 Total other countries, excluding Ireland 7,348 7,961 Total $ 7,371 $ 7,987 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jul. 29, 2022 | |
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 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. Amounts reported in millions within this quarterly report are computed based on the amounts in thousands, and therefore, the sum of the components may not equal the total amount reported in millions due to rounding. Additionally, certain columns and rows within tables may not sum due to rounding. |
Fiscal Period | The Company’s fiscal years 2023, 2022, and 2021 will end or ended on April 28, 2023, April 29, 2022, and April 30, 2021, respectively. Fiscal year 2021 was a 53-week year. |
Recently Adopted | Recently Adopted For the three months ended July 29, 2022, there were no newly adopted accounting pronouncements that had a material impact to our consolidated financial statements. As of July 29, 2022, there are no recently issued but not yet adopted accounting pronouncements that are expected to materially impact our consolidated financial statements . |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
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 29, 2022 and July 30, 2021: Three months ended (in millions) July 29, 2022 July 30, 2021 Cardiac Rhythm & Heart Failure $ 1,393 $ 1,483 Structural Heart & Aortic 741 787 Coronary & Peripheral Vascular 579 620 Cardiovascular 2,713 2,890 Surgical Innovations 1,338 1,554 Respiratory, Gastrointestinal, & Renal 664 768 Medical Surgical 2,001 2,322 Cranial & Spinal Technologies 1,043 1,123 Specialty Therapies 667 641 Neuromodulation 405 440 Neuroscience 2,115 2,204 Diabetes 541 572 Total $ 7,371 $ 7,987 The table below illustrates net sales by market geography for each segment for the three months ended July 29, 2022 and July 30, 2021: U.S. (1) Non-U.S. Developed Markets (2) Emerging Markets (3) Three months ended Three months ended Three months ended (in millions) July 29, 2022 July 30, 2021 July 29, 2022 July 30, 2021 July 29, 2022 July 30, 2021 Cardiovascular $ 1,298 $ 1,420 $ 892 $ 1,003 $ 523 $ 467 Medical Surgical 843 990 767 869 392 463 Neuroscience 1,419 1,446 407 465 290 293 Diabetes 206 245 264 263 72 63 Total $ 3,766 $ 4,101 $ 2,328 $ 2,601 $ 1,276 $ 1,286 (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 and Assets and L_2
Acquisitions and Assets and Liabilities Held for Sale (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Fair Value of the Assets Acquired and Liabilities Assumed | The acquisition date fair values of the assets acquired and liabilities assumed were as follows: (in millions) Intersect ENT Cash and cash equivalents $ 39 Inventory 32 Goodwill 615 Other intangible assets 683 Other assets 40 Total assets acquired 1,408 Current liabilities 63 Deferred tax liabilities 51 Other liabilities 18 Total liabilities assumed 131 Net assets acquired $ 1,277 |
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 29, 2022 July 30, 2021 Beginning balance $ 119 $ 270 Purchase price contingent consideration 73 — Purchase price allocation adjustments — 25 Payments — (11) Change in fair value 2 10 Ending balance $ 193 $ 294 |
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 29, 2022 Unobservable Input Range Weighted Average (1) Revenue and other performance-based payments $143 Discount rate 11.2% - 27.2% 15.0% Projected fiscal year of payment 2023 - 2027 2025 Product development and other milestone-based payments $50 Discount rate 5.5% 5.5% Projected fiscal year of payment 2023 - 2024 2023 (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. |
Assets and Liabilities Classified as Held for Sale | The following table presents information related to the assets and liabilities that were classified as held for sale in our consolidated balance sheet: (in millions) July 29, 2022 Inventories, net $ 119 Property, plant, and equipment, net 141 Goodwill 147 Other intangible assets, net 114 Other 48 Total assets held for sale (1) $ 568 Total liabilities held for sale (1)(2) $ 38 (1) Total assets held for sale and total liabilities held for sale are reported in other current assets and other accrued expenses , respectively in the consolidated balance sheets. (2) No separate class of liability classified as held for sale was individually significant enough for separate disclosure. |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the activity related to the restructuring programs above for the three months ended July 29, 2022: (in millions) Employee Termination Benefits Associated Costs (1) Other Total April 29, 2022 $ 81 $ 27 $ 1 $ 110 Charges 23 61 1 85 Cash payments (26) (75) (1) (103) Accrual adjustments (2) (9) — — (9) July 29, 2022 $ 69 $ 13 $ 1 $ 83 (1) Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses. (2) Accrual adjustments relate to certain employees identified for termination finding other positions within the Company. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Investments [Abstract] | |
Investments by Category and Related Balance Sheet Presentation | 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 29, 2022 and April 29, 2022: July 29, 2022 Valuation Balance Sheet Classification (in millions) Cost Unrealized Unrealized Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 532 $ 1 $ (13) $ 520 $ 520 $ — Level 2: Corporate debt securities 4,339 4 (156) 4,186 4,186 — U.S. government and agency securities 928 — (37) 891 891 — Mortgage-backed securities 573 — (38) 535 535 — Non-U.S. government and agency securities 17 — — 17 17 — Certificates of deposit 10 — — 10 10 — Other asset-backed securities 595 — (22) 574 574 — Total Level 2 6,462 4 (253) 6,213 6,213 — Level 3: Auction rate securities 36 — (3) 33 — 33 Total available-for-sale debt securities $ 7,030 $ 5 $ (269) $ 6,767 $ 6,733 $ 33 April 29, 2022 Valuation Balance Sheet Classification (in millions) Cost Unrealized Unrealized Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 533 $ 1 $ (15) $ 518 $ 518 $ — Level 2: Corporate debt securities 4,457 4 (140) 4,321 4,321 — U.S. government and agency securities 910 — (41) 869 869 — Mortgage-backed securities 592 — (35) 558 558 — Non-U.S. government and agency securities 17 — — 17 17 — Certificates of deposit 20 — — 20 20 — Other asset-backed securities 567 — (11) 556 556 — Total Level 2 6,563 4 (227) 6,341 6,341 — Level 3: Auction rate securities 36 — (3) 33 — 33 Total available-for-sale debt securities $ 7,131 $ 5 $ (245) $ 6,893 $ 6,859 $ 33 |
Gross Unrealized Losses and Fair Values of Available-for-sale Securities that Have Been in a Continuous Unrealized Loss Position Deemed to be Temporary, Aggregated by Investment Category | The following tables present the gross unrealized losses and fair values of the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category at July 29, 2022 and April 29, 2022: July 29, 2022 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized Corporate debt securities $ 243 $ (2) $ 3,044 $ (155) U.S. government and agency securities — — 942 (50) Mortgage-backed securities — — 521 (38) Other asset-backed securities — — 532 (22) Auction rate securities — — 33 (3) Total $ 243 $ (2) $ 5,072 $ (267) April 29, 2022 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized Corporate debt securities $ 222 $ (1) $ 2,993 $ (139) U.S. government and agency securities — — 945 (56) Mortgage-backed securities — — 507 (35) Other asset-backed securities — — 526 (11) Auction rate securities — — 33 (3) Total $ 222 $ (1) $ 5,004 $ (244) |
Activity Related to the Company's Available-for-Sale Securities Portfolio | Activity related to the Company’s available-for-sale debt securities portfolio is as follows: Three months ended (in millions) July 29, 2022 July 30, 2021 Proceeds from sales $ 1,864 $ 2,272 Gross realized gains 1 4 Gross realized losses (9) (2) |
Available-For-Sale Debt Securities, Contractual Maturities | The July 29, 2022 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 29, 2022 Due in one year or less $ 1,378 Due after one year through five years 3,597 Due after five years through ten years 1,102 Due after ten years 690 Total $ 6,767 |
Summary of Equity and Other Investments | The following table summarizes the Company's equity and other investments at July 29, 2022 and April 29, 2022, which are classified as other assets in the consolidated balance sheets: (in millions) July 29, 2022 April 29, 2022 Investments with readily determinable fair value (marketable equity securities) $ 26 $ 64 Investments without readily determinable fair values 770 732 Equity method and other investments 84 85 Total equity and other investments $ 880 $ 881 |
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 29, 2022 July 30, 2021 Proceeds from sales $ 21 $ 52 Gross gains 15 58 Gross losses (4) (5) Impairment losses recognized (7) (10) |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | The Company's debt obligations consisted of the following: (in millions) Maturity by July 29, 2022 April 29, 2022 Current debt obligations 2023 - 2024 $ 5,729 $ 3,742 Long-term debt 3.500 percent ten-year 2015 senior notes 2025 — 1,890 0.250 percent six-year 2019 senior notes 2026 1,012 1,064 0.000 percent five-year 2020 senior notes 2026 1,012 1,064 1.125 percent eight-year 2019 senior notes 2027 1,518 1,596 3.350 percent ten-year 2019 senior notes 2027 — 368 0.375 percent eight-year 2020 senior notes 2029 1,012 1,064 1.625 percent twelve-year 2019 senior notes 2031 1,012 1,064 1.000 percent twelve-year 2019 senior notes 2032 1,012 1,064 0.750 percent twelve-year 2020 senior notes 2033 1,012 1,064 4.375 percent twenty-year 2015 senior notes 2035 1,932 1,932 6.550 percent thirty-year 2007 CIFSA senior notes 2038 253 253 2.250 percent twenty-year 2019 senior notes 2039 1,012 1,064 6.500 percent thirty-year 2009 senior notes 2039 158 158 1.500 percent twenty-year 2019 senior notes 2040 1,012 1,064 5.550 percent thirty-year 2010 senior notes 2040 224 224 1.375 percent twenty-year 2020 senior notes 2041 1,012 1,064 4.500 percent thirty-year 2012 senior notes 2042 105 105 4.000 percent thirty-year 2013 senior notes 2043 305 305 4.625 percent thirty-year 2014 senior notes 2044 127 127 4.625 percent thirty-year 2015 senior notes 2045 1,813 1,813 1.750 percent thirty-year 2019 senior notes 2050 1,012 1,064 1.625 percent thirty-year 2020 senior notes 2051 1,012 1,064 Finance lease obligations 2023 - 2036 58 56 Deferred financing costs 2023 - 2051 (101) (109) Debt discount, net 2023 - 2051 (40) (52) Long-term debt $ 17,481 $ 20,372 |
Derivatives and Currency Exch_2
Derivatives and Currency Exchange Risk Management (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gains and Losses on Derivative Instruments | The amount of the gains and losses on our hedging instruments and the classification of those gains and losses within our consolidated financial statements for the three months ended July 29, 2022 and July 30, 2021 were as follows: (Gain) Loss Recognized in Accumulated Other Comprehensive Loss (Gain) Loss Reclassified into Income Three months ended Three months ended Location of (Gain) Loss in Income Statement (in millions) July 29, 2022 July 30, 2021 July 29, 2022 July 30, 2021 Cash flow hedges Currency exchange rate contracts $ (342) $ (164) $ (137) $ 19 Other operating expense, net Currency exchange rate contracts (34) 4 18 11 Cost of products sold Net investment hedges Non-derivative instruments (945) (424) — — N/A Currency exchange rate contracts (57) — — — N/A Total $ (1,378) $ (584) $ (120) $ 30 The amount of the gains and losses on our derivative instruments not designated as hedging instruments and the classification of those gains and losses within our consolidated financial statements during the three months ended July 29, 2022 and July 30, 2021 were as follows: (Gain) Loss Recognized in Income Three months ended Location of (Gain) Loss in Income Statement (in millions) July 29, 2022 July 30, 2021 Derivatives not designated as hedging instruments Currency exchange rate contracts $ 26 $ (17) Other operating expense, net Total return swaps (1) (13) Other operating expense, net Total $ 25 $ (30) |
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 29, 2022 and April 29, 2022. 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. Fair Value - Assets Fair Value - Liabilities (in millions) July 29, 2022 April 29, 2022 Balance Sheet Classification July 29, 2022 April 29, 2022 Balance Sheet Classification Derivatives designated as hedging instruments Currency exchange rate contracts $ 621 $ 481 Other current assets $ 24 $ 43 Other accrued expenses Currency exchange rate contracts 268 168 Other assets 8 16 Other liabilities Total derivatives designated as hedging instruments 889 649 33 60 Derivatives not designated as hedging instruments Currency exchange rate contracts 18 46 Other current assets 20 49 Other accrued expenses Total return swaps — — Other current assets 9 20 Other accrued expenses Total derivatives not designated as hedging instruments 18 46 29 69 Total derivatives $ 907 $ 695 $ 61 $ 129 |
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 29, 2022 April 29, 2022 (in millions) Derivative assets Derivative Liabilities Derivative assets Derivative Liabilities Level 1 $ 907 $ 53 $ 695 $ 109 Level 2 — 9 — 20 Total $ 907 $ 61 $ 695 $ 129 |
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 29, 2022 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Cash Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 907 $ (42) $ (531) $ 335 Derivative liabilities: Currency exchange rate contracts (53) 42 — (11) Total return swaps (9) — — (9) (61) 42 — (20) Total $ 845 $ — $ (531) $ 315 April 29, 2022 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Cash Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 695 $ (109) $ (254) $ 332 Derivative liabilities: Currency exchange rate contracts (109) 109 — — Total return swaps (20) — — (20) (129) 109 — (20) Total $ 566 $ — $ (254) $ 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 29, 2022 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Cash Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 907 $ (42) $ (531) $ 335 Derivative liabilities: Currency exchange rate contracts (53) 42 — (11) Total return swaps (9) — — (9) (61) 42 — (20) Total $ 845 $ — $ (531) $ 315 April 29, 2022 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recognized Assets (Liabilities) Financial Instruments Cash Collateral (Received) Posted Net Amount Derivative assets: Currency exchange rate contracts $ 695 $ (109) $ (254) $ 332 Derivative liabilities: Currency exchange rate contracts (109) 109 — — Total return swaps (20) — — (20) (129) 109 — (20) Total $ 566 $ — $ (254) $ 312 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory Balances | Inventory balances, net of reserves, were as follows: (in millions) July 29, 2022 April 29, 2022 Finished goods $ 3,145 $ 3,070 Work in-process 739 682 Raw materials 926 864 Total $ 4,809 $ 4,616 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
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) Cardiovascular Medical Surgical Neuroscience Diabetes Total April 29, 2022 $ 7,160 $ 19,957 $ 11,132 $ 2,254 $ 40,502 Goodwill as a result of acquisitions 66 — 615 — 680 Purchase accounting adjustments (10) — — — (10) Transfer to held for sale — (208) — — (208) Currency translation and other (49) (507) (83) (1) (640) July 29, 2022 $ 7,166 $ 19,242 $ 11,664 $ 2,253 $ 40,324 |
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 29, 2022 April 29, 2022 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 16,927 $ (7,238) $ 16,953 $ (7,005) Purchased technology and patents 11,311 (5,758) 10,802 (5,667) Trademarks and tradenames 485 (268) 473 (266) Other 97 (65) 80 (69) Total $ 28,820 $ (13,328) $ 28,308 $ (13,006) Indefinite-lived: IPR&D $ 283 $ — $ 293 $ — |
Gross Carrying Amount of Indefinite-Lived Intangible Assets | The following table presents the gross carrying amount and accumulated amortization of intangible assets: July 29, 2022 April 29, 2022 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 16,927 $ (7,238) $ 16,953 $ (7,005) Purchased technology and patents 11,311 (5,758) 10,802 (5,667) Trademarks and tradenames 485 (268) 473 (266) Other 97 (65) 80 (69) Total $ 28,820 $ (13,328) $ 28,308 $ (13,006) Indefinite-lived: IPR&D $ 283 $ — $ 293 $ — |
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 29, 2022, 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 2023 $ 1,261 2024 1,649 2025 1,627 2026 1,613 2027 1,589 2028 1,539 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
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 29, 2022 July 30, 2021 Numerator: Net income attributable to ordinary shareholders $ 929 $ 763 Denominator: Basic – weighted average shares outstanding 1,329.4 1,344.5 Effect of dilutive securities: Employee stock options 2.7 8.5 Employee restricted stock units 1.3 2.3 Employee performance share units 1.1 1.0 Diluted – weighted average shares outstanding 1,334.5 1,356.4 Basic earnings per share $ 0.70 $ 0.57 Diluted earnings per share $ 0.70 $ 0.56 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
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, performance share units, and employee stock purchase plan shares recognized for the three months ended July 29, 2022 and July 30, 2021: Three months ended (in millions) July 29, 2022 July 30, 2021 Stock options $ 12 $ 10 Restricted stock 27 41 Performance share units 12 6 Employee stock purchase plan 11 11 Total stock-based compensation expense $ 62 $ 69 Cost of products sold $ 6 $ 7 Research and development expense 7 8 Selling, general, and administrative expense 49 55 Total stock-based compensation expense 62 69 Income tax benefits (11) (11) Total stock-based compensation expense, net of tax $ 51 $ 58 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
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 29, 2022 and July 30, 2021: U.S. Non-U.S. Three months ended Three months ended (in millions) July 29, 2022 July 30, 2021 July 29, 2022 July 30, 2021 Service cost $ 19 $ 25 $ 12 $ 16 Interest cost 36 26 10 7 Expected return on plan assets (56) (57) (16) (16) Amortization of net actuarial loss 5 16 1 5 Net periodic benefit cost $ 4 $ 10 $ 7 $ 12 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Equity [Abstract] | |
Changes in AOCI by Component | The following table provides changes in AOCI, net of tax, and by component: (in millions) Unrealized Gain (Loss) 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 29, 2022 $ (209) $ (2,599) $ 841 $ (773) $ 474 $ (2,265) Other comprehensive income (loss) before reclassifications (22) (881) 1,002 3 312 414 Reclassifications 6 — — (2) (91) (87) Other comprehensive income (loss) (16) (881) 1,002 1 220 326 July 29, 2022 $ (225) $ (3,480) $ 1,843 $ (772) $ 694 $ (1,939) (in millions) Unrealized Gain (Loss) 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 30, 2021 $ 92 $ (519) $ (1,458) $ (1,347) $ (253) $ (3,485) Other comprehensive income (loss) before reclassifications 14 (353) 424 1 144 230 Reclassifications (2) — — 18 30 46 Other comprehensive income (loss) 12 (353) 424 19 174 276 July 30, 2021 $ 104 $ (872) $ (1,034) $ (1,328) $ (79) $ (3,209) |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
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 29, 2022 July 30, 2021 Cardiovascular $ 956 $ 1,161 Medical Surgical 642 914 Neuroscience 815 962 Diabetes 77 133 Segment operating profit 2,490 3,170 Interest expense (164) (137) Other non-operating income, net 83 111 Amortization of intangible assets (423) (436) Corporate (414) (449) Centralized distribution costs (311) (464) Restructuring and associated costs (76) (81) Acquisition-related items (35) (19) Certain litigation charges, net — (26) RCS impairments / costs (74) — MCS impairments / costs — (726) IPR&D charges — (90) Medical device regulations (32) (21) Income before income taxes $ 1,044 $ 833 |
Net Sales to External Customers by Geography | The following table presents net sales for the three months ended July 29, 2022 and July 30, 2021 for the Company's country of domicile, countries with significant concentrations, and all other countries: Three months ended (in millions) July 29, 2022 July 30, 2021 Ireland $ 23 $ 26 United States 3,766 4,101 Rest of world 3,582 3,860 Total other countries, excluding Ireland 7,348 7,961 Total $ 7,371 $ 7,987 |
Revenue - Disaggregation of Net
Revenue - Disaggregation of Net Sales by Segment and Division (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 7,371 | $ 7,987 |
Cardiovascular | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,713 | 2,890 |
Cardiovascular | Cardiac Rhythm & Heart Failure | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,393 | 1,483 |
Cardiovascular | Structural Heart & Aortic | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 741 | 787 |
Cardiovascular | Coronary & Peripheral Vascular | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 579 | 620 |
Medical Surgical | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,001 | 2,322 |
Medical Surgical | Surgical Innovations | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,338 | 1,554 |
Medical Surgical | Respiratory, Gastrointestinal, & Renal | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 664 | 768 |
Neuroscience | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,115 | 2,204 |
Neuroscience | Cranial & Spinal Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,043 | 1,123 |
Neuroscience | Specialty Therapies | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 667 | 641 |
Neuroscience | Neuromodulation | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 405 | 440 |
Diabetes | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 541 | $ 572 |
Revenue - Disaggregation of N_2
Revenue - Disaggregation of Net Sales by Market Geography for Each Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 7,371 | $ 7,987 |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 3,766 | 4,101 |
Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,328 | 2,601 |
Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,276 | 1,286 |
Cardiovascular | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,713 | 2,890 |
Cardiovascular | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,298 | 1,420 |
Cardiovascular | Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 892 | 1,003 |
Cardiovascular | Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 523 | 467 |
Medical Surgical | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,001 | 2,322 |
Medical Surgical | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 843 | 990 |
Medical Surgical | Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 767 | 869 |
Medical Surgical | Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 392 | 463 |
Neuroscience | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,115 | 2,204 |
Neuroscience | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,419 | 1,446 |
Neuroscience | Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 407 | 465 |
Neuroscience | Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 290 | 293 |
Diabetes | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 541 | 572 |
Diabetes | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 206 | 245 |
Diabetes | Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 264 | 263 |
Diabetes | Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 72 | $ 63 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Apr. 29, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 391 | $ 399 |
Revenue recognized that was previously included in deferred revenue | 87 | |
Estimated revenue expected to be recognized in future periods related to unsatisfied performance obligations | $ 801 | |
Period over which remaining performance obligations are expected to be recognized as revenue | three years | |
Other accrued expenses | ||
Disaggregation of Revenue [Line Items] | ||
Rebate obligations | $ 955 | 981 |
Deferred revenue | 302 | 305 |
Reduction of accounts receivable | ||
Disaggregation of Revenue [Line Items] | ||
Rebate obligations | 576 | 548 |
Other liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 90 | $ 94 |
Acquisitions and Assets and L_3
Acquisitions and Assets and Liabilities Held for Sale - Narrative (Details) - USD ($) | 3 Months Ended | |||||
Aug. 30, 2022 | May 13, 2022 | Jul. 29, 2022 | Jul. 30, 2021 | Apr. 29, 2022 | Apr. 30, 2021 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 40,324,000,000 | $ 40,502,000,000 | ||||
Purchase price contingent consideration | 73,000,000 | $ 0 | ||||
Contingent consideration, fair value | 193,000,000 | 294,000,000 | 119,000,000 | $ 270,000,000 | ||
Goodwill impairment | 0 | |||||
Other operating expense, net | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill impairment | 67,000,000 | |||||
IPR&D | ||||||
Business Acquisition [Line Items] | ||||||
Asset acquisition | $ 90,000,000 | |||||
Other accrued expenses | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration, fair value | 64,000,000 | 35,000,000 | ||||
Other liabilities | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration, fair value | 129,000,000 | $ 84,000,000 | ||||
Intersect ENT | ||||||
Business Acquisition [Line Items] | ||||||
Shares price (in dollars per share) | $ 28.25 | |||||
Total consideration for the transaction, net of cash acquired | $ 1,200,000,000 | |||||
Cash consideration | 1,100,000,000 | |||||
Previously held investments in Intersect ENT | 98,000,000 | |||||
Goodwill | 615,000,000 | |||||
Net assets acquired | $ 1,277,000,000 | |||||
Estimated useful life (in years) | 20 years | |||||
Intersect ENT | Technology-Based Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | $ 635,000,000 | |||||
Intersect ENT | Customer-related | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | 35,000,000 | |||||
Intersect ENT | Tradenames | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | $ 13,000,000 | |||||
Other acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 66,000,000 | |||||
Net assets acquired | 123,000,000 | |||||
Purchase price contingent consideration | 73,000,000 | |||||
Other acquisitions | Technology-Based Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | $ 57,000,000 | |||||
Estimated useful life (in years) | 16 years | |||||
Affera Inc | Subsequent event | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration for the transaction, net of cash acquired | $ 1,000,000,000 | |||||
Contingent consideration, fair value | $ 250,000,000 |
Acquisitions and Assets and L_4
Acquisitions and Assets and Liabilities Held for Sale - Schedule of Fair Value of the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jul. 29, 2022 | May 13, 2022 | Apr. 29, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 40,324 | $ 40,502 | |
Intersect ENT | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 39 | ||
Inventory | 32 | ||
Goodwill | 615 | ||
Other intangible assets | 683 | ||
Other assets | 40 | ||
Total assets acquired | 1,408 | ||
Current liabilities | 63 | ||
Deferred tax liabilities | 51 | ||
Other liabilities | 18 | ||
Total liabilities assumed | 131 | ||
Net assets acquired | $ 1,277 |
Acquisitions and Assets and L_5
Acquisitions and Assets and Liabilities Held for Sale - Reconciliation of Beginning and Ending Balances of Contingent Consideration (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments [Roll Forward] | ||
Beginning balance | $ 119 | $ 270 |
Purchase price contingent consideration | 73 | 0 |
Purchase price allocation adjustments | 0 | 25 |
Payments | 0 | (11) |
Change in fair value | 2 | 10 |
Ending balance | $ 193 | $ 294 |
Acquisitions and Assets and L_6
Acquisitions and Assets and Liabilities Held for Sale - Fair Value Measurement, Contingent Consideration, Significant Unobservable Inputs (Details) $ in Millions | Jul. 29, 2022 USD ($) | Apr. 29, 2022 USD ($) | Jul. 30, 2021 USD ($) | Apr. 30, 2021 USD ($) |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Contingent consideration, fair value | $ 193 | $ 119 | $ 294 | $ 270 |
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 | $ 143 | |||
Revenue and other performance-based payments | Minimum | Recurring | Level 3 | Discount rate | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.112 | |||
Revenue and other performance-based payments | Maximum | Recurring | Level 3 | Discount rate | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.272 | |||
Revenue and other performance-based payments | Weighted Average | Recurring | Level 3 | Discount rate | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.150 | |||
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 | $ 50 | |||
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 | Weighted Average | Recurring | Level 3 | Discount rate | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.055 |
Acquisitions and Assets and L_7
Acquisitions and Assets and Liabilities Held for Sale- Assets And Liabilities Classified As Held For Sale (Details) - Held For Sale - Disposal group, held-for-sale, not discontinued operations $ in Millions | Jul. 29, 2022 USD ($) |
Business Acquisition [Line Items] | |
Inventory | $ 119 |
Property, plant, and equipment, net | 141 |
Goodwill | 147 |
Other intangible assets | 114 |
Other assets | 48 |
Total assets acquired | 568 |
Total liabilities assumed | $ 38 |
Restructuring and Other Costs -
Restructuring and Other Costs - Narrative (Details) | 3 Months Ended | ||
Jul. 29, 2022 USD ($) | Jul. 30, 2021 USD ($) | Jun. 03, 2021 patient | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | $ 14,000,000 | $ 11,000,000 | |
Restructuring charges | 85,000,000 | ||
MCS asset impairment and inventory write-down | 0 | 515,000,000 | |
Definite-lived intangible asset charges | 0 | 409,000,000 | |
Enterprise Excellence | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | 40,000,000 | 74,000,000 | |
Enterprise Excellence | Cost of products sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 19,000,000 | 33,000,000 | |
Enterprise Excellence | Selling, general, and administrative expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 28,000,000 | 30,000,000 | |
Enterprise Excellence | Pre-tax exit and disposal costs and other | |||
Restructuring Cost and Reserve [Line Items] | |||
Cost incurred to date | 1,600,000,000 | ||
Expected cost | 1,800,000,000 | ||
Simplification | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | 36,000,000 | 7,000,000 | |
Simplification | Selling, general, and administrative expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | 13,000,000 | ||
Simplification | Pre-tax exit and disposal costs and other | |||
Restructuring Cost and Reserve [Line Items] | |||
Cost incurred to date | 385,000,000 | ||
Expected cost | 450,000,000 | ||
Mechanical Circulatory Support | Cardiovascular | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring write down and impairment provisions | 726,000,000 | ||
MCS asset impairment and inventory write-down | 515,000,000 | ||
Definite-lived intangible asset charges | 409,000,000 | ||
Inventory write-down | 58,000,000 | ||
Other restructuring costs | 211,000,000 | ||
Restructuring reserve, current | 81,000,000 | ||
Restructuring reserve, noncurrent | 136,000,000 | ||
Number of mechanical circulatory support patients (in patients) | patient | 3,200 | ||
Mechanical Circulatory Support | Cost of products sold | Cardiovascular | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring write down and impairment provisions | 58,000,000 | ||
Mechanical Circulatory Support | Other operating expense, net | Cardiovascular | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 155,000,000 | ||
Restructuring write down and impairment provisions | $ 668,000,000 |
Restructuring and Other Costs_2
Restructuring and Other Costs - Activity Related to Restructuring Programs (Details) $ in Millions | 3 Months Ended |
Jul. 29, 2022 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 110 |
Restructuring charges | 85 |
Payments for Restructuring | (103) |
Accrual adjustments | (9) |
Ending balance | 83 |
Employee Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 81 |
Restructuring charges | 23 |
Payments for Restructuring | (26) |
Accrual adjustments | (9) |
Ending balance | 69 |
Associated Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 27 |
Restructuring charges | 61 |
Payments for Restructuring | (75) |
Accrual adjustments | 0 |
Ending balance | 13 |
Other Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 1 |
Restructuring charges | 1 |
Payments for Restructuring | (1) |
Accrual adjustments | 0 |
Ending balance | $ 1 |
Financial Instruments - Investm
Financial Instruments - Investments by Category and Related Balance Sheet Classification (Details) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Schedule of Investments [Line Items] | ||
Cost | $ 7,030 | $ 7,131 |
Unrealized Gains | 5 | 5 |
Unrealized Losses | (269) | (245) |
Fair Value | 6,767 | 6,893 |
Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 6,733 | 6,859 |
Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 33 | 33 |
Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 6,462 | 6,563 |
Unrealized Gains | 4 | 4 |
Unrealized Losses | (253) | (227) |
Fair Value | 6,213 | 6,341 |
Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 6,213 | 6,341 |
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 | 532 | 533 |
Unrealized Gains | 1 | 1 |
Unrealized Losses | (13) | (15) |
Fair Value | 520 | 518 |
U.S. government and agency securities | Level 1 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 520 | 518 |
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 | 928 | 910 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (37) | (41) |
Fair Value | 891 | 869 |
U.S. government and agency securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 891 | 869 |
U.S. government and agency securities | Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Corporate debt securities | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 4,339 | 4,457 |
Unrealized Gains | 4 | 4 |
Unrealized Losses | (156) | (140) |
Fair Value | 4,186 | 4,321 |
Corporate debt securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 4,186 | 4,321 |
Corporate debt 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 | 573 | 592 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (38) | (35) |
Fair Value | 535 | 558 |
Mortgage-backed securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 535 | 558 |
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 | 17 | 17 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 17 | 17 |
Non-U.S. government and agency securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 17 | 17 |
Non-U.S. government and agency securities | Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Certificates of deposit | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 10 | 20 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 10 | 20 |
Certificates of deposit | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 10 | 20 |
Certificates of deposit | 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 | 595 | 567 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (22) | (11) |
Fair Value | 574 | 556 |
Other asset-backed securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 574 | 556 |
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 | (3) | (3) |
Fair Value | 33 | 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 | $ 33 | $ 33 |
Financial Instruments - Availab
Financial Instruments - Available-For-Sale Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Fair Value | ||
Less than 12 months | $ 243 | $ 222 |
More than 12 months | 5,072 | 5,004 |
Unrealized Losses | ||
Less than 12 months | (2) | (1) |
More than 12 months | (267) | (244) |
Corporate debt securities | ||
Fair Value | ||
Less than 12 months | 243 | 222 |
More than 12 months | 3,044 | 2,993 |
Unrealized Losses | ||
Less than 12 months | (2) | (1) |
More than 12 months | (155) | (139) |
U.S. government and agency securities | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
More than 12 months | 942 | 945 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
More than 12 months | (50) | (56) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
More than 12 months | 521 | 507 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
More than 12 months | (38) | (35) |
Other asset-backed securities | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
More than 12 months | 532 | 526 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
More than 12 months | (22) | (11) |
Auction rate securities | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
More than 12 months | 33 | 33 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
More than 12 months | $ (3) | $ (3) |
Financial Instruments - Activit
Financial Instruments - Activity Related to the Company's Investment Portfolio and Debt Securities Contractual Maturities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 29, 2022 | Jul. 30, 2021 | Apr. 29, 2022 | |
Activities Related to Debt Securities Portfolio | |||
Proceeds from sales | $ 1,864 | $ 2,272 | |
Gross realized gains | 1 | 4 | |
Gross realized losses | (9) | $ (2) | |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | |||
Due in one year or less | 1,378 | ||
Due after one year through five years | 3,597 | ||
Due after five years through ten years | 1,102 | ||
Due after ten years | 690 | ||
Total | $ 6,767 | $ 6,893 |
Financial Instruments - Summary
Financial Instruments - Summary of Equity and Other Investments (Details) - Other Assets - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Investments with readily determinable fair value (marketable equity securities) | $ 26 | $ 64 |
Investments without readily determinable fair values | 770 | 732 |
Equity method and other investments | 84 | 85 |
Total equity and other investments | $ 880 | $ 881 |
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. 29, 2022 | Jul. 30, 2021 | |
Marketable Securities [Line Items] | ||
Proceeds from sales | $ 1,886 | $ 2,324 |
Equity and Other Investments | ||
Marketable Securities [Line Items] | ||
Proceeds from sales | 21 | 52 |
Gross gains | 15 | 58 |
Gross losses | (4) | (5) |
Impairment losses recognized | $ (7) | $ (10) |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Equity Securities and Other Investments | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on equity and other investments still held | $ 8 | $ 15 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) ¥ in Billions | 3 Months Ended | |||||
May 02, 2022 USD ($) | May 02, 2022 JPY (¥) | Jul. 29, 2022 USD ($) | Jul. 30, 2021 USD ($) | May 02, 2022 JPY (¥) | Apr. 29, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||
Amount of current debt obligations outstanding | $ 5,729,000,000 | $ 3,742,000,000 | ||||
Principal value | 21,100,000,000 | 24,200,000,000 | ||||
Proceeds from short-term debt | 2,284,000,000 | $ 0 | ||||
Loss on debt extinguishment | 53,000,000 | $ 0 | ||||
Total debt, fair value | 20,100,000,000 | 22,900,000,000 | ||||
Commercial Paper | ||||||
Debt Instrument [Line Items] | ||||||
Amount of current debt obligations outstanding | 0 | 0 | ||||
Term loan agreement | Medtronic Luxco | ||||||
Debt Instrument [Line Items] | ||||||
Term of debt instrument | 364 days | 364 days | ||||
Principal value | ¥ | ¥ 300 | |||||
Proceeds from short-term debt | $ 2,300,000,000 | ¥ 297 | ||||
Repayments of debt | $ 376,000,000 | |||||
Loss on debt extinguishment | 53,000,000 | |||||
Term loan agreement | Medtronic Luxco | TIBOR Rate | ||||||
Debt Instrument [Line Items] | ||||||
Margin added to variable rate | 0.40% | 0.40% | ||||
Commercial Paper Program | Commercial Paper | ||||||
Debt Instrument [Line Items] | ||||||
Commercial paper, maximum borrowing amount | 3,500,000,000 | |||||
Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, maximum capacity | $ 3,500,000,000 | |||||
Term of debt instrument | 5 years | |||||
Line of credit, amount outstanding | $ 0 | 0 | ||||
3.500 percent ten-year 2015 senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Term of debt instrument | 10 years | |||||
Stated interest rate | 3.50% | 3.50% | 3.50% | |||
3.500 percent ten-year 2015 senior notes | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Repurchased face amount | $ 1,900,000,000 | |||||
Repayments of debt | $ 1,900,000,000 | |||||
Long-term debt, gross | $ 0 | 1,890,000,000 | ||||
3.350 percent ten-year 2019 senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Term of debt instrument | 10 years | |||||
Stated interest rate | 3.35% | 3.35% | 3.35% | |||
3.350 percent ten-year 2019 senior notes | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Repurchased face amount | $ 368,000,000 | |||||
Long-term debt, gross | $ 0 | $ 368,000,000 |
Financing Arrangements - Long-T
Financing Arrangements - Long-Term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jul. 29, 2022 | May 02, 2022 | Apr. 29, 2022 | Jul. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Current debt obligations | $ 5,729 | $ 3,742 | ||
Long-term debt | ||||
Finance lease obligations | 58 | $ 56 | ||
Deferred financing costs | (101) | (109) | ||
Debt discount, net | (40) | (52) | ||
Long-term debt | $ 17,481 | 20,372 | ||
3.500 percent ten-year 2015 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 3.50% | 3.50% | ||
Term of debt instrument | 10 years | |||
0.250 percent six-year 2019 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 0.25% | |||
Term of debt instrument | 6 years | |||
0.000 percent five-year 2020 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 0% | |||
Term of debt instrument | 5 years | |||
1.125 percent eight-year 2019 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 1.125% | |||
Term of debt instrument | 8 years | |||
3.350 percent ten-year 2019 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 3.35% | 3.35% | ||
Term of debt instrument | 10 years | |||
0.375 percent eight-year 2020 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 0.375% | |||
Term of debt instrument | 8 years | |||
0.375 percent eight-year 2020 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 1.625% | |||
Term of debt instrument | 12 years | |||
1.000 percent twelve-year 2019 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 1% | |||
Term of debt instrument | 12 years | |||
0.750 percent twelve-year 2020 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 0.75% | |||
Term of debt instrument | 12 years | |||
4.375 percent twenty-year 2015 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 4.375% | |||
Term of debt instrument | 20 years | |||
6.550 percent thirty-year 2007 CIFSA senior notes | ||||
Long-term debt | ||||
Stated interest rate | 6.55% | |||
Term of debt instrument | 30 years | |||
2.250 percent twenty-year 2019 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 2.25% | |||
Term of debt instrument | 20 years | |||
6.500 percent thirty-year 2009 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 6.50% | |||
Term of debt instrument | 30 years | |||
1.500 percent twenty-year 2019 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 1.50% | |||
Term of debt instrument | 20 years | |||
5.550 percent thirty-year 2010 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 5.55% | |||
Term of debt instrument | 30 years | |||
1.375 percent twenty-year 2020 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 1.375% | |||
Term of debt instrument | 20 years | |||
4.500 percent thirty-year 2012 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 4.50% | |||
Term of debt instrument | 30 years | |||
4.000 percent thirty-year 2013 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 4% | |||
Term of debt instrument | 30 years | |||
4.625 percent thirty-year 2014 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 4.625% | |||
Term of debt instrument | 30 years | |||
4.625 percent thirty-year 2015 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 4.625% | |||
Term of debt instrument | 30 years | |||
1.750 percent thirty-year 2019 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 1.75% | |||
Term of debt instrument | 30 years | |||
1.625 percent thirty-year 2020 senior notes | ||||
Long-term debt | ||||
Stated interest rate | 1.625% | |||
Term of debt instrument | 30 years | |||
Senior notes | 3.500 percent ten-year 2015 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | $ 0 | 1,890 | ||
Senior notes | 0.250 percent six-year 2019 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 1,012 | 1,064 | ||
Senior notes | 0.000 percent five-year 2020 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 1,012 | 1,064 | ||
Senior notes | 1.125 percent eight-year 2019 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 1,518 | 1,596 | ||
Senior notes | 3.350 percent ten-year 2019 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 0 | 368 | ||
Senior notes | 0.375 percent eight-year 2020 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 1,012 | 1,064 | ||
Senior notes | 0.375 percent eight-year 2020 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 1,012 | 1,064 | ||
Senior notes | 1.000 percent twelve-year 2019 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 1,012 | 1,064 | ||
Senior notes | 0.750 percent twelve-year 2020 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 1,012 | 1,064 | ||
Senior notes | 4.375 percent twenty-year 2015 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 1,932 | 1,932 | ||
Senior notes | 6.550 percent thirty-year 2007 CIFSA senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 253 | 253 | ||
Senior notes | 2.250 percent twenty-year 2019 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 1,012 | 1,064 | ||
Senior notes | 6.500 percent thirty-year 2009 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 158 | 158 | ||
Senior notes | 1.500 percent twenty-year 2019 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 1,012 | 1,064 | ||
Senior notes | 5.550 percent thirty-year 2010 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 224 | 224 | ||
Senior notes | 1.375 percent twenty-year 2020 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 1,012 | 1,064 | ||
Senior notes | 4.500 percent thirty-year 2012 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 105 | 105 | ||
Senior notes | 4.000 percent thirty-year 2013 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 305 | 305 | ||
Senior notes | 4.625 percent thirty-year 2014 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 127 | 127 | ||
Senior notes | 4.625 percent thirty-year 2015 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 1,813 | 1,813 | ||
Senior notes | 1.750 percent thirty-year 2019 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | 1,012 | 1,064 | ||
Senior notes | 1.625 percent thirty-year 2020 senior notes | ||||
Long-term debt | ||||
Long-term debt, gross | $ 1,012 | $ 1,064 |
Derivatives and Currency Exch_3
Derivatives and Currency Exchange Risk Management - Narrative (Details) $ in Millions, € in Billions, ¥ in Billions | 3 Months Ended | |||
Jul. 29, 2022 USD ($) | Jul. 29, 2022 EUR (€) | Jul. 29, 2022 JPY (¥) | Apr. 29, 2022 USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
After-tax net unrealized gains (losses) associated with cash flow hedging instruments recorded in AOCI | $ 694 | $ 474 | ||
Cash flow hedge unrealized gains to be reclassified over the next 12 months | 510 | |||
Derivative, excluded component, gain (loss), recognized in earnings | 21 | |||
Currency exchange rate contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gross notional amount | 17,700 | 13,800 | ||
Currency exchange rate contracts | Derivatives not designated as hedging instruments | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gross notional amount | 5,100 | 4,900 | ||
Currency exchange rate contracts | Derivatives designated as hedging instruments | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gross notional amount | € | € 4.5 | |||
Currency exchange rate contracts | Derivatives designated as hedging instruments | Euro-denominated Debt | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gross notional amount | 4,600 | |||
Currency exchange rate contracts | Derivatives designated as hedging instruments | Cash flow hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gross notional amount | $ 8,100 | 8,800 | ||
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 | € 16 | ¥ 297 | ||
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 | $ 16,200 | |||
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 | 2,200 | |||
Total return swaps | Derivatives not designated as hedging instruments | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gross notional amount | $ 212 | $ 226 |
Derivatives and Currency Exch_4
Derivatives and Currency Exchange Risk Management - Derivative (Gains) Losses Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Derivative Instruments, (Gain) Loss [Line Items] | ||
(Gain) Loss Recognized in Accumulated Other Comprehensive Loss | $ (1,378) | $ (584) |
(Gain) Loss Reclassified into Income | (120) | 30 |
Currency exchange rate contracts | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Recognized in AOCI, net investment hedges | (57) | 0 |
Reclassified into Income, net investment hedges | 0 | 0 |
Currency exchange rate contracts | Other operating expense, net | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Recognized in AOCI, Cash flow hedges | (342) | (164) |
Recognized in income, cash flow hedges | (137) | 19 |
Currency exchange rate contracts | Cost of products sold | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Recognized in AOCI, Cash flow hedges | (34) | 4 |
Recognized in income, cash flow hedges | 18 | 11 |
Non-derivative instruments | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Recognized in AOCI, net investment hedges | (945) | (424) |
Reclassified into Income, net investment hedges | $ 0 | $ 0 |
Derivatives and Currency Exch_5
Derivatives and Currency Exchange Risk Management - Gains and Losses on Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Derivative Instruments, (Gain) Loss [Line Items] | ||
Derivatives not designated as hedging instruments | $ 25 | $ (30) |
Other operating expense, net | Currency exchange rate contracts | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Derivatives not designated as hedging instruments | 26 | (17) |
Other operating expense, net | Total return swaps | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Derivatives not designated as hedging instruments | $ (1) | $ (13) |
Derivatives and Currency Exch_6
Derivatives and Currency Exchange Risk Management - Classification and Fair Value Amounts of Derivative Instruments in Balance Sheets (Details) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | $ 907 | $ 695 |
Derivative Liabilities, Fair Value | 61 | 129 |
Currency exchange rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 907 | 695 |
Derivative Liabilities, Fair Value | 53 | 109 |
Total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 9 | 20 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 889 | 649 |
Derivative Liabilities, Fair Value | 33 | 60 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 621 | 481 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 268 | 168 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 24 | 43 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 8 | 16 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 18 | 46 |
Derivative Liabilities, Fair Value | 29 | 69 |
Derivatives not designated as hedging instruments | Currency exchange rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 18 | 46 |
Derivatives not designated as hedging instruments | Currency exchange rate contracts | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 20 | 49 |
Derivatives not designated as hedging instruments | Total return swaps | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 0 | 0 |
Derivatives not designated as hedging instruments | Total return swaps | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | $ 9 | $ 20 |
Derivatives and Currency Exch_7
Derivatives and Currency Exchange Risk Management - Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 907 | $ 695 |
Derivative Liabilities | 61 | 129 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 907 | 695 |
Derivative Liabilities | 53 | 109 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative Liabilities | $ 9 | $ 20 |
Derivatives and Currency Exch_8
Derivatives and Currency Exchange Risk Management - Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Derivative assets: | ||
Gross Amount of Recognized Assets (Liabilities) | $ 907 | $ 695 |
Derivative liabilities: | ||
Gross Amount of Recognized Assets (Liabilities) | (61) | (129) |
Financial Instruments | 42 | 109 |
Cash Collateral (Received) Posted | 0 | 0 |
Net Amount | (20) | (20) |
Total | ||
Gross Amount of Recognized Assets (Liabilities) | 845 | 566 |
Financial Instruments | 0 | 0 |
Cash Collateral (Received) Posted | (531) | (254) |
Net Amount | 315 | 312 |
Currency exchange rate contracts | ||
Derivative assets: | ||
Gross Amount of Recognized Assets (Liabilities) | 907 | 695 |
Financial Instruments | (42) | (109) |
Cash Collateral (Received) Posted | (531) | (254) |
Net Amount | 335 | 332 |
Derivative liabilities: | ||
Gross Amount of Recognized Assets (Liabilities) | (53) | (109) |
Financial Instruments | 42 | 109 |
Cash Collateral (Received) Posted | 0 | 0 |
Net Amount | (11) | 0 |
Total return swaps | ||
Derivative liabilities: | ||
Gross Amount of Recognized Assets (Liabilities) | (9) | (20) |
Financial Instruments | 0 | 0 |
Cash Collateral (Received) Posted | 0 | 0 |
Net Amount | $ (9) | $ (20) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 3,145 | $ 3,070 |
Work in-process | 739 | 682 |
Raw materials | 926 | 864 |
Total | $ 4,809 | $ 4,616 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill (Details) $ in Millions | 3 Months Ended |
Jul. 29, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 40,502 |
Goodwill as a result of acquisitions | 680 |
Purchase accounting adjustments | (10) |
Transfer to held for sale | (208) |
Currency translation and other | (640) |
Ending balance | 40,324 |
Cardiovascular | |
Goodwill [Roll Forward] | |
Beginning balance | 7,160 |
Goodwill as a result of acquisitions | 66 |
Purchase accounting adjustments | (10) |
Transfer to held for sale | 0 |
Currency translation and other | (49) |
Ending balance | 7,166 |
Medical Surgical | |
Goodwill [Roll Forward] | |
Beginning balance | 19,957 |
Goodwill as a result of acquisitions | 0 |
Purchase accounting adjustments | 0 |
Transfer to held for sale | (208) |
Currency translation and other | (507) |
Ending balance | 19,242 |
Neuroscience | |
Goodwill [Roll Forward] | |
Beginning balance | 11,132 |
Goodwill as a result of acquisitions | 615 |
Purchase accounting adjustments | 0 |
Transfer to held for sale | 0 |
Currency translation and other | (83) |
Ending balance | 11,664 |
Diabetes | |
Goodwill [Roll Forward] | |
Beginning balance | 2,254 |
Goodwill as a result of acquisitions | 0 |
Purchase accounting adjustments | 0 |
Transfer to held for sale | 0 |
Currency translation and other | (1) |
Ending balance | $ 2,253 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | ||
Jul. 29, 2022 | Jul. 30, 2021 | May 25, 2022 | |
Goodwill [Line Items] | |||
Goodwill impairment | $ 0 | ||
Definite-lived intangible asset charges | $ 0 | 409,000,000 | |
Impairment of indefinite-lived intangible assets | 0 | 0 | |
Amortization expense | 423,000,000 | $ 436,000,000 | |
Medical Surgical | Renal Care Business (RCS) | |||
Goodwill [Line Items] | |||
Goodwill | $ 208,000,000 | ||
Goodwill impairment | $ 61,000,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Carrying Amount and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 28,820 | $ 28,308 |
Accumulated Amortization | (13,328) | (13,006) |
IPR&D | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Indefinite-lived | 283 | 293 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,927 | 16,953 |
Accumulated Amortization | (7,238) | (7,005) |
Purchased technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,311 | 10,802 |
Accumulated Amortization | (5,758) | (5,667) |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 485 | 473 |
Accumulated Amortization | (268) | (266) |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 97 | 80 |
Accumulated Amortization | $ (65) | $ (69) |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Future Aggregate Amortization Expense of Amortizable Intangible Assets (Details) $ in Millions | Jul. 29, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining 2023 | $ 1,261 |
2024 | 1,649 |
2025 | 1,627 |
2026 | 1,613 |
2027 | 1,589 |
2028 | $ 1,539 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Aug. 18, 2022 | Jul. 29, 2022 | Jul. 30, 2021 | Apr. 29, 2022 | |
Income Tax Contingency [Line Items] | ||||
Effective tax rate | 10.70% | 7.70% | ||
Permanent reinvestment assertion on historical earnings, nondeductible expense | $ 39 | |||
Benefit related to release of valuation allowance | $ 25 | |||
Gross unrecognized tax benefits | 1,700 | $ 1,700 | ||
Accrued gross interest and penalties | 123 | |||
Unrecognized tax benefits that would impact effective tax rate | 1,600 | |||
Gross unrecognized tax benefits, net of cash advance, recorded as noncurrent liability | $ 889 | $ 802 | ||
Subsequent event | Domestic | ||||
Income Tax Contingency [Line Items] | ||||
Potential income tax charge | $ 2,000 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Numerator: | ||
Net income attributable to ordinary shareholders | $ 929 | $ 763 |
Denominator: | ||
Basic - weighted average shares outstanding (shares) | 1,329.4 | 1,344.5 |
Effect of dilutive securities: | ||
Diluted - weighted average shares outstanding (shares) | 1,334.5 | 1,356.4 |
Basic earnings per share (usd per share) | $ 0.70 | $ 0.57 |
Diluted earnings per share (usd per share) | $ 0.70 | $ 0.56 |
Stock options | ||
Effect of dilutive securities: | ||
Share based payments | 2.7 | 8.5 |
RSUs | ||
Effect of dilutive securities: | ||
Employee restricted stock units (shares) | 1.3 | 2.3 |
Performance share units | ||
Effect of dilutive securities: | ||
Share based payments | 1.1 | 1 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (shares) | 14 | 1 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 62 | $ 69 |
Income tax benefits | (11) | (11) |
Total stock-based compensation expense, net of tax | 51 | 58 |
Cost of products sold | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 6 | 7 |
Research and development expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 7 | 8 |
Selling, general, and administrative expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 49 | 55 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 12 | 10 |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 27 | 41 |
Performance share units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 12 | 6 |
Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 11 | $ 11 |
Retirement Benefit Plans - Comp
Retirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - Pension plans - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
U.S. | ||
Net Periodic Benefit Cost | ||
Service cost | $ 19 | $ 25 |
Interest cost | 36 | 26 |
Expected return on plan assets | (56) | (57) |
Amortization of net actuarial loss | 5 | 16 |
Net periodic benefit cost | 4 | 10 |
Non-U.S. | ||
Net Periodic Benefit Cost | ||
Service cost | 12 | 16 |
Interest cost | 10 | 7 |
Expected return on plan assets | (16) | (16) |
Amortization of net actuarial loss | 1 | 5 |
Net periodic benefit cost | $ 7 | $ 12 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 52,722,000,000 | $ 51,602,000,000 |
Other comprehensive income | 324,000,000 | 274,000,000 |
Ending balance | 52,843,000,000 | 51,664,000,000 |
Total Accumulated Other Comprehensive (Loss) Income | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (2,265,000,000) | (3,485,000,000) |
Other comprehensive income (loss) before reclassifications | 414,000,000 | 230,000,000 |
Reclassifications | (87,000,000) | 46,000,000 |
Other comprehensive income | 326,000,000 | 276,000,000 |
Ending balance | (1,939,000,000) | (3,209,000,000) |
Unrealized Gain (Loss) on Investment Securities | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (209,000,000) | 92,000,000 |
Other comprehensive income (loss) before reclassifications | (22,000,000) | 14,000,000 |
Reclassifications | 6,000,000 | (2,000,000) |
Other comprehensive income | (16,000,000) | 12,000,000 |
Ending balance | (225,000,000) | 104,000,000 |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | (9,000,000) | 2,000,000 |
Reclassifications, tax expense (benefit) | 2,000,000 | 0 |
Cumulative Translation Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (2,599,000,000) | (519,000,000) |
Other comprehensive income (loss) before reclassifications | (881,000,000) | (353,000,000) |
Reclassifications | 0 | 0 |
Other comprehensive income | (881,000,000) | (353,000,000) |
Ending balance | (3,480,000,000) | (872,000,000) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | (3,000,000) | 0 |
Net Investment Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 841,000,000 | (1,458,000,000) |
Other comprehensive income (loss) before reclassifications | 1,002,000,000 | 424,000,000 |
Reclassifications | 0 | 0 |
Other comprehensive income | 1,002,000,000 | 424,000,000 |
Ending balance | 1,843,000,000 | (1,034,000,000) |
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 | (773,000,000) | (1,347,000,000) |
Other comprehensive income (loss) before reclassifications | 3,000,000 | 1,000,000 |
Reclassifications | (2,000,000) | 18,000,000 |
Other comprehensive income | 1,000,000 | 19,000,000 |
Ending balance | (772,000,000) | (1,328,000,000) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | 1,000,000 | 1,000,000 |
Reclassifications, tax expense (benefit) | 6,000,000 | 2,000,000 |
Unrealized Gain (Loss) on Cash Flow Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 474,000,000 | (253,000,000) |
Other comprehensive income (loss) before reclassifications | 312,000,000 | 144,000,000 |
Reclassifications | (91,000,000) | 30,000,000 |
Other comprehensive income | 220,000,000 | 174,000,000 |
Ending balance | 694,000,000 | (79,000,000) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | 64,000,000 | 16,000,000 |
Reclassifications, tax expense (benefit) | $ (22,000,000) | $ 1,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Aug. 10, 2022 plantiff claim | Aug. 03, 2022 claim | May 31, 2017 claim | Jul. 29, 2022 USD ($) landfill subsidiary manufacturer claimant | Jul. 30, 2021 USD ($) | Apr. 29, 2016 USD ($) claim | Apr. 29, 2022 USD ($) | |
Loss Contingencies [Line Items] | |||||||
Certain litigation charges, net | $ | $ 0 | $ 26,000,000 | |||||
Accrued litigation charges | $ | $ 300,000,000 | $ 300,000,000 | |||||
Orrington, Maine chemical manufacturing facility | |||||||
Loss Contingencies [Line Items] | |||||||
Number of landfills requiring removal (in landfills) | landfill | 2 | ||||||
Number of landfills requiring capping (in landfills) | landfill | 3 | ||||||
Pelvic mesh | Product liability litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of subsidiaries (in subsidiaries) | subsidiary | 2 | ||||||
Number of manufacturers (in manufacturers) | manufacturer | 1 | ||||||
Amount of settlement received | $ | $ 121,000,000 | ||||||
Number of claims settled (in claims) | claim | 5,000 | 11,000 | |||||
Number of claimants (in claimants) | claimant | 16,200 | ||||||
Pelvic mesh | Product liability litigation | Subsequent event | |||||||
Loss Contingencies [Line Items] | |||||||
Number of claims settled (in claims) | claim | 15,900 | ||||||
Hernia Mesh Litigation | Pending Litigation | Subsequent event | |||||||
Loss Contingencies [Line Items] | |||||||
Number of claimants (in claimants) | claim | 90 | ||||||
Number of plaintiffs (in plaintiffs) | plantiff | 6,050 | ||||||
Hernia Mesh Litigation | Pending Litigation | Subsequent event | Massachusetts | |||||||
Loss Contingencies [Line Items] | |||||||
Number of plaintiffs (in plaintiffs) | plantiff | 5,600 | ||||||
Hernia Mesh Litigation | Pending Litigation | Subsequent event | Minnesota | |||||||
Loss Contingencies [Line Items] | |||||||
Number of plaintiffs (in plaintiffs) | plantiff | 350 |
Segment and Geographic Inform_3
Segment and Geographic Information - Narrative (Details) | 3 Months Ended |
Jul. 29, 2022 portfolio | |
Segment Reporting [Abstract] | |
Number of operating segments (in segments) | 4 |
Number of reportable segments (in segments) | 4 |
Segment and Geographic Inform_4
Segment and Geographic Information - Income From Operations Before Income Taxes by Reportable Segment and Reconciliation to Consolidated (Details) - USD ($) | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Segment Reporting Information [Line Items] | ||
Segment operating profit | $ 1,125,000,000 | $ 859,000,000 |
Other non-operating income, net | 83,000,000 | 111,000,000 |
Amortization of intangible assets | (423,000,000) | (436,000,000) |
Restructuring and associated costs and RCS/MCS impairment / costs | (85,000,000) | |
Certain litigation charges, net | 0 | (26,000,000) |
Income before income taxes | 1,044,000,000 | 833,000,000 |
Renal Care Business (RCS) | ||
Segment Reporting Information [Line Items] | ||
Restructuring and associated costs and RCS/MCS impairment / costs | 0 | |
Mechanical Circulatory Support Operating Unit (MCS) | ||
Segment Reporting Information [Line Items] | ||
Restructuring and associated costs and RCS/MCS impairment / costs | 0 | (726,000,000) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment operating profit | 2,490,000,000 | 3,170,000,000 |
Operating Segments | Cardiovascular | ||
Segment Reporting Information [Line Items] | ||
Segment operating profit | 956,000,000 | 1,161,000,000 |
Operating Segments | Medical Surgical | ||
Segment Reporting Information [Line Items] | ||
Segment operating profit | 642,000,000 | 914,000,000 |
Operating Segments | Neuroscience | ||
Segment Reporting Information [Line Items] | ||
Segment operating profit | 815,000,000 | 962,000,000 |
Operating Segments | Diabetes | ||
Segment Reporting Information [Line Items] | ||
Segment operating profit | 77,000,000 | 133,000,000 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Interest expense | (164,000,000) | (137,000,000) |
Other non-operating income, net | 83,000,000 | 111,000,000 |
Amortization of intangible assets | (423,000,000) | (436,000,000) |
Corporate | (414,000,000) | (449,000,000) |
Centralized distribution costs | (311,000,000) | (464,000,000) |
Acquisition-related items | (35,000,000) | (19,000,000) |
Certain litigation charges, net | 0 | (26,000,000) |
IPR&D charges | 0 | (90,000,000) |
Medical device regulations | (32,000,000) | (21,000,000) |
Segment Reconciling Items | Renal Care Business (RCS) | ||
Segment Reporting Information [Line Items] | ||
Restructuring and associated costs and RCS/MCS impairment / costs | (74,000,000) | |
Segment Reconciling Items | Restructurings Excluding RCS and MCS | ||
Segment Reporting Information [Line Items] | ||
Restructuring and associated costs and RCS/MCS impairment / costs | $ (76,000,000) | $ (81,000,000) |
Segment and Geographic Inform_5
Segment and Geographic Information - Schedule of Net Sales to External Customers and Property, Plant, and Equipment, Net, by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 7,371 | $ 7,987 |
Ireland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 23 | 26 |
Total other countries, excluding Ireland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 7,348 | 7,961 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 3,766 | 4,101 |
Rest of world | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 3,582 | $ 3,860 |