0001613103
Medtronic plc
D02 XH02
false
0001613103
2024-05-23
2024-05-23
0001613103
us-gaap:CommonStockMember
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotes2019Due2025Member
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotes2020Due2025Member
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotesDue2025Member
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotes2019Due2027Member
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotes2020Due2028Member
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotesDue2028Member
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotes2019Due20311.625PercentMember
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotes2019Due20311.00PercentMember
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotesDue2031Member
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotes2020Due2032Member
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotesDue2034Member
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotes2019Due20392.250PercentMember
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotes2019Due20391.50PercentMember
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotes2020Due2040Member
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotes2019Due2049Member
2024-05-23
2024-05-23
0001613103
mdt:SeniorNotes2020Due2050Member
2024-05-23
2024-05-23
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________
FORM
8-K
_____________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 23, 2024
_____________________________
Medtronic plc
(Exact name of Registrant as Specified in its Charter)
_____________________________
Ireland 1-36820 98-1183488
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
20 On Hatch, Lower Hatch Street
Dublin 2
,
Ireland
(Address of principal executive offices) (Zip Code)
+
353
1
438-1700
(Registrant's telephone number, including area code)
Not Applicable
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
-------------------------------------------------------------------------------
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Ordinary shares, par value $0.0001 per share MDT New York Stock Exchange
0.250% Senior Notes due 2025 MDT/25 New York Stock Exchange
0.000% Senior Notes due 2025 MDT/25A New York Stock Exchange
2.625% Senior Notes due 2025 MDT/25B New York Stock Exchange
1.125% Senior Notes due 2027 MDT/27 New York Stock Exchange
0.375% Senior Notes due 2028 MDT/28 New York Stock Exchange
3.000% Senior Notes due 2028 MDT/28A New York Stock Exchange
1.625% Senior Notes due 2031 MDT/31 New York Stock Exchange
1.000% Senior Notes due 2031 MDT/31A New York Stock Exchange
3.125% Senior Notes due 2031 MDT/31B New York Stock Exchange
0.750% Senior Notes due 2032 MDT/32 New York Stock Exchange
3.375% Senior Notes due 2034 MDT/34 New York Stock Exchange
2.250% Senior Notes due 2039 MDT/39A New York Stock Exchange
1.500% Senior Notes due 2039 MDT/39B New York Stock Exchange
1.375% Senior Notes due 2040 MDT/40A New York Stock Exchange
1.750% Senior Notes due 2049 MDT/49 New York Stock Exchange
1.625% Senior Notes due 2050 MDT/50 New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as
defined in Rule 405 of the Securities Act of 1933 ((s)230.405 of this chapter)
or Rule 12b-2 of the Securities Exchange Act of 1934 ((s)240.12b-2 of this
chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has
elected not to use the extended transition period for complying with any new
or revised financial accounting standards provided pursuant to Section 13(a)
of the Exchange Act.
-------------------------------------------------------------------------------
Item 2.02. Results of Operations and Financial Condition
On May 23, 2024, Medtronic plc, a public limited company organized under the
laws of Ireland, issued a press release announcing its full year and fourth
quarter fiscal year 2024 financial results. A copy of the Medtronic financial
results press release is furnished as Exhibit 99.1 to this Current Report on
Form 8-K.
Item 9.01. Exhibits
(d) List of Exhibits
Exhibit Number Description
99.1 Press release of Medtronic
plc, dated May 23, 2024
104 Cover Page Interactive Data File (embedded
with the Inline XBRL document).
-------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Medtronic plc
By /s/ Karen L. Parkhill
Date: May 23, 2024 Karen L. Parkhill
Executive Vice President and Chief Financial Officer
-------------------------------------------------------------------------------
EXHIBIT INDEX
Exhibit Number Description
99.1 Press release of Medtronic
plc, dated May 23, 2024
104 Cover Page Interactive Data File (embedded
with the Inline XBRL document).
Exhibit 99.1
NEWS RELEASE
Contacts:
Erika Winkels Ryan Weispfenning
Public Relations Investor Relations
+1-763-526-8478 +1-763-505-4626
FOR IMMEDIATE RELEASE
Medtronic reports full year and fourth quarter
fiscal 2024 financial results;
announces dividend increase
Broad-based, durable growth across the company, including Cranial & Spinal
Technologies, Diabetes, Cardiac Pacing, Surgical, and Structural Heart;
gaining momentum as company enters new product cycles across many high-growth
markets
DUBLIN - May 23, 2024 -
Medtronic plc (NYSE:MDT) today announced financial results for its fourth
quarter (Q4) and fiscal year 2024 (FY24), which ended April 26, 2024.
Key Highlights
.
Q4 revenue of $8.6 billion increased 0.5% as reported and 5.4% organic
.
Q4 GAAP diluted earnings per share (EPS) of $0.49; non-GAAP diluted EPS of $1.46
1
-------------------------------------------------------------------------------
.
FY24 revenue of $32.4 billion increased 3.6% as reported and 5.2% organic
.
FY24 GAAP diluted EPS of $2.76; non-GAAP diluted EPS of $5.20
.
FY24 cash from operations of $6.8 billion increased 12%; FY24 free cash flow
of $5.2 billion increased 14%
.
Company returned $5.5 billion to shareholders in FY24, including $1.6 billion
through net share repurchases in Q4
.
Company issues FY25 guidance
.
Dividend increased to $0.70 per share quarterly, annual $2.80 per share; 47th
consecutive year of dividend increases
.
Received U.S. FDA approval for Evolut" FX+ TAVR system and Inceptiv"
closed-loop spinal cord stimulator; received China National Medical Products
Administration (NMPA) approval for Symplicity Spyral" renal denervation
system; submitted Affera Sphere-9" ablation catheter and Simplera Sync" CGM to
U.S. FDA seeking approval
Q4 Financial Results
Medtronic reported Q4 worldwide revenue of $8.589 billion, an increase of 0.5%
as reported and 5.4% on an organic basis. The company's organic revenue
results reflect broad-based growth across the company, with mid-single digit
or higher organic revenue growth in all four segments. The organic revenue
growth comparison excludes:
.
$57 million of current year revenue and $114 million of prior year revenue
reported as Other, stemming from business separations and product line exits;
.
$72 million of unfavorable impact from foreign currency translation on the
remaining segments; and
.
$265 million of prior year revenue from a one-time
intellectual property (IP) agreement, which was reported in the Structural
Heart & Aortic division in the Cardiovascular Portfolio
As reported, Q4 GAAP net income and diluted EPS were $654 million and $0.49,
respectively, decreases of 45% and 44%, respectively. As detailed in the
financial schedules included at the end of this release, Q4 non-GAAP net
income and non-GAAP
2
-------------------------------------------------------------------------------
diluted EPS were $1.929 billion and $1.46, respectively, decreases of 8% and
7%, respectively. Included in Q4 non-GAAP diluted EPS was a 7 cent, or 4%,
unfavorable impact from foreign currency translation.
FY24 Financial Results
Medtronic reported FY24 worldwide revenue of $32.364 billion, an increase of
3.6% as reported and 5.2% on an organic basis. The FY24 organic revenue growth
comparison excludes:
.
$111 million of current year revenue and $358 million of prior year revenue
reported as Other, stemming from business separations and product line exits;
.
$43 million of favorable impact from foreign currency translation on the
remaining segments; and
.
$265 million of prior year revenue from a one-time
IP agreement.
FY24 GAAP net income and diluted earnings per share (EPS) were $3.676 billion
and $2.76, respectively, both representing decreases of 2%. As detailed in the
financial schedules included at the end of this release, fiscal year 2024
non-GAAP net income and non-GAAP diluted EPS were $6.918 billion and $5.20,
respectively, both representing decreases of 2%. Included in FY24 non-GAAP
diluted EPS was a 33 cent unfavorable impact from foreign currency
translation. FY24 non-GAAP diluted EPS on a constant currency basis increased
5%.
FY24 cash from operations of $6.787 billion increased 12%. FY24 free cash flow
of $5.200 billion increased 14%, representing free cash flow conversion from
non-GAAP net earnings of 75%. Growth was driven by improvements in working
capital.
"We delivered a strong finish to the fiscal year, with broad strength across
our businesses and each of our four segments posting mid-single digit or
higher organic revenue growth," said Geoff Martha, Medtronic chairman and
chief executive officer. "Our momentum is building into the new fiscal year.
We're beginning new product cycles in some of MedTech's most attractive
markets, which is further enhanced as we apply AI
3
-------------------------------------------------------------------------------
across our portfolio. We are very optimistic about what we can achieve in
fiscal '25 and beyond."
Cardiovascular Portfolio
The Cardiovascular Portfolio includes the Cardiac Rhythm & Heart Failure
(CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular
(CPV) divisions. FY24 revenue of $11.831 billion increased 2.7% as reported
and 5.0% organic, with a high-single digit increase in SHA, mid-single digit
increase in CPV, and a low-single digit increase in CRHF, all on an organic
basis. Q4 revenue of $3.130 billion decreased 5.2% as reported and increased
4.0% organic, with mid-single digit organic increases in SHA and CPV, and a
low-single digit organic increase in CRHF.
.
CRHF Q4 results included low-single digit growth in Cardiac Rhythm Management,
driven by high-single digit growth in Cardiac Pacing Therapies, including
low-20s growth in Micra" transcatheter pacing systems; Cardiac Ablation
Solutions grew mid-single digits, with declines in cryoablation more than
offset by strong growth in pulsed field ablation (PFA)
.
SHA Q4 results driven by high-single digit growth in Structural Heart and
Cardiac Surgery; Structural Heart had double digit growth in Western Europe
and Japan on the continued adoption of the Evolut" FX transcatheter aortic
valve replacement (TAVR) system
.
CPV in Q4 delivered mid-single digit Coronary growth with strength in guide
catheters and balloons; Peripheral Vascular Health also grew mid-single
digits, with mid-teens growth in drug-coated balloons and vascular
embolization products
.
Received U.S. FDA approval for Evolut" FX+ TAVR system in March, with early
commercial experience this spring 2024 and full product launch in summer 2024;
Launched Avalus Ultra" surgical aortic tissue value in the U.S.; Symplicity
Spyral" renal denervation system received National Medical Products
Administration (NMPA) approval in China and license from Health Canada
.
One-year results from SMART trial simultaneously presented at American College
of Cardiology and published in
The New England Journal of Medicine
in
4
-------------------------------------------------------------------------------
April, demonstrating Medtronic Evolut" TAVR platform as optimal treatment for
severe aortic stenosis in patients with small annuli, which is primarily women
.
First-in-human data studying the Sphere-360" PFA catheter presented at
European Heart Rhythm Association annual meeting in April; one-year results
from SPHERE-PER AF pivotal study of the Sphere-9" pulsed field (PF) and
radiofrequency (RF) ablation, and high density (HD) mapping catheter with the
Affera cardiac mapping and navigation platform presented at Heart Rhythm last
week, system has been submitted to U.S. FDA seeking approval
Neuroscience Portfolio
The Neuroscience Portfolio includes the Cranial & Spinal Technologies (CST),
Specialty Therapies, and Neuromodulation divisions. FY24 revenue of $9.406
billion increased 5.0% as reported and 5.2% organic, with a high-single digit
increase in CST, mid-single digit increase in Specialty Therapies, and a
low-single digit increase in Neuromodulation, all on an organic basis. Q4
revenue of $2.545 billion increased 5.6% as reported and 6.5% organic, with a
high-single digit increase in CST, a mid-single digit increase in
Neuromodulation, and low-single digit increase in Specialty Therapies, all on
an organic basis.
.
CST Q4 performance driven by continued adoption of the AiBLE" ecosystem, with
mid-teens growth in Neurosurgery on strong capital equipment sales,
high-single digit growth in Biologics, and mid-single digit growth in Core
Spine
.
Specialty Therapies Q4 results driven by high-single digit growth in ENT, with
strength in power capital and disposables and localized drug delivery sinus
implants; Neurovascular declined low-single digits, as declines in China due
to volume-based procurement tenders offset strength in flow diversion
products; Pelvic Health increased mid-single digits on continued adoption of
the InterStim X" system
.
Neuromodulation in Q4 delivered low-double digit growth in Brain Modulation on
the launch of the Percept" RC neurostimulator with BrainSense" technology;
Pain Therapies grew mid-single digits, including low-double digit growth in
Targeted Drug Delivery and low-single digit growth in Pain Stim
5
-------------------------------------------------------------------------------
.
Received U.S. FDA approval for Inceptiv" closed-loop spinal cord stimulator on
last day of Q4; received U.S. FDA clearance for OsteoCool" 2.0 bone tumor
ablation system in Q4, with broad market launch planned later this calendar
year
Medical Surgical Portfolio
The Medical Surgical Portfolio includes the Surgical & Endoscopy (SE) and the
Acute Care & Monitoring (ACM) divisions. FY24 revenue of $8.417 billion
increased 5.4% as reported and 4.7% organic, with a mid-single digit increase
in SE and low-single digit increase in ACM, both on an organic basis. Q4
revenue of $2.198 billion increased 3.5% as reported and 4.5% organic, with
mid-single digit organic growth in SE and low-single digit organic growth in
ACM.
.
SE Q4 results included high-single digit growth in General Surgical
Technologies, with strength in wound management and hernia products,
low-single digit growth in Advanced Surgical Technologies, and high-single
digit growth in Endoscopy on strength of capital sales
.
ACM Q4 performance driven by mid-single digit growth in Blood Oxygen
Management on strong sales of Nellcor" pulse oximetry products, and mid-single
digit growth in Airways, driven by strong McGRATH" MAC video laryngoscope
demand
.
Launched Touch Surgery" Live Stream and 14 new AI-driven algorithms on the
Touch Surgery" Performance Insights platform for laparoscopic and
robotic-assisted procedures; received U.S. FDA clearance for the BIS" Advance
anesthesia monitor; started enrollment in two new U.S. indication studies for
the Hugo" robotic-assisted surgery system: Hernia and Gynecology
Diabetes
Diabetes FY24 revenue of $2.488 billion increased 10.0% as reported and 8.6%
organic.
Q4 revenue of $660 million increased 10.9% as reported and 11.1% organic.
.
U.S. Q4 revenue grew low-double digits on the continued launch of the MiniMed"
780G system; high-forties growth in U.S. insulin pump sales with strong growth
in sales to new patients
6
-------------------------------------------------------------------------------
.
Non-U.S. Developed Markets grew high-single digits on continued MiniMed" 780G
system adoption and increased CGM attachment rates
.
Submitted Simplera Sync" CGM to U.S. FDA in Q4 seeking approval for use with
the MiniMed" 780G system
Guidance
The company today issued its fiscal year 2025 (FY25) revenue growth and EPS
guidance.
The company is guiding to FY25 organic revenue growth in the range of 4% to
5%. The organic revenue growth guidance excludes the impact of foreign
currency exchange and revenue reported as Other. Including Other revenue and
the impact of foreign currency exchange, if recent foreign currency exchange
rates hold, FY25 revenue growth on a reported basis would be in the range of
2.4% to 3.7%.
The company is guiding to FY25 diluted non-GAAP EPS in the range of $5.40 to
$5.50, including an estimated 5% unfavorable impact from foreign currency
exchange based on recent rates. This would represent FY25 diluted non-GAAP EPS
growth in the range of 4 to 6%.
Dividend Increase
The company today announced that effective May 22, 2024, the Medtronic board
of directors approved an increase in Medtronic's cash dividend for the first
quarter of fiscal year 2025, raising the quarterly amount to $0.70 per
ordinary share. This would translate into an annual amount of $2.80 per
ordinary share. Medtronic has a long history of dividend growth, and the
company is a constituent of the S&P 500 Dividend Aristocrats index. Today's
announcement marks the 47th consecutive year of an increase in the dividend
payment. Including today's increase, Medtronic's dividend per share has grown
by 30% over the past 5 years, 130% over the past 10 years, and has grown at a
16% compounded annual growth rate over the past 47 years.
7
-------------------------------------------------------------------------------
Medtronic has a strong track record of returning capital to its shareholders,
including $5.5 billion in fiscal year 2024. The company remains committed to
returning a minimum of 50% of its free cash flow to shareholders, primarily
through dividends, and to a lesser extent, share repurchases. The dividend is
payable on July 12, 2024, to shareholders of record at the close of business
on June 28, 2024.
"We delivered on our commitments in the fourth quarter and the fiscal year,
driving durable revenue growth, improved earnings power, and strong free cash
flow," said Karen Parkhill, Medtronic EVP & chief financial officer. "Our
fiscal 2025 guidance, along with our dividend increase and recent share
repurchase, reflects our confidence in our continued trajectory."
Video Webcast Information
Medtronic will host a video webcast today, May 23, at 8:00 a.m. EDT (7:00 a.m.
CDT) to provide information about its businesses for the public, investors,
analysts, and news media. This webcast can be accessed by clicking on the
Events icon at
investorrelations.medtronic.com
, and this earnings release will be archived at
news.medtronic.com
. Within 24 hours of the webcast, a replay of the webcast and transcript of
the company's prepared remarks will be available by clicking on the Events
icon at
investorrelations.medtronic.com
.
Medtronic plans to report its FY25
first, second, third, and fourth quarter results on Tuesday, August 20, 2024,
November 19, 2024, February 18, 2025, and Thursday, May 22, 2025,
respectively. Confirmation and additional details will be provided closer to
the specific event.
Financial Schedules and Earnings Presentation
The fourth quarter financial schedules and non-GAAP reconciliations can be
viewed by clicking on the Investor Events link at
investorrelations.medtronic.com
.
About Medtronic
8
-------------------------------------------------------------------------------
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered
in Dublin, Ireland, is the leading global healthcare technology company that
boldly attacks the most challenging health problems facing humanity by
searching out and finding solutions. Our Mission - to alleviate pain, restore
health, and extend life - unites a global team of 95,000+ passionate people
across 150 countries. Our technologies and therapies treat 70 health
conditions and include cardiac devices, surgical robotics, insulin pumps,
surgical tools, patient monitoring systems, and more. Powered by our diverse
knowledge, insatiable curiosity, and desire to help all those who need it, we
deliver innovative technologies that transform the lives of two people every
second, every hour, every day. Expect more from us as we empower insight-driven
care, experiences that put people first, and better outcomes for our world. In
everything we do, we are engineering the extraordinary. For more information
on Medtronic (NYSE:MDT), visit
www.Medtronic.com
and follow on
X
and
LinkedIn
.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, which are subject to
risks and uncertainties, including risks related to competitive factors,
difficulties and delays inherent in the development, manufacturing, marketing
and sale of medical products, government regulation, geopolitical conflicts,
general economic conditions, and other risks and uncertainties described in
the company's periodic reports on file with the U.S. Securities and Exchange
Commission including the most recent Annual Report on Form 10-K of the
company. In some cases, you can identify these statements by forward-looking
words or expressions, such as "anticipate," "believe," "could," "estimate,"
"expect," "forecast," "intend," "looking ahead," "may," "plan," "possible,"
"potential," "project," "should," "going to," "will," and similar words or
expressions, the negative or plural of such words or expressions and other
comparable terminology. Actual results may differ materially from anticipated
results. Medtronic does not undertake to update its forward-looking statements
or any of the information contained in this press release, including to
reflect future events or circumstances.
NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including adjusted net income,
adjusted diluted EPS, and organic revenue, which are considered "non-GAAP"
financial measures under
9
-------------------------------------------------------------------------------
applicable SEC rules and regulations. References to quarterly or annual
figures increasing, decreasing or remaining flat are in comparison to fiscal
year 2023.
Medtronic management believes that non-GAAP financial measures provide
information useful to investors in understanding the company's underlying
operational performance and trends and to facilitate comparisons with the
performance of other companies in the med tech industry. Non-GAAP net income
and diluted EPS exclude the effect of certain charges or gains that contribute
to or reduce earnings but that result from transactions or events that
management believes may or may not recur with similar materiality or impact to
operations in future periods (Non-GAAP Adjustments). Medtronic generally uses
non-GAAP financial measures to facilitate management's review of the
operational performance of the company and as a basis for strategic planning.
Non-GAAP financial measures should be considered supplemental to and not a
substitute for financial information prepared in accordance with U.S.
generally accepted accounting principles (GAAP), and investors are cautioned
that Medtronic may calculate non-GAAP financial measures in a way that is
different from other companies. Management strongly encourages investors to
review the company's consolidated financial statements and publicly filed
reports in their entirety. Reconciliations of the non-GAAP financial measures
to the most directly comparable GAAP financial measures are included in the
financial schedules accompanying this press release.
Medtronic calculates forward-looking non-GAAP financial measures based on
internal forecasts that omit certain amounts that would be included in GAAP
financial measures. For instance, forward-looking organic revenue growth
guidance excludes the impact of foreign currency fluctuations, as well as
significant acquisitions or divestitures. Forward-looking diluted non-GAAP EPS
guidance also excludes other potential charges or gains that would be recorded
as Non-GAAP Adjustments to earnings during the fiscal year. Medtronic does not
attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to
projected GAAP EPS guidance because the combined impact and timing of
recognition of these potential charges or gains is inherently uncertain and
difficult to predict and is unavailable without unreasonable efforts. In
addition, the company believes such reconciliations would imply a degree of
precision and certainty that could be confusing to investors. Such items could
have a substantial impact on GAAP measures of financial performance.
-end-
10
-------------------------------------------------------------------------------
FINANCIAL SCHEDULES Page
World Wide Revenue 12
U.S. Revenue 13
World Wide Revenue: Geographic 14
Consolidated Statements of Income 15
GAAP to Non-GAAP Reconciliations 16
Consolidated Balance Sheets 20
Consolidated Statements of Cash Flows 21
11
-------------------------------------------------------------------------------
MEDTRONIC PLC
WORLD WIDE REVENUE
(1)
(Unaudited)
FOURTH QUARTER
REPORTED ORGANIC REPOR
(in FY24 FY23 Growth Currency Adjusted Adjusted Adjusted FY24 FY2
millions) Impact FY24 FY23 Growth
(3) (4) (5)
Cardiovascular $ 3,130 $ 3,302 (5.2) % $ (28) $ 3,158 $ 3,037 4.0 % $ 11,831 $ 11,
Cardiac 1,587 1,567 1.3 (15) 1,602 1,567 2.2 5,995 5,
Rhythm
&
Heart
Failure
Structural 883 1,105 (20.1) (6) 889 840 5.8 3,358 3,
Heart
&
Aortic
Coronary 660 631 4.6 (7) 667 631 5.7 2,478 2,
&
Peripheral
Vascular
Neuroscience 2,545 2,410 5.6 (21) 2,566 2,410 6.5 9,406 8,
Cranial 1,291 1,198 7.8 (11) 1,302 1,198 8.7 4,756 4,
&
Spinal
Technologies
Specialty 778 763 2.0 (9) 787 763 3.1 2,905 2,
Therapies
Neuromodulation 475 449 5.8 (1) 476 449 6.0 1,746 1,
Medical 2,198 2,124 3.5 (22) 2,220 2,124 4.5 8,417 7,
Surgical
Surgical 1,705 1,638 4.1 (15) 1,720 1,638 5.0 6,508 6,
&
Endoscopy
Acute 492 486 1.2 (6) 498 486 2.5 1,908 1,
Care
&
Monitoring
Diabetes 660 595 10.9 (1) 661 595 11.1 2,488 2,
Other 57 114 (50.0) (3) - - - 221
(2)
TOTAL $ 8,589 $ 8,544 0.5 % $ (75) $ 8,604 $ 8,165 5.4 % $ 32,364 $ 31,
FISCAL YEAR
TED ORGANIC
3 Growth Currency Adjusted Adjusted Adjusted
Impact FY24 FY23 Growth
(3) (4) (5)
522 2.7 % $ 12 $ 11,819 $ 11,257 5.0 %
783 3.7 11 5,984 5,783 3.5
363 (0.1) 11 3,347 3,098 8.0
375 4.3 (10) 2,488 2,375 4.8
959 5.0 (16) 9,422 8,959 5.2
451 6.9 (11) 4,767 4,451 7.1
815 3.2 (12) 2,917 2,815 3.6
693 3.1 7 1,739 1,693 2.7
989 5.4 16 8,512 8,127 4.7
152 5.8 20 6,488 6,152 5.5
837 3.9 (4) 2,024 1,975 2.5
262 10.0 31 2,457 2,262 8.6
495 (55.4) (12) - - -
227 3.6 % $ 31 $ 32,210 $ 30,604 5.2 %
(1) The data in this schedule has been intentionally rounded to the nearest
million and, therefore, may not sum.
(2) Includes historical operations and ongoing transition agreements from
businesses the Company has exited or divested, which primarily includes the
Company's ventilator product line and the Renal Care Solutions (RCS) business.
(3) The currency impact to revenue measures the change in revenue between
current and prior year periods using constant exchange rates.
(4) The three and twelve months ended April 26, 2024 excludes $57 million and
$111 million, respectively, of inorganic revenue related to the activity noted
in (2) and $72 million of unfavorable currency impact and $43 million of
favorable currency impact on the remaining segments, respectively. The fiscal
year organic revenue calculation reclassifies the first nine months of
ventilator product line revenue of $110 million from the Other line to the
Acute Care and Monitoring division of the Medical Surgical Portfolio.
(5) The three and twelve months ended April 28, 2023 excludes $379 million and
$623 million, respectively, of inorganic revenue related to the following:
.
$265 million related to the one-time payment received as a result of the
Intellectual Property Agreement entered into with Edwards Lifesciences in
April 2023, which is included in the reported results of the Structural Heart
& Aortic division of the Cardiovascular portfolio, and
.
$114 million and $358 million, respectively, of inorganic revenue related to
the activity noted in (2). The fiscal year organic revenue calculation
reclassifies the first nine months of ventilator product line revenue of $138
million from the Other line to the Acute Care and Monitoring division of the
Medical Surgical Portfolio.
12
-------------------------------------------------------------------------------
MEDTRONIC PLC
U.S.
(1)(2)
REVENUE
(Unaudited)
FOURTH QUARTER FI
REPORTED ORGANIC REPORTED
(in FY24 FY23 Adjusted Adjusted Growth FY24 FY23 Growth
millions) Growth FY24 FY23
(4) (5)
Cardiovascular $ 1,448 $ 1,737 (16.6) % $ 1,448 $ 1,472 (1.6) % $ 5,597 $ 5,796 (3.4)
Cardiac 791 819 (3.4) 791 819 (3.4) 3,037 3,052 (0.5)
Rhythm
&
Heart
Failure
Structural 366 625 (41.4) 366 360 1.7 1,453 1,622 (10.4)
Heart
&
Aortic
Coronary 291 293 (0.7) 291 293 (0.7) 1,107 1,122 (1.3)
&
Peripheral
Vascular
Neuroscience 1,692 1,581 7.0 1,692 1,581 7.0 6,305 6,018 4.8
Cranial 936 855 9.5 936 855 9.5 3,495 3,259 7.2
&
Spinal
Technologies
Specialty 439 422 4.0 439 422 4.0 1,641 1,608 2.1
Therapies
Neuromodulation 317 304 4.3 317 304 4.3 1,169 1,151 1.6
Medical 954 919 3.8 954 919 3.8 3,717 3,549 4.7
Surgical
Surgical 679 653 4.0 679 653 4.0 2,650 2,541 4.3
&
Endoscopy
Acute 275 266 3.4 275 266 3.4 1,067 1,008 5.9
Care
&
Monitoring
Diabetes 223 199 12.1 223 199 12.1 852 849 0.4
Other 26 39 (33.3) - - - 91 160 (43.1)
(3)
TOTAL $ 4,343 $ 4,476 (3.0) % $ 4,317 $ 4,171 3.5 % $ 16,562 $ 16,373 1.2
SCAL YEAR
ORGANIC
Adjusted Adjusted Growth
FY24 FY23
(4) (5)
% $ 5,597 $ 5,531 1.2 %
3,037 3,052 (0.5)
1,453 1,357 7.1
1,107 1,122 (1.3)
6,305 6,018 4.8
3,495 3,259 7.2
1,641 1,608 2.1
1,169 1,151 1.6
3,759 3,604 4.3
2,650 2,541 4.3
1,109 1,063 4.3
852 849 0.4
- - -
% $ 16,514 $ 16,003 3.2 %
(1) U.S. includes the United States and U.S. territories.
(2) The data in this schedule has been intentionally rounded to the nearest
million and, therefore, may not sum.
(3) Includes historical operations and ongoing transition agreements from
businesses the Company has exited or divested, which primarily includes the
Company's ventilator product line and the Renal Care Solutions (RCS) business.
(4) The three and twelve months ended April 26, 2024 excludes $26 million and
$48 million, respectively, of inorganic revenue related to the activity noted
in (3). The fiscal year organic revenue calculation reclassifies the first
nine months of ventilator product line revenue of $42 million from the Other
line to the Acute Care and Monitoring division of the Medical Surgical
Portfolio.
(5) The three and twelve months ended April 28, 2023 excludes $304 million and
$370 million, respectively, of inorganic revenue related to the following:
.
$265 million related to the one-time payment received as a result of the
Intellectual Property Agreement entered into with Edwards Lifesciences in
April 2023, which is included in the reported results of the Structural Heart
& Aortic division of the Cardiovascular portfolio, and
.
$39 million and $105 million, respectively, of inorganic revenue related to
the activity noted in (3). The fiscal year organic revenue calculation
reclassifies the first nine months of ventilator product line revenue of $55
million from the Other line to the Acute Care and Monitoring division of the
Medical Surgical Portfolio.
13
-------------------------------------------------------------------------------
MEDTRONIC PLC
WORLD WIDE REVENUE: GEOGRAPHIC
(1)(2)
(Unaudited)
FOURTH QUARTER
REPORTED ORGANIC REPORTED
(in FY24 FY23 Growth Currency Adjusted Adjusted Growth FY24 FY23
millions) Impact FY24 FY23
(4) (5) (6)
U.S. $ 1,448 $ 1,737 (16.6) % $ - $ 1,448 $ 1,472 (1.6) % $ 5,597 $ 5,796
Non-U.S. 1,039 1,011 2.8 (13) 1,052 1,011 4.1 3,857 3,564
Developed
Emerging 643 554 16.1 (15) 658 554 18.8 2,377 2,161
Markets
Cardiovascular 3,130 3,302 (5.2) (28) 3,158 3,037 4.0 11,831 11,522
U.S. 1,692 1,581 7.0 - 1,692 1,581 7.0 6,305 6,018
Non-U.S. 482 469 2.8 (11) 493 469 5.1 1,739 1,658
Developed
Emerging 371 360 3.1 (10) 381 360 5.8 1,362 1,283
Markets
Neuroscience 2,545 2,410 5.6 (21) 2,566 2,410 6.5 9,406 8,959
U.S. 954 919 3.8 - 954 919 3.8 3,717 3,549
Non-U.S. 805 799 0.8 (17) 822 799 2.9 3,049 2,917
Developed
Emerging 439 405 8.4 (5) 444 405 9.6 1,650 1,522
Markets
Medical 2,198 2,124 3.5 (22) 2,220 2,124 4.5 8,417 7,989
Surgical
U.S. 223 199 12.1 - 223 199 12.1 852 849
Non-U.S. 337 314 7.3 1 336 314 7.0 1,284 1,106
Developed
Emerging 99 82 20.7 (2) 101 82 23.2 352 307
Markets
Diabetes 660 595 10.9 (1) 661 595 11.1 2,488 2,262
U.S. 26 39 (33.3) - - - - 91 160
Non-U.S. 11 35 (68.6) (2) - - - 50 163
Developed
Emerging 21 39 (46.2) (1) - - - 81 172
Markets
Other 57 114 (50.0) (3) - - - 221 495
(3)
U.S. 4,343 4,476 (3.0) - 4,317 4,171 3.5 16,562 16,373
Non-U.S. 2,674 2,629 1.7 (42) 2,702 2,593 4.2 9,979 9,408
Developed
Emerging 1,572 1,440 9.2 (33) 1,584 1,401 13.1 5,823 5,446
Markets
TOTAL $ 8,589 $ 8,544 0.5 % $ (75) $ 8,604 $ 8,165 5.4 % $ 32,364 $ 31,227
FISCAL YEAR
ORGANIC
Growth Currency Adjusted Adjusted Growth
Impact FY24 FY23
(4) (5) (6)
(3.4) % $ - $ 5,597 $ 5,531 1.2 %
8.2 62 3,795 3,564 6.5
10.0 (49) 2,426 2,161 12.3
2.7 12 11,819 11,257 5.0
4.8 - 6,305 6,018 4.8
4.9 9 1,730 1,658 4.3
6.2 (25) 1,387 1,283 8.1
5.0 (16) 9,422 8,959 5.2
4.7 - 3,759 3,604 4.3
4.5 20 3,055 2,944 3.8
8.4 (4) 1,697 1,579 7.5
5.4 16 8,512 8,127 4.7
0.4 - 852 849 0.4
16.1 37 1,247 1,106 12.7
14.7 (6) 358 307 16.6
10.0 31 2,457 2,262 8.6
(43.1) - - - -
(69.3) (6) - - -
(52.9) (5) - - -
(55.4) (12) - - -
1.2 - 16,514 16,003 3.2
6.1 121 9,828 9,272 6.0
6.9 (89) 5,869 5,330 10.1
3.6 % $ 31 $ 32,210 $ 30,604 5.2 %
(1) U.S. includes the United States and U.S. territories. Non-U.S. developed
markets include Japan, Australia, New Zealand, Korea, Canada, and the
countries of Western Europe. 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 previously defined.
(2) The data in this schedule has been intentionally rounded to the nearest
million and, therefore, may not sum.
(3) Includes historical operations and ongoing transition agreements from
businesses the Company has exited or divested, which primarily includes the
Company's ventilator product line and the Renal Care Solutions (RCS) business.
(4) The currency impact to revenue measures the change in revenue between
current and prior year periods using constant exchange rates.
(5) The three and twelve months ended April 26, 2024 excludes $57 million and
$111 million, respectively, of inorganic revenue related to the activity noted
in (3) and $72 million of unfavorable currency impact and $43 million of
favorable currency impact on the remaining segments, respectively. The fiscal
year organic revenue calculation reclassifies the first nine months of
ventilator product line revenue of $110 million from the Other line to the
Acute Care and Monitoring division of the Medical Surgical Portfolio.
(6) The three and twelve months ended April 28, 2023 excludes $379 million and
$623 million, respectively, of inorganic revenue related to the following:
.
$265 million related to the one-time payment received as a result of the
Intellectual Property Agreement entered into with Edwards Lifesciences in
April 2023, which is included in the reported results of the Structural Heart
& Aortic division of the Cardiovascular portfolio, and
.
$114 million and $358 million, respectively, of inorganic revenue related to
the activity noted in (3). The fiscal year organic revenue calculation
reclassifies the first nine months of ventilator product line revenue of $138
million from the Other line to the Acute Care and Monitoring division of the
Medical Surgical Portfolio.
14
-------------------------------------------------------------------------------
MEDTRONIC PLC
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended Fiscal year ended
(in millions, except April 26, 2024 April 28, 2023 April 26, 2024 April 28, 2023
per share data)
Net $ 8,589 $ 8,544 $ 32,364 $ 31,227
sales
Costs and
expenses:
Cost of products sold, excluding 3,044 2,980 11,216 10,719
amortization of intangible assets
Research and 675 640 2,735 2,696
development expense
Selling, general, and 2,765 2,616 10,736 10,415
administrative expense
Amortization of 419 423 1,693 1,698
intangible assets
Restructuring 112 294 226 375
charges, net
Certain litigation 44 (30) 149 (30)
charges, net
Other operating 477 56 464 (131)
expense (income), net
Operating 1,053 1,565 5,144 5,485
profit
Other non-operating (4) (173) (412) (515)
income, net
Interest 202 187 719 636
expense, net
Income before 856 1,551 4,837 5,364
income taxes
Income tax 196 362 1,133 1,580
provision
Net income 659 1,188 3,705 3,784
Net income attributable to (5) (9) (28) (26)
noncontrolling interests
Net income attributable $ 654 $ 1,179 $ 3,676 $ 3,758
to Medtronic
Basic earnings $ 0.49 $ 0.89 $ 2.77 $ 2.83
per share
Diluted earnings $ 0.49 $ 0.88 $ 2.76 $ 2.82
per share
Basic weighted average 1,322.3 1,330.4 1,327.7 1,329.8
shares outstanding
Diluted weighted average 1,325.4 1,332.8 1,330.2 1,332.8
shares outstanding
The data in the schedule above has been intentionally rounded to the nearest
million, and therefore, the quarterly amounts may not sum to the fiscal
year-to-date amounts.
15
-------------------------------------------------------------------------------
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS
(1)
(Unaudited)
Three months ended April 26, 2024
(in Net Cost Gross Operating Operating Income Net Diluted
millions, Sales of Margin Profit Profit Before Income EPS
except Products Percent Percent Income attributable
per Sold Taxes to
share Medtronic
data)
GAAP $ 8,589 $ 3,044 64.6 % $ 1,053 12.3 % $ 856 $ 654 $ 0.49
Non-GAAP
Adjustments:
Amortization - - - 419 4.9 419 357 0.27
of
intangible
assets
Restructuring - (13) 0.2 152 1.8 152 125 0.09
and
associated
costs
(2)
Acquisition - (76) 0.9 611 7.1 611 515 0.39
and
divestiture-related
items
(3)
Certain - - - 44 0.5 44 37 0.03
litigation
charges,
net
(Gain)/loss - - - - - 195 197 0.15
on
minority
investments
(4)
Medical - (21) 0.2 31 0.4 31 27 0.02
device
regulations
(5)
Certain - - - - - - 17 0.01
tax
adjustments,
net
Non-GAAP $ 8,589 $ 2,934 65.8 % $ 2,311 26.9 % $ 2,309 $ 1,929 $ 1.46
Currency 75 18 0.1 101 0.9 0.07
impact
Currency $ 8,664 $ 2,952 65.9 % $ 2,412 27.8 % $ 1.53
Adjusted
Three months ended April 28, 2023
(in Net Cost Gross Operating Operating Income Net Diluted
millions, Sales of Margin Profit Profit Before Income EPS
except Products Percent Percent Income attributable
per Sold Taxes to
share Medtronic
data)
GAAP $ 8,544 $ 2,980 65.1 % $ 1,565 18.3 % $ 1,551 $ 1,179 $ 0.88
Non-GAAP
Adjustments:
Amortization - - - 423 5.0 423 361 0.27
of
intangible
assets
Restructuring - (30) 0.4 372 4.4 372 288 0.22
and
associated
costs
(2)
Acquisition - (7) 0.1 139 1.6 139 131 0.10
and
divestiture-related
items
(6)
Certain - - - (30) (0.4) (30) (22) (0.02)
litigation
charges,
net
(7)
(Gain)/loss - - - - - (10) (7) (0.01)
on
minority
investments
(4)
Medical - (25) 0.3 44 0.5 44 34 0.03
device
regulations
(5)
Certain - - - - - - 127 0.10
tax
adjustments,
net
(8)
Non-GAAP $ 8,544 $ 2,917 65.9 % $ 2,512 29.4 % $ 2,488 $ 2,091 $ 1.57
Effective
Tax
Rate
22.9 %
15.0
17.8
15.9
15.9
(1.0)
12.9
-
16.2 %
Effective
Tax
Rate
23.3 %
14.7
22.6
5.8
26.7
(20.0)
22.7
-
15.8 %
See description of non-GAAP financial measures contained in the press release
dated May 23, 2024.
(1)
The data in this schedule has been intentionally rounded to the nearest
million or $0.01 for EPS figures, and, therefore, may not sum.
(2)
Associated costs include costs incurred as a direct result of the
restructuring program, such as salaries for employees supporting the program,
consulting expenses, and asset write-offs.
(3)
The charges predominantly include $439 million of charges related to the
February 20, 2024 decision to exit the Company's ventilator product line,
which primarily includes long-lived intangible asset impairments and inventory
write-downs. In addition, other charges primarily consist of changes in fair
value of contingent consideration.
(4)
We exclude unrealized and realized gains and losses on our minority
investments as we do not believe that these components of income or expense
have a direct correlation to our ongoing or future business operations.
(5)
The charges represent incremental costs of complying with the new European
Union medical device regulations for previously registered products and
primarily include charges for contractors supporting the project and other
direct third-party expenses. We consider these costs to be duplicative of
previously incurred costs and/or one-time costs, which are limited to a
specific period.
(6)
The charges primarily include changes in the carrying value of the disposal
group and other associated costs as a result of the April 2023 sale of half of
the Company's Renal Care Solutions (RCS) business, changes in fair value of
contingent consideration, business combination costs, and associated costs
related to the previously contemplated separation of the PMRI businesses.
(7)
Certain litigation includes $35 million related to the one-time payment
received as a result of the Intellectual Property Agreement entered into with
Edwards Lifesciences in April 2023.
(8)
The charge primarily relates to the reduction of deferred tax assets due to
the disallowance of certain interest deductions and the change in the
reporting currency for certain carryover attributes, and the impact from the
sale of half of the Company's RCS business.
16
-------------------------------------------------------------------------------
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS
(1)
(Unaudited)
Fiscal year ended April 26, 2024
(in Net Cost Gross Operating Operating Income Net Dil
millions, Sales of Margin Profit Profit Before Income E
except Products Percent Percent Income attributable
per Sold Taxes to
share Medtronic
data)
GAAP $ 32,364 $ 11,216 65.3 % $ 5,144 15.9 % $ 4,837 $ 3,676 $ 2
Non-GAAP
Adjustments:
Amortization - - - 1,693 5.2 1,693 1,435 1
of
intangible
assets
Restructuring - (55) 0.2 389 1.2 389 323 0
and
associated
costs
(2)
Acquisition - (100) 0.3 777 2.4 777 664 0
and
divestiture-related
items
(3)
Certain - - - 149 0.5 149 118 0
litigation
charges
(Gain)/loss - - - - - 308 305 0
on
minority
investments
(4)
Medical - (81) 0.3 119 0.4 119 97 0
device
regulations
(5)
Certain - - - - - - 299 0
tax
adjustments,
net
(6)
Non-GAAP $ 32,364 $ 10,980 66.1 % $ 8,272 25.6 % $ 8,273 $ 6,918 $ 5
Currency (31) (114) 0.3 507 1.6 0
impact
Currency $ 32,333 $ 10,866 66.4 % $ 8,779 27.2 % $ 5
Adjusted
Fiscal year ended April 28, 2023
(in Net Cost Gross Operating Operating Income Net Dil
millions, Sales of Margin Profit Profit Before Income E
except Products Percent Percent Income attributable
per Sold Taxes to
share Medtronic
data)
GAAP $ 31,227 $ 10,719 65.7 % $ 5,485 17.6 % $ 5,364 $ 3,758 $ 2
Non-GAAP
Adjustments:
Amortization - - - 1,698 5.4 1,698 1,443 1
of
intangible
assets
Restructuring - (97) 0.3 647 2.1 647 507 0
and
associated
costs
(2)
Acquisition - (66) 0.2 345 1.1 345 316 0
and
divestiture-related
items
(7)
Certain - - - (30) (0.1) (30) (23) (0.
litigation
charges,
net
(8)
(Gain)/loss - - - - - (33) (29) (0.
on
minority
investments
(4)
Medical - (88) 0.3 150 0.5 150 120 0
device
regulations
(5)
Debt - - - - - 53 42 0
redemption
premium
and
other
charges
(9)
Certain - - - - - - 910 0
tax
adjustments,
net
(10)
Non-GAAP $ 31,227 $ 10,469 66.5 % $ 8,295 26.6 % $ 8,194 $ 7,045 $ 5
uted Effective
PS Tax
Rate
.76 23.4 %
.08 15.2
.24 17.0
.50 14.5
.09 20.8
.23 0.6
.07 18.5
.22 -
.20 16.0 %
.33
.53
uted Effective
PS Tax
Rate
.82 29.5 %
.08 15.0
.38 21.5
.24 8.4
02) 26.7
02) (6.1)
.09 20.0
.03 20.8
.68 -
.29 13.8 %
See description of non-GAAP financial measures contained in the press release
dated May 23, 2024.
(1)
The data in this schedule has been intentionally rounded to the nearest
million or $0.01 for EPS figures, and, therefore, may not sum.
(2)
Associated costs include costs incurred as a direct result of the
restructuring program, such as salaries for employees supporting the program,
consulting expenses, and asset write-offs.
(3)
The charges predominantly include $439 million of charges related to the
February 20, 2024 decision to exit the Company's ventilator product line,
which primarily includes long-lived intangible asset impairments and inventory
write-downs. In addition, other charges primarily consist of changes in fair
value of contingent consideration and associated costs related to the
previously contemplated separation of the PMRI businesses.
(4)
We exclude unrealized and realized gains and losses on our minority
investments as we do not believe that these components of income or expense
have a direct correlation to our ongoing or future business operations.
(5)
The charges represent incremental costs of complying with the new European
Union medical device regulations for previously registered products and
primarily include charges for contractors supporting the project and other
direct third-party expenses. We consider these costs to be duplicative of
previously incurred costs and/or one-time costs, which are limited to a
specific time period.
(6)
The net charge primarily relates to an income tax reserve adjustment
associated with the June 2023, Israeli Central-Lod District Court decision and
the establishment of a valuation allowance against certain net operating
losses which were partially offset by a benefit from the change in a Swiss
Cantonal tax rate associated with previously established deferred tax assets
from intercompany intellectual property transactions and the step up in tax
basis for Swiss Cantonal purposes.
(7)
The charges predominantly include non-cash pre-tax impairments, primarily
related to goodwill, changes in the carrying value of the disposal group, and
other associated costs, as a result of the April 2023 sale of half of the
Company's Renal Care Solutions (RCS) business; business combination costs, and
associated costs related to the previously contemplated separation of the PMRI
businesses.
(8)
Certain litigation includes $35 million income related to the one-time payment
received as a result of the Intellectual Property Agreement entered into with
Edwards Lifesciences in April 2023.
(9)
The charges relate to the early redemption of approximately $2.3 billion of
debt and were recorded within interest expense, net within the consolidated
statements of income.
(10)
The charge primarily relates to a $764 million reserve adjustment that was a
direct result of the U.S. Tax Court opinion, issued in August 2022, on the
previously disclosed litigation regarding the allocation of income between
Medtronic, Inc. and its wholly owned subsidiary operating in Puerto Rico.
Additional charges relate to the reduction of deferred tax assets due to the
disallowance of certain interest deductions and the change in the reporting
currency for certain carryover attributes, and the amortization on previously
established deferred tax assets from intercompany intellectual property
transactions.
17
-------------------------------------------------------------------------------
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS
(1)
(Unaudited)
Three months ended April 26, 2024
(in Net SG&A SG&A R&D R&D Other Other Other
millions) Sales Expense Expense Expense Expense Operating Operating Non-Operat
as a as a (Income) (Inc.)/Exp., Income,
% of Net % of Net Expense, net as net
Sales Sales net a %
of Net
Sales
GAAP $ 8,589 $ 2,765 32.2 % $ 675 7.9 % $ 477 5.6 % $ (4)
Non-GAAP
Adjustments:
Restructuring - (28) (0.3) - - - - -
and
associated
costs
(2)
Acquisition - (6) (0.1) - - (530) (6.2) -
and
divestiture-related
items
(3)
Medical - (1) - (9) (0.1) - - -
device
regulations
(4)
(Gain)/loss - - - - - - - (195)
on
minority
investments
(5)
Non-GAAP $ 8,589 $ 2,731 31.8 % $ 666 7.8 % $ (52) (0.6) % $ (200)
ing
Fiscal year ended April 26, 2024
(in Net SG&A SG&A R&D R&D Other Other Other
millions) Sales Expense Expense Expense Expense Operating Operating Non-Opera
as a as a (Income) (Inc.)/Exp., Income
% of Net % of Net Expense, net as net
Sales Sales net a %
of Net
Sales
GAAP $ 32,364 $ 10,736 33.2 % $ 2,735 8.5 % $ 464 1.4 % $ (412)
Non-GAAP
Adjustments:
Restructuring - (108) (0.3) - - - - -
and
associated
costs
(2)
Acquisition - (71) (0.2) - - (606) (1.9) -
and
divestiture-related
items
(3)
Medical - (2) - (36) (0.1) - - -
device
regulations
(4)
(Gain)/loss - - - - - - - (308)
on
minority
investments
(5)
Non-GAAP $ 32,364 $ 10,555 32.6 % $ 2,698 8.3 % $ (141) (0.4) % $ (720)
ting
,
See description of non-GAAP financial measures contained in the press release
dated May 23, 2024.
(1)
The data in this schedule has been intentionally rounded to the nearest
million, and, therefore, may not sum.
(2)
Associated costs include costs incurred as a direct result of the
restructuring program, such as salaries for employees supporting the program
and consulting expenses.
(3)
The charges predominantly include $439 million of charges related to the
February 20, 2024 decision to exit the Company's ventilator product line,
which primarily includes long-lived intangible asset impairments. In addition,
other charges primarily related to changes in fair of contingent consideration
and associated costs related to the previously contemplated separation of the
PMRI businesses.
(4)
The charges represent estimated incremental costs of complying with the new
European Union medical device regulations for previously registered products
and primarily include charges for contractors supporting the project and other
direct third-party expenses. We consider these costs to be duplicative of
previously incurred costs and/or one-time costs, which are limited to a
specific time period.
(5)
We exclude unrealized and realized gains and losses on our minority
investments as we do not believe that these components of income or expense
have a direct correlation to our ongoing or future business operations.
18
-------------------------------------------------------------------------------
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS
(1)
(Unaudited)
Fiscal Year
(in millions) 2024 2023 2022
Net cash provided by operating activities $ 6,787 $ 6,039 $ 7,346
Additions to property, plant, and equipment (1,587) (1,459) (1,368)
Free Cash Flow $ 5,200 $ 4,580 $ 5,978
(2)
See description of non-GAAP financial measures contained in the press release
dated May 23, 2024.
(1)
The data in this schedule has been intentionally rounded to the nearest
million, and therefore, may not sum.
(2)
Free cash flow represents operating cash flows less property, plant, and
equipment additions.
19
-------------------------------------------------------------------------------
MEDTRONIC PLC
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions) April 26, 2024 April 28, 2023
ASSETS
Current assets:
Cash and cash $ 1,284 $ 1,543
equivalents
Investments 6,721 6,416
Accounts receivable, less allowances and 6,128 5,998
credit losses of $173 and $176, respectively
Inventories, net 5,217 5,293
Other current 2,584 2,425
assets
Total current 21,935 21,675
assets
Property, plant, 6,131 5,569
and equipment, net
Goodwill 40,986 41,425
Other intangible 13,225 14,844
assets, net
Tax assets 3,657 3,477
Other assets 4,047 3,959
Total assets $ 89,981 $ 90,948
LIABILITIES AND EQUITY
Current liabilities:
Current debt $ 1,092 $ 20
obligations
Accounts payable 2,410 2,662
Accrued 2,375 1,949
compensation
Accrued 1,330 840
income taxes
Other accrued 3,582 3,581
expenses
Total current 10,789 9,051
liabilities
Long-term debt 23,932 24,344
Accrued compensation and 1,101 1,093
retirement benefits
Accrued 1,859 2,360
income taxes
Deferred tax 515 708
liabilities
Other liabilities 1,365 1,727
Total liabilities 39,561 39,283
Commitments and
contingencies
Shareholders' equity:
Ordinary shares- par value $0.0001, 2.6 billion shares authorized, - -
1,311,337,531 and 1,330,809,036 shares issued and outstanding, respectively
Additional 23,129 24,590
paid-in capital
Retained earnings 30,403 30,392
Accumulated other (3,318) (3,499)
comprehensive loss
Total shareholders' 50,214 51,483
equity
Noncontrolling 206 182
interests
Total equity 50,420 51,665
Total liabilities $ 89,981 $ 90,948
and equity
The data in this schedule has been intentionally rounded to the nearest
million, and, therefore, may not sum.
20
-------------------------------------------------------------------------------
MEDTRONIC PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Fiscal Year
(in millions) 2024 2023 2022
Operating Activities:
Net income $ 3,705 $ 3,784 $ 5,062
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 2,647 2,697 2,707
Provision for credit losses 90 73 58
Deferred income taxes (508) (226) (604)
Stock-based compensation 393 355 359
Loss on debt extinguishment - 53 -
Asset impairments and inventory write-downs 371 - 515
Other, net 573 270 138
Change in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable, net (391) (576) (477)
Inventories, net (139) (939) (560)
Accounts payable and accrued liabilities 391 696 213
Other operating assets and liabilities (345) (148) (65)
Net cash provided by operating activities 6,787 6,039 7,346
Investing Activities:
Acquisitions, net of cash acquired (211) (1,867) (91)
Additions to property, plant, and equipment (1,587) (1,459) (1,368)
Purchases of investments (7,748) (7,514) (9,882)
Sales and maturities of investments 7,441 7,343 9,692
Other investing activities, net (261) 4 (10)
Net cash used in investing activities (2,366) (3,493) (1,659)
Financing Activities:
Change in current debt obligations, net 1,073 - -
Proceeds from short-term borrowings (maturities greater than 90 days) - 2,284 -
Repayments from short-term borrowings (maturities greater than 90 days) - (2,279) -
Issuance of long-term debt - 5,409 -
Payments on long-term debt - (6,012) (1)
Dividends to shareholders (3,666) (3,616) (3,383)
Issuance of ordinary shares 284 308 429
Repurchase of ordinary shares (2,138) (645) (2,544)
Other financing activities (3) (409) 163
Net cash used in financing activities (4,450) (4,960) (5,336)
Effect of exchange rate changes on cash and cash equivalents (230) 243 (231)
Net change in cash and cash equivalents (259) (2,171) 121
Cash and cash equivalents at beginning of period 1,543 3,714 3,593
Cash and cash equivalents at end of period $ 1,284 $ 1,543 $ 3,714
Supplemental Cash Flow Information
Cash paid for:
Income taxes $ 1,622 $ 1,548 $ 996
Interest 826 606 540
The data in this schedule has been intentionally rounded to the nearest
million, and, therefore, may not sum.
21
{graphic omitted}
{graphic omitted}
{graphic omitted}