Solid execution results in mid-single digit
revenue growth, driven by broad-based strength across multiple
businesses and geographies; Major innovative product approvals;
Raises fiscal year guidance
DUBLIN, Nov. 21,
2023 /PRNewswire/ -- Medtronic plc (NYSE:MDT) today
announced financial results for its second quarter of fiscal year
2024 (FY24), which ended October 27,
2023.
Key Highlights
- Revenue of $8.0 billion increased
5.3% as reported and 5.0% organic
- GAAP diluted earnings per share (EPS) of $0.68; non-GAAP diluted EPS of $1.25
- Underlying business fundamentals are strong with broad-based,
diversified growth coming from multiple businesses and
geographies
- Company increases FY24 organic revenue growth and EPS
guidance
- Received U.S. FDA approval for Aurora EV-ICD™ system and
Symplicity Spyral™ renal denervation (RDN) system; CE Mark for
Evolut™ FX TAVR system, Simplera™ standalone CGM, and PulseSelect™
pulsed field ablation (PFA) system
Financial Results
Medtronic reported Q2 worldwide
revenue of $7.984 billion, an
increase of 5.3% as reported and 5.0% on an organic basis. The
company's organic revenue results reflect continued broad strength
across businesses and geographies benefiting from durable
fundamentals. The organic revenue growth comparison excludes:
- Revenue and the associated impact from foreign currency
translation reported as Other, stemming from business separations,
including Renal Care Solutions and ongoing manufacturing agreements
with Cardinal Health from the divestiture of Patient Care, Deep
Vein Thrombosis, and Nutritional Insufficiency; and
- The favorable impact from foreign currency translation of
$86 million on the remaining
segments.
As reported, Q2 GAAP net income and diluted EPS were
$909 million and $0.68, respectively, both representing increases
of 113%. As detailed in the financial schedules included at the end
of this release, Q2 non-GAAP net income of $1.667 billion decreased 3% and non-GAAP diluted
EPS of $1.25 decreased 4%. Included
in non-GAAP diluted EPS was an 8
cent, or 6%, unfavorable impact from foreign currency
translation.
"We're delivering a track record of durable, mid-single digit
revenue growth. The underlying fundamentals are strong, and our
solid results were broad-based across our businesses and
geographies," said Geoff Martha,
Medtronic chairman and chief executive officer. "We're bringing
game changing innovation to market, with numerous recent regulatory
approvals and major product launches, which give us confidence in
our ability to continue delivering dependable growth."
Cardiovascular Portfolio
The Cardiovascular Portfolio
includes the Cardiac Rhythm & Heart Failure (CRHF), Structural
Heart & Aortic (SHA), and Coronary & Peripheral Vascular
(CPV) divisions. Revenue of $2.923
billion increased 5.9% as reported and 4.8% organic, with a
high-single digit organic increase in SHA and mid-single digit
organic increases in CRHF and CPV.
- CRHF results driven by high-single digit growth in Cardiac
Pacing Therapies, including low-double digit growth in Micra™
transcatheter pacing systems; Cardiovascular Diagnostics grew
high-single digits and Cardiac Ablation Solutions grew mid-single
digits
- SHA drove high-single digit growth in Aortic and Cardiac
Surgery; Structural Heart (TAVR) grew mid-single digits on the
continued adoption of Evolut™ FX in the U.S. & Japan
- CPV results driven by mid-single digit growth in Coronary on
the continued strength of the Onyx Frontier™ drug-eluting stent and
low-single digit growth in Peripheral Vascular Health on mid-teens
growth in drug-coated balloons
- Received U.S. FDA approval for Aurora EV-ICD™ system and
Symplicity Spyral™ RDN system; CE Mark for Evolut™ FX transcatheter
aortic valve implantation system and PulseSelect™ pulsed field
ablation (PFA) system
- Presented four-year results from Evolut Low Risk Trial at
the 2023 TCT conference showing the Evolut™ TAVR system
demonstrated exceptional outcomes with sustained valve performance,
proven by significantly better hemodynamics, low thrombosis rates,
and lower and diverging rates of all-cause mortality or disabling
stroke than surgical aortic valve replacement (SAVR) at four
years
Neuroscience Portfolio
The Neuroscience Portfolio
includes the Cranial & Spinal Technologies (CST), Specialty
Therapies, and Neuromodulation divisions. Revenue of $2.288 billion increased 4.7% as reported and
4.2% organic, with a high-single digit organic increase in CST and
low-single digit organic increases in Specialty Therapies and
Neuromodulation.
- CST delivered high-single digit Core Spine growth on implant
pull-through fueled by continued adoption of the AiBLE™ ecosystem;
Neurosurgery grew mid-single digits on strong sales of
StealthStation™ navigation and O-arm™ imaging systems
- Specialty Therapies results driven by mid-single digit growth
in Neurovascular on strength in flow diversion and low-single digit
growth in ENT and Pelvic Health; excluding a product line
divestiture, Pelvic Health grew mid-single digits
- Neuromodulation drove mid-single digit growth in Targeted Drug
Delivery and low-single digit growth in Pain Stim
Medical Surgical Portfolio
The Medical Surgical
Portfolio includes the Surgical & Endoscopy (SE) and the
Patient Monitoring & Respiratory Interventions (PMRI)
divisions. Revenue of $2.142 billion
increased 7.0% as reported and 5.6% organic, with a high-single
digit organic increase in SE and low-single digit organic increase
in PMRI.
- SE results driven by low-double digit growth in General
Surgical Technologies, mid-single digit growth in Advanced Surgical
Technologies, and low-double digit growth in Endoscopy
- SE also drove installed base growth of the Hugo™
robotic-assisted surgery (RAS) system; received Investigational
Device Exemption (IDE) from U.S. FDA to begin the U.S. clinical
trial for Hugo™ RAS system for Hernia procedures
- PMRI results driven by low-single digit growth in Patient
Monitoring, with double-digit growth in Nellcor™ pulse oximetry
monitor sales; Respiratory Interventions results were flat, with
high-single digit growth in Airways offset by decreases in
Ventilator sales
Diabetes
Diabetes revenue of $610 million increased 9.7% as reported and 6.7%
organic.
- Non-U.S. Developed Markets grew mid-teens on continued MiniMed™
780G system adoption and increased CGM attachment rates on the
strength of the Guardian™ 4 sensor
- First full quarter of the U.S. launch of MiniMed™ 780G system
resulted in low-thirties sequential growth in U.S. Diabetes pump
revenue; overall, U.S. Diabetes declined mid-single digits
year-over-year on customer attrition versus the prior year;
customer base increased sequentially
- Received CE Mark and began phased launch for Simplera™
standalone CGM
Guidance
The company today raised its FY24 revenue
growth and EPS guidance.
The company increased its FY24 organic revenue growth guidance
to 4.75% versus the prior 4.5%. The organic revenue growth guidance
excludes the impact of foreign currency and revenue related to
certain businesses reported as Other. Including Other revenue and
the impact of foreign currency, if foreign currency exchange rates
as of the beginning of November hold, FY24 revenue growth on a
reported basis would be approximately 2.6%.
The company increased its FY24 diluted non-GAAP EPS guidance
from the prior range of $5.08 to
$5.16 to the new range of
$5.13 to $5.19, a 4 cent
increase at the midpoint. Given the change in foreign currency
exchange rates over the past quarter, the foreign exchange impact
on FY24 diluted non-GAAP EPS is now estimated to be 2 cents more unfavorable in the second half and
is estimated to be a 6% unfavorable impact for the full year.
"Overall, it was another good quarter as we delivered revenue,
margins, and earnings ahead of expectations. Combining our second
quarter outperformance with our updated tax and foreign currency
estimates, we're raising our full year organic revenue growth and
EPS guidance," said Karen Parkhill,
Medtronic EVP & chief financial officer. "Based on the changes
we've made to our operating model, incentives, and capital
allocation, among other drivers, we've positioned the company to
deliver consistent mid-single digit growth on the top line. As we
move ahead, translating this durable revenue growth into durable
earnings power remains a top priority."
Video Webcast Information
Medtronic will host a video
webcast today, November 21, at
8:00 a.m. EST (7:00 a.m. CST) 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 FY24 third and fourth quarter
results on Tuesday, February 20,
2024, and Thursday, May 23,
2024, respectively. Confirmation and additional details will
be provided closer to the specific event.
Financial Schedules
The second quarter financial
schedules and non-GAAP reconciliations can be viewed by clicking on
the Investor Events link at investorrelations.medtronic.com. To
view a printable PDF of the financial schedules and non-GAAP
reconciliations, click here. To view the second quarter earnings
presentation, click here.
MEDTRONIC
PLC
|
WORLD WIDE
REVENUE(1)
|
(Unaudited)
|
|
|
SECOND
QUARTER
|
|
|
YEAR-TO-DATE
|
|
REPORTED
|
|
|
|
ORGANIC
|
|
|
REPORTED
|
|
|
|
ORGANIC
|
(in
millions)
|
FY24
|
|
FY23
|
|
Growth
|
|
Currency
Impact(2)
|
|
Adjusted
FY24
|
|
Adjusted
FY23
|
|
Growth
|
|
|
FY24
|
|
FY23
|
|
Growth
|
|
Currency
Impact(2)
|
|
Adjusted
FY24
|
|
Adjusted
FY23
|
|
Growth
|
Cardiovascular
|
$
2,923
|
|
$
2,759
|
|
5.9 %
|
|
$
31
|
|
$
2,892
|
|
$
2,759
|
|
4.8 %
|
|
|
$
5,773
|
|
$
5,459
|
|
5.8 %
|
|
$
12
|
|
$
5,761
|
|
$
5,459
|
|
5.5 %
|
Cardiac Rhythm &
Heart Failure
|
1,492
|
|
1,417
|
|
5.3
|
|
18
|
|
1,474
|
|
1,417
|
|
4.0
|
|
|
2,938
|
|
2,798
|
|
5.0
|
|
11
|
|
2,927
|
|
2,798
|
|
4.6
|
Structural Heart &
Aortic
|
819
|
|
757
|
|
8.2
|
|
11
|
|
808
|
|
757
|
|
6.7
|
|
|
1,633
|
|
1,499
|
|
8.9
|
|
6
|
|
1,627
|
|
1,499
|
|
8.5
|
Coronary &
Peripheral Vascular
|
613
|
|
584
|
|
5.0
|
|
2
|
|
611
|
|
584
|
|
4.6
|
|
|
1,202
|
|
1,163
|
|
3.4
|
|
(5)
|
|
1,207
|
|
1,163
|
|
3.8
|
Neuroscience
|
2,288
|
|
2,186
|
|
4.7
|
|
10
|
|
2,278
|
|
2,186
|
|
4.2
|
|
|
4,506
|
|
4,301
|
|
4.8
|
|
(5)
|
|
4,511
|
|
4,301
|
|
4.9
|
Cranial & Spinal
Technologies
|
1,157
|
|
1,081
|
|
7.0
|
|
4
|
|
1,153
|
|
1,081
|
|
6.7
|
|
|
2,260
|
|
2,124
|
|
6.4
|
|
(3)
|
|
2,263
|
|
2,124
|
|
6.5
|
Specialty
Therapies
|
705
|
|
686
|
|
2.8
|
|
1
|
|
704
|
|
686
|
|
2.6
|
|
|
1,400
|
|
1,353
|
|
3.5
|
|
(7)
|
|
1,407
|
|
1,353
|
|
4.0
|
Neuromodulation
|
426
|
|
419
|
|
1.7
|
|
5
|
|
421
|
|
419
|
|
0.5
|
|
|
846
|
|
824
|
|
2.7
|
|
5
|
|
841
|
|
824
|
|
2.1
|
Medical
Surgical
|
2,142
|
|
2,002
|
|
7.0
|
|
27
|
|
2,115
|
|
2,002
|
|
5.6
|
|
|
4,181
|
|
3,935
|
|
6.3
|
|
16
|
|
4,165
|
|
3,935
|
|
5.8
|
Surgical &
Endoscopy
|
1,641
|
|
1,513
|
|
8.5
|
|
25
|
|
1,616
|
|
1,513
|
|
6.8
|
|
|
3,187
|
|
2,968
|
|
7.4
|
|
17
|
|
3,170
|
|
2,968
|
|
6.8
|
Patient Monitoring
& Respiratory Interventions
|
501
|
|
489
|
|
2.5
|
|
3
|
|
498
|
|
489
|
|
1.8
|
|
|
994
|
|
967
|
|
2.8
|
|
(2)
|
|
996
|
|
967
|
|
3.0
|
Diabetes
|
610
|
|
556
|
|
9.7
|
|
17
|
|
593
|
|
556
|
|
6.7
|
|
|
1,189
|
|
1,098
|
|
8.3
|
|
20
|
|
1,169
|
|
1,098
|
|
6.5
|
Other(3)
|
22
|
|
82
|
|
(73.2)
|
|
(1)
|
|
—
|
|
—
|
|
—
|
|
|
37
|
|
162
|
|
(77.2)
|
|
(5)
|
|
—
|
|
—
|
|
—
|
TOTAL
|
$
7,984
|
|
$
7,585
|
|
5.3 %
|
|
$
85
|
|
$
7,876
|
|
$
7,503
|
|
5.0 %
|
|
|
$
15,686
|
|
$
14,955
|
|
4.9 %
|
|
$
38
|
|
$
15,605
|
|
$
14,793
|
|
5.5 %
|
|
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million and,
therefore, may not sum.
|
(2)
|
The currency impact to
revenue measures the change in revenue between current and prior
year periods using constant exchange rates.
|
(3)
|
Includes inorganic
revenue from the divested Renal Care Solutions business and
Transition Manufacturing Agreements from previously divested
businesses.
|
MEDTRONIC
PLC
|
U.S.(1)(2) REVENUE
|
(Unaudited)
|
|
|
SECOND
QUARTER
|
|
|
YEAR-TO-DATE
|
|
REPORTED
|
|
ORGANIC
|
|
|
REPORTED
|
|
ORGANIC
|
(in
millions)
|
FY24
|
|
FY23
|
|
Growth
|
|
Adjusted
FY24
|
|
Adjusted
FY23
|
|
Growth
|
|
|
FY24
|
|
FY23
|
|
Growth
|
|
Adjusted
FY24
|
|
Adjusted
FY23
|
|
Growth
|
Cardiovascular
|
$
1,427
|
|
$
1,410
|
|
1.2 %
|
|
$
1,427
|
|
$
1,410
|
|
1.2 %
|
|
|
$
2,776
|
|
$
2,696
|
|
3.0 %
|
|
$
2,776
|
|
$
2,696
|
|
3.0 %
|
Cardiac Rhythm &
Heart Failure
|
782
|
|
776
|
|
0.8
|
|
782
|
|
776
|
|
0.8
|
|
|
1,502
|
|
1,481
|
|
1.4
|
|
1,502
|
|
1,481
|
|
1.4
|
Structural Heart &
Aortic
|
367
|
|
348
|
|
5.5
|
|
367
|
|
348
|
|
5.5
|
|
|
724
|
|
660
|
|
9.7
|
|
724
|
|
660
|
|
9.7
|
Coronary &
Peripheral Vascular
|
278
|
|
286
|
|
(2.8)
|
|
278
|
|
286
|
|
(2.8)
|
|
|
550
|
|
555
|
|
(0.9)
|
|
550
|
|
555
|
|
(0.9)
|
Neuroscience
|
1,560
|
|
1,512
|
|
3.2
|
|
1,560
|
|
1,512
|
|
3.2
|
|
|
3,057
|
|
2,931
|
|
4.3
|
|
3,057
|
|
2,931
|
|
4.3
|
Cranial & Spinal
Technologies
|
863
|
|
817
|
|
5.6
|
|
863
|
|
817
|
|
5.6
|
|
|
1,685
|
|
1,580
|
|
6.6
|
|
1,685
|
|
1,580
|
|
6.6
|
Specialty
Therapies
|
403
|
|
403
|
|
—
|
|
403
|
|
403
|
|
—
|
|
|
795
|
|
784
|
|
1.4
|
|
795
|
|
784
|
|
1.4
|
Neuromodulation
|
293
|
|
291
|
|
0.7
|
|
293
|
|
291
|
|
0.7
|
|
|
577
|
|
567
|
|
1.8
|
|
577
|
|
567
|
|
1.8
|
Medical
Surgical
|
963
|
|
895
|
|
7.6
|
|
963
|
|
895
|
|
7.6
|
|
|
1,845
|
|
1,726
|
|
6.9
|
|
1,845
|
|
1,726
|
|
6.9
|
Surgical &
Endoscopy
|
688
|
|
633
|
|
8.7
|
|
688
|
|
633
|
|
8.7
|
|
|
1,308
|
|
1,214
|
|
7.7
|
|
1,308
|
|
1,214
|
|
7.7
|
Patient Monitoring
& Respiratory Interventions
|
275
|
|
262
|
|
5.0
|
|
275
|
|
262
|
|
5.0
|
|
|
537
|
|
512
|
|
4.9
|
|
537
|
|
512
|
|
4.9
|
Diabetes
|
217
|
|
228
|
|
(4.8)
|
|
217
|
|
228
|
|
(4.8)
|
|
|
405
|
|
434
|
|
(6.7)
|
|
405
|
|
434
|
|
(6.7)
|
Other(3)
|
8
|
|
23
|
|
(65.2)
|
|
—
|
|
—
|
|
—
|
|
|
16
|
|
49
|
|
(67.3)
|
|
—
|
|
—
|
|
—
|
TOTAL
|
$
4,175
|
|
$
4,069
|
|
2.6 %
|
|
$
4,167
|
|
$
4,046
|
|
3.0 %
|
|
|
$
8,099
|
|
$
7,835
|
|
3.4 %
|
|
$
8,083
|
|
$
7,787
|
|
3.8 %
|
|
|
(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 inorganic
revenue from the divested Renal Care Solutions business and
Transition Manufacturing Agreements from previously divested
businesses.
|
MEDTRONIC
PLC
|
WORLD WIDE REVENUE:
GEOGRAPHIC (1)(2)
|
(Unaudited)
|
|
|
SECOND
QUARTER
|
|
|
YEAR-TO-DATE
|
|
REPORTED
|
|
|
|
ORGANIC
|
|
|
REPORTED
|
|
|
|
ORGANIC
|
(in
millions)
|
FY24
|
|
FY23
|
|
Growth
|
|
Currency
Impact(3)
|
|
Adjusted
FY24
|
|
Adjusted
FY23
|
|
Growth
|
|
|
FY24
|
|
FY23
|
|
Growth
|
|
Currency
Impact(3)
|
|
Adjusted
FY24
|
|
Adjusted
FY23
|
|
Growth
|
U.S.
|
$
1,427
|
|
$
1,410
|
|
1.2 %
|
|
$
—
|
|
$
1,427
|
|
$
1,410
|
|
1.2 %
|
|
|
$
2,776
|
|
$
2,696
|
|
3.0 %
|
|
$
—
|
|
$
2,776
|
|
$ 2,696
|
|
3.0 %
|
Non-U.S.
Developed
|
912
|
|
802
|
|
13.7
|
|
43
|
|
869
|
|
802
|
|
8.4
|
|
|
1,869
|
|
1,694
|
|
10.3
|
|
45
|
|
1,824
|
|
1,694
|
|
7.7
|
Emerging
Markets
|
584
|
|
546
|
|
7.0
|
|
(12)
|
|
596
|
|
546
|
|
9.2
|
|
|
1,128
|
|
1,070
|
|
5.4
|
|
(33)
|
|
1,161
|
|
1,070
|
|
8.5
|
Cardiovascular
|
2,923
|
|
2,759
|
|
5.9
|
|
31
|
|
2,892
|
|
2,759
|
|
4.8
|
|
|
5,773
|
|
5,459
|
|
5.8
|
|
12
|
|
5,761
|
|
5,459
|
|
5.5
|
U.S.
|
1,560
|
|
1,512
|
|
3.2
|
|
—
|
|
1,560
|
|
1,512
|
|
3.2
|
|
|
3,057
|
|
2,931
|
|
4.3
|
|
—
|
|
3,057
|
|
2,931
|
|
4.3
|
Non-U.S.
Developed
|
399
|
|
382
|
|
4.5
|
|
14
|
|
385
|
|
382
|
|
0.8
|
|
|
815
|
|
788
|
|
3.4
|
|
10
|
|
805
|
|
788
|
|
2.2
|
Emerging
Markets
|
329
|
|
292
|
|
12.7
|
|
(4)
|
|
333
|
|
292
|
|
14.0
|
|
|
634
|
|
582
|
|
8.9
|
|
(15)
|
|
649
|
|
582
|
|
11.5
|
Neuroscience
|
2,288
|
|
2,186
|
|
4.7
|
|
10
|
|
2,278
|
|
2,186
|
|
4.2
|
|
|
4,506
|
|
4,301
|
|
4.8
|
|
(5)
|
|
4,511
|
|
4,301
|
|
4.9
|
U.S.
|
963
|
|
895
|
|
7.6
|
|
—
|
|
963
|
|
895
|
|
7.6
|
|
|
1,845
|
|
1,726
|
|
6.9
|
|
—
|
|
1,845
|
|
1,726
|
|
6.9
|
Non-U.S.
Developed
|
740
|
|
685
|
|
8.0
|
|
27
|
|
713
|
|
685
|
|
4.1
|
|
|
1,512
|
|
1,420
|
|
6.5
|
|
21
|
|
1,491
|
|
1,420
|
|
5.0
|
Emerging
Markets
|
438
|
|
421
|
|
4.0
|
|
1
|
|
437
|
|
421
|
|
3.8
|
|
|
824
|
|
789
|
|
4.4
|
|
(5)
|
|
829
|
|
789
|
|
5.1
|
Medical
Surgical
|
2,142
|
|
2,002
|
|
7.0
|
|
27
|
|
2,115
|
|
2,002
|
|
5.6
|
|
|
4,181
|
|
3,935
|
|
6.3
|
|
16
|
|
4,165
|
|
3,935
|
|
5.8
|
U.S.
|
217
|
|
228
|
|
(4.8)
|
|
—
|
|
217
|
|
228
|
|
(4.8)
|
|
|
405
|
|
434
|
|
(6.7)
|
|
—
|
|
405
|
|
434
|
|
(6.7)
|
Non-U.S.
Developed
|
310
|
|
254
|
|
22.0
|
|
18
|
|
292
|
|
254
|
|
15.0
|
|
|
625
|
|
518
|
|
20.7
|
|
22
|
|
603
|
|
518
|
|
16.4
|
Emerging
Markets
|
84
|
|
74
|
|
13.5
|
|
(1)
|
|
85
|
|
74
|
|
14.9
|
|
|
159
|
|
145
|
|
9.7
|
|
(3)
|
|
162
|
|
145
|
|
11.7
|
Diabetes
|
610
|
|
556
|
|
9.7
|
|
17
|
|
593
|
|
556
|
|
6.7
|
|
|
1,189
|
|
1,098
|
|
8.3
|
|
20
|
|
1,169
|
|
1,098
|
|
6.5
|
U.S.
|
8
|
|
23
|
|
(65.2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
16
|
|
49
|
|
(67.3)
|
|
—
|
|
—
|
|
—
|
|
—
|
Non-U.S.
Developed
|
7
|
|
33
|
|
(78.8)
|
|
(1)
|
|
—
|
|
—
|
|
—
|
|
|
12
|
|
65
|
|
(81.5)
|
|
(2)
|
|
—
|
|
—
|
|
—
|
Emerging
Markets
|
7
|
|
25
|
|
(72.0)
|
|
(1)
|
|
—
|
|
—
|
|
—
|
|
|
10
|
|
48
|
|
(79.2)
|
|
(2)
|
|
—
|
|
—
|
|
—
|
Other(4)
|
22
|
|
82
|
|
(73.2)
|
|
(1)
|
|
—
|
|
—
|
|
—
|
|
|
37
|
|
162
|
|
(77.2)
|
|
(5)
|
|
—
|
|
—
|
|
—
|
U.S.
|
4,175
|
|
4,069
|
|
2.6
|
|
—
|
|
4,167
|
|
4,046
|
|
3.0
|
|
|
8,099
|
|
7,835
|
|
3.4
|
|
—
|
|
8,083
|
|
7,787
|
|
3.8
|
Non-U.S.
Developed
|
2,368
|
|
2,157
|
|
9.8
|
|
101
|
|
2,259
|
|
2,123
|
|
6.4
|
|
|
4,831
|
|
4,485
|
|
7.7
|
|
96
|
|
4,722
|
|
4,420
|
|
6.8
|
Emerging
Markets
|
1,441
|
|
1,359
|
|
6.0
|
|
(17)
|
|
1,451
|
|
1,334
|
|
8.8
|
|
|
2,755
|
|
2,635
|
|
4.6
|
|
(57)
|
|
2,800
|
|
2,586
|
|
8.3
|
TOTAL
|
$
7,984
|
|
$
7,585
|
|
5.3 %
|
|
$
85
|
|
$
7,876
|
|
$
7,503
|
|
5.0 %
|
|
|
$
15,686
|
|
$
14,955
|
|
4.9 %
|
|
$
38
|
|
$
15,605
|
|
$
14,793
|
|
5.5 %
|
|
|
(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 within 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)
|
The currency impact to
revenue measures the change in revenue between current and prior
year periods using constant exchange rates.
|
(4)
|
Includes inorganic
revenue from the divested Renal Care Solutions business and
Transition Manufacturing Agreements from previously divested
businesses.
|
MEDTRONIC
PLC
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(Unaudited)
|
|
|
Three months ended
|
|
Six months
ended
|
(in millions, except
per share data)
|
October 27,
2023
|
|
October 28,
2022
|
|
October 27,
2023
|
|
October 28,
2022
|
Net
sales
|
$
7,984
|
|
$
7,585
|
|
$
15,686
|
|
$
14,955
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of products sold,
excluding amortization of intangible assets
|
2,761
|
|
2,535
|
|
5,390
|
|
5,051
|
Research and
development expense
|
698
|
|
676
|
|
1,365
|
|
1,368
|
Selling, general, and
administrative expense
|
2,686
|
|
2,617
|
|
5,299
|
|
5,184
|
Amortization of
intangible assets
|
425
|
|
421
|
|
855
|
|
844
|
Restructuring charges,
net
|
40
|
|
30
|
|
94
|
|
44
|
Certain litigation
charges
|
65
|
|
—
|
|
105
|
|
—
|
Other operating
income, net
|
(31)
|
|
(97)
|
|
(30)
|
|
(62)
|
Operating
profit
|
1,340
|
|
1,404
|
|
2,608
|
|
2,528
|
Other non-operating
income, net
|
(154)
|
|
(109)
|
|
(230)
|
|
(192)
|
Interest expense,
net
|
180
|
|
118
|
|
329
|
|
282
|
Income before income
taxes
|
1,313
|
|
1,395
|
|
2,510
|
|
2,438
|
Income tax
provision
|
402
|
|
959
|
|
802
|
|
1,072
|
Net
income
|
911
|
|
435
|
|
1,708
|
|
1,367
|
Net income
attributable to noncontrolling interests
|
(2)
|
|
(8)
|
|
(8)
|
|
(10)
|
Net income
attributable to Medtronic
|
$
909
|
|
$
427
|
|
$
1,700
|
|
$
1,356
|
Basic earnings per
share
|
$
0.68
|
|
$
0.32
|
|
$
1.28
|
|
$
1.02
|
Diluted earnings per
share
|
$
0.68
|
|
$
0.32
|
|
$
1.28
|
|
$
1.02
|
Basic weighted
average shares outstanding
|
1,330.2
|
|
1,329.4
|
|
1,330.3
|
|
1,329.4
|
Diluted weighted
average shares outstanding
|
1,331.9
|
|
1,332.0
|
|
1,332.8
|
|
1,333.3
|
|
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.
|
MEDTRONIC
PLC
|
GAAP TO NON-GAAP
RECONCILIATIONS(1)
|
(Unaudited)
|
|
|
Three months ended
October 27, 2023
|
(in millions, except
per share data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to
Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax
Rate
|
GAAP
|
$
7,984
|
|
$
2,761
|
|
65.4 %
|
|
$ 1,340
|
|
16.8 %
|
|
$
1,313
|
|
$
909
|
|
$ 0.68
|
|
30.6 %
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
—
|
|
—
|
|
—
|
|
425
|
|
5.3
|
|
425
|
|
360
|
|
0.27
|
|
15.3
|
Restructuring and
associated costs (2)
|
—
|
|
(15)
|
|
0.2
|
|
91
|
|
1.1
|
|
91
|
|
76
|
|
0.06
|
|
17.6
|
Acquisition and
divestiture-related items (3)
|
—
|
|
(6)
|
|
0.1
|
|
58
|
|
0.7
|
|
58
|
|
51
|
|
0.04
|
|
12.1
|
Certain litigation
charges
|
—
|
|
—
|
|
—
|
|
65
|
|
0.8
|
|
65
|
|
50
|
|
0.04
|
|
23.1
|
(Gain)/loss on
minority investments (4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
25
|
|
21
|
|
0.02
|
|
20.0
|
Medical device
regulations (5)
|
—
|
|
(21)
|
|
0.3
|
|
30
|
|
0.4
|
|
30
|
|
24
|
|
0.02
|
|
20.0
|
Certain tax
adjustments, net (6)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
176
|
|
0.13
|
|
—
|
Non-GAAP
|
$
7,984
|
|
$
2,720
|
|
65.9 %
|
|
$ 2,009
|
|
25.2 %
|
|
$
2,008
|
|
$
1,667
|
|
$ 1.25
|
|
16.9 %
|
Currency
impact
|
(85)
|
|
(65)
|
|
0.5
|
|
121
|
|
1.8
|
|
|
|
|
|
0.08
|
|
|
Currency
Adjusted
|
$
7,899
|
|
$
2,655
|
|
66.4 %
|
|
$ 2,130
|
|
27.0 %
|
|
|
|
|
|
$ 1.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
October 28, 2022
|
(in millions, except
per share data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to
Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax
Rate
|
GAAP
|
$
7,585
|
|
$
2,535
|
|
66.6 %
|
|
$ 1,404
|
|
18.5 %
|
|
$
1,395
|
|
$
427
|
|
$ 0.32
|
|
68.7 %
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
—
|
|
—
|
|
—
|
|
421
|
|
5.6
|
|
421
|
|
356
|
|
0.27
|
|
15.4
|
Restructuring and
associated costs (2)
|
—
|
|
(21)
|
|
0.3
|
|
95
|
|
1.3
|
|
95
|
|
76
|
|
0.06
|
|
20.0
|
Acquisition and
divestiture-related items (3)
|
—
|
|
(39)
|
|
0.5
|
|
63
|
|
0.8
|
|
63
|
|
55
|
|
0.05
|
|
404.2
|
(Gain)/loss on
minority investments (4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(11)
|
|
(11)
|
|
(0.01)
|
|
—
|
Medical device
regulations (5)
|
—
|
|
(22)
|
|
0.3
|
|
37
|
|
0.5
|
|
37
|
|
30
|
|
0.02
|
|
18.9
|
Certain tax
adjustments, net (7)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
793
|
|
0.60
|
|
—
|
Non-GAAP
|
$
7,585
|
|
$
2,454
|
|
67.6 %
|
|
$ 2,020
|
|
26.6 %
|
|
$
1,999
|
|
$
1,725
|
|
$ 1.30
|
|
13.3 %
|
|
|
See description of
non-GAAP financial measures contained in the press release dated
November 21, 2023.
|
(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 primarily
include business combination costs, changes in fair value of
contingent consideration, and charges related to the impending
separation of the Patient Monitoring and Respiratory Interventions
businesses within our Medical Surgical Portfolio.
|
(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 (E.U.)
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 charge primarily
relates to the establishment of a valuation allowance against
certain net operating losses, and a withholding tax cost related to
the impending separation of the Patient Monitoring and Respiratory
Interventions businesses within our Medical Surgical
Portfolio.
|
(7)
|
The charge primarily
relates to a $764 million reserve adjustment that was a direct
result of the U.S. Tax Court opinion, issued on August 18, 2022, on
the previously disclosed litigation regarding the allocation of
income between Medtronic, Inc. and its wholly owned subsidiary
operating in Puerto Rico.
|
MEDTRONIC
PLC
|
GAAP TO NON-GAAP
RECONCILIATIONS(1)
|
(Unaudited)
|
|
|
Six months ended
October 27, 2023
|
(in millions, except
per share data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to
Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax
Rate
|
GAAP
|
$
15,686
|
|
$
5,390
|
|
65.6 %
|
|
$ 2,608
|
|
16.6 %
|
|
$
2,510
|
|
$
1,700
|
|
$ 1.28
|
|
32.0 %
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
—
|
|
—
|
|
—
|
|
855
|
|
5.5
|
|
855
|
|
724
|
|
0.54
|
|
15.2
|
Restructuring and
associated costs (2)
|
—
|
|
(30)
|
|
0.2
|
|
182
|
|
1.2
|
|
182
|
|
152
|
|
0.11
|
|
16.5
|
Acquisition and
divestiture-related items (3)
|
—
|
|
(12)
|
|
—
|
|
107
|
|
—
|
|
107
|
|
97
|
|
0.07
|
|
9.3
|
Certain litigation
charges
|
—
|
|
—
|
|
—
|
|
105
|
|
0.7
|
|
105
|
|
81
|
|
0.06
|
|
22.9
|
(Gain)/loss on
minority investments (4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
89
|
|
85
|
|
0.06
|
|
5.6
|
Medical device
regulations (5)
|
—
|
|
(42)
|
|
0.3
|
|
62
|
|
0.4
|
|
62
|
|
49
|
|
0.04
|
|
21.0
|
Certain tax
adjustments, net (6)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
375
|
|
0.28
|
|
—
|
Non-GAAP
|
$
15,686
|
|
$
5,306
|
|
66.2 %
|
|
$ 3,919
|
|
25.0 %
|
|
$
3,910
|
|
$
3,262
|
|
$ 2.45
|
|
16.4 %
|
Currency
impact
|
(38)
|
|
(66)
|
|
0.3
|
|
243
|
|
1.6
|
|
|
|
|
|
0.16
|
|
|
Currency
Adjusted
|
$
15,648
|
|
$
5,240
|
|
66.5 %
|
|
$ 4,162
|
|
26.6 %
|
|
|
|
|
|
$ 2.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six month ended
October 28, 2022
|
(in millions, except
per share data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to
Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax
Rate
|
GAAP
|
$
14,955
|
|
$
5,051
|
|
66.2 %
|
|
$ 2,528
|
|
16.9 %
|
|
$
2,438
|
|
$
1,356
|
|
$ 1.02
|
|
44.0 %
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
—
|
|
—
|
|
—
|
|
844
|
|
5.6
|
|
844
|
|
715
|
|
0.54
|
|
15.3
|
Restructuring and
associated costs (2)
|
—
|
|
(41)
|
|
0.3
|
|
171
|
|
1.1
|
|
171
|
|
136
|
|
0.10
|
|
20.5
|
Acquisition and
divestiture-related items (3)
|
—
|
|
(50)
|
|
0.3
|
|
174
|
|
1.2
|
|
174
|
|
157
|
|
0.12
|
|
38.8
|
(Gain)/loss on
minority investments (4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(15)
|
|
(15)
|
|
(0.01)
|
|
—
|
Medical device
regulations (5)
|
—
|
|
(40)
|
|
0.3
|
|
70
|
|
0.5
|
|
70
|
|
56
|
|
0.04
|
|
20.0
|
Debt redemption
premium and other charges (7)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
53
|
|
42
|
|
0.03
|
|
20.8
|
Certain tax
adjustments, net (8)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
780
|
|
0.59
|
|
—
|
Non-GAAP
|
$
14,955
|
|
$
4,921
|
|
67.1 %
|
|
$ 3,785
|
|
25.3 %
|
|
$
3,733
|
|
$
3,226
|
|
$ 2.42
|
|
13.3 %
|
|
|
See description of
non-GAAP financial measures contained in the press release dated
November 21, 2023.
|
(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 primarily
include business combination costs, changes in fair value of
contingent consideration, and charges related to the impending
separation of the Patient Monitoring and Respiratory Interventions
businesses within our Medical Surgical Portfolio. The prior year
included non-cash pre-tax impairments, primarily related to
goodwill and other associated costs, as a result of the April 1,
2023, sale of half of the Company's Renal Care Solutions (RCS)
business.
|
(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 charge relates to
an income tax reserve adjustment associated with the June 1, 2023,
Israeli Central-Lod District Court decision, the establishment
of a valuation allowance against certain net operating losses, a
withholding tax cost related to the impending separation of the
Patient Monitoring and Respiratory Interventions businesses, and
amortization of previously established deferred tax assets from
intercompany intellectual property transactions.
|
(7)
|
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.
|
(8)
|
The charge primarily
relates to a $764 million reserve adjustment that was a direct
result of the U.S. Tax Court opinion, issued on August 18, 2022, on
the previously disclosed litigation regarding the allocation of
income between Medtronic, Inc. and its wholly owned subsidiary
operating in Puerto Rico.
|
MEDTRONIC
PLC
|
GAAP TO NON-GAAP
RECONCILIATIONS(1)
|
(Unaudited)
|
|
|
Three months ended
October 27, 2023
|
(in
millions)
|
Net
Sales
|
|
SG&A
Expense
|
|
SG&A
Expense as
a % of Net
Sales
|
|
R&D
Expense
|
|
R&D
Expense
as a % of
Net Sales
|
|
Other
Operating
(Income)
Expense,
net
|
|
Other
Operating
(Inc.)/Exp.,
net as a % of
Net Sales
|
|
Other Non-
Operating
Income, net
|
GAAP
|
$ 7,984
|
|
$ 2,686
|
|
33.6 %
|
|
$ 698
|
|
8.7 %
|
|
$
(31)
|
|
(0.4) %
|
|
$
(154)
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
associated costs (2)
|
—
|
|
(36)
|
|
(0.5)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Acquisition and
divestiture-related items (3)
|
—
|
|
(26)
|
|
(0.3)
|
|
—
|
|
—
|
|
(26)
|
|
(0.3)
|
|
—
|
Medical device
regulations (4)
|
—
|
|
—
|
|
—
|
|
(9)
|
|
(0.1)
|
|
—
|
|
—
|
|
—
|
(Gain)/loss on
minority investments (5)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(25)
|
Non-GAAP
|
$ 7,984
|
|
$ 2,623
|
|
32.9 %
|
|
$ 688
|
|
8.6 %
|
|
$
(57)
|
|
(0.7) %
|
|
$
(179)
|
Currency
impact
|
(85)
|
|
(36)
|
|
(0.1)
|
|
(1)
|
|
0.1
|
|
(104)
|
|
(1.3)
|
|
4
|
Currency
Adjusted
|
$ 7,899
|
|
$ 2,587
|
|
32.8 %
|
|
$ 687
|
|
8.7 %
|
|
$
(161)
|
|
(2.0) %
|
|
$
(175)
|
|
|
Six months ended
October 27, 2023
|
(in
millions)
|
Net
Sales
|
|
SG&A
Expense
|
|
SG&A
Expense as
a % of Net
Sales
|
|
R&D
Expense
|
|
R&D
Expense
as a % of
Net Sales
|
|
Other
Operating
(Income)
Expense,
net
|
|
Other Operating
(Inc.)/Exp.,
net as a % of
Net Sales
|
|
Other Non-
Operating
Income, net
|
GAAP
|
$
15,686
|
|
$ 5,299
|
|
33.8 %
|
|
$
1,365
|
|
8.7 %
|
|
$
(30)
|
|
(0.2) %
|
|
$
(230)
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
associated costs (2)
|
—
|
|
(57)
|
|
(0.4)
|
|
—
|
|
—
|
|
1
|
|
—
|
|
—
|
Acquisition and
divestiture-related items (3)
|
—
|
|
(42)
|
|
(0.3)
|
|
—
|
|
—
|
|
(53)
|
|
(0.3)
|
|
—
|
Medical device
regulations (4)
|
—
|
|
(1)
|
|
—
|
|
(19)
|
|
(0.1)
|
|
—
|
|
—
|
|
—
|
(Gain)/loss on
minority investments (5)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(89)
|
Non-GAAP
|
$
15,686
|
|
$ 5,199
|
|
33.1 %
|
|
$
1,346
|
|
8.6 %
|
|
$
(83)
|
|
(0.5) %
|
|
$
(320)
|
Currency
impact
|
(38)
|
|
(31)
|
|
(0.1)
|
|
2
|
|
—
|
|
(186)
|
|
(1.2)
|
|
5
|
Currency
Adjusted
|
$
15,648
|
|
$ 5,168
|
|
33.0 %
|
|
$
1,348
|
|
8.6 %
|
|
$
(269)
|
|
(1.7) %
|
|
$
(315)
|
|
|
See description of
non-GAAP financial measures contained in the press release dated
November 21, 2023.
|
(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,
consulting expenses, and asset write-offs.
|
(3)
|
The charges primarily
include business combination costs, changes in fair value of
contingent consideration, and charges related to the impending
separation of the Patient Monitoring and Respiratory Interventions
businesses within our Medical Surgical Portfolio.
|
(4)
|
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.
|
(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.
|
MEDTRONIC
PLC
|
GAAP TO NON-GAAP
RECONCILIATIONS(1)
|
(Unaudited)
|
|
|
Six months
ended
|
(in
millions)
|
October 27,
2023
|
|
October 28,
2022
|
Net cash provided by
operating activities
|
$
1,536
|
|
$
2,005
|
Additions to property,
plant, and equipment
|
(815)
|
|
(749)
|
Free Cash
Flow(2)
|
$
721
|
|
$
1,256
|
|
See description of
non-GAAP financial measures contained in the press release dated
November 21, 2023.
|
(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.
|
MEDTRONIC
PLC
|
CONSOLIDATED BALANCE
SHEETS
|
(Unaudited)
|
|
(in millions)
|
|
October 27,
2023
|
|
April 28,
2023
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,311
|
|
$
1,543
|
Investments
|
|
6,423
|
|
6,416
|
Accounts receivable,
less allowances and credit losses of $177 and $176,
respectively
|
|
5,934
|
|
5,998
|
Inventories,
net
|
|
5,754
|
|
5,293
|
Other current
assets
|
|
2,658
|
|
2,425
|
Total current
assets
|
|
22,081
|
|
21,675
|
Property, plant, and
equipment, net
|
|
5,735
|
|
5,569
|
Goodwill
|
|
40,821
|
|
41,425
|
Other intangible
assets, net
|
|
14,060
|
|
14,844
|
Tax
assets
|
|
3,428
|
|
3,477
|
Other
assets
|
|
3,962
|
|
3,959
|
Total
assets
|
|
$
90,087
|
|
$
90,948
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current debt
obligations
|
|
$
1,339
|
|
$
20
|
Accounts
payable
|
|
2,174
|
|
2,662
|
Accrued
compensation
|
|
1,758
|
|
1,949
|
Accrued income
taxes
|
|
1,088
|
|
840
|
Other accrued
expenses
|
|
3,299
|
|
3,581
|
Total current
liabilities
|
|
9,659
|
|
9,051
|
Long-term
debt
|
|
23,741
|
|
24,344
|
Accrued compensation
and retirement benefits
|
|
1,020
|
|
1,093
|
Accrued income
taxes
|
|
1,777
|
|
2,360
|
Deferred tax
liabilities
|
|
686
|
|
708
|
Other
liabilities
|
|
1,556
|
|
1,727
|
Total
liabilities
|
|
38,440
|
|
39,283
|
Commitments and
contingencies
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Ordinary shares— par
value $0.0001, 2.6 billion shares authorized,
1,330,173,450 and 1,330,809,036 shares issued and outstanding,
respectively
|
|
—
|
|
—
|
Additional paid-in
capital
|
|
24,580
|
|
24,590
|
Retained
earnings
|
|
30,256
|
|
30,392
|
Accumulated other
comprehensive loss
|
|
(3,377)
|
|
(3,499)
|
Total shareholders'
equity
|
|
51,460
|
|
51,483
|
Noncontrolling
interests
|
|
187
|
|
182
|
Total
equity
|
|
51,647
|
|
51,665
|
Total liabilities
and equity
|
|
$
90,087
|
|
$
90,948
|
|
The data in this
schedule has been intentionally rounded to the nearest million,
and, therefore, may not sum.
|
MEDTRONIC
PLC
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
Six months
ended
|
(in
millions)
|
October 27,
2023
|
|
October 28,
2022
|
Operating
Activities:
|
|
|
|
Net income
|
$
1,708
|
|
$
1,367
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
1,344
|
|
1,339
|
Provision for credit
losses
|
37
|
|
41
|
Deferred income
taxes
|
(36)
|
|
(92)
|
Stock-based
compensation
|
219
|
|
199
|
Loss on debt
extinguishment
|
—
|
|
53
|
Other, net
|
182
|
|
148
|
Change in operating
assets and liabilities, net of acquisitions and
divestitures:
|
|
|
|
Accounts receivable,
net
|
(117)
|
|
(346)
|
Inventories,
net
|
(616)
|
|
(784)
|
Accounts payable and
accrued liabilities
|
(699)
|
|
(14)
|
Other operating assets
and liabilities
|
(486)
|
|
94
|
Net cash provided by
operating activities
|
1,536
|
|
2,005
|
Investing
Activities:
|
|
|
|
Acquisitions, net of
cash acquired
|
(22)
|
|
(1,867)
|
Additions to property,
plant, and equipment
|
(815)
|
|
(749)
|
Purchases of
investments
|
(3,403)
|
|
(3,743)
|
Sales and maturities
of investments
|
3,336
|
|
3,609
|
Other investing
activities, net
|
(59)
|
|
19
|
Net cash used in
investing activities
|
(963)
|
|
(2,731)
|
Financing
Activities:
|
|
|
|
Change in current debt
obligations, net
|
1,321
|
|
349
|
Proceeds from
short-term borrowings (maturities greater than 90 days)
|
—
|
|
2,284
|
Issuance of long-term
debt
|
—
|
|
3,430
|
Payments on long-term
debt
|
—
|
|
(2,311)
|
Dividends to
shareholders
|
(1,836)
|
|
(1,807)
|
Issuance of ordinary
shares
|
149
|
|
153
|
Repurchase of ordinary
shares
|
(378)
|
|
(477)
|
Other financing
activities
|
153
|
|
443
|
Net cash (used in)
provided by financing activities
|
(591)
|
|
2,064
|
Effect of exchange rate
changes on cash and cash equivalents
|
(214)
|
|
(223)
|
Net change in cash
and cash equivalents
|
(232)
|
|
1,114
|
Cash and cash
equivalents at beginning of period
|
1,543
|
|
3,714
|
Cash and cash
equivalents at end of period
|
$
1,311
|
|
$
4,828
|
Supplemental Cash
Flow Information
|
|
|
|
Cash paid
for:
|
|
|
|
Income
taxes
|
$
1,110
|
|
$
821
|
Interest
|
476
|
|
234
|
|
The data in this
schedule has been intentionally rounded to the nearest million,
and, therefore, may not sum.
|
About Medtronic
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 @Medtronic on X (formerly Twitter) 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 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.
Contacts:
|
|
|
|
Erika Winkels
|
Ryan
Weispfenning
|
Public
Relations
|
Investor
Relations
|
+1-763-526-8478
|
+1-763-505-4626
|
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SOURCE Medtronic plc