Cover
Cover - shares | 3 Months Ended | |
Jul. 30, 2021 | Aug. 31, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36820 | |
Entity Registrant Name | Medtronic plc | |
Entity Incorporation, State or Country Code | L2 | |
Entity Tax Identification Number | 98-1183488 | |
Entity Address, Address Line One | 20 On Hatch, Lower Hatch Street | |
Entity Address, City or Town | Dublin 2 | |
Entity Address, Country | IE | |
Country Region | 353 | |
City Area Code | 1 | |
Local Phone Number | 438-1700 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Ordinary Shares Outstanding | 1,345,809,975 | |
Entity Central Index Key | 0001613103 | |
Current Fiscal Year End Date | --04-29 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Entity Address, Postal Zip Code | D02 XH02 | |
Ordinary shares, par value $0.0001 per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Ordinary shares, par value $0.0001 per share | |
Trading Symbol | MDT | |
Security Exchange Name | NYSE | |
0.00% Senior Notes due 2022 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.00% Senior Notes due 2022 | |
Trading Symbol | MDT/22B | |
Security Exchange Name | NYSE | |
0.375% Senior Notes due 2023 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.375% Senior Notes due 2023 | |
Trading Symbol | MDT/23B | |
Security Exchange Name | NYSE | |
0.000% Senior Notes due 2023 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.000% Senior Notes due 2023 | |
Trading Symbol | MDT/23C | |
Security Exchange Name | NYSE | |
0.25% Senior Notes due 2025 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.25% Senior Notes due 2025 | |
Trading Symbol | MDT/25 | |
Security Exchange Name | NYSE | |
0.000% Senior Notes due 2025 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.000% Senior Notes due 2025 | |
Trading Symbol | MDT/25A | |
Security Exchange Name | NYSE | |
1.125% Senior Notes due 2027 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.125% Senior Notes due 2027 | |
Trading Symbol | MDT/27 | |
Security Exchange Name | NYSE | |
0.375% Senior Notes due 2028 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.375% Senior Notes due 2028 | |
Trading Symbol | MDT/28 | |
Security Exchange Name | NYSE | |
1.625% Senior Notes due 2031 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.625% Senior Notes due 2031 | |
Trading Symbol | MDT/31 | |
Security Exchange Name | NYSE | |
1.00% Senior Notes due 2031 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.00% Senior Notes due 2031 | |
Trading Symbol | MDT/31A | |
Security Exchange Name | NYSE | |
0.750% Senior Notes due 2032 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.750% Senior Notes due 2032 | |
Trading Symbol | MDT/32 | |
Security Exchange Name | NYSE | |
2.250% Senior Notes due 2039 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.250% Senior Notes due 2039 | |
Trading Symbol | MDT/39A | |
Security Exchange Name | NYSE | |
1.50% Senior Notes due 2039 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.50% Senior Notes due 2039 | |
Trading Symbol | MDT/39B | |
Security Exchange Name | NYSE | |
1.375% Senior Notes due 2040 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.375% Senior Notes due 2040 | |
Trading Symbol | MDT/40A | |
Security Exchange Name | NYSE | |
1.75% Senior Notes due 2049 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.75% Senior Notes due 2049 | |
Trading Symbol | MDT/49 | |
Security Exchange Name | NYSE | |
1.625% Senior Notes due 2050 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.625% Senior Notes due 2050 | |
Trading Symbol | MDT/50 | |
Security Exchange Name | NYSE |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 7,987 | $ 6,507 |
Costs and expenses: | ||
Cost of products sold | 2,598 | 2,505 |
Research and development expense | 750 | 621 |
Selling, general, and administrative expense | 2,547 | 2,417 |
Amortization of intangible assets | 436 | 440 |
Restructuring charges, net | 11 | 53 |
Certain litigation charges, net | 26 | (88) |
Other operating expense (income), net | 760 | (114) |
Operating profit | 859 | 673 |
Other non-operating income, net | (111) | (82) |
Interest expense | 137 | 171 |
Income before income taxes | 833 | 584 |
Income tax provision | 64 | 93 |
Net income | 769 | 491 |
Net income attributable to noncontrolling interests | (6) | (4) |
Net income attributable to Medtronic | $ 763 | $ 487 |
Basic earnings per share (usd per share) | $ 0.57 | $ 0.36 |
Diluted earnings per share (usd per share) | $ 0.56 | $ 0.36 |
Basic weighted average shares outstanding (shares) | 1,344.5 | 1,341.9 |
Diluted weighted average shares outstanding (shares) | 1,356.4 | 1,350 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 769 | $ 491 |
Other comprehensive income (loss), net of tax: | ||
Unrealized gain on investment securities | 12 | 125 |
Translation adjustment | (355) | 1,117 |
Net investment hedge | 424 | (1,112) |
Net change in retirement obligations | 19 | 3 |
Unrealized gain (loss) on cash flow hedges | 174 | (350) |
Other comprehensive income (loss) | 274 | (217) |
Comprehensive income including noncontrolling interests | 1,043 | 274 |
Comprehensive income attributable to noncontrolling interests | (4) | (9) |
Comprehensive income attributable to Medtronic | $ 1,039 | $ 265 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jul. 30, 2021 | Apr. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 3,004 | $ 3,593 |
Investments | 7,591 | 7,224 |
Accounts receivable, less allowances and credit losses of $257 and $241, respectively | 5,431 | 5,462 |
Inventories, net | 4,288 | 4,313 |
Other current assets | 2,120 | 1,955 |
Total current assets | 22,434 | 22,548 |
Property, plant, and equipment | 12,808 | 12,700 |
Accumulated depreciation | (7,646) | (7,479) |
Property, plant, and equipment, net | 5,162 | 5,221 |
Goodwill | 41,720 | 41,961 |
Other intangible assets, net | 16,890 | 17,740 |
Tax assets | 3,187 | 3,169 |
Other assets | 2,409 | 2,443 |
Total assets | 91,802 | 93,083 |
Current liabilities: | ||
Current debt obligations | 6 | 11 |
Accounts payable | 1,864 | 2,106 |
Accrued compensation | 1,901 | 2,482 |
Accrued income taxes | 341 | 435 |
Other accrued expenses | 3,652 | 3,475 |
Total current liabilities | 7,764 | 8,509 |
Long-term debt | 25,958 | 26,378 |
Accrued compensation and retirement benefits | 1,521 | 1,557 |
Accrued income taxes | 2,262 | 2,251 |
Deferred tax liabilities | 1,054 | 1,028 |
Other liabilities | 1,579 | 1,756 |
Total liabilities | 40,137 | 41,481 |
Commitments and contingencies (Note 16) | ||
Shareholders’ equity: | ||
Ordinary shares— par value $0.0001, 2.6 billion shares authorized, 1,344,671,106 and 1,345,400,671 shares issued and outstanding, respectively | 0 | 0 |
Additional paid-in capital | 26,184 | 26,319 |
Retained earnings | 28,511 | 28,594 |
Accumulated other comprehensive loss | (3,209) | (3,485) |
Total shareholders’ equity | 51,486 | 51,428 |
Noncontrolling interests | 178 | 174 |
Total equity | 51,664 | 51,602 |
Total liabilities and equity | $ 91,802 | $ 93,083 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jul. 30, 2021 | Apr. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 257 | $ 241 |
Ordinary shares, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares authorized (shares) | 2,600,000,000 | 2,600,000,000 |
Ordinary shares issued (shares) | 1,344,671,106 | 1,345,400,671 |
Ordinary shares outstanding (shares) | 1,344,671,106 | 1,345,400,671 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Cumulative effect of change in accounting principle | [1] | Total Shareholders’ Equity | Total Shareholders’ EquityCumulative effect of change in accounting principle | [1] | Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative effect of change in accounting principle | [1] | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Beginning balance (shares) at Apr. 24, 2020 | 1,341,000,000 | ||||||||||||
Beginning balance at Apr. 24, 2020 | $ 50,872 | $ (24) | $ 50,737 | $ (24) | $ 0 | $ 26,165 | $ 28,132 | $ (24) | $ (3,560) | $ 135 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 491 | 487 | 487 | 4 | |||||||||
Other comprehensive (loss) income | (217) | (222) | (222) | 5 | |||||||||
Dividends to shareholders | (778) | (778) | (778) | ||||||||||
Issuance of shares under stock purchase and award plans (shares) | 2,000,000 | ||||||||||||
Issuance of shares under stock purchase and award plans | 26 | 26 | 26 | ||||||||||
Stock-based compensation | 70 | 70 | 70 | ||||||||||
Changes to noncontrolling ownership interests | 3 | 3 | |||||||||||
Ending balance (shares) at Jul. 31, 2020 | 1,343,000,000 | ||||||||||||
Ending balance at Jul. 31, 2020 | $ 50,443 | 50,296 | $ 0 | 26,261 | 27,817 | (3,782) | 147 | ||||||
Beginning balance (shares) at Apr. 30, 2021 | 1,345,400,671 | 1,345,000,000 | |||||||||||
Beginning balance at Apr. 30, 2021 | $ 51,602 | 51,428 | $ 0 | 26,319 | 28,594 | (3,485) | 174 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 769 | 763 | 763 | 6 | |||||||||
Other comprehensive (loss) income | 274 | 276 | 276 | (2) | |||||||||
Dividends to shareholders | (846) | (846) | (846) | ||||||||||
Issuance of shares under stock purchase and award plans (shares) | 2,000,000 | ||||||||||||
Issuance of shares under stock purchase and award plans | 107 | 107 | 107 | ||||||||||
Repurchase of ordinary shares (shares) | (2,000,000) | ||||||||||||
Repurchase of ordinary shares | (311) | (311) | (311) | ||||||||||
Stock-based compensation | $ 69 | 69 | 69 | ||||||||||
Ending balance (shares) at Jul. 30, 2021 | 1,344,671,106 | 1,345,000,000 | |||||||||||
Ending balance at Jul. 30, 2021 | $ 51,664 | $ 51,486 | $ 0 | $ 26,184 | $ 28,511 | $ (3,209) | $ 178 | ||||||
[1] | The cumulative effect of change in accounting principle during the first quarter of fiscal year 2021 resulted from the adoption of accounting guidance that requires the recognition of an allowance that reflects the current estimate of credit losses expected to be incurred over the life of certain financial instruments and financial assets, including trade receivables. As a result of the adoption, the Company adjusted the opening balance of retained earnings for $24 million as of April 25, 2020. |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends to shareholders (usd per share) | $ 0.63 | $ 0.58 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Operating Activities: | ||
Net income | $ 769 | $ 491 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 671 | 669 |
Provision for doubtful accounts | 15 | 37 |
Deferred income taxes | (11) | 3 |
Stock-based compensation | 69 | 70 |
MCS asset impairment and inventory write-down | 515 | 0 |
Other, net | 116 | 68 |
Change in operating assets and liabilities, net of acquisitions and divestitures: | ||
Accounts receivable, net | (40) | (142) |
Inventories | (75) | (235) |
Accounts payable and accrued liabilities | (416) | (541) |
Other operating assets and liabilities | (321) | (142) |
Net cash provided by operating activities | 1,292 | 278 |
Investing Activities: | ||
Additions to property, plant, and equipment | (378) | (334) |
Purchases of investments | (2,654) | (2,045) |
Sales and maturities of investments | 2,324 | 2,403 |
Other investing activities, net | (76) | (16) |
Net cash provided by (used in) investing activities | (784) | 8 |
Financing Activities: | ||
Change in current debt obligations, net | 0 | (16) |
Proceeds from short-term borrowings (maturities greater than 90 days) | 0 | 2,789 |
Payments on long-term debt | (1) | (11) |
Dividends to shareholders | (846) | (778) |
Issuance of ordinary shares | 111 | 26 |
Repurchase of ordinary shares | (315) | 0 |
Other financing activities | (4) | (51) |
Net cash provided by (used in) financing activities | (1,055) | 1,959 |
Effect of exchange rate changes on cash and cash equivalents | (42) | 114 |
Net change in cash and cash equivalents | (589) | 2,359 |
Cash and cash equivalents at beginning of period | 3,593 | 4,140 |
Cash and cash equivalents at end of period | 3,004 | 6,499 |
Cash paid for: | ||
Income taxes | 249 | 72 |
Interest | $ 63 | $ 72 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of Medtronic plc and its subsidiaries (Medtronic plc, Medtronic, or the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S.) (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the consolidated financial statements include all the adjustments necessary for a fair statement in conformity with U.S. GAAP. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. The Covid-19 pandemic ("COVID-19" or the "pandemic") has had, and may continue to have, an adverse effect on our business, results of operations, financial condition, and cash flows, and its future impacts remain highly uncertain and unpredictable. While there was not a material impact to the Company’s consolidated financial statements as of and for the three months ended July 30, 2021, changes in the Company’s assessment about the length and severity of the pandemic, as well as other factors, could result in actual results differing from estimates. The accompanying unaudited consolidated financial statements include the accounts of Medtronic plc, its wholly-owned subsidiaries, entities for which the Company has a controlling financial interest, and variable interest entities for which the Company is the primary beneficiary. Intercompany transactions and balances have been eliminated in consolidation. Amounts reported in millions within this quarterly report are computed based on the amounts in thousands, and therefore, the sum of the components may not equal the total amount reported in millions due to rounding. Additionally, certain columns and rows within tables may not sum due to rounding. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Jul. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting PronouncementsRecently AdoptedFor the three months ended July 30, 2021, there were no newly adopted accounting pronouncements that had a material impact to our consolidated financial statements. As of July 30, 2021, there are no recently issued but not yet adopted accounting pronouncements that are expected to materially impact our consolidated financial statements. |
Revenue
Revenue | 3 Months Ended |
Jul. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company's revenues are principally derived from device-based medical therapies and services related to cardiac rhythm disorders, cardiovascular disease, renal disease, neurological disorders and diseases, spinal conditions and musculoskeletal trauma, chronic pain, urological and digestive disorders, ear, nose, and throat conditions, and diabetes conditions as well as advanced and general surgical care products, respiratory and monitoring solutions, and neurological surgery technologies. The Company's primary customers include healthcare systems, clinics, third-party healthcare providers, distributors, and other institutions, including governmental healthcare programs and group purchasing organizations. During the fourth quarter of fiscal year 2021, the Company realigned its divisions within Cardiovascular. As a result, fiscal year 2021 revenue has been recast to adjust for these realignments. Additionally, the Company implemented a new operating model in fiscal year 2021, which was fully operational beginning in the fourth quarter. The table below illustrates net sales by segment and division for the three months ended July 30, 2021 and July 31, 2020: Three months ended (in millions) July 30, 2021 July 31, 2020 Cardiac Rhythm & Heart Failure $ 1,483 $ 1,247 Structural Heart & Aortic 787 627 Coronary & Peripheral Vascular 620 558 Cardiovascular 2,890 2,433 Surgical Innovations 1,554 1,080 Respiratory, Gastrointestinal, & Renal 768 720 Medical Surgical 2,322 1,801 Cranial & Spinal Technologies 1,123 944 Specialty Therapies 641 453 Neuromodulation 440 314 Neuroscience 2,204 1,712 Diabetes 572 562 Total $ 7,987 $ 6,507 The table below illustrates net sales by market geography for each segment for the three months ended July 30, 2021 and July 31, 2020: U.S. (1) Non-U.S. Developed Markets (2) Emerging Markets (3) Three months ended Three months ended Three months ended (in millions) July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 Cardiovascular $ 1,420 $ 1,206 $ 1,003 $ 853 $ 467 $ 374 Medical Surgical 990 722 869 719 463 359 Neuroscience 1,446 1,136 465 376 293 199 Diabetes 245 287 263 226 63 48 Total $ 4,101 $ 3,351 $ 2,601 $ 2,175 $ 1,286 $ 981 (1) U.S. includes the United States and U.S. territories. (2) Non-U.S. developed markets include Japan, Australia, New Zealand, Korea, Canada, and the countries within Western Europe. (3) Emerging markets include the countries of the Middle East, Africa, Latin America, Eastern Europe, and the countries of Asia that are not included in the non-U.S. developed markets, as defined above. The amount of revenue recognized is reduced by sales rebates and returns. Adjustments to rebates and returns reserves are recorded as increases or decreases to revenue. At July 30, 2021, $987 million of rebates were classified as other accrued expenses , and $535 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheet. At April 30, 2021, $906 million of rebates were classified as other accrued expenses, and $485 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheet. For the three months ended July 30, 2021 and July 31, 2020, adjustments to rebate and return reserves recognized in revenue that were included in the rebate and return reserves at the beginning of the period were not material. Deferred Revenue and Remaining Performance Obligations The Company records a deferred revenue liability if a customer pays consideration, or the Company has the right to invoice, before the Company transfers a good or service to the customer. Deferred revenue at July 30, 2021 and April 30, 2021 was $375 million and $368 million, respectively. At July 30, 2021 and April 30, 2021, $278 million and $276 million was included in other accrued expenses, and $96 million and $93 million was included in other liabilities, respectively. During the three months ended July 30, 2021, the Company recognized $84 million of revenue that was included in deferred revenue as of April 30, 2021. |
Acquisitions
Acquisitions | 3 Months Ended |
Jul. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions The Company had no acquisitions that were accounted for as business combinations during the three months ended July 30, 2021 or July 31, 2020. For the three months ended July 30, 2021, purchase price allocation adjustments were not significant. During the three months ended July 31, 2020, the Company recognized a gain of $132 million related to a change in amounts accrued for certain contingent liabilities from a recent acquisition. The benefit was recognized in other operating expense (income), net in the consolidated statements of income as the purchase accounting was finalized in fiscal year 2020. Acquired In-Process Research & Development (IPR&D) IPR&D with no alternative future use acquired outside of a business combination is expensed immediately. During the three months ended July 30, 2021, the Company acquired $90 million in connection with asset acquisitions, which was recognized in research and development expense in the consolidated statements of income. During the three months ended July 31, 2020, IPR&D acquired in connection with asset acquisitions was not significant. Contingent Consideration Certain of the Company’s business combinations involve potential payment of future consideration that is contingent upon the achievement of certain product development milestones and/or contingent on the acquired business reaching certain performance milestones. A liability is recorded for the estimated fair value of the contingent consideration on the acquisition date. The fair value of the contingent consideration is remeasured at each reporting period, and the change in fair value is recognized within other operating expense (income), net in the consolidated statements of income. Contingent consideration payments made soon after the acquisition date are classified as investing activities in the consolidated statements of cash flows. Contingent consideration payments not made soon after the acquisition date that are related to the acquisition date fair value are reported as financing activities in the consolidated statements of cash flows, and amounts paid in excess of the original acquisition date fair value are reported as operating activities in the consolidated statements of cash flows. The fair value of contingent consideration at July 30, 2021 and April 30, 2021 was $294 million and $270 million, respectively. At July 30, 2021, $99 million was recorded in other accrued expenses , and $195 million was recorded in other liabilities in the consolidated balance sheet. At April 30, 2021, $78 million was recorded in other accrued expenses , and $192 million was recorded in other liabilities in the consolidated balance sheet. The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Three months ended (in millions) July 30, 2021 July 31, 2020 Beginning balance $ 270 280 Purchase price allocation adjustments 25 — Payments (11) (1) Change in fair value 10 18 Ending balance $ 294 $ 297 The fair value of contingent consideration is measured using projected payment dates, discount rates, probabilities of payment, and projected revenues (for revenue-based consideration). Projected revenues are based on the Company's most recent internal operational budgets and long-range strategic plans. Changes in projected payment dates, discount rates, probabilities of payment, and projected revenues may result in adjustments to the fair value measurement. The recurring Level 3 fair value measurements of contingent consideration for which a liability is recorded include the following significant unobservable inputs: Fair Value at (in millions) July 30, 2021 Unobservable Input Range Weighted Average (1) Discount rate 11.2% - 31.6% 17.2% Revenue and other performance-based payments $259 Probability of payment 30% - 100% 91.4% Projected fiscal year of payment 2022 - 2027 2024 Discount rate 5.5% 5.5% Product development and other milestone-based payments $35 Probability of payment 100% 100.0% Projected fiscal year of payment 2022 - 2027 2024 (1) Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. For projected fiscal year of payment, the amount represents the median of the inputs and is not a weighted average. |
Restructuring and Other Costs
Restructuring and Other Costs | 3 Months Ended |
Jul. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs | Restructuring and Other Costs Enterprise Excellence In the third quarter of fiscal year 2018, the Company announced its Enterprise Excellence restructuring program, which was designed to leverage the Company's global size and scale, as well as enhance the customer and employee experience, with a focus on three objectives: global operations, functional optimization, and commercial optimization. Primary activities of the restructuring program include integrating and enhancing global manufacturing and supply processes, systems and site presence, enhancing and leveraging global operating models across several enabling functions, and optimizing certain commercial processes, systems, and models. Since inception, the Company has incurred pre-tax exit and disposal costs and other costs, across all segments, of $1.4 billion in connection with the Enterprise Excellence program. In total, the Company estimates it will recognize approximately $1.6 billion to $1.8 billion of exit and disposal costs and other costs related to the Enterprise Excellence program, the majority of which are expected to be incurred by the end of this fiscal year. Approximately 40 percent of the estimated charges are related to employee termination benefits. The remaining charges are costs associated with the restructuring program, such as salaries and benefits for employees supporting the program, including program management and transition teams, and strategic and operational consulting services related to the three objectives of the program discussed above. These charges are recognized within restructuring charges, net, cost of products sold, and selling, general, and administrative expense in the consolidated statements of income. For the three months ended July 30, 2021, the Company recognized net charges of $74 million, of which $33 million were recognized within cost of products sold and $30 million were recognized within selling, general, and administrative expense in the consolidated statements of income. For the three months ended July 31, 2020, the Company recognized net charges of $77 million, of which $27 million were recognized within cost of products sold and $47 million were recognized within selling, general, and administrative expense in the consolidated statements of income. The following table summarizes the activity related to the Enterprise Excellence restructuring program for the three months ended July 30, 2021: (in millions) Employee Termination Benefits Associated Costs (1) Other Costs Total April 30, 2021 $ 64 $ 18 $ 1 $ 83 Charges 12 63 — 75 Cash payments (14) (68) — (82) Accrual adjustments (2) (1) — — (1) July 30, 2021 $ 61 $ 13 $ 1 $ 75 (1) Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses. (2) Accrual adjustments relate to certain employees identified for termination finding other positions within the Company and contract terminations being settled for less than originally estimated. Simplification In the first quarter of fiscal year 2021, the Company initiated the Simplification restructuring program, designed to make the Company a more nimble and competitive organization focused on accelerating innovation, enhancing the customer experience, driving revenue growth, and winning market share, while also more efficiently and effectively leveraging the enterprise scale. Under the oversight of the portfolio leaders, this new operating model, which became fully operational the beginning of the fourth quarter of fiscal year 2021, simplifies the Company's organizational structure and accelerates decision-making and execution. Primary activities of the restructuring program included reorganizing the Company into a portfolio-level structure, including the creation of highly focused, accountable, and empowered Operating Units (OUs), consolidating Operations at the enterprise level, establishing Technology Development Centers in areas where the Company has deep core technology competencies to be leveraged by multiple OUs, and forming dedicated sales organizations that leverage the Company's scale but move with the same agility as smaller, local competitors. Since inception, the Company has incurred pre-tax exit and disposal costs and other costs, across all segments, of $274 million in connection with the Simplification program. In total, the Company estimates it will recognize approximately $400 million to $450 million of exit and disposal costs and other costs related to the Simplification program, the majority of which are expected to be incurred by the end of this fiscal year. Approximately three quarters of the estimated charges are related to employee termination benefits. The remaining charges are costs associated with the restructuring program, such as salaries for employees supporting the program and consulting expenses. These charges are recognized within restructuring charges, net , cost of products sold , and selling, general, and administrative expense in the consolidated statements of income. For the three months ended July 30, 2021, the Company recognized net charges of $7 million, which were all recognized within selling, general, and administrative expense in the consolidated statements of income. For the three months ended July 31, 2020, the Company recognized net charges of $51 million, which primarily included $50 million recognized within restructuring charges, net in the consolidated statements of income, mostly comprised of employee termination benefits. The following table summarizes the activity related to the Simplification restructuring program for three months ended July 30, 2021: (in millions) Employee Termination Benefits Associated Costs (1) Total April 30, 2021 $ 59 $ 4 $ 63 Charges 3 7 10 Cash payments (32) (9) (41) Accrual adjustments (2) (3) — (3) July 30, 2021 $ 27 $ 2 $ 29 (1) Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses. (2) Accrual adjustments relate to certain employees identified for termination finding other positions within the Company. Mechanical Circulatory Support (MCS) On June 3, 2021, the Company announced the decision to stop the distribution and sale of the Medtronic HVAD System in light of a growing body of observational clinical comparisons indicating a lower frequency of neurological adverse events and mortality with another circulatory support device available to patients compared to the HVAD system. In connection with this decision, the Company recorded charges of $726 million (MCS charges) within the Cardiovascular segment during the quarter, including $58 million recognized in costs of products sold and $668 million recognized within other operating expense (income), net in the consolidated statement of income . The charges include $515 million of non-cash impairments and write-downs primarily related to $409 million of intangible asset impairments and $58 million of inventory write-downs. The Company also recorded charges of $211 million for commitments and obligations associated with the decision, which include charges for patient support obligations, restructuring, and other associated costs. As of July 30, 2021, accruals were recorded in the consolidated balance sheet for these obligations, with $130 million reflected in other accrued expenses and $41 million recorded in other liabilities . Medtronic remains committed to serving the needs of the approximately 4,000 patients currently implanted with the HVAD system. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Jul. 30, 2021 | |
Investments [Abstract] | |
Financial Instruments | Financial Instruments Debt Securities The Company holds investments in marketable debt securities that are classified and accounted for as available-for-sale and are remeasured on a recurring basis. The following tables summarize the Company's investments in available-for-sale debt securities by significant investment category and the related consolidated balance sheet classification at July 30, 2021 and April 30, 2021: July 30, 2021 Valuation Balance Sheet Classification (in millions) Cost Unrealized Unrealized Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 522 $ 29 $ (2) $ 549 $ 549 $ — Level 2: Corporate debt securities 4,807 104 (10) 4,901 4,901 — U.S. government and agency securities 880 1 (3) 878 878 — Mortgage-backed securities 649 24 (16) 656 656 — Non-U.S. government and agency securities 30 1 — 31 31 — Certificates of deposit 15 — — 15 15 Other asset-backed securities 552 3 — 555 555 — Debt funds 6 — — 6 6 — Total Level 2 6,939 133 (30) 7,042 7,042 — Level 3: Auction rate securities 36 — (3) 33 — 33 Total available-for-sale debt securities $ 7,497 $ 162 $ (35) $ 7,624 $ 7,591 $ 33 April 30, 2021 Valuation Balance Sheet Classification (in millions) Cost Unrealized Unrealized Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 505 $ 26 $ (3) $ 528 $ 528 $ — Level 2: Corporate debt securities 4,557 103 (13) 4,647 4,647 — U.S. government and agency securities 810 — (7) 804 804 — Mortgage-backed securities 645 21 (16) 650 650 — Non-U.S. government and agency securities 31 1 — 33 33 — Certificates of deposit 19 — — 19 19 Other asset-backed securities 534 4 (1) 537 537 — Debt funds 7 — — 7 7 — Total Level 2 6,603 129 (36) 6,696 6,696 — Level 3: Auction rate securities 36 — (3) 33 — 33 Total available-for-sale debt securities $ 7,144 $ 155 $ (42) $ 7,257 $ 7,224 $ 33 The amortized cost of debt securities excludes accrued interest, which is reported in other current assets in the consolidated balance sheets. The following tables present the gross unrealized losses and fair values of the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category at July 30, 2021 and April 30, 2021: July 30, 2021 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized U.S. government and agency securities $ 976 $ (6) $ — $ — Corporate debt securities — — 3,265 (10) Mortgage-backed securities — — 656 (16) Auction rate securities — — 33 (3) Total $ 976 $ (6) $ 3,954 $ (29) April 30, 2021 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized U.S. government and agency securities $ 946 $ (10) $ — $ — Corporate debt securities — — 3,209 (13) Mortgage-backed securities — — 650 (16) Other asset-backed securities — — 531 (1) Auction rate securities — — 33 (3) Total $ 946 $ (10) $ 4,423 $ (32) The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. There were no transfers into or out of Level 3 during the three months ended July 30, 2021 and July 31, 2020. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Activity related to the Company’s available-for-sale debt securities portfolio is as follows: Three months ended (in millions) July 30, 2021 July 31, 2020 Proceeds from sales $ 2,272 $ 2,403 Gross realized gains 4 5 Gross realized losses (2) (6) The July 30, 2021 balance of available-for-sale debt securities by contractual maturity is shown in the following table. Within the table, maturities of mortgage-backed securities have been allocated based upon timing of estimated cash flows assuming no change in the current interest rate environment. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. (in millions) July 30, 2021 Due in one year or less $ 2,170 Due after one year through five years 2,978 Due after five years through ten years 1,817 Due after ten years 660 Total $ 7,624 Equity Securities, Equity Method Investments, and Other Investments The Company holds investments in equity securities with readily determinable fair values, equity investments without readily determinable fair values, investments accounted for under the equity method, and other investments. Equity securities with readily determinable fair values are included in Level 1 of the fair value hierarchy, as they are measured using quoted market prices. Equity method investments and investments without readily determinable fair values are included within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value. To determine the fair value of these investments, the Company uses all pertinent financial information available related to the investees, including financial statements, market participant valuations from recent and proposed equity offerings, and other third-party data. The following table summarizes the Company's equity and other investments at July 30, 2021 and April 30, 2021, which are classified as other assets in the consolidated balance sheets: (in millions) July 30, 2021 April 30, 2021 Investments with readily determinable fair value (marketable equity securities) $ 74 $ 74 Investments without readily determinable fair values 540 537 Equity method and other investments 78 76 Total equity and other investments $ 692 $ 687 The table below includes activity related to the Company’s portfolio of equity and other investments. Gains and losses on equity and other investments are recognized in other non-operating income, net in the consolidated statements of income. Three months ended (in millions) July 30, 2021 July 31, 2020 Proceeds from sales $ 52 $ — Gross gains 58 12 Gross losses (5) — Impairment losses recognized (10) (2) |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Jul. 30, 2021 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements Commercial Paper The Company maintains commercial paper programs that allow the Company to issue U.S. dollar or Euro-denominated unsecured commercial paper notes. The aggregate amount outstanding at any time under the commercial paper programs may not exceed the equivalent of $3.5 billion. No commercial paper was outstanding at July 30, 2021 and April 30, 2021. The issuance of commercial paper reduces the amount of credit available under the Company’s existing Credit Facility, as defined below. Line of Credit The Company has a $3.5 billion five-year unsecured revolving credit facility (Credit Facility), which provides back-up funding for the commercial paper programs described above. The Credit Facility includes a multi-currency borrowing feature for certain specified foreign currencies. At July 30, 2021 and April 30, 2021, no amounts were outstanding under the Credit Facility. Interest rates on advances on the Credit Facility are determined by a pricing matrix, based on the Company’s long-term debt ratings, assigned by Standard & Poor’s Ratings Services and Moody’s Investors Service. Facility fees are payable on the Credit Facility and are determined in the same manner as the interest rates. The Company is in compliance with the covenants under the Credit Facility. Debt Obligations The Company's debt obligations consisted of the following: (in millions) Maturity by July 30, 2021 April 30, 2021 Current debt obligations 2022 - 2023 $ 6 $ 11 Long-term debt 0.000 percent three 2023 887 907 0.375 percent four 2023 1,773 1,813 0.000 percent two 2023 1,478 1,511 3.500 percent ten 2025 1,890 1,890 0.250 percent six 2026 1,182 1,209 0.000 percent five 2026 1,182 1,209 3.350 percent ten 2027 368 368 1.125 percent eight 2027 1,773 1,813 0.375 percent eight 2029 1,182 1,209 1.625 percent twelve 2031 1,182 1,209 1.000 percent twelve 2032 1,182 1,209 0.750 percent twelve 2033 1,182 1,209 4.375 percent twenty 2035 1,932 1,932 6.550 percent thirty 2038 253 253 6.500 percent thirty 2039 158 158 2.250 percent twenty 2039 1,182 1,209 5.550 percent thirty 2040 224 224 1.500 percent twenty 2040 1,182 1,209 1.375 percent twenty 2041 1,182 1,209 4.500 percent thirty 2042 105 105 4.000 percent thirty 2043 305 305 4.625 percent thirty 2044 127 127 4.625 percent thirty 2045 1,813 1,813 1.750 percent thirty 2050 1,182 1,209 1.625 percent thirty 2051 1,182 1,209 Finance lease obligations 2022 - 2036 60 62 Deferred financing costs 2022 - 2051 (120) (125) Debt discount, net 2022 - 2051 (71) (75) Long-term debt $ 25,958 $ 26,378 Senior Notes The Company has outstanding unsecured senior obligations, described as senior notes in the tables above (collectively, the Senior Notes). The Senior Notes rank equally with all other unsecured and unsubordinated indebtedness of the Company. The Company is in compliance with all covenants related to the Senior Notes. In September 2020, Medtronic Global Holdings S.C.A. (Medtronic Luxco) issued six tranches of Euro-denominated Senior Notes with an aggregate principal of €6.3 billion, with maturities ranging from fiscal year 2023 to fiscal year 2051, resulting in cash proceeds of approximately $7.2 billion, net of discounts and issuance costs. The Company used the net proceeds of the offering to fund the early redemption of $4.3 billion of Medtronic Inc. and CIFSA Senior Notes and €1.5 billion of Medtronic Luxco Senior Notes for $6.3 billion of total consideration in October 2020. Additionally, the Company used the proceeds to repay its €750 million floating rate senior notes at maturity in March 2021. The Company recognized a loss on debt extinguishment of $308 million during the second quarter of fiscal year 2021, which primarily included cash premiums and accelerated amortization of deferred financing costs and debt discounts and premiums. The loss was recognized in interest expense in the consolidated statement of income. The Euro-denominated debt issued in September 2020 is designated as a net investment hedge of certain of the Company's European operations. Refer to Note 8 for additional information regarding the net investment hedge. Term Loan Agreements On May 12, 2020, Medtronic Luxco entered into a term loan agreement (Loan Agreement) by and among Medtronic Luxco, Medtronic plc, Medtronic, Inc., and Mizuho Bank, Ltd. as administrative agent and as lender. The Loan Agreement provides an unsecured term loan in an aggregate principal amount of up to ¥300 billion, with a term of six months and the option to extend for an additional six months at Medtronic Luxco’s option. On May 13, 2020, Medtronic Luxco borrowed the entire amount of the term loan under the Loan Agreement. The Japanese Yen-denominated debt was designated as a net investment hedge for certain of the Company's Japanese operations. Borrowings under the Loan Agreement carried interest at the TIBOR Rate (as defined in the Loan Agreement) plus a margin of 0.50% per annum. Medtronic plc and Medtronic, Inc. guaranteed the obligations of Medtronic Luxco under the Loan Agreement. On November 12, 2020, the Company exercised its option to extend the term loan for an additional six months. During the fourth quarter of fiscal year 2021, the Company de-designated the Yen-denominated debt as a net investment hedge and repaid the term loan in full, including interest. Financial Instruments Not Measured at Fair Value At July 30, 2021, the estimated fair value of the Company’s Senior Notes was $29.2 billion compared to a principal value of $26.1 billion. At April 30, 2021, the estimated fair value was $28.6 billion compared to a principal value of $26.5 billion. The fair value was estimated using quoted market prices for the publicly registered Senior Notes, which are classified as Level 2 within the fair value hierarchy. The fair values and principal values consider the terms of the related debt and exclude the impacts of debt discounts and hedging activity. |
Derivatives and Currency Exchan
Derivatives and Currency Exchange Risk Management | 3 Months Ended |
Jul. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Currency Exchange Risk Management | Derivatives and Currency Exchange Risk Management The Company uses operational and economic hedges, including currency exchange rate derivative contracts and interest rate derivative instruments, to manage the impact of currency exchange and interest rate changes on earnings and cash flows. In addition, the Company uses cross currency interest rate swaps to manage currency risk related to certain debt. In order to minimize earnings and cash flow volatility resulting from currency exchange rate changes, the Company enters into derivative instruments, principally forward currency exchange rate contracts. These contracts are designed to hedge anticipated foreign currency transactions and changes in the value of specific assets and liabilities. At inception of the contract, the derivative is designated as either a freestanding derivative or a cash flow hedge. Currencies of our derivative instruments include the Euro, Japanese Yen, Chinese Yuan, and others. The Company does not enter into currency exchange rate derivative contracts for speculative purposes. The gross notional amount of all currency exchange rate derivative instruments outstanding was $15.0 billion and $14.7 billion at July 30, 2021 and April 30, 2021, respectively. The Company also uses derivative and non-derivative instruments to manage the impact of currency exchange rate changes on net investments in foreign currency-denominated operations. The information that follows explains the various types of derivatives and financial instruments used by the Company, reasons the Company uses such instruments, and the impact such instruments have on the Company’s consolidated balance sheets and statements of income. Freestanding Derivative Contracts Freestanding derivative contracts are primarily used to offset the Company’s exposure to the change in value of specific foreign-currency-denominated assets and liabilities, and to offset variability of cash flows associated with forecasted transactions denominated in foreign currencies. The gross notional amount of the Company's freestanding currency exchange rate contracts outstanding at July 30, 2021 and April 30, 2021 was $5.2 billion and $5.7 billion, respectively. The Company's freestanding currency exchange rate contracts are not designated as hedges, and therefore, changes in the value of these contracts are recognized in earnings, thereby offsetting the current earnings effect of the related change in value of foreign-currency-denominated assets, liabilities, and cash flows. The Company also uses total return swaps to hedge the liability of a non-qualified deferred compensation plan. The gross notional amount of the Company's total return swaps outstanding at July 30, 2021 and April 30, 2021 was $235 million and $243 million, respectively. The Company's total return swaps are not designated as hedges, and therefore, changes in the value of these instruments are recognized in earnings. The cash flows related to the Company's freestanding derivative contracts are reported as operating or financing activities, depending on the nature of the underlying hedged item, in the consolidated statements of cash flows. The amounts and classification of the (gains) losses in the consolidated statements of income related to derivative instruments not designated as hedging instruments for the three months ended July 30, 2021 and July 31, 2020 were as follows: Three months ended (in millions) Classification July 30, 2021 July 31, 2020 Currency exchange rate contracts Other operating expense (income), net $ (17) $ 127 Total return swaps Other operating expense (income), net (13) (27) Total $ (30) $ 100 Cash Flow Hedges Forward contracts designated as cash flow hedges are designed to hedge the variability of cash flows associated with forecasted transactions denominated in a foreign currency that will take place in the future. The gross notional amount of these contracts, designated as cash flow hedges, outstanding at July 30, 2021 and April 30, 2021 was $9.8 billion and $9.0 billion, respectively, and will mature within the subsequent three-year period. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive loss . The gain or loss on the derivative instrument is reclassified into earnings and is included in other operating expense (income), net or cost of products sold in the consolidated statements of income in the same period or periods during which the hedged transaction affects earnings. Amounts excluded from the measurement of hedge effectiveness are recognized in earnings in the current period. The cash flows related to all of the Company's derivative instruments designated as cash flow hedges are reported as operating activities in the consolidated statements of cash flows. No components of the hedge contracts were excluded in the measurement of hedge effectiveness, and no forward contracts designated as cash flow hedges were derecognized or discontinued during the three months ended July 30, 2021 and July 31, 2020. The amount of the (gains) losses recognized in accumulated other comprehensive loss (AOCI) related to the currency exchange rate contract derivative instruments designated as cash flow hedges for the three months ended July 30, 2021 and July 31, 2020 were as follows: Three months ended (in millions) July 30, 2021 July 31, 2020 Currency exchange rate contracts $ (160) $ 389 The amount of the (gains) losses recognized in the consolidated statements of income related to derivative instruments designated as cash flow hedges for the three months ended July 30, 2021 and July 31, 2020 were as follows: Three months ended July 30, 2021 July 31, 2020 (in millions) Cost of products sold Other operating expense (income), net Cost of products sold Other operating expense (income), net Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of cash flow hedges are recorded $ 2,598 $ 760 $ 2,505 $ (114) Currency exchange rate contracts designated as cash flow hedges: Amount of (gain) loss reclassified from AOCI into income 11 19 — (53) Forecasted Debt Issuance Interest Rate Risk Forward starting interest rate derivative instruments designated as cash flow hedges are designed to manage the exposure to interest rate volatility with regard to future issuances of fixed-rate debt. The gains or losses on forward starting interest rate derivative instruments that are designated and qualify as cash flow hedges are reported as a component of accumulated other comprehensive loss . Beginning in the period in which the planned debt issuance occurs and the related derivative instruments are terminated, the gains or losses are then reclassified into interest expense over the term of the related debt. For the three months ended July 30, 2021 and July 31, 2020, the reclassifications of net (gains) losses on forward starting interest rate derivative instruments from accumulated other comprehensive loss to interest expense were not significant. At July 30, 2021 and April 30, 2021, the Company had $79 million and $253 million in after-tax net unrealized losses, respectively, associated with cash flow hedging instruments recorded in accumulated other comprehensive loss . The Company expects that $33 million of after-tax net unrealized losses at July 30, 2021 will be recognized in the consolidated statements of income over the next 12 months. Net Investment Hedges The Company has designated Euro-denominated debt as a net investment hedge of certain of its European operations to manage the exposure to currency and exchange rate movements for foreign currency-denominated net investments in foreign operations. At July 30, 2021, the Company had €16.0 billion, or $18.9 billion, of outstanding Euro-denominated debt designated as a hedge of its net investment in certain of its European operations. The Euro-denominated debt will mature in fiscal years 2023 through 2051. For instruments that are designated and qualify as net investment hedges, the gains or losses are reported as a component of accumulated other comprehensive loss . The gains or losses are reclassified into earnings upon a liquidation event or deconsolidation of the foreign subsidiary. Amounts excluded from the assessment of effectiveness are recognized in other operating expense (income), net . The cash flows related to the Company's derivative instruments designated as net investment hedges are reported as investing activities in the consolidated statements of cash flows. At July 30, 2021 and April 30, 2021, the Company had $1.0 billion and $1.5 billion in after-tax unrealized losses, respectively, associated with net investment hedges recorded in accumulated other comprehensive loss . The Company does not expect any of the after-tax unrealized gains at July 30, 2021 to be recognized in the consolidated statements of income over the next 12 months. The Company did not recognize any gains or losses during the three months ended July 30, 2021 or July 31, 2020 on instruments that no longer qualify as net investment hedges. Additionally, The Company did not recognize any gains or losses in the consolidated statements of income for portions of the net investment hedges excluded from the measurement of hedge effectiveness during the three months ended July 30, 2021 or July 31, 2020. The amount of the (gains) losses recognized in AOCI related to instruments designated as net investment hedges for the three months ended July 30, 2021 were as follows: Three months ended (in millions) July 30, 2021 July 31, 2020 Net investment hedges $ (424) $ 1,112 Balance Sheet Presentation The following tables summarize the balance sheet classification and fair value of derivative instruments included in the consolidated balance sheets at July 30, 2021 and April 30, 2021. The fair value amounts are presented on a gross basis and are segregated between derivatives that are designated and qualify as hedging instruments and those that are not designated and do not qualify as hedging instruments and are further segregated by type of contract within those two categories. July 30, 2021 Derivative Assets Derivative Liabilities (in millions) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedging instruments Currency exchange rate contracts Other current assets $ 88 Other accrued expenses $ 109 Currency exchange rate contracts Other assets 42 Other liabilities 51 Total derivatives designated as hedging instruments 130 160 Derivatives not designated as hedging instruments Currency exchange rate contracts Other current assets 16 Other accrued expenses 21 Total return swaps Other current assets 13 Other accrued expenses — Total derivatives not designated as hedging instruments 30 21 Total derivatives $ 160 $ 181 April 30, 2021 Derivative Assets Derivative Liabilities (in millions) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedging instruments Currency exchange rate contracts Other current assets $ 49 Other accrued expenses $ 190 Currency exchange rate contracts Other assets 22 Other liabilities 94 Total derivatives designated as hedging instruments 70 285 Derivatives not designated as hedging instruments Currency exchange rate contracts Other current assets 14 Other accrued expenses 11 Total return swaps Other current assets 18 Other accrued expenses — Total derivatives not designated as hedging instruments 32 11 Total derivatives $ 102 $ 296 The following table provides information by level for the derivative assets and liabilities that are measured at fair value on a recurring basis. July 30, 2021 April 30, 2021 (in millions) Level 1 Level 2 Level 1 Level 2 Derivative assets $ 147 $ 13 $ 85 $ 18 Derivative liabilities 181 — 296 — The Company has elected to present the fair value of derivative assets and liabilities within the consolidated balance sheets on a gross basis, even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. The cash flows related to collateral posted and received are reported gross as investing and financing activities, respectively, in the consolidated statements of cash flows. The following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation. July 30, 2021 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 147 $ (111) $ — $ 36 Total return swaps 13 — — 13 160 (111) — 49 Derivative liabilities: Currency exchange rate contracts (181) 111 25 (46) Total $ (21) $ — $ 25 $ 4 April 30, 2021 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 85 $ (83) $ — $ 1 Total return swaps 18 — — 18 102 (83) — 19 Derivative liabilities: Currency exchange rate contracts (296) 83 46 (167) Total $ (194) $ — $ 46 $ (148) |
Inventories
Inventories | 3 Months Ended |
Jul. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory balances, net of reserves, were as follows: (in millions) July 30, 2021 April 30, 2021 Finished goods $ 2,884 $ 2,906 Work in-process 602 611 Raw materials 802 796 Total $ 4,288 $ 4,313 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Jul. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The following table presents the changes in the carrying amount of goodwill by segment: (in millions) Cardiovascular Medical Surgical Neuroscience Diabetes Total April 30, 2021 $ 7,209 $ 21,195 $ 11,300 $ 2,257 $ 41,961 Purchase accounting adjustments 26 — 3 (2) 27 Currency translation and other (17) (203) (48) — (268) July 30, 2021 $ 7,218 $ 20,992 $ 11,255 $ 2,255 $ 41,720 The Company assesses goodwill for impairment annually as of the first day of the third quarter of the fiscal year and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Impairment testing for goodwill is performed at the reporting unit level. The test for impairment of goodwill requires the Company to make several estimates about fair value, most of which are based on projected future cash flows. The Company calculates the excess of each reporting unit's fair value over its carrying amount, including goodwill, utilizing a discounted cash flow analysis. Internal operational budgets and long-range strategic plans are used as a basis for the cash flow analysis. The Company also utilizes assumptions for working capital, capital expenditures, and terminal growth rates. The discount rate applied to the cash flow analysis is based on the weighted average cost of capital ("WACC") for each reporting unit. An impairment loss is recognized when the carrying amount of the reporting unit's net assets exceeds the estimated fair value of the reporting unit. The Company did not recognize any goodwill impairment during the three months ended July 30, 2021 or July 31, 2020. Intangible Assets The following table presents the gross carrying amount and accumulated amortization of intangible assets: July 30, 2021 April 30, 2021 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 17,010 $ (6,296) $ 17,036 $ (6,058) Purchased technology and patents 10,687 (5,143) 11,286 (5,156) Trademarks and tradenames 475 (255) 475 (251) Other 78 (60) 82 (68) Total $ 28,250 $ (11,754) $ 28,879 $ (11,533) Indefinite-lived: IPR&D $ 394 $ — $ 394 $ — The Company assesses definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of an intangible asset (asset group) may not be recoverable. When events or changes in circumstances indicate that the carrying value of an intangible asset may not be recoverable, the Company calculates the excess of an intangible asset's carrying value over its undiscounted future cash flows. If the carrying value is not recoverable, an impairment loss is recognized based on the amount by which the carrying value exceeds the fair value. During the three months ended July 30, 2021, the Company recognized $409 million of definite-lived intangible asset charges in connection with MCS within the Cardiovascular Portfolio. Refer to Note 5 Restructuring and Other Costs for additional information on what led to the impairment. Intangible asset impairment charges are recognized in Other operating expense (income), net in the consolidated statements of income. The Company did not recognize any definite-lived intangible asset charges during the three months ended July 31, 2020. The Company assesses indefinite-lived intangibles for impairment annually in the third quarter of the fiscal year and whenever an event occurs or circumstances change that would indicate that the carrying value may be impaired. The Company did not recognize any indefinite-lived intangible asset impairments during the three months ended July 30, 2021 or July 31, 2020. Due to the nature of IPR&D projects, the Company may experience future delays or failures to obtain regulatory approvals to conduct clinical trials, failures of clinical trials, delays or failures to obtain required market clearances, other failures to achieve a commercially viable product, or the discontinuation of certain projects, and as a result, may recognize impairment losses in the future. Amortization Expense Intangible asset amortization expense for the three months ended July 30, 2021 and July 31, 2020 was $436 million and $440 million, respectively. Estimated aggregate amortization expense by fiscal year based on the carrying value of definite-lived intangible assets at July 30, 2021, excluding any possible future amortization associated with acquired IPR&D which has not yet met technological feasibility, is as follows: (in millions) Amortization Expense Remaining 2022 $ 1,286 2023 1,654 2024 1,619 2025 1,597 2026 1,583 2027 1,558 |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate for the three months ended July 30, 2021 was 7.7 percent, as compared to 15.9 percent for the three months ended July 31, 2020. The decrease in our effective tax rate for the three months ended July 30, 2021, as compared to the corresponding period in the prior fiscal year, was primarily due to the tax impact of the MCS charges and year-over-year changes in operational results by jurisdiction partially offset by a $39 million charge related to a change in the Company's permanent reinvestment assertion on certain historical earnings. At both July 30, 2021 and April 30, 2021, the Company's gross unrecognized tax benefits were $1.7 billion. In addition, the Company had accrued gross interest and penalties of $104 million at July 30, 2021. If all the Company’s unrecognized tax benefits were recognized, approximately $1.6 billion would impact the Company’s effective tax rate. At July 30, 2021 and April 30, 2021, the amount of the Company's gross unrecognized tax benefits, net of cash advance, recorded as a noncurrent liability within accrued income taxes on the consolidated balance sheets was $810 million and $809 million, respectively. The Company recognizes interest and penalties related to income tax matters within income tax provision in the consolidated statements of income and records the liability within either current or noncurrent accrued income taxes on the consolidated balance sheets. Refer to Note 16 to the consolidated financial statements for additional information regarding the status of current tax audits and proceedings. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jul. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per share is calculated using the two-class method, as the Company's A Preferred Shares are considered participating securities. Accordingly, earnings are allocated to both ordinary shares and participating securities in determining earnings per ordinary share. Due to the limited number of A Preferred Shares outstanding, this allocation had no effect on the ordinary earnings per share; therefore, it is not presented below. Basic earnings per share is computed based on the weighted average number of ordinary shares outstanding. Diluted earnings per share is computed based on the weighted number of ordinary shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive ordinary shares been issued, and reduced by the number of shares the Company could have repurchased with the proceeds from issuance of the potentially dilutive shares. Potentially dilutive ordinary shares include stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. The table below sets forth the computation of basic and diluted earnings per share: Three months ended (in millions, except per share data) July 30, 2021 July 31, 2020 Numerator: Net income attributable to ordinary shareholders $ 763 $ 487 Denominator: Basic – weighted average shares outstanding 1,344.5 1,341.9 Effect of dilutive securities: Employee stock options 8.5 4.7 Employee restricted stock units 2.3 2.7 Other 1.0 0.7 Diluted – weighted average shares outstanding 1,356.4 1,350.0 Basic earnings per share $ 0.57 $ 0.36 Diluted earnings per share $ 0.56 $ 0.36 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jul. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following table presents the components and classification of stock-based compensation expense for stock options, restricted stock, performance share units, and employee stock purchase plan shares recognized for the three months ended July 30, 2021 and July 31, 2020: Three months ended (in millions) July 30, 2021 July 31, 2020 Stock options $ 10 $ 8 Restricted stock 41 50 Performance share units 6 — Employee stock purchase plan 11 12 Total stock-based compensation expense $ 69 $ 70 Cost of products sold $ 7 $ 7 Research and development expense 8 8 Selling, general, and administrative expense 55 55 Total stock-based compensation expense 69 70 Income tax benefits (11) (11) Total stock-based compensation expense, net of tax $ 58 $ 59 |
Retirement Benefit Plans
Retirement Benefit Plans | 3 Months Ended |
Jul. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans The Company sponsors various retirement benefit plans, including defined benefit pension plans, post-retirement medical plans, defined contribution savings plans, and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. The net periodic benefit cost of the defined benefit pension plans included the following components for the three months ended July 30, 2021 and July 31, 2020: U.S. Non-U.S. Three months ended Three months ended (in millions) July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 Service cost $ 25 $ 27 $ 16 $ 17 Interest cost 26 27 7 6 Expected return on plan assets (57) (61) (16) (14) Amortization of net actuarial loss 16 18 5 6 Net periodic benefit cost $ 10 $ 11 $ 12 $ 15 Components of net periodic benefit cost other than the service component are recognized in other non-operating income, net in the consolidated statements of income. During fiscal year 2021, as part of the Simplification restructuring program, the Company offered certain eligible U.S. employees voluntary early retirement packages, resulting in incremental expense of $97 million recognized. Of this amount, $73 million related to U.S. pension benefits, $11 million related to defined contribution plans, $11 million related to U.S. post-retirement benefits, and $2 million related to cash payments and administrative fees. See Note 5 for additional information on the Simplification restructuring program. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jul. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table provides changes in AOCI, net of tax, and by component: (in millions) Unrealized Gain (Loss) on Investment Securities Cumulative Translation Adjustments Net Investment Hedges Net Change in Retirement Obligations Unrealized Gain (Loss) on Cash Flow Hedges Total Accumulated Other Comprehensive (Loss) Income April 30, 2021 $ 92 $ (519) $ (1,458) $ (1,347) $ (253) $ (3,485) Other comprehensive income (loss) before reclassifications 14 (353) 424 1 144 230 Reclassifications (2) — — 18 30 46 Other comprehensive income (loss) 12 (353) 424 19 174 276 July 30, 2021 $ 104 $ (872) $ (1,034) $ (1,328) $ (79) $ (3,209) (in millions) Unrealized Gain (Loss) on Investment Securities Cumulative Translation Adjustment Net Investment Hedges Net Change in Retirement Obligations Unrealized Gain (Loss) on Cash Flow Hedges Total Accumulated Other Comprehensive (Loss) Income April 24, 2020 $ — $ (2,210) $ 236 $ (1,852) $ 266 $ (3,560) Other comprehensive income (loss) before reclassifications 125 1,112 (1,112) (12) (309) (196) Reclassifications — — — 15 (41) (26) Other comprehensive income (loss) 125 1,112 (1,112) 3 (350) (222) July 31, 2020 $ 125 $ (1,098) $ (876) $ (1,849) $ (84) $ (3,782) The income tax on gains and losses on investment securities in other comprehensive income before reclassifications during the three months ended July 30, 2021 and July 31, 2020 was an expense of $2 million and $30 million, respectively. There was no income tax on gains and losses on investment securities reclassified from AOCI for the three months ended July 30, 2021 and July 31, 2020. When realized, gains and losses on investment securities reclassified from AOCI are recognized within other non-operating income, net . Refer to Note 6 to the consolidated financial statements for additional information. During the three months ended July 30, 2021 there was no income tax on cumulative translation adjustment. For the three months ended July 31, 2020 the income tax on cumulative translation adjustment was an expense of $4 million. During the three months ended July 30, 2021 and July 31, 2020, there were no tax impacts on net investment hedges. Refer to Note 8 to the consolidated financial statements for additional information. The net change in retirement obligations in other comprehensive income includes amortization of net actuarial losses included in net periodic benefit cost. During the three months ended July 30, 2021 and July 31, 2020, the net change in retirement obligations in other comprehensive income before reclassifications resulted in income tax expense of $1 million and income tax benefit of $5 million, respectively. During the three months ended July 30, 2021 and July 31, 2020, the gains and losses on defined benefit and pension items reclassified from AOCI were reduced by income taxes of $2 million and $4 million, respectively. When realized, net gains and losses on defined benefit and pension items reclassified from AOCI are recognized within other non-operating income, net . Refer to Note 14 to the consolidated financial statements for additional information. The income tax on unrealized gains and losses on cash flow hedges in other comprehensive income before reclassifications during the three months ended July 30, 2021 and July 31, 2020 was an expense of $16 million and a benefit of $80 million, respectively. During the three months ended July 30, 2021 and July 31, 2020, gains and losses on cash flow hedges reclassified from AOCI were reduced by income taxes of $1 million and $11 million, respectively. When realized, gains and losses on currency exchange rate contracts reclassified from AOCI are recognized within other operating expense (income), net, and gains and losses on forward starting interest rate derivatives reclassified from AOCI are recognized within interest expense. Refer to Note 8 to the consolidated financial statements for additional information. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company and its affiliates are involved in a number of legal actions involving product liability, intellectual property and commercial disputes, shareholder related matters, environmental proceedings, tax disputes, and governmental proceedings and investigations, including those described below. With respect to governmental proceedings and investigations, like other companies in our industry, the Company is subject to extensive regulation by national, state, and local governmental agencies in the United States and in other jurisdictions in which the Company and its affiliates operate. As a result, interaction with governmental agencies is ongoing. The Company’s standard practice is to cooperate with regulators and investigators in responding to inquiries. The outcomes of legal actions are not within the Company’s complete control and may not be known for prolonged periods of time. In some actions, the enforcement agencies or private claimants seek damages, as well as other civil or criminal remedies (including injunctions barring the sale of products that are the subject of the proceeding), that could require significant expenditures, result in lost revenues, or limit the Company's ability to conduct business in the applicable jurisdictions. The Company records a liability in the consolidated financial statements on an undiscounted basis for loss contingencies related to legal actions when a loss is known or considered probable and the amount may be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and may be reasonably estimated, the estimated loss or range of loss is disclosed. When determining the estimated loss or range of loss, significant judgment is required. Estimates of probable losses resulting from litigation and governmental proceedings involving the Company are inherently difficult to predict, particularly when the matters are in early procedural stages with incomplete scientific facts or legal discovery, involve unsubstantiated or indeterminate claims for damages, potentially involve penalties, fines or punitive damages, or could result in a change in business practice. The Company classifies litigation charges and gains related to significant legal matters as certain litigation charges. During the three months ended July 30, 2021, the Company recognized $26 million of certain litigation charges. During the three months ended July 31, 2020, the Company recognized a net benefit of $88 million primarily related to favorable settlements for certain legal matters. At July 30, 2021 and April 30, 2021, accrued litigation was approximately $0.3 billion and $0.4 billion, respectively. The ultimate cost to the Company with respect to accrued litigation could be materially different than the amount of the current estimates and accruals and could have a material adverse impact on the Company’s consolidated earnings, financial position, and/or cash flows. The Company includes accrued litigation in other accrued expenses and other liabilities on the consolidated balance sheets. While it is not possible to predict the outcome for most of the legal matters discussed below, the Company believes it is possible that the costs associated with these matters could have a material adverse impact on the Company’s consolidated earnings, financial position, and/or cash flows. Product Liability Matters Pelvic Mesh Litigation The Company is currently involved in litigation in various state and federal courts against manufacturers of pelvic mesh products alleging personal injuries resulting from the implantation of those products. Two subsidiaries of Covidien supplied pelvic mesh products to one of the manufacturers, C.R. Bard (Bard), named in the litigation. The litigation includes a federal multi-district litigation in the U.S. District Court for the Northern District of West Virginia and cases in various state courts and jurisdictions outside the U.S. Generally, complaints allege design and manufacturing claims, failure to warn, breach of warranty, fraud, violations of state consumer protection laws and loss of consortium claims. In fiscal year 2016, Bard paid the Company $121 million towards the settlement of 11,000 of these claims. In May 2017, the agreement with Bard was amended to extend the terms to apply to up to an additional 5,000 claims. That agreement does not resolve the dispute between the Company and Bard with respect to claims that do not settle, if any. As part of the agreement, the Company and Bard agreed to dismiss without prejudice their pending litigation with respect to Bard’s obligation to defend and indemnify the Company. The Company estimates law firms representing approximately 16,200 claimants have asserted or may assert claims involving products manufactured by Covidien’s subsidiaries. As of August 4, 2021, the Company had reached agreements to settle approximately 15,900 of these claims. The Company's accrued expenses for this matter are included within accrued litigation as discussed above. Hernia Mesh Litigation Starting in fiscal year 2020, plaintiffs filed lawsuits against certain subsidiaries of the Company in U.S. state and federal courts alleging personal injury from hernia mesh products sold by those subsidiaries. The majority of the pending cases are in Massachusetts state court, where they have been consolidated before a single judge. Certain plaintiffs' law firms have advised the Company that they may file a large volume of additional cases in the future. The pending lawsuits relate almost entirely to hernia mesh products that have not been subject to recalls, withdrawals, or other adverse regulatory action. The Company has not recorded an expense related to damages in connection with these matters because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company is unable to reasonably estimate the range of loss, if any, that may result from these matters. Patent Litigation Sasso The Company is involved in litigation in Indiana relating to certain patent and royalty disputes with Dr. Sasso under agreements originally entered into in 1999 and 2001. On November 28, 2018, a jury in Indiana state court returned a verdict against the Company for approximately $112 million. On June 15, 2021, pursuant to an order from the state court, the Company paid the judgment plus accrued interest to Dr. Sasso, subject to repayment if the Company's ongoing appeal is successful. Environmental Proceedings The Company is involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. These projects relate to a variety of activities, including removal of solvents, metals and other hazardous substances from soil and groundwater. The ultimate cost of site cleanup and timing of future cash flows is difficult to predict given uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods. The Company is a successor to a company which owned and operated a chemical manufacturing facility in Orrington, Maine from 1967 until 1982, and is responsible for the costs of completing an environmental site investigation as required by the Maine Department of Environmental Protection (MDEP). MDEP served a compliance order on Mallinckrodt LLC and U.S. Surgical Corporation, subsidiaries of Covidien, in December 2008, which included a directive to remove a significant volume of soils at the site. After a hearing on the compliance order before the Maine Board of Environmental Protection (Maine Board) to challenge the terms of the compliance order, the Maine Board modified the MDEP order and issued a final order requiring removal of two landfills, capping of the remaining three landfills, installation of a groundwater extraction system and long-term monitoring of the site and the three remaining landfills. The Company has proceeded with implementation of the investigation and remediation at the site in accordance with the MDEP order as modified by the Maine Board order. Since the early 2000s, the Company or its predecessors have also been involved in a lawsuit filed in the U.S. District Court for the District of Maine by the Natural Resources Defense Council and the Maine People’s Alliance. Plaintiffs sought an injunction requiring the Company's predecessor to conduct extensive studies of mercury contamination of the Penobscot River and Bay and options for remediating such contamination, and to perform appropriate remedial activities, if necessary. Following a trial in March 2002, the Court held that conditions in the Penobscot River and Bay may pose an imminent and substantial endangerment and that the Company’s predecessor was liable for the cost of performing a study of the River and Bay. Following a second trial in June 2014, the Court ordered that further engineering study and engineering design work was needed to determine the nature and extent of remediation in the Penobscot River and Bay. The Court also appointed an engineering firm to conduct such studies and issue a report on potential remediation alternatives. In connection with these proceedings, reports have been produced including a variety of cost estimates for a variety of potential remedial options. In March 2021, the parties notified the Court that they had agreed on a settlement in principle of all issues in this matter. Finalization of the proposed settlement remains subject to a fairness hearing and Court approval. The Company's accrued expenses for environmental proceedings are included within accrued litigation as discussed above. Income Taxes In March 2009, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2005 and 2006. Medtronic, Inc. reached agreement with the IRS on some, but not all matters related to these fiscal years. The remaining unresolved issue for fiscal years 2005 and 2006 relates to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico, which is one of the Company's key manufacturing sites. The U.S. Tax Court reviewed this dispute, and on June 9, 2016, issued its opinion with respect to the allocation of income between the parties for fiscal years 2005 and 2006. The U.S. Tax Court generally rejected the IRS’s position, but also made certain modifications to the Medtronic, Inc. tax returns as filed. On April 21, 2017, the IRS filed their Notice of Appeal to the U.S. Court of Appeals for the 8th Circuit regarding the Tax Court Opinion. Oral argument for the Appeal occurred on March 14, 2018. The 8th Circuit Court of Appeals issued their opinion on August 16, 2018 and remanded the case back to the U.S. Tax Court for additional factual findings. The U.S. Tax Court trial relating to the issues remanded by the 8th Circuit Court of Appeals concluded during June 2021. The parties are awaiting the Tax Court decision, which will remain subject to appeal by either party upon its issuance. The IRS has issued its audit reports on Medtronic, Inc. for fiscal years 2007 through 2016. Medtronic, Inc. and the IRS have reached agreement on all significant issues except for the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico for the businesses that are the subject of the U.S. Tax Court Case for fiscal years 2005 and 2006. Medtronic, Inc.’s fiscal years 2017, 2018, and 2019 U.S. federal income tax returns are currently being audited by the IRS. Covidien LP (a wholly owned subsidiary of Medtronic plc) has either reached agreement with the IRS or the statute of limitations has lapsed on their U.S. federal income tax returns through fiscal year 2017. While it is not possible to predict the outcome for most of the income tax matters discussed above, the Company believes it is possible that charges associated with these matters could have a material adverse impact on the Company’s consolidated earnings, financial position, and/or cash flows. Refer to Note 11 for additional discussion of income taxes. Guarantees In the normal course of business, the Company and/or its affiliates periodically enter into agreements that require one or more of the Company and/or its affiliates to indemnify customers or suppliers for specific risks, such as claims for injury or property damage arising as a result of the Company or its affiliates’ products, the negligence of the Company's personnel, or claims alleging that the Company's products infringe on third-party patents or other intellectual property. The Company also offers warranties on various products. The Company’s maximum exposure under these guarantees is unable to be estimated. Historically, the Company has not experienced significant losses on these types of guarantees. The Company believes the ultimate resolution of the above guarantees is not expected to have a material effect on the Company’s consolidated earnings, financial position, and/or cash flows. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Jul. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Segment disclosures are on a performance basis consistent with internal management reporting. Net sales of the Company's reportable segments include end-customer revenues from the sale of products the segment develops, manufactures, and distributes. There are certain corporate and centralized expenses that are not allocated to the segments. The Company’s management evaluates performance of the segments and allocates resources based on net sales and segment operating profit. Segment operating profit represents income before income taxes, excluding interest expense, amortization of intangible assets, centralized distribution costs, non-operating income or expense items, certain corporate charges, and other items not allocated to the segments. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in Note 1 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2021. Certain depreciable assets may be recorded by one segment, while the depreciation expense is allocated to another segment. The allocation of depreciation expense is based on the proportion of the assets used by each segment. Effective February 1, 2021, the Company implemented a new operating model, moving from a Group structure to a Portfolio structure: Cardiovascular Portfolio (formerly Cardiac and Vascular Group), Neuroscience Portfolio (formerly Restorative Therapies Group), and Medical Surgical Portfolio (formerly Minimally Invasive Therapies Group). The Diabetes Operating Unit (formerly Diabetes Group) remains a separate operating and reportable segment in the new structure. There were no changes to the reportable segments during the fiscal year ended April 30, 2021, such that the four principal operating and reportable segments are as follows: Cardiovascular Portfolio, Neuroscience Portfolio, Medical Surgical Portfolio, and Diabetes Operating Unit. The following tables present reconciliations of financial information from the segments to the applicable line items in the Company's consolidated financial statements: Segment Operating Profit Three months ended (in millions) July 30, 2021 July 31, 2020 Cardiovascular $ 1,161 $ 759 Medical Surgical 914 455 Neuroscience 962 523 Diabetes 133 103 Segment operating profit 3,170 1,840 Interest expense (137) (171) Other non-operating income, net 111 82 Amortization of intangible assets (436) (440) Corporate (449) (365) Centralized distribution costs (464) (399) Restructuring and associated costs (81) (128) Acquisition-related items (109) 95 Certain litigation charges, net (26) 88 MCS impairments / costs (726) — Medical device regulations (21) (18) Income before income taxes $ 833 $ 584 Geographic Information Net sales are attributed to the country based on the location of the customer taking possession of the products or in which the services are rendered. The following table presents net sales for the three months ended July 30, 2021 and July 31, 2020 for the Company's country of domicile, countries with significant concentrations, and all other countries: Three months ended (in millions) July 30, 2021 July 31, 2020 Ireland $ 26 $ 24 United States 4,101 3,351 Rest of world 3,860 3,132 Total other countries, excluding Ireland 7,961 6,483 Total $ 7,987 $ 6,507 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jul. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements of Medtronic plc and its subsidiaries (Medtronic plc, Medtronic, or the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S.) (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the consolidated financial statements include all the adjustments necessary for a fair statement in conformity with U.S. GAAP. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year.Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. |
Consolidation | The accompanying unaudited consolidated financial statements include the accounts of Medtronic plc, its wholly-owned subsidiaries, entities for which the Company has a controlling financial interest, and variable interest entities for which the Company is the primary beneficiary. Intercompany transactions and balances have been eliminated in consolidation. Amounts reported in millions within this quarterly report are computed based on the amounts in thousands, and therefore, the sum of the components may not equal the total amount reported in millions due to rounding. Additionally, certain columns and rows within tables may not sum due to rounding. |
Fiscal Period | The Company’s fiscal years 2022, 2021, and 2020 will end or ended on April 29, 2022, April 30, 2021, and April 24, 2020, respectively. Fiscal year 2021 was a 53-week year, with the extra week having occurred in the first fiscal month of the first quarter. |
New Accounting Pronouncements | Recently AdoptedFor the three months ended July 30, 2021, there were no newly adopted accounting pronouncements that had a material impact to our consolidated financial statements. As of July 30, 2021, there are no recently issued but not yet adopted accounting pronouncements that are expected to materially impact our consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jul. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The table below illustrates net sales by segment and division for the three months ended July 30, 2021 and July 31, 2020: Three months ended (in millions) July 30, 2021 July 31, 2020 Cardiac Rhythm & Heart Failure $ 1,483 $ 1,247 Structural Heart & Aortic 787 627 Coronary & Peripheral Vascular 620 558 Cardiovascular 2,890 2,433 Surgical Innovations 1,554 1,080 Respiratory, Gastrointestinal, & Renal 768 720 Medical Surgical 2,322 1,801 Cranial & Spinal Technologies 1,123 944 Specialty Therapies 641 453 Neuromodulation 440 314 Neuroscience 2,204 1,712 Diabetes 572 562 Total $ 7,987 $ 6,507 The table below illustrates net sales by market geography for each segment for the three months ended July 30, 2021 and July 31, 2020: U.S. (1) Non-U.S. Developed Markets (2) Emerging Markets (3) Three months ended Three months ended Three months ended (in millions) July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 Cardiovascular $ 1,420 $ 1,206 $ 1,003 $ 853 $ 467 $ 374 Medical Surgical 990 722 869 719 463 359 Neuroscience 1,446 1,136 465 376 293 199 Diabetes 245 287 263 226 63 48 Total $ 4,101 $ 3,351 $ 2,601 $ 2,175 $ 1,286 $ 981 (1) U.S. includes the United States and U.S. territories. (2) Non-U.S. developed markets include Japan, Australia, New Zealand, Korea, Canada, and the countries within Western Europe. (3) Emerging markets include the countries of the Middle East, Africa, Latin America, Eastern Europe, and the countries of Asia that are not included in the non-U.S. developed markets, as defined above. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Jul. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Reconciliation of Beginning and Ending Balances of Contingent Consideration | The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Three months ended (in millions) July 30, 2021 July 31, 2020 Beginning balance $ 270 280 Purchase price allocation adjustments 25 — Payments (11) (1) Change in fair value 10 18 Ending balance $ 294 $ 297 |
Fair Value Measurements, Contingent Consideration, Significant Unobservable Inputs | The recurring Level 3 fair value measurements of contingent consideration for which a liability is recorded include the following significant unobservable inputs: Fair Value at (in millions) July 30, 2021 Unobservable Input Range Weighted Average (1) Discount rate 11.2% - 31.6% 17.2% Revenue and other performance-based payments $259 Probability of payment 30% - 100% 91.4% Projected fiscal year of payment 2022 - 2027 2024 Discount rate 5.5% 5.5% Product development and other milestone-based payments $35 Probability of payment 100% 100.0% Projected fiscal year of payment 2022 - 2027 2024 (1) Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. For projected fiscal year of payment, the amount represents the median of the inputs and is not a weighted average. |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 3 Months Ended |
Jul. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the activity related to the Enterprise Excellence restructuring program for the three months ended July 30, 2021: (in millions) Employee Termination Benefits Associated Costs (1) Other Costs Total April 30, 2021 $ 64 $ 18 $ 1 $ 83 Charges 12 63 — 75 Cash payments (14) (68) — (82) Accrual adjustments (2) (1) — — (1) July 30, 2021 $ 61 $ 13 $ 1 $ 75 (1) Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses. (2) Accrual adjustments relate to certain employees identified for termination finding other positions within the Company and contract terminations being settled for less than originally estimated. The following table summarizes the activity related to the Simplification restructuring program for three months ended July 30, 2021: (in millions) Employee Termination Benefits Associated Costs (1) Total April 30, 2021 $ 59 $ 4 $ 63 Charges 3 7 10 Cash payments (32) (9) (41) Accrual adjustments (2) (3) — (3) July 30, 2021 $ 27 $ 2 $ 29 (1) Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses. (2) Accrual adjustments relate to certain employees identified for termination finding other positions within the Company. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Jul. 30, 2021 | |
Investments [Abstract] | |
Investments by Category and Related Balance Sheet Presentation | The following tables summarize the Company's investments in available-for-sale debt securities by significant investment category and the related consolidated balance sheet classification at July 30, 2021 and April 30, 2021: July 30, 2021 Valuation Balance Sheet Classification (in millions) Cost Unrealized Unrealized Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 522 $ 29 $ (2) $ 549 $ 549 $ — Level 2: Corporate debt securities 4,807 104 (10) 4,901 4,901 — U.S. government and agency securities 880 1 (3) 878 878 — Mortgage-backed securities 649 24 (16) 656 656 — Non-U.S. government and agency securities 30 1 — 31 31 — Certificates of deposit 15 — — 15 15 Other asset-backed securities 552 3 — 555 555 — Debt funds 6 — — 6 6 — Total Level 2 6,939 133 (30) 7,042 7,042 — Level 3: Auction rate securities 36 — (3) 33 — 33 Total available-for-sale debt securities $ 7,497 $ 162 $ (35) $ 7,624 $ 7,591 $ 33 April 30, 2021 Valuation Balance Sheet Classification (in millions) Cost Unrealized Unrealized Fair Value Investments Other Assets Level 1: U.S. government and agency securities $ 505 $ 26 $ (3) $ 528 $ 528 $ — Level 2: Corporate debt securities 4,557 103 (13) 4,647 4,647 — U.S. government and agency securities 810 — (7) 804 804 — Mortgage-backed securities 645 21 (16) 650 650 — Non-U.S. government and agency securities 31 1 — 33 33 — Certificates of deposit 19 — — 19 19 Other asset-backed securities 534 4 (1) 537 537 — Debt funds 7 — — 7 7 — Total Level 2 6,603 129 (36) 6,696 6,696 — Level 3: Auction rate securities 36 — (3) 33 — 33 Total available-for-sale debt securities $ 7,144 $ 155 $ (42) $ 7,257 $ 7,224 $ 33 |
Gross Unrealized Losses and Fair Values of Available-for-sale Securities that Have Been in a Continuous Unrealized Loss Position Deemed to be Temporary, Aggregated by Investment Category | The following tables present the gross unrealized losses and fair values of the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category at July 30, 2021 and April 30, 2021: July 30, 2021 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized U.S. government and agency securities $ 976 $ (6) $ — $ — Corporate debt securities — — 3,265 (10) Mortgage-backed securities — — 656 (16) Auction rate securities — — 33 (3) Total $ 976 $ (6) $ 3,954 $ (29) April 30, 2021 Less than 12 months More than 12 months (in millions) Fair Value Unrealized Fair Value Unrealized U.S. government and agency securities $ 946 $ (10) $ — $ — Corporate debt securities — — 3,209 (13) Mortgage-backed securities — — 650 (16) Other asset-backed securities — — 531 (1) Auction rate securities — — 33 (3) Total $ 946 $ (10) $ 4,423 $ (32) |
Activity Related to the Company's Available-for-Sale Securities Portfolio | Activity related to the Company’s available-for-sale debt securities portfolio is as follows: Three months ended (in millions) July 30, 2021 July 31, 2020 Proceeds from sales $ 2,272 $ 2,403 Gross realized gains 4 5 Gross realized losses (2) (6) |
Available-For-Sale Debt Securities, Contractual Maturities | The July 30, 2021 balance of available-for-sale debt securities by contractual maturity is shown in the following table. Within the table, maturities of mortgage-backed securities have been allocated based upon timing of estimated cash flows assuming no change in the current interest rate environment. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. (in millions) July 30, 2021 Due in one year or less $ 2,170 Due after one year through five years 2,978 Due after five years through ten years 1,817 Due after ten years 660 Total $ 7,624 |
Summary of Equity and Other Investments | The following table summarizes the Company's equity and other investments at July 30, 2021 and April 30, 2021, which are classified as other assets in the consolidated balance sheets: (in millions) July 30, 2021 April 30, 2021 Investments with readily determinable fair value (marketable equity securities) $ 74 $ 74 Investments without readily determinable fair values 540 537 Equity method and other investments 78 76 Total equity and other investments $ 692 $ 687 |
Activity Related to the Company's Equity and Other Investments Portfolio | The table below includes activity related to the Company’s portfolio of equity and other investments. Gains and losses on equity and other investments are recognized in other non-operating income, net in the consolidated statements of income. Three months ended (in millions) July 30, 2021 July 31, 2020 Proceeds from sales $ 52 $ — Gross gains 58 12 Gross losses (5) — Impairment losses recognized (10) (2) |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Jul. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | The Company's debt obligations consisted of the following: (in millions) Maturity by July 30, 2021 April 30, 2021 Current debt obligations 2022 - 2023 $ 6 $ 11 Long-term debt 0.000 percent three 2023 887 907 0.375 percent four 2023 1,773 1,813 0.000 percent two 2023 1,478 1,511 3.500 percent ten 2025 1,890 1,890 0.250 percent six 2026 1,182 1,209 0.000 percent five 2026 1,182 1,209 3.350 percent ten 2027 368 368 1.125 percent eight 2027 1,773 1,813 0.375 percent eight 2029 1,182 1,209 1.625 percent twelve 2031 1,182 1,209 1.000 percent twelve 2032 1,182 1,209 0.750 percent twelve 2033 1,182 1,209 4.375 percent twenty 2035 1,932 1,932 6.550 percent thirty 2038 253 253 6.500 percent thirty 2039 158 158 2.250 percent twenty 2039 1,182 1,209 5.550 percent thirty 2040 224 224 1.500 percent twenty 2040 1,182 1,209 1.375 percent twenty 2041 1,182 1,209 4.500 percent thirty 2042 105 105 4.000 percent thirty 2043 305 305 4.625 percent thirty 2044 127 127 4.625 percent thirty 2045 1,813 1,813 1.750 percent thirty 2050 1,182 1,209 1.625 percent thirty 2051 1,182 1,209 Finance lease obligations 2022 - 2036 60 62 Deferred financing costs 2022 - 2051 (120) (125) Debt discount, net 2022 - 2051 (71) (75) Long-term debt $ 25,958 $ 26,378 |
Derivatives and Currency Exch_2
Derivatives and Currency Exchange Risk Management (Tables) | 3 Months Ended |
Jul. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Amount and Location of (Gains) Losses in Statements of Income, Derivative Instruments Not Designated as Hedging Instruments | The amounts and classification of the (gains) losses in the consolidated statements of income related to derivative instruments not designated as hedging instruments for the three months ended July 30, 2021 and July 31, 2020 were as follows: Three months ended (in millions) Classification July 30, 2021 July 31, 2020 Currency exchange rate contracts Other operating expense (income), net $ (17) $ 127 Total return swaps Other operating expense (income), net (13) (27) Total $ (30) $ 100 |
Amounts of (Gains) Losses Recognized in AOCI | The amount of the (gains) losses recognized in accumulated other comprehensive loss (AOCI) related to the currency exchange rate contract derivative instruments designated as cash flow hedges for the three months ended July 30, 2021 and July 31, 2020 were as follows: Three months ended (in millions) July 30, 2021 July 31, 2020 Currency exchange rate contracts $ (160) $ 389 |
Amount and Location of (Gains) Losses in Statements of Income | The amount of the (gains) losses recognized in the consolidated statements of income related to derivative instruments designated as cash flow hedges for the three months ended July 30, 2021 and July 31, 2020 were as follows: Three months ended July 30, 2021 July 31, 2020 (in millions) Cost of products sold Other operating expense (income), net Cost of products sold Other operating expense (income), net Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of cash flow hedges are recorded $ 2,598 $ 760 $ 2,505 $ (114) Currency exchange rate contracts designated as cash flow hedges: Amount of (gain) loss reclassified from AOCI into income 11 19 — (53) |
Amounts of (Gains) Losses Recognized in AOCI for Net Investment Hedges | The amount of the (gains) losses recognized in AOCI related to instruments designated as net investment hedges for the three months ended July 30, 2021 were as follows: Three months ended (in millions) July 30, 2021 July 31, 2020 Net investment hedges $ (424) $ 1,112 |
Classification and Fair Value Amounts of Derivative Instruments in Balance Sheets | The following tables summarize the balance sheet classification and fair value of derivative instruments included in the consolidated balance sheets at July 30, 2021 and April 30, 2021. The fair value amounts are presented on a gross basis and are segregated between derivatives that are designated and qualify as hedging instruments and those that are not designated and do not qualify as hedging instruments and are further segregated by type of contract within those two categories. July 30, 2021 Derivative Assets Derivative Liabilities (in millions) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedging instruments Currency exchange rate contracts Other current assets $ 88 Other accrued expenses $ 109 Currency exchange rate contracts Other assets 42 Other liabilities 51 Total derivatives designated as hedging instruments 130 160 Derivatives not designated as hedging instruments Currency exchange rate contracts Other current assets 16 Other accrued expenses 21 Total return swaps Other current assets 13 Other accrued expenses — Total derivatives not designated as hedging instruments 30 21 Total derivatives $ 160 $ 181 April 30, 2021 Derivative Assets Derivative Liabilities (in millions) Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedging instruments Currency exchange rate contracts Other current assets $ 49 Other accrued expenses $ 190 Currency exchange rate contracts Other assets 22 Other liabilities 94 Total derivatives designated as hedging instruments 70 285 Derivatives not designated as hedging instruments Currency exchange rate contracts Other current assets 14 Other accrued expenses 11 Total return swaps Other current assets 18 Other accrued expenses — Total derivatives not designated as hedging instruments 32 11 Total derivatives $ 102 $ 296 |
Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table provides information by level for the derivative assets and liabilities that are measured at fair value on a recurring basis. July 30, 2021 April 30, 2021 (in millions) Level 1 Level 2 Level 1 Level 2 Derivative assets $ 147 $ 13 $ 85 $ 18 Derivative liabilities 181 — 296 — |
Offsetting Assets | The following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation. July 30, 2021 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 147 $ (111) $ — $ 36 Total return swaps 13 — — 13 160 (111) — 49 Derivative liabilities: Currency exchange rate contracts (181) 111 25 (46) Total $ (21) $ — $ 25 $ 4 April 30, 2021 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 85 $ (83) $ — $ 1 Total return swaps 18 — — 18 102 (83) — 19 Derivative liabilities: Currency exchange rate contracts (296) 83 46 (167) Total $ (194) $ — $ 46 $ (148) |
Offsetting Liabilities | The following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation. July 30, 2021 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 147 $ (111) $ — $ 36 Total return swaps 13 — — 13 160 (111) — 49 Derivative liabilities: Currency exchange rate contracts (181) 111 25 (46) Total $ (21) $ — $ 25 $ 4 April 30, 2021 Gross Amount Not Offset on the Balance Sheet (in millions) Gross Amount of Recorded Assets (Liabilities) Financial Instruments Cash Collateral Posted (Received) Net Amount Derivative assets: Currency exchange rate contracts $ 85 $ (83) $ — $ 1 Total return swaps 18 — — 18 102 (83) — 19 Derivative liabilities: Currency exchange rate contracts (296) 83 46 (167) Total $ (194) $ — $ 46 $ (148) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory Balances | Inventory balances, net of reserves, were as follows: (in millions) July 30, 2021 April 30, 2021 Finished goods $ 2,884 $ 2,906 Work in-process 602 611 Raw materials 802 796 Total $ 4,288 $ 4,313 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Jul. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill | The following table presents the changes in the carrying amount of goodwill by segment: (in millions) Cardiovascular Medical Surgical Neuroscience Diabetes Total April 30, 2021 $ 7,209 $ 21,195 $ 11,300 $ 2,257 $ 41,961 Purchase accounting adjustments 26 — 3 (2) 27 Currency translation and other (17) (203) (48) — (268) July 30, 2021 $ 7,218 $ 20,992 $ 11,255 $ 2,255 $ 41,720 |
Gross Carrying Amount and Accumulated Amortization of Definite-Lived Intangible Assets | The following table presents the gross carrying amount and accumulated amortization of intangible assets: July 30, 2021 April 30, 2021 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 17,010 $ (6,296) $ 17,036 $ (6,058) Purchased technology and patents 10,687 (5,143) 11,286 (5,156) Trademarks and tradenames 475 (255) 475 (251) Other 78 (60) 82 (68) Total $ 28,250 $ (11,754) $ 28,879 $ (11,533) Indefinite-lived: IPR&D $ 394 $ — $ 394 $ — |
Gross Carrying Amount of Indefinite-Lived Intangible Assets | The following table presents the gross carrying amount and accumulated amortization of intangible assets: July 30, 2021 April 30, 2021 (in millions) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived: Customer-related $ 17,010 $ (6,296) $ 17,036 $ (6,058) Purchased technology and patents 10,687 (5,143) 11,286 (5,156) Trademarks and tradenames 475 (255) 475 (251) Other 78 (60) 82 (68) Total $ 28,250 $ (11,754) $ 28,879 $ (11,533) Indefinite-lived: IPR&D $ 394 $ — $ 394 $ — |
Estimated Future Aggregate Amortization Expense, Definite-Lived Intangible Assets | Estimated aggregate amortization expense by fiscal year based on the carrying value of definite-lived intangible assets at July 30, 2021, excluding any possible future amortization associated with acquired IPR&D which has not yet met technological feasibility, is as follows: (in millions) Amortization Expense Remaining 2022 $ 1,286 2023 1,654 2024 1,619 2025 1,597 2026 1,583 2027 1,558 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jul. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The table below sets forth the computation of basic and diluted earnings per share: Three months ended (in millions, except per share data) July 30, 2021 July 31, 2020 Numerator: Net income attributable to ordinary shareholders $ 763 $ 487 Denominator: Basic – weighted average shares outstanding 1,344.5 1,341.9 Effect of dilutive securities: Employee stock options 8.5 4.7 Employee restricted stock units 2.3 2.7 Other 1.0 0.7 Diluted – weighted average shares outstanding 1,356.4 1,350.0 Basic earnings per share $ 0.57 $ 0.36 Diluted earnings per share $ 0.56 $ 0.36 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jul. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Components and Classification of Stock-based Compensation Expense | The following table presents the components and classification of stock-based compensation expense for stock options, restricted stock, performance share units, and employee stock purchase plan shares recognized for the three months ended July 30, 2021 and July 31, 2020: Three months ended (in millions) July 30, 2021 July 31, 2020 Stock options $ 10 $ 8 Restricted stock 41 50 Performance share units 6 — Employee stock purchase plan 11 12 Total stock-based compensation expense $ 69 $ 70 Cost of products sold $ 7 $ 7 Research and development expense 8 8 Selling, general, and administrative expense 55 55 Total stock-based compensation expense 69 70 Income tax benefits (11) (11) Total stock-based compensation expense, net of tax $ 58 $ 59 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 3 Months Ended |
Jul. 30, 2021 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The net periodic benefit cost of the defined benefit pension plans included the following components for the three months ended July 30, 2021 and July 31, 2020: U.S. Non-U.S. Three months ended Three months ended (in millions) July 30, 2021 July 31, 2020 July 30, 2021 July 31, 2020 Service cost $ 25 $ 27 $ 16 $ 17 Interest cost 26 27 7 6 Expected return on plan assets (57) (61) (16) (14) Amortization of net actuarial loss 16 18 5 6 Net periodic benefit cost $ 10 $ 11 $ 12 $ 15 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jul. 30, 2021 | |
Equity [Abstract] | |
Changes in AOCI by Component | The following table provides changes in AOCI, net of tax, and by component: (in millions) Unrealized Gain (Loss) on Investment Securities Cumulative Translation Adjustments Net Investment Hedges Net Change in Retirement Obligations Unrealized Gain (Loss) on Cash Flow Hedges Total Accumulated Other Comprehensive (Loss) Income April 30, 2021 $ 92 $ (519) $ (1,458) $ (1,347) $ (253) $ (3,485) Other comprehensive income (loss) before reclassifications 14 (353) 424 1 144 230 Reclassifications (2) — — 18 30 46 Other comprehensive income (loss) 12 (353) 424 19 174 276 July 30, 2021 $ 104 $ (872) $ (1,034) $ (1,328) $ (79) $ (3,209) (in millions) Unrealized Gain (Loss) on Investment Securities Cumulative Translation Adjustment Net Investment Hedges Net Change in Retirement Obligations Unrealized Gain (Loss) on Cash Flow Hedges Total Accumulated Other Comprehensive (Loss) Income April 24, 2020 $ — $ (2,210) $ 236 $ (1,852) $ 266 $ (3,560) Other comprehensive income (loss) before reclassifications 125 1,112 (1,112) (12) (309) (196) Reclassifications — — — 15 (41) (26) Other comprehensive income (loss) 125 1,112 (1,112) 3 (350) (222) July 31, 2020 $ 125 $ (1,098) $ (876) $ (1,849) $ (84) $ (3,782) |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Jul. 30, 2021 | |
Segment Reporting [Abstract] | |
Income From Operations Before Income Taxes by Reportable Segment and Reconciliation to Consolidated | The following tables present reconciliations of financial information from the segments to the applicable line items in the Company's consolidated financial statements: Segment Operating Profit Three months ended (in millions) July 30, 2021 July 31, 2020 Cardiovascular $ 1,161 $ 759 Medical Surgical 914 455 Neuroscience 962 523 Diabetes 133 103 Segment operating profit 3,170 1,840 Interest expense (137) (171) Other non-operating income, net 111 82 Amortization of intangible assets (436) (440) Corporate (449) (365) Centralized distribution costs (464) (399) Restructuring and associated costs (81) (128) Acquisition-related items (109) 95 Certain litigation charges, net (26) 88 MCS impairments / costs (726) — Medical device regulations (21) (18) Income before income taxes $ 833 $ 584 |
Net Sales to External Customers by Geography | The following table presents net sales for the three months ended July 30, 2021 and July 31, 2020 for the Company's country of domicile, countries with significant concentrations, and all other countries: Three months ended (in millions) July 30, 2021 July 31, 2020 Ireland $ 26 $ 24 United States 4,101 3,351 Rest of world 3,860 3,132 Total other countries, excluding Ireland 7,961 6,483 Total $ 7,987 $ 6,507 |
Revenue - Disaggregation of Net
Revenue - Disaggregation of Net Sales by Segment and Division (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 7,987 | $ 6,507 |
Cardiovascular | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,890 | 2,433 |
Cardiovascular | Cardiac Rhythm & Heart Failure | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,483 | 1,247 |
Cardiovascular | Structural Heart & Aortic | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 787 | 627 |
Cardiovascular | Coronary & Peripheral Vascular | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 620 | 558 |
Medical Surgical | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,322 | 1,801 |
Medical Surgical | Surgical Innovations | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,554 | 1,080 |
Medical Surgical | Respiratory, Gastrointestinal, & Renal | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 768 | 720 |
Neuroscience | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,204 | 1,712 |
Neuroscience | Cranial & Spinal Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,123 | 944 |
Neuroscience | Specialty Therapies | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 641 | 453 |
Neuroscience | Neuromodulation | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 440 | 314 |
Diabetes | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 572 | $ 562 |
Revenue - Disaggregation of N_2
Revenue - Disaggregation of Net Sales by Market Geography for Each Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 7,987 | $ 6,507 |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4,101 | 3,351 |
Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,601 | 2,175 |
Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,286 | 981 |
Cardiovascular | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,890 | 2,433 |
Cardiovascular | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,420 | 1,206 |
Cardiovascular | Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,003 | 853 |
Cardiovascular | Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 467 | 374 |
Medical Surgical | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,322 | 1,801 |
Medical Surgical | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 990 | 722 |
Medical Surgical | Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 869 | 719 |
Medical Surgical | Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 463 | 359 |
Neuroscience | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,204 | 1,712 |
Neuroscience | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,446 | 1,136 |
Neuroscience | Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 465 | 376 |
Neuroscience | Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 293 | 199 |
Diabetes | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 572 | 562 |
Diabetes | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 245 | 287 |
Diabetes | Non-U.S. Developed Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 263 | 226 |
Diabetes | Emerging Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 63 | $ 48 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Apr. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 375 | $ 368 |
Revenue recognized that was previously included in deferred revenue | 84 | |
Estimated revenue expected to be recognized in future periods related to unsatisfied performance obligations | $ 1,200 | |
Period over which remaining performance obligations are expected to be recognized as revenue | four years | |
Other accrued expenses | ||
Disaggregation of Revenue [Line Items] | ||
Rebate obligations | $ 987 | 906 |
Deferred revenue | 278 | 276 |
Reduction of accounts receivable | ||
Disaggregation of Revenue [Line Items] | ||
Rebate obligations | 535 | 485 |
Other liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 96 | $ 93 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jul. 30, 2021 | Jul. 31, 2020 | Apr. 30, 2021 | Apr. 24, 2020 | |
Business Acquisition [Line Items] | ||||
Gain related to change in amounts accrued for certain contingent liabilities for recent acquisition | $ 132 | |||
Contingent consideration liabilities | $ 294 | $ 297 | $ 270 | $ 280 |
IPR&D | ||||
Business Acquisition [Line Items] | ||||
Asset acquisition | 90 | |||
Other accrued expenses | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration liabilities | 99 | 78 | ||
Other liabilities | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration liabilities | $ 195 | $ 192 |
Acquisitions - Reconciliation o
Acquisitions - Reconciliation of Beginning and Ending Balances of Contingent Consideration (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments [Roll Forward] | ||
Beginning balance | $ 270 | $ 280 |
Purchase price allocation adjustments | 25 | 0 |
Payments | (11) | (1) |
Change in fair value | 10 | 18 |
Ending balance | $ 294 | $ 297 |
Acquisitions - Fair Value Measu
Acquisitions - Fair Value Measurement, Contingent Consideration, Significant Unobservable Inputs (Details) $ in Millions | Jul. 30, 2021USD ($) | Apr. 30, 2021USD ($) | Jul. 31, 2020USD ($) | Apr. 24, 2020USD ($) |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Contingent consideration, fair value | $ 294 | $ 270 | $ 297 | $ 280 |
Revenue and other performance-based payments | Recurring | Level 3 | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Contingent consideration, fair value | $ 259 | |||
Revenue and other performance-based payments | Minimum | Recurring | Level 3 | Discount rate | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.112 | |||
Revenue and other performance-based payments | Minimum | Recurring | Level 3 | Probability of payment | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.30 | |||
Revenue and other performance-based payments | Maximum | Recurring | Level 3 | Discount rate | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.316 | |||
Revenue and other performance-based payments | Maximum | Recurring | Level 3 | Probability of payment | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 1 | |||
Revenue and other performance-based payments | Weighted Average | Recurring | Level 3 | Discount rate | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.172 | |||
Revenue and other performance-based payments | Weighted Average | Recurring | Level 3 | Probability of payment | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.914 | |||
Product development and other milestone-based payments | Recurring | Level 3 | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Contingent consideration, fair value | $ 35 | |||
Product development and other milestone-based payments | Recurring | Level 3 | Discount rate | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.055 | |||
Product development and other milestone-based payments | Minimum | Recurring | Level 3 | Probability of payment | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 1 | |||
Product development and other milestone-based payments | Weighted Average | Recurring | Level 3 | Discount rate | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 0.055 | |||
Product development and other milestone-based payments | Weighted Average | Recurring | Level 3 | Probability of payment | ||||
Fair Value Inputs | ||||
Contingent consideration, significant unobservable inputs | 1 |
Restructuring and Other Costs -
Restructuring and Other Costs - Narrative (Details) patient in Thousands | 3 Months Ended | ||
Jul. 30, 2021USD ($) | Jul. 31, 2020USD ($) | Jun. 03, 2021patient | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | $ 11,000,000 | $ 53,000,000 | |
MCS asset impairment and inventory write-down | 515,000,000 | 0 | |
Definite-lived intangible asset charges | 0 | ||
Cardiovascular | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring write down and impairment provisions | 726,000,000 | ||
MCS asset impairment and inventory write-down | 515,000,000 | ||
Definite-lived intangible asset charges | 409,000,000 | ||
Inventory write-down | 58,000,000 | ||
Other restructuring costs | 211,000,000 | ||
Restructuring reserve, current | 130,000,000 | ||
Restructuring reserve, noncurrent | 41,000,000 | ||
Number of mechanical circulatory support patients (in patients) | patient | 4 | ||
Cost of products sold | Cardiovascular | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring write down and impairment provisions | 58,000,000 | ||
Other operating expense (income), net | Cardiovascular | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring write down and impairment provisions | 668,000,000 | ||
Enterprise Excellence | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | 74,000,000 | 77,000,000 | |
Charges | 75,000,000 | ||
Enterprise Excellence | Cost of products sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges | 33,000,000 | 27,000,000 | |
Enterprise Excellence | Selling, general, and administrative expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges | 30,000,000 | 47,000,000 | |
Enterprise Excellence | Pre-tax exit and disposal costs and other | |||
Restructuring Cost and Reserve [Line Items] | |||
Cost incurred to date | $ 1,400,000,000 | ||
Percent of charges related to employee termination benefits | 40.00% | ||
Enterprise Excellence | Minimum | Pre-tax exit and disposal costs and other | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cost | $ 1,600,000,000 | ||
Enterprise Excellence | Maximum | Pre-tax exit and disposal costs and other | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cost | 1,800,000,000 | ||
Simplification | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | 7,000,000 | 51,000,000 | |
Charges | 10,000,000 | ||
Simplification | Restructuring charges, net | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | $ 50,000,000 | ||
Simplification | Pre-tax exit and disposal costs and other | |||
Restructuring Cost and Reserve [Line Items] | |||
Cost incurred to date | $ 274,000,000 | ||
Percent of charges related to employee termination benefits | 75.00% | ||
Simplification | Minimum | Pre-tax exit and disposal costs and other | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cost | $ 400,000,000 | ||
Simplification | Maximum | Pre-tax exit and disposal costs and other | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cost | $ 450,000,000 |
Restructuring and Other Costs_2
Restructuring and Other Costs - Activity Related to Restructuring Programs (Details) $ in Millions | 3 Months Ended |
Jul. 30, 2021USD ($) | |
Enterprise Excellence | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 83 |
Charges | 75 |
Cash payments | (82) |
Accrual adjustments | (1) |
Ending balance | 75 |
Enterprise Excellence | Employee Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 64 |
Charges | 12 |
Cash payments | (14) |
Accrual adjustments | (1) |
Ending balance | 61 |
Enterprise Excellence | Associated Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 18 |
Charges | 63 |
Cash payments | (68) |
Accrual adjustments | 0 |
Ending balance | 13 |
Enterprise Excellence | Other Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 1 |
Charges | 0 |
Cash payments | 0 |
Accrual adjustments | 0 |
Ending balance | 1 |
Simplification | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 63 |
Charges | 10 |
Cash payments | (41) |
Accrual adjustments | (3) |
Ending balance | 29 |
Simplification | Employee Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 59 |
Charges | 3 |
Cash payments | (32) |
Accrual adjustments | (3) |
Ending balance | 27 |
Simplification | Associated Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 4 |
Charges | 7 |
Cash payments | (9) |
Accrual adjustments | 0 |
Ending balance | $ 2 |
Financial Instruments - Investm
Financial Instruments - Investments by Category and Related Balance Sheet Classification (Details) - USD ($) $ in Millions | Jul. 30, 2021 | Apr. 30, 2021 |
Schedule of Investments [Line Items] | ||
Cost | $ 7,497 | $ 7,144 |
Unrealized Gains | 162 | 155 |
Unrealized Losses | (35) | (42) |
Fair Value | 7,624 | 7,257 |
Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 7,591 | 7,224 |
Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 33 | 33 |
Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 6,939 | 6,603 |
Unrealized Gains | 133 | 129 |
Unrealized Losses | (30) | (36) |
Fair Value | 7,042 | 6,696 |
Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 7,042 | 6,696 |
Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
U.S. government and agency securities | Level 1 | ||
Schedule of Investments [Line Items] | ||
Cost | 522 | 505 |
Unrealized Gains | 29 | 26 |
Unrealized Losses | (2) | (3) |
Fair Value | 549 | 528 |
U.S. government and agency securities | Level 1 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 549 | 528 |
U.S. government and agency securities | Level 1 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
U.S. government and agency securities | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 880 | 810 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | (3) | (7) |
Fair Value | 878 | 804 |
U.S. government and agency securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 878 | 804 |
U.S. government and agency securities | Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Corporate debt securities | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 4,807 | 4,557 |
Unrealized Gains | 104 | 103 |
Unrealized Losses | (10) | (13) |
Fair Value | 4,901 | 4,647 |
Corporate debt securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 4,901 | 4,647 |
Corporate debt securities | Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Mortgage-backed securities | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 649 | 645 |
Unrealized Gains | 24 | 21 |
Unrealized Losses | (16) | (16) |
Fair Value | 656 | 650 |
Mortgage-backed securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 656 | 650 |
Mortgage-backed securities | Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Non-U.S. government and agency securities | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 30 | 31 |
Unrealized Gains | 1 | 1 |
Unrealized Losses | 0 | 0 |
Fair Value | 31 | 33 |
Non-U.S. government and agency securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 31 | 33 |
Non-U.S. government and agency securities | Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Certificates of deposit | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 15 | 19 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 15 | 19 |
Certificates of deposit | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 15 | 19 |
Certificates of deposit | Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | ||
Other asset-backed securities | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 552 | 534 |
Unrealized Gains | 3 | 4 |
Unrealized Losses | 0 | (1) |
Fair Value | 555 | 537 |
Other asset-backed securities | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 555 | 537 |
Other asset-backed securities | Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Debt funds | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cost | 6 | 7 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 6 | 7 |
Debt funds | Level 2 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 6 | 7 |
Debt funds | Level 2 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Auction rate securities | Level 3 | ||
Schedule of Investments [Line Items] | ||
Cost | 36 | 36 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3) | (3) |
Fair Value | 33 | 33 |
Auction rate securities | Level 3 | Investments | ||
Schedule of Investments [Line Items] | ||
Fair Value | 0 | 0 |
Auction rate securities | Level 3 | Other Assets | ||
Schedule of Investments [Line Items] | ||
Fair Value | $ 33 | $ 33 |
Financial Instruments - Availab
Financial Instruments - Available-For-Sale Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions | Jul. 30, 2021 | Apr. 30, 2021 |
Fair Value | ||
Less than 12 months | $ 976 | $ 946 |
More than 12 months | 3,954 | 4,423 |
Unrealized Losses | ||
Less than 12 months | (6) | (10) |
More than 12 months | (29) | (32) |
U.S. government and agency securities | ||
Fair Value | ||
Less than 12 months | 976 | 946 |
More than 12 months | 0 | 0 |
Unrealized Losses | ||
Less than 12 months | (6) | (10) |
More than 12 months | 0 | 0 |
Corporate debt securities | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
More than 12 months | 3,265 | 3,209 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
More than 12 months | (10) | (13) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
More than 12 months | 656 | 650 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
More than 12 months | (16) | (16) |
Other asset-backed securities | ||
Fair Value | ||
Less than 12 months | 0 | |
More than 12 months | 531 | |
Unrealized Losses | ||
Less than 12 months | 0 | |
More than 12 months | (1) | |
Auction rate securities | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
More than 12 months | 33 | 33 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
More than 12 months | $ (3) | $ (3) |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Equity Securities and Other Investments | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains on equity and other investments still held | $ 15 | $ 12 |
Financial Instruments - Activit
Financial Instruments - Activity Related to the Company's Investment Portfolio and Debt Securities Contractual Maturities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 30, 2021 | Jul. 31, 2020 | Apr. 30, 2021 | |
Activities Related to Debt Securities Portfolio | |||
Proceeds from sales | $ 2,272 | $ 2,403 | |
Gross realized gains | 4 | 5 | |
Gross realized losses | (2) | $ (6) | |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | |||
Due in one year or less | 2,170 | ||
Due after one year through five years | 2,978 | ||
Due after five years through ten years | 1,817 | ||
Due after ten years | 660 | ||
Total | $ 7,624 | $ 7,257 |
Financial Instruments - Summary
Financial Instruments - Summary of Equity and Other Investments (Details) - Other Assets - USD ($) $ in Millions | Jul. 30, 2021 | Apr. 30, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Investments with readily determinable fair value (marketable equity securities) | $ 74 | $ 74 |
Investments without readily determinable fair values | 540 | 537 |
Equity method and other investments | 78 | 76 |
Total equity and other investments | $ 692 | $ 687 |
Financial Instruments - Activ_2
Financial Instruments - Activity Related to the Company's Investment Portfolio, Equity and Other Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Marketable Securities [Line Items] | ||
Proceeds from sales | $ 2,324 | $ 2,403 |
Equity and Other Investments | ||
Marketable Securities [Line Items] | ||
Proceeds from sales | 52 | 0 |
Gross gains | 58 | 12 |
Gross losses | (5) | 0 |
Impairment losses recognized | $ (10) | $ (2) |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) | Nov. 12, 2020 | May 12, 2020JPY (¥) | Mar. 31, 2021EUR (€) | Oct. 30, 2020USD ($) | Oct. 30, 2020EUR (€) | Sep. 30, 2020USD ($) | Jul. 30, 2021USD ($) | Oct. 30, 2020USD ($) | Apr. 30, 2021USD ($) | Sep. 30, 2020EUR (€)tranche |
Debt Instrument [Line Items] | ||||||||||
Amount of current debt obligations outstanding | $ 6,000,000 | $ 11,000,000 | ||||||||
Principal value | 26,100,000,000 | 26,500,000,000 | ||||||||
Total debt, fair value | 29,200,000,000 | 28,600,000,000 | ||||||||
Term Loan Agreements | Medtronic Luxco | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term of debt instrument | 6 months | |||||||||
Principal value | ¥ | ¥ 300,000,000,000 | |||||||||
Additional extension option, term of extension | 6 months | 6 months | ||||||||
Term Loan Agreements | Medtronic Luxco | TIBOR Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Margin added to variable rate | 0.50% | |||||||||
Commercial Paper | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of current debt obligations outstanding | 0 | 0 | ||||||||
Commercial Paper Program | Commercial Paper | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commercial paper, maximum borrowing amount | 3,500,000,000 | |||||||||
Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, maximum capacity | $ 3,500,000,000 | |||||||||
Term of debt instrument | 5 years | |||||||||
Line of credit, amount outstanding | $ 0 | $ 0 | ||||||||
Medtronic Inc, CIFSA, and Medtronic Luxco Senior Notes | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total consideration | $ 6,300,000,000 | |||||||||
Loss on extinguishment of debt | $ 308,000,000 | |||||||||
Medtronic Inc and CIFSA Senior Notes | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extinguishment of debt | $ 4,300,000,000 | |||||||||
Medtronic Luxco Senior Notes | Senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extinguishment of debt | € | € 750,000,000 | € 1,500,000,000 | ||||||||
Senior Notes 2020 | Senior notes | Medtronic Luxco | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of tranches (in tranches) | tranche | 6 | |||||||||
Principal value | € | € 6,300,000,000 | |||||||||
Cash proceeds, net of discounts and issuance costs | $ 7,200,000,000 |
Financing Arrangements - Long-T
Financing Arrangements - Long-Term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Apr. 30, 2021 | |
Debt Instrument [Line Items] | ||
Current debt obligations | $ 6 | $ 11 |
Long-term debt | ||
Finance lease obligations | 60 | 62 |
Deferred financing costs | (120) | (125) |
Debt discount, net | (71) | (75) |
Long-term debt | $ 25,958 | 26,378 |
Senior notes | 0.000 percent three-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 0.00% | |
Term of debt instrument | 3 years | |
Long-term debt, gross | $ 887 | 907 |
Senior notes | 0.375 percent four-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 0.375% | |
Term of debt instrument | 4 years | |
Long-term debt, gross | $ 1,773 | 1,813 |
Senior notes | 0.000 percent two-year 2020 senior notes | ||
Long-term debt | ||
Stated interest rate | 0.00% | |
Term of debt instrument | 2 years | |
Long-term debt, gross | $ 1,478 | 1,511 |
Senior notes | 3.500 percent ten-year 2015 senior notes | ||
Long-term debt | ||
Stated interest rate | 3.50% | |
Term of debt instrument | 10 years | |
Long-term debt, gross | $ 1,890 | 1,890 |
Senior notes | 0.250 percent six-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 0.25% | |
Term of debt instrument | 6 years | |
Long-term debt, gross | $ 1,182 | 1,209 |
Senior notes | 0.000 percent five-year 2020 senior notes | ||
Long-term debt | ||
Stated interest rate | 0.00% | |
Term of debt instrument | 5 years | |
Long-term debt, gross | $ 1,182 | 1,209 |
Senior notes | 3.350 percent ten-year 2017 senior notes | ||
Long-term debt | ||
Stated interest rate | 3.35% | |
Term of debt instrument | 10 years | |
Long-term debt, gross | $ 368 | 368 |
Senior notes | 1.125 percent eight-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 1.125% | |
Term of debt instrument | 8 years | |
Long-term debt, gross | $ 1,773 | 1,813 |
Senior notes | 0.375 percent eight-year 2020 senior notes | ||
Long-term debt | ||
Stated interest rate | 0.375% | |
Term of debt instrument | 8 years | |
Long-term debt, gross | $ 1,182 | 1,209 |
Senior notes | 1.625 percent twelve-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 1.625% | |
Term of debt instrument | 12 years | |
Long-term debt, gross | $ 1,182 | 1,209 |
Senior notes | 1.000 percent twelve-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 1.00% | |
Term of debt instrument | 12 years | |
Long-term debt, gross | $ 1,182 | 1,209 |
Senior notes | 0.750 percent twelve-year 2020 senior notes | ||
Long-term debt | ||
Stated interest rate | 0.75% | |
Term of debt instrument | 12 years | |
Long-term debt, gross | $ 1,182 | 1,209 |
Senior notes | 4.375 percent twenty-year 2015 senior notes | ||
Long-term debt | ||
Stated interest rate | 4.375% | |
Term of debt instrument | 20 years | |
Long-term debt, gross | $ 1,932 | 1,932 |
Senior notes | 6.550 percent thirty-year 2007 CIFSA senior notes | ||
Long-term debt | ||
Stated interest rate | 6.55% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 253 | 253 |
Senior notes | 6.500 percent thirty-year 2009 senior notes | ||
Long-term debt | ||
Stated interest rate | 6.50% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 158 | 158 |
Senior notes | 2.250 percent twenty-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 2.25% | |
Term of debt instrument | 20 years | |
Long-term debt, gross | $ 1,182 | 1,209 |
Senior notes | 5.550 percent thirty-year 2010 senior notes | ||
Long-term debt | ||
Stated interest rate | 5.55% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 224 | 224 |
Senior notes | 1.500 percent twenty-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 1.50% | |
Term of debt instrument | 20 years | |
Long-term debt, gross | $ 1,182 | 1,209 |
Senior notes | 1.375 percent twenty-year 2020 senior notes | ||
Long-term debt | ||
Stated interest rate | 1.375% | |
Term of debt instrument | 20 years | |
Long-term debt, gross | $ 1,182 | 1,209 |
Senior notes | 4.500 percent thirty-year 2012 senior notes | ||
Long-term debt | ||
Stated interest rate | 4.50% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 105 | 105 |
Senior notes | 4.000 percent thirty-year 2013 senior notes | ||
Long-term debt | ||
Stated interest rate | 4.00% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 305 | 305 |
Senior notes | 4.625 percent thirty-year 2014 senior notes | ||
Long-term debt | ||
Stated interest rate | 4.625% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 127 | 127 |
Senior notes | 4.625 percent thirty-year 2015 senior notes | ||
Long-term debt | ||
Stated interest rate | 4.625% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 1,813 | 1,813 |
Senior notes | 1.750 percent thirty-year 2019 senior notes | ||
Long-term debt | ||
Stated interest rate | 1.75% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 1,182 | 1,209 |
Senior notes | 1.625 percent thirty-year 2020 senior notes | ||
Long-term debt | ||
Stated interest rate | 1.625% | |
Term of debt instrument | 30 years | |
Long-term debt, gross | $ 1,182 | $ 1,209 |
Derivatives and Currency Exch_3
Derivatives and Currency Exchange Risk Management - Narrative (Details) € in Billions | 3 Months Ended | |||
Jul. 30, 2021USD ($) | Jul. 31, 2020USD ($) | Jul. 30, 2021EUR (€) | Apr. 30, 2021USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
After-tax net unrealized gains (losses) associated with cash flow hedging instruments recorded in AOCI | $ (79,000,000) | $ (253,000,000) | ||
Cash flow hedge unrealized losses to be reclassified over the next 12 months | (33,000,000) | |||
Net investment hedge unrealized gains or losses to be reclassified over the next twelve months, net of tax | 0 | |||
Gains (losses) on firm commitments that no longer qualify as net investment hedges | 0 | $ 0 | ||
Net investment hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
After-tax unrealized gains (losses) | (1,000,000,000) | (1,500,000,000) | ||
Currency exchange rate contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gross notional amount | 15,000,000,000 | 14,700,000,000 | ||
Currency exchange rate contracts | Derivatives not designated as hedging instruments | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gross notional amount | 5,200,000,000 | 5,700,000,000 | ||
Currency exchange rate contracts | Derivatives designated as hedging instruments | Cash flow hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gross notional amount | $ 9,800,000,000 | 9,000,000,000 | ||
Maximum remaining maturity of foreign currency derivatives | 3 years | |||
Currency exchange rate contracts | Derivatives designated as hedging instruments | Net investment hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gross notional amount | € | € 16 | |||
Currency exchange rate contracts | Derivatives designated as hedging instruments | Net investment hedging | Euro-denominated Debt | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gross notional amount | $ 18,900,000,000 | |||
Total return swaps | Derivatives not designated as hedging instruments | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gross notional amount | $ 235,000,000 | $ 243,000,000 |
Derivatives and Currency Exch_4
Derivatives and Currency Exchange Risk Management - Derivative (Gains) Losses Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Derivative Instruments, (Gain) Loss [Line Items] | ||
Total | $ (30) | $ 100 |
Other operating expense (income), net | Currency exchange rate contracts | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Total | (17) | 127 |
Other operating expense (income), net | Total return swaps | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Total | $ (13) | $ (27) |
Derivatives and Currency Exch_5
Derivatives and Currency Exchange Risk Management - (Gains) Losses Recognized in AOCI, Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Currency exchange rate contracts | Cash flow hedging | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Recognized in AOCI, Cash flow hedges | $ (160) | $ 389 |
Derivatives and Currency Exch_6
Derivatives and Currency Exchange Risk Management - Amount of (Gains) Losses Recognized in Consolidated Statements of Income, Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Other operating expense (income), net | $ 760 | $ (114) |
Cash flow hedging | Currency exchange rate contracts | Other operating expense (income), net | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of (gain) loss reclassified from AOCI into income | 19 | (53) |
Cash flow hedging | Currency exchange rate contracts | Cost of products sold | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of (gain) loss reclassified from AOCI into income | $ 11 | $ 0 |
Derivatives and Currency Exch_7
Derivatives and Currency Exchange Risk Management - (Gains) Losses Recognized in AOCI, Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Currency exchange rate contracts | Net investment hedging | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Recognized in AOCI, Net investment hedges | $ (424) | $ 1,112 |
Derivatives and Currency Exch_8
Derivatives and Currency Exchange Risk Management - Classification and Fair Value Amounts of Derivative Instruments in Balance Sheets (Details) - USD ($) $ in Millions | Jul. 30, 2021 | Apr. 30, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | $ 160 | $ 102 |
Derivative Liabilities, Fair Value | 181 | 296 |
Currency exchange rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 147 | 85 |
Derivative Liabilities, Fair Value | 181 | 296 |
Total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 13 | 18 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 130 | 70 |
Derivative Liabilities, Fair Value | 160 | 285 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 88 | 49 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 42 | 22 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 109 | 190 |
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 51 | 94 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 30 | 32 |
Derivative Liabilities, Fair Value | 21 | 11 |
Derivatives not designated as hedging instruments | Currency exchange rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 16 | 14 |
Derivatives not designated as hedging instruments | Currency exchange rate contracts | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | 21 | 11 |
Derivatives not designated as hedging instruments | Total return swaps | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Fair Value | 13 | 18 |
Derivatives not designated as hedging instruments | Total return swaps | Other accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Fair Value | $ 0 | $ 0 |
Derivatives and Currency Exch_9
Derivatives and Currency Exchange Risk Management - Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Jul. 30, 2021 | Apr. 30, 2021 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 147 | $ 85 |
Derivative liabilities | 181 | 296 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 13 | 18 |
Derivative liabilities | $ 0 | $ 0 |
Derivatives and Currency Exc_10
Derivatives and Currency Exchange Risk Management - Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Jul. 30, 2021 | Apr. 30, 2021 |
Derivative assets: | ||
Gross Amount of Recorded Assets (Liabilities) | $ 160 | $ 102 |
Financial Instruments | (111) | (83) |
Cash Collateral Posted (Received) | 0 | 0 |
Net Amount | 49 | 19 |
Derivative liabilities: | ||
Gross Amount of Recorded Assets (Liabilities) | (181) | (296) |
Total | ||
Gross Amount of Recorded Assets (Liabilities) | (21) | (194) |
Financial Instruments | 0 | 0 |
Cash Collateral Posted (Received) | 25 | 46 |
Net Amount | 4 | (148) |
Currency exchange rate contracts | ||
Derivative assets: | ||
Gross Amount of Recorded Assets (Liabilities) | 147 | 85 |
Financial Instruments | (111) | (83) |
Cash Collateral Posted (Received) | 0 | 0 |
Net Amount | 36 | 1 |
Derivative liabilities: | ||
Gross Amount of Recorded Assets (Liabilities) | (181) | (296) |
Financial Instruments | 111 | 83 |
Cash Collateral Posted (Received) | 25 | 46 |
Net Amount | (46) | (167) |
Total return swaps | ||
Derivative assets: | ||
Gross Amount of Recorded Assets (Liabilities) | 13 | 18 |
Financial Instruments | 0 | 0 |
Cash Collateral Posted (Received) | 0 | 0 |
Net Amount | $ 13 | $ 18 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jul. 30, 2021 | Apr. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 2,884 | $ 2,906 |
Work in-process | 602 | 611 |
Raw materials | 802 | 796 |
Total | $ 4,288 | $ 4,313 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill (Details) $ in Millions | 3 Months Ended |
Jul. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 41,961 |
Purchase accounting adjustments | 27 |
Currency translation and other | (268) |
Ending balance | 41,720 |
Cardiovascular | |
Goodwill [Roll Forward] | |
Beginning balance | 7,209 |
Purchase accounting adjustments | 26 |
Currency translation and other | (17) |
Ending balance | 7,218 |
Medical Surgical | |
Goodwill [Roll Forward] | |
Beginning balance | 21,195 |
Purchase accounting adjustments | 0 |
Currency translation and other | (203) |
Ending balance | 20,992 |
Neuroscience | |
Goodwill [Roll Forward] | |
Beginning balance | 11,300 |
Purchase accounting adjustments | 3 |
Currency translation and other | (48) |
Ending balance | 11,255 |
Diabetes | |
Goodwill [Roll Forward] | |
Beginning balance | 2,257 |
Purchase accounting adjustments | (2) |
Currency translation and other | 0 |
Ending balance | $ 2,255 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill impairment | $ 0 | $ 0 |
Definite-lived intangible asset charges | 0 | |
Impairment of indefinite-lived intangible assets | 0 | 0 |
Amortization expense | 436,000,000 | $ 440,000,000 |
Cardiovascular | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible asset charges | $ 409,000,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Carrying Amount and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Millions | Jul. 30, 2021 | Apr. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 28,250 | $ 28,879 |
Accumulated Amortization | (11,754) | (11,533) |
IPR&D | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Indefinite-lived | 394 | 394 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 17,010 | 17,036 |
Accumulated Amortization | (6,296) | (6,058) |
Purchased technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10,687 | 11,286 |
Accumulated Amortization | (5,143) | (5,156) |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 475 | 475 |
Accumulated Amortization | (255) | (251) |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 78 | 82 |
Accumulated Amortization | $ (60) | $ (68) |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Future Aggregate Amortization Expense of Amortizable Intangible Assets (Details) $ in Millions | Jul. 30, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining 2022 | $ 1,286 |
2023 | 1,654 |
2024 | 1,619 |
2025 | 1,597 |
2026 | 1,583 |
2027 | $ 1,558 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 30, 2021 | Jul. 31, 2020 | Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 7.70% | 15.90% | |
Certain tax adjustments, provision (benefit) | $ 39 | ||
Gross unrecognized tax benefits | 1,700 | $ 1,700 | |
Accrued gross interest and penalties | 104 | ||
Unrecognized tax benefits that would impact effective tax rate | 1,600 | ||
Gross unrecognized tax benefits, net of cash advance, recorded as noncurrent liability | $ 810 | $ 809 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Numerator: | ||
Net income attributable to ordinary shareholders | $ 763 | $ 487 |
Denominator: | ||
Basic - weighted average shares outstanding (shares) | 1,344.5 | 1,341.9 |
Effect of dilutive securities: | ||
Employee stock options (shares) | 8.5 | 4.7 |
Employee restricted stock units (shares) | 2.3 | 2.7 |
Other (shares) | 1 | 0.7 |
Diluted - weighted average shares outstanding (shares) | 1,356.4 | 1,350 |
Basic earnings per share (usd per share) | $ 0.57 | $ 0.36 |
Diluted earnings per share (usd per share) | $ 0.56 | $ 0.36 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (shares) | 1 | 7 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 69 | $ 70 |
Income tax benefits | (11) | (11) |
Total stock-based compensation expense, net of tax | 58 | 59 |
Cost of products sold | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 7 | 7 |
Research and development expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 8 | 8 |
Selling, general, and administrative expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 55 | 55 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 10 | 8 |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 41 | 50 |
Performance share units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 6 | 0 |
Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 11 | $ 12 |
Retirement Benefit Plans - Comp
Retirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - Pension plans - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
U.S. | ||
Net Periodic Benefit Cost | ||
Service cost | $ 25 | $ 27 |
Interest cost | 26 | 27 |
Expected return on plan assets | (57) | (61) |
Amortization of net actuarial loss | 16 | 18 |
Net periodic benefit cost | 10 | 11 |
Non-U.S. | ||
Net Periodic Benefit Cost | ||
Service cost | 16 | 17 |
Interest cost | 7 | 6 |
Expected return on plan assets | (16) | (14) |
Amortization of net actuarial loss | 5 | 6 |
Net periodic benefit cost | $ 12 | $ 15 |
Retirement Benefit Plans - Narr
Retirement Benefit Plans - Narrative (Details) $ in Millions | 3 Months Ended |
Jul. 31, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Incremental expense related to acceptance of voluntary early retirement packages | $ 97 |
Incremental expense related to acceptance of voluntary early retirement packages, amount related to defined contribution plans | 11 |
Incremental expense related to acceptance of voluntary early retirement packages, amount related to cash payments and administrative fees | 2 |
United States | Pension plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Incremental expense related to acceptance of voluntary early retirement packages, amount related to defined benefit plans | 73 |
United States | Post-retirement benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Incremental expense related to acceptance of voluntary early retirement packages, amount related to defined benefit plans | $ 11 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 51,602,000,000 | $ 50,872,000,000 |
Other comprehensive income (loss) | 274,000,000 | (217,000,000) |
Ending balance | 51,664,000,000 | 50,443,000,000 |
Total Accumulated Other Comprehensive (Loss) Income | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (3,485,000,000) | (3,560,000,000) |
Other comprehensive income (loss) before reclassifications | 230,000,000 | (196,000,000) |
Reclassifications | 46,000,000 | (26,000,000) |
Other comprehensive income (loss) | 276,000,000 | (222,000,000) |
Ending balance | (3,209,000,000) | (3,782,000,000) |
Unrealized Gain (Loss) on Investment Securities | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 92,000,000 | 0 |
Other comprehensive income (loss) before reclassifications | 14,000,000 | 125,000,000 |
Reclassifications | (2,000,000) | 0 |
Other comprehensive income (loss) | 12,000,000 | 125,000,000 |
Ending balance | 104,000,000 | 125,000,000 |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | 2,000,000 | 30,000,000 |
Reclassifications, tax expense (benefit) | 0 | 0 |
Cumulative Translation Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (519,000,000) | (2,210,000,000) |
Other comprehensive income (loss) before reclassifications | (353,000,000) | 1,112,000,000 |
Reclassifications | 0 | 0 |
Other comprehensive income (loss) | (353,000,000) | 1,112,000,000 |
Ending balance | (872,000,000) | (1,098,000,000) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | 0 | 4,000,000 |
Net Investment Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,458,000,000) | 236,000,000 |
Other comprehensive income (loss) before reclassifications | 424,000,000 | (1,112,000,000) |
Reclassifications | 0 | 0 |
Other comprehensive income (loss) | 424,000,000 | (1,112,000,000) |
Ending balance | (1,034,000,000) | (876,000,000) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | 0 | 0 |
Net Change in Retirement Obligations | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,347,000,000) | (1,852,000,000) |
Other comprehensive income (loss) before reclassifications | 1,000,000 | (12,000,000) |
Reclassifications | 18,000,000 | 15,000,000 |
Other comprehensive income (loss) | 19,000,000 | 3,000,000 |
Ending balance | (1,328,000,000) | (1,849,000,000) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | 1,000,000 | (5,000,000) |
Reclassifications, tax expense (benefit) | 2,000,000 | 4,000,000 |
Unrealized Gain (Loss) on Cash Flow Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (253,000,000) | 266,000,000 |
Other comprehensive income (loss) before reclassifications | 144,000,000 | (309,000,000) |
Reclassifications | 30,000,000 | (41,000,000) |
Other comprehensive income (loss) | 174,000,000 | (350,000,000) |
Ending balance | (79,000,000) | (84,000,000) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Other comprehensive income (loss) before reclassifications, tax expense (benefit) | 16,000,000 | (80,000,000) |
Reclassifications, tax expense (benefit) | $ (1,000,000) | $ 11,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Aug. 04, 2021claim | Nov. 28, 2018USD ($) | May 31, 2017claim | Jul. 30, 2021USD ($)landfillmanufacturersubsidiaryclaimant | Jul. 31, 2020USD ($) | Apr. 29, 2016USD ($)claim | Apr. 30, 2021USD ($) |
Loss Contingencies [Line Items] | |||||||
Certain litigation charges, net | $ 26 | $ (88) | |||||
Accrued litigation charges | $ 300 | $ 400 | |||||
Orrington, Maine chemical manufacturing facility | |||||||
Loss Contingencies [Line Items] | |||||||
Number of landfills requiring removal (in landfills) | landfill | 2 | ||||||
Number of landfills requiring capping (in landfills) | landfill | 3 | ||||||
Pelvic mesh | Product liability litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of subsidiaries (in subsidiaries) | subsidiary | 2 | ||||||
Number of manufacturers (in manufacturers) | manufacturer | 1 | ||||||
Amount of settlement received | $ 121 | ||||||
Number of claims settled (in claims) | claim | 5,000 | 11,000 | |||||
Number of claimants (in claimants) | claimant | 16,200 | ||||||
Pelvic mesh | Product liability litigation | Subsequent Event | |||||||
Loss Contingencies [Line Items] | |||||||
Number of claims settled (in claims) | claim | 15,900 | ||||||
Sasso | |||||||
Loss Contingencies [Line Items] | |||||||
Approximate amount of verdict returned against the Company | $ 112 |
Segment and Geographic Inform_3
Segment and Geographic Information - Narrative (Details) | 12 Months Ended |
Apr. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments (in segments) | 4 |
Number of reportable segments (in segments) | 4 |
Segment and Geographic Inform_4
Segment and Geographic Information - Income From Operations Before Income Taxes by Reportable Segment and Reconciliation to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Segment operating profit | $ 859 | $ 673 |
Other non-operating income, net | 111 | 82 |
Amortization of intangible assets | (436) | (440) |
Restructuring and associated costs | (11) | (53) |
Certain litigation charges, net | (26) | 88 |
Income before income taxes | 833 | 584 |
Cardiovascular | ||
Segment Reporting Information [Line Items] | ||
MCS impairments / costs | 726 | |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment operating profit | 3,170 | 1,840 |
Operating Segments | Cardiovascular | ||
Segment Reporting Information [Line Items] | ||
Segment operating profit | 1,161 | 759 |
Operating Segments | Medical Surgical | ||
Segment Reporting Information [Line Items] | ||
Segment operating profit | 914 | 455 |
Operating Segments | Neuroscience | ||
Segment Reporting Information [Line Items] | ||
Segment operating profit | 962 | 523 |
Operating Segments | Diabetes | ||
Segment Reporting Information [Line Items] | ||
Segment operating profit | 133 | 103 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Interest expense | (137) | (171) |
Other non-operating income, net | 111 | 82 |
Amortization of intangible assets | (436) | (440) |
Corporate | (449) | (365) |
Centralized distribution costs | (464) | (399) |
Restructuring and associated costs | (81) | (128) |
Acquisition-related items | (109) | 95 |
Certain litigation charges, net | (26) | 88 |
MCS impairments / costs | 726 | 0 |
Medical device regulations | $ (21) | $ (18) |
Segment and Geographic Inform_5
Segment and Geographic Information - Schedule of Net Sales to External Customers and Property, Plant, and Equipment, Net, by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 7,987 | $ 6,507 |
Ireland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 26 | 24 |
Total other countries, excluding Ireland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 7,961 | 6,483 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 4,101 | 3,351 |
Rest of world | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 3,860 | $ 3,132 |
Uncategorized Items - mdt-20210
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |