Delivers on commitments with strong growth in
Core Spine, Cardiac Surgery, Structural Heart, Cardiac Pacing, and
across many international markets; Diabetes increases double digits
as U.S. business returns to growth; Raises full year
guidance
DUBLIN, Feb. 20,
2024 /PRNewswire/ -- Medtronic plc (NYSE:MDT) today
announced financial results for its third quarter (Q3) of fiscal
year 2024 (FY24), which ended January 26,
2024.
Key Highlights
- Revenue of $8.1 billion increased
4.7% as reported and 4.6% organic
- GAAP diluted earnings per share (EPS) of $0.99; non-GAAP diluted EPS of $1.30
- Raises FY24 organic revenue growth and EPS guidance
- Company provides portfolio management update on Patient
Monitoring and Respiratory Interventions businesses
- Received U.S. FDA approval for PulseSelect™ pulsed field
ablation (PFA) system and Percept™ RC neurostimulator with
BrainSense™ technology; CE Mark for MiniMed™ 780G System with
Simplera Sync™ CGM and Micra™ AV2 and Micra™ VR2 leadless
pacemakers
Financial Results
Medtronic reported Q3 worldwide
revenue of $8.089 billion, an
increase of 4.7% as reported and 4.6% on an organic basis. The
company's organic revenue results reflect continued momentum across
the company, driven by strong growth in Diabetes, Core Spine,
Cardiac Surgery, Structural Heart, and Cardiac Pacing, as well as
strength in international markets. The organic revenue growth
comparison excludes:
- Revenue of $17 million and the
associated $2 million unfavorable
impact from foreign currency translation reported as Other,
stemming from business separations; and
- The favorable impact from foreign currency translation of
$70 million on the remaining
segments.
As reported, Q3 GAAP net income and diluted EPS were
$1.322 billion and $0.99, respectively, both representing increases
of 8%. As detailed in the financial schedules included at the end
of this release, Q3 non-GAAP net income of $1.728 billion and non-GAAP diluted EPS of
$1.30 were both flat. Included in
non-GAAP diluted EPS was an 11 cent,
or 8%, unfavorable impact from foreign currency translation.
"We're building momentum, with another quarter of solid
execution on our commitments. We continue to deliver durable
revenue growth, with particular strength in multiple businesses, as
well as in international markets as we expand access to our
innovative healthcare technologies around the globe," said
Geoff Martha, Medtronic chairman and
chief executive officer. "Our recent major product approvals –
including transformative products in the diabetes, cardiac rhythm
management, neuromodulation, hypertension, and pulsed field
ablation spaces – increase our confidence in driving reliable
growth over the coming quarters and years."
Cardiovascular Portfolio
The Cardiovascular Portfolio
includes the Cardiac Rhythm & Heart Failure (CRHF), Structural
Heart & Aortic (SHA), and Coronary & Peripheral Vascular
(CPV) divisions. Revenue of $2.929
billion increased 6.1% as reported and 5.1% organic, with a
low-double digit organic increase in SHA, mid-single digit organic
increases in CPV, and low-single digit increase in CRHF.
- CRHF results included low-single digit growth in Cardiac Rhythm
Management, driven by high-single digit growth in Cardiac Pacing
Therapies, including mid-teens growth in Micra™ transcatheter
pacing systems; Cardiac Ablation Solutions grew low-double digits
in international markets
- SHA driven by low-double digit growth in both Aortic and
Cardiac Surgery; Structural Heart grew high-single digits, with
double digit growth in Western
Europe and Japan on the
adoption of Evolut™ FX
- CPV delivered high-single digit growth in Coronary on growth in
guide catheters, balloons, and drug-eluting stents; Peripheral
Vascular Health grew mid-single digits, with low-double digit
growth in Vascular Embolization products, high-single digit growth
in drug-coated balloons
- Received U.S. FDA approval and CE Mark for PulseSelect™ pulsed
field ablation (PFA) system, with first commercial cases occurring
in fiscal Q4, and the Nitron CryoConsole™ system; Received CE Mark
for Micra™ AV2 and Micra™ VR2 next generation leadless
pacemakers
Neuroscience Portfolio
The Neuroscience Portfolio
includes the Cranial & Spinal Technologies (CST), Specialty
Therapies, and Neuromodulation divisions. Revenue of $2.355 billion increased 4.8% as reported and
4.3% organic, with a mid-single digit organic increase in CST,
low-single digit organic increases in Specialty Therapies and flat
organic results in Neuromodulation.
- CST overall performance was driven by continued adoption of the
company's AiBLE™ ecosystem, with high-single digit global and U.S.
growth in Core Spine, mid-teens global and U.S. growth in
Biologics, and mid-single digit growth in Neurosurgery
- Specialty Therapies results driven by mid-single digit growth
in Neurovascular, including double digit growth in flow diversion;
ENT grew mid-single digits with strength in power capital and
disposables and localized drug delivery sinus implants; Pelvic
Health results driven by mid-single digit growth in sacral
neuromodulation on the continued adoption of the InterStim X™
system, offset by a product line divestiture
- Neuromodulation results included low-single digit growth in
Brain Modulation, with mid-teens Western
Europe growth on launch of the Percept™ RC neurostimulator
with BrainSense™ technology; Pain Stim results were flat, with
low-single digit growth in the U.S.
Medical Surgical Portfolio
The Medical Surgical
Portfolio includes the Surgical & Endoscopy (SE) and the
Patient Monitoring & Respiratory Interventions (PMRI)
divisions. Revenue of $2.148 billion
increased 3.9% as reported and 2.9% organic, with low-single digit
organic increases in both SE and PMRI. Excluding sales of
ventilators, which declined mid-twenties, both Medical Surgical and
PMRI grew mid-single digits organic.
- SE results included mid-single digit growth in General Surgical
Technologies, with strength in wound management and hernia
products, low-single digit growth in Advanced Surgical
Technologies, and mid-single growth in Endoscopy
- PMRI results driven by mid-single digit growth in Patient
Monitoring, with high twenties growth in Nellcor™ pulse oximetry
monitors; Respiratory Interventions results declined mid-single
digit, with low-single digit growth in Airways offset by declines
in ventilator sales
Diabetes
Diabetes revenue of $640 million increased 12.3% as reported and
10.2% organic.
- U.S. grew mid-single digits, returning to growth on the
continued launch of the MiniMed™ 780G system; High-forties growth
in U.S. insulin pump sales with continued sequential increases in
customer base
- Non-U.S. Developed Markets grew low-double digits on continued
MiniMed™ 780G system adoption and increased CGM attachment
rates
- Received CE Mark for MiniMed™ 780G System with Simplera Sync™
CGM; limited European release expected in spring 2024 with phased
European commercial launch in summer 2024
Patient Monitoring and Respiratory Interventions (PMRI)
Update
Medtronic has decided to exit its ventilator product
line and retain and combine the remaining PMRI businesses into one
business unit called Acute Care and Monitoring (ACM). Exiting the
increasingly unprofitable ventilator product line and combining the
remaining businesses allows for increased investment in ACM with a
focus on profitable growth. Given this increased investment along
with an improved competitive landscape, the company has strong
conviction in driving durable category leadership in this newly
combined business. Medtronic will continue to honor existing
ventilator contracts to serve the needs of its customers and their
patients, and expects that existing manufacturers, who today
account for the majority of the market, can meet customer demand
for new ventilators moving forward.
Guidance
The company today raised its FY24 revenue
growth and EPS guidance.
The company increased its FY24 organic revenue growth guidance
from the prior 4.75% to the new range of 4.75% to 5%. The organic
revenue growth guidance excludes the impact of foreign currency and
revenue related to business separations reported as Other.
Including Other revenue and the impact of foreign currency, if
recent foreign currency exchange rates hold, FY24 revenue growth on
a reported basis would be in the range of 2.9% to 3.3%.
The company increased its FY24 diluted non-GAAP EPS guidance
from the prior range of $5.13 to
$5.19 to the new range of
$5.19 to $5.21, a 4 cent
increase at the midpoint that is reflective of the company's third
quarter outperformance.
"In addition to delivering durable sales growth, we also drove
improvements to our margins, as our cost efficiency programs helped
to offset the impact of inflation, tax, and currency, contributing
to our EPS and cash flow performance in the quarter," said
Karen Parkhill, Medtronic EVP &
chief financial officer. "Based on our year-to-date performance,
including another solid financial performance this quarter, we are
raising our full-year guidance on both the top and bottom lines. We
remain focused on restoring our earnings power and creating value
for our shareholders."
Video Webcast Information
Medtronic will host a video
webcast today, February 20, at
8:00 a.m. EST (7:00 a.m. CST) to provide information about its
businesses for the public, investors, analysts, and news media.
This webcast can be accessed by clicking on the Events icon at
investorrelations.medtronic.com, and this earnings release will be
archived at news.medtronic.com. Within 24 hours of the webcast, a
replay of the webcast and transcript of the company's prepared
remarks will be available by clicking on the Events icon at
investorrelations.medtronic.com.
Medtronic plans to report its FY24 fourth quarter results on
Thursday, May 23, 2024. For fiscal
year 2025, Medtronic plans to report its first, second, third, and
fourth quarter results on Tuesday, August
20, 2024, November 19, 2024,
February 18, 2025, and Thursday, May 22, 2025, respectively.
Confirmation and additional details will be provided closer to the
specific event.
Financial Schedules and Earnings Presentation
The
third quarter financial schedules and non-GAAP reconciliations can
be viewed by clicking on the Investor Events link at
investorrelations.medtronic.com. To view a printable PDF of the
financial schedules and non-GAAP reconciliations, click here. To
view the third quarter earnings presentation, click here.
MEDTRONIC
PLC
WORLD WIDE
REVENUE(1)
(Unaudited)
|
|
|
THIRD
QUARTER
|
|
|
YEAR-TO-DATE
|
|
REPORTED
|
|
|
|
ORGANIC
|
|
|
REPORTED
|
|
|
|
ORGANIC
|
(in
millions)
|
FY24
|
|
FY23
|
|
Growth
|
|
Currency
Impact(2)
|
|
Adjusted
FY24
|
|
Adjusted
FY23
|
|
Growth
|
|
|
FY24
|
|
FY23
|
|
Growth
|
|
Currency
Impact(2)
|
|
Adjusted
FY24
|
|
Adjusted
FY23
|
|
Growth
|
Cardiovascular
|
$
2,929
|
|
$
2,760
|
|
6.1 %
|
|
$
28
|
|
$
2,901
|
|
$
2,760
|
|
5.1 %
|
|
|
$
8,702
|
|
$
8,219
|
|
5.9 %
|
|
$
40
|
|
$
8,662
|
|
$
8,219
|
|
5.4 %
|
Cardiac Rhythm &
Heart Failure
|
1,470
|
|
1,419
|
|
3.6
|
|
16
|
|
1,454
|
|
1,419
|
|
2.5
|
|
|
4,408
|
|
4,217
|
|
4.5
|
|
27
|
|
4,381
|
|
4,217
|
|
3.9
|
Structural Heart &
Aortic
|
843
|
|
760
|
|
10.9
|
|
10
|
|
833
|
|
760
|
|
9.6
|
|
|
2,475
|
|
2,259
|
|
9.6
|
|
17
|
|
2,458
|
|
2,259
|
|
8.8
|
Coronary &
Peripheral Vascular
|
616
|
|
581
|
|
6.0
|
|
2
|
|
614
|
|
581
|
|
5.7
|
|
|
1,818
|
|
1,744
|
|
4.2
|
|
(3)
|
|
1,821
|
|
1,744
|
|
4.4
|
Neuroscience
|
2,355
|
|
2,248
|
|
4.8
|
|
10
|
|
2,345
|
|
2,248
|
|
4.3
|
|
|
6,861
|
|
6,549
|
|
4.8
|
|
5
|
|
6,856
|
|
6,549
|
|
4.7
|
Cranial & Spinal
Technologies
|
1,204
|
|
1,128
|
|
6.7
|
|
3
|
|
1,201
|
|
1,128
|
|
6.5
|
|
|
3,465
|
|
3,253
|
|
6.5
|
|
—
|
|
3,465
|
|
3,253
|
|
6.5
|
Specialty
Therapies
|
726
|
|
699
|
|
3.9
|
|
3
|
|
723
|
|
699
|
|
3.4
|
|
|
2,126
|
|
2,052
|
|
3.6
|
|
(3)
|
|
2,129
|
|
2,052
|
|
3.8
|
Neuromodulation
|
425
|
|
420
|
|
1.2
|
|
4
|
|
421
|
|
420
|
|
0.2
|
|
|
1,270
|
|
1,244
|
|
2.1
|
|
9
|
|
1,261
|
|
1,244
|
|
1.4
|
Medical
Surgical
|
2,148
|
|
2,068
|
|
3.9
|
|
20
|
|
2,128
|
|
2,068
|
|
2.9
|
|
|
6,329
|
|
6,003
|
|
5.4
|
|
36
|
|
6,293
|
|
6,003
|
|
4.8
|
Surgical &
Endoscopy
|
1,616
|
|
1,546
|
|
4.5
|
|
18
|
|
1,598
|
|
1,546
|
|
3.4
|
|
|
4,803
|
|
4,514
|
|
6.4
|
|
35
|
|
4,768
|
|
4,514
|
|
5.6
|
Patient Monitoring
& Respiratory Interventions
|
532
|
|
522
|
|
1.9
|
|
2
|
|
530
|
|
522
|
|
1.5
|
|
|
1,526
|
|
1,489
|
|
2.5
|
|
1
|
|
1,525
|
|
1,489
|
|
2.4
|
Diabetes
|
640
|
|
570
|
|
12.3
|
|
12
|
|
628
|
|
570
|
|
10.2
|
|
|
1,829
|
|
1,667
|
|
9.7
|
|
32
|
|
1,797
|
|
1,667
|
|
7.8
|
Other(3)
|
17
|
|
81
|
|
(79.0)
|
|
(2)
|
|
—
|
|
—
|
|
—
|
|
|
54
|
|
243
|
|
(77.8)
|
|
(7)
|
|
—
|
|
—
|
|
—
|
TOTAL
|
$
8,089
|
|
$
7,727
|
|
4.7 %
|
|
$
68
|
|
$
8,001
|
|
$
7,646
|
|
4.6 %
|
|
|
$
23,775
|
|
$
22,682
|
|
4.8 %
|
|
$ 106
|
|
$
23,607
|
|
$
22,439
|
|
5.2 %
|
|
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million and,
therefore, may not sum.
|
(2)
|
The currency impact to
revenue measures the change in revenue between current and prior
year periods using constant exchange rates.
|
(3)
|
Includes inorganic
revenue from the divested Renal Care Solutions business and
Transition Manufacturing Agreements from previously divested
businesses.
|
MEDTRONIC
PLC
U.S.(1)(2) REVENUE
(Unaudited)
|
|
|
THIRD
QUARTER
|
|
|
YEAR-TO-DATE
|
|
REPORTED
|
|
ORGANIC
|
|
|
REPORTED
|
|
ORGANIC
|
(in
millions)
|
FY24
|
|
FY23
|
|
Growth
|
|
Adjusted
FY24
|
|
Adjusted
FY23
|
|
Growth
|
|
|
FY24
|
|
FY23
|
|
Growth
|
|
Adjusted
FY24
|
|
Adjusted
FY23
|
|
Growth
|
Cardiovascular
|
$
1,373
|
|
$
1,363
|
|
0.7 %
|
|
$
1,373
|
|
$
1,363
|
|
0.7 %
|
|
|
$
4,149
|
|
$
4,059
|
|
2.2 %
|
|
$
4,149
|
|
$
4,059
|
|
2.2 %
|
Cardiac Rhythm &
Heart Failure
|
745
|
|
753
|
|
(1.1)
|
|
745
|
|
753
|
|
(1.1)
|
|
|
2,247
|
|
2,233
|
|
0.6
|
|
2,247
|
|
2,233
|
|
0.6
|
Structural Heart &
Aortic
|
363
|
|
337
|
|
7.7
|
|
363
|
|
337
|
|
7.7
|
|
|
1,087
|
|
997
|
|
9.0
|
|
1,087
|
|
997
|
|
9.0
|
Coronary &
Peripheral Vascular
|
265
|
|
274
|
|
(3.3)
|
|
265
|
|
274
|
|
(3.3)
|
|
|
816
|
|
829
|
|
(1.6)
|
|
816
|
|
829
|
|
(1.6)
|
Neuroscience
|
1,556
|
|
1,507
|
|
3.3
|
|
1,556
|
|
1,507
|
|
3.3
|
|
|
4,614
|
|
4,437
|
|
4.0
|
|
4,614
|
|
4,437
|
|
4.0
|
Cranial & Spinal
Technologies
|
875
|
|
824
|
|
6.2
|
|
875
|
|
824
|
|
6.2
|
|
|
2,560
|
|
2,404
|
|
6.5
|
|
2,560
|
|
2,404
|
|
6.5
|
Specialty
Therapies
|
407
|
|
402
|
|
1.2
|
|
407
|
|
402
|
|
1.2
|
|
|
1,202
|
|
1,186
|
|
1.3
|
|
1,202
|
|
1,186
|
|
1.3
|
Neuromodulation
|
275
|
|
281
|
|
(2.1)
|
|
275
|
|
281
|
|
(2.1)
|
|
|
852
|
|
848
|
|
0.5
|
|
852
|
|
848
|
|
0.5
|
Medical
Surgical
|
960
|
|
959
|
|
0.1
|
|
960
|
|
959
|
|
0.1
|
|
|
2,805
|
|
2,685
|
|
4.5
|
|
2,805
|
|
2,685
|
|
4.5
|
Surgical &
Endoscopy
|
663
|
|
674
|
|
(1.6)
|
|
663
|
|
674
|
|
(1.6)
|
|
|
1,971
|
|
1,888
|
|
4.4
|
|
1,971
|
|
1,888
|
|
4.4
|
Patient Monitoring
& Respiratory Interventions
|
297
|
|
285
|
|
4.2
|
|
297
|
|
285
|
|
4.2
|
|
|
834
|
|
797
|
|
4.6
|
|
834
|
|
797
|
|
4.6
|
Diabetes
|
224
|
|
215
|
|
4.2
|
|
224
|
|
215
|
|
4.2
|
|
|
629
|
|
650
|
|
(3.2)
|
|
629
|
|
650
|
|
(3.2)
|
Other(3)
|
7
|
|
17
|
|
(58.8)
|
|
—
|
|
—
|
|
—
|
|
|
23
|
|
66
|
|
(65.2)
|
|
—
|
|
—
|
|
—
|
TOTAL
|
$
4,120
|
|
$
4,062
|
|
1.4 %
|
|
$
4,113
|
|
$
4,045
|
|
1.7 %
|
|
|
$
12,219
|
|
$
11,897
|
|
2.7 %
|
|
$
12,197
|
|
$
11,831
|
|
3.1 %
|
|
|
(1)
|
U.S. includes the
United States and U.S. territories.
|
(2)
|
The data in this
schedule has been intentionally rounded to the nearest million and,
therefore, may not sum.
|
(3)
|
Includes inorganic
revenue from the divested Renal Care Solutions business and
Transition Manufacturing Agreements from previously divested
businesses.
|
MEDTRONIC
PLC
WORLD WIDE REVENUE:
GEOGRAPHIC (1)(2)
(Unaudited)
|
|
|
THIRD
QUARTER
|
|
|
YEAR-TO-DATE
|
|
REPORTED
|
|
|
|
ORGANIC
|
|
|
REPORTED
|
|
|
|
ORGANIC
|
(in
millions)
|
FY24
|
|
FY23
|
|
Growth
|
|
Currency
Impact(3)
|
|
Adjusted
FY24
|
|
Adjusted
FY23
|
|
Growth
|
|
|
FY24
|
|
FY23
|
|
Growth
|
|
Currency
Impact(3)
|
|
Adjusted
FY24
|
|
Adjusted
FY23
|
|
Growth
|
U.S.
|
$
1,373
|
|
$
1,363
|
|
0.7 %
|
|
$
—
|
|
$
1,373
|
|
$
1,363
|
|
0.7 %
|
|
|
$
4,149
|
|
$
4,059
|
|
2.2 %
|
|
$
—
|
|
$
4,149
|
|
$ 4,059
|
|
2.2 %
|
Non-U.S.
Developed
|
950
|
|
859
|
|
10.6
|
|
30
|
|
920
|
|
859
|
|
7.1
|
|
|
2,818
|
|
2,553
|
|
10.4
|
|
75
|
|
2,743
|
|
2,553
|
|
7.4
|
Emerging
Markets
|
607
|
|
538
|
|
12.8
|
|
(2)
|
|
609
|
|
538
|
|
13.2
|
|
|
1,734
|
|
1,607
|
|
7.9
|
|
(34)
|
|
1,768
|
|
1,607
|
|
10.0
|
Cardiovascular
|
2,929
|
|
2,760
|
|
6.1
|
|
28
|
|
2,901
|
|
2,760
|
|
5.1
|
|
|
8,702
|
|
8,219
|
|
5.9
|
|
40
|
|
8,662
|
|
8,219
|
|
5.4
|
U.S.
|
1,556
|
|
1,507
|
|
3.3
|
|
—
|
|
1,556
|
|
1,507
|
|
3.3
|
|
|
4,614
|
|
4,437
|
|
4.0
|
|
—
|
|
4,614
|
|
4,437
|
|
4.0
|
Non-U.S.
Developed
|
442
|
|
401
|
|
10.2
|
|
10
|
|
432
|
|
401
|
|
7.7
|
|
|
1,257
|
|
1,189
|
|
5.7
|
|
20
|
|
1,237
|
|
1,189
|
|
4.0
|
Emerging
Markets
|
357
|
|
341
|
|
4.7
|
|
—
|
|
357
|
|
341
|
|
4.7
|
|
|
991
|
|
923
|
|
7.4
|
|
(15)
|
|
1,006
|
|
923
|
|
9.0
|
Neuroscience
|
2,355
|
|
2,248
|
|
4.8
|
|
10
|
|
2,345
|
|
2,248
|
|
4.3
|
|
|
6,861
|
|
6,549
|
|
4.8
|
|
5
|
|
6,856
|
|
6,549
|
|
4.7
|
U.S.
|
960
|
|
959
|
|
0.1
|
|
—
|
|
960
|
|
959
|
|
0.1
|
|
|
2,805
|
|
2,685
|
|
4.5
|
|
—
|
|
2,805
|
|
2,685
|
|
4.5
|
Non-U.S.
Developed
|
758
|
|
725
|
|
4.6
|
|
15
|
|
743
|
|
725
|
|
2.5
|
|
|
2,270
|
|
2,144
|
|
5.9
|
|
36
|
|
2,234
|
|
2,144
|
|
4.2
|
Emerging
Markets
|
429
|
|
384
|
|
11.7
|
|
5
|
|
424
|
|
384
|
|
10.4
|
|
|
1,254
|
|
1,174
|
|
6.8
|
|
—
|
|
1,254
|
|
1,174
|
|
6.8
|
Medical
Surgical
|
2,148
|
|
2,068
|
|
3.9
|
|
20
|
|
2,128
|
|
2,068
|
|
2.9
|
|
|
6,329
|
|
6,003
|
|
5.4
|
|
36
|
|
6,293
|
|
6,003
|
|
4.8
|
U.S.
|
224
|
|
215
|
|
4.2
|
|
—
|
|
224
|
|
215
|
|
4.2
|
|
|
629
|
|
650
|
|
(3.2)
|
|
—
|
|
629
|
|
650
|
|
(3.2)
|
Non-U.S.
Developed
|
322
|
|
274
|
|
17.5
|
|
13
|
|
309
|
|
274
|
|
12.8
|
|
|
947
|
|
792
|
|
19.6
|
|
36
|
|
911
|
|
792
|
|
15.0
|
Emerging
Markets
|
94
|
|
80
|
|
17.5
|
|
(1)
|
|
95
|
|
80
|
|
18.8
|
|
|
253
|
|
226
|
|
11.9
|
|
(4)
|
|
257
|
|
226
|
|
13.7
|
Diabetes
|
640
|
|
570
|
|
12.3
|
|
12
|
|
628
|
|
570
|
|
10.2
|
|
|
1,829
|
|
1,667
|
|
9.7
|
|
32
|
|
1,797
|
|
1,667
|
|
7.8
|
U.S.
|
7
|
|
17
|
|
(58.8)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
23
|
|
66
|
|
(65.2)
|
|
—
|
|
—
|
|
—
|
|
—
|
Non-U.S.
Developed
|
2
|
|
36
|
|
(94.4)
|
|
(1)
|
|
—
|
|
—
|
|
—
|
|
|
14
|
|
101
|
|
(86.1)
|
|
(4)
|
|
—
|
|
—
|
|
—
|
Emerging
Markets
|
8
|
|
28
|
|
(71.4)
|
|
(1)
|
|
—
|
|
—
|
|
—
|
|
|
18
|
|
76
|
|
(76.3)
|
|
(3)
|
|
—
|
|
—
|
|
—
|
Other(4)
|
17
|
|
81
|
|
(79.0)
|
|
(2)
|
|
—
|
|
—
|
|
—
|
|
|
54
|
|
243
|
|
(77.8)
|
|
(7)
|
|
—
|
|
—
|
|
—
|
U.S.
|
4,120
|
|
4,062
|
|
1.4
|
|
—
|
|
4,113
|
|
4,045
|
|
1.7
|
|
|
12,219
|
|
11,897
|
|
2.7
|
|
—
|
|
12,197
|
|
11,831
|
|
3.1
|
Non-U.S.
Developed
|
2,473
|
|
2,294
|
|
7.8
|
|
67
|
|
2,403
|
|
2,258
|
|
6.4
|
|
|
7,305
|
|
6,779
|
|
7.8
|
|
162
|
|
7,125
|
|
6,678
|
|
6.7
|
Emerging
Markets
|
1,495
|
|
1,371
|
|
9.0
|
|
2
|
|
1,484
|
|
1,343
|
|
10.5
|
|
|
4,251
|
|
4,006
|
|
6.1
|
|
(56)
|
|
4,285
|
|
3,929
|
|
9.1
|
TOTAL
|
$
8,089
|
|
$
7,727
|
|
4.7 %
|
|
$
68
|
|
$
8,001
|
|
$
7,646
|
|
4.6 %
|
|
|
$
23,775
|
|
$
22,682
|
|
4.8 %
|
|
$
106
|
|
$
23,607
|
|
$
22,439
|
|
5.2 %
|
|
|
(1)
|
U.S. includes the
United States and U.S. territories. Non-U.S. developed markets
include Japan, Australia, New Zealand, Korea, Canada, and the
countries within Western Europe. Emerging Markets include the
countries of the Middle East, Africa, Latin America, Eastern
Europe, and the countries of Asia that are not included in the
non-U.S. developed markets, as previously defined.
|
(2)
|
The data in this
schedule has been intentionally rounded to the nearest million and,
therefore, may not sum.
|
(3)
|
The currency impact to
revenue measures the change in revenue between current and prior
year periods using constant exchange rates.
|
(4)
|
Includes inorganic
revenue from the divested Renal Care Solutions business and
Transition Manufacturing Agreements from previously divested
businesses.
|
MEDTRONIC
PLC
CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
|
|
|
Three months ended
|
|
Nine months
ended
|
(in millions, except
per share data)
|
January 26,
2024
|
|
January 27,
2023
|
|
January 26,
2024
|
|
January 27,
2023
|
Net
sales
|
$
8,089
|
|
$
7,727
|
|
$
23,775
|
|
$
22,682
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of products sold,
excluding amortization of intangible assets
|
2,782
|
|
2,689
|
|
8,172
|
|
7,740
|
Research and
development expense
|
695
|
|
688
|
|
2,060
|
|
2,055
|
Selling, general, and
administrative expense
|
2,673
|
|
2,615
|
|
7,971
|
|
7,799
|
Amortization of
intangible assets
|
419
|
|
431
|
|
1,274
|
|
1,275
|
Restructuring charges,
net
|
20
|
|
38
|
|
114
|
|
81
|
Certain litigation
charges
|
—
|
|
—
|
|
105
|
|
—
|
Other operating
expense (income), net
|
17
|
|
(125)
|
|
(13)
|
|
(187)
|
Operating
profit
|
1,483
|
|
1,392
|
|
4,091
|
|
3,920
|
Other non-operating
income, net
|
(177)
|
|
(149)
|
|
(407)
|
|
(342)
|
Interest expense,
net
|
188
|
|
167
|
|
517
|
|
449
|
Income before income
taxes
|
1,472
|
|
1,375
|
|
3,982
|
|
3,813
|
Income tax
provision
|
135
|
|
146
|
|
936
|
|
1,218
|
Net
income
|
1,337
|
|
1,229
|
|
3,045
|
|
2,595
|
Net income
attributable to noncontrolling interests
|
(15)
|
|
(6)
|
|
(23)
|
|
(17)
|
Net income
attributable to Medtronic
|
$
1,322
|
|
$
1,222
|
|
$
3,022
|
|
$
2,579
|
Basic earnings per
share
|
$
0.99
|
|
$
0.92
|
|
$
2.27
|
|
$
1.94
|
Diluted earnings per
share
|
$
0.99
|
|
$
0.92
|
|
$
2.27
|
|
$
1.94
|
Basic weighted
average shares outstanding
|
1,329.7
|
|
1,330.2
|
|
1,330.1
|
|
1,329.6
|
Diluted weighted
average shares outstanding
|
1,331.7
|
|
1,332.0
|
|
1,332.4
|
|
1,332.8
|
|
The data in the
schedule above has been intentionally rounded to the nearest
million, and therefore, the quarterly amounts may not sum to the
fiscal year-to-date amounts.
|
MEDTRONIC
PLC
GAAP TO NON-GAAP
RECONCILIATIONS(1)
(Unaudited)
|
|
|
Three months ended
January 26, 2024
|
(in millions, except
per share data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to
Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
GAAP
|
$
8,089
|
|
$
2,782
|
|
65.6 %
|
|
$ 1,483
|
|
18.3 %
|
|
$
1,472
|
|
$
1,322
|
|
$ 0.99
|
|
9.2 %
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
—
|
|
—
|
|
—
|
|
419
|
|
5.2
|
|
419
|
|
354
|
|
0.27
|
|
15.5
|
Restructuring and
associated costs (2)
|
—
|
|
(12)
|
|
0.1
|
|
55
|
|
0.7
|
|
55
|
|
46
|
|
0.03
|
|
16.4
|
Acquisition and
divestiture-related items (3)
|
—
|
|
(12)
|
|
0.1
|
|
58
|
|
0.7
|
|
58
|
|
52
|
|
0.04
|
|
10.3
|
(Gain)/loss on
minority investments (4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
24
|
|
24
|
|
0.02
|
|
—
|
Medical device
regulations (5)
|
—
|
|
(18)
|
|
0.2
|
|
26
|
|
0.3
|
|
26
|
|
21
|
|
0.02
|
|
19.2
|
Certain tax
adjustments, net (6)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(92)
|
|
(0.07)
|
|
—
|
Non-GAAP
|
$
8,089
|
|
$
2,740
|
|
66.1 %
|
|
$ 2,042
|
|
25.2 %
|
|
$
2,055
|
|
$
1,728
|
|
$ 1.30
|
|
15.2 %
|
Currency
impact
|
(68)
|
|
(66)
|
|
0.6
|
|
164
|
|
2.3
|
|
|
|
|
|
0.11
|
|
|
Currency
Adjusted
|
$
8,021
|
|
$
2,674
|
|
66.7 %
|
|
$ 2,206
|
|
27.5 %
|
|
|
|
|
|
$ 1.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
January 27, 2023
|
(in millions, except
per share data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to
Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
GAAP
|
$
7,727
|
|
$
2,689
|
|
65.2 %
|
|
$ 1,392
|
|
18.0 %
|
|
$
1,375
|
|
$
1,222
|
|
$ 0.92
|
|
10.6 %
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
—
|
|
—
|
|
—
|
|
431
|
|
5.6
|
|
431
|
|
367
|
|
0.28
|
|
15.1
|
Restructuring and
associated costs (2)
|
—
|
|
(26)
|
|
0.3
|
|
104
|
|
1.3
|
|
104
|
|
83
|
|
0.06
|
|
20.2
|
Acquisition and
divestiture-related items (3)
|
—
|
|
(9)
|
|
0.1
|
|
34
|
|
0.4
|
|
34
|
|
29
|
|
0.03
|
|
26.7
|
(Gain)/loss on
minority investments (4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(8)
|
|
(8)
|
|
(0.01)
|
|
—
|
Medical device
regulations (5)
|
—
|
|
(23)
|
|
0.3
|
|
37
|
|
0.5
|
|
37
|
|
31
|
|
0.02
|
|
18.9
|
Certain tax
adjustments, net
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
—
|
|
—
|
Non-GAAP
|
$
7,727
|
|
$
2,630
|
|
66.0 %
|
|
$ 1,998
|
|
25.9 %
|
|
$
1,973
|
|
$
1,727
|
|
$ 1.30
|
|
12.1 %
|
|
See description of
non-GAAP financial measures contained in the press release dated
February 20, 2024.
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million or
$0.01 for EPS figures, and, therefore, may not sum.
|
(2)
|
Associated costs
include costs incurred as a direct result of the restructuring
program, such as salaries for employees supporting the program,
consulting expenses, and asset write-offs.
|
(3)
|
The charges primarily
include business combination costs, changes in fair value of
contingent consideration, and charges related to the potential
separation of the Patient Monitoring and Respiratory Interventions
businesses within our Medical Surgical Portfolio.
|
(4)
|
We exclude unrealized
and realized gains and losses on our minority investments as we do
not believe that these components of income or expense have a
direct correlation to our ongoing or future business
operations.
|
(5)
|
The charges represent
incremental costs of complying with the new European Union (E.U.)
medical device regulations for previously registered products and
primarily include charges for contractors supporting the project
and other direct third-party expenses. We consider these costs to
be duplicative of previously incurred costs and/or one-time costs,
which are limited to a specific time period.
|
(6)
|
The net tax benefit
primarily relates to a change in a Swiss Cantonal tax rate
associated with previously established deferred tax assets from
intercompany intellectual property transactions and the step up in
tax basis for Swiss Cantonal purposes.
|
MEDTRONIC
PLC
GAAP TO NON-GAAP
RECONCILIATIONS(1)
(Unaudited)
|
|
|
Nine months ended
January 26, 2024
|
(in millions, except
per share data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to
Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
GAAP
|
$
23,775
|
|
$
8,172
|
|
65.6 %
|
|
$ 4,091
|
|
17.2 %
|
|
$
3,982
|
|
$
3,022
|
|
$ 2.27
|
|
23.5 %
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
—
|
|
—
|
|
—
|
|
1,274
|
|
5.4
|
|
1,274
|
|
1,078
|
|
0.81
|
|
15.4
|
Restructuring and
associated costs (2)
|
—
|
|
(43)
|
|
0.2
|
|
237
|
|
1.0
|
|
237
|
|
198
|
|
0.15
|
|
16.5
|
Acquisition and
divestiture-related items (3)
|
—
|
|
(24)
|
|
0.1
|
|
165
|
|
0.7
|
|
165
|
|
149
|
|
0.11
|
|
9.7
|
Certain litigation
charges
|
—
|
|
—
|
|
—
|
|
105
|
|
0.4
|
|
105
|
|
81
|
|
0.06
|
|
22.9
|
(Gain)/loss on
minority investments (4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
113
|
|
109
|
|
0.08
|
|
4.4
|
Medical device
regulations (5)
|
—
|
|
(60)
|
|
0.3
|
|
88
|
|
0.4
|
|
88
|
|
70
|
|
0.05
|
|
20.5
|
Certain tax
adjustments, net (6)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
282
|
|
0.21
|
|
—
|
Non-GAAP
|
$
23,775
|
|
$
8,046
|
|
66.2 %
|
|
$ 5,961
|
|
25.1 %
|
|
$
5,965
|
|
$
4,988
|
|
$ 3.74
|
|
16.0 %
|
Currency
impact
|
(106)
|
|
(132)
|
|
0.4
|
|
406
|
|
1.8
|
|
|
|
|
|
0.27
|
|
|
Currency
Adjusted
|
$
23,669
|
|
$
7,914
|
|
66.6 %
|
|
$ 6,367
|
|
26.9 %
|
|
|
|
|
|
$ 4.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
January 27, 2023
|
(in millions, except
per share data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to
Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
GAAP
|
$
22,682
|
|
$
7,740
|
|
65.9 %
|
|
$ 3,920
|
|
17.3 %
|
|
$
3,813
|
|
$
2,579
|
|
$ 1.94
|
|
31.9 %
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
—
|
|
—
|
|
—
|
|
1,275
|
|
5.6
|
|
1,275
|
|
1,082
|
|
0.81
|
|
15.2
|
Restructuring and
associated costs (2)
|
—
|
|
(67)
|
|
0.3
|
|
275
|
|
1.2
|
|
275
|
|
219
|
|
0.16
|
|
20.0
|
Acquisition and
divestiture-related items (3)
|
—
|
|
(59)
|
|
0.3
|
|
207
|
|
0.9
|
|
207
|
|
186
|
|
0.14
|
|
32.3
|
(Gain)/loss on
minority investments (4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(23)
|
|
(23)
|
|
(0.02)
|
|
—
|
Medical device
regulations (5)
|
—
|
|
(62)
|
|
0.3
|
|
107
|
|
0.5
|
|
107
|
|
87
|
|
0.07
|
|
18.7
|
Debt redemption
premium and other charges (7)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
53
|
|
42
|
|
0.03
|
|
20.8
|
Certain tax
adjustments, net (8)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
783
|
|
0.59
|
|
—
|
Non-GAAP
|
$
22,682
|
|
$
7,551
|
|
66.7 %
|
|
$ 5,783
|
|
25.5 %
|
|
$
5,706
|
|
$
4,953
|
|
$ 3.72
|
|
12.9 %
|
|
See description of
non-GAAP financial measures contained in the press release dated
February 20, 2024.
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million or
$0.01 for EPS figures, and, therefore, may not sum.
|
(2)
|
Associated costs
include costs incurred as a direct result of the restructuring
program, such as salaries for employees supporting the program,
consulting expenses, and asset write-offs.
|
(3)
|
The charges primarily
include business combination costs, changes in fair value of
contingent consideration, and charges related to the potential
separation of the Patient Monitoring and Respiratory Interventions
businesses within our Medical Surgical Portfolio.
|
(4)
|
We exclude unrealized
and realized gains and losses on our minority investments as we do
not believe that these components of income or expense have a
direct correlation to our ongoing or future business
operations.
|
(5)
|
The charges represent
incremental costs of complying with the new European Union medical
device regulations for previously registered products and primarily
include charges for contractors supporting the project and other
direct third-party expenses. We consider these costs to be
duplicative of previously incurred costs and/or one-time costs,
which are limited to a specific period.
|
(6)
|
The net charge
primarily relates to an income tax reserve adjustment associated
with the June 1, 2023, Israeli Central-Lod District Court
decision and the establishment of a valuation allowance against
certain net operating losses which were partially offset by a
benefit from the change in a Swiss Cantonal tax rate associated
with previously established deferred tax assets from intercompany
intellectual property transactions and the step up in tax basis for
Swiss Cantonal purposes.
|
(7)
|
The charges relate to
the early redemption of approximately $2.3 billion of debt and were
recorded within interest expense, net within the consolidated
statements of income.
|
(8)
|
The charge primarily
relates to a $764 million reserve adjustment that was a direct
result of the U.S. Tax Court opinion, issued on August 18, 2022, on
the previously disclosed litigation regarding the allocation of
income between Medtronic, Inc. and its wholly owned subsidiary
operating in Puerto Rico.
|
MEDTRONIC
PLC
GAAP TO NON-GAAP
RECONCILIATIONS(1)
(Unaudited)
|
|
|
Three months ended
January 26, 2024
|
(in
millions)
|
Net
Sales
|
|
SG&A
Expense
|
|
SG&A
Expense as
a % of Net
Sales
|
|
R&D
Expense
|
|
R&D
Expense
as a % of
Net Sales
|
|
Other
Operating
(Income)
Expense,
net
|
|
Other
Operating
(Inc.)/Exp.,
net as a % of
Net Sales
|
|
Other Non-
Operating
Income, net
|
GAAP
|
$ 8,089
|
|
$ 2,673
|
|
33.0 %
|
|
$ 695
|
|
8.6 %
|
|
$
17
|
|
0.2 %
|
|
$
(177)
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
associated costs (2)
|
—
|
|
(23)
|
|
(0.3)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Acquisition and
divestiture-related items (3)
|
—
|
|
(24)
|
|
(0.3)
|
|
—
|
|
—
|
|
(23)
|
|
(0.3)
|
|
—
|
Medical device
regulations (4)
|
—
|
|
—
|
|
—
|
|
(8)
|
|
(0.1)
|
|
—
|
|
—
|
|
—
|
(Gain)/loss on
minority investments (5)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(24)
|
Non-GAAP
|
$ 8,089
|
|
$ 2,625
|
|
32.5 %
|
|
$ 687
|
|
8.5 %
|
|
$
(6)
|
|
(0.1) %
|
|
$
(201)
|
Currency
impact
|
(68)
|
|
(25)
|
|
(0.1)
|
|
—
|
|
0.1
|
|
(142)
|
|
(1.7)
|
|
2
|
Currency
Adjusted
|
$ 8,021
|
|
$ 2,600
|
|
32.4 %
|
|
$ 687
|
|
8.6 %
|
|
$
(148)
|
|
(1.8) %
|
|
$
(199)
|
|
Nine months ended
January 26, 2024
|
(in
millions)
|
Net
Sales
|
|
SG&A
Expense
|
|
SG&A
Expense as
a % of Net
Sales
|
|
R&D
Expense
|
|
R&D
Expense
as a % of
Net Sales
|
|
Other
Operating
(Income)
Expense,
net
|
|
Other
Operating
(Inc.)/Exp.,
net as a % of
Net Sales
|
|
Other Non-
Operating
Income, net
|
GAAP
|
$
23,775
|
|
$ 7,971
|
|
33.5 %
|
|
$
2,060
|
|
8.7 %
|
|
$
(13)
|
|
(0.1) %
|
|
$
(407)
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
associated costs (2)
|
—
|
|
(80)
|
|
(0.3)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Acquisition and
divestiture-related items (3)
|
—
|
|
(66)
|
|
(0.3)
|
|
—
|
|
—
|
|
(76)
|
|
(0.3)
|
|
—
|
Medical device
regulations (4)
|
—
|
|
(1)
|
|
—
|
|
(27)
|
|
(0.1)
|
|
—
|
|
—
|
|
—
|
(Gain)/loss on
minority investments (5)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(113)
|
Non-GAAP
|
$
23,775
|
|
$ 7,824
|
|
32.9 %
|
|
$
2,033
|
|
8.6 %
|
|
$
(89)
|
|
(0.4) %
|
|
$
(520)
|
Currency
impact
|
(106)
|
|
(56)
|
|
(0.1)
|
|
2
|
|
—
|
|
(327)
|
|
(1.4)
|
|
8
|
Currency
Adjusted
|
$
23,669
|
|
$ 7,768
|
|
32.8 %
|
|
$
2,035
|
|
8.6 %
|
|
$
(416)
|
|
(1.8) %
|
|
$
(512)
|
|
See description of
non-GAAP financial measures contained in the press release dated
February 20, 2024.
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million,
and, therefore, may not sum.
|
(2)
|
Associated costs
include costs incurred as a direct result of the restructuring
program, such as salaries for employees supporting the program,
consulting expenses, and asset write-offs.
|
(3)
|
The charges primarily
include business combination costs, changes in fair value of
contingent consideration, and charges related to the potential
separation of the Patient Monitoring and Respiratory Interventions
businesses within our Medical Surgical Portfolio.
|
(4)
|
The charges represent
incremental costs of complying with the new European Union medical
device regulations for previously registered products and primarily
include charges for contractors supporting the project and other
direct third-party expenses. We consider these costs to be
duplicative of previously incurred costs and/or one-time costs,
which are limited to a specific time period.
|
(5)
|
We exclude unrealized
and realized gains and losses on our minority investments as we do
not believe that these components of income or expense have a
direct correlation to our ongoing or future business
operations.
|
MEDTRONIC
PLC
GAAP TO NON-GAAP
RECONCILIATIONS(1)
(Unaudited)
|
|
|
Nine months
ended
|
(in
millions)
|
January 26,
2024
|
|
January 27,
2023
|
Net cash provided by
operating activities
|
$
4,010
|
|
$
3,579
|
Additions to property,
plant, and equipment
|
(1,161)
|
|
(1,081)
|
Free Cash
Flow(2)
|
$
2,849
|
|
$
2,498
|
|
See description of
non-GAAP financial measures contained in the press release dated
February 20, 2024.
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million,
and, therefore, may not sum.
|
(2)
|
Free cash flow
represents operating cash flows less property, plant, and equipment
additions.
|
MEDTRONIC
PLC
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
(in millions)
|
|
January 26,
2024
|
|
April 28,
2023
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,623
|
|
$
1,543
|
Investments
|
|
6,698
|
|
6,416
|
Accounts receivable,
less allowances and credit losses of $180 and $176,
respectively
|
|
5,968
|
|
5,998
|
Inventories,
net
|
|
5,726
|
|
5,293
|
Other current
assets
|
|
2,499
|
|
2,425
|
Total current
assets
|
|
22,513
|
|
21,675
|
Property, plant, and
equipment, net
|
|
5,838
|
|
5,569
|
Goodwill
|
|
41,160
|
|
41,425
|
Other intangible
assets, net
|
|
13,690
|
|
14,844
|
Tax
assets
|
|
3,599
|
|
3,477
|
Other
assets
|
|
4,036
|
|
3,959
|
Total
assets
|
|
$
90,836
|
|
$
90,948
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current debt
obligations
|
|
$
1,029
|
|
$
20
|
Accounts
payable
|
|
1,992
|
|
2,662
|
Accrued
compensation
|
|
2,174
|
|
1,949
|
Accrued income
taxes
|
|
1,109
|
|
840
|
Other accrued
expenses
|
|
3,488
|
|
3,581
|
Total current
liabilities
|
|
9,793
|
|
9,051
|
Long-term
debt
|
|
24,153
|
|
24,344
|
Accrued compensation
and retirement benefits
|
|
1,049
|
|
1,093
|
Accrued income
taxes
|
|
1,821
|
|
2,360
|
Deferred tax
liabilities
|
|
615
|
|
708
|
Other
liabilities
|
|
1,410
|
|
1,727
|
Total
liabilities
|
|
38,840
|
|
39,283
|
Commitments and
contingencies
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Ordinary shares— par
value $0.0001, 2.6 billion shares authorized, 1,329,653,024 and
1,330,809,036 shares issued and outstanding,
respectively
|
|
—
|
|
—
|
Additional paid-in
capital
|
|
24,589
|
|
24,590
|
Retained
earnings
|
|
30,661
|
|
30,392
|
Accumulated other
comprehensive loss
|
|
(3,459)
|
|
(3,499)
|
Total shareholders'
equity
|
|
51,792
|
|
51,483
|
Noncontrolling
interests
|
|
204
|
|
182
|
Total
equity
|
|
51,996
|
|
51,665
|
Total liabilities
and equity
|
|
$
90,836
|
|
$
90,948
|
|
The data in this
schedule has been intentionally rounded to the nearest million,
and, therefore, may not sum.
|
MEDTRONIC
PLC
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Nine months
ended
|
(in
millions)
|
January 26,
2024
|
|
January 27,
2023
|
Operating
Activities:
|
|
|
|
Net income
|
$
3,045
|
|
$
2,595
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
1,993
|
|
2,018
|
Provision for credit
losses
|
62
|
|
54
|
Deferred income
taxes
|
(250)
|
|
(78)
|
Stock-based
compensation
|
303
|
|
280
|
Loss on debt
extinguishment
|
—
|
|
53
|
Other, net
|
265
|
|
182
|
Change in operating
assets and liabilities, net of acquisitions and
divestitures:
|
|
|
|
Accounts receivable,
net
|
(140)
|
|
(408)
|
Inventories,
net
|
(530)
|
|
(936)
|
Accounts payable and
accrued liabilities
|
(253)
|
|
163
|
Other operating assets
and liabilities
|
(485)
|
|
(344)
|
Net cash provided by
operating activities
|
4,010
|
|
3,579
|
Investing
Activities:
|
|
|
|
Acquisitions, net of
cash acquired
|
(74)
|
|
(1,867)
|
Additions to property,
plant, and equipment
|
(1,161)
|
|
(1,081)
|
Purchases of
investments
|
(5,422)
|
|
(5,472)
|
Sales and maturities
of investments
|
5,142
|
|
5,387
|
Other investing
activities, net
|
(155)
|
|
15
|
Net cash used in
investing activities
|
(1,670)
|
|
(3,018)
|
Financing
Activities:
|
|
|
|
Change in current debt
obligations, net
|
1,010
|
|
625
|
Proceeds from
short-term borrowings (maturities greater than 90 days)
|
—
|
|
2,284
|
Issuance of long-term
debt
|
—
|
|
3,430
|
Payments on long-term
debt
|
—
|
|
(3,083)
|
Dividends to
shareholders
|
(2,753)
|
|
(2,711)
|
Issuance of ordinary
shares
|
206
|
|
209
|
Repurchase of ordinary
shares
|
(510)
|
|
(548)
|
Other financing
activities
|
(44)
|
|
(276)
|
Net cash used in
financing activities
|
(2,091)
|
|
(70)
|
Effect of exchange rate
changes on cash and cash equivalents
|
(170)
|
|
317
|
Net change in cash
and cash equivalents
|
80
|
|
808
|
Cash and cash
equivalents at beginning of period
|
1,543
|
|
3,714
|
Cash and cash
equivalents at end of period
|
$
1,623
|
|
$
4,521
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
Cash paid
for:
|
|
|
|
Income
taxes
|
$
1,403
|
|
$
1,314
|
Interest
|
568
|
|
262
|
|
The data in this
schedule has been intentionally rounded to the nearest million,
and, therefore, may not sum.
|
About Medtronic
Bold thinking. Bolder actions. We are
Medtronic. Medtronic plc, headquartered in Dublin, Ireland, is the leading global
healthcare technology company that boldly attacks the most
challenging health problems facing humanity by searching out and
finding solutions. Our Mission — to alleviate pain, restore health,
and extend life — unites a global team of 95,000+ passionate people
across 150 countries. Our technologies and therapies treat 70
health conditions and include cardiac devices, surgical robotics,
insulin pumps, surgical tools, patient monitoring systems, and
more. Powered by our diverse knowledge, insatiable curiosity, and
desire to help all those who need it, we deliver innovative
technologies that transform the lives of two people every second,
every hour, every day. Expect more from us as we empower
insight-driven care, experiences that put people first, and better
outcomes for our world. In everything we do, we are engineering the
extraordinary. For more information on Medtronic (NYSE:MDT), visit
www.Medtronic.com and follow on X and LinkedIn.
FORWARD LOOKING STATEMENTS
This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, which are subject
to risks and uncertainties, including risks related to competitive
factors, difficulties and delays inherent in the development,
manufacturing, marketing and sale of medical products, government
regulation, geopolitical conflicts, general economic conditions,
and other risks and uncertainties described in the company's
periodic reports on file with the U.S. Securities and Exchange
Commission including the most recent Annual Report on Form 10-K of
the company. In some cases, you can identify these statements by
forward-looking words or expressions, such as "anticipate,"
"believe," "could," "estimate," "expect," "forecast," "intend,"
"looking ahead," "may," "plan," "possible," "potential," "project,"
"should," "going to," "will," and similar words or expressions, the
negative or plural of such words or expressions and other
comparable terminology. Actual results may differ materially from
anticipated results. Medtronic does not undertake to update its
forward-looking statements or any of the information contained in
this press release, including to reflect future events or
circumstances.
NON-GAAP FINANCIAL MEASURES
This press release
contains financial measures, including adjusted net income,
adjusted diluted EPS, and organic revenue, which are considered
"non-GAAP" financial measures under applicable SEC rules and
regulations. References to quarterly or annual figures increasing,
decreasing or remaining flat are in comparison to fiscal year
2023.
Medtronic management believes that non-GAAP financial
measures provide information useful to investors in understanding
the company's underlying operational performance and trends and to
facilitate comparisons with the performance of other companies in
the med tech industry. Non-GAAP net income and diluted EPS exclude
the effect of certain charges or gains that contribute to or reduce
earnings but that result from transactions or events that
management believes may or may not recur with similar materiality
or impact to operations in future periods (Non-GAAP Adjustments).
Medtronic generally uses non-GAAP financial measures to facilitate
management's review of the operational performance of the company
and as a basis for strategic planning. Non-GAAP financial measures
should be considered supplemental to and not a substitute for
financial information prepared in accordance with U.S. generally
accepted accounting principles (GAAP), and investors are cautioned
that Medtronic may calculate non-GAAP financial measures in a way
that is different from other companies. Management strongly
encourages investors to review the company's consolidated financial
statements and publicly filed reports in their entirety.
Reconciliations of the non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in the
financial schedules accompanying this press release.
Medtronic calculates forward-looking non-GAAP financial
measures based on internal forecasts that omit certain amounts that
would be included in GAAP financial measures. For instance,
forward-looking organic revenue growth guidance excludes the impact
of foreign currency fluctuations, as well as significant
acquisitions or divestitures. Forward-looking diluted non-GAAP EPS
guidance also excludes other potential charges or gains that would
be recorded as Non-GAAP Adjustments to earnings during the fiscal
year. Medtronic does not attempt to provide reconciliations of
forward-looking non-GAAP EPS guidance to projected GAAP EPS
guidance because the combined impact and timing of recognition of
these potential charges or gains is inherently uncertain and
difficult to predict and is unavailable without unreasonable
efforts. In addition, the company believes such reconciliations
would imply a degree of precision and certainty that could be
confusing to investors. Such items could have a substantial impact
on GAAP measures of financial performance.
Contacts:
|
|
|
|
Erika Winkels
|
Ryan
Weispfenning
|
Public Relations
|
Investor
Relations
|
+1-763-526-8478
|
+1-763-505-4626
|
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SOURCE Medtronic plc