MDT Medtronic PLC

MEDTRONIC PLC

WORLD WIDE REVENUE⁽¹⁾

(Unaudited)

FIRST QUARTER

REPORTED

ORGANIC

(in millions)

FY25

FY24

Growth

Currency
Impact⁽³⁾

Adjusted
FY25⁽⁴⁾

Adjusted
FY24⁽⁴⁾

Growth

Cardiovascular

$       3,007

$       2,850

5.5 %

$          (39)

$       3,046

$       2,850

6.9 %

Cardiac Rhythm & Heart Failure

1,535

1,446

6.2

(19)

1,555

1,446

7.5

Structural Heart & Aortic

856

814

5.1

(12)

868

814

6.6

Coronary & Peripheral Vascular

616

589

4.5

(8)

624

589

5.8

Neuroscience

2,317

2,219

4.4

(18)

2,336

2,219

5.3

Cranial & Spinal Technologies

1,147

1,103

4.0

(9)

1,156

1,103

4.8

Specialty Therapies

713

695

2.5

(7)

719

695

3.4

Neuromodulation

457

420

8.9

(3)

460

420

9.6

Medical Surgical

1,996

2,005

(0.4)

(29)

2,024

2,005

1.0

Surgical & Endoscopy

1,544

1,546

(0.1)

(22)

1,566

1,546

1.3

Acute Care & Monitoring

452

459

(1.5)

(6)

458

459

(0.1)

Diabetes

647

578

11.8

(4)

651

578

12.6

Total Reportable Segments

7,967

7,652

4.1

(90)

8,057

7,652

5.3

Other⁽²⁾

(52)

50

(203.7)

(2)

—

—

—

TOTAL

$       7,915

$       7,702

2.8 %

$          (93)

$       8,057

$       7,652

5.3 %

(1)

The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

(2)

Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested, and specifically for the first quarter of fiscal year 2025, incremental Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court of Italy relating to certain prior years since 2015.

(3)

The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.

(4)

The three months ended July 26, 2024 excludes $142 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2), $38 million of inorganic revenue related to the transition activity noted in (2), and $90 million of unfavorable currency impact on the remaining segments. The three months ended July 28, 2023 excludes $50 million of inorganic revenue related to the transition activity noted in (2).

MEDTRONIC PLC

U.S.⁽¹⁾⁽²⁾ REVENUE

(Unaudited)

FIRST QUARTER

REPORTED

ORGANIC

(in millions)

FY25

FY24

Growth

Adjusted
FY25

Adjusted
FY24

Growth

Cardiovascular

$       1,403

$       1,350

3.9 %

$       1,403

$       1,350

3.9 %

Cardiac Rhythm & Heart Failure

766

720

6.4

766

720

6.4

Structural Heart & Aortic

368

357

3.3

368

357

3.3

Coronary & Peripheral Vascular

268

273

(1.6)

268

273

(1.6)

Neuroscience

1,565

1,497

4.5

1,565

1,497

4.5

Cranial & Spinal Technologies

855

821

4.2

855

821

4.2

Specialty Therapies

398

392

1.5

398

392

1.5

Neuromodulation

312

284

9.8

312

284

9.8

Medical Surgical

881

867

1.6

881

867

1.6

Surgical & Endoscopy

630

619

1.6

630

619

1.6

Acute Care & Monitoring

251

248

1.4

251

248

1.4

Diabetes

215

188

14.3

215

188

14.3

Total Reportable Segments

4,064

3,903

4.1

4,064

3,903

4.1

Other⁽³⁾

18

22

(15.6)

—

—

—

TOTAL

$       4,082

$       3,924

4.0 %

$       4,064

$       3,903

4.1 %

(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. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

(3)

Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested.

MEDTRONIC PLC

INTERNATIONAL REVENUE⁽¹⁾

(Unaudited)

FIRST QUARTER

REPORTED

ORGANIC

(in millions)

FY25

FY24

Growth

Currency
Impact⁽³⁾

Adjusted
FY25⁽⁴⁾

Adjusted
FY24⁽⁴⁾

Growth

Cardiovascular

$       1,604

$       1,500

6.9 %

$          (39)

$       1,643

$       1,500

9.5 %

Cardiac Rhythm & Heart Failure

769

726

5.9

(19)

789

726

8.6

Structural Heart & Aortic

487

457

6.5

(12)

499

457

9.2

Coronary & Peripheral Vascular

347

317

9.7

(8)

355

317

12.2

Neuroscience

752

721

4.3

(18)

770

721

6.8

Cranial & Spinal Technologies

292

282

3.4

(9)

301

282

6.6

Specialty Therapies

314

303

3.8

(7)

321

303

5.9

Neuromodulation

146

136

7.2

(3)

149

136

9.4

Medical Surgical

1,115

1,137

(2.0)

(29)

1,143

1,137

0.5

Surgical & Endoscopy

915

926

(1.3)

(22)

937

926

1.1

Acute Care & Monitoring

200

211

(5.0)

(6)

207

211

(2.0)

Diabetes

432

390

10.7

(4)

436

390

11.7

Total Reportable Segments

3,903

3,749

4.1

(90)

3,993

3,749

6.5

Other⁽²⁾

(70)

28

(347.5)

(2)

—

—

—

TOTAL

$       3,832

$       3,777

1.5 %

$          (93)

$       3,993

$       3,749

6.5 %

(1)

The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

(2)

Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested, and specifically for the first quarter of fiscal year 2025, incremental Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court of Italy relating to certain prior years since 2015.

(3)

The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.

(4)

The three months ended July 26, 2024 excludes $161 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2), $19 million of inorganic revenue related to the transition activity noted in (2), and $90 million of unfavorable currency impact on the remaining segments. The three months ended July 28, 2023 excludes $28 million of inorganic revenue related to the transition activity noted in (2).

MEDTRONIC PLC

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) 

Three months ended

(in millions, except per share data)

July 26, 2024

July 28, 2023

Net sales

$            7,915

$            7,702

Costs and expenses:

Cost of products sold, excluding amortization of intangible assets

2,761

2,628

Research and development expense

676

668

Selling, general, and administrative expense

2,655

2,613

Amortization of intangible assets

414

429

Restructuring charges, net

47

54

Certain litigation charges, net

81

40

Other operating expense, net

1

1

Operating profit

1,278

1,268

Other non-operating income, net

(157)

(76)

Interest expense, net

167

148

Income before income taxes

1,268

1,196

Income tax provision

220

400

Net income

1,049

797

Net income attributable to noncontrolling interests

(6)

(6)

Net income attributable to Medtronic

$            1,042

$                791

Basic earnings per share

$               0.81

$               0.59

Diluted earnings per share

$               0.80

$               0.59

Basic weighted average shares outstanding

1,293.3

1,330.5

Diluted weighted average shares outstanding

1,296.5

1,333.8

The data in the schedule above has been intentionally rounded to the nearest million.

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS⁽¹⁾

(Unaudited) 

Three months ended July 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

$  7,915

$   2,761

65.1 %

$     1,278

16.1 %

$    1,268

$       1,042

$     0.80

17.4 %

Non-GAAP Adjustments:

Amortization of intangible assets

—

—

—

414

5.1

414

340

0.26

18.1

Restructuring and associated costs⁽²⁾

—

(9)

0.1

62

0.8

62

51

0.04

19.4

Acquisition and divestiture-related items⁽³⁾

—

(10)

0.1

12

0.1

12

11

0.01

8.3

Certain litigation charges, net

—

—

—

81

1.0

81

68

0.05

16.0

(Gain)/loss on minority investments⁽⁴⁾

—

—

—

—

—

(17)

(17)

(0.01)

—

Medical device regulations⁽⁵⁾

—

(11)

0.1

14

0.2

14

11

0.01

21.4

Other⁽⁶⁾

90

—

0.6

90

1.1

90

70

0.05

22.2

Certain tax adjustments, net

—

—

—

—

—

—

17

0.01

—

Non-GAAP

$  8,004

$   2,730

65.9 %

$     1,953

24.4 %

$    1,925

$       1,592

$     1.23

17.0 %

Currency impact

91

(31)

0.8

100

1.0

0.06

Currency Adjusted

$  8,095

$   2,699

66.7 %

$     2,053

25.4 %

$     1.29

Three months ended July 28, 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

$  7,702

$   2,628

65.9 %

$     1,268

16.5 %

$    1,196

$          791

$     0.59

33.4 %

Non-GAAP Adjustments:

Amortization of intangible assets

—

—

—

429

5.6

429

364

0.27

15.2

Restructuring and associated costs⁽²⁾

—

(16)

0.2

91

1.2

91

76

0.06

16.5

Acquisition and divestiture-related items⁽³⁾

—

(6)

0.1

50

0.6

50

46

0.03

6.0

Certain litigation charges, net

—

—

—

40

0.5

40

31

0.02

22.5

(Gain)/loss on minority investments⁽⁴⁾

—

—

—

—

—

64

64

0.05

—

Medical device regulations⁽⁵⁾

—

(21)

0.3

31

0.4

31

25

0.02

22.6

Certain tax adjustments, net⁽⁷⁾

—

—

—

—

—

—

198

0.15

—

Non-GAAP

$  7,702

$   2,586

66.4 %

$     1,909

24.8 %

$    1,902

$       1,596

$     1.20

15.8 %

See description of non-GAAP financial measures contained in the press release dated August 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 and other costs primarily include salaries and wages for employees supporting the restructuring activities, consulting expenses, and asset write-offs.

(3)

The charges primarily include business combination costs, changes in fair value of contingent consideration, and exit of business related charges.

(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)

Reflects the recognition of incremental Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court of Italy relating to certain prior years since 2015.

(7)

The charge relates to an income tax reserve adjustment associated with the June 2023 Israeli Central-Lod District Court decision in Medtronic Ventor Technologies Ltd v. Kfar Saba Assessing Office and amortization of previously established deferred tax assets from intercompany intellectual property transactions.

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS⁽¹⁾

(Unaudited) 

Three months ended July 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

$      7,915

$     2,655

33.5 %

$       676

8.5 %

$             1

— %

$          (157)

Non-GAAP Adjustments:

Restructuring and associated costs⁽²⁾

—

(5)

(0.2)

—

—

—

—

—

Acquisition and divestiture-related items⁽³⁾

—

(7)

(0.3)

—

—

6

0.1

—

Medical device regulations⁽⁴⁾

—

—

—

(3)

—

—

—

—

Other⁽⁵⁾

90

—

—

—

—

—

—

—

(Gain)/loss on minority investments⁽⁶⁾

—

—

—

—

—

—

—

17

Non-GAAP

$      8,004

$     2,642

33.0 %

$       673

8.4 %

$             7

0.1 %

$          (140)

See description of non-GAAP financial measures contained in the press release dated August 20, 2024.

(1)

The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.

(2)

Associated and other costs primarily include salaries and wages for employees supporting the restructuring activities, consulting expenses, and asset write-offs.

(3)

The charges primarily include business combination costs, changes in fair value of contingent consideration, and exit of business related charges.

(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)

Reflects the recognition of incremental Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court of Italy relating to certain prior years since 2015.

(6)

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)

Three months ended

(in millions)

July 26, 2024

July 28, 2023

Net cash provided by operating activities

$                        986

$                        875

Additions to property, plant, and equipment

(520)

(354)

Free Cash Flow⁽²⁾

$                        466

$                        521

See description of non-GAAP financial measures contained in the press release dated August 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)

July 26, 2024

April 26, 2024

ASSETS

Current assets:

Cash and cash equivalents

$               1,311

$               1,284

Investments

6,532

6,721

Accounts receivable, less allowances and credit losses of $170 and $173, respectively

6,011

6,128

Inventories

5,414

5,217

Other current assets

2,679

2,584

Total current assets

21,947

21,935

Property, plant, and equipment, net

6,282

6,131

Goodwill

41,084

40,986

Other intangible assets, net

12,819

13,225

Tax assets

3,554

3,657

Other assets

4,062

4,047

Total assets

$             89,749

$             89,981

LIABILITIES AND EQUITY

Current liabilities:

Current debt obligations

$               1,553

$               1,092

Accounts payable

2,291

2,410

Accrued compensation

1,776

2,375

Accrued income taxes

1,063

1,330

Other accrued expenses

3,604

3,582

Total current liabilities

10,287

10,789

Long-term debt

26,312

23,932

Accrued compensation and retirement benefits

1,107

1,101

Accrued income taxes

1,917

1,859

Deferred tax liabilities

496

515

Other liabilities

1,470

1,365

Total liabilities

41,589

39,561

Commitments and contingencies

Shareholders' equity:

Ordinary shares— par value $0.0001, 2.6 billion shares authorized, 1,282,494,588 and
1,311,337,531 shares issued and outstanding, respectively

—

—

Additional paid-in capital

20,810

23,129

Retained earnings

30,547

30,403

Accumulated other comprehensive loss

(3,410)

(3,318)

Total shareholders' equity

47,947

50,214

Noncontrolling interests

213

206

Total equity

48,160

50,420

Total liabilities and equity

$             89,749

$             89,981

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)

Three months ended

(in millions)

July 26, 2024

July 28, 2023

Operating Activities:

Net income

$                1,049

$                   797

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

662

672

Provision for credit losses

18

21

Deferred income taxes

88

—

Stock-based compensation

83

73

Other, net

(9)

135

Change in operating assets and liabilities, net of acquisitions and divestitures:

Accounts receivable, net

110

164

Inventories

(217)

(410)

Accounts payable and accrued liabilities

(604)

(673)

Other operating assets and liabilities

(194)

96

Net cash provided by operating activities

986

875

Investing Activities:

Additions to property, plant, and equipment

(520)

(354)

Purchases of investments

(1,879)

(1,916)

Sales and maturities of investments

2,157

1,748

Other investing activities, net

(17)

(17)

Net cash used in investing activities

(259)

(539)

Financing Activities:

Change in current debt obligations, net

(624)

500

Issuance of long-term debt

3,209

—

Dividends to shareholders

(898)

(918)

Issuance of ordinary shares

89

77

Repurchase of ordinary shares

(2,492)

(152)

Other financing activities

(15)

(8)

Net cash used in financing activities

(731)

(501)

Effect of exchange rate changes on cash and cash equivalents

31

(39)

Net change in cash and cash equivalents

27

(204)

Cash and cash equivalents at beginning of period

1,284

1,543

Cash and cash equivalents at end of period

$                1,311

$                1,339

Supplemental Cash Flow Information

Cash paid for:

Income taxes

$                   394

$                   117

Interest

119

84

The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.

Contacts:

Erika Winkels               

Ryan Weispfenning

Public Relations           

Investor Relations

+1-763-526-8478         

+1-763-505-4626