Medtronic reports second quarter fiscal 2023 financial results

 
 

  Earnings delivered despite slower market procedure volume and supply recovery; Growth driven by TAVR, Pacing, U.S. Core Spine, and International Diabetes  

 

Medtronic plc (NYSE:MDT) today announced financial results for its second quarter of fiscal year 2023, which ended October 28, 2022 .

 

   Key Highlights   

 
  • Revenue of $7.6 billion decreased 3% as reported and increased 2% organic
  •  
  • GAAP diluted EPS of $0.32 decreased 67%; non-GAAP diluted EPS of $1.30 decreased 2%
  •  
  • Company updates guidance; expects organic revenue to accelerate in second half
  •  

The company reported worldwide revenue of $7.585 billion , a decrease of 3% as reported and an increase of 2% on an organic basis. The organic comparison excludes a $457 million negative impact from foreign currency translation and a $25 million contribution from the company's fiscal first quarter acquisition of Intersect ENT, which is reported in the Specialty Therapies division in the Neuroscience Portfolio. Unless otherwise stated, all revenue growth rates in this press release are on an organic basis, which excludes the impact of foreign currency translation and revenue from the Intersect ENT acquisition.

 

The company's second quarter organic revenue results reflect slower supply recovery or lower than anticipated underlying market procedure volumes in certain businesses and the pricing impact of volume-based procurement in China . These challenges were partially offset by strength in certain product lines, including Transcatheter Aortic Valves (TAVR), Cardiac Pacing, Core Spine in the United States , and Diabetes in International.

 

As reported, second quarter GAAP net income and diluted earnings per share (EPS) were $427 million and $0.32 , respectively, both decreases of 67%. As detailed in the financial schedules included at the end of this release, second quarter non-GAAP net income and non-GAAP diluted EPS were $1.725 billion and $1.30 , respectively, decreases of 4% and 2%, respectively. Included in the company's GAAP earnings is a $764 million income tax reserve adjustment that was a direct result of the previously disclosed U.S. Tax Court opinion issued in the fiscal second quarter. The company's earnings decline also reflects the continued macroeconomic impact of inflation on materials, direct labor, freight, and utilities.

 

Second quarter U.S. revenue of $4.069 billion represented 54% of company revenue and increased 2% as reported and 1% organic. Non-U.S. developed market revenue of $2.157 billion represented 28% of company revenue and decreased 13% as reported and increased 3% organic. Emerging Markets revenue of $1.359 billion represented 18% of company revenue and decreased 1% as reported and increased 4% organic.

 

"Slower than predicted procedure and supply recovery drove revenue below our expectations this quarter. We continue to take decisive actions to improve the overall performance of the company, including streamlining our organizational structure, strengthening our supply chain, driving a performance culture, and strategically allocating capital to support our best growth opportunities with the investments they deserve," said Geoff Martha, Medtronic chairman and chief executive officer. "We're seeing the benefit of these changes – along with new incentives and strong execution – in certain businesses, and we're focused on ensuring these efforts translate into improved performance across the company. Looking ahead, we're confident we have a clear path to delivering durable growth and increased shareholder value."

 

   Cardiovascular Portfolio
 
The Cardiovascular Portfolio includes the Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV) divisions. Cardiovascular revenue of $2.773 billion decreased 2% as reported and increased 4% organic, with all three divisions returning to growth this quarter, including a high-single digit increase in SHA and low-single digit increases in CRHF and CPV, all on an organic basis.

 
  •   Cardiac Rhythm & Heart Failure revenue of $1.431 billion decreased 3% as reported and increased 3% organic. Cardiac Rhythm Management revenue increased mid-single digits, with mid-single digit growth in Cardiac Pacing Therapies driven by high-teens growth in Leadless Pacemakers from continued global adoption of Micra™ transcatheter pacing systems. Cardiovascular Diagnostics revenue increased low-single digits, as procedures remain under pressure market-wide. Cardiac Ablation Solutions revenue increased low-single digits, including low-double digit growth in the United States on the continued adoption of its Arctic Front™ cryoablation catheters. The company completed its acquisition of Affera in the second quarter, expanding its cardiac ablation portfolio to include technology under development, including its first-ever cardiac mapping and navigation platform that encompasses a differentiated, fully integrated diagnostic, focal pulsed field, and radiofrequency ablation solution.

  •  
  •   Structural Heart & Aortic revenue of $757 million increased 1% as reported and 8% organic. Structural Heart increased low-double digits, including mid-teens growth in transcatheter aortic valves (TAVR). Aortic increased mid-single digits with high-single digit growth in thoracic stent graft systems. Cardiac Surgery increased mid-single digits, driven by growth in surgical valves and perfusion systems.

  •  
  •   Coronary & Peripheral Vascular revenue of $584 million decreased 4% as reported and increased 2% organic. Coronary & Renal Denervation increased low-single digits on U.S. share gains from the recent launch of the Onyx Frontier™ drug-eluting stent, despite overall market percutaneous coronary intervention (PCI) procedures remaining flat in developed markets. Earlier this month, the company submitted the final module of the Symplicity Spyral™ renal denervation system premarket approval package to the U.S. Food and Drug Administration. Peripheral Vascular Health increased low-single digits, with growth in vascular embolization, drug-coated balloons, and superficial venous, partially offset by declines in directional atherectomy, peripheral stents, and percutaneous transluminal angioplasty balloons.
  •  

   Medical Surgical Portfolio
 
The Medical Surgical Portfolio includes the Surgical Innovations (SI) and the Respiratory, Gastrointestinal & Renal (RGR) divisions. Medical Surgical revenue of $2.070 billion decreased 10% as reported and 3% organic, with a low-double digit decline in RGR and partially offset by low-single digit growth in SI. Excluding the impact of ventilator sales given the increased COVID-19 related demand in the prior year, Medical Surgical revenue decreased 1% organic.

 
  •   Surgical Innovations revenue of $1.398 billion decreased 7% as reported and increased 1% organic. Advanced Surgical Instruments decreased low-single digits given expected acute supply chain shortages of raw materials and the impact of China provincial volume-based procurement (VBP) stapling tenders. These declines were partially offset by strength in Hernia & Wound Management, which increased mid-single digits. In Surgical Robotics, the company received three significant regulatory approvals for its Hugo™ robotic-assisted surgery system: Conformité Européenne (CE) Mark clearance for a general surgery indication, Health Canada license for a general laparoscopic surgery indication, and Ministry of Health, Labor, and Welfare (MHLW) approval for urological and gynecological indications in Japan .

  •  
  •   Respiratory, Gastrointestinal & Renal revenue of $671 million decreased 16% as reported and 11% organic. RGR revenue decreased 5% organic excluding the impact of ventilator sales. Respiratory Interventions decreased mid-twenties, with sales of ventilators declining low-fifties as demand continued to be well below pre-pandemic levels as expected. Patient Monitoring decreased mid-single digits, with expected low-double digit declines in Nellcor™ pulse oximetry products as COVID tailwinds abate, offset by low-double digit growth in Perioperative Complications products. The company announced last month its intention to separate the combined Respiratory Interventions and Patient Monitoring businesses. Gastrointestinal revenue decreased low-single digits given non-emergent procedure softness in the market, including low-double digit declines in Hepatopancreaticobiliary (HPB) products partially offset by low-single digit growth in Chronic and Colorectal products. Renal Care Solutions decreased low-double digits given product availability challenges. Medtronic announced in May its intention to contribute its Renal Care Solutions business into a new, independent kidney care-focused medical device company together with DaVita.
  •  

   Neuroscience Portfolio
 
The Neuroscience Portfolio includes the Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions. Neuroscience revenue of $2.186 billion increased 2% as reported and 5% organic, with a high-single digit increase in Specialty Therapies, a mid-single digit increase in CST, and a flat result year-over-year in Neuromodulation, all on an organic basis.

 
  •   Cranial & Spinal Technologies revenue of $1.081 billion increased 1% as reported and 5% organic. Spine & Biologics increased mid-single digits, with mid-teens growth in the United States partially offset by the impact of the China national volume-based procurement (VBP) spine tender. Neurosurgery increased high-single digits, with double digit growth in robotics, navigation, and powered surgical instruments.

  •  
  •   Specialty Therapies revenue of $686 million increased 8% as reported and 9% organic. Neurovascular increased high-single digits, with double digit growth in mechanical thrombectomy, aspiration, flow diversion, and liquid embolic products. Pelvic Health increased low-single digits on continued profitable growth despite competitive pressure. ENT increased high-teens on an organic basis driven by strength in Straightshot™ microdebriders, NIM Vital™ nerve monitoring systems, and StealthStation™ ENT navigation systems.

  •  
  •   Neuromodulation revenue of $419 million decreased 4% as reported and was flat year-over-year organic. Pain Therapies increased mid-single digits, with high-single digit growth in Targeted Drug Delivery and mid-single digit growth in Pain Stim. Interventional decreased mid-single digits on product availability challenges and competitive pressure. Brain Modulation decreased low-single digits, as significant declines of replacement devices were partially offset by increased share of initial implants from the continued adoption of the Percept™ PC deep brain stimulation (DBS) system and SenSight™ directional DBS lead system.
  •  

   Diabetes
 
Diabetes revenue of $556 million decreased 5% as reported and increased 3% organic. U.S. revenue declined low-double digits, given the absence of new product approvals. This was offset by mid-teens growth in non-U.S. developed markets and low-double digit growth in emerging markets. International sales were driven by high-teens growth of insulin pumps, low-twenties growth of continuous glucose monitoring (CGM) products, and high-single digit growth in consumable sales.

 

   Guidance
 
The company today issued revenue growth guidance for the remainder of the fiscal year and updated its fiscal year 2023 EPS guidance range.

 

The company expects fiscal year 2023 second half revenue growth of 3.5% to 4.0% on an organic basis, an acceleration over the first half. If foreign currency exchange rates as of the beginning of November hold, revenue growth in fiscal year 2023 would be negatively affected by approximately $1.740 billion to $1.840 billion versus the previously stated $1.4 billion to $1.5 billion impact.

 

The company now expects fiscal year 2023 diluted non-GAAP EPS in the range of $5.25 to $5.30 . EPS guidance includes an estimated 18 cent negative impact from foreign currency at rates as of the beginning November.

 

"We continue to expect organic revenue growth acceleration, with the second half growing faster than the first. However, given a slower pace of market and supply recovery, we're reducing our revenue expectations for the remainder of the year," said Karen Parkhill , Medtronic chief financial officer. "On the bottom line, we are driving expense reductions throughout the company to help offset the lower revenue and the effects of cost inflation. We are also committed to investing appropriately for the long-term, allocating capital to our most promising growth drivers and executing tuck-in acquisitions, all designed to reach more patients and create greater value for our shareholders."

 

   Webcast Information
 
Medtronic will host a webcast today, November 22 , 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 fiscal year 2023 third and fourth quarter results on February 21, 2023 , and Thursday, May 25, 2023 , respectively. Confirmation and additional details will be provided closer to the specific event.

 

   Financial Schedules
 
The second quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Investor Events link at investorrelations.medtronic.com . To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here . To view the second quarter earnings presentation, click here .

 

 

 
 
                                                                                                                                                                                                                                                                                                                                                                                  
 

   MEDTRONIC PLC   

 

   WORLD WIDE REVENUE (1)   

 

  (Unaudited)  

 
 
 
 

    SECOND QUARTER    

 
 
 
 

    SECOND QUARTER     YEAR-TO-DATE    

 
 
 

    REPORTED    

 
 
 
 
 

    CONSTANT
CURRENCY
 
 
 

 
 
 
 

    REPORTED    

 
 
 
 
 

    CONSTANT
CURRENCY
 
 
 

 
 

    (in millions)    

 
 

  FY23  

 
 
 

  FY22  

 
 
 

  Growth  

 
 
 

  Currency
Impact (2)
 

 
 
 

  FY23  

 
 
 

  Growth (3)  

 
 
 
 

  FY23  

 
 
 

  FY22  

 
 
 

  Growth  

 
 
 

  Currency
Impact (2)
 

 
 
 

  FY23  

 
 
 

  Growth (3)  

 
 

    Cardiovascular    

 
 

   $    2,773   

 
 
 

   $    2,827   

 
 
 

   (1.9) %   

 
 
 

   $     (177)   

 
 
 

   $    2,950   

 
 
 

   4.4 %   

 
 
 
 

   $    5,486   

 
 
 

   $    5,717   

 
 
 

   (4.0) %   

 
 
 

   $     (315)   

 
 
 

   $    5,801   

 
 
 

   1.5 %   

 
 

  Cardiac Rhythm & Heart Failure  

 
 

  1,431  

 
 
 

  1,471  

 
 
 

  (2.7)  

 
 
 

  (91)  

 
 
 

  1,522  

 
 
 

  3.5  

 
 
 
 

  2,824  

 
 
 

  2,954  

 
 
 

  (4.4)  

 
 
 

  (162)  

 
 
 

  2,986  

 
 
 

  1.1  

 
 

  Structural Heart & Aortic  

 
 

  757  

 
 
 

  750  

 
 
 

  0.9  

 
 
 

  (54)  

 
 
 

  811  

 
 
 

  8.1  

 
 
 
 

  1,499  

 
 
 

  1,537  

 
 
 

  (2.5)  

 
 
 

  (96)  

 
 
 

  1,595  

 
 
 

  3.8  

 
 

  Coronary & Peripheral Vascular  

 
 

  584  

 
 
 

  606  

 
 
 

  (3.6)  

 
 
 

  (32)  

 
 
 

  616  

 
 
 

  1.7  

 
 
 
 

  1,163  

 
 
 

  1,226  

 
 
 

  (5.1)  

 
 
 

  (57)  

 
 
 

  1,220  

 
 
 

  (0.5)  

 
 

    Medical Surgical    

 
 

   2,070   

 
 
 

   2,299   

 
 
 

   (10.0)   

 
 
 

   (149)   

 
 
 

   2,219   

 
 
 

   (3.5)   

 
 
 
 

   4,071   

 
 
 

   4,621   

 
 
 

   (11.9)   

 
 
 

   (264)   

 
 
 

   4,335   

 
 
 

   (6.2)   

 
 

  Surgical Innovations  

 
 

  1,398  

 
 
 

  1,497  

 
 
 

  (6.6)  

 
 
 

  (107)  

 
 
 

  1,505  

 
 
 

  0.5  

 
 
 
 

  2,736  

 
 
 

  3,051  

 
 
 

  (10.3)  

 
 
 

  (189)  

 
 
 

  2,925  

 
 
 

  (4.1)  

 
 

  Respiratory, Gastrointestinal, & Renal  

 
 

  671  

 
 
 

  802  

 
 
 

  (16.3)  

 
 
 

  (42)  

 
 
 

  713  

 
 
 

  (11.1)  

 
 
 
 

  1,335  

 
 
 

  1,570  

 
 
 

  (15.0)  

 
 
 

  (75)  

 
 
 

  1,410  

 
 
 

  (10.2)  

 
 

    Neuroscience    

 
 

   2,186   

 
 
 

   2,136   

 
 
 

   2.3   

 
 
 

   (85)   

 
 
 

   2,271   

 
 
 

   6.3   

 
 
 
 

   4,301   

 
 
 

   4,340   

 
 
 

   (0.9)   

 
 
 

   (149)   

 
 
 

   4,450   

 
 
 

   2.5   

 
 

  Cranial & Spinal Technologies  

 
 

  1,081  

 
 
 

  1,067  

 
 
 

  1.3  

 
 
 

  (35)  

 
 
 

  1,116  

 
 
 

  4.6  

 
 
 
 

  2,124  

 
 
 

  2,189  

 
 
 

  (3.0)  

 
 
 

  (64)  

 
 
 

  2,188  

 
 
 

  

 
 

  Specialty Therapies  

 
 

  686  

 
 
 

  634  

 
 
 

  8.2  

 
 
 

  (31)  

 
 
 

  717  

 
 
 

  13.1  

 
 
 
 

  1,353  

 
 
 

  1,275  

 
 
 

  6.1  

 
 
 

  (53)  

 
 
 

  1,406  

 
 
 

  10.3  

 
 

  Neuromodulation  

 
 

  419  

 
 
 

  435  

 
 
 

  (3.7)  

 
 
 

  (18)  

 
 
 

  437  

 
 
 

  0.5  

 
 
 
 

  824  

 
 
 

  875  

 
 
 

  (5.8)  

 
 
 

  (33)  

 
 
 

  857  

 
 
 

  (2.1)  

 
 

    Diabetes    

 
 

   556   

 
 
 

   585   

 
 
 

   (5.0)   

 
 
 

   (47)   

 
 
 

   603   

 
 
 

   3.1   

 
 
 
 

   1,098   

 
 
 

   1,157   

 
 
 

   (5.1)   

 
 
 

   (80)   

 
 
 

   1,178   

 
 
 

   1.8   

 
 

    TOTAL    

 
 

   $    7,585   

 
 
 

   $    7,847   

 
 
 

   (3.3) %   

 
 
 

   $     (457)   

 
 
 

   $    8,042   

 
 
 

   2.5 %   

 
 
 
 

   $   14,955   

 
 
 

   $   15,835   

 
 
 

   (5.6) %   

 
 
 

   $     (808)   

 
 
 

   $   15,763   

 
 
 

   (0.5) %   

 
 
 
 
    
 
 

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

 
 

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

 
 

  (3) The three and six months ended October 28, 2022 includes $25 million and $45 million, respectively, of inorganic revenue related to the Intersect ENT acquisition, which is included in the reported results of the Specialty Therapies division of the Neuroscience portfolio. When excluding the impact of currency and the inorganic Intersect ENT revenue for three and six months ended October 28, 2022, revenue increased 2.2 percent organic and declined 0.7 percent organic, respectively.  

 
 
 

 

 
 
                                                                                                                                                                                                  
 

   MEDTRONIC PLC   

 

   U.S. (1)(2) REVENUE   

 
 
 
 

    SECOND QUARTER    

 
 
 
 

    SECOND QUARTER     YEAR-TO-DATE    

 
 
 

    REPORTED    

 
 
 
 

    REPORTED    

 
 

    (in millions)    

 
 

  FY23  

 
 
 

  FY22  

 
 
 

  Growth (3)  

 
 
 
 

  FY23  

 
 
 

  FY22  

 
 
 

  Growth (3)  

 
 

    Cardiovascular    

 
 

   $          1,424   

 
 
 

   $          1,373   

 
 
 

   3.7 %   

 
 
 
 

   $          2,722   

 
 
 

   $          2,793   

 
 
 

   (2.5) %   

 
 

  Cardiac Rhythm & Heart Failure  

 
 

  790  

 
 
 

  761  

 
 
 

  3.8  

 
 
 
 

  1,507  

 
 
 

  1,530  

 
 
 

  (1.5)  

 
 

  Structural Heart & Aortic  

 
 

  348  

 
 
 

  327  

 
 
 

  6.4  

 
 
 
 

  660  

 
 
 

  674  

 
 
 

  (2.1)  

 
 

  Coronary & Peripheral Vascular  

 
 

  286  

 
 
 

  286  

 
 
 

  

 
 
 
 

  555  

 
 
 

  589  

 
 
 

  (5.8)  

 
 

    Medical Surgical    

 
 

   905   

 
 
 

   970   

 
 
 

   (6.7)   

 
 
 
 

   1,748   

 
 
 

   1,959   

 
 
 

   (10.8)   

 
 

  Surgical Innovations  

 
 

  560  

 
 
 

  550  

 
 
 

  1.8  

 
 
 
 

  1,069  

 
 
 

  1,170  

 
 
 

  (8.6)  

 
 

  Respiratory, Gastrointestinal, & Renal  

 
 

  345  

 
 
 

  420  

 
 
 

  (17.9)  

 
 
 
 

  679  

 
 
 

  790  

 
 
 

  (14.1)  

 
 

    Neuroscience    

 
 

   1,512   

 
 
 

   1,394   

 
 
 

   8.5   

 
 
 
 

   2,931   

 
 
 

   2,840   

 
 
 

   3.2   

 
 

  Cranial & Spinal Technologies  

 
 

  817  

 
 
 

  749  

 
 
 

  9.1  

 
 
 
 

  1,580  

 
 
 

  1,544  

 
 
 

  2.3  

 
 

  Specialty Therapies  

 
 

  403  

 
 
 

  354  

 
 
 

  13.8  

 
 
 
 

  784  

 
 
 

  714  

 
 
 

  9.8  

 
 

  Neuromodulation  

 
 

  291  

 
 
 

  291  

 
 
 

  

 
 
 
 

  567  

 
 
 

  582  

 
 
 

  (2.6)  

 
 

    Diabetes    

 
 

   228   

 
 
 

   261   

 
 
 

   (12.6)   

 
 
 
 

   434   

 
 
 

   506   

 
 
 

   (14.2)   

 
 

    TOTAL    

 
 

   $          4,069   

 
 
 

   $          3,997   

 
 
 

   1.8 %   

 
 
 
 

   $          7,835   

 
 
 

   $          8,098   

 
 
 

   (3.2) %   

 
 
 
 
    
 
 

  (1) U.S. includes the United States and U.S. territories.  

 
 

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

 
 

  (3) The three and six months ended October 28, 2022 includes $25 million and $45 million, respectively, of inorganic revenue related to the Intersect ENT acquisition, which is included in the reported results of the Specialty Therapies division of the Neuroscience portfolio. When excluding the impact of currency and the inorganic Intersect ENT revenue for three and six months ended October 28, 2022, revenue increased 1.2 percent organic and declined 3.8 percent organic, respectively.  

 
 
 

 

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 

   MEDTRONIC PLC   

 

   WORLD WIDE REVENUE: GEOGRAPHIC (1)(2)   

 

  (Unaudited)  

 
 
 
 

    SECOND QUARTER    

 
 
 
 

    SECOND QUARTER     YEAR-TO-DATE    

 
 
 

    REPORTED    

 
 
 
 
 

    CONSTANT
CURRENCY
 
 
 

 
 
 
 

    REPORTED    

 
 
 
 
 

    CONSTANT
CURRENCY
 
 
 

 
 

    (in millions)    

 
 

  FY23  

 
 
 

  FY22  

 
 
 

  Growth  

 
 
 

  Currency
Impact (3)
 

 
 
 

  FY23  

 
 
 

  Growth (4)  

 
 
 
 

  FY23  

 
 
 

  FY22  

 
 
 

  Growth  

 
 
 

  Currency
Impact (3)
 

 
 
 

  FY23  

 
 
 

  Growth (4)  

 
 

  U.S.  

 
 

  $     1,424  

 
 
 

  $     1,373  

 
 
 

  3.7 %  

 
 
 

  $         —  

 
 
 

  $     1,424  

 
 
 

  3.7 %  

 
 
 
 

  $     2,722  

 
 
 

  $     2,793  

 
 
 

  (2.5) %  

 
 
 

  $         —  

 
 
 

  $     2,722  

 
 
 

  (2.5) %  

 
 

  Non-U.S. Developed  

 
 

  802  

 
 
 

  948  

 
 
 

  (15.4)  

 
 
 

  (148)  

 
 
 

  950  

 
 
 

  0.2  

 
 
 
 

  1,694  

 
 
 

  1,952  

 
 
 

  (13.2)  

 
 
 

  (271)  

 
 
 

  1,965  

 
 
 

  0.7  

 
 

  Emerging Markets  

 
 

  546  

 
 
 

  506  

 
 
 

  7.9  

 
 
 

  (28)  

 
 
 

  574  

 
 
 

  13.4  

 
 
 
 

  1,070  

 
 
 

  972  

 
 
 

  10.1  

 
 
 

  (44)  

 
 
 

  1,114  

 
 
 

  14.6  

 
 

    Cardiovascular    

 
 

   2,773   

 
 
 

   2,827   

 
 
 

   (1.9)   

 
 
 

   (177)   

 
 
 

   2,950   

 
 
 

   4.4   

 
 
 
 

   5,486   

 
 
 

   5,717   

 
 
 

   (4.0)   

 
 
 

   (315)   

 
 
 

   5,801   

 
 
 

   1.5   

 
 

  U.S.  

 
 

  905  

 
 
 

  970  

 
 
 

  (6.7)  

 
 
 

  

 
 
 

  905  

 
 
 

  (6.7)  

 
 
 
 

  1,748  

 
 
 

  1,959  

 
 
 

  (10.8)  

 
 
 

  

 
 
 

  1,748  

 
 
 

  (10.8)  

 
 

  Non-U.S. Developed  

 
 

  719  

 
 
 

  841  

 
 
 

  (14.5)  

 
 
 

  (129)  

 
 
 

  848  

 
 
 

  0.8  

 
 
 
 

  1,485  

 
 
 

  1,710  

 
 
 

  (13.2)  

 
 
 

  (233)  

 
 
 

  1,718  

 
 
 

  0.5  

 
 

  Emerging Markets  

 
 

  446  

 
 
 

  488  

 
 
 

  (8.6)  

 
 
 

  (19)  

 
 
 

  465  

 
 
 

  (4.7)  

 
 
 
 

  838  

 
 
 

  951  

 
 
 

  (11.9)  

 
 
 

  (30)  

 
 
 

  868  

 
 
 

  (8.7)  

 
 

    Medical Surgical    

 
 

   2,070   

 
 
 

   2,299   

 
 
 

   (10.0)   

 
 
 

   (149)   

 
 
 

   2,219   

 
 
 

   (3.5)   

 
 
 
 

   4,071   

 
 
 

   4,621   

 
 
 

   (11.9)   

 
 
 

   (264)   

 
 
 

   4,335   

 
 
 

   (6.2)   

 
 

  U.S.  

 
 

  1,512  

 
 
 

  1,394  

 
 
 

  8.5  

 
 
 

  

 
 
 

  1,512  

 
 
 

  8.5  

 
 
 
 

  2,931  

 
 
 

  2,840  

 
 
 

  3.2  

 
 
 

  

 
 
 

  2,931  

 
 
 

  3.2  

 
 

  Non-U.S. Developed  

 
 

  382  

 
 
 

  433  

 
 
 

  (11.8)  

 
 
 

  (70)  

 
 
 

  452  

 
 
 

  4.4  

 
 
 
 

  788  

 
 
 

  898  

 
 
 

  (12.2)  

 
 
 

  (126)  

 
 
 

  914  

 
 
 

  1.8  

 
 

  Emerging Markets  

 
 

  292  

 
 
 

  309  

 
 
 

  (5.5)  

 
 
 

  (15)  

 
 
 

  307  

 
 
 

  (0.6)  

 
 
 
 

  582  

 
 
 

  602  

 
 
 

  (3.3)  

 
 
 

  (23)  

 
 
 

  605  

 
 
 

  0.5  

 
 

    Neuroscience    

 
 

   2,186   

 
 
 

   2,136   

 
 
 

   2.3   

 
 
 

   (85)   

 
 
 

   2,271   

 
 
 

   6.3   

 
 
 
 

   4,301   

 
 
 

   4,340   

 
 
 

   (0.9)   

 
 
 

   (149)   

 
 
 

   4,450   

 
 
 

   2.5   

 
 

  U.S.  

 
 

  228  

 
 
 

  261  

 
 
 

  (12.6)  

 
 
 

  

 
 
 

  228  

 
 
 

  (12.6)  

 
 
 
 

  434  

 
 
 

  506  

 
 
 

  (14.2)  

 
 
 

  

 
 
 

  434  

 
 
 

  (14.2)  

 
 

  Non-U.S. Developed  

 
 

  254  

 
 
 

  256  

 
 
 

  (0.8)  

 
 
 

  (43)  

 
 
 

  297  

 
 
 

  16.0  

 
 
 
 

  518  

 
 
 

  519  

 
 
 

  (0.2)  

 
 
 

  (76)  

 
 
 

  594  

 
 
 

  14.5  

 
 

  Emerging Markets  

 
 

  74  

 
 
 

  69  

 
 
 

  7.2  

 
 
 

  (4)  

 
 
 

  78  

 
 
 

  13.0  

 
 
 
 

  145  

 
 
 

  132  

 
 
 

  9.8  

 
 
 

  (4)  

 
 
 

  149  

 
 
 

  12.9  

 
 

    Diabetes    

 
 

   556   

 
 
 

   585   

 
 
 

   (5.0)   

 
 
 

   (47)   

 
 
 

   603   

 
 
 

   3.1   

 
 
 
 

   1,098   

 
 
 

   1,157   

 
 
 

   (5.1)   

 
 
 

   (80)   

 
 
 

   1,178   

 
 
 

   1.8   

 
 

  U.S.  

 
 

  4,069  

 
 
 

  3,997  

 
 
 

  1.8  

 
 
 

  

 
 
 

  4,069  

 
 
 

  1.8  

 
 
 
 

  7,835  

 
 
 

  8,098  

 
 
 

  (3.2)  

 
 
 

  

 
 
 

  7,835  

 
 
 

  (3.2)  

 
 

  Non-U.S. Developed  

 
 

  2,157  

 
 
 

  2,478  

 
 
 

  (13.0)  

 
 
 

  (390)  

 
 
 

  2,547  

 
 
 

  2.8  

 
 
 
 

  4,485  

 
 
 

  5,079  

 
 
 

  (11.7)  

 
 
 

  (705)  

 
 
 

  5,190  

 
 
 

  2.2  

 
 

  Emerging Markets  

 
 

  1,359  

 
 
 

  1,372  

 
 
 

  (0.9)  

 
 
 

  (66)  

 
 
 

  1,425  

 
 
 

  3.9  

 
 
 
 

  2,635  

 
 
 

  2,658  

 
 
 

  (0.9)  

 
 
 

  (101)  

 
 
 

  2,736  

 
 
 

  2.9  

 
 

    TOTAL    

 
 

   $     7,585   

 
 
 

   $     7,847   

 
 
 

   (3.3) %   

 
 
 

   $      (457)   

 
 
 

   $     8,042   

 
 
 

   2.5 %   

 
 
 
 

   $   14,955   

 
 
 

   $   15,835   

 
 
 

   (5.6) %   

 
 
 

   $      (808)   

 
 
 

   $   15,763   

 
 
 

   (0.5) %   

 
 
 
 
     
 
 

  (1) U.S. includes the United States and U.S. territories. Non-U.S. developed markets include Japan, Australia, New Zealand, Korea, Canada, and the countries of Western Europe. Emerging Markets include the countries of the Middle East, Africa, Latin America, Eastern Europe, and the countries of Asia that are not included in the non-U.S. developed markets, as previously defined.  

 
 

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

 
 

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

 
 

  (4) The three and six months ended October 28, 2022 includes $25 million and $45 million, respectively, of inorganic revenue related to the Intersect ENT acquisition, which is included in the reported results of the Specialty Therapies division of the Neuroscience portfolio. When excluding the impact of currency and the inorganic Intersect ENT revenue for three and six months ended October 28, 2022, revenue increased 2.2 percent organic and declined 0.7 percent organic, respectively.  

 
 
 

 

 
 
                                                                                                                                                                                      
 

   MEDTRONIC PLC   

 

   CONSOLIDATED STATEMENTS OF INCOME   

 

  (Unaudited)  

 
 
 
 

    Three months ended    

 
 
 

    Six months ended    

 
 

    (in millions, except per share data)    

 
 

    October 28,
2022
 
 
 

 
 
 

    October 29,
2021
 
 
 

 
 
 

    October 28,
2022
 
 
 

 
 
 

    October 29,
2021
 
 
 

 
 

    Net sales    

 
 

  $            7,585  

 
 
 

  $            7,847  

 
 
 

  $          14,955  

 
 
 

  $          15,835  

 
 

    Costs and expenses:    

 
 
 
 
 
 
 
 
 

  Cost of products sold, excluding amortization of intangible assets  

 
 

  2,535  

 
 
 

  2,497  

 
 
 

  5,051  

 
 
 

  5,095  

 
 

  Research and development expense  

 
 

  676  

 
 
 

  676  

 
 
 

  1,368  

 
 
 

  1,426  

 
 

  Selling, general, and administrative expense  

 
 

  2,617  

 
 
 

  2,615  

 
 
 

  5,184  

 
 
 

  5,163  

 
 

  Amortization of intangible assets  

 
 

  421  

 
 
 

  431  

 
 
 

  844  

 
 
 

  866  

 
 

  Restructuring charges, net  

 
 

  30  

 
 
 

  10  

 
 
 

  44  

 
 
 

  21  

 
 

  Certain litigation charges, net  

 
 

  

 
 
 

  34  

 
 
 

  

 
 
 

  60  

 
 

  Other operating (income) expense, net  

 
 

  (97)  

 
 
 

  21  

 
 
 

  (62)  

 
 
 

  781  

 
 

    Operating profit    

 
 

  1,404  

 
 
 

  1,563  

 
 
 

  2,528  

 
 
 

  2,422  

 
 

  Other non-operating income, net  

 
 

  (109)  

 
 
 

  (66)  

 
 
 

  (192)  

 
 
 

  (177)  

 
 

  Interest expense  

 
 

  118  

 
 
 

  136  

 
 
 

  282  

 
 
 

  273  

 
 

    Income before income taxes    

 
 

  1,395  

 
 
 

  1,493  

 
 
 

  2,438  

 
 
 

  2,326  

 
 

    Income tax provision    

 
 

  959  

 
 
 

  176  

 
 
 

  1,072  

 
 
 

  240  

 
 

    Net income    

 
 

  435  

 
 
 

  1,317  

 
 
 

  1,367  

 
 
 

  2,086  

 
 

    Net income attributable to noncontrolling interests    

 
 

  (8)  

 
 
 

  (6)  

 
 
 

  (10)  

 
 
 

  (12)  

 
 

    Net income attributable to Medtronic    

 
 

  $               427  

 
 
 

  $            1,311  

 
 
 

  $            1,356  

 
 
 

  $            2,074  

 
 

    Basic earnings per share    

 
 

  $              0.32  

 
 
 

  $              0.97  

 
 
 

  $              1.02  

 
 
 

  $              1.54  

 
 

    Diluted earnings per share    

 
 

  $              0.32  

 
 
 

  $              0.97  

 
 
 

  $              1.02  

 
 
 

  $              1.53  

 
 

    Basic weighted average shares outstanding    

 
 

  1,329.4  

 
 
 

  1,345.1  

 
 
 

  1,329.4  

 
 
 

  1,344.8  

 
 

    Diluted weighted average shares outstanding    

 
 

  1,332.0  

 
 
 

  1,355.3  

 
 
 

  1,333.3  

 
 
 

  1,355.9  

 
 
 
 
  
 
 

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

 
 
 

 

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 

   MEDTRONIC PLC   

 

   GAAP TO NON-GAAP RECONCILIATIONS (1)   

 

  (Unaudited)  

 
 
 
 

    Three months ended October 28, 2022    

 
 

    (in millions, except per share data)    

 
 

    Net Sales    

 
 
 

    Cost of
Products Sold
 
 
 

 
 
 

    Gross Margin
Percent
 
 
 

 
 
 

    Operating
Profit
 
 
 

 
 
 

    Operating Profit
Percent
 
 
 

 
 
 

    Income Before
Income Taxes
 
 
 

 
 
 

    Net Income
Attributable
to Medtronic
 
 
 

 
 
 

    Diluted    

 

    EPS    

 
 
 

    Effective
Tax Rate
 
 
 

 
 

    GAAP    

 
 

  $  7,585  

 
 
 

  $   2,535  

 
 
 

  66.6 %  

 
 
 

  $     1,404  

 
 
 

  18.5 %  

 
 
 

  $      1,395  

 
 
 

  $          427  

 
 
 

  $   0.32  

 
 
 

  68.7 %  

 
 

  Non-GAAP Adjustments:  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Restructuring and associated costs (2)  

 
 

  

 
 
 

  (21)  

 
 
 

  0.3  

 
 
 

  95  

 
 
 

  1.3  

 
 
 

  95  

 
 
 

  76  

 
 
 

  0.06  

 
 
 

  20.0  

 
 

  Acquisition-related items (3)  

 
 

  

 
 
 

  (13)  

 
 
 

  0.2  

 
 
 

  2  

 
 
 

  

 
 
 

  2  

 
 
 

  (6)  

 
 
 

  

 
 
 

  400.0  

 
 

  (Gain)/loss on minority investments (4)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  (11)  

 
 
 

  (11)  

 
 
 

  (0.01)  

 
 
 

  

 
 

  Medical device regulations (5)  

 
 

  

 
 
 

  (22)  

 
 
 

  0.3  

 
 
 

  37  

 
 
 

  0.5  

 
 
 

  37  

 
 
 

  30  

 
 
 

  0.02  

 
 
 

  18.9  

 
 

  Amortization of intangible assets  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  421  

 
 
 

  5.6  

 
 
 

  421  

 
 
 

  356  

 
 
 

  0.27  

 
 
 

  15.4  

 
 

  RCS impairments / costs (6)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  24  

 
 
 

  0.3  

 
 
 

  24  

 
 
 

  24  

 
 
 

  0.02  

 
 
 

  4.2  

 
 

  Exit of business (7)  

 
 

  

 
 
 

  (26)  

 
 
 

  0.3  

 
 
 

  37  

 
 
 

  0.5  

 
 
 

  37  

 
 
 

  37  

 
 
 

  0.03  

 
 
 

  

 
 

  Certain tax adjustments, net (8)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  793  

 
 
 

  0.60  

 
 
 

  

 
 

    Non-GAAP    

 
 

  $  7,585  

 
 
 

  $   2,454  

 
 
 

  67.6 %  

 
 
 

  $     2,020  

 
 
 

  26.6 %  

 
 
 

  $      1,999  

 
 
 

  $       1,725  

 
 
 

  $   1.30  

 
 
 

  13.3 %  

 
 

  Currency impact  

 
 

  457  

 
 
 

  150  

 
 
 

  

 
 
 

  20  

 
 
 

  (1.2)  

 
 
 
 
 
 
 

  0.01  

 
 
 
 

    Currency Adjusted    

 
 

  $  8,042  

 
 
 

  $   2,604  

 
 
 

  67.6 %  

 
 
 

  $     2,040  

 
 
 

  25.4 %  

 
 
 
 
 
 
 

  $   1.31  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

    Three months ended October 29, 2021    

 
 

    (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    

 
 

  $  7,847  

 
 
 

  $   2,497  

 
 
 

  68.2 %  

 
 
 

  $     1,563  

 
 
 

  19.9 %  

 
 
 

  $      1,493  

 
 
 

  $       1,311  

 
 
 

  $   0.97  

 
 
 

  11.8 %  

 
 

  Non-GAAP Adjustments:  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Restructuring and associated costs (2)  

 
 

  

 
 
 

  (31)  

 
 
 

  0.4  

 
 
 

  77  

 
 
 

  1.0  

 
 
 

  77  

 
 
 

  62  

 
 
 

  0.05  

 
 
 

  19.5  

 
 

  Acquisition-related items (3)  

 
 

  

 
 
 

  (5)  

 
 
 

  0.1  

 
 
 

  (13)  

 
 
 

  (0.2)  

 
 
 

  (13)  

 
 
 

  (15)  

 
 
 

  (0.01)  

 
 
 

  (15.4)  

 
 

  Certain litigation charges  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  34  

 
 
 

  0.4  

 
 
 

  34  

 
 
 

  30  

 
 
 

  0.02  

 
 
 

  11.8  

 
 

  (Gain)/loss on minority investments (4)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  6  

 
 
 

  6  

 
 
 

  

 
 
 

  

 
 

  Medical device regulations (5)  

 
 

  

 
 
 

  (15)  

 
 
 

  0.2  

 
 
 

  24  

 
 
 

  0.3  

 
 
 

  24  

 
 
 

  20  

 
 
 

  0.01  

 
 
 

  16.7  

 
 

  Amortization of intangible assets  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  431  

 
 
 

  5.5  

 
 
 

  431  

 
 
 

  361  

 
 
 

  0.27  

 
 
 

  16.0  

 
 

  Certain tax adjustments, net (9)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  16  

 
 
 

  0.01  

 
 
 

  

 
 

    Non-GAAP    

 
 

  $  7,847  

 
 
 

  $   2,447  

 
 
 

  68.8 %  

 
 
 

  $     2,116  

 
 
 

  27.0 %  

 
 
 

  $      2,052  

 
 
 

  $       1,792  

 
 
 

  $   1.32  

 
 
 

  12.4 %  

 
 
 
 
                    
 
 

  See description of non-GAAP financial measures contained in the press release dated November 22, 2022.  

 
 

  (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 and consulting expenses.  

 
 

  (3)  

 
 

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

 
 

  (4)  

 
 

  We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.  

 
 

  (5)  

 
 

  The charges represent incremental costs of complying with the new European Union (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 charges predominantly include impairments related to changes in the carrying amount of the disposal group and other associated costs, as a result of the anticipated sale of half of the Company's Renal Care Solutions (RCS) business related to the May 25, 2022 agreement with DaVita Inc.  

 
 

  (7)  

 
 

  The charges relate to the exit of a business and are primarily comprised of  inventory write-downs.  

 
 

  (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.  

 
 

  (9)  

 
 

  The charge includes the amortization on previously established deferred tax assets from intercompany intellectual property transactions.  

 
 
 

 

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 

   MEDTRONIC PLC   

 

   GAAP TO NON-GAAP RECONCILIATIONS (1)   

 

  (Unaudited)  

 
 
 
 

    Six months ended October 28, 2022    

 
 

    (in millions, except per share data)    

 
 

    Net Sales    

 
 
 

    Cost of
Products Sold
 
 
 

 
 
 

    Gross Margin
Percent
 
 
 

 
 
 

    Operating
Profit
 
 
 

 
 
 

    Operating Profit
Percent
 
 
 

 
 
 

    Income Before
Income Taxes
 
 
 

 
 
 

    Net Income
attributable
to Medtronic
 
 
 

 
 
 

    Diluted    

 

    EPS    

 
 
 

    Effective
Tax Rate
 
 
 

 
 

    GAAP    

 
 

  $ 14,955  

 
 
 

  $   5,051  

 
 
 

  66.2 %  

 
 
 

  $     2,528  

 
 
 

  16.9 %  

 
 
 

  $    2,438  

 
 
 

  $       1,356  

 
 
 

  $     1.02  

 
 
 

  44.0 %  

 
 

  Non-GAAP Adjustments:  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Restructuring and associated costs (2)  

 
 

  

 
 
 

  (41)  

 
 
 

  0.3  

 
 
 

  171  

 
 
 

  1.1  

 
 
 

  171  

 
 
 

  136  

 
 
 

  0.10  

 
 
 

  20.5  

 
 

  Acquisition-related items (3)  

 
 

  

 
 
 

  (24)  

 
 
 

  0.2  

 
 
 

  38  

 
 
 

  0.3  

 
 
 

  38  

 
 
 

  23  

 
 
 

  0.02  

 
 
 

  36.8  

 
 

  (Gain)/loss on minority investments (4)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  (15)  

 
 
 

  (15)  

 
 
 

  (0.01)  

 
 
 

  

 
 

  Medical device regulations (5)  

 
 

  

 
 
 

  (40)  

 
 
 

  0.3  

 
 
 

  70  

 
 
 

  0.5  

 
 
 

  70  

 
 
 

  56  

 
 
 

  0.04  

 
 
 

  20.0  

 
 

  Amortization of intangible assets  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  844  

 
 
 

  5.6  

 
 
 

  844  

 
 
 

  715  

 
 
 

  0.54  

 
 
 

  15.3  

 
 

  RCS impairments / costs (6)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  99  

 
 
 

  0.7  

 
 
 

  99  

 
 
 

  97  

 
 
 

  0.07  

 
 
 

  2.0  

 
 

  Debt redemption premium and other charges (7)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  53  

 
 
 

  42  

 
 
 

  0.03  

 
 
 

  20.8  

 
 

  Exit of business (8)  

 
 

  

 
 
 

  (26)  

 
 
 

  0.2  

 
 
 

  37  

 
 
 

  0.2  

 
 
 

  37  

 
 
 

  37  

 
 
 

  0.03  

 
 
 

  

 
 

  Certain tax adjustments, net (9)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  780  

 
 
 

  0.59  

 
 
 

  

 
 

    Non-GAAP    

 
 

  $ 14,955  

 
 
 

  $   4,921  

 
 
 

  67.1 %  

 
 
 

  $     3,785  

 
 
 

  25.3 %  

 
 
 

  $    3,733  

 
 
 

  $       3,226  

 
 
 

  $     2.42  

 
 
 

  13.3 %  

 
 

  Currency impact  

 
 

  808  

 
 
 

  232  

 
 
 

  0.2  

 
 
 

  71  

 
 
 

  (0.8)  

 
 
 
 
 
 
 

  0.04  

 
 
 
 

    Currency Adjusted    

 
 

  $ 15,763  

 
 
 

  $   5,153  

 
 
 

  67.3 %  

 
 
 

  $     3,856  

 
 
 

  24.5 %  

 
 
 
 
 
 
 

  $     2.46  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

    Six months ended October 29, 2021    

 
 

    (in millions, except per share data)    

 
 

    Net Sales    

 
 
 

    Cost of
Products Sold
 
 
 

 
 
 

    Gross Margin
Percent
 
 
 

 
 
 

    Operating
Profit
 
 
 

 
 
 

    Operating Profit
Percent
 
 
 

 
 
 

    Income Before
Income Taxes
 
 
 

 
 
 

    Net Income
attributable
to Medtronic
 
 
 

 
 
 

    Diluted    

 

    EPS    

 
 
 

    Effective
Tax Rate
 
 
 

 
 

    GAAP    

 
 

  $ 15,835  

 
 
 

  $   5,095  

 
 
 

  67.8 %  

 
 
 

  $     2,422  

 
 
 

  15.3 %  

 
 
 

  $    2,326  

 
 
 

  $       2,074  

 
 
 

  $     1.53  

 
 
 

  10.3 %  

 
 

  Non-GAAP Adjustments:  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Restructuring and associated costs (2)  

 
 

  

 
 
 

  (64)  

 
 
 

  0.4  

 
 
 

  159  

 
 
 

  1.0  

 
 
 

  159  

 
 
 

  128  

 
 
 

  0.09  

 
 
 

  19.5  

 
 

  Acquisition-related items (3)  

 
 

  

 
 
 

  (9)  

 
 
 

  0.1  

 
 
 

  6  

 
 
 

  

 
 
 

  6  

 
 
 

  3  

 
 
 

  

 
 
 

  50.0  

 
 

  Certain litigation charges  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  60  

 
 
 

  0.4  

 
 
 

  60  

 
 
 

  51  

 
 
 

  0.04  

 
 
 

  15.0  

 
 

  (Gain)/loss on minority investments (4)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  (25)  

 
 
 

  (22)  

 
 
 

  (0.02)  

 
 
 

  

 
 

  Medical device regulations (5)  

 
 

  

 
 
 

  (26)  

 
 
 

  0.2  

 
 
 

  45  

 
 
 

  0.3  

 
 
 

  45  

 
 
 

  36  

 
 
 

  0.03  

 
 
 

  20.0  

 
 

  Amortization of intangible assets  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  866  

 
 
 

  5.5  

 
 
 

  866  

 
 
 

  728  

 
 
 

  0.54  

 
 
 

  16.1  

 
 

  MCS impairments / costs (10)  

 
 

  

 
 
 

  (58)  

 
 
 

  0.4  

 
 
 

  726  

 
 
 

  4.6  

 
 
 

  726  

 
 
 

  564  

 
 
 

  0.42  

 
 
 

  22.3  

 
 

  Certain tax adjustments, net (11)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  69  

 
 
 

  0.05  

 
 
 

  

 
 

    Non-GAAP (1)    

 
 

  $ 15,835  

 
 
 

  $   4,938  

 
 
 

  68.8 %  

 
 
 

  $     4,284  

 
 
 

  27.1 %  

 
 
 

  $    4,163  

 
 
 

  $       3,629  

 
 
 

  $     2.68  

 
 
 

  12.6 %  

 
 
 
 
                        
 
 

  See description of non-GAAP financial measures contained in the press release dated November 22, 2022.  

 
 

  (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. Starting with the quarter ended April 29, 2022, the Company will no longer adjust non-GAAP financial measures for certain license payments for, or acquisitions of, technology not approved by regulators due to recent industry guidance from the U.S. Securities and Exchange Commission. Historical non-GAAP financial measures presented in our earnings release have been recast for comparability.  

 
 

  (2)  

 
 

  Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses.  

 
 

  (3)  

 
 

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

 
 

  (4)  

 
 

  We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.  

 
 

  (5)  

 
 

  The charges represent incremental costs of complying with the new European Union (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 charges predominantly include non-cash pre-tax impairments, primarily related to goodwill, and other associated costs, as a result of the anticipated sale of half of the Company's Renal Care Solutions (RCS) business related to the May 25, 2022 agreement with DaVita Inc.  

 
 

  (7)  

 
 

  The charges relate to the early redemption of approximately $2.3 billion of debt and were recorded within interest expense within the consolidated statements of income.  

 
 

  (8)  

 
 

  The charges relate to the exit of a business and are primarily comprised of  inventory write-downs.  

 
 

  (9)  

 
 

  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.  

 
 

  (10)  

 
 

  The charges relate to the Company's June 2021 decision to stop the distribution and sale of the Medtronic HVAD System within the Mechanical Circulatory Support Operating Unit (MCS). The charges included $515 million of non-cash impairments, primarily related to $409 million of intangible asset impairments, as well as $211 million for commitments and obligations in connection with the decision, including customer support obligations, restructuring, and other associated costs. Medtronic is committed to serving the needs of patients currently implanted with the HVAD System.  

 
 

  (11)  

 
 

  The charge is associated with a change in the company's permanently reinvestment assertion on certain historical earnings and the amortization on previously established deferred tax assets from intercompany intellectual property transactions.  

 
 
 

 

 
 
                                                                                                                                                                                                    
 

   MEDTRONIC PLC   

 

   GAAP TO NON-GAAP RECONCILIATIONS (1)   

 

  (Unaudited)  

 
 
 
 

    Three months ended October 28, 2022    

 
 

    (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
Expense (Income), net
 
 
 

 
 
 

    Other Operating
Expense, net as a % of
Net Sales
 
 
 

 
 
 

    Other Non-Operating
(Income) Expense, net
 
 
 

 
 

    GAAP    

 
 

  $      7,585  

 
 
 

  $     2,617  

 
 
 

  34.5 %  

 
 
 

  $       676  

 
 
 

  8.9 %  

 
 
 

  $         (97)  

 
 
 

  (1.3) %  

 
 
 

  $          (109)  

 
 

  Non-GAAP Adjustments:  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Restructuring and associated costs (2)  

 
 

  

 
 
 

  (43)  

 
 
 

  (0.6)  

 
 
 

  (2)  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 

  Acquisition-related items (3)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  11  

 
 
 

  0.1  

 
 
 

  

 
 

  Medical device regulations (4)  

 
 

  

 
 
 

  (1)  

 
 
 

  

 
 
 

  (15)  

 
 
 

  (0.2)  

 
 
 

  

 
 
 

  

 
 
 

  

 
 

  RCS impairments / costs (5)  

 
 

  

 
 
 

  (9)  

 
 
 

  (0.1)  

 
 
 

  

 
 
 

  

 
 
 

  (15)  

 
 
 

  (0.2)  

 
 
 

  

 
 

  Gain/(loss) on minority investments (6)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  11  

 
 

  Exit of business (7)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  (11)  

 
 
 

  (0.1)  

 
 
 

  

 
 

    Non-GAAP    

 
 

  $      7,585  

 
 
 

  $     2,563  

 
 
 

  33.8 %  

 
 
 

  $       659  

 
 
 

  8.7 %  

 
 
 

  $       (112)  

 
 
 

  (1.5) %  

 
 
 

  $           (98)  

 
 

  Currency impact  

 
 

  457  

 
 
 

  132  

 
 
 

  (0.3)  

 
 
 

  13  

 
 
 

  (0.3)  

 
 
 

  142  

 
 
 

  1.9  

 
 
 

  (4)  

 
 

    Currency Adjusted    

 
 

  $      8,042  

 
 
 

  $     2,695  

 
 
 

  33.5 %  

 
 
 

  $       672  

 
 
 

  8.4 %  

 
 
 

  $           30  

 
 
 

  0.4 %  

 
 
 

  $          (102)  

 
 
 

 

 
 
                                                                                                                                                                                                  
 
 

    Six months ended October 28, 2022    

 
 

    (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
Expense (Income), net
 
 
 

 
 
 

    Other Operating
Expense, net as a % of
Net Sales
 
 
 

 
 
 

    Other Non-Operating
(Income) Expense, net
 
 
 

 
 

    GAAP    

 
 

  $    14,955  

 
 
 

  $     5,184  

 
 
 

  34.7 %  

 
 
 

  $    1,368  

 
 
 

  9.1 %  

 
 
 

  $         (62)  

 
 
 

  (0.4) %  

 
 
 

  $          (192)  

 
 

  Non-GAAP Adjustments:  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Restructuring and associated costs (2)  

 
 

  

 
 
 

  (85)  

 
 
 

  (0.6)  

 
 
 

  (2)  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 

  Acquisition-related items (3)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  (13)  

 
 
 

  (0.1)  

 
 
 

  

 
 

  Medical device regulations (4)  

 
 

  

 
 
 

  (1)  

 
 
 

  

 
 
 

  (29)  

 
 
 

  (0.2)  

 
 
 

  

 
 
 

  

 
 
 

  

 
 

  RCS impairments / costs (5)  

 
 

  

 
 
 

  (16)  

 
 
 

  (0.1)  

 
 
 

  

 
 
 

  

 
 
 

  (82)  

 
 
 

  (0.5)  

 
 
 

  

 
 

  Gain/(loss) on minority investments (6)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  15  

 
 

  Exit of business (7)  

 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  

 
 
 

  (11)  

 
 
 

  (0.1)  

 
 
 

  

 
 

    Non-GAAP    

 
 

  $    14,955  

 
 
 

  $     5,081  

 
 
 

  34.0 %  

 
 
 

  $    1,337  

 
 
 

  8.9 %  

 
 
 

  $       (169)  

 
 
 

  (1.1) %  

 
 
 

  $          (177)  

 
 

  Currency impact  

 
 

  808  

 
 
 

  227  

 
 
 

  (0.3)  

 
 
 

  22  

 
 
 

  (0.3)  

 
 
 

  256  

 
 
 

  1.7  

 
 
 

  (6)  

 
 

    Currency Adjusted    

 
 

  $    15,763  

 
 
 

  $     5,308  

 
 
 

  33.7 %  

 
 
 

  $    1,359  

 
 
 

  8.6 %  

 
 
 

  $           87  

 
 
 

  0.6 %  

 
 
 

  $          (183)  

 
 
 
 
                
 
 

  See description of non-GAAP financial measures contained in the press release dated November 22, 2022.  

 
 

  (1)  

 
 

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

 
 

  (2)  

 
 

  Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses.  

 
 

  (3)  

 
 

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

 
 

  (4)  

 
 

  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.  

 
 

  (5)  

 
 

  The charges predominantly include non-cash pre-tax impairments, primarily related to goodwill, and other associated costs, as a result of the anticipated sale of half of the Company's Renal Care Solutions (RCS) business related to the May 25, 2022 agreement with DaVita Inc.  

 
 

  (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.  

 
 

  (7)  

 
 

  Associated costs related to the exit of a business.  

 
 
 

 

 
 
                      
 

   MEDTRONIC PLC   

 

   GAAP TO NON-GAAP RECONCILIATIONS (1)   

 

  (Unaudited)  

 
 
 
 

    Six months ended    

 
 
 

    Six months ended    

 
 

    (in millions)    

 
 

    October 28, 2022    

 
 
 

    October 29, 2021    

 
 

    Net cash provided by operating activities    

 
 

  $                     2,005  

 
 
 

  $                     3,061  

 
 

  Additions to property, plant, and equipment  

 
 

  (749)  

 
 
 

  (649)  

 
 

    Free Cash Flow (2)    

 
 

  $                     1,256  

 
 
 

  $                     2,412  

 
 
 
 
      
 
 

  See description of non-GAAP financial measures contained in the press release dated November 22, 2022.  

 
 

  (1)  

 
 

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

 
 

  (2)  

 
 

  Free cash flow represents operating cash flows less property, plant, and equipment additions.  

 
 
 

 

 
 
                                                                                                                                                                                                               
 

   MEDTRONIC PLC   

 

   CONSOLIDATED BALANCE SHEETS   

 

  (Unaudited)  

 
 
 

    (in millions)    

 
 
 

    October 28, 2022    

 
 
 

    April 29, 2022    

 
 

     ASSETS     

 
 
 
 
 
 

    Current assets:    

 
 
 
 
 
 

  Cash and cash equivalents  

 
 
 

  $                4,828  

 
 
 

  $                3,714  

 
 

  Investments  

 
 
 

  6,602  

 
 
 

  6,859  

 
 

  Accounts receivable, less allowances and credit losses of $203 and $230, respectively  

 
 
 

  5,626  

 
 
 

  5,551  

 
 

  Inventories, net  

 
 
 

  5,055  

 
 
 

  4,616  

 
 

  Other current assets  

 
 
 

  3,287  

 
 
 

  2,318  

 
 

    Total current assets    

 
 
 

  25,398  

 
 
 

  23,059  

 
 

  Property, plant, and equipment  

 
 
 

  13,497  

 
 
 

  13,365  

 
 

  Accumulated depreciation  

 
 
 

  (8,199)  

 
 
 

  (7,952)  

 
 

    Property, plant, and equipment, net    

 
 
 

  5,298  

 
 
 

  5,413  

 
 

    Goodwill    

 
 
 

  40,417  

 
 
 

  40,502  

 
 

    Other intangible assets, net    

 
 
 

  15,655  

 
 
 

  15,595  

 
 

    Tax assets    

 
 
 

  3,350  

 
 
 

  3,403  

 
 

    Other assets    

 
 
 

  3,124  

 
 
 

  3,008  

 
 

    Total assets    

 
 
 

  $             93,241  

 
 
 

  $             90,981  

 
 

     LIABILITIES AND EQUITY     

 
 
 
 
 
 

    Current liabilities:    

 
 
 
 
 
 

  Current debt obligations  

 
 
 

  $                5,864  

 
 
 

  $                3,742  

 
 

  Accounts payable  

 
 
 

  2,198  

 
 
 

  2,276  

 
 

  Accrued compensation  

 
 
 

  1,721  

 
 
 

  2,121  

 
 

  Accrued income taxes  

 
 
 

  651  

 
 
 

  704  

 
 

  Other accrued expenses  

 
 
 

  4,031  

 
 
 

  3,551  

 
 

    Total current liabilities    

 
 
 

  14,465  

 
 
 

  12,394  

 
 

    Long-term debt    

 
 
 

  20,753  

 
 
 

  20,372  

 
 

    Accrued compensation and retirement benefits    

 
 
 

  1,048  

 
 
 

  1,113  

 
 

    Accrued income taxes    

 
 
 

  2,614  

 
 
 

  2,087  

 
 

    Deferred tax liabilities    

 
 
 

  871  

 
 
 

  884  

 
 

    Other liabilities    

 
 
 

  1,435  

 
 
 

  1,410  

 
 

    Total liabilities    

 
 
 

  41,184  

 
 
 

  38,260  

 
 

    Commitments and contingencies    

 
 
 
 
 
 

    Shareholders' equity:    

 
 
 
 
 
 

  Ordinary shares— par value  $0.0001, 2.6 billion shares authorized, 1,330,148,578 and
1,330,743,395 shares issued and outstanding, respectively
 

 
 
 

  

 
 
 

  

 
 

  Additional paid-in capital  

 
 
 

  24,442  

 
 
 

  24,566  

 
 

  Retained earnings  

 
 
 

  29,799  

 
 
 

  30,250  

 
 

  Accumulated other comprehensive loss  

 
 
 

  (2,361)  

 
 
 

  (2,265)  

 
 

    Total shareholders' equity    

 
 
 

  51,880  

 
 
 

  52,551  

 
 

  Noncontrolling interests  

 
 
 

  177  

 
 
 

  171  

 
 

    Total equity    

 
 
 

  52,057  

 
 
 

  52,722  

 
 

    Total liabilities and equity    

 
 
 

  $             93,241  

 
 
 

  $             90,981  

 
 
 
 
  
 
 

   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)  

 
 
 
 
 

    Six months ended    

 
 

    (in millions)    

 
 
 

    October 28, 2022    

 
 
 

    October 29, 2021    

 
 

    Operating Activities:    

 
 
 
 
 
 

  Net income  

 
 
 

  $                  1,367  

 
 
 

  $                  2,086  

 
 

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

 
 
 
 
 
 

  Depreciation and amortization  

 
 
 

  1,339  

 
 
 

  1,347  

 
 

  Provision for credit losses  

 
 
 

  41  

 
 
 

  34  

 
 

  Deferred income taxes  

 
 
 

  (92)  

 
 
 

  (78)  

 
 

  Stock-based compensation  

 
 
 

  199  

 
 
 

  209  

 
 

  Loss on debt extinguishment  

 
 
 

  53  

 
 
 

  

 
 

  MCS asset impairment and inventory write-down  

 
 
 

  

 
 
 

  515  

 
 

  Other, net  

 
 
 

  148  

 
 
 

  130  

 
 

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

 
 
 
 
 
 

  Accounts receivable, net  

 
 
 

  (346)  

 
 
 

  (171)  

 
 

  Inventories, net  

 
 
 

  (784)  

 
 
 

  (156)  

 
 

  Accounts payable and accrued liabilities  

 
 
 

  (14)  

 
 
 

  (446)  

 
 

  Other operating assets and liabilities  

 
 
 

  94  

 
 
 

  (409)  

 
 

    Net cash provided by operating activities    

 
 
 

  2,005  

 
 
 

  3,061  

 
 

    Investing Activities:    

 
 
 
 
 
 

  Acquisitions, net of cash acquired  

 
 
 

  (1,867)  

 
 
 

  (91)  

 
 

  Additions to property, plant, and equipment  

 
 
 

  (749)  

 
 
 

  (649)  

 
 

  Purchases of investments  

 
 
 

  (3,743)  

 
 
 

  (5,311)  

 
 

  Sales and maturities of investments  

 
 
 

  3,609  

 
 
 

  4,637  

 
 

  Other investing activities, net  

 
 
 

  19  

 
 
 

  (79)  

 
 

    Net cash used in investing activities    

 
 
 

  (2,731)  

 
 
 

  (1,493)  

 
 

    Financing Activities:    

 
 
 
 
 
 

  Change in current debt obligations, net  

 
 
 

  349  

 
 
 

  

 
 

  Proceeds from short-term borrowings (maturities greater than 90 days)  

 
 
 

  2,284  

 
 
 

  

 
 

  Issuance of long-term debt  

 
 
 

  3,430  

 
 
 

  

 
 

  Payments on long-term debt  

 
 
 

  (2,311)  

 
 
 

  (1)  

 
 

  Dividends to shareholders  

 
 
 

  (1,807)  

 
 
 

  (1,693)  

 
 

  Issuance of ordinary shares  

 
 
 

  153  

 
 
 

  274  

 
 

  Repurchase of ordinary shares  

 
 
 

  (477)  

 
 
 

  (744)  

 
 

  Other financing activities  

 
 
 

  443  

 
 
 

  (46)  

 
 

    Net cash provided by (used in) financing activities    

 
 
 

  2,064  

 
 
 

  (2,210)  

 
 

  Effect of exchange rate changes on cash and cash equivalents  

 
 
 

  (223)  

 
 
 

  (51)  

 
 

    Net change in cash and cash equivalents    

 
 
 

  1,114  

 
 
 

  (693)  

 
 

  Cash and cash equivalents at beginning of period  

 
 
 

  3,714  

 
 
 

  3,593  

 
 

    Cash and cash equivalents at end of period    

 
 
 

  $                  4,828  

 
 
 

  $                  2,900  

 
 
 
 
 
 
 

    Supplemental Cash Flow Information    

 
 
 
 
 
 

  Cash paid for:  

 
 
 
 
 
 

  Income taxes  

 
 
 

  $                     821  

 
 
 

  $                     615  

 
 

  Interest  

 
 
 

  234  

 
 
 

  280  

 
 
 
 
  
 
 

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

 
 
 

 

 

   About Medtronic
 
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Dublin, Ireland , is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE:MDT), visit www.Medtronic.com and follow @Medtronic on Twitter and LinkedIn .

 

   FORWARD LOOKING STATEMENTS
 
  This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation and 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, as filed with the U.S. Securities and Exchange Commission. 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 figures increasing, decreasing or remaining flat are in comparison to fiscal year 2022.  

 

  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.   Starting with the quarter ended April 29, 2022 , the company no longer adjusts non-GAAP financial measures for certain license payments for, or acquisitions of, technology not approved by regulators. Historical non-GAAP financial measures have been recast for comparability.   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  

 
 
 

 Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/medtronic-reports-second-quarter-fiscal-2023-financial-results-301684601.html  

 

SOURCE Medtronic plc

 

 

 

 Cision View original content to download multimedia: https://www.newswire.ca/en/releases/archive/November2022/22/c0978.html  

 
 

News Provided by Canada Newswire via QuoteMedia

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ATCO Ltd. (TSX: ACO.X) (TSX: ACO.Y)

 
 

  2024 ATCO AGM (CNW Group/ATCO Ltd.) 

 

ATCO Ltd. (ATCO) will hold its 57th Annual General Meeting of share owners at 10 a.m. MDT on Wednesday , May 15, 2024. In addition to the formal business of the meeting, attendees will hear management's view of ATCO's full year 2023 and first quarter 2024 operational and financial performance.

 

At this year's meeting, members of the ATCO executive leadership team will also outline growth strategies and goals for ATCO Structures, ATCO EnPower and ATCO Energy Systems.

 

Attendees will hear from:

 
  •    Nancy Southern , Chair & Chief Executive Officer  
  •  
  •    Katie Patrick , Executive Vice President, Chief Financial & Investment Officer  
  •  
  •    Adam Beattie , President, ATCO Structures  
  •  
  •    Bob Myles , Chief Operating Officer, ATCO EnPower  
  •  
  •    Wayne Stensby , Chief Operating Officer, ATCO Energy Systems  
  •  

Share owners and interested parties can view the meeting virtually using Microsoft Teams via this link using a web browser (Chrome, Safari, Edge or Firefox) on a smartphone, tablet or computer. Using Internet Explorer is not recommended as it is no longer supported and may not function properly.

 

Attendees who are share owners or proxyholders wishing to vote their shares should review the information contained in the ATCO Management Proxy Circular dated March 11, 2024 , beginning on page one.

 

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  Investor & Analyst Inquiries:  
Colin Jackson
Senior Vice President, Finance, Treasury & Sustainability
  Colin.Jackson@atco.com   
(403) 808 2636

 

  Media Inquiries:
  Kurt Kadatz  
Director, Corporate Communications
  Kurt.Kadatz@atco.com   
(587) 228 4571

 

SOURCE ATCO Ltd.

 

 

 

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