MEDTRONIC PLC

WORLD WIDE REVENUE(1)

(Unaudited)

FOURTH QUARTER

REPORTED

ORGANIC

(in millions)

FY24

FY23

Growth

Currency

Adjusted

Adjusted

Adjusted

Impact(3)

FY24(4)

FY23(5)

Growth

Cardiovascular

$

3,130

$

3,302

(5.2)%

$

(28)

$

3,158

$

3,037

4.0 %

Cardiac Rhythm & Heart Failure

1,587

1,567

1.3

(15)

1,602

1,567

2.2

Structural Heart & Aortic

883

1,105

(20.1)

(6)

889

840

5.8

Coronary & Peripheral Vascular

660

631

4.6

(7)

667

631

5.7

Neuroscience

2,545

2,410

5.6

(21)

2,566

2,410

6.5

Cranial & Spinal Technologies

1,291

1,198

7.8

(11)

1,302

1,198

8.7

Specialty Therapies

778

763

2.0

(9)

787

763

3.1

Neuromodulation

475

449

5.8

(1)

476

449

6.0

Medical Surgical

2,198

2,124

3.5

(22)

2,220

2,124

4.5

Surgical & Endoscopy

1,705

1,638

4.1

(15)

1,720

1,638

5.0

Acute Care & Monitoring

492

486

1.2

(6)

498

486

2.5

Diabetes

660

595

10.9

(1)

661

595

11.1

Other (2)

57

114

(50.0)

(3)

-

-

-

TOTAL

$

8,589

$

8,544

0.5 %

$

(75)

$

8,604

$

8,165

5.4 %

FISCAL YEAR

REPORTED

ORGANIC

FY24

FY23

Growth

Currency

Adjusted

Adjusted

Adjusted

Impact(3)

FY24(4)

FY23(5)

Growth

$

11,831

$

11,522

2.7 %

$

12

$

11,819

$

11,257

5.0 %

5,995

5,783

3.7

11

5,984

5,783

3.5

3,358

3,363

(0.1)

11

3,347

3,098

8.0

2,478

2,375

4.3

(10)

2,488

2,375

4.8

9,406

8,959

5.0

(16)

9,422

8,959

5.2

4,756

4,451

6.9

(11)

4,767

4,451

7.1

2,905

2,815

3.2

(12)

2,917

2,815

3.6

1,746

1,693

3.1

7

1,739

1,693

2.7

8,417

7,989

5.4

16

8,512

8,127

4.7

6,508

6,152

5.8

20

6,488

6,152

5.5

1,908

1,837

3.9

(4)

2,024

1,975

2.5

2,488

2,262

10.0

31

2,457

2,262

8.6

221

495

(55.4)

(12)

-

-

-

$

32,364

$

31,227

3.6 %

$

31

$

32,210

$

30,604

5.2 %

  1. The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum.
  2. Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested, which primarily includes the Company's ventilator product line and the Renal Care Solutions (RCS) business.
  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 twelve months ended April 26, 2024 excludes $57 million and $111 million, respectively, of inorganic revenue related to the activity noted in (2) and $72 million of unfavorable currency impact and $43 million of favorable currency impact on the remaining segments, respectively. The fiscal year organic revenue calculation reclassifies the first nine months of ventilator product line revenue of $110 million from the Other line to the Acute Care and Monitoring division of the Medical Surgical Portfolio.
  5. The three and twelve months ended April 28, 2023 excludes $379 million and $623 million, respectively, of inorganic revenue related to the following:
    • $265 million related to the one-time payment received as a result of the Intellectual Property Agreement entered into with Edwards Lifesciences in April 2023, which is included in the reported results of the Structural Heart & Aortic division of the Cardiovascular portfolio, and
    • $114 million and $358 million, respectively, of inorganic revenue related to the activity noted in (2). The fiscal year organic revenue calculation reclassifies the first nine months of ventilator product line revenue of $138 million from the Other line to the Acute Care and Monitoring division of the Medical Surgical Portfolio.

1

MEDTRONIC PLC

U.S.(1)(2) REVENUE

(Unaudited)

FOURTH QUARTER

FISCAL YEAR

REPORTED

ORGANIC

REPORTED

ORGANIC

(in millions)

FY24

FY23

Growth

Adjusted

Adjusted

Growth

FY24

FY23

Growth

Adjusted

Adjusted

Growth

FY24(4)

FY23(5)

FY24(4)

FY23(5)

Cardiovascular

$

1,448

$

1,737

(16.6)%

$

1,448

$

1,472

(1.6)%

$

5,597

$

5,796

(3.4)%

$

5,597

$

5,531

1.2 %

Cardiac Rhythm & Heart Failure

791

819

(3.4)

791

819

(3.4)

3,037

3,052

(0.5)

3,037

3,052

(0.5)

Structural Heart & Aortic

366

625

(41.4)

366

360

1.7

1,453

1,622

(10.4)

1,453

1,357

7.1

Coronary & Peripheral Vascular

291

293

(0.7)

291

293

(0.7)

1,107

1,122

(1.3)

1,107

1,122

(1.3)

Neuroscience

1,692

1,581

7.0

1,692

1,581

7.0

6,305

6,018

4.8

6,305

6,018

4.8

Cranial & Spinal Technologies

936

855

9.5

936

855

9.5

3,495

3,259

7.2

3,495

3,259

7.2

Specialty Therapies

439

422

4.0

439

422

4.0

1,641

1,608

2.1

1,641

1,608

2.1

Neuromodulation

317

304

4.3

317

304

4.3

1,169

1,151

1.6

1,169

1,151

1.6

Medical Surgical

954

919

3.8

954

919

3.8

3,717

3,549

4.7

3,759

3,604

4.3

Surgical & Endoscopy

679

653

4.0

679

653

4.0

2,650

2,541

4.3

2,650

2,541

4.3

Acute Care & Monitoring

275

266

3.4

275

266

3.4

1,067

1,008

5.9

1,109

1,063

4.3

Diabetes

223

199

12.1

223

199

12.1

852

849

0.4

852

849

0.4

Other (3)

26

39

(33.3)

-

-

-

91

160

(43.1)

-

-

-

TOTAL

$

4,343

$

4,476

(3.0)%

$

4,317

$

4,171

3.5 %

$

16,562

$

16,373

1.2 %

$

16,514

$

16,003

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. Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested, which primarily includes the Company's ventilator product line and the Renal Care Solutions (RCS) business.
  4. The three and twelve months ended April 26, 2024 excludes $26 million and $48 million, respectively, of inorganic revenue related to the activity noted in (3). The fiscal year organic revenue calculation reclassifies the first nine months of ventilator product line revenue of $42 million from the Other line to the Acute Care and Monitoring division of the Medical Surgical Portfolio.
  5. The three and twelve months ended April 28, 2023 excludes $304 million and $370 million, respectively, of inorganic revenue related to the following:
    • $265 million related to the one-time payment received as a result of the Intellectual Property Agreement entered into with Edwards Lifesciences in April 2023, which is included in the reported results of the Structural Heart & Aortic division of the Cardiovascular portfolio, and
    • $39 million and $105 million, respectively, of inorganic revenue related to the activity noted in (3). The fiscal year organic revenue calculation reclassifies the first nine months of ventilator product line revenue of $55 million from the Other line to the Acute Care and Monitoring division of the Medical Surgical Portfolio.

2

MEDTRONIC PLC

WORLD WIDE REVENUE: GEOGRAPHIC (1)(2)

(Unaudited)

FOURTH QUARTER

FISCAL YEAR

REPORTED

ORGANIC

REPORTED

ORGANIC

(in millions)

FY24

FY23

Growth

Currency

Adjusted

Adjusted

Growth

FY24

FY23

Growth

Currency

Adjusted

Adjusted

Growth

Impact(4)

FY24(5)

FY23(6)

Impact(4)

FY24(5)

FY23(6)

U.S.

$

1,448

$

1,737

(16.6) %

$

-

$

1,448

$

1,472

(1.6) %

$

5,597

$

5,796

(3.4) %

$

-

$

5,597

$

5,531

1.2

%

Non-U.S. Developed

1,039

1,011

2.8

(13)

1,052

1,011

4.1

3,857

3,564

8.2

62

3,795

3,564

6.5

Emerging Markets

643

554

16.1

(15)

658

554

18.8

2,377

2,161

10.0

(49)

2,426

2,161

12.3

Cardiovascular

3,130

3,302

(5.2)

(28)

3,158

3,037

4.0

11,831

11,522

2.7

12

11,819

11,257

5.0

U.S.

1,692

1,581

7.0

-

1,692

1,581

7.0

6,305

6,018

4.8

-

6,305

6,018

4.8

Non-U.S. Developed

482

469

2.8

(11)

493

469

5.1

1,739

1,658

4.9

9

1,730

1,658

4.3

Emerging Markets

371

360

3.1

(10)

381

360

5.8

1,362

1,283

6.2

(25)

1,387

1,283

8.1

Neuroscience

2,545

2,410

5.6

(21)

2,566

2,410

6.5

9,406

8,959

5.0

(16)

9,422

8,959

5.2

U.S.

954

919

3.8

-

954

919

3.8

3,717

3,549

4.7

-

3,759

3,604

4.3

Non-U.S. Developed

805

799

0.8

(17)

822

799

2.9

3,049

2,917

4.5

20

3,055

2,944

3.8

Emerging Markets

439

405

8.4

(5)

444

405

9.6

1,650

1,522

8.4

(4)

1,697

1,579

7.5

Medical Surgical

2,198

2,124

3.5

(22)

2,220

2,124

4.5

8,417

7,989

5.4

16

8,512

8,127

4.7

U.S.

223

199

12.1

-

223

199

12.1

852

849

0.4

-

852

849

0.4

Non-U.S. Developed

337

314

7.3

1

336

314

7.0

1,284

1,106

16.1

37

1,247

1,106

12.7

Emerging Markets

99

82

20.7

(2)

101

82

23.2

352

307

14.7

(6)

358

307

16.6

Diabetes

660

595

10.9

(1)

661

595

11.1

2,488

2,262

10.0

31

2,457

2,262

8.6

U.S.

26

39

(33.3)

-

-

-

-

91

160

(43.1)

-

-

-

-

Non-U.S. Developed

11

35

(68.6)

(2)

-

-

-

50

163

(69.3)

(6)

-

-

-

Emerging Markets

21

39

(46.2)

(1)

-

-

-

81

172

(52.9)

(5)

-

-

-

Other (3)

57

114

(50.0)

(3)

-

-

-

221

495

(55.4)

(12)

-

-

-

U.S.

4,343

4,476

(3.0)

-

4,317

4,171

3.5

16,562

16,373

1.2

-

16,514

16,003

3.2

Non-U.S. Developed

2,674

2,629

1.7

(42)

2,702

2,593

4.2

9,979

9,408

6.1

121

9,828

9,272

6.0

Emerging Markets

1,572

1,440

9.2

(33)

1,584

1,401

13.1

5,823

5,446

6.9

(89)

5,869

5,330

10.1

TOTAL

$

8,589

$

8,544

0.5 %

$

(75)

$

8,604

$

8,165

5.4 %

$

32,364

$

31,227

3.6 %

$

31

$

32,210

$

30,604

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 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. Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested, which primarily includes the Company's ventilator product line and the Renal Care Solutions (RCS) business.
  4. The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.
  5. The three and twelve months ended April 26, 2024 excludes $57 million and $111 million, respectively, of inorganic revenue related to the activity noted in (3) and $72 million of unfavorable currency impact and $43 million of favorable currency impact on the remaining segments, respectively. The fiscal year organic revenue calculation reclassifies the first nine months of ventilator product line revenue of $110 million from the Other line to the Acute Care and Monitoring division of the Medical Surgical Portfolio.
  6. The three and twelve months ended April 28, 2023 excludes $379 million and $623 million, respectively, of inorganic revenue related to the following:
    • $265 million related to the one-time payment received as a result of the Intellectual Property Agreement entered into with Edwards Lifesciences in April 2023, which is included in the reported results of the Structural Heart & Aortic division of the Cardiovascular portfolio, and
    • $114 million and $358 million, respectively, of inorganic revenue related to the activity noted in (3). The fiscal year organic revenue calculation reclassifies the first nine months of ventilator product line revenue of $138 million from the Other line to the Acute Care and Monitoring division of the Medical Surgical Portfolio.

3

MEDTRONIC PLC

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three months ended

Fiscal year ended

(in millions, except per share data)

April 26, 2024

April 28, 2023

April 26, 2024

April 28, 2023

Net sales

$

8,589

$

8,544

$

32,364

$

31,227

Costs and expenses:

Cost of products sold, excluding amortization of intangible assets

3,044

2,980

11,216

10,719

Research and development expense

675

640

2,735

2,696

Selling, general, and administrative expense

2,765

2,616

10,736

10,415

Amortization of intangible assets

419

423

1,693

1,698

Restructuring charges, net

112

294

226

375

Certain litigation charges, net

44

(30)

149

(30)

Other operating expense (income), net

477

56

464

(131)

Operating profit

1,053

1,565

5,144

5,485

Other non-operating income, net

(4)

(173)

(412)

(515)

Interest expense, net

202

187

719

636

Income before income taxes

856

1,551

4,837

5,364

Income tax provision

196

362

1,133

1,580

Net income

659

1,188

3,705

3,784

Net income attributable to noncontrolling interests

(5)

(9)

(28)

(26)

Net income attributable to Medtronic

$

654

$

1,179

$

3,676

$

3,758

Basic earnings per share

$

0.49

$

0.89

$

2.77

$

2.83

Diluted earnings per share

$

0.49

$

0.88

$

2.76

$

2.82

Basic weighted average shares outstanding

1,322.3

1,330.4

1,327.7

1,329.8

Diluted weighted average shares outstanding

1,325.4

1,332.8

1,330.2

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.

4

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS(1)

(Unaudited)

Three months ended April 26, 2024

Cost of

Gross

Operating

Income

Net Income

Net

Operating

Before

attributable

Diluted

Effective

(in millions, except per share data)

Products

Margin

Profit

Income

to

Sales

Sold

Percent

Profit

Percent

Taxes

Medtronic

EPS

Tax Rate

GAAP

$

8,589

$

3,044

64.6 %

$

1,053

12.3 %

$

856

$

654

$

0.49

22.9 %

Non-GAAP Adjustments:

Amortization of intangible assets

-

-

-

419

4.9

419

357

0.27

15.0

Restructuring and associated costs (2)

-

(13)

0.2

152

1.8

152

125

0.09

17.8

Acquisition and divestiture-related items (3)

-

(76)

0.9

611

7.1

611

515

0.39

15.9

Certain litigation charges, net

-

-

-

44

0.5

44

37

0.03

15.9

(Gain)/loss on minority investments (4)

-

-

-

-

-

195

197

0.15

(1.0)

Medical device regulations (5)

-

(21)

0.2

31

0.4

31

27

0.02

12.9

Certain tax adjustments, net

-

-

-

-

-

-

17

0.01

-

Non-GAAP

$

8,589

$

2,934

65.8 %

$

2,311

26.9 %

$

2,309

$

1,929

$

1.46

16.2 %

Currency impact

75

18

0.1

101

0.9

0.07

Currency Adjusted

$

8,664

$

2,952

65.9 %

$

2,412

27.8 %

$

1.53

Three months ended April 28, 2023

Cost of

Gross

Operating

Income

Net Income

Net

Operating

Before

attributable

Diluted

Effective

(in millions, except per share data)

Products

Margin

Profit

Income

to

Sales

Sold

Percent

Profit

Percent

Taxes

Medtronic

EPS

Tax Rate

GAAP

$

8,544

$

2,980

65.1 %

$

1,565

18.3 %

$

1,551

$

1,179

$

0.88

23.3 %

Non-GAAP Adjustments:

Amortization of intangible assets

-

-

-

423

5.0

423

361

0.27

14.7

Restructuring and associated costs (2)

-

(30)

0.4

372

4.4

372

288

0.22

22.6

Acquisition and divestiture-related items (6)

-

(7)

0.1

139

1.6

139

131

0.10

5.8

Certain litigation charges, net (7)

-

-

-

(30)

(0.4)

(30)

(22)

(0.02)

26.7

(Gain)/loss on minority investments (4)

-

-

-

-

-

(10)

(7)

(0.01)

(20.0)

Medical device regulations (5)

-

(25)

0.3

44

0.5

44

34

0.03

22.7

Certain tax adjustments, net (8)

-

-

-

-

-

-

127

0.10

-

Non-GAAP

$

8,544

$

2,917

65.9 %

$

2,512

29.4 %

$

2,488

$

2,091

$

1.57

15.8 %

See description of non-GAAP financial measures contained in the press release dated May 23, 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 predominantly include $439 million of charges related to the February 20, 2024 decision to exit the Company's ventilator product line, which primarily includes long-lived intangible asset impairments and inventory write-downs. In addition, other charges primarily consist of 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 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 charges primarily include changes in the carrying value of the disposal group and other associated costs as a result of the April 2023 sale of half of the Company's Renal Care Solutions (RCS) business, changes in fair value of contingent consideration, business combination costs, and associated costs related to the previously contemplated separation of the PMRI businesses.
  7. Certain litigation includes $35 million related to the one-time payment received as a result of the Intellectual Property Agreement entered into with Edwards Lifesciences in April 2023.
  8. The charge primarily relates to the reduction of deferred tax assets due to the disallowance of certain interest deductions and the change in the reporting currency for certain carryover attributes, and the impact from the sale of half of the Company's RCS business.

5

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS(1)

(Unaudited)

Fiscal year ended April 26, 2024

Cost of

Gross

Operating

Income

Net Income

Net

Operating

Before

Diluted

Effective

(in millions, except per share data)

Products

Margin

Profit

Income

attributable

Sales

Sold

Percent

Profit

Percent

Taxes

to Medtronic

EPS

Tax Rate

GAAP

$32,364

$ 11,216

65.3 %

$

5,144

15.9 %

$

4,837

$

3,676

$

2.76

23.4 %

Non-GAAP Adjustments:

Amortization of intangible assets

-

-

-

1,693

5.2

1,693

1,435

1.08

15.2

Restructuring and associated costs (2)

-

(55)

0.2

389

1.2

389

323

0.24

17.0

Acquisition and divestiture-related items (3)

-

(100)

0.3

777

2.4

777

664

0.50

14.5

Certain litigation charges

-

-

-

149

0.5

149

118

0.09

20.8

(Gain)/loss on minority investments (4)

-

-

-

-

-

308

305

0.23

0.6

Medical device regulations (5)

-

(81)

0.3

119

0.4

119

97

0.07

18.5

Certain tax adjustments, net (6)

-

-

-

-

-

-

299

0.22

-

Non-GAAP

$32,364

$ 10,980

66.1 %

$

8,272

25.6 %

$

8,273

$

6,918

$

5.20

16.0 %

Currency impact

(31)

(114)

0.3

507

1.6

0.33

Currency Adjusted

$32,333

$ 10,866

66.4 %

$

8,779

27.2 %

$

5.53

Fiscal year ended April 28, 2023

Cost of

Gross

Operating

Income

Net Income

Net

Operating

Before

Diluted

Effective

(in millions, except per share data)

Products

Margin

Profit

Income

attributable

Sales

Sold

Percent

Profit

Percent

Taxes

to Medtronic

EPS

Tax Rate

GAAP

$31,227

$ 10,719

65.7 %

$

5,485

17.6 %

$

5,364

$

3,758

$

2.82

29.5 %

Non-GAAP Adjustments:

Amortization of intangible assets

-

-

-

1,698

5.4

1,698

1,443

1.08

15.0

Restructuring and associated costs (2)

-

(97)

0.3

647

2.1

647

507

0.38

21.5

Acquisition and divestiture-related items (7)

-

(66)

0.2

345

1.1

345

316

0.24

8.4

Certain litigation charges, net (8)

-

-

-

(30)

(0.1)

(30)

(23)

(0.02)

26.7

(Gain)/loss on minority investments (4)

-

-

-

-

-

(33)

(29)

(0.02)

(6.1)

Medical device regulations (5)

-

(88)

0.3

150

0.5

150

120

0.09

20.0

Debt redemption premium and other charges (9)

-

-

-

-

-

53

42

0.03

20.8

Certain tax adjustments, net (10)

-

-

-

-

-

-

910

0.68

-

Non-GAAP

$31,227

$ 10,469

66.5 %

$

8,295

26.6 %

$

8,194

$

7,045

$

5.29

13.8 %

See description of non-GAAP financial measures contained in the press release dated May 23, 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 predominantly include $439 million of charges related to the February 20, 2024 decision to exit the Company's ventilator product line, which primarily includes long-lived intangible asset impairments and inventory write-downs. In addition, other charges primarily consist of changes in fair value of contingent consideration and associated costs related to the previously contemplated separation of the PMRI businesses.
  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 time period.
  6. The net charge primarily relates to an income tax reserve adjustment associated with the June 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 predominantly include non-cashpre-tax impairments, primarily related to goodwill, changes in the carrying value of the disposal group, and other associated costs, as a result of the April 2023 sale of half of the Company's Renal Care Solutions (RCS) business; business combination costs, and associated costs related to the previously contemplated separation of the PMRI businesses.
  8. Certain litigation includes $35 million income related to the one-time payment received as a result of the Intellectual Property Agreement entered into with Edwards Lifesciences in April 2023.
  9. 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.
  10. The charge primarily relates to a $764 million reserve adjustment that was a direct result of the U.S. Tax Court opinion, issued in August 2022, on the previously disclosed litigation regarding the allocation of income between Medtronic, Inc. and its wholly owned subsidiary operating in Puerto Rico. Additional charges relate to the reduction of deferred tax assets due to the disallowance of certain interest deductions and the change in the reporting currency for certain carryover attributes, and the amortization on previously established deferred tax assets from intercompany intellectual property transactions.

6

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS(1)

(Unaudited)

Three months ended April 26, 2024

SG&A

R&D

Other

Other

Operating

Operating

Other Non-

SG&A

Expense as

R&D

Expense

(Income)

(Inc.)/Exp.,

(in millions)

Net Sales

a % of Net

as a % of

Expense,

net as a % of

Operating

Expense

Sales

Expense

Net Sales

net

Net Sales

Income, net

GAAP

$

8,589

$

2,765

32.2 %

$

675

7.9 %

$

477

5.6 %

$

(4)

Non-GAAP Adjustments:

Restructuring and associated costs (2)

-

(28)

(0.3)

-

-

-

-

-

Acquisition and divestiture-related items (3)

-

(6)

(0.1)

-

-

(530)

(6.2)

-

Medical device regulations (4)

-

(1)

-

(9)

(0.1)

-

-

-

(Gain)/loss on minority investments (5)

-

-

-

-

-

-

-

(195)

Non-GAAP

$

8,589

$

2,731

31.8 %

$

666

7.8 %

$

(52)

(0.6)%

$

(200)

Fiscal year ended April 26, 2024

SG&A

R&D

Other

Other

Operating

Operating

Other Non-

SG&A

Expense as

R&D

Expense

(Income)

(Inc.)/Exp.,

(in millions)

Net Sales

a % of Net

as a % of

Expense,

net as a % of

Operating

Expense

Sales

Expense

Net Sales

net

Net Sales

Income, net

GAAP

$

32,364

$

10,736

33.2 %

$

2,735

8.5 %

$

464

1.4 %

$

(412)

Non-GAAP Adjustments:

Restructuring and associated costs (2)

-

(108)

(0.3)

-

-

-

-

-

Acquisition and divestiture-related items (3)

-

(71)

(0.2)

-

-

(606)

(1.9)

-

Medical device regulations (4)

-

(2)

-

(36)

(0.1)

-

-

-

(Gain)/loss on minority investments (5)

-

-

-

-

-

-

-

(308)

Non-GAAP

$

32,364

$

10,555

32.6 %

$

2,698

8.3 %

$

(141)

(0.4)%

$

(720)

See description of non-GAAP financial measures contained in the press release dated May 23, 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 and consulting expenses.
  3. The charges predominantly include $439 million of charges related to the February 20, 2024 decision to exit the Company's ventilator product line, which primarily includes long-lived intangible asset impairments. In addition, other charges primarily related to changes in fair of contingent consideration and associated costs related to the previously contemplated separation of the PMRI businesses.
  4. The charges represent estimated 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.

7

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS(1)

(Unaudited)

Fiscal Year

(in millions)

2024

2023

2022

Net cash provided by operating activities

$

6,787

$

6,039

$

7,346

Additions to property, plant, and equipment

(1,587)

(1,459)

(1,368)

Free Cash Flow (2)

$

5,200

$

4,580

$

5,978

See description of non-GAAP financial measures contained in the press release dated May 23, 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.

8

MEDTRONIC PLC

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in millions)

April 26, 2024

April 28, 2023

ASSETS

Current assets:

Cash and cash equivalents

$

1,284

$

1,543

Investments

6,721

6,416

Accounts receivable, less allowances and credit losses of $173 and $176, respectively

6,128

5,998

Inventories, net

5,217

5,293

Other current assets

2,584

2,425

Total current assets

21,935

21,675

Property, plant, and equipment, net

6,131

5,569

Goodwill

40,986

41,425

Other intangible assets, net

13,225

14,844

Tax assets

3,657

3,477

Other assets

4,047

3,959

Total assets

$

89,981

$

90,948

LIABILITIES AND EQUITY

Current liabilities:

Current debt obligations

$

1,092

$

20

Accounts payable

2,410

2,662

Accrued compensation

2,375

1,949

Accrued income taxes

1,330

840

Other accrued expenses

3,582

3,581

Total current liabilities

10,789

9,051

Long-term debt

23,932

24,344

Accrued compensation and retirement benefits

1,101

1,093

Accrued income taxes

1,859

2,360

Deferred tax liabilities

515

708

Other liabilities

1,365

1,727

Total liabilities

39,561

39,283

Commitments and contingencies

Shareholders' equity:

Ordinary shares- par value $0.0001, 2.6 billion shares authorized, 1,311,337,531 and

1,330,809,036 shares issued and outstanding, respectively

-

-

Additional paid-in capital

23,129

24,590

Retained earnings

30,403

30,392

Accumulated other comprehensive loss

(3,318)

(3,499)

Total shareholders' equity

50,214

51,483

Noncontrolling interests

206

182

Total equity

50,420

51,665

Total liabilities and equity

$

89,981

$

90,948

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

9

MEDTRONIC PLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Fiscal Year

(in millions)

2024

2023

2022

Operating Activities:

Net income

$

3,705

$

3,784

$

5,062

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

Depreciation and amortization

2,647

2,697

2,707

Provision for credit losses

90

73

58

Deferred income taxes

(508)

(226)

(604)

Stock-based compensation

393

355

359

Loss on debt extinguishment

-

53

-

Asset impairments and inventory write-downs

371

-

515

Other, net

573

270

138

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

Accounts receivable, net

(391)

(576)

(477)

Inventories, net

(139)

(939)

(560)

Accounts payable and accrued liabilities

391

696

213

Other operating assets and liabilities

(345)

(148)

(65)

Net cash provided by operating activities

6,787

6,039

7,346

Investing Activities:

Acquisitions, net of cash acquired

(211)

(1,867)

(91)

Additions to property, plant, and equipment

(1,587)

(1,459)

(1,368)

Purchases of investments

(7,748)

(7,514)

(9,882)

Sales and maturities of investments

7,441

7,343

9,692

Other investing activities, net

(261)

4

(10)

Net cash used in investing activities

(2,366)

(3,493)

(1,659)

Financing Activities:

Change in current debt obligations, net

1,073

-

-

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

-

2,284

-

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

-

(2,279)

-

Issuance of long-term debt

-

5,409

-

Payments on long-term debt

-

(6,012)

(1)

Dividends to shareholders

(3,666)

(3,616)

(3,383)

Issuance of ordinary shares

284

308

429

Repurchase of ordinary shares

(2,138)

(645)

(2,544)

Other financing activities

(3)

(409)

163

Net cash used in financing activities

(4,450)

(4,960)

(5,336)

Effect of exchange rate changes on cash and cash equivalents

(230)

243

(231)

Net change in cash and cash equivalents

(259)

(2,171)

121

Cash and cash equivalents at beginning of period

1,543

3,714

3,593

Cash and cash equivalents at end of period

$

1,284

$

1,543

$

3,714

Supplemental Cash Flow Information

Cash paid for:

Income taxes

$

1,622

$

1,548

$

996

Interest

826

606

540

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

10

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Medtronic plc published this content on 23 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2024 11:13:09 UTC.