SEC Filings

10-Q
MEDTRONIC PLC filed this Form 10-Q on 09/01/2017
Entire Document
 
Medtronic plc
Notes to Consolidated Financial Statements
(Unaudited)


17. Segment and Geographic Information
Segment information
The Company’s management evaluates segment performance and allocates resources based on net sales and earnings before interest expense, net, the provision for income taxes, and amortization of intangible assets, not including centralized distribution costs and corporate charges, as presented in the table below. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in Note 1 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended April 28, 2017. The financial information that is regularly reviewed by the Company's chief operating decision maker to assess performance and allocate resources changed during fiscal year 2017. As a result, the Company has revised the disclosure for the prior period to align with current presentation.
Net sales of the Company’s reportable segments include end-customer revenues from the sale of products each reportable segment develops and manufactures or distributes. Segment disclosures are on a performance basis consistent with internal management reporting. Certain items are at corporate and centralized and are not allocated to the segments. Net sales and earnings before interest expense, net, the provision for income taxes, and amortization of intangible assets, not including centralized distribution costs and corporate charges by reportable segments are as follows:
 
Three months ended
(in millions)
July 28, 2017
 
July 29, 2016
Cardiac and Vascular Group
$
2,646

 
$
2,518

Minimally Invasive Therapies Group
2,486

 
2,424

Restorative Therapies Group
1,809

 
1,772

Diabetes Group
449

 
452

Net Sales
$
7,390

 
$
7,166

 
Three months ended
(in millions)
July 28, 2017
 
July 29, 2016
Cardiac and Vascular Group
$
1,011

 
$
954

Minimally Invasive Therapies Group
875

 
824

Restorative Therapies Group
680

 
669

Diabetes Group
112

 
159

Reportable segments' EBITA before other adjustments
2,678

 
2,606

Restructuring charges, net
(14
)
 
(104
)
Acquisition-related items
(53
)
 
(52
)
Divestiture-related items
(48
)
 

Certain litigation charges

 
(82
)
Amortization of intangible assets
(454
)
 
(487
)
Centralized distribution costs
(442
)
 
(401
)
Interest expense, net
(194
)
 
(179
)
Corporate
(278
)
 
(313
)
Income before provision for income taxes
$
1,195

 
$
988


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