SEC Filings

DEFR14A
MEDTRONIC PLC filed this Form DEFR14A on 10/11/2017
Entire Document
 

Appendix A – NON-GAAP RECONCILIATIONS

 

This proxy statement provides certain revenue growth rates, operating margin improvement and diluted EPS figures on a comparable, constant currency basis and as adjusted for the favorable extra week in fiscal year 2016. Constant currency growth measures the change in revenue between current and prior year periods using average exchange rates in effect during the applicable prior year period. These figures are “non-GAAP” financial measures under applicable SEC rules and regulations.

 

Management believes that referring to comparable constant currency growth rates is a useful way to evaluate the underlying performance of Medtronic’s sales. 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 GAAP, and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies.

 

Management strongly encourages investors to review the company’s consolidated financial statements and publicly filed reports in their entirety.

 

Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included below.

 

MEDTRONIC PLC RECONCILIATION OF OPERATING CASH FLOW TO FREE CASH FLOW (Unaudited)

 

(in millions) Fiscal Year 2017  
Net cash provided by operating activities   $ 6,880  
Additions to property, plant, and equipment     (1,254 )
Free Cash Flow(1)   $ 5,626  
(1) Free cash flow represents operating cash flows less property, plant, and equipment additions.

 

MEDTRONIC PLC NET INCOME AND DILUTED EPS GAAP TO NON-GAAP RECONCILIATIONS (Unaudited)

 

(in millions, except per share data) Fiscal year ended April 28, 2017
Net Sales Cost of
Products
Sold
  Gross
Margin
Percent
  Operating
Profit
Operating
Profit
Percent
  Income
Before
Provision
for Income
Taxes
Net Income
attributable
to Medtronic
Diluted
EPS(1)
Effective
Tax Rate
 
GAAP $ 29,710 $ 9,291   68.7 % $ 5,330 17.9 % $ 4,602 $ 4,028 $ 2.89 12.6 %
Non-GAAP Adjustments:(2)                                      
Impact of inventory step-up(a)     (38 )       38       38   24   0.02 36.8  
Special charge(b)             100       100   63   0.05 37.0  
Restructuring charges, net     (10 )       373       373   272   0.20 27.1  
Certain litigation charges             300       300   190   0.14 36.7  
Acquisition-related items(c)     (10 )       230       230   156   0.11 32.2  
Amortization of intangible assets             1,980       1,980   1,460   1.05 26.3  
Certain tax adjustments, net(d)                     202   0.15  
Non-GAAP   29,710   9,233   68.9 %   8,351 28.1 %   7,623   6,395   4.60 16.2 %
Foreign currency impact   34   (65 ) 0.3     289 0.9             0.17    
Constant Currency Adjusted $ 29,744 $ 9,168   69.2 % $ 8,640 29.0 %         $ 4.77    

 

MEDTRONIC PLC   2017 Proxy Statement    A-1

 
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