SEC Filings

8-K
MEDTRONIC PLC filed this Form 8-K on 11/21/2017
Entire Document
 



MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS
(Unaudited)
 
Three months ended October 27, 2017
(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 (1)
 
Effective Tax Rate
GAAP
$
7,050

 
$
2,120

 
69.9
 %
 
$
1,901

 
27.0
 %
 
$
1,728

 
$
2,017

 
$
1.48

 
(16.5
)%
Non-GAAP Adjustments: (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges, net

 
(7
)
 
 
 
18

 
 
 
18

 
14

 
0.01

 
22.2

Acquisition-related items

 
(11
)
 
 
 
18

 
 
 
18

 
8

 
0.01

 
55.6

Divestiture-related items (a)

 

 
 
 
67

 
 
 
67

 
60

 
0.04

 
10.4

Gain on sale of businesses (b)

 

 
 
 
(697
)
 
 
 
(697
)
 
(697
)
 
(0.51
)
 

Hurricane Maria (c)

 
(17
)
 
 
 
34

 
 
 
34

 
33

 
0.02

 
2.9

Special charge (d)

 

 
 
 
80

 
 
 
80

 
51

 
0.04

 
36.3

Amortization of intangible assets

 

 
 
 
460

 
 
 
460

 
374

 
0.27

 
18.7

Certain tax adjustments, net (e)

 

 
 
 

 
 
 

 
(404
)
 
(0.30
)
 

Non-GAAP
$
7,050

 
$
2,085

 
70.4
 %
 
$
1,881

 
26.7
 %
 
$
1,708

 
$
1,456

 
$
1.07

 
15.0
 %
Foreign currency impact
(35
)
 
8

 
(0.2
)
 
(13
)
 
(0.1
)
 
 
 
 
 
(0.01
)
 
 
Foreign Currency Adjusted
$
7,015

 
$
2,093

 
70.2
 %
 
$
1,868

 
26.6
 %
 


 


 
$
1.06

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended October 28, 2016
(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 (1)
 
Effective Tax Rate
GAAP
$
7,345

 
$
2,326

 
68.3
 %
 
$
1,385

 
18.9
 %
 
$
1,212

 
$
1,115

 
$
0.80

 
8.3
 %
Non-GAAP Adjustments: (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impact of inventory step-up (f)

 
(38
)
 
 
 
38

 
 
 
38

 
24

 
0.02

 
36.8

Restructuring charges, net

 

 
 
 
47

 
 
 
47

 
35

 
0.03

 
25.5

Acquisition-related items

 

 
 
 
28

 
 
 
28

 
2

 

 
92.9

Amortization of intangible assets

 

 
 
 
500

 
 
 
500

 
385

 
0.28

 
23.0

Non-GAAP
$
7,345

 
$
2,288

 
68.8
 %
 
$
1,998

 
27.2
 %
 
$
1,825

 
$
1,561

 
$
1.12

 
14.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year over year percent change:
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
 
Diluted EPS
 
 
GAAP
 
 
 
 
 
 
 
 
 
 
 
 
81%
 
85%
 
 
Non-GAAP
 
 
 
 
 
 
 
 
 
 
 
 
(7)%
 
(4)%
 
 
See description of non-GAAP financial measures at the end of the earnings press release.
(1)
The data in this schedule has been intentionally rounded to the nearest $0.01 and, therefore, may not sum.
(2)
Non-GAAP adjustments relate to charges or benefits that management believes may or may not recur with similar materiality or impact on results in future periods.
(a)
The transaction expenses incurred in connection with the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses.
(b)
The gain on the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses.
(c)
The charges represent idle facility costs, asset write-downs, and humanitarian efforts related to Hurricane Maria.
(d)
The charge represents a commitment to fund the Medtronic Foundation.
(e)
The net benefit primarily relates to the tax effect from the intercompany sale of intellectual property.
(f)
Represents amortization of step-up in fair value of inventory acquired in connection with the HeartWare acquisition.


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