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)
 
Six 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
$
14,440

 
$
4,469

 
69.1
%
 
$
3,290

 
22.8
%
 
$
2,923

 
$
3,033

 
$
2.21

 
(3.4
)%
Non-GAAP Adjustments: (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges, net

 
(12
)
 
 
 
32

 
 
 
32

 
26

 
0.02

 
18.8

Acquisition-related items

 
(20
)
 
 
 
71

 
 
 
71

 
47

 
0.03

 
33.8

Divestiture-related items (a)

 

 
 
 
115

 
 
 
115

 
100

 
0.07

 
13.0

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

 

 
 
 
914

 
 
 
914

 
748

 
0.55

 
18.2

Certain tax adjustments, net (e)

 

 
 
 

 
 
 

 
(344
)
 
(0.25
)
 

Non-GAAP
$
14,440

 
$
4,420

 
69.4
%
 
$
3,839

 
26.6
%
 
$
3,472

 
$
2,997

 
$
2.19

 
14.0
 %
Foreign currency impact
(2
)
 
5

 

 
27

 
0.2

 
 
 
 
 
0.01

 
 
Foreign Currency Adjusted
$
14,438

 
$
4,425

 
69.4
%
 
$
3,866

 
26.8
%
 
 
 
 
 
$
2.20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six 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
$
14,511

 
$
4,587

 
68.4
%
 
$
2,552

 
17.6
%
 
$
2,200

 
$
2,044

 
$
1.46

 
7.3
 %
Non-GAAP Adjustments: (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impact of inventory step-up (f)

 
(38
)
 
 
 
38

 
 
 
38

 
24

 
0.02

 
36.8

Restructuring charges, net

 
(10
)
 
 
 
151

 
 
 
151

 
113

 
0.08

 
25.2

Certain litigation charges

 

 
 
 
82

 
 
 
82

 
52

 
0.04

 
36.6

Acquisition-related items

 

 
 
 
80

 
 
 
80

 
41

 
0.03

 
48.8

Amortization of intangible assets

 

 
 
 
987

 
 
 
987

 
761

 
0.54

 
22.9

Certain tax adjustments, net (g)

 

 
 
 

 
 
 

 
(31
)
 
(0.02
)
 

Non-GAAP
$
14,511

 
$
4,539

 
68.7
%
 
$
3,890

 
26.8
%
 
$
3,538

 
$
3,004

 
$
2.15

 
15.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year over year percent change:
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
 
Diluted EPS
 
 
GAAP
 
 
 
 
 
 
 
 
 
 
 
 
48%
 
51%
 
 
Non-GAAP
 
 
 
 
 
 
 
 
 
 
 
 
—%
 
2%
 
 
See description of non-GAAP financial measures contained in this 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 gains 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, which is partially offset by the impacts from the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses.

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