SEC Filings

10-Q
MEDTRONIC PLC filed this Form 10-Q on 12/04/2017
Entire Document
 
Medtronic plc
Notes to Consolidated Financial Statements
(Unaudited)


14. Stock-Based Compensation
The following table presents the components and classification of stock-based compensation expense for stock options, restricted stock, and employee stock purchase plan shares recognized for the three and six months ended October 27, 2017 and October 28, 2016:
 
Three months ended
 
Six months ended
(in millions)
October 27, 2017
 
October 28, 2016
 
October 27, 2017
 
October 28, 2016
Stock options
$
42

 
$
53

 
$
77

 
$
91

Restricted stock
59

 
54

 
107

 
88

Employee stock purchase plan
5

 
4

 
14

 
11

Total stock-based compensation expense
$
106

 
$
111

 
$
198

 
$
190

 
 
 
 
 
 
 
 
Cost of products sold
$
14

 
$
15

 
$
24

 
$
26

Research and development expense
12

 
13

 
21

 
22

Selling, general, and administrative expense
79

 
73

 
134

 
124

Restructuring charges

 
1

 

 
2

Acquisition-related items
1

 
9

 
3

 
16

Divestiture-related items

 

 
16

 

Total stock-based compensation expense
106

 
111

 
198

 
190

Income tax benefits
(32
)
 
(33
)
 
(57
)
 
(54
)
Total stock-based compensation expense, net of tax
$
74

 
$
78

 
$
141

 
$
136

15. Retirement Benefit Plans
The Company sponsors various retirement benefit plans, including defined benefit pension plans (pension benefits), post-retirement medical plans, defined contribution savings plans, and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. The net periodic benefit cost of the defined benefit pension plans included the following components for the three and six months ended October 27, 2017 and October 28, 2016:
 
U.S. Pension Benefits
 
Non-U.S. Pension Benefits
 
Three months ended
 
Three months ended
(in millions)
October 27, 2017
 
October 28, 2016
 
October 27, 2017
 
October 28, 2016
Service cost
$
29

 
$
29

 
$
17

 
$
19

Interest cost
30

 
27

 
7

 
6

Expected return on plan assets
(52
)
 
(47
)
 
(13
)
 
(12
)
Amortization of net actuarial loss
20

 
23

 
4

 
4

Net periodic benefit cost
$
27

 
$
32

 
$
15

 
$
17


 
U.S. Pension Benefits
 
Non-U.S. Pension Benefits
 
Six months ended
 
Six months ended
(in millions)
October 27, 2017
 
October 28, 2016
 
October 27, 2017
 
October 28, 2016
Service cost
$
58

 
$
58

 
34

 
$
38

Interest cost
60

 
54

 
14

 
12

Expected return on plan assets
(104
)
 
(94
)
 
(26
)
 
(24
)
Amortization of net actuarial loss
40

 
46

 
8

 
8

Net periodic benefit cost
$
54

 
$
64

 
$
30

 
$
34



26

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