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)


The supplemental equity schedule below presents changes in the Company's total shareholders' equity and noncontrolling interests for the six months ended October 27, 2017 and October 28, 2016.
(in millions)
 
Total Shareholders' Equity
 
Noncontrolling Interests
 
Total Equity
April 28, 2017
 
$
50,294

 
$
122

 
$
50,416

Net income (loss)
 
3,033

 
(11
)
 
3,022

Other comprehensive income
 
553

 

 
553

Dividends to shareholders
 
(1,247
)
 

 
(1,247
)
Issuance of shares under stock purchase and award plans
 
177

 

 
177

Repurchase of ordinary shares
 
(1,835
)
 

 
(1,835
)
Stock-based compensation
 
198

 

 
198

Cumulative effect of change in accounting principle
 
296

 

 
296

Additions (reductions) of noncontrolling ownership interests
 

 
(2
)
 
(2
)
October 27, 2017
 
$
51,469

 
$
109

 
$
51,578

 
 
 
 
 
 
 
(in millions)
 
Total Shareholders' Equity
 
Noncontrolling Interests
 
Total Equity
April 29, 2016
 
$
52,063

 
$

 
$
52,063

Net income (loss)
 
2,044

 
(4
)
 
2,040

Other comprehensive loss
 
(460
)
 

 
(460
)
Dividends to shareholders
 
(1,192
)
 

 
(1,192
)
Issuance of shares under stock purchase and award plans
 
260

 

 
260

Repurchase of ordinary shares
 
(2,794
)
 

 
(2,794
)
Tax benefit from exercise of stock-based awards

 
75

 

 
75

Stock-based compensation
 
190

 

 
190

Additions (reductions) of noncontrolling ownership interests
 

 
111

 
111

October 28, 2016
 
$
50,186

 
$
107

 
$
50,293

17. Commitments and Contingencies
Legal Matters
The Company and its affiliates are involved in a number of legal actions involving product liability, intellectual property disputes, shareholder related matters, environmental proceedings, income tax disputes, and governmental proceedings and investigations, including those described below. With respect to governmental proceedings and investigations, like other companies in our industry, the Company is subject to extensive regulation by national, state and local governmental agencies in the United States and in other jurisdictions in which the Company and its affiliates operate. As a result, interaction with governmental agencies is ongoing. The Company’s standard practice is to cooperate with regulators and investigators in responding to inquiries. The outcomes of these legal actions are not within the Company’s complete control and may not be known for prolonged periods of time. In some actions, the enforcement agencies or private claimants seek damages, as well as other civil or criminal remedies (including injunctions barring the sale of products that are the subject of the proceeding), that could require significant expenditures, result in lost revenues, or limit the Company's ability to conduct business in the applicable jurisdictions.
The Company records a liability in the consolidated financial statements on an undiscounted basis for loss contingencies related to legal actions when a loss is known or considered probable and the amount may be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and may be reasonably estimated, the estimated loss or range of loss is disclosed. When determining the estimated loss or range of loss, significant judgment is required. Estimates of probable losses resulting from litigation and governmental proceedings involving the Company are inherently difficult to predict, particularly when the matters are in early procedural stages, with incomplete scientific facts or legal discovery, involve unsubstantiated or indeterminate claims for damages, potentially involve penalties, fines or punitive damages, or could result in a change in business practice. At October 27, 2017 and April 28, 2017, accrued litigation was approximately $1.0 billion and $1.1

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