SEC Filings

10-Q
MEDTRONIC PLC filed this Form 10-Q on 12/04/2017
Entire Document
 


The tables below present our GAAP to Non-GAAP reconciliations for the three and six months ended October 27, 2017 and October 28, 2016:
 
Three months ended October 27, 2017
(in millions)
Income Before Income Taxes
 
Diluted EPS (1)
 
Income tax (benefit) provision (2)
 
Effective Tax Rate
GAAP
$
1,728

 
$
1.48

 
$
(285
)
 
(16.5
)%
Non-GAAP Adjustments: (3)
 
 
 
 
 
 
 
Restructuring charges, net
18

 
0.01

 
4


22.2

Acquisition-related items
18

 
0.01

 
10


55.6

Divestiture-related items (a)
67

 
0.04

 
7

 
10.4

Gain on sale of businesses (b)
(697
)
 
(0.51
)
 

 

Hurricane Maria (c)
34

 
0.02

 
1

 
2.9

Special charge (d)
80

 
0.04

 
29

 
36.3

Amortization of intangible assets
460

 
0.27

 
86


18.7

Certain tax adjustments, net (e)

 
(0.30
)
 
404



Non-GAAP
$
1,708

 
$
1.07

 
$
256


15.0
 %
 
 
 
 
 
 
 
 
 
Three months ended October 28, 2016
(in millions)
Income Before Income Taxes
 
Diluted EPS (1)
 
Income tax (benefit) provision (2)
 
Effective Tax Rate
GAAP
$
1,212

 
$
0.80

 
$
101

 
8.3
 %
Non-GAAP Adjustments: (3)
 
 
 
 
 
 
 
Impact of inventory step-up (f)
38

 
0.02

 
14

 
36.8

Restructuring charges, net
47

 
0.03

 
12

 
25.5

Acquisition-related items
28

 

 
26

 
92.9

Amortization of intangible assets
500

 
0.28

 
115

 
23.0

Non-GAAP
$
1,825

 
$
1.12

 
$
268

 
14.7
 %
(1)
The data in this schedule has been intentionally rounded to the nearest $0.01 and, therefore, may not sum.
(2)
The tax effect of each Non-GAAP Adjustment is based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
(3)
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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