SEC Filings

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


 
Six months ended October 27, 2017
(in millions)
Income Before Income Taxes
 
Diluted EPS (1)
 
Income tax (benefit) provision (2)
 
Effective Tax Rate
GAAP
$
2,923

 
$
2.21

 
$
(99
)
 
(3.4
)%
Non-GAAP Adjustments: (3)
 
 
 
 
 
 
 
Restructuring charges, net
32

 
0.02

 
6

 
18.8

Acquisition-related items
71

 
0.03

 
24

 
33.8

Divestiture-related items (a)
115

 
0.07

 
15

 
13.0

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
914

 
0.55

 
166

 
18.2

Certain tax adjustments, net (e)

 
(0.25
)
 
344

 

Non-GAAP
$
3,472

 
$
2.19

 
$
486

 
14.0
 %
 
 
 
 
 
 
 
 
 
Six months ended October 28, 2016
(in millions)
Income Before Income Taxes
 
Diluted EPS (1)
 
Income tax (benefit) provision (2)
 
Effective Tax Rate
GAAP
$
2,200

 
$
1.46

 
160

 
7.3
 %
Non-GAAP Adjustments: (3)
 
 
 
 
 
 
 
Impact of inventory step-up (f)
38

 
0.02

 
14

 
36.8

Restructuring charges, net
151

 
0.08

 
38

 
25.2

Certain litigation charges
82

 
0.04

 
30

 
36.6

Acquisition-related items
80

 
0.03

 
39

 
48.8

Amortization of intangible assets
987

 
0.54

 
226

 
22.9

Certain tax adjustments, net (g)

 
(0.02
)
 
31

 

Non-GAAP
$
3,538

 
$
2.15

 
$
538

 
15.2
 %
(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 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.
(f)
Represents amortization of step-up in fair value of inventory acquired in connection with the HeartWare acquisition.
(g)
The net benefit in certain tax adjustments relates to the resolution of various tax positions from prior years and other certain tax charges recorded in connection with the redemption of an intercompany minority interest.

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