SEC Filings

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


NET SALES
The table below illustrates net sales by operating segment and division 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
 
% Change
 
October 27, 2017
 
October 28, 2016
 
% Change
Cardiac Rhythm & Heart Failure
$
1,467

 
$
1,400

 
5
 %
 
$
2,857

 
$
2,734

 
4
 %
Coronary & Structural Heart
854

 
753

 
13

 
1,671

 
1,515

 
10

Aortic & Peripheral Vascular
452

 
431

 
5

 
891

 
853

 
4

Cardiac and Vascular Group
2,773

 
2,584

 
7

 
5,419

 
5,102

 
6

Surgical Innovations
1,334

 
1,271

 
5

 
2,640

 
2,530

 
4

Respiratory, Gastrointestinal & Renal
618

 
1,202

 
(49
)
 
1,798

 
2,367

 
(24
)
Minimally Invasive Therapies Group
1,952

 
2,473

 
(21
)
 
4,438

 
4,897

 
(9
)
Spine
659

 
663

 
(1
)
 
1,308

 
1,308

 

Brain Therapies
575

 
506

 
14

 
1,097

 
995

 
10

Specialty Therapies
365

 
369

 
(1
)
 
734

 
725

 
1

Pain Therapies
264

 
288

 
(8
)
 
533

 
570

 
(6
)
Restorative Therapies Group
1,863

 
1,826

 
2

 
3,672

 
3,598

 
2

Diabetes Group
462

 
462

 

 
911

 
914

 

Total
$
7,050

 
$
7,345

 
(4
)%
 
$
14,440

 
$
14,511

 
 %
The decrease in net sales for the three and six months ended October 27, 2017 as compared to the three and six months ended October 28, 2016 was primarily attributable to the divestiture of our Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses within the Respiratory, Gastrointestinal, & Renal division of the Minimally Invasive Therapies Group during the three months ended October 27, 2017, along with the impact of Hurricane Maria, which significantly affected our manufacturing operations in Puerto Rico.
During the second quarter of fiscal year 2018, the Surgical Solutions and Patient Monitoring & Recovery divisions of the Minimally Invasive Therapies Group were realigned into the Surgical Innovations and Respiratory, Gastrointestinal, & Renal divisions. Refer to the "Minimally Invasive Therapies Group" discussion within this Management's Discussion and Analysis for more information on the composition of the Surgical Innovations and Respiratory, Gastrointestinal, & Renal divisions.
Cardiac and Vascular Group
The Cardiac and Vascular Group’s products include pacemakers, insertable and external cardiac monitors, cardiac resynchronization therapy devices (CRT-D), implantable cardioverter defibrillators (ICD), leads and delivery systems, ventricular assist systems, ablation products, electrophysiology catheters, products for the treatment of atrial fibrillation, information systems for the management of patients with Cardiac Rhythm & Heart Failure devices, products designed to reduce surgical site infections, coronary and peripheral stents and related delivery systems, balloons and related delivery systems, endovascular stent graft systems, heart valve replacement technologies, cardiac tissue ablation systems, and open heart and coronary bypass grafting surgical products. The Cardiac and Vascular Group also includes Care Management Services and Cath Lab Managed Services (CLMS) within the Cardiac Rhythm & Heart Failure division. The Cardiac and Vascular Group’s net sales for the three and six months ended October 27, 2017 were $2.8 billion and $5.4 billion, respectively, an increase of 7 percent and 6 percent, respectively, as compared to the corresponding periods in the prior fiscal year. Currency had a favorable impact on net sales for the three and six months ended October 27, 2017 of $16 million and $4 million, respectively. The Cardiac and Vascular Group's net sales for the three and six months ended October 27, 2017, as compared to the corresponding periods in the prior fiscal year, benefited from strong net sales growth in all three divisions. See the more detailed discussion of each division's performance below.
Cardiac Rhythm & Heart Failure net sales for the three and six months ended October 27, 2017 were $1.5 billion and $2.9 billion, respectively, an increase of 5 percent and 4 percent, respectively, as compared to the corresponding periods in the prior fiscal year. Cardiac Rhythm & Heart Failure net sales growth for the three and six months ended October 27, 2017 was driven by strong growth in Arrhythmia Management and Heart Failure. The strong growth in Arrhythmia Management was driven by growth in AF Solutions, strong adoption of the Micra transcatheter pacing system as a result of receiving final approval for reimbursement in the U.S. from the Centers for Medicare & Medicaid Services during the fourth quarter of fiscal year 2017, the strong adoption of the TYRX absorbable antibacterial envelope, and growth in Diagnostics driven by the continued global demand of the Reveal

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