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Guarantor Financial Information
3 Months Ended
Jul. 27, 2018
Condensed Financial Information Disclosure [Abstract]  
Guarantor Financial Information
Guarantor Financial Information
Medtronic plc and Medtronic Global Holdings S.C.A. (Medtronic Luxco), a wholly-owned subsidiary guarantor, each have provided full and unconditional guarantees of the obligations of Medtronic, Inc., a wholly-owned subsidiary issuer, under the Senior Notes (Medtronic Senior Notes) and full and unconditional guarantees of the obligations of Covidien International Finance S.A. (CIFSA), a wholly-owned subsidiary issuer, under the Senior Notes (CIFSA Senior Notes). The guarantees of the CIFSA Senior Notes are in addition to the guarantees of the CIFSA Senior Notes by Covidien Ltd. and Covidien Group Holdings Ltd., both of which are wholly-owned subsidiary guarantors of the CIFSA Senior Notes. Additionally, Medtronic plc and Medtronic, Inc. each have provided a full and unconditional guarantee of the obligations of Medtronic Luxco under the Medtronic Luxco Senior Notes. The following is a summary of these guarantees:
Guarantees of Medtronic Senior Notes
Parent Company Guarantor - Medtronic plc
Subsidiary Issuer - Medtronic, Inc.
Subsidiary Guarantor - Medtronic Luxco

Guarantees of Medtronic Luxco Senior Notes
Parent Company Guarantor - Medtronic plc
Subsidiary Issuer - Medtronic Luxco
Subsidiary Guarantor - Medtronic, Inc.

Guarantees of CIFSA Senior Notes
Parent Company Guarantor - Medtronic plc
Subsidiary Issuer - CIFSA
Subsidiary Guarantors - Medtronic Luxco, Covidien Ltd., and Covidien Group Holdings Ltd. (CIFSA Subsidiary Guarantors)
The following presents the Company’s consolidating statements of comprehensive income for the three months ended July 27, 2018 and July 28, 2017, condensed consolidating balance sheets at July 27, 2018 and April 27, 2018, and condensed consolidating statements of cash flows for the three months ended July 27, 2018 and July 28, 2017. The guarantees provided by the parent company guarantor and subsidiary guarantors are joint and several. Condensed consolidating financial information for Medtronic plc, Medtronic Luxco, Medtronic, Inc., CIFSA, and CIFSA Subsidiary Guarantors, on a stand-alone basis, is presented using the equity method of accounting for subsidiaries. The Company has presented the provisional tax impacts related to the Tax Act within the condensed consolidating financial statements for the three months ended July 27, 2018, at the subsidiary which the Company reasonably expects to be affected by the Tax Act. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year.
During the first quarter of fiscal year 2019, the Company undertook certain steps to reorganize ownership of various subsidiaries. The transactions were entirely among subsidiaries under the common control of Medtronic. This reorganization has been reflected as of the beginning of the earliest period presented.
Consolidating Statement of Comprehensive Income
Three Months Ended July 27, 2018
Medtronic Senior Notes and Medtronic Luxco Senior Notes
(in millions)
Medtronic plc
 
Medtronic, Inc.
 
Medtronic Luxco
 
Subsidiary Non-guarantors
 
Consolidating
Adjustments
 
Total
Net sales
$

 
$
362

 
$

 
$
7,384

 
$
(362
)
 
$
7,384

 
 
 
 
 
 
 
 
 
 
 
 
Costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of products sold

 
273

 

 
2,168

 
(237
)
 
2,204

Research and development expense

 
168

 

 
417

 

 
585

Selling, general, and administrative expense
3

 
366

 

 
2,228

 

 
2,597

Amortization of intangible assets

 
2

 

 
444

 

 
446

Restructuring charges, net

 
10

 

 
52

 

 
62

Certain litigation charges

 
78

 

 
25

 

 
103

Other operating (income) expense, net

 
(259
)
 

 
511

 
(101
)
 
151

Operating profit (loss)
(3
)
 
(276
)
 

 
1,539

 
(24
)
 
1,236

Other non-operating income, net

 
(160
)
 
(164
)
 
(504
)
 
642

 
(186
)
Interest expense
99

 
465

 
103

 
217

 
(642
)
 
242

Equity in net (income) loss of subsidiaries
(1,175
)
 
(830
)
 
(1,114
)
 

 
3,119

 

Income (loss) before income taxes
1,073

 
249

 
1,175

 
1,826

 
(3,143
)
 
1,180

Income tax (benefit) provision
(2
)
 
(104
)
 

 
209

 

 
103

Net income (loss)
1,075

 
353

 
1,175

 
1,617

 
(3,143
)
 
1,077

Net (income) loss attributable to noncontrolling interests

 

 

 
(2
)
 

 
(2
)
Net income (loss) attributable to Medtronic
1,075

 
353

 
1,175

 
1,615

 
(3,143
)
 
1,075

Other comprehensive income (loss), net of tax
(584
)
 
(308
)
 
(584
)
 
(604
)
 
1,496

 
(584
)
Other comprehensive loss attributable to
noncontrolling interests

 

 

 
(2
)
 

 
(2
)
Total comprehensive income (loss)
$
491

 
$
45

 
$
591

 
$
1,011

 
$
(1,647
)
 
$
491

Consolidating Statement of Comprehensive Income
Three Months Ended July 28, 2017
Medtronic Senior Notes and Medtronic Luxco Senior Notes
(in millions)
Medtronic plc
 
Medtronic, Inc.
 
Medtronic Luxco
 
Subsidiary Non-guarantors
 
Consolidating
Adjustments
 
Total
Net sales
$

 
$
303

 
$

 
$
7,390

 
$
(303
)
 
$
7,390

 
 
 
 
 
 
 
 
 
 
 
 
Costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of products sold

 
225

 

 
2,322

 
(195
)
 
2,352

Research and development expense

 
159

 

 
390

 

 
549

Selling, general, and administrative expense
3

 
339

 

 
2,238

 

 
2,580

Amortization of intangible assets

 
2

 

 
452

 

 
454

Restructuring charges, net

 
1

 

 
7

 

 
8

Other operating (income) expense, net
13

 
(369
)
 

 
526

 
(105
)
 
65

Operating profit (loss)
(16
)
 
(54
)
 

 
1,455

 
(3
)
 
1,382

Other non-operating income, net

 
(78
)
 
(110
)
 
(334
)
 
423

 
(99
)
Interest expense
49

 
441

 
35

 
184

 
(423
)
 
286

Equity in net (income) loss of subsidiaries
(1,079
)
 
(338
)
 
(1,004
)
 

 
2,421

 

Income (loss) before income taxes
1,014

 
(79
)
 
1,079

 
1,605

 
(2,424
)
 
1,195

Income tax (benefit) provision
(2
)
 
(118
)
 

 
306

 

 
186

Net income (loss)
1,016

 
39

 
1,079

 
1,299

 
(2,424
)
 
1,009

Net loss attributable to noncontrolling interests

 

 

 
7

 

 
7

Net income (loss) attributable to Medtronic
1,016

 
39

 
1,079

 
1,306

 
(2,424
)
 
1,016

Other comprehensive income (loss), net of tax
689

 
578

 
689

 
680

 
(1,947
)
 
689

Other comprehensive loss attributable to
noncontrolling interests

 

 

 
7

 

 
7

Total comprehensive income (loss)
$
1,705

 
$
617

 
$
1,768

 
$
1,986

 
$
(4,371
)
 
$
1,705

Condensed Consolidating Balance Sheet
July 27, 2018
Medtronic Senior Notes and Medtronic Luxco Senior Notes

(in millions)
Medtronic plc
 
Medtronic, Inc.
 
Medtronic Luxco
 
Subsidiary Non-guarantors
 
Consolidating
Adjustments
 
Total
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
24

 
$
390

 
$
3,966

 
$

 
$
4,380

Investments

 

 

 
6,624

 

 
6,624

Accounts receivable, net

 

 

 
5,674

 

 
5,674

Inventories, net

 
163

 

 
3,659

 
(141
)
 
3,681

Intercompany receivable
68

 
12,402

 

 
25,257

 
(37,727
)
 

Other current assets
16

 
221

 
1

 
1,863

 

 
2,101

Total current assets
84

 
12,810

 
391

 
47,043

 
(37,868
)
 
22,460

Property, plant, and equipment, net

 
1,412

 

 
3,112

 

 
4,524

Goodwill

 
1,883

 

 
37,072

 

 
38,955

Other intangible assets, net

 
10

 

 
21,260

 

 
21,270

Tax assets

 
385

 

 
1,028

 

 
1,413

Investment in subsidiaries
60,974

 
74,304

 
61,996

 

 
(197,274
)
 

Intercompany loans receivable
3,000

 
6,519

 
20,663

 
34,131

 
(64,313
)
 

Other assets

 
242

 

 
857

 

 
1,099

Total assets
$
64,058

 
$
97,565

 
$
83,050

 
$
144,503

 
$
(299,455
)
 
$
89,721

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Current debt obligations
$

 
$

 
$
1,224

 
$
321

 
$

 
$
1,545

Accounts payable
54

 
505

 

 
1,230

 

 
1,789

Intercompany payable
2

 
17,814

 
7,494

 
12,417

 
(37,727
)
 

Accrued compensation
19

 
505

 

 
847

 

 
1,371

Accrued income taxes

 

 

 
784

 

 
784

Other accrued expenses
17

 
603

 
15

 
2,988

 

 
3,623

Total current liabilities
92

 
19,427

 
8,733

 
18,587

 
(37,727
)
 
9,112

Long-term debt

 
20,598

 
844

 
2,236

 

 
23,678

Accrued compensation and retirement benefits

 
908

 

 
504

 

 
1,412

Accrued income taxes
10

 
560

 

 
2,472

 

 
3,042

Intercompany loans payable
13,732

 
14,379

 
19,499

 
16,703

 
(64,313
)
 

Deferred tax liabilities

 

 

 
1,347

 

 
1,347

Other liabilities

 
68

 

 
733

 

 
801

Total liabilities
13,834

 
55,940

 
29,076

 
42,582

 
(102,040
)
 
39,392

Shareholders’ equity
50,224

 
41,625

 
53,974

 
101,816

 
(197,415
)
 
50,224

Noncontrolling interests

 

 

 
105

 

 
105

Total equity
50,224

 
41,625

 
53,974

 
101,921

 
(197,415
)
 
50,329

Total liabilities and equity
$
64,058

 
$
97,565

 
$
83,050

 
$
144,503

 
$
(299,455
)
 
$
89,721

Condensed Consolidating Balance Sheet
April 27, 2018
Medtronic Senior Notes and Medtronic Luxco Senior Notes

(in millions)
Medtronic plc
 
Medtronic, Inc.
 
Medtronic Luxco
 
Subsidiary Non-guarantors
 
Consolidating
Adjustments
 
Total
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
20

 
$
1

 
$
3,648

 
$

 
$
3,669

Investments

 
76

 

 
7,482

 

 
7,558

Accounts receivable, net

 

 

 
5,987

 

 
5,987

Inventories, net

 
165

 

 
3,539

 
(125
)
 
3,579

Intercompany receivable
37

 
23,480

 

 
33,929

 
(57,446
)
 

Other current assets
6

 
178

 

 
2,003

 

 
2,187

Total current assets
43

 
23,919

 
1

 
56,588

 
(57,571
)
 
22,980

Property, plant, and equipment, net

 
1,426

 

 
3,178

 

 
4,604

Goodwill

 
1,883

 

 
37,660

 

 
39,543

Other intangible assets, net

 
12

 

 
21,711

 

 
21,723

Tax assets

 
385

 

 
1,080

 

 
1,465

Investment in subsidiaries
60,381

 
73,585

 
61,461

 

 
(195,427
)
 

Intercompany loans receivable
3,000

 
6,519

 
19,337

 
34,196

 
(63,052
)
 

Other assets

 
223

 

 
855

 

 
1,078

Total assets
$
63,424

 
$
107,952

 
$
80,799

 
$
155,268

 
$
(316,050
)
 
$
91,393

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Current debt obligations
$

 
$

 
$
1,696

 
$
362

 
$

 
$
2,058

Accounts payable

 
381

 

 
1,247

 

 
1,628

Intercompany payable

 
28,401

 
5,542

 
23,503

 
(57,446
)
 

Accrued compensation
3

 
787

 

 
1,198

 

 
1,988

Accrued income taxes

 

 

 
979

 

 
979

Other accrued expenses
16

 
359

 
4

 
3,052

 

 
3,431

Total current liabilities
19

 
29,928

 
7,242

 
30,341

 
(57,446
)
 
10,084

Long-term debt

 
20,598

 
844

 
2,257

 

 
23,699

Accrued compensation and retirement benefits

 
902

 

 
523

 

 
1,425

Accrued income taxes
10

 
531

 

 
2,510

 

 
3,051

Intercompany loans payable
12,675

 
14,339

 
19,335

 
16,703

 
(63,052
)
 

Deferred tax liabilities

 

 

 
1,423

 

 
1,423

Other liabilities

 
68

 

 
821

 

 
889

Total liabilities
12,704

 
66,366

 
27,421

 
54,578

 
(120,498
)
 
40,571

Shareholders' equity
50,720

 
41,586

 
53,378

 
100,588

 
(195,552
)
 
50,720

Noncontrolling interests

 

 

 
102

 

 
102

Total equity
50,720

 
41,586

 
53,378

 
100,690

 
(195,552
)
 
50,822

Total liabilities and equity
$
63,424

 
$
107,952

 
$
80,799

 
$
155,268

 
$
(316,050
)
 
$
91,393

Condensed Consolidating Statement of Cash Flows
Three Months Ended July 27, 2018
Medtronic Senior Notes and Medtronic Luxco Senior Notes

(in millions)
Medtronic plc
 
Medtronic, Inc.
 
Medtronic Luxco
 
Subsidiary Non-guarantors
 
Consolidating
Adjustments
 
Total
Operating Activities:
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
(6
)
 
$
(387
)
 
$
72

 
$
2,023

 
$

 
$
1,702

Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Acquisitions, net of cash acquired

 

 

 
(104
)
 

 
(104
)
Additions to property, plant, and equipment

 
(49
)
 

 
(242
)
 

 
(291
)
Purchases of investments

 

 

 
(982
)
 

 
(982
)
Sales and maturities of investments

 
76

 

 
1,944

 

 
2,020

Capital contribution paid

 
(32
)
 

 

 
32

 

Net cash provided by (used in) investing activities

 
(5
)
 

 
616

 
32

 
643

Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Change in current debt obligations, net

 

 
(472
)
 
(33
)
 

 
(505
)
Payments on long-term debt

 

 

 
(12
)
 

 
(12
)
Dividends to shareholders
(677
)
 

 

 

 

 
(677
)
Issuance of ordinary shares
450

 

 

 

 

 
450

Repurchase of ordinary shares
(824
)
 

 

 

 

 
(824
)
Net intercompany loan borrowings (repayments)
1,057

 
396

 
789

 
(2,242
)
 

 

Capital contribution received

 

 

 
32

 
(32
)
 

Other financing activities

 

 

 
(5
)
 

 
(5
)
Net cash provided by (used in) financing activities
6

 
396

 
317

 
(2,260
)
 
(32
)
 
(1,573
)
Effect of exchange rate changes on cash and cash equivalents

 

 

 
(61
)
 

 
(61
)
Net change in cash and cash equivalents

 
4

 
389

 
318

 

 
711

Cash and cash equivalents at beginning of period

 
20

 
1

 
3,648

 

 
3,669

Cash and cash equivalents at end of period
$

 
$
24

 
$
390

 
$
3,966

 
$

 
$
4,380

Condensed Consolidating Statement of Cash Flows
Three Months Ended July 28, 2017
Medtronic Senior Notes and Medtronic Luxco Senior Notes

(in millions)
Medtronic plc
 
Medtronic, Inc.
 
Medtronic Luxco
 
Subsidiary Non-guarantors
 
Consolidating
Adjustments
 
Total
Operating Activities:
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
24

 
$
(400
)
 
$
160

 
$
953

 
$

 
$
737

Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Additions to property, plant, and equipment

 
(68
)
 

 
(210
)
 

 
(278
)
Purchases of investments

 

 

 
(615
)
 

 
(615
)
Sales and maturities of investments

 

 

 
971

 

 
971

Other investing activities, net

 

 

 
5

 

 
5

Net cash provided by (used in) investing activities

 
(68
)
 

 
151

 

 
83

Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Change in current debt obligations, net

 

 
572

 
(3
)
 

 
569

Issuance of long-term debt

 

 

 
18

 

 
18

Payments on long-term debt

 

 

 
(8
)
 

 
(8
)
Dividends to shareholders
(625
)
 

 

 

 

 
(625
)
Issuance of ordinary shares
143

 

 

 

 

 
143

Repurchase of ordinary shares
(1,233
)
 

 

 

 

 
(1,233
)
Net intercompany loan borrowings (repayments)
1,691

 
486

 
(708
)
 
(1,469
)
 

 

Other financing activities

 

 

 
(5
)
 

 
(5
)
Net cash provided by (used in) financing activities
(24
)
 
486

 
(136
)
 
(1,467
)
 

 
(1,141
)
Effect of exchange rate changes on cash and cash equivalents

 

 

 
45

 

 
45

Net change in cash and cash equivalents

 
18

 
24

 
(318
)
 

 
(276
)
Cash and cash equivalents at beginning of period

 
45

 
5

 
4,917

 

 
4,967

Cash and cash equivalents at end of period
$

 
$
63

 
$
29

 
$
4,599

 
$

 
$
4,691

Consolidating Statement of Comprehensive Income
Three Months Ended July 27, 2018
CIFSA Senior Notes
(in millions)
Medtronic plc
 
CIFSA
 
CIFSA Subsidiary Guarantors
 
Subsidiary Non-guarantors
 
Consolidating
Adjustments
 
Total
Net sales
$

 
$

 
$

 
$
7,384

 
$

 
$
7,384

 
 
 
 
 
 
 
 
 
 
 
 
Costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of products sold

 

 

 
2,204

 

 
2,204

Research and development expense

 

 

 
585

 

 
585

Selling, general, and administrative expense
3

 

 
1

 
2,593

 

 
2,597

Amortization of intangible assets

 

 

 
446

 

 
446

Restructuring charges, net

 

 

 
62

 

 
62

Certain litigation charges

 

 

 
103

 

 
103

Other operating expense, net

 

 

 
146

 
5

 
151

Operating profit (loss)
(3
)
 

 
(1
)
 
1,245

 
(5
)
 
1,236

Other non-operating income, net

 
(11
)
 
(170
)
 
(273
)
 
268

 
(186
)
Interest expense
99

 
21

 
103

 
287

 
(268
)
 
242

Equity in net (income) loss of subsidiaries
(1,175
)
 
(955
)
 
(1,109
)
 

 
3,239

 

Income (loss) before income taxes
1,073

 
945

 
1,175

 
1,231

 
(3,244
)
 
1,180

Income tax (benefit) provision
(2
)
 

 

 
105

 

 
103

Net income (loss)
1,075

 
945

 
1,175

 
1,126

 
(3,244
)
 
1,077

Net loss attributable to noncontrolling interests

 

 

 
(2
)
 

 
(2
)
Net income (loss) attributable to Medtronic
1,075

 
945

 
1,175

 
1,124

 
(3,244
)
 
1,075

Other comprehensive income (loss), net of tax
(584
)
 
(239
)
 
(584
)
 
(584
)
 
1,407

 
(584
)
Other comprehensive loss attributable to
non-controlling interests

 

 

 
(2
)
 

 
(2
)
Total comprehensive income (loss)
491

 
706

 
591

 
540

 
(1,837
)
 
491

Consolidating Statement of Comprehensive Income
Three Months Ended July 28, 2017
CIFSA Senior Notes
(in millions)
Medtronic plc
 
CIFSA
 
CIFSA Subsidiary Guarantors
 
Subsidiary Non-guarantors
 
Consolidating
Adjustments
 
Total
Net sales
$

 
$

 
$

 
$
7,390

 
$

 
$
7,390

 
 
 
 
 
 
 
 
 
 
 
 
Costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of products sold

 

 

 
2,352

 

 
2,352

Research and development expense

 

 

 
549

 

 
549

Selling, general, and administrative expense
3

 

 

 
2,577

 

 
2,580

Amortization of intangible assets

 

 

 
454

 

 
454

Restructuring charges, net

 

 

 
8

 

 
8

Other operating expense, net
13

 
1

 

 
51

 

 
65

Operating profit (loss)
(16
)
 
(1
)
 

 
1,399

 

 
1,382

Other non-operating income,net

 
(16
)
 
(112
)
 
(119
)
 
148

 
(99
)
Interest expense
49

 
23

 
35

 
327

 
(148
)
 
286

Equity in net (income) loss of subsidiaries
(1,079
)
 
(875
)
 
(1,002
)
 

 
2,956

 

Income (loss) before income taxes
1,014

 
867

 
1,079

 
1,191

 
(2,956
)
 
1,195

Income tax (benefit) provision
(2
)
 

 

 
188

 

 
186

Net income (loss)
1,016

 
867

 
1,079

 
1,003

 
(2,956
)
 
1,009

Net loss attributable to noncontrolling interests

 

 

 
7

 


7

Net income (loss) attributable to Medtronic
1,016

 
867

 
1,079

 
1,010

 
(2,956
)

1,016

Other comprehensive income (loss), net of tax
689

 
194

 
689

 
689

 
(1,572
)
 
689

Other comprehensive loss attributable to
noncontrolling interests

 

 

 
7

 

 
7

Total comprehensive income (loss)
$
1,705

 
$
1,061

 
$
1,768

 
$
1,699

 
$
(4,528
)
 
$
1,705

Condensed Consolidating Balance Sheet
July 27, 2018
CIFSA Senior Notes
(in millions)
Medtronic plc
 
CIFSA
 
CIFSA Subsidiary Guarantors
 
Subsidiary Non-guarantors
 
Consolidating
Adjustments
 
Total
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$

 
$
390

 
$
3,990

 
$

 
$
4,380

Investments

 

 
1

 
6,623

 

 
6,624

Accounts receivable, net

 

 

 
5,674

 

 
5,674

Inventories, net

 

 

 
3,681

 

 
3,681

Intercompany receivable
68

 

 
1,348

 
7,490

 
(8,906
)
 

Other current assets
16

 

 
1

 
2,084

 

 
2,101

Total current assets
84

 

 
1,740

 
29,542

 
(8,906
)
 
22,460

Property, plant, and equipment, net

 

 

 
4,524

 

 
4,524

Goodwill

 

 

 
38,955

 

 
38,955

Other intangible assets, net

 

 

 
21,270

 

 
21,270

Tax assets

 

 

 
1,413

 

 
1,413

Investment in subsidiaries
60,974

 
31,963

 
60,647

 

 
(153,584
)
 

Intercompany loans receivable
3,000

 
1,088

 
20,663

 
19,600

 
(44,351
)
 

Other assets

 

 

 
1,099

 

 
1,099

Total assets
$
64,058

 
$
33,051

 
$
83,050

 
$
116,403

 
$
(206,841
)
 
$
89,721

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Current debt obligations
$

 
$

 
$
1,224

 
$
321

 
$

 
$
1,545

Accounts payable
54

 

 

 
1,735

 

 
1,789

Intercompany payable
2

 
1,287

 
7,489

 
128

 
(8,906
)
 

Accrued compensation
19

 

 

 
1,352

 

 
1,371

Accrued income taxes

 

 

 
784

 

 
784

Other accrued expenses
17

 
13

 
20

 
3,573

 

 
3,623

Total current liabilities
92

 
1,300

 
8,733

 
7,893

 
(8,906
)
 
9,112

Long-term debt

 
2,106

 
844

 
20,728

 

 
23,678

Accrued compensation and retirement benefits

 

 

 
1,412

 

 
1,412

Accrued income taxes
10

 

 

 
3,032

 

 
3,042

Intercompany loans payable
13,732

 
101

 
19,499

 
11,019

 
(44,351
)
 

Deferred tax liabilities

 

 

 
1,347

 

 
1,347

Other liabilities

 

 

 
801

 

 
801

Total liabilities
13,834

 
3,507

 
29,076

 
46,232

 
(53,257
)
 
39,392

Shareholders’ equity
50,224

 
29,544

 
53,974

 
70,066

 
(153,584
)
 
50,224

Noncontrolling interests

 

 

 
105

 

 
105

Total equity
50,224

 
29,544

 
53,974

 
70,171

 
(153,584
)
 
50,329

Total liabilities and equity
$
64,058

 
$
33,051

 
$
83,050

 
$
116,403

 
$
(206,841
)
 
$
89,721

Condensed Consolidating Balance Sheet
April 27, 2018
CIFSA Senior Notes
(in millions)
Medtronic plc
 
CIFSA
 
CIFSA Subsidiary Guarantors
 
Subsidiary Non-guarantors
 
Consolidating
Adjustments
 
Total
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$

 
$
1

 
$
3,668

 
$

 
$
3,669

Investments

 

 

 
7,558

 

 
7,558

Accounts receivable, net

 

 

 
5,987

 

 
5,987

Inventories, net

 

 

 
3,579

 

 
3,579

Intercompany receivable
37

 

 
1,343

 
5,560

 
(6,940
)
 

Other current assets
6

 

 

 
2,181

 

 
2,187

Total current assets
43

 

 
1,344

 
28,533

 
(6,940
)
 
22,980

Property, plant, and equipment, net

 

 

 
4,604

 

 
4,604

Goodwill

 

 

 
39,543

 

 
39,543

Other intangible assets, net

 

 

 
21,723

 

 
21,723

Tax assets

 

 

 
1,465

 

 
1,465

Investment in subsidiaries
60,381

 
31,149

 
60,122

 

 
(151,652
)
 

Intercompany loans receivable
3,000

 
1,291

 
19,337

 
19,436

 
(43,064
)
 

Other assets

 

 

 
1,078

 

 
1,078

Total assets
$
63,424

 
$
32,440

 
$
80,803

 
$
116,382

 
$
(201,656
)
 
$
91,393

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Current debt obligations
$

 
$

 
$
1,696

 
$
362

 
$

 
$
2,058

Accounts payable

 

 

 
1,628

 

 
1,628

Intercompany payable

 
1,283

 
5,542

 
115

 
(6,940
)
 

Accrued compensation
3

 

 

 
1,985

 

 
1,988

Accrued income taxes

 

 

 
979

 

 
979

Other accrued expenses
16

 
21

 
8

 
3,386

 

 
3,431

Total current liabilities
19

 
1,304

 
7,246

 
8,455

 
(6,940
)
 
10,084

Long-term debt

 
2,111

 
844

 
20,744

 

 
23,699

Accrued compensation and retirement benefits

 

 

 
1,425

 

 
1,425

Accrued income taxes
10

 

 

 
3,041

 

 
3,051

Intercompany loans payable
12,675

 
100

 
19,335

 
10,954

 
(43,064
)
 

Deferred tax liabilities

 

 

 
1,423

 

 
1,423

Other liabilities

 

 

 
889

 

 
889

Total liabilities
12,704

 
3,515

 
27,425

 
46,931

 
(50,004
)
 
40,571

Shareholders' equity
50,720

 
28,925

 
53,378

 
69,349

 
(151,652
)
 
50,720

Noncontrolling interests

 

 

 
102

 

 
102

Total Equity
50,720

 
28,925

 
53,378

 
69,451

 
(151,652
)
 
50,822

Total liabilities and equity
$
63,424

 
$
32,440

 
$
80,803

 
$
116,382

 
$
(201,656
)
 
$
91,393

Condensed Consolidating Statement of Cash Flows
Three Months Ended July 27, 2018
CIFSA Senior Notes
(in millions)
Medtronic plc
 
CIFSA
 
CIFSA Subsidiary Guarantors
 
Subsidiary Non-guarantors
 
Consolidating
Adjustments
 
Total
Operating Activities:
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
(6
)
 
$
(24
)
 
$
77

 
$
1,655

 
$

 
$
1,702

Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Acquisitions, net of cash acquired

 

 

 
(104
)
 

 
(104
)
Proceeds from sale of businesses

 

 

 

 

 

Additions to property, plant, and equipment

 

 

 
(291
)
 

 
(291
)
Purchases of investments

 

 

 
(982
)
 

 
(982
)
Sales and maturities of investments

 

 

 
2,020

 

 
2,020

Capital contribution paid

 
(185
)
 

 

 
185

 

Net cash provided by (used in) investing activities

 
(185
)
 

 
643

 
185

 
643

Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Change in current debt obligations, net

 

 
(473
)
 
(32
)
 

 
(505
)
Payments on long-term debt

 

 

 
(12
)
 

 
(12
)
Dividends to shareholders
(677
)
 

 

 

 

 
(677
)
Issuance of ordinary shares
450

 

 

 

 

 
450

Repurchase of ordinary shares
(824
)
 

 

 

 

 
(824
)
Net intercompany loan borrowings (repayments)
1,057

 
209

 
785

 
(2,051
)
 

 

Capital contribution received

 

 

 
185

 
(185
)
 

Other financing activities

 

 

 
(5
)
 

 
(5
)
Net cash provided by (used in) financing activities
6

 
209

 
312

 
(1,915
)
 
(185
)
 
(1,573
)
Effect of exchange rate changes on cash and cash equivalents

 

 

 
(61
)
 

 
(61
)
Net change in cash and cash equivalents

 

 
389

 
322

 

 
711

Cash and cash equivalents at beginning of period

 

 
1

 
3,668

 

 
3,669

Cash and cash equivalents at end of period
$

 
$

 
$
390

 
$
3,990

 
$

 
$
4,380

Condensed Consolidating Statement of Cash Flows
Three Months Ended July 28, 2017
CIFSA Senior Notes
(in millions)
Medtronic plc
 
CIFSA
 
CIFSA Subsidiary Guarantors
 
Subsidiary Non-guarantors
 
Consolidating
Adjustments
 
Total
Operating Activities:
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
24

 
$
234

 
$
162

 
$
567

 
$
(250
)
 
$
737

Investing Activities:
 
 
 
 
 
 
 
 
 
 
 
Additions to property, plant, and equipment

 

 

 
(278
)
 

 
(278
)
Purchases of investments

 

 

 
(615
)
 

 
(615
)
Sales and maturities of investments

 

 

 
971

 

 
971

Net (increase) decrease in intercompany loans

 

 

 

 

 

Intercompany dividend received

 

 

 

 

 

Capital contributions paid

 
(452
)
 

 

 
452

 

Other investing activities, net

 

 

 
5

 

 
5

Net cash provided by (used in) investing activities

 
(452
)
 

 
83

 
452

 
83

Financing Activities:
 
 
 
 
 
 
 
 
 
 
 
Change in current debt obligations, net

 

 
572

 
(3
)
 

 
569

Issuance of long-term debt

 

 

 
18

 

 
18

Payments on long-term debt

 

 

 
(8
)
 

 
(8
)
Dividends to shareholders
(625
)
 

 

 

 

 
(625
)
Issuance of ordinary shares
143

 

 

 

 

 
143

Repurchase of ordinary shares
(1,233
)
 

 

 

 

 
(1,233
)
Net intercompany loan borrowings (repayments)
1,691

 
185

 
(709
)
 
(1,167
)
 

 

Intercompany dividend paid

 

 

 
(250
)
 
250

 

Capital contributions received

 

 

 
452

 
(452
)
 

Other financing activities

 

 

 
(5
)
 

 
(5
)
Net cash provided by (used in) financing activities
(24
)
 
185

 
(137
)
 
(963
)
 
(202
)
 
(1,141
)
Effect of exchange rate changes on cash and cash equivalents

 

 

 
45

 

 
45

Net change in cash and cash equivalents

 
(33
)
 
25

 
(268
)
 

 
(276
)
Cash and cash equivalents at beginning of period

 
33

 
5

 
4,929

 

 
4,967

Cash and cash equivalents at end of period
$

 
$

 
$
30

 
$
4,661

 
$

 
$
4,691