10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

x Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934. For the fiscal year ended April 26, 2019.

o Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from __________ to __________

Commission File No. 1-36820

®

MEDTRONIC PUBLIC LIMITED COMPANY

(Exact name of registrant as specified in its charter)

Ireland	98-1183488
(Jurisdiction of incorporation)	(I.R.S. Employer Identification No.)

20 On Hatch, Lower Hatch Street

Dublin 2, Ireland

(Address of principal executive office)

+353 1 438-1700

(Registrant's telephone number)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Ordinary shares, par value $0.0001 per share	MDT	New York Stock Exchange, Inc.
Floating Rate Notes due 2021	MDT/21	New York Stock Exchange, Inc.
0.000% Notes due 2021	MDT/21A	New York Stock Exchange, Inc.
0.375% Notes due 2023	MDT/23B	New York Stock Exchange, Inc.
1.125% Notes due 2027	MDT/27	New York Stock Exchange, Inc.
1.625% Notes due 2031	MDT/31	New York Stock Exchange, Inc.
2.250% Notes due 2039	MDT/39A	New York Stock Exchange, Inc.

Securities registered pursuant to section 12(g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No o

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes o  No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer x  Accelerated filer o  Non-accelerated filer o  Smaller reporting company o Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o  No x

Aggregate market value of voting and non-voting common equity of Medtronic plc held by non-affiliates of the registrant as of October 26, 2018, based on the closing price of $89.75 as reported on the New York Stock Exchange: approximately $120.8 billion. Number of Ordinary Shares outstanding on June 18, 2019: 1,341,156,703

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Proxy Statement for its 2019 Annual General Meeting are incorporated by reference into Part III hereof.

TABLE OF CONTENTS

Item	Description	Page
	PART I
1.	Business	3
1A.	Risk Factors	12
1B.	Unresolved Staff Comments	23
2.	Properties	24
3.	Legal Proceedings	24
4.	Mine Safety Disclosures	24
	PART II
5.	Market for Medtronic’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities	25
6.	Selected Financial Data	28
7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
7A.	Quantitative and Qualitative Disclosures About Market Risk	52
8.	Financial Statements and Supplementary Data	53
9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	127
9A.	Controls and Procedures	127
9B.	Other Information	127
	PART III
10.	Directors, Executive Officers, and Corporate Governance	128
11.	Executive Compensation	129
12.	Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters	129
13.	Certain Relationships and Related Transactions, and Director Independence	129
14.	Principal Accounting Fees and Services	129
	PART IV
15.	Exhibits and Financial Statement Schedules	130
16.	Form 10-K Summary	137
	Signatures	138

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K, and other written reports of Medtronic public limited company, organized under the laws of Ireland (together with its consolidated subsidiaries, Medtronic, the Company, or we, us, or our), and oral statements made by or with the approval of one of the Company’s executive officers from time to time, may include “forward-looking” statements. All statements other than statements of historical fact contained in this Annual Report on Form 10-K, including statements regarding our future results of operations and financial position, business strategy and plans, objectives of management for future operations and current expectations or forecasts of future results, are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Our forward-looking statements may include statements related to our growth and growth strategies, developments in the markets for our products, therapies and services, financial results, product development launches and effectiveness, research and development strategy, regulatory approvals, competitive strengths, restructuring and cost-saving initiatives, intellectual property rights, litigation and tax matters, government investigations, mergers and acquisitions, divestitures, market acceptance of our products, therapies and services, accounting estimates, financing activities, ongoing contractual obligations, working capital adequacy, value of our investments, our effective tax rate, our expected returns to shareholders, and sales efforts. In some cases, such statements may be identified by the use of terminology such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “looking ahead,” “may,” “plan,” “possible,” “potential,” “project,” “should,” “will,” and similar words or expressions. Forward-looking statements in this Annual Report include, but are not limited to, statements regarding our ability to drive long-term shareholder value, development and future launches of products and continued or future acceptance of products, therapies and services in our segments; expected timing for completion of research studies relating to our products; market positioning and performance of our products, including stabilization of certain product markets; divestitures and the potential benefits thereof; the costs and benefits of integrating previous acquisitions; anticipated timing for United States (U.S.) Food and Drug Administration (U.S. FDA) and non-U.S. regulatory approval of new products; increased presence in new markets, including markets outside the U.S.; changes in the market and our market share; acquisitions and investment initiatives, as well as integration of acquired companies into our operations; the resolution of tax matters; the effectiveness of our development activities in reducing patient care costs and hospital stay lengths; our approach towards cost containment; our expectations regarding health care costs, including potential changes to reimbursement policies and pricing pressures; our expectations regarding changes to patient standards of care; our ability to identify and maintain successful business partnerships; the elimination of certain positions or costs related to restructuring initiatives; outcomes in our litigation matters and government investigations; general economic conditions; the adequacy of available working capital and our working capital needs; our payment of dividends and redemption of shares; the continued strength of our balance sheet and liquidity; our accounts receivable exposure; and the potential impact of our compliance with governmental regulations and accounting guidance.

We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, results of operations and cash flows. These forward-looking statements speak only as of the date of this Annual Report on Form 10-K and are subject to a number of risks, uncertainties and assumptions described in the “Risk Factors” section and elsewhere in this Annual Report on Form 10-K. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. One must carefully consider forward-looking statements and understand that such forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, and involve a variety of risks and uncertainties, known and unknown, including, among others, those discussed in the sections entitled “Government Regulation and Other Considerations” within “Item 1. Business” and “Item 1A. Risk Factors” in this Annual Report on Form 10-K, as well as those related to:

• competition in the medical device industry;

• reduction or interruption in our supply;

• laws and governmental regulations;

• quality problems;

• liquidity shortfalls;

• decreasing prices and pricing pressure;

• fluctuations in currency exchange rates;

• changes in applicable tax rates;

• positions taken by taxing authorities;

• adverse regulatory action;

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• delays in regulatory approvals;

• litigation results;

• self-insurance;

• commercial insurance;

• health care policy changes;

• international operations;

• cybersecurity incidents;

• failure to complete or achieve the intended benefits of acquisitions or divestitures; or

• disruption of our current plans and operations.

Consequently, no forward-looking statement may be guaranteed and actual results may vary materially from those projected in the forward-looking statements. We intend to take advantage of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 regarding our forward-looking statements, and are including this sentence for the express purpose of enabling us to use the protections of the safe harbor with respect to all forward-looking statements. While we may elect to update these forward-looking statements at some point in the future, whether as a result of any new information, future events, or otherwise, we have no current intention of doing so except to the extent required by applicable law.

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PART I

Item 1. Business

OVERVIEW

Medtronic plc, headquartered in Dublin, Ireland, is among the world's largest medical technology, services, and solutions companies - alleviating pain, restoring health, and extending life for millions of people around the world. Medtronic was founded in 1949 and today serves hospitals, physicians, clinicians, and patients in more than 150 countries worldwide. We remain committed to a mission written by our founder in 1960 that directs us “to contribute to human welfare by the application of biomedical engineering in the research, design, manufacture, and sale of products to alleviate pain, restore health, and extend life.”

With innovation and market leadership, we have pioneered advances in medical technology in all of our businesses. Our commitment to enhance our offerings by developing and acquiring new products, wrap-around programs, and solutions to meet the needs of a broader set of stakeholders is driven by the following primary strategies:

• Therapy Innovation: Delivering a strong launch cadence of meaningful therapies and procedures.

• Globalization: Addressing the inequity in health care access globally, primarily in emerging markets.

• Economic Value: Becoming a leader in value-based health care by offering new services and solutions to improve outcomes and efficiencies, lower costs by reducing hospitalizations, improve remote clinical management, and increase patient engagement.

Our primary customers include hospitals, clinics, third-party health care providers, distributors, and other institutions, including governmental health care programs and group purchasing organizations (GPOs).

Medtronic plc is the successor to Medtronic, Inc., a Minnesota corporation. Medtronic, Inc. and Covidien plc (Covidien) were combined under and became subsidiaries of Medtronic plc on January 26, 2015.

On July 29, 2017, we completed the divestiture of our Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses. Among the product lines included in the divestiture were the dental and animal health, chart paper, wound care, incontinence, electrodes, SharpSafety, thermometry, perinatal protection, blood collection, compression, and enteral feeding offerings. Prior to the divestiture, these businesses were included within the Minimally Invasive Therapies Group segment.

We have four operating and reportable segments that primarily develop, manufacture, distribute, and sell device-based medical therapies and services: the Cardiac and Vascular Group, the Minimally Invasive Therapies Group, the Restorative Therapies Group, and the Diabetes Group.

For more information regarding our segments, please see Note 21 to the consolidated financial statements in "Item 8. Financial Statements and Supplementary Data" in this Annual Report on Form 10-K.

CARDIAC AND VASCULAR GROUP

The Cardiac and Vascular Group is made up of the Cardiac Rhythm & Heart Failure, Coronary & Structural Heart, and Aortic, Peripheral & Venous (formerly Aortic & Peripheral Vascular) divisions. The primary medical specialists who use our Cardiac and Vascular products include electrophysiologists, implanting cardiologists, heart failure specialists, cardiovascular, cardiothoracic, and vascular surgeons, and interventional cardiologists and radiologists.

Cardiac Rhythm & Heart Failure

Our Cardiac Rhythm & Heart Failure division develops, manufactures, and markets products for the diagnosis, treatment, and management of heart rhythm disorders and heart failure. Our products include implantable devices, leads and delivery systems, products for the treatment of atrial fibrillation (AF), products designed to reduce surgical site infections, information systems for the management of patients with Cardiac Rhythm & Heart Failure devices, ventricular assist systems, and an integrated health solutions business. Principal products and services offered include:

• Implantable cardiac pacemakers including the Azure MRI SureScan, Adapta, Advisa MRI SureScan, and Micra Transcatheter Pacing System, which is leadless and does not have a subcutaneous device pocket like a conventional pacemaker.

• Implantable cardioverter defibrillators (ICDs), including the Visia AF and Evera MRI SureScan, and defibrillator leads, including the Sprint Quattro Secure lead.

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• Implantable cardiac resynchronization therapy devices (CRT-Ds and CRT-Ps) including the Claria/Amplia/Compia family of MRI Quad CRT-D SureScan systems and the Percepta/Serena/Solara family of MRI Quad CRT-P SureScan systems.

• AF ablation products including the Arctic Front Cardiac CryoAblation Catheter System, designed for pulmonary vein isolation in the treatment of patients with drug refractory paroxysmal AF.

• Insertable cardiac monitoring systems including the Reveal LINQ, which is used to record the heart’s electrical activity before, during, and after transient symptoms such as syncope (i.e., fainting) and palpitations to assist in diagnosis.

• Mechanical circulatory support products including miniaturized implantable heart pumps, or ventricular assist devices, patient accessories and surgical tools to treat patients suffering from advanced heart failure.

• TYRX products including the Cardiac and Neuro Absorbable Antibacterial Envelopes, which are designed to stabilize electronic implantable devices and help prevent infection associated with implantable pacemakers, defibrillators, and spinal cord neurostimulators.

• Remote monitoring services and patient-centered software to enable efficient care coordination and specialized telehealth nurse support as well as services related to hospital operational efficiency.

Coronary & Structural Heart

Our Coronary & Structural Heart division includes therapies to treat coronary artery disease and heart valve disorders. Our products include coronary stents and related delivery systems, including a broad line of balloon angioplasty catheters, guide catheters, guide wires, diagnostic catheters, and accessories, as well as products for the repair and replacement of heart valves, perfusion systems, positioning and stabilization systems for beating heart revascularization surgery, and surgical ablation products. Principal products offered include:

• CoreValve family of aortic valves, including the CoreValve Evolut R and CoreValve Evolut PRO systems for transcatheter aortic valve replacement.

• Percutaneous Coronary Intervention stent products including our Resolute Onyx drug-eluting stent.

• Surgical valve replacement and repair products for damaged or diseased heart valves, including both tissue and mechanical valves, blood-handling products that form a circulatory support system to maintain and monitor blood circulation and coagulation status, oxygen supply, and body temperature during arrested heart surgery, and surgical ablation systems and positioning and stabilization technologies.

Aortic, Peripheral & Venous

Our Aortic, Peripheral & Venous division is comprised of a comprehensive line of products and therapies to treat aortic disease, such as aneurysms, dissections, and transections, as well as peripheral vascular disease, and venous disease. Our products include endovascular stent graft systems, peripheral drug coated balloons, stent and angioplasty systems, and carotid embolic protection systems for the treatment of vascular disease outside the heart, and products for superficial and deep venous disease. Principal products offered include:

• Endovascular stent grafts and accessories including the Endurant II Stent Grant System for the treatment of abdominal aortic aneurysms, the Valiant Navion Thoracic Stent Grant System for thoracic endovascular aortic repair procedures, and the Heli-FX EndoAnchor System.

• Percutaneous angioplasty balloons including the IN.PACT family of drug-coated balloons, vascular stents, directional atherectomy products, and other procedure support tools.

• Products to treat superficial venous diseases in the lower extremities including the ClosureFast radiofrequency ablation system and the VenaSeal medical adhesive closure system.

MINIMALLY INVASIVE THERAPIES GROUP

The Minimally Invasive Therapies Group is made up of the Surgical Innovations and Respiratory, Gastrointestinal, & Renal divisions. Products and therapies of this group are used primarily by hospitals, physicians' offices, ambulatory care centers, and other alternate site healthcare providers. While less frequent, some products and therapies are also used in home settings.

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Surgical Innovations

Our Surgical Innovations division develops, manufactures, and markets advanced and general surgical products including surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, hernia mechanical devices, mesh implants, and gynecology products and therapies to treat diseases and conditions that are typically, but not exclusively, addressed by surgeons. Principal products and services offered include:

• Advanced stapling and energy products, including the Tri-Staple technology platform for endoscopic stapling, including the Endo GIA reloads and reinforced reloads with Tri-Staple Technology and the Endo GIA ultra universal stapler, the Signia and iDrive powered stapling systems, the LigaSure vessel sealing system with nano-coating, and the Sonicision cordless ultrasonic dissection system.

• Electrosurgical hardware and instruments, including the Valleylab FT10 energy platform, and the Force TriVerse electrosurgical pencils.

• Products designed for the treatment of hernias, including the AbsorbaTack absorbable mesh fixation device for hernia repair, the Symbotex composite mesh for surgical laparoscopic and open ventral hernia repair, and Parietex ProGrip, a self-gripping, biocompatible solution for inguinal hernias.

Respiratory, Gastrointestinal, & Renal

Our Respiratory, Gastrointestinal, & Renal division develops, manufactures, and markets products in the emerging fields of minimally invasive gastrointestinal and hepatologic diagnostics and therapies, patient monitoring, respiratory interventions including airway management and ventilation therapies, and for the treatment of renal disease. Principal products and services offered include:

• Gastrointestinal and endoscopy products, including the PillCam COLON, the Emprint ablation system with Thermosphere Technology, the HET Bipolar System, the Cool-tip radiofrequency ablation system, the Barrx platform through ablation with the Barrx 360 Express catheter, and the Bravo calibration-free reflux testing system.

• Airway, ventilation, and inhalation therapies products, including the Puritan Bennett 980 ventilator, the Newport e360 and HT70 ventilators, the TaperGuard Evac tube, Shiley Endotracheal Tubes, Shiley Tracheostomy Tubes, McGRATH MAC video laryngoscopes, and DAR Filters.

• Products focused on patient monitoring, including the Capnostream 35 portable respiratory monitor with Microstream technology, the Nellcor Bedside SpO2 patient monitoring system, the INVOS cerebral/somatic oximetry systems, the Bispectral Index (BIS) brain monitoring technology, and the INVOS Cerebral/Somatic Oximeter.

• Products providing solutions for the treatment of renal disease, including Palindrome, Mahurkar and Mahurkar Elite Dialysis Access Catheters for renal therapy, and other products designed for use in treatment of both acute and chronic renal failure conditions.

RESTORATIVE THERAPIES GROUP

The Restorative Therapies Group is made up of the Spine, Brain Therapies, Specialty Therapies, and Pain Therapies divisions. The primary medical specialists who use the products of this group include spinal surgeons, neurosurgeons, neurologists, pain management specialists, anesthesiologists, orthopedic surgeons, urologists, colorectal surgeons, urogynecologists, interventional radiologists, and ear, nose, and throat specialists.

Spine

Our Spine division develops, manufactures, and markets a comprehensive line of medical devices and implants used in the treatment of the spine and musculoskeletal system. Our Spine division also provides biologic solutions for the orthopedic and dental markets and, in concert with our Neurosurgery business, offers unique and highly differentiated imaging, navigation, power instruments, nerve monitoring, and Mazor robotic guidance systems used in robot assisted spine procedures. Principal products and services offered include:

• Products to treat a variety of conditions affecting the spine, including degenerative disc disease, spinal deformity, spinal tumors, fractures of the spine, and stenosis. These products include our CD HORIZON LEGACY and ELEVATE systems, and the CAPSTONE, CLYDESDALE, and ELEVATE interbody spacers.

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• Products that facilitate less invasive thoracolumbar surgeries, including the CD HORIZON SOLERA VOYAGER and LONGITUDE Percutaneous Fixation Systems.

• Products to treat conditions in the cervical region of the spine, including the ZEVO and ATLANTIS VISION ELITE Anterior Cervical Plate Systems, the VERTEX SELECT Reconstruction System, the INFINITY OCT System, and PRESTIGE LP Cervical Artificial Discs.

• Biologic solutions products, including our INFUSE Bone Graft (InductOs in the European Union (E.U.)), which contains a recombinant human bone morphogenetic protein, rhBMP-2, for certain spinal, trauma, and oral maxillofacial applications.

• Demineralized Bone Matrix products, including MagniFuse, GRAFTON/GRAFTON PLUS, and PROGENIX, and the MASTERGRAFT family of synthetic bone graft products - Matrix, Putty, and Granules.

Brain Therapies

Our Brain Therapies division develops, manufactures, and markets an integrated portfolio of devices and therapies for the treatment of neurological disorders and diseases, as well as surgical technologies designed to improve the precision and workflow of neuro procedures. Principal products and services offered include:

• Neurovascular products to treat diseases of the vasculature in and around the brain. This includes coils, neurovascular stent retrievers, and flow diversion products, as well as access and delivery products to support procedures. Products also include the Pipeline Flex Embolization Devices, endovascular treatments for large or giant wide-necked brain aneurysms, the portfolio of Solitaire revascularization devices for treatment of acute ischemic stroke, the Riptide Aspiration System and a portfolio of associated access catheters also for the treatment of acute ischemic stroke.

• Brain modulation products, including those for the treatment of the disabling symptoms of Parkinson's disease, essential tremor, refractory epilepsy, severe, treatment-resistant obsessive compulsive disorder (approved under a Humanitarian Device Exemption (HDE) in the U.S.), and chronic, intractable primary dystonia (approved under a HDE in the U.S.). Specifically, this includes our family of Activa Neurostimulators, including Activa SC (single-channel primary cell battery), Activa PC (dual channel primary cell battery), and Activa RC (dual channel rechargeable battery).

• Neurosurgery products, including platform technologies and implant therapies. Our StealthStation S8 Navigation System and O-arm Imaging System are both platforms used in cranial, spinal, sinus, and orthopedic procedures. Our Midas Rex Surgical Drills are used in cranial, spinal, ENT, and orthopedic procedures. Our CSF Management Portfolio is used in treating hydrocephalus and other conditions impacting the intracranial pressure, and our Visualase MRI-guided laser ablation is used in cranial procedures. Our Mazor X robotic guidance systems are used in robot-assisted spine procedures and combine the best-in-class robotics and navigation capability.

Specialty Therapies

Our Specialty Therapies division develops, manufactures, and markets products and therapies to treat diseases of the ear, nose and throat (ENT), help control the systems of overactive bladder, (non-obstructive) urinary retention, and chronic fecal incontinence. Additionally, our Specialty Therapies division includes products in the emerging field of transformative solutions surgical incision technology, as well as the haemostatic sealing of soft tissue and bone. Principal products and services offered include:

• Pelvic health and gastric therapies products, including InterStim, a neurostimulator, to help control the systems of overactive bladder, (non-obstructive) urinary retention, and chronic fecal incontinence. Our NURO System delivers Percutaneous Tibial Neuromodulation therapy to treat overactive bladder and associated symptoms of urinary urgency, urinary frequency, and urge incontinence. Our Enterra gastric neurostimulator is approved as a humanitarian device and is used for the treatment of chronic, intractable nausea and vomiting due to gastroparesis.

• ENT products, including the Straightshot M5 Microdebrider Handpiece, the IPC system, NIM Nerve Monitoring Systems, ENT Navigation System, as well as products for hearing restoration and obstructive sleep apnea.

• Transformative solutions products, including our PEAK Surgery System and Aquamantys System. Our PEAK Surgery System is a tissue dissection system that consists of the PEAK PlasmaBlade and PULSAR Generator and is cleared for use in a variety of settings, including plastic reconstructive surgery, general surgery, and certain conditions of ENT. Our Aquamantys System uses patented transcollation technology to provide haemostatic sealing of soft tissue and bone and is cleared for use in a variety of surgical procedures, including orthopedic surgery, spine, solid organ resection and thoracic procedures.

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Pain Therapies

Our Pain Therapies division develops, manufactures, and markets spinal cord stimulation systems, implantable drug infusion systems for chronic pain, as well as interventional products. Principal products and services offered include:

• Spinal cord stimulation products, including rechargeable and non-rechargeable devices and a large selection of leads used to treat chronic back and/or limb pain. This includes the Intellis Spinal Cord Stimulation System, with AdaptiveStim and SureScan MRI Technology, the Evolve workflow algorithm, and Snapshot reporting. Products also include our RestoreSensor (rechargeable) SureScan MRI, with its proprietary AdaptiveStim technology.

• Implantable drug infusion systems, including our SynchroMed II Implantable Infusion System, that deliver small quantities of drug directly into the intrathecal space surrounding the spinal cord.

• Interventional products, including the Xpander II Balloon Kyphoplasty system, the Kyphon-V vertebroplasty system and the OsteoCool RF Tumor ablation system.

• The Accurian nerve ablation system, which conducts radio frequency ablation of nerve tissues.

DIABETES GROUP

The Diabetes Group develops, manufactures, and markets products and services for the management of Type 1 and Type 2 diabetes. The primary medical specialists who use and/or prescribe our Diabetes products are endocrinologists and primary care physicians. Principal products and services offered include:

• Insulin pumps, including the MiniMed 670G system, which is the world's first hybrid closed loop system. The system, powered by SmartGuard technology, mimics some of the functions of a healthy pancreas by providing two levels of automated insulin delivery to maximize Time in Range with reduced user input.

• Continuous glucose monitoring (CGM) systems, including the Guardian Connect smart CGM system and the iPro2 professional CGM, are products worn by patients capturing glucose data to reveal patterns and potential problems, such as hyperglycemic and hypoglycemic episodes.

• Therapy management software, including CareLink software for patients and for healthcare professionals, with advanced web technology to help patients and their health care providers control their diabetes and improve engagement.

OTHER FACTORS IMPACTING OUR OPERATIONS

Research and Development

The markets in which we participate are subject to rapid technological advances. Constant improvement of existing products and introduction of new products are necessary to maintain market leadership. Our research and development (R&D) efforts are directed toward maintaining or achieving technological leadership in each of the markets we serve in order to help ensure that patients using our devices and therapies receive the most advanced and effective treatment possible. We remain committed to developing technological enhancements and new indications for existing products, and less invasive and new technologies for new and emerging markets to address unmet patient needs. That commitment leads to our initiation and participation in many clinical trials each fiscal year as the demand for clinical and economic evidence remains high. Furthermore, our development activities are intended to help reduce patient care costs and the length of hospital stays in the future. We have not engaged in significant customer or government-sponsored research.

Our R&D activities include improving existing products and therapies, expanding their indications and applications for use, and developing new therapies and procedures. We continue to focus on optimizing innovation, improving our R&D productivity, driving growth in emerging markets, clinical evidence generation, and assessing our R&D programs based on their ability to deliver economic value to our customers.

Intellectual Property

We rely on a combination of patents, trademarks, tradenames, copyrights, trade secrets, and non-disclosure and non-competition agreements to establish and protect our proprietary technology. In addition, we have entered into exclusive and non-exclusive licenses relating to a wide array of third-party technologies. In the aggregate, these intellectual property assets and licenses are of

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material importance to our business; however, we believe that no single patent, technology, trademark, intellectual property asset or license is material in relation to any segment of our business or to our business as a whole.

We operate in an industry characterized by extensive patent litigation. Patent litigation may result in significant damage awards and injunctions that could prevent the manufacture and sale of affected products or result in significant royalty payments in order to continue selling the products. At any given time, we are involved as both a plaintiff and a defendant in a number of patent infringement actions, the outcomes of which may not be known for prolonged periods of time. For additional information, see Note 19 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.

Sales and Distribution

We sell most of our medical devices and therapies through direct sales representatives in the U.S. and a combination of direct sales representatives and independent distributors in markets outside the U.S. For certain portions of our business, we also sell through distributors in the U.S. Our medical supplies products are used primarily in hospitals, surgi-centers and alternate care facilities, such as home care and long-term care facilities, and are marketed to materials managers, GPOs and integrated delivery networks (IDNs) primarily through third-party distributors, although we also have direct sales representatives. We often negotiate with GPOs and IDNs, which enter into supply contracts for the benefit of their member facilities. Our four largest markets are the U.S., Western Europe, Japan, and China. Emerging markets are an area of increasing focus and opportunity, as we believe they remain under-penetrated.

Our marketing and sales strategy is focused on rapid, cost-effective delivery of high-quality products to a diverse group of customers worldwide. To achieve this objective, we organize our marketing and sales teams around physician specialties. This focus enables us to develop highly knowledgeable and dedicated sales representatives who are able to foster strong relationships with physicians and other customers and enhance our ability to cross-sell complementary products.

We are not dependent on any single customer for more than 10 percent of our total net sales.

Competition, Industry and Cost Containment

We compete in both the therapeutic and diagnostic medical markets in more than 150 countries throughout the world. These markets are characterized by rapid change resulting from technological advances and scientific discoveries. Our product lines face a mix of competitors ranging from large manufacturers with multiple business lines to small manufacturers offering a limited selection of products. In addition, we face competition from providers of other medical therapies, such as pharmaceutical companies.

Major shifts in industry market share have occurred in connection with product problems, physician advisories, safety alerts, and publications about our products, reflecting the importance of product quality, product efficacy and quality systems in the medical device industry. In the current environment of managed care, economically motivated customers, consolidation among health care providers, increased competition, and declining reimbursement rates, we have been increasingly required to compete on the basis of price. In order to continue to compete effectively, we must continue to create or acquire advanced technology, incorporate this technology into proprietary products, obtain regulatory approvals in a timely manner, maintain high-quality manufacturing processes, and successfully market these products.

Government and private sector initiatives to limit the growth of health care costs, including price regulation, competitive pricing, bidding and tender mechanics, coverage and payment policies, comparative effectiveness of therapies, technology assessments and managed-care arrangements are continuing in many countries where we do business, including the U.S. These changes put increased emphasis on the delivery of more cost-effective medical devices and therapies. Government programs, including Medicare and Medicaid, private health care insurance and managed-care plans have attempted to control costs by limiting the amount of reimbursement they will pay for particular procedures or treatments, tying reimbursement to outcomes, shifting to population health management, and other mechanisms. Hospitals, which purchase implants, are also seeking to reduce costs through a variety of mechanisms, including, for example, centralized purchasing, and in some cases, limiting the number of vendors that may participate in the purchasing program. Hospitals are also aligning interests with physicians through employment and other arrangements, such as gainsharing, where a hospital agrees with physicians to share any realized cost savings resulting from changes in practice patterns such as device standardization. This has created an increasing level of price sensitivity among customers for our products.

Worldwide Operations

Our global operations are accompanied by certain financial and other risks. Relationships with customers and effective terms of sale vary by country. Exchange rate fluctuations may affect revenues, earnings, and cash flows from operations. We use operational and economic hedges, as well as derivative contracts, to manage the impact of currency exchange rate changes on earnings and

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cash flow. See “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” and Note 8 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.

Net sales and property, plant, and equipment attributable to significant geographic areas are presented in Note 21 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.

Production and Availability of Raw Materials

We manufacture products at manufacturing facilities located in various countries throughout the world. We purchase many of the components and raw materials used in manufacturing our products from numerous suppliers in various countries. Certain components and raw materials are available only from a sole supplier. We work closely with our suppliers to help ensure continuity of supply while maintaining high quality and reliability. Generally, we have been able to obtain adequate supplies of such raw materials and components. However, due to the U.S. FDA’s manufacturing requirements, we may not be able to quickly establish additional or replacement sources for certain components or materials if we experience a sudden or unexpected reduction or interruption in supply and are unable to develop alternative sources.

For additional information related to our manufacturing facilities refer to “Item 2. Properties” in this Annual Report on Form 10-K.

Quality Management and Product Liability

Our business success depends on the quality of our products, and we have global processes, procedures and programs, including our “Quality Begins with Me” program, that are intended to help us maintain the highest possible level of quality in all products. We operate in an industry susceptible to significant product liability claims. These claims may be brought by individuals seeking relief on their own behalf or purporting to represent a class.

Working Capital

Our goal is to carry sufficient levels of inventory to meet the product delivery needs of our customers. We also provide payment terms to customers in the normal course of business and rights to return product under warranty to meet the operational demands of our customers.

Employees

On April 26, 2019, we employed more than 90,000 full-time employees. Our employees are vital to our success. We believe we have been successful in attracting and retaining qualified personnel in a highly competitive labor market due to our competitive compensation and benefits and our rewarding work environment.

Seasonality

Worldwide sales do not reflect a significant degree of seasonality. However, the number of medical procedures incorporating Medtronic products is generally lower during summer months in the northern hemisphere due to summer vacation schedules, particularly in European countries.

Government Regulation

Our operations and products are subject to extensive regulation by numerous government agencies, including the U.S. FDA, European regulatory authorities such as the Medicines and Healthcare Products Regulatory Agency in the United Kingdom (U.K.) and the Federal Institute for Drugs and Medical Devices in Germany, the China Food and Drug Administration (CFDA), and other government agencies inside and outside the U.S. To varying degrees, each of these agencies requires us to comply with laws and regulations governing the development, testing, manufacturing, labeling, marketing, distribution and post-marketing surveillance of our products. Our business is also affected by patient privacy laws and government payer cost containment initiatives, as well as environmental health and safety laws and regulations.

Product Approval and Monitoring

Many countries where we sell medical devices subject such medical devices and technologies to their own approval and other regulatory requirements regarding performance, safety, and quality of our products. Authorization to commercially distribute a new medical device in the U.S. is generally obtained in one of two ways. The first, known as pre-market notification or the 510(k) process, requires us to demonstrate that our new medical device is substantially equivalent to a legally marketed medical device. The second, more rigorous process, known as pre-market approval, requires us to independently demonstrate that a medical device is safe and effective for its intended use. This process is generally much more time-consuming and expensive than the 510(k) process.

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In the European Union (E.U.), a single regulatory approval process exists, and conformity with the legal requirements is represented by the CE Mark. To obtain a CE Mark, defined products must meet minimum standards of performance, safety, and quality (i.e., the essential requirements), and then, according to their classification, comply with one or more of a selection of conformity assessment routes. The competent authorities of the E.U. countries separately regulate the clinical research for medical devices and the market surveillance of products once they are placed on the market. A new Medical Device Regulation was published by the E.U. in 2017 which will impose significant additional premarket and postmarket requirements. The regulation has a three-year implementation period to May 2020. After that time, medical devices marketed in the E.U. will require certification according to these new requirements, except that devices with valid CE certificates, issued pursuant to the Medical Device Directives before May 2020, can be placed on the market until May 2024.

The global regulatory environment is increasingly stringent and unpredictable. Several countries that did not have regulatory requirements for medical devices have established such requirements in recent years, and other countries have expanded, or plan to expand, their existing regulations. While harmonization of global regulations has been pursued, requirements continue to differ significantly among countries. We expect this global regulatory environment will continue to evolve, which could impact the cost, the time needed to approve, and ultimately, our ability to maintain existing approvals or obtain future approvals for our products. Regulations of the U.S. FDA and other regulatory agencies in and outside the U.S. impose extensive compliance and monitoring obligations on our business. These agencies review our design and manufacturing practices, labeling, record keeping, and manufacturers’ required reports of adverse experiences and other information to identify potential problems with marketed medical devices. We are also subject to periodic inspections for compliance with applicable quality system regulations, which govern the methods used in, and the facilities and controls used for, the design, manufacture, packaging, and servicing of finished medical devices intended for human use. In addition, the U.S. FDA and other regulatory bodies, both in and outside the U.S. (including the Federal Trade Commission, the Office of the Inspector General of the Department of Health and Human Services, the U.S. Department of Justice, and various state Attorneys General), monitor the promotion and advertising of our products. Any adverse regulatory action, depending on its magnitude, may limit our ability to effectively market and sell our products, limit our ability to obtain future premarket approvals or result in a substantial modification to our business practices and operations. For additional information, see "Item 1A. Risk Factors" We are subject to costly and complex laws and governmental regulations and any adverse regulatory action may materially adversely affect our financial condition and business operations.

In April 2015, we entered into a consent decree with the U.S. FDA relating to our Pain Therapies division's SynchroMed drug infusion system and the Neuromodulation quality system. The consent decree requires us to complete certain corrections and enhancements to the SynchroMed pump and the Neuromodulation quality system. The consent decree’s limitations on our ability to manufacture and distribute the SynchroMed drug infusion system were lifted by the U.S. FDA in September 2017. Following the successful completion of the required third-party expert audits, and in coordination with the FDA, the consent decree will be vacated. The Company must undergo third-party audits and submit audit reports to the U.S. FDA through 2020.

In June 2016, TYRX received a Warning Letter from the U.S. FDA following an inspection at the TYRX facility in Monmouth Junction, New Jersey. The U.S. FDA completed its follow up inspection to the Warning Letter in March 2018 and issued a Form-483 with observations, although the U.S. FDA noted in its closing meeting that there had been significant improvements made since the prior inspection. We have completed the commitments under the Form-483 and have been communicating to the U.S. FDA on the progress. The next step will be to signal readiness for inspection, which will occur at the Medtronic Rice Creek facility in Minneapolis, now that the manufacturing operations at Monmouth Junction have ceased. In June 2014, HeartWare Inc. received a Warning Letter from the U.S. FDA following an inspection at the HeartWare facility in Miami Lakes, Florida. Medtronic acquired HeartWare in August 2016, and implemented corrective actions and process improvements to address the items in the Warning Letter. In July 2018, HeartWare received a Form-483 after a U.S. FDA inspection and is implementing additional corrective actions, primarily related to the Pioneer 2.0 Controller, in response to the observations. We have been communicating monthly with the U.S. FDA on the progress of the actions. In August 2018, we received two FDA Warning Letters, one issued to the CRHF facility in Mounds View, MN, and the other issued to the Juncos facility in Puerto Rico. The letters were limited to the Blackwell ICD and focused on the manufacturing and design processes for Blackwell. Medtronic has been working with the U.S. FDA on resolving the open items and continues to make steady progress on implementing corrective actions. After the actions are complete, the U.S. FDA will perform a reinspection in order to lift the Warning Letters.

Trade Regulations

The movement of products, services, and investment across borders subject us to extensive trade regulations. A variety of laws and regulations in the countries in which we transact business apply to the sale, shipment and provision of goods, services and technology across borders. These laws and regulations govern, among other things, our import, export and other business activities. We are also subject to the risk that these laws and regulations could change in a way that would expose us to additional costs, penalties or liabilities. Some governments also impose economic sanctions against certain countries, persons or entities. In addition to our need to comply with such regulations in connection with our direct activities, we also sell and provide goods, technology and services to agents, representatives and distributors who may export such items to customers and end-users. If we, or the third

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parties through which we do business, are not in compliance with applicable import, export control or economic sanctions laws and regulations, we may be subject to civil or criminal enforcement action, and varying degrees of liability. Such actions may disrupt or delay sales of our products or services or result in restrictions on our distribution and sales of products or services that may materially impact our business.

Anti-Boycott Laws

Under U.S. laws and regulations, U.S. companies and their subsidiaries and affiliates outside the U.S. are prohibited from participating or agreeing to participate in unsanctioned foreign boycotts in connection with certain business activities, including the sale, purchase, transfer, shipping or financing of goods or services within the U.S. or between the U.S. and countries outside of the U.S. If we, or certain third parties through which we sell or provide goods or services, violate anti-boycott laws and regulations, we may be subject to civil or criminal enforcement action and varying degrees of liability.

Data Privacy and Security Laws and Regulations

As a business with a significant global footprint, compliance with evolving regulations and standards in data privacy and cybersecurity has resulted, and may continue to result, in increased costs, new compliance challenges, and the threat of increased regulatory enforcement activity. Our business relies on the secure electronic transmission, storage and hosting of sensitive information, including personal information, protected health information, financial information, intellectual property and other sensitive information related to our customers and workforce.

For example, in the U.S., the collection, maintenance, protection, use, transmission, disclosure and disposal of certain personal information and the security of medical devices are regulated at the U.S. federal and state, international and industry levels. U.S. federal and state laws protect the confidentiality of certain patient health information, including patient medical records, and restrict the use and disclosure of patient health information by health care providers. Privacy and Security Rules under the Health Insurance Portability and Accountability Act of 1996 (HIPAA), as amended, and the Health Information Technology for Economic and Clinical Health Act of 2009 (HITECH), govern the use, disclosure, and security of protected health information by “Covered Entities,” (which are health care providers that submit electronic claims, health plans, and health care clearinghouses) and by their “Business Associates” (which is anyone that performs a service on behalf of a Covered Entity involving the use or disclosure of protected health information and is not a member of the Covered Entity’s workforce). Rules under HIPAA and HITECH include specific security standards and breach notification requirements. The U.S. Department of Health and Human Services (HHS) (through the Office of Civil Rights) has direct enforcement authority against Covered Entities and Business Associates with regard to both the Security and Privacy Rules, including civil and criminal liability. With the exception of certain of its operations in its Diabetes and care management services businesses, Medtronic is generally not a Covered Entity. Medtronic also operates as a Business Associate to Covered Entities in a limited number of instances. There are comparable state laws governing the use and protection of personal health information by health care providers, and Medtronic may be subject to these laws in certain of its businesses.

In addition to the regulation of personal health information, a number of states have also adopted laws and regulations that may affect our privacy and data security practices for other kinds of personally identifiable information, such as state laws that govern the use, disclosure and protection of sensitive personal information, such as social security numbers, or that are designed to protect credit card account data. State consumer protection laws may also establish privacy and security standards for use and management of personally identifiable information, including information related to consumers and care providers.

Outside the U.S., we are impacted by the privacy and data security requirements at the international, national and regional level, and on an industry specific basis. We serve customers in more than 150 countries. Legal requirements in these countries relating to the collection, storage, handling and transfer of personal data and potentially intellectual property continue to evolve with increasingly strict enforcement regimes. More privacy and security laws and regulations are being adopted, and more are being enforced, with potential for significant financial penalties. In the E.U., stringent data protection and privacy rules which substantially impact the use of patient data across the healthcare industry became effective in May 2018. The E.U. General Data Protection Regulation (GDPR) applies uniformly across the E.U. and includes, among other things, a requirement for prompt notice of data breaches to data subjects and supervisory authorities in certain circumstances and significant fines for non-compliance. The GDPR also requires companies processing personal data of individuals residing in the E.U. to comply with E.U. privacy and data protection rules.

Because the laws and regulations continue to expand, differ from jurisdiction to jurisdiction, and are subject to evolving (and at times inconsistent) governmental interpretation, compliance with these laws and regulations may require significant additional cost expenditures or changes in products or business that increase competition or reduce revenue. Noncompliance could result in the imposition of fines, penalties, or orders to stop noncompliant activities.

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Regulations Governing Reimbursement

The delivery of our devices is subject to regulation by HHS and comparable state and non-U.S. agencies responsible for reimbursement and regulation of health care items and services. U.S. laws and regulations are imposed primarily in connection with federally-funded health care programs, such as the Medicare and Medicaid programs, as well as the government’s interest in regulating the quality and cost of health care. Other governments also impose regulations in connection with their health care reimbursement programs and the delivery of health care items and services.

U.S. federal health care laws apply when we or customers submit claims for items or services that are reimbursed under federally-funded health care programs, including laws related to kickbacks, false claims, self-referrals and health care fraud. There are often similar state false claims, anti-kickback, and anti-self-referral and insurance laws that apply to state-funded Medicaid and other health care programs and private third-party payers. In some circumstances, insurance companies attempt to bring a private cause of action against a manufacturer for a pattern of causing false claims. In addition, as a manufacturer of U.S. FDA-approved devices reimbursable by federal healthcare programs, we are subject to the Physician Payments Sunshine Act, which requires us to annually report certain payments and other transfers of value we make to U.S.-licensed physicians or U.S. teaching hospitals. Any failure to comply with these laws and regulations could subject us or our officers and employees to criminal and civil financial penalties.

Implementation of further legislative or administrative reforms to reimbursement systems, or adverse decisions relating to our products by administrators of these systems in coverage or reimbursement, could significantly reduce reimbursement or result in the denial of coverage, which could have an impact on the acceptance of and demand for our products and the prices that our customers are willing to pay for them. Further, as a result of the Patient Protection and Affordable Care Act (the “ACA”), the U.S. is implementing value-based payment methodologies and seeking to create alternate payment models, such as bundled payments, to continue to drive improved value.

Environmental Health and Safety Laws

We are also subject to various environmental health and safety laws and regulations both within and outside the U.S. Like other companies in our industry, our manufacturing and other operations involve the use and transportation of substances regulated under environmental health and safety laws including those related to the transportation of hazardous materials.

Available Information

We maintain a website at www.medtronic.com. Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (Exchange Act) are made available under the “About Medtronic - Investors” caption and “Financial Information - SEC Filings” subcaption of our website free of charge as soon as reasonably practicable after we electronically file them with, or furnish them to, the Securities and Exchange Commission (SEC).

Information relating to our corporate governance, including our Principles of Corporate Governance, Code of Conduct (including our Code of Ethics for Senior Financial Officers), Code of Business Conduct and Ethics for Members of the Board of Directors, and information concerning our executive officers, directors and Board committees (including committee charters) is available through our website at www.medtronic.com under the “About Medtronic - Corporate Governance” caption. Information relating to transactions in Medtronic securities by directors and officers is available through our website at www.medtronic.com under the “About Medtronic - Investors” caption and the “Financial Information - SEC Filings” subcaption.

The information listed above may also be obtained upon request from the Medtronic Investor Relations Department, 710 Medtronic Parkway, Minneapolis, MN 55432 USA.

Our website and the information contained on or connected to our website are not incorporated by reference into this Form 10-K.

The SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers, including the Company, that file electronically with the SEC. The public may obtain any documents that we file with the SEC at http://www.sec.gov. We file annual reports, quarterly reports, proxy statements, and other documents with the SEC under the Exchange Act.

Item 1A. Risk Factors

Investing in our securities involves a variety of risks and uncertainties, known and unknown, including, among others, those discussed below. Each of the following risks should be carefully considered, together with all the other information included in this Annual Report on Form 10-K, including our consolidated financial statements and the related notes and in our other filings with the SEC. Furthermore, additional risks and uncertainty not presently known to us or that we currently believe to be immaterial may also adversely affect our business. Our business, financial condition, operating results, cash flow and prospects could be materially and adversely affected by any of these risks or uncertainties.

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Risks Relating to the Company

We operate in a highly competitive industry and we may be unable to compete effectively.

We compete in both the therapeutic and diagnostic medical markets in more than 150 countries throughout the world. These markets are characterized by rapid change resulting from technological advances and scientific discoveries. In the product lines in which we compete, we face a range of competitors from large companies with multiple business lines to small, specialized manufacturers that offer a limited selection of niche products. Development by other companies of new or improved products, processes, technologies, or the introduction of reprocessed products or generic versions when our proprietary products lose their patent protection may make our existing or planned products less competitive. In addition, we face competition from providers of alternative medical therapies, such as pharmaceutical companies.

We believe our ability to compete depends upon many factors both within and beyond our control, including:

• product performance and reliability,

• product technology and innovation,

• product quality and safety,

• breadth of product lines,

• product support services,

• customer support,

• cost-effectiveness and price,

• reimbursement approval from health care insurance providers, and

• changes to the regulatory environment.

Competition may increase as additional companies enter our markets or modify their existing products to compete directly with ours. In addition, academic institutions, governmental agencies and other public and private research organizations also may conduct research, seek patent protection and establish collaborative arrangements for discovery, research, clinical development and marketing of products similar to ours. These companies and institutions compete with us in recruiting and retaining qualified scientific and management personnel, as well as in acquiring necessary product technologies. From time to time we have lost, and may in the future lose, market share in connection with product problems, physician advisories, safety alerts and publications about our products, which highlights the importance of product quality, product efficacy and quality systems to our business. In the current environment of managed care, consolidation among health care providers, increased competition, and declining reimbursement rates, we have been increasingly required to compete on the basis of price. Further, our continued growth and success depend on our ability to develop, acquire and market new and differentiated products, technologies and intellectual property, and as a result we also face competition for marketing, distribution, and collaborative development agreements, establishing relationships with academic and research institutions and licenses to intellectual property. In order to continue to compete effectively, we must continue to create, invest in or acquire advanced technology, incorporate this technology into our proprietary products, obtain regulatory approvals in a timely manner, and manufacture and successfully market our products. Given these factors, we cannot guarantee that we will be able to compete effectively or continue our level of success.

Reduction or interruption in supply or other manufacturing difficulties may adversely affect our manufacturing operations and related product sales.

The manufacture of our products requires the timely delivery of a sufficient amount of quality components and materials and is highly exacting and complex, due in part to strict regulatory requirements. We manufacture the majority of our products and procure important third-party services, such as sterilization services, at numerous facilities worldwide. We purchase many of the components, raw materials and services needed to manufacture these products from numerous suppliers in various countries. We have generally been able to obtain adequate supplies of such raw materials, components and services. However, for reasons of quality assurance, cost effectiveness, or availability, certain components, raw materials and services needed to manufacture our products are obtained from a sole supplier. Although we work closely with our suppliers to try to ensure continuity of supply while maintaining high quality and reliability, the supply of these components, raw materials and services may be interrupted or insufficient. In addition, due to the stringent regulations and requirements of regulatory agencies, including the U.S. FDA, regarding the manufacture of our products, we may not be able to quickly establish additional or replacement sources. Furthermore, the prices of commodities and other materials used in our products, which are often volatile and outside of our control, could adversely impact our supply. We use resins, other petroleum-based materials and pulp as raw materials in some of our products, and the prices of oil and gas also significantly affect our costs for freight and utilities. A reduction or interruption in supply, and an inability to develop alternative sources for such supply, could adversely affect our ability to manufacture our products in a timely or cost-effective manner and could result in lost sales.

Other disruptions in the manufacturing process or product sales and fulfillment systems for any reason, including equipment malfunction, failure to follow specific protocols and procedures, supplier facility shut-downs, defective raw materials, natural

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disasters such as hurricanes, tornadoes or wildfires, and other environmental factors, could lead to launch delays, product shortage, unanticipated costs, lost revenues and damage to our reputation. For example, in the past we have experienced a global information technology systems interruption that affected our customer ordering, distribution, and manufacturing processes. Furthermore, any failure to identify and address manufacturing problems prior to the release of products to our customers could result in quality or safety issues.

In addition, several of our key products are manufactured or sterilized at a particular facility, with limited alternate facilities. If an event occurs that results in damage to or closure of one or more of such facilities, such as the damage caused by Hurricane Maria in Puerto Rico in September 2017, we may be unable to manufacture or sterilize the relevant products at the previous levels or at all. Because of the time required to approve and license a manufacturing or sterilization facility, a third-party may not be available on a timely basis to replace production capacity in the event manufacturing or sterilization capacity is lost.

We are subject to costly and complex laws and governmental regulations and any adverse regulatory action may materially adversely affect our financial condition and business operations.

Our medical devices and technologies, as well as our business activities, are subject to a complex set of regulations and rigorous enforcement, including by the U.S. FDA, U.S. Department of Justice, Health and Human Services-Office of the Inspector General, and numerous other federal, state, and non-U.S. governmental authorities. To varying degrees, each of these agencies requires us to comply with laws and regulations governing the development, testing, manufacturing, labeling, marketing and distribution of our products. As a part of the regulatory process of obtaining marketing clearance for new products and new indications for existing products, we conduct and participate in numerous clinical trials with a variety of study designs, patient populations, and trial endpoints. Unfavorable or inconsistent clinical data from existing or future clinical trials or the market’s or U.S. FDA’s perception of this clinical data, may adversely impact our ability to obtain product approvals, our position in, and share of, the markets in which we participate, and our business, financial condition, results of operations and cash flows. We cannot guarantee that we will be able to obtain or maintain marketing clearance for our new products or enhancements or modifications to existing products, and the failure to maintain approvals or obtain approval or clearance could have a material adverse effect on our business, results of operations, financial condition and cash flows. Even if we are able to obtain approval or clearance, it may:

• take a significant amount of time,

• require the expenditure of substantial resources,

• involve stringent clinical and pre-clinical testing, as well as increased post-market surveillance,

• involve modifications, repairs or replacements of our products, and

• limit the proposed uses of our products.

Both before and after a product is commercially released, we have ongoing responsibilities under the U.S. FDA and other applicable non-U.S. government agency regulations. For instance, many of our facilities and procedures and those of our suppliers are also subject to periodic inspections by the U.S. FDA to determine compliance with applicable regulations. The results of these inspections can include inspectional observations on the U.S. FDA’s Form-483, warning letters, or other forms of enforcement. If the U.S. FDA were to conclude that we are not in compliance with applicable laws or regulations, or that any of our medical products are ineffective or pose an unreasonable health risk, the U.S. FDA could ban such medical products, detain or seize adulterated or misbranded medical products, order a recall, repair, replacement, or refund of such products, refuse to grant pending pre-market approval applications or require certificates of non-U.S governments for exports, and/or require us to notify health professionals and others that the devices present unreasonable risks of substantial harm to the public health. The U.S. FDA and other non-U.S. government agencies may also assess civil or criminal penalties against us, our officers or employees and impose operating restrictions on a company-wide basis. The U.S. FDA may also recommend prosecution to the U.S. Department of Justice. Any adverse regulatory action, depending on its magnitude, may restrict us from effectively marketing and selling our products and limit our ability to obtain future pre-market clearances or approvals, and could result in a substantial modification to our business practices and operations. Furthermore, we occasionally receive subpoenas or other requests for information from state and federal governmental agencies, and while these investigations typically relate primarily to financial arrangements with health care providers, regulatory compliance and product promotional practices, we cannot predict the timing, outcome or impact of any such investigations. Any adverse outcome in one or more of these investigations could include the commencement of civil and/or criminal proceedings, substantial fines, penalties, and/or administrative remedies, including exclusion from government reimbursement programs and/or entry into Corporate Integrity Agreements (CIAs) with governmental agencies. In addition, resolution of any of these matters could involve the imposition of additional, costly compliance obligations. These potential consequences, as well as any adverse outcome from government investigations, could have a material adverse effect on our business, results of operations, financial condition, and cash flows.

In addition, the U.S. FDA has taken the position that device manufacturers are prohibited from promoting their products other than for the uses and indications set forth in the approved product labeling, and any failure to comply could subject us to significant civil or criminal exposure, administrative obligations and costs, and/or other potential penalties from, and/or agreements with, the federal government.

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Governmental regulations outside the U.S. have, and may continue to, become increasingly stringent and common. In the European Union, for example, a new Medical Device Regulation was published in 2017 which, when it enters into full force in 2020, will include significant additional premarket and post-market requirements. Penalties for regulatory non-compliance could be severe, including fines and revocation or suspension of a company’s business license, mandatory price reductions and criminal sanctions. Future laws and regulations may have a material adverse effect on us.

Our failure to comply with laws and regulations relating to reimbursement of health care goods and services may subject us to penalties and adversely impact our reputation, business, results of operations, financial condition and cash flows.

Our devices, products and therapies are purchased principally by hospitals or physicians that typically bill various third-party payers, such as governmental health care programs (e.g., Medicare, Medicaid and comparable non-U.S. programs), private insurance plans and managed care plans, for the healthcare services provided to their patients. The ability of our customers to obtain appropriate reimbursement for products and services from third-party payers is critical because it affects which products customers purchase and the prices they are willing to pay. As a result, our devices, products and therapies are subject to regulation regarding quality and cost by HHS, including the Centers for Medicare & Medicaid Services (CMS), as well as comparable state and non-U.S. agencies responsible for reimbursement and regulation of health care goods and services, including laws and regulations related to kickbacks, false claims, self-referrals and health care fraud. Many states have similar laws that apply to reimbursement by state Medicaid and other funded programs as well as in some cases to all payers. In certain circumstances, insurance companies attempt to bring a private cause of action against a manufacturer for causing false claims. In addition, as a manufacturer of U.S. FDA-approved devices reimbursable by federal healthcare programs, we are subject to the Physician Payments Sunshine Act, which requires us to annually report certain payments and other transfers of value we make to U.S.-licensed physicians or U.S. teaching hospitals. Any failure to comply with these laws and regulations could subject us or our officers and employees to criminal and civil financial penalties.

We are also subject to risks relating to changes in government and private medical reimbursement programs and policies, and changes in legal regulatory requirements in the U.S. and around the world. Implementation of further legislative or administrative reforms to these reimbursement systems, or adverse decisions relating to coverage of or reimbursement for our products by administrators of these systems, could have an impact on the acceptance of and demand for our products and the prices that our customers are willing to pay for them.

We are substantially dependent on patent and other proprietary rights and failing to protect such rights or to be successful in litigation related to our rights or the rights of others may result in our payment of significant monetary damages and/or royalty payments, negatively impact our ability to sell current or future products, or prohibit us from enforcing our patent and other proprietary rights against others.

We are substantially dependent on patent and other proprietary rights and rely on a combination of patents, trade secrets, and non-disclosure and non-competition agreements to protect our proprietary intellectual property. We also operate in an industry characterized by extensive patent litigation. Patent litigation can result in significant damage awards and injunctions that could prevent our manufacture and sale of affected products or require us to pay significant royalties in order to continue to manufacture or sell affected products. At any given time, we are generally involved as both a plaintiff and a defendant in a number of patent infringement actions, the outcomes of which may not be known for prolonged periods of time. While it is not possible to predict the outcome of patent litigation, it is possible that the results of such litigation could require us to pay significant monetary damages and/or royalty payments, negatively impact our ability to sell current or future products, or prohibit us from enforcing our patent and proprietary rights against others, any of which could have a material adverse impact on our business, results of operations, financial condition, and cash flows.

While we intend to defend against any threats to our intellectual property, our patents, trade secrets or other agreements may not adequately protect our intellectual property. Further, pending patent applications may not result in patents being issued to us, patents issued to or licensed by us may be challenged or circumvented by competitors and such patents may be found invalid, unenforceable or insufficiently broad to protect our technology or provide us with any competitive advantage. Third parties could obtain patents that may require us to negotiate licenses to conduct our business, and these licenses may not be available on reasonable terms or at all. We also rely on non-disclosure and non-competition agreements with certain employees, consultants and other parties to protect, in part, trade secrets and other proprietary rights. We cannot be certain that these agreements will not be breached, that we will have adequate remedies for any breach, that others will not independently develop substantially equivalent proprietary information, or that third parties will not otherwise gain access to our trade secrets or proprietary knowledge.

In addition, the laws of certain countries in which we market some of our products do not protect our intellectual property rights to the same extent as the laws of the U.S., which could make it easier for competitors to capture market position in those countries. Competitors also may harm our sales by designing products that mirror the capabilities of our products or technology without infringing our intellectual property rights. If we are unable to protect our intellectual property in these countries, it could have a material adverse effect on our business, results of operations, financial condition, and cash flows.

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Quality problems and product liability claims could lead to recalls or safety alerts, reputational harm, adverse verdicts or costly settlements, and could have a material adverse effect on our business, results of operations, financial condition and cash flows.

Quality is extremely important to us and our customers due to the serious and costly consequences of product failure, and our business exposes us to potential product liability risks that are inherent in the design, manufacture, and marketing of medical devices. In addition, many of our products are often used in intensive care settings with seriously ill patients and some of the medical devices we manufacture and sell are designed to be implanted in the human body for long periods of time or indefinitely. Component failures, manufacturing nonconformances, design defects, off-label use, or inadequate disclosure of product-related risks or product-related information with respect to our products, if they were to occur, could result in an unsafe condition or injury to, or death of, a patient. These problems could lead to recall of, or issuance of a safety alert relating to, our products, and could result in product liability claims and lawsuits, including class actions, which could ultimately result, in certain cases, in the removal from the body of such products and claims regarding costs associated therewith. Due to the strong name recognition of the Medtronic and Covidien brands, a material adverse event involving one of our products could result in reduced market acceptance and demand for all products within that brand, and could harm our reputation and ability to market products in the future.

Strong product quality is critical to the success of our goods and services. If we fall short of these standards and our products are the subject of recalls or safety alerts, our reputation could be damaged, we could lose customers and our revenue and results of operations could decline. Our success also can depend on our ability to manufacture to exact specification precision-engineered components, subassemblies and finished devices from multiple materials. If our components fail to meet these standards or fail to adapt to evolving standards, our reputation, competitive advantage and market share could be harmed. In certain situations, we may undertake a voluntary recall of products or temporarily shut down production lines based on performance relative to our own internal safety and quality monitoring and testing data.

Any of the foregoing problems, including future product liability claims or recalls, regardless of their ultimate outcome, could harm our reputation and have a material adverse effect on our business, results of operations, financial condition and cash flows.

Our research and development efforts rely upon investments and investment collaborations, and we cannot guarantee that any previous or future investments or investment collaborations will be successful.

Our mission is to provide a broad range of therapies to restore patients to fuller, healthier lives, which requires a wide variety of technologies, products and capabilities. The rapid pace of technological development in the medical industry and the specialized expertise required in different areas of medicine make it difficult for one company alone to develop a broad portfolio of technological solutions. In addition to internally generated growth through our research and development efforts, historically we have relied, and expect to continue to rely, upon investments and investment collaborations to provide us access to new technologies both in areas served by our existing businesses as well as in new areas.

We expect to make future investments where we believe that we can stimulate the development or acquisition of new technologies and products to further our strategic objectives and strengthen our existing businesses. Investments and investment collaborations in and with medical technology companies are inherently risky, and we cannot guarantee that any of our previous or future investments or investment collaborations will be successful or will not materially adversely affect our business, results of operations, financial condition and cash flows.

Health care policy changes may have a material adverse effect on us.

In response to perceived increases in health care costs in recent years, there have been and continue to be proposals by the federal government, state governments, regulators and third-party payers to control these costs and, more generally, to reform the health care system, including U.S. health care reform legislation. Certain of these proposals could, among other things, limit the prices we are able to charge for our products or the amounts of reimbursement available for our products and could limit the acceptance and availability of our products. The adoption of some or all of these proposals could have a material adverse effect on our business, results of operations, financial condition and cash flows.

Our insurance program may not be adequate to cover future losses.

We have elected to self-insure most of our insurable risks across the Company, and we made this decision based on cost and availability factors in the insurance marketplace. We manage and maintain a portion of our self-insured program through a wholly-owned captive insurance company. We continue to maintain a directors and officers liability insurance policy with third-party insurers that provides coverage for the directors and officers of the Company. We continue to monitor the insurance marketplace to evaluate the value of obtaining insurance coverage for other categories of losses in the future. Although we believe, based on historical loss trends, that our self-insurance program accruals and our existing insurance coverage will be adequate to cover future losses, historical trends may not be indicative of future losses. The absence of third-party insurance coverage for other categories of losses increases our exposure to unanticipated claims and these losses could have a material adverse impact on our business, results of operations, financial condition and cash flows.

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If we experience decreasing prices for our goods and services and we are unable to reduce our expenses, there may be a material adverse effect on our business, results of operations, financial condition and cash flows.

We have experienced, and may continue to experience, decreasing prices for our goods and services due to pricing pressure from managed care organizations and other third-party payers on our customers, increased market power of our customers as the medical device industry consolidates and increased competition among medical engineering and manufacturing services providers. If the prices for our goods and services decrease and we are unable to reduce our expenses, our business, results of operations, financial condition and cash flows will be adversely affected.

We are subject to a variety of risks associated with global operations that could adversely affect our profitability and operating results.

We develop, manufacture, distribute and sell our products globally. Operations in countries outside of the U.S. are accompanied by certain risks. We intend to continue to expand our operations and to pursue growth opportunities outside the U.S., especially in emerging markets, which could expose us to additional and greater risks. Our profitability and global operations are, and will continue to be, subject to a number of risks and potential costs, including:

• fluctuations in currency exchange rates,

• healthcare reform legislation,

• the need to comply with different regulatory regimes worldwide that are subject to change and that could restrict our ability to manufacture and sell our products,

• local product preferences and product requirements,

• longer-term receivables than are typical in the U.S.,

• trade protection measures, tariffs and other border taxes, and import or export licensing requirements,

• less intellectual property protection in some countries outside the U.S. than exists in the U.S.,

• different labor regulations and workforce instability,

• political and economic instability,

• the expiration and non-renewal of foreign tax rulings and/or grants,

• potentially negative consequences from changes in or interpretations of tax laws, and

• economic instability and inflation, recession or interest rate fluctuations.

On June 23, 2016, the U.K. held a referendum in which voters approved an exit from the E.U., commonly referred to as “Brexit”.  As a result of the referendum, the British government began negotiations with the E.U. on the terms of the U.K.’s future relationship with the E.U. Brexit was due to take place on March 29, 2019, however, the inability to agree on the exact terms of the future relationship have delayed Brexit and led to continued uncertainty about Brexit’s potential impacts on the Company. It is possible that as a result of Brexit there will be greater restrictions on imports and exports between the U.K. and E.U. countries and increased regulatory complexities that could adversely impact the Company. Similarly, from time to time proposals are made in the U.S. to significantly change existing trade agreements and relationships between the U.S. and other countries, although we cannot currently predict whether or how these changes will be implemented over time. Changes to global trade policy, including between the U.S. and other countries such as China and Mexico, may adversely affect our business, results of operations, financial condition and cash flows.

In addition, a significant amount of our trade receivables are with national health care systems in many countries. Repayment of these receivables is dependent upon the political and financial stability of those countries. In light of these global economic fluctuations, we continue to monitor the creditworthiness of customers. Failure to receive payment of all or a significant portion of these receivables could adversely affect our business, results of operations, financial condition and cash flows.

Finally, changes in currency exchange rates may impact the reported value of our revenues, expenses, and cash flows. We cannot predict changes in currency exchange rates, the impact of exchange rate changes, nor the degree to which we will be able to manage the impact of currency exchange rate changes.

The failure to comply with anti-corruption laws could materially adversely affect our business and result in civil and/or criminal sanctions.

The U.S. Foreign Corrupt Practices Act (FCPA), the Irish Criminal Justice (Corruption Offences) Act 2018, and similar anti-corruption laws in other jurisdictions generally prohibit companies and their intermediaries from making improper payments to government officials for the purpose of obtaining or retaining business. Because of the predominance of government-administered healthcare systems in many jurisdictions around the world, many of our customer relationships outside of the U.S. are with governmental entities and are therefore potentially subject to such laws. We also participate in public-private partnerships and other commercial and policy arrangements with governments around the globe.

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Global enforcement of anti-corruption laws has increased in recent years, with more frequent voluntary self-disclosures by companies, aggressive investigations and enforcement proceedings by U.S. and non-U.S. governmental agencies, and assessment of significant fines and penalties against companies and individuals. Our international operations create the risk of unauthorized payments or offers of payments by one of our employees, consultants, sales agents, or distributors. It is our policy to implement safeguards to educate our employees and agents on these legal requirements and prohibit improper practices. However, existing safeguards and any future improvements may not always be effective, and our employees, consultants, sales agents or distributors may engage in conduct for which we could be held responsible. In addition, the government may seek to hold us liable for FCPA violations committed by companies in which we invest or that we acquire. Any alleged or actual violations of these regulations may subject us to government scrutiny, criminal or civil sanctions and other liabilities, including exclusion from government contracting, and could disrupt our business, adversely affect our reputation and result in a material adverse effect on our business, results of operations, financial condition and cash flows.

Laws and regulations governing international business operations could adversely impact our business.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), and the Bureau of Industry and Security at the U.S. Department of Commerce (BIS), administer certain laws and regulations that restrict U.S. persons and, in some instances, non-U.S. persons, in conducting activities, transacting business with or making investments in certain countries, governments, entities and individuals subject to U.S. economic sanctions. Our international operations subject us to these laws and regulations, which are complex, restrict our business dealings with certain countries and individuals, and are constantly changing. Further restrictions may be enacted, amended, enforced or interpreted in a manner that materially impacts our operations.

From time to time, certain of our subsidiaries have limited business dealings in countries subject to comprehensive sanctions, including Iran, Sudan, Syria, Cuba and the region of Crimea. Certain of our subsidiaries sell medical devices, and may provide related services, to distributors and other purchasing bodies in such countries. These business dealings represent an insignificant amount of our consolidated revenues and income, but expose us to a heightened risk of violating applicable sanctions regulations. Violations of these regulations are punishable by civil penalties, including fines, denial of export privileges, injunctions, asset seizures, debarment from government contracts and revocations or restrictions of licenses, as well as criminal fines and imprisonment. We have established policies and procedures designed to assist with our compliance with such laws and regulations. However, there can be no assurance that our policies and procedures will prevent us from violating these regulations in every transaction in which we may engage, and such a violation could adversely affect our reputation, business, financial condition, results of operations and cash flows.

Consolidation in the health care industry could have an adverse effect on our revenues and results of operations.

Many health care industry companies, including health care systems, distributors, manufacturers, providers, and insurers, are consolidating or have formed strategic alliances. As the health care industry consolidates, competition to provide goods and services to industry participants will become more intense. Further, this consolidation creates larger enterprises with greater negotiating power, which they can use to negotiate price concessions. If we must reduce our prices because of industry consolidation, or if we lose customers as a result of consolidation, our business, financial condition, results of operations and cash flows could be adversely affected.

Health care industry cost-containment measures could result in reduced sales of our medical devices and medical device components.

Most of our customers, and the health care providers to whom our customers supply medical devices, rely on third-party payers, including government programs and private health insurance plans, to reimburse some or all of the cost of the procedures in which medical devices that incorporate components we manufacture or assemble are used. The continuing efforts of governmental authorities, insurance companies and other payers of health care costs to contain or reduce these costs could lead to patients being unable to obtain approval for payment from these third-party payers. If third-party payer payment approval cannot be obtained by patients, sales of finished medical devices that include our components may decline significantly and our customers may reduce or eliminate purchases of our components. The cost-containment measures that health care providers are instituting, both in the U.S. and outside of the U.S., could harm our ability to operate profitably. For example, managed care organizations have successfully negotiated volume discounts for pharmaceuticals, and GPOs and IDNs have also concentrated purchasing decisions for some customers, which has led to downward pricing pressure for medical device companies, including us.

We are subject to environmental laws and regulations and the risk of environmental liabilities, violations and litigation.

We are subject to numerous U.S. federal, state, local and non-U.S. environmental, health and safety laws and regulations concerning, among other things, the health and safety of our employees, the generation, storage, use and transportation of hazardous materials, emissions or discharges of substances into the environment, investigation and remediation of hazardous substances or materials at various sites, chemical constituents in medical products and end-of-life disposal and take-back programs for medical devices. Our operations and those of certain third-party suppliers involve the use of substances subject to these laws and regulations,

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primarily those used in manufacturing and sterilization processes. If we or our suppliers violate these environmental laws and regulations, facilities could be shut down and violators could be fined, criminally charged or otherwise sanctioned. Furthermore, environmental laws outside of the U.S. are becoming more stringent, resulting in increased costs and compliance burdens.

In addition, certain environmental laws assess liability on current or previous owners or operators of real property for the costs of investigation, removal or remediation of hazardous substances or materials at their properties or at properties which they have disposed of hazardous substances. In addition to cleanup actions brought by governmental authorities, private parties could bring personal injury or other claims due to the presence of, or exposure to, hazardous substances. The ultimate cost of site cleanup and timing of future cash outflows is difficult to predict, given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods.

The costs of complying with current or future environmental protection and health and safety laws and regulations, or liabilities arising from past or future releases of, or exposures to, hazardous substances, may exceed our estimates, or have a material adverse effect on our business, results of operations, financial condition, and cash flows.

The continuing development of many of our products depends upon us maintaining strong relationships with health care professionals.

If we fail to maintain our working relationships with health care professionals, many of our products may not be developed and marketed in line with the needs and expectations of the professionals who use and support our products, which could cause a decline in our earnings and profitability. The research, development, marketing and sales of many of our new and improved products depends on our maintaining working relationships with health care professionals. We rely on these professionals to provide us with considerable knowledge and experience regarding the development, marketing and sale of our products. Physicians assist us as researchers, marketing and product consultants, inventors and public speakers. If we are unable to maintain strong relationships with these professionals, the development and marketing of our products could suffer, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.

We rely on the proper function, security and availability of our information technology systems and data to operate our business, and a breach, cyber-attack or other disruption to these systems or data could materially and adversely affect our business, results of operations, financial condition, cash flows, reputation or competitive position.

We are increasingly dependent on sophisticated information technology systems to operate our business, including to process, transmit and store sensitive data, and many of our products and services include integrated software and information technology that collects data regarding patients or connects to our systems. Like other large multi-national corporations, we could experience, and in the past have experienced, attempted or actual interference with the integrity of, and interruptions in, our technology systems, as well as data breaches, such as cyber-attacks, malicious intrusions, breakdowns, interference with the integrity of our products and data or other significant disruptions. Furthermore, we rely on third-party vendors to supply and/or support certain aspects of our information technology systems. These third-party systems could also become vulnerable to cyber-attack, malicious intrusions, breakdowns, interference or other significant disruptions, and may contain defects in design or manufacture or other problems that could result in system disruption or compromise the information security of our own systems. In addition, we continue to grow in part through new business acquisitions and, as a result, may face risks associated with defects and vulnerabilities in their systems, or difficulties or other breakdowns or disruptions in connection with the integration of the acquisitions into our information technology systems.

Our worldwide operations mean that we are subject to laws and regulations, including data protection and cybersecurity laws and regulations, in many jurisdictions. The variety of U.S. and international privacy and cybersecurity laws and regulations impacting our operations are described in “Item 1. Business" - Other Factors Impacting Our Operations - Data Privacy and Security Laws and Regulations. For example, GDPR requires us to manage personal data in the E.U. and may impose fines of up to four percent of our global revenue in the event of certain violations. Furthermore, there has been a developing trend of civil lawsuits and class actions relating to breaches of consumer data held by large companies or incidents arising from other cyber-attacks. Any data security breaches, cyber-attacks, malicious intrusions or significant disruptions could result in actions by regulatory bodies and/or civil litigation, any of which could materially and adversely affect our business, results of operations, financial condition, cash flows, reputation or competitive position.

In addition, our information technology systems require an ongoing commitment of significant resources to maintain, protect, and enhance existing systems and develop new systems to keep pace with continuing changes in information processing technology, evolving legal and regulatory standards, the increasing need to protect patient and customer information, changes in the techniques used to obtain unauthorized access to data and information systems, and the information technology needs associated with our changing products and services. There can be no assurance that our process of consolidating, protecting, upgrading and expanding our systems and capabilities, continuing to build security into the design of our products, and developing new systems to keep

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pace with continuing changes in information processing technology will be successful or that additional systems issues will not arise in the future.

If our information technology systems, products or services or sensitive data are compromised, patients or employees could be exposed to financial or medical identity theft or suffer a loss of product functionality, and we could lose existing customers, have difficulty attracting new customers, have difficulty preventing, detecting, and controlling fraud, be exposed to the loss or misuse of confidential information, have disputes with customers, physicians, and other health care professionals, suffer regulatory sanctions or penalties under federal laws, state laws, or the laws of other jurisdictions, experience increases in operating expenses or an impairment in our ability to conduct our operations, incur expenses or lose revenues as a result of a data privacy breach, product failure, information technology outages or disruptions, or suffer other adverse consequences including lawsuits or other legal action and damage to our reputation.

Our substantial leverage and debt service obligations could adversely affect our business.

At April 26, 2019, we had approximately $0.8 billion of current debt obligations and $24.5 billion of long-term debt outstanding. We may also incur additional indebtedness in the future. Our substantial indebtedness could have adverse consequences, including:

• making it more difficult for us to satisfy our financial obligations,

• increasing our vulnerability to adverse economic, regulatory and industry conditions, and placing us at a disadvantage compared to our competitors that are less leveraged,

• limiting our ability to compete and our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate,

• limiting our ability to borrow additional funds for working capital, capital expenditures, acquisitions and general corporate or other purposes, and

• exposing us to greater interest rate risk since the interest rate on borrowings under our floating rate notes and revolving credit facility is variable.

Our debt service obligations require us to use a portion of our operating cash flow to pay interest and principal on indebtedness instead of for other corporate purposes, including funding future expansion of our business, acquisitions, and ongoing capital expenditures, which could impede our growth. If our operating cash flow and capital resources are insufficient to service our debt obligations, we may be forced to sell assets, seek additional equity or debt financing or restructure our debt, which could harm our long-term business prospects. Our failure to comply with the terms of our revolving credit facility and other indebtedness could result in an event of default which, if not cured or waived, could result in the acceleration of all of our debt.

Failure to integrate acquired businesses into our operations successfully could adversely affect our business.

As part of our strategy to develop and identify new products and technologies, we have made several significant acquisitions in recent years, and may make additional acquisitions in the future. Our integration of the operations of acquired businesses requires significant efforts, including the coordination of information technologies, research and development, sales and marketing, operations, manufacturing, and finance. These efforts result in additional expenses and involve significant amounts of management’s time that cannot then be dedicated to other projects. Our failure to manage and coordinate the growth of acquired companies successfully could also have an adverse impact on our business. In addition, we cannot be certain that the businesses we acquire will become profitable or remain so. Factors that will affect the success of our acquisitions include:

• the presence or absence of adequate internal controls and/or significant fraud in the financial systems of acquired companies,

• our ability or inability to integrate information technology systems of acquired companies in a secure and reliable manner,

• adverse developments arising out of investigations by governmental entities of the business practices of acquired companies, including potential FCPA liability,

• any decrease in customer loyalty and product orders caused by dissatisfaction with the combined companies’ product lines and sales and marketing practices, including price increases,

• our ability to retain key employees, and

• the ability to achieve synergies among acquired companies, such as increasing sales of the integrated company’s products, achieving cost savings, and effectively combining technologies to develop new products.

We also could experience negative effects on our business, financial condition, results of operations and cash flows from acquisition-related charges, amortization of intangible assets and asset impairment charges. These effects, individually or in the aggregate, could cause a deterioration of our credit rating and result in increased borrowing costs and interest expense.

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Changes in tax laws or exposure to additional income tax liabilities could have a material impact on our business, results of operations, financial condition and cash flows.

We are subject to income taxes, as well as non-income based taxes, in the U.S., Ireland, and various other jurisdictions in which we operate. The tax laws in the U.S., Ireland and other countries in which we and our affiliates do business could change on a prospective or retroactive basis, and any such changes could materially adversely affect our business and our effective tax rate. For example, on December 22, 2017, the U.S. enacted comprehensive tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"), which resulted in a significant charge to tax expense during our fiscal year 2018 associated with the U.S. taxation of accumulated foreign earnings as well as the requirement to revalue U.S. deferred tax assets and liabilities resulting from the reduction in the U.S. corporate tax rate. The U.S. Treasury is expected to issue additional subsequent guidance and interpretation of the Tax Act. This guidance could have a material impact on our business, financial condition, results of operations, and cash flows. In addition, the government in Switzerland is currently considering tax reform legislation, the results of which could have a material impact on our business, financial condition, results of operations, and cash flows.

In 2013, the Organization for Economic Cooperation and Development (OECD) published an action plan called Base Erosion and Profit Shifting (BEPS) with a view to tackling perceived tax abuse and inconsistency between taxing authorities and their approach to International tax matters. The final BEPS Action report was published in October 2015 and subsequently many taxing authorities have adopted the guidelines provided within their local laws. The EU expanded upon these guidelines with Anti-Tax Avoidance Directives (ATAD 1 and 2) to be applied by all its member states by 2020. We continue to monitor any and all changes to local country legislation resulting from this guidance. One specific change is a requirement for increased disclosures of financial information on a local and global basis. This information could lead to disagreements between jurisdictions associated with the proper allocation of profits between such jurisdictions.

We are subject to ongoing tax audits in the various jurisdictions in which we operate. Tax authorities may disagree with certain positions we have taken and assess additional taxes. We regularly assess the likely outcomes of these audits in order to determine the appropriateness of our tax provision. However, there can be no assurance that we will accurately predict the outcomes of these audits, and the actual outcomes of these audits could have a material impact on our business, financial condition, results of operations, and cash flows.

We have recorded reserves for potential payments of tax to various tax authorities related to uncertain tax positions. However, the calculation of such tax liabilities involves the application of complex tax regulations in many jurisdictions. Therefore, any dispute with a tax authority may result in a payment that is significantly different from current estimates. If payment of these amounts ultimately proves to be less than the recorded amounts, the reversal of the liabilities generally would result in tax benefits being recognized in the period when we determine the liabilities are no longer necessary. If our estimate of tax liabilities proves to be less than the amount for which it is ultimately liable, we would incur additional charges, and such charges could have a material adverse effect on our business, financial condition, results of operations, and cash flows.

The Medtronic, Inc. tax court proceeding outcome could have a material adverse impact on our financial condition.

In March 2009, the IRS issued its audit report for Medtronic Inc. for fiscal years 2005 and 2006. Medtronic, Inc. reached agreements with the IRS on some, but not all matters related to these fiscal years. The remaining unresolved issue for fiscal years 2005 and 2006 relates to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico, which is one of our key manufacturing sites. An adverse outcome in this matter could materially and adversely affect our business, financial condition, results of operations and cash flows. See Note 19 to the consolidated financial statements in "Item 8. Financial Statements and Supplementary Data" in this Annual Report on Form 10-K.

Future potential changes to the U.S. tax laws could result in us being treated as a U.S. corporation for U.S. federal tax purposes, and the IRS may not agree with the conclusion that we should be treated as a foreign corporation for U.S federal income tax purposes.

Because Medtronic plc is organized under the laws of Ireland, we would generally be classified as a foreign corporation under the general rule that a corporation is considered tax resident in the jurisdiction of its organization or incorporation for U.S. federal income tax purposes. Even so, the IRS may assert that we should be treated as a U.S. corporation (and, therefore, a U.S. tax resident) for U.S. federal income tax purposes pursuant to Section 7874 of the U.S. Internal Revenue Code of 1986, as amended (the Code).

Under Section 7874 of the Code, if Medtronic Inc.’s shareholders immediately prior to the Covidien transaction held 80% or more of the vote or value of our shares by reason of holding stock in Medtronic, Inc. immediately after the transaction (the ownership test), and our expanded affiliated group after the transaction did not have substantial business activities in Ireland relative to its worldwide activities (the substantial business activities test), we would have been treated as a U.S. corporation for U.S. federal income tax purposes. Based on the rules for determining share ownership under Section 7874 of the Code, Medtronic, Inc.’s

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shareholders received approximately 70% of our ordinary shares (by both vote and value) by reason of holding stock in Medtronic, Inc. Therefore, under current law, Medtronic plc should not be treated as a U.S. corporation for U.S. federal income tax purposes. However, there is limited guidance regarding the application of Section 7874, including the application of the ownership test. If we were to be treated as a U.S. corporation for federal tax purposes, we could be subject to substantially greater U.S. tax liability than currently contemplated as a non-U.S. corporation.

Legislative or other governmental action relating to the denial of U.S. federal or state governmental contracts to U.S. companies that redomicile abroad could adversely affect our business.

Various U.S. federal and state legislative proposals that would deny governmental contracts to U.S. companies that move their corporate location abroad may affect us. We are unable to predict the likelihood that, or final form in which, any such proposed legislation might become law, the nature of the regulations that may be promulgated under any future legislative enactments, or the effect such enactments and increased regulatory scrutiny may have on our business.

Risks Relating to Our Jurisdiction of Incorporation

We are incorporated in Ireland, and Irish law differs from the laws in effect in the U.S. and may afford less protection to holders of our securities.

Our shareholders may have more difficulty protecting their interests than would shareholders of a corporation incorporated in a jurisdiction of the United States. It may not be possible to enforce court judgments obtained in the U.S. against us in Ireland based on the civil liability provisions of the U.S. federal or state securities laws. In addition, there is some uncertainty as to whether the courts of Ireland would recognize or enforce judgments of U.S. courts obtained against us or our directors or officers based on the civil liabilities provisions of the U.S. federal or state securities laws or hear actions against us or those persons based on those laws. We have been advised that the U.S. currently does not have a treaty with Ireland providing for the reciprocal recognition and enforcement of judgments in civil and commercial matters. Therefore, a final judgment for the payment of money rendered by any U.S. federal or state court based on civil liability, whether or not based solely on U.S. federal or state securities laws, would not automatically be enforceable in Ireland.

As an Irish company, we are governed by the Irish Companies Act 2014, which differs in some material respects from laws generally applicable to U.S. corporations and shareholders, including, among others, differences relating to interested director and officer transactions and shareholder lawsuits. Likewise, the duties of directors and officers of an Irish company generally are owed to the company only. Shareholders of Irish companies generally do not have a personal right of action against directors or officers of the company and may exercise such rights of action on behalf of the company only in limited circumstances. Accordingly, holders of our securities may have more difficulty protecting their interests than would holders of securities of a corporation incorporated in the U.S.

As an Irish public limited company, certain capital structure decisions require shareholder approval, which may limit Medtronic’s flexibility to manage its capital structure.

Under Irish law, our authorized share capital can be increased by an ordinary resolution of our shareholders and the directors may issue new ordinary or preferred shares up to a maximum amount equal to the authorized but unissued share capital, without shareholder approval, once authorized to do so by our articles of association or by an ordinary resolution of our shareholders. Additionally, subject to specified exceptions, Irish law grants statutory preemption rights to existing shareholders where shares are being issued for cash consideration but allows shareholders to disapply such statutory preemption rights either in our articles of association or by way of special resolution. Such disapplication can either be generally applicable or be in respect of a particular allotment of shares. Accordingly, our articles of association contain, as permitted by Irish company law, provisions authorizing the board to issue new shares, and to disapply statutory preemption rights. The authorization of the directors to issue shares and the disapplication of statutory preemption rights must both be renewed by the shareholders at least every five years, and our current authorizations are due to expire in January 2020. We anticipate seeking new authorizations at our 2019 Annual General Meeting and in subsequent years. We cannot provide any assurance that these authorizations will always be approved, which could limit our ability to issue equity and thereby adversely affect the holders of our securities.

A transfer of our shares, other than ones effected by means of the transfer of book-entry interests in the Depository Trust Company, may be subject to Irish stamp duty.

Transfers of our shares effected by means of the transfer of book entry interests in the Depository Trust Company (DTC) will not be subject to Irish stamp duty. However, if a shareholder holds our shares directly rather than beneficially through DTC, any transfer of shares could be subject to Irish stamp duty (currently at the rate of 1% of the higher of the price paid or the market value of the shares acquired). Payment of Irish stamp duty is generally a legal obligation of the transferee. The potential for stamp duty could adversely affect the price of shares.

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In certain limited circumstances, dividends we pay may be subject to Irish dividend withholding tax and dividends received by Irish residents and certain other shareholders may be subject to Irish income tax.

In certain limited circumstances, dividend withholding tax (currently at a rate of 20%) may arise in respect of dividends paid on our shares. A number of exemptions from dividend withholding tax exist such that shareholders resident in the U.S. and other specified countries that have a tax treaty with Ireland may be entitled to exemptions from dividend withholding tax.

Shareholders resident in the U.S. that hold their shares through DTC will not be subject to dividend withholding tax, provided the addresses of the beneficial owners of such shares in the records of the brokers holding such shares are recorded as being in the U.S. (and such brokers have further transmitted the relevant information to a qualifying intermediary appointed by us). However, other shareholders may be subject to dividend withholding tax, which could adversely affect the price of their shares.

Shareholders entitled to an exemption from Irish dividend withholding tax on dividends received from us will not be subject to Irish income tax in respect of those dividends unless they have some connection with Ireland other than their shareholding in our Company (for example, they are resident in Ireland). Shareholders who receive dividends subject to Irish dividend withholding tax generally have no further liability to Irish income tax on those dividends.

Our shares received by means of a gift or inheritance could be subject to Irish capital acquisitions tax.

Irish capital acquisitions tax (CAT) could apply to a gift or inheritance of our shares irrespective of the place of residence, ordinary residence or domicile of the parties. This is because our shares will be regarded as property situated in Ireland. The person who receives the gift or inheritance has primary liability for CAT. Gifts and inheritances passing between spouses are exempt from CAT. Children have a tax-free threshold which Irish Revenue typically updates annually in respect of taxable gifts or inheritances received from their parents.

Item 1B. Unresolved Staff Comments

None.

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Item 2. Properties

Medtronic's principal executive office is located in Dublin, Ireland and is leased by the Company, while its main operational offices are located in the Minneapolis, Minnesota metropolitan area and are owned by the Company.

The Company's total manufacturing and research space is approximately 9 million square feet. Approximately 43 percent of the manufacturing or research facilities are owned by Medtronic and the balance is leased. The following is a summary of the Company's largest manufacturing and research facilities by location:

Location Country or State	Square Feet (in thousands)
Connecticut	1,138
Minnesota	984
China	843
Puerto Rico	831
Mexico	762
Italy	454
Ireland	446
Texas	431
California	389
Colorado	336
Arizona	319
Dominican Republic	304
Switzerland	283
Massachusetts	255
Israel	204

Medtronic also maintains sales and administrative offices in the U.S. at 4 locations in 4 states and outside the U.S. at 161 locations in 66 countries. Most of these locations are leased. The Company is using substantially all of its currently available productive space to develop, manufacture, and market products. The Company's facilities are well-maintained, suitable for their respective uses, and adequate for current needs.

Item 3. Legal Proceedings

A discussion of the Company’s legal proceedings is contained in Note 19 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.

Item 4. Mine Safety Disclosures

Not applicable.

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PART II

Item 5. Market for Medtronic’s Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities

The Company’s ordinary shares are listed on the New York Stock Exchange under the symbol “MDT.”

The following table provides information about the shares repurchased by the Company during the fourth quarter of fiscal year 2019:

Fiscal Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as a Part of Publicly Announced Program	Maximum Approximate Dollar Value of Shares that may yet be Purchased Under the Program
1/26/2019-2/22/2019	—	$	—	—	$	1,323,491,730
2/23/2019-3/29/2019	1,581,836	91.67		1,581,836	7,178,491,789
3/30/2019-4/26/2019	—	—		—	7,178,491,789
Total	1,581,836	$	91.67	1,581,836	$	7,178,491,789

In June 2017, the Company's Board of Directors authorized the repurchase of $5.0 billion of the Company’s ordinary shares. This authorization replaced the previous June 2015 repurchase authorization to redeem up to an aggregate number of ordinary shares. In March 2019, the Company's Board of Directors authorized an incremental $6.0 billion for repurchase of the Company's ordinary shares. There is no specific time-period associated with these repurchase authorizations.

On June 18, 2019, there were approximately 25,797 shareholders of record of the Company’s ordinary shares. Ordinary cash dividends declared and paid totaled 50.0 cents per share for each quarter of fiscal year 2019 and 46.0 cents per share for each quarter of fiscal year 2018.

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Stock Performance Graph

The following graph compares the cumulative total shareholder return on Medtronic’s ordinary shares with the cumulative total shareholder return on the Standard & Poor’s (S&P) 500 Index and the S&P 500 Health Care Equipment Index for the last five fiscal years. The graph assumes that $100 was invested at market close on April 25, 2014 in Medtronic’s ordinary shares, the S&P 500 Index, and the S&P 500 Health Care Equipment Index and that all dividends were reinvested.

Company/Index	April 2014		April 2015		April 2016		April 2017		April 2018		April 2019
Medtronic, Inc./ Medtronic plc	$	100.00	$	135.72	$	141.29	$	151.50	$	151.59	$	166.52
S&P 500 Index	100.00		115.98		115.62		136.33		155.69		174.89
S&P 500 Health Care Equipment Index	100.00		131.70		139.55		163.50		196.77		230.93

For information on the Company's equity compensation plans, see "Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters" in this Annual Report on Form 10-K.

Irish Restrictions on Import and Export of Capital

Except as indicated below, there are no restrictions on non-residents of Ireland dealing in Irish domestic securities, which includes ordinary shares of Irish companies. Except as indicated below, dividends and redemption proceeds also continue to be freely transferable to non-resident holders of such securities. The Financial Transfers Act, 1992, provides that the Irish Minister for Finance can make provision for the restriction of financial transfers between Ireland and other countries. For the purposes of this Act, “financial transfers” include all transfers which would be movements of capital or payments within the meaning of the treaties governing the E.U. if they had been made between Member States of the E.U. This Act has been used by the Minister for Finance to implement European Council Directives, which provide for the restriction of financial transfers to certain countries, organizations and people including the Al-Qaeda network and the Taliban, Afghanistan, Belarus, Burma (Myanmar), Democratic People’s Republic of Korea, Democratic Republic of Congo, Egypt, Eritrea, Iran, Iraq, Ivory Coast, Lebanon, Liberia, Libya, Republic of Guinea, Somalia, Sudan, Syria, Tunisia, Ukraine and Zimbabwe.

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Any transfer of, or payment in respect of, a share or interest in a share involving the government of any country that is currently the subject of United Nations sanctions, any person or body controlled by any of the foregoing, or by any person acting on behalf of the foregoing, may be subject to restrictions pursuant to such sanctions as implemented into Irish law.

Irish Taxes Applicable to U.S. Holders

Dividends paid by Medtronic will generally be subject to Irish dividend withholding tax at the standard rate of income tax (currently 20 percent) unless an exemption applies.

Dividends paid to U.S. residents will not be subject to Irish dividend withholding tax provided that:

• in the case of a beneficial owner of Medtronic shares held in the Depository Trust Company (DTC), the address of the beneficial owner in the records of his or her broker is in the United States and this information is provided by the broker to the Company’s qualifying intermediary; or

• in the case of a record owner, the record owner has provided to the Company’s transfer agent a valid U.S. Certification of Residence (Form 6166) or valid Irish Non-Resident Form V2.

Irish income tax may also arise with respect to dividends paid on Medtronic’s ordinary shares. A U.S. resident who meets one of the exemptions from dividend withholding tax described above and who does not hold Medtronic shares through a branch or agency in Ireland through which a trade is carried on generally will not have any Irish income tax liability on a dividend paid by Medtronic. In addition, if a U.S. shareholder is subject to the dividend withholding tax, the withholding payment discharges any Irish income tax liability, provided the shareholder furnishes to the Irish Revenue authorities a statement of the dividend withholding tax imposed.

While the U.S./Ireland Double Tax Treaty contains provisions regarding withholding, due to the wide scope of the exemptions from dividend withholding tax available under Irish domestic law, it would generally be unnecessary for a U.S. resident shareholder to rely on the treaty provisions.

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Item 6. Selected Financial Data

Our fiscal year-end is the last Friday in April, and therefore, the total weeks in a fiscal year fluctuates between 52 and 53 weeks. Fiscal years 2019, 2018, 2017, and 2015 were 52-week years. Fiscal year 2016 was a 53-week year, with the additional week occurring in the first quarter. The table below illustrates operating results and other selected financial data for fiscal years 2015 to 2019. Certain reclassifications have been made to prior year selected financial data to conform to classifications used in the current year.

	Fiscal Year
(in millions, except per share data and additional information)	2019			2018			2017			2016			2015(1)
Operating Results:
Net sales	$	30,557		$	29,953		$	29,710		$	28,833		$	20,261
Cost of products sold	9,155			9,067			9,294			9,128			6,306
Research and development expense	2,330			2,256			2,193			2,211			1,638
Selling, general, and administrative expense	10,418			10,238			10,018			9,770			7,446
Amortization of intangible assets	1,764			1,823			1,980			1,931			733
Restructuring charges, net	198			30			303			290			237
Certain litigation charges	166			61			300			26			42
Gain on sale of businesses	—			(697		)	—			—			—
Other operating expense, net	258			535			239			93			182
Operating profit	6,268			6,640			5,383			5,384			3,677
Other non-operating income, net	(373		)	(181		)	(313		)	(338		)	(475		)
Interest expense	1,444			1,146			1,094			1,386			666
Income before income taxes	5,197			5,675			4,602			4,336			3,486
Income tax provision	547			2,580			578			798			811
Net income	4,650			3,095			4,024			3,538			2,675
Net (income) loss attributable to noncontrolling interests	(19		)	9			4			—			—
Net income attributable to Medtronic	$	4,631		$	3,104		$	4,028		$	3,538		$	2,675
Basic earnings per share	$	3.44		$	2.29		$	2.92		$	2.51		$	2.44
Diluted earnings per share	3.41			2.27			2.89			2.48			2.41
Cash dividends declared per ordinary share	2.00			1.84			1.72			1.52			1.22
Financial Position at Fiscal Year-end:
Total assets	89,694			91,393			99,857			99,685			106,726
Long-term debt	24,486			23,699			25,921			30,109			33,752
Shareholders’ equity	50,091			50,720			50,208			51,977			53,144
Additional Information:
Full-time employees at year-end	90,071			86,368			91,267			88,063			85,573
Full-time equivalent employees at year-end	101,013			98,003			102,688			98,017			92,500

(1) Covidien plc was acquired on January 26, 2015. As such, for the fiscal year ended April 24, 2015, the results of operations of Covidien are reflected in Medtronic’s results of operations for only the fourth quarter due to the timing of the acquisition, which affects comparability.

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis provides information management believes to be relevant to understanding the financial condition and results of operations of the Company. You should read this discussion and analysis along with our consolidated financial statements and related notes thereto at April 26, 2019 and April 27, 2018 and for each of the three fiscal years ended April 26, 2019 (fiscal year 2019), April 27, 2018 (fiscal year 2018), and April 28, 2017 (fiscal year 2017), which are presented within "Item 8. Financial Statements and Supplementary Data" in this Annual Report on Form 10-K.

Throughout this Management’s Discussion and Analysis, we present certain financial measures that we use to evaluate the operational performance of the Company and as a basis for strategic planning; however, such financial measures are not presented in our financial statements prepared in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). These financial measures are considered "non-GAAP financial measures" and are intended to supplement, and should not be considered as superior to, financial measures presented in accordance with U.S. GAAP. We generally use non-GAAP financial measures to facilitate management's review of the operational performance of the Company and as a basis for strategic planning. We believe that non-GAAP financial measures provide information useful to investors in understanding the Company's underlying operational performance and trends and may facilitate comparisons with the performance of other companies in the medical technologies industry.

As presented in the GAAP to Non-GAAP Reconciliations section below, our non-GAAP financial measures exclude the impact of certain charges or gains that contribute to or reduce earnings and that may affect financial trends, and include certain charges or benefits that result from transactions or events that we believe may or may not recur with similar materiality or impact to our operations in future periods (Non-GAAP Adjustments).

In the event there is a Non-GAAP Adjustment recognized in our operating results, the tax cost or benefit attributable to that item is separately calculated and reported. Because the effective rate can be significantly impacted by the Non-GAAP Adjustments that take place during the period, we often refer to our tax rate using both the effective rate and the non-GAAP nominal tax rate (Non-GAAP Nominal Tax Rate). The Non-GAAP Nominal Tax Rate is calculated as the income tax provision, adjusted for the impact of Non-GAAP Adjustments, as a percentage of income before income taxes, excluding Non-GAAP Adjustments.

Free cash flow is a non-GAAP financial measure calculated by subtracting property, plant, and equipment additions from operating cash flows.

Refer to the “GAAP to Non-GAAP Reconciliations," "Income Taxes," and "Free Cash Flow" sections for reconciliations of the non-GAAP financial measures to their most directly comparable financial measures prepared in accordance with U.S. GAAP.

EXECUTIVE LEVEL OVERVIEW

Medtronic is among the world's largest medical technology, services, and solutions companies - alleviating pain, restoring health, and extending life for millions of people around the world. Our primary products include those for cardiac rhythm disorders, cardiovascular disease, advanced and general surgical care, respiratory and monitoring solutions, renal care, neurological disorders, spinal conditions and musculoskeletal trauma, urological and digestive disorders, and ear, nose, and throat and diabetes conditions.

The table below presents net income attributable to Medtronic and diluted earnings per share for fiscal years 2019, 2018, and 2017:

	Fiscal Year						Percent Change
(in millions, except per share data)	2019		2018		2017		2019		2018
Net income attributable to Medtronic	$	4,631	$	3,104	$	4,028	49	%	(23	)%
Diluted earnings per share	$	3.41	$	2.27	$	2.89	50	%	(21	)%

The increase in net income attributable to Medtronic and diluted earnings per share (EPS) for fiscal year 2019 as compared to fiscal year 2018 was primarily attributable to the $2.4 billion tax charge recognized during fiscal year 2018 related to the enactment of U.S. comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). Further contributing to the increases was a reduction in other operating expense, net, and an increase in other non-operating income, net. These items were partially offset by the $697 million gain on the sale of our Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses within the Minimally Invasive Therapies Group on July 29, 2017 (the "Divestiture") in fiscal year 2018, along with increases in interest expense and restructuring and associated costs.

The decrease in net income attributable to Medtronic and diluted EPS for fiscal year 2018 as compared to fiscal year 2017 was unfavorably affected by the aforementioned $2.4 billion tax charge related to the Tax Act, along with the impacts of the Divestiture;

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net sales of the divested businesses for fiscal years 2018 and 2017 were $0.6 billion and $2.4 billion, respectively. For fiscal year 2018, decreases in net income attributable to Medtronic and diluted EPS were partially offset by a $697 million gain on the Divestiture.

Refer to the "Costs and Expenses" section of this Management's Discussion and Analysis for more information on the items impacting net income attributable to Medtronic and diluted EPS during fiscal years 2019, 2018, and 2017.

GAAP to Non-GAAP Reconciliations The tables below present reconciliations of our Non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with U.S. GAAP for fiscal years 2019, 2018, and 2017:

	Fiscal year ended April 26, 2019
(in millions, except per share data)	Income Before Income Taxes			Income Tax Provision		Net Income Attributable to Medtronic			Diluted EPS (1)			Effective Tax Rate
GAAP	$	5,197		$	547	$	4,631		$	3.41		10.5	%
Non-GAAP Adjustments:
Restructuring and associated costs (2)	407			66		341			0.25			16.2
Acquisition-related items (3)	88			16		72			0.05			18.2
Certain litigation charges	166			24		142			0.10			14.5
(Gain)/loss on minority investments (4)	(62		)	3		(65		)	(0.05		)	(4.8	)
Debt tender premium and other charges (5)	457			113		344			0.25			24.7
IPR&D charges (6)	58			9		49			0.04			15.5
Exit of businesses (7)	149			31		118			0.09			20.8
Amortization of intangible assets	1,764			267		1,497			1.10			15.1
Certain tax adjustments, net (8)	—			40		(40		)	(0.03		)	—
Non-GAAP	$	8,224		$	1,116	$	7,089		$	5.22		13.6	%

	Fiscal year ended April 27, 2018
(in millions, except per share data)	Income Before Income Taxes			Income Tax Provision			Net Income Attributable to Medtronic			Diluted EPS (1)			Effective Tax Rate
GAAP	$	5,675		$	2,580		$	3,104		$	2.27		45.5	%
Non-GAAP Adjustments:
Restructuring and associated costs (2)	107			20			87			0.06			18.7
Acquisition-related items (9)	132			42			90			0.07			31.8
Debt redemption premium (10)	38			12			26			0.02			31.6
Divestiture-related items (11)	115			12			103			0.08			10.4
Certain litigation charges	61			8			53			0.04			13.1
Investment loss (12)	227			(1		)	228			0.17			(0.4	)
IPR&D charges (13)	46			5			41			0.03			10.9
Gain on sale of businesses (14)	(697		)	—			(697		)	(0.51		)	—
Hurricane Maria (15)	34			1			33			0.02			2.9
Contribution to Medtronic Foundation	80			26			54			0.04			32.5
Amortization of intangible assets	1,823			322			1,501			1.10			17.7
Certain tax adjustments, net (16)	—			(1,907		)	1,907			1.39			—
Non-GAAP	$	7,641		$	1,120		$	6,530		$	4.77		14.7	%

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	Fiscal year ended April 28, 2017
(in millions, except per share data)	Income Before Income Taxes		Income Tax Provision		Net Income Attributable to Medtronic		Diluted EPS (1)		Effective Tax Rate
GAAP	$	4,602	$	578	$	4,028	$	2.89	12.6	%
Non-GAAP Adjustments:
Restructuring charges, net	373		101		272		0.20		27.1
Acquisition-related items (9)	230		74		156		0.11		32.2
Certain litigation charges	300		110		190		0.14		36.7
Contribution to Medtronic Foundation	100		37		63		0.05		37.0
Impact of inventory step-up (17)	38		14		24		0.02		36.8
Amortization of intangible assets	1,980		520		1,460		1.05		26.3
Certain tax adjustments, net (18)	—		(202)		202		0.15		—
Non-GAAP	$	7,623	$	1,232	$	6,395	$	4.60	16.2	%

(1) Amounts in this column have been intentionally rounded to the nearest $0.01 and, therefore, may not sum.

(2) Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses.

(3) The charges include unvested stock option payouts and investment banker and other transaction fees, along with integration-related costs incurred in connection with the Covidien acquisition and changes in the fair value of contingent consideration.

(4) Effective in fiscal year 2019, we exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.

(5) The net charge, which includes $485 million recognized in interest expense and ($28 million) recognized in other operating expense, net, primarily relates to the early redemption of approximately $6.4 billion of Medtronic Inc. and CIFSA senior notes.

(6) The charges represent acquired IPR&D in connection with asset acquisitions and charges recognized in connection with the impairment of IPR&D assets.

(7) The net charge relates to business exits and is primarily comprised of intangible asset impairments.

(8) The net benefit relates to the impacts of U.S. tax reform, along with intercompany legal entity restructuring, and the finalization of certain income tax aspects of the Divestiture.

(9) The charges primarily include integration-related costs incurred in connection with the Covidien acquisition and changes in the fair value of contingent consideration.

(10) The charge, included within interest expense in our consolidated statements of income, was recognized in connection with the early redemption of approximately $1.2 billion of Medtronic Inc. senior notes.

(11) The transaction expenses incurred in connection with the Divestiture.

(12) The charge was recognized in connection with the impairment of certain cost and equity method investments.

(13) The charge was recognized in connection with the impairment of IPR&D assets.

(14) The gain on the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses.

(15) The charges represent idle facility costs, asset write-downs, and humanitarian efforts related to Hurricane Maria.

(16) The net charge primarily relates to the impact of U.S. tax reform, inclusive of the transition tax, remeasurement of deferred tax assets and liabilities, and the decrease in the U.S. statutory tax rate. Additionally, the net charge includes the impacts from the Divestiture, and the net tax cost associated with an internal reorganization, which were partially offset by the tax effects from the intercompany sale of intellectual property.

(17) The charge represents the amortization of step-up in fair value of inventory acquired in connection with the Covidien acquisition.

(18) The net charge primarily relates to the tax effect from the recognition of the outside basis of certain subsidiaries which were included in the Divestiture, along with certain tax charges recorded in connection with the redemption of an intercompany minority interest, and the resolution of various tax matters from prior periods.

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NET SALES

Segment and Division

The table below illustrates net sales by segment and division for fiscal years 2019, 2018, and 2017:

	Net Sales by Fiscal Year						Percent Change
(in millions)	2019		2018		2017		2019		2018
Cardiac Rhythm & Heart Failure	$	5,849	$	5,947	$	5,649	(2	)%	5	%
Coronary & Structural Heart	3,730		3,562		3,113		5		14
Aortic, Peripheral & Venous	1,926		1,845		1,736		4		6
Cardiac and Vascular Group	11,505		11,354		10,498		1		8
Surgical Innovations	5,753		5,537		5,145		4		8
Respiratory, Gastrointestinal, & Renal	2,725		3,179		4,774		(14	)	(33	)
Minimally Invasive Therapies Group	8,478		8,716		9,919		(3	)	(12	)
Spine	2,654		2,668		2,641		(1	)	1
Brain Therapies	2,604		2,354		2,098		11		12
Specialty Therapies	1,641		1,556		1,491		5		4
Pain Therapies	1,284		1,165		1,136		10		3
Restorative Therapies Group	8,183		7,743		7,366		6		5
Diabetes Group	2,391		2,140		1,927		12		11
Total	$	30,557	$	29,953	$	29,710	2	%	1	%

Net sales growth for fiscal year 2019 as compared to fiscal year 2018 was primarily attributable to strong growth in our Restorative Therapies Group and Diabetes Group, partially offset by the impact of the Divestiture within the Minimally Invasive Therapies Group.

Our performance displays our continued execution against our three growth strategies: therapy innovation, globalization, and economic value. We continue to allocate our capital to higher growth markets and new opportunities that create competitive advantages and capitalize on the long-term trends in healthcare: namely, the desire to improve clinical outcomes; the growing demand for expanded access to care; and the optimization of cost and efficiency within healthcare systems.

We continue to see an acceleration in our innovation cycle within our therapy innovation growth strategy. Our segments invest in a pipeline of groundbreaking medical technology, with several recent product launches and adoption of new therapies contributing to net sales growth. We remain focused on our globalization strategy, as net sales in emerging markets grew 6 percent during fiscal year 2019 as compared to fiscal year 2018. Our emerging market performance continues to benefit from geographic diversification, with strong, balanced results around the world. Finally, in our third growth strategy, economic value, we continue to execute our value-based healthcare signature programs and aggressively develop unique, value-based healthcare solutions that directly link our therapies to improving outcomes while delivering improved economic value to the payers and providers. We remain focused on leading the shift to healthcare payment systems that reward value and improved patient outcomes over volume.

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Segment and Market Geography

The tables below include net sales by market geography for each of our segments for fiscal years 2019, 2018, and 2017:

	U.S.(1)						Non-U.S. Developed Markets(2)						Emerging Markets(3)
(in millions)	Fiscal Year 2019		Fiscal Year 2018		% Change		Fiscal Year 2019		Fiscal Year 2018		% Change		Fiscal Year 2019		Fiscal Year 2018		% Change
Cardiac and Vascular Group	$	5,750	$	5,681	1	%	$	3,767	$	3,790	(1	)%	$	1,988	$	1,883	6	%
Minimally Invasive Therapies Group	3,630		3,804		(5	)	3,250		3,378		(4	)	1,598		1,534		4
Restorative Therapies Group	5,478		5,164		6		1,759		1,720		2		946		859		10
Diabetes Group	1,336		1,226		9		855		739		16		200		175		14
Total	$	16,194	$	15,875	2	%	$	9,631	$	9,627	—	%	$	4,732	$	4,451	6	%

	U.S.(1)						Non-U.S. Developed Markets(2)						Emerging Markets(3)
(in millions)	Fiscal Year 2018		Fiscal Year 2017		% Change		Fiscal Year 2018		Fiscal Year 2017		% Change		Fiscal Year 2018		Fiscal Year 2017		% Change
Cardiac and Vascular Group	$	5,681	$	5,454	4	%	$	3,790	$	3,393	12	%	$	1,883	$	1,651	14	%
Minimally Invasive Therapies Group	3,804		5,049		(25	)	3,378		3,479		(3	)	1,534		1,391		10
Restorative Therapies Group	5,164		5,012		3		1,720		1,588		8		859		766		12
Diabetes Group	1,226		1,148		7		739		625		18		175		154		14
Total	$	15,875	$	16,663	(5	)%	$	9,627	$	9,085	6	%	$	4,451	$	3,962	12	%

(1) U.S. includes the United States and U.S. territories.

(2) Non-U.S. developed markets include Japan, Australia, New Zealand, Korea, Canada, and the countries within Western Europe.

(3) Emerging markets include the countries of the Middle East, Africa, Latin America, Eastern Europe, and the countries of Asia that are not included in the non-U.S. developed markets, as defined above.

Net sales increases in the U.S. for fiscal year 2019 as compared to fiscal year 2018 were primarily attributable to strong growth in our Restorative Therapies Group and Diabetes Group, partially offset by the impact of the Divestiture within the Minimally Invasive Therapies Group. Net sales remained flat in non-U.S. developed markets for fiscal year 2019, reflecting consistent growth across our segments in Japan and Korea, partially offset by declines in Australia. Net sales growth in emerging markets continues to reflect our broad diversification and was driven by strong performance in China, the Middle East & Africa, Eastern Europe, and both South and Southeast Asia. Currency had an unfavorable impact on net sales in non-U.S. developed markets and emerging markets of $205 million and $250 million, respectively, for fiscal year 2019.

Net sales declines in the U.S. for fiscal year 2018 as compared to fiscal year 2017 were primarily attributable to the Divestiture within the Minimally Invasive Therapies Group, partially offset by growth in our other segments. Net sales growth in non-U.S.

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developed markets was led by strong performance in Western Europe. Net sales growth in emerging markets continues to reflect our broad diversification and was driven by strong performance in all of our segments, with strong performance in China, Latin America, Eastern Europe, and the Middle East & Africa.

Looking ahead, our segments are likely to face competitive product launches and pricing pressure, geographic macro-economic risks, reimbursement challenges, impacts from changes in the mix of our product offerings, the timing of product registration approvals, replacement cycle challenges, and fluctuations in currency exchange rates. Additionally, changes in procedural volumes could affect our Cardiac and Vascular, Minimally Invasive Therapies, and Restorative Therapies Groups.

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 fiscal year 2019 were $11.5 billion, an increase of 1 percent as compared to fiscal year 2018. Currency had an unfavorable impact on net sales for fiscal year 2019 of $182 million. The Cardiac and Vascular Group's net sales for fiscal year 2019, as compared to fiscal year 2018, benefited from net sales growth in Coronary & Structural Heart and Aortic, Peripheral & Venous (formerly known as Aortic & Peripheral Vascular) divisions, offset by declines in Cardiac Rhythm & Heart Failure.

Cardiac Rhythm & Heart Failure net sales for fiscal year 2019 were $5.8 billion, a decrease of 2 percent as compared to fiscal year 2018. Cardiac Rhythm & Heart Failure net sales decrease for fiscal year 2019 was driven by declines in Heart Failure, Care Management Services, and CLMS, offset by growth in Arrhythmia Management. The decline in Heart Failure was driven by CRT-D replacements and LVAD headwinds due to a competitor product launch in the U.S. and changes in the U.S. heart transplant guidelines. The growth in Arrhythmia Management was driven by AF Solutions due to the continued strength of the Arctic Front Cardiac CryoAblation Catheter System and Diagnostics due to growth from our Reveal LINQ insertable cardiac monitor. Arrhythmia Management net sales growth also benefited from strong adoption of the TYRX absorbable antibacterial envelope through further expansion of value-based health-care arrangements.

Coronary & Structural Heart net sales for fiscal year 2019 were $3.7 billion, an increase of 5 percent as compared to fiscal year 2018. Coronary & Structural Heart net sales growth for fiscal year 2019 was driven by the global strength of the CoreValve Evolut PRO transcatheter aortic valve system (Evolut PRO) and continued penetration into intermediate risk in the U.S., as well as growth in cannulae, including the Bio-Medicus Next Gen Cannulae, guide catheters, and coronary balloons.

Aortic, Peripheral & Venous net sales for fiscal year 2019 were $1.9 billion, an increase of 4 percent as compared to fiscal year 2018. Aortic, Peripheral & Venous net sales growth for fiscal year 2019 was driven by strong performance of the VenaSeal vein closure system, for which final approval for reimbursement payment in the U.S. from the Centers for Medicare & Medicaid Services (CMS) was received in January 2018, growth in Percutaneous Transluminal Angioplasty (PTA) balloons, as well as the launch of the Valiant Navion thoracic stent graft system which received U.S. FDA and CE Mark approval in October and November 2018, respectively.

Cardiac Rhythm & Heart Failure net sales for fiscal year 2018 were $5.9 billion, an increase of 5 percent as compared to fiscal year 2017. Cardiac Rhythm & Heart Failure net sales growth for fiscal year 2018 was driven by strong growth in Arrhythmia Management and Heart Failure. The strong growth in Arrhythmia Management was largely due to growth in AF Solutions, driven by the continued global acceptance of our Arctic Front Cardiac CryoAblation Catheter System, growth in Diagnostics, driven by the continued adoption of the Reveal LINQ insertable cardiac monitor, as well as strong adoption of the Micra transcatheter pacing system and TYRX absorbable antibacterial envelope. The strong growth in Heart Failure was driven by growth in Mechanical Circulatory Support from sales of the HVAD system, as well as continued demand for the CRT-P quadripolar pacing system, which launched in the U.S. in the first quarter of fiscal year 2018.

Coronary & Structural Heart net sales for fiscal year 2018 were $3.6 billion, an increase of 14 percent as compared to fiscal year 2017. Coronary & Structural Heart net sales growth for fiscal year 2018 was largely driven by the continued strong customer adoption of Evolut PRO and the Evolut R 34mm transcatheter aortic heart valve, as well as continued penetration into intermediate risk in the U.S., which received approval late in the first quarter of fiscal year 2018. Net sales growth was also driven by the continued strong demand for the Resolute Onyx drug-eluting stent in the U.S. and Japan, which launched in the first quarter of fiscal year 2018.

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Aortic, Peripheral & Venous net sales for fiscal year 2018 were $1.8 billion, an increase of 6 percent as compared to fiscal year 2017. Aortic, Peripheral & Venous net sales growth for fiscal year 2018 was driven by growth in Valiant Captivia thoracic stent grafts, PTA and drug-coated balloons, as well as success of the Heli-FX EndoAnchor System. Net sales growth was further driven by strong performance in EndoVenous due to accelerated growth of the VenaSeal vein closure system, for which approval for reimbursement payment in the U.S. from CMS was received in January 2018.

Looking ahead, we expect our Cardiac and Vascular Group could be affected by the following:

• Acceptance and growth from penetration of the self-expanding CoreValve Evolut transcatheter aortic valve replacement platform into intermediate risk indication in the U.S.

• Continued acceptance and growth from Evolut PRO, which provides industry-leading hemodynamics, reliable delivery, and advanced sealing with an excellent safety profile. Evolut PRO received CE Mark approval at the end of the first quarter of fiscal year 2018 and launched in Europe during the second quarter of fiscal year 2018. Evolut PRO launched in Japan and received approval from the Ministry of Health, Labour, and Welfare during the second quarter of fiscal year 2019.

• Continued acceptance and growth of the CRT-P quadripolar pacing system.

• Continued acceptance and growth of the Claria MRI CRT-D system with EffectivCRT Diagnostic and Effective CRT during AF algorithm, which launched in Japan during the third quarter of fiscal year 2018.

• Continued growth of our Micra transcatheter pacing system. We received final approval for reimbursement in the U.S. from the CMS and in Japan from the Ministry of Health, Labour, and Welfare during the fourth quarter of fiscal year 2017 and during the second quarter of fiscal year 2018, respectively, which we expect will continue to accelerate sales in the U.S. and in Japan.

• Continued acceptance and growth from the Azure XT and S SureScan pacing systems, which launched in the U.S. during the third quarter of fiscal year 2018. Azure pacemakers feature Medtronic-exclusive BlueSync technology, which enables automatic, secure wireless remote monitoring with increased device longevity.

• Continued acceptance of the HVAD System as a Destination Therapy for patients with advanced heart failure who are not candidates for heart transplants. The HVAD System, a left ventricular assist device or LVAD, helps the heart pump and increases the amount of blood that flows through the body. In the U.S., we received FDA approval for the Destination Therapy indication in September 2017 and the thoracotomy indication in July 2018, which allows for a less-invasive implant via a small surgical incision between the patient's ribs on the left side of the chest. We expect that future LVAD net sales will be impacted by a competitor's product launch and the impact of changes in the U.S. heart transplant guidelines.

• Continued growth, adoption, and utilization of the TYRX Envelope for implantable devices driven by the favorable results of the WRAP-IT clinical study.

• Continued acceptance of Care Management Services as post-acute care services become even more critical in bundled payment models for different interventions or therapies.

• Approval and acceptance of the self-expanding CoreValve Evolut transcatheter aortic valve replacement platform for the treatment of patients determined to be at low risk with surgery. The application for expanded indication is pending regulatory approval and is anticipated in fiscal year 2020.

• Continued acceptance and growth from the VenaSeal vein closure system in the United States, for which reimbursement payment was established in January 2018 and payer coverage has been gradually increasing. The VenaSeal system is a unique non-thermal solution to address superficial venous disease that provides improved patient comfort, reduces the recovery time, and eliminates the risk of thermal nerve injury.

• Continued acceptance and growth from the Valiant family of thoracic stent grafts, including the Valiant Navion which received U.S. FDA approval in October 2018 and CE Mark approval in November 2018.

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Minimally Invasive Therapies Group

The Minimally Invasive Therapies Group’s products span the entire continuum of patient care from diagnosis to recovery, with a focus on diseases of the gastrointestinal tract, lungs, pelvic region, kidneys, obesity, and preventable complications. The products include those for advanced and general surgical products including surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, hernia mechanical devices, mesh implants, advanced ablation, interventional lung, ventilators, capnography, airway products, sensors, dialysis, and monitors. Net sales for the three months ended July 28, 2017 and fiscal year 2017 also include sales of dental and animal health, chart paper, wound care, incontinence, electrodes, SharpSafety, thermometry, perinatal protection, blood collection, compression, and enteral feeding offerings, which were divested on July 29, 2017.

The Minimally Invasive Therapies Group’s net sales for fiscal year 2019 were $8.5 billion, a decrease of 3 percent as compared to fiscal year 2018. Currency had an unfavorable impact on net sales of $164 million for fiscal year 2019. The Minimally Invasive Therapies Group's net sales for fiscal year 2018 were affected by the Divestiture.

Subsequent to the Divestiture, during the second quarter of fiscal year 2018, the Surgical Solutions and Patient Monitoring & Recovery divisions were realigned into the Surgical Innovations and Respiratory, Gastrointestinal, & Renal divisions. The Surgical Innovations division consists of the Advanced Surgical and General Surgical businesses. The Advanced Surgical business includes the Advanced Stapling, Advanced Energy, Hernia, Gynecology, and Interventional Lung product lines. The General Surgical business includes the Wound Closure, Electrosurgery, and Instrument product lines.

The Respiratory, Gastrointestinal, & Renal division consists of the Patient Monitoring, Respiratory Interventions, GI & Hepatology, and Renal Care Solutions businesses. The Patient Monitoring business includes Oxygenation, Anesthesia, and Perfusion Monitoring and Informatics product lines. The Respiratory Interventions business includes Airway and Ventilation product lines. The GI & Hepatology business includes GI Diagnostics and Therapeutics product lines. The Renal Care Solutions business includes the Renal Access and Dialyzers product lines.

Surgical Innovations net sales for fiscal year 2019 were $5.8 billion, an increase of 4 percent as compared to fiscal year 2018. Surgical Innovations net sales growth was driven by new products in Advanced Stapling and Advanced Energy, led by the LigaSure vessel sealing instruments with nano-coating, Exact and L-Hook, and both the Tri-Staple 2.0 endo stapling specialty reloads and Signia powered stapler.

Respiratory, Gastrointestinal, & Renal net sales for fiscal year 2019 were $2.7 billion, a decrease of 14 percent as compared to fiscal year 2018, due to the Divestiture. Aside from the decline due to the Divestiture, Respiratory, Gastrointestinal, & Renal net sales growth was driven by growth in Patient Monitoring, including the continued adoption of MicroStream capnography monitoring products and pulse oximetry, along with growth in Respiratory Interventions, including the continued adoption of ventilators and video laryngoscopy products. Also driving growth for fiscal year 2019 was growth in GI & Hepatology and strength in renal access products.

Surgical Innovations net sales for fiscal year 2018 were $5.5 billion, an increase of 8 percent as compared to fiscal year 2017. Surgical Innovations net sales growth was driven by new products in Advanced Stapling and Advanced Energy, including the Signia powered surgical stapling system and endo stapling specialty reloads. Also driving net sales growth was our Valleylab FT10 energy platform and new iterations of our LigaSure vessel sealing instruments, along with growth in emerging markets.

Respiratory, Gastrointestinal, & Renal net sales for fiscal year 2018 were $3.2 billion, a decrease of 33 percent as compared to fiscal year 2017. Respiratory, Gastrointestinal, & Renal net sales declined as a result of the Divestiture. Apart from the decline in net sales due to the Divestiture, net sales performance in Respiratory, Gastrointestinal, & Renal benefited from growth in GI Solutions, the strength in Nellcor pulse oximetry products due to the intensity of the flu season in the U.S., the continued adoption of MicroStream capnography monitoring product, and growth in Airway and Ventilation net sales.

Looking ahead, we expect our Minimally Invasive Therapies Group could be affected by the following:

• Continued acceptance and future growth of Open-to-MIS techniques and tools supported by our efforts to transition open surgery to MIS. The Open-to-MIS initiative focuses on furthering our presence in and working to optimize open surgery globally, while capturing the market opportunity that exists in transitioning open procedures to MIS, whether through traditional MIS, or advanced technologies including robotics.

• Continued acceptance and future growth of powered stapling and energy platform, along with our ability to execute ongoing strategies to develop, gain regulatory approval, and commercialize new products including our surgical robotics platform.

• Our ability to obtain adequate replacement sterilization capacity in our Surgical Innovations business and Gastrointestinal product lines in light of the Illinois Environmental Protection Agency's (Illinois EPA) decision to close the Sterigenics U.S. LLC (Sterigenics) Willowbrook, Illinois facility on February 15, 2019. We have

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been working to identify alternate suppliers and rerouting our supply chain, and expect to return to full sterilization capacity late in the first quarter of fiscal year 2020.

• The July 29, 2017 divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses. Net sales of the businesses included in the Divestiture were $0.6 billion and $2.4 billion for fiscal years 2018 and 2017, respectively. We have entered into Transition Manufacturing Agreements (TMAs) with Cardinal Health, Inc. (Cardinal). The TMAs will contribute to net sales and are designed to ensure and facilitate an orderly transfer of business operations for a transition period of two to five years, with the ability to extend upon mutual agreement of the parties.

• Our ability to execute ongoing strategies in order to address the competitive pressure of reprocessing of our vessel sealing disposables in the U.S.

• Our ability to create markets and drive product and procedures into emerging markets. We have high quality and cost-effective surgical products designed for customers in emerging markets such as the ValleyLab LS10 single channel vessel sealing generator, which is compatible with our line of LigaSure instruments and designed for simplified use and affordability.

• Continued acceptance and growth within the end stage renal disease market. The population of patients treated for end stage renal disease globally is expected to double over the next decade. We will grow our therapy innovation with scalable and affordable dialysis delivery while investing in vascular creation and maintenance technologies. In addition, the HD multi-pass system reduces infrastructure by requiring less water, less start-up costs, and offers high quality ultrapure dialysate treatment. We are expecting regulatory filing in early fiscal year 2021, with launch following regulatory clearance in targeted countries.

• Continued elevation of the standard of care for respiratory compromise, a progressive condition impacting a patient’s ability to breathe effectively.

• Continued acceptance and growth in respiratory care, airway and ventilation management, and Patient Monitoring. Key products in this area include the Puritan Bennett 980 ventilator, Microstream Capnography bedside capnography monitor, portable monitor with Nellcor pulse oximetry system with OxiMax technology and the Nellcor Respiratory Compromise monitor with vital signs of SpO2, pulse rate, End-Tidal CO2, McGRATH MAC video laryngoscopes, and Respiratory Rate.

• Continued and future acceptance of less invasive standards of care, including the areas of GI Diagnostic and Therpeutic product lines. Recently launched products include the PillCam COLON capsule endoscopy, the Barrx platform through ablation with the Barrx 360 Express catheter, Endoflip Reflux/Disphagia diagnosis, Bravo Calibration-free reflux testing, and the Emprint ablation system with Thermosphere Technology, which maintains predictable spherical ablation zones throughout procedures reducing procedure time and cost.

• Continued and future acceptance of Interventional Lung Solutions. Products include the superDimension GenCut core biopsy system and the Triple Needle Cytology Brush, a lung tissue biopsy tool for use with the superDimension navigation system. The superDimension system enables a minimally invasive approach to accessing difficult-to-reach areas of the lung, which may aid in the diagnosis of lung cancer.

• Expanding the use of less invasive treatments and furthering our commitment to improving options for women with abnormal uterine bleeding. Our expanded and strengthened surgical offerings are expected to complement our global gynecology business.

Restorative Therapies Group

The Restorative Therapies Group's products focus on various areas of the spine, bone graft substitutes, biologic products, trauma, implantable neurostimulation therapies and drug delivery systems for the treatment of chronic pain, movement disorders, epilepsy, overactive bladder, urinary retention, fecal incontinence and gastroparesis, as well as products to treat conditions of the ear, nose, and throat (ENT), and systems that incorporate advanced energy surgical instruments. The Restorative Therapies Group also manufactures and sells image-guided surgery and intra-operative imaging systems, robotic guidance systems used in robot assisted spine procedures, and therapies to treat diseases of the vasculature in and around the brain, including coils, neurovascular stent retrievers, and flow diversion products. The Restorative Therapies Group’s net sales for fiscal year 2019 were $8.2 billion, an increase of 6 percent as compared to fiscal year 2018. Currency had a negative impact on net sales for fiscal year 2019 of $73 million. The Restorative Therapies Group’s performance for fiscal year 2019 was driven by the Brain Therapies, Specialty Therapies, and Pain Therapies divisions.

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Spine net sales for fiscal year 2019 were $2.7 billion, a decrease of 1 percent as compared to fiscal year 2018. Despite the decline, we saw incremental growth driven by increased spinal impact attachment rates in conjunction with our Surgical Synergy strategy, which integrates our spinal implants with enabling technologies such as robotics, imaging, navigation, power instruments, and nerve monitoring. Further contributing to growth was our "Speed-to-Scale" initiative, which involves faster innovation cycles and the launching of a steady cadence of new products at scale with sets immediately available for the entire market. Recently launched products include the Infinity OCT System and the Solera Voyager 5.5/6.0 fixation system.

Brain Therapies net sales for fiscal year 2019 were $2.6 billion, an increase of 11 percent as compared to fiscal year 2018. Brain Therapies net sales growth was driven by strong growth in both Neurovascular and Neurosurgery. Neurovascular net sales growth was driven by strength across our stroke franchise, with growth across our stent retriever, flow diversion, neuro access, coil, and embolic protection products. Neurosurgery net sales growth was driven by strong capital equipment sales of the Mazor X robotic guidance systems, StealthStation S8 surgical navigation systems, Midas Rex powered surgical instrument systems, O-Arm Imaging Systems, and Visualase MRI-guided laser ablation systems.

Specialty Therapies net sales for fiscal year 2019 were $1.6 billion, an increase of 5 percent as compared to fiscal year 2018. Net sales growth was driven by strong sales of the Aquamantys biopolar sealers and PlasmaBlade dissection devices within Transformative Solutions and growth in ENT.

Pain Therapies net sales for fiscal year 2019 were $1.3 billion, an increase of 10 percent as compared to fiscal year 2018. The increase in net sales was driven by our Intellis spinal cord stimulation platform which received U.S. FDA approval in September 2017 and CE Mark in November 2017. Further driving net sales growth were the Evolve workflow algorithm, Snapshot reports, and our Targeted Drug Delivery products, including the new clinician and patient programmers.

Spine net sales for fiscal year 2018 were $2.7 billion, an increase of 1 percent as compared to fiscal year 2017. Spine net sales growth was driven by growth in bone morphogenetic protein (composed of INFUSE bone graft (InductOs in the European Union)), partially offset by a slight decline in Core Spine. Core Spine net sales declined due to continued overall market softness in the U.S. and Europe, partially offset by the continued success of our Surgical Synergy strategy and our "Speed-to-Scale" initiative.

Brain Therapies net sales for fiscal year 2018 were $2.4 billion, an increase of 12 percent as compared to fiscal year 2017. Brain Therapies net sales growth was driven by strong growth in both Neurovascular and Neurosurgery. Neurovascular net sales growth was driven by strength across our stroke portfolio, specifically in stents, as a result of our leading role in the development of the endovascular therapy market for treatment of ischemic stroke. Neurosurgery net sales growth was driven by strong sales of the StealthStation S8 surgical navigation system, O-arm O2 surgical imaging system, Visualase MRI-guided laser ablation system, Midas disposables, as well as disposables revenue from placement of capital equipment. Net sales growth in Neurovascular and Neurosurgery for fiscal year 2018 was partially offset by slight declines in Brain Modulation due to competitive pressures in major markets.

Specialty Therapies net sales for fiscal year 2018 were $1.6 billion, an increase of 4 percent as compared to fiscal year 2017. Specialty Therapies net sales growth was driven by growth in ENT, Pelvic Health, and Transformative Solutions.

Pain Therapies net sales for fiscal year 2018 were $1.2 billion, an increase of 3 percent as compared to fiscal year 2017. Pain Therapies net sales growth was driven by Interventional from the OsteoCool RF Spinal Tumor ablation system. Within Spinal Cord Stimulation, the Intellis Platform launch and ongoing roll-out of the Evolve workflow algorithm contributed to net sales in fiscal year 2018 and helped mitigate competitive pressures in the U.S. and Europe.

Looking ahead, we expect our Restorative Therapies Group could be affected by the following:

• Continued acceptance and growth of the Solitare FR revascularization device for treatment of acute ischemic stroke and the Pipeline Embolization Devices, endovascular treatments for large or giant wide-necked brain aneurysms.

• Acceptance of our React Catheter and Riptide aspiration system, along with the launch of our next-generation Solitaire revascularization device.

• Continued growth from Neurosurgery StealthStation and O-Arm Imaging Systems, Midas, and ENT Navigation and Power Systems.

• Continued sales of Mazor robotic units and associated market adoption of robot-assisted spine procedures, including the Mazor X Stealth, our integrated robotics and navigation platform, which received FDA approval in November 2018.

• Strengthening of our position as a global leader in enabling technologies for spine surgery as a result of the December 2018 acquisition of Mazor Robotics.

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• Continued adoption of our integrated solutions through the Surgical Synergy strategy, which integrates our spinal implants with enabling technologies such as imaging, navigation, power instruments, nerve monitoring and Mazor robotics.

• Market acceptance and continued global adoption of innovative new Spine products, such as our Infinity OCT System and Solera Voyager 5.5/6.0 fixation system, as well as our CD Horizon Solera Voyager system, our ELEVATE expandable interbody cages, and our OLIF25 and OLIF51 procedural solutions.

• Growth in the broader vertebral compression fracture (VCF) and adjacent markets, as we continue to pursue the development of other therapies to treat more patients with VCF, including continued success of both the Kyphon V vertebroplasty system and the Osteocool RF Spinal Tumor ablation system.

• Continued global adoption of our Intellis spinal cord stimulator, Evolve workflow algorithm, and Snapshot reporting to treat chronic pain in major markets around the world.

• Ongoing obligations under the U.S. FDA consent decree entered in April 2015 relating to the SynchroMed drug infusion system and the Neuromodulation quality system. The U.S. FDA lifted its distribution requirements on our implantable drug pump in October and its warning letter in November 2017.

• Continued acceptance of our devices for the treatment of Parkinson's Disease, epilepsy and other movement disorders. We launched our medically refractory epilepsy device in the U.S. in November 2018.

• Continued acceptance and growth of our Specialty Therapies, including InterStim therapy for the treatment of the symptoms of overactive bladder, urinary retention, and bowel incontinence, and Transformative Solutions core portfolio products including Aquamantys biopolar sealers and PlasmaBlade soft tissue dissection devices.

Diabetes Group

The Diabetes Group's products include insulin pumps, continuous glucose monitoring (CGM) systems, insulin pump consumables, and therapy management software. The Diabetes Group’s net sales for fiscal year 2019 were $2.4 billion, an increase of 12 percent as compared to fiscal year 2018. Currency had an unfavorable impact on net sales for fiscal year 2019 of $36 million. The Diabetes Group's net sales growth for fiscal year 2019 was primarily attributable to the continued demand for the MiniMed 670G hybrid closed loop system, which offers the latest in SmartGuard technology, as well as the higher sensor attachment and utilization we are seeing with our integrated CGM users. Further, we experienced continued international growth due to strong sales of insulin pump systems in Europe, Latin America, and Asia Pacific as well as worldwide strength of the Guardian Connect CGM system.

The Diabetes Group’s net sales for fiscal year 2018 were $2.1 billion, an increase of 11 percent as compared to fiscal year 2017. The Diabetes Group's net sales growth for fiscal year 2018 was primarily attributable to increased sales in the U.S. due to continued growth in our customer base through the adoption of the MiniMed 670G hybrid closed loop system. Further, we experienced continued international growth due to strong sales of the MiniMed 640G system in Europe and Asia Pacific.

Looking ahead, we expect our Diabetes Group could be affected by the following:

• Continued patient demand for the MiniMed 670G system, the first hybrid closed loop system in the world. The system is powered by SmartGuard technology, which mimics some of the functions of a healthy pancreas by providing two levels of automated insulin delivery, maximizing Time in Range with reduced user input. More than 180,000 trained, active users are benefiting from SmartGuard technology.

• Continued acceptance and future growth internationally for the MiniMed 670G system. This system received CE mark in June 2018 and is now commercialized in Canada, Australia, Chile and in certain European countries. The global adoption of sensor-augmented insulin pump systems has resulted in strong sensor attachment rates.

• Changes in medical reimbursement policies and programs, along with additional payor coverage of the MiniMed 670G system.

• Acceptance of the upcoming launch of our advanced hybrid closed loop system, along with the advancement of our Personalized Closed Loop system which was recently granted "Breakthrough Device" designation by the FDA. These technologies feature our next-generation algorithms designed to improve Time in Range by further automating insulin delivery.

• Continued acceptance and growth of the Guardian Connect CGM system which displays glucose information directly to a smartphone.

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• Continued partnership with UnitedHealthcare as the preferred in-network provider of insulin pumps, giving their members, including pediatric patients 7 years and above, access to our advanced diabetes technology and comprehensive support services.

• Continued partnership and future growth of our outcomes-based agreement with select health plans (i.e. Aetna), where a component of our pump reimbursement is based on successfully meeting clinical improvement thresholds as part of our value-based healthcare solutions.

CRITICAL ACCOUNTING ESTIMATES

We have used various accounting policies to prepare the consolidated financial statements in accordance with U.S. GAAP. Our significant accounting policies are disclosed in Note 1 to the consolidated financial statements in "Item 8. Financial Statements and Supplementary Data" in this Annual Report on Form 10-K.

The preparation of the consolidated financial statements, in conformity with U.S. GAAP, requires us to use judgment in making estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates reflect our best judgment about economic and market conditions and the potential effects on the valuation and/or carrying value of assets and liabilities based upon relevant information available. We base our estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

Our critical accounting estimates include the following:

Litigation Contingencies We are involved in a number of legal actions involving product liability, intellectual property and commercial disputes, shareholder related matters, environmental proceedings, income tax disputes, and governmental proceedings and investigations. The outcomes of these legal actions are not completely within our 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 or result in lost revenues or limit our ability to conduct business in the applicable jurisdictions. Estimating probable losses from our litigation and governmental proceedings is inherently difficult, 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. Our significant legal proceedings are discussed in Note 19 to the consolidated financial statements in "Item 8. Financial Statements and Supplementary Data" in this Annual Report on Form 10-K.

Income Tax Reserves and U.S. Tax Reform We establish reserves when, despite our belief that our tax return positions are fully supportable, we believe that certain positions are likely to be challenged and that we may or may not prevail. Under U.S. GAAP, if we determine that a tax position is more likely than not of being sustained upon audit, based solely on the technical merits of the position, we recognize the benefit. We measure the benefit by determining the amount that is greater than 50 percent likely of being realized upon settlement. We presume that all tax positions will be examined by a taxing authority with full knowledge of all relevant information. The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions across our global operations. We regularly monitor our tax positions and tax liabilities. We reevaluate the technical merits of our tax positions and recognize an uncertain tax benefit, or derecognize a previously recorded tax benefit, when there is (i) a completion of a tax audit, (ii) effective settlement of an issue, (iii) a change in applicable tax law including a tax case or legislative guidance, or (iv) the expiration of the applicable statute of limitations. Significant judgment is required in accounting for tax reserves. Although we believe that we have adequately provided for liabilities resulting from tax assessments by taxing authorities, positions taken by these tax authorities could have a material impact on our effective tax rate, consolidated earnings, financial position and/or cash flows.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"), which significantly revised U.S. corporate income taxation by, among other things, lowering the U.S. corporate income tax rate, broadening the base of taxation, and implementing a territorial tax system. We had a measurement period of up to one year after the enactment date of the Tax Act to finalize the recognition of the related tax impacts. The measurement period closed during fiscal year 2019.

Valuation of Intangible Assets and Goodwill When we acquire a business, the assets acquired and liabilities assumed are recorded at their respective fair values at the acquisition date. Goodwill is the excess of the purchase price over the estimated fair value of net assets of acquired businesses. Intangible assets primarily include patents, trademarks, tradenames, customer relationships, purchased technology, and IPR&D. Determining the fair value of intangible assets acquired as part of a business combination requires us to make significant estimates. These estimates include the amount and timing of projected future cash flows of each project or technology, the discount rate used to discount those cash flows to present value, the assessment of the asset’s life cycle, and the consideration of legal, technical, regulatory, economic, and competitive risks.

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The test for goodwill impairment requires us to make several estimates to determine fair value, most of which are based on projected future cash flows. Our estimates associated with the goodwill impairment test are considered critical due to the amount of goodwill recorded on our consolidated balance sheets and the judgment required in determining fair value. We assess the impairment of goodwill at the reporting unit level annually in the third quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired.

We test definite-lived intangible assets for impairment when an event occurs or circumstances change that would indicate the carrying amount of the assets or asset group may be impaired. Our tests are based on future cash flows that require significant judgment with respect to future revenue and expense growth rates, appropriate discount rates, asset groupings, and other assumptions and estimates. We use estimates that are consistent with our business plans and a market participant's view of the assets being evaluated. Actual results may differ from our estimates due to a number of factors including, among others, changes in competitive conditions, timing of regulatory approval, results of clinical trials, changes in worldwide economic conditions, and fluctuations in currency exchange rates.

We assess the impairment of indefinite-lived intangible assets annually in the third quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Our impairment tests of indefinite-lived intangible assets require us to make several estimates to determine fair value, including projected future cash flows and discount rates.

ACQUISITIONS AND DIVESTITURES

Information regarding acquisitions and divestitures is included in Notes 3 and 4, respectively, to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.

NEW ACCOUNTING PRONOUNCEMENTS

Information regarding new accounting pronouncements is included in Note 1 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.

COSTS AND EXPENSES

The following is a summary of cost of products sold, research and development, and selling, general, and administrative expenses as a percent of net sales:

	Fiscal Year
	2019		2018		2017
Cost of products sold	30.0	%	30.3	%	31.3	%
Research and development expense	7.6	%	7.5	%	7.4	%
Selling, general, and administrative expense	34.1	%	34.2	%	33.7	%

Cost of Products Sold We continue to focus on reducing our costs of production through supplier management, manufacturing improvements, and optimizing our manufacturing network.

Cost of products sold was $9.2 billion, $9.1 billion, and $9.3 billion during fiscal years 2019, 2018, and 2017, respectively. The decrease in cost of products sold as a percentage of net sales from fiscal year 2019 as compared to fiscal year 2018 was favorably affected by decreased sales of lower-margin products as a result of the Divestiture. Also contributing to the decrease in cost of products sold as a percentage of net sales during fiscal year 2019 was the infusion set recall in our Diabetes Group, along with $17 million of costs recognized in relation to restoring operations at four Puerto Rico manufacturing sites after Hurricane Maria, including idle facility costs, asset write-downs, and other facility-related costs, incurred during fiscal year 2018. These benefits were slightly offset by increased restructuring and associated costs, a change in product mix due to strong growth in some of our lower-margin businesses, and additional expenses incurred due to the closing of a supplier sterilization facility used by our Minimally Invasive Therapies Group during fiscal year 2019. Cost of products sold for fiscal year 2019 includes $91 million of restructuring and associated costs, as compared to $40 million for fiscal year 2018.

The decrease in cost of products sold as a percentage of sales from fiscal year 2018 as compared to 2017 was due primarily to decreased sales of lower-margin products as a result of the Divestiture and a $38 million charge recognized during fiscal year 2017 related to the fair value step-up taken on inventory acquired in connection with the HeartWare acquisition. Partially offsetting these benefits were the costs recognized in relation to restoring operations at four Puerto Rico manufacturing sites after Hurricane Maria and the infusion set recall in our Diabetes group during fiscal year 2018.

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Research and Development Expense We remain committed to accelerating the development of meaningful innovations to deliver better patient outcomes at appropriate costs that lead to enhanced quality of life and may be validated by clinical and economic evidence. We are also focused on expanding access to quality healthcare. Research and development expense was $2.3 billion during fiscal years 2019 and 2018 and $2.2 billion during fiscal year 2017.

Selling, General, and Administrative Expense Our goal is to continue to leverage selling, general, and administrative expense initiatives and to continue to realize cost synergies expected from our acquisitions. Selling, general, and administrative expense primarily consists of salaries and wages, other administrative costs, such as professional fees and marketing expenses, and certain acquisition, restructuring, and divestiture-related expenses.

Selling, general, and administrative expense was $10.4 billion, $10.2 billion, and $10.0 billion during fiscal years 2019, 2018, and 2017, respectively. The decrease in selling, general, and administrative expense as a percentage of sales from fiscal year 2018 to 2019 benefited from our Enterprise Excellence program, continued net sales growth, cost containment measures, and $115 million of professional service fees and accelerated stock compensation expense incurred in connection with the Divestiture during fiscal year 2018. Offsetting these benefits were increased restructuring and associated costs. Selling, general, and administrative expense in fiscal year 2019 includes $118 million of restructuring and associated costs, as compared to $37 million in fiscal year 2018.

The increase in selling, general, and administrative expense as a percentage of net sales from fiscal year 2017 to 2018 was driven by expenses incurred for new product launches, expenses incurred to fulfill our Transition Service Agreements (TSAs) that we entered into with Cardinal Health in conjunction with the Divestiture, and $115 million of professional service fees and accelerated stock compensation expense incurred in connection with the Divestiture. Offsetting these increases were decreased acquisition-related items. Selling, general, and administrative expense in fiscal year 2018 includes $137 million of acquisition-related items, as compared to $303 million in fiscal year 2017.

The following is a summary of other costs and expenses:

	Fiscal Year
(in millions)	2019			2018			2017
Amortization of intangible assets	$	1,764		$	1,823		$	1,980
Restructuring charges, net	198			30			303
Certain litigation charges	166			61			300
Gain on sale of businesses	—			(697		)	—
Other operating expense, net	258			535			239
Other non-operating income, net	(373		)	(181		)	(313		)
Interest expense	1,444			1,146			1,094

Amortization of Intangible Assets Amortization of intangible assets includes the amortization expense of our definite-lived intangible assets, consisting of purchased patents, trademarks, tradenames, customer relationships, purchased technology, and other intangible assets. Amortization expense was $1.8 billion during fiscal years 2019 and 2018 and $2.0 billion during fiscal year 2017.

While amortization expense remained consistent when comparing fiscal year 2018 to 2019, the decrease in amortization expense from fiscal year 2017 to fiscal year 2018 was primarily attributable to the discontinuation of amortization on the definite-lived intangible assets classified as assets held for sale at April 28, 2017 and through the first quarter of fiscal year 2018 related to the Divestiture, which was completed during the second quarter of fiscal year 2018.

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Restructuring Charges, Net

Enterprise Excellence

In the third quarter of fiscal year 2018, we announced a multi-year global Enterprise Excellence Program designed to drive long-term business growth and sustainable efficiency. The Enterprise Excellence Program is expected to further leverage our global size and scale as well as enhance the customer and employee experience.

The Enterprise Excellence Program is focused on three objectives:

• Global Operations - integrating and enhancing global manufacturing and supply processes, systems and site presence to improve quality, delivery cost and cash flow

• Functional Optimization - enhancing and leveraging global operating models and systems across several enabling functions to improve productivity and employee experience

• Commercial Optimization - optimizing certain processes, systems and models to improve productivity and the customer experience

The Enterprise Excellence Program is designed to drive operating margin improvement, as well as fund investment in strategic growth initiatives, with expected annual gross savings of more than $3.0 billion from cost reductions and leverage of our fixed infrastructure by the end of fiscal year 2022. Approximately $500 million to $700 million of gross annual savings are expected to be achieved each fiscal year through the end of fiscal year 2022.

The Enterprise Excellence Program is expected to result in pre-tax restructuring charges of approximately $1.6 billion to $1.8 billion, the vast majority of which are expected to be incurred by the end of fiscal year 2022 and result in cash outlays to be substantially complete by the end of fiscal year 2023. Approximately half of the estimated restructuring charges are related to employee termination benefits. The remaining restructuring charges are costs associated with the restructuring program, such as salaries for employees supporting the program and consulting expenses. We expect these costs to be recognized within restructuring charges, net, cost of products sold, and selling, general and administrative expense in the consolidated statements of income.

During fiscal year 2019, we recognized restructuring charges of $424 million. For fiscal year 2019, restructuring charges included $198 million recognized within restructuring charges, net in the consolidated statements of income, primarily comprised of employee termination benefits. For fiscal year 2019, restructuring charges also included costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses, including $91 million recognized within cost of products sold and $118 million recognized within selling, general and administrative expense in the consolidated statements of income. For fiscal year 2019, selling, general, and administrative expense also includes $17 million of fixed asset write-downs.

During fiscal year 2018, we recognized restructuring charges of $96 million. For fiscal year 2018, restructuring charges included $35 million recognized within restructuring charges, net in the consolidated statements of income, primarily comprised of employee termination benefits. For fiscal year 2018, restructuring charges also included costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses, including $28 million recognized within cost of products sold and $33 million recognized within selling, general and administrative expense in the consolidated statements of income.

Cost Synergies

In the third quarter of fiscal year 2018, we achieved $850 million in cost synergies related to the acquisition of Covidien plc. The cost synergies related to administrative office optimization, manufacturing and supply chain infrastructure, and certain general and administrative savings. Cash outlays for the cost synergies program are scheduled to be substantially complete by the end of fiscal year 2019.

During fiscal year 2019, we recognized no restructuring charges and accrual adjustments of $17 million. Accrual adjustments relate to certain employees identified for termination finding other positions within Medtronic, cancellations of employee terminations, and employee termination benefits being less than initially estimated.

For fiscal years 2018 and 2017, we recognized restructuring charges of $45 million and $441 million, respectively, partially offset by accrual adjustments of $34 million and $68 million, respectively. Accrual adjustments relate to certain employees identified for termination finding other positions within Medtronic, cancellations of employee terminations, and employee termination benefits being less than initially estimated. For fiscal year 2017, restructuring charges included asset write-downs of $17 million related to property, plant, and equipment impairments and $10 million related to inventory write-offs recognized within cost of

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products sold in the consolidated statements of income. Additionally, fiscal year 2017 restructuring charges included $73 million of incremental defined benefit pension and post-retirement related expenses for employees that accepted voluntary early retirement packages.

For additional information, see Note 5 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.

Certain Litigation Charges We classify litigation charges and gains related to significant legal matters as certain litigation charges. During fiscal years 2019, 2018, and 2017, we recognized $166 million, $61 million, and $300 million, respectively, of certain litigation charges related to probable and estimable damages for significant legal matters.

Gain on Sale of Businesses We recognized a pre-tax gain of $697 million on the sale of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses during fiscal year 2018. There were no sales of businesses during fiscal years 2019 or 2017.

Other Operating Expense, Net Other operating expense, net primarily includes royalty income and expense, TSA income, intangible asset charges, currency transaction and derivative gains and losses, contributions to the Medtronic Foundation, Puerto Rico excise taxes, changes in the fair value of contingent consideration, and charges associated with business exits. Other operating expense, net was $258 million, $535 million, and $239 million, during fiscal years 2019, 2018, and 2017, respectively.

The decrease in other operating expense, net from fiscal year 2018 to fiscal year 2019 was primarily attributable to remeasurement and our hedging programs, which, combined, resulted in a gain of $87 million for fiscal year 2019 and a loss of $176 million for fiscal year 2018. Also contributing to the change was a charge of $80 million recognized in fiscal year 2018 for charitable contributions to the Medtronic Foundation and increased gains from the change in fair value of contingent consideration. These items were partially offset by intangible asset impairments and other charges of $149 million associated with business exits during fiscal year 2019 and a reduction of TSA income.

The increase in other operating expense, net from fiscal year 2017 to fiscal year 2018 was primarily attributable to remeasurement and our hedging programs, which, combined, resulted in a loss of $176 million for fiscal year 2018 and a gain of $81 million for fiscal year 2017. Also contributing to the increase were losses of $68 million related to the impairment of IPR&D assets in fiscal year 2018, $15 million of humanitarian aid provided to our employees affected by Hurricane Maria in fiscal year 2018, and a decrease in gains from the changes in fair value of contingent consideration. These items were partially offset by $74 million of TSA income and a reduction in charitable contributions to the Medtronic Foundation.

Other Non-Operating Income, Net Other non-operating income, net includes the non-service component of net periodic pension and post-retirement benefit cost, investment gains and losses, and interest income. Other non-operating income, net was $373 million, $181 million, and $313 million during fiscal years 2019, 2018, and 2017, respectively.

The change in other non-operating income, net from fiscal year 2018 to 2019 was due to $227 million of losses recognized in fiscal year 2018 related to the impairment of certain cost and equity method investments, increased investment gains on our minority investment portfolio, and decreased interest income. Increases in investment gains on our minority investment portfolio were partially due to the adoption of new accounting guidance in the first quarter of fiscal year 2019. Refer to Note 1 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K for more information on recently adopted accounting pronouncements.

The change in other non-operating income, net from fiscal year 2017 to 2018 was due to $227 million of losses recognized in fiscal year 2018 related to the impairment of certain cost and equity method investments, partially offset by increased interest income, and charges of $60 million related to the non-service component of net periodic pension and post-retirement benefit costs associated with voluntary early retirement packages offered and accepted by certain eligible U.S. employees during fiscal year 2017.

Interest Expense Interest expense includes interest incurred on our outstanding borrowings, amortization of debt issuance costs and debt premiums or discounts, amortization of gains or losses on terminated or de-designated interest rate derivative instruments, ineffectiveness on interest rate derivative instruments, and charges recognized in connection with the tender and early redemption of senior notes. Interest expense was $1.4 billion during fiscal year 2019 and $1.1 billion during fiscal years 2018 and 2017.

The increase in interest expense from fiscal year 2018 to 2019 was the result of $485 million of charges recognized in connection with the tender and early redemption of approximately $6.4 billion of Medtronic Inc. and CIFSA senior notes during fiscal year 2019. This increase in interest expense was partially offset by interest expense savings resulting from a decrease in total debt obligations and a decrease in the weighted-average interest rate of outstanding debt obligations during fiscal year 2019, on average, compared to fiscal year 2018.

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The change in interest expense from fiscal year 2017 to 2018 was primarily driven by modestly higher average interest rates on total debt obligations outstanding and a $38 million charge recognized in connection with the early redemption of approximately $1.2 billion of Medtronic Inc. senior notes during fiscal year 2018.

INCOME TAXES

	Fiscal Year
(in millions)	2019			2018			2017
Income tax provision	$	547		$	2,580		$	578
Income before income taxes	5,197			5,675			4,602
Effective tax rate	10.5		%	45.5		%	12.6		%
Non-GAAP income tax provision	$	1,116		$	1,120		$	1,232
Non-GAAP income before income taxes	8,224			7,641			7,623
Non-GAAP Nominal Tax Rate	13.6		%	14.7		%	16.2		%
Difference between the effective tax rate and Non-GAAP Nominal Tax Rate	3.1		%	(30.8		)%	3.6		%

On December 22, 2017, the U.S. government enacted the Tax Act, which significantly revises U.S. corporate income taxation by, among other things, lowering the U.S. corporate income tax rate from 35.0 percent to 21.0 percent, broadening the base of taxation, implementing a territorial tax system, and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries.

We made the accounting policy election to treat taxes due on U.S. inclusions in taxable income related to Global Intangible Low-Taxed Income (GILTI) as a current period expense when incurred (the "period cost method").

Many of the countries we operate in have statutory tax rates lower than our blended U.S. statutory rate, thereby resulting in an overall effective tax rate less than the U.S. statutory rate of 21.0 percent for fiscal year 2019. A significant portion of our earnings are generated from operations in Puerto Rico, Switzerland, and Ireland. The statutory tax rates for these jurisdictions range from 12.5 percent to 45.1 percent. Our earnings in Puerto Rico and Switzerland are subject to certain tax incentive grants which provide for tax rates lower than the country statutory tax rates. Unless our tax incentive grants are extended, they expire between fiscal years 2020 and 2030. The tax incentive grants which expired during fiscal year 2019 did not have a material impact on our financial results. See Note 14 to the consolidated financial statements in "Item 8. Financial Statements and Supplementary Data" in this Annual Report on Form 10-K for additional information.

Our effective tax rate for fiscal year 2019 was 10.5 percent, as compared to 45.5 percent in fiscal year 2018. The decrease in the effective tax rate was primarily due to the impacts from U.S. tax reform, certain tax adjustments, the gain on the Divestiture, the impact from investment losses, and year-over-year changes in operational results by jurisdiction.

Our Non-GAAP Nominal Tax Rate for fiscal year 2019 was 13.6 percent, as compared to 14.7 percent in fiscal year 2018. The decrease in our Non-GAAP Nominal Tax Rate for fiscal year 2019 as compared to fiscal year 2018 was primarily due to the impacts from U.S. tax reform and year-over-year changes in operational results by jurisdiction.

During fiscal year 2019, we recognized $134 million of operational tax benefits. The operational tax benefits included a $50 million benefit from excess tax benefits associated with stock-based compensation, and an $84 million net benefit associated with the resolution of certain income tax audits, finalization of certain tax returns, changes to uncertain tax position reserves, and changes to certain deferred income tax balances.

Our effective tax rate for fiscal year 2018 was 45.5 percent, as compared to 12.6 percent in fiscal year 2017. The increase in the effective tax rate was primarily due to the impacts from U.S. tax reform, the Divestiture, the utilization of non-U.S. special deductions, the net tax cost associated with an internal reorganization, excess tax benefits associated with stock-based compensation, and the tax effect from the intercompany sales of certain intellectual property.

Our Non-GAAP Nominal Tax Rate for fiscal year 2018 was 14.7 percent, as compared to 16.2 percent in fiscal year 2017. The decrease in our Non-GAAP Nominal Tax Rate for fiscal year 2018 as compared to fiscal year 2017 was primarily due to operational tax benefits and year-over-year changes in operational results by jurisdiction.

During fiscal year 2018, we recognized $135 million of operational tax benefits. The operational tax benefits included a $61 million benefit from excess tax benefits associated with stock-based compensation and a $74 million net benefit associated with

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the resolution of certain income tax audits, finalization of certain tax returns, changes to uncertain tax position reserves, and changes to certain deferred income tax balances.

An increase in our Non-GAAP Nominal Tax Rate of 1 percent would result in an additional income tax provision for fiscal years 2019, 2018, and 2017 of approximately $82 million, $77 million, and $76 million, respectively.

Certain Tax Adjustments

During fiscal year 2019, certain tax adjustments of $40 million, recognized in income tax provision in the consolidated statement of income, included the following:

• A net benefit of $30 million associated with the finalization of the transition tax liability and the Tax Act impact to deferred tax assets, liabilities, and valuation allowances.

• A charge of $42 million related to the recognition of a prepaid tax expense resulting from the reduction in the U.S. statutory tax rate under the Tax Act and the current year sale of U.S. manufactured inventory held as of April 27, 2018.

• A benefit of $32 million related to intercompany legal entity restructuring.

• A net benefit of $20 million associated with the finalization of certain income tax aspects of the Divestiture.

During fiscal year 2018, certain tax adjustments of $1.9 billion, recognized in income tax provision in the consolidated statement of income, included the following:

• A net charge of $2.4 billion associated with U.S. tax reform, inclusive of the transition tax, remeasurement of U.S. Federal deferred tax assets and liabilities, and the decrease in the U.S. statutory tax rate.

• A charge of $73 million associated with an internal reorganization of certain foreign subsidiaries.

• A net benefit of $579 million associated with the intercompany sale of intellectual property.

During fiscal year 2017, certain tax adjustments of $202 million, recognized in income tax provision in the consolidated statement of income, included the following:

• A charge of $404 million associated with the IRS resolution for the Ardian, CoreValve, Inc., Ablation Frontiers, Inc., PEAK Surgical, Inc. and Salient Surgical Technologies, Inc. acquisition-related issues and the allocation of income between Medtronic, Inc. and its wholly owned subsidiary operating in Puerto Rico for certain businesses. This resolution does not include the businesses that are the subject of the Medtronic, Inc. U.S. Tax Court case for fiscal years 2005 and 2006.

• A net charge of $125 million associated with the Divestiture. The net charge primarily relates to the tax effect from the recognition of the outside basis difference of certain subsidiaries which were included in the divestiture.

• A charge of $86 million associated with the IRS’s disallowance of the utilization of certain net operating losses, along with the recognition of a valuation allowance against the net operating loss deferred tax asset, was recognized during the year.

• A charge of $18 million as a result of the redemption of an intercompany minority interest during the year.

• A benefit of $431 million as the result of the resolution of Covidien's previously disclosed Tyco International plc intercompany debt issues with the U.S. Tax Court and the Appeals Division of the IRS.

Certain tax adjustments will affect the comparability of our operating results between periods. Therefore, we consider these Non-GAAP Adjustments. Refer to the "Executive Level Overview" section of this Management's Discussion and Analysis for further discussion of these adjustments.

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LIQUIDITY AND CAPITAL RESOURCES

Our liquidity and capital structure is evaluated regularly within the context of our annual operating and strategic planning process. We consider the liquidity necessary to fund our operations, which includes working capital needs, investments in research and development, property, plant, and equipment, and other operating costs. We also consider capital allocation alternatives that balance returning value to shareholders through dividends and share repurchases, satisfying maturing debt, and acquiring businesses and technology.

Summary of Cash Flows

The following is a summary of cash provided by (used in) operating, investing, and financing activities, the effect of exchange rate changes on cash and cash equivalents, and the net change in cash and cash equivalents:

	Fiscal Year
(in millions)	2019			2018			2017
Cash provided by (used in):
Operating activities	$	7,007		$	4,684		$	6,880
Investing activities	(774		)	5,858			(1,571		)
Financing activities	(5,431		)	(11,954		)	(3,283		)
Effect of exchange rate changes on cash and cash equivalents	(78		)	114			65
Net change in cash and cash equivalents	$	724		$	(1,298	)	$	2,091

Operating Activities The $2.3 billion increase in net cash provided in fiscal year 2019 as compared to fiscal year 2018 was primarily driven by our operating margin expansion as well as decreases in cash paid to suppliers and other vendors, cash paid for taxes, cash paid for interest, and retirement benefit plan contributions, partially offset by an increase in certain litigation payments. The decrease in cash paid to suppliers is primarily due to our continued progress in extending supplier payment terms. The decrease in cash paid for taxes was primarily a result of a $1.1 billion pre-payment that we elected to make to the U.S. IRS in fiscal year 2018 related to in-process litigation on Puerto Rico transfer pricing. Cash paid for interest decreased due to a decrease in total debt obligations as well as a decrease in the weighted average interest rate of outstanding debt obligations. The decrease in retirement benefit plan contributions reflects lower contributions to the U.S. pension plan for fiscal year 2019 as compared to fiscal year 2018. Certain litigation payments increased primarily due to the payment of previously accrued settlement amounts for the INFUSE litigation matter.

The $2.2 billion decrease in net cash provided in fiscal year 2018 as compared to fiscal year 2017 was primarily driven by an increase in cash paid for taxes of $1.5 billion, an increase in net cash outflows for collateral related to our derivative instruments of $145 million, cash paid for divestiture-related expenses of approximately $100 million, and a decrease in cash collected from customers. The increase in cash paid for income taxes was primarily a result of the aforementioned $1.1 billion Puerto Rico pre-payment, tax payments related to the intercompany sale of intellectual property and the Divestiture, as well as settlement payments for U.S. federal income taxes for fiscal years 2012 to 2014 and audit settlements outside of the U.S.

Investing Activities The $6.6 billion increase in net cash used in fiscal year 2019 as compared to fiscal year 2018 was primarily attributable to the Divestiture in fiscal year 2018, which resulted in net proceeds of $6.1 billion, and an increase in cash paid for acquisitions of $1.7 billion, primarily due to the acquisition of Mazor and EPiX during fiscal year 2019, partially offset by an increase in net proceeds from purchases and sales and maturities of investments.

The $7.4 billion increase in net cash provided in fiscal year 2018 as compared to fiscal year 2017 was primarily attributable to the Divestiture in fiscal year 2018, a decrease in cash paid for acquisitions of $1.2 billion, primarily due to the acquisition of Heartware during fiscal year 2017, and a decrease in additions to property, plant, and equipment.

Financing Activities The $6.5 billion decrease in net cash used in fiscal year 2019 as compared to fiscal year 2018 was primarily attributable to the issuance of $7.8 billion of Euro-denominated senior notes in fiscal year 2019, partially offset by an increase in share repurchases of $706 million and an increase in repayments of commercial paper. In fiscal year 2019, we repaid $7.9 billion of long-term debt primarily through the use of the net proceeds from the Euro-debt issuance. In fiscal year 2018, we repaid $7.4 billion of long-term debt, which was not funded through the issuance of long-term debt.

The $8.7 billion increase in net cash used in fiscal year 2018 as compared to fiscal year 2017 was primarily attributable to long-term debt repayments of $7.4 billion, the issuance of $2.0 billion of Senior Notes in fiscal year 2017, and a reduction of commercial paper borrowings in fiscal year 2018 as compared to fiscal year 2017, partially offset by a decrease in share repurchases of $1.4 billion.

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Free Cash Flow

Free cash flow, a non-GAAP financial measure, is calculated by subtracting additions to property, plant, and equipment from net cash provided by operating activities. Management uses this non-GAAP financial measure, in addition to U.S. GAAP financial measures, to evaluate our operating results. Free cash flow should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with U.S. GAAP. Reconciliations between net cash provided by operating activities (the most comparable U.S. GAAP measure) and free cash flow are as follows:

	Fiscal Year
(in millions)	2019			2018			2017
Net cash provided by operating activities	$	7,007		$	4,684		$	6,880
Additions to property, plant, and equipment	(1,134		)	(1,068		)	(1,254		)
Free cash flow	$	5,873		$	3,616		$	5,626

Debt and Capital

Our capital structure consists of equity and interest-bearing debt. We use a combination of bank borrowings and commercial paper issuances to fund our short-term financing needs. Current debt, including the current portion of our long-term debt and capital lease obligations, at April 26, 2019 was $838 million as compared to $2.1 billion at April 27, 2018. Long-term debt at April 26, 2019 was $24.5 billion as compared to $23.7 billion at April 27, 2018. We utilize unsecured senior debt obligations to meet our long-term financing needs. From time to time, we may repurchase our outstanding debt obligations in the open market or through privately negotiated transactions.

Total debt at April 26, 2019 was $25.3 billion, as compared to $25.8 billion at April 27, 2018. The decrease in total debt was primarily driven by the reduction in our commercial paper borrowings of $698 million, partially offset by the net impact of the issuance, cash tender offer, early redemptions, and repayment described below.

In March 2019, Medtronic Global Holdings S.C.A. (Medtronic Luxco) issued six tranches of Euro-denominated senior notes with an aggregate principal of €7.0 billion, with maturities ranging from fiscal year 2021 to fiscal year 2039, resulting in cash proceeds of approximately $7.8 billion, net of discounts and issuance costs. We used the net proceeds of the offering to fund the previously announced cash tender offers and early redemption, described below. The Euro-denominated debt is designated as a net investment hedge of certain of our European operations.

We completed the cash tender offer and early redemption of $6.4 billion of Medtronic Inc. and CIFSA senior notes for $6.9 billion of total consideration in March 2019. We recognized a loss on debt extinguishment of $485 million, which primarily included cash premiums and accelerated amortization of deferred financing costs and debt discounts and premiums. The loss on debt extinguishment was recognized in interest expense in the consolidated statements of income. Also in March 2019, we repaid our 1.700 percent two-year 2017 senior notes, including interest, for $1.0 billion.

For additional information on the issuance of these senior notes and the subsequent cash tender offer and early redemption, refer to Note 7 to the consolidated financial statements in "Item 8. Financial Statements and Supplementary Data" in this Annual Report on Form 10-K. For additional information on the Euro-denominated debt designated as a net investment hedge, refer to Note 8 to the consolidated financial statements in "Item 8. Financial Statements and Supplementary Data" in this Annual Report on Form 10-K.

During fiscal year 2018, we repaid our senior unsecured term loan, including accrued interest, for $3.0 billion, our 6.000 percent ten-year 2008 CIFSA senior notes, including accrued interest, for $1.2 billion, our 3.500 percent seven-year 2010 HTWR senior notes, including interest, for $43 million, our 1.500 percent three-year 2015 senior notes, including accrued interest, for $1.0 billion, our 1.375 percent five-year 2013 senior notes, including accrued interest, for $1.0 billion, our 4.450 percent ten-year 2010 senior notes, including accrued interest and early redemption premium, for $795 million, and our 5.600 percent ten-year 2009 senior notes, including accrued interest and early redemption premium, for $413 million.

We maintain a commercial paper program for short-term financing, which allows us to issue unsecured commercial paper notes on a private placement basis up to a maximum aggregate amount outstanding at any time of $3.5 billion. At April 26, 2019, we had no commercial paper outstanding, as compared to $698 million outstanding at April 27, 2018. During fiscal years 2019 and 2018, the weighted average original maturity of the commercial paper outstanding was approximately 27 and 28 days, respectively, and the weighted average interest rate was 2.12 percent and 1.46 percent, respectively. The issuance of commercial paper reduces the amount of credit available under our existing line of credit, as explained below.

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We also have a $3.5 billion five-year syndicated credit facility (Credit Facility) which was amended and restated in December 2018, and now expires in December 2023. The Credit Facility provides backup funding for the commercial paper program and may also be used for general corporate purposes. The Credit Facility provides us with the ability to increase our borrowing capacity by an additional $1.0 billion at any time during the term of the agreement. At each anniversary date of the Credit Facility, but not more than twice prior to the maturity date, we could also request a one-year extension of the maturity date. At April 26, 2019 and April 27, 2018, no amounts were outstanding on the committed line of credit.

Interest rates on advances of our Credit Facility are determined by a pricing matrix, based on our long-term debt ratings assigned by S&P and Moody’s. For additional information on our credit ratings status by S&P and Moody's, refer to the "Liquidity" section of this Management's Discussion and Analysis. Facility fees are payable on the Credit Facility and are determined in the same manner as the interest rates. The agreements also contain customary covenants, all of which we were in compliance with at April 26, 2019.

We repurchase our ordinary shares from time to time as part of our focus on returning value to our shareholders. In June 2017, our Board of Directors authorized the expenditure of up to $5.0 billion for new share repurchases. In March 2019, our Board of Directors authorized an incremental $6.0 billion for repurchase of our ordinary shares. There is no specific time period associated with these repurchase authorizations. During fiscal years 2019 and 2018, we repurchased a total of 31 million and 25 million shares, respectively, under these programs at an average price of $91.43 and $83.71, respectively. At April 26, 2019, we had approximately $7.2 billion remaining under the share repurchase programs authorized by our Board of Directors.

For more information on credit arrangements, see Note 7 of the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.

Liquidity

Our liquidity sources at April 26, 2019 include $4.4 billion of cash and cash equivalents and $5.5 billion of current investments. Additionally, we maintain a commercial paper program (no commercial paper outstanding at April 26, 2019) and Credit Facility. See discussion above regarding changes in our cash and cash equivalents, commercial paper program and Credit Facility.

Our investments include available-for-sale debt securities, including U.S. and non-U.S. government and agency securities, corporate debt securities, mortgage-backed securities, other asset-backed securities, and auction rate securities. Some of our investments may experience reduced liquidity due to changes in market conditions and investor demand. Our auction rate security holdings continue to experience reduced liquidity due to low investor demand. Although our auction rate securities are currently illiquid and other securities could become illiquid, we believe we could liquidate a substantial amount of our portfolio without incurring a material impairment loss.

For fiscal year 2019, the total other-than-temporary impairment losses on available-for-sale debt securities were not significant. Based on our assessment of the credit quality of the underlying collateral and credit support available to each of the remaining securities in which we are invested, we believe we have recognized all necessary other-than-temporary impairments as we do not have the intent to sell, nor is it more likely than not that we will be required to sell, before recovery of the amortized cost. At April 26, 2019, we have $61 million of gross unrealized losses on our aggregate available-for-sale debt securities of $5.5 billion. If market conditions deteriorate, some of these holdings may experience other-than-temporary impairment in the future, which could adversely affect our financial results. We are required to use estimates and assumptions in our valuation of investments, which requires a high degree of judgment, and therefore, actual results could differ materially from estimates. See Note 6 to the consolidated financial statements in "Item 8. Financial Statements and Supplementary Data" in this Annual Report on Form 10-K for additional information.

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The following table is a summary of our Standard and Poor's Rating Services (S&P) and Moody's Investors Service (Moody's) long-term debt ratings and short-term debt ratings:

	Agency Rating (1)
	April 26, 2019	April 27, 2018
Standard & Poor's Ratings Services
Long-term debt	A	A
Short-term debt	A-1	A-1
Moody's Investors Service
Long-term debt	A3	A3
Short-term debt	P-2	P-2

(1) Agency ratings are subject to change, and there is no assurance that an agency will continue to provide ratings and/or maintain its current ratings. A security rating is not a recommendation to buy, sell or hold securities, and may be subject to revision or withdrawal at any time by the rating agency, and each rating should be evaluated independently of any other rating.

S&P and Moody's long-term debt ratings and short-term debt ratings at April 26, 2019 were unchanged as compared to the ratings at April 27, 2018. We do not expect the S&P and Moody's ratings to have a significant impact on our liquidity or future flexibility to access additional liquidity given our balance sheet and Credit Facility and related commercial paper program.

We have future contractual obligations and other minimum commercial commitments that are entered into in the normal course of business. We believe our off-balance sheet arrangements do not have a material current or anticipated future effect on our consolidated earnings, financial position, and/or cash flows. Refer to the "Off-Balance Sheet Arrangements and Long-Term Contractual Obligations" section of this Management's Discussion and Analysis for more information on these obligations and commitments.

Note 19 to the consolidated financial statements in "Item 8. Financial Statements and Supplementary Data" in this Annual Report on Form 10-K provides information regarding amounts we have accrued related to legal matters. In accordance with U.S. GAAP, we record a liability in our consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. Actual settlements may be different than estimated and could have a material effect on our consolidated earnings, financial position, and/or cash flows.

We record tax liabilities in our consolidated financial statements for amounts that we expect to repatriate from subsidiaries (to the extent the repatriation would be subject to tax); however, no tax liabilities are recorded for amounts that we consider to be permanently reinvested. We have removed our permanently reinvested assertion on the undistributed earnings of certain foreign subsidiaries with a U.S. parent which were subject to the transition tax. We removed the assertion for all earnings of such subsidiaries through April 27, 2018 and reasserted for earnings generated for subsequent fiscal years. We expect to have access to the majority of our cash flows in the future. In addition, we continue to evaluate our legal entity structure supporting our business operations, and to the extent such evaluation results in a change to our overall business structure, we may be required to accrue for additional tax obligations.

We believe our balance sheet and liquidity provide us with flexibility, and that our cash, cash equivalents, and current investments, as well as our Credit Facility and related commercial paper program, will satisfy our foreseeable operating needs for at least the next 12 months. We regularly review our capital needs and consider various investing and financing alternatives to support our requirements. 

OFF-BALANCE SHEET ARRANGEMENTS AND LONG-TERM CONTRACTUAL OBLIGATIONS

In the normal course of business, we periodically enter into agreements that require us to indemnify customers or suppliers for specific risks, such as claims for injury or property damage arising as a result of our products or the negligence of our personnel or claims alleging that our products infringe third-party patents or other intellectual property. Our maximum exposure under these indemnification provisions is unable to be estimated, and we have not accrued any liabilities within our consolidated financial statements or included any indemnification provisions in the table below. Historically, we have not experienced significant losses on these types of indemnification agreements.

50

Presented below is a summary of our off-balance sheet contractual obligations and other minimum commercial commitments at April 26, 2019, as well as long-term contractual obligations reflected in the balance sheet at April 26, 2019.

	Maturity by Fiscal Year
(in millions)	Total		2020		2021		2022		2023		2024		Thereafter
Contractual obligations related to off-balance sheet arrangements:
Operating leases	$	652	$	216	$	157	$	103	$	61	$	34	$	81
Commitments to fund minority investments, milestone payments, and royalty obligations(1)	296		86		117		47		7		9		30
Interest payments(2)	8,384		723		708		688		579		545		5,141
Other(3)	790		315		246		54		40		34		101
Contractual obligations related to off-balance sheet arrangements subtotal	$	10,122	$	1,340	$	1,228	$	892	$	687	$	622	$	5,353
Contractual obligations reflected in the balance sheet:
Debt obligations(4)	$	25,374	$	832	$	2,744	$	3,255	$	2,861	$	1,160	$	14,522
Capital leases	13		6		2		1		1		1		2
Contingent consideration(5)	222		81		129		8		1		1		2
Tax obligations(6)	2,024		176		176		176		176		330		990
Contractual obligations reflected in the balance sheet subtotal(7)	27,633		1,095		3,051		3,440		3,039		1,492		15,516
Total contractual obligations	$	37,755	$	2,435	$	4,279	$	4,332	$	3,726	$	2,114	$	20,869

(1) Includes commitments related to the funding of equity method or other investments, estimated milestone payments, and royalty obligations. While it is not certain if and/or when payments will be made, the maturity dates included in the table reflect our best estimates.

(2) Includes the contractual interest payments on our outstanding debt and excludes the impacts of debt premium and discount amortization and interest rate swap agreements. See Note 7 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K for additional information on our debt agreements.

(3) Includes inventory purchase commitments and research and development arrangements which are legally binding and specify minimum purchase quantities or spending amounts. These purchase commitments do not exceed our projected requirements and are in the normal course of business. Excludes open purchase orders with a remaining term of less than one year.

(4) Includes the current and non-current portion of our Senior Notes and bank borrowings. Excludes debt premium and discount, the fair value impact of outstanding interest rate swap agreements, unamortized gains from terminated interest rate swap agreements, and commercial paper. See Notes 7 and 8 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K for additional information on our debt agreements and interest rate swap agreements, respectively.

(5) Includes the fair value of our current and non-current portions of contingent consideration. While it is not certain if and/or when payments will be made, the maturity dates included in this table reflect our best estimates.

(6) Represents the tax obligations associated with the transition tax that resulted from U.S. Tax Reform. The transition tax will be paid over an eight-year period and will not accrue interest. See Note 14 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K for further information.

(7) Excludes defined benefit plan obligations, guarantee obligations, uncertain tax positions, non-current tax liabilities, and litigation settlements for which we cannot make a reliable estimate of the period of cash settlement. For further information, see Notes 14, 16, and 19 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K for further information.

51

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

CURRENCY EXCHANGE RATE RISK

Due to the global nature of our operations, we are exposed to currency exchange rate changes which may cause fluctuations in earnings and cash flows. We use operational and economic hedges, as well as currency exchange rate derivative instruments, to manage the impact of currency exchange rate fluctuations. In order to minimize earnings and cash flow volatility resulting from currency exchange rate fluctuations, we enter into derivative instruments, principally forward currency exchange rate contracts. These contracts are designed to hedge anticipated transactions in other currencies and changes in the value of specific assets and liabilities. At inception of the contract, the derivative instrument is designated as either a freestanding derivative or a cash flow hedge. The primary currencies of our derivative instruments are the Euro, Japanese Yen, and British Pound. Fluctuations in the currency exchange rates of currency exposures that are unhedged, such as in certain emerging markets, may result in future earnings and cash flow volatility. We do not enter into currency exchange rate derivative instruments for speculative purposes.

The gross notional amount of all currency exchange rate derivative instruments outstanding at April 26, 2019 and April 27, 2018 was $11.1 billion and $11.5 billion, respectively. At April 26, 2019, these contracts were in a net unrealized gain position of $322 million. A sensitivity analysis of changes in the fair value of all currency exchange rate derivative contracts at April 26, 2019 indicates that, if the U.S. dollar uniformly strengthened/weakened by 10 percent against all currencies, the fair value of these contracts would increase/decrease by approximately $916 million. Any gains and losses on the fair value of derivative contracts would generally be offset by gains and losses on the underlying transactions. These offsetting gains and losses are not reflected in the above analysis.

In the second quarter of fiscal year 2019, we began accounting for our operations in Argentina as highly inflationary, as the prior three-year cumulative inflation rate exceeded 100 percent. The change did not have a material impact on our results for fiscal year 2019.

INTEREST RATE RISK

We are subject to interest rate risk on our investments and our borrowings. We manage interest rate risk in the aggregate, while focusing on our immediate and intermediate liquidity needs. Our debt portfolio at April 26, 2019 was comprised of debt predominately denominated in U.S. dollars and the Euro, of which substantially all is fixed rate debt. We are also exposed to interest rate changes affecting our investments in interest rate sensitive instruments, which include our marketable debt securities, fixed-to-floating interest rate swap agreements, and forward starting interest rate swap agreements.

A sensitivity analysis of the impact on our interest rate-sensitive financial instruments of a hypothetical 10 basis point change in interest rates, as compared to interest rates at April 26, 2019, indicates that the fair value of these instruments would correspondingly change by $49 million.

For a discussion of current market conditions and the impact on our financial condition and results of operations, please see the “Liquidity” section of the Management's Discussion and Analysis in "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" in this Annual Report on Form 10-K. For additional discussion of market risk, see Notes 6 and 8 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.

52

Item 8. Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Medtronic plc:

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Medtronic plc and its subsidiaries (the “Company”) as of April 26, 2019 and April 27, 2018, and the related consolidated statements of income, comprehensive income, equity and cash flows for each of the three years in the period ended April 26, 2019, including the related notes and schedule of valuation and qualifying accounts for each of the three years in the period ended April 26, 2019 appearing under Item 15(a)(1) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of April 26, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of April 26, 2019 and April 27, 2018, and the results of its operations and its cash flows for each of the three years in the period ended April 26, 2019 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of April 26, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A . Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

53

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ PricewaterhouseCoopers LLP

Minneapolis, Minnesota

June 21, 2019

We have served as the Company’s auditor since 1963.  

54

Medtronic plc

Consolidated Statements of Income

	Fiscal Year
(in millions, except per share data)	2019			2018			2017
Net sales	$	30,557		$	29,953		$	29,710
Costs and expenses:
Cost of products sold	9,155			9,067			9,294
Research and development expense	2,330			2,256			2,193
Selling, general, and administrative expense	10,418			10,238			10,018
Amortization of intangible assets	1,764			1,823			1,980
Restructuring charges, net	198			30			303
Certain litigation charges	166			61			300
Gain on sale of businesses	—			(697		)	—
Other operating expense, net	258			535			239
Operating profit	6,268			6,640			5,383
Other non-operating income, net	(373		)	(181		)	(313		)
Interest expense	1,444			1,146			1,094
Income before income taxes	5,197			5,675			4,602
Income tax provision	547			2,580			578
Net income	4,650			3,095			4,024
Net (income) loss attributable to noncontrolling interests	(19		)	9			4
Net income attributable to Medtronic	$	4,631		$	3,104		$	4,028
Basic earnings per share	$	3.44		$	2.29		$	2.92
Diluted earnings per share	$	3.41		$	2.27		$	2.89
Basic weighted average shares outstanding	1,346.4			1,356.7			1,378.9
Diluted weighted average shares outstanding	1,357.5			1,368.2			1,391.4

The accompanying notes are an integral part of these consolidated financial statements.

55

Medtronic plc

Consolidated Statements of Comprehensive Income

	Fiscal Year
(in millions)	2019			2018			2017
Net income	$	4,650		$	3,095		$	4,024
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on investment securities	102			(103		)	38
Translation adjustment	(1,375		)	1,184			(977		)
Net investment hedge	88			—			—
Net change in retirement obligations	(191		)	167			68
Unrealized gain (loss) on cash flow hedges	401			(218		)	127
Other comprehensive (loss) income	(975		)	1,030			(744		)
Comprehensive income including noncontrolling interests	3,675			4,125			3,280
Comprehensive (income) loss attributable to noncontrolling interests	(16		)	9			3
Comprehensive income attributable to Medtronic	$	3,659		$	4,134		$	3,283

The accompanying notes are an integral part of these consolidated financial statements.

56

Medtronic plc

Consolidated Balance Sheets

(in millions)	April 26, 2019			April 27, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	4,393		$	3,669
Investments	5,455			7,558
Accounts receivable, less allowances of $190 and $193, respectively	6,222			5,987
Inventories, net	3,753			3,579
Other current assets	2,144			2,187
Total current assets	21,967			22,980
Property, plant, and equipment, net	4,675			4,604
Goodwill	39,959			39,543
Other intangible assets, net	20,560			21,723
Tax assets	1,519			1,465
Other assets	1,014			1,078
Total assets	$	89,694		$	91,393
LIABILITIES AND EQUITY
Current liabilities:
Current debt obligations	$	838		$	2,058
Accounts payable	1,953			1,628
Accrued compensation	2,189			1,988
Accrued income taxes	567			979
Other accrued expenses	2,925			3,431
Total current liabilities	8,472			10,084
Long-term debt	24,486			23,699
Accrued compensation and retirement benefits	1,651			1,425
Accrued income taxes	2,838			3,051
Deferred tax liabilities	1,278			1,423
Other liabilities	757			889
Total liabilities	39,482			40,571
Commitments and contingencies (Notes 3, 17, and 19)
Shareholders’ equity:
Ordinary shares— par value $0.0001, 2.6 billion shares authorized, 1,340,697,595 and 1,354,218,154 shares issued and outstanding, respectively	—			—
Additional paid-in capital	26,532			28,127
Retained earnings	26,270			24,379
Accumulated other comprehensive loss	(2,711		)	(1,786		)
Total shareholders’ equity	50,091			50,720
Noncontrolling interests	121			102
Total equity	50,212			50,822
Total liabilities and equity	$	89,694		$	91,393

The accompanying notes are an integral part of these consolidated financial statements.

57

Medtronic plc

Consolidated Statements of Equity

	Ordinary Shares				Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total  Shareholders’  Equity			Noncontrolling Interests			Total Equity
(in millions)	Number		Par Value
April 29, 2016	1,399		$	—	$	32,227		$	21,618		$	(1,868	)	$	51,977		$	—		$	51,977
Net income (loss)	—		—		—			4,028			—			4,028			(4		)	4,024
Other comprehensive (loss) income	—		—		—			—			(745		)	(745		)	1			(744		)
Dividends to shareholders ($1.72 per ordinary share)	—		—		—			(2,376		)	—			(2,376		)	—			(2,376		)
Issuance of shares under stock purchase and award plans	13		—		428			—			—			428			—			428
Repurchase of ordinary shares	(43	)	—		(3,544		)	—			—			(3,544		)	—			(3,544		)
Tax benefit from exercise of stock-based awards	—		—		92			—			—			92			—			92
Stock-based compensation			—		348			—			—			348			—			348
Changes to noncontrolling ownership interests	—		—		—			—			—			—			125			125
April 28, 2017	1,369		$	—	$	29,551		$	23,270		$	(2,613	)	$	50,208		$	122		$	50,330
Net income (loss)	—		—		—			3,104			—			3,104			(9		)	3,095
Other comprehensive income	—		—		—			—			1,030			1,030			—			1,030
Dividends to shareholders ($1.84 per ordinary share)	—		—		—			(2,494		)	—			(2,494		)	—			(2,494		)
Issuance of shares under stock purchase and award plans	10		—		329			—			—			329			—			329
Repurchase of ordinary shares	(25	)	—		(2,097		)	—			—			(2,097		)	—			(2,097		)
Stock-based compensation	—		—		344			—			—			344			—			344
Changes to noncontrolling ownership interests	—		—		—			—			—			—			(11		)	(11		)
Cumulative effect of change in accounting principle(1)	—		—		—			499			(203		)	296			—			296
April 27, 2018	1,354		$	—	$	28,127		$	24,379		$	(1,786	)	$	50,720		$	102		$	50,822
Net income	—		—		—			4,631			—			4,631			19			4,650
Other comprehensive loss	—		—		—			—			(972		)	(972		)	(3		)	(975		)
Dividends to shareholders ($2.00 per ordinary share)	—		—		—			(2,693		)	—			(2,693		)	—			(2,693		)
Issuance of shares under stock purchase and award plans	18		—		923			—			—			923			—			923
Repurchase of ordinary shares	(31	)	—		(2,808		)	—			—			(2,808		)	—			(2,808		)
Stock-based compensation	—		—		290			—			—			290			—			290
Changes to noncontrolling ownership interests	—		—		—			—			—			—			3			3
Cumulative effect of change in accounting principle(2)	—		—		—			(47		)	47			—			—			—
April 26, 2019	1,341		$	—	$	26,532		$	26,270		$	(2,711	)	$	50,091		$	121		$	50,212

(1) The cumulative effect of change in accounting principle in fiscal year 2018 resulted from the adoption of accounting guidance that requires the tax effect of intra-entity transactions, other than sales of inventory, to be recognized when the transaction occurs, and accounting guidance which permitted reclassification of stranded tax effects resulting from the enactment of comprehensive U.S. tax legislation from accumulated other comprehensive loss to retained earnings.

(2) See Note 1 to the consolidated financial statements for discussion regarding the adoption of accounting standards during fiscal year 2019.

The accompanying notes are an integral part of these consolidated financial statements.

58

Medtronic plc

Consolidated Statements of Cash Flows

	Fiscal Year
(in millions)	2019			2018			2017
Operating Activities:
Net income	$	4,650		$	3,095		$	4,024
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,659			2,644			2,917
Provision for doubtful accounts	78			52			39
Deferred income taxes	(304		)	(919		)	(459		)
Stock-based compensation	290			344			348
Loss on debt extinguishment	457			38			—
Gain on sale of businesses	—			(697		)	—
Investment loss	—			227			—
Other, net	257			73			(128		)
Change in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable, net	(581		)	(275		)	(75		)
Inventories, net	(274		)	(192		)	(227		)
Accounts payable and accrued liabilities	399			65			356
Other operating assets and liabilities	(624		)	229			85
Net cash provided by operating activities	7,007			4,684			6,880
Investing Activities:
Acquisitions, net of cash acquired	(1,827		)	(137		)	(1,324		)
Proceeds from sale of businesses	—			6,058			—
Additions to property, plant, and equipment	(1,134		)	(1,068		)	(1,254		)
Purchases of investments	(2,532		)	(3,200		)	(4,371		)
Sales and maturities of investments	4,683			4,227			5,356
Other investing activities, net	36			(22		)	22
Net cash (used in) provided by investing activities	(774		)	5,858			(1,571		)
Financing Activities:
Change in current debt obligations, net	(713		)	(249		)	906
Issuance of long-term debt	7,794			21			2,140
Payments on long-term debt	(7,948		)	(7,370		)	(863		)
Dividends to shareholders	(2,693		)	(2,494		)	(2,376		)
Issuance of ordinary shares	992			403			428
Repurchase of ordinary shares	(2,877		)	(2,171		)	(3,544		)
Other financing activities	14			(94		)	26
Net cash used in financing activities	(5,431		)	(11,954		)	(3,283		)
Effect of exchange rate changes on cash and cash equivalents	(78		)	114			65
Net change in cash and cash equivalents	724			(1,298		)	2,091
Cash and cash equivalents at beginning of period	3,669			4,967			2,876
Cash and cash equivalents at end of period	$	4,393		$	3,669		$	4,967
Supplemental Cash Flow Information
Cash paid for:
Income taxes	$	1,558		$	2,542		$	1,029
Interest	973			1,147			1,134

The accompanying notes are an integral part of these consolidated financial statements.

59

Medtronic plc

Notes to Consolidated Financial Statements

1. Summary of Significant Accounting Policies

Nature of Operations Medtronic plc (Medtronic or the Company) is among the world's largest medical technology, services, and solutions companies – alleviating pain, restoring health, and extending life for millions of people around the world. The Company provides innovative products and therapies to serve hospitals, physicians, clinicians, and patients. Medtronic was founded in 1949 and is headquartered in Dublin, Ireland.

Principles of Consolidation The consolidated financial statements include the accounts of Medtronic plc, its wholly-owned subsidiaries, entities for which the Company has a controlling financial interest, and variable interest entities for which the Company is the primary beneficiary. Intercompany transactions and balances have been fully eliminated in consolidation. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. For the purpose of providing more concise consolidated statements of income, amounts previously reported in acquisition-related items were reclassified to selling, general, and administrative expense and other operating expense, net; amounts previously reported in divestiture-related items were reclassified to selling, general, and administrative expense; amounts previously reported in special charge were reclassified to other operating expense, net, and amounts previously reported in investment loss and interest income were reclassified to other non-operating income, net.

Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States (U.S.) (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used when accounting for items such as income taxes, contingencies, intangible asset, and liability valuations. Actual results may or may not differ from those estimates.

Fiscal Year-End The Company utilizes a 52/53-week fiscal year, ending the last Friday in April, for the presentation of its consolidated financial statements and related notes thereto at April 26, 2019 and April 27, 2018 and for each of the three fiscal years ended April 26, 2019 (fiscal year 2019), April 27, 2018 (fiscal year 2018), and April 28, 2017 (fiscal year 2017). Fiscal years 2019, 2018, 2017 were 52-week years.

Cash Equivalents The Company considers highly liquid investments with maturities of three months or less from the date of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value.

Investments The Company invests in marketable debt and equity securities, investments that do not have readily determinable fair values, and investments accounted for under the equity method.

Marketable debt securities are classified and accounted for as available-for-sale. These investments are recorded at fair value in the consolidated balance sheets. The change in fair value for available-for-sale securities is recorded, net of taxes, as a component of accumulated other comprehensive loss on the consolidated balance sheets. The Company determines the appropriate classification of its investments in marketable debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. The classification of marketable debt securities as current or long-term is based on the nature of the securities and the availability for use in current operations consistent with the Company's management of its capital structure and liquidity.

Certain of the Company’s investments in marketable equity securities and other securities are long-term, strategic investments in companies that are in various stages of development and are included in other assets on the consolidated balance sheets. Marketable equity securities are recorded at fair value in the consolidated balance sheets. The change in fair value of marketable equity securities is recognized within other non-operating income, net in the consolidated statements of income. Investments without readily determinable fair values that do not qualify for the practical expedient to estimate fair value using the net asset value per share or its equivalent are accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investments of the issuer. This election is made for each investment separately and is reassessed at each reporting period as to whether the investment continues to qualify for this election. At each reporting period, the Company makes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. Equity securities accounted for under the equity method are initially recorded at the amount of the Company’s investment and are adjusted each period for the Company’s share of the investee’s income or loss and dividends paid. Securities accounted for under the equity method are reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company’s investment may not be recoverable.

Accounts Receivable and Allowance for Doubtful Accounts The Company grants credit to customers in the normal course of business and maintains an allowance for doubtful accounts for potential credit losses. When evaluating allowances for doubtful accounts, the Company considers various factors, including historical experience and customer-specific information. Uncollectible accounts are written-off against the allowance when it is deemed that a customer account is uncollectible.

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Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. The Company reduces the carrying value of inventories for items that are potentially excess, obsolete, or slow-moving based on changes in customer demand, technology developments, or other economic factors.

Property, Plant, and Equipment Property, plant, and equipment is stated at cost. Additions and improvements that extend the lives of the assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred. The Company assesses property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of property, plant, and equipment asset groupings may not be recoverable. The Company utilizes the straight-line method of depreciation over the estimated useful lives of the various assets. The cost of interest that is incurred in connection with ongoing construction projects is capitalized using a weighted average interest rate. These costs are included in property, plant, and equipment and amortized over the useful life of the related asset. Upon retirement or disposal of property, plant, and equipment, the costs and related amounts of accumulated depreciation or amortization are eliminated from the asset and accumulated depreciation accounts. The difference, if any, between the net asset value and the proceeds, is recognized in earnings.

Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the estimated fair value of net assets of acquired businesses. In accordance with U.S. GAAP, goodwill is not amortized. The Company assesses goodwill for impairment annually in the third quarter of the fiscal year and whenever an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is performed at a reporting unit level. There were no changes in reporting units during fiscal year 2019. The test for impairment of goodwill requires the Company to make several estimates about fair value, most of which are based on projected future cash flows. The Company calculates the excess of each reporting unit's fair value over its carrying amount, including goodwill, utilizing a discounted cash flow analysis. An impairment loss is recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair value of the reporting unit.

Intangible assets include patents, trademarks, tradenames, customer relationships, purchased technology, and in-process research and development (IPR&D). Intangible assets with a definite life are amortized on a straight-line basis with estimated useful lives typically ranging from three to 20 years. Amortization is recognized within amortization of intangible assets in the consolidated statements of income. Intangible assets with a definite life are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset (asset group) may not be recoverable. When events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable, the Company calculates the excess of an intangible asset's carrying value over its undiscounted future cash flows. If the carrying value is not recoverable, an impairment loss is recognized based on the amount by which the carrying value exceeds the fair value. The inputs used in the fair value analysis fall within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value.

Acquired IPR&D represents the fair value assigned to those research and development projects that were acquired in a business combination for which the related products have not received regulatory approval and have no alternative future use. IPR&D is capitalized at its fair value as an indefinite-lived intangible asset, and any development costs incurred after the acquisition are expensed as incurred. The fair value of IPR&D is determined by estimating the future cash flows of each project and discounting the net cash flows back to their present values. Upon achieving regulatory approval or commercial viability for the related product, the indefinite-lived intangible asset is accounted for as a definite-lived asset and is amortized on a straight-line basis over the estimated useful life. If the project is not completed or is terminated or abandoned, the Company may have an impairment related to the IPR&D which is charged to expense. Indefinite-lived intangible assets are tested for impairment annually in the third quarter of the fiscal year and whenever events or changes in circumstances indicate that the carrying amount may be impaired. Impairment is calculated as the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted future cash flow analysis. IPR&D acquired outside of a business combination is expensed immediately.

Contingent Consideration Certain of the Company’s business combinations involve potential payment of future consideration that is contingent upon the achievement of certain product development milestones and/or contingent on the acquired business reaching certain performance milestones. The Company records contingent consideration at fair value at the date of acquisition based on the consideration expected to be transferred, estimated as the probability-weighted future cash flows, discounted back to present value. The fair value of contingent consideration is measured using projected payment dates, discount rates, probabilities of payment, and projected revenues (for revenue-based considerations). Projected revenues are based on the Company’s most recent internal operational budgets and long-range strategic plans. The discount rate used is determined at the time of measurement in accordance with accepted valuation methodologies. Changes in projected revenues, probabilities of payment, discount rates, and projected payment dates may result in adjustments to the fair value measurements. Contingent consideration is remeasured each reporting period using Level 3 inputs, and the change in fair value, including accretion for the passage of time, is recognized as income or expense within other operating expense, net in the consolidated statements of income. Contingent consideration payments made soon after the acquisition date are classified as investing activities in the consolidated statements of cash flows. Contingent consideration payments not made soon after the acquisition date that are related to the acquisition date fair value are

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reported as financing activities in the consolidated statements of cash flows, and amounts paid in excess of the original acquisition date fair value are reported as operating activities in the consolidated statements of cash flows.

Self-Insurance The Company self-insures the majority of its insurable risks, including medical and dental costs, disability coverage, physical loss to property, business interruptions, workers’ compensation, comprehensive general, and product liability. Insurance coverage is obtained for risks required to be insured by law or contract. The Company uses claims data and historical experience, as applicable, to estimate liabilities associated with the exposures that the Company has self-insured.

Retirement Benefit Plan Assumptions The Company sponsors various retirement benefit plans, including defined benefit pension plans, post-retirement medical plans, defined contribution savings plans, and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. See Note 16 for assumptions used in determining pension and post-retirement benefit costs and liabilities.

Derivatives The Company recognizes all derivative financial instruments in its consolidated financial statements at fair value in accordance with authoritative guidance on derivatives and hedging, and presents assets and liabilities associated with derivative financial instruments on a gross basis in the consolidated financial statements. For derivative instruments that are designated and qualify as hedging instruments, the hedging instrument must be designated, based upon the exposure being hedged, as a fair value hedge or a cash flow hedge. See Note 8 for more information on the Company's derivative instruments and hedging programs.

Fair Value Measurements The Company follows the authoritative guidance on fair value measurements and disclosures with respect to assets and liabilities that are measured at fair value on both a recurring and nonrecurring basis. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability, based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and financial liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels defined as follows:

• Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities.

• Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.

• Level 3 - Inputs are unobservable for the asset or liability.

Financial assets that are classified as Level 1 securities include highly liquid government bonds within U.S. government and agency securities and marketable equity securities for which quoted market prices are available. In addition, the Company classifies currency forward contracts as Level 1 since they are valued using quoted market prices in active markets which have identical assets or liabilities.

The valuation for most fixed maturity securities are classified as Level 2. Financial assets that are classified as Level 2 include corporate debt securities, government and agency securities, other asset-backed securities, debt funds, and mortgage-backed securities whose value is determined using inputs that are observable in the market or may be derived principally from, or corroborated by, observable market data such as pricing for similar securities, recently executed transactions, cash flow models with yield curves, and benchmark securities. In addition, interest rate swaps and total return swaps are included in Level 2 as the Company uses inputs other than quoted prices that are observable for the asset. The Level 2 derivative instruments are primarily valued using standard calculations and models that use readily observable market data as their basis.

Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies, or similar techniques, and at least one significant model assumption or input is unobservable. Financial assets that are classified as Level 3 include certain investment securities for which there is limited market activity such that the determination of fair value requires significant judgment or estimation, certain corporate debt securities and auction rate securities. With the exception of auction rate securities, these securities are valued using third-party pricing sources that incorporate transaction details such as contractual terms, maturity, timing, and amount of expected future cash flows, as well as assumptions about liquidity and credit valuation adjustments by market participants. The fair value of auction rate securities is estimated by the Company using a discounted cash flow model, which incorporates significant unobservable inputs. The significant unobservable inputs used in the

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fair value measurement of the Company’s auction rate securities are years to principal recovery and the illiquidity premium that is incorporated into the discount rate.

Certain investments for which the fair value is measured using the net asset value per share (or its equivalent) practical expedient are excluded from the fair value hierarchy. Financial assets for which the fair value is measured using the net asset value per share practical expedient include certain debt funds, equity and fixed income commingled trusts, and registered investment companies.

Revenue Recognition The Company sells its products through direct sales representatives and independent distributors. Additionally, a portion of the Company's revenue is generated from consignment inventory maintained at hospitals. The Company recognizes revenue when control is transferred to the customer. For products sold through direct sales representatives and independent distributors, control is transferred upon shipment or upon delivery, based on the contract terms and legal requirements. For consignment inventory, control is transferred when the product is used or implanted. Payment terms vary depending on the country of sale, type of customer, and type of product.

If a contract contains more than one performance obligation, the transaction price is allocated to each performance obligation based on relative standalone selling price. Shipping and handling is treated as a fulfillment activity rather than a promised service, and therefore, is not considered a performance obligation. Taxes assessed by a governmental authority that are both imposed on, and concurrent with, a specific revenue producing transaction and collected by the Company from customers (for example, sales, use, value added, and some excise taxes) are not included in revenue. For contracts that have an original duration of one year or less, the Company uses the practical expedient applicable to such contracts and does not adjust the transaction price for the time value of money.

The amount of revenue recognized reflects sales rebates and returns, which are estimated based on sales terms, historical experience, and trend analysis. In estimating rebates, the Company considers the lag time between the point of sale and the payment of the rebate claim, the stated rebate rates, and other relevant information. The Company records adjustments to rebates and returns reserves as increases or decreases of revenue.

The Company offers warranties on various products. For standard, assurance-type warranties, the Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. The amount of the reserve is equal to the net costs to repair or otherwise satisfy the obligation. The Company includes the warranty obligation in other accrued expenses and other liabilities in the consolidated balance sheets. For extended, service-type warranties, a portion of the transaction price is allocated to the performance obligation. Warranty obligations at April 26, 2019 and April 27, 2018 were not material.

The Company records a deferred revenue liability if a customer pays consideration before the Company transfers a good or service to the customer. Deferred revenue primarily represents remote monitoring services and equipment maintenance, for which consideration is received at the same time as consideration for the device or equipment. Deferred revenue also includes extended, service-type warranties. Revenue related to remote monitoring services, equipment maintenance, and service-type warranties is recognized over the service period as time elapses.

Remaining performance obligations include deferred revenue and amounts the Company expects to receive for goods and services that have not yet been delivered or provided under existing, noncancellable contracts with minimum purchase commitments, primarily related to consumables for previously sold equipment as well as remote monitoring services and equipment maintenance. For contracts that have an original duration of one year or less, the Company has elected the practical expedient applicable to such contracts and does not disclose the transaction price for remaining performance obligations at the end of each reporting period and when the Company expects to recognize this revenue.

Shipping and Handling Shipping and handling costs incurred to physically move product from the Company's premises to the customer's premises are recognized in selling, general, and administrative expense in the consolidated statements of income and were $350 million, $363 million, and $370 million in fiscal years 2019, 2018, and 2017, respectively. Other shipping and handling costs incurred to store, move, and prepare products for shipment are recognized in cost of products sold in the consolidated statements of income.

Research and Development Research and development costs are expensed when incurred. Research and development costs include costs of other research, engineering, and technical activities to develop a new product or service or make significant improvement to an existing product or manufacturing process. Research and development costs also include pre-approval regulatory and clinical trial expenses.

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Contingencies The Company records a liability in the consolidated financial statements for loss contingencies 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. Insurance recoveries related to potential claims are recognized up to the amount of the recorded liability when coverage is confirmed and the estimated recoveries are probable of payment. These recoveries are not netted against the related liabilities for financial statement presentation.

Income Taxes The Company has deferred taxes that arise as a result of the different treatment of transactions for U.S. GAAP and income tax accounting, known as temporary differences. The Company records the tax effect of these temporary differences as deferred tax assets and deferred tax liabilities. Deferred tax assets generally represent items that may be used as a tax deduction or credit in a tax return in future years for which the Company has already recognized the tax benefit in the consolidated statements of income. The Company establishes valuation allowances for deferred tax assets when the amount of expected future taxable income is not likely to support the use of the deduction or credit. Deferred tax liabilities generally represent tax expense for which payment has been deferred or expense has already been taken as a deduction on the Company’s tax return but has not yet been recognized as an expense in the consolidated statements of income. 

Other Operating Expense, Net Other operating expense, net primarily includes royalty income and expense, Transition Service Agreement income, intangible asset charges, currency transaction and derivative gains and losses, contributions to the Medtronic Foundation, Puerto Rico excise taxes, changes in the fair value of contingent consideration, and charges associated with business exits.

Other Non-Operating Income, Net Other non-operating income, net includes the non-service component of net periodic pension and post-retirement benefit cost, investment gains and losses, and interest income.

Currency Translation Assets and liabilities of non-U.S. dollar functional currency entities are translated to U.S. dollars at period-end exchange rates, and the currency impacts arising from the translation of the assets and liabilities are recorded as a cumulative translation adjustment, a component of accumulated other comprehensive loss, on the consolidated balance sheets. Elements of the consolidated statements of income are translated at the average monthly currency exchange rates in effect during the period. Currency transaction gains and losses are included in other operating expense, net in the consolidated statements of income.

Stock-Based Compensation The Company measures stock-based compensation expense at the grant date based on the fair value of the award and recognizes the compensation expense over the requisite service period, which is generally the vesting period. The amount of stock-based compensation expense recognized during a period is based on the portion of the awards that are expected to vest. The Company estimates pre-vesting forfeitures at the time of grant and revises the estimates in subsequent periods.

New Accounting Standards

Recently Adopted

In May 2014, the Financial Accounting Standards Board (FASB) issued amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue in an amount that reflects the consideration to which an entity expects to be entitled in exchange for the transfer of goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The Company adopted this guidance using the modified retrospective method in the first quarter of fiscal year 2019, and elected to apply the guidance only to contracts that were not completed as of the date of initial application. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In January 2016, the FASB issued guidance which requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The guidance also includes a simplified impairment assessment of equity investments without readily determinable fair values and presentation and disclosure changes. The Company adopted this guidance in the first quarter of fiscal year 2019 on a prospective basis. As a result of the adoption, the Company reclassified $47 million from accumulated other comprehensive loss to the opening balance of retained earnings as of April 28, 2018.

In March 2017, the FASB issued guidance which changes the financial statement presentation requirements for pension and other post-retirement benefit expense. While service cost will continue to be recognized in the same financial statement line items as other current employee compensation costs, the guidance requires all other non-service components of net benefit costs to be

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classified and presented outside of income from operations. The Company adopted this guidance in the first quarter of fiscal year 2019, and the consolidated statements of income were retrospectively adjusted. For fiscal years 2018 and 2017, the Company reclassified $11 million of income and $53 million of expense, respectively, of non-service components of net periodic benefit costs, which were previously presented as a component of operating profit, to other non-operating income, net.

Not Yet Adopted

In February 2016, the FASB issued guidance which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet. The guidance will be adopted using the modified retrospective method by applying the new guidance as of the transition date with a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the period of adoption. The Company will elect the package of practical expedients upon adoption which allows the Company to not reassess whether any expired or existing contracts are or contain leases, the classification of any expired or existing leases or any initial direct costs for existing leases. Further, the Company will make accounting policy elections to not apply the recognition requirements to short-term leases and to account for lease and nonlease components as a single lease component.

This guidance is effective for the Company beginning in the first quarter of fiscal year 2020. As a result of adopting the guidance, the Company expects to record right-of-use assets and lease liabilities for operating leases in an amount of approximately one percent of total assets on the consolidated balance sheet. The Company expects the adoption to have an immaterial impact on the consolidated statements of income and cash flows. The Company will also make additional lease related disclosures in the footnotes to the Company's consolidated financial statements upon adoption.

2. Revenue

The Company's revenues are principally derived from device-based medical therapies and services related to cardiac rhythm disorders, cardiovascular disease, renal disease, neurological disorders and diseases, spinal conditions and musculoskeletal trauma, chronic pain, urological and digestive disorders, ear, nose, and throat conditions, and diabetes conditions as well as advanced and general surgical care products, respiratory and monitoring solutions, and neurological surgery technologies. The Company's primary customers include hospitals, clinics, third-party health care providers, distributors, and other institutions, including governmental health care programs and group purchasing organizations.

The table below illustrates net sales by segment and division for fiscal years 2019, 2018, and 2017:

	Net Sales by Fiscal Year
(in millions)	2019		2018		2017
Cardiac Rhythm & Heart Failure	$	5,849	$	5,947	$	5,649
Coronary & Structural Heart	3,730		3,562		3,113
Aortic, Peripheral & Venous	1,926		1,845		1,736
Cardiac and Vascular Group	11,505		11,354		10,498
Surgical Innovations	5,753		5,537		5,145
Respiratory, Gastrointestinal, & Renal	2,725		3,179		4,774
Minimally Invasive Therapies Group	8,478		8,716		9,919
Spine	2,654		2,668		2,641
Brain Therapies	2,604		2,354		2,098
Specialty Therapies	1,641		1,556		1,491
Pain Therapies	1,284		1,165		1,136
Restorative Therapies Group	8,183		7,743		7,366
Diabetes Group	2,391		2,140		1,927
Total	$	30,557	$	29,953	$	29,710

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The tables below include net sales by market geography and segment for fiscal years 2019, 2018, and 2017:

	U.S.(1)				Non-U.S. Developed Markets(2)				Emerging Markets(3)
(in millions)	Fiscal Year 2019		Fiscal Year 2018		Fiscal Year 2019		Fiscal Year 2018		Fiscal Year 2019		Fiscal Year 2018
Cardiac and Vascular Group	$	5,750	$	5,681	$	3,767	$	3,790	$	1,988	$	1,883
Minimally Invasive Therapies Group	3,630		3,804		3,250		3,378		1,598		1,534
Restorative Therapies Group	5,478		5,164		1,759		1,720		946		859
Diabetes Group	1,336		1,226		855		739		200		175
Total	$	16,194	$	15,875	$	9,631	$	9,627	$	4,732	$	4,451

	U.S.(1)				Non-U.S. Developed Markets(2)				Emerging Markets(3)
(in millions)	Fiscal Year 2018		Fiscal Year 2017		Fiscal Year 2018		Fiscal Year 2017		Fiscal Year 2018		Fiscal Year 2017
Cardiac and Vascular Group	$	5,681	$	5,454	$	3,790	$	3,393	$	1,883	$	1,651
Minimally Invasive Therapies Group	3,804		5,049		3,378		3,479		1,534		1,391
Restorative Therapies Group	5,164		5,012		1,720		1,588		859		766
Diabetes Group	1,226		1,148		739		625		175		154
Total	$	15,875	$	16,663	$	9,627	$	9,085	$	4,451	$	3,962

(1) U.S. includes the United States and U.S. territories.

(2) Non-U.S. developed markets include Japan, Australia, New Zealand, Korea, Canada, and the countries within Western Europe.

(3) Emerging markets include the countries of the Middle East, Africa, Latin America, Eastern Europe, and the countries of Asia that are not included in the non-U.S. developed markets, as defined above.

At April 26, 2019, $764 million of rebates were classified as other accrued expenses and $432 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheets. At April 27, 2018, $614 million of rebates were classified as other accrued expenses and $376 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheets. The Company includes obligations for returns in other accrued expenses in the consolidated balance sheets and the right-of-return asset in other current assets in the consolidated balance sheets. The right-of-return asset and liability at April 26, 2019 and right-of-return liability at April 27, 2018 were not material. There was no right-of-return asset at April 27, 2018 as the liability was recorded net of the asset under previous guidance. During fiscal year 2019, adjustments to rebate and return reserves recognized in revenue that were included in the rebate and return reserves at the beginning of the period were not material.

Deferred Revenue and Remaining Performance Obligations

Deferred revenue at April 26, 2019 and April 27, 2018 was $315 million and $289 million, respectively. At April 26, 2019 and April 27, 2018, $211 million and $196 million was included in other accrued expenses, respectively, and $104 million and $93 million was included in other liabilities, respectively. During the fiscal year ended April 26, 2019, the Company recognized $199 million of revenue that was included in deferred revenue as of April 27, 2018.

At April 26, 2019, the estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied for executed contracts with an original duration of one year or more was approximately $900 million. The Company expects to recognize revenue on the majority of these remaining performance obligations over the next four years.

3. Acquisitions

The Company had acquisitions during fiscal years 2019 and 2018 that were accounted for as business combinations. The assets and liabilities of businesses acquired were recorded and consolidated on the acquisition date at their respective fair values. Goodwill resulting from business combinations is largely attributable to future yet to be defined technologies, new customer relationships, existing workforce of the acquired businesses, and synergies expected to arise after the Company's acquisition of these businesses. The pro forma impact of acquisitions during fiscal years 2019 and 2018 was not significant, either individually or in the aggregate, to the results of the Company. The results of operations of acquired businesses have been included in the Company’s consolidated statements of income since the date each business was acquired.

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Fiscal Year 2019

The acquisition date fair values of the assets acquired and liabilities assumed in fiscal year 2019 were as follows:

(in millions)	Mazor Robotics		EPiX Therapeutics, Inc.		All Other		Total
Cash and cash equivalents	$	109	$	3	$	3	$	115
Investments	52		—		—		52
Accounts receivable	10		—		2		12
Inventory	7		—		27		34
Other current assets	2		1		3		6
Property, plant, and equipment	3		1		29		33
Goodwill	1,197		165		148		1,510
Other intangible assets	399		162		210		771
Tax assets	6		—		7		13
Other assets	1		2		—		3
Total assets acquired	1,786		334		429		2,549
Current liabilities	54		4		45		103
Accrued income taxes	—		—		5		5
Deferred tax liabilities	58		11		—		69
Total liabilities assumed	112		15		50		177
Net assets acquired	$	1,674	$	319	$	379	$	2,372

Mazor Robotics

On December 18, 2018, the Company's Restorative Therapies Group acquired Mazor Robotics (Mazor), a pioneer in the field of robotic guidance systems. The acquisition of Mazor strengthens the Company's position as a global leader in enabling technologies for spine surgery. The Company offers a fully-integrated procedural solution for surgical planning, execution and confirmation by combining the Company's spine implants, navigation, and intra-operative imaging technology with Mazor's robotic-assisted surgery systems. Total consideration for the transaction, net of cash acquired, was $1.6 billion, consisting of $1.3 billion of cash and $246 million of a previously-held equity investment in Mazor. Based upon a preliminary acquisition valuation, the Company acquired $383 million of technology-based intangible assets and $16 million of tradenames with estimated useful lives of 10 years and $1.2 billion of goodwill. The goodwill is primarily attributable to pull-through revenue, future yet to be defined technologies, and an assembled workforce. The goodwill is not deductible for tax purposes.

During fiscal year 2019, the Company recognized $51 million of costs incurred in connection with the acquisition of Mazor, including payouts for unvested stock options and investment banker and other transaction fees, which were recognized in selling, general, and administrative expense in the consolidated statements of income. Revenue and net income (loss) attributable to Mazor since the date of acquisition included in the consolidated statements of income were not significant for fiscal year 2019.

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Notes to Consolidated Financial Statements (Continued)

EPiX Therapeutics, Inc.

On March 8, 2019, the Company's Cardiac and Vascular Group acquired EPiX Therapeutics, Inc. (EPiX), a medical device company that designs and manufactures a novel, catheter-based, temperature-controlled cardiac ablation system for the treatment of patients with cardiac arrhythmias, including atrial fibrillation. This acquisition expands the Company's cardiac ablation portfolio to offer physicians a comprehensive suite of tools to treat patients with cardiac arrhythmias. Total consideration for the transaction, net of cash acquired, was $316 million, consisting of $216 million of cash and $100 million of contingent consideration. Contingent consideration is primarily comprised of a product development-based payment triggered upon a U.S. Federal Drug Administration regulatory approval. Based upon a preliminary acquisition valuation, the Company acquired $162 million of IPR&D related to the DiamondTemp ablation system and $165 million of goodwill. The goodwill is primarily attributable to future yet to be defined technologies and is not deductible for tax purposes. Expenses incurred in connection with the acquisition of EPiX were not significant. Revenue and net income (loss) attributable to EPiX since the date of acquisition included in the consolidated statements of income were not significant for fiscal year 2019.

Fiscal Year 2018

The acquisition date fair value of net assets acquired in fiscal year 2018 was $152 million, consisting of $156 million of assets acquired and $4 million of liabilities assumed. Assets acquired were primarily comprised of $52 million of goodwill, $48 million of customer-related intangible assets with estimated useful lives of 7 years, and $47 million of technology-based intangible assets with estimated useful lives ranging from 10 to 12 years.

Additionally, in the first quarter of fiscal year 2018, adjustments were made to finalize the allocation of purchase price for the Company's acquisition of HeartWare International, Inc., which was acquired on August 23, 2016, related to contingent liabilities and other assets, which resulted in an increase to goodwill of $54 million.

Acquired In-Process Research & Development

IPR&D acquired outside of a business combination is expensed immediately. During fiscal year 2019, the Company acquired $38 million of IPR&D in connection with asset acquisitions, which was recognized in other operating expense, net in the consolidated statements of income. The Company did not acquire any IPR&D in connection with asset acquisitions during fiscal years 2018 and 2017.

Contingent Consideration

The fair value of contingent consideration at April 26, 2019 and April 27, 2018 was $222 million and $173 million, respectively. At April 26, 2019, $73 million was recorded in other accrued expenses and $149 million was recorded in other liabilities on the consolidated balance sheets. At April 27, 2018, $108 million was reflected in other accrued expenses and $65 million was reflected in other liabilities on the consolidated balance sheets.

The following table provides a reconciliation of the beginning and ending balances of contingent consideration:

	Fiscal Year
(in millions)	2019			2018
Beginning Balance	$	173		$	246
Purchase price contingent consideration	151			28
Contingent consideration payments	(36		)	(72		)
Change in fair value of contingent consideration	(66		)	(29		)
Ending Balance	$	222		$	173

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Notes to Consolidated Financial Statements (Continued)

The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs:

(in millions)	Fair Value at April 26, 2019		Valuation Technique	Unobservable Input	Range
				Discount rate	11.5% - 32.5%
Revenue-based payments	$	90	Discounted cash flow	Probability of payment	65% - 100%
				Projected fiscal year of payment	2020 - 2025
				Discount rate	5.5%
Product development-based payments	$	132	Discounted cash flow	Probability of payment	75% - 100%
				Projected fiscal year of payment	2020 - 2027

4. Divestiture

On July 29, 2017, the Company completed the sale of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses within the Minimally Invasive Therapies Group segment to Cardinal Health, Inc. (Cardinal). As a result of the transaction, the Company received proceeds of $6.1 billion, which was recorded in proceeds from sale of businesses in the consolidated statements of cash flows, and recognized a before-tax gain of $697 million, which was recognized within gain on sale of businesses in the consolidated statements of income. Among the product lines included in the divestiture were dental and animal health, chart paper, wound care, incontinence, electrodes, SharpSafety, thermometry, perinatal protection, blood collection, compression, and enteral feeding offerings. The divestiture also included 17 dedicated manufacturing sites.

In fiscal year 2018, the Company recognized expenses incurred in connection with the divestiture of $115 million, primarily comprised of professional services, including banker, legal, tax, and advisory fees, as well as $16 million of accelerated stock compensation expense related to the acceleration of the vesting period for employees that transferred with the divestiture. Expenses incurred in connection with the divestiture were recognized in selling, general, and administrative expense in the consolidated statements of income. There were no divestiture-related expenses during fiscal years 2019 or 2017.

The divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses did not meet the criteria to be classified as discontinued operations, as such, the results of operations of these businesses are included within net income through the date of the divestiture.

5. Restructuring Charges

For fiscal year 2019, the Company recognized $407 million in restructuring charges, net of $17 million of accrual adjustments. For fiscal year 2018, the Company recognized $107 million in restructuring charges, net of $34 million of accrual adjustments, including $96 million in restructuring charges related to the Enterprise Excellence restructuring program and $11 million in restructuring charges, net of $34 million of accrual adjustments, related to the Cost Synergies restructuring program. For fiscal year 2017, the Company recognized $300 million in restructuring charges, net of $68 million of accrual adjustments related to the Cost Synergies restructuring program. Accrual adjustments relate to certain employees identified for termination finding other positions within the Company, cancellations of employee terminations, and employee termination benefits being less than initially estimated.

Enterprise Excellence

In the third quarter of fiscal year 2018, the Company announced its Enterprise Excellence restructuring program, which is expected to leverage the Company's global size and scale, as well as enhance the customer and employee experience, with a focus on three objectives: global operations, functional optimization, and commercial optimization. Primary activities of the restructuring program include integrating and enhancing global manufacturing and supply processes, systems and site presence, enhancing and leveraging global operating models across several enabling functions, and optimizing certain commercial processes, systems, and models.

The Company estimates that, in connection with its Enterprise Excellence restructuring program, it will recognize pre-tax exit and disposal costs and other costs associated with the restructuring program across all segments of approximately $1.6 billion to $1.8 billion, the majority of which are expected to be incurred by the end of fiscal year 2022. Approximately half of the estimated charges are related to employee termination benefits. The remaining restructuring charges are costs associated with the restructuring program, such as salaries for employees supporting the program and consulting expenses. These charges are recognized within restructuring charges, net, cost of products sold, and selling, general, and administrative expense in the consolidated statements of income.

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Notes to Consolidated Financial Statements (Continued)

During fiscal year 2019, the Company recognized $424 million in charges, including $91 million recognized within cost of products sold and $118 million recognized within selling, general, and administrative expense in the consolidated statements of income. During fiscal year 2018, the Company recognized $96 million in charges, including $28 million within cost of products sold and $33 million recognized within selling, general, and administrative expense in the consolidated statements of income.

The following table summarizes the activity related to the Enterprise Excellence restructuring program for fiscal years 2019 and 2018:

(in millions)	Employee Termination Benefits			Associated Costs(1)			Asset Write-downs(2)			Other Costs			Total
April 28, 2017	$	—		$	—		$	—		$	—		$	—
Charges	35			61			—			—			96
Cash payments	(8		)	(59		)	—			—			(67		)
April 27, 2018	27			2			—			—			29
Charges	192			193			17			22			424
Cash payments	(118		)	(186)			—			(10		)	(314		)
Settled non-cash	—			—			(17		)	—			(17		)
April 26, 2019	$	101		$	9		$	—		$	12		$	122

(1) Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses.

(2) Recognized within selling, general, and administrative expense in the consolidated statements of income.

Cost Synergies

The cost synergies program related to administrative office optimization, manufacturing and supply chain infrastructure, and certain general and administrative savings was achieved as part of the Covidien plc (Covidien) integration and completed in the third quarter of fiscal year 2018. Restructuring charges incurred throughout the life of the initiative affecting all segments were primarily related to employee termination costs and costs related to manufacturing and facility closures.

The following table summarizes the activity related to the Cost Synergies restructuring program for fiscal years 2019, 2018, and 2017:

(in millions)	Employee Termination  Benefits			Asset Write-downs			Other  Costs			Total
April 29, 2016	$	213		$	—		$	37		$	250
Charges	287			27			54			368
Cash payments	(179		)	—			(53		)	(232		)
Settled non-cash	—			(27		)	—			(27		)
Accrual adjustments	(60		)	—			(8		)	(68		)
April 28, 2017	261			—			30			291
Charges	25			—			20			45
Cash payments	(132		)	—			(32		)	(164		)
Accrual adjustments	(38		)	—			4			(34		)
April 27, 2018	116			—			22			138
Cash payments	(44		)	—			(13		)	(57		)
Accrual adjustments	(13		)	—			(4		)	(17		)
April 26, 2019	$	59		$	—		$	5		$	64

For fiscal year 2019, the Company recognized no charges and accrual adjustments of $17 million. For fiscal year 2018, the Company recognized $45 million in charges, partially offset by accrual adjustments of $34 million, including $12 million recognized within

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Notes to Consolidated Financial Statements (Continued)

cost of products sold and $4 million recognized within selling, general, and administrative expense in the consolidated statements of income.

For fiscal year 2017, the Company recognized $441 million in charges, which included $73 million of incremental defined pension and post-retirement related expenses for employees that accepted voluntary early retirement packages. These costs are not included in the table summarizing the restructuring above, because they are associated with costs that are accounted for under the pension and post-retirement rules. See Note 16 for further discussion on the incremental defined benefit pension and post-retirement related expenses. The charges recognized during 2017 were partially offset by accrual adjustments of $68 million. For fiscal year 2017, asset write-downs included $17 million of property, plant, and equipment impairments. Fiscal year 2017 assets write-downs also included $10 million of inventory write-offs of discontinued product lines recognized within cost of products sold in the consolidated statements of income.

6. Financial Instruments

Debt Securities

The Company holds investments in marketable debt securities that are classified and accounted for as available-for-sale and are remeasured on a recurring basis. Refer to Note 1 for information regarding valuation techniques and inputs used in the fair value measurements.

The following tables summarize the Company's investments in available-for-sale debt securities by significant investment category and the related consolidated balance sheet classification at April 26, 2019 and April 27, 2018:

	April 26, 2019
	Valuation									Balance Sheet Classification
(in millions)	Cost		Unrealized Gains		Unrealized Losses			Fair Value		Investments		Other Assets
Level 1:
U.S. government and agency securities	$	529	$	1	$	(7	)	$	523	$	523	$	—
Level 2:
Corporate debt securities	3,500		14		(21		)	3,493		3,493		—
U.S. government and agency securities	387		1		(7		)	381		381		—
Mortgage-backed securities	537		3		(20		)	520		520		—
Non-U.S. government and agency securities	11		—		—			11		11		—
Other asset-backed securities	529		1		(3		)	527		527		—
Total Level 2	4,964		19		(51		)	4,932		4,932		—
Level 3:
Auction rate securities	47		—		(3		)	44		—		44
Total available-for-sale debt securities	$	5,540	$	20	$	(61	)	$	5,499	$	5,455	$	44

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Notes to Consolidated Financial Statements (Continued)

	April 27, 2018
	Valuation									Balance Sheet Classification
(in millions)	Cost		Unrealized Gains		Unrealized Losses			Fair Value		Investments		Other Assets
Level 1:
U.S. government and agency securities	$	732	$	—	$	(26	)	$	706	$	706	$	—
Level 2:
Corporate debt securities	4,179		20		(75		)	4,124		4,124		—
U.S. government and agency securities	848		—		(24		)	824		824		—
Mortgage-backed securities	725		2		(34		)	693		693		—
Non-U.S. government and agency securities	74		—		(1		)	73		73		—
Other asset-backed securities	358		—		(2		)	356		356		—
Total Level 2	6,184		22		(136		)	6,070		6,070		—
Level 3:
Auction rate securities	47		—		(3		)	44		—		44
Total available-for-sale debt securities	$	6,963	$	22	$	(165	)	$	6,820	$	6,776	$	44

The following tables present the gross unrealized losses and fair values of the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category, at April 26, 2019 and April 27, 2018:

	April 26, 2019
	Less than 12 months					More than 12 months
(in millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. government and agency securities	$	130	$	(1	)	$	649	$	(13	)
Corporate debt securities	582		(5		)	1,153		(16		)
Mortgage-backed securities	73		(1		)	250		(19		)
Other asset-backed securities	290		(2		)	85		(1		)
Auction rate securities	—		—			44		(3		)
Total	$	1,075	$	(9	)	$	2,181	$	(52	)

	April 27, 2018
	Less than 12 months					More than 12 months
(in millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. government and agency securities	$	762	$	(33	)	$	374	$	(17	)
Corporate debt securities	2,620		(58		)	272		(17		)
Mortgage-backed securities	442		(15		)	102		(19		)
Non-U.S. government and agency securities	32		—			36		(1		)
Other asset-backed securities	238		(1		)	63		(1		)
Auction rate securities	—		—			44		(3		)
Total	$	4,094	$	(107	)	$	891	$	(58	)

The following table presents the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 at April 26, 2019:

	Valuation Technique	Unobservable Input	Range (Weighted Average)
Auction rate securities	Discounted cash flow	Years to principal recovery	2 yrs. - 12 yrs. (3 yrs.)
		Illiquidity premium	6%

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Notes to Consolidated Financial Statements (Continued)

The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s policy is to recognize transfers into and out of levels within the fair value hierarchy at the end of the fiscal quarter in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers between Level 1, Level 2, or Level 3 during fiscal years 2019 or 2018. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement.

The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3):

(in millions)	Total Level 3 Investments			Corporate Debt Securities			Auction Rate Securities
April 28, 2017	$	45		$	1		$	44
Settlements	(1		)	(1		)	—
April 27, 2018	44			—			44
Settlements	—			—			—
April 26, 2019	$	44		$	—		$	44

Activity related to the Company’s debt securities portfolio is as follows:

(in millions)	April 26, 2019			April 27, 2018			April 28, 2017
Proceeds from sales	$	3,718		$	3,309		$	3,646
Gross realized gains	18			27			49
Gross realized losses	(62		)	(21		)	(14		)

Credit losses represent the difference between the present value of cash flows expected to be collected on certain mortgage-backed securities and auction rate securities and the amortized cost of these securities. Based on the Company’s assessment of the credit quality of the underlying collateral and credit support available to each of the remaining securities in which the Company is invested, the Company believes it has recognized all necessary other-than-temporary impairments, as the Company does not have the intent to sell, nor is it more likely than not that the Company will be required to sell, before recovery of the amortized cost.

At April 26, 2019 and April 27, 2018, the credit loss portion of other-than temporary impairments on debt securities was not significant. The total reductions for available-for-sale debt securities sold during fiscal years 2019 and 2018 were not significant.

The April 26, 2019 balance of available-for-sale debt securities by contractual maturity is shown in the following table. Within the table, maturities of mortgage-backed securities have been allocated based upon timing of estimated cash flows assuming no change in the current interest rate environment. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

(in millions)	April 26, 2019
Due in one year or less	$	1,022
Due after one year through five years	2,198
Due after five years through ten years	2,244
Due after ten years	35
Total debt securities	$	5,499

Equity Securities, Equity Method Investments, and Other Investments

The Company commonly holds investments in equity securities with readily determinable fair values, equity investments without readily determinable fair values, investments accounted for under the equity method, and other investments.

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Notes to Consolidated Financial Statements (Continued)

Effective April 28, 2018, the Company adopted accounting standards update (ASU) 2016-01, which requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. As a result of the adoption, the Company reclassified $47 million from accumulated other comprehensive loss to the opening balance of retained earnings as of April 28, 2018. The Company uses quoted market prices to determine the fair value of equity securities with readily determinable fair values. For equity investments without readily determinable fair values that do not qualify for the practical expedient to estimate fair value using the net asset value per share or its equivalent, the Company has elected to measure these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. This election is made for each investment separately and is reassessed at each reporting period as to whether the investment continues to qualify for this election. Additionally, at each reporting period, the Company makes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired.

Equity securities with readily determinable fair values are included within Level 1 of the fair value hierarchy, as they are measured using quoted market prices. Equity method investments and investments without readily determinable fair values, as described above, are included within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value. To determine the fair value of these investments, the Company uses all pertinent financial information available related to the investees, including financial statements, market participant valuations from recent and proposed equity offerings, and other third-party data.

The following table summarizes the Company's equity and other investments at April 26, 2019, which are classified as other assets in the consolidated balance sheets:

(in millions)	April 26, 2019
Investments without readily determinable fair values	$	308
Equity method and other investments	64
Total equity and other investments	$	372

Prior to the adoption of ASU 2016-01, marketable equity securities were classified as available-for-sale and measured at fair value with unrealized changes recognized in accumulated other comprehensive income (AOCI), net of deferred taxes. Gains and losses on available-for-sale marketable equity securities were recognized in net income when realized. The Company also accounted for certain investments without quoted market prices under the cost method of accounting.

The following table summarizes the values of the Company's equity and other investments by significant investment category and the related consolidated balance sheet classification at April 27, 2018:

	Valuation									Balance Sheet Classification
(in millions)	Cost		Unrealized Gains		Unrealized Losses			Fair Value		Investments		Other Assets
Level 1:
Marketable equity securities	$	63	$	99	$	—		$	162	$	—	$	162
Level 2:
Debt funds	739		—		(154		)	585		585		—
Investments measured at net asset value(1):
Debt funds	199		—		(2		)	197		197		—
Total available-for-sale equity securities	1,001		99		(156		)	944		782		162
Cost method, equity method, and other investments:
Level 3:
Cost method, equity method, and other investments	353		—		—			N/A		—		353
Total equity and other investments	$	1,354	$	99	$	(156	)	$	944	$	782	$	515

(1) Certain investments that are measured at the net asset value per share (or its equivalent) as a practical expedient are excluded from the fair value hierarchy. The fair value amounts presented herein are intended to permit reconciliation to the consolidated balance sheets.

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Notes to Consolidated Financial Statements (Continued)

The table below includes activity related to the Company’s portfolio of equity and other investments. Gains and losses on equity and other investments are recognized in other non-operating income, net in the consolidated statements of income.    

(in millions)	April 26, 2019			April 27, 2018			April 28, 2017
Proceeds from sales	$	964		$	918		$	1,710
Gross realized gains	134			18			75
Gross realized losses	(30		)	(4		)	(42		)
Recognized impairment losses	(45		)	(231		)	(30		)

Net gains recognized during fiscal year 2019 were $104 million, comprised of $94 million net realized gains on equity and other investments sold during the period and $10 million of unrealized gains on equity and other investments still held at April 26, 2019. Gross gains and losses for fiscal years 2018 and 2017 represent gains and losses on instruments sold during the period.

During fiscal year 2018, the Company received bids from potential buyers and investors for some or all of its ownership in a portfolio of selected investments, which indicated that the fair values of certain of the underlying cost and equity method investments in the portfolio may be below the respective carrying values. The Company determined that the decline in the fair values was other-than-temporary given the uncertainty regarding the Company’s intent to hold the investments for a period of time that would be sufficient to recover the carrying values. As a result, the Company recognized impairment charges of $227 million during fiscal year 2018, which were recognized in other non-operating income, net in the consolidated statements of income. The fair values of the investments were determined based on Level 3 inputs. The carrying values of the investments prior to recognizing the impairment charges was $317 million. There were no other significant impairment charges recognized during fiscal year 2018 and impairment charges during fiscal years 2019 and 2017 were not significant.

7. Financing Arrangements

Current debt obligations consisted of the following:

(in millions)	April 26, 2019		April 27, 2018
Bank borrowings	$	332	$	355
Floating rate five-year 2015 senior notes	500		—
Capital lease obligations	6		5
Commercial paper	—		698
1.700 percent two-year 2017 senior notes	—		1,000
Current debt obligations	$	838	$	2,058

Bank Borrowings Outstanding bank borrowings at April 26, 2019 were short-term advances to certain non-U.S. subsidiaries under credit agreements with various banks. Bank borrowings consist primarily of borrowings in Japanese Yen at an interest rate of 0.18%, and the borrowing is a natural hedge of currency and exchange rate risk.

Commercial Paper On January 26, 2015, Medtronic Global Holdings S.C.A. (Medtronic Luxco), an entity organized under the laws of Luxembourg, entered into various agreements pursuant to which Medtronic Luxco may issue unsecured commercial paper notes (the 2015 Commercial Paper Program) on a private placement basis up to a maximum aggregate amount outstanding at any time of $3.5 billion. The Company and Medtronic, Inc. have guaranteed the obligations of Medtronic Luxco under the 2015 Commercial Paper Program.

There was no commercial paper outstanding at April 26, 2019, as compared to $698 million outstanding at April 27, 2018. During fiscal years 2019 and 2018, the weighted average original maturity of the commercial paper outstanding was approximately 27 days and 28 days, respectively, and the weighted average interest rate was 2.12 percent and 1.46 percent, respectively. The issuance of commercial paper reduces the amount of credit available under the Company's existing Credit Facility, defined below.

Line of Credit On December 12, 2018, Medtronic Luxco, as borrower, entered into an amended and restated credit agreement (Credit Facility), by and among Medtronic, Medtronic, Inc., Medtronic Luxco, the lenders from time to time party thereto, and Bank of America, N.A., as administrative agent and issuing bank, which expires in December 2023. The Credit Facility replaces the previous credit agreement dated November 7, 2014 and effective as of January 26, 2015.

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Notes to Consolidated Financial Statements (Continued)

The Credit Facility provides for a $3.5 billion five-year unsecured revolving credit facility (Credit Facility). At each anniversary date of the Credit Facility, but not more than twice prior to the maturity date, the Company could also request a one-year extension of the maturity date. The Credit Facility provides the Company with the ability to increase its borrowing capacity by an additional $1.0 billion at any time during the term of the agreement. The Company and Medtronic, Inc. have guaranteed the obligations of the borrowers under the Credit Facility, and Medtronic Luxco will also guarantee the obligations of any designated borrower. The Credit Facility includes a multi-currency borrowing feature for certain specified foreign currencies. At April 26, 2019 and April 27, 2018, no amounts were outstanding under the original or amended credit facilities.

Interest rates on advances on the Credit Facility are determined by a pricing matrix, based on the Company’s long-term debt ratings, assigned by Standard & Poor’s Ratings Services and Moody’s Investors Service. Facility fees are payable on the Credit Facility and are determined in the same manner as the interest rates. The agreements also contain customary covenants, all of which the Company remained in compliance with at April 26, 2019.

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Notes to Consolidated Financial Statements (Continued)

Long-term debt consisted of the following:

		April 26, 2019					April 27, 2018
(in millions, except interest rates)	Maturity by Fiscal Year	Amount			Effective Interest Rate		Amount			Effective Interest Rate
Floating rate five-year 2015 senior notes	2020	$	—		—	%	$	500		2.92	%
2.500 percent five-year 2015 senior notes	2020	—			—		2,500			2.63
4.200 percent ten-year 2010 CIFSA senior notes	2021	—			—		600			2.33
0.000 percent two-year 2019 senior notes	2021	1,681			0.22		—			—
Floating rate two-year 2019 senior notes	2021	560			0.05		—			—
4.125 percent ten-year 2011 senior notes	2021	500			4.21		500			4.21
3.150 percent seven-year 2015 senior notes	2022	2,500			3.29		2,500			3.29
3.125 percent ten-year 2012 senior notes	2022	675			3.21		675			3.21
3.200 percent ten-year 2012 CIFSA senior notes	2023	650			2.72		650			2.72
0.375 percent four-year 2019 senior notes	2023	1,681			0.56		—			—
2.750 percent ten-year 2013 senior notes	2023	530			3.25		530			3.25
2.950 percent ten-year 2013 CIFSA senior notes	2024	310			2.71		310			2.71
3.625 percent ten-year 2014 senior notes	2024	850			3.61		850			3.61
3.500 percent ten-year 2015 senior notes	2025	4,000			3.74		4,000			3.74
1.125 percent eight-year 2019 senior notes	2027	1,681			1.25		—			—
3.350 percent ten-year 2017 senior notes	2027	850			3.53		850			3.53
1.625 percent twelve-year 2019 senior notes	2031	1,121			1.75		—			—
4.375 percent twenty-year 2015 senior notes	2035	2,382			4.47		2,382			4.47
6.550 percent thirty-year 2007 CIFSA senior notes	2038	284			4.68		374			4.68
2.250 percent twenty-year 2019 senior notes	2039	1,121			2.34		—			—
6.500 percent thirty-year 2009 senior notes	2039	183			6.56		300			6.56
5.550 percent thirty-year 2010 senior notes	2040	306			5.58		500			5.58
4.500 percent thirty-year 2012 senior notes	2042	129			4.54		400			4.54
4.000 percent thirty-year 2013 senior notes	2043	325			4.10		325			4.10
4.625 percent thirty-year 2014 senior notes	2044	177			4.67		650			4.67
4.625 percent thirty-year 2015 senior notes	2045	1,963			4.69		4,150			4.69
Bank borrowings	2021-2022	83			1.94		125			3.99
Debt premium, net	2021-2045	29			—		120			—
Capital lease obligations	2021-2028	10			6.39		21			4.46
Interest rate swaps	2021-2022	9			—		(6		)	—
Deferred financing costs	2021-2045	(104		)	—		(107		)	—
Long-term debt		$	24,486				$	23,699

Senior Notes The Company has outstanding unsecured senior obligations, described as senior notes in the tables above (collectively, the Senior Notes). The Senior Notes rank equally with all other unsecured and unsubordinated indebtedness of the Company. The indentures under which the Senior Notes were issued contain customary covenants, all of which the Company remained in compliance with at April 26, 2019. The Company used the net proceeds from the sale of the Senior Notes primarily for general corporate purposes, which includes the repayment of other indebtedness of the Company.

In March 2019, Medtronic Luxco issued six tranches of Euro-denominated Senior Notes with an aggregate principal of €7.0 billion, with maturities ranging from fiscal year 2021 to fiscal year 2039, resulting in cash proceeds of approximately $7.8 billion, net of

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discounts and issuance costs (collectively, the 2019 Senior Notes). The issuance included €500 million of floating rate Senior Notes due in fiscal year 2021, €1.5 billion of 0.000 percent Senior Notes due in fiscal year 2021, €1.5 billion of 0.375 percent Senior Notes due in fiscal year 2023, €1.5 billion of 1.125 percent Senior Notes due in fiscal year 2027, €1.0 billion of 1.625 percent Senior Notes due in fiscal year 2031, and €1.0 billion of 2.250 percent Senior Notes due in fiscal year 2039. The Company used a portion of the net proceeds of the offering to fund the previously announced cash tender offers and early redemption, described below. The Euro-denominated debt is designated as a net investment hedge of certain of the Company's European operations. Refer to Note 8 for additional information regarding the net investment hedge.

The Company completed the cash tender offer and early redemption of $6.4 billion of Medtronic Inc. and CIFSA senior notes for $6.9 billion of total consideration in March 2019. The Company recognized a loss on debt extinguishment of $485 million, which primarily included cash premiums and accelerated amortization of deferred financing costs and debt discounts and premiums. The loss on debt extinguishment was recognized in interest expense in the consolidated statements of income. Also in March 2019, the Company repaid its 1.700 percent two-year 2017 senior notes, including interest, for $1.0 billion.

In April 2018, the Company completed an early redemption of approximately $1.2 billion of Senior Notes for $1.2 billion of total consideration. The Company recognized a loss on the debt redemption of $38 million, which included cash premiums and accelerated amortization of deferred financing costs. The loss was recognized in interest expense in the consolidated statements of income.

At April 26, 2019 and April 27, 2018, the Company had interest rate swap agreements designated as fair value hedges of certain underlying fixed-rate obligations, including the Company’s $500 million 4.125 percent 2011 Senior Notes and $675 million 3.125 percent 2012 Senior Notes. Refer to Note 8 for additional information regarding the interest rate swap agreements.

Contractual maturities of debt for the next five fiscal years and thereafter, excluding deferred financing costs, debt premium, net, and the fair value of outstanding interest rate swap agreements are as follows:

(in millions)
2020	$	838
2021	2,747
2022	3,258
2023	2,862
2024	1,161
Thereafter	14,524
Total debt	25,390
Less: Current debt obligations	838
Long-term debt	$	24,552

Financial Instruments Not Measured at Fair Value

At April 26, 2019, the estimated fair value of the Company’s Senior Notes was $26.2 billion compared to a principal value of $25.0 billion. At April 27, 2018 the estimated fair value was $25.1 billion compared to a principal value of $24.5 billion. The fair value was estimated using quoted market prices for the publicly registered Senior Notes, which are classified as Level 2 within the fair value hierarchy. The fair values and principal values consider the terms of the related debt and exclude the impacts of debt discounts and hedging activity.

8. Derivatives and Currency Exchange Risk Management

The Company uses operational and economic hedges, as well as currency exchange rate derivative contracts and interest rate derivative instruments, to manage the impact of currency exchange and interest rate changes on earnings and cash flows. In addition, the Company uses cross-currency interest rate swaps to manage currency risk related to certain debt. In order to minimize earnings and cash flow volatility resulting from currency exchange rate changes, the Company enters into derivative instruments, principally forward currency exchange rate contracts. These contracts are designed to hedge anticipated foreign currency transactions and changes in the value of specific assets and liabilities. At inception of the contract, the derivative is designated as either a freestanding derivative or a cash flow hedge. The primary currencies of the derivative instruments are the Euro, Japanese Yen, and British Pound. The Company does not enter into currency exchange rate derivative contracts for speculative purposes. The gross notional

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amount of all currency exchange rate derivative instruments outstanding was $11.1 billion and $11.5 billion at April 26, 2019 and April 27, 2018, respectively.

The Company also uses derivative and non-derivative instruments to manage the impact of currency exchange rate changes on net investments in foreign currency-denominated operations. The information that follows explains the various types of derivatives and financial instruments used by the Company, reasons the Company uses such instruments, and the impact such instruments have on the Company’s consolidated balance sheets and statements of income.

Freestanding Derivative Contracts

Freestanding derivative contracts are primarily used to offset the Company’s exposure to the change in value of specific foreign-currency-denominated assets and liabilities and to offset variability of cash flows associated with forecasted transactions denominated in foreign currencies. The gross notional amount of the Company's currency exchange rate contracts outstanding at April 26, 2019 and April 27, 2018 was $4.3 billion and $5.2 billion, respectively. The Company's freestanding currency exchange rate contracts are not designated as hedges, and therefore, changes in the value of these contracts are recognized in earnings, thereby offsetting the current earnings effect of the related change in value of foreign-currency-denominated assets, liabilities, and cash flows.

The Company also entered into total return swaps in fiscal year 2018, which are used to hedge the liability of a non-qualified, deferred compensation plan. The gross notional amount of the Company's total return swaps outstanding at April 26, 2019 and April 27, 2018 was $191 million and $210 million, respectively. The Company's total return swaps are not designated as hedges, and therefore, changes in the value of these instruments are recognized in earnings. The cash flows related to the Company's freestanding derivative contracts are reported as operating activities in the consolidated statements of cash flows.

The amounts and classification of the gains (losses) in the consolidated statements of income related to derivative instruments, not designated as hedging instruments, for fiscal years 2019, 2018, and 2017 are as follows:

		Fiscal Year
(in millions)	Classification	2019		2018			2017
Currency exchange rate contracts	Other operating expense, net	$	218	$	(253	)	$	54
Total return swaps	Other operating expense, net	18		27			—
Total		$	236	$	(226	)	$	54

Cash Flow Hedges

Currency Exchange Rate Risk

Forward contracts designated as cash flow hedges are designed to hedge the variability of cash flows associated with forecasted transactions denominated in a foreign currency that will take place in the future. The gross notional amount of these contracts, designated as cash flow hedges, outstanding at April 26, 2019 and April 27, 2018 was $6.8 billion and $6.3 billion, respectively, and will mature within the subsequent two-year period. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive loss. The effective portion of the gain or loss on the derivative instrument is reclassified into earnings and is included in other operating expense, net in the consolidated statements of income in the same period or periods during which the hedged transaction affects earnings. The cash flows related to all of the Company's derivative instruments designated as cash flow hedges are reported as operating activities in the consolidated statements of cash flows.

No gains or losses relating to ineffectiveness of cash flow hedges were recognized in earnings during fiscal years 2019, 2018, or 2017. No components of the hedge contracts were excluded in the measurement of hedge ineffectiveness, and no hedges were derecognized or discontinued during fiscal years 2019, 2018, or 2017.

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The amount of gross gains (losses) recognized in the consolidated statements of income related to derivative instruments designated as cash flow hedges for fiscal years 2019, 2018, and 2017 were as follows:

		Fiscal Year
(in millions)	Classification	2019		2018			2017
Currency exchange rate contracts	Other operating expense, net	$	108	$	(69	)	$	173

The amount of the gains (losses) recognized in AOCI related to the effective portion of currency exchange rate contract derivative instruments designated as cash flow hedges for fiscal years 2019, 2018, and 2017 were as follows:

	Fiscal Year
(in millions)	2019		2018			2017
Currency exchange rate contracts	$	615	$	(404	)	$	342

Forecasted Debt Issuance Interest Rate Risk

Forward starting interest rate derivative instruments designated as cash flow hedges are designed to manage the exposure to interest rate volatility with regard to future issuances of fixed-rate debt. The effective portion of the gains or losses on forward starting interest rate derivative instruments that are designated and qualify as cash flow hedges are reported as a component of accumulated other comprehensive loss. Beginning in the period in which the planned debt issuance occurs and the related derivative instruments are terminated, the effective portion of the gains or losses are then reclassified into interest expense over the term of the related debt. Any portion of the gains or losses that are determined to be ineffective is immediately recognized in interest expense. For fiscal years 2019 and 2018, the reclassifications of the effective portion of net gains (losses) on forward starting interest rate derivative instruments from accumulated other comprehensive loss to interest expense were not significant.

During fiscal year 2017, in connection with the issuance of the 2017 Senior Notes, the Company terminated $300 million of fixed pay, forward starting interest rate swaps with a weighted average fixed rate of 3.10 percent. During fiscal year 2017, there were $21 million of unrealized gains recorded in accumulated other comprehensive loss.

No gains or losses related to the ineffectiveness of forward starting interest rate derivative instruments were recognized in interest expense during fiscal year 2017. Additionally, during fiscal year 2017, no components of the forward starting interest rate derivative instruments were excluded in the measurement of hedge ineffectiveness and no hedges were derecognized or discontinued. The reclassification of the effective portion of the net losses from accumulated other comprehensive loss to interest expense was not significant.

At April 26, 2019 and April 27, 2018, the Company had $194 million and $(207) million, respectively, in after-tax net unrealized gains (losses) associated with cash flow hedging instruments recorded in accumulated other comprehensive loss. The Company expects that $175 million of after-tax net unrealized gains at April 26, 2019 will be recognized in the consolidated statements of income over the next 12 months.

Net Investment Hedges

The Company has designated Euro-denominated debt as a net investment hedge of certain of its European operations to manage the exposure to currency and exchange rate movements for foreign currency-denominated net investments in foreign operations. At April 26, 2019, the Company had $7.8 billion of outstanding Euro-denominated debt designated as a hedge of its net investment in certain of its European operations. These non-derivative instruments will mature beginning fiscal year 2021 through fiscal year 2039.

Additionally, during the fourth quarter of fiscal year 2019, the Company entered into and settled forward currency exchange rate contracts to manage the exposure to exchange rate movements in anticipation of the issuance of the 2019 Senior Notes. Certain of these forward currency exchange rate contracts were designated as a net investment hedge of certain of the Company's European operations. These contracts were terminated in conjunction with the issuance of the 2019 Senior Notes. Historically, the Company utilized forward currency exchange rate contracts designated as net investment hedges, all of which were terminated effective in fiscal year 2009 or prior.

For instruments that are designated and qualify as net investment hedges, the effective portion of the gains or losses is reported as a component of accumulated other comprehensive loss. The effective portion of the gains or losses is reclassified into earnings in the same period as a liquidation event or upon deconsolidation of the foreign subsidiary. Amounts excluded from the assessment

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of effectiveness are recognized in other operating expense, net. The cash flows related to the Company's derivative instruments designated as net investment hedges are reported as investing activities in the consolidated statements of cash flows.

At April 26, 2019 and April 27, 2018, the Company had $169 million and $257 million, respectively, in after-tax unrealized losses associated with net investment hedges recorded in accumulated other comprehensive loss. The Company does not expect any of the after-tax unrealized losses at April 26, 2019 to be recognized in the consolidated statements of income over the next 12 months.

No significant hedge ineffectiveness was recognized as a result of these net investment hedges during fiscal years 2019, 2018, or 2017. In addition, the Company did not recognize any gains or losses during fiscal years 2019, 2018, or 2017 on instruments that no longer qualify as net investment hedges.

The amount and classifications of the gains recognized in the consolidated statements of income for the portion of the net investment hedges excluded from the measurement of hedge ineffectiveness were as follows:

		Fiscal Year
(in millions)	Classification	2019		2018		2017
Net investment hedges	Other operating expense, net	$	12	$	—	$	—

The amount of the gains recognized in AOCI related to the effective portion of instruments designated as net investment hedges for fiscal year 2019, 2018, or 2017 were as follows:

	Fiscal Year
(in millions)	2019		2018		2017
Net investment hedges	$	88	$	—	$	—

Fair Value Hedges

Interest rate derivative instruments designated as fair value hedges are designed to manage the exposure to interest rate movements and to reduce borrowing costs by converting fixed-rate debt into floating-rate debt. Under these agreements, the Company agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount.

Changes in the fair value of the derivative instrument are recognized in interest expense and are offset by changes in the fair value of the underlying debt instrument. The gains (losses) from terminated interest rate swap agreements are recognized in long-term debt, increasing (decreasing) the outstanding balances of the debt, and amortized as a reduction of (addition to) interest expense over the remaining life of the related debt. The cash flows related to the Company's interest rate derivative instruments designated as fair value hedges are reported as operating activities in the consolidated statements of cash flows.

At both April 26, 2019 and April 27, 2018, the Company had interest rate swaps with gross notional amounts of $1.2 billion, designated as fair value hedges of underlying fixed-rate senior note obligations, including the Company’s $500 million 4.125 percent 2011 Senior Notes due fiscal year 2021 and the $675 million 3.125 percent 2012 Senior Notes due fiscal year 2022.

At April 26, 2019, the market value of outstanding interest rate swap agreements was an unrealized gain of $9 million, as compared to an unrealized loss of $6 million at April 27, 2018. The amounts were recorded in other liabilities and other assets with the offsets recorded in long-term debt on the consolidated balance sheets.

No significant hedge ineffectiveness was recognized as a result of these fair value hedges for fiscal years 2019, 2018, or 2017. In addition, the Company did not recognize any gains or losses during fiscal years 2019, 2018, or 2017 on firm commitments that no longer qualify as fair value hedges.

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Balance Sheet Presentation

The following tables summarize the balance sheet classification and fair value of derivative instruments included in the consolidated balance sheets at April 26, 2019 and April 27, 2018. The fair value amounts are presented on a gross basis, and are segregated between derivatives that are designated and qualify as hedging instruments and those that are not designated and do not qualify as hedging instruments, and are further segregated by type of contract within those two categories.

	April 26, 2019
	Derivative Assets			Derivative Liabilities
(in millions)	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Derivatives designated as hedging instruments
Currency exchange rate contracts	Other current assets	$	234	Other accrued expenses	$	1
Interest rate contracts	Other assets	9		Other liabilities	—
Currency exchange rate contracts	Other assets	78		Other liabilities	1
Total derivatives designated as hedging instruments		321			2
Derivatives not designated as hedging instruments
Currency exchange rate contracts	Other current assets	23		Other accrued expenses	17
Total return swaps	Other current assets	15		Other accrued expenses	—
Cross-currency interest rate contracts	Other current assets	6		Other accrued expenses	—
Total derivatives not designated as hedging instruments		44			17
Total derivatives		$	365		$	19
	April 27, 2018
	Derivative Assets			Derivative Liabilities
(in millions)	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Derivatives designated as hedging instruments
Currency exchange rate contracts	Other current assets	$	37	Other accrued expenses	$	162
Interest rate contracts	Other assets	8		Other liabilities	14
Currency exchange rate contracts	Other assets	11		Other liabilities	51
Total derivatives designated as hedging instruments		56			227
Derivatives not designated as hedging instruments
Currency exchange rate contracts	Other current assets	31		Other accrued expenses	25
Total return swaps	Other current assets	4		Other accrued expenses	—
Stock warrants	Other assets	21		Other liabilities	—
Cross-currency interest rate contracts	Other assets	6		Other liabilities	6
Total derivatives not designated as hedging instruments		62			31
Total derivatives		$	118		$	258

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The following table provides information by level for the derivative assets and liabilities that are measured at fair value on a recurring basis:

	April 26, 2019				April 27, 2018
(in millions)	Level 1		Level 2		Level 1		Level 2
Derivative assets	$	335	$	30	$	79	$	39
Derivative liabilities	19		—		238		20

The Company has elected to present the fair value of derivative assets and liabilities within the consolidated balance sheets on a gross basis, even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. The cash flows related to collateral posted and received are reported gross as investing and financing activities, respectively, in the consolidated statements of cash flows. The following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation.

	April 26, 2019
				Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)			Financial Instruments			Cash Collateral (Received) Posted			Securities Collateral (Received) Posted		Net Amount
Derivative assets:
Currency exchange rate contracts	$	335		$	(9	)	$	(43	)	$	—	$	283
Interest rate contracts	9			—			(1		)	—		8
Total return swaps	15			—			—			—		15
Cross-currency interest rate contracts	6			—			—			—		6
	365			(9		)	(44		)	—		312
Derivative liabilities:
Currency exchange rate contracts	(19		)	9			—			—		(10		)
	(19		)	9			—			—		(10		)
Total	$	346		$	—		$	(44	)	$	—	$	302

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	April 27, 2018
				Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)			Financial Instruments			Cash Collateral (Received) Posted		Securities Collateral (Received) Posted		Net Amount
Derivative assets:
Currency exchange rate contracts	$	79		$	(61	)	$	—	$	—	$	18
Interest rate contracts	8			(6		)	—		—		2
Total return swaps	4			—			—		—		4
Stock warrants	21			—			—		—		21
Cross-currency interest rate contracts	6			(4		)	—		—		2
	118			(71		)	—		—		47
Derivative liabilities:
Currency exchange rate contracts	(238		)	61			—		74		(103		)
Interest rate contracts	(14		)	6			—		2		(6		)
Cross-currency interest rate contracts	(6		)	4			—		—		(2		)
	(258		)	71			—		76		(111		)
Total	$	(140	)	$	—		$	—	$	76	$	(64	)

Concentrations of Credit Risk

Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of interest-bearing investments, forward exchange derivative contracts, and trade accounts receivable. Global concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of customers and their dispersion across many geographic areas. The Company monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business.

The Company maintains cash and cash equivalents, investments, and certain other financial instruments (including currency exchange rate and interest rate derivative contracts) with various major financial institutions. The Company performs periodic evaluations of the relative credit standings of these financial institutions and limits the amount of credit exposure with any one institution. In addition, the Company has collateral credit agreements with its primary derivatives counterparties. Under these agreements, either party is required to post eligible collateral when the market value of transactions covered by the agreement exceeds specific thresholds, thus limiting credit exposure for both parties. At April 26, 2019, the Company received net cash collateral of $44 million from its counterparties. At April 27, 2018, the Company posted net securities collateral of $76 million to its counterparties. The cash collateral received was recorded in cash and cash equivalents, with the offset recorded as an increase in other accrued expenses on the consolidated balance sheets. The securities collateral posted remained in investments on the consolidated balance sheets.

9. Inventories

Inventory balances, net of reserves, were as follows:

(in millions)	April 26, 2019		April 27, 2018
Finished goods	$	2,476	$	2,407
Work-in-process	572		496
Raw materials	705		676
Total	$	3,753	$	3,579

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10. Goodwill and Other Intangible Assets

Goodwill

The following table presents the changes in the carrying amount of goodwill by segment:

(in millions)	Cardiac and Vascular Group			Minimally Invasive Therapies Group			Restorative Therapies Group			Diabetes Group			Total
April 28, 2017	$	6,651		$	20,411		$	9,600		$	1,853		$	38,515
Goodwill as a result of acquisitions	6			10			9			27			52
Purchase accounting adjustments	54			—			—			—			54
Currency translation and other	80			734			108			—			922
April 27, 2018	6,791			21,155			9,717			1,880			39,543
Goodwill as a result of acquisitions	165			83			1,238			24			1,510
Currency translation and other	(102		)	(857		)	(134		)	(1		)	(1,094		)
April 26, 2019	$	6,854		$	20,381		$	10,821		$	1,903		$	39,959

The Company did not recognize any goodwill impairments during fiscal years 2019, 2018, or 2017.

Intangible Assets

The following table presents the gross carrying amount and accumulated amortization of intangible assets:

	April 26, 2019					April 27, 2018
(in millions)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Definite-lived:
Customer-related	$	16,944	$	(4,095	)	$	16,949	$	(3,139	)
Purchased technology and patents	11,405		(4,570		)	11,569		(4,441		)
Trademarks and tradenames	570		(324		)	822		(569		)
Other	85		(59		)	94		(52		)
Total	$	29,004	$	(9,048	)	$	29,434	$	(8,201	)
Indefinite-lived:
IPR&D	$	604	$	—		$	490	$	—

During fiscal year 2019, the Company recognized $87 million of definite-lived intangible asset charges, including $61 million and $26 million recognized in connection with business exits in the Cardiac and Vascular Group and Restorative Therapies Group segments, respectively. Definite-lived intangible asset charges are recognized in other operating expense, net in the consolidated statements of income. The Company did not recognize any definite-lived intangible asset impairments during fiscal years 2018 or 2017.

During fiscal year 2019, the Company recognized $30 million of indefinite-lived intangible asset charges, including $11 million in connection with a business exit in the Restorative Therapies Group segment, and $10 million and $9 million in connection with the discontinuation of certain IPR&D projects within the Minimally Invasive Therapies Group and Cardiac and Vascular Group segments, respectively. During fiscal year 2018, the Company recognized impairment losses on indefinite-lived intangibles of $68 million as a result of the discontinuation of certain IPR&D projects within the Restorative Therapies Group segment. Indefinite-lived intangible asset charges are recognized in other operating expense, net in the consolidated statements of income. The Company did not recognize any significant indefinite-lived intangible asset charges during fiscal year 2017. Due to the nature of IPR&D projects, the Company may experience future delays or failures to obtain regulatory approvals to conduct clinical trials, failures of such clinical trials, delays or failures to obtain required market clearances or other failures to achieve a commercially viable product, or the discontinuation of certain projects, and as a result, may recognize impairment losses in the future.

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Amortization

Intangible asset amortization expense was $1.8 billion for fiscal years 2019 and 2018 and $2.0 billion for fiscal year 2017. Estimated aggregate amortization expense by fiscal year based on the current carrying value and remaining estimated useful lives of definite-lived intangible assets at April 26, 2019, excluding any possible future amortization associated with acquired IPR&D which has not met technological feasibility, is as follows:

(in millions)	Amortization Expense
2020	$	1,741
2021	1,724
2022	1,684
2023	1,615
2024	1,574

11. Property, Plant, and Equipment

Property, plant, and equipment balances and corresponding estimated useful lives were as follows:

(in millions)	April 26, 2019			April 27, 2018			Estimated Useful Lives (in years)
Equipment	$	5,519		$	5,171		Generally 2-7, up to 15
Computer software	1,842			1,578			Up to 5
Land and land improvements	181			187			Up to 20
Buildings and leasehold improvements	2,267			2,265			Up to 40
Construction in progress	1,111			1,058			—
Property, plant, and equipment	10,920			10,259
Less: Accumulated depreciation	(6,245		)	(5,655		)
Property, plant, and equipment, net	$	4,675		$	4,604

Depreciation expense of $895 million, $821 million, and $937 million was recognized in fiscal years 2019, 2018, and 2017, respectively.

12. Shareholders’ Equity

Share Capital Medtronic plc is authorized to issue 2.6 billion Ordinary Shares, $0.0001 par value; 40 thousand Euro Deferred Shares, €1.00 par value; 127.5 million Preferred Shares, $0.20 par value; and 500 thousand A Preferred Shares, $1.00 par value.

Euro Deferred Shares The authorized share capital of the Company includes 40 thousand Euro Deferred Shares, with a par value of €1.00 per share. At April 26, 2019, no Euro Deferred Shares were issued or outstanding.

Preferred Shares The authorized share capital of the Company includes 127.5 million of Preferred Shares, with a par value of $0.20 per share. At April 26, 2019, no Preferred Shares were issued or outstanding.

A Preferred Shares The authorized share capital of the Company includes 500 thousand A Preferred Shares, with a par value of $1.00 per share. At April 26, 2019, 1,872 A Preferred Shares were outstanding. The holders of A Preferred Shares are entitled to payment of dividends prior to any other class of shares in the Company equal to twice the dividend to be paid per Company ordinary share. On a return of assets, whether on liquidation or otherwise, the A Preferred Shares are entitled to repayment of the capital paid up thereon in priority to any repayment of capital to the holders of any other shares and the holders of the A Preferred Shares shall not be entitled to any further participation in the assets or profits of the Company. The holders of the A Preferred Shares are not entitled to receive notice of, nor to attend, speak, or vote at any general meeting of the Company.

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Dividends The timing, declaration, and payment of future dividends to holders of the Company's ordinary and A Preferred shares falls within the discretion of the Company's Board of Directors and depends upon many factors, including the statutory requirements of Irish law, the Company's earnings and financial condition, the capital requirements of the Company's businesses, industry practice and any other factors the Board of Directors deems relevant. 

Ordinary Share Repurchase Program Shares are repurchased from time to time to support the Company’s stock-based compensation programs and to return capital to shareholders. During fiscal years 2019 and 2018, the Company repurchased approximately 31 million and 25 million shares, respectively, at an average price of $91.43 and $83.71, respectively.

In June 2015, the Company's Board of Directors authorized, subject to the ongoing existence of sufficient distributable reserves, the repurchase of 80 million of the Company's ordinary shares. As described below, this authorization was replaced in June 2017. During fiscal year 2018, prior to the June 2017 repurchase program which became effective on June 26, 2017, the Company purchased approximately 13 million shares authorized under the June 2015 repurchase program.

In June 2017, the Company’s Board of Directors replaced the June 2015 authorization to repurchase up to an aggregate number of ordinary shares with an authorization to expend up to an aggregate amount of $5.0 billion beginning June 26, 2017 to repurchase the Company’s ordinary shares. In March 2019, the Company's Board of Directors authorized an incremental $6.0 billion for repurchase of the Company's ordinary shares. There is no specific time-period associated with these repurchase authorizations. At April 26, 2019, the Company had used approximately $3.8 billion of the $11.0 billion authorized under the repurchase program, leaving approximately $7.2 billion available for future repurchases. The Company accounts for repurchases of ordinary shares using the par value method and shares repurchased are canceled.

13. Stock Purchase and Award Plans

The Medtronic, Inc. 2013 Stock Award and Incentive Plan was originally approved by the Company's shareholders in August 2013. In January 2015, the Company's Board of Directors approved an amendment to and assumption of the Medtronic, Inc. 2013 Stock Award and Incentive Plan, which created the Medtronic plc 2013 Stock Award and Incentive Plan (2013 Plan). In fiscal year 2019, the Company granted stock awards under the 2013 Plan. The 2013 Plan provides for the grant of non-qualified and incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, and other stock and cash-based awards. At April 26, 2019, there were approximately 51 million shares available for future grants under the 2013 Plan.

Share Options Options are granted at the exercise price, which is equal to the closing price of the Company’s ordinary shares on the grant date. The majority of the Company’s options are non-qualified options with a 10-year life and a 4-year ratable vesting term. The Company also grants shares of performance-based share options that typically cliff vest after three years only if the Company has also achieved certain performance objectives. Performance awards are expensed over the performance period based on the probability of achieving the performance objectives.

Restricted Stock Restricted stock awards and restricted stock units (collectively referred to as restricted stock) are granted to officers and key employees. At April 26, 2019, the Company does not have any outstanding restricted stock awards. Beginning in fiscal year 2018, restricted stock units have a 4-year ratable vesting term. Restricted stock units issued prior to fiscal year 2018 cliff vest after four years. The expense recognized for restricted stock units is equal to the grant date fair value, which is equal to the closing stock price on the date of grant. Restricted stock units are expensed over the vesting period and are subject to forfeiture if employment terminates prior to the lapse of the restrictions. The Company also grants shares of performance-based restricted stock units that typically cliff vest after three years only if the Company has also achieved certain performance objectives. Performance awards are expensed over the performance period based on the probability of achieving the performance objectives.

Restricted stock units are not considered issued or outstanding ordinary shares of the Company. Dividend equivalent units are accumulated on restricted stock units during the vesting period. At April 26, 2019, all restricted stock outstanding were restricted stock units.

Employees Stock Purchase Plan The Medtronic plc Amended and Restated 2014 Employees Stock Purchase Plan (ESPP) allows participating employees to purchase the Company's ordinary shares at a discount through payroll deductions. The expense recognized for shares purchased under the Company’s ESPP is equal to the 15 percent discount the employee receives at the end of the calendar quarter purchase period.

Employees may contribute between 2 percent and 10 percent of their wages or the statutory limit under the U.S. Internal Revenue Code toward the purchase of newly-issued ordinary shares of the Company at 85 percent of its market value at the end of the calendar quarter purchase period. Employees purchased 2 million shares at an average price of $77.74 per share in fiscal year 2019. At April 26, 2019, plan participants had approximately $12 million withheld to purchase the Company's ordinary shares at

85 percent of its market value on June 28, 2019, the last trading day before the end of the calendar quarter purchase period. At April 26, 2019, approximately 13 million ordinary shares were available for future purchase under the ESPP.

Stock Option Valuation Assumptions The Company uses the Black-Scholes option pricing model (Black-Scholes model) to determine the fair value of stock options at the grant date. The fair value of stock options under the Black-Scholes model requires management to make assumptions regarding projected employee stock option exercise behaviors, risk-free interest rates, volatility of the Company’s stock price, and expected dividends.

The following table provides the weighted average fair value of options granted to employees and the related assumptions used in the Black-Scholes model:

	Fiscal Year
	2019			2018			2017
Weighted average fair value of options granted	$	14.77		$	13.71		$	14.70
Assumptions used:
Expected life (years)(1)	6.10			6.16			6.18
Risk-free interest rate(2)	2.90		%	2.00		%	1.26		%
Volatility(3)	17.77		%	19.51		%	21.07		%
Dividend yield(4)	2.25		%	2.19		%	1.97		%

(1) The Company analyzes historical employee stock option exercise and termination data to estimate the expected life assumption. The Company calculates the expected life assumption using the midpoint scenario, which combines historical exercise data with hypothetical exercise data, as the Company believes this data currently represents the best estimate of the expected life of a new employee option.

(2) The rate is based on the grant date yield of a zero-coupon U.S. Treasury bond whose maturity period equals the expected term of the option.

(3) Expected volatility is based on a blend of historical volatility and an implied volatility of the Company’s ordinary shares. Implied volatility is based on market traded options of the Company’s ordinary shares.

(4) The dividend yield rate is calculated by dividing the Company’s annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date.

Stock-Based Compensation Expense The following table presents the components and classification of stock-based compensation expense recognized for stock options, restricted stock, and ESPP in fiscal years 2019, 2018, and 2017:

	Fiscal Year
(in millions)	2019			2018			2017
Stock options	$	72		$	132		$	157
Restricted stock	189			185			169
Employee stock purchase plan	29			27			22
Total stock-based compensation expense	$	290		$	344		$	348
Cost of products sold	$	30		$	44		$	49
Research and development expense	36			38			41
Selling, general, and administrative expense	224			262			256
Restructuring charges, net	—			—			2
Total stock-based compensation expense	290			344			348
Income tax benefits	(54		)	(82		)	(98		)
Total stock-based compensation expense, net of tax	$	236		$	262		$	250

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Stock Options The following table summarizes all stock option activity, including activity from options assumed or issued as a result of acquisitions, during fiscal year 2019:

	Options (in thousands)		Wtd. Avg. Exercise Price		Wtd. Avg. Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at April 27, 2018	41,039		$	66.56
Granted	5,407		89.05
Exercised	(13,767	)	62.76
Expired/Forfeited	(1,002	)	83.17
Outstanding at April 26, 2019	31,677		71.52		5.91	$	512
Vested and expected to vest at April 26, 2019	9,086		86.54		8.46	16
Exercisable at April 26, 2019	22,102		65.01		4.81	495

The following table summarizes the total cash received from the issuance of new shares upon stock option award exercises, the total intrinsic value of options exercised, and the related tax benefit during fiscal years 2019, 2018, and 2017:

	Fiscal Year
(in millions)	2019		2018		2017
Cash proceeds from options exercised	$	825	$	250	$	367
Intrinsic value of options exercised	383		248		403
Tax benefit related to options exercised	78		75		140

Unrecognized compensation expense related to outstanding stock options at April 26, 2019 was $67 million and is expected to be recognized over a weighted average period of 2.5 years.

Restricted Stock The following table summarizes restricted stock activity, including activity from restricted stock assumed or issued as a result of acquisitions, during fiscal year 2019:

	Units (in thousands)		Wtd. Avg. Grant Price
Nonvested at April 27, 2018	8,236		$	83.35
Granted	2,812		88.78
Vested	(2,397	)	72.78
Forfeited	(655	)	83.73
Nonvested at April 26, 2019	7,996		88.40

The following table summarizes the weighted-average grant date fair value of restricted stock granted, total fair value of restricted stock vested and related tax benefit during fiscal years 2019, 2018, and 2017:

	Fiscal Year
(in millions, except per share data)	2019		2018		2017
Weighted-average grant-date fair value per restricted stock	$	88.78	$	83.88	$	85.07
Fair value of restricted stock vested	174		160		131
Tax benefit related to restricted stock vested	45		63		76

Unrecognized compensation expense related to restricted stock as of April 26, 2019 was $353 million and is expected to be recognized over a weighted average period of 2.5 years.

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14. Income Taxes

The income tax provision is based on income before income taxes reported for financial statement purposes. The components of income before income taxes, based on tax jurisdiction, are as follows:

	Fiscal Year
(in millions)	2019		2018			2017
U.S.	$	877	$	(958	)	$	(234	)
International	4,320		6,633			4,836
Income before income taxes	$	5,197	$	5,675		$	4,602

The income tax provision consists of the following:

	Fiscal Year
(in millions)	2019			2018			2017
Current tax expense:
U.S.	$	579		$	2,899		$	614
International	406			796			840
Total current tax expense	985			3,695			1,454
Deferred tax expense (benefit):
U.S.	(310		)	45			(399		)
International	(128		)	(1,160		)	(477		)
Net deferred tax benefit	(438		)	(1,115		)	(876		)
Income tax provision	$	547		$	2,580		$	578

On December 22, 2017, the U.S. government enacted comprehensive tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"), which significantly revises U.S. corporate income taxation by, among other things, lowering the U.S. corporate income tax rate from 35.0 percent to 21.0 percent effective January 1, 2018, broadening the base of taxation, implementing a territorial tax system, and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. 

The Company has recorded a cumulative income tax charge associated with the Tax Act totaling $2.4 billion. The $2.4 billion charge is made up of the following components:

• A $2.4 billion charge associated with the one-time repatriation tax based on post-1986 undistributed earnings and profits not previously subject to U.S. income tax and whether such earnings were held in cash or other specified assets.

• A $118 million charge resulting from the removal of the permanent reinvestment assertion on earnings and profits through April 27, 2018 for entities subject to the one-time repatriation tax.

• A $75 million net benefit associated with the remeasurement of U.S. Federal deferred tax assets, liabilities, and valuation allowances, and impacts from the decrease in the U.S. statutory tax rate.

The Company made the accounting policy election to treat taxes due on U.S. inclusions in taxable income related to Global Intangible Low-Taxed Income (GILTI) as a current period expense when incurred (the "period cost method").

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Notes to Consolidated Financial Statements (Continued)

Tax assets (liabilities), shown before jurisdictional netting of deferred tax assets (liabilities), are comprised of the following:

(in millions)	April 26, 2019			April 27, 2018
Deferred tax assets:
Net operating loss, capital loss, and credit carryforwards	$	6,574		$	7,463
Other accrued liabilities	389			410
Accrued compensation	315			209
Pension and post-retirement benefits	300			256
Stock-based compensation	162			190
Other	339			332
Inventory	194			207
Federal and state benefit on uncertain tax positions	83			67
Interest limitation	111			—
Unrealized loss on available-for-sale securities and derivative financial instruments	17			93
Gross deferred tax assets	8,484			9,227
Valuation allowance	(6,300		)	(7,166		)
Total deferred tax assets	2,184			2,061
Deferred tax liabilities:
Intangible assets	(1,614		)	(1,697		)
Realized loss on derivative financial instruments	(70		)	(69		)
Other	(152		)	(143		)
Accumulated depreciation	(38		)	(38		)
Outside basis difference of subsidiaries	(119		)	(131		)
Total deferred tax liabilities	(1,993		)	(2,078		)
Prepaid income taxes	363			406
Income tax receivables	335			315
Tax assets, net	$	889		$	704
Reported as (after valuation allowance and jurisdictional netting):
Other current assets	$	648		$	662
Tax assets	1,519			1,465
Deferred tax liabilities	(1,278		)	(1,423		)
Tax assets, net	$	889		$	704

No deferred taxes have been provided on the approximately $64.1 billion and $61.0 billion of undistributed earnings of the Company’s subsidiaries at April 26, 2019 and April 27, 2018, respectively, since these earnings have been, and under current plans will continue to be, permanently reinvested in these subsidiaries. During fiscal year 2018, the Company removed its permanently reinvested assertion on the undistributed earnings of certain foreign subsidiaries with a U.S. parent which were subject to the transition tax. The Company removed the assertion for all earnings of such subsidiaries through April 27, 2018 and reasserted for earnings generated in subsequent fiscal years. Due to the number of legal entities and jurisdictions involved, the complexity of the legal entity structure of the Company, and the complexity of the tax laws in the relevant jurisdictions, the Company believes it is not practicable to estimate, within any reasonable range, the amount of additional taxes which may be payable upon distribution of these undistributed earnings.

At April 26, 2019, the Company had approximately $26.2 billion of net operating loss carryforwards in certain non-U.S. jurisdictions, of which $22.9 billion have no expiration, and the remaining $3.3 billion will expire during fiscal years 2020 through 2039. Included in these net operating loss carryforwards are $18.1 billion of net operating losses related to a subsidiary of the Company, substantially all of which were recorded in fiscal 2008 as a result of the receipt of a favorable tax ruling from certain non-U.S. taxing authorities. The Company has recorded a full valuation allowance against these net operating losses, as management does not believe that it is more likely than not that these net operating losses will be utilized. Certain of the remaining non-U.S.

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net operating loss carryforwards of $8.1 billion have a valuation allowance recorded against the carryforwards, as management does not believe that it is more likely than not that these net operating losses will be utilized.

At April 26, 2019, the Company had $682 million of U.S. federal net operating loss carryforwards, which will expire during fiscal years 2020 through 2036. For U.S. state purposes, the Company had $1.3 billion of net operating loss carryforwards at April 26, 2019, which will expire during fiscal years 2020 through 2039.

At April 26, 2019, the Company also had $178 million of tax credits available to reduce future income taxes payable, of which $66 million have no expiration. The remaining credits expire during fiscal years 2020 through 2039.

The Company has established valuation allowances of $6.3 billion and $7.2 billion at April 26, 2019 and April 27, 2018, respectively, primarily related to the uncertainty of the utilization of certain deferred tax assets which are primarily comprised of tax loss and credit carryforwards in various jurisdictions. The decrease in the valuation allowance during fiscal year 2019 is primarily related to tax rate changes and the effects of currency fluctuations. These valuation allowances would result in a reduction to the income tax provision in the consolidated statements of income if they are ultimately not required.

The Company’s effective income tax rate varied from the U.S. federal statutory tax rate as follows:

	Fiscal Year
	2019		2018		2017
U.S. federal statutory tax rate	21.0	%	30.5	%	35.0	%
Increase (decrease) in tax rate resulting from:
U.S. state taxes, net of federal tax benefit	0.9		0.8		1.0
Research and development credit	(1.2	)	(0.8	)	(0.9	)
Puerto Rico Excise Tax	(1.6	)	(1.1	)	(1.5	)
International	(10.7	)	(18.9	)	(27.9	)
U.S. Tax Reform	0.2		43.0		—
Stock based compensation	(1.0	)	(1.0	)	—
Other, net	(0.2	)	3.0		(1.0	)
Divestiture related	—		(3.8	)	—
Certain tax adjustments	(1.0	)	(8.9	)	4.4
U.S. tax on foreign earnings	4.1		2.7		3.5
Effective tax rate	10.5	%	45.5	%	12.6	%

During fiscal year 2019, certain tax adjustments of $40 million, recognized in income tax provision in the consolidated statements of income, included the following:

• A net benefit of $30 million associated with the finalization of the transition tax liability and the Tax Act impact to deferred tax assets, liabilities, and valuation allowances.

• A charge of $42 million related to the recognition of a prepaid tax expense resulting from the reduction in the U.S. statutory tax rate under the Tax Act and the current year sale of U.S. manufactured inventory held as of April 27, 2018.

• A benefit of $32 million related to intercompany legal entity restructuring.

• A net benefit of $20 million with the finalization of certain income tax aspects of the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses.

During fiscal year 2018, certain tax adjustments of $1.9 billion, recognized in income tax provision in the consolidated statements of income, included the following:

• A net charge of $2.4 billion associated with U.S. tax reform, inclusive of the transition tax, remeasurement of U.S. Federal deferred tax assets and liabilities, and the decrease in the U.S. statutory tax rate.

• A charge of $73 million associated with an internal reorganization of certain foreign subsidiaries.

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Notes to Consolidated Financial Statements (Continued)

• A net benefit of $579 million associated with the intercompany sale of intellectual property.

During fiscal year 2017, certain tax adjustments of $202 million, recognized in income tax provision in the consolidated statements of income, included the following:

• A charge of $404 million associated with the IRS resolution for the Ardian, CoreValve, Inc., Ablation Frontiers, Inc., PEAK Surgical, Inc. and Salient Surgical Technologies, Inc. acquisition-related issues and the allocation of income between Medtronic, Inc. and its wholly owned subsidiary operating in Puerto Rico for certain businesses. This resolution does not include the businesses that are the subject of the Medtronic, Inc. U.S. Tax Court case for fiscal years 2005 and 2006.

• A net charge of $125 million associated with the divestiture of a portion of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses. The net charge primarily relates to the tax effect from the recognition of the outside basis difference of certain subsidiaries, which are included in the expected divestiture.

• A charge of $86 million associated with the IRS’s disallowance of the utilization of certain net operating losses, along with the recognition of a valuation allowance against the net operating loss deferred tax asset, which were recognized during the year.

• A charge of $18 million as a result of the redemption of an intercompany minority interest during the year.

• A benefit of $431 million as the result of the resolution of Covidien's previously disclosed Tyco International plc intercompany debt issues with the U.S. Tax Court and the Appeals Division of the IRS.

Currently, the Company’s operations in Puerto Rico, Switzerland, Singapore, Dominican Republic, Costa Rica, China, and Israel have various tax holidays and tax incentive grants. The tax reductions as compared to the local statutory rate favorably impacted earnings by $437 million, $446 million, and $475 million in fiscal years 2019, 2018, and 2017, respectively, and earnings per diluted share by $0.32, $0.33, and $0.34 in fiscal years 2019, 2018, and 2017, respectively. The tax holidays are conditional upon the Company meeting certain thresholds required under statutory law. The tax incentive grants, unless extended, will expire between fiscal years 2020 and 2030. The Company’s historical practice has been to renew, extend, or obtain new tax incentive grants upon expiration of existing tax incentive grants. If the Company is not able to renew, extend, or obtain new tax incentive grants, the expiration of existing tax incentive grants could have a material impact on the Company’s financial results in future periods. The tax incentive grants which expired during fiscal year 2019 did not have a material impact on the Company's consolidated financial statements.

The Company had $1.8 billion, $1.7 billion, and $1.9 billion of gross unrecognized tax benefits at April 26, 2019, April 27, 2018, and April 28, 2017, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal years 2019, 2018, and 2017 is as follows:

	Fiscal Year
(in millions)	2019			2018			2017
Gross unrecognized tax benefits at beginning of fiscal year	$	1,727		$	1,896		$	2,703
Gross increases:
Prior year tax positions	34			13			147
Current year tax positions	109			63			75
Acquisitions	—			—			4
Gross decreases:
Prior year tax positions	(14		)	(120		)	(538		)
Settlements	—			(80		)	(467		)
Statute of limitation lapses	(20		)	(45		)	(28		)
Gross unrecognized tax benefits at end of fiscal year	1,836			1,727			1,896
Cash advance paid to taxing authorities	(859		)	(859		)	—
Gross unrecognized tax benefits at end of fiscal year, net of cash advance	$	977		$	868		$	1,896

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Notes to Consolidated Financial Statements (Continued)

If all of the Company’s unrecognized tax benefits at April 26, 2019, April 27, 2018, and April 28, 2017 were recognized, $1.8 billion, $1.7 billion, and $1.8 billion would impact the Company’s effective tax rate, respectively. Although the Company believes that it has adequately provided for liabilities resulting from tax assessments by taxing authorities, positions taken by these tax authorities could have a material impact on the Company’s effective tax rate in future periods. The Company has recorded gross unrecognized tax benefits, net of cash advance, of $977 million as a noncurrent liability which is not expected to decrease within the next 12 months.

The Company recognizes interest and penalties related to income tax matters in income tax provision in the consolidated statements of income and records the liability in the current or noncurrent accrued income taxes in the consolidated balance sheets, as appropriate. The Company had $172 million, $128 million, and $360 million of accrued gross interest and penalties at April 26, 2019, April 27, 2018, and April 28, 2017, respectively. During fiscal years 2019, 2018, and 2017, the Company recognized gross interest expense (income) of approximately $48 million, $84 million, and $(208) million, respectively, in income tax provision in the consolidated statements of income.

During fiscal year 2018, the Company made a $1.1 billion advance payment to the IRS in connection with certain tax matters for fiscal years 2005 through 2014. This payment was comprised of $859 million of tax and $285 million of interest.

The Company’s reserves for uncertain tax positions related to unresolved matters with the IRS and other taxing authorities. These reserves are subject to a high degree of estimation and management judgment. Resolution of these significant unresolved matters, or positions taken by the IRS or other tax authorities during future tax audits, could have a material impact on the Company’s financial results in future periods. The Company continues to believe that its reserves for uncertain tax positions are appropriate and that it has meritorious defenses for its tax filings and will vigorously defend them during the audit process, appellate process, and through litigation in courts, as necessary.

The major tax jurisdictions where the Company conducts business which remain subject to examination are as follows:

Jurisdiction	Earliest Year Open
United States - federal and state	1998
Brazil	2014
Canada	2011
China	2009
Costa Rica	2015
Dominican Republic	2016
Germany	2014
India	2002
Ireland	2012
Israel	2010
Italy	2005
Japan	2017
Luxembourg	2013
Mexico	2005
Puerto Rico	2011
Singapore	2013
Switzerland	2012
United Kingdom	2016

See Note 19 for additional information regarding the status of current tax audits and proceedings.

15. Earnings Per Share

Earnings per share is calculated using the two-class method, as the Company's A Preferred Shares are considered participating securities. Accordingly, earnings are allocated to both ordinary shares and participating securities in determining earnings per ordinary share. Due to the limited number of A Preferred Shares outstanding, this allocation had no effect on the ordinary earnings

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per share; therefore, it is not presented below. Basic earnings per share is computed based on the weighted average number of ordinary shares outstanding. Diluted earnings per share is computed based on the weighted number of ordinary shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive ordinary shares been issued, and reduced by the number of shares the Company could have repurchased with the proceeds from issuance of the potentially dilutive shares. Potentially dilutive ordinary shares include stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan.

The table below sets forth the computation of basic and diluted earnings per share:

	Fiscal Year
(in millions, except per share data)	2019		2018		2017
Numerator:
Net income attributable to ordinary shareholders	$	4,631	$	3,104	$	4,028
Denominator:
Basic – weighted average shares outstanding	1,346.4		1,356.7		1,378.9
Effect of dilutive securities:
Employee stock options	7.6		7.9		9.0
Employee restricted stock units	3.2		3.3		3.4
Other	0.3		0.3		0.1
Diluted – weighted average shares outstanding	1,357.5		1,368.2		1,391.4
Basic earnings per share	$	3.44	$	2.29	$	2.92
Diluted earnings per share	$	3.41	$	2.27	$	2.89

The calculation of weighted average diluted shares outstanding excludes options to purchase approximately 7 million, 10 million, and 7 million ordinary shares in fiscal years 2019, 2018, and 2017, respectively, because their effect would have been anti-dilutive on the Company’s earnings per share.

16. Retirement Benefit Plans

The Company sponsors various retirement benefit plans, including defined benefit pension plans, post-retirement medical plans, defined contribution savings plans, and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. The expense related to these plans was $539 million, $552 million, and $602 million in fiscal years 2019, 2018, and 2017, respectively.

In the U.S., the Company maintains a qualified pension plan designed to provide guaranteed minimum retirement benefits to all eligible U.S. employees. Pension coverage for non-U.S. employees is provided, to the extent deemed appropriate, through separate plans. In addition to the benefits provided under the qualified pension plan, retirement benefits associated with wages in excess of the IRS allowable limits are provided to certain employees under a non-qualified plan. U.S. and Puerto Rico employees are also eligible to receive a medical benefit component, in addition to normal retirement benefits, through the Company’s post-retirement benefits.

At April 26, 2019 and April 27, 2018, the net underfunded status of the Company’s benefit plans was $1.1 billion and $942 million, respectively.

Effective May 1, 2019, the Company split the U.S. Pension Plan (Medtronic Retirement Plan) into two new plans. The plan split has no impact to participant benefits, or to the accumulated benefit obligation as of April 26, 2019.

During fiscal year 2017, the company offered certain eligible U.S. employees voluntary early retirement packages. The acceptance of this offer by eligible U.S. employees caused incremental expenses of $73 million to be recognized during fiscal year 2017. Of this amount, $60 million related to U.S. pension benefits, $7 million related to U.S. post-retirement benefits, $4 million related to defined contribution plans, and $2 million related to cash payments and administrative fees.

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Medtronic plc

Notes to Consolidated Financial Statements (Continued)

Defined Benefit Pension Plans The change in benefit obligation and funded status of the Company’s U.S. and Non-U.S. pension benefits are as follows:

	U.S. Pension Benefits						Non-U.S. Pension Benefits
	Fiscal Year						Fiscal Year
(in millions)	2019			2018			2019			2018
Accumulated benefit obligation at end of year:	$	3,121		$	2,943		$	1,621		$	1,580
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	3,202		$	3,232		$	1,791		$	1,734
Service cost	109			116			59			67
Interest cost	129			117			30			28
Employee contributions	—			—			12			12
Plan curtailments and settlements	—			(168		)	(5		)	(8		)
Actuarial loss (gain)	54			12			119			(74		)
Benefits paid	(100		)	(107		)	(49		)	(51		)
Currency exchange rate changes and other	10			—			(125		)	146
Divestiture	—			—			—			(63		)
Projected benefit obligation at end of year	$	3,404		$	3,202		$	1,832		$	1,791
Change in plan assets:
Fair value of plan assets at beginning of year	$	2,661		$	2,479		$	1,404		$	1,235
Actual return on plan assets	64			243			62			67
Employer contributions	93			215			78			90
Employee contributions	—			—			12			13
Plan settlements	—			(168		)	(3		)	(4		)
Benefits paid	(100		)	(108		)	(49		)	(51		)
Currency exchange rate changes and other	10			—			(95		)	108
Divestiture	—			—			—			(54		)
Fair value of plan assets at end of year	$	2,728		$	2,661		$	1,409		$	1,404
Funded status at end of year:
Fair value of plan assets	$	2,728		$	2,661		$	1,409		$	1,404
Benefit obligations	3,404			3,202			1,832			1,791
Underfunded status of the plans	(676		)	(541		)	(423		)	(387		)
Recognized liability	$	(676	)	$	(541	)	$	(423	)	$	(387	)
Amounts recognized on the consolidated balance sheets consist of:
Non-current assets	$	—		$	—		$	31		$	16
Current liabilities	(18		)	(17		)	(8		)	(8		)
Non-current liabilities	(658		)	(524		)	(446		)	(395		)
Recognized liability	$	(676	)	$	(541	)	$	(423	)	$	(387	)
Amounts recognized in accumulated other comprehensive loss:
Prior service cost (benefit)	$	2		$	2		$	(7	)	$	(9	)
Net actuarial loss	1,216			1,088			452			380
Ending balance	$	1,218		$	1,090		$	445		$	371

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In certain countries outside the U.S., fully funding pension plans is not a common practice, as funding provides no income tax benefit. Consequently, certain pension plans were partially funded at April 26, 2019 and April 27, 2018. U.S. and non-U.S. plans with accumulated benefit obligations in excess of plan assets consist of the following:

	Fiscal Year
(in millions)	2019		2018
Accumulated benefit obligation	$	4,683	$	4,110
Projected benefit obligation	4,822		4,282
Plan assets at fair value	3,829		3,472

Plans with projected benefit obligations in excess of plan assets consist of the following:

	Fiscal Year
(in millions)	2019		2018
Projected benefit obligation	$	4,963	$	4,736
Plan assets at fair value	3,833		3,793

The net periodic benefit cost of the plans include the following components:

	U.S. Pension Benefits									Non-U.S. Pension Benefits
	Fiscal Year									Fiscal Year
(in millions)	2019			2018			2017			2019			2018			2017
Service cost	$	109		$	116		$	117		$	59		$	67		$	70
Interest cost	129			117			109			30			28			26
Expected return on plan assets	(215		)	(205		)	(195		)	(57		)	(53		)	(48		)
Amortization of prior service cost	1			1			1			(1		)	—			(1		)
Amortization of net actuarial loss	76			82			88			12			18			17
Settlement loss (gain)	—			16			—			(2		)	—			—
Special termination benefits	—			—			60			—			—			—
Net periodic benefit cost	$	100		$	127		$	180		$	41		$	60		$	64

The other changes in plan assets and projected benefit obligations recognized in accumulated other comprehensive loss for fiscal year 2019 are as follows:

(in millions)	U.S. Pension Benefits			Non-U.S. Pension Benefits
Net actuarial gain	$	205		$	113
Amortization of prior service cost	(1		)	1
Amortization of net actuarial loss	(76		)	(12		)
Effect of exchange rates	—			(29		)
Total recognized in accumulated other comprehensive loss	$	128		$	73
Total recognized in net periodic benefit cost and accumulated other comprehensive loss	$	228		$	114

The estimated net actuarial loss that will be amortized from accumulated other comprehensive loss into net periodic benefit cost, before tax, in fiscal year 2020 for U.S. and non-U.S. pension benefits is expected to be $57 million and $13 million, respectively.

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The actuarial assumptions are as follows:

	U.S. Pension Benefits						Non-U.S. Pension Benefits
	Fiscal Year						Fiscal Year
	2019		2018		2017		2019		2018		2017
Critical assumptions – projected benefit obligation:
Discount rate	3.90% - 4.20%		4.20% - 4.35%		3.70% - 4.30%		0.40% - 13.90%		0.70% - 11.00%		0.45% - 11.40%
Rate of compensation increase	3.90	%	3.90	%	3.90	%	2.87	%	2.88	%	2.89	%
Critical assumptions – net periodic benefit cost:
Discount rate – benefit obligation	4.20% - 4.30%		4.00% - 4.30%		3.55% - 4.30%		0.50% - 11.00%		0.45% - 11.40%		0.25% - 10.20%
Discount rate – service cost	4.10% - 4.40%		3.70% - 4.45%		3.60% - 4.45%		0.50% - 11.00%		0.20% - 11.40%		0.05% - 10.20%
Discount rate – interest cost	4.00% - 4.10%		3.45% - 3.80%		2.90% - 3.80%		0.50% - 11.00%		0.45% - 11.40%		0.30% - 10.20%
Expected return on plan assets	7.90	%	7.90	%	8.20	%	4.23	%	4.20	%	4.45	%
Rate of compensation increase	3.90	%	3.90	%	3.90	%	2.88	%	2.89	%	2.83	%

The Company utilizes a full yield curve approach methodology to estimate the service and interest cost components of net periodic pension cost and net periodic post-retirement benefit cost for the Company’s pension and other post-retirement benefits. The full yield curve approach applies specific spot rates along the yield curve to their underlying projected cash flows in estimation of the cost components. The current yield curves represent high quality, long-term fixed income instruments.

The expected long-term rate of return on plan assets assumptions are determined using a building block approach, considering historical averages and real returns of each asset class. In certain countries, where historical returns are not meaningful, consideration is given to local market expectations of long-term returns.

Retirement Benefit Plan Investment Strategy The Company sponsors trusts that hold the assets for U.S. pension plans and other U.S. post-retirement benefit plans, primarily retiree medical benefits. For investment purposes, the legacy Medtronic U.S. pension and other U.S. post-retirement benefit plans are managed in an identical way, as their objectives are similar.

The Company has a Qualified Plan Committee (the Plan Committee) that sets investment guidelines for U.S. pension plans and other U.S. post-retirement benefit plans with the assistance of external consultants. These guidelines are established based on market conditions, risk tolerance, funding requirements, and expected benefit payments. The Plan Committee also oversees the investment allocation process, selects the investment managers, and monitors asset performance. As pension liabilities are long-term in nature, the Company employs a long-term total return approach to maximize the long-term rate of return on plan assets for a prudent level of risk. An annual analysis on the risk versus the return of the investment portfolio is conducted to justify the expected long-term rate of return assumption.

The investment portfolios contain a diversified allocation of investment categories, including equities, fixed income securities, hedge funds, and private equity. Securities are also diversified in terms of domestic and international, short- and long-term, growth and value styles, large cap and small cap stocks, and active and passive management.

Outside the U.S., pension plan assets are typically managed by decentralized fiduciary committees. There is significant variation in policy asset allocation from country to country. Local regulations, funding rules, and financial and tax considerations are part of the funding and investment allocation process in each country. The weighted average target asset allocations at April 26, 2019 for the plans are 38% equity securities, 30% debt securities, and 32% other.

The plans did not hold any investments in the Company’s ordinary shares at April 26, 2019 or April 27, 2018.

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The Company’s U.S. plans target asset allocations at April 26, 2019, compared to the U.S. plans actual asset allocations at April 26, 2019 and April 27, 2018 by asset category, are as follows:

U.S. Plans
	Target Allocation		Actual Allocation
	April 26, 2019		April 26, 2019		April 27, 2018
Asset Category:
Equity securities	49	%	50	%	49	%
Debt securities	32		34		32
Other	19		16		19
Total	100	%	100	%	100	%

Retirement Benefit Plan Asset Fair Values The following is a description of the valuation methodologies used for retirement benefit plan assets measured at fair value:

Short-term investments: Valued at the closing price reported in the active markets in which the individual security is traded.

U.S. government securities: Certain U.S. government securities are valued at the closing price reported in the active markets in which the individual security is traded. Other U.S. government securities are valued based on inputs other than quoted prices that are observable.

Corporate debt securities: Valued based on inputs other than quoted prices that are observable.

Equity commingled trusts: Comprised of investments in equity securities held in pooled investment vehicles. The valuations of equity commingled trusts are based on the respective net asset values which are determined by the fund daily at market close. The net asset values are calculated based on the valuation of the underlying assets which are determined using observable inputs. The net asset values are not publicly reported and funds are valued at the net asset value practical expedient.

Fixed income commingled trusts: Comprised of investments in fixed income securities held in pooled investment vehicles. The valuations of fixed income commingled trusts are based on the respective net asset values which are determined by the fund daily at market close. The net asset values are calculated based on the valuation of the underlying assets which are determined using observable inputs. The net asset values are not publicly reported and funds are valued at the net asset value practical expedient.

Partnership units: Valued based on the year-end net asset values of the underlying partnerships. The net asset values of the partnerships are based on the fair values of the underlying investments of the partnerships. Quoted market prices are used to value the underlying investments of the partnerships, where the partnerships consist of the investment pools which invest primarily in common stocks. Partnership units include partnerships, private equity investments, and real asset investments. Partnerships primarily include long/short equity and absolute return strategies. These investments may be redeemed monthly with notice periods ranging from 45 to 95 days. At April 26, 2019, there are no funds in the process of liquidation. Private equity investments consist of common stock and debt instruments of private companies. For private equity funds, the sum of the unfunded commitments at April 26, 2019 is $337 million, and the estimated liquidation period of these funds is expected to be one to 15 years. Real asset investments consist of commodities, derivatives, Real Estate Investment Trusts, and illiquid real estate holdings. These investments have redemption and liquidation periods ranging from 30 days to 10 years. At April 26, 2019, there are no real estate investments in the process of liquidation. Valuation procedures are utilized to arrive at fair value if a quoted market price is not available for a partnership investment.

Registered investment companies: Valued at net asset values which are not publicly reported. The net asset values are calculated based on the valuation of the underlying assets. The underlying assets are valued at the quoted market prices of shares held by the plan at year-end in the active market on which the individual securities are traded.

Insurance contracts: Comprised of investments in collective (group) insurance contracts, consisting of individual insurance policies. The policyholder is the employer and each member is the owner/beneficiary of their individual insurance policy. These policies are a part of the insurance company’s general portfolio and participate in the insurer’s profit-sharing policy on an excess yield basis.

The methods described above may produce fair values that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methodologies are appropriate and consistent with other market

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participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

There were no transfers between Level 1, Level 2, or Level 3 during fiscal years 2019 or 2018.

The following tables provide information by level for the retirement benefit plan assets that are measured at fair value, as defined by U.S. GAAP. See Note 1 for discussion of the fair value measurement terms of Levels 1, 2, and 3. In accordance with authoritative guidance adopted in fiscal year 2017, certain investments for which the fair value is measured using the net asset value per share (or its equivalent) practical expedient are not presented within the fair value hierarchy. The fair value amounts presented for these investments are intended to permit reconciliation to the total fair value of plan assets at April 26, 2019 and April 27, 2018.

U.S. Pension Benefits

	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 26, 2019		Level 1		Level 2		Level 3
Short-term investments	$	61	$	61	$	—	$	—	$	—
U.S. government securities	228		228		—		—		—
Corporate debt securities	144		—		144		—		—
Equity commingled trusts	1,365		—		—		—		1,365
Fixed income commingled trusts	301		—		—		—		301
Partnership units	629		—		—		629		—
	$	2,728	$	289	$	144	$	629	$	1,666

	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 27, 2018		Level 1		Level 2		Level 3
Short-term investments	$	181	$	181	$	—	$	—	$	—
U.S. government securities	181		181		—		—		—
Corporate debt securities	142		—		142		—		—
Equity commingled trusts	1,322		—		—		—		1,322
Fixed income commingled trusts	298		—		—		—		298
Partnership units	537		—		—		537		—
	$	2,661	$	362	$	142	$	537	$	1,620

The following tables provide a reconciliation of the beginning and ending balances of U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3):

(in millions)	Partnership Units
April 27, 2018	$	537
Total realized losses	(1		)
Total unrealized gains	52
Purchases and sales, net	41
April 26, 2019	$	629

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(in millions)	Partnership Units
April 28, 2017	$	468
Total realized losses	(42		)
Total unrealized gains	141
Purchases and sales, net	(30		)
April 27, 2018	$	537

Non-U.S. Pension Benefits

	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 26, 2019		Level 1		Level 2		Level 3
Registered investment companies	$	1,368	$	—	$	—	$	—	$	1,368
Insurance contracts	41		—		—		41		—
	$	1,409	$	—	$	—	$	41	$	1,368

	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 27, 2018		Level 1		Level 2		Level 3
Registered investment companies	$	1,362	$	—	$	—	$	—	$	1,362
Insurance contracts	42		—		—		42		—
	$	1,404	$	—	$	—	$	42	$	1,362

The following tables provide a reconciliation of the beginning and ending balances of non-U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3):

(in millions)	Insurance Contracts
April 27, 2018	$	42
Total unrealized gains	1
Purchases and sales, net	1
Currency exchange rate changes	(3		)
April 26, 2019	$	41

(in millions)	Insurance Contracts
April 28, 2017	$	44
Total unrealized gains	2
Purchases and sales, net	(7		)
Currency exchange rate changes	3
April 27, 2018	$	42

Retirement Benefit Plan Funding It is the Company’s policy to fund retirement costs within the limits of allowable tax deductions. During fiscal year 2019, the Company made discretionary contributions of approximately $93 million to the U.S. pension plan. Internationally, the Company contributed approximately $78 million for pension benefits during fiscal year 2019. The Company anticipates that it will make contributions of $93 million and $60 million to its U.S. pension benefit plans and non-U.S. pension benefit plans, respectively, in fiscal year 2020. Based on the guidelines under the U.S. Employee Retirement Income Security Act of 1974 and the various guidelines which govern the plans outside the U.S., the majority of anticipated fiscal year 2020 contributions

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will be discretionary. The Company believes that, along with pension assets, the returns on invested pension assets, and Company contributions, the Company will be able to meet its pension and other post-retirement obligations in the future.

Retiree benefit payments, which reflect expected future service, are anticipated to be paid as follows:

(in millions)	Gross Payments
Fiscal Year	U.S. Pension Benefits		Non-U.S. Pension Benefits
2020	$	115	$	51
2021	123		49
2022	133		51
2023	144		57
2024	154		56
2025 – 2029	954		350
Total	$	1,623	$	614

Post-retirement Benefit Plans The net periodic benefit cost associated with the Company’s post-retirement benefit plans was income of $17 million and $9 million in fiscal years 2019 and 2018, respectively, and expense of $11 million in fiscal year 2017. The Company’s projected benefit obligation for all post-retirement benefit plans was $323 million and $317 million at April 26, 2019 and April 27, 2018, respectively. The Company’s fair value of plan assets for all post-retirement benefit plans was $297 million and $303 million at April 26, 2019 and April 27, 2018, respectively.

Defined Contribution Savings Plans The Company has defined contribution savings plans that cover substantially all U.S. employees and certain non-U.S. employees. The general purpose of these plans is to provide additional financial security during retirement by providing employees with an incentive to make regular savings. Company contributions to the plans are based on employee contributions and Company performance. Expense recognized under these plans was $415 million, $374 million, and $347 million in fiscal years 2019, 2018, and 2017, respectively.

Effective May 1, 2005, the Company froze participation in the original defined benefit pension plan in the U.S. and implemented two new plans: an additional defined benefit pension plan, the Personal Pension Account (PPA), and a new defined contribution plan, the Personal Investment Account (PIA). Employees in the U.S. hired on or after May 1, 2005 but before January 1, 2016 had the option to participate in either the PPA or the PIA. Participants in the PPA receive an annual allocation of their salary and bonus on which they will receive an annual guaranteed rate of return, which is based on the ten-year Treasury bond rate. Participants in the PIA also receive an annual allocation of their salary and bonus; however, they are allowed to determine how to invest their funds among identified fund alternatives. The cost associated with the PPA is included in U.S. Pension Benefits in the tables presented earlier. The defined contribution cost associated with the PIA was approximately $54 million, $56 million, and $58 million in fiscal years 2019, 2018, and 2017, respectively.

Effective January 1, 2016, the Company froze participation in the existing defined benefit (PPA) and contribution (PIA) pension plans in the U.S. and implemented a new form of benefit under the existing defined contribution plan for legacy Covidien employees and employees in the U.S. hired on or after January 1, 2016. Participants in the Medtronic Core Contribution (MCC) also receive an annual allocation of their salary and bonus and are allowed to determine how to invest their funds among identified fund alternatives. The defined contribution cost associated with the MCC was approximately $58 million, $49 million, and $45 million and in fiscal years 2019, 2018, and 2017, respectively.

17. Leases

The Company leases office, manufacturing, and research facilities and warehouses, as well as transportation, data processing, and other equipment. A substantial number of these leases contain options that allow the Company to renew at the fair rental value on the date of renewal.

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Future minimum payments under non-cancelable operating leases at April 26, 2019 are:

(in millions) Fiscal Year	Operating Leases
2020	$	216
2021	157
2022	103
2023	61
2024	34
Thereafter	81
Total minimum lease payments	$	652

Rent expense for all operating leases was $305 million, $319 million, and $294 million in fiscal years 2019, 2018, and 2017, respectively.

18. Accumulated Other Comprehensive Loss

The following table provides changes in AOCI, net of tax and by component.

(in millions)	Unrealized (Loss) Gain on Investment Securities			Cumulative Translation Adjustments			Net Investment Hedges			Net Change in Retirement Obligations			Unrealized (Loss) Gain on Cash Flow Hedges			Total Accumulated Other Comprehensive (Loss) Income
April 28, 2017	$	(69	)	$	(1,195	)	$	(257	)	$	(1,129	)	$	37		$	(2,613	)
Other comprehensive (loss) income before reclassifications	(95		)	1,218			—			100			(272		)	951
Reclassifications	(8		)	(34		)	—			67			54			79
Other comprehensive (loss) income	(103		)	1,184			—			167			(218		)	1,030
Cumulative effect of change in accounting principle(1)	(22		)	—			—			(155		)	(26		)	(203		)
April 27, 2018	(194		)	(11		)	(257		)	(1,117		)	(207		)	(1,786		)
Other comprehensive income (loss) before reclassifications	67			(1,372		)	88			(266		)	457			(1,026		)
Reclassifications	35			—			—			75			(56		)	54
Other comprehensive income (loss)	102			(1,372		)	88			(191		)	401			(972		)
Cumulative effect of change in accounting principle(2)	47			—			—			—			—			47
April 26, 2019	$	(45	)	$	(1,383	)	$	(169	)	$	(1,308	)	$	194		$	(2,711	)

(1) The cumulative effect of change in accounting principle in fiscal year 2018 related to the Company's adoption of accounting guidance which permitted reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Act.

(2) See Note 1 to the consolidated financial statements for discussion regarding the adoption of accounting standards during fiscal year 2019.

The income tax on gains and losses on investment securities in other comprehensive income before reclassifications during fiscal years 2019, 2018, and 2017 was a benefit of $5 million, an expense of $26 million, and an expense of $41 million, respectively. During fiscal years 2019, 2018, and 2017, realized gains and losses on investment securities reclassified from AOCI were reduced by income taxes of $3 million, $4 million, and $8 million, respectively. When realized, gains and losses on investment securities reclassified from AOCI are recognized within other non-operating income, net. Refer to Note 6 for additional information.

During fiscal year 2019, the income tax benefit on cumulative translation adjustments was $7 million. During fiscal years 2018 and 2017, taxes were not provided on cumulative translation adjustments as substantially all translation adjustments relate to earnings that were intended to be indefinitely reinvested outside the U.S.

During fiscal years 2019, 2018, and 2017, there were no tax impacts on net investment hedges. Refer to Note 8 for additional information.

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The net change in retirement obligations in other comprehensive income includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost. The income tax on the net change in retirement obligations in other comprehensive income before reclassifications during fiscal years 2019, 2018, and 2017 was a benefit of $63 million, an expense of $14 million, and an expense of $41 million, respectively. During fiscal years 2019, 2018, and 2017, the gains and losses on defined benefit and pension items reclassified from AOCI were reduced by income taxes of $19 million, $27 million, and $23 million, respectively. Refer to Note 16 for additional information.

The income tax on unrealized gains and losses on cash flow hedges in other comprehensive income before reclassifications during fiscal years 2019, 2018, and 2017 was an expense of $158 million, a benefit of $132 million, and an expense of $130 million, respectively. During fiscal years 2019, 2018, and 2017, gains and losses on cash flow hedges reclassified from AOCI were reduced by income taxes of $24 million, $22 million, and $61 million, respectively. When realized, gains and losses on currency exchange rate contracts reclassified from AOCI are recognized within other operating expense, net  and gains and losses on forward starting interest rate derivatives reclassified from AOCI are recognized within interest expense. Refer to Note 8 for additional information.

19. Commitments and Contingencies

Legal Matters

The Company and its affiliates are involved in a number of legal actions involving product liability, intellectual property and commercial 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 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 April 26, 2019 and April 27, 2018, accrued litigation was approximately $0.5 billion and $0.9 billion, respectively. The ultimate cost to the Company with respect to accrued litigation could be materially different than the amount of the current estimates and accruals and could have a material adverse impact on the Company’s consolidated earnings, financial position, and/or cash flows. The Company includes accrued litigation in other accrued expenses and other liabilities on the consolidated balance sheets. While it is not possible to predict the outcome for most of the legal matters discussed below, the Company believes it is possible that the costs associated with these matters could have a material adverse impact on the Company’s consolidated earnings, financial position, and/or cash flows.

Product Liability Matters

Sprint Fidelis

In 2007, a putative class action was filed in the Ontario Superior Court of Justice in Canada seeking damages for personal injuries allegedly related to the Company's Sprint Fidelis family of defibrillation leads. On October 20, 2009, the court certified a class proceeding but denied class certification on plaintiffs' claim for punitive damages. The Company has recognized an expense for probable and estimable damages related to this matter, and during the fourth quarter of fiscal year 2019 the Company paid out previously accrued settlement amounts with no admission of liability, bringing this matter to a conclusion.

INFUSE Litigation

The Company estimated law firms representing approximately 6,000 claimants asserted or intended to assert personal injury claims against Medtronic in the U.S. state and federal courts involving the INFUSE bone graft product. As of June 1, 2017, the Company

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had reached agreements to settle substantially all of these claims, and during the fourth quarter of fiscal year 2019 the Company paid out previously accrued settlement amounts with no admission of liability, bringing this matter to a conclusion.

Pelvic Mesh Litigation

The Company is currently involved in litigation in various state and federal courts against manufacturers of pelvic mesh products alleging personal injuries resulting from the implantation of those products. Two subsidiaries of Covidien supplied pelvic mesh products to one of the manufacturers, C.R. Bard (Bard), named in the litigation. The litigation includes a federal multi-district litigation in the U.S. District Court for the Northern District of West Virginia and cases in various state courts and jurisdictions outside the U.S. Generally, complaints allege design and manufacturing claims, failure to warn, breach of warranty, fraud, violations of state consumer protection laws and loss of consortium claims. In fiscal year 2016, Bard paid the Company $121 million towards the settlement of 11,000 of these claims. In May 2017, the agreement with Bard was amended to extend the terms to apply to up to an additional 5,000 claims. That agreement does not resolve the dispute between the Company and Bard with respect to claims that do not settle, if any. As part of the agreement, the Company and Bard agreed to dismiss without prejudice their pending litigation with respect to Bard’s obligation to defend and indemnify the Company. The Company estimates law firms representing approximately 15,800 claimants have asserted or may assert claims involving products manufactured by Covidien’s subsidiaries. As of June 1, 2019, the Company had reached agreements to settle approximately 15,400 of these claims. The Company's accrued expenses for this matter are included within accrued litigation as discussed above.

Patent Litigation

Ethicon

On December 14, 2011, Ethicon filed an action against Covidien in the U.S. District Court for the Southern District of Ohio, alleging patent infringement and seeking monetary damages and injunctive relief. On January 22, 2014, the district court entered summary judgment in Covidien's favor, and the majority of this ruling was affirmed by the Federal Circuit on August 7, 2015. Following appeal, the case was remanded back to the District Court with respect to one patent. On January 21, 2016, Covidien filed a second action in the U.S. District Court for the Southern District of Ohio, seeking a declaration of non-infringement with respect to a second set of patents held by Ethicon. The court consolidated this second action with the remaining patent issues from the first action. Following consolidation of the cases, Ethicon dismissed six of the asserted patents, leaving a single asserted patent. In addition to claims of non-infringement, the Company asserts an affirmative defense of invalidity. The Company has not recognized an expense related to damages in connection with this matter, because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company is unable to reasonably estimate the range of loss, if any, that may result from this matter.

Sasso

The Company is involved in litigation in Indiana relating to certain patent and royalty disputes with Dr. Sasso under agreements originally entered into in 1999 and 2001. On November 28, 2018, a jury in Indiana state court returned a verdict against the Company for approximately $112 million. The Company has strong arguments to appeal the verdict and has filed post-trial motions and appeals with the appropriate appellate courts. The Company has not recognized an expense in connection with this matter because it does not currently believe a loss is probable under U.S. GAAP.

Shareholder Related Matters

Covidien Acquisition

On July 2, 2014, Lewis Merenstein filed a putative shareholder class action in Hennepin County, Minnesota, District Court seeking to enjoin the then-potential acquisition of Covidien. The lawsuit named Medtronic, Inc., Covidien, and each member of the Medtronic, Inc. Board of Directors at the time as defendants, and alleged that the directors breached their fiduciary duties to shareholders with regard to the then-potential acquisition. On August 21, 2014, Kenneth Steiner filed a putative shareholder class action in Hennepin County, Minnesota, District Court, also seeking an injunction to prevent the potential Covidien acquisition. In September 2014, the Merenstein and Steiner matters were consolidated and in December 2014, the plaintiffs filed a preliminary injunction motion seeking to enjoin the Covidien transaction. On March 20, 2015, the District Court issued an order and opinion granting Medtronic’s motion to dismiss the case. In May of 2015, the plaintiffs filed an appeal, and, in January of 2016, the Minnesota State Court of Appeals affirmed in part, and reversed in part. On April 19, 2016, the Minnesota Supreme Court granted the Company’s petition to review the issue of whether most of the original claims are properly characterized as direct or derivative under Minnesota law. In August of 2017, the Minnesota Supreme Court affirmed the decision of the Minnesota State Court of Appeals, sending the matter back to the trial court for further proceedings, which are ongoing. The Company has not recognized

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an expense related to damages in connection with this matter, because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company is unable to reasonably estimate the range of loss, if any, that may result from these matters.

HeartWare

On January 22, 2016, the St. Paul Teachers’ Retirement Fund Association filed a putative class action complaint (the “Complaint”) in the United States District Court for the Southern District of New York against HeartWare on behalf of all persons and entities who purchased or otherwise acquired shares of HeartWare from June 10, 2014 through January 11, 2016 (the “Class Period”). The Complaint was amended on June 29, 2016 and claims HeartWare and one of its executives violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making false and misleading statements about, among other things, HeartWare’s response to a June 2014 U.S. FDA warning letter, the development of the Miniaturized Ventricular Assist Device (MVAD) System and the proposed acquisition of Valtech Cardio Ltd. The Complaint seeks to recover damages on behalf of all purchasers or acquirers of HeartWare’s stock during the Class Period. In August of 2016, the Company acquired HeartWare. In October of 2018, the parties reached an agreement to settle this matter, and in January 2019, the settlement amount was deposited into a qualified settlement fund to be distributed following final court approval. In the fourth quarter of fiscal year 2019, the court approved the settlement, bringing this matter to a conclusion.

Environmental Proceedings

The Company is involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. These projects relate to a variety of activities, including removal of solvents, metals and other hazardous substances from soil and groundwater. The ultimate cost of site cleanup and timing of future cash flows is difficult to predict given uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods.

The Company is a successor to a company which owned and operated a chemical manufacturing facility in Orrington, Maine from 1967 until 1982, and is responsible for the costs of completing an environmental site investigation as required by the Maine Department of Environmental Protection (MDEP). MDEP served a compliance order on Mallinckrodt LLC and U.S. Surgical Corporation, subsidiaries of Covidien, in December 2008, which included a directive to remove a significant volume of soils at the site. After a hearing on the compliance order before the Maine Board of Environmental Protection (Maine Board) to challenge the terms of the compliance order, the Maine Board modified the MDEP order and issued a final order requiring removal of two landfills, capping of the remaining three landfills, installation of a groundwater extraction system and long-term monitoring of the site and the three remaining landfills.

The Company has proceeded with implementation of the investigation and remediation at the site in accordance with the MDEP order as modified by the Maine Board order.

Since the early 2000s, the Company or its predecessors have also been involved in a lawsuit filed in the U.S. District Court for the District of Maine by the Natural Resources Defense Council and the Maine People’s Alliance. Plaintiffs sought an injunction requiring the Company's predecessor to conduct extensive studies of mercury contamination of the Penobscot River and Bay and options for remediating such contamination, and to perform appropriate remedial activities, if necessary.

Following a trial in March 2002, the Court held that conditions in the Penobscot River and Bay may pose an imminent and substantial endangerment and that the Company’s predecessor was liable for the cost of performing a study of the River and Bay. Following a second trial in June 2014, the Court ordered that further engineering study and engineering design work was needed to determine the nature and extent of remediation in the Penobscot River and Bay. The Court also appointed an engineering firm to conduct such studies and issue a report on potential remediation alternatives. In connection with these proceedings, reports have been produced including a variety of cost estimates for a variety of potential remedial options. A third trial to determine the course of remediation to be pursued is scheduled to occur in November of 2019.

The Company's accrued expenses for environmental proceedings are included within accrued litigation as discussed above.

Government Matters

Since 2017, the Company has been responding to requests from the Department of Justice and U.S. Department of Health and Human Services for information about business practices relating to a neurovascular product developed and first marketed by ev3 and Covidien. The Company has provided information in response to these requests and is cooperating with the inquiry. The Company has not recognized an expense in connection with any ongoing investigation, because any such potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company is unable to reasonably estimate the range of loss, if any, that may result from the ongoing information requests.

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Income Taxes

In March 2009, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2005 and 2006. Medtronic, Inc. reached agreement with the IRS on some, but not all matters related to these fiscal years. The remaining unresolved issue for fiscal years 2005 and 2006 relates to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico, which is one of the Company's key manufacturing sites. The U.S. Tax Court reviewed this dispute, and on June 9, 2016, issued its opinion with respect to the allocation of income between the parties for fiscal years 2005 and 2006. The U.S. Tax Court generally rejected the IRS’s position, but also made certain modifications to the Medtronic, Inc. tax returns as filed. On April 21, 2017, the IRS filed their Notice of Appeal to the U.S. Court of Appeals for the 8th Circuit regarding the Tax Court Opinion. Oral argument for the Appeal occurred on March 14, 2018. The 8th Circuit Court of Appeals issued their opinion on August 16, 2018, and remanded the case back to the U.S. Tax Court for additional factual findings.

In October 2011, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2007 and 2008. Medtronic, Inc. reached agreement with the IRS on some, but not all matters related to these fiscal years. The remaining unresolved issue for fiscal years 2007 and 2008 relates to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico for the businesses that are the subject of the U.S. Tax Court Case for fiscal years 2005 and 2006.

In April 2014, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2009, 2010, and 2011. Medtronic, Inc. reached agreement with the IRS on some but not all matters related to these fiscal years. The remaining unresolved issue for fiscal years 2009, 2010, and 2011 relates to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico for the businesses that are the subject of the U.S. Tax Court Case for fiscal years 2005 and 2006.

In May 2017, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2012, 2013, and 2014. Medtronic, Inc. reached agreement with the IRS on some but not all matters related to these fiscal years. The significant issues that remain unresolved relate to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico, and proposed adjustments associated with the utilization of certain net operating losses. The Company disagrees with the IRS and will attempt to resolve these matters at the IRS Appellate level.

Medtronic, Inc.’s fiscal years 2015 and 2016 U.S. federal income tax returns are currently being audited by the IRS.

Covidien and the IRS have concluded and reached agreement on its audit of Covidien’s U.S. federal income tax returns for all tax years through 2012. The statute of limitations for Covidien’s 2013 and 2014 U.S. federal income tax returns lapsed during the first quarter of fiscal years 2018 and 2019, respectively. Covidien's fiscal year 2015 U.S. federal income tax returns are currently being audited by the IRS.

While it is not possible to predict the outcome for most of the income tax matters discussed above, the Company believes it is possible that charges associated with these matters could have a material adverse impact on the Company’s consolidated earnings, financial position, and/or cash flows.

See Note 14 for additional discussion of income taxes.

Guarantees

As a result of the acquisition of Covidien, the Company has a guarantee commitment related to certain contingent tax liabilities as a party to the Tax Sharing Agreement that was entered into on June 29, 2007, between Covidien, Tyco International (now Johnson Controls), and Tyco Electronics (now TE Connectivity), associated with the spin-off from Tyco. The Tax Sharing Agreement covers certain income tax liabilities for periods prior to and including the spin-off. Medtronic’s share of the income tax liabilities for these periods is 42 percent, with Johnson Controls and TE Connectivity share being 27 percent, and 31 percent, respectively. If Johnson Controls and TE Connectivity default on their obligations to the Company under the Tax Sharing Agreement, the Company would be liable for the entire amount of these liabilities. All costs and expenses associated with the management of these tax liabilities are being shared equally among the parties. The most significant amounts at risk under this Tax Sharing Agreement were resolved with the U.S. Tax Court and IRS Appeals resolutions reached in May 2016. However, the Tax Sharing Agreement remains in place with respect to income tax liabilities that are not the subject of such resolution, including certain state and international tax matters that remain open.

The Company has used available information to develop its best estimates for certain assets and liabilities related to periods prior to the 2007 separation, including amounts subject to or impacted by the provisions of the Tax Sharing Agreement. The actual amounts that the Company may be required to ultimately accrue or pay under the Tax Sharing Agreement, however, could vary depending upon the outcome of the unresolved tax matters. Final determination of the balances will be made in subsequent periods,

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primarily related to tax years that remain open for examination. These balances will also be impacted by the filing of final or amended income tax returns in certain jurisdictions where those returns include a combination of Tyco International, Covidien and/or Tyco Electronics legal entities for periods prior to the 2007 separation.

As part of the Company’s sale of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses to Cardinal on July 29, 2017, the Company has indemnified Cardinal for certain contingent tax liabilities related to the divested businesses that existed prior to the date of divestiture. The actual amounts that the Company may be required to ultimately accrue or pay could vary depending upon the outcome of the unresolved tax matters.

In the normal course of business, the Company and/or its affiliates periodically enter into agreements that require one or more of the Company and/or its affiliates to indemnify customers or suppliers for specific risks, such as claims for injury or property damage arising as a result of the Company or its affiliates’ products, the negligence of the Company's personnel, or claims alleging that the Company's products infringe on third-party patents or other intellectual property. The Company also offers warranties on various products. The Company’s maximum exposure under these guarantees is unable to be estimated. Historically, the Company has not experienced significant losses on these types of guarantees.

The Company believes the ultimate resolution of the above guarantees is not expected to have a material effect on the Company’s consolidated earnings, financial position, or cash flows.

20. Quarterly Financial Data (unaudited)

The table below summarizes select unaudited quarterly financial data for fiscal years 2019 and 2018:

	Fiscal Year 2019								Fiscal Year 2018
(in millions, except per share data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Net sales	$	7,384	$	7,481	$	7,546	$	8,146	$	7,390	$	7,050	$	7,369		$	8,144
Gross profit	5,180		5,278		5,281		5,663		5,038		4,927		5,175			5,746
Net income (loss)	1,077		1,120		1,271		1,182		1,009		2,013		(1,392		)	1,465
Net income (loss) attributable to Medtronic	1,075		1,115		1,269		1,172		1,016		2,017		(1,389		)	1,460
Basic earnings (loss) per share	0.79		0.83		0.95		0.87		0.75		1.49		(1.03		)	1.08
Diluted earnings (loss) per share	0.79		0.82		0.94		0.87		0.74		1.48		(1.03		)	1.07

The data in the schedule above has been intentionally rounded to the nearest million, and therefore, the quarterly amounts may not sum to the fiscal year-to-date amounts.

21. Segment and Geographic Information

The Company’s organizational structure is based upon four principal operating and reportable segments: the Cardiac and Vascular Group, the Minimally Invasive Therapies Group, the Restorative Therapies Group, and the Diabetes Group. The Company's management has chosen to organize the entity based upon therapy solutions provided by each segment. The four principal segments are strategic businesses that are managed separately, as each one develops and manufactures products and provides services oriented toward targeted therapy solutions.

The primary products and services from which the Cardiac and Vascular Group segment derives its revenues include products for the diagnosis, treatment, and management of cardiac rhythm disorders and cardiovascular disease, as well as services to diagnose, treat, and manage heart- and vascular-related disorders and diseases.

The primary products and services from which the Minimally Invasive Therapies Group segment derives its revenues include those focused on diseases of the respiratory system, gastrointestinal tract, renal system, lungs, pelvic region, kidneys, obesity, and other preventable complications.

The primary products and services from which the Restorative Therapies Group segment derives its revenues include those focused on neurostimulation therapies and drug delivery systems for the treatment of chronic pain, as well as various areas of the spine and brain, along with pelvic health and conditions of the ear, nose, and throat.

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The primary products from which the Diabetes Group segment derives its revenues include those focused on diabetes management, including insulin pumps, continuous glucose monitoring systems, insulin pump consumables, and diabetes therapy management software.

Segment disclosures are on a performance basis, consistent with internal management reporting. Net sales of the Company's segments include end-customer revenues from the sale of products the segment develops, manufactures, and distributes. There are certain corporate and centralized expenses that are not allocated to the segments. The Company's management evaluates the performance of the segments and allocates resources based on net sales and segment earnings before interest, taxes, and amortization ("Segment EBITA"). Segment EBITA represents income before income taxes, excluding interest expense, interest income, amortization of intangible assets, centralized distribution costs, certain corporate charges, and other items not allocated to the segments.

The accounting policies of the segments are the same as those described in Note 1. Certain depreciable assets may be recorded by one segment, while the depreciation expense is allocated to another segment. The allocation of depreciation expense is based on the proportion of the assets used by each segment.

The following tables present reconciliations of financial information from the segments to the applicable line items in the Company's consolidated financial statements:

Net Sales

	Fiscal Year
(in millions)	2019		2018		2017
Cardiac and Vascular Group	$	11,505	$	11,354	$	10,498
Minimally Invasive Therapies Group	8,478		8,716		9,919
Restorative Therapies Group	8,183		7,743		7,366
Diabetes Group	2,391		2,140		1,927
Total	$	30,557	$	29,953	$	29,710

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Segment EBITA

	Fiscal Year
(in millions)	2019			2018			2017
Cardiac and Vascular Group	$	4,541		$	4,460		$	4,134
Minimally Invasive Therapies Group	3,266			3,346			3,434
Restorative Therapies Group	3,323			3,058			2,868
Diabetes Group	739			634			690
Segment EBITA	11,869			11,498			11,126
Interest expense	(1,444		)	(1,146		)	(1,094		)
Interest income	283			397			366
Amortization of intangible assets	(1,764		)	(1,823		)	(1,980		)
Corporate	(1,253		)	(1,437		)	(1,232		)
Centralized distribution costs	(1,688		)	(1,936		)	(1,543		)
Restructuring and associated costs	(407		)	(107		)	(373		)
Acquisition-related items	(88		)	(132		)	(230		)
Certain litigation charges	(166		)	(61		)	(300		)
Gain/(loss) on minority investments	62			—			—
IPR&D charges	(58		)	(46		)	—
Exit of businesses	(149		)	—			—
Divestiture-related items	—			(115		)	—
Gain on sale of businesses	—			697			—
Contribution to Medtronic Foundation	—			(80		)	(100		)
Hurricane Maria	—			(34		)	—
Impact of inventory step-up	—			—			(38		)
Income before income taxes	$	5,197		$	5,675		$	4,602

Total Assets and Depreciation Expense

	Total Assets				Depreciation Expense
(in millions)	April 26, 2019		April 27, 2018		2019		2018		2017
Cardiac and Vascular Group	$	15,453	$	15,407	$	194	$	183	$	180
Minimally Invasive Therapies Group	41,186		43,002		206		217		358
Restorative Therapies Group	16,825		15,245		217		146		167
Diabetes Group	3,095		2,900		34		29		29
Segments	76,559		76,554		651		575		734
Corporate	13,135		14,839		244		246		203
Total	$	89,694	$	91,393	$	895	$	821	$	937

Geographic Information

Net sales are attributed to the country based on the location of the customer taking possession of the products or in which the services are rendered. Geographic property, plant, and equipment are attributed to the country based on the physical location of the assets.

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The following table presents net sales for fiscal years 2019, 2018, and 2017, and property, plant, and equipment, net at April 26, 2019 and April 27, 2018 for the Company's country of domicile, countries with significant concentrations, and all other countries:

	Net sales						Property, plant, and equipment, net
(in millions)	2019		2018		2017		April 26, 2019		April 27, 2018
Ireland	$	91	$	85	$	69	$	156	$	149
United States	16,194		15,875		16,663		3,122		2,927
Rest of world	14,272		13,993		12,978		1,397		1,528
Total other countries, excluding Ireland	30,466		29,868		29,641		4,519		4,455
Total	$	30,557	$	29,953	$	29,710	$	4,675	$	4,604

No single customer represented over 10 percent of the Company’s consolidated net sales in fiscal years 2019, 2018, or 2017.

22. 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. Medtronic plc and Medtronic, Inc. each have provided a full and unconditional guarantee of the obligations of Medtronic Luxco under the Senior Notes (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 and condensed consolidating statements of cash flows as of and for the fiscal years ended April 26, 2019, April 27, 2018, and April 28, 2017, and condensed consolidating balance sheets at April 26, 2019 and April 27, 2018. 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. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year.

During 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. The reorganization has been reflected as of the beginning of the earliest period presented.

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Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 26, 2019

Medtronic Senior Notes and Medtronic Luxco Senior Notes

(in millions)	Medtronic plc			Medtronic, Inc.			Medtronic Luxco			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	1,318		$	—		$	30,558		$	(1,319	)	$	30,557
Costs and expenses:
Cost of products sold	—			1,110			—			8,833			(788		)	9,155
Research and development expense	—			659			—			1,671			—			2,330
Selling, general, and administrative expense	11			1,476			—			8,931			—			10,418
Amortization of intangible assets	—			8			—			1,756			—			1,764
Restructuring charges, net	—			44			—			154			—			198
Certain litigation charges	—			55			—			111			—			166
Other operating expense (income), net	54			(2,426		)	(28		)	3,085			(427		)	258
Operating profit (loss)	(65		)	392			28			6,017			(104		)	6,268
Other non-operating (income) expense, net	—			(507		)	(808		)	(1,890		)	2,832			(373		)
Interest expense	478			2,375			511			912			(2,832		)	1,444
Equity in net (income) loss of subsidiaries	(5,167		)	(3,089		)	(4,842		)	—			13,098			—
Income (loss) before income taxes	4,624			1,613			5,167			6,995			(13,202		)	5,197
Income tax (benefit) provision	(7		)	(246		)	—			800			—			547
Net income (loss)	4,631			1,859			5,167			6,195			(13,202		)	4,650
Net income attributable to noncontrolling interests	—			—			—			(19		)	—			(19		)
Net income (loss) attributable to Medtronic	4,631			1,859			5,167			6,176			(13,202		)	4,631
Other comprehensive income (loss), net of tax	(972		)	(1,049		)	(972		)	(882		)	2,900			(975		)
Comprehensive income attributable to noncontrolling interests	—			—			—			(16		)	—			(16		)
Total comprehensive income (loss) attributable to Medtronic	$	3,659		$	810		$	4,195		$	5,297		$	(10,302	)	$	3,659

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Consolidating Statement of Comprehensive Income

Fiscal Year Ended 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
Net sales	$	—		$	1,198		$	—		$	29,952		$	(1,197	)	$	29,953
Costs and expenses:
Cost of products sold	—			971			—			8,884			(788		)	9,067
Research and development expense	—			656			—			1,600			—			2,256
Selling, general, and administrative expense	12			1,416			—			8,810			—			10,238
Amortization of intangible assets	—			8			—			1,815			—			1,823
Restructuring charges, net	—			(7		)	—			37			—			30
Certain litigation charges	—			24			—			37			—			61
Gain on sale of businesses	—			—			—			(697		)	—			(697		)
Other operating expense (income), net	52			(2,265		)	—			3,156			(408		)	535
Operating (loss) profit	(64		)	395			—			6,310			(1		)	6,640
Other non-operating (income) expense, net	—			(192		)	(482		)	(1,527		)	2,020			(181		)
Interest expense	247			1,897			234			788			(2,020		)	1,146
Equity in net (income) loss of subsidiaries	(3,408		)	(940		)	(3,160		)	—			7,508			—
Income (loss) before income taxes	3,097			(370		)	3,408			7,049			(7,509		)	5,675
Income tax (benefit) provision	(7		)	41			—			2,546			—			2,580
Net income (loss)	3,104			(411		)	3,408			4,503			(7,509		)	3,095
Net loss attributable to noncontrolling interests	—			—			—			9			—			9
Net income (loss) attributable to Medtronic	3,104			(411		)	3,408			4,512			(7,509		)	3,104
Other comprehensive income (loss), net of tax	1,030			972			1,030			954			(2,956		)	1,030
Comprehensive loss attributable to noncontrolling interests	—			—			—			9			—			9
Total comprehensive income (loss) attributable to Medtronic	$	4,134		$	561		$	4,438		$	5,466		$	(10,465	)	$	4,134

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Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 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	$	—		$	1,199		$	—		$	29,708		$	(1,197	)	$	29,710
Costs and expenses:
Cost of products sold	—			935			—			9,152			(793		)	9,294
Research and development expense	—			636			—			1,557			—			2,193
Selling, general, and administrative expense	12			1,308			—			8,698			—			10,018
Amortization of intangible assets	—			11			—			1,969			—			1,980
Restructuring charges, net	—			54			—			249			—			303
Certain litigation charges	—			—			—			300			—			300
Other operating expense (income), net	18			(2,380		)	—			3,024			(423		)	239
Operating (loss) profit	(30		)	635			—			4,759			19			5,383
Other non-operating (income) expense, net	—			(197		)	(649		)	(1,065		)	1,598			(313		)
Interest expense	113			1,652			62			865			(1,598		)	1,094
Equity in net (income) loss of subsidiaries	(4,163		)	(1,563		)	(3,576		)	—			9,302			—
Income (loss) before income taxes	4,020			743			4,163			4,959			(9,283		)	4,602
Income tax (benefit) provision	(8		)	(124		)	—			710			—			578
Net income (loss)	4,028			867			4,163			4,249			(9,283		)	4,024
Net loss attributable to noncontrolling interests	—			—			—			4			—			4
Net income (loss) attributable to Medtronic	4,028			867			4,163			4,253			(9,283		)	4,028
Other comprehensive (loss) income, net of tax	(745		)	(430		)	(745		)	(928		)	2,104			(744		)
Comprehensive loss attributable to noncontrolling interests	—			—			—			3			—			3
Total comprehensive income (loss) attributable to Medtronic	$	3,283		$	437		$	3,418		$	3,324		$	(7,179	)	$	3,283

113

Medtronic plc

Notes to Consolidated Financial Statements (Continued)

Condensed Consolidating Balance Sheet

April 26, 2019

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	$	—	$	18	$	1	$	4,374	$	—		$	4,393
Investments	—		—		—		5,455		—			5,455
Accounts receivable, net	—		—		—		6,222		—			6,222
Inventories, net	—		188		—		3,792		(227		)	3,753
Intercompany receivable	40		9,407		6		19,170		(28,623		)	—
Other current assets	10		190		3		1,941		—			2,144
Total current assets	50		9,803		10		40,954		(28,850		)	21,967
Property, plant and equipment, net	—		1,480		—		3,195		—			4,675
Goodwill	—		2,009		—		37,950		—			39,959
Other intangible assets, net	—		99		—		20,461		—			20,560
Tax assets	—		568		—		951		—			1,519
Investment in subsidiaries	64,352		71,284		65,012		—		(200,648		)	—
Intercompany loans receivable	3,000		21		27,858		35,398		(66,277		)	—
Other assets	—		216		—		798		—			1,014
Total assets	$	67,402	$	85,480	$	92,880	$	139,707	$	(295,775	)	$	89,694
LIABILITIES AND EQUITY
Current liabilities:
Current debt obligations	$	—	$	500	$	—	$	338	$	—		$	838
Accounts payable	—		481		—		1,472		—			1,953
Intercompany payable	—		11,971		7,200		9,452		(28,623		)	—
Accrued compensation	3		913		—		1,273		—			2,189
Accrued income taxes	—		—		—		567		—			567
Other accrued expenses	20		331		53		2,521		—			2,925
Total current liabilities	23		14,196		7,253		15,623		(28,623		)	8,472
Long-term debt	—		14,418		8,621		1,447		—			24,486
Accrued compensation and retirement benefits	—		1,069		—		582		—			1,651
Accrued income taxes	10		692		—		2,136		—			2,838
Intercompany loans payable	17,278		12,613		19,682		16,704		(66,277		)	—
Deferred tax liabilities	—		—		—		1,278		—			1,278
Other liabilities	—		133		—		624		—			757
Total liabilities	17,311		43,121		35,556		38,394		(94,900		)	39,482
Shareholders’ equity	50,091		42,359		57,324		101,192		(200,875		)	50,091
Noncontrolling interests	—		—		—		121		—			121
Total equity	50,091		42,359		57,324		101,313		(200,875		)	50,212
Total liabilities and equity	$	67,402	$	85,480	$	92,880	$	139,707	$	(295,775	)	$	89,694

114

Medtronic plc

Notes to Consolidated Financial Statements (Continued)

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		73,495		61,461		—		(195,337		)	—
Intercompany loans receivable	3,000		6,519		19,337		34,196		(63,052		)	—
Other assets	—		223		—		855		—			1,078
Total assets	$	63,424	$	107,862	$	80,799	$	155,268	$	(315,960	)	$	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		41,496		53,378		100,588		(195,462		)	50,720
Noncontrolling interests	—		—		—		102		—			102
Total equity	50,720		41,496		53,378		100,690		(195,462		)	50,822
Total liabilities and equity	$	63,424	$	107,862	$	80,799	$	155,268	$	(315,960	)	$	91,393

115

Medtronic plc

Notes to Consolidated Financial Statements (Continued)

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 26, 2019

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 operating activities	$	(7	)	$	4,944		$	298		$	7,691		$	(5,919	)	$	7,007
Investing Activities:
Acquisitions, net of cash acquired	—			(237		)	—			(1,590		)	—			(1,827		)
Additions to property, plant, and equipment	—			(313		)	—			(821		)	—			(1,134		)
Purchases of investments	—			—			—			(2,532		)	—			(2,532		)
Sales and maturities of investments	—			76			—			4,607			—			4,683
Capital contributions paid	(18		)	(97		)	—			—			115			—
Other investing activities, net	—			—			82			(46		)	—			36
Net cash (used in) provided by investing activities	(18		)	(571		)	82			(382		)	115			(774		)
Financing Activities:
Change in current debt obligations, net	—			—			(1,696		)	983			—			(713		)
Issuance of long-term debt	—			—			7,791			3			—			7,794
Payments on long-term debt	—			(6,182		)	—			(1,766		)	—			(7,948		)
Dividends to shareholders	(2,693		)	—			—			—			—			(2,693		)
Issuance of ordinary shares	992			—			—			—			—			992
Repurchase of ordinary shares	(2,877		)	—			—			—			—			(2,877		)
Net intercompany loan borrowings (repayments)	4,603			1,807			(6,518		)	108			—			—
Intercompany dividends paid	—			—			—			(5,919		)	5,919			—
Capital contributions received	—			—			—			115			(115		)	—
Other financing activities	—			—			43			(29		)	—			14
Net cash (used in) provided by financing activities	25			(4,375		)	(380		)	(6,505		)	5,804			(5,431		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(78		)	—			(78		)
Net change in cash and cash equivalents	—			(2		)	—			726			—			724
Cash and cash equivalents at beginning of period	—			20			1			3,648			—			3,669
Cash and cash equivalents at end of period	$	—		$	18		$	1		$	4,374		$	—		$	4,393

116

Medtronic plc

Notes to Consolidated Financial Statements (Continued)

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended 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
Operating Activities:
Net cash provided by operating activities	$	155		$	(1,567	)	$	249		$	16,419		$	(10,572	)	$	4,684
Investing Activities:
Acquisitions, net of cash acquired	—			—			—			(137		)	—			(137		)
Proceeds from sale of businesses	—			—			—			6,058			—			6,058
Additions to property, plant, and equipment	—			(340		)	—			(728		)	—			(1,068		)
Purchases of investments	—			(98		)	(25		)	(3,124		)	47			(3,200		)
Sales and maturities of investments	—			25			—			4,249			(47		)	4,227
Capital contributions paid	—			(59		)	(4,200		)	—			4,259			—
Other investing activities, net	—			—			—			(22		)	—			(22		)
Net cash (used in) provided by investing activities	—			(472		)	(4,225		)	6,296			4,259			5,858
Financing Activities:
Change in current debt obligations, net	—			—			(205		)	(44		)	—			(249		)
Issuance of long-term debt	—			—			—			21			—			21
Payments on long-term debt	—			(6,166		)	—			(1,204		)	—			(7,370		)
Dividends to shareholders	(2,494		)	—			—			—			—			(2,494		)
Issuance of ordinary shares	403			—			—			—			—			403
Repurchase of ordinary shares	(2,171		)	—			—			—			—			(2,171		)
Net intercompany loan borrowings (repayments)	4,107			8,180			4,177			(16,464		)	—			—
Intercompany dividends paid	—			—			—			(10,572		)	10,572			—
Capital contributions received	—			—			—			4,259			(4,259		)	—
Other financing activities	—			—			—			(94		)	—			(94		)
Net cash (used in) provided by financing activities	(155		)	2,014			3,972			(24,098		)	6,313			(11,954		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			114			—			114
Net change in cash and cash equivalents	—			(25		)	(4		)	(1,269		)	—			(1,298		)
Cash and cash equivalents at beginning of period	—			45			5			4,917			—			4,967
Cash and cash equivalents at end of period	$	—		$	20		$	1		$	3,648		$	—		$	3,669

117

Medtronic plc

Notes to Consolidated Financial Statements (Continued)

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 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 operating activities	$	842		$	1,902		$	302		$	4,721		$	(887	)	$	6,880
Investing Activities:
Acquisitions, net of cash acquired	—			(940		)	—			(384		)	—			(1,324		)
Additions to property, plant, and equipment	—			(369		)	—			(885		)	—			(1,254		)
Purchases of investments	—			—			—			(4,533		)	162			(4,371		)
Sales and maturities of investments	—			210			—			5,308			(162		)	5,356
Capital contributions paid	—			(248		)	—			—			248			—
Other investing activities, net	—			—			—			22			—			22
Net cash (used in) provided by investing activities	—			(1,347		)	—			(472		)	248			(1,571		)
Financing Activities:
Change in current debt obligations, net	—			—			901			5			—			906
Issuance of long-term debt	—			150			1,850			140			—			2,140
Payments on long-term debt	—			(500		)	—			(363		)	—			(863		)
Dividends to shareholders	(2,376		)	—			—			—			—			(2,376		)
Issuance of ordinary shares	428			—			—			—			—			428
Repurchase of ordinary shares	(3,544		)	—			—			—			—			(3,544		)
Net intercompany loan borrowings (repayments)	4,650			(255		)	(3,048		)	(1,347		)	—			—
Intercompany dividends paid	—			—			—			(887		)	887			—
Capital contributions received	—			—			—			248			(248		)	—
Other financing activities	—			40			—			(14		)	—			26
Net cash (used in) provided by financing activities	(842		)	(565		)	(297		)	(2,218		)	639			(3,283		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			65			—			65
Net change in cash and cash equivalents	—			(10		)	5			2,096			—			2,091
Cash and cash equivalents at beginning of period	—			55			—			2,821			—			2,876
Cash and cash equivalents at end of period	$	—		$	45		$	5		$	4,917		$	—		$	4,967

118

Medtronic plc

Notes to Consolidated Financial Statements (Continued)

Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 26, 2019

CIFSA Senior Notes

(in millions)	Medtronic plc			CIFSA			CIFSA Subsidiary Guarantors			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	—		$	—		$	30,557		$	—		$	30,557
Costs and expenses:
Cost of products sold	—			—			—			9,155			—			9,155
Research and development expense	—			—			—			2,330			—			2,330
Selling, general, and administrative expense	11			1			4			10,402			—			10,418
Amortization of intangible assets	—			—			—			1,764			—			1,764
Restructuring charges, net	—			—			—			198			—			198
Certain litigation charges	—			—			—			166			—			166
Other operating expense (income), net	54			1			(27		)	230			—			258
Operating (loss) profit	(65		)	(2		)	23			6,312			—			6,268
Other non-operating (income) expense, net	—			(44		)	(836		)	(830		)	1,337			(373		)
Interest expense	478			99			511			1,693			(1,337		)	1,444
Equity in net (income) loss of subsidiaries	(5,167		)	(3,144		)	(4,819		)	—			13,130			—
Income (loss) before income taxes	4,624			3,087			5,167			5,449			(13,130		)	5,197
Income tax (benefit) provision	(7		)	—			—			554			—			547
Net income (loss)	4,631			3,087			5,167			4,895			(13,130		)	4,650
Net income attributable to noncontrolling interests	—			—			—			(19		)	—			(19		)
Net income (loss) attributable to Medtronic	4,631			3,087			5,167			4,876			(13,130		)	4,631
Other comprehensive income (loss), net of tax	(972		)	7			(972		)	(1,060		)	2,022			(975		)
Comprehensive income attributable to noncontrolling interests	—			—			—			(16		)	—			(16		)
Total comprehensive income (loss) attributable to Medtronic	$	3,659		$	3,094		$	4,195		$	3,819		$	(11,108	)	$	3,659

119

Medtronic plc

Notes to Consolidated Financial Statements (Continued)

Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 27, 2018

CIFSA Senior Notes

(in millions)	Medtronic plc			CIFSA			CIFSA Subsidiary Guarantors			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	—		$	—		$	29,953		$	—		$	29,953
Costs and expenses:
Cost of products sold	—			—			—			9,067			—			9,067
Research and development expense	—			—			—			2,256			—			2,256
Selling, general, and administrative expense	12			1			2			10,223			—			10,238
Amortization of intangible assets	—			—			—			1,823			—			1,823
Restructuring charges, net	—			—			—			30			—			30
Certain litigation charges	—			—			—			61			—			61
Gain on sale of businesses	—			—			—			(697		)	—			(697		)
Other operating expense, net	52			1			—			482			—			535
Operating (loss) profit	(64		)	(2		)	(2		)	6,708			—			6,640
Other non-operating (income) expense, net	—			(60		)	(498		)	(346		)	723			(181		)
Interest expense	247			83			234			1,305			(723		)	1,146
Equity in net (income) loss of subsidiaries	(3,408		)	(4,105		)	(3,146		)	—			10,659			—
Income (loss) before income taxes	3,097			4,080			3,408			5,749			(10,659		)	5,675
Income tax (benefit) provision	(7		)	—			—			2,587			—			2,580
Net income (loss)	3,104			4,080			3,408			3,162			(10,659		)	3,095
Net loss attributable to noncontrolling interests	—			—			—			9			—			9
Net (income) loss attributable to Medtronic	3,104			4,080			3,408			3,171			(10,659		)	3,104
Other comprehensive income (loss), net of tax	1,030			43			1,030			1,030			(2,103		)	1,030
Comprehensive loss attributable to noncontrolling interests	—			—			—			9			—			9
Total comprehensive income (loss) attributable to Medtronic	$	4,134		$	4,123		$	4,438		$	4,201		$	(12,762	)	$	4,134

120

Medtronic plc

Notes to Consolidated Financial Statements (Continued)

Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 28, 2017

CIFSA Senior Notes

(in millions)	Medtronic plc			CIFSA			CIFSA Subsidiary Guarantors			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	—		$	—		$	29,710		$	—		$	29,710
Costs and expenses:
Cost of products sold	—			—			—			9,294			—			9,294
Research and development expense	—			—			—			2,193			—			2,193
Selling, general, and administrative expense	12			1			2			10,003			—			10,018
Amortization of intangible assets	—			—			—			1,980			—			1,980
Restructuring charges, net	—			—			—			303			—			303
Certain litigation charges	—			—			—			300			—			300
Other operating expense, net	18			1			4			216			—			239
Operating (loss) profit	(30		)	(2		)	(6		)	5,421			—			5,383
Other non-operating (income) expense, net	—			(82		)	(656		)	(380		)	805			(313		)
Interest expense	113			104			62			1,620			(805		)	1,094
Equity in net (income) loss of subsidiaries	(4,163		)	(3,736		)	(3,575		)	—			11,474			—
Income (loss) before income taxes	4,020			3,712			4,163			4,181			(11,474		)	4,602
Income tax (benefit) provision	(8		)	—			—			586			—			578
Net income (loss)	4,028			3,712			4,163			3,595			(11,474		)	4,024
Net loss attributable to noncontrolling interests	—			—			—			4			—			4
Net income (loss) attributable to Medtronic	4,028			3,712			4,163			3,599			(11,474		)	4,028
Other comprehensive (loss) income, net of tax	(745		)	(234		)	(745		)	(744		)	1,724			(744		)
Comprehensive loss attributable to noncontrolling interests	—			—			—			3			—			3
Total comprehensive income (loss) attributable to Medtronic	$	3,283		$	3,478		$	3,418		$	2,854		$	(9,750	)	$	3,283

121

Medtronic plc

Notes to Consolidated Financial Statements (Continued)

Condensed Consolidating Balance Sheet

April 26, 2019

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	$	4,392	$	—		$	4,393
Investments	—		—		—		5,455		—			5,455
Accounts receivable, net	—		—		—		6,222		—			6,222
Inventories, net	—		—		—		3,753		—			3,753
Intercompany receivable	40		—		1,374		7,212		(8,626		)	—
Other current assets	10		—		3		2,131		—			2,144
Total current assets	50		—		1,378		29,165		(8,626		)	21,967
Property, plant and equipment, net	—		—		—		4,675		—			4,675
Goodwill	—		—		—		39,959		—			39,959
Other intangible assets, net	—		—		—		20,560		—			20,560
Tax assets	—		—		—		1,519		—			1,519
Investment in subsidiaries	64,352		39,402		63,651		—		(167,405		)	—
Intercompany loans receivable	3,000		4,119		27,858		29,002		(63,979		)	—
Other assets	—		—		—		1,014		—			1,014
Total assets	$	67,402	$	43,521	$	92,887	$	125,894	$	(240,010	)	$	89,694
LIABILITIES AND EQUITY
Current liabilities:
Current debt obligations	$	—	$	—	$	—	$	838	$	—		$	838
Accounts payable	—		—		—		1,953		—			1,953
Intercompany payable	—		1,308		7,199		119		(8,626		)	—
Accrued compensation	3		—		—		2,186		—			2,189
Accrued income taxes	—		—		—		567		—			567
Other accrued expenses	20		11		60		2,834		—			2,925
Total current liabilities	23		1,319		7,259		8,497		(8,626		)	8,472
Long-term debt	—		1,354		8,621		14,511		—			24,486
Accrued compensation and retirement benefits	—		—		—		1,651		—			1,651
Accrued income taxes	10		—		—		2,828		—			2,838
Intercompany loans payable	17,278		9,320		19,682		17,699		(63,979		)	—
Deferred tax liabilities	—		—		—		1,278		—			1,278
Other liabilities	—		—		1		756		—			757
Total liabilities	17,311		11,993		35,563		47,220		(72,605		)	39,482
Shareholders’ equity	50,091		31,528		57,324		78,553		(167,405		)	50,091
Noncontrolling interests	—		—		—		121		—			121
Total equity	50,091		31,528		57,324		78,674		(167,405		)	50,212
Total liabilities and equity	$	67,402	$	43,521	$	92,887	$	125,894	$	(240,010	)	$	89,694

122

Medtronic plc

Notes to Consolidated Financial Statements (Continued)

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		31,239		60,122		—		(151,742		)	—
Intercompany loans receivable	3,000		1,291		19,337		19,436		(43,064		)	—
Other assets	—		—		—		1,078		—			1,078
Total assets	$	63,424	$	32,530	$	80,803	$	116,382	$	(201,746	)	$	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		29,015		53,378		69,349		(151,742		)	50,720
Noncontrolling interests	—		—		—		102		—			102
Total equity	50,720		29,015		53,378		69,451		(151,742		)	50,822
Total liabilities and equity	$	63,424	$	32,530	$	80,803	$	116,382	$	(201,746	)	$	91,393

123

Medtronic plc

Notes to Consolidated Financial Statements (Continued)

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 26, 2019

CIFSA Senior Notes

(in millions)	Medtronic plc			CIFSA			CIFSA Subsidiary Guarantors			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Operating Activities:
Net cash provided by operating activities	$	(7	)	$	661		$	323		$	6,780		$	(750	)	$	7,007
Investing Activities:
Acquisitions, net of cash acquired	—			—			—			(1,827		)	—			(1,827		)
Additions to property, plant, and equipment	—			—			—			(1,134		)	—			(1,134		)
Purchases of investments	—			—			—			(2,532		)	—			(2,532		)
Sales and maturities of investments	—			—			—			4,683			—			4,683
Capital contributions paid	(18		)	(6,346		)	—			—			6,364			—
Other investing activities, net	—			—			82			(46		)	—			36
Net cash (used in) provided by investing activities	(18		)	(6,346		)	82			(856		)	6,364			(774		)
Financing Activities:
Change in current debt obligations, net	—			—			(1,696		)	983			—			(713		)
Issuance of long-term debt	—			—			7,791			3			—			7,794
Payments on long-term debt	—			(732		)	—			(7,216		)	—			(7,948		)
Dividends to shareholders	(2,693		)	—			—			—			—			(2,693		)
Issuance of ordinary shares	992			—			—			—			—			992
Repurchase of ordinary shares	(2,877		)	—			—			—			—			(2,877		)
Net intercompany loan borrowings (repayments)	4,603			6,417			(6,543		)	(4,477		)	—			—
Intercompany dividend paid	—			—			—			(750		)	750			—
Capital contributions received	—			—			—			6,364			(6,364		)	—
Other financing activities	—			—			43			(29		)	—			14
Net cash (used in) provided by financing activities	25			5,685			(405		)	(5,122		)	(5,614		)	(5,431		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(78		)	—			(78		)
Net change in cash and cash equivalents	—			—			—			724			—			724
Cash and cash equivalents at beginning of period	—			—			1			3,668			—			3,669
Cash and cash equivalents at end of period	$	—		$	—		$	1		$	4,392		$	—		$	4,393

124

Medtronic plc

Notes to Consolidated Financial Statements (Continued)

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 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 operating activities	$	155		$	974		$	264		$	4,339		$	(1,048	)	$	4,684
Investing Activities:
Acquisitions, net of cash acquired	—			—			—			(137		)	—			(137		)
Proceeds from sale of businesses	—			—			—			6,058			—			6,058
Additions to property, plant, and equipment	—			—			—			(1,068		)	—			(1,068		)
Purchases of investments	—			—			(25		)	(3,200		)	25			(3,200		)
Sales and maturities of investments	—			—			—			4,252			(25		)	4,227
Capital contributions paid	—			(1,557		)	(4,200		)	—			5,757			—
Other investing activities, net	—			—			—			(22		)	—			(22		)
Net cash (used in) provided by investing activities	—			(1,557		)	(4,225		)	5,883			5,757			5,858
Financing Activities:
Change in current debt obligations, net	—			—			(205		)	(44		)	—			(249		)
Issuance of long-term debt	—			—			—			21			—			21
Payments on long-term debt	—			(1,150		)	—			(6,220		)	—			(7,370		)
Dividends to shareholders	(2,494		)	—			—			—			—			(2,494		)
Issuance of ordinary shares	403			—			—			—			—			403
Repurchase of ordinary shares	(2,171		)	—			—			—			—			(2,171		)
Net intercompany loan borrowings (repayments)	4,107			1,700			4,162			(9,969		)	—			—
Intercompany dividend paid	—			—			—			(1,048		)	1,048			—
Capital contributions received	—			—			—			5,757			(5,757		)	—
Other financing activities	—			—			—			(94		)	—			(94		)
Net cash (used in) provided by financing activities	(155		)	550			3,957			(11,597		)	(4,709		)	(11,954		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			114			—			114
Net change in cash and cash equivalents	—			(33		)	(4		)	(1,261		)	—			(1,298		)
Cash and cash equivalents at beginning of period	—			33			5			4,929			—			4,967
Cash and cash equivalents at end of period	$	—		$	—		$	1		$	3,668		$	—		$	3,669

125

Medtronic plc

Notes to Consolidated Financial Statements (Continued)

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 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 operating activities	$	842		$	1,904		$	302		$	5,829		$	(1,997	)	$	6,880
Investing Activities:
Acquisitions, net of cash acquired	—			—			—			(1,324		)	—			(1,324		)
Additions to property, plant, and equipment	—			—			—			(1,254		)	—			(1,254		)
Purchases of investments	—			—			—			(4,371		)	—			(4,371		)
Sales and maturities of investments	—			—			—			5,356			—			5,356
Capital contributions paid	—			(537		)	—			—			537			—
Other investing activities, net	—			—			—			22			—			22
Net cash (used in) provided by investing activities	—			(537		)	—			(1,571		)	537			(1,571		)
Financing Activities:
Change in current debt obligations, net	—			—			901			5			—			906
Issuance of long-term debt	—			—			1,850			290			—			2,140
Payments on long-term debt	—			—			—			(863		)	—			(863		)
Dividends to shareholders	(2,376		)	—			—			—			—			(2,376		)
Issuance of ordinary shares	428			—			—			—			—			428
Repurchase of ordinary shares	(3,544		)	—			—			—			—			(3,544		)
Net intercompany loan borrowings (repayments)	4,650			(1,542		)	(3,048		)	(60		)	—			—
Intercompany dividend paid	—			—			—			(1,997		)	1,997			—
Capital contributions received	—			—			—			537			(537		)	—
Other financing activities	—			—			—			26			—			26
Net cash (used in) provided by financing activities	(842		)	(1,542		)	(297		)	(2,062		)	1,460			(3,283		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			65			—			65
Net change in cash and cash equivalents	—			(175		)	5			2,261			—			2,091
Cash and cash equivalents at beginning of period	—			208			—			2,668			—			2,876
Cash and cash equivalents at end of period	$	—		$	33		$	5		$	4,929		$	—		$	4,967

126

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Not applicable.

Item 9A. Controls and Procedures

Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) and changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this annual report, our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) are effective.

Management’s Annual Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company (as defined in Exchange Act Rule 13a-15(f)). Management conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this evaluation, management concluded that the Company’s internal control over financial reporting was effective at April 26, 2019. Our internal control over financial reporting at April 26, 2019, has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm who has also audited our consolidated financial statements, as stated in their report in the section entitled “Report of Independent Registered Public Accounting Firm,” which expresses an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting at April 26, 2019, which is included in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.

Changes in Internal Control over Financial Reporting

The Company is deploying an enterprise resource planning (ERP) software program, SAP, to the Minimally Invasive Therapies Group. During fiscal year 2019, the Company continued the deployment of this software along with other enterprise systems, which resulted in changes to the internal controls over financial reporting for the Minimally Invasive Therapies Group in Latin America. The internal controls were updated to reflect these changes. These system deployments will continue with projected completion in fiscal year 2020. There have been no other changes in our internal control over financial reporting (as defined in Rules 13a-15(f) under the Exchange Act) during the period covered by this Annual Report on Form 10-K that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

Item 9B. Other Information

None.

127

PART III

Part III of this Annual Report on Form 10-K incorporates information by reference from the Company's 2019 definitive proxy statement, which will be filed no later than 120 days after April 26, 2019.

Item 10. Directors, Executive Officers, and Corporate Governance

The sections entitled “Proposal 1 — Election of Directors — Directors and Nominees,” “Corporate Governance — Committees of the Board and Meetings,” and “Share Ownership Information — Section 16(a) Beneficial Ownership Reporting Compliance” in the Company's Proxy Statement for our 2019 Annual General Meeting of Shareholders, which will be filed no later than 120 days after April 26, 2019, are incorporated herein by reference.

Set forth below are the names and ages of our Section 16(b) executive officers of Medtronic, as well as information regarding their positions with Medtronic, their periods of service in these capacities, and their business experiences. There are no family relationships among any of the officers named, nor is there any arrangement or understanding pursuant to which any person was selected as an officer.

Omar Ishrak, age 63, has been Chairman and Chief Executive Officer of the Company since January 2015 and of Medtronic, Inc., since June 2011. Prior to that, Mr. Ishrak served as President and Chief Executive Officer of GE Healthcare Systems, a division of GE, from 2009 to 2011. Prior to that, Mr. Ishrak was President and Chief Executive Officer of GE Healthcare Clinical Systems from 2005 to 2008 and President and Chief Executive Officer of GE Healthcare Ultrasound and BMD from 1995 to 2004. Mr. Ishrak is also a current member of the Board of Directors of Intel Corporation.

Michael J. Coyle, age 57, has been Executive Vice President and Group President, Cardiac and Vascular Group of the Company since January 2015 and of Medtronic, Inc. since December 2009. Prior to that, he served as President of the Cardiac Rhythm Management division at St. Jude from 2001 to 2007, and prior positions included serving St. Jude as President of the company’s Daig Catheter division and numerous leadership positions at Eli Lilly & Company.

Hooman C. Hakami, age 49, has been Executive Vice President and Group President, Diabetes Group of the Company since January 2015 and of Medtronic, Inc. since June 2014. Prior to that, he was President and Chief Executive Officer of Detection and Guidance Solutions at GE Healthcare from April 2012 to May 2014. Prior to that, he served as President and Chief Executive Officer of Interventional Systems from July 2009 to April 2012; Global Business Transformation leader for GE Healthcare from December 2008 to July 2009; and Vice President and General Manager, Global Ultrasound Services from June 2004 to December 2008. Mr. Hakami started his career with GE and has held the following financial roles: Chief Financial Officer for the Global Ultrasound division from 2001 to 2004; Chief Financial Officer for Clinical and Multi-vendor Services from 1999 to 2001; as well as various finance roles at GE Capital from 1994 to 1999; GE's Aerospace Division from 1992 to 1994 and GE Power Systems from 1991 to 1992.

Richard Kuntz, M.D., age 62, has been Senior Vice President and Chief Scientific, Clinical and Regulatory Officer of the Company since January 2015 and of Medtronic, Inc. since August 2009. Prior to that, he was Senior Vice President and President, Neuromodulation from October 2005 to August 2009; and prior to that, he was an interventional cardiologist and Chief of the Division of Clinical Biometrics at Brigham and Women’s Hospital and Associate Professor of Medicine and Chief Scientific Officer of the Harvard Clinical Research Institute.

Bradley E. Lerman, age 62, has been Senior Vice President, General Counsel and Corporate Secretary of the Company since January 2015 and of Medtronic, Inc. since May 2014. Prior to that, he was Executive Vice President, General Counsel and Corporate Secretary at Federal National Mortgage Association (Fannie Mae) from October 2012 to May 2014; Senior Vice President and Chief Litigation Counsel at Pfizer, Inc. from January 2009 to September 2012; Partner at Winston & Strawn from August 1998 to January 2009; partner at Kirkland & Ellis from March 1996 to July 1998; Associate Independent Counsel from October 1994 to March 1996; and Assistant U.S. Attorney in the Northern District of Illinois from February 1986 to September 1994. Mr. Lerman is also a current member of the Board of Directors of McKesson Corporation.

Geoffrey S. Martha, age 49, has been Executive Vice President and President, Restorative Therapies Group since June 2015. Mr. Martha previously served as Senior Vice President of Strategy and Business Development of the Company beginning in January 2015 and of Medtronic, Inc. beginning in August 2011. Prior to that, he served as Managing Director of Business Development at GE Healthcare from April 2007 to July 2011; General Manager for GE Capital Technology Finance Services from November 2003 to March 2007; Senior Vice President, Business Development for GE Capital Vendor Financial Services from February 2002 to October 2003; General Manager for GE Capital Colonial Pacific Leasing from February 2001 to January 2002; and Vice President, Business Development for Potomac Federal, the GE Capital federal financing investment bank from May 1998 to January 2001.

128

Karen L. Parkhill, age 53, joined the Company as Executive Vice President and Chief Financial Officer in June 2016. From 2011 to 2016, Ms. Parkhill served as Vice Chairman and Chief Financial Officer of Comerica Incorporated. Ms. Parkhill was a member of Comerica’s Management Executive Committee and the Comerica Bank Board of Directors. Prior to joining Comerica, Ms. Parkhill worked for J.P. Morgan Chase & Co. in various capacities from 1992 to 2011, including serving as Chief Financial Officer of the Commercial Banking business from 2007 to 2011. Ms. Parkhill is also a current member of the Board of Directors for the Methodist Health System in Dallas.

Carol A. Surface, age 53, has been Senior Vice President and Chief Human Resources Officer of the Company since January 2015 and of Medtronic, Inc. since September 2013. Prior to that, she was the Executive Vice President and Chief Human Resources Officer at Best Buy Co., Inc. from March 2010 to September 2013, and held a series of HR leadership roles at PepsiCo Inc., from May 2000 to March 2010.

Robert ten Hoedt, age 58, has been Executive Vice President and President, EMEA of the Company since January 2015 and of Medtronic, Inc. since May 2014. Prior to that, he was Senior Vice President and President, EMEA and Canada from 2009 to 2014; Vice President CardioVascular Europe and Central Asia from 2006 to 2009; Vice President and General Manager, Vitatron from 1999 to 2006; Gastro-Uro leader from 1994 to 1999; and Marketing Manager, Neurological from 1991 to 1994.

Robert J. White, age 56, has been Executive Vice President and President, Minimally Invasive Therapies Group of the Company since December 2017. Prior to that, he was Senior Vice President and President, Asia Pacific from January 2015 to December 2017. He had served as President, Emerging Markets, President, Respiratory and Monitoring Solutions and Vice President and General Manager of Patient Monitoring at Covidien. He also held various leadership positions at GE Healthcare and IBM.

John Liddicoat, M.D., age 55, was named Executive Vice President and President, Americas Region in September 2018. Dr. Liddicoat joined Medtronic in 2006 as Vice President of Atrial Fibrillation Technologies. In December of 2006, John was named Vice President and General Manager of the Structural Heart Disease Business. Beginning in August 2014, Dr. Liddicoat served as Senior Vice President and President, Cardiac Rhythm and Heart Failure (CRHF) Division.

Item 11. Executive Compensation

The sections entitled “Corporate Governance — Director Compensation,” “Corporate Governance — Committees of the Board and Meetings,” “Compensation Discussion and Analysis,” and “Executive Compensation” in Medtronic's Proxy Statement for the Company's 2019 Annual General Meeting of Shareholders, which will be filed no later than 120 days after April 26, 2019, are incorporated herein by reference. The section entitled “Compensation Committee Report” in Medtronic's Proxy Statement for the Company's 2019 Annual General Meeting of Shareholders, which will be filed no later than 120 days after April 26, 2019, is furnished herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

The sections entitled “Share Ownership Information – Significant Shareholders,” “Share Ownership Information – Beneficial Ownership of Management,” and “Executive Compensation — Equity Compensation Plan Information” in Medtronic's Proxy Statement for the Company's 2019 Annual General Meeting of Shareholders, which will be filed no later than 120 days after April 26, 2019, are incorporated herein by reference.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The sections entitled “Corporate Governance — Director Independence” and “Corporate Governance — Related Party Transactions and Other Matters” in Medtronic's Proxy Statement for the Company's 2019 Annual General Meeting of Shareholders, which will be filed no later than 120 days after April 26, 2019, are incorporated herein by reference.

Item 14. Principal Accounting Fees and Services

The sections entitled “Corporate Governance — Committees of the Board and Meetings” and “Audit and Non-Audit Fees” in Medtronic's Proxy Statement for the Company's 2019 Annual General Meeting of Shareholders, which will be filed no later than 120 days after April 26, 2019, are incorporated herein by reference.

129

PART IV

Item 15. Exhibits and Financial Statement Schedules

(a)	1. Financial Statement Schedules
	Schedule II. Valuation and Qualifying Accounts — years ended April 26, 2019, April 27, 2018, and April 28, 2017.
	All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.
	2. Exhibits

Exhibit No.	Description
3.1	Certificate of Incorporation of Medtronic plc (incorporated by reference to Exhibit 3.1 to Medtronic plc’s Current Report on Form 8-K, filed on January 27, 2015, File No. 001-36820).
3.2	Amended and Restated Memorandum and Articles of Association of Medtronic plc (incorporated by reference to Exhibit 3.2 to Medtronic plc’s Registration Statement on Form S-3, filed on February 6, 2017, File No. 333-215895).
4.1	Form of Indenture between Medtronic, Inc. and Wells Fargo Bank, National Association regarding 2009 offering (incorporated by reference to Exhibit 4.1 to Medtronic, Inc.’s Registration Statement on Form S-3, filed on March 9, 2009, File No. 333-157777).
4.2	First Supplemental Indenture, dated March 12, 2009, between Medtronic, Inc. and Wells Fargo Bank, National Association (including the Forms of Notes thereof) (incorporated by reference to Exhibit 4.1 to Medtronic, Inc.’s Current Report on Form 8-K, filed on March 12, 2009, File No. 001-07707).
4.3	Second Supplemental Indenture, dated March 16, 2010, between Medtronic, Inc. and Wells Fargo Bank, National Association (including the Forms of Notes thereof) (incorporated by reference to Exhibit 4.1 to Medtronic, Inc.’s Current Report on Form 8-K, filed on March 16, 2010, File No. 001-07707).
4.4	Third Supplemental Indenture, dated March 15, 2011, between Medtronic, Inc. and Wells Fargo Bank, National Association (including the Forms of Notes thereof) (incorporated by reference to Exhibit 4.1 to Medtronic, Inc.’s Current report on Form 8-K, filed on March 16, 2011, File No. 001-07707).
4.5	Fourth Supplemental Indenture, dated March 19, 2012, between Medtronic, Inc. and Wells Fargo Bank, National Association (including the Forms of Notes thereof) (incorporated by reference to Exhibit 4.2 to Medtronic, Inc.’s Current Report on Form 8-K, filed on March 20, 2012, File No. 001-07707).
4.6	Fifth Supplemental Indenture, dated March 26, 2013, between Medtronic, Inc. and Wells Fargo Bank, National Association (including the Forms of Notes thereof) (incorporated by reference to Exhibit 4.1 to Medtronic, Inc.’s Current Report on Form 8-K, filed on March 26, 2013, File No. 001-07707).
4.7	Sixth Supplemental Indenture, dated February 27, 2014, between Medtronic, Inc. and Wells Fargo Bank, National Association (including the Form of Global Note thereof) (incorporated by reference to Exhibit 4.2 to Medtronic, Inc.’s Current Report on Form 8-K, filed on February 27, 2014, File No. 001-07707).
4.8	Seventh Supplemental Indenture, dated as of January 26, 2015, by and among Medtronic plc, Medtronic, Inc., Medtronic Global Holdings S.C.A. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.2 to Medtronic plc’s Current Report on Form 8-K12B, filed on January 27, 2015, File No. 001-36820).
4.9	Indenture, dated December 10, 2014, between Medtronic, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.1 to Medtronic, Inc.’s Current Report on Form 8-K filed with the Commission on December 10, 2014, File No. 001-07707).

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4.10	First Supplemental Indenture, dated December 10, 2014, between Medtronic, Inc. and Wells Fargo Bank, National Association (including Form of Floating Rate Senior Notes due 2020, Form of 1.500% Senior Notes due 2018, Form of 2.500% Senior Notes due 2020, Form of 3.150% Senior Notes due 2022, Form of 3.500% Senior Notes due 2025, Form of 4.375% Senior Notes due 2035 and Form of 4.625% Senior Notes due 2045) (incorporated by reference to Exhibit 4.2 of Medtronic, Inc.’s Current Report on Form 8-K filed with the Commission on December 10, 2014, File No. 001-07707).
4.11	Second Supplemental Indenture, dated as of January 26, 2015, by and among Medtronic plc and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.3 to Medtronic plc’s Current Report on Form 8-K12B, filed on January 27, 2015, File No. 001-36820).
4.12	Third Supplemental Indenture, dated as of January 26, 2015, by and among Medtronic Global Holdings S.C.A. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.4 to Medtronic plc’s Current Report on Form 8-K12B, filed on January 27, 2015, File No. 001-36820).
4.13	Indenture, dated as of October 22, 2007, by and among Covidien International Finance S.A., Covidien Ltd. and Deutsche Bank Trust Company Americas (incorporated by reference to Exhibit 4.1(a) to Covidien plc’s Current Report on Form 8-K filed on October 22, 2007, File No. 001-33259).
4.14	Third Supplemental Indenture, dated as of October 22, 2007, by and among Covidien International Finance S.A., Covidien Ltd. and Deutsche Bank Trust Company Americas (incorporated by reference to Exhibit 4.1(d) to Covidien plc’s Current Report on Form 8-K filed on October 22, 2007, File No. 001-33259).
4.15	Fourth Supplemental Indenture, dated as of October 22, 2007, by and among Covidien International Finance S.A., Covidien Ltd. and Deutsche Bank Trust Company Americas (incorporated by reference to Exhibit 4.1(e) to Covidien plc’s Current Report on Form 8-K filed on October 22, 2007, File No. 001-33259).
4.16	Fifth Supplemental Indenture, dated as of June 4, 2009, by and among Covidien International Finance S.A., Covidien Ltd., Covidien plc and Deutsche Bank Trust Company Americas (incorporated by reference to Exhibit 4.1 to Covidien plc’s Current Report on Form 8-K12G3 filed on June 5, 2009, File No. 001-33259).
4.17	Sixth Supplemental Indenture, dated as of June 28, 2010, among Covidien International Finance S.A., Covidien Ltd., Covidien plc and Deutsche Bank Trust Company Americas (incorporated by reference to Exhibit 4.1 to Covidien plc’s Current Report on Form 8-K filed on June 28, 2010, File No. 001-33259).
4.18	Seventh Supplemental Indenture, dated as of May 30, 2012, among Covidien International Finance S.A., Covidien Ltd., Covidien plc and Deutsche Bank Trust Company Americas (incorporated by reference to Exhibit 4.1 to Covidien plc’s Current Report on Form 8-K filed on May 30, 2012, File No. 001-33259).
4.19	Eighth Supplemental Indenture, dated as of May 16, 2013, among Covidien International Finance S.A., Covidien Ltd., Covidien plc and Deutsche Bank Trust Company Americas (incorporated by reference to Exhibit 4.1 to Covidien plc’s Current Report on Form 8-K filed on May 16, 2013, File No. 001-33259).
4.20	Ninth Supplemental Indenture, dated as of January 26, 2015, by and among Medtronic plc, Medtronic Global Holdings S.C.A., Covidien public limited company, Covidien International Finance S.A., Covidien Ltd. and Deutsche Bank Trust Company Americas (incorporated by reference to Exhibit 4.5 to Medtronic plc’s Current Report on Form 8-K12B, filed on January 27, 2015, File No. 001-36820).
4.21	Senior Indenture, dated as of March 28, 2017, by and among Medtronic plc, Medtronic Global Holdings S.C.A., Medtronic, Inc., and Wells Fargo Bank, N.A. (incorporated by reference to Exhibit 4.1 to Medtronic plc’s Current Report on Form 8-K, filed on March 28, 2017, File No. 001-36820).
4.22	First Supplemental Indenture, dated as of March 28, 2017, by and among Medtronic plc, Medtronic Global Holdings S.C.A., Medtronic, Inc., and Wells Fargo Bank, N.A. (incorporated by reference to Exhibit 4.2 to Medtronic plc’s Current Report on Form 8-K, filed on March 28, 2017, File No. 001-36820).

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4.23	Second Supplemental Indenture, dated as of March 7, 2019, by and among Medtronic plc, Medtronic Global Holdings S.C.A., Medtronic, Inc., Wells Fargo Bank, N.A., and Elavon Financial Services DAC, UK Branch (incorporated by reference to Exhibit 4.1 to Medtronic plc’s Current Report on Form 8-K, filed on March 7, 2019, File No. 001-36820).
#4.24	Description of Registrant's Securities
10.1	Amendment and Restatement Agreement, dated as of November 7, 2014, by and among Medtronic, Inc., Medtronic plc (formerly known as Medtronic Holdings Limited), Medtronic Global Holdings S.C.A., the lenders from time to time party thereto, and Bank of America, N.A., as administrative agent and issuing bank (incorporated by reference to Exhibit 10.3 to Medtronic, Inc.’s Current Report on Form 8-K, filed on November 10, 2014, File No. 001-07707).
10.2	Amendment dated September 30, 2015, to Amended and Restated Revolving Credit Agreement, dated as of November 7, 2014, by and among Medtronic, Inc., Medtronic Holdings Limited, Medtronic Global Holdings, SCA, the lenders from time to time party thereto, and Bank of America, N.A., as administrative agent and issuing bank (incorporated by reference to Exhibit 10.2 to Medtronic plc’s Form 10-Q for the quarter ended October 30, 2015,filed on December 9, 2015, File No. 001-36820).
10.3	Tax Sharing Agreement, dated as of June 29, 2007, by and among Tyco International Ltd., Covidien Ltd. and Tyco Electronics Ltd. (incorporated by reference to Exhibit 10.1 to Covidien plc’s Current Report on Form 8-K, filed on July 5, 2007, File No. 001-33259).
10.4	Form of Deed of Indemnification (incorporated by reference to Exhibit 10.1 to Medtronic plc’s Current Report on Form 8-K12B, filed on January 27, 2015, File No. 001-36820).
10.5	Form of Indemnification Agreement (incorporated by reference to Exhibit 10.2 to Medtronic plc’s Current Report on Form 8-K12B, filed on January 27, 2015, File No. 001-36820).
*10.6	Letter Agreement by and between Medtronic, Inc. and Omar Ishrak dated May 11, 2011 (incorporated by reference to Exhibit 10.1 to Medtronic, Inc.’s Current Report on Form 8-K, filed on May 11, 2011, File No. 001-07707).
*10.7	Change of Control Severance Plan - Section 16B Officers (as amended and restated as of January 26, 2015) (incorporated by reference to Exhibit 10.14 to Medtronic plc’s Current Report on Form 8-K, filed on January 27, 2015, File No. 001-36820).
*10.8	Amendment to Letter Agreement dated May 11, 2011 by and between Medtronic, Inc. and Omar Ishrak (incorporated by reference to Exhibit 10.1 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July 29, 2011, filed September 7, 2011, File No. 001-07707).
*10.9	Amendment dated February 12, 2015 to the Letter Agreement by and between Medtronic, Inc. and Omar Ishrak dated May 11, 2011 (incorporated by reference to Exhibit 10.24 to Medtronic plc’s Quarterly Report on Form 10-Q for the quarter ended January 23, 2015, filed on February 27, 2015, File No. 001-36820).
*10.10	Letter Agreement by and between Medtronic, Inc. and Michael J. Coyle dated November 19, 2009 (incorporated by reference to Exhibit 10.55 to Medtronic, Inc.’s Annual Report on Form 10-K for the year ended April 27, 2012, filed on June 26, 2012, File No. 001-07707).
*10.11	Letter Agreement by and between Medtronic, Inc. and Carol Surface dated August 22, 2013 (incorporated by reference to Exhibit 10.44 to Medtronic, Inc.’s Annual Report on Form 10-K for the year ended April 25, 2014, filed on June 20, 2014, File No. 001-07707).
*10.12	Letter Agreement by and between Medtronic, Inc. and Hooman Hakami dated April 29, 2014 (incorporated by reference to Exhibit 10.5 of Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July 25, 2014, filed on August 29, 2014, File No. 001-07707)
*10.13	Letter Agreement by and between Medtronic, Inc. and Bradley E. Lerman dated May 2, 2014 (incorporated by reference to Exhibit 10.4 of Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July 25, 2014, filed on August 29, 2014, File No. 001-07707)
*10.14	Letter Agreement by and between Medtronic, Inc. and Karen Parkhill dated May 2, 2016 (incorporated by reference to Exhibit 10.1 to Medtronic, plc’s Current Report on Form 8-K, filed on May 4, 2016, File No. 001-36820).
*10.15	Form of Offer Letter Amendment (incorporated by reference to Exhibit 10.25 to Medtronic plc’s Quarterly Report on Form 10-Q for the quarter ended January 23, 2015, filed on February 27, 2015, File No. 001-36820).

132

*10.16	1998 Outside Director Stock Compensation Plan (as amended and restated effective as of January 1, 2008) (incorporated by reference to Exhibit 10.3 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended January 25, 2008, filed on, filed on March 4, 2008, File No. 001-07707).
*10.17	Amendment to the 1998 Outside Director Stock Compensation Plan (incorporated by reference to Exhibit 10.2 to Medtronic plc’s Current Report on Form 8-K, filed on January 27, 2015, File No. 001-36820).
*10.18	2003 Long-Term Incentive Plan (as amended and restated effective January 1, 2008) (incorporated by reference to Exhibit 10.4 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended January 28, 2008, filed on March 4, 2008, File No. 001-07707).
*10.19	Amendment to the 2003 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.3 to Medtronic plc’s Current Report on Form 8-K, filed on January 27, 2015, File No. 001-36820).
*10.20	Form of Restricted Stock Award Agreement under 2003 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.3 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended January 28, 2005, filed on March 7, 2005, File No. 001-07707).
*10.21	Form of Non-Qualified Stock Option Agreement under 2003 Long-Term Incentive Plan (four year vesting) (incorporated by reference to Exhibit 10.1 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended January 28, 2005, filed on March 7, 2005, File No. 001-07707).
*10.22	Form of Non-Qualified Stock Option Agreement under 2003 Long-Term Incentive Plan (immediate vesting) (incorporated by reference to Exhibit 10.2 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended January 28, 2005, filed on March 7, 2005, File No. 001-07707).
*10.23	Form of Restricted Stock Units Award Agreement under 2003 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.20 to Medtronic, Inc.’s Annual Report on Form 10-K for the year ended April 29, 2005, filed on June 29, 2005, File No. 001-07707).
*10.24	Form of Performance Share Award Agreement under 2003 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.21 to Medtronic, Inc.’s Annual Report on Form 10-K for the year ended April 29, 2005, filed on June 29, 2005, File No. 001-07707).
*10.25	Form of Non-Qualified Stock Option Agreement under 2003 Long-Term Incentive Plan effective June 22, 2006 (incorporated by reference to Exhibit 10.23 to Medtronic, Inc.’s Annual Report on Form 10-K for the year ended April 28, 2006, filed on June 28, 2006, File No. 001-07707).
*10.26	Form of Restricted Stock Award Agreement under 2003 Long-Term Incentive Plan effective June 22, 2006 (incorporated by reference to Exhibit 10.24 to Medtronic, Inc.’s Annual Report on Form 10-K for the year ended April 28, 2006, filed on June 28, 2006, File No. 001-07707).
*10.27	Form of Restricted Stock Unit Award Agreement under 2003 Long-Term Incentive Plan effective June 22, 2006 (incorporated by reference to Exhibit 10.25 to Medtronic, Inc.’s Annual Report on Form 10-K for the year ended April 28, 2006, filed on June 28, 2006, File No. 001-07707).
*10.28	Form of Performance Award Agreement under 2003 Long-Term Incentive Plan effective June 22, 2006 (incorporated by reference to Exhibit 10.26 to Medtronic, Inc.’s Annual Report on Form 10-K for the year ended April 28, 2006, filed on June 28, 2006, File No. 001-07707).
*10.29	Form of Restricted Stock Award Agreement under 2003 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.3 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended October 26, 2007, filed on December 4, 2007, File No. 001-07707).
*10.30	Form of Restricted Stock Unit Award Agreement under 2003 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.4 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended October 26, 2007, filed on December 4, 2007, File No. 001-07707).
*10.31	Form of Non-Qualified Stock Option Agreement under 2003 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.39 to Medtronic, Inc.’s Annual Report on Form 10-K for the year ended April 25, 2008, filed on June 24, 2008, File No. 001-07707).
*10.32	Form of Restricted Stock Unit Award Agreement under 2003 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.40 to Medtronic, Inc.’s Annual Report on Form 10-K for the year ended April 25, 2008, filed on June 24, 2008, File No. 001-07707).
*10.33	Form of Restricted Stock Unit Award Agreement under 2003 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.41 to Medtronic, Inc.’s Annual Report on Form 10-K for the year ended April 25, 2008, filed on June 24, 2008, File No. 001-07707).

133

*10.34	Israeli Amendment to the 2003 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.5 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended January 25, 2008, filed on March 4, 2008, File No. 001-07707).
*10.35	2008 Stock Award and Incentive Plan (as amended and restated effective August 27, 2009) (incorporated by reference to Exhibit 10.2 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended October 30, 2009, filed on December 9, 2009, File No. 001-07707).
*10.36	Amendment to the 2008 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.4 to Medtronic plc’s Current Report on Form 8-K, filed on January 27, 2015, File No. 001-36820).
*10.37	Form of Restricted Stock Unit Award Agreement under 2008 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.2 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July 25, 2008, filed on September 3, 2008, File No. 001-07707).
*10.38	Form of Restricted Stock Award Agreement under 2008 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.3 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July 25, 2008, filed on September 3, 2008, File No. 001-07707).
*10.39	Form of Restricted Stock Award Agreement under 2008 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.4 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July 25, 2008, filed on September 3, 2008, File No. 001-07707).
*10.40	Form of Restricted Stock Unit Award Agreement under 2008 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.5 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July 25, 2008, filed on September 3, 2008, File No. 001-07707).
*10.41	Form of Non-Qualified Stock Option Agreement under 2008 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.6 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July 25, 2008, filed on September 3, 2008, File No. 001-07707).
*10.42	Terms of Non-Employee Director Compensation under 2008 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.42 to Medtronic, Inc.’s Annual Report on Form 10-K for the year ended April 27, 2012, filed on June 26, 2012, File No. 001-07707).
*10.43	Form of Non-Employee Director Initial Option Agreement under 2008 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.1 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended October 24, 2008, filed on December 3, 2008, File No. 001-07707).
*10.44	Form of Non-Employee Director Annual Option Agreement under 2008 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.2 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended October 24, 2008, filed on December 3, 2008, File No. 001-07707).
*10.45	Form of Non-Employee Director Deferred Unit Award Agreement under 2008 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.3 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended October 24, 2008, filed on December 3, 2008, File No. 001-07707).
*10.46	Form of Non-Employee Restricted Stock Unit Award Agreement under Amended and Restated 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.65 to Medtronic plc’s Annual Report on Form 10-K for the year ended April 24, 2015, filed on June 23, 2015, File No. 001-36820).
*10.47	Israeli Amendment to the Amended and Restated 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.10 to Medtronic plc’s Current Report on Form 8-K, filed on January 27, 2015, File No. 001-36820).
*10.48	Form of Restricted Stock Award Agreement under Amended and Restated 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.1 to Medtronic plc's Quarterly Report on Form 10-K for the quarter ended July 28, 2017, filed on September 1, 2017, File No. 001-36820).
*10.49	Medtronic plc Amended and Restated 2013 Stock Award and Incentive Plan (as amended and restated generally effective December 8, 2017) (incorporated by reference to Exhibit 10.1 to Medtronic plc’s Current Report on Form 8-K, filed on December 12, 2017, File No. 001-36820).
*10.50	Form of Non-qualified Stock Option Agreement Amended and Restated 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.50 to Medtronic plc’s Annual Report on Form 10-K, filed June 22, 2018, File No. 001-36820).
*10.51	Form of Restricted Stock Unit Award Agreement Amended and Restated 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.51 to Medtronic plc’s Annual Report on Form 10-K, filed June 22, 2018, File No. 001-36820).

134

*10.52	Form of Restricted Stock Award Agreement Amended and Restated 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.52 to Medtronic plc’s Annual Report on Form 10-K, filed June 22, 2018, File No. 001-36820)
*10.53	Form of Long Term Performance Award Agreement under Amended and Restated 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.53 to Medtronic plc’s Annual Report on Form 10-K, filed June 22, 2018, File No. 001-36820).
*10.54	Form of Non-Qualified Stock Option Agreement under Amended and Restated 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.31 to Medtronic plc’s Quarterly Report on Form 10-Q for the quarter ended January 23, 2015, filed on February 27, 2015, File No. 001-36820).
*10.55	Form of Non-Employee Director Deferred Unit Award Agreement under the 2008 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.3 to Medtronic, Inc.’s Quarterly Report on Form 10-Q for the quarter ended October 24, 2008, filed on December 3, 2008, File No. 001-07707).
*10.56	Form of Non-Qualified Stock Option Agreement under 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.2 to Medtronic, Inc.’s Current Report on Form 8-K, filed on August 27, 2013, File No. 001-07707).
*10.57	Form of Restricted Stock Unit Award Agreement (U.S. Employees) under 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.3 to Medtronic, Inc.’s Current Report on Form 8-K, filed on August 27, 2013, File No. 001-07707).
*10.58	Form of Restricted Stock Unit Award Agreement (Non-U.S. Employees) under 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.4 to Medtronic, Inc.’s Current Report on Form 8-K, filed on August 27, 2013, File No. 001-07707).
*10.59	Form of Restricted Stock Unit Award Agreement (Time-Based) under 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.5 to Medtronic, Inc.’s Current Report on Form 8-K, filed on August 27, 2013, File No. 001-07707).
*10.60	Form of Restricted Stock Unit Award Agreement (Israeli-Employees) under 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.8 to Medtronic, Inc.’s Current Report on Form 8-K, filed on August 27, 2013, File No. 001-07707).
*10.61	Form of Non-Qualified Stock Option Agreement under Amended and Restated 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.48 to Medtronic plc’s Quarterly Report on Form 10-Q for the quarter ended January 23, 2015, filed on February 27, 2015, File No. 001-36820).
*10.62	Form of Restricted Stock Unit Award Agreement under Amended and Restated 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.49 to Medtronic plc’s Quarterly Report on Form 10-Q for the quarter ended January 23, 2015, filed on February 27, 2015, File No. 001-36820).
*10.63	Form of Restricted Stock Unit Award Agreement under Amended and Restated 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.50 to Medtronic plc’s Quarterly Report on Form 10-Q for the quarter ended January 23, 2015, filed on February 27, 2015, File No. 001-36820).
*10.64	Form of Restricted Stock Unit Award Agreement under Amended and Restated 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.51 to Medtronic plc’s Quarterly Report on Form 10-Q for the quarter ended January 23, 2015, filed on February 27, 2015, File No. 001-36820).
*10.65	Form of Stock Option Agreement under Amended and Restated 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.53 to Medtronic plc’s Quarterly Report on Form 10-Q for the quarter ended January 23, 2015, filed on February 27, 2015, File No. 001-36820).
*10.66	Form of Restricted Stock Unit Award Agreement under Amended and Restated 2013 Stock Award and Incentive Plan (incorporated by reference to Exhibit 10.54 to Medtronic plc’s Quarterly Report on Form 10-Q for the quarter ended January 23, 2015, filed on February 27, 2015, File No. 001-36820).
*10.67	Medtronic plc 2014 Amended and Restated Employees Stock Purchase Plan (incorporated by reference to Exhibit 10.8 to Medtronic plc’s Current Report on Form 8-K, filed on January 27, 2015, File No. 001-36820).

135

*10.68	Medtronic plc Incentive Plan (as amended and restated effective January 26, 2015) (incorporated by reference to Exhibit 10.11 to Medtronic plc’s Current Report on Form 8-K, filed on January 27, 2015, File No. 001-36820).
*10.69	Medtronic plc Supplemental Executive Retirement Plan (as restated generally effective January 26, 2015) (incorporated by reference to Exhibit 10.15 to Medtronic plc’s Current Report on Form 8-K, filed on January 27, 2015, File No. 001-36820).
*10.70	Medtronic plc Savings and Investment Plan (as amended and restated generally effective January 26, 2015) (incorporated by reference to Exhibit 4.22 to Medtronic plc’s Registration Statement on Form S-8 filed on January 28, 2015, File No. 333-201737).
*10.71	Medtronic plc Puerto Rico Employees’ Savings and Investment Plan (as amended and restated generally effective January 26, 2015) (incorporated by reference to Exhibit 4.23 to Medtronic plc’s Registration Statement on Form S-8 filed on January 28, 2015, File No. 333-201737).
*10.72	Medtronic plc Capital Accumulation Plan Deferral Program (as amended and restated generally effective January 26, 2015) (incorporated by reference to Exhibit 10.13 to Medtronic plc’s Current Report on Form 8-K, filed on January 27, 2015, File No. 001-36820).
*10.73	Capital Accumulation Plan Deferral Program (as amended and restated generally effective January 1, 2017) (incorporated by reference to Exhibit 10.1 to Medtronic plc’s Quarterly Report on Form 10-Q for the quarter ended October 28, 2016, filed on December 5, 2016, File No. 001-36820).
10.74	Amended and Restated Credit Agreement, dated as of December 12, 2018, by and among Medtronic Global Holdings, SCA, certain subsidiaries named therein, Medtronic, Inc., Medtronic PLC, the lenders from time to time party thereto, and Bank of America, N.A. as Administration Agent (incorporated by reference to Exhibit 10.1 to Medtronic plc’s Current Report on Form 8-K, filed on December 13, 2018, File No. 001-36820).
#21	List of Subsidiaries of Medtronic plc.
#23	Consent of Independent Registered Public Accounting Firm.
#24	Power of Attorney.
#31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
#31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
#32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
#32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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*Exhibits that are management contracts or compensatory plans or arrangements.

#Filed herewith

136

MEDTRONIC PLC AND SUBSIDIARIES

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS

(in millions)

			Additions						Deductions
	Balance at Beginning of Fiscal Year		Charges to Income		Charges to Other Accounts				Other Changes (Debit) Credit				Balance at End of Fiscal Year
Allowance for doubtful accounts:
Fiscal year ended April 26, 2019	$	193	$	78	$	—			$	(81	)	(a)	$	190
Fiscal year ended April 27, 2018	155		52		—				(14		)	(a)	193
Fiscal year ended April 28, 2017	161		39		—				(45		)	(a)	155
Inventory reserve:
Fiscal year ended April 26, 2019	$	452	$	224	$	—			$	(155	)	(b)	$	521
Fiscal year ended April 27, 2018	443		170		—				(161		)	(b)	452
Fiscal year ended April 28, 2017	426		155		28				(166		)	(b)	443
Deferred tax valuation allowance:
Fiscal year ended April 26, 2019	$	7,166	$	378	$	(11	)	(c)	$	(770	)	(d)	$	6,300
									(463		)	(e)
Fiscal year ended April 27, 2018	6,311		434		21			(c)	(171		)	(d)	7,166
									571			(e)
Fiscal year ended April 28, 2017	7,032		101		6			(c)	(524		)	(d)	6,311
									(304		)	(e)

(a) Primarily consists of uncollectible accounts written off, less recoveries.

(b) Primarily reflects utilization of the inventory reserve.

(c) Reflects the impact from acquisitions.

(d) Reflects carryover attribute utilization and expiration.

(e) Primarily reflects the effects of currency fluctuations.

Item 16. Form 10-K Summary

Registrants may voluntarily include a summary of information required by Form 10-K under this Item 16. The Company has not elected to include such summary information.

137

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	MEDTRONIC PUBLIC LIMITED COMPANY
Dated: June 21, 2019	By:	/s/ Omar Ishrak
		Omar Ishrak
		Chairman and
		Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, the report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

	MEDTRONIC PUBLIC LIMITED COMPANY
Dated: June 21, 2019	By:	/s/ Omar Ishrak
		Omar Ishrak
		Chairman and
		Chief Executive Officer
		(Principal Executive Officer)
Dated: June 21, 2019	By:	/s/ Karen L. Parkhill
		Karen L. Parkhill
		Executive Vice President and
		Chief Financial Officer
		(Principal Financial and  Accounting Officer)
	Directors
		Richard H. Anderson*
		Craig Arnold*
		Scott C. Donnelly*
		Andrea J. Goldsmith, Ph.D.*
		Randall J. Hogan, III*
		Omar Ishrak*
		Michael O. Leavitt*
		James T. Lenehan*
		Elizabeth G. Nabel*
		Denise M. O’Leary*
		Kendall J. Powell*

*Bradley E. Lerman, by signing his name hereto, does hereby sign this document on behalf of each of the above named directors of the registrant pursuant to powers of attorney duly executed by such persons.

Dated: June 21, 2019	By:	/s/ Bradley E. Lerman
		Bradley E. Lerman

138

EX-4.24

Exhibit 4.24

The following is a brief description of (i) the ordinary shares, par value $0.0001 per share (the “Ordinary Shares”), of Medtronic plc, a company incorporated under the laws of Ireland (“Medtronic” or “Medtronic plc”), and (ii) the Floating Rate Senior Notes due 2021, 0.000% Senior Notes due 2021, 1.125% Senior Notes due 2027, and 2.250% Senior Notes due 2039 issued by Medtronic Global Holdings S.C.A., an entity incorporated and existing under the laws of Luxembourg (“Medtronic Luxco”),which are all of the securities of Medtronic and its subsidiaries registered pursuant to Section 12 of the Securities Exchange Act of 1934 (the “Exchange Act”).

DESCRIPTION OF MEDTRONIC ORDINARY SHARES

The following description of Medtronic’s share capital is a summary. This summary does not purport to be complete and is qualified in its entirety by reference to the Irish Companies Act 2014 (as amended) (the "Irish Companies Act") and the complete text of Medtronic’s memorandum and articles of association, as they may be amended from time to time (the “Articles of Association”). Copies of the Articles of Association have been filed with the Securities and Exchange Commission (the “SEC”) as exhibit 3.1 to Medtronic’s Annual Report on Form 10-K.

Capital Structure

Authorized Share Capital

Medtronic plc is authorized to issue 2.6 billion ordinary shares, $0.0001 par value; 40 thousand euro deferred shares, €1.00 par value; 127.5 million preferred shares, $0.20 par value; and 500 thousand A preferred shares, $1.00 par value.

Medtronic may issue shares subject to the maximum authorized share capital contained in the Articles of Association. The authorized share capital may be increased or reduced by a resolution approved by a simple majority of the votes of Medtronic’s shareholders cast at a general meeting (referred to under Irish law as an “ordinary resolution”). The shares comprising the authorized share capital of Medtronic may be divided into shares of such nominal value as the resolution shall prescribe. As a matter of Irish company law, the directors of a company may issue new ordinary or preferred shares without shareholder approval once authorized to do so by the Articles of Association or by an ordinary resolution adopted by the shareholders at a general meeting. The authorization may be granted for a maximum period of five years, at which point it must be renewed by the shareholders by an ordinary resolution. Medtronic's current authorization is due to expire in January 2020 and Medtronic anticipates seeking a new authorization at its 2019 Annual General Meeting.

The rights and restrictions to which the ordinary shares, euro deferred shares and A preferred shares are subject are prescribed in the Articles of Association. The Articles of Association entitle the Medtronic board of directors, without shareholder approval, to determine the terms of the preferred shares issued by Medtronic. Preferred shares may be preferred as to dividends, rights upon liquidation or voting in such manner as the directors of Medtronic may resolve. The preferred shares may also be redeemable at the option of the holder of the preferred shares or at the option of Medtronic, and may be convertible into or exchangeable for shares of any other class or classes of Medtronic, depending on the terms of such preferred shares.

The holders of the A preferred shares are entitled in priority to any payments of dividends on any other class of shares in Medtronic to be paid a dividend in the amount per A preferred share equal to twice the dividend to be paid per ordinary share and in addition on a return of assets, whether on liquidation or otherwise, the A preferred shares entitle the holders to repayment of the capital paid up on those shares (including any share premium) in priority to any repayment of capital to the holders of any other shares. The holders of the A preferred shares are not entitled to any further participation in the assets or profits of Medtronic, nor are the holders of the A preferred shares, which are non-voting shares, entitled to receive notice of, attend, speak or vote at any general meeting of Medtronic.

The holders of euro deferred shares are not entitled to receive any dividend or distribution and are not entitled to receive notice of, attend, speak or vote at any general meeting of Medtronic. On a return of assets, the euro deferred

shares will entitle the holder only to the repayment of amounts paid up on such shares after repayment of the capital paid up on the ordinary shares plus the payment of $5,000,000 on each ordinary share. There are no euro deferred shares in issue.

Irish law does not recognize fractional shares held of record. Accordingly, the Articles of Association do not provide for the issuance of fractional shares of Medtronic, and the official Irish register of Medtronic does not reflect any fractional shares.

Whenever an alteration or reorganization of the share capital of Medtronic would result in any Medtronic shareholder becoming entitled to fractions of a share, the Medtronic board of directors may, on behalf of those shareholders that would become entitled to fractions of a share, arrange for the sale of the shares representing fractions and the distribution of the net proceeds of sale in due proportion among the shareholders who would have been entitled to the fractions.

Preemption Rights, Share Warrants and Share Options

Under Irish law certain statutory preemption rights apply automatically in favor of shareholders where shares are to be issued for cash. However, Medtronic has opted out of these preemption rights in the Articles of Association as permitted under Irish company law. Because Irish law requires this opt-out to be renewed every five years by a resolution approved by not less than 75% of the votes of the shareholders of Medtronic cast at a general meeting (referred to under Irish law as a “special resolution”), the Articles of Association provide that this opt-out must be so renewed. Medtronic's current opt-out is due to expire in January 2020 and Medtronic anticipates seeking a new opt-out at its 2019 Annual General Meeting. If the opt-out is not renewed, shares issued for cash must be offered to existing shareholders of Medtronic on a pro rata basis to their existing shareholding before the shares can be issued to any new shareholders. The statutory preemption rights do not apply where shares are issued for non-cash consideration (such as in a stock-for-stock acquisition) and do not apply to the issue of non-equity shares (that is, shares that have the right to participate only up to a specified amount in any income or capital distribution) or where shares are issued pursuant to an employee stock option or similar equity plan.

The Articles of Association of Medtronic provide that, subject to any shareholder approval requirement under any laws, regulations or the rules of any stock exchange to which Medtronic is subject, the board is authorized, from time to time, in its discretion, to grant such persons, for such periods and upon such terms as the board deems advisable, options to purchase such number of shares of any class or classes or of any series of any class as the board may deem advisable, and to cause warrants or other appropriate instruments evidencing such options to be issued. The Irish Companies Act provides that directors may issue share warrants or options without shareholder approval once authorized to do so by the Articles of Association or an ordinary resolution of shareholders. Medtronic is subject to the rules of the NYSE and the U.S. Internal Revenue Code of 1986, as amended, which require shareholder approval of certain equity plan and share issuances. Medtronic’s board of directors may issue shares upon exercise of warrants or options without shareholder approval or authorization (up to the relevant authorized share capital limit).

Dividends

Under Irish law, dividends and distributions may be made only from distributable reserves. Distributable reserves generally means accumulated realized profits less accumulated realized losses and includes reserves created by way of capital reduction. In addition, no distribution or dividend may be made unless the net assets of Medtronic are equal to, or in excess of, the aggregate of Medtronic’s called up share capital plus undistributable reserves and the distribution does not reduce Medtronic’s net assets below such aggregate. Undistributable reserves include the share premium account, the par value of Medtronic shares acquired by Medtronic and the amount by which Medtronic’s accumulated unrealized profits, so far as not previously utilized by any capitalization, exceed Medtronic’s accumulated unrealized losses, so far as not previously written off in a reduction or reorganization of capital.

The determination as to whether or not Medtronic has sufficient distributable reserves to fund a dividend must be made by reference to “relevant accounts” of Medtronic. The “relevant accounts” will be either the last set of unconsolidated annual audited financial statements or other financial statements properly prepared in accordance

with the Irish Companies Act, which give a “true and fair view” of Medtronic’s unconsolidated financial position and accord with accepted accounting practice. The relevant accounts must be filed in the Companies Registration Office (the official public registry for companies in Ireland).

The Articles of Association authorize the directors to declare dividends out of funds lawfully available for the purpose without shareholder approval. The board of directors may also recommend a dividend to be approved and declared by the Medtronic shareholders at a general meeting. The board of directors may direct that the payment be made by distribution of assets, shares or cash and no dividend issued may exceed the amount recommended by the directors. Dividends may be declared and paid in the form of cash or non-cash assets and may be paid in U.S. dollars or any other currency.

The directors of Medtronic may deduct from any dividend payable to any shareholder any amounts payable by such shareholder to Medtronic in relation to the shares of Medtronic.

The directors may also authorize Medtronic to issue shares with preferred rights to participate in dividends declared by Medtronic. The holders of preferred shares may, depending on their terms, rank senior to the Medtronic ordinary shares in terms of dividend rights and/or be entitled to claim arrears of a declared dividend out of subsequently declared dividends in priority to ordinary shareholders.

Please see “Description of Medtronic Ordinary Shares-Capital Structure-Authorized Share Capital” for additional information on dividend rights.

Share Repurchases, Redemptions and Conversions

Overview

The Articles of Association provide that any ordinary share which Medtronic has agreed to acquire will be deemed to be a redeemable share, unless the board resolves otherwise. Accordingly, for Irish company law purposes, the repurchase of ordinary shares by Medtronic may technically be effected as a redemption of those shares as described below under “Description of Medtronic Ordinary Shares-Share Repurchases, Redemptions and Conversions-Repurchases and Redemptions by Medtronic.” If the Articles of Association did not contain such provision, all repurchases by Medtronic would be subject to many of the same rules that apply to purchases of Medtronic ordinary shares by subsidiaries described below under “-Purchases by Subsidiaries of Medtronic,” including the shareholder approval requirements described below and the requirement that any on-market purchases be effected on a “recognized stock exchange.” Except where otherwise noted, references to repurchasing or buying back ordinary shares of Medtronic refer to the redemption of ordinary shares by Medtronic or the purchase of ordinary shares of Medtronic by a subsidiary of Medtronic, in each case in accordance with the Articles of Association and Irish company law as described below.

Repurchases and Redemptions by Medtronic

Under Irish law, a company may issue redeemable shares and redeem them out of distributable reserves or the proceeds of a new issue of shares for that purpose. Medtronic may only issue redeemable shares if the nominal value of the issued share capital that is not redeemable is not less than 10% of the nominal value of the total issued share capital of Medtronic. All redeemable shares must also be fully-paid. Based on the provision of the Articles of Association described above, shareholder approval will not be required to redeem Medtronic shares.

Medtronic may also be given an additional general authority by its shareholders to purchase its own shares on-market, which would take effect on the same terms and be subject to the same conditions as applicable to purchases by Medtronic’s subsidiaries as described below.

The board of directors of Medtronic may also issue preferred shares which may be redeemed at the option of either Medtronic or the shareholder, depending on the terms of such preferred shares. Please see “Description of Medtronic Ordinary Shares-Capital Structure-Authorized Share Capital” for additional information on preferred shares.

Repurchased and redeemed shares may be cancelled or held as treasury shares. The nominal value of treasury shares held by Medtronic at any time must not exceed 10% of the aggregate of the par value and share premium received in respect of the allotment of Medtronic shares together with the par value of any shares acquired by Medtronic. Medtronic may not exercise any voting rights in respect of any shares held as treasury shares. Treasury shares may be cancelled by Medtronic or re-issued subject to certain conditions.

The Articles of Association provide that Medtronic may not, directly or indirectly, purchase or agree to purchase any shares entitled to vote from a person who beneficially owns more than five percent of the voting power of Medtronic for more than the market value thereof if the shares have been beneficially owned by the person for less than two years, unless the purchase or agreement to purchase is approved at a meeting of shareholders by the affirmative vote of the holders of not less than a majority of the issued and outstanding shares of Medtronic entitled to vote or Medtronic makes an offer, of at least equal value per share, to all holders of shares of the class or series and to all holders of any class or series into which the securities may be converted.

Purchases by Subsidiaries of Medtronic

Under Irish law, an Irish or non-Irish subsidiary may purchase shares of Medtronic either on-market or off-market. For a subsidiary of Medtronic to make on-market purchases of Medtronic ordinary shares, the shareholders of Medtronic must provide general authorization for such purchase by way of ordinary resolution. However, as long as this general authority has been granted, no specific shareholder authority for a particular on-market purchase by a subsidiary of Medtronic ordinary shares is required. For an off-market purchase by a subsidiary of Medtronic, the proposed purchase contract must be authorized by special resolution of the shareholders before the contract is entered into. The person whose shares are to be bought back cannot vote in favor of the special resolution and, from the date of the notice of the meeting at which the resolution approving the contract is to be proposed, the purchase contract must be on display or must be available for inspection by shareholders at the registered office of Medtronic.

In order for a subsidiary of Medtronic to make an on-market purchase of Medtronic’s shares, such shares must be purchased on a “recognized stock exchange.” The NYSE, on which the shares of Medtronic are listed, is specified as a recognized stock exchange for this purpose by Irish company law.

The number of shares held by the subsidiaries of Medtronic at any time will count as treasury shares and will be included in any calculation of the permitted treasury share threshold of 10% of the aggregate of the par value and share premium in respect of the allotment of Medtronic shares together with the par value of any shares acquired by Medtronic. While a subsidiary holds shares of Medtronic, it cannot exercise any voting rights in respect of those shares. The acquisition of the shares of Medtronic by a subsidiary must be funded out of distributable reserves of the subsidiary.

Lien on Shares, Calls on Shares and Forfeiture of Shares

The Articles of Association provide that Medtronic has a first and paramount lien on every share for all debts and liabilities of any shareholder to the company, whether presently due or not, payable in respect of such share. Subject to the terms of their allotment, directors may call for any unpaid amounts in respect of any shares to be paid, and if payment is not made, the shares may be forfeited. These provisions are standard inclusions in the articles of association of an Irish company limited by shares such as Medtronic and will only be applicable to shares of Medtronic that have not been fully paid up. See also “-Transfer and Registration of Shares” below.

Consolidation and Division; Subdivision

Under the Articles of Association, Medtronic may, by ordinary resolution, consolidate and divide all or any of its share capital into shares of larger nominal value than its existing shares or subdivide its shares into smaller amounts than is fixed by its memorandum of association.

Reduction of Share Capital

Medtronic may, by ordinary resolution, reduce its authorized but unissued share capital in any way. Medtronic also may, by special resolution and subject to confirmation by the Irish High Court, reduce or cancel its issued share capital in any manner permitted by the Irish Companies Act.

Annual Meetings of Shareholders

Medtronic is required to hold an annual general meeting at intervals of no more than 15 months, provided that an annual general meeting is held in each calendar year no more than nine months after Medtronic's fiscal year-end. Any annual general meeting may be held outside of Ireland, provided that technological means are provided to enable shareholders to participate in the meeting without leaving Ireland.

Notice of an annual general meeting must be given to all Medtronic shareholders and to the auditors of Medtronic. The Articles of Association provide for a minimum notice period of 21 days, which is the minimum permitted under Irish law.

The only matters which must, as a matter of Irish company law, be transacted at an annual general meeting are (i) the consideration of the statutory financial statements and reports of the directors and auditors, (ii) the review by the members of the company's affairs and (iii) the appointment or re-appointment of the auditors and the fixing of the auditor’s remuneration (or delegation of same). If no resolution is made in respect of the reappointment of an existing auditor at an annual general meeting, the existing auditor will be deemed to have continued in office.

Extraordinary General Meetings of Shareholders

Extraordinary general meetings of Medtronic may be convened by (i) the board of directors, (ii) any two directors, (iii) the chief executive officer, (iv) the chief financial officer, (v) on requisition of the shareholders holding not less than 10% of the paid up share capital of Medtronic carrying voting rights or (vi) on requisition of Medtronic’s auditors. Extraordinary general meetings are generally held for the purposes of approving shareholder resolutions as may be required from time to time. At any extraordinary general meeting, only such business will be conducted as is set forth in the notice thereof or is proposed pursuant to and in accordance with the procedures and requirements set out in the Articles of Association.

Notice of an extraordinary general meeting must be given to all Medtronic shareholders and to the auditors of Medtronic. Under Irish law and the Articles of Association, the minimum notice periods are 21 days’ notice in writing for an extraordinary general meeting to approve a special resolution and 14 days’ notice in writing for any other extraordinary general meeting.

In the case of an extraordinary general meeting convened by shareholders of Medtronic, the proposed purpose of the meeting must be set out in the requisition notice. Upon receipt of any such valid requisition notice, the Medtronic board of directors has 21 days to convene a meeting of Medtronic shareholders to vote on the matters set out in the requisition notice. This meeting must be held within two months of the receipt of the requisition notice. If the board of directors does not convene the meeting within such 21-day period, the requisitioning shareholders, or any of them representing more than one half of the total voting rights of all of them, may themselves convene a meeting, which meeting must be held within three months of Medtronic’s receipt of the requisition notice.

If the board of directors becomes aware that the net assets of Medtronic are not greater than half of the amount of Medtronic’s called-up share capital, the directors of Medtronic must convene an extraordinary general meeting of Medtronic shareholders not later than 28 days from the date that they learn of this fact to consider how to address the situation.

Quorum for General Meetings

The Articles of Association provide that no business may be transacted at any general meeting unless a quorum is present. One or more shareholders present in person or by proxy at any meeting of shareholders holding not less

than a majority of the issued and outstanding shares entitled to vote at the meeting in question will constitute a quorum for such meeting.

Voting

The Articles of Association provide that all votes will be decided on a poll and that the board or the chairman may determine the manner in which the poll is to be taken and the manner in which the votes are to be counted.

Every shareholder is entitled to one vote for each ordinary share that he or she holds as of the record date for the meeting. Voting rights may be exercised by shareholders registered in Medtronic’s share register as of the record date for the meeting or by a duly appointed proxy, which proxy need not be a shareholder. Where interests in shares are held by a nominee trust company, this company may exercise the rights of the beneficial holders on their behalf as their proxy. All proxies must be appointed in the manner prescribed by the Articles of Association, which provide that the Medtronic board may permit shareholders to notify Medtronic of their proxy appointments electronically.

Irish company law requires special resolutions of the shareholders at a general meeting to approve certain matters. Examples of matters requiring special resolutions include:

a. amending the objects or memorandum of association of Medtronic

b. amending the Articles of Association

c. approving a change of name of Medtronic

Variation of Rights Attaching to a Class or Series of Shares

Under the Articles of Association and the Irish Companies Act, any variation of class rights attaching to the issued shares of Medtronic must be approved by an ordinary resolution of the shareholders of the affected class or with the consent in writing of the holders of the majority of the issued shares of that class of shares.

The provisions of the Articles of Association relating to general meetings apply to general meetings of the holders of any class of shares except that the necessary quorum is determined in reference to the shares of the holders of the class. Accordingly, for general meetings of holders of a particular class of shares, a quorum consists of one or more shareholders present in person or by proxy holding not less than a majority of the issued and outstanding shares of the class entitled to vote at the meeting in question.

Acquisitions

An Irish public limited company may be acquired in a number of ways, including:

a. a court-approved scheme of arrangement under the Irish Companies Act. A scheme of arrangement with shareholders requires a court order from the Irish High Court and the approval of a majority in number representing 75% in value of each class of shareholder present and voting in person or by proxy at a meeting called to approve the scheme;

b. through a tender or takeover offer by a third party for all of the shares of Medtronic. Where the holders of 80% or more of Medtronic’s shares have accepted an offer for their shares in Medtronic, the remaining shareholders may also be statutorily required to transfer their shares. If the bidder does not exercise its “squeeze out” right, then the non-accepting shareholders also have a statutory right to require the bidder to acquire their shares on the same terms. If shares of Medtronic were to be listed on the Irish Stock Exchange or another regulated stock exchange in the European Union, the “squeeze out” threshold would be increased to 90%; and

c. by way of a merger with a company incorporated in the European Economic Area (“EEA”) under the EU Cross-Border Mergers Directive (EU) 2017/1132 or with another Irish company under the Irish Companies

Act. Such a merger must be approved by a special resolution. Shareholders also may be entitled to have their shares acquired for cash. See the section entitled “Description of Share Capital-Appraisal Rights”

Appraisal Rights

Generally, under Irish law, shareholders of an Irish company do not have statutory appraisal rights. If Medtronic is being merged as the transferor company with another EEA company under the European Communities (Cross- Border Mergers) Regulations 2008 (as amended) or if Medtronic is being merged with another Irish company under the Irish Companies Act, (i) any of Medtronic's shareholders who voted against the special resolution approving the merger or (ii) if 90% of Medtronic's shares are held by the successor company, any other of Medtronic's shareholders, may be entitled to require that the successor company acquire its shares for cash.

Disclosure of Interests in Shares

Under the Irish Companies Act, Medtronic shareholders must notify Medtronic if, as a result of a transaction, the shareholder will become interested in 3% or more of the shares of Medtronic or if, as a result of a transaction a shareholder who was interested in more than 3% of the shares of Medtronic ceases to be so interested. Where a shareholder is interested in more than 3% of the shares of Medtronic, the shareholder must notify Medtronic of any alteration of his or her interest that brings his or her total holding through the nearest whole percentage number, whether an increase or a reduction. The relevant percentage figure is calculated by reference to the aggregate nominal value of the shares in which the shareholder is interested as a proportion of the entire nominal value of the issued share capital of Medtronic (or any such class of share capital in issue). Where the percentage level of the shareholder’s interest does not amount to a whole percentage, this figure may be rounded down to the next whole number. Medtronic must be notified within five business days of the transaction or alteration of the shareholder’s interests that gave rise to the notification requirement. If a shareholder fails to comply with these notification requirements, the shareholder’s rights in respect of any Medtronic shares it holds will not be enforceable, either directly or indirectly. However, such person may apply to the court to have the rights attaching to such shares reinstated.

In addition to these disclosure requirements, Medtronic, under the Irish Companies Act, may, by notice in writing, require a person whom Medtronic knows or has reasonable cause to believe to be, or at any time during the three years immediately preceding the date on which such notice is issued to have been, interested in shares comprised in Medtronic’s relevant share capital to: (i) indicate whether or not it is the case and (ii) where such person holds or has during that time held an interest in the shares of Medtronic, to provide additional information, including the person’s own past or present interests in shares of Medtronic. If the recipient of the notice fails to respond within the reasonable time period specified in the notice, Medtronic may apply to court for an order directing that the affected shares be subject to certain restrictions, as prescribed by the Irish Companies Act.

In the event Medtronic is in an offer period pursuant to the Irish Takeover Rules, accelerated disclosure provisions apply for persons holding an interest in Medtronic securities of 1% or more.

In addition, the beneficial ownership disclosures of the U.S. federal securities laws will apply with respect to beneficial ownership of Medtronic shares.

Anti-Takeover Provisions

Business Combinations with Interested Shareholders

Medtronic's Articles of Association provide that, subject to certain exceptions, Medtronic may not engage in certain business combinations with any person that acquires beneficial ownership of 10% or more of Medtronic's outstanding voting shares for a period of four years following the date on which the person became a 10% shareholder unless prior to the person becoming a 10% shareholder, a committee of Medtronic's disinterested directors approve the business combination or the acquisition of shares.

Control Share Acquisition

Subject to certain exceptions, Medtronic's Articles of Association restrict the ability of persons who acquire between twenty percent and thirty percent of the voting rights of Medtronic to exercise the voting rights of the acquired shares in excess of twenty percent absent approval by an ordinary resolution of the disinterested shareholders.

Irish Takeover Rules and Substantial Acquisition Rules

A transaction in which a third party seeks to acquire 30% or more of the voting rights of Medtronic will be governed by the Irish Takeover Panel Act 1997 and the Irish Takeover Rules made thereunder and will be regulated by the Irish Takeover Panel. The “General Principles” of the Irish Takeover Rules and certain important aspects of the Irish Takeover Rules are described below.

General Principles

The Irish Takeover Rules are built on the following General Principles, which will apply to any transaction regulated by the Irish Takeover Panel:

a. in the event of an offer, all holders of securities of the target company should be afforded equivalent treatment and, if a person acquires control of a company, the other holders of securities must be protected;

b. the holders of the securities of the target company must have sufficient time and information to enable them to reach a properly informed decision on the offer; where it advises the holders of securities, the board of the target company must give its views on the effects of implementation of the offer on employment, conditions of employment and the locations of the target company’s places of business;

c. the board of the target company must act in the interests of the company as a whole and must not deny the holders of securities the opportunity to decide on the merits of the offer;

d. false markets must not be created in the securities of the target company, the bidder or of any other company concerned by the offer in such a way that the rise or fall of the prices of the securities becomes artificial and the normal functioning of the markets is distorted;

e. a bidder must announce an offer only after ensuring that he or she can fulfill in full, any cash consideration, if such is offered, and after taking all reasonable measures to secure the implementation of any other type of consideration;

f. a target company must not be hindered in the conduct of its affairs for longer than is reasonable by an offer for its securities; and

g. a substantial acquisition of securities (whether such acquisition is to be effected by one transaction or a series of transactions) shall take place only at an acceptable speed and shall be subject to adequate and timely disclosure.

Mandatory Bid

Under certain circumstances, a person who acquires shares or other voting rights in Medtronic may be required under the Irish Takeover Rules to make a mandatory cash offer for the remaining outstanding shares in Medtronic at a price not less than the highest price paid for the shares by the acquirer (or any parties acting in concert with the acquirer) during the previous 12 months. This mandatory bid requirement is triggered if an acquisition of shares would increase the aggregate holding of an acquirer (including the holdings of any parties acting in concert with the acquirer) to shares representing 30% or more of the voting rights in Medtronic, unless the Irish Takeover Panel otherwise consents. An acquisition of shares by a person holding (together with its concert parties) shares

representing between 30% and 50% of the voting rights in Medtronic would also trigger the mandatory bid requirement if, after giving effect to the acquisition, the percentage of the voting rights held by that person (together with its concert parties) would increase by 0.05% within a 12-month period. Any person (excluding any parties acting in concert with the holder) holding shares representing more than 50% of the voting rights of a company is not subject to these mandatory offer requirements in purchasing additional securities.

Voluntary Bid; Requirements to Make a Cash Offer and Minimum Price Requirements

If a person makes a voluntary offer to acquire outstanding ordinary shares of Medtronic, the offer price must be no less than the highest price paid for Medtronic ordinary shares by the bidder or its concert parties during the three-month period prior to the commencement of the offer period. The Irish Takeover Panel has the power to extend the “look back” period to 12 months if the Irish Takeover Panel, taking into account the General Principles, believes it is appropriate to do so.

If the bidder or any person acting in concert with it has acquired ordinary shares of Medtronic (i) during the period of 12 months prior to the commencement of the offer period which represent more than 10% of the total ordinary shares of Medtronic or (ii) at any time after the commencement of the offer period, the offer must be in cash (or accompanied by a full cash alternative) and the price per Medtronic ordinary share must not be less than the highest price paid by the bidder or any person acting in concert with it during, in the case of (i), the 12-month period prior to the commencement of the offer period or, in the case of (ii), the offer period. The Irish Takeover Panel may apply this rule to a bidder who, together with any person acting in concert with it, has acquired less than 10% of the total ordinary shares of Medtronic in the 12-month period prior to the commencement of the offer period if the Irish Takeover Panel, taking into account the General Principles, considers it just and proper to do so.

An offer period will generally commence from the date of the first announcement of the offer or proposed offer.

In addition, the Articles of Association provide that an offeror who has completed a tender offer for Medtronic may not, within two years after the last purchase in the tender offer, acquire additional shares, whether by purchase, merger, exchange or otherwise, unless the shareholders in those additional acquisitions are given terms that are substantially equivalent to those provided in the earlier tender offer or unless the proposed additional acquisitions are approved by an independent committee of Medtronic’s board of directors prior to the tender offer.

Substantial Acquisition Rules

The Irish Takeover Rules also contain rules governing substantial acquisitions of shares and other voting securities which restrict the speed at which a person may increase his or her holding of shares and rights over shares to an aggregate of between 15% and 30% of the voting rights of Medtronic. Except in certain circumstances, an acquisition or series of acquisitions of shares or rights over shares representing 10% or more of the voting rights of Medtronic is prohibited, if such acquisition(s), when aggregated with shares or rights already held, would result in the acquirer holding 15% or more but less than 30% of the voting rights of Medtronic and such acquisitions are made within a period of seven days. These rules also require accelerated disclosure of acquisitions of shares or rights over shares relating to such holdings.

Shareholder Rights Plan

The Articles of Association expressly authorize Medtronic’s board of directors to adopt a shareholder rights plan, subject to applicable law.

Irish law does not expressly authorize or prohibit companies from issuing share purchase rights or adopting a shareholder rights plan as an anti-takeover measure and there is no directly relevant case law on this issue.

Frustrating Action

Under the Irish Takeover Rules, the Medtronic board of directors is not permitted to take any action which might frustrate an offer for the shares of Medtronic once the Medtronic board of directors has received an approach which

may lead to an offer or has reason to believe an offer is or may be imminent, subject to certain exceptions. Potentially frustrating actions such as (i) the issue of shares, options or convertible securities, (ii) material acquisitions or disposals, (iii) entering into contracts other than in the ordinary course of business or (iv) any action, other than seeking alternative offers, which may result in frustration of an offer, are prohibited during the course of an offer or at any time during which the board has reason to believe an offer is or may be imminent. Exceptions to this prohibition are available where:

a. the action is approved by Medtronic’s shareholders at a general meeting; or

b. the Irish Takeover Panel has given its consent, where:

(i) it is satisfied the action would not constitute frustrating action;

(ii) Medtronic shareholders that hold 50% of the voting rights state in writing that they approve the proposed action and would vote in favor of it at a general meeting;

(iii) the action is taken in accordance with a contract entered into prior to the announcement of the offer; or

(iv) the decision to take such action was made before the announcement of the offer and either has been at least partially implemented or is in the ordinary course of business.

Corporate Governance

The Articles of Association of Medtronic allocate authority over the day-to-day management of Medtronic to the Medtronic board of directors. The Medtronic board of directors may then, by resolution approved by the affirmative vote of a majority of the board, delegate any of its powers, authorities and discretions (with power to sub-delegate) to any committee, consisting of one or more directors, or delegate to any director, officer or member of management of Medtronic or any of its subsidiaries such of its powers as it considers desirable to be exercised by him or her, but regardless, the directors will remain responsible, as a matter of Irish law, for the proper management of the affairs of Medtronic. Committees may meet and adjourn as they determine proper. Unless otherwise determined by the board of directors, the quorum necessary for the transaction of business at any committee meeting shall be a majority of the members of the committee.

Medtronic has a standing Audit Committee, Compensation Committee, Nominating and Corporate Governance Committee, Quality Committee, Finance and Financial Risk Committee and Technology and Value Creation Committee.

Appointment of Directors

The Irish Companies Act provides for a minimum of two directors. Medtronic's Articles of Association provide for a minimum of three directors and a maximum of fifteen. The board of directors has sole authority to determine its size within these parameters. Directors of Medtronic will be elected by way of an ordinary resolution at a general meeting. This majority voting standard could result in the number of directors falling below the prescribed minimum number of directors due to the failure of nominees to be elected. If the number of the directors is reduced below the fixed minimum number, the remaining director or directors must appoint, as soon as practicable, an additional director or additional directors to make up such minimum or must convene a general meeting of Medtronic for the purpose of making such appointment. In the event of a “contested election” of directors, directors shall be elected by the vote of a plurality of the votes cast at any meeting for the election of directors at which a quorum is present. Each director of Medtronic must retire from office at each annual shareholder meeting and shall be re-eligible for re-election.

No person may be appointed director unless nominated in accordance with the Articles of Association. The Articles of Association provide that, with respect to an annual or extraordinary general meeting of shareholders, nominations

of persons for election to the Medtronic board of directors may be made by (i) the affirmative vote of the Medtronic board of directors or a committee thereof, (ii) any shareholder who is entitled to vote at the meeting and who has complied with the advance notice procedures provided for in the Articles of Association, (iii) with respect to election at an extraordinary general meeting requisitioned in accordance with section 178(3) of the Irish Companies Act, by a shareholder who holds ordinary shares or other shares carrying the general right to vote at general meetings of the company and who makes such nomination in the written requisition of the extraordinary general meeting in accordance with the Articles of Association and the Irish Companies Act relating to nominations of directors and the proper bringing of business before an extraordinary general meeting, or (iv) any shareholder who is entitled to vote at the meeting and who has complied with the "proxy access" provisions contained in the Articles of Association. Medtronic’s Articles of Association contain “proxy access” provisions which give an eligible shareholder (or group of up to 20 such shareholders) that has owned 3% or more of the voting power continuously for at least three years, the right to nominate up to 20% of the directors and to have those nominees included in Medtronic’s proxy materials, subject to the other terms and conditions of Medtronic's articles of association.

Removal of Directors

Under the Irish Companies Act, the shareholders may, by an ordinary resolution, remove a director from office before the expiration of his or her term at a meeting held on no less than 28 days’ notice and at which the director is entitled to be heard. The power of removal is without prejudice to any claim for damages for breach of contract (e.g., employment contract) that the director may have against Medtronic in respect of his or her removal.

The board of directors may fill any vacancy occurring on the board of directors. If the Medtronic board of directors fills a vacancy, the director shall hold office until the next election of directors and until his or her successor shall be elected. A vacancy on the board of directors created by the removal of a director may be filled by the Medtronic board of directors.

Duration; Dissolution; Rights upon Liquidation

Medtronic’s duration is unlimited. Medtronic may be dissolved and wound up at any time by way of a shareholders’ voluntary winding up or a creditors’ winding up. In the case of a shareholders’ voluntary winding-up, a special resolution of shareholders is required. Medtronic may also be dissolved by way of court order on the application of a creditor, or by the Companies Registration Office as an enforcement measure where Medtronic has failed to file certain returns.

The rights of the shareholders to a return of Medtronic’s assets on dissolution or winding up, following the settlement of all claims of creditors, may be prescribed in the Articles of Association or the terms of any preferred shares issued by the directors of Medtronic from time to time. The holders of preferred shares in particular may have the right to priority in a dissolution or winding up of Medtronic. If the Articles of Association contain no specific provisions in respect of a dissolution or winding up then, subject to the priorities of any creditors, the assets will be distributed to shareholders in proportion to the paid-up nominal value of the shares held. The Articles of Association provide that the ordinary shareholders of Medtronic are entitled to participate pro rata in a winding up, but their right to do so may be subject to the rights of any preferred shareholders to participate under the terms of any series or class of preferred shares. Please see “Description of Medtronic Ordinary Shares-Capital Structure-Authorized Share Capital” for additional information on rights upon a liquidation.

Uncertificated Shares

Pursuant to the Irish Companies Act, a shareholder is entitled to be issued a share certificate on request and subject to payment of a nominal fee.

Stock Exchange Listing

The Medtronic ordinary shares are listed on the New York Stock Exchange under the ticker symbol “MDT.”

No Sinking Fund

The Medtronic ordinary shares have no sinking fund provisions.

Transfer and Registration of Shares

The transfer agent for Medtronic maintains the share register, registration in which is determinative of membership in Medtronic. A shareholder of Medtronic who holds shares beneficially is not holder of record of such shares. Instead, the depository or other nominee is the holder of record of those shares. Accordingly, a transfer of shares from a person who holds such shares beneficially to a person who also holds such shares beneficially through a depository or other nominee will not be registered in Medtronic’s official share register, as the depository or other nominee will remain the record holder of any such shares.

A written instrument of transfer is required under Irish law in order to register on Medtronic’s official share register any transfer of shares (i) from a person who holds such shares directly to any other person, (ii) from a person who holds such shares beneficially to a person who holds such shares directly or (iii) from a person who holds such shares beneficially to another person who holds such shares beneficially where the transfer involves a change in the depository or other nominee that is the record owner of the transferred shares. An instrument of transfer is also required for a shareholder who directly holds shares to transfer those shares into his or her own broker account (or vice versa). Such instruments of transfer may give rise to Irish stamp duty, which must be paid prior to registration of the transfer on Medtronic’s official Irish share register. However, a shareholder who directly holds shares may transfer those shares into his or her own broker account (or vice versa) without giving rise to Irish stamp duty provided there is no change in the ultimate beneficial ownership of the shares as a result of the transfer and the transfer is not made in contemplation of a sale of the shares.

Any transfer of Medtronic ordinary shares that is subject to Irish stamp duty will not be registered in the name of the buyer unless an instrument of transfer is duly stamped and provided to the transfer agent. The Articles of Association allow Medtronic, in its absolute discretion, to create an instrument of transfer and pay (or procure the payment of) any stamp duty, which is the legal obligation of a buyer. In the event of any such payment, Medtronic is (on behalf of itself or its affiliates) entitled to (i) seek reimbursement from the buyer or seller (at its discretion), (ii) set-off the amount of the stamp duty against future dividends payable to the buyer or seller (at its discretion) and (iii) claim a lien against the Medtronic ordinary shares on which it has paid stamp duty. Parties to a share transfer may assume that any stamp duty arising in respect of a transaction in Medtronic ordinary shares has been paid unless one or both of such parties is otherwise notified by Medtronic.

The Articles of Association delegate to Medtronic’s secretary (or such other person as may be nominated by the secretary for this purpose) the authority to execute an instrument of transfer on behalf of a transferring party.

In order to help ensure that the official share register is regularly updated to reflect trading of Medtronic ordinary shares occurring through normal electronic systems, Medtronic intends to regularly produce any required instruments of transfer in connection with any transactions for which it pays stamp duty (subject to the reimbursement and set-off rights described above). In the event that Medtronic notifies one or both of the parties to a share transfer that it believes stamp duty is required to be paid in connection with the transfer and that it will not pay the stamp duty, the parties may either themselves arrange for the execution of the required instrument of transfer (and may request a form of instrument of transfer from Medtronic for this purpose) or request that Medtronic execute an instrument of transfer on behalf of the transferring party in a form determined by Medtronic. In either event, if the parties to the share transfer have the instrument of transfer duly stamped (to the extent required) and then provide it to Medtronic’s transfer agent, the buyer will be registered as the legal owner of the relevant shares on Medtronic’s official Irish share register (subject to the matters described below).

The directors may suspend registration of transfers from time to time, not exceeding 30 days in aggregate each year.

DESCRIPTION OF DEBT SECURITIES

The following description of Medtronic’s registered debt securities is a summary. This summary does not purport to be complete and is qualified in its entirety by reference to the Base Indenture and Supplemental Indenture (each as hereinafter defined). Copies of the Base Indenture and Supplemental Indenture have been filed with the Securities and Exchange Commission (the “SEC”) as exhibits 4.21 and 4.23, respectively, to our Annual Report on Form 10-K for the fiscal year ended April 26, 2019.

General

Each series of notes was issued as a separate series of senior debt securities, under a Senior Indenture, dated March 28, 2017 (the “Base Indenture”) among Medtronic Luxco, as issuer, Medtronic and Medtronic, Inc., a Minnesota corporation (“Medtronic, Inc.”) as guarantors, and Wells Fargo Bank, National Association as trustee, as supplemented by the Second Supplemental Indenture, dated as of March 7, 2019 (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”). Each series of notes is a general unsecured senior obligation of Medtronic Luxco and is fully and unconditionally guaranteed by Medtronic and Medtronic, Inc., on a joint and several basis.

The notes of each series are issued only in registered form, without coupons, in minimum denominations of €100,000 and integral multiples of €1,000 in excess thereof. The notes of each series are issued in the form of one or more global securities that are deposited initially with, or on behalf of, a common depositary, and registered in the name of the nominee of the common depositary, for, and in respect of interests held through, Euroclear Bank SA/NV (“Euroclear”) and Clearstream Banking S.A. (“Clearstream”).

U.S. Bank National Association acts as registrar for the notes. The notes may be presented for registration of transfer and exchange at the offices of the registrar, which initially is the trustee’s corporate trust office. Medtronic Luxco entered into an agency agreement with Elavon Financial Services DAC, UK Branch (“Elavon”) as paying agent and calculation agent, concurrently with the delivery of the notes. Medtronic Luxco may change any paying agent, calculation agent and registrar without notice to holders of the notes and may act as a paying agent, calculation agent or registrar.

Maturity

Each series of notes will mature and bear interest as provided in the following table:

Series	Maturity	Interest Rate	Interest Payment Dates	Record Dates
Floating rate notes	March 7, 2021	Three-month USD EURIBOR plus 0.2% per annum	March 7, June 7, September 7 and  December 7	Close of business on the business day immediately preceding the interest payment date.
2021 notes	March 7, 2021	0.000%	March 7	Close of business on the business day immediately preceding the interest payment date.
2023 notes	March 7, 2023	0.375%	March 7	Close of business on the business day immediately preceding the interest payment date.
2027 notes	March 7, 2027	1.125%	March 7	Close of business on the business day immediately preceding the interest payment date.
2031 notes	March 7, 2031	1.625%	March 7	Close of business on the business day immediately preceding the interest payment date.
2039 notes	March 7, 2039	2.250%	March 7	Close of business on the business day immediately preceding the interest payment date.

The notes are not subject to any sinking fund.

Interest

Floating Rate Notes

Interest on the floating rate notes accrues from the date of original issuance or, if interest has already been paid, from and including the most recent interest payment date to which interest has been paid or provided for. Medtronic Luxco will make interest payments on the floating rate notes on each interest payment date set forth in the table above, with the first interest payment being made on June 7, 2019. Medtronic Luxco will make interest payments to the person in whose name the floating rate notes are registered at the close of business on the record date set forth in the table above whether or not a business day that precedes the applicable interest payment date.

The floating rate notes bear interest for each interest period at a rate per annum calculated by the calculation agent, subject to the maximum interest rate permitted by New York law or other applicable state law, as such law may be modified by United States law of general application. The per annum rate at which interest on the floating rate notes will be payable during each interest period will be equivalent to three-month EURIBOR, determined on the interest determination date for that interest period, plus 0.200%; provided, that the minimum interest rate shall be zero. The rate of interest on the floating rate notes will be reset on the interest reset date for each relevant interest period.

If any interest payment date (other than a maturity date or redemption date) or interest reset date for the floating rate notes would otherwise be a day that is not a business day, such interest payment date or interest reset date shall be the next succeeding business day, unless the next succeeding business day is in the next succeeding calendar month, in which case such interest payment date or interest reset date shall be the business day immediately preceding such interest payment date or interest reset date, as applicable. If the maturity date or redemption date for the floating rate notes would fall on a day that is not a business day, the payment of interest and principal will be made on the next succeeding business day, and no interest will accrue after such maturity date.

All percentages resulting from any calculation of any interest rate for the floating rate notes will be rounded, if necessary, to the nearest one hundred thousandth of a percentage point, with five one-millionths of a percentage

point rounded upward (e.g., 9.876545% (or .09876545) would be rounded to 9.87655% (or .0987655)), and all dollar amounts would be rounded to the nearest cent, with one-half cent being rounded upward.

“Interest determination date” means the second London business day immediately preceding the first day of the relevant interest period.

“Interest period” means, with respect to the floating rate notes, the period beginning on any interest payment date for the floating rate notes (or, with respect to the initial interest period only, beginning on March 7, 2019) to, but excluding, the next succeeding interest payment date for the floating rate notes, and in the case of the last such period, from and including the interest payment date immediately preceding the maturity date to, but not including, the maturity date for the floating rate notes.

“Interest reset date” means the first day of the relevant interest period.

“Three-month EURIBOR” will be determined by the calculation agent in accordance with the following provisions:

• With respect to any interest determination date, three-month EURIBOR will be the offered rate for deposits in euro having a maturity of three months, as that rate appears on Reuters Page EURIBOR01 as of 11:00 A.M., Brussels time, on the relevant interest determination date.

• If the rate described above does not appear on Reuters Page EURIBOR01, three-month EURIBOR will be determined on the basis of the rates, at approximately 11:00 A.M., Brussels time, on the relevant EURIBOR interest determination date, at which deposits of the following kind are offered to prime banks in the Euro-Zone interbank market by the principal Euro-Zone office of each of four major banks in that market selected by Medtronic Luxco: euro deposits having a maturity of three months and in a principal amount of not less than €1,000,000 that is representative for a single transaction in such market at such time. Medtronic Luxco will request the principal Euro-Zone office of each of these banks to provide to the paying agent and the calculation agent a quotation in writing of its rate. If at least two quotations are provided in writing, EURIBOR for such interest determination date will be the arithmetic mean (rounded upwards) calculated by the calculation agent of such quotations.

• If fewer than two quotations are provided as described above, three-month EURIBOR for the relevant interest determination date will be the arithmetic mean of the rates for loans of the following kind to leading Euro-Zone banks quoted in writing, at approximately 11:00 A.M., Brussels time, on such interest determination date, by three major banks in the Euro-Zone selected by Medtronic Luxco: loans of euro having a maturity of three months and in a principal amount of not less than €1,000,000 that is representative for a single transaction in such market at such time.

• If fewer than three banks selected by Medtronic Luxco are quoting as described above, three-month EURIBOR shall be the EURIBOR in effect on such interest determination date (or, in the case of the first interest reset date, three-month EURIBOR will be the initial three-month EURIBOR).

• The amount of interest for each day that the floating rate notes are outstanding (the “Daily Interest Amount”) will be calculated by dividing the interest rate in effect for the floating rate notes for such day by 360 and multiplying the result by the principal amount of the floating rate notes then outstanding. The amount of interest to be paid on the floating rate notes for any interest period will be calculated by adding the Daily Interest Amount for the floating rate notes for each day in such interest period.

Notwithstanding the foregoing, if Medtronic Luxco, in its sole discretion, determines that EURIBOR has been permanently discontinued, or the reference to EURIBOR becomes illegal, or most other debt obligations similar to the floating rate notes have converted away from EURIBOR to a new reference rate, the calculation agent will use, as directed by Medtronic Luxco, as a substitute for EURIBOR for each future interest determination date, the alternative reference rate (the “Alternative Rate”) selected by a central bank, reserve bank, monetary authority or any similar institution (including any committee or working group thereof) that is consistent with accepted market practice regarding a substitute for EURIBOR. As part of such substitution, the calculation agent will, as directed by Medtronic Luxco, make such adjustments (“Adjustments”) to the Alternative Rate and/or the spread thereon, as

well as the business day convention, interest determination dates and related provisions and definitions, in each case that are consistent with accepted market practice for the use of such Alternative Rate for debt obligations such as the floating rate notes. If Medtronic Luxco determines there is no clear market consensus as to whether any rate has replaced EURIBOR in customary market usage, Medtronic Luxco may appoint in its sole discretion an independent financial advisor (the “IFA”) to determine an appropriate Alternative Rate, and any Adjustments, and the decision of the IFA will be binding on Medtronic Luxco, the calculation agent, the trustee and the holders. If, however, Medtronic Luxco determines that EURIBOR has been discontinued, but for any reason an Alternative Rate has not been determined, the rate of EURIBOR for the next interest period will be equal to such rate on the interest determination date when EURIBOR was last available on Reuters Page EURIBOR01, as determined by the calculation agent.

The interest rates and amount of interest to be paid on the floating rate notes for each interest period will be calculated by the calculation agent, which initially will be Elavon. All calculations made by the calculation agent shall, in the absence of manifest error, be conclusive for all purposes and binding on us and the holders of the floating rate notes. So long as three-month EURIBOR is required to be determined with respect to the floating rate notes, there will at all times be a calculation agent. In the event that any then acting calculation agent shall be unable or unwilling to act, or that such calculation agent shall fail duly to establish EURIBOR for any interest period, or that Medtronic Luxco proposes to remove such calculation agent, Medtronic Luxco shall appoint itself or another person which is a bank, trust company, investment banking firm or other financial institution to act as the calculation agent.

Fixed Rate Notes

The fixed rate notes bear interest from the date of issuance, payable annually in arrears on March 7 of each year, beginning March 7, 2020, to the persons in whose names such notes are registered at the close of business on the business day (for this purpose, a day on which Clearstream and Euroclear are open for business) immediately preceding the relevant interest payment. Interest on the fixed rate notes will be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the notes (or March 7, 2019, if no interest has been paid on the applicable series of fixed rate notes), to, but excluding, the next scheduled interest payment date. This payment convention is referred to as Actual/Actual (ICMA) as defined in the rulebook of the International Capital Market Association.

If any interest payment date would otherwise be a day that is not a business day, such interest payment date will be postponed to the next date that is a business day and no interest will accrue on the amounts payable from and after such interest payment date to the next business day. If the maturity date of any series of fixed rate notes falls on a day that is not a business day, the related payment of principal, premium, if any, and interest will be made on the next business day as if it were made on the date such payment was due, and no interest will accrue on the amounts so payable for the period from and after such date to the next business day.

Guarantees

Each of Medtronic and Medtronic, Inc. (each, a “Guarantor” and together, the “Guarantors”) fully and unconditionally guarantee, on a joint and several basis, the due and punctual payment of all obligations of

Medtronic Luxco under the notes, whether for the payment of principal of, premium, if any, or interest or certain additional amounts on the notes, when and as the same shall become due and payable, whether at maturity, declaration of acceleration, upon redemption, repurchase or otherwise.

Notwithstanding the foregoing, each Guarantor will be automatically and unconditionally released from all obligations under its guarantee, and such guarantees shall terminate and be discharged and be of no further force and effect upon the occurrence of certain circumstances.

The guarantees of the notes may be subject to review under United States federal or state fraudulent transfer law or similar laws in other applicable jurisdictions, which could limit their enforceability. The guarantees will provide that the obligations of each Guarantor will be limited as necessary to prevent that guarantee from constituting a fraudulent conveyance or fraudulent transfer under applicable law.

Ranking

The notes are unsecured senior obligations of Medtronic Luxco and rank equally in right of payment with each other and with all of Medtronic Luxco’s other existing and future unsecured senior obligations, including its outstanding guarantees of senior notes of other indebtedness of Medtronic, Inc. and other subsidiaries of Medtronic, including Covidien International Finance S.A., a wholly-owned indirect subsidiary of Medtronic Luxco. Additionally, the notes are effectively subordinated to any existing and future secured indebtedness of Medtronic Luxco, to the extent of the assets securing such indebtedness. The notes rank senior in right of payment to any existing and future subordinated indebtedness of Medtronic Luxco. The notes are also structurally subordinated to all existing and any future obligations of Medtronic Luxco’s subsidiaries (other than Medtronic, Inc. because of its guarantee of the notes).

The guarantees are unsecured senior obligations of each of Medtronic and Medtronic, Inc., and rank equally with all other unsecured senior obligations of Medtronic plc and Medtronic, Inc. as applicable. The guarantees of the notes rank equally in right of payment with all other existing and future unsecured senior obligations of Medtronic plc and Medtronic, Inc.; be effectively subordinated to any existing and future secured indebtedness of Medtronic plc and Medtronic, Inc. to the extent of the assets securing such indebtedness; and be structurally subordinated to all existing and future debt and other obligations of Medtronic plc’s and Medtronic, Inc.’s subsidiaries, respectively, including, with respect to Medtronic plc, Covidien International Finance S.A., a wholly-owned indirect subsidiary of Medtronic Luxco.

Optional Redemption

Except as described below under “-Redemption Upon Changes in Withholding Taxes,” the floating rate notes are not redeemable at Medtronic Luxco’s option.

Medtronic Luxco may redeem any series of the fixed rate notes, in whole or in part, in the case of the 2021 notes, at any time prior to their maturity, and in the case of the 2023 notes, the 2027 notes, the 2031 notes and the 2039 notes, at any time prior to the applicable Par Call Date at a redemption price equal to the greater of:

• 100% of the principal amount of the fixed rate notes of the applicable series being redeemed; and

• the sum, as determined by a Quotation Agent (defined below), of the present values of the Remaining Scheduled Payments (as defined below) of principal and interest on the notes of such series to be redeemed (excluding any portion of such payments of interest accrued as of the date of redemption and assuming, in the case of the 2023 notes, the 2027 notes, the 2031 notes and the 2039 notes, that such notes matured on the applicable Par Call Date), discounted to the redemption date on an annual basis (ACTUAL/ACTUAL(ICMA)) at the Comparable Bond Rate (defined below), plus 10 basis points, in the case of the 2021 notes, 15 basis points, in the case of the 2023 notes, 20 basis points, in the case of the 2027 notes, 25 basis points, in the case of the 2031 notes, and 30 basis points, in the case of the 2039 notes;

plus, in each case, accrued and unpaid interest to, but not including, the date of redemption. Notes may be redeemed in part in the minimum authorized denomination or in any integral multiple of such amount. Unless Medtronic Luxco defaults in payment of the redemption price, on and after the redemption date, interest will cease to accrue on the fixed rate notes or portions thereof called for redemption.

In addition, at any time on and after the applicable Par Call Date, the 2023 notes, the 2027 notes, the 2031 notes and the 2039 notes will be redeemable at Medtronic Luxco’s option, in whole or in part, at a redemption price equal to

100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but not including, the date of redemption.

Medtronic Luxco will provide notice of any optional redemption to each holder of notes of the series to be redeemed at least 15 days, but not more than 60 days, before the redemption date. A notice of redemption may, at the discretion of Medtronic Luxco, be subject to one or more conditions precedent, including, but not limited to, completion of an equity offering, a financing, or other corporate transaction. In addition, if such redemption or notice is subject to satisfaction of one or more conditions precedent, such notice shall state that, in Medtronic Luxco’s discretion, the redemption date may be postponed until up to 60 days following the notice of redemption, and such notice may be rescinded in the event that any or all such conditions shall not have been satisfied by the redemption date (including as it may be postponed). Medtronic Luxco will give notice of such redemption to the trustee at least 10 days prior to the date Medtronic Luxco mails the notice of redemption to each holder (or such shorter time as may be acceptable to the trustee). Unless Medtronic Luxco defaults in payment of the redemption price on the redemption date, on and after the redemption date, interest will cease to accrue on the fixed rate notes or portions thereof called for redemption.

If Medtronic Luxco does not redeem all of the fixed rate notes of a particular series, the trustee shall select the fixed rate notes of that series to be redeemed in any manner that it deems fair and appropriate consistent with the applicable procedures of the despositary.

Any notice to holders of fixed rate notes of a redemption hereunder shall include the appropriate calculation of the redemption price, but does not need to include the redemption price itself. The actual redemption price, calculated as described above, will be set forth in an officers’ certificate delivered to the trustee no later than two business days prior to the redemption date.

“Comparable Bond Rate” means, for any redemption date, the rate per annum equal to the annual equivalent yield to maturity or interpolated yield to maturity (on a day count basis), computed as the third business day immediately preceding that redemption date, of the Comparable Government Issue (as defined below), assuming a price for the Comparable Government Issue (expressed as a percentage of its principal amount) equal to the Comparable Price (as defined below) for that redemption date.

“Comparable Government Issue” means the euro-denominated security issued by the German federal government selected by a Quotation Agent as having an actual or interpolated maturity comparable to the remaining term of the fixed rate notes to be redeemed (assuming that the notes to be redeemed matured on the applicable Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the notes to be redeemed.

“Comparable Price” means, with respect to any redemption date, (1) the average of the Reference Dealer Quotations (as defined below) for such redemption date, after excluding the highest and lowest of the Reference Dealer Quotations, (2) if Medtronic Luxco obtains fewer than four Reference Dealer Quotations, the arithmetic average of those quotations or (3) if Medtronic Luxco obtains only one Reference Dealer Quotation, such Reference Dealer Quotation.

“Par Call Date” means: in the case of the 2023 notes, February 7, 2023; in the case of the 2027 notes, December 7, 2026; in the case of the 2031 notes, December 7, 2030; and in the case of the 2039 notes, December 7, 2038.

“Quotation Agent” means the Reference Dealer appointed by Medtronic Luxco.

“Reference Dealer” means (1) each of Barclays Bank PLC and Merrill Lynch International and their respective successors; provided, however, that if any of the foregoing shall cease to be a broker or dealer of, and/or a market maker in, German government bonds (a “Primary Bond Dealer”), Medtronic Luxco shall substitute another Primary Bond Dealer and (2) any other Primary Bond Dealers selected by Medtronic Luxco.

“Reference Dealer Quotations” means, with respect to each Reference Dealer and any redemption date, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Government Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by that Reference Dealer at 11:00 a.m., London time, on the third business day preceding that redemption date.

“Remaining Scheduled Payments” means, with respect to each fixed rate note to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due after the related redemption date but for such redemption (assuming that the fixed rate notes to be redeemed matured on the applicable Par Call Date); provided, however, that, if such redemption date is not an interest payment date with respect to such note, the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to such redemption date.

Redemption Upon Changes in Withholding Taxes

Medtronic Luxco may redeem all, but not less than all, of the notes of any series in the event of certain changes in the tax laws, regulations, rulings or treaties of Luxembourg, Ireland, the United States or any other jurisdiction in which Medtronic Luxco or any Guarantor is then organized (or any taxing authority thereof or therein) (a “Taxing Jurisdiction”) if, in the written opinion of independent counsel chosen by Medtronic Luxco, Medtronic plc or Medtronic, Inc., there is a material probability that Medtronic Luxco, Medtronic plc or Medtronic, Inc. will become obligated to pay certain additional amounts with respect to the notes. This redemption would be at a redemption price equal to 100% of the principal amount of the notes of such series being redeemed, together with accrued and unpaid interest, if any, to, but not including, the redemption date.

Payment of Additional Amounts

Subject to certain exceptions and limitations, all payments made by Medtronic Luxco or any Guarantor under or with respect to the notes and guarantees will be made free and clear of and without withholding or deduction for or on account of any present or future taxes, duties, levies, imposts, assessments or governmental charges of whatever nature imposed or levied by or on behalf of any Taxing Jurisdiction, unless Medtronic Luxco or any Guarantor, as the case may be, is required to withhold or deduct taxes by law or by the interpretation or administration thereof. In the event that Medtronic Luxco or any Guarantor is required to so withhold or deduct any amount for or on account of any taxes from any payment made under or with respect to the notes or the guarantees, as the case may be, subject to certain exceptions and limitations Medtronic Luxco or the applicable Guarantor, as the case may be, will pay such additional amounts (“Additional Amounts”) as may be necessary so that the net amount received by each holder of notes (including Additional Amounts) after such withholding or deduction will equal the amount that such holder would have received if such taxes had not been required to be withheld or deducted.

Events of Default

Any of the following events will constitute an event of default for each series of notes under the Indenture:

• failure to pay any interest on the notes of that series when due and payable and such failure continues for 30 days;

• failure to pay principal of or any premium on the notes of that series at its maturity, acceleration, redemption or otherwise;

• failure to perform or the breach of any other covenant or warranty in the Indenture applicable to such series and such failure continues for 60 days after written notice as provided in such Indenture;

• failure to pay principal when due at maturity or a default that results in the acceleration of maturity of Medtronic plc’s or any Restricted Subsidiary’s (defined below) indebtedness for borrowed money in an aggregate amount of $150 million or more;

• Medtronic plc’s or Medtronic, Inc.’s guarantee ceases to be in full force and effect or is declared to be null and void and unenforceable or such guarantee is found to be invalid or Medtronic plc or Medtronic, Inc.

denies its liability under its guarantee (other than by reason of release of a Guarantor in accordance with the terms of the Indenture);

• certain events in bankruptcy, insolvency, examinership or reorganization, voluntary or involuntary, relating to Medtronic Luxco, Medtronic or Medtronic, Inc.; and

• any other event of default provided with respect to notes of such series.

If an event of default, other than an event of default specified in the sixth bullet point above, occurs with respect to notes of any series and is continuing, either the applicable trustee or the holders of at least 25% in principal amount of the outstanding notes of that series may declare the principal amount of all notes of that series to be due and payable immediately; provided, however, that under certain circumstances the holders of a majority in aggregate principal amount of outstanding notes of that series may rescind and annul such declaration and its consequences. If an event of default specified in the sixth bullet point above occurs and is continuing, the entire principal amount of, and accrued interest, if any, on each series of notes then outstanding shall become immediately due and payable.

The applicable trustee, after the occurrence of a default with respect to any series of notes, shall give to the holders of notes of that series notice of all uncured defaults known to it (the term default to mean the events specified above without grace periods); provided, that, except in the case of default in the payment of principal of (or premium, if any) or interest, if any, on any note, the trustee shall be protected in withholding such notice if it in good faith determines that the withholding of such notice is in the interest of the holders of the notes of such series.

The holders of a majority in principal amount of the outstanding notes of any series affected will have the right, subject to certain limitations, to direct the time, method and place of conducting any proceeding for any remedy available to the trustee or exercising any trust or power conferred on the trustee with respect to the notes of such series, and to waive certain defaults.

In case an event of default shall occur and be continuing, each trustee shall exercise such of its rights and powers under the Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. Subject to such provisions, the trustees will be under no obligation to exercise any of their rights or powers under the Indenture at the request or direction of any of the holders of notes unless such holders shall have offered to the applicable trustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

The Indenture requires us to deliver to the trustees annual statements as to the performance of our obligations under the Indenture and as to any events of default thereunder.

A default in the payment of any of our notes or under any related guarantee, or a default with respect to our notes or any related guarantee that causes such notes to be accelerated, may give rise to a cross-default under our other indebtedness.

“Restricted Subsidiary” means (i) each of Medtronic Luxco and Medtronic, Inc. and (ii) any other subsidiary of Medtronic which owns or leases a Principal Property, except any subsidiary substantially all of the assets of which are located, or substantially all of the business of which is carried on, outside the United States and its territories and possessions.

“Principal Property” means any plant, office facility, warehouse, distribution center or equipment located within the United States (other than its territories or possessions) and owned by Medtronic or any subsidiary, the gross book value (without deduction of any depreciation reserves) of which on the date as of which the determination is being made exceeds 2% of the Consolidated Net Tangible Assets of Medtronic, except any such property which Medtronic’s board of directors, in its good faith opinion, determines is not of material importance to the business conducted by Medtronic and its subsidiaries, taken as a whole, as evidenced by a certified copy of a board resolution.

Modification of the Indenture

Modifications and amendments of the Indenture may be made by us and the applicable trustee with the consent of the holders of not less than a majority in aggregate principal amount of the outstanding notes of each series affected by the modification or waiver; provided, however, that no such modification or amendment may without the consent of the holder of each noteholder affected thereby, extend the stated maturity of the principal of, or any installment of principal of or interest on, any note, reduce the principal amount of, or premium or interest on, any note, change the place of payment where coin or currency in which the principal of, or any premium or interest on, any note is payable, impair the right to institute suit for the enforcement of any payment on or with respect to any note, reduce the percentage in principal amount of outstanding notes, the consent of the holders of which is required for modification or amendment of the Indenture or for waiver of compliance with certain provisions of the Indenture or for waiver of certain defaults or modify any of the above provisions.

The holders of not less than a majority in aggregate principal amount of the outstanding notes of each series may, on behalf of the holders of all notes of that series, waive compliance by us with certain restrictive provisions of the Indenture that may be amended by such majority. The holders of not less than a majority in aggregate principal amount of the outstanding notes of each series may, on behalf of the holders of all notes of such series, waive any past default under the Indenture, except a default (1) in the payment of principal of, or any premium or interest on, any note or (2) in respect of a covenant or provision of the Indenture which cannot be modified or amended without the consent of the holder of each note of the affected series.

Modifications and amendments of the Indenture may be made by us and the trustee without the consent of any holders of any series of notes for any of the following purposes:

• to evidence the succession of another person to us or any guarantor and the assumption by any such successor of our or such Guarantor’s covenants under the Indenture and in the notes;

• to add to our covenants or the covenants applicable to any guarantor for the benefit of the holders or to surrender any right or power in the Indenture conferred upon us or any Guarantor;

• to add any additional events of default for the benefit of the holders;

• to secure the notes or any related guarantee;

• to evidence and provide for the acceptance of appointment hereunder by a successor trustee;

• to cure any ambiguity, to correct or supplement any provision in the Indenture or in any supplemental indenture which may be inconsistent with any other provision of such indenture or supplemental indenture, or to make any other provisions with respect to matters or questions arising under the Indenture; provided such action shall not adversely affect the interests of the holders in any material respect;

• to conform the Indenture or any supplemental indenture to the description of the notes set forth in any prospectus or prospectus supplement related to such series of notes;

• to comply with the requirements of the SEC in order to effect or maintain the qualifications of the indenture under the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”);

• to add to or change any of the provisions of the Indenture to such extent as shall be necessary to permit or facilitate the issuance of notes in bearer form or to facilitate the issuance of notes in uncertificated form;

• to provide for the issuance and establish the forms or terms and conditions of notes of any series as permitted by the Indenture;

• to add or release a Guarantor as permitted by the Indenture; or

• to comply with the rules of any applicable securities depositary.

Notes will not be considered outstanding, and therefore will not be eligible to vote on any matter, if we have deposited or set aside in trust money for their payment or redemption. Notes will also not be eligible to vote if they have been fully defeased.

We will generally be entitled to set any day as a record date for the purpose of determining the holders of outstanding notes that are entitled to vote or take other action under the Indenture. In certain limited circumstances, the trustee will be entitled to set a record date for action by holders. If we or the trustee set a record date for a vote or other action to be taken, that vote or action may be taken only by persons who are holders of outstanding notes on the record date and must be taken within 180 days following the record date or a shorter period that we may specify (or as the trustee may specify, if it set the record date). We may shorten or lengthen (but not beyond 180 days) this period from time to time.

Other Provisions of the Notes

The Indenture governing the notes contains provisions that restrict our ability, and the ability of certain of our subsidiaries, to incur secured debt and to engage in sale and leaseback transactions. The Indenture does not restrict our ability to convey or transfer our properties and assets other than as an entirety or substantially as an entirety to any other person. The Indenture contains no other restrictive covenants, including those that would afford holders of the notes protection in the event of a highly-leveraged transaction involving Medtronic Luxco or any of its affiliates or other events that may adversely affect our creditworthiness or the value of the notes. The Indenture also does not contain any covenants relating to total unsecured indebtedness, interest coverage, stock repurchases, recapitalizations, dividends and distributions to shareholders, current ratios or acquisitions and divestitures.

Regarding the Trustees

The Indenture trustee’s current address is Wells Fargo Bank, National Association, 600 South 4th Street, 6th Floor, Minneapolis, Minnesota 55415.

The Indenture provides that, except during the continuance of an event of default, the trustee will perform only such duties as are specifically set forth in the Indenture. During the existence of an event of default, the trustee will exercise such rights and powers vested in its exercise as a prudent person would exercise under the circumstances in the conduct of such person’s own affairs.

The Indenture and certain provisions of the Trust Indenture Act contain limitations on the rights of the trustees, should a trustee become a creditor of us, Medtronic plc or Medtronic, Inc. to obtain payment of claims in certain cases or to realize on certain property received by it in respect of any such claim as security or otherwise. A trustee is permitted to engage in other transactions with us or any affiliate of ours. If there arises any conflicting interest (as defined in the Indenture or in the Trust Indenture Act), it must eliminate such conflict or resign.

We maintain ordinary banking relationships and credit facilities with Wells Fargo Bank, National Association. In addition, Wells Fargo Bank, National Association is the trustee for certain of our affiliates’ other debt securities, is the transfer agent for Medtronic plc’s ordinary shares, and from time to time provides services relating to our investment management, stock repurchase and foreign currency hedging programs.

Listing

The notes are listed on the New York Stock Exchange. Medtronic Luxco will use commercially reasonable efforts to maintain such listing and satisfy the requirements for such continued listing as long as the notes are outstanding. The New York Stock Exchange is not a regulated market for the purposes of MiFID II.

Governing Law

The Indenture and the notes are governed by and construed in accordance with the laws of the State of New York. For the avoidance of doubt, the applicability of Articles 84 to 94-8 of the Luxembourg law dated August 10, 1915 on commercial companies, as amended, shall be excluded.

No holder of notes may initiate proceedings against Medtronic Luxco based on Article 98 of the Luxembourg law dated August 10, 1915 on commercial companies, as amended.

Book-Entry System; Delivery and Form

Global Clearance and Settlement

The notes of each series are issued in the form of one or more global notes in fully registered form, without coupons, and deposited with, or on behalf of, a common depositary, and registered in the name of the nominee of the common depositary, for, and in respect of interests held through, Euroclear and Clearstream. Except as described herein, certificates will not be issued in exchange for beneficial interests in the global notes.

Except as set forth below, the global notes may be transferred, in whole and not in part, only to Euroclear or Clearstream or their respective nominees.

Beneficial interests in the global notes are be represented, and transfers of such beneficial interests will be effected, through accounts of financial institutions acting on behalf of beneficial owners as direct or indirect participants in Euroclear or Clearstream. Those beneficial interests are in denominations of €100,000 and integral multiples of €1,000 in excess thereof. Investors may hold notes directly through Euroclear or Clearstream, if they are participants in such systems, or indirectly through organizations that are participants in such systems.

We have been advised by Clearstream and Euroclear, respectively, as follows:

Clearstream

Clearstream has advised that it is incorporated under the laws of Luxembourg and licensed as a bank and professional depositary. Clearstream holds securities for its participating organizations and facilitates the clearance and settlement of securities transactions among its participants through electronic book-entry changes in accounts of its participants, thereby eliminating the need for physical movement of certificates. Clearstream provides to its participants, among other things, services for safekeeping, administration, clearance and settlement of internationally traded securities and securities lending and borrowing. Clearstream interfaces with domestic markets in several countries. Clearstream has established an electronic bridge with the Euroclear Operator (as defined below) to facilitate the settlement of trades between the nominees of Clearstream and Euroclear. As a registered bank in Luxembourg, Clearstream is subject to regulation by the Luxembourg Commission for the Supervision of the Financial Sector. Clearstream customers are recognized financial institutions around the world, including underwriters, securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations and may include the underwriters. Indirect access to Clearstream is also available to others, such as banks, brokers, dealers and trust companies that clear through, or maintain a custodial relationship with, a Clearstream participant, either directly or indirectly.

Distributions with respect to notes held beneficially through Clearstream will be credited to cash accounts of Clearstream participants in accordance with its rules and procedures.

Euroclear

Euroclear has advised that it was created in 1968 to hold securities for its participants and to clear and settle transactions between Euroclear participants through simultaneous electronic book-entry delivery against payment, thereby eliminating the need for physical movement of certificates and any risk from lack of simultaneous transfers of securities and cash. Euroclear includes various other services, including securities lending and borrowing and interfaces with domestic markets in several countries. All operations are conducted by the Euroclear Operator, and all Euroclear securities clearance accounts and Euroclear cash accounts are accounts with the Euroclear Operator. Euroclear participants include banks (including central banks), securities brokers and dealers and other professional financial intermediaries and may include the underwriters. Indirect access to Euroclear is also available to other

firms that clear through or maintain a custodial relationship with a Euroclear participant, either directly or indirectly.

Securities clearance accounts and cash accounts with the Euroclear Operator are governed by the Terms and Conditions Governing Use of Euroclear and the related operating procedures of Euroclear, and applicable Belgian law (collectively, the “Terms and Conditions”). The Terms and Conditions govern transfers of securities and cash within Euroclear, withdrawals of securities and cash from Euroclear, and receipts of payments with respect to securities in Euroclear. All securities in Euroclear are held on a fungible basis without attribution of specific certificates to specific securities clearance accounts. The Euroclear Operator acts under the Terms and Conditions only on behalf of Euroclear participants, and has no records of or relationship with persons holding through Euroclear participants.

Distributions with respect to the notes held beneficially through Euroclear will be credited to the cash accounts of Euroclear participants in accordance with the Terms and Conditions.

Euroclear and Clearstream Arrangements

So long as Euroclear or Clearstream or their nominee or their common depositary is the registered holder of the global notes, Euroclear, Clearstream or such nominee, as the case may be, will be considered the sole owner or holder of the notes represented by such global notes for all purposes under the Indenture and the notes. Payments of principal, interest and additional amounts, if any, in respect of the global notes will be made to Euroclear, Clearstream, such nominee or such common depositary, as the case may be, as registered holder thereof. None of us, the trustee, any underwriter and any affiliate of any of the above or any person by whom any of the above is controlled (as such term is defined in the Securities Act) will have any responsibility or liability for any records relating to or payments made on account of beneficial ownership interests in the global notes or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.

Distributions of principal, premium, if any, and interest with respect to the global notes will be credited in euro to the extent received by Euroclear or Clearstream from the paying agent to the cash accounts of Euroclear or Clearstream customers in accordance with the relevant system’s rules and procedures.

Because Euroclear and Clearstream can only act on behalf of participants, who in turn act on behalf of indirect participants, the ability of a person having an interest in the global notes to pledge such interest to persons or entities which do not participate in the relevant clearing system, or otherwise take actions in respect of such interest, may be affected by the lack of a physical certificate in respect of such interest.

Initial Settlement

We understand that investors that hold their notes through Clearstream or Euroclear accounts will follow the settlement procedures that are applicable to conventional eurobonds in registered form. Subject to applicable procedures of Clearstream and Euroclear, notes will be credited to the securities custody accounts of Clearstream and Euroclear participants on the business day following the settlement date, for value on the settlement date.

Secondary Market Trading

Because the purchaser determines the place of delivery, it is important to establish at the time of trading of any notes where both the purchaser’s and seller’s accounts are located to ensure that settlement can be made on the desired value date.

We understand that secondary market trading between Clearstream and/or Euroclear participants will occur in the ordinary way following the applicable rules and operating procedures of Clearstream and Euroclear. Secondary market trading will be settled using procedures applicable to conventional eurobonds in global registered form.

Investors will only be able to make and receive deliveries, payments and other communications involving the notes through Clearstream and Euroclear on days when those systems are open for business. Those systems may not be open for business on days when banks, brokers and other institutions are open for business in the United States.

In addition, because of time-zone differences, there may be problems with completing transactions involving Clearstream and Euroclear on the same business day as in the United States. U.S. investors who wish to transfer their interests in the notes, or to make or receive a payment or delivery of the notes, on a particular day, may find that the transactions will not be performed until the next business day in Luxembourg or Brussels, depending on whether Clearstream or Euroclear is used.

Clearstream or Euroclear will credit payments to the cash accounts of Clearstream customers or Euroclear participants, as applicable, in accordance with the relevant system’s rules and procedures, to the extent received by its depositary. Clearstream or the Euroclear Operator, as the case may be, will take any other action permitted to be taken by a holder under the Indenture on behalf of a Clearstream customer or Euroclear participant only in accordance with its relevant rules and procedures.

Clearstream and Euroclear have agreed to the foregoing procedures in order to facilitate transfers of the notes among participants of Clearstream and Euroclear. However, they are under no obligation to perform or continue to perform those procedures, and they may discontinue those procedures at any time.

Exchange of Global Notes for Certificated Notes

Subject to certain conditions, the notes represented by the global notes are exchangeable for certificated notes in definitive form of like tenor in minimum denominations of €100,000 principal amount and multiples of €1,000 in excess thereof if:

a. the common depositary notifies us that it is unwilling, unable or no longer qualified to continue as depositary for the global notes and we fail to appoint a successor depositary within 90 calendar days;

b. Medtronic Luxco, at its option, notifies the trustee in writing that it elects to cause the issuance of certificated notes; or

c. there has occurred and is continuing an Event of Default with respect to the notes.

In all cases, certificated notes delivered in exchange for any global note or beneficial interest therein will be registered in the names, and issued in any approved denominations, requested by or on behalf of the common depositary (in accordance with its customary procedures).

Payments

Payments (including principal, premium and interest) and transfers with respect to notes in certificated form may be executed at the office or agency maintained for such purpose in London (initially the corporate trust office of the paying agent) or, at Medtronic Luxco’s option, by check mailed to the holders thereof at the respective addresses set forth in the register of holders of the notes (maintained by the registrar), provided that all payments (including principal, premium and interest) on notes in certificated form, for which the holders thereof have given wire transfer instructions, will be required to be made by wire transfer of immediately available funds to the accounts specified by the holders thereof. No service charge will be made for any registration of transfer, but payment of a sum sufficient to cover any tax or governmental charge payable in connection with that registration may be required.

EX-21

Exhibit 21

Medtronic plc and Subsidiaries

At April 26, 2019

Company	Jurisdiction of Formation
2074417 Alberta ULC	Canada
A&E Hangers Taiwan Co., Ltd.	Taiwan
A&E Products (Far East) Limited	Hong Kong
A&E Products de Honduras S.A.	Honduras
A&E Products do Brasil Ltda.	Brazil
A&E Products Group, Inc.	Delaware
Ablation Frontiers L.L.C.	Delaware
Accucomp (Pty.) Ltd.	South Africa
Accufusion (Pty.) Ltd.	South Africa
Advanced Absorbent Products Holdings Limited	United Kingdom
Advanced Medical Technologies GmbH	Germany
Advanced Uro-Solutions, L.L.C.	Tennessee
Aircraft Medical Ltd.	United Kingdom
Airox	France
Airox, Inc.	Delaware
Arterial Vascular Engineering Canada, Company	Canada
Arterial Vascular Engineering UK Limited	United Kingdom
ASE Partners SAS	France
ATS Acquisition Corp.	Minnesota
Auto Suture do Brasil Ltda.	Brazil
Auto Suture Holdings Pty Ltd	Australia
Auto Suture Puerto Rico, Inc.	Connecticut
Batts LLC	Delaware
Batts, Inc.	Delaware
Beacon Endoscopic LLC	Delaware
Beijing Libeier Bio-engineering Institute Co., Ltd.	China
Bellco Do Brasil	Brazil
Bellco Hoxen Medical (Hong Kong) Co. Limited	Hong Kong
Bellco Hoxen Medical (Shanghai) Co. Ltd.	China
Bellco S.r.l.	Italy
Between Investeringsgroep B.V.	Netherlands
Biostar Biomedikal Mühendislik Anonim Sirketi	Turkey
Bo Yao (Shanghai) Medical Device Co. Ltd.	China
Boryung Bellco Korea Ltd.	South Korea
CardioInsight Technologies Inc.	Delaware
Carlisle Philippines, Inc.	Philippines
Carmel Biosensors Ltd.	Israel
CCI Istanbul Teknolojik Hizmetler Limited Sirketi	Turkey
CDK U.K. Limited	United Kingdom
Changzhou InnoPedics Medical Device Co., Ltd	China
Changzhou Kangdi Medical Stapler Co., Ltd.	China
Changzhou Kanghui Medical Innovation Co., Ltd.	China
CircuLite GmbH	Germany

CircuLite, Inc.	Delaware
Clearum GmbH	Germany
Comercial Kendall (Chile) Limitada	Chile
Corventis Pte. Ltd.	Singapore
Covidien (China) Medical Devices Technology Co., Ltd.	China
Covidien (Gibraltar) Holding Limited	Gibraltar
Covidien (Gibraltar) Limited	Gibraltar
Covidien (HKSAR) Co., Limited	Hong Kong
Covidien (Proprietary) Limited	South Africa
Covidien (Shanghai) Management Consulting Co., Ltd.	China
Covidien (Thailand) Limited	Thailand
Covidien (UK) Commercial Limited	United Kingdom
Covidien (UK) Manufacturing Limited	United Kingdom
Covidien Adhesives Italia Srl	Italy
Covidien AG	Switzerland
Covidien Argentina S.A.	Argentina
Covidien Asia Investments Limited	Mauritius
Covidien Australia Pty Ltd	Australia
Covidien Canada Holdings (B) Cooperatie U.A.	Netherlands
Covidien Canada Holdings LLC	Delaware
Covidien Canada ULC	Canada
Covidien Caribbean, Inc.	Delaware
Covidien Delaware VI Corp.	Delaware
Covidien Deutschland GmbH	Germany
Covidien Eurasia LLC	Russia
Covidien Finance International GmbH	Switzerland
Covidien France Holdings, Inc.	Connecticut
Covidien Group Holdings Limited	Bermuda
Covidien Group S.a.r.l.	Luxembourg
Covidien Healthcare Holding UK Limited	United Kingdom
Covidien Healthcare International Trading (Shanghai) Co., Ltd.	China
Covidien Healthcare Trading (Shanghai) Co., Ltd.	China
Covidien Holding Inc.	Massachusetts
Covidien Holdings International Corporation	Delaware
Covidien Holdings Ireland Limited	Ireland
Covidien Holdings S.a.r.l.	Luxembourg
Covidien Hong Kong No.2 Limited	Hong Kong
Covidien International (US) Holdings A, LLC	Delaware
Covidien International Finance S.A.	Luxembourg
Covidien International S.a.r.l.	Luxembourg
Covidien Israel Holdings Ltd	Israel
Covidien Israel Investments Ltd	Israel
Covidien Israel Surgical Research Ltd	Israel
Covidien Japan, Inc.	Japan
Covidien Limited	Ireland
Covidien llc	Delaware
Covidien Logistics BVBA	Belgium
Covidien LP	Delaware
Covidien Lyon	France
Covidien Manufacturing Grenoble	France

Covidien Medical	Russia
Covidien Medical Products (Shanghai) Manufacturing L.L.C.	China
Covidien Peru S.A.	Peru
Covidien Philippines, Inc.	Philippines
Covidien Private Limited	Singapore
Covidien Pty Limited	Australia
Covidien Sales LLC	Delaware
Covidien Services Europe Limited	Ireland
Covidien Sigma Limited	Bermuda
Covidien Swiss Holding GmbH	Switzerland
Covidien Trevoux	France
Covidien UK Holding Ltd	United Kingdom
Covidien UK Limited	United Kingdom
Covidien Uruguay S.A.	Uruguay
Covidien US Holdings, Inc.	Delaware
Covidien Ventures Ltd.	Bermuda
Davis & Geck Caribe Limited	Cayman Islands
Diabeter Nederland B.V.	Netherlands
Epix Therapeutics Australia Pty Ltd	Australia
Epix Therapeutics, Inc.	Delaware
ev3 Australia Pty Limited	Australia
ev3 Canada Inc.	Canada
Ev3, Inc.	Delaware
First Lafayette Holdings LLC	Delaware
Floreane Medical Implants	France
GC Holdings, Inc.	Delaware
Georgia Packaging, LLC	Delaware
Given Imaging (Asia) Company Limited	Hong Kong
Given Imaging (Los Angeles) LLC	California
Given Imaging B.V.	Netherlands
Given Imaging do Brazil Ltda.	Brazil
Given Imaging Ltd.	Israel
Given Imaging Pty Limited	Australia
Given Imaging Vietnam Co., Ltd.	Vietnam
Given Imaging, Inc.	Delaware
Graphic Controls (Barbados), Ltd.	Barbados
Haemopharm Biofluids S.r.l.	Italy
Healthcare Aviation Trust	Maryland
Heartware (UK) Limited	United Kingdom
Heartware Hong Kong Limited	Hong Kong
HeartWare International, Inc.	Delaware
HeartWare, Inc.	Delaware
HET Systems, LLC	Delaware
I H S LLC	Russia
IHS Argentina SA	Argentina
IHS Health Services	Egypt
IHS Health Services Lebanon Sarl	Lebanon
IHS Health Services Pakistan (Private) Limited	Pakistan
IHS Managed Services SAS	Colombia
IHS SAGLIK HIZMETLERI LTD STI	Turkey

Inbrand Holdings Limited	United Kingdom
Inbrand Limited	United Kingdom
Inbrand UK Limited	United Kingdom
India Medtronic Private Limited	India
Integrated Health Solutions Chile S.A.	Chile
Integrated Health Solutions International Sàrl	Switzerland
Integrated Health Solutions Pty Ltd	Australia
Invatec S.p.A.	Italy
Invatec Technology Center GmbH	Switzerland
Kendall Company of South Africa (Pty) Limited, The	South Africa
Kendall de Mexico, S.A. de C.V.	Mexico
Kendall de Venezuela, C.A.	Venezuela
Kendall Innovadores en Cuidados al Paciente S.A.	Costa Rica
Kendall Ludlow Holding Corporation	Delaware
Kendall SAS	France
Kendall, S.A. (Panama)	Panama
KMS Colon, Panama, S.A.	Panama
KMS Montevideo, Uruguay, S.A.	Uruguay
Kyphon Cayman Ltd.	Cayman Islands
Kyphon South Africa (Proprietary) Ltd.	South Africa
La Trevoltiane	France
Laboratoire Soludia SAS	France
Lazarus Effect LLC	Delaware
Lazarus Effect, Inc.	Delaware
Life Design Systems, Inc.	Wisconsin
Magnolia Medical, LLC	Delaware
Makani II Unlimited Company	Ireland
Mallinckrodt DAR Srl	Italy
Mallinckrodt Holdings B.V.	Netherlands
Mallinckrodt Holdings, LLC	Delaware
Mallinckrodt Medical S.A.	Spain
Mallinckrodt Medical Unlimited Company	Ireland
Mallinckrodt US LLC	Delaware
Mareane	France
Mazor Robotics LLC	Delaware
Mazor Robotics Ltd.	Israel
Mazor Robotics Pte. Ltd	Singapore
MDT Turkey Finansal Danışmanlık Limited Şirketi	Turkey
Medefield Pty Limited	Australia
Medical Education Y. K.	Japan
Medical Medtronic Nigeria Limited	Nigeria
Medina Medical LLC	Delaware
Medina Medical, Inc.	Delaware
Medinse S de RL de CV	Mexico
Medtronic – Sequoia (Cayman) Innovation Investment Management Partners, Ltd	Cayman Islands
Medtronic (Africa) (Proprietary) Limited	South Africa
Medtronic (Chengdu) Management Consulting Co., Ltd.	China
Medtronic (Schweiz) A.G. (Medtronic (Suisse) S.A.)	Switzerland
Medtronic (Shanghai) Ltd.	China
Medtronic (Shanghai) Management Co. Ltd.	China

Medtronic (Taiwan) Ltd.	Taiwan
Medtronic (Thailand) Limited	Thailand
Medtronic 3F Therapeutics, Inc.	Delaware
Medtronic Ablation Frontiers LLC	Delaware
Medtronic Ablation Reorganization LLC	Delaware
Medtronic Adriatic d.o.o.	Croatia
Medtronic Advanced Energy Acquisition LLC	Delaware
Medtronic Advanced Energy LLC	Delaware
Medtronic Advanced Energy Luxembourg S.a.r.l.	Luxembourg
Medtronic AF Acquisition LLC	Delaware
Medtronic AF Luxembourg S.a r.l.	Luxembourg
Medtronic AG	Switzerland
Medtronic Aktiebolag	Sweden
Medtronic Angiolink, Inc.	Delaware
Medtronic Ardian Acquisition LLC	Delaware
Medtronic Ardian LLC	Delaware
Medtronic Ardian Luxembourg S.a.r.l.	Luxembourg
Medtronic Asia, Ltd.	Minnesota
Medtronic ATS Medical, Inc.	Minnesota
Medtronic Australasia Pty Ltd	Australia
Medtronic B.V.	Netherlands
Medtronic Bakken Research Center B.V.	Netherlands
Medtronic Bangladesh Pvt. Ltd.	Bangladesh
Medtronic Belgium S.A./N.V.	Belgium
Medtronic Bio-Medicus, Inc.	Minnesota
Medtronic BioPharma B.V.	Netherlands
Medtronic BioPharma Sàrl	Switzerland
Medtronic Braun, Inc.	Colorado
Medtronic Bulgaria EOOD	Bulgaria
Medtronic Canada ULC	Canada
Medtronic Care Management Services, LLC	Minnesota
Medtronic Chile SpA	Chile
Medtronic China Kanghui Holdings	Cayman Islands
Medtronic China Venture Fund (Cayman), L.P.	Cayman Islands
Medtronic China, LLC.	Minnesota
Medtronic Colombia S.A.	Colombia
Medtronic Comercial Ltda.	Brazil
Medtronic CoreValve LLC	Delaware
Medtronic CryoCath LP	Canada
Medtronic CV Luxembourg S.a.r.l.	Luxembourg
Medtronic CV Reorganization, LLC	Delaware
Medtronic CV, LLC	Delaware
Medtronic Czechia s.r.o.	Czech Republic
Medtronic Danmark A/S	Denmark
Medtronic Diabetes (Chengdu) Co., Ltd.	China
Medtronic do Brasil Ltda.	Brazil
Medtronic Dominican Republic S.A.S.	Dominican Republic
Medtronic Dominicana (Manufactura), S.A.	Dominican Republic
Medtronic Egypt LLC	Egypt
Medtronic Empalme S. de R.L. de C.V.	Mexico

Medtronic Engineering and Innovation Center Private Limited	India
Medtronic Europe BVBA/SPRL	Belgium
Medtronic Europe Sàrl	Switzerland
Medtronic Fabrication SAS	France
Medtronic Finance Holdings ULC	Cayman Islands
Medtronic Finance Hungary Kft.	Hungary
Medtronic Finland Oy	Finland
Medtronic France S.A.S.	France
Medtronic G.m.b.H.	Germany
Medtronic Global Holdings GP S.à r.l.	Luxembourg
Medtronic Global Holdings S.C.A.	Luxembourg
Medtronic Group Holding, Inc.	Minnesota
Medtronic Hellas Medical Device Commercial S.A.	Greece
Medtronic Holding B.V.	Netherlands
Medtronic Holding Company B.V.	Netherlands
Medtronic Holding Company Sarl	Switzerland
Medtronic Holding Hungary Kft.	Hungary
Medtronic Holding Switzerland G.m.b.H.	Switzerland
Medtronic Holding, Inc.	Minnesota
Medtronic Holdings Sarl	Luxembourg
Medtronic Holdings Unlimited	British Virgin Islands
Medtronic Hong Kong Limited	Hong Kong
Medtronic Hong Kong Medical Limited	Hong Kong
Medtronic Hungaria Kereskedelmi Kft	Hungary
Medtronic Ibérica S.A.	Spain
Medtronic Integrated Health Solutions LLC	Minnesota
Medtronic International Holding LLC	Minnesota
Medtronic International Investment LLC	Minnesota
Medtronic International IP GmbH	Switzerland
Medtronic International Technology, Inc.	Minnesota
Medtronic International Trading Pte. Ltd.	Singapore
Medtronic International Trading Sàrl	Switzerland
Medtronic International Trading, Inc.	Minnesota
Medtronic International, Ltd.	Delaware
Medtronic Interventional Vascular, Inc.	Massachusetts
Medtronic Invatec LLC	Delaware
Medtronic Investment Holdings Private Limited	Singapore
Medtronic IP Holding International Luxembourg S.a.r.l.	Luxembourg
Medtronic Ireland Limited	Ireland
Medtronic Ireland Manufacturing Unlimited Company	Ireland
Medtronic Irish Finco Unlimited Company	Ireland
Medtronic Italia S.p.A.	Italy
Medtronic Japan Co., Ltd.	Japan
Medtronic Jolife LLC	Delaware
Medtronic Kazakhstan Limited Liability Partnership	Kazakhstan
Medtronic KL Holdings LLC	Minnesota
Medtronic Korea Ltd.	South Korea
Medtronic Lateral, Inc.	Delaware
Medtronic Latin America, Inc.	Minnesota
Medtronic Limited	United Kingdom

Medtronic LLC	Russia
Medtronic Logistics LLC	Minnesota
Medtronic Luxembourg Global Holdings S.à r.l.	Luxembourg
Medtronic Malaysia Sdn. Bhd.	Malaysia
Medtronic Medical Device (Chengdu) Co., Ltd.	China
Medtronic Medikal Teknoloji Ticaret Limited Sirketi	Turkey
Medtronic Mediterranean SAL	Lebanon
Medtronic META FZ-LLC	United Arab Emirates
Medtronic Mexico S. de R.L. de C.V. (Tijuana)	Mexico
Medtronic Micro Motion Sciences, Inc.	Delaware
Medtronic MiniMed, Inc.	Delaware
Medtronic Monitoring, Inc.	Delaware
Medtronic Navigation Israel Ltd.	Israel
Medtronic Navigation, Inc.	Delaware
Medtronic New Zealand Limited	New Zealand
Medtronic Norge AS	Norway
Medtronic Oesterreich G.m.b.H.	Austria
Medtronic Pacific Trading, Inc.	Minnesota
Medtronic Pakistan (Private) Limited	Pakistan
Medtronic Philippines, Inc.	Philippines
Medtronic Poland Finance Sp.z.o.o.	Poland
Medtronic Poland Sp. z o.o.	Poland
Medtronic Portugal, Lda	Portugal
Medtronic PS Acquisition LLC	Delaware
Medtronic PS Medical, Inc.	California
Medtronic PS Reorganization LLC	Delaware
Medtronic Puerto Rico Operations Co.	Cayman Islands
Medtronic Romania SRL	Romania
Medtronic S. de R.L. de C.V. (Mexico City)	Mexico
Medtronic S.A.I.C.	Argentina
Medtronic Saudi Arabia Company	Saudi Arabia
Medtronic Servicios S. de R.L. de C.V.	Mexico
Medtronic SG, LLC	Delaware
Medtronic Shared Services Americas S.A.S.	Colombia
Medtronic Shared Services SRL	Costa Rica
Medtronic Singapore Operations Pte. Ltd.	Singapore
Medtronic Slovakia s.r.o.	Slovakia
Medtronic Sofamor Danek Co., Ltd.	Japan
Medtronic Sofamor Danek Deggendorf GmbH	Germany
Medtronic Sofamor Danek South Africa (Proprietary) Limited	South Africa
Medtronic Sofamor Danek USA, Inc.	Tennessee
Medtronic Sofamor Danek, Inc.	Indiana
Medtronic Srbija d.o.o. Beograd-Novi Beograd	Serbia
Medtronic Sweden Finance AB	Sweden
Medtronic Trading Ltd.	Israel
Medtronic Trading NL BV	Netherlands
Medtronic Transneuronix, Inc.	Delaware
Medtronic Ukraine Limited Liability Company	Ukraine
Medtronic Urinary Solutions, Inc.	Ohio
Medtronic USA, Inc.	Minnesota

Medtronic Vascular Galway Unlimited Company	Ireland
Medtronic Vascular Holdings Unlimited Company	Ireland
Medtronic Vascular, Inc.	Delaware
Medtronic Ventor Technologies Ltd.	Israel
Medtronic Vertelink, Inc.	California
Medtronic Vietnam Company Limited	Vietnam
Medtronic VT, LLC	Delaware
Medtronic World Trade Corporation	Minnesota
Medtronic Xomed, Inc.	Delaware
Medtronic, Inc.	Minnesota
Medtronic, trgovina z medicinsko tehnologijo in opremo d.o.o.	Slovenia
Micro Therapeutics, Inc.	Maryland
MiniMed Distribution Corp.	Delaware
MiniMed Pty Ltd	Australia
MMJ, S.A. de C.V.	Mexico
MSCH LLC	Delaware
N.G.C. Medical Srl	Italy
NayaMed International Sàrl	Switzerland
NayaMed International, S.A.	Spain
Nederelandse Obesitas Kliniek Zuid B.V.	Netherlands
Nederlandse Obesitas Kliniek B.V.	Netherlands
Nederlandse Obesitas Kliniek West B.V.	Netherlands
Nellcor Puritan Bennett Ireland Holdings Unlimited Company	Ireland
Nellcor Puritan Bennett Ireland Unlimited Company	Ireland
Nellcor Puritan Bennett LLC	Delaware
Nellcor Puritan Bennett Mexico, S.A. de C.V.	Mexico
New Wave Surgical, LLC	Delaware
Newport Medical (Asia) Limited	Hong Kong
Newport Medical Instruments, Inc	California
NGC Medical UK Limited	United Kingdom
Nobles Medical Technology, Inc.	Delaware
Nurtino Health Ltd	Israel
Nutrino, Inc.	Delaware
Obesitas International B.V.	Netherlands
Obesitas Nederland B.V.	Netherlands
Old Colony State Insurance Company	Vermont
Oridion Capnography, Inc.	Massachusetts
Oridion Medical 1987 Ltd.	Israel
Oridion Systems Ltd.	Israel
Osteotech, Inc.	Delaware
Panmedica Pty Limited	Australia
Plastics Holding Corporation	Nevada
Polyken Technologies Europe, Inc.	Delaware
Polysuture Industria e Comercio Ltda.	Brazil
PT Medtronic Indonesia	Indonesia
PT. Covidien Indonesia	Indonesia
PTB International LLC	Delaware
Quro Obesity Marketing Management LLC	United Arab Emirates
Raychem Tecnologias, S. de R.L. de C.V.	Mexico
Retail Group de Mexico S.A. de C.V.	Mexico

Reverse Medical LLC	Delaware
RF Surgical Systems LLC	Minnesota
Sanatis GmbH	Germany
Sapheon LLC	California
Setagon, Inc.	Delaware
Shanghai Zhikang Medical Devices Co., Ltd.	China
Sherwood Medical Company I	Delaware
Sherwood Medical Industries Pty Ltd	Australia
Societe De Fabrication de Material Orthopedique En Abrege Sofamor	France
Sofradim Production	France
Sophono GmbH	Germany
Sophono, Inc.	Colorado
SpinalGraft Technologies, LLC	Tennessee
Stentex Holding Sarl	Luxembourg
superDimension Ltd.	Israel
superDimension, Inc.	Delaware
Suzhou Medtronic Venture Capital Partnership Enterprise (L.P.)	China
Suzhou Medtronic-Sequoia Innovation Investment Management Co., Ltd.	China
Suzhou Mei Zhong Capital Investment Management Co., Ltd.	China
TGM Medical, Inc.	Delaware
THC Holdings Limited	Thailand
THC Pool LLC	Massachusetts
Tissue Science Laboratories Limited	United Kingdom
Trigate (Pty.) Ltd.	South Africa
Trinance (Pty.) Ltd.	South Africa
Twelve Australia Pty Ltd	Australia
Twelve Medical Limited	United Kingdom
Twelve, Inc.	Delaware
TYRX, Inc.	Delaware
U.S.S.C. Puerto Rico (NY), Inc.	New York
U.S.S.C. Puerto Rico, Inc.	Cayman Islands
United States Surgical Corporation	Delaware
USSC Financial Services Inc.	Connecticut
USSC FSC, Inc.	Barbados
USSC Medical GmbH	Germany
Valera Holdings S.a.r.l.	Luxembourg
Valleylab (Australia) Pty. Ltd	Australia
Valleylab Holding Corporation	Delaware
Verdana Holdings Limited	Gibraltar
Visionsense Corp.	Delaware
Visualase, Inc.	Delaware
Vitatron Holding B.V.	Netherlands
Vitatron Medical España, S.A.	Spain
Vitatron Portugal - Comércio e Distribuição de Dispositivos Médicos, Lda	Portugal
VNUS Medical Technologies II, Inc.	Delaware
Warsaw Orthopedic Inc.	Indiana
WEM Equipamentos Electronicos Ltda.	Brazil
World Heart Corporation	Delaware
Zephyr Technology LLC	Delaware
Zorginitiatieven B.V.	Netherlands

EX-23

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-215895) and on Form S-8 (Nos. 333-201737 and 333-221962) of Medtronic plc of our report dated June 21, 2019 relating to the financial statements, financial statement schedule and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

Minneapolis, Minnesota

June 21, 2019

EX-24

Exhibit 24

POWER OF ATTORNEY

Each of the undersigned directors of Medtronic Public Limited Company, an Irish public limited company, hereby constitutes and appoints each of BRADLEY E. LERMAN and MARTHA HA, acting individually or jointly, their true and lawful attorneys-in-fact and agents, with full power to act for them and in their name, place and stead, in any and all capacities, to do any and all acts and execute any and all documents which either such attorney and agent may deem necessary or desirable to enable Medtronic Public Limited Company to comply with the Securities Exchange Act of 1934, as amended, and any rules, regulations and requirements of the Securities and Exchange Commission in respect thereof, in connection with the filing with the Commission of Medtronic’s Annual Report on Form 10-K for the fiscal year ended April 26, 2019, including specifically, but without limiting the generality of the foregoing, power and authority to sign the names of the undersigned directors to the Form 10-K and to any instruments and documents filed as part of or in connection with the Form 10-K or any amendments thereto; and the undersigned hereby ratify and confirm all actions taken and documents signed by each said attorney and agent as provided herein.

The undersigned have set their hands this 20^th day of June, 2019.

/s/ Richard H. Anderson	/s/ Michael O. Leavitt
Richard H. Anderson	Michael O. Leavitt
/s/ Craig Arnold	/s/ James T. Lenehan
Craig Arnold	James T. Lenehan
/s/ Scott C. Donnelly	/s/ Elizabeth G. Nabel
Scott C. Donnelly	Elizabeth G. Nabel
/s/ Andrea Goldsmith, Ph.D.	/s/ Denise M. O’Leary
Andrea Goldsmith, Ph.D.	Denise M. O’Leary
/s/ Randall J. Hogan	/s/ Kendall J. Powell
Randall J. Hogan	Kendall J. Powell
/s/ Omar Ishrak
Omar Ishrak

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the

Sarbanes-Oxley Act of 2002

I, Omar Ishrak, certify that:

1. I have reviewed this Annual Report on Form 10-K of Medtronic Public Limited Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

June 21, 2019	/s/ Omar Ishrak
	Omar Ishrak
	Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the

Sarbanes-Oxley Act of 2002

I, Karen L. Parkhill, certify that:

1. I have reviewed this Annual Report on Form 10-K of Medtronic Public Limited Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

June 21, 2019	/s/ Karen L. Parkhill
	Karen L. Parkhill
	Executive Vice President and
	Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer

Pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002

In connection with this annual report on Form 10-K of Medtronic Public Limited Company for the fiscal year ended April 26, 2019, the undersigned hereby certifies, in his capacity as Chief Executive Officer of Medtronic Public Limited Company, for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in this report fairly presents, in all material respects, the financial condition and results of operations of Medtronic Public Limited Company.

June 21, 2019	/s/ Omar Ishrak
	Omar Ishrak
	Chairman and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification of Chief Financial Officer

Pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002

In connection with this annual report on Form 10-K of Medtronic Public Limited Company for the fiscal year ended April 26, 2019, the undersigned hereby certifies, in her capacity as Chief Financial Officer of Medtronic Public Limited Company, for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in this report fairly presents, in all material respects, the financial condition and results of operations of Medtronic Public Limited Company.

June 21, 2019	/s/ Karen L. Parkhill
	Karen L. Parkhill
	Executive Vice President and
	Chief Financial Officer

XML

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
	Apr. 26, 2019	Jun. 18, 2019	Oct. 26, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Medtronic plc
Entity Central Index Key	0001613103
Document Period End Date	Apr. 26, 2019
Current Fiscal Year End Date	--04-26
Document Type	10-K
Amendment Flag	false
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 120.8
Entity Ordinary Shares Outstanding		1,341,156,703
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019

XML

Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Apr. 26, 2019	Jan. 25, 2019	Oct. 26, 2018	Jul. 27, 2018	Apr. 27, 2018	Jan. 26, 2018	Oct. 27, 2017	Jul. 28, 2017	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Income Statement [Abstract]
Net sales	$ 8,146	$ 7,546	$ 7,481	$ 7,384	$ 8,144	$ 7,369	$ 7,050	$ 7,390	$ 30,557	$ 29,953	$ 29,710
Costs and expenses:
Cost of products sold									9,155	9,067	9,294
Research and development expense									2,330	2,256	2,193
Selling, general, and administrative expense									10,418	10,238	10,018
Amortization of intangible assets									1,764	1,823	1,980
Restructuring charges, net									198	30	303
Certain litigation charges									166	61	300
Gain on sale of businesses									0	(697)	0
Other operating expense, net									258	535	239
Operating profit (loss)									6,268	6,640	5,383
Other non-operating income, net									(373)	(181)	(313)
Interest expense									1,444	1,146	1,094
Income (loss) before income taxes									5,197	5,675	4,602
Income tax provision									547	2,580	578
Net income (loss)	1,182	1,271	1,120	1,077	1,465	(1,392)	2,013	1,009	4,650	3,095	4,024
Net (income) loss attributable to noncontrolling interests									(19)	9	4
Net income (loss) attributable to Medtronic	$ 1,172	$ 1,269	$ 1,115	$ 1,075	$ 1,460	$ (1,389)	$ 2,017	$ 1,016	$ 4,631	$ 3,104	$ 4,028
Basic earnings per share (in dollars per share)	$ 0.87	$ 0.95	$ 0.83	$ 0.79	$ 1.08	$ (1.03)	$ 1.49	$ 0.75	$ 3.44	$ 2.29	$ 2.92
Diluted earnings per share (in dollars per share)	$ 0.87	$ 0.94	$ 0.82	$ 0.79	$ 1.07	$ (1.03)	$ 1.48	$ 0.74	$ 3.41	$ 2.27	$ 2.89
Basic weighted average shares outstanding (in shares)									1,346.4	1,356.7	1,378.9
Diluted weighted average shares outstanding (in shares)									1,357.5	1,368.2	1,391.4

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 4,650	$ 3,095	$ 4,024
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on investment securities	102	(103)	38
Translation adjustment	(1,375)	1,184	(977)
Net investment hedge	88	0	0
Net change in retirement obligations	(191)	167	68
Unrealized gain (loss) on cash flow hedges	401	(218)	127
Other comprehensive (loss) income	(975)	1,030	(744)
Comprehensive income including noncontrolling interests	3,675	4,125	3,280
Comprehensive (income) loss attributable to noncontrolling interests	(16)	9	3
Comprehensive income attributable to Medtronic	$ 3,659	$ 4,134	$ 3,283

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Apr. 26, 2019	Apr. 27, 2018
Current assets:
Cash and cash equivalents	$ 4,393	$ 3,669
Investments	5,455	7,558
Accounts receivable, less allowances of $190 and $193, respectively	6,222	5,987
Inventories, net	3,753	3,579
Other current assets	2,144	2,187
Total current assets	21,967	22,980
Property, plant, and equipment, net	4,675	4,604
Goodwill	39,959	39,543
Other intangible assets, net	20,560	21,723
Tax assets	1,519	1,465
Other assets	1,014	1,078
Total assets	89,694	91,393
Current liabilities:
Current debt obligations	838	2,058
Accounts payable	1,953	1,628
Accrued compensation	2,189	1,988
Accrued income taxes	567	979
Other accrued expenses	2,925	3,431
Total current liabilities	8,472	10,084
Long-term debt	24,486	23,699
Accrued compensation and retirement benefits	1,651	1,425
Accrued income taxes	2,838	3,051
Deferred tax liabilities	1,278	1,423
Other liabilities	757	889
Total liabilities	39,482	40,571
Commitments and contingencies (Notes 3, 17, and 19)
Shareholders’ equity:
Ordinary shares— par value $0.0001, 2.6 billion shares authorized, 1,340,697,595 and 1,354,218,154 shares issued and outstanding, respectively	0	0
Additional paid-in capital	26,532	28,127
Retained earnings	26,270	24,379
Accumulated other comprehensive loss	(2,711)	(1,786)
Total shareholders’ equity	50,091	50,720
Noncontrolling interests	121	102
Total equity	50,212	50,822
Total liabilities and equity	$ 89,694	$ 91,393

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Apr. 26, 2019	Apr. 27, 2018
Statement of Financial Position [Abstract]
Allowances for accounts receivable	$ 190	$ 193
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	2,600,000,000	2,600,000,000
Common stock, issued (in shares)	1,340,697,595	1,354,218,154
Common stock, outstanding (in shares)	1,340,697,595	1,354,218,154

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Consolidated Statements of Equity - USD ($) $ in Millions	Total	Total Shareholders’ Equity	Ordinary Shares	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests
Beginning balance (in shares) at Apr. 29, 2016			1,399,000,000
Beginning balance at Apr. 29, 2016	$ 51,977	$ 51,977	$ 0	$ 32,227	$ 21,618	$ (1,868)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	4,024	4,028			4,028		(4)
Other comprehensive (loss) income	(744)	(745)				(745)	1
Dividends to shareholders	(2,376)	(2,376)			(2,376)
Issuance of shares under stock purchase and award plans (in shares)			13,000,000
Issuance of shares under stock purchase and award plans	428	428		428
Repurchase of ordinary shares (in shares)			(43,000,000)
Repurchase of ordinary shares	(3,544)	(3,544)		(3,544)
Tax benefit from exercise of stock-based awards	92	92		92
Stock-based compensation	348	348		348
Changes to noncontrolling ownership interests	125						125
Ending balance (in shares) at Apr. 28, 2017			1,369,000,000
Ending balance at Apr. 28, 2017	50,330	50,208	$ 0	29,551	23,270	(2,613)	122
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	3,095	3,104			3,104		(9)
Other comprehensive (loss) income	1,030	1,030				1,030
Dividends to shareholders	(2,494)	(2,494)			(2,494)
Issuance of shares under stock purchase and award plans (in shares)			10,000,000
Issuance of shares under stock purchase and award plans	329	329		329
Repurchase of ordinary shares (in shares)			(25,000,000)
Repurchase of ordinary shares	(2,097)	(2,097)		(2,097)
Stock-based compensation	344	344		344
Changes to noncontrolling ownership interests	$ (11)						(11)
Ending balance (in shares) at Apr. 27, 2018	1,354,218,154		1,354,000,000
Ending balance at Apr. 27, 2018	$ 50,822	50,720	$ 0	28,127	24,379	(1,786)	102
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	4,650	4,631			4,631		19
Other comprehensive (loss) income	(975)	(972)				(972)	(3)
Dividends to shareholders	(2,693)	(2,693)			(2,693)
Issuance of shares under stock purchase and award plans (in shares)			18,000,000
Issuance of shares under stock purchase and award plans	923	923		923
Repurchase of ordinary shares (in shares)			(31,000,000)
Repurchase of ordinary shares	(2,808)	(2,808)		(2,808)
Stock-based compensation	290	290		290
Changes to noncontrolling ownership interests	$ 3						3
Ending balance (in shares) at Apr. 26, 2019	1,340,697,595		1,341,000,000
Ending balance at Apr. 26, 2019	$ 50,212	$ 50,091	$ 0	$ 26,532	$ 26,270	$ (2,711)	$ 121

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Consolidated Statements of Equity (Parenthetical) - $ / shares	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Statement of Stockholders' Equity [Abstract]
Dividends to shareholders (usd per share)	$ 2.00	$ 1.84	$ 1.72

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Operating Activities:
Net income	$ 4,650	$ 3,095	$ 4,024
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,659	2,644	2,917
Provision for doubtful accounts	78	52	39
Deferred income taxes	(304)	(919)	(459)
Stock-based compensation	290	344	348
Loss on debt extinguishment	457	38	0
Gain on sale of businesses	0	(697)	0
Investment loss	0	227	0
Other, net	257	73	(128)
Change in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable, net	(581)	(275)	(75)
Inventories, net	(274)	(192)	(227)
Accounts payable and accrued liabilities	399	65	356
Other operating assets and liabilities	(624)	229	85
Net cash provided by operating activities	7,007	4,684	6,880
Investing Activities:
Acquisitions, net of cash acquired	(1,827)	(137)	(1,324)
Proceeds from sale of businesses	0	6,058	0
Additions to property, plant, and equipment	(1,134)	(1,068)	(1,254)
Purchases of investments	(2,532)	(3,200)	(4,371)
Sales and maturities of investments	4,683	4,227	5,356
Other investing activities, net	36	(22)	22
Net cash (used in) provided by investing activities	(774)	5,858	(1,571)
Financing Activities:
Change in current debt obligations, net	(713)	(249)	906
Issuance of long-term debt	7,794	21	2,140
Payments on long-term debt	(7,948)	(7,370)	(863)
Dividends to shareholders	(2,693)	(2,494)	(2,376)
Issuance of ordinary shares	992	403	428
Repurchase of ordinary shares	(2,877)	(2,171)	(3,544)
Other financing activities	14	(94)	26
Net cash used in financing activities	(5,431)	(11,954)	(3,283)
Effect of exchange rate changes on cash and cash equivalents	(78)	114	65
Net change in cash and cash equivalents	724	(1,298)	2,091
Cash and cash equivalents at beginning of period	3,669	4,967	2,876
Cash and cash equivalents at end of period	4,393	3,669	4,967
Cash paid for:
Income taxes	1,558	2,542	1,029
Interest	$ 973	$ 1,147	$ 1,134

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Summary of Significant Accounting Policies

12 Months Ended

Apr. 26, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Nature of Operations Medtronic plc (Medtronic or the Company) is among the world's largest medical technology, services, and solutions companies – alleviating pain, restoring health, and extending life for millions of people around the world. The Company provides innovative products and therapies to serve hospitals, physicians, clinicians, and patients. Medtronic was founded in 1949 and is headquartered in Dublin, Ireland.

Principles of Consolidation The consolidated financial statements include the accounts of Medtronic plc, its wholly-owned subsidiaries, entities for which the Company has a controlling financial interest, and variable interest entities for which the Company is the primary beneficiary. Intercompany transactions and balances have been fully eliminated in consolidation. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. For the purpose of providing more concise consolidated statements of income, amounts previously reported in acquisition-related items were reclassified to selling, general, and administrative expense and other operating expense, net; amounts previously reported in divestiture-related items were reclassified to selling, general, and administrative expense; amounts previously reported in special charge were reclassified to other operating expense, net, and amounts previously reported in investment loss and interest income were reclassified to other non-operating income, net.

Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States (U.S.) (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used when accounting for items such as income taxes, contingencies, intangible asset, and liability valuations. Actual results may or may not differ from those estimates.

Fiscal Year-End The Company utilizes a 52/53-week fiscal year, ending the last Friday in April, for the presentation of its consolidated financial statements and related notes thereto at April 26, 2019 and April 27, 2018 and for each of the three fiscal years ended April 26, 2019 (fiscal year 2019), April 27, 2018 (fiscal year 2018), and April 28, 2017 (fiscal year 2017). Fiscal years 2019, 2018, 2017 were 52-week years.

Cash Equivalents The Company considers highly liquid investments with maturities of three months or less from the date of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value.

Investments The Company invests in marketable debt and equity securities, investments that do not have readily determinable fair values, and investments accounted for under the equity method.

Marketable debt securities are classified and accounted for as available-for-sale. These investments are recorded at fair value in the consolidated balance sheets. The change in fair value for available-for-sale securities is recorded, net of taxes, as a component of accumulated other comprehensive loss on the consolidated balance sheets. The Company determines the appropriate classification of its investments in marketable debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. The classification of marketable debt securities as current or long-term is based on the nature of the securities and the availability for use in current operations consistent with the Company's management of its capital structure and liquidity.

Certain of the Company’s investments in marketable equity securities and other securities are long-term, strategic investments in companies that are in various stages of development and are included in other assets on the consolidated balance sheets. Marketable equity securities are recorded at fair value in the consolidated balance sheets. The change in fair value of marketable equity securities is recognized within other non-operating income, net in the consolidated statements of income. Investments without readily determinable fair values that do not qualify for the practical expedient to estimate fair value using the net asset value per share or its equivalent are accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investments of the issuer. This election is made for each investment separately and is reassessed at each reporting period as to whether the investment continues to qualify for this election. At each reporting period, the Company makes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. Equity securities accounted for under the equity method are initially recorded at the amount of the Company’s investment and are adjusted each period for the Company’s share of the investee’s income or loss and dividends paid. Securities accounted for under the equity method are reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company’s investment may not be recoverable.

Accounts Receivable and Allowance for Doubtful Accounts The Company grants credit to customers in the normal course of business and maintains an allowance for doubtful accounts for potential credit losses. When evaluating allowances for doubtful accounts, the Company considers various factors, including historical experience and customer-specific information. Uncollectible accounts are written-off against the allowance when it is deemed that a customer account is uncollectible.

Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. The Company reduces the carrying value of inventories for items that are potentially excess, obsolete, or slow-moving based on changes in customer demand, technology developments, or other economic factors.

Property, Plant, and Equipment Property, plant, and equipment is stated at cost. Additions and improvements that extend the lives of the assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred. The Company assesses property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of property, plant, and equipment asset groupings may not be recoverable. The Company utilizes the straight-line method of depreciation over the estimated useful lives of the various assets. The cost of interest that is incurred in connection with ongoing construction projects is capitalized using a weighted average interest rate. These costs are included in property, plant, and equipment and amortized over the useful life of the related asset. Upon retirement or disposal of property, plant, and equipment, the costs and related amounts of accumulated depreciation or amortization are eliminated from the asset and accumulated depreciation accounts. The difference, if any, between the net asset value and the proceeds, is recognized in earnings.

Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the estimated fair value of net assets of acquired businesses. In accordance with U.S. GAAP, goodwill is not amortized. The Company assesses goodwill for impairment annually in the third quarter of the fiscal year and whenever an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is performed at a reporting unit level. There were no changes in reporting units during fiscal year 2019. The test for impairment of goodwill requires the Company to make several estimates about fair value, most of which are based on projected future cash flows. The Company calculates the excess of each reporting unit's fair value over its carrying amount, including goodwill, utilizing a discounted cash flow analysis. An impairment loss is recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair value of the reporting unit.

Intangible assets include patents, trademarks, tradenames, customer relationships, purchased technology, and in-process research and development (IPR&D). Intangible assets with a definite life are amortized on a straight-line basis with estimated useful lives typically ranging from three to 20 years. Amortization is recognized within amortization of intangible assets in the consolidated statements of income. Intangible assets with a definite life are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset (asset group) may not be recoverable. When events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable, the Company calculates the excess of an intangible asset's carrying value over its undiscounted future cash flows. If the carrying value is not recoverable, an impairment loss is recognized based on the amount by which the carrying value exceeds the fair value. The inputs used in the fair value analysis fall within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value.

Acquired IPR&D represents the fair value assigned to those research and development projects that were acquired in a business combination for which the related products have not received regulatory approval and have no alternative future use. IPR&D is capitalized at its fair value as an indefinite-lived intangible asset, and any development costs incurred after the acquisition are expensed as incurred. The fair value of IPR&D is determined by estimating the future cash flows of each project and discounting the net cash flows back to their present values. Upon achieving regulatory approval or commercial viability for the related product, the indefinite-lived intangible asset is accounted for as a definite-lived asset and is amortized on a straight-line basis over the estimated useful life. If the project is not completed or is terminated or abandoned, the Company may have an impairment related to the IPR&D which is charged to expense. Indefinite-lived intangible assets are tested for impairment annually in the third quarter of the fiscal year and whenever events or changes in circumstances indicate that the carrying amount may be impaired. Impairment is calculated as the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted future cash flow analysis. IPR&D acquired outside of a business combination is expensed immediately.

Contingent Consideration Certain of the Company’s business combinations involve potential payment of future consideration that is contingent upon the achievement of certain product development milestones and/or contingent on the acquired business reaching certain performance milestones. The Company records contingent consideration at fair value at the date of acquisition based on the consideration expected to be transferred, estimated as the probability-weighted future cash flows, discounted back to present value. The fair value of contingent consideration is measured using projected payment dates, discount rates, probabilities of payment, and projected revenues (for revenue-based considerations). Projected revenues are based on the Company’s most recent internal operational budgets and long-range strategic plans. The discount rate used is determined at the time of measurement in accordance with accepted valuation methodologies. Changes in projected revenues, probabilities of payment, discount rates, and projected payment dates may result in adjustments to the fair value measurements. Contingent consideration is remeasured each reporting period using Level 3 inputs, and the change in fair value, including accretion for the passage of time, is recognized as income or expense within other operating expense, net in the consolidated statements of income. Contingent consideration payments made soon after the acquisition date are classified as investing activities in the consolidated statements of cash flows. Contingent consideration payments not made soon after the acquisition date that are related to the acquisition date fair value are

reported as financing activities in the consolidated statements of cash flows, and amounts paid in excess of the original acquisition date fair value are reported as operating activities in the consolidated statements of cash flows.

Self-Insurance The Company self-insures the majority of its insurable risks, including medical and dental costs, disability coverage, physical loss to property, business interruptions, workers’ compensation, comprehensive general, and product liability. Insurance coverage is obtained for risks required to be insured by law or contract. The Company uses claims data and historical experience, as applicable, to estimate liabilities associated with the exposures that the Company has self-insured.

Retirement Benefit Plan Assumptions The Company sponsors various retirement benefit plans, including defined benefit pension plans, post-retirement medical plans, defined contribution savings plans, and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. See Note 16 for assumptions used in determining pension and post-retirement benefit costs and liabilities.

Derivatives The Company recognizes all derivative financial instruments in its consolidated financial statements at fair value in accordance with authoritative guidance on derivatives and hedging, and presents assets and liabilities associated with derivative financial instruments on a gross basis in the consolidated financial statements. For derivative instruments that are designated and qualify as hedging instruments, the hedging instrument must be designated, based upon the exposure being hedged, as a fair value hedge or a cash flow hedge. See Note 8 for more information on the Company's derivative instruments and hedging programs.

Fair Value Measurements The Company follows the authoritative guidance on fair value measurements and disclosures with respect to assets and liabilities that are measured at fair value on both a recurring and nonrecurring basis. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability, based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and financial liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels defined as follows:

• Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities.

• Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.

• Level 3 - Inputs are unobservable for the asset or liability.

Financial assets that are classified as Level 1 securities include highly liquid government bonds within U.S. government and agency securities and marketable equity securities for which quoted market prices are available. In addition, the Company classifies currency forward contracts as Level 1 since they are valued using quoted market prices in active markets which have identical assets or liabilities.

The valuation for most fixed maturity securities are classified as Level 2. Financial assets that are classified as Level 2 include corporate debt securities, government and agency securities, other asset-backed securities, debt funds, and mortgage-backed securities whose value is determined using inputs that are observable in the market or may be derived principally from, or corroborated by, observable market data such as pricing for similar securities, recently executed transactions, cash flow models with yield curves, and benchmark securities. In addition, interest rate swaps and total return swaps are included in Level 2 as the Company uses inputs other than quoted prices that are observable for the asset. The Level 2 derivative instruments are primarily valued using standard calculations and models that use readily observable market data as their basis.

Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies, or similar techniques, and at least one significant model assumption or input is unobservable. Financial assets that are classified as Level 3 include certain investment securities for which there is limited market activity such that the determination of fair value requires significant judgment or estimation, certain corporate debt securities and auction rate securities. With the exception of auction rate securities, these securities are valued using third-party pricing sources that incorporate transaction details such as contractual terms, maturity, timing, and amount of expected future cash flows, as well as assumptions about liquidity and credit valuation adjustments by market participants. The fair value of auction rate securities is estimated by the Company using a discounted cash flow model, which incorporates significant unobservable inputs. The significant unobservable inputs used in the

fair value measurement of the Company’s auction rate securities are years to principal recovery and the illiquidity premium that is incorporated into the discount rate.

Certain investments for which the fair value is measured using the net asset value per share (or its equivalent) practical expedient are excluded from the fair value hierarchy. Financial assets for which the fair value is measured using the net asset value per share practical expedient include certain debt funds, equity and fixed income commingled trusts, and registered investment companies.

Revenue Recognition The Company sells its products through direct sales representatives and independent distributors. Additionally, a portion of the Company's revenue is generated from consignment inventory maintained at hospitals. The Company recognizes revenue when control is transferred to the customer. For products sold through direct sales representatives and independent distributors, control is transferred upon shipment or upon delivery, based on the contract terms and legal requirements. For consignment inventory, control is transferred when the product is used or implanted. Payment terms vary depending on the country of sale, type of customer, and type of product.

If a contract contains more than one performance obligation, the transaction price is allocated to each performance obligation based on relative standalone selling price. Shipping and handling is treated as a fulfillment activity rather than a promised service, and therefore, is not considered a performance obligation. Taxes assessed by a governmental authority that are both imposed on, and concurrent with, a specific revenue producing transaction and collected by the Company from customers (for example, sales, use, value added, and some excise taxes) are not included in revenue. For contracts that have an original duration of one year or less, the Company uses the practical expedient applicable to such contracts and does not adjust the transaction price for the time value of money.

The amount of revenue recognized reflects sales rebates and returns, which are estimated based on sales terms, historical experience, and trend analysis. In estimating rebates, the Company considers the lag time between the point of sale and the payment of the rebate claim, the stated rebate rates, and other relevant information. The Company records adjustments to rebates and returns reserves as increases or decreases of revenue.

The Company offers warranties on various products. For standard, assurance-type warranties, the Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. The amount of the reserve is equal to the net costs to repair or otherwise satisfy the obligation. The Company includes the warranty obligation in other accrued expenses and other liabilities in the consolidated balance sheets. For extended, service-type warranties, a portion of the transaction price is allocated to the performance obligation. Warranty obligations at April 26, 2019 and April 27, 2018 were not material.

The Company records a deferred revenue liability if a customer pays consideration before the Company transfers a good or service to the customer. Deferred revenue primarily represents remote monitoring services and equipment maintenance, for which consideration is received at the same time as consideration for the device or equipment. Deferred revenue also includes extended, service-type warranties. Revenue related to remote monitoring services, equipment maintenance, and service-type warranties is recognized over the service period as time elapses.

Remaining performance obligations include deferred revenue and amounts the Company expects to receive for goods and services that have not yet been delivered or provided under existing, noncancellable contracts with minimum purchase commitments, primarily related to consumables for previously sold equipment as well as remote monitoring services and equipment maintenance. For contracts that have an original duration of one year or less, the Company has elected the practical expedient applicable to such contracts and does not disclose the transaction price for remaining performance obligations at the end of each reporting period and when the Company expects to recognize this revenue.

Shipping and Handling Shipping and handling costs incurred to physically move product from the Company's premises to the customer's premises are recognized in selling, general, and administrative expense in the consolidated statements of income and were $350 million, $363 million, and $370 million in fiscal years 2019, 2018, and 2017, respectively. Other shipping and handling costs incurred to store, move, and prepare products for shipment are recognized in cost of products sold in the consolidated statements of income.

Research and Development Research and development costs are expensed when incurred. Research and development costs include costs of other research, engineering, and technical activities to develop a new product or service or make significant improvement to an existing product or manufacturing process. Research and development costs also include pre-approval regulatory and clinical trial expenses.

Contingencies The Company records a liability in the consolidated financial statements for loss contingencies 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. Insurance recoveries related to potential claims are recognized up to the amount of the recorded liability when coverage is confirmed and the estimated recoveries are probable of payment. These recoveries are not netted against the related liabilities for financial statement presentation.

Income Taxes The Company has deferred taxes that arise as a result of the different treatment of transactions for U.S. GAAP and income tax accounting, known as temporary differences. The Company records the tax effect of these temporary differences as deferred tax assets and deferred tax liabilities. Deferred tax assets generally represent items that may be used as a tax deduction or credit in a tax return in future years for which the Company has already recognized the tax benefit in the consolidated statements of income. The Company establishes valuation allowances for deferred tax assets when the amount of expected future taxable income is not likely to support the use of the deduction or credit. Deferred tax liabilities generally represent tax expense for which payment has been deferred or expense has already been taken as a deduction on the Company’s tax return but has not yet been recognized as an expense in the consolidated statements of income. 

Other Operating Expense, Net Other operating expense, net primarily includes royalty income and expense, Transition Service Agreement income, intangible asset charges, currency transaction and derivative gains and losses, contributions to the Medtronic Foundation, Puerto Rico excise taxes, changes in the fair value of contingent consideration, and charges associated with business exits.

Other Non-Operating Income, Net Other non-operating income, net includes the non-service component of net periodic pension and post-retirement benefit cost, investment gains and losses, and interest income.

Currency Translation Assets and liabilities of non-U.S. dollar functional currency entities are translated to U.S. dollars at period-end exchange rates, and the currency impacts arising from the translation of the assets and liabilities are recorded as a cumulative translation adjustment, a component of accumulated other comprehensive loss, on the consolidated balance sheets. Elements of the consolidated statements of income are translated at the average monthly currency exchange rates in effect during the period. Currency transaction gains and losses are included in other operating expense, net in the consolidated statements of income.

Stock-Based Compensation The Company measures stock-based compensation expense at the grant date based on the fair value of the award and recognizes the compensation expense over the requisite service period, which is generally the vesting period. The amount of stock-based compensation expense recognized during a period is based on the portion of the awards that are expected to vest. The Company estimates pre-vesting forfeitures at the time of grant and revises the estimates in subsequent periods.

New Accounting Standards

Recently Adopted

In May 2014, the Financial Accounting Standards Board (FASB) issued amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue in an amount that reflects the consideration to which an entity expects to be entitled in exchange for the transfer of goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The Company adopted this guidance using the modified retrospective method in the first quarter of fiscal year 2019, and elected to apply the guidance only to contracts that were not completed as of the date of initial application. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In January 2016, the FASB issued guidance which requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The guidance also includes a simplified impairment assessment of equity investments without readily determinable fair values and presentation and disclosure changes. The Company adopted this guidance in the first quarter of fiscal year 2019 on a prospective basis. As a result of the adoption, the Company reclassified $47 million from accumulated other comprehensive loss to the opening balance of retained earnings as of April 28, 2018.

In March 2017, the FASB issued guidance which changes the financial statement presentation requirements for pension and other post-retirement benefit expense. While service cost will continue to be recognized in the same financial statement line items as other current employee compensation costs, the guidance requires all other non-service components of net benefit costs to be

classified and presented outside of income from operations. The Company adopted this guidance in the first quarter of fiscal year 2019, and the consolidated statements of income were retrospectively adjusted. For fiscal years 2018 and 2017, the Company reclassified $11 million of income and $53 million of expense, respectively, of non-service components of net periodic benefit costs, which were previously presented as a component of operating profit, to other non-operating income, net.

Not Yet Adopted

In February 2016, the FASB issued guidance which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet. The guidance will be adopted using the modified retrospective method by applying the new guidance as of the transition date with a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the period of adoption. The Company will elect the package of practical expedients upon adoption which allows the Company to not reassess whether any expired or existing contracts are or contain leases, the classification of any expired or existing leases or any initial direct costs for existing leases. Further, the Company will make accounting policy elections to not apply the recognition requirements to short-term leases and to account for lease and nonlease components as a single lease component.

This guidance is effective for the Company beginning in the first quarter of fiscal year 2020. As a result of adopting the guidance, the Company expects to record right-of-use assets and lease liabilities for operating leases in an amount of approximately one percent of total assets on the consolidated balance sheet. The Company expects the adoption to have an immaterial impact on the consolidated statements of income and cash flows. The Company will also make additional lease related disclosures in the footnotes to the Company's consolidated financial statements upon adoption.

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Revenue

12 Months Ended

Apr. 26, 2019

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

The Company's revenues are principally derived from device-based medical therapies and services related to cardiac rhythm disorders, cardiovascular disease, renal disease, neurological disorders and diseases, spinal conditions and musculoskeletal trauma, chronic pain, urological and digestive disorders, ear, nose, and throat conditions, and diabetes conditions as well as advanced and general surgical care products, respiratory and monitoring solutions, and neurological surgery technologies. The Company's primary customers include hospitals, clinics, third-party health care providers, distributors, and other institutions, including governmental health care programs and group purchasing organizations.

The table below illustrates net sales by segment and division for fiscal years 2019, 2018, and 2017:

	Net Sales by Fiscal Year
(in millions)	2019		2018		2017
Cardiac Rhythm & Heart Failure	$	5,849	$	5,947	$	5,649
Coronary & Structural Heart	3,730		3,562		3,113
Aortic, Peripheral & Venous	1,926		1,845		1,736
Cardiac and Vascular Group	11,505		11,354		10,498
Surgical Innovations	5,753		5,537		5,145
Respiratory, Gastrointestinal, & Renal	2,725		3,179		4,774
Minimally Invasive Therapies Group	8,478		8,716		9,919
Spine	2,654		2,668		2,641
Brain Therapies	2,604		2,354		2,098
Specialty Therapies	1,641		1,556		1,491
Pain Therapies	1,284		1,165		1,136
Restorative Therapies Group	8,183		7,743		7,366
Diabetes Group	2,391		2,140		1,927
Total	$	30,557	$	29,953	$	29,710

The tables below include net sales by market geography and segment for fiscal years 2019, 2018, and 2017:

	U.S.(1)				Non-U.S. Developed Markets(2)				Emerging Markets(3)
(in millions)	Fiscal Year 2019		Fiscal Year 2018		Fiscal Year 2019		Fiscal Year 2018		Fiscal Year 2019		Fiscal Year 2018
Cardiac and Vascular Group	$	5,750	$	5,681	$	3,767	$	3,790	$	1,988	$	1,883
Minimally Invasive Therapies Group	3,630		3,804		3,250		3,378		1,598		1,534
Restorative Therapies Group	5,478		5,164		1,759		1,720		946		859
Diabetes Group	1,336		1,226		855		739		200		175
Total	$	16,194	$	15,875	$	9,631	$	9,627	$	4,732	$	4,451

	U.S.(1)				Non-U.S. Developed Markets(2)				Emerging Markets(3)
(in millions)	Fiscal Year 2018		Fiscal Year 2017		Fiscal Year 2018		Fiscal Year 2017		Fiscal Year 2018		Fiscal Year 2017
Cardiac and Vascular Group	$	5,681	$	5,454	$	3,790	$	3,393	$	1,883	$	1,651
Minimally Invasive Therapies Group	3,804		5,049		3,378		3,479		1,534		1,391
Restorative Therapies Group	5,164		5,012		1,720		1,588		859		766
Diabetes Group	1,226		1,148		739		625		175		154
Total	$	15,875	$	16,663	$	9,627	$	9,085	$	4,451	$	3,962

(1) U.S. includes the United States and U.S. territories.

(2) Non-U.S. developed markets include Japan, Australia, New Zealand, Korea, Canada, and the countries within Western Europe.

(3) Emerging markets include the countries of the Middle East, Africa, Latin America, Eastern Europe, and the countries of Asia that are not included in the non-U.S. developed markets, as defined above.

At April 26, 2019, $764 million of rebates were classified as other accrued expenses and $432 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheets. At April 27, 2018, $614 million of rebates were classified as other accrued expenses and $376 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheets. The Company includes obligations for returns in other accrued expenses in the consolidated balance sheets and the right-of-return asset in other current assets in the consolidated balance sheets. The right-of-return asset and liability at April 26, 2019 and right-of-return liability at April 27, 2018 were not material. There was no right-of-return asset at April 27, 2018 as the liability was recorded net of the asset under previous guidance. During fiscal year 2019, adjustments to rebate and return reserves recognized in revenue that were included in the rebate and return reserves at the beginning of the period were not material.

Deferred Revenue and Remaining Performance Obligations

Deferred revenue at April 26, 2019 and April 27, 2018 was $315 million and $289 million, respectively. At April 26, 2019 and April 27, 2018, $211 million and $196 million was included in other accrued expenses, respectively, and $104 million and $93 million was included in other liabilities, respectively. During the fiscal year ended April 26, 2019, the Company recognized $199 million of revenue that was included in deferred revenue as of April 27, 2018.

At April 26, 2019, the estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied for executed contracts with an original duration of one year or more was approximately $900 million. The Company expects to recognize revenue on the majority of these remaining performance obligations over the next four years.

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Acquisitions

12 Months Ended

Apr. 26, 2019

Business Combinations [Abstract]

Acquisitions

Acquisitions

The Company had acquisitions during fiscal years 2019 and 2018 that were accounted for as business combinations. The assets and liabilities of businesses acquired were recorded and consolidated on the acquisition date at their respective fair values. Goodwill resulting from business combinations is largely attributable to future yet to be defined technologies, new customer relationships, existing workforce of the acquired businesses, and synergies expected to arise after the Company's acquisition of these businesses. The pro forma impact of acquisitions during fiscal years 2019 and 2018 was not significant, either individually or in the aggregate, to the results of the Company. The results of operations of acquired businesses have been included in the Company’s consolidated statements of income since the date each business was acquired.

Fiscal Year 2019

The acquisition date fair values of the assets acquired and liabilities assumed in fiscal year 2019 were as follows:

(in millions)	Mazor Robotics		EPiX Therapeutics, Inc.		All Other		Total
Cash and cash equivalents	$	109	$	3	$	3	$	115
Investments	52		—		—		52
Accounts receivable	10		—		2		12
Inventory	7		—		27		34
Other current assets	2		1		3		6
Property, plant, and equipment	3		1		29		33
Goodwill	1,197		165		148		1,510
Other intangible assets	399		162		210		771
Tax assets	6		—		7		13
Other assets	1		2		—		3
Total assets acquired	1,786		334		429		2,549
Current liabilities	54		4		45		103
Accrued income taxes	—		—		5		5
Deferred tax liabilities	58		11		—		69
Total liabilities assumed	112		15		50		177
Net assets acquired	$	1,674	$	319	$	379	$	2,372

Mazor Robotics

On December 18, 2018, the Company's Restorative Therapies Group acquired Mazor Robotics (Mazor), a pioneer in the field of robotic guidance systems. The acquisition of Mazor strengthens the Company's position as a global leader in enabling technologies for spine surgery. The Company offers a fully-integrated procedural solution for surgical planning, execution and confirmation by combining the Company's spine implants, navigation, and intra-operative imaging technology with Mazor's robotic-assisted surgery systems. Total consideration for the transaction, net of cash acquired, was $1.6 billion, consisting of $1.3 billion of cash and $246 million of a previously-held equity investment in Mazor. Based upon a preliminary acquisition valuation, the Company acquired $383 million of technology-based intangible assets and $16 million of tradenames with estimated useful lives of 10 years and $1.2 billion of goodwill. The goodwill is primarily attributable to pull-through revenue, future yet to be defined technologies, and an assembled workforce. The goodwill is not deductible for tax purposes.

During fiscal year 2019, the Company recognized $51 million of costs incurred in connection with the acquisition of Mazor, including payouts for unvested stock options and investment banker and other transaction fees, which were recognized in selling, general, and administrative expense in the consolidated statements of income. Revenue and net income (loss) attributable to Mazor since the date of acquisition included in the consolidated statements of income were not significant for fiscal year 2019.

EPiX Therapeutics, Inc.

On March 8, 2019, the Company's Cardiac and Vascular Group acquired EPiX Therapeutics, Inc. (EPiX), a medical device company that designs and manufactures a novel, catheter-based, temperature-controlled cardiac ablation system for the treatment of patients with cardiac arrhythmias, including atrial fibrillation. This acquisition expands the Company's cardiac ablation portfolio to offer physicians a comprehensive suite of tools to treat patients with cardiac arrhythmias. Total consideration for the transaction, net of cash acquired, was $316 million, consisting of $216 million of cash and $100 million of contingent consideration. Contingent consideration is primarily comprised of a product development-based payment triggered upon a U.S. Federal Drug Administration regulatory approval. Based upon a preliminary acquisition valuation, the Company acquired $162 million of IPR&D related to the DiamondTemp ablation system and $165 million of goodwill. The goodwill is primarily attributable to future yet to be defined technologies and is not deductible for tax purposes. Expenses incurred in connection with the acquisition of EPiX were not significant. Revenue and net income (loss) attributable to EPiX since the date of acquisition included in the consolidated statements of income were not significant for fiscal year 2019.

Fiscal Year 2018

The acquisition date fair value of net assets acquired in fiscal year 2018 was $152 million, consisting of $156 million of assets acquired and $4 million of liabilities assumed. Assets acquired were primarily comprised of $52 million of goodwill, $48 million of customer-related intangible assets with estimated useful lives of 7 years, and $47 million of technology-based intangible assets with estimated useful lives ranging from 10 to 12 years.

Additionally, in the first quarter of fiscal year 2018, adjustments were made to finalize the allocation of purchase price for the Company's acquisition of HeartWare International, Inc., which was acquired on August 23, 2016, related to contingent liabilities and other assets, which resulted in an increase to goodwill of $54 million.

Acquired In-Process Research & Development

IPR&D acquired outside of a business combination is expensed immediately. During fiscal year 2019, the Company acquired $38 million of IPR&D in connection with asset acquisitions, which was recognized in other operating expense, net in the consolidated statements of income. The Company did not acquire any IPR&D in connection with asset acquisitions during fiscal years 2018 and 2017.

Contingent Consideration

The fair value of contingent consideration at April 26, 2019 and April 27, 2018 was $222 million and $173 million, respectively. At April 26, 2019, $73 million was recorded in other accrued expenses and $149 million was recorded in other liabilities on the consolidated balance sheets. At April 27, 2018, $108 million was reflected in other accrued expenses and $65 million was reflected in other liabilities on the consolidated balance sheets.

The following table provides a reconciliation of the beginning and ending balances of contingent consideration:

	Fiscal Year
(in millions)	2019			2018
Beginning Balance	$	173		$	246
Purchase price contingent consideration	151			28
Contingent consideration payments	(36		)	(72		)
Change in fair value of contingent consideration	(66		)	(29		)
Ending Balance	$	222		$	173

The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs:

(in millions)	Fair Value at April 26, 2019		Valuation Technique	Unobservable Input	Range
				Discount rate	11.5% - 32.5%
Revenue-based payments	$	90	Discounted cash flow	Probability of payment	65% - 100%
				Projected fiscal year of payment	2020 - 2025
				Discount rate	5.5%
Product development-based payments	$	132	Discounted cash flow	Probability of payment	75% - 100%
				Projected fiscal year of payment	2020 - 2027

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Divestiture

12 Months Ended

Apr. 26, 2019

Discontinued Operations and Disposal Groups [Abstract]

Divestiture

Divestiture

On July 29, 2017, the Company completed the sale of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses within the Minimally Invasive Therapies Group segment to Cardinal Health, Inc. (Cardinal). As a result of the transaction, the Company received proceeds of $6.1 billion, which was recorded in proceeds from sale of businesses in the consolidated statements of cash flows, and recognized a before-tax gain of $697 million, which was recognized within gain on sale of businesses in the consolidated statements of income. Among the product lines included in the divestiture were dental and animal health, chart paper, wound care, incontinence, electrodes, SharpSafety, thermometry, perinatal protection, blood collection, compression, and enteral feeding offerings. The divestiture also included 17 dedicated manufacturing sites.

In fiscal year 2018, the Company recognized expenses incurred in connection with the divestiture of $115 million, primarily comprised of professional services, including banker, legal, tax, and advisory fees, as well as $16 million of accelerated stock compensation expense related to the acceleration of the vesting period for employees that transferred with the divestiture. Expenses incurred in connection with the divestiture were recognized in selling, general, and administrative expense in the consolidated statements of income. There were no divestiture-related expenses during fiscal years 2019 or 2017.

The divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses did not meet the criteria to be classified as discontinued operations, as such, the results of operations of these businesses are included within net income through the date of the divestiture.

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Restructuring Charges

12 Months Ended

Apr. 26, 2019

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

For fiscal year 2019, the Company recognized $407 million in restructuring charges, net of $17 million of accrual adjustments. For fiscal year 2018, the Company recognized $107 million in restructuring charges, net of $34 million of accrual adjustments, including $96 million in restructuring charges related to the Enterprise Excellence restructuring program and $11 million in restructuring charges, net of $34 million of accrual adjustments, related to the Cost Synergies restructuring program. For fiscal year 2017, the Company recognized $300 million in restructuring charges, net of $68 million of accrual adjustments related to the Cost Synergies restructuring program. Accrual adjustments relate to certain employees identified for termination finding other positions within the Company, cancellations of employee terminations, and employee termination benefits being less than initially estimated.

Enterprise Excellence

In the third quarter of fiscal year 2018, the Company announced its Enterprise Excellence restructuring program, which is expected to leverage the Company's global size and scale, as well as enhance the customer and employee experience, with a focus on three objectives: global operations, functional optimization, and commercial optimization. Primary activities of the restructuring program include integrating and enhancing global manufacturing and supply processes, systems and site presence, enhancing and leveraging global operating models across several enabling functions, and optimizing certain commercial processes, systems, and models.

The Company estimates that, in connection with its Enterprise Excellence restructuring program, it will recognize pre-tax exit and disposal costs and other costs associated with the restructuring program across all segments of approximately $1.6 billion to $1.8 billion, the majority of which are expected to be incurred by the end of fiscal year 2022. Approximately half of the estimated charges are related to employee termination benefits. The remaining restructuring charges are costs associated with the restructuring program, such as salaries for employees supporting the program and consulting expenses. These charges are recognized within restructuring charges, net, cost of products sold, and selling, general, and administrative expense in the consolidated statements of income.

During fiscal year 2019, the Company recognized $424 million in charges, including $91 million recognized within cost of products sold and $118 million recognized within selling, general, and administrative expense in the consolidated statements of income. During fiscal year 2018, the Company recognized $96 million in charges, including $28 million within cost of products sold and $33 million recognized within selling, general, and administrative expense in the consolidated statements of income.

The following table summarizes the activity related to the Enterprise Excellence restructuring program for fiscal years 2019 and 2018:

(in millions)	Employee Termination Benefits			Associated Costs(1)			Asset Write-downs(2)			Other Costs			Total
April 28, 2017	$	—		$	—		$	—		$	—		$	—
Charges	35			61			—			—			96
Cash payments	(8		)	(59		)	—			—			(67		)
April 27, 2018	27			2			—			—			29
Charges	192			193			17			22			424
Cash payments	(118		)	(186)			—			(10		)	(314		)
Settled non-cash	—			—			(17		)	—			(17		)
April 26, 2019	$	101		$	9		$	—		$	12		$	122

(1) Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses.

(2) Recognized within selling, general, and administrative expense in the consolidated statements of income.

Cost Synergies

The cost synergies program related to administrative office optimization, manufacturing and supply chain infrastructure, and certain general and administrative savings was achieved as part of the Covidien plc (Covidien) integration and completed in the third quarter of fiscal year 2018. Restructuring charges incurred throughout the life of the initiative affecting all segments were primarily related to employee termination costs and costs related to manufacturing and facility closures.

The following table summarizes the activity related to the Cost Synergies restructuring program for fiscal years 2019, 2018, and 2017:

(in millions)	Employee Termination  Benefits			Asset Write-downs			Other  Costs			Total
April 29, 2016	$	213		$	—		$	37		$	250
Charges	287			27			54			368
Cash payments	(179		)	—			(53		)	(232		)
Settled non-cash	—			(27		)	—			(27		)
Accrual adjustments	(60		)	—			(8		)	(68		)
April 28, 2017	261			—			30			291
Charges	25			—			20			45
Cash payments	(132		)	—			(32		)	(164		)
Accrual adjustments	(38		)	—			4			(34		)
April 27, 2018	116			—			22			138
Cash payments	(44		)	—			(13		)	(57		)
Accrual adjustments	(13		)	—			(4		)	(17		)
April 26, 2019	$	59		$	—		$	5		$	64

For fiscal year 2019, the Company recognized no charges and accrual adjustments of $17 million. For fiscal year 2018, the Company recognized $45 million in charges, partially offset by accrual adjustments of $34 million, including $12 million recognized within

cost of products sold and $4 million recognized within selling, general, and administrative expense in the consolidated statements of income.

For fiscal year 2017, the Company recognized $441 million in charges, which included $73 million of incremental defined pension and post-retirement related expenses for employees that accepted voluntary early retirement packages. These costs are not included in the table summarizing the restructuring above, because they are associated with costs that are accounted for under the pension and post-retirement rules. See Note 16 for further discussion on the incremental defined benefit pension and post-retirement related expenses. The charges recognized during 2017 were partially offset by accrual adjustments of $68 million. For fiscal year 2017, asset write-downs included $17 million of property, plant, and equipment impairments. Fiscal year 2017 assets write-downs also included $10 million of inventory write-offs of discontinued product lines recognized within cost of products sold in the consolidated statements of income.

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Financial Instruments

12 Months Ended

Apr. 26, 2019

Investments [Abstract]

Financial Instruments

Financial Instruments

Debt Securities

The Company holds investments in marketable debt securities that are classified and accounted for as available-for-sale and are remeasured on a recurring basis. Refer to Note 1 for information regarding valuation techniques and inputs used in the fair value measurements.

The following tables summarize the Company's investments in available-for-sale debt securities by significant investment category and the related consolidated balance sheet classification at April 26, 2019 and April 27, 2018:

	April 26, 2019
	Valuation									Balance Sheet Classification
(in millions)	Cost		Unrealized Gains		Unrealized Losses			Fair Value		Investments		Other Assets
Level 1:
U.S. government and agency securities	$	529	$	1	$	(7	)	$	523	$	523	$	—
Level 2:
Corporate debt securities	3,500		14		(21		)	3,493		3,493		—
U.S. government and agency securities	387		1		(7		)	381		381		—
Mortgage-backed securities	537		3		(20		)	520		520		—
Non-U.S. government and agency securities	11		—		—			11		11		—
Other asset-backed securities	529		1		(3		)	527		527		—
Total Level 2	4,964		19		(51		)	4,932		4,932		—
Level 3:
Auction rate securities	47		—		(3		)	44		—		44
Total available-for-sale debt securities	$	5,540	$	20	$	(61	)	$	5,499	$	5,455	$	44

	April 27, 2018
	Valuation									Balance Sheet Classification
(in millions)	Cost		Unrealized Gains		Unrealized Losses			Fair Value		Investments		Other Assets
Level 1:
U.S. government and agency securities	$	732	$	—	$	(26	)	$	706	$	706	$	—
Level 2:
Corporate debt securities	4,179		20		(75		)	4,124		4,124		—
U.S. government and agency securities	848		—		(24		)	824		824		—
Mortgage-backed securities	725		2		(34		)	693		693		—
Non-U.S. government and agency securities	74		—		(1		)	73		73		—
Other asset-backed securities	358		—		(2		)	356		356		—
Total Level 2	6,184		22		(136		)	6,070		6,070		—
Level 3:
Auction rate securities	47		—		(3		)	44		—		44
Total available-for-sale debt securities	$	6,963	$	22	$	(165	)	$	6,820	$	6,776	$	44

The following tables present the gross unrealized losses and fair values of the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category, at April 26, 2019 and April 27, 2018:

	April 26, 2019
	Less than 12 months					More than 12 months
(in millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. government and agency securities	$	130	$	(1	)	$	649	$	(13	)
Corporate debt securities	582		(5		)	1,153		(16		)
Mortgage-backed securities	73		(1		)	250		(19		)
Other asset-backed securities	290		(2		)	85		(1		)
Auction rate securities	—		—			44		(3		)
Total	$	1,075	$	(9	)	$	2,181	$	(52	)

	April 27, 2018
	Less than 12 months					More than 12 months
(in millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. government and agency securities	$	762	$	(33	)	$	374	$	(17	)
Corporate debt securities	2,620		(58		)	272		(17		)
Mortgage-backed securities	442		(15		)	102		(19		)
Non-U.S. government and agency securities	32		—			36		(1		)
Other asset-backed securities	238		(1		)	63		(1		)
Auction rate securities	—		—			44		(3		)
Total	$	4,094	$	(107	)	$	891	$	(58	)

The following table presents the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 at April 26, 2019:

	Valuation Technique	Unobservable Input	Range (Weighted Average)
Auction rate securities	Discounted cash flow	Years to principal recovery	2 yrs. - 12 yrs. (3 yrs.)
		Illiquidity premium	6%

The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s policy is to recognize transfers into and out of levels within the fair value hierarchy at the end of the fiscal quarter in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers between Level 1, Level 2, or Level 3 during fiscal years 2019 or 2018. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement.

The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3):

(in millions)	Total Level 3 Investments			Corporate Debt Securities			Auction Rate Securities
April 28, 2017	$	45		$	1		$	44
Settlements	(1		)	(1		)	—
April 27, 2018	44			—			44
Settlements	—			—			—
April 26, 2019	$	44		$	—		$	44

Activity related to the Company’s debt securities portfolio is as follows:

(in millions)	April 26, 2019			April 27, 2018			April 28, 2017
Proceeds from sales	$	3,718		$	3,309		$	3,646
Gross realized gains	18			27			49
Gross realized losses	(62		)	(21		)	(14		)

Credit losses represent the difference between the present value of cash flows expected to be collected on certain mortgage-backed securities and auction rate securities and the amortized cost of these securities. Based on the Company’s assessment of the credit quality of the underlying collateral and credit support available to each of the remaining securities in which the Company is invested, the Company believes it has recognized all necessary other-than-temporary impairments, as the Company does not have the intent to sell, nor is it more likely than not that the Company will be required to sell, before recovery of the amortized cost.

At April 26, 2019 and April 27, 2018, the credit loss portion of other-than temporary impairments on debt securities was not significant. The total reductions for available-for-sale debt securities sold during fiscal years 2019 and 2018 were not significant.

The April 26, 2019 balance of available-for-sale debt securities by contractual maturity is shown in the following table. Within the table, maturities of mortgage-backed securities have been allocated based upon timing of estimated cash flows assuming no change in the current interest rate environment. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

(in millions)	April 26, 2019
Due in one year or less	$	1,022
Due after one year through five years	2,198
Due after five years through ten years	2,244
Due after ten years	35
Total debt securities	$	5,499

Equity Securities, Equity Method Investments, and Other Investments

The Company commonly holds investments in equity securities with readily determinable fair values, equity investments without readily determinable fair values, investments accounted for under the equity method, and other investments.

Effective April 28, 2018, the Company adopted accounting standards update (ASU) 2016-01, which requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. As a result of the adoption, the Company reclassified $47 million from accumulated other comprehensive loss to the opening balance of retained earnings as of April 28, 2018. The Company uses quoted market prices to determine the fair value of equity securities with readily determinable fair values. For equity investments without readily determinable fair values that do not qualify for the practical expedient to estimate fair value using the net asset value per share or its equivalent, the Company has elected to measure these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. This election is made for each investment separately and is reassessed at each reporting period as to whether the investment continues to qualify for this election. Additionally, at each reporting period, the Company makes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired.

Equity securities with readily determinable fair values are included within Level 1 of the fair value hierarchy, as they are measured using quoted market prices. Equity method investments and investments without readily determinable fair values, as described above, are included within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value. To determine the fair value of these investments, the Company uses all pertinent financial information available related to the investees, including financial statements, market participant valuations from recent and proposed equity offerings, and other third-party data.

The following table summarizes the Company's equity and other investments at April 26, 2019, which are classified as other assets in the consolidated balance sheets:

(in millions)	April 26, 2019
Investments without readily determinable fair values	$	308
Equity method and other investments	64
Total equity and other investments	$	372

Prior to the adoption of ASU 2016-01, marketable equity securities were classified as available-for-sale and measured at fair value with unrealized changes recognized in accumulated other comprehensive income (AOCI), net of deferred taxes. Gains and losses on available-for-sale marketable equity securities were recognized in net income when realized. The Company also accounted for certain investments without quoted market prices under the cost method of accounting.

The following table summarizes the values of the Company's equity and other investments by significant investment category and the related consolidated balance sheet classification at April 27, 2018:

	Valuation									Balance Sheet Classification
(in millions)	Cost		Unrealized Gains		Unrealized Losses			Fair Value		Investments		Other Assets
Level 1:
Marketable equity securities	$	63	$	99	$	—		$	162	$	—	$	162
Level 2:
Debt funds	739		—		(154		)	585		585		—
Investments measured at net asset value(1):
Debt funds	199		—		(2		)	197		197		—
Total available-for-sale equity securities	1,001		99		(156		)	944		782		162
Cost method, equity method, and other investments:
Level 3:
Cost method, equity method, and other investments	353		—		—			N/A		—		353
Total equity and other investments	$	1,354	$	99	$	(156	)	$	944	$	782	$	515

(1) Certain investments that are measured at the net asset value per share (or its equivalent) as a practical expedient are excluded from the fair value hierarchy. The fair value amounts presented herein are intended to permit reconciliation to the consolidated balance sheets.

The table below includes activity related to the Company’s portfolio of equity and other investments. Gains and losses on equity and other investments are recognized in other non-operating income, net in the consolidated statements of income.    

(in millions)	April 26, 2019			April 27, 2018			April 28, 2017
Proceeds from sales	$	964		$	918		$	1,710
Gross realized gains	134			18			75
Gross realized losses	(30		)	(4		)	(42		)
Recognized impairment losses	(45		)	(231		)	(30		)

Net gains recognized during fiscal year 2019 were $104 million, comprised of $94 million net realized gains on equity and other investments sold during the period and $10 million of unrealized gains on equity and other investments still held at April 26, 2019. Gross gains and losses for fiscal years 2018 and 2017 represent gains and losses on instruments sold during the period.

During fiscal year 2018, the Company received bids from potential buyers and investors for some or all of its ownership in a portfolio of selected investments, which indicated that the fair values of certain of the underlying cost and equity method investments in the portfolio may be below the respective carrying values. The Company determined that the decline in the fair values was other-than-temporary given the uncertainty regarding the Company’s intent to hold the investments for a period of time that would be sufficient to recover the carrying values. As a result, the Company recognized impairment charges of $227 million during fiscal year 2018, which were recognized in other non-operating income, net in the consolidated statements of income. The fair values of the investments were determined based on Level 3 inputs. The carrying values of the investments prior to recognizing the impairment charges was $317 million. There were no other significant impairment charges recognized during fiscal year 2018 and impairment charges during fiscal years 2019 and 2017 were not significant.

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Financing Arrangements

12 Months Ended

Apr. 26, 2019

Debt Disclosure [Abstract]

Financing Arrangements

Financing Arrangements

Current debt obligations consisted of the following:

(in millions)	April 26, 2019		April 27, 2018
Bank borrowings	$	332	$	355
Floating rate five-year 2015 senior notes	500		—
Capital lease obligations	6		5
Commercial paper	—		698
1.700 percent two-year 2017 senior notes	—		1,000
Current debt obligations	$	838	$	2,058

Bank Borrowings Outstanding bank borrowings at April 26, 2019 were short-term advances to certain non-U.S. subsidiaries under credit agreements with various banks. Bank borrowings consist primarily of borrowings in Japanese Yen at an interest rate of 0.18%, and the borrowing is a natural hedge of currency and exchange rate risk.

Commercial Paper On January 26, 2015, Medtronic Global Holdings S.C.A. (Medtronic Luxco), an entity organized under the laws of Luxembourg, entered into various agreements pursuant to which Medtronic Luxco may issue unsecured commercial paper notes (the 2015 Commercial Paper Program) on a private placement basis up to a maximum aggregate amount outstanding at any time of $3.5 billion. The Company and Medtronic, Inc. have guaranteed the obligations of Medtronic Luxco under the 2015 Commercial Paper Program.

There was no commercial paper outstanding at April 26, 2019, as compared to $698 million outstanding at April 27, 2018. During fiscal years 2019 and 2018, the weighted average original maturity of the commercial paper outstanding was approximately 27 days and 28 days, respectively, and the weighted average interest rate was 2.12 percent and 1.46 percent, respectively. The issuance of commercial paper reduces the amount of credit available under the Company's existing Credit Facility, defined below.

Line of Credit On December 12, 2018, Medtronic Luxco, as borrower, entered into an amended and restated credit agreement (Credit Facility), by and among Medtronic, Medtronic, Inc., Medtronic Luxco, the lenders from time to time party thereto, and Bank of America, N.A., as administrative agent and issuing bank, which expires in December 2023. The Credit Facility replaces the previous credit agreement dated November 7, 2014 and effective as of January 26, 2015.

The Credit Facility provides for a $3.5 billion five-year unsecured revolving credit facility (Credit Facility). At each anniversary date of the Credit Facility, but not more than twice prior to the maturity date, the Company could also request a one-year extension of the maturity date. The Credit Facility provides the Company with the ability to increase its borrowing capacity by an additional $1.0 billion at any time during the term of the agreement. The Company and Medtronic, Inc. have guaranteed the obligations of the borrowers under the Credit Facility, and Medtronic Luxco will also guarantee the obligations of any designated borrower. The Credit Facility includes a multi-currency borrowing feature for certain specified foreign currencies. At April 26, 2019 and April 27, 2018, no amounts were outstanding under the original or amended credit facilities.

Interest rates on advances on the Credit Facility are determined by a pricing matrix, based on the Company’s long-term debt ratings, assigned by Standard & Poor’s Ratings Services and Moody’s Investors Service. Facility fees are payable on the Credit Facility and are determined in the same manner as the interest rates. The agreements also contain customary covenants, all of which the Company remained in compliance with at April 26, 2019.

Long-term debt consisted of the following:

		April 26, 2019					April 27, 2018
(in millions, except interest rates)	Maturity by Fiscal Year	Amount			Effective Interest Rate		Amount			Effective Interest Rate
Floating rate five-year 2015 senior notes	2020	$	—		—	%	$	500		2.92	%
2.500 percent five-year 2015 senior notes	2020	—			—		2,500			2.63
4.200 percent ten-year 2010 CIFSA senior notes	2021	—			—		600			2.33
0.000 percent two-year 2019 senior notes	2021	1,681			0.22		—			—
Floating rate two-year 2019 senior notes	2021	560			0.05		—			—
4.125 percent ten-year 2011 senior notes	2021	500			4.21		500			4.21
3.150 percent seven-year 2015 senior notes	2022	2,500			3.29		2,500			3.29
3.125 percent ten-year 2012 senior notes	2022	675			3.21		675			3.21
3.200 percent ten-year 2012 CIFSA senior notes	2023	650			2.72		650			2.72
0.375 percent four-year 2019 senior notes	2023	1,681			0.56		—			—
2.750 percent ten-year 2013 senior notes	2023	530			3.25		530			3.25
2.950 percent ten-year 2013 CIFSA senior notes	2024	310			2.71		310			2.71
3.625 percent ten-year 2014 senior notes	2024	850			3.61		850			3.61
3.500 percent ten-year 2015 senior notes	2025	4,000			3.74		4,000			3.74
1.125 percent eight-year 2019 senior notes	2027	1,681			1.25		—			—
3.350 percent ten-year 2017 senior notes	2027	850			3.53		850			3.53
1.625 percent twelve-year 2019 senior notes	2031	1,121			1.75		—			—
4.375 percent twenty-year 2015 senior notes	2035	2,382			4.47		2,382			4.47
6.550 percent thirty-year 2007 CIFSA senior notes	2038	284			4.68		374			4.68
2.250 percent twenty-year 2019 senior notes	2039	1,121			2.34		—			—
6.500 percent thirty-year 2009 senior notes	2039	183			6.56		300			6.56
5.550 percent thirty-year 2010 senior notes	2040	306			5.58		500			5.58
4.500 percent thirty-year 2012 senior notes	2042	129			4.54		400			4.54
4.000 percent thirty-year 2013 senior notes	2043	325			4.10		325			4.10
4.625 percent thirty-year 2014 senior notes	2044	177			4.67		650			4.67
4.625 percent thirty-year 2015 senior notes	2045	1,963			4.69		4,150			4.69
Bank borrowings	2021-2022	83			1.94		125			3.99
Debt premium, net	2021-2045	29			—		120			—
Capital lease obligations	2021-2028	10			6.39		21			4.46
Interest rate swaps	2021-2022	9			—		(6		)	—
Deferred financing costs	2021-2045	(104		)	—		(107		)	—
Long-term debt		$	24,486				$	23,699

Senior Notes The Company has outstanding unsecured senior obligations, described as senior notes in the tables above (collectively, the Senior Notes). The Senior Notes rank equally with all other unsecured and unsubordinated indebtedness of the Company. The indentures under which the Senior Notes were issued contain customary covenants, all of which the Company remained in compliance with at April 26, 2019. The Company used the net proceeds from the sale of the Senior Notes primarily for general corporate purposes, which includes the repayment of other indebtedness of the Company.

In March 2019, Medtronic Luxco issued six tranches of Euro-denominated Senior Notes with an aggregate principal of €7.0 billion, with maturities ranging from fiscal year 2021 to fiscal year 2039, resulting in cash proceeds of approximately $7.8 billion, net of

discounts and issuance costs (collectively, the 2019 Senior Notes). The issuance included €500 million of floating rate Senior Notes due in fiscal year 2021, €1.5 billion of 0.000 percent Senior Notes due in fiscal year 2021, €1.5 billion of 0.375 percent Senior Notes due in fiscal year 2023, €1.5 billion of 1.125 percent Senior Notes due in fiscal year 2027, €1.0 billion of 1.625 percent Senior Notes due in fiscal year 2031, and €1.0 billion of 2.250 percent Senior Notes due in fiscal year 2039. The Company used a portion of the net proceeds of the offering to fund the previously announced cash tender offers and early redemption, described below. The Euro-denominated debt is designated as a net investment hedge of certain of the Company's European operations. Refer to Note 8 for additional information regarding the net investment hedge.

The Company completed the cash tender offer and early redemption of $6.4 billion of Medtronic Inc. and CIFSA senior notes for $6.9 billion of total consideration in March 2019. The Company recognized a loss on debt extinguishment of $485 million, which primarily included cash premiums and accelerated amortization of deferred financing costs and debt discounts and premiums. The loss on debt extinguishment was recognized in interest expense in the consolidated statements of income. Also in March 2019, the Company repaid its 1.700 percent two-year 2017 senior notes, including interest, for $1.0 billion.

In April 2018, the Company completed an early redemption of approximately $1.2 billion of Senior Notes for $1.2 billion of total consideration. The Company recognized a loss on the debt redemption of $38 million, which included cash premiums and accelerated amortization of deferred financing costs. The loss was recognized in interest expense in the consolidated statements of income.

At April 26, 2019 and April 27, 2018, the Company had interest rate swap agreements designated as fair value hedges of certain underlying fixed-rate obligations, including the Company’s $500 million 4.125 percent 2011 Senior Notes and $675 million 3.125 percent 2012 Senior Notes. Refer to Note 8 for additional information regarding the interest rate swap agreements.

Contractual maturities of debt for the next five fiscal years and thereafter, excluding deferred financing costs, debt premium, net, and the fair value of outstanding interest rate swap agreements are as follows:

(in millions)
2020	$	838
2021	2,747
2022	3,258
2023	2,862
2024	1,161
Thereafter	14,524
Total debt	25,390
Less: Current debt obligations	838
Long-term debt	$	24,552

Financial Instruments Not Measured at Fair Value

At April 26, 2019, the estimated fair value of the Company’s Senior Notes was $26.2 billion compared to a principal value of $25.0 billion. At April 27, 2018 the estimated fair value was $25.1 billion compared to a principal value of $24.5 billion. The fair value was estimated using quoted market prices for the publicly registered Senior Notes, which are classified as Level 2 within the fair value hierarchy. The fair values and principal values consider the terms of the related debt and exclude the impacts of debt discounts and hedging activity.

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Derivatives and Currency Exchange Risk Management

12 Months Ended

Apr. 26, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Currency Exchange Risk Management

Derivatives and Currency Exchange Risk Management

The Company uses operational and economic hedges, as well as currency exchange rate derivative contracts and interest rate derivative instruments, to manage the impact of currency exchange and interest rate changes on earnings and cash flows. In addition, the Company uses cross-currency interest rate swaps to manage currency risk related to certain debt. In order to minimize earnings and cash flow volatility resulting from currency exchange rate changes, the Company enters into derivative instruments, principally forward currency exchange rate contracts. These contracts are designed to hedge anticipated foreign currency transactions and changes in the value of specific assets and liabilities. At inception of the contract, the derivative is designated as either a freestanding derivative or a cash flow hedge. The primary currencies of the derivative instruments are the Euro, Japanese Yen, and British Pound. The Company does not enter into currency exchange rate derivative contracts for speculative purposes. The gross notional

amount of all currency exchange rate derivative instruments outstanding was $11.1 billion and $11.5 billion at April 26, 2019 and April 27, 2018, respectively.

The Company also uses derivative and non-derivative instruments to manage the impact of currency exchange rate changes on net investments in foreign currency-denominated operations. The information that follows explains the various types of derivatives and financial instruments used by the Company, reasons the Company uses such instruments, and the impact such instruments have on the Company’s consolidated balance sheets and statements of income.

Freestanding Derivative Contracts

Freestanding derivative contracts are primarily used to offset the Company’s exposure to the change in value of specific foreign-currency-denominated assets and liabilities and to offset variability of cash flows associated with forecasted transactions denominated in foreign currencies. The gross notional amount of the Company's currency exchange rate contracts outstanding at April 26, 2019 and April 27, 2018 was $4.3 billion and $5.2 billion, respectively. The Company's freestanding currency exchange rate contracts are not designated as hedges, and therefore, changes in the value of these contracts are recognized in earnings, thereby offsetting the current earnings effect of the related change in value of foreign-currency-denominated assets, liabilities, and cash flows.

The Company also entered into total return swaps in fiscal year 2018, which are used to hedge the liability of a non-qualified, deferred compensation plan. The gross notional amount of the Company's total return swaps outstanding at April 26, 2019 and April 27, 2018 was $191 million and $210 million, respectively. The Company's total return swaps are not designated as hedges, and therefore, changes in the value of these instruments are recognized in earnings. The cash flows related to the Company's freestanding derivative contracts are reported as operating activities in the consolidated statements of cash flows.

The amounts and classification of the gains (losses) in the consolidated statements of income related to derivative instruments, not designated as hedging instruments, for fiscal years 2019, 2018, and 2017 are as follows:

		Fiscal Year
(in millions)	Classification	2019		2018			2017
Currency exchange rate contracts	Other operating expense, net	$	218	$	(253	)	$	54
Total return swaps	Other operating expense, net	18		27			—
Total		$	236	$	(226	)	$	54

Cash Flow Hedges

Currency Exchange Rate Risk

Forward contracts designated as cash flow hedges are designed to hedge the variability of cash flows associated with forecasted transactions denominated in a foreign currency that will take place in the future. The gross notional amount of these contracts, designated as cash flow hedges, outstanding at April 26, 2019 and April 27, 2018 was $6.8 billion and $6.3 billion, respectively, and will mature within the subsequent two-year period. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive loss. The effective portion of the gain or loss on the derivative instrument is reclassified into earnings and is included in other operating expense, net in the consolidated statements of income in the same period or periods during which the hedged transaction affects earnings. The cash flows related to all of the Company's derivative instruments designated as cash flow hedges are reported as operating activities in the consolidated statements of cash flows.

No gains or losses relating to ineffectiveness of cash flow hedges were recognized in earnings during fiscal years 2019, 2018, or 2017. No components of the hedge contracts were excluded in the measurement of hedge ineffectiveness, and no hedges were derecognized or discontinued during fiscal years 2019, 2018, or 2017.

The amount of gross gains (losses) recognized in the consolidated statements of income related to derivative instruments designated as cash flow hedges for fiscal years 2019, 2018, and 2017 were as follows:

		Fiscal Year
(in millions)	Classification	2019		2018			2017
Currency exchange rate contracts	Other operating expense, net	$	108	$	(69	)	$	173

The amount of the gains (losses) recognized in AOCI related to the effective portion of currency exchange rate contract derivative instruments designated as cash flow hedges for fiscal years 2019, 2018, and 2017 were as follows:

	Fiscal Year
(in millions)	2019		2018			2017
Currency exchange rate contracts	$	615	$	(404	)	$	342

Forecasted Debt Issuance Interest Rate Risk

Forward starting interest rate derivative instruments designated as cash flow hedges are designed to manage the exposure to interest rate volatility with regard to future issuances of fixed-rate debt. The effective portion of the gains or losses on forward starting interest rate derivative instruments that are designated and qualify as cash flow hedges are reported as a component of accumulated other comprehensive loss. Beginning in the period in which the planned debt issuance occurs and the related derivative instruments are terminated, the effective portion of the gains or losses are then reclassified into interest expense over the term of the related debt. Any portion of the gains or losses that are determined to be ineffective is immediately recognized in interest expense. For fiscal years 2019 and 2018, the reclassifications of the effective portion of net gains (losses) on forward starting interest rate derivative instruments from accumulated other comprehensive loss to interest expense were not significant.

During fiscal year 2017, in connection with the issuance of the 2017 Senior Notes, the Company terminated $300 million of fixed pay, forward starting interest rate swaps with a weighted average fixed rate of 3.10 percent. During fiscal year 2017, there were $21 million of unrealized gains recorded in accumulated other comprehensive loss.

No gains or losses related to the ineffectiveness of forward starting interest rate derivative instruments were recognized in interest expense during fiscal year 2017. Additionally, during fiscal year 2017, no components of the forward starting interest rate derivative instruments were excluded in the measurement of hedge ineffectiveness and no hedges were derecognized or discontinued. The reclassification of the effective portion of the net losses from accumulated other comprehensive loss to interest expense was not significant.

At April 26, 2019 and April 27, 2018, the Company had $194 million and $(207) million, respectively, in after-tax net unrealized gains (losses) associated with cash flow hedging instruments recorded in accumulated other comprehensive loss. The Company expects that $175 million of after-tax net unrealized gains at April 26, 2019 will be recognized in the consolidated statements of income over the next 12 months.

Net Investment Hedges

The Company has designated Euro-denominated debt as a net investment hedge of certain of its European operations to manage the exposure to currency and exchange rate movements for foreign currency-denominated net investments in foreign operations. At April 26, 2019, the Company had $7.8 billion of outstanding Euro-denominated debt designated as a hedge of its net investment in certain of its European operations. These non-derivative instruments will mature beginning fiscal year 2021 through fiscal year 2039.

Additionally, during the fourth quarter of fiscal year 2019, the Company entered into and settled forward currency exchange rate contracts to manage the exposure to exchange rate movements in anticipation of the issuance of the 2019 Senior Notes. Certain of these forward currency exchange rate contracts were designated as a net investment hedge of certain of the Company's European operations. These contracts were terminated in conjunction with the issuance of the 2019 Senior Notes. Historically, the Company utilized forward currency exchange rate contracts designated as net investment hedges, all of which were terminated effective in fiscal year 2009 or prior.

For instruments that are designated and qualify as net investment hedges, the effective portion of the gains or losses is reported as a component of accumulated other comprehensive loss. The effective portion of the gains or losses is reclassified into earnings in the same period as a liquidation event or upon deconsolidation of the foreign subsidiary. Amounts excluded from the assessment

of effectiveness are recognized in other operating expense, net. The cash flows related to the Company's derivative instruments designated as net investment hedges are reported as investing activities in the consolidated statements of cash flows.

At April 26, 2019 and April 27, 2018, the Company had $169 million and $257 million, respectively, in after-tax unrealized losses associated with net investment hedges recorded in accumulated other comprehensive loss. The Company does not expect any of the after-tax unrealized losses at April 26, 2019 to be recognized in the consolidated statements of income over the next 12 months.

No significant hedge ineffectiveness was recognized as a result of these net investment hedges during fiscal years 2019, 2018, or 2017. In addition, the Company did not recognize any gains or losses during fiscal years 2019, 2018, or 2017 on instruments that no longer qualify as net investment hedges.

The amount and classifications of the gains recognized in the consolidated statements of income for the portion of the net investment hedges excluded from the measurement of hedge ineffectiveness were as follows:

		Fiscal Year
(in millions)	Classification	2019		2018		2017
Net investment hedges	Other operating expense, net	$	12	$	—	$	—

The amount of the gains recognized in AOCI related to the effective portion of instruments designated as net investment hedges for fiscal year 2019, 2018, or 2017 were as follows:

	Fiscal Year
(in millions)	2019		2018		2017
Net investment hedges	$	88	$	—	$	—

Fair Value Hedges

Interest rate derivative instruments designated as fair value hedges are designed to manage the exposure to interest rate movements and to reduce borrowing costs by converting fixed-rate debt into floating-rate debt. Under these agreements, the Company agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount.

Changes in the fair value of the derivative instrument are recognized in interest expense and are offset by changes in the fair value of the underlying debt instrument. The gains (losses) from terminated interest rate swap agreements are recognized in long-term debt, increasing (decreasing) the outstanding balances of the debt, and amortized as a reduction of (addition to) interest expense over the remaining life of the related debt. The cash flows related to the Company's interest rate derivative instruments designated as fair value hedges are reported as operating activities in the consolidated statements of cash flows.

At both April 26, 2019 and April 27, 2018, the Company had interest rate swaps with gross notional amounts of $1.2 billion, designated as fair value hedges of underlying fixed-rate senior note obligations, including the Company’s $500 million 4.125 percent 2011 Senior Notes due fiscal year 2021 and the $675 million 3.125 percent 2012 Senior Notes due fiscal year 2022.

At April 26, 2019, the market value of outstanding interest rate swap agreements was an unrealized gain of $9 million, as compared to an unrealized loss of $6 million at April 27, 2018. The amounts were recorded in other liabilities and other assets with the offsets recorded in long-term debt on the consolidated balance sheets.

No significant hedge ineffectiveness was recognized as a result of these fair value hedges for fiscal years 2019, 2018, or 2017. In addition, the Company did not recognize any gains or losses during fiscal years 2019, 2018, or 2017 on firm commitments that no longer qualify as fair value hedges.

Balance Sheet Presentation

The following tables summarize the balance sheet classification and fair value of derivative instruments included in the consolidated balance sheets at April 26, 2019 and April 27, 2018. The fair value amounts are presented on a gross basis, and are segregated between derivatives that are designated and qualify as hedging instruments and those that are not designated and do not qualify as hedging instruments, and are further segregated by type of contract within those two categories.

	April 26, 2019
	Derivative Assets			Derivative Liabilities
(in millions)	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Derivatives designated as hedging instruments
Currency exchange rate contracts	Other current assets	$	234	Other accrued expenses	$	1
Interest rate contracts	Other assets	9		Other liabilities	—
Currency exchange rate contracts	Other assets	78		Other liabilities	1
Total derivatives designated as hedging instruments		321			2
Derivatives not designated as hedging instruments
Currency exchange rate contracts	Other current assets	23		Other accrued expenses	17
Total return swaps	Other current assets	15		Other accrued expenses	—
Cross-currency interest rate contracts	Other current assets	6		Other accrued expenses	—
Total derivatives not designated as hedging instruments		44			17
Total derivatives		$	365		$	19
	April 27, 2018
	Derivative Assets			Derivative Liabilities
(in millions)	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Derivatives designated as hedging instruments
Currency exchange rate contracts	Other current assets	$	37	Other accrued expenses	$	162
Interest rate contracts	Other assets	8		Other liabilities	14
Currency exchange rate contracts	Other assets	11		Other liabilities	51
Total derivatives designated as hedging instruments		56			227
Derivatives not designated as hedging instruments
Currency exchange rate contracts	Other current assets	31		Other accrued expenses	25
Total return swaps	Other current assets	4		Other accrued expenses	—
Stock warrants	Other assets	21		Other liabilities	—
Cross-currency interest rate contracts	Other assets	6		Other liabilities	6
Total derivatives not designated as hedging instruments		62			31
Total derivatives		$	118		$	258

The following table provides information by level for the derivative assets and liabilities that are measured at fair value on a recurring basis:

	April 26, 2019				April 27, 2018
(in millions)	Level 1		Level 2		Level 1		Level 2
Derivative assets	$	335	$	30	$	79	$	39
Derivative liabilities	19		—		238		20

The Company has elected to present the fair value of derivative assets and liabilities within the consolidated balance sheets on a gross basis, even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. The cash flows related to collateral posted and received are reported gross as investing and financing activities, respectively, in the consolidated statements of cash flows. The following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation.

	April 26, 2019
				Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)			Financial Instruments			Cash Collateral (Received) Posted			Securities Collateral (Received) Posted		Net Amount
Derivative assets:
Currency exchange rate contracts	$	335		$	(9	)	$	(43	)	$	—	$	283
Interest rate contracts	9			—			(1		)	—		8
Total return swaps	15			—			—			—		15
Cross-currency interest rate contracts	6			—			—			—		6
	365			(9		)	(44		)	—		312
Derivative liabilities:
Currency exchange rate contracts	(19		)	9			—			—		(10		)
	(19		)	9			—			—		(10		)
Total	$	346		$	—		$	(44	)	$	—	$	302

	April 27, 2018
				Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)			Financial Instruments			Cash Collateral (Received) Posted		Securities Collateral (Received) Posted		Net Amount
Derivative assets:
Currency exchange rate contracts	$	79		$	(61	)	$	—	$	—	$	18
Interest rate contracts	8			(6		)	—		—		2
Total return swaps	4			—			—		—		4
Stock warrants	21			—			—		—		21
Cross-currency interest rate contracts	6			(4		)	—		—		2
	118			(71		)	—		—		47
Derivative liabilities:
Currency exchange rate contracts	(238		)	61			—		74		(103		)
Interest rate contracts	(14		)	6			—		2		(6		)
Cross-currency interest rate contracts	(6		)	4			—		—		(2		)
	(258		)	71			—		76		(111		)
Total	$	(140	)	$	—		$	—	$	76	$	(64	)

Concentrations of Credit Risk

Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of interest-bearing investments, forward exchange derivative contracts, and trade accounts receivable. Global concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of customers and their dispersion across many geographic areas. The Company monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business.

The Company maintains cash and cash equivalents, investments, and certain other financial instruments (including currency exchange rate and interest rate derivative contracts) with various major financial institutions. The Company performs periodic evaluations of the relative credit standings of these financial institutions and limits the amount of credit exposure with any one institution. In addition, the Company has collateral credit agreements with its primary derivatives counterparties. Under these agreements, either party is required to post eligible collateral when the market value of transactions covered by the agreement exceeds specific thresholds, thus limiting credit exposure for both parties. At April 26, 2019, the Company received net cash collateral of $44 million from its counterparties. At April 27, 2018, the Company posted net securities collateral of $76 million to its counterparties. The cash collateral received was recorded in cash and cash equivalents, with the offset recorded as an increase in other accrued expenses on the consolidated balance sheets. The securities collateral posted remained in investments on the consolidated balance sheets.

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Inventories

12 Months Ended

Apr. 26, 2019

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventory balances, net of reserves, were as follows:

(in millions)	April 26, 2019		April 27, 2018
Finished goods	$	2,476	$	2,407
Work-in-process	572		496
Raw materials	705		676
Total	$	3,753	$	3,579

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Goodwill and Other Intangible Assets

12 Months Ended

Apr. 26, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

The following table presents the changes in the carrying amount of goodwill by segment:

(in millions)	Cardiac and Vascular Group			Minimally Invasive Therapies Group			Restorative Therapies Group			Diabetes Group			Total
April 28, 2017	$	6,651		$	20,411		$	9,600		$	1,853		$	38,515
Goodwill as a result of acquisitions	6			10			9			27			52
Purchase accounting adjustments	54			—			—			—			54
Currency translation and other	80			734			108			—			922
April 27, 2018	6,791			21,155			9,717			1,880			39,543
Goodwill as a result of acquisitions	165			83			1,238			24			1,510
Currency translation and other	(102		)	(857		)	(134		)	(1		)	(1,094		)
April 26, 2019	$	6,854		$	20,381		$	10,821		$	1,903		$	39,959

The Company did not recognize any goodwill impairments during fiscal years 2019, 2018, or 2017.

Intangible Assets

The following table presents the gross carrying amount and accumulated amortization of intangible assets:

	April 26, 2019					April 27, 2018
(in millions)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Definite-lived:
Customer-related	$	16,944	$	(4,095	)	$	16,949	$	(3,139	)
Purchased technology and patents	11,405		(4,570		)	11,569		(4,441		)
Trademarks and tradenames	570		(324		)	822		(569		)
Other	85		(59		)	94		(52		)
Total	$	29,004	$	(9,048	)	$	29,434	$	(8,201	)
Indefinite-lived:
IPR&D	$	604	$	—		$	490	$	—

During fiscal year 2019, the Company recognized $87 million of definite-lived intangible asset charges, including $61 million and $26 million recognized in connection with business exits in the Cardiac and Vascular Group and Restorative Therapies Group segments, respectively. Definite-lived intangible asset charges are recognized in other operating expense, net in the consolidated statements of income. The Company did not recognize any definite-lived intangible asset impairments during fiscal years 2018 or 2017.

During fiscal year 2019, the Company recognized $30 million of indefinite-lived intangible asset charges, including $11 million in connection with a business exit in the Restorative Therapies Group segment, and $10 million and $9 million in connection with the discontinuation of certain IPR&D projects within the Minimally Invasive Therapies Group and Cardiac and Vascular Group segments, respectively. During fiscal year 2018, the Company recognized impairment losses on indefinite-lived intangibles of $68 million as a result of the discontinuation of certain IPR&D projects within the Restorative Therapies Group segment. Indefinite-lived intangible asset charges are recognized in other operating expense, net in the consolidated statements of income. The Company did not recognize any significant indefinite-lived intangible asset charges during fiscal year 2017. Due to the nature of IPR&D projects, the Company may experience future delays or failures to obtain regulatory approvals to conduct clinical trials, failures of such clinical trials, delays or failures to obtain required market clearances or other failures to achieve a commercially viable product, or the discontinuation of certain projects, and as a result, may recognize impairment losses in the future.

Amortization

Intangible asset amortization expense was $1.8 billion for fiscal years 2019 and 2018 and $2.0 billion for fiscal year 2017. Estimated aggregate amortization expense by fiscal year based on the current carrying value and remaining estimated useful lives of definite-lived intangible assets at April 26, 2019, excluding any possible future amortization associated with acquired IPR&D which has not met technological feasibility, is as follows:

(in millions)	Amortization Expense
2020	$	1,741
2021	1,724
2022	1,684
2023	1,615
2024	1,574

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Property, Plant, and Equipment

12 Months Ended

Apr. 26, 2019

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment

Property, Plant, and Equipment

Property, plant, and equipment balances and corresponding estimated useful lives were as follows:

(in millions)	April 26, 2019			April 27, 2018			Estimated Useful Lives (in years)
Equipment	$	5,519		$	5,171		Generally 2-7, up to 15
Computer software	1,842			1,578			Up to 5
Land and land improvements	181			187			Up to 20
Buildings and leasehold improvements	2,267			2,265			Up to 40
Construction in progress	1,111			1,058			—
Property, plant, and equipment	10,920			10,259
Less: Accumulated depreciation	(6,245		)	(5,655		)
Property, plant, and equipment, net	$	4,675		$	4,604

Depreciation expense of $895 million, $821 million, and $937 million was recognized in fiscal years 2019, 2018, and 2017, respectively.

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Shareholders' Equity

12 Months Ended

Apr. 26, 2019

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ Equity

Share Capital Medtronic plc is authorized to issue 2.6 billion Ordinary Shares, $0.0001 par value; 40 thousand Euro Deferred Shares, €1.00 par value; 127.5 million Preferred Shares, $0.20 par value; and 500 thousand A Preferred Shares, $1.00 par value.

Euro Deferred Shares The authorized share capital of the Company includes 40 thousand Euro Deferred Shares, with a par value of €1.00 per share. At April 26, 2019, no Euro Deferred Shares were issued or outstanding.

Preferred Shares The authorized share capital of the Company includes 127.5 million of Preferred Shares, with a par value of $0.20 per share. At April 26, 2019, no Preferred Shares were issued or outstanding.

A Preferred Shares The authorized share capital of the Company includes 500 thousand A Preferred Shares, with a par value of $1.00 per share. At April 26, 2019, 1,872 A Preferred Shares were outstanding. The holders of A Preferred Shares are entitled to payment of dividends prior to any other class of shares in the Company equal to twice the dividend to be paid per Company ordinary share. On a return of assets, whether on liquidation or otherwise, the A Preferred Shares are entitled to repayment of the capital paid up thereon in priority to any repayment of capital to the holders of any other shares and the holders of the A Preferred Shares shall not be entitled to any further participation in the assets or profits of the Company. The holders of the A Preferred Shares are not entitled to receive notice of, nor to attend, speak, or vote at any general meeting of the Company.

Dividends The timing, declaration, and payment of future dividends to holders of the Company's ordinary and A Preferred shares falls within the discretion of the Company's Board of Directors and depends upon many factors, including the statutory requirements of Irish law, the Company's earnings and financial condition, the capital requirements of the Company's businesses, industry practice and any other factors the Board of Directors deems relevant. 

Ordinary Share Repurchase Program Shares are repurchased from time to time to support the Company’s stock-based compensation programs and to return capital to shareholders. During fiscal years 2019 and 2018, the Company repurchased approximately 31 million and 25 million shares, respectively, at an average price of $91.43 and $83.71, respectively.

In June 2015, the Company's Board of Directors authorized, subject to the ongoing existence of sufficient distributable reserves, the repurchase of 80 million of the Company's ordinary shares. As described below, this authorization was replaced in June 2017. During fiscal year 2018, prior to the June 2017 repurchase program which became effective on June 26, 2017, the Company purchased approximately 13 million shares authorized under the June 2015 repurchase program.

In June 2017, the Company’s Board of Directors replaced the June 2015 authorization to repurchase up to an aggregate number of ordinary shares with an authorization to expend up to an aggregate amount of $5.0 billion beginning June 26, 2017 to repurchase the Company’s ordinary shares. In March 2019, the Company's Board of Directors authorized an incremental $6.0 billion for repurchase of the Company's ordinary shares. There is no specific time-period associated with these repurchase authorizations. At April 26, 2019, the Company had used approximately $3.8 billion of the $11.0 billion authorized under the repurchase program, leaving approximately $7.2 billion available for future repurchases. The Company accounts for repurchases of ordinary shares using the par value method and shares repurchased are canceled.

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Stock Purchase and Award Plans

12 Months Ended

Apr. 26, 2019

Share-based Payment Arrangement [Abstract]

Stock Purchase and Award Plans

Stock Purchase and Award Plans

The Medtronic, Inc. 2013 Stock Award and Incentive Plan was originally approved by the Company's shareholders in August 2013. In January 2015, the Company's Board of Directors approved an amendment to and assumption of the Medtronic, Inc. 2013 Stock Award and Incentive Plan, which created the Medtronic plc 2013 Stock Award and Incentive Plan (2013 Plan). In fiscal year 2019, the Company granted stock awards under the 2013 Plan. The 2013 Plan provides for the grant of non-qualified and incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, and other stock and cash-based awards. At April 26, 2019, there were approximately 51 million shares available for future grants under the 2013 Plan.

Share Options Options are granted at the exercise price, which is equal to the closing price of the Company’s ordinary shares on the grant date. The majority of the Company’s options are non-qualified options with a 10-year life and a 4-year ratable vesting term. The Company also grants shares of performance-based share options that typically cliff vest after three years only if the Company has also achieved certain performance objectives. Performance awards are expensed over the performance period based on the probability of achieving the performance objectives.

Restricted Stock Restricted stock awards and restricted stock units (collectively referred to as restricted stock) are granted to officers and key employees. At April 26, 2019, the Company does not have any outstanding restricted stock awards. Beginning in fiscal year 2018, restricted stock units have a 4-year ratable vesting term. Restricted stock units issued prior to fiscal year 2018 cliff vest after four years. The expense recognized for restricted stock units is equal to the grant date fair value, which is equal to the closing stock price on the date of grant. Restricted stock units are expensed over the vesting period and are subject to forfeiture if employment terminates prior to the lapse of the restrictions. The Company also grants shares of performance-based restricted stock units that typically cliff vest after three years only if the Company has also achieved certain performance objectives. Performance awards are expensed over the performance period based on the probability of achieving the performance objectives.

Restricted stock units are not considered issued or outstanding ordinary shares of the Company. Dividend equivalent units are accumulated on restricted stock units during the vesting period. At April 26, 2019, all restricted stock outstanding were restricted stock units.

Employees Stock Purchase Plan The Medtronic plc Amended and Restated 2014 Employees Stock Purchase Plan (ESPP) allows participating employees to purchase the Company's ordinary shares at a discount through payroll deductions. The expense recognized for shares purchased under the Company’s ESPP is equal to the 15 percent discount the employee receives at the end of the calendar quarter purchase period.

Employees may contribute between 2 percent and 10 percent of their wages or the statutory limit under the U.S. Internal Revenue Code toward the purchase of newly-issued ordinary shares of the Company at 85 percent of its market value at the end of the calendar quarter purchase period. Employees purchased 2 million shares at an average price of $77.74 per share in fiscal year 2019. At April 26, 2019, plan participants had approximately $12 million withheld to purchase the Company's ordinary shares at

85 percent of its market value on June 28, 2019, the last trading day before the end of the calendar quarter purchase period. At April 26, 2019, approximately 13 million ordinary shares were available for future purchase under the ESPP.

Stock Option Valuation Assumptions The Company uses the Black-Scholes option pricing model (Black-Scholes model) to determine the fair value of stock options at the grant date. The fair value of stock options under the Black-Scholes model requires management to make assumptions regarding projected employee stock option exercise behaviors, risk-free interest rates, volatility of the Company’s stock price, and expected dividends.

The following table provides the weighted average fair value of options granted to employees and the related assumptions used in the Black-Scholes model:

	Fiscal Year
	2019			2018			2017
Weighted average fair value of options granted	$	14.77		$	13.71		$	14.70
Assumptions used:
Expected life (years)(1)	6.10			6.16			6.18
Risk-free interest rate(2)	2.90		%	2.00		%	1.26		%
Volatility(3)	17.77		%	19.51		%	21.07		%
Dividend yield(4)	2.25		%	2.19		%	1.97		%

(1) The Company analyzes historical employee stock option exercise and termination data to estimate the expected life assumption. The Company calculates the expected life assumption using the midpoint scenario, which combines historical exercise data with hypothetical exercise data, as the Company believes this data currently represents the best estimate of the expected life of a new employee option.

(2) The rate is based on the grant date yield of a zero-coupon U.S. Treasury bond whose maturity period equals the expected term of the option.

(3) Expected volatility is based on a blend of historical volatility and an implied volatility of the Company’s ordinary shares. Implied volatility is based on market traded options of the Company’s ordinary shares.

(4) The dividend yield rate is calculated by dividing the Company’s annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date.

Stock-Based Compensation Expense The following table presents the components and classification of stock-based compensation expense recognized for stock options, restricted stock, and ESPP in fiscal years 2019, 2018, and 2017:

	Fiscal Year
(in millions)	2019			2018			2017
Stock options	$	72		$	132		$	157
Restricted stock	189			185			169
Employee stock purchase plan	29			27			22
Total stock-based compensation expense	$	290		$	344		$	348
Cost of products sold	$	30		$	44		$	49
Research and development expense	36			38			41
Selling, general, and administrative expense	224			262			256
Restructuring charges, net	—			—			2
Total stock-based compensation expense	290			344			348
Income tax benefits	(54		)	(82		)	(98		)
Total stock-based compensation expense, net of tax	$	236		$	262		$	250

Stock Options The following table summarizes all stock option activity, including activity from options assumed or issued as a result of acquisitions, during fiscal year 2019:

	Options (in thousands)		Wtd. Avg. Exercise Price		Wtd. Avg. Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at April 27, 2018	41,039		$	66.56
Granted	5,407		89.05
Exercised	(13,767	)	62.76
Expired/Forfeited	(1,002	)	83.17
Outstanding at April 26, 2019	31,677		71.52		5.91	$	512
Vested and expected to vest at April 26, 2019	9,086		86.54		8.46	16
Exercisable at April 26, 2019	22,102		65.01		4.81	495

The following table summarizes the total cash received from the issuance of new shares upon stock option award exercises, the total intrinsic value of options exercised, and the related tax benefit during fiscal years 2019, 2018, and 2017:

	Fiscal Year
(in millions)	2019		2018		2017
Cash proceeds from options exercised	$	825	$	250	$	367
Intrinsic value of options exercised	383		248		403
Tax benefit related to options exercised	78		75		140

Unrecognized compensation expense related to outstanding stock options at April 26, 2019 was $67 million and is expected to be recognized over a weighted average period of 2.5 years.

Restricted Stock The following table summarizes restricted stock activity, including activity from restricted stock assumed or issued as a result of acquisitions, during fiscal year 2019:

	Units (in thousands)		Wtd. Avg. Grant Price
Nonvested at April 27, 2018	8,236		$	83.35
Granted	2,812		88.78
Vested	(2,397	)	72.78
Forfeited	(655	)	83.73
Nonvested at April 26, 2019	7,996		88.40

The following table summarizes the weighted-average grant date fair value of restricted stock granted, total fair value of restricted stock vested and related tax benefit during fiscal years 2019, 2018, and 2017:

	Fiscal Year
(in millions, except per share data)	2019		2018		2017
Weighted-average grant-date fair value per restricted stock	$	88.78	$	83.88	$	85.07
Fair value of restricted stock vested	174		160		131
Tax benefit related to restricted stock vested	45		63		76

Unrecognized compensation expense related to restricted stock as of April 26, 2019 was $353 million and is expected to be recognized over a weighted average period of 2.5 years.

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Income Taxes

12 Months Ended

Apr. 26, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The income tax provision is based on income before income taxes reported for financial statement purposes. The components of income before income taxes, based on tax jurisdiction, are as follows:

	Fiscal Year
(in millions)	2019		2018			2017
U.S.	$	877	$	(958	)	$	(234	)
International	4,320		6,633			4,836
Income before income taxes	$	5,197	$	5,675		$	4,602

The income tax provision consists of the following:

	Fiscal Year
(in millions)	2019			2018			2017
Current tax expense:
U.S.	$	579		$	2,899		$	614
International	406			796			840
Total current tax expense	985			3,695			1,454
Deferred tax expense (benefit):
U.S.	(310		)	45			(399		)
International	(128		)	(1,160		)	(477		)
Net deferred tax benefit	(438		)	(1,115		)	(876		)
Income tax provision	$	547		$	2,580		$	578

On December 22, 2017, the U.S. government enacted comprehensive tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"), which significantly revises U.S. corporate income taxation by, among other things, lowering the U.S. corporate income tax rate from 35.0 percent to 21.0 percent effective January 1, 2018, broadening the base of taxation, implementing a territorial tax system, and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. 

The Company has recorded a cumulative income tax charge associated with the Tax Act totaling $2.4 billion. The $2.4 billion charge is made up of the following components:

• A $2.4 billion charge associated with the one-time repatriation tax based on post-1986 undistributed earnings and profits not previously subject to U.S. income tax and whether such earnings were held in cash or other specified assets.

• A $118 million charge resulting from the removal of the permanent reinvestment assertion on earnings and profits through April 27, 2018 for entities subject to the one-time repatriation tax.

• A $75 million net benefit associated with the remeasurement of U.S. Federal deferred tax assets, liabilities, and valuation allowances, and impacts from the decrease in the U.S. statutory tax rate.

The Company made the accounting policy election to treat taxes due on U.S. inclusions in taxable income related to Global Intangible Low-Taxed Income (GILTI) as a current period expense when incurred (the "period cost method").

Tax assets (liabilities), shown before jurisdictional netting of deferred tax assets (liabilities), are comprised of the following:

(in millions)	April 26, 2019			April 27, 2018
Deferred tax assets:
Net operating loss, capital loss, and credit carryforwards	$	6,574		$	7,463
Other accrued liabilities	389			410
Accrued compensation	315			209
Pension and post-retirement benefits	300			256
Stock-based compensation	162			190
Other	339			332
Inventory	194			207
Federal and state benefit on uncertain tax positions	83			67
Interest limitation	111			—
Unrealized loss on available-for-sale securities and derivative financial instruments	17			93
Gross deferred tax assets	8,484			9,227
Valuation allowance	(6,300		)	(7,166		)
Total deferred tax assets	2,184			2,061
Deferred tax liabilities:
Intangible assets	(1,614		)	(1,697		)
Realized loss on derivative financial instruments	(70		)	(69		)
Other	(152		)	(143		)
Accumulated depreciation	(38		)	(38		)
Outside basis difference of subsidiaries	(119		)	(131		)
Total deferred tax liabilities	(1,993		)	(2,078		)
Prepaid income taxes	363			406
Income tax receivables	335			315
Tax assets, net	$	889		$	704
Reported as (after valuation allowance and jurisdictional netting):
Other current assets	$	648		$	662
Tax assets	1,519			1,465
Deferred tax liabilities	(1,278		)	(1,423		)
Tax assets, net	$	889		$	704

No deferred taxes have been provided on the approximately $64.1 billion and $61.0 billion of undistributed earnings of the Company’s subsidiaries at April 26, 2019 and April 27, 2018, respectively, since these earnings have been, and under current plans will continue to be, permanently reinvested in these subsidiaries. During fiscal year 2018, the Company removed its permanently reinvested assertion on the undistributed earnings of certain foreign subsidiaries with a U.S. parent which were subject to the transition tax. The Company removed the assertion for all earnings of such subsidiaries through April 27, 2018 and reasserted for earnings generated in subsequent fiscal years. Due to the number of legal entities and jurisdictions involved, the complexity of the legal entity structure of the Company, and the complexity of the tax laws in the relevant jurisdictions, the Company believes it is not practicable to estimate, within any reasonable range, the amount of additional taxes which may be payable upon distribution of these undistributed earnings.

At April 26, 2019, the Company had approximately $26.2 billion of net operating loss carryforwards in certain non-U.S. jurisdictions, of which $22.9 billion have no expiration, and the remaining $3.3 billion will expire during fiscal years 2020 through 2039. Included in these net operating loss carryforwards are $18.1 billion of net operating losses related to a subsidiary of the Company, substantially all of which were recorded in fiscal 2008 as a result of the receipt of a favorable tax ruling from certain non-U.S. taxing authorities. The Company has recorded a full valuation allowance against these net operating losses, as management does not believe that it is more likely than not that these net operating losses will be utilized. Certain of the remaining non-U.S.

net operating loss carryforwards of $8.1 billion have a valuation allowance recorded against the carryforwards, as management does not believe that it is more likely than not that these net operating losses will be utilized.

At April 26, 2019, the Company had $682 million of U.S. federal net operating loss carryforwards, which will expire during fiscal years 2020 through 2036. For U.S. state purposes, the Company had $1.3 billion of net operating loss carryforwards at April 26, 2019, which will expire during fiscal years 2020 through 2039.

At April 26, 2019, the Company also had $178 million of tax credits available to reduce future income taxes payable, of which $66 million have no expiration. The remaining credits expire during fiscal years 2020 through 2039.

The Company has established valuation allowances of $6.3 billion and $7.2 billion at April 26, 2019 and April 27, 2018, respectively, primarily related to the uncertainty of the utilization of certain deferred tax assets which are primarily comprised of tax loss and credit carryforwards in various jurisdictions. The decrease in the valuation allowance during fiscal year 2019 is primarily related to tax rate changes and the effects of currency fluctuations. These valuation allowances would result in a reduction to the income tax provision in the consolidated statements of income if they are ultimately not required.

The Company’s effective income tax rate varied from the U.S. federal statutory tax rate as follows:

	Fiscal Year
	2019		2018		2017
U.S. federal statutory tax rate	21.0	%	30.5	%	35.0	%
Increase (decrease) in tax rate resulting from:
U.S. state taxes, net of federal tax benefit	0.9		0.8		1.0
Research and development credit	(1.2	)	(0.8	)	(0.9	)
Puerto Rico Excise Tax	(1.6	)	(1.1	)	(1.5	)
International	(10.7	)	(18.9	)	(27.9	)
U.S. Tax Reform	0.2		43.0		—
Stock based compensation	(1.0	)	(1.0	)	—
Other, net	(0.2	)	3.0		(1.0	)
Divestiture related	—		(3.8	)	—
Certain tax adjustments	(1.0	)	(8.9	)	4.4
U.S. tax on foreign earnings	4.1		2.7		3.5
Effective tax rate	10.5	%	45.5	%	12.6	%

During fiscal year 2019, certain tax adjustments of $40 million, recognized in income tax provision in the consolidated statements of income, included the following:

• A net benefit of $30 million associated with the finalization of the transition tax liability and the Tax Act impact to deferred tax assets, liabilities, and valuation allowances.

• A charge of $42 million related to the recognition of a prepaid tax expense resulting from the reduction in the U.S. statutory tax rate under the Tax Act and the current year sale of U.S. manufactured inventory held as of April 27, 2018.

• A benefit of $32 million related to intercompany legal entity restructuring.

• A net benefit of $20 million with the finalization of certain income tax aspects of the divestiture of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses.

During fiscal year 2018, certain tax adjustments of $1.9 billion, recognized in income tax provision in the consolidated statements of income, included the following:

• A net charge of $2.4 billion associated with U.S. tax reform, inclusive of the transition tax, remeasurement of U.S. Federal deferred tax assets and liabilities, and the decrease in the U.S. statutory tax rate.

• A charge of $73 million associated with an internal reorganization of certain foreign subsidiaries.

• A net benefit of $579 million associated with the intercompany sale of intellectual property.

During fiscal year 2017, certain tax adjustments of $202 million, recognized in income tax provision in the consolidated statements of income, included the following:

• A charge of $404 million associated with the IRS resolution for the Ardian, CoreValve, Inc., Ablation Frontiers, Inc., PEAK Surgical, Inc. and Salient Surgical Technologies, Inc. acquisition-related issues and the allocation of income between Medtronic, Inc. and its wholly owned subsidiary operating in Puerto Rico for certain businesses. This resolution does not include the businesses that are the subject of the Medtronic, Inc. U.S. Tax Court case for fiscal years 2005 and 2006.

• A net charge of $125 million associated with the divestiture of a portion of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses. The net charge primarily relates to the tax effect from the recognition of the outside basis difference of certain subsidiaries, which are included in the expected divestiture.

• A charge of $86 million associated with the IRS’s disallowance of the utilization of certain net operating losses, along with the recognition of a valuation allowance against the net operating loss deferred tax asset, which were recognized during the year.

• A charge of $18 million as a result of the redemption of an intercompany minority interest during the year.

• A benefit of $431 million as the result of the resolution of Covidien's previously disclosed Tyco International plc intercompany debt issues with the U.S. Tax Court and the Appeals Division of the IRS.

Currently, the Company’s operations in Puerto Rico, Switzerland, Singapore, Dominican Republic, Costa Rica, China, and Israel have various tax holidays and tax incentive grants. The tax reductions as compared to the local statutory rate favorably impacted earnings by $437 million, $446 million, and $475 million in fiscal years 2019, 2018, and 2017, respectively, and earnings per diluted share by $0.32, $0.33, and $0.34 in fiscal years 2019, 2018, and 2017, respectively. The tax holidays are conditional upon the Company meeting certain thresholds required under statutory law. The tax incentive grants, unless extended, will expire between fiscal years 2020 and 2030. The Company’s historical practice has been to renew, extend, or obtain new tax incentive grants upon expiration of existing tax incentive grants. If the Company is not able to renew, extend, or obtain new tax incentive grants, the expiration of existing tax incentive grants could have a material impact on the Company’s financial results in future periods. The tax incentive grants which expired during fiscal year 2019 did not have a material impact on the Company's consolidated financial statements.

The Company had $1.8 billion, $1.7 billion, and $1.9 billion of gross unrecognized tax benefits at April 26, 2019, April 27, 2018, and April 28, 2017, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal years 2019, 2018, and 2017 is as follows:

	Fiscal Year
(in millions)	2019			2018			2017
Gross unrecognized tax benefits at beginning of fiscal year	$	1,727		$	1,896		$	2,703
Gross increases:
Prior year tax positions	34			13			147
Current year tax positions	109			63			75
Acquisitions	—			—			4
Gross decreases:
Prior year tax positions	(14		)	(120		)	(538		)
Settlements	—			(80		)	(467		)
Statute of limitation lapses	(20		)	(45		)	(28		)
Gross unrecognized tax benefits at end of fiscal year	1,836			1,727			1,896
Cash advance paid to taxing authorities	(859		)	(859		)	—
Gross unrecognized tax benefits at end of fiscal year, net of cash advance	$	977		$	868		$	1,896

If all of the Company’s unrecognized tax benefits at April 26, 2019, April 27, 2018, and April 28, 2017 were recognized, $1.8 billion, $1.7 billion, and $1.8 billion would impact the Company’s effective tax rate, respectively. Although the Company believes that it has adequately provided for liabilities resulting from tax assessments by taxing authorities, positions taken by these tax authorities could have a material impact on the Company’s effective tax rate in future periods. The Company has recorded gross unrecognized tax benefits, net of cash advance, of $977 million as a noncurrent liability which is not expected to decrease within the next 12 months.

The Company recognizes interest and penalties related to income tax matters in income tax provision in the consolidated statements of income and records the liability in the current or noncurrent accrued income taxes in the consolidated balance sheets, as appropriate. The Company had $172 million, $128 million, and $360 million of accrued gross interest and penalties at April 26, 2019, April 27, 2018, and April 28, 2017, respectively. During fiscal years 2019, 2018, and 2017, the Company recognized gross interest expense (income) of approximately $48 million, $84 million, and $(208) million, respectively, in income tax provision in the consolidated statements of income.

During fiscal year 2018, the Company made a $1.1 billion advance payment to the IRS in connection with certain tax matters for fiscal years 2005 through 2014. This payment was comprised of $859 million of tax and $285 million of interest.

The Company’s reserves for uncertain tax positions related to unresolved matters with the IRS and other taxing authorities. These reserves are subject to a high degree of estimation and management judgment. Resolution of these significant unresolved matters, or positions taken by the IRS or other tax authorities during future tax audits, could have a material impact on the Company’s financial results in future periods. The Company continues to believe that its reserves for uncertain tax positions are appropriate and that it has meritorious defenses for its tax filings and will vigorously defend them during the audit process, appellate process, and through litigation in courts, as necessary.

The major tax jurisdictions where the Company conducts business which remain subject to examination are as follows:

Jurisdiction	Earliest Year Open
United States - federal and state	1998
Brazil	2014
Canada	2011
China	2009
Costa Rica	2015
Dominican Republic	2016
Germany	2014
India	2002
Ireland	2012
Israel	2010
Italy	2005
Japan	2017
Luxembourg	2013
Mexico	2005
Puerto Rico	2011
Singapore	2013
Switzerland	2012
United Kingdom	2016

See Note 19 for additional information regarding the status of current tax audits and proceedings.

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Earnings Per Share

12 Months Ended

Apr. 26, 2019

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Earnings per share is calculated using the two-class method, as the Company's A Preferred Shares are considered participating securities. Accordingly, earnings are allocated to both ordinary shares and participating securities in determining earnings per ordinary share. Due to the limited number of A Preferred Shares outstanding, this allocation had no effect on the ordinary earnings

per share; therefore, it is not presented below. Basic earnings per share is computed based on the weighted average number of ordinary shares outstanding. Diluted earnings per share is computed based on the weighted number of ordinary shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive ordinary shares been issued, and reduced by the number of shares the Company could have repurchased with the proceeds from issuance of the potentially dilutive shares. Potentially dilutive ordinary shares include stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan.

The table below sets forth the computation of basic and diluted earnings per share:

	Fiscal Year
(in millions, except per share data)	2019		2018		2017
Numerator:
Net income attributable to ordinary shareholders	$	4,631	$	3,104	$	4,028
Denominator:
Basic – weighted average shares outstanding	1,346.4		1,356.7		1,378.9
Effect of dilutive securities:
Employee stock options	7.6		7.9		9.0
Employee restricted stock units	3.2		3.3		3.4
Other	0.3		0.3		0.1
Diluted – weighted average shares outstanding	1,357.5		1,368.2		1,391.4
Basic earnings per share	$	3.44	$	2.29	$	2.92
Diluted earnings per share	$	3.41	$	2.27	$	2.89

The calculation of weighted average diluted shares outstanding excludes options to purchase approximately 7 million, 10 million, and 7 million ordinary shares in fiscal years 2019, 2018, and 2017, respectively, because their effect would have been anti-dilutive on the Company’s earnings per share.

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Retirement Benefit Plans

12 Months Ended

Apr. 26, 2019

Retirement Benefits [Abstract]

Retirement Benefit Plans

Retirement Benefit Plans

The Company sponsors various retirement benefit plans, including defined benefit pension plans, post-retirement medical plans, defined contribution savings plans, and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. The expense related to these plans was $539 million, $552 million, and $602 million in fiscal years 2019, 2018, and 2017, respectively.

In the U.S., the Company maintains a qualified pension plan designed to provide guaranteed minimum retirement benefits to all eligible U.S. employees. Pension coverage for non-U.S. employees is provided, to the extent deemed appropriate, through separate plans. In addition to the benefits provided under the qualified pension plan, retirement benefits associated with wages in excess of the IRS allowable limits are provided to certain employees under a non-qualified plan. U.S. and Puerto Rico employees are also eligible to receive a medical benefit component, in addition to normal retirement benefits, through the Company’s post-retirement benefits.

At April 26, 2019 and April 27, 2018, the net underfunded status of the Company’s benefit plans was $1.1 billion and $942 million, respectively.

Effective May 1, 2019, the Company split the U.S. Pension Plan (Medtronic Retirement Plan) into two new plans. The plan split has no impact to participant benefits, or to the accumulated benefit obligation as of April 26, 2019.

During fiscal year 2017, the company offered certain eligible U.S. employees voluntary early retirement packages. The acceptance of this offer by eligible U.S. employees caused incremental expenses of $73 million to be recognized during fiscal year 2017. Of this amount, $60 million related to U.S. pension benefits, $7 million related to U.S. post-retirement benefits, $4 million related to defined contribution plans, and $2 million related to cash payments and administrative fees.

Defined Benefit Pension Plans The change in benefit obligation and funded status of the Company’s U.S. and Non-U.S. pension benefits are as follows:

	U.S. Pension Benefits						Non-U.S. Pension Benefits
	Fiscal Year						Fiscal Year
(in millions)	2019			2018			2019			2018
Accumulated benefit obligation at end of year:	$	3,121		$	2,943		$	1,621		$	1,580
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	3,202		$	3,232		$	1,791		$	1,734
Service cost	109			116			59			67
Interest cost	129			117			30			28
Employee contributions	—			—			12			12
Plan curtailments and settlements	—			(168		)	(5		)	(8		)
Actuarial loss (gain)	54			12			119			(74		)
Benefits paid	(100		)	(107		)	(49		)	(51		)
Currency exchange rate changes and other	10			—			(125		)	146
Divestiture	—			—			—			(63		)
Projected benefit obligation at end of year	$	3,404		$	3,202		$	1,832		$	1,791
Change in plan assets:
Fair value of plan assets at beginning of year	$	2,661		$	2,479		$	1,404		$	1,235
Actual return on plan assets	64			243			62			67
Employer contributions	93			215			78			90
Employee contributions	—			—			12			13
Plan settlements	—			(168		)	(3		)	(4		)
Benefits paid	(100		)	(108		)	(49		)	(51		)
Currency exchange rate changes and other	10			—			(95		)	108
Divestiture	—			—			—			(54		)
Fair value of plan assets at end of year	$	2,728		$	2,661		$	1,409		$	1,404
Funded status at end of year:
Fair value of plan assets	$	2,728		$	2,661		$	1,409		$	1,404
Benefit obligations	3,404			3,202			1,832			1,791
Underfunded status of the plans	(676		)	(541		)	(423		)	(387		)
Recognized liability	$	(676	)	$	(541	)	$	(423	)	$	(387	)
Amounts recognized on the consolidated balance sheets consist of:
Non-current assets	$	—		$	—		$	31		$	16
Current liabilities	(18		)	(17		)	(8		)	(8		)
Non-current liabilities	(658		)	(524		)	(446		)	(395		)
Recognized liability	$	(676	)	$	(541	)	$	(423	)	$	(387	)
Amounts recognized in accumulated other comprehensive loss:
Prior service cost (benefit)	$	2		$	2		$	(7	)	$	(9	)
Net actuarial loss	1,216			1,088			452			380
Ending balance	$	1,218		$	1,090		$	445		$	371

In certain countries outside the U.S., fully funding pension plans is not a common practice, as funding provides no income tax benefit. Consequently, certain pension plans were partially funded at April 26, 2019 and April 27, 2018. U.S. and non-U.S. plans with accumulated benefit obligations in excess of plan assets consist of the following:

	Fiscal Year
(in millions)	2019		2018
Accumulated benefit obligation	$	4,683	$	4,110
Projected benefit obligation	4,822		4,282
Plan assets at fair value	3,829		3,472

Plans with projected benefit obligations in excess of plan assets consist of the following:

	Fiscal Year
(in millions)	2019		2018
Projected benefit obligation	$	4,963	$	4,736
Plan assets at fair value	3,833		3,793

The net periodic benefit cost of the plans include the following components:

	U.S. Pension Benefits									Non-U.S. Pension Benefits
	Fiscal Year									Fiscal Year
(in millions)	2019			2018			2017			2019			2018			2017
Service cost	$	109		$	116		$	117		$	59		$	67		$	70
Interest cost	129			117			109			30			28			26
Expected return on plan assets	(215		)	(205		)	(195		)	(57		)	(53		)	(48		)
Amortization of prior service cost	1			1			1			(1		)	—			(1		)
Amortization of net actuarial loss	76			82			88			12			18			17
Settlement loss (gain)	—			16			—			(2		)	—			—
Special termination benefits	—			—			60			—			—			—
Net periodic benefit cost	$	100		$	127		$	180		$	41		$	60		$	64

The other changes in plan assets and projected benefit obligations recognized in accumulated other comprehensive loss for fiscal year 2019 are as follows:

(in millions)	U.S. Pension Benefits			Non-U.S. Pension Benefits
Net actuarial gain	$	205		$	113
Amortization of prior service cost	(1		)	1
Amortization of net actuarial loss	(76		)	(12		)
Effect of exchange rates	—			(29		)
Total recognized in accumulated other comprehensive loss	$	128		$	73
Total recognized in net periodic benefit cost and accumulated other comprehensive loss	$	228		$	114

The estimated net actuarial loss that will be amortized from accumulated other comprehensive loss into net periodic benefit cost, before tax, in fiscal year 2020 for U.S. and non-U.S. pension benefits is expected to be $57 million and $13 million, respectively.

The actuarial assumptions are as follows:

	U.S. Pension Benefits						Non-U.S. Pension Benefits
	Fiscal Year						Fiscal Year
	2019		2018		2017		2019		2018		2017
Critical assumptions – projected benefit obligation:
Discount rate	3.90% - 4.20%		4.20% - 4.35%		3.70% - 4.30%		0.40% - 13.90%		0.70% - 11.00%		0.45% - 11.40%
Rate of compensation increase	3.90	%	3.90	%	3.90	%	2.87	%	2.88	%	2.89	%
Critical assumptions – net periodic benefit cost:
Discount rate – benefit obligation	4.20% - 4.30%		4.00% - 4.30%		3.55% - 4.30%		0.50% - 11.00%		0.45% - 11.40%		0.25% - 10.20%
Discount rate – service cost	4.10% - 4.40%		3.70% - 4.45%		3.60% - 4.45%		0.50% - 11.00%		0.20% - 11.40%		0.05% - 10.20%
Discount rate – interest cost	4.00% - 4.10%		3.45% - 3.80%		2.90% - 3.80%		0.50% - 11.00%		0.45% - 11.40%		0.30% - 10.20%
Expected return on plan assets	7.90	%	7.90	%	8.20	%	4.23	%	4.20	%	4.45	%
Rate of compensation increase	3.90	%	3.90	%	3.90	%	2.88	%	2.89	%	2.83	%

The Company utilizes a full yield curve approach methodology to estimate the service and interest cost components of net periodic pension cost and net periodic post-retirement benefit cost for the Company’s pension and other post-retirement benefits. The full yield curve approach applies specific spot rates along the yield curve to their underlying projected cash flows in estimation of the cost components. The current yield curves represent high quality, long-term fixed income instruments.

The expected long-term rate of return on plan assets assumptions are determined using a building block approach, considering historical averages and real returns of each asset class. In certain countries, where historical returns are not meaningful, consideration is given to local market expectations of long-term returns.

Retirement Benefit Plan Investment Strategy The Company sponsors trusts that hold the assets for U.S. pension plans and other U.S. post-retirement benefit plans, primarily retiree medical benefits. For investment purposes, the legacy Medtronic U.S. pension and other U.S. post-retirement benefit plans are managed in an identical way, as their objectives are similar.

The Company has a Qualified Plan Committee (the Plan Committee) that sets investment guidelines for U.S. pension plans and other U.S. post-retirement benefit plans with the assistance of external consultants. These guidelines are established based on market conditions, risk tolerance, funding requirements, and expected benefit payments. The Plan Committee also oversees the investment allocation process, selects the investment managers, and monitors asset performance. As pension liabilities are long-term in nature, the Company employs a long-term total return approach to maximize the long-term rate of return on plan assets for a prudent level of risk. An annual analysis on the risk versus the return of the investment portfolio is conducted to justify the expected long-term rate of return assumption.

The investment portfolios contain a diversified allocation of investment categories, including equities, fixed income securities, hedge funds, and private equity. Securities are also diversified in terms of domestic and international, short- and long-term, growth and value styles, large cap and small cap stocks, and active and passive management.

Outside the U.S., pension plan assets are typically managed by decentralized fiduciary committees. There is significant variation in policy asset allocation from country to country. Local regulations, funding rules, and financial and tax considerations are part of the funding and investment allocation process in each country. The weighted average target asset allocations at April 26, 2019 for the plans are 38% equity securities, 30% debt securities, and 32% other.

The plans did not hold any investments in the Company’s ordinary shares at April 26, 2019 or April 27, 2018.

The Company’s U.S. plans target asset allocations at April 26, 2019, compared to the U.S. plans actual asset allocations at April 26, 2019 and April 27, 2018 by asset category, are as follows:

U.S. Plans
	Target Allocation		Actual Allocation
	April 26, 2019		April 26, 2019		April 27, 2018
Asset Category:
Equity securities	49	%	50	%	49	%
Debt securities	32		34		32
Other	19		16		19
Total	100	%	100	%	100	%

Retirement Benefit Plan Asset Fair Values The following is a description of the valuation methodologies used for retirement benefit plan assets measured at fair value:

Short-term investments: Valued at the closing price reported in the active markets in which the individual security is traded.

U.S. government securities: Certain U.S. government securities are valued at the closing price reported in the active markets in which the individual security is traded. Other U.S. government securities are valued based on inputs other than quoted prices that are observable.

Corporate debt securities: Valued based on inputs other than quoted prices that are observable.

Equity commingled trusts: Comprised of investments in equity securities held in pooled investment vehicles. The valuations of equity commingled trusts are based on the respective net asset values which are determined by the fund daily at market close. The net asset values are calculated based on the valuation of the underlying assets which are determined using observable inputs. The net asset values are not publicly reported and funds are valued at the net asset value practical expedient.

Fixed income commingled trusts: Comprised of investments in fixed income securities held in pooled investment vehicles. The valuations of fixed income commingled trusts are based on the respective net asset values which are determined by the fund daily at market close. The net asset values are calculated based on the valuation of the underlying assets which are determined using observable inputs. The net asset values are not publicly reported and funds are valued at the net asset value practical expedient.

Partnership units: Valued based on the year-end net asset values of the underlying partnerships. The net asset values of the partnerships are based on the fair values of the underlying investments of the partnerships. Quoted market prices are used to value the underlying investments of the partnerships, where the partnerships consist of the investment pools which invest primarily in common stocks. Partnership units include partnerships, private equity investments, and real asset investments. Partnerships primarily include long/short equity and absolute return strategies. These investments may be redeemed monthly with notice periods ranging from 45 to 95 days. At April 26, 2019, there are no funds in the process of liquidation. Private equity investments consist of common stock and debt instruments of private companies. For private equity funds, the sum of the unfunded commitments at April 26, 2019 is $337 million, and the estimated liquidation period of these funds is expected to be one to 15 years. Real asset investments consist of commodities, derivatives, Real Estate Investment Trusts, and illiquid real estate holdings. These investments have redemption and liquidation periods ranging from 30 days to 10 years. At April 26, 2019, there are no real estate investments in the process of liquidation. Valuation procedures are utilized to arrive at fair value if a quoted market price is not available for a partnership investment.

Registered investment companies: Valued at net asset values which are not publicly reported. The net asset values are calculated based on the valuation of the underlying assets. The underlying assets are valued at the quoted market prices of shares held by the plan at year-end in the active market on which the individual securities are traded.

Insurance contracts: Comprised of investments in collective (group) insurance contracts, consisting of individual insurance policies. The policyholder is the employer and each member is the owner/beneficiary of their individual insurance policy. These policies are a part of the insurance company’s general portfolio and participate in the insurer’s profit-sharing policy on an excess yield basis.

The methods described above may produce fair values that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methodologies are appropriate and consistent with other market

participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

There were no transfers between Level 1, Level 2, or Level 3 during fiscal years 2019 or 2018.

The following tables provide information by level for the retirement benefit plan assets that are measured at fair value, as defined by U.S. GAAP. See Note 1 for discussion of the fair value measurement terms of Levels 1, 2, and 3. In accordance with authoritative guidance adopted in fiscal year 2017, certain investments for which the fair value is measured using the net asset value per share (or its equivalent) practical expedient are not presented within the fair value hierarchy. The fair value amounts presented for these investments are intended to permit reconciliation to the total fair value of plan assets at April 26, 2019 and April 27, 2018.

U.S. Pension Benefits

	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 26, 2019		Level 1		Level 2		Level 3
Short-term investments	$	61	$	61	$	—	$	—	$	—
U.S. government securities	228		228		—		—		—
Corporate debt securities	144		—		144		—		—
Equity commingled trusts	1,365		—		—		—		1,365
Fixed income commingled trusts	301		—		—		—		301
Partnership units	629		—		—		629		—
	$	2,728	$	289	$	144	$	629	$	1,666

	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 27, 2018		Level 1		Level 2		Level 3
Short-term investments	$	181	$	181	$	—	$	—	$	—
U.S. government securities	181		181		—		—		—
Corporate debt securities	142		—		142		—		—
Equity commingled trusts	1,322		—		—		—		1,322
Fixed income commingled trusts	298		—		—		—		298
Partnership units	537		—		—		537		—
	$	2,661	$	362	$	142	$	537	$	1,620

The following tables provide a reconciliation of the beginning and ending balances of U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3):

(in millions)	Partnership Units
April 27, 2018	$	537
Total realized losses	(1		)
Total unrealized gains	52
Purchases and sales, net	41
April 26, 2019	$	629

(in millions)	Partnership Units
April 28, 2017	$	468
Total realized losses	(42		)
Total unrealized gains	141
Purchases and sales, net	(30		)
April 27, 2018	$	537

Non-U.S. Pension Benefits

	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 26, 2019		Level 1		Level 2		Level 3
Registered investment companies	$	1,368	$	—	$	—	$	—	$	1,368
Insurance contracts	41		—		—		41		—
	$	1,409	$	—	$	—	$	41	$	1,368

	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 27, 2018		Level 1		Level 2		Level 3
Registered investment companies	$	1,362	$	—	$	—	$	—	$	1,362
Insurance contracts	42		—		—		42		—
	$	1,404	$	—	$	—	$	42	$	1,362

The following tables provide a reconciliation of the beginning and ending balances of non-U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3):

(in millions)	Insurance Contracts
April 27, 2018	$	42
Total unrealized gains	1
Purchases and sales, net	1
Currency exchange rate changes	(3		)
April 26, 2019	$	41

(in millions)	Insurance Contracts
April 28, 2017	$	44
Total unrealized gains	2
Purchases and sales, net	(7		)
Currency exchange rate changes	3
April 27, 2018	$	42

Retirement Benefit Plan Funding It is the Company’s policy to fund retirement costs within the limits of allowable tax deductions. During fiscal year 2019, the Company made discretionary contributions of approximately $93 million to the U.S. pension plan. Internationally, the Company contributed approximately $78 million for pension benefits during fiscal year 2019. The Company anticipates that it will make contributions of $93 million and $60 million to its U.S. pension benefit plans and non-U.S. pension benefit plans, respectively, in fiscal year 2020. Based on the guidelines under the U.S. Employee Retirement Income Security Act of 1974 and the various guidelines which govern the plans outside the U.S., the majority of anticipated fiscal year 2020 contributions

will be discretionary. The Company believes that, along with pension assets, the returns on invested pension assets, and Company contributions, the Company will be able to meet its pension and other post-retirement obligations in the future.

Retiree benefit payments, which reflect expected future service, are anticipated to be paid as follows:

(in millions)	Gross Payments
Fiscal Year	U.S. Pension Benefits		Non-U.S. Pension Benefits
2020	$	115	$	51
2021	123		49
2022	133		51
2023	144		57
2024	154		56
2025 – 2029	954		350
Total	$	1,623	$	614

Post-retirement Benefit Plans The net periodic benefit cost associated with the Company’s post-retirement benefit plans was income of $17 million and $9 million in fiscal years 2019 and 2018, respectively, and expense of $11 million in fiscal year 2017. The Company’s projected benefit obligation for all post-retirement benefit plans was $323 million and $317 million at April 26, 2019 and April 27, 2018, respectively. The Company’s fair value of plan assets for all post-retirement benefit plans was $297 million and $303 million at April 26, 2019 and April 27, 2018, respectively.

Defined Contribution Savings Plans The Company has defined contribution savings plans that cover substantially all U.S. employees and certain non-U.S. employees. The general purpose of these plans is to provide additional financial security during retirement by providing employees with an incentive to make regular savings. Company contributions to the plans are based on employee contributions and Company performance. Expense recognized under these plans was $415 million, $374 million, and $347 million in fiscal years 2019, 2018, and 2017, respectively.

Effective May 1, 2005, the Company froze participation in the original defined benefit pension plan in the U.S. and implemented two new plans: an additional defined benefit pension plan, the Personal Pension Account (PPA), and a new defined contribution plan, the Personal Investment Account (PIA). Employees in the U.S. hired on or after May 1, 2005 but before January 1, 2016 had the option to participate in either the PPA or the PIA. Participants in the PPA receive an annual allocation of their salary and bonus on which they will receive an annual guaranteed rate of return, which is based on the ten-year Treasury bond rate. Participants in the PIA also receive an annual allocation of their salary and bonus; however, they are allowed to determine how to invest their funds among identified fund alternatives. The cost associated with the PPA is included in U.S. Pension Benefits in the tables presented earlier. The defined contribution cost associated with the PIA was approximately $54 million, $56 million, and $58 million in fiscal years 2019, 2018, and 2017, respectively.

Effective January 1, 2016, the Company froze participation in the existing defined benefit (PPA) and contribution (PIA) pension plans in the U.S. and implemented a new form of benefit under the existing defined contribution plan for legacy Covidien employees and employees in the U.S. hired on or after January 1, 2016. Participants in the Medtronic Core Contribution (MCC) also receive an annual allocation of their salary and bonus and are allowed to determine how to invest their funds among identified fund alternatives. The defined contribution cost associated with the MCC was approximately $58 million, $49 million, and $45 million and in fiscal years 2019, 2018, and 2017, respectively.

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Leases

12 Months Ended

Apr. 26, 2019

Leases [Abstract]

Leases

Leases

The Company leases office, manufacturing, and research facilities and warehouses, as well as transportation, data processing, and other equipment. A substantial number of these leases contain options that allow the Company to renew at the fair rental value on the date of renewal.

Future minimum payments under non-cancelable operating leases at April 26, 2019 are:

(in millions) Fiscal Year	Operating Leases
2020	$	216
2021	157
2022	103
2023	61
2024	34
Thereafter	81
Total minimum lease payments	$	652

Rent expense for all operating leases was $305 million, $319 million, and $294 million in fiscal years 2019, 2018, and 2017, respectively.

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Accumulated Other Comprehensive Loss

12 Months Ended

Apr. 26, 2019

Other Comprehensive Income (Loss), before Tax [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The following table provides changes in AOCI, net of tax and by component.

(in millions)	Unrealized (Loss) Gain on Investment Securities			Cumulative Translation Adjustments			Net Investment Hedges			Net Change in Retirement Obligations			Unrealized (Loss) Gain on Cash Flow Hedges			Total Accumulated Other Comprehensive (Loss) Income
April 28, 2017	$	(69	)	$	(1,195	)	$	(257	)	$	(1,129	)	$	37		$	(2,613	)
Other comprehensive (loss) income before reclassifications	(95		)	1,218			—			100			(272		)	951
Reclassifications	(8		)	(34		)	—			67			54			79
Other comprehensive (loss) income	(103		)	1,184			—			167			(218		)	1,030
Cumulative effect of change in accounting principle(1)	(22		)	—			—			(155		)	(26		)	(203		)
April 27, 2018	(194		)	(11		)	(257		)	(1,117		)	(207		)	(1,786		)
Other comprehensive income (loss) before reclassifications	67			(1,372		)	88			(266		)	457			(1,026		)
Reclassifications	35			—			—			75			(56		)	54
Other comprehensive income (loss)	102			(1,372		)	88			(191		)	401			(972		)
Cumulative effect of change in accounting principle(2)	47			—			—			—			—			47
April 26, 2019	$	(45	)	$	(1,383	)	$	(169	)	$	(1,308	)	$	194		$	(2,711	)

(1) The cumulative effect of change in accounting principle in fiscal year 2018 related to the Company's adoption of accounting guidance which permitted reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Act.

(2) See Note 1 to the consolidated financial statements for discussion regarding the adoption of accounting standards during fiscal year 2019.

The income tax on gains and losses on investment securities in other comprehensive income before reclassifications during fiscal years 2019, 2018, and 2017 was a benefit of $5 million, an expense of $26 million, and an expense of $41 million, respectively. During fiscal years 2019, 2018, and 2017, realized gains and losses on investment securities reclassified from AOCI were reduced by income taxes of $3 million, $4 million, and $8 million, respectively. When realized, gains and losses on investment securities reclassified from AOCI are recognized within other non-operating income, net. Refer to Note 6 for additional information.

During fiscal year 2019, the income tax benefit on cumulative translation adjustments was $7 million. During fiscal years 2018 and 2017, taxes were not provided on cumulative translation adjustments as substantially all translation adjustments relate to earnings that were intended to be indefinitely reinvested outside the U.S.

During fiscal years 2019, 2018, and 2017, there were no tax impacts on net investment hedges. Refer to Note 8 for additional information.

The net change in retirement obligations in other comprehensive income includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost. The income tax on the net change in retirement obligations in other comprehensive income before reclassifications during fiscal years 2019, 2018, and 2017 was a benefit of $63 million, an expense of $14 million, and an expense of $41 million, respectively. During fiscal years 2019, 2018, and 2017, the gains and losses on defined benefit and pension items reclassified from AOCI were reduced by income taxes of $19 million, $27 million, and $23 million, respectively. Refer to Note 16 for additional information.

The income tax on unrealized gains and losses on cash flow hedges in other comprehensive income before reclassifications during fiscal years 2019, 2018, and 2017 was an expense of $158 million, a benefit of $132 million, and an expense of $130 million, respectively. During fiscal years 2019, 2018, and 2017, gains and losses on cash flow hedges reclassified from AOCI were reduced by income taxes of $24 million, $22 million, and $61 million, respectively. When realized, gains and losses on currency exchange rate contracts reclassified from AOCI are recognized within other operating expense, net  and gains and losses on forward starting interest rate derivatives reclassified from AOCI are recognized within interest expense. Refer to Note 8 for additional information.

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Commitments and Contingencies

12 Months Ended

Apr. 26, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Matters

The Company and its affiliates are involved in a number of legal actions involving product liability, intellectual property and commercial 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 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 April 26, 2019 and April 27, 2018, accrued litigation was approximately $0.5 billion and $0.9 billion, respectively. The ultimate cost to the Company with respect to accrued litigation could be materially different than the amount of the current estimates and accruals and could have a material adverse impact on the Company’s consolidated earnings, financial position, and/or cash flows. The Company includes accrued litigation in other accrued expenses and other liabilities on the consolidated balance sheets. While it is not possible to predict the outcome for most of the legal matters discussed below, the Company believes it is possible that the costs associated with these matters could have a material adverse impact on the Company’s consolidated earnings, financial position, and/or cash flows.

Product Liability Matters

Sprint Fidelis

In 2007, a putative class action was filed in the Ontario Superior Court of Justice in Canada seeking damages for personal injuries allegedly related to the Company's Sprint Fidelis family of defibrillation leads. On October 20, 2009, the court certified a class proceeding but denied class certification on plaintiffs' claim for punitive damages. The Company has recognized an expense for probable and estimable damages related to this matter, and during the fourth quarter of fiscal year 2019 the Company paid out previously accrued settlement amounts with no admission of liability, bringing this matter to a conclusion.

INFUSE Litigation

The Company estimated law firms representing approximately 6,000 claimants asserted or intended to assert personal injury claims against Medtronic in the U.S. state and federal courts involving the INFUSE bone graft product. As of June 1, 2017, the Company

had reached agreements to settle substantially all of these claims, and during the fourth quarter of fiscal year 2019 the Company paid out previously accrued settlement amounts with no admission of liability, bringing this matter to a conclusion.

Pelvic Mesh Litigation

The Company is currently involved in litigation in various state and federal courts against manufacturers of pelvic mesh products alleging personal injuries resulting from the implantation of those products. Two subsidiaries of Covidien supplied pelvic mesh products to one of the manufacturers, C.R. Bard (Bard), named in the litigation. The litigation includes a federal multi-district litigation in the U.S. District Court for the Northern District of West Virginia and cases in various state courts and jurisdictions outside the U.S. Generally, complaints allege design and manufacturing claims, failure to warn, breach of warranty, fraud, violations of state consumer protection laws and loss of consortium claims. In fiscal year 2016, Bard paid the Company $121 million towards the settlement of 11,000 of these claims. In May 2017, the agreement with Bard was amended to extend the terms to apply to up to an additional 5,000 claims. That agreement does not resolve the dispute between the Company and Bard with respect to claims that do not settle, if any. As part of the agreement, the Company and Bard agreed to dismiss without prejudice their pending litigation with respect to Bard’s obligation to defend and indemnify the Company. The Company estimates law firms representing approximately 15,800 claimants have asserted or may assert claims involving products manufactured by Covidien’s subsidiaries. As of June 1, 2019, the Company had reached agreements to settle approximately 15,400 of these claims. The Company's accrued expenses for this matter are included within accrued litigation as discussed above.

Patent Litigation

Ethicon

On December 14, 2011, Ethicon filed an action against Covidien in the U.S. District Court for the Southern District of Ohio, alleging patent infringement and seeking monetary damages and injunctive relief. On January 22, 2014, the district court entered summary judgment in Covidien's favor, and the majority of this ruling was affirmed by the Federal Circuit on August 7, 2015. Following appeal, the case was remanded back to the District Court with respect to one patent. On January 21, 2016, Covidien filed a second action in the U.S. District Court for the Southern District of Ohio, seeking a declaration of non-infringement with respect to a second set of patents held by Ethicon. The court consolidated this second action with the remaining patent issues from the first action. Following consolidation of the cases, Ethicon dismissed six of the asserted patents, leaving a single asserted patent. In addition to claims of non-infringement, the Company asserts an affirmative defense of invalidity. The Company has not recognized an expense related to damages in connection with this matter, because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company is unable to reasonably estimate the range of loss, if any, that may result from this matter.

Sasso

The Company is involved in litigation in Indiana relating to certain patent and royalty disputes with Dr. Sasso under agreements originally entered into in 1999 and 2001. On November 28, 2018, a jury in Indiana state court returned a verdict against the Company for approximately $112 million. The Company has strong arguments to appeal the verdict and has filed post-trial motions and appeals with the appropriate appellate courts. The Company has not recognized an expense in connection with this matter because it does not currently believe a loss is probable under U.S. GAAP.

Shareholder Related Matters

Covidien Acquisition

On July 2, 2014, Lewis Merenstein filed a putative shareholder class action in Hennepin County, Minnesota, District Court seeking to enjoin the then-potential acquisition of Covidien. The lawsuit named Medtronic, Inc., Covidien, and each member of the Medtronic, Inc. Board of Directors at the time as defendants, and alleged that the directors breached their fiduciary duties to shareholders with regard to the then-potential acquisition. On August 21, 2014, Kenneth Steiner filed a putative shareholder class action in Hennepin County, Minnesota, District Court, also seeking an injunction to prevent the potential Covidien acquisition. In September 2014, the Merenstein and Steiner matters were consolidated and in December 2014, the plaintiffs filed a preliminary injunction motion seeking to enjoin the Covidien transaction. On March 20, 2015, the District Court issued an order and opinion granting Medtronic’s motion to dismiss the case. In May of 2015, the plaintiffs filed an appeal, and, in January of 2016, the Minnesota State Court of Appeals affirmed in part, and reversed in part. On April 19, 2016, the Minnesota Supreme Court granted the Company’s petition to review the issue of whether most of the original claims are properly characterized as direct or derivative under Minnesota law. In August of 2017, the Minnesota Supreme Court affirmed the decision of the Minnesota State Court of Appeals, sending the matter back to the trial court for further proceedings, which are ongoing. The Company has not recognized

an expense related to damages in connection with this matter, because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company is unable to reasonably estimate the range of loss, if any, that may result from these matters.

HeartWare

On January 22, 2016, the St. Paul Teachers’ Retirement Fund Association filed a putative class action complaint (the “Complaint”) in the United States District Court for the Southern District of New York against HeartWare on behalf of all persons and entities who purchased or otherwise acquired shares of HeartWare from June 10, 2014 through January 11, 2016 (the “Class Period”). The Complaint was amended on June 29, 2016 and claims HeartWare and one of its executives violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making false and misleading statements about, among other things, HeartWare’s response to a June 2014 U.S. FDA warning letter, the development of the Miniaturized Ventricular Assist Device (MVAD) System and the proposed acquisition of Valtech Cardio Ltd. The Complaint seeks to recover damages on behalf of all purchasers or acquirers of HeartWare’s stock during the Class Period. In August of 2016, the Company acquired HeartWare. In October of 2018, the parties reached an agreement to settle this matter, and in January 2019, the settlement amount was deposited into a qualified settlement fund to be distributed following final court approval. In the fourth quarter of fiscal year 2019, the court approved the settlement, bringing this matter to a conclusion.

Environmental Proceedings

The Company is involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. These projects relate to a variety of activities, including removal of solvents, metals and other hazardous substances from soil and groundwater. The ultimate cost of site cleanup and timing of future cash flows is difficult to predict given uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods.

The Company is a successor to a company which owned and operated a chemical manufacturing facility in Orrington, Maine from 1967 until 1982, and is responsible for the costs of completing an environmental site investigation as required by the Maine Department of Environmental Protection (MDEP). MDEP served a compliance order on Mallinckrodt LLC and U.S. Surgical Corporation, subsidiaries of Covidien, in December 2008, which included a directive to remove a significant volume of soils at the site. After a hearing on the compliance order before the Maine Board of Environmental Protection (Maine Board) to challenge the terms of the compliance order, the Maine Board modified the MDEP order and issued a final order requiring removal of two landfills, capping of the remaining three landfills, installation of a groundwater extraction system and long-term monitoring of the site and the three remaining landfills.

The Company has proceeded with implementation of the investigation and remediation at the site in accordance with the MDEP order as modified by the Maine Board order.

Since the early 2000s, the Company or its predecessors have also been involved in a lawsuit filed in the U.S. District Court for the District of Maine by the Natural Resources Defense Council and the Maine People’s Alliance. Plaintiffs sought an injunction requiring the Company's predecessor to conduct extensive studies of mercury contamination of the Penobscot River and Bay and options for remediating such contamination, and to perform appropriate remedial activities, if necessary.

Following a trial in March 2002, the Court held that conditions in the Penobscot River and Bay may pose an imminent and substantial endangerment and that the Company’s predecessor was liable for the cost of performing a study of the River and Bay. Following a second trial in June 2014, the Court ordered that further engineering study and engineering design work was needed to determine the nature and extent of remediation in the Penobscot River and Bay. The Court also appointed an engineering firm to conduct such studies and issue a report on potential remediation alternatives. In connection with these proceedings, reports have been produced including a variety of cost estimates for a variety of potential remedial options. A third trial to determine the course of remediation to be pursued is scheduled to occur in November of 2019.

The Company's accrued expenses for environmental proceedings are included within accrued litigation as discussed above.

Government Matters

Since 2017, the Company has been responding to requests from the Department of Justice and U.S. Department of Health and Human Services for information about business practices relating to a neurovascular product developed and first marketed by ev3 and Covidien. The Company has provided information in response to these requests and is cooperating with the inquiry. The Company has not recognized an expense in connection with any ongoing investigation, because any such potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company is unable to reasonably estimate the range of loss, if any, that may result from the ongoing information requests.

Income Taxes

In March 2009, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2005 and 2006. Medtronic, Inc. reached agreement with the IRS on some, but not all matters related to these fiscal years. The remaining unresolved issue for fiscal years 2005 and 2006 relates to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico, which is one of the Company's key manufacturing sites. The U.S. Tax Court reviewed this dispute, and on June 9, 2016, issued its opinion with respect to the allocation of income between the parties for fiscal years 2005 and 2006. The U.S. Tax Court generally rejected the IRS’s position, but also made certain modifications to the Medtronic, Inc. tax returns as filed. On April 21, 2017, the IRS filed their Notice of Appeal to the U.S. Court of Appeals for the 8th Circuit regarding the Tax Court Opinion. Oral argument for the Appeal occurred on March 14, 2018. The 8th Circuit Court of Appeals issued their opinion on August 16, 2018, and remanded the case back to the U.S. Tax Court for additional factual findings.

In October 2011, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2007 and 2008. Medtronic, Inc. reached agreement with the IRS on some, but not all matters related to these fiscal years. The remaining unresolved issue for fiscal years 2007 and 2008 relates to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico for the businesses that are the subject of the U.S. Tax Court Case for fiscal years 2005 and 2006.

In April 2014, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2009, 2010, and 2011. Medtronic, Inc. reached agreement with the IRS on some but not all matters related to these fiscal years. The remaining unresolved issue for fiscal years 2009, 2010, and 2011 relates to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico for the businesses that are the subject of the U.S. Tax Court Case for fiscal years 2005 and 2006.

In May 2017, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2012, 2013, and 2014. Medtronic, Inc. reached agreement with the IRS on some but not all matters related to these fiscal years. The significant issues that remain unresolved relate to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico, and proposed adjustments associated with the utilization of certain net operating losses. The Company disagrees with the IRS and will attempt to resolve these matters at the IRS Appellate level.

Medtronic, Inc.’s fiscal years 2015 and 2016 U.S. federal income tax returns are currently being audited by the IRS.

Covidien and the IRS have concluded and reached agreement on its audit of Covidien’s U.S. federal income tax returns for all tax years through 2012. The statute of limitations for Covidien’s 2013 and 2014 U.S. federal income tax returns lapsed during the first quarter of fiscal years 2018 and 2019, respectively. Covidien's fiscal year 2015 U.S. federal income tax returns are currently being audited by the IRS.

While it is not possible to predict the outcome for most of the income tax matters discussed above, the Company believes it is possible that charges associated with these matters could have a material adverse impact on the Company’s consolidated earnings, financial position, and/or cash flows.

See Note 14 for additional discussion of income taxes.

Guarantees

As a result of the acquisition of Covidien, the Company has a guarantee commitment related to certain contingent tax liabilities as a party to the Tax Sharing Agreement that was entered into on June 29, 2007, between Covidien, Tyco International (now Johnson Controls), and Tyco Electronics (now TE Connectivity), associated with the spin-off from Tyco. The Tax Sharing Agreement covers certain income tax liabilities for periods prior to and including the spin-off. Medtronic’s share of the income tax liabilities for these periods is 42 percent, with Johnson Controls and TE Connectivity share being 27 percent, and 31 percent, respectively. If Johnson Controls and TE Connectivity default on their obligations to the Company under the Tax Sharing Agreement, the Company would be liable for the entire amount of these liabilities. All costs and expenses associated with the management of these tax liabilities are being shared equally among the parties. The most significant amounts at risk under this Tax Sharing Agreement were resolved with the U.S. Tax Court and IRS Appeals resolutions reached in May 2016. However, the Tax Sharing Agreement remains in place with respect to income tax liabilities that are not the subject of such resolution, including certain state and international tax matters that remain open.

The Company has used available information to develop its best estimates for certain assets and liabilities related to periods prior to the 2007 separation, including amounts subject to or impacted by the provisions of the Tax Sharing Agreement. The actual amounts that the Company may be required to ultimately accrue or pay under the Tax Sharing Agreement, however, could vary depending upon the outcome of the unresolved tax matters. Final determination of the balances will be made in subsequent periods,

primarily related to tax years that remain open for examination. These balances will also be impacted by the filing of final or amended income tax returns in certain jurisdictions where those returns include a combination of Tyco International, Covidien and/or Tyco Electronics legal entities for periods prior to the 2007 separation.

As part of the Company’s sale of the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses to Cardinal on July 29, 2017, the Company has indemnified Cardinal for certain contingent tax liabilities related to the divested businesses that existed prior to the date of divestiture. The actual amounts that the Company may be required to ultimately accrue or pay could vary depending upon the outcome of the unresolved tax matters.

In the normal course of business, the Company and/or its affiliates periodically enter into agreements that require one or more of the Company and/or its affiliates to indemnify customers or suppliers for specific risks, such as claims for injury or property damage arising as a result of the Company or its affiliates’ products, the negligence of the Company's personnel, or claims alleging that the Company's products infringe on third-party patents or other intellectual property. The Company also offers warranties on various products. The Company’s maximum exposure under these guarantees is unable to be estimated. Historically, the Company has not experienced significant losses on these types of guarantees.

The Company believes the ultimate resolution of the above guarantees is not expected to have a material effect on the Company’s consolidated earnings, financial position, or cash flows.

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Quarterly Financial Data (unaudited)

12 Months Ended

Apr. 26, 2019

Quarterly Financial Data [Abstract]

Quarterly Financial Data (unaudited)

Quarterly Financial Data (unaudited)

The table below summarizes select unaudited quarterly financial data for fiscal years 2019 and 2018:

	Fiscal Year 2019								Fiscal Year 2018
(in millions, except per share data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Net sales	$	7,384	$	7,481	$	7,546	$	8,146	$	7,390	$	7,050	$	7,369		$	8,144
Gross profit	5,180		5,278		5,281		5,663		5,038		4,927		5,175			5,746
Net income (loss)	1,077		1,120		1,271		1,182		1,009		2,013		(1,392		)	1,465
Net income (loss) attributable to Medtronic	1,075		1,115		1,269		1,172		1,016		2,017		(1,389		)	1,460
Basic earnings (loss) per share	0.79		0.83		0.95		0.87		0.75		1.49		(1.03		)	1.08
Diluted earnings (loss) per share	0.79		0.82		0.94		0.87		0.74		1.48		(1.03		)	1.07

The data in the schedule above has been intentionally rounded to the nearest million, and therefore, the quarterly amounts may not sum to the fiscal year-to-date amounts.

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Segment and Geographic Information

12 Months Ended

Apr. 26, 2019

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

The Company’s organizational structure is based upon four principal operating and reportable segments: the Cardiac and Vascular Group, the Minimally Invasive Therapies Group, the Restorative Therapies Group, and the Diabetes Group. The Company's management has chosen to organize the entity based upon therapy solutions provided by each segment. The four principal segments are strategic businesses that are managed separately, as each one develops and manufactures products and provides services oriented toward targeted therapy solutions.

The primary products and services from which the Cardiac and Vascular Group segment derives its revenues include products for the diagnosis, treatment, and management of cardiac rhythm disorders and cardiovascular disease, as well as services to diagnose, treat, and manage heart- and vascular-related disorders and diseases.

The primary products and services from which the Minimally Invasive Therapies Group segment derives its revenues include those focused on diseases of the respiratory system, gastrointestinal tract, renal system, lungs, pelvic region, kidneys, obesity, and other preventable complications.

The primary products and services from which the Restorative Therapies Group segment derives its revenues include those focused on neurostimulation therapies and drug delivery systems for the treatment of chronic pain, as well as various areas of the spine and brain, along with pelvic health and conditions of the ear, nose, and throat.

The primary products from which the Diabetes Group segment derives its revenues include those focused on diabetes management, including insulin pumps, continuous glucose monitoring systems, insulin pump consumables, and diabetes therapy management software.

Segment disclosures are on a performance basis, consistent with internal management reporting. Net sales of the Company's segments include end-customer revenues from the sale of products the segment develops, manufactures, and distributes. There are certain corporate and centralized expenses that are not allocated to the segments. The Company's management evaluates the performance of the segments and allocates resources based on net sales and segment earnings before interest, taxes, and amortization ("Segment EBITA"). Segment EBITA represents income before income taxes, excluding interest expense, interest income, amortization of intangible assets, centralized distribution costs, certain corporate charges, and other items not allocated to the segments.

The accounting policies of the segments are the same as those described in Note 1. Certain depreciable assets may be recorded by one segment, while the depreciation expense is allocated to another segment. The allocation of depreciation expense is based on the proportion of the assets used by each segment.

The following tables present reconciliations of financial information from the segments to the applicable line items in the Company's consolidated financial statements:

Net Sales

	Fiscal Year
(in millions)	2019		2018		2017
Cardiac and Vascular Group	$	11,505	$	11,354	$	10,498
Minimally Invasive Therapies Group	8,478		8,716		9,919
Restorative Therapies Group	8,183		7,743		7,366
Diabetes Group	2,391		2,140		1,927
Total	$	30,557	$	29,953	$	29,710

Segment EBITA

	Fiscal Year
(in millions)	2019			2018			2017
Cardiac and Vascular Group	$	4,541		$	4,460		$	4,134
Minimally Invasive Therapies Group	3,266			3,346			3,434
Restorative Therapies Group	3,323			3,058			2,868
Diabetes Group	739			634			690
Segment EBITA	11,869			11,498			11,126
Interest expense	(1,444		)	(1,146		)	(1,094		)
Interest income	283			397			366
Amortization of intangible assets	(1,764		)	(1,823		)	(1,980		)
Corporate	(1,253		)	(1,437		)	(1,232		)
Centralized distribution costs	(1,688		)	(1,936		)	(1,543		)
Restructuring and associated costs	(407		)	(107		)	(373		)
Acquisition-related items	(88		)	(132		)	(230		)
Certain litigation charges	(166		)	(61		)	(300		)
Gain/(loss) on minority investments	62			—			—
IPR&D charges	(58		)	(46		)	—
Exit of businesses	(149		)	—			—
Divestiture-related items	—			(115		)	—
Gain on sale of businesses	—			697			—
Contribution to Medtronic Foundation	—			(80		)	(100		)
Hurricane Maria	—			(34		)	—
Impact of inventory step-up	—			—			(38		)
Income before income taxes	$	5,197		$	5,675		$	4,602

Total Assets and Depreciation Expense

	Total Assets				Depreciation Expense
(in millions)	April 26, 2019		April 27, 2018		2019		2018		2017
Cardiac and Vascular Group	$	15,453	$	15,407	$	194	$	183	$	180
Minimally Invasive Therapies Group	41,186		43,002		206		217		358
Restorative Therapies Group	16,825		15,245		217		146		167
Diabetes Group	3,095		2,900		34		29		29
Segments	76,559		76,554		651		575		734
Corporate	13,135		14,839		244		246		203
Total	$	89,694	$	91,393	$	895	$	821	$	937

Geographic Information

Net sales are attributed to the country based on the location of the customer taking possession of the products or in which the services are rendered. Geographic property, plant, and equipment are attributed to the country based on the physical location of the assets.

The following table presents net sales for fiscal years 2019, 2018, and 2017, and property, plant, and equipment, net at April 26, 2019 and April 27, 2018 for the Company's country of domicile, countries with significant concentrations, and all other countries:

	Net sales						Property, plant, and equipment, net
(in millions)	2019		2018		2017		April 26, 2019		April 27, 2018
Ireland	$	91	$	85	$	69	$	156	$	149
United States	16,194		15,875		16,663		3,122		2,927
Rest of world	14,272		13,993		12,978		1,397		1,528
Total other countries, excluding Ireland	30,466		29,868		29,641		4,519		4,455
Total	$	30,557	$	29,953	$	29,710	$	4,675	$	4,604

No single customer represented over 10 percent of the Company’s consolidated net sales in fiscal years 2019, 2018, or 2017.

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Guarantor Financial Information

12 Months Ended

Apr. 26, 2019

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. Medtronic plc and Medtronic, Inc. each have provided a full and unconditional guarantee of the obligations of Medtronic Luxco under the Senior Notes (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 and condensed consolidating statements of cash flows as of and for the fiscal years ended April 26, 2019, April 27, 2018, and April 28, 2017, and condensed consolidating balance sheets at April 26, 2019 and April 27, 2018. 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. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year.

During 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. The reorganization has been reflected as of the beginning of the earliest period presented.

Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 26, 2019

Medtronic Senior Notes and Medtronic Luxco Senior Notes

(in millions)	Medtronic plc			Medtronic, Inc.			Medtronic Luxco			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	1,318		$	—		$	30,558		$	(1,319	)	$	30,557
Costs and expenses:
Cost of products sold	—			1,110			—			8,833			(788		)	9,155
Research and development expense	—			659			—			1,671			—			2,330
Selling, general, and administrative expense	11			1,476			—			8,931			—			10,418
Amortization of intangible assets	—			8			—			1,756			—			1,764
Restructuring charges, net	—			44			—			154			—			198
Certain litigation charges	—			55			—			111			—			166
Other operating expense (income), net	54			(2,426		)	(28		)	3,085			(427		)	258
Operating profit (loss)	(65		)	392			28			6,017			(104		)	6,268
Other non-operating (income) expense, net	—			(507		)	(808		)	(1,890		)	2,832			(373		)
Interest expense	478			2,375			511			912			(2,832		)	1,444
Equity in net (income) loss of subsidiaries	(5,167		)	(3,089		)	(4,842		)	—			13,098			—
Income (loss) before income taxes	4,624			1,613			5,167			6,995			(13,202		)	5,197
Income tax (benefit) provision	(7		)	(246		)	—			800			—			547
Net income (loss)	4,631			1,859			5,167			6,195			(13,202		)	4,650
Net income attributable to noncontrolling interests	—			—			—			(19		)	—			(19		)
Net income (loss) attributable to Medtronic	4,631			1,859			5,167			6,176			(13,202		)	4,631
Other comprehensive income (loss), net of tax	(972		)	(1,049		)	(972		)	(882		)	2,900			(975		)
Comprehensive income attributable to noncontrolling interests	—			—			—			(16		)	—			(16		)
Total comprehensive income (loss) attributable to Medtronic	$	3,659		$	810		$	4,195		$	5,297		$	(10,302	)	$	3,659

Consolidating Statement of Comprehensive Income

Fiscal Year Ended 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
Net sales	$	—		$	1,198		$	—		$	29,952		$	(1,197	)	$	29,953
Costs and expenses:
Cost of products sold	—			971			—			8,884			(788		)	9,067
Research and development expense	—			656			—			1,600			—			2,256
Selling, general, and administrative expense	12			1,416			—			8,810			—			10,238
Amortization of intangible assets	—			8			—			1,815			—			1,823
Restructuring charges, net	—			(7		)	—			37			—			30
Certain litigation charges	—			24			—			37			—			61
Gain on sale of businesses	—			—			—			(697		)	—			(697		)
Other operating expense (income), net	52			(2,265		)	—			3,156			(408		)	535
Operating (loss) profit	(64		)	395			—			6,310			(1		)	6,640
Other non-operating (income) expense, net	—			(192		)	(482		)	(1,527		)	2,020			(181		)
Interest expense	247			1,897			234			788			(2,020		)	1,146
Equity in net (income) loss of subsidiaries	(3,408		)	(940		)	(3,160		)	—			7,508			—
Income (loss) before income taxes	3,097			(370		)	3,408			7,049			(7,509		)	5,675
Income tax (benefit) provision	(7		)	41			—			2,546			—			2,580
Net income (loss)	3,104			(411		)	3,408			4,503			(7,509		)	3,095
Net loss attributable to noncontrolling interests	—			—			—			9			—			9
Net income (loss) attributable to Medtronic	3,104			(411		)	3,408			4,512			(7,509		)	3,104
Other comprehensive income (loss), net of tax	1,030			972			1,030			954			(2,956		)	1,030
Comprehensive loss attributable to noncontrolling interests	—			—			—			9			—			9
Total comprehensive income (loss) attributable to Medtronic	$	4,134		$	561		$	4,438		$	5,466		$	(10,465	)	$	4,134

Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 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	$	—		$	1,199		$	—		$	29,708		$	(1,197	)	$	29,710
Costs and expenses:
Cost of products sold	—			935			—			9,152			(793		)	9,294
Research and development expense	—			636			—			1,557			—			2,193
Selling, general, and administrative expense	12			1,308			—			8,698			—			10,018
Amortization of intangible assets	—			11			—			1,969			—			1,980
Restructuring charges, net	—			54			—			249			—			303
Certain litigation charges	—			—			—			300			—			300
Other operating expense (income), net	18			(2,380		)	—			3,024			(423		)	239
Operating (loss) profit	(30		)	635			—			4,759			19			5,383
Other non-operating (income) expense, net	—			(197		)	(649		)	(1,065		)	1,598			(313		)
Interest expense	113			1,652			62			865			(1,598		)	1,094
Equity in net (income) loss of subsidiaries	(4,163		)	(1,563		)	(3,576		)	—			9,302			—
Income (loss) before income taxes	4,020			743			4,163			4,959			(9,283		)	4,602
Income tax (benefit) provision	(8		)	(124		)	—			710			—			578
Net income (loss)	4,028			867			4,163			4,249			(9,283		)	4,024
Net loss attributable to noncontrolling interests	—			—			—			4			—			4
Net income (loss) attributable to Medtronic	4,028			867			4,163			4,253			(9,283		)	4,028
Other comprehensive (loss) income, net of tax	(745		)	(430		)	(745		)	(928		)	2,104			(744		)
Comprehensive loss attributable to noncontrolling interests	—			—			—			3			—			3
Total comprehensive income (loss) attributable to Medtronic	$	3,283		$	437		$	3,418		$	3,324		$	(7,179	)	$	3,283

Condensed Consolidating Balance Sheet

April 26, 2019

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	$	—	$	18	$	1	$	4,374	$	—		$	4,393
Investments	—		—		—		5,455		—			5,455
Accounts receivable, net	—		—		—		6,222		—			6,222
Inventories, net	—		188		—		3,792		(227		)	3,753
Intercompany receivable	40		9,407		6		19,170		(28,623		)	—
Other current assets	10		190		3		1,941		—			2,144
Total current assets	50		9,803		10		40,954		(28,850		)	21,967
Property, plant and equipment, net	—		1,480		—		3,195		—			4,675
Goodwill	—		2,009		—		37,950		—			39,959
Other intangible assets, net	—		99		—		20,461		—			20,560
Tax assets	—		568		—		951		—			1,519
Investment in subsidiaries	64,352		71,284		65,012		—		(200,648		)	—
Intercompany loans receivable	3,000		21		27,858		35,398		(66,277		)	—
Other assets	—		216		—		798		—			1,014
Total assets	$	67,402	$	85,480	$	92,880	$	139,707	$	(295,775	)	$	89,694
LIABILITIES AND EQUITY
Current liabilities:
Current debt obligations	$	—	$	500	$	—	$	338	$	—		$	838
Accounts payable	—		481		—		1,472		—			1,953
Intercompany payable	—		11,971		7,200		9,452		(28,623		)	—
Accrued compensation	3		913		—		1,273		—			2,189
Accrued income taxes	—		—		—		567		—			567
Other accrued expenses	20		331		53		2,521		—			2,925
Total current liabilities	23		14,196		7,253		15,623		(28,623		)	8,472
Long-term debt	—		14,418		8,621		1,447		—			24,486
Accrued compensation and retirement benefits	—		1,069		—		582		—			1,651
Accrued income taxes	10		692		—		2,136		—			2,838
Intercompany loans payable	17,278		12,613		19,682		16,704		(66,277		)	—
Deferred tax liabilities	—		—		—		1,278		—			1,278
Other liabilities	—		133		—		624		—			757
Total liabilities	17,311		43,121		35,556		38,394		(94,900		)	39,482
Shareholders’ equity	50,091		42,359		57,324		101,192		(200,875		)	50,091
Noncontrolling interests	—		—		—		121		—			121
Total equity	50,091		42,359		57,324		101,313		(200,875		)	50,212
Total liabilities and equity	$	67,402	$	85,480	$	92,880	$	139,707	$	(295,775	)	$	89,694

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		73,495		61,461		—		(195,337		)	—
Intercompany loans receivable	3,000		6,519		19,337		34,196		(63,052		)	—
Other assets	—		223		—		855		—			1,078
Total assets	$	63,424	$	107,862	$	80,799	$	155,268	$	(315,960	)	$	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		41,496		53,378		100,588		(195,462		)	50,720
Noncontrolling interests	—		—		—		102		—			102
Total equity	50,720		41,496		53,378		100,690		(195,462		)	50,822
Total liabilities and equity	$	63,424	$	107,862	$	80,799	$	155,268	$	(315,960	)	$	91,393

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 26, 2019

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 operating activities	$	(7	)	$	4,944		$	298		$	7,691		$	(5,919	)	$	7,007
Investing Activities:
Acquisitions, net of cash acquired	—			(237		)	—			(1,590		)	—			(1,827		)
Additions to property, plant, and equipment	—			(313		)	—			(821		)	—			(1,134		)
Purchases of investments	—			—			—			(2,532		)	—			(2,532		)
Sales and maturities of investments	—			76			—			4,607			—			4,683
Capital contributions paid	(18		)	(97		)	—			—			115			—
Other investing activities, net	—			—			82			(46		)	—			36
Net cash (used in) provided by investing activities	(18		)	(571		)	82			(382		)	115			(774		)
Financing Activities:
Change in current debt obligations, net	—			—			(1,696		)	983			—			(713		)
Issuance of long-term debt	—			—			7,791			3			—			7,794
Payments on long-term debt	—			(6,182		)	—			(1,766		)	—			(7,948		)
Dividends to shareholders	(2,693		)	—			—			—			—			(2,693		)
Issuance of ordinary shares	992			—			—			—			—			992
Repurchase of ordinary shares	(2,877		)	—			—			—			—			(2,877		)
Net intercompany loan borrowings (repayments)	4,603			1,807			(6,518		)	108			—			—
Intercompany dividends paid	—			—			—			(5,919		)	5,919			—
Capital contributions received	—			—			—			115			(115		)	—
Other financing activities	—			—			43			(29		)	—			14
Net cash (used in) provided by financing activities	25			(4,375		)	(380		)	(6,505		)	5,804			(5,431		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(78		)	—			(78		)
Net change in cash and cash equivalents	—			(2		)	—			726			—			724
Cash and cash equivalents at beginning of period	—			20			1			3,648			—			3,669
Cash and cash equivalents at end of period	$	—		$	18		$	1		$	4,374		$	—		$	4,393

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended 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
Operating Activities:
Net cash provided by operating activities	$	155		$	(1,567	)	$	249		$	16,419		$	(10,572	)	$	4,684
Investing Activities:
Acquisitions, net of cash acquired	—			—			—			(137		)	—			(137		)
Proceeds from sale of businesses	—			—			—			6,058			—			6,058
Additions to property, plant, and equipment	—			(340		)	—			(728		)	—			(1,068		)
Purchases of investments	—			(98		)	(25		)	(3,124		)	47			(3,200		)
Sales and maturities of investments	—			25			—			4,249			(47		)	4,227
Capital contributions paid	—			(59		)	(4,200		)	—			4,259			—
Other investing activities, net	—			—			—			(22		)	—			(22		)
Net cash (used in) provided by investing activities	—			(472		)	(4,225		)	6,296			4,259			5,858
Financing Activities:
Change in current debt obligations, net	—			—			(205		)	(44		)	—			(249		)
Issuance of long-term debt	—			—			—			21			—			21
Payments on long-term debt	—			(6,166		)	—			(1,204		)	—			(7,370		)
Dividends to shareholders	(2,494		)	—			—			—			—			(2,494		)
Issuance of ordinary shares	403			—			—			—			—			403
Repurchase of ordinary shares	(2,171		)	—			—			—			—			(2,171		)
Net intercompany loan borrowings (repayments)	4,107			8,180			4,177			(16,464		)	—			—
Intercompany dividends paid	—			—			—			(10,572		)	10,572			—
Capital contributions received	—			—			—			4,259			(4,259		)	—
Other financing activities	—			—			—			(94		)	—			(94		)
Net cash (used in) provided by financing activities	(155		)	2,014			3,972			(24,098		)	6,313			(11,954		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			114			—			114
Net change in cash and cash equivalents	—			(25		)	(4		)	(1,269		)	—			(1,298		)
Cash and cash equivalents at beginning of period	—			45			5			4,917			—			4,967
Cash and cash equivalents at end of period	$	—		$	20		$	1		$	3,648		$	—		$	3,669

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 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 operating activities	$	842		$	1,902		$	302		$	4,721		$	(887	)	$	6,880
Investing Activities:
Acquisitions, net of cash acquired	—			(940		)	—			(384		)	—			(1,324		)
Additions to property, plant, and equipment	—			(369		)	—			(885		)	—			(1,254		)
Purchases of investments	—			—			—			(4,533		)	162			(4,371		)
Sales and maturities of investments	—			210			—			5,308			(162		)	5,356
Capital contributions paid	—			(248		)	—			—			248			—
Other investing activities, net	—			—			—			22			—			22
Net cash (used in) provided by investing activities	—			(1,347		)	—			(472		)	248			(1,571		)
Financing Activities:
Change in current debt obligations, net	—			—			901			5			—			906
Issuance of long-term debt	—			150			1,850			140			—			2,140
Payments on long-term debt	—			(500		)	—			(363		)	—			(863		)
Dividends to shareholders	(2,376		)	—			—			—			—			(2,376		)
Issuance of ordinary shares	428			—			—			—			—			428
Repurchase of ordinary shares	(3,544		)	—			—			—			—			(3,544		)
Net intercompany loan borrowings (repayments)	4,650			(255		)	(3,048		)	(1,347		)	—			—
Intercompany dividends paid	—			—			—			(887		)	887			—
Capital contributions received	—			—			—			248			(248		)	—
Other financing activities	—			40			—			(14		)	—			26
Net cash (used in) provided by financing activities	(842		)	(565		)	(297		)	(2,218		)	639			(3,283		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			65			—			65
Net change in cash and cash equivalents	—			(10		)	5			2,096			—			2,091
Cash and cash equivalents at beginning of period	—			55			—			2,821			—			2,876
Cash and cash equivalents at end of period	$	—		$	45		$	5		$	4,917		$	—		$	4,967

Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 26, 2019

CIFSA Senior Notes

(in millions)	Medtronic plc			CIFSA			CIFSA Subsidiary Guarantors			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	—		$	—		$	30,557		$	—		$	30,557
Costs and expenses:
Cost of products sold	—			—			—			9,155			—			9,155
Research and development expense	—			—			—			2,330			—			2,330
Selling, general, and administrative expense	11			1			4			10,402			—			10,418
Amortization of intangible assets	—			—			—			1,764			—			1,764
Restructuring charges, net	—			—			—			198			—			198
Certain litigation charges	—			—			—			166			—			166
Other operating expense (income), net	54			1			(27		)	230			—			258
Operating (loss) profit	(65		)	(2		)	23			6,312			—			6,268
Other non-operating (income) expense, net	—			(44		)	(836		)	(830		)	1,337			(373		)
Interest expense	478			99			511			1,693			(1,337		)	1,444
Equity in net (income) loss of subsidiaries	(5,167		)	(3,144		)	(4,819		)	—			13,130			—
Income (loss) before income taxes	4,624			3,087			5,167			5,449			(13,130		)	5,197
Income tax (benefit) provision	(7		)	—			—			554			—			547
Net income (loss)	4,631			3,087			5,167			4,895			(13,130		)	4,650
Net income attributable to noncontrolling interests	—			—			—			(19		)	—			(19		)
Net income (loss) attributable to Medtronic	4,631			3,087			5,167			4,876			(13,130		)	4,631
Other comprehensive income (loss), net of tax	(972		)	7			(972		)	(1,060		)	2,022			(975		)
Comprehensive income attributable to noncontrolling interests	—			—			—			(16		)	—			(16		)
Total comprehensive income (loss) attributable to Medtronic	$	3,659		$	3,094		$	4,195		$	3,819		$	(11,108	)	$	3,659

Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 27, 2018

CIFSA Senior Notes

(in millions)	Medtronic plc			CIFSA			CIFSA Subsidiary Guarantors			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	—		$	—		$	29,953		$	—		$	29,953
Costs and expenses:
Cost of products sold	—			—			—			9,067			—			9,067
Research and development expense	—			—			—			2,256			—			2,256
Selling, general, and administrative expense	12			1			2			10,223			—			10,238
Amortization of intangible assets	—			—			—			1,823			—			1,823
Restructuring charges, net	—			—			—			30			—			30
Certain litigation charges	—			—			—			61			—			61
Gain on sale of businesses	—			—			—			(697		)	—			(697		)
Other operating expense, net	52			1			—			482			—			535
Operating (loss) profit	(64		)	(2		)	(2		)	6,708			—			6,640
Other non-operating (income) expense, net	—			(60		)	(498		)	(346		)	723			(181		)
Interest expense	247			83			234			1,305			(723		)	1,146
Equity in net (income) loss of subsidiaries	(3,408		)	(4,105		)	(3,146		)	—			10,659			—
Income (loss) before income taxes	3,097			4,080			3,408			5,749			(10,659		)	5,675
Income tax (benefit) provision	(7		)	—			—			2,587			—			2,580
Net income (loss)	3,104			4,080			3,408			3,162			(10,659		)	3,095
Net loss attributable to noncontrolling interests	—			—			—			9			—			9
Net (income) loss attributable to Medtronic	3,104			4,080			3,408			3,171			(10,659		)	3,104
Other comprehensive income (loss), net of tax	1,030			43			1,030			1,030			(2,103		)	1,030
Comprehensive loss attributable to noncontrolling interests	—			—			—			9			—			9
Total comprehensive income (loss) attributable to Medtronic	$	4,134		$	4,123		$	4,438		$	4,201		$	(12,762	)	$	4,134

Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 28, 2017

CIFSA Senior Notes

(in millions)	Medtronic plc			CIFSA			CIFSA Subsidiary Guarantors			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	—		$	—		$	29,710		$	—		$	29,710
Costs and expenses:
Cost of products sold	—			—			—			9,294			—			9,294
Research and development expense	—			—			—			2,193			—			2,193
Selling, general, and administrative expense	12			1			2			10,003			—			10,018
Amortization of intangible assets	—			—			—			1,980			—			1,980
Restructuring charges, net	—			—			—			303			—			303
Certain litigation charges	—			—			—			300			—			300
Other operating expense, net	18			1			4			216			—			239
Operating (loss) profit	(30		)	(2		)	(6		)	5,421			—			5,383
Other non-operating (income) expense, net	—			(82		)	(656		)	(380		)	805			(313		)
Interest expense	113			104			62			1,620			(805		)	1,094
Equity in net (income) loss of subsidiaries	(4,163		)	(3,736		)	(3,575		)	—			11,474			—
Income (loss) before income taxes	4,020			3,712			4,163			4,181			(11,474		)	4,602
Income tax (benefit) provision	(8		)	—			—			586			—			578
Net income (loss)	4,028			3,712			4,163			3,595			(11,474		)	4,024
Net loss attributable to noncontrolling interests	—			—			—			4			—			4
Net income (loss) attributable to Medtronic	4,028			3,712			4,163			3,599			(11,474		)	4,028
Other comprehensive (loss) income, net of tax	(745		)	(234		)	(745		)	(744		)	1,724			(744		)
Comprehensive loss attributable to noncontrolling interests	—			—			—			3			—			3
Total comprehensive income (loss) attributable to Medtronic	$	3,283		$	3,478		$	3,418		$	2,854		$	(9,750	)	$	3,283

Condensed Consolidating Balance Sheet

April 26, 2019

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	$	4,392	$	—		$	4,393
Investments	—		—		—		5,455		—			5,455
Accounts receivable, net	—		—		—		6,222		—			6,222
Inventories, net	—		—		—		3,753		—			3,753
Intercompany receivable	40		—		1,374		7,212		(8,626		)	—
Other current assets	10		—		3		2,131		—			2,144
Total current assets	50		—		1,378		29,165		(8,626		)	21,967
Property, plant and equipment, net	—		—		—		4,675		—			4,675
Goodwill	—		—		—		39,959		—			39,959
Other intangible assets, net	—		—		—		20,560		—			20,560
Tax assets	—		—		—		1,519		—			1,519
Investment in subsidiaries	64,352		39,402		63,651		—		(167,405		)	—
Intercompany loans receivable	3,000		4,119		27,858		29,002		(63,979		)	—
Other assets	—		—		—		1,014		—			1,014
Total assets	$	67,402	$	43,521	$	92,887	$	125,894	$	(240,010	)	$	89,694
LIABILITIES AND EQUITY
Current liabilities:
Current debt obligations	$	—	$	—	$	—	$	838	$	—		$	838
Accounts payable	—		—		—		1,953		—			1,953
Intercompany payable	—		1,308		7,199		119		(8,626		)	—
Accrued compensation	3		—		—		2,186		—			2,189
Accrued income taxes	—		—		—		567		—			567
Other accrued expenses	20		11		60		2,834		—			2,925
Total current liabilities	23		1,319		7,259		8,497		(8,626		)	8,472
Long-term debt	—		1,354		8,621		14,511		—			24,486
Accrued compensation and retirement benefits	—		—		—		1,651		—			1,651
Accrued income taxes	10		—		—		2,828		—			2,838
Intercompany loans payable	17,278		9,320		19,682		17,699		(63,979		)	—
Deferred tax liabilities	—		—		—		1,278		—			1,278
Other liabilities	—		—		1		756		—			757
Total liabilities	17,311		11,993		35,563		47,220		(72,605		)	39,482
Shareholders’ equity	50,091		31,528		57,324		78,553		(167,405		)	50,091
Noncontrolling interests	—		—		—		121		—			121
Total equity	50,091		31,528		57,324		78,674		(167,405		)	50,212
Total liabilities and equity	$	67,402	$	43,521	$	92,887	$	125,894	$	(240,010	)	$	89,694

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		31,239		60,122		—		(151,742		)	—
Intercompany loans receivable	3,000		1,291		19,337		19,436		(43,064		)	—
Other assets	—		—		—		1,078		—			1,078
Total assets	$	63,424	$	32,530	$	80,803	$	116,382	$	(201,746	)	$	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		29,015		53,378		69,349		(151,742		)	50,720
Noncontrolling interests	—		—		—		102		—			102
Total equity	50,720		29,015		53,378		69,451		(151,742		)	50,822
Total liabilities and equity	$	63,424	$	32,530	$	80,803	$	116,382	$	(201,746	)	$	91,393

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 26, 2019

CIFSA Senior Notes

(in millions)	Medtronic plc			CIFSA			CIFSA Subsidiary Guarantors			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Operating Activities:
Net cash provided by operating activities	$	(7	)	$	661		$	323		$	6,780		$	(750	)	$	7,007
Investing Activities:
Acquisitions, net of cash acquired	—			—			—			(1,827		)	—			(1,827		)
Additions to property, plant, and equipment	—			—			—			(1,134		)	—			(1,134		)
Purchases of investments	—			—			—			(2,532		)	—			(2,532		)
Sales and maturities of investments	—			—			—			4,683			—			4,683
Capital contributions paid	(18		)	(6,346		)	—			—			6,364			—
Other investing activities, net	—			—			82			(46		)	—			36
Net cash (used in) provided by investing activities	(18		)	(6,346		)	82			(856		)	6,364			(774		)
Financing Activities:
Change in current debt obligations, net	—			—			(1,696		)	983			—			(713		)
Issuance of long-term debt	—			—			7,791			3			—			7,794
Payments on long-term debt	—			(732		)	—			(7,216		)	—			(7,948		)
Dividends to shareholders	(2,693		)	—			—			—			—			(2,693		)
Issuance of ordinary shares	992			—			—			—			—			992
Repurchase of ordinary shares	(2,877		)	—			—			—			—			(2,877		)
Net intercompany loan borrowings (repayments)	4,603			6,417			(6,543		)	(4,477		)	—			—
Intercompany dividend paid	—			—			—			(750		)	750			—
Capital contributions received	—			—			—			6,364			(6,364		)	—
Other financing activities	—			—			43			(29		)	—			14
Net cash (used in) provided by financing activities	25			5,685			(405		)	(5,122		)	(5,614		)	(5,431		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(78		)	—			(78		)
Net change in cash and cash equivalents	—			—			—			724			—			724
Cash and cash equivalents at beginning of period	—			—			1			3,668			—			3,669
Cash and cash equivalents at end of period	$	—		$	—		$	1		$	4,392		$	—		$	4,393

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 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 operating activities	$	155		$	974		$	264		$	4,339		$	(1,048	)	$	4,684
Investing Activities:
Acquisitions, net of cash acquired	—			—			—			(137		)	—			(137		)
Proceeds from sale of businesses	—			—			—			6,058			—			6,058
Additions to property, plant, and equipment	—			—			—			(1,068		)	—			(1,068		)
Purchases of investments	—			—			(25		)	(3,200		)	25			(3,200		)
Sales and maturities of investments	—			—			—			4,252			(25		)	4,227
Capital contributions paid	—			(1,557		)	(4,200		)	—			5,757			—
Other investing activities, net	—			—			—			(22		)	—			(22		)
Net cash (used in) provided by investing activities	—			(1,557		)	(4,225		)	5,883			5,757			5,858
Financing Activities:
Change in current debt obligations, net	—			—			(205		)	(44		)	—			(249		)
Issuance of long-term debt	—			—			—			21			—			21
Payments on long-term debt	—			(1,150		)	—			(6,220		)	—			(7,370		)
Dividends to shareholders	(2,494		)	—			—			—			—			(2,494		)
Issuance of ordinary shares	403			—			—			—			—			403
Repurchase of ordinary shares	(2,171		)	—			—			—			—			(2,171		)
Net intercompany loan borrowings (repayments)	4,107			1,700			4,162			(9,969		)	—			—
Intercompany dividend paid	—			—			—			(1,048		)	1,048			—
Capital contributions received	—			—			—			5,757			(5,757		)	—
Other financing activities	—			—			—			(94		)	—			(94		)
Net cash (used in) provided by financing activities	(155		)	550			3,957			(11,597		)	(4,709		)	(11,954		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			114			—			114
Net change in cash and cash equivalents	—			(33		)	(4		)	(1,261		)	—			(1,298		)
Cash and cash equivalents at beginning of period	—			33			5			4,929			—			4,967
Cash and cash equivalents at end of period	$	—		$	—		$	1		$	3,668		$	—		$	3,669

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 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 operating activities	$	842		$	1,904		$	302		$	5,829		$	(1,997	)	$	6,880
Investing Activities:
Acquisitions, net of cash acquired	—			—			—			(1,324		)	—			(1,324		)
Additions to property, plant, and equipment	—			—			—			(1,254		)	—			(1,254		)
Purchases of investments	—			—			—			(4,371		)	—			(4,371		)
Sales and maturities of investments	—			—			—			5,356			—			5,356
Capital contributions paid	—			(537		)	—			—			537			—
Other investing activities, net	—			—			—			22			—			22
Net cash (used in) provided by investing activities	—			(537		)	—			(1,571		)	537			(1,571		)
Financing Activities:
Change in current debt obligations, net	—			—			901			5			—			906
Issuance of long-term debt	—			—			1,850			290			—			2,140
Payments on long-term debt	—			—			—			(863		)	—			(863		)
Dividends to shareholders	(2,376		)	—			—			—			—			(2,376		)
Issuance of ordinary shares	428			—			—			—			—			428
Repurchase of ordinary shares	(3,544		)	—			—			—			—			(3,544		)
Net intercompany loan borrowings (repayments)	4,650			(1,542		)	(3,048		)	(60		)	—			—
Intercompany dividend paid	—			—			—			(1,997		)	1,997			—
Capital contributions received	—			—			—			537			(537		)	—
Other financing activities	—			—			—			26			—			26
Net cash (used in) provided by financing activities	(842		)	(1,542		)	(297		)	(2,062		)	1,460			(3,283		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			65			—			65
Net change in cash and cash equivalents	—			(175		)	5			2,261			—			2,091
Cash and cash equivalents at beginning of period	—			208			—			2,668			—			2,876
Cash and cash equivalents at end of period	$	—		$	33		$	5		$	4,929		$	—		$	4,967

XML

Schedule II

12 Months Ended

Apr. 26, 2019

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

MEDTRONIC PLC AND SUBSIDIARIES

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS

(in millions)

			Additions						Deductions
	Balance at Beginning of Fiscal Year		Charges to Income		Charges to Other Accounts				Other Changes (Debit) Credit				Balance at End of Fiscal Year
Allowance for doubtful accounts:
Fiscal year ended April 26, 2019	$	193	$	78	$	—			$	(81	)	(a)	$	190
Fiscal year ended April 27, 2018	155		52		—				(14		)	(a)	193
Fiscal year ended April 28, 2017	161		39		—				(45		)	(a)	155
Inventory reserve:
Fiscal year ended April 26, 2019	$	452	$	224	$	—			$	(155	)	(b)	$	521
Fiscal year ended April 27, 2018	443		170		—				(161		)	(b)	452
Fiscal year ended April 28, 2017	426		155		28				(166		)	(b)	443
Deferred tax valuation allowance:
Fiscal year ended April 26, 2019	$	7,166	$	378	$	(11	)	(c)	$	(770	)	(d)	$	6,300
									(463		)	(e)
Fiscal year ended April 27, 2018	6,311		434		21			(c)	(171		)	(d)	7,166
									571			(e)
Fiscal year ended April 28, 2017	7,032		101		6			(c)	(524		)	(d)	6,311
									(304		)	(e)

(a) Primarily consists of uncollectible accounts written off, less recoveries.

(b) Primarily reflects utilization of the inventory reserve.

(c) Reflects the impact from acquisitions.

(d) Reflects carryover attribute utilization and expiration.

(e) Primarily reflects the effects of currency fluctuations.

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Apr. 26, 2019

Accounting Policies [Abstract]

Principles of Consolidation

The consolidated financial statements include the accounts of Medtronic plc, its wholly-owned subsidiaries, entities for which the Company has a controlling financial interest, and variable interest entities for which the Company is the primary beneficiary. Intercompany transactions and balances have been fully eliminated in consolidation.

Reclassifications

Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. For the purpose of providing more concise consolidated statements of income, amounts previously reported in acquisition-related items were reclassified to selling, general, and administrative expense and other operating expense, net; amounts previously reported in divestiture-related items were reclassified to selling, general, and administrative expense; amounts previously reported in special charge were reclassified to other operating expense, net, and amounts previously reported in investment loss and interest income were reclassified to other non-operating income, net.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States (U.S.) (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used when accounting for items such as income taxes, contingencies, intangible asset, and liability valuations. Actual results may or may not differ from those estimates.

Fiscal Year-End

The Company utilizes a 52/53-week fiscal year, ending the last Friday in April, for the presentation of its consolidated financial statements and related notes thereto at April 26, 2019 and April 27, 2018 and for each of the three fiscal years ended April 26, 2019 (fiscal year 2019), April 27, 2018 (fiscal year 2018), and April 28, 2017 (fiscal year 2017). Fiscal years 2019, 2018, 2017 were 52-week years.

Cash Equivalents

The Company considers highly liquid investments with maturities of three months or less from the date of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value.

Investments

The Company invests in marketable debt and equity securities, investments that do not have readily determinable fair values, and investments accounted for under the equity method.

Marketable debt securities are classified and accounted for as available-for-sale. These investments are recorded at fair value in the consolidated balance sheets. The change in fair value for available-for-sale securities is recorded, net of taxes, as a component of accumulated other comprehensive loss on the consolidated balance sheets. The Company determines the appropriate classification of its investments in marketable debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. The classification of marketable debt securities as current or long-term is based on the nature of the securities and the availability for use in current operations consistent with the Company's management of its capital structure and liquidity.

Certain of the Company’s investments in marketable equity securities and other securities are long-term, strategic investments in companies that are in various stages of development and are included in other assets on the consolidated balance sheets. Marketable equity securities are recorded at fair value in the consolidated balance sheets. The change in fair value of marketable equity securities is recognized within other non-operating income, net in the consolidated statements of income. Investments without readily determinable fair values that do not qualify for the practical expedient to estimate fair value using the net asset value per share or its equivalent are accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investments of the issuer. This election is made for each investment separately and is reassessed at each reporting period as to whether the investment continues to qualify for this election. At each reporting period, the Company makes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. Equity securities accounted for under the equity method are initially recorded at the amount of the Company’s investment and are adjusted each period for the Company’s share of the investee’s income or loss and dividends paid. Securities accounted for under the equity method are reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company’s investment may not be recoverable.

Accounts Receivable and Allowance for Doubtful Accounts

The Company grants credit to customers in the normal course of business and maintains an allowance for doubtful accounts for potential credit losses. When evaluating allowances for doubtful accounts, the Company considers various factors, including historical experience and customer-specific information. Uncollectible accounts are written-off against the allowance when it is deemed that a customer account is uncollectible.

Inventories

Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. The Company reduces the carrying value of inventories for items that are potentially excess, obsolete, or slow-moving based on changes in customer demand, technology developments, or other economic factors.

Property, Plant, and Equipment

Property, plant, and equipment is stated at cost. Additions and improvements that extend the lives of the assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred. The Company assesses property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of property, plant, and equipment asset groupings may not be recoverable. The Company utilizes the straight-line method of depreciation over the estimated useful lives of the various assets. The cost of interest that is incurred in connection with ongoing construction projects is capitalized using a weighted average interest rate. These costs are included in property, plant, and equipment and amortized over the useful life of the related asset. Upon retirement or disposal of property, plant, and equipment, the costs and related amounts of accumulated depreciation or amortization are eliminated from the asset and accumulated depreciation accounts. The difference, if any, between the net asset value and the proceeds, is recognized in earnings.

Goodwill

Goodwill is the excess of the purchase price over the estimated fair value of net assets of acquired businesses. In accordance with U.S. GAAP, goodwill is not amortized. The Company assesses goodwill for impairment annually in the third quarter of the fiscal year and whenever an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is performed at a reporting unit level. There were no changes in reporting units during fiscal year 2019. The test for impairment of goodwill requires the Company to make several estimates about fair value, most of which are based on projected future cash flows. The Company calculates the excess of each reporting unit's fair value over its carrying amount, including goodwill, utilizing a discounted cash flow analysis. An impairment loss is recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair value of the reporting unit.

Intangible Assets

Intangible assets include patents, trademarks, tradenames, customer relationships, purchased technology, and in-process research and development (IPR&D). Intangible assets with a definite life are amortized on a straight-line basis with estimated useful lives typically ranging from three to 20 years. Amortization is recognized within amortization of intangible assets in the consolidated statements of income. Intangible assets with a definite life are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset (asset group) may not be recoverable. When events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable, the Company calculates the excess of an intangible asset's carrying value over its undiscounted future cash flows. If the carrying value is not recoverable, an impairment loss is recognized based on the amount by which the carrying value exceeds the fair value. The inputs used in the fair value analysis fall within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs to determine fair value.

IPR&D

Acquired IPR&D represents the fair value assigned to those research and development projects that were acquired in a business combination for which the related products have not received regulatory approval and have no alternative future use. IPR&D is capitalized at its fair value as an indefinite-lived intangible asset, and any development costs incurred after the acquisition are expensed as incurred. The fair value of IPR&D is determined by estimating the future cash flows of each project and discounting the net cash flows back to their present values. Upon achieving regulatory approval or commercial viability for the related product, the indefinite-lived intangible asset is accounted for as a definite-lived asset and is amortized on a straight-line basis over the estimated useful life. If the project is not completed or is terminated or abandoned, the Company may have an impairment related to the IPR&D which is charged to expense. Indefinite-lived intangible assets are tested for impairment annually in the third quarter of the fiscal year and whenever events or changes in circumstances indicate that the carrying amount may be impaired. Impairment is calculated as the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted future cash flow analysis. IPR&D acquired outside of a business combination is expensed immediately.

Contingent Consideration

Certain of the Company’s business combinations involve potential payment of future consideration that is contingent upon the achievement of certain product development milestones and/or contingent on the acquired business reaching certain performance milestones. The Company records contingent consideration at fair value at the date of acquisition based on the consideration expected to be transferred, estimated as the probability-weighted future cash flows, discounted back to present value. The fair value of contingent consideration is measured using projected payment dates, discount rates, probabilities of payment, and projected revenues (for revenue-based considerations). Projected revenues are based on the Company’s most recent internal operational budgets and long-range strategic plans. The discount rate used is determined at the time of measurement in accordance with accepted valuation methodologies. Changes in projected revenues, probabilities of payment, discount rates, and projected payment dates may result in adjustments to the fair value measurements. Contingent consideration is remeasured each reporting period using Level 3 inputs, and the change in fair value, including accretion for the passage of time, is recognized as income or expense within other operating expense, net in the consolidated statements of income. Contingent consideration payments made soon after the acquisition date are classified as investing activities in the consolidated statements of cash flows. Contingent consideration payments not made soon after the acquisition date that are related to the acquisition date fair value are

reported as financing activities in the consolidated statements of cash flows, and amounts paid in excess of the original acquisition date fair value are reported as operating activities in the consolidated statements of cash flows.

Self-Insurance

The Company self-insures the majority of its insurable risks, including medical and dental costs, disability coverage, physical loss to property, business interruptions, workers’ compensation, comprehensive general, and product liability. Insurance coverage is obtained for risks required to be insured by law or contract. The Company uses claims data and historical experience, as applicable, to estimate liabilities associated with the exposures that the Company has self-insured.

Retirement Benefit Plan Assumptions

The Company sponsors various retirement benefit plans, including defined benefit pension plans, post-retirement medical plans, defined contribution savings plans, and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. See Note 16 for assumptions used in determining pension and post-retirement benefit costs and liabilities.

Derivatives

The Company recognizes all derivative financial instruments in its consolidated financial statements at fair value in accordance with authoritative guidance on derivatives and hedging, and presents assets and liabilities associated with derivative financial instruments on a gross basis in the consolidated financial statements. For derivative instruments that are designated and qualify as hedging instruments, the hedging instrument must be designated, based upon the exposure being hedged, as a fair value hedge or a cash flow hedge. See Note 8 for more information on the Company's derivative instruments and hedging programs.

Fair Value Measurements

The Company follows the authoritative guidance on fair value measurements and disclosures with respect to assets and liabilities that are measured at fair value on both a recurring and nonrecurring basis. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability, based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and financial liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels defined as follows:

• Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities.

• Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.

• Level 3 - Inputs are unobservable for the asset or liability.

Financial assets that are classified as Level 1 securities include highly liquid government bonds within U.S. government and agency securities and marketable equity securities for which quoted market prices are available. In addition, the Company classifies currency forward contracts as Level 1 since they are valued using quoted market prices in active markets which have identical assets or liabilities.

The valuation for most fixed maturity securities are classified as Level 2. Financial assets that are classified as Level 2 include corporate debt securities, government and agency securities, other asset-backed securities, debt funds, and mortgage-backed securities whose value is determined using inputs that are observable in the market or may be derived principally from, or corroborated by, observable market data such as pricing for similar securities, recently executed transactions, cash flow models with yield curves, and benchmark securities. In addition, interest rate swaps and total return swaps are included in Level 2 as the Company uses inputs other than quoted prices that are observable for the asset. The Level 2 derivative instruments are primarily valued using standard calculations and models that use readily observable market data as their basis.

Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies, or similar techniques, and at least one significant model assumption or input is unobservable. Financial assets that are classified as Level 3 include certain investment securities for which there is limited market activity such that the determination of fair value requires significant judgment or estimation, certain corporate debt securities and auction rate securities. With the exception of auction rate securities, these securities are valued using third-party pricing sources that incorporate transaction details such as contractual terms, maturity, timing, and amount of expected future cash flows, as well as assumptions about liquidity and credit valuation adjustments by market participants. The fair value of auction rate securities is estimated by the Company using a discounted cash flow model, which incorporates significant unobservable inputs. The significant unobservable inputs used in the

fair value measurement of the Company’s auction rate securities are years to principal recovery and the illiquidity premium that is incorporated into the discount rate.

Certain investments for which the fair value is measured using the net asset value per share (or its equivalent) practical expedient are excluded from the fair value hierarchy. Financial assets for which the fair value is measured using the net asset value per share practical expedient include certain debt funds, equity and fixed income commingled trusts, and registered investment companies.

Revenue Recognition and Shipping and Handling

Shipping and handling costs incurred to physically move product from the Company's premises to the customer's premises are recognized in selling, general, and administrative expense in the consolidated statements of income and were $350 million, $363 million, and $370 million in fiscal years 2019, 2018, and 2017, respectively. Other shipping and handling costs incurred to store, move, and prepare products for shipment are recognized in cost of products sold in the consolidated statements of income.The Company sells its products through direct sales representatives and independent distributors. Additionally, a portion of the Company's revenue is generated from consignment inventory maintained at hospitals. The Company recognizes revenue when control is transferred to the customer. For products sold through direct sales representatives and independent distributors, control is transferred upon shipment or upon delivery, based on the contract terms and legal requirements. For consignment inventory, control is transferred when the product is used or implanted. Payment terms vary depending on the country of sale, type of customer, and type of product.

If a contract contains more than one performance obligation, the transaction price is allocated to each performance obligation based on relative standalone selling price. Shipping and handling is treated as a fulfillment activity rather than a promised service, and therefore, is not considered a performance obligation. Taxes assessed by a governmental authority that are both imposed on, and concurrent with, a specific revenue producing transaction and collected by the Company from customers (for example, sales, use, value added, and some excise taxes) are not included in revenue. For contracts that have an original duration of one year or less, the Company uses the practical expedient applicable to such contracts and does not adjust the transaction price for the time value of money.

The amount of revenue recognized reflects sales rebates and returns, which are estimated based on sales terms, historical experience, and trend analysis. In estimating rebates, the Company considers the lag time between the point of sale and the payment of the rebate claim, the stated rebate rates, and other relevant information. The Company records adjustments to rebates and returns reserves as increases or decreases of revenue.

The Company offers warranties on various products. For standard, assurance-type warranties, the Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. The amount of the reserve is equal to the net costs to repair or otherwise satisfy the obligation. The Company includes the warranty obligation in other accrued expenses and other liabilities in the consolidated balance sheets. For extended, service-type warranties, a portion of the transaction price is allocated to the performance obligation. Warranty obligations at April 26, 2019 and April 27, 2018 were not material.

The Company records a deferred revenue liability if a customer pays consideration before the Company transfers a good or service to the customer. Deferred revenue primarily represents remote monitoring services and equipment maintenance, for which consideration is received at the same time as consideration for the device or equipment. Deferred revenue also includes extended, service-type warranties. Revenue related to remote monitoring services, equipment maintenance, and service-type warranties is recognized over the service period as time elapses.

Remaining performance obligations include deferred revenue and amounts the Company expects to receive for goods and services that have not yet been delivered or provided under existing, noncancellable contracts with minimum purchase commitments, primarily related to consumables for previously sold equipment as well as remote monitoring services and equipment maintenance. For contracts that have an original duration of one year or less, the Company has elected the practical expedient applicable to such contracts and does not disclose the transaction price for remaining performance obligations at the end of each reporting period and when the Company expects to recognize this revenue.

Research and Development

Research and development costs are expensed when incurred. Research and development costs include costs of other research, engineering, and technical activities to develop a new product or service or make significant improvement to an existing product or manufacturing process. Research and development costs also include pre-approval regulatory and clinical trial expenses.

Contingencies

The Company records a liability in the consolidated financial statements for loss contingencies 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. Insurance recoveries related to potential claims are recognized up to the amount of the recorded liability when coverage is confirmed and the estimated recoveries are probable of payment. These recoveries are not netted against the related liabilities for financial statement presentation.

Income Taxes

The Company has deferred taxes that arise as a result of the different treatment of transactions for U.S. GAAP and income tax accounting, known as temporary differences. The Company records the tax effect of these temporary differences as deferred tax assets and deferred tax liabilities. Deferred tax assets generally represent items that may be used as a tax deduction or credit in a tax return in future years for which the Company has already recognized the tax benefit in the consolidated statements of income. The Company establishes valuation allowances for deferred tax assets when the amount of expected future taxable income is not likely to support the use of the deduction or credit. Deferred tax liabilities generally represent tax expense for which payment has been deferred or expense has already been taken as a deduction on the Company’s tax return but has not yet been recognized as an expense in the consolidated statements of income.

Other Operating Expense, Net

Other operating expense, net primarily includes royalty income and expense, Transition Service Agreement income, intangible asset charges, currency transaction and derivative gains and losses, contributions to the Medtronic Foundation, Puerto Rico excise taxes, changes in the fair value of contingent consideration, and charges associated with business exits.

Other Non-Operating Income, Net

Other non-operating income, net includes the non-service component of net periodic pension and post-retirement benefit cost, investment gains and losses, and interest income.

Currency Translation

Assets and liabilities of non-U.S. dollar functional currency entities are translated to U.S. dollars at period-end exchange rates, and the currency impacts arising from the translation of the assets and liabilities are recorded as a cumulative translation adjustment, a component of accumulated other comprehensive loss, on the consolidated balance sheets. Elements of the consolidated statements of income are translated at the average monthly currency exchange rates in effect during the period. Currency transaction gains and losses are included in other operating expense, net in the consolidated statements of income.

Stock-Based Compensation

The Company measures stock-based compensation expense at the grant date based on the fair value of the award and recognizes the compensation expense over the requisite service period, which is generally the vesting period. The amount of stock-based compensation expense recognized during a period is based on the portion of the awards that are expected to vest. The Company estimates pre-vesting forfeitures at the time of grant and revises the estimates in subsequent periods.

New Accounting Standards

Recently Adopted

In May 2014, the Financial Accounting Standards Board (FASB) issued amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue in an amount that reflects the consideration to which an entity expects to be entitled in exchange for the transfer of goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The Company adopted this guidance using the modified retrospective method in the first quarter of fiscal year 2019, and elected to apply the guidance only to contracts that were not completed as of the date of initial application. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In January 2016, the FASB issued guidance which requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The guidance also includes a simplified impairment assessment of equity investments without readily determinable fair values and presentation and disclosure changes. The Company adopted this guidance in the first quarter of fiscal year 2019 on a prospective basis. As a result of the adoption, the Company reclassified $47 million from accumulated other comprehensive loss to the opening balance of retained earnings as of April 28, 2018.

In March 2017, the FASB issued guidance which changes the financial statement presentation requirements for pension and other post-retirement benefit expense. While service cost will continue to be recognized in the same financial statement line items as other current employee compensation costs, the guidance requires all other non-service components of net benefit costs to be

classified and presented outside of income from operations. The Company adopted this guidance in the first quarter of fiscal year 2019, and the consolidated statements of income were retrospectively adjusted. For fiscal years 2018 and 2017, the Company reclassified $11 million of income and $53 million of expense, respectively, of non-service components of net periodic benefit costs, which were previously presented as a component of operating profit, to other non-operating income, net.

Not Yet Adopted

In February 2016, the FASB issued guidance which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet. The guidance will be adopted using the modified retrospective method by applying the new guidance as of the transition date with a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the period of adoption. The Company will elect the package of practical expedients upon adoption which allows the Company to not reassess whether any expired or existing contracts are or contain leases, the classification of any expired or existing leases or any initial direct costs for existing leases. Further, the Company will make accounting policy elections to not apply the recognition requirements to short-term leases and to account for lease and nonlease components as a single lease component.

This guidance is effective for the Company beginning in the first quarter of fiscal year 2020. As a result of adopting the guidance, the Company expects to record right-of-use assets and lease liabilities for operating leases in an amount of approximately one percent of total assets on the consolidated balance sheet. The Company expects the adoption to have an immaterial impact on the consolidated statements of income and cash flows. The Company will also make additional lease related disclosures in the footnotes to the Company's consolidated financial statements upon adoption.

Earnings Per Share

Earnings per share is calculated using the two-class method, as the Company's A Preferred Shares are considered participating securities. Accordingly, earnings are allocated to both ordinary shares and participating securities in determining earnings per ordinary share. Due to the limited number of A Preferred Shares outstanding, this allocation had no effect on the ordinary earnings

per share; therefore, it is not presented below. Basic earnings per share is computed based on the weighted average number of ordinary shares outstanding. Diluted earnings per share is computed based on the weighted number of ordinary shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive ordinary shares been issued, and reduced by the number of shares the Company could have repurchased with the proceeds from issuance of the potentially dilutive shares. Potentially dilutive ordinary shares include stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan.

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Revenue (Tables)

12 Months Ended

Apr. 26, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The table below illustrates net sales by segment and division for fiscal years 2019, 2018, and 2017:

	Net Sales by Fiscal Year
(in millions)	2019		2018		2017
Cardiac Rhythm & Heart Failure	$	5,849	$	5,947	$	5,649
Coronary & Structural Heart	3,730		3,562		3,113
Aortic, Peripheral & Venous	1,926		1,845		1,736
Cardiac and Vascular Group	11,505		11,354		10,498
Surgical Innovations	5,753		5,537		5,145
Respiratory, Gastrointestinal, & Renal	2,725		3,179		4,774
Minimally Invasive Therapies Group	8,478		8,716		9,919
Spine	2,654		2,668		2,641
Brain Therapies	2,604		2,354		2,098
Specialty Therapies	1,641		1,556		1,491
Pain Therapies	1,284		1,165		1,136
Restorative Therapies Group	8,183		7,743		7,366
Diabetes Group	2,391		2,140		1,927
Total	$	30,557	$	29,953	$	29,710

The tables below include net sales by market geography and segment for fiscal years 2019, 2018, and 2017:

	U.S.(1)				Non-U.S. Developed Markets(2)				Emerging Markets(3)
(in millions)	Fiscal Year 2019		Fiscal Year 2018		Fiscal Year 2019		Fiscal Year 2018		Fiscal Year 2019		Fiscal Year 2018
Cardiac and Vascular Group	$	5,750	$	5,681	$	3,767	$	3,790	$	1,988	$	1,883
Minimally Invasive Therapies Group	3,630		3,804		3,250		3,378		1,598		1,534
Restorative Therapies Group	5,478		5,164		1,759		1,720		946		859
Diabetes Group	1,336		1,226		855		739		200		175
Total	$	16,194	$	15,875	$	9,631	$	9,627	$	4,732	$	4,451

	U.S.(1)				Non-U.S. Developed Markets(2)				Emerging Markets(3)
(in millions)	Fiscal Year 2018		Fiscal Year 2017		Fiscal Year 2018		Fiscal Year 2017		Fiscal Year 2018		Fiscal Year 2017
Cardiac and Vascular Group	$	5,681	$	5,454	$	3,790	$	3,393	$	1,883	$	1,651
Minimally Invasive Therapies Group	3,804		5,049		3,378		3,479		1,534		1,391
Restorative Therapies Group	5,164		5,012		1,720		1,588		859		766
Diabetes Group	1,226		1,148		739		625		175		154
Total	$	15,875	$	16,663	$	9,627	$	9,085	$	4,451	$	3,962

(1) U.S. includes the United States and U.S. territories.

(2) Non-U.S. developed markets include Japan, Australia, New Zealand, Korea, Canada, and the countries within Western Europe.

(3)

Emerging markets include the countries of the Middle East, Africa, Latin America, Eastern Europe, and the countries of Asia that are not included in the non-U.S. developed markets, as defined above.

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Acquisitions (Tables)

12 Months Ended

Apr. 26, 2019

Business Combinations [Abstract]

Schedule of Fair Value of the Assets Acquired and Liabilities Assumed

The acquisition date fair values of the assets acquired and liabilities assumed in fiscal year 2019 were as follows:

(in millions)	Mazor Robotics		EPiX Therapeutics, Inc.		All Other		Total
Cash and cash equivalents	$	109	$	3	$	3	$	115
Investments	52		—		—		52
Accounts receivable	10		—		2		12
Inventory	7		—		27		34
Other current assets	2		1		3		6
Property, plant, and equipment	3		1		29		33
Goodwill	1,197		165		148		1,510
Other intangible assets	399		162		210		771
Tax assets	6		—		7		13
Other assets	1		2		—		3
Total assets acquired	1,786		334		429		2,549
Current liabilities	54		4		45		103
Accrued income taxes	—		—		5		5
Deferred tax liabilities	58		11		—		69
Total liabilities assumed	112		15		50		177
Net assets acquired	$	1,674	$	319	$	379	$	2,372

Reconciliation of Beginning and Ending Balances of Contingent Consideration Associated with Acquisitions

The following table provides a reconciliation of the beginning and ending balances of contingent consideration:

	Fiscal Year
(in millions)	2019			2018
Beginning Balance	$	173		$	246
Purchase price contingent consideration	151			28
Contingent consideration payments	(36		)	(72		)
Change in fair value of contingent consideration	(66		)	(29		)
Ending Balance	$	222		$	173

Schedule of Significant Unobservable Inputs

The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs:

(in millions)	Fair Value at April 26, 2019		Valuation Technique	Unobservable Input	Range
				Discount rate	11.5% - 32.5%
Revenue-based payments	$	90	Discounted cash flow	Probability of payment	65% - 100%
				Projected fiscal year of payment	2020 - 2025
				Discount rate	5.5%
Product development-based payments	$	132	Discounted cash flow	Probability of payment	75% - 100%
				Projected fiscal year of payment	2020 - 2027

The following table presents the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 at April 26, 2019:

	Valuation Technique	Unobservable Input	Range (Weighted Average)
Auction rate securities	Discounted cash flow	Years to principal recovery	2 yrs. - 12 yrs. (3 yrs.)
		Illiquidity premium	6%

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Restructuring Charges (Tables)

12 Months Ended

Apr. 26, 2019

Enterprise Excellence

Restructuring Cost and Reserve [Line Items]

Schedule of Restructuring Reserve

The following table summarizes the activity related to the Enterprise Excellence restructuring program for fiscal years 2019 and 2018:

(in millions)	Employee Termination Benefits			Associated Costs(1)			Asset Write-downs(2)			Other Costs			Total
April 28, 2017	$	—		$	—		$	—		$	—		$	—
Charges	35			61			—			—			96
Cash payments	(8		)	(59		)	—			—			(67		)
April 27, 2018	27			2			—			—			29
Charges	192			193			17			22			424
Cash payments	(118		)	(186)			—			(10		)	(314		)
Settled non-cash	—			—			(17		)	—			(17		)
April 26, 2019	$	101		$	9		$	—		$	12		$	122

(1) Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses.

(2)

Recognized within selling, general, and administrative expense in the consolidated statements of income.

Cost Synergies

Restructuring Cost and Reserve [Line Items]

Schedule of Restructuring Reserve

The following table summarizes the activity related to the Cost Synergies restructuring program for fiscal years 2019, 2018, and 2017:

(in millions)	Employee Termination  Benefits			Asset Write-downs			Other  Costs			Total
April 29, 2016	$	213		$	—		$	37		$	250
Charges	287			27			54			368
Cash payments	(179		)	—			(53		)	(232		)
Settled non-cash	—			(27		)	—			(27		)
Accrual adjustments	(60		)	—			(8		)	(68		)
April 28, 2017	261			—			30			291
Charges	25			—			20			45
Cash payments	(132		)	—			(32		)	(164		)
Accrual adjustments	(38		)	—			4			(34		)
April 27, 2018	116			—			22			138
Cash payments	(44		)	—			(13		)	(57		)
Accrual adjustments	(13		)	—			(4		)	(17		)
April 26, 2019	$	59		$	—		$	5		$	64

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Financial Instruments (Tables)

12 Months Ended

Apr. 26, 2019

Investments [Abstract]

Investments by Category and Related Balance Sheet Presentation

The following tables summarize the Company's investments in available-for-sale debt securities by significant investment category and the related consolidated balance sheet classification at April 26, 2019 and April 27, 2018:

	April 26, 2019
	Valuation									Balance Sheet Classification
(in millions)	Cost		Unrealized Gains		Unrealized Losses			Fair Value		Investments		Other Assets
Level 1:
U.S. government and agency securities	$	529	$	1	$	(7	)	$	523	$	523	$	—
Level 2:
Corporate debt securities	3,500		14		(21		)	3,493		3,493		—
U.S. government and agency securities	387		1		(7		)	381		381		—
Mortgage-backed securities	537		3		(20		)	520		520		—
Non-U.S. government and agency securities	11		—		—			11		11		—
Other asset-backed securities	529		1		(3		)	527		527		—
Total Level 2	4,964		19		(51		)	4,932		4,932		—
Level 3:
Auction rate securities	47		—		(3		)	44		—		44
Total available-for-sale debt securities	$	5,540	$	20	$	(61	)	$	5,499	$	5,455	$	44

	April 27, 2018
	Valuation									Balance Sheet Classification
(in millions)	Cost		Unrealized Gains		Unrealized Losses			Fair Value		Investments		Other Assets
Level 1:
U.S. government and agency securities	$	732	$	—	$	(26	)	$	706	$	706	$	—
Level 2:
Corporate debt securities	4,179		20		(75		)	4,124		4,124		—
U.S. government and agency securities	848		—		(24		)	824		824		—
Mortgage-backed securities	725		2		(34		)	693		693		—
Non-U.S. government and agency securities	74		—		(1		)	73		73		—
Other asset-backed securities	358		—		(2		)	356		356		—
Total Level 2	6,184		22		(136		)	6,070		6,070		—
Level 3:
Auction rate securities	47		—		(3		)	44		—		44
Total available-for-sale debt securities	$	6,963	$	22	$	(165	)	$	6,820	$	6,776	$	44

Gross Unrealized Losses and Fair Values of Available-for-sale Securities that Have Been in a Continuous Unrealized Loss Position Deemed to be Temporary, Aggregated by Investment Category

The following tables present the gross unrealized losses and fair values of the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position deemed to be temporary, aggregated by investment category, at April 26, 2019 and April 27, 2018:

	April 26, 2019
	Less than 12 months					More than 12 months
(in millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. government and agency securities	$	130	$	(1	)	$	649	$	(13	)
Corporate debt securities	582		(5		)	1,153		(16		)
Mortgage-backed securities	73		(1		)	250		(19		)
Other asset-backed securities	290		(2		)	85		(1		)
Auction rate securities	—		—			44		(3		)
Total	$	1,075	$	(9	)	$	2,181	$	(52	)

	April 27, 2018
	Less than 12 months					More than 12 months
(in millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. government and agency securities	$	762	$	(33	)	$	374	$	(17	)
Corporate debt securities	2,620		(58		)	272		(17		)
Mortgage-backed securities	442		(15		)	102		(19		)
Non-U.S. government and agency securities	32		—			36		(1		)
Other asset-backed securities	238		(1		)	63		(1		)
Auction rate securities	—		—			44		(3		)
Total	$	4,094	$	(107	)	$	891	$	(58	)

Unobservable Inputs Utilized in the Fair Value Measurement of Auction Rate Securities Classified as Level 3

The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs:

(in millions)	Fair Value at April 26, 2019		Valuation Technique	Unobservable Input	Range
				Discount rate	11.5% - 32.5%
Revenue-based payments	$	90	Discounted cash flow	Probability of payment	65% - 100%
				Projected fiscal year of payment	2020 - 2025
				Discount rate	5.5%
Product development-based payments	$	132	Discounted cash flow	Probability of payment	75% - 100%
				Projected fiscal year of payment	2020 - 2027

The following table presents the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 at April 26, 2019:

	Valuation Technique	Unobservable Input	Range (Weighted Average)
Auction rate securities	Discounted cash flow	Years to principal recovery	2 yrs. - 12 yrs. (3 yrs.)
		Illiquidity premium	6%

Reconciliation of Beginning and Ending Balances of Items Measured at Fair Value on a Recurring Basis that Used Significant Unobservable Inputs (Level 3)

The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3):

(in millions)	Total Level 3 Investments			Corporate Debt Securities			Auction Rate Securities
April 28, 2017	$	45		$	1		$	44
Settlements	(1		)	(1		)	—
April 27, 2018	44			—			44
Settlements	—			—			—
April 26, 2019	$	44		$	—		$	44

Activity Related to the Company's Debt Securities Portfolio

Activity related to the Company’s debt securities portfolio is as follows:

(in millions)	April 26, 2019			April 27, 2018			April 28, 2017
Proceeds from sales	$	3,718		$	3,309		$	3,646
Gross realized gains	18			27			49
Gross realized losses	(62		)	(21		)	(14		)

Available-for-sale Debt Securities Contractual Maturities

The April 26, 2019 balance of available-for-sale debt securities by contractual maturity is shown in the following table. Within the table, maturities of mortgage-backed securities have been allocated based upon timing of estimated cash flows assuming no change in the current interest rate environment. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

(in millions)	April 26, 2019
Due in one year or less	$	1,022
Due after one year through five years	2,198
Due after five years through ten years	2,244
Due after ten years	35
Total debt securities	$	5,499

Summary of Equity and Other Investments

The following table summarizes the Company's equity and other investments at April 26, 2019, which are classified as other assets in the consolidated balance sheets:

(in millions)	April 26, 2019
Investments without readily determinable fair values	$	308
Equity method and other investments	64
Total equity and other investments	$	372

Investments by Category and Related Balance Sheet Classification, Equity and Other Investments

The following table summarizes the values of the Company's equity and other investments by significant investment category and the related consolidated balance sheet classification at April 27, 2018:

	Valuation									Balance Sheet Classification
(in millions)	Cost		Unrealized Gains		Unrealized Losses			Fair Value		Investments		Other Assets
Level 1:
Marketable equity securities	$	63	$	99	$	—		$	162	$	—	$	162
Level 2:
Debt funds	739		—		(154		)	585		585		—
Investments measured at net asset value(1):
Debt funds	199		—		(2		)	197		197		—
Total available-for-sale equity securities	1,001		99		(156		)	944		782		162
Cost method, equity method, and other investments:
Level 3:
Cost method, equity method, and other investments	353		—		—			N/A		—		353
Total equity and other investments	$	1,354	$	99	$	(156	)	$	944	$	782	$	515

(1) Certain investments that are measured at the net asset value per share (or its equivalent) as a practical expedient are excluded from the fair value hierarchy. The fair value amounts presented herein are intended to permit reconciliation to the consolidated balance sheets.

Activity Related to the Company's Equity and Other Investments Portfolio

The table below includes activity related to the Company’s portfolio of equity and other investments. Gains and losses on equity and other investments are recognized in other non-operating income, net in the consolidated statements of income.    

(in millions)	April 26, 2019			April 27, 2018			April 28, 2017
Proceeds from sales	$	964		$	918		$	1,710
Gross realized gains	134			18			75
Gross realized losses	(30		)	(4		)	(42		)
Recognized impairment losses	(45		)	(231		)	(30		)

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Financing Arrangements (Tables)

12 Months Ended

Apr. 26, 2019

Debt Disclosure [Abstract]

Schedule of Current Debt Obligations

Current debt obligations consisted of the following:

(in millions)	April 26, 2019		April 27, 2018
Bank borrowings	$	332	$	355
Floating rate five-year 2015 senior notes	500		—
Capital lease obligations	6		5
Commercial paper	—		698
1.700 percent two-year 2017 senior notes	—		1,000
Current debt obligations	$	838	$	2,058

Schedule of Long-term Debt

Long-term debt consisted of the following:

		April 26, 2019					April 27, 2018
(in millions, except interest rates)	Maturity by Fiscal Year	Amount			Effective Interest Rate		Amount			Effective Interest Rate
Floating rate five-year 2015 senior notes	2020	$	—		—	%	$	500		2.92	%
2.500 percent five-year 2015 senior notes	2020	—			—		2,500			2.63
4.200 percent ten-year 2010 CIFSA senior notes	2021	—			—		600			2.33
0.000 percent two-year 2019 senior notes	2021	1,681			0.22		—			—
Floating rate two-year 2019 senior notes	2021	560			0.05		—			—
4.125 percent ten-year 2011 senior notes	2021	500			4.21		500			4.21
3.150 percent seven-year 2015 senior notes	2022	2,500			3.29		2,500			3.29
3.125 percent ten-year 2012 senior notes	2022	675			3.21		675			3.21
3.200 percent ten-year 2012 CIFSA senior notes	2023	650			2.72		650			2.72
0.375 percent four-year 2019 senior notes	2023	1,681			0.56		—			—
2.750 percent ten-year 2013 senior notes	2023	530			3.25		530			3.25
2.950 percent ten-year 2013 CIFSA senior notes	2024	310			2.71		310			2.71
3.625 percent ten-year 2014 senior notes	2024	850			3.61		850			3.61
3.500 percent ten-year 2015 senior notes	2025	4,000			3.74		4,000			3.74
1.125 percent eight-year 2019 senior notes	2027	1,681			1.25		—			—
3.350 percent ten-year 2017 senior notes	2027	850			3.53		850			3.53
1.625 percent twelve-year 2019 senior notes	2031	1,121			1.75		—			—
4.375 percent twenty-year 2015 senior notes	2035	2,382			4.47		2,382			4.47
6.550 percent thirty-year 2007 CIFSA senior notes	2038	284			4.68		374			4.68
2.250 percent twenty-year 2019 senior notes	2039	1,121			2.34		—			—
6.500 percent thirty-year 2009 senior notes	2039	183			6.56		300			6.56
5.550 percent thirty-year 2010 senior notes	2040	306			5.58		500			5.58
4.500 percent thirty-year 2012 senior notes	2042	129			4.54		400			4.54
4.000 percent thirty-year 2013 senior notes	2043	325			4.10		325			4.10
4.625 percent thirty-year 2014 senior notes	2044	177			4.67		650			4.67
4.625 percent thirty-year 2015 senior notes	2045	1,963			4.69		4,150			4.69
Bank borrowings	2021-2022	83			1.94		125			3.99
Debt premium, net	2021-2045	29			—		120			—
Capital lease obligations	2021-2028	10			6.39		21			4.46
Interest rate swaps	2021-2022	9			—		(6		)	—
Deferred financing costs	2021-2045	(104		)	—		(107		)	—
Long-term debt		$	24,486				$	23,699

Schedule of Maturities of Long-term Debt

Contractual maturities of debt for the next five fiscal years and thereafter, excluding deferred financing costs, debt premium, net, and the fair value of outstanding interest rate swap agreements are as follows:

(in millions)
2020	$	838
2021	2,747
2022	3,258
2023	2,862
2024	1,161
Thereafter	14,524
Total debt	25,390
Less: Current debt obligations	838
Long-term debt	$	24,552

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Derivatives and Currency Exchange Risk Management (Tables)

12 Months Ended

Apr. 26, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Amount and Location of Gains (Losses) in Statements of Income, Derivative Instruments Not Designated as Hedging Instruments

The amounts and classification of the gains (losses) in the consolidated statements of income related to derivative instruments, not designated as hedging instruments, for fiscal years 2019, 2018, and 2017 are as follows:

		Fiscal Year
(in millions)	Classification	2019		2018			2017
Currency exchange rate contracts	Other operating expense, net	$	218	$	(253	)	$	54
Total return swaps	Other operating expense, net	18		27			—
Total		$	236	$	(226	)	$	54

Amount and Location of Gains (Losses) in Statements of Income, Derivative Instruments Designated as Cash Flow Hedges

The amount of gross gains (losses) recognized in the consolidated statements of income related to derivative instruments designated as cash flow hedges for fiscal years 2019, 2018, and 2017 were as follows:

		Fiscal Year
(in millions)	Classification	2019		2018			2017
Currency exchange rate contracts	Other operating expense, net	$	108	$	(69	)	$	173

Amounts of Gains (Losses) Recognized in AOCI for Cash Flow Hedges

The amount of the gains (losses) recognized in AOCI related to the effective portion of currency exchange rate contract derivative instruments designated as cash flow hedges for fiscal years 2019, 2018, and 2017 were as follows:

	Fiscal Year
(in millions)	2019		2018			2017
Currency exchange rate contracts	$	615	$	(404	)	$	342

Amount and Location of Gains (Losses) in Statements of Income, Derivative Instruments Designated as Net Investment Hedges

The amount and classifications of the gains recognized in the consolidated statements of income for the portion of the net investment hedges excluded from the measurement of hedge ineffectiveness were as follows:

		Fiscal Year
(in millions)	Classification	2019		2018		2017
Net investment hedges	Other operating expense, net	$	12	$	—	$	—

Amounts of Gains (Losses) Recognized in AOCI for Net Investment Hedges

The amount of the gains recognized in AOCI related to the effective portion of instruments designated as net investment hedges for fiscal year 2019, 2018, or 2017 were as follows:

	Fiscal Year
(in millions)	2019		2018		2017
Net investment hedges	$	88	$	—	$	—

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables summarize the balance sheet classification and fair value of derivative instruments included in the consolidated balance sheets at April 26, 2019 and April 27, 2018. The fair value amounts are presented on a gross basis, and are segregated between derivatives that are designated and qualify as hedging instruments and those that are not designated and do not qualify as hedging instruments, and are further segregated by type of contract within those two categories.

	April 26, 2019
	Derivative Assets			Derivative Liabilities
(in millions)	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Derivatives designated as hedging instruments
Currency exchange rate contracts	Other current assets	$	234	Other accrued expenses	$	1
Interest rate contracts	Other assets	9		Other liabilities	—
Currency exchange rate contracts	Other assets	78		Other liabilities	1
Total derivatives designated as hedging instruments		321			2
Derivatives not designated as hedging instruments
Currency exchange rate contracts	Other current assets	23		Other accrued expenses	17
Total return swaps	Other current assets	15		Other accrued expenses	—
Cross-currency interest rate contracts	Other current assets	6		Other accrued expenses	—
Total derivatives not designated as hedging instruments		44			17
Total derivatives		$	365		$	19
	April 27, 2018
	Derivative Assets			Derivative Liabilities
(in millions)	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Derivatives designated as hedging instruments
Currency exchange rate contracts	Other current assets	$	37	Other accrued expenses	$	162
Interest rate contracts	Other assets	8		Other liabilities	14
Currency exchange rate contracts	Other assets	11		Other liabilities	51
Total derivatives designated as hedging instruments		56			227
Derivatives not designated as hedging instruments
Currency exchange rate contracts	Other current assets	31		Other accrued expenses	25
Total return swaps	Other current assets	4		Other accrued expenses	—
Stock warrants	Other assets	21		Other liabilities	—
Cross-currency interest rate contracts	Other assets	6		Other liabilities	6
Total derivatives not designated as hedging instruments		62			31
Total derivatives		$	118		$	258

Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table provides information by level for the derivative assets and liabilities that are measured at fair value on a recurring basis:

	April 26, 2019				April 27, 2018
(in millions)	Level 1		Level 2		Level 1		Level 2
Derivative assets	$	335	$	30	$	79	$	39
Derivative liabilities	19		—		238		20

Offsetting Assets

The following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation.

	April 26, 2019
				Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)			Financial Instruments			Cash Collateral (Received) Posted			Securities Collateral (Received) Posted		Net Amount
Derivative assets:
Currency exchange rate contracts	$	335		$	(9	)	$	(43	)	$	—	$	283
Interest rate contracts	9			—			(1		)	—		8
Total return swaps	15			—			—			—		15
Cross-currency interest rate contracts	6			—			—			—		6
	365			(9		)	(44		)	—		312
Derivative liabilities:
Currency exchange rate contracts	(19		)	9			—			—		(10		)
	(19		)	9			—			—		(10		)
Total	$	346		$	—		$	(44	)	$	—	$	302

	April 27, 2018
				Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)			Financial Instruments			Cash Collateral (Received) Posted		Securities Collateral (Received) Posted		Net Amount
Derivative assets:
Currency exchange rate contracts	$	79		$	(61	)	$	—	$	—	$	18
Interest rate contracts	8			(6		)	—		—		2
Total return swaps	4			—			—		—		4
Stock warrants	21			—			—		—		21
Cross-currency interest rate contracts	6			(4		)	—		—		2
	118			(71		)	—		—		47
Derivative liabilities:
Currency exchange rate contracts	(238		)	61			—		74		(103		)
Interest rate contracts	(14		)	6			—		2		(6		)
Cross-currency interest rate contracts	(6		)	4			—		—		(2		)
	(258		)	71			—		76		(111		)
Total	$	(140	)	$	—		$	—	$	76	$	(64	)

Offsetting Liabilities

The following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria as stipulated by the terms of the master netting arrangements with each of the counterparties. Derivatives not subject to master netting arrangements are not eligible for net presentation.

	April 26, 2019
				Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)			Financial Instruments			Cash Collateral (Received) Posted			Securities Collateral (Received) Posted		Net Amount
Derivative assets:
Currency exchange rate contracts	$	335		$	(9	)	$	(43	)	$	—	$	283
Interest rate contracts	9			—			(1		)	—		8
Total return swaps	15			—			—			—		15
Cross-currency interest rate contracts	6			—			—			—		6
	365			(9		)	(44		)	—		312
Derivative liabilities:
Currency exchange rate contracts	(19		)	9			—			—		(10		)
	(19		)	9			—			—		(10		)
Total	$	346		$	—		$	(44	)	$	—	$	302

	April 27, 2018
				Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)			Financial Instruments			Cash Collateral (Received) Posted		Securities Collateral (Received) Posted		Net Amount
Derivative assets:
Currency exchange rate contracts	$	79		$	(61	)	$	—	$	—	$	18
Interest rate contracts	8			(6		)	—		—		2
Total return swaps	4			—			—		—		4
Stock warrants	21			—			—		—		21
Cross-currency interest rate contracts	6			(4		)	—		—		2
	118			(71		)	—		—		47
Derivative liabilities:
Currency exchange rate contracts	(238		)	61			—		74		(103		)
Interest rate contracts	(14		)	6			—		2		(6		)
Cross-currency interest rate contracts	(6		)	4			—		—		(2		)
	(258		)	71			—		76		(111		)
Total	$	(140	)	$	—		$	—	$	76	$	(64	)

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Inventories (Tables)

12 Months Ended

Apr. 26, 2019

Inventory Disclosure [Abstract]

Inventory Balances

Inventory balances, net of reserves, were as follows:

(in millions)	April 26, 2019		April 27, 2018
Finished goods	$	2,476	$	2,407
Work-in-process	572		496
Raw materials	705		676
Total	$	3,753	$	3,579

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Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Apr. 26, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table presents the changes in the carrying amount of goodwill by segment:

(in millions)	Cardiac and Vascular Group			Minimally Invasive Therapies Group			Restorative Therapies Group			Diabetes Group			Total
April 28, 2017	$	6,651		$	20,411		$	9,600		$	1,853		$	38,515
Goodwill as a result of acquisitions	6			10			9			27			52
Purchase accounting adjustments	54			—			—			—			54
Currency translation and other	80			734			108			—			922
April 27, 2018	6,791			21,155			9,717			1,880			39,543
Goodwill as a result of acquisitions	165			83			1,238			24			1,510
Currency translation and other	(102		)	(857		)	(134		)	(1		)	(1,094		)
April 26, 2019	$	6,854		$	20,381		$	10,821		$	1,903		$	39,959

Schedule of Finite-Lived Intangible Assets by Major Class

The following table presents the gross carrying amount and accumulated amortization of intangible assets:

	April 26, 2019					April 27, 2018
(in millions)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Definite-lived:
Customer-related	$	16,944	$	(4,095	)	$	16,949	$	(3,139	)
Purchased technology and patents	11,405		(4,570		)	11,569		(4,441		)
Trademarks and tradenames	570		(324		)	822		(569		)
Other	85		(59		)	94		(52		)
Total	$	29,004	$	(9,048	)	$	29,434	$	(8,201	)
Indefinite-lived:
IPR&D	$	604	$	—		$	490	$	—

Schedule of Indefinite-Lived Intangible Assets by Major Class

The following table presents the gross carrying amount and accumulated amortization of intangible assets:

	April 26, 2019					April 27, 2018
(in millions)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Definite-lived:
Customer-related	$	16,944	$	(4,095	)	$	16,949	$	(3,139	)
Purchased technology and patents	11,405		(4,570		)	11,569		(4,441		)
Trademarks and tradenames	570		(324		)	822		(569		)
Other	85		(59		)	94		(52		)
Total	$	29,004	$	(9,048	)	$	29,434	$	(8,201	)
Indefinite-lived:
IPR&D	$	604	$	—		$	490	$	—

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated aggregate amortization expense by fiscal year based on the current carrying value and remaining estimated useful lives of definite-lived intangible assets at April 26, 2019, excluding any possible future amortization associated with acquired IPR&D which has not met technological feasibility, is as follows:

(in millions)	Amortization Expense
2020	$	1,741
2021	1,724
2022	1,684
2023	1,615
2024	1,574

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Property, Plant, and Equipment (Tables)

12 Months Ended

Apr. 26, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Balances and Corresponding Lives

Property, plant, and equipment balances and corresponding estimated useful lives were as follows:

(in millions)	April 26, 2019			April 27, 2018			Estimated Useful Lives (in years)
Equipment	$	5,519		$	5,171		Generally 2-7, up to 15
Computer software	1,842			1,578			Up to 5
Land and land improvements	181			187			Up to 20
Buildings and leasehold improvements	2,267			2,265			Up to 40
Construction in progress	1,111			1,058			—
Property, plant, and equipment	10,920			10,259
Less: Accumulated depreciation	(6,245		)	(5,655		)
Property, plant, and equipment, net	$	4,675		$	4,604

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Stock Purchase and Award Plans (Tables)

12 Months Ended

Apr. 26, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Stock Options Valuation Assumptions

The following table provides the weighted average fair value of options granted to employees and the related assumptions used in the Black-Scholes model:

	Fiscal Year
	2019			2018			2017
Weighted average fair value of options granted	$	14.77		$	13.71		$	14.70
Assumptions used:
Expected life (years)(1)	6.10			6.16			6.18
Risk-free interest rate(2)	2.90		%	2.00		%	1.26		%
Volatility(3)	17.77		%	19.51		%	21.07		%
Dividend yield(4)	2.25		%	2.19		%	1.97		%

(1) The Company analyzes historical employee stock option exercise and termination data to estimate the expected life assumption. The Company calculates the expected life assumption using the midpoint scenario, which combines historical exercise data with hypothetical exercise data, as the Company believes this data currently represents the best estimate of the expected life of a new employee option.

(2) The rate is based on the grant date yield of a zero-coupon U.S. Treasury bond whose maturity period equals the expected term of the option.

(3) Expected volatility is based on a blend of historical volatility and an implied volatility of the Company’s ordinary shares. Implied volatility is based on market traded options of the Company’s ordinary shares.

(4)

The dividend yield rate is calculated by dividing the Company’s annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date.

Schedule of Stock-Based Compensation Expense

The following table presents the components and classification of stock-based compensation expense recognized for stock options, restricted stock, and ESPP in fiscal years 2019, 2018, and 2017:

	Fiscal Year
(in millions)	2019			2018			2017
Stock options	$	72		$	132		$	157
Restricted stock	189			185			169
Employee stock purchase plan	29			27			22
Total stock-based compensation expense	$	290		$	344		$	348
Cost of products sold	$	30		$	44		$	49
Research and development expense	36			38			41
Selling, general, and administrative expense	224			262			256
Restructuring charges, net	—			—			2
Total stock-based compensation expense	290			344			348
Income tax benefits	(54		)	(82		)	(98		)
Total stock-based compensation expense, net of tax	$	236		$	262		$	250

Schedule of Stock Options Activity

The following table summarizes all stock option activity, including activity from options assumed or issued as a result of acquisitions, during fiscal year 2019:

	Options (in thousands)		Wtd. Avg. Exercise Price		Wtd. Avg. Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at April 27, 2018	41,039		$	66.56
Granted	5,407		89.05
Exercised	(13,767	)	62.76
Expired/Forfeited	(1,002	)	83.17
Outstanding at April 26, 2019	31,677		71.52		5.91	$	512
Vested and expected to vest at April 26, 2019	9,086		86.54		8.46	16
Exercisable at April 26, 2019	22,102		65.01		4.81	495

The following table summarizes the total cash received from the issuance of new shares upon stock option award exercises, the total intrinsic value of options exercised, and the related tax benefit during fiscal years 2019, 2018, and 2017:

	Fiscal Year
(in millions)	2019		2018		2017
Cash proceeds from options exercised	$	825	$	250	$	367
Intrinsic value of options exercised	383		248		403
Tax benefit related to options exercised	78		75		140

Schedule of Restricted Stock Award Activity

The following table summarizes restricted stock activity, including activity from restricted stock assumed or issued as a result of acquisitions, during fiscal year 2019:

	Units (in thousands)		Wtd. Avg. Grant Price
Nonvested at April 27, 2018	8,236		$	83.35
Granted	2,812		88.78
Vested	(2,397	)	72.78
Forfeited	(655	)	83.73
Nonvested at April 26, 2019	7,996		88.40

The following table summarizes the weighted-average grant date fair value of restricted stock granted, total fair value of restricted stock vested and related tax benefit during fiscal years 2019, 2018, and 2017:

	Fiscal Year
(in millions, except per share data)	2019		2018		2017
Weighted-average grant-date fair value per restricted stock	$	88.78	$	83.88	$	85.07
Fair value of restricted stock vested	174		160		131
Tax benefit related to restricted stock vested	45		63		76

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Income Taxes (Tables)

12 Months Ended

Apr. 26, 2019

Income Tax Disclosure [Abstract]

Components of Income Before Income Taxes, Based on Jurisdiction

The components of income before income taxes, based on tax jurisdiction, are as follows:

	Fiscal Year
(in millions)	2019		2018			2017
U.S.	$	877	$	(958	)	$	(234	)
International	4,320		6,633			4,836
Income before income taxes	$	5,197	$	5,675		$	4,602

Income Tax Provision

The income tax provision consists of the following:

	Fiscal Year
(in millions)	2019			2018			2017
Current tax expense:
U.S.	$	579		$	2,899		$	614
International	406			796			840
Total current tax expense	985			3,695			1,454
Deferred tax expense (benefit):
U.S.	(310		)	45			(399		)
International	(128		)	(1,160		)	(477		)
Net deferred tax benefit	(438		)	(1,115		)	(876		)
Income tax provision	$	547		$	2,580		$	578

Schedule of Deferred Tax Assets and Liabilities

Tax assets (liabilities), shown before jurisdictional netting of deferred tax assets (liabilities), are comprised of the following:

(in millions)	April 26, 2019			April 27, 2018
Deferred tax assets:
Net operating loss, capital loss, and credit carryforwards	$	6,574		$	7,463
Other accrued liabilities	389			410
Accrued compensation	315			209
Pension and post-retirement benefits	300			256
Stock-based compensation	162			190
Other	339			332
Inventory	194			207
Federal and state benefit on uncertain tax positions	83			67
Interest limitation	111			—
Unrealized loss on available-for-sale securities and derivative financial instruments	17			93
Gross deferred tax assets	8,484			9,227
Valuation allowance	(6,300		)	(7,166		)
Total deferred tax assets	2,184			2,061
Deferred tax liabilities:
Intangible assets	(1,614		)	(1,697		)
Realized loss on derivative financial instruments	(70		)	(69		)
Other	(152		)	(143		)
Accumulated depreciation	(38		)	(38		)
Outside basis difference of subsidiaries	(119		)	(131		)
Total deferred tax liabilities	(1,993		)	(2,078		)
Prepaid income taxes	363			406
Income tax receivables	335			315
Tax assets, net	$	889		$	704
Reported as (after valuation allowance and jurisdictional netting):
Other current assets	$	648		$	662
Tax assets	1,519			1,465
Deferred tax liabilities	(1,278		)	(1,423		)
Tax assets, net	$	889		$	704

Schedule of Effective Income Tax Rate Reconciliation

The Company’s effective income tax rate varied from the U.S. federal statutory tax rate as follows:

	Fiscal Year
	2019		2018		2017
U.S. federal statutory tax rate	21.0	%	30.5	%	35.0	%
Increase (decrease) in tax rate resulting from:
U.S. state taxes, net of federal tax benefit	0.9		0.8		1.0
Research and development credit	(1.2	)	(0.8	)	(0.9	)
Puerto Rico Excise Tax	(1.6	)	(1.1	)	(1.5	)
International	(10.7	)	(18.9	)	(27.9	)
U.S. Tax Reform	0.2		43.0		—
Stock based compensation	(1.0	)	(1.0	)	—
Other, net	(0.2	)	3.0		(1.0	)
Divestiture related	—		(3.8	)	—
Certain tax adjustments	(1.0	)	(8.9	)	4.4
U.S. tax on foreign earnings	4.1		2.7		3.5
Effective tax rate	10.5	%	45.5	%	12.6	%

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal years 2019, 2018, and 2017 is as follows:

	Fiscal Year
(in millions)	2019			2018			2017
Gross unrecognized tax benefits at beginning of fiscal year	$	1,727		$	1,896		$	2,703
Gross increases:
Prior year tax positions	34			13			147
Current year tax positions	109			63			75
Acquisitions	—			—			4
Gross decreases:
Prior year tax positions	(14		)	(120		)	(538		)
Settlements	—			(80		)	(467		)
Statute of limitation lapses	(20		)	(45		)	(28		)
Gross unrecognized tax benefits at end of fiscal year	1,836			1,727			1,896
Cash advance paid to taxing authorities	(859		)	(859		)	—
Gross unrecognized tax benefits at end of fiscal year, net of cash advance	$	977		$	868		$	1,896

Major Tax Jurisdictions Which Remain Subject to Examination

The major tax jurisdictions where the Company conducts business which remain subject to examination are as follows:

Jurisdiction	Earliest Year Open
United States - federal and state	1998
Brazil	2014
Canada	2011
China	2009
Costa Rica	2015
Dominican Republic	2016
Germany	2014
India	2002
Ireland	2012
Israel	2010
Italy	2005
Japan	2017
Luxembourg	2013
Mexico	2005
Puerto Rico	2011
Singapore	2013
Switzerland	2012
United Kingdom	2016

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Earnings Per Share (Tables)

12 Months Ended

Apr. 26, 2019

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The table below sets forth the computation of basic and diluted earnings per share:

	Fiscal Year
(in millions, except per share data)	2019		2018		2017
Numerator:
Net income attributable to ordinary shareholders	$	4,631	$	3,104	$	4,028
Denominator:
Basic – weighted average shares outstanding	1,346.4		1,356.7		1,378.9
Effect of dilutive securities:
Employee stock options	7.6		7.9		9.0
Employee restricted stock units	3.2		3.3		3.4
Other	0.3		0.3		0.1
Diluted – weighted average shares outstanding	1,357.5		1,368.2		1,391.4
Basic earnings per share	$	3.44	$	2.29	$	2.92
Diluted earnings per share	$	3.41	$	2.27	$	2.89

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Retirement Benefit Plans (Tables)

12 Months Ended

Apr. 26, 2019

Retirement Benefits [Abstract]

Schedule of Defined Benefit Plans

The change in benefit obligation and funded status of the Company’s U.S. and Non-U.S. pension benefits are as follows:

	U.S. Pension Benefits						Non-U.S. Pension Benefits
	Fiscal Year						Fiscal Year
(in millions)	2019			2018			2019			2018
Accumulated benefit obligation at end of year:	$	3,121		$	2,943		$	1,621		$	1,580
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	3,202		$	3,232		$	1,791		$	1,734
Service cost	109			116			59			67
Interest cost	129			117			30			28
Employee contributions	—			—			12			12
Plan curtailments and settlements	—			(168		)	(5		)	(8		)
Actuarial loss (gain)	54			12			119			(74		)
Benefits paid	(100		)	(107		)	(49		)	(51		)
Currency exchange rate changes and other	10			—			(125		)	146
Divestiture	—			—			—			(63		)
Projected benefit obligation at end of year	$	3,404		$	3,202		$	1,832		$	1,791
Change in plan assets:
Fair value of plan assets at beginning of year	$	2,661		$	2,479		$	1,404		$	1,235
Actual return on plan assets	64			243			62			67
Employer contributions	93			215			78			90
Employee contributions	—			—			12			13
Plan settlements	—			(168		)	(3		)	(4		)
Benefits paid	(100		)	(108		)	(49		)	(51		)
Currency exchange rate changes and other	10			—			(95		)	108
Divestiture	—			—			—			(54		)
Fair value of plan assets at end of year	$	2,728		$	2,661		$	1,409		$	1,404
Funded status at end of year:
Fair value of plan assets	$	2,728		$	2,661		$	1,409		$	1,404
Benefit obligations	3,404			3,202			1,832			1,791
Underfunded status of the plans	(676		)	(541		)	(423		)	(387		)
Recognized liability	$	(676	)	$	(541	)	$	(423	)	$	(387	)
Amounts recognized on the consolidated balance sheets consist of:
Non-current assets	$	—		$	—		$	31		$	16
Current liabilities	(18		)	(17		)	(8		)	(8		)
Non-current liabilities	(658		)	(524		)	(446		)	(395		)
Recognized liability	$	(676	)	$	(541	)	$	(423	)	$	(387	)
Amounts recognized in accumulated other comprehensive loss:
Prior service cost (benefit)	$	2		$	2		$	(7	)	$	(9	)
Net actuarial loss	1,216			1,088			452			380
Ending balance	$	1,218		$	1,090		$	445		$	371

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

U.S. and non-U.S. plans with accumulated benefit obligations in excess of plan assets consist of the following:

	Fiscal Year
(in millions)	2019		2018
Accumulated benefit obligation	$	4,683	$	4,110
Projected benefit obligation	4,822		4,282
Plan assets at fair value	3,829		3,472

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

Plans with projected benefit obligations in excess of plan assets consist of the following:

	Fiscal Year
(in millions)	2019		2018
Projected benefit obligation	$	4,963	$	4,736
Plan assets at fair value	3,833		3,793

Schedule of Net Benefit Costs

The net periodic benefit cost of the plans include the following components:

	U.S. Pension Benefits									Non-U.S. Pension Benefits
	Fiscal Year									Fiscal Year
(in millions)	2019			2018			2017			2019			2018			2017
Service cost	$	109		$	116		$	117		$	59		$	67		$	70
Interest cost	129			117			109			30			28			26
Expected return on plan assets	(215		)	(205		)	(195		)	(57		)	(53		)	(48		)
Amortization of prior service cost	1			1			1			(1		)	—			(1		)
Amortization of net actuarial loss	76			82			88			12			18			17
Settlement loss (gain)	—			16			—			(2		)	—			—
Special termination benefits	—			—			60			—			—			—
Net periodic benefit cost	$	100		$	127		$	180		$	41		$	60		$	64

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)

The other changes in plan assets and projected benefit obligations recognized in accumulated other comprehensive loss for fiscal year 2019 are as follows:

(in millions)	U.S. Pension Benefits			Non-U.S. Pension Benefits
Net actuarial gain	$	205		$	113
Amortization of prior service cost	(1		)	1
Amortization of net actuarial loss	(76		)	(12		)
Effect of exchange rates	—			(29		)
Total recognized in accumulated other comprehensive loss	$	128		$	73
Total recognized in net periodic benefit cost and accumulated other comprehensive loss	$	228		$	114

Schedule of Assumptions Used

The actuarial assumptions are as follows:

	U.S. Pension Benefits						Non-U.S. Pension Benefits
	Fiscal Year						Fiscal Year
	2019		2018		2017		2019		2018		2017
Critical assumptions – projected benefit obligation:
Discount rate	3.90% - 4.20%		4.20% - 4.35%		3.70% - 4.30%		0.40% - 13.90%		0.70% - 11.00%		0.45% - 11.40%
Rate of compensation increase	3.90	%	3.90	%	3.90	%	2.87	%	2.88	%	2.89	%
Critical assumptions – net periodic benefit cost:
Discount rate – benefit obligation	4.20% - 4.30%		4.00% - 4.30%		3.55% - 4.30%		0.50% - 11.00%		0.45% - 11.40%		0.25% - 10.20%
Discount rate – service cost	4.10% - 4.40%		3.70% - 4.45%		3.60% - 4.45%		0.50% - 11.00%		0.20% - 11.40%		0.05% - 10.20%
Discount rate – interest cost	4.00% - 4.10%		3.45% - 3.80%		2.90% - 3.80%		0.50% - 11.00%		0.45% - 11.40%		0.30% - 10.20%
Expected return on plan assets	7.90	%	7.90	%	8.20	%	4.23	%	4.20	%	4.45	%
Rate of compensation increase	3.90	%	3.90	%	3.90	%	2.88	%	2.89	%	2.83	%

Schedule of Allocation of Plan Assets

The Company’s U.S. plans target asset allocations at April 26, 2019, compared to the U.S. plans actual asset allocations at April 26, 2019 and April 27, 2018 by asset category, are as follows:

U.S. Plans
	Target Allocation		Actual Allocation
	April 26, 2019		April 26, 2019		April 27, 2018
Asset Category:
Equity securities	49	%	50	%	49	%
Debt securities	32		34		32
Other	19		16		19
Total	100	%	100	%	100	%

Fair Value Measurements, Retirement Benefit Plan Assets

Non-U.S. Pension Benefits

	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 26, 2019		Level 1		Level 2		Level 3
Registered investment companies	$	1,368	$	—	$	—	$	—	$	1,368
Insurance contracts	41		—		—		41		—
	$	1,409	$	—	$	—	$	41	$	1,368

	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 27, 2018		Level 1		Level 2		Level 3
Registered investment companies	$	1,362	$	—	$	—	$	—	$	1,362
Insurance contracts	42		—		—		42		—
	$	1,404	$	—	$	—	$	42	$	1,362

The following tables provide information by level for the retirement benefit plan assets that are measured at fair value, as defined by U.S. GAAP. See Note 1 for discussion of the fair value measurement terms of Levels 1, 2, and 3. In accordance with authoritative guidance adopted in fiscal year 2017, certain investments for which the fair value is measured using the net asset value per share (or its equivalent) practical expedient are not presented within the fair value hierarchy. The fair value amounts presented for these investments are intended to permit reconciliation to the total fair value of plan assets at April 26, 2019 and April 27, 2018.

U.S. Pension Benefits

	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 26, 2019		Level 1		Level 2		Level 3
Short-term investments	$	61	$	61	$	—	$	—	$	—
U.S. government securities	228		228		—		—		—
Corporate debt securities	144		—		144		—		—
Equity commingled trusts	1,365		—		—		—		1,365
Fixed income commingled trusts	301		—		—		—		301
Partnership units	629		—		—		629		—
	$	2,728	$	289	$	144	$	629	$	1,666

	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 27, 2018		Level 1		Level 2		Level 3
Short-term investments	$	181	$	181	$	—	$	—	$	—
U.S. government securities	181		181		—		—		—
Corporate debt securities	142		—		142		—		—
Equity commingled trusts	1,322		—		—		—		1,322
Fixed income commingled trusts	298		—		—		—		298
Partnership units	537		—		—		537		—
	$	2,661	$	362	$	142	$	537	$	1,620

Fair Value, Retirement Benefit Plan Assets, Unobservable Input Reconciliation

The following tables provide a reconciliation of the beginning and ending balances of U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3):

(in millions)	Partnership Units
April 27, 2018	$	537
Total realized losses	(1		)
Total unrealized gains	52
Purchases and sales, net	41
April 26, 2019	$	629

(in millions)	Partnership Units
April 28, 2017	$	468
Total realized losses	(42		)
Total unrealized gains	141
Purchases and sales, net	(30		)
April 27, 2018	$	537

The following tables provide a reconciliation of the beginning and ending balances of non-U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3):

(in millions)	Insurance Contracts
April 27, 2018	$	42
Total unrealized gains	1
Purchases and sales, net	1
Currency exchange rate changes	(3		)
April 26, 2019	$	41

(in millions)	Insurance Contracts
April 28, 2017	$	44
Total unrealized gains	2
Purchases and sales, net	(7		)
Currency exchange rate changes	3
April 27, 2018	$	42

Schedule of Expected Benefit Payments

Retiree benefit payments, which reflect expected future service, are anticipated to be paid as follows:

(in millions)	Gross Payments
Fiscal Year	U.S. Pension Benefits		Non-U.S. Pension Benefits
2020	$	115	$	51
2021	123		49
2022	133		51
2023	144		57
2024	154		56
2025 – 2029	954		350
Total	$	1,623	$	614

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Leases (Tables)

12 Months Ended

Apr. 26, 2019

Leases [Abstract]

Schedule of Future Minimum Lease Payments for Operating Leases

Future minimum payments under non-cancelable operating leases at April 26, 2019 are:

(in millions) Fiscal Year	Operating Leases
2020	$	216
2021	157
2022	103
2023	61
2024	34
Thereafter	81
Total minimum lease payments	$	652

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Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Apr. 26, 2019

Other Comprehensive Income (Loss), before Tax [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The following table provides changes in AOCI, net of tax and by component.

(in millions)	Unrealized (Loss) Gain on Investment Securities			Cumulative Translation Adjustments			Net Investment Hedges			Net Change in Retirement Obligations			Unrealized (Loss) Gain on Cash Flow Hedges			Total Accumulated Other Comprehensive (Loss) Income
April 28, 2017	$	(69	)	$	(1,195	)	$	(257	)	$	(1,129	)	$	37		$	(2,613	)
Other comprehensive (loss) income before reclassifications	(95		)	1,218			—			100			(272		)	951
Reclassifications	(8		)	(34		)	—			67			54			79
Other comprehensive (loss) income	(103		)	1,184			—			167			(218		)	1,030
Cumulative effect of change in accounting principle(1)	(22		)	—			—			(155		)	(26		)	(203		)
April 27, 2018	(194		)	(11		)	(257		)	(1,117		)	(207		)	(1,786		)
Other comprehensive income (loss) before reclassifications	67			(1,372		)	88			(266		)	457			(1,026		)
Reclassifications	35			—			—			75			(56		)	54
Other comprehensive income (loss)	102			(1,372		)	88			(191		)	401			(972		)
Cumulative effect of change in accounting principle(2)	47			—			—			—			—			47
April 26, 2019	$	(45	)	$	(1,383	)	$	(169	)	$	(1,308	)	$	194		$	(2,711	)

(1) The cumulative effect of change in accounting principle in fiscal year 2018 related to the Company's adoption of accounting guidance which permitted reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Act.

(2) See Note 1 to the consolidated financial statements for discussion regarding the adoption of accounting standards during fiscal year 2019.

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Quarterly Financial Data (unaudited) (Tables)

12 Months Ended

Apr. 26, 2019

Quarterly Financial Data [Abstract]

Schedule of Quarterly Financial Data

The table below summarizes select unaudited quarterly financial data for fiscal years 2019 and 2018:

	Fiscal Year 2019								Fiscal Year 2018
(in millions, except per share data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Net sales	$	7,384	$	7,481	$	7,546	$	8,146	$	7,390	$	7,050	$	7,369		$	8,144
Gross profit	5,180		5,278		5,281		5,663		5,038		4,927		5,175			5,746
Net income (loss)	1,077		1,120		1,271		1,182		1,009		2,013		(1,392		)	1,465
Net income (loss) attributable to Medtronic	1,075		1,115		1,269		1,172		1,016		2,017		(1,389		)	1,460
Basic earnings (loss) per share	0.79		0.83		0.95		0.87		0.75		1.49		(1.03		)	1.08
Diluted earnings (loss) per share	0.79		0.82		0.94		0.87		0.74		1.48		(1.03		)	1.07

XML

Segment and Geographic Information (Tables)

12 Months Ended

Apr. 26, 2019

Segment Reporting [Abstract]

Schedule of Net Sales by Reportable Segment

The following tables present reconciliations of financial information from the segments to the applicable line items in the Company's consolidated financial statements:

Net Sales

	Fiscal Year
(in millions)	2019		2018		2017
Cardiac and Vascular Group	$	11,505	$	11,354	$	10,498
Minimally Invasive Therapies Group	8,478		8,716		9,919
Restorative Therapies Group	8,183		7,743		7,366
Diabetes Group	2,391		2,140		1,927
Total	$	30,557	$	29,953	$	29,710

Reconciliation of Income Before Provision for Income Taxes from Segments to Consolidated

Segment EBITA

	Fiscal Year
(in millions)	2019			2018			2017
Cardiac and Vascular Group	$	4,541		$	4,460		$	4,134
Minimally Invasive Therapies Group	3,266			3,346			3,434
Restorative Therapies Group	3,323			3,058			2,868
Diabetes Group	739			634			690
Segment EBITA	11,869			11,498			11,126
Interest expense	(1,444		)	(1,146		)	(1,094		)
Interest income	283			397			366
Amortization of intangible assets	(1,764		)	(1,823		)	(1,980		)
Corporate	(1,253		)	(1,437		)	(1,232		)
Centralized distribution costs	(1,688		)	(1,936		)	(1,543		)
Restructuring and associated costs	(407		)	(107		)	(373		)
Acquisition-related items	(88		)	(132		)	(230		)
Certain litigation charges	(166		)	(61		)	(300		)
Gain/(loss) on minority investments	62			—			—
IPR&D charges	(58		)	(46		)	—
Exit of businesses	(149		)	—			—
Divestiture-related items	—			(115		)	—
Gain on sale of businesses	—			697			—
Contribution to Medtronic Foundation	—			(80		)	(100		)
Hurricane Maria	—			(34		)	—
Impact of inventory step-up	—			—			(38		)
Income before income taxes	$	5,197		$	5,675		$	4,602

Reconciliation of Assets and Depreciation Expense from Segments to Consolidated

Total Assets and Depreciation Expense

	Total Assets				Depreciation Expense
(in millions)	April 26, 2019		April 27, 2018		2019		2018		2017
Cardiac and Vascular Group	$	15,453	$	15,407	$	194	$	183	$	180
Minimally Invasive Therapies Group	41,186		43,002		206		217		358
Restorative Therapies Group	16,825		15,245		217		146		167
Diabetes Group	3,095		2,900		34		29		29
Segments	76,559		76,554		651		575		734
Corporate	13,135		14,839		244		246		203
Total	$	89,694	$	91,393	$	895	$	821	$	937

Schedule of Net Sales to External Customers and Property, Plant, and Equipment, Net, by Geographical Region

The following table presents net sales for fiscal years 2019, 2018, and 2017, and property, plant, and equipment, net at April 26, 2019 and April 27, 2018 for the Company's country of domicile, countries with significant concentrations, and all other countries:

	Net sales						Property, plant, and equipment, net
(in millions)	2019		2018		2017		April 26, 2019		April 27, 2018
Ireland	$	91	$	85	$	69	$	156	$	149
United States	16,194		15,875		16,663		3,122		2,927
Rest of world	14,272		13,993		12,978		1,397		1,528
Total other countries, excluding Ireland	30,466		29,868		29,641		4,519		4,455
Total	$	30,557	$	29,953	$	29,710	$	4,675	$	4,604

XML

Guarantor Financial Information (Tables)

12 Months Ended

Apr. 26, 2019

Condensed Financial Information Disclosure [Abstract]

Consolidating Statement of Comprehensive Income

Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 26, 2019

Medtronic Senior Notes and Medtronic Luxco Senior Notes

(in millions)	Medtronic plc			Medtronic, Inc.			Medtronic Luxco			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	1,318		$	—		$	30,558		$	(1,319	)	$	30,557
Costs and expenses:
Cost of products sold	—			1,110			—			8,833			(788		)	9,155
Research and development expense	—			659			—			1,671			—			2,330
Selling, general, and administrative expense	11			1,476			—			8,931			—			10,418
Amortization of intangible assets	—			8			—			1,756			—			1,764
Restructuring charges, net	—			44			—			154			—			198
Certain litigation charges	—			55			—			111			—			166
Other operating expense (income), net	54			(2,426		)	(28		)	3,085			(427		)	258
Operating profit (loss)	(65		)	392			28			6,017			(104		)	6,268
Other non-operating (income) expense, net	—			(507		)	(808		)	(1,890		)	2,832			(373		)
Interest expense	478			2,375			511			912			(2,832		)	1,444
Equity in net (income) loss of subsidiaries	(5,167		)	(3,089		)	(4,842		)	—			13,098			—
Income (loss) before income taxes	4,624			1,613			5,167			6,995			(13,202		)	5,197
Income tax (benefit) provision	(7		)	(246		)	—			800			—			547
Net income (loss)	4,631			1,859			5,167			6,195			(13,202		)	4,650
Net income attributable to noncontrolling interests	—			—			—			(19		)	—			(19		)
Net income (loss) attributable to Medtronic	4,631			1,859			5,167			6,176			(13,202		)	4,631
Other comprehensive income (loss), net of tax	(972		)	(1,049		)	(972		)	(882		)	2,900			(975		)
Comprehensive income attributable to noncontrolling interests	—			—			—			(16		)	—			(16		)
Total comprehensive income (loss) attributable to Medtronic	$	3,659		$	810		$	4,195		$	5,297		$	(10,302	)	$	3,659

Consolidating Statement of Comprehensive Income

Fiscal Year Ended 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
Net sales	$	—		$	1,198		$	—		$	29,952		$	(1,197	)	$	29,953
Costs and expenses:
Cost of products sold	—			971			—			8,884			(788		)	9,067
Research and development expense	—			656			—			1,600			—			2,256
Selling, general, and administrative expense	12			1,416			—			8,810			—			10,238
Amortization of intangible assets	—			8			—			1,815			—			1,823
Restructuring charges, net	—			(7		)	—			37			—			30
Certain litigation charges	—			24			—			37			—			61
Gain on sale of businesses	—			—			—			(697		)	—			(697		)
Other operating expense (income), net	52			(2,265		)	—			3,156			(408		)	535
Operating (loss) profit	(64		)	395			—			6,310			(1		)	6,640
Other non-operating (income) expense, net	—			(192		)	(482		)	(1,527		)	2,020			(181		)
Interest expense	247			1,897			234			788			(2,020		)	1,146
Equity in net (income) loss of subsidiaries	(3,408		)	(940		)	(3,160		)	—			7,508			—
Income (loss) before income taxes	3,097			(370		)	3,408			7,049			(7,509		)	5,675
Income tax (benefit) provision	(7		)	41			—			2,546			—			2,580
Net income (loss)	3,104			(411		)	3,408			4,503			(7,509		)	3,095
Net loss attributable to noncontrolling interests	—			—			—			9			—			9
Net income (loss) attributable to Medtronic	3,104			(411		)	3,408			4,512			(7,509		)	3,104
Other comprehensive income (loss), net of tax	1,030			972			1,030			954			(2,956		)	1,030
Comprehensive loss attributable to noncontrolling interests	—			—			—			9			—			9
Total comprehensive income (loss) attributable to Medtronic	$	4,134		$	561		$	4,438		$	5,466		$	(10,465	)	$	4,134

Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 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	$	—		$	1,199		$	—		$	29,708		$	(1,197	)	$	29,710
Costs and expenses:
Cost of products sold	—			935			—			9,152			(793		)	9,294
Research and development expense	—			636			—			1,557			—			2,193
Selling, general, and administrative expense	12			1,308			—			8,698			—			10,018
Amortization of intangible assets	—			11			—			1,969			—			1,980
Restructuring charges, net	—			54			—			249			—			303
Certain litigation charges	—			—			—			300			—			300
Other operating expense (income), net	18			(2,380		)	—			3,024			(423		)	239
Operating (loss) profit	(30		)	635			—			4,759			19			5,383
Other non-operating (income) expense, net	—			(197		)	(649		)	(1,065		)	1,598			(313		)
Interest expense	113			1,652			62			865			(1,598		)	1,094
Equity in net (income) loss of subsidiaries	(4,163		)	(1,563		)	(3,576		)	—			9,302			—
Income (loss) before income taxes	4,020			743			4,163			4,959			(9,283		)	4,602
Income tax (benefit) provision	(8		)	(124		)	—			710			—			578
Net income (loss)	4,028			867			4,163			4,249			(9,283		)	4,024
Net loss attributable to noncontrolling interests	—			—			—			4			—			4
Net income (loss) attributable to Medtronic	4,028			867			4,163			4,253			(9,283		)	4,028
Other comprehensive (loss) income, net of tax	(745		)	(430		)	(745		)	(928		)	2,104			(744		)
Comprehensive loss attributable to noncontrolling interests	—			—			—			3			—			3
Total comprehensive income (loss) attributable to Medtronic	$	3,283		$	437		$	3,418		$	3,324		$	(7,179	)	$	3,283

Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 26, 2019

CIFSA Senior Notes

(in millions)	Medtronic plc			CIFSA			CIFSA Subsidiary Guarantors			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	—		$	—		$	30,557		$	—		$	30,557
Costs and expenses:
Cost of products sold	—			—			—			9,155			—			9,155
Research and development expense	—			—			—			2,330			—			2,330
Selling, general, and administrative expense	11			1			4			10,402			—			10,418
Amortization of intangible assets	—			—			—			1,764			—			1,764
Restructuring charges, net	—			—			—			198			—			198
Certain litigation charges	—			—			—			166			—			166
Other operating expense (income), net	54			1			(27		)	230			—			258
Operating (loss) profit	(65		)	(2		)	23			6,312			—			6,268
Other non-operating (income) expense, net	—			(44		)	(836		)	(830		)	1,337			(373		)
Interest expense	478			99			511			1,693			(1,337		)	1,444
Equity in net (income) loss of subsidiaries	(5,167		)	(3,144		)	(4,819		)	—			13,130			—
Income (loss) before income taxes	4,624			3,087			5,167			5,449			(13,130		)	5,197
Income tax (benefit) provision	(7		)	—			—			554			—			547
Net income (loss)	4,631			3,087			5,167			4,895			(13,130		)	4,650
Net income attributable to noncontrolling interests	—			—			—			(19		)	—			(19		)
Net income (loss) attributable to Medtronic	4,631			3,087			5,167			4,876			(13,130		)	4,631
Other comprehensive income (loss), net of tax	(972		)	7			(972		)	(1,060		)	2,022			(975		)
Comprehensive income attributable to noncontrolling interests	—			—			—			(16		)	—			(16		)
Total comprehensive income (loss) attributable to Medtronic	$	3,659		$	3,094		$	4,195		$	3,819		$	(11,108	)	$	3,659

Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 27, 2018

CIFSA Senior Notes

(in millions)	Medtronic plc			CIFSA			CIFSA Subsidiary Guarantors			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	—		$	—		$	29,953		$	—		$	29,953
Costs and expenses:
Cost of products sold	—			—			—			9,067			—			9,067
Research and development expense	—			—			—			2,256			—			2,256
Selling, general, and administrative expense	12			1			2			10,223			—			10,238
Amortization of intangible assets	—			—			—			1,823			—			1,823
Restructuring charges, net	—			—			—			30			—			30
Certain litigation charges	—			—			—			61			—			61
Gain on sale of businesses	—			—			—			(697		)	—			(697		)
Other operating expense, net	52			1			—			482			—			535
Operating (loss) profit	(64		)	(2		)	(2		)	6,708			—			6,640
Other non-operating (income) expense, net	—			(60		)	(498		)	(346		)	723			(181		)
Interest expense	247			83			234			1,305			(723		)	1,146
Equity in net (income) loss of subsidiaries	(3,408		)	(4,105		)	(3,146		)	—			10,659			—
Income (loss) before income taxes	3,097			4,080			3,408			5,749			(10,659		)	5,675
Income tax (benefit) provision	(7		)	—			—			2,587			—			2,580
Net income (loss)	3,104			4,080			3,408			3,162			(10,659		)	3,095
Net loss attributable to noncontrolling interests	—			—			—			9			—			9
Net (income) loss attributable to Medtronic	3,104			4,080			3,408			3,171			(10,659		)	3,104
Other comprehensive income (loss), net of tax	1,030			43			1,030			1,030			(2,103		)	1,030
Comprehensive loss attributable to noncontrolling interests	—			—			—			9			—			9
Total comprehensive income (loss) attributable to Medtronic	$	4,134		$	4,123		$	4,438		$	4,201		$	(12,762	)	$	4,134

Consolidating Statement of Comprehensive Income

Fiscal Year Ended April 28, 2017

CIFSA Senior Notes

(in millions)	Medtronic plc			CIFSA			CIFSA Subsidiary Guarantors			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	—		$	—		$	29,710		$	—		$	29,710
Costs and expenses:
Cost of products sold	—			—			—			9,294			—			9,294
Research and development expense	—			—			—			2,193			—			2,193
Selling, general, and administrative expense	12			1			2			10,003			—			10,018
Amortization of intangible assets	—			—			—			1,980			—			1,980
Restructuring charges, net	—			—			—			303			—			303
Certain litigation charges	—			—			—			300			—			300
Other operating expense, net	18			1			4			216			—			239
Operating (loss) profit	(30		)	(2		)	(6		)	5,421			—			5,383
Other non-operating (income) expense, net	—			(82		)	(656		)	(380		)	805			(313		)
Interest expense	113			104			62			1,620			(805		)	1,094
Equity in net (income) loss of subsidiaries	(4,163		)	(3,736		)	(3,575		)	—			11,474			—
Income (loss) before income taxes	4,020			3,712			4,163			4,181			(11,474		)	4,602
Income tax (benefit) provision	(8		)	—			—			586			—			578
Net income (loss)	4,028			3,712			4,163			3,595			(11,474		)	4,024
Net loss attributable to noncontrolling interests	—			—			—			4			—			4
Net income (loss) attributable to Medtronic	4,028			3,712			4,163			3,599			(11,474		)	4,028
Other comprehensive (loss) income, net of tax	(745		)	(234		)	(745		)	(744		)	1,724			(744		)
Comprehensive loss attributable to noncontrolling interests	—			—			—			3			—			3
Total comprehensive income (loss) attributable to Medtronic	$	3,283		$	3,478		$	3,418		$	2,854		$	(9,750	)	$	3,283

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

April 26, 2019

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	$	—	$	18	$	1	$	4,374	$	—		$	4,393
Investments	—		—		—		5,455		—			5,455
Accounts receivable, net	—		—		—		6,222		—			6,222
Inventories, net	—		188		—		3,792		(227		)	3,753
Intercompany receivable	40		9,407		6		19,170		(28,623		)	—
Other current assets	10		190		3		1,941		—			2,144
Total current assets	50		9,803		10		40,954		(28,850		)	21,967
Property, plant and equipment, net	—		1,480		—		3,195		—			4,675
Goodwill	—		2,009		—		37,950		—			39,959
Other intangible assets, net	—		99		—		20,461		—			20,560
Tax assets	—		568		—		951		—			1,519
Investment in subsidiaries	64,352		71,284		65,012		—		(200,648		)	—
Intercompany loans receivable	3,000		21		27,858		35,398		(66,277		)	—
Other assets	—		216		—		798		—			1,014
Total assets	$	67,402	$	85,480	$	92,880	$	139,707	$	(295,775	)	$	89,694
LIABILITIES AND EQUITY
Current liabilities:
Current debt obligations	$	—	$	500	$	—	$	338	$	—		$	838
Accounts payable	—		481		—		1,472		—			1,953
Intercompany payable	—		11,971		7,200		9,452		(28,623		)	—
Accrued compensation	3		913		—		1,273		—			2,189
Accrued income taxes	—		—		—		567		—			567
Other accrued expenses	20		331		53		2,521		—			2,925
Total current liabilities	23		14,196		7,253		15,623		(28,623		)	8,472
Long-term debt	—		14,418		8,621		1,447		—			24,486
Accrued compensation and retirement benefits	—		1,069		—		582		—			1,651
Accrued income taxes	10		692		—		2,136		—			2,838
Intercompany loans payable	17,278		12,613		19,682		16,704		(66,277		)	—
Deferred tax liabilities	—		—		—		1,278		—			1,278
Other liabilities	—		133		—		624		—			757
Total liabilities	17,311		43,121		35,556		38,394		(94,900		)	39,482
Shareholders’ equity	50,091		42,359		57,324		101,192		(200,875		)	50,091
Noncontrolling interests	—		—		—		121		—			121
Total equity	50,091		42,359		57,324		101,313		(200,875		)	50,212
Total liabilities and equity	$	67,402	$	85,480	$	92,880	$	139,707	$	(295,775	)	$	89,694

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		73,495		61,461		—		(195,337		)	—
Intercompany loans receivable	3,000		6,519		19,337		34,196		(63,052		)	—
Other assets	—		223		—		855		—			1,078
Total assets	$	63,424	$	107,862	$	80,799	$	155,268	$	(315,960	)	$	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		41,496		53,378		100,588		(195,462		)	50,720
Noncontrolling interests	—		—		—		102		—			102
Total equity	50,720		41,496		53,378		100,690		(195,462		)	50,822
Total liabilities and equity	$	63,424	$	107,862	$	80,799	$	155,268	$	(315,960	)	$	91,393

Condensed Consolidating Balance Sheet

April 26, 2019

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	$	4,392	$	—		$	4,393
Investments	—		—		—		5,455		—			5,455
Accounts receivable, net	—		—		—		6,222		—			6,222
Inventories, net	—		—		—		3,753		—			3,753
Intercompany receivable	40		—		1,374		7,212		(8,626		)	—
Other current assets	10		—		3		2,131		—			2,144
Total current assets	50		—		1,378		29,165		(8,626		)	21,967
Property, plant and equipment, net	—		—		—		4,675		—			4,675
Goodwill	—		—		—		39,959		—			39,959
Other intangible assets, net	—		—		—		20,560		—			20,560
Tax assets	—		—		—		1,519		—			1,519
Investment in subsidiaries	64,352		39,402		63,651		—		(167,405		)	—
Intercompany loans receivable	3,000		4,119		27,858		29,002		(63,979		)	—
Other assets	—		—		—		1,014		—			1,014
Total assets	$	67,402	$	43,521	$	92,887	$	125,894	$	(240,010	)	$	89,694
LIABILITIES AND EQUITY
Current liabilities:
Current debt obligations	$	—	$	—	$	—	$	838	$	—		$	838
Accounts payable	—		—		—		1,953		—			1,953
Intercompany payable	—		1,308		7,199		119		(8,626		)	—
Accrued compensation	3		—		—		2,186		—			2,189
Accrued income taxes	—		—		—		567		—			567
Other accrued expenses	20		11		60		2,834		—			2,925
Total current liabilities	23		1,319		7,259		8,497		(8,626		)	8,472
Long-term debt	—		1,354		8,621		14,511		—			24,486
Accrued compensation and retirement benefits	—		—		—		1,651		—			1,651
Accrued income taxes	10		—		—		2,828		—			2,838
Intercompany loans payable	17,278		9,320		19,682		17,699		(63,979		)	—
Deferred tax liabilities	—		—		—		1,278		—			1,278
Other liabilities	—		—		1		756		—			757
Total liabilities	17,311		11,993		35,563		47,220		(72,605		)	39,482
Shareholders’ equity	50,091		31,528		57,324		78,553		(167,405		)	50,091
Noncontrolling interests	—		—		—		121		—			121
Total equity	50,091		31,528		57,324		78,674		(167,405		)	50,212
Total liabilities and equity	$	67,402	$	43,521	$	92,887	$	125,894	$	(240,010	)	$	89,694

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		31,239		60,122		—		(151,742		)	—
Intercompany loans receivable	3,000		1,291		19,337		19,436		(43,064		)	—
Other assets	—		—		—		1,078		—			1,078
Total assets	$	63,424	$	32,530	$	80,803	$	116,382	$	(201,746	)	$	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		29,015		53,378		69,349		(151,742		)	50,720
Noncontrolling interests	—		—		—		102		—			102
Total equity	50,720		29,015		53,378		69,451		(151,742		)	50,822
Total liabilities and equity	$	63,424	$	32,530	$	80,803	$	116,382	$	(201,746	)	$	91,393

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 26, 2019

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 operating activities	$	(7	)	$	4,944		$	298		$	7,691		$	(5,919	)	$	7,007
Investing Activities:
Acquisitions, net of cash acquired	—			(237		)	—			(1,590		)	—			(1,827		)
Additions to property, plant, and equipment	—			(313		)	—			(821		)	—			(1,134		)
Purchases of investments	—			—			—			(2,532		)	—			(2,532		)
Sales and maturities of investments	—			76			—			4,607			—			4,683
Capital contributions paid	(18		)	(97		)	—			—			115			—
Other investing activities, net	—			—			82			(46		)	—			36
Net cash (used in) provided by investing activities	(18		)	(571		)	82			(382		)	115			(774		)
Financing Activities:
Change in current debt obligations, net	—			—			(1,696		)	983			—			(713		)
Issuance of long-term debt	—			—			7,791			3			—			7,794
Payments on long-term debt	—			(6,182		)	—			(1,766		)	—			(7,948		)
Dividends to shareholders	(2,693		)	—			—			—			—			(2,693		)
Issuance of ordinary shares	992			—			—			—			—			992
Repurchase of ordinary shares	(2,877		)	—			—			—			—			(2,877		)
Net intercompany loan borrowings (repayments)	4,603			1,807			(6,518		)	108			—			—
Intercompany dividends paid	—			—			—			(5,919		)	5,919			—
Capital contributions received	—			—			—			115			(115		)	—
Other financing activities	—			—			43			(29		)	—			14
Net cash (used in) provided by financing activities	25			(4,375		)	(380		)	(6,505		)	5,804			(5,431		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(78		)	—			(78		)
Net change in cash and cash equivalents	—			(2		)	—			726			—			724
Cash and cash equivalents at beginning of period	—			20			1			3,648			—			3,669
Cash and cash equivalents at end of period	$	—		$	18		$	1		$	4,374		$	—		$	4,393

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended 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
Operating Activities:
Net cash provided by operating activities	$	155		$	(1,567	)	$	249		$	16,419		$	(10,572	)	$	4,684
Investing Activities:
Acquisitions, net of cash acquired	—			—			—			(137		)	—			(137		)
Proceeds from sale of businesses	—			—			—			6,058			—			6,058
Additions to property, plant, and equipment	—			(340		)	—			(728		)	—			(1,068		)
Purchases of investments	—			(98		)	(25		)	(3,124		)	47			(3,200		)
Sales and maturities of investments	—			25			—			4,249			(47		)	4,227
Capital contributions paid	—			(59		)	(4,200		)	—			4,259			—
Other investing activities, net	—			—			—			(22		)	—			(22		)
Net cash (used in) provided by investing activities	—			(472		)	(4,225		)	6,296			4,259			5,858
Financing Activities:
Change in current debt obligations, net	—			—			(205		)	(44		)	—			(249		)
Issuance of long-term debt	—			—			—			21			—			21
Payments on long-term debt	—			(6,166		)	—			(1,204		)	—			(7,370		)
Dividends to shareholders	(2,494		)	—			—			—			—			(2,494		)
Issuance of ordinary shares	403			—			—			—			—			403
Repurchase of ordinary shares	(2,171		)	—			—			—			—			(2,171		)
Net intercompany loan borrowings (repayments)	4,107			8,180			4,177			(16,464		)	—			—
Intercompany dividends paid	—			—			—			(10,572		)	10,572			—
Capital contributions received	—			—			—			4,259			(4,259		)	—
Other financing activities	—			—			—			(94		)	—			(94		)
Net cash (used in) provided by financing activities	(155		)	2,014			3,972			(24,098		)	6,313			(11,954		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			114			—			114
Net change in cash and cash equivalents	—			(25		)	(4		)	(1,269		)	—			(1,298		)
Cash and cash equivalents at beginning of period	—			45			5			4,917			—			4,967
Cash and cash equivalents at end of period	$	—		$	20		$	1		$	3,648		$	—		$	3,669

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 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 operating activities	$	842		$	1,902		$	302		$	4,721		$	(887	)	$	6,880
Investing Activities:
Acquisitions, net of cash acquired	—			(940		)	—			(384		)	—			(1,324		)
Additions to property, plant, and equipment	—			(369		)	—			(885		)	—			(1,254		)
Purchases of investments	—			—			—			(4,533		)	162			(4,371		)
Sales and maturities of investments	—			210			—			5,308			(162		)	5,356
Capital contributions paid	—			(248		)	—			—			248			—
Other investing activities, net	—			—			—			22			—			22
Net cash (used in) provided by investing activities	—			(1,347		)	—			(472		)	248			(1,571		)
Financing Activities:
Change in current debt obligations, net	—			—			901			5			—			906
Issuance of long-term debt	—			150			1,850			140			—			2,140
Payments on long-term debt	—			(500		)	—			(363		)	—			(863		)
Dividends to shareholders	(2,376		)	—			—			—			—			(2,376		)
Issuance of ordinary shares	428			—			—			—			—			428
Repurchase of ordinary shares	(3,544		)	—			—			—			—			(3,544		)
Net intercompany loan borrowings (repayments)	4,650			(255		)	(3,048		)	(1,347		)	—			—
Intercompany dividends paid	—			—			—			(887		)	887			—
Capital contributions received	—			—			—			248			(248		)	—
Other financing activities	—			40			—			(14		)	—			26
Net cash (used in) provided by financing activities	(842		)	(565		)	(297		)	(2,218		)	639			(3,283		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			65			—			65
Net change in cash and cash equivalents	—			(10		)	5			2,096			—			2,091
Cash and cash equivalents at beginning of period	—			55			—			2,821			—			2,876
Cash and cash equivalents at end of period	$	—		$	45		$	5		$	4,917		$	—		$	4,967

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 26, 2019

CIFSA Senior Notes

(in millions)	Medtronic plc			CIFSA			CIFSA Subsidiary Guarantors			Subsidiary Non-guarantors			Consolidating Adjustments			Total
Operating Activities:
Net cash provided by operating activities	$	(7	)	$	661		$	323		$	6,780		$	(750	)	$	7,007
Investing Activities:
Acquisitions, net of cash acquired	—			—			—			(1,827		)	—			(1,827		)
Additions to property, plant, and equipment	—			—			—			(1,134		)	—			(1,134		)
Purchases of investments	—			—			—			(2,532		)	—			(2,532		)
Sales and maturities of investments	—			—			—			4,683			—			4,683
Capital contributions paid	(18		)	(6,346		)	—			—			6,364			—
Other investing activities, net	—			—			82			(46		)	—			36
Net cash (used in) provided by investing activities	(18		)	(6,346		)	82			(856		)	6,364			(774		)
Financing Activities:
Change in current debt obligations, net	—			—			(1,696		)	983			—			(713		)
Issuance of long-term debt	—			—			7,791			3			—			7,794
Payments on long-term debt	—			(732		)	—			(7,216		)	—			(7,948		)
Dividends to shareholders	(2,693		)	—			—			—			—			(2,693		)
Issuance of ordinary shares	992			—			—			—			—			992
Repurchase of ordinary shares	(2,877		)	—			—			—			—			(2,877		)
Net intercompany loan borrowings (repayments)	4,603			6,417			(6,543		)	(4,477		)	—			—
Intercompany dividend paid	—			—			—			(750		)	750			—
Capital contributions received	—			—			—			6,364			(6,364		)	—
Other financing activities	—			—			43			(29		)	—			14
Net cash (used in) provided by financing activities	25			5,685			(405		)	(5,122		)	(5,614		)	(5,431		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(78		)	—			(78		)
Net change in cash and cash equivalents	—			—			—			724			—			724
Cash and cash equivalents at beginning of period	—			—			1			3,668			—			3,669
Cash and cash equivalents at end of period	$	—		$	—		$	1		$	4,392		$	—		$	4,393

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 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 operating activities	$	155		$	974		$	264		$	4,339		$	(1,048	)	$	4,684
Investing Activities:
Acquisitions, net of cash acquired	—			—			—			(137		)	—			(137		)
Proceeds from sale of businesses	—			—			—			6,058			—			6,058
Additions to property, plant, and equipment	—			—			—			(1,068		)	—			(1,068		)
Purchases of investments	—			—			(25		)	(3,200		)	25			(3,200		)
Sales and maturities of investments	—			—			—			4,252			(25		)	4,227
Capital contributions paid	—			(1,557		)	(4,200		)	—			5,757			—
Other investing activities, net	—			—			—			(22		)	—			(22		)
Net cash (used in) provided by investing activities	—			(1,557		)	(4,225		)	5,883			5,757			5,858
Financing Activities:
Change in current debt obligations, net	—			—			(205		)	(44		)	—			(249		)
Issuance of long-term debt	—			—			—			21			—			21
Payments on long-term debt	—			(1,150		)	—			(6,220		)	—			(7,370		)
Dividends to shareholders	(2,494		)	—			—			—			—			(2,494		)
Issuance of ordinary shares	403			—			—			—			—			403
Repurchase of ordinary shares	(2,171		)	—			—			—			—			(2,171		)
Net intercompany loan borrowings (repayments)	4,107			1,700			4,162			(9,969		)	—			—
Intercompany dividend paid	—			—			—			(1,048		)	1,048			—
Capital contributions received	—			—			—			5,757			(5,757		)	—
Other financing activities	—			—			—			(94		)	—			(94		)
Net cash (used in) provided by financing activities	(155		)	550			3,957			(11,597		)	(4,709		)	(11,954		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			114			—			114
Net change in cash and cash equivalents	—			(33		)	(4		)	(1,261		)	—			(1,298		)
Cash and cash equivalents at beginning of period	—			33			5			4,929			—			4,967
Cash and cash equivalents at end of period	$	—		$	—		$	1		$	3,668		$	—		$	3,669

Condensed Consolidating Statement of Cash Flows

Fiscal Year Ended April 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 operating activities	$	842		$	1,904		$	302		$	5,829		$	(1,997	)	$	6,880
Investing Activities:
Acquisitions, net of cash acquired	—			—			—			(1,324		)	—			(1,324		)
Additions to property, plant, and equipment	—			—			—			(1,254		)	—			(1,254		)
Purchases of investments	—			—			—			(4,371		)	—			(4,371		)
Sales and maturities of investments	—			—			—			5,356			—			5,356
Capital contributions paid	—			(537		)	—			—			537			—
Other investing activities, net	—			—			—			22			—			22
Net cash (used in) provided by investing activities	—			(537		)	—			(1,571		)	537			(1,571		)
Financing Activities:
Change in current debt obligations, net	—			—			901			5			—			906
Issuance of long-term debt	—			—			1,850			290			—			2,140
Payments on long-term debt	—			—			—			(863		)	—			(863		)
Dividends to shareholders	(2,376		)	—			—			—			—			(2,376		)
Issuance of ordinary shares	428			—			—			—			—			428
Repurchase of ordinary shares	(3,544		)	—			—			—			—			(3,544		)
Net intercompany loan borrowings (repayments)	4,650			(1,542		)	(3,048		)	(60		)	—			—
Intercompany dividend paid	—			—			—			(1,997		)	1,997			—
Capital contributions received	—			—			—			537			(537		)	—
Other financing activities	—			—			—			26			—			26
Net cash (used in) provided by financing activities	(842		)	(1,542		)	(297		)	(2,062		)	1,460			(3,283		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			65			—			65
Net change in cash and cash equivalents	—			(175		)	5			2,261			—			2,091
Cash and cash equivalents at beginning of period	—			208			—			2,668			—			2,876
Cash and cash equivalents at end of period	$	—		$	33		$	5		$	4,929		$	—		$	4,967

XML

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017	Apr. 27, 2019	Apr. 28, 2018		Apr. 29, 2017	[2]
Shipping and Handling
Cost of products sold	$ 9,155	$ 9,067	$ 9,294
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Cumulative effect of change in accounting principle					$ 0	[1]	$ 296
Accumulated Other Comprehensive Loss
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Cumulative effect of change in accounting principle					47	[1]	(203)
Retained Earnings
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Cumulative effect of change in accounting principle					(47)	[1]	$ 499
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Loss
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Cumulative effect of change in accounting principle					47
Accounting Standards Update 2016-01 | Retained Earnings
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Cumulative effect of change in accounting principle					$ (47)
Accounting Standards Update 2017-07
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Non-service components of net periodic benefit costs, expense (income) reclassified		(11)	53
Accounting Standards Update 2016-02 | Scenario, Forecast | Subsequent Event
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Right-of-use assets and lease liabilities for operating leases, percentage of total assets				1.00%
Shipping and Handling
Shipping and Handling
Cost of products sold	$ 350	$ 363	$ 370
Minimum
Intangible Assets
Intangible assets, estimated useful life	3 years
Maximum
Intangible Assets
Intangible assets, estimated useful life	20 years

[1] See Note 1 to the consolidated financial statements for discussion regarding the adoption of accounting standards during fiscal year 2019.

[2] The cumulative effect of change in accounting principle in fiscal year 2018 resulted from the adoption of accounting guidance that requires the tax effect of intra-entity transactions, other than sales of inventory, to be recognized when the transaction occurs, and accounting guidance which permitted reclassification of stranded tax effects resulting from the enactment of comprehensive U.S. tax legislation from accumulated other comprehensive loss to retained earnings.

XML

Revenue - Disaggregation of Net Sales by Segment and Division (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Apr. 26, 2019	Jan. 25, 2019	Oct. 26, 2018	Jul. 27, 2018	Apr. 27, 2018	Jan. 26, 2018	Oct. 27, 2017	Jul. 28, 2017	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Disaggregation of Revenue [Line Items]
Net sales	$ 8,146	$ 7,546	$ 7,481	$ 7,384	$ 8,144	$ 7,369	$ 7,050	$ 7,390	$ 30,557	$ 29,953	$ 29,710
Cardiac and Vascular Group
Disaggregation of Revenue [Line Items]
Net sales									11,505	11,354	10,498
Cardiac and Vascular Group | Cardiac Rhythm & Heart Failure
Disaggregation of Revenue [Line Items]
Net sales									5,849	5,947	5,649
Cardiac and Vascular Group | Coronary & Structural Heart
Disaggregation of Revenue [Line Items]
Net sales									3,730	3,562	3,113
Cardiac and Vascular Group | Aortic, Peripheral & Venous
Disaggregation of Revenue [Line Items]
Net sales									1,926	1,845	1,736
Minimally Invasive Therapies Group
Disaggregation of Revenue [Line Items]
Net sales									8,478	8,716	9,919
Minimally Invasive Therapies Group | Surgical Innovations
Disaggregation of Revenue [Line Items]
Net sales									5,753	5,537	5,145
Minimally Invasive Therapies Group | Respiratory, Gastrointestinal, & Renal
Disaggregation of Revenue [Line Items]
Net sales									2,725	3,179	4,774
Restorative Therapies Group
Disaggregation of Revenue [Line Items]
Net sales									8,183	7,743	7,366
Restorative Therapies Group | Spine
Disaggregation of Revenue [Line Items]
Net sales									2,654	2,668	2,641
Restorative Therapies Group | Brain Therapies
Disaggregation of Revenue [Line Items]
Net sales									2,604	2,354	2,098
Restorative Therapies Group | Specialty Therapies
Disaggregation of Revenue [Line Items]
Net sales									1,641	1,556	1,491
Restorative Therapies Group | Pain Therapies
Disaggregation of Revenue [Line Items]
Net sales									1,284	1,165	1,136
Diabetes Group
Disaggregation of Revenue [Line Items]
Net sales									$ 2,391	$ 2,140	$ 1,927

XML

Revenue - Disaggregation of Net Sales by Market Geography for Each Segment (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Apr. 26, 2019	Jan. 25, 2019	Oct. 26, 2018	Jul. 27, 2018	Apr. 27, 2018	Jan. 26, 2018	Oct. 27, 2017	Jul. 28, 2017	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Disaggregation of Revenue [Line Items]
Net sales	$ 8,146	$ 7,546	$ 7,481	$ 7,384	$ 8,144	$ 7,369	$ 7,050	$ 7,390	$ 30,557	$ 29,953	$ 29,710
U.S.
Disaggregation of Revenue [Line Items]
Net sales									16,194	15,875	16,663
Non-U.S. Developed Markets
Disaggregation of Revenue [Line Items]
Net sales									9,631	9,627	9,085
Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales									4,732	4,451	3,962
Cardiac and Vascular Group
Disaggregation of Revenue [Line Items]
Net sales									11,505	11,354	10,498
Cardiac and Vascular Group | U.S.
Disaggregation of Revenue [Line Items]
Net sales									5,750	5,681	5,454
Cardiac and Vascular Group | Non-U.S. Developed Markets
Disaggregation of Revenue [Line Items]
Net sales									3,767	3,790	3,393
Cardiac and Vascular Group | Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales									1,988	1,883	1,651
Minimally Invasive Therapies Group
Disaggregation of Revenue [Line Items]
Net sales									8,478	8,716	9,919
Minimally Invasive Therapies Group | U.S.
Disaggregation of Revenue [Line Items]
Net sales									3,630	3,804	5,049
Minimally Invasive Therapies Group | Non-U.S. Developed Markets
Disaggregation of Revenue [Line Items]
Net sales									3,250	3,378	3,479
Minimally Invasive Therapies Group | Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales									1,598	1,534	1,391
Restorative Therapies Group
Disaggregation of Revenue [Line Items]
Net sales									8,183	7,743	7,366
Restorative Therapies Group | U.S.
Disaggregation of Revenue [Line Items]
Net sales									5,478	5,164	5,012
Restorative Therapies Group | Non-U.S. Developed Markets
Disaggregation of Revenue [Line Items]
Net sales									1,759	1,720	1,588
Restorative Therapies Group | Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales									946	859	766
Diabetes Group
Disaggregation of Revenue [Line Items]
Net sales									2,391	2,140	1,927
Diabetes Group | U.S.
Disaggregation of Revenue [Line Items]
Net sales									1,336	1,226	1,148
Diabetes Group | Non-U.S. Developed Markets
Disaggregation of Revenue [Line Items]
Net sales									855	739	625
Diabetes Group | Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales									$ 200	$ 175	$ 154

XML

Revenue - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 315	$ 289
Revenue recognized that was previously included in deferred revenue	199
Estimated revenue expected to be recognized in future periods related to unsatisfied performance obligations	$ 900
Period over which remaining performance obligations are expected to be recognized as revenue	4 years
Other accrued expenses
Disaggregation of Revenue [Line Items]
Rebate obligations	$ 764	614
Deferred revenue	211	196
Reduction of accounts receivable
Disaggregation of Revenue [Line Items]
Rebate obligations	432	376
Other liabilities
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 104	$ 93

XML

Acquisitions , Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Apr. 26, 2019	Mar. 08, 2019	Dec. 18, 2018	Apr. 27, 2018	Apr. 28, 2017
Business Acquisition [Line Items]
Goodwill	$ 39,959			$ 39,543	$ 38,515
Total
Business Acquisition [Line Items]
Cash and cash equivalents	115
Investments	52
Accounts receivable	12
Inventory	34
Other current assets	6
Property, plant, and equipment	33
Goodwill	1,510			52
Other intangible assets	771
Tax assets	13
Other assets	3
Total assets acquired	2,549			156
Current liabilities	103
Accrued income taxes	5
Deferred tax liabilities	69
Total liabilities assumed	177			4
Net assets acquired	2,372			$ 152
Mazor Robotics
Business Acquisition [Line Items]
Cash and cash equivalents			$ 109
Investments			52
Accounts receivable			10
Inventory			7
Other current assets			2
Property, plant, and equipment			3
Goodwill			1,197
Other intangible assets			399
Tax assets			6
Other assets			1
Total assets acquired			1,786
Current liabilities			54
Accrued income taxes			0
Deferred tax liabilities			58
Total liabilities assumed			112
Net assets acquired			$ 1,674
EPiX Therapeutics, Inc.
Business Acquisition [Line Items]
Cash and cash equivalents		$ 3
Investments		0
Accounts receivable		0
Inventory		0
Other current assets		1
Property, plant, and equipment		1
Goodwill		165
Other intangible assets		162
Tax assets		0
Other assets		2
Total assets acquired		334
Current liabilities		4
Accrued income taxes		0
Deferred tax liabilities		11
Total liabilities assumed		15
Net assets acquired		$ 319
All Other
Business Acquisition [Line Items]
Cash and cash equivalents	3
Investments	0
Accounts receivable	2
Inventory	27
Other current assets	3
Property, plant, and equipment	29
Goodwill	148
Other intangible assets	210
Tax assets	7
Other assets	0
Total assets acquired	429
Current liabilities	45
Accrued income taxes	5
Deferred tax liabilities	0
Total liabilities assumed	50
Net assets acquired	$ 379

XML

Acquisitions , Additional Information (Details) - USD ($)			3 Months Ended	12 Months Ended
	Mar. 08, 2019	Dec. 18, 2018	Jul. 28, 2017	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Business Acquisition [Line Items]
Goodwill				$ 39,959,000,000	$ 39,543,000,000	$ 38,515,000,000
Purchase accounting adjustments. increase to goodwill					54,000,000
Fair value of contingent consideration				222,000,000	173,000,000	$ 246,000,000
Other liabilities
Business Acquisition [Line Items]
Fair value of contingent consideration				149,000,000	65,000,000
Other accrued expenses
Business Acquisition [Line Items]
Fair value of contingent consideration				73,000,000	108,000,000
IPR&D
Business Acquisition [Line Items]
In-process research and development acquired in connection with asset acquisition				$ 38,000,000	0
Minimum
Business Acquisition [Line Items]
Estimated useful life				3 years
Maximum
Business Acquisition [Line Items]
Estimated useful life				20 years
All Business Acquisitions
Business Acquisition [Line Items]
Intangible assets acquired				$ 771,000,000
Goodwill				1,510,000,000	52,000,000
Net assets acquired				2,372,000,000	152,000,000
Assets acquired				2,549,000,000	156,000,000
Liabilities assumed				177,000,000	4,000,000
All Business Acquisitions | Technology-Based Intangible Assets
Business Acquisition [Line Items]
Intangible assets acquired					$ 47,000,000
All Business Acquisitions | Technology-Based Intangible Assets | Minimum
Business Acquisition [Line Items]
Estimated useful life					10 years
All Business Acquisitions | Technology-Based Intangible Assets | Maximum
Business Acquisition [Line Items]
Estimated useful life					12 years
All Business Acquisitions | Customer-Related Intangible Assets
Business Acquisition [Line Items]
Intangible assets acquired					$ 48,000,000
Estimated useful life					7 years
Mazor Robotics
Business Acquisition [Line Items]
Total consideration for the transaction, net of cash acquired, including previously-held equity investment		$ 1,600,000,000
Cash consideration		1,300,000,000
Previously-held equity investment		246,000,000
Intangible assets acquired		399,000,000
Goodwill		1,197,000,000
Costs incurred in connection with acquisition				$ 51,000,000
Net assets acquired		1,674,000,000
Assets acquired		1,786,000,000
Liabilities assumed		112,000,000
Mazor Robotics | Technology-Based Intangible Assets
Business Acquisition [Line Items]
Intangible assets acquired		$ 383,000,000
Estimated useful life		10 years
Mazor Robotics | Tradenames
Business Acquisition [Line Items]
Intangible assets acquired		$ 16,000,000
Estimated useful life		10 years
EPiX Therapeutics, Inc.
Business Acquisition [Line Items]
Cash consideration	$ 216,000,000
Intangible assets acquired	162,000,000
Goodwill	165,000,000
Total consideration for the transaction, net of cash acquired	316,000,000
Net assets acquired	319,000,000
Assets acquired	334,000,000
Liabilities assumed	15,000,000
Contingent consideration	100,000,000
EPiX Therapeutics, Inc. | IPR&D
Business Acquisition [Line Items]
Indefinite-lived intangible assets acquired	$ 162,000,000
Heartware International, Inc
Business Acquisition [Line Items]
Purchase accounting adjustments. increase to goodwill			$ 54,000,000

XML

Acquisitions , Contingent Consideration (Details) $ in Millions	12 Months Ended
	Apr. 26, 2019 USD ($)	Apr. 27, 2018 USD ($)	Apr. 26, 2019 USD ($)
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions
Beginning Balance	$ 173	$ 246
Purchase price contingent consideration	151	28
Contingent consideration payments	(36)	(72)
Change in fair value of contingent consideration	(66)	(29)
Ending Balance	222	173
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration	173	$ 173	$ 222
Fair Value, Measurements, Recurring | Level 3 | Revenue-based payments
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions
Ending Balance	90
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration	90		$ 90
Fair Value, Measurements, Recurring | Level 3 | Revenue-based payments | Discount Rate | Minimum
Fair Value Inputs
Contingent consideration, significant unobservable inputs			0.115
Fair Value, Measurements, Recurring | Level 3 | Revenue-based payments | Discount Rate | Maximum
Fair Value Inputs
Contingent consideration, significant unobservable inputs			0.325
Fair Value, Measurements, Recurring | Level 3 | Revenue-based payments | Probability of Payment | Minimum
Fair Value Inputs
Contingent consideration, significant unobservable inputs			0.65
Fair Value, Measurements, Recurring | Level 3 | Revenue-based payments | Probability of Payment | Maximum
Fair Value Inputs
Contingent consideration, significant unobservable inputs			1.00
Fair Value, Measurements, Recurring | Level 3 | Product development-based payments
Reconciliation of Beginning and Ending Balances of Contingent Milestone Payments Associated with Acquisitions
Ending Balance	132
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration	$ 132		$ 132
Fair Value, Measurements, Recurring | Level 3 | Product development-based payments | Discount Rate
Fair Value Inputs
Contingent consideration, significant unobservable inputs			0.055
Fair Value, Measurements, Recurring | Level 3 | Product development-based payments | Probability of Payment | Minimum
Fair Value Inputs
Contingent consideration, significant unobservable inputs			0.75
Fair Value, Measurements, Recurring | Level 3 | Product development-based payments | Probability of Payment | Maximum
Fair Value Inputs
Contingent consideration, significant unobservable inputs			1.00

XML

Divestiture (Details)		12 Months Ended
	Jul. 29, 2017 USD ($) site	Apr. 26, 2019 USD ($)	Apr. 27, 2018 USD ($)	Apr. 28, 2017 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of businesses		$ 0	$ 6,058,000,000	$ 0
Gain on sale of businesses		0	697,000,000	0
Divestiture-related expenses				$ 0
Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of businesses	$ 6,100,000,000
Gain on sale of businesses	$ 697,000,000
Sale of businesses, number of dedicated manufacturing sites | site	17
Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency Business | Disposed of by sale, not discontinued operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Divestiture-related expenses		$ 0	115,000,000
Accelerated stock compensation expense			$ 16,000,000

XML

Restructuring Charges , Additional Information (Details) - USD ($)	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring charges, net of accrual adjustments	$ 407,000,000	$ 107,000,000
Accrual adjustments	17,000,000	34,000,000
Enterprise Excellence
Restructuring Cost and Reserve [Line Items]
Restructuring charges, net of accrual adjustments		96,000,000
Restructuring charges	424,000,000	96,000,000
Settled non cash	17,000,000
Enterprise Excellence | Cost of products sold
Restructuring Cost and Reserve [Line Items]
Restructuring charges	91,000,000	28,000,000
Enterprise Excellence | Selling, general, and administrative expense
Restructuring Cost and Reserve [Line Items]
Restructuring charges	118,000,000	33,000,000
Cost Synergies
Restructuring Cost and Reserve [Line Items]
Restructuring charges, net of accrual adjustments		11,000,000	$ 300,000,000
Accrual adjustments	17,000,000	34,000,000	68,000,000
Restructuring charges	0	45,000,000	368,000,000
Restructuring charges, including incremental defined benefit pension and post-retirement related expenses			441,000,000
Incremental defined benefit pension and post-retirement related expenses for employees that accepted voluntary early retirement packages			73,000,000
Settled non cash			27,000,000
Cost Synergies | Cost of products sold
Restructuring Cost and Reserve [Line Items]
Restructuring charges		12,000,000
Cost Synergies | Selling, general, and administrative expense
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 4,000,000
Cost Synergies | Impairment of property, plant and equipment
Restructuring Cost and Reserve [Line Items]
Settled non cash			17,000,000
Cost Synergies | Inventory write-offs and discontinued product lines | Cost of products sold
Restructuring Cost and Reserve [Line Items]
Settled non cash			$ 10,000,000
Minimum | Enterprise Excellence | Pre-tax exit and disposal costs
Restructuring Cost and Reserve [Line Items]
Estimated expected restructuring costs	1,600,000,000
Maximum | Enterprise Excellence | Pre-tax exit and disposal costs
Restructuring Cost and Reserve [Line Items]
Estimated expected restructuring costs	$ 1,800,000,000

XML

Restructuring Charges (Details) - USD ($)	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Changes in Restructuring Reserves
Accrual adjustments	$ (17,000,000)	$ (34,000,000)
Enterprise Excellence
Changes in Restructuring Reserves
Beginning balance	29,000,000	0
Charges	424,000,000	96,000,000
Cash payments	(314,000,000)	(67,000,000)
Settled non-cash	(17,000,000)
Ending balance	122,000,000	29,000,000	$ 0
Enterprise Excellence | Employee Termination Benefits
Changes in Restructuring Reserves
Beginning balance	27,000,000	0
Charges	192,000,000	35,000,000
Cash payments	(118,000,000)	(8,000,000)
Settled non-cash	0
Ending balance	101,000,000	27,000,000	0
Enterprise Excellence | Associated Costs
Changes in Restructuring Reserves
Beginning balance	2,000,000	0
Charges	193,000,000	61,000,000
Cash payments	(186,000,000)	(59,000,000)
Settled non-cash	0
Ending balance	9,000,000	2,000,000	0
Enterprise Excellence | Asset Write-downs
Changes in Restructuring Reserves
Beginning balance	0	0
Charges	17,000,000	0
Cash payments	0	0
Settled non-cash	(17,000,000)
Ending balance	0	0	0
Enterprise Excellence | Other Costs
Changes in Restructuring Reserves
Beginning balance	0	0
Charges	22,000,000	0
Cash payments	(10,000,000)	0
Settled non-cash	0
Ending balance	12,000,000	0	0
Cost Synergies
Changes in Restructuring Reserves
Beginning balance	138,000,000	291,000,000	250,000,000
Charges	0	45,000,000	368,000,000
Cash payments	(57,000,000)	(164,000,000)	(232,000,000)
Settled non-cash			(27,000,000)
Accrual adjustments	(17,000,000)	(34,000,000)	(68,000,000)
Ending balance	64,000,000	138,000,000	291,000,000
Cost Synergies | Employee Termination Benefits
Changes in Restructuring Reserves
Beginning balance	116,000,000	261,000,000	213,000,000
Charges		25,000,000	287,000,000
Cash payments	(44,000,000)	(132,000,000)	(179,000,000)
Settled non-cash			0
Accrual adjustments	(13,000,000)	(38,000,000)	(60,000,000)
Ending balance	59,000,000	116,000,000	261,000,000
Cost Synergies | Asset Write-downs
Changes in Restructuring Reserves
Beginning balance	0	0	0
Charges		0	27,000,000
Cash payments	0	0	0
Settled non-cash			(27,000,000)
Accrual adjustments	0	0	0
Ending balance	0	0	0
Cost Synergies | Other Costs
Changes in Restructuring Reserves
Beginning balance	22,000,000	30,000,000	37,000,000
Charges		20,000,000	54,000,000
Cash payments	(13,000,000)	(32,000,000)	(53,000,000)
Settled non-cash			0
Accrual adjustments	(4,000,000)	4,000,000	(8,000,000)
Ending balance	$ 5,000,000	$ 22,000,000	$ 30,000,000

XML

Financial Instruments , Investments by Category and Related Balance Sheet Presentation (Details) - USD ($) $ in Millions	Apr. 26, 2019	Apr. 27, 2018
Schedule of Investments [Line Items]
Cost	$ 5,540	$ 6,963
Unrealized Gains	20	22
Unrealized Losses	(61)	(165)
Fair Value	5,499	6,820
Investments
Schedule of Investments [Line Items]
Fair Value	5,455	6,776
Other Assets
Schedule of Investments [Line Items]
Fair Value	44	44
Level 1 | U.S. government and agency securities
Schedule of Investments [Line Items]
Cost	529	732
Unrealized Gains	1	0
Unrealized Losses	(7)	(26)
Fair Value	523	706
Level 1 | U.S. government and agency securities | Investments
Schedule of Investments [Line Items]
Fair Value	523	706
Level 1 | U.S. government and agency securities | Other Assets
Schedule of Investments [Line Items]
Fair Value	0	0
Level 2
Schedule of Investments [Line Items]
Cost	4,964	6,184
Unrealized Gains	19	22
Unrealized Losses	(51)	(136)
Fair Value	4,932	6,070
Level 2 | Investments
Schedule of Investments [Line Items]
Fair Value	4,932	6,070
Level 2 | Other Assets
Schedule of Investments [Line Items]
Fair Value	0	0
Level 2 | U.S. government and agency securities
Schedule of Investments [Line Items]
Cost	387	848
Unrealized Gains	1	0
Unrealized Losses	(7)	(24)
Fair Value	381	824
Level 2 | U.S. government and agency securities | Investments
Schedule of Investments [Line Items]
Fair Value	381	824
Level 2 | U.S. government and agency securities | Other Assets
Schedule of Investments [Line Items]
Fair Value	0	0
Level 2 | Corporate debt securities
Schedule of Investments [Line Items]
Cost	3,500	4,179
Unrealized Gains	14	20
Unrealized Losses	(21)	(75)
Fair Value	3,493	4,124
Level 2 | Corporate debt securities | Investments
Schedule of Investments [Line Items]
Fair Value	3,493	4,124
Level 2 | Corporate debt securities | Other Assets
Schedule of Investments [Line Items]
Fair Value	0	0
Level 2 | Mortgage-backed securities
Schedule of Investments [Line Items]
Cost	537	725
Unrealized Gains	3	2
Unrealized Losses	(20)	(34)
Fair Value	520	693
Level 2 | Mortgage-backed securities | Investments
Schedule of Investments [Line Items]
Fair Value	520	693
Level 2 | Mortgage-backed securities | Other Assets
Schedule of Investments [Line Items]
Fair Value	0	0
Level 2 | Non-U.S. government and agency securities
Schedule of Investments [Line Items]
Cost	11	74
Unrealized Gains	0	0
Unrealized Losses	0	(1)
Fair Value	11	73
Level 2 | Non-U.S. government and agency securities | Investments
Schedule of Investments [Line Items]
Fair Value	11	73
Level 2 | Non-U.S. government and agency securities | Other Assets
Schedule of Investments [Line Items]
Fair Value	0	0
Level 2 | Other asset-backed securities
Schedule of Investments [Line Items]
Cost	529	358
Unrealized Gains	1	0
Unrealized Losses	(3)	(2)
Fair Value	527	356
Level 2 | Other asset-backed securities | Investments
Schedule of Investments [Line Items]
Fair Value	527	356
Level 2 | Other asset-backed securities | Other Assets
Schedule of Investments [Line Items]
Fair Value	0	0
Level 3 | Auction rate securities
Schedule of Investments [Line Items]
Cost	47	47
Unrealized Gains	0	0
Unrealized Losses	(3)	(3)
Fair Value	44	44
Level 3 | Auction rate securities | Investments
Schedule of Investments [Line Items]
Fair Value	0	0
Level 3 | Auction rate securities | Other Assets
Schedule of Investments [Line Items]
Fair Value	$ 44	$ 44

XML

Financial Instruments , AFS in Continuous Loss Position (Details) - USD ($) $ in Millions	Apr. 26, 2019	Apr. 27, 2018
Fair Value
Less than 12 months	$ 1,075	$ 4,094
More than 12 months	2,181	891
Unrealized Losses
Less than 12 months	(9)	(107)
More than 12 months	(52)	(58)
U.S. government and agency securities
Fair Value
Less than 12 months	130	762
More than 12 months	649	374
Unrealized Losses
Less than 12 months	(1)	(33)
More than 12 months	(13)	(17)
Corporate debt securities
Fair Value
Less than 12 months	582	2,620
More than 12 months	1,153	272
Unrealized Losses
Less than 12 months	(5)	(58)
More than 12 months	(16)	(17)
Mortgage-backed securities
Fair Value
Less than 12 months	73	442
More than 12 months	250	102
Unrealized Losses
Less than 12 months	(1)	(15)
More than 12 months	(19)	(19)
Non-U.S. government and agency securities
Fair Value
Less than 12 months		32
More than 12 months		36
Unrealized Losses
Less than 12 months		0
More than 12 months		(1)
Other asset-backed securities
Fair Value
Less than 12 months	290	238
More than 12 months	85	63
Unrealized Losses
Less than 12 months	(2)	(1)
More than 12 months	(1)	(1)
Auction rate securities
Fair Value
Less than 12 months	0	0
More than 12 months	44	44
Unrealized Losses
Less than 12 months	0	0
More than 12 months	$ (3)	$ (3)

XML

Financial Instruments , Unobservable Inputs (Details) - Fair Value, Measurements, Recurring - Level 3 - Auction rate securities	Apr. 26, 2019
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Years to principal recovery	3 years
Illiquidity premium
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Measurement input	0.06
Minimum
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Years to principal recovery	2 years
Maximum
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Years to principal recovery	12 years

XML

Financial Instruments , Items Measured at Fair Value on a Recurring Basis that Used Significant Unobservable Inputs (Level 3) (Details) - Fair Value, Measurements, Recurring - Level 3 - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Beginning balance	$ 44	$ 45
Settlements	0	(1)
Ending balance	44	44
Corporate debt securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Beginning balance	0	1
Settlements	0	(1)
Ending balance	0	0
Auction rate securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Beginning balance	44	44
Settlements	0	0
Ending balance	$ 44	$ 44

XML

Financial Instruments , Activity Related to the Company's Debt Securities Portfolio and Available-for-sale Debt Securities Contractual Maturities (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
AFS Gross Realized Gain (Loss)
Proceeds from sales	$ 3,718	$ 3,309	$ 3,646
Gross realized gains	18	27	49
Gross realized losses	(62)	(21)	$ (14)
AFS Debt Maturities
Due in one year or less	1,022
Due after one year through five years	2,198
Due after five years through ten years	2,244
Due after ten years	35
Total debt securities	$ 5,499	$ 6,820

XML

Financial Instruments , Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017	Apr. 28, 2018		Apr. 29, 2017	[2]
Schedule of Investments [Line Items]
Credit loss portion of other-than-temporary impairments	$ 0	$ 0
Reductions for available-for-sale securities sold	0	0
Cumulative effect of change in accounting principle				$ 0	[1]	$ 296
Investment loss	0	227	$ 0
Carrying value of investments prior to recognizing impairment charges		317
Investment loss
Schedule of Investments [Line Items]
Investment loss		227
Equity Investments
Schedule of Investments [Line Items]
Net gains recognized	104
Net realized gains on equity and other investments sold during the period	94
Net unrealized gains on equity and other investments still held	10
Investment loss	$ 45	$ 231	$ 30
Accumulated Other Comprehensive Loss
Schedule of Investments [Line Items]
Cumulative effect of change in accounting principle				47	[1]	(203)
Accumulated Other Comprehensive Loss | Accounting Standards Update 2016-01
Schedule of Investments [Line Items]
Cumulative effect of change in accounting principle				47
Retained Earnings
Schedule of Investments [Line Items]
Cumulative effect of change in accounting principle				(47)	[1]	$ 499
Retained Earnings | Accounting Standards Update 2016-01
Schedule of Investments [Line Items]
Cumulative effect of change in accounting principle				$ (47)

[1] See Note 1 to the consolidated financial statements for discussion regarding the adoption of accounting standards during fiscal year 2019.

[2] The cumulative effect of change in accounting principle in fiscal year 2018 resulted from the adoption of accounting guidance that requires the tax effect of intra-entity transactions, other than sales of inventory, to be recognized when the transaction occurs, and accounting guidance which permitted reclassification of stranded tax effects resulting from the enactment of comprehensive U.S. tax legislation from accumulated other comprehensive loss to retained earnings.

XML

Financial Instruments , Summary of Equity and Other Investments (Details) - Other Assets $ in Millions	Apr. 26, 2019 USD ($)
Investment [Line Items]
Investments without readily determinable fair values	$ 308
Equity method and other investments	64
Total equity and other investments	$ 372

XML

Financial Instruments , Investments by Category and Related Balance Sheet Classification, Equity and Other Investments (Details) $ in Millions	Apr. 27, 2018 USD ($)
Equity Investments
Total available-for-sale equity securities
Cost	$ 1,001
Unrealized Gains	99
Unrealized Losses	(156)
Fair Value	944
Total equity and other investments
Cost	1,354
Unrealized Gains	99
Unrealized Losses	(156)
Fair Value	944
Equity Investments | Level 3
Cost method, equity method, and other investments:
Cost	353
Equity Investments | Investments
Total available-for-sale equity securities
Fair Value	782
Total equity and other investments
Fair Value	782
Equity Investments | Investments | Level 3
Cost method, equity method, and other investments:
Cost	0
Equity Investments | Other assets
Total available-for-sale equity securities
Fair Value	162
Total equity and other investments
Fair Value	515
Equity Investments | Other assets | Level 3
Cost method, equity method, and other investments:
Cost	353
Marketable equity securities | Level 1
Total available-for-sale equity securities
Cost	63
Unrealized Gains	99
Unrealized Losses	0
Fair Value	162
Marketable equity securities | Investments | Level 1
Total available-for-sale equity securities
Fair Value	0
Marketable equity securities | Other assets | Level 1
Total available-for-sale equity securities
Fair Value	162
Debt funds | Level 2
Total available-for-sale equity securities
Cost	739
Unrealized Gains	0
Unrealized Losses	(154)
Fair Value	585
Debt funds | Investments measured at net asset value
Total available-for-sale equity securities
Cost	199
Unrealized Gains	0
Unrealized Losses	(2)
Fair Value	197
Debt funds | Investments | Level 2
Total available-for-sale equity securities
Fair Value	585
Debt funds | Investments | Investments measured at net asset value
Total available-for-sale equity securities
Fair Value	197
Debt funds | Other assets | Level 2
Total available-for-sale equity securities
Fair Value	0
Debt funds | Other assets | Investments measured at net asset value
Total available-for-sale equity securities
Fair Value	$ 0

XML

Financial Instruments , Activity Related to the Company's Investment Portfolio, Equity and Other Investments (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Investment [Line Items]
Proceeds from sales	$ 4,683	$ 4,227	$ 5,356
Recognized impairment losses	0	(227)	0
Equity Investments
Investment [Line Items]
Proceeds from sales	964	918	1,710
Gross realized gains	134	18	75
Gross realized losses	(30)	(4)	(42)
Recognized impairment losses	$ (45)	$ (231)	$ (30)

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Financing Arrangements , Current Debt Obligations (Details) - USD ($)	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018
Short-term Debt [Line Items]
Current debt obligations	$ 838,000,000	$ 2,058,000,000
Bank borrowings
Short-term Debt [Line Items]
Current debt obligations	332,000,000	355,000,000
Capital lease obligations
Short-term Debt [Line Items]
Current debt obligations	6,000,000	5,000,000
Commercial paper | Commercial paper
Short-term Debt [Line Items]
Current debt obligations	$ 0	698,000,000
Senior Notes | Floating rate five-year 2015 senior notes
Short-term Debt [Line Items]
Debt term	5 years
Current debt obligations	$ 500,000,000	0
Senior Notes | 1.700 percent two-year 2017 senior notes
Short-term Debt [Line Items]
Stated interest rate	1.70%
Debt term	2 years
Current debt obligations	$ 0	$ 1,000,000,000

XML

Financing Arrangements , Additional Information (Details)		1 Months Ended		12 Months Ended
	Dec. 12, 2018 USD ($) extension	Mar. 31, 2019 USD ($) tranche	Apr. 27, 2018 USD ($)	Apr. 26, 2019 USD ($)	Apr. 27, 2018 USD ($)	Apr. 28, 2017 USD ($)	Mar. 31, 2019 EUR (€) tranche	Jan. 26, 2015 USD ($)
Debt Instrument [Line Items]
Amount of current debt obligations outstanding			$ 2,058,000,000	$ 838,000,000	$ 2,058,000,000
Principal value			24,500,000,000	25,000,000,000.0	24,500,000,000
Cash proceeds				7,794,000,000	21,000,000	$ 2,140,000,000
Loss on debt extinguishment				457,000,000	38,000,000	$ 0
Estimated fair value of senior notes			25,100,000,000	26,200,000,000	25,100,000,000
Senior Notes
Debt Instrument [Line Items]
Redemption of senior notes, face amount		$ 6,400,000,000	1,200,000,000		1,200,000,000
Redemption of senior notes, consideration		6,900,000,000	1,200,000,000
Loss on debt extinguishment		$ 485,000,000
Loss on debt redemption			38,000,000
$3.5 Billion Revolving Credit Facility | Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 3,500,000,000
Debt term	5 years
Line of credit, number of extension options | extension	2
Length of extension from maturity date	1 year
Additional borrowing capacity	$ 1,000,000,000.0
Committed line of credit outstanding			$ 0	$ 0	$ 0
2019 Senior Notes | Senior Notes
Debt Instrument [Line Items]
Number of tranches | tranche		6					6
Principal value | €							€ 7,000,000,000.0
Cash proceeds		$ 7,800,000,000
Floating rate two-year 2019 senior notes | Senior Notes
Debt Instrument [Line Items]
Debt term				2 years
Principal value | €							€ 500,000,000
0.000 percent two-year 2019 senior notes | Senior Notes
Debt Instrument [Line Items]
Stated interest rate		0.00%		0.00%			0.00%
Debt term				2 years
Principal value | €							€ 1,500,000,000
0.375 percent four-year 2019 senior notes | Senior Notes
Debt Instrument [Line Items]
Stated interest rate		0.375%		0.375%			0.375%
Debt term				4 years
Principal value | €							€ 1,500,000,000
1.125 percent eight-year 2019 senior notes | Senior Notes
Debt Instrument [Line Items]
Stated interest rate		1.125%		1.125%			1.125%
Debt term				8 years
Principal value | €							€ 1,500,000,000
1.625 percent twelve-year 2019 senior notes | Senior Notes
Debt Instrument [Line Items]
Stated interest rate		1.625%		1.625%			1.625%
Debt term				12 years
Principal value | €							€ 1,000,000,000.0
2.250 percent twenty-year 2019 senior notes | Senior Notes
Debt Instrument [Line Items]
Stated interest rate		2.25%		2.25%			2.25%
Debt term				20 years
Principal value | €							€ 1,000,000,000.0
4.125 percent ten-year 2011 senior notes | Senior Notes
Debt Instrument [Line Items]
Stated interest rate			4.125%	4.125%	4.125%
Debt term				10 years
Principal value			$ 500,000,000	$ 500,000,000	$ 500,000,000
3.125 percent ten-year 2012 senior notes | Senior Notes
Debt Instrument [Line Items]
Stated interest rate			3.125%	3.125%	3.125%
Debt term				10 years
Principal value			$ 675,000,000	$ 675,000,000	$ 675,000,000
Senior Notes | 1.700 percent two-year 2017 senior notes
Debt Instrument [Line Items]
Stated interest rate				1.70%
Amount of current debt obligations outstanding			1,000,000,000	$ 0	1,000,000,000
Debt term				2 years
Repayments of debt		$ 1,000,000,000.0
Bank borrowings
Debt Instrument [Line Items]
Amount of current debt obligations outstanding			$ 355,000,000	$ 332,000,000	$ 355,000,000
Bank borrowings | Minimum
Debt Instrument [Line Items]
Stated interest rate				0.18%
Commercial paper
Debt Instrument [Line Items]
Weighted average original maturity				27 days	28 days
Weighted average interest rate			1.46%	2.12%	1.46%
Commercial paper | Commercial paper
Debt Instrument [Line Items]
Commercial paper, maximum borrowing capacity								$ 3,500,000,000
Amount of current debt obligations outstanding			$ 698,000,000	$ 0	$ 698,000,000

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Financing Arrangements , Long-term Debt (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Mar. 31, 2019	Apr. 27, 2018
Debt Instrument [Line Items]
Debt premium, net	$ 29		$ 120
Deferred financing costs	(104)		(107)
Long-term debt	24,486		23,699
Interest rate swaps
Debt Instrument [Line Items]
Interest rate swaps	$ 9		(6)
Senior Notes | Floating rate five-year 2015 senior notes
Debt Instrument [Line Items]
Debt term	5 years
Amount	$ 0		$ 500
Effective Interest Rate	0.00%		2.92%
Senior Notes | 2.500 percent five-year 2015 senior notes
Debt Instrument [Line Items]
Stated interest rate	2.50%
Debt term	5 years
Amount	$ 0		$ 2,500
Effective Interest Rate	0.00%		2.63%
Senior Notes | 4.200 percent ten-year 2010 CIFSA senior notes
Debt Instrument [Line Items]
Stated interest rate	4.20%
Debt term	10 years
Amount	$ 0		$ 600
Effective Interest Rate	0.00%		2.33%
Senior Notes | 0.000 percent two-year 2019 senior notes
Debt Instrument [Line Items]
Stated interest rate	0.00%	0.00%
Debt term	2 years
Amount	$ 1,681		$ 0
Effective Interest Rate	0.22%		0.00%
Senior Notes | Floating rate two-year 2019 senior notes
Debt Instrument [Line Items]
Debt term	2 years
Amount	$ 560		$ 0
Effective Interest Rate	0.05%		0.00%
Senior Notes | 4.125 percent ten-year 2011 senior notes
Debt Instrument [Line Items]
Stated interest rate	4.125%		4.125%
Debt term	10 years
Amount	$ 500		$ 500
Effective Interest Rate	4.21%		4.21%
Senior Notes | 3.150 percent seven-year 2015 senior notes
Debt Instrument [Line Items]
Stated interest rate	3.15%
Debt term	7 years
Amount	$ 2,500		$ 2,500
Effective Interest Rate	3.29%		3.29%
Senior Notes | 3.125 percent ten-year 2012 senior notes
Debt Instrument [Line Items]
Stated interest rate	3.125%		3.125%
Debt term	10 years
Amount	$ 675		$ 675
Effective Interest Rate	3.21%		3.21%
Senior Notes | 3.200 percent ten-year 2012 CIFSA senior notes
Debt Instrument [Line Items]
Stated interest rate	3.20%
Debt term	10 years
Amount	$ 650		$ 650
Effective Interest Rate	2.72%		2.72%
Senior Notes | 0.375 percent four-year 2019 senior notes
Debt Instrument [Line Items]
Stated interest rate	0.375%	0.375%
Debt term	4 years
Amount	$ 1,681		$ 0
Effective Interest Rate	0.56%		0.00%
Senior Notes | 2.750 percent ten-year 2013 senior notes
Debt Instrument [Line Items]
Stated interest rate	2.75%
Debt term	10 years
Amount	$ 530		$ 530
Effective Interest Rate	3.25%		3.25%
Senior Notes | 2.950 percent ten-year 2013 CIFSA senior notes
Debt Instrument [Line Items]
Stated interest rate	2.95%
Debt term	10 years
Amount	$ 310		$ 310
Effective Interest Rate	2.71%		2.71%
Senior Notes | 3.625 percent ten-year 2014 senior notes
Debt Instrument [Line Items]
Stated interest rate	3.625%
Debt term	10 years
Amount	$ 850		$ 850
Effective Interest Rate	3.61%		3.61%
Senior Notes | 3.500 percent ten-year 2015 senior notes
Debt Instrument [Line Items]
Stated interest rate	3.50%
Debt term	10 years
Amount	$ 4,000		$ 4,000
Effective Interest Rate	3.74%		3.74%
Senior Notes | 1.125 percent eight-year 2019 senior notes
Debt Instrument [Line Items]
Stated interest rate	1.125%	1.125%
Debt term	8 years
Amount	$ 1,681		$ 0
Effective Interest Rate	1.25%		0.00%
Senior Notes | 3.350 percent ten-year 2017 senior notes
Debt Instrument [Line Items]
Stated interest rate	3.35%
Debt term	10 years
Amount	$ 850		$ 850
Effective Interest Rate	3.53%		3.53%
Senior Notes | 1.625 percent twelve-year 2019 senior notes
Debt Instrument [Line Items]
Stated interest rate	1.625%	1.625%
Debt term	12 years
Amount	$ 1,121		$ 0
Effective Interest Rate	1.75%		0.00%
Senior Notes | 4.375 percent twenty-year 2015 senior notes
Debt Instrument [Line Items]
Stated interest rate	4.375%
Debt term	20 years
Amount	$ 2,382		$ 2,382
Effective Interest Rate	4.47%		4.47%
Senior Notes | 6.550 percent thirty-year 2007 CIFSA senior notes
Debt Instrument [Line Items]
Stated interest rate	6.55%
Debt term	30 years
Amount	$ 284		$ 374
Effective Interest Rate	4.68%		4.68%
Senior Notes | 2.250 percent twenty-year 2019 senior notes
Debt Instrument [Line Items]
Stated interest rate	2.25%	2.25%
Debt term	20 years
Amount	$ 1,121		$ 0
Effective Interest Rate	2.34%		0.00%
Senior Notes | 6.500 percent thirty-year 2009 senior notes
Debt Instrument [Line Items]
Stated interest rate	6.50%
Debt term	30 years
Amount	$ 183		$ 300
Effective Interest Rate	6.56%		6.56%
Senior Notes | 5.550 percent thirty-year 2010 senior notes
Debt Instrument [Line Items]
Stated interest rate	5.55%
Debt term	30 years
Amount	$ 306		$ 500
Effective Interest Rate	5.58%		5.58%
Senior Notes | 4.500 percent thirty-year 2012 senior notes
Debt Instrument [Line Items]
Stated interest rate	4.50%
Debt term	30 years
Amount	$ 129		$ 400
Effective Interest Rate	4.54%		4.54%
Senior Notes | 4.000 percent thirty-year 2013 senior notes
Debt Instrument [Line Items]
Stated interest rate	4.00%
Debt term	30 years
Amount	$ 325		$ 325
Effective Interest Rate	4.10%		4.10%
Senior Notes | 4.625 percent thirty-year 2014 senior notes
Debt Instrument [Line Items]
Stated interest rate	4.625%
Debt term	30 years
Amount	$ 177		$ 650
Effective Interest Rate	4.67%		4.67%
Senior Notes | 4.625 percent thirty-year 2015 senior notes
Debt Instrument [Line Items]
Stated interest rate	4.625%
Debt term	30 years
Amount	$ 1,963		$ 4,150
Effective Interest Rate	4.69%		4.69%
Bank borrowings
Debt Instrument [Line Items]
Amount	$ 83		$ 125
Effective Interest Rate	1.94%		3.99%
Capital lease obligations
Debt Instrument [Line Items]
Capital lease obligations	$ 10		$ 21
Effective Interest Rate	6.39%		4.46%

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Financing Arrangements , Long-term Debt Maturities (Details) $ in Millions	Apr. 26, 2019 USD ($)
Long-term Debt, Fiscal Year Maturity
2020	$ 838
2021	2,747
2022	3,258
2023	2,862
2024	1,161
Thereafter	14,524
Total debt	25,390
Less: Current debt obligations	838
Long-term debt	$ 24,552

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Derivatives and Currency Exchange Risk Management , Freestanding Derivative Contracts and Cash Flow Hedges (Details) - USD ($)	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) relating to ineffectiveness of cash flow hedges	$ 0	$ 0	$ 0
Gains (losses) relating to ineffectiveness of forward starting interest rate derivative instruments			0
After-tax net unrealized gains (losses)	194,000,000	(207,000,000)
Cash flow hedge unrealized gains to be reclassified over the next twelve months, net of tax	175,000,000
Currency exchange rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gross notional amount	11,100,000,000	11,500,000,000
Currency exchange rate contracts | Derivatives not designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Gross notional amount	4,300,000,000	5,200,000,000
Currency exchange rate contracts | Derivatives designated as hedging instruments | Cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gross notional amount	6,800,000,000	$ 6,300,000,000
Derivative term		2 years
Total return swaps | Derivatives not designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Gross notional amount	$ 191,000,000	$ 210,000,000
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Market value of derivative instruments - unrealized gains recorded in accumulated other comprehensive loss			21,000,000
Interest rate swaps | Derivatives designated as hedging instruments | Cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount terminated			$ 300,000,000
Weighted average fixed rate of interest rate derivatives			3.10%

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Derivatives and Currency Exchange Risk Management , Derivative Gains (Losses) Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Total	$ 236	$ (226)	$ 54
Currency exchange rate contracts | Other operating expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Total	218	(253)	54
Total return swaps | Other operating expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Total	$ 18	$ 27	$ 0

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Derivatives and Currency Exchange Risk Management , Gross Gains (Losses) Recognized in AOCI and Recognized in Income (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Recognized in AOCI, Cash flow hedges	$ 401	$ (218)	$ 127
Recognized in AOCI, Net investment hedges	88	0	0
Currency exchange rate contracts | Cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Recognized in AOCI, Cash flow hedges	615	(404)	342
Currency exchange rate contracts | Net investment hedges
Derivative Instruments, Gain (Loss) [Line Items]
Recognized in AOCI, Net investment hedges	88	0	0
Currency exchange rate contracts | Other operating expense, net | Cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Recognized in Income, Cash flow hedges	108	(69)	173
Currency exchange rate contracts | Other operating expense, net | Net investment hedges
Derivative Instruments, Gain (Loss) [Line Items]
Recognized in Income, Net investment hedges	$ 12	$ 0	$ 0

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Derivatives and Currency Exchange Risk Management , Net Investment Hedges and Fair Value Hedges (Details) - USD ($)	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Derivative [Line Items]
After-tax net unrealized gains (losses)	$ (169,000,000)	$ (257,000,000)
Net investment hedge unrealized gains or losses to be reclassified over the next twelve months, net of tax	0
Gains (losses) hedge ineffectiveness on net investment hedges	0	0	$ 0
Gains (losses) on firm commitments that no longer qualify as net investment hedges	0	0	0
Face value of debt	25,000,000,000.0	24,500,000,000
Gains (losses) hedge ineffectiveness on fair value hedges	0	0	0
Gains (losses) on firm commitments that no longer qualify as fair value hedges	0	0	$ 0
Senior Notes | 4.125 percent ten-year 2011 senior notes
Derivative [Line Items]
Face value of debt	$ 500,000,000	$ 500,000,000
Stated interest rate	4.125%	4.125%
Senior Notes | 3.125 percent ten-year 2012 senior notes
Derivative [Line Items]
Face value of debt	$ 675,000,000	$ 675,000,000
Stated interest rate	3.125%	3.125%
Currency exchange rate contracts
Derivative [Line Items]
Gross notional amount	$ 11,100,000,000	$ 11,500,000,000
Net investment hedges | Derivatives designated as hedging instruments | Currency exchange rate contracts
Derivative [Line Items]
Gross notional amount	7,800,000,000
Fair value hedges | Derivatives designated as hedging instruments | Interest rate swaps
Derivative [Line Items]
Gross notional amount	1,200,000,000	1,200,000,000
Unrealized gain (loss) on interest rate fair value hedging instruments	$ 9,000,000	$ (6,000,000)

XML

Derivatives and Currency Exchange Risk Management , Balance Sheet Presentation (Details) - USD ($) $ in Millions	Apr. 26, 2019	Apr. 27, 2018
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 365	$ 118
Derivative Liabilities	19	258
Currency exchange rate contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	335	79
Derivative Liabilities	19	238
Interest rate contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	9	8
Derivative Liabilities		14
Total return swaps
Derivatives, Fair Value [Line Items]
Derivative Assets	15	4
Stock warrants
Derivatives, Fair Value [Line Items]
Derivative Assets		21
Cross-currency interest rate contracts
Derivatives, Fair Value [Line Items]
Derivative Assets	6	6
Derivative Liabilities		6
Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	321	56
Derivative Liabilities	2	227
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other current assets
Derivatives, Fair Value [Line Items]
Derivative Assets	234	37
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other assets
Derivatives, Fair Value [Line Items]
Derivative Assets	78	11
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other accrued expenses
Derivatives, Fair Value [Line Items]
Derivative Liabilities	1	162
Derivatives designated as hedging instruments | Currency exchange rate contracts | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	1	51
Derivatives designated as hedging instruments | Interest rate contracts | Other assets
Derivatives, Fair Value [Line Items]
Derivative Assets	9	8
Derivatives designated as hedging instruments | Interest rate contracts | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	14
Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	44	62
Derivative Liabilities	17	31
Derivatives not designated as hedging instruments | Currency exchange rate contracts | Other current assets
Derivatives, Fair Value [Line Items]
Derivative Assets	23	31
Derivatives not designated as hedging instruments | Currency exchange rate contracts | Other accrued expenses
Derivatives, Fair Value [Line Items]
Derivative Liabilities	17	25
Derivatives not designated as hedging instruments | Total return swaps | Other current assets
Derivatives, Fair Value [Line Items]
Derivative Assets	15	4
Derivatives not designated as hedging instruments | Total return swaps | Other accrued expenses
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	0
Derivatives not designated as hedging instruments | Stock warrants | Other assets
Derivatives, Fair Value [Line Items]
Derivative Assets		21
Derivatives not designated as hedging instruments | Stock warrants | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities		0
Derivatives not designated as hedging instruments | Cross-currency interest rate contracts | Other assets
Derivatives, Fair Value [Line Items]
Derivative Assets	6	6
Derivatives not designated as hedging instruments | Cross-currency interest rate contracts | Other liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	$ 0	$ 6

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Derivatives and Currency Exchange Risk Management , Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Apr. 26, 2019	Apr. 27, 2018
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	$ 335	$ 79
Derivative liabilities	19	238
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	30	39
Derivative liabilities	$ 0	$ 20

XML

Derivatives and Currency Exchange Risk Management , Offsetting of Assets and Liabilities (Details) - USD ($) $ in Millions	Apr. 26, 2019	Apr. 27, 2018
Derivative assets:
Gross Amount of Recognized Assets (Liabilities)	$ 365	$ 118
Gross Amount Not Offset on the Balance Sheet, Financial Instruments	(9)	(71)
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted	(44)	0
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted	0	0
Net Amount	312	47
Derivative liabilities:
Gross Amount of Recognized Assets (Liabilities)	(19)	(258)
Gross Amount Not Offset on the Balance Sheet, Financial Instruments	9	71
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted	0	0
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted	0	76
Net Amount	(10)	(111)
Total
Gross Amount of Recognized Assets (Liabilities)	346	(140)
Gross Amount Not Offset on the Balance Sheet, Financial Instruments	0	0
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted	(44)	0
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted	0	76
Net Amount	302	(64)
Currency exchange rate contracts
Derivative assets:
Gross Amount of Recognized Assets (Liabilities)	335	79
Gross Amount Not Offset on the Balance Sheet, Financial Instruments	(9)	(61)
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted	(43)	0
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted	0	0
Net Amount	283	18
Derivative liabilities:
Gross Amount of Recognized Assets (Liabilities)	(19)	(238)
Gross Amount Not Offset on the Balance Sheet, Financial Instruments	9	61
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted	0	0
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted	0	74
Net Amount	(10)	(103)
Interest rate contracts
Derivative assets:
Gross Amount of Recognized Assets (Liabilities)	9	8
Gross Amount Not Offset on the Balance Sheet, Financial Instruments	0	(6)
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted	(1)	0
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted	0	0
Net Amount	8	2
Derivative liabilities:
Gross Amount of Recognized Assets (Liabilities)		(14)
Gross Amount Not Offset on the Balance Sheet, Financial Instruments		6
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted		0
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted		2
Net Amount		(6)
Total return swaps
Derivative assets:
Gross Amount of Recognized Assets (Liabilities)	15	4
Gross Amount Not Offset on the Balance Sheet, Financial Instruments	0	0
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted	0	0
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted	0	0
Net Amount	15	4
Stock warrants
Derivative assets:
Gross Amount of Recognized Assets (Liabilities)		21
Gross Amount Not Offset on the Balance Sheet, Financial Instruments		0
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted		0
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted		0
Net Amount		21
Cross-currency interest rate contracts
Derivative assets:
Gross Amount of Recognized Assets (Liabilities)	6	6
Gross Amount Not Offset on the Balance Sheet, Financial Instruments	0	(4)
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted	0	0
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted	0	0
Net Amount	$ 6	2
Derivative liabilities:
Gross Amount of Recognized Assets (Liabilities)		(6)
Gross Amount Not Offset on the Balance Sheet, Financial Instruments		4
Gross Amount Not Offset on the Balance Sheet, Cash Collateral (Received) Posted		0
Gross Amount Not Offset on the Balance Sheet, Securities Collateral (Received) Posted		0
Net Amount		$ (2)

XML

Derivatives and Currency Exchange Risk Management , Concentrations of Credit Risk (Details) - USD ($) $ in Millions	Apr. 26, 2019	Apr. 27, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Net cash collateral received	$ 44	$ 0
Net securities collateral posted	$ 0	$ 76

XML

Inventories (Details) - USD ($) $ in Millions	Apr. 26, 2019	Apr. 27, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 2,476	$ 2,407
Work-in-process	572	496
Raw materials	705	676
Total	$ 3,753	$ 3,579

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Goodwill and Other Intangible Assets , Changes in Goodwill (Details) - USD ($)	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 39,543,000,000	$ 38,515,000,000
Goodwill as a result of acquisitions	1,510,000,000	52,000,000
Purchase accounting adjustments		54,000,000
Currency translation and other	(1,094,000,000)	922,000,000
Goodwill, ending balance	39,959,000,000	39,543,000,000	$ 38,515,000,000
Goodwill impairment	0	0	0
Cardiac and Vascular Group
Goodwill [Roll Forward]
Goodwill, beginning balance	6,791,000,000	6,651,000,000
Goodwill as a result of acquisitions	165,000,000	6,000,000
Purchase accounting adjustments		54,000,000
Currency translation and other	(102,000,000)	80,000,000
Goodwill, ending balance	6,854,000,000	6,791,000,000	6,651,000,000
Minimally Invasive Therapies Group
Goodwill [Roll Forward]
Goodwill, beginning balance	21,155,000,000	20,411,000,000
Goodwill as a result of acquisitions	83,000,000	10,000,000
Purchase accounting adjustments		0
Currency translation and other	(857,000,000)	734,000,000
Goodwill, ending balance	20,381,000,000	21,155,000,000	20,411,000,000
Restorative Therapies Group
Goodwill [Roll Forward]
Goodwill, beginning balance	9,717,000,000	9,600,000,000
Goodwill as a result of acquisitions	1,238,000,000	9,000,000
Purchase accounting adjustments		0
Currency translation and other	(134,000,000)	108,000,000
Goodwill, ending balance	10,821,000,000	9,717,000,000	9,600,000,000
Diabetes Group
Goodwill [Roll Forward]
Goodwill, beginning balance	1,880,000,000	1,853,000,000
Goodwill as a result of acquisitions	24,000,000	27,000,000
Purchase accounting adjustments		0
Currency translation and other	(1,000,000)	0
Goodwill, ending balance	$ 1,903,000,000	$ 1,880,000,000	$ 1,853,000,000

XML

Goodwill and Other Intangible Assets , Intangible Assets (Details) - USD ($)	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 29,004,000,000	$ 29,434,000,000
Accumulated Amortization	(9,048,000,000)	(8,201,000,000)
Impairment of finite-lived intangible assets	87,000,000	0	$ 0
Impairment of indefinite-lived intangible assets	30,000,000	68,000,000	$ 0
IPR&D
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived Intangible Assets	604,000,000	490,000,000
Customer-related
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	16,944,000,000	16,949,000,000
Accumulated Amortization	(4,095,000,000)	(3,139,000,000)
Purchased technology and patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	11,405,000,000	11,569,000,000
Accumulated Amortization	(4,570,000,000)	(4,441,000,000)
Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	570,000,000	822,000,000
Accumulated Amortization	(324,000,000)	(569,000,000)
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	85,000,000	94,000,000
Accumulated Amortization	(59,000,000)	$ (52,000,000)
Cardiac and Vascular Group
Finite-Lived Intangible Assets [Line Items]
Impairment of finite-lived intangible assets	61,000,000
Impairment of indefinite-lived intangible assets	9,000,000
Restorative Therapies Group
Finite-Lived Intangible Assets [Line Items]
Impairment of finite-lived intangible assets	26,000,000
Impairment of indefinite-lived intangible assets	11,000,000
Minimally Invasive Therapies Group
Finite-Lived Intangible Assets [Line Items]
Impairment of indefinite-lived intangible assets	$ 10,000,000

XML

Goodwill and Other Intangible Assets , Amortization Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 1,764	$ 1,823	$ 1,980
2020	1,741
2021	1,724
2022	1,684
2023	1,615
2024	$ 1,574

XML

Property, Plant, and Equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Property, Plant and Equipment [Line Items]
Property, plant, and equipment	$ 10,920	$ 10,259
Less: Accumulated depreciation	(6,245)	(5,655)
Property, plant, and equipment, net	4,675	4,604
Depreciation expense	895	821	$ 937
Equipment
Property, Plant and Equipment [Line Items]
Property, plant, and equipment	$ 5,519	5,171
Property, plant, and equipment, useful life	15 years
Equipment | Minimum
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, useful life	2 years
Equipment | Maximum
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, useful life	7 years
Computer software
Property, Plant and Equipment [Line Items]
Property, plant, and equipment	$ 1,842	1,578
Computer software | Maximum
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, useful life	5 years
Land and land improvements
Property, Plant and Equipment [Line Items]
Property, plant, and equipment	$ 181	187
Land and land improvements | Maximum
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, useful life	20 years
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant, and equipment	$ 2,267	2,265
Buildings and leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, useful life	40 years
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant, and equipment	$ 1,111	$ 1,058

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Shareholders' Equity (Details)	12 Months Ended		23 Months Ended
	Apr. 26, 2019 USD ($) $ / shares shares	Apr. 27, 2018 $ / shares shares	Apr. 26, 2019 USD ($) $ / shares shares	Apr. 26, 2019 € / shares	Mar. 31, 2019 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2015 shares
Class of Stock [Line Items]
Common stock, authorized (in shares)	2,600,000,000	2,600,000,000	2,600,000,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.0001	$ 0.0001	$ 0.0001
Deferred stock, shares authorized (in shares)	40,000		40,000
Deferred stock, par value (in euros per share) | € / shares				€ 1.00
Preferred stock, authorized (in shares)	127,500,000		127,500,000
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.20		$ 0.20
Deferred stock, issued (in shares)	0		0
Deferred stock, outstanding (in shares)	0		0
Preferred stock, issued (in shares)	0		0
Preferred stock, outstanding (in shares)	0		0
June 2015 Share Repurchase Program
Class of Stock [Line Items]
Shares repurchased (in shares)	31,000,000	25,000,000
Average repurchase price (in dollars per share) | $ / shares	$ 91.43	$ 83.71
Common stock authorized to be repurchased (in shares)							80,000,000
Number of shares repurchased to date (in shares)		13,000,000
June 2017 Share Repurchase Program
Class of Stock [Line Items]
Amount authorized for repurchase | $	$ 11,000,000,000.0		$ 11,000,000,000.0			$ 5,000,000,000.0
Incremental amount authorized for repurchase | $					$ 6,000,000,000.0
Amount repurchased | $			3,800,000,000
Amount available for future repurchases | $	$ 7,200,000,000		$ 7,200,000,000
Series A Preferred Shares
Class of Stock [Line Items]
Preferred stock, authorized (in shares)	500,000		500,000
Preferred stock, par value (in dollars per share) | $ / shares	$ 1.00		$ 1.00
Preferred stock, outstanding (in shares)	1,872		1,872

XML

Stock Purchase and Award Plans , Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
Vesting period	4 years
Unrecognized compensation expense related to outstanding stock options	$ 67
Weighted average period over which unrecognized compensation is expected to be recognized	2 years 6 months
Performance-based share options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding (in shares)	0
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Awards outstanding (in shares)	7,996,000	8,236,000
Weighted average period over which unrecognized compensation is expected to be recognized	2 years 6 months
Unrecognized compensation expense related to restricted stock awards	$ 353
Performance-based restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
The discount rate from market value on purchase date	15.00%
Minimum employee contribution rate	2.00%
Maximum employee contribution rate	10.00%
Purchase price of common stock as a percentage of its fair market value	85.00%
Shares purchased by employees (in shares)	2,000,000
Average purchase price (in dollars per share)	$ 77.74
Amount withheld to purchase common stock	$ 12
Shares available for future purchase (in shares)	13,000,000
2013 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants (in shares)	51,000,000

XML

Stock Purchase and Award Plans , Valuation Assumptions (Details) - $ / shares	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Share-based Payment Arrangement [Abstract]
Weighted average fair value of options granted (in dollars per share)	$ 14.77	$ 13.71	$ 14.70
Assumptions used:
Expected life (years)	6 years 1 month 6 days	6 years 1 month 28 days	6 years 2 months 4 days
Risk-free interest rate	2.90%	2.00%	1.26%
Volatility	17.77%	19.51%	21.07%
Dividend yield	2.25%	2.19%	1.97%

XML

Stock Purchase and Award Plans , Stock-based Compensation Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 290	$ 344	$ 348
Income tax benefits	(54)	(82)	(98)
Total stock-based compensation expense, net of tax	236	262	250
Cost of products sold
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	30	44	49
Research and development expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	36	38	41
Selling, general, and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	224	262	256
Restructuring charges, net
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	0	0	2
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	72	132	157
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	189	185	169
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 29	$ 27	$ 22

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Stock Purchase and Award Plans , Stock Options Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Options
Outstanding at beginning of period (in shares)	41,039
Granted (in shares)	5,407
Exercised (in shares)	(13,767)
Expired/Forfeited (in shares)	(1,002)
Outstanding at end of period (in shares)	31,677	41,039
Options, Vested and expected to vest (in shares)	9,086
Options, Exercisable (in shares)	22,102
Wtd. Avg. Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 66.56
Granted (in dollars per share)	89.05
Exercised (in dollars per share)	62.76
Expired/Forfeited (in dollars per share)	83.17
Outstanding at end of period (in dollars per share)	71.52	$ 66.56
Weighted Average Exercise Price, Vested and expected to vest (in dollars per share)	86.54
Weighted Average Exercise Price, Exercisable (in dollars per share)	$ 65.01
Additional Disclosures
Weighted Average Remaining Contractual Term, Outstanding	5 years 10 months 28 days
Weighted Average Remaining Contractual Term, Vested and expected to vest	8 years 5 months 15 days
Weighted Average Remaining Contractual Term, Exercisable	4 years 9 months 21 days
Aggregate Intrinsic Value, Outstanding	$ 512
Aggregate Intrinsic Value, Vested and expected to vest	16
Aggregate Intrinsic Value, Exercisable	495
Cash proceeds from options exercised	825	$ 250	$ 367
Intrinsic value of options exercised	383	248	403
Tax benefit related to options exercised	$ 78	$ 75	$ 140

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Stock Purchase and Award Plans , Restricted Stock Award Activity (Details) - Restricted stock - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Units
Nonvested at beginning of period (in shares)	8,236
Granted (in shares)	2,812
Vested (in shares)	(2,397)
Forfeited (in shares)	(655)
Nonvested at end of period (in shares)	7,996	8,236
Wtd. Avg. Grant Price
Nonvested at beginning of period (in dollars per share)	$ 83.35
Granted (in dollars per share)	88.78	$ 83.88	$ 85.07
Vested (in dollars per share)	72.78
Forfeited (in dollars per share)	83.73
Nonvested at end of period (in dollars per share)	$ 88.40	$ 83.35
Fair value of restricted stock vested	$ 174	$ 160	$ 131
Tax benefit related to restricted stock vested	$ 45	$ 63	$ 76

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Income Taxes , Components of Income Before Income Taxes, Based on Jurisdiction (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Income Tax Disclosure [Abstract]
U.S.	$ 877	$ (958)	$ (234)
International	4,320	6,633	4,836
Income (loss) before income taxes	$ 5,197	$ 5,675	$ 4,602

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Income Taxes , Income Tax Provision (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Current tax expense:
U.S.	$ 579	$ 2,899	$ 614
International	406	796	840
Total current tax expense	985	3,695	1,454
Deferred tax expense (benefit):
U.S.	(310)	45	(399)
International	(128)	(1,160)	(477)
Net deferred tax benefit	(438)	(1,115)	(876)
Income tax provision	$ 547	$ 2,580	$ 578

XML

Income Taxes , Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017	Apr. 29, 2016
Operating Loss Carryforwards [Line Items]
Cumulative income tax charge associated with the Tax Act	$ 2,400
Tax Cuts and Jobs Act of 2017, total transition tax charge	2,400
Tax Cuts and Jobs Act of 2017, charge resulting from removal of permanent reinvestment assertion	118
Tax Cuts and Jobs Act of 2017, remeasure of deferred tax assets and liabilities, provisional tax benefit	(75)
Undistributed earnings from non-U.S. subsidiaries	64,100	$ 61,000
Tax credit carryforward	178
Tax credit carryforward, no expiration	66
Valuation allowance	6,300	7,166
Income tax settlements and adjustments	(40)	1,900	$ 202
Tax Cuts and Jobs Act of 2017, measurement period adjustment, net benefit	30
Tax Cuts and Jobs Act of 2017, charge related to recognition of prepaid tax expense	42
Benefit related to intercompany legal entity restructuring	32
Tax charge (benefit) related to tax effect from divestiture	(20)		125
Net charge associated with U.S. tax reform		2,400
Charge associated with internal reorganization of certain foreign subsidiaries		73
Tax benefit from intercompany sale of intellectual property		579
Charge associated with IRS resolution			404
Charge associated with disallowance of net operating losses			86
Charge recognized for redemption of intercompany minority interest			18
Benefit recognized from resolution of intercompany debt issues			431
Tax reductions from tax holiday	437	446	475
Gross unrecognized tax benefits	1,836	1,727	1,896	$ 2,703
Unrecognized tax benefits that would impact effective tax rate	1,800	1,700	1,800
Gross unrecognized tax benefits, net of cash advance, noncurrent liability	977
Accrued income tax penalties and interest	172	128	360
Interest expense (income)	48	84	$ (208)
Internal Revenue Service (IRS) | 2005 through 2014
Operating Loss Carryforwards [Line Items]
Advance payment in connection with certain tax matters		1,100
Tax resolutions		859
Interest		$ 285
Non-U.S. Tax Authorities
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	26,200
Net operating loss carryforwards, no expiration	22,900
Net operating loss carryforwards, expiring in future years	3,300
Net operating loss carryforwards, valuation allowance	$ 8,100
Impact on diluted earnings per share (in dollars per share)	$ 0.32	$ 0.33	$ 0.34
Non-U.S. Tax Authorities | Subsidiaries
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 18,100
U.S. Tax Authority
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	682
State and Local Tax Authorities
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 1,300

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Income Taxes , Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Apr. 26, 2019	Apr. 27, 2018
Deferred tax assets:
Net operating loss, capital loss, and credit carryforwards	$ 6,574	$ 7,463
Other accrued liabilities	389	410
Accrued compensation	315	209
Pension and post-retirement benefits	300	256
Stock-based compensation	162	190
Other	339	332
Inventory	194	207
Federal and state benefit on uncertain tax positions	83	67
Interest limitation	111	0
Unrealized loss on available-for-sale securities and derivative financial instruments	17	93
Gross deferred tax assets	8,484	9,227
Valuation allowance	(6,300)	(7,166)
Total deferred tax assets	2,184	2,061
Deferred tax liabilities:
Intangible assets	(1,614)	(1,697)
Realized loss on derivative financial instruments	(70)	(69)
Other	(152)	(143)
Accumulated depreciation	(38)	(38)
Outside basis difference of subsidiaries	(119)	(131)
Total deferred tax liabilities	(1,993)	(2,078)
Prepaid income taxes	363	406
Income tax receivables	335	315
Tax assets, net	889	704
Reported as (after valuation allowance and jurisdictional netting):
Other current assets	648	662
Tax assets	1,519	1,465
Deferred tax liabilities	$ (1,278)	$ (1,423)

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Income Taxes , Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Income Tax Disclosure [Abstract]
U.S. federal statutory tax rate	21.00%	30.50%	35.00%
Increase (decrease) in tax rate resulting from:
U.S. state taxes, net of federal tax benefit	0.90%	0.80%	1.00%
Research and development credit	(1.20%)	(0.80%)	(0.90%)
Puerto Rico Excise Tax	(1.60%)	(1.10%)	(1.50%)
International	(10.70%)	(18.90%)	(27.90%)
U.S. Tax Reform	0.20%	43.00%	0.00%
Stock based compensation	(1.00%)	(1.00%)	0.00%
Other, net	(0.20%)	3.00%	(1.00%)
Divestiture related	0.00%	(3.80%)	0.00%
Certain tax adjustments	(1.00%)	(8.90%)	4.40%
U.S. tax on foreign earnings	4.10%	2.70%	3.50%
Effective tax rate	10.50%	45.50%	12.60%

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Income Taxes , Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Gross unrecognized tax benefits at beginning of fiscal year	$ 1,727	$ 1,896	$ 2,703
Gross increases:
Prior year tax positions	34	13	147
Current year tax positions	109	63	75
Acquisitions	0	0	4
Gross decreases:
Prior year tax positions	(14)	(120)	(538)
Settlements	0	(80)	(467)
Statute of limitation lapses	(20)	(45)	(28)
Gross unrecognized tax benefits at end of fiscal year	1,836	1,727	1,896
Cash advance paid to taxing authorities	(859)	(859)	0
Gross unrecognized tax benefits at end of fiscal year, net of cash advance	$ 977	$ 868	$ 1,896

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Apr. 26, 2019	Jan. 25, 2019	Oct. 26, 2018	Jul. 27, 2018	Apr. 27, 2018	Jan. 26, 2018	Oct. 27, 2017	Jul. 28, 2017	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Numerator:
Net income attributable to ordinary shareholders	$ 1,172	$ 1,269	$ 1,115	$ 1,075	$ 1,460	$ (1,389)	$ 2,017	$ 1,016	$ 4,631	$ 3,104	$ 4,028
Denominator:
Basic - weighted average shares outstanding (in shares)									1,346.4	1,356.7	1,378.9
Effect of dilutive securities:
Employee stock options (in shares)									7.6	7.9	9.0
Employee restricted stock units (in shares)									3.2	3.3	3.4
Other (in shares)									0.3	0.3	0.1
Diluted – weighted average shares outstanding (in shares)									1,357.5	1,368.2	1,391.4
Basic earnings per share (in dollars per share)	$ 0.87	$ 0.95	$ 0.83	$ 0.79	$ 1.08	$ (1.03)	$ 1.49	$ 0.75	$ 3.44	$ 2.29	$ 2.92
Diluted earnings per share (in dollars per share)	$ 0.87	$ 0.94	$ 0.82	$ 0.79	$ 1.07	$ (1.03)	$ 1.48	$ 0.74	$ 3.41	$ 2.27	$ 2.89
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares excluded from computation of earnings per share (in shares)									7.0	10.0	7.0

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Retirement Benefit Plans , Additional Information (Details) $ in Millions	12 Months Ended
	Apr. 26, 2019 USD ($) fund	Apr. 27, 2018 USD ($)	Apr. 28, 2017 USD ($)	May 01, 2019 plan	May 01, 2005 plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Cost of retirement benefit plans	$ 539	$ 552	$ 602
Underfunded status of the plan	$ 1,100	942
Special termination benefits, defined contribution plan			4
Cash payments and administrative fees			2
Number of funds in process of liquidation | fund	0
Expense under defined contribution plans	$ 415	374	347
Treasury bond rate of guaranteed rate of return	10 years
Personal Pension Account
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expense under defined contribution plans	$ 54	56	58
Medtronic Core Contribution
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expense under defined contribution plans	$ 58	49	45
Partnerships | Minimum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Range of notice period	45 days
Partnerships | Maximum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Range of notice period	95 days
Private equity fund
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Private equity funds, unfunded commitments	$ 337
Private equity funds, estimated minimum liquidation period	1 year
Private equity funds, estimated maximum liquidation period	15 years
Real asset investments | Minimum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Real asset investments, estimated liquidation and redemption period	30 days
Real asset investments | Maximum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Real asset investments, estimated liquidation and redemption period	10 years
Real estate investments
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of funds in process of liquidation | fund	0
U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of new plans created | plan					2
Pension benefits | U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Underfunded status of the plan	$ 676	541
Special termination benefits, defined benefit plan	0	0	60
Defined benefit plan, future amortization of net actuarial loss	$ 57
Target allocations	100.00%
Employer contributions	$ 93	215
Estimated future employer contributions in next fiscal year	93
Post-retirement benefit plans, net periodic benefit cost (benefit)	100	127	180
Post-retirement benefit plans, benefit obligations	3,404	3,202	3,232
Post-retirement benefit plans, fair value of plan assets	$ 2,728	2,661	2,479
Pension benefits | U.S. | Equity
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Target allocations	49.00%
Pension benefits | U.S. | Debt
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Target allocations	32.00%
Pension benefits | U.S. | Other
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Target allocations	19.00%
Pension benefits | Non-U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Underfunded status of the plan	$ 423	387
Special termination benefits, defined benefit plan	0	0	0
Defined benefit plan, future amortization of net actuarial loss	13
Employer contributions	78	90
Estimated future employer contributions in next fiscal year	60
Post-retirement benefit plans, net periodic benefit cost (benefit)	41	60	64
Post-retirement benefit plans, benefit obligations	1,832	1,791	1,734
Post-retirement benefit plans, fair value of plan assets	$ 1,409	1,404	1,235
Pension benefits | Non-U.S. | Equity
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Target allocations	38.00%
Pension benefits | Non-U.S. | Debt
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Target allocations	30.00%
Pension benefits | Non-U.S. | Other
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Target allocations	32.00%
Other post-retirement benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Post-retirement benefit plans, net periodic benefit cost (benefit)	$ (17)	(9)	11
Post-retirement benefit plans, benefit obligations	323	317
Post-retirement benefit plans, fair value of plan assets	$ 297	$ 303
Other post-retirement benefits | U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Special termination benefits, defined benefit plan			7
Cost Synergies
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Incremental defined benefit pension and post-retirement related expenses for employees that accepted voluntary early retirement packages			$ 73
Subsequent Event | Pension benefits | U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of new plans after plan split | plan				2

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Retirement Benefit Plans , Change in Benefit Obligation and Funded Status (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017	Apr. 26, 2019	Apr. 27, 2018
Funded status at end of year:
Underfunded status of the plans				$ (1,100)	$ (942)
Amounts recognized on the consolidated balance sheets consist of:
Non-current liabilities				(1,651)	(1,425)
Pension benefits
Plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation				4,683	4,110
Projected benefit obligation				4,822	4,282
Plan assets at fair value				3,829	3,472
Plans with projected benefit obligations in excess of plan assets
Projected benefit obligation				4,963	4,736
Plan assets at fair value				3,833	3,793
U.S. Pension Benefits | Pension benefits
Defined Benefit Plan Disclosure [Line items]
Accumulated benefit obligation at end of year				3,121	2,943
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$ 3,202	$ 3,232
Service cost	109	116	$ 117
Interest cost	129	117	109
Employee contributions	0	0
Plan curtailments and settlements	0	(168)
Actuarial loss (gain)	54	12
Benefits paid	(100)	(107)
Currency exchange rate changes and other	10	0
Divestiture	0	0
Projected benefit obligation at end of year	3,404	3,202	3,232
Change in plan assets:
Fair value of plan assets at beginning of year	2,661	2,479
Actual return on plan assets	64	243
Employer contributions	93	215
Employee contributions	0	0
Plan settlements	0	(168)
Benefits paid	(100)	(108)
Currency exchange rate changes and other	10	0
Divestiture	0	0
Fair value of plan assets at end of year	2,728	2,661	2,479
Funded status at end of year:
Fair value of plan assets	2,661	2,479	2,479	2,728	2,661
Benefit obligations	3,404	3,232	3,232	3,404	3,202
Underfunded status of the plans				(676)	(541)
Recognized liability				(676)	(541)
Amounts recognized on the consolidated balance sheets consist of:
Non-current assets				0	0
Current liabilities				(18)	(17)
Non-current liabilities				(658)	(524)
Recognized liability				(676)	(541)
Amounts recognized in accumulated other comprehensive loss:
Prior service cost (benefit)				2	2
Net actuarial loss				1,216	1,088
Ending balance				1,218	1,090
Non-U.S. Pension Benefits | Pension benefits
Defined Benefit Plan Disclosure [Line items]
Accumulated benefit obligation at end of year				1,621	1,580
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	1,791	1,734
Service cost	59	67	70
Interest cost	30	28	26
Employee contributions	12	12
Plan curtailments and settlements	(5)	(8)
Actuarial loss (gain)	119	(74)
Benefits paid	(49)	(51)
Currency exchange rate changes and other	(125)	146
Divestiture	0	(63)
Projected benefit obligation at end of year	1,832	1,791	1,734
Change in plan assets:
Fair value of plan assets at beginning of year	1,404	1,235
Actual return on plan assets	62	67
Employer contributions	78	90
Employee contributions	12	13
Plan settlements	(3)	(4)
Benefits paid	(49)	(51)
Currency exchange rate changes and other	(95)	108
Divestiture	0	(54)
Fair value of plan assets at end of year	1,409	1,404	1,235
Funded status at end of year:
Fair value of plan assets	1,409	1,235	1,235	1,409	1,404
Benefit obligations	$ 1,791	$ 1,791	$ 1,734	1,832	1,791
Underfunded status of the plans				(423)	(387)
Recognized liability				(423)	(387)
Amounts recognized on the consolidated balance sheets consist of:
Non-current assets				31	16
Current liabilities				(8)	(8)
Non-current liabilities				(446)	(395)
Recognized liability				(423)	(387)
Amounts recognized in accumulated other comprehensive loss:
Prior service cost (benefit)				(7)	(9)
Net actuarial loss				452	380
Ending balance				$ 445	$ 371

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Retirement Benefit Plans , Net Periodic Cost and AOCI (Details) - Pension benefits - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
U.S. Pension Benefits
Net Periodic Benefit Cost
Service cost	$ 109	$ 116	$ 117
Interest cost	129	117	109
Expected return on plan assets	(215)	(205)	(195)
Amortization of prior service cost	1	1	1
Amortization of net actuarial loss	76	82	88
Settlement loss (gain)	0	16	0
Special termination benefits	0	0	60
Net periodic benefit cost	100	127	180
Amounts Recognized in AOCI
Net actuarial gain	205
Amortization of prior service cost	(1)
Amortization of net actuarial loss	(76)
Effect of exchange rates	0
Total recognized in accumulated other comprehensive loss	128
Total recognized in net periodic benefit cost and accumulated other comprehensive loss	228
Non-U.S. Pension Benefits
Net Periodic Benefit Cost
Service cost	59	67	70
Interest cost	30	28	26
Expected return on plan assets	(57)	(53)	(48)
Amortization of prior service cost	(1)	0	(1)
Amortization of net actuarial loss	12	18	17
Settlement loss (gain)	(2)	0	0
Special termination benefits	0	0	0
Net periodic benefit cost	41	$ 60	$ 64
Amounts Recognized in AOCI
Net actuarial gain	113
Amortization of prior service cost	1
Amortization of net actuarial loss	(12)
Effect of exchange rates	(29)
Total recognized in accumulated other comprehensive loss	73
Total recognized in net periodic benefit cost and accumulated other comprehensive loss	$ 114

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Retirement Benefit Plans , Actuarial Assumptions and Plan Assets Target Allocations (Details) - Pension benefits	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
U.S. Pension Benefits
Critical assumptions – projected benefit obligation:
Rate of compensation increase	3.90%	3.90%	3.90%
Critical assumptions – net periodic benefit cost:
Expected return on plan assets	7.90%	7.90%	8.20%
Rate of compensation increase	3.90%	3.90%	3.90%
Plan Assets Target Allocations
Target Allocation	100.00%
Actual Allocation	100.00%	100.00%
U.S. Pension Benefits | Equity securities
Plan Assets Target Allocations
Target Allocation	49.00%
Actual Allocation	50.00%	49.00%
U.S. Pension Benefits | Debt securities
Plan Assets Target Allocations
Target Allocation	32.00%
Actual Allocation	34.00%	32.00%
U.S. Pension Benefits | Other
Plan Assets Target Allocations
Target Allocation	19.00%
Actual Allocation	16.00%	19.00%
U.S. Pension Benefits | Minimum
Critical assumptions – projected benefit obligation:
Discount rate	3.90%	4.20%	3.70%
Critical assumptions – net periodic benefit cost:
Discount rate – benefit obligation	4.20%	4.00%	3.55%
Discount rate – service cost	4.10%	3.70%	3.60%
Discount rate – interest cost	4.00%	3.45%	2.90%
U.S. Pension Benefits | Maximum
Critical assumptions – projected benefit obligation:
Discount rate	4.20%	4.35%	4.30%
Critical assumptions – net periodic benefit cost:
Discount rate – benefit obligation	4.30%	4.30%	4.30%
Discount rate – service cost	4.40%	4.45%	4.45%
Discount rate – interest cost	4.10%	3.80%	3.80%
Non-U.S. Pension Benefits
Critical assumptions – projected benefit obligation:
Rate of compensation increase	2.87%	2.88%	2.89%
Critical assumptions – net periodic benefit cost:
Expected return on plan assets	4.23%	4.20%	4.45%
Rate of compensation increase	2.88%	2.89%	2.83%
Non-U.S. Pension Benefits | Equity securities
Plan Assets Target Allocations
Target Allocation	38.00%
Non-U.S. Pension Benefits | Debt securities
Plan Assets Target Allocations
Target Allocation	30.00%
Non-U.S. Pension Benefits | Other
Plan Assets Target Allocations
Target Allocation	32.00%
Non-U.S. Pension Benefits | Minimum
Critical assumptions – projected benefit obligation:
Discount rate	0.40%	0.70%	0.45%
Critical assumptions – net periodic benefit cost:
Discount rate – benefit obligation	0.50%	0.45%	0.25%
Discount rate – service cost	0.50%	0.20%	0.05%
Discount rate – interest cost	0.50%	0.45%	0.30%
Non-U.S. Pension Benefits | Maximum
Critical assumptions – projected benefit obligation:
Discount rate	13.90%	11.00%	11.40%
Critical assumptions – net periodic benefit cost:
Discount rate – benefit obligation	11.00%	11.40%	10.20%
Discount rate – service cost	11.00%	11.40%	10.20%
Discount rate – interest cost	11.00%	11.40%	10.20%

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Retirement Benefit Plans , Fair Value Measurement (Details) - Pension benefits - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
U.S. Pension Benefits
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	$ 2,728	$ 2,661	$ 2,479
U.S. Pension Benefits | Level 1
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	289	362
U.S. Pension Benefits | Level 2
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	144	142
U.S. Pension Benefits | Level 3
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	629	537
U.S. Pension Benefits | Investments measured at net asset value
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	1,666	1,620
U.S. Pension Benefits | Short-term investments
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	61	181
U.S. Pension Benefits | Short-term investments | Level 1
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	61	181
U.S. Pension Benefits | Short-term investments | Level 2
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
U.S. Pension Benefits | Short-term investments | Level 3
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
U.S. Pension Benefits | U.S. government securities
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	228	181
U.S. Pension Benefits | U.S. government securities | Level 1
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	228	181
U.S. Pension Benefits | U.S. government securities | Level 2
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
U.S. Pension Benefits | U.S. government securities | Level 3
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
U.S. Pension Benefits | Corporate debt securities
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	144	142
U.S. Pension Benefits | Corporate debt securities | Level 1
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
U.S. Pension Benefits | Corporate debt securities | Level 2
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	144	142
U.S. Pension Benefits | Corporate debt securities | Level 3
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
U.S. Pension Benefits | Equity commingled trusts
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	1,365	1,322
U.S. Pension Benefits | Equity commingled trusts | Level 1
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
U.S. Pension Benefits | Equity commingled trusts | Level 2
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
U.S. Pension Benefits | Equity commingled trusts | Level 3
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
U.S. Pension Benefits | Equity commingled trusts | Investments measured at net asset value
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	1,365	1,322
U.S. Pension Benefits | Fixed income commingled trusts
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	301	298
U.S. Pension Benefits | Fixed income commingled trusts | Level 1
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
U.S. Pension Benefits | Fixed income commingled trusts | Level 2
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
U.S. Pension Benefits | Fixed income commingled trusts | Level 3
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
U.S. Pension Benefits | Fixed income commingled trusts | Investments measured at net asset value
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	301	298
U.S. Pension Benefits | Partnership units
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	629	537
U.S. Pension Benefits | Partnership units | Level 1
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
U.S. Pension Benefits | Partnership units | Level 2
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
U.S. Pension Benefits | Partnership units | Level 3
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	629	537
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs
Beginning balance	537	468
Total realized losses	(1)	(42)
Total unrealized gains	52	141
Purchases and sales, net	41	(30)
Ending balance	629	537
Non-U.S. Pension Benefits
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	1,409	1,404	$ 1,235
Non-U.S. Pension Benefits | Level 1
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
Non-U.S. Pension Benefits | Level 2
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
Non-U.S. Pension Benefits | Level 3
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	41	42
Non-U.S. Pension Benefits | Investments measured at net asset value
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	1,368	1,362
Non-U.S. Pension Benefits | Registered investment companies
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	1,368	1,362
Non-U.S. Pension Benefits | Registered investment companies | Level 1
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
Non-U.S. Pension Benefits | Registered investment companies | Level 2
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
Non-U.S. Pension Benefits | Registered investment companies | Level 3
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
Non-U.S. Pension Benefits | Registered investment companies | Investments measured at net asset value
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	1,368	1,362
Non-U.S. Pension Benefits | Insurance contracts
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	41	42
Non-U.S. Pension Benefits | Insurance contracts | Level 1
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
Non-U.S. Pension Benefits | Insurance contracts | Level 2
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	0	0
Non-U.S. Pension Benefits | Insurance contracts | Level 3
Defined Benefit Plan Disclosure [Line items]
Fair value of plan assets	41	42
Reconciliation of Retirement Benefit Plan Assets Measured at Fair Value Using Significant Unobservable Inputs
Beginning balance	42	44
Total unrealized gains	1	2
Purchases and sales, net	1	(7)
Currency exchange rate changes	(3)	3
Ending balance	$ 41	$ 42

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Retirement Benefit Plans , Future Benefit Payments (Details) - Pension benefits $ in Millions	Apr. 26, 2019 USD ($)
U.S. Pension Benefits
Estimated Future Benefit Payments
2020	$ 115
2021	123
2022	133
2023	144
2024	154
2025 – 2029	954
Total	1,623
Non-U.S. Pension Benefits
Estimated Future Benefit Payments
2020	51
2021	49
2022	51
2023	57
2024	56
2025 – 2029	350
Total	$ 614

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Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Operating Leases
2020	$ 216
2021	157
2022	103
2023	61
2024	34
Thereafter	81
Total minimum lease payments	652
Rent expense for operating leases	$ 305	$ 319	$ 294

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Accumulated Other Comprehensive Loss (Details) - USD ($)	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017	Apr. 28, 2018		Apr. 29, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 50,822,000,000	$ 50,330,000,000	$ 51,977,000,000
Other comprehensive (loss) income	(975,000,000)	1,030,000,000	(744,000,000)
Cumulative effect of change in accounting principle				$ 0	[1]	$ 296,000,000	[2]
Ending balance	50,212,000,000	50,822,000,000	50,330,000,000
Unrealized (Loss) Gain on Investment Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(194,000,000)	(69,000,000)
Other comprehensive income (loss) before reclassifications	67,000,000	(95,000,000)
Reclassifications	35,000,000	(8,000,000)
Other comprehensive (loss) income	102,000,000	(103,000,000)
Cumulative effect of change in accounting principle				47,000,000		(22,000,000)
Ending balance	(45,000,000)	(194,000,000)	(69,000,000)
Other comprehensive income (loss), tax expense (benefit)	(5,000,000)	26,000,000	41,000,000
Reclassifications from AOCI, tax expense (benefit)	(3,000,000)	4,000,000	8,000,000
Cumulative Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(11,000,000)	(1,195,000,000)
Other comprehensive income (loss) before reclassifications	(1,372,000,000)	1,218,000,000
Reclassifications	0	(34,000,000)
Other comprehensive (loss) income	(1,372,000,000)	1,184,000,000
Cumulative effect of change in accounting principle				0		0
Ending balance	(1,383,000,000)	(11,000,000)	(1,195,000,000)
Other comprehensive income (loss), tax expense (benefit)	(7,000,000)
Net Investment Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(257,000,000)	(257,000,000)
Other comprehensive income (loss) before reclassifications	88,000,000	0
Reclassifications	0	0
Other comprehensive (loss) income	88,000,000	0
Cumulative effect of change in accounting principle				0		0
Ending balance	(169,000,000)	(257,000,000)	(257,000,000)
Other comprehensive income (loss), tax expense (benefit)	0	0	0
Net Change in Retirement Obligations
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,117,000,000)	(1,129,000,000)
Other comprehensive income (loss) before reclassifications	(266,000,000)	100,000,000
Reclassifications	75,000,000	67,000,000
Other comprehensive (loss) income	(191,000,000)	167,000,000
Cumulative effect of change in accounting principle				0		(155,000,000)
Ending balance	(1,308,000,000)	(1,117,000,000)	(1,129,000,000)
Other comprehensive income (loss), tax expense (benefit)	(63,000,000)	14,000,000	41,000,000
Reclassifications from AOCI, tax expense (benefit)	(19,000,000)	(27,000,000)	(23,000,000)
Unrealized (Loss) Gain on Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(207,000,000)	37,000,000
Other comprehensive income (loss) before reclassifications	457,000,000	(272,000,000)
Reclassifications	(56,000,000)	54,000,000
Other comprehensive (loss) income	401,000,000	(218,000,000)
Cumulative effect of change in accounting principle				0		(26,000,000)
Ending balance	194,000,000	(207,000,000)	37,000,000
Other comprehensive income (loss), tax expense (benefit)	158,000,000	(132,000,000)	130,000,000
Reclassifications from AOCI, tax expense (benefit)	24,000,000	(22,000,000)	61,000,000
Total Accumulated Other Comprehensive (Loss) Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,786,000,000)	(2,613,000,000)	(1,868,000,000)
Other comprehensive income (loss) before reclassifications	(1,026,000,000)	951,000,000
Reclassifications	54,000,000	79,000,000
Other comprehensive (loss) income	(972,000,000)	1,030,000,000	(745,000,000)
Cumulative effect of change in accounting principle				$ 47,000,000	[1]	$ (203,000,000)	[2]
Ending balance	$ (2,711,000,000)	$ (1,786,000,000)	$ (2,613,000,000)

[1] See Note 1 to the consolidated financial statements for discussion regarding the adoption of accounting standards during fiscal year 2019.

[2] The cumulative effect of change in accounting principle in fiscal year 2018 resulted from the adoption of accounting guidance that requires the tax effect of intra-entity transactions, other than sales of inventory, to be recognized when the transaction occurs, and accounting guidance which permitted reclassification of stranded tax effects resulting from the enactment of comprehensive U.S. tax legislation from accumulated other comprehensive loss to retained earnings.

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Commitments and Contingencies (Details) $ in Millions					1 Months Ended	12 Months Ended
	Jun. 01, 2019 claim	Nov. 28, 2018 USD ($)	Dec. 14, 2011 patent	Jun. 29, 2007	May 31, 2017 claim	Apr. 26, 2019 USD ($) subsidiary manufacturer claim landfill	Apr. 29, 2016 USD ($) claim	Apr. 27, 2018 USD ($)
Loss Contingencies [Line Items]
Accrued litigations charges | $						$ 500		$ 900
Covidien plc
Loss Contingencies [Line Items]
Tax sharing percentage, parent				42.00%
Tax sharing percentage, former parent				27.00%
Tax sharing percentage, former affiliate				31.00%
Orrington, Maine Chemical Manufacturing Facility
Loss Contingencies [Line Items]
Number of landfills requiring removal | landfill						2
Number of landfills requiring capping | landfill						3
INFUSE Product Liability Litigation | Damages from product defects
Loss Contingencies [Line Items]
Number of claimants						6,000
Pelvic Mesh Litigation | Damages from product defects
Loss Contingencies [Line Items]
Number of claimants						15,800
Number of subsidiaries which supplied pelvic mesh to manufacturer | subsidiary						2
Number of manufacturers | manufacturer						1
Settlement consideration received | $							$ 121
Number of claims settled					5,000		11,000
Pelvic Mesh Litigation | Damages from product defects | Subsequent Event
Loss Contingencies [Line Items]
Number of claims settled	15,400
Ethicon Patent Infringement Litigation
Loss Contingencies [Line Items]
Number of patents allegedly infringed upon | patent			1
Number of claims dismissed | patent			6
Sasso Litigation
Loss Contingencies [Line Items]
Approximate amount of verdict returned against the Company | $		$ 112

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Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Apr. 26, 2019	Jan. 25, 2019	Oct. 26, 2018	Jul. 27, 2018	Apr. 27, 2018	Jan. 26, 2018	Oct. 27, 2017	Jul. 28, 2017	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Quarterly Financial Data [Abstract]
Net sales	$ 8,146	$ 7,546	$ 7,481	$ 7,384	$ 8,144	$ 7,369	$ 7,050	$ 7,390	$ 30,557	$ 29,953	$ 29,710
Gross profit	5,663	5,281	5,278	5,180	5,746	5,175	4,927	5,038
Net income (loss)	1,182	1,271	1,120	1,077	1,465	(1,392)	2,013	1,009	4,650	3,095	4,024
Net income (loss) attributable to Medtronic	$ 1,172	$ 1,269	$ 1,115	$ 1,075	$ 1,460	$ (1,389)	$ 2,017	$ 1,016	$ 4,631	$ 3,104	$ 4,028
Basic earnings (loss) per share (in dollars per share)	$ 0.87	$ 0.95	$ 0.83	$ 0.79	$ 1.08	$ (1.03)	$ 1.49	$ 0.75	$ 3.44	$ 2.29	$ 2.92
Diluted earnings (loss) per share (in dollars per share)	$ 0.87	$ 0.94	$ 0.82	$ 0.79	$ 1.07	$ (1.03)	$ 1.48	$ 0.74	$ 3.41	$ 2.27	$ 2.89

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Segment and Geographic Information , Additional Information (Details)	12 Months Ended
	Apr. 26, 2019 segment
Segment Reporting [Abstract]
Number of operating segments	4
Number of reporting segments	4

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Segment and Geographic Information , Net Sales by Reportable Segment (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Apr. 26, 2019	Jan. 25, 2019	Oct. 26, 2018	Jul. 27, 2018	Apr. 27, 2018	Jan. 26, 2018	Oct. 27, 2017	Jul. 28, 2017	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Segment Reporting Information [Line Items]
Total	$ 8,146	$ 7,546	$ 7,481	$ 7,384	$ 8,144	$ 7,369	$ 7,050	$ 7,390	$ 30,557	$ 29,953	$ 29,710
Cardiac and Vascular Group
Segment Reporting Information [Line Items]
Total									11,505	11,354	10,498
Minimally Invasive Therapies Group
Segment Reporting Information [Line Items]
Total									8,478	8,716	9,919
Restorative Therapies Group
Segment Reporting Information [Line Items]
Total									8,183	7,743	7,366
Diabetes Group
Segment Reporting Information [Line Items]
Total									$ 2,391	$ 2,140	$ 1,927

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Segment and Geographic Information , Reconciliation of Income Before Provision for Income Taxes from Segments to Consolidated (Details) - USD ($)	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Segment Reporting Information [Line Items]
Amortization of intangible assets	$ (1,764,000,000)	$ (1,823,000,000)	$ (1,980,000,000)
Certain litigation charges	(166,000,000)	(61,000,000)	(300,000,000)
Divestiture-related items			0
Gain on sale of businesses	0	697,000,000	0
Income (loss) before income taxes	5,197,000,000	5,675,000,000	4,602,000,000
Reportable segments
Segment Reporting Information [Line Items]
Segment EBITA	11,869,000,000	11,498,000,000	11,126,000,000
Interest income	283,000,000	397,000,000	366,000,000
Reportable segments | Cardiac and Vascular Group
Segment Reporting Information [Line Items]
Segment EBITA	4,541,000,000	4,460,000,000	4,134,000,000
Reportable segments | Minimally Invasive Therapies Group
Segment Reporting Information [Line Items]
Segment EBITA	3,266,000,000	3,346,000,000	3,434,000,000
Reportable segments | Restorative Therapies Group
Segment Reporting Information [Line Items]
Segment EBITA	3,323,000,000	3,058,000,000	2,868,000,000
Reportable segments | Diabetes Group
Segment Reporting Information [Line Items]
Segment EBITA	739,000,000	634,000,000	690,000,000
Segment reconciling items
Segment Reporting Information [Line Items]
Interest expense	(1,444,000,000)	(1,146,000,000)	(1,094,000,000)
Amortization of intangible assets	(1,764,000,000)	(1,823,000,000)	(1,980,000,000)
Corporate	(1,253,000,000)	(1,437,000,000)	(1,232,000,000)
Centralized distribution costs	(1,688,000,000)	(1,936,000,000)	(1,543,000,000)
Restructuring and associated costs	(407,000,000)	(107,000,000)	(373,000,000)
Acquisition-related items	(88,000,000)	(132,000,000)	(230,000,000)
Certain litigation charges	(166,000,000)	(61,000,000)	(300,000,000)
Gain/(loss) on minority investments	62,000,000	0	0
IPR&D charges	(58,000,000)	(46,000,000)	0
Exit of businesses	(149,000,000)	0	0
Divestiture-related items	0	(115,000,000)	0
Gain on sale of businesses	0	697,000,000	0
Contribution to Medtronic Foundation	0	(80,000,000)	(100,000,000)
Hurricane Maria	0	(34,000,000)	0
Impact of inventory step-up	$ 0	$ 0	$ (38,000,000)

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Segment and Geographic Information , Reconciliation of Assets and Depreciation Expense from Segments to Consolidated (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Segment Reporting Information [Line Items]
Total Assets	$ 89,694	$ 91,393
Depreciation Expense	895	821	$ 937
Reportable segments
Segment Reporting Information [Line Items]
Total Assets	76,559	76,554
Depreciation Expense	651	575	734
Reportable segments | Cardiac and Vascular Group
Segment Reporting Information [Line Items]
Total Assets	15,453	15,407
Depreciation Expense	194	183	180
Reportable segments | Minimally Invasive Therapies Group
Segment Reporting Information [Line Items]
Total Assets	41,186	43,002
Depreciation Expense	206	217	358
Reportable segments | Restorative Therapies Group
Segment Reporting Information [Line Items]
Total Assets	16,825	15,245
Depreciation Expense	217	146	167
Reportable segments | Diabetes Group
Segment Reporting Information [Line Items]
Total Assets	3,095	2,900
Depreciation Expense	34	29	29
Corporate
Segment Reporting Information [Line Items]
Total Assets	13,135	14,839
Depreciation Expense	$ 244	$ 246	$ 203

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Segment and Geographic Information , Schedule of Net Sales to External Customers and Property, Plant, and Equipment, Net, by Geographic Region (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Apr. 26, 2019	Jan. 25, 2019	Oct. 26, 2018	Jul. 27, 2018	Apr. 27, 2018	Jan. 26, 2018	Oct. 27, 2017	Jul. 28, 2017	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 8,146	$ 7,546	$ 7,481	$ 7,384	$ 8,144	$ 7,369	$ 7,050	$ 7,390	$ 30,557	$ 29,953	$ 29,710
Property, plant, and equipment, net	4,675				4,604				4,675	4,604
Ireland
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									91	85	69
Property, plant, and equipment, net	156				149				156	149
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									16,194	15,875	16,663
Property, plant, and equipment, net	3,122				2,927				3,122	2,927
Rest of world
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									14,272	13,993	12,978
Property, plant, and equipment, net	1,397				1,528				1,397	1,528
Total other countries, excluding Ireland
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									30,466	29,868	$ 29,641
Property, plant, and equipment, net	$ 4,519				$ 4,455				$ 4,519	$ 4,455

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Guarantor Financial Information , Consolidating Statement of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Apr. 26, 2019	Jan. 25, 2019	Oct. 26, 2018	Jul. 27, 2018	Apr. 27, 2018	Jan. 26, 2018	Oct. 27, 2017	Jul. 28, 2017	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Condensed Statement of Income Captions [Line Items]
Net sales	$ 8,146	$ 7,546	$ 7,481	$ 7,384	$ 8,144	$ 7,369	$ 7,050	$ 7,390	$ 30,557	$ 29,953	$ 29,710
Costs and expenses:
Cost of products sold									9,155	9,067	9,294
Research and development expense									2,330	2,256	2,193
Selling, general, and administrative expense									10,418	10,238	10,018
Amortization of intangible assets									1,764	1,823	1,980
Restructuring charges, net									198	30	303
Certain litigation charges									166	61	300
Gain on sale of businesses									0	(697)	0
Other operating expense (income), net									258	535	239
Operating profit (loss)									6,268	6,640	5,383
Other non-operating (income) expense, net									(373)	(181)	(313)
Interest expense									1,444	1,146	1,094
Equity in net (income) loss of subsidiaries									0	0	0
Income (loss) before income taxes									5,197	5,675	4,602
Income tax (benefit) provision									547	2,580	578
Net income (loss)	1,182	1,271	1,120	1,077	1,465	(1,392)	2,013	1,009	4,650	3,095	4,024
Net (income) loss attributable to noncontrolling interests									(19)	9	4
Net income (loss) attributable to Medtronic	$ 1,172	$ 1,269	$ 1,115	$ 1,075	$ 1,460	$ (1,389)	$ 2,017	$ 1,016	4,631	3,104	4,028
Other comprehensive income (loss), net of tax									(975)	1,030	(744)
Comprehensive (income) loss attributable to noncontrolling interests									(16)	9	3
Comprehensive income attributable to Medtronic									3,659	4,134	3,283
Consolidating Adjustments | Medtronic Notes
Condensed Statement of Income Captions [Line Items]
Net sales									(1,319)	(1,197)	(1,197)
Costs and expenses:
Cost of products sold									(788)	(788)	(793)
Research and development expense									0	0	0
Selling, general, and administrative expense									0	0	0
Amortization of intangible assets									0	0	0
Restructuring charges, net									0	0	0
Certain litigation charges									0	0	0
Gain on sale of businesses										0
Other operating expense (income), net									(427)	(408)	(423)
Operating profit (loss)									(104)	(1)	19
Other non-operating (income) expense, net									2,832	2,020	1,598
Interest expense									(2,832)	(2,020)	(1,598)
Equity in net (income) loss of subsidiaries									13,098	7,508	9,302
Income (loss) before income taxes									(13,202)	(7,509)	(9,283)
Income tax (benefit) provision									0	0	0
Net income (loss)									(13,202)	(7,509)	(9,283)
Net (income) loss attributable to noncontrolling interests									0	0	0
Net income (loss) attributable to Medtronic									(13,202)	(7,509)	(9,283)
Other comprehensive income (loss), net of tax									2,900	(2,956)	2,104
Comprehensive (income) loss attributable to noncontrolling interests									0	0	0
Comprehensive income attributable to Medtronic									(10,302)	(10,465)	(7,179)
Consolidating Adjustments | CIFSA Senior Notes
Condensed Statement of Income Captions [Line Items]
Net sales									0	0	0
Costs and expenses:
Cost of products sold									0	0	0
Research and development expense									0	0	0
Selling, general, and administrative expense									0	0	0
Amortization of intangible assets									0	0	0
Restructuring charges, net									0	0	0
Certain litigation charges									0	0	0
Gain on sale of businesses										0
Other operating expense (income), net									0	0	0
Operating profit (loss)									0	0	0
Other non-operating (income) expense, net									1,337	723	805
Interest expense									(1,337)	(723)	(805)
Equity in net (income) loss of subsidiaries									13,130	10,659	11,474
Income (loss) before income taxes									(13,130)	(10,659)	(11,474)
Income tax (benefit) provision									0	0	0
Net income (loss)									(13,130)	(10,659)	(11,474)
Net (income) loss attributable to noncontrolling interests									0	0	0
Net income (loss) attributable to Medtronic									(13,130)	(10,659)	(11,474)
Other comprehensive income (loss), net of tax									2,022	(2,103)	1,724
Comprehensive (income) loss attributable to noncontrolling interests									0	0	0
Comprehensive income attributable to Medtronic									(11,108)	(12,762)	(9,750)
Medtronic plc | Reportable Legal Entities | Medtronic Notes
Condensed Statement of Income Captions [Line Items]
Net sales									0	0	0
Costs and expenses:
Cost of products sold									0	0	0
Research and development expense									0	0	0
Selling, general, and administrative expense									11	12	12
Amortization of intangible assets									0	0	0
Restructuring charges, net									0	0	0
Certain litigation charges									0	0	0
Gain on sale of businesses										0
Other operating expense (income), net									54	52	18
Operating profit (loss)									(65)	(64)	(30)
Other non-operating (income) expense, net									0	0	0
Interest expense									478	247	113
Equity in net (income) loss of subsidiaries									(5,167)	(3,408)	(4,163)
Income (loss) before income taxes									4,624	3,097	4,020
Income tax (benefit) provision									(7)	(7)	(8)
Net income (loss)									4,631	3,104	4,028
Net (income) loss attributable to noncontrolling interests									0	0	0
Net income (loss) attributable to Medtronic									4,631	3,104	4,028
Other comprehensive income (loss), net of tax									(972)	1,030	(745)
Comprehensive (income) loss attributable to noncontrolling interests									0	0	0
Comprehensive income attributable to Medtronic									3,659	4,134	3,283
Medtronic plc | Reportable Legal Entities | CIFSA Senior Notes
Condensed Statement of Income Captions [Line Items]
Net sales									0	0	0
Costs and expenses:
Cost of products sold									0	0	0
Research and development expense									0	0	0
Selling, general, and administrative expense									11	12	12
Amortization of intangible assets									0	0	0
Restructuring charges, net									0	0	0
Certain litigation charges									0	0	0
Gain on sale of businesses										0
Other operating expense (income), net									54	52	18
Operating profit (loss)									(65)	(64)	(30)
Other non-operating (income) expense, net									0	0	0
Interest expense									478	247	113
Equity in net (income) loss of subsidiaries									(5,167)	(3,408)	(4,163)
Income (loss) before income taxes									4,624	3,097	4,020
Income tax (benefit) provision									(7)	(7)	(8)
Net income (loss)									4,631	3,104	4,028
Net (income) loss attributable to noncontrolling interests									0	0	0
Net income (loss) attributable to Medtronic									4,631	3,104	4,028
Other comprehensive income (loss), net of tax									(972)	1,030	(745)
Comprehensive (income) loss attributable to noncontrolling interests									0	0	0
Comprehensive income attributable to Medtronic									3,659	4,134	3,283
Subsidiary Issuer | Reportable Legal Entities | Medtronic Notes
Condensed Statement of Income Captions [Line Items]
Net sales									1,318	1,198	1,199
Costs and expenses:
Cost of products sold									1,110	971	935
Research and development expense									659	656	636
Selling, general, and administrative expense									1,476	1,416	1,308
Amortization of intangible assets									8	8	11
Restructuring charges, net									44	(7)	54
Certain litigation charges									55	24	0
Gain on sale of businesses										0
Other operating expense (income), net									(2,426)	(2,265)	(2,380)
Operating profit (loss)									392	395	635
Other non-operating (income) expense, net									(507)	(192)	(197)
Interest expense									2,375	1,897	1,652
Equity in net (income) loss of subsidiaries									(3,089)	(940)	(1,563)
Income (loss) before income taxes									1,613	(370)	743
Income tax (benefit) provision									(246)	41	(124)
Net income (loss)									1,859	(411)	867
Net (income) loss attributable to noncontrolling interests									0	0	0
Net income (loss) attributable to Medtronic									1,859	(411)	867
Other comprehensive income (loss), net of tax									(1,049)	972	(430)
Comprehensive (income) loss attributable to noncontrolling interests									0	0	0
Comprehensive income attributable to Medtronic									810	561	437
Subsidiary Issuer | Reportable Legal Entities | CIFSA Senior Notes
Condensed Statement of Income Captions [Line Items]
Net sales									0	0	0
Costs and expenses:
Cost of products sold									0	0	0
Research and development expense									0	0	0
Selling, general, and administrative expense									1	1	1
Amortization of intangible assets									0	0	0
Restructuring charges, net									0	0	0
Certain litigation charges									0	0	0
Gain on sale of businesses										0
Other operating expense (income), net									1	1	1
Operating profit (loss)									(2)	(2)	(2)
Other non-operating (income) expense, net									(44)	(60)	(82)
Interest expense									99	83	104
Equity in net (income) loss of subsidiaries									(3,144)	(4,105)	(3,736)
Income (loss) before income taxes									3,087	4,080	3,712
Income tax (benefit) provision									0	0	0
Net income (loss)									3,087	4,080	3,712
Net (income) loss attributable to noncontrolling interests									0	0	0
Net income (loss) attributable to Medtronic									3,087	4,080	3,712
Other comprehensive income (loss), net of tax									7	43	(234)
Comprehensive (income) loss attributable to noncontrolling interests									0	0	0
Comprehensive income attributable to Medtronic									3,094	4,123	3,478
Subsidiary Guarantors | Reportable Legal Entities | Medtronic Notes
Condensed Statement of Income Captions [Line Items]
Net sales									0	0	0
Costs and expenses:
Cost of products sold									0	0	0
Research and development expense									0	0	0
Selling, general, and administrative expense									0	0	0
Amortization of intangible assets									0	0	0
Restructuring charges, net									0	0	0
Certain litigation charges									0	0	0
Gain on sale of businesses										0
Other operating expense (income), net									(28)	0	0
Operating profit (loss)									28	0	0
Other non-operating (income) expense, net									(808)	(482)	(649)
Interest expense									511	234	62
Equity in net (income) loss of subsidiaries									(4,842)	(3,160)	(3,576)
Income (loss) before income taxes									5,167	3,408	4,163
Income tax (benefit) provision									0	0	0
Net income (loss)									5,167	3,408	4,163
Net (income) loss attributable to noncontrolling interests									0	0	0
Net income (loss) attributable to Medtronic									5,167	3,408	4,163
Other comprehensive income (loss), net of tax									(972)	1,030	(745)
Comprehensive (income) loss attributable to noncontrolling interests									0	0	0
Comprehensive income attributable to Medtronic									4,195	4,438	3,418
Subsidiary Guarantors | Reportable Legal Entities | CIFSA Senior Notes
Condensed Statement of Income Captions [Line Items]
Net sales									0	0	0
Costs and expenses:
Cost of products sold									0	0	0
Research and development expense									0	0	0
Selling, general, and administrative expense									4	2	2
Amortization of intangible assets									0	0	0
Restructuring charges, net									0	0	0
Certain litigation charges									0	0	0
Gain on sale of businesses										0
Other operating expense (income), net									(27)	0	4
Operating profit (loss)									23	(2)	(6)
Other non-operating (income) expense, net									(836)	(498)	(656)
Interest expense									511	234	62
Equity in net (income) loss of subsidiaries									(4,819)	(3,146)	(3,575)
Income (loss) before income taxes									5,167	3,408	4,163
Income tax (benefit) provision									0	0	0
Net income (loss)									5,167	3,408	4,163
Net (income) loss attributable to noncontrolling interests									0	0	0
Net income (loss) attributable to Medtronic									5,167	3,408	4,163
Other comprehensive income (loss), net of tax									(972)	1,030	(745)
Comprehensive (income) loss attributable to noncontrolling interests									0	0	0
Comprehensive income attributable to Medtronic									4,195	4,438	3,418
Subsidiary Non-guarantors | Reportable Legal Entities | Medtronic Notes
Condensed Statement of Income Captions [Line Items]
Net sales									30,558	29,952	29,708
Costs and expenses:
Cost of products sold									8,833	8,884	9,152
Research and development expense									1,671	1,600	1,557
Selling, general, and administrative expense									8,931	8,810	8,698
Amortization of intangible assets									1,756	1,815	1,969
Restructuring charges, net									154	37	249
Certain litigation charges									111	37	300
Gain on sale of businesses										(697)
Other operating expense (income), net									3,085	3,156	3,024
Operating profit (loss)									6,017	6,310	4,759
Other non-operating (income) expense, net									(1,890)	(1,527)	(1,065)
Interest expense									912	788	865
Equity in net (income) loss of subsidiaries									0	0	0
Income (loss) before income taxes									6,995	7,049	4,959
Income tax (benefit) provision									800	2,546	710
Net income (loss)									6,195	4,503	4,249
Net (income) loss attributable to noncontrolling interests									(19)	9	4
Net income (loss) attributable to Medtronic									6,176	4,512	4,253
Other comprehensive income (loss), net of tax									(882)	954	(928)
Comprehensive (income) loss attributable to noncontrolling interests									(16)	9	3
Comprehensive income attributable to Medtronic									5,297	5,466	3,324
Subsidiary Non-guarantors | Reportable Legal Entities | CIFSA Senior Notes
Condensed Statement of Income Captions [Line Items]
Net sales									30,557	29,953	29,710
Costs and expenses:
Cost of products sold									9,155	9,067	9,294
Research and development expense									2,330	2,256	2,193
Selling, general, and administrative expense									10,402	10,223	10,003
Amortization of intangible assets									1,764	1,823	1,980
Restructuring charges, net									198	30	303
Certain litigation charges									166	61	300
Gain on sale of businesses										(697)
Other operating expense (income), net									230	482	216
Operating profit (loss)									6,312	6,708	5,421
Other non-operating (income) expense, net									(830)	(346)	(380)
Interest expense									1,693	1,305	1,620
Equity in net (income) loss of subsidiaries									0	0	0
Income (loss) before income taxes									5,449	5,749	4,181
Income tax (benefit) provision									554	2,587	586
Net income (loss)									4,895	3,162	3,595
Net (income) loss attributable to noncontrolling interests									(19)	9	4
Net income (loss) attributable to Medtronic									4,876	3,171	3,599
Other comprehensive income (loss), net of tax									(1,060)	1,030	(744)
Comprehensive (income) loss attributable to noncontrolling interests									(16)	9	3
Comprehensive income attributable to Medtronic									$ 3,819	$ 4,201	$ 2,854

XML

Guarantor Financial Information , Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017	Apr. 29, 2016
Current assets:
Cash and cash equivalents	$ 4,393	$ 3,669
Investments	5,455	7,558
Accounts receivable, net	6,222	5,987
Inventories, net	3,753	3,579
Intercompany receivable	0	0
Other current assets	2,144	2,187
Total current assets	21,967	22,980
Property, plant, and equipment, net	4,675	4,604
Goodwill	39,959	39,543	$ 38,515
Other intangible assets, net	20,560	21,723
Tax assets	1,519	1,465
Investment in subsidiaries	0	0
Intercompany loans receivable	0	0
Other assets	1,014	1,078
Total assets	89,694	91,393
Current liabilities:
Current debt obligations	838	2,058
Accounts payable	1,953	1,628
Intercompany payable	0	0
Accrued compensation	2,189	1,988
Accrued income taxes	567	979
Other accrued expenses	2,925	3,431
Total current liabilities	8,472	10,084
Long-term debt	24,486	23,699
Accrued compensation and retirement benefits	1,651	1,425
Accrued income taxes	2,838	3,051
Intercompany loans payable	0	0
Deferred tax liabilities	1,278	1,423
Other liabilities	757	889
Total liabilities	39,482	40,571
Shareholders' equity	50,091	50,720
Noncontrolling interests	121	102
Total equity	50,212	50,822	$ 50,330	$ 51,977
Total liabilities and equity	89,694	91,393
Consolidating Adjustments | Medtronic Notes
Current assets:
Cash and cash equivalents	0	0
Investments	0	0
Accounts receivable, net	0	0
Inventories, net	(227)	(125)
Intercompany receivable	(28,623)	(57,446)
Other current assets	0	0
Total current assets	(28,850)	(57,571)
Property, plant, and equipment, net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Tax assets	0	0
Investment in subsidiaries	(200,648)	(195,337)
Intercompany loans receivable	(66,277)	(63,052)
Other assets	0	0
Total assets	(295,775)	(315,960)
Current liabilities:
Current debt obligations	0	0
Accounts payable	0	0
Intercompany payable	(28,623)	(57,446)
Accrued compensation	0	0
Accrued income taxes	0	0
Other accrued expenses	0	0
Total current liabilities	(28,623)	(57,446)
Long-term debt	0	0
Accrued compensation and retirement benefits	0	0
Accrued income taxes	0	0
Intercompany loans payable	(66,277)	(63,052)
Deferred tax liabilities	0	0
Other liabilities	0	0
Total liabilities	(94,900)	(120,498)
Shareholders' equity	(200,875)	(195,462)
Noncontrolling interests	0	0
Total equity	(200,875)	(195,462)
Total liabilities and equity	(295,775)	(315,960)
Consolidating Adjustments | CIFSA Senior Notes
Current assets:
Cash and cash equivalents	0	0
Investments	0	0
Accounts receivable, net	0	0
Inventories, net	0	0
Intercompany receivable	(8,626)	(6,940)
Other current assets	0	0
Total current assets	(8,626)	(6,940)
Property, plant, and equipment, net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Tax assets	0	0
Investment in subsidiaries	(167,405)	(151,742)
Intercompany loans receivable	(63,979)	(43,064)
Other assets	0	0
Total assets	(240,010)	(201,746)
Current liabilities:
Current debt obligations	0	0
Accounts payable	0	0
Intercompany payable	(8,626)	(6,940)
Accrued compensation	0	0
Accrued income taxes	0	0
Other accrued expenses	0	0
Total current liabilities	(8,626)	(6,940)
Long-term debt	0	0
Accrued compensation and retirement benefits	0	0
Accrued income taxes	0	0
Intercompany loans payable	(63,979)	(43,064)
Deferred tax liabilities	0	0
Other liabilities	0	0
Total liabilities	(72,605)	(50,004)
Shareholders' equity	(167,405)	(151,742)
Noncontrolling interests	0	0
Total equity	(167,405)	(151,742)
Total liabilities and equity	(240,010)	(201,746)
Medtronic plc | Reportable Legal Entities | Medtronic Notes
Current assets:
Cash and cash equivalents	0	0
Investments	0	0
Accounts receivable, net	0	0
Inventories, net	0	0
Intercompany receivable	40	37
Other current assets	10	6
Total current assets	50	43
Property, plant, and equipment, net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Tax assets	0	0
Investment in subsidiaries	64,352	60,381
Intercompany loans receivable	3,000	3,000
Other assets	0	0
Total assets	67,402	63,424
Current liabilities:
Current debt obligations	0	0
Accounts payable	0	0
Intercompany payable	0	0
Accrued compensation	3	3
Accrued income taxes	0	0
Other accrued expenses	20	16
Total current liabilities	23	19
Long-term debt	0	0
Accrued compensation and retirement benefits	0	0
Accrued income taxes	10	10
Intercompany loans payable	17,278	12,675
Deferred tax liabilities	0	0
Other liabilities	0	0
Total liabilities	17,311	12,704
Shareholders' equity	50,091	50,720
Noncontrolling interests	0	0
Total equity	50,091	50,720
Total liabilities and equity	67,402	63,424
Medtronic plc | Reportable Legal Entities | CIFSA Senior Notes
Current assets:
Cash and cash equivalents	0	0
Investments	0	0
Accounts receivable, net	0	0
Inventories, net	0	0
Intercompany receivable	40	37
Other current assets	10	6
Total current assets	50	43
Property, plant, and equipment, net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Tax assets	0	0
Investment in subsidiaries	64,352	60,381
Intercompany loans receivable	3,000	3,000
Other assets	0	0
Total assets	67,402	63,424
Current liabilities:
Current debt obligations	0	0
Accounts payable	0	0
Intercompany payable	0	0
Accrued compensation	3	3
Accrued income taxes	0	0
Other accrued expenses	20	16
Total current liabilities	23	19
Long-term debt	0	0
Accrued compensation and retirement benefits	0	0
Accrued income taxes	10	10
Intercompany loans payable	17,278	12,675
Deferred tax liabilities	0	0
Other liabilities	0	0
Total liabilities	17,311	12,704
Shareholders' equity	50,091	50,720
Noncontrolling interests	0	0
Total equity	50,091	50,720
Total liabilities and equity	67,402	63,424
Subsidiary Issuer | Reportable Legal Entities | Medtronic Notes
Current assets:
Cash and cash equivalents	18	20
Investments	0	76
Accounts receivable, net	0	0
Inventories, net	188	165
Intercompany receivable	9,407	23,480
Other current assets	190	178
Total current assets	9,803	23,919
Property, plant, and equipment, net	1,480	1,426
Goodwill	2,009	1,883
Other intangible assets, net	99	12
Tax assets	568	385
Investment in subsidiaries	71,284	73,495
Intercompany loans receivable	21	6,519
Other assets	216	223
Total assets	85,480	107,862
Current liabilities:
Current debt obligations	500	0
Accounts payable	481	381
Intercompany payable	11,971	28,401
Accrued compensation	913	787
Accrued income taxes	0	0
Other accrued expenses	331	359
Total current liabilities	14,196	29,928
Long-term debt	14,418	20,598
Accrued compensation and retirement benefits	1,069	902
Accrued income taxes	692	531
Intercompany loans payable	12,613	14,339
Deferred tax liabilities	0	0
Other liabilities	133	68
Total liabilities	43,121	66,366
Shareholders' equity	42,359	41,496
Noncontrolling interests	0	0
Total equity	42,359	41,496
Total liabilities and equity	85,480	107,862
Subsidiary Issuer | Reportable Legal Entities | CIFSA Senior Notes
Current assets:
Cash and cash equivalents	0	0
Investments	0	0
Accounts receivable, net	0	0
Inventories, net	0	0
Intercompany receivable	0	0
Other current assets	0	0
Total current assets	0	0
Property, plant, and equipment, net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Tax assets	0	0
Investment in subsidiaries	39,402	31,239
Intercompany loans receivable	4,119	1,291
Other assets	0	0
Total assets	43,521	32,530
Current liabilities:
Current debt obligations	0	0
Accounts payable	0	0
Intercompany payable	1,308	1,283
Accrued compensation	0	0
Accrued income taxes	0	0
Other accrued expenses	11	21
Total current liabilities	1,319	1,304
Long-term debt	1,354	2,111
Accrued compensation and retirement benefits	0	0
Accrued income taxes	0	0
Intercompany loans payable	9,320	100
Deferred tax liabilities	0	0
Other liabilities	0	0
Total liabilities	11,993	3,515
Shareholders' equity	31,528	29,015
Noncontrolling interests	0	0
Total equity	31,528	29,015
Total liabilities and equity	43,521	32,530
Subsidiary Guarantors | Reportable Legal Entities | Medtronic Notes
Current assets:
Cash and cash equivalents	1	1
Investments	0	0
Accounts receivable, net	0	0
Inventories, net	0	0
Intercompany receivable	6	0
Other current assets	3	0
Total current assets	10	1
Property, plant, and equipment, net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Tax assets	0	0
Investment in subsidiaries	65,012	61,461
Intercompany loans receivable	27,858	19,337
Other assets	0	0
Total assets	92,880	80,799
Current liabilities:
Current debt obligations	0	1,696
Accounts payable	0	0
Intercompany payable	7,200	5,542
Accrued compensation	0	0
Accrued income taxes	0	0
Other accrued expenses	53	4
Total current liabilities	7,253	7,242
Long-term debt	8,621	844
Accrued compensation and retirement benefits	0	0
Accrued income taxes	0	0
Intercompany loans payable	19,682	19,335
Deferred tax liabilities	0	0
Other liabilities	0	0
Total liabilities	35,556	27,421
Shareholders' equity	57,324	53,378
Noncontrolling interests	0	0
Total equity	57,324	53,378
Total liabilities and equity	92,880	80,799
Subsidiary Guarantors | Reportable Legal Entities | CIFSA Senior Notes
Current assets:
Cash and cash equivalents	1	1
Investments	0	0
Accounts receivable, net	0	0
Inventories, net	0	0
Intercompany receivable	1,374	1,343
Other current assets	3	0
Total current assets	1,378	1,344
Property, plant, and equipment, net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Tax assets	0	0
Investment in subsidiaries	63,651	60,122
Intercompany loans receivable	27,858	19,337
Other assets	0	0
Total assets	92,887	80,803
Current liabilities:
Current debt obligations	0	1,696
Accounts payable	0	0
Intercompany payable	7,199	5,542
Accrued compensation	0	0
Accrued income taxes	0	0
Other accrued expenses	60	8
Total current liabilities	7,259	7,246
Long-term debt	8,621	844
Accrued compensation and retirement benefits	0	0
Accrued income taxes	0	0
Intercompany loans payable	19,682	19,335
Deferred tax liabilities	0	0
Other liabilities	1	0
Total liabilities	35,563	27,425
Shareholders' equity	57,324	53,378
Noncontrolling interests	0	0
Total equity	57,324	53,378
Total liabilities and equity	92,887	80,803
Subsidiary Non-guarantors | Reportable Legal Entities | Medtronic Notes
Current assets:
Cash and cash equivalents	4,374	3,648
Investments	5,455	7,482
Accounts receivable, net	6,222	5,987
Inventories, net	3,792	3,539
Intercompany receivable	19,170	33,929
Other current assets	1,941	2,003
Total current assets	40,954	56,588
Property, plant, and equipment, net	3,195	3,178
Goodwill	37,950	37,660
Other intangible assets, net	20,461	21,711
Tax assets	951	1,080
Investment in subsidiaries	0	0
Intercompany loans receivable	35,398	34,196
Other assets	798	855
Total assets	139,707	155,268
Current liabilities:
Current debt obligations	338	362
Accounts payable	1,472	1,247
Intercompany payable	9,452	23,503
Accrued compensation	1,273	1,198
Accrued income taxes	567	979
Other accrued expenses	2,521	3,052
Total current liabilities	15,623	30,341
Long-term debt	1,447	2,257
Accrued compensation and retirement benefits	582	523
Accrued income taxes	2,136	2,510
Intercompany loans payable	16,704	16,703
Deferred tax liabilities	1,278	1,423
Other liabilities	624	821
Total liabilities	38,394	54,578
Shareholders' equity	101,192	100,588
Noncontrolling interests	121	102
Total equity	101,313	100,690
Total liabilities and equity	139,707	155,268
Subsidiary Non-guarantors | Reportable Legal Entities | CIFSA Senior Notes
Current assets:
Cash and cash equivalents	4,392	3,668
Investments	5,455	7,558
Accounts receivable, net	6,222	5,987
Inventories, net	3,753	3,579
Intercompany receivable	7,212	5,560
Other current assets	2,131	2,181
Total current assets	29,165	28,533
Property, plant, and equipment, net	4,675	4,604
Goodwill	39,959	39,543
Other intangible assets, net	20,560	21,723
Tax assets	1,519	1,465
Investment in subsidiaries	0	0
Intercompany loans receivable	29,002	19,436
Other assets	1,014	1,078
Total assets	125,894	116,382
Current liabilities:
Current debt obligations	838	362
Accounts payable	1,953	1,628
Intercompany payable	119	115
Accrued compensation	2,186	1,985
Accrued income taxes	567	979
Other accrued expenses	2,834	3,386
Total current liabilities	8,497	8,455
Long-term debt	14,511	20,744
Accrued compensation and retirement benefits	1,651	1,425
Accrued income taxes	2,828	3,041
Intercompany loans payable	17,699	10,954
Deferred tax liabilities	1,278	1,423
Other liabilities	756	889
Total liabilities	47,220	46,931
Shareholders' equity	78,553	69,349
Noncontrolling interests	121	102
Total equity	78,674	69,451
Total liabilities and equity	$ 125,894	$ 116,382

XML

Guarantor Financial Information , Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Operating Activities:
Net cash provided by operating activities	$ 7,007	$ 4,684	$ 6,880
Investing Activities:
Acquisitions, net of cash acquired	(1,827)	(137)	(1,324)
Proceeds from sale of businesses	0	6,058	0
Additions to property, plant, and equipment	(1,134)	(1,068)	(1,254)
Purchases of investments	(2,532)	(3,200)	(4,371)
Sales and maturities of investments	4,683	4,227	5,356
Capital contributions paid	0	0	0
Other investing activities, net	36	(22)	22
Net cash (used in) provided by investing activities	(774)	5,858	(1,571)
Financing Activities:
Change in current debt obligations, net	(713)	(249)	906
Issuance of long-term debt	7,794	21	2,140
Payments on long-term debt	(7,948)	(7,370)	(863)
Dividends to shareholders	(2,693)	(2,494)	(2,376)
Issuance of ordinary shares	992	403	428
Repurchase of ordinary shares	(2,877)	(2,171)	(3,544)
Net intercompany loan borrowings (repayments)	0	0	0
Intercompany dividend paid	0	0	0
Capital contributions received	0	0	0
Other financing activities	14	(94)	26
Net cash used in financing activities	(5,431)	(11,954)	(3,283)
Effect of exchange rate changes on cash and cash equivalents	(78)	114	65
Net change in cash and cash equivalents	724	(1,298)	2,091
Cash and cash equivalents at beginning of period	3,669	4,967	2,876
Cash and cash equivalents at end of period	4,393	3,669	4,967
Consolidating Adjustments | Medtronic Notes
Operating Activities:
Net cash provided by operating activities	(5,919)	(10,572)	(887)
Investing Activities:
Acquisitions, net of cash acquired	0	0	0
Proceeds from sale of businesses		0
Additions to property, plant, and equipment	0	0	0
Purchases of investments	0	47	162
Sales and maturities of investments	0	(47)	(162)
Capital contributions paid	115	4,259	248
Other investing activities, net	0	0	0
Net cash (used in) provided by investing activities	115	4,259	248
Financing Activities:
Change in current debt obligations, net	0	0	0
Issuance of long-term debt	0	0	0
Payments on long-term debt	0	0	0
Dividends to shareholders	0	0	0
Issuance of ordinary shares	0	0	0
Repurchase of ordinary shares	0	0	0
Net intercompany loan borrowings (repayments)	0	0	0
Intercompany dividend paid	5,919	10,572	887
Capital contributions received	(115)	(4,259)	(248)
Other financing activities	0	0	0
Net cash used in financing activities	5,804	6,313	639
Effect of exchange rate changes on cash and cash equivalents	0	0	0
Net change in cash and cash equivalents	0	0	0
Cash and cash equivalents at beginning of period	0	0	0
Cash and cash equivalents at end of period	0	0	0
Consolidating Adjustments | CIFSA Senior Notes
Operating Activities:
Net cash provided by operating activities	(750)	(1,048)	(1,997)
Investing Activities:
Acquisitions, net of cash acquired	0	0	0
Proceeds from sale of businesses		0
Additions to property, plant, and equipment	0	0	0
Purchases of investments	0	25	0
Sales and maturities of investments	0	(25)	0
Capital contributions paid	6,364	5,757	537
Other investing activities, net	0	0	0
Net cash (used in) provided by investing activities	6,364	5,757	537
Financing Activities:
Change in current debt obligations, net	0	0	0
Issuance of long-term debt	0	0	0
Payments on long-term debt	0	0	0
Dividends to shareholders	0	0	0
Issuance of ordinary shares	0	0	0
Repurchase of ordinary shares	0	0	0
Net intercompany loan borrowings (repayments)	0	0	0
Intercompany dividend paid	750	1,048	1,997
Capital contributions received	(6,364)	(5,757)	(537)
Other financing activities	0	0	0
Net cash used in financing activities	(5,614)	(4,709)	1,460
Effect of exchange rate changes on cash and cash equivalents	0	0	0
Net change in cash and cash equivalents	0	0	0
Cash and cash equivalents at beginning of period	0	0	0
Cash and cash equivalents at end of period	0	0	0
Medtronic plc | Reportable Legal Entities | Medtronic Notes
Operating Activities:
Net cash provided by operating activities	(7)	155	842
Investing Activities:
Acquisitions, net of cash acquired	0	0	0
Proceeds from sale of businesses		0
Additions to property, plant, and equipment	0	0	0
Purchases of investments	0	0	0
Sales and maturities of investments	0	0	0
Capital contributions paid	(18)	0	0
Other investing activities, net	0	0	0
Net cash (used in) provided by investing activities	(18)	0	0
Financing Activities:
Change in current debt obligations, net	0	0	0
Issuance of long-term debt	0	0	0
Payments on long-term debt	0	0	0
Dividends to shareholders	(2,693)	(2,494)	(2,376)
Issuance of ordinary shares	992	403	428
Repurchase of ordinary shares	(2,877)	(2,171)	(3,544)
Net intercompany loan borrowings (repayments)	4,603	4,107	4,650
Intercompany dividend paid	0	0	0
Capital contributions received	0	0	0
Other financing activities	0	0	0
Net cash used in financing activities	25	(155)	(842)
Effect of exchange rate changes on cash and cash equivalents	0	0	0
Net change in cash and cash equivalents	0	0	0
Cash and cash equivalents at beginning of period	0	0	0
Cash and cash equivalents at end of period	0	0	0
Medtronic plc | Reportable Legal Entities | CIFSA Senior Notes
Operating Activities:
Net cash provided by operating activities	(7)	155	842
Investing Activities:
Acquisitions, net of cash acquired	0	0	0
Proceeds from sale of businesses		0
Additions to property, plant, and equipment	0	0	0
Purchases of investments	0	0	0
Sales and maturities of investments	0	0	0
Capital contributions paid	(18)	0	0
Other investing activities, net	0	0	0
Net cash (used in) provided by investing activities	(18)	0	0
Financing Activities:
Change in current debt obligations, net	0	0	0
Issuance of long-term debt	0	0	0
Payments on long-term debt	0	0	0
Dividends to shareholders	(2,693)	(2,494)	(2,376)
Issuance of ordinary shares	992	403	428
Repurchase of ordinary shares	(2,877)	(2,171)	(3,544)
Net intercompany loan borrowings (repayments)	4,603	4,107	4,650
Intercompany dividend paid	0	0	0
Capital contributions received	0	0	0
Other financing activities	0	0	0
Net cash used in financing activities	25	(155)	(842)
Effect of exchange rate changes on cash and cash equivalents	0	0	0
Net change in cash and cash equivalents	0	0	0
Cash and cash equivalents at beginning of period	0	0	0
Cash and cash equivalents at end of period	0	0	0
Subsidiary Issuer | Reportable Legal Entities | Medtronic Notes
Operating Activities:
Net cash provided by operating activities	4,944	(1,567)	1,902
Investing Activities:
Acquisitions, net of cash acquired	(237)	0	(940)
Proceeds from sale of businesses		0
Additions to property, plant, and equipment	(313)	(340)	(369)
Purchases of investments	0	(98)	0
Sales and maturities of investments	76	25	210
Capital contributions paid	(97)	(59)	(248)
Other investing activities, net	0	0	0
Net cash (used in) provided by investing activities	(571)	(472)	(1,347)
Financing Activities:
Change in current debt obligations, net	0	0	0
Issuance of long-term debt	0	0	150
Payments on long-term debt	(6,182)	(6,166)	(500)
Dividends to shareholders	0	0	0
Issuance of ordinary shares	0	0	0
Repurchase of ordinary shares	0	0	0
Net intercompany loan borrowings (repayments)	1,807	8,180	(255)
Intercompany dividend paid	0	0	0
Capital contributions received	0	0	0
Other financing activities	0	0	40
Net cash used in financing activities	(4,375)	2,014	(565)
Effect of exchange rate changes on cash and cash equivalents	0	0	0
Net change in cash and cash equivalents	(2)	(25)	(10)
Cash and cash equivalents at beginning of period	20	45	55
Cash and cash equivalents at end of period	18	20	45
Subsidiary Issuer | Reportable Legal Entities | CIFSA Senior Notes
Operating Activities:
Net cash provided by operating activities	661	974	1,904
Investing Activities:
Acquisitions, net of cash acquired	0	0	0
Proceeds from sale of businesses		0
Additions to property, plant, and equipment	0	0	0
Purchases of investments	0	0	0
Sales and maturities of investments	0	0	0
Capital contributions paid	(6,346)	(1,557)	(537)
Other investing activities, net	0	0	0
Net cash (used in) provided by investing activities	(6,346)	(1,557)	(537)
Financing Activities:
Change in current debt obligations, net	0	0	0
Issuance of long-term debt	0	0	0
Payments on long-term debt	(732)	(1,150)	0
Dividends to shareholders	0	0	0
Issuance of ordinary shares	0	0	0
Repurchase of ordinary shares	0	0	0
Net intercompany loan borrowings (repayments)	6,417	1,700	(1,542)
Intercompany dividend paid	0	0	0
Capital contributions received	0	0	0
Other financing activities	0	0	0
Net cash used in financing activities	5,685	550	(1,542)
Effect of exchange rate changes on cash and cash equivalents	0	0	0
Net change in cash and cash equivalents	0	(33)	(175)
Cash and cash equivalents at beginning of period	0	33	208
Cash and cash equivalents at end of period	0	0	33
Subsidiary Guarantors | Reportable Legal Entities | Medtronic Notes
Operating Activities:
Net cash provided by operating activities	298	249	302
Investing Activities:
Acquisitions, net of cash acquired	0	0	0
Proceeds from sale of businesses		0
Additions to property, plant, and equipment	0	0	0
Purchases of investments	0	(25)	0
Sales and maturities of investments	0	0	0
Capital contributions paid	0	(4,200)	0
Other investing activities, net	82	0	0
Net cash (used in) provided by investing activities	82	(4,225)	0
Financing Activities:
Change in current debt obligations, net	(1,696)	(205)	901
Issuance of long-term debt	7,791	0	1,850
Payments on long-term debt	0	0	0
Dividends to shareholders	0	0	0
Issuance of ordinary shares	0	0	0
Repurchase of ordinary shares	0	0	0
Net intercompany loan borrowings (repayments)	(6,518)	4,177	(3,048)
Intercompany dividend paid	0	0	0
Capital contributions received	0	0	0
Other financing activities	43	0	0
Net cash used in financing activities	(380)	3,972	(297)
Effect of exchange rate changes on cash and cash equivalents	0	0	0
Net change in cash and cash equivalents	0	(4)	5
Cash and cash equivalents at beginning of period	1	5	0
Cash and cash equivalents at end of period	1	1	5
Subsidiary Guarantors | Reportable Legal Entities | CIFSA Senior Notes
Operating Activities:
Net cash provided by operating activities	323	264	302
Investing Activities:
Acquisitions, net of cash acquired	0	0	0
Proceeds from sale of businesses		0
Additions to property, plant, and equipment	0	0	0
Purchases of investments	0	(25)	0
Sales and maturities of investments	0	0	0
Capital contributions paid	0	(4,200)	0
Other investing activities, net	82	0	0
Net cash (used in) provided by investing activities	82	(4,225)	0
Financing Activities:
Change in current debt obligations, net	(1,696)	(205)	901
Issuance of long-term debt	7,791	0	1,850
Payments on long-term debt	0	0	0
Dividends to shareholders	0	0	0
Issuance of ordinary shares	0	0	0
Repurchase of ordinary shares	0	0	0
Net intercompany loan borrowings (repayments)	(6,543)	4,162	(3,048)
Intercompany dividend paid	0	0	0
Capital contributions received	0	0	0
Other financing activities	43	0	0
Net cash used in financing activities	(405)	3,957	(297)
Effect of exchange rate changes on cash and cash equivalents	0	0	0
Net change in cash and cash equivalents	0	(4)	5
Cash and cash equivalents at beginning of period	1	5	0
Cash and cash equivalents at end of period	1	1	5
Subsidiary Non-guarantors | Reportable Legal Entities | Medtronic Notes
Operating Activities:
Net cash provided by operating activities	7,691	16,419	4,721
Investing Activities:
Acquisitions, net of cash acquired	(1,590)	(137)	(384)
Proceeds from sale of businesses		6,058
Additions to property, plant, and equipment	(821)	(728)	(885)
Purchases of investments	(2,532)	(3,124)	(4,533)
Sales and maturities of investments	4,607	4,249	5,308
Capital contributions paid	0	0	0
Other investing activities, net	(46)	(22)	22
Net cash (used in) provided by investing activities	(382)	6,296	(472)
Financing Activities:
Change in current debt obligations, net	983	(44)	5
Issuance of long-term debt	3	21	140
Payments on long-term debt	(1,766)	(1,204)	(363)
Dividends to shareholders	0	0	0
Issuance of ordinary shares	0	0	0
Repurchase of ordinary shares	0	0	0
Net intercompany loan borrowings (repayments)	108	(16,464)	(1,347)
Intercompany dividend paid	(5,919)	(10,572)	(887)
Capital contributions received	115	4,259	248
Other financing activities	(29)	(94)	(14)
Net cash used in financing activities	(6,505)	(24,098)	(2,218)
Effect of exchange rate changes on cash and cash equivalents	(78)	114	65
Net change in cash and cash equivalents	726	(1,269)	2,096
Cash and cash equivalents at beginning of period	3,648	4,917	2,821
Cash and cash equivalents at end of period	4,374	3,648	4,917
Subsidiary Non-guarantors | Reportable Legal Entities | CIFSA Senior Notes
Operating Activities:
Net cash provided by operating activities	6,780	4,339	5,829
Investing Activities:
Acquisitions, net of cash acquired	(1,827)	(137)	(1,324)
Proceeds from sale of businesses		6,058
Additions to property, plant, and equipment	(1,134)	(1,068)	(1,254)
Purchases of investments	(2,532)	(3,200)	(4,371)
Sales and maturities of investments	4,683	4,252	5,356
Capital contributions paid	0	0	0
Other investing activities, net	(46)	(22)	22
Net cash (used in) provided by investing activities	(856)	5,883	(1,571)
Financing Activities:
Change in current debt obligations, net	983	(44)	5
Issuance of long-term debt	3	21	290
Payments on long-term debt	(7,216)	(6,220)	(863)
Dividends to shareholders	0	0	0
Issuance of ordinary shares	0	0	0
Repurchase of ordinary shares	0	0	0
Net intercompany loan borrowings (repayments)	(4,477)	(9,969)	(60)
Intercompany dividend paid	(750)	(1,048)	(1,997)
Capital contributions received	6,364	5,757	537
Other financing activities	(29)	(94)	26
Net cash used in financing activities	(5,122)	(11,597)	(2,062)
Effect of exchange rate changes on cash and cash equivalents	(78)	114	65
Net change in cash and cash equivalents	724	(1,261)	2,261
Cash and cash equivalents at beginning of period	3,668	4,929	2,668
Cash and cash equivalents at end of period	$ 4,392	$ 3,668	$ 4,929

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Schedule II (Details) - USD ($) $ in Millions	12 Months Ended
	Apr. 26, 2019	Apr. 27, 2018	Apr. 28, 2017
Allowance for Doubtful Accounts
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Fiscal Year	$ 193	$ 155	$ 161
Charges to Income	78	52	39
Charges to Other Accounts	0	0	0
Other Changes (Debit) Credit	(81)	(14)	(45)
Balance at End of Fiscal Year	190	193	155
Inventory Reserve
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Fiscal Year	452	443	426
Charges to Income	224	170	155
Charges to Other Accounts	0	0	28
Other Changes (Debit) Credit	(155)	(161)	(166)
Balance at End of Fiscal Year	521	452	443
Deferred Tax Valuation Allowance
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Fiscal Year	7,166	6,311	7,032
Charges to Income	378	434	101
Charges to Other Accounts	(11)	21	6
Other Changes (Debit) Credit	(770)	(171)	(524)
Effects of currency fluctuations	(463)	571	(304)
Balance at End of Fiscal Year	$ 6,300	$ 7,166	$ 6,311

XML

Label	Element	Value
Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 296,000,000	[1]

[1] The cumulative effect of change in accounting principle in fiscal year 2018 resulted from the adoption of accounting guidance that requires the tax effect of intra-entity transactions, other than sales of inventory, to be recognized when the transaction occurs, and accounting guidance which permitted reclassification of stranded tax effects resulting from the enactment of comprehensive U.S. tax legislation from accumulated other comprehensive loss to retained earnings.