Segment and Geographic Information

3 Months Ended

Jul. 26, 2013

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

Segment information

The Company’s management evaluates performance and allocates resources based on profit and loss from operations before income taxes and interest expense, net, not including special charges, restructuring charges, and acquisition-related items. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended April 26, 2013.

In the third quarter of fiscal year 2013, the Company revised its management organizational structure and separated the Diabetes business from the Restorative Therapies Group. This change did not impact the manner in which the Company internally manages and reports the results of the Diabetes business or the Restorative Therapies Group. As a result, for fiscal year 2013, the Company continued to function in two reportable segments and two operating segments, consisting of the Cardiac and Vascular Group and the Restorative Therapies Group. In the first quarter of fiscal year 2014, the Company amended the way in which management evaluates performance and allocates resources for the Diabetes business including separating the Diabetes business from the Restorative Therapies Group. As a result, the Company began to operate under three reportable segments and three operating segments with the Diabetes business operating as a separate group. Accordingly, the segment information for the prior year has been restated to present three reportable segments.

The Company's Cardiac and Vascular Group consists of four businesses: Cardiac Rhythm Disease Management (CRDM), Coronary, Structural Heart, and Endovascular. The primary products sold by this operating segment include those for cardiac rhythm disorders and cardiovascular disease. The Company's Restorative Therapies Group consists of three businesses: Spine, Neuromodulation, and Surgical Technologies. The primary products sold by this operating segment include those for spinal conditions and musculoskeletal trauma, neurological disorders, urological and digestive disorders, and ear, nose, and throat conditions. The primary products sold by the Company's Diabetes Group include those for diabetes management.

Net sales of the Company’s reportable segments include end-customer revenues from the sale of products they each develop and manufacture or distribute. Net sales and earnings before income taxes by reportable segment are as follows:

	Three months ended
(in millions)	July 26, 2013		July 27, 2012
Cardiac and Vascular Group	$	2,160	$	2,115
Restorative Therapies Group	1,554		1,529
Diabetes Group	369		364
Total Net Sales	$	4,083	$	4,008

	Three months ended
(in millions)	July 26, 2013			July 27, 2012
Cardiac and Vascular Group	$	756		$	738
Restorative Therapies Group	421			399
Diabetes Group	75			90
Total Reportable Segments’ Earnings Before Income Taxes	1,252			1,227
Special charges	(40		)	—
Restructuring charges	(18		)	—
Acquisition-related items	96			(5		)
Interest expense, net	(40		)	(33		)
Corporate	(97		)	(101		)
Earnings Before Income Taxes	$	1,153		$	1,088

The following table presents the Company’s net assets by reportable segment:

(in millions)	July 26, 2013			April 26, 2013
Cardiac and Vascular Group	$	7,245		$	6,941
Restorative Therapies Group	10,068			10,058
Diabetes Group	1,846			1,857
Total Net Assets of Reportable Segments	19,159			18,856
Short-term borrowings	(1,543		)	(910		)
Long-term debt	(9,637		)	(9,741		)
Corporate	10,540			10,466
Total Net Assets	$	18,519		$	18,671

Geographic information

Net sales to external customers by geography are as follows:

	Three months ended
(in millions)	July 26, 2013		July 27, 2012
United States	$	2,196	$	2,227
Europe and Canada	1,046		1,009
Asia-Pacific	656		611
Other Foreign	185		161
Total Net Sales	$	4,083	$	4,008