XML 27 R27.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment and Geographic Information
 6 Months Ended
Oct. 25, 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
 
Six months ended
(in millions)
October 25,
2013
 
October 26,
2012
 
October 25,
2013
 
October 26,
2012
Cardiac and Vascular Group
$
2,199

 
$
2,137

 
$
4,359

 
$
4,252

Restorative Therapies Group
1,602

 
1,580

 
3,156

 
3,109

Diabetes Group
393

 
378

 
762

 
742

Total Net Sales
$
4,194

 
$
4,095

 
$
8,277

 
$
8,103


 
Three months ended
 
Six months ended
(in millions)
October 25,
2013
 
October 26,
2012
 
October 25,
2013
 
October 26,
2012
Cardiac and Vascular Group
$
758

 
$
668

 
$
1,514

 
$
1,406

Restorative Therapies Group
443

 
444

 
864

 
843

Diabetes Group
107

 
109

 
182

 
199

Total Reportable Segments’ Earnings Before Income Taxes
1,308

 
1,221

 
2,560

 
2,448

Special charges
—

 
—

 
(40
)
 
—

Restructuring charges
—

 
—

 
(18
)
 
—

Certain litigation charges, net
(24
)
 
(245
)
 
(24
)
 
(245
)
Acquisition-related items
—

 
(6
)
 
96

 
(11
)
Interest expense, net
(33
)
 
(24
)
 
(73
)
 
(57
)
Corporate
(135
)
 
(92
)
 
(232
)
 
(193
)
Earnings Before Income Taxes
$
1,116

 
$
854

 
$
2,269

 
$
1,942


The following table presents the Company’s net assets by reportable segment:
(in millions)
October 25,
2013
 
April 26,
2013
Cardiac and Vascular Group
$
7,447

 
$
6,941

Restorative Therapies Group
10,031

 
10,058

Diabetes Group
1,807

 
1,857

Total Net Assets of Reportable Segments
19,285

 
18,856

Short-term borrowings
(2,647
)
 
(910
)
Long-term debt
(9,637
)
 
(9,741
)
Corporate
11,743

 
10,466

Total Net Assets
$
18,744

 
$
18,671


Geographic information
Net sales to external customers by geography are as follows:
 
Three months ended
 
Six months ended
(in millions)
October 25,
2013
 
October 26,
2012
 
October 25,
2013
 
October 26,
2012
United States
$
2,327

 
$
2,289

 
$
4,523

 
$
4,516

Europe and Canada
1,035

 
970

 
2,081

 
1,978

Asia-Pacific
632

 
655

 
1,288

 
1,266

Other Foreign
200

 
181

 
385

 
343

Total Net Sales
$
4,194

 
$
4,095

 
$
8,277

 
$
8,103