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Segment and Geographic Information
 6 Months Ended
Oct. 26, 2012
Segment Reporting [Abstract]  
Segment and Geographic Information

Note 20 – Segment and Geographic Information

 

Segment information

 

On January 30, 2012, the Company completed its sale of Physio-Control. Beginning in the third quarter of fiscal year 2012, the results of operations, assets, and liabilities of the Physio-Control business, which were previously presented as a component of the Cardiac and Vascular Group operating segment, are classified as discontinued operations for all periods presented, and therefore, are no longer presented in the Cardiac and Vascular Group operating segment. See Note 3 for further information regarding discontinued operations.

 

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 four businesses: Spine, Neuromodulation, Diabetes, 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, diabetes, and ear, nose, and throat conditions.

 

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 restructuring charges, net, certain litigation charges, net, 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 27, 2012.

 

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
  October 26,  October 28, October 26,  October 28,
(in millions)2012 2011 2012 2011
Cardiac and Vascular Group $ 2,137 $2,098 $ 4,252 $ 4,201
Restorative Therapies Group   1,958  1,925   3,851   3,768
Total Net Sales $ 4,095 $ 4,023 $ 8,103 $ 7,969

  Three months ended Six months ended
  October 26,  October 28, October 26,  October 28,
(in millions) 2012 2011 2012 2011
Cardiac and Vascular Group $ 668 $ 640 $ 1,406 $ 1,350
Restorative Therapies Group   553   481   1,042   971
Total Reportable Segments' Earnings Before Income Taxes   1,221   1,121   2,448   2,321
Certain litigation charges, net   (245)   -   (245)   -
Acquisition-related items   (6)   24   (11)   16
Interest expense, net   (24)   (38)   (57)   (70)
Corporate   (92)   (64)   (193)   (206)
Earnings From Continuing Operations Before Income Taxes $ 854 $ 1,043 $ 1,942 $ 2,061

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

  October 26,  April 27,
(in millions)2012 2012
Cardiac and Vascular Group $ 6,880 $7,004
Restorative Therapies Group   11,328  11,313
Total Net Assets of Reportable Segments   18,208   18,317
Short-term borrowings   (4,097)   (3,274)
Long-term debt   (7,355)   (7,359)
Corporate   10,419   9,429
Total Net Assets $ 17,175 $ 17,113

Geographic information            
             
Net sales to external customers by geography are as follows:            
  Three months ended Six months ended
  October 26,  October 28, October 26,  October 28,
(in millions)2012 2011 2012 2011
United States $ 2,289 $2,237 $ 4,516 $4,383
Europe and Canada   970   1,027   1,978   2,091
Asia Pacific  655  603   1,266   1,186
Other Foreign  181  156  343  309
Total Net Sales $ 4,095 $ 4,023 $ 8,103 $ 7,969