XML 48 R29.htm IDEA: XBRL DOCUMENT v3.7.0.1
Segment and Geographic Information
 12 Months Ended
Apr. 28, 2017
Segment Reporting [Abstract]  
Segment and Geographic Information
Segment and Geographic Information
The Company’s management evaluates performance and allocates resources based on income before interest expense, net, the provision for income taxes and amortization of intangible assets, not including centralized distribution costs and corporate charges, as presented in the table below. The accounting policies of the reportable segments are the same as those described in Note 1. The financial information that is regularly reviewed by the Company's chief operating decision maker to assess performance and allocate resources changed during fiscal year 2017. As a result, the Company has revised the disclosure for prior periods to align with current presentation.
The Company’s Cardiac and Vascular Group consists of three divisions: Cardiac Rhythm & Heart Failure, Coronary & Structural Heart, and Aortic & Peripheral Vascular. The primary products sold by this operating segment include products for cardiac rhythm disorders and cardiovascular disease, as well as services to diagnose, treat, and manage heart and vascular-related disorders and diseases. The products produced by this operating segment require highly-skilled, technical manufacturing processes and are distributed through direct sales representatives in the U.S. and through direct sales representatives and indirect distributors outside of the U.S. Further, the primary customers of this operating segment are surgeons and specialists and the regulatory approval process for the Cardiac and Vascular Group is similar across all divisions.
The Company’s Minimally Invasive Therapies Group consists of two divisions: Surgical Solutions and Patient Monitoring & Recovery. The primary products sold by this operating segment include those which enhance patient outcomes through minimally invasive solutions. These products include those for advanced and general surgical care and patient monitoring, patient care, renal care, and airway and ventilation. Further, the regulatory approval process for the Minimally Invasive Therapies Group is similar across all divisions.
In the first quarter of fiscal year 2017, the Company realigned the divisions within the Restorative Therapies Group. The Company’s Restorative Therapies Group consists of four divisions: Spine, Brain Therapies, Specialty Therapies, and Pain Therapies. The primary customers of this operating segment include spinal surgeons, neurosurgeons, and pain specialists. The products sold by this operating segment are distributed through direct sales representatives in the U.S. and through direct sales representatives and indirect distributors outside of the U.S. Further, the regulatory approval process for the Restorative Therapies Group is similar across all divisions.
The primary products sold by the Company’s Diabetes Group include those for diabetes management, and the regulatory approval process for the Diabetes Group is similar across all divisions.
Net sales of the Company’s reportable segments include end-customer revenues from the sale of products each reportable segment develops and manufactures or distributes. Segment disclosures are on a performance basis consistent with internal management reporting. Certain items are at corporate and centralized and are not allocated to the segments. Net sales and earnings before other adjustments by reportable segment are as follows:
 
Fiscal Year
(in millions)
2017
 
2016
 
2015
Cardiac and Vascular Group
$
10,498

 
$
10,196

 
$
9,361

Minimally Invasive Therapies Group
9,919

 
9,563

 
2,387

Restorative Therapies Group
7,366

 
7,210

 
6,751

Diabetes Group
1,927

 
1,864

 
1,762

Total
$
29,710

 
$
28,833

 
$
20,261


 
Fiscal Year
(in millions)
2017
 
2016
 
2015
Cardiac and Vascular Group
$
4,134

 
$
3,986

 
$
3,836

Minimally Invasive Therapies Group
3,434

 
3,373

 
775

Restorative Therapies Group
2,868

 
2,671

 
2,445

Diabetes Group
690

 
667

 
663

Reportable segments' EBITA before other adjustments(1)
11,126

 
10,697

 
7,719

Impact of inventory step-up
(38
)
 
(226
)
 
(623
)
Impact of product technology upgrade commitment
—

 
—

 
(74
)
Special charge (gain), net
(100
)
 
(70
)
 
38

Restructuring charges, net (2)
(373
)
 
(299
)
 
(252
)
Certain litigation charges
(300
)
 
(26
)
 
(42
)
Acquisition-related items (2)
(230
)
 
(283
)
 
(550
)
Amortization of intangible assets
(1,980
)
 
(1,931
)
 
(733
)
Centralized distribution costs
(1,543
)
 
(1,177
)
 
(794
)
Interest expense, net
(728
)
 
(955
)
 
(280
)
Corporate
(1,232
)
 
(1,394
)
 
(923
)
Income before provision for income taxes
$
4,602

 
$
4,336

 
$
3,486


(1)
Represents earnings by segment before interest expense, net, amortization of intangible assets, corporate charges, and centralized distribution costs.
(2)
Restructuring charges, net and acquisition-related items within this table include the impact of amounts recognized within cost of products sold in the consolidated statements of income.
The following table presents the Company’s assets by reportable segment:
(in millions)
April 28, 2017
 
April 29, 2016
Cardiac and Vascular Group
$
15,192

 
$
13,563

Minimally Invasive Therapies Group(1)
49,249

 
52,227

Restorative Therapies Group
15,441

 
14,564

Diabetes Group
2,641

 
2,592

Total assets of reportable segments
82,523

 
82,946

Corporate
17,293

 
16,698

Total Assets
$
99,816

 
$
99,644


(1)
Assets of $6.3 billion classified as held for sale were included within Minimally Invasive Therapies Group at April 28, 2017.
Geographic Information
The following table presents net sales to external customers and property, plant, and equipment, net by geographic region:
 
Net sales to external customers
 
Property, plant, and equipment, net
(in millions)
2017
 
2016
 
2015
 
April 28, 2017
 
April 29, 2016
Americas(1)
$
17,939

 
$
17,578

 
$
12,125

 
$
3,270

 
$
3,728

EMEA(2)
6,739

 
6,700

 
5,064

 
709

 
708

Asia Pacific
3,443

 
3,060

 
2,059

 
192

 
220

Greater China
1,589

 
1,495

 
1,013

 
190

 
185

Consolidated
$
29,710

 
$
28,833

 
$
20,261

 
$
4,361

 
$
4,841

(1)
The U.S., which is included in the Americas, had net sales to external customers of $16.7 billion, $16.4 billion, and $11.3 billion in fiscal years 2017, 2016, and 2015, respectively. Property, plant, and equipment, net includes $2.5 billion and $3.3 billion in the U.S. in fiscal years 2017 and 2016, respectively.
(2)
EMEA consists of the following regions: Europe, Middle East, and Africa. Sales to Ireland were insignificant during all periods presented. Property, plant, and equipment, net includes $171 million and $169 million in Ireland in fiscal years 2017 and 2016, respectively.
No single customer represented over 10 percent of the Company’s consolidated net sales in fiscal years 2017, 2016, or 2015.