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Financing Arrangements | 12 Months Ended
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Apr. 25, 2025
Debt Disclosure [Abstract] |
Financing Arrangements | Financing Arrangements Current debt obligations consisted of the following:
(in millions) | April 25, 2025 |  | April 26, 2024
Bank borrowings | $ | 13 |  |  | $ | 13 |
0.250 percent six-year 2019 senior notes | 1,142 |  |  | — |
0.000 percent five-year 2020 senior notes | 1,142 |  |  | — |
2.625 percent three-year 2022 senior notes | 571 |  |  | — |
Finance lease obligations | 6 |  |  | 6 |
Commercial Paper | — |  |  | 1,073 |
Current debt obligations | $ | 2,874 |  |  | $ | 1,092 |
Commercial Paper In January 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 United States Dollar-denominated unsecured commercial paper notes (the 2015 CP Program) on a private placement basis, and in January 2020, Medtronic Luxco entered into various agreements pursuant to which Medtronic Luxco may issue Euro-denominated unsecured commercial paper notes (the 2020 CP Program) on a private placement basis. The maximum aggregate amount outstanding at any time under the 2015 CP Program and the 2020 CP Program together may not exceed the equivalent of $3.5 billion. The Company and Medtronic, Inc. have guaranteed the obligations of Medtronic Luxco under the 2015 CP Program and the 2020 CP Program. There was no commercial paper outstanding at April 25, 2025. During fiscal year 2025, the weighted average original maturity of the commercial paper outstanding was approximately 13 days and the weighted average interest rate was 5.02 percent. There was $1.1 billion commercial paper outstanding at April 26, 2024. During fiscal year 2024, the weighted average original maturity of the commercial paper outstanding was approximately 20 days and the weighted average interest rate was 5.45 percent. The issuance of commercial paper reduces the amount of credit available under the Company's existing credit facility, defined below. Line of Credit In October 2024, Medtronic Luxco, as borrower, entered into an amendment to its 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, extending the maturity date of the Credit Facility to December 2029. 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, we can 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 25, 2025 and April 26, 2024, no amounts were outstanding under the Credit Facility. 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 Company is in compliance with all covenants related to the Credit Facility. The Company's long-term debt obligations consisted of the following:
|  |  | April 25, 2025 |  | April 26, 2024
(in millions, except interest rates) | Maturity by Fiscal Year |  | Amount |  | Effective Interest Rate |  | Amount |  | Effective Interest Rate
0.250 percent six-year 2019 senior notes | 2026 |  | $ | — |  |  | — | % |  | $ | 1,070 |  |  | 0.44 | %
0.000 percent five-year 2020 senior notes | 2026 |  | — |  |  | — |  |  | 1,070 |  |  | 0.23 |
2.625 percent three-year 2022 senior notes | 2026 |  | — |  |  | — |  |  | 535 |  |  | 2.86 |
1.125 percent eight-year 2019 senior notes | 2027 |  | 1,714 |  |  | 1.25 |  |  | 1,606 |  |  | 1.25 |
4.250 percent five-year 2023 senior notes | 2028 |  | 1,000 |  |  | 4.42 |  |  | 1,000 |  |  | 4.42 |
3.000 percent six-year 2022 senior notes | 2029 |  | 1,142 |  |  | 3.09 |  |  | 1,070 |  |  | 3.10 |
0.375 percent eight-year 2020 senior notes | 2029 |  | 1,142 |  |  | 0.51 |  |  | 1,070 |  |  | 0.51 |
3.650 percent five-year 2024 senior notes | 2030 |  | 971 |  |  | 3.74 |  |  | — |  |  | — |
1.625 percent twelve-year 2019 senior notes | 2031 |  | 1,142 |  |  | 1.75 |  |  | 1,070 |  |  | 1.75 |
1.000 percent twelve-year 2019 senior notes | 2032 |  | 1,142 |  |  | 1.06 |  |  | 1,070 |  |  | 1.06 |
3.125 percent nine-year 2022 senior notes | 2032 |  | 1,142 |  |  | 3.25 |  |  | 1,070 |  |  | 3.25 |
0.750 percent twelve-year 2020 senior notes | 2033 |  | 1,142 |  |  | 0.81 |  |  | 1,070 |  |  | 0.81 |
4.500 percent ten-year 2023 senior notes | 2033 |  | 1,000 |  |  | 4.62 |  |  | 1,000 |  |  | 4.62 |
3.375 percent twelve-year 2022 senior notes | 2035 |  | 1,142 |  |  | 3.44 |  |  | 1,070 |  |  | 3.44 |
4.375 percent twenty-year 2015 senior notes | 2035 |  | 1,932 |  |  | 4.47 |  |  | 1,932 |  |  | 4.47 |
3.875 percent twelve-year 2024 senior notes | 2037 |  | 971 |  |  | 3.93 |  |  | — |  |  | — |
6.550 percent thirty-year 2007 CIFSA senior notes | 2038 |  | 253 |  |  | 4.67 |  |  | 253 |  |  | 4.67 |
2.250 percent twenty-year 2019 senior notes | 2039 |  | 1,142 |  |  | 2.34 |  |  | 1,070 |  |  | 2.34 |
6.500 percent thirty-year 2009 senior notes | 2039 |  | 158 |  |  | 6.56 |  |  | 158 |  |  | 6.56 |
1.500 percent twenty-year 2019 senior notes | 2040 |  | 1,142 |  |  | 1.58 |  |  | 1,070 |  |  | 1.58 |
5.550 percent thirty-year 2010 senior notes | 2040 |  | 224 |  |  | 5.58 |  |  | 224 |  |  | 5.58 |
1.375 percent twenty-year 2020 senior notes | 2041 |  | 1,142 |  |  | 1.46 |  |  | 1,070 |  |  | 1.46 |
4.500 percent thirty-year 2012 senior notes | 2042 |  | 105 |  |  | 4.54 |  |  | 105 |  |  | 4.54 |
4.000 percent thirty-year 2013 senior notes | 2043 |  | 305 |  |  | 4.10 |  |  | 305 |  |  | 4.09 |
4.150 percent nineteen-year 2024 senior notes | 2044 |  | 685 |  |  | 4.20 |  |  | — |  |  | — |
4.625 percent thirty-year 2014 senior notes | 2044 |  | 127 |  |  | 4.67 |  |  | 127 |  |  | 4.67 |
4.625 percent thirty-year 2015 senior notes | 2045 |  | 1,813 |  |  | 4.69 |  |  | 1,813 |  |  | 4.69 |
1.750 percent thirty-year 2019 senior notes | 2050 |  | 1,142 |  |  | 1.87 |  |  | 1,070 |  |  | 1.87 |
1.625 percent thirty-year 2020 senior notes | 2051 |  | 1,142 |  |  | 1.75 |  |  | 1,070 |  |  | 1.75 |
4.150 percent twenty-nine-year 2024 senior notes | 2054 |  | 800 |  |  | 4.19 |  |  | — |  |  | — |
Finance lease obligations | 2027-2040 |  | 52 |  |  | 10.00 |  |  | 55 |  |  | 10.17 |
Debt discount, net | 2027-2054 |  | (59) |  |  | — |  |  | (55) |  |  | — |
Deferred financing costs | 2027-2054 |  | (117) |  |  | — |  |  | (110) |  |  | — |
Long-term debt |  |  | $ | 25,642 |  |  |  |  | $ | 23,932 |  |  |
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 Company is in compliance with all covenants related to the Senior Notes. In June 2024, Medtronic Inc. issued four tranches of EUR-denominated Senior Notes with an aggregate principal of €3.0 billion, with maturities ranging from fiscal year 2030 to 2054, resulting in cash proceeds of approximately $3.2 billion, net of discounts and issuance costs. In anticipation of the Euro-denominated debt issuance, the Company entered into forward currency exchange rate contracts to manage the exposure to exchange rate movements. These contracts were settled in conjunction with the issuance of the June 2024 Notes. Term Loan Agreements In May 2022, Medtronic Luxco entered into a term loan agreement (Fiscal 2023 Loan Agreement) by and among Medtronic Luxco, Medtronic plc, Medtronic, Inc., and Mizuho Bank, Ltd. as administrative agent and as lender. The Fiscal 2023 Loan Agreement provides an unsecured term loan in an aggregate principal amount of up to ¥300 billion with a term of 364 days. Borrowings under the Fiscal 2023 Loan Agreement bear interest at the TIBOR Rate (as defined in the Fiscal 2023 Loan Agreement) plus a margin of 0.40% per annum. Medtronic plc and Medtronic, Inc. guaranteed the obligations of Medtronic Luxco under the Fiscal 2023 Loan Agreement. In May and June 2022, Medtronic Luxco borrowed an aggregate of ¥297 billion, or approximately $2.3 billion, of the term loan, under the Fiscal 2023 Loan Agreement. The Company used the net proceeds of the borrowings to fund the early redemption of $1.9 billion of Medtronic Inc.'s 3.500% Senior Notes due 2025 for $1.9 billion of total consideration, and $368 million of Medtronic Luxco's 3.350% Senior Notes due 2027 for $376 million of total consideration. The Company recognized a total loss on debt extinguishment of $53 million within interest expense, net in the consolidated statements of income during fiscal year 2023, which primarily includes cash premiums and accelerated amortization of deferred financing costs and debt discounts and premiums. During the fourth quarter of fiscal year 2023, the Company repaid the term loan in full, including interest. Contractual maturities of debt for the next five fiscal years and thereafter, excluding deferred financing costs and debt discount, net, are as follows:
(in millions) |
2026 | $ | 2,874 |
2027 | 1,721 |
2028 | 1,006 |
2029 | 2,290 |
2030 | 977 |
Thereafter | 19,824 |
Total | $ | 28,691 |
Interest expense on outstanding borrowings, including amortization of debt issuance costs and debt discounts and premiums, and the global liquidity structures is recognized in interest expense, net in the consolidated statements of income. For fiscal years 2025, 2024, and 2023, there was $913 million, $916 million, and $743 million, respectively, of interest expense on outstanding borrowings, including amortization of debt issuance costs and debt discounts and premiums, and the global liquidity structures. Financial Instruments Not Measured at Fair Value At April 25, 2025, the estimated fair value of the Company’s Senior Notes was $26.2 billion compared to a principal value of $28.6 billion. At April 26, 2024, the estimated fair value was $21.2 billion compared to a principal value of $24.0 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. Supplier Financing Program The Company participates in a supplier financing program that provides participating suppliers the ability to finance payment obligations from the Company with third-party financial institutions in order to receive earlier payment. The Company’s standard payment term is 90 days. The Company’s outstanding payables to its suppliers, including amounts due and payment terms, are not affected by a supplier’s participation in the program. At April 25, 2025 and April 26, 2024, the Company had $100 million and $96 million of outstanding payables, respectively, associated with the supplier financing program recorded in accounts payable in the consolidated balance sheets. The following table presents a roll-forward of outstanding payables confirmed as valid associated with the program during fiscal year 2025:
| Fiscal Year
(in millions) | 2025 |  |
Beginning Balance | $ | 96 |  |  |
Invoices confirmed during the year | 522 |  |  |
Confirmed invoices paid during the year | (517) |  |  |
Ending Balance | $ | 100 |  |  |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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