Segment and Geographic Information

12 Months Ended

Apr. 26, 2019

The Company’s organizational structure is based upon four principal operating and reportable segments: the Cardiac and Vascular Group, the Minimally Invasive Therapies Group, the Restorative Therapies Group, and the Diabetes Group. The Company's management has chosen to organize the entity based upon therapy solutions provided by each segment. The four principal segments are strategic businesses that are managed separately, as each one develops and manufactures products and provides services oriented toward targeted therapy solutions.

The primary products and services from which the Cardiac and Vascular Group segment derives its revenues include products for the diagnosis, treatment, and management of cardiac rhythm disorders and cardiovascular disease, as well as services to diagnose, treat, and manage heart- and vascular-related disorders and diseases.

The primary products and services from which the Minimally Invasive Therapies Group segment derives its revenues include those focused on diseases of the respiratory system, gastrointestinal tract, renal system, lungs, pelvic region, kidneys, obesity, and other preventable complications.

The primary products and services from which the Restorative Therapies Group segment derives its revenues include those focused on neurostimulation therapies and drug delivery systems for the treatment of chronic pain, as well as various areas of the spine and brain, along with pelvic health and conditions of the ear, nose, and throat.

The primary products from which the Diabetes Group segment derives its revenues include those focused on diabetes management, including insulin pumps, continuous glucose monitoring systems, insulin pump consumables, and diabetes therapy management software.

Segment disclosures are on a performance basis, consistent with internal management reporting. Net sales of the Company's segments include end-customer revenues from the sale of products the segment develops, manufactures, and distributes. There are certain corporate and centralized expenses that are not allocated to the segments. The Company's management evaluates the performance of the segments and allocates resources based on net sales and segment earnings before interest, taxes, and amortization ("Segment EBITA"). Segment EBITA represents income before income taxes, excluding interest expense, interest income, amortization of intangible assets, centralized distribution costs, certain corporate charges, and other items not allocated to the segments.

The accounting policies of the segments are the same as those described in Note 1. Certain depreciable assets may be recorded by one segment, while the depreciation expense is allocated to another segment. The allocation of depreciation expense is based on the proportion of the assets used by each segment.

The following tables present reconciliations of financial information from the segments to the applicable line items in the Company's consolidated financial statements:

Net Sales



	Fiscal Year
(in millions)	2019		2018		2017
Cardiac and Vascular Group	$	11,505	$	11,354	$	10,498
Minimally Invasive Therapies Group	8,478		8,716		9,919
Restorative Therapies Group	8,183		7,743		7,366
Diabetes Group	2,391		2,140		1,927
Total	$	30,557	$	29,953	$	29,710

Segment EBITA



	Fiscal Year
(in millions)	2019			2018			2017
Cardiac and Vascular Group	$	4,541		$	4,460		$	4,134
Minimally Invasive Therapies Group	3,266			3,346			3,434
Restorative Therapies Group	3,323			3,058			2,868
Diabetes Group	739			634			690
Segment EBITA	11,869			11,498			11,126
Interest expense	(1,444		)	(1,146		)	(1,094		)
Interest income	283			397			366
Amortization of intangible assets	(1,764		)	(1,823		)	(1,980		)
Corporate	(1,253		)	(1,437		)	(1,232		)
Centralized distribution costs	(1,688		)	(1,936		)	(1,543		)
Restructuring and associated costs	(407		)	(107		)	(373		)
Acquisition-related items	(88		)	(132		)	(230		)
Certain litigation charges	(166		)	(61		)	(300		)
Gain/(loss) on minority investments	62			—			—
IPR&D charges	(58		)	(46		)	—
Exit of businesses	(149		)	—			—
Divestiture-related items	—			(115		)	—
Gain on sale of businesses	—			697			—
Contribution to Medtronic Foundation	—			(80		)	(100		)
Hurricane Maria	—			(34		)	—
Impact of inventory step-up	—			—			(38		)
Income before income taxes	$	5,197		$	5,675		$	4,602

Total Assets and Depreciation Expense



	Total Assets				Depreciation Expense
(in millions)	April 26, 2019		April 27, 2018		2019		2018		2017
Cardiac and Vascular Group	$	15,453	$	15,407	$	194	$	183	$	180
Minimally Invasive Therapies Group	41,186		43,002		206		217		358
Restorative Therapies Group	16,825		15,245		217		146		167
Diabetes Group	3,095		2,900		34		29		29
Segments	76,559		76,554		651		575		734
Corporate	13,135		14,839		244		246		203
Total	$	89,694	$	91,393	$	895	$	821	$	937

Geographic Information

Net sales are attributed to the country based on the location of the customer taking possession of the products or in which the services are rendered. Geographic property, plant, and equipment are attributed to the country based on the physical location of the assets.

The following table presents net sales for fiscal years 2019, 2018, and 2017, and property, plant, and equipment, net at April 26, 2019 and April 27, 2018 for the Company's country of domicile, countries with significant concentrations, and all other countries:



	Net sales						Property, plant, and equipment, net
(in millions)	2019		2018		2017		April 26, 2019		April 27, 2018
Ireland	$	91	$	85	$	69	$	156	$	149

United States	16,194		15,875		16,663		3,122		2,927
Rest of world	14,272		13,993		12,978		1,397		1,528
Total other countries, excluding Ireland	30,466		29,868		29,641		4,519		4,455
Total	$	30,557	$	29,953	$	29,710	$	4,675	$	4,604

No single customer represented over 10 percent of the Company’s consolidated net sales in fiscal years 2019, 2018, or 2017.