Revenue

3 Months Ended

Jul. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue

Revenue The Company's revenues are principally derived from device-based medical therapies and services related to cardiac rhythm disorders, cardiovascular disease, renal disease, neurological disorders and diseases, spinal conditions and musculoskeletal trauma, chronic pain, urological and digestive disorders, ear, nose, and throat conditions, and diabetes conditions as well as advanced and general surgical care products, respiratory and monitoring solutions, and neurological surgery technologies. The Company's primary customers include hospitals, clinics, third-party health care providers, distributors, and other institutions, including governmental health care programs and group purchasing organizations.

The table below illustrates net sales by segment and division for the three months ended July 31, 2020 and July 26, 2019:

	Three months ended(1)
(in millions)	July 31, 2020		July 26, 2019
Cardiac Rhythm & Heart Failure	$	1,247	$	1,382
Coronary & Structural Heart	780		941
Aortic, Peripheral, & Venous	405		467
Cardiac & Vascular Group	2,433		2,790
Surgical Innovations	1,080		1,417
Respiratory, Gastrointestinal, & Renal	720		683
Minimally Invasive Therapies Group	1,801		2,100
Cranial & Spinal Technologies	944		1,050
Specialty Therapies	453		563
Neuromodulation	314		398
Restorative Therapies Group	1,712		2,012
Diabetes Group	562		592
Total	$	6,507	$	7,493

(1) Revenue amounts have intentionally been rounded to the nearest million and, therefore, may not sum.

During the first quarter of fiscal year 2021, the Company realigned the divisions within the Restorative Therapies Group to the following: Cranial & Spinal Technologies (includes Core Spine and Biologics, Enabling Technologies, and China Orthopedics), Specialty Therapies (includes ENT, Pelvic Health, and Neurovascular), and Neuromodulation (includes Pain Therapies, Brain Modulation, and Interventional). As a result, net sales for fiscal year 2020 have been recast to adjust for this realignment.

The table below illustrates net sales by market geography for each segment for the three months ended July 31, 2020 and July 26, 2019:

	U.S.(1)(4)				Non-U.S. Developed Markets(2)(4)				Emerging Markets(3)(4)
	Three months ended				Three months ended				Three months ended
(in millions)	July 31, 2020		July 26, 2019		July 31, 2020		July 26, 2019		July 31, 2020		July 26, 2019
Cardiac & Vascular Group	$	1,206	$	1,361	$	853	$	930	$	374	$	499
Minimally Invasive Therapies Group	722		913		719		791		359		396
Restorative Therapies Group	1,136		1,338		376		426		199		248
Diabetes Group	287		306		226		231		48		55
Total	$	3,351	$	3,918	$	2,175	$	2,377	$	981	$	1,198

(1)U.S. includes the United States and U.S. territories.

(2)Non-U.S. developed markets include Japan, Australia, New Zealand, Korea, Canada, and the countries within Western Europe.

(3)Emerging markets include the countries of the Middle East, Africa, Latin America, Eastern Europe, and the countries of Asia that are not included in the non-U.S. developed markets, as defined above.

(4)Revenue amounts have intentionally been rounded to the nearest million and, therefore, may not sum.

The amount of revenue recognized is reduced by sales rebates and returns. Adjustments to rebates and returns reserves are recorded as increases or decreases to revenue. At July 31, 2020, $798 million of rebates were classified as other accrued expenses and $415 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheet. At April 24, 2020, $706 million of rebates were classified as other accrued expenses and $321 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheet. For the three months ended July 31, 2020 and July 26, 2019, adjustments to rebate and return reserves recognized in revenue that were included in the rebate and return reserves at the beginning of the period were not material.

Deferred Revenue and Remaining Performance Obligations

The Company records a deferred revenue liability if a customer pays consideration, or the Company has the right to invoice, before the Company transfers a good or service to the customer. Deferred revenue at July 31, 2020 and April 24, 2020 was $317 million and $303 million, respectively. At July 31, 2020 and April 24, 2020, $227 million and $213 million, respectively, was included in other accrued expenses and $90 million was included in other liabilities. During the three months ended July 31, 2020, the Company recognized $103 million of revenue that was included in deferred revenue as of April 24, 2020. During the three months ended July 26, 2019, the Company recognized $98 million of revenue that was included in deferred revenue as of April 26, 2019.

Remaining performance obligations include deferred revenue and amounts the Company expects to receive for goods and services that have not yet been delivered or provided under existing, noncancellable contracts with minimum purchase commitments. At July 31, 2020, the estimated revenue expected to be recognized in future periods related to unsatisfied performance obligations for executed contracts with an original duration of one year or more was approximately $1.0 billion. The Company expects to recognize revenue on the majority of these remaining performance obligations over the next four years.