Revenue

3 Months Ended

Jul. 29, 2022

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 healthcare systems, clinics, third-party healthcare providers, distributors, and other institutions, including governmental healthcare programs and group purchasing organizations.

The table below illustrates net sales by segment and division for the three months ended July 29, 2022 and July 30, 2021:

	Three months ended
(in millions)	July 29, 2022		July 30, 2021
Cardiac Rhythm & Heart Failure	$	1,393	$	1,483
Structural Heart & Aortic	741		787
Coronary & Peripheral Vascular	579		620
Cardiovascular	2,713		2,890
Surgical Innovations	1,338		1,554
Respiratory, Gastrointestinal, & Renal	664		768
Medical Surgical	2,001		2,322
Cranial & Spinal Technologies	1,043		1,123
Specialty Therapies	667		641
Neuromodulation	405		440
Neuroscience	2,115		2,204
Diabetes	541		572
Total	$	7,371	$	7,987

The table below illustrates net sales by market geography for each segment for the three months ended July 29, 2022 and July 30, 2021:

	U.S.(1)				Non-U.S. Developed Markets(2)				Emerging Markets(3)
	Three months ended				Three months ended				Three months ended
(in millions)	July 29, 2022		July 30, 2021		July 29, 2022		July 30, 2021		July 29, 2022		July 30, 2021
Cardiovascular	$	1,298	$	1,420	$	892	$	1,003	$	523	$	467
Medical Surgical	843		990		767		869		392		463
Neuroscience	1,419		1,446		407		465		290		293
Diabetes	206		245		264		263		72		63
Total	$	3,766	$	4,101	$	2,328	$	2,601	$	1,276	$	1,286

(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.

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 29, 2022, $955 million of rebates were classified as other accrued expenses, and $576 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheet. At April 29, 2022, $981 million of rebates were classified as other accrued expenses, and $548 million of rebates were classified as a reduction of accounts receivable in the consolidated balance sheet.

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 29, 2022 and April 29, 2022 was $391 million and $399 million, respectively. At July 29, 2022 and April 29, 2022, $302 million and $305 million was included in other accrued expenses, respectively, and $90 million and $94 million was included in other liabilities, respectively. During the three months ended July 29, 2022, the Company recognized $87 million of revenue that was included in deferred revenue as of April 29, 2022.

Remaining performance obligations include goods and services that have not yet been delivered or provided under existing, noncancellable contracts with minimum purchase commitments. At July 29, 2022, 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 $801 million. The Company expects to recognize revenue on the majority of these remaining performance obligations over the next three years.