Segment and Geographic Information

3 Months Ended

Jul. 29, 2022

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

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

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in Note 1 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended April 29, 2022. 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.

There were no changes to the reportable segments during the quarter ended July 29, 2022. The Company's four principal operating and reportable segments are as follows: Cardiovascular Portfolio, Neuroscience Portfolio, Medical Surgical Portfolio, and Diabetes Operating Unit.

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

Segment Operating Profit

	Three months ended
(in millions)	July 29, 2022		July 30, 2021
Cardiovascular	$	956	$	1,161
Medical Surgical	642		914
Neuroscience	815		962
Diabetes	77		133
Segment operating profit	2,490		3,170
Interest expense	(164)		(137)
Other non-operating income, net	83		111
Amortization of intangible assets	(423)		(436)
Corporate	(414)		(449)
Centralized distribution costs	(311)		(464)
Restructuring and associated costs	(76)		(81)
Acquisition-related items	(35)		(19)
Certain litigation charges, net	—		(26)
RCS impairments / costs	(74)		—
MCS impairments / costs	—		(726)
IPR&D charges	—		(90)
Medical device regulations	(32)		(21)
Income before income taxes	$	1,044	$	833

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. The following table presents net sales for the three months ended July 29, 2022 and July 30, 2021 for the Company's country of domicile, countries with significant concentrations, and all other countries:

	Three months ended
(in millions)	July 29, 2022		July 30, 2021
Ireland	$	23	$	26
United States	3,766		4,101
Rest of world	3,582		3,860
Total other countries, excluding Ireland	7,348		7,961
Total	$	7,371	$	7,987