Revenue

6 Months Ended

Oct. 28, 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 and six months ended October 28, 2022 and October 29, 2021:

	Three months ended				Six months ended
(in millions)	October 28, 2022		October 29, 2021		October 28, 2022		October 29, 2021
Cardiac Rhythm & Heart Failure	$	1,431	$	1,471	$	2,824	$	2,954
Structural Heart & Aortic	757		750		1,499		1,537
Coronary & Peripheral Vascular	584		606		1,163		1,226
Cardiovascular	2,773		2,827		5,486		5,717
Surgical Innovations	1,398		1,497		2,736		3,051
Respiratory, Gastrointestinal, & Renal	671		802		1,335		1,570
Medical Surgical	2,070		2,299		4,071		4,621
Cranial & Spinal Technologies	1,081		1,067		2,124		2,189
Specialty Therapies	686		634		1,353		1,275
Neuromodulation	419		435		824		875
Neuroscience	2,186		2,136		4,301		4,340
Diabetes	556		585		1,098		1,157
Total	$	7,585	$	7,847	$	14,955	$	15,835

The table below illustrates net sales by market geography for each segment for the three and six months ended October 28, 2022 and October 29, 2021:

	U.S.(1)				Non-U.S. Developed Markets(2)				Emerging Markets(3)
	Three months ended				Three months ended				Three months ended
(in millions)	October 28, 2022		October 29, 2021		October 28, 2022		October 29, 2021		October 28, 2022		October 29, 2021
Cardiovascular	$	1,424	$	1,373	$	802	$	948	$	546	$	506
Medical Surgical	905		970		719		841		446		488
Neuroscience	1,512		1,394		382		433		292		309
Diabetes	228		261		254		256		74		69
Total	$	4,069	$	3,997	$	2,157	$	2,478	$	1,359	$	1,372
	U.S.(1)				Non-U.S. Developed Markets(2)				Emerging Markets(3)
	Six months ended				Six months ended				Six months ended
(in millions)	October 28, 2022		October 29, 2021		October 28, 2022		October 29, 2021		October 28, 2022		October 29, 2021
Cardiovascular	$	2,722	$	2,793	$	1,694	$	1,952	$	1,070	$	972
Medical Surgical	1,748		1,959		1,485		1,710		838		951
Neuroscience	2,931		2,840		788		898		582		602
Diabetes	434		506		518		519		145		132
Total	$	7,835	$	8,098	$	4,485	$	5,079	$	2,635	$	2,658

(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 October 28, 2022, $1.0 billion of rebates were classified as other accrued expenses, and $536 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 October 28, 2022 and April 29, 2022 was $380 million and $399 million, respectively. At October 28, 2022 and April 29, 2022, $293 million and $305 million was included in other accrued expenses, respectively, and $87 million and $94 million was included in other liabilities, respectively. During the six months ended October 28, 2022, the Company recognized $160 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 October 28, 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 $719 million. The Company expects to recognize revenue on the majority of these remaining performance obligations over the next three years.