Segment and Geographic Information

6 Months Ended

Oct. 28, 2022

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic InformationSegment 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 October 28, 2022. The Company's four principal operating and reportable segments are as follows: Cardiovascular Portfolio, Medical Surgical Portfolio, Neuroscience 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				Six months ended
(in millions)	October 28, 2022		October 29, 2021		October 28, 2022		October 29, 2021
Cardiovascular	$	1,047	$	1,095	$	2,003	$	2,256
Medical Surgical	714		908		1,356		1,823
Neuroscience	876		887		1,691		1,850
Diabetes	96		157		174		290
Segment operating profit	2,733		3,047		5,223		6,219
Interest expense	(118)		(136)		(282)		(273)
Other non-operating income, net	109		66		192		177
Amortization of intangible assets	(421)		(431)		(844)		(866)
Corporate	(402)		(415)		(816)		(864)
Centralized distribution costs	(311)		(516)		(622)		(981)
Restructuring and associated costs	(95)		(77)		(171)		(159)
Acquisition-related items	(2)		13		(38)		(6)
Certain litigation charges, net	—		(34)		—		(60)
RCS impairments / costs	(24)		—		(99)		—
MCS impairments / costs	—		—		—		(726)
IPR&D charges	—		—		—		(90)
Medical device regulations	(37)		(24)		(70)		(45)
Exit of business	(37)		—		(37)		—
Income before income taxes	$	1,395	$	1,493	$	2,438	$	2,326

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 and six months ended October 28, 2022 and October 29, 2021 for the Company's country of domicile, countries with significant concentrations, and all other countries:

	Three months ended				Six months ended
(in millions)	October 28, 2022		October 29, 2021		October 28, 2022		October 29, 2021
Ireland	$	25	$	27	$	47	$	52
United States	4,069		3,997		7,835		8,098
Rest of world	3,491		3,823		7,073		7,685
Total other countries, excluding Ireland	7,560		7,820		14,908		15,783
Total	$	7,585	$	7,847	$	14,955	$	15,835