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Expanding Our Role
2008 Annual Report

Table of contents

  • Page 1
    Expanding Our Role 2008 Annual Report

  • Page 2
    ... of chronic disease and changing the lives of nearly 6 million patients worldwide each year. Medtronic is headquartered in Minneapolis, Minnesota; we serve patients and physicians in 120 countries through more than 38,000 employees; and we are publicly traded on the New york Stock Exchange under...

  • Page 3
    ... 33 15 Diabetes External and implantable insulin pumps, real-time continuous glucose monitoring systems and therapy management software that help diabetes patients improve blood sugar control. E a r, Nose a nd T h roat Cond it ion s 16 Ménière's Disease Portable external device that delivers...

  • Page 4
    20 22 25 23 16 18 17 27 9 19 21 14 2 3 5 30 6 4 1 12 31 10 24 7 26 11 29 32 33 13 28 8 15 Yui Zenke Tokushima, Japan Pacemaker to treat irregular heart rate

  • Page 5
    ..., and certain tax adjustments per diluted share diluted earnings per share excluding special, restructuring, certain litigation and IPR&d charges, and certain tax adjustments dividends per share Return on equity Research and development expense Closing stock price (1) See Notes 2, 3, 4 and 12 to the...

  • Page 6
    ... the diabetes business, our Guardian REAL-Time continuous glucose monitoring system helped us continue the march towards an automated closed-loop insulin delivery system. In Cardiac Rhythm disease Management (CRdM), more than 250,000 patients have been enrolled on our remote CareLink network. 2

  • Page 7
    CEO Bill Hawkins met recently with Barbara O'Deady at the Minnesota Zoo. The California resident now has more energy, thanks to her Endeavor drug-eluting coronary stent from Medtronic. 3

  • Page 8
    ... technology to enable physicians to better manage patients' diseases. We also are enabling patients to become more involved in the management of their healthcare. For example, people with diabetes can monitor their blood sugar levels continuously with our real-time glucose monitoring systems...

  • Page 9
    ... of our total Foundation giving this fiscal year. you can learn more about what Medtronic and the Medtronic Foundation do in communities around the world at www.medtronic.com/community. As the company evolves, so has our board of directors. Victor dzau, M.d., chancellor for Health Affairs at duke...

  • Page 10
    ... implantable programmable pump (baclofen) Heart Disease First implanted cardiac pressure sensor DIAGNOSTICS AND REMOTE MONITORING Consulta Cardiac Resynchronization Therapy-Defibrillator Heart Failure Endeavor Drug-Eluting Stent Coronary Artery Disease MiniMed Paradigm REAL-Time System Diabetes...

  • Page 11
    ... Atrial Fibrillation First implantable tiered therapy defibrillator Parkinson's Disease First deep brain stimulator Overactive Bladder/Urinary Incontinence First implantable neurostimulator Heart Failure First implantable cardiac resynchronization pacemaker Heart Valve Disease First stentless aortic...

  • Page 12
    ...that less than half the eligible heart failure patients are receiving our life-changing Implantable Cardioverter defibrillator (ICd) and CRT-d devices, as indicated by current medical guidelines. To address the issue, we developed a quality improvement process program. It helps physicians-especially...

  • Page 13
    ...observed every minute of the day." A month and a half later, Vijay fainted again. His doctor analyzed the recorded data, discovered he had an abnormally slow heart rate and prescribed a Medtronic pacemaker. Now Vijay is back to his normal routine: doing consulting work in the steel industry, playing...

  • Page 14
    VERTEBR AL COMPRESSION FR ACTURE Entering the Aging Spine Market In fiscal year 2008, we acquired Kyphon, a company with leading minimally invasive therapies for treating At a Glance What it is: A ver tebral compression fracture, sometimes called a spinal fracture, occurs when one of the bones in ...

  • Page 15
    ...in the shoulder or arm. Medtronic treatments: An angioplasty portfolio that includes the Endeavor system, which opens a blocked artery at the same time as implanting a supporting stent. The stent holds the artery open and diffuses a drug that prevents new tissue growth, which could otherwise reblock...

  • Page 16
    ... their own therapy by directing stimulation to the right place up and down the spinal cord, and adjusting the level of intensity to maximize relief. Medtronic also remains the only company to offer a programmable, implantable drug infusion system for pain relief. Our SynchroMed II pump provides...

  • Page 17
    Jackie Phillips San Diego, California Neurostimulator to treat chronic pain Eight years ago, Jackie Phillips broke her ankle while cheerleading. The ankle healed, but chronic pain gradually spread to all four limbs. "I was 14 and living life on the sidelines," Jackie noted. "No cheerleading or ...

  • Page 18
    ...mountain climbing, and it's critical to managing his diabetes effectively. So when Mauro learned about the performance benefits of our insulin pump a few years ago, he quickly asked to have it prescribed. "My life is better with a pump," Mauro said. "Sixteen years of injections was enough. Now I can...

  • Page 19
    ... insulin, but can't use it correctly. Symptoms: Increased thirst, frequent urination, extreme hunger, weight loss, fatigue, blurred vision. Medtronic treatments: Integrated diabetes management systems, including insulin pumps, real-time continuous glucose monitoring systems and therapy management...

  • Page 20
    ... for years. We also offer an adjustable-pressure shunt that makes it easy to manage the condition over time. Using a magnet and hand-held reader, clinicians can non-invasively adjust among five pressure settings during an office visit-without the need for another surgery. This product is quickly...

  • Page 21
    2008 Reports of Management Consolidated Statements of Earnings Consolidated Balance Sheets Selected Financial data Investor Information Corporate Leadership Table of Contents - Financial Section Management's discussion and Analysis of Financial Condition and Results of Operations 18 48 49 50 51 ...

  • Page 22
    ... this business. As a result, the Company now functions in seven operating segments, consisting of Cardiac Rhythm disease Management (CRdM), Spinal, CardioVascular, Neuromodulation, diabetes, Surgical Technologies and Physio-Control. The applicable information for fiscal years 2007 and 2006 has been...

  • Page 23
    ...to address the quality system issues and resumed limited shipments to critical need customers. As a result of the work performed to date, on April 28, 2008, we announced that we had Cardiac Rhythm disease Management Spinal CardioVascular Neuromodulation diabetes Surgical Technologies Physio-Control...

  • Page 24
    ... defibrillator products. The agreement was filed on April 25, 2008 in the U.S. district Court for the Western district of Washington and was approved by the court on May 9, 2008. The agreement addresses issues raised by the FdA during inspections regarding Physio-Control's quality system processes...

  • Page 25
    ... for the fiscal year ended April 25, 2008 of approximately $38 million. See discussion of the tax rate in the "Income Taxes" section of the management's discussion and analysis. Valuation of IPR&d, Goodwill and Other Intangible Assets When we acquire a company, the purchase price is allocated...

  • Page 26
    ... Revascularization and Surgical Therapies Structural Heart disease CARDIOVASCULAR Neuro Implantables Gastroenterology and Urology NEUROMODULATION DIABETES Core ENT Neurologic Technologies Navigation SURGICAL TECHNOLOGIES PHYSIO-CONTROL TOTAL In fiscal years 2008 and 2007, net sales were favorably...

  • Page 27
    ... Fiscal year 2008 defibrillation and Pacing Systems sales also benefited from the continued acceptance of the Medtronic CareLink Service. The Medtronic CareLink Service enables clinicians to review data about implanted cardiac devices in real time and access stored patient and device diagnostics...

  • Page 28
    ...of pacemakers, including the Adapta, Versa and Sensia models. • Continued expansion of the Medtronic CareLink Service, available on both the Pacing and defibrillator platforms in the U.S., Canada and Western Europe, and beginning in the fourth quarter of fiscal year 2008, on a pilot basis in Japan...

  • Page 29
    ... of coronary and peripheral stents and related delivery systems, endovascular stent graft systems, heart valve replacement technologies and tissue ablation systems, and open heart and coronary bypass grafting surgical products. CardioVascular net sales for fiscal year 2008 increased 12 percent from...

  • Page 30
    ... U.S. launch of the market-leading AneuRx AAAdvantage Stent Graft System, which is used to treat abdominal aortic aneurysms (AAA), and increased sales of the Valiant Thoracic Stent Graft System outside the U.S. Revascularization and Surgical Therapies net sales for fiscal year 2007 were $417 million...

  • Page 31
    ...AAA stent graft in the second half of calendar year 2008. Neuromodulation Neuromodulation products consist of therapeutic and diagnostic devices, including implantable neurostimulation systems, implantable drug delivery devices and urology and gastroenterology products. Neuromodulation net sales for...

  • Page 32
    ... fiscal year 2008 were $448 million, representing growth of 15 percent over the prior fiscal year. This increase reflects strong worldwide market acceptance of the Paradigm REAL-Time sensor-augmented pump system that integrates continuous glucose monitoring and insulin pump functionality. The sales...

  • Page 33
    ... monitoring systems, disposable fluid-control products, a Ménière's disease therapy device, hydrocephalus shunt devices, external drainage systems, cranial fixation devices, neuroendoscopes, dura repair products and image-guided surgery systems. Surgical Technologies net sales for fiscal year 2008...

  • Page 34
    ...the worldwide distribution of the Fidelis lead and scrap costs at our Physio-Control business segment. Cost of products sold was $3.168 billion in fiscal year 2007 representing 25.8 percent of net sales, an increase of 0.9 of a percentage point from fiscal year 2006. The increase in cost of products...

  • Page 35
    ... within cost of products sold in the consolidated statement of earnings. The employee termination costs of $27 million consist of severance and the associated costs of continued medical benefits, and outplacement services. Special charges: Asset impairment charges Medtronic Foundation donation...

  • Page 36
    ...certain lawsuits relating to the Marquis line of ICds and CRT-ds. during fiscal year 2007, we recorded a certain litigation charge of $40 million related to a settlement agreement with the U.S. department of Justice which requires the government to obtain dismissal of two qui tam civil suits pending...

  • Page 37
    ...year 2008. In fiscal year 2007, we recorded a $129 million tax benefit associated with the reversal of excess tax accruals in connection with the settlement reached with the U.S. Internal Revenue Service (IRS) with respect to their review of our fiscal years 2003 and 2004 domestic income tax returns...

  • Page 38
    ... in fiscal year 2006 associated with favorable agreements reached with the IRS involving the review of our fiscal years 1997 through 2002 domestic income tax returns. The non-GAAP nominal tax rate decrease of 1.8 percentage points is mainly due to increased benefits from our international operations...

  • Page 39
    ... may, from time to time, seek to take advantage of favorable interest rate environments or other market conditions. At April 25, 2008, our Standard and Poor's Ratings Group and Moody's Investors Service ratings remain unchanged as compared to the fiscal year ended April 27, 2007 with Medtronic, Inc...

  • Page 40
    ... interest payments. For the fiscal year ended April 25, 2008, we recognized a $3 million impairment loss on AFS debt securities. Based on our assessment of the credit quality of the underlying collateral and credit support available to each of the remaining securities in which we are invested, we...

  • Page 41
    ... common stock and a $1.075 billion decrease in cash used in the purchase of call options. product or cease progress of a clinical trial, which would allow us to avoid making the contingent payments. Although we are unlikely to cease development if a device successfully achieves clinical testing...

  • Page 42
    ...further discussion). Shares are repurchased from time to time to support our stock-based compensation programs and to take advantage of favorable market conditions. during fiscal years 2008 and 2007, we repurchased approximately 30.7 million shares and 21.7 million shares at an average price of $50...

  • Page 43
    ... common stock. As of April 25, 2008, pursuant to provisions in the indentures relating to the Company's increase of its quarterly dividend to shareholders, the conversion rates for each of the Senior Convertible Notes is now 17.8715, which correspondingly changed the conversion price per share for...

  • Page 44
    ... (ii) the New debentures require us to pay only cash (in lieu of shares of our common stock or a combination of cash and shares of our common stock) when we repurchase the New debentures at the option of the holder or when we repurchase the New debentures in connection with a change of control. In...

  • Page 45
    ... On April 15, 2008, we recorded an IPR&d charge of $42 million related to the acquisition of NdI Medical (NdI), a development stage company focused on commercially developing technology to stimulate the dorsal genital nerve as a means to treat urinary incontinence. Total consideration for...

  • Page 46
    ... as technology based intangible assets that had an estimated useful life of 11 years at the time of acquisition. The acquired patents or licenses pertain to the cardiac rhythm disease management field and have both current application and potential for future patentable commercial products. On...

  • Page 47
    ... by market share gains with Endeavor and Endeavor Resolute. diabetes sales increased as a result of further acceptance of the paradigm Real Time System. Increased sales of defibrillation Systems and Pacing Systems led the increase within our CRdM business. From fiscal year 2006 to fiscal year 2007...

  • Page 48
    ... interest payments. For the fiscal year ended April 25, 2008, we recognized a $3 million impairment loss on AFS debt securities. Based on our assessment of the credit quality of the underlying collateral and credit support available to each of the remaining securities in which we are invested, we...

  • Page 49
    ... Body assesses the quality management systems of the manufacturer and the product conformity to the essential and other requirements within the Medical device directive. Medtronic is subject to inspection by Notified Bodies for compliance. To be sold in Japan, most medical devices must undergo...

  • Page 50
    ... are often similar state false claims, anti-kickback, anti-self referral and insurance fraud laws that apply to claims submitted under state Medicaid or state-funded or private healthcare benefit programs. In addition, the U.S. Federal Corrupt Practices Act can be used to prosecute companies in the...

  • Page 51
    ...-K, as well as those related to competition in the medical device industry, reduction or interruption in our supply, quality problems, liquidity, decreasing prices, adverse regulatory action, litigation success, self-insurance, healthcare policy changes and international operations. Consequently, no...

  • Page 52
    ...'s responsibility is to express an opinion that such financial statements present fairly, in all material respects, our financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the United States. Management's Report on Internal Control...

  • Page 53
    ...No. 123 (revised 2004), "Share-Based Payment" and of Statement of Financial Accounting Standard No. 158, "Employers' Accounting for defined Benefit Pension and Other Postretirement Plans," respectively. A company's internal control over financial reporting is a process designed to provide reasonable...

  • Page 54
    ...Earnings Fiscal year (in millions, except per share data) 2008 ...sales Costs and expenses: Cost of products sold Research and development expense Selling, general and administrative expense Special charges Restructuring charges Certain litigation charges Purchased in-process research and development...

  • Page 55
    ... 27, 2007 2008 Assets Current assets: Cash and cash equivalents Short-term investments Accounts receivable, less allowances of $99 and $160, respectively Income tax receivable Inventories deferred tax assets, net Prepaid expenses and other current assets Total current assets Property, plant and...

  • Page 56
    ... exchange derivatives Total comprehensive income dividends to shareholders Issuance of common stock under stock purchase and award plans Repurchase of common stock Excess tax benefit from exercise of stock-based awards Purchased call options, net of tax benefit Sale of warrants Balance April 28...

  • Page 57
    ... marketable securities Other investing activities, net Net cash used in investing activities Financing Activities: Change in short-term borrowings, net Payments on long-term debt Issuance of long-term debt Purchase of call options Sale of warrants dividends to shareholders Repurchase of common stock...

  • Page 58
    ... Significant Accounting Policies Nature of Operations Medtronic, Inc. (Medtronic or the Company) is the global leader in medical technology - alleviating pain, restoring health and extending life for millions of people around the world. The Company provides innovative products and therapies for use...

  • Page 59
    ... using a discounted future cash flows analysis. The Company completed its annual goodwill impairment test in the third quarter of fiscal years 2008, 2007 and 2006 and determined that no goodwill was impaired. Intangible Assets Intangible assets include patents, trademarks and purchased technology...

  • Page 60
    ... information regarding the Company's retirement benefit plans. Revenue Recognition The Company sells its products primarily through a direct sales force in the U.S. and a combination of direct sales representatives and independent distributors in international markets. The Company recognizes revenue...

  • Page 61
    ...as a result of the Company's adoption of SFAS No. 158, "Employers' Accounting for defined Benefit Pension and Other Postretirement Plans - an amendment of FASB Statements No. 87, 88, 106 and 132(R)" (SFAS No. 158). The tax benefit related to SFAS No. 158 was $17 and $92 in fiscal years 2008 and 2007...

  • Page 62
    ... pension and other postretirement benefit plans, as well as subsequent changes in the Company's funded status that are not included in net periodic benefit Numerator: Net earnings Denominator: Basic - weighted average shares outstanding Effect of dilutive securities: Employee stock options Shares...

  • Page 63
    ... value option for eligible items that existed as of April 26, 2008. In June 2007, the Emerging Issues Task Force (EITF) reached a consensus on EITF Issue No. 07-3, "Accounting for Nonrefundable Advance Payments for Goods or Services Received to Be Used in Future Research and development Activities...

  • Page 64
    ...-year corporate integrity agreement effective upon dismissal of the two suits that further strengthens its employee training and compliance systems surrounding sales and marketing practices. The settlement agreement also reflects Medtronic's assertion that the Company and its current employees have...

  • Page 65
    ... with costs that are accounted for under the pension and postretirement rules. For further discussion on the incremental defined benefit pension and post-retirement related expense, see Note 13. When the restructuring initiative began in fiscal year 2007, the Company identified approximately...

  • Page 66
    ... note hedges direct acquisition costs Total purchase price $ 3,300 218 570 87 28 $ 4,203 Total $- 36 (13) 23 10 (33) $- There were no restructuring charges in fiscal year 2006. 4. Acquisitions and IPR&D Charges When the Company acquires another company or a group of assets, the purchase price is...

  • Page 67
    ...359 282 33 674 $ 4,203 through cost of products sold during the third quarter of fiscal year 2008, which reflects the estimated period over which the acquired inventory was sold to customers. In connection with the acquisition, the Company began to assess and formulate a plan for the elimination of...

  • Page 68
    ... for the fiscal years 2008 and 2007. Additionally, during fiscal year 2008, the Company recorded IPR&d charges of $25 related to a milestone payment under the existing terms of a royalty bearing, non-exclusive patent cross-licensing agreement with NeuroPace, Inc. and $13 for unrelated purchases of...

  • Page 69
    ...all the outstanding stock of Image-Guided Neurologics, Inc. (IGN), a privately held company. Prior to the acquisition, the Company had an equity investment in IGN, which was accounted for under the cost method of accounting. IGN specialized in precision navigation and delivery technologies for brain...

  • Page 70
    ... per share data) novel spinal technology and techniques that have both current application and the potential for future patentable commercial products. The agreement requires the payment of total consideration of $1,350 for (i) the purchase of a portfolio of more than 100 issued U.S. patents, (ii...

  • Page 71
    ...payments. For the fiscal year ended April 25, 2008, the Company recognized a $3 impairment loss on AFS debt securities. Based on the Company's assessment of the credit quality of the underlying collateral and credit support available to each of the remaining securities in which invested, the Company...

  • Page 72
    ...in millions, except per share data) accounted for using the cost or equity method was $231 and $173, respectively. The total carrying value of these investments is reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company's investment may not be recoverable...

  • Page 73
    ...(i) during any calendar quarter if the closing price of the Company's common stock reaches 140 percent of the conversion price for 20 trading days during a specified period, or (ii) if specified distributions to holders of the Company's common stock are made or specified corporate transactions occur...

  • Page 74
    ... provisions of the warrants relating to the Company's payment of dividends to common shareholders. EITF No. 00-19 provides that contracts are initially classified as equity if (1) the Contract requires physical settlement or net-share settlement, or (2) the Contract gives the Company a choice of net...

  • Page 75
    ... one additional year on december 20, 2008, the second anniversary of the date of this facility. Interest rates on these borrowings are determined by a pricing matrix, based on the Company's long-term debt ratings, assigned by Standard and Poor's Ratings Group and Moody's Investors Service. Facility...

  • Page 76
    ... the subsequent 36-month period. The Company has entered into agreements to sell specific pools of receivables in Italy in the amount of $0, $37 and $53 in fiscal years 2008, 2007 and 2006, respectively. The discount cost related to the receivable sales was insignificant and recorded in interest...

  • Page 77
    ... share repurchase program, for fiscal year 2007 the Company repurchased 21.2 million shares at an average price of $49.06. As of April 25, 2008, the Company has approximately 34.3 million shares remaining under the buyback authorizations. The Company accounts for repurchases of common stock using...

  • Page 78
    ... adopted by the Board of directors on december 13, 2007 and provides for the grant of nonqualified and incentive stock options, restricted stock and stock purchase rights. The directors Plan, a stock compensation plan for outside directors, was adopted in fiscal year 1998 and replaced the provisions...

  • Page 79
    ... shares at an average price of $43.73 per share in the fiscal year ended April 25, 2008. As of April 25, 2008, plan participants have had approximately $6 withheld to purchase Company common stock at 85 percent of its market value on June 27, 2008, the last trading day before the end of the calendar...

  • Page 80
    ...issues new shares when stock option awards are exercised. Cash received from the exercise of stock options for the fiscal year ended April 25, 2008 was $325 and the related tax benefits realized were $40. Unrecognized compensation expense related to outstanding stock options as of April 25, 2008 was...

  • Page 81
    ... liabilities." deferred tax assets generally represent items that can be used as a tax deduction or credit in a tax return in future years for which the Company has already recorded the tax benefit in the consolidated statements of earnings. The Company establishes valuation allowances for deferred...

  • Page 82
    ... the settlement reached with the U.S. Internal Revenue Service (IRS) involving the review of the Company's fiscal year 2003 and fiscal year 2004 domestic income tax returns, and the resolution of competent authority issues for fiscal year 1992 through fiscal year 2000. The $129 certain tax benefit...

  • Page 83
    ... plans (post-retirement benefits), defined contribution savings plans and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. The cost of these plans was $215, $184 and $188 in fiscal years 2008, 2007 and 2006, respectively. The Company uses...

  • Page 84
    ... funded status of the Company's employee retirement plans follow: U.S. Pension Benefits Fiscal year 2008 Accumulated benefit obligation at end of year: Change in projected benefit obligation: Projected benefit obligation at beginning of year Service cost Interest cost Plan amendments Actuarial (gain...

  • Page 85
    ... fiscal year 2008 are as follows: U.S. Pension Benefits Net actuarial gain Prior service cost Amortization of net actuarial gain and prior service costs Effect of exchange rates Changes in unrecognized benefit plan costs $(14) 1 (14) - $(27) Non-U.S. Pension Benefits $ (5) 1 (3) 7 $- Post-Retirement...

  • Page 86
    ...-Retirement Benefits Fiscal year 2007 6.00% N/A 10.00% 6.00% 8.75% N/A 9.00% 2006 6.00% N/A 9.00% 6.00% 8.75% N/A 10.00% The Company's discount rates are determined by considering current yield curves representing high quality, long-term fixed income instruments. The resulting discount rates are...

  • Page 87
    ... 2011 2012 2013 2014-2018 Total Gross Payments $ 24 29 33 37 43 315 $ 481 Non-U.S. Pension Benefits Gross Payments $ 9 10 11 13 14 89 Company performance and starting in fiscal year 2006 the entire match is made in cash. Expense under these plans was $78, $64 and $83 in fiscal years 2008, 2007 and...

  • Page 88
    ... address damages issues has not yet been set. The Company believes an unfavorable outcome in the matter is probable. In accordance with SFAS No. 5, Medtronic has recorded a $243 reserve in the third quarter of fiscal year 2008 for estimated damages in the matter. The range of potential loss related...

  • Page 89
    ... 24, 1997, Abbott Cardiovascular Systems Inc. (ACS), a subsidiary of Abbott Laboratories, sued Medtronic Vascular in U.S. district Court for the Northern district of California alleging that certain models of Medtronic Vascular's bare metal stents infringe the Lau stent patents held by ACS, and...

  • Page 90
    ...") filed suit in U.S. district Court for the district of Massachusetts alleging that Medtronic's subsidiary, Medtronic Sofamor danek USA, Inc. (MSd), was infringing a patent relating to a design for a thoracolumbar multiaxial screw (MAS). dePuy subsequently supplemented its allegations to claim that...

  • Page 91
    .... Medtronic claims that a cervical plate marketed by Biomet under the trade name VueLock Anterior Cervical Plate System, and openly promoted as a plate that has a "Secure One Step Locking" mechanism feature, infringes these patents. The other patents involve instruments and surgical implantation...

  • Page 92
    ... and use of the Fidelis defibrillator leads to artificially inflate Medtronic's stock price. In addition, parallel shareholder derivative actions alleging breach of fiduciary duty, waste of corporate assets and other claims arising out of the same subject matter have been filed in Minnesota state...

  • Page 93
    ... processes, customers, distribution and marketing strategies, regulatory environments and shared infrastructures. Net sales by operating segment are as follows: Fiscal year 2008 Cardiac Rhythm disease Management Spinal CardioVascular Neuromodulation diabetes Surgical Technologies Physio-Control...

  • Page 94
    ...2008 2007 2006 2005 2004(2) Operating Results for the Fiscal Year: Net sales Cost of products sold Gross margin percentage Research and development expense Selling, general and administrative expense Special charges Restructuring charges Certain litigation charges Purchased in-process research...

  • Page 95
    ..., 2008, beginning at 10:30 a.m. (Central daylight Time) at Medtronic's world headquarters, 710 Medtronic Parkway, Minneapolis (Fridley), Minnesota. The Notice of Annual Meeting and Proxy Statement are delivered to shareholders with the annual report. Direct Stock Purchase Plan Medtronic's transfer...

  • Page 96
    ..., Diabetes Robert C. Pozen Chairman, MFS Investment Management Director since 2004 Stephen N. Oesterle, M.d. Senior Vice President, Medicine and Technology Medtronic Corporate Leadership Arthur d. Collins Jr. Chairman of the Board Jean-Pierre Rosso Chairman, World Economic Forum USA Director...

  • Page 97
    Our Mission MISSION • To contribute to human welfare by application of biomedical engineering in the research, design, manufacture, and sale of instruments or appliances that alleviate pain, restore health, and extend life. • To direct our growth in the areas of biomedical ...

  • Page 98
    ..., Tokyo Japan Tel: 81.3.6430.7300 Fax: 81.3.6430.7010 The Medtronic 2008 Annual Report is printed on paper made with fiber sourced from well-managed forests, other controlled wood sources and recycled wood fiber. The paper is independently certified to meet FSC standards by SmartWood, a program of...