Medtronic 2010 Annual Report Download - page 105

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101
and Physio-Control. As of April 30, 2010, in accordance with
authoritative guidance, these operating segments are aggregated
into one reportable segment.
Each of the Company’s operating segments has similar economic
characteristics, technology, manufacturing processes, customers,
distribution and marketing strategies, regulatory environments
and shared infrastructures. Net sales by operating segment are
as follows:
Fiscal Year
(in millions) 2010 2009 2008
Cardiac Rhythm Disease Management $ 5,268 $ 5,014 $ 4,963
Spinal 3,500 3,400 2,982
CardioVascular 2,864 2,437 2,131
Neuromodulation 1,560 1,434 1,311
Diabetes 1,237 1,114 1,019
Surgical Technologies 963 857 780
Physio-Control 425 343 329
Total Net Sales $ 15,817 $ 14,599 $ 13,515
In December 2006, the Company announced its intention to
pursue a spin-off of Physio-Control into an independent, publicly
traded company. However, the Company announced, in January
2007, a voluntary suspension of U.S. shipments of Physio-Control
products manufactured at its facility in Redmond, Washington in
order to address quality system issues. As of February 19, 2010,
after receiving notice from the FDA that, having successfully
met requirements for improvements to the quality system, the
Company resumed unrestricted global shipments of Physio-
Control products. As a result, the Company’s immediate focus will
be to ramp up its manufacturing capabilities to meet customer
back orders and future product needs. The Company’s plans to
pursue a spin-off of Physio-Control will be re-evaluated thereafter.
As additional information, Physio-Control’s income/(loss) before
interest and income taxes for fiscal years 2010, 2009 and 2008 was
$24 million, $(17) million and $(28) million, respectively. Physio-
Control’s long-lived assets for fiscal years 2010, 2009 and 2008
were $53 million, $51 million and $63 million, respectively.
Medtronic, Inc.
Geographic Information
Net sales to external customers by geography are as follows:
(in millions) United States Europe Asia Pacific Other Foreign Consolidated
Fiscal Year 2010
Net sales to external customers $9,366 $ 4,014 $1,903 $534 $15,817
Long-lived assets* $7,573 $ 5,431 $ 253 $362 $13,619
Fiscal Year 2009
Net sales to external customers $ 8,987 $ 3,564 $ 1,558 $ 490 $ 14,599
Long-lived assets* $ 7,236 $ 5,660 $ 185 $ 286 $ 13,367
Fiscal Year 2008
Net sales to external customers $ 8,336 $ 3,288 $ 1,437 $ 454 $ 13,515
Long-lived assets* $ 7,456 $ 4,791 $ 168 $ 36 $12,451
*Excludes other long-term financial instruments and long-term deferred tax assets, net, as applicable.
No single customer represents over 10 percent of the Company’s consolidated net sales in fiscal years 2010, 2009 or 2008.