Medtronic 2014 Annual Report Download - page 43

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Understanding Our Financial Information
The following discussion and analysis provides information management believes to be relevant to understanding the financial
condition and results of operations of Medtronic, Inc. and its subsidiaries (Medtronic or the Company, or we, us, or our). You
should read this discussion and analysis along with our consolidated financial statements and related notes thereto as of April 25,
2014 and April 26, 2013 and for each of the three fiscal years ended April 25, 2014, April 26, 2013, and April 27, 2012.
Beginning in the third quarter of fiscal year 2012, the results of operations, assets, and liabilities of the Physio-Control business,
which were previously presented as a component of the Cardiac and Vascular Group operating segment, are classified as
discontinued operations. All information in the following management’s discussion and analysis of financial condition and
results of operations includes only results from continuing operations (excluding Physio-Control) for all periods presented,
unless otherwise noted. For further information regarding discontinued operations, see Note 17 to the consolidated financial
statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.
Organization of Financial Information Management’s discussion and analysis, presented on pages 35 to 61 of this report,
provides material historical and prospective disclosures designed to enable investors and other users to assess our financial
condition and results of operations.
Statements that are forward-looking and not historical in nature are subject to risks and uncertainties. See “Item 1A.
Risk Factors” in this Annual Report on Form 10-K and “Cautionary Factors That May Affect Future Results” in this
management’s discussion and analysis for more information.
The consolidated financial statements are presented on pages 63 to 129 of this report, and include the consolidated statements of
earnings, consolidated statements of comprehensive income, consolidated balance sheets, consolidated statements of
shareholders’ equity, consolidated statements of cash flows, and the related notes, which are an integral part of the consolidated
financial statements.
Financial Trends Throughout this management’s discussion and analysis, you will read about transactions or events that
materially contribute to or reduce earnings and materially affect financial trends. We refer to these transactions and events as
special charges (such as contributions to the Medtronic Foundation), restructuring charges, net, certain litigation charges, net,
acquisition-related items (such as asset impairments), or certain tax adjustments. These charges, or benefits, result from facts
and circumstances that vary in frequency and/or impact to operations. While understanding these charges or benefits is
important to understanding and evaluating financial trends, other transactions or events may also have a material impact on
financial trends. A complete understanding of the special charges, restructuring charges, net, certain litigation charges, net,
acquisition-related items, and certain tax adjustments is necessary in order to estimate the likelihood that they may affect
financial trends in the future.
Our fiscal year-end is the last Friday in April, and therefore, the total weeks in a fiscal year can fluctuate between 52 and
53 weeks. Fiscal years 2014, 2013, and 2012 were 52-week years. Fiscal year 2016 will be the next 53-week year.
Executive Level Overview
Medtronic is the global leader in medical technology - alleviating pain, restoring health, and extending life for millions of
people around the world. We develop, manufacture, and market our medical devices in more than 140 countries. Our primary
products include those for cardiac rhythm disorders, cardiovascular disease, neurological disorders, spinal conditions and
musculoskeletal trauma, urological and digestive disorders, and ear, nose, and throat and diabetes conditions.
In the first quarter of fiscal year 2014, we amended the way in which we evaluate performance and allocate resources for the
Diabetes business including separating the Diabetes business from the Restorative Therapies Group. As a result, we began to
operate under three reportable segments and three operating segments, the Cardiac and Vascular Group (composed of the
CRDM, Coronary, Structural Heart, and Endovascular businesses), the Restorative Therapies Group (composed of the Spine,
Neuromodulation, and Surgical Technologies businesses), and the Diabetes Group. See Note 20 to the consolidated financial
statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K for additional
discussion related to our segment reporting.
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