Medtronic 2016 Annual Report Download - page 129

Table of Contents
Medtronic plc
Notes to Consolidated Financial Statements (Continued)
126
The following table presents the Company’s assets by reportable segment:
(in millions) April 29, 2016 April 24, 2015
Cardiac and Vascular Group $ 13,563 $ 13,642
Minimally Invasive Therapies Group 52,227 51,228
Restorative Therapies Group 14,564 15,249
Diabetes Group 2,592 2,597
Total Assets of Reportable Segments 82,946 82,716
Corporate 16,836 23,969
Total Assets $ 99,782 $ 106,685
Geographic Information
The following table presents net sales to external customers and property, plant, and equipment, net by geographic region:
(in millions) Americas (1) EMEA (2) Asia Pacific Greater China Consolidated
Fiscal Year 2016
Net sales to external customers $ 17,578 $ 6,700 $ 3,060 $ 1,495 $ 28,833
Property, plant, and equipment, net $ 3,728 $ 708 $ 220 $ 185 $ 4,841
Fiscal Year 2015
Net sales to external customers $ 12,125 $ 5,064 $ 2,059 $ 1,013 $ 20,261
Property, plant, and equipment, net $ 3,626 $ 725 $ 165 $ 183 $ 4,699
Fiscal Year 2014
Net sales to external customers $ 9,922 $ 4,483 $ 1,776 $ 824 $ 17,005
Property, plant, and equipment, net $ 1,833 $ 393 $ 74 $ 92 $ 2,392
(1) The U.S., which is included in the Americas, had net sales to external customers of $16.4 billion, $11.3 billion, and $9.2 billion in fiscal
years 2016, 2015, and 2014, respectively. Property, plant, and equipment, net includes $3.3 billion, $3.0 billion, and $1.7 billion in the U.S.
in fiscal years 2016, 2015, and 2014 respectively.
(2) EMEA consists of the following regions: Europe, Middle East, and Africa. Sales to Ireland were insignificant during all periods presented.
Property, plant, and equipment, net includes $169 million, $151 million, and $72 million in Ireland in fiscal years 2016, 2015, and 2014,
respectively.
No single customer represented over 10 percent of the Company’s consolidated net sales in fiscal years 2016, 2015, or 2014.
18. Subsequent Events
Tyco International, as audit managing party under the Tax Sharing Agreement, entered into Stipulations of Settled Issues with the
IRS intended to resolve all Federal tax disputes related to the previously disclosed intercompany debt issues for the Tax Sharing
Participants for the 1997-2000 audit cycle before the U.S. Tax Court. The Stipulations of Settled Issues were contingent upon the
IRS Appeals Division applying the same settlement terms to all intercompany debt issues on appeal for subsequent audit cycles
(2001-2007). On May 17, 2016 the IRS Office of Appeals issued fully executed Forms 870-AD that effectively settled the matters
on appeal on the same terms as those set forth in the Stipulations of Settled Issues, and on May 31, 2016 the U.S. Tax Court entered
decisions consistent with the Stipulations of Settled Issues. As a result, all aspects of this controversy that were before the U.S.
Tax Court and Appeals Division of the IRS have been finally resolved for audit cycles from 1997-2007. The Company estimates
the adjustments to the income tax reserve and guarantee contingencies will result in the recognition of a benefit of approximately
$425 million in the Company’s first quarter of fiscal 2017 results.
On May 18, 2016, the Company signed a definitive agreement to acquire Smith & Nephew's gynecology business for approximately
$350 million. The addition of Smith & Nephew's gynecology business will expand and strengthen Medtronic's minimally invasive
surgical offerings and will further complement its existing global gynecology business. The acquisition is expected to close in
fiscal year 2017.