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Table of Contents
52
The following is a summary of other costs and expenses:
Fiscal Year
(in millions) 2016 2015 2014
Special charges (gains), net $ 70 $ (38) $ 40
Restructuring charges, net 290 237 78
Certain litigation charges, net 26 42 770
Acquisition-related items 283 550 117
Amortization of intangible assets 1,931 733 349
Other expense, net 107 118 181
Interest expense, net 955 280 108
Special Charges (Gains), Net During fiscal year 2016, we recognized special charges of $70 million in connection with the
impairment of a debt investment.
During fiscal year 2015, we recognized special gains of $138 million, which consisted of a $41 million gain on the sale of a product
line in the Surgical Technologies division, and a $97 million gain on the sale of an equity method investment.
During fiscal year 2015 and 2014, consistent with our commitment to improving the health of people and communities throughout
the world, we made charitable contributions of $100 million and $40 million, respectively, to the Medtronic Foundation, which
is a related party non-profit organization.
Special charges (gains), net will affect the comparability of our operating results between periods, and we consider this a Non-
GAAP Adjustment, refer to the "Executive Level Overview" section of this Management's Discussion and Analysis for further
analysis related to these charges.
Restructuring Charges, Net We incur restructuring charges in connection with our cost-reduction and productivity initiatives
or with acquisitions when we implement plans to restructure and integrate the acquired operations. Amounts recognized as
restructuring charges result from a series of judgments and estimates about future events and uncertainties and rely heavily on
assumptions upon implementation of the initiative programs. Restructuring programs will affect the comparability of our operating
results between periods, and we consider this a Non-GAAP Adjustment. Refer to the "Executive Level Overview" section of this
Management's Discussion and Analysis.
We began our restructuring program related to the acquisition of Covidien, the cost synergies initiative, in the fourth quarter of
fiscal year 2015. We anticipate approximately $850 million in cost synergies to be achieved as a result of the Covidien acquisition
through fiscal year 2018, including administrative office optimization, manufacturing and supply chain infrastructure, and certain
general and administrative savings. Restructuring charges are expected to be incurred in future fiscal years as cost synergy initiatives
are finalized. Restructuring charges are expected to be primarily related to employee termination costs and costs related to
manufacturing and facility closures.
Currently, we have several initiative programs in various states of progress with total restructuring liabilities of $257 million and
$233 million at April 29, 2016 and April 24, 2015, respectively. During fiscal year 2016, we incurred $332 million in restructuring
charges, $9 million of which was related to inventory write-offs of discontinued product lines recognized within cost of products
sold in the consolidated statements of income. These charges were partially offset by a $33 million reversal of excess restructuring
reserves.
For additional information, see Note 3 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary
Data” in this Annual Report on Form 10-K.
Certain Litigation Charges, Net We classify material litigation charges and gains recognized as certain litigation charges, net.
Certain litigation charges, net will affect the comparability of our operating results between periods, and we consider this a Non-
GAAP Adjustment, refer to the "Executive Level Overview" section of this Management's Discussion and Analysis. During fiscal
years 2016 and 2015, we recorded certain litigation charges, net of $26 million and $42 million, respectively, which primarily
relate to additional accounting charges for probable and reasonably estimable INFUSE product liability litigation, which were
recorded as a result of additional filed and unfiled claims, and other litigation matters. See Note 15 to the consolidated financial
statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K for additional
information.