Medtronic 2011 Annual Report Download - page 22

18Medtronic, Inc.
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.
(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 29, 2011 and
April 30, 2010 and for each of the three fiscal years ended April 29,
2011, April 30, 2010, and April 24, 2009.
Organization of Financial Information Management’s discussion
and analysis, presented on pages 18 to 44 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.
The consolidated financial statements are presented on pages
47 to 97 of this report, and include the consolidated statements of
earnings, 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 asset impairments or contributions to The
Medtronic Foundation), restructuring charges, certain litigation
charges, net, acquisition-related items, 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, certain litigation charges, net, acquisition-related items,
and certain tax adjustments is necessary in order to estimate the
likelihood that financial trends may continue.
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 2011 and 2009 were 52-week years. Fiscal year
2010 was a 53-week year. As a result, fiscal year 2011 results
included one less week than the same period in the prior year,
resulting in an unfavorable impact on our fiscal year 2011 net
sales growth.
Executive Level Overview
We are 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 120 countries. Our primary products include
those for cardiac rhythm disorders, cardiovascular disease,
neurological disorders, spinal conditions and musculoskeletal
trauma, urological and digestive disorders, diabetes, and ear,
nose, and throat conditions.
In the third quarter of fiscal year 2010, we consolidated our
businesses into two operating groups. This structure further
advances our goal to capitalize on existing synergies related to
customers and technologies across each business. The creation of
these two operating groups did not change how we internally
managed and reported the results of these businesses in fiscal
year 2010. Starting in the first quarter of fiscal year 2011, due to
changes in how we internally manage and report the results
of these businesses, we began to operate under two reportable
segments and two operating segments, the Cardiac and Vascular
Group (composed of the Cardiac Rhythm Disease Management
(CRDM), CardioVascular, and Physio-Control businesses) and
the Restorative Therapies Group (composed of the Spinal,
Neuromodulation, Diabetes, and Surgical Technologies businesses).