Medtronic 2012 Annual Report Download - page 137

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Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
120
19. Segment and Geographic Information
On January 30, 2012 the Company completed its sale of Physio-Control. 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 for all periods presented, and therefore, are no longer presented in the Cardiac
and Vascular Group operating segment for all periods presented. See Note 3 for further information
regarding discontinued operations.
The Company’s management evaluates performance and allocates resources based on profit and loss
from operations before income taxes and interest expense, net, not including restructuring charges, net,
certain litigation charges, net, and acquisition-related items. The accounting policies of the reportable
segments are the same as those described in the summary of significant accounting policies in Note 1.
Net sales of the Company’s reportable segments include end-customer revenues from the sale of
products they each develop and manufacture or distribute. Net sales and earnings before income taxes by
reportable segment are as follows:
Fiscal Year
____________________________________________
(in millions) 2012 2011 2010
____________ ____________ ____________ ____________
Cardiac and Vascular Group . . . . . . . . . . . . . . . . . . . . . . . $ 8,482 $ 8,119 $ 8,132
Restorative Therapies Group . . . . . . . . . . . . . . . . . . . . . . 7,702 7,389 7,260
____________ ____________ ____________
Total Net Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,184 $ 15,508 $ 15,392
____________ ____________ ____________
____________ ____________ ____________
Fiscal Year
____________________________________________
(in millions) 2012 2011 2010
____________ ____________ ____________ ____________
Cardiac and Vascular Group . . . . . . . . . . . . . . . . . . . . . . . $ 2,772 $ 2,826 $ 2,910
Restorative Therapies Group . . . . . . . . . . . . . . . . . . . . . . 2,103 2,085 2,024
____________ ____________ ____________
Total Reportable Segments’ Earnings
Before Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 4,875 4,911 4,934
Restructuring charges, net . . . . . . . . . . . . . . . . . . . . . . . . . (87) (259) (50)
Certain litigation charges, net . . . . . . . . . . . . . . . . . . . . . . (90) (245) (374)
Acquisition-related items . . . . . . . . . . . . . . . . . . . . . . . . . . (12) (14) (23)
Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (149) (278) (246)
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (392) (451) (297)
____________ ____________ ____________
Total Earnings From Continuing Operations
Before Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,145 $ 3,664 $ 3,944
____________ ____________ ____________
____________ ____________ ____________
The following table presents the Company’s net assets by reportable segment. Total net assets of
continuing operations exclude net assets held for sale of $0 and $170 million, respectively, as of April 27,
2012 and April 29, 2011.
April 27, April 29,
(in millions) 2012 2011
___________ ____________ ____________
Cardiac and Vascular Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,004 $ 6,681
Restorative Therapies Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,313 10,550
____________ ____________
Total Net Assets of Reportable Segments . . . . . . . . . . . . . . . . . . . . . . . . 18,317 17,231
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,274) (1,723)
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,359) (8,112)
Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,429 8,402
____________ ____________
Total Net Assets of Continuing Operations . . . . . . . . . . . . . . . . . . . . . . . . . $ 17,113 $ 15,798
____________ ____________
____________ ____________