Medtronic 2013 Annual Report Download - page 15

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75732me_10K_i_ii.indd 9 7/1/13 4:27 PM
Reconciliation of Non-GAAP Financial Measures
e Shareholder Letter set forth in this Annual Report includes nancial measures that are not prepared in accordance with
U.S. generally accepted accounting principles (U.S. GAAP). Management believes that such non-GAAP nancial measures provide
useful information to investors regarding the underlying business trends and performance of the Company’s ongoing operations.
Investors should consider non-GAAP measures set forth in the Shareholder Letter to be in addition to, and not as a substitute for,
nancial performance measures prepared in accordance with U.S. GAAP. In addition, such non-GAAP nancial measures may not
be the same as, or similar to, measures presented by other companies.
RECONCILIATION OF REVENUE GROWTH TO CONSTANT CURRENCY GROWTH
(Unaudited) (In millions)
Fiscal year ended Currency Impact Constant
April 26, April 27, Reported on Growth Currency
2013 2012 Growth Dollar Percentage Growth
Total consolidated Medtronic, Inc. revenue $ 16,590 $ 16,184 3% $ (328) (2)% 5%
International (non-U.S.) market revenue $ 7,531 $ 7,356 2% $ (328) (5)% 7%
Emerging market revenue(1) $ 1,897 $ 1,666 14% $ (46) (3)% 17%
(1) Emerging market revenue includes revenues from Asia Pacic (except Australia, Japan, Korea, and New Zealand), Central and Eastern Europe, Greater China, Latin America, the
Middle East and Africa, and South Asia.
RECONCILIATION OF OPERATING CASH FLOW TO FREE CASH FLOW
(Unaudited) (In millions)
Fiscal year ended
April 26, 2013
Net cash provided by operating activities $ 4,883
Additions to property, plant, and equipment (457)
Free cash ow $ 4,426
RECONCILIATION OF CONSOLIDATED GAAP DILUTED EPS
TO CONSOLIDATED NONGAAP DILUTED EPS2
(Unaudited)
Fiscal year ended Fiscal year ended
April 26, April 27, Reported April 29, April 30, April 24,
2013 2012 Growth 2011 2010 2009
Diluted EPS, as reported $ 3.37 $ 3.41 -1% $ 2.86 $ 2.79 $ 1.84
Restructuring charges, net(a) 0.14 0.06 0.18 0.04 0.07
Certain litigation charges, net(b) 0.23 0.05 0.22 0.28 0.43
Certain acquisition-related items(c) (0.05) 0.04 (0.01) 0.02 0.55
Physio-Control divestiture-related items(d) – (0.16) – – –
Impact of authoritative convertible debt
guidance on interest expense, net(e) 0.06 0.05 0.10 0.09 0.09
Executive separation costs(f) – – 0.01 – –
Special charges(g) – – – – 0.06
Certain tax adjustments(h) – – – – (0.12)
(3) (3)
Non-GAAP diluted EPS $ 3.75 $ 3.46 8% $ 3.37 $ 3.22 $ 2.92
(2) Reconciliation is presented net of tax.
(3) e data in this schedule has been intentionally rounded to the nearest $0.01 and therefore does not sum.
(a) To exclude restructuring charges related to the restructuring initiatives in each respective scal year, including charges recorded in cost of products sold related to inventory write-os of
discontinued product lines and production-related asset impairments.
(b) To exclude charges classied as certain litigation charges, net on the consolidated statements of earnings.
(c) To exclude charges classied as certain acquisition-related items on the consolidated statements of earnings. e scal year 2012 charge excludes the impact of transaction costs related to
the acquisition of Salient Surgical Technologies, Inc. (Salient) and PEAK Surgical, Inc. (PEAK) and a non-cash gain related to previously held investments in Salient and PEAK.
(d) To exclude the gain recognized on the sale of Physio-Control, partially oset by related transaction costs.
(e) To exclude the incremental non-cash interest expense resulting from a change in the authoritative guidance for convertible debt accounting eective January 1, 2009.
(f) To exclude costs associated with the transition and retirement of Chief Executive Ocer, William Hawkins.
(g) To exclude the impact of a charitable donation made to the Medtronic Foundation.
(h) To exclude tax benet associated with settlements reached in scal year 2009 with the U.S. Internal Revenue Service, numerous state taxing authorities, and assessments received from
various foreign tax authorities.
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