Medtronic 2015 Annual Report Download - page 54

The table below illustrates net sales by operating segment and division for fiscal years 2015, 2014, and 2013:
Net Sales Net Sales
Fiscal Year Fiscal Year
(dollars in millions; NM — Not Meaningful) 2015 2014 % Change 2014 2013 % Change
Cardiac Rhythm & Heart Failure $ 5,245 $ 4,996 5% $ 4,996 $ 4,922 2%
Coronary & Structural Heart 3,038 2,956 3 2,956 2,906 2
Aortic & Peripheral Vascular 1,078 895 20 895 867 3
TOTAL CARDIAC AND VASCULAR
GROUP 9,361 8,847 6 8,847 8,695 2
Surgical Solutions 1,293 — NM — — —
Patient Monitoring & Recovery 1,094 — NM — — —
TOTAL MINIMALLY INVASIVE
THERAPIES GROUP 2,387 — NM — — —
Spine 2,971 3,041 (2) 3,041 3,131 (3)
Neuromodulation 1,977 1,898 4 1,898 1,812 5
Surgical Technologies 1,671 1,562 7 1,562 1,426 10
Neurovascular 132 — NM — — —
TOTAL RESTORATIVE THERAPIES
GROUP 6,751 6,501 4 6,501 6,369 2
DIABETES GROUP 1,762 1,657 6 1,657 1,526 9
TOTAL $ 20,261 $ 17,005 19% $ 17,005 $ 16,590 3%
The increase in net sales for fiscal year 2015 was primarily attributable to the Covidien acquisition. In fiscal years 2015 and
2014, net sales were unfavorably impacted by foreign currency translation of $666 million and $175 million, respectively. The
primary exchange rate movements that impacted our consolidated net sales growth were the U.S. dollar as compared to the Euro
and the Japanese Yen. The impact of foreign currency fluctuations on net sales was not indicative of the impact on net income
due to the offsetting foreign currency impact on operating costs and expenses and our hedging activities. See “Item 7A.
Qualitative and Quantitative Disclosures about Market Risk” and Note 9 to the consolidated financial statements in “Item 8.
Financial Statements and Supplementary Data” in this Annual Report on Form 10-K for further details on foreign currency
instruments and our related risk management strategies.
Cardiac and Vascular Group The Cardiac and Vascular Group is composed of the Cardiac Rhythm & Heart Failure,
Coronary & Structural Heart, and Aortic & Peripheral Vascular divisions. The Cardiac and Vascular Group’s products, with
specific focus on comprehensive disease management, include pacemakers, insertable and external cardiac monitors,
implantable defibrillators, leads and delivery systems, ablation products, electrophysiology catheters, products for the treatment
of atrial fibrillation, information systems for the management of patients with Cardiac Rhythm & Heart Failure devices,
products designed to reduce surgical site infections, coronary and peripheral stents and related delivery systems, endovascular
stent graft systems, heart valve replacement technologies, cardiac tissue ablation systems, and open heart and coronary bypass
grafting surgical products. The Cardiac and Vascular Group also includes Cardiocom and Cath Lab Managed Services (CLMS).
The Cardiac and Vascular Group’s net sales for fiscal year 2015 were $9.361 billion, an increase of 6 percent compared to the
prior fiscal year. Foreign currency translation had an unfavorable impact on net sales of $296 million compared to the prior
fiscal year. The Cardiac and Vascular Group’s performance was primarily a result of strong net sales in Cardiac Rhythm &
Heart Failure and Aortic & Peripheral Vascular and solid growth in Coronary & Structural Heart. See the more detailed
discussion of each business’s performance below.
Cardiac Rhythm & Heart Failure net sales for fiscal year 2015 were $5.245 billion, an increase of 5 percent compared to the
prior fiscal year. The increase in Cardiac Rhythm & Heart Failure net sales was driven by the ongoing acceptance of the Reveal
LINQ insertable cardiac monitor and the launches of the Viva XT CRT-D with Attain Performa quadripolar CRT-D lead system
in the U.S. in September 2014 and Evera MRI SureScan ICD in Japan in November 2014. Net sales of the Cardiac Rhythm &
Heart failure division were also driven by the continued global acceptance of the Arctic Front Advance Cardiac CryoAblation
Catheter (Arctic Front) system, net sales from Cardiocom and our CLMS business, which includes the August 2014 acquisition
of NGC. Net sales were negatively impacted by unfavorable foreign currency translation.
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