Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Medtronic PLC, income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
U.S.	1,303)	467)	287)	151)	579)	2,899)
International	530)	599)	439)	375)	406)	796)
Current tax expense	1,833)	1,066)	726)	526)	985)	3,695)
U.S.	(336)	(402)	(626)	(138)	(310)	45)
International	83)	(209)	165)	(1,139)	(128)	(1,160)
Deferred tax expense (benefit)	(253)	(611)	(461)	(1,277)	(438)	(1,115)
Income tax provision (benefit)	1,580)	455)	265)	(751)	547)	2,580)

Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

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Item	Description	The company
Current tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Medtronic PLC current tax expense increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax expense (benefit)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Medtronic PLC deferred tax expense (benefit) decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Income tax provision (benefit)	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Medtronic PLC income tax provision (benefit) increased from 2021 to 2022 and from 2022 to 2023.

Medtronic PLC, effective income tax rate (EITR) reconciliation

	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
U.S. federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	30.50%
U.S. state taxes, net of federal tax benefit	0.10%	0.20%	-1.10%	0.50%	0.90%	0.80%
Research and development credit	-1.90%	-1.30%	-2.30%	-2.10%	-1.20%	-0.80%
Puerto Rico excise tax	-1.00%	-1.10%	-2.00%	-1.50%	-1.60%	-1.10%
International	-8.20%	-11.20%	-12.60%	-10.00%	-10.70%	-18.90%
Stock based compensation	0.20%	-0.80%	-0.80%	-1.50%	-1.00%	-1.00%
Interest on uncertain tax positions	0.70%	0.50%	0.90%	1.30%	0.90%	1.40%
Base erosion anti-abuse tax	0.00%	0.90%	0.50%	2.60%	0.10%	0.00%
Foreign derived intangible income benefit	-1.20%	-1.00%	-1.90%	-1.20%	-0.60%	0.00%
Divestiture-related	0.00%	0.00%	0.00%	0.00%	-0.40%	-3.80%
Certain tax adjustments	17.00%	-0.90%	-1.00%	-30.80%	-0.60%	-8.90%
Legal entity restructuring	0.00%	0.00%	1.80%	0.00%	0.00%	0.00%
U.S. tax on foreign earnings	2.50%	2.20%	3.40%	2.80%	4.00%	2.70%
Other, net	0.30%	-0.20%	0.90%	0.40%	-0.50%	1.60%
Increase (decrease) in tax rate	8.50%	-12.70%	-14.20%	-39.50%	-10.70%	-28.00%
Effective tax rate, before U.S. Tax Reform	29.50%	8.30%	6.80%	-18.50%	10.30%	2.50%
U.S. Tax Reform	0.00%	0.00%	0.00%	0.00%	0.20%	43.00%
Effective tax rate	29.50%	8.30%	6.80%	-18.50%	10.50%	45.50%

Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

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Item	Description	The company
Effective tax rate, before U.S. Tax Reform	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Medtronic PLC effective tax rate, before U.S. Tax Reform increased from 2021 to 2022 and from 2022 to 2023.

Medtronic PLC, components of deferred tax assets and liabilities

US$ in millions

	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
Intangible assets	2,259)	2,334)	—)	—)	—)	—)
Net operating loss, capital loss, and credit carryforwards	10,803)	5,982)	6,114)	6,432)	6,574)	7,463)
Capitalization of research and development	971)	597)	408)	—)	—)	—)
Other accrued liabilities	458)	483)	442)	390)	389)	410)
Accrued compensation	312)	332)	411)	285)	315)	209)
Pension and post-retirement benefits	66)	66)	234)	350)	300)	256)
Stock-based compensation	141)	146)	132)	136)	162)	190)
Inventory	135)	146)	164)	191)	194)	207)
Lease obligations	150)	92)	106)	101)	—)	—)
Federal and state benefit on uncertain tax positions	79)	60)	55)	96)	83)	67)
Interest limitation	377)	386)	352)	236)	111)	—)
Unrealized loss on available-for-sale securities and derivative financial instruments	39)	—)	—)	—)	17)	93)
Other	277)	374)	336)	338)	339)	332)
Gross deferred tax assets	16,067)	10,998)	8,754)	8,555)	8,484)	9,227)
Valuation allowance	(11,311)	(6,583)	(5,822)	(5,482)	(6,300)	(7,166)
Deferred tax assets	4,756)	4,415)	2,932)	3,073)	2,184)	2,061)
Intangible assets	(1,551)	(1,488)	(320)	(1,017)	(1,614)	(1,697)
Realized loss on derivative financial instruments	(70)	(66)	(75)	(65)	(70)	(69)
Right of use leases	(147)	(89)	(102)	(97)	—)	—)
Unrealized gain on available-for-sale securities and derivative financial instruments	—)	—)	(16)	(12)	—)	—)
Accumulated depreciation	(109)	(121)	(151)	(87)	(38)	(38)
Outside basis difference of subsidiaries	(119)	(129)	(101)	(77)	(119)	(131)
Other	(80)	(70)	(81)	(110)	(152)	(143)
Deferred tax liabilities	(2,076)	(1,963)	(846)	(1,465)	(1,993)	(2,078)
Net deferred tax assets (liabilities)	2,680)	2,452)	2,086)	1,608)	191)	(17)
Prepaid income taxes	480)	474)	458)	449)	363)	406)
Income tax receivables	494)	358)	353)	381)	335)	315)
Tax assets (liabilities), net	3,654)	3,284)	2,897)	2,438)	889)	704)

Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Medtronic PLC gross deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Medtronic PLC deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Medtronic PLC net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Medtronic PLC, deferred tax assets and liabilities, classification

US$ in millions

	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
Other current assets	885)	765)	756)	780)	648)	662)
Tax assets	3,477)	3,403)	3,169)	2,832)	1,519)	1,465)
Less: Prepaid income taxes	(480)	(474)	(458)	(449)	(363)	(406)
Less: Income tax receivables	(494)	(358)	(353)	(381)	(335)	(315)
Deferred tax assets	3,388)	3,336)	3,114)	2,782)	1,469)	1,406)
Deferred tax liabilities	708)	884)	1,028)	1,174)	1,278)	1,423)

Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Medtronic PLC deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Medtronic PLC deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Medtronic PLC, adjustments to financial statements

US$ in millions

	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
Adjustment to Total Assets
Total assets (as reported)	90,948)	90,981)	93,083)	90,689)	89,694)	91,393)
Less: Noncurrent deferred tax assets, net	3,388)	3,336)	3,114)	2,782)	1,469)	1,406)
Total assets (adjusted)	87,560)	87,645)	89,969)	87,907)	88,225)	89,987)
Adjustment to Total Liabilities
Total liabilities (as reported)	39,283)	38,260)	41,481)	39,817)	39,482)	40,571)
Less: Noncurrent deferred tax liabilities, net	708)	884)	1,028)	1,174)	1,278)	1,423)
Total liabilities (adjusted)	38,575)	37,376)	40,453)	38,643)	38,204)	39,148)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	51,483)	52,551)	51,428)	50,737)	50,091)	50,720)
Less: Net deferred tax assets (liabilities)	2,680)	2,452)	2,086)	1,608)	191)	(17)
Shareholders’ equity (adjusted)	48,803)	50,099)	49,342)	49,129)	49,900)	50,737)
Adjustment to Net Income Attributable To Medtronic
Net income attributable to Medtronic (as reported)	3,758)	5,039)	3,606)	4,789)	4,631)	3,104)
Add: Deferred income tax expense (benefit)	(253)	(611)	(461)	(1,277)	(438)	(1,115)
Net income attributable to Medtronic (adjusted)	3,505)	4,428)	3,145)	3,512)	4,193)	1,989)

Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

Medtronic PLC, Financial Data: Reported vs. Adjusted

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Medtronic PLC, adjusted financial ratios

	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
Net Profit Margin
Reported net profit margin	12.03%	15.90%	11.97%	16.56%	15.16%	10.36%
Adjusted net profit margin	11.22%	13.97%	10.44%	12.15%	13.72%	6.64%
Total Asset Turnover
Reported total asset turnover	0.34	0.35	0.32	0.32	0.34	0.33
Adjusted total asset turnover	0.36	0.36	0.33	0.33	0.35	0.33
Financial Leverage
Reported financial leverage	1.77	1.73	1.81	1.79	1.79	1.80
Adjusted financial leverage	1.79	1.75	1.82	1.79	1.77	1.77
Return on Equity (ROE)
Reported ROE	7.30%	9.59%	7.01%	9.44%	9.25%	6.12%
Adjusted ROE	7.18%	8.84%	6.37%	7.15%	8.40%	3.92%
Return on Assets (ROA)
Reported ROA	4.13%	5.54%	3.87%	5.28%	5.16%	3.40%
Adjusted ROA	4.00%	5.05%	3.50%	4.00%	4.75%	2.21%

Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Medtronic PLC adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Medtronic PLC adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Medtronic PLC adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Medtronic PLC adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Medtronic PLC adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Medtronic PLC, Financial Ratios: Reported vs. Adjusted

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	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic	3,758)	5,039)	3,606)	4,789)	4,631)	3,104)
Net sales	31,227)	31,686)	30,117)	28,913)	30,557)	29,953)
Profitability Ratio
Net profit margin¹	12.03%	15.90%	11.97%	16.56%	15.16%	10.36%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Medtronic	3,505)	4,428)	3,145)	3,512)	4,193)	1,989)
Net sales	31,227)	31,686)	30,117)	28,913)	30,557)	29,953)
Profitability Ratio
Adjusted net profit margin²	11.22%	13.97%	10.44%	12.15%	13.72%	6.64%

Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

2023 Calculations

¹ Net profit margin = 100 × Net income attributable to Medtronic ÷ Net sales
= 100 × 3,758 ÷ 31,227 = 12.03%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Medtronic ÷ Net sales
= 100 × 3,505 ÷ 31,227 = 11.22%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Medtronic PLC adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
As Reported
Selected Financial Data (US$ in millions)
Net sales	31,227)	31,686)	30,117)	28,913)	30,557)	29,953)
Total assets	90,948)	90,981)	93,083)	90,689)	89,694)	91,393)
Activity Ratio
Total asset turnover¹	0.34	0.35	0.32	0.32	0.34	0.33
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	31,227)	31,686)	30,117)	28,913)	30,557)	29,953)
Adjusted total assets	87,560)	87,645)	89,969)	87,907)	88,225)	89,987)
Activity Ratio
Adjusted total asset turnover²	0.36	0.36	0.33	0.33	0.35	0.33

Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 31,227 ÷ 90,948 = 0.34

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 31,227 ÷ 87,560 = 0.36

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Medtronic PLC adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	90,948)	90,981)	93,083)	90,689)	89,694)	91,393)
Shareholders’ equity	51,483)	52,551)	51,428)	50,737)	50,091)	50,720)
Solvency Ratio
Financial leverage¹	1.77	1.73	1.81	1.79	1.79	1.80
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	87,560)	87,645)	89,969)	87,907)	88,225)	89,987)
Adjusted shareholders’ equity	48,803)	50,099)	49,342)	49,129)	49,900)	50,737)
Solvency Ratio
Adjusted financial leverage²	1.79	1.75	1.82	1.79	1.77	1.77

Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 90,948 ÷ 51,483 = 1.77

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 87,560 ÷ 48,803 = 1.79

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Medtronic PLC adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic	3,758)	5,039)	3,606)	4,789)	4,631)	3,104)
Shareholders’ equity	51,483)	52,551)	51,428)	50,737)	50,091)	50,720)
Profitability Ratio
ROE¹	7.30%	9.59%	7.01%	9.44%	9.25%	6.12%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Medtronic	3,505)	4,428)	3,145)	3,512)	4,193)	1,989)
Adjusted shareholders’ equity	48,803)	50,099)	49,342)	49,129)	49,900)	50,737)
Profitability Ratio
Adjusted ROE²	7.18%	8.84%	6.37%	7.15%	8.40%	3.92%

Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

2023 Calculations

¹ ROE = 100 × Net income attributable to Medtronic ÷ Shareholders’ equity
= 100 × 3,758 ÷ 51,483 = 7.30%

² Adjusted ROE = 100 × Adjusted net income attributable to Medtronic ÷ Adjusted shareholders’ equity
= 100 × 3,505 ÷ 48,803 = 7.18%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Medtronic PLC adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic	3,758)	5,039)	3,606)	4,789)	4,631)	3,104)
Total assets	90,948)	90,981)	93,083)	90,689)	89,694)	91,393)
Profitability Ratio
ROA¹	4.13%	5.54%	3.87%	5.28%	5.16%	3.40%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Medtronic	3,505)	4,428)	3,145)	3,512)	4,193)	1,989)
Adjusted total assets	87,560)	87,645)	89,969)	87,907)	88,225)	89,987)
Profitability Ratio
Adjusted ROA²	4.00%	5.05%	3.50%	4.00%	4.75%	2.21%

Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

2023 Calculations

¹ ROA = 100 × Net income attributable to Medtronic ÷ Total assets
= 100 × 3,758 ÷ 90,948 = 4.13%

² Adjusted ROA = 100 × Adjusted net income attributable to Medtronic ÷ Adjusted total assets
= 100 × 3,505 ÷ 87,560 = 4.00%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Medtronic PLC adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Medtronic PLC (NYSE:MDT)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Medtronic PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Medtronic PLC, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)