Medtronic PLC (MDT)

Medtronic invests in marketable debt and equity securities, investments that do not have readily determinable fair values, and investments accounted for under the equity method.

Marketable debt securities are classified and accounted for as available-for-sale. These investments are recorded at fair value in the consolidated balance sheets. The change in fair value for available-for-sale securities is recorded, net of taxes, as a component of accumulated other comprehensive loss on the consolidated balance sheets. Medtronic determines the appropriate classification of its investments in marketable debt securities at the time of purchase and reevaluates such determinations at each balance sheet date. The classification of marketable debt securities as current or long-term is based on the nature of the securities and the availability for use in current operations consistent with Medtronic’s management of its capital structure and liquidity.

Certain of Medtronic’s investments in marketable equity securities and other securities are long-term, strategic investments in companies that are in various stages of development and are included in other assets on the consolidated balance sheets. Marketable equity securities are recorded at fair value in the consolidated balance sheets. The change in fair value of marketable equity securities is recognized within other non-operating income, net in the consolidated statements of income. Investments without readily determinable fair values that do not qualify for the practical expedient to estimate fair value using the net asset value per share or its equivalent are accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investments of the issuer. This election is made for each investment separately and is reassessed at each reporting period as to whether the investment continues to qualify for this election. At each reporting period, Medtronic makes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. Equity securities accounted for under the equity method are initially recorded at the amount of Medtronic’s investment and are adjusted each period for Medtronic’s share of the investee’s income or loss and dividends paid. Securities accounted for under the equity method are reviewed quarterly for changes in circumstance or the occurrence of events that suggest Medtronic’s investment may not be recoverable.

Source: 10-K (filing date: 2019-06-21).

Medtronic PLC, adjustment to Net Income Attributable To Medtronic

US$ in millions

	12 months ended	Apr 26, 2019	Apr 27, 2018	Apr 28, 2017	Apr 29, 2016	Apr 24, 2015	Apr 25, 2014
	Net income attributable to Medtronic (as reported)
	Add: Unrealized gain (loss) on investment securities
	Net income attributable to Medtronic (adjusted)

Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23), 10-K (filing date: 2014-06-20).

Medtronic PLC, adjusted ratios

		Apr 26, 2019	Apr 27, 2018	Apr 28, 2017	Apr 29, 2016	Apr 24, 2015	Apr 25, 2014
	Net Profit Margin
	Reported net profit margin
	Adjusted net profit margin
	Return on Equity (ROE)
	Reported ROE
	Adjusted ROE
	Return on Assets (ROA)
	Reported ROA
	Adjusted ROA

Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23), 10-K (filing date: 2014-06-20).

Medtronic PLC, Ratios: Reported vs. Adjusted

		Apr 26, 2019	Apr 27, 2018	Apr 28, 2017	Apr 29, 2016	Apr 24, 2015	Apr 25, 2014
	As Reported
	Selected Financial Data (US$ in millions)
	Net income attributable to Medtronic
	Net sales
	Ratio
	Net profit margin1
	Adjusted: Mark to Market Available-for-sale Securities
	Selected Financial Data (US$ in millions)
	Adjusted net income attributable to Medtronic
	Net sales
	Ratio
	Adjusted net profit margin2

Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23), 10-K (filing date: 2014-06-20).

2019 Calculations

		Apr 26, 2019	Apr 27, 2018	Apr 28, 2017	Apr 29, 2016	Apr 24, 2015	Apr 25, 2014
	As Reported
	Selected Financial Data (US$ in millions)
	Net income attributable to Medtronic
	Shareholders’ equity
	Ratio
	ROE1
	Adjusted: Mark to Market Available-for-sale Securities
	Selected Financial Data (US$ in millions)
	Adjusted net income attributable to Medtronic
	Shareholders’ equity
	Ratio
	Adjusted ROE2

Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23), 10-K (filing date: 2014-06-20).

2019 Calculations

		Apr 26, 2019	Apr 27, 2018	Apr 28, 2017	Apr 29, 2016	Apr 24, 2015	Apr 25, 2014
	As Reported
	Selected Financial Data (US$ in millions)
	Net income attributable to Medtronic
	Total assets
	Ratio
	ROA1
	Adjusted: Mark to Market Available-for-sale Securities
	Selected Financial Data (US$ in millions)
	Adjusted net income attributable to Medtronic
	Total assets
	Ratio
	Adjusted ROA2

Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28), 10-K (filing date: 2015-06-23), 10-K (filing date: 2014-06-20).

2019 Calculations