An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee statement of financial position, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Present Value of Future Operating Lease Payments
Analyst Adjustments for Operating Leases
Adjusted Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)
Adjusted Interest Coverage
Estimation of Depreciation Expense, Operating Leased Assets
Estimation of Interest Expense, Operating Lease Obligations
Present Value of Operating Lease Payments, at Beginning of Year

Medtronic PLC, future operating lease payments

USD $ in millions

		Apr 26, 2019	Apr 27, 2018	Apr 28, 2017	Apr 29, 2016	Apr 24, 2015	Apr 25, 2014
	Total undiscounted future operating lease payments
	Discount rate¹

	Total present value of future operating lease payments

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).

¹ Internal rate of return on capital leases

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at
2020		2020
2021		2021
2022		2022
2023		2023
2024		2024
2025 and thereafter		2025
		2026
		2027
Total:

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

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at
2019		2019
2020		2020
2021		2021
2022		2022
2023		2023
2024 and thereafter		2024
		2025
Total:

Based on: 10-K (filing date: 2018-06-22).

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at
2018		2018
2019		2019
2020		2020
2021		2021
2022		2022
2023 and thereafter		2023
		2024
Total:

Based on: 10-K (filing date: 2017-06-27).

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at
2017		2017
2018		2018
2019		2019
2020		2020
2021		2021
2022 and thereafter		2022
		2023
Total:

Based on: 10-K (filing date: 2016-06-28).

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at
2016		2016
2017		2017
2018		2018
2019		2019
2020		2020
2021 and thereafter		2021
		2022
		2023
Total:

Based on: 10-K (filing date: 2015-06-23).

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at
2015		2015
2016		2016
2017		2017
2018		2018
2019		2019
2020 and thereafter		2020
		2021
Total:

Based on: 10-K (filing date: 2014-06-20).

Medtronic PLC, adjustments to financial data

USD $ in millions

		Apr 26, 2019	Apr 27, 2018	Apr 28, 2017	Apr 29, 2016	Apr 24, 2015	Apr 25, 2014
	Adjustment to Total Assets
	Total assets (as reported)
	Add: Operating leased assets¹
	Total assets (adjusted)
	Adjustment to Total Debt
	Total debt (as reported)
	Add: Operating lease obligations²
	Total debt (adjusted)
	Adjustment to Earnings before Interest and Tax (EBIT)
	EBIT³ (as reported)
	Add-back: Rent expense for all operating leases
	Less: Depreciation expense, operating leased assets⁴
	EBIT (adjusted)
	Adjustment to Interest Expense
	Interest expense (as reported)
	Add: Interest expense, operating lease obligations⁵
	Interest expense (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).

^{1, 2} Equal to total present value of future operating lease payments. See Details »

³ See Details »

⁴ See Details »

⁵ See Details »

Medtronic PLC, Financial Data: Reported vs. Adjusted

Medtronic PLC, adjusted ratios

		Apr 26, 2019	Apr 27, 2018	Apr 28, 2017	Apr 29, 2016	Apr 24, 2015	Apr 25, 2014
	Total Asset Turnover¹
	Reported total asset turnover
	Adjusted total asset turnover
	Debt to Equity²
	Reported debt to equity
	Adjusted debt to equity
	Return on Assets³ (ROA)
	Reported ROA
	Adjusted ROA
	Interest Coverage⁴
	Reported interest coverage
	Adjusted interest coverage

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).

¹ See Details »

² See Details »

³ See Details »

⁴ See Details »

Ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Medtronic PLC’s adjusted total asset turnover improved from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Medtronic PLC’s adjusted debt-to-equity improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Medtronic PLC’s adjusted ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted interest coverage	A solvency ratio calculated as adjusted EBIT divided by adjusted interest payments.	Medtronic PLC’s adjusted interest coverage improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

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 (USD $ in millions)
	Net sales
	Total assets
	Ratio
	Total asset turnover¹
	Adjusted for Operating Leases
	Selected Financial Data (USD $ in millions)
	Net sales
	Adjusted total assets
	Ratio
	Adjusted total asset turnover²

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

¹ Total asset turnover = Net sales ÷ Total assets
= hidden ÷ hidden = hidden

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Medtronic PLC’s adjusted total asset turnover improved from 2017 to 2018 and from 2018 to 2019.

		Apr 26, 2019	Apr 27, 2018	Apr 28, 2017	Apr 29, 2016	Apr 24, 2015	Apr 25, 2014
	As Reported
	Selected Financial Data (USD $ in millions)
	Total debt
	Shareholders’ equity
	Ratio
	Debt to equity¹
	Adjusted for Operating Leases
	Selected Financial Data (USD $ in millions)
	Adjusted total debt
	Shareholders’ equity
	Ratio
	Adjusted debt to equity²

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

¹ Debt to equity = Total debt ÷ Shareholders’ equity
= hidden ÷ hidden = hidden

² Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity
= hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Medtronic PLC’s adjusted debt-to-equity improved from 2017 to 2018 and from 2018 to 2019.

		Apr 26, 2019	Apr 27, 2018	Apr 28, 2017	Apr 29, 2016	Apr 24, 2015	Apr 25, 2014
	As Reported
	Selected Financial Data (USD $ in millions)
	Net income attributable to Medtronic
	Total assets
	Ratio
	ROA¹
	Adjusted for Operating Leases
	Selected Financial Data (USD $ in millions)
	Net income attributable to Medtronic
	Adjusted 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

¹ ROA = 100 × Net income attributable to Medtronic ÷ Total assets
= 100 × hidden ÷ hidden = hidden

² Adjusted ROA = 100 × Net income attributable to Medtronic ÷ Adjusted total assets
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Medtronic PLC’s adjusted ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

		Apr 26, 2019	Apr 27, 2018	Apr 28, 2017	Apr 29, 2016	Apr 24, 2015	Apr 25, 2014
	As Reported
	Selected Financial Data (USD $ in millions)
	Earnings before interest and tax¹ (EBIT)
	Interest expense
	Ratio
	Interest coverage²
	Adjusted for Operating Leases
	Selected Financial Data (USD $ in millions)
	Adjusted EBIT
	Adjusted interest expense
	Ratio
	Adjusted interest coverage³

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).

¹ See Details »

2019 Calculations

² Interest coverage = EBIT ÷ Interest expense
= hidden ÷ hidden = hidden

³ Adjusted interest coverage = Adjusted EBIT ÷ Adjusted interest expense
= hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as adjusted EBIT divided by adjusted interest payments.	Medtronic PLC’s adjusted interest coverage ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

USD $ in millions

		Apr 26, 2019	Apr 27, 2018	Apr 28, 2017	Apr 29, 2016	Apr 24, 2015	Apr 25, 2014
	Rent expense for all operating leases
	Less: Estimated interest expense, operating lease obligations¹
	Estimated depreciation expense, operating leased assets

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).

¹ See Details »

USD $ in millions

		Apr 26, 2019	Apr 27, 2018	Apr 28, 2017	Apr 29, 2016	Apr 24, 2015	Apr 25, 2014
	Operating leased assets, at beginning of year¹
	Discount rate²

	Estimated interest expense, operating lease obligations³

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).

¹ See Details »

² Internal rate of return on capital leases

2019 Calculations

³ Estimated interest expense, operating lease obligations = Operating leased assets, at beginning of year × Discount rate
= hidden × hidden = hidden

USD $ in millions

		Apr 26, 2019	Apr 27, 2018	Apr 28, 2017	Apr 29, 2016	Apr 24, 2015	Apr 25, 2014
	Total present value of future operating lease payments¹
	Rent expense for all operating leases
	Discount rate²

	Total present value of operating lease payments, at beginning of year³

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).

¹ Equal to total present value of future operating lease payments. See Details »

² Internal rate of return on capital leases

2019 Calculations

³ Total present value of operating lease payments, at beginning of year = (Total present value of future operating lease payments + Rent expense for all operating leases) ÷ (1 + Discount rate)
= ( hidden + hidden ) ÷ (1 + hidden ) = hidden

	Medtronic PLC	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

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Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Medtronic PLC (MDT)

Analysis of Operating Leases

Present Value of Future Operating Lease Payments

Analyst Adjustments for Operating Leases

Medtronic PLC, Financial Data: Reported vs. Adjusted

Adjusted Ratios for Operating Leases (Summary)

Medtronic PLC, Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)

Adjusted Interest Coverage

Estimation of Depreciation Expense, Operating Leased Assets

Estimation of Interest Expense, Operating Lease Obligations

Present Value of Operating Lease Payments, at Beginning of Year

Medtronic PLC (MDT)

Analysis of Operating Leases

Present Value of Future Operating Lease Payments

2019 Calculations

2018 Calculations

2017 Calculations

2016 Calculations

2015 Calculations

2014 Calculations

Analyst Adjustments for Operating Leases

Medtronic PLC, Financial Data: Reported vs. Adjusted

Adjusted Ratios for Operating Leases (Summary)

Medtronic PLC, Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)

Adjusted Interest Coverage

Estimation of Depreciation Expense, Operating Leased Assets

Estimation of Interest Expense, Operating Lease Obligations

Present Value of Operating Lease Payments, at Beginning of Year