Item 6. Selected Financial Data

5K characters. Original on sec.gov · Markdown

Item 6. Selected Financial Data

Our fiscal year-end is the last Friday in April, and therefore, the total weeks in a fiscal year fluctuates between 52 and 53 weeks. Fiscal years 2018, 2017, 2015, and 2014 were 52-week years. Fiscal year 2016 was a 53-week year, with the additional week occurring in the first quarter. The table below illustrates operating results and other selected financial data for fiscal years 2014 to 2018:



	Fiscal Year
(in millions, except per share data and additional information)	2018			2017			2016			2015(1)			2014
Operating Results:
Net sales	$	29,953		$	29,710		$	28,833		$	20,261		$	17,005
Cost of products sold	9,055			9,291			9,142			6,309			4,333
Research and development expense	2,253			2,193			2,224			1,640			1,477
Selling, general, and administrative expense	9,974			9,711			9,469			6,904			5,847
Amortization of intangible assets	1,823			1,980			1,931			733			349
Restructuring charges, net	30			363			290			237			78
Acquisition-related items	104			220			283			550			117
Certain litigation charges	61			300			26			42			770
Divestiture-related items	114			—			—			—			—
Gain on sale of businesses	(697		)	—			—			—			—
Special charge (gain), net	80			100			—			(38		)	40
Other expense, net	505			222			107			118			181
Operating profit	6,651			5,330			5,361			3,766			3,813
Operating profit margin percent	22.2		%	17.9		%	18.6		%	18.6		%	22.4		%
Investment loss	227			—			70			—			—
Interest expense, net	749			728			955			280			108
Income before income taxes	5,675			4,602			4,336			3,486			3,705
Income tax provision	2,580			578			798			811			640
Net income	3,095			4,024			3,538			2,675			3,065
Net loss attributable to noncontrolling interests	9			4			—			—			—
Net income attributable to Medtronic	$	3,104		$	4,028		$	3,538		$	2,675		$	3,065
Per Ordinary Share:
Basic - Net income attributable to Medtronic	$	2.29		$	2.92		$	2.51		$	2.44		$	3.06
Diluted - Net income attributable to Medtronic	2.27			2.89			2.48			2.41			3.02
Cash dividends declared per ordinary share	1.84			1.72			1.52			1.22			1.12
Financial Position at Fiscal Year-end:
Working capital(2)	$	12,896		$	10,272		$	16,391		$	21,627		$	15,607
Current ratio(2)(3)	2.3:1.0			1.7:1.0			3.3:1.0			3.3:1.0			3.8:1.0
Total assets(2)	91,393			99,857			99,685			106,726			37,984
Long-term debt	23,699			25,921			30,109			33,752			10,315
Shareholders’ equity(2)	50,720			50,208			51,977			53,144			19,357
Additional Information:
Full-time employees at year-end	86,368			91,267			88,063			85,573			43,305
Full-time equivalent employees at year-end	98,003			102,688			98,017			92,500			49,247


(1)	Covidien plc was acquired on January 26, 2015. As such, for the fiscal year ended April 24, 2015, the results of operations of Covidien are reflected in Medtronic’s results of operations for only the fourth quarter due to the timing of the acquisition, which affects comparability.


(2)	Amounts and ratios have been immaterially revised as necessary for prior periods, as discussed in Note 1 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.


(3)	The ratio of current assets to current liabilities. The current ratio at April 28, 2017 excludes current assets and current liabilities held for sale.

Previous: Item 5. Market for Medtronic’s Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities · Next: Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations