Medtronic plcMDT
Medtronic plc Segments Disclosure
Segment and Geographic Information
The Company has four reportable segments: Cardiovascular Portfolio, Neuroscience Portfolio, Medical Surgical Portfolio, and Diabetes Operating Unit. The chief operating decision maker (CODM) is our Chief Executive Officer (CEO) and has chosen to organize the entity based upon therapy solutions provided by each segment. The four reportable segments are strategic businesses that are managed separately, as each one develops and manufactures products and provides services oriented toward targeted therapy solutions.
The primary products and services from which the Cardiovascular Portfolio segment derives its revenues include products for the diagnosis, treatment, and management of cardiac rhythm disorders and cardiovascular disease, as well as services to diagnose, treat, and manage heart and vascular-related disorders and diseases.
The primary products and services from which the Neuroscience Portfolio segment derives its revenues include those focused on neurostimulation therapies and drug delivery systems for the treatment of chronic pain, as well as various areas of the spine and brain, along with pelvic health and conditions of the ear, nose, and throat.
The primary products and services from which the Medical Surgical Portfolio segment derives its revenues include those focused on diseases of the respiratory system, gastrointestinal tract, lungs, pelvic region, obesity, and other preventable complications.
The primary products from which the Diabetes Operating Unit segment derives its revenues include those focused on diabetes management, including insulin pumps, continuous glucose monitoring systems and sensors, and smart insulin pens.
The CODM measures and evaluates segment performance and allocates resources based on net sales and segment operating profit. Net sales include end-customer revenues from products developed, manufactured, and distributed by the segments. Significant expense categories include cost of products sold excluding amortization of intangible assets, research and development expense, and selling, general, and administrative expenses. Segment operating profit excludes certain corporate and centralized expenses not allocated to the segments, including interest income and expense, amortization of intangible assets, centralized distribution costs, currency impact of remeasurement and hedging recorded in other operating (income) expense, net, non-operating income or expense items, certain corporate charges, stock-based compensation, and other items not allocated to the segments. The CODM uses segment operating profit in the budget and forecasting process and to monitor budget and forecast variances versus actual when assessing segment performance and allocating capital resources to each segment.
The accounting policies of the segments are the same as those described in Note 1. Certain depreciable assets may be recorded by one segment, while the depreciation expense is allocated to another segment. The allocation of depreciation expense is based on the proportion of the assets used by each segment. The CODM is not regularly provided with expenditures for additions to long-lived assets.
Segment Operating Profit
| Fiscal Year 2025 | |||||||||||||||||||||||||||||
| (in millions) | Cardiovascular | Neuroscience | Medical Surgical | Diabetes | Total | ||||||||||||||||||||||||
| Net sales | $ | 12,481 | $ | 9,846 | $ | 8,407 | $ | 2,755 | $ | 33,489 | |||||||||||||||||||
| Reconciliation of revenues | |||||||||||||||||||||||||||||
Other operating segment net sales (1) | 137 | ||||||||||||||||||||||||||||
Other adjustments (2) | (90) | ||||||||||||||||||||||||||||
| Total consolidated net sales | $ | 33,537 | |||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Cost of products sold, excluding amortization of intangible assets | 3,967 | 2,762 | 3,142 | 1,117 | 10,987 | ||||||||||||||||||||||||
| Research and development expense | 931 | 542 | 606 | 400 | 2,478 | ||||||||||||||||||||||||
| Selling, general, and administrative expense | 2,824 | 2,327 | 1,600 | 791 | 7,541 | ||||||||||||||||||||||||
Other segment items (3) | (41) | 31 | 18 | (43) | (36) | ||||||||||||||||||||||||
| Reportable segment operating profit | $ | 4,801 | $ | 4,183 | $ | 3,042 | $ | 491 | $ | 12,518 | |||||||||||||||||||
| Reconciliation of segment profit / (loss) | |||||||||||||||||||||||||||||
Other operating segment profit (1) | 49 | ||||||||||||||||||||||||||||
| Corporate | (1,837) | ||||||||||||||||||||||||||||
| Interest expense, net | (729) | ||||||||||||||||||||||||||||
| Other non-operating income, net | 402 | ||||||||||||||||||||||||||||
| Amortization of intangible assets | (1,807) | ||||||||||||||||||||||||||||
| Stock-based compensation | (429) | ||||||||||||||||||||||||||||
| Centralized distribution costs | (1,650) | ||||||||||||||||||||||||||||
| Currency | (3) | ||||||||||||||||||||||||||||
| Restructuring and associated costs | (303) | ||||||||||||||||||||||||||||
| Acquisition and divestiture-related items | (124) | ||||||||||||||||||||||||||||
| Certain litigation charges, net | (317) | ||||||||||||||||||||||||||||
| Medical device regulations | (52) | ||||||||||||||||||||||||||||
Other adjustments (2) | (90) | ||||||||||||||||||||||||||||
| Income before income taxes | $ | 5,628 | |||||||||||||||||||||||||||
| Fiscal Year 2024 | |||||||||||||||||||||||||||||
| (in millions) | Cardiovascular | Neuroscience | Medical Surgical | Diabetes | Total | ||||||||||||||||||||||||
| Net sales | $ | 11,831 | $ | 9,406 | $ | 8,417 | $ | 2,488 | $ | 32,142 | |||||||||||||||||||
| Reconciliation of revenues | |||||||||||||||||||||||||||||
Other operating segment net sales (1) | 221 | ||||||||||||||||||||||||||||
| Total consolidated net sales | $ | 32,364 | |||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Cost of products sold, excluding amortization of intangible assets | 3,731 | 2,634 | 3,057 | 963 | 10,385 | ||||||||||||||||||||||||
| Research and development expense | 906 | 556 | 587 | 402 | 2,452 | ||||||||||||||||||||||||
| Selling, general, and administrative expense | 2,748 | 2,245 | 1,594 | 778 | 7,365 | ||||||||||||||||||||||||
Other segment items (3) | (28) | 30 | 9 | (49) | (39) | ||||||||||||||||||||||||
| Reportable segment operating profit | $ | 4,474 | $ | 3,940 | $ | 3,170 | $ | 394 | $ | 11,979 | |||||||||||||||||||
| Reconciliation of segment profit / (loss) | |||||||||||||||||||||||||||||
Other operating segment profit (1) | 10 | ||||||||||||||||||||||||||||
| Corporate | (1,784) | ||||||||||||||||||||||||||||
| Interest expense, net | (719) | ||||||||||||||||||||||||||||
| Other non-operating income, net | 412 | ||||||||||||||||||||||||||||
| Amortization of intangible assets | (1,693) | ||||||||||||||||||||||||||||
| Stock-based compensation | (393) | ||||||||||||||||||||||||||||
| Centralized distribution costs | (1,609) | ||||||||||||||||||||||||||||
| Currency | 68 | ||||||||||||||||||||||||||||
| Restructuring and associated costs | (389) | ||||||||||||||||||||||||||||
| Acquisition and divestiture-related items | (777) | ||||||||||||||||||||||||||||
| Certain litigation charges, net | (149) | ||||||||||||||||||||||||||||
| Medical device regulations | (119) | ||||||||||||||||||||||||||||
| Income before income taxes | $ | 4,837 | |||||||||||||||||||||||||||
| Fiscal Year 2023 | |||||||||||||||||||||||||||||
| (in millions) | Cardiovascular | Neuroscience | Medical Surgical | Diabetes | Total | ||||||||||||||||||||||||
| Net sales | $ | 11,522 | $ | 8,959 | $ | 7,989 | $ | 2,262 | $ | 30,731 | |||||||||||||||||||
| Reconciliation of revenues | |||||||||||||||||||||||||||||
Other operating segment net sales (1) | 495 | ||||||||||||||||||||||||||||
| Total consolidated net sales | $ | 31,227 | |||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Cost of products sold, excluding amortization of intangible assets | 3,562 | 2,411 | 2,859 | 871 | 9,704 | ||||||||||||||||||||||||
| Research and development expense | 815 | 573 | 543 | 392 | 2,323 | ||||||||||||||||||||||||
| Selling, general, and administrative expense | 2,653 | 2,189 | 1,549 | 705 | 7,096 | ||||||||||||||||||||||||
Other segment items (3) | (31) | 74 | (10) | (90) | (57) | ||||||||||||||||||||||||
| Reportable segment operating profit | $ | 4,522 | $ | 3,712 | $ | 3,048 | $ | 383 | $ | 11,664 | |||||||||||||||||||
| Reconciliation of segment profit / (loss) | |||||||||||||||||||||||||||||
Other operating segment loss (1) | (89) | ||||||||||||||||||||||||||||
| Corporate | (1,763) | ||||||||||||||||||||||||||||
| Interest expense, net | (636) | ||||||||||||||||||||||||||||
| Other non-operating income, net | 515 | ||||||||||||||||||||||||||||
| Amortization of intangible assets | (1,698) | ||||||||||||||||||||||||||||
| Stock-based compensation | (355) | ||||||||||||||||||||||||||||
| Centralized distribution costs | (1,558) | ||||||||||||||||||||||||||||
| Currency | 465 | ||||||||||||||||||||||||||||
| Restructuring and associated costs | (647) | ||||||||||||||||||||||||||||
| Acquisition and divestiture-related items | (345) | ||||||||||||||||||||||||||||
| Certain litigation charges, net | 30 | ||||||||||||||||||||||||||||
| Medical device regulations | (150) | ||||||||||||||||||||||||||||
| Commitments to the Medtronic Foundation and Medtronic LABS | (70) | ||||||||||||||||||||||||||||
| Income before income taxes | $ | 5,364 | |||||||||||||||||||||||||||
(1)Includes the operations and ongoing transition agreements from businesses the Company has exited or divested.
(2)Includes incremental Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court of Italy relating to certain prior years since 2015.
(3)Other segment items for each reportable segment primarily includes royalty expense. The Cardiovascular and Diabetes segments also include income from funded research and development arrangements.
Total Assets and Depreciation Expense
| Total Assets | Depreciation Expense | ||||||||||||||||||||||||||||
| (in millions) | April 25, 2025 | April 26, 2024 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||
| Cardiovascular | $ | 16,548 | $ | 16,128 | $ | 225 | $ | 199 | $ | 209 | |||||||||||||||||||
| Neuroscience | 18,476 | 18,270 | 282 | 252 | 267 | ||||||||||||||||||||||||
| Medical Surgical | 33,317 | 33,586 | 205 | 194 | 203 | ||||||||||||||||||||||||
| Diabetes | 4,136 | 3,996 | 112 | 94 | 80 | ||||||||||||||||||||||||
| Total reportable segments | 72,476 | 71,980 | 823 | 739 | 759 | ||||||||||||||||||||||||
Other operating segment (1) | 296 | 547 | 1 | — | 2 | ||||||||||||||||||||||||
| Corporate | 18,906 | 17,455 | 229 | 215 | 238 | ||||||||||||||||||||||||
| Total | $ | 91,680 | $ | 89,981 | $ | 1,054 | $ | 954 | $ | 999 | |||||||||||||||||||
(1)Includes the operations and ongoing transition agreements from businesses the Company has exited or divested.
Geographic Information
Net sales are attributed to the country based on the location of the customer taking possession of the products or in which the services are rendered. Geographic property, plant, and equipment are attributed to the country based on the physical location of the assets.
The following table presents net sales for fiscal years 2025, 2024, and 2023, and property, plant, and equipment, net at April 25, 2025 and April 26, 2024 for the Company's country of domicile, countries with significant concentrations, and all other countries:
| Net sales | Property, plant, and equipment, net | ||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | April 25, 2025 | April 26, 2024 | ||||||||||||||||||||||||
| Ireland | $ | 116 | $ | 113 | $ | 98 | $ | 291 | $ | 252 | |||||||||||||||||||
| United States | 17,171 | 16,562 | 16,373 | 5,133 | 4,593 | ||||||||||||||||||||||||
| Rest of world | 16,250 | 15,689 | 14,756 | 1,414 | 1,286 | ||||||||||||||||||||||||
| Total other countries, excluding Ireland | 33,421 | 32,251 | 31,129 | 6,547 | 5,879 | ||||||||||||||||||||||||
| Total | $ | 33,537 | $ | 32,364 | $ | 31,227 | $ | 6,837 | $ | 6,131 | |||||||||||||||||||
No single customer represented over 10 percent of the Company’s consolidated net sales in fiscal years 2025, 2024, or 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 20, 2025 | Showing above |
| 2024 | Jun 20, 2024 | |
| 2023 | Jun 22, 2023 | |
| 2022 | Jun 23, 2022 | |
| 2021 | Jun 25, 2021 | |
| 2020 | Jun 19, 2020 | |
| 2019 | Jun 21, 2019 | |
| 2018 | Jun 22, 2018 | |
| 2017 | Jun 27, 2017 | |
| 2016 | Jun 28, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.