UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
ý QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 28, 2005
Commission File Number 1-7707
MEDTRONIC, INC.
(Exact name of registrant as specified in its charter)
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Minnesota |
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41-0793183 |
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(State of incorporation) |
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(I.R.S.
Employer |
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710 Medtronic Parkway |
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Minneapolis, Minnesota 55432 |
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(Address of principal executive offices) |
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Telephone number: (763) 514-4000 |
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Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes ý No o
Shares of common stock, $.10 par value, outstanding on March 3, 2005: 1,209,520,976
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
MEDTRONIC, INC.
CONDENSED STATEMENTS OF CONSOLIDATED EARNINGS
(Unaudited)
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Three months ended |
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Nine months ended |
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January 28, |
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January 23, |
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January 28, |
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January 23, |
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(in millions, except per share data) |
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Net sales |
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$ |
2,530.7 |
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$ |
2,193.8 |
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$ |
7,276.6 |
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$ |
6,421.8 |
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Costs and expenses: |
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Cost of products sold |
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605.6 |
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538.4 |
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1,740.7 |
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1,588.4 |
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Research and development expense |
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241.0 |
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207.1 |
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703.4 |
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607.4 |
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Selling, general and administrative expense |
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814.2 |
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679.3 |
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2,355.9 |
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1,996.5 |
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Purchased in-process research and development |
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— |
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22.0 |
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— |
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23.9 |
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Special charges |
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24.3 |
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— |
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24.3 |
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(4.8 |
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Other expense, net |
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94.6 |
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92.8 |
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212.1 |
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228.8 |
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Interest income, net |
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(13.0 |
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(3.6 |
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(24.4 |
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(1.1 |
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Total costs and expenses |
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1,766.7 |
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1,536.0 |
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5,012.0 |
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4,439.1 |
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Earnings before income taxes |
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764.0 |
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657.8 |
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2,264.6 |
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1,982.7 |
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Provision for income taxes |
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219.9 |
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193.9 |
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655.1 |
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592.3 |
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Net earnings |
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$ |
544.1 |
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$ |
463.9 |
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$ |
1,609.5 |
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$ |
1,390.4 |
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Earnings per share: |
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Basic |
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$ |
0.45 |
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$ |
0.38 |
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$ |
1.33 |
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$ |
1.14 |
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Diluted |
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$ |
0.45 |
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$ |
0.38 |
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$ |
1.32 |
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$ |
1.13 |
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Weighted average shares outstanding: |
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Basic |
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1,208.2 |
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1,211.8 |
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1,208.9 |
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1,214.8 |
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Diluted |
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1,219.1 |
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1,223.1 |
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1,220.0 |
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1,227.2 |
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See accompanying notes to the condensed consolidated financial statements.
2
MEDTRONIC, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
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January 28, |
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April 30, |
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(in millions |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
2,185.5 |
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$ |
1,593.7 |
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Short-term investments |
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744.3 |
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333.8 |
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Accounts receivable, less allowances of $168.9 and $145.3, respectively |
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2,202.9 |
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1,994.3 |
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Inventories |
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1,014.5 |
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877.7 |
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Deferred tax assets, net |
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191.3 |
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197.4 |
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Prepaid expenses and other current assets |
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389.7 |
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315.8 |
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Total current assets |
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6,728.2 |
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5,312.7 |
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Property, plant and equipment |
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3,527.0 |
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3,204.3 |
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Accumulated depreciation |
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(1,722.4 |
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(1,496.0 |
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Net property, plant and equipment |
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1,804.6 |
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1,708.3 |
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Goodwill |
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4,277.8 |
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4,236.9 |
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Other intangible assets, net |
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1,042.6 |
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999.3 |
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Long-term investments |
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1,466.9 |
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1,456.3 |
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Other assets |
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375.3 |
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397.3 |
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Total assets |
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$ |
15,695.4 |
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$ |
14,110.8 |
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