2015 Q2 Form 10-K Financial Statement

#000161310315000028 Filed on June 23, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2014 Q2 2014 Q1
Revenue $7.304B $4.566B $4.163B
YoY Change 59.96% 2.38% 3.38%
Cost Of Revenue $2.934B $1.171B $1.050B
YoY Change 150.56% 3.26% 5.11%
Gross Profit $4.370B $3.395B $3.113B
YoY Change 28.72% 2.07% 2.81%
Gross Profit Margin 59.83% 74.35% 74.78%
Selling, General & Admin $2.404B $1.539B $1.454B
YoY Change 56.21% 4.34% 3.78%
% of Gross Profit 55.01% 45.33% 46.71%
Research & Development $528.0M $385.0M $360.0M
YoY Change 37.14% -5.87% -4.26%
% of Gross Profit 12.08% 11.34% 11.56%
Depreciation & Amortization $677.0M $215.0M $214.0M
YoY Change 214.88% 2.87% 0.0%
% of Gross Profit 15.49% 6.33% 6.87%
Operating Expenses $3.372B $2.054B $1.948B
YoY Change 64.17% 6.37% 3.51%
Operating Profit $998.0M $1.341B $1.165B
YoY Change -25.58% -3.87% 1.66%
Interest Expense -$194.0M -$25.00M -$25.00M
YoY Change 676.0% -66.22% -45.65%
% of Operating Profit -19.44% -1.86% -2.15%
Other Income/Expense, Net
YoY Change
Pretax Income $187.0M $481.0M $955.0M
YoY Change -61.12% -58.32% -17.32%
Income Tax $188.0M $33.00M $193.0M
% Of Pretax Income 100.53% 6.86% 20.21%
Net Earnings -$1.000M $448.0M $762.0M
YoY Change -100.22% -53.77% -22.87%
Net Earnings / Revenue -0.01% 9.81% 18.3%
Basic Earnings Per Share $0.00 $0.45 $0.76
Diluted Earnings Per Share $0.00 $0.44 $0.75
COMMON SHARES
Basic Shares Outstanding 1.416B shares
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q2 2014 Q2 2014 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $19.48B $14.24B $13.67B
YoY Change 36.79% 27.95% 454.67%
Cash & Equivalents $4.843B $1.403B $1.304B
Short-Term Investments $14.64B $12.84B $12.36B
Other Short-Term Assets $2.789B $1.433B $1.318B
YoY Change 94.63% 11.69% 3.29%
Inventory $3.463B $1.725B $1.782B
Prepaid Expenses
Receivables $5.112B $3.811B $3.619B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $30.84B $21.21B $20.39B
YoY Change 45.42% 18.81% 122.53%
LONG-TERM ASSETS
Property, Plant & Equipment $4.699B $2.392B $2.408B
YoY Change 96.45% -3.94% -3.76%
Goodwill $40.53B $10.59B
YoY Change 282.61% 2.56%
Intangibles $28.10B $2.286B
YoY Change 1129.27%
Long-Term Investments
YoY Change
Other Assets $1.737B $1.162B $1.472B
YoY Change 49.48% -25.32% 69.98%
Total Long-Term Assets $75.84B $16.73B $16.85B
YoY Change 353.24% -1.85% -34.68%
TOTAL ASSETS
Total Short-Term Assets $30.84B $21.21B $20.39B
Total Long-Term Assets $75.84B $16.73B $16.85B
Total Assets $106.7B $37.94B $37.23B
YoY Change 181.17% 8.72% 6.53%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.610B $742.0M $567.0M
YoY Change 116.98% 8.96% -0.35%
Accrued Expenses $4.033B $2.935B $2.124B
YoY Change 37.41% 30.16% 2.71%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $2.419B $1.613B $2.618B
YoY Change 49.97% 77.25% -36.21%
Total Short-Term Liabilities $9.173B $5.559B $5.632B
YoY Change 65.01% 40.73% -19.06%
LONG-TERM LIABILITIES
Long-Term Debt $33.17B $10.32B $9.601B
YoY Change 221.58% 5.89% 31.27%
Other Long-Term Liabilities $1.819B $235.0M $2.286B
YoY Change 674.04% -89.31% 3.81%
Total Long-Term Liabilities $34.99B $235.0M $11.89B
YoY Change 14789.36% -98.03% 24.92%
TOTAL LIABILITIES
Total Short-Term Liabilities $9.173B $5.559B $5.632B
Total Long-Term Liabilities $34.99B $235.0M $11.89B
Total Liabilities $53.46B $18.50B $17.88B
YoY Change 188.95% 13.99% 4.46%
SHAREHOLDERS EQUITY
Retained Earnings $54.41B $19.94B
YoY Change 172.89%
Common Stock $0.00 $100.0M
YoY Change -100.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $53.23B $19.44B $19.35B
YoY Change
Total Liabilities & Shareholders Equity $106.7B $37.94B $37.23B
YoY Change 181.17% 8.72% 6.53%

Cashflow Statement

Concept 2015 Q2 2014 Q2 2014 Q1
OPERATING ACTIVITIES
Net Income -$1.000M $448.0M $762.0M
YoY Change -100.22% -53.77% -22.87%
Depreciation, Depletion And Amortization $677.0M $215.0M $214.0M
YoY Change 214.88% 2.87% 0.0%
Cash From Operating Activities $1.912B $1.328B $1.612B
YoY Change 43.98% 4.57% 11.48%
INVESTING ACTIVITIES
Capital Expenditures -$255.0M -$105.0M -$95.00M
YoY Change 142.86% -13.22% -24.0%
Acquisitions
YoY Change
Other Investing Activities -$14.96B -$420.0M -$1.122B
YoY Change 3461.9% -9.87% -23.26%
Cash From Investing Activities -$15.22B -$525.0M -$1.217B
YoY Change 2798.1% -10.56% -23.31%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.151B -717.0M -142.0M
YoY Change -260.53% -24.68% -63.31%
NET CHANGE
Cash From Operating Activities 1.912B 1.328B 1.612B
Cash From Investing Activities -15.22B -525.0M -1.217B
Cash From Financing Activities 1.151B -717.0M -142.0M
Net Change In Cash -12.15B 86.00M 253.0M
YoY Change -14230.23% -131.97% -147.92%
FREE CASH FLOW
Cash From Operating Activities $1.912B $1.328B $1.612B
Capital Expenditures -$255.0M -$105.0M -$95.00M
Free Cash Flow $2.167B $1.433B $1.707B
YoY Change 51.22% 3.02% 8.66%

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0.011
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0.005
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18000000 USD
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366000000 USD
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72000000 USD
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53000000 USD
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254000000 USD
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30000000 USD
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20000000 USD
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CY2014 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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-58000000 USD
CY2015 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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11000000 USD
CY2014Q2 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
2006000000 USD
CY2015Q2 us-gaap Other Liabilities Current
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2464000000 USD
CY2014Q2 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
235000000 USD
CY2015Q2 us-gaap Other Liabilities Noncurrent
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1819000000 USD
CY2013 us-gaap Other Noncash Income Expense
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0 USD
CY2014 us-gaap Payments To Acquire Investments
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10895000000 USD
CY2015 us-gaap Payments To Acquire Investments
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7582000000 USD
CY2014 us-gaap Other Noncash Income Expense
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28000000 USD
CY2015 us-gaap Other Noncash Income Expense
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134000000 USD
CY2013Q2 us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Credit Losses On Debt Securities Held
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9000000 USD
CY2014Q2 us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Credit Losses On Debt Securities Held
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4000000 USD
CY2014 us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Reductions Securities Sold
OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsReductionsSecuritiesSold
5000000 USD
CY2015 us-gaap Other Than Temporary Impairment Credit Losses Recognized In Earnings Reductions Securities Sold
OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsReductionsSecuritiesSold
4000000 USD
CY2013 us-gaap Payments For Legal Settlements
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175000000 USD
CY2014 us-gaap Payments For Legal Settlements
PaymentsForLegalSettlements
15000000 USD
CY2015 us-gaap Payments For Legal Settlements
PaymentsForLegalSettlements
809000000 USD
CY2013 us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
14000000 USD
CY2014 us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
29000000 USD
CY2015 us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
-89000000 USD
CY2013 us-gaap Payments For Repurchase Of Common Stock
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1247000000 USD
CY2014 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
2553000000 USD
CY2015 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
1920000000 USD
CY2013 us-gaap Payments Of Dividends Common Stock
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1055000000 USD
CY2014 us-gaap Payments Of Dividends Common Stock
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1116000000 USD
CY2015 us-gaap Payments Of Dividends Common Stock
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1337000000 USD
CY2013 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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820000000 USD
CY2014 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
385000000 USD
CY2015 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
14884000000 USD
CY2013 us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
12321000000 USD
CY2013 us-gaap Payments To Acquire Property Plant And Equipment
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457000000 USD
CY2014 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
396000000 USD
CY2015 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
571000000 USD
CY2013 us-gaap Pension And Other Postretirement Benefit Expense
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419000000 USD
CY2014 us-gaap Pension And Other Postretirement Benefit Expense
PensionAndOtherPostretirementBenefitExpense
419000000 USD
CY2015 us-gaap Pension And Other Postretirement Benefit Expense
PensionAndOtherPostretirementBenefitExpense
433000000 USD
CY2014Q2 us-gaap Pension And Other Postretirement Defined Benefit Plans Liabilities Noncurrent
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662000000 USD
CY2015Q2 us-gaap Pension And Other Postretirement Defined Benefit Plans Liabilities Noncurrent
PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent
1535000000 USD
CY2015Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.20
CY2015Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
128000000 shares
CY2014Q2 us-gaap Prepaid Expense And Other Assets Current
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697000000 USD
CY2015Q2 us-gaap Prepaid Expense And Other Assets Current
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1454000000 USD
CY2014Q2 us-gaap Prepaid Taxes
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320000000 USD
CY2015Q2 us-gaap Prepaid Taxes
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427000000 USD
CY2013 us-gaap Proceeds From Issuance Of Long Term Debt
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2980000000 USD
CY2014 us-gaap Proceeds From Issuance Of Long Term Debt
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1994000000 USD
CY2015 us-gaap Proceeds From Issuance Of Long Term Debt
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19942000000 USD
CY2013 us-gaap Proceeds From Issuance Or Sale Of Equity
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267000000 USD
CY2014 us-gaap Proceeds From Issuance Or Sale Of Equity
ProceedsFromIssuanceOrSaleOfEquity
1307000000 USD
CY2015 us-gaap Proceeds From Issuance Or Sale Of Equity
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649000000 USD
CY2013 us-gaap Proceeds From Payments For Other Financing Activities
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-22000000 USD
CY2014 us-gaap Proceeds From Payments For Other Financing Activities
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14000000 USD
CY2015Q1 us-gaap Sales Revenue Net
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4318000000 USD
CY2014Q4 us-gaap Sales Revenue Net
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CY2015Q2 us-gaap Property Plant And Equipment Gross
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8863000000 USD
CY2013Q2 us-gaap Property Plant And Equipment Net
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2490000000 USD
CY2014Q2 us-gaap Property Plant And Equipment Net
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2392000000 USD
CY2015Q2 us-gaap Property Plant And Equipment Net
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4699000000 USD
CY2013 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
51000000 USD
CY2015 us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
-31000000 USD
CY2013 us-gaap Proceeds From Repayments Of Short Term Debt
ProceedsFromRepaymentsOfShortTermDebt
-720000000 USD
CY2014 us-gaap Proceeds From Repayments Of Short Term Debt
ProceedsFromRepaymentsOfShortTermDebt
127000000 USD
CY2015 us-gaap Proceeds From Repayments Of Short Term Debt
ProceedsFromRepaymentsOfShortTermDebt
-1000000 USD
CY2013 us-gaap Proceeds From Sale Maturity And Collections Of Investments
ProceedsFromSaleMaturityAndCollectionsOfInvestments
10511000000 USD
CY2014 us-gaap Proceeds From Sale Maturity And Collections Of Investments
ProceedsFromSaleMaturityAndCollectionsOfInvestments
8111000000 USD
CY2015 us-gaap Proceeds From Sale Maturity And Collections Of Investments
ProceedsFromSaleMaturityAndCollectionsOfInvestments
5890000000 USD
CY2013 us-gaap Proceeds From Short Term Debt Maturing In More Than Three Months
ProceedsFromShortTermDebtMaturingInMoreThanThreeMonths
2628000000 USD
CY2014 us-gaap Proceeds From Short Term Debt Maturing In More Than Three Months
ProceedsFromShortTermDebtMaturingInMoreThanThreeMonths
1176000000 USD
CY2015 us-gaap Proceeds From Short Term Debt Maturing In More Than Three Months
ProceedsFromShortTermDebtMaturingInMoreThanThreeMonths
150000000 USD
CY2014Q2 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
6439000000 USD
CY2014 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
43000000 USD
CY2015 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
35000000 USD
CY2014 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodBeforeTax
15000000 USD
CY2015 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodBeforeTax
205000000 USD
CY2014 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
8000000 USD
CY2015 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
128000000 USD
CY2013 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
2214000000 USD
CY2014 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
565000000 USD
CY2015 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
1268000000 USD
CY2013 us-gaap Repayments Of Short Term Debt Maturing In More Than Three Months
RepaymentsOfShortTermDebtMaturingInMoreThanThreeMonths
2700000000 USD
CY2014 us-gaap Repayments Of Short Term Debt Maturing In More Than Three Months
RepaymentsOfShortTermDebtMaturingInMoreThanThreeMonths
1301000000 USD
CY2015 us-gaap Repayments Of Short Term Debt Maturing In More Than Three Months
RepaymentsOfShortTermDebtMaturingInMoreThanThreeMonths
150000000 USD
CY2013 us-gaap Research And Development Expense Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseExcludingAcquiredInProcessCost
1557000000 USD
CY2014 us-gaap Research And Development Expense Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseExcludingAcquiredInProcessCost
1477000000 USD
CY2015 us-gaap Research And Development Expense Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseExcludingAcquiredInProcessCost
1640000000 USD
CY2014Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
19940000000 USD
CY2015Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
54414000000 USD
CY2013 us-gaap Sales Revenue Net
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16590000000 USD
CY2013Q3 us-gaap Sales Revenue Net
SalesRevenueNet
4083000000 USD
CY2013Q4 us-gaap Sales Revenue Net
SalesRevenueNet
4194000000 USD
CY2014Q1 us-gaap Sales Revenue Net
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4163000000 USD
CY2014Q2 us-gaap Sales Revenue Net
SalesRevenueNet
4566000000 USD
CY2014 us-gaap Sales Revenue Net
SalesRevenueNet
17005000000 USD
CY2014Q3 us-gaap Sales Revenue Net
SalesRevenueNet
4273000000 USD
CY2015Q2 us-gaap Sales Revenue Net
SalesRevenueNet
7304000000 USD
CY2015 us-gaap Sales Revenue Net
SalesRevenueNet
20261000000 USD
CY2013 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
5698000000 USD
CY2014 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
5847000000 USD
CY2015 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
6904000000 USD
CY2013 us-gaap Share Based Compensation
ShareBasedCompensation
152000000 USD
CY2014 us-gaap Share Based Compensation
ShareBasedCompensation
145000000 USD
CY2015 us-gaap Share Based Compensation
ShareBasedCompensation
439000000 USD
CY2013 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.0264
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.0202
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.0166
CY2013 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.2622
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.2520
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.2129
CY2013 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0094
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0188
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0099
CY2013 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
7.42
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
12.00
CY2015 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
25.39
CY2013 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y6M
CY2014 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y4M24D
CY2015 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P4Y2M27D
CY2013 us-gaap Shipping Handling And Transportation Costs
ShippingHandlingAndTransportationCosts
182000000 USD
CY2014 us-gaap Shipping Handling And Transportation Costs
ShippingHandlingAndTransportationCosts
194000000 USD
CY2015 us-gaap Shipping Handling And Transportation Costs
ShippingHandlingAndTransportationCosts
284000000 USD
CY2014Q2 us-gaap Short Term Investments
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12838000000 USD
CY2015Q2 us-gaap Short Term Investments
ShortTermInvestments
14637000000 USD
CY2013Q2 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
35000000 USD
CY2014Q2 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
32000000 USD
CY2015Q2 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
135000000 USD
CY2015 us-gaap Standard Product Warranty Accrual Additions From Business Acquisition
StandardProductWarrantyAccrualAdditionsFromBusinessAcquisition
23000000 USD
CY2014 us-gaap Standard Product Warranty Accrual Payments
StandardProductWarrantyAccrualPayments
28000000 USD
CY2015 us-gaap Standard Product Warranty Accrual Payments
StandardProductWarrantyAccrualPayments
24000000 USD
CY2015 us-gaap Standard Product Warranty Accrual Preexisting Increase Decrease
StandardProductWarrantyAccrualPreexistingIncreaseDecrease
74000000 USD
CY2014 us-gaap Standard Product Warranty Accrual Warranties Issued
StandardProductWarrantyAccrualWarrantiesIssued
25000000 USD
CY2015 us-gaap Standard Product Warranty Accrual Warranties Issued
StandardProductWarrantyAccrualWarrantiesIssued
30000000 USD
CY2015 us-gaap Stock Issued During Period Shares New Issues
StockIssuedDuringPeriodSharesNewIssues
1872 shares
CY2015 us-gaap Stock Issued During Period Value Acquisitions
StockIssuedDuringPeriodValueAcquisitions
33787000000 USD
CY2015 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
75000 USD
CY2015Q2 us-gaap Stock Repurchase Program Number Of Shares Authorized To Be Repurchased
StockRepurchaseProgramNumberOfSharesAuthorizedToBeRepurchased
80000000 shares
CY2013 us-gaap Stock Repurchased And Retired During Period Value
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1247000000 USD
CY2014 us-gaap Stock Repurchased And Retired During Period Value
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2553000000 USD
CY2015 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
1920000000 USD
CY2014 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
47800000 shares
CY2015 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
29800000 shares
CY2012Q2 us-gaap Stockholders Equity
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17113000000 USD
CY2013Q2 us-gaap Stockholders Equity
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CY2014Q2 us-gaap Stockholders Equity
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CY2015Q2 us-gaap Stockholders Equity
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53230000000 USD
CY2015 us-gaap Stockholders Equity Other
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CY2015 us-gaap Tax Adjustments Settlements And Unusual Provisions
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349000000 USD
CY2015Q2 us-gaap Tax Credit Carryforward Amount
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183000000 USD
CY2013Q2 us-gaap Undistributed Earnings Of Foreign Subsidiaries
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18123000000 USD
CY2014Q2 us-gaap Undistributed Earnings Of Foreign Subsidiaries
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20529000000 USD
CY2015Q2 us-gaap Undistributed Earnings Of Foreign Subsidiaries
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27837000000 USD
CY2012Q2 us-gaap Unrecognized Tax Benefits
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917000000 USD
CY2013Q2 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1068000000 USD
CY2014Q2 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1172000000 USD
CY2015Q2 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2860000000 USD
CY2013 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
21000000 USD
CY2014 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
58000000 USD
CY2015 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
40000000 USD
CY2013 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
6000000 USD
CY2014 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
66000000 USD
CY2015 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
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33000000 USD
CY2013Q2 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
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88000000 USD
CY2014Q2 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
141000000 USD
CY2015Q2 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
656000000 USD
CY2013 us-gaap Unrecognized Tax Benefits Increases Resulting From Acquisition
UnrecognizedTaxBenefitsIncreasesResultingFromAcquisition
0 USD
CY2014 us-gaap Unrecognized Tax Benefits Increases Resulting From Acquisition
UnrecognizedTaxBenefitsIncreasesResultingFromAcquisition
0 USD
CY2015 us-gaap Unrecognized Tax Benefits Increases Resulting From Acquisition
UnrecognizedTaxBenefitsIncreasesResultingFromAcquisition
1199000000 USD
CY2013 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
169000000 USD
CY2014 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
166000000 USD
CY2015 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
231000000 USD
CY2013 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
12000000 USD
CY2014 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
64000000 USD
CY2015 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
331000000 USD
CY2013 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
3000000 USD
CY2014 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
2000000 USD
CY2015 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
0 USD
CY2013Q2 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
1028000000 USD
CY2014Q2 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
1104000000 USD
CY2015Q2 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
2233000000 USD
CY2013 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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1027500000 shares
CY2014 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
1013600000 shares
CY2015 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
1109000000 shares
CY2013 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1019300000 shares
CY2014 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1002100000 shares
CY2015 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
1095500000 shares
CY2015 us-gaap Fiscal Period
FiscalPeriod
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Fiscal Year-End</font><font style="font-family:inherit;font-size:10pt;"> The Company utilizes a 52/53-week fiscal year, ending the last Friday in April. The Company&#8217;s fiscal years </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">2015</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">2014</font><font style="font-family:inherit;font-size:10pt;">, and </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">2013</font><font style="font-family:inherit;font-size:10pt;"> ended on </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">April&#160;24, 2015</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">April&#160;25, 2014</font><font style="font-family:inherit;font-size:10pt;">, and </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">April&#160;26, 2013</font><font style="font-family:inherit;font-size:10pt;">, respectively, all of which were 52-week years. Fiscal year 2016 is a 53-week year, with the extra week occurring during the first quarter. </font></div></div>
CY2015 us-gaap Guarantees Indemnifications And Warranties Policies
GuaranteesIndemnificationsAndWarrantiesPolicies
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Tax Guarantees </font><font style="font-family:inherit;font-size:10pt;">As a result of the recent acquisition of Covidien, the Company has guarantee commitments and indemnifications with Tyco International plc (Tyco International) and TE Connectivity Ltd. (TE Connectivity) which relate to certain contingent tax liabilities as part of a tax sharing agreement. These commitments and indemnifications were recorded at their respective fair values as of the Acquisition Date. Each reporting period, the Company evaluates the potential loss that it believes is probable. This guarantee currently has not been amortized into income because there has been no predictable pattern of performance. As a result, the liability generally will be reduced upon the Company&#8217;s release from its obligations or as payments are made. </font></div></div>
CY2015 us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Contingencies</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company and its affiliates are involved in a number of legal actions involving product liability, intellectual property disputes, shareholder related matters, environmental proceedings, income tax disputes, and other matters. The outcomes of these legal actions are not within the Company&#8217;s complete control and may not be known for prolonged periods of time. In some actions, the claimants seek damages, as well as other relief (including injunctions barring the sale of products that are the subject of the lawsuit), that could require significant expenditures or result in lost revenues. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. Estimates of probable losses resulting from litigation and governmental proceedings involving the Company are inherently difficult to predict, particularly when the matters are in early procedural stages, with incomplete scientific facts or legal discovery; involve unsubstantiated or indeterminate claims for damages; potentially involve penalties, fines or punitive damages; or could result in a change in business practice. In addition to the litigation contingencies referenced below, the Company also has certain guarantee obligations that may potentially result in future costs. While it is not possible to predict the outcome for most of the matters discussed below, the Company believes it is possible that costs associated with them could have a material adverse impact on the Company&#8217;s consolidated earnings, financial position, or cash flows. </font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Product Liability Matters</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;text-decoration:underline;">Sprint Fidelis</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In 2007, a putative class action was filed in the Ontario Superior Court of Justice in Canada seeking damages for personal injuries allegedly related to Medtronic, Inc.&#8217;s Sprint Fidelis family of defibrillation leads. On October 20, 2009, the court certified a class proceeding but denied class certification on plaintiffs&#8217; claim for punitive damages. Pretrial proceedings are underway. The Company has not recorded an expense related to damages in connection with this matter because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company cannot reasonably estimate the range of loss, if any, that may result from this matter.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;text-decoration:underline;">INFUSE Litigation</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As of June 1, 2015, plaintiffs had filed approximately </font><font style="font-family:inherit;font-size:10pt;">800</font><font style="font-family:inherit;font-size:10pt;"> lawsuits against Medtronic in the U.S. state and federal courts, reflecting approximately </font><font style="font-family:inherit;font-size:10pt;">1,500</font><font style="font-family:inherit;font-size:10pt;"> individual personal injury claims from the INFUSE bone graft product. Certain law firms have advised Medtronic that they represent a large number of similar claimants against Medtronic. The Company estimates those law firms represent approximately </font><font style="font-family:inherit;font-size:10pt;">4,600</font><font style="font-family:inherit;font-size:10pt;"> unfiled claimants. Medtronic recorded expenses of </font><font style="font-family:inherit;font-size:10pt;">$37 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$140 million</font><font style="font-family:inherit;font-size:10pt;"> in fiscal years 2015 and 2014, respectively, related to probable and reasonably estimated damages and expenses in connection with these matters. See "Accrued Certain Litigation Charges" within Note 1 for additional discussion.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;text-decoration:underline;">Other INFUSE Litigation</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On June 5, 2014, Humana, Inc. filed a lawsuit for unspecified monetary damages in the U.S. District Court for the Western District of Tennessee, alleging that Medtronic, Inc. violated federal racketeering (RICO) law and various state laws, by conspiring with physicians to promote unapproved uses of INFUSE. The Company has not recorded an expense related to damages in connection with this matter because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company cannot reasonably estimate the range of loss, if any, that may result from this matter.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;text-decoration:underline;">Pelvic Mesh Litigation</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Covidien currently is involved in litigation in various state and federal courts against manufacturers of pelvic mesh products alleging personal injuries resulting from the implantation of those products. Two subsidiaries of Covidien supplied pelvic mesh products to one of the manufacturers named in the litigation and Covidien is indemnifying that manufacturer on certain claims. In addition, the Company believes that this manufacturer has an obligation to indemnify Covidien with respect to the promotion of the pelvic mesh products. The litigation includes a federal multi-district litigation in the United States District Court for the Northern District of West Virginia and cases in various state courts and jurisdictions outside the United States. Generally, complaints allege design and manufacturing claims, failure to warn, breach of warranty, fraud, violations of state consumer protection laws and loss of consortium claims. As of June 1, 2015, approximately </font><font style="font-family:inherit;font-size:10pt;">11,300</font><font style="font-family:inherit;font-size:10pt;"> pending cases or claims were filed or estimated to be filed involving products manufactured by Covidien&#8217;s subsidiaries. See "Accrued Certain Litigation Charges" within Note 1 for additional discussion.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Patent Litigation</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;text-decoration:underline;">Ethicon</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On March 28, 2013, the federal court ruled in favor of Covidien in a patent infringement suit against Ethicon Endo-Surgery, Inc. (Ethicon), a Johnson &amp; Johnson company, relating to Ethicon&#8217;s Harmonic</font><font style="font-family:inherit;font-size:7pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> line of ultrasonic surgical products. The federal court awarded Covidien </font><font style="font-family:inherit;font-size:10pt;">$177 million</font><font style="font-family:inherit;font-size:10pt;"> in damages upon ruling that several of Covidien&#8217;s patents were valid, enforceable and infringed by Ethicon. Ethicon appealed the decision. On December 4, 2014, the U.S. Court of Appeals for the Federal Circuit reversed the </font><font style="font-family:inherit;font-size:10pt;">$177 million</font><font style="font-family:inherit;font-size:10pt;"> judgment against Ethicon and ruled that the infringed patent claims were invalid. On June 24, 2014, Covidien filed a lawsuit in the U.S. District Court for the District of Connecticut against Ethicon alleging that Ethicon&#8217;s ultrasonic surgical product, the Harmonic ACE</font><font style="font-family:inherit;font-size:7pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">+7, infringes three of the Company&#8217;s patents. Covidien asked the court to enjoin Ethicon from continuing to make and sell the Harmonic ACE</font><font style="font-family:inherit;font-size:7pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">+7 device and to grant damages for the patent infringement. On October 17, 2014, the district court granted a preliminary injunction against Ethicon, which prevents Ethicon from making and selling the Harmonic ACE</font><font style="font-family:inherit;font-size:7pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">+7 device. Ethicon obtained a temporary stay and appealed this preliminary injunction ruling. On March 25, 2015, the U.S. Court of Appeals for the Federal Circuit reversed the preliminary injunction entered against the Harmonic ACE</font><font style="font-family:inherit;font-size:7pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">+7 and remanded for further proceedings. On May 8, 2015, pursuant to a stipulation of the parties, the U.S. District Court for the District of Connecticut dismissed that case involving the Harmonic ACE</font><font style="font-family:inherit;font-size:7pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">+7. </font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Ethicon Endo-Surgery, Inc., et al. v. Covidien, Inc., et al</font><font style="font-family:inherit;font-size:10pt;">. is a patent infringement action filed on December 14, 2011 in the United States District Court for the Southern District of Ohio, Western Division. The complaint alleges that Covidien&#8217;s Sonicision product infringes several of Ethicon&#8217;s design and utility patents. Ethicon is seeking monetary damages and injunctive relief. On January 22, 2014, the district court entered summary judgment in Covidien&#8217;s favor, ruling that Covidien does not infringe any of the seven Ethicon patents in dispute and declaring five of Ethicon&#8217;s patents invalid. Ethicon has appealed the district court&#8217;s decision. Oral argument before the U.S. Court of Appeals for the Federal Circuit was held March 6, 2015. </font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company has not recorded an expense related to damages in connection with the patent litigation matters because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company cannot reasonably estimate the range of loss, if any, that may result from these matters.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Shareholder Related Matters</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;text-decoration:underline;">INFUSE</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On March 12, 2012, Charlotte Kokocinski filed a shareholder derivative action against both Medtronic, Inc. and certain of its current and former officers and members of its Board of Directors in the U.S. District Court for the District of Minnesota, setting forth certain allegations, including a claim that defendants violated various purported duties in connection with the INFUSE bone graft product and otherwise. On March 25, 2013, the Court dismissed the case without prejudice. On March 30, 2015, the Court granted defendants&#8217; motion to dismiss the Amended Complaint, dismissing the case with prejudice. </font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2012, Daniel Himmel and the Saratoga Advantage Trust commenced two other separate shareholder derivative actions in Hennepin County, Minnesota, District Court against the same defendants, making allegations similar to those in the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Kokocinski</font><font style="font-family:inherit;font-size:10pt;"> case. On July 1, 2014, Road Carriers Local 707 Welfare &amp; Pension Funds filed a shareholder derivative action in Hennepin County, Minnesota, District Court against the same defendants making allegations similar to those in the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Kokocinski, Himmel,</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Saratoga Advantage Trust</font><font style="font-family:inherit;font-size:10pt;"> cases. On July 24, 2014, Anne Shirley Cutler filed a shareholder derivative action in Hennepin County, Minnesota, District Court against certain of the same defendants making allegations similar to those in the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Kokocinski, Himmel,</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Saratoga Advantage Trust</font><font style="font-family:inherit;font-size:10pt;"> cases as well as allegations that defendants violated purported duties in connection with the Synchromed pain pump system. On May 26, 2015, the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Himmel</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Saratoga Advantage Trust</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Road Carriers Local 707</font><font style="font-family:inherit;font-size:10pt;">, and </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Cutler</font><font style="font-family:inherit;font-size:10pt;"> plaintiffs filed Voluntary Stipulations of Dismissal with Prejudice or statements of non-opposition to dismissal of all INFUSE-related claims and allegations. On June 4, 2015, the Court preliminarily approved the INFUSE-related dismissals with prejudice subject to shareholder notice and an opportunity to intervene. On June 9, 2015, the Company provided notice of the Court's order in a Form 8-K filing.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On September 26, 2014, Richard Hockstein filed an INFUSE-related shareholder derivative action against both Medtronic, Inc. and certain of its current and former officers and members of its Board of Directors in the United States District Court for the District of Minnesota making allegations similar to those in the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Kokocinski </font><font style="font-family:inherit;font-size:10pt;">case. West Virginia Pipe Trades and Phil Pace, on June 27, 2013 and July 3, 2013, respectively, filed putative class action complaints against Medtronic, Inc. and certain of its officers in the U.S. District Court for the District of Minnesota, alleging that the defendants made false and misleading public statements regarding the INFUSE Bone Graft product during the period of December 8, 2010 through August 3, 2011. </font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Shareholder Related Matters Resulting from the Covidien Acquisition</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On July 2, 2014, Lewis Merenstein filed a putative shareholder class action in Hennepin County, Minnesota, District Court seeking to enjoin the then-potential acquisition of Covidien. The lawsuit named Medtronic, Inc., Covidien, and each member of the Medtronic, Inc. board at the time as defendants, and alleged that the directors breached their fiduciary duties to shareholders with regard to the then-potential acquisition. On August 21, 2014, Kenneth Steiner filed a putative shareholder class action in Hennepin County, Minnesota, District Court, also seeking an injunction to prevent the potential Covidien acquisition. In September of 2014, the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Merenstei</font><font style="font-family:inherit;font-size:10pt;">n and </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Steiner</font><font style="font-family:inherit;font-size:10pt;"> matters were consolidated and in December of 2014, the plaintiffs filed a preliminary injunction motion seeking to enjoin the Covidien transaction. On December 30, 2014, a hearing was held on plaintiffs&#8217; motion for preliminary injunction and on defendants&#8217; motion to dismiss. On January 2, 2015, the Court denied the plaintiffs&#8217; motion for preliminary injunction and on January 5, 2015 issued its opinion. On March 20, 2015, the Court issued its order and opinion granting Medtronic&#8217;s motion to dismiss the case. In May of 2015, the plaintiffs filed an appeal with the Minnesota State Court of Appeals.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In connection with the then-potential acquisition of Covidien, on September 19, 2014, William A. Houston filed a putative shareholder class action in the United States District Court for the District of Minnesota and on October 3, 2014, Marilyn Clark filed a complaint in the United States District Court for the District of Minnesota that is nearly identical to the Houston complaint. These actions named as defendants certain members of Medtronic, Inc.&#8217;s board of directors at the time and certain of Medtronic, Inc.&#8217;s officers, and also named Medtronic, Inc. as a nominal defendant. The </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Houston</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Clark</font><font style="font-family:inherit;font-size:10pt;"> complaints asserted various causes of action under Minnesota law, including that the individual defendants allegedly breached fiduciary duties in providing for excise tax reimbursements to certain individuals who were and/or are directors and executive officers of Medtronic, Inc. in connection with the then-potential acquisition of Covidien. In October of 2014, the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Houston</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Clark</font><font style="font-family:inherit;font-size:10pt;"> matters were consolidated and the plaintiffs filed a preliminary injunction motion seeking to enjoin the Company from the payment of the excise tax reimbursements. On December 16, 2014, the Court heard the preliminary injunction motion and on December 22, 2014, the Court denied the preliminary injunction motion. On January 6, 2015, the Company consented to plaintiffs&#8217; request to voluntarily dismiss the matter without prejudice. On January 7, 2015, the Court entered its order of dismissal, bringing these matters to a conclusion.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Putative shareholder class action complaints have been filed in the United States District Court for the District of Massachusetts by purported shareholders of Covidien under the captions&#160;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Taxman v. Covidien plc, et al</font><font style="font-family:inherit;font-size:10pt;">.,&#160;14-cv-12949,&#160;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Lipovich&#160;v.&#160;Covidien plc, et al</font><font style="font-family:inherit;font-size:10pt;">.,&#160;14-cv-13308 and&#160;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Rosenfeld Family Foundation v. Covidien plc, et al</font><font style="font-family:inherit;font-size:10pt;">.,&#160;14-cv-13490. On October&#160;20, 2014, the plaintiff in the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Rosenfeld</font><font style="font-family:inherit;font-size:10pt;">&#160;action and another purported shareholder of Covidien filed a motion seeking to consolidate the&#160;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Taxman,&#160;Lipovich</font><font style="font-family:inherit;font-size:10pt;">&#160;and&#160;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Rosenfeld</font><font style="font-family:inherit;font-size:10pt;">&#160;actions, and on November&#160;14, 2014, the United States District Court for the District of Massachusetts granted that motion consolidating the actions (the Consolidated Action). On December 23, 2014, the defendants reached an agreement in principle with plaintiffs in the Consolidated Action, and that agreement is reflected in a memorandum of understanding. In connection with the settlement contemplated by the memorandum of understanding, Covidien agreed to make certain additional disclosures related to the Transactions, which are contained in Covidien&#8217;s Report on Form 8-K filed on December 23, 2014. The memorandum of understanding contemplates that the parties will enter into a stipulation of settlement.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">A stipulation of settlement was filed with the court on May 15, 2015, and a hearing will be scheduled at which the United States District Court for the District of Massachusetts will consider the fairness, reasonableness, and adequacy of the settlement, including attorneys' fees and expenses that will be paid to plaintiffs' counsel. If the settlement is finally approved by the court, it will resolve and release all claims in all actions that were or could have been brought by Covidien shareholders challenging any aspect of the Transactions. There can be no assurance that United States District Court for the District of Massachusetts will approve the settlement. In such event, the proposed settlement as contemplated by the memorandum of understanding may be terminated.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company has not recorded an expense related to damages in connection with the shareholder related matters because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company cannot reasonably estimate the range of loss, if any, that may result from these matters.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Environmental Proceedings</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Covidien is involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. These projects relate to a variety of activities, including removal of solvents, metals and other hazardous substances from soil and groundwater. The ultimate cost of site cleanup and timing of future cash flows is difficult to predict given uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods. </font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Covidien is a successor to a company which owned and operated a chemical manufacturing facility in Orrington, Maine from 1967 until 1982, and is responsible for the costs of completing an environmental site investigation as required by the Maine Department of Environmental Protection (MDEP). MDEP served a compliance order on Mallinckrodt LLC and United States Surgical Corporation in December 2008. The compliance order included a directive to remove a significant volume of soils at the site. On December&#160;19, 2008, Covidien filed an appeal with the Maine Board of Environmental Protection (Maine Board) to challenge the terms of the compliance order. A hearing before the Maine Board began on January&#160;25, 2010 and concluded on February&#160;4, 2010. On August&#160;19, 2010, the Maine Board modified the MDEP order and issued a final order requiring removal of two landfills, capping of the remaining three landfills, installation of a groundwater extraction system and long-term monitoring of the site and the three remaining landfills. </font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On April 3, 2014, the Maine Supreme Judicial Court affirmed the Maine Board&#8217;s compliance order. Covidien has proceeded with implementation of the investigation and remediation at the site in accordance with the MDEP order as modified by the Maine Board order. See "Accrued Certain Litigation Charges" within Note 1 for additional discussion.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Covidien has also been involved in a lawsuit filed in the U.S. District Court for the District of Maine by the Natural Resources Defense Council and the Maine People&#8217;s Alliance. Plaintiffs sought an injunction requiring Covidien to conduct extensive studies of mercury contamination of the Penobscot River and Bay and options for remediating such contamination, and to perform appropriate remedial activities, if necessary. </font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On July&#160;29, 2002, following a March 2002 trial, the District Court entered an opinion and order which held that conditions in the Penobscot River and Bay may pose an imminent and substantial endangerment and that Covidien was liable for the cost of performing a study of the river and bay. The District Court subsequently appointed an independent study panel to oversee the study and ordered Covidien to pay costs associated with the study. A report issued by the study panel contains recommendations for a variety of potential remedial options which could be implemented individually or in a variety of combinations, and includes preliminary cost estimates for the potential remedial options, which the report describes as &#8220;very rough estimates of cost,&#8221; ranging from </font><font style="font-family:inherit;font-size:10pt;">$25 million</font><font style="font-family:inherit;font-size:10pt;"> to </font><font style="font-family:inherit;font-size:10pt;">$235 million</font><font style="font-family:inherit;font-size:10pt;">. The report indicates that these costs are subject to uncertainties, and that before any remedial option is implemented, further engineering studies and engineering design work are necessary to determine the feasibility of the proposed remedial options. In June of 2014, a trial was held to determine if remediation was necessary and feasible, and, at a post-trial hearing on June 18, 2015, the Court indicated that further engineering study and engineering design work is appropriate to determine the nature and extent of remediation in the Penobscot River and Bay. See "Accrued Certain Litigation Charges" within Note 1 for additional discussion.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Other Matters</font><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">One of Covidien&#8217;s subsidiaries, ev3 Inc., (ev3) acquired Appriva Medical, Inc. in 2002.&#160;The acquisition agreement relating to ev3&#8217;s acquisition of Appriva Medical contained four contingent milestone payments totaling </font><font style="font-family:inherit;font-size:10pt;">$175 million</font><font style="font-family:inherit;font-size:10pt;">. ev3 determined that the milestones were not achieved by the applicable dates and that none of the milestones were payable. On April&#160;7, 2009, Michael Lesh and Erik Van Der Burg, acting jointly as the Shareholder Representatives for the former shareholders of Appriva Medical, filed a motion to amend their previously dismissed complaints in Superior Court of the State of Delaware. The plaintiffs asserted several claims, including breach of contract, fraudulent inducement and violation of California securities law. On May 1, 2013, the jury returned a verdict finding that ev3 breached the merger agreement and awarded </font><font style="font-family:inherit;font-size:10pt;">$175 million</font><font style="font-family:inherit;font-size:10pt;"> in damages plus interest to the plaintiffs.&#160;On September 30, 2014, the Delaware Supreme Court reversed the jury&#8217;s verdict and remanded the case for a new trial. See "Accrued Certain Litigation Charges" within Note 1 for additional discussion.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Medtronic has received subpoenas or document requests from the Attorneys General in Massachusetts, California, Oregon, Illinois, and Washington seeking information regarding sales, marketing, clinical, and other information relating to the INFUSE bone graft product. The Company is fully cooperating with these requests.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On December 3, 2013, Medtronic, Inc. received a subpoena for records from the U.S. Attorney&#8217;s Office for the District of Minnesota requesting information relating to Medtronic, Inc&#8217;s compliance with the Trade Agreements Act. In April 2015, the Company settled this matter with no admission of liability and recorded a certain litigation charge of </font><font style="font-family:inherit;font-size:10pt;">$4 million</font><font style="font-family:inherit;font-size:10pt;"> in fiscal year 2015.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On May 2, 2011, the U.S. Attorney&#8217;s Office for the District of Massachusetts issued a subpoena to ev3, a subsidiary of the Company, requesting production of documents relating to sales and marketing and other issues in connection with several neurovascular products. The matters under investigation relate to activities prior to Covidien's acquisition of ev3 in 2010. ev3 complied as required with the subpoena and cooperated with the investigation. The Company is fully cooperating with these requests.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On September 2, 2014, the U.S. Department of Health and Human Services, Office of Inspector General and the U.S. Attorney&#8217;s Office for the Northern District of California, issued a subpoena requesting production of documents relating to sales and marketing practices associated with certain of ev3&#8217;s peripheral vascular products. The Company is fully cooperating with these requests.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Except as noted above, the Company has not recorded an expense related to damages in connection with the issued subpoenas because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company cannot reasonably estimate the range of loss, if any, that may result from these matters.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Income Taxes</font><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2009, the U.S. Internal Revenue Service (IRS) issued its audit report on Medtronic, Inc. for fiscal years 2005 and 2006. Medtronic, Inc. reached agreement with the IRS on some, but not all matters related to these fiscal years. On December 23, 2010, the IRS issued a statutory notice of deficiency with respect to the remaining issues. Medtronic, Inc. filed a Petition with the U.S. Tax Court on March 21, 2011 objecting to the deficiency. During October and November 2012, Medtronic, Inc. reached resolution with the IRS on various matters, including the deductibility of a settlement payment. Medtronic, Inc. and the IRS agreed to hold one issue, the calculation of amounts eligible for the one-time repatriation holiday, because such specific issue was being addressed by other taxpayers in litigation with the IRS. The remaining unresolved issue for fiscal years 2005 and 2006 relates to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico, which is one of the Company's key manufacturing sites. The Tax Court proceeding with respect to this issue began on February 3, 2015 and ended on March 12, 2015. The Company expects a ruling from the Tax Court sometime during fiscal year 2017.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In October 2011, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2007 and 2008. Medtronic, Inc. reached agreement with the IRS on some but not all matters related to these fiscal years. The significant issues that remain unresolved relate to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico and proposed adjustments associated with the tax effects of the Company's acquisition of Kyphon Inc. (Kyphon). During the fourth quarter of fiscal year 2015, a tentative settlement was reached with the IRS for the Kyphon acquisition matters. As a result, the Company recorded a </font><font style="font-family:inherit;font-size:10pt;">$329 million</font><font style="font-family:inherit;font-size:10pt;"> certain tax adjustment, including interest, during fiscal year 2015.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2014, the IRS issued its audit report on Medtronic, Inc. for fiscal years 2009, 2010, and 2011. Medtronic, Inc. reached agreement with the IRS on some but not all matters related to these fiscal years. The significant issues that remain unresolved relate to the allocation of income between Medtronic, Inc. and its wholly-owned subsidiary operating in Puerto Rico, and proposed adjustments associated with the tax effects of its acquisition structures for Ardian, CoreValve, Inc., and Ablation Frontiers, Inc. The Company disagrees with the IRS and will attempt to resolve these matters at the IRS Appellate level, however, it will proceed through litigation, if necessary. The IRS continues to audit Medtronic, Inc.'s U.S. federal income tax returns for the fiscal years 2012 through 2014.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Covidien and the IRS have concluded and reached agreement on its audit of Covidien&#8217;s U.S. federal income tax returns for the 2008 and 2009 tax years. The IRS continues to audit Covidien&#8217;s U.S. federal income tax returns for the years 2010 through 2012. Open periods for examination also include certain periods during which Covidien was a subsidiary of Tyco International. The resolution of these matters is subject to the conditions set forth in the Tyco tax sharing agreement. Tyco International has the right to administer, control and settle all U.S. income tax audits for periods prior to the 2007 separation.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The IRS has concluded its field examination of certain of Tyco International&#8217;s U.S. federal income tax returns for the years 1997 through 2000 and proposed tax adjustments, several of which also affect Covidien&#8217;s income tax returns for certain years after 2000. Tyco International has appealed certain of the tax adjustments proposed by the IRS and has resolved all but one of the matters associated with the proposed tax adjustments. With respect to the outstanding issue that remains in dispute, on June&#160;20, 2013, Tyco International advised Covidien that it had received Notices of Deficiency from the IRS asserting that several of Tyco International&#8217;s former U.S. subsidiaries owe additional taxes of </font><font style="font-family:inherit;font-size:10pt;">$914 million</font><font style="font-family:inherit;font-size:10pt;"> plus penalties of </font><font style="font-family:inherit;font-size:10pt;">$154 million</font><font style="font-family:inherit;font-size:10pt;"> based on audits of the 1997 through 2000 tax years of Tyco International and its subsidiaries as they existed at that time. These amounts exclude interest and do not reflect the impact on subsequent periods if the IRS position is ultimately proved correct. The IRS has asserted in the Notices of Deficiency that substantially all of Tyco International&#8217;s intercompany debt originating during the years 1997 through 2000 should not be treated as debt for U.S. federal income tax purposes, and has disallowed interest deductions related to the intercompany debt and certain tax attribute adjustments recognized on Tyco International&#8217;s U.S. income tax returns totaling approximately </font><font style="font-family:inherit;font-size:10pt;">$3.0 billion</font><font style="font-family:inherit;font-size:10pt;">. The Company disagrees with the IRS&#8217;s proposed adjustments. On July 22, 2013, Tyco International filed a petition with the U.S. Tax Court contesting the IRS assessment. The Company believes there are meritorious defenses for the tax filings in question, that the IRS positions with regard to these matters are inconsistent with the applicable tax laws and existing Treasury regulations, and that the previously reported taxes for the years in question are appropriate.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">No payments with respect to these matters or any additional matters that may be raised by the U.S. Tax Court would be required until the dispute is definitively resolved, which could take several years. The timing and outcome of such litigation is highly uncertain and could have a material adverse effect on the Company&#8217;s consolidated financial statements. In particular, if the IRS is successful in asserting its claim, it would likely assert that approximately </font><font style="font-family:inherit;font-size:10pt;">$6.6 billion</font><font style="font-family:inherit;font-size:10pt;"> of interest deductions with respect to Tyco International&#8217;s intercompany debt in subsequent time periods should also be disallowed. </font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Covidien&#8217;s income tax returns for the years 2001 through 2003 remain subject to adjustment by the IRS upon ultimate resolution of the disputed issue involving certain intercompany loans that originated during 1997 through 2000. Covidien and the IRS have effectively settled its audits of tax matters for the years 2004 through 2007.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">See Note 12 for additional discussion of income taxes.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Guarantees</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As a result of the recent acquisition of Covidien, the Company has guarantee commitments and indemnifications with Tyco International, TE Connectivity, and Mallinckrodt plc (Mallinckrodt) which relate to certain contingent tax liabilities. </font></div><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On June&#160;29, 2007, Covidien entered into a tax sharing agreement, under which Covidien shares responsibility for certain of its, Tyco International&#8217;s and TE Connectivity&#8217;s income tax liabilities for periods prior to Covidien&#8217;s 2007 separation from Tyco International (2007 separation). Covidien, Tyco International and TE Connectivity share </font><font style="font-family:inherit;font-size:10pt;">42%</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">27%</font><font style="font-family:inherit;font-size:10pt;">, and </font><font style="font-family:inherit;font-size:10pt;">31%</font><font style="font-family:inherit;font-size:10pt;">, respectively, of U.S. income tax liabilities that arise from adjustments made by tax authorities to Covidien's, Tyco International&#8217;s and TE Connectivity&#8217;s U.S. income tax returns, certain income tax liabilities arising from adjustments made by tax authorities to intercompany transactions or similar adjustments, and certain taxes attributable to internal transactions undertaken in anticipation of the 2007 separation. If Tyco International and TE Connectivity default on their obligations to Covidien under the Tyco tax sharing agreement, the Company would be liable for the entire amount of these liabilities. All costs and expenses associated with the management of these tax liabilities are being shared equally among the parties.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In connection with the 2007 separation, all tax liabilities associated with Covidien business became Covidien&#8217;s tax liabilities. Following Covidien&#8217;s spin-off of its Pharmaceuticals business to Covidien shareholders through a distribution of all the outstanding ordinary shares of Mallinkrodt (2013 separation), Mallinckrodt became the primary obligor to the taxing authorities for the tax liabilities attributable to its subsidiaries, a significant portion of which relate to periods prior to the 2007 separation. However, Covidien remains the sole party subject to the tax sharing agreement with Tyco International and TE Connectivity. Accordingly, Mallinckrodt does not share in Covidien&#8217;s liability to Tyco International and TE Connectivity, nor in the receivable that Covidien has from Tyco International and TE Connectivity.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">If any party to the Tyco tax sharing agreement were to default in its obligation to another party to pay its share of the distribution taxes that arise as a result of no party&#8217;s fault, each non-defaulting party would be required to pay, equally with any other non-defaulting party, the amounts in default. In addition, if another party to the Tyco tax sharing agreement that is responsible for all or a portion of an income tax liability were to default in its payment of such liability to a taxing authority, the Company could be legally liable under applicable tax law for such liabilities and be required to make additional tax payments. Accordingly, under certain circumstances, the Company may be obligated to pay amounts in excess of the Company&#8217;s agreed upon share of Covidien's, Tyco International&#8217;s and TE Connectivity&#8217;s tax liabilities.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company has used available information to develop its best estimates for certain assets and liabilities related to periods prior to the 2007 separation, including amounts subject to or impacted by the provisions of the Tyco tax sharing agreement. The actual amounts that the Company may be required to ultimately accrue or pay under the Tyco tax sharing agreement, however, could vary depending upon the outcome of the unresolved tax matters. Final determination of the balances will be made in subsequent periods, primarily related to certain pre-2007 separation tax liabilities and tax years open for examination. These balances will also be impacted by the filing of final or amended income tax returns in certain jurisdictions where those returns include a combination of Tyco International, Covidien and/or TE Connectivity legal entities for periods prior to the 2007 separation. </font></div><div style="line-height:120%;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In conjunction with the 2013 separation, Mallinckrodt assumed the tax liabilities that are attributable to its subsidiaries, and Covidien indemnified Mallinckrodt to the extent that such tax liabilities arising from periods prior to 2013 exceed </font><font style="font-family:inherit;font-size:10pt;">$200 million</font><font style="font-family:inherit;font-size:10pt;">, net of certain tax benefits realized. In addition, in connection with the 2013 separation, Covidien entered into certain other guarantee commitments and indemnifications with Mallinckrodt.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">See</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> "</font><font style="font-family:inherit;font-size:10pt;">Tax Guarantees" within Note 1 for additional discussion.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Except as described above or certain income tax related matters, the Company has not recorded an expense related to losses in connection with these matters because any potential loss is not currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company cannot reasonably estimate the range of loss, if any, that may result from these matters.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In the normal course of business, the Company and/or its affiliates periodically enter into agreements that require one or more of them to indemnify customers or suppliers for specific risks, such as claims for injury or property damage arising out of the Company or its affiliates&#8217; products or the negligence of any of their personnel or claims alleging that any of their products infringe third-party patents or other intellectual property. The Company&#8217;s maximum exposure under these indemnification provisions cannot be estimated, and the Company has not accrued any liabilities within the consolidated financial statements. Historically, the Company has not experienced significant losses on these types of indemnifications.</font></div></div>
CY2015 us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Nature of Operations </font><font style="font-family:inherit;font-size:10pt;">Medtronic plc (Medtronic plc, Medtronic or the Company), the successor registrant to Medtronic, Inc., a Minnesota corporation, was incorporated in Ireland on June 12, 2014 as a private limited company, and was re-registered effective </font><font style="font-family:inherit;font-size:10pt;">January 26, 2015</font><font style="font-family:inherit;font-size:10pt;"> as a public limited company. The Company was established for the purpose of facilitating the acquisition of Covidien plc, a public limited company organized under the laws of Ireland (Covidien), which closed on </font><font style="font-family:inherit;font-size:10pt;">January 26, 2015</font><font style="font-family:inherit;font-size:10pt;"> (Acquisition Date). Upon completion of this transaction, Medtronic replaced Medtronic, Inc., as the ultimate parent company&#160;of the Medtronic group. This part of the transaction was accounted for in the consolidated financial statements as a merger between entities under common control; accordingly, the historical consolidated financial statements of Medtronic, Inc. for periods prior to this transaction are considered to be the historical financial statements of the Company.</font></div></div>

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