Medtronic(US:MDT)2025-02-25 21:17Financial Performance - Net income for the three months ended January 24, 2025, was $1,303 million, a decrease of 2.5% compared to $1,337 million for the same period last year[12]. - Comprehensive income attributable to Medtronic for the nine months ended January 24, 2025, was $4,085 million, up from $3,062 million, representing a 33.4% increase year-over-year[12]. - Net income for the nine months ended January 24, 2025, was $3,630 million, an increase from $3,045 million for the same period in the previous year, representing a growth of 19.2%[19]. - Basic earnings per share for the three months ended January 24, 2025, was $1.01, up from $0.99 for the same period in 2024, showing a 2.0% increase[99]. - The Company reported segment operating profit of $3,167 million for the three months ended January 24, 2025, compared to $3,014 million for the same period in 2024, reflecting a year-over-year increase of 5.1%[128]. Assets and Liabilities - Total current assets increased to $22,513 million as of January 24, 2025, compared to $21,935 million as of April 26, 2024, reflecting a growth of 2.6%[14]. - Current liabilities rose to $11,840 million, up from $10,789 million, indicating an increase of 9.7%[14]. - Long-term debt remained stable at $23,985 million as of January 24, 2025, compared to $23,932 million as of April 26, 2024[14]. - Total assets were reported at $89,973 million as of January 24, 2025, slightly down from $89,981 million as of April 26, 2024[14]. - Cash and cash equivalents decreased to $1,240 million from $1,284 million, a decline of 3.4%[14]. Revenue and Sales - Total net cash provided by operating activities increased to $4,516 million for the nine months ended January 24, 2025, compared to $4,010 million for the same period last year, reflecting a rise of 12.6%[19]. - Reportable segment net sales for the nine months ended January 24, 2025, reached $24,610 million, up from $23,775 million in the prior year, indicating a growth of 3.5%[30]. - Cardiac Rhythm & Heart Failure segment sales increased to $4,659 million for the nine months ended January 24, 2025, compared to $4,408 million in the previous year, marking a growth of 5.7%[30]. - Total net sales for the Company were $8,292 million for the three months ended January 24, 2025, compared to $8,089 million for the same period in 2024, indicating a growth of 2.5%[130]. - The company recognized $251 million of revenue from deferred revenue during the nine months ended January 24, 2025, compared to $274 million in the same period last year[33]. Investments and Securities - The total available-for-sale debt securities fair value as of January 24, 2025, was $6,696 million, with unrealized losses of $134 million[46]. - The Company recognized interest income of $114 million and $364 million for the three and nine months ended January 24, 2025, respectively, compared to $170 million and $429 million for the same periods in the prior year[50]. - The fair value of contingent consideration receivable at January 24, 2025, was $61 million, slightly up from $58 million at April 26, 2024[41]. - The Company had $432 million in after-tax unrealized gains associated with cash flow hedging instruments recorded in accumulated other comprehensive loss as of January 24, 2025[70]. - The total derivatives on the balance sheet amounted to $980 million as of January 24, 2025, with liabilities of $79 million[82]. Costs and Expenses - The Company incurred $154 million in restructuring costs for the nine months ended January 24, 2025, compared to $237 million for the same period in the previous year[43]. - The effective tax rate for the three months ended January 24, 2025, was 15.4%, compared to 9.2% for the same period in the previous year, indicating a significant increase[95]. - The Company recorded a $187 million income tax charge due to a court decision regarding a deemed taxable transfer of intellectual property[94]. - Total stock-based compensation expense for the three months ended January 24, 2025, was $98 million, an increase of 15.3% from $85 million for the same period in 2024[100]. - The income tax on unrealized gains and losses on cash flow hedges was an expense of $51 million for the nine months ended January 24, 2025, compared to $75 million for the same period in 2024[106]. Goodwill and Acquisitions - The acquisition date fair value of net assets acquired during the three months ended January 24, 2025, was $128 million, primarily consisting of $108 million in goodwill and $50 million in IPR&D[36]. - For the fiscal year ended April 26, 2024, the acquisition date fair value of net assets acquired was $335 million, including $131 million in goodwill and $150 million in IPR&D[37]. - Goodwill decreased to $40,819 million as of January 24, 2025, from $40,986 million on April 26, 2024, reflecting a reduction of $167 million[88]. - The goodwill recognized from acquisitions includes $51 million that is tax-deductible, while $80 million is not deductible for tax purposes[37]. - Currency translation and other adjustments led to a decrease in goodwill by $277 million across segments[88]. Litigation and Legal Matters - The company is involved in approximately 8,950 individual lawsuits related to hernia mesh products, with no recorded expense for damages as potential losses are not currently probable[110]. - The Company has 15 lawsuits filed on behalf of 35 individuals related to the Diabetes Pump Retainer Ring litigation as of January 28, 2025, with potential for additional claims from several thousand individuals[111]. - The Company filed an appeal regarding a $106 million verdict against it in patent litigation with Colibri Heart Valve LLC[109]. - The Company has not recorded any expenses related to the antitrust litigation with Applied Medical, as potential losses are not currently probable or reasonably estimable[112]. - As of January 24, 2025, accrued litigation was approximately $0.2 billion, indicating potential future financial impacts[108].