Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Medtronic PLC, income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019
U.S.	756)	1,303)	467)	287)	151)	579)
International	905)	530)	599)	439)	375)	406)
Current tax expense	1,661)	1,833)	1,066)	726)	526)	985)
U.S.	(435)	(336)	(402)	(626)	(138)	(310)
International	(93)	83)	(209)	165)	(1,139)	(128)
Deferred tax benefit	(528)	(253)	(611)	(461)	(1,277)	(438)
Income tax provision (benefit)	1,133)	1,580)	455)	265)	(751)	547)

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

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Item	Description	The company
Current tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Medtronic PLC current tax expense increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Deferred tax benefit	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Medtronic PLC deferred tax benefit increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
Income tax provision (benefit)	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Medtronic PLC income tax provision (benefit) increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Medtronic PLC, effective income tax rate (EITR) reconciliation

	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019
U.S. federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
U.S. state taxes, net of federal tax benefit	0.20%	0.10%	0.20%	-1.10%	0.50%	0.90%
Research and development credit	-2.20%	-1.90%	-1.30%	-2.30%	-2.10%	-1.20%
Puerto Rico excise tax	0.00%	-1.00%	-1.10%	-2.00%	-1.50%	-1.60%
International	-6.70%	-8.20%	-11.20%	-12.60%	-10.00%	-10.70%
Stock based compensation	0.30%	0.20%	-0.80%	-0.80%	-1.50%	-1.00%
Uncertain tax positions and interest	1.30%	0.70%	0.50%	0.90%	1.30%	0.90%
Base erosion anti-abuse tax	0.30%	0.00%	0.90%	0.50%	2.60%	0.10%
Foreign derived intangible income benefit	-1.70%	-1.20%	-1.00%	-1.90%	-1.20%	-0.60%
Divestiture-related	0.00%	0.00%	0.00%	0.00%	0.00%	-0.40%
Certain tax adjustments	6.20%	17.00%	-0.90%	-1.00%	-30.80%	-0.60%
Legal entity restructuring	0.00%	0.00%	0.00%	1.80%	0.00%	0.00%
U.S. tax on foreign earnings	3.50%	2.50%	2.20%	3.40%	2.80%	4.00%
Other, net	1.20%	0.30%	-0.20%	0.90%	0.40%	-0.50%
Increase (decrease) in tax rate	2.40%	8.50%	-12.70%	-14.20%	-39.50%	-10.70%
Effective tax rate, before U.S. Tax Reform	23.40%	29.50%	8.30%	6.80%	-18.50%	10.30%
U.S. Tax Reform	0.00%	0.00%	0.00%	0.00%	0.00%	0.20%
Effective tax rate	23.40%	29.50%	8.30%	6.80%	-18.50%	10.50%

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

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Item	Description	The company
Effective tax rate, before U.S. Tax Reform	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Medtronic PLC effective tax rate, before U.S. Tax Reform increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Medtronic PLC, components of deferred tax assets and liabilities

US$ in millions

	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019
Net operating loss, capital loss, and credit carryforwards	11,775)	10,803)	5,982)	6,114)	6,432)	6,574)
Intangible assets	2,858)	2,259)	2,334)	—)	—)	—)
Capitalization of research and development	1,255)	971)	597)	408)	—)	—)
Other accrued liabilities	404)	458)	483)	442)	390)	389)
Accrued compensation	374)	312)	332)	411)	285)	315)
Pension and post-retirement benefits	—)	66)	66)	234)	350)	300)
Stock-based compensation	147)	141)	146)	132)	136)	162)
Inventory	138)	135)	146)	164)	191)	194)
Deferred revenue	172)	37)	—)	—)	—)	—)
Lease obligations	157)	150)	92)	106)	101)	—)
Federal and state benefit on uncertain tax positions	21)	79)	60)	55)	96)	83)
Interest limitation	608)	377)	386)	352)	236)	111)
Unrealized loss on available-for-sale securities and derivative financial instruments	13)	39)	—)	—)	—)	17)
Other	355)	240)	374)	336)	338)	339)
Gross deferred tax assets	18,277)	16,067)	10,998)	8,754)	8,555)	8,484)
Valuation allowance	(13,271)	(11,311)	(6,583)	(5,822)	(5,482)	(6,300)
Deferred tax assets	5,006)	4,756)	4,415)	2,932)	3,073)	2,184)
Intangible assets	(1,406)	(1,551)	(1,488)	(320)	(1,017)	(1,614)
Realized loss on derivative financial instruments	(70)	(70)	(66)	(75)	(65)	(70)
Right of use leases	(149)	(147)	(89)	(102)	(97)	—)
Unrealized gain on available-for-sale securities and derivative financial instruments	—)	—)	—)	(16)	(12)	—)
Accumulated depreciation	(110)	(109)	(121)	(151)	(87)	(38)
Outside basis difference of subsidiaries	(90)	(119)	(129)	(101)	(77)	(119)
Pension and post-retirement benefits	(45)	—)	—)	—)	—)	—)
Other	(90)	(80)	(70)	(81)	(110)	(152)
Deferred tax liabilities	(1,960)	(2,076)	(1,963)	(846)	(1,465)	(1,993)
Net deferred tax assets (liabilities)	3,046)	2,680)	2,452)	2,086)	1,608)	191)
Prepaid income taxes	520)	480)	474)	458)	449)	363)
Income tax receivables	406)	494)	358)	353)	381)	335)
Tax assets (liabilities), net	3,972)	3,654)	3,284)	2,897)	2,438)	889)

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Medtronic PLC gross deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Medtronic PLC deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Medtronic PLC net deferred tax assets (liabilities) increased from 2022 to 2023 and from 2023 to 2024.

Medtronic PLC, deferred tax assets and liabilities, classification

US$ in millions

	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019
Other current assets	830)	885)	765)	756)	780)	648)
Tax assets	3,657)	3,477)	3,403)	3,169)	2,832)	1,519)
Less: Prepaid income taxes	(520)	(480)	(474)	(458)	(449)	(363)
Less: Income tax receivables	(406)	(494)	(358)	(353)	(381)	(335)
Deferred tax assets	3,561)	3,388)	3,336)	3,114)	2,782)	1,469)
Deferred tax liabilities	515)	708)	884)	1,028)	1,174)	1,278)

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Medtronic PLC deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Medtronic PLC deferred tax liabilities decreased from 2022 to 2023 and from 2023 to 2024.

Medtronic PLC, adjustments to financial statements

US$ in millions

	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019
Adjustment to Total Assets
Total assets (as reported)	89,981)	90,948)	90,981)	93,083)	90,689)	89,694)
Less: Noncurrent deferred tax assets, net	3,561)	3,388)	3,336)	3,114)	2,782)	1,469)
Total assets (adjusted)	86,420)	87,560)	87,645)	89,969)	87,907)	88,225)
Adjustment to Total Liabilities
Total liabilities (as reported)	39,561)	39,283)	38,260)	41,481)	39,817)	39,482)
Less: Noncurrent deferred tax liabilities, net	515)	708)	884)	1,028)	1,174)	1,278)
Total liabilities (adjusted)	39,046)	38,575)	37,376)	40,453)	38,643)	38,204)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	50,214)	51,483)	52,551)	51,428)	50,737)	50,091)
Less: Net deferred tax assets (liabilities)	3,046)	2,680)	2,452)	2,086)	1,608)	191)
Shareholders’ equity (adjusted)	47,168)	48,803)	50,099)	49,342)	49,129)	49,900)
Adjustment to Net Income Attributable To Medtronic
Net income attributable to Medtronic (as reported)	3,676)	3,758)	5,039)	3,606)	4,789)	4,631)
Add: Deferred income tax expense (benefit)	(528)	(253)	(611)	(461)	(1,277)	(438)
Net income attributable to Medtronic (adjusted)	3,148)	3,505)	4,428)	3,145)	3,512)	4,193)

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

Medtronic PLC, Financial Data: Reported vs. Adjusted

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Medtronic PLC, adjusted financial ratios

	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019
Net Profit Margin
Reported net profit margin	11.36%	12.03%	15.90%	11.97%	16.56%	15.16%
Adjusted net profit margin	9.73%	11.22%	13.97%	10.44%	12.15%	13.72%
Total Asset Turnover
Reported total asset turnover	0.36	0.34	0.35	0.32	0.32	0.34
Adjusted total asset turnover	0.37	0.36	0.36	0.33	0.33	0.35
Financial Leverage
Reported financial leverage	1.79	1.77	1.73	1.81	1.79	1.79
Adjusted financial leverage	1.83	1.79	1.75	1.82	1.79	1.77
Return on Equity (ROE)
Reported ROE	7.32%	7.30%	9.59%	7.01%	9.44%	9.25%
Adjusted ROE	6.67%	7.18%	8.84%	6.37%	7.15%	8.40%
Return on Assets (ROA)
Reported ROA	4.09%	4.13%	5.54%	3.87%	5.28%	5.16%
Adjusted ROA	3.64%	4.00%	5.05%	3.50%	4.00%	4.75%

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Medtronic PLC adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Medtronic PLC adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Medtronic PLC adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Medtronic PLC adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Medtronic PLC adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Medtronic PLC, Financial Ratios: Reported vs. Adjusted

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	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic	3,676)	3,758)	5,039)	3,606)	4,789)	4,631)
Net sales	32,364)	31,227)	31,686)	30,117)	28,913)	30,557)
Profitability Ratio
Net profit margin¹	11.36%	12.03%	15.90%	11.97%	16.56%	15.16%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Medtronic	3,148)	3,505)	4,428)	3,145)	3,512)	4,193)
Net sales	32,364)	31,227)	31,686)	30,117)	28,913)	30,557)
Profitability Ratio
Adjusted net profit margin²	9.73%	11.22%	13.97%	10.44%	12.15%	13.72%

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

2024 Calculations

¹ Net profit margin = 100 × Net income attributable to Medtronic ÷ Net sales
= 100 × 3,676 ÷ 32,364 = 11.36%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Medtronic ÷ Net sales
= 100 × 3,148 ÷ 32,364 = 9.73%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Medtronic PLC adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales	32,364)	31,227)	31,686)	30,117)	28,913)	30,557)
Total assets	89,981)	90,948)	90,981)	93,083)	90,689)	89,694)
Activity Ratio
Total asset turnover¹	0.36	0.34	0.35	0.32	0.32	0.34
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	32,364)	31,227)	31,686)	30,117)	28,913)	30,557)
Adjusted total assets	86,420)	87,560)	87,645)	89,969)	87,907)	88,225)
Activity Ratio
Adjusted total asset turnover²	0.37	0.36	0.36	0.33	0.33	0.35

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

2024 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 32,364 ÷ 89,981 = 0.36

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 32,364 ÷ 86,420 = 0.37

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Medtronic PLC adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	89,981)	90,948)	90,981)	93,083)	90,689)	89,694)
Shareholders’ equity	50,214)	51,483)	52,551)	51,428)	50,737)	50,091)
Solvency Ratio
Financial leverage¹	1.79	1.77	1.73	1.81	1.79	1.79
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	86,420)	87,560)	87,645)	89,969)	87,907)	88,225)
Adjusted shareholders’ equity	47,168)	48,803)	50,099)	49,342)	49,129)	49,900)
Solvency Ratio
Adjusted financial leverage²	1.83	1.79	1.75	1.82	1.79	1.77

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

2024 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 89,981 ÷ 50,214 = 1.79

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 86,420 ÷ 47,168 = 1.83

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Medtronic PLC adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.

	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic	3,676)	3,758)	5,039)	3,606)	4,789)	4,631)
Shareholders’ equity	50,214)	51,483)	52,551)	51,428)	50,737)	50,091)
Profitability Ratio
ROE¹	7.32%	7.30%	9.59%	7.01%	9.44%	9.25%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Medtronic	3,148)	3,505)	4,428)	3,145)	3,512)	4,193)
Adjusted shareholders’ equity	47,168)	48,803)	50,099)	49,342)	49,129)	49,900)
Profitability Ratio
Adjusted ROE²	6.67%	7.18%	8.84%	6.37%	7.15%	8.40%

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

2024 Calculations

¹ ROE = 100 × Net income attributable to Medtronic ÷ Shareholders’ equity
= 100 × 3,676 ÷ 50,214 = 7.32%

² Adjusted ROE = 100 × Adjusted net income attributable to Medtronic ÷ Adjusted shareholders’ equity
= 100 × 3,148 ÷ 47,168 = 6.67%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Medtronic PLC adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Medtronic	3,676)	3,758)	5,039)	3,606)	4,789)	4,631)
Total assets	89,981)	90,948)	90,981)	93,083)	90,689)	89,694)
Profitability Ratio
ROA¹	4.09%	4.13%	5.54%	3.87%	5.28%	5.16%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Medtronic	3,148)	3,505)	4,428)	3,145)	3,512)	4,193)
Adjusted total assets	86,420)	87,560)	87,645)	89,969)	87,907)	88,225)
Profitability Ratio
Adjusted ROA²	3.64%	4.00%	5.05%	3.50%	4.00%	4.75%

Based on: 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26).

2024 Calculations

¹ ROA = 100 × Net income attributable to Medtronic ÷ Total assets
= 100 × 3,676 ÷ 89,981 = 4.09%

² Adjusted ROA = 100 × Adjusted net income attributable to Medtronic ÷ Adjusted total assets
= 100 × 3,148 ÷ 86,420 = 3.64%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Medtronic PLC adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Medtronic PLC (NYSE:MDT)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Medtronic PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Medtronic PLC, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)