Medtronic 2008 Annual Report Download - page 94

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Selected Financial Data
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$200
April 2003 April 2004 April 2005 April 2006 April 2007 April 2008
Medtronic, Inc.
S&P 500 Index
S&P 500 Health Care Equipment Index
The graph to the right compares the cumulative
total shareholder return on Medtronic’s common
stock with the cumulative total shareholder return
on the Standard & Poor’s 500 Composite Index and
the Standard & Poor’s 500 Health Care Equipment
Index for the last five fiscal years. The graph assumes
that $100 was invested at market close on April 25,
2003 in Medtronic’s common stock, the S&P 500
Index and the S&P 500 Health Care Equipment
Index and that all dividends were reinvested.
Comparison of Five-Year Cumulative Total Return Among Medtronic, S&P 500 Index and S&P 500 Health Care Equipment Index
Fiscal Year
(in millions, except per share data) 2008 2007 2006 2005 2004(2)
Operating Results for the Fiscal Year:
Net sales $ 13,515 $ 12,299 $ 11,292 $ 10,055 $ 9,087
Cost of products sold 3,446 3,168 2,815 2,446 2,253
Gross margin percentage 74.5% 74.2% 75.1% 75.7% 75.2%
Research and development expense $ 1,275 $ 1,239 $ 1,113 $ 951 $ 852
Selling, general and administrative expense 4,707 4,153 3,659 3,214 2,801
Special charges 78 98 100 — (5)
Restructuring charges 41 28 — — —
Certain litigation charges 366 40 — 654 —
Purchased in-process research and development charges 390 — 364 — 41
Other expense, net 436 212 167 291 351
Interest income, net (109) (154) (87) (45) (3)
Earnings before income taxes 2,885 3,515 3,161 2,544 2,797
Provision for income taxes 654 713 614 740 838
Net earnings
$ 2,231
$ 2,802
$ 2,547
$ 1,804
$ 1,959
Per Share of Common Stock:
Basic earnings $ 1.97 $ 2.44 $ 2.11 $ 1.49 $ 1.61
Diluted earnings 1.95 2.41 2.09 1.48 1.60
Cash dividends declared 0.50 0.44 0.39 0.34 0.29
Financial Position at Fiscal Year-end:
Working capital(1) $ 3,787 $ 5,355 $ 5,971 $ 4,042 $ 1,072
Current ratio(1) 2.1:1.0 3.1:1.0 2.4:1.0 2.2:1.0 1.3:1.0
Total assets $ 22,198 $ 19,512 $ 19,665 $ 16,617 $ 14,111
Long-term debt(1) 5,802 5,578 5,486 1,973 1.1
Shareholders’ equity 11,536 10,977 9,383 10,450 9,077
Additional Information:
Full-time employees at year-end 36,484 34,554 32,280 29,835 27,868
Full-time equivalent employees at year-end 40,351 37,800 35,733 33,067 30,900
(1) In fiscal year 2002, $2,000 of contingent convertible debentures were issued to fund acquisitions. These contingent convertible debentures include repayment provisions that give holders
the option to require the Company to repurchase the debentures (referred to as a put option) in specific periods. Twelve months prior to the put option for the debentures becoming
exercisable, the remaining balance of the debentures will be classified as short-term borrowings on the consolidated balance sheets. At each balance sheet date without a put option
within the subsequent four quarters, the remaining balance will be classified as long-term debt on the consolidated balance sheets. Therefore, working capital and the current ratio are
impacted by the periodic reclassification of these contingent convertible debentures. In fiscal years 2008, 2006 and 2004, there were $94, $1,971 and $1,974, respectively, of debentures
classified in short-term borrowings. See Note 7 to the consolidated financial statements.
(2) Fiscal year 2004 consisted of 53 weeks, as compared to 52 weeks in all other fiscal years disclosed above. See Note 1 to the consolidated financial statements.
90 Medtronic, Inc.