Medtronic 2010 Annual Report Download - page 5

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*Compound Annual Growth Rate
Net Sales
(dollars in billions)
’06 ’07 ’08 ’09
5-year CAGR* 9.5%
0
4
8
12
$16
Research and
Development Expense
(dollars in billions)
’06 ’07 ’08 ’09
5-year CAGR* 8.9%
0
0.3
0.6
0.9
1.2
$1.5
Closing Stock Price
(in dollars)
’06 ’07 ’08 ’09
5-year CAGR* (3.7)%
0
10
20
30
40
50
$60
Excluding special charges, restructuring charges, certain litigation charges, net, IPR&D
and certain acquisition-related costs, non-cash charge to interest expense due to the
change in accounting rules governing convertible debt, and certain tax adjustments
As reported
5-year CAGR* for diluted earnings per share, as reported 13.7%
5-year CAGR* for diluted earnings per share, excluding special charges, restructuring charges,
certain litigation charges, net, IPR&D and certain acquisition-related costs, non-cash charge
to interest expense due to the change in accounting rules governing convertible debt, and
certain tax adjustments 11.6%
Diluted Earnings
Per Share
(in dollars)
’06 ’07 ’08 ’09
0
0.50
1.50
2.00
2.50
3.00
$3.50
’10 ’10 ’10
’10
1.00
Financial H        
Fiscal Year
(dollars in millions, except per share data) 2006 2007 2008 2009 2010
Net sales $ 11,292 $ 12,299 $ 13,515 $ 14,599 $ 15,817
Net earnings 2,519 2,703 2,138 2,070 3,099(2)
Special charges, restructuring charges, certain litigation charges, net, in-process
research and development (IPR&D) and certain acquisition-related costs,
non-cash charge to interest expense due to the change in accounting rules
governing convertible debt, and certain tax adjustments(1) (net of income taxes) 164 94 835 1,213 478
Net earnings excluding special charges, restructuring charges, certain
litigation charges, net, IPR&D and certain acquisition-related costs,
non-cash charge to interest expense due to the change in accounting
rules governing convertible debt, and certain tax adjustments 2,683 2,797 2,973 3,283 3,577(2)
Diluted earnings per share, as reported 2.07 2.32 1.87 1.84 2.79(2)
Special charges, restructuring charges, certain litigation charges, net, IPR&D and
certain acquisition-related costs, non-cash charge to interest expense due to
the change in accounting rules governing convertible debt, and certain tax
adjustments per diluted share 0.13 0.09 0.73 1.08 0.43
Diluted earnings per share excluding special charges, restructuring charges,
certain litigation charges, net, IPR&D and certain acquisition-related costs,
non-cash charge to interest expense due to the change in accounting rules
governing convertible debt, and certain tax adjustments 2.20 2.41 2.60 2.92 3.22
Dividends per share 0.39 0.44 0.50 0.75 0.82
Return on equity 24.6% 25.1% 18.2% 16.5% 22.3%
Research and development expense $ 1,113 $ 1,239 $ 1,275 $ 1,355 $ 1,460
Closing stock price 50.12 53.60 49.42 29.58 43.69
(1) See Notes 2, 3, 4, 5, and 14 to the consolidated financial statements for further discussion.
(2) Net earnings and diluted earnings per share increased by 50 percent and 52 percent, respectively, over the prior year. After adjusting for the impact due to special
charges, restructuring charges, certain litigation charges, net, IPR&D and certain acquisition-related costs, non-cash charge to interest expense due to the change
in accounting rules governing convertible debt, and certain tax adjustments, adjusted net earnings per share increased 9 percent and 10 percent, respectively, over
the prior year.
1