Medtronic 2014 Annual Report Download - page 9

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PART I
Item 1. Business
Overview
Medtronic is the global leader in medical technology. Medtronic was founded in 1949, incorporated as a Minnesota corporation
in 1957, and today serves hospitals, physicians, clinicians, and patients in more than 140 countries worldwide. We remain
committed to a mission written by our founder more than 50 years ago that directs us “to contribute to human welfare by the
application of biomedical engineering in the research, design, manufacture, and sale of products to alleviate pain, restore health,
and extend life.”
We currently function in three operating segments that manufacture and sell device-based medical therapies. Our operating
segments are as follows:
‰Cardiac and Vascular Group
Fiscal Year 2014
(dollars in millions)
Total Cardiac and
Vascular Group
$8,847
Consolidated Net Sales $17,005
Total Restorative
Therapies Group
$6,501
52%
10%
38%
Total Diabetes
Group
$1,657
Cardiac Rhythm Disease Management (CRDM)
Coronary
Structural Heart
Endovascular
‰Restorative Therapies Group
Spine
Neuromodulation
Surgical Technologies
‰Diabetes Group
The chart above shows the net sales and percentage of total net sales contributed by each of our operating segments for the fiscal
year ended April 25, 2014 (fiscal year 2014). For more information please see Note 20 to the consolidated financial statements
in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.
The results of operations, assets, and liabilities of the Physio-Control business, which were previously presented as a component
of the Cardiac and Vascular Group operating segment, are classified as discontinued operations. All information in this “Item 1.
Business” includes only results from continuing operations (excluding Physio-Control) for all periods presented, unless
otherwise noted. For further information regarding discontinued operations, see Note 17 to the consolidated financial statements
in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.
With innovation and market leadership, we have pioneered advances in medical technology in all of our businesses. Over the
last five years, our net sales on a compounded annual growth basis have increased approximately 3 percent, from
$15.392 billion in fiscal year 2010 to $17.005 billion in fiscal year 2014. Our commitment to enhance our offerings by
developing and acquiring new products, wrap-around programs, and solutions to meet the needs of a broader set of stakeholders
is driven by the following primary strategies:
•Therapy Innovation: Delivering strong launch cadence of meaningful therapies and procedures.
•Globalization: Addressing the inequity in health care access globally, primarily in emerging markets.
•Economic Value: Becoming a leader in value-based health care by offering new services and solutions to improve
outcomes, lower costs by reducing hospitalizations, improve remote clinical management, and increase patient
engagement.
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