Medtronic 2015 Annual Report Download - page 62

Operations by Market Geography
The graph below illustrates net sales by market geography for fiscal years 2015, 2014, and 2013:
Fiscal Year 2013
(dollars in millions)
Fiscal Year 2014
(dollars in millions)
Fiscal Year 2015
(dollars in millions)
Non-U.S.
Developed
$6,372
Emerging Markets
$2,584 U.S.
$11,305
Consolidated Net Sales
$20,261
Consolidated Net Sales
$17,005
Consolidated Net Sales
$16,590
Non-U.S.
Developed
$5,652
Emerging Markets
$2,106 U.S.
$9,247
Non-U.S.
Developed
$5,634
Emerging Markets
$1,861 U.S.
$9,095
55%
34%
11%
54%
33%
13%
56%
31%
13%
The table below illustrates net sales by market geography for each of our operating segments for fiscal years 2015 and 2014:
Fiscal Year 2015 Fiscal Year 2014
(in millions) U.S.
Non-U.S.
Developed
Markets
Emerging
Markets U.S.
Non-U.S.
Developed
Markets
Emerging
Markets
Cardiac and Vascular Group $ 4,435 $ 3,412 $ 1,514 $ 3,877 $ 3,540 $ 1,430
Minimally Invasive Therapies Group 1,230 856 301———
Restorative Therapies Group 4,569 1,556 626 4,389 1,564 548
Diabetes Group 1,071 548 143 981 548 128
Total $ 11,305 $ 6,372 $ 2,584 $ 9,247 $ 5,652 $ 2,106
For fiscal year 2015, net sales for the U.S. increased 22 percent, developed markets outside the U.S. increased 13 percent and
emerging markets increased 23 percent compared to the prior fiscal year. Foreign currency had an unfavorable impact of $666
million on net sales for fiscal year 2015. Net sales growth in non-U.S. developed markets was driven by the addition of the
Minimally Invasive Therapies Group in the fourth quarter, as a result of the Covidien acquisition, offset by unfavorable foreign
currency translation. Emerging markets growth was led by strong growth in the Restorative Therapies Group and Diabetes, solid
growth in the Cardiac and Vascular Group, and the addition of the Minimally Invasive Therapies Group in the fourth quarter as
a result of the Covidien acquisition, partially offset by unfavorable foreign currency translation.
For fiscal year 2014, net sales for the U.S increased 2 percent, non-U.S. developed markets remained flat, and emerging markets
increased 13 percent over the prior fiscal year. Foreign currency had an unfavorable impact of $175 million on net sales for
fiscal year 2014. Net sales growth outside of the U.S. was led by strong emerging market growth in Diabetes, the Restorative
Therapies Group, and the Cardiac & Vascular Group, partially offset by unfavorable foreign currency translation.
Net sales outside the U.S. are accompanied by certain financial risks, such as changes in foreign currency exchange rates and
collection of receivables, which typically have longer payment terms. We monitor the creditworthiness of our customers to
which we grant credit terms in the normal course of business. However, a significant amount of our outstanding accounts
receivable are with international customers. We continue to monitor the economic conditions in many countries outside the U.S.
and the average length of time it takes to collect on our outstanding accounts receivable in these countries. Although we do not
currently foresee a significant credit risk associated with a material portion of these receivables, repayment is dependent upon
the financial stability of the economies of those countries.
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