Medtronic 2009 Annual Report Download - page 91

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87
Medtronic, Inc.
In certain countries outside the U.S., fully funding pension plans is not a common practice, as funding provides no income tax benefit.
Consequently, certain pension plans were partially funded as of April 24, 2009 and April 25, 2008. U.S. and non-U.S. plans with accumulated
benefit obligations in excess of plan assets consist of the following:
Fiscal Year
(in millions) 2009 2008
Accumulated benefit obligation $239 $129
Projected benefit obligation 256 159
Plan assets at fair value 104 15
Plans with projected benefit obligations in excess of plan assets:
Fiscal Year
(in millions) 2009 2008
Projected benefit obligation $432 $403
Plan assets at fair value 258 232
The net periodic benefit costs of the plans include the following components:
U.S. Pension Benefits
Non-U.S. Pension
Benefits
Post-Retirement
Benefits
Fiscal Year Fiscal Year Fiscal Year
(in millions) 2009 2008 2007 2009 2008 2007 2009 2008 2007
Service cost $74 $ 72 $ 64 $ 29 $ 32 $ 27 $ 14 $ 16 $13
Interest cost 60 52 45 19 16 12 12 12 10
Expected return on plan assets (99) (87) (74) (20) (18) (13) (12) (11) (9)
Amortization of prior service costs (1) (1) (1) 111———
Amortization of net actuarial loss 615 15 —22—22
Net periodic benefit cost 40 51 49 29 33 29 14 19 16
Special termination benefits —3— ——— —1—
Total cost for period $40 $ 54 $ 49 $ 29 $ 33 $ 29 $ 14 $ 20 $16
The changes in the components of unrecognized benefit plan costs for fiscal year 2009 are as follows:
(in millions)
U.S.
Pension Benefits
Non-U.S.
Pension Benefits
Post-Retirement
Benefits
Net actuarial loss $250 $ 60 $24
Adjustment due to adoption of SFAS No. 158 measurement date provisions 1 1 —
Amortization of prior service costs 1 (1) —
Amortization of net actuarial loss (6) — —
Effect of exchange rates — (13) —
Changes in unrecognized benefit plan costs $246 $ 47 $24