Medtronic 2010 Annual Report Download - page 79

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75
Medtronic, Inc.
Estimated aggregate amortization expense based on the current carrying value of amortizable intangible assets, excluding any
possible future amortization associated with acquired IPR&D which has not met technological feasibility, is as follows:
(in millions)
Fiscal Year
Amortization
Expense
2011 $ 317
2012 294
2013 277
2014 267
2015 253
Thereafter 1,033
$2,441
9. Financing Arrangements
Debt consisted of the following:
April 30, 2010 April 24, 2009
(in millions, except interest rates)
Maturity by
Fiscal Year Payable
Average
Interest Rate Payable
Average
Interest Rate
Short-Term Borrowings:
Commercial paper 2010 $ — — $ 385 0.44%
Capital lease obligations 2010 — — 13 5.29%
Bank borrowings 2010–2011 65 1.20% 123 0.92%
Five-year senior convertible notes 2011 2,200 1.50% — —
Five-year 2005 senior notes 2011 400 4.38% — —
Debt discount 2011 (90) — — —
Total Short-Term Borrowings $2,575 $ 522
Long-Term Debt:
Contingent convertible debentures 2012–2022 $ 15 1.25% $ 15 1.25%
Five-year senior convertible notes 2011 — — 2,200 1.50%
Five-year 2005 senior notes 2011 — — 400 4.38%
Seven-year senior convertible notes 2013 2,200 1.63% 2,200 1.63%
Five-year 2009 senior notes 2014 550 4.50% 550 4.50%
Five-year 2010 senior notes 2015 1,250 3.00% — —
Ten-year 2005 senior notes 2016 600 4.75% 600 4.75%
Ten-year 2009 senior notes 2019 400 5.60% 400 5.60%
Ten-year 2010 senior notes 2020 1,250 4.45% — —
Thirty-year 2009 senior notes 2039 300 6.50% 300 6.50%
Thirty-year 2010 senior notes 2040 500 5.55% — —
Interest rate swaps 2013–2016 33 — — —
Gain from interest rate swap termination N/A 41 — 54 —
Capital lease obligations 2010–2014 18 4.21% 53 5.38%
Bank borrowings 2012–2013 46 5.60% — —
Debt discount 2013 (259) — (519) —
Total Long-Term Debt $6,944 $6,253
Senior Convertible Notes In April 2006, the Company issued
$2.200 billion of 1.500 percent Senior Convertible Notes due 2011
and $2.200 billion of 1.625 percent Senior Convertible Notes due
2013 (collectively, the Senior Convertible Notes). The Senior
Convertible Notes were issued at par and pay interest in cash
semi-annually in arrears on April 15 and October 15 of each year.
The Senior Convertible Notes are unsecured unsubordinated
obligations and rank equally with all other unsecured and
unsubordinated indebtedness. The Senior Convertible Notes had
an initial conversion price of $56.14 per share. The Senior
Convertible Notes may only be converted: (i) during any calendar
quarter if the closing price of the Company’s common stock
reaches 140 percent of the conversion price for 20 trading days
during a specified period, or (ii) if specified distributions to
holders of the Company’s common stock are made or specified
corporate transactions occur or (iii) during the last month prior to