Medtronic 2012 Annual Report Download - page 130

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Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
113
Post-Retirement Benefits
Fair Value Fair Value Measurements
at Using Inputs Considered as
__________________________________________
(in millions) April 27, 2012 Level 1 Level 2 Level 3
___________ _____________ __________ __________ __________
Short-term investments . . . . . . . . . . . . . . . . . . . . $ 19 $ 19 $ –$ –
U.S. government securities . . . . . . . . . . . . . . . . . 25 22 3–
Corporate debt securities . . . . . . . . . . . . . . . . . . 6– 6 –
Other common stock . . . . . . . . . . . . . . . . . . . . . . 27 27 ––
Equity mutual funds/commingled trusts . . . . . . 46 – 18 28
Fixed income mutual funds . . . . . . . . . . . . . . . . . 9– 9 –
Partnership units . . . . . . . . . . . . . . . . . . . . . . . . . . 80 ––80
_____________ __________ __________ __________
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 212 $ 68 $ 36 $ 108
_____________ __________ __________ __________
_____________ __________ __________ __________
Other items to reconcile to fair value
of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8)
_____________
$ 204
_____________
_____________
Fair Value Fair Value Measurements
at Using Inputs Considered as
__________________________________________
(in millions) April 29, 2011 Level 1 Level 2 Level 3
___________ _____________ __________ __________ __________
Short-term investments . . . . . . . . . . . . . . . . . . . . $ 28 $ 28 $–$ –
U.S. government securities . . . . . . . . . . . . . . . . . 17 11 6–
Corporate debt securities . . . . . . . . . . . . . . . . . . 12 – 12 –
Other common stock . . . . . . . . . . . . . . . . . . . . . . 30 30 ––
Equity mutual funds/commingled trusts . . . . . . 46 – 10 36
Fixed income mutual funds . . . . . . . . . . . . . . . . . 8– 8 –
Partnership units . . . . . . . . . . . . . . . . . . . . . . . . . . 66 ––66
_____________ __________ __________ __________
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 207 $ 69 $ 36 $ 102
_____________ __________ __________ __________
_____________ __________ __________ __________
Other items to reconcile to fair value
of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9)
_____________
$ 198
_____________
_____________
The following table provides a reconciliation of the beginning and ending balances of post-retirement
benefit assets measured at fair value that used significant unobservable inputs (Level 3):
April 27, April 29,
(in millions) 2012 2011
___________ ________ ________
Beginning Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 102 $ 89
Total realized gains/(losses) and other-than-temporary
impairment (losses), net included in earnings . . . . . . . . . . . . . . . . . . . . . . 21
Total unrealized (losses)/gains included in accumulated other
comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) 12
Purchases, issuances, and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6–
________ ________
Ending Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 108 $ 102
________ ________
________ ________
Retirement Benefit Plan Funding It is the Company’s policy to fund retirement costs within the limits
of allowable tax deductions. During fiscal year 2012, the Company made discretionary contributions of
approximately $101 million to the U.S. pension plan and approximately $11 million to fund post-retirement
benefits. Internationally, the Company contributed approximately $39 million for pension benefits during
fiscal year 2012. During fiscal year 2013, the Company anticipates that its contribution for pension benefits
and post-retirement benefits will be consistent with those contributions made during fiscal year 2012. Based
on the guidelines under the U.S. Employee Retirement Income Security Act of 1974 and the various
guidelines which govern the plans outside the U.S., the majority of anticipated fiscal year 2013 contributions
will be discretionary.