Medtronic 2013 Annual Report Download - page 97

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75732me_10K.indd 82 6/25/13 6:39 PM
Table of Contents
Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
Activity related to the Company’s investment portfolio is as follows:
Fiscal Year
2013 2012 2011
(in millions) Debt (a) Equity (b)
Proceeds from sales $ 10,350 $ 161
Gross realized gains $ 59 $ 94
Gross realized losses $ (17) $ —
Impairment losses recognized $ — $ (21)
Debt (a)
$ 7,675
$ 52
$ (16)
$ (2)
Equity (b) (c)
$ 113
$ 93
$ —
$ (10)
Debt (a)
$ 9,318
$ 28
$ (15)
$ (5)
Equity (b) (d)
$ 31
$ 85
$ —
$ (24)
(a) Includes available-for-sale debt securities.
(b) Includes marketable equity securities, cost method, equity method, exchange-traded funds, and other investments.
(c) As a result of the Salient and PEAK acquisitions that occurred during fiscal year 2012, the Company recognized a non-
cash gain of $38 million on its previously-held minority investments.
(d) As a result of the Ardian acquisition that occurred during fiscal year 2011, the Company recognized a non-cash gain of
$85 million on its previously-held minority investment.
The total other-than-temporary impairment losses on available-for-sale debt securities for the fiscal year ended April 26, 2013
were not significant. The total other-than-temporary impairment losses on available-for-sale debt securities for the fiscal year
ended April 27, 2012 and April 29, 2011 were $6 million and $18 million, of which $4 million and $13 million, respectively, were
recognized in other comprehensive income and $2 million and $5 million, respectively, were recognized in earnings. These charges
relate to credit losses on certain mortgage-backed securities and auction rate securities. The amount of credit losses represents the
difference between the present value of cash flows expected to be collected on these securities and the amortized cost. Based on
the Company’s assessment of the credit quality of the underlying collateral and credit support available to each of the remaining
securities in which invested, the Company believes it has recorded all necessary other-than-temporary impairments as the Company
does not have the intent to sell, nor is it more likely than not that the Company will be required to sell, before recovery of the
amortized cost.
The following table shows the credit loss portion of other-than-temporary impairments on debt securities held by the Company
as of the dates indicated and the corresponding changes in such amounts:
(in millions)
Balance as of April 29, 2011 $ 20
Credit losses recognized on securities previously not impaired 1
Additional credit losses recognized on securities previously impaired 1
Reductions for securities sold during the period (2)
Balance as of April 27, 2012 $ 20
Credit losses recognized on securities previously not impaired —
Additional credit losses recognized on securities previously impaired —
Reductions for securities sold during the period (11)
Balance as of April 26, 2013 $ 9
The April 26, 2013 balance of available-for-sale debt securities by contractual maturity is shown in the following table at fair
value. Within the table, maturities of mortgage-backed securities have been allocated based upon timing of estimated cash flows,
assuming no change in the current interest rate environment. Actual maturities may differ from contractual maturities because the
issuers of the securities may have the right to prepay obligations without prepayment penalties.
79