Medtronic 2014 Annual Report Download - page 126

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Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
Fair Value
as of
April 26, 2013
Fair Value Measurements
Using Inputs Considered as
(in millions) Level 1 Level 2 Level 3
Short-term investments $ 28 $ 28 $ — $ —
U.S. government securities 24 20 4 —
Corporate debt securities 9 — 9 —
Other common stock 31 31 — —
Equity mutual funds/commingled trusts 53 — 21 32
Fixed income mutual funds 10 — 10 —
Partnership units 88——88
Total $ 243 $ 79 $ 44 $ 120
Other items to reconcile to fair value of plan assets (10)
$ 233
The following tables provide a reconciliation of the beginning and ending balances of post-retirement benefit assets measured at
fair value that used significant unobservable inputs (Level 3):
(in millions)
Total Level 3
Investments
Commingled
Trusts Partnership Units
Balance as of April 26, 2013 $ 120 $ 32 $ 88
Total realized gains (losses) included in earnings 4 — 4
Total unrealized gains (losses) included in accumulated other
comprehensive loss 13 9 4
Purchases and sales, net 1 — 1
Balance as of April 25, 2014 $ 138 $ 41 $ 97
(in millions)
Total Level 3
Investments
Commingled
Trusts Partnership Units
Balance as of April 27, 2012 $ 108 $ 28 $ 80
Total realized gains (losses) included in earnings 5 4 1
Total unrealized gains (losses) included in accumulated other
comprehensive loss 4 — 4
Purchases and sales, net 3 — 3
Balance as of April 26, 2013 $ 120 $ 32 $ 88
Retirement Benefit Plan Funding It is the Company’s policy to fund retirement costs within the limits of allowable tax
deductions. During fiscal year 2014, the Company made discretionary contributions of approximately $88 million to the U.S.
pension plan and approximately $20 million to fund post-retirement benefits. Internationally, the Company contributed
approximately $48 million for pension benefits during fiscal year 2014. During fiscal year 2015, the Company anticipates that
its contribution for pension benefits and post-retirement benefits will be less than those contributions made during fiscal year
2014. 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 2015 contributions will be discretionary. The
Company believes that, along with pension assets, the returns on invested pension assets, and Company contributions, the
Company will be able to meet its pension and other post-retirement obligations in the future.
118