Medtronic 2016 Annual Report Download - page 112

Download and view the complete annual report

Please find page 112 of the 2016 Medtronic annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 158

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158

Table of Contents
Medtronic plc
Notes to Consolidated Financial Statements (Continued)
109
April 29, 2016, April 24, 2015, and April 25, 2014, respectively. During the fiscal years ended April 29, 2016, April 24, 2015, and
April 25, 2014, the Company recognized gross interest expense of approximately $80 million, $142 million, and $36 million,
respectively, in the provision for income taxes in the consolidated statements of income.
The Company’s reserves for uncertain tax positions relate to unresolved matters with the IRS and other taxing authorities. These
reserves are subject to a high degree of estimation and management judgment. Resolution of these significant unresolved matters,
or positions taken by the IRS or other tax authorities during future tax audits, could have a material impact on the Company’s
financial results in future periods. The Company continues to believe that its reserves for uncertain tax positions are appropriate
and that it has meritorious defenses for its tax filings and will vigorously defend them during the audit process, appellate process,
and through litigation in courts, as necessary.
The major tax jurisdictions where the Company conducts business which remain subject to examination are as follows:
Jurisdiction Earliest Year Open
United States - federal and state 1996
Brazil 2011
Canada 2005
China 2009
Costa Rica 2012
Dominican Republic 2011
France 2011
Germany 2009
India 2001
Ireland 2011
Israel 2010
Italy 2005
Japan 2010
Luxembourg 2009
Mexico 2005
Puerto Rico 2009
Singapore 2011
Switzerland 2003
United Kingdom 2009
See Note 15 for additional information regarding the status of current tax audits and proceedings.
12. Retirement Benefit Plans
The Company sponsors various retirement benefit plans, including defined benefit pension plans (pension benefits), post-retirement
medical plans (post-retirement benefits), defined contribution savings plans, and termination indemnity plans, covering
substantially all U.S. employees and many employees outside the U.S. The expense related to these plans was $584 million, $433
million, and $419 million in fiscal years 2016, 2015, and 2014, respectively.
In the U.S., the Company maintains a qualified pension plan designed to provide guaranteed minimum retirement benefits to all
eligible U.S. employees. Pension coverage for non-U.S. employees is provided, to the extent deemed appropriate, through separate
plans. In addition, U.S. and Puerto Rico employees are also eligible to receive specified Company paid health care and life insurance
benefits through the Company’s post-retirement benefits. In addition to the benefits provided under the qualified pension plan,
retirement benefits associated with wages in excess of the IRS allowable limits are provided to certain employees under a non-
qualified plan.
As of April 29, 2016 and April 24, 2015, the net underfunded status of the Company’s benefit plans was $1.4 billion and $1.3
billion, respectively.