Medtronic 2016 Annual Report Download - page 114
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Table of Contents
Medtronic plc
Notes to Consolidated Financial Statements (Continued)
111
In certain countries outside the U.S., fully funding pension plans is not a common practice, as funding provides no income tax
benefit. Consequently, certain pension plans were partially funded as of April 29, 2016 and April 24, 2015. U.S. and non-U.S.
plans with accumulated benefit obligations in excess of plan assets consist of the following:
Fiscal Year
(in millions) 2016 2015
Accumulated benefit obligation $ 3,922 $ 3,678
Projected benefit obligation 4,333 4,032
Plan assets at fair value 2,981 2,823
Plans with projected benefit obligations in excess of plan assets consist of the following:
Fiscal Year
(in millions) 2016 2015
Projected benefit obligation $ 4,362 $ 4,319
Plan assets at fair value 3,009 3,086
The net periodic benefit cost of the plans include the following components:
U.S. Pension Benefits Non-U.S. Pension Benefits
Fiscal Year Fiscal Year
(in millions) 2016 2015 2014 2016 2015 2014
Service cost $ 120 $ 104 $ 107 $ 81 $ 60 $ 54
Interest cost 122 105 97 31 33 29
Expected return on plan assets (180) (160)(141)(48)(41)(35)
Amortization of prior service cost — — 1 — — 1
Amortization of net actuarial loss 98 65 85 20 12 11
Settlement gain $ (1) $ — $ — $ (10) $ — $ —
Net periodic benefit cost $ 159 $ 114 $ 149 $ 74 $ 64 $ 60
The other changes in plan assets and projected benefit obligations recognized in accumulated other comprehensive (loss) income
for fiscal year 2016 are as follows:
(in millions) U.S. Pension
Benefits
Non-U.S.
Pension
Benefits
Net actuarial loss (gain) 205 (11)
Amortization of net actuarial loss (98)(12)
Prior service cost $ — $ (12)
Effect of exchange rates 1 10
Total loss (gain) recognized in accumulated other comprehensive (loss) income $ 108 $ (25)
Total loss recognized in net periodic benefit cost and accumulated other comprehensive
(loss) income $ 267 $ 49
The estimated net actuarial loss that will be amortized from accumulated other comprehensive (loss) income into net periodic
benefit cost, before tax, in fiscal year 2017 for U.S. and non-U.S. pension benefits is expected to be $89 million and $17 million,
respectively.