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Table of Contents
Medtronic plc
Notes to Consolidated Financial Statements (Continued)
89
The following tables provide a reconciliation of the beginning and ending balances of items measured at fair value on a
recurring basis that used significant unobservable inputs (Level 3):
(in millions) Total Level 3
Investments Corporate debt
securities Auction rate
securities
Balance as of April 24, 2015 $ 106 $ 1 $ 105
Total unrealized gains/(losses) included in other comprehensive income (3) — (3)
Settlements (58) — (58)
Balance as of April 29, 2016 $ 45 $ 1 $ 44
(in millions) Total Level 3
Investments Corporate debt
securities Auction rate
securities
Balance as of April 25, 2014 $ 106 $ 9 $ 97
Total realized losses and other-than-temporary impairment losses included
in earnings (5)(5) —
Total unrealized gains/(losses) included in other comprehensive income 10 2 8
Settlements (5)(5) —
Balance as of April 24, 2015 $ 106 $ 1 $ 105
Activity related to the Company’s investment portfolio is as follows:
Fiscal Year
2016 2015 2014
(in millions) Debt(1) Equity(2) Debt(1) Equity(2)(3) Debt(1) Equity(2)(3)
Proceeds from sales $ 9,881 $ 42 $ 5,640 $ 250 $ 7,991 $ 120
Gross realized gains 36 38 33 164 15 69
Gross realized losses (53) — (19) — (12) —
Impairment losses recognized — (114) — (29)(1)(9)
(1) Includes available-for-sale debt securities.
(2) Includes marketable equity securities, cost method, equity method, exchange-traded funds, and other investments.
(3) As a result of certain acquisitions that occurred during the fiscal year ended April 29, 2016, the Company recognized a non-cash realized
gain of $9 million on its previously-held minority investment included in other expense, net on the consolidated statement of income.
(4) As a result of certain acquisitions that occurred during the fiscal year ended April 24, 2015, the Company recognized a non-cash realized
gain of $41 million on its previously-held minority investments included in other expense, net on the consolidated statement of income.
Also, a realized gain on an equity method investment totaling $97 million is included in special (gains) charges, net on the consolidated
statement of income.
Credit losses represent the difference between the present value of cash flows expected to be collected on certain mortgage-backed
securities and auction rate securities and the amortized cost of these securities. 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.
As of April 29, 2016 and April 24, 2015, the credit loss portion of other-than temporary impairments on debt securities were not
significant. The total reductions for available-for-sale debt securities sold during the fiscal years ended April 29, 2016 and April 24,
2015 were not significant.