Medtronic 2010 Annual Report Download - page 95

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91
Medtronic, Inc.
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 30, 2010 and April 24, 2009. U.S. and non-U.S. plans with accumulated
benefit obligations in excess of plan assets consist of the following:
Fiscal Year
(in millions) 2010 2009
Accumulated benefit obligation $363 $239
Projected benefit obligation 393 256
Plan assets at fair value 183 104
Plans with projected benefit obligations in excess of plan assets: Fiscal Year
(in millions) 2010 2009
Projected benefit obligation $675 $432
Plan assets at fair value 420 258
The net periodic benefit costs of the plans include the following components:
U.S. Pension Benefits
Non-U.S. Pension
Benefits
Post-Retirement
Benefits
Fiscal Year Fiscal Year Fiscal Year
(in millions) 2010 2009 2008 2010 2009 2008 2010 2009 2008
Service cost $ 63 $ 74 $ 72 $ 27 $ 29 $ 32 $12 $ 14 $ 16
Interest cost 68 60 52 22 19 16 14 12 12
Expected return on plan assets (100) (99) (87) (24) (20) (18) (9) (12) (11)
Amortization of prior service costs (1) (1) (1) 11 1 —— —
Amortization of net actuarial loss 26 15 1— 2 2— 2
Curtailment gain —— — (1) — — —— —
Net periodic benefit cost 32 40 51 26 29 33 19 14 19
Special termination benefits 7— 3 —— — 2— 1
Total cost for period $ 39 $ 40 $ 54 $ 26 $ 29 $ 33 $21 $ 14 $ 20
The other changes in plan assets and projected benefit obligation recognized in other comprehensive income for fiscal year 2010 are
as follows:
(in millions)
U.S.
Pension Benefits
Non-U.S.
Pension Benefits
Post-Retirement
Benefits
Net actuarial loss $214 $58 $53
Prior service cost — 3 —
Amortization of prior service costs 1 (1) —
Amortization of net actuarial loss (2) (1) (2)
Effect of exchange rates — 2 —
Total recognized in other comprehensive income $213 $61 $51
Total recognized in net periodic pension cost and other comprehensive income $252 $87 $72
The estimated amounts that will be amortized from accumulated other comprehensive (loss)/income into net periodic benefit cost,
before tax, in fiscal year 2011 are as follows:
(in millions)
U.S.
Pension Benefits
Non-U.S.
Pension Benefits
Post-Retirement
Benefits
Amortization of prior service cost $ (2) $ 1 $—
Amortization of net actuarial loss 33 5 5
$ 31 $ 6 $ 5