Medtronic 2011 Annual Report Download - page 48

44 Medtronic, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations
(continued)
Any gains and losses on the fair value of derivative contracts
would be largely offset by gains and losses on the underlying
transactions. These offsetting gains and losses are not reflected in
the above analysis. We are also exposed to interest rate changes
affecting our investments in interest rate sensitive instruments,
which include our fixed-to-floating interest rate swap agreements.
A sensitivity analysis of the impact on our interest rate sensitive
financial instruments of a hypothetical 10 percent change in
short-term interest rates compared to interest rates at April 29,
2011 indicates that the fair value of these instruments would
correspondingly change by $32 million.
We have investments in marketable debt securities that
are classified and accounted for as available-for-sale. Our debt
securities include U.S. government and agency securities, foreign
government and agency securities, corporate debt securities,
certificates of deposit, mortgage-backed securities, other asset-
backed securities, and auction rate securities. For a discussion
of current market conditions and the impact on our financial
condition and results from operations, please see the “Liquidity
and Capital Resources” section of this management’s discussion
and analysis.
Cautionary Factors That May Affect Future Results
This Annual Report, and other written reports and oral statements
made by or with the approval of one of the Company’s executive
officers from time to time, may include “forward-looking”
statements. Forward-looking statements broadly involve our
current expectations or forecasts of future results. Our forward-
looking statements generally relate to our growth and growth
strategies, financial results, product development, regulatory
approvals, competitive strengths, restructuring initiatives,
intellectual property rights, litigation and tax matters, mergers
and acquisitions, market acceptance of our products, accounting
estimates, financing activities, ongoing contractual obligations,
working capital adequacy, and sales efforts. Such statements can
be identified by the use of terminology such as “anticipate,”
“believe,” “could,” “estimate,” “expect,” “forecast,” “intend,”
“looking ahead,” “may,” “plan,” “possible,” “potential,” “project,”
“should,” “will,” and similar words or expressions. Forward-looking
statements in this Annual Report include, but are not limited to,
development and future launches of products and continued
or future acceptance of products in our operating segments;
market positioning and performance of our products, including
unanticipated issues that may affect FDA and foreign regulatory
approval of new products; increased presence in new markets, as
well as changes in the market and our market share; the
completion of planned acquisitions, divestitures and strategic
investments, as well as integration of acquired companies into our
operations; the resolution of tax matters; the effectiveness of
our development activities in reducing patient care costs; our
expectations regarding health care costs; the elimination of
certain positions or costs related to restructuring initiatives;
outcomes in our litigation matters and governmental
investigations; general economic conditions; the adequacy of
available working capital and our working capital needs; the
continued strength of our balance sheet and liquidity; and the
potential impact of our compliance with governmental regulations
and accounting guidance. One must carefully consider forward-
looking statements and understand that such statements may
be affected by inaccurate assumptions and may involve
a variety of risks and uncertainties, known and unknown,
including, among others, those discussed in the sections entitled
“Government Regulation and Other Considerations” and “Risk
Factors” in our Form 10-K, as well as those related to competition
in the medical device industry, reduction or interruption in our
supply, quality problems, liquidity, decreasing prices, adverse
regulatory action, litigation success, self-insurance, health care
policy changes, and international operations. Consequently, no
forward-looking statement can be guaranteed and actual results
may vary materially. We intend to take advantage of the Safe
Harbor provisions of the Private Securities Litigation Reform Act
of 1995 regarding our forward-looking statements, and are
including this sentence for the express purpose of enabling us to
use the protections of the safe harbor with respect to all forward-
looking statements.
We undertake no obligation to update any statement we make,
but investors are advised to consult all other disclosures by us
in our filings with the Securities and Exchange Commission,
especially on Forms 10-K, 10-Q, and 8-K, in which we discuss in
more detail various important factors that could cause actual
results to differ from expected or historical results. In addition,
actual results may differ materially from those anticipated due to
a number of factors, including, among others, those discussed
in the section entitled “Risk Factors” in our Form 10-K. It is not
possible to foresee or identify all such factors. As such, investors
should not consider any list of such factors to be an exhaustive
statement of all risks, uncertainties, or potentially inaccurate
assumptions.