Medtronic 2011 Annual Report Download - page 71

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67
Medtronic, Inc.
Information regarding the Company’s available-for-sale
and trading securities at April 29, 2011 and April 30, 2010 is
as follows:
April 2 9, 2011 April 30, 2010
(in millions)
Short-
term
Long-
term
Short-
term
Long-
term
Available-for-sale securities $1,046 $5,425 $2,375 $4,060
Trading securities — 39 — 30
Total $1,046 $5,464 $2,375 $4,090
The following tables show the gross unrealized losses and fair
values of the Company’s available-for-sale investments in
individual securities that have been in a continuous unrealized
loss position deemed to be temporary for less than 12 months
and for more than 12 months, aggregated by investment category
as of April 29, 2011 and April 30, 2010:
April 2 9, 2 011
Less Than 12
Months
More Than 12
Months
(in millions)
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Corporate debt securities $ 256 $(1) $ 16 $ (5)
Auction rate securities — — 133 (34)
Mortgage-backed securities 161 (1) 67 (7)
U.S. government and agency
securities 267 (1) — —
Other asset-backed securities 74 (1) 12 (2)
Marketable equity securities 92 (4) — —
Total $ 850 $(8) $228 $(48)
April 30, 2010
Less Than 12
Months
More Than 12
Months
(in millions)
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Corporate debt securities $ 890 $ (3) $ 39 $ (9)
Auction rate securities — — 142 (52)
Mortgage-backed securities 97 — 92 (15)
U.S. government and agency
securities 853 (1) — —
Other asset-backed securities 95 (1) 19 (2)
Total $ 1 ,935 $ (5) $ 292 $ (78)
At April 29, 2011, the Company concluded that the unrealized
losses associated with the available-for-sale securities detailed
above were not other-than-temporary 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.
Activity related to the Company’s short-term and long-term investment portfolio is as follows:
Fiscal Year
2011 2010 2009
(in millions) Debt(a) Equity(b)(c) Debt(a) Equity(b) Debt(a) Equity(b)
Proceeds from sales $ 6 ,443 $ 31 $ 3,791 $ 27 $ 2,845 $—
Gross realized gains $ 28 $ 85 $ 44 $ 10 $ 35 $—
Gross realized losses $ (15) $ — $ (6) $ — $ (8) $—
Impairment losses recognized $ (5) $(24) $ (14) $(40) $ (38) $ (4)
(a) Includes available-for-sale debt securities.
(b) Includes marketable equity securities, cost method, equity method, exchange-traded funds, and other investments.
(c) As a result of the Ardian acquisition that occurred during fiscal year 2011, the Company recognized an $85 million non-cash gain on its previously held minority investment.
The total other-than-temporary impairment losses on available-
for-sale debt securities for the fiscal years ended April 29, 2011
and April 30, 2010 were $18 million and $29 million, respectively,
of which $13 million and $15 million, respectively, were recognized
in accumulated other comprehensive loss resulting in $5 million
and $14 million, respectively, of charges being recognized in
earnings. These charges relate to credit losses on certain
mortgage-backed securities and auction rate securities. The
amount of credit losses represents the difference between the
present value of cash flows expected to be collected on these