Medtronic 2012 Annual Report Download - page 125

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Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
108
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 27,
2012 and April 29, 2011. U.S. and non-U.S. plans with accumulated benefit obligations in excess of plan
assets consist of the following:
Fiscal Year
_______________________
(in millions) 2012 2011
___________ __________ ________
Accumulated benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,737 $ 396
Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,955 437
Plan assets at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,481 193
Plans with projected benefit obligations in excess of plan assets consist of the following:
Fiscal Year
_______________________
(in millions) 2012 2011
___________ __________ ________
Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,456 $ 474
Plan assets at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,950 225
The net periodic benefit cost 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) 2012 2011 2010 2012 2011 2010 2012 2011 2010
___________ _________ _________ _________ _________ _________ _________ _________ _________ _________
Service cost . . . . . . . . . . . . . . . . . . . . . . . $ 92 $ 87 $ 63 $ 42 $ 39 $ 27 $ 18 $ 18 $ 12
Interest cost . . . . . . . . . . . . . . . . . . . . . . . 87 77 68 29 26 22 17 16 14
Expected return on plan assets . . . . . . . (121) (106) (100) (36) (27) (24) (16) (13) (9)
Amortization of prior service cost . . . . (1) (2) (1) 1 1 1– ––
Amortization of net actuarial loss . . . . 45 34 24 5 14 52
Curtailment gain . . . . . . . . . . . . . . . . . . . –––––(1) –––
_________ _________ _________ _________ _________ _________ _________ _________ _________
Net periodic benefit cost . . . . . . . . . . . . 102 90 32 40 44 26 23 26 19
Special termination benefits . . . . . . . . . – 13 7– – –– 22
_________ _________ _________ _________ _________ _________ _________ _________ _________
Total cost for the period . . . . . . . . . . . . . $ 102 $ 103 $ 39 $ 40 $ 44 $ 26 $ 23 $ 28 $ 21
_________ _________ _________ _________ _________ _________ _________ _________ _________
_________ _________ _________ _________ _________ _________ _________ _________ _________
The other changes in plan assets and projected benefit obligations recognized in accumulated other
comprehensive (loss)/income for fiscal year 2012 are as follows:
Non-U.S. Post-
U.S. Pension Pension Retirement
(in millions) Benefits Benefits Benefits
___________ ___________ ___________ ___________
Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 326 $ 59 $ 29
Prior service credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – (4) –
Amortization of prior service cost/(credit) . . . . . . . . . . . 1 (1) –
Amortization of net actuarial gain . . . . . . . . . . . . . . . . . . (45) (4) (4)
Effect of exchange rates . . . . . . . . . . . . . . . . . . . . . . . . . . . – (11) –
___________ ___________ ___________
Total recognized in accumulated other
comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 282 $ 39 $ 25
___________ ___________ ___________
___________ ___________ ___________
Total recognized in net periodic pension cost
and accumulated other comprehensive loss . . . . . . . . . $ 384 $ 79 $ 48
___________ ___________ ___________
___________ ___________ ___________