Medtronic 2013 Annual Report Download - page 109

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75732me_10K.indd 94 6/25/13 6:39 PM
Table of Contents
Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
During fiscal year 2011, the Company terminated interest rate swap agreements with a consolidated notional amount of $1.850
billion that were designated as fair value hedges of the fixed interest rate obligation under the Company’s $2.200 billion 1.625
percent Senior Convertible Notes due 2013. Upon termination, the contracts were in an asset position, resulting in cash receipts
of $51 million, which included $11 million of accrued interest.
As of April 26, 2013 and April 27, 2012, the market value of outstanding interest rate swap agreements was an unrealized gain of
$181 million and $167 million, respectively, and the market value of the hedged items was an unrealized loss of $181 million and
$167 million, respectively, which was recorded in other assets with the offset recorded in long-term debt on the consolidated
balance sheets. No hedge ineffectiveness was recorded as a result of these fair value hedges for fiscal year 2013 and less than $1
million and $4 million was recorded for fiscal years 2012 and 2011, respectively, as an increase in interest expense, net on the
consolidated statements of earnings.
During fiscal years 2013, 2012, and 2011, the Company did not have any ineffective fair value hedging instruments. In addition,
the Company did not recognize any gains or losses during fiscal years 2013, 2012, or 2011 on firm commitments that no longer
qualify as fair value hedges.
Balance Sheet Presentation
The following tables summarize the location and fair value amounts of derivative instruments reported in the consolidated balance
sheets as of April 26, 2013 and April 27, 2012. The fair value amounts are presented on a gross basis and are segregated between
derivatives that are designated and qualify as hedging instruments and those that are not, and are further segregated by type of
contract within those two categories.
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