Medtronic 2013 Annual Report Download - page 119

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75732me_10K.indd 104 6/25/13 6:39 PM
Table of Contents
Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
directly from the Kyphon shareholders, the IRS has argued that a deemed taxable event occurred. The Company disagrees with
the IRS and is currently attempting to resolve these matters at the IRS Appellate level and will proceed through litigation, if
necessary.
The Company’s reserves for uncertain tax positions relate to unresolved matters with the IRS and other taxing authorities. These
reserves are subject to a high degree of estimation and management judgment. Resolution of these significant unresolved matters,
or positions taken by the IRS or foreign tax authorities during future tax audits, could have a material impact on the Company’s
financial results in future periods. The Company continues to believe that its reserves for uncertain tax positions are appropriate
and that it has meritorious defenses for its tax filings and will vigorously defend them during the audit process, appellate process,
and through litigation in courts, as necessary.
14. Retirement Benefit Plans
The Company sponsors various retirement benefit plans, including defined benefit pension plans (pension benefits), post-retirement
medical plans (post-retirement benefits), defined contribution savings plans, and termination indemnity plans, covering
substantially all U.S. employees and many employees outside the U.S. The cost of these plans was $419 million, $319 million,
and $368 million in fiscal years 2013, 2012, and 2011, respectively.
In the U.S., the Company maintains a qualified pension plan designed to provide guaranteed minimum retirement benefits to all
eligible U.S. employees. Pension coverage for non-U.S. employees is provided, to the extent deemed appropriate, through separate
plans. In addition, U.S. and Puerto Rico employees are also eligible to receive specified Company paid health care and life insurance
benefits through the Company’s post-retirement benefits. In addition to the benefits provided under the qualified pension plan,
retirement benefits associated with wages in excess of the IRS allowable limits are provided to certain employees under a non-
qualified plan.
As of April 26, 2013 and April 27, 2012, the net underfunded status of the Company’s benefit plans was $584 million and $621
million, respectively.
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