Medtronic 2013 Annual Report Download - page 124

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75732me_10K.indd 109 6/25/13 6:39 PM
Table of Contents
Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
The Company expects to receive the majority of the proceeds over the next five years. Private equity investments consist of common
stock and debt instruments of private companies. For private equity funds, the sum of the unfunded commitments is $29 million
and the estimated liquidation period of these funds is expected to be one to 15 years. Real asset investments consist of commodities,
derivatives, Real Estate Investment Trusts, and illiquid real estate holdings. These investments have redemption and liquidation
periods ranging from 30 days to 10 years. If a quoted market price is not available for a partnership investment, other valuation
procedures are utilized to arrive at fair value.
Registered Investment Companies: Valued at the quoted market prices of shares held by the plan at year-end in the active market
on which the individual securities are traded.
Insurance Contracts: Comprised of investments in collective (group) insurance contracts, consisting of individual insurance
policies. The policyholder is the employer and each member is the owner/beneficiary of their individual insurance policy. These
policies are a part of the insurance company’s general portfolio and participate in the insurer’s profit-sharing policy on an excess
yield basis.
The methods described above may produce fair values that may not be indicative of net realizable value or reflective of future fair
values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market
participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result
in a different fair value measurement at the reporting date.
During fiscal year 2011, the Company reviewed the hierarchy classification of fixed income mutual funds. The Company determined
these investments had valuation characteristics consistent with Level 2 securities. Consequently, the Company transferred fixed
income mutual funds from Level 1 to Level 2. Additionally, the Company reviewed the hierarchy classification of registered
investment companies. The Company determined these investments had valuation characteristics consistent with Level 2 securities.
Consequently, the Company transferred registered investment companies from Level 1 to Level 2. There were no transfers from
Level 1 or 2 to Level 3 during the fiscal years ended April 26, 2013 or April 27, 2012.
The following tables provide information by level for the retirement benefit plan assets that are measured at fair value, as defined
by U.S. GAAP. See Note 6 for discussion of the fair value measurement terms of Levels 1, 2, and 3.
U.S. Pension Benefits
(in millions)
Fair Value
at
April 26, 2013 Level 1
Fair Value Measurements
Using Inputs Considered as
Level 2 Level 3
Short-term investments $ 195 $ 195 $ — $ —
U.S. government securities
Corporate debt securities
Other common stock
172
62
216
145
—
216
27
61
—
—
1
—
Equity mutual funds/commingled trusts
Fixed income mutual funds
377
72
—
—
150
72
227
—
Partnership units 623
$ 1,717 $
—
556
—
$ 310 $
623
851
106