Medtronic 2013 Annual Report Download - page 133

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75732me_10K.indd 118 6/25/13 6:40 PM
Table of Contents
Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
On March 12, 2010, the Company received a civil investigative demand from the DOJ pursuant to the federal False Claims Act
seeking information regarding the Company's knowledge about claims to Medicare for the implantation of implantable cardioverter
defibrillators (ICDs), including reimbursement advice given by the Company, payments to persons or entities involved in decisions
about implantation of ICDs, and the national coverage determination relating to ICDs. The Company is fully cooperating with
this inquiry.
On October 14, 2010, the Company received a subpoena issued by the U.S. Attorney's Office for the Western District of New York
pursuant to the Health Insurance Portability & Accountability Act of 1996, relating to the Company's sales, marketing, and
reimbursement support practices regarding certain neurostimulation devices. The Company is fully cooperating with this inquiry.
On November 9, 2010, the French Competition Authority commenced an investigation of the Company, along with a number of
other medical device companies, and the companies' trade association, Syndicat National de l'Industrie des Technologies Medicales
(SNITEM), to determine whether such companies or SNITEM engaged in any anticompetitive practices in responding to tenders
to purchase certain medical devices. The Company is fully cooperating with the investigation.
On August 24, 2011, the Company received a letter from the DOJ requesting information relating to the Company's practices
regarding the replacement of insulin pumps for Medicare beneficiaries. The Company is fully cooperating with this inquiry.
On May 6, 2013, the Company received a letter from the United States Attorney's Office for the District of Minnesota requesting
information relating to the Company's compliance with the Trade Agreements Act. The Company is fully cooperating with this
inquiry.
The Company has not recorded an expense related to losses in connection with these matters because any potential loss is not
currently probable or reasonably estimable under U.S. GAAP. Additionally, the Company cannot reasonably estimate the range
of loss, if any, that may result from these matters.
In the normal course of business, the Company periodically enters into agreements that require it to indemnify customers or
suppliers for specific risks, such as claims for injury or property damage arising out of the Company's products or the negligence
of its personnel or claims alleging that its products infringe third-party patents or other intellectual property. The Company's
maximum exposure under these indemnification provisions cannot be estimated, and the Company has not accrued any liabilities
within the consolidated financial statements. Historically, the Company has not experienced significant losses on these types of
indemnifications.
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