Medtronic 2016 Annual Report Download - page 116

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Table of Contents
Medtronic plc
Notes to Consolidated Financial Statements (Continued)
113
The Company’s pension plan target allocations at April 29, 2016 and April 24, 2015, by asset category, are as follows:
U.S. Plans
Target Allocation
April 29, 2016 April 24, 2015
Asset Category
Equity securities 49% 49%
Debt securities 23 23
Other 28 28
Total 100% 100%
Non-U.S. Plans
Target Allocation
April 29, 2016 April 24, 2015
Asset Category
Equity securities 34% 35%
Debt securities 27 29
Other 39 36
Total 100% 100%
Retirement Benefit Plan Asset Fair Values The following is a description of the valuation methodologies used for retirement
benefit plan assets measured at fair value.
Short-term investments: Valued at the closing price reported in the active markets in which the individual security is traded.
U.S. government securities: Certain U.S. government securities are valued at the closing price reported in the active markets in
which the individual security is traded. Other U.S. government securities are valued based on inputs other than quoted prices that
are observable.
Corporate debt securities: Valued based on inputs other than quoted prices that are observable.
Common stock: Valued at the closing price reported in the active markets in which the individual security is traded.
Equity mutual funds/Commingled trusts: Valued based on the year-end net asset values of the investment vehicles. The net asset
values of the investment vehicles are based on the fair values of the underlying investments of the commingled trusts valued at
the closing price reported in the active markets in which the individual security is traded. Certain equity commingled trusts contain
underlying investments that are characterized as Level 1 or Level 2 and provide a daily net asset value. The Company classifies
these investments as Level 2. Certain equity commingled trusts contain a material amount underlying investments that are
characterized as Level 3 and do not have a daily reported net asset value. The Company classifies these investments as Level 3.
Fixed income/Commingled trusts: Valued based on the year-end net asset values of the investment vehicles. The net asset values
of the investment vehicles are based on the fair values of the underlying investments of the commingled trusts valued based on
inputs other than quoted prices that are observable. The Company evaluates fixed income commingled trusts to characterize the
underlying investments as Level 1, 2, or 3. Certain fixed income commingled trusts contain underlying investments that are
characterized as Level 1 or Level 2 and the Company classifies these investments as Level 2. Certain fixed income commingled
trusts could contain a material amount underlying investments that are characterized as Level 3 and the Company would classify
these investments as Level 3. As of April 29, 2016, no fixed income commingled trusts are classified as Level 3.
Partnership units: Valued based on the year-end net asset values of the underlying partnerships. The net asset values of the
partnerships are based on the fair values of the underlying investments of the partnerships. Quoted market prices are used to value
the underlying investments of the partnerships, where the partnerships consist of the investment pools which invest primarily in
common stocks. Partnership units include partnerships, private equity investments, and real asset investments. Partnerships
primarily include long/short equity and absolute return strategies. These investments can be redeemed monthly with notice periods
ranging from 45 to 95 days. As of April 29, 2016, there is one absolute return strategy fund totaling $1 million that is in the process
of liquidation. The Company expects to receive the proceeds over the next five years. Private equity investments consist of common