Medtronic 2016 Annual Report Download - page 121

Table of Contents
Medtronic plc
Notes to Consolidated Financial Statements (Continued)
118
14. Accumulated Other Comprehensive (Loss) Income
Changes in accumulated other comprehensive (loss) income by component are as follows:
(in millions)
Unrealized
Gain (Loss) on
Available-for-
Sale Securities
Cumulative
Translation
Adjustments(1)
Net Change
in
Retirement
Obligations
Unrealized
Gain (Loss)
on
Derivatives
Total
Accumulated
Other
Comprehensive
(Loss) Income
Balance as of April 25, 2014, net of tax $ (6) $ 218 $ (765) $ (44) $ (597)
Other comprehensive income (loss)
before reclassifications, before tax 169 (495)(617) 545 (398)
Tax (expense) benefit (60) — 198 (199) (61)
Other comprehensive income (loss)
before reclassifications, net of tax 109 (495)(419) 346 (459)
Reclassifications, before tax (138) — 78 (145) (205)
Tax benefit (expense) 49 — (25) 53 77
Reclassifications, net of tax (89) (2) — 53 (3) (92)(4) (128)
Other comprehensive income (loss), net
of tax 20 (495)(366) 254 (587)
Balance as of April 24, 2015, net of tax 14 (277)(1,131) 210 (1,184)
Other comprehensive loss before
reclassifications, before tax (201) (197)(226)(145) (769)
Tax benefit 94 — 85 51 230
Other comprehensive loss before
reclassifications, net of tax (107) (197)(141)(94) (539)
Reclassifications, before tax (22) — 114 (327) (235)
Tax benefit (expense) 8 — (39) 121 90
Reclassifications, net of tax (14) (2) — 75 (3) (206)(4) (145)
Other comprehensive loss, net of tax (121) (197)(66)(300) (684)
Balance as of April 29, 2016, net of tax $ (107) $ (474) $ (1,197) $ (90) $ (1,868)
(1) Taxes are not provided on cumulative translation adjustments as substantially all translation adjustments relate to earnings that are
intended to be indefinitely reinvested outside the U.S.
(2) Represents net realized losses on sales of available-for-sale securities that were reclassified from AOCI to other expense, net (see Note
5).
(3) Includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note 12).
(4) Relates to cash flow hedges that were reclassified from AOCI to other expense, net or cost of products sold and forward starting interest
rate derivative instruments that were reclassified from AOCI to interest expense, net (see Note 8).
15. Commitments and Contingencies
The Company and its affiliates are involved in a number of legal actions involving product liability, intellectual property disputes,
shareholder related matters, environmental proceedings, income tax disputes, governmental proceedings and investigations in the
United States and around the world, and other matters, including those described below. With respect to governmental proceedings
and investigations our standard practice is to cooperate with regulators and investigators in responding to inquiries. The outcomes
of these legal actions are not within the Company’s complete control and may not be known for prolonged periods of time. In
some actions, the enforcement agencies or private claimants seek damages, as well as other relief (including injunctions barring
the sale of products that are the subject of the proceeding), that could require significant expenditures or result in lost revenues.
The Company records a liability in the consolidated financial statements for loss contingencies related to legal actions when a loss
is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable
loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued.
If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is
disclosed. When determining the estimated loss or range of loss, significant judgment is required. Estimates of probable losses
resulting from litigation and governmental proceedings involving the Company are inherently difficult to predict, particularly