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Table of Contents
Medtronic plc
Notes to Consolidated Financial Statements (Continued)
90
The April 29, 2016 balance of available-for-sale debt securities, excluding debt funds which have no single maturity date, by
contractual maturity is shown in the following table. Within the table, maturities of mortgage-backed securities have been allocated
based upon timing of estimated cash flows assuming no change in the current interest rate environment. Actual maturities may
differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment
penalties.
(in millions) April 29, 2016
Due in one year or less $ 899
Due after one year through five years 3,181
Due after five years through ten years 2,792
Due after ten years 88
Total debt securities $ 6,960
The Company holds investments in marketable equity securities, which are classified as other assets in the consolidated balance
sheets. The aggregate carrying amount of these investments was $85 million and $80 million as of April 29, 2016 and April 24,
2015, respectively. During the fiscal years ended April 29, 2016 and April 24, 2015, the Company determined that the fair value
of certain marketable equity securities were below their carrying values and that the carrying values of these investments were not
expected to be recoverable within a reasonable period of time. As a result, the Company recognized $20 million and $7 million
in impairment charges for fiscal years 2016 and 2015 respectively, which were recognized within other expense, net in the
consolidated statements of income. There were no marketable equity securities impairment charges recognized for the fiscal year
ended April 25, 2014.
Cost method, equity method, and other investments
The Company holds investments in equity and other securities that are accounted for using the cost or equity method, which are
classified as other assets in the consolidated balance sheets. As of April 29, 2016 and April 24, 2015, the aggregate carrying amount
of equity and other securities without a quoted market price and accounted for using the cost or equity method was $506 million
and $520 million, respectively. These cost or equity method investments are measured at fair value on a nonrecurring basis. The
total carrying value of these investments is reviewed quarterly for changes in circumstance or the occurrence of events that suggest
the Company’s investment may not be recoverable. The value of cost or equity method investments is not adjusted if there are no
identified events or changes in circumstances that may have a material adverse effect on the fair value of the investment.
During the fiscal year ended April 29, 2016, the Company determined that the fair values of certain cost method investments were
below their carrying values and that the carrying values of these investments were not expected to be recoverable within a reasonable
period of time. As a result, the Company recognized $23 million in impairment charges during the fiscal year ended April 29,
2016, which was recorded in other expense, net and $70 million in impairment charges which was recorded in special charges
(gains), net in the consolidated statements of income. During the fiscal year ended April 24, 2015, and April 25, 2014 the Company
determined that the fair values of certain cost method investments were below their carrying values and that the carrying values
of these investments were not expected to be recoverable within a reasonable period of time. As a result, the Company recognized
$7 million and $10 million in impairment charges during fiscal years 2015 and 2014 respectively, which were recorded in other
expense, net in the consolidated statements of income. These investments fall within Level 3 of the fair value hierarchy, due to the
use of significant unobservable inputs to determine fair value, as the investments are privately-held entities without quoted market
prices. To determine the fair value of these investments, the Company used all pertinent financial information available related to
the entities, including financial statements and market participant valuations from recent and proposed equity offerings.