Medtronic 2008 Annual Report Download - page 85

The following illustrates the adjustments made to the consolidated
balance sheets to record the funded status as of April 27, 2007.
Balance as
of April 28,
2006
Additional
Minimum
Liability
Adjustments
SFAS No. 158
Adjustments
Balance
as of
April 27,
2007
Asset/(liability), net $ 274 $ — $ (276) $ (2)
Intangible asset 3 — (3) —
Deferred tax asset 17 (17) 129 129
AOCI, net 24 (24) 209 209
AOCI, gross 41 (41) 338 338
In certain countries outside the U.S., fully funding pension plans is
not a common practice, as funding provides no income tax benefit.
Consequently, certain pension plans were partially funded as of April 25,
2008 and April 27, 2007. Plans with accumulated benefit obligations in
excess of plan assets consist of the following:
Fiscal Year
2008 2007
Accumulated benefit obligation $ 129 $ 201
Projected benefit obligation 159 241
Plan assets at fair value 15 95
Plans with projected benefit obligations in excess of plan assets:
Fiscal Year
2008 2007
Projected benefit obligation $ 403 $ 355
Plan assets at fair value 232 191
The net periodic benefit costs of the plans include the following components:
U.S. Pension Benefits Non-U.S. Pension Benefits Post-Retirement Benefits
Fiscal Year Fiscal Year Fiscal Year
2008 2007 2006 2008 2007 2006 2008 2007 2006
Service cost $ 72 $ 64 $ 51 $ 32 $ 27 $ 23 $ 16 $ 13 $ 10
Interest cost 52 45 39 16 12 11 12 10 10
Expected return on plan assets (87) (74) (64) (18) (13) (10) (11) (9) (7)
Amortization of net actuarial loss and prior service cost 14 14 13 33 4 22 3
Net periodic benefit cost 51 49 39 33 29 28 19 16 16
Special termination benefits 3— — —— — 1— —
Curtailment/settlement recognition —— 2 —— — —— 1
Total cost for fiscal year
$ 54
$ 49
$ 41
$ 33
$ 29
$ 28
$ 20
$ 16
$ 17
The changes in the components of unrecognized benefit plan costs for fiscal year 2008 are as follows:
U.S.
Pension Benefits
Non-U.S.
Pension Benefits
Post-Retirement
Benefits
Net actuarial gain $ (14) $ (5) $ (25)
Prior service cost 1 1 —
Amortization of net actuarial gain and prior service costs (14) (3) (2)
Effect of exchange rates — 7 —
Changes in unrecognized benefit plan costs
$(27
)
$ —
$ (27
)
The estimated amounts that will be amortized from accumulated other comprehensive (loss)/income into net periodic benefit cost, before tax, in
fiscal year 2009 are as follows:
U.S.
Pension Benefits
Non-U.S.
Pension Benefits
Post-Retirement
Benefits
Amortization of prior service cost $ (1) $ (1) $ —
Amortization of net actuarial loss 6 — —
$ 5
$ (1
)
$ —
81Medtronic, Inc.