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Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
90
The Company completed its annual intangible assets impairment review during the third quarter of
fiscal years ended April 27, 2012, April 29, 2011, and April 30, 2010. The Company did not record any
intangible asset impairments during fiscal years 2012 and 2010. As a result of the analysis performed during
fiscal year 2011, the fair values of the intangible assets were deemed to be less than the carrying values,
resulting in pre-tax impairment losses of $28 million, of which $19 million was related to the fiscal year 2011
restructuring initiative. See Note 7 for further information.
Estimated aggregate amortization expense based on the current carrying value of amortizable
intangible assets, excluding any possible future amortization associated with acquired IPR&D, which has not
met technological feasibility, is as follows:
(in millions) Amortization
Fiscal Year Expense
__________ _____________
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 313
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 857
_____________
$ 2,277
_____________
_____________
9. Financing Arrangements
Debt consisted of the following:
April 27, 2012 April 29, 2011
_________________________________ _________________________________
Average Effective Average Effective
Maturity by Interest Interest Interest Interest
(in millions, except interest rates) Fiscal Year Payable Rate Rate Payable Rate Rate
_______________________________ ____________ _______ _______ _______ _______ _______ ________
Short-Term Borrowings:
Commercial paper . . . . . . . . . . . . . . . . 2012-2013 $ 950 0.14% – $1,500 0.22% –
Capital lease obligations . . . . . . . . . . . 2012-2013 14 3.38% –27.47% –
Bank borrowings . . . . . . . . . . . . . . . . . 2012-2013 200 0.93% – 222 1.25% –
Seven-year senior convertible notes . 2013 2,200 1.63% 6.03% –– –
Debt discount . . . . . . . . . . . . . . . . . . . . 2012-2013 (90) –– (1) ––
_______ ________
Total Short-Term Borrowings . . . . . . . . $3,274 $1,723
_______ ________
_______ ________
Long-Term Debt:
Contingent convertible debentures . . 2012 $– – – $15 1.25% –
Seven-year senior convertible notes . 2013 –– – 2,200 1.63% 6.03%
Five-year 2009 senior notes . . . . . . . . 2014 550 4.50% 4.50% 550 4.50% 4.50%
Five-year 2010 senior notes . . . . . . . . 2015 1,250 3.00% 3.00% 1,250 3.00% 3.00%
Ten-year 2005 senior notes . . . . . . . . . 2016 600 4.75% 4.76% 600 4.75% 4.76%
Five-year 2011 senior notes . . . . . . . . 2016 500 2.63% 2.72% 500 2.63% 2.72%
Ten-year 2009 senior notes . . . . . . . . . 2019 400 5.60% 5.61% 400 5.60% 5.61%
Ten-year 2010 senior notes . . . . . . . . . 2020 1,250 4.45% 4.47% 1,250 4.45% 4.47%
Ten-year 2011 senior notes . . . . . . . . . 2021 500 4.13% 4.19% 500 4.13% 4.19%
Ten-year 2012 senior notes . . . . . . . . . 2022 675 3.13% 3.16% –– –
Thirty-year 2009 senior notes . . . . . . . 2039 300 6.50% 6.52% 300 6.50% 6.52%
Thirty-year 2010 senior notes . . . . . . . 2040 500 5.55%5.56% 500 5.55% 5.56%
Thirty-year 2012 senior notes . . . . . . . 2042 400 4.50% 4.51% –– –
Interest rate swaps . . . . . . . . . . . . . . . . 2013-2022 167 – – 110 ––
Gains from interest rate swap
terminations . . . . . . . . . . . . . . . . . . . . 2012-2016 102 –– 68 ––
Capital lease obligations . . . . . . . . . . . 2013-2025 165 3.57% – 32 6.28% –
Bank borrowings . . . . . . . . . . . . . . . . . 2013 –– – 14 5.60% –
Debt discount . . . . . . . . . . . . . . . . . . . . 2012-2013 –– – (177) ––
_______ ________
Total Long-Term Debt . . . . . . . . . . . . . . $ 7,359 $8,112
_______ ________
_______ ________