Medtronic 2012 Annual Report Download - page 68

Statements and Supplementary Data” in this Annual Report on Form 10-K for additional information
regarding accrued income tax obligations, which are not reflected in the table below.
Maturity by Fiscal Year
____________________________________________________________________________
(in millions) Total 2013 2014 2015 2016 2017 Thereafter
___________ _________ _________ _________ _________ _________ _______ __ __________
Contractual obligations related to
off-balance sheet arrangements:
Operating leases(1) . . . . . . . . . . . . . . . . . . . $ 320 $ 111 $ 77 $ 47 $ 29 $ 17 $ 39
Inventory purchases(2) . . . . . . . . . . . . . . . . 226 149 61 12 1– 3
Commitments to fund minority
investments/contingent
acquisition consideration(3) . . . . . . . . . . . 266 24 11 14 15 105 97
Interest payments(4) . . . . . . . . . . . . . . . . . . 3,192 325 289 264 212 185 1,917
Other(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 76 54 31 3115
_________ _________ _________ _________ _________ _________ __________
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,184 $ 685 $ 492 $ 368 $ 260 $ 308 $ 2,071
_________ _________ _________ _________ _________ _________ __________
_________ _________ _________ _________ _________ _________ __________
Contractual obligations reflected
in the balance sheet:
Long-term debt, including
current portion(6) . . . . . . . . . . . . . . . . . . . . $ 9,138 $ 2,213 $ 550 $ 1,250 $ 1,100 $ –$ 4,025
Capital leases(7) . . . . . . . . . . . . . . . . . . . . . . 179 14 13 13 13 30 96
_________ _________ _________ _________ _________ _________ __________
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,317 $ 2,227 $ 563 $ 1,263 $ 1,113 $ 30 $ 4,121
_________ _________ _________ _________ _________ _________ __________
_________ _________ _________ _________ _________ _________ __________
(1) Certain leases require us to pay real estate taxes, insurance, maintenance, and other operating expenses associated with the leased
premises. These future costs are not included in the schedule above.
(2) We have included inventory purchase commitments which are legally binding and specify minimum purchase quantities. These
purchase commitments do not exceed our projected requirements and are in the normal course of business. These commitments
do not include open purchase orders.
(3) Certain commitments related to the funding of cost or equity method investments and/or previous acquisitions are contingent
upon the achievement of certain product-related milestones and various other favorable operational conditions. While it is not
certain if and/or when these payments will be made, the maturity dates included in this table reflect our best estimates. In
accordance with authoritative accounting guidance on business combinations effective in fiscal year 2010, we are required to
record the fair value of contingent acquisition considerations as a liability on the consolidated balance sheets on a prospective basis,
therefore, contingent acquisition considerations are not included in the off-balance sheet disclosure for acquisitions subsequent
to April 24, 2009.
(4) Interest payments in the table above reflect the contractual interest payments on our outstanding debt, and exclude the impact of
the debt discount amortization on the Senior Convertible Notes and impact of interest rate swap agreements. See Note 9 to
the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on
Form 10-K for additional information regarding our debt agreements.
(5) These obligations include certain research and development arrangements.
(6) Long-term debt in the table above includes the $1.075 billion of 2012 Senior Notes, $1.000 billion of 2011 Senior Notes,
$3.000 billion of 2010 Senior Notes, $1.250 billion of 2009 Senior Notes, $2.200 billion of Senior Convertible Notes, $600 million
of 2005 Senior Notes, and certain bank borrowings. The table above excludes the debt discount, the fair value impact of outstanding
interest rate swap agreements, and the unamortized gains from terminated interest rate swap agreements. See Notes 9 and 10 to
the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on
Form 10-K for additional information regarding the interest rate swap agreements.
(7) Capital lease obligations include the $165 million sale-leaseback agreement entered into in the fourth quarter of fiscal year 2012
whereby certain manufacturing equipment was sold and is being leased by us over a ten-year period.
Debt and Capital
Our capital structure consists of equity and interest-bearing debt. Interest-bearing debt as a percentage
of total interest-bearing debt and equity was 38 percent as of both April 27, 2012 and April 29, 2011.
As part of our focus on returning value to our shareholders, shares are repurchased from time to time.
In June 2009 and June 2011, our Board of Directors authorized the repurchase of 60 million and 75 million
shares of our common stock, respectively. During fiscal years 2012 and 2011, we repurchased approximately
37.3 million shares and 30.1 million shares at an average price of $38.64 and $37.86, respectively. As of April
27, 2012, we have used the entire amount authorized under the June 2009 repurchase program and have
approximately 58.4 million shares available for future repurchases.
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