Medtronic 2013 Annual Report Download - page 104

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75732me_10K.indd 89 6/25/13 6:39 PM
Table of Contents
Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
8. Financing Arrangements
Debt consisted of the following:
(in millions, except interest rates) Maturity by
Fiscal Year Payable
April 26, 2013
Average
Interest
Rate
Effective
Interest
Rate Payable
April 27, 2012
Average
Interest
Rate
Effective
Interest
Rate
Short-Term Borrowings:
Commercial paper 2013-2014 $ 125 0.21% — $ 950 0.14% —
Capital lease obligations 2013-2014 14 3.30% — 14 3.38% —
Bank borrowings 2013-2014 221 0.57% — 200 0.93% —
Five-year 2009 senior notes 2014 550 4.50% 4.50% — — —
Seven-year senior convertible
notes 2013 — — — 2,200 1.63% 6.03%
Debt discount 2013 — — — (90) — —
Total Short-Term Borrowings $ 910 $ 3,274
Long-Term Debt:
Five-year 2009 senior notes 2014 — — — 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%
Five-year 2013 senior notes 2018 1,000 1.38% 1.41% — — —
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% 675 3.13% 3.16%
Ten-year 2013 senior notes 2023 1,250 2.75% 2.78% — — —
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% 400 4.50% 4.51%
Thirty-year 2013 senior notes 2043 750 4.00% 4.12% — — —
Interest rate swaps 2015-2022 181 — — 167 — —
Deferred gains from interest
rate swap terminations — 50 — — 102 — —
Capital lease obligations 2013-2025 152 3.59% — 165 3.57% —
Bank borrowings 2015 3 5.00% — — — —
Discount 2018-2043 (20) — — — — —
Total Long-Term Debt $ 9,741 $ 7,359
Senior Convertible Notes In April 2006, the Company issued $2.200 billion of 1.500 percent Senior Convertible Notes due
2011 (2011 Senior Convertible Notes) and $2.200 billion of 1.625 percent Senior Convertible Notes due 2013 (2013 Senior
Convertible Notes) (collectively, the Senior Convertible Notes). The Senior Convertible Notes were issued at par and paid interest
in cash semi-annually. The 2011 Senior Convertible Notes were repaid in April 2011. The 2013 Senior Convertible Notes were
repaid in April 2013. Concurrent with the issuance of the 2013 Senior Convertible Notes, the Company purchased call options on
its common stock in private transactions. The call options expired in June 2013 with no financial statement impact.
The Company accounted for the Senior Convertible Notes in accordance with the authoritative guidance for convertible debt,
which required the proceeds from the issuance of the Senior Convertible Notes to be allocated between a liability component
86