Medtronic 2013 Annual Report Download - page 123

Download and view the complete annual report

Please find page 123 of the 2013 Medtronic annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 145

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145

75732me_10K.indd 108 6/25/13 6:39 PM
Table of Contents
Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
Outside the U.S., pension plan assets are typically managed by decentralized fiduciary committees. There is significant variation
in policy asset allocation from country to country. Local regulations, local funding rules, and local financial and tax considerations
are part of the funding and investment allocation process in each country.
The Plan did not hold any investments in the Company’s common stock as of April 26, 2013 or April 27, 2012.
The Company’s pension plan target allocations at April 26, 2013 and April 27, 2012, by asset category, are as follows:
U.S. Plans
Target Allocation
Asset Category
Equity securities
Debt securities
Other
Total
2013
50%
20
30
100%
2012
50%
20
30
100%
Non-U.S. Plans
Target Allocation
2013 2012
Asset Category
Equity securities 40% 41%
Debt securities 22 23
Other 38 36
Total 100% 100%
Retirement Benefit Plan Asset Fair Values The following is a description of the valuation methodologies used for retirement
benefit plan assets measured at fair value.
Short-term investments: Valued at the closing price reported in the active markets in which the individual security is traded.
U.S. government securities: Certain U.S. government securities are valued at the closing price reported in the active markets in
which the individual security is traded. Other U.S. government securities are valued based on inputs other than quoted prices that
are observable.
Corporate debt securities: Valued based on inputs other than quoted prices that are observable.
Common stock: Valued at the closing price reported in the active markets in which the individual security is traded.
Equity Mutual Funds/Commingled Trusts: Valued based on the year-end net asset values of the investment vehicles. The net asset
values of the investment vehicles are based on the fair values of the underlying investments of the partnerships valued at the closing
price reported in the active markets in which the individual security is traded. Equity mutual funds have a daily reported net asset
value and the Company classifies these investments as Level 2. Commingled trusts do not have a daily reported net asset value
and the Company classifies these investments as Level 3.
Fixed Income Mutual Funds: Valued based on the year-end net asset values of the investment vehicles. The net asset values of the
investment vehicles are based on the fair values of the underlying investments of the partnerships valued based on inputs other
than quoted prices that are observable.
Partnership Units: Valued based on the year-end net asset values of the underlying partnerships. The net asset values of the
partnerships are based on the fair values of the underlying investments of the partnerships. Quoted market prices are used to value
the underlying investments of the partnerships, where the partnerships consist of the investment pools which invest primarily in
common stocks. Partnership units include partnerships, private equity investments, and real asset investments. Partnerships
primarily include long/short equity and absolute return strategies. These investments can be redeemed monthly with notice periods
ranging from 45 to 95 days. There are two absolute return strategy funds totaling $7 million that are in the process of liquidation.
105