Medtronic 2015 Annual Report Download - page 107

Medtronic plc
Notes to Consolidated Financial Statements (Continued)
Based upon a preliminary acquisition valuation, in connection with the Covidien acquisition, the Company acquired $18.3
billion of customer-related intangible assets, $7.1 billion of technology-based intangible assets, $0.5 billion of tradenames, and
$0.4 billion of IPR&D. Refer to Note 2 for additional information.
Amortization expense for fiscal years 2015, 2014, and 2013 was $733 million, $349 million, and $331 million, respectively.
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)
Fiscal Year
Amortization
Expense
2016 $ 1,911
2017 1,889
2018 1,858
2019 1,765
2020 1,717
8. Financing Arrangements
Short-term debt consisted of the following:
April 24, 2015 April 25, 2014
(in millions) Payable Payable
Capital lease obligations $ 16 $ 14
Bank borrowings 303 337
3.000 percent five-year 2010 senior notes — 1,250
2.625 percent five-year 2011 senior notes 500 —
4.750 percent ten-year 2005 senior notes 600 —
1.350 percent 2012 CIFSA senior notes 600 —
2.800 percent 2010 CIFSA senior notes 400 —
Interest rate swaps 10 12
Debt premium 5—
Total Short-Term Borrowings $ 2,434 $ 1,613
Commercial Paper On January 26, 2015, Medtronic Global Holdings S.C.A., an entity organized under the laws of
Luxembourg (Medtronic Luxco), entered into various agreements pursuant to which Medtronic Luxco may issue unsecured
commercial paper notes (the 2015 Commercial Paper Program) on a private placement basis up to a maximum aggregate
amount outstanding at any time of $3.500 billion. The Company and Medtronic, Inc. have guaranteed the obligations of
Medtronic Luxco under the 2015 Commercial Paper Program. In connection with entry into the 2015 Commercial Paper
Program, Medtronic, Inc. and Covidien terminated their respective existing commercial paper programs. Medtronic, Inc’s
previous commercial paper program allowed a maximum aggregate amount outstanding at any time of $2.250 billion. No
amounts were outstanding as of April 24, 2015.
During fiscal years 2015 and 2014, the weighted average original maturity of the commercial paper outstanding was approximately
52 and 53 days, respectively, and the weighted average interest rate was 0.13 percent and 0.09 percent, respectively. The issuance
of commercial paper reduces the amount of credit available under the Company’s existing line of credit.
Bank Borrowings Outstanding bank borrowings as of April 24, 2015 were short-term advances to certain non-U.S.
subsidiaries under credit agreements with various banks. Bank borrowings consist primarily of borrowings at interest rates
considered favorable by management ranging from 0.28% to 0.29% and the borrowing is a natural hedge of foreign currency
and exchange exchange rate risk.
Line of Credit On January 26, 2015, the Company amended and restated its existing Credit Facility and entered into the Amended
and Restated Credit Agreement (the Amended and Restated Revolving Credit Agreement), by and among Medtronic, Medtronic,
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