Medtronic 2015 Annual Report Download - page 72

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indemnification provisions cannot be estimated, and we have not accrued any liabilities within our consolidated financial
statements or included any indemnification provisions in our commitments table. Historically, we have not experienced
significant losses on these types of indemnification obligations.
We believe our off-balance sheet arrangements do not have a material current or anticipated future effect on our consolidated
earnings, financial position, or cash flows. Presented below is a summary of contractual obligations and other minimum
commercial commitments as of April 24, 2015. See Notes 8 and 14 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 long-term debt
and lease obligations, respectively. Additionally, see Note 12 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 accrued income
tax obligations, which are not reflected in the table below.
Maturity by Fiscal Year
(in millions) Total 2016 2017 2018 2019 2020 Thereafter
Contractual obligations related
to off-balance sheet
arrangements:
Operating leases(1) $ 624 $ 196 $ 138 $ 93 $ 66 $ 43 $ 88
Commitments to fund minority
investments/contingent
acquisition consideration(2) 494 58 54 144 41 40 157
Interest payments(3) 16,680 1,175 1,156 1,113 998 978 11,260
Other(4) 415 265 63 32 19 18 18
Contractual obligations related
to off-balance sheet
arrangements subtotal $ 18,213 $ 1,694 $ 1,411 $ 1,382 $ 1,124 $ 1,079 $ 11,523
Contractual obligations
reflected in the balance sheet:
Long-term debt, including
current portion(5) $ 35,445 $ 2,404 $ 506 $ 6,154 $ 403 $ 4,253 $ 21,725
Capital leases 145 15 32 19 20 20 39
Contractual obligations
reflected in the balance sheet
subtotal $ 35,590 $ 2,419 $ 538 $ 6,173 $ 423 $ 4,273 $ 21,764
Total contractual obligations $ 53,803 $ 4,113 $ 1,949 $ 7,555 $ 1,547 $ 5,352 $ 33,287
(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) 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, and estimated royalty obligations. 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.
(3) Interest payments in the table above reflect the contractual interest payments on our outstanding debt, and exclude the
impact of the debt discount amortization and impact of interest rate swap agreements. See Note 8 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.
(4) 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. These obligations also include certain research and development
arrangements.
(5) Long-term debt in the table above includes the $3.000 billion Term Loan Credit Agreement, $5.000 billion of CIFSA
Senior Notes, $17.000 billion of 2015 Senior Notes, $2.000 billion of 2014 Senior Notes, $3.000 billion of 2013 Senior
Notes, $1.075 billion of 2012 Senior Notes, $1.000 billion of 2011 Senior Notes, $1.750 billion of 2010 Senior Notes,
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