Medtronic 2012 Annual Report Download - page 101

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available to each of the remaining securities in which invested, the Company believes it has recorded all
necessary other-than-temporary impairments as the Company does not have the intent to sell, nor is it more
likely than not that the Company will be required to sell, before recovery of the amortized cost.
The following table shows the credit loss portion of other-than-temporary impairments on debt
securities held by the Company as of the dates indicated and the corresponding changes in such amounts:
(in millions)
__________
Balance as of April 30, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17
Credit losses recognized on securities previously not impaired . . . . . . 2
Additional credit losses recognized on securities previously impaired 3
Reductions for securities sold during the period . . . . . . . . . . . . . . . . . . (2)
___________
Balance as of April 29, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20
Credit losses recognized on securities previously not impaired . . . . . . 1
Additional credit losses recognized on securities previously impaired 1
Reductions for securities sold during the period . . . . . . . . . . . . . . . . . . (2)
___________
Balance as of April 27, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20
___________
___________
The April 27, 2012 balance of available-for-sale debt securities by contractual maturity is shown in the
following table at fair value. Within the table, maturities of mortgage-backed securities have been allocated
based upon timing of estimated cash flows, assuming no change in the current interest rate environment.
Actual maturities may differ from contractual maturities because the issuers of the securities may have the
right to prepay obligations without prepayment penalties.
(in millions) April 27, 2012
__________ ___________
Due in one year or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,940
Due after one year through five years . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,374
Due after five years through ten years . . . . . . . . . . . . . . . . . . . . . . . . . . . 796
Due after ten years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
___________
Total debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,242
___________
___________
As of April 27, 2012 and April 29, 2011, the aggregate carrying amount of equity and other securities
without a quoted market price and accounted for using the cost or equity method was $508 million and
$652 million, respectively. The total carrying value of these investments is reviewed quarterly for changes
in circumstance or the occurrence of events that suggest the Company’s investment may not be recoverable.
The fair value of cost or equity method investments is not adjusted if there are no identified events or
changes in circumstances that may have a material adverse effect on the fair value of the investment. During
fiscal year 2012, in accordance with authoritative guidance, the Company transferred investments in a public
company accounted for as a cost method investment with a cost basis of $46 million to available-for-sale
marketable equity securities, due to restrictions on the investment being within one year of lapsing. The
April 27, 2012 cost method, equity method, and other investments balance includes $132 million of
investments in a public company with trading restrictions through December 31, 2013. These investments
will be reclassified to available-for-sale marketable equity securities when the restriction is within one year
of the restriction lapsing.
Gains and losses realized on trading securities and available-for-sale debt securities are recorded in
interest expense, net in the consolidated statements of earnings. Gains and losses realized on marketable
equity securities, cost method, equity method, and other investments are recorded in other expense, net in
the consolidated statements of earnings. In addition, unrealized gains and losses on available-for-sale debt
securities are recorded in accumulated other comprehensive loss in the consolidated balance sheets and
unrealized gains and losses on trading securities are recorded in interest expense, net in the consolidated
statements of earnings. Gains and losses from the sale of investments are calculated based on the specific
identification method.
84
Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)