Medtronic 2012 Annual Report Download - page 127

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Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
110
The Plan did not hold any investments in the Company’s common stock as of April 27, 2012 and
April 29, 2011.
The Company’s pension plan target allocations at April 27, 2012 and April 29, 2011, by asset category,
are as follows:
U.S. Plans
Target Allocation
______________________
2012 2011
_______ _______
Asset Category
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50% 50%
Debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 20
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 30
_______ _______
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100% 100%
_______ _______
_______ _______
Non-U.S. Plans
Target Allocation
______________________
2012 2011
_______ _______
Asset Category
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41% 41%
Debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 23
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 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
available 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 $12 million
that are in the process of liquidation. The Company expects to receive the majority of the proceeds over the
next five years. Private equity investments consist of common stock and debt instruments of private