Medtronic 2013 Annual Report Download - page 121

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75732me_10K.indd 106 6/25/13 6:39 PM
Table of Contents
Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
In certain countries outside the U.S., fully funding pension plans is not a common practice, as funding provides no income tax
benefit. Consequently, certain pension plans were partially funded as of April 26, 2013 and April 27, 2012. U.S. and non-U.S.
plans with accumulated benefit obligations in excess of plan assets consist of the following:
Fiscal Year
(in millions) 2013 2012
Accumulated benefit obligation $ 2,003 $ 1,737
Projected benefit obligation 2,243 1,955
Plan assets at fair value 1,740 1,481
Plans with projected benefit obligations in excess of plan assets consist of the following:
Fiscal Year
(in millions) 2013 2012
Projected benefit obligation $ 2,637 $ 2,456
Plan assets at fair value 2,104 1,950
The net periodic benefit cost of the plans include the following components:
U.S. Pension Benefits Non-U.S. Pension Benefits Post-Retirement Benefits
Fiscal Year Fiscal Year Fiscal Year
(in millions) 2013 2012 2011 2013 2012 2011 2013 2012 2011
Service cost $ 104 $ 92 $ 87 $ 43 $ 42 $ 39 $ 19 $ 19 $ 18
Interest cost 94 87 77 27 29 26 15 17 16
Expected return on plan assets (128) (121) (106) (33) (36) (27) (17) (16) (13)
Amortization of prior service cost (credit) (1) (1) (2) 1 1 1 — — —
Amortization of net actuarial loss 71 45 34 8 4 5 3 3 5
Net periodic benefit cost 140 102 90 46 40 44 20 23 26
Special termination benefits — — 13 — — — — — 2
Total cost for the period $ 140 $ 102 $ 103 $ 46 $ 40 $ 44 $ 20 $ 23 $ 28
The other changes in plan assets and projected benefit obligations recognized in accumulated other comprehensive (loss) income
for fiscal year 2013 are as follows:
(in millions) U.S. Pension
Benefits
Non-U.S.
Pension
Benefits
Post-
Retirement
Benefits
Net actuarial loss (gain)
Prior service credit
$ 150
—
$ 29
(8)
$ (63)
—
Amortization of prior service cost
Amortization of net actuarial gain
Effect of exchange rates
Total recognized in accumulated other comprehensive loss
1
(71)
—
$ 80 $
—
(8)
(5)
8 $
—
(3)
—
(66)
Total recognized in net periodic pension cost and accumulated other
comprehensive loss $ 220 $ 54 $ (46)
103