SEC Filings

10-Q
MEDTRONIC PLC filed this Form 10-Q on 09/01/2017
Entire Document
 
Medtronic plc
Notes to Consolidated Financial Statements
(Unaudited)


The following tables provide a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3):
 
Three months ended July 28, 2017
(in millions)
Total Level 3
Investments
 
Corporate debt
securities
 
Auction rate
securities
April 28, 2017
$
45

 
$
1

 
$
44

Total unrealized gains (losses) included in other comprehensive income

 

 

July 28, 2017
$
45

 
$
1

 
$
44

 
 
 
 
 
 
 
Three months ended July 29, 2016
(in millions)
Total Level 3
Investments
 
Corporate debt
securities
 
Auction rate
securities
April 29, 2016
$
45

 
$
1

 
$
44

Total unrealized gains (losses) included in other comprehensive income

 

 

July 29, 2016
$
45

 
$
1

 
$
44

Activity related to the Company’s investment portfolio is as follows:
 
Three months ended
 
July 28, 2017
 
July 29, 2016
(in millions)
Debt(1)
 
Equity(2)
 
Debt(1)
 
Equity(2)
Proceeds from sales
$
971

 
$

 
$
1,098

 
$
6

Gross realized gains
8

 
7

 
7

 
4

Gross realized losses
(3
)
 

 
(12
)
 

Impairment losses recognized

 

 

 
(3
)
(1)
Includes available-for-sale debt securities.
(2)
Includes marketable equity securities, cost and equity method investments, and other investments.
Credit losses represent the difference between the present value of cash flows expected to be collected on certain mortgage-backed securities and auction rate securities and the amortized cost of these securities. Based on the Company’s assessment of the credit quality of the underlying collateral and credit support available to each of the remaining securities in which the Company is invested, the Company believes it has recognized 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.
At July 28, 2017 and April 28, 2017, the credit loss portion of other-than-temporary impairments on debt securities was not significant. The total reductions of available-for-sale debt securities sold during the three months ended July 28, 2017 and July 29, 2016 were not significant.
The July 28, 2017 balance of available-for-sale debt securities, excluding debt funds which have no single maturity date, by contractual maturity is shown in the following table. 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)
July 28, 2017
Due in one year or less
$
888

Due after one year through five years
2,681

Due after five years through ten years
3,203

Due after ten years
84

Total
$
6,856


14

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