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)


At both July 28, 2017 and April 28, 2017, the market value of outstanding interest rate swap agreements was an unrealized gain of $41 million, and the market value of the hedged item was an unrealized loss of $41 million. The amounts were recorded in other assets with the offsets recorded in long-term debt on the consolidated balance sheets.
No significant hedge ineffectiveness was recognized as a result of these fair value hedges for the three months ended July 28, 2017 and July 29, 2016. In addition, the Company did not recognize any gains or losses during the three months ended July 28, 2017 or July 29, 2016 on firm commitments that no longer qualify as fair value hedges.
Balance Sheet Presentation
The following tables summarize the balance sheet classification and fair value of derivative instruments included in the consolidated balance sheets at July 28, 2017 and April 28, 2017. The fair value amounts are presented on a gross basis and are segregated between derivatives that are designated and qualify as hedging instruments and those that are not designated and do not qualify as hedging instruments, and are further segregated by type of contract within those two categories.
 
July 28, 2017
 
Derivative Assets
 
Derivative Liabilities
(in millions)
Balance Sheet Classification
 
Fair Value
 
Balance Sheet Classification
 
Fair Value
Derivatives designated as hedging instruments
 
 
 

 
 
 
 

Currency exchange rate contracts
Prepaid expenses and other current assets
 
$
60

 
Other accrued expenses
 
$
124

Interest rate contracts
Other assets
 
41

 
Other liabilities
 

Currency exchange rate contracts
Other assets
 
25

 
Other liabilities
 
76

Total derivatives designated as hedging instruments
 
 
$
126

 
 
 
$
200

Derivatives not designated as hedging instruments
 
 
 

 
 
 
 

Currency exchange rate contracts
Prepaid expenses and other current assets
 
$
22

 
Other accrued expenses
 
$
68

Total return swap
Prepaid expenses and other current assets
 
6

 
Other accrued expenses
 

Cross currency interest rate contracts
Other assets
 
5

 
Other liabilities
 
10

Total derivatives not designated as hedging instruments
 
 
33

 
 
 
78

Total derivatives
 
 
$
159

 
 
 
$
278

 
April 28, 2017
 
Asset Derivatives
 
Liability Derivatives
(in millions)
Balance Sheet Classification
 
Fair Value
 
Balance Sheet Classification
 
Fair Value
Derivatives designated as hedging instruments
 
 
 

 
 
 
 

Currency exchange rate contracts
Prepaid expenses and other current assets
 
$
152

 
Other accrued expenses
 
$
43

Interest rate contracts
Other assets
 
41

 
Other liabilities
 

Currency exchange rate contracts
Other assets
 
48

 
Other liabilities
 
14

Total derivatives designated as hedging instruments
 
 
$
241

 
 
 
$
57

Derivatives not designated as hedging instruments
 
 
 

 
 
 
 

Currency exchange rate contracts
Prepaid expenses and other current assets
 
16

 
Other accrued expenses
 
36

Cross currency interest rate contracts
Other assets
 
5

 
Other liabilities
 
11

Total derivatives not designated as hedging instruments
 
 
21

 
 
 
47

Total derivatives
 
 
$
262

 
 
 
$
104


19

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