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)


15. Accumulated Other Comprehensive (Loss) Income and Supplemental Equity Disclosure
The following table provides changes in AOCI, net of tax and by component.
(in millions)
Unrealized Gain (Loss) on Available-for-Sale Securities
 
Cumulative Translation Adjustment
 
Net Change in Retirement Obligations
 
Unrealized Gain (Loss) on Derivative Financial Instruments
 
Total Accumulated Other Comprehensive (Loss) Income
April 28, 2017
$
(69
)
 
$
(1,452
)
 
$
(1,129
)
 
$
37

 
$
(2,613
)
Other comprehensive income (loss) before reclassifications
39

 
831

 
(17
)
 
(159
)
 
694

Reclassifications
(9
)
 

 
16

 
(12
)
 
(5
)
Other comprehensive income (loss)
30

 
831

 
(1
)
 
(171
)
 
689

July 28, 2017
$
(39
)
 
$
(621
)
 
$
(1,130
)
 
$
(134
)
 
$
(1,924
)
 
 
 
 
 
 
 
 
 
 
(in millions)
Unrealized Gain (Loss) on Available-for-Sale Securities
 
Cumulative Translation Adjustment
 
Net Change in Retirement Obligations
 
Unrealized Gain (Loss) on Derivative Financial Instruments
 
Total Accumulated Other Comprehensive (Loss) Income
April 29, 2016
$
(107
)
 
$
(474
)
 
$
(1,197
)
 
$
(90
)
 
$
(1,868
)
Other comprehensive income (loss) before reclassifications
116

 
(350
)
 

 
62

 
(172
)
Reclassifications
(1
)
 

 
25

 
(8
)
 
16

Other comprehensive income (loss)
115

 
(350
)
 
25

 
54

 
(156
)
July 29, 2016
$
8

 
$
(824
)
 
$
(1,172
)
 
$
(36
)
 
$
(2,024
)

The income tax on gains and losses on available-for-sale securities in other comprehensive income before reclassifications during the three months ended July 28, 2017 and July 29, 2016 was an expense of $17 million and $52 million, respectively. During the three months ended July 28, 2017, realized gains and losses on available-for-sale securities reclassified from AOCI were reduced by income taxes of $4 million. During the three months ended July 29, 2016, there was no income tax impact on realized gains and losses on available-for-sale securities reclassified from AOCI. When realized, gains and losses on available-for-sale securities reclassified from AOCI are recognized within other expense, net. Refer to Note 6 to the consolidated financial statements for additional information.

Taxes are not provided on cumulative translation adjustments as substantially all translation adjustments relate to earnings that are intended to be indefinitely reinvested outside the U.S.

The net change in retirement obligations in other comprehensive income includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost. The income tax on the net change in retirement obligations in other comprehensive income before reclassifications during the three months ended July 28, 2017 was a benefit of $4 million. During the three months ended July 29, 2016, there was no income tax impact on the net change in retirement obligations in other comprehensive income before reclassifications. During the three months ended July 28, 2017 and July 29, 2016, the gains and losses on defined benefit and pension items reclassified from AOCI were reduced by income taxes of $8 million and $2 million, respectively. Refer to Note 14 to the consolidated financial statements for additional information.

The income tax on unrealized gains and losses on derivative financial instruments in other comprehensive income before reclassifications during the three months ended July 28, 2017 and July 29, 2016 was a benefit of $91 million and an expense of $36 million, respectively. During the three months ended July 28, 2017 and July 29, 2016, gains and losses on derivative financial instruments reclassified from AOCI were reduced by income taxes of $8 million and $6 million, respectively. When realized, cash flow hedge gains and losses reclassified from AOCI are recognized within other expense, net, and forward starting interest rate derivative financial instrument gains and losses reclassified from AOCI are recognized within interest expense, net. Refer to Note 8 to the consolidated financial statements for additional information.


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