SEC Filings

10-Q
MEDTRONIC PLC filed this Form 10-Q on 12/04/2017
Entire Document
 


charge in connection with the redemption of an intercompany minority interest. These net benefits were recorded within income tax (benefit) provision in the consolidated statement of income for the six months ended October 28, 2016.
LIQUIDITY AND CAPITAL RESOURCES
(in millions)
October 27, 2017
 
April 28, 2017
Working capital
$
14,666

 
$
10,316

Current ratio(1)
          2.4:1.0

 
1.7:1.0

Cash, cash equivalents, and current investments
$
13,526

 
$
13,708

Current debt obligations and long-term debt
$
29,072

 
$
33,441

(1)
The ratio of current assets to current liabilities, excluding current assets and current liabilities held for sale at April 28, 2017.
We believe our balance sheet and liquidity provide us with flexibility in the future. Approximately $5 billion of our cash, cash equivalents, and investments held by certain U.S.-controlled non-U.S. subsidiaries may not represent available liquidity for general corporate purposes. However, we believe our other existing cash, cash equivalents and investments, as well as our $3.5 billion revolving credit facility and related commercial paper program ($700 million of commercial paper outstanding at October 27, 2017), will satisfy our foreseeable operating needs for at least the next 12 months. We regularly review our capital needs and consider various investing and financing alternatives to support our requirements. 
 
 
Agency Rating(1)
 
 
October 27, 2017
 
April 28, 2017
Standard & Poor's Ratings Services
 
 
 
 
   Long-term debt
 
A
 
A
   Short-term debt
 
A-1
 
A-1
 
 
 
 
 
Moody's Investors Service
 
 
 
 
   Long-term debt
 
A3
 
A3
   Short-term debt
 
P-2
 
P-2
(1)
Agency ratings are subject to change, and there may be no assurance that an agency will continue to provide ratings and/or maintain its current ratings. A security rating is not a recommendation to buy, sell or hold securities, and may be subject to revision or withdrawal at any time by the rating agency, and each rating should be evaluated independently of any other rating.

Standard & Poor's Ratings Services (S&P) and Moody's Investors Service (Moody's) long-term debt ratings and short-term debt ratings at October 27, 2017 were unchanged as compared to the ratings at April 28, 2017. We do not expect the S&P and Moody's ratings to have a significant impact on our liquidity or future flexibility to access additional liquidity given our balance sheet and our $3.5 billion revolving credit facility and related commercial paper program.
We have future contractual obligations and other minimum commercial commitments that are entered into in the normal course of business. We believe our off-balance sheet arrangements do not have a material current or anticipated future effect on our consolidated earnings, financial position, and/or cash flows.
Note 17 to the consolidated financial statements provides information regarding amounts we have accrued related to legal proceedings. In accordance with U.S. GAAP, we record a liability in our consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. Actual settlements may be different than estimated and could have a material impact on our consolidated earnings, financial position, and/or cash flows.
We record tax liabilities in our consolidated financial statements for amounts that we expect to repatriate from subsidiaries (to the extent the repatriation would be subject to tax); however, no tax liabilities are recorded for amounts that we consider to be permanently reinvested. Our current plans do not foresee a need to repatriate funds that are designated as permanently reinvested in order to fund our operations or meet currently anticipated liquidity and capital investment needs. However, we evaluate our legal entity structure supporting our business operations, and to the extent such evaluation results in a change to our overall business structure, we may be required to accrue for additional tax obligations.
We have investments in marketable debt securities that are classified and accounted for as available-for-sale. Our debt securities include U.S. government and agency securities, corporate debt securities, mortgage-backed securities, other asset-backed securities, debt funds, and auction rate securities. Some of our investments may experience reduced liquidity due to changes in market

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