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Retirement Benefit Plans
 12 Months Ended
Apr. 29, 2022
Retirement Benefits [Abstract]  
Retirement Benefit Plans Retirement Benefit Plans
The Company sponsors various retirement benefit plans, including defined benefit pension plans, post-retirement medical plans, defined contribution savings plans, and termination indemnity plans, covering substantially all U.S. employees and many employees outside the U.S. The net expense related to these plans was $459 million, $668 million, and $467 million in fiscal years 2022, 2021, and 2020, respectively.
In the U.S., the Company maintains qualified pension plans designed to provide guaranteed minimum retirement benefits to all eligible U.S. participants. Pension coverage for non-U.S. employees is provided, to the extent deemed appropriate, through separate plans. In addition to the benefits provided under the qualified pension plan, retirement benefits associated with wages in excess of the IRS allowable limits are provided to certain employees under a non-qualified plan. U.S. and Puerto Rico employees are also eligible to receive a medical benefit component, in addition to normal retirement benefits, through the Company’s post-retirement benefits.
At April 29, 2022 and April 30, 2021, the funded status of the Company’s benefit plans was $74 million overfunded and $705 million underfunded, respectively.
During fiscal year 2021, as part of the Simplification restructuring program, the Company offered certain eligible U.S. employees voluntary early retirement packages, resulting in incremental expense of $97 million recognized. Of this amount, $73 million related to U.S. pension benefits, $11 million related to defined contribution plans, $11 million related to U.S. post-retirement benefits, and $2 million related to cash payments and administrative fees. See Note 4 for additional information on the Simplification restructuring program.
As of April 24, 2020, the Company announced the freezing of U.S. pension benefits beginning in 2027. Employees will continue to earn benefits as required by the plan until April 30, 2027, after which date benefits will no longer be earned and employees will earn benefits under a new defined contribution structure. The Company recognized curtailment benefits of $94 million in fiscal year 2020 as a result of this change.
Defined Benefit Pension Plans The change in benefit obligation and funded status of the Company’s U.S. and Non-U.S. pension benefits are as follows:
 U.S. Pension BenefitsNon-U.S. Pension Benefits
 Fiscal YearFiscal Year
(in millions)2022202120222021
Accumulated benefit obligation at end of year:$3,396 $3,786 $1,638 $2,035 
Change in projected benefit obligation:    
Projected benefit obligation at beginning of year$3,979 $3,723 $2,294 $2,024 
Service cost98 106 64 70 
Interest cost102 109 26 28 
Employee contributions— — 12 12 
Plan curtailments and settlements— — (11)(4)
Actuarial (gain) loss(1)
(513)99 (394)6 
Benefits paid(141)(129)(48)(41)
Special termination benefits— 73 — — 
Currency exchange rate changes and other— — (203)200 
Projected benefit obligation at end of year$3,526 $3,979 $1,740 $2,294 
Change in plan assets:    
Fair value of plan assets at beginning of year$3,660 $2,982 $1,900 $1,404 
Actual return on plan assets15 715 (12)232 
Employer contributions24 95 70 149 
Employee contributions— — 12 12 
Plan settlements— — (1)(4)
Benefits paid(141)(129)(48)(41)
Currency exchange rate changes and other— — (188)149 
Fair value of plan assets at end of year$3,559 $3,660 $1,732 $1,900 
Funded status at end of year:    
Fair value of plan assets$3,559 $3,660 $1,732 $1,900 
Benefit obligations3,526 3,979 1,740 2,294 
Over (under) funded status of the plans33 (319)(8)(394)
Recognized asset (liability)$33 $(319)$(8)$(394)
Amounts recognized on the consolidated
balance sheets consist of:
Non-current assets$313 $110 $240 $48 
Current liabilities(21)(20)(6)(6)
Non-current liabilities(259)(408)(242)(436)
Recognized asset (liability)$33 $(319)$(8)$(394)
Amounts recognized in accumulated other
comprehensive loss:
Prior service cost (credit)$— $— $(4)$(6)
Net actuarial loss854 1,220 161 530 
Ending balance$854 $1,220 $157 $524 
(1)Actuarial gains and losses result from changes in actuarial assumptions (such as changes in the discount rate and revised mortality rates). The actuarial gain in fiscal year 2022 was primarily related to increases in discount rates. The actuarial loss in fiscal year 2021 was primarily related to decreases in discount rates.
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 at April 29, 2022 and April 30, 2021. U.S. and non-U.S. pension plans with accumulated benefit obligations in excess of plan assets consist of the following:
 Fiscal Year
(in millions)20222021
Accumulated benefit obligation$830 $5,089 
Projected benefit obligation880 5,198 
Plan assets at fair value356 4,561 
U.S. and non-U.S. pension plans with projected benefit obligations in excess of plan assets consist of the following:
 Fiscal Year
(in millions)20222021
Projected benefit obligation$907 $5,921 
Plan assets at fair value379 5,159 
The net periodic benefit cost of the plans includes the following components:
 U.S. Pension BenefitsNon-U.S. Pension Benefits
 Fiscal YearFiscal Year
(in millions)202220212020202220212020
Service cost$98 $106 $106 $64 $70 $59 
Interest cost102 109 126 26 28 28 
Expected return on plan assets(226)(242)(225)(64)(59)(58)
Amortization of prior service cost— 1 1 (1)(1)(1)
Amortization of net actuarial loss64 69 56 22 25 14 
Settlement and curtailment (gain) loss— — — (10)1 — 
Special termination benefits— 73 — — — — 
Net periodic benefit cost$39 $116 $64 $37 $64 $42 
The other changes in plan assets and projected benefit obligations recognized in other comprehensive income for fiscal year 2022 are as follows:
(in millions)U.S. Pension
Benefits		Non-U.S.
Pension
Benefits
Net actuarial gain$(303)$(317)
Amortization of prior service credit— 1 
Amortization and settlement recognition of actuarial loss(64)(22)
Effect of exchange rates— (29)
Total recognized in other comprehensive income(367)(367)
Total recognized in net periodic benefit cost and other comprehensive income$(328)$(331)
The actuarial assumptions are as follows:

 U.S. Pension BenefitsNon-U.S. Pension Benefits
 Fiscal YearFiscal Year
 202220212020202220212020
Critical assumptions – projected benefit obligation:      
Discount rate
4.23% - 4.48%
2.80% - 3.50%
3.10% - 3.70%
0.60% - 25.40%
0.30% - 13.30%
0.30% - 13.30%
Rate of compensation increase4.83 %4.83 %3.90 %2.70 %2.90 %2.91 %
Critical assumptions – net periodic benefit cost:      
Discount rate – benefit obligation
2.80% - 3.46%
3.10% - 3.70%
3.90% - 4.30%
0.25% - 12.80%
0.30% - 13.90%
0.40% - 13.90%
Discount rate – service cost
2.50% - 3.51%
2.60% - 3.90%
3.70% - 4.00%
0.24% - 12.80%
0.30% - 13.90%
0.40% - 13.90%
Discount rate – interest cost
2.08% - 2.87%
2.80% - 3.20%
3.50% - 4.30%
0.08% - 12.80%
0.30% - 13.90%
0.40% - 13.90%
Expected return on plan assets
5.60% - 7.40%
7.50 %7.90 %3.67 %3.78 %4.19 %
Rate of compensation increase
3.90% - 4.83%
3.90 %3.90 %2.90 %2.91 %2.87 %
The Company utilizes a full yield curve approach methodology to estimate the service and interest cost components of net periodic pension cost and net periodic post-retirement benefit cost for the Company’s pension and other post-retirement benefits. The full yield curve approach applies specific spot rates along the yield curve to their underlying projected cash flows in estimation of the cost components. The current yield curves represent high quality, long-term fixed income instruments.
The expected long-term rate of return on plan assets assumptions are determined using a building block approach, considering historical averages and real returns of each asset class. In certain countries, where historical returns are not meaningful, consideration is given to local market expectations of long-term returns.
Retirement Benefit Plan Investment Strategy The Company sponsors trusts that hold the assets for U.S. pension plans and other U.S. post-retirement benefit plans, primarily retiree medical benefits. For investment purposes, the Medtronic U.S. pension and other U.S. post-retirement benefit plans employ similar investment strategies with different asset allocation targets.
The Company has a Qualified Plan Committee (the Plan Committee) that sets investment guidelines for U.S. pension plans and other U.S. post-retirement benefit plans with the assistance of external consultants. These guidelines are established based on market conditions, risk tolerance, funding requirements, and expected benefit payments. The Plan Committee also oversees the investment allocation process, selects the investment managers, and monitors asset performance. As pension liabilities are long-term in nature, the Company employs a long-term total return approach to maximize the long-term rate of return on plan assets for a prudent level of risk. An annual analysis on the risk versus the return of the investment portfolio is conducted to justify the expected long-term rate of return assumption.
The investment portfolios contain a diversified allocation of investment categories, including equities, fixed income securities, hedge funds, and private equity. Securities are also diversified in terms of domestic and international, short- and long-term, growth and value styles, large cap and small cap stocks, and active and passive management.
Outside the U.S., pension plan assets are typically managed by decentralized fiduciary committees. There is significant variation in policy asset allocation from country to country. Local regulations, funding rules, and financial and tax considerations are part of the funding and investment allocation process in each country. The weighted average target asset allocations at April 29, 2022 for the plans are 41% equity securities, 33% debt securities, and 26% other.
The plans did not hold any investments in the Company’s ordinary shares at April 29, 2022 or April 30, 2021.
The Company’s U.S. plans target asset allocations at April 29, 2022, compared to the U.S. plans actual asset allocations at April 29, 2022 and April 30, 2021 by asset category, are as follows:
U.S. PlansTarget AllocationActual Allocation
 
April 29, 2022
April 29, 2022
April 30, 2021
Asset Category:
Equity securities34 %36 %39 %
Debt securities51 45 32 
Other15 19 29 
Total100 %100 %100 %
Strong performance on equity securities during the fiscal year resulted in asset allocations different than targets. Management expects to move the allocations closer to target over the intermediate term.

Retirement Benefit Plan Asset Fair Values The following is a description of the valuation methodologies used for retirement benefit plan assets measured at fair value:
Short-term investments: Valued at the closing price reported in the active markets in which the individual security is traded.
Mutual funds: Comprised of investments in equity and fixed income securities held in pooled investment vehicles. The valuations of mutual funds are based on the respective net asset values which are determined by the fund daily at market close. The net asset values are calculated based on the valuation of the underlying assets which are determined using observable inputs. The net asset values are publicly reported.
Equity commingled trusts: Comprised of investments in equity securities held in pooled investment vehicles. The valuations of equity commingled trusts are based on the respective net asset values which are determined by the fund daily at market close. The net asset values are calculated based on the valuation of the underlying assets which are determined using observable inputs. The net asset values are not publicly reported, and funds are valued at the net asset value practical expedient.
Fixed income commingled trusts: Comprised of investments in fixed income securities held in pooled investment vehicles. The valuations of fixed income commingled trusts are based on the respective net asset values which are determined by the fund daily at market close. The net asset values are calculated based on the valuation of the underlying assets which are determined using observable inputs. The net asset values are not publicly reported, and funds are valued at the net asset value practical expedient.
Partnership units: Valued based on the year-end net asset values of the underlying partnerships. The net asset values of the partnerships are based on the fair values of the underlying investments of the partnerships. Quoted market prices are used to value the underlying investments of the partnerships, where the partnerships consist of the investment pools which invest primarily in common stocks. Partnership units include partnerships, private equity investments, and real asset investments. Partnerships primarily include long/short equity and absolute return strategies. These investments may be redeemed monthly with notice periods ranging from 45 to 95 days. At April 29, 2022, there are no funds in the process of liquidation. Private equity investments consist of common stock and debt instruments of private companies. For private equity funds, the sum of the unfunded commitments at April 29, 2022 is $204 million, and the estimated liquidation period of these funds is expected to be one to 15 years. Real asset investments consist of commodities, derivatives, Real Estate Investment Trusts, and illiquid real estate holdings. These investments have redemption and liquidation periods ranging from 30 days to 10 years. At April 29, 2022, there are no real estate investments in the process of liquidation. Valuation procedures are utilized to arrive at fair value if a quoted market price is not available for a partnership investment.
Registered investment companies: Valued at net asset values which are not publicly reported. The net asset values are calculated based on the valuation of the underlying assets. The underlying assets are valued at the quoted market prices of shares held by the plan at year-end in the active market on which the individual securities are traded.
Insurance contracts: Comprised of investments in collective (group) insurance contracts, consisting of individual insurance policies. The policyholder is the employer, and each member is the owner/beneficiary of their individual insurance policy. These policies are a part of the insurance company’s general portfolio and participate in the insurer’s profit-sharing policy on an excess yield basis.
The methods described above may produce fair values that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
The following tables provide information by level for the retirement benefit plan assets that are measured at fair value, as defined by U.S. GAAP. Certain investments for which the fair value is measured using the net asset value per share (or its equivalent) practical expedient are not presented within the fair value hierarchy. The fair value amounts presented for these investments are intended to permit reconciliation to the total fair value of plan assets at April 29, 2022 and April 30, 2021.
U.S. Pension Benefits
 Fair Value at 
 Fair Value Measurements
Using Inputs Considered as		Investments Measured at Net Asset Value
(in millions)April 29, 2022Level 1Level 2Level 3
Short-term investments$73 $73 $— $— $— 
Mutual funds125 125 — — — 
Equity commingled trusts1,281 — — — 1,281 
Fixed income commingled trusts1,069 — — — 1,069 
Partnership units1,011 — — 1,011 — 
$3,559 $197 $— $1,011 $2,350 

 Fair Value atFair Value Measurements
Using Inputs Considered as		Investments Measured at Net Asset Value
(in millions)April 30, 2021Level 1Level 2Level 3
Short-term investments$232 $232 $— $— $— 
Mutual funds99 99 — — — 
Equity commingled trusts1,420 — — — 1,420 
Fixed income commingled trusts1,050 — — — 1,050 
Partnership units860 — — 860 — 
$3,660 $331 $— $860 $2,470 

The following tables provide a reconciliation of the beginning and ending balances of U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3):
(in millions)Partnership Units
April 24, 2020
$625 
Total realized gains, net8 
Total unrealized gains, net89 
Purchases and sales, net139 
April 30, 2021
860 
Total realized gains, net28 
Total unrealized gains, net72 
Purchases and sales, net51 
April 29, 2022
$1,011 
Non-U.S. Pension Benefits
 Fair Value atFair Value Measurements
Using Inputs Considered as		Investments Measured at Net Asset Value
(in millions)April 29, 2022Level 1Level 2Level 3
Registered investment companies$1,689 $— $— $— $1,689 
Insurance contracts43 — — 43 — 
$1,732 $— $— $43 $1,689 
 Fair Value atFair Value Measurements
Using Inputs Considered as		Investments Measured at Net Asset Value
(in millions)April 30, 2021Level 1Level 2Level 3
Registered investment companies$1,850 $— $— $— $1,850 
Insurance contracts49 — — 49 — 
$1,900 $— $— $49 $1,850 
Non-U.S. pension benefit assets that are valued using significant unobservable inputs (Level 3) was $43 million and $49 million as of April 29, 2022 and April 30, 2021, respectively. The decrease in the fair value of the assets was due to insurance contracts being sold.

There were no transfers into or out of Level 3 for both the U.S. and non-U.S. pension plans during the fiscal years ended April 29, 2022 and April 30, 2021.
Retirement Benefit Plan Funding It is the Company’s policy to fund retirement costs within the limits of allowable tax deductions. During fiscal year 2022, the Company made discretionary contributions of approximately $24 million to the U.S. pension plan. Internationally, the Company contributed approximately $70 million for pension benefits during fiscal year 2022. The Company anticipates that it will make contributions of $21 million and $52 million to its U.S. pension benefit plans and non-U.S. pension benefit plans, respectively, in fiscal year 2023. Based on the guidelines under the U.S. Employee Retirement Income Security Act of 1974 and the various guidelines which govern the plans outside the U.S., the majority of anticipated fiscal year 2023 contributions will be discretionary. The Company believes that pension assets, returns on invested pension assets, and Company contributions will be able to meet its pension and other post-retirement obligations in the future.
Retiree benefit payments, which reflect expected future service, are anticipated to be paid as follows:
(in millions)Gross Payments
Fiscal YearU.S. Pension BenefitsNon-U.S. Pension Benefits
2023$150 $61 
2024160 55 
2025172 59 
2026182 59 
2027193 65 
2028 – 20321,110 367 
Total$1,966 $666 
Post-retirement Benefit Plans The net periodic benefit cost associated with the Company’s post-retirement benefit plans was income of $20 million, $6 million, and $15 million in fiscal years 2022, 2021, and 2020, respectively. The Company’s projected benefit obligation for all post-retirement benefit plans was $276 million and $337 million at April 29, 2022 and April 30, 2021, respectively. The Company’s fair value of plan assets for all post-retirement benefit plans was $325 million and $345 million at April 29, 2022 and April 30, 2021, respectively. The post-retirement benefit plan assets at both April 29, 2022 and April 30, 2021 primarily comprised of equity and fixed commingled trusts, consistent with the U.S. retirement benefit plan assets outlined in the fair value leveling tables above.
Defined Contribution Savings Plans The Company has defined contribution savings plans that cover substantially all U.S. employees and certain non-U.S. employees. The general purpose of these plans is to provide additional financial security during retirement by providing employees with an incentive to make regular savings. Company contributions to the plans are based on employee contributions
and Company performance. Expense recognized under these plans was $403 million, $495 million, and $376 million in fiscal years 2022, 2021, and 2020, respectively.
Effective May 1, 2005, the Company froze participation in the original defined benefit pension plan in the U.S. and implemented two new plans: an additional defined benefit pension plan, the Personal Pension Account (PPA), and a new defined contribution plan, the Personal Investment Account (PIA). Employees in the U.S. hired on or after May 1, 2005 but before January 1, 2016 had the option to participate in either the PPA or the PIA. Participants in the PPA receive an annual allocation of their salary and bonus on which they will receive an annual guaranteed rate of return, which is based on the ten-year Treasury bond rate. Participants in the PIA also receive an annual allocation of their salary and bonus; however, they are allowed to determine how to invest their funds among identified fund alternatives. The cost associated with the PPA is included in U.S. Pension Benefits in the tables presented earlier. The defined contribution cost associated with the PIA was approximately $48 million, $50 million, and $52 million in fiscal years 2022, 2021, and 2020, respectively.
Effective January 1, 2016, the Company froze participation in the existing defined benefit (PPA) and contribution (PIA) pension plans in the U.S. and implemented a new form of benefit under the existing defined contribution plan for legacy Covidien employees and employees in the U.S. hired on or after January 1, 2016 or rehired after July 1, 2020. Participants in the Medtronic Core Contribution (MCC) also receive an annual allocation of their salary and bonus and are allowed to determine how to invest their funds among identified fund alternatives. The defined contribution cost associated with the MCC was approximately $83 million, $73 million, and $66 million and in fiscal years 2022, 2021, and 2020, respectively.