Restricted Stock Awards The following table summarizes restricted stock award

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Restricted Stock Awards The following table summarizes restricted stock award Powered By Docstoc
					Restricted Stock Awards The following table summarizes restricted stock award activity during fiscal years 2008, 2007 and 2006:

                                                                                                          Fiscal Year
                                                                          2008                                 2007                                2006
                                                             Awards               Wtd. Avg.           Awards            Wtd. Avg.         Awards          Wtd. Avg.
                                                         (in thousands)           Grant Price     (in thousands)        Grant Price   (in thousands)      Grant Price
Nonvested, beginning balance                                 3,982                  $50.16            2,008               $51.64          1,062             $48.52
Granted                                                      2,200                   47.74            2,188                48.19          1,063              54.62
Assumed from Kyphon acquisition                                402                   46.88               —                    —              —                  —
Reinvested dividend equivalent units                             4                   49.53                4                50.33              3              54.62
Vested                                                        (492)                  47.60             (112)               47.57            (41)             49.96
Forfeited                                                     (307)                  49.88             (106)               51.16            (79)             50.68
Nonvested at year-end                                        5,789                  $49.24            3,982               $50.16          2,008             $51.64


  Unrecognized compensation expense related to restricted stock                         Deferred taxes arise because of the different treatment of transactions
awards as of April 25, 2008 was $178, pre-tax, is expected to be                      for financial statement accounting and income tax accounting, known
recognized over a weighted average period of 2.5 years and will be                    as “temporary differences.” The Company records the tax effect of these
adjusted for any future changes in estimated forfeitures.                             temporary differences as “deferred tax assets” and “deferred tax
                                                                                      liabilities.” Deferred tax assets generally represent items that can be
12. Income Taxes                                                                      used as a tax deduction or credit in a tax return in future years for which
The provision for income taxes is based on earnings before income                     the Company has already recorded the tax benefit in the consolidated
taxes reported for financial statement purposes. The components of                    statements of earnings. The Company establishes valuation allowances
earnings before income taxes are:                                                     for deferred tax assets when the amount of expected future taxable
                                                         Fiscal Year                  income is not likely to support the use of the deduction or credit. The
                                                2008        2007         2006         Company has established valuation allowances related to tax benefits
U.S.                                            $ 713      $1,579        $1,581       from certain acquisitions that, if not ultimately required, will result in a
International                                    2,172      1,936         1,580
                                                                                      reduction to goodwill; these allowances were $15 and $16 at April 25,
Earnings before income taxes                    $2,885     $3,515        $3,161
                                                                                      2008 and April 27, 2007, respectively. The Company has established
                                                                                      valuation allowances for capital loss carryforwards and deferred taxes
  The provision for income taxes consists of:
                                                           Fiscal Year                which are capital in nature in the amount of $122 and $35 at April 25,

                                                   2008      2007        2006
                                                                                      2008 and April 27, 2007, respectively. The capital loss carryforwards
                                                                                      expire within five years. In addition, the Company has state loss and
Current tax expense:
  U.S.                                             $458      $ 712       $471         credit carryforwards and non-U.S. tax losses of approximately $40
  International                                     267        239         11         available at both April 25, 2008 and April 27, 2007. These carryforwards
Total current tax expense                           725        951        482         are offset by valuation allowances and expire at various points in time,
Deferred tax expense (benefit):
                                                                                      from within three years to no expiration date. These additional
  U.S.                                              (40)      (216)       159
  International                                     (31)       (22)       (27)        allowances would result in a reduction to the provision for income taxes
Net deferred tax expense (benefit)                  (71)      (238)       132         in the consolidated statement of earnings, if they are ultimately not

Total provision for income taxes                   $654      $ 713       $614         required. Deferred tax liabilities generally represent tax expense
                                                                                      recognized in the consolidated financial statements for which payment
                                                                                      has been deferred or expense has already been taken as a deduction




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