MDT » Topics » Interest Income, Net

This excerpt taken from the MDT 10-K filed Jun 24, 2008.
interest income, net in the consolidated statements of earnings.

 

8.

Derivatives and Foreign Exchange Risk Management   

 

The Company uses operational and economic hedges, as well as forward exchange derivative contracts to manage the impact of foreign exchange rate changes on earnings and cash flows. In order to reduce the uncertainty of foreign exchange rate movements, the Company enters into derivative instruments, primarily forward exchange contracts, to manage its exposure related to foreign exchange rate changes. These contracts are designed to hedge anticipated foreign currency transactions and changes in the value of specific assets, liabilities, net investments, and probable commitments. At inception of the forward contract, the derivative is designated as either a freestanding derivative, net investment hedge, or cash flow hedge. Principal currencies hedged are the Euro and the Japanese Yen. The Company does not enter into forward exchange derivative contracts for speculative purposes.

 

Notional amounts of these contracts outstanding at April 25, 2008 and April 27, 2007 were $6,613 and $5,372, respectively. All derivative instruments are recorded at fair value on the consolidated balance sheets, as a component of

This excerpt taken from the MDT 10-Q filed Mar 4, 2008.

Interest Income, Net

 

For the three and nine months ended January 25, 2008, we generated interest income, net of $9 million and $114 million, respectively, as compared to interest income, net of $36 million and $113 million, respectively, for the same periods of the prior fiscal year. The decrease in the three months ended January 25, 2008 is the result of the financing of the Kyphon acquisition. The acquisition was financed through a combination of approximately $3.303 billion cash on hand causing a decrease in interest income, the issuance of $600 million short-term commercial paper and borrowing $300 million through a new long-term unsecured revolving credit facility both causing increases to interest expense.

 

 







40



Table of Contents

This excerpt taken from the MDT 10-Q filed Dec 4, 2007.

Interest Income, Net

 

For the three and six months ended October 26, 2007, we generated interest income, net of $61 and $105 million, respectively, as compared to interest income, net of $37 and $76 million, respectively, for the same periods of the prior fiscal year. The increases for the three and six months ended October 26, 2007 are the result of higher rates of return on our investments as compared to the same periods of the prior fiscal year. Interest income continues to increase as we have maintained our ability to generate rates of returns on our investments that exceed the interest rates we are paying on our outstanding debt.

 

Going forward, we expect interest income, net to decrease in future quarters as we financed $3.3 billion of the $4.2 billion acquisition price of Kyphon on November 2, 2007 with cash on hand, thereby decreasing our future interest income, and financed the remainder of the purchase price, which will increase future interest expense. For additional information regarding the acquisition of Kyphon, see Note 18 to the condensed consolidated financial statements.

 

33




Table of Contents

This excerpt taken from the MDT 10-Q filed Sep 5, 2007.

Interest Income, Net

 

For the three months ended July 27, 2007, we generated net interest income of $44 million, an increase of $5 million, as compared to $39 million for the same period of the prior fiscal year. The increase for the three months ended July 27, 2007 is the result of higher rates of return on our investments as compared to the same period of the prior fiscal year. Interest income continues to increase as we have maintained our ability to generate rates of returns on our investments that exceed the interest rates we are paying on our outstanding debt.

 

This excerpt taken from the MDT 10-K filed Jun 25, 2007.
interest income, net in the consolidated statements of earnings.

 

59



Table of Contents

8.

Interest Income, Net

 

Interest income and interest expense for fiscal years 2007, 2006 and 2005 are as follows:

 

 

 

Fiscal Year

 

 

 

2007

 

2006

 

2005

 

Interest income

 

$

(382

)

$

(203

)

$

(100

)

Interest expense

 

 

228

 

 

116

 

 

55

 

Interest income, net

 

$

(154

)

$

(87

)

$

(45

)

 

9.

Shareholders’ Equity

 

This excerpt taken from the MDT 10-Q filed Mar 6, 2007.

Interest Income, Net

 

For the three and nine months ended January 26, 2007, we generated net interest income of $36 and $113 million, respectively, as compared to net interest income of $24 and $52 million, respectively, for the same periods of the prior fiscal year. The increases for the three and nine months ended January 26, 2007 are the result of the higher cash and cash investment balances as compared to the prior periods. Interest income continues to increase, as we have maintained our ability to generate rates of returns on our investments that exceed the interest rates we are paying on our outstanding debt.

 

This excerpt taken from the MDT 10-Q filed Dec 5, 2006.

Interest Income, Net

 

For the three and six months ended October 27, 2006, we generated net interest income of $37 and $76 million, respectively, as compared to net interest income of $14 and $29 million, respectively, for the same periods of the prior fiscal year. The increases for the three and six months ended October 27, 2006 are the result of the higher cash and cash investment balances as compared to the prior periods. Interest income continues to increase, as we have maintained our ability to generate rates of returns on our investments that exceed the interest rates we are paying on our outstanding debt.

 

"Interest Income, Net" elsewhere:

Cynosure (CYNO)
Varian Medical Systems (VAR)
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki