v3.25.2
Retirement Benefit Plans
 12 Months Ended
Apr. 25, 2025
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 $466 million, $451 million, and $494 million in fiscal years 2025, 2024, and 2023, 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 25, 2025 and April 26, 2024, the funded status of the Company’s benefit plans was $440 million overfunded and $484 million overfunded, respectively.
During fiscal year 2023, the Company offered certain eligible U.S. employees voluntary early retirement packages, resulting in charges of $94 million, primarily related to U.S. pension benefits. The charges were recognized in restructuring charges, net in the consolidated statements of income. See Note 4 for additional information on restructuring charges.
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 Benefits(1)
Non-U.S. Pension Benefits
 Fiscal YearFiscal Year
(in millions)2025202420252024
Accumulated benefit obligation at end of year:$3,235 $3,144 $1,685 $1,513 
Change in projected benefit obligation:    
Projected benefit obligation at beginning of year$3,194 $3,451 $1,604 $1,499 
Service cost52 61 43 42 
Interest cost174 162 52 53 
Employee contributions— — 10 9 
Plan curtailments, settlements, and amendments— — (2)(10)
Actuarial loss (gain)(2)
22 (245)21 116 
Benefits paid(173)(234)(59)(65)
Currency exchange rate changes and other— — 129 (41)
Projected benefit obligation at end of year$3,269 $3,194 $1,797 $1,604 
Change in plan assets:    
Fair value of plan assets at beginning of year$3,551 $3,398 $1,659 $1,614 
Actual return on plan assets200 356 34 103 
Employer contributions31 32 45 40 
Employee contributions— — 10 9 
Plan settlements— — (2)(7)
Benefits paid(173)(234)(59)(65)
Currency exchange rate changes and other— — 138 (36)
Fair value of plan assets at end of year$3,610 $3,551 $1,823 $1,659 
Funded status at end of year:    
Fair value of plan assets$3,610 $3,551 $1,823 $1,659 
Benefit obligations3,269 3,194 1,797 1,604 
Over funded status of the plans341 357 27 54 
Recognized asset$341 $357 $27 $54 
Amounts recognized on the consolidated
balance sheets consist of:
Non-current assets$591 $617 $322 $296 
Current liabilities(29)(30)(7)(7)
Non-current liabilities(221)(230)(289)(235)
Recognized asset$341 $357 $27 $54 
Amounts recognized in accumulated other
comprehensive loss:
Prior service credit$(14)$(16)$(3)$(3)
Net actuarial loss602 534 230 161 
Ending balance$588 $517 $226 $158 
(1)In April 2020, the Company announced the freezing of the U.S. pension benefits beginning Plan year 2028. Employees will continue to earn benefits as required by the Medtronic Retirement Plan until April 30, 2027, after which date benefits will no longer be earned and employees will earn benefits through the Medtronic Savings and Investment Plan.
(2)Actuarial gains and losses result from changes in actuarial assumptions (such as changes in the discount rate and revised mortality rates). The actuarial gains and losses were primarily driven by increases and decreases in discount rates, respectively.
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 25, 2025 and April 26, 2024. 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)20252024
Accumulated benefit obligation$813 $773 
Projected benefit obligation849 809 
Plan assets at fair value347 334 
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)20252024
Projected benefit obligation$1,470 $1,321 
Plan assets at fair value924 819 
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)202520242023202520242023
Service cost$52 $61 $77 $43 $42 $43 
Interest cost174 162 142 52 53 38 
Expected return on plan assets(264)(261)(224)(68)(72)(58)
Amortization of prior service cost(2)(2)— — (1)(1)
Amortization of net actuarial loss (gain)16 18 20 1 (1)2 
Settlement and curtailment (gain) loss— — — — (3)2 
Special termination benefits— — 74 — — — 
Net periodic benefit (credit) cost$(24)$(22)$89 $28 $18 $26 
Components of net periodic benefit cost other than the service component are recognized in other non-operating income, net in the consolidated statements of income.
The other changes in plan assets and projected benefit obligations recognized in other comprehensive (loss) income for fiscal year 2025 are as follows:
(in millions)U.S. Pension
Benefits		Non-U.S.
Pension
Benefits
Net actuarial loss$85 $54 
Amortization of prior service cost2 — 
Amortization and settlement recognition of actuarial (gain) loss(16)1 
Effect of exchange rates— 16 
Total recognized in other comprehensive loss71 69 
Total recognized in net periodic benefit cost and other comprehensive loss$47 $97 
The actuarial assumptions are as follows:

 U.S. Pension BenefitsNon-U.S. Pension Benefits
 Fiscal YearFiscal Year
 202520242023202520242023
Critical assumptions – projected benefit obligation:      
Discount rate
5.24% - 5.76%
5.54% - 5.75%
4.73% - 4.99%
1.21% - 24.40%
1.40% - 26.40%
1.30% - 10.70%
Rate of compensation increase3.90 %3.90 %3.90 %2.89 %2.85 %2.75 %
Critical assumptions – net periodic benefit cost:      
Discount rate – benefit obligation
5.54% - 5.75%
4.73% - 4.99%
4.23% - 4.48%
1.40% - 26.40%
1.30% - 10.70%
0.60% - 25.40%
Discount rate – service cost
5.53% - 5.82%
4.68% - 5.07%
4.12% - 4.51%
1.40% - 26.40%
1.30% - 10.70%
0.60% - 25.40%
Discount rate – interest cost
5.51% - 5.63%
4.73% - 4.90%
3.90% - 4.23%
1.40% - 26.40%
1.30% - 10.70%
0.60% - 25.40%
Expected return on plan assets
6.40% - 8.10%
6.40% - 8.10%
5.30% - 7.20%
3.80 %4.07 %3.48 %
Rate of compensation increase3.90 %3.90 %3.90 %2.85 %2.75 %2.70 %
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 25, 2025 for the plans are 42% equity securities, 35% debt securities, and 23% other.
The plans did not hold any investments in the Company’s ordinary shares at April 25, 2025 or April 26, 2024.
The Company’s U.S. plans target asset allocations at April 25, 2025, compared to the U.S. plans actual asset allocations at April 25, 2025 and April 26, 2024 by asset category, are as follows:
U.S. PlansTarget AllocationActual Allocation
 
April 25, 2025
April 25, 2025
April 26, 2024
Asset Category:
Equity securities34 %39 %39 %
Debt securities51 40 40 
Other15 21 21 
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: Short-term investments include money market funds. These investments are 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, either daily or monthly depending on the investment, at market close. The net asset values are reported by the investment manager based on the valuation of the underlying assets held by the fund, less its liabilities. The net asset values are not publicly reported, and funds are valued at the net asset value practical expedient.
Partnership units: Partnership units include investment partnerships that provide exposure to long/short equity, absolute return strategies, private equity investments, and real estate investments. The net asset values are reported by the investment manager based on the valuation of the underlying assets held by the partnerships, less its liabilities. The net asset values are not publicly reported, and funds are valued at the net asset value practical expedient.
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.
Measurement using net asset value as a practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported net asset value.
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 25, 2025 and April 26, 2024.
U.S. Pension Benefits
 Fair Value at 
 Fair Value Measurements
Using Inputs Considered as		Investments Measured at Net Asset Value
(in millions)April 25, 2025Level 1Level 2Level 3
Short-term investments$70 $70 $— $— $— 
Mutual funds92 92 — — — 
Equity commingled trusts1,011 — — — 1,011 
Fixed income commingled trusts1,296 — — — 1,296 
Partnership units1,142 — — — 1,142 
$3,610 $162 $— $— $3,448 
 Fair Value atFair Value Measurements
Using Inputs Considered as		Investments Measured at Net Asset Value
(in millions)April 26, 2024Level 1Level 2Level 3
Short-term investments$80 $80 $— $— $— 
Mutual funds106 106 — — — 
Equity commingled trusts942 — — — 942 
Fixed income commingled trusts1,273 — — — 1,273 
Partnership units1,151 — — — 1,151 
$3,551 $186 $— $— $3,366 

Non-U.S. Pension Benefits
 Fair Value atFair Value Measurements
Using Inputs Considered as		Investments Measured at Net Asset Value
(in millions)April 25, 2025Level 1Level 2Level 3
Registered investment companies$1,775 $— $— $— $1,775 
Insurance contracts48 — — 48 — 
$1,823 $— $— $48 $1,775 
 Fair Value atFair Value Measurements
Using Inputs Considered as		Investments Measured at Net Asset Value
(in millions)April 26, 2024Level 1Level 2Level 3
Registered investment companies$1,617 $— $— $— $1,617 
Insurance contracts42 — — 42 — 
$1,659 $— $— $42 $1,617 
Non-U.S. pension benefit assets that are valued using significant unobservable inputs (Level 3) was $48 million and $42 million as of April 25, 2025 and April 26, 2024, respectively.

The Company reviews the fair value hierarchy classification on an annual basis. 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 25, 2025 and April 26, 2024.
Retirement Benefit Plan Funding It is the Company’s policy to fund retirement costs within the limits of allowable tax deductions. During fiscal year 2025, the Company made discretionary contributions of approximately $31 million to the U.S. pension plan. Internationally, the Company contributed approximately $45 million for pension benefits during fiscal year 2025. The Company anticipates that it will make contributions of $29 million and $55 million to its U.S. pension benefit plans and non-U.S. pension benefit plans, respectively, in fiscal year 2026. 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 2026 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
2026$192 $77 
2027201 71 
2028212 76 
2029219 81 
2030227 85 
2031 – 20351,191 483 
Post-retirement Benefit Plans The net periodic benefit cost associated with the Company’s post-retirement benefit plans was income of $16 million, $16 million, and $11 million in fiscal years 2025, 2024, and 2023, respectively. The Company’s projected benefit obligation for all post-retirement benefit plans was $231 million and $235 million at April 25, 2025 and April 26, 2024, respectively. The Company’s fair value of plan assets for all post-retirement benefit plans was $303 million and $308 million at April 25, 2025 and April 26, 2024, respectively. The post-retirement benefit plan assets at both April 25, 2025 and April 26, 2024 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 $478 million, $471 million, and $390 million in fiscal years 2025, 2024, and 2023, respectively.