FORM 10-K/A
(AMENDMENT NO. 1)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------
Amendment No. 1 to annual report pursuant to Section 13 or 15(d) of the
Securities Act of 1934 for the fiscal year ended April 30, 1998.
Commission File No. 1-7707
MEDTRONIC, INC.
Minnesota 41-0793183
(State of Incorporation) (I.R.S. Employer Identification No.)
7000 Central Avenue N.E.
Minneapolis, Minnesota 55432
(Address of principal executive offices)
Telephone number: (612) 514-4000
The undersigned registrant hereby amends Part IV, Item 14(a)3, entitled
"Exhibits", of its Annual Report on Form 10-K for fiscal 1998 to add the
following exhibits:
Exhibit No.
- -----------
99.1 Form 11-K for the Medtronic, Inc. and Participating Employers
Supplemental Retirement Plan for the year ended April 30, 1998.
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this amendment to be signed on its
behalf by the undersigned, thereunto duly authorized.
MEDTRONIC, INC.
Dated: October 23, 1998 By: /s/ William W. George
---------------------------
William W. George, Chairman
and Chief Executive Officer
<PAGE>
INDEX OF EXHIBITS
EXHIBITS
--------
99.1 Form 11-K for the Medtronic, Inc. and Participating Employers
Supplemental Retirement Plan for the year ended April 30, 1998.
EXHIBIT 99.1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(mark one)
(X) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 For the fiscal year ended April 30, 1998 Or
( ) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
Commission File Nos.: 33-37529 and 33-44230
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
MEDTRONIC, INC. AND PARTICIPATING EMPLOYERS
SUPPLEMENTAL RETIREMENT PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Medtronic, Inc.
7000 Central Avenue N.E.
Minneapolis, MN 55432
SIGNATURES
THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
MEDTRONIC, INC. AND PARTICIPATING
EMPLOYERS SUPPLEMENTAL RETIREMENT
PLAN
Dated: October 23, 1998 By: /s/ Janet S. Fiola
----------------------
Janet S. Fiola
Senior Vice President,
Human Resources
<PAGE>
MEDTRONIC, INC. AND PARTICIPATING EMPLOYERS
SUPPLEMENTAL RETIREMENT PLAN
FINANCIAL STATEMENTS
AND ADDITIONAL INFORMATION
APRIL 30, 1998 AND 1997
<PAGE>
MEDTRONIC, INC. AND PARTICIPATING EMPLOYERS
SUPPLEMENTAL RETIREMENT PLAN
FINANCIAL STATEMENTS
AND ADDITIONAL INFORMATION
APRIL 30, 1998 AND 1997
TABLE OF CONTENTS TO FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION
- --------------------------------------------------------------------
PAGE
----
Financial Statements:
Report of Independent Accountants 1
Statement of Net Assets Available for Benefits 2
Statement of Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4-8
Additional Information:*
Schedule I - Item 27a Form 5500 - Schedule of Assets Held for Investment
Purposes 9
Schedule II - Item 27d Form 5500 - Schedule of Reportable Transactions 10
* Other schedules required by Section 2520.103-10 of the Department of Labor
Rules and Regulations for Reporting and Disclosure under ERISA have been
omitted because they are not applicable.
<PAGE>
Report of Independent Accountants
October 9, 1998
To the Participants and Administrator
of the Medtronic, Inc. and Participating
Employers Supplemental Retirement Plan
In our opinion, the accompanying statements of net assets available for benefits
and the related statements of changes in net assets available for benefits
present fairly, in all material respects, the net assets of the Medtronic, Inc.
and Participating Employers Supplemental Retirement Plan at April 30, 1998 and
1997, and the changes in net assets for the years then ended, in conformity with
generally accepted accounting principles. These financial statements are the
responsibility of the plan's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with generally accepted auditing
standards which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for the opinion expressed above.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The additional information included in schedules I
and II is presented for purposes of additional analysis and is not a required
part of the basic financial statements but is additional information required by
ERISA. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Minneapolis, Minnesota
1
<PAGE>
MEDTRONIC, INC. AND PARTICIPATING EMPLOYERS
SUPPLEMENTAL RETIREMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
----------------------------------------------
($ IN 000'S)
------------
<TABLE>
<CAPTION>
April 30,
------------------------
1998 1997
---------- ----------
<S> <C> <C>
Assets:
- -------
Investments at Fair Value:
Medtronic, Inc. Stock Fund $ 355,373 $ 232,225
Vanguard Wellington Fund 94,442 64,539
Vanguard Explorer Fund 16,570 11,460
Vanguard Wellesley Income Fund 67 7,700
VMMR Prime Portfolio 412 10,393
Vanguard 500 Portfolio Index Trust 87,693 55,000
Vanguard Prime Cap Fund 57,264 29,842
Vanguard Windsor II Fund 55,687 32,620
Vanguard U.S. Growth Portfolio 2,699 --
Vanguard International Growth Fund 16,254 11,754
Vanguard Total Bond Market Fund 4,047 2,439
Vanguard Index Trust - Extended Market Portfolio 1,156 --
Participant Loans 11,695 10,583
---------- ----------
703,359 468,555
Deposits with Insurance Companies, at Contract Value 109,847 114,155
---------- ----------
Total Investments 813,206 582,710
Contributions Receivable:
Employer, net of forfeitures 7,668 8,601
Employee 2,247 1,970
---------- ----------
Net Assets Available for Benefits $ 823,121 $ 593,281
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
MEDTRONIC, INC. AND PARTICIPATING EMPLOYERS
SUPPLEMENTAL RETIREMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
---------------------------------------------------------
($ IN 000'S)
------------
<TABLE>
<CAPTION>
Years ended April 30,
---------------------------
1998 1997
----------- -----------
<S> <C> <C>
Additions:
- ----------
Contributions:
Employer $ 12,683 $ 13,043
Employee 38,925 34,348
Investment Activity:
Interest and Dividend Income 27,981 18,355
Net Appreciation in Fair Value of Investments 181,924 78,763
----------- -----------
Total Investment Income 209,905 97,118
Net Assets Transferred from Other Plans 743 423
----------- -----------
Total Additions 262,256 144,932
Deductions:
- -----------
Benefit Payments (32,416) (13,864)
----------- -----------
Increase in Net Assets 229,840 131,068
Net Assets Available for Benefits:
- ----------------------------------
Beginning of Year 593,281 462,213
----------- -----------
End of Year $ 823,121 $ 593,281
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
MEDTRONIC, INC. AND PARTICIPATING EMPLOYERS
SUPPLEMENTAL RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTE 1--DESCRIPTION OF THE PLAN
- -------------------------------
The Medtronic, Inc. and Participating Employers Supplemental Retirement Plan
(the Plan) is a defined contribution plan created by Medtronic, Inc. (the
company). It is subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA). The Plan provides for a regular savings program
whereby participants may deposit between 2% and 12% of their monthly salary. The
trustee of the Plan is Vanguard Fiduciary Trust Company (Vanguard Trust),
hereinafter referred to as the "Trustee". In fiscal 1998 and 1997, the company
paid certain administrative expenses of the Plan.
The company matches at least 25% of the employee contribution, up to 6% of
compensation. The company may contribute additional amounts, up to an additional
75% of the amount contributed by the employee (up to 6% of compensation), if
certain performance goals are achieved. Effective May 1, 1998 the company
increased the company minimum match from 25% to 50% of the employee
contribution, up to 6% of compensation. The match will be received by
participants in the form of an annual allocation of Medtronic stock to the
participants' Employee Stock Ownership Plan account.
Participants are 20% vested in the company contributions upon completing one
year of service. Additional vesting accrues at the rate of 20% per year
thereafter. Participants are 100% vested in their own contributions at all
times. Participant forfeiture of nonvested amounts reduce the company
contribution. Employer matching contributions of $400,000 and $177,244 during
fiscal years 1998 and 1997, respectively, were forfeited by terminating
employees before those amounts became vested.
Participants direct investment of funds allocated to their account among
thirteen investments. The Vanguard Wellington Fund, a balanced fund, consists of
common stocks and fixed income securities. The Interest Income Fund consists of
deposits with insurance companies at fixed rates of return. The Medtronic, Inc.
Stock Fund consists of holdings in Medtronic, Inc. common stock. The Vanguard
500 Portfolio Index Trust consists of stocks comprising the Standard and Poor's
500 Index. The Vanguard Explorer Fund is an aggressive growth fund consisting of
common stocks of small companies. The VMMR Prime Portfolio consists of
high-quality money market instruments. The Vanguard Windsor II Fund, a growth
and income fund, consists of common stocks that, in the opinion of the
investment advisor, are undervalued in the marketplace. The Vanguard Total Bond
Market Fund is a bond fund that seeks to parallel the performance of an
established Bond Index. The Vanguard Wellesley Income Fund, a balanced fund,
invests in corporate bonds and stocks with above average dividend yields. The
Vanguard Prime Cap Fund consists of stock, that in the opinion of the investment
advisor, have strong earnings growth potential. The Vanguard International
Growth Fund, an international stock fund, consists of non-U.S. stocks selected
for their appreciation potential. The Vanguard U.S. Growth Portfolio consists of
investments in large U.S. companies that, in the opinion of the investment
advisor, have records of exceptional growth and above average prospects for
future growth. The Vanguard Index Trust - Extended Market Portfolio attempts to
match the performance of the Wilshire 4500 Equity Index, an unmanaged index made
up mostly of mid- and small capitalization companies. Effective April 1,1998,
the VMMR Prime Portfolio and the Vanguard Wellesley Income Fund are no longer
available to participants in the plan.
4
<PAGE>
NOTE 1--DESCRIPTION OF THE PLAN (CONTINUED)
- -------------------------------------------
Termination or retirement benefits are paid by the Trustees in accordance with
the provisions of the Plan and the instructions of Medtronic, Inc., acting as
plan administrator. In the event the Plan were terminated, participants become
fully vested and the company would cause all amounts in the hands of the
Trustees to be allocated and distributed to the participants based upon their
investment balance.
NOTE 2--SUMMARY OF ACCOUNTING PRINCIPLES
- ----------------------------------------
Basis of Presentation
- ---------------------
The financial statements of the Plan are prepared on the accrual basis of
accounting.
Valuation of Investments
- ------------------------
As determined by the Trustee, investments are stated at fair value based upon
quoted market prices, except deposits with insurance companies guaranteed
investment contracts which are valued at contract value, which approximates fair
market value. Contract value represents contributions made under the contract,
plus earnings, less plan withdrawals, and administrative expenses.
Valuation of Participant Loans
- ------------------------------
Participant loans are valued at cost which approximates fair value. Participants
can have only one loan outstanding at a time and can borrow up to 50% of their
vested balance not to exceed the maximum loan amount of $50,000. The minimum
loan amount is $1,000. Loans are repaid through payroll deduction in equal
amounts over a 1 to 5 year period. The interest rate is calculated as one
percentage point over the prime rate in effect at US Bank, St. Paul, N.A., on
the first work day of the month in which the loan is made and remains fixed for
the duration for the loan.
Investment Activity
- -------------------
Interest and dividend income consists of amounts earned on investments in the
Plan's separate trust held by Vanguard Trust.
Use of Estimates
- ----------------
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
NOTE 3--TRUSTEE
- ---------------
Vanguard Trust maintains all assets and is the recordkeeper of the Plan.
Vanguard Trust maintains a separate account in the name of each participant in
the Plan to record the assets allocated to the participant and the earnings,
losses, disbursements and expenses credited thereto.
5
<PAGE>
NOTE 4--BENEFIT OBLIGATIONS
- ---------------------------
Differences in the amounts reported in the financial statements and the Form
5500 relate to benefit obligations at April 30, 1998 and 1997, for persons who
have withdrawn from participation in the Plan are as follows: ($ in 000's)
<TABLE>
<CAPTION>
April 30,
------------------------
1998 1997
---------- ----------
<S> <C> <C>
Medtronic, Inc. Stock Fund $ 673 $ 251
Interest Income Fund 312 606
Vanguard Wellington Fund 364 44
Vanguard Explorer Fund 112 20
Vanguard Wellesley Income Fund -- 9
VMMR Prime Portfolio -- 379
Vanguard 500 Portfolio Index Trust 281 46
Vanguard Prime Cap Fund 389 35
Vanguard Windsor II Fund 391 30
Vanguard International Growth Fund 205 6
Vanguard Total Bond Market Fund -- 3
Participant Loans 21 36
---------- ----------
$ 2,748 $ 1,465
========== ==========
</TABLE>
NOTE 5--RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
- -----------------------------------------------------------
The following is a reconciliation of net assets available for benefits per the
financial statements to the Form 5500: ($ in 000's)
<TABLE>
<CAPTION>
April 30,
-------------------------
1998 1997
---------- ----------
<S> <C> <C>
Net assets available for benefits per the financial statements $ 823,121 $ 593,281
Amounts allocated to withdrawing participants (2,748) (1,465)
---------- ----------
Net assets available for benefits per the Form 5500 $ 820,373 $ 591,816
========== ==========
</TABLE>
6
<PAGE>
NOTE 5--RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 (CONTINUED)
- -----------------------------------------------------------------------
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500: ($ in 000's)
Year Ended April 30, 1998
-------------------------
Benefits paid to participants per the financial statements $ 32,416
Add: Amounts allocated to withdrawing
participants at April 30, 1998 2,748
Less: Amounts allocated to withdrawing
participants at April 30, 1997 (1,465)
----------
Benefits paid to participants per the Form 5500 $ 33,699
==========
Amounts allocated to withdrawing participants are recorded on the Form 5500 for
benefit claims that have been processed and approved for payment prior to April
30 but not yet paid as of that date.
NOTE 6--TAX STATUS
- ------------------
The Plan has received a favorable determination letter of tax qualification from
the Internal Revenue Service. The Plan administrator believes the Plan continues
to qualify under the provision of Section 401(a) of the Internal Revenue Code,
and that the related trust is exempt from federal income tax.
NOTE 7--INVESTMENTS
- -------------------
During the years ended April 30, 1998 and 1997 the Plan had transactions with
Vanguard Trust, the Plan's trustee, which are allowed by the Plan and are
acceptable under the Internal Revenue Code. These transactions are classified as
party-in-interest transactions. The investments held by Vanguard Trust as of
April 30, 1998 and 1997 and the statement of changes for the periods then ended
are presented in the following table:
7
<PAGE>
NOTE 7--INVESTMENTS (CONTINUED)
- -------------------------------
<TABLE>
<CAPTION>
Vanguard
Interest Vanguard Vanguard Wellesley VMMR Vanguard Vanguard
Medtronic, Inc. Income Wellington Explorer Income Prime 500 Portfolio Prime Cap
1998 Stock Fund Fund Fund Fund Fund Portfolio Index Trust Fund
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance, April 30, 1997 $ 232,225 $ 114,155 $ 64,539 $ 11,460 $ 7,700 $ 10,393 $ 55,000 $ 29,842
Net Assets Transferred
from Other Plans 257 24 29 19 28 79 102 85
Contributions 20,269 5,939 4,330 2,227 877 1,073 5,996 5,180
Inter-Fund Transfers (11,757) (6,364) 10,291 (836) (10,147) (10,208) 5,869 10,236
Interest and Dividend Income 1,478 7,571 6,647 1,536 1,110 466 1,585 1,894
Realized/Unrealized Gain/(Loss) 119,960 -- 12,144 2,840 800 -- 22,133 11,641
Distributions (7,059) (11,478) (3,538) (676) (301) (1,391) (2,992) (1,614)
- ------------------------------------------------------------------------------------------------------------------------------------
Balance, April 30, 1998 $ 355,373 $ 109,847 $ 94,442 $ 16,570 $ 67 $ 412 $ 87,693 $ 57,264
====================================================================================================================================
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
Vanguard
Vanguard Vanguard Vanguard Index Trust- Vanguard
Windsor II International Bond Extended U.S. Growth Participant
1998 Fund Growth Fund Market Fund Market Portfolio Loans Fund Total
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance, April 30, 1997 $ 32,620 $ 11,754 $ 2,439 $ -- $ -- $ 10,583 $ 582,710
Net Assets Transferred
from Other Plans 46 71 3 -- -- -- 743
Contributions 4,077 1,796 493 1 6 -- 52,264
Inter-Fund Transfers 5,775 1,535 935 1,154 2,675 842 --
Interest and Dividend Income 4,006 575 180 (3) -- 936 27,981
Realized/Unrealized Gain/(Loss) 11,001 1,292 91 4 18 -- 181,924
Distributions (1,838) (769) (94) -- -- (666) (32,416)
- ------------------------------------------------------------------------------------------------------------------------
Balance, April 30, 1998 $ 55,687 $ 16,254 $ 4,047 $ 1,156 $ 2,699 $ 11,695 $ 813,206
========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Vanguard
Interest Vanguard Vanguard Wellesley VMMR Vanguard Vanguard
Medtronic, Inc. Income Wellington Explorer Income Prime 500 Portfolio Prime Cap
1997 Stock Fund Fund Fund Fund Fund Portfolio Index Trust Fund
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance, April 30, 1996 $ 203,833 $ 86,765 $ 51,231 $ 9,959 $ 5,100 $ 4,612 $ 33,606 $ 17,551
Net Assets Transferred
from Other Plans 59 12 15 53 8 70 29 88
Contributions 18,469 7,098 4,858 2,511 841 942 5,195 4,152
Inter-Fund Transfers (47,043) 19,313 751 104 1,216 4,645 7,199 3,999
Interest and Dividend Income 1,290 5,652 4,674 725 590 437 1,024 739
Realized/Unrealized Gain/(Loss) 59,752 -- 4,630 (1,633) 101 -- 8,612 3,702
Distributions (4,135) (4,685) (1,620) (259) (156) (313) (665) (389)
- ------------------------------------------------------------------------------------------------------------------------------------
Balance, April 30, 1997 $ 232,225 $ 114,155 $ 64,539 $ 11,460 $ 7,700 $ 10,393 $ 55,000 $ 29,842
====================================================================================================================================
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
Vanguard
Vanguard Vanguard Vanguard Index Trust- Vanguard
Windsor II International Bond Extended U.S. Growth Participant
1997 Fund Growth Fund Market Fund Market Portfolio Loans Fund Total
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance, April 30, 1996 $ 17,665 $ 8,523 $ 1,682 $ -- $ -- $ 8,702 $ 449,229
Net Assets Transferred
from Other Plans 56 27 10 -- -- 3 430
Contributions 3,547 1,725 459 -- -- -- 49,797
Inter-Fund Transfers 7,379 808 174 -- -- 1,455 --
Interest and Dividend Income 1,797 477 140 -- -- 810 18,355
Realized/Unrealized Gain/(Loss) 3,092 511 (4) -- -- -- 78,763
Distributions (916) (317) (22) -- -- (387) (13,864)
- -------------------------------------------------------------------------------------------------------------------------
Balance, April 30, 1997 $ 32,620 $ 11,754 $ 2,439 $ -- $ -- $ 10,583 $ 582,710
=========================================================================================================================
</TABLE>
8
<PAGE>
MEDTRONIC, INC. AND PARTICIPATING EMPLOYERS
SUPPLEMENTAL RETIREMENT PLAN
SCHEDULE I-ITEM 27A FORM 5500
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
-----------------------------------------------
(IN 000'S EXCEPT FOR NUMBER OF PARTICIPANTS/SHARES)
---------------------------------------------------
APRIL 30, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Investment Type Participants Shares Cost Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Medtronic, Inc. Stock Fund Company Stock Fund 6,751 8,220,563 $ 153,023 $ 355,373
Interest Income Fund Unallocated Insurance Contracts 4,169 109,793,057 109,847 109,847
Vanguard Wellington Fund Registered Investment Company 3,489 2,962,308 72,847 94,442
Vanguard Explorer Fund Registered Investment Company 1,712 273,286 14,533 16,570
Vanguard Wellesley Income Fund Registered Investment Company 1 3,031 60 67
VMMR Prime Portfolio Registered Investment Company 3 410,261 410 412
Vanguard 500 Portfolio Index Trust Registered Investment Company 3,671 849,134 53,944 87,693
Vanguard Prime Cap Fund Registered Investment Company 3,152 1,291,491 41,632 57,264
Vanguard Windsor II Fund Registered Investment Company 2,785 1,702,952 41,355 55,687
Vanguard U.S. Growth Portfolio Registered Investment Company 94 79,476 2,680 2,699
Vanguard International Registered Investment Company 1,496 864,262 14,202 16,254
Vanguard Bond Market Fund Registered Investment Company 604 400,770 3,984 4,047
Vanguard Index Trust-Ext. Mkt. Registered Investment Company 34 33,627 1,152 1,156
Participant Loans Fund Loans Other Than Mortgages 1,652 -- 11,695 11,695
(interest rates: 7.25% to 10.0%)
- ------------------------------------------------------------------------------------------------------------------------------------
Totals $ 521,364 $ 813,206
====================================================================================================================================
</TABLE>
The above data was prepared from information certified as complete and accurate
by Vanguard Fiduciary Trust Company, the Plan's Trustee .
9
<PAGE>
ADDITIONAL INFORMATION
----------------------
MEDTRONIC, INC. AND PARTICIPATING EMPLOYERS
SUPPLEMENTAL RETIREMENT PLAN
SCHEDULE II-ITEM 27D FORM 5500
SCHEDULE OF REPORTABLE TRANSACTIONS
-----------------------------------
(IN 000'S EXCEPT FOR NUMBER OF PURCHASES/SALES)
-----------------------------------------------
YEAR ENDED APRIL 30, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
No. of Proceeds No. of Historical
Fund Cost of Purchase Purchases from Sale Sales Cost of Sales Gain or (Loss)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Medtronic, Inc. Stock Fund $ 97,569 222 $ 94,423 250 $ 61,235 $ 33,188
Interest Income Fund 73,743 256 78,043 252 78,043 --
Vanguard Wellington Fund 31,141 212 13,379 230 10,944 2,435
Vanguard Explorer Fund 11,103 189 8,825 229 8,315 510
Vanguard Wellesley Income Fund 6,128 130 14,560 152 13,643 917
VMMR Prime Portfolio 22,917 210 32,862 193 32,862 --
Vanguard 500 Portfolio Index Trust 32,432 233 21,891 239 18,033 3,858
Vanguard Prime Cap Fund 29,097 240 13,326 234 11,462 1,864
Vanguard Windsor II Fund 21,417 221 9,363 228 7,931 1,432
Vanguard International 8,314 189 5,110 214 4,748 362
Vanguard Bond Market Fund 3,505 182 1,991 135 1,974 17
Vanguard Index Trust-Extended Mk 1,154 14 3 14 3 --
Vanguard U.S. Growth Portfolio 2,679 21 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Totals $ 341,199 $ 293,776 $ 249,193 $ 44,583
====================================================================================================================================
</TABLE>
The above data represents information relating to the Plan's individual trust
only. It was prepared from information certified as complete and accurate by
Vanguard Fiduciary Trust Company, the Plan's Trustee.
10
<PAGE>
Consent of Independent Accountants
----------------------------------
We hereby consent to the incorporation by reference in the Registration
Statements on Form S-8 (Nos. 33-37529 and 33-44230) of the Medtronic, Inc. and
Participating Employers Supplemental Retirement Plan of our report dated October
9, 1998 appearing in this Annual Report of the Medtronic, Inc. and Participating
Employers Supplemental Retirement Plan on Form 11-K for the year ended April 30,
1998.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Minneapolis, Minnesota
October 23, 1998
