Acquisitions (Tables)

12 Months Ended

Apr. 26, 2019

Schedule of Fair Value of the Assets Acquired and Liabilities Assumed

The acquisition date fair values of the assets acquired and liabilities assumed in fiscal year 2019 were as follows:



(in millions)	Mazor Robotics		EPiX Therapeutics, Inc.		All Other		Total
Cash and cash equivalents	$	109	$	3	$	3	$	115
Investments	52		—		—		52
Accounts receivable	10		—		2		12
Inventory	7		—		27		34
Other current assets	2		1		3		6
Property, plant, and equipment	3		1		29		33
Goodwill	1,197		165		148		1,510
Other intangible assets	399		162		210		771
Tax assets	6		—		7		13
Other assets	1		2		—		3
Total assets acquired	1,786		334		429		2,549

Current liabilities	54		4		45		103
Accrued income taxes	—		—		5		5
Deferred tax liabilities	58		11		—		69
Total liabilities assumed	112		15		50		177
Net assets acquired	$	1,674	$	319	$	379	$	2,372

Reconciliation of Beginning and Ending Balances of Contingent Consideration Associated with Acquisitions

The following table provides a reconciliation of the beginning and ending balances of contingent consideration:



	Fiscal Year
(in millions)	2019			2018
Beginning Balance	$	173		$	246
Purchase price contingent consideration	151			28
Contingent consideration payments	(36		)	(72		)
Change in fair value of contingent consideration	(66		)	(29		)
Ending Balance	$	222		$	173

Schedule of Significant Unobservable Inputs

The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs:



(in millions)	Fair Value at April 26, 2019		Valuation Technique	Unobservable Input	Range
				Discount rate	11.5% - 32.5%
Revenue-based payments	$	90	Discounted cash flow	Probability of payment	65% - 100%
				Projected fiscal year of payment	2020 - 2025
				Discount rate	5.5%
Product development-based payments	$	132	Discounted cash flow	Probability of payment	75% - 100%
				Projected fiscal year of payment	2020 - 2027

The following table presents the unobservable inputs utilized in the fair value measurement of the auction rate securities classified as Level 3 at April 26, 2019:



	Valuation Technique	Unobservable Input	Range (Weighted Average)
Auction rate securities	Discounted cash flow	Years to principal recovery	2 yrs. - 12 yrs. (3 yrs.)
Auction rate securities	Discounted cash flow	Illiquidity premium	6%