Goodwill and Other Intangible Assets

3 Months Ended

Jul. 29, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

The following table presents the changes in the carrying amount of goodwill by segment:

(in millions)	Cardiovascular		Medical Surgical		Neuroscience		Diabetes		Total
April 29, 2022	$	7,160	$	19,957	$	11,132	$	2,254	$	40,502
Goodwill as a result of acquisitions	66		—		615		—		680
Purchase accounting adjustments	(10)		—		—		—		(10)
Transfer to held for sale	—		(208)		—		—		(208)
Currency translation and other	(49)		(507)		(83)		(1)		(640)
July 29, 2022	$	7,166	$	19,242	$	11,664	$	2,253	$	40,324

As a result of the agreement with DaVita, as disclosed in Note 4 to the consolidated financial statements, the Company allocated $208 million of goodwill to the RCS business that met the criteria to be classified as held for sale. Upon allocation, a goodwill impairment test was performed for the RCS business, and the Company recognized $61 million of goodwill impairment during the three months ended July 29, 2022. The goodwill impairment charges are recognized in other operating expense, net in the consolidated statements of income. The Company did not recognize any goodwill impairments during the three months ended July 30, 2021.

Intangible Assets

The following table presents the gross carrying amount and accumulated amortization of intangible assets:

	July 29, 2022				April 29, 2022
(in millions)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Definite-lived:
Customer-related	$	16,927	$	(7,238)	$	16,953	$	(7,005)
Purchased technology and patents	11,311		(5,758)		10,802		(5,667)
Trademarks and tradenames	485		(268)		473		(266)
Other	97		(65)		80		(69)
Total	$	28,820	$	(13,328)	$	28,308	$	(13,006)
Indefinite-lived:
IPR&D	$	283	$	—	$	293	$	—

The Company did not recognize any definite-lived intangible asset charges during the three months ended July 29, 2022. During the three months ended July 30, 2021 the Company recognized $409 million of definite-lived intangible asset charges in connection with MCS within the Cardiovascular Portfolio. Refer to Note 5 to the consolidated financial statements for additional information on what led to the impairment. Intangible asset impairment charges are recognized in other operating expense, net in the consolidated statements of income.

The Company did not recognize any indefinite-lived intangible asset impairments during the three months ended July 29, 2022 and July 30, 2021. Due to the nature of IPR&D projects, the Company may experience future delays or failures to obtain regulatory approvals to conduct clinical trials, failures of clinical trials, delays or failures to obtain required market clearances, other failures to achieve a commercially viable product, or the discontinuation of certain projects, and as a result, may recognize impairment losses in the future.

Amortization Expense

Intangible asset amortization expense for the three months ended July 29, 2022 and July 30, 2021 was $423 million and $436 million, respectively. Estimated aggregate amortization expense by fiscal year based on the carrying value of definite-lived intangible assets at July 29, 2022, excluding any possible future amortization associated with acquired IPR&D which has not yet met technological feasibility, is as follows:

(in millions)	Amortization Expense
Remaining 2023	$	1,261
2024	1,649
2025	1,627
2026	1,613
2027	1,589
2028	1,539