Acquisitions and Assets and Liabilities Held for Sale (Tables)

3 Months Ended

Jul. 29, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Fair Value of the Assets Acquired and Liabilities Assumed

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

(in millions)	Intersect ENT
Cash and cash equivalents	$	39
Inventory	32
Goodwill	615
Other intangible assets	683
Other assets	40
Total assets acquired	1,408
Current liabilities	63
Deferred tax liabilities	51
Other liabilities	18
Total liabilities assumed	131
Net assets acquired	$	1,277

Reconciliation of Beginning and Ending Balances of Contingent Consideration

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

	Three months ended
(in millions)	July 29, 2022		July 30, 2021
Beginning balance	$	119	$	270
Purchase price contingent consideration	73		—
Purchase price allocation adjustments	—		25
Payments	—		(11)
Change in fair value	2		10
Ending balance	$	193	$	294

Fair Value Measurements, Contingent Consideration, Significant Unobservable Inputs

The recurring Level 3 fair value measurements of contingent consideration for which a liability is recorded include the following significant unobservable inputs:

	Fair Value at
(in millions)	July 29, 2022	Unobservable Input	Range	Weighted Average (1)
Revenue and other performance-based payments	$143	Discount rate	11.2% - 27.2%	15.0%
		Projected fiscal year of payment	2023 - 2027	2025
Product development and other milestone-based payments	$50	Discount rate	5.5%	5.5%
		Projected fiscal year of payment	2023 - 2024	2023

(1) Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. For projected fiscal year of payment, the amount represents the median of the inputs and is not a weighted average.

Assets and Liabilities Classified as Held for Sale

The following table presents information related to the assets and liabilities that were classified as held for sale in our consolidated balance sheet:

(in millions)	July 29, 2022
Inventories, net	$	119
Property, plant, and equipment, net	141
Goodwill	147
Other intangible assets, net	114
Other	48
Total assets held for sale (1)	$	568
Total liabilities held for sale (1)(2)	$	38

(1) Total assets held for sale and total liabilities held for sale are reported in other current assets and other accrued expenses, respectively in the consolidated balance sheets.

(2) No separate class of liability classified as held for sale was individually significant enough for separate disclosure.