Business Combinations and Divestitures

3 Months Ended

Mar. 30, 2014

Business Combinations [Abstract]

BUSINESS COMBINATIONS AND DIVESTITURES

BUSINESS COMBINATIONS AND DIVESTITURES

On March 31, 2014, the Company announced that it has accepted the binding offer from The Carlyle Group, which was received and announced on January 16, 2014, to acquire its Ortho-Clinical Diagnostics business for approximately $4.0 billion, subject to customary adjustments. This acceptance was made after consultation with the relevant works councils and trade unions. The transaction is expected to close toward the middle of the year, upon satisfaction of customary closing conditions. Ortho-Clinical Diagnostics' results are included in the Company's Medical Devices and Diagnostics segment pre-tax profit.

As of March 30, 2014, the total assets classified as held for sale related to Ortho-Clinical Diagnostics were:

(Dollars in Millions)
Accounts Receivable, trade	$	102
Inventory	363
Prepaid expenses and other current assets	67
Current assets held for sale(1)	532
Property, plant and equipment, net	636
Goodwill	604
Other non-current assets	72
Non-Current assets held for sale(2)	$	1,312

(1) Component of prepaid expenses and other on the Consolidated Balance Sheet

(2) Component of other assets on the Consolidated Balance Sheet

The Consolidated Balance Sheet also includes $99 million of current liabilities classified as held for sale as a component of accounts payable and accrued liabilities, and $40 million of non-current liabilities classified as held for sale as a component of other liabilities.

During the fiscal first quarter of 2014, a definitive agreement was signed by McNEIL-PPC, Inc, a subsidiary of Johnson & Johnson to sell the global rights to the K-Y^® brand to Reckitt Benckiser Group PLC. The transaction is expected to close toward the middle of the year.

During the fiscal first quarter of 2013, the Company completed the acquisitions of Flexible Stenting Solutions, Inc., a leading developer of innovative flexible peripheral arterial, venous and biliary stents and Shanghai Elsker Mother & Baby Co., Ltd, a baby care company in China.