Acquisitions

3 Months Ended

Mar. 31, 2017

Business Combinations [Abstract]

Acquisitions

ACQUISITIONS

In April 2016 we completed the acquisition of Sage Products, LLC (Sage) for total consideration of approximately $2,875. Sage develops, manufactures and distributes intensive care disposable products. This acquisition enhanced our product offerings within our MedSurg segment. The finalization of our purchase price allocation resulted in a $30 increase in goodwill from our preliminary allocation in 2016.

In April 2016 we completed the acquisition of Physio-Control International, Inc. (Physio) for total net consideration of approximately $1,299. Physio develops, manufactures and markets monitors/defibrillators, AEDs and CPR-assist devices along with data management and support services. This acquisition enhanced our product offerings within our MedSurg segment. The finalization of our purchase price allocation resulted in a $19 decrease in goodwill from our preliminary allocation in 2016.

The Other acquisitions in 2016 include the acquisition of Synergetics' neuro portfolio (Synergetics). The Synergetics acquisition enhanced our product offerings within our MedSurg segment. The finalization of our purchase price allocation resulted in an $11 increase in goodwill from our preliminary allocation in 2016.

Purchase price allocations for additional Other acquisitions in 2017 and 2016 were based on preliminary valuations. Our estimates and assumptions are subject to change within the measurement period.

Goodwill acquired with the Sage and Synergetics acquisitions is deductible for tax purposes.

Purchase Price Allocation of Acquired Net Assets
	2017		2016
	Other		Sage			Physio			Other
Purchase price paid	$	9	$	2,870		$	1,299		$	348
Contingent consideration	3		5			—			27
Loss on settlement of pre-existing contract	—		—			—			(19		)
Total consideration	$	12	$	2,875		$	1,299		$	356
Tangible assets:
Cash	$	—	$	91		$	32		$	1
Accounts receivable	—		29			107			17
Inventory	—		63			61			5
Other assets	—		80			103			21
Liabilities	—		(83		)	(364		)	(29		)
Intangible assets:
Customer relationship	—		930			344			12
Trade name	—		70			160			10
Developed technology and patents	12		173			226			119
Non-compete	—		—			—			2
IPR&D	—		—			7			7
Goodwill	—		1,522			623			191
	$	12	$	2,875		$	1,299		$	356
Weighted-average life of intangible assets	15		15			14			12

Estimated Amortization Expense
Remainder of 2017		2018		2019		2020		2021
$	258	$	340	$	330	$	312	$	299