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Goodwill and Other Intangible Assets

12 Months Ended

Apr. 27, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

8. Goodwill and Other Intangible Assets, Net

The changes in the carrying amount of goodwill for fiscal years 2012 and 2011 are as follows:

	Cardiac and		Restorative
(in millions)	Vascular Group		Therapies Group		Total
Balance as of April 30, 2010	$	1,588	$	6,803	$	8,391
Goodwill as a result of acquisitions		1,028		33		1,061
Purchase accounting adjustments, net		25		4		29
Currency adjustment, net		21		18		39
Balance as of April 29, 2011	$	2,662	$	6,858	$	9,520
Goodwill as a result of acquisitions		-		404		404
Purchase accounting adjustments, net		6		38		44
Currency adjustment, net		(32)		(2)		(34)
Balance as of April 27, 2012	$	2,636	$	7,298	$	9,934

During fiscal year 2012, the Company recorded $44 million in purchase accounting adjustments, net, primarily including adjustments of $29 million and $11 million recorded in the second and fourth quarters, respectively. These adjustments primarily relate to a valuation correction for the calculation of deferred tax assets associated with the net operating losses available to the Company for the fiscal year 2008 acquisition of Kyphon Inc. (Kyphon).

The Company completed its annual goodwill impairment test during the third quarter of fiscal years ended April 27, 2012, April 29, 2011, and April 30, 2010 and concluded that there were no impairments or reporting units that were considered at risk of impairment. See Note 7 for further information.

Balances of intangible assets, net, excluding goodwill, for fiscal years 2012 and 2011 are as follows:

	Purchased		Trademarks
	Technology and		and		Acquired
(in millions)	Patents		Tradenames		IPR&D		Other		Total
Amortizable intangible assets as of April 27, 2012:
Original cost	$	3,604	$	373	$	370	$	148	$	4,495
Accumulated amortization		(1,440)		(307)		-		(101)		(1,848)
Carrying value	$	2,164	$	66	$	370	$	47	$	2,647

Weighted average original life (in years)		12.6		10.3		N/A		9.6

Amortizable intangible assets as of April 29, 2011:
Original cost	$	3,509	$	373	$	338	$	149	$	4,369
Accumulated amortization		(1,261)		(290)		-		(93)		(1,644)
Carrying value	$	2,248	$	83	$	338	$	56	$	2,725

Weighted average original life (in years)		12.5		10.3		N/A		8.5

Amortization expense for fiscal years 2012, 2011, and 2010 was $335 million, $339 million, and $317 million, respectively.

The Company completed its annual intangible assets impairment review during the third quarter of fiscal years ended April 27, 2012, April 29, 2011, and April 30, 2010. The Company did not record any intangible asset impairments during fiscal years 2012 and 2010. As a result of the analysis performed during fiscal year 2011, the fair values of the intangible assets were deemed to be less than the carrying values, resulting in pre-tax impairment losses of $28 million, of which $19 million was related to the fiscal year 2011 restructuring initiative. See Note 7 for further information.

Estimated aggregate amortization expense based on the current carrying value of amortizable intangible assets, excluding any possible future amortization associated with acquired IPR&D, which has not met technological feasibility, is as follows:

(in millions)
Fiscal Year	Amortization
Fiscal Year	Expense
2013	$	313
2014		303
2015		286
2016		275
2017		243
Thereafter		857
	$	2,277

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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