XML 41 R31.htm IDEA: XBRL DOCUMENT v2.4.1.9
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill [Table Text Block]
 
 
As of December 31, 2014
 
As of December 31, 2013
 
 
Gross Carrying
 
Accumulated
Amortization/
 
Gross Carrying
 
Accumulated
Amortization/
(in millions)
 
Amount
 
Write-offs
 
Amount
 
Write-offs
Amortizable intangible assets
 
 
 
 
 
 
 
 
Technology-related
 
$
8,406

 
$
(3,697
)
 
$
8,272

 
$
(3,342
)
Patents
 
519

 
(342
)
 
513

 
(326
)
Other intangible assets
 
875

 
(533
)
 
845

 
(479
)
 
 
$
9,800

 
$
(4,572
)
 
$
9,630

 
$
(4,147
)
Unamortizable intangible assets
 
 
 
 
 
 
 
 
Goodwill
 
$
15,798

 
$
(9,900
)
 
$
15,593

 
$
(9,900
)
Technology-related
 
197

 

 
197

 

 
 
$
15,995

 
$
(9,900
)
 
$
15,790

 
$
(9,900
)
Schedule of Goodwill [Table Text Block]
The following represents our goodwill balance by new global reportable segment. We restated the prior period information to conform to the current presentation:
(in millions)
 
Cardiovascular
 
Rhythm Management
 
MedSurg
 
Total
Balance as of December 31, 2012
 
$
3,249

 
$
577

 
$
2,147

 
$
5,973

Purchase price adjustments
 
3

 

 

 
3

Goodwill acquired
 

 
140

 

 
140

Goodwill written off
 

 
(423
)
 

 
(423
)
Balance as of December 31, 2013
 
$
3,252

 
$
294

 
$
2,147

 
$
5,693

Purchase price adjustments
 
(2
)
 
(4
)
 
(2
)
 
(8
)
Goodwill acquired
 
169

 

 
44

 
213

Goodwill written off
 

 

 

 

Other changes in carrying amount*
 
7

 
$

 
(7
)
 

Balance as of December 31, 2014
 
$
3,426

 
$
290

 
$
2,182

 
$
5,898

Asset Impairment Charges [Text Block]
The following is a rollforward of accumulated goodwill write-offs by global reportable segment:
(in millions)
 
Cardiovascular
 
Rhythm Management
 
MedSurg
 
Total
Accumulated write-offs as of December 31, 2012
 
$
(1,479
)
 
$
(6,537
)
 
$
(1,461
)
 
$
(9,477
)
Goodwill written off
 

 
(423
)
 

 
(423
)
Accumulated write-offs as of December 31, 2013
 
$
(1,479
)
 
$
(6,960
)
 
(1,461
)
 
$
(9,900
)
Goodwill written off
 

 

 

 

Accumulated write-offs as of December 31, 2014
 
$
(1,479
)
 
$
(6,960
)
 
$
(1,461
)
 
$
(9,900
)
Description of unobservable inputs used in Level 3 fair value measurements [Table Text Block]
The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs:

Contingent Consideration Liability
Fair Value as of December 31, 2014
Valuation Technique
Unobservable Input
Range
R&D, Regulatory and Commercialization-based Milestones
$85 million
Probability Weighted Discounted Cash Flow
Discount Rate
1.1%
Probability of Payment
84% - 95%
Projected Year of Payment
2015
Revenue-based Payments
$55 million
Discounted Cash Flow
Discount Rate
11.5% - 15%
Probability of Payment
0% - 100%
Projected Year of Payment
2015 - 2018
$134 million
Monte Carlo
Revenue Volatility
11% - 13%
Risk Free Rate
LIBOR Term Structure
Projected Year of Payment
2015 - 2018
The nonrecurring Level 3 fair value measurements of our intangible asset impairment analysis included the following significant unobservable inputs:

Intangible Asset
Valuation Date
Fair Value
Valuation Technique
Unobservable Input
Rate
In-Process R&D
September 30, 2014
$16 million
Income Approach - Excess Earnings Method
Discount Rate
 16.5 - 20%
In-Process R&D
June 30, 2014
$83 million
Income Approach - Excess Earnings Method
Discount Rate
 16.5 - 20%
Core Technology
June 30, 2014
$8 million
Income Approach - Excess Earnings Method
Discount Rate
15%
In-Process R&D
March 31, 2014
$6 million
Income Approach - Excess Earnings Method
Discount Rate
20%
Core Technology
March 31, 2014
$64 million
Income Approach - Excess Earnings Method
Discount Rate
15%
In-Process R&D
June 30, 2013
$178 million
Income Approach - Excess Earnings Method
Discount Rate
16.5%
In-Process R&D
September 30, 2012
$26 million
Income Approach - Excess Earnings Method
Discount Rate
20 - 25%
In-Process R&D
June 30, 2012
$184 million
Income Approach - Excess Earnings Method
Discount Rate
20%
Schedule of Impaired Intangible Assets [Table Text Block]
 
 
Year Ended December 31,
(in millions)
 
2014
 
2013
 
2012
Technology-related
 
$
107

 
$

 
$

In-process research and development
 
88

 
53

 
142

 
 
$
195

 
53

 
$
142

Schedule of Expected Amortization Expense [Table Text Block]
 
 
 
 
 
Estimated Amortization Expense
Fiscal Year
 
(in millions)
 
2015
 
$
470

2016
 
469

2017
 
467

2018
 
464

2019
 
460