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Goodwill and Other Intangible Assets

9 Months Ended

Jan. 27, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Note 12 – Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the nine months ended January 27, 2012 are as follows:

	Cardiac and		Restorative
(in millions)	Vascular Group		Therapies Group		Total
Balance as of April 29, 2011	$	2,662	$	6,858	$	9,520
Goodwill as a result of acquisitions		-		399		399
Purchase accounting adjustments, net		6		32		38
Currency adjustment, net		(40)		(2)		(42)
Balance as of January 27, 2012	$	2,628	$	7,287	$	9,915

During the three months ended January 27, 2012, the Company recorded $9 million in purchase accounting adjustments, net related to the finalization of the valuation of technology-based intangible assets acquired in the Salient acquisition. During the nine months ended January 27, 2012 the Company recorded $38 million in purchase accounting adjustments, net including $29 million in adjustments recorded in the second quarter of fiscal year 2012 primarily related to a valuation correction for the calculation of deferred tax assets associated with net operating losses available to the Company for the fiscal year 2008 acquisition of Kyphon, Inc. (Kyphon).

Balances of intangible assets, excluding goodwill, as of January 27, 2012 and April 29, 2011 are as follows:

	Purchased		Trademarks
	Technology and		and		Acquired
(in millions)	Patents		Tradenames		IPR&D		Other		Total
Amortizable intangible assets as of January 27, 2012:
Original cost	$	3,609	$	373	$	369	$	147	$	4,498
Accumulated amortization		(1,378)		(306)		-		(101)		(1,785)
Carrying value	$	2,231	$	67	$	369	$	46	$	2,713

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

Amortization expense for the three and nine months ended January 27, 2012 was $84 million and $255 million, respectively, and for the three and nine months ended January 28, 2011 was $86 million and $252 million, respectively.

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)	Estimated
Fiscal Year	Amortization Expense
Remaining 2012	$	83
2013		319
2014		310
2015		293
2016		281
Thereafter		1,058
Total estimated amortization expense	$	2,344

- 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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