Medtronic 2014 Annual Report Download - page 100

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Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
of intangible assets, may not be fully recoverable. During fiscal year 2014, the carrying amount of Ardian intangible assets was
less than the undiscounted future cash flows, therefore, the Company assessed the fair value of the assets and recorded an
impairment of $41 million that was included in acquisition-related items in the consolidated statements of earnings. During
fiscal year 2013, the carrying amount of one intangible asset was less than the undiscounted future cash flows, therefore, the
Company assessed the asset’s fair value and there were no material impairments recorded. The Company did not record any
intangible asset impairments during fiscal year 2012.
The Company assesses the impairment of property, plant, and equipment whenever events or changes in circumstances indicate that
the carrying amount of property, plant, and equipment assets may not be recoverable. During fiscal year 2014, the Company
determined that a change in events and circumstances indicated that the carrying amount of Ardian property, plant, and equipment may
not be fully recoverable and recorded an impairment of $3 million that was recorded in acquisition-related items in the consolidated
statements of earnings. As part of the Company’s restructuring initiatives, the Company recorded property, plant, and equipment
impairments of $16 million, $6 million, and $9 million during fiscal years 2014, 2013, and 2012, respectively, in restructuring
charges, net in the consolidated statements of earnings. For further discussion of the restructuring initiatives refer to Note 3.
Financial Instruments Not Measured at Fair Value
The estimated fair value of the Company’s long-term debt, including the short-term portion, as of April 25, 2014 was $11.856
billion compared to a principal value of $11.375 billion, and as of April 26, 2013 was $10.820 billion compared to a principal
value of $9.928 billion. Fair value was estimated using quoted market prices for the publicly registered senior notes, classified
as Level 1 within the fair value hierarchy. The fair values and principal values consider the terms of the related debt and exclude
the impacts of debt discounts and derivative/hedging activity.
7. Goodwill and Other Intangible Assets, Net
The changes in the carrying amount of goodwill for fiscal years 2014 and 2013 are as follows:
(in millions)
Cardiac and
Vascular Group
Restorative
Therapies Group Diabetes Group Total
Balance as of April 27, 2012 $ 2,636 $ 5,954 $ 1,344 $ 9,934
Goodwill as a result of acquisitions — 414 — 414
Other adjustments, net — 3 — 3
Currency adjustment, net (12) (10) — (22)
Balance as of April 26, 2013 $ 2,624 $ 6,361 $ 1,344 $ 10,329
Goodwill as a result of acquisitions 279 — — 279
Other adjustments, net (8) 7 — (1)
Currency adjustment, net (14) — — (14)
Balance as of April 25, 2014 $ 2,881 $ 6,368 $ 1,344 $ 10,593
92