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75732me_10K.indd 73 7/1/13 6:36 PM
Table of Contents
Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
A summary of the activity (including Physio-Control) related to the fiscal year 2011 initiative is presented below:
Fiscal Year 2011 Initiative
Employee
Termination Asset Other
(in millions) Costs Write-downs Costs Total
Balance as of April 30, 2010 $ — $ — $ — $ —
Restructuring charges 162 24 71 257
Payments/write-downs (5) (24) (24) (53)
Balance as of April 29, 2011 $ 157 $ — $ 47 $ 204
Payments (134) — (35) (169)
Reversal of excess accrual (23) — (8) (31)
Balance as of April 27, 2012 $ — $ — $ 4 $ 4
Payments — — (4) (4)
Balance as of April 26, 2013 $ — $ — $ — $ —
4. Acquisitions and Acquisition-Related Items
The Company had various acquisitions and other acquisition-related activity during fiscal years 2013, 2012, and 2011. Certain
acquisitions were accounted for as business combinations as noted below. In accordance with authoritative guidance on business
combination accounting, the assets and liabilities of the company acquired were recorded as of the acquisition date, at their
respective fair values, and consolidated. The pro forma impact of these acquisitions was not significant, individually or in the
aggregate, to the results of the Company for the fiscal years ended April 26, 2013, April 27, 2012, or April 29, 2011. The results
of operations related to each company acquired have been included in the Company’s consolidated statements of earnings since
the date each company was acquired.
Fiscal Year 2013
China Kanghui Holdings
On November 1, 2012, the Company acquired China Kanghui Holdings (Kanghui). Kanghui is a Chinese manufacturer and
distributor of orthopedic products in trauma, spine, and joint reconstruction. Total consideration for the transaction was
approximately $816 million. The total value of the transaction, net of Kanghui's cash, was approximately $797 million. Based on
the acquisition valuation, the Company acquired $288 million of technology-based assets and $53 million of tradenames and
customer-related intangible assets that each had a weighted average estimated useful life of 11 years at the time of acquisition and
$404 million of goodwill. Acquired goodwill is not deductible for tax purposes.
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