Medtronic 2013 Annual Report Download - page 92

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75732me_10K.indd 77 6/25/13 6:39 PM
Table of Contents
Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
The Company accounted for the acquisition of Osteotech as a business combination. The Company recorded the identifiable assets
acquired and liabilities assumed at fair value on the acquisition date as follows:
(in millions)
Current assets $ 34
Property, plant, and equipment 21
IPR&D 1
Other intangible assets 46
Goodwill 19
Inventory 41
Other long-term assets 3
Total assets acquired 165
Current liabilities 19
Other long-term liabilities 15
Long-term deferred tax liabilities, net 8
Total liabilities assumed 42
Net assets acquired $ 123
ATS Medical, Inc.
On August 12, 2010, the Company acquired ATS Medical. ATS Medical is a leading developer, manufacturer, and marketer of
products and services focused on cardiac surgery, including heart valves and surgical cryoablation technology. Under the terms
of the agreement, ATS Medical shareholders received $4.00 per share in cash for each share of ATS Medical common stock that
they owned. Total consideration for the transaction was $394 million which included $30 million of ATS Medical debt and acquired
contingent liabilities of $10 million. In connection with the acquisition, the Company acquired $101 million of technology-based
intangible assets that had an estimated useful life of 11 years at the time of acquisition, $6 million of IPR&D, $78 million of net
tangible assets, and $209 million of goodwill. The value attributable to IPR&D, which relates to the future launch of ATS Medical’s
next generation surgical ablation and 3f tissue valve products, has been capitalized as an indefinite-lived intangible asset. The
goodwill is not deductible for tax purposes.
The Company accounted for the acquisition of ATS Medical as a business combination. The Company recorded the identifiable
assets acquired and liabilities assumed at fair value on the acquisition date as follows:
(in millions)
Current assets $ 51
Property, plant, and equipment 7
IPR&D 6
Other intangible assets 101
Goodwill 209
Long-term deferred tax assets, net 34
Total assets acquired 408
Current liabilities 14
Total liabilities assumed 14
Net assets acquired $ 394
Axon Systems, Inc.
On June 2, 2010, the Company acquired substantially all of the assets of Axon Systems, Inc. (Axon), a privately-held company.
Prior to the acquisition, the Company distributed a large portion of Axon’s products. The acquisition has allowed the Company
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