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Table of Contents
Medtronic plc
Notes to Consolidated Financial Statements (Continued)
91
6. Goodwill and Other Intangible Assets, Net
Goodwill
The changes in the carrying amount of goodwill for fiscal years 2016 and 2015 are as follows:
(in millions)
Cardiac and
Vascular
Group
Minimally
Invasive
Therapies
Group
Restorative
Therapies
Group Diabetes
Group Total
Balance as of April 25, 2014 $ 2,881 $ — $ 6,368 $ 1,344 $ 10,593
Goodwill as a result of Covidien acquisition 2,795 23,399 2,892 500 29,586
Goodwill as a result of other acquisitions 245 — 218 9 472
Other adjustments, net — — (9) — (9)
Currency adjustment, net (66) — (45)(1)(112)
Balance as of April 24, 2015 $ 5,855 $ 23,399 $ 9,424 $ 1,852 $ 40,530
Goodwill as a result of acquisitions 393 264 199 — 856
Measurement period adjustments related to Covidien 21 346 26 — 393
Other adjustments, net — (34) 3 — (31)
Currency adjustment, net (26)(191)(32) 1 (248)
Balance as of April 29, 2016 $ 6,243 $ 23,784 $ 9,620 $ 1,853 $ 41,500
The Company assesses goodwill for impairment annually in the third quarter and whenever an event occurs or circumstances
change that would indicate that the carrying amount may be impaired. Impairment testing for goodwill is performed at the reporting
unit level. The Company included the Minimally Invasive Therapies Group as an additional reporting unit in its annual impairment
testing performed in the third quarter of fiscal year 2016. No other changes were made to reporting units during fiscal year 2016.
The test for impairment of goodwill requires the Company to make several estimates about fair value, most of which are based on
projected future cash flows. The Company calculated the excess of each reporting unit's fair value over its carrying amount,
including goodwill, utilizing a discounted cash flow analysis. As a result of the analysis performed, the fair value of each reporting
unit's goodwill was deemed to be greater than the carrying value. The Company did not record any goodwill impairments during
fiscal years 2016, 2015, or 2014.
Intangible Assets Carrying Value
The gross carrying amount and accumulated amortization of intangible assets at the end of fiscal years 2016 and 2015 are as
follows:
Fiscal Year 2016 Fiscal Year 2015
(in millions) Gross Carrying
Amount Accumulated
Amortization Gross Carrying
Amount Accumulated
Amortization
Definite-lived
Customer-related $ 18,596 $ (1,331) $ 18,492 $ (273)
Purchased technology and patents 11,397 (2,976) 11,118 (2,268)
Trademarks and tradenames 854 (403) 640 (363)
Other 72 (31) 79 (44)
Total $ 30,919 $ (4,741) $ 30,329 $ (2,948)
Indefinite-lived
IPR&D $ 721 $ 470
Tradenames — 250
Total $ 721 $ 720
The Company assesses indefinite-lived assets for impairment annually in the third quarter and whenever an event occurs or
circumstances change that would indicate that the carrying amount may be impaired. Similar to the goodwill impairment test, the