Medtronic 2015 Annual Report Download - page 106

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Medtronic plc
Notes to Consolidated Financial Statements (Continued)
The Company assesses property, plant, and equipment for impairment whenever events or changes in circumstances indicate
that the carrying amount of property, plant, and equipment assets may not be recoverable. As part of the Company’s
restructuring initiatives, the Company recorded property, plant, and equipment impairments of $8 million, $16 million, and $6
million during fiscal years 2015, 2014, and 2013, respectively, in restructuring charges, net in the consolidated statements of
income. 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 income. 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 24, 2015 was $34.637
billion compared to a principal value of $32.125 billion. As of April 25, 2014 the estimated fair value was $11.856 billion
compared to a principal value of $11.375 billion. Fair value was estimated using quoted market prices for the publicly registered
senior notes, classified as Level 2 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 2015 and 2014 are as follows:
(in millions)
Cardiac and
Vascular Group
Minimally
Invasive
Therapies Group
Restorative
Therapies
Group Diabetes Group Total
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
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
The gross carrying amount and accumulated amortization of intangible assets at the end of fiscal years 2015 and 2014 are as
follows:
Fiscal Year 2015 Fiscal Year 2014
(in millions)
Gross Carrying
Amount
Accumulated
Amortization
Gross Carrying
Amount
Accumulated
Amortization
Amortizable:
Customer-related $ 18,492 $ (273) $ 76 $ (6)
Purchased technology and patents 11,118 (2,268) 3,857 (1,878)
Trademarks and tradenames 640 (363) 408 (332)
Other 79 (44) 124 (82)
Total $ 30,329 $ (2,948) $ 4,465 $ (2,298)
Non-Amortizable:
IPR&D $ 470 $ 119
Tradenames 250 —
Total $ 720 $ 119
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