Medtronic 2012 Annual Report Download - page 95

Download and view the complete annual report

Please find page 95 of the 2012 Medtronic annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

The value attributable to IPR&D has been capitalized as an indefinite-lived intangible asset. The goodwill
is not deductible for tax purposes.
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, Inc. (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
______
______
78
Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)