Medtronic 2013 Annual Report Download - page 90

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75732me_10K.indd 75 6/25/13 6:39 PM
Table of Contents
Medtronic, Inc.
Notes to Consolidated Financial Statements (Continued)
The Company accounted for the acquisition of Salient as a business combination. During the first quarter of fiscal year 2013, the
Company recorded minor adjustments to other intangible assets, goodwill, and long-term deferred tax liabilities, net as a result
of finalizing the valuation for fair value of intangible assets acquired. The Company recorded the identifiable assets acquired and
liabilities assumed at fair value as follows:
(in millions)
Current assets $ 20
Property, plant, and equipment 11
IPR&D 44
Other intangible assets 154
Goodwill 348
Other assets 1
Total assets acquired 578
Current liabilities 43
Long-term deferred tax liabilities, net 38
Total liabilities assumed 81
Net assets acquired $ 497
PEAK Surgical, Inc.
On August 31, 2011, the Company acquired PEAK Surgical, Inc. (PEAK). PEAK develops and markets tissue dissection devices
incorporating advanced energy technology. Total consideration for the transaction was approximately $113 million. Medtronic
had previously invested in PEAK and held an 18.9 percent ownership position in the company. Net of this ownership position,
the transaction value was approximately $96 million. Based upon the acquisition valuation, the Company acquired $74 million
of technology-based intangible assets that had an estimated useful life of 12 years at the time of acquisition, $17 million of net
tangible liabilities, and $56 million of goodwill. Acquired goodwill is not deductible for tax purposes.
The Company accounted for the acquisition of PEAK 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 $ 5
Property, plant, and equipment 5
Other intangible assets 74
Goodwill 56
Total assets acquired 140
Current liabilities 10
Long-term deferred tax liabilities, net 17
Total liabilities assumed 27
Net assets acquired $ 113
Other Acquisitions and Acquisition-Related Items
During fiscal year 2012, the Company recorded $12 million of acquisition-related items, including charges of $45 million related
to the change in fair value of contingent milestone payments associated with acquisitions subsequent to April 29, 2009. Additionally,
in connection with the acquisitions of Salient and PEAK, the Company recognized gains of $32 million and $6 million, respectively,
on its previously-held investments. In connection with these acquisitions, the Company began to assess and formulate a plan for
the elimination of duplicative positions and the termination of certain contractual obligations. As a result, the Company incurred
approximately $5 million of certain acquisition-related costs, which included legal fees, severance costs, change in control costs,
72