SEC Filings

10-Q
MEDTRONIC PLC filed this Form 10-Q on 09/01/2017
Entire Document
 
Medtronic plc
Notes to Consolidated Financial Statements
(Unaudited)


9. Inventories
Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. The Company reduces the carrying value of inventories for items that are potentially excess, obsolete or slow-moving based on changes in customer demand, technology developments or other economic factors. Inventory balances, net of reserves, were as follows:
(in millions)
July 28, 2017
 
April 28, 2017
Finished goods
$
2,326

 
$
2,211

Work in-process
490

 
458

Raw materials
722

 
669

Total
$
3,538

 
$
3,338

10. Goodwill and Other Intangible Assets
Goodwill
The following table presents the changes in the carrying amount of goodwill by reportable segment:
(in millions)
Cardiac and Vascular Group
 
Minimally Invasive Therapies Group
 
Restorative Therapies Group
 
Diabetes Group
 
Total
April 28, 2017
$
6,651

 
$
20,411

 
$
9,600

 
$
1,853

 
$
38,515

Purchase accounting adjustments
54

 

 

 

 
54

Currency adjustment, net
58

 
514

 
56

 
(1
)
 
627

July 28, 2017
$
6,763

 
$
20,925

 
$
9,656

 
$
1,852

 
$
39,196

The Company assesses goodwill for impairment annually in the third quarter of the fiscal year 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 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 calculates the excess of each reporting unit's fair value over its carrying amount, including goodwill, utilizing a discounted cash flow analysis. The Company did not recognize any goodwill impairment during the three months ended July 28, 2017 or July 29, 2016.
Intangible Assets
The following table presents the gross carrying amount and accumulated amortization of intangible assets:
 
July 28, 2017
 
April 28, 2017
(in millions)
Gross Carrying Amount
 
Accumulated Amortization
 
Gross Carrying Amount
 
Accumulated Amortization
Definite-lived:
 
 
 
 
 
 
 
Customer-related
$
16,887

 
$
(2,408
)
 
$
16,862

 
$
(2,166
)
Purchased technology and patents
11,514

 
(3,883
)
 
11,461

 
(3,690
)
Trademarks and tradenames
773

 
(480
)
 
772

 
(461
)
Other
79

 
(45
)
 
77

 
(42
)
Total
$
29,253

 
$
(6,816
)
 
$
29,172

 
$
(6,359
)
Indefinite-lived:
 
 
 
 
 
 
 
IPR&D
$
569

 
 
 
$
594

 
 

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