Business Combinations and Divestitures (Tables)

6 Months Ended

Jul. 01, 2012

The following table summarizes the consideration transferred to acquire Synthes, valued on the acquisition date of June 14th, 2012:



(Dollars in Millions)
Cash (multiply 55.65CHF by shares of Synthes common stock outstanding by the exchange rate)^(A)	$	6,902
Common Stock (multiply 1.717 by shares of Synthes common stock outstanding by J&J stock price)^(B)	$	13,335
Total fair value of consideration transferred	$	20,237

(A) Synthes common stock outstanding of 118.7 million shares as of the acquisition date and CHF/USD exchange rate of .95674

(B) Johnson & Johnson closing stock price on the New York Stock Exchange as of acquisition date of $65.45 per share.

The following table presents the preliminary allocation of the purchase price related to Synthes, Inc. as of the date of acquisition:



(Dollars in Millions)
Cash & Cash equivalents	$	2,749
Inventory⁽¹⁾	889
Accounts Receivable, net	738
Other current assets	249
Property, plant and equipment	1,253
Goodwill	5,371
Intangible assets	12,929
Other non-current assets	46
Total Assets Acquired	24,224

Current liabilities	825
Deferred Taxes	2,731
Other non-current liabilities	431
Total Liabilities Assumed	3,987

Net Assets Acquired	$	20,237

(1) Includes $0.4 billion related to inventory step-up.

The preliminary purchase price allocation to the identifiable intangible assets included in the current period balance sheet is as follows:



(Dollars in Millions)
Intangible assets with definite lives:
Customer relationships	$	9,950
Patents and technology	1,495
Total amortizable intangibles	11,445
Trademark and Trade name	1,420
In-process research and development	64
Total intangible assets	$	12,929