ACQUISITIONS

In April 2016 we completed the acquisition of Sage Products, LLC (Sage) for total consideration of approximately $2,875. Sage develops, manufactures and distributes intensive care disposable products. This acquisition enhanced our product offerings within our MedSurg segment. Purchase price allocations for this acquisition were based on preliminary valuations. Our estimates and assumptions are subject to change within the measurement period.

In April 2016 we completed the acquisition of Physio-Control International, Inc. (Physio) for total net consideration of approximately $1,299. Physio develops, manufactures and markets monitors/defibrillators, AEDs and CPR-assist devices along with data management and support services. This acquisition enhances our product offerings within our MedSurg segment. Purchase price allocations for this acquisition were based on preliminary valuations. Our estimates and assumptions are subject to change within the measurement period.

The Other acquisitions in 2016 include the acquisition of the Synergetics neuro portfolio (Synergetics). The Synergetics acquisition enhances our product offerings within our MedSurg segment. Purchase price allocations for the Other acquisitions were based on preliminary valuations. Our estimates and assumptions are subject to change within the measurement period.

The Other acquisitions in 2015 include the acquisition of certain assets of CHG Hospital Beds, Inc. (CHG). The CHG acquisition enhances our product offerings within our MedSurg segment. The measurement period for CHG is complete. Revisions to the original purchase price allocation were nominal.

Goodwill acquired with the Sage, Synergetics and CHG acquisitions is deductible for tax purposes. Supplemental pro forma combined statements of earnings have not been presented for the Sage and Physio acquisitions as the impact of their results of operations were not material to the Consolidated Statements of Earnings.



Purchase Price Allocation of Acquired Net Assets
	2016									2015
	Sage			Physio			Other			Other
Purchase price paid	$	2,870		$	1,299		$	348		$	140
Contingent consideration	5			—			27			9
Loss on settlement of pre-existing contract	$	—		$	—		$	(19	)	$	—
Total consideration	$	2,875		$	1,299		$	356		$	149
Tangible assets acquired:
Cash	91			32			1			—
Accounts receivable	29			106			17			4
Inventory	63			66			5			9
Other assets	75			99			21			13
Liabilities	(81		)	(363		)	(29		)	(7		)
Goodwill	1,525			625			180			62
Intangible assets:
Customer relationship	930			341			12			13
Trade name	70			160			13			2
Developed technology and patents	173			226			127			53
Non-compete	—			—			2			—
IPRD	—			7			7			—
	$	2,875		$	1,299		$	356		$	149
Weighted average life of intangible assets	15			14			12			10