ACQUISITIONS

In September 2017 we completed the acquisition of NOVADAQ Technologies Inc. (NOVADAQ) for total consideration of approximately $716. NOVADAQ is a leading developer of fluorescence imaging technology that provides surgeons with visualization of blood flow in vessels and related tissue perfusion in cardiac, cardiovascular, gastrointestinal, plastic, microsurgical, and reconstructive procedures. This acquisition enhances product offerings within our MedSurg segment.

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. The finalization of our purchase price allocation resulted in a $30 increase in goodwill from our preliminary allocation in 2016.

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 enhanced our product offerings within our MedSurg segment. The finalization of our purchase price allocation resulted in a $19 decrease in goodwill from our preliminary allocation in 2016.

The Other acquisitions in 2016 include the acquisition of the Synergetics neuro portfolio (Synergetics). The Synergetics acquisition enhanced our product offerings within our MedSurg segment. The finalization of our purchase price allocation resulted in an $11 increase in goodwill from our preliminary allocation in 2016.

Purchase price allocations for NOVADAQ and certain Other acquisitions in 2017 and 2016 are based on preliminary valuations. Our estimates and assumptions are subject to change within the measurement period.

Goodwill acquired with the Sage and Synergetics acquisitions is deductible for tax purposes.



Purchase Price Allocation of Acquired Net Assets
	2017						2016
	NOVADAQ			Other			Sage			Physio			Other
Purchase price paid	$	716		$	38		$	2,870		$	1,299		$	348
Contingent consideration	—			5			5			—			27
Loss on settlement of pre-existing contract	—			—			—			—			(19		)
Total consideration	$	716		$	43		$	2,875		$	1,299		$	356
Tangible assets:
Cash	$	42		$	—		$	91		$	32		$	1
Accounts receivable	20			1			29			107			17
Inventory	22			2			63			61			5
Other assets	26			1			80			103			22
Liabilities	(54		)	(2		)	(83		)	(364		)	(37		)
Intangible assets:
Customer relationship	18			—			930			344			12
Trade name	1			—			70			160			10
Developed technology and patents	139			33			173			226			119
Non-compete	—			—			—			—			2
IPR&D	—			—			—			7			7
Goodwill	502			8			1,522			623			199
	$	716		$	43		$	2,875		$	1,299		$	357
Weighted-average life of intangible assets	15			15			15			14			12



Estimated Amortization Expense
Remainder of 2017		2018		2019		2020		2021
$	90	$	372	$	348	$	329	$	319