Goodwill and Other Intangible Assets

12 Months Ended

Apr. 26, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table presents the changes in the carrying amount of goodwill by segment:


(in millions)	Cardiovascular		Neuroscience		Medical Surgical		Diabetes		Total
April 29, 2022	$	7,160	$	11,132	$	19,957	$	2,254	$	40,502
Goodwill as a result of acquisitions	726		615		—		—		1,340
Purchase accounting adjustments	(6)		2		—		—		(5)
Sale of RCS business	—		—		(208)		—		(208)
Currency translation and other	(6)		(30)		(170)		1		(204)
April 28, 2023	7,873		11,718		19,579		2,255		41,425
Goodwill as a result of acquisitions	131		—		—		—		131
Purchase accounting adjustments	(5)		—		—		—		(5)
Currency translation and other	(33)		(74)		(458)		—		(565)
April 26, 2024	$	7,966	$	11,644	$	19,121	$	2,255	$	40,986

As further described in Note 19, the Company had changes to the operating segments during fiscal year 2024. As of the beginning of fiscal year 2024, the Medical Surgical portfolio was separated into two operating segments, and each new operating segment was considered a standalone reporting unit as of the beginning of fiscal year 2024. As a result of this change, the Company allocated all goodwill that was previously assigned to the Medical Surgical reporting unit to the Surgical/Endoscopy reporting unit and the Patient Monitoring/Respiratory Interventions (PMRI) reporting unit using a relative fair value allocation approach. The effected reporting units were tested for impairment before and after the alignment. No goodwill impairment was identified in either test as of the beginning of the fiscal year 2024.

Additionally, during the fourth quarter of fiscal year 2024, the Company's operating segments changed again resulting in the two reporting units created in the first quarter to be combined into the Medical Surgical reporting unit. All goodwill that was previously assigned to the two reporting units was combined into the Medical Surgical reporting unit.

The Company did not recognize any goodwill impairment charges during fiscal years 2024 or 2022. As a result of the agreement with DaVita, as disclosed in Note 3, the Company allocated $208 million of goodwill to the RCS business that met the criteria to be classified as held for sale during the first quarter of fiscal year 2023 and was subsequently sold on April 1, 2023. Upon allocation, a goodwill impairment test was performed for the RCS business, and the Company recognized $61 million of goodwill impairment charges during fiscal year 2023. The goodwill impairment charges are recognized in other operating expense (income), net in the consolidated statements of income.

Intangible Assets

The following table presents the gross carrying amount and accumulated amortization of intangible assets:


	April 26, 2024				April 28, 2023
(in millions)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Definite-lived:
Customer-related	$	16,518	$	(8,689)	$	16,956	$	(7,979)
Purchased technology and patents	11,557		(6,868)		11,659		(6,277)
Trademarks and tradenames	424		(274)		486		(280)
Other	256		(84)		116		(69)
Total	$	28,755	$	(15,915)	$	29,217	$	(14,605)
Indefinite-lived:
IPR&D	$	385	$	—	$	232	$	—

During fiscal year 2024, the Company recognized $295 million of definite-lived intangible asset impairment charges in connection with the decision to exit its ventilator product line. The intangible asset impairment charges primarily related to purchased technology, customer-related intangibles, and trade names. During fiscal year 2022, the Company recognized $409 million of definite-lived intangible asset impairment charges in connection with the Company's decision to stop the distribution and sale of the Medtronic HVAD System. The intangible asset impairment charge primarily related to purchased technology and patents. The intangible asset impairment charges are recognized in other operating expense (income), net in the consolidated statements of income. Refer to Note 3 for additional information on what led to the impairments in fiscal year 2024 and 2022. The Company did not recognize any definite-lived intangible asset impairment charges during fiscal year 2023.

Indefinite-lived intangible asset impairment charges were not significant for fiscal year 2024, 2023, or 2022. Due to the nature of IPR&D projects, the Company may experience future delays or failures to obtain regulatory approvals to conduct clinical trials, failures of such clinical trials, delays or failures to obtain required market clearances, other failures to achieve a commercially viable product, or the discontinuation of certain projects, and as a result, may recognize impairment losses in the future.

Amortization Expense

Intangible asset amortization expense was $1.7 billion for fiscal years 2024, 2023 and 2022. Estimated aggregate amortization expense by fiscal year based on the current carrying value and remaining estimated useful lives of definite-lived intangible assets at April 26, 2024, excluding any possible future amortization associated with acquired IPR&D which has not met technological feasibility, is as follows:


(in millions)	Amortization Expense
2025	$	1,635
2026	1,623
2027	1,600
2028	1,550
2029	1,471