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Acquisitions | 12 Months Ended
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Jun. 30, 2017
Business Combinations [Abstract] |
Acquisitions | 2. Acquisitions While we have completed acquisitions impacting the Pharmaceutical segment during fiscal 2017, the pro forma results of operations and the results of operations for acquired businesses since the acquisition dates have not been separately disclosed because the effects were not significant compared to the consolidated financial statements, individually or in the aggregate. The cash paid for these acquisitions, net of cash acquired, was $132 million. During the three months ended June 30, 2017, we completed the largest of these acquisitions for a purchase price of approximately $80 million, which was paid in cash, and potential maximum contingent payments of $230 million. As of June 30, 2017, we recorded a $19 million contingent consideration obligation in connection with this acquisition. Cordis On October 2, 2015, we acquired Cordis from Ethicon, Inc., a wholly-owned subsidiary of Johnson & Johnson, for $1.9 billion using cash on hand and proceeds from our debt offering in June 2015. The acquisition of Cordis, a global manufacturer and distributor of interventional cardiology devices and endovascular solutions with operations in more than 50 countries, expands our Medical segment's portfolio of self-manufactured products and its geographic scope. We closed the Cordis acquisition in 20 principal countries on October 2, 2015, and acquired control of, as described in GAAP, and the rights to, the net economic benefit from the entire Cordis business in the remaining countries at that time. Transaction and integration costs associated with the acquisition of Cordis were $61 million and $78 million during fiscal 2017 and 2016, respectively, and are included in amortization and other acquisition-related costs in the consolidated statements of earnings. naviHealth On August 26, 2015, we acquired a 71 percent ownership interest in naviHealth for $238 million, net of cash acquired of $53 million. We funded the acquisition with cash on hand. The acquisition of naviHealth, a leader in post-acute care management solutions, expands our ability to serve hospitals, other healthcare providers, and payers. We consolidate the results of naviHealth in our consolidated financial statements and report its consolidated results in our Medical segment. The terms of the agreement provide us with the option to acquire any remaining noncontrolling interests at any time after the two-year anniversary of the closing. The third-party noncontrolling interest holders also hold an option, which allows them to sell their noncontrolling interests to us at any time after the two-year anniversary of the closing, or earlier if a trigger event occurs. Refer to Note 12 for further information on the redeemable noncontrolling interests. We also completed acquisitions within naviHealth during fiscal 2016 for $242 million, which were paid in cash and increased our ownership interest to 82 percent. Harvard Drug On July 2, 2015, we completed the acquisition of The Harvard Drug Group ("Harvard Drug") for $1.1 billion using cash on hand and proceeds from our debt offering in June 2015. The acquisition of Harvard Drug, a distributor of generic pharmaceuticals, over-the-counter healthcare and related products to retail, institutional, and alternate care customers, enhances our Pharmaceutical segment's generic pharmaceutical distribution and related services businesses. Harvard Drug also repackages generic pharmaceuticals and over-the-counter healthcare products. Fair Value of Assets Acquired and Liabilities Assumed The allocation of the fair value of assets acquired and liabilities assumed for the acquisitions of Cordis, Harvard Drug and naviHealth were finalized during the fiscal year ended June 30, 2017. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition dates for Cordis, naviHealth and Harvard Drug:
(in millions) | Cordis |  | naviHealth |  | Harvard Drug
Identifiable intangible assets: |  |  |  |  |
Customer relationships (1) | $ | 225 |  |  | $ | 38 |  |  | $ | 470 |
Trade names (2) | 125 |  |  | 16 |  |  | 130 |
Developed technology (3) | 395 |  |  | 61 |  |  | — |
In-process research and development (4) | 55 |  |  | — |  |  | — |
Total identifiable intangible assets acquired | 800 |  |  | 115 |  |  | 600 |
Cash and equivalents | — |  |  | 53 |  |  | 44 |
Trade receivables | — |  |  | 31 |  |  | 67 |
Inventories | 205 |  |  | — |  |  | 49 |
Prepaid expenses and other | 4 |  |  | 14 |  |  | 11 |
Property and equipment | 97 |  |  | 5 |  |  | 16 |
Other assets | 44 |  |  | 1 |  |  | — |
Accounts payable | (82 | ) |  | (2 | ) |  | (47 | )
Other accrued liabilities | (85 | ) |  | (95 | ) |  | (37 | )
Deferred income taxes and other liabilities | (13 | ) |  | (33 | ) |  | (188 | )
Redeemable noncontrolling interests | — |  |  | (119 | ) |  | — |
Total identifiable net assets/(liabilities) acquired | 970 |  |  | (30 | ) |  | 515 |
Goodwill | 914 |  |  | 321 |  |  | 634 |
Total net assets acquired | $ | 1,884 |  |  | $ | 291 |  |  | $ | 1,149 |
(1) | The weighted-average useful lives of customer relationships range from 4 to 13 years.
(2) | The weighted-average useful lives of trade names range from 10 to 20 years.
(3) | The weighted-average useful life of developed technology is 10 years.
(4) | Acquired in-process research and development intangible assets have an indefinite life.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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- References No definition available. + Details
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