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Acquisitions and Divestitures (Tables) | 12 Months Ended
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Jun. 30, 2019
Business Combinations [Abstract] |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the acquisition date for the Patient Recovery Business:
(in millions) | Patient Recovery Business
Identifiable intangible assets: |
Customer relationships (1) | $ | 1,733 |
Trade names (2) | 187 |
Developed technology and other (3) | 732 |
Total identifiable intangible assets acquired | 2,652 |
Cash and equivalents | 22 |
Inventories | 420 |
Prepaid expenses and other | 252 |
Property and equipment, net | 739 |
Other accrued liabilities | (322 | )
Deferred income taxes and other liabilities | (982 | )
Total identifiable net assets acquired | 2,781 |
Goodwill | 3,299 |
Total net assets acquired | $ | 6,080 |
(1) | The range of useful lives for customer relationships is 10 to 18 years.
(2) | The useful life of trade names is 15 years.
(3) | The useful life of developed technology is 15 years.
Divestitures China Divestiture In February 2018, we sold our pharmaceutical and medical products distribution business in China ("China distribution business") for proceeds of $861 million (after adjusting for third party indebtedness and preliminary transaction adjustments) to Shanghai Pharmaceuticals Holding Co., Ltd. The proceeds are not reflective of tax obligations due in connection with the sale, for which we have recorded a liability of $59 million. The purchase price was subject to adjustment based on working capital requirements as set forth in the definitive agreement, for which there were no significant changes in fiscal 2019. We determined that the sale of the China distribution business did not meet the criteria to be classified as discontinued operations. The China distribution business primarily operated within our Pharmaceutical segment, and a smaller portion operated within our Medical segment. During the fiscal year ended 2018, we recognized a pre-tax loss of $41 million related to this divestiture. naviHealth In August 2018, we sold our 98 percent ownership interest in naviHealth to investor entities controlled by Clayton, Dubilier & Rice in exchange for cash proceeds of $737 million (after adjusting for certain fees and expenses) and a 44 percent equity interest in a partnership that owns 100 percent of the equity interest of naviHealth. We also have certain call rights to reacquire naviHealth. Refer to Note 5 for further discussion regarding this investment. For the fiscal year ended June 30, 2019, we recognized a pre-tax gain of $508 million related to this divestiture in impairments and (gain)/loss on disposal of assets in our consolidated statement of earnings. This gain includes our initial recognition of an equity method investment for $358 million and the derecognition of redeemable noncontrolling interests of $12 million. The fiscal 2019 tax expense as a result of this transaction was $130 million. We determined that the sale of the naviHealth business did not meet the criteria to be classified as discontinued operations. The naviHealth business operated within our Medical segment.

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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=116869197&loc=d3e4845-128472 + Details
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