Medtronic plcMDT

Medtronic plc Goodwill & Intangibles Disclosure

10-KFiled Jun 20, 20253 min read
Goodwill and Other Intangible Assets
Goodwill
The following table presents the changes in the carrying amount of goodwill by segment:
(in millions)Cardiovascular NeuroscienceMedical SurgicalDiabetesTotal
April 28, 2023$7,873 $11,718 $19,579 $2,255 $41,425 
Goodwill as a result of acquisitions131 — — — 131 
Purchase accounting adjustments(5)— — — (5)
Currency translation and other(33)(74)(458)— (565)
April 26, 20247,966 11,644 19,121 2,255 40,986 
Goodwill as a result of acquisitions— — 108 — 108 
Purchase accounting adjustments 2 — (2)— — 
Currency translation and other50 72 521 1 643 
April 25, 2025$8,017 $11,716 $19,748 $2,255 $41,737 
The Company did not recognize any goodwill impairment charges during fiscal years 2025 or 2024. 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 (income) expense, net in the consolidated statements of income.
Intangible Assets
The following table presents the gross carrying amount and accumulated amortization of intangible assets:
April 25, 2025April 26, 2024
(in millions)Gross Carrying AmountAccumulated AmortizationGross Carrying AmountAccumulated Amortization
Definite-lived:
Customer-related$16,550 $(9,650)$16,518 $(8,689)
Purchased technology and patents11,600 (7,514)11,557 (6,868)
Trademarks and tradenames421 (283)424 (274)
Other355 (101)256 (84)
Total$28,925 $(17,547)$28,755 $(15,915)
Indefinite-lived:
IPR&D$289 $— $385 $— 
The Company did not recognize any definite-lived intangible asset impairment charges during fiscal years 2025 and 2023. 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. The intangible asset impairment charges are recognized in other operating (income) expense, net in the consolidated statements of income. Refer to Note 3 for additional information on what led to the impairments in fiscal year 2024.
There were no indefinite-lived intangible asset impairment charges during fiscal year 2025. Indefinite-lived intangible asset impairment charges were not significant for fiscal year 2024 and 2023. 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 $1.8 billion for fiscal year 2025, including $151 million of accelerated amortization on certain intangible assets related to product line exits within the Cardiovascular Portfolio. Intangible asset amortization expense was $1.7 billion for fiscal years 2024 and 2023. 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 25, 2025, excluding any possible future amortization associated with acquired IPR&D which has not met technological feasibility, is as follows:
(in millions)Amortization
Expense
2026$1,677 
20271,654 
20281,582 
20291,479 
20301,343 
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Historical Timeline

Fiscal YearFiled
2025Jun 20, 2025Showing above
2024Jun 20, 2024
2023Jun 22, 2023
2022Jun 23, 2022
2021Jun 25, 2021
2020Jun 19, 2020
2019Jun 21, 2019
2017Jun 27, 2017
2016Jun 28, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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