3M 2006 Annual Report Download - page 75

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
2006 IMPACT
Asset (Liability) Total
(Millions) Impact
Accounts receivable $ 76
Inventory 55
Other current assets 8
Property, plant, and
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Purchased intangible assets 282
Purchased goodwill 536
In-process R&D 95
Accounts payable and other
current liabilities (152)
Deferred tax liability (77)
Net assets acquired $ 888
Supplemental information:
Cash paid $ 962
Less: Cash acquired 74
Cash paid, net of cash acquired $ 888
Year 2005 acquisitions:
The Company acquired CUNO on August 2, 2005. The operating results of CUNO are included in the Industrial and
Transportation Business segment. CUNO is engaged in the design, manufacture and marketing of a comprehensive
line of filtration products for the separation, clarification and purification of fluids and gases. 3M and CUNO have
complementary sets of filtration technologies, creating an opportunity to bring an even wider range of filtration
solutions to customers around the world. 3M acquired CUNO for approximately $1.36 billion, comprised of
$1.27 billion of cash paid (net of cash acquired) and the acquisition of $80 million of debt, most of which has been
repaid.
Purchased identifiable intangible assets of $268 million for the CUNO acquisition will be amortized on a straight-line
basis over lives ranging from 5 to 20 years (weighted-average life of 15 years). In-process research and development
charges from the CUNO acquisition were not material. Pro forma information related to this acquisition is not included
EHFDXVHLWVLPSDFWRQWKH&RPSDQ\¶VFRQVROLGDWHGUHVXOWVof operations is not considered to be material. The
allocation of the purchase price is presented in the table that follows.
 
2005 CUNO ACQUISITION
Asset (Liability)
(Millions)
Accounts receivable $ 96
Inventory 61
3URSHUW\SODQWDQGHTXLSPHQW±QHW  
Purchased intangible assets 268
Purchased goodwill 992
Other assets 30
Deferred tax liability (102)
Accounts payable and other current liabilities (104)
Interest bearing debt (80)
Other long-term liabilities (16)
Net assets acquired $1,266
Supplemental information:
Cash paid $1,294
Less: Cash acquired 28
Cash paid, net of cash acquired $1,266