3M 2006 Annual Report Download - page 77

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
Supplemental information: HighJump Hornell Info-X Prec. Optics Total
Cash paid/(received) $ 24 $ 66 $ 20 $(30) $ 80
Less: Cash acquired 1   ± 
Cash paid, net of cash acquired $ 23    
Non-cash (3M shares at fair value) 43 ± ± ± 
Net assets acquired $ 66    
NOTE 3. Goodwill and Intangible Assets
Purchased goodwill from acquisitions totaled $536 million in 2006, $41 million of which is deductible for tax purposes.
Purchased goodwill in 2005 totaled $1.002 billion, primarily related to CUNO, none of which is deductible for tax
SXUSRVHV7KHVDOHRI0¶VJOREDOEUDQGHGpharmaceuticals business (Health Care) resulted in the write-off of $54 million
in goodwill, which is reflected in the 2006 translation and other column below. Changes in foreign currency exchange
rates impacted both 2006 and 2005 goodwill balances. The goodwill balance by business segment follows:
Goodwill 2005 2006
2005 trans- 2006 trans-
Dec. 31, acqui- lation Dec. 31, acqui- lation Dec. 31,
2004 sition and 2005 sition and 2006
(Millions) Balance activity other Balance activity other Balance
,QGXVWULDODQG7UDQVSRUWDWLRQ     $ 51 $1,384
+HDOWK&DUH  ±   191 (37) 713
'LVSOD\DQG*UDSKLFV  ±   12 3 886
&RQVXPHUDQG2IILFH  ±   11 8 82
Safety, Security and
Protection Services  ±   239 26 437
Electro and Communications 566 10 (51) 525 32 23 580
 7RWDO&RPSDQ\     $536 $16 $4,082
Acquired Intangible Assets
The carrying amount and accumulated amortization of acquired intangible assets as of December 31 follow:
(Millions) 2006 2005
Patents $ 41
9

Other amortizable intangible assets (primarily
tradenames and customer-related intangibles) 641 
Non-amortizable intangible assets (tradenames) 68 60
Total gross carrying amount $1,128  
$FFXPXODWHGDPRUWL]DWLRQ±SDWHQWV (266) (205)
$FFXPXODWHGDPRUWL]DWLRQ±RWKHU (154) (116)
Total accumulated amortization (420) (321)
7RWDOLQWDQJLEOHDVVHWV±QHW $ 708
$486
Amortization expense for acquired intangible assets for the years ended December 31 follows:
(Millions) 2006 2005 2004
Amortization expense $89 $48 $43
Expected amortization expense for acquired intangible assets recorded as of December 31, 2006 follows:
  
After
0LOOLRQV      
$PRUWL]DWLRQH[SHQVH      
The preceding expected amortization expense is an estimate. Actual amounts of amortization expense may differ from
estimated amounts due to additional intangible asset acquisitions, changes in foreign currency exchange rates,
impairment of intangible assets, accelerated amortization of intangible assets and other events.
$ (7)