3M 2009 Annual Report Download - page 72
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66
Acquired Intangible Assets
For 2009, acquired intangible asset activity through business combinations increased the gross carrying amount by
$93 million. Balances are also impacted by changes in foreign currency exchange rates. The gross carrying amount
and accumulated amortization of acquired intangible assets as of December 31 follow:
(Millions) 2009 2008
Patents ......................................................................................................................
.
$ 457 $ 475
Other amortizable intangible assets (primarily tradenames and customer-related
intangibles) ............................................................................................................
.
1,519 1,381
Non-amortizable intangible assets (tradenames) .....................................................
.
138 130
Total gross carrying amount......................................................................................
.
$ 2,114 $ 1,986
Accumulated amortization — patents .......................................................................
.
(339) (318)
Accumulated amortization — other ...........................................................................
.
(433) (270)
Total accumulated amortization.............................................................................
.
(772) (588)
Total intangible assets — net....................................................................................
.
$ 1,342 $ 1,398
3M has non-amortizable tradenames with a carrying value of $138 million as of December 31, 2009, and $130 million
as of December 31, 2008. These tradenames are not amortized because of the long-time established name
recognition in their respective industries.
Amortization expense for acquired intangible assets increased significantly in 2009 and 2008 due to the significant
amount of acquired intangibles in 2008 and 2007 (Note 2). Amortization expense for the years ended December 31
follows:
(Millions) 2009 2008 2007
Amortization expense..............
$ 181 $ 122 $ 87
Expected amortization expense for acquired intangible assets recorded as of December 31, 2009 follows:
(Millions) 2010 2011 2012 2013 2014 After 2014
Amortization expense.............. $ 161 $ 133 $ 126 $ 119 $ 111 $ 554
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. 3M expenses the
costs incurred to renew or extend the term of intangible assets.