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62
2009 acquisitions:
During 2009, 3M completed four business combinations. The purchase price paid for these business combinations
(net of cash acquired) and certain acquisition costs and contingent consideration paid for pre-2009 business
combinations during 2009 aggregated to $69 million.
(1) In January 2009, 3M (Safety, Security and Protection Services Business) purchased all of the outstanding shares
of Alltech Solutions, a provider of water pipe rehabilitation services based in Moncton, New Brunswick, Canada.
(2) In February 2009, 3M (Industrial and Transportation Business) purchased the assets of Compac Corp.’s pressure
sensitive adhesive tape business, a global leader in providing custom solutions in coating, laminating and converting
flexible substrates headquartered in Hackettstown, N.J.
(3) In April 2009, 3M (Industrial and Transportation Business) purchased all of the outstanding shares of Meguiar’s
International, UK, a distributor of Meguiar’s, Inc. products based in Daventry, United Kingdom.
(4) In July 2009, 3M (Consumer and Office Business) purchased the ACE® branded (and related brands) elastic
bandage, supports and thermometer product lines, which are sold broadly through consumer channels in North
America.
Purchased identifiable intangible assets related to the four acquisitions that closed in 2009 totaled $28 million. This
included $20 million of identifiable intangible assets that will be amortized generally on a straight-line basis over a
weighted-average life of eight years (lives ranging from three to 12 years) and $8 million of indefinite-lived intangible
assets related to the well-recognized ACE® brand. Acquired identifiable intangible assets for which significant
assumed renewals or extensions of underlying arrangements impacted the determination of their useful lives were
not material.
NOTE 3. Goodwill and Intangible Assets
Purchased goodwill from acquisitions totaled $255 million in 2011, $7 million of which is deductible for tax purposes.
Purchased goodwill from acquisitions totaled $978 million in 2010, $1 million of which is deductible for tax purposes.
The acquisition activity in the following table also includes the net impact of adjustments to the preliminary allocation
of purchase price for prior year acquisitions, which increased goodwill by $4 million in 2011 and increased goodwill
by $2 million in 2010. The amounts in the “Translation and other” column in the following table primarily relate to
changes in foreign currency exchange rates. The goodwill balance by business segment follows:
Goodwill
(Millions)
Dec. 31,
2009
Balance
2010
acquisition
activity
2010
translation
and other
Dec. 31,
2010
Balance
2011
acquisition
activity
2011
translation
and other
Dec. 31,
2011
Balance
Industrial and
Transportation ...... $ 1,757 $ 8 $ 18 $ 1,783
$ 205 $ (27) $ 1,961
Health Care .......... 1,007 520 (21 ) 1,506 3 5 1,514
Consumer and Office . . 155 24 8 187 42 (1) 228
Safety, Security and
Protection Services . . 1,220 428 22 1,670 (1) 6 1,675
Display and Graphics . . 990 —
4 994 4 (5) 993
Electro and
Communications .... 703 —
(23 ) 680 6 (10) 676
Total Company ....... $ 5,832 $ 980 $ 8 $ 6,820
$ 259 $ (32) $ 7,047
As discussed in Note 17 to the Consolidated Financial Statements, effective in the first quarter of 2011, 3M made
certain product moves between its business segments, with the resulting impact reflected in the goodwill balances by
business segment above for all periods presented. For those changes that resulted in reporting unit changes, the
Company applied the relative fair value method to determine the impact to reporting units. During the first quarter of
2011, the Company completed its assessment of any potential goodwill impairment for reporting units impacted by
this new structure and determined that no impairment existed. The Company also completed its annual goodwill
impairment test in the fourth quarter of 2011 for all reporting units and determined that no impairment existed. In
addition, the Company had no impairments of goodwill in prior years.