3M 2015 Annual Report Download - page 66

TableofContents
Purchasedidentifiablefinite-livedintangibleassetsrelatedtoacquisitionactivityin2014totaled$34million.Theassociatedfinite-
livedintangibleassetsacquiredin2014willbeamortizedonasystematicandrationalbasis(generallystraightline)overaweighted-
averagelifeofsixyears(livesrangingfromthreeto10years).Acquiredin-processresearchanddevelopmentandidentifiable
intangibleassetsforwhichsignificantassumedrenewalsorextensionsofunderlyingarrangementsimpactedthedeterminationof
theirusefulliveswerenotmaterial.
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Divestitures:
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3MmaydivestcertainbusinessesfromtimetotimebaseduponreviewoftheCompany’sportfolioconsidering,amongotheritems,
factorsrelativetotheextentofstrategicandtechnologicalalignmentandoptimizationofcapitaldeployment,inadditionto
consideringifsellingthebusinessesresultsinthegreatestvaluecreationfortheCompanyandforshareholders.
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InJanuary2015,3M(ElectronicsandEnergyBusiness)completedthesaleofitsglobalStaticControlbusinesstoDescoIndustries
Inc.,basedinChino,California.2014salesofthisbusinesswere$46million.Thistransactionwasnotconsideredmaterial.
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Inthefourthquarterof2015,3M(SafetyandGraphicsBusiness)enteredintoagreementswithOneEquityPartnersCapitalAdvisors
L.P.(OEP)toselltheassetsof3M’slibrarysystemsbusiness.ThesalesoftheNorthAmericanbusinessandthemajorityofthe
businessoutsideofNorthAmericaclosedinOctoberandNovember2015,respectively.Thesaleoftheremainderofthelibrary
systemsbusinessisexpectedtocloseinthefirstquarterof2016.InDecember2015,3M(SafetyandGraphicsBusiness)also
completedthesaleofFaabFabricauto,awholly-ownedsubsidiaryof3M,toHillsNumberplatesLimited.Thelibrarysystems
business,partoftheTrafficSafetyandSecurityDivision,deliverscirculationmanagementsolutionstolibrarycustomerswithon-
premisehardwareandsoftware,maintenanceandservice,andanemergingcloud-baseddigitallendingplatform.FaabFabricauto,
alsopartoftheTrafficSafetyandSecurityDivision,isaleadingFrenchmanufactureroflicenseplatesandsignagesolutions.The
aggregatecashproceedsrelativetothe2015globallibrarysystemsandFaabFabricautodivestituretransactionswas$104million.
TheCompanyrecordedanetpre-taxgainof$40million(approximately$10millionaftertax)in2015asaresultofthesaleandany
adjustmentofcarryingvalue.
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InJanuary2016,3M(IndustrialBusinessGroup)enteredintoanagreementtoselltoInnovativeChemicalProductsGroup,a
portfoliocompanyofAudaxPrivateEquity,theassetsof3M’spressurizedpolyurethanefoamadhesivesbusiness(formerlyknown
asPolyfoam).Thisbusinessisaproviderofpressurizedpolyurethanefoamadhesiveformulationsandsystemsintotheresidential
roofing,commercialroofingandinsulationandindustrialfoamsegmentsintheUnitedStateswithannualsalesofapproximately$20
million.Thetransactionisexpectedtocloseinthefirstquarterof2016,subjecttocustomarycloseconditions.
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InJune2013,3M(ConsumerBusiness)completedthesaleofitsScientificAnglersandRossReelsbusinessestoTheOrvis
Company,Inc.basedinManchester,Vermont.Thistransactionwasnotconsideredmaterial
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TheaggregateoperatingincomeofthesebusinessesincludedintheCompany’soperatingresultsfortheperiodspresentedandthe
amountsofmajorassetsandliabilitiesofanyassociateddisposalgroupsclassifiedasheld-for-saleasofDecember31,2015werenot
material.
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