3M 2010 Annual Report Download - page 67

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61
June 30, 2009. The Company also completed its annual goodwill impairment test in the fourth quarter of 2010 for all
reporting units and determined that no impairment existed. In addition, the Company had no impairments of goodwill
in prior years.
Acquired Intangible Assets
For 2010, intangible assets (excluding goodwill) acquired through business combinations increased the gross
carrying amount by $663 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)
2010
2009
Patents .....................................................................
$
551
$
457
Other amortizable intangible assets (primarily tradenames and customer-related
intangibles) ................................................................
2,016
1,528
Non-amortizable intangible assets (tradenames) .................................
125
129
Total gross carrying amount ...................................................
$
2,692
$
2,114
Accumulated amortization — patents ...........................................
(345
)
(339
)
Accumulated amortization — other .............................................
(527
)
(433
)
Total accumulated amortization ..............................................
(872
)
(772
)
Total intangible assets — net ..................................................
$
1,820
$
1,342
3M has certain tradenames that 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 compared to 2008 due to the
significant amount of acquired intangibles in 2008 (Note 2). Amortization expense for the years ended December 31
follows:
(Millions)
2010
2009
2008
Amortization expense ...........................
$
176
$
181
$
122
Expected amortization expense for acquired amortizable intangible assets recorded as of December 31, 2010
follows:
(Millions)
2011
2012
2013
2014
2015
After 2015
Amortization expense ............................
$
208
$
200
$
189
$
169
$
157
$
772
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.