3M 2007 Annual Report Download - page 56

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11) In October 2007, 3M (Industrial and Transportation Business) purchased 100 percent of the outstanding shares of
Venture Tape Corp. and certain related entities, a global provider of pressure sensitive adhesive tapes based in
Rockland, Mass.
12) In October 2007, 3M (Display and Graphics Business) purchased certain assets of Macroworx Media Pvt Ltd., a
software company that specializes in the design and development of digital signage solutions based in Bangalore,
India.
13) In October 2007, 3M (Health Care Business) purchased 100 percent of the outstanding shares of Lingualcare Inc.,
a Dallas-based orthodontic technology and services company offering the iBraces system, a customized, lingual
orthodontic solution.
14) In November 2007, 3M (Industrial and Transportation Business) purchased certain assets of Standard Abrasives,
a manufacturer of coated abrasive specialties and non-woven abrasive products for the metalworking industry
headquartered in Simi Valley, Ca.
15) In November 2007, 3M (Industrial and Transportation Business) purchased 100 percent of the outstanding shares
of Unifam Sp. z o.o., a manufacturer of cut-off wheels, depressed center grinding wheels and flap discs based in
Poland.
16) In November 2007, 3M (Industrial and Transportation Business) purchased certain assets of Bondo Corp., a
manufacturer of auto body repair products for the automotive aftermarket and various other professional and
consumer applications based in Atlanta, Ga.
In addition to the business combinations above, 3M periodically acquires certain tangible and/or intangible assets and
purchases interests in certain enterprises that do not otherwise qualify for accounting as business combinations.
These transactions are largely reflected as additional asset purchase and investment activity.
Purchased identifiable intangible assets for the 16 business combinations closed during the twelve months ended
December 31, 2007 totaled $124 million and will be amortized on a straight-line basis over lives ranging from 2 to 10
years (weighted-average life of six years).
In 2007 and 2006, pro forma information related to acquisitions was not included because the impact on the
Company’s consolidated results of operations was not considered to be material. There were no material in-process
research and development charges associated with 2007, while 2006 included $95 million in charges for the Brontes
Technologies Inc. acquisition. The purchase price allocation of certain 2007 business combinations is considered
preliminary. The impact on the Consolidated Balance Sheet of the purchase price allocations related to acquisitions
and adjustments relative to other acquisitions within the allocation period follow:
Asset (Liability) 2007 2006
(Millions) Impact Impact
Accounts receivable $ 69 $ 76
Inventory 79 55
Other current assets 5 8
Property, plant, and
equipment – net 68 65
Purchased intangible assets 131 282
Purchased goodwill 326 536
In-process R&D 1 95
Accounts payable and other current
liabilities, net of other assets (115) (152)
Deferred tax liability (12) (77)
Net assets acquired $552 $888
Supplemental information:
Cash paid $546 $962
Less: Cash acquired 774
Cash paid, net of cash acquired $539 $888
Non-cash (3M shares at fair value) 13 –
Net assets acquired $552 $888
Year 2006 acquisitions:
During the 12 months ended December 31, 2006, 3M completed 19 business combinations for a total purchase price
of $888 million, net of cash acquired. Purchased identifiable intangible assets of $282 million for these acquisitions will
be amortized on a straight-line basis over lives ranging from 1 to 17 years (weighted-average life of 9 years). The