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Please find page 64 of the 2015 3M annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.TableofContents
measuretheinvestmentatcostlessimpairmentplusorminusobservablepricechanges(inorderlytransactions).TheASUalso
establishesanincrementalrecognitionanddisclosurerequirementrelatedtothepresentationoffairvaluechangesoffinancial
liabilitiesforwhichthefairvalueoption(FVO)hasbeenelected.Underthisguidance,anentitywouldberequiredtoseparately
presentinOCItheportionofthetotalfairvaluechangeattributabletoinstrument-specificcreditriskasopposedtoreflectingthe
entireamountinearnings.ForderivativeliabilitiesforwhichtheFVOhasbeenelected,however,anychangesinfairvalue
attributabletoinstrument-specificcreditriskwouldcontinuetobepresentedinnetincome,whichisconsistentwithcurrent
guidance.For3M,thisstandardiseffectivebeginningJanuary1,2018viaacumulative-effectadjustmenttobeginningretained
earnings,exceptforguidancerelativetoequitysecuritieswithoutreadilydeterminablefairvalueswhichisappliedprospectively.
TheCompanyiscurrentlyassessingthisASU’simpactson3M’sconsolidatedresultsofoperationsandfinancialcondition.
NOTE2.AcquisitionsandDivestitures
Acquisitions:
3Mmakesacquisitionsofcertainbusinessesfromtimetotimethatarealignedwithitsstrategicintentwithrespectto,amongother
factors,growthmarketsandadjacentproductlinesortechnologies.
Theimpactontheconsolidatedbalancesheetofthepurchasepriceallocationsrelatedto2015acquisitionsandassignedweighted-
averageintangibleassetlives,includingadjustmentsrelativetootheracquisitionswithinthemeasurementperiod,follows.The
allocationofpurchaseconsiderationrelatedtotheAugust2015CapitalSafetyandPolyporeSeparationsMediaacquisitionsis
consideredpreliminary,primarilywithrespecttocertaintax-relatedassetsandliabilities.3Mexpectstofinalizetheallocationof
purchasepricewithintheoneyearmeasurement-periodfollowingtheseacquisitions.Adjustmentstopreliminaryallocations
primarilyrelatedtotheidentificationandvaluationofcertainindefinite-livedintangibleassets(furtherdiscussedbelow).Thechange
toprovisionalamountsresultedinanimmaterialimpacttoresultsofoperationsinthefourthquarterof2015,aportionofwhich
relatestoearlierquartersinthemeasurementperiod.
2015AcquisitionActivity
Finite-Lived
Intangible-Asset
(Millions) Capital Polypore
Weighted-
Average
Asset(Liability) Safety SeparationsMedia Other Total Lives(Years)
Accountsreceivable $ 66 $ 30 $ 7 $ 103
Inventory 63 35 4 102
Othercurrentassets 10 1 1 12
Property,plant,andequipment 36 128 7 171
Purchasedfinite-livedintangibleassets:
Customerrelatedintangibleassets 445 270 40 755 16
Patents 44 11 7 62 7
Othertechnology-basedintangibleassets 85 42 1 128 7
Definite-livedtradenames 26 6 1 33 16
Otheramortizableintangibleassets — — 2 24
Purchasedindefinite-livedintangibleassets 520 — — 520
Purchasedgoodwill 1,764 636 95 2,495
Accountspayableandotherliabilities,netofotherassets (105) (122) (5) (232)
Interestbearingdebt (766) — — (766)
Deferredtaxasset/(liability) (464) — (7) (471)
Netassetsacquired $ 1,724 $ 1,037 $ 153 $ 2,914
Supplementalinformation:
Cashpaid $ 1,758 $ 1,037 $ 154 $ 2,949
Less:Cashacquired 34 — 1 35
Cashpaid,netofcashacquired $ 1,724 $ 1,037 $ 153 $ 2,914
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