3M 2006 Annual Report Download - page 76

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During the year ended December 31, 2005, 3M entered into two immaterial additional business combinations for a
total purchase price of $27 million, net of cash acquired.
1) 3M (Electro and Communications Business) purchased ceUWDLQDVVHWVRI6LHPHQV8OWUDVRXQGGLYLVLRQ¶VIOH[LEOH
circuit manufacturing line, a U.S. operatiRQ7KHDFTXLUHGRSHUDWLRQSURGXFHVIOH[LEle interconnect circuits that provide
electrical connections between components in electronics systems used primarily in the transducers of ultrasound
machines.
2) 3M (Display and Graphics Business) purchased certain assets of Mercury Online Solutions Inc., a U.S. operation.
The acquired operation provides hardware and software technologies and network management services for digital
signage and interactive kiosk networks.
Year 2004 acquisitions:
In February 2004, 3M (Industrial and Transportation Business) purchased 100 percent of the outstanding common
shares of HighJump Software Inc., a U.S. company that provides supply chaiQH[HFXWLRQVRIWZDUHDQGVROXWLRQV7KH
WRWDOSXUFKDVHSULFHRIDSSUR[LPDWHO\PLOOLRQLQFOXGHGmillion of cash paid (net of cash acquired) plus
541,581 shares of 3M common stock. The 3M common stock had a market value of $43 million at the acquisition
measurement date and was previously held as 3M treasury stock.
In March 2004, 3M (Safety, Security and Protection Services Business) purchased 91 percent of the outstanding
shares of Hornell Holding AB, a Swedish company, for DSSUR[LPDWHO\PLOOLRQLQFOXGLQJDVVXPSWLRQRIGHEW7KLV
$95 million includes $57 million of cash paid (net of cash acquired) and the acquisition of $38 million of debt, most of
which has been repaid. Subsequently, 3M acquired all ofWKHUHPDLQLQJRXWVWDQGLQJVKDUHVIRUDSSUR[LPDWHO\
PLOOLRQLQFDVK+RUQHOO+ROGLQJ$%LVDJOREDOVXSSOLHURI personal protective equipment for welding applications.
In August 2004, 3M (Health Care Business) purchased 100 percent of the outstanding shares of Info-X Inc., a U.S.
company, for $17 million in cash (net of cash acquired). The acquired company provides coding compliance software
and data for health care organizations.
Purchased identifiable intangible assets for these acquisitions are being amortized on a straight-line basis over lives
ranging from two to 20 years (weighted-average life of 11 years). Research and development charges from these
acquisitions totaled $1 million. Pro forma information related to these acquisitions is not included because the impact of
these acquisitions, either individually or in the aggregate, RQWKH&RPSDQ\¶VFRQVROLGDWHGUHsults of operations is not
considered to be material.
In September 2004, 3M and Corning Incorporated reached a seWWOHPHQWUHODWHGWRLVVXHVDVVRFLDWHGZLWK0¶V
acquisition of Corning Precision Lens Inc. (now called Precision Optics Inc.). In September 2004, 3M received
$30 million from Corning related to this settlement.
The purchase price allocations and the resulting impact on the Consolidated Balance Sheet relating to all 2004
acquisitions follow:
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2004 ACTIVITY Hornell
Holding AB Precision
Asset (Liability) HighJump and Optics Inc. Total
(Millions) Software Inc. Subsidiaries Info-X Inc. (2004 activity
)
Activity
$FFRXQWVUHFHLYDEOH    ±  
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Other current assets 1 ± ±
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Purchased intangible assets 18 21 5 (17) 27
Purchased goodwill 52 72 17 (13) 128
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Accounts payable and other
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,QWHUHVWEHDULQJGHEW ±  ± ± 
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