3M 2009 Annual Report Download - page 67

61
NOTE 2. Acquisitions and Divestitures
Acquisitions:
The impact on the consolidated balance sheet of the purchase price allocations related to acquisitions, including
adjustments relative to other acquisitions within the allocation period, follows:
2008 Acquisitions
(Millions)
Asset (Liability) 2009 Total
Aearo
Holding
Corp.
Other
Acquisitions 2008 Total 2007 Total
Accounts receivable ...................................
$31
$76 $70 $ 146 $69
Inventory.....................................................
10 81 89 170 79
Other current assets...................................
—
7 8 15 5
Property, plant, and equipment — net .......
15 78 83 161 68
Purchased intangible assets ......................
93 417 377 794 131
Purchased goodwill ....................................
(25) 798 594 1,392 326
Accounts payable and other liabilities, net
of other assets ........................................
(21) (200) (104) (304) (80)
Interest bearing debt ..................................
(18) (684) (125) (809) (34)
Deferred tax asset/(liability)........................
(16) (50) (121) (171) (12)
Net assets acquired....................................
$69
$ 523 $ 871 $ 1,394 $ 552
Supplemental information:
Cash paid ...................................................
$73
$ 562 $ 897 $ 1,459 $ 546
Less: Cash acquired...................................
4
39 26 65 7
Cash paid, net of cash acquired.................
$69
$ 523 $ 871 $ 1,394 $ 539
Non-cash (3M shares at fair value) ............
—
— — — 13
Net assets acquired....................................
$69
$ 523 $ 871 $ 1,394 $ 552
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. In-process research and development associated with these
business combinations were not material.
In addition to business combinations, 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.
2009 acquisitions:
During 2009, 3M completed four business combinations. The purchase price paid for these business combinations
(net of cash acquired) and certain acquisition costs and contingent consideration paid for pre-2009 business
combinations during 2009 aggregated to $69 million.
(1) In January 2009, 3M (Safety, Security and Protection Services Business) purchased 100 percent of the
outstanding shares of Alltech Solutions, a provider of water pipe rehabilitation services based in Moncton, New
Brunswick, Canada.
(2) In February 2009, 3M (Industrial and Transportation Business) purchased the assets of Compac Corp.’s pressure
sensitive adhesive tape business, a global leader in providing custom solutions in coating, laminating and converting
flexible substrates headquartered in Hackettstown, N.J.
(3) In April 2009, 3M (Industrial and Transportation Business) purchased 100 percent of the outstanding shares of
Meguiar’s International, UK, a distributor of Meguiar’s Inc. products based in Daventry, United Kingdom.
(4) In July 2009, 3M (Consumer and Office Business) purchased the ACE® branded (and related brands) elastic
bandage, supports and thermometer product lines, which are sold broadly through consumer channels in North
America.
Purchased identifiable intangible assets related to the four acquisitions that closed in 2009 totaled $28 million. This
included $20 million of identifiable intangible assets that will be amortized on a straight-line basis over a weighted-