3M 2015 Annual Report Download - page 64

TableofContents
measuretheinvestmentatcostlessimpairmentplusorminusobservablepricechanges(inorderlytransactions).TheASUalso
establishesanincrementalrecognitionanddisclosurerequirementrelatedtothepresentationoffairvaluechangesoffinancial
liabilitiesforwhichthefairvalueoption(FVO)hasbeenelected.Underthisguidance,anentitywouldberequiredtoseparately
presentinOCItheportionofthetotalfairvaluechangeattributabletoinstrument-specificcreditriskasopposedtoreflectingthe
entireamountinearnings.ForderivativeliabilitiesforwhichtheFVOhasbeenelected,however,anychangesinfairvalue
attributabletoinstrument-specificcreditriskwouldcontinuetobepresentedinnetincome,whichisconsistentwithcurrent
guidance.For3M,thisstandardiseffectivebeginningJanuary1,2018viaacumulative-effectadjustmenttobeginningretained
earnings,exceptforguidancerelativetoequitysecuritieswithoutreadilydeterminablefairvalueswhichisappliedprospectively.
TheCompanyiscurrentlyassessingthisASU’simpactson3M’sconsolidatedresultsofoperationsandfinancialcondition.

NOTE2.AcquisitionsandDivestitures

Acquisitions:

3Mmakesacquisitionsofcertainbusinessesfromtimetotimethatarealignedwithitsstrategicintentwithrespectto,amongother
factors,growthmarketsandadjacentproductlinesortechnologies.

Theimpactontheconsolidatedbalancesheetofthepurchasepriceallocationsrelatedto2015acquisitionsandassignedweighted-
averageintangibleassetlives,includingadjustmentsrelativetootheracquisitionswithinthemeasurementperiod,follows.The
allocationofpurchaseconsiderationrelatedtotheAugust2015CapitalSafetyandPolyporeSeparationsMediaacquisitionsis
consideredpreliminary,primarilywithrespecttocertaintax-relatedassetsandliabilities.3Mexpectstofinalizetheallocationof
purchasepricewithintheoneyearmeasurement-periodfollowingtheseacquisitions.Adjustmentstopreliminaryallocations
primarilyrelatedtotheidentificationandvaluationofcertainindefinite-livedintangibleassets(furtherdiscussedbelow).Thechange
toprovisionalamountsresultedinanimmaterialimpacttoresultsofoperationsinthefourthquarterof2015,aportionofwhich
relatestoearlierquartersinthemeasurementperiod.

2015AcquisitionActivity 
             Finite-Lived 
             Intangible-Asset
(Millions)  Capital  Polypore   
Weighted-
Average 
Asset(Liability) Safety SeparationsMedia Other Total Lives(Years) 
Accountsreceivable $ 66 $ 30 $ 7 $ 103   
Inventory  63  35  4  102   
Othercurrentassets  10  1  1  12   
Property,plant,andequipment  36  128  7  171   
Purchasedfinite-livedintangibleassets:           
Customerrelatedintangibleassets  445  270  40  755 16 
Patents   44   11   7  62 7
Othertechnology-basedintangibleassets   85   42   1  128 7
Definite-livedtradenames   26   6  1  33 16 
Otheramortizableintangibleassets   —   —   2  24
Purchasedindefinite-livedintangibleassets  520  —  —  520   
Purchasedgoodwill  1,764  636  95  2,495   
Accountspayableandotherliabilities,netofotherassets  (105) (122) (5) (232)  
Interestbearingdebt  (766) —  —  (766)  
Deferredtaxasset/(liability)  (464) —  (7) (471)  
          
Netassetsacquired $ 1,724 $ 1,037 $ 153 $ 2,914   
          
Supplementalinformation:           
Cashpaid $ 1,758 $ 1,037 $ 154 $ 2,949   
Less:Cashacquired  34  —  1  35   
Cashpaid,netofcashacquired $ 1,724 $ 1,037 $ 153 $ 2,914   

64
