Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

There was no goodwill recorded from acquisitions during the first three months of 2022. The amounts in the “Translation and other” row in the following table primarily relate to changes in foreign currency exchange rates. The goodwill balance by business segment as of December 31, 2021 and March 31, 2022, follow:

Goodwill

(Millions)	Safety and Industrial		Transportation and Electronics		Health Care		Consumer		Total Company
Balance as of December 31, 2021	$	4,622	$	1,825	$	6,786	$	253	$	13,486
Translation and other	(17)		(12)		(85)		(4)		(118)
Balance as of March 31, 2022	$	4,605	$	1,813	$	6,701	$	249	$	13,368

Accounting standards require that goodwill be tested for impairment annually and between annual tests in certain circumstances such as a change in reporting units or the testing of recoverability of a significant asset group within a reporting unit. At 3M, reporting units correspond to a division. 3M will continue to monitor its reporting units and asset groups in 2022 for any triggering events or other indicators of impairment.

Acquired Intangible Assets

The carrying amount and accumulated amortization of acquired finite-lived intangible assets, in addition to the balance of non-amortizable intangible assets, as of March 31, 2022, and December 31, 2021, follow:

(Millions)	March 31, 2022		December 31, 2021
Customer related intangible assets	$	4,179	$	4,216
Patents	510		513
Other technology-based intangible assets	2,105		2,111
Definite-lived tradenames	1,170		1,171
Other amortizable intangible assets	94		105
Total gross carrying amount	8,058		8,116
Accumulated amortization — customer related	(1,653)		(1,616)
Accumulated amortization — patents	(500)		(500)
Accumulated amortization — other technology-based	(886)		(839)
Accumulated amortization — definite-lived tradenames	(462)		(447)
Accumulated amortization — other	(67)		(79)
Total accumulated amortization	(3,568)		(3,481)
Total finite-lived intangible assets — net	4,490		4,635
Non-amortizable intangible assets (primarily tradenames)	651		653
Total intangible assets — net	$	5,141	$	5,288

Certain tradenames acquired by 3M are not amortized because they have been in existence for over 60 years, have a history of leading-market share positions, have been and are intended to be continuously renewed, and the associated products of which are expected to generate cash flows for 3M for an indefinite period of time.

Amortization expense for the three months ended March 31, 2022 and 2021 follows:

	Three months ended March 31,
(Millions)	2022		2021
Amortization expense	$	131	$	133

Expected amortization expense for acquired amortizable intangible assets recorded as of March 31, 2022:

(Millions)	Remainder of 2022		2023		2024		2025		2026		2027		After 2027
Amortization expense	$	378	$	483	$	455	$	425	$	418	$	391	$	1,940

The preceding expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, changes in foreign currency exchange rates, impairment of intangible assets, accelerated amortization of intangible assets and other events. 3M expenses the costs incurred to renew or extend the term of intangible assets.