Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible AssetsGoodwillThere was no goodwill recorded from acquisitions during the first three months of 2023. 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 follows:

(Millions)	Safety and Industrial		Transportation and Electronics		Health Care		Consumer		Total Company
Balance as of December 31, 2022	$	4,509	$	1,501	$	6,515	$	265	$	12,790
Translation and other	10		6		40		9		65
Balance as of March 31, 2023	$	4,519	$	1,507	$	6,555	$	274	$	12,855

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. As described in Note 15, effective in the first quarter of 2023, 3M changed its measure of segment operating performance and the composition of reportable segments and realigned divisions within the Consumer business segment. For any changes that resulted in reporting unit changes, the Company applied the relative fair value method to determine the impact on goodwill of the associated reporting units. The impacts of these changes on reported amounts were immaterial and resulted in no impairment. As of March 31, 2023, the Company's accumulated goodwill impairment loss is $0.3 billion.

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 follow:

(Millions)	March 31, 2023		December 31, 2022
Customer related intangible assets	$	4,075	$	4,062
Patents	429		426
Other technology-based intangible assets	2,086		2,081
Definite-lived tradenames	1,166		1,166
Other amortizable intangible assets	83		84
Total gross carrying amount	7,839		7,819
Accumulated amortization — customer related	(1,812)		(1,747)
Accumulated amortization — patents	(425)		(421)
Accumulated amortization — other technology-based	(1,050)		(1,000)
Accumulated amortization — definite-lived tradenames	(525)		(509)
Accumulated amortization — other	(59)		(60)
Total accumulated amortization	(3,871)		(3,737)
Total finite-lived intangible assets — net	3,968		4,082
Non-amortizable intangible assets (primarily tradenames)	617		617
Total intangible assets — net	$	4,585	$	4,699

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 follows:

	Three months ended March 31,
(Millions)	2023		2022
Amortization expense	$	122	$	131

Expected amortization expense for acquired amortizable intangible assets recorded as of March 31, 2023 follows:

(Millions)	Remainder of 2023		2024		2025		2026		2027		2028		After 2028
Amortization expense	$	356	$	452	$	422	$	416	$	397	$	378	$	1,547

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.