XML 32 R14.htm IDEA: XBRL DOCUMENT v3.24.0.1
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
NOTE 4. Goodwill and Intangible Assets
Goodwill:
The change in the carrying amount of goodwill by business segment was as follows:
(Millions)Safety and IndustrialTransportation and ElectronicsHealth CareConsumerTotal Company
Balance as of December 31, 2021$4,622$1,825$6,786$253$13,486
Divestiture activity——(16)—(16)
Goodwill impairment
—(271)——(271)
Translation and other(113)(53)(255)12(409)
Balance as of December 31, 2022$4,509$1,501$6,515$265$12,790
Divestiture activity— — (4)— (4)
Translation and other33 11 92 5 141 
Balance as of December 31, 2023$4,542$1,512$6,603$270$12,927
The amounts in the “Translation and other” row in the above table primarily relate to changes in foreign currency exchange rates.
As of December 31, 2023, the Company's accumulated goodwill impairment loss is $0.3 billion.
The Company completed its annual goodwill impairment test in the fourth quarter of 2023 for all reporting units and determined that no impairment existed. As described in Note 21, effective in the first quarter of 2023, the Company changed its business segment reporting.
In December 2022, as a result of 3M's commitment to a plan to exit per- and polyfluoroalkyl substance (PFAS) manufacturing as described in Note 17, 3M recorded a goodwill impairment charge of $0.3 billion related to the Advanced Materials reporting unit (within the Transportation and Electronics business) resulting in no remaining goodwill for that reporting unit.
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:
December 31,
(Millions)20232022
Customer related (original lives largely 11 to 19 years)
$4,073 $4,062 
Patents (original lives largely 9 to 13 years)
420 426 
Other technology-based (original lives largely 6 to 20 years)
2,077 2,081 
Definite-lived tradenames (original lives largely 6 to 20 years)
1,166 1,166 
Other (original lives largely 10 years)
78 84 
Total gross carrying amount
7,814 7,819 
Accumulated amortization — customer related(1,966)(1,747)
Accumulated amortization — patents (419)(421)
Accumulated amortization — other technology-based(1,178)(1,000)
Accumulated amortization — definite-lived tradenames(575)(509)
Accumulated amortization — other (57)(60)
Total accumulated amortization (4,195)(3,737)
Total finite-lived intangible assets — net 3,619 4,082 
Indefinite lived intangible assets (primarily tradenames)
607 617 
Total intangible assets — net$4,226 $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.
As discussed in Note 17, in December 2022, as a result of 3M's commitment to a plan to exit per- and polyfluoroalkyl substance (PFAS) manufacturing, 3M recorded a charge in the fourth quarter of 2022 related to impairment of long-lived assets and an immaterial charge related to impairment of indefinite-lived assets.
Amortization expense follows:
Year ended December 31,
(Millions)202320222021
Amortization expense $482 $498 $529 
Expected amortization expense for acquired amortizable intangible assets recorded as of December 31, 2023 follows:
(Millions)20242025202620272028
After 2028
Amortization expense$453 $423 $418 $394 $367 $1,564 
3M expenses the costs incurred to renew or extend the term of intangible assets.