Acquisitions

6 Months Ended

Jun. 30, 2012

Acquisitions

Acquisitions

NOTE 2. Acquisitions

3M makes acquisitions of certain businesses from time to time that the Company feels align with its strategic intent with respect to, among other factors, growth markets and adjacent product lines or technologies.Goodwill resulting from business combinations is largely attributable to the existing workforce of the acquired businesses and synergies expected to arise after 3M's acquisition of these businesses. 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.

During the six months ended June 30, 2012, the purchase price paid for business combinations (net of cash acquired)aggregated to $144 million.Adjustments in the first half of 2012 to the preliminary purchase price allocations of other acquisitions within the allocation period were not material and related to the 2011 acquisitions of Wintherthur Technologie AG and the business acquired from GPI Group. The allocation of purchase price related to the business purchased from GPI Group in October 2011 is considered preliminary, largely with respect to tax-related assets and liabilities. Refer to Note 2 in 3M's 2011 Annual Report on Form 10-K for more information on 3M's2011 acquisitions.

In April 2012, 3M (Health Care Business) purchased all of the outstanding shares of CodeRyte, Inc.,an industry leader in clinical natural processing technology and computer-assisted coding solutions for healthcare outpatient providers, which is headquartered in Bethesda, Maryland.

Purchased identifiable finite-lived intangible assets related to the acquisition which closed in the first six months of 2012 totaled $60 million and will be amortized on a straight-line basis over a weighted-average life of 14 years (lives ranging from 2 to 15 years). Acquired in-process research and development and identifiable intangible assets for which significant assumed renewals or extensions of underlying arrangements impacted the determination of their useful lives were not material. 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.

The following two transactions are expected to be completed in the secondhalf of 2012, subject to customary closing conditions including any necessary regulatory approvals:

In December 2011, 3M (Consumer and Office Business) entered into a definitive agreement to acquire the Office and Consumer Products business of Avery Dennison Corp. for a total purchase price of approximately $550 million, subject to post-closing adjustments. The Office and Consumer Products business of Avery Dennison, which is headquartered in Brea, California, is a leading supplier of office and education products, including labels, binders, presentation products, filing and indexing products, writing instruments, and other office and home organization products.

In June 2012, 3M (Display and Graphics Business) entered into an agreement to acquire the business of Federal Signal Technologies Group from Federal Signal Corp., for a total purchase price of approximately $110 million, subject to post-closing adjustments. This business focuses on electronic toll collection and parking management hardware and software services, with primary facilities in Arizona, California, Illinois, Michigan, Missouri, North Carolina, Tennessee, Texas, Hong Kong, Dubai and the U.K.