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Goodwill and Intangible Assets | 9 Months Ended
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Sep. 30, 2019
Goodwill and Intangible Assets |
Goodwill and Intangible Assets | NOTE 4. Goodwill and Intangible Assets ​ Goodwill from acquisitions totaled $508 million during the first nine months of 2019. 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, 2018 and September 30, 2019, follow: ​ Goodwill ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Millions) | ​ | Safety and Industrial | ​ | Transportation and Electronics | ​ | Health Care | ​ | Consumer | ​ | Total Company | ​
Balance as of December 31, 2018 | ​ | ​ | 4,716 | ​ | ​ | 1,857 | ​ | ​ | 3,248 | ​ | ​ | 230 | ​ | ​ | 10,051 | ​
Acquisition activity | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 508 | ​ | ​ | — | ​ | ​ | 508 | ​
Divestiture activity | ​ | ​ | (49) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (49) | ​
Translation and other | ​ | ​ | (51) | ​ | ​ | (27) | ​ | ​ | (53) | ​ | ​ | 31 | ​ | ​ | (100) | ​
Balance as of September 30, 2019 | ​ | $ | 4,616 | ​ | $ | 1,830 | ​ | $ | 3,703 | ​ | $ | 261 | ​ | $ | 10,410 | ​
​ 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 17, effective in the second quarter of 2019, the Company realigned its former five business segments into four to enable the Company to better serve global customers and markets. In addition, effective in the first quarter of 2019, the Company changed its business segment reporting in its continuing effort to improve the alignment of its businesses around markets and customers. For any product 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. During the first and second quarters of 2019, the Company completed its assessment of any potential goodwill impairment for reporting units impacted by this new structure and determined that no impairment existed. ​ 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 September 30, 2019, and December 31, 2018, follow: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, |  | December 31, |
(Millions) |  | 2019 |  | 2018 |
Customer related intangible assets | ​ | $ | 2,525 | ​ | $ | 2,291 | ​
Patents | ​ |  | 536 | ​ |  | 542 | ​
Other technology-based intangible assets | ​ |  | 727 | ​ |  | 576 | ​
Definite-lived tradenames | ​ |  | 673 | ​ |  | 664 | ​
Other amortizable intangible assets | ​ |  | 122 | ​ |  | 125 | ​
Total gross carrying amount | ​ | $ | 4,583 | ​ | $ | 4,198 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Accumulated amortization — customer related | ​ |  | (1,107) | ​ |  | (998) | ​
Accumulated amortization — patents | ​ |  | (493) | ​ |  | (487) | ​
Accumulated amortization — other technology-based | ​ |  | (382) | ​ |  | (333) | ​
Accumulated amortization — definite-lived tradenames | ​ |  | (300) | ​ |  | (276) | ​
Accumulated amortization — other | ​ |  | (89) | ​ |  | (88) | ​
Total accumulated amortization | ​ | $ | (2,371) | ​ | $ | (2,182) | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total finite-lived intangible assets — net | ​ | $ | 2,212 | ​ | $ | 2,016 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Non-amortizable intangible assets (primarily tradenames) | ​ |  | 635 | ​ |  | 641 | ​
Total intangible assets — net | ​ | $ | 2,847 | ​ | $ | 2,657 | ​
​ Certain tradenames acquired by 3M are not amortized because they have been in existence for over 55 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 and nine months ended September 30, 2019 and 2018 follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Three months ended |  | Nine months ended | ​
​ | ​ | September 30, | ​ | September 30, | ​
(Millions) |  | 2019 |  | 2018 |  | 2019 | ​ | 2018 |
Amortization expense | ​ | $ | 69 | ​ | $ | 61 | ​ | $ | 208 | ​ | $ | 188 | ​
​ Expected amortization expense for acquired amortizable intangible assets recorded as of September 30, 2019: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Remainder of | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | After |
(Millions) | ​ | 2019 | ​ | 2020 | ​ | 2021 | ​ | 2022 | ​ | 2023 | ​ | 2024 | ​ | 2024 |
Amortization expense | ​ | $ | 69 | ​ | $ | 264 | ​ | $ | 256 | ​ | $ | 242 | ​ | $ | 213 | ​ | $ | 183 | ​ | $ | 950 | ​
​ 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. The table above excludes the impact of the carrying value of finite-lived intangible assets associated with disposal groups classified as held-for-sale at September 30, 2019. See Note 3 for additional details. 3M expenses the costs incurred to renew or extend the term of intangible assets.

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