6.Acquisitions

During 2018, Corning acquired substantially all of CMD in two cash transactions totaling $841 million. On June 1, 2018, Corning acquired a manufacturing facility and certain other assets (collectively referred to as “Purchased Assets”) for $801 million. The Purchased Assets constitute a business, which designs, manufactures and markets high bandwidth and optical fiber products. On December 3, 2018, as part of the acquisition of CMD, Corning acquired 100% of the German services company for $40 million. The acquisition was accounted for as a business combination.

A summary of the preliminary allocation of the total purchase price to the net tangible and other intangible assets acquired, with the remainder recorded as goodwill based on fair value is as follows (in millions):



Property, plant and equipment	$	32
Other intangible assets		525
Other net assets		16
Total identified net assets		573
Purchase consideration		841
Goodwill (1) (2)	$	268

(1)

Amounts reflect measurement period adjustments.

(2)

The goodwill recognized is deductible for U.S. income tax purposes. The goodwill was allocated to the Optical Communications segment.

Goodwill is related to the value of CMD’s product and customer portfolio and its combination with Corning’s existing optical communications platform, as well as synergies and other intangibles that do not qualify for separate recognition. Other intangible assets consist primarily of $434 million of customer relationships and $91 million of other intangibles that are amortized over the weighted average useful life of approximately 14 and 11 years, respectively. Acquisition-related costs of $18 million for the year ended December 31, 2018, included costs for legal, accounting, valuation and other professional services and were included in selling, general and administrative expense in the Consolidated Statements of Income. Supplemental pro forma information was not provided because the Purchased Assets are not material to Corning’s consolidated financial statements.

There were no material acquisitions completed in 2017 or 2016. See Note 8 (Goodwill and Other Intangible Assets) to the Consolidated Financial Statements for further information on goodwill and intangibles acquired in 2017 and 2016.