3M 2015 Annual Report Download - page 115

TableofContents
ThefollowingtablesummarizesperformanceshareactivityfortheyearsendedDecember31:
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
2015 2014 2013 
   Weighted    Weighted    Weighted 
   Average    Average    Average 
Numberof GrantDate Numberof GrantDate Numberof GrantDate 
Awards FairValue Awards FairValue Awards FairValue 
Undistributedbalance—          
AsofJanuary1  1,099,752 $ 102.65  895,635  $ 88.12  1,089,084  $ 79.27 
Granted  227,798  158.88  305,225   124.89  353,734   96.87 
Distributed  (323,938) 83.08  (277,358)  84.74  (507,083)  75.16 
Performancechange  (106,760) 127.70  212,461   109.74  (6,949)  77.01 
Forfeited  (25,660) 125.33  (36,212)  109.44  (33,151)  91.34 
AsofDecember31  871,192 $ 120.89  1,099,752  $ 102.65  895,635  $ 88.12 
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AsofDecember31,2015,therewas$17millionofcompensationexpensethathasyettoberecognizedrelatedtoperformance
shares.Thisexpenseisexpectedtoberecognizedovertheremainingweighted-averageearningsperiodof10months.Duringthe
yearsendedDecember31,2015,2014and2013,thetotalfairvalueofperformancesharesthatweredistributedwere$54million,
$35millionand$52million,respectively.TheCompany’sactualtaxbenefitsrealizedforthetaxdeductionsrelatedtothe
distributionofperformancesharesfortheyearsendedDecember31,2015,2014and2013was$15million,$11millionand$16
million,respectively.
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General Employees’ Stock Purchase Plan (GESPP):
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AsofDecember31,2015,shareholdershaveapproved60millionsharesforissuanceundertheCompany’sGESPP.Substantiallyall
employeesareeligibletoparticipateintheplan.Participantsaregrantedoptionsat85%ofmarketvalueatthedateofgrant.There
arenoGESPPsharesunderoptionatthebeginningorendofeachyearbecauseoptionsaregrantedonthefirstbusinessdayand
exercisedonthelastbusinessdayofthesamemonth.
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GeneralEmployees’StockPurchasePlan
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2015 2014 2013 
   Weighted    Weighted    Weighted 
   Average Average    Average 
Shares ExercisePrice Shares ExercisePrice Shares ExercisePrice 
          
Optionsgranted  1,007,669 $ 133.52  1,073,956  $ 118.73  1,259,247  $ 93.46 
Optionsexercised  (1,007,669) 133.52  (1,073,956)  118.73  (1,259,247)  93.46 
Sharesavailableforgrant-
December31  28,104,335    29,112,004    30,185,960   
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Theweighted-averagefairvalueperoptiongrantedduring2015,2014and2013was$23.56,$20.95and$16.49,respectively.The
fairvalueofGESPPoptionswasbasedonthe15%purchasepricediscount.TheCompanyrecognizedcompensationexpensefor
GESSPoptionsof$24millionin2015,$22millionin2014and$21millionin2013.
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NOTE16.BusinessSegments
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3M’sbusinessesareorganized,managedandinternallygroupedintosegmentsbasedondifferencesinmarkets,products,
technologiesandservices.3Mmanagesitsoperationsinfivebusinesssegments:Industrial;SafetyandGraphics;HealthCare;
ElectronicsandEnergy;andConsumer.3M’sfivebusinesssegmentsbringtogethercommonorrelated3Mtechnologies,enhancing
thedevelopmentofinnovativeproductsandservicesandprovidingforefficientsharingofbusinessresources.Transactionsamong
reportablesegmentsarerecordedatcost.3Misanintegratedenterprisecharacterizedbysubstantialintersegmentcooperation,cost
allocationsandinventorytransfers.Therefore,managementdoesnotrepresentthatthesesegments,ifoperatedindependently,would
reporttheoperatingincomeinformationshown.Thedifferencebetweenoperatingincomeandpre-taxincomerelatestointerest
incomeandinterestexpense,whicharenotallocatedtobusinesssegments.
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