3M 2015 Annual Report Download - page 117

TableofContents
3MbusinesssegmentreportingmeasuresincludedualcredittobusinesssegmentsforcertainU.S.salesandrelatedoperating
income.Managementevaluateseachofitsfivebusinesssegmentsbasedonnetsalesandoperatingincomeperformance,including
dualcreditU.S.reportingtofurtherincentivizeU.S.salesgrowth.Asaresult,3Mprovidesadditional(“dual”)credittothose
businesssegmentssellingproductsintheU.S.toanexternalcustomerwhenthatsegmentisnottheprimaryselleroftheproduct.For
example,certainrespiratorsareprimarilysoldbythePersonalSafetyDivisionwithintheSafetyandGraphicsbusinesssegment;
however,theIndustrialbusinesssegmentalsosellsthisproducttocertaincustomersinitsU.S.markets.Inthisexample,thenon-
primarysellingsegment(Industrial)wouldalsoreceivecreditfortheassociatednetsalesitinitiatedandtherelatedapproximate
operatingincome.Theassignedoperatingincomerelatedtodualcreditactivitymaydifferfromoperatingincomethatwouldresult
fromactualcostsassociatedwithsuchsales.Theoffsettothedualcreditbusinesssegmentreportingisreflectedasareconcilingitem
entitled“EliminationofDualCredit,”suchthatsalesandoperatingincomefortheU.S.intotalareunchanged.

NOTE17.GeographicAreas

GeographicareainformationisusedbytheCompanyasasecondaryperformancemeasuretomanageitsbusinesses.Exportsales
andcertainincomeandexpenseitemsaregenerallyreportedwithinthegeographicareawherethefinalsalesto3Mcustomersare
made.


                   Property,Plantand 
NetSales OperatingIncome Equipment-net 
(Millions)  2015  2014  2013  2015  2014  2013  2015  2014 
UnitedStates  $ 12,049  $ 11,714  $ 11,151  $ 2,647  $ 2,540  $ 2,210  $ 4,838  $ 4,619 
AsiaPacific   9,041   9,418   9,047   2,580   2,487   2,386   1,647   1,798 
Europe,MiddleEastandAfrica   6,228   7,198   7,085   1,017   1,234   1,168   1,531   1,502 
LatinAmericaandCanada   2,982   3,504   3,611   706   867   908   499   570 
OtherUnallocated   (26)  (13)  (23)  (4)  7   (6)  —   — 
TotalCompany  $ 30,274  $ 31,821  $ 30,871  $ 6,946  $ 7,135  $ 6,666  $ 8,515  $ 8,489 


AsiaPacificincludedChina/HongKongnetsalestocustomersof$2.945billionin2015,whichapproached10percentof
consolidatedworldwidesales.China/HongKongnetproperty,plantandequipment(PP&E)was$584millionatDecember31,
2015.

NOTE18.QuarterlyData(Unaudited)


(Millions,exceptper-shareamounts)  First  Second  Third  Fourth  Year 
2015 Quarter Quarter Quarter Quarter 2015 
Netsales $ 7,578 $ 7,686 $ 7,712 $ 7,298 $ 30,274 
Costofsales  3,821  3,858  3,877  3,827  15,383 
Netincomeincludingnoncontrollinginterest  1,201  1,303  1,298  1,039  4,841 
Netincomeattributableto3M  1,199  1,300  1,296  1,038  4,833 
Earningspershareattributableto3Mcommonshareholders-basic  1.88  2.06  2.09  1.69  7.72 
Earningspershareattributableto3Mcommonshareholders-diluted  1.85  2.02  2.05  1.66  7.58 



(Millions,exceptper-shareamounts)  First  Second  Third  Fourth  Year 
2014 Quarter Quarter Quarter Quarter 2014 
Netsales $ 7,831 $ 8,134 $ 8,137 $ 7,719 $ 31,821 
Costofsales  4,031  4,184  4,205  4,027  16,447 
Netincomeincludingnoncontrollinginterest  1,225  1,283  1,311  1,179  4,998 
Netincomeattributableto3M  1,207  1,267  1,303  1,179  4,956 
Earningspershareattributableto3Mcommonshareholders-basic  1.83  1.94  2.02  1.85  7.63 
Earningspershareattributableto3Mcommonshareholders-diluted  1.79  1.91  1.98  1.81  7.49 

Grossprofitiscalculatedasnetsalesminuscostofsales.

RefertoNote4fordiscussionof“RestructuringActions”,whichreduceddilutedearningspershareby$0.14inthefourthquarter
of2015.

117
