3M 2015 Annual Report Download - page 16
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Please find page 16 of the 2015 3M annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.TableofContents
Item7.Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations.
Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations(MD&A)isdesignedtoprovideareader
of3M’sfinancialstatementswithanarrativefromtheperspectiveofmanagement.3M’sMD&Aispresentedineightsections:
·Overview
·ResultsofOperations
·PerformancebyBusinessSegment
·PerformancebyGeographicArea
·CriticalAccountingEstimates
·NewAccountingPronouncements
·FinancialConditionandLiquidity
·FinancialInstruments
Forward-lookingstatementsinItem7mayinvolverisksanduncertaintiesthatcouldcauseresultstodiffermateriallyfromthose
projected(refertothesectionentitled“CautionaryNoteConcerningFactorsThatMayAffectFutureResults”inItem1andtherisk
factorsprovidedinItem1Afordiscussionoftheserisksanduncertainties).
OVERVIEW
3Misadiversifiedglobalmanufacturer,technologyinnovatorandmarketerofawidevarietyofproductsandservices.Asdescribed
inNote16,effectiveinthethirdquarterof2015,withintheHealthCarebusinesssegment,theCompanyformedtheOralCare
SolutionsDivision,whichcombinedtheformer3MESPEand3MUnitekdivisions.3Mmanagesitsoperationsinfiveoperating
businesssegments:Industrial;SafetyandGraphics;HealthCare;ElectronicsandEnergy;andConsumer.Fromageographic
perspective,anyreferencestoEMEArefertoEurope,MiddleEastandAfricaonacombinedbasis.
Restructuring actions:
Duringthefourthquarterof2015,managementapprovedandcommittedtoundertakecertainrestructuringactionsprimarilyfocused
onstructuraloverhead,largelyintheU.S.,andslower-growingmarkets,withparticularemphasisonEMEAandLatinAmerica.This
impactedapproximately1,700positionsworldwideandresultedinafourth-quarter2015pre-taxchargeof$114million,$88million
after-taxor$0.14perdilutedshare.
Earnings per share attributable to 3M common shareholders – diluted:
Thefollowingtableprovidestheincrease(decrease)indilutedearningspersharefor2015comparedto2014,and2014comparedto
2013.
Yearended
December31,
(Earningsperdilutedshare) 2015 2014
Sameperiodlastyear $ 7.49 $ 6.72
Increase/(decrease)inearningspershare-diluted,dueto:
Operationalbenefits 0.40 0.66
Restructuringcharges (0.14) —
Acquisitionsanddivestitures (0.02) —
Foreignexchangeimpacts (0.43) (0.15)
Incometaxrate — (0.08)
Sharesofcommonstockoutstanding 0.28 0.34
Currentperiod $ 7.58 $ 7.49
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