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TableofContents
Sales and operating income by business segment:
ThefollowingtablecontainssalesandoperatingincomeresultsbybusinesssegmentfortheyearsendedDecember31,2015and
2014.Inadditiontothediscussionbelow,refertothesectionentitled“PerformancebyBusinessSegment”and“Performanceby
GeographicArea”laterinMD&AforamoredetaileddiscussionofthesalesandincomeresultsoftheCompanyanditsrespective
businesssegments(includingCorporateandUnallocated).RefertoNote16foradditionalinformationonbusinesssegments,
includingEliminationofDualCredit.
    2015vs2014
2015 2014 %change
 Net  %of  Oper.  Net  %of  Oper.  Net  Oper.
(Dollarsinmillions) Sales Total Income Sales Total Income Sales Income
BusinessSegments           
Industrial $ 10,328  34.1 % $ 2,263 $ 10,990  34.5 % $ 2,389  (6.0)% (5.3)%
SafetyandGraphics 5,515 18.2 %  1,305 5,732  18.0 % 1,296  (3.8)% 0.7 %
HealthCare 5,420 17.9 %  1,724 5,572  17.5 % 1,724  (2.7)% — %
ElectronicsandEnergy 5,220 17.2 %  1,102 5,604  17.6 % 1,115  (6.8)% (1.1)%
Consumer 4,422 14.6 %  1,046 4,523  14.2 % 995  (2.2)% 5.2 %
CorporateandUnallocated 1 — %  (355) 4  — % (251) —  — 
EliminationofDualCredit (632) (2.0)%  (139) (604) (1.8)%  (133) — —
TotalCompany $ 30,274  100.0 % $ 6,946 $ 31,821  100.0 % $ 7,135  (4.9)% (2.6)%
Salesin2015decreased4.9percent,substantiallyimpactedbyforeigncurrencytranslation,whichreducedsalesby6.8percent.
SalesinU.S.dollarsdeclinedinConsumerby2.2percent,HealthCareby2.7percent,SafetyandGraphicsby3.8percent,
Industrialby6.0percent,andElectronicsandEnergyby6.8percent.Totalcompanyorganiclocal-currencysalesgrowth(which
includesorganicvolumeandsellingpriceimpacts)was1.3percent,acquisitionsadded0.8percent,divestituresreducedsalesby0.2
percent,andforeigncurrencytranslationreducedsalesby6.8percent.Allof3M’sfivebusinesssegmentspostedoperatingincome
marginsofapproximately21percentormorein2015.Worldwideoperatingincomemarginsfor2015were22.9percent,compared
to22.4percentfor2014.
Salesin2014increased3.1percent,ledbyHealthCareat4.5percent,ElectronicsandEnergyat3.9percent,Industrialat3.1
percent,SafetyandGraphicsat2.7percent,andConsumerat2.0percent.Totalcompanyorganiclocal-currencysalesgrowth
(whichincludesorganicvolumeandsellingpriceimpacts)was4.9percent,acquisitionsadded0.1percent,andforeigncurrency
translationreducedsalesby1.9percent.Allof3M’sfivebusinesssegmentspostedoperatingincomemarginsofapproximately20
percentormorein2014.Worldwideoperatingincomemarginsfor2014were22.4percent,comparedto21.6percentfor2013.
Financial condition:
3Mgenerated$6.4billionofoperatingcashflowin2015,adecreaseof$206millionwhencomparedto2014.Thisfollowedan
increaseof$809millionwhencomparing2014to2013.Refertothesectionentitled“FinancialConditionandLiquidity”laterin
MD&Aforadiscussionofitemsimpactingcashflows.InFebruary2016,3M’sBoardofDirectorsauthorizedtherepurchaseofup
to$10billionof3M’soutstandingcommonstock,whichreplacedtheCompany’sFebruary2014repurchaseprogram.Thisnew
programhasnopre-establishedenddate.In2015,2014,and2013,theCompanypurchasedmorethan$5billionofitsownstock
eachyear.TheCompanyexpectstopurchase$4billionto$6billionofitsownstockin2016.InFebruary2016,3M’sBoardof
Directorsdeclaredafirst-quarter2016dividendof$1.11pershare,anincreaseof8percent.Thismarkedthe58thconsecutive
yearofdividendincreasesfor3M.3M’sdebttototalcapitalratio(totalcapitaldefinedasdebtplusequity)was48percentat
December31,2015,34percentatDecember31,2014,and25percentatDecember31,2013.TheCompanyhasanAA-credit
rating,withastableoutlook,fromStandard&Poor’sandanAa3creditrating,withanegativeoutlook,fromMoody’sInvestors
Service.TheCompanyhassignificantcashonhandandsufficientadditionalaccesstocapitalmarketstomeetitsfundingneeds.
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