3M 2015 Annual Report Download - page 21

TableofContents
RESULTSOFOPERATIONS
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Net Sales:
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2015 2014 
 U.S.  Intl.  Worldwide  U.S.  Intl.  Worldwide 
Netsales(millions)  $ 12,049 $ 18,225 $ 30,274  $ 11,714  $ 20,107  $ 31,821 
%ofworldwidesales   39.8 %  60.2 %    36.8 %  63.2 %  
Componentsofnetsaleschange:             
Volume—organic   1.7 %  (0.5)%  0.2 %  4.4 %  3.8 %  3.9 %
Price  0.4  1.4  1.1   0.5   1.2   1.0 
Organiclocal-currencysales  2.1  0.9  1.3   4.9   5.0   4.9 
Acquisitions   1.2  0.5  0.8   0.2   —   0.1 
Divestitures   (0.4) (0.1) (0.2)  (0.1)  —   — 
Translation   —  (10.7) (6.8)  —   (3.0)  (1.9)
Totalsaleschange   2.9 %  (9.4)%  (4.9)%  5.0 %  2.0 %  3.1 %
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In2015,organiclocal-currencysalesgrew1.3percent,withincreasesof2.1percentintheUnitedStates,1.5percentinLatin
America/Canada,0.9percentinAsiaPacific,and0.8percentinEMEA.Organiclocal-currencysalesgrowthwas1.6percentacross
developingmarkets,and1.2percentindevelopedmarkets.Worldwideorganiclocal-currencysalesgrew3.7percentinHealthCare,
3.4percentinConsumer,2.4percentinSafetyandGraphics,and0.7percentinIndustrial,whilesalesdeclined1.9percentin
ElectronicsandEnergy.Acquisitionsadded0.8percenttoworldwidegrowth,whiledivestituresreducedworldwidegrowthby0.2
percent.Foreigncurrencytranslationreducedworldwidesalesgrowthby6.8percent.
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Worldwidesellingpricesrose1.1percentin2015.Sellingpricescontinuetobesupportedbytechnologyinnovation,whichisakey
fundamentalstrengthoftheCompany,helpingtodriveuniquecustomersolutionsandanincreasingflowofnewproducts.
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In2014,organiclocal-currencysalesgrew4.9percent,withincreasesof6.3percentinAsiaPacific,4.9percentintheUnitedStates,
4.5percentinLatinAmerica/Canada,and3.2percentinEMEA.Organiclocal-currencysalesgrew5.6percentacrossdeveloping
markets,and4.5percentindevelopedmarkets.Worldwideorganiclocal-currencysalesgrew5.8percentinHealthCare,5.4percent
inSafetyandGraphics,5.2percentinElectronicsandEnergy,4.9percentinIndustrial,and3.9percentinConsumer.Acquisitions
added0.1percenttoworldwidegrowthandforeigncurrencytranslationreducedworldwidesalesgrowthby1.9percent.
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Refertothesectionsentitled“PerformancebyBusinessSegment”and“PerformancebyGeographicArea”laterinMD&Afor
additionaldiscussionofsaleschange.
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Operating Expenses:
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    2015versus  2014versus 
(Percentofnetsales) 2015 2014 2013 2014 2013 
Costofsales  50.9 % 51.7 % 52.1 % (0.8)% (0.4)%
Selling,generalandadministrativeexpenses  20.4  20.3  20.7  0.1  (0.4)
Research,developmentandrelatedexpenses  5.8  5.6  5.6  0.2  — 
Operatingincome  22.9 % 22.4 % 21.6 % 0.5 % 0.8 %
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Pensionandpostretirementexpenseincreased$165millionin2015comparedto2014,comparedtoadecreaseof$162millionin
2014comparedto2013.Year2015includestheimpactofafirst-quarter2015Japanpensioncurtailmentgainof$17million.
Pensionandpostretirementexpenseisrecordedincostofsales;selling,generalandadministrativeexpenses(SG&A);andresearch,
developmentandrelatedexpenses(R&D).RefertoNote11(PensionandPostretirementPlans)forcomponentsofnetperiodic
benefitcostandtheassumptionsusedtodeterminenetcost.
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