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TableofContents
Operating Income:
3Musesoperatingincomeasoneofitsprimarybusinesssegmentperformancemeasurementtools.Refertothetablebelowfora
reconciliationofoperatingincomemarginsfor2015versus2014,and2014versus2013.
Operating income margin:
 Yearended
December31,
(Percentofnetsales)  2015 2014 
Sameperiodlastyear 22.4 % 21.6 %
Increase/(decrease)inoperatingincomemargin,dueto:  
Sellingpriceandrawmaterialimpacts 1.6 1.0 
Organicvolumegrowth — 0.3 
Pensionandpostretirementbenefitcosts (0.5) 0.5 
Acquisitionsanddivestitures (0.2) (0.1)
Strategicinvestments (0.3) (0.6)
Foreignexchangeimpacts —  (0.3)
Restructuringcharges (0.4) — 
Productivityandother 0.3 — 
Currentperiod 22.9 % 22.4 %
Operatingincomemarginswere22.9percentin2015comparedto22.4percentin2014,anincreaseof0.5percentagepoints.These
resultsincludedasignificantbenefitfromthecombinationofhighersellingpricesandlowerrawmaterialcosts,andabenefitfrom
productivityandotheritems.Thesebenefitswerepartiallyoffsetbyhigherpensionandpostretirementbenefitcosts,2015
restructuringcharges,higherstrategicinvestments,andacquisitionanddivestitureimpacts.Strategicinvestmentsincludein
crementalprogramsarounddisruptiveR&Dandbusinesstransformation.Acquisitionanddivestitureimpactsprimarilyrelatetothe
CapitalSafetyandPolyporeSeparationsMediaacquisitions,andthedivestituresofsubstantiallyallofthelibrarysystemsbusiness,
alongwiththelicenseplateconvertingbusinessinFrance.
Operatingincomemarginswere22.4percentin2014comparedto21.6percentin2013,anincreaseof0.8percentagepoints.These
resultsincludedasignificantbenefitfromthecombinationofhighersellingpricesandlowerrawmaterialcosts.Inaddition,lower
year-on-yearpensionandpostretirementbenefitcostsandprofitleverageonorganicvolumegrowthprovidedbenefits.Itemsthat
reducedoperatingincomemarginsincludedstrategicinvestments,whichincludedinvestmentsindisruptiveR&D,business
transformation,thesupplychaincenterofexpertiseinEurope,andportfoliomanagementactions.TheCompanyinvested$90
millionin2014inportfoliomanagementactionstoposition3Mforgreatersuccess.Foreigncurrencyeffectsandacquisitionimpacts
(Treo)reducedoperatingincomemargins.
Interest Expense and Income:
    
     
(Millions)  2015  2014  2013
Interestexpense $ 149 $ 142  $ 145 
Interestincome  (26)  (33)  (41)
Total $ 123 $ 109  $ 104 
InterestExpense:Interestexpenseincreasedslightlyin2015comparedto2014,despitesignificantlyhigherdebtlevels,helpedby
loweraverageinterestrates.Interestexpensedecreasedin2014comparedto2013,againdespitehigherdebtlevels,primarilydueto
lowerU.S.borrowingcostsasdebtmaturitieswerereplacedwithlowercostfinancingfromcommercialpaperandlowerinterest
ratesonnewdebtissuances.
Capitalizedinterestrelatedtoproperty,plantandequipmentconstructioninprogressisrecordedasareductiontointerestexpense.
Theamountsshowninthetableaboveforinterestexpensearenetofcapitalizedinterestamountsof$13million,$15million,and
$21million,in2015,2014and2013,respectively.
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