3M 2015 Annual Report Download - page 25
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Please find page 25 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
Corporate and Unallocated:
Inadditiontothesefivebusinesssegments,3Massignscertaincoststo“CorporateandUnallocated,”whichispresentedseparately
intheprecedingbusinesssegmentstableandinNote16.CorporateandUnallocatedincludesavarietyofmiscellaneousitems,such
ascorporateinvestmentgainsandlosses,certainderivativegainsandlosses,certaininsurance-relatedgainsandlosses,certain
litigationandenvironmentalexpenses,corporaterestructuringchargesandcertainunder-orover-absorbedcosts(e.g.pension,stock-
basedcompensation)thattheCompanydeterminesnottoallocatedirectlytoitsbusinesssegments.Becausethiscategoryincludesa
varietyofmiscellaneousitems,itissubjecttofluctuationonaquarterlyandannualbasis.
CorporateandUnallocatedoperatingexpensesincreasedby$104millionin2015whencomparedto2014.Thisincreasewasdriven
byhigherpensionandpostretirementbenefitexpenses,whichincreasedintotalby$165million.Ofthisincrease,$153millionwas
allocatedtoCorporateandUnallocated.Increaseswerealsodrivenbyfourthquarter2015restructuringchargesof$37million,as
indicatedinthebelowtable.ItemswhichpartiallyoffsettheseincreaseswithinCorporateandUnallocatedincludedhigher
administrativeandR&Dcostabsorptionbythefivebusinesssegments,resultinginlessunder-absorbedexpensebeingallocatedto
Corporate.
CorporateandUnallocatedoperatingexpensesdecreasedby$70millionin2014whencomparedto2013.Thisdecreasewasdriven
bylowerpensionandpostretirementbenefitexpenses,whichdeclinedyear-on-yearby$162million.Ofthisreduction,$116million
wasallocatedtoCorporateandUnallocated.ThiswaspartiallyoffsetbyhigherCorporateandUnallocatedexpensesrelatedtoyear-
on-yearincreasesinannualincentiveplanexpensesandlegalaccruals.
Restructuring Pre-Tax Charge by Business Segment:
(Millions) 2015
Industrial 42
SafetyandGraphics 11
HealthCare 9
ElectronicsandEnergy 12
Consumer 3
CorporateandUnallocated 37
Total $ 114
Operating Business Segments:
Eachof3M’sbusinesssegmentsincurredrestructuringchargesinthefourthquarterof2015,asindicatedintheprecedingtable.In
2014,eachbusinesssegmentabsorbedadditionalcostrelatedtoincrementalinvestmentsrelatedtobusinesstransformation,enabled
by3M’sglobalERPimplementation,whichimpactedeachofthefivebusinesssegments2014annualoperatingincomemarginsby
approximately0.2percentagepointswhencomparedto2013.
Informationrelatedto3M’sbusinesssegmentsispresentedinthetablesthatfollow.Organiclocal-currencysalesincludeboth
organicvolumeimpactsplussellingpriceimpacts.Acquisitionimpacts,ifany,aremeasuredseparatelyforthefirsttwelvemonthsof
theacquisition.Thedivestitureimpacts,ifany,foreigncurrencytranslationimpactsandtotalsaleschangearealsoprovidedforeach
businesssegment.AnyreferencestoEMEArelatetoEurope,MiddleEastandAfricaonacombinedbasis.
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