3M 2015 Annual Report Download - page 34

TableofContents
GeographicAreaSupplementalInformation
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                Property,Plantand 
                Equipment-net 
EmployeesasofDecember31, CapitalSpending asofDecember31, 
(Millions,exceptEmployees)  2015  2014  2013  2015  2014  2013  2015  2014 
              
UnitedStates  35,973  35,581  34,719  $ 936  $ 909  $ 941  $ 4,838  $ 4,619 
AsiaPacific  17,642  17,854  18,417   172   184   284   1,647   1,798 
Europe,MiddleEastandAfrica  20,563  20,506  20,504   249   288   290   1,531   1,502 
LatinAmericaandCanada  15,268  15,859  15,027   104   112   150   499   570 
TotalCompany  89,446  89,800  88,667  $ 1,461  $ 1,493  $ 1,665  $ 8,515  $ 8,489 
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Employment:
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Employmentdecreasedby354positionsin2015andincreasedby1,133positionsin2014.Theprimaryfactorthatdecreased
employmentin2015relatedtofourth-quarter2015restructuringactionsthatimpactedapproximately1,700positionsworldwide.The
2015acquisitionsofIveraMedicalCorp.,PolyporeInternationalInc.’sSeparationsMediabusinessandCapitalSafetyGroup
S.A.R.L.increased2015headcountbyapproximately2,000positions.Theprimaryfactorsthatincreasedemploymentin2014was
additionsindevelopingeconomiestosupportgrowth,plusadditionsrelatedtotheTreoSolutionsLLCacquisitionin2014.
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Capital Spending/Net Property, Plant and Equipment:
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Investmentsinproperty,plantandequipmentenablegrowthacrossmanydiversemarkets,helpingtomeetproductdemandand
increasingmanufacturingefficiency.3M’scapitalspendingbygeographyhasbeenledbytheUnitedStates(64%ofspendingin
2015),followedbyEurope,MiddleEastandAfrica,AsiaPacific,andLatinAmerica/Canada.3Miscontinuingtoincreaseits
manufacturingandsourcingcapability,particularlyindevelopingeconomies,inordertomorecloselyalignitsproductcapability
withitssalesinmajorgeographicareas.3Mwillcontinuetomakeinvestmentsincriticaldevelopingmarkets,suchasBrazil,China,
Mexico,Panama,Poland,SoutheastAsia,andTurkey.CapitalspendingisdiscussedinmoredetaillaterinMD&Ainthesection
entitled“CashFlowsfromInvestingActivities.”
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CRITICALACCOUNTINGESTIMATES
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InformationregardingsignificantaccountingpoliciesisincludedinNote1.AsstatedinNote1,thepreparationoffinancial
statementsrequiresmanagementtomakeestimatesandassumptionsthataffectthereportedamountsofassets,liabilities,revenue
andexpenses,andrelateddisclosureofcontingentassetsandliabilities.Managementbasesitsestimatesonhistoricalexperienceand
onvariousassumptionsthatarebelievedtobereasonableunderthecircumstances,theresultsofwhichformthebasisformaking
judgmentsaboutthecarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Actualresultsmay
differfromtheseestimates.
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TheCompanybelievesitsmostcriticalaccountingestimatesrelatetolegalproceedings,theCompany’spensionandpostretirement
obligations,assetimpairmentsandincometaxes.Seniormanagementhasdiscussedthedevelopment,selectionanddisclosureofits
criticalaccountingestimateswiththeAuditCommitteeof3M’sBoardofDirectors.
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Legal Proceedings:
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ThecategoriesofclaimsforwhichtheCompanyhasaprobableandestimableliability,theamountofitsliabilityaccruals,andthe
estimatesofitsrelatedinsurancereceivablesarecriticalaccountingestimatesrelatedtolegalproceedings.Pleaserefertothesection
entitled“ProcessforDisclosureandRecordingofLiabilitiesandInsuranceReceivablesRelatedtoLegalProceedings”(containedin
“LegalProceedings”inNote14)foradditionalinformationaboutsuchestimates.
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