3M 2005 Annual Report Download - page 100

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Business Segment Depr. Capital
Information Net Operating and Expendi-
(Millions) Sales Income
A
ssets Amort. tures
Health Care 2005 $ 4,373 $ 1,215 $ 2,497 $ 176 $ 176
2004 4,230 1,123 2,636 179 165
2003 3,995 1,027 2,544 169 144
Industrial 2005 3,806 735 3,841 177 161
2004 3,444 610 2,395 181 154
2003 3,070 425 2,339 185 139
Display and Graphics 2005 3,558 1,159 2,804 188 237
2004 3,416 1,133 2,647 178 261
2003 2,970 886 2,570 159 126
Consumer and Office 2005 2,986 576 1,515 94 84
2004 2,861 542 1,468 104 106
2003 2,607 460 1,378 108 86
Electro and Communications 2005 2,333 463 1,799 145 102
2004 2,224 342 1,857 163 95
2003 2,101 288 1,884 165 65
Safety, Security and 2005 2,292 553 1,351 113 99
Protection Services 2004 2,125 491 1,317 101 99
2003 1,928 437 1,139 100 46
Transportation 2005 1,772 461 959 64 69
2004 1,674 426 887 63 56
2003 1,531 388 872 68 64
Corporate and 2005 47 (153) 5,747 29 15
Unallocated 2004 37 (89) 7,501 30 1
2003 30 (198) 4,874 10 7
Total Company 2005 $21,167 $ 5,009 $20,513 $ 986 $ 943
2004 20,011 4,578 20,708 999 937
2003 18,232 3,713 17,600 964 677
Segment assets for the operating business segments (excluding Corporate and Unallocated) primarily include
accounts receivable; inventory; property, plant and equipment – net; goodwill and intangible assets; and other
miscellaneous assets. Assets included in Corporate and Unallocated principally are cash and cash equivalents;
insurance receivables; deferred income taxes; certain investments and other assets, including prepaid pension
assets; and certain unallocated property, plant and equipment. Corporate and unallocated assets decreased
approximately $1.8 billion in 2005, primarily due to decreases in cash and cash equivalents. Corporate and
Unallocated assets increased approximately $2.6 billion in 2004, primarily due to increases in prepaid pension assets
($2.0 billion) and increases in cash and cash equivalents ($0.9 billion), with partial offsets in other asset accounts. For
management reporting purposes, corporate goodwill (which at December 31, 2005, totaled approximately
$320 million), is not allocated to the seven operating business segments. In Note 3 to the Consolidated Financial
Statements, corporate goodwill has been allocated to the respective market segments as required by SFAS No. 142
for impairment testing.
Corporate and Unallocated operating income principally includes corporate investment gains and losses, certain
derivative gains and losses, insurance-related gains and losses, certain litigation expenses, corporate restructuring
program charges and other miscellaneous items. Because this category includes a variety of miscellaneous items, it
is subject to fluctuation on a quarterly and annual basis. In 2005, Corporate and Unallocated was impacted by a pre-
tax charge of approximately $30 million in connection with settlement agreements of one pending LePage’s follow-on
class actions and of two individual follow-on actions, all involving direct purchasers of transparent tape. In 2003,
Corporate and Unallocated includes a pre-tax charge of $93 million related to an adverse ruling associated with a
lawsuit filed against 3M in 1997 by LePage’s Inc.