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39
Cash Flows from Investing Activities:
Years en
ded December 31
(Millions)
2014
2013
2012
Purchases of property, plant and equipment (PP&E)
$
(1,493)
$
(1,665) $
(1,484)
Proceeds from sale of PP&E and other assets
135
128 41
Acquisitions, net of cash acquired
(94)
―
(1,046)
Purchases and proceeds from maturities and sale of
marketable securities and investments, net
754
627
(211)
Proceeds from sale of businesses
―
8
―
Other investing activities
102
46
14
Net cash used in investing activities
$
(596)
$
(856)
$
(2,686)
Investments in property, plant and equipment enable growth across many diverse markets, helping to meet product
demand and increasing manufacturing efficiency. Capital spending was $1.493 billion in 2014, compared to $1.665 billion
in 2013 and $1.484 billion in 2012. The Company expects 2015 capital spending to be approximately $1.5 billion to $1.7
billion as 3M continues to invest in its businesses.
3M invests in renewable and maintenance programs, which pertains to cost reduction, cycle time, maintaining and
renewing current capacity, eliminating pollution, and compliance. Costs related to maintenance, ordinary repairs, and
certain other items are expensed. 3M also invests in growth, which adds to capacity, driven by new products, both through
expansion of current facilities and new facilities, plus research facilities. Finally, 3M also invests in other initiatives, such
as information technology (IT) and corporate laboratory facilities.
In 2014, investments in growth across geographies included production equipment, new sites and buildings, capacity
investments, converting, and distribution, and other growth initiatives. Other investments include IT systems and
infrastructure, including an ongoing multi-year phased implementation of an ERP system on a worldwide basis, In
addition, 3M began a multi-year program in the United States to renew and upgrade laboratory facilities and administrative
buildings.
In 2013, 3M continued its expansion of manufacturing capacity in key growth markets, including investments in the U.S.,
China, Germany, and Brazil. This included significant investments across 3M’s many businesses, such as abrasives,
industrial adhesives and tapes, advanced materials, electronics-related, infection prevention, and other businesses. 3M
continued its investments in IT systems and infrastructure. In addition, 3M sustained existing facilities through general
maintenance, cost reduction, and compliance efforts.
In 2012, 3M expanded manufacturing capacity in key growth markets, particularly with respect to international and
developing countries. This included investments in China, Turkey and Poland, in addition to investments in Singapore and
the U.S. 3M also increased investments in IT systems and infrastructure and made strategic investments in
research/development infrastructure and manufacturing sites to lay the foundation for future growth.
Proceeds from sale of PP&E and other assets totaled $135 million in 2014, $128 million in 2013, and $41 million in 2012.
Apart from the normal periodic sales of PP&E, 2014 included proceeds of $114 million related to the sales of real estate
and non-production equipment, and 2013 included proceeds of $79 million related to non-production equipment.
Refer to Note 2 for information on acquisitions and divestitures. The Company is actively considering additional
acquisitions, investments and strategic alliances, and from time to time may also divest certain businesses.
Purchases of marketable securities and investments and proceeds from maturities and sale of marketable securities and
investments are primarily attributable to asset-backed securities, agency securities, corporate medium-term note
securities and other securities, which are classified as available-for-sale. Refer to Note 8 for more details about 3M’s
diversified marketable securities portfolio. Purchases of investments include additional survivor benefit insurance, plus
cost method and equity investments.