3M 2015 Annual Report Download - page 25

Download and view the complete annual report

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.

Page out of 158

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158

TableofContents
Corporate and Unallocated:
Inadditiontothesefivebusinesssegments,3Massignscertaincoststo“CorporateandUnallocated,”whichispresentedseparately
intheprecedingbusinesssegmentstableandinNote16.CorporateandUnallocatedincludesavarietyofmiscellaneousitems,such
ascorporateinvestmentgainsandlosses,certainderivativegainsandlosses,certaininsurance-relatedgainsandlosses,certain
litigationandenvironmentalexpenses,corporaterestructuringchargesandcertainunder-orover-absorbedcosts(e.g.pension,stock-
basedcompensation)thattheCompanydeterminesnottoallocatedirectlytoitsbusinesssegments.Becausethiscategoryincludesa
varietyofmiscellaneousitems,itissubjecttofluctuationonaquarterlyandannualbasis.
CorporateandUnallocatedoperatingexpensesincreasedby$104millionin2015whencomparedto2014.Thisincreasewasdriven
byhigherpensionandpostretirementbenefitexpenses,whichincreasedintotalby$165million.Ofthisincrease,$153millionwas
allocatedtoCorporateandUnallocated.Increaseswerealsodrivenbyfourthquarter2015restructuringchargesof$37million,as
indicatedinthebelowtable.ItemswhichpartiallyoffsettheseincreaseswithinCorporateandUnallocatedincludedhigher
administrativeandR&Dcostabsorptionbythefivebusinesssegments,resultinginlessunder-absorbedexpensebeingallocatedto
Corporate.
CorporateandUnallocatedoperatingexpensesdecreasedby$70millionin2014whencomparedto2013.Thisdecreasewasdriven
bylowerpensionandpostretirementbenefitexpenses,whichdeclinedyear-on-yearby$162million.Ofthisreduction,$116million
wasallocatedtoCorporateandUnallocated.ThiswaspartiallyoffsetbyhigherCorporateandUnallocatedexpensesrelatedtoyear-
on-yearincreasesinannualincentiveplanexpensesandlegalaccruals.
Restructuring Pre-Tax Charge by Business Segment:
 
(Millions)  2015 
Industrial 42 
SafetyandGraphics 11 
HealthCare 9 
ElectronicsandEnergy 12 
Consumer 3 
CorporateandUnallocated 37 
Total $ 114 
Operating Business Segments:
Eachof3M’sbusinesssegmentsincurredrestructuringchargesinthefourthquarterof2015,asindicatedintheprecedingtable.In
2014,eachbusinesssegmentabsorbedadditionalcostrelatedtoincrementalinvestmentsrelatedtobusinesstransformation,enabled
by3M’sglobalERPimplementation,whichimpactedeachofthefivebusinesssegments2014annualoperatingincomemarginsby
approximately0.2percentagepointswhencomparedto2013.
Informationrelatedto3M’sbusinesssegmentsispresentedinthetablesthatfollow.Organiclocal-currencysalesincludeboth
organicvolumeimpactsplussellingpriceimpacts.Acquisitionimpacts,ifany,aremeasuredseparatelyforthefirsttwelvemonthsof
theacquisition.Thedivestitureimpacts,ifany,foreigncurrencytranslationimpactsandtotalsaleschangearealsoprovidedforeach
businesssegment.AnyreferencestoEMEArelatetoEurope,MiddleEastandAfricaonacombinedbasis.
25