EXHIBIT 99

 

Supplemental Unaudited Business Segment Information

Based on Segment Structure Effective in the First Quarter of 2013

 

This Current Report on Form 8-K includes supplemental unaudited historical business segment net sales and operating income information to reflect the business segment realignments effective in the first quarter of 2013 (provided on both an annual and quarterly basis for the years ended December 31, 2012, 2011 and 2010). The Company did not operate under the realigned business segment structure for any of these prior periods and will begin to report comparative results under the new structure effective with the filing of its Quarterly Report on Form 10-Q for the quarter ending March 31, 2013.

 

Effective in the first quarter of 2013, 3M completed a realignment of its business groups (segments) to better serve global markets and customers. This realignment included:

·                  The alignment of divisions into five business groups (segments) as further described below.

·                  The combination of certain existing divisions into new divisions. These included the Traffic Safety and Security Division (reflecting the combination of the former Traffic Safety Systems Division and Security Systems Division) and the Optical Systems Division (reflecting the combination of the former Optical Systems Division and Mobile Interactive Solutions Division).

·                  The movement of certain product lines between various divisions.

 

In addition to the above, there were also adjustments for dual credit reporting to reflect the realigned structure. The new structure is comprised of five business segments:  Industrial, Safety and Graphics, Electronics and Energy, Health Care, and Consumer.

 

Industrial:  This business segment, previously referred to as Industrial and Transportation, is largely unchanged, except for the transfer of the Renewable Energy Division to the Electronics and Energy business segment.

Safety and Graphics: This business segment includes Architectural Markets, Building and Commercial Services, Commercial Graphics, Industrial Mineral Products, Personal Safety, and Traffic Safety and Security. This new business segment also reflects the movement of certain product lines between various divisions.

Electronics and Energy: This business segment includes Communication Markets, Electrical Markets, Electronics Markets Materials, Electronic Solutions, Infrastructure Protection, Optical Systems, Renewable Energy, and 3M Touch Systems.  This new business segment also reflects the movement of certain product lines between various divisions.

Health Care: This business segment is largely unchanged, except for the movement of certain product lines between various divisions.

Consumer: This business segment, previously referred to as Consumer and Office, is largely unchanged, except for the movement of certain product lines between various divisions.

 

3M’s businesses are organized, managed and internally grouped into segments based on differences in products, technologies and services. Effective in the first quarter of 2013, 3M now manages its operations in five operating business segments as described above. 3M’s five business segments bring together common or related 3M technologies, enhancing the development of innovative products and services and providing for efficient sharing of business resources. These segments have worldwide responsibility for virtually all 3M product lines. 3M is not dependent on any single product or market. Transactions among reportable segments are recorded at cost. 3M is an integrated enterprise characterized by substantial intersegment cooperation, cost allocations and inventory transfers. Therefore, management does not represent that these segments, if operated independently, would report the operating income information shown.

 

Corporate and Unallocated operating income 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 program charges and certain under- or over-absorbed costs (e.g. pension, stock-based compensation) that the Company may choose 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.

 

3M business segment reporting measures include dual credit to business segments for certain U.S. sales and related operating income. Management evaluates each of its five operating business segments based on net sales and operating income performance, including dual credit U.S. reporting to further incentivize U.S. sales growth. As a result, 3M provides additional (“dual”) credit to those business segments selling products in the U.S. to an external customer when that segment is not the primary seller of the product. For example, certain respirators are primarily sold by the Personal Safety Division within the Safety and Graphics business segment; however, the Industrial business segment also sells this product to certain customers in its U.S. markets. In this example, the non-primary selling segment (Industrial) would also receive credit for the associated net sales it initiated and the related approximate operating income. The assigned operating income related to dual credit activity may differ from operating

 


 

income that would result from actual costs associated with such sales. The offset to the dual credit business segment reporting is reflected as a reconciling item entitled “Elimination of Dual Credit,” such that sales and operating income for the U.S. in total are unchanged.

 

Supplemental Unaudited Business Segment Information

Based on Segment Structure Effective in the First Quarter of 2013

Net Sales

 

NET SALES

 

First

 

Second

 

Third

 

Fourth

 

Total

 

(Millions)

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Year

 

Industrial

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

2,558

 

$

2,499

 

$

2,462

 

$

2,424

 

$

9,943

 

2011

 

2,344

 

2,514

 

2,448

 

2,323

 

9,629

 

2010

 

1,974

 

2,041

 

2,076

 

2,025

 

8,116

 

 

 

 

 

 

 

 

 

 

 

 

 

Safety and Graphics

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

1,387

 

$

1,421

 

$

1,357

 

$

1,306

 

$

5,471

 

2011

 

1,332

 

1,445

 

1,383

 

1,298

 

5,458

 

2010

 

1,169

 

1,246

 

1,235

 

1,223

 

4,873

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronics and Energy

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

1,320

 

$

1,384

 

$

1,414

 

$

1,340

 

$

5,458

 

2011

 

1,470

 

1,511

 

1,461

 

1,290

 

5,732

 

2010

 

1,260

 

1,465

 

1,525

 

1,382

 

5,632

 

 

 

 

 

 

 

 

 

 

 

 

 

Health Care

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

1,275

 

$

1,277

 

$

1,259

 

$

1,327

 

$

5,138

 

2011

 

1,250

 

1,264

 

1,241

 

1,256

 

5,011

 

2010

 

1,108

 

1,105

 

1,087

 

1,192

 

4,492

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

1,060

 

$

1,083

 

$

1,129

 

$

1,114

 

$

4,386

 

2011

 

1,018

 

1,062

 

1,116

 

1,034

 

4,230

 

2010

 

928

 

977

 

1,047

 

974

 

3,926

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Unallocated

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

2

 

$

1

 

$

1

 

$

—

 

$

4

 

2011

 

4

 

3

 

1

 

1

 

9

 

2010

 

4

 

3

 

3

 

1

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination of Dual Credit

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

(116

)

$

(131

)

$

(125

)

$

(124

)

$

(496

)

2011

 

(107

)

(119

)

(119

)

(113

)

(458

)

2010

 

(95

)

(106

)

(99

)

(88

)

(388

)

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

7,486

 

$

7,534

 

$

7,497

 

$

7,387

 

$

29,904

 

2011

 

7,311

 

7,680

 

7,531

 

7,089

 

29,611

 

2010

 

6,348

 

6,731

 

6,874

 

6,709

 

26,662

 

 

 

 


 

Supplemental Unaudited Business Segment Information

Based on Segment Structure Effective in the First Quarter of 2013

Operating Income

 

OPERATING INCOME 

 

First

 

Second

 

Third

 

Fourth

 

Total

 

(Millions)

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Year

 

Industrial

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

591

 

$

592

 

$

568

 

$

485

 

$

2,236

 

2011

 

495

 

522

 

497

 

469

 

1,983

 

2010

 

436

 

453

 

420

 

411

 

1,720

 

 

 

 

 

 

 

 

 

 

 

 

 

Safety and Graphics

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

334

 

$

368

 

$

295

 

$

220

 

$

1,217

 

2011

 

312

 

356

 

316

 

253

 

1,237

 

2010

 

278

 

319

 

286

 

255

 

1,138

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronics and Energy

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

234

 

$

282

 

$

291

 

$

219

 

$

1,026

 

2011

 

313

 

326

 

271

 

230

 

1,140

 

2010

 

268

 

368

 

354

 

217

 

1,207

 

 

 

 

 

 

 

 

 

 

 

 

 

Health Care

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

401

 

$

412

 

$

399

 

$

429

 

$

1,641

 

2011

 

367

 

364

 

366

 

387

 

1,484

 

2010

 

344

 

342

 

325

 

346

 

1,357

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

237

 

$

227

 

$

246

 

$

233

 

$

943

 

2011

 

219

 

207

 

247

 

182

 

855

 

2010

 

222

 

219

 

239

 

179

 

859

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Unallocated

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

(138

)

$

(124

)

$

(93

)

$

(116

)

$

(471

)

2011

 

(104

)

(94

)

(90

)

(132

)

(420

)

2010

 

(82

)

(82

)

(26

)

(88

)

(278

)

 

 

 

 

 

 

 

 

 

 

 

 

Elimination of Dual Credit

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

(25

)

$

(29

)

$

(28

)

$

(27

)

$

(109

)

2011

 

(24

)

(26

)

(26

)

(25

)

(101

)

2010

 

(21

)

(23

)

(22

)

(19

)

(85

)

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

1,634

 

$

1,728

 

$

1,678

 

$

1,443

 

$

6,483

 

2011

 

1,578

 

1,655

 

1,581

 

1,364

 

6,178

 

2010

 

1,445

 

1,596

 

1,576

 

1,301

 

5,918

 

 

 


 

Supplemental Unaudited Geographic Area Information

Based on Geographic Area Structure Effective in the First Quarter of 2013

 

Geographic area information is used by the Company as a secondary performance measure to manage its businesses. Export sales and certain income and expense items are generally reported within the geographic area where the final sales to 3M customers are made. During the first quarter of 2013, 3M realigned its geographic area reporting to include Puerto Rico in the United States, rather than in the Latin America/Canada region. This Current Report on Form 8-K includes supplemental unaudited historical geographic area sales and operating income information to reflect this realignment on an annual basis for the years ended December 31, 2012, 2011 and 2010. The Company did not operate under the realigned geographic area structure for any of these prior periods and will begin to report comparative results under the new structure with the filing of its Quarterly Report on Form 10-Q for the quarter ending March 31, 2013. The impact of the preceding changes on previously reported geographic area net sales and operating income is summarized as follows:

 

 

 

NET SALES

 

OPERATING INCOME

 

Year ended Dec. 31, 2012

 

Previously

 

 

 

 

 

Previously

 

 

 

 

 

(Millions)

 

Reported

 

Revised

 

Change

 

Reported

 

Revised

 

Change

 

United States

 

$

10,528

 

$

10,571

 

$

43

 

$

1,929

 

$

1,938

 

$

9

 

Asia Pacific

 

9,092

 

9,092

 

—

 

2,450

 

2,450

 

—

 

Europe, Middle East and Africa

 

6,730

 

6,730

 

—

 

1,163

 

1,163

 

—

 

Latin America and Canada

 

3,572

 

3,529

 

(43

)

945

 

936

 

(9

)

Other Unallocated

 

(18

)

(18

)

—

 

(4

)

(4

)

—

 

Total Company

 

$

29,904

 

$

29,904

 

$

—

 

$

6,483

 

$

6,483

 

$

—

 

 

 

 

NET SALES

 

OPERATING INCOME

 

Year ended Dec. 31, 2011

 

Previously

 

 

 

 

 

Previously

 

 

 

 

 

(Millions)

 

Reported

 

Revised

 

Change

 

Reported

 

Revised

 

Change

 

United States

 

$

10,028

 

$

10,071

 

$

43

 

$

1,629

 

$

1,639

 

$

10

 

Asia Pacific

 

9,108

 

9,108

 

—

 

2,523

 

2,523

 

—

 

Europe, Middle East and Africa

 

7,076

 

7,076

 

—

 

1,150

 

1,150

 

—

 

Latin America and Canada

 

3,411

 

3,368

 

(43

)

896

 

886

 

(10

)

Other Unallocated

 

(12

)

(12

)

—

 

(20

)

(20

)

—

 

Total Company

 

$

29,611

 

$

29,611

 

$

—

 

$

6,178

 

$

6,178

 

$

—

 

 

 

 

NET SALES

 

OPERATING INCOME

 

Year ended Dec. 31, 2010

 

Previously

 

 

 

 

 

Previously

 

 

 

 

 

(Millions)

 

Reported

 

Revised

 

Change

 

Reported

 

Revised

 

Change

 

United States

 

$

9,210

 

$

9,254

 

$

44

 

$

1,636

 

$

1,647

 

$

11

 

Asia Pacific

 

8,259

 

8,259

 

—

 

2,400

 

2,400

 

—

 

Europe, Middle East and Africa

 

6,259

 

6,259

 

—

 

1,112

 

1,112

 

—

 

Latin America and Canada

 

2,950

 

2,906

 

(44

)

797

 

787

 

(10

)

Other Unallocated

 

(16

)

(16

)

—

 

(27

)

(28

)

(1

)

Total Company

 

$

26,662

 

$

26,662

 

$

—

 

$

5,918

 

$

5,918

 

$

—