EXHIBIT 99

 

This Current Report on Form 8-K includes supplemental unaudited historical business segment net sales and operating income information in addition to net sales on a disaggregated basis that reflect the realignment of 3M’s business segments. The Company did not operate under this segment 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 June 30, 2019. Effective in the second quarter of 2019, in an effort to enable the Company to better serve global customers and markets, the Company made the following changes to its business segments:

 

Realignment of the Company’s business segments from five to four

 

The Company realigned its former five business segments into four: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer. Existing divisions were largely realigned to this new structure. In addition, certain retail auto care product lines formerly in the Automotive Aftermarket Division (now within the Safety and Industrial business segment) were moved to the Construction and Home Improvement Division (within the Consumer business segment). Also, product lines relating to the refrigeration filtration business, formerly included in the Separation and Purification Sciences Division (now within the Health Care business segment) were moved to Other Safety and Industrial (within the Safety and Industrial business segment). 3M business segment reporting measures include dual credit to business segments for certain sales and operating income. Dual credit, which is based on which business segment provides customer account activity with respect to a particular product sold in a specific country, was reduced as a result of the closer alignment between customer account activity and their respective markets. The four business segments are as follows:

Safety and Industrial:  This segment includes businesses that serve the global industrial, electrical and safety markets. This business segment consists of personal safety, adhesives and tapes, abrasives, closure and masking systems, electrical markets, automotive aftermarket, and roofing granules. This segment also includes the Communication Markets Division (which was substantially sold in 2018) and the refrigeration filtration product lines (within Other Safety and Industrial).

Transportation and Electronics: This segment includes businesses that serve global transportation and electronic original equipment manufacturer (OEM) customers. This business segment consists of electronics (display materials and systems, electronic materials solutions), automotive and aerospace, commercial solutions, advanced materials, and transportation safety.

Health Care: This business segment serves the global healthcare industry and includes medical solutions, oral care, separation and purification sciences, health information systems, drug delivery systems, and food safety.

Consumer: This business serves global consumers and consists of home improvement, stationery and office supplies, home care, and consumer health care. This segment also includes, within the Construction and Home Improvement Division, certain retail auto care product lines.

 

The financial information presented herein reflects the impact of the preceding changes for all periods presented.

 

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 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. Corporate and Unallocated also includes sales, costs, and income from contract manufacturing, transition services and other arrangements with the acquirer of the Communication Markets Division following its divestiture in 2018. 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 sales and related operating income. Management evaluates each of its four business segments based on net sales and operating income performance, including dual credit reporting to further incentivize sales growth. As a result, 3M reflects additional (“dual”) credit to another business segment when the customer account activity (“sales district”) with respect to the particular product sold to the external customer is provided by a different business segment. This additional dual credit is largely reflected at the division level. For example, certain respirators are primarily sold by the Personal Safety Division within the Safety and Industrial business segment; however, a sales district within the Consumer business segment provides the contact for sales of the product to particular customers. In this example, the non-primary selling segment (Consumer) would also receive credit for the associated net sales initiated through its sales district 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 in total are unchanged.

Supplemental Unaudited Business Segment Information

Based on Segment Structure Effective in the Second Quarter of 2019

Net Sales 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

First

 

Second

 

Third

 

Fourth

 

Total

 

(Millions)

    

Quarter

    

Quarter

    

Quarter

    

Quarter

    

Year

 

Safety and Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

2,986

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

3,268

 

$

3,253

 

$

3,021

 

$

2,952

 

$

12,494

 

2017

 

 

2,910

 

 

2,926

 

 

3,024

 

 

3,086

 

 

11,946

 

2016

 

 

2,825

 

 

2,887

 

 

2,835

 

 

2,669

 

 

11,216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation and Electronics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

2,357

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2,519

 

$

2,527

 

$

2,619

 

$

2,441

 

$

10,106

 

2017

 

 

2,431

 

 

2,418

 

 

2,602

 

 

2,410

 

 

9,861

 

2016

 

 

2,244

 

 

2,302

 

 

2,423

 

 

2,298

 

 

9,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Health Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

1,738

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

1,745

 

$

1,730

 

$

1,643

 

$

1,708

 

$

6,826

 

2017

 

 

1,630

 

 

1,642

 

 

1,687

 

 

1,676

 

 

6,635

 

2016

 

 

1,597

 

 

1,624

 

 

1,572

 

 

1,584

 

 

6,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

1,194

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

1,208

 

$

1,309

 

$

1,302

 

$

1,267

 

$

5,086

 

2017

 

 

1,148

 

 

1,245

 

 

1,347

 

 

1,266

 

 

5,006

 

2016

 

 

1,142

 

 

1,233

 

 

1,296

 

 

1,168

 

 

4,839

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Unallocated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

22

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 —

 

$

12

 

$

35

 

$

 3

 

$

50

 

2017

 

 

 2

 

 

 3

 

 

 —

 

 

(3)

 

 

 2

 

2016

 

 

 —

 

 

 4

 

 

 —

 

 

 2

 

 

 6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination of Dual Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

(434)

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

(462)

 

$

(441)

 

$

(468)

 

$

(426)

 

$

(1,797)

 

2017

 

 

(436)

 

 

(424)

 

 

(488)

 

 

(445)

 

 

(1,793)

 

2016

 

 

(399)

 

 

(388)

 

 

(417)

 

 

(392)

 

 

(1,596)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

7,863

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

8,278

 

$

8,390

 

$

8,152

 

$

7,945

 

$

32,765

 

2017

 

 

7,685

 

 

7,810

 

 

8,172

 

 

7,990

 

 

31,657

 

2016

 

 

7,409

 

 

7,662

 

 

7,709

 

 

7,329

 

 

30,109

 

 

Supplemental Unaudited Business Segment Information

Based on Segment Structure Effective in the Second Quarter of 2019

Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

First

 

Second

 

Third

 

Fourth

 

Total

 

(Millions)

    

Quarter

    

Quarter

    

Quarter

    

Quarter

    

Year

 

Safety and Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

644

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

771

 

$

1,285

 

$

697

 

$

670

 

$

3,423

 

2017

 

 

664

 

 

619

 

 

728

 

 

592

 

 

2,603

 

2016

 

 

643

 

 

717

 

 

653

 

 

578

 

 

2,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation and Electronics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

523

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

656

 

$

669

 

$

726

 

$

598

 

$

2,649

 

2017

 

 

569

 

 

1,040

 

 

695

 

 

682

 

 

2,986

 

2016

 

 

503

 

 

515

 

 

598

 

 

552

 

 

2,168

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Health Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

464

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

498

 

$

470

 

$

475

 

$

478

 

$

1,921

 

2017

 

 

463

 

 

433

 

 

500

 

 

481

 

 

1,877

 

2016

 

 

485

 

 

489

 

 

451

 

 

427

 

 

1,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

233

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

232

 

$

279

 

$

300

 

$

260

 

$

1,071

 

2017

 

 

237

 

 

214

 

 

323

 

 

277

 

 

1,051

 

2016

 

 

249

 

 

293

 

 

325

 

 

229

 

 

1,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Unallocated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

(625)

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

(1,036)

 

$

(200)

 

$

(57)

 

$

(116)

 

$

(1,409)

 

2017

 

 

(84)

 

 

(47)

 

 

(108)

 

 

(128)

 

 

(367)

 

2016

 

 

(43)

 

 

(104)

 

 

(66)

 

 

(72)

 

 

(285)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination of Dual Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

(103)

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

(114)

 

$

(102)

 

$

(125)

 

$

(107)

 

$

(448)

 

2017

 

 

(107)

 

 

(106)

 

 

(130)

 

 

(115)

 

 

(458)

 

2016

 

 

(98)

 

 

(93)

 

 

(106)

 

 

(98)

 

 

(395)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

$

1,136

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

1,007

 

$

2,401

 

$

2,016

 

$

1,783

 

$

7,207

 

2017

 

 

1,742

 

 

2,153

 

 

2,008

 

 

1,789

 

 

7,692

 

2016

 

 

1,739

 

 

1,817

 

 

1,855

 

 

1,616

 

 

7,027

 

 

Supplemental Unaudited Net Sales on a Disaggregated Basis

Based on Segment Structure Effective in the Second Quarter of 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Year ended 

 

 

 

March 31,

 

December 31,

 

Net Sales (Millions)

 

2019

    

2018

 

2018

   

2017

   

2016

 

Abrasives

 

$

369

 

$

409

 

$

1,533

 

$

1,498

 

$

1,416

 

Adhesives and Tapes

 

 

694

 

 

731

 

 

2,880

 

 

2,773

 

 

2,632

 

Automotive Aftermarket

 

 

310

 

 

349

 

 

1,374

 

 

1,388

 

 

1,346

 

Closure and Masking Systems

 

 

278

 

 

307

 

 

1,224

 

 

1,259

 

 

1,262

 

Communication Markets

 

 

 —

 

 

94

 

 

175

 

 

387

 

 

400

 

Electrical Markets

 

 

311

 

 

309

 

 

1,243

 

 

1,196

 

 

1,159

 

Personal Safety

 

 

926

 

 

945

 

 

3,606

 

 

2,960

 

 

2,553

 

Roofing Granules

 

 

92

 

 

101

 

 

353

 

 

372

 

 

344

 

Other Safety and Industrial

 

 

 6

 

 

23

 

 

106

 

 

113

 

 

104

 

Total Safety and Industrial Business Segment

 

$

2,986

 

$

3,268

 

$

12,494

 

$

11,946

 

$

11,216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Materials

 

$

311

 

$

303

 

$

1,236

 

$

1,123

 

$

1,037

 

Automotive and Aerospace

 

 

514

 

 

571

 

 

2,109

 

 

2,047

 

 

1,923

 

Commercial Solutions

 

 

455

 

 

481

 

 

1,829

 

 

1,743

 

 

1,737

 

Electronics

 

 

861

 

 

927

 

 

3,965

 

 

3,842

 

 

3,299

 

Transportation Safety

 

 

218

 

 

238

 

 

957

 

 

1,103

 

 

1,272

 

Other Transportation and Electronics

 

 

(2)

 

 

(1)

 

 

10

 

 

 3

 

 

(1)

 

Total Transportation and Electronics Business Segment

 

$

2,357

 

$

2,519

 

$

10,106

 

$

9,861

 

$

9,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Drug Delivery

 

$

92

 

$

119

 

$

444

 

$

486

 

$

451

 

Food Safety

 

 

83

 

 

81

 

 

328

 

 

303

 

 

278

 

Health Information Systems

 

 

260

 

 

205

 

 

837

 

 

791

 

 

780

 

Medical Solutions

 

 

764

 

 

773

 

 

3,036

 

 

2,934

 

 

2,813

 

Oral Care

 

 

341

 

 

354

 

 

1,353

 

 

1,322

 

 

1,277

 

Separation and Purification Sciences

 

 

203

 

 

214

 

 

822

 

 

797

 

 

783

 

Other Health Care

 

 

(5)

 

 

(1)

 

 

 6

 

 

 2

 

 

(5)

 

Total Health Care Business Segment

 

$

1,738

 

$

1,745

 

$

6,826

 

$

6,635

 

$

6,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Health Care

 

$

98

 

$

102

 

$

391

 

$

425

 

$

381

 

Home Care

 

 

257

 

 

269

 

 

1,012

 

 

1,028

 

 

1,006

 

Home Improvement

 

 

535

 

 

522

 

 

2,233

 

 

2,118

 

 

1,977

 

Stationery and Office

 

 

294

 

 

303

 

 

1,396

 

 

1,386

 

 

1,439

 

Other Consumer

 

 

10

 

 

12

 

 

54

 

 

49

 

 

36

 

Total Consumer Business Segment

 

$

1,194

 

$

1,208

 

$

5,086

 

$

5,006

 

$

4,839

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Unallocated

 

$

22

 

$

 —

 

$

50

 

$

 2

 

$

 6

 

Elimination of Dual Credit

 

 

(434)

 

 

(462)

 

 

(1,797)

 

 

(1,793)

 

 

(1,596)

 

Total Company

 

$

7,863

 

$

8,278

 

$

32,765

 

$

31,657

 

$

30,109

 

 

 

 

Supplemental Unaudited Net Sales on a Disaggregated Basis

Based on Segment Structure Effective in the Second Quarter of 2019 – Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2019

 

Net Sales (Millions)

    

United States

 

Asia Pacific

    

Europe, Middle East and Africa

    

Latin America and Canada

    

Other Unallocated

    

Worldwide

 

Safety and Industrial

 

$

1,150

 

$

768

 

$

720

 

$

348

 

$

 —

 

$

2,986

 

Transportation and Electronics

 

 

561

 

 

1,258

 

 

386

 

 

152

 

 

 —

 

 

2,357

 

Health Care

 

 

781

 

 

378

 

 

438

 

 

141

 

 

 —

 

 

1,738

 

Consumer

 

 

687

 

 

270

 

 

137

 

 

100

 

 

 —

 

 

1,194

 

Corporate and Unallocated

 

 

19

 

 

 2

 

 

 1

 

 

 2

 

 

(2)

 

 

22

 

Elimination of Dual Credit

 

 

(152)

 

 

(198)

 

 

(58)

 

 

(26)

 

 

 —

 

 

(434)

 

Total Company

 

$

3,046

 

$

2,478

 

$

1,624

 

$

717

 

$

(2)

 

$

7,863

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2018

 

Net Sales (Millions)

    

United States

 

Asia Pacific

    

Europe, Middle East and Africa

    

Latin America and Canada

    

Other Unallocated

    

Worldwide

 

Safety and Industrial

 

$

1,216

 

$

839

 

$

833

 

$

381

 

$

(1)

 

$

3,268

 

Transportation and Electronics

 

 

569

 

 

1,384

 

 

416

 

 

151

 

 

(1)

 

 

2,519

 

Health Care

 

 

748

 

 

385

 

 

459

 

 

153

 

 

 —

 

 

1,745

 

Consumer

 

 

658

 

 

290

 

 

149

 

 

110

 

 

 1

 

 

1,208

 

Corporate and Unallocated

 

 

 —

 

 

 1

 

 

 —

 

 

 —

 

 

(1)

 

 

 —

 

Elimination of Dual Credit

 

 

(147)

 

 

(223)

 

 

(65)

 

 

(28)

 

 

 1

 

 

(462)

 

Total Company

 

$

3,044

 

$

2,676

 

$

1,792

 

$

767

 

$

(1)

 

$

8,278

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2018

 

Net Sales (Millions)

    

United States

 

Asia Pacific

    

Europe, Middle East and Africa

    

Latin America and Canada

    

Other Unallocated

    

Worldwide

 

Safety and Industrial

 

$

4,921

 

$

3,099

 

$

3,001

 

$

1,476

 

$

(3)

 

$

12,494

 

Transportation and Electronics

 

 

2,406

 

 

5,514

 

 

1,578

 

 

610

 

 

(2)

 

 

10,106

 

Health Care

 

 

3,039

 

 

1,458

 

 

1,733

 

 

596

 

 

 —

 

 

6,826

 

Consumer

 

 

3,045

 

 

1,021

 

 

574

 

 

447

 

 

(1)

 

 

5,086

 

Corporate and Unallocated

 

 

48

 

 

 —

 

 

 —

 

 

 3

 

 

(1)

 

 

50

 

Elimination of Dual Credit

 

 

(619)

 

 

(838)

 

 

(232)

 

 

(108)

 

 

 —

 

 

(1,797)

 

Total Company

 

$

12,840

 

$

10,254

 

$

6,654

 

$

3,024

 

$

(7)

 

$

32,765

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2017

 

Net Sales (Millions)

    

United States

 

Asia Pacific

    

Europe, Middle East and Africa

    

Latin America and Canada

    

Other Unallocated

    

Worldwide

 

Safety and Industrial

 

$

4,605

 

$

2,981

 

$

2,869

 

$

1,497

 

$

(6)

 

$

11,946

 

Transportation and Electronics

 

 

2,372

 

 

5,328

 

 

1,550

 

 

615

 

 

(4)

 

 

9,861

 

Health Care

 

 

3,037

 

 

1,346

 

 

1,667

 

 

587

 

 

(2)

 

 

6,635

 

Consumer

 

 

2,943

 

 

1,029

 

 

585

 

 

450

 

 

(1)

 

 

5,006

 

Corporate and Unallocated

 

 

 6

 

 

(1)

 

 

 1

 

 

(4)

 

 

 —

 

 

 2

 

Elimination of Dual Credit

 

 

(591)

 

 

(874)

 

 

(216)

 

 

(112)

 

 

 —

 

 

(1,793)

 

Total Company

 

$

12,372

 

$

9,809

 

$

6,456

 

$

3,033

 

$

(13)

 

$

31,657

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2016

 

Net Sales (Millions)

    

United States

 

Asia Pacific

    

Europe, Middle East and Africa

    

Latin America and Canada

    

Other Unallocated

    

Worldwide

 

Safety and Industrial

 

$

4,387

 

$

2,742

 

$

2,659

 

$

1,423

 

$

 5

 

$

11,216

 

Transportation and Electronics

 

 

2,469

 

 

4,670

 

 

1,499

 

 

626

 

 

 3

 

 

9,267

 

Health Care

 

 

2,946

 

 

1,251

 

 

1,637

 

 

542

 

 

 1

 

 

6,377

 

Consumer

 

 

2,922

 

 

921

 

 

572

 

 

423

 

 

 1

 

 

4,839

 

Corporate and Unallocated

 

 

 6

 

 

 —

 

 

 1

 

 

(1)

 

 

 —

 

 

 6

 

Elimination of Dual Credit

 

 

(542)

 

 

(737)

 

 

(205)

 

 

(112)

 

 

 —

 

 

(1,596)

 

Total Company

 

$

12,188

 

$

8,847

 

$

6,163

 

$

2,901

 

$

10

 

$

30,109