0001558370-16-004144.txt : 20160315 0001558370-16-004144.hdr.sgml : 20160315 20160315134343 ACCESSION NUMBER: 0001558370-16-004144 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20160315 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20160315 DATE AS OF CHANGE: 20160315 FILER: COMPANY DATA: COMPANY CONFORMED NAME: 3M CO CENTRAL INDEX KEY: 0000066740 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 410417775 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03285 FILM NUMBER: 161506348 BUSINESS ADDRESS: STREET 1: 3M CENTER STREET 2: BLDG. 220-11W-02 CITY: ST PAUL STATE: MN ZIP: 55144-1000 BUSINESS PHONE: 6517332204 MAIL ADDRESS: STREET 1: 3M CENTER STREET 2: BLDG. 220-11W-02 CITY: ST. PAUL STATE: MN ZIP: 55144-1000 FORMER COMPANY: FORMER CONFORMED NAME: MINNESOTA MINING & MANUFACTURING CO DATE OF NAME CHANGE: 19920703 8-K 1 mmm-20160315x8k.htm 8-K mmm_8K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON,  D.C. 20549 

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of report (Date of earliest event reported):  March 15, 2016

 

 

3M COMPANY

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

 

 

Delaware 

(State or Other Jurisdiction of Incorporation)

 

 

 

File No. 1-3285

 

41-0417775

(Commission File Number)

 

(IRS Employer Identification No.)

 

 

 

3M Center, St. Paul,  Minnesota

 

55144-1000

(Address of Principal Executive Offices)

 

(Zip Code)

 

 

 

(651) 733-1110

(Registrant’s Telephone Number, Including Area Code)

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 

 

Item 2.02.  Results of Operations and Financial Condition

 

As described in this Current Report, during the first quarter of 2016, 3M made a product line reporting change involving two of its business segments. Elements of the electronic bonding product lines were previously separately reflected in the Electronics and Energy business segment and the Industrial business segment. Effective the first quarter of 2016, certain sales and operating income results for these product lines in aggregate were equally divided between these two business segments. This change resulted in a decrease in net sales for total year 2015 of $33 million in the Industrial business segment offset by a corresponding increase in the Electronics and Energy business segment. This Current Report includes supplemental unaudited historical information relative to business segment sales and operating income on both an annual and quarterly basis for the years ended December 31, 2015, 2014 and 2013 (furnished hereunder as Exhibit 99 and incorporated herein by reference). The Company did not operate under this 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, 2016.

 

The information contained in this Current Report shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, or the Exchange Act.

 

 

Item 9.01.  Financial Statements and Exhibits

 

(d) Exhibits

 

 

 

 

Exhibit Number

 

Description

 

 

 

99

 

Supplemental unaudited historical information relative to business segment changes effected during the first quarter of 2016 (furnished pursuant to Item 2.02 hereof)

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

 

 

3M COMPANY

 

 

 

 

By: /s/

Nicholas C. Gangestad

 

 

Nicholas C. Gangestad,

 

 

Senior Vice President and Chief Financial Officer

 

 

 

Dated: March 15, 2016

 

 

 

 

2

 

EX-99 2 mmm-20160315xex99.htm EX-99 mmm_Ex99

EXHIBIT 99

 

This Current Report on Form 8-K includes supplemental unaudited historical business segment net sales and operating income information that reflects a product line reporting change involving two of its business segments (provided on an annual and quarterly basis for the years ended December 31, 2015, 2014 and 2013). The Company did not operate under this 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, 2016.

 

Effective in the first quarter of 2016, 3M changed its business segment reporting in its continuing effort to improve the alignment of its businesses around markets and customers.

 

The change between business segments was as follows:

·

Elements of the electronic bonding product lines were previously separately reflected in the Electronics Materials Solutions Division (Electronics and Energy business segment) and the Industrial Adhesives and Tapes Division (Industrial business segment). Effective in the first quarter of 2016, certain sales and operating income results for these electronic bonding product lines in aggregate were equally divided between the Electronics and Energy business segment and Industrial business segment. This change resulted in a decrease in net sales for total year 2015 of $33 million in the Industrial business segment offset by a corresponding increase in the Electronics and Energy business segment.

 

The financial information presented herein reflects the impact of the preceding changes for all periods presented. The impact of this change on previously reported 2015 business segment net sales and operating income is summarized as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

Operating Income

 

Year ended December 31, 2015

 

Previously

 

 

 

 

 

Previously

 

 

 

 

 

(Millions)

    

Reported

    

Revised

    

Change

    

Reported

    

Revised

    

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial

 

$
10,328

 

$
10,295

 

$
(33)

 

$
2,263

 

$
2,256

 

$
(7)

 

Safety and Graphics

 

 
5,515

 

 
5,515

 

 

 —

 

 
1,305

 

 
1,305

 

 

 —

 

Health Care

 

 
5,420

 

 
5,420

 

 

 —

 

 
1,724

 

 
1,724

 

 

 —

 

Electronics and Energy

 

 
5,220

 

 
5,253

 

 
33

 

 
1,102

 

 
1,109

 

 
7

 

Consumer

 

 
4,422

 

 
4,422

 

 

 —

 

 
1,046

 

 
1,046

 

 

 —

 

Corporate and Unallocated

 

 
1

 

 
1

 

 

 —

 

 
(355)

 

 
(355)

 

 

 —

 

Elimination of Dual Credit

 

 
(632)

 

 
(632)

 

 

 —

 

 
(139)

 

 
(139)

 

 

 —

 

Total Company

 

$
30,274

 

$
30,274

 

$

 —

 

$
6,946

 

$
6,946

 

$

 —

 

 

3M’s businesses are organized, managed and internally grouped into segments based on differences in markets, products, technologies and services. 3M manages its operations in five business segments: Industrial; Safety and Graphics; Health Care; Electronics and Energy; and Consumer. 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. 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 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 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 2016

Net Sales 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

First

 

Second

 

Third

 

Fourth

 

Total

 

(Millions)

    

Quarter

    

Quarter

    

Quarter

    

Quarter

    

Year

 

Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
2,656

 

$
2,632

 

$
2,557

 

$
2,450

 

$
10,295

 

2014

 

 
2,778

 

 
2,814

 

 
2,770

 

 
2,623

 

 
10,985

 

2013

 

 
2,689

 

 
2,682

 

 
2,693

 

 
2,589

 

 
10,653

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Safety and Graphics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
1,372

 

$
1,432

 

$
1,417

 

$
1,294

 

$
5,515

 

2014

 

 
1,423

 

 
1,494

 

 
1,448

 

 
1,367

 

 
5,732

 

2013

 

 
1,399

 

 
1,434

 

 
1,429

 

 
1,322

 

 
5,584

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Health Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
1,329

 

$
1,364

 

$
1,346

 

$
1,381

 

$
5,420

 

2014

 

 
1,374

 

 
1,416

 

 
1,390

 

 
1,392

 

 
5,572

 

2013

 

 
1,311

 

 
1,336

 

 
1,328

 

 
1,359

 

 
5,334

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronics and Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
1,324

 

$
1,312

 

$
1,397

 

$
1,220

 

$
5,253

 

2014

 

 
1,309

 

 
1,422

 

 
1,503

 

 
1,374

 

 
5,608

 

2013

 

 
1,281

 

 
1,340

 

 
1,450

 

 
1,326

 

 
5,397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
1,048

 

$
1,111

 

$
1,162

 

$
1,101

 

$
4,422

 

2014

 

 
1,079

 

 
1,139

 

 
1,177

 

 
1,128

 

 
4,523

 

2013

 

 
1,081

 

 
1,098

 

 
1,153

 

 
1,103

 

 
4,435

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Unallocated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
2

 

$
(4)

 

$
1

 

$
2

 

$
1

 

2014

 

 
3

 

 

 —

 

 
2

 

 

 —

 

 
5

 

2013

 

 
2

 

 
2

 

 
1

 

 
3

 

 
8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination of Dual Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
(153)

 

$
(161)

 

$
(168)

 

$
(150)

 

$
(632)

 

2014

 

 
(135)

 

 
(151)

 

 
(153)

 

 
(165)

 

 
(604)

 

2013

 

 
(129)

 

 
(140)

 

 
(138)

 

 
(133)

 

 
(540)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
7,578

 

$
7,686

 

$
7,712

 

$
7,298

 

$
30,274

 

2014

 

 
7,831

 

 
8,134

 

 
8,137

 

 
7,719

 

 
31,821

 

2013

 

 
7,634

 

 
7,752

 

 
7,916

 

 
7,569

 

 
30,871

 

 

 

 

Supplemental Unaudited Business Segment Information

Based on Segment Structure Effective in the First Quarter of 2016

Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

First

 

Second

 

Third

 

Fourth

 

Total

 

(Millions)

    

Quarter

    

Quarter

    

Quarter

    

Quarter

    

Year

 

Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
596

 

$
608

 

$
578

 

$
474

 

$
2,256

 

2014

 

 
616

 

 
615

 

 
614

 

 
536

 

 
2,381

 

2013

 

 
576

 

 
601

 

 
570

 

 
554

 

 
2,301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Safety and Graphics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
335

 

$
364

 

$
324

 

$
282

 

$
1,305

 

2014

 

 
318

 

 
353

 

 
340

 

 
285

 

 
1,296

 

2013

 

 
332

 

 
328

 

 
313

 

 
254

 

 
1,227

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Health Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
408

 

$
440

 

$
432

 

$
444

 

$
1,724

 

2014

 

 
427

 

 
434

 

 
432

 

 
431

 

 
1,724

 

2013

 

 
404

 

 
417

 

 
426

 

 
425

 

 
1,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronics and Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
285

 

$
278

 

$
344

 

$
202

 

$
1,109

 

2014

 

 
229

 

 
294

 

 
340

 

 
259

 

 
1,122

 

2013

 

 
199

 

 
239

 

 
301

 

 
222

 

 
961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
240

 

$
259

 

$
293

 

$
254

 

$
1,046

 

2014

 

 
228

 

 
241

 

 
272

 

 
254

 

 
995

 

2013

 

 
237

 

 
235

 

 
247

 

 
226

 

 
945

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Unallocated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
(100)

 

$
(74)

 

$
(58)

 

$
(123)

 

$
(355)

 

2014

 

 
(72)

 

 
(48)

 

 
(63)

 

 
(67)

 

 
(250)

 

2013

 

 
(74)

 

 
(87)

 

 
(88)

 

 
(73)

 

 
(322)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination of Dual Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
(34)

 

$
(35)

 

$
(37)

 

$
(33)

 

$
(139)

 

2014

 

 
(30)

 

 
(33)

 

 
(34)

 

 
(36)

 

 
(133)

 

2013

 

 
(28)

 

 
(31)

 

 
(30)

 

 
(29)

 

 
(118)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$
1,730

 

$
1,840

 

$
1,876

 

$
1,500

 

$
6,946

 

2014

 

 
1,716

 

 
1,856

 

 
1,901

 

 
1,662

 

 
7,135

 

2013

 

 
1,646

 

 
1,702

 

 
1,739

 

 
1,579

 

 
6,666