3M 2006 Annual Report Download - page 78
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NOTE 4. 2006 Restructuring Actions
During 2006, the Company completed the identification of restructuring actions to be taken and obtained approvals from
the appropriate level of management relative to the following:
3KDUPDFHXWLFDOVEXVLQHVVDFWLRQV±HPSOR\HHUHODWHG asset impairment and other costs pertaining to the
&RPSDQ\¶VH[LWRILWVEUDQGHGSKDUPDceuticals operations. These costs included severance and benefits for
pharmaceuticals business employees who are not obtaining employment with the buyers as well as
impairment charges associated with certain assets not transferred to the buyers.
2YHUKHDGUHGXFWLRQDFWLRQV±HPSOR\HHUHODWHGFRVWVfor severance and benefits, costs associated with
actions to reduce the Company's cost structure by a similar amount as the corporate overhead costs that had
previously been allocated to the pharmaceuticals division.
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impairments, certain contractual REOLJDWLRQVDQGH[SHQVHVIURPWKHH[LWRIFHUWDLQSURGXFWOLQHV
Components of these restructuring actions include:
2006 Restructuring Actions
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Related Items Terminations Asset
and Other Impairments Total
Expense incurred in 2006:
Pharmaceuticals business actions $ 97 $ 8 $ 61 $ 166
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Non-cash charges in 2006:
Pharmaceuticals business actions ±
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$(179)
Cash payments in 2006:
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7RWDOFDVKSD\PHQWV ± ±
Accrued balances as of December 31, 2006:
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Income statement line in which the above 2006 expense is reflected:
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6HOOLQJJHQHUDODQGDGPLQLVWUDWLYHH[SHQVHV
5HVHDUFKGHYHORSPHQWDQGUHODWHGH[SHQVHV
Total
(Millions) and Benefits