3M 2006 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2006 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 116

  • 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


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:
 3KDUPDFHXWLFDOVEXVLQHVVDFWLRQV±HPSOR\HHUHODWHG asset impairment and other costs pertaining to the
&RPSDQ\¶VH[LWRILWVEUDQGHGSKDUPDceuticals 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.
 2YHUKHDGUHGXFWLRQDFWLRQV±HPSOR\HHUHODWHGFRVWVfor 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.
 %XVLQHVVVSHFLILFDFWLRQV±HPSOR\HHUHODWHGFRVWVIRUVHYHUDQFHDQGEHQHILWVIL[HGDQGLQWDQJLEOHDVVHW
impairments, certain contractual REOLJDWLRQVDQGH[SHQVHVIURPWKHH[LWRIFHUWDLQSURGXFWOLQHV
Components of these restructuring actions include:
2006 Restructuring Actions
(PSOR\HH &RQWUDFW 
Related Items Terminations Asset
and Other Impairments Total
Expense incurred in 2006:
Pharmaceuticals business actions $ 97 $ 8 $ 61 $ 166
 2YHUKHDGUHGXFWLRQDFWLRQV  ± ± 
 %XVLQHVVVSHFLILFDFWLRQV   
 7RWDOH[SHQVH    
Non-cash charges in 2006:
Pharmaceuticals business actions  ±   
 2YHUKHDGUHGXFWLRQDFWLRQV  ± ± 
%XVLQHVVVSHFLILFDFWLRQV  ±   
 7RWDOQRQFDVK  ± 
)
$(179)
Cash payments in 2006:
 3KDUPDFHXWLFDOVEXVLQHVVDFWLRQV ±  ± 
 2YHUKHDGUHGXFWLRQDFWLRQV ± ± ±   ±
 %XVLQHVVVSHFLILFDFWLRQV ± ± ±   ±
 7RWDOFDVKSD\PHQWV ±  ±   
Accrued balances as of December 31, 2006:
 3KDUPDFHXWLFDOVEXVLQHVVDFWLRQV   ± 
 2YHUKHDGUHGXFWLRQDFWLRQV  ± ± 
 %XVLQHVVVSHFLILFDFWLRQV   ±  
 7RWDODFFUXHGEDODQFH   ± 
Income statement line in which the above 2006 expense is reflected:
 &RVWRIVDOHV 
 6HOOLQJJHQHUDODQGDGPLQLVWUDWLYHH[SHQVHV 
 5HVHDUFKGHYHORSPHQWDQGUHODWHGH[SHQVHV 
Total   
(Millions) and Benefits