3M 2009 Annual Report Download - page 38

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business segments. Foreign currency translation positively impacted Europe sales by 4.0 percent, the combined
Latin America and Canada area sales by 2.4 percent, and the Asia Pacific area by 3.2 percent, as the U.S. dollar
weakened in aggregate against currencies in these geographic areas. For 2008, international operations represented
approximately 64 percent of 3M’s sales.
Geographic Area Supplemental Information
Employees as of
December 31,
Capital
Spending
Property, Plant and
Equipment - net
(Millions, except
Employees) 2009 2008 2007 2009 2008 2007 2009 2008
United States............ 31,513 33,662 34,138 $ 464 $ 780 $ 841 $ 3,809 $ 3,901
Asia Pacific............... 13,834 13,960 12,970 215 338 299 1,366 1,304
Europe, Middle
East and Africa ..... 17,743 19,185 17,675 162 253 203 1,318 1,263
Latin America and
Canada ................. 11,745 12,376 11,456 62 100 79 507 418
Total Company ......... 74,835 79,183 76,239 $ 903 $ 1,471 $ 1,422 $ 7,000 $ 6,886
Employment:
At December 31, 2009, employment declined by 4,348 positions since year-end 2008, largely driven by restructuring
actions taken in the fourth quarter of 2008 through the third quarter of 2009. At December 31, 2008, employment
increased by approximately 2,900 positions since year-end 2007, with acquisitions during 2008 adding approximately
3,700 positions as of December 31, 2008. In 2008, 3M added employees in Brazil, India, Russia, China and Poland,
where total sales increased more than 15 percent. These increases were offset by reductions in employment in 2008
for a portion of the job eliminations that were announced in connection with restructuring and exit activities.
Capital Spending/Net Property, Plant and Equipment:
The bulk of 3M capital spending historically has been in the United States, resulting in higher net property, plant and
equipment balances in the United States. The Company is striving to more closely align its manufacturing and
sourcing with geographic market sales, and because approximately 63 percent of sales are outside the United
States, this would increase production outside the United States, helping to improve customer service and reduce
working capital requirements. The dollar amounts in the preceding table support this trend, as international capital
spending as a percent of worldwide capital spending increased from 41 percent in 2007 to 49 percent in 2009.
Capital expenditures were $903 million in 2009, compared to $1.471 billion in 2008 and $1.422 billion in 2007. In
response to global economic conditions, the Company reduced its capital spending significantly in 2009. A
substantial amount of the 2009 spending was carryover from 2008 or for tooling needed for new products and
continued operations. The Company expects 2010 capital spending to be approximately $1 billion as 3M continues to
fund growth opportunities around the world.