3M 2009 Annual Report Download - page 77

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71
Business-specific asset impairment charges for 2007 totaled $35 million. This included charges of $24 million related
to property, plant and equipment associated with the Company’s decision to phaseout operations at a New Jersey
roofing granule facility (Safety, Security and Protection Services segment) and charges of $11 million ($10 million
related to property, plant and equipment and $1 million related to intangible assets) related to the Company’s
decision to close an Electro and Communications facility in Wisconsin.
Exit Activities:
During the second and third quarters of 2008, management approved and committed to undertake certain exit
activities, which resulted in a pre-tax charge of $68 million. These charges primarily related to employee-related
liabilities and fixed asset impairments. During the fourth quarter 2008, a pre-tax benefit of $10 million was recorded,
which primarily related to adjustments to employee-related liabilities for second and third-quarter 2008 exit activities.
In total for 2008, these actions resulted in pre-tax charges for Industrial and Transportation ($26 million); Display and
Graphics ($18 million); Health Care ($9 million); Safety, Security and Protection Services ($3 million); and Corporate
and Unallocated ($2 million). These charges were recorded in cost of sales ($38 million), selling, general and
administrative expenses ($17 million), and research, development and related expenses ($3 million).
During the second half of 2007, the Company recorded net pre-tax charges of $45 million related to exit activities.
These charges related to employee reductions and fixed asset impairments, including the consolidation of certain
flexible circuit manufacturing operations ($23 million recorded in the Electro and Communications segment) and
other actions, primarily in the Display and Graphics segment and Industrial and Transportation segment. These
charges were recorded in cost of sales and selling, general and administrative expenses and research, development
and related expenses.