3M 2012 Annual Report Download - page 122

116
Business Segment Information
Net Sales
Operating Income
(Millions)
2012
2011
2010
2012
2011
2010
Industrial and Transportation
$
10,346
$
10,073
$
8,429
$
2,258
$
2,057
$
1,754
Health Care
5,158
5,031
4,513
1,646
1,489
1,362
Consumer and Office
4,316
4,153
3,853
930
840
840
Safety, Security and
Protection Services
3,802
3,821
3,316
847
814
709
Display and Graphics
3,560
3,674
3,884
693
788
946
Electro and Communications
3,228
3,306
3,043
691
712
670
Corporate and Unallocated
5
11
10
(469)
(421)
(278)
Elimination of Dual Credit
(511)
(458)
(386)
(113)
(101)
(85)
Total Company
$
29,904
$
29,611
$
26,662
$
6,483
$
6,178
$
5,918
Assets
Depreciation & Amortization
Capital Expenditures
(Millions)
2012
2011
2010
2012
2011
2010
2012
2011
2010
Industrial and Transportation
$
9,148
$
7,960
$
6,703
$
353
$
362
$
326
$
521
$
471
$
331
Health Care
4,304
4,198
4,189
169
199
131
113
159
78
Consumer and Office
2,421
2,400
2,149
109
101
100
103
97
69
Safety, Security and
Protection Services
3,966
3,954
3,996
175
187
168
121
118
130
Display and Graphics
3,714
3,617
3,729
190
192
187
156
120
185
Electro and Communications
2,398
2,308
2,245
109
103
101
159
154
110
Corporate and Unallocated
7,925
7,179
7,145
183
92
107
311
260
188
Total Company
$
33,876
$
31,616
$
30,156
$
1,288
$
1,236
$
1,120
$
1,484
$
1,379
$
1,091
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 six operating 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 Occupational
Health and Environmental Safety Division within the Safety, Security and Protection Services business segment; however,
the Industrial and Transportation business segment also sells this product to certain customers in its U.S. markets. In this
example, the non-primary selling segment (Industrial and Transportation) 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.