3M 2015 Annual Report Download - page 43

TableofContents
termnotesdue2030,whichintheaggregatetotalapproximately$1.9billionatissuedateexchangerates.Inaddition,August2015
issuancesincluded$450millionaggregateprincipalamountofthree-yearfixedratemedium-termnotesdue2018,$500million
aggregateprincipalamountoffive-yearfixedratemedium-termnotesdue2020,and$550millionaggregateprincipalamountof10-
yearfixedratemedium-termnotesdue2025,whichinaggregatetotal$1.5billion.In2014,proceedsfromdebtprimarilyrelatedto
theJune2014issuancesof$625millionaggregateprincipalamountoffive-yearfixedratemedium-termnotesdue2019and$325
millionaggregateprincipalamountofthirty-yearfixedratemedium-termnotesdue2044,aswellastheNovember2014issuances
of500millionEurosprincipalamountoffour-yearfloatingratemedium-termnotesdue2018and750millionEurosprincipal
amountof12-yearfixedratemedium-termnotesdue2026.Inaddition,proceedsfromdebtfor2014alsoincludebankborrowingsby
internationalsubsidiaries.Proceedsfromdebtin2013relatedtotheNovember2013issuanceofaneight-yearEurobondforan
amountof600millionEuros.RefertoNote10foradditionaldiscussionofdebt.
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RepurchasesofcommonstockaremadetosupporttheCompany’sstock-basedemployeecompensationplansandforothercorporate
purposes.InFebruary2016,3M’sBoardofDirectorsauthorizedtherepurchaseofupto$10billionof3M’soutstandingcommon
stock,whichreplacedtheCompany’sFebruary2014repurchaseprogram.Thisauthorizationhasnopre-establishedenddate.In
2015,2014,and2013,theCompanypurchasedmorethan$5billionofitsownstockeachyear.TheCompanyexpectsfull-year201
6grosssharerepurchaseswillbeintherangeof$4billionto$6billion.Formoreinformation,refertothetabletitled“Issuer
PurchasesofEquitySecurities”inPartII,Item5.TheCompanydoesnotutilizederivativeinstrumentslinkedtotheCompany’s
stock.
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Cashdividendspaidtoshareholderstotaled$2.561billion($4.10pershare)in2015,$2.216billion($3.42pershare)in2014,and
$1.730billion($2.54pershare)in2013.3Mhaspaiddividendssince1916.InFebruary2016,3M’sBoardofDirectorsdeclareda
first-quarter2016dividendof$1.11pershare,anincreaseof8percent.Thisisequivalenttoanannualdividendof$4.44pershare
andmarkedthe58thconsecutiveyearofdividendincreases.
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OnSeptember1,2014,3Mpurchased(viaSumitomo3MLimited)SumitomoElectricIndustries,Ltd.’s25percentinterestin
3M’sconsolidatedSumitomo3MLimitedsubsidiaryfor90billionJapaneseYen.Uponcompletionofthistransaction,3Mowned
100percentofSumitomo3MLimited.Thiswasreflectedasa“Purchaseofnoncontrollinginterest”inthefinancingsectionofthe
consolidatedstatementofcashflows.Inaddition,inApril2014,3Mpurchasedtheremainingnoncontrollinginterestina
consolidated3Msubsidiaryforanimmaterialamount,whichwasalsoclassifiedasa“Purchaseofnoncontrollinginterest”inthe
financingsectionoftheconsolidatedstatementofcashflows.
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InMarch2013,3Msoldsharesin3MIndiaLimited,asubsidiaryoftheCompany,inreturnfor$8million.Thenoncontrolling
interestsharesofthissubsidiarytradeonapublicexchangeinIndia.ThissaleofsharescompliedwithanamendmenttoIndian
securitiesregulationsthatrequired3MIndiaLimited,asalistedcompany,toachieveaminimumpublicshareholdingofatleast25
percent.Asaresultofthistransaction,3M’sownershipin3MIndiaLimitedwasreducedfrom76percentto75percent.The$8
millionreceivedinthefirstquarterof2013wasclassifiedasotherfinancingactivityintheconsolidatedstatementofcashflows.
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InadditiontotheMarch2013saleofnoncontrollinginterestdescribedabove,othercashflowsfromfinancingactivitiesmay
includevariousotheritems,suchaschangesincashoverdraftbalances,andprincipalpaymentsforcapitalleases.
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Off-Balance Sheet Arrangements and Contractual Obligations:
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AsofDecember31,2015,theCompanyhasnotutilizedspecialpurposeentitiestofacilitateoff-balancesheetfinancing
arrangements.Refertothesectionentitled“Warranties/Guarantees”inNote14fordiscussionofaccruedproductwarrantyliabilities
andguarantees.
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Inadditiontoguarantees,3M,inthenormalcourseofbusiness,periodicallyentersintoagreementsthatrequiretheCompanyto
indemnifyeithermajorcustomersorsuppliersforspecificrisks,suchasclaimsforinjuryorpropertydamagearisingoutoftheuse
of3Mproductsorthenegligenceof3Mpersonnel,orclaimsallegingthat3Mproductsinfringethird-partypatentsorother
intellectualproperty.While3M’smaximumexposureundertheseindemnificationprovisionscannotbeestimated,these
indemnificationsarenotexpectedtohaveamaterialimpactontheCompany’sconsolidatedresultsofoperationsorfinancial
condition.
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