3M 2010 Annual Report Download - page 120

114
General Employees’ Stock Purchase Plan (GESPP):
In May 1997, shareholders approved 30 million shares for issuance under the Company’s GESPP. Substantially all
employees are eligible to participate in the plan. Participants are granted options at 85% of market value at the date
of grant. There are no GESPP shares under option at the beginning or end of each year because options are granted
on the first business day and exercised on the last business day of the same month.
General Employees’ Stock Purchase Plan
2010
2009
2008
Exercise
Exercise
Exercise
Shares
Price*
Shares
Price*
Shares
Price*
Options granted ......................
1,325,579
$
70.57
1,655,936
$
50.58
1,624,775
$
62.68
Options exercised ...................
(1,325,579
)
70.57
(1,655,936
)
50.58
(1,624,775
)
62.68
Shares available for grant —
December 31 ......................
4,334,360
5,659,939
7,315,875
* Weighted average
The weighted-average fair value per option granted during 2010, 2009 and 2008 was $12.45, $8.93 and $11.06,
respectively. The fair value of GESPP options was based on the 15% purchase price discount. The Company
recognized compensation expense for GESSP options of $17 million in 2010, $15 million in 2009 and $18 million in
2008.
NOTE 17. Business Segments
Effective in the first quarter of 2010, 3M made certain product moves between its business segments in its continuing
effort to drive growth by aligning businesses around markets and customers. There were no changes impacting
business segments related to product moves for the Health Care segment, Consumer and Office segment, Display
and Graphics segment, or Electro and Communications segment. The product moves between business segments
are summarized as follows:
x Certain acoustic systems products in the Occupational Health and Environmental Safety Division (part of
the Safety, Security and Protection Services business segment) were transferred to the Automotive
Division within the Industrial and Transportation business segment. In addition, thermal acoustics
systems products which were included in the Occupational Health and Environmental Safety Division as
a result of 3M’s April 2008 acquisition of Aearo Holding Corp. were transferred to the Aerospace and
Aircraft Maintenance Department within the Industrial and Transportation business segment. These
product moves establish an acoustic center of excellence within the Industrial and Transportation
business segment. The preceding product moves resulted in an increase in net sales for total year 2009
of $116 million for Industrial and Transportation, which was offset by a corresponding decrease in net
sales for Safety, Security and Protection Services.
3M’s businesses are organized, managed and internally grouped into segments based on differences in products,
technologies and services. 3M continues to manage its operations in six operating business segments: Industrial and
Transportation; Health Care; Display and Graphics; Consumer and Office; Safety, Security and Protection Services;
and Electro and Communications. 3M’s six business segments bring together common or related 3M technologies,
enhancing the development of innovative products and services and providing for efficient sharing of business
resources. These segments have worldwide responsibility for virtually all 3M product lines. 3M is not dependent on
any single product/service or market. Certain small businesses and lab-sponsored products, as well as various
corporate assets and expenses, are not attributed to the business segments. Transactions among reportable
segments are recorded at cost.
The financial information presented herein reflects the impact of all of the preceding segment structure changes for
all periods presented.