3M 2010 Annual Report Download - page 123

Download and view the complete annual report

Please find page 123 of the 2010 3M annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

117
NOTE 18. Geographic Areas
Geographic area information is used by the Company as a secondary performance measure to manage its
businesses. Export sales and certain income and expense items are generally reported within the geographic area
where the final sales to 3M customers are made.
Net Sales
Operating Income
Property, Plant and
Equipment - net
(Millions)
2010
2009
2008
2010
2009
2008
2010
2009
United States ...............
$
9,210
$
8,509
$
9,179
$
1,636
$
1,640
$
1,578
$
3,888
$
3,809
Asia Pacific ..................
8,259
6,120
6,423
2,400
1,528
1,662
1,605
1,366
Europe, Middle East and
Africa ........................
6,259
5,972
6,941
1,112
1,003
1,294
1,239
1,318
Latin America and
Canada ....................
2,950
2,516
2,723
797
631
693
547
507
Other Unallocated .......
(16
)
6
3
(27
)
12
(9
)
—
—
Total Company ............
$
26,662
$
23,123
$
25,269
$
5,918
$
4,814
$
5,218
$
7,279
$
7,000
Restructuring and exit activities significantly impacted results by geographic area in 2009 and 2008. Refer to Note 4
for discussion of restructuring and exit activities.
Asia Pacific includes Japan net sales to customers of $2.464 billion in 2010, $1.979 billion in 2009 and $2.180 billion
in 2008. Asia Pacific includes Japan net property, plant and equipment of $420 million in 2010 and $364 million in
2009.
NOTE 19. Quarterly Data (Unaudited)
(Millions, except per-share amounts)
2010
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Year
2010
Net sales ...................................................
$
6,348
$
6,731
$
6,874
$
6,709
$
26,662
Cost of sales ..............................................
3,238
3,435
3,583
3,575
13,831
Net income attributable to 3M ...................
930
1,121
1,106
928
4,085
Earnings per share attributable to 3M
common shareholders — basic .............
1.31
1.57
1.55
1.30
5.72
Earnings per share attributable to 3M
common shareholders — diluted ...........
1.29
1.54
1.53
1.28
5.63
(Millions, except per-share amounts)
2009
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Year
2009
Net sales ...................................................
$
5,089
$
5,719
$
6,193
$
6,122
$
23,123
Cost of sales ..............................................
2,772
2,977
3,171
3,189
12,109
Net income attributable to 3M ...................
518
783
957
935
3,193
Earnings per share attributable to 3M
common shareholders — basic .............
0.75
1.12
1.36
1.32
4.56
Earnings per share attributable to 3M
common shareholders — diluted ...........
0.74
1.12
1.35
1.30
4.52
Gross profit is calculated as net sales minus cost of sales. In the first quarter of 2010, a charge resulting from the
March 2010 enactment of the Patient Protection and Affordable Care Act, including modifications made in the Health
Care and Education Reconciliation Act of 2010, decreased net income attributable to 3M by $84 million ($0.12 per
diluted share impact on year 2010). In 2009, restructuring charges, partially offset by a gain on sale of real estate,
decreased net income attributable to 3M by $119 million, or $0.17 per diluted share, with $45 million ($0.07 per
diluted share) in the first quarter, $60 million ($0.08 per diluted share) in the second quarter and $14 million ($0.02
per diluted share) in the third quarter.