What is the primary purpose of this 8-K filing?

The primary purpose of this 8-K filing is to provide investors with supplemental unaudited financial data for the years 2000, 2001, and 2002, presented under 3M's newly realigned business segment structure. This allows for a more relevant historical analysis of performance as the company transitioned to this new organizational framework effective January 1, 2003.

How has 3M's business segment structure changed?

3M has restructured its organization, increasing the number of reportable business segments from six to seven. This strategic realignment aims for faster growth and a closer focus on specific markets and customers. The new structure became effective for internal management reporting on January 1, 2003.

What is the impact of EITF 00-25 on the reported financials?

Consistent with its 2002 10-K, 3M adopted Emerging Issues Task Force Issue No. 00-25, "Vendor Income Statement Characterization of Consideration Paid to a Reseller of the Vendor's Products." This resulted in a reclassification of approximately $25 million of advertising expenses from selling, general, and administrative expenses to net sales for the years 2001 and 2000. This change impacts the reported net sales figures but has no effect on operating income.

Are there any significant charges or one-time events impacting the operating income presented?

Yes, the provided financial data includes significant charges and adjustments. For example, operating income in 2002 included $202 million in restructuring charges. Operating income in 2001 was impacted by $504 million in net charges related to restructuring, acquisition costs, litigation accruals, and securities gains. Operating income in 2000 included net losses of $23 million, notably related to the phase-out of perfluorooctanyl-based chemistry products and asset dispositions. These items are often recorded in the 'Corporate and Unallocated' segment.

MMM 8-K SEC Disclosure

Summary

3M Company (MMM) filed an 8-K on April 4, 2003, to provide supplemental unaudited financial information reflecting its newly realigned business segments, effective January 1, 2003. This restructuring resulted in seven reportable segments, up from six. The filing includes historical financial data for the years 2000, 2001, and 2002, presented on an annual and quarterly basis according to the new segment structure. This allows investors to analyze performance under the reorganized framework prior to the official reporting of comparative results in the Q1 2003 10-Q. The data shows net sales and operating income for each of the seven segments (Health Care, Industrial, Consumer and Office, Display and Graphics, Electro and Communications, Safety, Security and Protection Services, and Transportation) as well as a Corporate and Unallocated category. Notably, the company also disclosed accounting adjustments related to "Vendor Income Statement Characterization of Consideration Paid to a Reseller" (EITF 00-25), which reclassified approximately $25 million of advertising expenses as net sales for 2001 and 2000, without impacting operating income. Restructuring charges and other one-time items were also detailed for the periods presented.

Key Highlights

13M is providing historical financial data (2000-2002) under a new seven-segment business structure, effective January 1, 2003.
2The new segment structure provides a closer focus on markets and customers, aiming for faster growth.
3Supplemental data includes Net Sales and Operating Income by segment, both quarterly and annually.
4The Health Care segment consistently showed strong Net Sales and Operating Income growth across the reported periods.
5The 'Electro and Communications' segment experienced a decline in both Net Sales and Operating Income from 2000 to 2002.
6The company adopted EITF 00-25, reclassifying approximately $25 million of advertising expenses to net sales for 2001-2000, with no operating income impact.
7Significant restructuring charges and other one-time items (e.g., perfluorooctanyl phase-out, asset dispositions, litigation accruals) impacted operating income in the 2000-2002 periods, particularly within the 'Corporate and Unallocated' segment.

3M CO 8-K Report (Apr 4, 2003)

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