Why is 3M filing this 8-K to update its 2008 Annual Report?

3M is filing this 8-K to retrospectively update its 2008 Form 10-K to reflect significant changes in its business segment reporting structure and the adoption of new accounting standards that became effective in the first quarter of 2009. These updates are intended to provide a more accurate and current view of the company's operational performance and financial reporting.

What are the main changes to 3M's business segments?

The primary changes involve product moves between existing segments and the creation of a new Renewable Energy Division. Certain window films were moved from Safety, Security and Protection Services to the Industrial and Transportation segment's new Renewable Energy Division. Additionally, the consumer retail portion of the acquired Aearo business, focused on personal safety products for consumers, was moved from Safety, Security and Protection Services to the Consumer and Office segment. The company also implemented a dual credit system for U.S. sales and operating income to incentivize domestic growth.

What new accounting standards has 3M adopted?

3M has retrospectively adopted two new accounting standards effective January 1, 2009: FSP No. APB 14-1, which addresses the accounting for convertible debt instruments that may be settled in cash upon conversion, and SFAS No. 160, which amends accounting rules for noncontrolling interests in consolidated financial statements.

How will these changes affect the comparability of 3M's financial results?

The retrospective adjustments and segment realignments mean that financial results reported for prior periods (e.g., 2008) in the updated sections of the 2008 10-K will reflect the new segment structure and accounting treatments. This improves comparability with 2009 reporting but means investors should carefully review historical data in light of these changes. The dual credit system also adds complexity to segment performance evaluation.

MMM 8-K SEC Disclosure — May 13, 2009

Summary

This 8-K filing from 3M Company (MMM), filed on May 12, 2009, primarily serves to update the company's 2008 Annual Report (Form 10-K) with significant changes in its business segment reporting and accounting practices, effective as of the first quarter of 2009. Investors should note the retrospective adjustments made to align business segments around market and customer focus, including product reallocations and the adoption of new accounting standards. These changes aim to provide a clearer view of the company's operational performance and financial position as it navigates the economic environment of 2009. The core of this update involves the realignment of specific product lines between business segments. Notably, certain window films were moved from Safety, Security and Protection Services to the newly created Renewable Energy Division within the Industrial and Transportation segment, and consumer-facing Aearo products shifted from Safety, Security and Protection Services to the Consumer and Office segment. Furthermore, 3M implemented a dual credit system for U.S. sales and operating income to better incentivize domestic growth. The adoption of new accounting pronouncements, specifically FSP No. APB 14-1 concerning convertible debt and SFAS No. 160 for noncontrolling interests, also impacts prior period reporting and comparability.

Key Highlights

13M is updating its 2008 Form 10-K to reflect changes in business segment reporting and accounting practices effective Q1 2009.
2Product lines have been reallocated between segments to align with market and customer focus, including window films moving to the new Renewable Energy Division (Industrial & Transportation) and consumer safety products to Consumer & Office.
3The company adopted new accounting standards FSP No. APB 14-1 (convertible debt) and SFAS No. 160 (noncontrolling interests) retrospectively from January 1, 2009.
4A new 'dual credit' reporting system for U.S. sales and operating income has been implemented to incentivize domestic sales growth.
5These segment realignments resulted in retrospective adjustments to prior periods' reported net sales, such as a $152 million increase for Industrial and Transportation and a $49 million increase for Consumer and Office in 2008 due to product moves.
6The filing supersedes prior financial statements and information in the 2008 10-K concerning these updated sections.

3M CO 8-K Report, Corporate Update (May 13, 2009)

Summary

Key Highlights

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