Summary
3M Company (MMM) filed an 8-K on March 15, 2016, primarily to disclose a change in its product line reporting structure. Effective the first quarter of 2016, 3M realigned certain electronic bonding product lines that were previously split between the Electronics and Energy and Industrial business segments. These product lines will now have their sales and operating income results equally divided between these two segments going forward. This reporting change impacted reported 2015 full-year net sales by $33 million, decreasing the Industrial segment's sales and increasing the Electronics and Energy segment's sales by that amount. Investors should note that this is a retrospective adjustment to reporting methodology, not an operational change, and the company will begin reporting under the new structure with its Q1 2016 10-Q filing. Supplemental historical information reflecting this change has been furnished.
Key Highlights
- 13M is implementing a product line reporting change for certain electronic bonding product lines starting Q1 2016.
- 2The change involves equally dividing sales and operating income of these product lines between the Electronics and Energy and Industrial segments.
- 3This realignment resulted in a $33 million decrease in 2015 net sales for the Industrial segment and a corresponding increase for the Electronics and Energy segment.
- 4The company is providing supplemental unaudited historical data to reflect this change for prior periods.
- 5This is a change in financial reporting and segment allocation, not an operational or business performance change.
- 6Comparative results under the new structure will be reported in the Q1 2016 10-Q filing.