Summary
3M Company (MMM) filed a Current Report on Form 8-K on May 17, 2016, to update its 2015 Annual Report on Form 10-K. The primary purpose of this filing is to announce a change in product line reporting effective in the first quarter of 2016. This change aims to improve the alignment of 3M's businesses with its markets and customers. The reporting change involves reallocating certain electronic bonding product lines between the Electronics and Energy business segment and the Industrial business segment. Specifically, sales and operating income previously attributed to the Industrial business segment will now be equally divided with the Electronics and Energy segment. For the full year 2015, this resulted in a $33 million decrease in net sales and a $7 million decrease in operating income for the Industrial segment, with a corresponding increase in the Electronics and Energy segment. All financial information presented in this report reflects this change for all periods shown.
Key Highlights
- 13M is updating its 2015 Annual Report due to a business segment reporting change.
- 2The change is effective as of the first quarter of 2016.
- 3The purpose of the change is to better align business segments with markets and customers.
- 4Specific product lines within 'electronic bonding' are being reallocated.
- 5These electronic bonding product lines were previously split between the Electronics and Energy and Industrial business segments.
- 6Under the new structure, sales and operating income for these lines will be equally divided between the two segments.
- 7For fiscal year 2015, this reallocation resulted in a $33 million net sales decrease and a $7 million operating income decrease for the Industrial segment, with a corresponding increase for the Electronics and Energy segment.