In: Accounting
Consolidated Statements of Income | |||
---|---|---|---|
Years ended December 31 ($ millions) | 2010 | 2009 | 2008 |
Net sales | $26,662 | $23,123 | $25,269 |
Operating expenses | |||
Cost of sales | 13,831 | 12,109 | 13,379 |
Selling, general and administrative expenses | 5,479 | 4,907 | 5,245 |
Research, development and related expenses | 1,434 | 1,293 | 1,404 |
Loss/(gain) from sale of business | -- | -- | 23 |
Total operating expenses | 20,744 | 18,309 | 20,051 |
Operating income | 5,918 | 4,814 | 5,218 |
Interest expenses and income | |||
Interest expense | 201 | 219 | 215 |
Interest income | (38) | (37) | (105) |
Total interest expense | 163 | 182 | 110 |
Income before income taxes | 5,755 | 4,632 | 5,108 |
Provision for income taxes | 1,592 | 1,388 | 1,588 |
Net income including noncontrolling interest | 4,163 | 3,244 | 3,520 |
Less: Net income attributable to noncontrolling interest | 78 | 51 | 60 |
Net income | $ 4,085 | $ 3,193 | $ 3,460 |
Consolidated Balance Sheets | ||
---|---|---|
($ millions) | 2010 | 2009 |
Assets | ||
Current Assets | ||
Cash and cash equivalents | $ 3,377 | $ 3,040 |
Marketable securities-current | 1,101 | 744 |
Accounts receivable-net | 3,615 | 3,250 |
Inventories | ||
Finished goods | 1,476 | 1,255 |
Work in process | 950 | 815 |
Raw materials and supplies | 729 | 569 |
Total inventories | 3,155 | 2,639 |
Other current assets | 967 | 1,122 |
Total current assets | 12,215 | 10,795 |
Marketable securities-noncurrent | 540 | 825 |
Investments | 146 | 103 |
Property, plant and equipment | 20,253 | 19,440 |
Less: Accumulated depreciation | (12,974) | (12,440) |
Property, plant and equipment-net | 7,279 | 7,000 |
Goodwill | 6,820 | 5,832 |
Intangible assets-net | 1,820 | 1,342 |
Prepaid pension benefits | 74 | 78 |
Other assets | 1,262 | 1,275 |
Total assets | $ 30,156 | $ 27,250 |
Liabilities | ||
Current liabilities | ||
Short-term borrowings and current portion of long-term debt | $ 1,269 | $ 613 |
Accounts payable | 1,662 | 1,453 |
Accrued payroll | 778 | 680 |
Accrued income taxes | 358 | 252 |
Other current liabilities | 2,022 | 1,899 |
Total current liabilities | 6,089 | 4,897 |
Long-term debt | 4,183 | 5,097 |
Pension and postretirement benefits | 2,013 | 2,227 |
Other liabilities | 1,854 | 1,727 |
Total liabilities | 14,139 | 13,948 |
Equity | ||
3M Company shareholders' equity: Common stock, par value $.01 per share; | 9 | 9 |
Additional paid-in capital | 3,468 | 3,153 |
Retained earnings | 25,995 | 23,753 |
Treasury stock | (10,266) | (10,397) |
Accumulated other comprehensive income (loss) | (3,543) | (3,754) |
Total 3M Company shareholders' equity | 15,663 | 12,764 |
Noncontrolling interest | 354 | 538 |
Total equity | 16,017 | 13,302 |
Total liabilities and equity | $ 30,156 | $ 27,250 |
Compute return on equity (ROE) for 2010. (Round your answers to two decimal places. Do not round until your final answer.)
2010 ROE =Answer%
(f) What is the nonoperating return component of ROE for 2010? (Round your answers to two decimal places.)
Hint: Use your prior rounded answers to compute
this answer.
2010 nonoperating return =Answer%