Direct Computation of Nonoperating Return Balance sheets and income statements for 3M Company follow 3M COMPANY Consolidated Statements of Income For Years Ended December 31 (5 millions) Net sales Operating expenses 2018 2017 $32,830 $31,721 Cost of sales 16.682 16,055 Selling general and administrative expenses 7602 5626 Research, development and related expenses 1,821 1,870 Gain on sale of businesses Total operating expenses Operating income Other expense, ne 647) (586) 25558 23,965 7272 7756 207 144 income before income taxes 7065 7,612 Net income including noncontrolling interest Provision for income taxes Less: Net income attributable to noncontrolling interest Net income attributable to 3M *Interest expense, gross is $350 million in 2018 and $322 million in 2017. 1637 2,679 5428 4933 14 11 $5.414 $4,922 Current assets 3M COMPANY Consolidated Balance Sheets At December 31 (5 millions) Cash and cash equivalents Marketable securities Accounts receivable Total inventories Prepaids Other current assets Total current assets Property, plant and equipment, net Goodwill Intangible assets-net Other assets Total assets 2018 2017 $2,853 $3,053 380 1,076 5.085 4,975 4366 4034 741 937 349 266 13,774 14.341 8,738 866 10.051 10.513 2,657 2,936 1345 1,395 $36.565 $38,051 Current labilities Short-term borrowings and current portion of long-term debe $1,211 $1,853 Accounts payable Accrued payroll Accrued income taxes Other current liabilities Total current liabilities Long-term debt Pension and postretirement benefits Other liabilities Total liabilities 3M Company shareholders equity Common stock par value Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income (loss) Total 3M Company shareholders' equity Noncontralling interest Total equity Total abilities and equity 2,296 1,945 749 870 243 310 2775 2709 7,244 7,687 13411 12,096 2,587 3620 3,010 2,962 $26,652 $26.365 9 5,643 5352 40701 39,179 (29.626) (25.887) 866) 7,026) 5861 11,627 52 55 9913 11,686 $36.565 $38051 In 2018, 3M's return on equity (ROE) is 50.39% and its return on net operating assets (RNOA) is 25.85%