MMM
#Good morning, <UNK>.
Yes, for the ---+ <UNK> I will first talk about the total year, and then I'll try to bring it into the quarter for you.
So for the year, at the time ---+ what I said three months ago is, yes, we are getting that benefit in the first quarter, but with our cash repatriation, it will end up being neutral for the year.
We now, for the year, see a total benefit of approximately $0.10 net, all-in.
If we net the ASU, we net the cash repatriation.
And the third piece that I'll remind you of, it also has an impact on our share count.
It increases our number of shares outstanding and of diluted shares outstanding.
So the net impact is, we now see as approximately $0.10 for the total year.
For the second quarter, the roughly 150 basis points lower that we saw in our tax rate from what I'd originally guided, all of that is coming from the increased employee stock options that we saw in the second quarter.
Nothing has changed on our plans that we communicated for cash repatriation and cash movements around the world.
Yes, so in the second half of the year, we are anticipating that we'll have lower employee stock options, and hence, lower tax benefit from that in the second half of the year.
That's built into our current guidance for the tax rate.
But we'll continue to be seeing the headwinds from our cash repatriation and cash movement actions that we are taking.
<UNK>, the signaling I take from that is, we continue to (inaudible) about for strategic investments, investments in accelerating growth in healthcare, as I think <UNK> just asked about that.
So I would see it as a commitment that we see opportunities and we want to keep investing in those, not we're running out of options of what we can do to deliver a current quarter or year's earnings.
The yen is part of that movement.
That's probably the most significant deviation.
The euro, I'd put very similar to what we've been expecting throughout the year.
I think the team just executed very well on the plan.
And the other thing that I think is important, in that, that business was up there.
We've been there for a long time.
We have very good relation into the marketplace.
And our service level is very good.
And one thing, I say, you know, business transformation starts and ends with the customer.
Canada was one of the first places we have implemented that program, which is now more than two years ago, and it's working well for us in Canada.
And when you can provide in the marketplace product that is adding value, and provide good service that is based on the demand from the customer going into all your pieces, the result is coming.
So there's a couple of things ---+ good growth, margin expansion, and I just think that team should be complimented for the way they operate today and the way they took on the pieces as one of the first places for us on a global base to execute that.
And actually helped us a lot in terms of the rollout that you see now in Europe.
So yes, it's a very nice result.
Is it a surprise.
No, it is not.
It's based on very good relation with customers, total dedication to what we call Customer First, and then the pieces help the customer and us in order to lay out the demand plans, and then for us is to deliver on it.
Good morning.
I think it's an imperative for you in order to be successful.
It's not either-or.
It's based on 3M's model, where our research and development is the heartbeat of the Company, and where we add value on a very attractive price point and value point for our customers that is helping them improve productivity and/or adding value to their end-products.
So for me, it's an imperative in order for you to be able to run a business like we are doing, with very good returns to our shareholders.
It's becoming more and more important, in my mind, if you would like to be successful long term, that you have a very robust research and development organization, with good platforms that they can use.
So you need technology platforms, and you need brains, and you need, equally important of course, input from your customers when you build those platforms.
Thank you.
Thank you.
To wrap up, our team delivered another good performance in the second quarter as it relates to both financial results and building for long-term success.
Going forward, we will remain focused on executing the 3M playbook, delivering efficient growth, and continuing to create greater value for our customers and shareholders.
Thank you for joining us, and we look forward to talking with you soon again.
Have a good day.
