3M 2014 Annual Report Download - page 18

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12
party training, monitoring of networks and systems, and maintenance of backup and protective systems) which are
continuously reviewed and upgraded, the Company’s information technology networks and infrastructure may still be
vulnerable to damage, disruptions or shutdowns due to attack by hackers or breaches, employee error or malfeasance,
power outages, computer viruses, telecommunication or utility failures, systems failures, natural disasters or other
catastrophic events. It is possible for such vulnerabilities to remain undetected for an extended period, up to and including
several years. While we have experienced, and expect to continue to experience, these types of threats to the Company’s
information technology networks and infrastructure, none of them to date has had a material impact to the Company.
There may be other challenges and risks as the Company upgrades and standardizes its ERP system on a worldwide
basis. Any such events could result in legal claims or proceedings, liability or penalties under privacy laws, disruption in
operations, and damage to the Company’s reputation, which could adversely affect the Company’s business. Although the
Company maintains insurance coverage for various cybersecurity risks, there can be no guarantee that all costs or losses
incurred will be fully insured.
* The Company’s future results may be affected by various legal and regulatory proceedings and legal compliance risks,
including those involving product liability, antitrust, intellectual property, environmental, the U.S. Foreign Corrupt Practices
Act and other anti-bribery, anti-corruption, or other matters. The outcome of these legal proceedings may differ from the
Company’s expectations because the outcomes of litigation, including regulatory matters, are often difficult to reliably
predict. Various factors or developments can lead the Company to change current estimates of liabilities and related
insurance receivables where applicable, or make such estimates for matters previously not susceptible of reasonable
estimates, such as a significant judicial ruling or judgment, a significant settlement, significant regulatory developments or
changes in applicable law. A future adverse ruling, settlement or unfavorable development could result in future charges
that could have a material adverse effect on the Company’s results of operations or cash flows in any particular period.
For a more detailed discussion of the legal proceedings involving the Company and the associated accounting estimates,
see the discussion in Note 13 “Commitments and Contingencies” within the Notes to Consolidated Financial Statements.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
3M’s general offices, corporate research laboratories, and certain division laboratories are located in St. Paul, Minnesota.
The Company operates 88 manufacturing facilities in 30 states. The Company operates 127 manufacturing and
converting facilities in 38 countries outside the United States.
3M owns the majority of its physical properties. 3M’s physical facilities are highly suitable for the purposes for which they
were designed. Because 3M is a global enterprise characterized by substantial intersegment cooperation, properties are
often used by multiple business segments.
Item 3. Legal Proceedings.
Discussion of legal matters is incorporated by reference from Part II, Item 8, Note 13, “Commitments and Contingencies,”
of this document, and should be considered an integral part of Part I, Item 3, “Legal Proceedings.”
Item 4. Mine Safety Disclosures.
Pursuant to Section 1503 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Act"), the Company is
required to disclose, in connection with the mines it operates, information concerning mine safety violations or other
regulatory matters in its periodic reports filed with the SEC. For the year 2014, the information concerning mine safety
violations or other regulatory matters required by Section 1503(a) of the Act is included in Exhibit 95 to this annual report.