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Please find page 118 of the 2015 3M annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.TableofContents
Item9.ChangesinandDisagreementsWithAccountantsonAccountingandFinancialDisclosure.
None.
Item9A.ControlsandProcedures.
a.TheCompanycarriedoutanevaluation,underthesupervisionandwiththeparticipationofitsmanagement,includingtheChief
ExecutiveOfficerandChiefFinancialOfficer,oftheeffectivenessofthedesignandoperationoftheCompany’s“disclosurecontrols
andprocedures”(asdefinedintheExchangeActRule13a-15(e))asoftheendoftheperiodcoveredbythisreport.Baseduponthat
evaluation,theChiefExecutiveOfficerandChiefFinancialOfficerconcludedthattheCompany’sdisclosurecontrolsand
proceduresareeffective.
b.TheCompany’smanagementisresponsibleforestablishingandmaintaininganadequatesystemofinternalcontroloverfinancial
reporting,asdefinedintheExchangeActRule13a-15(f).ManagementconductedanassessmentoftheCompany’sinternalcontrol
overfinancialreportingbasedontheframeworkestablishedbytheCommitteeofSponsoringOrganizationsoftheTreadway
CommissioninInternalControl—IntegratedFramework(2013).Basedontheassessment,managementconcludedthat,asof
December31,2015,theCompany’sinternalcontroloverfinancialreportingiseffective.Management’sassessmentofthe
effectivenessoftheCompany’sinternalcontroloverfinancialreportingasofDecember31,2015excludedCapitalSafetyGroup
S.A.R.L.andPolyporeInternational,Inc.’sSeparationMediaBusiness,whichwerebothacquiredbytheCompanyinAugust2015
inpurchasebusinesscombinations.Theseacquiredbusinesses’totalassetsandtotalnetsales,intheaggregate,representedlessthan
2percentandlessthan1percent,respectively,oftheCompany’sconsolidatedfinancialstatementamountsasofandfortheyear
endedDecember31,2015.Companiesareallowedtoexcludeacquisitionsfromtheirassessmentofinternalcontroloverfinancial
reportingduringthefirstyearofacquisitionwhileintegratingtheacquiredcompanyunderguidelinesestablishedbytheSecurities
andExchangeCommission.TheCompany’sinternalcontroloverfinancialreportingasofDecember31,2015hasbeenauditedby
PricewaterhouseCoopersLLP,anindependentregisteredpublicaccountingfirm,asstatedintheirreportwhichisincludedherein,
whichexpressesanunqualifiedopinionontheeffectivenessoftheCompany’sinternalcontroloverfinancialreportingasof
December31,2015.
c.TherewasnochangeintheCompany’sinternalcontroloverfinancialreportingthatoccurredduringtheCompany’smostrecently
completedfiscalquarterthathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theCompany’sinternalcontrolover
financialreporting.
TheCompanyisimplementinganenterpriseresourceplanning(“ERP”)systemonaworldwidebasis,whichisexpectedtoimprove
theefficiencyofcertainfinancialandrelatedtransactionprocesses.Thegradualimplementationisexpectedtooccurinphasesover
thenextseveralyears.TheimplementationofaworldwideERPsystemwilllikelyaffecttheprocessesthatconstituteourinternal
controloverfinancialreportingandwillrequiretestingforeffectiveness.
TheCompanycompletedimplementationwithrespecttoelementsofcertainprocesses/sub-processesinlimited
subsidiaries/locationsandwillcontinuetoroll-outtheERPsystemoverthenextseveralyears.Aswithanynewinformation
technologyapplicationweimplement,thisapplication,alongwiththeinternalcontrolsoverfinancialreportingincludedinthis
process,wasappropriatelyconsideredwithinthetestingforeffectivenesswithrespecttotheimplementationintheseinstances.We
concluded,aspartofourevaluationdescribedintheaboveparagraphs,thattheimplementationofERPinthesecircumstanceshas
notmateriallyaffectedourinternalcontroloverfinancialreporting.
Item9B.OtherInformation.
None.
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