3M 2006 Annual Report Download - page 35

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be given that the Company will be able to successfully manage price fluctuations or that future price fluctuations or
shortages will not have a material adverse effect on the Company.
* Acquisitions, strategic alliances, divestitures, and other unusual events resulting from portfolio management actions
and other evolving business strategies, and possible organizational restructuring could affect future results. The
Company monitors its business portfolio and organizational structure and has made and may continue to make
acquisitions, strategic alliances, divestitures and changes to its organizational structure. With respect to acquisitions,
IXWXUHUHVXOWVZLOOEHDIIHFWHGE\WKH&RPSDQ\¶VDELOLWy to integrate acquired businesses quickly and obtain the
anticipated synergies.
*7KH&RPSDQ\¶VIXWXUHUHVXOWVPD\EHDIIHFWHGLIWhe Company generates less productivity improvements than
estimated. The Company utilizes various tools, such as lean Six Sigma, to improve operational efficiency and
productivity. There can be no assurance that all of the projected productivity improvements will be realized.
*7KH&RPSDQ\¶VIXWXUHUHVXOWVPD\EHDIIHFWHGE\YDULRXV legal and regulatory proceedings, including those involving
product liability, antitrust, environmental or other matters. The outcome of these legal proceedings may differ from the
&RPSDQ\¶VH[SHFWDWLRQVEHFDXVHWKHRXWFRPHs 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 HIIHFWRQWKH&RPSDQ\¶VUHVXOWVRIRSHUDWLRQVRUFDVKIORZV
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.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
0¶VJHQHUDORIILFHVFRUSRUDWHUHVHDUFKODERUDWRULHVDQGFHUWain division laboratories are located in St. Paul, Minnesota.
In the United States, 3M has 10 sales offices in eight states and operates 66 manufacturing facilities in 26 states.
Internationally, 3M has 159 sales offices. The Company operates 79 manufacturing and converting facilities in 29
countries outside the United States.
3M owns substantially all of its physiFDOSURSHUWLHV0¶VSK\VLFDOIDFLOLWLHV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 referHQFHIURP3DUW,,,WHP1RWH³&RPPLWPHQWVDQG
&RQWLQJHQFLHV´RIWKLVGRFXPHQWDQGVKRXOGEHFRQVLGHUHGDQintegral part of Part I, ,WHP³/HJDO3URFHHGLQJV´
Item 4. Submission of Matters to a Vote of Security Holders.
None in the quarter ended December 31, 2006.
PART II
,WHP0DUNHWIRU5HJLVWUDQW¶V&RPPRQ(TXLW\5HODWHG6WRFNKROGHU0DWWHUVDQG,VVXHU3XUFKDVHVRI(TXLW\
Securities.
(TXLW\FRPSHQVDWLRQSODQV¶LQIRUPDWLRQLVincorporated by reference from Part III, ,WHP³6HFXULW\2ZQHUVKLSRI&HUWDLQ
%HQHILFLDO2ZQHUVDQG0DQDJHPHQWDQG5HODWHG6WRFNKROGHU0DWWHUV´RIWKLVGRFXPHQt, and should be considered an
integral part of Item 5. At January 31, 2007, there were apprR[LPDWHO\VKDUHKROGHUVRIUHFRUG0¶VVWRFNLVOLVWHG
on the New York Stock Exchange, Inc. (NYSE), the Pacific Exchange, Inc., the Chicago Stock Exchange, Inc., and the
SWX Swiss Exchange. Cash dividends declared and paid totaled $.46 per share for each quarter of 2006, and $.42 per
share for each quarter of 2005. Stock price comparisons follow: