3M 2010 Annual Report Download - page 48

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42
Management’s Responsibility for Financial Reporting
Management is responsible for the integrity and objectivity of the financial information included in this report. The
financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America. Where necessary, the financial statements reflect estimates based on management’s judgment.
Management has established and maintains a system of internal accounting and other controls for the Company and
its subsidiaries. This system and its established accounting procedures and related controls are designed to provide
reasonable assurance that assets are safeguarded, that the books and records properly reflect all transactions, that
policies and procedures are implemented by qualified personnel, and that published financial statements are properly
prepared and fairly presented. The Company’s system of internal control is supported by widely communicated
written policies, including business conduct policies, which are designed to require all employees to maintain high
ethical standards in the conduct of Company affairs. Internal auditors continually review the accounting and control
system.
3M Company
Management’s Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining an adequate system of internal control over financial
reporting. Management conducted an assessment of the Company’s internal control over financial reporting based
on the framework established by the Committee of Sponsoring Organizations of the Treadway Commission in
Internal Control — Integrated Framework. Based on the assessment, management concluded that, as of
December 31, 2010, the Company’s internal control over financial reporting is effective.
Management’s assessment of the effectiveness of the Company’s internal control over financial reporting as of
December 31, 2010 excluded Cogent Inc., Arizant Inc. and Attenti Holdings S.A., which were all acquired by the
Company in the fourth quarter of 2010 in purchase business combinations. Total assets and total net sales recorded
by the Company related to these acquisitions, in the aggregate, represented less than 10 percent of consolidated
total assets and less than 1 percent of consolidated net sales of the Company, respectively, as of and for the year
ended December 31, 2010. Companies are allowed to exclude acquisitions from their assessment of internal control
over financial reporting during the first year of an acquisition while integrating the acquired company under guidelines
established by the Securities and Exchange Commission.
The Company’s internal control over financial reporting as of December 31, 2010 has been audited by
PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which is
included herein, which expresses an unqualified opinion on the effectiveness of the Company’s internal control over
financial reporting as of December 31, 2010.
3M Company