SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

 

FORM 10-Q

 

 

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2004

 

Commission file number 1-3285

 

3M COMPANY

 

Telephone number: (651) 733-1110

 

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ý  No  o

 

Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).  Yes  ý  No  o

 

 

Shares of common stock outstanding at September 30, 2004:  778,533,778.

 

 

 

This document (excluding exhibits) contains 34 pages.

The table of contents is set forth on page 2.

The exhibit index begins on page 32.

 

 

 

 

3M COMPANY

FORM 10-Q

For the Quarterly Period Ended September 30, 2004

TABLE OF CONTENTS

 

 

PART I	FINANCIAL INFORMATION
ITEM 1.	Financial Statements	3
	Index to Financial Statements:
	Consolidated Statement of Income	3
	Consolidated Balance Sheet	4
	Consolidated Statement of Cash Flows	5
	Notes to Consolidated Financial Statements	6
	Note 1. Basis of Presentation	6
	Note 2. Acquisitions and Divestitures	8
	Note 3. Goodwill and Indefinite-Lived Intangible Assets	9
	Note 4. Supplemental Stockholders’ Equity and Comprehensive Income Information	10
	Note 5. Derivatives and Other Financial Instruments	11
	Note 6. Pension and Postretirement Benefit Plans	12
	Note 7. Commitments and Contingencies	13
	Note 8. Business Segments	14
	Note 9. Review Report of Independent Registered Public Accounting Firm	14
	Report of Independent Registered Public Accounting Firm	15
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
	Index to Management’s Discussion and Analysis:
	Overview	16
	Results of Operations	18
	Performance by Business Segment	20
	Financial Condition and Liquidity	24
	Forward-Looking Statements	27
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	28
ITEM 4.	Controls and Procedures	28
PART II	OTHER INFORMATION	29
ITEM 1.	Legal Proceedings	29
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
ITEM 3.	Defaults Upon Senior Securities	31
ITEM 4.	Submission of Matters to a Vote of Security Holders	31
ITEM 5.	Other Information	31
ITEM 6.	Exhibits	32
	Index to Exhibits	32

 

 

2

 

 

3M COMPANY

FORM 10-Q

For the Quarterly Period Ended September 30, 2004

PART I.  Financial Information

 

Item 1.  Financial Statements.

 

Consolidated Statement of Income

(Unaudited)

 

3M Company and Subsidiaries

 

		Three months ended September 30						Nine months ended September 30
(Millions, except per share amounts)		2004			2003			2004			2003
Net sales		$	4,969		$	4,616		$	14,920		$	13,514
Operating expenses
Cost of sales		2,457			2,322			7,345			6,856
Selling, general and administrative expenses		1,047			994			3,235			2,978
Research, development and related expenses		282			270			854			816
Other expense		—			—			—			93
Total		3,786			3,586			11,434			10,743
Operating income		1,183			1,030			3,486			2,771
Interest expense and income
Interest expense		17			22			52			69
Interest income		(12		)	(6		)	(32		)	(17		)
Total		5			16			20			52
Income before income taxes and minority interest		1,178			1,014			3,466			2,719
Provision for income taxes		389			339			1,144			897
Minority interest		14			12			52			38
Net income		$	775		$	663		$	2,270		$	1,784
Weighted average common shares outstanding — basic		780.6			784.6			782.0			782.2
Earnings per share — basic		$	.99		$	.85		$	2.90		$	2.28
Weighted average common shares outstanding — diluted		796.2			797.5			798.5			793.4
Earnings per share — diluted		$	.97		$	.83		$	2.84		$	2.25