3M 2004 Annual Report Download - page 41

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Environmental Remediation Liabilities and Insurance Receivables: As of December 31, 2004, the Company had
recorded liabilities of $39 million for estimated environmental remediation costs based upon an evaluation of
currently available facts with respect to each individual site and also recorded related insurance receivables of
$16 million. The Company records liabilities for remediation costs on an undiscounted basis when they are
probable and reasonably estimable, generally no later than the completion of feasibility studies or the Company’s
commitment to a plan of action. Liabilities for estimated costs of environmental remediation, depending on the site,
are based primarily upon internal or third-party environmental studies, and estimates as to the number,
participation level and financial viability of any other potentially responsible parties, the extent of the contamination
and the nature of required remedial actions. The Company adjusts recorded liabilities as further information
develops or circumstances change. The Company expects that it will pay the amounts recorded over the periods
of remediation for the applicable sites, currently ranging up to 30 years. Amounts expensed for environmental
remediation activities were not material at these locations, nor have there been material changes in the recorded
liabilities for environmental matters.
It is difficult to estimate the cost of environmental compliance and remediation given the uncertainties regarding
the interpretation and enforcement of applicable environmental laws and regulations, the extent of environmental
contamination and the existence of alternate cleanup methods. Developments may occur that could affect the
Company’s current assessment, including, but not limited to: (i) changes in the information available regarding the
environmental impact of the Company’s operations and products; (ii) changes in environmental regulations or
enforcement policies, including efforts to recover natural resource damages; (iii) new and evolving analytical and
remediation techniques; (iv) success in allocating liability to other potentially responsible parties; and (v) the
financial viability of other potentially responsible parties and third-party indemnitors.
Item 4. Submission of Matters to a Vote of Security Holders.
None in the quarter ended December 31, 2004.
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities.
Equity compensation plans’ information is incorporated by reference from Part III, Item 12, Security Ownership of
Certain Beneficial Owners and Management, of this document, and should be considered an integral part of Item 5. At
January 31, 2005, there were approximately 126,117 shareholders of record. 3M’s stock is listed on the New York
Stock Exchange, Inc. (NYSE), Pacific Exchange, Inc., Chicago Stock Exchange, Inc., and the SWX Swiss Exchange.
Cash dividends declared and paid totaled $.36 per share for each quarter of 2004, and $.33 per share for each
quarter of 2003. Stock price comparisons follow:
Stock price comparisons (NYSE composite transactions)
(Per share amounts)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter Year
2004 High $86.20 $90.29 $90.11 $83.03 $90.29
2004 Low 74.35 80.90 77.20 73.31 73.31
2003 High $67.48 $68.38 $72.85 $85.40 $85.40
2003 Low 59.73 60.26 63.40 69.80 59.73