3M 2005 Annual Report Download - page 38

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12
Item 6. Selected Financial Data.
(Dollars in millions, except per share amounts) 2005 2004 2003 2002 2001
Years ended December 31:
Net sales $21,167 $20,011 $18,232 $16,332 $16,054
Income before cumulative effect of accounting change 3,234 2,990 2,403 1,974 1,430
Per share of common stock:
Income before cumulative effect of
accounting change – basic 4.23 3.83 3.07 2.53 1.81
Income before cumulative effect of
accounting change – diluted 4.16 3.75 3.02 2.50 1.79
Cash dividends declared and paid 1.68 1.44 1.32 1.24 1.20
At December 31:
Total assets $20,513 $20,708 $17,600 $15,329 $14,606
Long-term debt (excluding portion due within
one year) and long-term capital lease obligations 1,368 798 1,805 2,142 1,520
The above income and earnings per share information exclude a cumulative effect of accounting change in 2005
($35 million, or 4 cents per diluted share). Effective January 1, 2006 the Company adopted Statement of Financial
Accounting Standards No. 123 (revised 2004) and will use the modified retrospective method to adjust all prior
periods to give effect to the fair-value based method of accounting for stock options. Refer to Note 1 to the
Consolidated Financial Statements for more detail on these two items.
As discussed in the Notes to Consolidated Financial Statements, 2005 results included charges that reduced net
income by $75 million. This relates to a tax liability resulting from 3M’s reinvestment of approximately $1.8 billion of
foreign earnings into the United States pursuant to the repatriation provisions of the American Jobs Creation Act of
2004. 2003 results included charges related to an adverse ruling in a lawsuit filed against 3M in 1997 by LePage’s
Inc. that reduced operating income by $93 million ($58 million after tax).
2002 charges in connection with 3M’s 2001/2002 restructuring plan reduced operating income by $202 million
($108 million after tax and minority interest). 2001 includes net losses that reduced operating income by $504 million
($312 million after tax and minority interest), principally related to charges in connection with 3M’s 2001/2002
restructuring plan, acquisition-related charges, a reversal of a 1999 litigation accrual, and a net gain related to the
sale of available-for-sale equity securities, partially offset by the write-down of available-for-sale equity securities.