3M 2006 Annual Report Download - page 70

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
shares for issuance under the MSOP in the form of management stock options, restricted stock, restricted stock units
and stock appreciation rights. Under the plan, the Company has principally issued stock options to management
employees that are granted at market value on the date of grant. In addition to grants to management employees, the
Company makes other minor stock option grants to employees, for which vesting terms and option lives are not
substantially different, and also makes minor grants of restricted stock units and other stock-based grants. Refer to
Note 16 for additional information concerning the MSOP.
In May 1997, shareholders approved 30 million shares foULVVXDQFHXQGHUWKH&RPSDQ\¶V*(6337KH&RPSDQ\
UHFRJQL]HGFRPSHQVDWLRQH[SHQVHIRU*(663RSWLRQVRI$19 million in 2006, $19 million in 2005, and $21 million in
5HIHUWR1RWHIRUDGGLWLRQDOLQIRUPDWLRQFRQFHUQLQJWKH*(633
7KHLPSDFWRIDGRSWLQJ6)$61R5RQWKH&RPSDQ\VQHWLQcome is consistent with the pro forma disclosures
provided in previous financial statemHQWV$PRXQWVSUHYLRXVO\UHSRUWHGDQGDPRXQWVUHYLVHGSHU6)$61R5IRU
total year 2005 and 2004 are as follows:
2005 2004
(Millions, except per share amounts) Previously
Reported
Revised per
6)$61R
123R
Previously
Reported
Revised per
6)$61R5
Net Sales $21,167 $21,167 $20,011 $20,011
Cost of sales 10,381 10,408 9,958 10,002
Selling, general and administrative
expenses 4,535 4,631 4,281 4,437
Research, development and related
expenses 1,242 1,274 1,194 1,246
Operating Income 5,009 4,854 4,578 4,326
Interest expense and income 26 26 23 23
Income before income taxes, minority
interest and cumulative effect of
accounting change 4,983 4,828 4,555 4,303
Provision for income taxes 1,694 1,627 1,503 1,400
Minority interest 55 55 62 62
Income before cumulative effect of
accounting change 3,234 3,146 2,990 2,841
Cumulative effect of accounting change (35) (35) - -
Net income $ 3,199 $ 3,111 $ 2,990 $ 2,841
(DUQLQJVSHUVKDUH±EDVLF $ 4.18 $ 4.07 $ 3.83 $ 3.64
(DUQLQJVSHUVKDUH±GLOXWHG $ 4.12 $ 3.98 $ 3.75 $ 3.56
Net cash provided by operating activities $ 4,258 $ 4,204 $ 4,282 $ 4,228
Net cash used in financing activities $(3,679) $ (3,625) $(2,534) $(2,480)
7KHIROORZLQJWDEOHGHWDLOVWKHLPSDFWRIWKHPRGLILHGUHtrospective application of 6)$61R5RQSUHYLRXVO\
reported amounts at December 31, 2005:
2005
(Millions, except per share amounts)
Previously
Reported
Revised
SHU6)
S
123(R)
Long-term deferred tax asset $ 110 $ 138
7RWDODVVHWV   
Long-term deferred tax liability 1,609 1,342
7RWDOOLDELOLWLHV   
$GGLWLRQDOSDLGLQFDSLWDO  
Retained earnings 17,358 15,715
7RWDOVWRFNKROGHUV¶HTXLW\   
7RWDOOLDELOLWLHVDQGVWRFNKROGHUV¶HTXLW\   