3M 2007 Annual Report Download - page 17

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11
Item 6. Selected Financial Data.
(Dollars in millions, except per share amounts) 2007 2006 2005 2004 2003
Years ended December 31:
Net sales $24,462 $22,923 $21,167 $20,011 $18,232
Income before cumulative effect of accounting change 4,096 3,851 3,146 2,841 2,286
Per share of common stock:
Income before cumulative effect of
accounting change – basic 5.70 5.15 4.11 3.64 2.92
Income before cumulative effect of
accounting change – diluted 5.60 5.06 4.03 3.56 2.88
Cash dividends declared and paid 1.92 1.84 1.68 1.44 1.32
At December 31:
Total assets $24,694 $21,294 $20,541 $20,723 $17,612
Long-term debt (excluding portion due within
one year) and long-term capital lease obligations 4,088 1,112 1,368 798 1,805
The above income and earnings per share information exclude a cumulative effect of accounting change in 2005
($35 million, or 5 cents per diluted share). Refer to Note 1 for more detail.
2007 results included net gains that increased operating income by $681 million and net income by $448 million. 2007
included gains related to the sale of businesses ($849 million pre-tax, $550 million after-tax) and a gain on sale of real
estate ($52 million pre-tax, $37 million after-tax), which were partially offset by increases in environmental liabilities ($134
million pre-tax, $83 million after-tax), restructuring actions ($41 million pre-tax, $27 million after-tax), and other exit
activities ($45 million pre-tax, $29 million after-tax). 2006 results included net gains that increased operating income by
$523 million and net income by $438 million. 2006 included net benefits from gains related to the sale of certain
portions of 3M’s branded pharmaceuticals business ($1.074 billion pre-tax, $674 million after-tax) and favorable
income tax adjustments ($149 million), which were partially offset by restructuring actions ($403 million pre-tax, $257
million after-tax), acquired in-process research and development expenses ($95 million pre-tax and after-tax), settlement
costs of a previously disclosed antitrust class action ($40 million pre-tax, $25 million after-tax), and environmental
obligations related to the pharmaceuticals business ($13 million pre-tax, $8 million after-tax). 2005 results included
charges that reduced net income by $75 million. This related to a tax liability resulting from 3M’s reinvestment of
approximately $1.7 billion of foreign earnings in 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).