Document gDYoOVD2nYmBBE09NN3jwv0OQ

zane 1/13/2018 Migsohcivesadg OGatTIOOIOUSEHIAOIO20T80A_HSOk om https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm `T11i00b-lKKeo1f1C2ao111m1-2e-02s6006011_01k1h.ht0tmmk 1100-KK. Table of Contents UUNNIITTEEDD SSTTAATTEESS SSEECCUURRIITTIIEESS AANNDD`WasEEhinXXgtCoCn,HHD.CAA. 2NN05GG49 EE CCOOMMMMISISSSIIOONN Washington, D.C. 20549 FFOORRMM 1100--KK AANNNNUUAALL RREEPPSOOECRRUTTRPPIUTUIRRESSSUUAEANNXTTCHTTAOONSSGEEECCTTAIICOOTNNO11F33 OO19RR341155((dd)) OOFF TTHHEE SEFCoUr RtheITfiIsEcaSl yEeaXrCenHdAedNDeGcEemAbeCrT31,O2F0110934 For thCeofmismciasl syieaornefnldeeudmDbeecerm1b3e2r8351, 2010 Commission file number 1-3285 33MM CCOOMMPPAANNYY SStatatteeooff IInnccoorrppoorraattiioonn:: DDeellaawwaarree IL.RR.,S.EEmmplpoloyyeerr dIdeenntitiffcicaattiioonnNNoo,. 4411-00141777777S5 Principal excutive offices: 3M Ceater, St. Pau, Minnesota $5144 Principal Telephone executive offices: a3mMbeCre:nt(e6r5,1S)t7.3P3a-u1l1,1M0 innesota 55144 `SECURITIES REGISTTEeRleEpDhoPneUnuRmSbeUr:A(6NT5O1T) 7S3E3C-1T1I10ON 120) OF THE ACT: SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: Tioftcaech class NNaaommneewohofifccehaaccrhhegeeixxsccthehraaenndggee "Common Sock,Par Value $01 er Share Title of each class Common Stock, Par Value $.01 Per Share NNCeehwwiYcYaoongororkwkSShSttiotocochcckkkrEEeExxgxccichshhtaaenanrnggeegde,e,,IITnnco.c. Chicago Stock Exchange, Inc. NNootete:: TThhee cco`oSmmcmmcuoornntisssttoroeccgkkioosftfethhreeedpRReuegsgiiissattrnraatnntttoisslsasclstoottnrraa1dd2ee(ddg)oonftothnthheeeSSAWWctXX: NSSowwviisesss EExxcchhaannggee. dicbay ctheeck markif thSeecReugriitsitersarnetgisiwsteerleld-pkunrsouwannt stoeasseocntieodns12(ge) aosfdtrehfeiAn,ecdt:iNnoRnuele 405 ofthe Secure Act, YYeas [] NoO Indicate by check mark if the Registrant is a well-known seasoned issuer, as def'med in Rule 405 of the Securities Act. No [] Ye O IINnnddoiiccaatteebbyychcheecckk mmaarrkkiifftthhe RReeggiissttrraanntt iiss nnoott rreeqquuiirreedd t0offiillee rreeppoorrttss ppuurrssuuaanntt ttoo SSeeccttiioonn 1133oor SSeeccttiioonn 1155(0()do)f the of the AAcc.t. Yes [] InNdioca[t]e by checkmarkwhetherthe Registrant (1) has filed llrepr rived be ldbySesion13or15(0)ofthe `sSSueecccuhurirtitioieerssIsEnE)dxx,iccchaahnataednn(bgg2yee)AcAchbcatetscookbffom11ca99nr33sk44ubwddjuuherreciittnnhgget0rshthteuhecepphrRrfeeleccgieednidsigitnnrgargn1eqt12u2(1mimr)oehomannestnhsftsislfo(eodorfatfolohrlerrspesuaupcscohhtrt9sssh0hrreokdqrtcaueyrirrpsepe.derYritieooosddbeht@hfaailtettdhhNeeboRyR0eSegeicstgtiroannit1ww3saaossrrtr1eeq5qru(udii)rraeeoddfonttohefftillee IsnutcehrarcetpiovIdrentsdDi)ia,ctaaactnedFbbiay(ly2ce)tchrhheeaeqecscukikbrmemeaedarnrkksbuwwehbehjseteuchttbhemteoirttsthehuedcrhareegnfgiildisistntprrgoaasnrnetttqehhduaaispsrsuesurmubsbemunaminttsittttefoeoddreRetlhleelecctptr4raoo0snn5tiic9coa0afllRlldyyeayaagsnnu.ddlYppaooestssttiee[Sddo]-noTonndNitutosrscicn[oog]rrphoeprarptreseWWcetebedebinssgiitte1,,2fimfonannyty,h, secvvoerrryy forsuchshorterperiodtht the registrantwas requiredfo submit andpos uchfle). Yes No 0 Interactive Data File required to be submitted and posted pursuant to Rule 405 ofRegulation S-T during for such shorter period that the registrant was required to submit and post such files). Yes [] No [] the preceding 12 months (or will not bIIendnciocndattaieibnbcyeyda,hchteoecteckhkemmbaearsrkktoiifffddRiiseclgsosacurnelo'ofofkddseneloliiawnnlqqeruudeegennett,ffileinerdrsseppiuuirirsuvsaeuntporttooxIlyteeommr 4i4n00f5oorofmRfaeRtgieuoglnualstattiaiotoennmeS-n-KtKs iiissnnncoootrtpccooronanttaenidnebedydreheererierinnn,caaennddin Partwill Part 1of this Form 10-KoranyamendfomtheisFnortm 10... not be contained, to the best of Registrant's knowledge, in definitive III of this Form 10-K or any amendment to this Form 10-K. [] proxy or information statements incorporated by reference in smaller reIIpnnoddriitcciaanttgeebbcyoycmhcpheaecncykk.mSmaearerkktwwhhehedetthehefenritthoheensRRoeegfgiis"stltrraaarnngtet isascaacerllagerrgeaeatceacdcecflelelerera,attee"ddsfefiiclleelr,,eaaanntdaacclcceellreerraaattneeddd"ffsiimlleaerrl,laennroornne--paaocrccteielnleegraacttoeeddmpflailene,ry,"oorirnaa Rule 1252 ofthe smaller reporting Rule 12b-2 of the Exchange Act. company. See the Exchange Act. def'mitions of"large accelerated filer", "accelerated filer" and "smaller reporting company" in LaLragrgee saecccelleeraattedd fir1 filer [] Accelerated ler 0 Accelerated filer[] (NNDooonnno--atsccccoehcleecerkartefeddalfsilmeearlr0l[]er SmSamlallelerrrreeppoortritinnggccoommppaannyy 0[] reporting company) (Do not check if a smaller reporting company) Idicateby heckmarkwhethertheRegistrantsshell company(asdefined in Rule 120-2 of he Ach. Yes No 8 Indicate by check mark whether the Registrant is a she~~ c~mpany (as def-med in Rule ~2b-2 ~fthe Act). Yes [] No [] andshar"eTTshhueeiasagtggagrnerdegiganatgtee,mwmaarasrkkaeept pvvralouaxeoiofmflvavotottu$ieinn6lgg2ys.st6toobccikktihhoeenllddabsboyynfnoJonnaaanfffuiliaiatrtesysoo3f1f,2thh01eeR(Rpeepgsrisotarxain,mt,tcclooymmp$pu5ut6t.ee3ddbbbyiyleriefnfreearesnoncfceJtuonetohth3eec0cl,ol2os0isn1ing0g,ptprhriiecc.ee and shares outstanding, was approximately $62.6 billion as of January 31,2011 (approximately $56.3 billion as of June 30, 2010, the Pigs eihcesodgroTADOIOSHIOOTASA-2060_1Ok Mo ne https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 1/114 7157588..00000011 EExxhhiibbiitt 11775588 State of Minnesota v. 3M Co., Court File No. 27-CV-10-28862 zane Migsohcivesadg OGoTt IOOIOUSEHIAOIO20T80A_HSOk Hom 1/1a3s/2t0b18usidnayeofstse Registrant'mostrecenlycompletedscond quater). https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm last business day ofthe `Shares of Registrant's most rceocemnmtloyncsotmocpkloeutesdtasnedcionngd qatuaJratenur)a.ry 31, 2011: 711 05.78. Shares DOCUMENTS INCORPORATED BY of common stock outstanding at January REFERENCE 31, 2011: 711,805,978. fiscal yeaPPr-aeartnsdroooftfftDthhseeecCCeoommmbpeapnra3ny1y','ss2dd0e1ef0fii)nniittfDiivovOeerCpptrrUooaxxMynyEassNltaatTtmeeSemmeeIentNntitCn((OttoooRbbbPeeOffhilRleeelAdddTppouEunrrDsMsuaaBuynaY1tnf0tRoto,ERR2eF0eg1gEu1ulR,laaEattriiNeoonnCiEn11c44oAArpwwoiritaththeiidnn1b12y200rdedafayeyrsseanaclfeteirrntRRehegigisissttrraanntt''ss Form fiscal y1e0a.rK-einndroesfpDonesceemtobeParr3t1i,2,0e10r)sfor10i,ts1a,n1n2u,al3meaentdin1g4,to be held on May 10, 2011, are incorporated by reference in this Form 10-K in response to Part "The IbIIl, eItoemfcsTToh1nhi0tiss,end1dto1os,cciu1u2mm,eeet1nn3tfto(a(renetxdxhcua1ldu4nipd. niangggeee2xx.hTiibhsits)e)xcchooinnbttiaatiinnnssd11e22x44beppgaaiggneesss..onpage 121. The table of contents is set forth onpage 2. The exhibit index begins on page 121. `TTiabblleeooffCCoomnteensts: 33MFMOCCROOMMMP1PA0A-NKNY.Y. Forthe Year EFnOdReM dDe1c0-eKmber31,2010 For the Year Ended December 31, 2010 `TABLEOF CONTENTS TABLE OF CONTENTS ARI PART I EMI ITEM 1 IEMA ITEM 1A DITEEMMI1RB MITEEM M?2 EMI ITEM 3 MITEEM M44 PART PART II TEMS ITEM 5 TITEEM MG6 EMT ITEM 7 IEMA ITEM 7A OITEEM MS8 mIeTEmMe9 TEMA ITEM 9A IITTEEMMS9BB ARTI PART III IEM10 ITEM 10 BBuussiinneesss RRiisskkFFaaccttoorns UUnrnesoslvedoSSatlaffffCCvoommmemenedtnsts PPrrooppeerrttiieess LLeeaglal PPrroocceeetdiinnggss RRemeovmedaoannddvRReeesserruvdsedd EqulySuri: Market for Registrant's Equity Securities Common Equity, Related Stockholder Matters and Issuer Purchases of SSoeelcectteedd FFiionuaoncciiaallDDaattaa Management's Discussion and Analysis of Financial Condition and Results of Operations QQuaunatnittiatattiivveesaonddOQuaulalaittaitviveeDDisicslcolossuurreessAAbboouuttMMarakrksetRRiiskk FSFiinnsaonacciiall SttatemeentsmaannddSeSuupppplnleemmenenttatarryyDsDaattaa IInnddeesxttoo FFiinnaanncciiaallSSitaetemmeenntss Changes in and Disagreements with Accountants on Accounting and Financial Disclosure CConotronlsatannddrPPrrooocceeldduursreess OtOhtheerrIInnffoorrmmaattiioonn DiDrisretcotrorss..EExxeeectuitivveeOOfffificceerrss aannddCCoroprpoorraatteeGGoosveerrmnaannccse: Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 11775588..00000022 eBeegsr Beginning Page a 10 10 1 1 110 212 n13 40 a41 a41 p1i1e7d u11z7 u11m7 us118 ame2/114 zane Migsohcivesadg Gat OTIOOIOSEHIAOI O20T80A_HSOk hom 1/13/2018 https://www.sec.gov/Archives/edgar/data/66740/O00110465911007845/a11-2060_11Ok.htm EMU East Conpenstion us ITEM 11 Executive Compensation 118 mM12 ITEM 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder "Mates ne Matters 119 mM1 ITEM 13 Certain Relationships and Related Transactions, and Director Independence i1t19} IEMs ITEM 14 PAPrirninccico~aallcAccoountuingFFneesessiaannddSnSeerrvigiecess i1t19} PPAIARRTTLEIIVMY IS Exhibits Financia SutementSchedales m ITEM 15 Exhibits, Financial Statement Schedules 120 Indes to Exh Index to Exhibits F12E1 2 `TabTleoofifCCoolmneteesnt.s ANNUALR33EMMPCCOOORMMTPOPAANNNFYYORM 10K FFoAorNrtNthhUeeAYeLeaarRr EEEnPnPdOdeAeRddRTDTDOIeecNecmFebOeRmr3M31b1,,12e2000-1K1r00 PART I HemItem 11.. BBuussiinneessss,. t33iMMckeCCrosmyompbaonlymwiwaasMps iMinnMccao.orrppAoonrsraatuteesydddnihne1r19e92i2n99,tuuhnneddeetrretrthhmee"ll3aawMw"ssooofrftt"hhCeeoSSmstpattaenooyff"DDienelcallwudaearse 3tooMccoConnottmiinpnuuaeencoyppeaernraaditiiootnsnsssbubebegsgiuudnniiienns11u99n00l22e..sTTshhteehCeCocomompnatpenaxynt'y'ss ticker symbol is MMM. As used herein, the term "3M" or "Company" includes 3M Company and its subsidiaries unless the context inSdtiactaetmeesnotthienrweisme,&.In tis document,foranyreferencefos Ne | through Not 19,refetro he Notes fo Consolidated Financial indicates otherwise. In this document, for any references to Note 1 through Note 19, refer to the Notes to Consolidated Financial Statements in Item 8. Avalabe Tformation Available Information "iTTnhhceelSuSdEEiCnCgmmheaaiCnoitamnipnastnaaawywe,ibeshbniastitsteetfthlhatetcecoocnntttaariinonssirrceepapwroltirltsts,y,pphrrooexxSyyEaaCn.nddTiihnnffooprrmmuaabttiiloocnniasscntaaatbetameiennntastn,uysannd,ddocootuthhmeeerrnfitnosfromramattatitihooennCrroeemggpaarraddniinynggiislsuesuewesirts,,h the SSiSneEEccCCluudaatrithnhegttptpnh:e/d/wwCEwoxmwcshp.saaenncyg.g,geCotohvo.a.mtTTmfhhiileeesCCeilooeommcnptp(raoaSnnnEyiycCafi)illlleyueswnasidnutnheauhtarlhelerrSeSeeppEocoCrurt.tsrsT,,eqhqseuEapurutexbrlaliyccrrcteehappAnoorceaortttbss,otn,lappfinrgr1oya9xyne3yy4ssdt(saoEetcxemumcemhenaentnntsgstseaatnAhdcdatto)bt.thheTeerhrCdedooopmcucbuplumainmceynmetfsainwlywetisiettswhsidttthhhneethde c2cS0oe5pc4yu5aor.aintnTiyeyhmsepmapatnaetdreuyirEiaaxlblcssmhttaalhnayagtbeihthaeCeicCoCmonommmipnipsfaasoninroymynafti(iiSlleoeEsnCwwoi)nitutthhnhdttehheoeerpeStShrEEaeCtCaSioeatncttuthohrfeiettihSSeeEsEPCECu'xb'ssclhiPPuaubnblgRliieeccfAReRreceeftfneeocrrfeeeRn1n9ccoee3o4RRm(oobEooxymmchcaaaattnl11gl00ei00nAFFhcetSS).teSrTetEeh,Cte, NNpatuE.Eb1..l-,ic3WW0am0asashShyiEinCrng.egi0ato3don3na,0,n.DDd..CC.. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. `33QMWuaraatlsesroolymmaRakkeeepssoaarvvtaaoiisnlaabbFlloeerffmreee1o0o-fQf,cchhCaaurrrggreeentthtrroRouueggphhoittssrwowtenbeFsbiositrteem((5h-thKtp,t:/a/npindv,niefsvtoperp3.l3scMMatcb.cloooemmr,))atmthhceenCdCoimommpeapnnasyn'tyo'sshAAonnsnauelapl oRRerepspeofrirtlteoodnnaFFoofrrmmmis11h00--eKKd,, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and, if applicable, amendments to those reports filed or furnished ptutre,suthaenStECh.eExchangeActssoon sresonably practicableafr th Companylctonicaly fle suchmateri]wit,o umishes pursuant to the Exchange Act as soon as reasonably practicable after the Company electronically files such material with, or furnishes it to, the SEC. General General 33DMMiis aasddniipvvdeeGrrlsrsiaiffpiiaheedidcyttsee;cchhCnnooonllsoogugyymcecoromampnpadannOyywfwicti;thhaSaaggflleootbbyaalSleppcrrueerssieetnnyccaeeniidnn PtthhreeotffeooclltlliooowwniiSnneggrvbbiuucsseiisnn;eessassenesds::lIIenncddtuursstotrriaiaanlldaaCnnoddmTTmruraannnisscppaootrriatoatntiisoo.nn;;3HHMeeaailslttahhmCCoaanrrge,; tmtDhaeiesnpllueelaafayddaiiancnnggtdmumGraaarinanupnfdghaicucmtsau;rfrkeCercotsnioontsffgup,pmrrr1oeo2dredduuacncarttdessfOfsoofurrfbimmcjeca;tanSyoaonfocfeftoyyttmhh,peeeStmmeicatuairrkoitenyrtsfaionkttdmsspceePrvrrvoeotedstsue..ccMMttiosoosnmstatSn33euMrMfvaipcpcerrtosou;ddruuaecncdttdassnEiindnlevvscoootlllrvvodeeeabxenypxdeptrCethrioetsimrseetmeiiunnhpnprrircoooalddtouiuogccnittsad.dlee3yvvMleoolroipispreamenmtneetond,nt,g companies. manufacturing companies. and marketing, and are subject to competition from products manufactured and sold by other technologically oriented A7A,tt1DD0ee2cceeemmmpbbleeory33e11,d, 22i00n11e0m0,a,tttihhoeenCCaololmm,ppaannyyeemmppllooyyeedd8800,,005577 ppeeooppllee ((fuullll-t-immeeeeqquuiivvaalleennsts)),,wwiitthh 3322,,995555 eemmppllooyyeedd inntthhee UUnniitteedd SSttaatteess aanndd 47,102 employed internationally. Business Segments Business Segments Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo ame https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_11Ok.htm 3/114 11775588..00000033 zane Migs heeOTdIOOIOUSEHIOAIO2T080A_HSOk om 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm As discuss in Note 17 to the Consolidated Financial Steen, fev in he fsquaroft2e01r0, 3Mmade ran product As discussed in Note 17 to the Consolidated Financial Statements, effective in the first quarter of 2010, 3M made certain product moves betwen ibusiness segments i tscontinuing fortto drive growthby ligingbsincses around marankdcuesttomesr. moves between its business segments in its continuing effort to drive growth by aligning businesses around markets and customers. Seqpnent infomation present bererectth impactofthese changes foralprods presented. Segment information presented herein reflects the impact of these changes for all periods presented. Gr33aMVphccioocnnsttiinnCuuoeesns sttooummmearnsaanged nitOtssfofopipaecer;raSattigaioonfnss,iinSnesciiuxxrcioptpeyersaratntiidnngPgrbobutusesicitnnieeossnssSsseeerggmmveeennsttss::nIIndndduuEsslttcrriiiaraloaasnnndddTTCrraanonsspmpoormtrtaatutiioonnn;;iHHeceaa3llattMhhtCCsaairrxe;ob;DuDinssiipsslnpaelay.syasanndd psGsrerogaevmpihedginicntssg;mbbfeCrorfiieonfnnggisncuotomiggteeeenbrtthseaenrsrdhccaOorimffnoimgoceof;nmbSouorasrfmierenteylela,asottsSeeedrdc3en3suMoM ruitryttceeeacscnh.hdnnTooPhllroooeggtseiiecesst,,ieoegennmnehShnaeatnrsvcnhiicncaegivtsent;hhwgaeonrdddleeEdvvweleelilcoodtppreommreaeennnstpdtoooCnffsoiminmbonivmolatvutyaniftiivocveraetvippoirrnorosdda.uul3ccltMtyssa'saalndlsdixs3seMberurvvpsiriiccnoeeedsssuascantnddles. CspCeereotgrvtmiaiedinnnisntsvg.mafFlaoillrlnabebnufucfssiiiciannileeesnsisstneefsssoharaamnrnaiddntgiIloabonb-af-ssbnppudoosonnitnsshoeoesrrsreedddrpiepssrrcoooluddorusucucecrsttes.,s,TaaehswewseeiellslenaagtsmovvaeaMnrr'itiososuhssabcvcuoeosrripwpnooorerrasaltdtseewesaigdsmsseeesnrtsetassanpnnoddendxesixpobpepieelnirnstaysetesfiso,o,rnaarsvreiirnontumotaatljlaayotbtrraiulgbletu3otMgerdoaptptorhohitdhceueccbbtususlissininneaeser.ses.ss psergovmiednetds.iFntinhaenNcoiatlesintfooCromnsatoiloindaantdedotFhienradnicsicaloSstuarteesmreenltast.ing to 3M's business segments and operations in major geographic areas are provided in the Notes to Consolidated Financial Statements. pIIannpddeuurssattrrnaialdlapanandcdkaTTgrriaannngss,ppoforortoaadtiiaoonnndBBbueusvsieinnreeassgss:e:,TTehlheeectIIrnondnuidsctusr,isaalusatnnoddmoTTtrriaavnnessppoororirtgtaaitntiiaoolnnessqeeuggirmpnmeeennntttsseemrravvneeussfaacbbtrruooraaeddrrra(anOnggEeeMo)offammnardakrakeutetstos,,mossutccihhveaassesarppmppalliirasknneccet,, (ap(aadauhtpetoeosbribovaoenddsdy,ypsssahphcoeokippaassglaitannyngddm,rarfteotetoardii.la)a.ln,IIdnnlddbuauesvsttrteiririaoaalglnaea,pndrdeoTldeTrucarctanrtnosssnp,poiecornsra,tetaaigtuioyotnconpompnrotroortdidouvlucecptotrssroidignuciccntllausld,eeecqltauoapisppueemrs,s,eaanswtywimsidtdaeeenmvuvsfaaafrcrioetuytpyreoerorfsfc(ocOonoaaEaltMteehddy)gaaainnneddnneanouopntrno-o-mwwduooocvtvitevesennacaabofbrtureaasrssmiiivvcaeerssk,,et systems products, and adhesives, specialty materials, systems products, and filtration products, energy control products, closure systems for personal hygiene products, acoustic 3 TTableiooffCCloomneterenst:s cVcoeomhmipceplenosen.ennttssaannddpprroodduuccttss thhaattaarreeuueseddiinntthheemmaannuuffacctturre,,rreeppaaiiraannddmmaianintteennaanncceeooff auuttoommtoitivve,,mmarariinn,e, aaiirrccrraafftl aannddssppeecciiaallttyy vehicles. FiMMlaajajomorerniintnddTuuasstptrreiiaaalnl dpprrooSddcuuocctttscshiincPlnuacdkecavvgiiinnlnyylgl,,Tuppaooleldyy;eespsettaeecrrk,fafogoiiillnaganneddquspipepecmiceaianlltlty;y 3iinndduMussttrrViiaaHll ttBaappTMeeBssonanndddinaagddhhTeesasipivveeesss;;; ccSoconoldtccuhhcivMMea,saklsioknwisgngiTfTiipacep,ee,eSSncecroogtiycc,hhhot msFmueierllalft,ma,csseeppnrfrtaaTyyaaiapnneddanssnattdrnruiuSdcctctuguosrrrtaacillhnhdaaiddnhhPgieeassscbiikvrvnaeaegsss;iingrrvgeesccTlloaoosrpsaaetbb;hllepeeianfcfadaksusattsegetnnirneeirgrassl;;eqmlaauabbriepeklmletmme.na3tta;eMr3i!tavPlruTsrMfeifoofVirrcdHdautBuriirTaoaMnbblalneBeeggo.lo(onopoddrsdinessvg,;iaaTonnuaddspleccsyoo;sratcteeeofddne,,drnnueoocdnmtitwovvs oeoC,vvleeUonnwNaasnnuOddrfmmaiIcinccecorosoerinsptreorurrugcscyttte,uudhrr)eeo,ddt pipsnurdorufrvsaitcdreoeiasflamapvcricsooohdmimiupncrpgtdarseahhneneednnsgdsisrivvieneedllifininnlgeeooarofbofrlffaaiisllsitvrrtaaeottsmiooefnnorrpsprftrhoooedrdusuicncetdtassussfftoortrriatutlhhbeemssesaapernkapdreaatrg.atti3uioMoenn,,sPccullnraairrfiieiffcniiagccitaainttoieionson;nInaaacnnn.ddd(epppnruuegrviirfniioiecueafsrtliiiyoncngroeaoifftfefdrfirsldeuo.disdntIsonaaanansddddgCigatUasisoeNenss,O.. hOOIitntshchseoeerrrpgomreantetd), pppinrrrdoootuvveisicddttreeiissaoln3SdpMurMroTiPMdnugScSdtccseoostictnchrcthuliucnitdtTnievMTMfelwWuWeioanrinotddeholoeawwsrtoFcFmioillnmemdrfisfooofrnrobsrb,uuseiilladiloisnn,rggtuess;besS3sMyMaTsnPMtdeUUgallftsorakraepSStesaarffiseneottneyyanalagnnihdndySegSsei;ececuanurneriditpteyyrnWoWgdiiuinncnedtde;ooriwwanngFdFsiiflllcmumifodfsoou.rpItpnrrooaypdpedeerritttiyysonaa,nnpddtrhoppidseeurrcsssteoosgnn.maallent protection during destructive weather conditions; closure systems for personal hygiene products; and acoustic systems products. MrMaaajpjooirrcttrrsaannbssrppaoorstritaoatntii.oornnesppirrsooaddnuutccfttissliimnsnc:clmluuaddseekiiinnnssuugllaaattipioosnn:ccoofrmeppononcneerenttsns,,diinnaccllpuusddiinonggrccaootmmapcophnoiennnegtnnstasmffoeorprlccaaatttaealsly,yttiiiccmcc,oonmnvvaeekrrtiteenrrgss;s,ffuunncccttriiooonnnaalplaaanncnlddsddaeeccnoodrraattiivvee cIgcaanrrarapppdeehdttiiiicnntsggo;;;nac,cboo3raatMtseeiod,pn,nr-noorvoeninswdiwesostovavpneeatninfniatalmnnfdds;mmmiiiccarrsooksasisnttnrrguductcatdthupeureaerslde;iifffnaiignssitpsehnrhnioiendnruggscgaaatnnnsdd,d itgganrrpciinelnsduidifnnioggnrgaaabbttrracaacosshmiivpivnelegse;;tnessattmrrsuuyeccstpttuulraeraatmolelsfaa,ddctbhrleieemssaiin,vvemeerssso;;,ldaadnnineddgososi,ethnienrgrt,sesprppieooeclrciiiapsalahltnteyyse,lmmswaaaattnexedrerisails.. and the products. In addition, 3M provides and other products. paint fmishing and detailing products, including a complete system of cleaners, dressings, polishes, waxes oHHreteahaloltdthhoCnCtaairrceeprBBauucstsiiinnteiesossnse::rsTT,hheeanHHdeehaatelthhalCCaairrneefsoseregmgammteienontntssseeyrrvvneesssm.maraPkrrkeoetdtsustcttahsatatnnindccslueedrevmmieseddipirccoaavlicldlieinvdiectsso aaennsddehhaoonssdppiitttaallhs,,rpphhamararmrmakceaetcusetiuintcicacllasl,s,dmdeenedtniatacllalaanndd oaoarnntrtddhhsoosdudogrongntitnciiacclpprssruuoappdcpuptliclitiiteeosssn,,(ess0rkks7ii,annachhnaeedraalehlt)tehhablaaetnahdlditnihinfnoiffenremcfcttoiairotominnaoptprniersoevynvesnesttneyimtsiotosnen.mpPspr,rroooadddnuuucdccttotsss,o,adiinnnsdhhaaafslleeaatrttvyiioiocpnnaersoadndpudrcorttvrsaai.ndneasdddeetrormatahlledsdreruugagndddeeolltiihvveeerrryymysaysrstkteeetmmsssi,,ndcdleeunndtealmnanedddical orthodontic products (oral care), health information systems, and food safety products. IeInncttthhreeodmmeeedsdiicacanaldl aasnnteddtshsuoursrggcioiccpaaellsaarrIeenaasis,n,f33eMcMtiiiossnapssruepuvpelpinertpoioflofSmmnieM,edmdeiaiccrraaklletatapspess,v,dadrrieeestsyionsfgs,suwiwrogouiuncnnadldcgdclrlooassp,uuerr,eempparrsoodkduuscacttnss,d, ooprrtrthheooppp,eeddaiicwccecalaslsttaiisnnggtmmaaattteeririiaaolls,n, reaealsslaesstcuuetrrrdaaonncdccoeeemspceaqqonuundiieppsnmmteetnteshtn.o,tI.sOncOtoathpdheedeisrrt.pipIrornnoo,didniuunfccetttcsthiinonfncoclupurrdetehevdedqrnruutuiggondda,eeol3ltiifMvv2eee0rrm1yy0arysr,syktse3tetesmMmsaa,sv,qsasuuruiiccerhhteyadasosAfmresiuetztrraegneritecdda-n-lcdd.doorssaepieminns,hhamaanllaeersusk,,sfutranaansndcdsodpefterpreramumptasiral,elanessstkkwiiwnnaepplrelamcaticshnhesgetssesrnaoillndiudztaitoionsn pdrdoeelelsisaistigehgndieencddgopttmoroopppdorruenecvvetenesnnt,stt.chhIrynyoppwaonodtstdh,iehtrimemoprniem,aeiiinsnanitsshouuenrrggfmioiaccutaaerllrthissaeeqlttuttsii,annrpggtsres..recDDonefent2nti0tava1lel0asa,enna3ddiMnootrratsthch,qoopdudroioornnfetetdiisccAsppirrroioozndadaunluctctwtIsosntcinhn.,ccwaluhmedieanrnreeeurssfstato,crrtaaupttrrievovrpseh,osy,flaapaddaxhhtieiessesinnivvtedewss,a,rrAftminhniioihnsdihgenisntgogialcuantnidodns paparppoopplvillisihdsaeninnsccgeesp.l.raIIotnndeduhbcceeotasanl,tskhuclriiotnnwiffonongrrsmm,saaeitmtriivoopinncreeysssyss.sit3oteenMmmmpssr,,ao33tveMMiridaeddlsse,fvepoerloeovdvpseseaanaftnneilvdtdeymomasperarpakrokledaesutntcssttssc,coptomhrmoappfueumsttaeseirkossenooiafflttwtwosaaorrtteehrffoawornrhhdhiotoeessnpapieistrtasael,lfpccorooroddipfnihongygoldaanpxnrdidoscddaeaansttdsasooccrlrlsaathsssosiidfffoiieccnsaattttiiicohoenn,, aanndd. micobilquaoligty oiffaoold. provides related consulting services. microbiological quality of food. 3M provides food safety products that make it faster and easier for food processors to test the DDcoimsipmelarsycaianapnlddGglGrraarappaphhiihyccics.sTBBhuuisssiinsneeesgssms::enTTthheencDDliospdileasyoapasntniddcGaGrplraiappmhlhiiccssosalsugetgmimoeynnesntftossreerLrvvCeessDmmealarerkcketerttossnithhcaatdtiiisnnpcclllauuyddse;eceeollmeecpctturrotonneiirccsddriisesppellnaayy,, taerrafsfff;ircesfsalafefceetttiyyveaanndd spcshholeemeeatmtiiynentgrgcefficoaorhrl ngttrrroaaanlnpssohpp,ioocrvsrtti.aasTttuiihaoolinnsysssaasefftgeeemttyyme;;sncctpoorimnmocdmmlueucerdtrisec,asialnolpggdtrricaacoppahmhlipifcciulssmtssheherseeoeptlturiiitnnivggoaancansyndfdfoessryynLss.CtteeDmmsse;;laeacnntdrmomonbiocibldileiespeilnartyeasrta; cictovivmeepssuootlleuurttiisoocnnrses,,eniinnfccilllutueddriisnn;ggrmemoflboeibclitlieeve display technology, visual systems products, and computer privacy filters. Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ane4/114 11775588..00000044 maar 1/13/2018 Moshesn GuBETe ADTOO ABs HTSTs 1208 110 https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm The pti lmbusiness provides films st srs mumrous markt sgmof theeenons play industry: 3M provides iinet The optical fill business provides films that serve numerous market segments ofthe electronic display industry. 3M provides distinct prodfour ficvemake sents, includingprocsfr: 1) LCD compute monitors, 2) LCD elev3)hicohenld dsevi,ces such products for five market segments, including products for: 1) LCD computer monitors, 2) LCD televisions, 3) hand-held devices such celr phones, 4)notebPC oanod k5 sutamotve dpe. nsr ftsyc s, 3M provides ectveshecings sdon as cellular phones, 4) notebook PCs and 5) automotive displays. In traffic safety systems, 3M provides reflective sheetings used on Highwaysin,vice Hensplats,consrcion ournedek vices, rick and thervies, nd sloprovides pavement marking highway signs, vehicle license plates, construction work-zone devices, trucks and other vehicles, and also provides pavement marking sym, Major comer graphics procs nude lm, digsignage systemssnd ited product edt produce systems. Major commercial graphics products include films, inks, digital signage systems and related products used to produce rps forvehicles, signs nd teriorsuas. Th mobile mirc solutionsbusines focuson bringing chology ote graphics for vehicles, signs and interior surfaces. The mobile interactive solutions business focuses on bringing technology to the ofc sk,tincoononbi dl chloe nan os inl commication produc hat serv he word'safi projection market, including mobile display technology in addition to its visual communication products that serve the world's office nd education markets with overhead rjctors and sparen fis, wel a cqipmen and mitesfor cctronaidc. and education markets with overhead projectors and transparency fills, as well as equipment and materials for electronic and mlimedispreseraions. I dion, isbusines cues desktopsnd tc comptreen irs htdes needs foe ght multimedia presentations. In addition, this business includes desktop and notebook computer screen filters that address needs for light contol,prvi viewing indgrection. control, privacy viewing and glare reduction. ConseOffricaBsnnsd: TheConnand Offic segmentseve makes hat nclde consume ra,offer,home Consumer and Office Business: The Consumer and Office segment serves markets that include consumer retail, office retail, home provemen,bling mic adoers makes. Prodi iis sgn ladeoffic ply procs, sony procs, improvement, building maintenance and other markets. Products in this segment include office supply products, stationery products, conrctndihoamn improvement proc (yours bncareprods, protective terial pocerd a con,tre construction and home improvement products (do-it-yourself), home care products, protective material products, certain consumer el personal safety produc, indconn elt care products. Mor consume ndoff products cludeSohbrand retail personal safety products, and consumer health care products. Major consumer and office products include Scotch brand prsuchoSead ch Mas gicTM Tape,Scoch ue Stk nd Sih Cushioned Mlle,PstProdsuucch tPosst , products, such as Scotch MagicTM Tape, Scotch Glue Stick and Scotch Cushioned Mailer; Post-it Products, such as Post-it Figs, Potit: NotPats, Flags, Post-it Note Pads, a `DibleofCoens Table of Contents PnPocosust-iiitnegLLsatbaealbingep&r&elCpCoairvoavetnerirou-gunpsp rTTapwea,oannoddedPoos-stt,4-iitsPmPhaooiprp-iunppagNN,ooCteeosnnamndadnDidissTMpAeednsberss;vccoeonnPsrsttourdcuutccittioosnnnaadnnddFhoolmmeue piempFrriovleoemfeonvrtfpprerordounccctsa,,exs7 Ccicnlooconnltdudhiditpiitonringooedsnrusus;rcbfha,oocCmme-epcreceaapreaeOrpaprtriooodSnduuaccntpsd,, wiinonocacollnuuddndd-ifiSninncgggiStsSehcciohenokgtacrhmsd-BaBTMrtreiirtFciealrsS,iScCcoooPumurrormtPaeacadntdsdosT,r,sMS:SccpoAorrdtcochhchec-BstBiivHrviestePmrSoaScdtrcuruceutbbspSaSrnpopoddonunFgcgietletssrse,,ctSeScTecoMorttccFnhhi-lBmBteerrieatserTfocMr fnMMuiricnncrarocorfe.fiesibb.aeenrrd air erCBesalsopnptidihrraapsgtrooeorn.ds;;uncccetlser,tyaOnin-C2cc0eoo0l-nn9O,ssTuuMmMmeerSrsprTeoetcnaagilleesppeearrAnssdooCnnSEaaclRlosstabcafhfreegtatayyrnpdprTdroMod(duuFucncatdtbssr,r,ieciilnnPiccerlluodudtbdeiircnnatggonSrdsssa;f)fpectryostlgeialcastsibsvseaeessnamandnadetdeh,rhiaeasalnurppignrpogodrpputrrcootttsnee;dccctttoeorrrtshsa;innaenmddraNNimneetxxeocpcnaaarnrenrTceaeMeTM-cifAAriedednehheeresss.iivvee Bandages. In July 2009, 3M acquired ACE branded (and related brands) elastic bandage, supports and thermometer product lines. Su,Security andProtection Services Busines:ToSafety,Securityand ProtoSvcssgmentsnes rodrange of Safety, Security and Protection Services Business: The Safety, Security and Protection Services segment serves a broad range of marhtkinecretase sthesft,security ndproduciviy of worker, cles ndsystems. Major produc ofeings include persons! markets that increase the safety, security and productivity ofworkers, facilities and systems. Major product offerings include personal rotctonesac,safety 4nd scary roccdo il sc solutions), lt1ndiprotenction rocfox protection products, safety and security products (including border and civil security solutions), cleaning and protection products for Commer] sablackgnd mac seoont, nsdo,f granour slheast shingle. hefourthqari of2010, commercial establishments, track and trace solutions, and roofing granules for asphalt shingles. In the fourth quarter of 2010, 3M quiredCogent n.d Aen Holding SA. Cog ne. i:podeof ng,palm, cead fs omer yesor acquired Cogent Inc. and Attenti Holdings S.A. Cogent Inc. is a provider of fmger, palm, face and iris biometric systems for overments, aw enforcement gc and coc mma cterpse. Aten Holdings SA.i. ppolfeneo poplemonioing governments, law enforcement agencies, and commercial enterprises. Attenti Holdings S.A. is a supplier ofremote people-monitoring {echaclogies for eer.mooringsppicatons nd 0 sis derear cil in marin nd cbancing he sf of technologies used for offender-monitoring applications and to assist eldercare facilities in monitoring and enhancing the safety of puns In Ape 2008, 3Macre Acro Holding Cor,the parentcompanyofAcro Technolgies rs.(raf eed 3s patients. In April 2008, 3M acquired Aearo Holding Corp., the parent company of Aearo Technologies Inc. (hereafter referred to as Aca).Acar manataendeslsspersonal precio sndcherysharin products, which expanded W's lbyo adding Aearo). Aearo manufactures and sells personal protection and energy absorbing products, which expanded 3M's platform by adding eringprotection a ell a year and llpotion pret ines 0 citing in of respiratory produc.The consumer hearing protection as well as eyewear and fall protection product lines to 3M's existing line of respiratory products. The consumer oil prionofAce'sbusiness included S's ConsaundmOfefirc business segment. The thermal sous ysisprionof retail portion ofAearo's business is included in 3M's Consumer and Office business segment. The thermal acoustic systems portion of Aca's busines icludine3Md's Induansd Ttrarnaipraiilon busines segment. Aearo's business is included in 3M's Industrial and Transportation business segment. hissentsrit clude certain macfr nnd reunsableespirtors,persons]protective cuipmen, iconic This segment's products include certain maintenance-free and reusable respirators, personal protective equipment, electronic sulle products,ln ha proce aginst counadrcvmcs ht re widelywedon spr,owesand surveillance products, fills that protect against counterfeiting, and reflective materials that are widely used on apparel, footwear and Sccmori,caning visbilty low.ight stios. TsTack 1nd TriceSolutionsbuses ies radi equercy denificaicn accessories, enhancing visibility in low-light situations. 3M's Track and Trace Solutions business utilizes radio frequency identification RFID) echology to provid roving sayof chins fom brary pttnslsheckot symto rackingpackages.Oh (RFID) technology to provide a growing array of solutions -- from library patron self-checkout systems to tracking packages. Other products ncesil onl sorbents; MP4 Thinsulate lationand SME Thinsulate Lite Lo lation; nonwoven products include spill-control sorbents; 3!vrr~ ThmsulateTM Insulation and 3!vrr~t ThinsulateTM Lite LoftTM Insulation; nonwoven sive mera or flo manienneand commer ein; foo ting ndntladclo costed inn] goufsox abrasive materials for floor maintenance and commercial cleaning; floor matting; and natural and color-coated mineral granules for phishingles In esc rer of 005,Mcompleted hesl ft High Software busines whic provided ply chin asphalt shingles. In the second quarter of2008, 3M completed the sale of its HighJump Software business which provided supply chain Craton softwar soon. execution software solutions. lect andCommunicationsBusines: TheFle tnd Communseignnct aerets hicotnrls, lon tnd Electro and Communications Business: The Electro and Communications segment serves the electrical, electronics and communications industri ncnclcica wisceria onstcton,manne nd epi orginal qipmert communications industries, including electrical utilities; electrical construction, maintenance and repair; original equipment man(OFuM)lec cticaulndsrectrniscomputers ndppconsl umelo: ne; lcammiccaailoonffsic, manufacturer (OEM) electrical and electronics; computers and peripherals; consumer electronics; telecommunications central office, ousideplatadcrys; a wll2 aerospace, iar, automaondtmeidivcael markets; with prodhuatcctolse the ficient outside plant and enterprise; as well as aerospace, military, automotive and medical markets; with products that enable the efficient nsmimion ofclecticl powerand speed he dfry of formation. Products clue conic nd croc solutions, transmission of electrical power and speed the delivery of information. Products include electronic and interconnect solutions, iinet systs, igh perfomance Tus, igemperars ad displayapes, clsommnpirocdst,dotncs microinterconnect systems, high-performance fluids, high-temperature and display tapes, telecommunications products, electrical products nd ouch sar douch ms enor. products, and touch screens and touch monitors. Motos orca HARTADODDIOEEBTOAS 2060. En https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 5/114 7157588..00000055 zane 1/13/2018 Migsohcivesadg Got OTIOOIOUSEHIAIO2O08T0_AHOSk Hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm mMMaaajjoonrreelileecccttrrooonnfiicccoaamnnpddutcelleeercrtcirhicciaaplsl,pprnrooddduucoctrtsscinonclciiluunddeecpplaaecctkkraaoggniiinncggs aaannndddiinlntuteberrrciccooanntnnienecgctctioioomnnpdudetevveiiccheeas;;rhdHiigdgihhs--kppederrrfifovorermsm:aaningccehetfileudidmsspuusseederiidnnaatnthhtdeeduisprlaey ptmtaaacppakeenassug;;fiiainnncgsstuuualrlaeanttdioinnfgigcnmmotaemtaretpcreouirnaitaenllressc,c,thiiinionpcncslu,dtdaeicninnhdgnofppolrroreegcsysos,suouprlrieeno--gsvseinendlssieiinctvgitvrmeoeanttriaacpepseecsasonaamdnnelddcurtrbeierssoiicinnnassst;i;ainagnnldceosrrmeesllpaaputtaetecded,riaethernamsrdd.sa.dr33i!sVkulMTsdMerFdiFvln eleexsx;iibhblilgeeeChk tCi-tpirerrmcciunupittesscraauurtsuteerrieeedllageeenccsdtt,rrodconeinsliip.cclay opppphatcoikhncaeagsnaionadnngdcdnoalenpelpdeteecirrnt-ortobnesanrisciccoodnddneetveveicilccteieeocssno. mTTtemhhcuiihnssnissoceeltgogimgmoyene,nsntptssrsoeyervsrvtivdeeesimsntsgthhfemerwwororoareprlicldddo''nssdneeteeplcllegtoiccoyoonmmemsnmmitnnuiilnenciscafsaittsxiopeonadncssaen,ccdooammnwpdpiaaanrnrieeieeusssswiendetitthihwnoariwknwsik.i-ddjeTeathapearrriayInyAoMt oclfafpruptrrromiodddiguueccnstt,ssufcfboemolrlefirbe.rC{oCopnotdnicurdcuatcnotdaorrcCeCopnmcopapmeporapss-cobiistatiseytieedoRRrteeseiielnnexfcfiooiosrrtmccieemnoddgup((noAAiwncCCeaCCtriRRol)ni)nsleessleey.cTcsthttreiecmcaasolpufpoocorwwhreaesrpryciscadtabebdlmleees,p,lbwwouiysittmihhneeaansntsaliinlunumfcmilixuinendudeunsma:nt-bdobauawscsheeirsddeclmmreeeseetstnaanslleammtnwaadottrritkixosu.aacttThishtsmceooc3nroMieree,r,~siit.nnAccrrlueeamasseienssum transmission capacity for existing power lines. The touch systems business includes touch screens and touch monitors. Distribution Distribution o33M bVepprrroo,dduudcctitsssaarrtesrsoloidldabnttuhhdrrtodoeuuoagglrhhersnnsuumimneerwrooiuudsseddiivssatrrriiibututytioioofnntccrhhaadannensneelilsns,,ainnccyllucidonuinnggtdridirieresecactrtlloyyutnooduusseterhrss waaonnrddidth.hMoraouunggahhgennmuuemmenertroobuuessliwwehhvoeolsleestsahaleleecrrso,,nfreeittdaaelinelecrrses,, jowooiffbtwwbhhehosrlosel,iesdsalalisleetrrmrsisba,,urrreteokttraaesiilltaeenrirsdn,, jjddgooebbaablbleeeerrrsss,,idrndeiiapssrtwrreibsibdunueattotvoriassvraeiaensntdyd--oddbeflatsrlreacrsdsoesniinntinr33M omMlaeannnddydscitoitssugppnnrtrroiiodefdusicuatccrsota--t-uos-nnMdtaa'ltcchsooyennfwpfiiododsereilnndtcc.oeenMddiaeennvvtaeehglleooepmpmaeeerddnkttethrtbrpooeluluiaggecvhhelelnsoonntdhggeaoaiscsoosgnoirfcaioidaiwetoitnonchne. with skilled marketing and sales representatives -- has contributed significantly to 3M's position in the marketplace and to its growth. s `TabTleoofifCCoolmnetreenst:s Research and Patents Research and Patents RRReesseeseeaaarrrccchhh,aadnneddvpeprlrooodpdumucectntdtdeeavvneedlloorppemlmieeenndtt eocxonpnessntiisteutsteews taanailimmeppodortr1ta.a4n3nt4tpipaalrttoooffn33M'2s'0s1ac,cit1ivv.ii2tii9ess3aanbniddllhiaoasnsbibnee2e0nn0a9mma$anaj1joor4ddi0rviv4eerrobiolffli3SoMnMi''snsss2al0les0s8ggrroowwtthh.. iRRRmeeepsssreeeaoaarvrrcccehhhd,paadrnneoddvddeduleceovvtpesemllouoepnpndmmteteanhnntetd,i,rrccseoolevvaseet,rerioidnngegaxbbpaadessniicsc$e9sss1ccit9ioeentnmtatiilifefliidlcco$rene1ss.i4aen3ar2r4c0ch1bh0ilna,lnidSod8ntt3hhi8nee m2aaip0plp1pll0liii,occnaa$tt1iiino.o2nn29o03of0fb9ssicclailiieneondntntiSiffin8iicc12aa0dd0mvvi9aalnnlacicneoedsns$iiin1nn.t24t0hh00ee48d.dbReieelvlleicoalotnpelidmneae2xn0ppt0oeo8fnmf.nsneeeeswwnaantndd pcpiormsriitmpmsar,aorwrivhileliyydciipnnhrccolliduunuddcceeltusttdeeeacccnhhodnnsiittcchsaaelalsinrsuuduppspepeosors,rtttpopirtraonolvcevidiudd$ere9dd1fbbo9ypyrm3e3piMMlalrioettoo,ncciiunulss2tt,o0om1sm0cee,rurssr$e8ww3ah8nodmhmrairasleiluinuosotsniianniigngn2eep0xxa0iisnt9ttiinasnngg;da33n$MM8a5pp1mrroomodduiulrcclittost;;niiiinnntzteoe2rra0fnn0aaatl8lcll.yqyidRudeioeevrlvaeenetdleloodpppteeexddeppp.eaanttseeennstt costs, which include costs and fees incurred to prepare, file, secure and maintain patents; and amortization of acquired patents. "TTmhheeeCrCoomoumpsapnUaynS'y.a'ssnpprdroofddoiureectitssgnaarpreeastseoontldds.arTroohuuennCddotmhhepewawonoryrl'lddsunrendsdeeerarvrvacrahirsioonuudssdetrrvaaeddleeommpsamkreksns..tTTahcheteCiCvoiomimpsgpaeannnyyeraaalsstoowotwncsnas,,doyosr hoaolldmdssllioiccfieennnvsseeensstttiooouunssse,,atare FcncouvmoeleroreovdupbibsyayetUeen.nnServtw.gpragpneaaadnttteefdnodetr.nse.diPgPatnathteepenanetttgessansaltpsp.ltpiTelcihcmaaebbolCflp eotm0opssape penecyci'isffiirn chceepspevrrooaadrdt cuiuchcottassneedcxxotdtueeennnvtdderliffocoopsrrmvwvaeharnreyytriianncpggtaippvteeiertriiieoospddrgsoaetancecceccrotoairrtodedniiannsggsattbteooaatdithhyneeesaddtr.aettTaeomhoffopapfacatittneeuvnnaetltanpaptrpipoolptnilesicccattahtitiaioootnnnare filing or patent grant and the legal term of patents in the various countries where patent protection is obtained. The actual protection afafvoradieldabbyioafplaitetgeanylt,rwehmiedcihecsainnvthaercyfournotmyc.ountyto country,depends ponhetypeofptr,hesopeofiscoverageandthe afforded by a patent, which can vary from country to country, depends upon the type ofpatent, the scope of its coverage and the availability of legal remedies in the country. p"TTihhneeCtCooomrmpgparannoyuybpbeoelfliireeevvleeassttethhdapatat tittessnpptaaictennittnsspprcroofvviidcdeseaannniiiammlppo0ortrtthaanntCtcocoommmppapenetyittiv3ee3aadwdvhvaoannliteaaggei1in0nammnayannoyyfootffhifetssCbobumusspiiannenesysss'eesssb.uInsniggneeensesnrsaeel,gnmnroeoasnsitilnnsgg.,llTeehe GipimrmaatppepaonhrrtittacoansrncgBceruooosfufipppnaaetotesfen"rntietslsnaPnitneatdrthhtpeeaItD,Denilstipseliassy7i,nanopnifddtstGleGrilafrsaapepFhshsoiyeicrcnsmstisas1ele0gg.tomKm.etehnnett is descinr"Pierfboremand Company as a whole or to an is described in "Performance by Business Segment--""Displayand y ofthe Company's business segments. by Business Segment" -- "Display and The Graphics Business" in Part II, Item 7, of this Form 10-K. Raw Materials Raw Materials fI1n220e0110c0,,ttdhcheeoCstCo,omtmppaparoatnnicyycuelexaxrpkpleyerriiielnn-ccdoeeddriocvosestdt nminaetcerseriasaslessiainnndmmmoosestatlrrsaw.wTmmoaatdeterariiatalleetsah,eannCddttrraaonnssppoorimrttsaattriiepoocnnefiufvueaienlgccososnustftsfs.i.TcyThiehinisstwwqusaasndtdirtriiivveeesonnbfbyaylhlhiiaggwhhe.errbbaassiicc immfeaaetetdersmritioaaalclnsskpyttcsoooummsacteseh,etspthcaiiotrtsrtitrrceateuagalseasosrolnnywaaobboulliylyl-ddfToeohrrraeievvsseeec.edaa3mbblMlaeehtepaprrrsiooaddlausuvcaoctnitiiddoonenmdrredeetqqsauulrsii.prreTtemoomeendnnattttse..,tI1tsthimes aCipmnooupmsoapsscastiinabryblienlisgteoorepppcerrereeiaddvtiiiiccnottgnffssuuuttuuhffrroieecuisseghnohthrqtcauogaaenrsrtoilotfiftermrsaaaoawwnfmamaagltglaeetrereaimrwaiesallsnosotfor the the e{iemxhxiripssoattuiicngnthgganrnraayewwgsumamactatheetersdrhiiaoaslrlutiiapnnglvveyeesnntcwtoororoiuieelssdanahnnatddvderdae.iecv3veeMcelploorhtpopatmmseesceantnvti,tooaaindnneadddgqqrduueaieaslmlriiueffniipccttaaisottiinaoonnntoodofifftaosadwdmdadiaritntdiouonpfnaahaclyltsussiurucipapnlppgllcyyoonpsstooertrauaccrttecisseo,,sn.s33tMhMrommuaagnnhaagcgeaerssecfcouolmmmmmoadonidatgityeypmpreirincceteorrfiisskkss through negotiated supply contracts, price protection agreements and forward physical contracts. EnvironmentalLawComplisnce Environmental Law Compliance t33oMcMo'snmtmainnauunfeuafmacactktuuirrniignn,ggnooeppceeerrsaasttaiioroynnssexwaprreenaadffiftceutcreteedsdbfbyoyrncnaoatmtpiioloninaa!ln,scsaetatwteitnahnddalploopscliacleaenbnlvveiirrlooawnnsmm.ene3tnaMtallisllalwsss arirnovuoonldvtuethhdeeniwworeodlmrdled..d33iMMshohanasascmmtiaodanes,sdaendldaeptplilaa,gnnstso to continue making, necessary expenditures for compliance with applicable laws. 3M is also involved in remediation actions relating eCnovimrmointmmeennttaslmaandtCeosnftiongmepncsiets,opfeoramtoironesdaetcae.tain ies.Refer to the"EnvironmentalMatesandLigation"scion in Note 14, environmental matters from past operations at certain sites. Refer to the "Environmental Matters and Litigation" section in Note 14, to Commitments and Contingencies, for more detail. Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo we https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 6/114 7175588..00000066 zane Migsohcivesadg GotOTIOOIOUSEHIAIO2O08T0_AHOSk hom 1E/n1rEv3n/i2ver0io1r8novmnmeeanretnenaetalxlupeeexxneppseeensndddi.tituRureresesesrreveeliasthifnntotpgrstt:o/ob/wiewixtwsies.tstsiienncrgg.gecclooaovntn/dAedidric1tthii0oiovnneasssnc/teciudacsguiasperead/tddeabbdtayyr/6eppm6ase7std4ti0ooa/0tpp0ie0oer1nac1rtio0oa4sn6tts5sti9tahh1oa1at0n0ddrso7oe8cn4noo5ork/tdacec1odo1nn-to2trn0rii6abb0unu_ttu1ee1n0tdokic.hscutucrmrroreuennntet doobraffsuitrusrewehen they paraerlrevaepponrruofoeabbsaacbbatllreeoe .aaennxEdpnerrvneeiasaressodoon.nnmaRaebbnelltsyyeaerlesvsteetiismxmfapaobbrlelelei,n,abgdgieelsnintefieeorraslarlceylallnpnaiotyoteladlltatetpoerrtartnhatainocniphthjhaeeateeccdoocrmmocepnmpltleteertdtiaiisooatnntioootfnoffefucaeorsasiestbisnbialtilirioettyyruestcutiuordrediseeosdpoeorrtnahtthaeienoCCnuosnomgdpmeiasnpnceayorn'uaysln'slteyccadoobmmeamcmsiaisitptmmtweaehlnneittnz(t0eothdaey apnladndofeapctirone. Econavvitrrotenhmedienetsatliemxapteedndsiteurles lives.for capital projects that contribute to current or future operations generally are capitalized and depreciated over their estimated useful lives. rI1ne0.m22e00d11i00a,t,3i3oMMn aiicnntvvieeossnttseerddelsaahbtooiuunttg$$o11c22rmmsiiillnlliigoonnmiianncrcaapspiittcaalaluppsrreoojdjeebccyttspsatoostpprroootpteececttrtthhaeetvetinhvioaitrnorsnmodoennnott.cmToTnhhteirissinabaummttoeouut.nonttceexxucclluruddoeeerssfeenuxxtpputerenenddiritetuuvrrueessefsfoo,rwhich are epreelxxmappneeetnndsisieemaddtpi..roCConavaapepicmitttiaeaolnlntees,xxrpspeecelnanrdtudiinbittgbuuerrtereoss,effcxoooirrnstteeiannnivvgniimrmrooeannntmmtteeesrnsntrtaccalaltupprsuueerrdpp,oobsssyoeelspsvahhesnaattvvoeerpeieincnrocacvltluieuodrdnyeesddutpphnooatltlllduuntotiidonotnnohtcceocornonmtntarrtolorlilboddxueietvdeviiitcczoeeesrscsu---r-ressanuuttccnohhr1wafsuwtwauanarsedstetreoxewwivaaesetnierurnettsrrc,eeawalttmhmeieecnnhsttare rCpceolsaonpnosttnnrisumiscbptierrldotvouyoer,rucmcuppepgtngirtrseaaa,ddsdeecedxrupiibennbnthdehireesnt,ncocoerosrmmnaotaatllihcnceomoruuertrnsshteeasonotfrffubobcuutseuismrnieneesesd,ssi,sss.otlCCvoooennnnsptsirisrosetjteceenonctvtt seww)riiyttohurnhthiketesnCCoaonwomdmnpptpahranoenjyrmey'c'ssatlsppoaolxlriiiccdiriiezessessrssrters-el-ssysiainnteggxnpeeeewnncvvtaiierrnododnnemmbxeeniesnttatiaanlblgouftacilities w a$r$es33s00tpmeomianlisnlillbidooirlnnietdyvou,vececreraptthmihtieeaslneseexixxotptnestwwn.odoiytyeuearaerrsss for new or (other than for new or expanded programs bul for remediation projects) for expanded programs to build facoimoldiefy known projects are facilities or modify manufictuing processes presently expected to be manufacturing processes attbooommuitniniimmiizzee waste and reduce emissions. `eWWnhvhiiillreeotnthhmeeeCnCotaomlmpcapranmnypyclcaiannncnneoo,ttptprhreeeddCiiccttowwimtithhpccdeearortteaaniinhntotyyytttbhheeelfifuuetvtuuerrteehcceooywssittsloolffshsuaucvchehccllmeeaaatnneuurppia)accteitfivvfieitctietesso,,nccaiapspitictaaallpeetxxp]peeenndxdiptiteuunrredessieoorero,ocppeaermraaittininngggcsocoosrtstssffoorr competitive postion. environmental compliance, competitive position. the Company does not believe they will have a material effect on its capital expenditures, earnings or 6 TTableiooffCCloomneterenst:s Executive Officers Executive Officers pFFoosolilltloiowowniinsnggthisesyaahlitasvtoeofhftetlhhde deeuxxrecicunutgtiivvtheeepooafftifcfervsfoofyfei33aMMrs,c., anNnedodftathhrmeeiiirrlyaaggeee,,apprtreesoseennnttsppooiscsipisttiotsonn,atthhemyyeeaoanaryleonleefccttgteheddeetooxttcheuetirvpperreesosefefnnittcpepraosssniitaioomnnedaa,nnnddoaortthieserr hpptheoerrsriseetaioansnnyysestunhsdneoitdysifsehctclahldovoesesed ehddesalrdroarefdanunghrgeieennmge1ent0hnteKto opfralsunitndnfgdeievr(resFsettyabaenrnadurdaisinr.ngyNpp1o6u,ufras2mru0a1ion1ly)t relationships exist among any of the executive .towhich anyperson ws selected 1 anofficer. to which any person was selected as an officer. Thisinformation f+ officers named, nor This information is is presented as of the date of the 10-K filing (February 16, 2011). NGNeaemeoergWe Buckley George W. Buckley PPuartriicckk DD,. CCaammphpeblelll JJooaaqquuiinnDDeellggaaddoo Joe. Haan Joe E. Harlan Michael A.Kelly Michael A. Kelly RRooggeerrHH.DD..LLuacceeyy mA6ge5e C ehs oa fPtrheeseBrnotaPo rosdm it,ioPnreass enn tand 63 CChahiirmEaxnecouftthievBeoOafrfdi,cPerresident and Chief Executive Officer 5588 SSenFeiionsrVoVnciiiceaeliPrPOferofesisiciddererennttaannddCChhiie:f Financial Officer S5U1 EExCeocxummtiuvnecViVceaicsteoiPPornreessusiiBddueesnniitn,eBEsllsveeccttrooeaanndd Communications Business SU 51 EExaencxdutOivfeefViVeccicsBePuPsruireensseiitsddseennti,,CCoovnnssuuemmeerr and Office Business St 54 EExxacenocduutiGivvreea pVVhiiiecceosPPrBreuesssiiidndeeesnnstt, Display Display and Graphics Business 6600 SeSneCinooirorproVVriacicteeePPDrereevsseiidldeonntpt,m, eSSnttrtaatteeggyyaanndd Corporate Development Y~ar F2u005e Elected to Present Position 2005 Ooerueneswemeso Other Positions Held During 2006-2010 202002 22000099 VViiEcPleePctrrreosnideicesntsMaaannrddkiGeGetnsedenMreraaaellMtMarnnaaangaeDgtirevr,i,sion, `Vic2E2e00lPe00rc77et--rs2o2i0n0d00iec99ns,MRaerskeetascMhaantedriaDlesvDelivoipsmioenn,t VaicOanefnfddPirNNceeeseiwBwduesBBniutun,sesRsiinsnee,esses2sa0VrV0ce5ehnn:tat2uunr0red0es7sD,,CeCovonenslosuupmmmeeerrnaat nndd Office Business, 2005-2007 2009 2009 EExex`ceCucotumitimvvueenViVicciacetePiPorrnesseiBdusesniitn, edEEslle,eecct2tnrr0oo0taa4nn,d2d009 Communications Business, 2004-2009 2006 2006 DD"iivnviidssiiooEnnnvVViiirceoenPPmrreeensstiiaddleeSnnat,,fOOectccycuuDppiavatitiisooinnoaanll,HH2e0ea0al3lt-thh 206and Environmental Safety Division, 2003- 2006 22001100 VVicicMeeaPrPrkreeestsiiiddneegnDnte,,vCCeoolrorpppoormraeatnteetS,St2tra0t0ey7g-ya2a0nn0dd9 aStfaMMffafVarVkrikeciceteeitinnPPggrrDeeDsesiiveddeveelnentolto,,ppmCCmeoornerptpno,otr,r2aa2t0t0ee006SS7--tar22ae00t0e0gg97yy aanndd SStfaMFTflfVaaVrimkciiceeentignPPgrraeeDsdsiieddSveeneintltmo,,ipeBmcBu,eusnsi2itn0,n0e2es00ss-02an60n-d02d60CC0oo7rrppoorraattee Planning and Strategy, 2000-2006 Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo a https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 7/114 11775588..00000077 zane 1/13/2018 Angela. Lar Angela S. Lalor Jean Lobey Jean Lobey RoberDt. MacDonald Robert D. MacDonald FredericJk Pansy Frederick J. Palensky BraTd. Sauer Brad T. Sauer Migsohcivesadg OGoTt IOOIOUSEHIAOIO20T80A_HSOk hom https://www.sec.gov/Archives/edgar/data/66740/O00110465911007845/a11-2060_11Ok.htm 45 SeVicne Proesidren, Homan 2006 45 Senior Vice President, Human Resources Resources 2006 55 58 EExxc`eoScuuctiaivvreeyVVaiinccdee PPPrrroeetsseiidcdteeinnottn, SSSaeafrfevetityyc,e,s. 2005 2005 Business Security and Protection Services Business 60. 60 SSeneiSnaoiolrerVsViic e President, President, Marketing Marketing and and 2004 2004 Sales 61 61 EExxcaeoncuudttiDvveeeveVVliicoceepmPPerrneetssaidindednetnC, hRReiessteeaarrcchh TaencdhDnoelvoegloypOmffeinctearnd Chief Technology Officer 2006 2006 EExxeSececurutvtiiivvceee,VVii2cc0ee5PP.rr2ees0sii0dd6eenntt,, Enerprse Enterprise Services, 2005-2006 SI 51 EExCeacxruetivBceuVsViiciocneeePsPruerseisditdeennt,tv,HHeeaealltthh 2004 2004 Care Business 7 `TabTleoofifCCoolmnetreenst:s Executive Officers (continued) Executive Officers (continued) HaaNkammeeCrear Sim Hak Cheol Shin aA55ge ccuive VpiPcrreeesePsnrtepPsoisidietinon,n Tura] 53 andTransporation Busines Executive Vice President, Industrial and Transportation Business Year Elected to Frat Present Fon Position 20062006 ubePeston nd regsts310 Other Positions Held During 2006-2010 MMaanrscchhaallllI. SSmmiitthh 6666 SSeneainnoiodrrGVVeinciceeerPParreeCssoiiuddneensntet,,lLLeeggaall AAiffarirss and General Counsel 22000077 VViiccBeeruPPnresrswiideceknCstoaarnnipdodrGdGaetenienoeenrnr,aa2l 0CCo0ou1un-sne2sl0e.l07 Brunswick Corporation, 2001-2007 IInngegGGe.. TThhuulliinn 57 57 EExxePecrcueutstiiivvdeeenVV,iiecteerations] Operations 2000 2004 President, International Operations John. Woodworls John K. Woodworth 59 59 SeSne`nSiuiooprrpVlViyciCceehPaPrieresnisidOdepenentrt,a,tCCiooornrppsoorraattee Supply Chain Operations 2006 VicePreAssi Piacidfic,e200n420,06 2006 Vice President, Asia Pacific, 2004-2006 `Cautionary Note Concering Factors That MayAffect Future Resuls Cautionary Note Concerning Factors That May Affect Future Results "This Annual Repert OThpies rAannounasli"Rn eHpeomrt o,onncoFFnootrramimns1100:-oKKr,,viianncrcldluulddioniongkg"i"MnMasnatnaaatggeemememenetnnstwt'sistDDhiisisnccutushssesiimoonnaannedd AAonnaafaltlyyhssinissProoiffviFFtiiennSaaennncccuiiraaillgtCCieoosnnddLiiittigiooanntiaaonnnddRRReeseufsloutrltsmsooAfcf t of iOn1199mp99a5e5t.re.artTTiihohaneelssCC"doienmloiIptveaemnmryemd7m,paocasyoyhaanaatsrlascoionnhmosmalfydakokererwefsaoforradrww-aloraindrond-kp-lilrndooegooskkssiitnanrteggelsmsettaaeastnteeet.msmeIwennnittatsshidiinndnoitohtntehh,eemrhereeaeCpnpooionrmrtgtspsofaffiinllwtehydieswtPrrihetihvprattethheseeeSSnSeteeaccctuuuirvrireittiisiemesssaaLaynintfdidgraEEotxmxioccnhhiaaRnneeggfeeoorCCtmooimmmAmeimcstmissoaisfkiooenn,, oinnlmfaoterrwiaarlsddleoloivkeirnegdsatotesmheanrtesh.olders and in press releases. In addition, the Company's representatives may from time to time make oral forward-looking statements. pFFeorrwfooarrmda-llnroocooekkiiWnnwoggsrtsdtasaattesemumceehrnnattssrr"deeplllaaatten,ttoo"ffeuuxttpuuerrecetve"veen"ntatsmsa,an"ndd"tbtyepyliicepavleil"yac"adpddardrorelejsseslstcth"yhee"aCCroogmmlp,pa"anny"y'a'smsieecxxpppaeetcct,tee"dd"ffnuuettuurrrdee,bb"uus"siisnetesissmsaaantnded"ffm"inwaainnclcii"aall"should" performance. Words such as "plan," "expect," "aim," "believe," "project," "target," "anticipate," "intend," "estimate," "will," "should," a"mCoounlgdo"tahnedro,thsetratweomrednstsanreltatrinogffsotiCloampmaenayn'isng, ypicaly ent suchforward ookingstatements In parca, these include, "could" and other words and terms ofsimilar meaning, typically identify such forward-looking statements. In particular, these include, among others, statements relating to the Company's + smsattrraktgeegtypoffsooirrtigrornoo,wwth,, funn future revenues, revenues, cing,cash earnings, cash ow,flow, ussof cashand other uses of cash and other measuresof financial measures of financial performance, performance, end and + mwoarrlkdewtipdoesicticoonn,omic and capil markets conditions, such aire rtsforeign curency exchangerete, and financial + ncwcoooonwnrddlidbittuwiisooiinndnsseoeosfefcooopunurporasmsruitpceupanlnipiedsrsc,lasappnnriiddtoacdcluuucmscstttaoorrdmmkeeeevrstresssl,,coopnmdeinttio,nasn,dsufcuhtuars interest rates, performance foreign cur o resultsof rency exchange rates, and f'mancial current or aicpatedproducts, ++ ttnthhheeeewossccboouppsueie,n,enntsoaasttfuuorrccpeeopnrootoriritmiunmpngmipaetnaciecctseito,cofpsfraaosccduquciuchsitasisditieilovneneg,,laoslspaatrmntatdeeernggetii,gcuaaanllladlltiiafoaunrntccyueperreaaonnpcddeereddfidoivvireemnssgttaisintt,uucrreee activites, or results of activities, curren t or anticip ated products, + fur leofvndeeblldncsss, common stock repurchasessndcapital spring. the outcome of contingencies, such as legal and regulatory proceedings, future levels of indebtedness, common stock repurchases and capital spending, Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo ne https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_11Ok.htm 8/114 11775588..00000088 z+=ane tfpweheuneosfrpifeoacrnvtsaaseni.ldoafpbocishltayrnotgfieraseinmMdnetnaatcixoc,beelsnigsvgtiaortsioconrnmeoedainhttmscaalisravkuneemsso,taphadetnrgidluaoGwornstasOndTcroenIgtruOilbauOttiioIonnsOsi,nUstehSetUEniiHmtIepAdIaOSl2Oe0es8T,0_AaanHxOSoknthhioemlrceo,unarnidcs inwhich 1/13/2018 https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm future availability of and access to credit markets, pension and postretirement obligation assumptions and future contributions, asset impairments, tax liabilities, and the effects of changes in tax, environmental and other laws and regulations in the United States and other countries in which we operate. "TheCompanyassumesnoobligationtoupdateo revise anyforwardlookingstatements. The Company assumes no obligation to update or revise any forward-looking statements. FFocorerwwratarsrddi--nlltoocoo.kkAiincngtgsustataalttfeeummteuenrntetssraearrseubbsaaassneedddoornneccdeersrttmaaiainnyaasssisuufmmprtpmitaiotoennrssiaaanlnlddyexepxrepocetmcathatitisiootnonrssicooaflffefutrlureeseevvoeennttthssoansnedrdetfrrleeenncddtsesdtthhiaanttaaanreyesssucubbjhjeecfctotrt0owarrriisdsk:kss anndd inoulcoonlokcukeidirnnitgagnsignts,tatiaatetmsee.ommAenengcntottsustdahdeleeprfpeusne,tdunird"eniMngragenosaoungnltesaamvaevannadrtri'eetrstyeynDoodiffsfsafmaccctautoyosrrsdss.i.iafIIfnomemdrnppomorAtratatanennrtitaaiilnnllyffoooffrryrFmmoiamansttaiinohoincinsitsaaaolsrtitCcooatnlhhdreeeisssteuifloftaanscctaotoonrrrdstshcRoceasnsenublrbeetefsflfoeofocOuutpnenedddriiinanntatihhnioiysnsdssdo"uocccuhudmmfeeonrerttnw,hta,erd- ihhinecanleduidncaignsgood,ofaf"mrb"iOOyovvpnrneegerrfovvogeiitreherewewsnr""sc,a,,eC""fMCtroriaimetniPacaaagdlremAAtc,ceclcnoote'uusmnnDtiiinn1sggc,uEE"ssRstisiiomsnktaFataneicsd"tmaAoanrnnasdad""lyt"FoFsifiinesnahaonsincfsciF"diaiaolnlcaCCunmooceinnandldtiCt,oioonnnxddaainsntiddhonoLLiuiaqqnduuidbiddeRiittceyyos..nu""sltiDDsdiioessrfcceOuudssapsieinoorainnnotitoofefngttrshha"eelsusepenadffraetucrotctofhtresriiss: cPPionaancrrcottreIpI,m,oiIlrntaeetgmemadt77b,,oy""rMrMseaftanehnraaaegtngmecemaemeynferctnoa'tm'usssDPDeiaiassrtccctuIuu,ssasIiltieooemnnlna1nAdsd,AA"RnnvaiaslaykrsyFilsmaoacofyttforFFriassin,nl"aalinnoyccfifsiatrahlloismCCodontonhdcdoiusittmeiisooenannattan,enadddnRiRdnestshehuoelutsflsdooorfbfwOeuOapecrprodealnrtoasioitodikntosein.rn"esg.d"staFaFnotoeirrnmateaedndgdtdirsiat,tlioospnnaeaalrlot ioiunnfffoorrremmpoaartttiisoonn onForm 10K,10.Q nd 5. fledwiththeSECfrom ime ote. concerning factors that may cause actual results to vary materially from on Form 10-K, 10-Q and 8-K filed with the SEC from time to time. those stated in the forward-looking statements, see our reports 5 TTableiooffCCloonntteeenst:s emItem 11AA..RRiisskkFFacacttoorrss PDPrirosovcviuidsdeseiddbobneelolfootwwheiisssesafcccaaouurttisoonnaiasrryyinddciosircpusosrsacitoeundoosbffywswhrihaefatoetwrwenenecbebeielitelovieaentodvbbceeontthhseeimmdoeosrstateniidmmptpoorerttaaannltt rrpiiassrkktfofcaftcoPtorrsrtsaaIpp,ppleliiccmaabb7ll,ee"otMotathnhaeegCCeoommmepnaptna'nyys.. DDiissccuussssiioonn aonfdthAensaelfyascitsoorsfFisininanccoirpalorCaotneddibtyiornesfearnedncRe ientosaonfudOcpolernasttidieosrnesd."an integral part of Part II, Item 7, "Management's Discussion and Analysis of Financial Conditions and Results of Operations." i**RnmReoessruullttsshaaarrnei6immppcaoacuctntteerddibbeysytahthneedeedcffietcvstssoofpf,,aapnddcrchhaoarngxgeessiiinn,m, wwtohtoilrrldeddiwsfldideeiyeeccoronenvooemmniuicceasannfdrdcocamapipotuitatalslimmdeaartrkhkeeetsUsncciootnnedddiiittiootnnsss...TThThheeeCCCooommmpppaaannnyyy'oopspeerrsaetess bBbiuneusysimionnoenersdsesstthissacsnsouunb6btj5joeelccc,totutso0nutcggrlhiloeoabsbaaaldlncidcsoordmmuepprpteievittoeiinstisooaninpnpnanrnoaddxnmicmmaiayaaytlbeblemeyaartadwkdveevotre-sstrehsolieyrrldydsfaoefffcoeitctsteerddwebvbiyeynfnnfcuuaoetcsotootnfnrrasommiiiunnctotAhhueetmtsUUidvnneiisttteehiddenSsUStptanaetiteteiessfdaacSnncdtdaootouetensht.eriTrehccsoeouounCfntortrrimeiegespisoatnhnhsya,t'tsoarrreein the vCbvahaeraryiinooognuuedsssiiiitnnnsddcuhuosesntrttairreovisle,iainsnsluwwcbhhhiiiacclshhattdthnhiydserCucCopotmimooopnpfasacnsniaynypiofottpiapnlrea,trnaectesiease;l;smssooarccriitkaaesll,t,sppoooxrllidtiioccawaetlnsort,urlorlbnrasboroeirnrgucceloocannotddniiioottnmiiosoinncissaiihcnnestispvpfeirectycsiifdfiiinicccstccpiooeouucnnnisfttiirciienescswoohourirncrtrreheiggetiishooenonsrsC;;rooeormgrapiaovadnenvsry,esrosreein the pense. changes in operates. the availability and cost of capital, interest rates, tax rates, or regulations in the jurisdictions in which the Company cr**eTdThihete pCCrooomfmiplpaeananyny''dssaccrsreieddgiitntdrraeatbtiitnnggassiaanrrgeesiimmpp3ooMr.traTinhta1tet0oC31oMm'ps accoonssyttcooffuccapaptilta.LhTTahsheaenmmAaAjoracratrtiidnnij ggaragagetenio ncncigiewessirtroohuutatisinnaeelblyyeeevvoaaultluulaaototek,tthhfeeroCCmooSmmtppaaannnydy''assr&d fcPParooceotodrori'r'tsssp,aarwnnohddfiialcaenhnaAAniandac22alusccsdrrieeegddfiniittndrraeaanbttciitinnarggla,,twsiwnigittsthhtaorss3ttbMaaubbe.slleeTinlohngueotClgodaoonm,kt,pfrfairnoonhaymmncc,MMiuaorloroerodnidytsyl'y,'sshIIannswvveaeesnlsttooA1rrsAss -SrSeecarrrvveniidccseiet,p.raTTathhirinissgwc,ievcwtvayhlailutuhaaattatiiisoontnngabiaislebbgaoasuseetelddooooannknn,daacfrtnnoiuiummmmebSebleteearrsnsoodsffaordf & Fdffiainencaartnoncsric.sai,allwFrraeheipiplocourhrtrteiiinnntcggo.l.umTdTaheiheneftCianCoiamonnmpctaihpanealynus'ytrr'seesnncgtruterhrrn,eabnttiutrnsrgiaisntnieengsvgsseshlahanwadvovefuesmlesdaernrvavcdeeivaddelrttrosisellkloyo,wawafesefrrew3c3etMMlTtl'h'assesbboCtorroraromnopwswpaianinnrygeg'cnscocoyscsotwtsstinoathnfddrfauftcainincdlgisliiaaatatngteeednacaccocicelcesedssassna1tddo0vt4aiemvnvaeearllriiinyeeaettyfsysfooeoffcft Tiquidity and sccesto capital markets lenders. Failure to maintain the current liquidity and access to capital markets. ratings level would adversely affect the Company's cost of funds and could adversely affect i**TmTphaheceCtCsoomrmepvapenanynuy'e'ssarrneedssputrlotssfaiartrmeeaarafgfffisenccstt,eeddibsbyyacfcofommcpeiptdeibttiytiivv(ee)ccotonhndeiddtietiivooennlssaoapnnmddencctuussattnoodmmteeirrmppirrneefgfeoerrfeetnnhcceeeissn..DtDreoemdmuacantniddofnfooorftthhceeoCmCpeootmitpimvaenypp'rsopapdrruoocdndiuectyts(s,1,w)'whhhiesicchh CiiCmnoovmpmepancpattanosnryryy'em'svsaerrineetusspaepoioannnnssedeedptfboroyoddcfooiutwwsmtnnowawmragaerirrnddsspp,rsriinisccdaiinfhnfggee(tco0ttseisdmatiabynyygcco(ooif)mctmuhpseepttdioeteimvvteeer;leop((ipu1;imir))cecchnhhataasanncnggedewsshtiiiimnnchiccnuugmsastoyotfmbotheemer aooinrdtdereorfrdppuaacbfttttiyeiorrannscnso,n,fossciuuuocnmchchpeaaaedstpiccrtdhhiivaacenneggpecerhsosadiinnungcettthssee,;ll(heeiivva)eentllhssgeoosff fniionntvhtoheeuneCrtCooprmroyompdmaupnacatiynns'yt,a'ssiinniiecnndlcceuebndntyitiinvvcgeuepshptreoroomsggurercaracsmmesass,ns,dooorrtfhttpehhreetoicdmcuuuiscsntttgosommooefferecr''ursseaatobbbmiiyliletoiyrut1ptryo0urcaacocchmhhapiieseeetvviseetwoiinrnhscci,eecnnahttniimvdveeacyhgoabounealglsea;;fsafaennicdndtec((duivsvb)t)yoccmhaheanarnnngodgeeuesssnicgiiennndsccpuufsrsoittrcooetmmheceerhrisas'np' grpperoreesd,ffueeccrrheseanntncchgeeaessts canafc th demanfod omeofthe Company's products. for our products, including the success ofproducts offered by can affect the demand for some of the Company's products. our competitors, and changes in customer designs for their products that o**FsFosorareleeiisggannnccduurcrrraeennncicyyngex.xccBhheaacnnaggueesareattteehses aCannodmpffllauunccyttu'uasattifiooannnssicinnitlthhoossseertreaatesstmmaaearyyeamafdffefeeenccottnmttihhnteeaCtCsoeodmmppaanUnySys'.s aadbobilillliatrystoaonrrdeeaaaliplizpzereoppxrrioojmjeaectcteteelddyggtrrwooowwbitihhrrrdaastesosfiinn phtirhtoseejseCCacoloetmmsepdpaagnanrndoyyew''sathrrrneeiuvvneeegnnssuu.eeBissneaascraeaelueddssaeeernrtiidhvveeeddaCfmfrorimoonmmpgo asoncuyot'ssuidlft iedntbthaheneecUaiUde navlinetisrtteesaddetelSmSytaaeafntcetfs,s,ctathtrheedeidCCfeotonmhmopempaUani.nnySay.'t'sesddorrleeilnssauuUlltst.sstSroo.effdnooogtplplheaeerrnarsstaiaotnsnidisgonanaipnnfdpisdrcoaistnxstialmaybiaaitlgeiltalyyitnttooswrreoea-alethiliizizerged:ns of projected growth rates in sales and earnings could be adversely affected if the U.S. dollar strengthens significantly against foreign currencies. t**TsThaheebCiColommptaponacynoy'n'tssiggnrrkooawwltythhorboejbneejecwcttiiipvvieepssaearlreienllaaeorrggfeenllyyeddweeppperenondddeiecnntttsooannntdhheteoitbinmriiinnngggtaahnnoddsmemaparorkdkeietcttaascccceeopptmtaaannrcckeeeo,ofTfiihtsisnsneeshwwipptrtroyomdduuaccyttoboffeffeearrdiivnneggrss,s, eiilnnycclluuddiinngg its ability to continually renew its pipeline ofnew products and to bring those products to market. This ability may be adversely Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo wine https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 9/114 7175588..00000099 zane Migsohcivesadg Got OTIOOIOUSEHIAIO.2O08T0_AHOSk om 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm actedbydifficulties or delays inproductdevelopment, such ss the inability todenyviblpw prods,aban aden affected by difficulties or delays in product development, such as the inability to identify viable new products, obtain adequate nteplroplerycprotcectiuon,aor glainmarke ccepiance of ew producTthser. reo guaraniceshat new prodswill provetobe intellectual property protection, or gain market acceptance ofnew products. There are no guarantees that new products will prove to be commerciallysucces. commercially successful. m**TaTthehereiCaColosmmappnaadnneyyn''sefrfuugtytuu,rrieenrrceehssiuunltsgs aaoriresasuunbbdjjenccattttutooraffllluugccattuusaaattniioodnnstshnientithhdeeerccioovssatttssiavaennsdddaauvvasalli0laasbbihlioliritttyyaoogfefppsuu,rriccnhhcaraseseaesddcecdoodmmepmopnaoennnednt,tsss,,pcpcoolmmyppooueunnrdduss,p,irroaawnws, cmmcuumartereaenrnicacyyltseeaaxxnnccedhdhaaennnerggereerggiriyysi(,sskinns,a,cnslnuauddltiurnnrga,oloddiiiliasaasaninsdetdernrtsastauaunnrrdadlotgathahsesesrranffnauddctttotohhrreessii..rTdTedhrheiereviCavCtaoiotvmimvepesps)na,snyudypudpdeeletpipoeeedsnnhdbdossyrotoanongtvhveaesarr,risifioonuoucsrsrcetcoahomsempemodpnodaenenemntnastusn,,dccf,oosmmuspppoopcoulfuynaindidsnsrspt,e,rroeriraduwwunpcttigos.nsI,t pmpotosashstsieeibrbfilulaeetltsut,hhraeatn.tdaaAnnenyynyeoorfsfgiuiytstsst(saisniuuncppelupdpdlliiieennrgrtreeoleliaalmttiaipononodnsshnhniaiptptushcrceaoolClugoldamdbspbeaaenndiiynn'tthtesererrirurupdpteeeerddivdodacufutiaevdtetieoosq)rnuasapatutturperapasllluiepandpnlddbiyeoosttohhetcehoredurdilssidsafahsostartevetrhersseaamnnadtoneouretfihaareclrtueavrdvieventengrstss,o,eoforifrtsbbiepectrotroedrinumnchitanset.ateIetddis gCiCnioovmtmhepnepaantfnuhyayt.tu.rIIehnne.CaAaddonddiyimttiisoopunns,,taawwinhnhieiyldleeintwtihlhtbeeeeraCCrluoepmottipooanmnciynehpshtahsasesfauCalpoplnrmryoompccayeaensnssay'gttsoermmeipcnireniiiimcpmietzioozcefvtavudooselqiaiutoialntitsteyosriiunntpccapoltimoefsprmoconeupenldptoraahinncanedvdmemelaaatsnmteecraititaleelrippuarrlioaciaicdrntvigsen,ihrgonnsoor,eotenaaafssgfssseeuuscrrtawaoninnccleetnchcetannbbee have s materi]adverse efectontheCompany. given that the Company will be able to successfully have a material adverse effect on the Company. manage price fluctuations or that future price fluctuations or shortages will not ev**AaAcbqciuqinusgiisbtitiuioosninsns,,esssitsrasaettrgeaigtciecgaalillelii,aaannnccedessp,,oddsisivvieebssltteiituuorrreegssa,,naiaznnadtitoothnhaerlrruusnntiuasscutaulreeivvneegnnctssorurelesdsuulaliftinfngegcfftrrfuootmmuprpoorrr(etofsoluliisoo.mmTahanneaCaggoeemmmepenantnt ayacmcttoiiootnnsosaransndid sootbehuersriness evolving business strategies, andpossible organizational restructuring could affectfuture results. The Company monitors its business Cpohrafnoglietsoafndsocrrggaanniizzaattiioonnaal]ssttrruuccttuurree,anWihasremsapedcetandeqmuaiysictoonntsi,nue10make acquisitions, saegic alliance,divestituresand portfolio and organizational structure and has made and may continue to make acquisitions, strategic alliances, divestitures and changes to its organizational structure. With respect to acquisitions, 9 TTableiooffCCloomneterenst:s turresultswill be afte bythe Company's bitoieacquiredbasins quickly anobtainthensiciptedsynergies. future results will be affected by the Company's ability to integrate acquired businesses quickly and obtain the anticipated synergies. C**ToThmhepeCaConomymplapniaynzy''essffuvatuurieroeurrseeossululstss,msauaycyhbbaeseaafLffefeacentecSdiftxihfeStehidegCmCaoo,mmptpoaaninmyypgrgeoenvneeerraoatpteeesrsfafteeiwvoenearrlpperrooddfuuctcfitivviiiattyycniidmmippprrroeoodvuvnceetmmiecveninttytyss.tthThahanereeessttciimamaanttbeeedd..oTTahhseesurance {Choatmlplanofythuteiplirzoejsevcatreiodpursotdouocltsi,vsiutcyhimapsrLoevaenmeSnixtsSiwgimlla,betoriemalpizroedv.e operational efficiency and productivity. There can be no assurance that all of the projected productivity improvements will be realized. t**ThTohsheeeiCCooomlmpvapinanyngy'p'ssoffduuittuucrrteerareeissulultss,mmaaaynybtbeeiaaf,fffeeecctntevedidbrboyynvmvaearnirtiooauulsstllheeeggaaUllSaa.nndFdorrreeeggiuugllnaaCttooorrryynpprprotocPcereeeaddciiinncggessasannAdcdtlleeagadallocctoohmmeprplaliniaainnccbeerrirbsiseksrsy,,iinnacnclliuu.ddiinngg uctchooomristrteuipiocntnivo,oonoorl,fvoinmriogogtpeththreooerdrsnmumacattitlnteiecasrlbs.ui.dliiTTtnyhgh,eeraooengutiuuttclroauttmsotc,eroyeoofnafvttmihhretoeessnreem,eleeagngrateaallfl,pperthonrecedUoeifd.Sfci.incFgueslomtrmeteaoiagydrynlidisCiffbofnelrrrrygupfrprrootsemmPdirttcahhtceetCiVCcoieormsmipAoapucnastnyafy'n'ssdaeoxxtpphcoeeerccrtadtaaettnivotoieon-nlbssorbpbirbemeceecranasyuut,ssseaecnhtthaie-eead the CmoCuoaotmtmcpeopamsannepyysreottvooficlcoiuhhtsiaaglnnayggteienoconctau, msrirnueescncluet pdeetisintbisgmlerateotgefrusieoloaafmtsfoolarinbayaiablmbitilltaiteitieteeesssrtsan,indamdrtereeeol,aafttesednudcdiihninfsasfuuicrrauannlstccitgeeonrrirefceciclceiiaaivvnbatalbybjlulpedeisrsecwwidhaihlceetrr.rueeVlipaanpprgiolpoilruiccsajabfubaedlc,egt,omooresrrnommtr,aadkkseeeivgssenulciocfhphimcseasenttntimtissamtctaleansetfmfleooeearrnd,the SCmsioiggauntnlitideffriirscceaapsnnurtltertvreenigogufuuluslstaltuytcoorrnryhyodtedasveuvreselcgloeopppehmtmiaebsetnlentctsosoofucolrrhedcaahhsnoangnagaebeslmseaviinentsaatepiepmpplaliitccaeaadsbbv,lleseeruslcaeahww.ca.fsAAfafcfutsutitgouunnrreietCfahiadcodavmvneeptrjrsauseednirycuuill'aiinlsngr,u,rslesisneutglttlot esmrofjeuondpe togomerruerunnnnaftf,vataovoirosrt isrgoabcnblnailefessihcddaeefnvvlteeosllweosotpptnlmmeemeannnettynt, pepacsroattruiitlimcdcauutrleleaassrr,uppleetereiriniootdfdh.ue.tFuFdorioesrccauhmsmasoriogroreenesdiedtntheaNatiatolicleteoddu1dldd4iisshCccauousvsmsesimioaoinnmtooamftfeehtrhnieeatllleaeagngdadavlleCpprosrreoonccieeefneefegddcieitnnnggoissnieitnn"hvvewoolClivvoiiminnggpthathhneeeyNC'CosootrmemspspuatalontnsCyyooanafnsnododpltetiherdaeataiatsosesnsodoscciFoaiiratnteacednadcsaihacaccflcloooSuwauntnstetiiimnnneggnatnsy. estimates, see the discussion in Note 14 "Commitments and Contingencies" within the Notes to Consolidated Financial Statements. tem 18.UnresStoatClomvmeentds, Item lB. Unresolved Staff Comments. NNoovnee.. emItem 22.. PPrrooppeerrttiieess. o33peMMra'stgegesenne7er6raalmlaoofnffufificcaeecsst,,uccrooirrnppgoorruaatteelrreeisseeaairrncchh28lIaasbbaotorerastt.ooTriiheses,,Caaonnmddpccaeenrtryainnopddeiirvvaiitsseiiosonn11laa5bboomrraatntourrfiieasscaatrreurlaoiccntadgteeddcoiinnvSeStrt..tPPinaagull,f,aMMciiinnlnnieesssioontta.3.8TTchhoeeunCCtoormimeppsaannyy ouside the United Stes. operates 76 manufacturing outside the United States. facilities in 28 states. The Company operates 115 manufacturing and converting facilities in 38 countries d33eMWsioognwwennds.sBtthheeecammuaosjoerr3ittMy ooifsfiittsslppohhkyyslsiicceaanlltepprrrporopiseperrtciees.h. 33aM'rs'sappchhyytsbsiiyeccasalrulfbfsilatcaziinltieetiiaesdls anretebhriisggehhglmyyessnuutiicttoaaobbplleeerffaotrritothhnee,pppuurrrpopoopsseeersstffwoioaehrrswihocficthehnutthsheeeyydwwbeeyrree multiple busines sents. designed. Because 3M is a global multiple business segments. enterprise characterized by substantial intersegrnent cooperation, properties are often used by HemItem 33..LLeeggaallPPrroocceeeeddiinnggss,. dDDoicissuccmuuessnsiitoo,nn aoofnefdlgesaghalolummdaatbtteteecrrsos nisssiiidnneccrooerrppdsoorrnaattieenddt by reference from Pat 1, ebgyrarlepfaerrteoncfePfarotmlPearmt I3I,, lem , I"teLmega8l, Not 14, "ComamndCeontinngetncises" Process." Note 14, "Commitments and Contingencies," ofhis of this document, and should be considered an integral part of Part I, Item 3, "Legal Proceedings." Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo ana https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 10/114 11775588..00001100 Hi mi------ TT 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm tem. Resdnatr. Item 4. Removed and Reserved. wn PART II Vem.Metfo ersComma Bis, ti Soke ters nd eeash of ityScr Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. a ---- Equity compensation plans' information is incorporated by reference from Part III, Item 12, "Security Ownership of Certain Beneficial yrs Owners and Management and Related Stockholder Matters," of this document, and should be considered an integral part of Item 5. At ey we 0 ts aodSH ck te ekSok oa. BYSEY January 31,2011, there were 104,261 shareholders of record. 3M's stock is listed on the New York Stock Exchange, Inc. (NYSE), the Son amo ame SA So rng.Cah fb ed rd sa S53 so or Chicago Stock Exchange, Inc., and the SWX Swiss Exchange. Cash dividends declared and paid totaled $.525 per share for each enti quarter of 2010, and $.51 per share for each quarter of 2009. Stock price comparisons follow: 010 " TabT leoofufCCoob nntteee nnttss rts mm YT aero Stock price comparisons (NYSE composite transactions) SE B ww S wm Bmse o mm e (Per share amounts) Sr TE Te TES Ts 2010 High Tm a-- -- 2010 Low Sot s Dns Gms mes Bus up 2009 High To SS 2009 Low First Second Third Fourth Quarter Quarter Quarter Quarter Year $ 85.17 $ 90.52 $ 88.38 $ 91.49 $ 91.49 77.25 67.98 77.04 83.00 67.98 $ 59.81 $ 61.46 $ 76.00 $ 84.32 $ 84.32 40.87 48.72 57.81 71.62 40.87 YooPach f tySct Issuer Purchases of Equity Securities Ey Repurchases of 3M common stock are made to support the Company's stock-based employee compensation plans and for other TE I a corporate purposes. In February 2007, 3M's Board of Directors authorized a two-year share repurchase of up to $7.0 billion for the emma 5. Fron To. br Fey 200 NPangerhs eread period from February 12, 2007 to February 28, 2009. In February 2009, 3M's Board ofDirectors extended this share repurchase en authorization with no pre-established end date. In February 2011, 3M's Board of Directors replaced the Company's existing repurchase TT program with a new repurchase program. This new program authorizes the repurchase of up to $7.0 billion of 3M's outstanding Eo nn common stock, with no pre-established end date. ------ Issuer Purchases of Equity Set mrt gona Securities (registered pursuant to rs Section 12 of the Exchange Act) ree n2 ony SpEeeD o= oworn.| = fETeFEn Period Total Number of Shares Purchased (1) Average Price Paid per Share Jy 312000 wos mo ~My January 1-31, 2010 Fry Lab 0n0 Sm -- Syn February 1-28, 2010 Tia a March 1-31, 2010 oa mary re 31,200 Te Tu Total January 1-March 31, 2010 -- ff ------ --- April 1-30, 2010 ne mers 3 mn apm 3 be May 1-31, 2010 ion tes 3 ne ems Iw June 1-30, 2010 To A ne 30,2010 ge a:J 1 Total April 1-June 30, 2010 yin EL ] 2m July 1-31, 2010 rn 300 = ne -- August 1-31, 2010 Somemaei 2010 i I September 1-30, 2010 Toy Seber 02010 -- = -- Total July 1-September 30, 2010 ------ oh ww Tl October 1-31, 2010 a am mm a November 1-30, 2010 19,104 $ 16,058 $ 213,121 $ 248,283 $ 392,863 $ 2,476,176 $ 1,885,942 $ 4,754,981 $ 76,382 $ 30,592 $ 16,091 $ 123,065 $ 153,840 $ 2,692,245 $ 83.92 79.26 81.05 81.15 87.51 82.38 77.16 80.73 86.34 86.41 84.40 86.11 85.40 85.00 oS A https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) --192,000 192,000 321,900 2,199,700 1,884,400 4,406,000 ----127,500 2,675,000 Approximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs (Millions) $ 2,567 $ 2,567 $ 2,551 $ 2,551 $ 2,523 $ 2,342 $ 2,197 $ 2,197 $ 2,197 $ 2,197 $ 2,197 $ 2,197 $ 2,186 $ 1,959 11/114 17580011 1758.0011 zane Migsohcivesadg Gat OTIOOIOUSEHIAIO2O08T0_AHOSk Hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm December 1.31,2010 seams mse _ ase December 1-31, 2010 "Toa Ociber 1-December 31,2010 ET AT Total October 1-December 31, 2010 `ToaJanuary 1-December31, 2010 Tose Sw odio Total January 1-December 31, 2010 2,600,252 $ 5,446,337 $ 10,572,666 $ 85.90 85.44 83.23 2,514,600 5,317,100 9,915,100 sie $ 1,743 5178 $ 1,743 $ 1,743 ((11)) 6TT)hheeshttooattraaellsmnpuuummrbcbehearrsooefdfsshihnaarcreeossnnppeuucrrtccihhoaansseewiddtiihnnchclheuddeeesxse::r)(cii)sssehhoiafrrseessoppukurrccohhpataissoeendds.uunnddeerr ttheeBBoaoradrd''sssauuhthoorrziaztatiioonnssddeessccrriibbeeddsahboovvee,, aanndd (ii) shares purchased in connection with the exercise of stock options. 2)(2) BToTahhreedtt'oostaaal unnhuurmmibzbeuertrooofnfssshhdaarereessseppiuurbrccdhhaaasbseoedvdeaa,sppaarrtt ofpublicly of publicly anounced announced plans plans or or programs programs includes includes share purchased shares purchased underthe under the Board's authorizations described above. un 11 TTableiooffCClonotnetenetnsts: HemItem 6. 6. Selscted Selected FFiinnaanncciiaallDDaattaa., QNeoarms eandbedoDsecceompb3ep1re:inmens (Dollars in mglions~ except per share amounts) YNNeNeaerteststieasnnalcdleeoessdmeDaetcreimbubtearbl3e1:fo 3M PeNPe`rerNtseshihntaacrnroecemooomeffea33tMtMrsibcctuootmamrbmmlieoonntbosst3utoooM3cctkkM::a--bblaseic NCeNNateestthiiinnndcccioovoimmmdeeeeanaardttttsbrrdiiubbeauusttbaaarlbblleeeedtattooo d333MMpMa----i--ddpbidealilrsiuicte3edMd Cash dividends declared AtDecceommbemron31:share comlnon share and paid per 3M ALTtoToDonuetaglcleatmasessbsemeettrssd3e1b:i (excludingportion duewithin Long-term debt (excluding portion due within onblegyaetairo)nsand longtem capa ease: one year) and long-term capital lease obligations 0 2010 Ss mem 26,662 oss 4,085 sn5.72 sa5.63 2102.10 Sos 30,156 aw 2009 smn $ 23,123 3193 3,193 ass 4.56 in4.52 2002.04 sma $ 27,250 me 2008 mew 2007 2006 os 220 5 ies nn $ 25,269 $ 24,462 $ 22,923 3460 40% asst 3,460 4,096 3,851 ass 570 sis 4.95 as S60 506 4.89 5.70 5.60 5.15 5.06 200 192 18 2.00 1.92 1.84 sms 269s 21204 $ 25,793 $ 24,699 $ 21,294 am sao sam aos Lz 4,277 5,204 5,224 4,088 1,112 nIoTtniem-mcssaiisnnhccliuunddcoeoddriinnatthheepcprhreaecrcegededoiinnfggSt6ba4bllmeeilwwlhhoiincc,hhobha1ad2daacssoiitggsnniipffiieccraannitt iiemmpdpaascchttaoornne,erreseluslsltsianarrge fssruuommmmmtarahriiMzzeeaddrcaassh2ffoo0lll1loo0wwses.n. a22c00t11m00einitnnccollfuutddheeeddPaanoien-eni-ttmime,e, PrnProeroonstt-ueeccscattsiinohounnindancneoddmdAAnefefftftaoorxrlddociashbbsalelreesgCtCeahaortrfeed$AAe8cc4ctrt,e,maiiisnnleclcidlouhnodip,inenorggratmm1i2oondgcdieiifncintcascatoptimieoeorbnndsyimmlSuaa1tded9dee4siihnmnaittrhlheele,orHHneeesaauanlllttdthinnCCgeatarfrrieeonamacnnodtdmheeEEddaMuutcacarratcitihiouo2nni0RRa1ebe0tcclooeonnn3caclMciiltimsbatyteiinooSt1nn9oAmAfcictthtleoolffPo22an00t.1i1e00n,2.t02200090099 aricnegsclauluuildtndseeodidnnrscreealsuslttderreuuodcfcttnuuereriitlnnlggoaesscasttceaitstioeotnhn(as5t1((5d$5e22mc00ir9l9emlamiisoleinlldlipioooennp-peprurrae,te-inta9agx,i,mn5$ic11lo22lm88oenmmbiailyflllei$oorn1n9tas4ax)ff,mtecri2ltl0tai0oxx8nraaaennnsdddunnlnootennitccniooncnnclttouromodlleelidinnaggetttritinobetueeetrasesbs)tl)h,e,atwwothh3idiMcecchhrbwweyeaersr$eee1d1pp9oaaprrmetitraialllltliyyionnoog.fffi2sn0cec0to9bbmyye mbbaiyygl$al$2ii2n6o6n9o9manmfiisleialirll-eoitonaonxafaarnnnedaddlneneoetsnttiacintnoeccno(oi$mmo1ele5itamntitgirblilbt uioutntaapbbrle eee-tttoaoexx33ie ,MtM$a9bbcmyyisi$$ill11ii99os44n, (mma8if5litlle8lirioomtnnai.x.ll)22.i00o200n088p0rii8nenrcceallusu,uddleet4dsdr3irneescitlrsuuldctetodurrniunaegtcfalaocetcsttsriiueoo)snnrssth(ni(a$d$t2n2l2d2go9e9scermmesiaillsrlleeiiodloanntoepppdrreeer-oa-tttaaixnh,,ge$$is1n1a4c4lo77mofe b$mbu2usi8sillininmoeeisnslssaleefosstne((r$e5-22tau33xxmmain)illdll.iononon2n0ppcr0roee7-n-ttrtaarexox,a,llli$$ns33g22iinmmncitlilelulrldiieoeosndnt),anafetetxegrirat-aitaan)csxt,)itv,hiwwathitheisiiccn(hhc$r5wwe8eearrsmeeedippllapairoertnirlatplllriyyeno-ogtfaffxies,netct$bo4by3myemaabgigylaaliiSnon6n8oo1annfstmseailrll-etloaooxfnf)eraaaennalddl eenlssoettstaasttieeens((cr$Soe44lm11aemtemiadlitlltlrioiooutnnhtearprbseeal--ltea0axo,,f 3a3$lM2We8bbmoyyfiSle$l4i4l4o4n88esammtfiatietllrell-i(oto5ann5x.2)2.2002m000i770ll7iiinnorccenllsupuuddlrteesddaigng,acailinun$ssd3r7eremdelilnailteeletdidognotaoitnathshfeteshsaaraltl)eion,ocffrwbebhuauissscieinhdneewosspseseeerrssa((pt$i$n88ga4499inrmmcioilmfltllioefoninbpybprar$yee6-i8ttlna1cx,r,mleS$ai55lsyl55eio00snmmiinalinlclldiniovonninertaaaifnfntmeceero-nmtrtaax)el)aalatntnirddilbauitgeaaabsiilnneSoot1onn34 pmmsraieillle-lltioooaxfnn,rppe$rar2ele9-me-tasuxt,ia,te$$l88(33$l5amm2fiieilmlrlli.oiootlalnnixno)fan.ftepe2rr0-e)0t-a6txa,ex),,sre$es3sst7trriumccctituluhlrriioinnnggaanacfctteetiirogo-tnnaassixn)((,$34w4a11hmtimiclhilclilwriooeennarpesprepreeda--rottaapixae,rl,la$y$t22ion77fgmfmsiielnitllclbioooynmnienaabcffteryeerra-$st25ea)2sx,3)i,namaennniddveleixrxoilitnataminacdcteontinivevtnitaittliieielsisnac((b$oSi4l4mi55etiemmsiil(ll$lii1oo3nn4 Papahtrttearrr-itbbmaauuxctt,aeabu$tl2bei9lcteaoml33ilMlMbiuobsbnyiyan$fe$4ts4e3sr3-88t(a5mmx1i).il.l0ll27ioo04bnn0..6i22rl00e00sou66lptiisrnneci-ncluaclxdluu,edddSeen6deed7tnt4bebmetienlngelfeaiiifnoittsnssftfahrraoeotmm.ginfgacaairxien)aasasrnereeddllaaofttpaeevedorartotaibntolhtgeheeiinnssaaccllooeemmooefefctbceayerxrta$taa5iid2nn3jppmouoristlirlotiontmsno(ioea5fnfo1nd334ntMM9n'es'sist libbnlrrciaaocnnm)dd,eeeddwhich wdpweheevarreremlpporaapicrmaeteiulantllitlcyyaeoolxsffpfbfesunesstbiebnysye5rsrese9ss(5tt$rr1uum.cci0ttl7uui4rroiinnbngigplarlacieoct-ttniiaoopxnnrasse(n-(St$da44x00f,33l$m6aim7lxi4ll)ilmio,oninsllpepiotreenl--mtaaaefxt,ne,rt5$-t22ac55xo77)smtaminolidlflliofaoannnvaoaarnffatiebcrrl-estaaitxnx)c)c,,olaaamsccseqquuatiaitrrxieeodadndiijnn(u-p$sp4rtrm0ooccmeeenisltsssiro(ee$nss1pear4are9r-ccmthhaixalnl,nidodSn2)5, wmihlilcihon arat ndenv) ironm, ental obligations relatefo theparmaceuticasbusines development expenses ($95 million pre-tax and after-tax), settlement costs of an after-tax), and environmental obligations related to the pharmaceuticals business (13millon pre-tax, S8 millionafer. ax). antitrust class action ($40 million pre-tax, ($13 million pre-tax, $8 million after-tax). $25 million n12 `TabTleoofifCCoolentneesnt:s emItem 77..MMaannaaggeemmeenntt'ss DDiissccuussssiioonnaannddAAnnaallyyssissooffFFiinnaanncciiaallCCoonnddititiioonnaannddRReseusultltssooffOOpepreartaitioonnss. Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm rama 12/114 11775588..00001122 zane Migsohcivesadg OGoTt ICOIOUSEHIAOIO20T80A_HSOk Hom 1/ 13M M3a/2aMn0na1ag8gfeiemnmeannectni'at'slssDDaiitsscmcuuessnsstiioosnnw iaatnnddhAAnanhnltaatyplaysst:si/ii/swsvowoeffwfF.Fosieimnncaa.tgnchocievia/apAllercrCChsaoipvnenedcsdit/teiiidovngneaorna/fdndmadataRRn/e6aes6sgu7ule4ltmt0sse/0ono0ftf0O,1Op1epN0re4'ar6ast5ti9iooM1nn10ssD0((7M AM8D4D5&i&/saApA1)1)-2rii0ss6dde0ee_ss1sii1ggn0nnkeeee.hiddtgmnt1hottpsperrcoetoviivoddniesd:a reader reader of of 3M's financial statements with a narrative from the perspective of management. 3M's MD&A is presented in eight sections: + OROvveeerrvvisieoewwfuOplerattiosns PRPPeeeersrrfuofflrtomosrmoamnfaacOnnepbbccbeyyeeyraBBGtieuouosnsgiisnrneaespsshiSSceeggAmmreeenantt = CNPCreeriirtwtfiioccrAaamlclcAAaonccucccneootubuinnynttgiiGnnPeggrooEEgnsrsotatiuipmmnhacaitceteemAsserretas New Accounting Pronouncements =yFinarncial Cpondit-- ion and Liquidity Financial Condition and Liquidity Financial Instruments OVERVIEW OVERVIEW h33MMe. CisonasdodilivviedersarsitfiefidieedFdiggnlaloonbbcaialalmlmaSnatunafutafecamtceutnurtere,rr,,etlteeeccchthninvooellooiggnyytihinnennoiovrvasattoqorraaunnddmamaorfa2krre0kt1ete0ter,ro3offMaawmwiaidddeeevcveaarrrtiiaetityynoopfrfoppdrruoocddtuumcctotssv..eAAsssbddeiiescesunscseiduisinsbnNuNesoiotdnteees11s771to0 pstsrheeeeggsmmeCeneontnntetssdsohiliniendtiaetstseccdoorFnnetitninfnasulniicennicgaghlteeeSfffiftooartrtetmmLtooeonddtprfisiv,vheeafeggfererococtwcwihtvtahhentbbignyyeastahllefiigogfnnirliisnlntggpqbebuuruaissroiitnednrseespossrfees2ss0eaa1nrr0tooe,uud3nn,Mdd3mmaMmraarkmkdeaeetntssacaeganrendtsadiniccsuupssrattooopdmmeeurrecsart.som.nTToshvhieesffsiibinnexaatnnowcpcieeiaaerllantiiniintfnsfogobrrbmumusaasitntiiineooesnnsss s`psSeereeggrsmmveeienncntteetsssd::nhIIendnrddeuEuislnstetrcrriiieaarfllolaesacnnntddsdTtTChrroeaamnnimsmspuponporiatrcctaaattttoiioiofnnot;hn; seHHs.eeeaalcltthhhanCCgaarerese;;fDoDirsisappllllaapyyearainondddsGGprrraaeppshheinicctsse;;dC.C3ooMnnsusmmuaenmraaeagnnedrsd iOOtfsfffoiipcceee;;raSStiaeofneytsy,,inSSesecicxuuroriipttyyeraaanntiddngPPrrboouetsecictntieioosnns Services; and Electro and Communications. gFFroouwortthhu-iquranrttear2h200p1f1-i00lsmtqsailfuiesosrggaLcrrCeeIrwwa)nTnctealValersylyS11l00eppeegrrrscoeewnnttthttoowSa$66s.7b7rbboiilalldlii-oobnn,a,sddeeedss,ppwiittteehnneegogartagitavinveiecccsoomlmpaspravirosisloounnsmseffsroeoxmmpaHnHdI1iNNn!g1aainnnddamlmoldobeduresairtanietinsnsggesssa,alleeesds by g11l9r9eo:.s88wppthleerruiccneemnonetpt twiiincancacsrlersfaetislrameoissninengfeEoEslrlteeLiccnCttrArDoosaiaTnnaVddPCasC.coiomSfmmailucmensauigncriaoctwait18.tiohopnnwssaaasennbddroaaarna11d44L-.bc7a7atpspieeenderrccA,eemwnnentitrthiicncroctaerrgeaaaatssneei1cii2nns2aDDpleiessiprvloaclsyua.maNdnpeedstGGlreiaxrnappacphaohinmcidycesisan..gGiGebioenugoratgalrlbpabhlpiuhecsiaictnloalelysl3ys,M,esro,irgnglaeahdineibccy a fqfsooauulurertstahhvqroqoulufutaamr2tet0eee0rr9wo.ofafs2F2u0s0rt11rto00hn-wwgqaueasassrt$$ti9n9e22A88misminialcilolPlimiaooecnni,fw,iaocosrrap$$te111.n.822a.881plppeieerzrrdbcedieydilnluutyttaeeenaddrdss.hLhaaanarr-teeiysnse,,aAccroomHmmIepNrpaiIacr-raeerdaedtlttoao1t$2$e9.2d933pc55eommrmicpleaillnrloitio.nsnNo,,neosotr,ri$n$i1cn1o.c.3rm3e0eappseaeetrsrtriidinbitluruteataewbddlsmeshahattoarerer3e,i,Manintointhshetsehf,efooauunrrdtthh avqidnvueveaserrtsttemtimresoiennnftgt2ssa0nto0od9sma. cecFcrcoeceulheerarrthantt-deeqiuffsuauitrtnutuergrreieniggnvrrceoooswwmtthtmhe.c.wn33saM)s,pccaeononnratalitinsziueoendseitbtnosoycuiiynrenrvaveerdes-aotsinitn-syreeesaisereaaHrnrcc1hhNreaslln-narddteeldddaeectvveoedetllocosoppmmmnetpenhnatetr,,ifsssooaalunleersss,tihsanqnncddurmemaaasrraekr.skeeti3ntiiMnnragmgwa((idimnneccalltsuueeddrviiineanrlggaclolsatsn,geand fourth quarter2010 acquisitions, including Arizant nc, Aten HoldingsS.A. and Cogent Ic. advertising and merchandising investments), and also incurred acquisition-related costs in the fourth fourth-quarter 2010 acquisitions, including Arizant Inc., Attenti Holdings S.A. and Cogent Inc. quarter. 3M made several large rFFooorrwttohott.aallFyyoeeraac rr22001100a ,, 33MMeasaccp cahhricieehvv,deee eddvrreeelccooor, prddmennneetttssaaalnleedsslaanntddddidlilueutxteepddecnesaaerrsnoiinnfggSsp1pe4ersishhlaalrreo,, whwiehlilleepeiinndovveedsstitiivnneggsvisgigniinfiifticcaaonnttlalyyntdtooniimwmppprrrooovvdeeullcootnnga-tlteesrr,mm3M logalfrsoo$ow2sa6thcc.c.cebFclieoelrrraotetneexddaamsnaapdllleeces, anarendmsdeiammracnaorhrkfkg,eedtstieinnvgg$e5.l6ii3onnppvvemeerssetitnmmteeeannntdtdsssriiehnnalhahrtiieegg,dhhu--egpgxrrpo1o5ew.w3nttshhepsmmearoarcfrkek$ene1ttt.ss4atntboodilh2leeil4olp.nsshpeeeecclrupucrereednffttuuottruuedrrsreepigvegrcertooiiwnvwtentlhohy.v..TaTAhtlihoelenCbCuoaonsmmdipnapnenaenswyyspppporoososstdtteueedcdd2tp2s0o0as11lie00tssi.sava3lelMeess oToorrrfagg$naa2snnp6iiocc.7rvvtbooailtlluiulimomonenegsatgrnro1odw6wte9thahr,p,neerliencdedgnstbb.yyoFfEIl$nle5ecc.c6hrt3roioanpagennrddsdpCCeilocuoimtmaemldmutsnuehinmaicrscea(a,dttuiioipsnocs1nua5sast.st3e22pd66be..e9r9lcppoewene)rtcr,aecnnned,tt,2DDi4ini.ss6cppopllamaeyyercsaaetnnnrddt,bGGruerrtsaapbppelhhceiitcicsvteaalt3ty22.M66A..i55lnplpeb2reu0cr1scei0ennwntet,sa,ssanens$ddp4o0IInns8ddt5euusdbstitprrlioilaasilliotaanin,vndedo.r Transportation at $n52.06038p.er diutd $5.63 per diluted shar, compared 1 $3193 bilo or 16.9 percent. Including special items share, compared to $3.193 billion or $4.52perdiluted share,in (discussed below), net inc $4.52 per diluted share, in 2009, and ome attrib 2009, and 3.460 utable t $3.460 obbiil3llMliioonni,n,o $4.89per itd sare, 2010 was $4.085 billion, or or $4.89 per diluted share, in 2008. I1Mna22r00c11h020,,0331MM0errneeacccootrrmddeeenddtaooonn-feh-tetiimmPeae,i, nnnootnn-P-rccoaatssehhctiininoccnooammneedtxaAxffccohhraadrraggbeeloeoffCSa$8r84e4 Ammicil,llliiioonnnc,,loourdi11n22gecmenondttissfpipecearrtddiiiollnuustteemddassdhheaarrnee,t, hreesesuuHlletiiannlggthffCrraoomrmetthnheed Education ReconciliationActof2010. Refetr he special fens discussion at the ndof this overview sectionfmo ore etl March 2010 enactment of the Patient Protection and Affordable Care Act, including modifications made in the Health Care and Education Reconciliation Act of 2010. Refer to the special items discussion at the end of this overview section for more detail. {h33eMWsheharasessbbtereeuecnnatugarggirgnergseasscisvtieivloeynlysrraeenssttrcruuicctttuurraiicnntggitvtihhteecscoromemspupalaninynygsisiinnncceaecneaaargrlgyyr2e20g0a00t88eaarnneddducccotonintotniinonuufeepddtpthhriiossxceifmffoarrtttlthhyrro6o,uu4gg0hh0ptthhoeestithhtiirorddnq.qTuuhaaretiereoolff22a00009n9,t, wwiitthh rStrhehaesrtesere.ucrsSetpusetrtcriuniacgrltcuchrhueaianrmrgggcseeassrctteaaidnonuudndcasoetratdhennedriertsespxinpeinetcccigaioacalmtlievilatieettmimeissserrbreeeudsdauuublcctlieenddgoenient3tMiainnncfcooaorgmagcerestagrta2ttrb0eib0ruu8etbdaubbycletiStloto1on393e4oMmfialfopolrproyrnoye,xeaaoirmrr22a0S0t0e00l929yb8bp6yy,4Sr0$1011d91ip9lomuimstlietilidloilsionohnsna,.,rToo.rhr$eR$0r0.ee.11la77ftptepoeedertrnrhdedetiilutteed sSssphapevaecircienia.agllsSoifptfeeemcamilsamlddoiiistssetccmSuu4sssss0riie0oodnnmuaaicltteltdhhieoenneeetinndidn2coo0fof0mt9hhieisaosanvtodtevrairebdvruviitiiaeeobwwnleasslteotcit3onioMcnnrfeffmoooerrnymmtearolarrese2add0veeit0tan8aigilbslo.yTTf$hhm1eeo9ser4eremreetsishtltralriunuoccnt$tu,u1ror5iir0nng$gm0aia.tl2cil8tiiooopnnnessriandn2idld0u1ote0exx,diitwssiahetcathtriietvv.hiiteReimeseasfjerroerersstuioultltttyheeeddofiinn savings of almost $400 million in 2009 and additional incremental savings of more than $150 million in 2010, with the majority of 113 `TTiabblleeooffCCooentnensts: 2h200a11n00$s's1bb0ee0nnmeefiiitilinlntoththneoe offipirestrt ahhtaailnflgofifntthcheoemyyeeeaairnr.2II0nn09aadd,ddwiititiitoohnn,, 33bMMeneaafmimteeonnfdsdeepddriiottssxppioollmiiccayytrreeeSggl8aay0rrddiimnnigglblbiaaonnnkkieendd2v0va1ca0ac,taitioonn in in 2009, 2009, which which added added more more than $100 million to operating income in 2009, with a benefit of approximately $80 million in 2010. Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm rn 13/114 11775588..00001133 naan otcouNceta BETABOD OSHS 20001 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm `Seles in2009 tole 23.1 bilo, deceaseof 8.5percent rom 208. n 200, global sno lowdowndrumatacatleyd Sales in 2009 totaled $23.1 billion, a decrease of 8.5 percent from 2008. In 2009, the global economic slowdown dramatically affected compassons for IV's ainsi, Subs nd decles and ventoryakedowns i jr dc, ENT OTT, comparisons for 3M's businesses. Substantial end-market declines and inventory takedowns in major industries, including automotive, Conmane ctonic nd genera distalmamta, esl sgn ower le snd income, Accordingly, M iced consumer electronics and general industrial manufacturing, resulted in significantly lower sales and income. Accordingly, 3M reduced cosscar,ower marcato apt50 inifstion fo opr proven.The combines its cost structure, lowered manufacturing output and intensified its attention to operational improvement. The combination of these actions dove operating incomemargins of 208percent in209,com10p20.6apercrenten2d008,Restrcuharcgetssnrd aihnr `sasppceteiccoiinaalsliidttreeommvsserreoedpdueurccaeetdidntthghiiissnocopopemerraeattmiinnaggrigininnccsoomomfee2mm0a.ra8grgpiiennrbcbeyynatappipnprr2oox0xi0im9ma,tacetoelmlyyopoannreeepdpeterorcce2en0nt.t6aaggpeeeprpocoieinnntttiiinnnb2bo0ot0th8h.22R00e00s99taraunncddtu22r00i0n08g8..charges and other In201,four of 3M ixBussstsprod eles crassincxces of 10prs.Operating ne margin wee21pent In 2010, four of 3M's six business segments posted sales increases in excess of 10 percent. Operating income margins were 21 percent orbighe nllsixof he Companys businessgn.Th Following bl cota ss 1 pean incre susby busines or higher in all six of the Company's business segments. The following table contains sales and operating income results by business Segmentfor he years endedDeceer31, 2010 0a200. segment for the years ended December 31, 2010 and 2009. Oust mien EeA eeme E TE o aawe moe E T WsoEnE eoP (Dollars in mflllons) BusinesSegment Business Segments Id iTana oratin S&S Ma%s 199 Sm NS129 mm am Industrial and Transportation HeathCae. am TaN ue am mee 10 sm Lon Health Care Digiey an Graphics J den us die bow m0 aon com Display and Graphics Comune nd Office 38 ew Me San lew ms now aw Consumer and Office Safety,SecaudrPriocettiyon Safety, Security and Protection Seis 3 mew wm som pw me sk Qe Services ecoand Commicatons Im owen eam Se om mew sem CECorloeprcpotorroraatateenadannCddoUUmnnmaalulllnooicccaaattteeioddns EliminationofDual Crit we __Gow oD ow _ dow_ 09 Elimination ofDual Credit Net Sales 8,581 4,521 3,884 3,853 3,308 2,922 99 (416) 2010 %of Total Ope~ Income Net Sales 32.2% $ 17.0% 14.6% 14.4% 1,799 1,364 946 840 $ 7,232 4,294 3,132 3,471 12.4% 11.0% 00.00%% (1.6)% 707 631 Q(27M7) (92) 3,064 2,276 1122 (358) 2009 %of Total Ope~ Income 31.3% $ 1,259 18.6% 1,350 13.5% 590 15.0% 748 13.3% 9.8% 00.11%% (1.6)% 724 322 ((110000)) (79) 2010 vs. 2009 %change Net Ope~ Sales Income 18.7% 5.3% 24.0% 11.0% 42.9% 1.0% 60.3% 12.3% 8.0% 28.4% (2.4)% 96.0% Tot Company Total Company $2662 _100S091%8 STD 100As%i $ 26,662 100.0% $ 5,918 $ 23,123 100.0% $ 4,814 isi mo 15.3% 22.9% 1201,se creas 153pen, by Electr sndCommunications t2.4prea,Dipey and Graphics 1240 In 2010, sales increased 15.3 percent, led by Electro and Communications at 28.4 percent, Display and Graphics at 24.0 pirat, nds an Trssporaions 16. erent, andConsumerand Offce st 1 prc.aes growth in es buss percent, Industrial and Transportation at 18.7 percent, and Consumer and Office at 11.0 percent. Sales growth in these business mensvas odbyconsumes lest, tomoive OEM,enslecer,and rodbased constrad ff roth, 5wel segments was led by consumer electronics, automotive OEM, renewable energy, and broad-based consumer and office growth, as well ls groin hos ines hat veh rodnus mamisector Local-aeneysles (which tes ole, as sales growth in those businesses that serve the broad industrial manufacturing sector. Local-currency sales (which includes volume, lin ric andsso impact, but exces dsr nd anlion pac increased 1.4 pee. Fogcureny eos selling price and acquisition impacts, but excludes divestiture and translation impacts) increased 14.4 percent. Foreign currency effects 4d 0percent ole, whilediverimpacts reducedsles by 0. perce. Operaing cn arg for hc 2010were 22 added 1.0 percent to sales, while divestiture impacts reduced sales by 0.1 percent. Operating income margins for the 2010 were 22.2 pera,compeo208 percent 209Refs he section nied Peformanceby Busines Sent 2nd "Peronby percent, compared to 20.8 percent in 2009. Refer to the section entitled "Performance by Business Segment" and "Performance by ots Ara ie in MIDAA fo Scion b bsnss pment ndFoo a oflscogsad hmsha pact Geographic Area" later in MD&A for discussion by business segment and geographic area of sales change and items that impacted cpa apraing income,Refer toNot 17 for dschsionof Corporate xd Unalcte nd lino of Dual Crit. reported operating income. Refer to Note 17 for discussion of Corporate and Unallocated and Elimination of Dual Credit. 3M ened $5.2 billion ofcperuin ashflowsin2010,an increfa2s3e mil whencompafor2e0d9, This followesdn 3M generated $5.2 billion of operating cash flows in 2010, an increase of $233 million when compared to 2009. This followed an incof SuAS milion when comparing 209 20. n 201, heCompany uiized pprovima5l1y.billionofch py increase of $408 million when comparing 2009 to 2008. In 2010, the Company utilized approximately $1.5 billion ofcash to pay Gividends. I February 2011, IM Bndof Directors orn ho rpurchss of up 87.0 bili of 30s cutstandin common dividends. In February 2011, 3M's Board ofDirectors authorized the repurchase ofup to $7.0 billion of 3M's outstanding common Sock pian heCompa sin repos ron,Thisarab a rca cndf.The Company stock, replacing the Company's existing repurchase program. This authorization has no pre-established end date. The Company Tepuehused SES millon of 38commonstock 2010. + 209,with heCompary'schasison min spl uid sd repurchased $854 million of 3M common stock in 2010. In 2009, with the Company's emphasis on maintaining ample liquidity and oi alice she Sen,SHS FEESbase AIWE Tl 482Got pusOfHockWelmade. ts Supa enhancing balance sheet strength, share repurchase activity was minimal, as no broker repurchases of stock were made. This compared {orepichoafes conan sockof SL billion 208 InFebru 2011 3sBord of Directorsuhoried Gidnd ese to repurchases of 3M common stock of $1.6 billion in 2008. In February 2011, 3M's Board of Directors authorized a dividend increase oFperfocr 20e11, mnrktin th $3 conseyacruoftdiivivdeend crassfo 3M. 3dMe t'ool apa rio ol capital `dodeefff4ii.nn8eedpdaeasrscdedenebtbtftpoplrluu2ss0e1eq1qu,uitmityya))rakatitnDDgeectcheeemmb5be3errdr 33c11o,,n22s00e11cu00twiwvaeassy22e55arppeoerfrccdeeninvtti,,dceconomdmpipanarcrereeddatstooe3s30f0oppree3rrcMcee.nnt3taMattD'sDedececebemtmbtobeertro3t31a1,l,c22a00p00i9t9a,,alarnnadtdi3o399(ptopeterarclcecenantptaiattat.l Desem3,b2e00r8. Apartionof he nes indeb ycr.co 308ws heresultof egy obud nd sansch but December 31, 2008. A portion of the increase in debt at year-end 2008 was the result of a strategy to build and maintain a cash buffer he US. giventhe fc masket cviroameot hap nme. 1Hs AA rei ig th ac culo fom in the U.S. given the difficult market environment at that point in time. 3M has an AA- credit rating with a stable outlook from Standard& Poor's nd 1 Ad2 crediting Standard & Poor's and an Aa2 credit rating 14 y Table of Contents ith sable auto rom Moody's Investors Serie In dion ca on hand,theCompany as uffinses tocapil with a stable outlook from Moody's Investors Service. In addition to cash on hand, the Company has sufficient access to capital makes to meetcual ticpaed rovth 1x cision vesmentfing ec. markets to meet currently anticipated growth and acquisition investment funding needs. in201, heCompanxpeincdcostes ot rv materi ad sprainfecosts,Thiswas diveby higherbasic In 2010, the Company experienced cost increases in most raw materials and transportation fuel costs. This was driven by higher basic tokSo Puen Ged tea35tmts. ToGe heCompan REVI Shit anes oll feedstock costs, particularly oil-derived materials and metals. To date the Company is receiving sufficient quantities of all raw thencoda RETO OUGHT 2680 1K https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm wor 14/114 7157588..00001144 zane Migsohcivesadg GotOTIOOIOUSEHIAIO.2O08T0_AHOSk hom 1/ 1mim3a/a2tt0em1rr8iaaallnspyttsooummacehtesthcitotssrtrreateagasesosonnwaaobbullyyldffhorhtrteapevssse:ec/./eawab3wblMwleeh.spaperrscoo.dgdauouvcvoct/iAtiidorocnenhdirvrdeeeiqsqs/uueriiudrprgetammireo/ednnnattttsas./.6tI6st7iim4sa0nii/m0um0fpp0ao1cos1tss0uii4rbi6blen5lg9te1oo1ppp0err0ree7add8tii4icc5ott/naffsu1utt1uhu-2rroe0eu6ss0ghh_ooh1rr1ttc0aakgga.eehrstsmoloffmrraaawwnammagateteermriiaeallnossotfo r the the eriemxxoiipsusattgiicnnhtggarnrnaaeywwgsmoumaictaihetcresdirhiaoaslrlutpiiannpgvvleeyesnntcwtoororoiiueelssdanahnnarddvrdedca.ees3vvMceeplolrhtpsaomsepsteamniv,etooaanindnteadddgqqdruuiaeaslrleiuffmipcateaitotnionaotnnntsoodofifftaosadrdmdwdiaairtntdiouonpfnaahacllytusssuruiippncppgllcyyoopssoeonrurasretcis.eo,sn.sS3tMhMrommuaagnnhaagcgeaerssecfcouolmmmmmoadonidatgityeypmpreriinccteorrfiisskkss through negotiated supply contracts, price protection agreements and forward physical contracts. 10I1n21002.10211p,1e,r3c3eMMnetexxp(peacsesctutssmsisanalgleeDsseggcrreoowmwtbthheorof3f111,00pp0eer1rc0ceeennxttocohrrammnogroeera,e,cwwist)ith,haoonrrdggaaanniciqcusissalilestsivovonoslaluudmmdeiegngrgroowwtiionnggp55e..r55cte1on77t.f.55oprpeterhrceceenyntet,,rc.cuuTrrheriensnccyeyexefpfffeeeetcstdsasaaddldedisinngg gtg1rrstooo)ww2t,thhpseaahrnncddoerndreetllm(aaattseesrdduiminnhecaicrnregemmoDefenfentsceateatlmltoobeppeeerrera3amt1tiis,nng2git0hnia1nc0cowoemimxelcl,eh,naiiennngcgcalletuuidrdvaiientnleggysi)aam,bbpaeenanndceetaffccitaqffmurriioosnmimgtcisouc,nurasrrsreaendsncducyiymnemgefaffr4feeictctzotses6d((apbsseeuslrumcomeiwn.nitngfgoDrDetehcceeemmyebbaeerr.r T3311h,,is22e00x11p00execxctechdhaasnnaggleees rates), should more than offset the items that will negatively impact earnings, as summarized below. a"TnThdheeprre aaorree aasffewwemmaatejjoxorpeiertnemmseswttihhlaamttdwweiceirllleannnseeggaa2ttt0iivv1ee1llcyyaimimmipnpagaccstt,ecwaahrmneiinnncggoasmiinpna22r0011e.1d.tFFoi2isr0stt1,0aa,ssdbdyiissscpcupsurssoedxdfifumurarttthhleeyrrbb2eelcloowwn,,t33MpMereexxippetecctetssdtthshahatatrppeeen.nsAsiioonn bbbanaaannndkkkpeeoddcstvvrraaecctaaiartteiimooannempnpootoulelniixctcypyocefchnhsauaennnuwggseeielldmmdavaeaddcceeraetiiainnsoe22n.002000E991ff1wweiceiltlallirvanaellissnJoogusnn,eerwggayahtteiivnv1,eecll2yoy0m0iim9mp,papar3aeccMdtt etaeoamr2imn0nin1gpg0ss,lbiinyow22aey00pr11p.ee1rg.oPiexPrvirmoiesornartt0teow.ly2o202y00e208a9cr,,es33nMtM0supaasellelrootdwweieleiuddptereedemmvspphillaoooruyeyse.eelAssyt0o babbanaannnekkkseetaddivcvamecaaracttataeiitn8idoocnane,m,nwwotiuitptnhhetrttodhhfeiurrneeesusudsuletlsitdihnngavgrarcreeabddteuiuoncectnfit.iiooEtnnfifniiennc2t30iMvM1'e0'ssJealHsniaaulbbai,rilyitywyb1h,bin2ecc0nhf0ewfi9ii,tnli3lngMgobbtoeotmtchhap2ml20oy0y0-0eo99eavseanrnwddie2rn20eo011g200iv0ooe1pnpe,retarawatnoitdinnygtgehraurseres,ssuutwollittslu..TsnTehehitghiassetcicihrhvapeanlrneyggveeiiemorpueasslculytltde2d0i1i1nn Vavapnepresrsueotsxi2mi2m00raa11tte00edclscoy8ommp2c9aeup.rna5itprspieosseronrcnsde.sin.FltuFintcienaodlamllslpyyh,a,arrM3eeMdbs'eosn2aee1alf.irytl7yipnaaess2rss0cee1ess0nssmtmreeefnsonutrtol2tofs0ft,1thw0he.ehiiicnnhccoowmmileel axrte nicaaexptecteed2s011 effetcaxtriatveoef not carry-over into 2011, and thus, will negatively impact tax rate indicates an expected 2011 effective tax rate of 2011 approximately 29.5 percent compared to 27.7 percent for 2010. aOOpnnpaarowwxooirrmllddawwtieiddleeybb7aa1ssisps,e,r33cMMe'n'tssoppefentnshseiioownnoaranlndddwppioodssettpreeettniirseirmoenenntotbplplilagaanntssiwowenr,eerwea99s009pppeeerrrccceennettnfftunfuduenddnaeadtt,dyyetehaaeerr-neeodnnnd-dq22u0a01l10i0.f.ieTTdhhpeeUnU.s.SiS.o.nqquupaallliaifnfiiweeaddpsplnlaanon,t, wwhhiicchh tfhifusunenadydpeeepdadr,ro,-xaaeinnmnddda2thth0eeel1yii0nn7tdt1eeimrspnaceatortiucioonenntnaatlalpotpefcerwtnhsaseiosownn5opp.rlll2ada3nwn%ss,iwddweeoerpwreeen8n8s099i.op5pen4erporccebeernlnictgtefanfututinonadndge,eedpdw..oAaAssts9sss7eetprrreoeermtcuuemrtnnhstsf2iiun0n220d009e11dd00,ifstfhocoeorrunthnhoeten-UaLqtSu.Sa.o.lqifqfuiuaeald7lii7fpfii%eeen.ddspip3lolManannpewwxleapenrerceewt1sa14s4t..on44o%%t wwhhiillee: rctcehooqennutytirebribaeuurdt-mteeein$$dn44i020m0001mum0miidlplliiesoocsnoiuttoonnSt$6cr6a0o0ten00tmwmibaliulslltii5ooo.n2nn3ooof%bflc,ciaadgssoahhtwitnoon0ittf.ss5og4glrlopotbebarUalcslpe.penentanpsglsiaieoonpsnnoniainnndtd2sp0p1f1ors.ostmr3tettMhirreeemxc2p0ee0tnc9ttpsrpdllipaasmenncrssoseiuiinnnontn22r00nat11t1de1..poTTofhsh5ete.C7eC7io%ormemp.mpa3eaMnnntyyedbxedonpoceeesfcsitsnntootteotxhhpaaevnveseaa in a2r2ce00cq1o1u1uinrtteotodiiinnnmgccirerneesiaatmssiemeuabmbtyyepaaewppnippstrrihoooxixninimmcMaoatnDteterl&liyybAuS$t22iao11n3n3dmomNiboillltillgieooannt1i1popnrr(ePef-eottnarsx,iit,sooonUrr2a.2Sn22d.ccpoeelnsantnitsssrpptinreirr2idm0ieu1lun1ett.e3ddMBshehaeanrxrepe,,ePcwwlthsaheespnn)enccfsoooimmorpnpaaaatrrnieedddopntfoooasl22tr00ei11tn00irf..eoRmRmeeaefftneeitrrobttnoeonccceorfintittcicleeaxmlpienngse in 3M'pensionandposet iremepnlats. accounting estimates within MD&A and 3M's pension and post-retirement plans. Note 11 (Pension and Postretirement Benefit Plans) for additional information concerning pFFroojrweocatredd-lrlo(ooroekkfiwiennrgtgsotasttahateteesrmmceetnntodtsnsiinnItetiemlmed77 "mmCaaayyutiiinnovvnooallrvvyeeNrroiisstkkessCaaonnnddceuunmcinenrgtcaFiinetcietsrottshaTtatht ccaaoouMuiladdcycnaauAusftsefeerriceetsFsuueulltttssusrt0oedRdieiffsffeeurrlmm"aattieertilamlyly ff1rraoonmmdhtthohosesereisk Fprcotjoecstepdro(vreifdeerdtontheemsec1ti1ofnoedntiitlsedc"uCasuostfioitnhoasrney Nriostkes CanodncuenrcnienrgtFaiacnt)o.rs That May Affect Future Results" in Item 1 and the risk factors provided in Item 1A for discussion of these risks and uncertainties). Special lems: Special Items: `oSSpppeeercacitiaailolntistee.mmssrerepprreesseenntst siigngificnanitcchhfaarriggeesscoorar ccrnreedditittss thhaatt aaree iimmppoorrtatnatnttotouunndedresrtsatanndidninggcchhaannggeess iinntthheeCCoommpapnayn'y'ssuundnedrelrylyiinngg. operations. 10M.Ina2r02c100h1,02,0331M M0 rereenccaoocrtrddmeeenddtaooofnnt-eht-etiPimmaete,,ennnootnnP--rccoaatssehchtiiinnoccnoommneedtxaAxoccrhhdaararggbeelooffCSa$8r84e4mAmilciltlilioionnn,c,olocr1i1n22gconedinstesptpeeirroddinilluustteemddsahsdhaeraerne,t, hreeessuuHlletiiannlggtffCrrooammrthtahened aM EExddauurscccaahsttii2oo0nn51R0ReeecrcnoeonasnccuicltmlitliioeaafntttiitohoonnefAAAtchctet'cPosofafct22hit0e0an11ntg00Pe(crtcaooolttlellcehctctitoiaivnvxelalyyn,,dettaAhhmeefef""onAArtdccoattf"b,)lM.eeTTdChhiaecrcaechrhAaearcrPggt,aeeintiscdDlduuurdeeeini0togm4bmaurrroeesdddeiuufmciccettainioottinno.TniinhsitmthsheaedevveaamlliunueeitohodfeftHtihheecsaocltmohcmpiCapuanamrynesa'yar'ssnseddddeeeffteedrrrleedd Note (incomeTaxes). tax asset as a result of the Act's change to the tax treatment of Medicare Part D reimbursements. This item is discussed in more detail in Note 8 (Income Taxes). bI1ny022S001001999,,menietltlillooonss,seeossr$f0fo.or1r7rreesptresurctdtuirritnugeaacnnshddtafroeuth.heer2ra0iac0ct9itnioionngnscslddudeeeccdrreeraasseeeddsootppeerrratutiicnncggttiiinuoncncroom(mie5en2bb0gyy9$$m11i99l44limmoinillpliaroenn-aaanxn,ddSen1et2t8iinnmccioolmmleoenaaattftireibbruutttaaaxbbliaenttdoo 33MM oobnnnoycns$ocn1aot1enr9otorfmlolrlilielinlnaigognsnit,enaottrerrse$s)0et.l),1,a7wewhsphietcircohhtdhiwwleueetrJreeuednppesaha2rat0rri0aea.l9ll2syo0ao0lff9efcsoietnftbcbalyNuydeaewdggaarJiennesrtoorsnunecys strauolreoifnooifglnfegaraecgatlilrcoenaassttal(et$e2c((0$591l155m,mimlililiwlollihinooipnncrrper-seeta-raxtae,,xc$o,1r5$2d99e8dmmmiiilnilllllicioooonnsnataolaffeftteseerarltateaxasx)xw)..TaTinhhdeie aghiaienn on sale of real estate relates to the June 2009 sale of a New Jersey roofing granule facility, which is recorded in cost of sales within the SaanfdeE,xiStcAactritviyteasn).d rfetionServicesbusinesssegment. Restructuringidiscussed inmredetail in Note 4 (Restructuring Actions Safety, Security and Protection Services business segment. Restructuring is discussed in more detail in Note 4 (Restructuring Actions and Exit Activities). is 15 `TabTleoofbfCCoolnmteeensts bI1ny02$01.09842, emn0ietlt0Tilooo8ns,ss,eoserf$so0rf.r2eo8sptrreurrcdtuierliusntgetdnarnsdhduatorchet.heuer2rr0aac0ict8itinoionnngscsludddeeeccdreeraaessseterdducootppueerrriaanttgiianncggtiiinoncncosom(m$ee2bb2yy9 $m$i22l66l99miominillplirooen-auanxn,dd$en1et4t7iinnmcciolomimoeen taattfreibbru-tuaexbleatnotod3M3M. nmbnonioycln$olcn1oot9nnr4toprlmorlelili-linlnuigxgo,ni,n$eot3er2rre$mes0it).)l2,le8exoxpinitetaraadecctitrliiuvvatiiet)tidee,ssswh((h$aSir55ec88.hm2mwi0iel0llri8ieooinnnpcppalrrueerd--tttealadxxy,,reo$$sf44tfr33suemmct tibuillyrlliinooggnnaaaaicffntlteieoorr-nn-tsaasxx(a))$e2aa2nno9fdd lrmlooesisaslsleeicsosnrareepltlraaett(-eetd4da1xto, m$ttih1hlee4i7ossanmllpeirololfi.fobbanuuxsas,ifintnSeee2rss-8sstaeemxssil((a$ln5i22do33n million pre-tax, $32 million after-tax), which were partially offset by a gain on sale of real estate ($41 million pre-tax, $28 million Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo roma https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 15/114 11775588..00001155 zane Migsohcivesadg GotOTICOIOUSEHIAIO2O08T0_AHOSk Hom 1/1aaD3fie/t2ver0er1s-at8ta)ixt.)u.rDDei)ivvenessdttiittNuuorrteeeim4ppa(acRceetsst,rurceehussttrtrtpuisrcn:/tgu/uwrcAwicntwtg.iusoaearncccs.ittgiaoononrnvgds/sAaurEcnnhxddietvexeAxsic/itettdaiagvccaitttri/veidsiavt)tiai.e/st6C6earo7resen40cdd/i0iess0rcc0uun1ss1ists0eneh4dde6g5iin9rn1mem1ol0or0sre7ted8ad4tee5eat/aagli1la1ii-,n2n0NN36o0oM_tt1eer1e220cke((.hAiAvtmcceqdcupuirsioitcsieoienidsosnannndsdd. rDeicvoersdteitduresg)aianndinN20ot0e84fo(Rr eassatrluectuersinegbaAccktiovnasnsaancdtEonxiet aAtcitviveittieosa)n. Cadomnicneirsntirnagtitvheelroecaalteosntaiten aglaiyn., 3M received proceeds and recorded a gain in 2008 for a sale-leaseback transaction relative to an administrative location in Italy. RESOFUOPLERATTIOSNS RESULTS OF OPERATIONS NetSles: Net Sales: NN"eeettsosaaflleewsso(r(milldiliwloiiondnses))sles CCoc%omhapomnofgnwepe:noatrsldoonwffinndeeeettsnssaaalllseeesss VVVooollcluuuhmmmaneeege-----:-oaocrqrgguaainnsiiiccions pLVProriocicclaueekmceu-r-rnaccqyusilsietisons DiL(voie(cnisanctllc-iulcudrudierinrsneggnaccayqcuqsiuaslieissittiioonnss)) TTDTroraitavannelsssslatlaiitetuiosornencshange. Total sales change 2010 U.S. Intl. Worldwide U.S. TaN SARS 268 5G 5 $ 9,210 $ 17,452 $ 26,662 $ 8,509 $ Ssh sss 68% 34.5% 65.5% 36.8% 2009 Intl. gE 14,614 am 63.2% 5$ BiB Worldwide 23,123 2% 7.0% Lr1.1 a0.1 828.2 =-=-FE8.2% ven nm 17.6% 08 09 0.8 9 2) (0.4) 13.7% 0.9 (0.2) 180 144 18.0 wn (0.1) 1s 10 1.5 SS) 19.4% 14.4 (0.1) 1.0 15.3% aem (11.9)% 242.4 252.5 a0(7.0) 03)(0.3) =-Te (7.3)% [es (8.1)% 191.9 is1.5 @n(4.7) (0.1) an(4.4) Gam (9.2)% 03% (9.5)% 212.1 is1.8 6(5.6) (0.1) 2H(2.8) Eo (8.5)% IP1na2c20i0f1i10c0,,Wllooocrcalalld-cwcuiurdrreeennlccyyosscaalleaessliinncccrreeusaalssteeedsdeg11n4r4..o44cwpptyeehrrccweenantst..eAAdllllbmmyaajEjoolrercggteerooggnrradapphhCiioccmaamrrueeaanssisschhaootwwieeoddnalltosocca2al1cl-pcuuerrrreennec,nyDssicaalslepyeslsaiiynnccarrneedaassGeerss,a, lpleehddibcbyytAA2ss3iiaa p"PpePreacerccerifenfintco,t.r,ImWIannodncrulesddtwbriyiadulBeaaunlnssoddicTnaTrtelar-snacnsurSpsreprogeroinmtrcetaayntattiisoo"annllnaeasttdg11r"77o.P.w55eptfpehoerrwrccemaenasntntlcaeaednnbddbyCyCGEooenleoscguntrmraoepsarhaniaudncnddCAOmrOofemffsfeimi"cceurncaiitrcai11t00nipopeMnrescrDceaeAntnt2At..7RRfpeoeferfreecarrentoitt,thDhneisssepecldcatitiyisoocannunsssdeseifGnotinriateoplefhdsdilcsesatc2h3an. "Performance by Business Segment" and "Performance by Geographic Area" later in MD&A for additional discussion of sales change. thI12n0e9 2c0o0m9b,illonocecadallLc-actuirurneAnrmceyrsseaialcleeasnsaddensecdctCliiannyneeddad55a..66arppaeer,rcceewnntht.i. cAAhllwl ammasajjofoarrtg.geHeoeogagrlrataphphhCiiaccraaerrheeaaasds sslhhooocwawlee-ddcluloorcceanalcl--yccsuulrrreeensnccygydreodcewlctilhinneoesfs,,3w.wi6tpithehrctthehentee,xxcwceheppittliieoonnaloolff tstohtheheecerrobbmuusgbsiiiannneeedmssdssmLssoeaeegtgirmmnengAenentmotssgetererxaixpcppeasheriaricineednnacrcCeeeaaddndseadscdehlcaoilniwanerieesnsa.g., which was flat. Health Care had local-currency sales growth of 3.6 percent, while Fiomuprrtohveqmueanrte.r2009 local-curency sales incr6.4epearcesnt,ewidth all business Fourth-quarter 2009 local-currency sales increased 6.4 percent, with all business all segments and major geographic areas showing improvement. 16 16 TTabile oofbfCCoolnmteeensts OOppeerraattiinngg EExxppeennsseess:: C(oPoserrtcoetnrtstoifaensesst siaelens) ReSCSseeoelllsaliitrnnogcgf,,hsg,gaeedlneneesevrraeallloaapnnmddeanaddtammniindinrstierlasatitevdereeexaxxptppeeeninsvseeses O(R(pGGeeaarsiieannat)lri/colnohsgs, sdifenrrvcooeommlmoespsaalmeleenooftfbabnuudssiirneneleasstseesds expenses Operating income mo2010 ion 51.9% 2s. 20.5 sa5.4 3--% 22.2% 002009 Ex 52.4% 2221.2 565.6 =-2% 20.8% so2008 9% 52.9% 2820.8 565.6 010.1 6% 20.6% 2010 Versus r32009 WHT (0.5)% 7(0.7) 2)(0.2) =-Ta%1.4% 2009 Versus fry2008 Oo (0.5)% 040.4 =-01(0.1) 0% 0.2% A`Awsshiddciihssccucosumssbesidniienndtthhdeepcprereeaccseeedddiinnoggpeoorvvaeetrirvvngiieeiwwncsseoccmtteioobnny, 22S001005994 iimnnccilluulddeeaddonrrre,0set9rupscetrutcriennrgtcchufhaarecrggteestss,,appluaea.rrtrtiIalnlilyy0o0nfo8ff,fsgsetetthbbyycoaamgbgaianiniatoninonsooanlfesroofeafsetrlerleuaclteeussrttiaatnteeg,, a2wacc6httiii9ocomnhnis,cl,oelemxoxinibtt,aianoccettdividitve|iecipsreteaarainncsdeedendasatoollpofoessessratoatninsnsagaslaleilneescooToffmhbbeueusesbwiiynneee$rs1ses9sen4s,o,pmpsaparielrtltciiiioaalanllll,yyotooref0ffs.n9tetbtphbeyayrcaaiegmngptaaaoincifotonnmenedtsssoaaplleleerosoaf.tfiIernnegla2il0nee0cs8ttoa,tmtte,eh,ieddncee2occ0mrree1baa0iss,neeTaddthioooeppneferooraalfttlriinoenwsggtiriinunngcccatouobmmrlieeensgbbyy sumanrize the 2009 and 2008special emsby $269 million, or 1.1 percent of net sales. There summarize the 2009 and 2008 special items by incomesamen caption. were no special items that impacted income statement caption. operating income in 2010. The following tables oC(omMsitellioonnfs)sales SRCScelseoileslnitangrog,cf,hsgg,aeedlneneeservraealll oaapnnmddeaanddmtmianniinsitsrrteraalttiiivevedeeeexxxpppeeennnssseeesss "Totalopcruing incomepenaly heeft) Research, development and related expenses Total operating income penalty (benefit) rne dOh Sema 2009 Restructuring and Other Summary Restructuring MEE GWT we actions Gain on sale of real estate Total Fm OST mF $ 110 $ (15) $ 95 ot = ot 91 -- 91 3 -- E] 8 -- 8 -- 5b $ 209 $ (15) $ 194 Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo ron https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 16/114 11775588..00001166 zane 1/13/2018 Migsohcivesadg OGatTIOOIOUSEHIAOIO20T80A_HSOk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm C(oMsitlltiooinrnssy) er SRCSecsleoleislitannrgogc,f,hsgg,aeedlneneeservraealll oaapnnmddeaanddmtmianinindsirtsrtlraatttiievvdeeeeexxxpppeeennnssseeesss LToRLostoeasssslefaafrrrpcooehmmr,sdssieaanvlogeeolofiofnbpbcumuosemsiniennpteeeassnnssadeelsstreylathedeeixp)enses Total operating income penalty (benefit) eReengestw at siaobeFissen Restructuring po abi mite Sam Ta actions vanes ail $ 84 ns [id -- a i 135 10 3 = = [] 10 Es oS zn -- 2 -- Tm Ts ym sai ae $ 229 2008 Restructuring and Other Summary Loss on sale Gain on sale Exit of of real activities businesses estate $ 38 $ -- $ -- $ 17 -- (41) 3 -- -- -- 23 -- $ 58 $ 23 $ (41) $ Total 122 111 13 23 269 Costof ales: Cost ofSales: C0Co2os0st1t 0oof,fssladlseesicnrinceclalusudedeoesfsmm0a.naunpfuearfcactceutnurtirainnggegp,oeeningngitinsneeeeorriimnngg2aa0nn0dd9f.ferAegihgnhuttmccbooesrtts.o.fCCpoosstitoofefssaafllaeecsi,,ommreseiaamsspuuarrecddtesasdayacppaeerrr.ccoeennn-ttyooef frnnreeetsssluassle.,sT,whwaeassse55f11i..9c9ptoperesrncetnt iyiinnnecca2llr0uu'1dd0ereed,dsai113rd.37i.ecp7cuerprerieancrsgceeenanoctttfigg0orr.5nooswwp.ttehhrIcniienanodotdrarigggtaaeinonpniico, is2snaa0tlls0ee9ssfrvvoionmoclull2mue0de0,e,9d.iimmApppernroounvvmaeebddloeffrtfacocy0otf.orp5rpyoyesutritticiivezlienazttafaatiicgootennorpllseeovvitmeellssps,,a(caaatlleoo5dnnggpywewiaetirth-horcncoo-oscyfstetnsaesearatvvraineiennsuggstslst)sre.elelTalathateeteddesetdtoof0appcrrstiipoooerrrcsial toyitefeemawmsrss..' hAAresssStddir1uii1ssccc0tucuumsisrislsnelehgiddoiainnnctNNwioaoonsttse.4re4Ienc((oRRarededsdsetitdrtriuuoiccnntt,cuurr2ii0non0ogg9fAAssicnclttctisiloou.nndsseTdaahnniaddspEEwexaxnstiaptAlatAcryttciiotaviflvil0ityt.ei5esos)pf),ef,ricicnnte2bn20t0y0a0g9a9e,,Sp331oM5Minmrrtiseelcc(looaorrsdndaeegddpaeS$nr22c00eo99nntmmsoaiiflllenllieoootnfnsainanlNrereese)swstrtrJreueclactrttuseuredriyirntnooggcoschfphaieanrcrggigaeelss,, 1gog2r0rfaa0wnn9u,uhlligeecihffvaae$ccin1iltl1iih0tteyy,m, cwwichlhloiiioncconhhmwwwiacaassscaroalenlscsdoooirrtrdiceoecondosrridnidnecdeVoiedisntncocczofussotacoloaeffsssa.stlaTelhtehsasi.ts.tIIwinnmaaaesdd,pidwatihtriiitooicnan,l,lay33lMoMsfofddnseeeecgtciabdityeiddvaeet$d0ol1y5sswiwmaapmpillVVipoeennneaegzczauoucienetllotaaonnnfsebbsaooellldesivvoaarfirnssai2iN0no0teo9w,UU.JT.eSShr..esseddoyeollrlyloaaerorassrfi-iinonngncyy2e0era0ar9ern,segntsibvbeeensnnepfeptihfriteotsssewiwcemoearnrteoeepmlpayair2crttpiicaeaollrnllcyydeioontiftoffsnytesetaibbnryyVnpp.erryniiceceiiaznnurggeoliiamnmpapatacrtcthotsass,,tsataismbassseeli,lsilw.innhggicpphrriiaccleesssoddneeeccgllaiintnieevdde0l0y..22ipmpeerprcacecentnettdyyeceaoarsr-t-ooonn-f-ysyeaealaerrs,,aiannnd2dr0r0aa9ww.mTmathaeetrseieraiylaleapprrr-iioccnees-s increased approximately 2 percent year-on-year on a gross basis. (nCCeootsstpt ooeffsnslaaellesostfsaysaa0.p5ppeeerrcrceecnniteaoofgfneenpteotsislasel,essordde$ecc9rr5eeaamssieelddli00o..n55,ppreeerrccleeanntttaaoeggeespppoeociinnattls einnn22s000.099Incco2om0m0pp8a,arre$ed1d2t02o.2m20i00l08l8.i.onAAsisnddirisseccususstsseredduaacbbtooavvuneer,d,2i2e00nx00ig9t9 aiicnntccillvuuidtdieeedds a wpnweeeretcrrpeerneretnecaacoglotreryddpoeeoddfii0nintn.5oOcptosehstrtecoroefbfnsetslnaaeeglefsesi.p.tTosThiuhn0sutss,o,,rsoretersso$ttrfr9uc5sctltmuuersriililnnisgoganaan,nprddeeorlotacthteheenedrtrtoifotfesmnspeestwcswiealerlereiest$e$2mn27cs7m.dmiIenlilld2loi0oni0nn8lcl,oroe$wwa1ese2rer2ysyemiaerani-lrsl-oioonln-ni-yyigeneaparrrre,i,scbbteeresunncaeetfufniritiiadnnngggsciacognoshdsttteoodxffeistsceaarlcseetsiabvbsiyityenie00s..11 percentage point. Other benefits to cost of sales as a percent of smaettraael,coFsitsn.aTlh,eiCnompany was ls ableto mitgl organic material costs. The Company was also able to mitigate organic volumedeslincsthrougheduction in SM'manufacturcionsgt net sales included increases in selling prices and a slight decrease volume declines through reductions in 3M's manufacturing cost in structure. Finally, in n17 TTabileoofbfCCoolennteesnt:s srreeasslppeoo,nntssheeettosodadectetetireoironiorsmartiaittniingggactcoeondnddNiito'ionsnsseiixnnpoVVseeunnrceerzuucellfa,,r33eMMVeVexencnchearznuugceellarsstwweaakppppseeddbbloilivvaarrs nointo U.S. U.S. dollars dollars in in 2009, 2009. While While increascionsg increasing cost of of sales, these actions mitigated 3M's exposure to future exchange rate risks. SSeelllliinngg,, GGeneeralnaannddeAAddmmirniinsiatsrtraatltiivvee EEsxppeennsseess:: mSSeaelrlllkiienntgg,i,ngggeenneeexrrpaaellnaasnnedsdaiadndmcmirneiinasistsertdraat1tii4vvepee((rScSeGGn&tR,AAw))heeixxcppeeinnnssceelssudiinencdcrraeeaassveedd 1e122 ppreerrncctedennpttiriionnmn22o00t11ig00ownwhihenevnnescctoommmepnpatarrieeddnt1o.22c0000ro.9f. IoIennv22ar0021100s0,p,seselraceleesssaanniddn 010 sTamThlheeaessrskeceeiotniivncnercgrereaeaasxgsepeededaninisnndevvseteisssnmttcmmareeernanktstsesiadaner1ge4esetxpxrpeeperneccgcetttneehtdd,, wpt0ouhhthieicelchluppildndarcrliilyvvueedsienasfdalaleasesdstvvevoerolrgltuurimsmoienwesgis,n,abgbnoeodtmthephrnrngoooimnwwgoatanioneddncoiinnnntotvoomteishthetemseu.efunrItntuei2rn.e0c.1rI0Ienn,asaagedesndeoitdrfiaoolnv,aeIin3rdMM20hdhtampasiesnriciinonesccnrrrteteiaainnssvee2edd0b1c,bo0tos.thths resmalaeis nceovdeurnadgeerancodnittoslm, aarktehtisnegcostsrtesngitnhc,rpeaarsteicdualtaralpyprinoxfiamsatetre-lgyrohwalifngheemaergionft g20ec1o0nsoamleisesg.rIonw2t0h1.0S, EgeAnereaxlpaenndseasd,mmineiastsrautivraeescdaosts pmrpeieerlmrclceaoeninnnttweoodeffuenntedrtseeslrcaecolesors,nd,tedrddoeeclic,rnrSaeesaaGssthee&ddeAs00e.e.77cxpoppeseertnrscsceieennnscttraaneggaee2s0eppod0oi9inantttsasMpeiipnnar2s2o0u0x1r1i0em0dcaacotsoemmlpyapphraeaerrelcfdetn1htto0e2o2r0fa00st0e9a9.lo.AefA,s2sit0hin1ned0sdiisccaraaletetseestddrguiircnnotwuNNrotoihtnte.geS4e4,Gx,rpr&eeesAntssrueexcsttipunerrcnirnsueegsace,esxxmetppdeee2unan0sss0ruee9srsoeidSofnfGaS$s&g99aA11 expenses by 0.4 percentage points. million were recorded in SG&A expenses expenses by 0.4 percentage points. in 2009. Measured as a percent of sales, these restructuring expenses increased 2009 SG&A 10SS2eel0lll0iinn8gg,,, bggueentnedereraacllraeannaddseaaddd$mmi3ni3in8sistmtriraalttiilvvoeen((SiSnGdGo&lAlA)a)rsee,xxhppeeelnnpsseessdba5yssaaappveeirrnccgeesnnfttoooffmnneretetssstarlluescstiiunrncicrnregeaasanesddeod0t.h40.4eppreearrcccteeinnottnaasg.geenpptoohiienntstssaliienns22a00n0099dwmwharhekenentccioonmmgpapararersee,dd aetadoxdvpev2ere0ntr0stii8esss,iinbniggunatacndnrecddacmmsreeereadcr2shce0ahd0na9d$ni3dSs3isi8GinnmggAcioclelsoixotsptnssewinwensreedresoeldaldasoorwws,npnheyeryelcepeaaenrd-trobonnfy-yysseeaarlave,ris,nbbbguuysttwfw0r-eoe4mrpeeeurruepcpseitrninnuttcaththgueeerfpifnoooguuirratstnhh.dqqoIuuntahar0etre0rr.8a.A,cAtsirsoniiensd.siIncnatttehrddeaubasaaboicltoveievst,oeca,nrunsredesartstmtnrriuuadcercnetktuxuergritidiintnnggg area, pSeaeccxritpcivveeinnittstiieeasssg,,einnpneoecitroenoatffssaae.gdgIn2aati0nh0oeno9nnfSossGuarll&tehoAofqfeaerxrepialeelnreessoesftas2t,ae0s,0iia8nn,pccrreseeracpasesaeenddtt oSSofGfGis&AaslAAersebbsbyytyrS$u0c11.t114u11rpimemnrigicllellpinoortnona,g,grwewahphmioi,ccihhn3tiisnn.cocIrrnoeeak2ass0aee0gdd8gS,SrGreGesA&sitvrAuescastasucrtaiinpoegnersra1eccne0tntioetndoofsufscasenaelgdseesenbxbyieytr00..55nd administrativeexpenses andshoparedback slanidmarnketging cots n certain bsinescs, percentage points. In the fourth quarter of2008, as part of its restructuring program, 3M took aggressive administrative expenses and also pared back selling and marketing costs in certain businesses. actions to reduce general and Research, DevealndoReplatmedEexpennsets: Research, Development and Related Expenses: Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo ma https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 17/114 7175588..00001177 naan otcou BETABOt D OSEa S20801 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm Rescue,development ndetd pees (RAD) crssd 11prot 32010cu0m 209,s cn 1 apa prfs Research, development and related expenses (R&D) increased 11 percent in 2010 compared to 2009, as 3M continued to support its key grow ive,RAIDss percent of et sles declined oS. pret om 5.6 percent bo 209 xd 2008 RAD cperses in key growth initiatives. R&D as a percent of net sales declined to 5.4 percent from 5.6 percent in both 2009 and 2008. R&D expenses in dos decked speoimatly pst 2009 compared o 008. Over dole pein 2009 vas pacedbycompany vie dollars declined approximately 8 percent in 2009 compared to 2008. Overall dollar spending in 2009 was impacted by company-wide Cont ites, Sh dationi dict spending. cost initiatives, such as reductions in indirect spending. Galas fomSaleofBsinsses: Gain/Lossfrom Sale ofBusinesses: In June 2008, 3M compe es of Highl Software Btery Ventures, a technology venture capital an peivate qi frm In June 2008, 3M completed the sale ofHighJump Software to Battery Ventures, a technology venture capital and private equity firm. 3M ceived proceedsof$85 millon for his rasanand ecogaizednt of astsl,ascound ibe costs reak os of 3M received proceeds of $85 million for this transaction and recognized, net of assets sold, transaction and other costs, a pre-tax loss of S13 milion corded he Suey,Scart nd Proton Serie sen) he cond aco2e008. $23 million (recorded in the Safety, Security and Protection Services segment) in the second quarter of2008. OOpepreartaitinnggIInnccoom mee:: 5M sspruing ncesoe of isprimary business sgt performance: essen tos. Opening income was 2.2 perc 3M uses operating income as one of its primary business segment performance measurement tools. Operating income was 22.2 percent of ls in 2010, compared 20.8pentof sles 20932020. pertof ls n2008, 200wh egmapclby of sales in 2010, compared to 20.8 percent of sales in 2009 and 20.6 percent of sales in 2008. 2009 was negatively impacted by esircuing expenses, et of gaoin lofera stat, whiccombineddecreed pertin income by0.prcniage pons (S194 restructuring expenses, net of a gain on sale ofreal estate, which combined decreased operating income by 0.9 percentage points ($194 ilo). 2008 was negatively npcby esucring actos, cit actvies and lgn seofbsinsssdat were purl ofict million). 2008 was negatively impacted by restructuring actions, exit activities and a loss on sale ofbusinesses that were partially offset yi ain on lofeel st, whieh combined ecrssed opring core by 1.1 pretagpits (S29 millon. by a gain on sale of real estate, which combined decreased operating income by 1.1 percentage points ($269 million). Interest ExpaendnInscomee: Interest Expense and Income: omen (Millions) rn cm Interest expense tet ne Interest income olTotal ee mw ue 2010 2009 2008 5 mm Tm $ 201 $ 219 $ 215 a a oy (38) (37) (105) Feywywm $ 163 $ 182 $ 110 IInntteerreessttEExxppeennssee:: IInntteerreesstteexxppeennsseeddeeccrreeaasseeddiinn 22001100,,ddrriivveennbbyy lloowweerraavveerraaggeeUU..SS..ddeebbttbbaallaanncceessaanndd lloowweerriinntteerreessttrraatteess.. IInntteerreesstt xpincreasedsigh in 009, primarily due igh avrg U.S Jong rm deb lanes argly offsetby bens rom expense increased slightly in 2009, primarily due to higher average U.S. long-term debt balances largely offset by benefits from edadshetembln an ower irsee. reduced short-term balances and lower interest rates. 118 Die Contes Table of Contents Inert Income: 1 2010, ners incewasbasicaly changedfom 2005, wit her average cash andcashequivalent blancs Interestlncome: In 2010, interest income was basically unchanged from 2009, with higher average cash and cash equivalent balances Jarl oft by owe rec. rs 1c deine in 2009Whencompared 208,marldye fn owe ison largely offset by lower interest rates. Interest income declined in 2009 when compared to 2008, primarily due to lower yields on vetnens. investments. ProvfiosrIincoomne Tases: Provisionfor Income Taxes: Contes men) (Percent of pre-tax income) Eine ie Effective tax rate mo2010 Tn 27.7% on2009 Town 30.0% a2008 Tw 31.1% Theftv a ifor 2010was 27.7 percent comparedwith 300pest in2009 nd 31. prin2t08 Themost sigifcsnt The effective tax rate for 2010 was 27.7 percent, compared with 30.0 percent in 2009 and 31.1 percent in 2008. The most significant lm hatdress he clfctiv a re 1 bol2010end 2009 led ematonl es. 201, wsdoe primary he item that decreased the effective tax rate in both 2010 and 2009 related to international taxes. In 2010, this was due primarily to the 2010 bene resin rom he corporate lignerschins ht allowed heCompany ores isownership os orsign 2010 tax benefits resulting from the corporate alignment transactions that allowed the Company to increase its ownership of a foreign `bsiay: Thewanaconrse esrb esc of No Geile "PurocfhSubashsarey ShaadrToerssof ers subsidiary. The transactions are described in the section ofNote 6 entitled "Purchase of Subsidiary Shares and Transfers of Ownership Tees rvling Non WhelyOvrd Subiiris" Interest Involving Non-Wholly Owned Subsidiaries." Theftv ux ifor 2010 ho nclads cin comxe charge ofSilo ss rl of theMarch2010 cient of The effective tax rate for 2010 also includes a one-time income tax charge of $84 million as a result of the March 2010 enactment of {he Patt Preto andAfloible Cas ACh inchingmoans made in he HesthCure adEdson Recon At of the Patient Protection and Affordable Care Act, including modifications made in the Health Care and Education Reconciliation Act of 2010 Acute nome eserves nd theDorms Mauer' dedction iso benefidaanya civ a tes. 2010. Adjustments to income tax reserves and the Domestic Manufacturer's deduction also benefited year-on-year effective tax rates. OnDecember 17, 2010,the provisionfortheres sn development eit wascided by he "2010Ta RfAGEfx On December 17, 2010, the provision for the research and development credit was extended by the "2010 Tax ReliefAct" for cxpenditesincuedupoDecember31,2012.Theprovision forthe crac hd piedan cer 31,2009,TheCompany expenditures incurred up to December 31, 2012. The provision for the credit had expired on December 31, 2009. The Company eoslle bentote eit nh ohare of 2010, Thebench of ce fo he lly in210 ct recognized the full year benefit ofthe credit in the fourth quarter of 2010. The benefit of the credit for the full year in 2010 is not "etry fat hom he ulyrbene n 209 materially different from the full year benefit in 2009. hecompanycum apthut cctvta at for talyear201 will be proximately 29.5peren Thereca vayfom, The company currently expects that its effective tax rate for total year 2011 will be approximately 29.5 percent. The rate can vary from Quer atedeo dee Hem, ich a he netof mo 5 suds sages n a ws, 5wel ing quarter to quarter due to discrete items, such as the settlement of income tax audits and changes in tax laws, as well as recurring theeane cso RET AOREOT OUGHGETOS 2680 HK we https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 18/114 7175588..00001188 zone Migsohcivesadg Gat OTIOOIOSEHIAOI O20T80A_HSOk hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm factors suchsthegographic mixof comebefore acs factors, such as the geographic mix of income before taxes. Referto Not orfhe discussionofincometaxes. Refer to Note 8 for further discussion of income taxes. NetIncomeAtriutabeto NonconirolinInes: Net Income Attributable to Noncontrolling Interest: NI et Income Aruable a NowonollngTiT est 5 , Ww 5 Ei (Millions) Net Income Attributable to Noncontrolling Interest 2010 2009 2008 $ 78 $ 51 $ 60 NNienetttriiennscctoomimnee3taMtrtriicbbouuntstaobbllliedatootneondnoecnoncontntirtr.loTlllihinnggciihnnatteenrreegssett rrieenpproreenssceenontrtssietohlelienliigmnminearitisontnoaoaff tmthheeiioinnscocuoormmnpenerioomrtraloroissslsyaarttterlibbiueatdabbtoeleS0tuommniotno-3m3oMMIooMwwLninemrsiehtirepd aoi(nJwpatnepaeraer)nss,)th,siwwipnhhii3inccMhhSuiicssmoi3ntMsPoo''mlssiodomas3toetMsdt sLesiiniggmtnniitiiitffeeiiscdc.aaiTnnstthc7ecoocpnnhessraoocnlelginddetasa.teeindd titywithnon-3M ownership noncontrolling interest amount entity with non-3M ownership iret. AsofDecember 31, 2010, M'sefctive s are primarily related to Sumitomo 3M Limited interests. As of December 31, 2010, 3M's effective ownership in Sumitomo 3M Limited is 75 percent. Currency ects: Currency Effects: bCCyuurrarrpeepnnrccoyyxiEEmffafeetccetsls:y: 33SIMMS eemsistlitmlioamnteasitthe2ha0astt1yy0eeanarr-d-oodnne--cyyreeeaaarrsuceuedrnrneecntcyiyncecfoffmecect,sr,eiinnbccluluuaddibninglghtheoedd3ggMiinnbggyiimamppppaarcctotsxs,i,miinantcecrelrayesSea2ds2ne0etdtiiinlncclooommeeiana2tt0tbr0iu9b.tutbaTlbhliees1to 33MM en bessyttiiammpaapsttreeooxfiinimgcf nlouactddeesllsytbtu$hhee1etde5weemecfefeinstlcl3itoooMnff itronraapn2nes0slr1laao0ttiinnansnggdppndrrtoeohfcfiertsesUaffnsrieootdmmendlleoSotccianalcaccouamurtnredennacbtcetiirreieobssuniitnaotbonleUUd.t.SSoa,.3ddsMoolalllbaayirrssa;ntpthpegeroiiixmnimpmaaactdetpoloylffoca$cs2ueu2srcrr0,ernnmtcydiylliiffolnlunucgictnutad2ut0aeio0trn9isi.oonoTvnsnheithshee ditirnoanlslntsarsrtfmese.rare3tonfMstsgcoddsoetedsiismgsbaneteitdswtgt0eoarentrndeydeu3eucMadcere.fofopoerryreeaeigtaginronncdseurirnireevtnanhteceiyvUceexnxncictdehhdaatnnSghgtearttreatsetreaarnnriisdssakkacssbtairanoondnaddtg;taheaiennnnedegntgardaatntiiosvvaeesctiisimonpdmagcatrpoionfsfsassawwnadacnppelppotiitsncnsgegosV,Vmieenennceltezuudbaeilunlagatnbdbbelolrileiivvvaa0atrrivss3eiiMnntoibyUU..SS.. SpproximatalyS115mioin2010adhd an immaterial impactin200. dollars. 3M estimates that year-on-year derivative and other transaction gains approximately $115 million in 2010 and had an immaterial impact in 2009. and losses decreased net income attributable to 3M by 119 `DTiabblleeooffCCoonetenntss PERFORMANCE BY BUSINESS SEGWENT PERFORMANCE BY BUSINESS SEGMENT DiaDsricslcpolrososuvuriredesesdrreeillnaatttihinenggNt0oe3IsMMts'ostbbhuuessCiinonenessssolssieedggammteeendnttFssiaanraeencppirraoolvvSiidtdaeetddemiinennIlttsee.mmA11s,, BBdiuusssciiunnseesssessdSSieenggmNmeonettnst.s1. 7FFi0innaatnhceciiaCalolniisnnoffoloirrmdmaaattteiiodonnFaaannnddcaotithh)eerrSdtdiaistsccellmooessnutursre,ess eraefrffefeoecpctwrtiiovvveebiiydinneatldthihegiennifftnhiigresstbNqquouusatareirtsnteertaroosotfshfe22a00rC1o1o0u0,nn,sd33omMMlaimdrmkaaetaedtddseeFacirnenardatnaccniunisapptlrorSoomdtedaurutcsec.mttmSmeoenovtgsvem.eesAsbnbsteetditwiwnsefceeouernsnmsaeitttdssiboibunnusNspiirnoneetseesessn1sts7geedmtgoemhtnehetnerstsCeionfnnetsitocslcticodsonantthteiiednnuuFiiiminnnpggaaencectfffioaooflrthtStotsoadterdeirmivveeents, CCgchhrooaawnnnggtsehessubffymooerrnaalarlidlgllnOppifeenfrrgiiicoobeddu:ssspSiprnarefeesessteseynen,tsSteeeaddcr..ouTruThinhetdeyramreenpapdorokrrtePtaratsbobtllaeeencdssteeicgogunmmseSteonentrmtvsseiacarsere.es;SIInenndgdumdseFturnlistaelicntaafrnnoddramnTTrdaraatCninossnpopopormrrtetaastmteiionoonnte;;ndHHheseaealrletthihinnCCfreaaofrmlreae;ctDDtisoistnhiperlaiisymaeanpnpddadcG0tGlroarSpfaaFphth'hiesciyscsebsu; siness (sCseweoghgnmimsceuehnnmttissenircisslapunprddreeebsOsoceftanfthitceceodd;rignSnaanthfhieecetytva,aboSbllleeeucssmuethrhiatiaytmt apffonoalldcllotoPwwpr:lo.utLLesoocstccilaoailn--nccSugueprrrrrevninicccceyeys;issmaalplneeadssciEccshhl)eaacnnntggrdoeemaaaomncuqdouniuCtsnoisttmsiramorneeuinssmiepcpaacatptirosan.teasTd.hnIiennroftdooiorvoirmergsgataatidinntoiuincrerlleooilccmaaaptelal-cdcctuut,orrrrec3anMcncsyy'lsassbaiuiloesnsisness i(wmhicphaianncdlcuodttealboslthesorhgaannigcsavorluambeoimprpoavcitsdepdlufsrscelalcinhgspergimceenitm.pacts) and acquisition impacts. The divestiture impact, translation impact and total sales change are also provided for each segment. AtAsesmddsiissicsguncsisufeiscdanninttltyhheeppprreeaccceedediindngg20oo0vv9eearrvvniideew2w0aa0nn8ddrreeesssuuallttsss.oTofhfeaorppeeerwraaeitiroonenssosseesccptteicioionn, tthheemccsootmmbabiitnnaiattmiipooanncootfefrdreeossptreruuracctttuirnriginniggnascccotiimooenns1na2n0dd1to0ht,heeTrrhsseppeecciiaall Following tables summarize thse items significantly impacted 2009 following tables summarize these special tems bybusinesssegment and 2008 results. There were no special special items by business segment. items that impacted operating income in 2010. The JRE2009 Restructuring A and Other Summary Ion(Mdmiulleisonns) and Tampa Industrial and Transportation DiHesaplltahyaCanrdeGraphics Health Care CSDCaofoniesnstpsyulua,mmySeeaerrnaadanrnGddOrOafapffhfdiiiccceePs:rotection Services: CESEoallrefpecetotyrcro,aStaaeennscddnuCdCriooUtmymnmaamulnnlduioncPciacraotatttieeioodcnntisson Services Toa operuing incomepenaly Corporate and Unallocated Total operating income penalty here) (benefit) Restructuring TE oleh actions T= rt $ 89 2 = 20 2 = 22 i = 13 16 as 16 n - 11 3 = 38 -- $ 209 Gain on sale of real estate $ -- -- -- -- (15) -- -- $ (15) me Total rey $ 89 220 222 113 11 nu11 338 5b $ 194 pm R [eEe iT e h P odn e --amdesite me (Millions) Indra ndTransporation FEE TE Te Tae Industrial and Transportation Restructuring actions $ 40 2008 Restructuring and Other Summary Exit Loss on sale of Gain on sale of activities businesses real estate Total $ 26 $ -- $ -- $ 66 Pisa ACDOD HES 1200_ OK ran https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 19/114 7175588..00001199 zane Migsohcivesadg OGoTt IOOIOUSEHIAOIO20T80A_HSOk hom 1/13/2018 https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm Health Care st 5 = Health Care Display andGraphics 2 " = = 2 Display and Graphics Consumer ndOffice 1s 1s Consumer and Office Safety,SecaandPrrfetctiyon Services. 2 TM = 3 Safety, Security and Protection Services Electr ind Communications 7 o - 7 Electro and Communications Corporate andUnallocated 7 3 = @ 3 Corporate and Unallocated "Totaoperning incomepenaly here) Fm wo ww1 Total operating income penalty (benefit) 51 24 18 12 7 77 $ 229 $ 9 18 3 -- 2 58 $ -- -- 60 -- -- 42 18 23 -- 38 -- -- 7 -- (41) 38 23 $ (41) $ 269 "The followingdiscusestotalyea resultsfor 2010compared 0.2009,andalsodiscusses2009compared 0 208,forcachbusiness segment. The following segment. discusses total year results for 2010 compared to 2009, and also discusses 2009 compared to 2008, for each business 220 `TabTleoofifCCoolmnetreenst:s Industrialand Transportation Business(32.2%ofeonsoldatedsels): Industrial and Transportation Business (32.2% of consolidated sales): SSaal`leeSsasl(memsilcillhliaioonnngsse)) analysis: SAa`clOOeursrgigacasnhniiaicicngloloeonccasaalnla-ccluyursriersen:nccyysslaeless ((vvoolluummeeaannddppririccee)) TALLroocnccqsaauulli-sicciuoutirmnorenensnccyy ssalleess "TotTalrsanlselsatciohnang Total sales change m sae w 5me am 5 2010 2009 $ 8,581 $ 7,232 $ 3% 17.3% 020.2 T7s% 17.5% 121.2 wi 18.7% 2% (12.8)% 262.6 Toa (10.2)% ao(2.6) Wa (12.8)% ue at 2008 8,294 02% 0.2% as4.6 8% 4.8% 303.0 5%7.8% OpOPeeprerarcaietinnntggciihnnacconommgeee((rmilillliioonnss)) Percentofsles Percent change Percent of sales sums $ 1,799 $ am 42.9% 210% 21.11% aos 1,259 $ Gop (19.7)% 174% 17.4% se 1,568 ape (1.4)% 189% 18.9% "bTTehhveeerIIanngddeuu,ssttcrieiaacllraaonnndidcTTsr,raaannusstppooomrrtotatatitiivooennsoseergggmimenenanlttsesrqeuvrvieepssmeaanbbtrroomaaaddnrruaannfggceeohofrfmma(rakrkeetOtss,a,nssdEuuccahhlaaoMssmaaopptlp)iilvinaecnacefe,,cppmaaprekaraeantndpd(papatacocekkabagogirdinnygsg,h, oofopooddaaannndddral. rbIInendidvuuesosrtatrrngiiaeal,paaernoldeddcuTtcTrrtaorsann,nsicpsespon,roeatrrtuagattytociimooonnnotpptiorvorledpouorcrocitgsdiuniincancslcl,eulqduculdeoitppsaumpreeeesn,staysmwswitae,inddmueesffavvocartraupiereerrtyrsoi(ooOfnfeacEcolMostaht)tyyegadinaedannndaedpunrtnoooonmdn-u-ocwwttoiosvv,veeeaanncfotbaeubrrsmrtaaiasvcirevskseeys,t,n(aaaddsuhhtoepesrsbiioovvdedeussyc,,tssssphp,eoaecpcnisidaaclalttonyydmmmparteaaettrareiiirlai)ela.snls,s, andproductthstaur sed filtration products, energy and products that are used inthe manufactur,repairand control products, closure syste in the manufacture, repair and mainioefnutaomnatciee, main, aircraft and specialty vehicles. ms for personal hygiene products, acoustic systems products, and co maintenance of automotive, marine, aircraft and specialty vehicles. mponents Year2010ress: Year 2010 results: `rSSiaalvleeesniinnmIIsnnddtuusstetrrniitaaillraeaTnlnrydbaTnyrsoaprngosaprnoairttavitoioolnnumiinencc.rreeFaaossreeeddig11n88.c77uppeeenrrccceynetnitmtopa1$0c85t8..6s6 bbaidildlineod.n.1II2npeloorcccaaeklcn-cutur1rrr2een0ncc1yy0tteserarmlmesss,,gssraaollweetsshii.nnccGrreeeoaagsseredadp11h77i..5c5applee,rrccleenontct,,al cadccururirveoreesnsnncctayyhlmessaapollseeotssreggnfrrtooirwoleltwiyhed,bcinyrbcyeroersragssaendedicninvnaoallluleemmmnaeeajw.rjoogFryroag,gareeeuoiobtgggornramalcpopuhthirieirccveenrrecOigyEoioiMmnn,,sp,anllceetddsrabbgdyyyadAAensdsdiiaa1a.dP2Pvaapcacieniffrciiccece..dnLLmtoaototcceaa2rll0-icc1auu0lrr,rseeaannleeccosyysgspsraaiolccewsest,hgga.rbroGrwoaestwoihgvwwreaasapssshybibsrcrotaoaelaldmyds,-b,blaoaascsnaeedldd- industri] adhesives across the portfolio, industrial adhesives xd pes. led by renewable and tapes. energy, automotive OEM, energy and advanced materials, aerospace, abrasives systems, and OsOpeepgremareatntiitnnrggeciinoncrcodomemdeeicnihncacrrregeaeassseeoddfS44833p9peermrcicelennltot ntfooe$$11t..88dbbiiolllliirooennstiirnnuc22t00u11r00i,n,wgwaictitthhioooppneer,rawatitiitnnhggiihnniccsoocmmheeamrmagreagrcigninsos ooffm2211o.p.00fppeeremrrcpceleinontyt..esIIennre22el00a00td99e,,dtihiissbbiuussisinneessossr Severanceandbenefitsof S84millon nd fied asst impairments ofS million segment recorded charges of $89 million related to restructuring actions, with this severance and benefits of $84 million and fixed asset impairments of $5 million. charge comprised of employee-related liabilities for aIIncnqdduuusiststriritiaailloanaxnoddfTtTrhareannstpasppoero-trrtaaettliitooenndccaoosnsnettitnisounefuseAtosolipinhnvaveesBstteaaaggggErnreetssessriipvvreeilslyye1tC0oo.aaccLceedlle,eraatteeeaiidttsinggrgroomwwttahh ccmaappfaabbcililitittyyou..fIIrbnnoFeFseebbsrreuuaaalrriyyng22t00a11p11e,,a33nMdMmccaoommspplkleetitetenddapgitetss h`haWeceiaqanddutqqieusruiattarihrotutenerrrToeeeddfctiihhnnneToTtlaiaopigppeie-,eir,seTTlaAaaitGiewwda(ananW.si.snIIetnntseaaroddtdfduiAirtti)iloopbnnh,y,aiiwBnnaDeDyetaecocEefemnamtbebperueprbrrl2i2is00ce110eC0,n,od.33eMLMrtaodfan.fn,nenaoro.ulueTnanchdceeienddatgtsahmaataitniattuehfhadaacdodtfuefrneettrreerporeeefrddbioioindnxttoosweaaaannsliaaengxggrtreteaeenpmedeemedanenttn1dott0omFsaeacbisqrkuuriainrergey2ta5p,e 2gW20i011inn11dtier(nrrtegehffutereretcTtroohencNNoholontotoeeglyo22gsofieoerrsrvaiaAndigGdiict(uoiWosnntiaolnlmteeiinrrntfshfoounrrrmt)mhaabtteyiiooawn)r)a..eyWWoiofnhiftnaaeterrprtudthhbhuul0rirc,-bbtiaeasnnseeddddeprriinenocfZZfieasurgig.,o,TnSSahwpweipitaltzzisseceorarlctaaiinnaoddtn,e,sdiisiosnaaffdleeuerasadpdtienirnrgiigoagdgl,lowaobubaataslolmessoxuttpeiunpvedli,eepdrsootforfpppFsrree,elbcciraiussnieaioornync2u5t,ing To{tgoaoropilnels.ds.CiinCangpaCpitheititcaanhlans.spopCelaeonpngdidiytinnasglgerisivnnpitenthnhgedecIiIunnnsgddtououmnsstvteraihrasellsiaaennpnrtddhoTejTrearacnartsenspasopworoiftrlahtatactiriodoann-ytobbu-uogsseiriinnrneedsisssipoiri2ennccc0ill1suui1ddoeenddsasploplalaircaeentnicoerrnggsyyiniinnitnthhdeeusUUt.r.SiS.a.la,ananduditoinnmdduouststitvrreiia,]laaaidrdchhreeassfiti,vveeassndaanncddutting tapes in China. Capital spending on these projects will carry over into 2011. 221 Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm na 20/114 11775588..00002200 zane 1/13/2018 Migsohcivesadg Got OTIOOIOSEHIAIO.O20T80A_HSOk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm TTableiooffCClooennteesnt:s Year2008ress: Year 2009 results: eIInncddouunsstotrmriiyaa:ll aExnadrdlTTyrariannns2psporo0trtaattti0ihooebnnu9iissian,ellasarrsggeseaaawnnddshihiginggihhflilyycaddnitivveserlrsseiifsfiideededissnetteoofbftubhsuaitsrnineeessqsseeussithhsraaw,tei,wfwdhtheaennndtaaalkgkgeernnettsoosgeitevtehhererr,e, cscotorrrelulatctetawwueedlrlllicwwnioitgtthhrttehhdeeuocovtveieroranallll Inppevlcleaaonnnntssoomtr0oiyooe. fsfEfbsateertlgythaheinen iti2mo0sp0aa9mcb, ttiohoflpefzolbowauwraseioernurenvvscdoosllmsuuiamtmdw-eeyssse,igaiinnrncicf2lli0uuc0dda8iin.nntggsatthlheeesiidmmeppcaalcicnttoeosffatlhagartgeereiiqnnuvvieernentdtoorsrywydiedfctelcailninndeesasgiignnrtethhseeswivwheohlroeelsestsaraullceetdudirsiistntrrgiibbauunttdiioocnnoccsthharaenndneuelcl..tion Inventories began to stabilize around mid-year 2009. p1Ien0n2a20l00i09z9,e,dssalslleseswsweferoreeth$$e77..y22ebabiilllbliiyoonn3,,.d6dopoewwrnnce11n22t.88pupleeresceinntcririnnedadocsloelldlaarenrstnhanendddedonotwewnwns11b00i.22cpprerecyenrntiidnncfslootccoaaelmlocctunuirrvreetnescf,yl.cFFroomrareeriikggenntcbcuuurserinenncceyysisimm,pbpauactctstassles oppdleecancrnrateeliasszsheeeudddts-iinandloethhsweenofo,otrtfhhtuherrrelbboyuuusegsiahinrnsebesasysnsee2dss,.m6,aiipnmmedprpaacatceconttrete.dydbvSbaayycleeaenstndiidno--ncmmraecararrkskoeeestdtsddientelhcteihlineoncperseser,.naTTethiwhoiianssb.sslneeeggemm2neeenrntg0tysaamni0nhnsdoobuuua9nnuscctieoendd,merroseetsssitvterreuugccamttfeuutrenriirtnnmrggeaaccarktcoeitritodonbensudssciiinhnnae22ns00gs0e0es99s,,,sobfaoulSotn8nsgg9awlweistithh mmpmiilailllnlllitooosnnnhrueaentl-ldadtofedwidxntteoso,arrefsesusetrtrtlruoucuictgutmurhirpsningaagniadaccmtmtiieaoonnonnsfds,tS,atww Ssoirtymhitvlti hhiaiocissna.ctcihhohaIanrrnggaeeccrlccoosumsdotphihreeinmssoegpdeposorpfafeetceirmoimpanllp.ioliIonymyes2see0e,-0rere92el,0laat0tdhte9eiddsobpllieuairsbaifintliieetnsigesssisfefnoogcrsmoesmeevenvetewrrraaeasnnccocSeer1d.aae3nndiddclbbhelaenrogenefaiestnsofdooffiof$Spt8$e898r4sa4.ting incomemarginswer 17.4percent.Thissegment recordedS66million elated16 million and fixed asset impairments of $5 million. Including these special items, income margins were 17.4 percent. This segment recorded $66 million related to restructuringand xi activitesin2008. 2009 operating income was $1.3 billion and restructuring and exit activities in 2008. operating Investment: Investment: IaInnppMMraoarxrcicmhha22t0e00l05y5,,$I35M5Msm'sialaulutotoon.mmaTottIiivv&eeMbbuuisssiitnnheeesspsaccrooemnmptplcleeottmeepddattnhhyeeoppfuurrLcch&haaTsseeIonofnfov11a99tippoeenrrccTeeennctthoonffoTTlIoI&&gyMMEnBBteetwteeiiicllikiglguuunngggssauggneedsseeHlllolslsccdhhiaanfRgt mmAkbbiHHen((gTTeI&sIeAMl)s)cffhooarrl Iea(Ipx&&piTTrb)ol),x,eaiawmnniarAAtieunuslgysttrry$ii5saa5ntnemmmmiaslkflieaoornroo.fafkTfvfIol&tamteMofteleixixsivribetbhllieeenctpcebaarrblieoleneraatapncnpdodlmicccpiararctnuiuyiotnro.ysf.tPIP&ahurTrsesIugnalnnootb1vta0oalt4aaiouSSnthhoaTmareoreecthhhioovnlleoddleeomrrgassryAkAEeggtrnr.eteweeLmmi&ceTkennltuft,,lne3gMdMsuanmpmdaaeHrrkiokelntdeeiftdnotgethhbdAeaknfftirkiremnrn'p'gssieflsclseaytltlschaft papfrlorveotxeteietcbchtlteeiiooCwnnoiirimnninpAAgauusgngyuysusttsethtm2e20s0i00gf6o6h,r.AAasu0stpsopamarlrtotbtofiavfcetitsinaiatsgegrrrieeoieermmraeepnonptwtltnitcoeoaprptusiuorhrncicshphatnaosseeethttehheegslsohihbnaaarrTlees&aouoMftfoTmTtIIoo&&ttiMMhv,e,otmthheeaeCrrkCoieomntm.vpeIpas&atnTonyrysfwiwlaerasdosmagrwpraaehnnttoiteteimddona3pfpMuoutrtabcooaqppntutikiioorrnnue,,pdwwthichysiicc1hh9 papgepearpvrccreeeontnxhtiteiminnaCttteroeremlesystpt.$a.Tn2Thy5hetmhpipeluultritiogoonhppttotiiftoioonnssbbeeilelccbaanammcevekeeietxxserersfcncristsoitaramebbmlaoeenwJeJeanaonenfnurutsaahhrtrieyyp 1i1in,,nt22e0v0re00es7.ts.TiTtbnhahoTeserCI&CosoMmmipntpaoBanenthlyyegeexioxeutremhcreciirnisseiFenedvtbethrhsueteoaprprsytuft2roo0op0pmt7ti.ioownnThaoannmhddr3reeMeccoaowavvceeoqtrrueeTidderIe&drMit.s 19 iaainppvppnerrsootxvxoiirmmsefaaftortesoelmlmyywt$w$h82oh.o5o7mmmrmii33llsllMMiioponpnuuortrcfhchirhtaosaussigenehdvdetiishtstemssbhheaananrrtkeerfssruhohpamtavcveyoenpfleriloeeocddfestahsbeabaanninnkdkvrreuiusppttpotcurcysyrpbspiaeesnteigitdironinn eiiBnneAAclugusiouosttrfmriitvaai.h.nTTeFhbhaeeelrbCarCnuoycoamemrpypao2afn0niy0ys7e.ixpnTpevheecesctttsosmteth0noetrrr,eetcfwcoosovv,eeTrrIf&rMohme sfaseepillpllseerrorssrx"'eimbbmaaaanirtneikilyaannng$dd8,v,.e7tosmeetxximiltleeeinonntntntntoshotrptormmuoagabddahebetwlhweheahobnoeadl,en,,kpspruuuarprsstrucuaeyansntputrlot0ocntetohhseseitamtenprdaemiisrsmomopfeuftnsrththsreueeinsSSehghraarvrreeeecohPPavuuserrbcrcyhheaaoessfeerthAAeecggobrreeadelenamdnt.ecn.et.oTTfhhietesCiConovmmepspatmanneyynbtbl,eifliivresvet,essfrccooomlllletehccettiioonn of its remaining investment is probable and, as a result, no impairment reserve has been recorded. 222 `TTiabblleeooffCCoomnteensts: Health Care Busines(17.0%ofconsolidsaeteesd: Health Care Business (17. 0% of consolidated sales): Sales milli1ons) Sa`lSeSaas`lle(eOmssrgccialhhnliaiaoncnnglsge) aanonaallyyassiiss::lsclesu(vroluemeanndcpriyc) AcAOLqoucrgcqiaausnliisictciutiiloroonencsnsacl-ycusrlreenscy sales (volume and price) DTiaLDvnoievdcseaitslt-tuicitruuoerrrnesesncy sales Totalsleschange Translation Total sales change e ST e oom w 5 e ami 5 2010 2009 $ 4,521 $ 4,294 $ 40%4.0% 121.2 s2%5.2% (0.2) 030.3 sa% 5.3% 27% 2.7% 030.9 36% 3.6% ---ry(3.8) [= (0.2)% wm am 2008 4,303 so 5.0% 171.7 om 6.7% (0.1) is1.5 a% 8.1% OOpepreraratetiiennggciinhncaconomgmeee.((mmiilllliioonnss)) PPeerrcceenntt ocfhsaanlgees Percent of sales sods $ 1,364 $ 10%1.0% 02% 30.2% ass 1,350 $ fas14.9% 3% 31.4% us 1,175 Grom (37.6)% 3% 27.3 % "pTrTahhceetiHetiseolantlethrhsCC,aaarnreedsseheggammelenntitsnseferrovvreemssamsmaorankrkesetytsssttethhmasat.t inPnrcdolududecetmmseadenidcdicsaealrlvscilciineisscspaarnnoddvhhioosdspepiitd0tatalless,s,pphhaaarnrmmdaocatceheueutrtiiccmaaallrs,k,eddtesenitsanlclaaunndddecomrretthdhioocdanoltnitaicncd surgical pSpsruroaupdcputplciitteiposs,n(lkseokriisiann, eahchenaesadalrlth,t)hheaeaaltnnshddtiihinnnfffoieenrccmfttoiiaorotnnmiaopptnrrieesovvyneesnsntetytmisiootsnne.mppPsrr,roooadddnuuudcccttfs,s,oabidnnashdlaaafsleteatrtiivyooipnncreonasdndpudcrotrtrvsna.isndsdedederrtmomatalhleddrsreuuagndddeeollitvvhererryymssyyassrktteeemmtsss,i,nddceelnunidtaaell ndorthodontic medical and surg and orthodontic ical products (oral care), health information systems, and food safety products. Year2010ress: Year 2010 results: Pips eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ama 21/114 7157588..00002211 zane 1/13/2018 Migsohcivesadg Gat OTIOOIOUSEHIAIO2O08T0_AHOSk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm AHHezeaalaltthnh CCIaanrr.e allocoqccuaaill-s-cicutuirrorenenniccnyytsshaallfeeossucirntrchereqauasaseerdidr55...22Aippzeerarccneetnnt1t,, ciincnilucedildnguiandbbgeiennemnefafignittuooff1fs.1c.2h2rppeeeorrcfcepenantttfifreroontmmwaaarccmqquiuinissgiittiisooonnlssu,,tpporrniismmdaarerisilliyygrrneeelladtteefdod pttorhetvheeent hIAhoyrcpiyzaoaltnhpcteurIromnecni.atcaiyicnsnhqslsuueuriessrggiitgicricroaaolnlmwsistenehtittt,thiinenoaggdfsso..CubCuryturhArrrqseeunanaccrPyytaeicrimm.ifpApiacarcictaztsnasdniintnLcIcanrrteceia.ansAsiseemddeasrsllaeilacesdasibnbCgyyanm00a..a33dpnaepu.refcraLecconetctuna.rtl.eOrOconunfraapgnaegetoeiyegosnrgtlarawpephsahirgimccrbobianwasgstsihss,o,walaaulltlsirorbeenrggosiiaooddnnes-ssbpipagosonsesetdtdee,ddtolppodposbrisetiytviivevseneitn alnocdawl-ocuurnrdenccayres,adlers dgerolwivthe,rlyedsybsyteAmssi,ahPealcitficinafnodrmLaattiionnAsmysetreimcsa,/Cinafneactdiao.nLporceavlecntuirorennscnyd orlcre sales growth was broad-based, led by skin and wound care, drug delivery systems, health information systems, infection prevention and oral care. O5Opep2err0uaitimnniggliilnnoccnoomrmeeeilnianctcrereoedaassreeeddst1r1.a.00ctppuereircrngecnatcetto0nio$$tn11s..4i4nbbi2il0lll0iio9o,nn,,waainntdhdotophpieserrhaaiatinrngggeiincnccoomomeemmmaragrpgiofinnesrswmweprleieroey3s3e00e..e22eppteedrrdcceneat..HiHeelaallsthhCCfaoarerserereevcceoorrrddaeedndcncchhdeaarrggeess {abboeeftnn$eef2afi0pittessmr..tiLiLlnlooigowwneiernrryecyeloeaaatrmer-ed-oomntnao--ryyregeeaisarntrrsuHHwcIi1tNulNTrl.ilnB-rrgeeellanaactttteieohddnssashaliilenegsshp2pe02en00nas9al,,liwi4zz3ieetd3dhbMbthtcoiothshnctsshiaaalnlereugsseeaasnncfododmioonpppvereerirssaatettdiinn0oggfgiirennomccwopommlhoeeiysiienneu-22sr00ei11l0ca0.st.esd33.MMli'a'ssbilalointnigegs-teferormmr seeevxxpepereaccnatactetiiooannndiiss that operating income margins will be in the high 20's, as 3M continues to invest to grow this business. Year2008ress: Year 2009 results: nI1ne2a20r00ly099a,l,lsslbaeulessiswnweesersreees$,$44.S.33abbislilllgiioronon,w,tuuhppw33.a.66splperedrccbeeynntttiienllnooeccacaltliccouunrrrpeernneccviieecsn..tTTihohinissaggnrrdooswwitthnhwawanasdswbbroroouasnd-dbbcaaassreedb,,uwwsiiittnhhepsposoessstit,iiwvvheeiccoconhntrptriribobuvutitiidooennass mfrruoolmmtude COnouFefeapprrnrloycodauydlcslutabscluttetshhsiasnagteriismsomeppwsrr.ooSvviaelepphsaeitoginrreonatwtlttrcrhaeerawsettbmamusesnlniettndoeobusutyst.cctoohOmmeneeisnsafgaenncoddtaiocipnnrchperieraeascvseeebnafetsfiiifocsinc,isieaenlnncdcsyysfgkforoirnorhwhaetenaahdllttwhthceocasuarnrweedepprcrreaoorvhveiiibdgdueheserrsis.n.tei33snMMseAsasa,lilswaoohdPdaricrcoohivvfepieprcoop,svoiListadiitteviivenaeAmllmouoecclrataiiltl-cuade and Canada. currency sales and Canada. growth in the oral care business. On a geographic basis, sales growth rates were highest in Asia Pacific, Latin America bHHeeaailltthhlCCaafirreorresececovoerrdrdaeenddcccehahanragdebrsoeogfnfee$2f2s0.0mimIlnill2il0ioo0nn8,lrtelitastedbdustoirnoeresestsrstueucgcthumrreiinnntgg raaecccttiiooornndssediinnc22h00a00r9g9,e,swwoifittShh6thh0iissmccihhlaalrroggneerccooemmplprriiefssoeerddeosoftfreeummcptlpuroloiyynegeeaen-redellaaettxeetdd Calaihccaatbtirvigilieivttsiiie,es,s,ufplporrriiymmseaeaarvrrieillroyyapcnecrocoaemmtpiaprnngridissbieeenddncooeofffmsisetvese.vinreInraHan2enc0ace0eta8han,nCtddhairrrseeebllagauttrseeieddnwebbs1es5neespefeignrtsmc,eebebnuntuttft1raaeil,sc$s1oo.r3dii5nbencidclluhcldhiiianonrnggg,e$w$s11i4ot4hfmm$ioi6lpl0ellirooamnntiilniilngnioaanissssnreeecttloaimmmtepedpmaaatimorrgmerienensnsstrts.uo.cfIItunn3rcc1ill.nuu4gdpdiieannrnggcdtethehnxeetssiteein 209,charges, 2009. full-year operating income in Health Care grew 15 percent to $1.35 billion, with operating income margins of 31.4 percent in E23B `TTiabblleeooffCCoomnteensts: Displayand Graphics Business (14.6% of consolidsaltee):d Display and Graphics Business (14. 6 % of consolidated sales): SSaalSleeassle(msmilcillhliaioonnngsse)) analysis: Sa`AlOeOcsrrqggucaaihnnsaiiicnctgilleooncasaonla-clyuasrirse:lncyscslaelesus ((vvtoolluuemmeeanannddcpprriiycce)) DiALLvooceccqsaautkli-t-scicrutuierorrsneesnnccyy ssalleess ToTtDTralraisavnnlessselatsaiittcuioorhnenasnge Total sales change OOp"epPreearratctiiennnggtciinhncaconomgmeee.((mmiilllliioonnss)) PPeerrcceennttocfhsaanlgees Percent of sales smo 00 2010 2009 ST owm ms $ 3,884 $ 3,132 $ 2023.0 -- mon 23.0% ---101.0 0% 24.0% Gon (5.6)% 282.8 [23 (2.8)% ---a(1.4) wan (4.2)% s$ o90436s%s$ 2519300%s$ 24% 60.3% 115.3%% 24.4% 18.8% som2008 am 3,268 sop (18.0)% 010.1 od (17.9)% 3)(0.3) 161.6 Teepe (16.6)% 8583 (oops (50.0)% 8% 17.8% in"TcThlheuedDDeissipolapsyiaaanplnddiGlGrmarapaphshioylcicusstissoenggsmmfeoenrntLtssCeerDrvveecsslmmacrtakoreknteistsdithhsapatlt aiinyncscllucudodeempeeulleetccettrrrosonnciicrccddinissppflliaalyye,,rtsrraarffefffiilccescsatafifevetetyysaanhnddecconommmfeomrretcrricaainalslpggorrraatppahthiiicocsns..sTTihyiss;sseeggmmeenntt cpicnroocommdlmuumedcrteecssri,coiaaapllntgidgcrracaaloppfmhhipiilucclstsesshorheleupsertitiiionnvnagsacayfnnofddriseLsryyCss.sDteTtmehelsee;mocpatasrtnno;iddncimmacloodbbfiisillpmeelbaniuynesstrei;srncaceoctsmtisivvppeeruostsveouirlduisetcoisroennef,sn,mfiisinlnctectlruhasdit;innrseggefmlrmeovcbotibimvlimleeecdsrdhioisespuepltslaianyymgaterfesokchrhentntorosallneoosgggpymyo,e,rnvvttaiistssiuouoaafnlltssshayyefssetltteyecm;mtssonic edpdilrissovppdillusaaciyytosiinn,nsddauun3ssd)ttrrhcyya.o.nm33dMphMuepltperdrroodvpveirvididiveecsaescdydiissfstuitliictnnehccrtst.ppcrTreoohddleuulcoctaptssrtifpfcooahrrl ffofiiivvlsmeem4mba)uransrkiokenteteetssbsesoegpogmrkmeonPvetnCisdts,se,siainnfncidcllml5uu)sddiaitnhnugatgptoprmsrooeodtrdvuiuecvctentssudimffsooprer:l:raoy11us)).sLLmTCChaDDerkcocepoottmmispcepuagultmbteeuerrsnimmtsnooeonnsfiistttoihrnoescr2el2)slu)edcLLetCrsCoDaDnic eutnexulcemvlmbuisesiroiobonvffisitd3eoyi)rffh3eearrMnetdnfthopeplrrradoodduduumeccvbttisscetetrhhsaoasfttuasacrruhecpaphrsropocrtteeoledcluutsecltadtbrseb.pydyhAvovsanarsreiisooomu4ues)sponpafoatttee3onbMtos'sosaakannpdPdtCiggscrolarunfpdisoo5mo)fufppapueeapttnnoemsntst,osbt.igvTTeihhenedstsieesopppleaaaxtytpeesinn.rtteTsshpnpertroohovvpeiitddieeceavvlaabrrfxuyyesiiwninnyggeetasleesrvvsilen,lscs3luooMdffewsilal Hteliixkkceeellluycysssiveeheeitnymmaotooonrrdee3lpMccroooodmmfoigppsreteaytsti.nitiuoo3mnnMb'iinensrptthorheoefsspseeruipcprthrooapddruruycotcdmstus.a.cntu33sfM.MaAccctsoousnrnotiimtnngiueeneosucfthoeo3nMoiinnl'nsnooogovvypaatttaieecnadiilnkfthniheloelwaap-rraehataoeonowaftaflsposbpioetcpgicarianlolvtffoiiidlleelmxsspciaaronnemddpineffiittlleihestseippnvaaeettxeeatnndtftssevwaoonnntyaeittgassresnn,0eew3wM3Mwill independent ofts pnts. technology and products. 3M's independent of its patents. proprietary manufacturing technology and know-how also provide a competitive advantage to 3M Year2010ress: Year 2010 results: Pigs eihciesodgr Go ADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ma 22/114 11775588..00002222 zane Migsohcivesadg Gat OTIOOIOUSEHIAIO.2O08T0_AHOSk Hom 1w/1SaS3aa/s2lle0ees1n8iitnnirDDeliysipolragsyaananipncdd.GlGFroraraapephihigyicncscwwuemehrreteetnpc$$s3y:3/./.w99ibwmbiwpila.lslcieooctn,.g,iouuvpp/nA22r44cc.h.00ivspperaeeslr/reeccesdeegnngtaatyrry/eodewasaatrtrah-/beo66ny7-yy4e10ea./ar00r.0.p0eSS1ra1acl0leee4nss6t5.iin9cS1car1rle0eea0sss7se8rdd4o5s22e/a33.i1.0n01-lp2pl0ee6rrb0ccu_ee1nsnt1it0niikne.hslotosmc,lalwccuurrterehni enccisieoessn,,h gwwehhsiitcchh prwgrtoaoscwwelthnhtfiiirinnell33mysMMo'f'rsosgraooLpnptiCticiccD.aaFTllVosssryey,sistgelntmoecscuaaarnr-neddcncuccoeyomnmmicmemyrpecsaracicltaiesalslingwgrcrearaerppahhistiecclsdslbubsuasupliseminsneregsserssoeewsst..thhaIInnnbytt1hh0e1efp.eo0forupucreertrtnchhteqyqnueutaa.arrtrS-teaeorlrne-oosfyfre2o2a0s0r1e1.00,Sin,awlwahelhisllibileenus2ssl0iane1lees0sssgwgeersrroo,ewwwtutihhtphmmtsoholdediegesrhrtarattoyteeniddgneiitnsnhte rptorpaaetfifclricalsssfaaiofflementtysysafsyoylsrsateiLnemdCmzpsDsrbaibuTvtusaVsiicinsny,eoefslsoosnscaaanmnl-oddcbummirolrobeebindilcleeeyviiisncnatteleeerursaarcwcsttiei.vvreeeGssseotooillgluulrttauiipopohnnimsscoaddilrivevliyists,hiiooasnnns,w1sw0hihgpcirechorhcwfetfoonhcctuwuysaseeesassrok-oondnnpb-rpyyoreodaAdursuc.ictSatssaPtlteahhscaaititfniiim2mcp0pLr1raoo0tvviweneperpArormejoeeujecrpctitisicoloinang,,/htClyaninatdhasen,d heUnitedSates. personalization and privacy for mobile device users. Geographically, sales growth was led by Asia Pacific, Latin America/Canada, and the United States. OpmOieplrleiuraoitninneggliinntccoommtoeereiisnntr22u00c1t1u00ritrnogtaaaelcedtdiS$o9n94s46,6wmmiitlihllliioohnni,,soocrrh2a24r4.g.44e ppceerrccoeennttmoofsfpaosalfleeersms.plIIinnoy22e0se0.90re,etihu0sidesbdbu9usbsiinni,eesslsssesefggomrsteenvtrereerccaoonrrcddseeddannedebttecncehhfairagtesrasongofdfSe$f22si22xed ast impairments. million related to restructuring asset impairments. actions, with this charge comprised of employee-related liabilities for severance and benefits and fixed Year2008ress: Year 2009 results: SI1na.2l20e0009g9,r,essawallieenstirinanfDfDiiicsspspllaaayyyaannyddsGGtrearapmphshaiicncssdddaeepccillciinaneleddsy44sppteeerrmccsee,nnbtt t0to5d3$e.3c.11lbibnieilldliooinn,,caoanmnmddeoorppceeriaraatltiingngrgaiipnnhccioocmmeeinitnchcrereegaalssoeebddal11.3e.3psepesericoennrtsti0ocgSn$i95fe9i0c0amnmintllilyiliotonn.. Slowedspendingon Sales grew in traffic slowed spending on corporte advertising. safety systems and optical corporate advertising. systems, but declined in commercial graphics as the global recession significantly 10$In2220200m09i9,l,ioponep.resrTattiinnggheiitnnccaioogmmgeremesgmaaratreggicinhnsawrwegreereien11c88l..8u8pdpeeerrfcciexene,t,anneceggtaattiiivvmeellpyyiaimmippamaccettoeenfddSbtb1yys300..m88iplpelerorccneenantntaadggeeempppooliionnyttsesdeduueeelt1aotnendtetsrreeessvttrreuucrcttauurnriinengg/cbchhaearnroggeebesfseoiorff a5o$c2ft29$i9mvimmiililisillolriinoeo.ndnT,ucwwhehihsdiinccophheetriiaasetgricgenrcgoeogirradntdecedoecnmnhedeeatrbogoyfef aai$nds4cj2tulusmmdtiemelndleitnfoitsnxs.etoTdophparesresesveevitioeoiuxmuspsleplynyasirrreemesccweooenrrtrddseeeoddcfrree$ss1ott3rruumccmttiuulrlripiioonnnfggsraccenhhvadaeirrreggameenssscp..olonIfneyele22ue00dt-00re8e8d,l,arbreteessedttrrsnuueccvtetueuarrfrianinnndiggcaetscc/shhbstaae.rrnggeeefssiatsan/noddtheeexxriitt iamcptiaviirtmieesntrse.duced operating income by $42 million. These expenses were comprised of severance/related benefits and asset impairments. 624 TTableiooffCClooennteesnt.s ConasndOufficmeBuesinress (14.4%ofconsolidatedsales): Consumer and Office Business (14. 4 % of consolidated sales): SSaalSleeassle(msmilcillhliaioonnngsse)) analysis: Sa`AlOeOcsrrqggucaaihnnsaiiicnctgilleooncasoanla-clcyusrirase:nclysslcaelesus ((rvvoolltuummeeeaannnddpcpririccyee)) TALLrooncccsqaauullit-scciiuutoirronrenensnccyy ssalleess TotTalrsaanlselastciohnange. Total sales change ows sam 5 2010 2009 $ 3,853 $ 3,471 $ 77.1 252.9 00% 10.0% 101.0 To% 11.0% am (3.1)% 262.6 Oo (0.5)% a9(2.5) GO(3.0)% am 2008 3,578 sm (0.8)% 151.8 Ton 1.0% 141.4 20% 2.4% OOpPepereraractteiinnntggciinhncaconomgmeee.((mmiilllliioonnss)) percentofsles Percent change Percent of sales s 0s ss o $ 840 $ 748 $ 683 13% 0% asp 12.3% 9.5% (3.8)% 2m 2s 101% 21.8% 21.5% 19.1% "aTTnhhdeeCtChooenrsnmuamsskeerautansnd.mdOPOrfeoffdfiiruccceetssseegngmmteeinnsttssseeegrrmvveeessnmtmsiaknrekctleustsdtethhoafatftiiicnneccslluuupddpeelccyoopnnrssouudmmueceerrsre,ettaaalitl,,ooonffffeiceeprreaotadliel,thhsoo,mcmoeensiitmrupmcrtoipvoenmrnenodt,hbbvouuimilleeddiiinmnmgpgmrmeaoiavinennemtenetnsnantn,ccee pCparonronoddsduuoucmtcthetsesrr((bmddeooav-triiktth-e-ytycsooa.urrPressreeoplldr)fo)u,,dchuotscomtmisnee.thcciaasrreeseppgrrmoodeucnctstis,n, cpplrruoodtteeeccottifivfvieec material e supply material products, products, products, cra consume etal personalsafetyproducts,und stationery products, construction and home improvement certain consumer retail personal safety products, and consumer health care products. Year2010resus: Year 2010 results: SiSanallceelsuiidnnCeCdo7n.1opseurmcneenrtaannsdrdOoOfmfufoifirccgeeamnicnirccgreeearasoseewrddt1h111.n.00dpp2e.r9cepeenrticriennn22t00fc11r00o1mtoesc$$q33u..ni9sbibiiilltollinioosnn... ALLcoqciaols-icuicrornenagcryoswlstlahlesfs-onrin2ecc0rea1a0suweda1sr010p..0e0epipeaerrrnclceyenc,tco,wmwhphiyricichshed of 1cticohnnecslJuuuudlmleyyed2r2070c.001h99apsnaecncraecqpleuisnisstitinfitrioNoononmrotofohfrAAgACarCneEEircicgsrnao,ndwadntrhedellataahntteededd2Abb.pr9rraapninedd2rssc0,,e1wwn0hthiafirccqohsmusleialsclssqiueiltasaoiisfsttiiocochnbnebsa.anAnAd-dacOagqngeuee,i,bsssriutuaipopnpnpodoregtrdrtsosawnabntdhldfttbohhureser2imrn0e1mos0mos.rweteIaensar ppprirroiomddnuuacr,ctitlyTltinhcseeosmttphhrrrioosueugdghhof aJccJqaaounnniuussauairrmtyyi2eo2r0n0sc11hl00aenaasnccqqegulrusioissiwinittiiNhoo.nnooFrootfhfrIneAniccmgaanvevcarauisscrarIn,neadnnucddystitrmhiapeduadAeceCtpCasrsibalaob2dos0dts1ee0dVVaa1.i0caspqsssuooiuasuerirtaaisosrnLLfotiodcfaast,.h,eeeaasAmmg-nraOanonunwteftaubhcrtfaunraderecodoftflfaflublooeorlrrbcecuaasrrrieneeppsrrsoo.ddIuuncctatssd,,dccitooionnnttr,ribtihubetuetdettood acquisition sales growth. Foreign currency impacts added 1.0 percent to sales growth. sa22t00i1100onssraallyeepssrggorrdoouwwcttthhsw.waOasnsbbrrogoaeadod-g-brbaaaspseehddi,,cblaesdibbsyy,osofafflfieiccseegrssouuwpptplhlyypwrposrodduucedtcbtss,y, cAcoosnnissauuPmmaceeirrfhhieecaa,lLlttahhtccaiarnreeA,,mhheoormmiececaacCraareen,,adddoss-aint--dyyotouurhrsseUelnlffipptrroeodddauSccatttsseaasnn.dd. stationery products. On a geographic basis, sales growth was led by Asia Pacific, Latin America/Canada and the United States. Pips eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm a 23/114 11775588..00002233 zane Migsohcivesadg OGoTt IOOIOUSEHIAOIO20T80A_HSOk hom 12/1CC03/o02n0,s1ou8hmiesrbnaaunnsdidnOsOefsffsfiisccueegoopmpeeermnartattriineneggsaiinhndtccetrpoodsmmc:e/h/ewaiwirnngwcce.rrsseeeaacoss.fgeedodSv111/23A.23r.cm3hippilvleeeirsroc/encedneegtntattotro/ddS$a88ta44o/6006rmem7is4ilt0llrl/ii0uooc0nnt0,u,1r1wwi0ini4ttghh6a5cpo9tpe1ie1ror0naa0sit7,inn8wg4gi5tii/nahnc1co1hoim-m2s0eec6hmm0a_aar1rrg1gge0iiknc.nshotmooff22m118.8ppeporrefcreceienmntpst.l. oIIeynnede: related bili fo 2009, this business severance nd benef. segment recorded charges of $13 million related to restructuring actions, with this charge comprised of employee- related liabilities for severance and benefits. Year2009ress: Year 2009 results: bI1ont2h00r0e19ta,is2slaalcle0oesnssd0dueecmc9leliirnns,eeadd 33d.0.0pcoepmremcreceernncttitoaol$$c33u..5stbboiimllleliiroosnn,f, oppraarmrttoiiaaslltlloyyfddutuehetetoyoraogrra.gnaIniniacc dvvooillutumm,eecddueercelcinnlceyisofonfefe3c3.st.11sppdeeerrccceeennatt,s, edddrirsvaelniebsbyvgyroloeowwwtenherrsbspypee2nn.d5diinnggbbyy ppbpeueorrrtcchceehnrnaetts.t.aeAAidclcqFcquouunirisssouiit,mioonenrsssdcocainontnndrtgircibobusmututemepddpelr22c.e.i66aolpfpecebrurrcsacetconeemtsn1t,eto0srus22p00fpo00or99rmltloosoaacsnlatdl-o-ccfuuctrrhoremeenpnycrceeyyassrass.laiIelonesnsa,,hdoladasririgtgeieroeylln.yy, rcFIeueJlraulrteletnydect2tydoo0te0tfww9f,oeoc3pptsuMurdrccpehhuciarrsesceeahsssa..esdIenndsDAaDelCeecscEregmbroPbewrerort2dh20ub00c0y8t8,s2,,.353aMMne of S{ptuhhuecercesshteoraosnsnfeggdlbccFroouanntnussdurusomm,,eeparrrlohheveeaiaaddllitenthchgccrsaaurrieeppsbblrrimaaenanrddsosssf,,biffrnraootcmmhesBB,eeestcucattpolopnnor,,rDtDgsiicacktnkidionnecssooocnmnhaaapnnnreeddslsCC,iooomnmphpaoannsyiye..ryTT.hhIeensseeJuiilnnyvee2ss0tt0mn9e,tn3stMs,,ccpooummrbcbihinaneseedddwwAiitCthhE33MM'Ps'srooodwuwncts, one of successful brands, provide critical mass in the retail drug store channel. OrOepceoprradteindegciinnhrccaoommreaeogmfmae$atr1rsgg3iminiinslwwleoenrrneeaalgta22t11e..d55tppeerrrcceeesntntrtufocotrrurttihhneegyyeaeacatrri,,ounupsp,oowvveierhrt22ippseerrcccheeannnigtaaeggceopmpiponrintitsssevvederorssfuuessm22p00l008o8.y.eIenn2r2e00l0a0t9,e,dtthhliissabbbuuslsieinnseessfssosrseeggmmeenntt Sreceorvdeed carhnaadrgbeennsecofifte$s.132m00il8lioinncrleuldaetsedS1to8 rmesitrlucotuirnirnegstarcuticotnusr,inwgcithhatrhgiessc.harge comprised of employee-related liabilities for severance and benefits. 2008 includes $18 million in restructuring charges. 225 TTableiooffCCloomneterenst:s Set,SecuritandProseton ServicesBusiness(12.4% of consolidatedsles): Safety, Secu~ty and Protection Services Business (12. 4 % of consolidated sales): SSaalSleeassle(msmilcillhliaioonnngsse)) analysis: SAac`lOqeOusrrgigcsaahnniaiitcncigolleoncsaaonla-clcyusrirsea:nclysslacelessa((vvootlluummeeeaannnddpcpriricycee)) DiALLvooceccqsaautlli-t-scicrutuierorrsneesnnccyy ssalleess ToTtDTralarisavnnlesssealtsaiittcuoiorhnenasnge Total sales change Ee 2010 $ 3,308 SE 2009 2008 $ 3,064 $ 3,330 6 0 a3 6.3 12 23 109 1.2 75% nn 152% 7.5% = 9) ax -0s as is 0.5 so% 0p 2% 8.0% (5.0) 2.3 (2.7)% (0.9) (4.4) (8.0)% 4.3 10.9 15.2% (1.8) 1.8 15.2% OOp"pePenerriactniengngticinnhccaoonmmgeee.((mmilillliioonnss)) PPeerrcceennttocfhsaanlgees Percent of sales s ms ms 9 $ 707 $ 724 $ 689 0% 1% 203% (2.4)% 5.1% 20.3 % an nen 7% 21.4% 23.6% 20.7% "oTThfheweSoSrakafefterytsy,,, SSfeiecccuurtiirtiotyynaaannnddd Prsryeoscttetecmitsio.onnMSaSejerorvrviicpceresossdseuegcgtmmeoefnnftet srsieenrrgvvseessncaaibburrdooeaaddperrraasnnoggneeaolofrfmomaerackrkieetotssnttrhhaaotidinnuccrcree,aasssaeftethhteyesasnfaedfettyys,,cssueercctuuryriitptyyraoadnnuddcptprsroodducutcitviviittyy (iso(niofcnhlwcuultoudoirdnknisneg,rgsba,bonfordarrdcdoeieolrirftaiiaennnsgddagccnirivdavinilsluylssseeeteccsumufrroisit.rtyyaMsssopaolhjlouuatrtliitpoosnrnhoss)id),n,ugccclllteeesoaa.fnnfiiIennnrggtinhangnssddcipnpcrcoroltonuetdcdetecqituopioanernrpsproronoodaduflucp2ctr0tsos0t8effooc,rrt3iccoMoonmmcpmomreomrepdcrlucieciatatlsle,deesssatttfaaeebbtllysiiassalhhenmmdoeefnisntetsscs,,uHrtrriaitayccgkkpharauonnmdddupctrrStaasoccfeetware ibbsduoueslsuininntiieeofssncsssa,wwthaohninidcc(hhrRpopFrorIofoDvmv)iigddteegeddrcsahsununpuoppllpeloslygyfycocthrhoaaaipisnnrpeohevxaxicledtecetsuhitioinogngnlesssoor.fftItwnaaaotrrheaee ssyswoelolcuufotiisinooodnnlsqu..ntu33iaoMrtnMegs'srs--oTTfrrfaa2rcc0kko0m8sa,nnb3ddrTMaTrrracaycocpeemaStoSprllooeulntutetidsiooentnlhsfse-ucsthaliellieiczzkeoeorufrataidtdssiioyoHsiffgrtreheeqJqmuuutmeosennpctcryySaockftiwngare packages identification packages. (RFID) technology to provide a growing array of solutions -- from library patron self-checkout systems to tracking Year2010ress: Year 2010 results: SiaSfnaefcetltyyu,,dSSecedcau1.2 rritypyearacnneddnPtProbrtoeetnecectfitiiootnnrSSeoremrvsviciccqeeussisssaaliletessoininn.ccrFreeoaarsseeeidgdn88e..00xpcpheearrncegennettiiimnnp2a20c01t10s0.a. LdLodocecadall0--.cc5uuprrererennccecyynstsaal1leessaggsrr.oowwTthlhewwaaaess7q7s..i5ptpeoernrccebenentnt,e,wfwhihiticpchrhimary rrrineeellcaalttuteededdeptdteoooatptwl1we.o2.fmfpoooeunurricnttehcn-qrqtuiubanaregtrnteeerefr2cit20h0fn1ro10ol0moagaciqcaeuqcsiqusuiisuitisetiiitodoinonfsnos,,rsn.noaFafmmofeereelnlidyygenAArmetttoxeencnihnttiaonHHrgoioelnlddgiiminnapgpgapsslcSitsc.AAaat..diaodannnesdddCa0Con.g5odegp1neentrtcanIsensnccit..stAoAidtstteaerlneectsai.rHHTeoohlfledadciiainnclggiqtssuiSeiSssA.iAit.ino. mnisabnaeinsstuueoppfpiiptlnlipigeerrriamnoodfafrily eCreneanhmfahonaorcntieecneipngmeegtontptheleeag-ssmeaanffoceeintteyiytsooo,frpfianapntgadettinceetoncsmht,smn.eoCCrloocogiggeaieelnnstteuI1snxeccd.eiifsso.sra.oppfrrfooevvniidddeeerrro-moffoffniiinntggoeerrir,n,pgpaaalpm,p,liffcaaaccteeiaoannnsddainridiss biometric systems or governments, aw to assist eldercare facilities in monitoring biometric systems for governments, law and enforcement agencies, and commercial enterprises. 3r3M oMv'sesselecocuucrraiitltyycsusyyessnttecemmyssgbrbuouswsitinhnoeesfss eleeaddr22l00y115000sspalelerecsseggntrr.ooCwwottrhhr,,ohhseeilloppneeddprbboyytsetsctrtriooonnnggoporrroggdaaunnciticcs,vvooallcuumkmeeanaadnnddrasaccqqeuuipirssoiitdiouocnntgsgrr(oohwwetlthhpe((dCCbooyggaeeqnntutinIsncict).)ittohhnatt pdgerrrrooosvwowenthhalolreceplalraalo-tttceeeuddctrttrooeiAonAnctptyrteeogndnrtuoicwHHtotsohlilddoniicfnnrnggeessaaSsSr.le.yAAd.5.i))na0a2npn0ded1rb0cbue,uindlilted.dsiiCpnnigogtarearnnonesddgicoacontomimpmvremeoryteecerciactraiia-ollonssnepe-rrryvvoeiidcaceuresicsmtsaap,slastocortwaswcekfeeraoesnmtdstrrtoHoranIncgNgecToc.pnortnoIrtdnriduibbucusutttstrooi(rrahssle(mtliopsneseldarlbseayslgsgarsrcooqlwwutsithsha.i.tliSSsoaonalelseoofsf IpiLnnaecctrrrsieoenaanAssameeleddprforioorcrtaettschhteenioyydneeaaAprrsr,,oihhdeeuPllacppcteeisfddiibcnb.ycyrEeauasssrteorodopnneiggnMi2ffdoo0udu1rrl0tte,hhEdqqesusatpurittAeefironroeiffrgc22a00t1eai10vl0o.es. ygGGeeearoorg-ogroarnwap-phwytihaecihsacaarlllillymyo,d,pbllaoyocccCtaasellnf-crctuourrmrarrleeHnnEcc1ayyNs1ssaa.ElluIeenssrdoggurrpsootwrawitnathhdl mwwMaiiansdsbedbrrlaroeolasaaddssa-btblaeassAsefeadrdl,si,ocle.eddbbyy Pigs eihcesodgroTADOIOBSOIOOTASA-2060_1Ok Latin America and Asia Pacific. Europe/Middle East Africa sales growth was led by Central East Europe and Middle East Africa. una https:llwww.sec.govlArchivesledgarldata16674010001104659110078451a 11-2060_110k.htm 24/114 11775588..00002244 zane 1/13/2018 Migsohcivesadg Got OTIOOIOUSEHIAIO2O08T0_AHOSk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm OppapOpeeeppnrneraaurolaixlitziiinenmdzggabetbiiyednynlccyyyooeem6maaperrefe-ooorfnoncr-re-yyn22eet00aa11ryr00eHHawwIr1a-NaNsoTsn$l.-$-7ryr7ee0e0all77raa.ttmeieIddlinllcclaioonodmmn,pd,paowwrainiritis,tshhoofnnoassu,22,r11wwt..h4h4hpiqipecucerhahrrccrrieeeeenndrdttuu2acco0peepe1dder0rStSsaaiatqfinfnueegtgityys,ii,ninSSciceeoococmunmureerimeittmlayyaratgnareingddndin.cPP.oOrrtOpoostetpeereclcartttaiioitooinnnnpgegSSneiiearnnrlvcvciioiozccmmeeeessdedspsdeaaeecllcreellssaiinniggeernrddoog2ww2ti.4t4nhhcpprroeaemtrtereccs.esennbbIttyy,, r1ea22l0p0a0p0t9r9e,od,xithimsibsabibtuteuslisyiinn6eesfpssseosrsceeseggenmmvteeyernneatatnrrrce-eeoccnoao-rnrydddeeeabddrec.nchIehanfariragtgde.edTsshitoioifosfn$$c,11hf66aorummgrietilhlwll-iaqoounnsarrrr eteelalrtte2dd0e1too0rfraeecstl sqttbrruuuiysccittatuy uigorraiinnin-ggreaaolccaftttieoSodr1ns5cs,,omswwitislittlhhailohstnhosirspceechlnhaaaarltriggezteeoeddcctoohmoepepsramralisteioepndfgoroiMfnfc'icenomspmsNpleloeo.eyyIwenedee-- Jerseyroofinggranule fly related liabilities for severance Jersey roofing granule facility. and benefits. This charge was largely offset by a gain of $15 million related to the sale of 3M's New Year2009ress: Year 2009 results: 1cIn0u2m20e00n09c9,i,sos.all3essMiinndrSSoaafvfeeettyyp,,oSsSetecciuunrrliittyycaannddcPPrurooteteecctitioognrnSoeSwretvrhivciicenespserttoosttoaanllaeeldd p5$r33o..t11ecbbtiiillloinoopn,r, odddoouwcwnt,88b..00atppeearrlccleeonnttthiirnn dbdouolsllilaanrcr-steserermsmspsoaasntndedd2d.72e.7cppleeirrncceeesnnftot inhlloeoccaall llyear.The global econo downtum negatively impacted the industrialandconsrelautedtbuisinoessnes withinthissegment. currencies. 3M drove positive local-currency growth in personal protection products, but all other businesses posted declines for the full year. The global economic downturn negatively impacted the industrial and construction-related businesses within this segment. Despitethe8percentsalesdeinefor theyeas,operating incomemargin os 123.6percent.In 2009, hisbsinesssegmentrecorded wcDcaheshasprpagaietrrestotoglhffleSe$y181so66pfefmmreicitllellbniootynnsarrleegellsaattadeeedodcifttloionr1nree5essftotrmrruuictchttleuurreyiinenraggeral,acacotttpieioodennrosas,t,itncchgoemisonplcreoimsmoefedopmoffeaerrmgmpinlpisoloyryoseesee-rerteoellaa2tdt3eed.d6 bilitiesfo severance and benef. This charge percent. In 2009, this business segment recorded liabilities for severance and benefits. This charge was partially offset by a gain of $15 million related to the sale of 22%6 `TabTleoofifCCoolmnetreenst:s 3r3VMe1''scNNoeenwweJJeperrrsseee.yytrrxooooflfiomnsgsgogfrra$an2mu3lemiffaalccililloiittnyy..InIInnatdthdhieetissoeencc,oonn3ddMqqrueacraoterrdoeorfdf22e00se00t8r8,c,r3t3uM Mriccnoogmmcphplaleerttgeeeddsttahnhedssxaallie ofafiistcs HHtiiggihthJhtuvaumtmtippotSSatolofefdtetww1aasr5reebbmuuissilinlneoesnsssainanndd 208,recognized a pre-tax loss of $23 million. In addition, 3M recorded restructuring charges and exit activities that totaled $15 million in 2008. cIInonmJapunenteei2t20o00r099u,p,3o3nMMt'hseSSeeexccpuuirrriiatttyyioSSnyyossftt3eemm'sssDDiievvxiisisitooinnngwwaUassKnontpoiatfsifisiepedodrttthhcatotnttthhreeacUUtKK gOgcootvvoeerbrnemmre2en0nt1t0dd.eeccRiiddeeddettfooofaaCwwriaeatrriddciraistlsppAaacssscspopouornrtttipprnrogoddEuuscctttiiimooanntetos"a within "Managements Discussion and AnalysisofFinancial Condiion and Results of Operations" foradditionaldiscussion. competitor upon the expiration of 3M's existing UK passport contract in October 2010. Refer to "Critical Accounting Estimates" within "Management's Discussion and Analysis of Financial Condition and Results of Operations" for additional discussion. leckroandCommnicaionsBusiness (11.0%ofconsolidatedsals): Electro and Communications Business (11.0% of consolidated sales): SSaalSleeassle(ismlciilhloaionnnsgse)) analysis: SaA`lOeOcsrrqggucaaihnnsaiiicnctgilleooncasaonla-clyuasrirse:lncyscslaelesus ((vvtoolluuemmeeanannddcpprriiycce)) DiALLvooceccqsaautkli-t-scicrutuierorrsneesnnccyy ssalleess ToTtDTralraisavnnlessselatsaiittcuioorhnenasnge Total sales change m soe mm w voe s sawm m 2010 2009 2008 $ 2,922 $ 2,276 $ 2,835 m027.0 -- Tn 27.0% 03(0.5) 151.9 wan 28.4% asap (18.4)% 0s0.6 Wa (17.8)% 2)(0.2) an(1.7) Ww(19.7)% com (2.0)% 040.4 [3 (1.6)% ~-212.7 ii% 1.1% OOpPepereraractteiinnngtgciinhncaconomgmeee.((mmiilllliioonnss)) PePrecrceennttocfhsalngees Percent of sales s$ 9o66301 s% $ om3d22ys$ E574d09% 2961.60%% 142% (40.4)% 179.91%% 21.6% 14.2% 19.1% "lTThheeesEEll;eecctctrrlooctaarnniddcaCCloocmmomnamsntuiunccitacitaoitinoo,nnmssaissneetggemmneeannntct esseerravvneessdtrthheeeieel;leecoctrtrriiicgcaialnl,eelleeeqccuttirroponmnieicncstanmndadnccuoofmmcmmtunruiencsiac(attiOiooEnnMss)iinneddlesuctstrtrriiiecesasl,,iainnnccdlleuulddeiicnntggreoelnelieccctsrt;riicccaaollmputers aauanntuiddtlipotpeimeerasrii;rpphiehevlereraacanltlrssi;c;cmacoelondcnisoscunuasmmltereumrrcacterilkloeencet,trrsmowinaiicictn;sht;epnteeralolnedcccuoeocmtmamsnmudhnuairnetcipectaainitroi;aononbsrscilgecheinentnaretlaraflelqcooueffifpnicmc,eae,onnoutsutmstisiaisddneseuofplanalcaontnuftreaealrnnedd(cOteerEnitctMeaerl)prpresiolsewe;ce;trraaisscawawnledelallnsldaasseplaaeeetcrrhteooreossdppneaeailccciesev;,,decmmroiyimllioitpfaaurrtyye,rs itainneuffmtoooprremmmraoaatttitiiuovonren.e.aanPPnrdrdoomddduuiecscdtptisslcaaiiynlnccmallupaudedrkee,eceteslel;ceewtcriootcmhnmipcuiarnaoninddrcduaicitoitnisetoertnnhrccsaootipnnrennonecedacucbtctltesssoot,llhuueltteiieootfnnrfssii,c,cimaeilnicctptrtorraninenosrtmecdriocsuuonsninncodneneettcototsfussecy,ylhssettcesetmrrmisscs,ea,nlhispiggohahwn-pdpeeretrraoffnuoocdrrmhmsampanneocecdeentfishlude.isdds,e,lihivieggrhhy- of temperature and display tapes, telecommunications products, electrical products, and touch screens and touch monitors. Year2010ress: Year 2010 results: cEEluleemccettnrroocyaannFddorCCeooimgmnmmcuunniuicactiarotnisimsepaosalancelentsssswwaceedrrdeeeyd$$122.9.9pbbeiirllllciioeonnntiin1n022200011100,0,saaannleiinsnccgrrreeoaawsseteohof,f2w28h8.i.4l4eppdeerirccveeennstttiiinnreUUi..SmS..pdadooclllslaarrrssedaaunncdde22d77s..0a0 sppeebrrccyee0nn.tt5iipnerllococceaanllt. `mcSSuaaatrllrereesanelecxsxyp,p.aaFnneoddreceedditgiinnnoacalulllrsrggoeeehnooucggtyroraainpmpshhpiaiaccncrdrteesoggaiuidoocndnhses,d,slylo1esd.dt9bebpmyyesArAbcsesuainsatiPPtnoaaecc2sii0fsfii1,cc0awanhsnadidltcethhsheegcUarUocrwhnihitttahed,ddSwSlahottaciltaeeelssdc. iuSSvraaerllseeetnisstcgugyrrrseooawwilmtethhspwgawacratsoss wrlleeeddbuobcyfgyetrdthhaseetaelleerleseccbttthyrraoon0nn.i25ic5sspmpemaerrrcackereknenettt.ts.s materials, electronic solutions and touch systems businesses, which each had local-currency sales growth of greater than 25 percent. Pigs eihciesodgr Go ADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 2m 25/114 11775588..00002255 zane Miscohcivesadg Gat OTICOIOSEHIAOI O20T80A_HSOk hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm 3M a sew stron row inthe clecrcal markets busines. M's eco infrastructure related basicsincreasedslighty yer 3M also saw strong growth in the electrical markets business. 3M's telecom infrastructure-related business increased slightly year-onyear.year. OpcOepreouraitinnngg siienncccoutommoeemwwaeasess$tSr66e33d11bmmuisililllniieoosnnsieinnss22h00o110w0,eaod,r2s21i1.g.n66ipfpeiercraccneetnnyttoeofafsrsloaelnes-s,,ywwehhiiimccphhrwwovasesmsesinigtgnsni.ifficiIacnna2tnl0yt09iim,mpptrhrioosvvbeeuddsvivenerersssuussssllesagtsmtyeyeneatarrreaacsothrhdeeed consumer electronic-related businesses showed significant year-on-year improvements. In 2009, this business segment recorded cbehnaefr.ogfeS1s1 millon relietdo restructuringactions,with hischargecomprised of eployee elated ails for sverance and charges of $11 million related to restructuring actions, with this charge comprised of employee-related liabilities for severance and benefits. Year2009ress: Year 2009 results: re1Idn0u220c00i09n9,g,ssaaeslesswbweyer1ree.75$22p..e33rbcbieilnllltii,ooann,n,dddoodwwinvne1s19t9.i.77rpepesrecrrceeednnutct,,iwnwigitsthhllleoocscaablly<-cau0r.rr2repnneccryycsesnlatl.seTsdhedecelgcillinonibinnaggls117o.78.n8poepmreicrcecendntto,,wffnoortreeuiirggnncwceuuirrgrnehncecdyyrhtesraalvniaslltayotoinonnal businesses, particularlytelecom infrastructure, reducing sales by 1.7 percent, and divestitures businesses, particularly telecom infrastructure, commercial constructainodn reducing sales by 0.2 percent. commercial construction and utes. The global utilities. economic downturn weighed heavily on all OcOphearpartinogegfieSinn1scc1roommmeiefulflooorntitheheyyneleaatrtwgwoaasrse$s$3t3r22u2c2mtimulriillnilgioaoncn,t,iwwointisthh,wooippteerhraathtiiinnsggciihnnaccroogmmeceeommmaparrrggiiisnnesdooofff11e44m..p22lppoeeyrrceceeennt.te. lOOaptpeeerdraatatiinniggliinncscoommfoeeriisnne22ve00r00a99nciinenccallunudddeedd benefits. Operating income in charges of $11 million related benefits. Operating income in 2008was impactedby $7 million to restructuring actions, with this 2008 was impacted by $7 million in restructuring Expenses. charge comprised of employee-related in restructuring expenses. liabilities for severance and 227 TTableiooffCClooennteesnt.s PERFORMANCE BY GEOGRAPHICAREA PERFORMANCE BY GEOGRAPHIC AREA WChWoimhlpileaenS3yMM ammlsaaonunataiggleeisszeiisttssbgbueusosiginrneaespsshseiescsgaglrloobabadalallltyysaanandd.bbseelcieoenvdelasiriystisbpbeuuressfiionnsreemssassnsecegegmmmeeenantsturrreesesu.ulEtsxspaaorrrettthhseaelmmesoossatt rrgeeellenevevraanantltlmmyereeaapssouurrrteeoodffwppieetrrhfiofnromtrhamenacnec,ttehh,ee teCgsoeoogcmgrarpaupapnhhyisiccaaltasrroaeeraoauwtwihemlhixezepeeerosertgttrhheedeobsgffyriiannapatllhhseisacsalelaeecrsseu1tas0otdo33amMMtaecruacsssuotsatoodsmmieefcerofrsrnsedaanrarteregymemapodeagerdrf.eao.prAAmhpiaopcnrorctraeitiosomn.noeaofAsfuShtrhceeeu.psprEtroxoodpmduoeucrrcttstsssmaoolorercvscoeoamrmtpehopeglnoernenoenepntretassrlsalsytloirldoednpsbbofyyrotI3emdMMPw'ossinotoehppgieneerroatahgttieriooannpsshtitooc its customers are exported by these customers to different geographic areas. As customers move their operations from one geographic artheaat tgoeoagnmotphheirc, aMr'as. results will ll. Thus, net saleisn particular geogrracpahreincot indicativeof end-user consumption in area to another, 3M's results will follow. Thus, net sales in a particular geographic area are not indicative of end-user consumption in that geographic area. FcFiionnaagnncrciiaaallpiihnrfniocrfcamowaetriromenasreitalgatitneeioddf0ntioc33aMMioompppeearractoitonebnsyds iirnnvevaasrriitooruussuggceetooaggnurrdaarppoihhciinccrgaarcfeamass.issppnrroov2v0iid0d9ee,ddriiennstNNruoectteur11i88n..gOOspcpeeirraoattniin,nggpriintniccaoolmmlyeerrfeessfutlstsbbbyyya ain `ogoUnnenoissgtaaerlladeepssSohtoafictferesae.araellaIsnewa2st0eea0rt,8ee,,dsdiergeecncsrtrieferiuaaccssateenuddrtwliwynogroimkralcddptwwaiicoidntdeseed,opobeepyxreiarrtaetatsiitcnnrigugvciitinnuiccrsooinmmagenebadbnyaydISo$o11tsh99oe44rnmmitiesillmaliieoso.non,I,fnwwbu2iis0thhi0n9ttehh,seerseelrsasgt,rrgeuweschstttiucirimihmnppgwaaceactctrtiiipnonEanEursrut, orapoplaperyet,i,oafAAlflssysieiaatofPbPfasacyeacitiffbgiicycaiaaannngoddanttihnhee loe fel statedecreasedworkdwide apering United States. In 2008, restructuring actions, exit sale of real estate, decreased worldwide operating income byS269mic, activities and a loss on sa income by $269 million, withthe get le ofbusinesses, with the largest impact which impact nthe United were partially in the United Ses offset States snd Erope. by a gain on and Europe. A summaryofkeyinforsmnaddtisciusosionn elated to 3M's geographicareas follow: A summary of key information and discussion related to 3M's geographic areas follow: Netsales (mi!lions-- ) TS STTate eT sS T e5 rE a82n9Em5 diiL cdh6aea G5 AEmraeDs0Tv5 oeT nei(9) T w5 ew2s6e6 Net sales (millions) 5ofworldwide sles sv 310% as 0% = 1000% % ofworldwide sales Companofcnenttalses Components ofnet sales change: change: Volume --organic: 70% 03% 74% 1% -- 7% Volume -- organic price oi a 01 11 = 2) Price Onpaiclocal curency sles 71 7 75 m2 = Ts Organic local-currency sales Acisiions 11 03 I} 13 = 0 Acquisitions Localcurencysales 32 5 75 Tas = Ta Local-currency sales Divestires = = = = wn Divestitures Transaion es 53 an 27 -- 10 Translation Totalsleschange 83% 343% a Ta = Ta Total sales change 2010 Europe, Latin United States Asia Pacific Middle East and Africa America/ Canada Other Unallocated Worldwide $ 9,210 $ 8,259 $ 6,259 $ 2,950 $ (16) $ 26,662 34.5% 31.0% 23.5% 11.0% -- 100.0% 7.0% 30.3% 7.4% 12.1% -- 0.1 (1.6) 0.1 1.1 -- 7.1 28.7 7.5 13.2 -- 1.1 0.9 0.4 1.3 -- 8.2 29.6 7.9 14.5 -- -- -- (0.3) -- -- -- 5.3 (2.8) 2.7 -- 8.2% 34.9% 4.8% 17.2% -- 13.7% (0.2) 13.5 0.9 14.4 (0.1) 1.0 15.3% OpOPepenesrraintnintggicinnhccaoonmmgeee m(milillliioonnss)) Percent change $163 S240 sums $ 1,636 $ 2,400 $ 1,112 $ ans 0% (0.2)% 57.1% 10.9% 2m76957 %s$ 26.5% Gps (27) $ =-- som 5,918 79% 22.9% Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm a 26/114 11775588..00002266 es SA 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm FFoorrttoottaallyyeeaarr22001100,,aasssshhoowwnn iinntthheepprreecceeddiinnggttaabbllee,,ssaalleessrroossee 1155..33ppeerrcceenntt,,ddrriivveenn llaarrggeellyybbyyoorrggaanniicc vvoolluummeeininccrreeaasseess ooff 1133..77 om percent. Every major geographic region expanded sales, with total sales in Asia Pacific up 34.9 percent, Latin America/Canada up 17.2 I 1 AR A percent, the United States up 8.2 percent, and Europe, Middle East and Africa up 4.8 percent. Investments in innovation and new DD a re product development, sales and marketing capability and localized manufacturing created new growth opportunities in adjacent market Troma spaces. For 2010, international operations represented nearly two-thirds of 3M's sales. 528 " TabT leoofufCCoob nntteee nnttss EI WY un TE SR eREe Beet Svle Net sales (millions) OE A A i % of worldwide sales Te Components of net sales fi change: VVoolluummee ----oorrggaanniicc. = tern Price OOrrggaanniicc llooccaall--ccuurrrreennccyy ssaalleess os Tr Acquisitions a a = ---- --ap Local-currency sales we a Dm TC a Divestitures ons S/S Translation em Slr Ee Total sales change United States Asia Pacific 2009 Europe, Middle East and Africa Latin America/ Canada Other Unallocated $ 8,509 $ 6,120 $ 5,972 $ 2,516 $ 6 36.8% 26.5% 25.8% 10.9% -- Worldwide $ 23,123 100.0% ((1111.9.)9%% (B3a.4y)%s ((111..99)%% ((1100.00)%% ---- 2.5 (1.9) 1.9 8.6 -- (94.4)) (5.33)) ((1100..00)) (1.44)) ---- 2.4 0.5 3.5 1.4 -- 7.0 (4.8) (6.5) -- -- (0.3) -- (0.1) -- -- -- 0.1 (7.4) (7.6) -- (7.3)% (4.7)% (14.0)% (7.6)% -- (95.5))%% 1.8 a(7.n7) 2.1 (5.6) (0.1) (2.8) (8.5)% on Operating income (millions) $ = Em ay B a Percent change 1,640 $ 3.9% 1,528 $ (8.1)% 1,003 $ (22.5)% 631 $ (9.1)% 12 $ -- 4,814 (7.7)% ---------------------------------- For total year 2009, as shown in the preceding table, all major geographic areas showed sales declines; however, year-on-year sales Ee metwry growth improved each quarter throughout the year. In the fourth quarter of 2009, sales growth of 11.1 percent was broad-based. Every a. major geographic region expanded sales, with strong performances in Asia Pacific at 22 percent and Latin America and Canada each at DE ramsey 19 percent. With respect to organic volume, Asia Pacific led the way at nearly 19 percent for the fourth quarter. Korea, China and as Taiwan posted the most significant increases, driven by a combination of improved local demand along with the pickup in global `eelleeccttrroonniiccss..OOrgrgaanniiccvvoolluummeesswwerereeffllaattttoosslliigghhttllyyddoowwnniinnootthheerrggeeooggrraapphhiiccrreeggiioonnss,, wwhhiicchhiissaann iimmpprroovveemmeennttvveerrssuuss tthhee lleevveellssooff Br hEA Er decline seen in the first three quarters of 2009. For 2009, international operations represented approximately 63 percent of 3M's sales. Go AaSpg emg an Geographic Area Supplemental Information [-- so "gy Employees as of Capital Property, Plant and December 31~ Spending Equipment -- net (Millions~ except Employees) 2010 2009 2008 2010 2009 2008 2010 2009 j-- SE A ATES United States fa mm mn Asia Pacific Eomeite Europe, Middle Fl RE East and Africa a Latin America and a ne ww um me wm ww Canada wilh A A A ea re eT Tee Total Company 32,955 16,324 18,120 12,658 80,057 31,513 13,834 17,743 11,745 74,835 33,662 $ 13,960 19,185 12,376 79,183 $ 569 $ 290 151 81 1,091 $ 464 $ 215 162 62 903 $ 780 $ 338 253 100 1,471 $ 3,888 $ 1,605 1,239 547 7,279 $ 3,809 1,366 1,318 507 7,000 Spin Employment: SA Teme an ET SA ER AEA At December 31, 2010, employment increased by 5,222 positions since year-end 2009, largely driven by acquisitions (estimated 1,850 Ly dm es full-time equivalents) and additions in developing economies. At December 31, 2009, employment declined by 4,348 positions since A A year-end 2008, largely driven by restructuring actions taken in the fourth quarter of 2008 through the third quarter of 2009. FR -- Capital Spending/Net Property, Plant and Equipment: ras SS https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm son 1758.0027 in27/114 zane Migsohcivesadg GOTO IOUSEHIOOTASAI 2080_HOk Hom 1"/1bTT3ahh/2lee0n1bbcu8uellkskoiofnft33hMeMUccnaaiptpieitdallSsstppaetensnd.diiTnnhgehhitisCtspootsor:m/ri/pwiccawalnwllly.yyseshhca.sgsstobbvree/iAcevrnncihiintninvogetthshm/eeeodUUrgnnaicrilt/tdoeeasddetalSS/yt6taa6itt7ee4ssg0,,/r0re0ets0sus1tl1tmii0nan4ggn65uii9nnf1bha1ii0cgg0hth7eeu8r4r5eni/netantd1gpp1rr-s2ooo0ppu6eer0rrc_tyiy1,n1,pg0pklwl.aahintnmhtaganenoddgcerqaiuppihpmimcenemntctket. lSbsataelaleat,sne,c,aaehnnseddlibnpbeietcnhcageauutUsoseeniiaatmeppdprproSovtxaeitpmcesua.strTteolhymetoetwCwsoooeim-rt-hvpiiiarmcndd,yslooaiofsfwssletatrrlieevrssinseaagpreootoluortumistitsoyidrodeeencthlhoceeseUUolnyniisattneleiddgdtnSrStetsiaadttstueec,msse,,awthnhoiuirssfkawwciotonuuugrlcliddnagpiiinnatccnraredelaassrseoeequppurricroroidnedumgucetcwnittiiosotn,hn gCouaeupotisgttirdaaleptihethhxiecepUedmUrndinaitriettkeeueddrtes `Swteartees$,1h0e9lp1inbgitlooinmipnro20v1e0c,ucsotommpaerr esdertvoic5e0, l3ower transportation costs, and reduce working capital requirements. Capital expenditures were $1.091 billion in 2010, compared to $903 29 `TTiabblleeooffCCoonmteentss msmiiillgllioonnniifni22c00a0i0n99n2taa0nnl0dd9y.1$.1A.44s77u11bsbbiiialllnliiiooannlaiinnmo2200u00n8.t.oIIfntrrheeess2pp0oon0ns9sestoopgeglnlodobibanalgleweccaoosnncooammriyiccocvcooennrdfdiifotioomnnss,2,0tt0h8heCoCoromfmporpatanonyoyrlerienddguunccceedddeittdss fccoaaprpniitteaalwl pssppreeonnddduiicnngtg.s nd significantly in 2009. A substantial amount of the 2009 spending was carryover from 2008 or for tooling needed for new products and cronotwinhuoepdpoopretruantiiotness.TrhouenCdotmhpewaenryledx.pects 201 capital spetnbeadpprioxinmategly S13 to 1.4 bilo a5 3M contintofund continued operations. The Company expects 2011 capital spending to be approximately $1.3 to $1.4 billion as 3M continues to fund growth opportunities around the world. `CRITICAL ACCOUNTING ESTIMATES CRITICAL ACCOUNTING ESTIMATES reIInncffouorrrmmsaattmiioaonnnraeregggaeramdreidnningtgs0siiggmnnaiiflfiieccaaenntt aasccccootuunntaitiinnndggmappsoosaluliimccpiiteetssioeiisnnsitcnhlcaluutddaeefddeciinntNNhooetteere11p..oAArstsedsstaaatteeddmiinnoNNooouftesene11t,,stthh,eepraperipeaplraarsatti,ioonnreoovffeffnnmuaeanancnciiadallexssttpaaettenemsmeeesnn,ttss aaranesnqdsduurrimeerpenltastitemeoddnadsdniahisgacetlsomasrecunrbetloetoolfofecmcovsoanenktduteiinn0regesbetneeintmtraasetsaeessseottansnaandbnldadesusFliunaamdbbeilplietttiisoeh.ns.scMMtiharaacnntuaamaggsfefteemamcnetcentenhtste,bbraahesspeeossrfritateesdeesassmtuiiomfomluwaanthtettissecosoohsnnffahisrissometotscrt,ihcl)eiaalbbaeeisxlixiptsipefersoei,emrnreacivekeaeiannnnnudgdecojouaennnddgvvmaaeerrxiinpooteuusnsssaebs,out thecumying values ofses and assumptions that are believed to the carrying values of assets and lisihtlarensot readilyapparentfrom ber sources. Actuaresultsmay be reasonable under the circumstances, the results of which form the basis for liabilities that are not readily apparent from other sources. Actual results may iferfomthese making judgments differ from these about estimates. "`TTbhhleeiCgCaotomimopnpas,annayysbsbetelliiieevmveepssaiiittssrmmmoeossntattnccsrriiitintcccalolamacccecouaonxutenistni.ngSgeenesisttmiimmaattaeessrreelnlaattee otaolhlaegsggdaailsppcrroeuocsceeseeedddmiitnnghgses,e,dttehveeenCClooompmpmtpaeannny,y's'sselppeeecnntsisioionoann adanndddpiposocsslrtortseuitirereemmoefentntst ical acoountingestimate with the Audit Commiteeof3M's BoofDirrectdors. obligations, asset impairments and income taxes. Senior management has discussed critical accounting estimates with the Audit Committee of 3M's Board of Directors. the development, selection and disclosure of its LLeeggaall PPrroocceeeeddiinnggss:: "eTTshhteiemccaaattteeesggooofrriiei esorofeflcacltleaadiimmissnsffuoorrrawwnichecicehhcttchhveeaCCboolmmsppaaarnnyy rhhaaissaalpparrcoocbboaaubbnlleteiaannngddeseetssittmiimamtaaebbslleereilliaaatlbebidliitlyoy,ltthgheeaaampmroouocneuteodonfifniitgtsssl.liaalbiietlistyyraaeccfcecrrurtaoals,h, eaansddecthhteieon ePeersnntotiicmtteleaiedtdeiP"snProgrsfoo"ictcesisnerseNflfoaoottrreeDdD1iii4ssn)ccslfluaooordssauudnrrcieeoetofrofeLnLceaiailvbiaiilbnifltseioesrsmsaaiartnedidconrIIinntsisshcuuaorrlauanantcccsceeuoRRcuehenccteeienisitvgviaamebbaslltteeiesmss.RRaeteellsaattreeeddlatttooedLLeteoggaallelgPParrloopccreeoeecddeiienndggissn""g((sc.ocPnloteaanisneetdraeiifnneirL"nLteogeetgahdalel section Proceedings" in Note 14) for additional information about such estimates. Pension and Postreirement Obligations: Pension and Postretirement Obligations: `33UnMMihthaeadssSvvtaaartrieioosu.usTschcoeomCmpoapmnapyn.ay-snspypoaoncnscsooorrueenddtreseitoirrremmsecenntetpnplleaannsscbcoeovnveerfeiirintnggpseusnbussbitsoatnnatnaitainallllpyyoaasllrleUStS.rS.m. eeemnmptpllohoyeyeaeeteshsacaannrdedmamnadannyy1eesmmpiplnloosyyueeersseooiubsetsndiedfeeittpthhleeans in baUaeccnnccicootrehrdddaaSnnltcciaeegteawwsti.iittTohhnhAAeccaCccnoooudmunnitpnitaidnnneggytSeStarctamacninodnduiaannrrtgddstCCfohodoriadfiimtifscoicaduatentifiotmonnoefd((AnAbeSSetnCCpee))rf77iit11op5d,e,incCCsboiooemmnnpepafeeninndtsscapoatositotsit.nrAoe---nSt-iRrCReemte7it1eirr5neertmmheeeennarttlteBBheecneanemrfiepitl,aso,nydiiennlrimfmseeeioansrsauuercrisaonnggnucpipelzrlbeaaennitnaahenssefsistegttpslaannndsdin pubuonesnndieetfrdioftuneonnbdrledidgrofaeortciruaooovngvnesneriardfzfnuuedenncdidnhdeeadddnegsstteteaasrttmuuissinontoifhnfegaadftdehuefnefidiannemededdosbtbuaeentnteuesofffiintnppeheetennpsseyiireooiaonnrdaoiicrn ppbwoaehssnittcerrefhiettihtrceeeommscete.hnnaAttnSppglCleaasnn7s1asc5suuarnrenqasrusoiesrueettsgooehrmllaipaacblboicilyliuiettrymysuinttnoslsirtaesoctstothegatedtneimzceoeemnthptoerofefnhffeiinnnasantnicvciieaall income, position income, whichis acomponentof stockholders qui. and recognize changes in the funded status in which is a component of stockholders' equity. the year in which the changes occur through accumulated other comprehensive aPtPeneesnisioionnbbreenneeoeffriitstsmeaarssmsiononccaitiaaittotendd. wwTiiwtthhottchhreissteeicpaplllaaansnssuaamrreepgtgeienonenresaraltlllhyybdbaiasssceeodunpptrrimiamatareiralyinoldonytnhceaaeccxhhpppeacartteircdipttanuitm'csyoyieneaapprrlssaaoonfnfassseterrsv'vi,ciseu,,eccoommpppoeenrnstasaattiioonln,,maaennnddtaasggee opaoftofesrexetxptepierieenrnmsesemeeaenanntntdodrhslteieaiarblmlitltihintcyyaamtrmieeoaelnsa.usiTurwresemomeecenrntiatt.i.ncSSdaeleeeaNsxNsopuotmteeepr11t1i1offnoosr, addional the discou additional discuosf sscitaroianl assumptions nt rate and the expected return on pl discussion of actuarial assumptions usedan as used in determining persion and sets, are important elements in determining pension and postretirement health care liabilities and expenses. "TpThehneesCiCooomnmpapanadnnypyoddestetetrertrmimirnimneeesnstttbhheeednidesisfccoouulnnattsrr.aatteThuuessedddistocomomeunaetsaursurartepeplllaaennctlsiabbtihlileiittciieuersssraessnotofrfatthheeeaDtDewcehceeimmcbhbeetrrhe331a1smmsoeceaisautaeredsmaeubnltdrdeatsetecffmoooruretlthhdeebnUeUtS.S,. inepesffefftneerscciuttoiimvnveeeanllynytsdsttephtaeottlsdewtdroeauatitlrttedhhmepeerennontddbouoecfnfeetchhfeaietsyypheelfaaalnr.o.sw.TTshThseehuefCCfdooiicmmsipcepoanautnnnyynt rsstaetittsesmirisntesgf4lraeanctdetsa1t0tomhoerreuecffnllueetrccrttenttshhteeeraylitieeepladdrtoowojfefhcaaitpcpeohdorttrfhtfufeotolualiirsooesobooceffinahiteigegfdhhlqaiauUlbasilyiliitnty,ig,etsfrhixcieoesddmune-lditnchbcooeodmmoeeloddgeeybbt,t DhetihnceeseCtrCmouombmmpeepanratns3ny1ytdh,ed2atet0tew1er0rommuiwlindnheeipddcrhoaaidddsiuiccsaecodouceuancnsrthtearafaslteoewofosrffos5mu2.f23tf3%hic%eife5nfo7otrr7iUnU%St.a.iSmn.pdipenengn6ssai2inood%nnaaanamntddeosu55,n..r0t0e9t9so%%pefscefototitrlvUeeUlSp.ySr,,o. jpupeooscstsdtetrrdaetstfioiurrtfeeummrDeeeennbctteebntmooebbfbeieetrsa.ap3ppU1rps,oriop2nprg0ir0itaah.ttFieesoa1mrsetoothfhfeodology, ineDinteteecfnrentmaitbfiooenrnssea3elp1p,etce2nne0ss1iait0oo,nntwhianehndidecvnhppdoiosseoftartehdstleiercyeirmeeyaaersn.etpTpftlhrlaoeanmrnwssetttnihhhegednh5di.eis7sndc7co%aouvutnenatrntaderga5tse.d6si2asl%slcsooruanrrteeteffsll,eetccretetfsttphoheerecicuttiurvereermlenayntt,touraasneetaedlaataptsewwnhoshificiDcohhencttphheaemenaabsssessaroos3ccoi1iaaf,ttD2eee0dd0csl9eia.imbFblioleirrtiteh3s1ec,co2ouu0ll1dd0bbee weaffsec5t.iv0e4l%y,setdtleecdreaatstehfereonmdtohfeth3e0ye%ar.tTehueswedei3g5htoefdDaevceeramgbeedri3s1c,o2u0nt0r9ate for international pension plans as of December 31, 2010 was 5.04%, a decrease from the 5.30% rate used as of December 31, 2009. Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm wna 28/114 11775588..00002288 zane 1/13/2018 Migsohcivesadg Gat OTIOOIOUSEHIAIO2O08T0_AHOSk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm AaAsssiseiggtp,niifwfiihcciancnthticesllebemamseenentdt iionnnddheietsettromeriincnaiilnnegistthhnteesCCofomomprapsnalnyy'a'ssppleennssoiioonnceexxppaaeemnnossteengiinnissaceeoctcorodnlnaansdscseees.wwiFittohhrtAAhSSeCCLS.771155piiestrthhseoeenxxpppleeacct,teetddereeextupurencrotonendpplllaonnng. `etawersarmssmedtresr,ttaewteerhmoofiicfenhreeuidtsu.mbrnRaesooentndsuamonnonnaahnraimnsutueoaarllisiiczzaeaelddsrbsebasuausmslipstssiffofooonrrrs22s00oim1r11iliai5snrt8ae.l8n5lot0ic%ao.tn,itaothhlne5esspseaaanm0mseioeon4n%agssa22s0d,0s11eo0tt0,hc.elRRasepsfeeessr.fttoForNoetNrorortehtteme1e1Un1.ftSfoob.rerpnieiennffnsioitormfnplapoatlianornan,rooetmnhncheaaholeocxwwtupletaihhcteteee2odd200o1ln1on11ngrr-aete plan.by plan basis singplan asst was determined. Return on assets assumptions plan-by-plan basis using plan asset for international pension and other post-retirement benefit plans are calculated on a 230 `TTiabblleeooffCCoomnteensts: 1aal6llo.c5la8toi%oncosaraann2td0d1ei1ex,xpopececonctmtepesddarllaoobnnlgge--ttee0rrmtmhearwatteeioogffhrrtetetuudrsrnveaasrsssauugmmepeptxtiipooenncsst..eTTdrhheetwuwemegihgoihfet6edd90aavv%eerraaoggree2e0xe1px0ep.cetceteddrrtetuurmnffoortthhee innttrenrnataitioonnaall ppeennssiioonn ppllaann is 6.58% for 2011, comparable to the weighted average expected return of 6.90% for 2010. stFFioroetrhmtehentyyeseaa,rrceeunnrddteaeddiDlDmeeecncetemmnbbederrs33p11e,c,i22a00l110t0,e,rtmthhieenaCCtoiomomnppabanenyynrereefcc)oooggfnni$izz3ee2dd2ttomttalillcceoonn,ssooplliiddraatoteemdd pp$r2re2--3taaxmxippleelnnossniiooinnn s2a0nn0dd9.ppooPsstetrrneistiroreenmmaenenndttpeeoxxsppeeenntssreem((eaafnltetrr 20xes1exp1tpet,lenenasmseneen((tbbesee,rffcoaoursreretassoieelftmttllee$mmn2et1es3nnmattnsis,dl,clcsuporrenataclciilmaomlemtenpentartmsrseiaandnnatddtoissopp2ne0ecb1ci0eiaa.nlletFtfeoeirtrrsmmt)ihinoneapfatet$iin3oos2nn2ibboeemnnepielfllfaisionts)ns),,iiusshpaoalnnfdrtoiiicnmcigpap$al2tae2adt3htd0omeriiilnfnlccicorroeneraaisssneec2ttoo0on0saa9tpp.appnPrrtooe,xxniismmi0oaa2tntee5allpnyySde$5p5r3o3cs55tmermientliilltrleoipaomnongeniinenntt na2inpc0cpr1rre1eos,axssaieenml/adidnteeeccclrrreeyeaaa$sssee27oiinnfmtti$hhl2eel1eo3exnxpmpefeciolcrtltieeUod.dnS.llcooonpnmeggn--ptstaeierroremnmdpartaolttae2no0sof1fa0rnr.edtFuesorprnpttorohnonexipppmlealanntseiaaolssynsseepStt1lssa1wwnomsoui,ullhlldodilodddnieencocgrreeaanslsleseor/nitmnhcacertrraeifasoasnceetso22pr00se11nc11sopipneoesnntnsapisnliotona,nsa.ee0xx.App2le5esnnopss,eeehrbbocykeydnitnaggue lpoint tpaoepthhnpeesrrriofoxfcnaitmceotoxarprtseseclnycoson$en2ssb7tayanmnat,pi,lpaliro00o.n.x22i5f5mopaerptreUecrl.ceSyen.nt$pta3ae0ggneesmpiipooloinlninpottlnaifinnnocscrrraeeUnaasSdsee.aippinnepnrthshoeiexoiddnmiissapcctloeoaulunynnstat$a1rna1edtemaupuisplsleerioddo1nxt0iofmmomaertaeienasltsueyurrrn$eea1ppt0illoaamnnniallallibipaiobelniniltositiirioeesnsiwnpwotlueoarlnundsald.tdiAdeoenlcsaceolre,apahessnoeeslid22oi00nn11g11palllas. In aapaipdedpndiristooiioxonnin,m,eaax0tpe.0el2.2ny55s$pep3ebe1ryrccmeaeinpnltlptaairgogoneexpifpmoooirainntUtetSdlyde.ec$cpr3reee0naassmsieeoilnnilnitpotlnhhaenfosddriinssUccd.ooSuua.nnptppterrnuaotstxeeiioumunasstpeeeldaltntyoosmSmae2na0emdsaisualurplrepieorpponllxfainnomrlaiataiebnbltiyilei$tnei1tesi0swowmnoaouillullilpdodenininnsfccoirroreeniaansspteele2ar20ns0,a11t11iopnpeaenlnspsiioeonnnsieeoxxnppepennlassneebsb.yyIn approximately $31 million for U.S. pension plans and approximately $20 million for international pension plans. AsstImpairments: Asset Impairments: AiAsisonof.fDDeMeccaenemambgebree3m1re, 23m10a,21k010e0,,nsneeettpsprrootppeerrittayyn,mpdpllaaaannststutaanmnpedetqieuoqsniuspipmimenenpnttrttoottaealleedpd $7hea7.c.33ornbbsiilloillliioionndnaaatgnnedd nnfeietntaiinddceienanltiiffsiiatbbaltleeemiinentntaatnnggoiirbbllweeaiascseshtetsastctootttaaalleerddes1$ul1.t.8s8 will ambecmiqellueinoirgrngee.dMoobvvuaesenrirlanlogoeensnmsggepepsne.etrTimrohdeaisksoeeoofsfetedstiistmmtisiemme.a.taTTetheshisiassannindndccaladsusedssuesusmmttpphhteteioirrneoscanoerisnvecepclrraoebspoieallirtyiyvnmogoofneftihlootenrnocggro-elanldivsvboeebyldisdmasaistcsetedlastsfeienimmanpnpltcloioaayyalyeensddtdagpiitneenrmttihheoeeednbibtuscumsasfiloinlnreyeeswasssdh,,jiucnicnshctlaleuctiddt1unisnaggl arasesssseuetltstssoowffill ecacxiicprrqcecuucuimmtrseestddtaaubnnusccseeiossnwfewatsashrreearsaa.nnsTits.htFFeoosorerriepninssetstritamfanoncarcetmee,,asneeaxcxnpepdeoecacftstetesdhudmaalspsstettiotndlvisvesaesrsemsmacyaloygbsrbeoelueypss.hmhooIorrmntteieptnnoaeeriddecdoonrbratyansnmireimamcpnoapariagdrieermmdmeeennnnt2ttr0raee0ncc9doopr1rddenerediddo2bdba0iacs0sae8elddlryoeonalndiajeucdcsthhtoaeandnrgegaesestriinutcththeuering actianodonesrexit ctiviiarse discusseind Not4e. expected use of the asset or performance of the related asset actions and other exit activities are discussed in Note 4. group. Impairments recorded in 2009 and 2008 related to restructuring tITnhneJauUnnKee 22g0o00v09e9,r,3n3mMMen'stSSdeeecccuuirrdiiettydytSSoyysasttweeammrssdDtDihvivipissiiroonno((wwiditthhuiionnfcitthteestpSSaaisffeetpotyy,,nSSceuc0rukraitctyyomaapnneddtPirtroooetrecuciptiooonnn SStheeerrvveiixccpeeissrabbtuuissoiinnoneefssssMse'eggsmmeneetxni)ts)twwianagssUnnKoottiipffaiiseesddptothhraattt actchcoteniotUvriaKtncytfgsotoiinrnverOeOcrconctavmtoeoberbcaneebtrrit2d2l0e0i1cst1i0y0d..eadAAsntsodaaarraweessaururldltt toeohffetthaphirissoesdevuveccesnitnirtto,rnieiennmoaJJfsuiuitnnnsiees2pn20ag00seus09sp9,eo,df3ru3tlMsMtvtoetsesas.ttceoIdmnhthapeeedltdliootionnrngglu,lipivvMoeenddatheasesssteeesxtdspagaisrosassootodicocwiniiaalttoleefddfw3woiMtiit'hhsmtpethhxaeeilsmUUtienKKngptpaaUastKssshpppoeoarrsttsport trraehecpeptioovUrrittKtiiynpngagfosuursnspriteotcr((otSSvaeeeccctruuairrvbiiittitylyiytSSyiyynassdnttiedecmamatsslesDodDiitrvveiiassshiosoenns))assleleedivvtetelth.l.getriTTrohhureeheprmirenesaegsuiu'nlsltitcnooagfnftuythhiseenefguJJulumnnlieeovue22s0n0.0tI09notefaedtsadtpoiopftirfrooernexc,coio3vmeMavrteaertbaleibyslitleiSidt5tyy4gooomffioldlooiwonoignllll(iifvoveeerfddiomaarspssameistprsmsaaiessmnssooteccaniittaattt)heeedd wwiitthh hetehxexecsceUeeeKcdeoepdndadtetshhqsdeuparorreertmtmeaaraicointnfiivi2nni0tggy0ee9xixnptpdeoeiccwctarteetidedtdecctaathsshahehtsfftlhloaoewwsassss..esAAsedctccogcorowrordnduiipnnig0gnltlgyy',hs, 3i3cMaMirrrryeeicvcnoaogrrldademee.ddoIaunnnantoodonndf--icaaanpssp,hhroiiamxcipmcmalairetmeuplyeend$tad5cce4hpharaimerrgciglielraioootfnifomap(npbppreaeformooxorxireitmnmiaimztaaettptelailyoyirnm$S11we33natsmm)iiklllleiioonnn iinn the second quarter of 2009 to write these assets down to their fair value. In addition, accelerated depreciation/amortization was taken oofvtehretsheespesrsio.d June 2009thtrhedoat ufexpgirathionofthe contractbas an a assessmoefnhte remaining expected seul ie over the period June 2009 through the date of expiration of the contract based on a reassessment of the remaining expected useful life of these assets. 3F3oMMurtgghooooqddwwilillul taooftlaci ladecdhaaypptepprrr,ooxxie ismmianatgteellSyyeS$p6t6.e88mbbbieillrliio3o0nnnaaesstoobffoDDoeekcceevmamlbubeeesr.r 3311p,,a2200n1100e.. V3PM's'sstiaannngnaufalolrggGooooododwdwiililllliimmsppadaaiinrmmeeaentntat treessteitnpog apiserpurentfirfotoirrvmmneeegd,d iiwniththhee aafaltollluDggrteoohoocdqdweuwiamlirllbtleaa3erss1ors,sifig2egn0ane1ced0hd)ty,.oebaarurert,epucposaorinrnttigibnneSggceuuonpnimteitbtm..iRRnbeeeepdrpowo3rtr0htiiennngnegtwubernpoiioottstkaiavnrraegluooiennses. elIemvwvepellaiibbreemttlloehohwnewttstithheaeesmntbeibunusgssiienfnogeermsssegssnosteoeghdgamwmveieenlnlsttiislemedvivoecenlle(o(3aMMtna hhoreaspsrosirixtxcibnhbugausrisuinanneciesttslesesrvseieegsglm,.mewAneinttthtss 3M, reporting wits generally corespond fo at December 31, 2010), but can be combined 3M, reporting units generally correspond to a division. 3M didnt when reporting units division. 3M did not combine anyof within the same combine any of tsreporting units for segment have similar its reporting units for impairment esting. economic characteristics. impairment testing. At fAAinnrviimmapplaauiiorrmmfetennhtt lorosespsoggreteninenergraualnllilyytw.wToouhulelddcbsbieemrraeetcceoogdgfnniiizzeevddwawhlheueonntfthhececapamrryrtiyinignnggmanmotiuoundntetootfftethherermreepipoornurtsteiiinnndggguuncinatimt''issnnngeesttafasossrseettthsseereexxpccoeereetddissngttuhheeisetsttimmtaetedd pmmfracuiursltvlcipaalllumieeiedbnobdgyfysthaaaepptrrreoiipcceoac/rpietpeianrargnomiaiunncngghisstf.orraTarttshiioteoaffbeoolsrerticacmonoammdtpegpadrarorfaaawbibirlinevgiaibnnlduuduseusistontrrfycyasggsrrersooputuophprsatsi,t,nhoogarbvubeynyit4usilissonindgng.etaheirddsmtiisosinrccyoeoaduunnnutdtseeiddtnrgccaaacesskahhrrfnfelliconoowgwrsadanfnooafarllgytyehssneiiessrr.ea33ptMiMonrgtttiyynpppgioiccsuaalnilliltytyueusseess thhee alopoprpsieecrureaas/tteeiiansnrggndiiiinnnsgcccsooomrmuaneettionaenddadcpcacpasarshoshhalcflhwloofwawosssr..as33tnaMMabdleudusisaeetnssodtnthhgaeerldodiwosiosiclncoogfuuobnnrtutbeseuiddnsieccnsaaessssehhssffetllshooawtwtahhaaptappmvprearooyaaacbclohhenffggoorrrhosiswsattairorntrtg-yuuapapt,n,adolostssrsawpcpoekossiriettaciootonenradtanhonaddfngdpdeelenccalelniirnnanieitnindngggdbbpeuuosssii0ninteeievscsseosens,,obbmuuittc oratorconditions, also uses discounted or other conditions. cash flow as an additional tool for businesses that may be growing at a slower rate than planned due to economic Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm Ee 29/114 7175588..00002299 zane 1/13/2018 Migsohcivesadg Gat OTIOOIOUSEHIAIO2O08T0_AHOSk Hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm AmAsosvddeissicbusestsewcdeieuinnnNisNtosotsbteues1i177nettosostthhseeeCgoCmneosnnotslsoi.ldFidaoatrtetedhdoFFsiinenaacnnhcciaianalglSetSsatatiteaemmteernnettsssu,,leeeffdfeeticitivrveeeiinnpthheoe ffrnisristttqcqhuiuaiannrgrteeegrso,offth22e0011C00o,,m33pMMamnmyaadadpeepleciererdtaatinhnepprlrooaddtuiucvctte fir Vpmvoaatolleuvnieetsimmableeetgtthwoohoeddoewtnodoiliddtlseebtiteemurrpsmmainiiinenrseemsetthnsheetegifimmomrpeprnaaectpcstot.rtotFoionrrrgeetppuhoonorristtteiisnncgghiuumannpniagstcse..isDeDrtdhiuabnrtiygnregsttuhhleeteifdirtisnt quarirof 2010h,e Company completed sassofany reporting unit changes, the Company applied the relative fair quarter of 2010, the Company completed its assessment of any potential goodwill impairment for reporting units impacted by 331 `TTiabblleeooffCCoomnteensts. a{tnhhniissuannleeiwwmpsstariurctmtuerneatranenddtdadceentteedrritmmiinneerddhetthhcaaoettnnntoeoxiitmmappfaaitihrremmesenentgt meeexxinissttteesdd.t.rTuTchhteuedrediitshcsautsecsxioiusnttsthehadastttffihooallolltoownwmsserr.eellaitsets the to the separate separate fourth fourth quarer quarter 2010 2010 annual impairment test and is in the context of the segment structure that existed at that time. AhAsesoogfofSoSedwepiptltlee.mmbbTeehrre3s30e0,,i220g01h10t0r,,e3p3oMMrthihanadgd33u8n8pitprsriiwmmeaarrreyyroremeppyooerrittisinneggdnoufniisttsh,,wfwiotilthhloiewigighnhgtrreeppoiorsrttoiinnnggsu:un3niiMtss aPacucccrooiuucnnttitiinnoggnffIoonrrc,aapOppcprcroouxxpiiammtaiatoteenllayyl77H11pepeaerrtcceesnnnttodoff the goodwill. These eight reporting units were comprised of the following divisions: 3M Purification Inc., Occupational Health and HEenavlitrhonImnefnotramlatSiaonftS,ysOtpetmsi.ca System, 3M ESPE, Communication Markets, Industrial Adhesives and Tapes,SecuritySystems, and Environmental Safety, Optical Systems, 3M ESPE, Communication Markets, Industrial Adhesives and Tapes, Security Systems, and Health Information Systems. "`TThhSeefyfiasirravtvanaledluume3esssMffooPruttrhhieefimcafatojioorrntitnyyoco,ffbrreueppsooerrtdtiionnnggufunoniutirtstswhwqeearrereiiinnree2xxc1cee0sssssootfficcnaagrr.yriywningegrvviaanlleuexecbbeyymsmooorfreceattmhhyaainnn33g00vpapelerurcceeenbntty..aTTphhpeerfoiaxririvvmaalauteesll2f3fyoorurOpOepretpcitecisncatall a`aSnwnydeds2gt2eh6m6tpepsedear-rncacdevenen3tr,M,aergesPespdupeiresisctfctiiicovvaueetnlilyoi,,ncwwIciniattcshh.h,nnlboooaswiimemdappanoaiinarrmlmfoeyeunnstrfttihoiisnnrqdduiOiccpaaatrtttieeecdrda..l2A0ASs1sy0pspataerertmsttsioonfagfnfi,tsdswa3aennrMnenuuPianullreiiixmfmicppceaaastisiirrmoomnfeenIcnntatcrttr.eeyssuittnsiinginnggvgiainpnlurttoehjhebecyffotoaeuudprrtptchhraoqsqxhuuifiamrlrtaoeetwr,e,slty3MaM2t3uupwsseeeerdrcaedeant `mwwweaeeiniigggahhhgttteeeedmddbe-baanavstsee'erdatogoiennmdddaiisitffcfeoeeruroeennfnttettsdhsaaelcleaesessghegirfrbloooowwwotdhaaonanafndldyctsateiecsrrhmmfiosincrnaeaOlnlvapvartaliicluouaoeleacSscasyusussrutmiempnmtgpis.toiaonInnnsds,h,a3eaMmfmooouPnrnugtgrahifobiqtcheuaeratrifotfneaccoItrnofcr.2.s,0.Tu1Ths0hie,newg3ewpiMegriohmgjthaeictdintneeggdswwecavaaesssrhbabalfalsgsoeeweddsorotnnhat were aSmaccyqaqsunuitasiesigitmetii)moonneass.nn.dt'TTsAhheetesssteieemnaaacctqHqeuousilisodsiiifttnitiohgonsenssSli.((kwAwe.iiltti(hhhtothhoeeTdiirroarfenreedppaoTocrarhtrianstccgcie)unn,naniwgriktitioiihnnoddcgiiccocuaotrtderewiddni))lgli.nnIocnfelautphddeepdfroAAourrrxiitzzhiaamqnntutaaIntnrSctcee5.rl1I(oIyn2nffmf2eiec0lct1ltiii0ooo,nnn3,PPMSrr2eemv9ve5eanndttlieioosonne)),vn,eCCraoaognlgeldeannrt$gt1eIt2nrn2c..m((iSSleelcciuournri,ittyy SrrSeeyysssspptteeececmtmtiissvv)eeDllaiyyn:v.diDsDAiuuoteentettinoontitt2hhH0ee1o1ssliidggfinnnoirigffsiaicncSaayn.nActcer.ei(oogTfgfrettarhhcieekngCCaovnogdgeeeTnntrtanoIIcncrec.o)t.,tawahscceiqqtruhuiiisgsnioidttoiiiodcontnwowwirlislittoohhffrraeiepsmspppeaercoictrxtmitoemosnaitrtt.seelryepp$or5r1tti2nigmuninlinltigiot,,n33,MM$2w9wi5illlml bbieelmlimoonnoinatinotodrri$inn1gg2t2thhme iSSlleeioccunur,rityy Systems Division in 2011 for any triggering events or other indicators of impairment. i1n0Idn.u22s00t11r00y,,pffroocrett-hhocosasemiernepgposorrrtiianngoguusnpnipittrssowwshchohos,sebeffuiairtrvvsaaluluuseeewwdaassidininsecexoxcucenestsesodocffaccsaahrmrfyylniongwgvsvapalpluureoebsbcyyhmmafororeetththaainn3n30r0epppeoerrcrtceienntng,t,33nMMitpsrp,irBimmaraariillyyosnuushseeeeddfaadinne Vrvineaadmlluuaeesisstndriydenetpgtererrirecmmpeio-irnenteaeirddnngiunsusiginnnsgsgr,daditiistsoccooaSupunpnetrteoepddacctcahas,esbhh3umf0ftll,boao2wlwse0sos1fr0fuoo,srrec3dcerartadaiiimsnpcrrloeeiuppenoodtrrettcdiionnncggtaruusonhniliptftslsaoawnrnsddtatephhpewriiomannaddscuuhsssttrfproyyrrpopcrsreiiircctmea-t-iceneaalrrmenyipinno2gg3rtssipneragarttcuieoonnatiat.pspTp.prBhrooaaacscceohhdnffooronrrlttthhhpeee rfaier s siriseudmdmeoeafffimnitienhndgeeaardissenptdthoieevrtisisdnuuugammlouvonaffiltttushh,eeastiitnnySddpeiiipvvctiiaeddlmuulayabllerbrreeep3ipon0org,rttl2iia0nnrg1gg0enu,int3tihtMssan'esstttiiimhmmepaavlttiaeeeldddummcaooarnrrktkerteohttelvvpataolrletuuameelssiCucocmoommmpwpapaanarsyreea.ddpApt1toroSM3xeMimp't'saettemtolbtyeaarl23CC3o0pom,em2rpcp0aea1nnn0yty,.mmITahrMaekrskecmetoatnrvvtkaarolleulete,p,rvwwealimiutteihh.utmthhee `bwswiuaalmlssiaaoonppfpsptihrronegxoiinxmdia2ivtm3eipadlyeutSra$6lcl62eyv2bnaitblluiclleloiisnootntny,o,pblbiucutpatrlilfefymcebiaaeuccimhhn.rgre3elpaMorpgrtieoisrnargthutainnnietittghwnwaeaagtsvseavlvduaaelmluuafeteoeddrriiitnhnaddelisitvvoeiintddafuuleaarlClpllroyyi,m,sNe3p,Masnt'hyss.mm;AamartrakkSeneetytpvovtaeaflmluuIbeeweMwros3uob0lu,udld2bs0be1iea0nap,ppe3prMsrocoxs'oxsiueimmmlasdatartenkeloletyytcavS$sa77il66uleybe srbsoeoilpklldoiorootnnninuagssistuntnagaitnnsadd.a2-a3lIloopanndeeedricbbteaainssoitin.sc,.oBBMnata'srsoseelddmpoaornesnmkitetisstuamavnna.nln3uuuMeaaaltittseebssatttninhnitntShtheeeegfportfaoueturmertbdthehmqrqua3aut0era,rrtit2eae0rlrso1o0fefan22tn0e0d1r1p00Dr,iesnecoo,egtmgohobouoedsdrw; wim3li1all,ln2iiymm0op1paf0ai3oirrMfmmep'esnnptbtwruwaosiaxsnseiiisnmnsddeaiisctccaaeStoteelu6ddlyf2dfoobnrriolaatlnieoyannosofailfnyyttdhhbeee Sre6p1oritlinlognu,nrietss.peInctaidvdeiltyiowna, s3Msi'gsnimfiacraknettlyvanlueexactebsotohfiStespetqeumitbyerof3a0p, 2p0r1o0xainmdaDteeSc1le6mybierl3,1, 2010 of approximately $62 billion and $61 billion, respectively, was significantly in excess of its equity of approximately $16 billion. cFFoaamcctptooerrsstwwihvhiiccchohnccdooiuutilddonrrseessauunllttdiicnnuufsutrtoumreeeriimmppparaiirmemeefnnttecchhraaarnreggdeTensus,,ccaatmumeaootnnsoggno,soththeienrrsso,,riininccglluucddueemccehhnaacnnyggeexssciihnnawwnogorerlldwrwaitieddse.eceTcchooennsaoemmriiiscckccfoonnddaititiicoonansrst,e,dccihohsaacnnurggseessssediinn ciPnourmIlitfeipimemctaitt11iiAAvo,en, ""cnRRoci.nissdkkaitnFFidoaacnc$tst7oora5rsns0""d,m,cioolufflsttithhooiinmsseeddlrooacpctuurememdefenetrtnoeO.tnp. cAtAeisssc,oaoaflfnDDSdyeefscltuececmmtuseba.etrmi3Io3n1n1ba,s,d2d2ieni00t11firo0o0nr,,e,33igsMMnahhcauardedrasreuaplnptpcporyrfooetxxxhiicmehmaCaatnoetggleyeelSn$r1tya1tnebbscii..lllalTiiochonqneousofeifgsrgoiiosotkodidwfioawicnlitlloltrherseellaafartoteeuerdddtifhtsoocqu33usMMaserdt kPoufe2r2n0i0f1,i1c003a,,tSMiSoewecnocuIurunrilcitt.dyyaeSnSxdypsey$tce7tms5t0samDDtiiivovlliiissoiinoonnnrepggolaoroottyoeidddowwnitloiolllfOcitnphcteircearoalsSgedyelst0itoevameapdppaspr.sorIsonxexsitaimsdmoadtarieettgeiloolyynod,$$dwa55is00la00lrmmewisiollululilolotndno..fbItehfeffiumCutpuaorrigerneenondont.n-I3n-cccMaa.ssawhhciqiilmumpicpsaaioitiirronmmnetenininttntocchhheamarfrogogneuesisrttahaorreqreusarter rtaekpeonr,i3nM g wwitosulidn e2x0p1ectfotrhaatnoynilyggacproirntgiovneonfttsheorloantge-rlivineddicaastsoertss oofrimgpoaoidrwmiellnwt.ould be impaired. 3M will continue to monitor its reporting units in 2011 for any triggering events or other indicators of impairment. Income Taxes: Income Taxes: "TmThheeueelxxtetntotfoioeffu3t3nr'Mistusd'sicdooipporenessra.ttiiToonnhss iifnnivnvaoolllvvteeassxdedesespaialniigndgwrwietitdhheuupnennccdeeerrtnattiinuipticessamannaddnjjyuudfdaggcmtmoeernnstt,siiinnnclthhueedisanppgpnpleliigccoatttiiiooanntoiooffnccsoowmmiptphlleetxxaxttianxxg rraeeugguublloaarttiiiooennsssiiinnnaa vpmvaoarturieilonotiututsiusadjljeuusrroissfdijuciictrtiiisoodnlniacsstniaadonntrnddcso.rreenTsssdhoosleluufttuiiinoxoannolsotfaifxddlieissstpppsuuattfieedssoaaarrriaeistsidiinnecggppeaffnrtoodomemdntffteaeuxddpeeaorruanadlli,m,tstatsaanuitye,e,fsaaancnitdionfritsneh,temeiUnrannctialutitideooidnnnaglSlanttaetaxgxsoaatauuianddtdiiitost..nhsTTehhweetitCCahootumamxprpianacngnyyiaurrcetehcciooorbggoinnatiiineszzseeesssidnon ts e7pes4sto0titi,emmnaIattniteaeclooolfmiwfaewbTihhaliecttishee,esrrat,enaagdnnahddrredtchehieonergedrewxsxtteet,eannxrtt ltonioabwwtihlhiiticicnehhs,,oafadoddmridtaietiniotoinncasiaxpletastta,uexdoesstrawewxicilaolllurbbddeeitdhdieseusseue..eTTashhbieneltCCheooemsmUpp(naarinnetefyyedrffoSoolltlNalotoewowssstaggneuuidfiddooaartnhnacecderedptipratrxooovjnvuiairddlieesidddnibfbcotyyiromAAnaStSsiCCbona)s.edTohne its Cc7C4oeo0mrm,ptIpanaancnioyynmasaedd,jjTuuhsastxetssesutt,hhmreeessgteearrereedssrieenerrsgvvoeeulssuntciinineorllntiiaggiahhntttyoyofr fincchhianancngogs niminneggptfiaaaxt tycetmssse,aantnnotddraeccciitrroccruiudsmmmtsahsttteaeasnrnecicealesilsa;l;byhihloofitwwireeevsvee(errnr,e,fddefurureeotom1toNttohhheeteeCcc8ooomfmopmrpalanpedyxld'iitsetyioocxonffuiasslrootimemnyefeooesrofmtfitatmhhtaieetosseneeo).f The th tex. uncertainties, the ultimate resolution may result in a payment that is materially different from the Company's current estimate of the tax Pigs eihcesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ana 30/114 11775588..00003300 zane Migsohcivesadg Got OTICOIOSEHIAOI O20T80A_HSOk Hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm bili. Fhe Company's timateofa lsprovesto be es thn heulmsssncan naddtito,nal charge expense liabilities. If the Company's estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense `Would sul IF payment of thes aronnts imately proves tobe ls than therecordedamounts, he reversal of he Habilis would would result. Ifpayment of these amounts ultimately proves to be less than the recorded amounts, the reversal of the liabilities would resulta benefit being recognized in heperiod when heCompanydeterminesthe bile reo longer necessary. result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. 32 `TTiabblleeooffCCooentnensts: NEW ACCOUNTING PRONOUNCEMENTS. NEW ACCOUNTING PRONOUNCEMENTS IInnffoorrmmaattiioonnrereggaarrddiinnggnneww cacocuonutnitinnggpprroonnoouunncceemmeennttss iis iinncclluuddeedd iinn NNaottee 111to0tthheeCCoonsnosoliliddaatteedd FFiinnaanncsiaall Semen. Statements. FINANCIAL CONDITION AND LIQUIDITY. FINANCIAL CONDITION AND LIQUIDITY aAAnssdi$in5nd4dic5ia2ctebtdeiidnnitthhelofffooldllloeoobww.iinnDggebtaatbblnlee,,caauttDDdeececeedmmb$b4e.e1r8r33b311,,2200i11o00f,, l33oMnMghheoaarddm5$5.d.00e11b88, bb1.1i8l5iliolnlbooiflifclcaioasoshnnh,,cecalaassthheedeqqouutiivhvaealcelnuetrsne,tnaastnn,ddpmmaaarrkkeoertafabbotleensgseoe.cctuureniritmtiieess rbadeneltbdita$baa5lnne.d4as5csh2choeobtsri.tl-ltttioeoernmmcaopbbfiotdoarelrbromtw.rarDionkeegwbtsistoo.ifnnfAScg$dEl8dusA4idtemmidioilnl$llai4iolo.1lnn.8y. 3tTThhbheeiCllossitomrnepnaeognftyhlo'noonsffgm3-gtaWMet'rum'ssrtcicdatapyepihbpitttra,aoll$fi1sslt.re1ruu8icc5ttuusbrrtieeallginagonedndrerccedoolnatnostseiiedssnttseteounnrcctehyyreooefcffufiinrtssraenccncaaitssnphhgolfrnltooeioewwdnssspoprifronolvovaininddgyee-tg33eirMMvmen year ae reliable year are resonable in proportionto thetotalportfolio. access to capital markets. Additionally, the Company's reasonable in proportion to the total portfolio. maturity profile is staggered to ensure refinancing needs in any given "oTThnhee3CCMoomcmpopamanmnyoynggeesntnoeecrrakt,iessnssdiigfgonnriiffaiicccqaaunnittsoiontngigooonisinn.ggAccsaassdhhilfsloocwwu,s, swwheihindiccNhhhoahtsaesb2beeeiennntuhseseedfdo,,uriintnhppqaartru, t,ooafofuutfnn2dde0ss1hh0raa,rreehrreeeCppouurrmccphhaaassneeyaacptuicvricthiteass,pepiadayAydrvidivzivaiiinddteenn,ncdd.ss AsAoenttctu3etrnMiittiiHceHoosolmaldcdmiqinnuoiggnrssesSdStoA).Ac.fk.o,raaanntnhdddesCCfeooogtrgereanenctsqt uIIanicsc.i.tciAAonsssqa. Areeussloud,liitas,cccudsaasssshheaidoopupuitrnttffolNlxooiwoiwmtssaet((o2iein,lncicynnlluutddhiienSn14ggfboirrulelrpitehaony.qmpu3eaMrnattewoorafyfosaafqca2muqb0liu1eier0r1ee,ddtnchddeoeetbmCb,tpo,bmlbuuetptantnneheytetspooefufarccccaahqssuahhisesaaidnniddAonmrmsiazarwarkiknetetthtIaaonbbucltl.ee, curing securities incurring ddidonal acquired) additional de,whilematainng songcash, cash equivaleanntds marketable for these three acquisitions totaled approximately $1.4 billion. 3M was debt, while maintaining a strong cash, cash equivalents and marketable series postion. able to complete these securities position. acquisitions without froma At December 31 (Millions) mo 0 om 2010 2009 2008 TTLoeosutsal:lCDDaeesbbhtt,cashequivalents ndmarketable secures NetDebt Less: Cash, cash equivalents and marketable securities Net Debt s sms sos em $ 5,452 $ 5,710 $ 6,718 sos a6 25% 5,1118 4,609 2,574 5 8 Tol a $ 434 $ 1,101 $ 4,144 "iTTmhhpeeoCrCotoammnptpamanenyyadsdeuferifinoneefslnineqetutdiddeiebtbytt aansdttooitlsalldadeebbbtileetsossscmcaeaseshht,,occnaagssohhieenqqguuioivbvalaillgeeanntttisonaasnn.ddmTmhairaskrkemteetaaabbsllueerssieesccnuuorritteiesdse..f33inMMecdcuoonndseindreUrsSsn,neigetetndddeerebaetlftloyrbbseecsaasnnepd accountingprinciple and raypotbe compute the smeassimilarly led measures usedby important measure of liquidity and its ability to meet ongoing obligations. This measure is not accounting principles and may not be computed the same as similarly titled measures used by thrcompanies. def'med under U.S. other companies. generally accepted (oCCapaseshrh,t,iccnaagsshhaceetqiuqviivtuaelseinftvs5aaa2nnddlmbmaeiraklrnekote.tatabTblshleeessCeeccuuorritiitmeisaehapsatDsDesaceucefemfnmibcebiyreenrt3311l,,i22q00u11i00ditttoooyttaamlleeeddetaappcppurrrooexxniitmmlayatteaelnlyyti$$c5i5.p.00sibbediilllgiorono,w, thhheellpppaeerddsbb,yyincccaalssuhhdiffnllogocwwasspifrtrooamml CCoexxoppmpeepernanadtndiinyittg'ursreaesscsi,t,iovwwcikotoi.rerkskHiioonnwgfe$ccv5aea.p2rpi,tbaatillhlieiinoCmvne.esoTtsmhtmeemnCtpesodmnaaoanntpdsdahnnaaccyaqqvyuhuieaisssiictstoiiuonofnfnfsiis.cn.giTTeenhnhtieeClliCyoqmocuompindavpitenayrnyttyiodbdmlooeeesdseetnobcottuthruuraettlin,liitizlzfyeecaddonneetdrifiicvatiapittaoivvtneeesfdiirngnsrcottrwoummtnheenpvnlttaesnlisrin,nskkirneeeicddmluotteodontithnhgeeis:capital cCoonmveprtainbyl'es snttoocskh.aHroewsoefve3r,Mtchoe mCmomenpasniycdkoresehfaevtero cNoontei1ng0einntltyhicsondvoecrutimbelnet)d.ebt that, if conditions for conversion are met, is convertible into shares of 3M common stock (refer to Note 10 in this document). "PTThuheceCuCostmoempaspniagynp'yi'ssfiffcminnaatnnyceifiaarlloccmoonmnddoiittniiootnnthaoannmddonllitqihuiqddeiutpyeainardredeinsistgtrrotoonnygg,s. hVVaoarrriitoouuessraaqsssseuttsiaadnnddnileiaebbdsiil.itsWieo,sr,kiiinnnccllguucddaiipnniggtcacalas(shhGeaafnnnddessdhhsoosrrtct-teuerrnmtddaeebbst,,sccaamnnins cifclunuurcrcrrrteeeunanatstteellsiaaswbibgielinirtliifeeipcsr))ainmttotaoltrtyaailllfeerydodtm6$6i.m.11ro22bn66thabbiitbllolliiiom0onnoiaannttcthrDDeedeacecsepeesmmenbibdeeircrnag33s11ho,,an22n0s0dh11c0o0a,r,tcs-cothoemmrqpmpuaarliireqeldudtwiwdisitit,tyhhsn$$he55eo..d8ts99.t88WebbmoiilrlmlkiaoionnrgkaactctiaDDapeeibtclacelmes(dmbceebufrm3er31ei1r,d,s22a00ss00sc9c9.uo.rurWWneotnorstrkkaeiiscnnsiggevtsccaaambppliiintcaaulls increases were primarily attributable to increases in cash and cash equivalents, short-term marketable securities, accounts receivable acndmidnevebnttoarnidsesc,cowhuincthswpearyeabllregly offbiy decreases inworking capitaldivenby icreses in cunt ibiltis,primary shor and inventories, which were largely offset by decreases in working capital driven by increases in current liabilities, primarily short- term debt and accounts payable. PrmPairiimmnatarariyynssshhoorctrt.o-tmteemrremmrclliiiqaquuliidpdiaittpyyennreeeerddossgaraaeremmmtehetatttthhfrrlooouuwgghsh 3UUSM.S.t.cocohommameemrec4ricmaiaallxppaiappmeeraraaonnddf3aeurbrooiccolomommeomrucetriscaailanldppianappgeewrriistsuhsauanamncaceesxs.i.TmThuhemeCCmoaomtmuprpaiatnnyoyyf397 dumdnaaalyyiissnkftefrarliooyntmmshaddatacttoeemoofcmsfcuiesrcascuniaacnlfeocp.eat.hpeAAerscsopoofrmofmDDgeereraccmceeimmtlbhbpeaeatrrpa33ell11ro,,mw2a2s0r0k113e00Maantnwodidlhl22a00bv00ee99,ra,e33msMtMarhixhcaimiadddu.nnmEooffouoefuic$ttssi3ttvaabendiAdlilpiinnroiggnlcco3oou0mmt,sm2mtea0rne0crd7cii,ianalgtlhppweaaipCptehoerrm.a. pTmTahhaneexyCCimhooaummsmppaamn1n.yay5tubb.bereiilltliiyelevivooeefnss3ii9tt7sis. dufivnveileik-yyseeelayacrrtchcrraraeetedndiitditsttpffraaaiocccvciilieloisdtsyinn,twogw)hthfiho,icechhcuohhpamastmpoSprer1oro5cvvi0iaislmisoiplinalspoieonfororsnrmithahnerekCeCteoteorwmmsioppllafabnrenydrttyeoo.strrreieqcAqutteeuDdsee.tcsaEanetnffmeiibncncectirrrvee3eaa1ssAee,p2oor0ffi1tlth0h3ee,0,ffaaa2vcc0aiii0lllii7taty,ybtluuheppeshttCoooor$$m22pbebariinlmllyilochnioaoms(aamntatitt$thh1eee.d5lle-lebninidndleelerisrosos"n'f cadcprirespcddrrioietx,tiiiionmnnacc)tll,ueudaldniiynnd$ggp2thr5hoe5evmpipidrlrielnecigceodenfiodwnrigsunp$g11.lt.o5i$bbzi1iell5lldi0iooimnnnfcifiolivlvnieeon.-enyyceietanairrolecnctrrtweeedidristitthofffaancccioirlleiirdttyyi),t,.ttbooAutttaaslliDeendedecsaaesppmpaprbrtooexixrivim3mea1ta,.et2el0lyDy1eS0b$1,t1.a.c66v77oa44ivlbabeibinllllleaiionosnnhtwdoswoornrto-olrtedldrwemwitdidcieoe,c,moofmtfhwiewthtpheiaidccyhhlmineenstoof f davpipdreonxdism,ately $255 million was utilized in connection with normal business activities. Debt covenants do not restrict the payment of dividends. Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ama 31/114 7157588..00003311 zane Migs heedOTIOOIOUSEHIAOIO20T80A_HSOk om 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm "TheCompanyhas a"wellKnown seasoned suc"shelegistation stem fective Febnary 17, 2009, which rete an The Company has a "well-known seasoned issuer" shelfregistration statement, effective February 17, 2009, which registers an indeterminate amountof deb equity suri fo futur sls. Nosecures ave ben sdunder indeterminate amount of debt or equity securities for future sales. No securities have been issued under 333 `TabTleoofifCCoolmnetreenst:s chthoiinssnhsehceetlli.fo.nwTThiheethCCooammprppiaoarnnyy"wiiennlttelenndkdssnot0ownuussseettahhseeoppnerrodocs ceeddss fru rsoohmmelfffuurr tteuugrrieestssree" acctuiurorinitt,iieenss ssJaluleensse fo2ff0ft0hhiihsssesChheolemffpfoloarnggyeenneeesrrtaaallbclcoiorsrhppeordraaattec3ppuubrripplolosiseoenss..meIInndiumstceorurmnmenedonctoteftieosnvprwroyoigetgrhararaa,mmS.p.5rTiT0ohhr0rrm"eeiwedleldlolet-nbk,tsnsfoeeiwccxuunerrisrteeiaeastssohhnnaaoevvtdeeebwibsiesntuehneirai"sscsssouuhueeepddlufounrnnedgdaeiesrrtrthoahitfiisso4mnm.e,6edi5dni%iuJu.ummSne-eetce2orm0nm0dn7,nootithetneAsesuCppgroruoomsggtprraaa2mnm0y0.F8Fei,sirtrIsaM,tb,iliiinnsshDDseeudececadeemm$fb3bveber.irl2ly2i0e0o0a0n7r7,,m,S33e5MMd5.iu0mmomiistlsielulleoiwodnin,ta,hfffi'iLxvxece-doyuraepataotren, ron$ot5tt0see0wwomifitti4hhll.ia5o0ncc%o,o.uufTippxhooennedCrraaaottteemeoponffao44tne..3y3w7e755nit%%th,e.arTTechdohiiiurrnpdd,oo,sniinnnrOaOctiectnttoooebfbree4ersr.t6r225a00%t00.8s8,SttephhceeonCC0dooc,mmoipnnpavaAnneuyyrgsiutshessitus2deSd0S0a08ht,0hr3mrciMeelel--iiyysoesnaaurnredc$$83ea00ft00oivmmei-ilyllleiioaotrnn,,i, $nff8igxe5re0dtdert.aete note with a coupon rate of 4.50%. The Company entered into an interest rate swap to convert this $800 million note to a floating rate. "fTThrheoeCmCoMomompodpayann'yyshIhanavsseasantnoAArsAASe-crcvrrieecdei.t raTathtiienngC,,wowmiptitahhnaays'sttsaabb3llee5c0ouumttliooloolkko,,nfrrooofDmmeSaStltaaennrddaaerrmdda&&skPPcoiooaorb'r'lssaeanSneddcauarniAtAiueas2chrcaerdeddriaitttrirnaagtisinng,i,wgwigeittrhhsa(sBsttBaaBbl.leeoBouualtoloaokok,r, oSflor1wow.em5re-)rM)bhitohiaoaottdnwwyfo'isouvulIelnd-dvyreereeasqqtroucuririsrreedSrireteerppvcaaiciyyemmt.eTeynnhttaeogofCrfeoddemeembbept.n.aTtnTh,yhe3'essMse$es3sse5er0cceuumqrruiiietlilresieosdnwwtoeeofremeDarrieeentattiliearreriedndRuuteppsmooEannrmBkmaeIattatTuubrliDeitytAySoieinnIcnDuDtereierctecieesetsmmbRhbaeaetdrri2or20a031ti1s0no0.g.fstIInthnraeidagddegidnetidrtiosioof(nnB,c,uBauncBndhd-eieBfrritasthchaea3el or CQqo$qnu1usa.i5err-tceeburritltailitvonennooqftuilvlaeeerss-tssyteterhesaartnnhc3er3.ne.e0d0i1ntto0dfea11cd..TiTlhoithiytissatgisreccieanmltlceeurnellast,tte3edMx((pa1eissnddsreeeefoqfiiunnnieearddeldiintfotuthhnmeedaesaidggnrrdteeaeeeibnmmteifnetostn)tE)taBahsITtsthhDaeemAraeattptoieiorIinoofotfedrcc.eoosAnntLssRDooalelitdcdioatetemaedsdbteotoorfttat3ahl1le,EEeB2Bn0IId1TT0oDD,fAAieafsfcoohrrrtafthhitseoecfafwoloiuusrr approsimately 35 to consecutive quarters approximately 35 to 1.then 1. ended to total interest expense on all funded debt for the same period. At December 31,2010, this ratio was 3o3MnMg'stccaeassmhmaaannrddkcecatasashbhelqeequsiuevicvaualrileetnintetsss,bbMaall'aasnnccseeraaottnDDgebeaccelmeanmbcebers3e3h1r1e,,e22t00n1100dttoqottaualleeidd$t$333p.3r77o77vibbdiilelllihiooenn,C,owwmiittphhaaannnyaawddiddtiithtiosoninagalnli1$f1.ic.66a44n11tlbbeiillilliiboonniiiynn ccfuourrkreenentt aanndd aClaooddnnvvtgaai-nnnttteuaaarggmleermooffamenrkueemortvafeobrloauiecusqssueieoocsppuiptproiiwotorirnettusu.nonpi3itptMioeerss'tsuggsnoitiirntnoiggnefgsfoobr3rvawMalaarnrdpdc.e.eTdTshhhdeeeiCeCvtioaondmdepsmlaionqyufwpiwdiSilit.layll cpbooirnnlonltvtiiiinoydnnuueeitnhto2eiiCnn0vvoeemssa1tptnaninsn0hyoiatspsw,eoirtphaelrtsoainigtgiononiinfsssictt0aornydtdorrfiilfvevdxeeiigbgvrriiloodiwwteytnthhtd,o,niitnaenckcslelsuudediisnn.gg IecInnqoFunFietevbinbarluruueaanalrtrryye12v020i0ae1n1w1,a,on33nfMuMaa'cl'sqsBudBiosioirtaviroddinodooffeopDDfpinoitrdreettcu$ton2o.r2ip0rtssieenisrn.src3aerMeraaessp.edadiIdtnthhFedeqeivuqbiaurdraeatrnertedryrls2ly0yo1dfd1i$i,vv1ii.dd53eebnnMiddlolBoiononna33riMMnc2oco0foD1mm0em,mcoaoonnndrssthstoaocsclkksahbbloyyon44gr..88hzpipseeetrorccrdeyentnothtfet0odei55vp5iudcceerenncntdhtsssipnepecoerrrefasssphheaa1srr.ee0,, equivalent to an annual dividend of $2.20 per share. In February 2011, 3M's Board of Directors also authorized the repurchase of up to $e7s.0tbiallbioin eionfhd3dMei'tdsec,utstanding commonsick,replthaeCcomipanny'gs existing repurchaseprogram.Thisauthorization as po pre- $7.0 billion of3M's outstanding common stock, replacing the Company's existing repurchase program. This authorization has no pre- established end date. pI1ne0n22s00i1o11n,,attnhhdeepCoCosomtmptpaiarnneyymeexexpnpetcectltsastntoo.ccoTonhntetCrriobiumbtpueaiinnncycadassohhcaasnnnaaommthooauunvntet inrttehqheuirraranendggmeeoiofnf$i$4m40u000mpmmeinilsllliiiooonnn ttocooS$n66r00b00ummtoiilnleiononb1tloigifatsstiUUo.n.SS.f. oaarnnddaiiUnnStte.errnnpaattaiinoosnnaall ippinnle2an2n0s0s1i1'o11nf.uaTTnnhdhdeeedprreoesfsoftrrtoee,rttaiaterhhee,temoaaeufmmntothsouepunlnat2tn0oos1f.1f tTthmhheeeeaaanCstnuioticrmcieipppmaeaatntneeydtdddddaioitseseccsrratneentotihitoohnneaaavrryyenctcaooinrncettrqpriuiabbiuerutedtiditooanmncicondouiumlleddumvvadaprryyesunsisiggincooninffifitcichcoaeannnttclrtlyioybdurdetepibopenneindonidbni.lngiggFauottinuortnthheefecooUUrtSi.rSt.sb. uUqqtuu.Saial.oliipnfflisiaeewdndisll plans' funded status as of the 2011 measurement date and the anticipated tax deductibility of the contribution. Future contributions will usnoddfeupteunrdopennmsairoknneeecdonsdwiittihonosu,tcnoemrpsrraotems iangsrcioawnttehgrfacptopros.r3tM.believes rong ashflowandbalan sheetwill low i 6 also depend on market conditions, interest rates and other factors. 3M believes its strong cash flow and balance sheet will allow it to fund future pension needs without compromising growth opportunities. ""TTThhheeeCsCeomomempapsauannryeysuuasseeessvnvaoartriiodoeusfswiwonerodkrukininndggecrcaapUip.tiStaa.llgmmeeneeaarssauulrlreeyssathchacatpttppellaacceaeececmmouppnhhtaiasnigss apiarnnsiddncffioopccluuesssaoonnndccmeerrattaayiinnnowwtoobrrkekicinnoggmpccauapptiiettadalltaasesssseeatssamanendadsllissaibimiiillietaisre.lsy. aitTicethlcedeosdeummnemtaeesarasuseururieresvesasuubaesereed,dnbibonyytvodoeneethtfrieonrrceycodoamumnpndapdanacenicrieoeUsus..n.StOO.sngnepeeaonoyefafrtbatlhhleley.ppaTrrchiimcimesaaprrctyyeowdmwobaoricrknckioeindnugn,itcnciandapgeptxiptaa(rllidnmmeceifeapaislseunusrereesadssnqd33MumMiausyrsesnesotinissebtae scccaooolmmmesbbpiiunnteeefdddoiuitnnhrdtdeehexsx,qa,muwwhaeihrcaithcsehasrtiiimnnycceilllauaurrdd-leeyessnd -daec-cclmloiuuninelttpisfpiroleiemcdde5ibbv.y5yabafflooeDuu,erri,ncddveiiemvvniibdtdeoeerrddyb3ba1yyn,ed2e0na0dc9nicn,ognuRnineetetsctispancavcyccaoaobbguuelnnsets.sirTnrecehcrciiesevaicvsaoaebmbdlSlebe3ipn6ple5ludssmiiininlndlvveiexronntt(,oodroreyyrfmll1eee1ssds2saapcscecroqocuueuantnrttts,secrppolayamyyanpabeablterles)ea)wdlwewasiast-sh-55..fD33oeuaacrteDtDhmebecqceueerammrb3tbe1e,errra233t011y,0,e9a22r00w-11ei0tn0,hd, a hahdicieggcchhloieenurrenDDtefrecroceemecmmib5bv.e5earrba22te00D1b1e0y0cs$esla9mel3esbsmecircolo3lmm1ip,opan2aar0rene0ddd9t.ctooRuDeDeecnceececivemymabbbreleaersrn2l2i0na00tc09ir9eosanslsaeeilednsscc$rco3eno6tan5rstirembiabuciutlclitiinoongung,nftootorrthh1ei1issi.2iivnnpcacerrberecaeasesebne.ty.,ISIcnn8oama2dddpdmiatiitrilieooldnon,nw, ,caiqctahquiuDtsihseieicitieUoo.mnnSs.bs deirnorcl3ra1ee,raw2as0eedd0a9k,ewniethd "iaiTnnchaceagoiggungrvnroeetsggnaatretotecreayaiiggvanaaicibnnrlsesetabsaymems$uau9rll3teipttmuadierlelitoooflnfyccauuntredirneiccnbuicuricrteessan..bcIIenynvtvteorenantnhotesorliraiietensiscorniieniacnsrnceeraecsdaesdeeSrmd$5a5ea11nc66cdamomiiulnsinlltil2sioo0enr1ne,0,cdo.eoIir1vn91aa.9bd6.dl6eiptpbeieyrorcnc$e,e8nna2tct,,qmcucoiiolmslmiipotpainaro,rneeasddsiwntwihcetirtehhUaDDs.eSeec.dcediemonmvlblebaenerrtrw3a31re,1ia,2ck20eb0n9y0e.9d. cST$o77hm77empmiianlrivlleeliodnontnwoyirytyehaeinDr-ceoracneea-ymsreebsaer-ra,wrwe3ho1hip,ila2lnre0et0cica9uu-l,rlryerwenyiancttcythreyiatbtrcruaaqatnunasibslsrllaiaetttiii,toooonnnsthiinenacccircrneeocaaurssneeetaddisneiignnivvnefenodnrtetoom$r4riaiemenssidbbliyynl$o$2330n551o0mmf.iiIlilnllisooanndc..driAAetcicaoccnsoo,euuannacttnqssduppicsaaiyytuiaaobbrnllseeeiiinnnctccrrrreaeenaaassssleeeaddtdiiS$on2n2v00ae99cnctmmooiruililnelltisooibnnngy Tor $16 millon, with th balance primary relate fo improvement n business sciviy. compared with December 31, 2009, with acquisitions accounting for $46 million of this for $16 million, with the balance primarily related to improvement in business activity. increase and currency translation accounting u34 `TabTle iooffCCboomnletesnet:s CCCoaanssshholfflilodowawtssefrdrooSmtmatooeppemereranatttiionnfgg,,CiainnsvvheessFttiionngwgasanedxfcfn'lmaudaeenictnihngegaeacfcftteicvitisvtioeifsaaarcrqeuippsrriootvviiioddnees,dd dinnivttehshetitatabubrlleeesssattnhhdeaettxlfcoohllawonw,g.eIInnrddiiiveviidpduuaaallacammtooosuunnncttsaisinnh tahhneed cash Consolidated Statement of Cash Flows exclude the effects of acquisitions, divestitures and exchange rate impacts on cash and cash Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ama 32/114 7175588..00003322 zane Migs heedOTIOOIOUSEHIAOIO20T80A_HSOk hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm equivalents,whicharepresented sparc in thecash flows. Ththue smsoun,ts presentedintheFollowing operating, invesingend equivalents, which are presented separately in the cash flows. Thus, the amounts presented in the following operating, investing and Financing stv table refoct change inbles fom period period dustedfor these cfcts. f'mancing activities tables reflect changes in balances from period to period adjusted for these effects. CashFlowsfromOperating Activities: Cash Flows from Operating Activities: NaYears ended December 31 (Millions) amo 20 ano 2010 2009 2008 DNeNeprteeticinniccaootmmieoeininncncllduudadiimnngegrnnoionzncacooonnnttroollilinngg iinntteerreesstt. CCDCoooemmpmpprpeaacanninayyytipppoeeonnnsassiniiroodinnraeccmoomnoentrntrtrtiiizbbacuutottiiionoonrnnissbuons CCCCoooommmmppppaaaannnnyyyy ppppeoeonnssststriireooitnnirreeeemxxmppeeenennnttssceeeoxpnetrnisbeutions LoSCSsttoosomc(ckkpa--aibnbanays)sepddorsccotoormmmeptsiperaenelnsmesaoeatftniibtooenunxseepxxieppnneesennesssees ILIEnnxocccsooesms/m(segeatatiaxanxxb)eeesfsnreo((fddmieetffseesarrflrreeeoddoamfasnbntdudosacaicnckcecbrsrauusseeeedsddiicnnoccmoopmmeeenstaaaxxteiesso))n AAEvcxcecccnoeotusuonsrntittsasexsrreebcceeeniievvfaaibbtslleefrom stock-based compensation APcAIrncocvodceuuonncuttotnsrtasienppsdaaayytaabebllreeinsurancerecivalbisandclaims ONbPOertetohcderuar cs-th-rapnneredottvoitdheedr insurance receivables and byoperatingactivites cl aims Net cash provided by operating activities sues sams am 4,163 $ L120 List 11s 1,120 s (6) an (556) az) (62) m 176 271 st i] 16 51 m an m 274 -- -- xn -85 st wn 85 ) a en (53) as) 5s 197 (189) (0) Ey am (404) 146 1 @9 146 1 r) 1s 49 2 69) i] 279 $m 5am 5am 5,174 $ 3,244 $ 1,157 (659) (133) 176 47 217 -554 (14) 55 453 109 64 (329) 4,941 $ 3,520 1,153 (421) (53) 89 16 202 23 (44) (21) 197 (127) (224) 153 70 4,533 dCCaassihh ffllfoowwssfafrrnoordmmheooepperernraaettimincnsggcaaceactnitivvisittgiieenssicfcaeannanffllluyccutiuamatptaeecsstiiggcnnaisiffhiiccfaalnnotwtllsyy. ffnrrootmmoppeetririoniddoqtdouappreetreriiroooddf,,2aa0s0pp9ee,nnstsihioeoCnnoffiumnnpddiainnnggydedcceiocsinisiotonrnsis,,bttuaSax6tii0mn0imngigllion to oditismffcUUe.a.rSSes.n.dhcdeeefasfciitannineevdiddtbobyetenshneenefrifoiitttepepmeelnnsesscciitaoonenndsppilligaannnntihfiiienncaossnhhpataelrryreessiamotofpiftantohhcrgeteCcfCoaaosmnhmpcafplinoanwyny'ss'e.sscItccnioootmnhmemmootfohntnirhdssettoqocccuakkas,,rhtwwefhrhliooiccwfshh2.i0iss0cc9o,anthsniedCesroeimd dpananeononyrn-c-cceoaanssdthhrifbfiiunntaaenndcci$inn6gg00aaccmttiivivliilttiyyo..nTTtiohsis non-cash activity is not reflected in the operating or financing section of the cash flows. oI1np0e22r00a11t0i0,n,gccaacsashhshfffllolowowwsspsprrroeovlviiiedddeeddtbobyyyeooapperreoarnatti-inyngegaaacctntiievviistiseesisinncicrrneenaaseseedcd$o$22m3333emimiclilllaliiodonincncogonmmopnpasaroreenddtrt0oo2l20n0g00.9.inTTthehreemmstaaiOinnpepproostsiiittniivgveeaccsoonhnttrrliibbouuwttsiiwoonen rtaoe pfpoepeinennaraealitlsziniewgdzobecbkydayiwswhnogroflkrockiwainnpsgirlcecalaa4ppt3iiettadaacltcoiionnuycncerterasare-saroeesnsco-eoyfifevaa$$br44l4ien77,cmrimeniiavllselleinootsnonirniiinnens22e00ta1n1i0nd0,c,coccmoooumemnpiptnasacrlerupdedatyidoonagbwwloneoro.rknkTieihnnoeggnsctcareaopwpiloltiritankalgidl ndigneetccerarecepasistte.rasOoloefpifSen$cr6aar61et1ia7n7ssmgeimslecwilalilseisohonenfloiipnnwa22rs0t00wa90le.9yr.e3MM1 Sadacttetefbriirunbeteusdatabiwblnloeceroktoomintetghheacxarrepaaspip.tiiaddl increase in demand in 2010, In dion, operat cas flows in as accounts receivable, inventories and accounts payable. These increase in demand in 2010. In addition, operating cash flows in 2009 bene working capital 2009 benefited fom changes indeferredad increases were partially from changes in deferred and accrued income taxes. oI1np2e20r00a0t9i9,n,gccaacsashhshfffllolowowwssspprrreoloviviedideddtebobdyywooopeprrekaritaintningcgapaaictctatiilvvidittiieeessiicnncrcreoraefseSeaa6d1sS$s744e00dm88immilllilolliniooninnc2co0om0m9pp,aarcreeoddmpt0oa2r20e00d088,t.owTTohhreekmminiaginncapppooissititatiivviee nccoocnnttrrriiebbouuatftiiSsoo1nne5ttsoo4 ammocipcilelrllriiuaooetnnidniiignnncc22a0o0s0m0h8e8.f.lo3a3xwMMpsoddrseeeftfliaiinntoeeendssswwtobooerwrnkkoeiirninkggeidnccga2appc0iait9apllictaaaaslsadachcecccoolrueounawtnssste.sTsreheoccfeee$viev6a1abpb7lsleiem,,diiivlnnlevivoceennononitnorbri2uice0tss0ia9aonn,nddcsaoawcmccecpoorauuernneptdtassrptptoaiayawyalbalolbyrelke.oi.ngIIenncaabaddpdydiititataiilodoinnen,,ccr3IreeMMaasss'sesdodfeoefff$ee$2rr1rr7ee56dd4aanndd ammanciidclllrTliuooaennidliiinnincenyoetamtciicennocctuaoonxmmtespei.oinsTnihcutiilouslndiisinnnbcglenunnodeonefncsicotteonhdniert2rio0oml0lpli9iannccggtasioinnfhtteecfrlraeoesswtsh.t.so.TTwThhleheaeyccssaaettfeepoggoroosrFriyytsi,,vt""euOOccttoahhneertrrrn-innbgeeuttpt,,i"oaniiynsmntweheeenrptperspeer,catertedfiainrlclegysaettoabrbfuldfcleseteruirtrfebiefnnylcgeeactgxtsdspeccechhnraaesnnaegsgseee,ssowiifhnni$toc2th7hh6eeorrnsaastse.t Combbaissnredeucded Habilis(Note and liability accounts. This includes the combined basis reduced liabilities (Note 4). In addition, deresss impact of cash outlays for 4). In addition, decreases in bankedvacationaccra restructuring payments, net in banked vacation accruals reduced lilies. of restructuring expenses, reduced liabilities. which on a 3s 35 `TTiabblleeooffCCoomnteensts: Free CashFlow(non-GAAPmeasure): Free Cash Flow (non-GAAP measure): TiInnnadaiddcdadittiitiiooonnno,,fttootheneettt cceaansshghpphrrooovfviitddheeeddCbobyymoppoeaprenaryatatiinnndggaactctstiisvvbiititileetssy,,tI3ogMenuusseeerssfaftrseeacscahas.shh3fflMloowwdeafaisn3eassufserefefullcmmaeseshasfsuulrroeewooaffppceetrfrcoarfmshoapnrrcoevmaianadndednadabcssynaenpersing aaiancnctdtdiiievvciriatttiiUieeoSssn.elegossefssntephprueuarrslcctlhrhyeaansasecgesctoheopfoftpfpertdhorepaecCrcotooymu,npppptllaiaannnnegytpt raaainnnrndddceiietqtpqsuluieaiysbppimmlGei,tenAyntAttoP((ww)ghihe.cnihcTeihshraecitsrleeaccflsaaosssrihsefi.fii3iteeMsddhaaodsuelnfadinnneoiinsnvvfbeerseestetciinoncgngassaaihccdttfieilvvoriitewtydy)).aa.sFFsnrureeebteetciccataastsshhehpfflrolooorvwwiidiinessdnncbotyt oddoeepfcmfeimarnseaeethdding SufholnoowdwueldrddaUantt.aoSptp.brrgeeeeppnanaerrfreeadrdlileiynndaaatccchcccaeootprtrtddheaaedcnnaccaceewciwoiutitnhhfteiUUne.g.SSc.p.arsGGihnAAfcAilApoPPlweaasanmn(dGdoAummnAaytyPs)nm.ooaTtvtbhabeieelreccbfoolomemrpepfa,oarirdataibsbslhlceeorutetooltdsisoniimnomatiarlbayleryelcyxoprenilnfseldiediddtemurmereeadessa.ausursBrueeebsslsuotusiwsteuedftdeibnbyfdyoartroihtnhaeceroprmcocoeofmfmoprpsacanasisceh.as.shIt Tsohwoufldorno2t0b10e,i2n0fe0r9re1d2tdh2a0t0th8e. entire free cash flow amount is available for discretionary expenditures. Below find a recap of free cash flow for 2010, 2009 and 2008. -- = = Years ended December 31 [Er ------ EE (Millions) https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htrn 2010 2009 Eo 2008 33/114 11775588..00003333 zane 1/13/2018 Migsohcivesadg Got OTIGOIOBSOHIIO2O08T0_A1OSk Hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm NNPeuetrtccchaaassshhepsporrofovvpiirddoeepdderbbyyy,ooplpeaennraitainnnggdaaeccttiqivviiittieepss m(ePPnAt) FreeCashFlow. Purchases of property, plant and equipment (PP&E) Free Cash Flow CashFlowsfrom InvestingActives: Cash Flows from Investing Activities: sosmos ass asm $ 5,174 $ 4,941 $ 4,533 10) om) 171) (1,091) (903) (1,471) $m Taos 5_som $ 4,083 $ 4,038 $ 3,062 Years ended December 31 PSurachmaasesoFpropery, (Millions) pantand equipment (PPE) PArPPcoruqocrucceieheseaddsisesosnfrrosoof,mmpesrsotlapoleeefrotocyfaf,PsPpPhPlAaa&ncEqtsuaainnnrddeddetoqhtuheierprmsaestsnetst(sPP&E) PPAPurrrcoocqcchueeaieessddietssisoffnaroosn,mmdsnpesrateoloceefooecfbdfasubsfsuhrisainoncemqessusssiaeerlessdormaturitiesofmarkeiable tPuSesrecerchcuuainsrrvieteesisestasinwnadgndpdsrcioinincvvveeeiesstdttesmmsefenrnottsms -s-anlneeeottr maturities of marketable Netcaesdihn investingactivites Other investing activities Net cash used in investing activities mo 0 sno 2010 2009 2008 5 am wm ST aa $ (1,091) $ (903) $ (1,471) 25 7 5 25 74 87 an @ 1399 (1,830) (69) (1,394) = Ss 8 -- 5 88 m 9) 2 273 (839) 291 6 a (66) -- s Tom Te $ (2,689) $ (1,732) $ (2,399) mIInnavvneeussfttmcmetennrttissniignnpeprfrooippceeirrettnyy,y,p.pllCaannpttiaannsddseepqqeuuniipdpmmienennittenencnarabeblaleesgegtrordooww$t1thh.0iin9n ddbiiivvlcelrirsosenemiman2ra0rkk1ee0tt,s,,chhoeelmlpppiiannrggetdoo0mmee9eett0pprromoiddluulccittodndeenmma2an0n0dd9,ainnIddn ii2nn0cc1rr0ee,aassiiinnngghe US, 3`m3SMMianngiiunanfpvvaoeecrssteutt,eerdid3nMiignn esfffiiflilicnmlicemmrnaeacannsyuiu.fnfaCgaccacttpuauirprtiaiannlcggsipysaesanestdestissnfgfoomirronoolcprptteitaicpcsauaellpdssotyysossett$mee1amm.n0ssu9faa1anncbddtoiloutltrihhoieennrrgninnoofn2an-c0-ia1olpi0pti,tyic.ccaoallmbbpuuiassnriivennedeesssttsosmeees$sn9wwt0sh3hiiicmcnhhtilhuulseisoeInssiiinnmmi2illd0aa0rr9uttae.encIcshndhnT2notr0olao1lngr0osy,.p.iionIIrnntaahteiloUn.S., KbbSouuirnssgiienan.epeCsossarpeiiin,tc3alnMuldseipcsdesinsnldolcailrarenraugesoinennredgsrggyocyaeimpienaocdhtfhiteeythUUae.t.SSpi.tr.seaacmnneddudiliitnning-ddpupuusrstrotrprjiioeaaslcletaasmdwhaihenlsuivfscaeacstriuaayrnnoiddnvvgtteasrfppsaieecnssitloiiitn2ny0.CC1h31hiM.innTa.i.nh33veMeMCstolammlsesponatiisnnnvivyneesesttthxeepeddeIcinntndsoou2pps0ttti1ricic1aaaclllaaffpniiidlltmlaTlccrsaaapppneaascncpidiottiyrytnaiigntnio0nbe approximatel$y1.311.4 billion s 3Mcontinues ofundgrowth opportunites soundthe word. Korea. Capital spending on some ofthe preceding projects will carry over into 2011. The Company approximately $1.3 to $1.4 billion as 3M continues to fund growth opportunities around the world. expects 2011 capital spending to be 2IT0nn0rr9eessspppoeonnnsdseittnoogwgglloosbbacallaemeccyooonnvooemmriifccroccoom2nndd0ii0toi8ononssr,, tfthhoer Company reduced i capitalspendingsignificantly in 2009. tCooolmipnagnnyeerdedeudcfeodrniteswcappriotadlucstpsennddincgosnitginniufiecdaonptelyraitnio2n0s0.9I.n A A 2 substan] 0s0u8b,smtaanjtioarl amount acmiotuynt ofhe of the ei2enff0Kff0ooo9rrrtetssapii,nennccldlutuidnadegepddewbccuaooismlmdcppiaenlrtergtyiiiooonvnnoPeoorflffpapronrrmodo,dau2d0cnut0dic8otnmoilreinnofreoensorstuiionnsotttlhiphneegUUlnnniienietteedesddeSadSniftdsaoterbesunsiefflowodripbnborgoottedhhxuCpCcoatonnsnssaisunuomdnmseceriornnaatnnihnddiuOOnefdf.ffIioiccnpeee2rasa0nnt0ddi8oH,Hnesa3e.alMIltanthhl2CsC0ao0aemr8e,a,,dmaanenapjRRoror&&gfDDraecsilllasbibt.oyorrsatoorryy tptioonrwwoKagarroredrdsesssacc,otoamomwptaalprpeldeetstibicoouonnilomdofpifnitignnocvinnsestPotmmofeleanmnnttdsas, iinannnuad SSnfiunaimgacenproocurgoessmtmtauaelpudpeluticl-ioplpnuiuerorrsppnoaoesnisedenvbmmeuaasnilnuedufoiafntacgsctteuuixrnrpiitnnawggnosffoiaaocfcniiilsltiisttiynyUnaCSn.dhdinflfail.mmmImnppar2roon0dd0uuu8fcc,tct3iitoMonnriaffalnlscoipillimteaineastsdseaannpddrommgaraeddsees progress towards completion of manufacturing cost reduction investments in two of its U.S. film manufacturing plants. CRReoefmfeeprrtatoonyNNoiosttees2c2ivfooerrlyiincnfofonosrrmimdaaetrtiiioonnngoonadaadcciqutuoiinssaiiltoionancsqs.u.iNNsiotetieon22sa,alsisooppnrroovvviiddeeess iinsnnfdfoottrrmmeaamttgiiooennooalnnnattnhhtceeeppssrroo,cceexeedddssffforromommtthihmeee ssbaaolleeiomofefbbumusasiiynneesasslsesesos,.diTTvhheeset certain businesses. Company is actively certain businesses. considering additional acquisitions, investments and strategic alliances, and from time to time may also divest pPrPiuurmrccahhraaissleeyssaootfifbmmauartrkkaeebtteaabbtlleeassseecscuuribrtiatiiceeskseaadnnsddciiunnivvteeissttsmm,eennattgssesanncndysppcrroacoerdesdss,frrooormmpassraalletc((moorrmdmmatau.ridtiteesm) oooftfmmtaaessrkkeett)uabbllersseancedurroiitistesseaannsddcuiinrnvivesset,smtwemhneitscnhatrrsce apavrrreeimscctalamrsilelsyniftaaisettdri1sinabssussatatavvb-aailbiielaaatfbbcollkeaeie-sffdsooesrertc--ssbuaadlarlecei.k.ieIIsndn,ttesewerreechssuittrlirretaiaftetecs,orriiarssgkskenansncdudycchcsrereaecdduigirtetitnriiieesskrsk,arrlceeocllraoptaneotddriaeotitdoteonhtmhsieeudnuninduhedmere-lrotlyevyierinmrngagclnlocolcotlrelaleatsdteeierctraumalrlaimmrtikaeaseyyamainmndppdoactchhteethnrheaeseavvcarualruliotefiuoeotfsehf,ewhich useunincdnuvedrreeilsrtytlimiyeniesngnagtcrscoeiolnillltaatsteeesrrreafat-lmbxmaadcaykyaeaadffffsecoectcrtufthrhlieoetiaelltsiiq,nuiwgi,dhFqiiltlyeousooftfafinciigtnnodrvvrseetisssettumcmtceoehnunytaptsssonignsaenasrseessrs-eaeltb-tcbamoacnnckidkebietdldioyssnoesurcuirnqreiuttahiserets.e.orvTTlehhyreebaalcclsooceuurppdeuodopnintoimnnttarerherkeesesctttoaarranertdeesssthfpfeooornrnadaasitsusnsrgteemt.-boobarafccithkkleeeyddor reqqsfueulacearucrtrtteeiirtrivlleyeysoLLafIrIeBtBOheOiRtRhreeraartstf.eti.xEEesdaakccrohhafteiitnnhoddeirivvifiilsddosuuauaatelilnrffgnll.oodFattilionnhagegtuiarnnagdeteerrsasleteeyccuiucrnorigiuttcyyphlohanlassserraecascoeotouumppnoootnnnhbetbhaoalsrsyeeiodgdnruuaqppluooasnnrutttehehreelydrraebetssaepps.eeeTccdtteiiurvvpmeeosLLnIIotBfhBtOeOhRRceorrrreartseteecstp++aor/-nedaainnngaammmoouounnnttthly or reflective of the credit risk of the issuer and the underlying collateral on the original issue date. Terms of the reset are 336 `TabTleoofifCCoolmnetreenst:s reunlniaiqqtuueeedmttoaotiiunnrddiitivvyiiddtuuraaelalssseuecrcuyurbiritotiineedss...TFFhiiexxseepddrraeaetaedccaooguaupipononsntsstrahereeetsertseataabsblulirissyhhbeeoddsdattittshhreeiftilmeecetithvheeeossfceuctrhuiertitryyeisstissssudkedoafantndhdeaarriessbbuaearsseeaddnpudpohonenuanasdsepprrrleeyaaiddn0tgo8a icrceoolllalmlatettedeprrmataslaoaotunnracthinhteyceittaoorlrerigagcisionunnaradlylitbissiosuonuncdeod.drtTaichtqe.eu.is33dpiMMrteya.dddooRceassegnnafoioentttsrocctuutNrhroeretentnetrtlelfyayesrxeupxreypmcebotcortnerrdiidssekiktsarrrieellfsalltesecbdtoituvoteii3otssf'hhtlshodelddiciinnvrgeegrdsssiitiifnriniaseadksscmoeattf-rbtbkhaaeecctkkaisebesdldueessrseeecacrunuridriitetitheisseesttuoopnommdreaatrttlaeyrrliian,aglllyy impact its financial condition or liquidity. Refer to Note 9 for more details about 3M's diversified marketable securities portfolio, i`wnhsiucrhaoncleandd Sq1ui6y1inbvielsotmnenastsof.Decembe31r, 2010. Additonal purchasesofinvestments inclde additonalsurvivor bene which totaled $1.641 billion as ofDecember 31, 2010. Additional purchases ofinvestments include additional survivor benefit insurance and equity investments. eAAnssiddyiis(csSuucssmueidstiiosnnmNoNoo3tMet)sep6uraacnnhdda1s100e,,ddduarroingritthhieeqoqoufaurantreterhreaenrndedesehddeMMladarrcchhb33yt11,p, 22o00c110a0,,rttohheelCCloonmmpipantanrnyey's'tss,mSuaojmoirrtityoyomoowwnFneleeddctSSriuucmmIiinttdooummstoori33eMM, LLLiiidmm.ii(ttSeedEdD,by paying cash of 8.8 billion JapaneseYenandenering it& oote entity (Sumitomo 3M) purchased a portion of its shares held by paying cash of 5.8 billion Japanese Yen and entering into a note payablfoe SEI its noncontrolli payable to SEI of17.4 bilo Japanese Yen ng interest, Sumitomo Electri of 17.4 billion Japanese Yen (spproximtSe6ly3 c Industries, Ltd. (SEI), (approximately $63 by Pigs eihcesodgroTADOIOBSOIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ana 34/114 11775588..00003344 zane Migs heeOTdIOOIOUSEHIOAIO2T080A_HSOk hom 1d/1mmu3ir/il2lil0liin1oog8nn haaennddqu1$a18r8t88 mmeinilldllieiodonMn,arreresscppheecct3ti1hi,vvtteepl2lsyy0:,/,/1wbb0awassswsee.sddeocor.negpsoalvp/ipAoclrficachtabihvbleelpeseu/eeerdxxcgcchahharasa/dennaggtaeeo/fr6r6Saa7tue4mss0i/taa0ot0hrt0hs1toa1t0et43iM6m)5se9h.)1a.1rTT0eh0hs7ee8fc4craa5oss/amhhS1pp1Eaa-2ii0dd6oc o0f_fa1ap1pp0pa rkro.hoxtxmiimmsaat3teelOli yythS$e6633riimmnivilelllsiidtooinnng. oadaccnuttr-iiivvcniiagttisietehhss"e"iiniqnnvuettashhrteteiecncrogonenasnsnododlelifdiddiManatateaendrdccsishtntaag3tt1aeec,mmt2ieev0nni1ttt0yoofafiscncaaatsshrhheesrffullootlwwt soqs..f TtThhhueeeprorueeafrmmc2ahai0airn1nsd0ede.eorrAfoosSdfftuithmhseecitupposuumsrrecochdh3aaiMssneeNsffohintaiaernes1cn0ef,draodbbmyny rtStchhEeeIeitonhiestodetcesleappscaasoyyinafaidbbelldqeeuatisor"SSOeEEoItIhfisiescr2oc0ino1ns0nv,iesids3dteieMnrrgeedd r`nreweochcnoio-crrchddaeesddhlainsffviinencasaotnnnicncsegeidddaelnirbdaeibdlfiiilntitayynnooocnfif-nc1ga.71s.a7bhcbiitilinlvllviiieotoysnntiJJinaanpptghaanenneedfsiserfesatyynqeecunnia((rnatsgepprpporcoofxix2iim0vma1a.t0te.elAlyysS$d118i8smcimulsillsileioodnninbbaaNssoeetddeoon1n0s,appdppullrciicnaagbbltleheeeexxscechchaoannngdgeequrraaetretsseratot ftth2haa0t1it0ime, )3e)M,, which is also considered a non-cash investing and financing activity. CashFlowsfromFinancing Actives: Cash Flows from Financing Activities: ola Years ended (Millions) December 31 awe 2010 ae 2009 ue 2008 CCRhhaanenggeeipinnassohhofoyrdrtte-tbtmeeirr(mmmedatdeuenbrbittt---ite-snnegett rethaan t0edary) TPRPortroeoacpcleaeceyeadmdsssehfnfcrrtohoomamfnddgdeeebtbitnt (((mdmmeaaabtttuu.urriritteiieesss gggrrreeeaaattteeerrrttthhaaannn 999000dddaaayyysss))) PTPuRuroertcachlhiacasasseesshsoocfoahftatfrrnneegaracseesuauisrenryysdsstetobostcctkkock EDxRDicveieviisisdsdeusenantdnadxscspebpseaanoieddffttitorotessashfshauoarrreymehhssoottloloddcceekrkrsbsasedcompensation DNEDiexsitsctcterbasiubssuthttaouixonsnsebsdetntooiennfnioftonnsncafcocrooninmintrrgolstllaolciicntnkigv-iibintnatitseeeersredesstctsos maannpddeonosteahterior --n--nneett Net cash used in financing activities s @(24) (sso (556) 108108 5 WH (472) aso (854) a6666 son (1,500) 553 a9(14) $m (2,121) s 6s 31 $ (536) $ 361 G19) 980 (519) (1,080) a 1756 41 1,756 GoW tom $ (1,014) $ 1,037 an gn (17) (1,631) a 2 431 289 as a3 (1,431) (1,398) [rs 2 14 21 3 ) 3 (84) __eow $e $ (2,014) $ (1,766) "`TTwoaotstaalhldidgeehbbettraaatttDDyeeeccaeermmnbbederr2330110,,8220a0s110t0hwewarasesa5$5l5.l.55obfbililltliiooenn,g,ccyoomm1p0apbraureeidldtoa5n$5d5..77babiillilliioonnnaatatyyaeesaahrrb-euennfdfd2e2r000n09t9ehaednUd5S$6.67.g7bibviielllniotonheaadtyiyfeeiaacrru--leetnnmdda22r00k00e88t.. DDeebbtt 2ewe0n1av0sni,rhocivngomhmieperanarrttseatytdotewthahiaran-tttpehpnomodi3in02netp0tei0irnnn8ctteiaitnmsmteetha..teTTyoroteetasaualldldtreeobnbtft2awe0as0atsr9sa,22t5e5gsppydeertro3cc9eebpnnuettoirlodcffeatntontatdallmycaaeaipanpirttataeil(nn(tdtaoa2cta0la0ls8chc.aabTppuiihtftaf]lenrisseidndecetfhhfimaenneUegdde.Sisa.ssngddsibevhbotertntpp.tllhtueessredeniuqdfufieiibcytyut))litsatmtytyayerpeakiarcer-a-teellnnyddd.uc tmt2ooi0cl1colo0mom,mncemoirmnecripDceaaiaarlleldeppraawRppeeiemtrrhaass3cck0ttivevpititeatyry.bc.leIIennnSt22ea00tc11y00ue,,armrm-eaeaj,njoodwrrh2iti0teec0mmh9ss,maiiannntrdurer3pe9eadypimenprDeceneactnoetofmafytdbdyeeeembtrat2(r(m0-emea1tn0au,dtnrui2rnt0iitt0diee8ss.rggeTeprhesaeayetmnereerntttthhcaohafnann99g00peoddtianaiyyossnsh))ooiirnfntc-cdtlleueurdmdbeedrddrreeeebppltaaiayysmmttteyoenpentihtcdeoaoflf5ly.$$533d55u00e mbmbiiillillllillioiooonnnnJJiiaannppaDaanneeecassleeeqrYYReuednenemiiibnnatssrrttkaeaellelltalmatmbdeeelndnett1Spa0eai2cidu0dr1oio0tnniaecsSS,euewppittheseimmcibhbteemirrowa33tan00u,s,re22d00s11uibn00sD(e(rqfeeucefeeernrmttloobyeNNrreoo2ptt0ae1iesd0s.6, Iaaannnnddd20r110e009p,fafooyrrrmemmpeoanorytremeoedfdneteattopafaiodl.)r.teiIoIinnnaa(doddmfdiadtititeiobounntr,,reeaaslppapgptrrereodoaxxttioiemmrtahatteteeal5lnyy.89$S0110055 smd1a0yiy2ll0ssi0)o8nii,nnitcnclhuhadceerqssueair$pe$1d4a00d00yembmmitolifrellelidilnooaennttbedmmfoteeoddmi2u0aim1t0-uuteramrcemq-snuntgioosrtieteteiaorthtnheamsarttwhmmaeasatntusu9urr0beedddseaiiqynnNusNeopnrovitvlemyeammrrbieblepyearri2dr20e.0p0I0r9ne9s2sea0nnn0tdd9s,ladlrsoeeobptaiianynqccmullueuiddnreetessodrrfuedppeeaobyntpm(hmesneattsyauocorfqimftuiciceoseosimmtgmnimreoerneatocrteifcsraiAaltlhcppaaaanppe9er0rt..hat `pwIwnraai2ssm0aii0rmmi8mml,eytedhidaenitarcetelelpluyyadyrremeepp1eaa0nii0tdd.o5aafnnmdddierlrbleetoppfnaaoyyrCmmameneananttdtuoiroaifftnicceooDsmomgmlrmelearaerctrieclariaalntlh.ppaanaIppn9ee20rr0wwd0i8ait,ythhspmmpatrraiumtruoiartirctiiileeyesrsgrogesmrrpeadraetetsbeeertntptthhsraaidnmn9ea9br00itdlaadycyaqysius.ni.crelIInnudd22ue00p11o00fn,i,pvtpher-eoyrceaaecreq,duo$sifs8fri5rtodio0ommnmdiodsleeflbibAottne,arfoixtehdat FWpriatrttiemhnnaoorciteleoyuisispnusocuenleuddadieinenaoAA1fuu0gg0uu.4s5s.tt5m%22(00il00el8i8eowrnwitCtiothhaNnoaaatcdceoioauun1pp0Doofnnorlrmalaattoreerloooefafn44i...n33If7no75r52m%%0a,t0,i8ano,nndpd)r.oachtehrersed-es-yyfereoram,r, $800million, Sedrate debt primarily include a $800 million, fixed rate ot sedinOctober2008 five-year, $850 million, fixed note issued in October 2008 with a coupon rate of 4.5% (refer to Note 10 for more information). pRRuereppoupsrecush.arsIencsoFohfefbcacroousmamrmemyo2osn0n 1sst,otc3okMca'arrkseBmmoaaadrdeedotoofDssiuurppeppcootrrottrttshheuCtCohomrmpiapnzayndy''shsesstrtooeccpkku-brbcaahssaeesddeeoemfmplupoployteyoece$o7c.o0mmbippleleinosnnaotsifona3ppl'tlaasninssoaouantnnsddtfafnoodrifonhtgheceor cmcoomrrpopoonrraattee pSpsutourocrccpkhko,a,ssrreeeespp.dllSIaanEcciSiFnn4eggbmtrhhuieeaClrCoyoom2mp0in1pas1anh,nay3yrsM'esse,e'sxxwiBihsstoitiialnnreggdrironeefpp2uDu0rr0iccr9hhepacaustseroecrppshrraaoousggterrhsaaowmmrei..zTrTehedhmiistishaneauiurmttehapholuorricrzhatiathizseoenaChotohafamsiuspopnnaonotnoypp$rhr7e-.ed0e-sbnteaiolbsliltobisrnahoebokdeflr3eeipnnMusddrd'hcsdaheatoateduse.te.sItnanon2f2d00rin11e0gs0,s,cuthorhemyeCsmCotooommcnpkpa.annIyny 1Sp22e0u0c00ru8c8r,hi,attthsiheeesdC"Co$io8mnm5pP4paaarmntnyiylIplpuio,urncrcmhihnaass5s.ehedadreS$1s16,.6bwbhiiilllleiooinn in shares. For mare informatio, 2009 purchases were minimal as in shares. For more information, refetor the ble led "laserPurchasesofEquity the Company had no broker purchases of treasury stock. refer to the table rifled "Issuer Purchases of Equity In Securities" in Part II, Item 5. 537 TTabileoofbfCCoolnntteeenst:s CbCaialslsihodndii(vviidd$eennddp2sseppraa0siihddat0toro)sshhiaanrrc2eh0ho0o8ll.ddeer3rssMotohatsaldpeadi1$d1.d.55ibbivillliiioondnse((i$2nn.2c1.d1001pp9ee1rr6s.shIanhrFee)ibainrnu22a0r0r11y00,3),0$111,.41.34t31h1ebbiBlillliiooonn(o(5$f2a2.D.0i04rr4epcpetedorrrssshaairrneec))rieinan2s2e0d00t0h99eaqannudda$r1r.351y9.3898 dhbdiiielvvliii5dod3enernn(ddd$c2oo.nn0o033MnpMescrcoosmhemaymmreceoao)nrnuionssfttt2ood0ccii0kkv8bib.vydy3eM44en..d88hippanesecrrpcreaeeninadttstdt.ooivt55id35hececneedncnstatsssspiphneeclreossw1hh9saa1rref6,,.oeeImqnquuFfiiivevnabaalrenulcnaeitrnntytgto2aaa0n1ta1ain,nvutnhaueeallBpddroiiiavvmriaiddrdeieonlnfyddDoioinfrfcel$cu2tdo.2eSr20s2d0iippnseetcrrrriessbhahusaaterried.o.ntsTThhethioiqssummaaratrrekkreelydd the 53rd consecutive year of dividend increases. Other cash flows from financing aetiviries primarily include distributions to ponacyomnetnrtoslflonrgcaipnitealrtee,se.xcess ws benefits fomstockbasedcompensatchiaongne,s icashoverdraft balances, ind principal noncontrolling interests, excess tax benefits from stock-based compensation, changes in cash overdraft balances, and principal payments for capital leases. OOfff-BBaallaanncceeSSkheeeettAArrrraannggeemmeennttssaannddCConotnrtraaccttuuaallOOblbilgigaattiioonnss:: AARessfoeofrfDtDoeetccheemsembcbetrie33o1r1n,,c22i00t11i00o,,dtthe"eWCaCroormampnptaianensyy Ghbuaaassnrnaoontit ucutetiisll"iizzieendd Nssoppteececiiaa1ll4fppuuorrpdpoossieeceisnttiitcieosuft tfocsfaeacsrilicetiapterioooofdffunl-cbatallwaaanncteasseheceetrtaffbiinnlaaaenncscininagngndaamrarutansngrgeaemtmyeenestn.sts.. Pigs Refer to eihciesodgroTADOIOSHIOOTASA-2060_1OkMo the section entitled "Warranties/Guarantees" in Note 14 for discussion of accrued product warranty liabilities and asa guarantees. https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 35/114 7157588..00003355 zane 1/13/2018 Migsohcivesadg Gat OTIOOIOUSEHIAIO2O08T0_AHOSk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm inITndneaamdddndiiittfiioyonneittotohggeurumaararaajnnottreeceesu,,s33tMMom,,eiirnstthohreensnuooprrpmmlaialelrccsoofuuorrssseepoeocffibbfuuiscsiinnieessssks,,, sppuecrheiosdrsiccaiullymoeesnndefteorrisiinntcjtouosraayggroreleepemrmleonepyntestrsyttdhhaatareegqquisraertithhseieCnCgooomumppoaafninyetytoose of 3pi3nrMModpepepmrrrtoonyddi.fuuycWcehtessiitloohrerertthhmeePa'nnjseoemggrlalciixgugesietnnmoccmueeomeofrfse3xSoMMprossppuueeprrrpesslouoiennnrndeseelflr,,oroohrrsepscceellacaiiiimfnmidcssermaailnlsllikeefsggi,iicnsnagugtcitthhohnaaattsp33rcoMMlvaiippmsrriosooddnfusuoccrcttaissnnijinnunofrftryriibnoneggreeepstrhthoiiiprrmddea.rt-ptpeyadar,rdttyayhpmepasaaengteetinsatnsriodsorieronmotgthnhoeieurrtfniointftcelthlaeleaetcrcuuitsuaneoalonlotf expected property. expected o haa mavtereial impact on the While 3M's maximum exposure to have a material impact on the Company's under these Company's consolidateresus ofpersorofinnancsial condition. indemnification provisions cannot be estimated, these indemnifications consolidated results of operations or financial condition. are not A summaryoftheCompany'significantcontractual obligations sofDecembe31r,2010, follows: A summary of the Company's significant contractual obligations as of December 31, 2010, follows: Contractual Obligations Contractual Obligations pL(oMrnillgioynesr)m deb, meadingcaren portion InL(toNe(nroNegtos-ttteeeo1rnm100)o)dnebst,tiencmldudeibntg current portion COIOpnaepteperrrueatsititnneoggansllleeeoasan(ssegeNss-otte((NrNemoot1teed4)e11b44t)) `UCUaannpcctoioetnnadrldiiltetiiaoosnneaasllp(puNurorccthehaas1se4e)obolbiliggaattiioonnsssanndd "TTooottaatlhceocrnotnrtraaccttuuaallccaasshhoobblliiggaattiioonnss ma an Total 2011 S$ s5w,3ao68ss L1,a1E8m5SS$ 1,909 207 wnm we[a 442 139 111 17 123 wo 1,238 890 5008 268 5 $ 9,068 $ 2,438 $ wn mn wu es 2012 Payments due by year 2013 2014 2015 2s 2s LABS 752 $ 922 $ 1,413 $ -- am ss uo 6 181 156 119 64 a 2 104 69 41 25 1s is fa 4 18 18 17 4 im a 2 152 89 44 22 Taw 3 iM ed 51s 1,207 $ 1,254 $ 1,634 $ 115 wsAfter 2015 os 109 $ 1,096 Lm 1,182 )64 337 a41 5am $ 2,420 LpoLorontngigo-tnteeorrfmmoddnebbgit ppearaymymmdeeennbttsssddsuuteeeiinnrs22u00l11t1oiifnncplucutdlpero$$v11i66s00iommnsilaliisosnoilofsftffellloodaawttiioinntgghrtnrtaeetesnnoodeteseb.st. TiTnhhsetfrflluoomaaettniintngsg,rrAaadtdeeitnniooottnesaslaalrrye, ccplaalyssmaiefsinetsdsaiadssfcecuiiurnreere2ndn0tt12 portion of long-term debt as the result of put provisions associated with these debt aInrceltshuepu$ud2tp2ler6ovtmiisoilolnfosn. caying mount fConvertible Note, and payments due include the $226 million carrying amount of Convertible Notes, and payments due 2013 include $7 miolf flloatoing nate instruments. Additionally, payments due in in 2013 include $73 million of floating rate nots, 2012 notes, aas a result of put provisions. oUUnnncctoohnendidCtiotiimoopnnaaanllypp.uurrIccnhhcaalssueedeoodbblliiinggaattthiioounnnsscaarornedddietefofiinnnaeelddpaaussraacnhaaasggeorrebeelmiegmeanettnitootonsppcuuarrtccehhgaaossreeyggaooboooddvsseoorasseeerrcvveiirccteeissntohhbtaltigiisaeteninfofonorsrccreeeaalbbaltleeeadanfnoddlaelegkagelalloylrybpbiainnyddiinngg ctocoonenntttmhrraeaiccntCtssoe,,xmcccaapeppsaiinttayoall.fccInoooncmmlmumyidetietmadmernieantnnsttdsh,,nesoseuerrnrvmvciaioccleneodanaiggtgiroroeieneneamgml eeppnnuuttrrscchaahannasddseeuuotloiblbeilltisigiega,sat.itoTiTnohhnseesswcseeaitteseshgitotimmreyaramtatsebeosofviinnecscallusrueddeetcbhebaorontttahhoinnuueonncbcyoeloinangrdd.aitititMioioaonnnnsaaylrloepplfauutrreeccdhhsaateosseetcaoookbbmellmiiogigraatttpmiiaoeoynnnsstswwiitthh r"etrTleehralematCteesoti0monptteaaaxkknceeeyososerpxoppafaeyyoccntceosottynoretrcraaetrcestasi,n,ivdinennwwochorhimnisccaihhldeo33rnMMagtoiggioununagar(rppaarnunotriedcceuhscsaptspaseayayommbesleinegntratitttiooeosnee)snnfsswouurirrtethehaatevevsaraemliullnascbbooiinlftidtlyyeistoosiffotphnpraarolonddupoucunctretscsyhooeararssres.eerMorvvbilaiccinegesyasttotiahfotanthst.earsreCeeosncsotoorllmaddctmttoouitaccmluusesctntaooptmsmieterarlss.. csTcohopmememCmoiintmmtdipmeninae2ntsnn0yat1ageer1sxeapicnenlcdctulsbudedtoeyedodrenicdne.ittTvhhheeepepcrporeeunccrseecidddhieiannrsaggettitaoaobbnblllei(e,gp,barbtouiudotunhtcahstemsseooeurccnsootemmrsvmmdiicotietmmsoe)etnfntortsresptrrhreeeeppssrreeeensstueentnnchttoeaendssnmimtaiealollnlaappnlaiprctuoirorfcpfhtttahhesedeCpCuooorbmcmlpihgapaanastnyieoy'sn'ssisne.etxCxhppoeeenfccutttrteeaudcdrtecu,paapilbiacutaatllpital rrseepppenrrneeedessideenenngtdt,ioonnwn2ilyyt0h1tth1hnoooassneeudnfictbeeoemnnydssoitnfoiodror.nwwTahlhhieicccophhmuttmrhhcieehtamCCseooenmmtop.pbaalFningyoyatiiiissoccnooanefmtsrrsoaaouccntntu,taashlldlysyoeoonbabollmitigograaeuttpneerddte..ssTeTwhnhiteletlhmmoeaajtejoonrprtiiirtrtoeyyovaoifnfdt33icMMi'ep'ssaltpbperrdlooepdduuuicrctctnshsdaaasnineddsscsiaeonetfrtvvhtoihecirefscuCataousrrmreep,ppaubunrruycct'hhsaasseedd expected fre as needed, with expected future cash ufos on no unconditional cash outflows on astand-alonebasis. commitment. For this a stand-alone basis. reason, these amounts will not provide a reliable indicator of the Company's tOthOhethecerruoonbbltliiggpaaottriiootnnisso,,noinnfcctlahuedeelddaiiinnltthhyeepfproerecnceeeddirinntggatbanbltleeawwpiiottshhiiitnniotthnhese cucaanppdtetiiroonnASeenCnttit7el4ed0d.""TUUhnneccoConondmidptitaiioonnnyaallpipuuorrccthhaaasbseeeoofbolbriegaiastiogonnasabalantyndedsoototithnhmeearrst,""eiitnnhccelluuddee pttthiimemoiicnnuggrrorooefffnttttthhhpeeionlarotoneinoggtnn-texoerrfmmtahbeppiallyiamaboielfnityty$so3foor5rmtr2tuhhneieacalemmlrotonoauiunnnittttebabxxyycplwwouhshdiiietcidcohfnthosheemuntblidhiaeeblriiplAitrtyeyScCwweidi7lill4n0iign. cTanrebhalecseeC.oroRoemrdfedepecearcrnatreoyeaNasisssoeentooovevteeafrrbtoltieimmfteoue;r;rtttehhhaeeesrrrodeenfefaoocbrreli,y, .ttehseetlilmoonastge-ttteehremm portion of the net tax liability of $352 million is excluded from the preceding table. Refer to Note 8 for further details. 3388 `TTiabblleeooffCCoomnteensts: AaAnssddCdiosicmupssasecndyiuicnnoNsNnoobstteti11o1,,nttshheetCoCoommpUpa.anSny.ydadonodseisnnototetnhhtaaivvoeenaaalrrpeeeqqnuusiiirreeoddnmpmilinanniismmuaummpcpexnepsneisiocontndctcoonotnbrteriibbluautrtiigooennlyoodbbillsiigcgaratetiiiooonnnfaforoyrriiitns U20.1SUS.1.appnlaldnfsuiaitnnu2nr2001sy111eas; hereore,amounts elated 0 tess plansar no included in the preceding and Company contributions to its U.S. and international pension plans are therefore, amounts related to these plans are not included in the preceding table. expected table. to be largely discretionary in 2011 and future years; FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS "inTTthheereCeCsotommrpapatannsyyeketsnetaernrsdicinnottmoomcceoonnndttirrtaacycttpuuraalilcddeerrriiisvvkaastt.iivvAeesfaimrnraaangncegieamlmesnentktssmiainnttahhegeeoomrreddininntaacrroyycmcooumurisrseteo,offbcbuusosiinmneespsstootoofmsmasenaennaiaodggreemffaoonrreeaiigggennmcecuunrrter,enncpcryyoevxeipxdeopssousruere,, o`ionvvteeehrrrseissgtiihrgtafthfaceootrnrrirdistiskspkksrmoiamvniaddanvecasoggmeenumimdeseoanldtiaiatn,nygneddsprfddieeocerreriidvvrameiatsctikivvvseea.eatAcaitcnvfitiivnviiaintttnsieectssir.a.uTlmThrehiinsistskclcmoiozammanmmtaiigitotetncme.seedTndhteeitcesorctmmomienmietsmtrettiehhm,eeecCsCoiomsommonppoapeesnaseyntd'asybos'slfifnssiahenennascinopicrriaamollcrareiindssakukgrppeeosomflleicirnitce,osipnsatrenonrdsvdolidaesnd Voabljueacttiivone,s,sakndapnroavliyd,escguoideulinnestfcorreedderirtivappaptiarvoevrailn,tstrauynmdeonntguoitinligzmaotinoint.oTrhiinsgcaonmdmreitptoeretianlgs.o establishes procedures for control and valuation, risk analysis, counterparty credit approval, and ongoing monitoring and reporting. Pips eihciesodgrGo ADOIOSHIOOTASA-2060_1OkMo sana https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 36/114 11775588..00003366 zane 1/13/2018 Migsohcivesadg Got OTIOOIOUSEHIAIO2O08T0_AHOSk Hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm "PTThuheecCuCosomtmpipaoannnoyynseencntateserhrssfliinnottwoosffdooerreneioiggmnnineeaxxtccehhdaanniggeeoffroocrriwwgaanrrddccucoronetnrntracacectstssa,,noodpptctiieoornntssaaiannndd ssrwwcaaoppsmsptooanhheeyddTggeneaaaeggaiaininngssttahthneesaeecftfefocntosfoffTeeehxxeccChchaoannmtggpeearrnaattyee mansges isfinnlwuttaercpretsues.satttUirronaantdteserroisnstkkhcssaeuussshsiiannflggomwamsmaidixxesnooof,fmffLiinxtxaheeetddeaCdannodidnmfpfflloaoornaaettyiiignnangggcrtuartreereeddne0ebcbix.etc.sThTaoaonndhhgeeeclle,pprmtmaaiansnpgiaencgetieefbribcoeoordrmrrnoopewwarininnaygglfcmc,oosatshnstesc,,idnthhigeeftCfrCraoeonmnmspcapecaatnibnoeyyntmsmw.aeayTeynheeenfniCetxeroerdmainnpnttaodnyinnlrmotecsarisennstagtgrreaeste in{isnttwhtreareropseussgt.htaUamnmneodguooenutrnittathssteeccsdaeallsccauururpllaaalnttyegededcbmbyyeronretesfn,fetreherrenrceCeeateontmocpacpraeanontsaayeggtrari,egeoeerneddae--gusurppteoooennemxnneoconthttiiasoonnnagaanleld,pparrftiionnsrccpwiiepapcaraildlfiaaepmhdmyooisnuuitncneattr.lvTTachlohsnee,tCrtCaohceomtmsdp.ipafafnenyryemnmacnaenabagegetewssceceoonmmfimxeeodddiyatyndpprrfiilccoeeatrriiinssgkkss through negotiated supply contracts, price protection agreements and forward physical contracts. AFAisMMkooonfnttleeoCCsaarorrolobsesiniemmfuiultalatitniiooanneetecrchhraniiqqcuueewawsasmuuossfiedd at0nonstecgtslttthhieensCCtoroummmpepanantnsy,y''sdseeerxxipvpoaotssiuuvrreees ttnoocdchhauannngdgerelsyiiinnncgcuurrpreeonnsccuyyraeannddoiiunnstteaerrneedsstirrnaagtteeosstaaDnnedcaaesmssbesessrtth3he1e, 2r21i008s11kc00.uo.TmfThelhoneescmsmioondor debetlelenr((etebfhsiiittnrdidrnp-apaatrafsttretyryre-lbbtaaaaxntnkekeaddraantttiaahnsrsgeeesto))couuufsrsferidndeananc5ic95ei5asplpeiernnrcscdeternunitmtcvoceeonncfnotisfmid,dmedoenendcriceivetailteevivsve,eellsbouoatvvneeddrrouans11d2n2eor-mmloypoinunntrgthpheotxriipmtmoeeshurhoerorepirsrizzeooosnune.t.nsTttTahwhnehedmaimnotgosddcaeetullDuulessyceeewddmisalnbnalealbrlyye3zz.1ee,dd `ee1wx8xoppuceelurdrrierioennetccneitdcebsebe,ydylintthtlheeeryeCCsaotirmrmmappptaaeacnsntyyr,et. lhTTaethheeiidslmtmsoao.tddhereFeloeddroceoueicsgrrnnoenoetcxt iciienhnsca,clnulagdnuededrccfaievterertraicsiaknomohheefmddgogoedesitttrrioebaasnne,ssnbaaeccuftttiiiodontonse,,nsbbcenecorcataeupussuseerspnttdohhreet2CCt0oo1om0rm,peppparraneinsmyyeabnrbeitellwliyiedehvvuaeetesstact0ehtueiiairlnlicycnlrcwueluisalsilsioboeinenns ceweuxxorppueoonslsdtuulrnryeeosvst,,emwwrhayhitlciecohrhiwaiailsolynodeinmeropoefafcpttthrhteohjekkeeeryyecstddu1rerliitdvsv.eeerrFssomiirnneaittghhnleeoevvwxaa,blcluuhaaaasttneiiogodnenormmnaoftodeoderreliwl.s.akIIrnnodttfeerrrltoeesssstst.rroaTtrtehebeevvnofeoloaflitiltiloiitnwtyicnrddegeeacbcsrreleedaaessineesdd2iu0inn1m022,00mp11r00iambbteeracchraaiilpuuyosszsdeesueifienbetltseoesreitansdtcvrreaertaeesssseesaaarrineend positive impactso currently very low positive impacts to srt caings relatefod hese exporures. and are projected to remain low, based on forward after-tax earnings related to these exposures. rates. The following table summarizes the possible adverse and fr Advneimpacton Adverse impact on pos en or after-tax earnings Poste mpaton Positive impact on os enFi after-tax earnings FoFIrnootreierieggsntn reeaxxtccehhsaannggeeraraiteess 5 2010 (w1w0S)) 5 S 2009 W(a8D1n)) $ 2010 1E2.0 aS 2009 591s CInotmermeosdt irattyesats a(s4) an(11) n4 54 Commodity rates (15) (20) 12 13 "cTTohhseetggolrloosbbaallaeexxppovoosfsuursirepespsrnrloeialamtgtaeetddes1tlo0yppuSur6rcc2hhmaassieeddlccooopmmeppraoynneeernn.tssTnahnddmgmlaotabetareliriaaellnsearargreeysseuuxccphhohstuharatet a |1sppueecrrhcceaennttt pr8rii1ce0ecpechhraacnneggneetwpworoiuculelddchreeassnuglletiwinnoualppdrreer--etaasxux.lt tcinhoaesaptpuporrrreces-hta-aavxusinexcgdocscsotoomoftrpraopssnapevronianxtgissmvnooaftfdeaialppympapr$tnro6oex2xriiigmmmeaiatltlseeixlolyyn Sp$p33e88roymmeinaillsrdll.iiooTrnnuhsppeueesrgrreloyydebeeaatarrol..ehDDneeeedrrrgigievvayaapttepiixvvrpeeooxiisniusmnrtearustimsetlseyunrct1sha0rathrpsmeearutuecsaseeenn1ddt0totoopfehetrhecdidesggnenet peaarppripcpreroocxxxhiipammonaagtsteeellwyyo|1upplederrrcceeesnnuttltooff the purchased components and materials exposure and are used to hedge approximately 10 percent of this energy exposure. 339 `TabTleoofifCCoolmnetreenst:s Hem 7A. QuantitativeandQualitativeDisclosuresAboutMarketRisk. Item 7A. Ouantitative and Oualitative Disclosures About Market Risk. ImInanrttkhheee ccroontntteeexxattnoodffpeIitecmms,77AAs,,cmmahraakrskeefttlurrciistskukarrteeiffoeenrrsss oitotnhtrheeerrisisstkkafoeofslsoasnsadarfrsiosirinengiggfnrroocmmuraaeddnvvceeyrrsseexccchhhaaannngggeeess tiinnesffmi.nTaahnncceiiCaalloaamnnpddaddeneryriidvviaasttciivvueessinensssrtriuusmmkeenntt ammmnaaadnnrFakaigegnteaernmmacetieenanstltiainnnIdovvsaparrrriiiuocomeuuesssn,ppssll,uaacccaheedssaistthnfrlhotuNhucgtrouhaototiuoteunthshsigioissndhdCoiooncnctouesumromeuelsnietdtntra,ta,ttieienndscclFaluiunndddaiinnfnocggirdaediliisgscScnutusacstsuseiirormoenennnssctiiysnn(eIeLxteocmmhna:77nTgcceeoornnrcnacteeeDmrsnei.ibnnTtgghFaeiFnniCdanonaScmnihcpairaallntyCCoTodnneidsdicitButioisoorsnnersoaawrnniiddsnkgLLsii,qquuidiidty,, gaDDoneevrdreiiFvvriaanntteiaidvnvecbesi,y,aFlFwaaIrniirrsttVVeraunalpmluuoeeelnMMitesc,eaeasa,snuuardreneimdnmeatnehntvestasN,l,uoaae-tnneaddst-tttrhhoieesCkDDoeaenvrsianovtlaiitdaivvaeetflesssdpaayFrnnoiddnvsHHaiendedscedgidgaiflinonSgrgttaAAhtceectmstiievveinidttetiesresis(avLaacotccicnovogueu-snTn.tetiTirnnmhggpDpCooleolibimcctypya)a)n..ndAAylSllldhoddoeeerrstr-iiTvnvaeattrtiimvhveaeBvaaoeccrttlriioevvviwitteyiyrnaisgsgse,d cdgdeoeornrvivievverarantttiieivvdbeelbeppyoonswstiitotriisioothtnnaessrn..epHHoooolwiwfceie3evvsMee,rra,cnttohhdmeeamCCveooanmmlupspeata-onanctyyk-rdrdisooekeefsahnehtaaarovlvyeeNsciocsooeinnsit1pinnrog0gvennidtlthleyyidsccofdoononvrcevutrhemtreetisnibebtll)dee.dedreievbbatttihhvaeatst,.iifTfchocenodnCidotitmiioopnnassnffyoordrcocoeonsnvnveoerrtsshiiooannveaarrleeevmmereeatg, eiissd: convertible into shares of 3M common stock (refer to Note 10 in this document). "40 `TabTleoofifCCoolmnetreenst:s IHteemm 88..FFiinnaanncciiaal SSttaatteemmeennttssaannddSSuupppplleemmeennttaarryyDDataata.. IInnddeexxttoo FFiinnaanncciiaall SSttaatteemmeennttss iE efits Management's Responsibili_ty for Financial Reporting Management's Reperton Items Control Ov Fisncil Reprting Management's Report on Internal Control Over Financial Reporting Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.see.govlAreh ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 7175588..00003377 Begs Beginning flail page z42 a42 ama 37/114 zane Migs heeOdTIOOIOSEHIOAOI 2T08A0_HSOk Hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm `Bepartofndependen RegiePublicAcssuningFi a Report of Independent Registered Public Accounting Firm 43 Consolidated Statement of Income for the years ended December 31, 2010, 2009 and 2008 "44 `CCoonnssoolliiddaatteedd BBaallaanncceeSShheeeettaatDDeescsemmbbeerr1311,,220011001a0nd422000099 s45 2000 0d2008 Consolidated Statement 2009 and 2008 of Changes in Equity and Comprehensive Income for the years ended December 31, 2010, "46 Consolidated Statement of Cash Flows for the years ended December 31. 2010.2009 and 2008 @48 Notesto Consolidatedinci Semen Notes to Consolidated Financial Statements 249 NNoNotottoee2.1.SAiScgiqgnuinifisfiiicctaainnottnAsAcaccncodouunDntiitvinneggsPtoPltoirlcisciiseess a459 ``NNNNoooottttoeeo323... GRAGeocosqoonuddciwsltiitrlailoinannnsdgdaAIIncnndtttiaDaonningvsgiebbslneetiAdtAusErsxessiseettsAsctivites 56 a260 `Note5 Note 4. Note 5. Supplemental Restructuring Supplemental BalanceSheet information Actions and Exit Activities Balance Sheet Information 62 &&64 N`NNNooootttoeeo767..lSuSSnpuuepppolppmelleememmeTneetonnattaalsllCECaqasushhitFyFllaoonwwd Information Comprehensive Information Income Information 65 a&67 N`NNoNoootttteeee198,0..,MMILnuocaknorekgmt-eaetTabeTblrlaemexSeSDseeecbuctriautine:dsShort Term Borowings an6781n N`oNNNotoottteeee11112110...PDPLeeneorsnnais~iot-onTinevaarenmnsddDPPoeobsstttraeentiidrseSmmheeonnrttt-BBTeenernemfefiBittoPPrllraaonnwssings TMr7736y ``NNNNooootttteoee11114323...FCDFaoaeimirrrmiVvViaataltmliuuveeeensMMtesesasssneudrmeCemonnettnistsngencis 1999m155 N`oNNNotoottteeee11115645..ESCEmtmopomlpsolmoksyiaetemseeSeeSandavtCsvioiannmnggpdssesnCansnodadnSttSitintooogcncekkncQOiuewsnneernsihippPPllaannss 100 uwo110 ``NNNNooootttteoee1I117f67...BGBSuetusoosigcinrnkeae-sBpssshaSisScecegdAgmrmCeanoeimnsstpsensation 11.~.1 1u4s11~4 Note19.QuarryData(Unaudicd) Note 18. Geo~ranhic Areas Note 19. Ouarterly Data (Unaudited) us11~6 11~6 a41 TTableiooffCCloomneterenst:s MMaannaaggeemmenent't'ss RReesspopnosnibsiliitbyfloforyr FFiinnanacniacl RReeppaorrttiinngg h`MaMvaaennabaggeeemnmepenrntetpirsaerreessdppioonnnassicbicleboflforoerrdttahheewniiicntnehtteeggarrciittcyyoauannntddinoogbbjjpeercctitinivcviiitptylyeoosfgftethhneeerffaiilnnlaaynnscciiaall eiinnffoorrimemnaatttiihooepUnnninintcceelduddeSedtddeiinnsttohiisfsAprmeoeprrotirt.c.aTT,hhWeeheffmirneaanncncieiaacllessssttaaatrteyem,meehnnettss Financial siaretflectmestinmatetsbassed on anagement's have been prepared in accordance with accounting principles financial statements reflect estimates based on management's odgment. generally accepted judgment. in the United States of America. Where necessary, the "TMMhiasnaasgynesmtegemnatenhhadassmeisestscetaaabbblnlilissihhteseddhsdannsddccmmosauiinnnttatiininnspsraosscyyessdttueermemsoofafnnitndetrerlrnnsaltleaacccooncutnotoiunganaarntndddietosnthihggernr eccootnnottrpoorllosfvfoiodrtthhreeeaCCsooonmmapbpalanenyysauanrnadnitctssesstuuhbbasstisiddisaireicess.s.rc. spTseaahrffiesosgogsnuuynaaesnrtldde,eemadd,n,adttnhthdahattaittttshpheeuebbsbtlooaiobosklkhisssehadaenndfddianrrcaeenccccoooiruraddnlsstispnprgraoopmppreeoerrclyyenrdrueearffreleeispctratonlapdllelrrrtelralyaanptsernaedcpsctaioaronenctsr,otttalhhsnaiatdatrpopfeoonldllieyscsiii,ergssneeaasdnneddteoppdprro.rooccTevhudideurereCerssoeamaasrrpeoeaniinammbypplsellesamesymsesuneertnaemontdbcefbeydynthqqauuatarlaliisffsiieeetdds are Cpoenrtsroonlneisl,sapnodrttheatdpbuybwliisdheeldycfinoancmialmstaatemnewnirtistcaernepapolroitcpieedrsl,y ipnrcelpuadriendg abnusdifnaeisrlycopnredsuecnttepdol.iTcihees,Cwohmipcahnrye'sdseyssitgemnedotfoinrteegrnuaileal aecenommdpnpltorloooyyloeeieselsssuttsoopypmmsotaaerimtien.tdtaabinny igh tical standards in the conodfCoumcpatny widely communicated written policies, including high ethical standards in the conduct of Company aff. Internalsuitors business conduct policie affairs. Internal auditors continually s, which are continually view he accounting designed to require all review the accounting and control system. 33MM CCoommppaannyy MMaannaaggeemmenetn't'ss RReeppoorrtt oonn IInntteerrnnaall CCoonnrtroollOOvveerrFFaiannacnlcaiallRReeppoorrttiinngg MaMMnaaanngaaeggeemmmeenenntttcisosnrrdeeusspcoptnoesdniusbnliebfaflosoercrsecssmtatebnltiasohfbintghlaeanCnidodmmmspaaaiinhnynta'iiisnniningngtageamnaaalddeceqoqunutaarttoeelssayyvssettreemmfonofcf iiinntlteerrmneaaplloccrootnintntrrgobollaoosvveeedrrofnmnatannceicairlalarrmeepcpoourrtrtiiknnggc..ablished bythe Comite ofSponsoring Organizations oftheTreadway Commissioin eralConrol -- InegraedFramework. Based on Management conducted an assessment ofthe Company's internal control over financial reporting based on the framework established by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-- Integrated Framework. Based on Pigs eihcesodgroTADOIOSOIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm sana 38/114 11775588..00003388 zane Migsohcivesadg Gat OTIOOIOUSEHIAIO.2O06T0_AHOSk hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm he asesmens, managementconcludedta, a ofDecember 31,2010,thCompany's intemal contravene reportiings the assessment, management concluded that, as of December 31, 2010, the Company's internal control over fmancial reporting is effective effective. eMMxacanlnauagdgeeedmmeCenontgt'e'snsatsssneccss,smAsernmztoaeofnfntthhtnec.cefaffenlcdticAvtetnevesesoHnofoflsttdhhsieenCCgosoSmm.pApa.an,nyy'w'hssiifcnhetewmraenalel ccaoonlnttarrcoolqluaoivvreeerdbffiyinntaahnncceiiaaCllorrmeepppooarrnttiiynngginaatshooefffDDoueercctehemqmbebur3e3a1r1,o,r2f2002t11000e10ri papeugxurgcrccrlhuheadgaseaseedtbebCuusopsgirineenensestessnIcnctcooe.mdm,IAbbsiirnsinzaattainhotatnniIs1n.oTc0Tn.ooaspltnea.lrdlcaaAessntsetteteotnssftaiacnnHoddontlfodsatioanllglnnsieeSttd.saAttaoe.let,esadswlrrhaeeicccsoohrredwdeeeaddrnbebdyyaellttshhsaeectqCChuoaoinmmrep|pdaapbnnyyyetrrheeelraoCttefoedcmctooopneatstnhhoeylensisiedenaacatttqhceuqediusefioisttuitiriaotohlnnessq,s,ouiiafnrthhtehreeeof2010 in `aaCCgoogsmmrpepcaganansytye,,,srrroeeemsfspppreeeetccsteteniimnvvetateelldyy,,cloeaansstsoroftofhlaaanonnddv1fef0oopfrtietnrhhaceneycyneieatalaorrfeeecnpnododnreestddoiDnlDiegdecdaceuteermmdibntbegoertrtah3l3e11a,,s2rs2se00tt1s1y00a,e.nCrCdooolmfempasaspnnatahnicaieqenussia1sarirpeeteairalocllnleoonwwwtheeoiddlftectoooienexsnxcoclltliuudddageeteraadctcqhnuqueeuiattsiscisitqaitiiluoeoinnsnrssfoegdrffrtoohcmmeomttphhaeenirry ander guidelines established by he assessment of internal control over under guidelines established by the Securities ndExchangeCommission, financial reporting during the first year Securities and Exchange Commission. of an acquisition while integrating the acquired company "aTTnhheeiCnCodmoepmpeapnndayenn'yt'ssreiignnittesertmneaarlledccoopnnutbtrrlooillcooavvceecrrouff'inmntaainnnccgiiaai ll rreeppaoosr, rtsittnaigtaneadgsooffDtDeheccfeemempboberrte3w31rh1,,i22c00h1100i nhhaaussdbbeeeeednn aesuurddinitte,eddwbbhyyicPPhrrieicxcepowrweaasttesrrehbsoouuassneeCCnouoaaoplpeierrfssiLeLLdLPP,, opinionon he fceivenessof the Company's niernalcontrol over nancial eportingasofDecember 31,2010. an independent registered public accounting firm, as stated in their report which is included herein, which expresses opinion on the effectiveness of the Company's internal control over financial reporting as of December 31,2010. an unqualified 3M Company 3M Company 42 `TabTleoofifCCoolmnetreenst:s Reportof Independent Registered PublicAccountingFirm Report of Independent Registered Public Accounting lrirm To the Stockholdaenrds BoardofDiecoofr3sM Company To the Stockholders and Board of Directors of 3M Company nfIoniurnooanupcriiaonlpiipnooisonin,t,iotthnhoeefccoo3nnMssoColloiiddmaaptteeaddnfnyianaannnccdsialslsssuttabatsteiemdmieeannrttisselsiiss(teehdde ii"nnCttoheemapacacccnooymm"ppaaatnnDyyenicngegmiibnneddeerxx3pp1,rrees2see0nn1tt0ffaairnrdlyyD,eiicnnealmlllbmmearatet3er1ri,iaa2ll0rr0ee9ssp,aepcnetdcs,ttthshhee,e ess aofociffncttoahhuneenicitriraioonlpgppepeorrasaitrttiiiooonnnissoaafnnn3ddgMcettnhheCeeirioiarlmccplaapyssaahlhncfyfclleeoaopwnwtdsssefdifotoisrrnseteuahabcceshhidUooinfafitrtthiheeeesdtt(Shhthrreeeeei"yyCoeeofaaamrArssmpeiieannnrttyihhs"cee)p.paeetrAriDilooesddcieeenmnddobeeueddrr3DDp1iee,nc2cie0ome1nmb,0ebahr3ene31dr1,C,Do22e0m0c11pe00amniibnnyeccromon3anfi1fno,otr2ramm0ii0nit9etyyd,,awwniiitdtnhhathle results mCmacoaacnttoeiurroinalatliInrrnegesstpppeeregcicnrttscas,i,tpeeelffdeffFseerccgtateiimvnveeeewrniaonlertleykarnalicacl eccspoontnettbdrerooyillntdoohtvheveeerCrUfinnoniaatnencdmicaiSalmtlaorrteefipsoSeoprttfoiArpnsgmtosroaeisoreniocfgrafD.DOetrAecgcealeisnmmoibzbienanertroig3o3un11rs,,o22op0fin1t0i0hoe,nTb1b,arastehs0aeeddC,owoonanmyccprCriaotinemeyrmiiamiecsasssiitniaatobballniinis(sehChdeeO,ddSiinOinn)a.IIlnnl tteTerrhnneaall aCCCnooodmmnfptorpaoranlnyf-y'sI'ssnstmmseaeganrsnaaaagtgmeeendmmtFeenrfnattmeiisewrreefosscrppktooininssvssiieubbnellecedsffbsooyrrotftthhheeeessCreeoaffminnlamacnciictotaineatlelrossotlfaavtSeeptmoreannfsti,osnr,ainnffcoogirraOmmlarargieinanptnotaairziitnanitiiningnog,gnisenfoefceflccutthdiieevvdeTiinirnettaheedmerwnaaslalcycccoCoonntmortpmroaolmnloyiovsivseneirgorfnfMii(annCananOancgciSieaaOlmle)rr.neetppT'oohrsrettiinngg CaRRneoedppmoofprorattronointynssItansnetstemeresannsa]malleCCnocontontnottrrfrootollhleOOovevvfeeefrreFcFntiiiannvanaencnnciceiaisaalsllroRReefeppioponrorttteriitrinnnnggagb.l.acOsoOeunudrtorrorrneleossouppvoroennrsnsifiembbgiiallrnittacyyieaisdsl rtoaoeupdeeoixxtrsppt.irrneeWgss,seiooncppciilnnouiidoonenndssdioonnuntohthchueeertasaecucedffoiiinmdtnasnpnicacinniasaylliensscgtatotMearmatdneeanagtmnsweeimcnatnneehddntottos'hnsne tthee aaCsutoandnimdtdspaaarodnrsyoo'obsftfitatnihhtneerrPPneuuaablbsllociinoccanCCbtlroooemmlspoupavranenaryynAfAcicncecaoscnuocnouitanilttnirgnewgphoOOervttveihnerergsrsitibgghahhestteiBdBoonoaanrrcddolu((rUUnsinnitittteaeegddtSreaSttmateaetdteenias)tru)..sdiTTtrshh.oooWssoefessmcttaaoatnnneddrdaaiurracddltssemdrrieesoqqsuuutriiarraetuettdmhheiaatntsttwwienneatppcllcwaaonhnraedatnanhnddecprpeeecrwrffcioothrrtmmthvttehhee ieainnxuttadeemirmtinsanaltilonccgoo,bnoottarnoinnloorvteveteaserstrorafnisaansoban,lneccleialavslisdrureerpaneoncecrtepisnagbowuowaurapstswmtmaphiaeitnitanhthteaenamirrinnotgheeuieddnfnitninnasaalnlslcntmidaaeldtseiitrasiltacellmroreeesssnepptesescctnastthrs.e.OfOrueuirernaocaufuidmdsitiaatssltesoortfifaatttlhhemeemefinnsmatssnta,acntiaceaismalslesinsstttiaanteengmmdnehwtnehtsssectiihonnecucrlltuoedidffeeneddcgtive pFpexrriianmicniinpanlicenlsgic,usposoeennlddtaaoealntnseddsotssvbiirggannsniiisffai,inccecaavnniittadeleessnrttcieimepmoaasrtutteepisspnmmogarantdidnueegbdbyteyhedmmoaambnaaosgunennmitsneananat,dnaagdunniddsnceeeldvovasaelulmuurraeatsstieinntigngattonthhhnfeeeondtfov'meivereaan,ranallcgllilaffcliiosnnntaatannrtceocilmiaalelovnssetttsari,tfeeaimmsnseaeennnscttsiippanlrrgeerssteenhpineoatratatitciiocnongon.,u. nsOOtsiucnursgrsaaiudndigitt thhtoheefeiranrisitsssekkrentstahhslaaetctdroaaimnsmatkr.taoetOlreoiurivaarlelwrawefdiaeinaktaknnsnecleissaossl reeeixxpniisocsttlrst,u,iadnaegnnddpinetecerslsfuttoiidnrnegmgdieanonngbdtesaveuiavnclaihunlaugatatiatneinngrgutpntrhdeoeecrdedsdeteusasrinieggdsnninaiagnsndwodfoeopicpneoetrenrarasnitiinandlggeecrfoeeffndeftecrncotetilicvvoseevnsneeerrssysfsmooifanfntiichnnietatelermnreaacpllucocmorostninttnatogrnol,clbaebsasas.sesWeessddeinoognn elev that our dis the assessed risk. Our believe that our audits provide a reasonable basisforouropinions. audits also included performing such other procedures provide a reasonable basis for our opinions. as we considered necessary in the circumstances. We AFAinccaooncmmipapalannryy''sseinfpteemrnaaoalnldccroohnnetttrrpoorllieopovavrneeartfifgiionnnaannocfciiaafllarrneecppooirrlttiinsngagtiiessnaaeppnrrtoosccfeeossrsseddxeetsseiigmgnaneeldd1put0orppprorsooevvsiididenrraeecaacssooornndaaabbnllceeeawaissstuuhrrangncecneeerreragelaglraydraidcningcegtpththeeedrraeecllciiaoubanibtlilitnyygooff mppfmrriiananncciicippinallelets.r.eepAAoonfrcctaooirnmmengpcpacoaannrneyddy't'ssthheiitnnp,ttreeiernmpnaeaallaraccstoinoonanrtbrooollfeoofvidvneeearrtnaffcii,innaaaalnncsccteiaiaaatlletrmreeelpepyrnottrasitninfndoggrfiienlnxccytlleuurdednefeaslslepttchuthortopshseoesppteoorslaliiniccnsiiaeeacssctcaaioonnrndddsappanrrnoocdcceeedwddiuusirtprheeosssgieththniaaoettnra)s(il)olyfppteaehrctercaeiaanpsst0teeodtsttaohhfceetcohuenting camcocomacmiponpratadennanynyac;nec(1wiei)i)optprhfrorogveevicnidodeerredarsrleeltaahyssaooatn,ncaaienbbpllrteeeeaaadsssossauuncrcraaoabunnlncecteetidntehhgtaatitpl,trrriaaanncncscsiauapcrlcatetitsooe,nlnasysnaaadnrrtedehrrfteeaccirrooleryrcddereeieddpftalaessscnatnentcedheceesexssptraseaarnnrydysiattcoutpirpoeeenrsrsommifaittntdhpprerdeeippcsaaprroaaosttiiitoioonnmnoaosfrfpfoefifmbnteahaainnecncigaianmsalslasesttydtsaaettoeeofmmtlehenyenttssiniinn Spaarcccecccvoooenrrndddtaaainnnocccneeewowwitiittthhhimsgaeuelytnhetdoreratilzelycahttiaioconcnosoeopfoftfeumdmnraaanaucnatcahgiogoeuremnimeztizeennndtgtsapacntnrqidudnidcsdiiioirptrelieceoctsnto,,onrarsssnoedo,fsftthothhraetdrcceoocimmepippasatnsnyya;p;noadafnnoeddxhep((sieiciin)o)ipdmpioptrvuoatirvneciysdi'eosrfroeeatshsasssenoeonctnssoabmbtlhlpeaasancsuyosrulaarrdaennacbceveeienrregeggmaamrraaddtdieienrngigoanllyefifnect onthe financial sstement. prevention or timely detection on the financial statements. of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect oBBfeaencyacueasveaoulofusfaiettsiiionnnhhoeefrreeennfttellciimtmivitteaanttiicooennsssf,,oiifnnutteterumnraaellpcceoornnitotrrdoosll aosvvreerrsfufibinnjaeancnctciiatall hrreeppooirrkttiintngghmtmacayoyntnorototlppsrreemvvaeeynnttboaercddoeemtteeeccittmnmidsoisscstutaaattteeemmbeeennstatss.. AAollssfo,,chppraroonjjgeeeccsttiioionnnss conditioorntsha,t he degreofcompliance withthe policiesorprocedures may detrionte. of any evaluation of effectiveness to future periods are subject to the risk that controls may become conditions, or that the degree of compliance with the policies or procedures may deteriorate. inadequate because of changes in Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm sna 39/114 7175588..00003399 zane 1/13/2018 Migsohcivesadg OGatTIOOIOUSEHIAOI11O-2200T8600A__1H1SO0kk.hhtomm AATossc.ddaeenssdccrrAiibbeeeddniinn MMHoaalnndaiagngegemsmeSne.tnA't.'ssfRRrheoetptmpaosir:rtt//wootsnwnwsIIn.nstiseeecrm.nsgaaollsvoCC/AomforncnthettrirvooeenllsmO/OteavdvegecrarornF/Fdtiiarnntoaaalnn/6cco6iiva7ael4lr0RR/fe0ep0ipo0cor1irt1tia0inn4lgg6,,5r9emmp1aao1nrn0at0aig7gn8eeg4nm5ae/esnaonttfhDhaaessceeexxmccbllueudrdee3dd1C,Coo2gg0ee1nn0ttbIeInccca,.u, sAAerriitzzhaaennytt A`wInwuecetr.reeacnancduHqAouilitdrrteeidnnbgtbisyyHSt.CtohhAloed.iCmnfgoposmamSpon.aAuny.rya fiirnnopmpuurii roctcsfhhraaassesseet nebsbasuumlssiienncneeotssnsostcrfcoioolnmtomevbreinbnraaliftiiconnoannnsatcdridoutaulrlrioiirnnvegpgoeo2rr2n0ft0ii1n1sn0ag0.n.. cWWiCaeolehgrheevapnvoteerItilannlssg,oaAeesrxxozccafllunuDddteeecddIecCCm.ooabggneeerdnn3tAt1Ixt,nc2,ce0.,1AA0rHirboizzelacadnaitutnsgIInescc.tS.hAaaenny.dd anAarrtdetewwlnhehtsoiolHlltlyoyhl-a-donoiwnw|ngnpeseeddSrs.sucAubeb.s,isfdirrdioeaimasrripioeeesuscrioovaffuettydhh,ieet ooCCffotohimmneptpeaarennnlyayaltwwechdohconoostsnreeosolttoolottivaadlleaaratssfeesidnetatnssnacannincaddliartioelaptalsoltrnetaitentetgmss.eaanllCteesosm,goiiennuntntthhtIeenascaag.gg,5grAroeerfgnigzaaatdtneet,rfIreneoprpcr.rteeasesneeydnnettAalertetessensndtthiheaaHdnnoDl11de00icnppegeemrsrbccSeeen.nrAtt3. 1, 210,and less than 1 percent, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2010. 1M/si/nPPnrreiicacpeeowwlaaittsee,rthMhooNuusseeCCooaoppeerrss LLP LLP FMeibnrnueaarpyo1li6s,, 2M01N1 February 16, 2011 e43 `TabTleoofifCCoolnmteeensts C3CoMonnsCsooollimiddpaaatteenddySSattnaadtteeSmmuebensntitdooiffarIIinneccsoommee e3M arCsoemndpeadnyDeancdeSmubbes3ird1 iaries Years ended December 31 NeOtssioes mooppemnueeny (Millions~ except per share amounts) ONOpCepeotenrssaaittlineonsgfgseelxxeppseennsseess RSCSeeesolllasliitrnnocggf,h, s,ggaeelndeneeservraeallloaapnnmddeaanddtmmianinndiissrrteralaaittivvedeecexxxpppeeennnssseecsss LoRLs"oeTsssesofaufrrrlcoohmmo,spdsaeealnvleeieonloofgfpbbemuxusepsinienntneesassensssdeessrelated expenses OpenTiontagl ionpceoramtei:ng expenses Operating income w ST e mem 2010 $ 26,662 a 13,831 sa5,479 184 1,434 Tori= 20,744 sis 5,918 $ wm n 2009 $ 23,123 1214,2,11000997 4,907 125=3 1,293 I1Ip8,aE3i-0)d94,814 5ue we 2008 $ 25,269 11S33,233117599 5,245 Lan2e 1,404 2200s,0a05i5211s3 5,218 IInnttIeenrrteeessrtteeestxxppeeexnnpsseeensaaenndd income income IIInnnTtttoeeertrreeeasssltttiieinnnxtccpeooremmenseset.eexpense (income) Total interest expense (income) 2ma01n 2a211)9 221110559 16(38) 163 in(37) 182 iho(105) 110 IIPnnrcocovomimseeiobbneefffooorreeiininncccooommmeeeaxataecxsess NPertoivniscioonmefoinrcilnucdoimnge tnaoxnecsontoling terest Net income including noncontrolling interest s51,a75s52s5 _we 1,592 $ 4,163 a41,36e8382 _saw 1,388 $ 3,244 S108 5,108 Lsss 1,588 $a $ 3,520 LLesesss::NNeettiinnccoommeeaatttiribbuutaabbleettoonnaonnccoonnttroollilinngg terest interest n78 st51 @60 Netincome tributeto3M Net income attributable to 3M s$ am4,s085 sums $ 3,193 $ se 3,460 E`sWWmeieiginghhtgteseddpeaarvvseerhraaaggreee33aMMcicobommummotonnbtsoshlh3aareMreessccoouumtsmttoasnndtsinahgan--r-ed-hboibalandsseigirccs basic s m7s13an.7 os 7700a00.5s5 s 9649992.52 Earnings per share attributable to 3M common shareholders basic $ 5.72 $ 4.56 $ 4.95 `EW Waemieigighnhtgteesddpaarvvseehrraaaggree 3a3tMMtcricoboummtmamboloenntsoshha3arMreecssocomuuttmsstoaannnddsiihnnaggr---c-hoddliildueeterdds--dled $ m7s525s.65 s 704066.727 s 7040178.292 Earnings per share attributable to 3M common shareholders -- diluted $ 5.63 $ 4.52 $ 4.89 (Cashdividendspadper 3M comeshare Cash dividends paid per 3M common share s$ 20s 2.10 $ 22.0004 5$ 22.0000 "The accompanying NotetoConsolidated Fineial Statements sr a negra paofrhtis statement, The accompanying Notes to Consolidated Financial Statements are an integral part of this statement. "44 TTablebooffCCloomneteesnt:s `Consolidated Balance Sheet Consolidated Balance Sheet Pigs eihcesodgr Go ADOIOSOIOOTASA-2060_1Ok Mo ome https:llwww.sec.govlArchivesledgarldata16674010001104659110078451a11-2060_110k.htm 40/114 11775588..00004400 zane MigsohcivesadgGatOTIOOIOSEHAII.O20O8T0_AHOSk Hom 1/13`33M A/M2t0CC1D8ooemmcpepamannbyye3raa1nndd Subsidiarieshttps://www.sec.g Subsidiaries ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm At December 31 (Asosettsromitens, (Dollars in mfllions~ cppe sthar except per share amore amount) amo2010 CuACrCussearersnetsnhttaaansssdseecttassshequivalents sams AMMCcacaarosrkhukenetattnaasbdblrlceeeacssseeehcicuveuraqirbtiutliiieevessal-en-nctecsuturorerfenantltlowances of 98 1 $109. $ 3,377 36L1io5 1,101 IAInncvvFceeionnntutioonsrrthisieeerdssegcoeoivdasble -- net of allowances of $98 and $109 3,615 146 RWFWaoirnwoirkskmhaiietnndepprgrrioooaoccldeessssassnd supplies 1,476 9i%950 TOTtoohuRtaelalrwiicnnuvmvmeeaennttnteootrrriiiaaeeslsssseatnsd supplies 3S`,91i7652s759 MOaTtrhTokeoerattacalubcrrlureeerrnnsetntaetsaasecssstseusts --rniotn-iceuest 967 S1os 12,215 IpnMIrnvovaepresekstretmmytae,ebnnpltetlssosetcaunrditeieqsi-p-mneonnt-current 2025118944606 PLPLrereosospspse::errAAttcyycc,cpupulmlmaaunnulttaalaanttndeedddeedqdqeeupupirireppecmmcieiaeatnntititoon--n net 20,253 az77m (12,974) GIPGonrootodaopnwdegiwritlbyilll,lepalasntsand equipment net -- net 7,279 oaa0 6,820 OPPInrtrteehappenaragiiiaddbspplseeeentnassssisiooenntbsbe-en-neenffeitts 1,820 127074 Tou acs Other assets 5 s1e,2m6e2 5 Total assets $ 30,156 12009 gm 3,040 a4744 3250 3,250 11,2s255s85 25685166959 T21L0,,761i932z932 10,795 510825 111299..,414440440300) (12,440) s7.0a00 7,000 13672 5,832 1,342 m11a,22777n558 27,250 LCLiuiaarbbeilinlitittiileessilies C``uASSrcrhhecoonorrtut-ntltitetasrbmiplbiabtoyiorearsrbrolowewiinnggsssannddccuurrerennttppoortrtiioonn ooff olonngg-teerrmmddeebbtt AcAAAcccccrccrouruuueeendddtsippnpaaycayryorooamlblellleaxes OAOt"cthThceoertrruaecclduucmruirnerencenottnmtliiealsbtiiialxlieteiisesess Total current liabilities LPeoLnonsngigo-ttneearmmndddpeeobbsitrctirementbenefits OtPOeetrhneslir"ioTlnboiauiablinilldiitsepiesoissltreestirement benefits Total liabilities $se11,6266s 29 1466811383 1,662 TMasm778 1,`246s58x%300 c22,o00325mm28 252 a 15% 1,899 6,089 4,897 4m 4,183 2013 2,013 1.854 1,854 5am 5 $ 14,139 097 5,097 2m 2,227 Ln 1,727 mom 13,948 Commitments Commitments andcontingencies and contingencies ((NNoottee 1144)) 3EEqMquCuioittmyypany sharcholders" equity: 3M`CCCoo`mmoShmmmaorponeanssntcsytoosucchkkat,,reppahaaorrnvlvdada--ellruius2e' 0neS$1q.00g0u1:1iptype7:e1rr1ss9hh7aa7rr,ee608 `SShhaarreess ocuutsttantdainng---d-i220n001g90::771101,,98797,,161098 RAAedtddSadiihtitnaiirooeenndsaaclolaupprtaasiiitddna--ngiidnninccagappi-itt-aall2009:710,599,119 TARTrereceatcaassiuunurermyydussetltaooraccnokkittnhegesd comprebensive income (loss) N oncAocn"TcTtuoorttmaaollul33liaMMntegdCCinoootmtmheprepaeransnctyyomsshhpaarrrecehhheoonllsddievenress''i equity ncome equity (lo ss) "Toulequity Noncontrolling interest Total equity s $ 99 s$ 343,468 25995 25,995 0260) (10,266) ase) (3,543) 1568 15,663 35354 Fm -- $ 16,017 $ 9 2333,711555333 0a3i9s)m 23,753 (10,397) (3,754) 12756%8 12,764 538 13,302 TToottaall lliabiilitiles aainnddeeeqquuistityy sss sas $ 30,156 $ 27,250 "The accompanying NotestoConsolidated Finaial Statements sr a negra paof tis statement. The accompanying Notes to Consolidated Financial Statements are an integral part of this statement. Pigs eihcesodgr Go ADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ame 41/114 7157588..00004411 -- 1/13/2018 oe OH https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm r45 ators Table of Contents Coton Smet Cong ayad Compras ms Consolidated Statement of Changes in Equity and Comprehensive Income Comp nd epid 3M Company and Subsidiaries tn" Years Ended December 31 cusp at Consolidated Statement of Changes in Equity re (Millions) a TTTH= oETa hms Tmar mfey Total Common Stock and Additional Paid-in Capital 3M Company Shareholders Retained Earnings Treasury Stock Unearned Compensation Accumulated og Other Comprehensive ofoef Income (Loss) ofey Noncontrolling Interest Balance at December 31, 2007 --" Net income SE in Cumulative translation adjustment es Def'med benefit pension and meas| postretirement plans adjustment Rr Debt and equity securities -re unrealized gain (loss) rer. Cash flow hedging instruments -pi unrealized gain (loss) ee Total comprehensive income TIT, Dividends paid ($2.00 per share) Sa Amortization of unearned pre compensation Wr Stock-based compensation, net ee of tax impacts rrReacquired stock LL-. Issuances pursuant to stock ET option and benefit plans Balance at December 31, 2008 -- Net income SE in Cumulative translation adjustment a Def'med benefit pension and te postretirement plans adjustment Rerrmie Debt and equity securities -prehi unrealized gain (loss) SE Cash flow hedging instruments -pFunrealized gain (loss) pre Total comprehensive income STII Dividends paid ($2.04 per share) EC -- Transfer to noncontrolling interest Amortization of unearned es compensation ie, Stock-based compensation, a net of tax impacts Wo Reacquired stock a Issuances pursuant to stock ie option and benefit plans 10 $ 12,072 $ 3,520 2,798 $ wo20,295 $ 3,460 (10,520) $ (806) com(2,092) "(11) 72 683 ah I (1,421) 39 I 217 odo wa (1,603) ww ww 317 e = e4J $ 10,304 $ (1,398) 217 3,015 $ (1,603) (130) 22,227 $ 447 (11,676) $ 3,244 3,193 273 (314) 10 w(80) 3,133 ah(1,431) -- (66) "40 wom 213 213 o(17) Ci10 TE 1,060 wn(1,431) TEmo(236) (17) CHumE 1,296 (79) $ 39 (747) $ - A8 (888) ano (2,072) = (11) Fm@ 72 325 60 82 (20) --- (23) mm o= -. moe5 (40) $ (3,646) $ 286 (309) 10 (80) 424 51 (13) (5) -- -- ow (15) 81 -40 TS wm TE Balance at December 31, 2009 $ 13,302 $ 3,162 $ 23,753 $ (10,397) $ -- $ (3,754) $ sea hemp Noes Como FelStems sglputo is ames. The accompanying Notes to Consolidated Financial Statements are an integral part of this statement. "46 Ikon Table of Contents Como SmtCone ty Cond Consolidated Statement of Changes in Equity (continued) m---------------- wo https://www.see.gov/Amh ivas/edgar/data/66740/O00110465911007845/a 11-2060_110k.htm rsnovez 1758.0042 42/114 zane 1/13/2018 Migsohcivesadg OGoTt IOOIOUSEHIAOI.O20T80A_HSOk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm o_(Mm`illei_onBs) _ast_Dlec_eamb_enr3c1_,0e0_9 _ Balance at December 31, 2009 m SIaA Total $ 13,302 Common j=) Stock and Additional Fit Paid-in Com Capital 3163 $ 3,162 SMCompanyStarotis 3M Company Shareholders Red Tmo Retained dm od Earnings 3 23755 5(09D $ 23,753 Treasury Stock $ (10,397) Accymined Accumulated Other Compan Comprehensive Soha Income (Loss) 307%) $ (3,754) Non- cmon controlling mr Interest 588 $ 538 CNuNemetutiliannctcoiomvmeeetranslation susiment 40s 4,163 oss 4,085 205 78 DCDaefuenimfidnnueepladdtboibveeesnncterehfaintisppleemanntsiseoiiponolnnnaantdsjuastdmjuesnttment 244 @ 205 39 wn DeDberabtnetdaaanlnpiddoezseqterqudeuittiigtryayeismsneeec(cnuu0trr%piit)liatensise---as-djustment (42) 3 (40) (2) a-- CCaasrushnehraffelllaoiolwizwzeheheddeddggggaiaiininnngg((liilononssssst))rruummeenntss ---- 3 4 3 -- `= DivTuTiondotretaealnaldlccisoozpmemapdpirgredeahh(iene2nn.(ssl1ioivv0sesep)eiinncscohomamreee) a4ws,3n7o24) as 4 -- DPPuuirrvrccidhhaaeasnnseedoesofpffsarsuiuobdbmsi(s$dindi2oia.a1nrry0cyospsnhehtaraorrsleehsisanraagenn)dderst (1,500) (256) (1,500) 4. am SStotootrfccakkan-bsxbafaesisreemsddpfarcccoootmmsmppneeonnnscsaoatnitotrino,olnnlnieen,ttg interest (256) 3 4 mn 39 (299) IsRRseeuaoacafcqnqtuacuixeirrieempdduprssattsocouctcaskknt to stock option nd Gn)311 (880) 311 a(8080)) IsbsbeBuenanenfecifaeitstppplalulaatrnnsDssueaacntetmonbsetorc3ck,op2etio0n0and 316o061s678 $347 5 79(639453) 3 (01t2,o061n10 3 Gs) 5 Balance at December 31, 2010 $ 16,017 $ 3,477 $ 25,995 $ (10,266) $ (3,543) $ 354 T[ reasu--ry st--ock Supplemental share information mo 01 ano 2010 2009 2008 TrRBeBeaeessggcuiiqnrmuyniiisnnrteggodcbbksaatllaoincnkccee w23130,a473236,e96367 2s50o,24a8594w,4716e99 232B41a,84g727m4,0o02s05 EndsRIisunesaaugncaqcnbuaceeilsrsaenppdcuuserrtssouucaaknntt to stockoptionsandbenefit stock options and benefit pars plans 10,572,666 Tiegsuss (11,951,155) 254,419 n_um3ie0s) (17,310,251) _ 21,424,003 2(0s30u6as (5,811,259) Ending balance 232,055,448 233,433,937 250,489,769 Consolidated Consolidated Statementof Statement of CCoommprperehheennssiivvee IInnccoommee ((LLoossss)) oR_ (eMmtilileinonc_ so) me _tudin_ g ron_ eontr_ lTog _erst_____ Net income including noncontrolling interest OteCurmcuolmaptrievheetnrsainvsetiinocnosmues,iemtenotf: Other comprehensive income, net oftax: D`DCDeefuebmfitinnuaeelnadddtbibeevqenenueitefrftiaitynt sppsleeeacnntusisroiiionotnniaedaas,njnuddusntpprmooesseatntlrittezitierrdeemgmaeeinnnt(t p0pll5aan)ss aaddjjuussttmmeenntt `ToCtDCaalaessbthht fhafllnroodwcweohhqmoeupddrigtgeiyhinnsegegncsiiuninrvssitterriiueunmsm,ecneuotnnmstrs,ee,auu(lrinlzoreeseda)a,liginzaeeeinddg(gflioatinsnas(x)(0lo5s9s)) CCTCoooommtmapplrrpoeerethhhheeeennrnsscsiiiovvvmeeepiiinrnneccchoooemmnmeesei)v((lelooossisns)s)caoiinmnccelluut (ddlioinnsggs)b nn,oontcnoeactnrooou innfrtotoraorlxilllairinnlggliiinnnbttgeerrieessntl t ert CCoommprperehheennssiivvee i(innccoommee()llooss)satrbsable attributable ttoo IMnoncontrolling interest Comprehensive income (loss) attributable to 3M a waee 2010 $ 4,163 4244 w@(42) 33 i4 Er)209 wn 4,372 ns(115) --A $ 4,257 a m am 2009 $ 3,244 mn273 ai) (314) 010 a(80) iis(111) 38 3,133 53)(33) --$ 3,100 m 5 m am 2008 $ 3,520 00) (806) om) (2,092) a(11) n72 Ew) (2,837) &683 122) (122) sot561 "Theaccompanying Note to Consolidated Fineial Statement sr an negra paof this ststement, The accompanying Notes to Consolidated Financial Statements are an integral part of this statement. 47 `TabTleoofifCCoolnetesen.ts 3`CCMoonnCssooollmiiddpaaatteneddy SSattnaadtteeSmmuebensntitdooiffaCrCiaaessshh Flows Flows e3M arCsoemndpeadnyDeancdeSmubbes3ird1 iaries Years ended December 31 o_ C(MmaisllehioFnls_ )ows fr_ om Oper_ ating _ Activiti_ es ____ we 2010 Cash Flows from Operating Activities Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htrn 11775588..00004433 wm 2009 ms 2008 ame 43/114 zane Migsohcivesadg OGatTIOOIOUSEHIAOIO20T80A_HSOk om 1/13/2018 https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm NAedtjiunsctommeeninttcsolurdeicnongcniolencnoetntionlcionmgeinicnlteurdeisntg nonconiolling ners to sae s sams Net income including noncontrolling interest $ 4,163 $ 3,244 $ 3m 3,520 ADndenejpuetrtsctecmaacsseihhniptpsorrontoovvairinddeecedoddanbbmcyyeilroeotpnpzeearettaiitnrioncngaomaatccettiiiivvnniicttilegeussding noncontrolling interest to 1120 Lis 11s `CDCCooeompmmprppeaacanninayyytipppoeeennnnasssniiiooodnnnasaamnnnodddrptppiooozasssttrrrioeeetnttirrremmmeeennnttt cxcoopnnettnrrisibbeuuttioonrss 1,120 E(ros)(618) 1,157 =2) (792) 210)5 1,153 (474) LSCSototsomcokfpc-raboknamyessepdadelnccesoooimmofpnpbeuenanssnisadanttpeiisooossnntereesexxtpipreeennmsseeent expense 322 mpy274 pa22=21,37 105 m5202 EDLDeoefsfxeserrfrrrceetoddmaeiinbnsecacnosloeemmfoeiestfttsbaauxxresesois.nmesssoesc basedcompensation -- amy (170) -- a1701 a9293%y9 CEChxha"caAnencgsgcseeostsuanixitnnsbaaersnessceeesftsiiatvsananbdfrdloellmiaibslitloiicteikes-sbased compensation (53) (14) (21) ass) ss 197 InAAIvnccevccneootnuoutnrontirtssieesrpseacyeaibvlaeble (((14148040g694))) a41s550350 197 a@m9 (127) AcAAPcccrccourruueenddtoasiinnnpdccadoyombambeeelureatiaxnxescesusr((acctnuucrrrereenrntteaanncddeklooinnggva-tntaerdrbmmc)l) les 221854[55]6 109 aaon) (147) (224) (1x53) (143) NetOOctthaPheserrorhdp-rur-econtvteiatdneddobtyhoepr einrsautrianngcaecrteicveievsables and claims 49 Si2279 a(639226994)) 153 ann70 Net cash provided by operating activities 5,174 4,941 4,533 CPCuaarsschhhFFalslooewwossffpfrrrooommperIInnyv,vepeslstatiinnntgg4AnAcdtcietviviqittuieessipm(PePnLEt) PrAPPocruoqcrccueehieeasddsisesosnfrrosoo,fmmpesrsotlapoleeefrotoyfaf,sPPphPPlsAa&enqEt iananvnddeddetoqthuhieeprmsaestsnetts(sPP&E) PAPrPuuocrrcqcceuhheiaasdssisteeifssoonoofsfm,mmsnaaeartrlkkoeeetfotaacfbbamllsaeehrsskaeeecctqcuauurbiirrlteieeedsssseacnnudrditiininevvseessattnmmdeenintntssvestments PPPPrrorrooocccceeeeeeeeddddssssfffforrrooommmmsmamsalalaeetuoorfibfttumiessaiuronokfefemsmtraasrbaekrlseekeetstaeasbcbluleeritssieeeccsuurarinittdiieeissnvestments NOPOetrttohheccerearesivdnhesvsaeftrseotiidmnniggnsailenvoesftbiunsginaectsisveistes Net cash used in investing activities am (1,091) 2525 ag (1,830) Gas(3,287) 195 1,995 156s. 1,565 ---(66) a (2,689) om) (903) 74 (69) 2) (2,240) ig718 os683 55 p=-am (1,732) asm (1,471) 587 390 (1,394) ean (2,211) 1810 1,810 0692 (]88 aw-- (2,399) CCChaaassnhhgFFellioonwwssshfofrrrootmmteFFmiidnneaannbcctiinnggnAeActct.tiivviittiieess PrCRRoehecppaaenayeygmmdeesiennntrtsoohomfofddrdtee-ebtbbetttrm(((mmmdaateatuubrtrtiit-ttii-eeessnggeretrseeattteeerttthhhaaannn90900dddaaayysss))) PPPRueruorircccshehsaeassdsneescssoferosfoofmtrfrederaessbeutsrs(ymsssattotosucctrkkoictikes greater than 90 days) DRDDiveiviiisidsdseuenantdndscsrpepsaiaiotioddfbtttoroouenassctshhuoaairrnryeethhoosootlollniddcneeksgrrssinterests Distributions to noncontrolling interests OEtxhceers--tanebtenefits from stack basedcompensation Excess tax benefits from stock-based compensation NNOEefetfthtececctaraos-shh-fuesnxseeectddhiainnngffeamrctaniecnicnghgaanacgctetiisvvoiittniiecessashandcash uivlents N(NECeafetfstehnicnatccneordaefcsaeasexeslc/h(h(eddaeqencucgrireeveaaarsalsetee)e)ntcinsnhcacaanasbgsehehagsaniondnndciccanaasgsshohhefaqenquydiueavicvraaalslehennettqssuivalents CashCash Cash andcashe and cash and cash quivalents equivalents equivalents atendofyear at beginning o at end of year f ye a r ay(24) so (556) 108108 aso (854) ws666 son) (1,500) =-- 553 a(14) am (2,121) @(27) 357337 30403,040 aam $ 3,377 (536) (536) G19) (519) a41 an(17) a431 assy (1,431) =-- u14 33 ao) (2,014) @(4) TB1,191 La1,849 Tow $ 3,040 61361 980 (1,080) 1756 1,756 en (1,631) 2%289 [=] (1,398) @)(23) 221 6)(61) TW) (1,766) as (415) @(47) 1896 1,896 $ism $ 1,849 "Theaccompanying NotestoConsolidated Fineial Statements sr a negra paofrhtis statement, The accompanying Notes to Consolidated Financial Statements are an integral part of this statement. E4l8 `TabTleoofifCCoolmnetreenst.s Notes to Consolidated Financial Statements Notes to Consolidated Pinancial Statements NOTE 1. Significant Accounting Poices NOTE 1. Significant Accounting Policies `sCCioognnnsisfooillcidadanatitsiouonbn:s:i33dMiMairisisaacddroiivnvesreosrilfisiededaggtlleoodbb.aallAmmlalannsuiufgafnacictftuiurcreaenrrt,, iteenscthhennrocololoomgpgayyniiynntnnrooavvnaasttaoocrrtaianondnds mmaaarrrklkeitemeritotoefefrda.wwiiAddseeuvvsaaerrdiiethtyyooffepprrootdhdeueuctcttsesn..mAA"ll3l,M" or "Company"refers to 3M Companyandsubsidiariesunlessthecontext dicesoberwise. significant subsidiaries arc consolidated. All significant intcrcompany transactions arc eliminated. "Company" refers to 3M Company and subsidiaries unless the context indicates otherwise. As used herein, the term "3M" or Pigs eihciesodgr Go ADOIOSHIOOTASA-2060_1Ok Mi https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm ane 44/114 11775588..00004444 zane 1/13/2018 Migsohcivesadg Got OTIOOIOUSEHIAIO2O08T0_AHOSk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm FFboorreieiiggennccfuuorrrreoennpcceyyrtatrrtaainnosslnlaanttiiloocnna::lLLcooacmaaelcncuucrryerneecnnicveiiesrsoggneemnneeenrratalslllyysaraeeretcrcoaonnnsssliiaddteeerdreeaddtythheeeafrfuunencnctdtiieooxnncaahllcacunurgrerenecnaicccises.soouIutstsniiddeectathhneedoUUreinxmtpiteeenddesSeSattaetsem,ss. AAsasrsese.ettssaanndd ratlriaaabncislnliatcitesesdufaaotvromaotevpehuerrarragaclteioomra naapstreeitsnohoefe lonfeescexiaxdlcvc-hehcsauaninrgrngeecenporcpmeyreveeav(niaolvilsiiirnn)oggnidmnduusrerhniiatnnsrgeathtrhhoeeltdryyeaeernaar'sr.l.caCCtaeuudmumua.lutalyatetiiavvree-etrnraadnnlesxalatcthiiooannn adjustments re ge rates. Income adjustments are recordaed and expense recorded as a component items are component ooff accumulated other comprehensive income (loss) in shareholders' equity. `CWWihhfiiillceea33tMMiogngen(eenAreSaralCll)lyyc$c3oo0nn,sFsiioddreeerrsillgoonccCaallurccuuerrnreecnnyccMieaetsstaaesrstth,hehffeuunnrccetptiiooornntaialnlgcccuurrureeraneccciieyesooofuuttassiifddoeeretthiheegnUUnnniiittteeydd'SSpttaaetreses,n,utunniddeaersrAsAcuccmoceuodnutnitbinngegtSShttatanncddnaairrydd'sss ifsCfuuosnndpcciptifiroiocnonaanatliilocmcnauut(reAreneySncCc1yy0)w0w8hp3hee0enr,ncFettohnhreteecoeiegcanmononCoroummerifircceoenenctnvhyvieMirrtooahnntrtmmeeereynsnet,tatoohrseffaartehofporaorceritriiggennncgeeecdnnutetirittrtyheyenibHcseiyhggioighfnhlanlyyifnioinngrfeoflilfgaattniioreonennpaatiorrtyryyt-'sg-igenpenganpereererranailtlollidysy.aww3shshMeuemnnhiaeistsdsctcsouuummbbuseluiatldhatitaiaitvvreeeyniiitnnintfaylat'stiioonn {a`Visetenancpehrpzuerucocelxulaaimwmuwilaitattehthliyaovp1ee0ir0pantpfinetrgecioeinnnncrctrootommereemoirfroeerVpperernefenosseercrnntgahtiieennaggtihlsreeesNsesoyvthheeaaamnrnsb11et.h.0r0a2ptp0eep0rrrcce9eecnneetdtxoeocfefthe3MedM'ebds'esg1cci0pononennsrisonoclgleiiddnoaatftt.aeeddrAeoopppoeecrrrtaaitntiigcnngpgeiiorninbcocodermo. fr3eiMdfnfoaornrh2cia2i0s0a1l1a0ns0,s.ut33bgeMsMindddlitaeerttsyeeyrroimnmfii,nnheeedd `Venezuelansubsidiarywer remeasureadsii funcionalcur were tht of s parent begining January 1, 2010. that the cumulative inflation rate of Venezuela in November 2009 exceeded 100 percent. Accordingly, the f'mancial statements Venezuelan subsidiary were remeasured as if its functional currency were that of its parent beginning January 1, 2010. of the ReiRgmeuegluaoltaittioionmnesbiinnyVtVehneeenVzeezunueeelzlaauerrleeaqgnuuiigroetvtehhrepnpumurercnchtha.asCseeraaanniddsnsaallleaewoosfffnfootrrheeeiiggcnnocucuunrrteryen,nchcyoytwteoovbbeere,mmaparddoeevaiatdtoefoffafiinccaiealxlertmaeptestsioooffnfxexcochhaahnneggpeeurthhcaahttarasrseeaffn'iLdxxeedadlffrrooommf cptcieuemrrrttecaahiitannosssteieemcitcuefrubirtryiemetshVaaeennnVddeerrrneueescsuzltul'teeeslddaCninongamaomnnvieiisrnnsnddimiiorreeenncctttf.""oCppahearreratalalAielnld""lammmwaiasrrnkikneiettthsttehtrrcoooouuufggnhhFtworwyhr,eihhiicgcohnhwEccexoovcmmehprp,aaapnnnirgoieeevssi(dooCebbAdttDaaaiIinnnVeeIeddx.effomoIrrnepeiitMgigoannncyc2ufuo0rrr1re0etnh,ecyphwuertVicethhhnoaoesuuzetuhahenaalvvdaiinnsnagglettooof TgpgrouoavrvnceeshrraanncsmmteeienointnttfSrttooyomooskktVeccmoeonnnftetrorzooFulloeoorlfafe'tstihhgCeenpoprCmreuevmtvieiioosnusucsisoyllnyyDfffreoreerncelotlhyym-e-itArndaaddetmedddinppSiaasertrcaralaulltlreieollenmmsaoa(rfrSkkFIeeoTt.r.MeTTiEghh)neegiEgsoxonvocveherarnannsmmgeuenennt(fCt.a-cvAcoooDnrntaItrbVroloIell)le.eaddItnharaMeeteptarytheh2vati0teo1emum0es,ertprhggaeereaddVluleunennldedrezeaurreettilhhaneen nneww `cTcVooermamnpnepaszaarurcieitslsioooannnnsttSuoobysttshhiteeedmiooaffrfffioyiccriiinaFalJloarraaeetaiesgrs.n.yAACs2us0rpp1rrre0een)vvc,iiyoo3uuDsMslelyycnhoddamiinssiccgnlleaoodtsseeetdddu,,SaaeescouoofrffiDtDtiheeeescc(epSemarImTableMblreeE3l31r1)e,,xisc22h00na00on99tgae(psprruaiinotferoaftrvoooattrhhaeebnlccehhsaaasnnaggtheeieiionpofrffeuuvhnnneiccottuifioosnnnapaacallircacaulllurerslerarnatrctyeeoeimofnnfe3nMcMto'ysfs's irVittsseenVVmeeceznnaueeesrzluaurnecelaasadsnunbfsssiuuitbdbssisaiifddruyiinaacirrnytyi.JoBBanneaeluggcaiinurnynrii2enn0ngg1cJJ0yaa)wn,neuu3araMrreyytch11h,a,at22n00og1f1e00di,,staaopsduadrisieessncco.uufssTtsshheeeiddspaabaebormoavevleale,es,luttehhrexeecfmfhieiannnnaatngnuceciiiaralallitesszteafdaotertmttereananptssaloaroftlfiotethhneerotVVfeetehnnteeerzzfouiuuenelgalanahnncMissaauulbbyssst2iaid0dteii1aam0rryeyn2aa0trrsdeeotfhe SITMErtethereat. remeasured as if its functional currency were that of its parent. This remeasurement utilized the parallel rate through May 2010 and the SITME rate thereafter. "fTThuhenecCiCooomnmaplpacanunyyrcecoonnttiinnouufeehsstitsoosummobonsintiitoodrricciairrrnccudyummassststaaocnniccaeetsserrdeerllaeatmiiveveeasttuooriestsmeVVneetnneebzzeuucgelilaannninssugubbsJsiaiddniuiaaarrryy.y. OO1,tt2hhe0er1fc0aco.to3rrsennloowttwiotifthhsVstetaannneddziiunneggi, 'tthsheeeccchhoaannnoggmeeiciinn eefenuxnvncvihcirratoiononngnmmeareleanntctetusdrdre1eecc1nrr2cee0yaa0ssoe9fdytnheneiaestrts-ssaueanibledsss)iod,ofibafturthtyhdeeaVinVeddennaneeszszuouoecetlilhaaaetnnreswdsiuursbbeeshsmdiadeiviaraseyruybarebmymyaatpeaenppitrpsborolexxgiiiimmmnapnataitenceltglyyoJnttawnwouopoa-eitrrhyaditr1ids,nsg2iii0nnn122c000oa11ms00eiaainnrncecosdoumm3lptVapTora'fisrVissceooonnnnesttozoolu2i2e0dl00aa0't9s9eed((rcbbeoaasnssuoeelddmtsoioconnf operations. exchange rates operations. at 2009 year-end), but did not otherwise have a material impact on operating income and 3M's consolidated results of yRReeaecrcllaapssrsseiisffeiincctaaatttiiiooonnns:.: CCeerrttaaiinn aammoouunnttss inntthhee pprriioorr yyeeaarrs"' ccoonnssoolliiddaatteedd Src] financial ssttaatteemmeennttsshhaavveebbenen reecclaasssiiffieidettdoo ccoonnffoorrmm ototthhee ccuurrrreenntt year presentation. UmUsaseneoaogffeeemsstetiinmmtaatet0esms::aTTlhheeeeprerepspaarrtaattiiiooannnomdoffafasfimsnutaamnnpccetiiaialolsnssstttaathetmetmeaenfntetsciitnn hccoeonnrffeooprrommrititteyydwwaiitthhmUUS.S.o.oggfeeuannseercrnatalslllayytanacdcccelepapbttieelddiacecsccoaouudnntititnnhggepdrpiirsnicnclcioipspluleresesorefeqqiurireess crmcoeonapntonitrainntggigeneemgnnteptaenasrtsisstoioeds.tms aAaannkcdealelisabtbrimiielsilautilteietsssaacatnottdhuhedeadsddsiiautftmefeeporotfffitotrhhnoeesmftfithinnhaaeatnsncaecifiaefaelslctssitatmtahattteeeemrseeepnnot,rst,aeandndadmtthhoeeurnreetpspooorrtfteeaddsasaemmtosuoanuntndstsliooafbfrirleeivtvieeennsuuaeenssdaantnhdde xpensesduringthe disclosure of expenses during the reporting period. Actual results could differ from these estimates. (eCCsaassshhwahanendndccaaacsqshuhieerqeudui.ivvaalleenntss:: CCaasshh axndd ccaasshh qeqiuviavlaelennttss ccoonsnistsooiffccsaassthh aandd tteemmppoorraarryy iinnvveessttmmeennttss wwiitthh mmaaturtitiuesoioffitthhrrseee nhs months or less when acquired. MhaMorlakdreiktneagtabpbellreeissoeedcc,uurtrihitetiiseeessc::urCCilltaaysss'sisimffiaicctaauttriioionntoyodfftmmkcacratkneadtballbiqleeuissdeeicctuuyrcirotitiniesesisdaaesracutueirronenntsbtoaosr noonon.-nccumurarerrenkntettiisscddoenedppieetnnidodenesnn.tt tu1ppmoonanmnmaanganeaamggeeenmmteeninttn''stifneeten0nndhddeeoddsd he swehsiceouctlrduihirtnititgieemspsaferforokiroredtlloa,onbnthglgeeeersrstetehhcraaunniriooteynns'esymyieneaaaatrcruacarosistryoodfafdtntahhcteeeebwabainaltdlaahnnlcicqheeuesimshdhceietaeyetstcudoraatncteser,i,mdtthneherteayytiaoarinredslacbslnaasssefspdiefrioodenvdiamadsseadnrnkbooennyt--AaccrSuorrnCreden3intt2it.o.0n33,sMM.IIsrrfeeimvvmiiaeeenwnwatssgiseimm-mDpepenaabitricmnattenendnstEdsssagotsoscoyihcoaialtdteetddhe Secure,whendetermining with its marketable securities Securities, when determining thein accordance the with the measurement guidance provided by ASC 320, Investments-Debt andEquity a4w9 `TabTle oofifCCoolennteesnt:s cocllsaasssbsieiffiiicncaagttriooenncooofrfdthehedeiiinmmtpphaaiirtrmmheeennrttcaaossm""pttreeemmhpeponorsraiarvryye""oionr"c"toomhtheeceror-tmthhpaaonn-ettenemmtpopoofrarsarhryy"a."r.eAhAtoeltmedmperop'roarqaruryyi.iimmSppuaaicirrhmmaeennntut cchhnaarrggre rreeessluulolttsass iidnnolacansnuniunornerrzeaaleliidzezeesddndet inflioncscrosoemmbeeneinfftgoorerrtethhcbeeoerptadppweepldeliiniccnaatbatebhlmeepcaoocrthcacoerruyoncatonimundgppanpreteerehritreioo-nddshibiabveneecndcaiaenuumgcsspoeeamrtthehaeercyoloosmsispinoisscnnneloonttttovveiifeepswwhreeajddreeahcsooitloddhtheeurersrr-'-hetehaqanunc-ia-tetysemh.mpfSopluroocawrhsra,ryayc.n.rTeuThdnhierteefraafalacitctzitoenordgrsssalovcestvasialodlnuuosaee,tseddannot0odt reduce net ascssofmthernett qualityofthe underlyingcollateral, awel as differentiate between temporary and other-than-temporary include the assessment of the credit quality of the underlying collateral, as well as ihe tons projected future other factors. cash flows, credit ratings actions, and Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm me 45/114 11775588..00004455 zane Migsohcivesadg GotOTIOOIOUSEHIAIO2O08T0_AHOSk hom 1/1IIo3nnt/vv2ee0uss1tts8mmdeennnttts::heIInnsvveeissttnmmeeenn.ttssAppvrariiimlmaaabrrilhleyytftpoiisnnr:c/cs/lwlauuwlddewee.cisenqeqcvuu.egiistoyytvam/aenAnnrddtcshociossvestrts/mmreedeetgcthahoroo/rddddaiiteanand/vv6eef6ss7itt4mmv0e/ean0nt0lts0se,1,,1aa0vvU4aa6ini5lel9aaa1bb1ille0ze-0fef7ood8rr-4-gs5saa/aaill1nee1sce-2aq0nu6ydi0tly_o1sii1nsn0evvksee.hssetttmmlmetennittnss antnoddinrreveaellsteemssetatntetes Cnloatssuisfeidedin valablefo the business. rAsvaeilaabeler-foer-saclesionsvrecsotmdmpenoetnseadnrteorfecaordcedcat fuairmavalluurec.loUmnaprreeathleizneesdidvgeainisncanodmelo(sosess)renlastihnagretohoilndveersstmseunits. classified as available-for-sale are recorded as a component of accumulated other comprehensive income (loss) in shareholders' equity. OintOshtuhererarnaacssessepestos::iOOstth,heerraaansdsseoetseiirnnccollunuddgee eddreemffeersrrreseddciin.nccooImnmveeetsatatxxmeesen,s,tpsprroioddufucecttaiannnsddurotahtnhecereriainnrsseuurrreaapnnoccreetreredecceseitivvtahabeblealesms,o,utthnhete cchaaassthh cssuerrnoedbndeuerrrelvvsaailluzudeeedoofffunliedfeer Caicononsnduttrrajaacnctuctaeastpttoohhtfleipbcmbariealeselama,nniacncuneemdtsssohhtpeehaeteitddr.adltoaCetne,ag,w-hwtieiotrtmuhhtaafannlsyoysweccsthsh.aaanInnndggveieesnsiftimlnnoccewanassthsahssissnuuocrlririfaeaendteidendersrvwuivartaalhnluucefeeoeoarrciecnoorsennputarorarccteetvadvcaatallituuvteihdteduyursairmrinngoguittnnhhtceetphhpeaaerdtridicoooiddunala"dccPccbouoeuurrnncettaheeladdizfsfeoooedrfrsauasnsdaaennr marketablesecuriisand investments"and "Proceeds fromse ofmarketablesecuritiesand invcstments",respec. adjustment ofpremiums paid. Cash outflows and inflows associated with life insurance activity are included in "Purchases marketable securities and investments" and "Proceeds from sale of marketable securities and investments", respectively. of IInnvveennttoorriieess:: IInnvveennttoorriieess aarreesstaatetdaaett tdhhee lloowweerr ooffccoossttomoramrakrkee,t, wwiitthh ccoossttggeennerearallllyyddeetteerrmmiinneedd oonn aa rst. first-in, stoutbass first-out basis. PPrercooprredretyd,aoptplclaaosnnpttta.anDdeedepeqrqeutcuiiippammte,ienontnot::fPPrproropopepererttyry,y,,plllaaannntttaannndddeeqqeuquiuippimmpemenentnt,,tiignnccelhuidnningegcacrspacipatoitamallpliiuzzlteeddeydiinunttseeirreenssgtttaahnnddsiinnttteerrrnnaaallieengnggimhineneteeehr-rioinlndgbciaocnssotseetsds,,oaanrre:the ehreesesctiomtmradiajetomedrdiaatuttyscfeeioufnsudlttl.lhlDieivvereepsasroneofgcftitoahhftieo2a0ansssoseef4stps.0.roTTpyheheearrteeyss.s,ttpiiTmlmahaanttteeaddtnuiusdmseeeaffqtuueulldipvulimsvsefesunoltofgfblbeiunuvieeillsroddaiilfnlnyggmssisancnadodmiimpmcupprtareoodhvdveueemmsqeiineunngtitsptsnhpmpererinsiemmttrapaarririgriillhymyt-arrlyaairnnnygegeemfrfraerotnohmmgodf11bo00am1tso0et44dh00oryyneeettaoeahrress1,,5wwiitthh aytyheceeacarormssu,,natwwjosiirttuihhtyttlhhineedmtmihsaaepjjoorosarranilitg.yyeUiinonpfothh2nee0dirrtsaoapnno4gsg0eaolyof,efaafirisvsvs.eeeTt1sohaen11ed00syyrtieeemlaaasrats.t.eedFdFuaulucllsycleydufmudeulelpplairvtereecsiedadotceefpdmiraaeasasccssiheteaitsntseaieaorderyneararreneetdtaariieennqeemuddoipiivmneppernrofotprppeoerrmritmttyyahaanrniadldcyacarcoacucncnuugtmmesulfuaranloatdmteetddthhddreneeppetrreteoocciui1aatr5tiisoonn, `ealecsscssowppurrnootchcseeueeenddvetsesinlfftrdrsnooismomprdovdicsiahsslapp.enooUgsse)aps,lro,iniinsdcccihisharparcorgugsemaeldsd,aooanrsrcscreerestescdihaiinnteeddddirtecooltaootphpeederaaraattctiihoconuncsms.a.uyPPlairotnepdgreardtmeyop,oprpuellncaaitnnpatttafiaonnndaedneaesrqeqsuruierieptpmmm(.eoesnvnteetdtaagmfrroomomuunpott)hsmesauraraeycrcnnreoeovvuttiineetbwsweseearddnefdfcooothrveemimrpnapesbtaliiaermmmAeoennuntnt t, eiwixmphmpeeacnpiterevmadeetrinoetrvlrleoeosmsnsusstwlsetwofonuoroulctmlhddatbbnheegererusescienoeogfcnitrichczueedmaowwsshtahsenegncnaetshnhneeidnccsdiaaicrrcraieytzeninntgtguhaeaaamltmodtuhoidsenupntcotasoirofrtfyiaaoinnnng.aaTsashssmeetotaeuemxnxoccteueoeenfddtassnothfhaeteshseeeessttt(iimapmsaaastteenetddgeruuonnuddpii)ssoccmosouuatnnyitbneedodetffrbueaetcutorreerecdccoeaadvsseihhsraffcblalolloewcw.ussAlanted bythe exces ofthe sss expected to result from the by the excess of the asset's camying valu overis use ofthe asset and its carrying value over its ir value.Fai valu eventual disposition. fair value. Fair value s generallydetermined sing adiscounted cash low analysis. The amount ofthe impairment loss to be recorded is calculated is generally determined using a discounted cash flow analysis. ChCoenodnrideiittoiionrenamalelnaatssossfeetttrraeenttiigrrleememelennott ogbblliivggeaaditioosnnesst::sAAlliahbseipliietyriiissodinnaiintliawllhlyyicrrheeccioorrddneeddcuattmifeardirvviaalluuerefefsooornaaanblasessttet rreeittiriermmrofeennfttiaaorbblvlaitilgguaaeticieooannnaabsssooccmiaeadtteedd. wwiitthh CVtChaooelnnrideduittisoiroiennmna]gelenaaxtsspssoeeefttctrattendtrgirrieebemlsneeelntnottnvobgalb-lilluiigvgeaeattdtieioocannhssssneixetqsxiusieisntst,tffhOooerrvcecpeererrtiriaoiadneilanohnnweggh-btieecirrhlmmiittaaiisssesssieenstssrscucoorffrrtethhdeeeiefCCaodommrfepparasantonyhny.ea. bTTclhheheeaesoontbbiglmliiigganaattetthiioeooinnf fipasriieirnsivietaainllatullelvyyacmlmaueneeaabsaseuudrmreeahdddeaaett.nflairirl value using expected present value techniques. Over time the liabilities are accreted for the change in their present value and the initial cmapiiltlaolinazendcoS6t4smaieladnep,rerecsipaetcetdivoevleyr,tahteDreemcaeinmibng3e1ur,se2f0ul10liavensdo2f00h9e, relate asses.Th aserfrmentobligation ablywas$74 capitalized costs are depreciated over the remaining useful lives ofthe related assets. The asset retirement obligation liability was $74 million and $64 million, respectively, at December 31, 2010 and 2009. bGGuoosooidndwewislislll:c:oGGmobooionddawwtiiliollnl.iisstGthhoeeoedexwxciceleslssiooofftccoossattmoforfatainzneada.ccqGuqoiruoeddiweiernlneltidty ooevvsetererdtthhefeoraaimmmoopuuannittrssmsaesnistiggannnendeufatdoolyasseisntettssheaacqfquouuirirrteehddqaannddubliaaobifiliertsaiecshtayasesssaeuurmm,aerenddd iinins:oa eibtesmustpstaeieniddrefesfdoos.rcmioImpmmpapbaaiiiinmrramemtnieeontnntt.bbeeGettowwsoeedeewnftniolsarlnigninsouuosnnad]olwtetigealssmlttsoiritfdaizaonendve.aveGetnnottodoarewccpcioeulrlrrtsiisnootgrresccutiierticduefmrovrescltiam,nuwpcieamtsirhcmcshahleaalntnngtggoaaecnttwnnhhiuaatlactllwwloyesouiiulnslgddtnhiieenndddfoiicctuaa'rtttseehrtteqhhpueeoarccrtrtaieyrnrrigyoniufngnegiaata.cmmhoRoeuypuenoantrrttm,imaanngayd.ybibsee euimcnioipttnssaaoiarmecriedc.ooIncnmheeaprlfaeaecvietremellribebsneettlliotcoewswst.tthi3hneeMgbbfduuoissrdiingnnooegtoscsdswseeiggollmmiesenmndtatonlIneevybveoea,ltf,baiiburustetpaecnopanrnotirnbbeieegnccguoonmimibtbisleinnvefeeoddl,rwwwihhmietephnnaairrlrelmpgeeoonrpottidneawgstiriulnlnngiati.tsssswiAiwigntnnithehiigdimnnptoathhiaeermrsseeaapnmmoteretlsiosnesegsggmmgueenenninett.rthaRhalaelvvpyeworosstiuiimnmligidllbaarre rereescctooinmgeoanmtiezidcecdfcwihwrhaohrevaencnthetgahreoiescftcianlcaarsrrr.iye3upiinnMogrgtaediazmnimdgooununnoenittttocoofsdfmtdthebhetinrereerepmpaoionrnrytteiiondnfggsiutuisnnniritget''pssconnreetaittnaagnsssusenestisstseexoxfcorceereeeirmddespspatharhiteerimneegessnttinitmimtaeamtsteteuiddngafla.iiArlr vnveaaillbmuudyeepaooaifpfrtmrthhieeecnrreteecplpaoromstrsiitningnggegunueiarnait.tl.loyTTfwhhoeeoruld be ccecooosntmmispmipadaaretrareabadbtllifeeaoiinirnntddvhuaueslsmutareyrokggfreroatouvurpepeips,,oeororotribnfbgyytuuhusnesiiitCnnoggismaadpdeiadtsniescyrco.mouuninnteetedddcucsaaisnshgh flow analysis.Thpicieamirnatgo iss earnings for the reporting unit multiplied flow analysis. The price/earnings ratio is adusied, i pecssary, to by a price/earnings ratio adjusted, if necessary, to akefor take iinnttoo consideration the market value of the Company. IIInnntttaaannngggiiibbbllleeeaaasssssseeetttsss::wiIIntnthtaanannggiiibbnlldeeefauisnssietttse iiInncsclluunddaeemppealatyetncstes,r,tatrridandntearnraadmmeenesasmaaenns,d oaotrthehneerortitnatmaarntgiinbzleegdaa.sssIsienetttsasbnaagcciqlqbuuliierereaesddsferrtoosmmwiastnnh iinndddeeefppieennniddteeennftteppaarreyty.. aiIamnmotraomntrgitiizzbpeelddeooaanansnsaenitussstatrrlwaraliiiygtghhhtmat-an-lnlidineniaenerdbbeantafse'smsiitts,iet,wedwiliitfftohher,uuinssmaeepfmfauuleillrlylmiivveceenesstrrtarabanienngtgitwirnenaeggdneffrnraooamnmmoaeolsen, earte0o2n20o0ytyeaemaarros.r.tiIIznnedddee.ffiIinnnititateen.-glviivbeeldediainnststaaenntgsgiwibblilteehaaassesdetetsfs'maarirteeteleissfteteeaddrfefoorr impairment annually, and are tested for impairment between annual 5EF0) TTableiooffCClonotnetenetnsts: edteessfttissniitfeaannefeevvaeernntttooeucscrutrssefooodrrcicimirpcrauicmrmsuetanmntcswehstcechnahaeannvngegcereetetvhhesaantttwwsooourulclddiriicnndudimiccsaatttaenttchheastt the tnhie caring ccaarrytinhagt amount may ahmeoaumntyminagy be impaired. Inangiblessets bae immpoaoirfued.nsInittatng(ibsleitasgsreotsupw)itih witha ya DPndoloetoftwibbnseeiturereselccidofoevveianerrradeabeblttleeees.r.tAmeAidnnnfiioinmmrgptipamhaieiprmfamcairnermntvteanlooltsuswseihiosefenrtseehcoveoegagrsnnesiivztzee.nTddtwshwhoheraenmncoitrtuhhcneeutcmcaasorytfariyntinchneeggsaiaimmnmpodaouiicunrantmtteeoonfthftaaanotnasthasssesseecbttaeerexrxyrccieeneceegoddrsasdmttehhodeeuiensesctsttlioimmcfalaatnateedtadesusndednbtidys(iasctcsohsoueuntentgxetercdodecuscapa)soshmfh ay inttfthlheoeerwnaaasslssulesyste''sddceciavanmerrydlyieoitnnpeggervmdvaiiannlltuiuanengogovitvehberelrefiaatsisrsfsvatfairl,uvvesaallcouuehfe.t.hFsFeaaiairspvsveaatll.auuTehrisesneagegmeexnnspoeeerurnanals,tllleoyydfddteaehtsteeenrrimmcmuiipnrnaeeeiddrdmw,uiespnnigntglroaassddiitisoicsmbonceu"onraRteueecndsortcrecdaeaaesysdrdh,fiflsldoocewwavleacalnunaolalaplytymseseidinssb.t.CyCoastodhtsetsseelrxeaecltleaaesttdeseddottfoo expenses" internally developed expenses." intangible assets, such as patents, are expensed as incurred, primarily in "Research, development and related Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm we 46/114 11775588..00004466 zane 1/13/2018 Migsohcivesadg Got OTIOOIOUSEHIAI1O1-2O20086T00__A1H1OS0kk.hhtomm eRRmepsltoreuyceteurrsienlgaatactectdtiiosoennrvsseaarnandndaceeexxicithtiaaarccghtteitvstipni,vsti:ece//osswn::wtRRrweae.csssttetcertu.uegccrotmuuvir/rAniianrnctgghiaioavcncettscii/oooesnndtsgsa,aaran/ddndacdteaixi/6ti6t7aam4cc0ti/t0vpi0it0vi1eioa1s0fgg4ne6ainc5se9rsr1elra1sll0lyay0sm7iis8no4ncc5eliud/aadteeendsswiigitgnptiihfiiccsaaunnctht aaaccctttiiiooonnnsss,iinnEvvmooplllvvioinnygge.e: rerreefemlllaaepttcleeotddyessedeeevnv-ertererhlaaaenntcceqeeducacshrehatvareerrggraewenshcearenraecthrlhaaeerraggcleetlysiy,bobcanoasssnaeetreddapucurtppotooebnnrambddliiinsestarratibibnouudntteechddoesaeetmrms,poplaulnoondyytmmisemenanpttapiperoosmlltiieiccnmiieatebssolafaenna,ddssWssehuutisbbcssahttsaasnnyottpciivcivaeeatelssdeeyvvweesrirtaaWhnnhccseeeuncppmhllaaaannncssat..igToThenehmsse.eseEnetmccpphhlraaoroygreevsese-asrrce {hhrtheeeefilaeasctssetsoerocdmciiiianantatetethdidoeaancqctdtuiiaooatnrnetsse..rSwSeweevrhveeeernraamntnhceceeseaasacmmetoiodounauntsnttashreefoodrprrwuowhebhiasicbcuhlhceahafafbfnfeeednccetttfheeidedtesamewmmpeloporuloynyectseeoesamsrmewwuerensreiteicmrraeeaqtqbueuleirt,eowdthhtoeoicrarhepentpyeldpireicrcsaasebelrllryevveiiimcscpewilinohnoyeornerdedmeserarnnt0oadgrrreeeemccceeeoiinvgvteenbiabepzenpenerdfeo1ifvisttesssaatt ceteohxneptierxantcesermbpvoeivefneoraerrttitohhtnenhedemmaeptnlespsolooywyefeeeeresessr'mtereeemrmaamsiau(nirnmieiednnaggasstseterhrveviidcscetaetfeppeeisrruiiocvodhdasslb..CueContnoettfnihrttrseaacwctttiettmereeerrmtmcihonieanmtCaimtooionmunnpianacnnaddtyetpodhrttheooevrtihccdehheaaadrrpnggpoeetlssiicppcarerbiitlmmeoaaretrimhillyypcrlrooeeufyfnlelteeeeccsrttcpaocansordttsstyrs)etcooootgtceenorrismzmteiisndntaaahtsetaatea wCwcihoilanlllrtrgccaeoocsnntrttbeinleiuafnoeturetteedoottobbheeeniietnnnaccdnuugorrirfebidetusunatndsedsreemertrst(thhmneedeccaoposnruntortrerpaadeccatrftfyoofapriliirtassvtraraeelunmmeadaiainentiqitnnuhgigeptttmieemernmmet twwhrieeiftbhlCoeocuouttmthcepeccaeoonnxnyacopmmerisoiccvoibbfdeeentnedhefefniaitotstotiosctetthh'teocCCtahooremmypcipaonanugnynvy.tae. lrAApussaessrsteotytv)ieimomrppachaioirrsimtmseeintnhtteat Vchaalrsgees related to intangible assets and property, plant and equipment reflect the excess of the assets' carrying values over their fair values. nRReovemveaentnueuereia((slaaeclesos)n)crreeecncorogagniintoiitniooonn:f:cTTrhhdeeiCCororimnsp.paRanenyvysesenelulles iaswwrieiddceorgraaaningzgeeeodwofhfpperrnoodtduuhccttrssitstokosaaddniidvveerrresswiiffaiireedddbsbosafseeooowfnfeccruussshttoiopmmheearrvsseasrruoobuusnntddatnththeievwweolroylrtlddrsaannndsdfhheasrsed 1ntocococumrusdstatsotoememresiraetslri.scm.oaTTtnhehcdeiisnrotcerdonaantdcidoitiinitioooonnnsf cnn0rooefrdmmeitavarmllilsuyykeii.osRmfmeervetetewcnwhourheedensnisettrxhhepeeceoppngrrsooneddizuuoeccrtdtchhwuaahsssetbbnoeemteeehnnreaddrneiesldlkiivvsdeeiarsrneterdddibooreurrtwuuorapprooidnnnscepponeeftrrioffovwoerrmsnm,eaarpnnsrhccieiemopaofrhfiaslsveyerecrvvoisicmucepbesrss..itaTsTnehhtdieevoeCClfoyoemmtbrpapaantannscfyysearrnedd "rfTeerheceeeoocrgdiodsaoedstsst,ei,madtattthreedehtriedmdeuueococftfitootthhnfeesirtienoonvifertnienlavusleessnfaauloleeer..roTeTrbhhareeetssceeesosrasdalarseleesbesxaiipsneecnnedsnocetnivfeoetrsnhcarursetsetlaoaiscmccceveoormuuenasntnt,seedddhdfifisoosttroriiirnnbiucsaatccolcercoironxdcraendpnctaeievnwweicsrit,trehhpeirAnAimdSSeaCCanr6nia60ly0l5c5,yc,oRRemeenpvv,reedinsreupederRooRejfecccrtoeoobggdanntmiietaosiornakn.ne.dt bcTcuooshninedndieeittssiitsooiemnnsssa,tibiennudttthhrteeehvdevauramcirotioiosouunstssmcmaoorafmkrrmekeetevtsensnssuieenerrcvvfeeoenddtr.i.rveSSebiirannetcceleesatttahhereeetCCobaoaommsmeoppduaanonntnyystspsheeaerrivvsdeeassolernmscuretmeerrdemoirtosu,eusdhsifmmsotaoarcrrkukiecsetattslso,,emthxehpreeesfrreioeebtnaacceteehp,iprterrovoegingrndraagammdnsseoaflofyifsfnfieersrdeeavdnodlvvuaaprrmryyoejaaelcccerrtvooeessdlsssmorarket businesses, but the most common incentive relates to amounts paid or credited to customers for achieving defined volume levels or tarxeoswahrobjneotctrievceosgnFirzeeedgiondrseverneuea.ccounedfor a anexpense and recorded i costofsales.Sales, se,value-addednd be excise growth objectives. Free goods are accounted for as an expense and recorded in cost ofsales. Sales, use, value-added and other excise taxes are not recognized in revenue. "pTTrhhoeedmumacjatojrooirptiteyyrofofofr33mMan'scsesaaollefessahagegrreseeeemvmiecneent,stsa3aerMe fafolosrrossaetantndedraasrrddipiproroodaduucgcttssaeanndndstseetvrhsviaicceceosnwwtiatiithhnccmuususttolommleercr seaccmccepentptatansncc(eesocochcccauurrricinnuggiupuppmooennnd,deelsliitvvaeerlryyloiofofttnhhee aWpannrhoddedsnsuiectretvoiacrsrep)soetovrrarfnnodnoirnom-nlasc-osntntcaaeeennvddoaa)afrlrtddhee1tee0srremtrmhvsoincacenud.ds3tccMooomndadeloirstionoshneens..tFeiForrsorvrianmmltuouulleiatsipgplorlef-eecu-menlldeeeemnmletisenvnttehtraaaentrdgrcaeocnrnegtmmeaeeminnnettmnsstus,rl,tei3IpMkMlenroreeewlcecnomo,gpenicnizuztsseetss(osrvumeceevhenanatcuseceefpqfooiuriapddnemeleleiionvvftee,rtreiehnddestecdaleelellmmaietveinoentrntssed pcwerleehemcmeeennedntiittnsshgahchsoaansssdotoaiccntcciduuo-rarnrelseod,dn,c,eiaavnnpaddmluttehheenetrroteeartahvereeecnounnisllteyyocmcuunseosrttt,ootmmhraeearcrfyyoarirrrdeeveffdauulnnuuddenosolrrotrtfehuutnuirdrnneslrtiiivaggelhhltrtestsdorneeelllaaeatsmteebdedenttetoosnttahhrceeeddkoeenlloimivvweepnrre,edildcfcuelseqleteommutmeeinenerttes.a.dncIIcnnesapacitdcatdeniipctotieoannnocftteoothtiteshhededeeplievnedreendt n`puurppeooscnnedinanisnsatgalllcllhoaaltanoisdonbina,t,ieooornntrscii,ofniemisqnptulsoatielaptllmelnaadtet.iinootFnnroeisrvsepeesrnsseusnpeeasniiitdsaiasnllrottvtooirttehhceeocrffduouennncdcattuiicoonsnntai,alllisittthayyleeooisfnfsrthhteaeevleeleqanqutuiuioeipnp1mmheraneesntctb.o.egIIennnnisstztcaaeolldllmaaottpniioloenntserrdeuveiefinveutqeeulsiipnaanrmreebueannnesootittascrreocececvoporrrtdadtneehcddeuutinensrtimidleopfentdheent acicnsoosnnctttaarrlmaalacecttd,,io,unlnahnleedassssnhbohieisersttenoovrrcieiconcamualelpeeilvsveirtieddedeecn.nocFcgeenoiriiznpednrdiecpduaatnieidistcstthehhaerevccitncooeseettcsoiaanrrnteeraiiocnftccstu,herseraedldceosoennrneovsbteheneerurremth.hiasanOnrenaacoossgtcrcnaiaiizsgeihgodtn-ol,iihnnnaeegarbbseaatesrsasmisi.eg.nhLtLtsi-cliiweninelsclebcfafoesecnietsnraroieevnvvseeemrnnietuluheeeesitstsoenrrremeecsc,oooggofnnrtiih3zzeeeMdd rWwaiseilvlelleaornreungceeondugi,pnazoinznedecnrroeomvpreleneevuteeinbobvuanaessoeiesfedd8roseonucnbonppsgrtrnooapipnzuotoeridrttviiuoeeonnnmatiaillllktpphseeterroffnioonsrr,cmmeapantncicooeie.n.porFFfoooptrrhoterhhteleiisocsenenaa1sgceroeetseetrmemse.nnmOtsen,aeanonddcdncdadetsteopipoedennsen,dediain,gcngrogemeoopmnnaerttnhehtedssswwppieietclclhiifcfitiochcnses,t,at33iinMMmmmamatilaeyeoysrtfeorecncooeogslgn, nioizcrzoee3sMts tobe ncursd. revenue upon completion of a substantive milestone, or in proportion to costs incurred to date compared with the estimate of total costs to be incurred. CoAAccmccpoouaunnnttyss rrmeaceeiitvcaanbelseaaialnnldvdoawalaallnloocbwweasanlfnccoeeess:b:TdTrrdaaeddbessa,ccccoaousutnstdsirsreccoeuenivctsa,bepleraioaderveurcreateccroobertrdudlreenddseaaattntdthhveeairinnivvooouisiccaeeddtseammrooufunmntst .aannTddhddeooannlootblbeeaaorr niwnfetoesrrrdesons,ut.bcTTtfhhsueel aaCancctcociomocuiupnpnatatnsstyeaadmnnsddalpieprnsrotoaddriuneucstcuttarrlrnlet.otuwuTmrahnsnescCiiesosbbmafaospseraedbdnoayodnnddettethhbeetrsbbm,eictsnateeseshsttdhiemisacaaotleulonooftwfstat,hhnpecraeoamsdmbououscuntentrdetotooufnfrpnprhsrioosabbtnaoadrbbillvceeaaclrcrwiroereduidistiteto-oltoohssfesfresesitxepiinnmeresii.xesinTtscihteinenggbaalyalcocciwcoouanunnntcdtsesrfarueoenccrdsiedivrovateuabgbblirtloefenuyaanllndd heaecancovotinencooiapmmnaiyitccesdddaastatiaalaeasngnrddetnhhuiifrssntitFsoobr.riaiTfcclahaallenisscCaleloecsemshsrepraeeattnuuncyrrrnsedsdt.e.iTtTtehrheemexipCCnooeossmmuprtpheaeanenaylylalrroteeewvvdaiienoewcwiessstthhcbeeuaassaetlldoloomowwenraashnn.iccsetoffrooirrcdadolouwbutbrfittfueul-loaafccfcceooxuupnnettrssiemmnocoennttbhyyly.i.nTTdhhueestCCryoomamnppdaanrneyygiddooonceassl noott have any significant off-balance-sheet credit exposure related to its customers. AAmidlvdleorntvisiinne2ga0ar0nd9damtmnerdescrhSca4hin6ad8nindsmiisiingnlggl::iTTohnhees2se0ec0oc8so.tstssaarre cchhaarrggeedd 1to ooppeerraattiioonnssiinntthheeyyeeaarr iinnccuurrrreedd,,aannd ttoottaalleedd S$51122mimlillloionniinn 22001100,, 8$441144 million in 2009 and $468 million in 2008. si 51 TTableiooffCCloonntteeenst.s RRleiesnseeoaafrrtcchhhe, ddCeovenesloovlpimdeaetnetldaaSndoadtrrepeemlleatmnteetddeeoexfIxpnpencennostsmeeess.::TThRheeessseeearcocohss,dtsseaavrreelcchohapanmrgegenedtattoonodorpeaetrtaitoidonnesnxipntehnthseeeysyeteoaatrrailinneccduur$rrr1ee4dd3aa4nnbddialaleriesonshhonoww2nn01oo0nn, a5ss1ee.pp2a9ar3raattee ioblifinliseliconioenfntitihninef22iCc00a00od99nvsaaaonnlcndided$a11t.e.n4d4t00Sh44tbabitdiellelmliivooeennnltoiinnopmf22e0I0nn00ct88oo..mRfRenees.escRewaaerarsccnehhadraacninhddm,dpddeeevrvveoeelvlloooppppmmmreoeednnnutttcteaesxxnpapdenenrdnestsleaeesst,ie, dccooesvvxeeeprt,eiinnntsggoetbsbaalatesosditicasl9sceci1diee9n$nt1tmii.iff4ili3clc4iroeebnssieleilaairorc2cnh0hi1na0n,2d08t1a8nhd03teh,e8aa$mpp1ilp.l2illi9cica3oatntiioionnn e1o2x20fi00ss09ct9iieaannnngtddi3fS$iMc4855ap11drmvoimdalunillcclitieoossnnintiinnethm22ea00l00dl8.ey.vRdReeelleovlapaetmtleeoedpeneextxdpoppefaenntnseesenwestsappcrnroidismmtaisrma,irlpwiylrhyoiviicnenhcdclliupundrdcoeelduteuedcecchhtcnsnoiaitccnsaadllatsshudpepoifprerouetrssteppcsr,rouotvovritideadelededddbb$yy9p133r9eMMptmatrooielc,lcuioufsinstlteooi,nmmse2eerc0rsus1r0wwe,hha$oon8d3aa8raremiuunissliilsninoggin in patents; existing patents; and3M and smoratonof sired pes, products; internally developed patent amortization of acquired patents. costs, which include costs and fees incurred to prepare, file, secure and maintain Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ame 47/114 11775588..00004477 zane Migsohcivesadg GotOTIOOIOUSEHIAIO2O08T0_AHOSk hom 1/1I`I3nAn/t2mte0ore1unr8nantl-saulcssaepsisotoafftltwiwzaaerrdee:a:rTThhaeemCoCorortmmizppeahadtnntpyoyscv:aec//prawipwtiapwtla.islizeezeces.gsrdodoivfiri/rAetecrchctotheccievoodetstsot/sseosdoegffvammer/ndyaaetateaar/ri6ats6l,7s4agaee0nnn/0dedr0rsas0ele1rlr1vyvi0iic4ce6ea5s9uou1nsasls1tee0rdd0a7iin8gnt4ht5thh/eae1dd1e-2va0ee6slo0_spv1m1u0neekln.ethsotolmsfafninooteterhrmpneaarlsl-myussteesesomofafnwttwairactere.. eaAaqnnumddiroprauamttneiitonosnntacalal pbbcaiaatsaspiilsisiztiseasldmmaeoorarerseeaemrrseewoppirrrtteeihsszieeennndpttaraototviipveveeerrtoaofyfpt,tehhrleeiaonssdtoofofattfnwwdtaharrreeeeq'e'susituuopssme,see.nvAAtem.mnoouyuenantrtsss, ae reported 8 generally on a are reported as compoonfetnbtr machinery straight-line basis, unless another a component of either machinery andsystematic and equipment or capital leases within property, plant and equipment. orEEnnfvvuiitrruoornnemmreennaetla:lv: EEnenavvieinrreooxnnupmmeeenennstteasadll.eexRxpepseeennrddviiettsurrefesosrrreelllaaittliinniggetosoceslxaiistnteindggfoccooannndtdiitictiiioopnnassteccdaaruuessmeeddbbiyyatppiaaosnstcooopptetsriaatroieonnsestchtahaadttdedodooonnotat nccouonndttirrisbicubtoueuttn0eooccduubrarrseinest `cwowrohhfemeunnmtuithrhteeeymyreaepavrnrreetnopubr1e.oaslbbaaarlbneloeeefxaasnpntednorrseneeaa.dss.ooEnRnnaeabvslbieylryroveneesmsstetiifnmmotaraablbllilaece,b,piggelieentindneeisertrareulallrylastlnneoyfodlortltoactraeaprnittttihhacalainpnptatthheredccroooemmmtpjhpeladelteetitaciitoooicnonnotnrofticffbofussettaeessiatboraeiclirteyscssuottruuidddoeiinredebssfoouontttiruhatrnheeleuCanCpodeiomrimspactatpoinaouynnnysy'te'ssd basis pencrllrye commitment generally are capitalized and depreciated over herctmaedwel Ives. to a plan of action. Environmental expenditures for capital projects capitalized and depreciated over their estimated useful lives. that contribute to current or future operations inIInncccooommmeeetttaaaxxseeesss::rTeThphreeepspreronovtvitishsiieooxnnfpfooerrciitnndccofoumtreurtaeaxxteeassxiicssoddneestteeeqrrummeiinnnceeeddsuousfsiinnteggmttphhoersaaersystetdaiafndfderlHeiaanbcieillsibtyeatapwppepreroonsatcchhhe.. cUUanrdneirntighdasismaaoppeuepnortossracachhn,,dddaeefeebmrraeesdds of arianessacsleotitmzsaebnaintldadixtlyeibsaebxiriielslpittrsieee.ssA.e.sTnThtohtefehDCeeCoceomxemppmapebacnentyeyrder3fecu1c,toou2rnrd0es1t0aavxavancaldoluunaa2tst0eii0oqo9nnu,aealnhllcleooewwsCaaoonnfmcctpeeeatmtonopyrroeerrddaeuurccycoeerddiitftesfsded$dre1eenf2eec8rerrsemedbitlettalxwxoneasesantsnestdthse2wwch3haeermrnyiiulncngoecre,atrmtaraioeinsunptnteyytcrstreieagvgnaeadlrryddt,iaionxnfggbtvahtahseleiiusirarotifon aaranelllaldoloiwjwzuaaadnnbgcciemleisets.yn.TtTeshxheieisnCttCsoh.omeAmpsspapoalnnfcyyDaftfeooiclleollomnowwbossefcrsaoc3cmc1oop,uu2ltn0eit1ixnn0ggaaggnruudeiid2gdu0aalnn0acc9tee,itrorheenellsaaCitteneoddmmttopo auaanccyccoloruuencnttotoiirnndfggteffdfouor$arru1du2nind8ccceiemroretiniallsaiinoi(tnnryietafiynnerdiintn$occ2oNo3mmameetitalealxfixoeeonss,at0droedsrirpeteeccicoootrrniddvaeluclneyircn, fteooarrftiamvniaanttltiiuioeeansst)i.on and judgments in the application of complex tax regulations in a multitude ofjurisdictions (refer to Note 8 for additional information). EEatarrabnuintmagbsiplpeeenrrtsoshg3haaMrrsee:c: oTTmhhmeeoddniifffsfehrrreecnnhccoeeliidnnertthsheeiswweheieigghhrteteesuddltsavvoeferrtaahggee d33iMMlatssohhinarrseessssoooucuittssstttaeandnddwiiinntggh fftCoohrroccmaalplccauullnaattyiin'nggsbbsaaossciiccksanbnaddsdeuidlcueotedmdpeceanrsanaintmgisoipnpepenrlrassgnhhsaas.rree CtaCehtretetrritacbaoiuimnntpaooubpptlteatiitotooinnoss3nocMofustcdsoitaalmunntmdeiddonengiasuumhnnniadndreggeerrhtothhlpedeesseeersssshotiasotrcctkhkre-bbbraaestsseeuaddltccbooofmimtphpeoeennsd3saialtMutiitooiconnnpoplalamasnnssmoscddiasaurtriheinndgagwtrthihtceehyhyteheoaearelrCssc2do20am0e110ps0,a,nt22yh00'es00y99swtoonaucndkdl-d22b00ao0s0te88dhwwcaeeovrrmeeenphnoeaotndtsindantcciiollundvdepeldedaniinsn. cetehffufefeesccctost m((e22pd66.u.33itanmmtNiioiollntllieooonnf10daa,ivvltueehrrteeaadggceeoenaoodrppnittiiiinooognnnssssfpffooeorrrr22sc0h0o1a1n0r0v,ee, ra55st44ti.r.o33ibnmumriteailllbllailtooeenndtoaaovv3teeMhrraeagcCgeoomoompppmttaiiooonnnnysss'hffsaooCrrroe22nh0v0o0el9dr9,et,ri44s1b.10lb.e0emciNmalouiltlsileeisootnhnhaeaavyvveeenwrreaaovggueeeldroobpnptoteiitoonhnnassmvffeeootrr.h22aI0d0f00ta88h)ed).c.iloAAunstsdivietions fadfoobiisrlcccioutonsynvstveeoderrssisieniootNnneaorattreeheim1me0dte,e,tbt,ht33esMMccoummnradkaiyyyticocihnhncosoaoofssosheer.c1tooApncpaevaayeydrsinininocgcnalasrysehh,alaatntnhdedrd//eootorrwcatcohosemnmmComoonommnpspstatocnoccykk'os;;nChHdooowwnievevevderertri,c,baliefmtNiihnisosgtaesosccechcruausrvs,eh,ttnhoheevaeCCtroobbmmueptpeanaarnbymyleeahts.atstoIfhtIhtehMeeincnceootennmntdmtiaoatinnonddns Sabhailrithyotlodesent.tlTehthecisomdpebuttasetciuornitsfyoinbcaassihc. A2ncdcodrdlintgelyd,cthaemreiwnpagsrsnoshimarpafcot ohneydeilaurtesdeneadrendinDgsepceermshbae3rer1afttorlilbouwt:able to 3M common shareholders. The computations for basic and diluted earnings per share for the years ended December 31 follow: Earaings Per ShareComputations Earnings Per Share Computations Rumersior (Amounts in millions~ except per share -- amounts) NDe`unNNmoeemettirninantacoctooro:mmre:eatarttirbibuuttaabblleettoo 33MM DDeDDnioelemntoinomnaniotnoaarsmt:sooircffionoarrtwaewedietwgiighoththteretdhdeaavvCeerraaggoee 33MmM ccsooopmmcmmkoabonansssenhhdaacrreoeyssmpooeunu'tssstaatntisdoainnng--l-da-bisbanassigicc EamDDiDneilenguotsnimopneionraamstsoshoirafcrfoinoearrtwaaewedbietwugighaiohtthbtereltddheeaavvtCeoeorr3aamggMpeeca33onMMym'smccsoootmonmcmmhkoa-obnrnacssshhheladadrrceeesosrmsooup--utesbntsasanasttdiiioancngn--p-ld-anddisiillnuuttegedd Eamingsper Earnings per Earnings per shareshare share abusble attributable attributable toto to 3Mcommonshareholders 3M common shareholders 3M common shareholders ---- -- died basic diluted amo2010 sams $ 4,1185 $ 5 7311317.37 a7752m1515..58 5 S$$s ses 5.72 $ 5.63 $ uo so 2009 2008 33,19933s$ a 3,460 005 92 700.5 62 50 6.2 067 73 706.7 aw 5am 4.56 $ anos 4m 4.52 $ 699.2 8.0 707.2 4.95 4.89 252 `TTiabblleeooffCCooentnensts: S(SttGooEccSkkbP-bPaa)sseeaddncdcootmmhpeeLpneosnnastgaitTioonen::mTThhIeenCcCeonomtmipvpeaaPnnlyyarnree(ccoLogTginPzi)ze.essUcncodomempreapnpespnalstiaictioaonbnleeexaxpcpeceonnusnseetiffnoogrbbosotathhnidittassGrGedne,nehrereaafliEErmmpaplhlooyiyeeoeesfs''ShStatoroc-ckbkPaPusutercdchchaoasmseepPePlnlasaanntion ics(isGodmdEepetSeteePnrrPsmma)itiannineeodddnatavthtetesthhtLsee.oggnRrrgaae-nnTfttededrtamarotteNIanoacnteedntt1thhi6veeferoraeePcdcloaodgngniint(tLioitiTononIanPol)of.fiUtnhhnfeeodrrermeeralltaaaipttoependl.eicexaxpbpelenensaseeccisosurrneecctioonrrgddeesddtaonovdveaerrrdttshh,eepthpeeerrifiaooiddrivinnawlwuhehiicocfhhtsthhhaersesa-hbraaresebe-abdascseoemdd pensation compensation vests. Refer to Note 16 for additional information. Comprehensive pCroemsepnrteehdenntsihvee income: Total Cionncosomlei:dTatoetadl cScoommapprrteehhemennssoeiifvvCeenhiianntnccgooesmmseeaiannnEddqtuthhietyccaonmodpComonmepnprtseoohofefannacscciueuvmmearulIlnaacsteoedmdeto.hthAeecrcccuoommmupplrraeeebhdeennotsshiiveve ciinoncmcopomrmeeeb1(el0no5ssssi))vaaerree indpinecrcefooisemnmeneedteb((dle0onissnes))tihisespcCceooonmmnpsspoooislasieoednddadntooefdpfffSorotraeetiesgmncetcnuutrrstreeonniflccaCyynrhttraraanarndngsjseltlnasatatiicineooonEntqnseeuff,ffietueyccnttrassena((dilnciCczlloeuidmdngipnirggeeshhheaenednsgiddvelseogooIsfnsefcecnossetmtoniein.nsvvAeescstctvmmuemenntuatsslfaoiitnenrldsinnafotertbhrnnedaraettclitiooanmnnaadplelrcceoouhmme-tpnpyasarivnieise)s),, Secaundurnreeali,zed gain nd oss on cash low hedging instrament. defined benefit pension and postretirement plan adjustments, unrealized gains securities, and unrealized gains and losses on cash flow hedging instruments. and losses on available-for-sale debt and equity thDDeerbeiavlaratinvcieessaavhnneddathheaedttdfggiiininggvavaactlciteeivv.iTittseihess:e:CAAollmllpddaeernriiyvvaattsiiveveesiiinnnssttterrrueumsmteeannttesswswiwtiathhpiisnn,tthchuesrcseconopcpyeeaoofnfAdAScSCoCm8m81o15d5,,iDDtyeeprririvcaietisvvweasapaasnnt,ddaHiHneddevgdfigeonirngseg,i,gaanreceurrereccnoocrrddyeedd oonn vftfhooerowblaartrlad.anwacnnAedadlsoohprhpeteteiiddtoogannitnccfgoaoiinnrntirvtararcaltmucseett.a0osTtmmshaeantnahCaagogemeqrpriuiassnakkysslgugefsneoeenrrseahrilanelltdyleygraeeassssatsocroccaciotieauatntseetwddianwwpgisaidt,trhhcueffoorrrrseeeniiggcinny eeagxxnccdanhhcaanonnadmggeeftmfrreoatectdeeii,,tvdynienipatrresiercesehstetsdarwgaetaeesp,asa,nnnaddsnccdcoofcmmomormeoriodgddinitatcyynuwmkrcirteaeehrntkcUe.ySt. encrlly volatility. generally acceptedaccountingprinciple. Iteunderlying edged transaction ceases 0 All hedging instruments that qualify for hedge accounting are designated and accepted accounting principles. If the underlying hedged transaction ceases to xi,al effective exist, all changes ifirvalue oftherelated as hedges, in accordance with U.S. changes in fair value of the related Pigs eihcesodg Go ADOIOS0IOOTASA-2060_1Ok https:llwww.sec.govlArchivesledgarldata16674010001104659110078451a 11-2060_110k.htm ne 48/114 11775588..00004488 zane Migsohcivesadg GotOTIOOIOUSEHIAIO2O08T0_AHOSk Hom 1/1dmd3eae/r2rrii0kvv1aea8tdtiivtvoeesmsatthrhaakttehhtaavvwieemtnhootcthbbaeenegenesssteethetlttespddsa:oa//rrwegwrrweeni.ccsnooeiggcc.nnguiziomzzveeed/ddAnriicnnchcaicvumueirsrnrr/geeesndn.tgtcaeCria/dirnanatiagn/fg6.l6so.7w4IIsn0n/ss0ftt0rrru0oum1mm1ee0dnne4trt6ssi5hvt9aha1tat1it0vdd0e7ooi8nnn4oo5s/ttaqqr1uu1uaa-lm2lii0eft6ynya0t_ffeos1r1rhc0hlkeea.hddstsggmieefaiaeccdccioonuutnntetinnsggaaartrceeen romoefflacacrataksiseohhdnffstllohooiwmwps.saTiriknnheettthChweeosismtaahpmmcaeehncacyanatdgteeoeggseoorsrryenycoaoastsghnttohhizelecedcdaoasrisnhiscffsullourorewwedssenrtfrireovoaammrtntiitvnheegesie.nteamCmnsacssishasulufblbnjojetwecrcstta(ftmro0oedmdenestsidsigegfnrnioavarttareetidddvhhieeeniddngggspeetrouuormrpuuoensnndedtseseassanirigedgnncalttaeesodds(it(feeicecodopnnaioornmtmtiyhicec0))hshlteaevdtdeeggmreeaegnted ndrdeeterlroaiivtvsiaoattnihivsvehaesis.opr.sfHH.e3ooTswhweeecvCveoorem,mtrmthhpo,eeannCCsyootdmomocppekaasn(nnyyoetddeohoeoreoslhdhNaoaovvrteeiecscso1oun0neitdinneggtrehieivnnsalttdliyyovccecouonmfnvienevnaresntr)itc.ibiballleedindesetbbrtuhtmhaettn,tisiffcfoconordntidratitdiiioonnngssfpfurorrcpcooonsnveveserarsnsiidoonnisaanrroetmmaeetpt,a, riitscyocntoovnelverevtreitirbballgeeed into shares of 3M common stock (refer to Note 10 in this document). arFFaeaiirrmvevaaalsluuuermemedaeaassufurrioemmveaenlnsut:se:o33nMMarffeoclluloorwwrissngAAbSSeCCss$822a0,n, dFFaaniiorrvVVaelaculuuere iMMneebaassauirses.mUeunndtrsearaentnddhmDDissietscaclnnlodosasrutudrr,eessfs,,irwwivittahhlurseepsepiecdctetfti0onseaedsstaesststahaneneddxilaitabpiiliitceie,sottthahatte {haaarmmeeoommuuenneatatststuhuharrateetwdmwoeaontuutflddaduibrbeeve.arrTleuheceeecoisvneteadaintrtvdooeascersuleddrallrllisnaagnncbsassaissaeisebtoloairnpsdptahanisioddntthrooietectrrruaaarnnrrsiscfnfheegyrrbfaarsHliiiaasnb.pliUulitinstlydueiinnsratdahnnieonosrrmtddaeenearrdsllayuyrrdtrir,aannfngassfiacrctivtiaivoolunnaelbbuieesttwdtwheeeafeet'mnnmmaemadxraiarkmskietezhtpeepasraetrtxithiictceipippuraasincneteots,sfo4ar5stoohFfe Obtohbsbeseseermrrvvevaaaabbsblulleereeipminnopeptuunttstssdaaaannrtedde.mimTniiphnnueiitmmssitimazzaneersdskatterhhdteepuaualssrseotiooecfisftpunaacnbnboltissbswcsheorervsuvalaabdbhlliseeereiiannrpipcnuuvhttaysslbbufyoiyrrnrgieentqphuuieitrsinanusgsseeththdotairtnttahhmeebmemaoissoulstrtindoogebbvssfeeearlrirvvoapavbbealdllbeeuaeinnstppheuadttosmnbbaeewmxuaiemsrekdidzewetwdshhtteheanenouaabvsvteaaaiioialabnfbleelde,. fmOfrraobormsmekrsesvoopauuabrrrlcceeecssipnaiipnnnuddtteessppaweernnoeddueienlnnpdttuoostfsfetmthihneearCCvkaoeolmtmuppipaananrgtnyiytc.h.ipeUUaannnosotbsbtswseerorvvuaalbdbblilueelsieiitnnyippnudutvtesalravureieeniiglnnptpohuubepttassaeshtshdstaeuttrproeeorfflnlleiecatcbhttietlhhbieteeyCsCdtoeomivmpnefaploonarpynmey'adt'ssiboaaanssssseauudvmmapoiptlntaiibmoolnnaessrikanaebtbtohodueuatthtaheeobffataaccittnooerrdss idmcrieraccrucukmmaesttlspatasnancretecisect.sip.ToaThnrhteesbHwhiiioeelruraaledrrcc.uhhsyyeLiiesivnbbervlrooak2klueeiinnnndgpdouothwtweninnanicsntlstueoodt ehtohrqreuelioeatblleeiedlvvietepyllsis.d.ceLLsveeefvvoleoellpse11idiilnnbppaauusttesssdaairuretepsoqqnuouorotthtseeeddibplpeiirsitcciesnsfo((iurnumnnsaaaedtidijovusensetdemadav)r)akiiilennatabsacl,cettiqiivvuneomtthmaeerdapkrrektiestcsefsooror r iaiidddeseennntsttiiiccctaaalllloaaorbsrisslseiiitmtmsyi,iollarierltaiaaesbsrsideleiittsrioeeorscr.tHllLiyiaebbvoiielillitii2nedssiinriiepnncumtmtlasyar:irnkLkceeelvttusedltheh3taqtuaianoerpteuetdonsoptatrrsiacccetutsvinveofe,ob,rsnaesnridmdvaiiibnlnalppreuuattissnsop(eoutbtsthesoerfrrrtltihhataabhnneiliqqatuuiseoossttteeiodndrpparbcriitcciveieses))m.thhaaartCktaewattreeseg,oooqrbbuissozeeatrretvvdiaaobpbnlrleieicfefioosrrnfttohhrteehe Valuation hierarchy is based upon asset or liability, either directly or valuation hierarchy is based upon the lowest indirectly. the lowest vel of inputthats significant fo thefi vale measurement. Level 3 inputs are unobservable inputs for the asset or liability. level of input that is significant to the fair value measurement. Categorization within the reAAqecuqqiuursieissitttoionhnss:a:cTTuhhieeiCnCogommepnpatainntyyy aianccccoobuuunnstissnffbeoosursscboiumnsbieninessasstiaaoccqnquuiiossiittriieoocnnossgininnizaaeccccaoolrrd(deaannndcceenlwwiyitt)hhtAAhSSaCCss880e055s,s, cBuuusisiireneesdsssaCCnodommbsibinianltaittoiosnns.sa.sTTshhuiimssessdtuannntddaharerdd rartrbeaauqnnsussiaiarcnectestisiootshnnecnaoanmdcbdqiiuensairttbiainbogllni.seshnCethisttrytshhaiennaaacpbqrcuuosvisiiinisteiiosossnns-cidooafmtoetbiifisannriarstvi-vtoaaanlnlduudteaoesraardsespctttrohhegesncmmriezieaebaessa,uuallrrmee(aommnneednnotttonobhlbyjeje)recttcthtiieivveaensffasooegrthsl,aeallcdaaqsueseierstestdsaaecenqdrurielrimeaodbsiifalnsintcniddeqsluaiisaasbbstsiiilutiimtoaineeso-sddsatnisunesumtihmeeedd iinn aVvacqaabulluuiisesioinotfefiscocsnoocnoneslmiidabedtirenradatraiteoitsontnpirp.uioaCcindtdeurriitnnianiangbbcpuuorssotiivsnnieesrssiosonccmsooammocbfqbiutinhinasiastittiisiootoannnn((dainnaccrccddoluuipdnnritegnisgnccgrcoi.obm3nei,tnMiangmgedenpopntnltgicccooosnntshhsiieiddsreetrshrataitantiingoodsnna,))rtdhsannetdodbduttehhsteeeirneemexxicscnhslauuctsosiiiomoonbnnioonoffafattacrinaqonsunsaissaacictnttioiodonnn-adiadannutddesifmaeirnts `otwaoecarqaneunaaisaccicqctiquoouiunirnr-etereddeldaeeftnneottdiritturyye'n'sssdtddreueercfeaetufrrrroeierndtgmteaxcxrosssattssatsnfeadrtoanamrndddwahclsiiqaicublhiisl,tiittayiyombbnoaalnalacagncnococteuehsnsoetoicncacgcsu.uprer3rciMitnnsggaarpafpfeetlerirerDsDeetehcciesetmrmsabtnbaesnearrdcta33ir11od,,nt22ao00n0b0d8u8.s.seiPPnqrreueesi--s2s2c0i0o0t0m9o9bnbubiesunisaaintnieeodssnsrscecoasomntmbrdiubacnidtanujtauritsiiootnnmgnssecnottss were accounted for under a former standard which, among other aspects, required transaction and acquisition-related restructuring costs oacqbuisiintcilounddeadtn.the acquisitionpurchaseaccounting nddid ot requirethe recogation ofcertaincontingent considerations ofthe to be included in the acquisition purchase accounting and did not require the recognition of certain contingent consideration as ofthe acquisition date. NNeeww AAccccoouuanttiinogg PPrroonnoouunncceemmeennttss aIIcncNNoouovnveteirmnigbbceeorrn2s20i00d08e8,r,atthhieoenFFsii.nnaaTnnhcceiiasaltlaAAncdccacrooduunnittniindngigsctSSsttaa,nnaddmaaorrddnssgBoBotoshaerrrddt((hFFiAnAgSSsBB,))raraatttiiffriiaeedndsaacsstttiaaonnnddaacrroddsrteelloaartteeaddnttooicnceverertstaatiimnneneetqquusiihttoyyummldebettehhooiddncinnlvvuedesesitdmmieennntt thttahhceeeccoicounosvnstettsoiontfogftrt'hchseoeocnweqsnqiudeuierittrsyyah--timimopenettsphh.eoorTddchieiennnvtsveateasgsntetsdmmhaeeronndtut(li(nadadnbniddceanntoeotst,eeaxxmppeeonnnssgeeddo))thaaennrddtshshihnaargrese,stshsuuabbtsstereqaqunuesneatnclttlyiyonisscusuoeesdtdsbbfyyotrthhaeneceiqnqvuueiytsy-tm-mmeeenttthhsohddouiinnldvveebssetteieentcthhlauatdt rereedddiuunccee the investor's ownership percentage should be a53 `TTiabblleeooffCCoomnteensts: 3aacWcc,cotouhunetnsettdaffnoodrararasdwiffattshheeefiifnnevvcetesistvtooerfr ohhraddtrssaoonlsddacatppirrooonppsooorcrttciiouornnaiatnteeg sshhafaatrreee ooDf fecitssemiinbnvveeerssti3mm1ee,nn2tt0,,0ww8t.ithThhggeaaiandospoiotrrilolnonossoessesfs trrheeiccsoosrrtddaeendddatthrhdrooduuiggdhhnectaarhmnaiinvggses..a FFoorr "matrisl 3M, the material impact on Psconsolidated estsof operations o financial condition. standard was effective for transactions occurring after December 31, 2008. impact on 3M's consolidated results of operations or financial condition. The adoption of this standard did not have a aIIncqNNuiosvioteimonbtvehra22t0e0a00n88,r,enhthteieitFyFAAdbSSoEBerenreoasitifrfneieded aadnn c1a0ccucosouunontitinniggnsstttaaennndddaasrrddhorrelelldaa1tpteeddrttooeninvatanengghinieblrltees sarsesoesmts aaacbcqqauuiiiirreneddgiianncabcbuesusissinneedssessfceconomsmbiivbneianitanittioaonnngoiorbrlaeassassseetet.). UnsUadcneqedulreirstitihthieeoensbsattaahnsnaddtaaaorrnnddet3andhtedeifetpyefeendrnsoiiseoivvsdeeonivionnettrtainngwtgheiiinbbcdlehestoahssuesssetestnnoieerteeiddndsstietmtnooidbnbseiestaohcaecchscoooulndunntvtoteaedlpdferfe.rovrFeoianrst ao3Mtssh,eeepprtaashrrafasrttoteeumaunnndioiabtrotoafdfiawnaacicnsocgoufuanecnctctitensigsvse(anandfddwrewofterounaulsnldisdvabebceetisinaostsanisnsigggenincbeetldedriaansgse.t). aauaffssteeetfrruDalDcleeiqcfceeimbesaibmsoeebrnd3e3s1ot1r,nh, a22tth000ec08l8p.o.esTTreihdhoaeedCfCooevomrempDr eapwacnhneyiymcchbocnoetshnriesd3i1dae,sers2reee0dtd0d8thih.imissinssittsaahnneddsaarridnd inva in termsof ntl ssetssuid in busines combinatioonsr lue. For 3M, the standard was effective for transactions occurring terms of intangible assets acquired in business combinations or asset acquisitions that closed after December 31, 2008. IInnbAAiplpritriiyll2w20h0e00n9,t,dthheevFFlAAuSSmEBiesisassnuudeeddlttvhherreoeeafcaacccooucunnttiiinfnoggssttvtaahnndadiasarsrddesystwowhrihsicbchihl((1t1))ypphrroovvvieiddesegiguguiniddfaancncaceneyaonndeeecsslitiimmnaetaditiannnggtdthhiedefefnlatriirfvyvlianulguteeraoonffsaaancntaaisossneesttoohrrat are omnliooatdtbeioallrridtdfyeeorrwrlyysh,,ue(c(n22h))stmhmeeoocdvdiuoiflfruyyemtt,heeeaarnrneeddqquul(e3iirv)reee6mlmdeoennftatassdcdtffiiootvtriitorryeneaccflooodggrinntsihiczzeliinoansggsusooreetthrboeerrqe-lutiiharrbaenil-m-itteeyntmthsphavoweraiatsrhniiglyrni-eiismfmpipecepacaaimtnirtrtlepeoyfddodiddeerecrbbvltitanassleeeucdicueuramilrneittdaiiyeesissdueraanenntmddifecycnhhitnaasgnnggiterenactntlhhsueeadcimitmnipgopdeniaissirmctmhleaoentsntuatrrees moidnetlerfiomr pseurcihodsse.cuFroirtie3sM,,antdhe(s3e)staadnddaardddsitwioenraelfdkisecilovsuerbeegreiqnuniirenmg eAnptsewi1t,h2r0e0s9p,eTchtetoCfaoimrpvaalnuye dmisecalsousreesmthenatdsdiintcloundailngredqiusicrloesdures in interim periods. For 3M, these standards were effective beginning April 1, 2009. The Company discloses the additional required Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ne 49/114 11775588..00004499 zane Migs heeOTdIOOIOUSEHIOOTASAI12080_HOk om 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm information. The ther aspects of tcsestandards didnot hve material impacton IMT consolidated reofsopeuratisons or nancial information. The other aspects of these standards did not have a material impact on 3M's consolidated results of operations or fmancial condion. condition. oI1n0nJJtuannree a2200n090os,f9thfh,eeneaFFnArcAiSSasBlB iaissssssueuteesddoa,mnmewwosntstaganndtdaharerddrtrrieegngagarrsdd,iinnlggittmhhieenaatcecoctuhenctqiunaglofifoofyruitnargannsnspfeeetcrisaoolif-fpffumnnrapanonisgceaialnlaiastssseyetctssoanammceeenpnd,diiinnnggcthlhueedeeaxxnsiseitiwnnuggnggiuutiiddoaafnnccee eaoaccnrccteooruaucnnnotstgfddeenerfsfiiinnotiifottifionionnncahtrnhcaiaiftaeomlmrraaauissssttrebbtaesentsomme,eeratmoffooborrnettgarraaconntcsshffoeeerrrussthnooiftnfpgpofsoro,rtretaiilsooimnnsssioanoaflfte,fniantahnaecnnicqairualaluslaiefseystiensstsigtgtspoopibfbeeiceciaaeelnll-iitgpgaiiubdbrlldpeeiotffsooeonreassnlaatlliedetiyaasccccclcoooonsuucunnertetpii.tnn,gFgi,o,nrcclll3uaMrdi,efayatahaninnserddwcschahuananyndniagtgreoedftthhee `Fwdwieaanrssaenececoffifgacelnctiattviivoeensffocorrtintshneeerawiwdatotftrproaatrnn,isasoffneterrarsosnfosoffhfeifrfisitnnsoaananbcceiniaaaldlcsacaeosdrstuiednsdttsebnbdeoegfgioainrnvnnaiesinnaggsmJJaaaaletnv,euaraarinryy]d11,re,p2q2a0u01ci10rt0e.o.BsnBiegec3ncaMiafusuiscsceaeon33nt MsaMdldddoiiocdtiesaosntnoaeoltthrdhiasavcveleeosssouiifgsgrnenoi.piffFeitirccoaaartnnit3stoMtntrrsa,anntoshrsfiffeserarsssntaoconfifdaalrd condion. financial assets, condition. the adoption of this standard did not have a material impact on 3M's consolidated results of operations or financial iI1n0 JJnuanneect22h00le0f90m,u9ithhn,eedaFFtAoeAnSSBosifstushueeeddexaeinmewpwtsisottnaafnondradrqdautatrhhlaidatftyrrieenvvigisssepesescttihhaeelccpoounnrsspoololisiddeaanttiiotonniggtiuiddiiapnsnccw,ee ffpooprvrvaoarsriicaabhbllefeo-nrindeteentreetsrtmeiennnitintsgie,ws.hTTohhseehmmoouodliddfifiiccaattiioonnss cFicnooocrnnlssu3oodWllei,idtdahhateietseealsivvtmaaarrniinidaaaabbtrlildoeew-niinanottsefertrfehefsestetecnexinievttmietyy,pJ,ataainomnndadrcfcoyhrha1,qn2aug0ae1nlsi0fftyo.goiwnwTehghheessenpnaediictoiapissltinpnouenecropefoscsstaeehryei1snts0totsitrarieeenaasads,sarssareedynssdsseiwwwdnhhaoooptpssrhhhoaooauvuclelhddafmccoooarnntdsseeootlileiidrlmdataiientaeiamnvvgaparwrioiahaanbboIllceesMh-iitosnnutelecdroetnsstoeelnintdita.yt.ed rFeosr u3sMo,fthoipsersatatnidonasrdorwfasraefnfcecaticvoendJiatniuona.ry 1, 2010. The adoption of this standard did not have a material impact on 3M's consolidated results of operations or financial condition. pIrInnovAAiuudggeuusssttd2d20i00i09o9,n,atthlheegFFuAiAdSSaBEnciiesosssunueeddhAAoccwcoccuonoutmniptniagnrgSeStsatasnndhdaoarlrdddssmUUpedpadatatese ((iAAsSSUUb))iNNolo.a.t220if0009si9-1-v05a5,l,uMMeeauesnaudserurirniAnggSLCLiia8ab2b0ill.iiteTieshseaaAtFFSaUrirclIaaZrlailufui,ee,swwthhhiaitcchhthe qapqnruuoooivtdteiedednetppsirrcaiaicdlceldifoatoiriorantananyliigddwueehnindettianiccnaactllelliorbanbilihaaltoi5tywyadsnschaheooosmuuedpldd,anbbqieeeusouustsseeehddd.o.purHHlidocoemwwseeevfvaoeserurr,rsieifsfllusiaurcbchihlibtiiinneiffsotorarmetmafasattiiioroornvnsaiiilssumnneilotuatnraadvvbeaarliiliAablbSlleCei,, 8aa2teer0tna.ditTiettdhyyaemmsAaaaSyysUsuuessscee,lattohrhireefiqaeqnsuutotehhteeaddrtptprhrieicceeooff rfVvaanallluiudaatetinitoothninctatieelmcclhphiananbiciqqitluuoiteeyf(c(wsosunuhtccerhhnaacatrtsatutdhaheleedmrmeaasrsatkriakecnetttaooosnssreiitnn,hccqooaummoepteaerpdaeppvprpreorinaoccteahscs)hf.r)o.arTTnshshimeeeAriAalSanSrUdUlaiianasbdlsiiolociiatniitendesdisicoccarattsieeimstrthihlaacatrttulthihaeembifaliasliitrniretvwvsahaaltliruuaceendoheocfdqfuaaaeoslltisaeaisdbstierlitytscy,iossisrnfnaooonrttoaatanhddesjerutnstetedcdtatool aarldieafbelbeislcittcyithrooerriliqqmpuuopiotoftatileceedttdovpopernfrliyiccceo|enmffteoorsarrscaautnnuraedildnerenenntsctstir)aci.aclltlilFosioanirbsii3tlthiMytay,trttprhuarieddsveAdednSaatUsitnaswntaarasassnssfsetfftmemrcaaiaynybvdbeieOncdcctoioocnnbasietierddsee1cr,reir2ddc0ul0eem9vv,eseltTlahn11ecffeaaisidroivvnpaatwliluohuenicmmohfeeqatuassuosrteeAudmSpreUrnietcdseim(ssdsecfeooeentNrNoathtonasteievdee11.n33tiffcooarrl material impact a description of material impact on Ns consolidated essof operations a insncil condition. level 1 measurements). For 3M, this ASU was effective October 1,2009. on 3M's consolidated results of operations or financial condition. The adoption of this ASU did not have a iIInnsSSEeeqpputtieevmmablbeeenrr)22,00t00h99a,t, ttahhmeeeFFnAAdsSSBSASiissCssuu8ee2dd0AASSpUUroNNvoio.d. 22g0000u99a--1n122c,,eIvneovsentsmtmmeeenantstssuiirnniCChneeregrtftaaiiinnrEEvnantlittuiesosTfTchhrattaCCanalaclcululelaamttaeeNtNitevtAAisnssvseeetsttVImZeanlautespplseercrSuhShhasaerrehee((doogrre fIifutunnsnvdEedsssq,t,upmpirevriniavvtlaasettneemte)aeq,yquthuibaitettyyfadfumeuntnedednrssdmssiannnAedSdvvCesennit8tun2ur0grneetcoecaapspprsoittcva]itldfvfeuuannlgdduussei..d(TaTNhnhAceeeVAA)oSSnaUUsmiienpnardsdaiuiccrtaciinttcegaslttthhheaeaxttp,f,eauudinrnidevdenaertlru,cceelerortetfaaiicsnnecrcitiiarrsiccnuupmamrsltotsebtaraannnbcacleteseiv,st,ehtteihhneeivfnfeuvasieitrsmvtveamanellutnseteoswoufifcslshuubacceshhhseodldgaet LsisonoocvmmoeeesmtttmphiilnenenggttsotttmhhheearsrytthlbhaeanndNNertAAeeVqrVmu..iirIInennedttd.hhuoTossshieeenssgAittnSuaeatUttiiaoolsnsnsse,,tttrvhhqaeeluuppierreaa(cscNttiiaAccaaVdll)deeaxxosppeaenddpiiedreannictttsciccacaannllnnooeoxtstbpoubeeefrdutiueeshsnseeetd,aauainnndrldedbsidussisscictlloioosssfpuurrlroeeobioafvfbetlhheseettherreenmtiensavinewmisinttmghaieaancnctitttiihwooennnisslslcnbaeiepecceeosnesosfalsdagrryayt eitnosewwccgolugmoiuspdirdlaeeantncepcetre,h,eorrevsgaileaersdigsiloefrosesaqnhoouisfifsrwrweAhdehdS.teUTthhlheaeerrraeeAnanoScstUennaatspitltpsyoluuirsesceqaddubittlrhhe0eeesppaarnrdeaacdmctitpitiliccoaoanllyaeeelxxrdpp'ieessddcidliieoesnnsctutlrot1eos0summroeeesfaathsasuebrouaeutrtttthrheipebeufnfatsueiiirsovvonafalaunleadlooitfnfhvaaelennrsyytpomofuoefnitttsss wiiennivvtnehessitnttmmethebntneesntss.ec.foTTiphtheeepoafnthe Cadaosismssceptltaos..nsuy33rM'MespdbdreooonevesiefsniiosoottntpshalaavovnefseatsharninsyyvAsasiSigugUnneiifadfiribcceaaannnstotedtddaiiorprenpctNltiAciiannVbvvsleeessstttimomneeadnnnittscsetmwiepiditlhoniiynneNttrhoh'seetsedscicas1o1cp.pleoeFsoooufrfreAA3sSMSaU,UbohNNuioto.sp.2Ae20Sn09sU0-iw9o1-n21s,a2n,bcdbftufoettchccteeeirrrvttpeaaOoiincnsttpprloelabstinerreatms1s,ese2nt0st0obo9fef.tnthheTefeiht plan adoption ofthis ASU didnot have a Company's benefit plans are valued adoption of this ASU did not have a material based on material impact on 3M conorelsusiofdopertatieons or NAV as indicated in Note 11. For 3M, this ASU was impact on 3M's consolidated results of operations or financial effective financial condition. October 1, condition. 2009. The st 54 `TTiabblleeooffCCoomnteensts: EmIInenOrOcgtcitoonbbgeerr2s20u00e09s9,,TutthhseekFFFAAoSSrcBBe,iissssuauteeddprAAoSSviUUdeNNsoos..m22e00n00d99-m-11e33n,,tMMaoultltphiplecleer--iDDteeelrliiivvaeerrfaoarbbllseepRRaerevvaeetnniuuneeAcArorrnrsaainndgegereammteienontntssi---n--mauclcotoninspselenensdsuuessiovofeftrthhbeeleFFAASSBB. E{aarramrmnaaennrugggneeimdnmeegnertInsscts.siu.AeAsssisTanaasrgrkeessFUuSu.loltGtrcooAeffA,ttPhthhe.esasetTeapharmemoevAneinSdddmeUmsendaetomncstess,t,nmdmiumsulibeltpniylptselee-ts-dodteetlahlibievlveiecrsrraaihbtbiellnreeigarrseefvolveriennnsueugepepaarriarmrctaaiennnhgggieecrmmoaenernsncitthdsyefwwroiairltldiloebbnteeeisnsreemmpipaunarliartntiaepgtdleieti-dnnhdemsmleoiovlrrleeeirnaccgbiiprlrrecicucumerssotaanfnac.ceess detdhevelailinidvveeuenrrncaadbebilelerfe..eTvTxehinhsedetsioensrlge-llsliUipnn.gcSgi.pfprGiriicAccoeeAbujuPess.cedtTdihvffeeoorrAeecSvaaUccihhddddoeeeellisiinvsvtnheecrrioseaabbbllvyee ewwisailtlallbbbblleisahboriaslnscgeetdaeioosmnnealv,vleiendengdpreolrrii-scnspepgeehcpciirieffriiiacccrcooihbbjyjneeecfcfotthiirvvedeereevetevveriinmdddeienonncirneesgpifeftchaaievafaislcielalaolbibinljeege,cpttihririivcreedp-eopavfraitradtyeynce ocnevoriordttehhnniirrcsdde--ppiifwaarivrsttteyynhttdeivhodeirted-usennspnceecteceifiitiscoaaodvvbeaajtiieleacbrbtlimlveeie.nAAetvhvvieedepnenrdndicocoeerrwiwsilinllsloebbtleleavhrreaeeqiqluuadibierrlleeedid, votooerdredeasettbtoeiemlrrnemmaaitiennsdeieastinetssdllabibnleegostntpecerisbctatiemssiasf.tneToehoiftifhssseeeArllvlSlieinUnngdpaporlrriio-ccseepeleiincmiifainaimncmaatonaebnsnjneetechrrteittvhrheaeatsteiiivdssuidalence ummcsoeeinttnshhgioosddtheeonoftrfeawalllalilttoohiccvataehtstiialootnniunasaenngdddpwtwioiclidllelemreteeeqqrtmuuhiiorinedte,thhthwatehtripaacrrrihncagenalegtloemomcesaenetlnteltstchcaoeonnnsydisedidldeiirevsarcetaoritauoibnontlnebibeonentaaaellloslovtcoaeancrtdaeaaldtalloaeantrettrhhbaeeaniisgnniesccm.eeeppTntthtiioiospnnroAoofpSfotUtrhhteiaolaasnroraralaelnnlygigmeetommineaeancnttethst0otdhelaelllilrveddeseerilladiibvvuleeaerrlaabbleles:s mubausailssneidgdpltoohenn-eidiretsesllaeiretvailevarvetiavesbeeeleslrielnelivglinenpnggrupieprciaericrcmeme.a.enEtEhgxxoeppdmaa,ennawddtheegiddcudhididisasaclcllnloococsesauurtrereeesssaolosnffyqqduurileasfqlciauotitaurtinievvtdeeiaunannntdhddeeqrqotauhvaenenrstAaiSltalaUtat.irvvreaTnhiingnefefomoArrmSemnaUattdtiipooorcnnosprreoenggrotaatirroddaniipannllgglyyaapttpoopplerilacacaihtnciodagneotleoifivfmheotrheenaebnloetr `tmwrwhauhnilisctaichpctliieinno-dddnuuses.sltitrvrFyyeorssappb3eelcMcei,iffriieAccvSaaellnUlluooeNccoaaa.ttriioro2ann0n0aagn9ned-dmm1em3eanesstauegsrfuuicredetmamienevncneettbaggeruuegiiidadlaansnnioccneergecJeqxausniissurteas,dr, yssuuuncc1d,hhe2ra0st1lhl1oeo,nnA3ggS-MtUeerwr.mimTlclhcoeonneAscsSrtrUc1utcdtoaioondensaccopnononthttearapcapctprtslsyaaotnnoddvassroroiaffontwwfgsahearmrseieensottsannfodarsrd phtprrraaoonssvsppaeeeccctatitioivvnmeeasllt.yyetFrtoooinarnle3eiMwwm,pooaArrcmStmaUtaaenrtNeira3oilaM.lly2ly0cm0moo9nd-os1idof3ilifiiiesedddaetfsaferedrrcartnieavgueenlmbsgeegonefitnsmonbbpieeeenrggganintJniantioninnnsugsgaroooyrnn1ftti,hhn2eaf0nece1fic1faelt.c3ictMiovvneedwiddtiaalitltoeeen..l.eTTchhteetoaaddaoodppottpiiotonnthooeffpttrhhoiivsssissttiaaonnnddsaarorddf tiihsinsnoostttaeenxxdppaeerccdtteedd to have a material impact on 3M's consolidated results of operations or financial condition. Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm sana 50/114 11775588..00005500 zane 1/13/2018 Migsohcivesadg Gat OTIOOIOUSEHIAIO2O08T0_AHOSk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm TtInhneOOFcAtctoSobbBeeErr22m000e099,r,ttghheesiFuFnAAegSSsBBTuiissssskuuFeeoddrAAceSS,UUNaNoto.r. e22d00u00ce99s--11t4,h,eCCetreyrtpteaasiionnRfRetervvaeensnnauuceetAiAorrnarsantnghgeaemtmelnetnlstswTiThkhaiatt tIInhnccllcuuuddreeSeSooffstwwcaoarpreeeEEolfleesmmoefentnwttsas-r---e-aarcecovonensnseeunnessuss of of `rrthewccehooeFggniAnttSihtiBeiooEsnnmggaueuoirifddlgaainnnnecgycee.Is.pEsErxuoxiedsisustctTiitnansggsokssFfosofvetrwarcvreai,reectherraeectvvreeoennduunueectrfeeesacctooohiggenunnitiyttliiipooeinnnsnguogufitskdroaafnnetcsweaacrrrteieeoqwqnuhusierietnhssathtthfathatllsiiptowsrfpiottrvhwoiiavnsrisithisooencncsosunbbrseeriedaaneptprpspelcdlioeimpdeer1tdo0eoafantnshoneafntniwtiiearnercaeiardrreaernavntnegagnleeummeeehrntet Spowprfrohtodevdunuaccrtthteoeworirsslaselleevrbvioeicfceaea.c.ncAAyospunraortredeesdusucufltolsttruooofnrftdstheheeerrvataicmhmeeeesmnnucddlommineptenalntientss.icininlngcceollmuruedunettidlaiiiznnriAnAagSSnsUUogfNtNweoo.am.r22ere00ew00vn9h9e-ten-11n4us4,et,hmrmeaecasnoonygfyntwtitaataninrgogeinibgbilsuleeicpodprnaroosnddicuduecectratessdalanmneddostrseheerarvntvhuiiacncnedesseitnrthchatiatdhteerenelstlaoylfoottnownatrhee rrrseeocvvfoetewgnniuuatereeirrocwenocigolglagubnitediitaoianocncnce:ogguuuintiddthaeaendnctcefaoe.n.rgiUUubnnldedenecrrtththhldeeeAmAeSeouSUlfUtm,ihp,rlteheheep-eerflfnoeoomldllluoetocwnw,tiisnnaogcrrfactnowogmaerpmeopmenrneotndsptusrcwetwvooseounubluuldndenbdbrieeeeecedeoxgxwcnnilliutthdidotetdndangfgrusriooibdmmlaeptntrhhcoeeesdrscuacoctohptpeeserowotfhhfesasrnooeffuttnwwtdhaaeerrreeotfrrheteevvweseanonrufueetew. are Ccrceocomoopgmmonnippteionaantsegtnanhunnaideddtneanonnaocntes-s:sootfhf0ttewswtoaaarfrnetgcwciobaomlrmepophenolaeenmneitnestnsstsfuounnfnttcchatoeilonpnr0otgtodehguetechttth,eaesrnrogttfotolweddaeperlrleiiovvdpeeurrrcotthdh'ueespcptrfsuroonbdcduutuncicodttnl''aseldeeisstwssyeei.ntTnthithiataeallnAfuguSinbnUcletciaopsnriooadpliaurtyocl,vtsiand,nwdedhseuugrnnueddietedlhliaievvnseecorreeeftddownarheow 0 (lcalosolomocfcaptatowteenaertrrndmatessnlasticahvctaetitriooraennbllaccetooe)nnastsoinidddseeorrdfaatetwtliioiaonvnreewwrthahhbeaelntneinasaoneatsawrsrieartannhntgiigaenelnmttoehenetnhttseccootoapnnntetoagaiiifbnnslsebhbaopottrgtohhuddideuldecilativ'nvsecerfreaua(bnblncleotesniso-nwwsiaoitlftihhttiyiwnn.atTrtshhehecedsoeAclpoiSpvUeeeraooalfbfslsoseoo)pff.rtwwoFavaroirdeee3rrsMeeg,vvueeAninduSuaeeUncggNeuuoi.odina2dnh0ceo0ew9-t1o4 ism(issoeodeffifftffweeicceattdriievvaeedbmebealeginvgigeinnrenanmibiennlenggss)JJabaanemnguadiarndryyne1il,1inv,ge22o0r0a1n1b1t.1leh.s3e3MnfVoewtcwiwtliilliltvheleielndecctttth0te.oTsaacdhdoooppapetdtoathhpfetethippaorrtnoovgoviuifssiidioohanninssscoseofa(fnnthdhoiainssr-sssdtotaafsnntwnddaoaarrrtdedeppdxrpreooelsicsvppieeeecrdctaitbitvvloeeelhsly)ay.vtFtoeoonnreme3awwMteoo,rrrAimmaaSltaUeitremNirpaioaal.clllt2yy0on09I-1M4s consolidated results ofoperationsorfiracial condition. modified arrangements beginning on the effective date. The consolidated results of operations or financial condition. adoption of this standard is not expected to have a material impact on 3M's dIIninJsJcaalnnouusauarrreyyr2200e11q00,u, itthhreeeFFsAASSuBEndiiessrssuuAeeSddCAAS5S2UU0NNboyo..a2200i1100n--66,r,eIIqmmupiprrreoodvvdiiinnsggcDlDoiisssuccrlloeosssuusrrbeeossutAAbbeoouustt FFaaaiinrrsVVfaallruueeiMMneneatsouaarnesdmeountsro,utfthheeaaetatmalmnsee1dnndsasnctdeix2sissiitinn,nhgge. aidfnairisdrcclvvloaaaslrluuiurefeyheirineergqr,uararimcryehomy;n;egnaaotddstddiuihnnnrggdestsrehepiApanaSrgarC,ttaeh8ded2i0esixcbliyostsiaucndrgedfsilnaaigboborouveustqatulppuiuuurrerrdccdihhsaedacsislseesocsssl,,ourssseualslrseesshs,oasiusbtsouuhatuneicteeemsv,aesaalntnrodafsdnnstiselsfteatelrgmercgmienrneegtgnisaetnsttioreeolaln,aan.ttdiiFvvooerutoto3oWvl,fevtleeeivles33lsmAme1SeaaaUsnswuudrare2esmmeienfenfnttehtscse;;tive: frafoonorrdtsthchleebafarfsiiiifrsyts,tinqqwguuha,ariarttmceerroinoscgff20oc01th10te0,vr, eetehbxxieecngepgipstnt, nffthooirenrtgtehthxeherieserteqifqnuiugisirtrfeeaqmmireuevnntaatlurt0oeoptfpdr2erio0sovc1rvil1iod.dseeulArleeedvsvdeeialltbo33oanuacattclitthivdveiiitstlyyceolvoofesflupporuuefrrsccdhrhisaeaasqsgeuegsi,,rsreseglaalbsetyis,o,nhiii.ssssFsuuosaatrnna3ccneeMdssa,,,raatdhnnfidodsrssAe2etS0ttlU1lee0mmwereannesitsseafofnencaative Icginonrconclslsuosudldbeieadddsaiiitsnne,dNNworohtetieecshu113s3.is.oSSefifiofnnpecceceerttiatvihteiissobsnsetstgoaainrnnddnaafirrnrddgaiitnmmhcpepaaafccitcrtsssotnddqidisiuscicalolrootness.ruurroeefrr2ee0qq1uui1ir.reeAmmdeednntittisooonlnaylly,d, iiistscslaaoddsouoprptetisioornneqiduiddirnenodottbhhyaatvvheeismasamttaeantrdeiarairadll fiiommrpp2aa0cct1to0onnar3eMM's's consolidated results of operations or financial condition. sITnnuAAeppserilTlu22s00k11F00o,,rthcheeetFFhAAatSSrBBeciiossgsuniedzdeAAsSSthUUemNNiool..s22o0011n00e--m117e7,t, MhMioildleesssttaoonnneecMMceeettphhaoodbdolofefrRReeevvveenenurueeerRReeeccocogongigntniitiioontnim--oe-tnahccooodnfnsseoennsssuuubsssotofafnttthhieevFeFAmAiSSlBBeEsEmtmeorneegrgsiininngg cIrrosensssueieeadsrecrTshaoatosrirkcodFdneteovahvreaecltleoortppihmmcaeohtennnrtteticaanorrggraeannnnigztgeeeusmmpetoehnnnesst.smc.hiTTlihehvisitsesosmsnaeteannnmdtdaeaortrfhddow&wdosouuabuslsldatdanrrneeatqqicuvucieeirmrpeetiaittbssslpoeprrnrooeovvviesisnsisouirneoesbrnvebeesceommgenentittiiiiotnnnosormrdndeeerterhffoooydrrifaaonnnrteeshnutetbipsyteytarttniootorirdveeeccnoomwgghninliieizzsceteonhees in mmmciioillnleeessssitdttoooennnreaeest.iiiossFnaaocctrhhhiia3evtMveitesdd.c.ioIInnsntiaantddgddeiaitntiitnoounnwd,p,oottahuhniilsasrdcAAbhdSeSieUUrvewwemooeuiunlldtddoprrfereaqoqususipiurrebeecstddtiaivsincetillsvoyesbcuemrlgeioioloenfsfsiteconuenrgrreJtiaaaeinnnsuriianenvrffoeyornrm1um,aeat2ti0iino1o1nni.tswwiTeittnhhhtirrraeeedsstpoypepeictcntitotthonoearfpreraiarninsogdgesmieannemwdnatehsrindcthhhatsatttnhccoeootnnttaaiinn expected to milestones. expected to hamavtereial mpact on 3M's consolidated eos f aperl tons or finial condition. For 3M this standard would be required prospectively beginning January 1, 2011. The adoption have a material impact on 3M's consolidated results of operations or financial condition. of this standard is not ss 55 `TabTleoofifCCoolmnetreenst.s NOTE2. Acquisitions and Divesttures NOTE 2. Acquisitions and Divestitures Acquistion: Acquisitions: `33aMmMomnmgaaokkteehsseaarccqfquauicitssoiirttsiio,onngssrooofwftccheemrrataariknbebutusssiainnneedssesaesdsjaffrcooemnmtpttrimiodemuttecottilimimneeetsthhotarttttehhceehnCCooolmomgppiaeasnn.yy felfeels aalliiggnn wwiitthh its iti strategic et intent wwiitthh rreespsepcetfctoo,t, among other factors, growth markets and adjacent product lines or technologies. o"TtThhheeriismmppaeaccttoqonntuthheewicicotonshnsisonoillitiddhtaaetateeloddlbobcnlaalataisnnocncepssehhreicoetdt,oofffottlhhleeowppsuu.rrccThhhaasseeapplrriiclceeoaalllcloooccafaattptiiuoorinncsshoarrseenellaitepedrdictooe aaaccqqouuiissiditt0iioonnsss,e,iisnncctlluuoddiinnnggnaadtdjhjuuesstftmomueernntthtsqrreeullaaattriivvteeeoftfroo 2010other 2010 i comsiderdpreliminary, relywith respect qutairelried esetsdnd ails. acquisitions within the allocation period, follows. The allocation ofpurchase price related to is considered preliminary, largely with respect to acquired tax-related assets and liabilities. acquisitions in the fourth quarter of Quen J lds coe ome (Millions) SE Avista. Er IE Ache om Asset (Liability) Accounts resale 5 myo oms ms ms % Accounts receivable ventory 3 s I 1 7 Inventory Othercaren assets 3 7 31 2 Other current assets Markeabl scutes = RS 0 Eo 300 Marketable securities Property plant,and quipment 3 5 30 106 Property, plant, and equipment Purchasedintangibleascts 0 % 10 6 Purchased intangible assets Purchasedgoodwill mn m 25 st 980 Purchased goodwill Accounts payableand ther ailsn,et a) a [C) [5] as) Accounts payable and other liabilities, net Arizant Inc. $ 15 36 3 -- 38 362 512 (29) 2010 Acquisitions Attenti Holdings S.A. Cogent Inc. $ 23 $ 34 5 17 7 31 -- 380 9 30 90 142 122 295 (12) (88) Pigs eihcesodgr Go ADLIOIOSHIOOTASA-2060_1Ok Mo pen https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm Other Acquisitions $ 21 19 2 -- 29 69 51 (35) 2010 Total 93 77 43 380 106 663 980 (164) 51/114 7157588..00005511 note 1/1o3/2f01o8ther assets DIIennfttoeeerrfreerossettthbdbeeteararaaixrsninsagegsdtssdeeeubb(ttabiliy) Deferred tax asset/(liability) hpttpss://www.asecc.ogovvl/Arcrchhiivvees/seldogdarg/daattIa/B686T74A0O/000D041G1S0B416H59O1D1T0S0A7S84I5a/Ta1-12-0260600__I1H1O0Kk.hitmm an an = (31) 141) a6) 2) ay (141) (21) -- (53) (16) (47) (21) Netassetsacquired Net assets acquired s $ es765 s$ 2w07 s$ m794is$ 822 s$ C`SaSusupphppplleaemimedennttaall iinnffoorrmmaattiioonn:: (LCLCeaeassssss:hh:pCpCiaadaisds,hhnaeacctqqouuifircreeaddsh acquired NNNCeoaotnsnah--scapsaesastihhsda,((cfnfiqienuntaaionnrcfceeecdddasllhiaiablcilqittuy)i)red Net assets acquired s$ om7e716 s$ 2w227 s$ 6914562 s$ 5 $ s7--6151 $5 2w052m70 5$ 152 m--S 794 $ Te-- $ 765 $_aw2m-07- 5m -- $ 794 $ 115265S$ 1E96824 R$ 18 82 5$ QA uon weigAh coalons (Millions) 2009 Acquisitions Aearo Codn er Holing `AAIAncscvscceeotonu(utnLnotirsatsbyirrlieetcyc)eeiivvaabbllee `J$ Tot~ 1I0 F 31 $ Corp. )76 OtIOnhtveherenrctcuourryrrreennttaasssseettss Property, planadenquitpme,nt. -=11-05 78177 PPurrocphearstye,dplianntat,ngainbdleeaqsusipemsent 91%5 a7n8 `PPPAucuurcrrcccohhhuaaansssteeesdddpagignyootaooabddnwlwgieiliballllnedatssheetrs labilnee,t es)93 (25) 8417 798 AIonctfoecrfooetuoshntthebtseerarpraaaissnsysgeaetbdtssleebatnd other liabilities, net aa(281))) a((2n6089)0)) Deferred taxass ability) Interest bearing debt Deferred tax asset/(liability) 19(18) (16) 0) (684) (50) 2008Acqssttons 2008 Acq uisitions oer Other Audion sm Acq~sitions 3 ws $ 70 2 10 89 8 15 8 5 161 83 am 4 377 594 1392 594 2008 Tot~ $ 146 170 15 161 794 1,392 (1([120524)) 80(300)94)) 121) (125) (121) 17) (809) (171) NNeettaasssseettssaaccqquuiirreedd s$ 69 s $ m523s$ w871ns$ 11,3a9m4 C`SaSusupphppplleaemimedennttaall iinnffoorrmmaattiioonn:: LCLesass:sh:CpCaaaisdshhaaccqquuiirreedd N(oCCnaass-hhcppaiasdidh,, nneett ooffccaasshh aaccqquuiirreedd NNeotna-scsaesthsscquired Net assets acquired s$ B734os$ s5632es$ 2w8967 s$ 1l,4ao5ss9 5$ =694 5$ m52--339 5$ m827--16 5$ 65 wm-- 1,394 5 . 5m . 5 . wn . 5 iw $ 69 $ 523 $ 871 $ 1,394 5566 aos (105) @s (225) iss 1,848 22,012001855 275 1,830 1818 ise 1,848 `TabTleoaoffCCbonotnletennettss `GGooooddwwiill synergies l rreessuultlitinng g expected frroomm bbuussiinneessss ccoommbbiinnaattioinosniss llagrgeellyy 0arise after 3WT's acquisitionofthese aabtuttrsriibnbueutsastbealse.boItlonptthhreeeoxecixseitssitnirngegswcwoarorkcrkfhofaornrcdcdeeoeovffettlhhoeeapcamcqequnuitirareessddbobcuuissaiitnneeedssssweeissthaanntddhese bsuysnienregsisecs eoxpmectbeditonwareiasreetnafotietrmo3atMenr'siasalc.qPurisoiftioornmoafinthfeosremabtuisoinnesesleast.edInt-oparcoqcueisssirteisoenasrwcahsannodtdienvcelluodpemdebnetcaasussoectihaetedimwpaitchtothnestehe `Company'sconsolidated resultsof operationswasnotconsidetroebde material. business combinations were not material. Pro forma information related to acquisitions Company's consolidated results of operations was not considered to be material. was not included because the impact on the IcIennrataaddiddniietntiotienorttponorbibususeissintnehesasstscdcooomnmboibtninoaattthiieoornnws,i, s33eMMqpueaprleiirofidoyifdcoiacrlallyalcyacaoccuqnqutuiiirnreegsscaceerbrtutaasiiinnntteaasnnsggciiobbmllbeeiaannndad/to/iororniinsnt.tTaanhngegiisbbelleetaasscrstetsasaannndd ppsruureracclhhaaarcssgeeesstlyiirnnietteferrloeeesscttstnseiidnnsss additonal asstpurchaseandinvestmentactiviy. certain enterprises that do not otherwise qualify for additional asset purchase and investment activity. accounting as business combinations. These transactions are largely reflected as 2010acquisitions: 2010 acquisitions: aDDcuuqrruiiinnrgge22)0,0c11o00n,,t33iMnMgeccnotmocopnmlseitpeddetlrteaentenbibuotusnpiseiannieedsdsfssoccroopmmbriben-ian2ta0it0ioo9nnbs.su.sTTihhneeepspcuuorrccmhhbaaissneeatppirriioccnees,ppaaaiindd footrhrtethhieessmee bbpuuossaifinnoeectsshssteccorommmabitbneianrtaitioo(nnnsts)((ndeuntrooifnefcgcaa2tss0hh10 maaaigcglgqgirureoeirggneaadtbt)eea,ddscettoodonoS$ti1n1n..g8a8ec33qn00utbibicslioilllntiiisoooinndn..edIIranantteiaaoddxnddiipttiiacooinnd,,ftthohhreeapCtCraoesom-)m2pa0npas0ann9noygybnru-erescciceaonoserrhsddsieendcdvoeamsfftbiiniinnnaagannatccineoedddnslif,ibiaainbnlaidilnitcttyyihnoeogffiam1c1t.p77iavbcibtitiyllol,liifowoonhntihJJcaaehppraamrnneeealsasttteeeerYdYseet(onnnAe((ptas)rppidpplurroro2ixx0nii1gmm0a2ata0teec1lql0yyuiS$s1i1t88ion mooffittlhlhieeoAnA-b-OOansneeedbbroranannaddceeqdduillsaibbteieollbnbudsuaistineneeessxssacahnnadndgrreeellraaattteeeddso)opaepsrearnatotiinoo-nncssa(sd(hdisiiscncuvusessssteeidndfgufutarnhtdheerfribnbeaelnloocwwi)n.)g. activity, which related to April 2010 acquisition (`1(V1a))ssIInnoJuJaransnusuLaairrdyy2a20,011a0m0,a,3n3uMMfac((CtCuoornnessruuommfeefrrlaoanonrddcOOafrfffeiipccreeoBBduusucistninessebssas)s)pepudurircnchhRaaissoeeGddaralalllnoodffettdhheooouSutulsts,ttBaarnnaddziiinnlgg.shshaarreessooffIInnccaavvaass IInndduussttrriia ddeeCCaabbooss e Vassouras Ltda., a manufacturer of floor care products based in Rio Grande do Sul, Brazil. ipsosecovivchvesiodgariatu87400CITOABSOTIODTBASI 11-2060 DKNm soma https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 52/114 11775588..00005522 zane 1/13/2018 Migsohcivesadg Got OTIOOIOUSEHIAIO2O08T0_AHOSk Hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm o2p(2e))rIaItnniAAopnprsir,illw22h00i11c00,, 3i3sMMhe((aCCdooannussauurmmiecerrradanidndTOOoffkffiiycc,eeBJBuauspsiainnneesssns))dpphuuarrsccmhhaaanssoeefddacatmmuarajijonorgri,ittyydissstatarkkieebuitnitothhneaenAAd--sOOlnneeesbblrroaacnnaddteeiddonlasasbbereol ubbnudsuinJsaepsasiana.nnnTddhreereetlslaseteserddmofs mitohipsinesorcaraciqtiqtuoyuinissssth,iatiwirooehnnsi.cnihnAccciulcsuodhdreeeddadidenegqmluymab,ret3debrdMeeddreeimmncioiTrrdmrodookerydidtnog,iJpspeauubptutaasdanninndadensccdasalhlllcaooosmppmtbtiiiaoonnnnausstffiafooocnrtuaaarsifiniaxgee,ddadpcipqsrrtuiiriccisebeiutaatinniooddnnoffaifivnvaeedl--lyysoeeaaualertrssttteleoarrmncmdawitwiinotginthhisnrrtaeeersrsopepuseentccsdtLwtJooiatpthhhaaene.rrceTeomhireeanisitnepnirongmng.dsionfg firmfvieveicne-oo-yryrediesatayrirnsffthiirnanearasenntscc.oeeAddtcliaciaisoblridaliintiygolloyff,,13.M71w.7 bhbiriilelclcliihooornnideJJradpepactahnonriesedssebeeduYsYiineneonetshrrseeellrcaaottlimiviveebliitonoeattsthhi,oeeneetammsabbaeendaddnadneceuqddaupplisuuritt/titcoeanalolofoof1ppatt%liloionounatsssotoafnftdthhiene saison dte. g interests with a acquisition date. Thecorr The Company esponding Company records interest on this liability, which is recorded in other liabilities, at an annual rate of 1%. c(a3r)eIIpnnrMModaauyyc22t00f11o00r,, h33eMMa((lHHeceaaalrltethhaCCndaarpeerBoBufsuesisininoeenssas))luppusurercchhbaaassseeeddd cicerrKtaiatinchasesnsseerst,s OoofnftJa.rR1i..o ,PPhhCooaeennnaiidxx.LLitd.., aammaannuufafcatucretroouffrhhaearnred ygiaendnskein hygiene and skin care products for health care and professional use based in Kitchener, Ontario, Canada. (m(44)aIInnnJJuuunnfeea2200co11f00tt,,hu33eMrMrma((eIlnddaaunsdstraiacaoluaasnntddicTTirrnaasnnusslppaotoirrotaanttfiiooornnBtBuhseuisaninresoessss)p)ippcuuerrccihhndaaussseetddrsya.lllMooTffLtthhPeoooluyusFttsaatbanndIdnicin.nggisssbhhaaasrreeessdooiffnMMMiTTsTsIiPPsosalylugFaa,ybOnIn.tca.r,i5ao., Canada. manufacturer of thermal and acoustic insulation for the aerospace industry. MTI PolyFab Inc. is based in Mississauga, Ontario, Canada. (s(55))uIInnpJJuloplyyf2n2l00o11ni00-,,weo33vMMren((SSdaaiffesetptyyo,,sSaScbeclceuurpriritoyytaeancntddivPPerrocotleteocctsitiionongn,SpSererirmvvaiicreisslByBucushsieinnmeiecsssa))l pppuurrrcohceahcsaeisdvaealcdlolovofefrathhlelesoofuotustiatnndsdinugtssshahauasrnrees.sodDofifiDlDiynalsilygyLssimLLiiitmmeiditteeidsd,, a a based supplier based in Ellesmere Por, United Kingdom. of non-woven disposable protective Ellesmere Port, United Kingdom. clothing, primarily chemical protective coveralls for industrial use. Dailys Limited is C((o66)l1)noIrnaOdOcoct-tobobabeserer2d20m01a10n0u,,f33aMcMtu((CrCeoronosnfusmfuyemrfianesndrhdiOOngffeffiiccqe BBuuussiinineeasspsns))dppmauucrrccceehhsaaosnsreeiddetcsce.errttaaiinn a assetsoofs fRRoossssOOus tudtdoooorr SSppoorrttss Specie, Specialties, LLLLCC,, a Colorado-based manufacturer of fly fishing equipment and accessories. (M(77a))tiIennrOiOcactCtooabb,eerrL22i00d1,100a,, m33MMa((HHeneaallttuhh CCofaafrreeoBarButsuhciosnidneotesnsstsi))ucppusuurrrpcclhhiaeacssseeddbalasllleoodfftithnheHeoaountugstasthtaaonnvdd,iinnCgghissnhhaaa.rreesooffHHaannggzshhoou ORRJJ MMeeddiiccaall IInnssttrruummeenntt sanndd Material Co., Ltd., a manufacturer of orthodontic supplies based in Hangzhou, China. w((88a))nIInninOOcgctstoooblbeuetrr2i2o0n01s100d,,es33iMMgn((eHHdeetaaolpltthh CCraareeeBBuhsuyvsipinneeesss))nppuurrccihhnaasssueerddgilacalllloosffettthhtieenugosiusbtstatasannedddiiinnnggEssdhheaanrreerssoioffeAA,rriiMzzaiannntnIInincs..,.aa mmaannufuacftuirecrotoffupparattieieennrtt warming solutions designed to prevent hypothermia in surgical settings based in Eden Prairie, Minnesota. ((H99o))lIdInninOOgcscttoSob.beAerr,22001T10e0,l, A33vMMiv,((SSsaafafeeettyy.,,bSSaeescceuurdrisittuyypaspnnlddePPorrfoottreeecctmtiioootnneSSpeerervvoiiccpeesslBBuesui-snimneesosss)n)piptuuertrcccohhhoaralssoieegddniaaegllsl oosffetthhfeoouostfstftaaennndddiiennrgmsoshhriairrteeossrooifnfgAAsittpenlnittciations aHnodltdoinagssisSt.Ac.d, earTcaerl eAvciivl,itIsireaseli-nbmaosneidtosruipnpglaienr dofernehmaontceinpgeotphlees-moanioftofreipnagtitnecysh.nologies used for offender-monitoring applications and to assist eldercare facilities in monitoring and enhancing the safety of patients. (o(11f00f)),IInnaOnOcdcittonobDbeeerrc22e00m11b00e,,r332MM01((0SScaafofeemttpyy,l, eSSetecceuudrriaittsyyaeacnnoddnPPsrrosotitececctmtieioornngeSSererfrvvoiircceetssheBBsuusmsiienneaessms))oaauccnqqtuupiirreeerdd uaatcctooanndtrraiollnllignnsgghainnrkteerreessttthiiennCeConogdgeeenrntotfIofncec.r.,vvhiieaaraachtteeynnddeerr paoacacffqqleumuri,,irraiifnnnaggdcettihnhaeenDrdrieeecmmieasamibinnibiioennmrgge2ntno0ron1incc0cosocnyornsomttrloepllmlilesinntfgegodiriangntotservereceesorstntndmiinn-etsntthhteeepsc,cmoommeprpgaaennryyf..orCCotohggeeensntatmIInenc.a.,mbboaaussenedt in Pasadena, California, per outstanding share as in Pasadena, California, isthe is a providerof tender offer, provider of ger, thereby f'mger, palm, face and iris biometric systems for governments, 557 `TTiabblleeooffCCoomnteensts: IhlaewweDneenfcfooerrmccbeeemmreen2nt0ta1ag0geensncicceiess,,qnanuddocicfoommtsmhmeeirrecreictmaiaaliloneeinnntnteegrrppnrroiisnseecsso..TnTihhoelciocnnogsnistdideereraattiriooinnneCppoaesinddtitnn,tthh1eepprreeNcceeetddisinneggttbsalbsleeicirnleculduddeiesnstC2$h2o44g88meimlnilltloionIncreellaatteedd ttoo tthreanDsaeccteimonbienrc2l0ud1e0da$c5q3u2ismitioinlofoltfhcoearsnehmaanindimngarnkocnicaobnltroslcliunrgiicnst,eraesstdiinspCloagyeedntn,theInpc.rNeetcasdseits nabclqgeu.ired in the Cogent Inc. transaction included $532 million of cash and marketable securities, as displayed in the preceding table. PusPrucrthchaarsseleiddanieidbdeieanntsitgisffioiaahvbbelleertiatnatwanengigigibhbltleeodaa-ssassevetetssrarrgeeellaaltetfdeotfo tt1hheeyaaeccaqqruusiiss(iivttiieoosnnsstrthhaattncclgloossireeoddnmiignn 2220010111007tfoyoetaaalrleesd)d.S$A66c66q33uimmirilelldliioodnneaannnddiwwialillllbbieenataammnogoirrbttlieziaezsdesotdnsoana straight-line basis over a weighted-average life of 11 years (lives ranging from 2 to 17 years). Acquired identifiable intangible assets fnoortwmhaitecrisaignificantassumedrenal a extensions of underlying mangement impacttehd deerinationof her useful ves were for which significant assumed renewals or extensions ofunderlying arrangements impacted the determination of their useful lives were not material. AIInnlpFFheetbbrrBuueaatrrayy E22n00t11e1r,p,r33iMMseC((oIIn.dnuLdsit.urisalaaalnnadddiTTnrgraamnnsaspponortrtuaattfiioonsn Bcsuousifinbrneossrxs))asanneonuoaunnlccaeepiddeantthnhagtdt mittaccsookmmpiplnleettteeaddpieistsbsaacdcqaquguiaissriiittiieoornneodoffitnthhTeitapappeee,-erTleaalatvteeadd,aasssseettssooff Alpha Beta Enterprise Co. Ltd., a leading manufacturer of box sealing tape and masking tape headquartered in Taipei, Taiwan. TIInneDDceheccneeommlbboeegrri2A20e0G1s100(,, 33MWW((IdinudsutnsrtbiriayatllwaaanneyddoTTfrrraaannsptspupoborlrthitacattiieuoonnndBeBrruuossfiif)nneeers,ss)W)iaannntennrootuuhnnuccre,eddbahthsaaettdiiitneeZnuteegr,dedSwinnittoozaeaarnglarangedr,eememenelntetat0doineagcgqqluuoibriaelWWisniuntpteperlrtithheuurorrf appTnrreeedcccchiiunsstiiooiolnonngggrgiireoinsndodAi.inGnggT(ttWheeecc'mhhpnnrtoeoorlpltoohoggusyyre)sdsebetryrrvviawinnngasgaycccuotusfsttaoomphmeuaerbsrslasicninntategthnhgedereearrgrcaoetfaefoveofraf.lhhWuaaerriodndt--fet0ora-t-hpggurrpirin,rndbdopapxrsreeiecdcmiisiasniitooZ$nneu4lpag5pl,y0piSlcmwiiaclitatltziiieooornnnlsaslniiadnn,tiiindsiduavusstel0etiraaiadallli,,nogaaftuugthtoloeommbocoattlitisvvseaue,np, dpsailitirneecrgraaolfft,, oSasfhhnfaaderrreecsasuntootdiffnWWwgiatiinonvtoteelesdrrt.httTuhhhereuocropnnraodonaipfftuuoillsolleynydddoitfirlltauuhntteesedadtbcebatniasodsienissr.,hinaOOgsnnoafFnFee6abb7grrguupraeaerrrgyycaet11net1,vo,2f2a00luW11e1i1,,lo3e3fMraMpptupphbrurolb'xiliisssmhhheaaedrtdetelshtyhee$B4DDyt5eeh0ffammitdiiitlaivlveieoe,nIInnr3ettelearritiamimvcRqeReutsieoruseuladllttlotoofhfftotthuhheegephpuoubuobltpsileticacnnttmdeeainnnrddgkeeerrt purchasespproximately 15%ofWinter's shares. An additional approximately 23% offer and waived the condition of the tendering of 67 percent of Winterthur's shares. By purchases approximately 15% of Winterthur's shares. An additional approximately 23% ofWinterthur shares that date, 3M acquired of Winterthur's shares aveben tendered through open marke have been tendered t Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm sna 53/114 11775588..00005533 zane Migsohcivesadg GotOTIOOIOSEHIAOI O20T80A_HSOk hom 1/12au3n5n/2d,d0e2e1r0r8t1thh1eepipnuubsblclicicocretdensndndeceerrwooiffftfeehrra..pTTphlheiephctpuatpubbsbll:e/l/iwctwettnweednn.seddereecorr.gofooffefvfe/erArrrlcwwhaai.vsseeSsxe/xteetedtegnneaddmre/ededdanftfatoo/6rro6aa7rp4pe0ler/r0iit0ooe0ddn1d1oef0f1r4e160d05s9tahr1aa1idr0ie0ng7sgw8i4dd5laa/lyyasso1s1ffc-rr2oo0mm6F0oFe_nb1eM1rba0urkura.arhcrtymhy711,442,,022100111.11 1to February February 25, 2011 in accordance with applicable tender offer roles. Settlement for all tendered shares will occur on March 7, 2011. 2009 acquiions: 2009 acquisitions: DauDcrquiurniigrneg2d2)000a09n9,, c33eMMrtaccioonmmpapclqleeutiteesidstiffooonuurrcbbouutssisinnaeenssdsscccooomnmbtiibnniangtaeitniotoncnossn..sTTihdheeerpaputurircochnhapasaseeipdprfriioccreepprpaeaiidd2f0foo0r9tbthhusessieenbeubssuisincneoesmsbssinccaootmmiobbniinsandtaiuotrniisnon(gnn2ces0to0of9faccgaagssrhhegated tacoqSu6i9remdi)llaonnd.certain acquisition costs and contingent consideration paid for pre-2009 business combinations during 2009 aggregated to $69 million. (`(1S1o)lIIunntiJJoaansnn,uuaaprryyr22000o099,,vo33MfMiwaS(dStaaeffreeepttyiyr,pSSeerececuhurariibttyiylanantddioPPnrrsooetertvceitiicoenns SSbeearrsvveiidcceiesnBBMuuossirinnoeensss,))ppNuurerccwhhaaBssreeuddnsaawlllilocofkft,thhCeeanoavuditass.ttaanddiinngg sharesofAlec shares of Alltech Solutions, a provider of water pipe rehabilitation services based in Moncton, New Brunswick, Canada. 2(p2))eIIbnnFuFesebibrnreuusaa,rryy220l00o099,l, 33IMMa((dIInenddiruunsspttrrriioa)vliasdnniddngTTrcraaunnssstppooomrratsatotiliouotnniBoBunsusisininneescssoss))tpipunugrr,cchhmaasseedditthhee nasssesntedtsctsooonffvCeCirootmminppngafacleCCxgoairbppl..e'ssppurrbeesssssauuerreessseeesnnssdiiuttiiavvereeaarddhheeedssiiivvnee Hacketstown, NJ. tape business, a global leader in providing custom solutions in coating, laminating and converting flexible substrates headquartered in Hackettstown, N.J. 3a(3d)) IIinn AAspprriti1l 22ob00f00Mu99e,,gtu33iMMaor(('Irdsnu,dsuItsrcti.riaapllroaadnnuddcTtTrsrabanansssppeoodrratiatntiiDooannvBeBunsutsiriynn,eeUssrs)i)ptpueurdrcchihanasgsededodraalnl.loofftthhee aouuttssttaannddiinngg ssharhesoaoffMMregeugeiuaiarsr''ss IInntteermnaattiioonnaall,, UUKK,, a distributor of Meguiar's, Inc. products based in Daventry, United Kingdom. th((e46))rmIInonmJJuelltyye2r200p00r89o,,d33uMcMt ((lCiCnooenns,ssuuwmmheiercrhaannaddeOOsffoffidiccbeerBBouausdsiilnnyeestsshs)r)oppuughrrcchcoasnehsdutmathheeersAcAhCeCaEEndn@elbbsrraainnnddNeeoddrt((ahannAddmreeerlliaacttaee.ddbbrraannddss)) ellsatstiiccbbaannddagae,, ssuppppoorrtss aanndd thermometer product lines, which are sold broadly through consumer channels in North America. mPPiuulrrclchohanaossefde ididdeeetnntitiifffiaiaabbbellee iitnnattanangniggibibbllleeeaaasssscsetesststrehelalaattweeiddllt1boetthaheemffoooruurrtaaicczqqueuidissiiotnaiosonrnassitgtahhatttlccilnoelsebodaisisnnso22ev00e00dr99awttoeotiaeglehddtS$d22-88avmmeiilrlllaioognne.l. TTfhhiiossfininccgllhudtdeeyddea2$r2s00(ives Acrmraqaniuglgliiiionnrnggefodfrrfdooiemmdentntihhtirrafeeiebabet0olet11i22anntyyageeniaagbrsislb))eleansnadedsst$$es88tsfmmtoihrilallwltiihowoinnicololhffbseiiinnpaddimeefffoi'minritciittazeeet-Tldsiveosednudmaiiennstdttaarnanrgigegiihbbnltlw-eelaaianslsseseoebtrtsasesrxeisetlleaoanttvseeeiddornttaoowotthfeeeigwwhdeeteelrldll-r-yraeeivccneoogrrggannmgiiezzaeelniddfemAAoCCefEEneitghbbitrrmayapnneadda.cr.ste(dlivhees ctcminatonof thei seul ives were ot aerial Acquired identifiable intangible assets for which significant determination of their useful lives were not material. assumed renewals or extensions of underlying arrangements impacted the 2008 acquisions: 2008 acquisitions: DucDeruritrainnigngc2o20n00t08i8,n,g33eMnMt cccooonmmspipldleeetrteeaddti1o1n38bpbuusisidinneedssussrccioonmmbhibenianttawiteiolonvnse.s.mTTohnheethppsuurrcccahhdaaesseedDpperriiccceeemppbaeeiddrffo3or1rb,bu2u0ss0ii8nneefsosscpcoromembvibinioanutaistaioocnqnsusi((snieettitooofnfsccaassghhraaoccqpquueiirdreeddt)o) and and S394 certain $1.394 billion. contingent billion. consideration paid during the twelve months ended December 31, 2008 for previous acquisitions aggregated to "TThhee 1188 bbuussiinneessss ccoommbbiinnaattiioonnss arreessuummmmaarriizezde1asds ffoolllloowwss:: s1p(1e)ciIIannlMtMyaartrcchhehr22m0o00p0l88a,,s33tiMMc p((IinnddouussttrrliiaallaaynanndddpmrTTorrvaaeinndssepporroorrtftaatsttoiiolonntBhBeuurssmiionnpeelssas)s)ptpuiurcrcccohhmaaspseeodducncderritanaignsaaessrssveeittcsseoosffbHHaistieteedccihhnPPHooellbyyrmmoener,rssKInenenc.t.u,caakmmy:aannuuffaactcutreurorofef specialty thermoplastic polymers and provider of toll thermoplastic compounding services based in Hebron, Kentucky. Pl 58 `TTiabblleeooffCCoomnteensts. 2((2e)reIInanfAAepprrriri1le22f00e0r08e8,d, 33MMapspuuArrcchcaahsa)esdaelamdlll afofntehuefoouuattsscttoaantfnpddueiinrnrsggoessnharalhrepsaroooftrfeAAcceteaiarosrnonHHodlodledininnrgggCCyoaorbrpsp,o.,rttbhhieepnpagparrreeondtucccootmmsp.pAaacnnayyrooofpfArAocedauorcotsTTaeecrchhpnnorolilomogagirieeisslyInncc.. ian(innchcldelruTuerddaaeefntddesirpinnorterthfaheeterSirSaoeanfdfeBetottuyysa,iSsSenAececuesuraririnotty)yd,aaapnnrdmdodPaPurnrocuotttfeseaccctfttiiouoorrnnehSrSeeorcefvrovipnicecsereussomnBBeuaurlssripinnreoeestises,,cbptbouirouttnttitohahneneordrmmfeaanAllecaracgacoyoruuasssbtbtsiiucocssribysnisyenstsgteepmamrrsosepdrpuorcocdtdlusuu.ctdcAtsesedaarirrnosetpiihnrenoccCdlluouuddnceetssdduanimnrteehtrhpeaeriImdInndadOurfusiflstyitrrcaieall aBaBupnuspdsirioTongxresaissnms..asptCCeoaalrsstyhahtSpip6oaa8niid4dB,,muneiseltiltnoioefosfncs,caaawssnhhhdiacapcchrqqowuudiaiurrsecedtm,s, fffmooorretAAhdceeaacirroontptasoauetliamdlledeodrfyrpafeprtapoirxloipxmoimarttiaoetnellyyof$SA5522e33armio'lislllbiouonsainannedsdsddaertbet assumedfom included in the assumed from Acar totaled Consumer and Aearo totaled Office approximately $684 million, which was immediately paid off. d(e3v)IeIlnnoAAppepririlnl 22d00m00s88k,,e33tMMer((oHafelaelttshdiCCnaagrr.eeedBBugusesiinnmeeesdsssi))capplurprcrcohhdasusscedtdsadallellsooiftfgthnheeeduotuostpstrtaaennvddeiinnntggissnhfaherceatsiooronffseLLieesnssopEEenrattrnienpgritrseosoSrSmoosulsuemnmededpdbonInscrcp,.i,laisQ.Quubseebce-ecb-baassseedd developer and marketer of leading-edge medical products designed to prevent infections in operating rooms and hospitals. 4m(4))aIInnnAApprairillc2200ot00f88u,,r3a3rM nMdee((dCCfoolnnossourummeeeraannndd OOitffoffliiccsneeBbBuasugsisenidneisessns)A)rppguuernrccthihanaess.eedd aallol thof the osandin outstanding sshhaarreess ooff Kors Kolors Kevarkin, Kevarkian, S.A, S.A., a a manufacturer of branded floor cleaning tools based in Argentina. ((P59y)).IILnniJJduu.llyyan22A000u088s,,a33lMMan((IibnnadduussstetrrdiiaamllananndfdcTTtrrauanrnsispnpogorractatotiimoopnnaBBnuyusssiipnneeecssisa))lppizuiurncghraicsneahdaaaalllsonofofefthhgdereeoopeuautitssrttapanrnoddidinnugcgsthsshafarorretshoeoffpKKro&HfHeSsuiSorunfrafaalccedeTo-Teicethc-hnynoouolrolosgegiliefess automotive refinishmarkers. Pry. Ltd., an Australian-based automotive refmish markets. manufacturing company specializing in a range of repair products for the professional do-it-yourself Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo suns https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 54/114 11775588..00005544 zane 1/13/2018 Migsohcivesadg Gat OTIOOIOSEHIAOI O20T80A_HSOk Hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm ((I66)I)cn Il,n4Jmyulya2200n0088,,a33MMfo((fScSaeafnfetevttiyyr,,roSSnemeceecunurtriraittlyysmaannrddiPtPrororotietencctiteioonqnSuSeierrpvvoiic,essiBBnuculssuiidnnieenssgs))hppsuuerrc,hchahesaaesdlreadolslfsofattnhheedvoaiubtrsauttainondtimnogsnsshihitarotreresssoaoftfQQuineusestbdtTeTeacdeichghnunaonorlleoorgggeiidees iInncG.,eaanmoamnouvfoacst,urWeirsocfoennsvinironmental monitoring equipment, including noise, heat stress and vibration monitors that is headquartered in Oconomowoc, Wisconsin. im((p77)laIInnntJJosullyyn2d200c00o88n,,e33bMMea((HmHceeaoallmtthpuCCatarereedtBBouusmsioinngeerssassp))hppyuusrrcccahhnaansseiednglaelllqouofiftpthhmeeenoututtsfstotarandndedinintngalssahhanarrdeesmseoodfficMIMaTlTErEaCCdioCClooorrgppy..,haseammdqaaunnaurfutaefcrtueadricernotofAufrddrdeemensatrrlael, Oimklpalahnotmsaa.nd cone beam computed tomography scanning equipment for dental and medical radiology headquartered in Ardmore, Oklahoma. o((n88t))hIIonndAAounugtguiuststet c22h00n00o88l,,o3g3M yMa nH(HedaeslaelttrhhviCCcaearsrceeoBBmuupssiainnneeyssssb))asppeuudrrcchinahsBaeasddaealdlsloeofnftt,hheGoaeurwtmssataannnyddioinngshsrharareesis dooifgfgiTTtOaOlPP-l-SiSneegrurvavliicaeerfftithiroLLdoiinnngtgucuasalotleluccthsinohnik.k GMBH, GMbH, an an orthodontic technology and services company based in Bad Essen, Germany offering a digital lingual orthodontic solution. s9(9r))ucIIntnuAAauulgguausdsthte22s00i00v8e8,s,c33oMMmp((aIInnndyudssputersciaitallaainnzddiTnTrgaraninspsfporomtrtaatatiidoohnneBsBiuusvsieinnseesfssosr)) lppueurrrcohcoafhisanegsdealadllnlodofofttthhheeoruoatudstsbtteaansnddiiiennpggrsoshdhauarcreetsssofofofrPPtoohlleyyffboouaelmmdiPPnrrgooiddnuudccuttsss IInnce.h,a.at isbeaduaritnTcomrbaelld, Texas. structural adhesives company specializing is headquartered in Tomball, Texas. in foam adhesives for tile roofmg and other adhesive products for the building industry that 2((11P00h))iIIanndAeAulugpguiusast-t2b20a00s08e8,d,3m3Man((fIIinnddcuutsstrtrririaaollfaapnnaddi nTTtrraafnnisspspohorirttnaagttiiosonnyBBsuuss,iinneeissnssc))lpupduuirncrghcabhsuefadfsiaanlelgll aoofnftdthhpeeo looiuustthssittanagnnddpiianndggs shoaf Derdiceatison shares of Dedication to to Dal, Detail, Inc, Inc., a Philadelphia-based manufacturer of paint fmishing systems, including buff'mg and polishing pads. (`(111)S) IInwn SSieepptttebemmazbsbeeererdm22r0a000n88lf,,a33acMMtnr((eIIndnddauu:nssdttrriisa)ulpaapnnliddeTrTrorafannslsppaoortrttaiattniioonnysBBtuusesiminnseaessnss))dppufurirclchheaaessleeeddmesanlltlsooffotthrheetohuoetupsthstataarnnmddaicinneggustsiahcarareles,obofifLoLtiiegcgahcoaonnndAAgGGe,n,earal iSnwduistztreiralalnmda-rbkaestesd. manufacturer and supplier of filtration systems and filter elements for the pharmaceutical, biotech and general industrial markets. `((S11A22))SI,nnmOOcctatoobbneerru22000f088,,ao33fMMpco(l(tIyinudrnuuedsttrhuraiasnelean.nbrdadsTsTerdraannsstsrppuoocrrttauatrtiaiolonnaBdBuhesussiiinnveeesssas))nppudurrscchahaalssteesdd,aallwlhoofifctthhheaercouuhtsettaadnqsduiantrgtseahsrhaeanrdreeisdsnooHiffiEgEnMuMegFFrIIaSS,..AAF.r.aannncded.SSAAPPOO. S.A.S., manufacturers of polyurethane-based structural adhesives and sealants, which are headquartered in Haguenau, France. y(e(11ar33-))oIIlnndOOcbctstoiobnbecersr 22t0000h88t,,m33MaMn((uIinnfdduussstctrriuiaatlrlhaasnnddleTTarrdaainnnsgsppMoeorgrtauatitiiaoornnB'Bsubsursiainnneedssos)f)ppcuaurrcchahaarsseedpdaraolldluoocfftttshheeooroucultsetaatnnidnsign4gstdhshaaraperresonstoeofcdftMMienigegusgitnuaoiram'gros'st,,iIIvnnec,.,sau1r1f00c00e--s, whichis year-old which is headquartereid Iine, California. business that manufactures the leading headquartered in Irvine, California. Meguiar's brand of car care products for cleaning and protecting automotive surfaces, p((r11o44d))uIcIntNsNoonvvedemsmebrbeverirc22e00008f8,or, 33hMMe (f(HHoeeoaatlsthahfCCeataryrieeBnBudsuusistninye,esssws)h)ippcuuhrricchhsaahsseeded ccaeerrtdtaaiiqnn aaussssieaetntssOroosftfoFF,eooNooodrdrDwDeiaisyadgg.nnsotsiticcss AASS,, approrvideoroofvfffoooiodddddiiaaggnenoostsrtiiccss products and services for the food safety industry, which is headquartered in Oslo, Norway. m((11a55))nIInnuNNfooavvecemmotbfbeuewrrrir22e0000d88e,,n33iMiMca((EtileocFntrsoaylansnddtCeeCofomommrcumtnhuiencwtiaictraiterioaonnnssdBBcuuassbiilnneeemsssas))rpkpuuerr,ccwhhhaaisseecddhaialslll oohffattdhheeuoaouurttsisttraanndddiiinnnggPsrshohadarorseesss,ooflfGlGryr.faofoppllsastt SS.ppA.A,, 4a manufacturer of wire identification systems for the wire and cable market, which is headquartered in Predosa, Italy. p((1166r)) IoInnDvDoeecficeefmdmibnbieeserhr2re20d0l0i08c8,e,n33sMMl((aDDtieisssppullaanyyadannetddreGGrrFaappAhhAiiccRssBaBunusdsiiFnneAessBs)R)ppIuurCrcAchhUaaTssOeeddbaarlllaoofnfdtihhsneeaFourtuasntsctteaa.nnddiinngg sshhaarreessooffFFiinnaanncciieerree BBuugrgieiemnnnee,, a provider of fmished license plates under the FAAB and FABRICAUTO brands in France. 559 `TabTleoioffCCboomnletesnet.s (m(1177a)) mItnnfDDeaeccecemmotbbfeceurors2r2t00ee00d88,,b33rMaMsi((Ivndsd,aushsteraiaadlquaaannrddtTTerrraeadnnssippnooLrritaamttaiio,onneBBrusus.siinneessss)) ppuurrcchhaasseedd aalll ooftfthhee oouutsstaannddiinngsshhaarreess ooffAABBRARSAIVSOISSVSA.AO...,Sa. manufacturer of coated abrasives, headquartered in Lima, Peru. h((o11s88i))erIyn DDperecocdeeummcbbeleirrn2e2000b08u8,s,i33nMeMs,((CChooennasdsquuummaeerrrt earxnedddOOfinfffiCiccieencBBiunusnsiainntee,sssOs))Fpp,uurrrccohhamasBseeeddecrecsredtrtaoairinntaasAssGse.ettss oofftthheeFFuuttuurroo beth health supandcoomprresstion supports and compression hosiery product line business, headquartered in Cincinnati, OH, from Beiersdorf AG. PuOPrFucr1hc3hyaaesseaeddri(ddieenvnietfisfiriaaabbnlleienitngatanrngogiimbblloeesnaeesstests19ttorytaeatalreesdd).$77A99c44qmumiirlilelldioonpn saanntdd ewwiolilnfbleltSbs4esn0aommitolrlitiozznewdeiolodnlnbaesstarmariigthitgzi-leiednhebobavatsesisrswooevvieegrrhsatwweediegaighvhteteredadg-aaevvfeerrfaaggee1liifee y"yoWeefeaa1irr3gshyaatenneadddro-soaetv(hleierrvraeagascecqrqfauuniigrroeeifendd1gii3nfnrtaoytnmegaaiobsnnlgeeIsnitodooefbff1Sli$96n6e9iy9st6e6eamrmivsl)iel.llidAiooncns,qi,upspritrriisemmodafarpria$illt5yyec8ncutmussistoltoolfmmo$en4er0rwrremeerlliaealttliipiooounnnrsscwhhhiiiapplsslseabadenniddantmttrrhoaaerddteeMiznneeaagdmmueoesivs,ee, rswwasiiellwlqbbeieeisgaiahmtmtoeorodntr-tiaidvzzeeeetdrdaaioolgevvedeelrrisfaaheoovef,11 `which elt weighted-av which relate oawellrecognizedbrandname for companytat hasbeninexistenceformrethan 100 erage life of 13 years. Indefinite-lived assets of $58 million were purchased in the Meguiar's to a well recognized brand name for a company that has been in existence for more than 100 years. acquisitio years. n detail ed above, Dieses: Divestitures: pIInrniJavuantnee q2200u00i88,y,33fMMirmcc.oo3mmMppllreeettceeeddivtthehedsspaallreoooffcHHieioggefhhSdlJEuuSsmmppmiSSloolfifttowwnafaroreer,,ias33MMraCCnosomampcpatanonyny,,nttdoo BrBaattteeerryycVVeenntontuurereesgsf,, aatnteseccehhinnosololzolodgg,yyvetverneatnndustuarcreet,iccoaanppaiintaadlloiaennddr private equity firm. 3M received proceeds of $85 million for this transaction and recognized, net of assets sold, transaction and other Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo sana https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 55/114 7175588..00005555 zane Migsohcivesadg OGatTIOOIOUSEHIAOIO20T60A_HSOk hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm costpsra, fosof $23 millon (scorned nthe Sey, Security und Proection Services sgn) n 2008. costs, a pre-tax loss of $23 million (recorded in the Safety, Security and Protection Services segment) in 2008. NOTE. Goodwill nd IntangibleAssets NOTE 3. Goodwill and Intangible Assets oPPuuorrccdhhiaassleeddfrggoooonoddtwwhieliflllouffrrooammcqaaucciqqsuiuitissiiiottniiosotnnhssatttoocttlaaollesededd$$99i7n78820lm0i9illitnoontaiilnned22100110m0,i, l$Sl11immoinill,lliiSoonn9oioflfwlwhihiniccohfiiwsshddeiedcduhucictstiibbdlleeedfufrcotrittbaalxxepfpuourrrppaooxsseesps.u.rPPpuuorrsccehhsaa.ssTeehdde aagacdcoqjqouuudisiswtsiimittleiilonoftnnrsoaamcoctthtiitpvvhirietteyyfloiinniurmtthhiaeecnqffaouorlillsyolitwoaiowlilnniosgncattahtaibabotllnecolafollspssueodriicnihncnal2use0de0sep9sricctcoooentn,attliiewnndhggiee$cnn1tht5ccimoonncnisrlslieiiddaoesenrer,aadt$tiig9ooonnmdfsfioolelrriioplpnrlre-bo-2y2f00wS0029h9micaaihccaqlipsuoiidsseiiitdniiu2oocnn0tss1ibaa0lanneddnfottdhhrreeteaiidxmmuppcpaeuacdrctptssogsoooeoffsd.wiTlhleby $ca$d4u4j0m0uesmmntimcillylelinooetnnxsciitnonh2a2th00n0e0g99p.a.rTceThslhi.eme iTaanmmhaoerouyugnnatoltslsooficnnadtthihwoeen"i"ToTrlfarpnalsnulsrbclaayhttbiaiousoensnipaanrnneiddcsesao,ltswheeehegri""mcehccnooitlnlucuamrmlenlnaosiiwennsdtt:hhgeeooffoodllwlloiowlwliibnnygg able primarily relate $2 million in 2010 an table primarily relate t changes d reduced goo to changes in foreign dwill by foreign currency exchange rates. The goodwill balance by business segment follows: Goodwin Goodwill tInednuss (Millions) ind IHTnerdTaaurlnsattsnrpisCapoalorrareanttaditioonn DCHDiosneispaspllutlahamyyCeaarannarddenGGrdaOrpafhpfihiccicses SCSaafoPfenertstoyuyt,meScSeetecricuoarunniritdStyeyOraavfnnifdicdcees EElCleePoccrmttormrotouencaatinnicddoantSieornvsices ToulCompany Communications Total Company nen uo wo Dec. 31, 2008 Cn Balance 2009 acquisition activity 2009 translation and other s $ m1,5738s 7. $ 11,09010584s282 155 @s (4) $ 55 @)(44) 111 ms 50 $ 114 (8) an(11) 11,115577 66 557 on 1 674 Sm YGF $ 5,753 $ 1 (25) $ 22 es 104 $ ben Dec. 31, 2009 ae Balance me 2010 acquisition She activity we2010 translation oe and other 1m1,070837s$ 1,007 91%5s990 155 8s 8 $ 2520 ---u24 a1mn8 s$ (21) 844 8 11,222200 a428 222 on677 sms 5,832 $ ---ms 980 $ a(23)8) 3 8 $ bea Dec. 31, 2010 an Balance 1u1,8ms0me9 1,506 91954994 187 en 1,670 ost654 em 6,820 AaA5ccccoocuuhnnaitningngegsesatanndpdaarroddss rrreeuqqnuiuiiitrrsentotrhhatgttghgeootooesddtwwiinilllbobfelreettceeossvtteeedrdaffboorirliiimmtpypaaoiirrfammeiegnnattiaafnninncaaunaatlllayysaasnnedtdgbrbeoetutwwpeeweeinntahainnnnuauaralel ptteoesrsttssiiinnngcwceeirrttt.aaiinAn tccii3rrcMcu,umrmessptaaonnrctcieenssg ssuuunccihhts encrlly comespond 0a division. as a change in reporting units or the generally correspond to a division. testing of recoverability of a significant asset group within a reporting unit. At 3M, reporting units AmAsosvddeissicbusestsewcdeieuinnnNsNi obotustese i11n77s1tosttshheeegCmoCenonsntosslo,ildwidaiattteheddthFFeiinnraaennsccuiilaaillSntSgatiattmeepmmaecentnttses,l, eeefcfffteecectdtiivvneetiihnnethhgeeooffdirwssitlqqluuaaratrteerrnooff22c0b0y110b0e,u, s33iMMnsemsmasadsdeeegecmeerrntaatinanbpporrvooeddufuoccrttall ptmpeereoririvoomeddsissnbppeerrteewhsseeeenentniteemddipt..sacFbFtoourrsotitnhhroeoessspseeosrccethhgiaanmnngegguneenistststs,ta.hwatDittrrrheeistshnuuleglttereteddhseuiinnltrrrisneetpgpooqirrmttiipnnraggcuutoniirfeit2tf0lcce1rhc0ath,endgtaehiesn,CntthhhoeeegmCgpCooeaomonmdpsywpaainc,lnloyybmaaaplpeapptnlecieedpdsthbtlsheyesibrreuelilesaaitntiidgevvseessffsaeoiigrsfmavanamellynuupteeoatmmbeenoentvtthheitooafddlorttooall godill impairment determine the impact goodwill impairment for reporting unit to reporting units. for reporting units impacted by thisnewsuture and During the t'u'st quarter of 2010, the impacted by this new structure and determined that ro mpimentexisted Company completed its assessment of determined that no impairment existed. an y p o t en t ial AoAfssMdd'iisssccuuSsscssceerddiiitnnyNNoSotyteest11e33m,,siinnDiJJvuuinnseei22o00f00o99r,,r33eMcMovteeersattbeiddlittthye,hTleohinosgclivirveceddusmassstsaestnscggerrooruueppqiinnuggaiastrsshseooscCiiaosttmeddpawwinittyhhttthheelsUUe..KKt..ppaasosssppooorrtdt pprroofddouuccittmiipoosnniaarccmtteiinvvtiittyy hereportingunit (Security Systems Division) level. 3M completed i sscssment of 3M's Security Systems Division for recoverability. This circumstance required the the reporting unit (Security Systems Division) level. 3M completed its assessment Company to also test goodwill for impairment at 60 TTableiooffCClooennteesnt.s Coofofpopmtopetaennntityiaalalsggooooocddwwiolillml immpppsltaiisrmemsementntatefloorrgthohioissdvrreiepploorirttmiipnnsggiumnnnieittnatanntddesddteentteterrhmmeiinnfeeodduthhraaqt pntuoo aggooroooddftwwi2lei0lll1rim0mpfpuoairiarrlmmleernnettpeoexrxitisistntegedduuansssooffJaJnuudnnedee33t0e0r,, m22i00n00e99d.. tTThhhaete no impaiment Company also no impairment existe. In completed existed. In adit,tCh ompahnadbyo impairments of goodwill its annual goodwill impairment test in the fourth quarter addition, the Company had no impairments of goodwill ror of 2010 in prior years.for all years. reporting units and determined that Acquired tangible Asses Acquired Intangible Assets mFFioolrrl2o2n00.1100,B, iiannttaalnnggaiibbalnlreeecaaaslesesestsie(exxmccllupuddiiannbgyggccgohooatodndwgweeiisllildl)naaccfqquruiiirrgeendd ttchuhrrroroueugnghchbybueusxisicnnheeassnsscgcoeomambicbnisantaTitihooennssgriinonccsrareeaassyeeddntthheeaggmrrooousssntccaaarrnryydiinnaggccaaummmououlunantttebbdyyS$666633 amortiozfaatcqiuiorend intangible million. Balances are also impacted amortization of acquired intangible assets sof Decembe3r1 follow: by changes in foreign currency exchange assets as of December 31 follow: rates. The gross carrying amount and accumulated Fpartes (Millions) O t`PONhatotheenenr-rtmasamomororiritazizababbllleenninataannggiinbblesesgasesstseist(sr(pbaprdriiemmnalraaimrlieyelsy)ttrraaddeennaammeessaannddccuussttoommeerr-rlealatteedd intangible) intangibles) To gros canyingamount Non-amortizable intangible assets (tradenames) Total gross carrying amount amo 2 2010 2009 5 = ST aw $ 551 $ 457 2016 1528 2,016 1,528 12s 29 125 129 Fm-- > ----r $ 2,692 $ 2,114 Pigs eihcesodgroTADOIOBSOIOOTASA-2060_1Ok https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm sana 56/114 11775588..00005566 zane Migs heeOdTIOOIOSEHIOAOI 2T08A0_HSOk hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm Accumulatedamortization --patents as Accumulated amortization -- patents `Accumulatedamortization -- ober sm) Accumulated amortization -- other "Tolsccumulated moriaton G7) Total accumulated amortization "Totalintangibleassets -- net sim Total intangible assets -- net (345) (527) (872) $ 1,820 09) (339) (539)(433) on) (772) 5am $ 1,342 3Mhascertaintradenamesthatarnotamortizedbecauseofthe ong-meestablishednamerecognition inthei respectiveindustics 3M has certain tradenames that are not amortized because of the long-time established name recognition in their respective industries. aAAcmmqouroitrriteizzdaatitiinootnnaenegxxipbpelenenssseeinffo2or0r0sa8cuq(uNiiroeded i2i)nn.ttaaAnnmggoiirbbtllieeszaasetsiesotnseiixnnpccerreneaassseeeddfssiiggohnneiiffyiieccaaannrttsllyeyniindne22d0000D99ecccooemmpmpabarree3edrd1ttofool22l00o00w88s:dduueettoo tthheessiiggnniiffiiccaanntt aammoouurnt ooff acquired intangibles in 2008 (Note 2). Amortization expense for the years ended December 31 follows: AO(Mmtoilrtlitoeinzns)ation expose Sso2m01o0m s2o20009m s2o200008m Amortization expense $ 176 $ 181 $ 122 Expectedamortizationexpenseforacquiredamartzableintangibleassets esonddaofDecember 31, 2010follows: Expected amortization expense for acquired amortizable intangible assets recorded as of December 31,2010 follows: tens (Millions) Amortizationexper Amortization expense son ms my ame os ames 2011 SmSy my ms es msm $ 208 2012 $ 200 2013 $ 189 2014 $ 169 2015 $ 157 After 2015 $ 772 "aTTmhhoeeuppnrrteescceeddduiienngg10eeaxxdppdeeicctttoeenddasalmmirontrittzaizanatgtibiooinnaeesxxsppteenancssqeeuiiisssiaatnnioeenssstt,iimcmhaaattene.g.eAAsccttuiunaafllosarmmeoioguunnncttussrooeffnaacmmyoreotxritcizhzaaattniiogonneeexxtppeee,nnssieemmamayypddiifffafeerroffifrrnooammrneegmssittilimemeaaattneedsd tc, accelerated amortofiintzangaiblteaisseosannd thr vents. expetnhe Cost incurs renoreextwend the ermof mangle amounts due to additional intangible asset acquisitions, changes in foreign currency exchange rates, impairment of intangible assets, accelerated amortization of intangible assets and other events. 3M expenses the costs incurred to renew or extend the term of intangible assets. a61 `TabTleoofifCCoolmneteesnt:s NNOOTTEE44.. RResetsrtruuctctuurriinnggAAccttioonnss aannddEEsxtit AAccttiivviittieess RrResetmsrtruiucctntuurraiinnotggasacisct,tioioonnnnssdanmnddpaeexxliittmaaeccnttiiovvifittieeesssggteesnnseeroraaclllilyyaiitnneccdlluwddieethssiigsgnuniciffhiiccaaacnnttitoaanccstt.iiAoocnncssoiinunvvnootllivvinnigngpgeemlmplpioloyyreeeele.a-rtreeelldaattteeoddtssheeevsveeerraaacnntcicveecithciahersagrageress,,dccioosnncttruraasccstteidn Notetermination costs, and impairment of assets associated with such actions. Accounting policies related to these activities are discussed in Note 1. "dTTuhhreeifnfogoll2llo0ow0w8ii.nnggpprroovviiddeess iinnffoorrmmaattiioonn,,rreessppeecctitivveellyy,,ccoonnccecrniinngg thhee CCoommppaannyy''ss 22000099/22000088 rreessttrurccthurriinngg aaccttiioonnss aanndd its exxiiatcatcitviviittieess during 2008. 2009and 208Restructuring Actions: 2009 and 2008 Restructuring Actions: DrueDsrtuirrnuigncgtuttrhhieenfgfoaoucurtrtithhoqnqusua.raDtruteererootfof220h00e088raaanpndidddttehhceelirfinsresttininingnleeobmmaolonnbtuthhsssionofef2s2000a0c99t,i,vmmaniaangtehmnefnoutaaratpphppgrrqoouvvaeeerddtaeanrmnoddfc2coe0om0mm8minutitdetedtdittooouutnnhdedfeerrrttsaatkkeerrceeaerqtiauinniresof 12r2f0e0a0s0c9tr9i,u,lc33etMuM.rTinhaagggoggsarreecesstsiscsoiiinvvosee.nllyyDrurieeedndtuucoccheteheddedisrtslaclpcoioedtsotdgsserttcurrluupicnchtteiuucrrisneea,ganwnloiddtbrhraapaltatbiirooutnnisacailnuliilezzaseersddasatsecievtcvienvertiratiaylolniffnianclthitliehitetifeod,su,riitnenhcclqluuvuddaiirnnctgegrrmemlaoanfasun2oofu0faf0tcap8tchutaurnewridionngridgn,k,totlecdtchhhtoenifiacciarvaslletaathnnarddnedeoofafqffeiiuccaeerters of experiencingagedeclines in business activity, 1nd inclodedte facilities. These actions included all geographies, with particular experiencing large declines in business activity, and included the following: attention in following: the developed areas of the world that have and are + reDDduuicrnitniggontthshe,affobouuorurttthh 3qq1upuaerrtaecreronofttfw220ee00r08r8e,,i33nMtMheaaUnnnnniootuuendncScetedtaththeee,lel2i9impeiinracnteionantooiftnfmmeEouorrnreoepetth,h2aann4p22e,,44r00c00epnpootssiiitntLiiooanntssi..nOOAffmtethhreeissceeaeeammnppdlClooayynmmaedennatt, nd 16 Wprpeieedtrrcucheec$nntit1to8iinn6ns,ttmhhaieelbloAAiusositniaa3f1PPoarapceceimirffpciicelcnoaatryreweeaa.de.rTTeehlhieaneststeeehrdereeesUsttnrrmuictctestudurrSbiintnaggetaeacscant,tni2ioodc9nnspstirerhererscssue,ulnltttneeidddn iiE$nn4uaa3roofpomrieul,trlt2hhi4o-qqnpuueeaarrrcacteeenrd2t201i0n0008L8faippxtrienerd-(Atsa.amxeteccrhiiahcmragpaaaeoniorrfdmf$Ceg$2n2a2ten2s9a9,dmmTai,hilleallnioodnn,,16 pwiprrnieedtchcreee$dds1iicn8nagg6rcccmhhh,iaadlrrleiggoveenesslfwwooeeprrmreeemrnrepteclcoonoyrddereeded-ersneidntlacectodeosdsettoixtofepfmessnaasls/lbeessen5((e$81f88i044tsmmmiailnlillldloiiooonnnt))h).,e,Crssa,elasllnihidnnpgg$a,4ygg3merenmneatirlslaliloinannnd2rde0alad0adm8timendriinetsoitstrtfraeiaxttieoitvvdiseeraeesxsxeeppteesninmssteepssari((r$5m11ce33n55ttwsmm.rieilTllelhiiinoeonnon)),t, material and research, material. development and related expenses ($10 million). Cash payments in 2008 related to this restructuring were not + rDDecuuuriicntngiotthnhe,fafiibrrssottuqqu4uaa3rrptteerrocofefn22t00w00e99r,,e33iMMn aathnnennooruuinnlcceeedddSttahhteeesecll,iimm3iinnpaaettriiocoennnootffipanprLpoartxoiixnmiAmamtaeetelrlyiyc11,,22100600pppeorosciestnioitnitsn.iOOEoFufrnthohsepesse.eacenmrdpp$llooeyyrmmeeennnttt in the forAAesrsdiieuaaPmcPatpicaloiconfiysfii,eccaeabasrroleauaa.t.tT4eTh3dhepesiseeeerrcmreeessnsttt/rruwubcceettruunerreiiinnnigagttnhasadecc5ttU6iioonmnniisstlerrldeiesSousntlatatreeedlsl,aient3e6ad pftrieorrfsscittxe-qeqnuutaaiatnretseLrrea22t0i0in0m0p9A9ampiprrermere-eitncataaxs,.cc1hT6hahpregeaperrcrooeefnfcgSet$6d6ien7i7mnEmigulirlclolihipoaonern,g,awewnsidwtiteh5hrpS$e6e6r1r1ceemmcinoiltrlllidiineoodnnthien for employee-related items/benefits and $6 million related to fixed asset impairments. ecxopsetnosfessal(e5s3(Smi1l7lomni)l.ion), ling, generaandadministrative expenses(347million) cost of sales ($17 million), selling, general and administrative expenses ($47 million), andThe and esearch, development and related preceding charges were recorded in research, development and related expenses ($3 million). Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm sna 57/114 7175588..00005577 zane Migsohcivesadg OGoTt IOOIOUSEHIAOIO20T80A_HSOk om = 1/13/2018 `DwDuhruiircihnngwgtethhresseceoccnoocnneddnqtqruuaaatrettdeheirttonpotsff:h/22/ew00Uw90nw9,i,.ts33eeMMcd.gSaoansvnn/neAoor,ucuhnWnicvceeeessdd/etthdhgeeappreE/edruramrmtaao/anp6nee6en7ant4nt0dr/rJ0cea0du0puc1aci1nt0o.io4nI6nn5oto9fh1fe1aa0ppr0pp7irr8too4exx5ii/mmaSa1aat1tet-e2lls0yy,69900n0_010op1tpo0hokse.sihritttm7ioo0nn0s,p,tethoeepmlamjaoajrcoirctiptyytoeofdfa. ewvvmoohplliulucnnohttyaawmrryeyecrneeatarcrrloyeyndrurceecetttniiirtroereanmsmte,eednnbttioniinuntctcheee6nntUtiivpnveeeitreppcdrreoonSggttrrawatameemsr,oaWfffneeertr,s,htewwerhnhUiincEcihhutrreroeedpssSuuetllatatteeneddds,inJna1spa7pa$$n22.11InemmitihlllelirooUnnnhnneitocoAennds--ccSaaaetPssaahhteccscinh,hfaaairnrcggaoeettr..haOeO,rff7tt10hh40eepsspeeeeagogpgrglrerceeiagngcEaecatueeerpnoteptdea aceadhnmadpr33gloeppyoeemfrrcce$een1nnt1ttr6einmndiLulLacltatitiiooinnnn,sAAw,mmiaetbrehoiricucSta160aa63nnpddmeiCCrlcalaeinnnoaantddwfa.o.eTrTreheheeisnsmeethrreeespsUttrrnurueiccltltteauudtrreiiSodnntggatateaecycmstt,siio/o1nnb7esespniienneretfctoioetstnaa.tlalrinrndeestshuSae1ltl3eAedmsiiiiannliPaasoaesncecicorfionecdln-aadqtr-eqeuaauo,rat1rfte4ierxrp2ee20dr00ca09es9nspttpr.irnee--Etaauxx.rope (ciimhm5pap4aragiimerrimmloelefninto$tsn1s)..1,6TTahhmneedilprrlereioescecneae,drdwciihnnitgghcdc$heh1ava0rer3ggleoemsspmiwwleleienorteenarrfneoedcrcooerrremddleeapdtdleoiidynneeccexoo-psrsetetnolosafetfsessd(lali4estesmm((i$Ssl66/ba88enmmn)iei.lflilltiisoonan)n),dssee$ll1lli3innggm,,igglleeinnoeenrraralellaaanntedddaatddommfiiinxnseisrdtaraatstisivveeet eexxppeennsseess ($44 million), and research, development and related expenses ($4 million). + oDDcuicruninrgginttghheinthhWiireddsqtquuearratEearrorooftfp22ee000a0r99n,,d33,MMoas asnnoruonecxetdeu ttnhh,eeteheln eliiUmmniniinatdateitdioonnSotofaftssa.ppppTrrohoxxeiismmrtaesteetllryyuc22t00u00rpiponsgoisatitciitooinnosns,s,w,wiiitthhtnthheecmmaaljajronirouitntyy-odcofafshithhoocsnsheeargge rorteceelcmalusteir'rdbeinetdogne0ai.fnppiWeesnansesnisidotoeonnrnlsseeeEtt,utlerweommhpeieencntahtiniindns,JJntaeaoptpaaoan,lf,ersrSseeessmruailetllxeletdeoniinnnt'o,aftthtaihedirUrjdun-sqqittuumeaedanrrtSteestra2t2eo00s0p0.r99Tioohncreetst2epp0rrr0eoe8-s-tttnarauxxdcccthuh2ar0ari0rngg9geeraeoocsfftti$r2ou26nc6stm,uimrilniillncligliuoocdnntifnfioogornae.mnTpolphnolo-ypcyeraeeseehc-rreecedlhlaaiattrnegegded citheamrgse/bsewneerfietsraencodrodtehderi,nwcohsitcohfissanleetso(f5$275 mmiilllliioonn)oafnaddrjuesstemarecnht,sdtoepvreiolro2p0m08eanantdde20a09dreesxtpreuncstuesr(in5g1acmtiilolniso.n)The preceding charges were recorded in cost of sales ($25 million) and research, development and related expenses ($1 million). "The restcaing expenses ltdto these sconrse summarized by income statment He s follows: The restructuring expenses related to these actions are summarized by income statement line as follows: oCa(Mmsitlleioonrs)ses RSCSecseolelsliaitnnroggc,f,hsg,gaeelndeneeservraeallloaapnnmddeaanddtmmainindinsrtierlasatittveedreeeaxxxptppeeeinnnssvseeeesss Tol re Research, sdtervuectlourpimngenetxapnendsreelated expenses Total restructuring expense ae me 2009 2008 5 WF w $ 110 $ 84 ot 1s 91 135 5 10 8 10 5 3 TM $ 209 $ 229 62 `TTiabblleeooffCCoomnteensts: C2Coom0mp0ap8noenrneentstsstooeffttthoheehsseeersreessstctrrtuuocctntuusrrwiinneggraacctntiioootnnmssabbtyeyrbibauulss.iinneessss sseeggmmeenntt aanndd aa rroollll-f-ofrowwaarrddooffaassosocciiasteedd bbaallaanncceess ffoollllooww bbellooww,.CCaasshhppaayymmeennttss in 2008 related to these actions were not material. Ro EmployeeRelated ome (Millions) ale Items/ Benefits and Other etme Asset Impairments me Total EExxpIpneednnusssteerssiiainlnccnuurdrrrTeedadininpno22r00i00a88t;:on DHHIinesedapalulltstahhtryiCCaaalanrradeenGdraTprhaincssportation SCDCoaonifsnspesulu,ammySecearrnuadarnntGddyOrOafapffnhifidciccPeesrotection Services ECESloalerefcepcttotyrrroo,aStaaeenncddaunCCrdiootmymUmnamuannlduioncPciarcaotatttieeioodcnntisson Services Tow2008expenses Corporate and Unallocated Total 2008 expenses s$ 35B3 s$ 311I75s 17 2712 os7 5$ WS 65 186 $ "77 s$ "s4t0 19941 225i14%s --=--1 18 n712 n-- 77 12 43 T$ TM77 229 Non-cash changes n 2008 Non-cash changes in 2008 s = -- $ @(43) s$ ww(43) EEIxxnppdeeunnsstseeissaliinncacunurdrrTeradseiipdnnor22t000a09t9:o:n DHHIinesedapalulltstahhtryiCCaaalanrradeenGdraTprhaincssportation CSDCoaonifsensptsulyua,mmySeeearcrnaudarnniGdtdyOrOafapffnhfiidicccPeesrotection Services. CEESloaleerfcecptttoyrroor, aSsatenocddaunCCrdiootyUmmnmamannlduilnocPicracaoatttteeoiodcnntsison Services "Toa2009expenses Corporate and Unallocated Total 2009 expenses s sos ss $ 84 $ = 2 20 5 5 2 9 5 = i 13 is ie 16 i = i 11 3 | 3 37 5 0 BF 2% $ 190 $ 5 $ 89 -- 20 13 22 -- 13 -- 16 -- 11 1 38 19 $ 209 Non-cash changes a 2009 s Non-cash changes in 2009 $ `Cashpayments,netofadjustmeint20s0,9 s Cash payments, net of adjustments, in 2009 $ `Accrued ibility balance a ofDecember31,2009 5 Accrued liability balance as of December 31, 2009 $ Pips eihcesodgroTADOIOBS0IOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 6s (34) $ aso)(266) $ 7 76 $ as (19) $ ---- $ =n-- $ (53) as) (266) 776 san 58/114 11775588..00005588 zane 1/13/2018 Migsohcivesadg OGatTIOOIOSEHIAOIO20T80A_HSOk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm `(CACcaacssrhhuppeaadyymimebneintists,y,nbneaetltoaofnfcaadedjjauusosttfmmeDenentctsse,,miinnbe22r00311100,2010 Accrued liability balance as of December 31, 2010 s5$ 6(5n4)ss$ ==n=y 92 $ 22 $ "Themajorityofthremainingemployeerelated eands benefits ae expecteod be paid aut inca in 2011 The majority of the remaining employee related items and benefits arc expected to bc paid out in cash in 2011. Ei Actes: Exit Activit~'es: iDDnurprinrget-ithuhexesnsceehccaoogrnngddeoaafnnddSt6hh8iimrddilqqluuoianrr.teeTrhsseosffe2200c00ha8,r,mgmeasnanaparggiememamreienlntyt aarpepspptrroeodvveefddo caamnnpddlccooyomememm.iiltttetdefdtdo uiunandbdeierlrttiaaekkseecacneedrrtfaaiinexdexsiistasactcttiiivvmiipttiaeesis,r,wmwhehinitcc.hh Dreeurssiunlgtde.d tbtihnheeaiffpooruuelrr-ttthhafixqoqrucuahsraetraecgroeronofdoftf22a0$0n0e60d888,tr,hmaainiplpdlrr-ie.oq-untaa.axrxTibehbreee2snen0e0fcei8htoafxorffgii1$es1ta00cptrimmivimiiltlalliireooisnln.wyIwarneaslosattrraeeeldccfoootorrrdd2eee0mdd,0,pw8wlh,oihtyciehchehps-erprerlaiamictteaimdroinllasiyarebrreseillulaiialtttieieeldedstdyatoinndaapdfdrijxueu-setdasmxmaecsnehstaenstrttsgioomeesepmfmapoirlprmlooIyenyendeuteess-rt.rreDeillaaualttreeiadndngd T(lTir5ara3abnnimslsiipptloiolerristtoaaftntoii)roonnnsed((c$$o2C2n6o6drmmpaionilrldliaiootthnne)ia)r;;dnDD-dqiUusiapnrlataeslyrala2npon0ddc0G8laGrtera(axea5ppid2thhyaiimcccistliv((l$5iit11oi8en8s)mm.TiIhilnlellitosoonent)a);cl;hfHHaoerergaa2ell0stth0w8CCe,ratreheea(r(se5$ec99omarrmicdltiieloldliniieoosnnnr)c)e;o;ssuSStlaftofeeefdytsy,i,lnSSspeercceu(u-r5tria3ittx8yyamcanihnladdlrPgiProeronso)ctfetosciretloIiolnnindnu,SSseetgrrrnvivaciilccreeaassnld andadministrativeexpenses(517million), andresearc, developmeandt elated expenses (53 ($3 million); and Corporate and Unallocated ($2 million). These charges were recorded in cost and administrative expenses ($17 million), and research, development and related expenses ($3 ll). of sales ($38 million). million), selling, general @63 TTableiooffCClooennteesnt:s NOTES. Supplemental Balance Sheet Information NOTE 5. Supplemental Balance Sheet Information AmAcicclcolouounnnttassnppdaaSyy8aa3bbllmeei(ilinacnnluacdsedolafaDsueascdseeeppaemarrbaadtet3eer1ll,iin2nee01itt0ee,mmaiinnndtthh2ee0C0Co9no,snroselosilpidedatatitveeeddlBBsa.alAlaacnncccueemSuShlheaeteeet))diidnneccpllruueddceeissadtdirroaanfttfsopeaycyaaabpbillteeaololnnaddseemstamontdaaolofenfdS$$Ed85220 million million million at bothDecember31, 2010and2009 Additonal supplemental balance shet information and $83 million as ofDecember 31, 2010, and 2009, respectively. Accumulated depreciat at both December 31,2010 and 2009. Additional supplemental balance sheet information is provide i ion for capital is provided in the ablethat leases totaled the table that ff$oo5lll0loowwss.. Q Ot(Mhiles liorncs)orrentasses PrOPDeretephfpaerairieddceduexxriprpneeecnnnostsmeeeasssatsaanenxtddesasottheerr DPerDDroieedrfvieuavrctartetiidvvaeeinnsdacsosotssmhceettes--ticcanuuxsrreuresernnattncereceivables Pr"oTodtuacltaatnedrocthuemrenintssueratnsce receivables Total other current assets awe 2010 aw 2009 $ s 5sw5m5ss$ 63655077 282 9238 3i232i50o $ 5 Ww92 967 5$ _hm110 1,122 BIIunnvtveeyssttmmmeeenntthtssod CAAEovqsviutailimtlbyaeb-ltmleehef-oftoohdrro-sadsanaldleoether Total nests Cost method and other Total investments s "os $ 84 $ 73 2 i 21 11 a 41 19 5 i 6 $ 146 $ 103 LaPPrrnoodppeerrttyy,, ppllaanntt aanndd eeqquuipimpenmt--e--naatt ccoosstt: MLBBaaucnuihlddiiinneglrsysaadnndndildlesenqassueegihhpoosmlddeniimtmpprroovveemmeennttss CCMCaoonanpscsihttrirunucecetrtayiiosoanennsiidnnpeprqrouogigrpremessessnt AcGCGcraruopomsistsuappllrrlaoeotappseeeerdsrtydy,eppplrlaaennctatstanindodneeqquuiippmmeenntt Property plantand equipment-- net Accumulated depreciation Property, plant and equipment -- net s ms 21 $ 358 $ 291 6a 6069 6,321 6,069 1276 122% 12,769 12,296 `sss C4 656 627 10 157 149 157 025 T5340 20,253 19,440 fn) 2340) (12,974) (12,440) 5m sm $ 7,279 $ 7,000 OtODehtfheeerrrraeasdsssieenttcssome taxes CPuDPrroseodfhdeuurscrcteutdaannnindddcaeootrmtehveerarlitauinxneseuousfrarnfceeerireenccseueirivvaaanbbcleleepssolices OCOtateThsoehtrrasluorrtehnedrearssveatlsu:e of life insurance policies Total other assets s os os $ 648 $ 625 i m 143 171 nm mn 213 202 2m m 258 277 [-- i -- $ 1,262 $ 1,275 Othercreat ails Other current liabilities Accrued radepayables Accrued trade payables Pigs eihciesodgroTADOIOSOIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm s ws asoana $ 476 464 59/114 7175588..00005599 zane Migsohcivesadg OGatTIOOIOUSEHIAOIO20T80A_HSOk hom 1D/1DeD3r/ee2if0vfe1are8treirdveiinnaccooimmee.ls https://www.sec.gov/Archives/edgar/data/66740/O00110465911007845/a11-2060_11Ok.htm L3d369 DRREemeespsrtitlrvrouuacycttiteuvusreriibnnliggaabecaitcliittinoioenanssnsedwfiboildtinsgs 1628z7n27 PrEPPorrmpooedpdruluoctctyyteaaaennndbddoeoontttehhhfeeeirtrcscltalaaanxiiedmmswss.ithholdings 11113692267 DPPPreeonfpseoeiorrtnydananainndnddspcpoooosmtstheiteertteratitoixarrexeesmemsneenntt bbeenneeffiittss p21r%94)16 tDO"teeThfoeertrrarledtihnecrocmeutaexens tas TamS5102666 Total other current liabilities $ 2,022 36316 994 776 150150 2123 19%198 a41 227 ato410 vw $ 1,899 LoOOtnthhgeetrrelaibamibliiltniticieeossme taxespayable PrELEomompdnpluglocotyteyereamsenbdbineetncnehoefmfeiittecssltaaxiemsspayable CPCDaerapofpieditrtuaarclletldlaeeniaanssdeceoooombthbel.eiligrgacatltiaiooinmnsss ODbDDeeefeffeeerrrrrrreeeddd income income income taxes taxes Ot"hTeortal ter bilities Total other liabilities s os an $ 627 $ 611 2 po 524 491 mu 30 324 330 " 107 94 107 15 2 18 23 198 a 198 91 ] % 69 74 Tim vm $ 1,854 $ 1,727 o64 `TabTleoioffCCboomnletesnet:s NOTE. Supplemental Equityand Comprebeasive Income Information NOTE 6. Supplemental Equity and Comprehensive Income Information CaCotocmmosmmt,eownsittsthooc2ck3k2((,$00.05151,pp4ra4r8vvsahaallurueepspeaerrDssehhcaaerrem))booeffr33..3001,bbi2li0li1on0n,ss2hh3aa3rr,ee4s3ii3ss,aa9uu3tt7hhsoohrraiirzzeeesdd,,wawitiDthhec994e44m4,b,00e33r33,3,0015,56620ss0hh9aa,rreeassniidsss2uu5e0.d,.4TT8r9er,eaa7sus6ur9yrysshtsatoroeccskkissti.srereppoorrtteedd Decem31b,2e00r8. Prfemedsock,witoutpavale, at cost, with 232,055,448 shares at December 31, 2010, December 31, 2008. Preferred stock, without par value, of 10millonshare is 233,433,937 shares at of 10 million shares is stbrized bi ised. December 31, 2009, and 250,489,769 authorized but unissued. shares at "Thecomponentsofaber comprehensive income (lo) and accumulatbeedr comprehensive income (loss) atrbtabe 0 3M follow: The components of other comprehensive income (loss) and accumulated other comprehensive income (loss) attributable to 3M follow. AccumulatedOtherComprehensive Income(Los) Atributable 03M Accumulated Other Comprehensive Income (Loss) Attributable to 3M pCurMmiulliioansi)veransaion siment DDeCDeftebimfntianaeuednldadtbbiveeenenettefrfiayitntpspseleenansctisiuoioornnneaasdan,njudduspntpromoetsaeetlnritteziteirrdemmgeaeinnntt pp0llaasnn)ssaaddjjuussttmmeenntt CTDCoataesasbhlhtafaflinoocdwwehhqceeuddigtugyiinnsgmegocntiusnhurisiettrrriuleucmsmo,emaenupntnrtsreste,,hauweleirnnzesreeaiddalvligeizzaeeiinddngc(galoaoimisnnes)(((lo0oss5s))) Total accumulated other comprehensive income (loss) beat, Dec. 31, i2010 5 Ei $ 374 asm) (3,879) (6) a(32) Tse $ (3,543) beat, Dec. 31, oo2009 TM $ 122 amy (3,831) (9) Go(36) Taw $ (3,754) ``CYCoeoammrpspooennneednnettdss DooffeCCcooemmpmrpberehe3erh1nenssiivvee Income(Loss) Income (Loss) Attributaboi Attributable to 3M 3M Years ended December 31 Ne(Mttieillninosncso) mestributabieta 351 Net income attributable to 3M amo no 2010 Saws vam 5 4,085 $ 2009 3,193 $ om2008 va 3,460 CTuComuxumelfuaflteaictitvvee trraannssalattiioonn Cumulative Tax effect Cumulative ttrraannssllaattiioonn -- nneettooff taaxx En) 8 on) 213 288 (920) I) 3 (8) (2) 32 ws = =) 205 286 (888) DeTDfoeixfnienefefddecbbteenneeffiittppeennssiioonn nanddppootsetrteitirremmeenntt ppllaannssaaddjsuistmmeenntt DDTeaefnxfieienntfeeofddefbctbteaeaxncehfitppeennssiioonn and and postetvement postretirement plans plans adjustrcat adjustment - net of tax wa) aasy (68) (442) (3,258) 2 13 Liss 28 133 1,186 w(40) am) (309) am (2,072) Debtandequity secures,unrealized gain (0) s Debt and equity securities, unrealized gain (loss) 5 Tox effect @ Tax effect (2) Pigs eihcesodgroTADOIOBSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_11Ok.htm n 0) 17 (18) @ 7 (7) 7 ane 60/114 11775588..00006600 zane Migsohcivesadg Got OTIOOIOUSEHIAIO2O08T0_AHOSk Hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm Debtand equity securities, unrealizedgan (low) netof tax 3 0 a Debt and equity securities, unrealized gain (loss) - net of tax 3 10 (11) CuTCosaxshhefefllcoowtwhheeddggiinngg insruments, instruments, wreslizedgin unrealized gain (os) (loss) CaTasxhflfeocwt hedging nstruments, unrealizedgain os) -netof tax Cash flow hedging instruments, unrealized gain (loss) - net of tax a) 12 6 (130) 124 @ Ey (2) 50 (52) i w) 7 4 (80) 72 "Totalcomprehensiveincome(ss)attributableto 3M Total comprehensive income (loss) attributable to 3M sams ums sot 4,257 $ 3,100 $ 561 iRRneecccollmasesss.iiffRiieccsaaltiaiososnniafaiddcjjauutssittommneesntnttosscsaarrmeimmnagaddseerttooomavvosoicidcddudomouuulbsbltleeecdocouotnuhtneitrincngogmiipnnrcceoohmemnppsrreihhveeesnsiiinvvceeoiimnneccotomhmaete eimteamsds ttthhoaattpaaereersaaolssnooarrneedccoporodrsedtdersaedpstpramatertnootffnnte.t 1eienxx2cpp)oeemninnsseee2.i0Rin0ne9tc,hhleeansiidsnnicfcSiooc7mam9tmeeiioslsnttlsaaitttoeoenmmepeearnnrtetn-iwwnueeg.rrsee(f5$$r5o332m0066lammciiciolulllmnioonunaplaprtreee.de-toaxth.e((i$rn112c99o0)770m8mmp.iriTlelllhhiioeeonnnssefaivfpteeeenrisr-nticao)oxnm)aiiennntd22h00pa11t00r,e,olS$a11te44sd11 tmmotiiplellinoeoesnxiopppenrinears-nteadpeexrp((eo$-5-s9m9t2u2rtmxeamtieimarieolllmuixononentnstaatfafteerer- satsahhxomo)wwionnn r2iinn0tt0thh9eei,oattfazanbbndllaeee$tt7iiannc9tiNNmuoaootirtlieelnaiol11n215gpaaarsiemna-)tmaoxoorrs(t$.izt5aC2tiaimosznhiolfolafilfoottnrwrahaainenftssdeoiigtrio-inotnnanxg(()asiisnensste2tt)0)r0aoo8bmbl.eliinTggtahateteiisooenna,p, esaanmmiosoriotfrntiizizaaantctdiiooaapnnrootoesfptfprirperortioiivoroiernrmdsseseeedrnrvtiivnceiexNpccoeooensstste1((2b.pbereRnene-eetcfaflixta))saaasmnnifddoiucnattsioanre0 caaeuamacrmtnoiioirnnntiggzssaatfftirooonmmeocafccnuceumutumarlcuatailutabatelseriddalooint(tghhNeaeorirntcc)eoo1lmmo3ps,prspr.erehCihemeananssrhsiiifvvlleeoywiirnncehcoelomdmageeftinufogrrlidndoessebstborttufamannaedpdnpeetrsqqouurxieiittcmyylsaaestsceseucilrfuyiirc$tiait2iteeimsosiwnlwsleeiarrorene nopportrotevmm-aidatateeerdfrioiiaanll f2Nfooorr0te2200011n12d00.9,,aRaaenlcdolsasan3ssssoisfhfhiodcoawwtninoniinsnttthohee faaaopuprppcetrriiooogxsnniimrrmaaaatnetteslslayyetc6$uo6rnimtmriieeillslaliittooainbnnglptperroeien--pttNaaexxormtffeaoornr1e232n0,0t0p08r8i.i.nmOvOteahtsrheitlemyrerrnreeetllcsaaltansessstfeoilfreiacaaaltotitisoosinnooaafddnajjpuuspssuttrmobmxeseniinmtdtssaitwawerleyireeb$ensun2o,totmtamrmiaxltlaieeotreenirfaiplatr.le. -IIwtnanicxtcohofmimonerec2atua0xx0mee9susaalanertdevonatotlrotaspnpssrrloooavvtfiiidodneedddffooocrrs include foreign include impact rom tems such as et investment hedgetransactions. translation relating to permanent investments in international subsidiaries, impacts from items such as net investment hedge transactions. but tax effects within cumulative translation does 6s 65 `TabTleoofbfCCoolmneteesnt:s PPurcuhasreooffcSSuubbshisiddiaiaarryysSShhaarereessaannddTTrranasfenrsosoffOfOwnweenrersrshhisipp IInntteerreessttss IInnvvoollvviinngg NNooon--WWhahlolllyy OOwwnneedd SSuubbssiddiiaarrieess iDDnutrueinrgertsththeioessaselneiccgoongnndad hvhalaiflfooff22i0n00J9a0apanan9dndatthhneetdfioisrststihhmaplaflooiffl2t200h1f1C00o,,m33pMManeeyff'feesccotiewdenedaarppsuuhrirccphhaassstreeoucoftfsuruseub.sbisAdidiaiarryrs yesssuhhlaatrreoesfstaahnneddstetraaanncsstffieervssioo,ffobowewmgnieemnrishhniigppin J(iJnuuStnnueeemrei22st00tso11m00toottha3eleMiC)gC.onomamBpcetpaciavanniuytyiseehhsaatisshneaJCwawohpomhalopnllalayynnodyowwrtnoeneesididnmesspuulbbiisfstyiisddtiichaaoerrnyyCtiironnomtlthhipeenagnrreieyggn'siifooeonnewsiitnnneidarndsihhdieioptiosnsuntrbus1toicdtiuittassrmermia. ejAasojsroiinrativtyroyelosvouwewdlnt,netoedefdtSshSueumsmeaicitattociomvtmiivootiet33sieMMrsL, iLbemeimigstiinteuienddniclnceaghnttaittninetygyeds 103M Company (Sumitomo 3M). to 3M Company shareholders' equity and noncotrlling intrest, These activities incltheuFodlloewindg: Because the Company retained its controlling interest in the subsidiaries involved, these shareholders' equity and noncontrolling interest. These activities included the following: activities resulted in changes + DDSuuurmriiinntggotmhhoee3ssMeec,coownnaddsHhtaarlalfnoosf2f2e00r00e99d,,oa wnwhohotolhllleyyrooswwunbnseeidddissauurbbyssi(iddrieiafaerryryrttehdhaa0t,, iihnenrttuerirnn,,aoo3ww3nnMeeddHaaC)ppootrrhttaitoonnwoaofsftthmhaeejCoCroiomtmpy,apnaraynty'h'sesrmmtahajajoonrrihittoyylooywwn,needd. `oS3owuwmnnweeidatd.os.mSSruouemmd3iuMitctooe,mdmwooraso33mMtMr7aana5lslpssfeooerroocreewwdnnnteteod1d0aaan7pp1oo.otrh5rteptiireoorsnncuoeobfnsft3i3d.MiMaHTrHhyCeC(.tr.reAaAfnesssrfraeerrdreestseouuslhltuteolorfeefidthniheneastarr3aadMnenscsraaHeccaCttsioo)nnti,h,na3Mt3M'wM'sasCseoefmffmfeeapccjtaotiirnvviteyeyo,owsrwhanntaeherrercrsshhtlhipdaienisnnw'SSehuuqoummlliiyitt,toyomanmodo an inreaisnnoncotrolling interest of S31 million i thesecond aoff 2009 3M was reduced from 75 percent to 71.5 percent. The transfer resulted in a decrease an increase in noncontrolling interest of $81 million in the second half of 2009. in 3M Company shareholders' equity and + DD(Cuuorrmiinpnaggnttyhh'eesffimirrssott qqrutauroterwrnooifef2d2e001S10ru0,m,mimatjaoojmoroiritt3yyoMo,wwntnreeaddns33fMeMreHHdCCtwiwhsihncichhe,, uarss 3sa0rreeSssuuulmlttiootffotmhheoet3trrMaa.nnssfIfeenrrabadboioroveeno,owwSnunemedditaoppmooorrtt3iiooMnnoopffutrhhceehased pJpCoaoorprtmatiinopoennasnoeofyfY'sietssnmssaahhnjaaodrrreeeintssytehhoreewilldndngbbedyyitSittosusmnanooiotnnocctmooonnptt3raooMyllsli,ibnntorggatniinonsttfSeeerErreIerseost,d,fSSth1uui7mms4iiitntbootemimroeolsoEEt tllJoeaceSptraucincmeIIisntneoddmYuuesostntr3iie(Msse,,.pLLpInrdtdo.a.xdi((dSmiEtticSIo)ln,yb,bEyS6ypu3pamImayyiiitinlon)glmgococna,a3ssMnhhodopffuS55r1.c.8888h.abbsiielllldiiooann `Jmmaiilplollaiinoowenns,,enrreeYisseeppnneeSccrauttniimvvdsieeltelyynho,,tbmebairoaissn3eepgMddiownontnaosaaapppniplnolicitccreaaepbbalsaleeeydaeefbxxrlccoehhmtaaonn7gg1S.eeE5rrIpaaoettefrssac1ae7ttn.4ththba0aittl7ltiiiSomp)nee.J)r.acpAAeassnnteaTsrreehessYeuulcelttnaoosf(afhpthphpaeerisosdexaittmrsraaaanntssreaaelccysttuii$loot6nno3ssf,,mt3MhiMel'lips'osunreccfaefhnecadcist$ievv1eeo8f8 roSSwuummneieittrosmohmmiopoioIi3fnMtMnhSeussdhphmaauirrrteeeocssmhfafrorsroeo3mmMfSSiwEEIInawswaaiannsscbccrcyelleaaatssshdseeiindffoiifetrddoeamaspsaa7ayn1na.b5vinlepevsetetorsSciteiEnnnggIt taaowcctta7iis5vvciiptoyyenrsiicnniedthnheteer.ceTcodonhnsneoosnclo-ailisdcdhaaatspteehaddidissnttavaasettseaetmimrneeegnsnutatlnootfdfoccffaaitshnshhaenpffclluioonrwwcgshs.a.acTsTiehhveeoify in he drfreiesrmcstrtaeqqianusudaeertairenorrnofoofttfnh2c2e0eo01pn10urt0.rr.coTThlhahiesenessgeefiittnrrnaaannntscsaaeeccdotrtibifooeynn2ssst7hrrt8eesnsumoilttdeleldpoaiinnynaisabnnnlheiinentcocfrreSeasEasIseqwiinnuas33aMcMoCronCofstomi2dmpe0e1parr0ean.dnyynsoshnha-arcraesshhhooliddneevrresss't"eincqgquuiatyynodofffi$n$22an22mcmiinligllliaoocnnt an3d ivity in and a t he decrease in noncontrolling interest of $278 million in the first quarter of 2010. + DuDirusirniangngsttahhceesiesoecnco,onn3ddMqquHuaCertbererocofaf2m20e01w100h,,ommlaljayojoroirwittnyyoeowdwbnnyeeddtShSueumCmioitmtoopmamnooy3.3MMThttreatnrrsafneasrfreenrdiseitsssufnilnfieteeerdreeisrsnttiaiennn33idcMMrHcHaCCsettooin333MMMHHCCCo..mAApsasanaryeressuulltt ooff shareholders quanid dtecreyase in oncontoling this transaction, 3M HC became wholly owned by the shareholders' equity and a decrease in noncontrolling interestof Company. interest of S24 mill in hesecond quire of The transfer resulted in an increase $24 million in the second quarter of 201,in 3M 2010. Company F33iMMstsahlaosloafaccqq2uu0iir1re0edd, ttihnhearredemmdaaioinnininna,ggnndoinsoccuosnnsterodclliinnoNgoitirnnetter2ireessittrnoOofcfltaoppbrlreeevrviii2oou0usn1sl0lyy3mMfaojsorcrtiatyyiorowdwenecddonssturuobblssliididnisagrryynffeoorrraasnn iiimnmmmCaotageteernriitaallnmacm.ouovunintt ddeuunrdirneigrnthhgee oafoifcfrfqfseeutrriharaainnlnddfgoitinhnfeD2De0re1cec0mee.ammiIbnnbeiearnrd2g2dn00iot11ino00ccncoo, omnampsrlodpeliltseicetneuddgssiaaensdsfeericcnsooNtnnddoi-stnsettCee2opp,gimmenenerOtrggcIeeteror.fbfoeoTrrrht2tehh0e1e0sssaua3mmlMeieanaagmmOcoqcouutuniorntbetdeepraer2rcc0oou1utn0tstsrttonaalnldeidniisngnggsinssthaheanarredreDstaeasicsntethChmeeotbgteeeenrnnd2dte0eIrnr1ocof0.fffvederiera,,cathrheeteerarncsehdbyieynr oncointnerestt asrsocioatedlwitlhth iCognentgIn.trasacionsaeprscnidning 02510wilh respect otheamount impacting acquiring the remaining noncontrolling interest in Cogent Inc. The resulting October 2010 increase and December 2010 decrease in noncontrolling interest associated with the Cogent Inc. transactions are presented netting to zero with respect to the amount impacting Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm oma 61/114 7157588..00006611 zane Migs heedOTIOOIOUSEHIAOIO20T80A_HSOk hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm oncontrollingners in theconsolidatedsatment of changes incquiy. However, the December 2010 ransaction esd in an noncontrolling interest in the consolidated statement of changes in equity. However, the December 2010 transaction resulted in an immaterial raster from noncontroling interefsot 3M Company shareholders' cau. immaterial transfer from noncontrolling interest to 3M Company shareholders' equity. "The follablowsumimanrizges the effectsof these ansacion o eq atbtabl o 3M Company shareholdefrosrtherespective periods. The following periods. table summarizes the effects of these transactions on equity attributable to 3M Company shareholders for the respective oN_ (eMmtilileionncs_ )omeab_ u _ o ______ ChNTTrareaatnnnsigsnffeceeorrifmnfor3eommMatCt((rtoiiob)m)uptnnaoaobnnnlcecoyontnosttrhr3oaoMlrllcliihnnoggldiinenttrerseresqts.tuiyfrom netincomeatbutble 3Mand Change in 3M nCsomfpafnoy msh(a1re)honoldnecrosn' teoqluiitnygfroemrnsett income attributable to 3M and transfers from (to) noncontrolling interest we 2010 ST oam $ 4,085 a43 wm 2009 5 am $ 3,193 0)(81) sams aw $ 4,128 $ 3,112 C66 `TabTleoofifCCoolmnetreenst:s NOTE. Supplemental CashFlow Information NOTE 7. Supplemental Cash Flow Information C(aMsilehlinoinsns)come xpayments CCCCauaapsssihhhtaiiilnnnicttzeoreremedssetitnptptaaarxyyemmpsteaeynnmttssents Capitalized interest mo 0 no 2010 2009 2008 sow vo msTm $ 1,509 $ 834 $ 1,778 m 6 196 201 236 196 " 7 x 17 27 28 iIInmnpddaiivvcitiddsuu,aawllhaaimmcohouurnnettspiirnnetsthheenetCCeodonsnsosploailriddtaacttleeydd.SS"ttaaOttetemmheeenntrtoofnfeCCt"aasishnhFtFlhlooCwwossneesxxoccllluudddteeettdhheeStimamtpeampcetnstooofaffaaCccaqquscuihsisiFittliisooonnwsss,, wddiiitvvehesistntiittouuprreeerssataainnnddgeeaxxctccihhvauintniggeees rfianete 2010,2009 2nd impacts, which 2010, 2009 and 2008 includeschanges in abilies are presented separately. "Other -- 2008 includes changes in liabilities related to IMs restructuringactions(Not net" in the Consolidated Statement of Cash related to 3M's restructuring actions (Note 4).Flows 4). within operating activities in TTrraannssaaccttiioonnss rreellaatteedd ttoo iinnvveessttiinngg aanndd ff'macainncigngaacctitivvititiieesswwitithh ssigniificgantnnnoonn-i-ccaasfshhccioommpcponoenanetnstsnrareet1ass ffoolllloowwss:: + DIDnuudruriisnntrggie22s00,110L0,i, .SSuu(mmSiiEttoIomm)booy,p33aMMyippnugurrccchahasashesodefada pp3oo.8rrbttiiiloolnniooonffiJiatsspsashnhaearsreeesYhheeenllddanbbdyeyniittssenrpooinnnccgoonnnttrrooolllliinitgneiinntpteearryeesesttb,,eSStuuommiSitEtooImmooof El1e7lec.4cttririilcc lo aJcJIntaaippdvaauinnsteteyrssieeeisnYY,teLehnnet.dc. o.TTn(hhsSeeoElccIiaa),dssahhbtpypeaapdiiaddsyaiaansgeatcreaesshmluoloeftofofcn5tfa.tts8thhhebefippllluoiwrouscn.hJarTashpecaoonfrfehSsSueuaemmYieistonommmaenooofdat33ehMMnetiepssruhiarnancrrgehesainsdfrterooofmamiennSSoaEEtnerIcIepwwdaaaysbsaycbcllltaeashsstsoiniffSoiieeEeddIpaaoassfyaaa1nnb7lii.e4nnvvbteeoiSssltltEiiionInnggvas cnacocontniisvsiiidddtyeer"rieePnddutrhnnceoohnnca--osccneaasssoohhflSiiidunnabvvteseesisdttdiiisnntgagaartaneynmdSdhefafniritnneoaasnfncaccinianndsgghTaafccltrotiiwvvaisitt.yynTiihnonseftthOhrfeeewmnifeeiasrristnrst dhqqeisurupaoratIfentrtroheoerftfe2ps20eut01sr10crI0h.n.avsTToelhhvifssiinniiagssnNddcoeeessndcc-rrbiWiybbheetohddleiinynnOoNNwtoeonttpee6ae6ydainbSulttebhhseteiodssiSecacErttiIiooewnsn.as entitled "Purchase of Subsidiary Shares and Transfers of Ownership Interests Involving Non-Wholly Owned Subsidiaries". + OAAlnbloseion a2icnq0u2i10s0i1t0,i,onaa.ss discussed discussed in in Not Note 2, 2, theCompanyrecorded the Company recorded a a financed financed lsilofy1.7 liability of 1.7 billion billion Japanese Japanese Yen Yen elatedtothe related to the AA- One acquisition. + During 2009 3M recoracdaepdt eae st and obligationofapproximatSel5y0millon related oan IT investment with aDuarimnogrt2i0z0at9i,o3nMpreecorrodifesdoeavedcnapeitaarl sleaasned acsosnettriabnudteodbSl6ig0a0tiomnilolfioanpportoxsimU.aSt.edlyef$i5n0emdbiellnieofnirteplaentesdiotno apnlnITininsvheasrtemseonfttwheith `aCnomapmaonryti'zsactioomnmpoenriodstoofckseven years and contributed $600 million to its U.S. defmed benefit pension plan in shares of the Company's common stock. o67 `TTiabblleeooffCCoomnteenrts: NOTES. IncomeTaxes NOTE 8. Income Taxes Tacome Before Income Taxes Income Before Income Taxes oU(nMmiitlleieodnsS) ater InUItnTneteoimtrauentdlaitSiootnanataells Total PPrroovviissiioonn ffoorr IInnccoommeeTTaaxxeess pry (Millions) Migs ehcesodgr Go ADO1150 1OOTASA. 2060_1Ok https:llwww.sec.govlArch ivesledgarldata16674010OO1104659110078451a 11-2060_110k.htrn awe 2010 sam $ 2,778 29m 2,977 --fl $ 5,755 me2010 awe 2009 so mm $ 2,338 2201 2,294 -- Rl $ 4,632 02009 ume 2008 so ms $ 2,251 2857 2,857 --$ 5,108 om ane 2008 62/114 11775588..00006622 zane 1/13/2018 CuFredleryalpayable Currently payable InSFStaeteadttmeeeartail onal International DefFeerdreerdal Deferred InSFStaeteadttmeeeartail onal Toul International Total Migsohcivesadg OGotTIOOIOSEHIAOIO20T80A_HSOk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm s wos ss 0 837 $ 88 $ 882 73 i is 73 13 14 6 ss 20 796 586 820 ss a as) 55 " ss 3 43 ai 156 ] (212) --i -- ll -- 1,592 $ 489 56 156 1,388 $ (168) 34 6 1,588 `ComponentsofDeferred Tax Assets and Liabilities: Components of Deferred Tax Assets and Liabilities pDOlrielliofynse) mrxrameesd: De"AfAeccrEccrmrreuupdaalltloassxynneoaoetstbseccenuutsrer:refenintttllcyyosddteesdduuccttiibbllee PMirEPsormcdolupdlcluoactytnenacenodbduetsonhtsehefeeirrtcecclrolaassitmmsss PSPetenoMnscsiiiksoobcnnaelccslooaassndttesscooumspeancscrautailosn NNFSeotetrotecooikpgp-enberaratastateixindngcgcrc/oecadmaipptpisietalnlsllaotoissosnccaaryrfyoforrwwaarrddss GrOoFtOsoethrdereierg-f-nnenteearttxdcarexdaistssets TVVGoatlaraoululssasdttoeidonfenfeeararllrrleooddvtwaataxannxacceaessssets Total deferred tax assets amo 2 2010 2009 s $ 196989 148 14s175 s@75o02n14 437 m"1281 Z2,a41214n316) Tam(128) $ 2,283 5 168 $ 168 16160 150180 52852 an473 559 26286 7> 2,178 2(23) Tams $ 2,155 DDePeferfrerdeataonxrdliradbbbiieelilrutiideis:n:csuratnce receivables InAPAtrccaoccndegeuliencbrttalaetenedaddmddooerethptprierezrecaciitniaaisttouiinoroannnce receivables Intangible amortization TotOOafltfhdeeerrfe-nrneretetdta ibis: Total deferred tax liabilities s $ (59) (695) a) sl (823) -- ws (1,577) s 0) $ (80) om (571) 62) rt (662) (5) i318) (1,318) Net deemed tax assets. Net deferred tax assets s nes 1 $ 706 $ 837 "TTLhhieenbneeit dsdeeffweeirrtrheidnattahsxesaCseosnetstsolarirsdeanitneucdlduBdeaelddanaacseccooShmmepepoto.nneSenentstssNoooffOeOtthhee"rrSCuCupurprelrenemntetnAAtssassleetBs,a,OlOtahnthecererASAshsseseetsts,I,nOOftothrhemearrtCCiuournre"rnefntotrLLfiuisarbbbleilfritiideses,a, lnasnd.dOOtthheerr Liabilities within the Consolidated Balance Sheet. See Note 5 "Supplemental Balance Sheet Information" for further details. o68 `TabTleoofifCCoolmneteesnt.s Reconciliation ofEffective IncomeTax Rate Reconciliation of Effective Income Tax Rate SSSaatatttueuitioornryycoUUmS.eS.a.txtaxexsrra--atteenet offederalbenefit UISSInntta.teteermnaeiantsticeioooannrmacalehl aiitnanncxcdoeodmsme-eev-aetaxnlxeeoetpssmo---ef-nfnetnedceetrtreadlibtenefit RUReRese.sSestr.errvruveecestsesuarffiroocnrrghtataaacxxntcidoconodntnesitvinneglgeoenpncmciieeesnst credit MRMDeoeemisdetcriscuatacrirteeucrMMMinaoogndduaefecarrtnciaotiztunarsiteioron'nsAAdccettduction AADllollfmaeotecthshtetiiercvr-eMn-weoannretult fdawcitudree r's wx dedu rte ct ion Effective worldwide tax rate 2010 A 35.0% 12 10 03 1.2 on 6 @n (7.1) 02) 03 (0.2) 09 08 08 (0.5) pa 04 -10 2 2) 1.0 ah 3 08 (1.4) 05) 3) (0.3) E13 0% 3% 27.7% 2009 35.0% 1.0 (5.3) (0.3) 0.8 -(0.2) (0.5) (0.5) 30.0% 2008 35.0% 0.8 (4.1) (0.5) 0.8 0.4 (0.2) (0.8) (0.3) 31.1% UUrnnugddceeorrvaeFFreeaddgeeerr,aalml apprrnooyggrrcaaommmp((M aMneedidicicscaairrneecM lMuododidenregnrni3izz,aatrtiioeonncAAeccitt)vttheauatxtdw.waaassdevseatstanabtblaliigssehheesddubttsooiedenync.coTouhurreaaggteexccaodmovapmnatnpaigeaesotonofpprhiroeovesviuidsdbeesririedrtyiwerperaeespsrcleirsmciirpintpaittiooennd by drug coverage, many companies, including 3M, received a tax-advantaged subsidy. The tax advantage of the subsidy was eliminated by Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ene 63/114 11775588..00006633 zane Migsohcivesadg GotOTICOIOUSEHIAIO2O08T0_AHOSk hom 1/1{tR3hhe/ee2c0PPo1ana8ttciiieeinntsttPPorrnootAetccetticootfnia2xon0ndd10AAf(ffofolrrlddcbhattbltvpleeeslC:/Cy/aw,arwrteewhA.Aesce"ctct.Ag((HcoHv.R,/RA..rwc33hh55iiv99ce00hs))/,ew,ideinngrcacelrlu/uedddnaiiatnnacg/gt6me6mod7d4oii0dnf/i0iMf0icac0ara1tct1iih0oo4nn26ss051i9in01nc.c1ll0uAu0dld7tee8dhd4o5inun/atgt1hhh1eet-2hHH0e6eed0aai_lm1tlhi1n0CCaka.tahrirtemonaannofdd EEiddsuauccaattiiooanndvantage dpRdoeoeerecsisoonnodcotiitnlaitawaktkhieeiocnechfAfftecchctetoAuufncnt2tti0wl1220a0011(cs33iougulnlnnedecddete.irrvBethehleyceA,aAcuthstceet,,f"uI3AtMMcuwtrw')es,aawsnrirheeiiqqcpuhuaiitrwreeeedddretoterrineeracccootggenhdnieizaizenletM tthhhcaeearrcfueuhlllil2aa0cc1cc0oso.uuAnntltatiilhnnnogdguirgmepehlpaatachtceettsdeinanlixmtitsisnfuna'mbatinsaocdnniciaoislafalstrshttaiasttleetammaxeednantydtssvaiinnttahhgeee orpreeteffrhllieeeoccdttseeiddniuiwnnh3b3iMM cT'hs'hsstihiffseiinnrAaadenndccuctiyciwatalila.osssnttasaittigeenmnmveeaednlnt.utseBs,r,ehtcheaeeuccshheasafnnuggteuearieionnanllana.twwitceirrmpeeassutuelnldttoeenrdde-tcniinaraesaehrrheiedendauucclcottthmiieoocnnatoraoexfftlctihhaheebavivlarialtglituueoeese aMoonff'tdthshreeecclcaaootmmemidpnpatgaansxnyyissn'us2db0desfe1idfe0eiroerrrsfeeaddprrettaoaxaxlraaiessmassadeetyttrereelllayatteedd S84 millon, or 12cents per ied share to the subsidy. This reduction in value resulted in a one-time non-cash income tax charge to 3M's earnings in 2010 of approximately $84 million, or 12 cents per diluted share. a`WndhWi2le0t0thhh9eeprieprlreaectlceeeddditeinnogg ifeteermmatiinincocrrneesaassaeecddtsthh.eeIeeff2fec0c1tti,vietvttiaxesxwrraattsee,d, utthhcee mmroiosmstatsrsiligygnnioifftiicchaaenntt2ift0ee1mm0tathhxaatbteddneeeccfrrieetaasssoeeddfnttheheetoeepffefrfeacetticivntgeittvlaaoexsstraeetsepainrbbaotlthh 22o00ff11s00et. Frbbacnyydiag2vvn0aa0llsu9uuaabrttseiiiolodannitaeaardllyll.otoowTwihaannneteccreeanrrnaeetsssiocuuntlltaioinlnngtgsaxfrrueoorsm.mIdttnehhse2ec0rcc1ioo0brr,eppdotohrriaiansttteewhaaallssieigdcgntunmiemoeenpnnrtotimftarNaarnnoislyaosctto6iaoctnhisecttt2hhet0aad1tt0oaa"lltPllanouoxrwwcbseeheddantstehhefeoeCitfsCoooSmmufbnppseaiatdnoinypaytre0oyraSiitnhnianccrrrgeeealasossaesenstietdsssToporwaawnrnetnsirefasrelslrhyhsiioppofffoosfefat `dfOoOewrwednnieugerrncsshhstiuiippbsosfIinnodetibeaerreeyssn.tTfIvnhioveldotvylrvaieinannrsgg-aocNNntoi-oonynn-e-saWWrahrhoeeolfldlflyeycstOcOirwwivbnneeaeddxdinSSrutuebhbssesi.idsdieiacartriiioeesns"".o. fAANddojjutuesstm6tmeennettnisttlttesoodiin"nPccouomrmceehattasxex eserves andthe Domestic Manuficturer's of Subsidiary Shares and Transfers of reserves and the Domestic Manufacturer's deduction also benefited year-on-year effective tax rates. ASAsIsSoofmfDiDellecocenem,mbSbe1er3r 33m11i,,l2i20o01n10,0,,etnhe$CC4o0om9mppmaannyiyhhaalddhtteaalrx eeefifvffaeelccouttaeetddinfofoenddeesrrolal,w,asstntaaettese,,)aa.nnddTnihnetrefrtendoaentriaoalnloaopleporrpateairtantgiinlnogsllsoocssassrccyaaorrvrryeyorovsveerwrsioloffxsapppprrpooarxifimmeairtatetwelleyyenty oyy$nee1eaa5rrysm,,tithlhleeoieorssnwt,aaiet$te1ah3arlfmtreirlilffniiiodvveneef,ittnaointtndeecn$a4yyre0eya9arorsmsv,,eiaalrlnnpioddenrttihh(oeebdemm.faoTajrhjoeoerrivCittaoyyloumofapftiaiionnnntteyearnnlhltaoistwioonapnnaarlcleaoasff)vt.eerTrisahsdSeevv1efene2ndd8eyyremeaiaallrroslpiwwoeinrittahhvtaittnlhgueealtrroieesommsnaacaiialnnrliironnywggoavniinecnrtteesaerrgwnnaaiailttlinoiesonxtnap)clireeeexxrppaiifnrrtieionrnfggttwiihnnesnety one year or with an indefinite carryover period. The Company has provided a $128 million valuation allowance against certain of these oftebrerreedsaizseds.et based on managements determination hati more. kely-toht nth.a he sxbenefits related 0 thsessets will deferred tax assets based on management's determination that it is more-likely-than-not that the tax benefits related to these assets will not be realized. "eTThxheceeCpCotomimopnpa,antnyhyeffiCilloeemsipinnaccnooymmeettoaaxxelreotntugmernrssinunbtjthehecetUU.1S.S.U..ffSee.ddefereradalelrjjauulrr,iissddtaiitccttiiaoonnd,, lnaondcdavlva,aroriioouuosssnas-ttaUet.ess.aaninnddcfofoomrreeeiiggannx jfueurrisxsddiiaccttiimoonniss..WbW niytiathhaftxfeeawwuithoorintises Toryearsbefore 2002. exceptions, the Company for years before 2002. is no longer subject to U.S. federal, state and local, or non-U.S, income tax examinations by tax authorities "fTTohhueretIIhRRqSSucacootmmepplolefett2ee0d09itt.ssfTfeiheedldeCexoxamampmianinnaayttiipoornnootofeftsththeedCcCoeomrtmpaaipnnaynR'yS'sspUUoSs.Si.t.fifeoedndeserrawaliltiihnniccnootmmheeestetaxxarxreyetuerasnrssffaoornrdttehheefyeyeearardrs2i200o0t05hetthharrdoomuugighhi2s20t000a77iivinehtahepepeals Cppforroouomcrctephesassqnuwwyaiirt'tUthhes.trtShho.eeffII2ReR0SrS09add.luTraiihnnergctCotihhmoeemnffpuiigrxassnt yqqtpuuaruorttfeeirsootoeftfrdh22e0c01ee102r0.t0a.0i8DnDyuaIeRriiaSnnrgpTotthhhseeietiCfioisornstmst pqwqauiatnuhrytienaprrtoohofrtef2es20est01t1t0ea0e,dx,ctytrhherearIInsRRSaScnIodcRoSmepmpnolstpeeilretteitedeoddninsiittsosfofftirihee2ell0dda0dee8xxmsaainmmndiiinsentanratattiiteoiovrnnoeeodfafiptntphfheoeeals ThtCRheoSeamfadodpmrmiannifiynssi'tssUrtU.raaSt.t.Siivv.feeefdeaaedpprepaprelaealaillisnsnccppoorrmomoecceeaestssaxwwririttetuhhtutmtrhshneffIoIoRrRrSSttdhhdeeuy2ure0ian0rg8srt2tyhh0eeesa0iesr9.eccToanonnhndded2C0qq1oua0ma.rrpteiatrnosyoffpa22ri0o0c1t10ep0.sa.teCCtduoucrrdreeterhnntaattlitynt,,IettRhhSeeRCCpSooowsmmiiptlpiaolannncsyyomfisopsurlune2ndt0dee0er8rtcseaxcxnaxadmamieminaintntaeaitrtieooidnnoinbbnyytooftthhee 2htI0hRe1eS0CC,ofoomtmrhpiepatsanTnURyyS.fhSfo.aorrsf2e2nd00oe00tr9a9bplbriyynotcpthoohemseeeeednntdaadnxooyfrfetsttihhugeernnififsiisrfcstoatnrqqtutuhaaaerdrtijyereuraosorftfs2m202e010n1101,t19,sanatnndhddef2foCo0ror1202m0.0p11Iat00ibnsbyyyan'txtthhsieecipenpnaddtoeoodfsftththhaieetfotfthrirrwesshtotIqRiqucnuSaahrwrttteheirlerlCoocfoof2mm200p1p12al2e.nt.eyAAisstsosnofeofxDtDaemeacdcieneemcautmbiaoetbnre3elo31y1r,f, reserved 2010, the reserved. IRS has not proposed any significant adjustments to the Company's tax positions for which the Company is not adequately D2uD0rui1rn,igngtththheCeoifmisrpsttaqqnuuayarprtateeirrdooffh22e00a1g10r0,e,tethhdeeuCCpooommnppasansnysypspamaiieddntthhseefaogargrreheeee2dd 0pupo0onnaaassysseeessassm.meePnnattyssmffeoonrrttthsheel22a00t00i55ngttaaxoxoyyteehaarer.r. DDpriuonrpingogstetdehsessseeescosnmcdnqtqosuuaaarnrtreirsodiofnfg. fs2foru0omc1mh0t,ahthtehe2es20C000os55mttpehharrnoooyrnuuugpgphaht2io2d0n0t11h00eefxeiaxagnmaremireneidanstoualitpiuoootnnnisosmanmsarsaesyysunslnmoiotentnbgbteesmmfaoarddteheueun2n0tii0l 8aa fntax y final sgrment irschedbetween ear. Payments relating to other agreement is reached between th Company proposed asse the Company ndssm and heents the TRS on arising IRS on such assessments or upon a fmal resolution resulting 69 `TabTleoofifCCoolmnetreenst:s fafrcootimmvittthhyieeandasmdiemnviinseitrsrtarLatitSivv.eeasatpaptpepeaallns ppfrrooorcceeeissgssnoourrrjjuiudddiiicctiiiaaollnsasct,toionn.. In In addin addition tothe to the US.U.S. federal federal examinatitohne, examination, there ilolimited is also limited suit audit activity in several U.S. state and foreign jurisdictions. 3`3MVCaunatrnitecicinippattath,teeessCccohhmaanpngagenessytsontohtoheteCCoabomlmpeaponaryney'a'sssuounnncaceberlrtytaaeiisnnttixamxatppeoosshiiteitaoomnnosdudunueetb1totyhtwheheilccolhossitinnhgegoiofftlthheeyvvaafrroiirouuussnauradueidctiotyygeenaairssztmmeaexdenntbtieionoennfeeiddtsaabbwooivvlee.i. ncrease oCrudrercenetalys,etdhueriCnogmtphannyeixstn1o2t ambolne ttohrsesasorneasbullyt of th angoin income sx uthrityexaminations. estimate the amount by which the liability for unrecognized tax benefits will increase or decrease during the next 12 months as a result of the ongoing income tax authority examinations. A reconclstonofthe beginning and endingamountof grossunrecognized tax benefits (UT) isa follows: A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (UTB) is as follows: Federal,State andForeignTax Federal, State and Foreign Tax oGrmosesUTD anes st amar (Millions) Gross UTB Balance at January 1 a 5 weESaeWSumww 2010 618 $ 2009 557 $ 2008 680 Aiton basedon apositionsrelated othecurntyear 8 1 126 Additions based on tax positions related to the current year 128 121 126 Pigs eihcesodgr Go ADOIOSD IOOTASA-2060_1OkMo one https:llwww.see.govlArehive~ledgarldata16674010001104659110078451a11-2060_110k.htm 64/114 11775588..00006644 wn sh TOTES 1 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm dtr rsptr ry ps a Additions for tax positions ofprior years `RRedeudcutcitioonnssffoorrttaaxxppoosisittiioonnss ooffpprriioorryyeeaarrss SSetetttlleemmeennttss Ror fpsst fs & @ @ Reductions due to lapse of applicable statute of limitations 142 a(1s6y1) 6(511) (54) 164 a(17m7) ---- (47) 98 a(1s8o0)) a(1o01n) (66) [ET ------ PE Gross UTB Balance at December 31 622 $ 618 $ 557 Ne ping heii i D1 sms es ow Net UTB impacting the effective tax rate at December 31 394 $ 425 $ 334 elsmutof copied bos spins wd fs elie ity S04 mils of The total amount ofunrecognized tax benefits that, ifrecognized, would affect the effective tax rate by $394 million as of Di Ste,Sesion sf be S54 ml sfDon SS Te ring Th es December 31, 2010, $425 million as ofDecember 31, 2009, and $334 million as of December 31, 2008. The ending net UTB results ins prome ee, Sd td from adjusting the gross balance for items such as Federal, State, and non-U.S, deferred items, interest and penalties, and deductible etOF ms pr of Com i: MOO Cab iBeCom taxes. The net UTB is included as components of Other Current Assets, Other Assets, and Other Liabilities within the Consolidated fret Balance Sheet. Tosco rst nee net aoevs boca cp TeCopy pid The Company recognizes interest and penalties accrued related to unrecognized tax benefits in tax expense. The Company recognized ea es es ais nf on iofet nt in the consolidated statement ofincome on a gross basis approximately $9 million ofbenefit, $6 million of expense, and $8 million of le S00ao pean Dare 33010 Det 0ser ei expense in 2010, 2009, and 2008, respectively. At December 31,2010 and December 31, 2009, accrued interest and penalties in the nese mm losmpi ihc e Toy consolidated balance sheet on a gross basis were $52 million and $53 million, respectively. Included in these interest and penalty ee teso is Ey Bey a br PoE amounts are interest and penalties related to tax positions for which the ultimate deductibility is highly certain but for which there is ye eth bi,Def pe of rt nr Ot re ais uncertainty about the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest and penalties, ae of et iy pos st ok ol Pin ok i wevePepto the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of ym mem cash to the taxing authority to an earlier period. Dug2010, Comprcontd 55min US. nto pei ls 5 illo pest During 2010, the Company contributed $556 million to its U.S. and international pension plans and $62 million to its postretirement fo EE rs mnlt Fr pp he plans. During 2009, the Company contributed $1.259 billion to its U.S. and international pension plans and $133 million to its mS. Oe mnSoa es ott tof Co's monk 3 Corp' postretirement plans. Of this amount, $600 million was contributed in shares of the Company's common stock to the Company's FACETS.Sak rns.Dr 20 ComprcreS21 mT US mnspe principal U.S. qualified pension plan. During 2008, the Company contributed $421 million to its U.S. and international pension plans ED irs epsSores eon ero ee nr pe Sn and $53 million to its postretirement plans. The current income tax provision includes a benefit for the pension contributions; the Fr a a deferred tax provision includes a cost for the related temporary difference. Aus raft comin cpl smn deby, esSr cg A CH, As a result of certain employment commitments and capital investments made by 3M, income from manufacturing activities in China, reptile tttMnSr Taiwan, Brazil, Korea, and Singapore is subject to reduced tax rates or, in some cases, is exempt f~om tax for years through 2010, 2011, doeeTe sk che So it rcca 8 2013, 2014, and 2023, respectively. The income tax benefits attributable to the tax status of these subsidiaries are estimated to be $69 1 pr a 50 on ep id) 1200 SA lo opah) million (10 cents per diluted share) in 2010, $50 million (7 cents per diluted share) in 2009, and $44 million (6 cents per diluted share) hnin 2008. Te Comp ek ried ders cs nei ei sit io some tv cnr The Company has not provided deferred taxes on unremitted earnings attributable to international companies that have been considered ep as pap Et Ey ooo em to be reinvested indefinitely. These earnings relate to ongoing operations and were approximately $5.6 billion as of December 31, oe ay 3. ek tt reo ey Bele 2010. Because of the availability of U.S. foreign tax credits, it is not practicable to determine the income tax liability that would be oncn eeen payable if such earnings were not indefinitely reinvested. n70 Dhar Table of Contents [-- NOTE 9. Marketable Securities FE -------------- The Company invests in agency securities, corporate securities, asset-backed securities, treasury securities and other securities. The oe rm arora. following is a summary of amounts recorded on the Consolidated Balance Sheet for marketable securities (current and non-current). ct sw (Millions) Dec. 31, 2010 Dec. 31, 2009 UUS.SS..ggoovveerrnnmmeennttaaggeennccyysesceucruirtiitieess FFoorreeiiggnnggoovveerrnmmeennttaaggeennccyysesceucruirtiitieess Co: w is Corporate debt securities Commrene = ol Commercial paper te s = U.S. treasury securities fret 5 = U.S. municipal securities s 2u46es$ 32266 5522 280 154 55 -- 55 -- 20 -- a TTS. po https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 738.0065 1758.0065 65/114 zane 1A/1A3s/s2"s0tAe1ut8-tbboaamccokkbeeilddessseccnaurritesieu:s:ed CACBrarueeutddoiiimpttmocceaabnrritdldeereelssoltaasetnedrdr.ealtateedd AOstsEOhqtthuebeirpar mckeendt lease related scuriis otal ter secures Asset-backed securities Other securities total Migsohcivesadg Got OTIOOIOUSEHIAIO2O08T0_AHOSk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm 3 198 253 198 5 79 9 2 a 24 41 5 5 8 8 Ec 6 364 256 5 29 8 Currentmarketablesecurities Current marketable securities sum1,101s$ 7LT4)4 UFUoS.rS.e.giggoonvvegerornnvmmeerenmntetanaggteenanegcyeynssceeyccuusrireittciieeussres UCFCoSoor.rrpepoiomgrrenaatatgeesouddvreeebrtsntcmssueeerccniuuttrieratsgieeessncy securities AUUUsS..sSS...ttmmrbueuananicsickucieripypdaaslslescsceeuaccrruiutrisriete:siess.. As"CAsrAeueutt-dtobiomtamcoockbabeirildldeeselelsooctasunneridtrrieeellsaa:tteedd Equipment ese rested Credit card related Equipment lease related AOstsOhttheberarcked scuriis otal `AAsuscetti-obnatckeedsesceucruirtiiteiess total Auction rate securities s @s 165 63 $ 165 3 = 3 -- 192 mn 192 112 " % 44 94 3 a 3 -- 1" 3 144 317 o % 70 98 i 2 14 29 a-- 5 El ws 228 449 7 5 7 5 NNoonn--ccuurrrreenatt mmaarrkkeettaabblleesseeccuurriittiieess: s sos ws 540 $ 825 "TToottaallmmarakrekteatabbllee sseeccuurirtitiieess sues se 1,641 $ 1,569 sCCellcaaussrsiiitffyiic'csamttioaontnouofrfkmmaydrakrtkecetataanbbdlleeT sseeccuurriittiii eecssoaanscscued rruaretniotonoesry bonaonsnn-e-ccduuotrrrneennmtairsiskeddteeppceeonnndddeietnnittouunspp.oon1nmmmaaannnaaagggeeemmmeeennnttt'ssiniintnetienendnsddee0ddhhhooolldddiintnhggpeepsreeriicoouddr,,ehthseefor oTlsotoennclggueeerdirttysthhp'saapnnmeaooanxntieuemyraiyetteayearldryaaatsse9ooaffnmtdtihhleleilbqboauanlilda(ainntpcyeecssoh)hnee,seeitdtdwedhrtaiatl,teie,otntghhsreeoybysaasrrueeendrcceolaanalssimsziiefaidrekdgeataaisscnosnonontdn-i-catciuoudmnrersen.sntpItf,r.moAAxlatiDnDmeaacgetceeeemmlmbyeebnSertSrin33mt11ie,,ln2i2d0o0s1n1t0o0(,,ghgororolordssxst.h)uen.nvsAreeetacalDuliirzezieetciddeelslomofssobssreee3ssr1, 2mt20oi00tl0a9l9l,eo,dgngrar(ooppssprsreuou1nxnxrire)meaaalGlitirezzoleeysddsl$l9rooessmaseleiisslzliteoodntgaaa(llepiddnresaa-ptpoappnxrrs)oo,axxlwiiemmhsaoialtreteemlglayyrtou$Ssr11si22tuimmneirislelllaoiifloiomznnae((rdpkrrgeeeat-ixtana)bsxl,)t,oestwwaehlhiceildlueeraggeprrpsoorswossxeunirmnvereaeltoaeiltlizyzeme$add5gtegamraiiiinanlllssiotoinon2ta(a0pler1ded0-staaappxpdp)r.roo2AxxtiimDm0aaenttceeedly0ymto$$bt33ea9rl3e1d,$5 12mmm0iii0llllll9iioooannnn(iinpdn wr22ee00-r0t08ae8.x.)nG.GorGtrmooraosstssersrereraiaelalailizlziieeznde2dll0oog0ssa8ssiee.nsssCoooonnntsssoalafllessessouoorrrmrmmeaaasttutusrriituotiiedesrsouoofsiffemmmattrhaakreirkefketeietatatabbbslilleenesssfeeercccsuuutrrroiiittiitieesssw(wwFeeIerrFreeOn)nnomootetttmmmhaaotatdetee.rrriiSiaaaillniicinnne222t000h1110e00,s, eatamonatedarl2ked0de0a$$9b33lammenisdielllctliouootrnanilteiiinndes$5 a2acrr0lee0acsc9lsla,aisasfsnsiiifedfidiewedodeuraatessonaafovvttaamiihlaaarbbtlelceero-ifmafoolprrri-snesaah2lle0een0sss8eeic.cuvCureirotiistiinetescos,o,fmccseehhcaatunnrggoieeteisseasiimnnsioffnaligdirsuvvsapaellouteehneiwafillilrlesfft"llioanww, ftotihhrrsrtoouuotgguhhhta(noohF.ttIehFeermOrep)cceoromammrerpptyrhr"eoehhdeie.nmnSspsaiiinivvcreeemiietnnnhccteo.osmmeeem,,wawirktitehhtaaambmoleuonusentctssurities reclassified out of other comprehensive income into earnings upon sale or "other-than-temporary" impairment. 3332MM0,rreIevviieenwwss iivmmppaaeiDirrmemebesnnattsnstdasEsosqcomuiciaitatyteeeSddewwcniuithrhitiittss,mmawarhrkekeenttaadbbellteeerssmecicnuuirrintigiestshiiennlaaccsccoosrrddiaannfccecewwoittfioththnetthheem mmeesassuui rremmeen5ntr tg"gueuimiddpaaoe nnrccaeerpypr"rooovviid"deetddhbbryybAAaSSrCC Lct3ee2mm0op,poIornmravareryyspt""mo. aAAfensthttnesea-mmrDepcpeohobrlrntiadrareyyntndiismm"Epcpqaqauiiiirrtymmy.eeSnnSettcucucchhrhaiartrsigegnuse,nrrrweeeshsaueullntisszdiieenndteaaornmsuuinnndrrioeneacaglsliitzhnzeoeedtdcrlllooeasdssssusbicbefeiiecnieangttgrioerniecncocooforrtdmhdeeedeanimidttnrphtiaheiebrmutottehhaneebttrolaccsoo3"mmMtpefprmoreerphhoeetnrnhasseriiyvpv"eepoliirncnc"caooobmtmheeeearc-cthoaunn-ting component of shareholders' equity. Such an unrealized loss does not reduce net income attributable to 3M for the applicable accounting pteermipoordabreycausceltehetlhoes i notviewed s other-than-temporary:Th factors evaluated10 differentiatebetweentemporaryandober.than period because the loss is not viewed as other-than-temporary. The factors evaluated to differentiate between temporary and other-than- temporary include the an 71 `TabTleoofifCCoolmnetreenst:s pfprrtooojjmeecc,tteedd ffuuttuurree ccaasshh flloowwss,, rit credit rattiinnggssaaccttiioonnss,, aannddaasssseessssmmeenntt oofftthheeccrreeddiittqquuaalilittyy oofftthheeuunndderelrlyyiinnggcoclollalatteerraall,, sas wweellll aas otthheerr factors. "fTThrheoebmbacaonlnactnrecaecatatutDaDlmeecaectmuebermre331b1b,,e2e2c0a0ur11s00effoothrremmasasrkekeetrtaaboblfleetssheeeccsuurreiteicessubbrycmicoaontyntrthiraaacecvttseuuaalhl mmeataiuturgriihtt1yytaarrperseshphoaoywwnonbblbliegolaowtwi.o. AnAscwtciututahalmloumatatpturrueitpiraesyimmmeatnayytiddpieiffeffseelrr s from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. omens (Millions) we' Dec. 31, 2010 Due noneyearor less: s 7 Due in one year or less Ducafer oneyearthrough thre yeas 76 Due after one year through three years $ 794 796 Pigs eihcesodgroTADOIOSHIOOTASA-2060_1OkMo cane https:llwww.soe.govlArehivoslodgarldata16674010001104659110078451a11-2060_110k.htm 66/114 7175588..00006666 zane Migsohcivesadg OGotTIOOIOSEHIAOIO20T80A_HSOk Hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm Dueaetresyears roughfvyears Due after three years through five years 17 Dueafer fv years: 3 Due after five years 34 Tota marketable series Total marketable securities sen $ 1,641 3r3MWmhhaaasssseaat.ddbiiavvecerrksseiiffdiiseeeddcummraiartrkikeeesttaa(bblsleeismseeacctuureirdtitiifeeussivppoorarttffoollloiioofuo$of5fe9S$L21..66m44i11llbboinli)liooanopaasroiofmfDDareecyeccmombeperr3mi31s1,be,2d2e0o011f0r0.t. eWWritiethhsiitnn ittnhiiassuppotorotrmftofoboliliilooe,,clcuourarenresnntatnaadnnddcrelaodnnigtg:- term asset-backed securities (estimated fair value of $592 million) are primarily comprised of interests in automobile loans and credit "caArdA. wAitthDaeciermmbaerrk3e1t,v2a0l1u0e,otfeeasssshtabnac2keidlseocnur.itiescredit ratingswereAAAor A-L+, withthe exceptionof tosecurities ted cards. At December 31, 2010, the asset-backed securities credit ratings were AAA or A-l+, with the exception oftwo securities rated AA+ with a fair market value of less than $2 million. h33oMMwe'svmmearrakrckeuetrtaaebbnllteelssyeectcuhureisrtitiieehssoplpodoritrntffgoosllciioooiminnpccrlliuusddeesseasacuttcithioonnnartnaeteepsesrecccueutnritetiesosf thhhiaatstrrpeeoprprtrfeeossleeinnot.tiTinnhtteeerreeessstttsiiminnatiienndvvfeeissttrmmveaenlntutgegrraoafddseecccrreedidiitotaddeeneffaauuslltetscswwuarapepsss;;wr: 7ch$oo7mwmmpierlivlellehioroe,nnncsuaninrvdrdeen$$it55lnycmmitohilmlelleisioeornnehlaaoasstlodeofdinftDgDoaseeuccccoetemmimopbnrebiarseet31rele,ss23s1e0,2ct10h1u0a0rnaaennosddne22fo00pa00el9r9ec,derrneeSsst6ppoeemcfctittihilvvieasellnpyy:o.(rGGtprfreooolsuissoxsu.)unTnrahereeadaleliSiszz8tieemdmdilaloltoeslsdssoeenfssa(iwwpririvettahh1liiunnxe)aaoccaccfuuamomuufcDlutailoaettneedcdraaotetethesme3err1cbu,ri2eti0er1s 0are amcanonodmdre22pt00rh0e0a9h9,e,rner1ses2ispvpemeecocitnntiticvvhoeesmll.yye.SAAriesnslaeoottfefhDdDeetecosceeaecmumobcnbtedieorru3n31r1f,a,t2oe20f0s211e000c0,u,a7rauiutctictehtisisootennotraaaaltuteecedtssie$eco6cunrumriratiititlieeleissosnaaess(ssapoorrcceii-saatattexefd)diwlawientiddthh1$t0t8hhaesmuseeibcllbitaaoilnldaon(eupcnsreess-athlaavxvle)ebaobsereodenefnrDsinneeaxcacelemlooesbsdssiepnrpogo3ss1ibi,toui2ony0n10ffoorr pomorrr-dodedrereersst.t.hcLLaninimqqiu1uni2idedimdittiyoynfntfotoerhrrstvt.hhaeSlesi,sneeaucuaesucatchtlteliioyosnnev-acreoaernteydssh7e,aec2luf8rr,oiitfi3ee52s,0oii09ss7tS,0yptphiieccdsaaaeyllslyay.uppTcrthroioevfoniudvrneaiddtesbdbsyyseeoacadcnuniraaaituuticecetstdiiofoannwilippetrrdhootccaoeeessassudtchhataiuaotctnrtreeidssoeuentetssstotwthihsleeelaallopppoptlrlbidicceeaarabbscllceeeexitscnesetireeberdlesiesnttgnrrabittuleeyaaatt pre-determined intervals, usually every 7, 28, 35, or 90 days. The funds associated with failed auctions will not be accessible until a aSuncdceesnsdfiunlgabuacltiaonnceoscocfusruscotrioabnuayteesrcsufroiuncdsautideofthe autonproces. Refer to Nate 13foraablethat reconciles th begiming successful auction occurs or a buyer is found outside ofthe auction process. Refer to Note 13 for a table that reconciles the beginning and ending balances of auction rate securities. n72 `TabTle oofifCCoolnntteeenst.s `NOTE 10. Long-Term Debt aadShortTerm Borrowings NOTE 10. Long-Term Debt and Short-Term Borrowings "aTTnhhdeesfhfooollrlltoowweiirnnmggddebebbttobtablmleesorreeuffswolleefccittDinenonctreeermegssbtterstraet3es1s,,cii onncsliusdtc iendgotfthhtei hfeeffffeoclsn tosowoiffnnigneg :trersetst raaetesswwaappss,aa,s ooffDDeecceemmbebre331r1,, 22001100,.LLoonngg-fterrmm ddeebbtt and short-term borrowings as of December 31 consisted of the following: Long-Term Debt Long-Term Debt EDuap uD(Mrcesoiinlclpbrioiior psntbnsi)oodn(/tc 727o051u0miPplrilnicoipu nalEAum ri oosu)nt monn Currency/ ry Fixed vs. eEwuroifirged Floating EMMMeeueddrdoiiibuuuommmn---dttteee(r7rrm7mmn5nnomooteeiel(l((iS$oS38n4055E000ummmrioililslil)liooonnn))) USUUDEuSSFrDDlooFFFsiiiixxxneeegddd. 3EM300-e-uyydeeiuaramrrbb-ooto(nenrd2bmd5((0on$5mo7i7tnl55el00i(mdo$min8li0lEil0iuoormnno))isl)lion) EuUrSUUDoSSFFDlDoloaFFatiiitxxinneeggdd 3`EM0M-ueeyrddeoiiaburuomnmd-tdetebe(re2mmn5nt0unormtoeetie(l(l5(i5$o3553n000E00mmumiirlloillsliil)oioonn)n)) EuUUUroSSSFDDDloFFFaiiitxxxineeegddd C3DD0eeoa-ayllneeerarvRrRedeememabrreannktroktteueeiasrtbea(bbl$(lel$2e35SeS32e0eccmmuuirrliillitliiiieoossnn)) UUUUSSSSDDDD FFFFiiiixxxxeeeedddd CJCJaaaonppnaaavnndbeabortorbibrrorolroewowinwinoingtgnesg((11(1$11.20.6650b2bi.ilmllmliiiioolllnniloJJoanapn)pCaananeenssaeeYdYeeon)D) ol) ~~ CJPAPYUDYSFFFlDloloowFwaiiitxninnegggd.. FFFCllaoonaluatidinnaoggbaroaaeatrterenonoowiottiteeneng(((55$(1161g00000m00i.5lmmlimililloliiinlolo)inno))n Canadian Dollar) CUUUASSSDDDD FFFFllllooooauaaiittiinnnngggg.. TtFOotlteohaalertlrinobbngoogrrrtrraoeotewrwimninnodggtesesb(t$.60 million) Various USD Floating Various LoTLLneoegsstsas::l:tlcceouarnrrgmreed-tnteetrbppmtord(oteeioxbrcntloouftdfiolnoingncgguo-rteerrnremmntddpeoebrbtttion) Long-term debt (excluding current portion) `ShortTermBorrowingsand Current PotionofLong-Term Debt Short-Term Borrowings and Current Portion of Long-Term Debt Effective The Interest we Rate ToT 4.30% aon 4.42% 3 3.24% sm 5.73% Ls 1.18% am 4.67% so 6.01% --%-~% ose 0.50% os 0.76% 180 1.80% oom 0.00% oom 0.00% 00m 0.08% Final any Maturity hae Date od2014 am2013 2002011 aw2037 2042014 am2012 ams2028 m02010 am2032 oot2011 2022012 vt2041 0a2044 20112000 2011-2040 5m20L1e0em $ 1,055 I06)849 3875704767 S335050007 349 2>6-- 211102042162 101 1@0100 6706 s$ m51,13e8678s6 Tam 1,185 $ 4,183 ae 2009 5$ 898 89849 00801 1747 @623 S00500 3%350 3%350 2s225 vi-- =-- 0100 @60 16116 sen $ 5,619 EH522 sm $ 5,097 Tee IEEE, (Millions) Curent pooaf ong erm debt NST ms = Current portion of long-term debt US. dolla commercial per -- -- = U.S. dollar commercial paper Otherborrowings 20m # a1 Other borrowings "Totalshottemborrowingsandcurrentpotion of longfemdebt 5 iw Gd Total short-term borrowings and current portion of long-term debt Pips eihcesodgroTADOIOS0IOOTASA 2060_1Ok Mo ama https:llwww.soe.govlAreh ivoslodgarldata16674010001104659110078451a 11-2060_110k.htm Effective Interest Rate 2.41% $ -- 2.47% $ 2010 1,185 $ 84 1,269 $ 2009 522 91 613 67/114 11775588..00006677 zane 1/13/2018 Migsohcivesadg Gat OTIOOIOSEHIOOTASAI1-2080_1Ok hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm D"eTTchheee mffoobllelloorwwi3inn1gg,w2we0ie1gi0ghht8t2eeddd-a2av0v0ee9rr.aaggee cffctive effective intrest interest aerate table table reflects reflects th combine the combined effects of effects of nestrte interest rate and and cmency swaps currency swaps at. at December 31, 2010 and 2009. `Weighted Average Effective Interest Rate Weighted-Average Effective Interest Rate J At December 31 Shore Short-term Longtem Long-term PoTotal o|s p-s 2010 Ti Tin 2.41% aa 0% 4.22% 2009 4.51% 4.04% Maturofiotnigeersm deb for th fv years subscquetnot Decne 31,2010areas follows (i millions): Maturities of long-term debt for the five years subsequent to December 31,2010 are as follows (in millions): som 2011 $ 1,185 ST om 2012 $ 752 $m 2013 $ 922 5$ mB 2014 1,413 5. = 2015 $ -- 5$ 1% After 2015 1,096 5$ aa Total 5,368 `"TTDheheecCeCommobmpearpn2ayn0'y0'ss0L$$3o355n00gmmtielilirloimonndeoobffDtDepaealayelmerernRRtesemmdaarurkekeeitntaa2bb0lle11SSieecnruciriletiuessSm1m6aa0ttumurierdleliidonnnoDDefeccfeelmmobtbeiernrg22r00a11t00e..nTTohhteses.eeTssheeceufrlciotiaeutsiwnwrgeeairreeotoroiriiggiitnenaalssllrlyey iicssasssusoeiddfiiiennd anDass2cecc0aue1rmmr2eebnentrupo2ord0ri0eti0oto.nnhLoooffn$lg2ao2-nnt6eggmr-imtclerlrdmmoenbddteecpbabatyyaaimsnsetghneetsarrmedessouuuuellnttitnoooff2fp0puC1uto1tnppivrnroeocvrvlituisisdibieoolnne$ss1N6sa0sssmoociiuilalnittddoendpawwoeiyfitmtfhhelont,tahthteseisnseegdddureaeebtbientt2nii0nonsts1ettrs3ru.amTimeehnnnetct.sfl.loAuAa$dtdd7iddneiigttimrooianntlaeallllony,noo,ptpefasayylammraeetnecintlntsasgsddstiuufeeieed nionte2s0,12 real include tohfe p$u2t26prmoviilsliioonnsc.arrying amount of Convertible Notes, and payments due in 2013 include $73 million of floating rate notes, as a result of put provisions. DuSDr1ui8rn8ignmgitlthhleeonfiisbrstatsqqeudaurotnearaoopfrpf2l20it0c11a0eb0,l,ettrhheeexcCChoaonmmgpepaarnniyy eennttaeetrrheeddtiintntioonaa)ffllionocaiotinnnnggecraatttieeonnootwtieetpphaayyhaaebbllpeeuroocffh11a77s..e44obbfiialldllidiooinntJJoaanppaaalnneensseeerYYesennia(nappptphrerooxCxioimmmapatateenllyyy's `$S1u8m8itmoimlloio3nMbLaismeidtoendsappliucablebeaxscdshiasncguiessraetdeidsnNatotyhtat.tiTmhei)sinnoctoeninsedcuticoinnwith the purchase of additional interest in the Company's Sumitomo 3M Limited subsidiary as discussed in Note 6. This note is due in 73 `TabTleoofifCCoolnetesen:ts du{thherreeesMaecqrquucaahll3iin0ns,ts2a0tll1ma1leanlntdmseSofnef5st5..e8s8bmbbiielllrioo3n0JJ,as2pp0aann1ee.ssee1 .YY6eenbn,i,lwwliiitothhn ooJnaeepaiinnnessstteaalllYlmmeeennntit ppoaiuiddisootnnanSSieenppgtoelmnrbtmehbirs3e30o0r,b,2l2i00g1a10t0i,,onaaanntddyttehheaerrreeemnmadiai2nn0ii1nn0gg.iinInssettraalelllmsmteennttss adcuceruMesaorcnh 3he0,n2o0t11baasndedSoenpttehmetbrere3e0,m2o0n1th1T.1o1k.6yobIilnlitonrbJaapnaOnfefseerYeednRaistoeu(tsTtIaBnOdiRn)gpus40basis ois. on this obligation at year-end 2010. Interest accrues on the note based on the three-month Tokyo Interbank Offered Rate (TIBOR) plus 40 basis points. `IAInpnrttihhleef2fo0ou1ur,rttJhhuqqluuayar2rt0tee1rr1oo,ffO22c00t11o00b,,etrthh2ee0C1Co1omampnpadannyuyneenantrteeryree2dd0n1in2tt.o aAat110D00e0.c.55emrminlbilieloiron3nC1,Ca2an0na1ad0d,iatnhDeDololclalaartrillnoogaanin,n,twweiitrthshtffaootuuercoeunqaulhailsisnlsotaaanlwlmalsents|ed3du%ue.neiinn April 2011, July 2011, October 2011 and January 2012. At December 31, 2010, the floating interest rate on this loan was 1.8%. OpOottrhhteeirrobnbooorfrrroothwwiisinndggessbiinnpccrlliuumddaeerddilddyeecbbttohhmeellpddbobyyso33feMMd'isUnSi.ndetoemlrlanaatrtioofnnoatalicncogomrmpteapndireesbaeta.nsd fflolationgauraette oniottnessgin itnhthee UUnniitteeddSSttaattees,,wwitithh tthhee lloonngg--tteerrmm portion of this debt primarily composed of U.S. dollar floating rate debt. "fTThhoeemCCoMomompopadanyny'yhIhnaavsseasatnnoArAsAASe-rcvcrireecde.it raUattniinndg,,wetwihritthhCaoamsstptaaabbnllyee'cosuutt1l.oo5oobkki,,lflrroiomomnSStfitaavnned-dyaaerraddr&&crPPoiootorf'ru'ssialanintddyaaanngArAeaae2mcecrnreetddihittartraawtiiannsg,,wfwieticthhtiavssettaaAbpllreeialouu3t0ll,oaok,, 2cf20r0a0o0lm77c,,uM33lMoaoitd(iesuyrsdr'cseudqIeiunfrivireeneseddtdotoornsmmStaaehtirnvaitigacrinene.ieUittmssnenEdEteBB)rIItTaThsDeDtAAhCetotoormaIIptnnaototneeryfree'sscsttRo$R1na.st5tio-oblsialislsidooofanfttttfhhieeveldeeen-yEndedBaoIorfTfceeDraeaAcdcfhhiotfrffiiasstccchaiaelliltqyfqaouaurargerrtcreeoernmaastenecnnouotttttihelveaesstsqwtutahharsaatnnee3fr3f.se.00ct1tht0ioe1vne.1e.TAThnpihdrsiislei3sids.0,tol i2nci0nta1trle0ceru,sealstavteteeaxdxpipe(beanlsnsesdeesoehfooninrntaeal-dltlefifrnuumntnhddeceeoddadmgdireeetbbetmtfefeoodnrttlt)hihneaeessssoatahfmmeceerrpeapdetieirotrii,oooiddf..coAnAnttDscDoelecilcdeeahmmteuebbdpeerdtrroe3ct31iae1,ld,2Ein20nB01g10IgT0,D, tiA1h.5ibssfiorlraalittiohonwefwaifovaseus-raaycppeopapnrrroscexorciexmudtiaivmteefalcyqt3ui3ea5l5lrtytteyort1so1.t.tAahAletetnDdDesenepccdpeeremdomxbtoiebmrt3eoa31tt1r,ae,ly 2010, available short-term committed lines of credit, including the preceding $1.5 billion five-year credit facility, totaled approximately c1ov.e6n7a4nbtislldioonnowt eoirt lhefpwdahyimwcehntaipopfrdodxiivemiadte,enldys.S255 millionwa uilized in connection with noma business activites. Debt $1.674 billion worldwide, ofwhich approximately $255 million was utilized in connection with normal business activities. Debt covenants do not restrict the payment of dividends. se"cTTuhhreeiltfliooesastiinngg pruatrteeinncoottoeefs9ddupueeeriicnne22n00t04o44fhhpaaavvreevaaanlnuaaecnnanucuahallpDpueutctfefeemaatbtuuerrree,f. rAAcoccmco2or0rdd0iin5ngtghtrotothuhgehttee2rr0mm0s8s,,, bahoel9dr9epsrsercccaaennrnreteqqoufuipriraeer33vMaMlutteoorfreeoppumurrcc2hh0aa0ss9eettthhhereough D2e2s0ec01c1e3u3,mr,aibtaineensddraa2att0ta011p900r00incppedeerrocc2fee0n9nt08t8oopffehpprecaaCerrnovvtmaaollpuufaeepnafrrryoovmmwalsu22e00r11ee44aqcaauhnniddrDeeeevvcfeoeermrryyebpaaeunnrrnnfciirhvvoaeemsrress2aaarr0nyy05itthmhtemherarretoeaeuffrtglierharl2uua0nnm0tlio8lu,ffnianattalo9lf9mappraieutnruccreriitnpyatliionnfoDDpeaecrhceievsmmabblbueoeernrf22.ro00m444.2. 0IIn0n9 through December 2009 and 2008, the Company was required to repurchase an immaterial amount of principal on this bond. "iTTnhhdeeeCtCoeormmmpinpaaantneyyahhmaaosusaant""wwoefelldll--ekkbnnooowrwennqssueeiaatssyoonnseeeddcuiissrssiuuteeirf""eossshhfeeulltffrurereggissiastftrreaastt.iioNonnossstteaattceeummerenent,st,hfeafevfceetcitbivveeenFFeeibbsrsruuuaeadrruyyn11d77,,e2200i00s99,,swwhhehilic.chhTrhreeeggCiisostemtrpesaaransnny inkiinntntdeeoennwtddensrsmst0oeinauasstoeentetahhdmeeipopsrursonoucetcereo"eefddsdshseeflfbrotormoemgriuefsuqtuturuarirtteyisosseneec,cuciruunirrtiiJttiuiieeenssses2sfaoa0llre0efs7uootfutffhrfeethhCsiiasoslsemsshhp.leaNlfnfoyffoosreresgcgeutenrnaeietrbiraelalslichcsoaaohrvrpep5eoo3dbrrbaeaitetleenlpipiouusnrsrpmupoeosdseeeuss.n..dIInefrccteoohnnimnsneescochtitteioloefnn.wTpwirhotietghhrCaaapomrpm.iriopTorahrn"r"ywweeeldlell-bt stkseeneccouurwnriintotiieeseseswahhisaatovvhneebdbceeoieesunsnpuosiesnrus"ueaesdhdtueuonlnfdfdre4eer.grt6itsi5htr%isas.mtmiSeoeedncdi,oiuiunnmmd-J,u-ttineenerrmAm2u0nng0ouo7sttettssh2epp0rrC0oo8gog,rmraa3mpmMa..nFFiyiirsesstst,et,aiibdnnliDDsFhicevecerde-bmyaeeba$re3r,rb822i00l5l00i07o7,n,m33imlMMleidoiiisnus,smuiee-detedadarmfrvivnteeoe-nytyeoaestrapr,,rwo$Sig5t0r0ha00mmm.ciTiollhulliropoenone,n, dfirienxtbeeetdd rate note with a coupon rate of 4.65%. Second, in August 2008, 3M issued a five-year, $850 million, fixed rate note with a coupon rate Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo cana https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 68/114 11775588..00006688 zane Migsohcivesadg OGatTICOIOUSEHIAOIO20T80A_HSOk hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm 4.375%. Thi inOctober2008, he Company sud rey S800million,fixed aeote with coupon te of 4.50%, The of4.375%. Third, in October 2008, the Company issued a three-year $800 million, fixed rate note with a coupon rate of 4.50%. The Companyentered nto a interest ateswap 0convert hisS800 million ote oa flouting ate. Company entered into an interest rate swap to convert this $800 million note to a floating rate. "yTTehhaeerC,CSoo7mm50ppamnaiylanialolyssno,fsiisxsuuededdranntooettensseuunnwddieetrrhaaannceeoauxrplieoern$1a1..b5ibefil5llli.on7n0mm%eeddniiuummN-o-tvteeerrmmmbennorottee20pr0ro6og,gr3raamMm..iIsnnueMMdaarartcchrhe22e000y07e7,a,rtth,hee4CC0oo0mmpmpaiannlyyosi,ssuufiedxdeda r33t00-e- royneeotlat.aert,.Te$Tdhs7hew5e0aCCpomommmialpltpiaouannnr,yyefedienxntietederrNereoaddtveiiennnmtooobateeanrnw2iin0eth0tee9ra.secsItornurtaDpeteoecnssewwrmaaabteppetrotoofc25co0.on074nv0,ve%re3rt.tMtItnhhiiiNssssot0ovu8eeaamdraabt4te0e-rbyb2aea0sas0ree,6dd,Soo36nnM0maifilfslllsooiuaaoettnidinnaglgLtLahIIrBtBeeOOi-RyRrnieaatnignrd,dne$exex4..0,B0Bowotmiththilthlthihoteenhe,ronftotitexeeebaadnanrdsdaeted `roenlateldastwinapg mLIatBuOreRdiinndeNxo.Tvheimsbcear r20i09$.1.5In Dbielcleimonbmeerd2i0u0m4,t3eMmniostseuedprao4g0r-aymewaar,s$r6e0plmaicleli byon flotahting3 rbailtelinonotper,owgirthamtheesarabtleibshaesdedin Juneon a June 2007. floating 2007. LIBOR index. This earlier $1.5 billion medium term note program was replaced by the $3 billion program established in n5In1.lJ0u4yl4y2b20i0l00l7i7,o,n33iMMn UisSss.uuDeadlaalsseesvaeetnyyDveeaearec55e..n0m0%%b3effi1irxx,eed2d0ra1att0ee.EEuUurproeobbraondneddbtffoosra acn aaemmoiuonnJtoulofyfn7725t50007mm,iil3lliiMoonncoEEmuuprrlooesst((ebdbooaokfkivvxaaellduuee0oofNfoaatppipprnrogoxxiiimnmattarteeelslyty te S`$swAw1au.ag0ppu4s40otnb2ia0ll1nni0ooo,tntiitoiohnnneaaUlCl.oaaSmm. mpDoauoonnllytauoortfsfne44ar0mt0t0iD0neammctiileelldmliioob1nn5e0rEE3umu1irrlo,olss2i0oaa1ns0Ea)u.firaUorirpsvvooafanlltuudheeeebhetnedoidstggsieueooanonaflfcaeamppionoourrJtntuiitoloynnoo2fof0tfht0ti7hhs,e3sffwMiixaxepecdd.oiimAnntpseelreretrsettedwrsaatteefiExtEhueuedrr-oiotboboa-onfnnlaoddoalobtiblnailgmiggaoiatuntiintooetnrne..sItInnrate rrAreeeummmgaaauiiisnnntiiin2nnggg01apa0ofrt,ettirfhottenhh.eCeepIopanrmatrariptdiaaaldnl yiteerntrme,mirmniiannitanDotaeniotciensedri2is1b552e050r0m2mm0ilil0iillol,linoo3nnEMuEEururorroesososo.p.feTTtnhhheeeednttheoertemicorinxnasmalitiainomgnnosooefuafnvaatteoponiyorf reitohtaoiionsrns5owo.ff0atp%ih.issAscsswdwaarpatedsdepuiidldEt,notoohtteiibmnmpopaotiacofctnnottarthhaldeeantmteaeordmmuisnsot oonffattlhhee asraemmumoeouaudninntatinoogff2p2p7o75r5rtimmoeinilml.liiIoonannnaEEddudurwiroatoissos(snu(b,bboisonoeoqDkkuveevacnaletluumleeybooefcsrfopna2spr0opo0lr7soi,ixd3mtimMaetdaretweeliolyytpheS$tn33e6h6d88 tammhieigililelinxoiainlsotiiennncgUUu.sr.SSei.v.yeDDnooonylllelJaaararsnra5uasta.t0rDD%yee1cf5cie,xmee2dmb00ebr8ra3e.t3e1r1,E, u2200ro110b0)o)..nTdThhifoissrssaeuncuarrdidtyitiwwoanassal issued at a premium and was subsequently consolidated with the original security on January 15, 2008. 3c3oMVnmvmearasyyiorneddepereeimmce;iitthsso33w00e-v-yyeeeraa,rrzbzoenrdeoh-oclodrueprosonmssaeny-nirocorcnnnovoettreeotss(u(ttpuhhoeen""CnpCoonotvinfeovirectarittnibibollneeoNfNooreteesds"e")m)paatttiaaonnnyyeticimhmeoiifnnthwwehhonololeetoeosrininnoppaa9tr4t6at0ttt2hheesacahccrcareetroteefeddMs c3ccoooMmnmvmmeeprosunnirosscntthoopaccrskkiec((etww;hhehhiioicrcwhhneo33vtMMeesr,awwbtooouaunclldcddrheionntletdeedenrrvdsadlmtooappyaaoynycooNounuotvtveienrtmccubaapsseo)hr.n)2.1nHHoiootnlildftdiehecrraesstyioooefnfattrohhsefe23r30e00d-0-ye5yem,eap2arr0tiz0zoe7enr,rooe2--ac0cco1ohu2up,opo2fon0tnh1ess7ee,nnn2oio0oterr2snn2iaoonttnesosd9a2h.0av42v6e1e0.2tthIhsenhNoaaoprepvtsieooomnffbto3oerMrree2qqu0ui0irre,e 22,506 ofthe 639,000 in cusandingbonds were 3M to purchase their notes at accreted value on November 22,506 of the 639,000 in outstanding bonds were 21 in the years 2005, 2007, 2012, 2017, 2022 and 2027. In November 2005, 74 `TabTleoofifCCoolmnetreenst:s re`redwdeeereemmeededod,c,emrseesudulliteinsngugilininnaagppiaanyyoopuuattyfroruootmmfr33oMMmoof3faMapopppfrroaoxpxipmiromaxtaeilmtya$et$2le2l0y0ymm$i3ill2lii2oonnm..ilIIinnoNNno.ovTveheemmsbbeeeprra22y00o00u77t,,saarnneadaddudcdieitidioonhnaeallC3o36n64v4,e,55r99ti88baoluuettssNttaoantndedinisnggfbabcooenndvdasslue Fawattoemmrraematrtu5uer.driKiettyeyimnttNooeodS$v22r5e5es22mubmmltieiilnlrllgi2oo0innn0,,5aww,hphi3aicycMhhoaucemtqqefuurnaaodttmeeesd3t0Mothaebobtofoeoaorkpmkpsvrvooaalfxluutiemeheaoosftafeelapypepp$crr3uo2orx2xiimmisaimttleloailpoyt$nae$.2y2lT2c26hay6essmmheiailplllaiooyannouoaatttsDoDerfeec2dce.uem4cmb0eb%deerptrh3e3e1r1,Ca,2no20n0n11va00e.r.toiAAbfsslteddhNieisspoccrltlioeonsssc'eeiddfpaiiacnlneaavalue NoaFammvooreomuumnnb8tt-eaaKtrtmmia2nt,aNut2uro0irvi0tteyy5m.ooTbffeththrheee2c0CCa0oso5mhm,p3ptaMaennryeyasm'ssteCCpnoaodnynvemvederetntrhtitiebbsltlweeereNNmoeosttmeoeasf,,dthwweehhsisiececmhhsieeeacqqnuunuriauatatiteeledslyttoooi.np22a.a71yr55ce%%assppheroarantananMnnruauytmmeo2o2of,ff2tt2h.h40ee00nn6%oo,ttpNeses"r' oaaacnccrnrevuetmtee2ddeo2f,vvtaa2hmll0ueue0p6bora,innnMceaipya2rl2, 2NN2000o0o7v7eavmannbeddeNrNm2o22ov1b,ve,e22mme00b0b0er7e5r,r.2t2T2h2h,e,ee22f0cf00ae07sc7hti1tiovnehtheoiornleltddseeetrrerpssatoyorfmftrreeeenccrtooserrvddweoreontrneetdthmhebeaad1c15ek5tthstheocmcahalielaeenonnnrdduiaagarrdildlneyaayyinyrpieareecrlrcdeeedadfir0isnn.ggo5nc0eaaM%cc.hhasysuu2cc2hh, nercstpayment 2006, November interest payment date, Ectve 22, 2006, May date. Effective 22, November 22, 2007, the effective interest rate reverted back to the original yield of 0.50%. n33tWMoorosgriihgniaanlarlollfyye3sssMooldcdo$$6m633m99ommnitilloiocnkli.innTalhaggegggrirreegogaasottpeefrfaonaccceeeaadmmsofourunontmtootffhttehhoeefssfeeer""iCCnoognnvvteoerrtbtieibblsleeeNNdoofttoeerssg""noocnnrNaNloocvvoeermmpboberearrt1155,p,2u2r00p00o22s,e,w sw,hwiecri heaarrSseScSc oc0onmvnievlreh tlrtioibbnllee (si(n$5tt55oe4400sdhmmaiirniellcsliiaooosnnfhn3neuMeptooocnfofcmissossmnuuvaoaennnrccsseitcoocnocokts(.ti)sTn).c.hleIIunndgiaarnoccgccspsooarrprddriaaosnnc]cceeeecadwissthitfhhrsaocaemccocetuohnmuetn)iotnif,ngfegrtsishntteaagnnC, ddotoaamrrbpddesas nuasspypepldrliiccfcooaagrbbplgeeietztnooeecdrcaodlncovioerrpotionbrnlaetdevdebpebutetrepiisnnosssttecrrrsxuu,pmmweetennenstrteess s$thh5saa5ntt0mtmamaayliylylbbioeen qNesoeuqttiutevliesvad"allesiennsntutcaattoosnhctthehueeopnpopoonrNrtctoiioovonnnevomoefbrfseisisrousnua1a5n(,nicnc2ece0plup0rd2rooicntcegeheeopdduassrgthaaialllNllooocccavaastteheemddsbet1eottrlttehh1mee5,esinn2st0)t0r,tt5tmhaetiheCrnsto'smeteuqpquaduinittytmyyercechocoomeomlpgdpoenroninszneeenodnfttatotodvhvdeseirtersiotNhhneeoapltpeieernritihoeodrddefsfhtoroeemmxaptebhhnelesCeyCo1neo0vsnsevperuentrtitiiabtbllhlleeyen Nbsbauocateketstco'oco3i3stMskMs)u.a)a.nlDlDceoeecbabottnteiidNsssstouuovaatennhmcceeebNcceooortst1etss5"w,ewe2qer0ur0ieet2ayamtmohcrrootoruitigzmzheedpdNoooonnvnweasmesertabreneangriogt1tth5t-,mfla2iitn0nee0r5bibaaa(lsst.ihissOeoonfvvireFrsretbaadtratuhhtaerrreehyeeo-y1lyed4eae,arr2rsp0pe0oer3fir,tiohod3edsMbbeeerNggiionmetneisinnghggaiidinntthNhNsesoovevatCebeomimlnbirbtveyeerrter2o2t00p0bd02ul2.te.thNDDeoeembebtst nmiisnasatauurerreeigcgtioyissostttrfsraaa0ttliilooo.nncsasi5ttaeuatdtne0edtmmoae%etnnnhttenflNiieleodsdtlwewisc'toitehnhqvttuehhrieetsySiSeoccenoucpmrurirpteitoimieneisseunaamtnnwddoEfeExrxec0chpnhaeoanrtncgmgeeeanCtCteorovmimaeilrs.msOitsinhsoeiFon$en.6b.T5rT.uh0ha0er(yttseel1rri4mmt,ssa2od0ojf0fut3tshh,tee3eCdMCo)norvcneevogreiitsritntiebbrlpleeerdiNNctoheoteteseosesf Cii3nnoMccnlluvcudedoeremtiambyyloieieneNllddsottttoooecsk c`mooonnanNtNvueoorrvivsteyeimmoobnbfere0rrg.5g110e44%,,s22pa00r0n0i2d2.c.anIIfffocircneseirptrtiteaaacliiinncficoceonodnvnpdederiirstiiiioonondnsssp)fforocearmoecniouvmnmeevtr,eosrhfisi4oo0nnop((eraekrmcltaeatnieiyntncgoorvtfnoevrettshtrhhetelce$looa6scs5iih.nn0ogg0fchc(oosepmmlmim0to--oayndnejausttrsootcecedk1p)p0icr-ilcc<oessosiunoopgfnp33frsMMieceieexooxcrcfene3eoeMddeiisnncggotmtfheome on4s6t0o2ck Sqhcusahoararnertveesesrrsoooifffo3n32MMt0cr1icog0ogwmmeamrmspoor$ninc1s2eso3tfo.co0ckr4ksipipnneearcasninfyhyieaccdraal.pleeennrdidoahardersqcq)uouanaardertitetemriceoctono,msmhmfomoeldnececnoricsninvnmgegrafasyfiltcoeronrnaMMvraeearrmrtcceehhta,3c31h1,a,on22df00t003h33eM..3TTl0hhe-eyetcescaonrnoozveerr1ons0-icotontvultipergiogignengecsereraprnpsiirohircctsenhfeofoo3tiert0sthhiyeneoetfoafoor9uunzr.r4tet6hhr0-2 cfqcooouuruacprpootonenvnresosrefseni2io0oon1r0nrnoowetteaelssswew$i1lil2ll3bbh.0eee4Cccooopnmnevrvpeesarrhtntiaiybbrel'le.esICiifnnotnthhhveeeercaatogginggbdrrlieeetggioNaantoteesteiifnosttrhooacaavoppnppvrrneooerxxvsieiiommrnabattaeeerlleyymm22.te.44t.,mmainIilldtliihoo3nnMcossnhedlaheircetatsisooronnffsoe3t3sMMftorcccsoeoontmtmvleemmroiosnnnicossantososhcck,rk.t.hmTTeehht3ee,0c-co3yonMednamidrtiatziieooyrnnossccfcohharoosocohsos.eentvtooAeprcpsaiacoyyoniirnnredccliaaatsnsehhgdaaletnnoyrddet,o/horewrcCcaooommms0mmpoaionnmnpyssat'stcootcCckkoo;;nnhhvoIoewMrwetCivebsevleirer,tN, ieiofftdtehhcsiiasshroaoicvccnecugurnsres,v,petehhrreebseCCheoaonrmmemp.paeantn.yyIhfhatahssethhceoennidnittetinotnaasnnfddorabcbioillnitvytetroosisosentetalretetihmissetdd,ee3bbMttssemeccauuyrriittyy in cash. Accordingly, there was no impact on 3M's diluted earnings per share. 7s 75 Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ane 69/114 11775588..00006699 zane 1/13/2018 Migsohcivesadg Got OTIOOIOUSEHIAIO2O08T0_AHOSk Hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm `TabTleoofifCCoolennteesnt:s NOTE 11. Pension andPostretrementBenefitPlans NOTE 11. Pension and Postretirement Benefit Plans I33nMVtohhaa,sscco3omMmphapanasyn:yv-sespproon6ns0sooprrleeaddnrreetnti2rre4rmceeonnuttnpptlliaaennsssc.coPovevenersriiinonnggsbusebunsbetfsatinattnsitaiaalsllslyoycaiaalllteUUd..SSw.i. teehmmphpleloosyyeepeelssaaannnsddgmmenaaennryayelemlmyplaproloybyeaeeessseadousotniscdidaeectthhhpeearUUtrinicititeepddanSSta'tatsteess.. cyyIneeeraattorarstioanolf,fps3oseeMsrrtvvithicicaeers,,ecocmovoememnprtep6neh0senaapsltaltaithinocosnnr,i,neaana2n4ndsdcagogefueneaattriireenesst.tiurrPearemnnceseeniotboneonrrbeetfteienrtremsmfiiiftnnsoaartatisisoosunnob..csiIItanntaaeandddtidwaitltiaitlohlynthtotooefpspefrsoprvlUa.inSdo.singegvpempenpeneilnsroaisyldioeloynensbiabreweennhnbeoeafsrfigtees,da, ctothhhneeteCCaroocmhempppnaaantrntyyicappigprreoaovnvwiithd'dsieelsse ecceomemmprptplaaloionnyyypee:oddpsbrbtyoryevtttihihrdeeeCemCdopeomonmptsaphtanetnyaiyl.t.rMhMmocesoanrstett iianhnnetfdeaerlmlntaifahtectiiaooirnnneasalulperleamamnpncslpeolfoboyyeeeneieesstfaieatnsmndadfoetrroernstiuaerbelsesmtsapranlreteiocaycolleovyveeaesrlrleedodnbfobiytytgsmgoUaovt.veSeer.mrinemammlepaenlnntotdyhheieeecaasloltwtmhbhcaioarnrreeeappdcrrhoowiggrtrrehaatmmiUrseSs.m..TTehnhaeemtcoacougosnestttwosohffiinle he tables that oo, company-provided postretirement the tables that follow. health care plans for international employees is not material and is combined with U.S. amounts in "wTThihetehCCoimnosmpuarpnaanync'ye'sscppeeonnssiimoonnfpufsunandrdiminnnaggipinpotolaeliiicnyseidissttooopdrdeoeppvosoiisdittwpwietinthshiiionndebpneeendfdesnttoterrpuulssatepntespsaaamremtoiuocnuintnpsatsntadallallonodwweaahbbillneeebbbyyeltnlwaew.f.TiTrcrouesst.t afuTnhndedsrsaeananrddddenepopoosplisaittnss aawasssisetehsttsstiniaisnniuttrdhhaeeennacnmeoooncuo-nnqmtupsa-alinftqiieeesduapapltrlaeaacnnmduldauulieniet1ttaoofi0anientsisdnnntaueoatltupubdrrreeoen..veFFifdooiertrtppitsaesnyUUsm.iSe.oS.nn.tppbsooeswnsitterttfehiittarisrenetmomienpendlntaethnpheepenaaadtrletthihnctcicpaaamreneittansnedad.ndliffteehieinnisrsuubrreaannneccfeeicbbieaenrnieeesff.itTpplhlaaennrses,,attrhheeeCnCooompmlpapanannyy has set aside amounts at least equal to annual benefit payments with an independent trustee. cIInnnAAeuugtgupusesttns220i00o06n6,,pttlhaeensPPteennss1iio0onn0%PPrrooofttteecchttiiooannArAcectta((PbPiAP)lwwaTasAshsesiiPgg)nnPeeAddainnnttsotlaiaowwniinln etthshe UrU.e.SqS.u.iTTrhheefPPuPPnAdAiiinnngccrreebaaissleeisstytthhaeefgufeundntidnoifgng9at2ag%rgeeitn ff2oo0rr0dd8e,effriinenesecdding. b1e0n0e%fbitype2n0s1i1o.n 3pMla'nssUt.oS.10q0u%alioffiethddeetfairngeetdblieanbeilfiityt.plTahne aPrPeAfturanndseidtioatnhrueleaspprleiqcuaibrleearfaunnsdtiinognlfiaubciliintygtaarbgieltitoyf 9t2%arifnog2r20e0081t,0reaching 100% by 2011.3M's U.S. qualified defmed benefit plans are funded at the applicable transition funding liability target for 2010. DbuDeguirininngitnthhgeeJafinisrustat rqqyu1au,rte2ar0o0ofr8f2,20at00n08de8,a,tltrhhleeowCCcooummrprpeaannntyyemmraaedddeeemmmopodldioiffyiicecaeatsitoainnosdntesomitptssloUUys.eS.e. pspoowtshetrtoeitrvireeetmimreeenbntetbfbeoenrneeeffJiiattsnuplalaarnny..T1Thhe,cch2athnhge0oeaswow1neenrr3eegtofeffefseccttsiivvee rcbceoeocgnnetiiintnvnieuinenugosenJaavttnihhnuegaeserxyxaiicss1ctt,iion2nug0gnp0pts9bo,tseartrneeedttfieraselmlmboeawensntectdupplrllraaeannnsnst.ooreArtsleirlaeecdertettemhhceespenlouotefwywltehetpelsalarmansnes.d.dCeCiumucrrpaerlentonytiteoeeemmnsppwloltohohyeoyeUeer.eesSst.iwrwephhoboosretfroetetriieereeJmaaaefnfnttuetarrrbDDyeene1ecc,fei2emt0sm1b3eblrnt3eh3,1er1,,oi22pe00t1i1oC22n,o, mtwwopiialllny prrreelecmameneeimvaoaesdsuiarrfeeisdadcvatittissnigoUUnsS.S.ar.cecppodllaauunnncsste''bdsaetsnehseeesftiAstasaPn-nbddOassaeccbdccyuupm$mlau1nul4.la8amtAtieeslddlappooroesnsst,turtwelhittiirorcecfhmmtheeewnnamtbsboeepndaneirefftifiicitataltolilyobionlgifagtftoaiitticohonbenyU((aAA.sSPP.sBBptOOov)s)traaaesstoiorlfbfeemMMuieaannrecrt$hbc9s3e317nh1,e,mf22iti00s00l8p8.lo.aTnThl,hoetewhieemirmptCapaocamcnttopoofanfntythhee DeSpDc5lea1ecnemmmmiblobeldeorirnf3i3.c1T1a,,ht2i2eo000nr07se7.nr.TeeThdehusrecuererfedofeortmhreeee,n,ttAthhrPeeeaBdcaOuccccrberuuydeeh$db1ebe4en28ne0mef0fi8iitltlceicoooxsnst,tpwliebahibbilciiylhtitywySr1are5esccpmooarirrddlteeiaaddlonloynnIotntfhhf2ees0be0bat9alb,layantnchaceesesCsesothhvmceaeptltau4anessyoobfmfeMaMinadgraercf$cuh9ht373h1m1e,,ri22lm0l0oi0od08in8,f,lwiowcawaastesirrodetnhduaucntcoeeoddnibsbyy aUU$bS.5s.1So.rmppbooielsslditrorbtenyti.tirrThemehmeCeenorntemtbmpbeeneaaennsfeyuif1ritte0pmlaltaenhnn.r.teTrTehephdeeeurccccheehadnantntggheeeys2aaa0rrr0ee8Aeefesfffxeepccettinisvvsueeeblbebegyagii$nn1non5ifinntmhggilJJDlaaieonnncuu.aearrImynyb121e,0,r202309011,,100th,,3ea0an0nC9ddommlleimipasatitnuttyrhheememaaeamdmneotoufudnunatrtttoho,fefmtrmhemeedodAidiPacifaBlilcOiiannwtfifollsaanttsiriooetnonduitcsed by S168 million. absorbed by the Company by $168 million. to three percent a year. As a result, as of the December 31, 2009 measurement date, the APBO was reduced IntInhtehthCeeoffmoopuurarttnhhyqqwuuaiarlrtteearr nooffi220o011n00,lttlhheeuCrCoeomnmptpaaanndyyfmmuatauddreeefufrurrtsthheesrr ccthhoaanntghgeeesssatoviiisntsgsUUa..ScS.c.oppuonosttbrseefnitreefmese-nbtbabesenndeepffilitatpnpllaaannssn..oAAunsscaerdreesisunull2tt0oo0f8ft.thhTeehsseeesccehhaannggeess,, JctchahhenaaunnCaggoreemyssbpb1oae2cnc0oyo1mmw5ee,ileelfffotffrreeaacclnttlsiivinvteoeibobneeMgagililnnecniuinnrgrgdeJnJaactlninaiuungaadirrbcyyflue1t1ru,a,er2t2e0i0r1er1ee3,ts,irffeeaooenrrsdaaltltolletMMhieeedeidslciaicagvariirbenelgeeesdleiaipggceiclbnoledeurenrnttetrtbsieer.ceneseAsfsuiatnsnd-dbeatsthshleeeidi,rrpM3MleaoedndfiicachanarnereoeDuceenllciicggeeiidmbblblieenerdd2ee03pp01ee,8nn.d2deT0en1hnt0etssseaanndd measuredmte,nttheAPBO increasbedyS69million. January 1, 2015, for all non-Medicare eligible retirees and measurement date, the APBO increased by $69 million. their eligible dependents. As a result, as of the December 31, 2010 InpInetnthsheiesosncepcolonannd,dqqEfueacrutteirv22ea001M10a0r,,ecI3hMM3s'1sB,Br2ar0za1izl0ii,liaapnnarsstuiucbisbpiadinitasrryirreiecceseiivvseeuddbsaaipppdpraroorvvyaalsl fpfreroonmmsitothhneepglgoaovnveenmronmmleoennntetirninaBBcrcarrazuzieillattdoodfifrtreoeenzeaelpfitessnddseeiffiomnneedbdebnbeeefninetesff.iittAs `rsa pensiontphlaenC.oEmfpfeacntiyvereMcoarrcdhed31,$22021mi0l,lpiaornticciuptaanitsmienntthigsaisunbsidtiharsye'scponednsqiounaprlanofno20l1o0n.ger accrue additional pension benefits. As a result, the Company recorded a $22 million curtailment gain in the second quarter of 2010. fDDiuursinLgrtSthh.eiepsseneenccsooignnodnpqqluuaaarnrtsteewrrhoofof2m20e090t,9a, gtthheeeanCCdoommyppaaennyyoafoopffeffreenrrseeiddsoanvsvoeolrlavurintctaearrryyeeqeluairylryermreeetniitrre.rmTeehnnett iiennlcciegenintbtilivveeepapprrrtooigcgirrapaammnt1tso0wccheerorttaaaiicnnceeellpiitggeiidbbllteeheppoaafrrtftiieccriippaaannndttss rproeefteniisrtsetidoUibnb.ySysrJe. Jruepuvneindncees1ai1o,n,n22dp00ol00an9,n,sraredewcdcheeioiitvvomeenddeaatlananegeenesnhrahaonanfdnccygeeeeddapfrpeosenrnosisfroiponetnnbbsseienonbeneeffnsi.eetf.rPviPetiecncnesasilrioceonuqnlbuabeitrenieneomnfesife.itntsstAwspw.epTerrrheoeeexeinenmhlhaiagatninebclcleeey7ddpb0bayry0taipacdadidrpditaiinnncggtispaoawnnnetheasodasddacicdectitseoipopntniaeadldlytthyhaeeearoroofffofeffer raanndd retibyrJaende pension service retired by June 1,2009. Asa result theCompany incurred S21 and one additional year of age for certain benefit 1, 2009. As a result, the Company incurred a $21 milion chargerelated thes special termination benefits. calculations. Approximately 700 participants accepted the offe million charge related to these special termination benefits. r and pDDrurouigrnirngagm2s20,0009w9,h,i33cMhMeSqSuuuimrmietoidmetloig((iJJbaplpeaaennm))peelxxoppyeeerrieieesnnwccheeddaaehlhieiggchtheeerdr1nu0umlmbeabevererotofhfrrCeettoiirmrepemmaeennnyttssttthhaeannrnneoobrrmmyaalSl,e, palatnreggmeelblyyerddu2ie00t0o9.aeaPlrlyay rreetttirremimecenntit hiipnenccJaeeannnpttiaitvvnee ppppeereonnnssgsiirioaoomnnn ppps,lllaaawnnnhhheilcaaehddctrttheehdqeetuaooipprretteidoocneneilioovgfefi.rbreelIcecneeieaivmvcinicpngolgrodcycaaeanseschhsewlHuwuhimmotppheAssleuuScmmCteppd7aa1tyyo5mm,leeeCnanotvtmssepwwtehhnheeseaCnntoeeimxxoiinpttiian--nnggyRttehthtoeeirrlpeealtaimnrnee,,nbwwtyhBhieiScceehhpfatesunm,umbmbseterble2rr0eo0omf9fep.pnPatirasttrictciicicpiocapunapntnsitasenxnxinisittnitnrhsggeeJthshaeiepadn `when the hap sum distbutons ina pension plan elected to receive. In accordance when the lump sum distributions in a with ASC 715, Compensation --Retirement Benefits, settlement accounting is required Ek 76 `TTiabblleeooffCCoomnteensts: Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo na https:llwww.sec.govlArchivesledgarldata16674010001104659110078451a11-2060_110k.htm 70/114 11775588..00007700 nazore 1/13/2018 ipsosocGovAchvsiodpnGa SSTAO00 TOG ODTBASATT 2060110k Mom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm yhyeeeaaCrroaarmreepggarreneaaytteeirrntthhuaarnnetdthhee$s1s7uummmioolflftothhnoeefaannsnneuuataltlseseerervviiccehaaarnngddesii.nntetreesrtcceoossstttss..DDuuee 0totthheelalarrggee nnuummbbeerrooff lmumppssuummppaayymmeennttcelleeccttiioonnss iinn 22000099,, the Company incurred $17 million of settlement charges. l33iMMmiwtwaeadssipiannrfionfremroehdidprduiurmeriirnneegstttdhsh,eefafirirreststqhquusaarrctuerr oobffo22j0f0009e9ctrhtihcamatitntttahhleegigenennevreearalslptpaiarrtgtnnaeaerstrsswiooloffnlWWaGGcTirTvariadldipinnrggoCcCocodmmipnapgansnyyb,,yiitnnhwwhhiSicEchhC33aMMn'd'ssbCbeFenTnefeCifit(t pCplolaamnnmssohhdooilltddy pFlFiulumttnuuitrareeesdsseptTTasrrr.aatTdndiheinnregsgchCCoipouomrmimtnimtasepsrispeisosoitionsn),nt.)ae.rdeAArstsoheceofefsiDDuvbeerjecheecmstcobfeareka3e3cn11rmc,i,2mo20ni0b1tn10ra0,ole,littnohhvfereessWseehtGihogolaTldtrdiioainndnggiasnssrgrewCeppoerrlmeelsspaeesannntcteieyvddailelnepssrsootctthehahaenndrioonenngntesitppbieeyerrscctcheeonenntttSoroEofflC33leMMadn'b'dsfyfCiaiFrirsTgvvCaealnl(uueCeerooaofmlftmtoototaadllity ppptahalraertntrnneaeersrssss,,etaoasnn.lddTuhffouuetfrrttcihhhoeoeeursrrnertreeaeddpveepmemonpiptsntitiweoodinnslsreooncfofetiliimvhmieatirvteeheddasppmtaaaartrktennereenirnaschlhoaiindpptvirieonnrlitseoeerfeefsWstessaGcarrtTeorrraenedsstittnrregiicccCtoteenoddsmpopelpeninaddindanyingtagecndcodofuiorunttrahtneppcrrrioaoelccneetpieeotddiseiiinsntggicsoso.n.no33tfrMMotlhlcceeudurCrbroeymnlptilytaysngbbyeee.lnliieTeervhvaeeelss tthhaatt t`VChaCoelomerm.eppsaaoTnnlhyyuethhiboaaensneoiinfnfissttuuhrrpeaalsnnaeccneeervttehasnattttsittwbbheiellloliinevlovetdessh,i,oabbvenfaesWsgaeGdsmooanTntrewwarhidahailatntagidissCvceocurumsrrpereeanenntftflyleyyckiktnnnocoornewwtshn,ies, iihcsoaaavnppesbpopllleiicdinaacbtaelabeddlfjtfooeumsaataenppdcoitraotolioepnsortosoififtmittoahhniiisdsiopfpofiottotherenemntantCiiraaolklmeddtpeeaccvnrareyleva.aesT.sehinen aasssseett value. The benefit plan trustee holdings of WG Trading Company interests have been adjusted to estimated fair market value. FDFooellcllooewwmiinnbgge3iir1ss aa rreeccoonncciilliiaattiioonn oofftthhee bbeeggiinnnniinngg aannddeennddininggbbaallaanncceess oofftthhee bbeenneeffiitt obbllgiagtaitoionnaannddttheeffiarirvvalaueoloffpplulaann aasssetss aaessoosff December 31: `(MtiClilioohnns)ain bnengefeit abiigation ACcBhqBeauneniengsfeieiftititnioolbbnielsgingaeatftiiitoonnoabatltbigbeaeggtiiinonnnniinngg ooffyyeeaarr ASeSeecrrrqvvsuiiccitseeitcccioooossnstt:ts PFPInaoartrretetiriicecgiispnptaacennoxttscctchooanntntrgriiebbuutttiieoonncssh.anges. PFPAlcaoltanruneaairagmimneanleendx(dmcgmaheianennn)tgtslseosraste changes BAMMeencedetduifiacicratairrapeelaP(PyagmanaertitnntDD)sRlRoesiesimmbbuurrsseemmeenntt BSSeeetatnttnleledefmimoteetpnnhtaetsysr,m, cceuunrrttisaaiilmlmeenntts,, ssppeecciiaall tteerrmmiinnaattiioonn bbeenneeffiittss ChBBaenenangneeedftintootohbpbellliriaggnaattaiisoosnnetaast ennddooffyyeeaarr ACFcahqFaiuanirirgsveviaatillniuuoeeponloasffnplaalasnnseaatssssseettss aatbbeeggiinnnniinnggooffyyeeaarr AAACcotccumqtuaupalialsrnirteeyitotuuncrmosnnotornnipbplultaainnoanassssseetss PaPFCrotaorirmetciiicpgpiapnananeyntxtcccocohonnanttnrrtigribiebbuuuttittoiieononsncsshanges BFBSeeonetrenlefeeiifgmitnetnppetaaxsyyc,mmhecaenunntrgstseairamteencth,anspgeecsial termination FaSiebrbtetnelveenamfelifuetietnssotsaaf,nnpcddluarotntthahseielermrtesntsa,tsnpedcoiafl yteeramrination Funded staas at endofyear Fair value ofplan assets at Funded status at end of year end of year ted ndNate Qualified and Non-qualified Pension Benefits ee United States International ee me we 2010 2009 2010 2009 hwa ed Postretirement Benefits 2010 2009 SUAS 10395 S 468s S 407 S LSS Len 11,391 $ 10,395 $ 4,685 $ 4,037 $ 1,579 $ 1,611 Eo-- 1=5 1054 =9 5=5 2sat 201 183 105 98 ee ow 2s 8 9 638 619 241 235 pi -- ) 4 EY 52 -- -- 4 4 = = 6 os s is -- -- 16 284 -- = [cl 14 ae -- -- (75) 14 w= we ass ms 50 760 822 167 255 ey ey Z = 13 10 .... aw Qn a6) ae) (668) (649) (194) (245) 55 88 59 6 69 125 13 (166) 51 97 52 14 (168) 80 10 (168) 2 a) 3 = Si O) 21 SI Tm an aes 5 im 5 sn $ 12,319 $ 11,391 $ (41) 3 -- 4,912 $ 4,685 $ 1,828 $ -1,579 S 10493 S 9243S $ 10,493 $ 9,243 $ e -- u 1,463 EI290 = - --- -- - 9 (668) 1,148 755 --(649) 37S 32S 3,897 $ 3,022 $ w4 oe 360 ws 266 4 4 4 sos 18 aw en (194) 361 504 4 251 (245) 10S 1,075 om119 @62 59 oy-ae) (166) S$ 99929 129 1m133 252 EE-ae (168) SimsO) TI(@4) Sows 11,575 $ (744) $ ms 10,493 $ (898) $ 4%= 33557 5 Gms 4,355 $ (557) $ mms 3,897 $ (788) $ LB= $n= 1,149 $ ms cw (679) $ 1,075 (504) 7" 77 `Tabile oobffCCoonltnetneetnsts. `(MAtmililoiouonnnst)s recogniazehde Consoldated Balance AmNSShooheuneeenwtttcasaussrroeoefcDftoDeagcnesci.sz.ee33ds11,,in the Consolidated Balance ANAcCoccucnrrr-uruceeeuddnrrbtbeeneinnteeafbfsiistitecctossosstt NoCnucrruenrtrleiatbillitaibeislies Non-current liabilities Qualified and Non-qualified On ens Pension Benefits mn ---- United States International Te he me ae 2010 2009 2010 2009 $Ss ---- s$ ---- s$ ooo O0) a9 6) (714) (30) (868) 7m4 s$ a(7) @) (624) 7W8 s$ @(7) 69)(859) PipersocGouAcHiedpaGaHOOTAOOCO1IOIOS TEASA.2060_S1OK https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm Postrtment Postretirement Benefits wa2010 2009 ---- s$ @(4) @9 (675) ---- (4) GW (500) rome 71/114 11775588..00007711 won s ATOh TES 1/13/2018 https://www.sec.gov/Archives/edgar/data/66740/O00110465911007845/a11-2060_11Ok.htm ergtions Tous ns ems ows ems co Ending balance Amore comsst Amounts recognized in accumulated other proe mespoa comprehensive income as of Dec. 31, Neos ipo an) Ss sas es _s Net transition obligation (asset) No ron som tags Tae ts Tea tem Net actuarial loss (gain) Nr oo we eo Prior service cost (credit) Eras To a se Te Tm Ending balance $ (744) $ (898) $ (557) $ (788) $ -- $ 3,981 33 4,014 $ -- $ 3,975 46 4,021 $ (7) $ 1,670 (144) 1,519 $ (5) $ 1,650 (57) 1,588 $ (679) $ -- 1,063 (341) 722 $ (504) m 1,059 (504) 555 Teton fetes fr tots rt tre efStr The balance of amounts recognized for international plans in accumulated other comprehensive income as of December 31 in the a -- preceding table are presented based on the foreign currency exchange rate on that date. Er -------- The pension accumulated benefit obligation represents the actuarial present value of benefits based on employee service and orefr tgs hot a or sori compensation as of the measurement date and does not include an assumption about future compensation levels. The accumulated ao03 pon pr 1754 hd 1038 hn De 10208 iy Te benefit obligation of the U.S. pension plans was $11.754 billion and $10.769 billion at December 31, 2010 and 2009, respectively. The ico i of 5 Trion ito54 52 ln 517 lo i O00 accumulated benefit obligation of the international pension plans was $4.532 billion and $4.279 billion at December 2010 and 2009, -- respectively. Televi svete sats nes s ofDe The following amounts relate to pension plans with accumulated benefit obligations in excess of plan assets as of December 31: qn(Millions) i Projected benefit obligation roan gu Accumulated benefit obligation ora Fair value of plan assets 5maB"H smBTa vEwCam sm--IOmm 2010 Qualified and Non-qualified Pension Plans United States International 2009 2010 443 $ 454 $ 1,676 $ 441 448 1,563 25 23 1,122 2009 3,322 3,126 2,526 n78 Date Table of Contents Comptpt bere ne pplf e orint 1 or Components ofnet periodic benefit cost and other supplemental information for the years ended December 31 follow: Compt etperf et cstandahs amos reps tr compressive cme Components of net periodic benefit cost and other amounts recognized in other comprehensive income pimp rere Qualified and Non-qualified Pension Benefits Postretirement United States International Benefits (Millions) 2010 2009 2008 2010 2009 2008 2010 2009 2008 [---- Net periodic benefit cost (benefit) eo swmam nss msmm ssss sso Service cost ee Slam tm mtE Rw Interest cost Btnsce ow dw Gm ay op @ de Expected return on plan assets Lohan Amortization of transition a EiT (asset) obligation Amtis Amortization of prior service ccoosstt((bbeneenfeifti)t) fmm egos m5 4 RW QQ Amortization ofnet actuarial (gain) loss Nepstar SSH 5 SI Si ST sh 5 5 Net periodic benefit cost (benefit) A Settlements, curtailments, special pond A termination benefits and other Northenhe Net periodic benefit cost (benefit) after ne craters settlements, curtailments, mmo dois $14 ss Gps wm sw sw ws 0s u special terminationbenefits and other Oe graas nnett Other changes in plan assets and benefit pry obligations recognized in other neemio comprehensive (income) loss Sec ogmor ss --s --s ms @s 0s --s --5 -- Transition (asset) obligation AAmmorotizratiotnoiofftzrtraannassiitttiiooinn((aaossssenett)) Sr EEE E obligation ir co SSE a eam Prior service cost (benefit) 201 $ 183 $ 192 $ 105 $ 98 $ 120 $ 55 $ 51 638 619 597 241 235 252 88 97 (929) (906) (889) (278) (260) (305) (83) (86) 53 100 (104) 1133 1166 1155 "(4) @(4) @(2) 6(94) @ (81) (o97n) 221 99 58 84 42 38 85 66 64 144 $ 11 $ (27)$ 149 $ 114 $ 106 $ 51 $ 47 $ 16 -- 26 7 (22) 25 3 -- -- -- 144 $ 37 $ (20)$ 127 $ 139 $ 109 $ 51 $ 47 $ 16 -- $ -- $ (1) $ -- (1) 9 (91) (2) $ (1) $ (3) (3) 19 (37) -- $ -- $ -- -- -- -- 69 (169) (148) ss TTETS. me https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_11Ok.htm 72/114 sno0r2 1758.0072 sats ipso ovIcHeedonGanBETAOCO IOS OD7BAS 11200110k Hom 1/13A/m2e0r1t8ization ofprior sevice cost @ 0 a 4 4 2 wm https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm mw NeAtm((bboaecernttniuezcafarhiitt))iaoln(ogafipnr)iolrossesrvice cost (13) (16) (15) 4 4 2 94 81 97 27 ss 23 1M 24 2 B 3% ms Net actuarial (gain) Eoorci curency Amortization ofnet loss actuarial (gain) loss 227 585 2,337 104 224 622 89 36 385 =(221) ZZ (99) (58) _w_aw (84) (42) (38) (85) (66) (64) TTo(toiaFtanlolcrrreeoeicmgcoenog)~nciiulzozresreesddnicinnyootthheerrccoommprperehheennssiivvee. Ss -M- sTE4E-0N-sa-m- sG(1s 9) (1901T )s e2W02s (1) 6 s(1) s Tm IT2 Tot(ailncromee)cloossginnneitpzerieoddic benefit: $ (7) $ 470 $2,273 $ (88)$ 99 $ 747 $ 166 $ (119)$ 272 Tocictaoonlssctrtoe((mcbbeeoen)n~eefilfizoitset)s)ad.aninnddanoebtthepererrcciooodmmipcprrebehehenenensfsiiitvvee STs ssa s 39s WE see sas (Ns ow (income) loss $ 137 $ 5o7 $2,253 $ 39 $ 238 $ 856 $ 217 $ (72)$ 288 "Theestimated amortization rom sccumultedother comprehensive income nto etperiodic benef ost n2011 follows: The estimated amortization from accumulated other comprehensive income into net periodic benefit cost in 2011 follows: fAAimm scoaoluuytnetsasreexxppeecctteeddtto be be amortized amortized from from accumulatedothercomprehensive accumulated other comprehensive income income ato into ntnet periodicbenefit periodic benefit cots costs over over nest next fiscal year `MAilltmiioonons))rtiozfatrtarisioionn (se) dogatan Am`AAaAmmmrotoorirrtttziiizzzaaaattttoiiioononnn ooooffpffrptcrirationoarsrcitstsiueeoarvrnviiia(ccaleesc(scoegostas)tnto)(bbblleeoinngseacsfthiito))n "Total amortizationexpectedovrthenext fiscalyear Amortization of net actuarial (gain) loss Total amortization expected over the next fiscal year Quafified and Non-quafified hr Pension Benefits onUnited States International 5 =F $ -- $ (1) 1 3) 11 (13) 34 2 334 112 s ES % $ 345 $ 98 Postrrment Postrefirement Benefits F = $ -- @(72) 103103 5 5 $ 31 79 TTableiooffCCboonntetlennttss OtOhtheerssuupppplleemmenetnatalliinnffoorrmmataitioonn fforrtthheyyeeaarrss eennddeeddDDeecceemmbbeerr3311 ffoolllloowwss:: `WWeeiigghhtteedd--aavveerraaggee assssuummppiitioonnss uusseedd ttoodedteteerrmmiinnee bbeenneeffiitt oobblliiggaattiioonnss T-- EE 1 hQueite-- smtNewo-q-- utmitseenn= eaectws -- we-- mm--Pso-- seies w--e 2010 Quafified and Non-qualified Pension Benefits United States International 2009 2008 2010 2009 2008 2010 Postretirement Benefits 2009 2008 DCDiosismccpooeuunnntsttraatttoeenricincrase Compensation rate increase SZ 5.23% 400% 4.00% ST 5.77% 430% 4.30% GIG 6.14% 430% 4.30% SM 5.04% 3% 3.59% 30% 5.30% 37% 3.72% SS 5.53% 3506 3.50% SOM 5.09% NAN/A SO% 5.62% NAN/A 61% 6.14% NAN/A AiAnssflnnaootttoeenddtaabbwooivlvlee,,cofevfeefcertcttioivvteehrJJaeaenpmuaeeryyr11,,c22p00ee11r00y,n,ettahthree tCChoommrppeamananyiynmmianagddeeinmmfoloaddtiiifofiincciaattiloionbnseptooiassipstseopoossntrrettoitprelimanernptaehrhetemaialclitetphhanpnptllsat.nnAtoollsli,immiiinttt2thh0ee1a0ammtohoueunntt ooff `TiCnhCofeolmramctppfioaaonnrneyyi,taawtnnhnnieloolCuuconnocmcveepeddar ntttohhyaanttthoiirttewwleiopilnllelgrertcrraaehnnnasstsiiptmtieaoirtoneyraleillalarclc; uutehrrrecxenpnrtetoamasnnauddirntffieounutgthuurairenlfrrlteaettticiiroaerrneeesswctfiooolsltthbhieeen fpsslaaaavsvtsiiinoenndgg.ssoaanccctcoooupunlntatbnbenpeenafreitfitictsis.p-bbaanastssce.ddAplllsaaon, announced in 2010 the announced iinn 22000088.. Therefore, the Company no longer has material exposure to health care cost inflation. `WWeeiigghhtteedd--aavveerraaggeeaassssuummppttiioonnss usseedd ttoo ddeetteerrmmiinnee nnett coosstfftoor yyeeaarrss eennddeedd. Te 20dwNeeogeneEPensiw onBeest we 2010 Qualified and Non-qualified Pension Benefits United States International 2009 2008 2010 2009 2008 h mE Powsm ese we 2010 Postretirement Benefits 2009 2008 EDxDipsiscecocouutnndtt rraaettteeumon assets CEoxmppecetnesdtrteotunrrniocnianscsreatsse Compensation rate increase STI 5.77% BS 8.50% 430% 4.30% S66.S114I%%G 48.3500%% 4.30% 66.S00S000%%% 48.3500%% 4.30% S3% 5.30% 6% 6.90% 37% 3.72% SSI 5.53% 6HG% 6.86% 30% 3.50% SIN 5.39% TAM 7.19% 38% 3.82% SE% 5.62% TA0% 7.30% NAN/A 6% 6.14% 720% 7.24% NAN/A 866.600000%%% NA8.60% N/A `"pTTehhneesiCCoonomampnpadannyoydsdetetrteeerirmmrieinmneeesnstthbheeedneidfsisicctoopuulnnattnsraa,ttwehuiucssheddiftoolmmeoaesatsuhureredepapltlaeaunnslleiaadbbfiiloiltiieshse ar3seolofafttthehdeeaDnDenecucaeelmmbmbeeearrs33u11remmmeeenastuaraessmsueumnptdtrdiaeoetnefsfm,ooTrhtetehhdeenUisUSct.oS.u.nt. aaprattetneeestrroireoeffnlleeaecncttsdfttphhtoleehstcceruuyerritrricleerenndtmtorrefaantatet boaaettrnwwtehhfliiitcicphltoathfhanessh,isawgoshschoiqiccuaihaatlteieisddtayllfsifaoaibxtiihelidelti-edsisantccceooomuuuelsldedddebbbefetoeeriffntffhsectectrtrvaievemleelalntyyetsdssteathtntalndetudwaaaolttumttlhhedeaspecunrorddoedmoouffecttnhhtceeaayyssesehrua.fmr.lTpoThwthisoeensCCusf.oofTmmichpipeaeanndntyiysincssoettuitsmniitsttnssg. aarannantdddea5atmo.mo0ro9ue%ufnlntetoctttroosthpseeottsytlltieeeplpidrreooojmjfeeeccanttpeteodbdreftunfuoeutulfirroietobbtefeonnhbeeifegfiiahttps.q.pUurUsaoislpiinrtnygig,tafhttihiexisesfdomm-reietnttschhooomddooeUl.Sl.oodpggelyyba,,tnttishhneesstCoCroufommmDpeepnacatnsenyymtdhbdeaeettrtewe3rro1mm,uii2lnnd0ee1pdd0ro,aaddiwdusihcsciecococuuhanniststhraafatdltoeewcoofsrfas55u.s.2f2ef33io%c%fief0fnoo.tr5rpi4pneeortnifsmsaiiioonnng p`paepnererdcnces5einn.o0ttnaaa9gg%needpfpoopoiroinnpsttotasaentnriddeet00imr..ee55mn33toeonfpftlaaabppneesenrretccfheeiendtnstitaatsoggceeobpueponioantiptnup,t,erorrseepssrppsieaesctcotetiifvvroeeelrflylyi,et,csftfrUrtoo.hmmSe.cttuphhrleraenransatttaesssauotusefseesDddtaeawcseiomocffbhDDeehrece3cee1mam,bs2bse0oer1cri033a,11t,we,2dh20i0b0c0i9hl9.i.iFstFoiaorerdtsethhcceeoreunialntsdteeembroenaftae0tofi.fno5ean4clatolivfealy PhppseinhseiownnsaoncdgpoovsItrcehtvireeimeedngtoprlaGnusaBthSeTAdGisIcOoIuOnIt GraStOesTIaOlsUoTrBeAfSlect111t2h-20e066c00u1_r11re10n0kkt.rhaotmtme at which the associated liabilities could be Tan effectively 73/114 https:llwww.sec.govlArchivesledgarldata16674010001104659110078451a 11775588..00007733 wo Moshesn GnEe TAT ABs H TBS Ti 12080_11 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm sted atthe end fhe yar. econ bes dcpmarket corporate bodsthe Company matches expe ash fows from settled at the end ofthe year. If the country has a deep market in corporate bonds the Company matches the expected cash flows from {he plapornoe f bodt s at generate suTcushilwiapeionn ik cre generated fom avaible bond the plan either to a portfolio ofbonds that generate sufficient cash flow or a notional yield curve generated from available bond Infomation. counties that do ot have deep market in Corpor bonds, goverment bodssecomidered with risk premium to information. In countries that do not have a deep market in corporate bonds, government bonds are considered with a risk premium to spposimat corporate bod yields. approximate corporate bond yields. rFeFootrtthheesUUrS.S.a. qqsuuadallipifrfiiieemddarppieelnnyssiiooonnnbpprllaaonnwss,,,ttpheaeCbCioocmmyprapnaeyny'd'sssasussmtupmytpiatoinondnfffoioxrrettdhh-eeinecxpopemececttneeddierceustumrnnodonnfpoplrlaavnnasraedsstleostsokwwianasgs s8.50m0%%eiinn 22of0011s00c..iPPrroopjjeeoccttreeddto abranuendstdueriidnnnosvveneassraettnmmbseeannssttemcdmapanalrnaliagmogecaeamrmteiilneyontnot.s.nAAbssrsoooaffdDmD,epecucepoebmfmlibc3biel7eyrr%t33org1a1l,d,o2e2nb0d0a11le00q,q,uttihteye CauCnoodmmwpfiiapixnahenyday'-ni'sssnec22xo00pm11e1,1ecetexienxpddpelicecoctentesegddaenolodnnngfgro-trtweeerrammrodfr-ealtoteeuoolodmffnoregeftteus8rmtni0moo%nantUeU6sS..S%o.fpppaarcliantivnvaesatseptsoesrtstfioissl:io q329uT6w%iiahbasnosexpre,cetteudmlnvgesfemetrsaeinofdeepeandmenotfof1r2a0%d2o6n%peircftormcaonmceebesrccahrmeasr,s,wiwtiht npexepcetcetdedoosngfremnrtetofeotfm of based on an asset allocation assumption of 37% global equities, with an expected long-term rate ofreturn of 8.0%; 16% private equities, with an expected long-term rate of return of 12.0%; 26% fixed-income securities, with an expected long-term rate of return of 4.2%; 16% absolute return investments independent of traditional performance benchmarks, with an expected long term return of 6ac0t%i;v1inndve$st4mecnotmmmacniagiesm,enwtihThaensecsxepcioednlnsgeesm rnaaenof e5l0a% oxfpc5t%ed,TrahteeCoofmeparny oenxpaectudlidnabiosvine201r1.eTthero 6.0%; and 5% commodities, with an expected long-term rate ofreturn of5.8%. The Company expects additional positive return from active investment management. These assumptions result in an 8.50% expected rate of return on an annualized a7c1tu5a.l9t5eTohforatvemraognepsluaanlassceutsal120t1u0mwoamsh1e4p4l%an. Isn2t0s09vehre plapnacto1d0andr2e5yofresumasobf c12.46%a4nadnnd actual rate ofreturn on plan assets in 2010 was 14.4%. In 2009 the plan earned a rate ofreturn of 12.6% and in 2b120a010s0i288se,ixenxprep2ere0sir1pie1ecn.niccTevehddee ya oss. loss of 13.6%. The average annual actual return on the plan assets over the past 10 and 25 years has been 6.4% and 11.2%, respectively. Reitngumpoann asstslaoscsautmipotnisosnndorexipnetcctmeadtooagl peosmtiorntaenodfeateir psosesettorne.eben plans rcclaunapeaydplan bass Return on assets assumptions for international pension and other post-retirement benefit plans are calculated on a plan-by-plan basis using plan asset allocations and expected long-term rate of return assumptions. DupDrluinri.nnggD22u00r1i10n0,g,tt2hh0eC9C,oomtmhpepaCannoyymcpcoaonnnityrbibcuuotnteetddrSi$b55u5t66edmm1.2i9illiolnobtofiiteitosnUU.on.SS..taannddU.eiSn.rteaarnntdaiteioornnaasltpeienonsnoiosnnppplaanness apxnrdadSn$6ss622mmxoidilll$lin1oi5n3otnfomtiipts lpoolstorsetnireemrent Cpppolooamssntptrse.aetiDnirryeummrsienpengrntit2npl0clai0apn9na.,sl.thOUOe.fSfCt.thhouem22pi00a00n99dycccooopnnnetttnrrisribbibuuottntieoopdnni,$n$S1,6.62w05h00i9mcmibhliillllliioocnnwwtoaaoistsccoUondnt.Strr.iinbbaeuunottdeneddisrnietnnehrssnhhafiaitrrineeoassnnaoocflifnptghehenessCCitoooynmmpp.plaaannInysy2s'as0n1ccd1oo,m$m1bm3me3oaCnmSsiotloliocomknctto0poetkihxtaespecntsy CConotmripbauntey'saprimnocuipnatl i th eng of ADD lo U.S. qualified pension plan, 0S600milion which is considered a non-cash financing activity. In 2011, the Company expects to contribute an amount in the range of $400 million to $600 million 080 TDiabblleeootfCCoonnteentss U{toSo.ittspUUS.lS,.iaaannnd2n0isn11tdernhratioaneal reetttirrhreeemrammeeonr ntuppnlltaanos,sf..tTThheheesCConormimpppanneyyddiooscecsrneooittohanavaveyecaeoreqnquutiirvredommciionuiilmduvmarppyeensnissgiinooinnficccoaonntntlritybdauetipioennndooibblnilggoiatngitoanetfooiUrroSiint.ss U.S. plans in 2011. Therefore, the amount of the anticipated discretionary contribution could vary pClano' funndmededrseaitsisrteasditnh dostennriastpoer,s. deductof he contribution. Future contributions plans' funded status and the anticipated tax deductibility ofthe contribution. Future contributions wil sldepoen nkdet significantly depending on will also depend on market the U.S. conditions, interest rates and other factors. As noted above efciveJanuary 1, 2010, heCompanymademodifica fs posters heals lan iit he amount of As noted above, effective January 1, 2010, the Company made modifications to its postretirement health plan to limit the amount of nfo til ove to reperc er Ye, he ening fat ilbe pasosn oeplda pric. inflation it will cover to three percent per year; the remaining inflation will be passed on to plan participants. Future Pension nd Potretremcnt Benefit Payments Future Pension and Postretirement Benefit Payments Tefollowing abe provides thecmt pension posttestpayments htepayable from theplans toprices, The following table provides the estimated pension and postretirement benefit payments that are payable from the plans to participants, andlprovides the Medicar subsidy receipts expected tobe recived. and also provides the Medicare subsidy receipts expected to be received. ome CoQmuimteeabeon le lpeurdese ttSaaayrm (Millions) Qualified and Non-qualified Pension Benefits United States International Postretirement Benefits Medicare Subsidy Receipts 2011Benet Payers s os wis ws 5 2011 Benefit Payments 2012 Beef Peymens 716 04 1m 1 2012 Benefit Payments 2013 Becht Pymens 4 au 10 > 2013 Benefit Payments 2014 Beef Pymans 7s 24 13 = 2014 Benefit Payments 2015BechtPymens 6 28 1% = 2015 Benefit Payments Followingfive years 208 178 st = Following five years 697 $ 194 $ 130 $ 13 716 204 133 14 734 214 130 -- 754 224 139 -- 776 238 136 -- 4,208 1,378 751 -- Pian Asset Management Plan Asset Management 300sinvestment sae for fspension sd posteplan is managethefdsonaging-conce basis.Th ray oul of 3M's investment strategy for its pension and postretirement plans is to manage the funds on a going-concern basis. The primary goal of hefunds somet he Obligations as reqred. Thesecondarygol to camhe ight ie frpe oss,wiht oping the funds is to meet the obligations as required. The secondary goal is to earn the highest rate of return possible, without jeopardizing primary gol, and without sbjcing he Company 1 an veamount of contritionrivolt. Fund etssr id 0 help its primary goal, and without subjecting the Company to an undue amount of contribution rate volatility. Fund returns are used to help Foance present id ute blgafto thoecnenst poswisthiin abctlulely determin finding mitsad a dcterrisnetd finance present and future obligations to the extent possible within actuarially determined funding limits and tax-determined asset mit, hs ducithonlvge ofcontains I ustmake The investment stag hs id on distincu ndderivative limits, thus reducing the level of contributions 3M must make. The investment strategy has used long duration cash and derivative thencoda RETO OUGHT. 2680 1K https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 7157588..00007744 ane 74/114 zane Migsohcivesadg OGaTtIOOIOSEHIOOTASAI12080_HOk om 1 /1smi3nat/s2nrt0rau1ugm8meedentnttrssottouo goohffffsmetatnaadppapptrreoosxxfiiommrapattueehblltlyytpiSs5c:O0s/p/wpecwrerwcace.esrnentcet.goofaoftvnth/hdAeermctihanirtvxeeiersem/tesutdmgrraaatsree/duasseteean/n6sii6mt7itiv4iti0ty/y0ot0o0ff1hUU1a0Str.S4.6. 5911007845/a 11-2060_110k.htm pteanbsliiosnheldaabnidlem.onIitodriedoonn, pension liabilities. In addition, rccerregedudilittarriibssakksiiisss. managed through mandates for public securities and maximum issuer limits that are established and monitored on a regular basis. DucDruiorningngt22r000i099b,,t5u$h66et00U00e.mmdSil.illlpioeonnnsiooonf 33fMMlaccnoowmmemmroeosnnossdttoobccekkfowwraaess2cc0oo0nn9ttryriiebbauurtetedentdobtthyheappnrriiinnnccdiiepppaaellnUUdSe.Sn..tqqufauiladiulficfiiieeaddrpypteeronstishiooennplppallna.nn.N. oAArllmllaoolffltythh,ee333MMMdossehhaasrreensset ubciounyvnyeotrosritrbsmsueeetnleltldaamtnnoayntohaofegsfeiUtmso.eSon.wntponefsnststtooihoccenkkafpalsaauanddwinitreehertceedptislinona,vlvndesesbstmtemmafeoyenrnetitnf2fdo0oir0rre9itctsstylppeyeaebnrnusseyiinosondenalbalnynoddarnoththiohneledrdreppp3oeosnsttdreteetontiiktree.fmimdeTuenncthitababregeyngnertefoefigitthatftefuedpnasldams.no..uHHNnooowtwreomvefveatrellhr,y,d,dsu3uhMeaerte0odseoexewxtsoteeunmrlonadtall otbeconsidered obematerial lative 0 the aggregateundpercentages. investment management ofthe funds, the plans may indirectly buy, sell or hold not be considered to be material relative to the aggregate fund percentages. 3M stock. The aggregate amount of the shares would d"TTehshecerdidipisstcciuuosnssssiiooonnfttthhheaatsteffoellvloosww.ssrreeffeerreenncceess thhee fifairvvaallueemmeaesasuurreemmeenntts ooffcceerrtaiinaasssseetss ems in terms ooffleevveells11,, 22aanndd33..SSceeNNoottee 1133 ffoorr descriptions of these levels. 581 `TTiabblleeooffCCooentnensts: US. PensionPlansAssets U.S. Pension Plans Assets aI1nllooorcrdadeteirrontoo.scTahchhieieeivvneevettshhtemiiennnvvteepssotmmleiencnyttaaolbcljotewicstvisveoessmeiinnotthheerUUSn.S..ppaeernnossuiinoodnntlpelaanntas,r,gttehteeiniinrveencsotgmnvietnitcoppnotolshliicctyymtiiannrccmlkluueddteeess antttuaaarrttggieetotnsststrraaattdeeggiilcciaaqsusssietdt.ity of Siasomlolemom.ceeaAiitinncovvcnee.esstTptmmhaeeebnnltitnssrvmmaeansagtyymecsceaanhuuatssvpeeeottlhbhiceeayelanlalloldolcoecawasttsiiioogsnnonmteoode3ataosslplpleeeorccaiwinfffiicocceraadasesrsvoeeiuttnlicdolaantshsseftsootraorssgmtrrelatyoyinnffgrrroeoemrcmmottghhneeigtttiaaeorrtnggseettathnlaaoldtlcmoaacatarlitkiooeonnt,,wflppuoofcctotenurnttathitiieaaollnolyypsfpfaooonrrdtluloinolnlinigtgqyuppfieeodrrriiittooyaddcosstifoocffal rvtoiavemnergere.-.s.AanTncddhceuuepnnatddlaeleborrl-ecwwaerteaiiingogghnhtetis.s.heTTavhvhieeeepbpwoeosrerdttnfrloedilgeiousiwlgwianlrilelyldbnntyooorrtmahmleaalonlllwyyambfboeeerdrrdeeebbivaadillcaaaitnniacocreenyddowfrwfhothemhenenltotphnhlgea-qqntesuur.aamrrtietaerr--gennedtdsaasassnsedetttaoalllaloollccoaawttiioofnondrdetevhvieaiatotepesspofrrrootummnisatyccccfeeopprtataabbcllteeical ranges. The allocation is reviewed regularly by the named fiduciary of the plans. "TThheeffiairrvvaalluueessofotf thhee sasestetss hheelldd bbyytthhee UU..SS.. ppeennssiioonn pplanlsbbyyaaassssneettcclslaassss aarreeaass ffoolllloowwss:: Fcve a-- (Millions) Aquisene Asset Class Ma Fair Value At Dec. 31, 2010 prieEpGess Level 1 Fair Value Measurements Using Inputs Considered as Level 2 Level 3 EqNUUuSoi.tS.nie.-sUeeqSiu.titeieeqssuities s $ am 11,22042s$ 11u,129m40 s$ --s5 s$ =k7l NiEEnAAodnFFe-xEEUf.iiSunnn.dddeeesxxquffiuotnineddsss `12o,625w84t44 1,244 =---- Eo6-8dn4- =-- `ToLILunloodnneEggxq/ussfihhutooinertdtsseeqquuiittyy --4929539i -- =-- -- 253 E= l -- 0a4969 FTFiioxxUtaeeSldd.EIignqncuocooivtmmieeeem.smentsecurities sams s ss ms - $ 3,882 $ 2,434 $ 942 $ 506 PNNUroeo.Snfn.-e-UUgrSoe.S.vd.earggnnoomdvvceeeorrnnnntmmvseeeencnrtuttrssieteiccesusearcirtuiesrses $ 1,035 $ 562 $ 473 2%2 =2 m8 == 289 -- 289 UNPUSor..eSnf.-ecUcroroSemr.dpporacrnaoadrtepcboboaronnanvdtdessrbtoibnldessecurities 112,000248582 11=266088 28osm748 = CNAAosolsssnlet-ttUbeba.aaScci.kkzceeoeddrdspmseoeocrcurarutgiretiatibigeeosesndbslgations 20a11l566 m=--=-- 120316516 -= Collateralized mortgage obligations Privat placements Private placements ODtehreivrative instruments Derivative instruments 31 29279 93(55) -- --=@(2) 31 135135 3(53) "1==44 TTPoroiOtlvaatlFhtFieeixrxEeqedudIiItnnyccoommee sm 34 $ 2,904 $ 7 $m $m -- 34 748 $ 2,012 $ 144 PriBBDvuiuaystyoteoruEeutsstqssueidtydebt s$ 7o613 s$ =-in- $ =---- n$ o361n%3 GMDGerirrsootmwwraettnshhsieeendqqeuudiiettybyt 376 2923 "-4 -- =---- 376 %919 SeRMRceeeoalznlzdeeasasntiratntyeee 111965539s -- =---- -- =---- 111965539s OVtOSehnetthceuoerrrnedacryapil 165 5&67 -- =---- -- ==-- 165 5&867 TATboosVtaoaellPnuPrttruieirvveaaRtecetaEupEqriqutnaiultityy Tam583 $ 2,079 $ 3g -4 $ El-- -- -- $ 583 2,O75 Absolute Return Pigs eihcesodgroTADOIOBSOIOOTASA-2060_1Ok https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ron 75/114 7157588..00007755 zane Migsohcivesadg Ga OTIOOIOUSEHIAIO2O08T0_AHOSk hom 1/13/2018 https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm Hedgefundsadhedgefund offs sams RSE 5 Hedge funds and hedge fund of funds Bank oan funds Sot rr -- sot Bank loan funds Toa AbsolteReturn F-- = -- I} Total Absolute Return Commies 5 Ely = 58s ih Commodities CashandCashEquivalents 5 zy Ei 3 = Cash and Cash Equivalents To Sm sa ssn 5m Total $ 1,201 $ 564 $ 1,765 $ $ 449 $ $ 644 $ $ 11,723 $ -- $ --- $ -- $ 35 $ 3,221 $ 1,142 $ -- 1,142 $ 338 $ 609 $ 5,043 $ 59 564 623 111 -3,459 FOatOietrhreviratitleeummossfttpoolrraeenccooannsccisileleesttooffiairrvvaalluuee ooffppllaannsasssseettss~~ -- $ i(114188)) Fair value of plan assets $ 11,575 82 `TabTleoofifCCoolennteesnt:s Ae (Millions) EAEqsqusUueiStittiC.ieeleassqssuies NANUoo.VSnn.-E-UUeqS.iSu.ni.tdieeeeqqsuufiitutiineedsss TOouEOtlAtehFEerqEruiitnideesx funds FFTiioxxUtaeeSldd.EIIgnqncuocoivotmiemeeemsmentsecurities PNNUroeo.Sfnne.--rUUgrSo.eS.vd.egargonnovmdveceerornnnntvmmeserenetcntiutbsrsliteecicseeuascruirtriiestsies UNPUorS.eSn.f.-ecUcroroSerr.dpprcoaoarnartdtpeocbrbooaonntnvdedesbsrtoibnldessecurities ACNAsolosslsntet-tUbebra.aSacc.ikkczeeoeddrdspmseoeocrcurarutgiretiatibigeeosesndbslgations PDPCreirorivvlialavtatateetrippavllleaiazccieeendmsmtemernnuottmrssetgnatgse obligations Derivative instruments PTTroOoiuOttavlhtlaheFFteirirxExqeeuddiIItnynccoommee PriDBBviuuasytytoeroueEutsstqssueidtydt GMDGreirsoortwwmretntshhisenecdqeiudtietyybt `RMRSeeeecalzolzneeadssnatiatrnteyee OVtOSehnetthceuoerrrnedacryapil ATTboosVtloaellPnuPrttiruevirvaeRattceeaEapEqiruqtaiultityy AHbeBHsdaoenldgukgeteelfoRfuaunenntddufssrunnaadnnsddbhoeddggee ufunnddooffffiumnddss CTToomoBtaalmnAAkibbslesooolaslnuuttfeeuRnRdeetstuurrnn CTCCaoaosusmhhlamannodddCiCtaieassshhEqEuqiuviavlaelennttss Total Oteritemstoreconciletofirvalu of pan assets Other items to reconcile to fair value of plan assets Face Fair Value At Dee. 31, ME 2009 prea ep-- Gess Level 1 Fair Value Measurements Using Inputs Considered as Level 2 Level 3 sass aes 6s 3 1,215 $ 1,206 $ 6 $ 3 2s he = = 1,128 1,128 -- -- (3) 2 = 633 -- 633 -- 7 . = i 7 6 -- 1 --i -- 3 3 $ 2,983 $ 2,340 $ 639 $ 4 s =mos os ms - $ 891 $ 610 $ 281 $ -- 165 = 165 = 165 -- 165 -- 2 2 9 s 29 20 9 -- 122 7 109 16 1,222 147 1,059 16 ns -- 1s e 175 -- 175 -- 2 = 2 = 20 -- 20 -- Ed 56 56 -- 56 -- 25 = 1 253 -- 120 133 0 6 2) = (50) 6 (56) -- nl36 TR vl 36 -- 7 Sim iss $ 2,797 $ 783 $ 1,829 $ 185 s ws $ 569 $ 3359 232 2102 13134 17147 13137 su517 si 3 $ 1,997 $ --s -- $ =-32 =-- -- =-F]4 =-% 3 36 $ --s 560 -- $ = 3% ----= 10 -- 13 -= 197 -13 -= su -= Te -- $ 569 359 -102 134 147 133 517 1,961 s nas -- sums 10 $ 1,141 $ os = = os 625 -- -- 5m 75 $ 1,766 $ 5 El =n iH $ = $ 396 $ 5 9 5 ws 6s = $ 696 $ Sees sami sm smn $ 10,635 $ -- $ --- $ -- $ 552 $ 3,711 $ 1,038 $ -- 1,038 $ 159 $ 144 $ 3,809 $ 103 625 728 237 -3,115 $ i) $ (142) Fair valofuplaen ass Fair value of plan assets s_ loas $ 10,493 PfuPubunlbdilsciacllyyettvrraaadldueededdqeqauutiihtieessesatreeavsvsaaeltuvdeadlutaet (tehNeAccVlloo)ssaiinnggdppertriieccrermeriepnpoerodtrbteeyddthiinnettchuhestasocdvtiiveaenmomafratkrhkeeeft uiinnndww.hhTiicchhhetthNheAViininddsiivvbiiaddsuuaealdlssoeencrtuihrietifseisaaervealttruaredaeodfd.t. hIInenddeexx. funds are valued at the net asset value (NAV) as determined by the custodian of the fund. The NAV is based on the fair value of the Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ron 76/114 11775588..00007766 zane Migs heedGat OTIOOIOUSEHIAIO2O08T0_AHOSk hom 1/1uVu3na/2ndl0ei1rdd8lyeuinsigrnaaglsstsheycetsmiooowwsntnnergeeddcbbenyyttthgheeeneffuhratantdlpd,s,p:/mm/uwisinwntuwuess.rsiiestcsst.aglatioaevibm/Aeillnricttihoseivsfetftshh/ieeednnvgdadailriv/vudieiadd,teaeud/d6pb6bdy7ya4tth0eh/ed0e0onr0ur1u1mba0bne4ye6rsr5ou9ofb1fws1ue0inq0ti7uts8es4noo5tuu/attpss1rtt1aat-nn2ndd0ei6innn0ghg_,i.11PpPr0rikiiv.vnhatattemteereppslltaa'ccceeammseehnntlt ffouunnwddosssaaere evxapleucetdeudscihnagntgheesmionfsutirevceanltegeneral partner statement of fair value, updated for any subsequent partnership interests' cash flows or expected changes in fair value. hFFeiilxxpeemddaiinnncacogomemreeiiisnnkccsll.uudUdeeSss.ddgeeorrivivveaarttniivvmeeeniintnsasttnrurdmagmeoennvttserssumuccehhntaasacgcrreeedndicittyddbfeoifnaldutsltassnwwadapposs,t,eintarerreetsvtaralatuteeedssawwaapphsseaacnnlddosfuiunrtgueprressiccceoornnetrrpaacrctstsdtthaanttthaareeeauucssteeiddvetfoo `mhmoenaalcrprokkmmeeptaaiinnnraawwgbhehliireccisshhektctsuhh.reUiitin.niSded.isivgvoioiddfvuuesaarsllnumsseerecesnuwtrciiattuynhdiirsssgtriioraavltdedaereyndc.m. eCCeonotrtrpparoogarretaanittnecgyaasobndrdovnotadthlsheuearernbdbdouonnnnodddtsseesrannaddrcesnnvcoaoteluuosneatadrereedatvtvactalhaleuesuehecdfdlaolatsotiwntesgiatehppeprrirrctoeehaeryceiyhpteioelarldtdetssdmccuaiunrxreirthenmnetitlzalyycetsaaivvveaaiillaabblee osoobunbscsceheorravvmnaacpbbralloeredaiiibntnlppeauuntstsdes,,clussiruqciucthiihedsiaatssoyccfiuuissrrssrteu,nnetrtSsyywwieeahiltdphsoasoinfmfdssdiiilemmaririillcvaararretdiiinivntsetrsranurtmtiunregmunsetesonn,rbbstvuus,attluaiinreneccdllvuuuddnaeedsselraabdduajjyuduessitstthdmcmeoeeuncnnuttsstsetfcfdooodceriaactsnehuristfailnionnwgrrsiiCssakokpssipttnrhhoaaamttmcamharaytkhyneanototmstwabbaxeepimoorbbiszsveeerrssvvaabballneed marke such as market derived np. credit and liqui derived inputs. d it y risks. Swaps and derivative instruments are valued by the custodian using closing market swap curves and "rTTehhaeel pe prriivvaattaeet needqqvuueiitnt tyytupprooerrtfctoafpliilotaiils ianddviievvesertsrmsieiffniieted.dmPmiaixtxeoorffspphaarirtptnnetererssrhheiippstiinnattererereevsstatsliiinndcclluuusddiiinnnggtbbhuuyyomououtstss.,, ddiissttrreesssseedd ddeebbt,, ggrroowwtthheeqquuiittyy,, mmeezzzzaanniinnee,, real estate and venture capital investments. Partnership interests are valued using the most 83 `TabTleoofifCCoolnetesen:ts revrceacelenent.tggeennerearallppsatrtenerr statement of statement of ifair alu, value, updatedforanysubsequent partnership updated for any subsequent partnership interests" interests' cash cash floroexpwectsed flows or expected chang changes in in fir fair value. inAAtbebsrsoeolsluutttseearreeevttuaurlnmcuocenodsniusssisittnssgpprtrihimmeaarNirAillyVyaoosffpdpreriitvveaartteemippnaaerrdttnnbeeyrrstshhhiieppaiidnnmttieenrrieessstttssraiitnhoehredodgrgeceufsfuutnondddsis,a,hnheeoddfggtheeeuffunudno.offfHfueudndndgdsseafanundbndbaparankrktloeoarannsiffupunnddtsse..rPPeaasrrttnt,ewnrhseihrcipsh have redemption ight andaepas nylock-uprdemptionperio, areclassified evel 2 interests are valued using the NAV as determined by the administrator or custodian of the fund. have a redemption right and are past any lock-up redemption period, are classified as level 2. Hedge fund partnership interests, which CsCioommmimlmaanotidiittieheses GccooonlnssdiismstatonofSfacccoommhmsmoCdooidmtimtyyo-dlniintkkieeeddsnnoIotnteedssexaann(ddGcScoComImm)amonroddtDyiot-ywl-liiJnnokkneeedds ddUeeBrriiSvvaaCttiiovvmeemccooondntirtrtaacycttsisndddeesxiegrenteudsrtntsoo.diedCleoilmigvvmeeorridnniinvtveieeseststmmadreennttvrraeetltuuurnmeassdt closingpicsdeterminedby calculation agfeor onusttandisng transactions similar to the Goldman Sachs Commodities Index (GSCI) or Dow Jones UBS closing prices determined by calculation agents for outstanding transactions. Commodity index returns. Commodities are valued at fOOotrtheseerrciuirtteiemtinsetstooprureercccoohnnaccsiielldeeatnofdfianrirevvasalltuuepooafypfaplbllaaenn.saesstests iistthhenntetooffitnetreeresstt ereicveiavabbele,, aammoouunnttss dduueefor scifisd, for securities sold, aammoouunnttssppaayyaabbllee for securities purchased and interest payable. "TDTheheecffoeollmlloobwweiinnrga3t1a,bb20le1e0:sseettss ffoorrtthh assumumamryoofmfcchhaaannggeerssiinnythhee fifairvvaalluessoofftthhee UU..SS.. ppeennssiioonn ppllaannss' lleevveell 33aassesettssffoor tthhee yyeeaarr eennddeedd. December 31, 2010: S ns mI (Millions) NNPBeueertgtctithrnraaansnniesnssffg,eerbrssaanllianeontsocse/uoa(aoutnuJttacnooe.ffs)1lal,een2vvd0eel1l033 PReuassrlcetihtetzalmeesdemesnge,tansnstais,l(,elnsno,eesttiss)suances and UnURrene0araeliilaznilesizdzteergdudamggieanani/it(nnlsos/s/sl(islo)olsseshsee)sl)drraeetllaahttieinngg EnrdetripoeonpirongtrsbittinrnuggmaddeeantltteesstsiDtiellsnh.e3l1dc,a2t0eth0e0 Ending balance at Dec. 31,2010 FvFyMemig ofnCrb lpsnee y Equities TO Tg em Ty $ 4 an n 0) [) 49 Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Fixed Private Absolute Comm- Income Equity Return odities $ 185 $ 1,961 $ 728 $ 237 (37) 27 (49) (140) an [2 ao - 412 (34) (55) (201) -- -- ' 3 4 a -- 1 133 4 -- naTotal aso) 3,115 (150) 113228 138 S306a41 314229 $20599 __@11s411 5m1144 3__3a223w34 $ 506 $ 144 $ 2,075 $ 623 $ 111 $ 3,459 "DTTehheceeffmoolbllleoorwwii3nn1,gg 2taa0bb0ll9ee:seettssffoorrtth aassuummmmaarryyooffcchhaannggeessiinn thheeffiarirvvaalluueessoofftthheeUUS.S..ppeennssiioonnppllaannss'lleevveell 33aasssseettssffoorrtthheyyeeaarreennddeedd. December 31, 2009: Ome bee ecm fm em dia ma (Millions) Begianncetnain 1n20g09 TS mS 2m ms = um Beginning balance at Jan. 1, 2009 Nettransier no out of level 3 108) - wom) -- aus Net transfers into / (out of) level 3 Purchases, le, issuances and Purchases, sales, issuances and stiements, net. 1 uw an a6) 2 as settlements, net Realized gani(loss) -- 1 @ -- 2 Realized gain/(loss) Unrealizedgain loses) relating 108 st 157 389 = 05 Unrealized gains/(losses) relating Equities Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Fixed Private Absolute Comm- Income Equity, Return odities 1 $ 122 $ 2,054 $ 1,548 $ -- $ (106) -- (1,043) -- 1 11 (241) (162) 237 -- 1 (9) (4) -- 108 51 157 389 -- Pips eihcesodgroTADOIOSHIOOTASA-2060_1Ok Mo ma https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm Total 3,725 (1,149) (154) (12) 705 77/114 7157588..00007777 wan ese GT. 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm ane to instruments still held at the pairs reporting date fff fs Ending balance at Dec. 31,2009 $ 4 $ 185 $ 1,961 $ 728 $ 237 "84 efr l $ 3,115 T Taba leoofbfCCool nntteee nnttss nat ios International Pension Plans Assets us 33pss ily egy dein Sie ciesTe ds ot Outside the U.S., pension plan assets are typically managed by decentralized fiduciary committees. The disclosure below of asset oe tg categories is presented in aggregate for the 55 plans in 23 countries, however there is significant variation in policy asset allocation tai oe ea opt from country to country. Local regulations, local funding rules, and local fmancial and tax considerations are part of the funding and a cs ee ns srt rest 1 investment allocation process in each country. 3M's Treasury group provides standard funding and investment guidance to all a international plans with more focused guidance to the larger plans. cies cigs cin The con vty sd en Each plan has its own strategic asset allocation. The asset allocations are reviewed periodically and rebalanced when necessary. hie b ty briond iy The fair values of the assets held by the international pension plans by asset class are as follows: ites (Mi~ons) mEmE BA F EER Asset Class Equities ce sms mas oma Growth equities jen BoB : 2 Value equities he wa " Core equities nada he is Total Equities rms Fixed Income eset sows ows ms Domestic government debt fr aery fo neon : Foreign government debt Sr Boa B i Corporate debt securities Rt = 2 5 Mortgage backed debt `OOtthheerrddeebbtobolbiliggaattiioonnss. foririets ww rm Total Fixed Income mn Private Equity tat + mss ws ow Private equity funds re 3 3 : i Real estate Ty Era Total Private Equity nl Absolute Return Hr sw os ms Hedge funds feeee i5 =5 2* n"il Insurance Fair Value At Dec. 31, 2010 Level 1 Fair Value Measurements Using Inputs Con~dered as Level 2 Level 3 $ 371 396 1,007 $ 1,774 300 $ 70 $ 1 369 27 -- 549 361 97 1,218 $ 458 $ 98 $ 656 398 707 14 J144 1,789 194 $ 455 $ 7 51 345 2 139 555 13 -- 14 -- = 22 122 384 $ 1,371 $ 34 29 $ -- $ 15 $ 14 59 3 56 88 $ 18 $ 7O 130 $ -- $ 130 344 344 ote Derivatives Other kik Total Absolute Return fri=tes Cash and Cash Equivalents 50 -- 50 LLL3 LLL-- LL3 Fm = wn 527 $ -- $ 183 $ 344 pE e R Rr m= 242 $ 233 $ 9 Total ctsrete 3 Other items to reconcile to fair value ofplan assets iret PR " Fair value ofplan assets 4,420 $ 1,835 $ 2,039 $ 546 (65) 4,355 85 Ietcaen Table of Contents (Millions) = Asset Class Fair Value At Dec. 31, 2009 tee TA https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm sso 1758.0078 RE= Level 1 Fair Value Measurements Using Inputs Considered as Level 2 Level 3 78/114 zane 1E/q1EFu3iq/i2xut0eii1dtei8eIssncome. Fi`xFDDeooodrmmeeIinsegctsnotiimccfifefxiiexxdeeddiniincnoccomomemee TTPorouiFtvaloalFrtFeieiixgxEeqnedudfiiIItxnyneccdoomimneecome PPrriRPiveraviatvaleatetEeesqceutiqietutyiytyfufunnddss ATTobotsRtaoalellPauPrltrieeivvsataRatteteeteEuEqrquniutityy Absolute Return OItnshuerrance Insurance C`TaTosoOtahltlahAAnebrbsdsoColaltusetheERRqeuetituuvrarnlnents Toul Cash and Cash Total Equivalents Migsohcivesadg Got OTIOOIOUSEHIAIO2O08T0_AHOSk hom https://www.sec.gov/Archives/edgar/data/66740/O00110465911007845/a11-2060_11Ok.htm snes 10s uss " $ 1,619 $ 1,330 $ 275 $ 14 s os 2s @ 2 $ 928 $ 283 $ 623 $ 22 2 m a0 -- 622 222 400 -- 55 $m z $ 1,550 $ 505 $ 1,023 $ 22 s $ si88 5$ a54 62 ------ s$ =3 u st58 =f ER w51 59 s $ a317054ss$ =m - s$ 1-- m 01 a37es5o 55$ 104 E8 l5 479 $ E=-- S|$ T10o4 $ 5 m375 S $ ew208 $son208 $ $ m-- a-n- $ 3,918 $ 2,043 $ 1,405 470 OtOethreirtiteemmssttoorreeccoonncciillee tooffiarirvvaalluueooffpplaannasssieetss $ a(21) Farvalue ofplanassets. Fair value of plan assets sae $ 3,897 PuEEbqqluuiiitctiileeysstccoronansdsieisdstteppqruiirmtiaiersimlayroaeovffamrmlauainnedddlaaatttyeesthiiennpcpuluboblsliiinccgepeqrquuiitictyyresspeocurutrreidtieesimmtaahnnaaatggieevddetomothatrhkeeMMtoorirnggawannicSShstaltnehleyyiCCnadapipivititadalulaAAlllsl CCoeouuncnttrryyuaWrWerooarreldddeIIsnn.ddeexx.. `aPDDnouodmbmpeliasecstslstiyiicctvaraeanndmddeafdnfooderraqeeuitiggietnni.egDgsoeovravrieeevrravnmtameilnvuetene,dti,cnacsototrtrrhppueoomrercantltoteessdidnecegobbn,pts,mirmisrctteoorgfrteagpgatogeerertbeebasdactckirnkeaedttdh,,estowahtcahetpeirvsrdtedhbemabt,ata,rkhheeeetddsiggneeefwdfuuhn1nidcdhshseatlahnpnmeddapipnrnrdiaiivvvgaaietdteuciaeqslqukusi.eittcGyyucorcovionteisnerissnsismtatserseonotftfrbsab,dochetodhra.apccottriiavvteee cbbaunrooednnndptdsalasyansniadvvennaoomittleeabssnldaaeanntoddensmm.cooDormrtetpggraiaavrggaaeetbbivbaleaceckiksneeseddtrcussuemcereuencritotsuifecrssoanairerseeitvsrvtaiaollweufueiesnddtieatrteiesttittrehaertchrethrshweesiaccpllroosaissttiiihnnnagggltsppaorrrrieiacvcueraserleerpudpoeortdotrtehedddelepfirfrmtaraaadddneieasdgdceooounrninasatknnesad.caccGtatiiosvvvheeefrmmlnoamwraeksanerpttospo,rrakcoaotatrecpyyihoieerthlladdtaesst mabmcxusaeirxrrmeivminatziblzyeleseasosvobuasbcileshaerabrvslveaacbborllneeedciiionntmppauunpttas,,rslasibcuqlucehihdsiaaetscycuciruuirtekirene.sntHtoyyoifiedieslglsdduesseofroufsnfwdssismimtaihrillsaeivrmaiinlinlsusatterrrducumrmaeetednnithttsesr,,NabbtuiAunttgViisnnsoccllruduvddeaeetlssueareamdddijuunnesjtddmbeuryenatsthdsefitfisoocnromdscueeenrpertteteaanndiidnncetiarnisstsshaksdsfmlttoihhwnaitstsmmtarapaapyytnroonrtaooctrbhbeethat custodian ofthe observable such custodian of the fund.as credit fund. and liquidity risks. Hedge funds are valued at the NAV as determined by the independent administrator or pRRaeeraatllneterssttahetiep ccstoanotseinsmtesnsotofiffpprfsrooippterertrsatyybfefuu,nnddusspdaaanntddeRdREfEIoIrTTSaSn(y(RResesuablsEEcsqttuaeetnetIInanrvveiesnstetmmresenhntitpTTrirunusfstetsrse))s..tsPP'rroocppaeesrrhttyyloffwuusnn.ddssRraEreeIvTvlSaulauereedduvuassliiunnegdttahhteetmmhoeoscstltorrseeiccneegnnpttrice: reportedintheactivemarket in which its raded. partnership statement of fair value, updated for any reported in the active market in which it is traded. subsequent partnership interests' cash flows. REITS are valued at the closing price IhInnessuucrroaannntccreeacccotonwsnaisssicsttasssoofhfeiidnnssouuurrtaannccyeeceocaonrnteatrncadtc.sts,, whicharevalued which are valued using using cash cash surnder surrender values values which which is is the the amountthe amount the planwouldrecive plan would receive if if the contract was cashed out at year end. foOOtrthhseeerrcuitrteiemtnisest0oprureercccoohnnaccsiielldeentoofdfianrirevvasalltuuepooafypfaplbllaaenn. aasssestseiissttthhsee netoofftienrteersesttereeceivvaabbllee,, aammoouunnttss dduueefoforrsseeccuurriteiessssoodld,, aammoouunnstsppaayyaabbllee for securities purchased and interest payable. 586 `TabTleoofbfCCoolmneteesnt:s "eTTnhhdeeeffdoollDlleoocwweiinmngbetaarbbl3lee1,se2et0ts1s0ff:oorrtthh aassuummmaryomoffccahhaannrggeessyiinn tthhee ffaiirrvvaalluueessoofftthhee nineterrntaotinoanallppeennssiioonnppllaannss vellevel 33 aasssseetss ffoorr tthee yyeeaarr ended December 31, 2010: FeoesMesUs sSicea esblepesa(Lelv) Qb(MeHge lilonnis)ngbanaTenary 1 2070 Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Fixed Private Absolute b5 eseBtEeRmSekBSeesms mm a Equities Income Equit7 Return Total NeNFBtoeetrgteritianrgannnnsinsctfgurerrbsseanlniancontyocee/ x(a(ocotuhuJtatanonofguf)ealrleeyvve1el,l323010 $ 14 $ 22 $ 59 $ 375 $ 470 92 [=i a4 aoen I14) 97 17 -- -- 114 PuRFPreuocarrlcehihiagzasensdeecssgu,sarsraiaelnlnee(cs,oy, siiess)xssucuhaannacnceegsseaannddsseettltleemmenetnst,s, et. net aa(159)2 ) -- _=-- 4 7 (18) =1010 (12) e2y2 UnURr"eneiaranellsiaztilerizduzemedgednatgiansa/iis(ntlsoisl/sl(lsl)oeesskse)as)trrteehlleaattriiennpggorttotoingdst: (18) -- 1s (3) -- (21) 3 2 o Endingblance at December 31, 2010 instruments still held at the reporting date Ending balance at December 31,2010 Tw18 $ 98 sm sms (5) 3 $ 34 $ 70 $ 3m(23) 344 3k(7) S 546 Pips eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_11Ok.htm rn 79/114 7157588..00007799 --ha eloving le ts i te y fp es 0h tpt 15 r3d a 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm The following table sets forth a summary of changes in the fair values of the international pension plans level 3 assets for the year ended December 31, 2009: gm(Millions) er Beginning balance at January 1, 2009 moka Net transfers into / (out of) level 3 pe Foreign currency exchange RE Tn enn RePRauelraiclhzizeaesddegsga,iasniandl(/e(lsloo,ssisss))suances and settlements, net Sometime iro Unrealized gains/(losses) relating to en instruments still held at the reporting date ingame bene Ending balance at December 31, 2009 Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Cee EE hm A Equities Fixed Income Private Equity Absolute Return Total TE Tw ey ren $ 23 $ 21 $ 53 $ 337 $ 434 EE -- -- -- 11 11 2 : ooh 2 4 3 7 16 bos we (7) (2) -- (10) (19) Ri... an . = . = 0 . sw ow (4) (1) 3 30 28 TH 8 Ts Te $ 14 $ 22 $ 59 $ 375 $ 470 v87 tm Table of Contents Psst Postrefirement Benefit Plans Assets SS ---- In order to achieve the investment objectives in the U.S. postretirement plan, the investment policy includes a target strategic asset i: ersSA pi a Sd esi allocation. The investment policy allows some tolerance around the target in recognition that market fluctuations and illiquidity of Et some investments may cause the allocation to a specific asset class to stray from the target allocation, potentially for long periods of eee oe So bo so sr ears Br time. Acceptable ranges have been designed to allow for deviation from long-term targets and to allow for the opportunity for tactical itn ho to dn Fo over- and under-weights. The portfolio will normally be rebalanced when the quarter-end asset allocation deviates from acceptable Tey a oy ranges. The allocation is reviewed regularly by the named fiduciary of the plan. TheBirt seis ee eo psy The fair values of the assets held by the postretirement benefits plans by asset class are as follows: q=e aREE ee (Millions) Asset Class Equities Hr ms ms 5 U.S. equities etre % t 3 = Non-U.S. equities er : " a = EAFE index funds ar i = i 2 Index funds frei fe - = u Long/short equity niin ew ee ek Total Equities Fs Fixed Income TS ta somes ms ows - U.S. government securities Ae th * = Non-U.S. government securities Sion ; : > = Preferred securities UR opens " : FH = U.S. corporate bonds NT ee i Es " = Non-U.S. corporate bonds presets ) = 3 = Asset backed securities rCaeeny sins 3} =e 3i &: Collateralized mortgage obligations Fair Value At Dee. 31, 2010 392 48 21 45 16 $ 522 $ 210 10 1 54 11 3 7 Level 1 Fair Value Measurements Using Inputs Considered as Level 2 392 $ 48 ---- 440 $ -- $ -21 45 -66 $ Level 3 ----16 16 50 $ 160 $ -- -- 10 -- 5 49 -- -- 3 -- -- 7 -- DePDrreiirvviavatatetiipvvleeaicinensmstmremunmtaseennttss on H Other tne mr Total Fixed Income Foray Private Equity nr ome Buyouts fee 3 Distressed debt ar : Growth equity oa? : Mezzanine bred 3 Real estate Sean ; Secondary = a Other Voron u Venture capital 12 @(2) 2 $ 308 $ $ 57 $ 18 1 3 5 5 43 94 Noaemem------ https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 17580080 1758.0080 -- = =i===o--ss rw=-=-s-=-9 omx4ui3::H 56 $ 8 @ 248 $ -- $ 4 -- 4 57 18 1 3 5 5 43 94 80/114 maa ptsou BETABODt OSHSa 20801 1/13/2018 https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm olPriva Baty s ws = Eny-- Total Private Equity AoRel Absolute Return edgefunds and edgefindoffunds s ws = 6s 2 Bankloa funds Hedge funds and hedge fund offimds Bank loan funds To Absolat Return T % Say ER n Total Absolute Return Commodiies s us = 5 Ts 3 Commodities Cohan Cah Evans s 5 Ts Ww i Cash and Cash Equivalents al Sues ws ws Ww Total $ 226 $ -- $ -- $ 138 18 $ -I-S $ 36 $ 56 $ -- $ 36 $ 14 $ -- $ 11 $ 43 $ 1 $ 42 $ 1,169 $ 497 $ 403 226 CRY128 20 3 -- 269 Orit fo reconeto irva of ans an Other items to reconcile to fair value ofplan assets $ (20) Firvalu of pnses Fair value ofplan assets sue $ 1,149 "88 DhleofContes Table of Contents Son(Millions) Asset Class Eas Equities 0Scies s ms ms -- 5 ey U.S. equities Non cies 4 = = Non-U.S. equities EATEindexins is oo w re EAFE index funds Indexfunds EY C al & Index funds Toul quits --i -- % 5 = Total Equities Fadi Fixed Income U.S. ovementscries s ws ws ws - U.S. government securities Non.govermentseries 5 ES s = Non-U.S. government securities refrdseats i | o = Preferred securities US corporatebonds a 4 = U.S. corporate bonds No.3 copsbods 10 = 0 Ee Non-U.S. corporate bonds Astbckaderties 2 = 2 E Asset backed securities Colltcrledmorgageoigaions 7 7 Collateralized mortgage obligations Priv cements n = 7 4 Private placements Dervatn unens @ = o _ Derivative instruments ote IE Other Tol Fed income Tm % sw 3 Total Fixed Income Five city Private equity Buyous s 2s --s = 2 Buyouts Disvesed bt i = = n Distressed debt Growincaiy 1 \ = Z Growth equity Nerang 3 = = 3 Mezzanine Resse i = = i Real estate Secondary 5 = = 5 Secondary Or 7s = 7s Other Venue pial I} = = 5 Venture capital To Priva Eauity Tm i = Fm Total Private Equity AboleRem Absolute Return dsfads and edgefondoud s us --s ns 3 Hedge funds and hedge fund offunds Bink oun finde is = = n Bank loan funds "To Abo Ream 5 5 3 5 5 = Total Absolute Return Commodi s ns Sa} i 7 Commodities Cushand CahEilers s ws 5 Ss -- Cash and Cash Equivalents Tol Se sw sm sm Total Mi Fair Value At Dee. 31, 2009 peepee Level 1 Fair Value Measurements Using Inputs Considered as Level 2 Level 3 377 377 $ -- $ -- 39 19 31 $ 466 $ 416 $ 50 $ -- $ 167 $ 45 $ 122 $ -- 5 1 63 4 59 -- 10 2 7 7 11 -- (2) -- 7 4 (2) -- 2 266 $ 50 $ 210 $ 6 52 $ -- 17 -- 1 1 3 -- 4 -- 5 -- 75 -- 89 -- 246 $ 1 -- $ 52 -- 17 -- 3 -- 4 -- 5 -- 75 -- 89 -- $ 245 34 $ -- 19 -- 53 $ -- 12 $ -- 48 $ 43 1,091 $ 510 31 $ 3 -- 19 31 $ 22 5 $ 7 5 $ -- 301 $ 280 Othersto reconefievali of pan sts $. 19 Other items to reconcile to fair value ofplan assets (16) Firvalueofplana sus Fair value ofplan assets $ 1,075 oto: NCS HATADODDIECAST200TH se https:llwww.sae.govlAreh iva~ladgarldata16674010001104659110078451a 11-2060_110k.htm 81/114 7157588..00008811 zane 1/13/2018 Migsohcivesadg Gat OTIOOIOUSEHIAIO2O08T0_AHOSk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm PfuPubunlbdilsciclalyryttvrraaaddleueddeedqeuqaiuttiithieeesNs aaArrVee avvasaludleedtuaratmtettihhdneeoccdllbooyssiintnghgppciruisccteorrdeeippaoonrrtoteefdd hiinenftthuhenadacc.ttTiivvheeemmaNraAkrVkeettfsiibnnawwsehhdiciohncttthhheheeiifnndidiirvvividdauulaaullessoefcetuhreictuinedsueaarrrlereyttirrenaagddesesdde..tIInnsddeexx. omfowuownnsndteesdrdeabcbryeeyntvtthhageleeunffeeuudrnnadadl,t, tmmhpeiainntNuosAssVtitssstaalasiatbdebiemitleleinteritmessointtfhehfedeninbddyviiavvtlhiiudedeee,cdduubbspytydoatdtthhieeaednufnooummfbtnbheeeyrrfosoufunfbdui.cntiTqstsheeoonuuNtstAstptaVaanrndtdiisninenbrggas..sheiPPdprriiivovnaanttteteerheppeslltafsaac"cieercmmaveseanhnluttfeffluuoonnwfddstshsoeraareueexvnpvadeaelclruulteyeediddngucishainansngsggeetttshsheein mfiorstvraelceent general partner statement of fair value, updated for any subsequent partnership interests' cash flows or expected changes in fair value. hFFeiilxxpeemddaiinnncacogomemeeiiisnnscc.lluudUd.eeSss.ddegeroirvivveaatrtinivvmeeeniintnvaveenssdttmmgeeonntvtsesrssmuucechhntaaascgrcereedndicittydbdeoeffnaaudulslttassnwwdaapnpsos,t, einsatrerereessvttarrlaauteesdsawwaapphsesaacnnldodsufiuntgupsrreisccceoonrtnertpraoacrctttssetdthhanatttahaeereuaucssteeiddvfetoo omhmneaalcrprokkmmeeptaaiinnrnaawwgbeihlicrecishhskettschhu. erUiiti.nSinded.siigvvooiidfdvuueiaarsllnusmseeercecsunurtwriiiatttynyhdsisgitrorlaavdedaerendc.m.reCCedonoirtrtppaoorgarretaanittecngya4sobndrodvnaoadttlsheuearernbdbdouonnnnodddtsseesrannaddrcesnvcotaoteleuussneatadroreedavtvactalhaluesuehecdldlooaaswtincesgiatthppreprirrtctoeheaercyeiyhpteioelarldtdetssdmccaiunuxrirtrhemnelitzalyycetsaaivvveaaiillaabblee ouoobnbcsshceeorrsvvmsaacpbbralleeredaiiibntnlpepauunsttdes,,clussqruuiicctdihheisaatssyoccfruuiirssrrksrseeu,nnetrtSsyywieeilwtdshsonsoifadmfssdiiilemmarpiriillvcaaarrressidiinvintsetrsranurtsmiuntegmrnsmetseon,rnbbstvuu,sattluriineneccdvlluuauddnleedussedraabddajjyudussitsttmcemoeeuncnnuttsstsetfcfdooodceriaactsnehriutfsalniionnwgrrsmisiaaksrpstkptherhaotatatmscmwhaaaythpynacnotuotmrtvabbexeesiamoonbbdiszseeemrrsavvarabbklleeet derived such as derived inputs. credit and inputs. liquidity risks. Swaps and derivative instruments are valued by the custodian using market swap curves and market 589 `TabTleoofifCCoolnetesen.ts "rTThheeepaprriilvvaaetteeasneedqqtvuueiaitntyyttupproeorerttffcooalliipootiis iavddeiisvveiermrsseiinffiisee.dd Pmmaiixxtoeofrfpspaairrtptnneterresshhriieppsinneaterrreesvstatsluiinendcclluuusddiiinnnggg btbhuueyymooouutstss,,rddeiicssetvnreetsssgseeenddeddraeelbbt,p, ggrrrootwwtethhrcesqiutaiytey,,mmmoeeefzzznziaatneniinnee,, Vreaalle,esutaptdeaatneddfvoerntaunryescuabpsietqaul einnvtepsatmrtennetrss.hPipairtnneersrhtip'icnatesrhefsltsowasreorvaelxupeedcutseidncghtahnegemsoisnt fir value. recent general partner statement of fair value, updated for any subsequent partnership interests' cash flows or expected changes in fair value. InAAtbebsrsoeolsluutttseearrreeevttuaurnmlpiprrdiimmuasaririnilglyytcchoeonNsniAstVssoaoifsfpdpsreriittvveaarstteemippnaaerrdttnnbeeyrrssthhhiippiinnndeteesrpetesntssdeiinhntehaedddgmgieenfifusuntndrdasst,,ohhreeoddrggceestffuondudioaofnfnffouufndntddhssefaaunnnddbdba.annkk looaann ffuunnddss.. Parnes Partnership interests are valued using the NAV as determined by the independent administrator or custodian of the fund. CsCoiommmmlmaanotid0iittieheses GccoSonnCssIiisstotroofDfccooowmmmJmoodnoeidstityyU-lBliiSnnkkCeeoddmnnmoototeedssiatannyddcicnoodmemmxmardtoutdeyints-y.-llniCnkkeoeddmddmeerrioivvaadttiiivvreeetccovoinantlrteruaacesctdtssatddeclsoiegsinnegdsptrtooidicedelesiligvvdeeertrineninrvmveieesnstetmmdbdeenynttcrraeeltctuuurlnmasstion agents for oustandingtransactions. similar to the GSCI or Dow Jones UBS agents for outstanding transactions. Commodity index returns. Commodities are valued at closing prices determined by calculation OtPOuhtcheteurraitittieoemnnss,ttomororcueocnnotcnsiclipleeaytaofbfliaerirvfvoaralsluueecouofifpiplelasannpsuarsscscehtassiiestdthhaenndntentoeoffritnsetrepreaesystatberleieceviavabbele,,aammoouunnttssdduueeffoorrsseccuriitiesssooldd,ffoorreeiiggnnccuurrreennccyy fluctuations, amounts payable for securities purchased and interest payable. De"TTchheeefmfoobllelloorwwi3inn1g,a2ta0bb1ll0ee:sseettss ffoorrtthh assummaaryoom ffcchhaanm nggeessiiy nntthhee fifairvvaalluessoofftthhee ppoossttreeitirreemmeenntt ppllaannss' lvelevel 33 aasssseetssffoorrtthheeyyeeaarr eennddeedd December 31, 2010: Sns m (Millions) NNPBeueertgtctithrnraaansnniesnssffg,eerbrssaanllianeontsocse/uoa(aoutnuJttacnooef.fs)1lal,eenv2ved0el1l303 PReuassrlcetihtetzalmeesdemesnge,tanssntasi,l,(ensnl,eeottiss)suances and UnURrene0araeliilaznilesizdzteergdudamggienaan/iit(nnlsossl/s(oisl)oslseshsee)sl)drraeetllaahttieinngg EnrdetripoeonpirgontrsittinlrnugagmndcdeeeanttteeastsDtielcl .he3l1d,a2t0th1e0 Ending balance at Dec. 31, 2010 Fv Memig onCb lps ey Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Fixed Private Absolute Comm- a fr ne Equities Income Equity Return odities TI pi ia, olen, oe, $ -- $ 6 $ 245 $ 22 $ 7 2 @ r= @ 2 (2) -- (1) (4) -n13 pa(1) a(1116) =[(63) -=a- -- -- 16 -- -- naTotal iy $ 280 (5) 1(56) 16 11 3 $ 16 $ L ey 5 = a 1 iy ms ms Ef -- 4 $ (24) 226 $ 5 20 $ -- (17) 3 $ 269 De"TTchheeefmfoobllelloorww3ii1nn,g2ta0ab0bl9lee:sseettss ffoorrtthh a ssumumarmyooffmcchhaaannggeesrsiinntythheeffaiirvvalauesloofftsthhee ppoosstrreeitirreemmeenntt ppllaannss'' lvelevel 33 ses assetsffoorrtthheeyyeeaarr eennddeedd December 31, 2009: mow ee ae VilebMesmsennsge Spicen s UnhE rbee aps(vm d) a (Millions) Begining balancea January1, 3009 5 AT my ms =F om Beginning balance at January 1, 2009 Nettransier no out of level 3 an - on Net transfers into / (out of) level 3 Purchases, sales suances an stlements,nt = [ 7 Go Purchases, sales, issuances and settlements, net Realized gani(loss) -- a0 = - a9 Realized gain/(loss) Unrealizedgais/(loses) relating to Unrealized gains/(losses) relating to Instruments till bidat the reportingdete 2 2 u = 1 instruments still held at the reporting date Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Fixed Private Absolute Commo- Income Equity, Return dities Total 4 $ 265 $ 47 $ -- $ 316 (31) -- (31) -- (38) (5) 7 (36) -- (14) -- -- (14) 32 11 45 Pigs eihcesodgroTADOIOBS0IOOTASA. 2060_10k ho ne https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 82/114 11775588..00008822 zane Migsohcivesadg OGotTIOOIOSEHIAOIO20T80A_HSOk hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm Endingbalan aDecember 31,2009 s 6s uss ms 1s om Ending balance at December 31, 2009 $ 6 $ 245 $ 22 $ 7 $ 280 090 TTableiooffCClooennteesnt:s NOTE 12. Derivatives NOTE 12. Derivatives "gTTehhneeeCrCoalomlmpy spaaonncyyiuuassteessdiiwnnitteterrheessfttrrrateteeisswweaxappcshs,,acncuguerrrrenanctceyy, siswwnaaeppsrs,t, cctoommemsmondodidtcityoypmprmrioiccdeesistwwyaapppr,si,caaenndcdftfoorirwwoaarnrdd.aanndTdohpoetpiitinoofnnocrocmnoatntrtiraoacncttshsftaoommlaaonnawaggseererixisspkklssains hatgheerenvaveacrarcarioliloouyuunsaststetsyydoppfceoeirssa,otoefadfnddwederirhitivhovaawfttoiisvrvueeeicssghnnaindendxstcffiirhnnuaaamnnnegccnieitaasrllaiiitnemns,pstairrncuuttmmeerMeenn'stttsssrasutseeneaddannbcbidyyalcM3oMpm,o,smihhotooidwwointynaanpdndrdiwwcpehehyryflfu33ocMrMtmuuaausntescieosesn.sss.uuTcchhheiinnissntifrrouurmmmeenantttisso,,nhhtoohwwat ssfuuoccllhhowsintssrteruxumpmelaenintntsss are accounted for, and how such instruments impact 3M's financial position and performance. Additional information with respecf the impactsanatercomprehensive inocfonodermvateiv heging and derivative iAiRnnedssftdtreiurtrimuoemenennanctltsetinosiissfoininnrcmfcuolaurdtdmiooaetdndiwioinnnirtNNhooogrtteresdp66.ie.ncAAgtddtddodeiirtttihiovoenanatiamillvpieinasnfcafotonsrrdmmooanatrtiiohootenhnwdewgiritictnohhgrmreeipssnrppseeethccretutnmtosoeitnvtthehseeiansficasoriormcvvieaaaltlouuefeedwnoooifdfnteddhreeihrrviievvaCaatttioiivvvmeeepiihnneassdtntrgruyisumnmgeleonnanttngss-dtiisedsreiimnrniccdvllaeuutdbdiveetdedriienn NNssoootte 1133.. made in Not References to made in Note 10,information 10. regarding derivatives and/or hedging instruments associated with the Company's long-term debt are also TpypeessooffDDeerriivvaattiivveess/HIeleddggiinngg IInsntrusmetntrsaaunnddmIinneccliunssiitoonnisinn IInnccoommee/OOtthheerr CCoommpprerehheennssiivvee Income Income CCashFaFlloowwsHHeedhsge:s: iFsFoorrredpdeoerrriitvveaadtt1iivve.eiinncssottmrrpuuommneeennntttss tothhfaatttaahrresrddecesosimiggpnnraestheednasainnvddqequiaunlaciloiffmyyseasasnccdaassehhcfflalosowiwfhiheeedddggeenst,,otcthhaeeneieffnsfgeccttiiivveetpohorsritaoionmneoopfeftrthhieeogdgaaidiunnrionrglwloohsssisoconhnttthheeddheeerridivvgaaettdiivvee tftirsraoarnnemsspaatocchrttetiieooadnnsaasfasefffseaescccmttoessnmcetaapomrofninienengfngstse..ocGGftaoaivtinnhessenrauecnnaosddrmselloopsrsrsseeeehssecnoosnoivttgheheeniinddncieecorruzimvvraraeeettiandivntvedcrrraeeemppcrirleneasgssesesn.nitftiiinengdgeietnithtoheererahrenedidngggees ininneeftfhefeecctstiaivmveeennepesessroihooredhddeudgrgeiengccoowmmhppioconhneetnhntetssheeexxdccgllueudddeedd from the assessment of effectiveness are recognized in current earnings. CoCpatasishhoFnFlclooonwwtHrHeadcetgdsigtninghge--dFFgooerraeegiiagginnnCsCutrutrrhreeenenfccfyyeFFcotororwfwaeaxrrcddhaaannddgOeOrpapittoioenfnuCCcouoannttrriaaoccnts:s:ToTnhheceaCCsohommfplpaoanwnsyyedeennnetoemrrisninantoteofdoforiereifigognrneeeixxgcnchhcaaunnrgegenefcfoiorcrswwaaanrrdddcanenrddtain ndoineptrtteriirovccanootmimcvpoepnasatnnrwayyiclftflisinntsaaounnlhcctieinndngggertrreaaacgnnlasssaicnscofstitcnotasnht.sei.oeTTnfhhfseee(cssFteerootrfrmaenaxasccahccnuatminousgnlesaartaarertedeecdodfetleisuhsiceigtgrouncnaaoatntimteopddnrssae5sohneccnaacssashisfvhflleofolwwoihwnhecsedodgmdgeeee)sns.ot.moTTcihhnaeamtssieentdtgtllisenmmnefotenrnhteteoigoprnreerecxxiutotreerdnnesdnsuiicrooiinnenosgofawfnhhthdeiesccseehertahien thhdheeeeddriggfvoeearddteivctrraeaassnntswseaadiccltltirirooaennnssssuaclaattffiiffoneencc.rtteTcechaalaemrsnipsnionigrfgtsicis.a.otnGGioeoennnfseer(grafarlailoynlms,l33oyaMrMc,cauddsmeecddueselssaioitgengndptaaothtetehstdetherhreeicsvsoeaemtciapavsresehhhinefflsnlotoswriwvhuhmeeeedindngtgceeoprrmreeelevla)iatottiiuooosnnelssayhhrisnippcisnseguiisnmnuiaanldatvthadeendpcieevonroofiobftdaethhrdeeounccoroiccnmcugpcurrrwereehhneneicccneehsioothvffee intihnntecchooefmomvreeeacffaoosrrteddodeefdddteeerarssniiigvsgnaaaactittieeivoddenhih.enedTsdgthgereeusspmroererentmtmiosaanaiinfonsefriignndaesaidnccesccusuomgmrnuultollaiststoeeenddsootaornhtheterhrrececcodoomemrprdripeverdaehitheinvenencssaiiinmvvsieetnriiugnnmsccuoeonmnmdteepauwrrennvittiinlocttuhhlseeulydffoeoarrdceeciccunaatmsshtteueeddDlaetttrreraidanvnaissnatacciottvtiiehoosennNrooocccotccumDurersps.sr.eiCChghehnanaansntiggeveedess oaiannss ctHHhaeeesddhvggafiilnlnuoggewIIhonnefssdtdtrreguruemimvseeawnnteittvsrseeseencinctostiittoormunnamtbbeeelrlnooitwaws.l.affHHoteoerdd2dgg0eee1d0ine,nsee2iTfg0fen0ecac9tttaiiovvnneednn2aetr0ses0sr8ane.ncdTdorhttdhheeeeadmamiamnoxoeuiuanmrntnutiemenxxlgcecslnluagudntdheedddoaffrferrooiimmnmceeeloufvfdfeeecdrtfiiwvnheeintchcehesstDt3teeeiMsrstithvivineanggtdeigvrreeeenccssooeNgignsnosicitzzxDseepddeosiiisnngrniienantctceooodmmee httoheneevcvmaaasrrhiiaafablboijllwiotyyfhoiietnndfhgrfueuetCtsuuoirwrmeeceptcraaeasnsnhhyyof'ftllmooowwapstseefnfrooiafrrol aarfemomirgoa2nj0orx1rci0tthy, oa2on0ffg0tth9ehfeeaofnfroodrwreae2ccr0aa0dss8att.eneddTdthtroreapantnmsisaoaacnxctticiimooonnnusrsmaiicslt1e1sn22gmhtmaohdnoomtnafhtthtsuismraiaedtniod,e,vsaeacrcoccfwoornhrddiiecinnyhggel3layyM,r, aaohtteDDdeegecsecesemmTibthsbeeeerrx3dp3o11ol,,sau22r0r0e110t0o,, eteDhqqeeuuimcivvaeaaljlmeoennrbtitte3ygr1rroo,ofs2sst0hn1neoo0tCwtiiooaonnmsaalplaaaapnmpmyroo'ousuxnonitmptaeootnffettflhhoyeereSCCi3goo4nmmpebpaxiancnlyhyoa''ns.sgffeoorrfeoeiirggwnnaeerdxxccahhnaadnnggoeeptffioornowcaorrndtawraandcdatsooprhptatiiddoonnmccaootunntrtirrtaaicectstssoddfeeosnisgeniyaegteandrsaoasrstclceaeassssdhh. Tfllhooewwdhhoeleldadgrgeseaast December 31, 2010 was approximately $3.4 billion. `cCCoaanssthhaFcFltlsoo,wwpHrHeidecdgpgirionntggec--tCiCooonmmmamoongdlirtyyePPrreiiccaeemnMMdaenfaonanrgawtegamersmednetnh:ty:sTTihcheaeClCocoomnmptrpaaacntnsyy.mmaTnahanegageCessccooommmmmaoisdetistypycpoprmriimaccoerdriiisnstkkysstptryhhirrocoeuuggshhwnanepeggsootrtieislaaitteciddvsesuutppppnllayytural aecgoad8sng2taer5sasccctaiasss,ihhpnfrfclilclooeuwwdhpeherdoedtdigengceettssihooeonfrfaffcogoorrremeecepcamrasestehteneeddtnststrariaanvnndessafaicoctnrticwiooonanmsrsedttooopthmmyhaaseninecaaxaggtleeecnpoptrnrieitccrfeeaevctvtoiso.lvlaeTat,ihileiyaty.Cn.doTThmchepeaarrenelylsaatuteesiddemsmacnraoorkmkc{-motmoso-atdmoritfaykrskeplerteticgsgeaanisnwto hoarpeopsloesrsreslioaootnndivqqdeuuuatraoliliinnffgayytiwiunnhrggialch hchthaeeesdhhgheeefdsdlggoieswedsdintftcrolarrunfdssaeadcftnriinossnaofstahaetfefceercdtcctsonstamcetaiaupmrrrnaieolinhngegngsnas.ss.GivGteerenaniennerscraaoalcmllyt,e,iotthhoineesthlle1ee2nneggmtxthohtenonofttfhet.iifmmfNeeecootoivvsveieeg,rrnwaiwhnfhiidcicacrhnehtc3l3caMMosmshimhfeoeideddgdgieetisnsytciotascseoxhxspptfooolssfouwsraehleetosodtgithnehsethvwveaaeprrrieiarabdioibildslitcyydoiuninntrfiinfunugtutueuwrdreheaincdh ehcaaedssdghcgeeoflmoiinmwneoesfsfffeifoctertyicivttpesiinfcveoeesrsenwscwewaasaassstpnesndodotentmsamiatgutanertaareltireigaadlalsfafotosrrrca22na00ss1a1hc00ft,,ilo22on00ws00h99iseaad1nng2ddem2s2a0o0t0n0D8t8.he.scTT.eNhhmeobddesooirlgll3lnaa1rir,feiec2qa0uqn1itv0ucawoleiamnstmgvgSror3aodo1sistlsymninolceoltaitisnioohonn.natfallolwaammhooeudungntetosofwftthehereeCCodoimsmpcoapnnatnyiny'u'ssenrdtaautunrradall gas commodity price swaps designated as cash flow hedges at December 31, 2010 was $31 million. "iTTnhhseetlroloucmcaeatnititoosnnidinnettshheeiccgoonnnssoaao5ltliciddeaaasdttheedfslstotaawtteehmmeennettssoorfdfeiipnnrcgcooovmmieeedeaadnnddicncotomhmperpferohelehlneonswsiiivnvgeeitiannbclceoo.mmReeaeanndcdalammosouusnntftss coooffagfgaaatiminnoossuananntdsdsllorossosemess arecelclaauttmeeuddlttaootdededreiraivvtaatetirivvee chicnooesmmtprfpurormreeehheceenansntsstsieidvvdeeersiaiignnnncscoaaotmcmeideeoinain.nsttocoaiisnnhccofolmomewe include hedges include accumguainls(aotsee)don designatedbeds at he time camings re impactedby are provided in the following table. Reclassifications of amounts from accumulated other accumulated gains (losses) on dedesignated hedges at the time earnings are impacted by the forecasted transaction. El 91 Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm me 83/114 11775588..00008833 zane 1/13/2018 `DibleofComes Table of Contents Migsohcivesadg Gat OTIOOIOUSEHIAIO2O08T0_AHOSk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm ProsGain om Pretax Gain (Loss) eCoprsa Oree Recognized in Other PresGun omReiss Pretax Gain (Loss) Recognized ei C d Tes in Income on Effective Portion e Gat Pbt t reae Ineffective Portion of Gain Comprehensive of Derivative as a Result of (Loss) on Derivative and Year ended December 31, 2010 Oy - (Millions) fore Derivatives in Cash Flow Hedging Relationships For arene fraopcoomnnts Foreign currency forward/option contracts Forincurryforwardconc Foreign currency forward contracts Commodi pce swapcorns Commodity price swap contracts TalTotal Income on Reclassification from Amount Excluded from Effective Portion of Accumulated Other Effectiveness Testing eine Compemenine lene Seconds lace Derivative Comprehensive lneome Recognized in lneome a Cr Amount Location Amount Location Amount 5 TW) Catotss -- 5 OD Coors -- 5 -- $ (30) Cost of sales $ (39) Cost of sales $ -- 54 Inertexpense 3 Inertexpense 34 Interest expense 33 Interest expense -- 3 Coots ) Couatsies = (13) Cost ofsales (9) Cost of sales -- s Tw -- $ (9) $ (15) $ -- Ver ended Desmber 31,209 Year ended December 31, 2009 it (Millions) DuCut beMh eoRi tomtee s Derivatives in Cash Flow Hedging Relationships For sfarorwropisnonncs-- Foreign currency forward/option contracts For curency forward cats Foreign currency forward contracts Commodi pce swap cons Commodity price swap contracts oatTotal Prana Pretax Gain (Loss) rm Recognized in Other Comprehensive Income irons on Effective Portion of Then Derivative A g mi9Tp@rH Amount (58) 55 (18) (21) Pras an aesdre Pretax Gain (Loss) Recognized in Income on Effective Portion of Derivative as a Result of Reclassification from preorried Accumulated Other comes Comprehensive Income omen mmr Location Comore 5% Cost ofsales Amount $ 96 -- 7 Interest expense 47 Coots Gh) Cost ofsales (34) Te $ 109 rr] Ineffective Portion of Gain brs (Loss) on Derivative and Amount Excluded from Feces Tog Effectiveness Testing fsssiiies Recognized in Income lee amen Location Comotme 5-- Cost of sales Amount $ -- nestpee - Interest expense -- Coots = Cost of sales -- = $ -- AcAasssooffflDDoeewccheeemmdbgbeiernrg3311i,,n22s00i1r10u0,m, ethnetCrCoeomcmoprpadanenydybihnaaaddccabubamalulaalnnicceeedooaf ft$$e33r22mciomlmilplilriooennheaansssssooiccviieaattieenddcwwoimittehh.tt3hhMeeaeafxfetpererctatasxn1ne0etrteucrneraeasaliliizzyeetdod olcosassmaiasnsssgoosccoiiaavtteerddwthwietithh nextcash next 12months amajorityofthis balance (withthe impactoffic bycashflowsfrom underlyinghedged tems) flow hedging instruments recorded in accumulated other comprehensive income. 3M expects to reclassify 12 months a majority of this balance (with the impact offset by cash flows from underlying hedged items). to earnings over the EFaaiirr VVaalluueeHHodedggeess:: FoFoofrrfddeteririivnvaalttoiivsveseioninsgstatrriuunmmeoennntttsshhtehhtaetdaagrreedddeesfsiieggmnnaaatiteerddabaunnaddbqqluuaaloliitffyyheaahsfdfiagisrvevaallruuieeskhhaeerddeggreecss,o,tgthhpeeiizgeanidnioonrclooussnsootnnctthhaeemddeesrrii,vvaattiivveess aass wweelll aass tthhee offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. m aFFanaiiarrVgVaelabulueoeHrHeodewdgigininnggcgo--sIntn,etetsrhetesCt oRRamatpteeaSSnwwayapmpsas::yTTehhteeeCCroiommipopaanniyyrmmaenatnaagageess siinwnateeprsre.stUt enexdxpeperennseesuusesiainnrgganagmmeimixxeonoftf fixed sfi,xehde andfloatingratedebt.To ely Canodmfploaantyingagrraetees dfeobxt.cThoahneglep, pamarttianssncppaeiegcpcieaifflbiiaeeomddroriiuonnnwtteetirrn.vvgaalTlscsh,o,estthtmhseae,rtdikhif-eftfeeoCer-oenmnmaccrepekaebbnteeyttowmfweteaeehynneiefeniexteiedrdrainavntnaodluiffnelltooeeaartdteiisngntgegrisainnteteeesrrwesescattopaarsmmd.oeUoudunnandtstgessarccitaahnllesccsuueollraatltreeorddsabsnbegyysermrieeneffeinenrtetsren,erctenhes1ectt0eoeCxaaopnnmenaapsggaerrneeyaednda-d-guuroppeoeofsnntfnnooiestbixoaycenhtlaahtlnege, agpgnaradiiin,nnctooihprulal,olosastsmhooeofrfuttnhhitese.unTnuodnheediremlmrpylaaiycrnikntgo-gtdonde-cembabtamtriiiknnnessgtttsrrouufmdmutehenenetf,st,oewhwhfeaihdciirgchevhaiallnsulesefofhieiesscdtrrgeicvceoesornrieddsseersdde.ciTionhrenidnedetdeosrlaeltssatgeeaexxiqpnpueseinnvosasreel.le.onTsTtshheee(sbssaeeisnffeaiidnirortvenvraaeillsnuutceeeephhxteepiddeoggnneesdesaaaatrrneedfhoHiirisggeohhifllgfyysneceetffuffbeeeyccntttiihcvveeey exchangerate)grossnotionalamount of the Company'sners te swap a December 31,2010was S11 billion, and, thus, there is no impact on earnings due to hedge ineffectiveness. The dollar equivalent (based on inception date exchange rates) gross notional amount of the Company's interest rate swaps at December 31,2010 was $1.1 billion. foreign currency NAAtt DDeoecceemmbvb2ee0rr0633e1,1,,t22h0e0m11C00o,,mttbhpheeaCCnoeoymmpipaarennyydhhaaiddniinnottee$rree4ss0ttr0rtametiellssiwwoaanppfssiddxeeessdii-ggtnn-aaftteoeddaiaansgfiianrifrevvraealsltuueerahetededgsgewesasopocffuounndndeecrrlluyyiirnnwggeiffaihixxeetdderaaiteeosoblbuilgiagaaotnitfiooctnnses.. IInn {hN7th5ror0evceem-ymiyelebalaerorrnmm2eE0edu0dri6iouu,smmt,h--tettheeCerrmoCmmonompotpateenayndduuyeeenctiieonnrme22pd00l00i9en9.tt.oeInadJJ$uu4lfl0yyi02x20cm00t0i7ol7l-i,ooiinntnifccinooxgnnenndeee-ctrcottsi-iofoltnnoawwttiiinetthhgsthihnaeetepiirsoessnustarnnaoscteteiosouofwfnaaaaplesevcnaveomennon-ccu-yuynereetraaeornftEEw4uu0rri0otohmbbiootlhnnleddifiofsonosruraEaannnucaraemmoooosfutuhnientoeotff hVv7aa5ell0uuneemothhiileeoldidnogganleeEaoouffmraaosppo,oortruhtotiiefonoCnnhtoioosmffttsphhwaeeanpffy.iixcxAeeodsdmiiapnrnltteeestrreeedststarraaafttigexeieExdnru-troooofb-b1fool8onnaddmtiioonlbbgllliiiioggnnaatEtetiirrooeonns.s.t r,IIannrteeAAcusuogwgruuadspsettdo22n0011a0s0n,,opttthhioeoeafnCCathoolemmabpmapalaonanunyyncttteeoerrofmmf4iti0nnh0aaettumeendddilel11ir55ol00nyimmEniuilglrlloiiodsoennabEsE,uuawrrfiooalssilroobffe aatamhmmoeoronutronitittzziooeenddfoaolvv0aeemr0rtothimuisinsltddoaeefnbbtthd'ssiesrsreeismmgwanaaaipitnn.eiidAnngg1s lfaicfire.er.sTvTuhalhlte,euCeaCgooeamdmingppeaonsfay1oan8aflltsmsyhooeilahliafsoisnxttewEdwuooirfforiisxe,xeredted-c-taoottr-oofd-lbeooldaaitiaignsnaggptaiiinrnotttneeorrufeesstthterrnaabttteaehdlssaewnwccaiaeepptssowirwfinttgihtehh$aua8nnn0d0gaeggmrrgilyelrelginigaogatnt,denernoboest,toeiwonnyailealllrb,e 350% note sed in October 2008. amount of $800 million designated as 4.50% notes issued in October 2008. fair value hedges of the fixed interest rate obligation under the existing $800 million, three-year, pFaulracirrhaVVsaaleluuJeeaHHpeaenddeggsieinngYg--Fe--,oFProoeruieniggdnnSCCtueurrrlrrieenngnc,cyya::ndIInnEuNNrooovveemmwbibteehrr 2200n0o0t88i,,ottnhhaeelCaComomompupnaatnnyoyfeSen2ntet5er5reeddmiiilnnlttiooonffootrreteiihggenn cccouunrrtreannccctyyrafftooerrsww.Taarhrddesccooenntctroraancctttassctt0os were mdpdaeuerssrkciggehpnaaasottefeeddJtahaapessafnfiaefirsroevrvaYwalalueurened,hPhceoeodndugtgnreeadsscotSosftfewaraalisUUn.g.rSS,e..acddnooodrlldllEaaerurdrtaoaxsxgaowobibilntlihsiggoaaarttniiooolnnoti.s.oTsTnehsahelesisaneemfsfoxaiueirnxvvtpaaeollunfues$eeh2hae5e5dndgdgmeewisslalmmisoaaonttfuuarfrteetdhdebiinnycotaehnarertlrlgyyaacJJitaannrnauoutarearsrly.yoTs22sh00oe09ns9.et.hcTeTohhnueentrdmmaeacratrlrskkyw-ittneo-gr-.e market of these forward contracts was recorded as gains or losses in tax expense and was offset by the gain or loss on the underlying {amaxteorbialliton,whichalso was recorded i tx expense.Changes th valuofthese contract in209throughtheirmaturitywerent tax obligation, which also was recorded in tax expense. Changes in the value of these contracts in 2009 through their maturity were not material. 2 92 `TabTleoofifCCoolmnetreenst:s Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm sunne 84/114 11775588..00008844 zane Migsohcivesadg Gat OTIOOIOUSEHIAIO2O08T0_AHOSk om 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm "The locaton theconsolidated semen of incor and amouonf gtaisns ands luo 0derivative struments designated 5 The location in the consolidated statements of income and amounts of gains and losses related to derivative instruments designated as i val hedges and sila information eativ othehedgteemds re 3s follows fair value hedges and similar information relative to the hedged items are as follows: oa ced Dicer 31, 2010 Gun) on eran Gain low) etetem Year ended December 31, 2010 ins ingle _"_ Regine (Millions) eta Fie Vi ito Ht ite Rtionbips Tate yoo Te yr Derivatives in Fair Value Hedging Relationships Interestrte swapcontracts Interest expense S| a9 eexprentse 16 Interest rate swap contracts Toul 5 Te Total Gain (Loss) on Derivative Recognized in Income Location Amount Interest expense $ (16) $ (16) Gain (Loss) on Hedged Item Recognized in Income Location Amount Interest expense $ 16 $ 16 oa ced Dicer 31, 209 Year ended December 31, 2009 Gin" (Millions) jr -- Derivatives in Fair Value Hedging Relationships IInntteerreessttrraatteesswwaappcconotnrtaraccttss TTooutall Gla Lo)an erative Gain (Loss) on Derivative andi Recognized in Income Tamia yr Location Amount IIneterrsetsteepxepnenssee S $ 1616 s $ e16 Gia Lo) ndeem Gain (Loss) on Hedged Item Regie Recognized in Income Te Sr Location Amount == Interest epee sg expense $ sa $ (16) (16) NNeett IInnvveessttmmeennttHHoeddggeess:: AoAsfstchcieirrcCcuummosstaannmcceespswweaaatrrirnarnvnaet,snytthmtee'CnCotosmsimpapnafnyoyresuiegsenssocpcerrrooasstssicocnuusrr.reenFncocryyshsewwdaagppes,s,tffhooartrwamarerdedtssnatnhdedeffoorereceitiggvnnecncueursrerenencqcyuydiderenenomomeminnisna,attetehddedndeeebtbgta1ti0ohnheseoddgrgeeploposorstretisioonnss aroatetftrmrtihiabbieuuntCtdaaeobbrlmleeofpttaotonhccyhh'csaahnnnaggeenetssgineiinvn esssvpptaomotlteuxenextcscohfihansnaufgocenrherginagsteenerssuomaapereeenratrretseicscooonrrrsded. eecFddooiirrnndhcceeoudrdmmguieulnslacattathiimavvietenmtgtrrseaa.nenstsRllteaahtcteiioooegnnfnfiwweticiittthiohvinienninonoebtscehsaremrreiccqnoougmmisproeprmfreeahehmenenotnssus,initvvtheese cpinnroecetorvgmieaoe,iun. ssTlTohhyrreeelocsosredsed ierinnedcmcguuamemiundludafleoatrrtiieovvifeegtnhttroerapanecsrshlalaaattntiiigooonenn.iiinssAvtlliaDmileumiectieetodmeftb0doseucccriihr3rc1icu,numsm2trs0sut1ta0man,nectcneehstsrssieuuswccrhheeacrasosecrcdnoooemmdcpprilnoleesettseaocrlonrrrisnesguunsbbc.ssyRttasaenwcntaioiapgllslnyyicatcinooodmnmpfilponelreteetaeeirgnilniiqcnuguiusdraoetfiioanmofoofdoufrtntwhhtaseanrpndtreectivoiiinnnotvvuroeesasslcttymtmnrseeenncttoriindettdhhee designated 1s nt vestment hedged foreign operation. At designated as net investment hedges. December hedges. 31, 2010, there were no cross currency swaps and foreign currency forward contracts mITninlNNloonvo.emThvbiesre2t20r00a0rn6s6,a,ciththeieoCbnCowomaempspaarnnpyyarteeinnattleehrreeedddginneotoofahthetreCeho-ymerparalefnolowyansi'tniensgyg.-ittnooev--eflsaaottamiterinnngtgcicrnrootssssEcucruurorperencarynssseuwwbansaippdwcwiiaiytrtihheas,nnToohttiioisnosanwl aaapmmcoounonvteouorftfne$$d22t00U00S. million. This transaction was a partial hedge of the Company's net investment in its European subsidiaries. This swap converted U.S. dmoaltluarre-dbaineNdovvaerimabbleern2e0r0s9tpayments t Eurobased arabe teespayments asociated with th notional amount.Thisswap dollar-based variable interest payments to Euro-based variable interest payments associated with the notional amount. This swap matured in November 2009. mITninlSSleoepnp.tteemTmhbbieesrrt22r00a00n6s6,a,cttthieeonCCwooammsppaannpyayrteeinnattleehrreeedddginneottofattthhherreCeeo--yymeepaarafonluoytan'itinensggsi-ttnoov--eflsloatatmteiinnntggiccnrrootsssssJccaupurarrneenrscyeysssbwwsaaippdiwwaiirltihhsa TnoiitsoionnsaawllapaammcoooununvntetorotffeSd$33U00S00. dmmdoaoiltllllluaiorare-nbbd.aaTissnehddiSsvevatparrtariienasmsbbabllceetriinon2ent0er0wr9sea.stst payments toYnbased variable fretpayments assocstd wih the nol amount.Thisswap. a partial hedge of the Company's net investment in its Japanese subsidiaries. This swap converted payments to yen-based variable interest payments associated with the notional amount. This swap U.S. matured in September 2009. IdIennnaoaddmdiditnitiaiootnnedtootdthehebeddaesreirivnvaoatnitivdveeeriivnnsasttirruvumhmeeenndttgssiunssgeeidnasastsrhhueemddeggnitinnsgginiincnsetrsrtuaemitneneststiiinnmnveeettsiiinnmvveeneststthmmeedengntetshe.edIdgngeeJssu,,ly33aMMnadallDsoo sueesessfcforr2eeei0gn0n,mccuutrhrrrbeeCnnocceyymparny scdiasecushnuoeofedmdtshisneeeavvtseeened-yydEeeeauabrrrtoffabiisoxxenendddonraidatteseerEiEvsauarturoiovbbaaeooshnnneddedcdseggeieicncnugsigriiitniisesntsrsfuftoomrrraeaamnmetmsnotoiuonnfuctsteonrhoftaft7iC7n55so0n0memmtpiiilnalllvniieooysnnt'meEFsatuernrooitsnshaveanednsdgdtem22se77.n55tInnmmJiiulsllllyiooEannunEErduourDprooeessac,,nerrmeseussbbppeseeirccdt2tiiia0vvre0eil7elyys,...thM3eMCddoeemssiipggannnaaytteedd each of these Eurobond issuances as hedging instruments of the Company's net investment in its European subsidiaries. "aTTnhhdeenllnoodcceaatrtiovonantiiinnvttheheecicononssnrosulomileidndatatsteedddseststiaagttenemamteeenndtstsssoonffeiitnnccioonmvreesatamndednctcoomhmperdpergheeehneansresiivvaeseifinonclclooommwsee.aanTndhderaaemmowoueunrntetssoooffrggaeaicinnlssaaansndsdillfooisssceesasotrfeeitlloaahtnteeddetftfooedcdetreiirvivevaattiivvee bpoerltoiwo.n of net investment hedgesout ofaccumulatedothercomprehensive incitooinmcoeme for the periods presentnedth able: and nonderivative instruments designated as net investment hedges are as follows. There were no reclassifications ofthe effective portion of net investment hedges out of accumulated other comprehensive income into income for the periods presented in the table below. oa ced Dicer 31,2010 Year ended December 31, 2010 (Millions) eas nd ondeivate Irma Derivative and Nonderivative Instruments in Nello Hig Roots Net Investment Hedging Relationships Forsign cuencydenominsied46 Foreign currency denominated debt ToulTotal Pretax Gain (Loss) Recognized as CmteraoSeOfer enAtuee rcdd edr Cumulative Translation within Other Comprehensive Income on Effective etiamre _ Miva oehegidi Portion ofInstrument hm Tom wee Amount mw - $ 111 5 im} 5 = $ 111 Ineffective Portion of Gain (Loss) on Instrument and Amount Excluded from Effectiveness Testing Recognized in Income Location Amount N/A $ -- $ -- ---- PrietoyorR eu or Year ended December 31, 2009 Sai mma abn "SrgiRen gn (Millions) aiesd onseivaveIrmo Mik i i adie Derivative and Nonderivative Instruments in NR oeo Ngo nis mw Team ames Net Investment Hedging Relationships `Crosscumencyswapcontacts 5 TW) inertexpons = Cross currency swap contracts Forcig curacy denominsted debt en NA es Foreign currency denominated debt Toul 5 -- Total Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income on Effective Portion of Instrument Amount $ (12) (27) $ (39) Ineffective Portion of Gain (Loss) on Instrument and Amount Excluded from Effectiveness Testing Recognized in Income Location Amount Interest expense $ -- N/A -- $ -- %93 Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ase 85/114 11775588..00008855 zone 1/13/2018 oshesnc goucvessds BET ADTOOT ABH TBS 12000110 Ho https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm DibeotCones Table of Contents `Divine NotDesigned asHedgingInsiuments: Derivatives Not Designated as Hedging Instruments: `DDweerreievdaetisrviegsntanototetdvddieenssciaiaggnsnahatttfeedldoavawsshheeeedddgggiisinnngggriinnsltsruaemrtetnosts nuninucslrduehdefeeirddeeepndsceisesgdigninaattteehdd fCfooarrseehiiggFnnlccouwrerHeonndcgyfefosorrsvweacartriddonnanhddovooepp)tt.iioonnInccaodonditrntaicottns,tahStaMt ffioorrrmmeserrllnyyto f(wfopoerrrreeiiigmgdnanercsciyuugmrnsreeaonntceecidyyaitffnoerrcdwwaaswarhirdtdfhlccoonownnctthrrraaeoccdtmtgsspianaangnnddryceclcoHaimtmicmocmnoosoiihndtigipytsysppa(rarinsiccergeesfesewwreaeaptnpcs)et0daonioondffftsfhcee,tt,CuiinnatspphoarFrn,tl,sothwhieenHipcmeoadnpcgsaetcsstssosoceofcirftacioteanertdaanibwnoivinnhect)erh.rceIcnoommsapedpadaoinnftiyyoenasr,ctvi3ivMniitiepsenrsetecrisouinsto {hmm(epeersaitmallsacs,roirnrleeytssrppaaeescccstotiaicvveieeallytyer..deTTcwhoheiretsdsheeedidnedrteeirarvicvaioatnmtiivvgpeesani.inynsTstlhtricureemadnmoeseninlnttsgeaaacrrrqeruannnioogvttdeademlesnesitniggtnsnra)oattaeenddndiiifnnluehncdetdagugiaintmnigoogneursenailtnattiocoofinshstshnsiape,sss;fohtochiweeaartreerfddoo,wr,eoi,tphfiaitirhrnevvaaunllsdueeewoggafeaicipnencrstaoaninnrddprllroeoscsiseosueaostosn.n these contracts are recorded in earnings. The dollar equivalent gross notional amount of these forward, option and swap contracts not dFeisingcnaaterd sus mhedeginngfoir rnadsintg prurptuoasleces.St55s3 milion 5 of Decemb3e,r 2010,TheCompdaoens oyt hold fue derivative designated as hedging instruments totaled $883 million as ofDecember 31, 2010. The Company does not hold or issue derivative financial instruments for trading purposes. "Th location thconsoldtedsttrmntofncome nd amouonfgtaisnsand losses etdtoderivative instrament ot designated The location in the consolidated statements of income and amounts of gains and losses related to derivative instruments not designated as hedging ramets sr slows: as hedging instruments are as follows: gon) m Yo i Den er 0i 0 CYt oher mia0n (Millions) eisYo es a tit g re ms Timi rm Tae rr Derivatives Not Designated as Hedging Instruments Foreign amenyforwardopton contac Coors Th Towoisies @ Foreign currency forward/option contracts Forigncumenyforwardcontacts ners xp 19) enxepresc 2 Foreign currency forward contracts Commodiyprice swapcons Costofsles 1 Comoran | Commodity price swap contracts "oul 5 5 Total Year ended December 31, 2010 Gain (Loss) on Derivative Recognized in Income Location Amount Cost of sales $ (24) Interest expense (19) Cost of sales 1 $ (42) Year ended December 31, 2009 Gain (Loss) on Derivative Recognized in Income Location Amount Cost of sales $ Interest expense Cost of sales $ (41) 20 1 (20) LocaatnidFolnrVileAmountofDerivativeInsiramens Location and Fair Value Amount ofDerivative Instruments "iTnThshetrffuoomllellonotwwsii,nngagntadabbhlleeerssuuomammtmaoarnizreiissthteheeffcaoiinrsvvoaallliuudeeoatofefd33bMMa''sslddeeerriisvvhaaettsiiv.vee iinnssttrurummeenntts,, eexxcclluuddiinnggnnoonnddeerrvivatatiivvee iinnssttrruummeennttss uusedaassshheeddgdigningg. instruments, and their location in the consolidated balance sheet. OBnsritons December 31, 2010 (Millions) Fair Value of Derivative Instruments DDereFirovivaratctieivvneeussddreesesiiggnnaafttoeedrdwaasashrheedddpggtiinnnggfcinnatsrtrracumimenetnsts CFCIooomrmnmeoimgdcnoidtcteiuyetyrrspseprwnraiitccpcyesfscowworawaippaarcccdo/sonotprntaicostns contracts Interest rate swap contracts "Tontalademriveatsivesdesignated Total derivatives designated aass hheeddggiinngg instruments Teawme Assets Location Obcrcurenascs Other current assets tercaentats Other current assets Otersts Other assets DDeeFrroiirvvcaitaigvtneicsvunneroocsttnddceyefssiioggrnnwaaatteredddaaspssihhoeenddcggoiinnntggriiancssttrsruummennttss Obcrcumentases Foreign currency forward/option contracts "Tiontasltdreurmievnattisvesnot designatedas hdgog Total derivatives not designated as hedging Other current assets instruments TTotoatallddeerriviavtiveeIinnssttrruummeennttss Dect 209 December 31, 2009 Di(Millions) Ae tbat tems Fair Value of Derivative Instruments rysnes Assets Location DDereiFrvoivartaiitigvvenescsduedrseesiinggcnnayatfteerddvaaassrhdheoeddpggoiinnnggcloinnntssrttarrcuatmmseennttss ICnFCoocomremmesoimgdtnoridcttiuyteyrrpseprwnriiacccype forward/option cswoarpaccosncts swap contracts co ntracts Int"TeTroonettstaatllrdrdeuaretmeirevisvaawattitaivspveecssodndetersasiicggtnsnaatteedd aass hheeddggiinngg instruments OOOtbhthecerrrcccuuurrnreetnntasasstseestss Otherasets Other current Other assets assets Derivnoatdtesiigvteedas edging nstroments Derivatives not designated as hedging instruments Pisa AG BETACO HES TAS 1200_ OK https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 7175588..00008866 me u ms e eAs me Amount Liabilities Location Amount $$262=6 -- 39 se65 Obercumntlbilies Other current liabilities tercure itos Other current liabilities Orlibies Other liabilities $ 44885 =5 -- s$ os53 $$1212 ly $ 12 sm $ 77 ToAmount Ohercumentlabiles Other current liabilities To Lustie Liabilities Location $34 $ 34 sw $ 34 sw $ 87 To Amount S17 Obercurenlisbilies 41 $ 17 Other current liabilities $ 41 1 Othecurent bilies i 1 Other current liabilities 1 51 Oterlabites E 54 Other liabilities -- l= $ 72 s a $ 42 sw86/114 zane Migsohcivesadg OGatTIOOIOSEHIAOIO20T80A_HSOk hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm CFoomremigintcyurpericcyesfworawpacrodnotprtaicotns contacts OtOhbeerrccuurmeennttaassseetss $61 OOtbheerccuummeenntliabiilldieiss Foreign currency forward/option contracts Other current assets $ 6 Other current liabilities Co"TmToomnttaasolltdddrieteuyrrmiipevvranaittctiiesvveeswss nanpoottcddoenesstriiaggcnntaastteeddaass hheeddggiinngg. Other current assets 1 $7 Other current liabilities instruments $ 7 TTotoatallddereirvivaattiivvee iinnssttrruummeennttss s$ 79 AAddddititiioonnaall iinnffoormmaattiioonn wwiitthh rreessppeecct 0to tthhee fifair vvaalluueooffddeerriivvaattiivvee iinnssttrruummeennttss iiss iinncclluaddedd iinn NNoottee 1133.. %94 S$ 52=52 s $ s52 s $ w94 TTiabbllee ooffCCoonntteensts: Currency EfafndeCrcedittRissk Currency Effects and Credit Risk Currency Effics: bCyusrprernocsyiEmftfeecltsy: 3MS1M5esemstitilimmloaantteeisntth2h0att1yy0eeanarr.d-aodnne--yyceeraarreucaursrerneeendntcciyynfecfoffmesect,sf,riinnbcculluuaddbiinnigg thhoeedd3ggMiinnbggyi mpmprpaoacxcstis,m, aic ntcerleyasSe2dr n2ne0etitiilnnccle ooommeeianat2tte0rd bi0bt9uatTabhblilees to to 3M 3M erbessyttiiammapaapttreeooinxifnnigmcodleuaoutddeeslssytbt$heh1et5cwefemffefceinlctl3itoooMfnftitornrpaae2nnrs0sal1ltaa0ittioinannngsgdppindrroehofcfeirtsesUaffnsrieootdmmendlleooStcciaanllctccouumnrrareedennaactctbitirreeiosbseuunidtna;otboaleUUn.dt.SSo.a.3nddoM solallclbaatyrrissao;hpnthpgeraoiiixmmnipsmpanaacctdtetoloylffo$ccs2uue2rsrr0r,eenminnccicyyllliffuoldiuniccnitgtnuiad2eto0iro0ninv9ssa.otoTinnvheittshhee indtisrnoaltslnrtarsurufsmem,erne3ontMfstsgedodseoetsdsiiimsggabnnteeeedtsdwtttoeoherarnetedyd3ueuMcacere.oFcfpoonerr-reeyaiiteggiaonnrncdcseuurirrnirvnetanhctceiyyvUeeexnxacicnthhedadaannbSggeetearrtreattstreaanriicdsstkkaisbaoranonnadddgta;thhiaennnsndeaegtngaraadtntilisvvoaeescetiiimmsopdnpaeacgcctateioonafsfssseawwnandapeppltpoiisinnsngegcsVV,oeinemnneecezalzuutudebeilnluaagannbdbboelolrieliivvvaatartrisvsMenintbtooyU.SUS.. Spproximatey 115millon n2010andhad an immaterial impact in 200: dollars. 3M estimates that year-on-year derivative and other transaction gains approximately $115 million in 2010 and had an immaterial impact in 2009. and losses decreased net income attributable to 3M by C`Crserwdeadipti,tcirosismkk:m:ToTdhhieetCCyoopmmrpipacannysywiiasspese,xxppaoonssdeeddftooocrcerreddiawittnlldaoossossprtiiintdotnhheceoeviverencntttoso.ffnnHooonnwppeevererfrof,romtrhamenacCnebocbmyeypccaoouunnnyttreei'rrspskpaarirtsitelss iiinneiidnnt1ee0rrehstterftaieterssvwwaaalppsus,,occfuutrrrheeennccyy ssisnewtslraterupcumtsmie, nncegtonmsmts..omTTrohhdeniCttCyomopmamrtpicipaeoannnsyywaalacaptcbitsaiv,vneakelnslyyad nmmfodoronwinataonrndrcsiaiianttlssdtcenoxxpsppotoouisosturnurorceensottnsootrccaarrceectddsoi.itutHnrrieiosrwkkpettahvhrreroiro,usutg.ghhheTtthChheeeoCmussoepemapoonfafyc'cnsrryeerdididsitkotsaaissppnpplorirmotovviaataelnldssctasopnnadthtccerrfenadoiiinrtpvlieiamiflusoietr,s,moaaanfnndthdceebbyyby aSapaasgneegnrcylryeeieoecfoemtfimfieenttnedhghtnestmstsser,e,acecjoecsoiuiohttrnuhoteineenlrrtrtpdeeppa,rarparnrtrattatrhiyyttiesioesisn.sm r.areel33qqbMMuuaiini rrhhkeeaasdcdss1ratcco0nrirn edpeptddooifies'tsmtxtsspaeuug onlppiscp7gpiuoaiorbbrlretltiencoaascggrtooirrbtleeuloeealttmimtoeheearnnanpstltawssawrshiiihnnecseopnp.nlulatinthhcteeeemrwwmpaiariarthrkhtkieetteswwt.voovTaoaohllfuefuieitCtossooffppmrtrariipamnmansanasarryacyycdttddiooeoeenrnrsisisvvcnaacoottoviitvvevaeeernsrseteidccdcooibbpuuyyannttttetehherenerpaopaagnragrtprireeeetesresfm.moeUUrennmnntddtsaesenrreecxxetthcchbeeesyseeeeddss specified thresholds, thus limiting credit exposure for both parties. NNOOTTEE 1133..FFaaiirrVValauluee MMeeaassuurreemmeennttss 3a3rMMefcfooullillonowgwbssaAAsSSsCCan88d2200,,pFFoaaniirrVVeaalcluuueerMMbiaenesaigsu.arUesmndeetnrtstrahannseddtDaDimnsidscacelrloodsn,suurireserss,v,awwliiuttheh reiessdpepefecitn1eto0dasasssssteehtsesaeanxndtdplTiiaibci,leiotisesththheaaattmaaorreeunmmteeahasautsrweuodauraltefdfaibdier vvaalluue oonn "raTcehrceeeeicisvuvtereardndidntagorsdbseeallsllissaanacanatsdsbssnelotonsorrrheppcsiauirddrbinti0ogetrrbraaaarnsnihsssfyf.erfUroaanrdbliienairpbultihtlisetuysnstianadnandniaonrromddre,edarfelasryiulryrvitrarnaalgunnfessaaiiccsitdivooaennlfiubbneeeetdwtwhoaaeetsenmtnhamemxaireamkxrikietzepteprpsaitcarterhti,iccoiiurppsatahnnotetsfsamaosbosoufefnrtttvhhateehmblaemetaeiwsanuopsruuuterlsdemmaebnenednttddtat.e. mimTnihipnneuiitmsmstimaizzaneerdsskaretthdthepaaulusrsosteioeocsfiftapuobanblnoistsbehwsreoesvruvaalabdhbluileeesreiiannrpcpiuhsutytvssbfboyayr irrlneepququuhteiusrsiiinursgsneictdhhnagoaigtnrtttmhhleeiammstsuoyrstitndoagebbvfssaeeeilrrrvovvapaabelblduelbeaiitnshpeauntdtosmbnbpaemexaiuumursskeizdedtetwwsdhthsaheeeannuoaasbvvetaaaoililfanbboellbdees.feOOrrbvobsamseberslrevovuaiarnbbclpleeeustiisnnappnuudtts sarrec piaiinnrnpdtdiueecpptiseepnnmaddnaeternsnkttweootofpfutatlhhrdteeiucCCsiopoemampnipantsanvnyway.lo.uuiUUlnndngooubhbssesecerairvnsvaaevbbtallleeuliiinnnagppiuithttsseayaaersesdeiintnepopuirvtslstieatahbtailbltiartroyseeffedlpldeeeccvuettetptlhohdoenepeCCtdohobmmabpsepaesatdnnyyion'snsfaomarssamssaruuktmmiepotpnitdioaoatnvnasasioaaabbbbotoaluuietnteittdhheetfrhcfoamtccitoorsrcrosuummmrscataerarsknkeceetts. The bphcaieirartiatcrcicsphya.ynitisLssbewbvrreooolukkle2ednnidundsopoeuwwtisnniivinntactlolouuidtnthergqreetuehoeeltevaveseesslepsr.t.iLoLcereevlvfeiaelobl is11liiitimynpipdluseatvsraearslroeeptqeqsuduoobotteaedsdleppadrribuiccipeeolssne((utuhinnenaasddbjcjeuuisssvttteeienddmf))aoriirnnkmaeaattcstiti,iovvneqemuamaovtraaekirldkeapetbrtslsiecffeioonsrrtifihdodeerenndcttiieircccnaaulilmacaslsstsaeosntscseiosmr.iTlahre aclaiisastsbeetitrlsitodioerirsc.lliLaebbeyiivliieotelries2dsiiiinnnpmrmuaetraskr,ikenetctsLlsuettvdhheaealttqaaurroietnnenodpottpuaraticcrcseteeivsu,efn,ooaarbnnssddiemirinnviplapauburtltssaes((isoonettpthhsueetorrstrtfhaloiaarnnbtihqqleiuutoioaettseeddinpporsariicccteeisvbs)ie)ttltimahtayat.trakaCeeraettso,oebgbqsosuereorirvtzveaaadbtblipleoernifcfowoeirrsttthfhhoieenraaitsdsshseenttvtoaiocrlraullaaitoabibrolisnliyimty,,ilar hicarchy isbased upon the either directly or indirectly. hierarchy is based upon the lowest eveofinput tat isignificant thefirvaluemeasurement. Level 3 inputs are unobservable inputs for the asset or liability. Categorization lowest level of input that is significant to the fair value measurement. within the valuation Assestetss aanddLibhiatsare Liabilities that are MMeeaassuurerdeaadtt FFaaiirrVVualeueoonn aa RReeccuurrrriinnggBBaasssis:: seFFcoourrr i33tMWi,e,saa,ssassveetatssilaaannbddl-llifaoibrislliatliieeseitthnhsavatetsaatrmeeenmmteesaas(suiunrrceeldduadaetfdfia5irpvvaaarlltueoefooinnna vraersetccmuernrutinsgbirbaastsihiseispCprorinnimsmosaligriildlyyatrreeedlalBteaaltt0oaanavcvaealiSilhabeblelete.)-ffaoonrr--dsscaaellreetammiaanrrkkdeeertaaibbvlaleetive sFisnoetslcrtluruourmiwmteiinenestgn,stpsa.a.vDrDaeairegliarrvibavalpeath-tisifvvoaeern-sssidiannalcecbllluiuneddvseeecpscrataimssmhhealnrfiltooslwwy(ihanhecceddldgurgedsesess,de,sainmnsiatpeetearesrestrtorrfailtieenavsstewwsiatampvptsseoeanattndshdeimsnmoetoshfseat cCneieottaniislnnovvlaeeidssstatmmtteeednnatBnthdahelebaddgnigecesels..eSTThh.eheeetS)iienapnfnaofrdramotcerealrtmyitoa,aintnthiedinreeohtrhineweveartieve Cmmfoaoatlmlteoeprwraiianailnlyg'fuaspeirafrvviaanagallnruuaceeipammhleseasaassnsutudrereemtammebeneltnenststssponrwwiimrilthcharurrielreyssipapendcedgtcrttetobosasnnseioossnnmfffmonaraat2tnne0icr1saia0lrlessalasdestievt2tes0o0toor9r.tllhiaiebstielieftiisensatnthhcaaitatlaaarrseesreretsceoagncndizloieadbgoiorlirntdideiiisss.cczllSooessepeeaddrdsaattteiflyar,irthvvaealrlueueewiiennrethheneo Company's f'mancial statements on a recurring basis for 2010 and 2009. 3s3M eMtususseeassndvvaaarriiboouuisslvvaa.lluuaFatotiiloolnnowteeiscnhhgnnisiqquu8eesds,e,wswhrihpcitchihoaparnroerfptirhimmevaaarlirluyabitbaialsoseneydmdeuutpphooonndtotlhhoemgmiaeraskrkeuestteaannddfoiirnntcchooemrmeeesapapeppcprtroioavaecchfheienssa,,nwwciitiathlh aresessspepteescctatnt0od ffiiinnabannciciiaasll measuread fi vale, assets and liabilities. Following is a description of the valuation methodologies used for the respective financial assets and liabilities measured at fair value. Pigs eihciesodgr Go ADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ne 87/114 7175588..00008877 -- oss OTS 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm Anite teste som tr Available-for-sale marketable securities -- except auction rate securities: ttt ttn tiny tin gs Ate Marketable securities, except auction rate securities, are valued utilizing multiple sources. A weighted average price is used for these toy pr et securities. Market prices are obtained for these securities from a variety of industry standard data providers, security master files from Pre To be Homo web `laaallrgggooerriift'thmhmmatntocoidadeletitenersrmmtiitiunneteitothnhese,ddaanaiidllyyoftfahaieirrrvvtahalilurudee-tptooabrbteeyuussoseeuddr.c. e33sMM. cTlchaleasssseisfimfiieeussltiple prices are used as inputs into a distribution-curve-based 95 esc Table of Contents ET---------- U.S. treasury securities as level 1, while all other marketable securities (excluding auction rate securities) are classified as level 2. mmm Marketable securities are discussed further in Note 9. itle cele cies to i cel Available-for-sale marketable securities -- auction rate securities only: stint 3, csty cc sc ed01. el csi As discussed in Note 9, auction rate securities held by 3M failed to auction since the second half of 2007. As a result, investments in mmmiipelse ir p rr auction rate securities are valued utilizing third-party indicative bid levels in markets that are not active and broker-dealer valuation Tem i models that utilize inputs such as current/forward interest rates, current market conditions and credit default swap spreads. 3M classifies these securities as level 3. Antietam Available-for-sale investments: ers ict cutis 3 at Cig tk aly tc msc te Investments include equity securities that are traded in an active market. Closing stock prices are readily available from active markets eT and are used as being representative of fair value. 3M classifies these securities as level 1. eatne Derivative instruments: ES ------ The Company's derivative assets and liabilities within the scope of ASC 815, Derivatives and Hedging, are required to be recorded at a ra et fair value. The Company's derivatives that are recorded at fair value include foreign currency forward and option contracts, commodity a oa price swaps, interest rate swaps, and net investment hedges where the hedging instrument is recorded at fair value. Net investment Dep n ertyoeee hedges that use foreign currency denominated debt to hedge 3M's net investment are not impacted by the fair value measurement Ee metawea standard under ASC 820, as the debt used as the hedging instrument is marked to a value with respect to changes in spot foreign a mom aps tomy a currency exchange rates and not with respect to other factors that may impact fair value. is ied teryCrs dsm is es | et 3M has determined that foreign currency forwards and commodity price swaps will be considered level 1 measurements as these are seat ema: traded in active markets which have identical asset or liabilities, while currency swaps, foreign currency options, interest rate swaps So a i ar and cross-currency swaps will be considered level 2. For level 2 derivatives, 3M uses inputs other than quoted prices that are ro sy Si ab eh oe ie observable for the asset. These inputs include foreign currency exchange rates, volatilities, and interest rates. The level 2 derivative ota positions are primarily valued using standard calculations/models that use as their basis readily observable market parameters. Industry pa mt ea standard data providers are 3M's primary source for forward and spot rate information for both interest rates and currency rates, with T Ee r nay SS A Det ae Pte Oho resulting valuations periodically validated through third-party or counterparty quotes and a net present value stream of cash flows " model. 96 Dears Table of Contents Thorp ot many es ts en ta The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis. I (Millions) Description ==Assets: Noh me Available-for-sale: Er Marketable securities: reese xin + ms U.S. government agency securities Fair Value at Dec. 31, 2010 309 $ em hE. 5 https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm Level 1 rss 1758.0088 Pe Fair Value Measurements Using Inputs Considered as Level 2 Level 3 sows -- $ 309 $ ane88/114 zane Migsohcivesadg Gat OTIOOIOUSEHIAIO.2O08T0_AHOSk Hom 1/13/2018 https://www.sec.gov/Archives/edgar/data/66740/O00110465911007845/a11-2060_11Ok.htm CFoorrpeoirgantgeodveebrmseenctuargeesncy secur 5a5n =- smsn Foreign government agency securities 55 -- 55 =-- `ACCCosoomsrmpmtmoebrreaacrtcicekiaadelledppbsaatpcpseeearcrrursit:ies 5 ss 472 -- 472 55 55 AsCA`srAeueutdt-tobiomtamcaaokbbreiiddlleesreleooclaaautnnreirrtdielelsta:teedd 73w9o7 -=--- 33[99)77 ,_ Credit card related OtEhqueirpmentlas relied Equipment lease related 149 38338 Ee--=-- 149 3338 = UUUSS.S.O..thttmrrueeenraaisscuuirrpyyassleescceucuruirrtiieetssies 02998 B=-9l9- =--8 e OtAUAhu.uScec.itrimoosnneucanruatirctieeitpissaeeelsccsuuerricitutiireeissties 23 77 =-- -- 23 =-- 7 DeriIIvnnavvOteesitshttvmemereeinsnntetsscsiuarmiteiensts -- assets: 229 21 2-- 21 =29 -- = DFeIFornirotvereaeirtiegigvsnntecrcitunuesrrtrraesunwcmcayypefnfcotosorrnww-ra-aarrcdadtos/sspoetptistio:onn contracts contracts 838 32366 22 = = Interest rate swap contracts 39 -- 39 DLeLriiaibbviailittsiiev:se:instruments -- lilies: DCeoFFrioomvrrameetiiinggvnnie ctcinuuyrsrtrrpreerunnimcccyyeesnfftowosrraw-vp-aacrrloddian/iobropiapltciiitotoiesnns:ccoonnttrraaccttss Commodity price swap contracts =852 825 =-- =-- 5 5 997 `TTiabblleeooffCCoomnteensts: umn) (Millions) baRactso: n Description AAAvsviMsalaeitrlbsak:lbeletea-ffboolrres-sasaleleceu::rities: MCaUUorSrk.S.pe.otaggrbooalvtveeeesrrdennecmmuberenisntteitecaasug:greietnnicceysysseeccuruirtitiieess AACs"osAssruepttto--orbaamactocekbkdieeelddbesstleesocceaucunruirteriieestis:te:sed CAreudtoimtcoabridlerelolaatnerdelated OtEhqeuripmesnst ested Credit card related Equipment lease related AUUS.SuO..tthttrreeeoraassutnuerryyssseeceuccruiurtiritieeesss Auction rate securities InOvetshtemernstesries Other securities DDereFiIrnovivvraaeettisiitgvvmneeiecinnunstsrstterrunummceyenfntotssrw---a-radacastspetstis:o: n contracts ICnFCotooemrrmemeimsgatnoirdctaiutyeyrrspepwrnriaicccpyeescfsowworawapnpacrucodon/sntortpratacicottnss contracts Interest rate swap contracts Fair Value at De, Dec. 31, we 2009 mar ViseCdontsam Tes Level 1 Fair Value Measurements Using Inputs Considered as Level 2 Level 3 s $ 24o%91 s =--s 2o4%91 s$ =es 266 266 s50t175s --=-- s5i71s5 -mio.- Ed3107 70 -- ==-- 107 n570 -- ==-- 13 0s94 %-- 94 e=-1e3- -- =5-- i558 -- =n-- E-N5-8 -=-- 5 11 11 -- -- 2 2 ' _ st2322 2r222n =-5- 1 r=o 54 -- 54 DLeLriiaibbviailittsiiev:se:instruments-- lilies: DCeoFFroiomvrraemetiiiaggvnniectcinuuysrrtrprearuncimccyyeefnfsotoswrraww-ap-arcrdlodiona/ptobtrpilaiticiotoitnenss:ccoonnttrraaccttss Commodity price swap contracts %931 993 1 pe= pe Ee 1 1 in"TtThhheeeffoalbloolwalinblgaotoabbvlltweeheapptirroouvnvsiiedddgeesssiargeconilsnriefciocannctiluinactibosneorofvftathbhelebebeiegngpiiunntnsiinn(ggLeaavnnedldeen3)nd.diinnggbbaallaanncceessooff ems items mmeeaassuurerdeaadtt ffaiirr vvaalluue oonn arreccuurririnngbbaassiiss in the table above that used significant unobservable inputs (Level 3). uns (Millions) Satesere astonrtsortsoy Marketable securities -- auction rate securities only egimingbalance Beginning balance "Tolgain or losses: Total gains or losses: 0 00 ano 2010 2009 2008 5 35 TF $ 5 $ 1 $ 16 Pips eihciesodgroTADOIOBS0IOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_11Ok.htm sone 89/114 11775588..00008899 sats ipso ovIcHeedonGanBETAOCO IOS OD7OAS 11200110k Hom 1/13/2018 IIncnlucdeldiuinndctaehmedirngcosmprehensive income =2 = Included in earnings https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm -- -- a(23)) TPPurraucnIrnchshacfsleauersdessies,,dnsiaissnnsaudonaltcnhoecersero,scu,otaamonndfdpLsrseeeehvtteteelnlemsm3eivneetnstisncome 2 0 a@6 (2) (-=12) Endingbalince(December31) Transfers in and/or out of Level Ending balance (December 31) 3 -7 EE--5 Ey AdAdfdirdtoiotminoanoltahllelooscsssoeemsspiirnnecchlleuudndesedidivinen cieaanrrcnioinmngegsfdodu:ueeftoorreecclaasssiiffiicaattioonnss `SSfSreceocccumuurriroitititiiheessessrsstocolkollddmdedpuurrleriihndnaegtgnDstthhieevepecpeieernrimciooobddmee3eern1nfddoeerd:dDDeesceemmbbeerr3311 Securities still held at December 31 == =(@2) ---- -- (6) IaInnnaaalddldiyiit)i.oon,R,tetfhheeerpptlloaannNaaostset1ss1o.off3s3MM 'seppeennsssiioonnaannddppoossttereitrireemmeenntt bbeenneeffiitt pplanls arreaemmeanesasuursreedd aatt fiarirvvaalluueeoonn aa reeccuurririnnggbbaassiss ((aatt lleaasstt annually). Refer to Note 11. AAsssesettss aannddLLiiabbiliitises tthhaattaarreeMMeaesasuurreeddaatFFaaiirrVVaallue oonn aa NNoownerceucurrrriinnggBBasaisiss:: `DDoinsiaclnsoscuorelnsaoarvreesrereerqbqcuaueisirarseesddrinfopoirerrccnieerortgdtaasiinnsauasbsssseeettqssuaeannndtd1ll0iaanbiilbiatiliestrlethhceaoagttnaairtreeiommn.eeaaDssuuurrrieendag2at0ff1ia0irravvnaaldluue2e,0,0bb9uu,tt asarrueecrhreemcceooaggsnnuiizrzeeeddmaeannntddsoddiifssccflloiosseevddalaautteffiarievrlaavtaledluu.ee primariltoylong-livedasst impairments in 2009. on a nonrecurring basis in periods subsequent to initial primarily to long-lived asset impairments in 2009. recognition. During 2010 and 2009, such measurements of fair value related ""TTThhheiesfftoaloblloewlpinlrgoatoavbbliwleedhppierrofovnviiirddgeevssaiilnneffooarrmnmdaattmiiooonnbubyynlleoevfveelllfonfoogr-ralasissvseeetdtssaaasnntdd lliimaabpbailliitmeimesesnttthhsaattfwworeetrrheeepmmeereaaissouudrrseeddinaadticifaatrierdvv.aallRuueee foonenaroannNooonntrreeecc1uu(ri*riPnnrggobpbaeasrssyis,.. plant andequipment"and Intangible Assets) fo further discussion of accountingpolicies elated tolong-livedsset impairments This table provides the fair value and amount of long-lived asset impairments for the periods indicated. Refer to Note 1 ("Property, plant and equipment" and "Intangible Assets") for further discussion of accounting policies related to long-lived asset impairments. 99%8 `TTaibblelooffCCoonntetennttss ac"TtThiheeorrneeswwreeelrraetnenodo ltlooonnlgg-o-llniivgveevddeaadssseaettsiiemmppiamaipirrammierenmntetssntffsoorra2s200d110i0.s. cLLuoonsngsg--lilinivvNeeddoaasst4se,ettwiiimthptamhirmcpoemnptsalffeoortrie22c00a00rr99riyniinmcnclgluuaeddeeddmtnthheooptpfoorsuruistcioohnnnaosofsfe2tt20s000w99rrrieetssittnrruuoccftatuurnriinndgg. iiainnccmctilloupunddseaeddreiiilnnartoooefmppdeecretreoaartnttliioanntinggngii-lnlnoicncvogoem-dmleeiavsrreesedessutaulilstm.se.ptIIanianraamsdcsedtnoiitticsooinansattodtoitteshhcdeeusrrwiseethessthedttrrUuiunKccttpNuuarrosiintsnegpgo4aar,cctwtiiivvptriihtoiiedtshus,e,ctiicninooJJmnuupnancleeetit22ev00ic00tay99torrthfyheeinCWCgo'omasmmpSepaocaununnryytirtoreyefccSsooyurrcsddhteeedadmsasseS$tD11si33wvmmiriisitlotlelininoo(nnowfifthainnd t`htiahmweeapSrSaadiaftrfemheyetey,pn,rStSeooecdfcuuucrceritirttityyaoainannnfdldoinPrsgroop-tltaiecvsctestodiponoanSrsetsSreetv0rsiv.caicesescssoobmcbupiusaesitteinindetesowssrsisutshepegogthmnmeetenUhntetK).e.xpIIpnanisrJJsauuptnnoieero2tn20p0o0r0fo99d,3,uM33c'MtMsiwoenwxsiaassctntinionvotgiittifyUfiieKeoddfpa3thhsMaastp'sotthrhSeetecUcUouKnKrtigtagyocovStvesyersrnntienmmOmecensnttDtodbdieveecicrsii2iddo0een1dd0t(t.wooithin gAAacwcccaoorrrdrdditihnngoegllpyyr,,ou33dMuMcptteieosasntmeieodoftuthihntensetplleoaoxnsngcsggepelloiidrv'vteesedddttoasshsatsercsteocsmmaaaspsiseanooticicntiiogasmerteexuddppeowwycinittttehhhdiehthceeeaxsUUnphiKfKrplaapotgiswaosssnps.pooAorfsrt3tMaaccrt'tesiisvveuiilxtttyyi,fsotafiosrnsrrgoreceUiccKaootvevpedaerasarssbpsailoebirstytiwwcelwhorihnetitccrwhyahrciitinstnddeiininccaOdattoecedtwdonttbhe1ar0tt2athhh0ee1a0aarts.seste.t cvvgaaarploliuuuteeaploio,ntffgo$'4s4d11ceammrtriyleliiinomgnltmaiihmnnieJloJuunuunnnereoet2e2v0x0an0cl0e9u9ee,.do33efMdMsptuhrpcierhimmraaerasmirsilailyisynu.iusn3segeMssexcaaopddneiiscssictcdeoeodurunscnatetesddhheccfealaossewhhvfsf.leloAow3wsmimaondproeuedtslesul.ltth,haaatstusuosscesisaitinenpdpuutatsssssestucschwhaeasrseniwnetrreirteetestntrrdaaottewssnaanntodcacoofsastitrooff capital, to determine the fair value of such assets. 3M considers these level 3 inputs. Your codedDecember 31,1009 Year ended December 31, 2009 ions) (Millions) D_DLeesocc_rniptgi_onl_iv_ehd_eud_asnsd_wees_d _ Long-lived assets held and used paa ve Aotmeorlrenady siolmoers) __iU_gn_etle_ros_dy (TootGsanes Fair value EE =F =F ase $ 41 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets (Level 1) Inputs (Level 2) Inputs (Level 3) $ -- $ -- $ 41 Total Gains (Losses) $ (32) Fai ValueofFinancial Insiraments: Fair Value ofFinancial Instruments: `iTTnhhveeeCsCotommmepnaptna,nyay'c'sscoffuminntaasnnccpiiaaalylaiibnnlssettr,ruumbmoeernnrttosswiiinnnccgllsua,ddeaecncadassdhheraainnvaddtcicvaaesshhcoeenqqturuaiicvvtaasll.eennTtths,,emmaaiarrrkvkeettaaabbllleeossfeuecccuaeursirthieeas,n,daacccaccsoouhunnettssqrreeccueeiivviaabblveles,,acccceerolrtutaaneiisnn rnecteivsabl,e, taianccevccmeoosuuntnnmatttsseupnrpateaysoy,afaabtbclhlceeeo,suaaennnitddsnspssthahryoaoarmttb-eltfneetc,r,mmboAbbroroovrrrworaiwnogiiwnsg,ilsannanagdsndsadbdleccelruumirrvar-earentkniftevtteppoaoocbtrorltinieootsrnnaoucoftrfs.lleooTnnshgge.-attfeneardmimrnviddaneelvbubetetssaatppmopepfnrrcotoax,xsihiminmaaaanttdeddedictccaiaasorhrnryyeitiqonnuggcivevvraatallaleuuinenetsssdb,eberaeicccvacaauoutsuisevneetisoonffrstetthhcreeeuimvssehhaonobrtrlttes.-,, arttaesrcrelmorrneencgcao-ottrrudedrereedmdoaadfttefthfbiaetirsreIvvnaiaflnlousurteermssuamatassieoininnntdsdw.iiiccAtaahvtteraeedidlsanipnbetlctheht-eefopoprtrr-ehesccaeeeldedciimannrggadiridknsiegsctcalalboomslseouuursreneestsc..suTTrahihtniedeeCseCosaotmnmidpmpaainatnnveyyedsufutaimtiilrleiinzvzaetsdld,utteihhnsioirandf-d-pdtpahirateitrostyyn qqtfoiuunoceatensercsttiaatoiolncietdnsiestirmtmiravuatamtteeinvffteaasiiirrnfvvsoatalrllluuuomeewsse:nffootsrr, its long-term debt. Information with respect to the carrying amounts and estimated fair values of these financial instruments follow: Lm(aMneilgliwotnensr) m deb, oxcdingcaren potion Long-term debt, excluding current portion m 5 e4wm v 5 iaeme December 31~ 2010 Carrying Fair Amount Value 4,183 $ 4,466 ptt December 31~ 2009 Carrying Fair Amel whe Amount Value 5 sm 5 5m $ 5,097 $ 5,355 "TaThmheoefufniatriorvvfaallluuoeenssg-rretefeflrleemdcctteeedbd aarbbeoofvveeercecononcnseisdiddaeebrrtothvheee iteerrmmmspooffatthhecebrryetelclaeaetrteetddaddidneebbftitaxabebsdse-enont-tlttohhaeetiiimmnpgapcaintctstesrooefsftdrdeetrrieivvsaawttiiavvpees/hetedhdgagtiiannrggaecadtceitivsviiittgyyn..TaThtheseedcscaaimryrryiinvngagle Phameouwnt soofcloonvgI-tcehrmivdeelbetdrpefoerreGnucaeBdSaTbAoGvOeIiOsIimGSpOaTcIteOdUbTyAScer1ta2in06fi0x1e1d0-tko-folmoating interest rate swaps that are designated as fair valsueone https:llwww.sec.govlArchivesledgarldata16674010001104659110078451a 11-2060_110k.htm 90/114 7157588..00008900 wn sh TOTES 1 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm tty bedbo ei Faron ty Copy ig rf Comey hedges and by the designation of f~xed rate Eurobond securities issued by the Company as hedging instruments of the Company's net i mp TE cr Are ET A investment in its European subsidiaries. 3M's fixed-rate bonds were trading at a premium at December 31, 2010 and 2009 due to the Lo es peng Ft low interest rates and tightening of 3M's credit spreads. 99 T Taba leoofbfCCool nntteee nnttss NOTE 1. CommentsmdContec NOTE 14. Commitments and Contingencies optok Open Capital and Operating Leases: Ren opemde pent ssvu S26 lon 010,524 ill 109 S07 lin 2008 1 Mrs Rental expense under operating leases was $262 million in 2010, $244 million in 2009 and $247 million in 2008. It is 3M's practice to ot By 3g Nt kb eet Pin PEs i secure renewal rights for leases, thereby giving 3M the right, but not the obligation, to maintain a presence in a leased facility. 3M has my oF cs hs a 0 be she Uo two primary capital leases. First, 3M has a capital lease, which became effective in April 2003, that involves a building in the United Kio Curse measTage snd ao 0 id te et hanof Kingdom (with a lease term of 22 years). During the second quarter of 2003, 3M recorded a capital lease asset and obligation of my 5 i Gta on rea, 5 bn Dec 0 ete Se approximately 33.5 million United Kingdom pounds (approximately $52 million at December 31, 2010 exchange rates). Second, eo rr 508 es ps conf pty bes et during the fourth quarter of 2009, 3M recorded a capital lease asset and obligation of approximately $50 million related to an IT em mooao investment with an amortization period of seven years. ace pteod ppg ser fone ofene 1, 20 Minimum lease payments under capital and operating leases with non-cancelable terms in excess of one year as of December 31, 2010, mm were as follows: wSpi o | Tm ose (Millions) i a 2011 on i pA 2012 Fr i 2013 Fl n a 2014 ns i x 2015 has 5 i After 2015 Es we Total Le Ans epi rs 3 Less: Amounts representing interest Poem nee pe TM Present value of future minimum lease payments in Som Limbi i Less: Current obligations under capital leases emo icmos -- Long-term obligations under capital leases Capital Leases Operating Leases $ 17 $ 139 18 104 18 69 17 41 4 25 37 64 $ 111 $ 442 5 106 12 $ 94 Wares Warranties/Guarantees: Merritwry nr on Contd rc Shots utaces nd gr bl 3M's accrued product warranty liabilities, recorded on the Consolidated Balance Sheet as part of current and long-term liabilities, are rei trpe ite TT estimated at approximately $27 million as of December 31, 2010 and approximately $25 million as of December 31, 2009. 3M does mes era, vin 3Se tpn hs oesmgs not consider this amount to be material. The fair value of 3M guarantees of loans with third parties and other guarantee arrangements om. are not material. Rt ry ev: Related Party Activity: Mt ts yt lotpry ty tt tyoet fi 3M does not have any material related party activity that is not in the ordinary course ofbusiness. LLeeggaall PPrroocceeeeddiinnggss:: Toe Compysedof iie oho mo tis vrcly t Use Ste, The Company and some of its subsidiaries are involved in numerous claims and lawsuits, principally in the United States, and pp tee ho i vt iy orgpoe Seo oe oy regulatory proceedings worldwide. These include various products liability (involving products that the Company now or formerly aa, ld pons mere 8 et pins Br et manufactured and sold), intellectual property, and commercial claims and lawsuits, including those brought under the antitrust laws, Ts and environmental proceedings. Unless otherwise stated, the Company is vigorously defending all such litigation. Process for Disclosure and Recording of Liabilities and Insurance Receivables Related to Legal Proceedings ---- Many lawsuits and claims involve highly complex issues relating to causation, scientific evidence, and whether there are actual eo po mm tos ret vs Sac ef damages and are otherwise subject to substantial uncertainties. Assessments of lawsuits and claims can involve a series of complex jjuuddggmmeennttss asbboouutt ffuuttuurree eevveennttss aannddccaannrreellyy hheeaavviillyy oonn eestismattesiaanndmdaasasssuumtmptpeitioonsnss.. TThhee CCoommppaannyy ccoommpplliieess wwiitthh tthhee rreeqquuiriermeemnetsnotofsf [ER -------- ae https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 91/114 738.0081 1758.0091 zane Migsohcivesadg GotOTICOIOUSEHIAIO2O08T0_AHOSk hom 1/r1AAe3S/aS2sCC0o1nT8Taoobppliiycce44s55t00i,,maCCtooenntthtiienngagemennoccuiienesst,, oanfhnttdtdhpesrl:e/a/lowatswteeswdda.sgdneudci.wdgahaoenvr/cAneer,cahHacninvaddebrsre/ieeetcdogd,iardrs/spdralsotiaab/ib6ai6bll7ilt4eiie0Ws/0hff0ooe0rr1r1elee0gg4taa6hlle5p9pr1rreo1oac0cs0eeo7een8dda4ibin5lnge/gasse1i1inn-2stt0hh6ot0os_seo1i1ifin0ntsksmtt.hhaatnnmapcceresostbwwahbehleeerreelioitstsccasanno r`rraaeCnnaogsgmeoep,n,atatnhhbyelyCcCioeotsmemtpirmpadaanntyeyirtrehescecooarcrmddtshoslteuthmhneoetomomuosfonsthstettefliliskokaeselslyypaoenesssdsttiiwbmilhmaeeaterleoooslfsfitaothbhreeilai0ltnoysgssie,s,opofrrrltoothbhsaesblllooeww.eeWxencnheddesrooefofttfthhheeeerrsreaatannsggaoeenbaiilfbhtliheeeeserrsseehtiriiemsvsendnastooeofooncnfeetbthbmeeeassptbreoeslsbtteaiimbmr,alsaetteeal.o.TesTshhiehesaat. saCsuumoccomhhupnaaatnnenoseyftstteiiimmetahateltereabdcciiaalsnincntnlyoootsstneobbseeetshmmetaadiademme..aoTTubhnhleeteoCCofoorammbpppooaasn,nsyiyblddeisshleclolCsoososseomesrprssaaiigngnnngyiieffbiieocclafainnletotvseelsesggianatllpheprxerocroceciseesseetdodieifnneaggsssttaeebvavleriesennhaewwsdhohnerearerbseeelrleaivpbaeoibsslisiliiitftbyyeissilsttnimynootahtbpplterro,oabbolaarobbssllsteeamtooeasrtytthhhebeaet camurouendt.of the liability is not estimable, or both, if the Company believes there is at least a reasonable possibility that a loss may be incurred. l1O0O `TTiabblleeooffCCoomnteensts. "aTThhweeiCCnoeomrmpprpaeantniyynegescstotiimmmpaaatteresas biilnnessupuorralainncccieeerrsee,cceteisivveaaxbbplleeerssibseanesceeddwooinnthaasnnimaainnlaaallryyssliissioofmtf,istsnnnduummaeersroosuusssppsoollmiiocceiifeensts,h,teinnncalutuddrineogftti thheehirrceeln xxaccillmuu,ssigiaoonnnsds,,rpeeercritoninreendnatnst ccaassee: alamcamowoouriudnnnsttteriritept chrhaeeastisivcncaogobnnclcoecllmfuuoddpreeadrhdaeiibsalelmikkpoeeoulylnyictttioooebsfb,eeiitrrnseeseccxooapvvneeeerrrieeteddhn..acFFetoorwrtitehthxhoopssesiecemtiisninlssau0urrrrceeelddacmiommvaaestt,rtueeanrnssddwewahrhsesteerrhseestCtmhhoeeemnpCCtaooonmmfyptp'ahasennynyshahautuasrsraettnaaockkfeeentpnhreaaorcgrleerassaiemmer.vr,Fe,ao,ntCtdhhteroheCocmsooermdpispnasaanunyrneaadlly.ssoo mrrmaebtcaotoetretdsr,sswbrwheuhceteerrwivehatetbhhrleeeeCsCtohfomoemprCptaohamnenpyyaahmhanaosysuhnnnaotosotaitfnakickneuesrnurraaenrdraeecsseneertrehvvxeaepbt beeitenccseaaxeuupsiseenecdttetshhfeeteonlairdabeiibcnlioilgvittesyyrlius,nnodottethrppetCrrhoooebbmaCabpbollameenoporyar nrthhyeeec'asoamrimndossouuunrenatcntoecofvefapthbhreleosgilirfaatobmril.tyihtFyeioairssmntnhooooutsseetisitnobifmsluarebedl,e, surancetha iexpectsto recovfeor he expense curred. or both, but where the Company has incurred an expense in defending insurance that it expects to recover for the expense incurred. itself, the Company records receivables for the amount of hBBaeetccaahuuessCee lliotiiggmaattipoinmoaiinassynssunubboyjjeetcctutlt1oi0iminanhihecerlreyennitntcuuunncrcceerhrtataraiginnettsiieess,,enaxndcdeuusnnsffoaafvvpoorrreaasbbellneetlrluyirlninggess oocrr ddoevesdelbovelpmeedseln.tsAcofcououptululrddmoocaeccducvurne,rr,tsttehhersrreeuclcaiannngbbeeenntoocecrerratatio,nryty `foatuphvneafrotaartvthoaierobaCnlbsoleoemrddepcevaavneseylhloomfpplammoyewesnnntotictncotuohlluteilpdmderrareetisseuoullydlttiiinnnnwcfufhuuritrcuchrheatcrcghhheaeasryrggianeressertxthhecaaectsosccdoooeulfdldp.dThrehahsaveeveneCtolaymmmarpetaacetnoerriryidacaeluladravedleinvartebslriselyietbifeeesflef.iceAectvtoefousnntttuhthraheeteCasCdouovmcmephrafpsuneatynur'uyrsl'sinrcgeeh,ssauusrelglttesstsloe,ofmffeanyt,,or `awovWpoaoeiuurlllaaddtbinoloeontstihnhoasarvuvcreeaasanamhcmaeftclaeootrvewiersiaralailngaaedtd.hvveeeBrprasseseereifedoofdfneiicnetxcwoopnnheithrchiheentccchooeennysasoaonlrdlieidddraaeettvceeeoddlrdoffipiennmdaae.nnncTctiihsaale,l ppCtoohoessmiiCttipoooamnnnopyofafcnttuhhyrerpeCCenrootilmmyopdpbaiacennalyilye,l,vytaearskkctiihnxngaatiminsnitutonochsaaccficucsootuueursnnettticimihtassatrssegiisgegnnsoi,fiffipiifcrcaaaonnnbtyta,ble eTalsivbatabiiiimlllaaiitbbitlleeeesaaiannnnsddduaorasarssnsoconceociticaapottreveoddebraeeabxxglppeeee..nnBssWeaehsssaeeadrnnedodnsrepeeccrxieopviepvareaibbeienlsesces,e,tnaahnnedddCwwdoemhvhepetalheoneprytmiiitmheaisnsaktesae,bbsrtlehesettioCoeosmtntiipsmmaaanottyeoepralealraibiadoibjlduiilisticttyaymleplpynrretervsveioeioofxuuasilsmslyydeinesdettesietmeirtarsmmtieeisndnteeilmddiatttotoeesbbseeo.nfnopotrtAosbaable Tsreoessutwiumllta,ftbtohhlreeetchacuenurdrrre/eoegnnrattnlesopsrtttopimcremoacbtdteaisbnolgoefsf.ttWahhnehpdpeoortceetlenaantipitmipasarlploieipmmnrpipaiaatcnectg,totaohngneittCnhhseoeCtmCotpomhamepnCapyonammynpy'a'kassenccsyooancndsosoduolilltiiidddoaacntthseeadtdonffgmoienraaiannndccijihuaaelsltfppmuotesnuoitrtisoesn.o,frriieetsssuueltltststsiomioffaotopoepederrlaniatatibioo,ilnnistsiesasnn.ddAccsaassahh flows for the legal proceedings and claims pending against the Company could change in the future. "eTTnhhveeifrfooolnlllmooewwnitinnaggl tarabeblmleeesdsihhsootwwossnthtnheedmmtoahjorrrcceantvaeigrtoorniemeesnogotffasolsiiggbnrniiffiiiiccaaclnntt eleeggaafllommrawathtttieecrrhss ---t-herreeCssoppmiirrpaaattoonrrymmahaassskab/saesebbnsesstbtoos ltiotgiagetaitioxonn ((iiitnnccssllpuurddoitinnbggaAbeAclaeearr)o,), Teanbviilriotnymanedntfaol rwemhiecditathieoCnoamnpdaonthyehraesnvtiarkoennmrenteal lsiabaeinlidtritehsev-r-eelfaotsredwnhiuchnthce Croecmepivaanbylhesa:s been able to estimate its probable liability and for which the Company has taken reserves and the related insurance receivables: pARA(MetsiDplpm leiiocreneamst)robrertm3a1sisbosios Tabs ae7 2010 aw2009 eEd meTW 2008 RReessppiirraattoorr mmaasskka/assbbeessttoos ilinasbuirliatniecse recivabes i126 Ir13}8 119403 Respirator mask/asbestos insurance receivables 122 143 193 EnEEvnnivvriiorrnoomnnmemenentntataalll rrreeemmmeeedddiiiasstiiiooonnnillniassbuiirllaiitniecesesrccivibles Environmental remediation insurance receivables 2 3 3 24 31 31 is is is 15 15 15 OtOhtheerr eennvviirroonnmmeennttaall ies liabilities 0 mm 1 90 117 137 "TTbhheielffioolllloowwaiinnndggasssceotctocioninstsdffiiirrsnstsuddreeassnccrcrieibbeertthehe cssiigegninfiiitchfaveinCtcaolagemnbgaplatallppnrryeooccaseeseeddaiincngcgrssuiienndwwrehhliiaccthhinttghheeoCCioosmmpSpaganinyfyiicsniitnnvveoogllavvleeddp,,raaonnceddettdhhieennngdsde.sesccrriibbee tthhee liabilities and associated insurance receivables the Company has accrued relating to its significant legal proceedings. RReepsipnirtaotorrMMasaksk//AAssbboessotossLLiigtaigtaitoionn ApAsusorofpfoDDreetccereemmpbrbeeersre33n11t,,a22p00p11r00o,,xhithmeeaCtCeoolmymp2pa,an1ny4y8iisinadninvaaimmdueeaddldcdelefafeienmndadanantntst,,, wdwioitwthhnmmfurulolimtippltleheecacoo-p-ddpeefrfeeonndxdaainntmtssa,, tii2nne,885l551y440 lIianwwdsisivuitidtssuaiilnnvcvlaaarriiimooauunsstsccoowuiurttshsttahhcaatttions penatDdeciembnerg31, 2009 purport to represent approximately pending at December 31, 2009. 2,148 individual claimants, down from the approximately 2,510 individual claimants with actions C"oTThmhepeavvanmassyat'jmsoamrjoairstiktyynooffdttrhheeespllaiawrwasstuuoiirttssparaonnddduclctliasimmnsdereesscovklvededadmbbayygeaansnddrccoumurrtenhnttlCyoppmeepnndadiinnnyggaaanggadaiinntsshttethrheedeCCfooemnmdppaanantnsyy aaollrlleeAggleeluuesgseeedoopfefsrssooommneealooffjthhueeryfrom. wowCorrgookmrkpepplalaancncyeee'seexmixpnpoartosshskeuuarawreneosdrltktroopelslsaspasbbicyreeeass.tttooAors,p,mrssoiildcnicuo,acr,tcsycooaouanfcldmmaiseniineeemkdadudusantmstogaorgeroenotsethhfrerearorlomoclcctlchuugeppaeCtapitoieomornnpsaaoallnnddayuulsastitnssndjofuoourutyhnnefddrriiodnnmepfpoerrcnoocddduuaupnccattttsssiomfmoniraanlnauulxflfeupagccoetusudrrupeereddbrbs0yoyanosoatbtlhehiesnrrtdjuodesrefyfefefnnordodmamannttss or generally in the workplace. A minority of claimants generally allege personal injury from occupational exposure to asbestos from porrooduccctassipornevailolauytsClyommpaannypurefmiasbeysct.hteCuomrpaenyd, whic are ofen unspeified, aswell as products manufacturedbyother defends, products previously manufactured by the Company, which are often unspecified, as well as products manufactured by other defendants, or occasionally at Company premises. Pigs eihcesodgroTADOIOSHIOOTASA-2060_1OkMo ane https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 92/114 7175588..00008922 zane 1/13/2018 Migsohcivesadg Gat OTIOOIOUSEHIAIO2O08T0_AHOSk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm "aTThhteeCFComolmpaponiafync'yna'ssmgccsuurbrreyneutnvvioomllpuuammieeroeofdfnnceelwwaiamanannddtpspeeinndnhinedgmfmiuattanutetrergrwsiliilss cssouunbbststitaannnutetiiaafllollbyyellooawwmeerur thchhannlifotsswhheiissltteoovrreiilccsaalltheeaxxnppeeirnriiheennecceep..aTTs.hheeAcCCcooomrmdppianangnlyyy,eexxhppeeeccttss autnnhumadmbtcfboeinelrisrnoiogsfftoecifnlatcmilmwasiismtlahsllhbeeiygsgtiunonrgiiimcmmnalpeogaereixrpessedeerrriciieolonauucissme,iiannnwjjuutirsrliieiensrs,,tehiinenpccfllruuutddueiiarnnesggrwemmeienltelssetocootthnhpetelilrniiocuoememnsattaoaangbnedoedfatottthhomteraurlmcmahcalallgoimgwnsnaeanrntclhceiaivesnes,nl,tshweWthphhiaaillneesrirtnee.mtihaTneihnipeiannsCggt.oreAmeaplcaiactvoinveryedlliybynagccslooynn,ssttthaaenntt 1p2pa0rnr0edo3vvc,aoi2ilne0dsd0ii4sitnn,eaanalntllldwi2ni0itnn0he7ch)caia,sssteaoesnrsidctakaakleeenanxpptptoeelrtilireailtnae,lc,erii,ennwvcceliruhllsdiarinlengpigsrnsee2esv0veene0nnt5oaooffgfttrthehhaeeeteie2rigg0hp0hte1tcrcacjeuasnrseeytsvastgeterriideodidfcttttoooatvavdelverercdrdlisaicceitmt o((sstuutchhcheahntCtroriinamaltspshoaeocncpcyca.uusrtrT.rheeTeddhinnieninC11t9oh99m9c99ap,,sa22en0,0y000rh0,ia,esd220i000n11,, 1p222r0e000s009e39,n,,wt2wea0das0ss4dd,uiacsnmiideisn2ss0e0de7mbb)yy,taithvnhedesCaCoinousurasprtdutpptaeptlholtaerhettee ccrnejlloovussreeeyrocvsofaeflrppdienillac2aitn0,it0iT5nfhfis'ossfeevtcvhiaieddsee2nn0scc0ee,1b,ijbbunaargssyeesddvpoeornpndiattchhlteeaeCbCdydovoueutrrrhstee''sptollgegtahaaiel nfCfiisnnoddmiainnnpgdagbntteyhhi.aaftTtithhnheegeinplsilniuatninhnditceiarffswhehaa,aytdd.rnineoodtt.in presented sufficient evidence to support a jury verdict. This case is being appealed by the plaintiffs and brief'mg is underway. 01 101 `TabTle oofifCCoolmnetreenst:s "uTTshheeeCdCoinomtmhpepaannntyyehhnaadssedddeemmmaonnosnntsertrraaattneedddiinn thhheeessieenptpaeasnstdtetidricalilprprcrouocmceseteeaddniicnneggsss.ChthotantsieitqsrureeesnsptpilirryaatttoohrreyyCprpoormotetpecacttiniooynnbepplrroiodeduvucectststshaaarrteecfeafeifcemtcaitivnveeaaswsrcecullanaiiammbeelddewwtohheenn NtueosastnebaedlbtilihinssehhlthtetheshasaitnttttthehheeneidCireodmmmepmedadianicncyana'llesrccooainnndgdditittiioinoonntnhsse,e,exeipvnveeterenninedisnfegcdsneigicniifrniicfduicicmacaatnst,ttea,anahrcraeeatsa.ttc tCtriorbnuusteati oqbauflebep0netlottrs lsyhthotenhCseCowComimpohampmnapaynal'ynis'ysgrnbreaeessnlppitiecirvraoaetntsodoritryhytaipptorrncooslttaeeaiccmtetiiaoocnnntsopprarsooreddutuutccontltsras.eb.isleoeltovre than NWtthieolelncceclltaoahiniemtmliessnosousfefthuutoenniibCmmepohpamiaigiprrheeaeddnrpypte'eshrralssionotinnges,ax,tpaiaoennnrddieiextnpthhceeeerrrideeenffiocnorepeerbiibneceldeliiicpeeaevvtreeeisssotttdhhhseeawtaahcvvleeeanrrimaahggseeecocovforapstsettorofsmrfoerneasssoowljlvvitioihnnofggmcptpaleelainngymddnsiiannwngget ancrnoddnadffiusittiurosrnseescrcabllratyeiimectnohsdoseotnliniemarptppaoeeirr.r-eccesllodala.ivmme bbthaasasiinss will continue to be higher than it experienced in prior periods when the vast majority of claims were asserted by the unimpaired. CPPollmaaipinnatiinfffyss ahhaavtvehaasesnseetroteefdd2ss0ppe1ecc0iiffiiicclddloojllullraisrsccdlilacatimmiossnsfdf.ooraAdmammaajaogrgieetsiysinonfaapppaprrtoosxxiirmmeasatttreeillcyyo33r1p%1rooofbft%ithhtee s88p55e44cialfaywwiansigutditsas mtthahaagttewweserreetppoereatndcdiainsngegsasagguaaciihnnssatttthhehese, aCanlnodadmmrmpsaaotmnsotyouoafnftttththsheeerireeenmmhdaiaioiennfiic2nno0ggmj1puj0ulrairiisinsdndiaticlsclt,tjiiuboorrnniosssudddgicoohtntiniooonttsrtr.eaeAqteuismirtreahsjasouturpcicethhyrsmsoppifeetcscitsiaffutiiecccsaahttriipeoolsnnet.a.ridIIcintngotth,rhotposhrseeoahccaamibssoeeiutssnsiiptnneswwccihlhfiyaicciinhhmgeplddlaaiiamnrteaitnfgyfespsicccihanholtolooysrnoetocts0toaasamsessseseesraruttncsshippenaecscgiiftfhi5icecsaen, Iidinodlnnilcaar'dtaomroioofufjtnctuhhtreseyCai,Cnoiomttnhmpeyapoinr,ayncro('y1m'ss)ppptlooaetticeennonttsmtii,paablllraloiaiaubnbgitihliltteyi.an. rTTslithyaistseassilswthbbaeaeyctcssaapuueessrmeeru(iatc)sltuthahceiehmaapsmmaloegouaaudninitnntsssgt,ccmtlluhaaileimimapeemlddotetyudypenpifticsceaanlclldllayyaibnmbeteeasadrwr iannrtooehtretyehlpeaittcaiyaoplnliytitcoonstotchhtooemmeepxexltantaeneinnintnttogoffsfutttlhhaieesnang cipcnlllaadaiiiimnvmitssidfuaafa'ggslaadiiiennnfjstuetrnaayds,aiifnfetwwasn,yaaass;n(aadbdd)aootzhzdeeeennfcedodnimifdfffapernlrea'enisnntttdsshedanferfeeeenanorddlfayannatbtlssiwlttaiootyyusumppawwasasayerrrddttssucomloaffiom22n77s55tdaihdgfiafleifnarewsertenomntftjudodelietfinfpetenlanedndadadnentftssesen,vtdtehhareeanltddsaawammbaiatgihgeletssh,eaawlthlyleipgcilehcdaagclaarrcneeonmvndoozptylbaaaittnytrtrsibaaisutusteeet,rdetfiatndoongd bCbiynyodtmtihhvpeeiadaanummyaoelouvduneentfntetoonhfdffoafuuanlugtslh,t aatjnhjuuderrpayyaadalellilfooenccnaasdtteaeisnsttt'oosocseahtaaccurhhesdedoeeafffneleiynanodbfdailnatithtnyeitCfm.oaacmcyepastsauenrniys'outsnlitpitmmhraeoatdtleueaclwyttsotriafienjdodd,ibneietffmaooanrrtdeesaleujyvuy,erry,aa;rl(e(lwci)a)imbtmaihlaindtnyyry,cawacwasnhseioecsshdarcireaesfnmfliivlesaedsrdayeagdbwgayaiiitsnnthssaottteuthh,teeand arCanenosyymopplapvayaeymndmyewenentvti;;enaantntdhdnoh((uy4d)gp)ohmamyatahumnneeyypntclctaaasiosneetssifaafprsraedybbimrdroeonuunoggtthhutttsohoennaabtbneeyshhaoaslfflmftoaholfefppCFllraoaaimincntitpioifafnffnossywfw'shthpohorohaddavauvmeceantsngooeatnst sdsn,uuafufflleetirelmedydaatacnenllyyyai,mmmaeereddedi.wiOccafiatlhtidhfnreujaurw2ryy6n,,1apoanenrnd,dd,iuisumnltlgiimscsaaaetdsetlswye,iitaahn,rroeweuhtich pprpeuuusnrroipptloovirrvettedeedddwaddimtaahammogaaueggtseeoanaafymmSpoo1au0uynnmmttsielarnlretieoossnrpp)aeec9cpiicaffiyiaeemsddeeinsnnttithhntheveaocctloovismmpaclpalslaimainmntastslslb,,fer11ta55cw85teiccoeaannsseeo$ssfi1nit0nhv0veo,ol0dlv0ave0mecsaclnglaadeiism$mi3ssnoimotfiifal1$lll01yi00oc0.nl,0a0hi00me00eeokdsr.,(3lO)esfcsta,h(s(eiefsiv2ve6ie1n((v55po))leovnoefdficwwnhghliicccaahhsoeia1fslsS0mion1slaw0lelheggieceh (mpmiwuilhnllliiiitcoiohvnnae((itdswwaooomal((al22ge))egosoeffsopwwfuh$hinc1iihc0thiamvaselisloldoiosaanle)lm;egg9ae8oppgcuufannesiSeitt1ssii5vvieenmviddolallamvioeamng)ce;alasoaigmonfdf$se$o1b1sne00etwmm(1eii)ellclnliaoo$snn1e);0;i0noc,von0oee0l0((v11ea))sncccdalasa$sei3miimnsnvviooolflllSivvo5eenss;0mtcchillarlaeilimeimoss(n3oof)Sf(cw$1ah1s0i0ecshlmianiillvlosioolnvnltetcoocgl5$ea5si0m0puslmnoiiolftli$ion1vne0 pdd(rwaaemmvhiaiacogghueessasollsoyfosft5$aal5t0le0edmgm,ielhsillelpoiuonCn)no.i)mt.ipvSSaeoonmmdyaee'msccaoegomxepspmelorapiifne$ltn1sca5leaallmilngeidgenllteitohtthnehsa)at;tt hathhneeedccroooenmmaepsp(eo1enn)nssscaiaattseooerdryyiniaavnnnodddlpivpuceunstinctihtliiaavviemedsdheaodmafaa$mg5me0asagmaaerrielalaimgaototneulene(sawttsshtsstitchphheeecaimalfmosioeuodnuailntlntesscgosseppmsepepccliuiaffniiiieentddit.v.seAAarsse oprtevaiomuesalnyisntgaftueld,fthae cCiotnmaopnraynya'ssseexspmeernietnocfethaendCtohempoathneyr'rsepaosonnstciteld ibnd.icate that the damage amounts specified in complaints are not a meaningful factor in any assessment of the Company's potential liability. AwAssopporrteehvveiiroouumssallnyyurrfeeippocortrttueeedd,r, ttohhfeertSestaapteieraootffoWWreyespsrttoVVtieircrgtgiiinoniniaa,,prtrhoordouuucggthsh nittthss AAttCitoiorrrnceeuyyiGtGCeoneunerertraao,l,fffLiiilelndecdoalccsoommCpoplualnaitinynt,t iiWnne22t0000V33 aaiggarianaisgtnstthhditeeamnCCeoonimmdppeaaadnnyyfaannndd al2t2wl00go00e5.od.tiTThyhehreemoaacmamunereunrnfeddadeecbddtuyccretoorhmmspeploSlafaairitnneetstfpssoieerreakwktsoosrrssykuuebpbsrrst'otaastnentcctioiataimlol,p,nebbnpuustrtoauudtnniussocppnteescaciinifnfdiitbeehddee,,acCctooihmrmpaceurpnieetsnCabseatontouoerrrftyyidotdasfamLpmraionagvcgeioedslsepnprCrtiioommuaaanlrtlriylwy,yoWrfokoreersrrteseViiwmmiirbbgtuuihrnrosisaceecmmauenepndnatttaomiofofetntnhhaedeleccdoosistttssin. VppailnrlgeeriugnmeideoalychouainnsicromuesrcirseeonidatndlbcdyyuauntsonshkpseeepndcSeicttafihiftieieeCdfdsooppuruurwinntioi1ttrsii0kvveseert'ddsaacmmcaoaagmgespsee,mse.naWsWnahgthiieoillnmeeeatthnneecdtchcaeoasaenlhfthhaesascrsabrbeeeeebeninenniitennhfaaeicctststipivpvierenogsiviniodncefed2thh0toe1e1af.flooluuNwrrottohhrlkqqeuirauslrtweayriothothfaf2os2e0cb00c0o7ru7,pn,arhttheieoecnoSSaratldateteedooffofWrWehseistst mesVmatiiatrmtgtaeeintribebaeechcaapasuoussrseeseicttbehhlneeetlCClyooammsopokpaeansdrnyaytbnhsebgeleeCilioeoefvuveroetsssttsothhgasaitetvtlbeiainablctaiilhstieetyymmisinsoannnpiamogatrlepmraoceobtniatvbibcltoeyanaanifnneddrhcebensscitcelimimaaisnbaebltshlaeendaistpttrshhienisgftmuiomtef.eh2.a0II1tnn1.ahaedNddcdiooittmiliioopannbl,,iaClCiiotoynmmahpspaassaennrbyyteseisncnlnroaoetictmoaasrbldaleeegdtatooifsotr tthwiso teosthrhtyeiemrrlmamoatcenaaunatfupeafoascsctstuuibrraeleecrrsshlowwshdsheeerforeerenrdaaaanddngeeteffieefonnfaddlaaconansstts'essgsssiavhuearnrieemtohoafeftmlalibaiyibnliitilmitetyyadlmmaabcaeytyfiovttriuuterymniounonnytth.thihseeclaaaswe oaofnfdjotihnntet afaanncdt stsheevavetertrahalel llciaaobbimlilipittlyyaaiannntddabsbsyyetrhtthseecalamamiomouusnntatgooafiffnfsaatuttlwtaao jury allocates to each defendant if a case is ultimately tried before a jury. iRnRecselpsuipdriraiatntogorrhMMeaacsokssk/t/AAstsobrbeeesssiotoolssveLLitiahbebicliiltiaesismaaanndddIIdnnessfuuerrnaasnnecceecRoResectce,efbivvyaaebbxlleeassm::iTTnhheie nCCgoo)mmpphaaennCyyomeespstaiimnmayati'essseiixtssprereerssippeiinrrcaaettioorrnrmmreaasssokkl/lvaissnhbgeesscotolsasimllisba,ibl(iliti)tiaiesps,p, arent rntirnteechnnleuddds,n,ian(itgiiu)irt)hetteahhencoadasppmtppitaaoxrrernoentfstocqqllvuaeuamltiahstye(loocf.fliacc,ilmltatihamaynisdpm(des.regf..e,wonwhsehepetcotohefoserctrstlr,tahebieytmlcealxaiisaismmmeorithhniaainnnssggbb:eese(eanin)gataehsseosefeCrttoremedeoCpodnaonnmbbype'shaaeenxlyfposoefhfrmaiaeassnsyyackmmeopptirlntoormrmeeasfstapotiiilrccvaitlcnolgriapicmmrloaaadinmu)tcss,t),,s(((iiivav))n)adccphhpaaannreggneetss allialnleletegghgeieidnnnlggayeteuxxmrpapeonosausunfurdareecmtotuoixrea eoadcbfhcyoltoac fhifmseasssbCb(h eosesmt.gtpoo.,s,,nthysiei)lli,pecra,(o,4pc)coaotrhalteliomoonriraaoobmftbheceerlrraoioocmfcccsucaupaaprstaseietiotrotnincanallglaidudumusssastgtssne,, dnoanfddthcpcelrloaaCjiiemomcmstsipppollaneenaaoyddfi'sitnnhgmgeuaunssskeouoofrfmraaessosbbbpfeeiussrteatrootsosre.-rccoponranotstadbaieuinnscititnonsgsgapapnrnrdooddduouccettssr allegedly manufactured by the Company), (v) the number of current claims and a projection of the number of future asbestos and other Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm wn 93/114 11775588..00009833 zane Migsohcivesadg Got OTIOOIOUSEHIAIO.2O08T0_AHOSk hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm aim thatmaybe Fle aginst thCompany, (1) hecost 1 resolve rentlysledclaims,and(1)an estimateofthe costo resolv claims that may be filed against the Company, (vi) the cost to resolve recently settled claims, and (vii) an estimate of the cost to resolve anddefendagainstcrtand future claims. and defend against current and future claims. sDDigeenvlieoflipocpmamnetnecnthtssanmmgaeaysy iooccncc)uurrttthhheaatmt ccoouuilldd alomffffefccubttttrhheeeecCClooamrmmpspa,anny1y')'sshseesattivmiearntaeagooeftfcietsostlaiaobfbrlileeitisses.o. TTlhhevlessiee snddee,gvveel1loop)pmmteehnnettlsegninaclculcudodese,t,bbtufdtaearfreeenondotitnlligimmtiihtteeedsdetto,, c(csi0lga)inmmcifhsicaaaannnngddteiscininhmnamntaaghiieennlstatainian(iiain)nngttihtirpenairaglnolucrrmeeeadabddueiirrnneeeoasspfssp,f,lu((iti1ucvvar))ebcclchehlaaatninomggehses,es(initnhi)ctlhthaeeiimmasxiv,xeranaanndgdde(nncvaaoitt)suutrrteeohoefofrfneccasllonaalciivmimiansslgrreveccilcaaeebiiimivvlesied,td,y((i(oivvif)))attitrhhielaelrlaeacgnnoadd-aldapcepopfpseetenslldltoaaentfetdscoeauufecntcnododmmiiennsegss,u,trheess.e (vi) changes in the law and procedure applicable to these claims, and (vii) the financial viability of other co-defendants and insurers. hAAessaaCorremsspuaaltnooyfftihhneecrcceooaststsesdooftfsaagrggegrsereesrssvsieivsveelilynyd2de0ef1fe0enndfdioinngrgesiitpssieeralftaoarnnddmattshhkeiggsrrbeeaeatsteetrrocscuobtstooifferlessoiblvylinSgv1cc9ialammimnissolofflpopeiefrrwsosooinnncssw,hwiti$t5hh mmmiaalllliiiggonnnaaannttdccooSnn1dd4iittmiiioolnnlssi,,on wer recoinrthde ethidrd and forth quarotf2e0r10s, respectively, Asof the Company increased its reserves in 2010 for respirator mask/asbestos liabilities were recorded in the third and fourth quarters of 2010, respectively. As of by $19 million, of which $5 million and $14 million "102 `TabTleoofifCCoolennteesnt:s CDDoemecpeacmnbeyecrm3a311n,b,o22e00t11e0r0,t, tmhheeeCCtoomhpamamnoypubhnaatdadorrreenssaeernryvvgeeessfofofoarrmreoessuppniirtraasttboorrymmwahasisdkcs/hbasebhseetsotosbsillbiiiatlbyiiltmitiaieeysseooxffc$e99e44dmtmihlielrlleioosnner((veexexcctllhuueddCiinnoggmAApaceanrryoo rrheeassseesrrvvueesbs)l,).sTThhhoeed bCbCeeococmamapuupassaneenyoyo'ffscttahrnheesen(p)oii)itranienthsohetriermyreepnanrtteot dddtuihicffeftfisaccmulhltaotyytuniitnnt pophrrroorjejaeenccgmttieinnsoggifthdehaemeolnnotuuucvmmnobtnbseetebraroisyonfwfcachnliacyihmbtashrethhmlaafitatlhbhmaiaslviveteeyrionmaotaltyysyeee(ttxwbhbceieeceeehndnstamhssaesskerrereitsseded,r,vppeaarvttrahtiriecciuuColulaoasrpmrlluyypbawlwniiiysthhhhreraedesssspepteseuctcadttbiotloitsthhhheeetd pwpCiuuodrrmeplpopyor)atr,nttoy5's)pprrrotoejhjseeepccicttroaffmtuoptrrulyeraepiraanosstdbbneueesscatttrooslssythlcaallatiiwtmhameyssmsussbussebrtlsavtnteatsniatldilaliidlylmynroreaetmgmcaoooivnvnetseadtdimnffrauoonmmylthhtlhaeerCmodCefmoufpmelanmpdnaaaynntet'yrss'isawplphsrrei(inrwcceihitppihcalehl eedmxxappkeeeraisrentihcaeeemlnavlancaendrgediaeowwduahshriipgccuhtbyttplhhiieesechmamlselsedyelsnlsvvteouesdstvivaesarrytyhat aVwattittdrairebbliuyybtr)sue,dat(eieytiood),tiihnnieddi)icvvoiitmdmdhuuupaallllatddinieetpfsfelennendefaadcrnalttynsotsrasoslsowthdahaeyatsstcaaardsidesbefeefredetnancdbdlaoaaivnnmett's'shassaghhaaairrhneeoesotfCbfmolumiailpbtiaipllilnteyymdicmeaofnayetsyntidtduuyaermnrntssooiwnnn hthsheeteremllaatahwtweoiofndfjgajomoiiiasnngttieaaasbnnaiddlllisseeeigvvsee,edrraaaanllrdealia(tbybvlp)iliyicttyha,e,llwwsyehhnviieoccrthhalccaann possbic develapments decribed bovethat may acethatcouldaffect the Compestaimanteofyb'lss. vary by state, (iii) the multiple factors described above that the Company considers in estimating its liabilities, possible developments described above that may occur that could affect the Company's estimate of liabilities. and (iv) the several 5AA1ss2oo2ffDmDielelccoenem.mbTbehree3r1C,o23m10,p210a100n,, ytthheienCCcoroemmapspaeandnysy''ssrrreeeccceeeiiivvvaaabbbllleeefffooorr iiinnnsssuuurrraaannnccceee rrreeecccooovveeerrriiieesssbereyllaatStee4ddmttiootlheltriheoensrpenispr2ia0rta1to0orremsmataseskkds/tasosbbeteshsittsoogss aglittaiigtoaitniooonnfwwvhaasisch tS$$s111i2mmn2isilmulllrioioelnlsni,oanntn.hddeT$$hC33eommmCipiollalmliinoopynnawnwwayeesrirpneeacfrireeodcarosardepddepedridtosiixnriemttchaheeetietvthlhaiybiSrrldde2as5anmnfoddirlffioonauusnrruttrhhainqqncuu2eaa0rrrt1eeer0crsisonovoefcfr2io0e01ns10nb0,y,ererc$es4stppemiwceitcoitiltnhilvvieoelhnlyye.i.nrAA2s0es1a0sreerspseullamlittaoeordfsfsktsaoteattlstthlbemiesomsetleionrtnsitgtsaltririegeoaaantccihhooeenfdd.wwwhiiitcthhh its insurers, the Company was paid approximately $25 million in 2010 in connection with the respirator mask/asbestos litigation. `sVVuaarrriiooeuusssffu(ac3c)toorhrsseccoeouxulltddeaanffotfetcwthtthiheecttiiimnmsiiunnrggeraasnnddaaaymmoboueuncntot moofefrrneesccooovvleevrreyyroofifnttihhisse rrueecuceeriivv,aaabbnllede,, (iin1ncc)lluutddhiiennggu)l(dci)eordlnealeayyosfsneinongr oaotrviaoavtioidoidanasnncwceieotohffpipanasyuymrmeerensntat nbbdyy aeilnneggsdauailrlneppsrrursoro;acc(neeiicee)eddtiihrnneeggcsseexiwwtveiiatntbhtlrrteoersweeppehrcsiectsohteopnirtnreesesssupiprinceirrpraastttoomrrmtaamshyaeabstssteikkcm/boaemsdbeeeelsiastnoyssbotellaviatbeobiwnitlelsiitnnyptiihnnesasuufrruaaytnnuccreemeoc,fcoaovcenveldaerinr(aaimgigsie)oet..tnhTTtehhheoeudtfacinefofermeeraeennncocdefebnabeenegtdtowwrteeieaceetenniiopthnthseeofwaaiccinctcshrruuuirneeasddunlrciaeaebrbisillaiitntyyd mFraeneaidmiymbibnbeusudrusrrreasamnmwcerenntftrsseocooemnnitqvthhauebalooerbtrhreeerpyrrohheasraensand.nt.suBDianeelcpaccauhrsaatentohgofeeftsttiihhmeneulahgdgeettlaiammmyoebuebbnteewtttweowfeeeneerennpscaesyieevmttallbeelnmeetseonnfftocraalnaedixmpppeasacyyotmmenedetnhnitetnosoofunfre3aanlhcclaeianrimmde,ca,nonnvodoermrmieeecaesenaiinopnitcngoghfffauuinlnlgscceuoosrnnaccnillcuuesshiieoonnss umobf aeimanrts. may be drawn from quarterly number of claimants. or annual changes in the amount of receivables for expected insurance recoveries or changes in the AAsssupprrreeevsviio(ouCusoslnlytyriernepeponorttarteleddC,,aosonunJalJatamynauaarnrdy 5C5,o,n22t00i0n07e7nttthhaeelCCIonomsmuprpaaannncyyewwCaoas.ssbseeorrvvteedhdwpwiaitrthtoaafddetehccellaCarorantttooirrnyyejjnuutddagglmmCeaensntutaacaltctityoionGnrffoiiuleepdd)oodnnibsbecehlhaaalmlfifonofgfttcwwooovoeofrfaiigtss for rrrieneesssfpupeirirrreeaarnttscooe(rrCdmmiaonasntsktkhian/esaeabsnbebtasoeltsvtoCeosasasbcculllaaeali.itmymTssah.neTTdhhaCceetsoeienontiiin,nnssepuunerrenteardrslsirInrnegesppuirrreeasstneehcnnettDaaCippopps.rr-ooc-xxiiCbmmooauatthrteetlplyyainr$StR11o4a4fmmmtshiileelllyCiiooConnoonuotfniftnttehyhn,eetaM$$li11nC22n2a2essimuoatilllatly,iooGsneriieonnkusssupudrr)eaacdnnliccaseercralraeteicocmrooyvivnejergruyycdorgrevemcceeerinaivvtgaaebblfloeer arecrrgteeaigferoardnredininnncagegmdcecoiodvnv,eteirhrnaeaaggaeedbpopdovrivoeivntdiadbeelddehb.beyTyChttoehhmeapcppatooilnoliinycc,,iieepossevnnaednrdidn6gt0hheoeinfaattlhlhloeeclCDaootiismotcprnoiacaofntfctyCco'ooivsuveoreirtrneenisndducRrcoeoasrstm.tsTssheaaymmioCoanncotguitnoththnyeei,ppMlsoiilniclcniieeasssoiitssaisn,uusneeadetbkbuyrsyedtt0hehecaelnvavaraaarrctiiootoruiuysosnjiiunfndislgsuermederreis.nn.tT1T9hh9ee4 twwaeicitttiChhoornrmeenpssappameencceytd1't,0osibbnerrvaeeadarsds.ttiiTtimimhopnelpaltlaonnittthncceooivCveeorirmanagsgpeuea,r,nwewyrh,sihhociacvhhverueul6lstt0eiimrmovaaftetteedhlley4yrCreaesomsumuelltpnteeadddneyiidnn'scttoihhnmeespuMMlriaeininrnnsne.tesTtsohohtatitaas SnaScuuatppiorrsenemsmieseoCsCiomouauilrdratirs'stinrrouinalniagnltugornoefsfta2o2r00ra00ns33aattcnhhtdaaidtotnwweafalissleslldaarritgngheeell1yry9s9ii.n4n rtAehsaiesgciCpghienofdimfiwicpciaaatnnnhtty'n3usuMmfmrabevbgeoearrrr.dooTiffhnhtgeheeptilhianneissnuumtirrafetfrtiddneeesrfufeertnnedrdsasanunhtteassvnneianasmmtehereevddeiadinnattnhwheeaamamTameehnenrdnedeideedeaddccdotcomdommpopl.lpnaaliianintnitttnhshhauaatrvvneearbmsbeeaeeensvnesdrdoieimsscmmeeiniasstdssledeydidtbbiboeeenccnaaaluousisneesourocfrfesbrstisetlnatlnegedmmacdedenndltesesdtteths1heoyypthhahraeatrvvisee.es tothe case.Thecase remains nits arlysageswith ilscheduled 1 begin i June, 2012 reached with 3M regarding the matters at issue in the lawsuit. Three additional insurers have to the case. The case remains in its early stages with a trial scheduled to begin in June, 2012. recently been or are being added as parties RMResepspiianrtaotorrsMaskk/Asb/estoAsLLiigtaisgtaitoionbn ----AoAcaeraroosTTeeschohonoolloosggiiess O"OnAncAApaprrriil.l 11,,A22c00a088r,,maaassnuuubfbsaicsdtiiuardryeisooaafftrthhyeseeCCloosmmvpaparainnoyyusppupurrcorhdauccsethsd,ttahihenescltsuetoodcicdnkkgoopffeArAcseoaanrraoolHHpoorlolddtieinncgtgiCConoorerppq.u,t,ihtphemeeppnatar,reensntutcoohffaAAceacareroo,TTecceahcrhnenoalodolog,giifeeasse, fll a(n"Adeearrot"a)n. Asepairoaomraynpurfoatcetuctreisonanpdrosedlulsc.various products, including personal protection equipment, such as eye, ear, head, face, fall and certain respiratory protection products. `AAOsspotoifcfaDDlCeeocrcepemormbaebtrie3o1rn,,23W10,a210r10m0,,eAArc-eaLararombaaennrddlt/ooLrrLoCbt,heerArcOcoomCmpoparpan.niiaeensstdtChhaattbpporrteevvCiioooruupssollryyaootiwwonnnee(dd"aaCnndadbpoopeetrrtaatereeddnAAacmeaaerrdo''dsserrfeeessnppdiiarrnaatttoosr,rbbwuuistsiihnnmeessuss l((AAlmmeecrroii-ccaann Optical Corporation, Warner-Lambert LLC, AO Corp. and Cabot Corporation ("Cabot")) are named defendants, with multiple co- Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm oun 94/114 11775588..00009844 zane Migsohcivesadg Gat OTIOOIOUSEHIAIO2O08T0_AHOSk om 1p/1ddr3eeo/f2fdee0unn1cd8dtaasnntatssn,,diinecnlcukdcdinalgmathuhgeeeCdCsofomirmpoanpmnaAynhgct,ytap, srni:n/u/wnmawunewmr.seooertocuh.uegssrodvelea/Afwvrecsnhudsiivatesnstii/nsendvfvgaoaarrrrii/aodoaluutslsag/cc6eo6odu7pr4tet0sr/0sii0non0nww1ah1lhi0ic4cj6hhu5pp9rl1yla1fi0ano0tii7mf8fns4w5alo/alrle1ek1ggp-e2l0auu6css0eee_oxo1fp1fm0omksa.uahssrtmkkesaann0dd arrseebsseppisirrtaaottsoo,rr lca Fperlotdeudc,tsorancdhesereokcdcaumpaatgieosnf)rdoumstAsefaoruondanidn portohdeurcdtesfemnadnaunftascftourraeldlbegyeadbpeerrsdoenfeanl dinanjutrsyofrgonmcrwaolrlkypliancteheexwpoorskuprlesactoeasbestos, silica- related, or other occupational dusts found in products manufactured by other defendants or generally in the workplace. AbAssoiofflDDeieccfeetommbpibererored33u11sc,,t220F0a10l0,,ittfhhieesCaConomdmpdapenafnyey,n,stthhecrrooouuggthhiritetsslAaAtceeadotrooscsuuubrbrsseiinditiraayrny,,dhhafasustrurereeccAoorrcddreeddo$33e2l2ammtielidllloiaosnnbeaasssttothhseebanbedesststelesistctiimmaeatlteaetoeofdfttchheaemppsrroo.bbaabbllee ClRRaieabesbsopiptoloin,tsnAieismsbiebiflrioliiirttcyyparofonodrrOulpgectgtiaalcilaalccbooiCslsotittsrsi,ep, sosarsaanwwtdeieloldlnleaafnesndffsooearr scsseoeutstttlesbemmrseeenlanitttsesdodafainWtnoddaacrjjuurmudredrygegrrnmnLteeaannmnttbsd,,efriiussttaccuunurrerdertnAethnleteyaliyrossi-hhrnearslrueaertddeedsninaa(ashnnbeeiisn"ntfPofoaosryrmaomnaraGdllrsasoirrlriuaacnpnagg-"ree.emmlLeaeitnenstdtbiaaclmmltaooyimnniggss.aAAlcealarcrooa,,ed atCamhmaeobonAongtOg, tAtShhmaeepfeptaraiyrrctiaiDensisvbOibaspasistoiecndaoolfonCAntmothhereperoinarcuamtamibnobeneOrrapnioodfcfayyaleesaaCursobsrscepiaadoccirahharctycioooommnfpapWanananyrynhseseoorlalLddlalrrmeeesgspbepiediryrrataettaooanrrsydyoptphfrreooeiddrxuuipcncotstsssuururednersdefer(rthhttehheee"iP""nAaAdyiOOovSiraSdGfuaaefrleottuypylp""a"bib)na.triaLnfnfidda.baacinnlaidtory/or'irsosoawswlhnlaonerceedadteodf phtthhreeeocvAcoiondOntetisiSnntagghfeaeentnt,tytsiDloibailbviiillsntiitoyygniissoAfffucuArrattmhrheeerrprlialciiymamsniitttOeoeddpCbtabiybcyaoaaltnnCaaaonggrarpreeoenermamateeinontnet eeeannrotdefe$rteh1dde0ni0anlt,tlooe0g0bbe0eedstCwywaeoebaeeornntsAAowciefalaelrrxootpaoainnsndudrCreCaeasobpbofoottnhtsaeionbniinlJJdiuuitllvyyyid1a1u1n,a,dl11pb99li99a5l5i.ni.ttTTifyhhffi.iossAraa,eaggarrnreeodee'smmesehnntatre of indemnifyAcar against asbestosand sic reatd product Hails cli orrespirators manufacprtioruorleyd 11, 1995 provides that, so long as Aearo pays to Cabot an annual fee of $400,000, Cabot will retain responsibility and liability for, and indemnify Aearo against, asbestos and silica-related product liability claims for respirators manufactured prior to July 11, 1995. Ir} 103 `TTiabblleeooffCCoomnteensts: BheBacveaceuaauspsepelttihheedddatathteeeaoofgfmrmaenaeunfmuaefacnctottuurrceesffoosrr arppaririticcsuuolluairtrorrnfeestsphpgieirraaattoolrralallldleewggeeeddlolyyfruuessseepddiirnnattthhoeresppwashsittliieseooxffptteeonnsdedidfi1fi0cfualsfttbteooisdtdeocetsteeuorrrmmslilinnietec,,AAocreraprroooadanuncddtCCsaabboott cehcoxoanpvntoetaasiaiunnpriiepnnslggieaaadslsbltbeehegsesettdaoogssrooehreramisviceleincaatartipopsrecirnolarfitirmtooosmJJaaatnrnhiuuesuaianrsrgyyeo11o,,uft11r99o99fe77t.h.seW Wiapitltlhhiewgtthrhehedissalueeestaaeerrroxoaafpnnrroggeesessmmpeeiernanatttsossbrisiennswptpholaaisclc,eee,,seAAxipceaoaasrroeo'rd'ssatptopooetatreseonbntceticisaautlolpsaHliataobibrioisllniitaltiyylcaiidsloulirismmpitritotnseedddutotcootsfer Jeaxnpuoasruyre1s,a19ll9e7g.ed to have arisen from the use of respirators while exposed to asbestos, silica or other occupational dusts on or after January 1, 1997. TJTouolyddaat1tee,,, AA19ce9aa5rrpooehhraaissodlecelecoctvteeeddre1todpbpayayytthshaeegaranenenamulaelnffteeewe.i.tAAhceCaararoobccooouiuflldAdpcpasoretenniltaiealtllysybbeoeedexixpspcooossneetddinttuooeaaditdddipitatioronincaaillpccalltaaoiinmmssfofnorhrisssoomrmaeepnpagarertmtoeofnftthh,eepprrief - Cabot i July 11, Cabot is no ler sbi to meet s obligationins these mater. 1995 period covered by its agreement with Cabot if Aearo no longer able to meet its obligations in these matters. elects to discontinue its participation in this arrangement, or if DDeesrvicegllnooippfmmiceeannntttsscmmhaaanyygoeocscucurrnttthhheaatntccoouullddmfafbffefcuetttthhreecseaosttmimsfma,tte1oo)ffAiAcgenrafrooc''asnlstiaibchitlaistnige.se.sTThheeshseee ddaeevvveeelloroppammogeesnentttssfiinnrccellsuuoddle,v,ibnbuguttcaalrareeinmnsoo,t(iliim)tiestiedgdnittoof::icant cac(iph)pahesnligglaanetsiifeniincnaavtghnhteteoeclmlhoeegagssanal,glcec(oso1ss)itntssstioohgfedfnidnfeeuifcmeafnnbtdeiecrnhogtanfnhthfgeudeestssueeicirnectllcnahaliiaemgmims,e,sw((,aivv(i))id)ssiisggipgnnriniofficiifcceicaadannutntrteccchhahapaanpngnlgegiesiscinanintbthlhtthoeeeemtmhiaeivxxseaeracannlgddaeinncmaaostt,usutrr(eoeifoof)rfeccsillogaaliiivmfmisinsrcgraeecnccltaeiiicmvvhesade,n,g(d((ie1iv,is))) itrsnriiigaatlnhleiaafinnacddabnlt y caaoplclvpoaeectrlailatagoitoeennmoaauimmtscooo,nnmg(textshh),et(cvchoio-)-dosdeuiefgtfenceniondfmdiaceanaontntsfst,,pc((hevnaiindi)iig)nethgsheeiinnffmstihunareaannlcncaiciwaeallcavvoniivadaebbiprilrlaiiogttcyyeeoodftmfuimregeaemtamibpobpenelairrcsmaooobfnlfettghhtoeecPetPahratyeyaosioernrGcoGlrtahroioemurupmsp,ei(imnvnbcicilel)uurdsdsiiignnnoggiffeetixchxhaePnahutascyathiooaurnnoGgosrfefsotaauivvnipiatlaihloanaebbdnlllieetahbeiilrity Srrceehossavppreeeercocattgfiivevbeeliiiminnsistutusrr,eei(rrissx,,n)aastnnchddcel/uooorrruat((tcxe)o).TmaahdedeeeotCrfeoiprmmnepnaindatainintyiogocnnianttsnhaunatrotattnhhdceeeetiicneiorteevmrreipprnrraeegatetattilihoiotnniigmooapfttfaiotchhnteoaccfmootnnothtnrrsgaaecccttpueuoaratltlaeoinonbtbliloaiitlgghaadettriieoomvnnesselmooonnbpewwmrhsheiionccfothhtnshAAecetasParrcaooyaohhrraaessGneeresotstuitmmpiamaaeatnetdddetiihotssefir caAshmeaaoarurernosot'sfosslfihhtaaabrreieeliosotfyfiilasiaibinialb ilctcyuffrfooaori rttethe.hxeeTissshseeteieenCxxgioiassmttniinpndgagunaayunnddcrfafunutnctuuorrlteedcscelltaaeciirmmmossiu.nIleIbffedtaahnnesyyioigmonfifptftahihcceetanoddteeflvvytheelellaosorpepgmempreoetntnhettanssntdditaeehlsscdcrrreeiivbsbeeeelddrovpaaembbdooaevvnmeetosuwwoneenrtree,itts0ocooucrrceucnr,tttehhscetiamaccat,ttuueaallof amount of these liabilities for existing and future claims could be significantly larger than the reserved amount. reBBspeeocnacusisaebouiolfsftttyhheeefoiirnfnheeurreentt ddciliffaffiiicmcusualltymyoiinnnppgrtorhjeeoPctajinyegotrthchGeertonnuiuumpmbn,ebrgaoefrndocfhlcealasiiemvmesrttahhlaaptohbsaasvveiebnlneoodteyyevetltabbpeemeeennnaatssssseerhrtaettd,m, atthyeeoccoocmmprplleehxxaiitttcyyooouffalladllloaoccacattitinnggh.e responsibility for future claims among the Payor Group, and the several possible developments that may occur that could affect the ehe rsesrtvofetiAChcamroo'asmibtilpihieacsasshuenbCboymepdanycan notestimate heamountor rangeof mountsby which Acaro's Tailmayexceed estimate ofAearo's liabilities, the Company can not estimate the amount or range of amounts by which Aearo's liability may exceed the reserve the Company has established. EEnvnirovnmientoal MMnatatmiterrssenannddLLtiigtiaagtaitoilonn "dTThheieCCosmompcapnhatynoa'yx'ssroospugpbesreeaitairnoscnaes,suta,rraeinssdouubbtnjjhecsctht tooaeennnvviidarronondlnmmdeiiensntptnaaollsgallalwossfsaaonnlddidrreaegnugdluhatalizooannrsdinoncuclsduwidainnsggtetthsheoonssfeeoppreecrertaatbianliiennbgiyntognasatiiironecamrli,isssssaiootnnes,s,,awwndaaslstoectwaleaterr aGdauiiustrtchchoouarrrimtgeiseestssa,arntroocoxueuin,cndbdssutthihbeesswtwaoonrorclrtedlhds,e,, anarnnedddmpetprhdriieiavvhtaaaittenopndpaloairfnrtigcieoasnnitidnnamdthihienseaptUUoinsnoiatinlte,eoddfSorsStotaealittsdestsaonananddtdhaoaabnbzrrafooraoadddor..uTcTshohewmespaseesetnelwsasawsetnsiafoanonndrdcfeorrraeebgdgluaeilmabaotyigonennssastpifporornoonavvlaii,ddrse,t],autuneend,sdeaoenrurdcrceclerosrtct,aaaiilinnnd ficfonoicrrcoppuememrprslssoyotnainannalcgleiiwsnn,ijjuaturrhbyyataashinnesddsfepporrlrooatppwheeserarttrnyeydmddaaermmdegaiaauggltieaeotcnicloloaansiifm,mcsosd..nefTTtaehhmneediiCCnnaoogtmmiopppenara,nsnfoyyonrahhrlaaesssntiionnrccajutuarirorneenudddo,,pfaarrnnooddrpecwwyroitilmllyl ptcdeoainnmsntaainutgiuoeeecnltfoaoiriimnndsccau,urmar,, adocgosmessststeaoannndldactacuiparipatilyttarasleblisueeosxxuinpprenecnenegdssdis,ittauunrrdeess oeionpnpevecriroaramtotiinpoomlnnyessnintiingnalHlwiiglgiahhthtwt sootfhfatenistsdsecrelnaengiwvurislroaoatnnnimmodneersne,ngattaulhlleareteCsisopoponmonspns, asidibnebiyfileliinhtieadessisn..egsIIntnpaefibtrslssieosenhfffeaoodl,rtitnatojonusdrsuyapitaissnefdyptirrtssopceioenvrvtiuoiyrrpododnandatmmmeeseina,ntgptaeoaclllcierlcaeasiispempsolosrnn,essallbinabitdililyimnitigcoessodiaafenynnddivnicogroroimtpnsmplbelyuynstwwianilitethhss Sandardsofperformanfcoe is operations worldwide environmental laws and regulations, the Company has standards of performance for its operations worldwide. established, and periodically updates, policies relating to environmental UAUcnntdde1err9ccee8rrt0taaiinnaneednnvvsiiirrmoionlnammreensntataatll llaavwws,s,, ictnhlceuluCddoiimnngpgathhneeyUUminatiytebeddeSSfttaoatteoesslCCoaomnmprpesrheevehenernsaislilvvyeeHEEabnnlvveii,rrootnynpmmiecenantltalayllRwReiestsphpoohnnsesere,,CcCooommmppeapnneisneassta,itfiooonrntaahnneddcLLosiitassbbiiloilftyy remediation Act of 1980 remediation of environmental contamination at curent or forme acl andaoffi locations. Th Company has identified and similar state laws, the Company may be jointly and severally liable, typically with other companies, for the costs of environmental contamination at current or former facilities and at off-site locations. The Company has identified of Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ssn 95/114 7175588..00008955 zane Migsohcivesadg Gat OTIOOIOSEHIAOI O20T80A_HSOk hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm merous locations, most ofwhicha in the United Stic,whichi may hvesome ibily. Pleaserefer othe paragraph eiled numerous locations, most of which are in the United States, at which it may have some liability. Please refer to the paragraph entitled "EnvirLioshinlimes aennsturaanlce Receivables" hallowsfionformation on the amount ofth reserve. "EnvironmentalLiabilities and Insurance Receivables" that follows for information on the amount of the reserve. EnvironmentalMatiers Environmental Matters UAAsSs.pprrEeenvvviioioruusoslnlyymerrneetppaoelriteePddr,o,tttehhceetiCCoonoAmgpemanncpyyhhasa(sPbnbAeYeey)enn, vavooldluunnnttaatrriiellyymcctooooippeoerrnaattaiinnlggwawigtiotehhfcnopnnoeggsoisoiiienbnlgserreeevvniiveiewrwossnbbmyyelnlotoacclaal,a,ssnttaahttee,,alnntaahttiieoonnfaall f((opprefrimvicaamrraitiolryutsisthlheye psUpuee.lSrrff.ulouEoaorntriveinaioratorteen"ddmPFcceOoonSmmt?app)loo.PuurnAonddtsessc(t(i"eoP`nsFPAlCFgsf"eC)n,iscinynccp(llEhuuaPddsAiienn)-gg)op,upratefnrdldfeluuicrnoiotrseooorconntcaaittainnMonynyalallycca2oogmm0epnp0oco,uiuentnshddeossCf((poppoeemsrrsffpliubaarlreoonooeccnyottvalanironoooninicgmeaacrecimndiadtoanolruraf"nPcPdFtFhOrOeeAaAs"lt"paheaednffdlfpeopceretfsrofooolurfcovoiranoaroyicoc]autansnse sulfonate or "PFOS"). As a result of its phase-out decision in May 2000, the Company no longer manufactures perfluorooctanyl cpormocpeasns.nds, nd through changes 1smanufacturingproses a the endof2008, no longerusessuch compounds ntsmanufacturing. compounds, and through changes to its manufacturing process at the end of2008, no longer uses such compounds in its manufacturing process. aRRceetgigvpuiltlaaioetosrryiynacaclctutiidvvigitaiteteshseccrooinnnccgeeormnfiiennxggpPPosFFuOOrAAe aaannndddl/uoosrr PPiFFnOOfoSSrmccaootnnittoinin,nuueriiisnknEEauurrsooppseeaaennddsaeehlnsssdeewwmchoheneersreie,dn,eaarnnatdtdib,obeneffooorfreercecegerutrlataianitnoriinynatteperpnnrtaoitaioocnhnaealsl.bbooddiieess,. TThheessee activities include gathering of exposure and use information, risk assessment, and consideration of regulatory approaches. `nIwnaaltasteet22e000r088traaennaddtcmaeeranrlltyys22l00u00d99g,e,wtthaeesEEpPPAApliimmeppfllreeommmeennttleeoddctaeestsWinagtsotofwifpaprerinirvvaagttreeewawteelmllelssntaalnddansootiihlssaaatrcceeecrrettiaaviinendaawggrariiccsuulttltuureraalrl ssfiitoecsmiinnnAAulmlaaebbraaommuasaiwwnhdhueesrrteerial Sours In wastewater his sme treatmentmere, th EPA sludge was applied farloomsauloecdaplrwovaissteiwonaatlehretarelatthmaednvtispolarnyt that received wastewater from numerous industrial sources. In this same timeframe, the EPA also issued provisional health advisory 0104 TTableiooffCClooennteesnt:s vavaarlluresosftfcootrdidrvireinnkokifningdgwwartaeterirwffaoontrPePrFFksOOuAApiopoifcfn0s0..f44pogparraarttse s ppeerbbit lillolifioocnno(m n(s"`puppmpbbe t")iaoannnddaPPndFFiOOSSwooofrfk00i..n22pgppwpbib.t.ThThheeeaEElPPiAAcnucrsurrterne,tnltilyynbcbleeulldiiienvegess3tMhth,aatt0tthhecesosenltleevivenellss: ehtaseretseitiplnnerggvopetplresricivtovifavaPtteeeFowwOfledAlrllsianiinkndinthhgPeeRwaaOarrSetaeaa,rr. sEEuPPwpAAep'l'lsslieppbsasefstotlrteoeastttlihinfneegtpoiromfofpvepiuuosbiblfolicnicocadnldshrurienmklpiitntigoanvndwavaaiktnsteeodrrisiissueupswnpppol3ilrgiMekesiasnniginndwLLoiaattwwhherrrleeonncccaceleoiaannndmddusMMtproyora,rargginaacncnnClouoCmiduopinunltengietei3iessMns n,itnthoddeisccuaoatrnevtiethnhyuaaetof pptphrrreoeopspleeeernvrttteiileaesssnodnnefewaPairlrFlttOhhceAeossniaitttneeidssnwPwuhFtheeoOerrmSeeownawriseattsowetrveewafllotarbetaeernrloottrtrweehaaetthtrmmeqeuepnanrrttotlsvelriuusdhigogoenesawewlahafsesaawalptpphwpleilailededsvdihstoooartddieeesstthe.eror3mwmMieinndaeenlifdf aaoennthyyvefoffururcePrtothFhmeOlerprSpaprsnoririivevasaPtteaFerOeddAricaionnmkibinpneglgedtwwieanattgteeectrrthiwweoeesnlulllrsslveaaevrryeee.los f utpbhurteetsbpbeerenollttoooawwcnodttlhhweesigEEllrPPcAcAo'd'snsttppionrrwoouivveititsshoiitoohmnneaaollEnPhhiAteao.arllItftfhonraayddavnvpioirsstioohvrreyyartqlleeeuvvwaeeerllltsse.l.rsnItnahaoltasteefeof22ue00wn11d00tw,,ofefeololuxsurcrtehnneadeetwwsthhwwoeeewElllPelsdAww'lseeevrpreerlodisvdieoesnfnitPoiinfFiaOeldSwewhsohikrictPchhhFaOdwwviAilillslabobbereoyevteslesettvdeeeeddlatseca,ccct3coiooMrnrddsilinennvdgg(etlt0hsoe othercompanies will provide aiemative wae suppl. the protocol agreed to with the EPA. If any private wells other companies will provide alternative water supplies. are found to exceed the EPA's provisional health advisory levels, 3M and the AAEnssvppirrreeovvniimooeuunsstllayylrreMeppaoonrratteegdde,,mttehhnetCCo(omAmpDpaEannMyy)enettnoetaerdreedddreinnstttoohaavpvoroleluusnnetnaacrreyyorrfeemmPeeddiiaFalil satCctthioonnsaaggrrseeileeommtehenenttCwwoimittphhattnhyhe'AAsllmaaabbnaaummfaaacDDtueerppianargtrmfmeanectoniotlff in Decatur A`AESnllauvbbimraooamnu.amn.deFFinoiotnrrasgslapMpDpperarcnooasaxtgiirmemfmaaattceeilnllyytit(ttyAwwpeDeunnrEttsyyMuayy)neettaoras1a,0rdtadhhserepeesCCrsomotmimhtpepaspanrneyysueiinnnbcccoyoererApopDoofrrPEaadFttMeeC.ddswwAianasfstthtreeewwasaotrteieelrrvoritnrceeawtahttfemmetCenhnotetmpapvlplaaaainnnlttyassb'slehumddoggpaeetniuccofoanoncsnttautirniiniangndgfrPPaecFEsiCClissthyieipninrffeiDieseleleddcnssactuer, aoosufrfrPPrsFoFCouCsnnsdiiitnnnhgethhmieetasssnDoiuliel,f,caaAAtcuDDtrEEufMaMrcsiiaaltnigteggyrerpweeiudtrhhtshguaaratonttuhthneteodppwarraeeptffeeeerrrmrrmeeiiddtgrirrsaeestmmuieeeodddniiabatcytiiooAonnnrDoooElppstMtiiaoo.nnnAdiifsetesst0ortamuuessreenevtai.emmwIuulmlotlifplytahlyeeeerracmvcaaaeppilanaovbavoeleerftrtoothaphetnteioffonoopsrrtmmtioeeorrandsscldlourundedtgsgiseentuiihnenedccoporrrpeposoreranattciieoonn {roughout 2010 and i expecteod be completed areas on the manufacturing site with groundwater throughout 2010 and is expected to be completed in 2014. migration in 2014. controls and treatment. Implementation of that option continued "TThheceClCoosomempdpaMananyyyc2ca0ot0ni7tinnSiuteelsstetoomewwnootrrkkAwgwiritethhemttheheentMMaininednCsesooonttsaePnPtooOlllruuidtioeonrn CCoooanndttrdroorlleAAstggheeennccpyrye((sMPenPCcCeAAo))fpppuuerrfssuuuaaannittvtaootttehhdeectteoermmmsspoooffthsheefpnprrteehvveiioosouuisslllyy4nd crdgirsoicoulntodsnaeywdtadMtCeoraatayatatf2gfo0eor0rGmm7reeoSrrveeddtit,ilsseppMmooisnesananlelt sisAoitttgeearsse.ieUinnmnW WdeaenastshahinhinnidggstCtaooognnnrCCseeoeonumunetntnOtytyr,,,dMtMeirhintnConnoeaemsdsopodtatraaensy((sOO'stashkkpeddrapialnrleceisnapeanndldceoWWbooloofiopgdadebtbriifuorlrnuyyso))riiannnncdadlteadt ttchh(o1ee)mCCvopoamohmupanaptdnaisynny'ign'ssrthmemleaeanasnusouefifsliaacconutfudrriinngg pipfeaercrdiifloliutrnyooranoitanCtafentoedtydtycacgcooiexmmcGpcnpoorooudugvenneddd, esMfvfirrenoonmomefsttohahteeaHss.eelUsstnitthdesesaBraantnhsddiespdprarVooglprpoeuoesesmii(nne"ggnrHtreB,estsVhpp"eoo)nnCssooeermaaHccpettaiaionlonynts'ss;Rp((iiriisi))nkppcLrriipoomavviliidtdoiib(nnlg`gigHtrarRetiLaoat)nmsietinn,tcomlotrurhdseaeeilatc(eimmr)nanetaovittiauvvleeuodnafrdttirianninkgckihrinrengvlgeiwawcasatealesteriornfuuppoonn cididrneionknkitmiinfngypgiwnwaagatsanteensryddeerxeetcestuerlmeetdiroenfdecmdolbienbvnytyeaelmthhodieenf aMMatiHiinnonenaenelstsfohorttBoaamaDDsheeepedpaaeVrrttaimmltueesenn;t(to"(oHfifB)HHVerea"ae)lltmthoertodHbibeeeasslsttahafnifRyeniffsooskrrpLpeoeiomoppoiltlufee(t"ttHoorhdRdrrriLinn"Pk)kF(ffiCoo.err.t,athlfhiefeieatsnimmesoe)iu)tfenfsotohronfanatyfycphpeneeromrtfuliucccooarnlrootinnrnosalteeeddd btbcyhoyemaacMcpttPoiiouoCnnnAssdsttoioassrreeeammdreeefddsouiiarlittmceaolPPfdFcFeoOOcniAAtsaimaaonnniddnsaPPatdFiooORpntSfi;OrnoaagmnnSrdd(eth(m;vieve)s)desishshsaiartearisinpn;gtg(oiiiinnin)sffoorferrommmrateathdtiieiofoannotirnwwmgiiettahrnthdyhieessopMMousFrPacClCe AAsoisftabeobsotohwiuenttrWppPaeesFrfhCflilusnogoartrtoootnnnhaaeCtseoeedduscnciottoemmysptpoMhoiuaunntnndiedssssn..oDotDutsruci(roinOnngstgrk2o2d0l0l0le08ed8,, a`tahmnneaddnMWWufPoohCocoAdtrdbiuiysnrsygu))eu. dIIinnftoAAr.umuggauDulsustdrtei22cn00ig0s0it99oh,,nettsshhpeaerdMMionpPPgtCCiannAAgdriisesssmsuueuededmiaaalffomooofprrm2tmei0aoal1nlr0sdde,efcoci3sriisMtoihonbeneafagdodaoronpmptieitrinnmdggripserpemlomesdeeaidl maisalilteeotosphnpteitinirtooeWnnmissefadnfsoiohargitnlthgheoteoCpCnootmCmpioaapuonnatyntnty'yhs'sMsCCCiontoanitetgaasggoeeetaGGGr(rOrooovavvkeeedaalned `amWWmoaooonondudgbfbautucrhrtyouyssrseitnitrsges.f.ea33cMiclictycoo.ommDmmumerenimbnnycgcteeethddhetentChhsoepdrmrreiepnmemaegndedaiydna.idlalRsooueppmtmtieimoodnneiraaaoittofthhn2eew0O1oOk0ra,kkc3dMwailelbssecigtoteanntiiininmlnuaepetselet22m00le1l0n0.dt.iArnA=get teahiaeccchhrsellimoocnceaadt2iti0iao1onl1ntothpheteiorrenemsmeadetditaihalel optionswere Cottage Grove options were and among those recommended by the Company. Remediation work will continue at all three sites in 2011. "TTkhheeeCnCoroemgmpaparadnniyyncgcsaanunncnohotctpporrmeedpdioiccuttnwwdhhsaaottaradtddhdieitctoioonnnasalelrqreuegegunulclaaettsooorryfyaacantcytiiooannsscaharriaissciitnnoggrfsrroomm tthheefofroeregogioninggpprrocoeecdiengsenadnddiaaccnttivigivtieesss,ifiaf nanyy,,mmaayybbee taken regarding such compounds or the consequences of any such actions. Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm son 96/114 7175588..00009966 zane Migsohcivesadg GotOTICOIOUSEHIAIO2O08T0_AHOSk om 1/1VII3n/2MiM0a1aro8rcchhlo22fa0011t00th,,ettWihhieesoWW cioninsssccsioonnmsiAinnirDDMeehapptntaaparrstg:mm/e/ewemnwnetwtno.otsfefrJcJeu.uggsustoltiviacc/tAeeironcmnhoossitavifeftiiseet/eddhdethgCheaeorm/CCdpaooatmman/p6pya6a'7nns4yy0m/tt0ha0han0at1ui1tftf0ui4sc6ss5uce9ike1nik1gn0ing0fg7c8$$i4225l7/7ta00y1,,10i0-n02000P06iii0nrn_i1ppe1e0nedka.anhlttiCmaehsefonor,rlaWllilgsecgeoenddsippnaa.ssttIn violations of the Wisconsin Air Management regulations at the Company's manufacturing facility in Prairie du Chien, Wisconsin. In aJuglnyci20n1g0,to hieCmompplawanoenyednmvtihereoSntmanteenttoafWlipsrcoojencstisnarmesacnhuefdacstueritnegmioelfnytht.e mateby th Compaypinga1n50,y000 penalty and July 2010, the Company and the State ofWisconsin reached a settlement ofthe matter by the Company paying a $150,000 penalty and agreeing to implement two environmental projects at its manufacturing facility. r---- Environmental Litigation ARAsispbprraeevsvii,oouuissnllvyyroelrepvpoinorgtrtepeded,r,faalfufoocrrrmmoeoercreaenmmyplpllcoohyyeemeeiffisillteed,dsaaepepukurirpnpogorurtnteesddtcacltlaaesssdsdaacatcmitaioognnellsaawlwesugniitininng22h00a00t22ithninethtpheleaCiiCnrticricufufiitutCfCoeuorruetrtdofoffeMMraroriggnaacnrnCeCaosuoenudtnrytiy,s,k, smAsuualbbanccblflaiuinmnciicacha,arlliinijnnvugjourlfrviiuiescns,ig,tanyp.neddrTfpplhrureoooCprpieoerrorcttcuyytdiadtanaymCmloaucagrhgteeemiffnrioos2tmmr0y0,ee5xxspepgeoorksasuniunrtrgeeeduttohnsppeteearCrtffeolldumuopdaararonmooyoca'ttgsaaennsmyylallocclehghetimnteogiismdtthriyoiasatmatsittnhosotersrntprnhlaeaeyairnrattrtihhfmfeesdCCsouopmfmflpepaaraenindyny'f'esssaDrDp,eeeicrcnsaacottrnuuearra,lsAAeidlnlajbrbuiasarnkmy,sa,, rcelmrpllelaialaaasnittnsnueeotfdiifaffcccr"slte'auisiccrimioondnuuesgnnnoostfsnensaelcalttihnfhfliieedltlpyeebbr.ddaaoTssaapihsnnesaerattmthhCmyeaaitetnrncossduwduceniecthdedhCrccclsooolimauimnpirmttlpnhaislnaeiaain2nrvet0eti0ciibbin5nanaNiNrrgtroeryeovaddovneefbbtmmetyybdhbtteethhehDreeree2e2xec0C0cxa0l0octu66lmusu,irspllvpiiaivmilnmitaityiyyttt'pisi.nprnmgrogAovtotlvihothiseis,oiicconoiaannntsssoseeo20odftto0fist5tppmhh,rrteeoiospesspsteaeatrtjhrttue'eyydd'ssgndaeWaaWmmmoiaorneargkgdkeeeesprcreslcslalcaCCiaoniomomntmimsdfpspfep'ooesnennpsnpbobaseartaertsihiiolooaennnldafcoAAlolcfifcatntsa.j.suppTTaruuhychrrt-eeppiooorrntteedd daclalawawmsisasugtoietft((rfoeilslteihddeeebibndryytptsrhthoarpnreeedeertprryreoesfpirdesoertmniytscodooiwfefsnMMeoinrrosogtrnigansanontfhpCeCoeovuruinclntiutnyyoi,,toyAAcloltaafabbtnaahmymealaD,,cseseocecmaektpikunoirngupgnuladunnsnsts.ftaaArttoelsmddoct,choieonmC2mpo0em0pn5pse,aattnohnyreyssjuaaDadnnedgdctpeaputinouuninrtria,tiisAvvyeelecaoddbnaaadmmmaapa,gugeremspsaonnirnuvtvfeoiodhclivctnliuagnrsgisanaalglclleteigogenedd hdfoacalcmidiltpaityegynetdththioaantttghffeootirrhrmempererrrollpyyeemmrtasyannufurofofcoamftcltucuerlmruaeesiddsscstttihehooionissfseeioaccoftoopimmoenpprnofouluusnnoddsrsos)s)ocggtrraaannhtyteeel ddcfotthmhseepCaCcootuominmopdnapsdnafynre'oym'sssmmctohtoeritiCoioanonbtbomtovodpeasanbfhyaltte'esedDttnhheeectcachaatussesre,,,aAefmfeelfacecbtcoaitumivvrteae,liymnppu2au0tnt0iut2infn.aggDcetttushhrepeicinactgaessteehoeonn pshstoaallyyd, ipppellanniadniittninfgfshsthffiellmeerddeesamaonnblauaemtmireoennondofdefeadpdculaccrsoopsmmopcrpletlaraeitiidnnftitscssaaetsiieo.knniNngigosdsfduauaemrmsathiganegeretsahsfceotforifiroransaltilllaneectggtheeieoddnppadeesrersssoocnnriaabellxeinpdneujacubtrroieesvdseaanflndieldespdprroiaonpnpetdrehtreutyysndadlamammehaeacggsoeeuaoroytnninbbie2eeh00ahd2lfa..oDlfethhfsepeinnteaamtmheeedd plaintiffs and the members of a purported class. No further action in the case is expected unless and until the stay is lifted. 10s 105 `TTiabblleeooffCCoomnteensts: CIIonnuFFneetbbyrruusaarkryyi22n00009c9,o,amaprreeensssiiddaeetnnottrooyffdFFarrmaaannkgkleliisnnaCCnooduunintntyjy,u,nAAcltliaavbbeaammcaia,,fffbiillaeesddepaduporunprpotorhrtpteelddiclclaaastsssisaoccnitoiobnnytllhaawwesDsueuicitat tiinutrthhweeasCitriecrcuwuiatitteCCrrouaoritomofuefFnFrtarranpnklkltalininntof `"wCTwhoaaesuntsneatwtymaeseteerderktdrireneefgsaettcmmnoedemnantnpttesslnihusnddatggthoeeecryttaoosdffaamuirmnamcglnalenusdddaesan3nndddMi,nggjrruDaanysscsnsltolaivonnedndssrLeiiLlniCett,fhhbeeDassisttekadtieenottnhAaamtttheeasrlailepecgp,eldigIclnayctic,coooSnnnytbtaamyiianntghPPreFFoDOO-AWeAc,W,aTPtP,uFFIrOOnwSS.asaaStnneyddwntoaathtgeherreortrppSeeeoarrutfmftllhue,uonrrLtoopLcclhChaeneamtnnioidccfallss. hTBBaihivoceeolonghgaiaimccdaaelPldFPPdOreorAfce,eonsPdscaoRnrOestsSooasfifnnAsAmtdhemoetreibrcrcaiecassae.p.riTTnfhchlleueuodnnreaaommc3ehMeedd,mppiDllcaayainnnletstiofrnfsesLlceeLkeaksCsse,dftDoorrareiekdppeirrnpeeosAsseeimnnttteedaaroicclnalaa,tssIshsneocofi.f,plaSrlloylppnpeeaerrgrtsroyoon.n-sWsIwnwiWMtiatThhri,icnnIhnttchh2.e,0S1SSt0yta,antttaehgoeorfAoflAASallobausbatabhmm,aaLa,S,LuIICnpnc.ra.enwwmdhehoo mCahCoatuovreuetrstho,oarrdtddhePeerrFeeOMddoAttrhg,heaPnccFaaCOssoeeSuttnaratnnaydsfonetrrhrseuerdtpfferrCrofoomlmuuroFFtrrroaaacnnhhkakeltlimienndicCCaioolssuunrcnetaylstetetyao,osaeMMdtooirorngrgagdanneipCCtoooosuuintbnetotdyyl..odInIpnnethnMMdeaaiiyryn,p,gtr22oh00p1e1e00pr,,teycc.noonIinnsnsiiMsgsttetaehnrnetcthrwwei2sit0tohh1liu0itts,sitohhhnaeonfAdrtlliaenbgoalmlofafatsthihsSeeuoporgetehmrere Cerificuon sue nthe rstcasefled tere. matters, the Morgan County Circuit Court abated certification issues in the first case filed there. this case, putting it on hold pending the pending the resolution of the class CIInnomJJuupllayyn22y00,009S9,o, lthhuees,EEmmnecer.raalladdnCCdooaFasirstet UsRtaiilmitisIenstAAemuuattthhiooornriiattlyy,iiinncFF.lloonrrtiiddhaaelfiEelseddcaambllaiwasaCuoituanagwtgayaiCninissstrtcttuhhiueetCCoCoiomumprapttnaanylye,,gEin.I1.g.cDDounuPtPoaomnnittnddaeetNiNoeenmmoofouuprurssblsainncdd i`Cdrnoimknmkipoinnagngnyww,aiaSottofeetrlraulwwtolieaeel,lgrllIessndicffr.Po,onFmamOngAdPPFFFOaiOrnAeAdRaPaannFmddOPSPIcFnEotOGenrSStnaaaamtnniidodnnassateelei,ekoIkinnncifg.ntiitgnoostrrheweceoeElvsse.ccracTcmohosoebsttissaCrvrCeeloolaeauttneemdtryttoCpiiiirnnncvvaueeeisdstttsbCiigygoaatut,thiiroeotnnoa,,llctreraegraitntemdgerecfsnoe,tnn,dtrraaeemnmmtie,enddariitaeisotmtinooonnvoefaadpnnuddtbeliclawsuit. t1mtotrohtnheeietUmoU.raSi.n.Sng.hDdoDeifsicstaatrlrlisiececgttteoCCdosoPtuuaFtrtOteffcAooorruattnrhhdee,NfPNioFnordOrtithShneegcrmohnDanDttiailmsstriniccaittoiooffnFFnolloofirriinit'ddsdaaw.e.OeOolnlnfsNt.NohTovhvaeeelmmCybobeFmerlr1opr19ai9n,d,y2a2,00jod00ei99nfteethhdneedbaDyinsitttshrtFeriiiccrotettChCRoeouarurmdrtetIfddeneentnndiriaeetnddittstoh,henerpaepm,llaaoIivnncett,dif'wfts'hasmesmoltaoiwtoisonunit FAtforpuaruruidedlmuul2aleennnd.9t.thTTe,hheecat0DisheseisCt1ttooriimcsc0ttpCaCtaoeo,uncuryorttusssrntuu,dbfstbmehqedsouincecgnqtrtlhyuadddteepeenlneaieifldndtsyeiafsnf'nnosaotjrotdgitiunimaedmdeeemrnloyotthtfihtoeehnseppsloalfninolyntsiFfu'flm'osmrmmaidocoatytiidooeJnnfufedofnogrdmraelenneatat,v,vFeesietrooecfiRflinlaeegmadannIainamtmeesrennnadmdteieooiddnfcactsoloh,emmIanpcpcalll.as,iiewn.toa.nsOOvnnarious TegalApril legal grounds. On September 29, 2010, the Company grounds. On September 29,2010,theCourt granted these motandidisomissned the lawsuit. Th and the other defendants argued motions for summary judgrnent, seeking 29, 2010, the Court granted these motions and dismissed the lawsuit. The paintToped dismissal of th plaintiff opted note ca not fose to appeal. on various appeal. tIInonwJJauurnndees22t00h0e099o,,stththeeoCfCocomlmpeapanannyy,i,unaapglloonnggw1w7i.imthhilmme osrotetithchrahanno2fe25t5h00etoPthahesesrracciocommRpapniaineiviessn,,eNwwearawss ssJeeerrrvsveeeydd.wwAititfhhartactoihmidrmde-nppcaarirttnyygccooammnpplfalaoiirnntctsescemkeeiknnigntgcaoccnottnritiroibbnuutti1ioo99nn0, chttholeeweaSaSnrttudaapstteatonhofedf NrNceoeemswwtoovJJafeerlrcsslceeeoyyasntffiislnlaeegddnudsspuuitiatthg1aeg7ara-imdinnaistlmteaMMsgtaearesxutucasshsEEoonncfeeatrrhtggeeyy,dP, TaTwisiiseetarhrircatShRSoeoilvpuluretetriisooiennnnssNc,,eOeOcwofccdciJiidedoeresxnentiytana.lalACCnfhhteeoemrtmihccieocarmallhmaaanenzdnadcrttidwnoogousaotnhtshebeesnrtfccoaoonrmcmcepepmsaareninneietstsahcesseteisecoekkndiiinnimngge1n9t9o0f, httchhleeeeaPPcnalasuesspasaaniaiucncp.d.TrTrheehmemeeottdhviyianrcldku-cppmoaaesrrttnstyylayccnoodpmmropoptplhloaaesirinendtdassmeeeeakkgbssyethtsoeoaEsssPppsAror,eecaaitdadthehthdoooswsaeeitcchcoostoshtttess paasmrtmesosoennnegcttehoheoeufltihddriicrokdax-plipanlaryratteynydxdedcofeetefheenenddrdaShan1natzstbsa,i,rldiinnooccu.llsuTuddshiiunenbggtCsthotahemneCpcCoeasmonmpiyna'ptnsahnyery.es.ceBeBdnaaitmsseeeddntoonnof JeitihnrnevsvooecllylveveaeWmnmhueeenptnthtreeinrmt,tehhaedenyccdaca1sus0eerwraeahpnpaptptleeyxaarpressront0po,orrseetellhadaetCteboytotomsthpiteaspnEpayPasAsmtt,addtiihyssepbpootesosartalaelolqofcufoiiisnrntdesduusattstortiricsiaoaslnultevwraicasbostutueeldaat1tet0tawwshiooleycccoeoomxmsmcemsereetcdriic$sai1asllubwweilaalsnisotttneeh.ddeTiicsshappesooesCsaarollemffiapcinailnsilytit'eesosrisbeinneceNNneetww dcJdeeetlrteseenerymvm.isinWneeidhds.e.TatThlhleheore,cCaCaobnolmdemptspaohanawnryeyhd,aidoftoeeesxnsytennnottity,sytekhetet hehCaaovvytmeo pabbabeanaysasiifmsafafcooytribsoeetnsotmriefmaqtaunitiiernneggdpittetossrpcpoooctntaeotetrnfiitntbaiaueltltexetxptoopolosthusecurorscsetoisisnn.tstthhaiitssciscasausseee,inaltthhhoeouucggahhsethhreeeCmCoaomimnpspataonnybycecuurrrelntlyy believes its allocable share, if any, is likely to be a fraction of one percent of the total costs. OrOnensDoDuereccceeesmmbobefetrrh33e00S,,a22t0011o00,f, ttihhenenSSettaasttoeeaoo,ffMMfilnienndneseoslotastwa,s,bubyiytiiistnsHAAettnttnooerrnnpeeiyynGGeCnoeeunrneartalyl DLLioostrrriiSSctwwCaaonunsrsotn,a,agacacittniinsngt i3nniMtitsstoccraaeppcaaoccivitetyyrdaaasmtrrauugsseteese(ooiffnttchhleeundnaitanutgurraall specifiedsssccosstssadmreeasnonatbleatomey' es) for alleged nr to,destruction,an loss of seofceri of he resources ofthe State of Mirmesota, filed a lawsuit in Hennepin County District Court against 3M to recover damages (including unspecified assessment costs and reasonable attorney's fees) for alleged injury to, destruction of, and loss of use of certain of the Pigs eihciesodgr Go ADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ama 97/114 7175588..00008977 zane 1/13/2018 MigsohcivesadgGotOTIOOIOSEHAI11O-220O086T00__A1H1OS0kk.hhtomm (SStMtaatEteeR''ssLnnAaa)ttuunrraadll rrteehsseoouuMrirccneensseusunondtdeaerWrsaestveheevtrretparsPal:l/o/wMMliwiniwnn.onseeesscooC.tgotsaonSvtSt/rAatoatrlctuuhAtitveecessts((/(eiindnMcgcllauurW/dddiianPntgga/C6thh6eAe7us4MM0)wi/ei0nn)0lon0lce1sss1o0sot4tsa6a5EEt9nun1vov1iri0rry0oo7nnu8mm4e5esn/nattaeall RaReesdsppouonnnsdseeeraanncddoLLmiimaaobiinllitlyyaAAwccbttased a(cMqlaauiiaEmmtRisscLooAfff)ctvreaeasnsnppdadastshsss,ee,dMniumuieiinsnstanasnne.csceoeT,t,aahaeWnddSnaanteetegreglPlisioggsleelonnuscctieeeowknwisiCtthhdoenrceetlrssaopprloeacActtitcoottnot(sMthhueenWpdprePrreeCssMAeennE))ccR,eeaLoosfAfwPPteEFhlCalCt'a'ssMisintatitthhueetrgoegrrsyropouonunnunsdiidwsbwaalnteacetfeeroar,a, snsluudrrfufdaanaccdemeeawrwgaceaortsem,rh,mfefiSiosstnhhaoltoaerwmotbathhayersresdulolne ftaionqrhutchaeoetmicffpuuelttinufuserreeaaftfnioodorinsifennodjuurimrrieueesnrtttseoo. nnTtlahoutesursraoSaltlardrteeeesssaootluursrruoceceestsseieoffknrrosoomfdmerriceslhlaee,raaaqfstueioasantooisfsfcPuPneEFfdCCseersaMindnEttoaRtttLhheeeAreedtnnahvvmaiitaroo3gnnMemmsei.ensOntrt,ne,snJapnadondnuuusainnrbddyleeerr1f4MoM,rWW2a0PllP1C,dCatAAmettahChgaaetttsy33tMhMeofiiLSssatreaektseseppEmonlnasmsybiobsl.lueeffer inrfitnoeetraesrcrovvoneemannbpeeleddeniiasnnatttthihooeenmSSfttosaartteeffouocftufsMrMiefnoilrnormaesseslsoogotrteaadellasacwtwrosusnuuctitiatitmoaainnnnddoastfsefieioesenkhksos,faddcqaaiummtayaaptgigrceoeslspiefinernetaeynx,xdcweoesctlshoseo,frefdg$$a5s5m0r0,a0s0g0oe00s.aauOnnddnnoaonJetadhdnreurawlelreegygaara1lcl4ota,nnn2dtd0eae1ieq1nqr,ieutdaihtbaentblheCleeitrryeewlleoiieleffflL,,saiiwnknicectlluhEuddlmiPinnoCgg s ander several theories, includingcommonlwandstory reasonable attorneys' fees, for alleged contamination of city under several theories, including common law and statutory musance, property, nuisance, sit wells, strict abil, respass, groundwater and liability, trespass, negligence,andconversion. water contained in the wells negligence, and conversion. with PFCs `CTThhoeerCCmooamnmpbapnyehahaasnlsntnhyooaittrreaeecbcoiolrrvdidteeyddeiaasnysnyotliiaspbbrioilbiltaiiebssleffooxrrdtthheectCCioommmappabanlnysy't'ssieennvviiirrnoon.nmmBeeencntataaullslleiitoiggfaatttihiooennlddieemssicctreriidbbaeecddtiiivnnittthyiisns tssheeccettsiieoonncabbseeecc,aauutssheeethCheeompany nhCisaoonmtottpsaaabnpolyetbebttnoeotleiiesleastlvtiiexmmsepaattohteesautaarlppi,aoobssiisfsliiabbtnyleyei,lsloosnssosHotoprerrryoraabnnatggboeelboeeofafnlsfodrssaes,cs,ttwiiimotintahhobfttlhheoeeneaxet cxthpecipesetpittriiomoncneo.eoofBffnttethhhtceeeautPPsoaaesassoascfioetcshRtReis.ivlvimeeritlleiitdgigaaatcittioiovnn,it,ywwhihneertrheeettshheeecCCasooemmsp,patahnneyyCiionnmddiicpcaaattneeydd that its potential exposure, if any, is likely to be a fraction of one percent of the total costs. EnvirLoiahnilimeseannd sturaanlce Recehvables Environmental Liabilities and Insurance Receivables ApAsosonoffDaDenececeemmvbbeaerr 33u11o,,fs22c00t11u00,r,ottlheneyCCoaovmmaplplaaannbyiyehbfaacddtsrreewcciotorhddreeeddslapieacibtilliotisecsaocofhfS$i2n2d44ivmmiidillullaiiolonniftfooerracenssdttiimsmaastteerdde""ceeonnrvvdieirrdoonrnemmleaentntetadallienresmumerdeaidncsiaettoirocnne""icvocaosbstltssesbbaaossfeedd upon an evaluation of currently available facts with respect to each individual site and also recorded related insurance receivables of SesTtSimmaibllleo,ng.eTnheeraClolymopalntyrrtehconrdtshHe acobmiptlestfioon roefmediation coss on sn undiscountedbasi when theary probable snd resonsbly $15 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 106 106 `TTiabblleeooffCCoomnteensts: fdfeeeaapsseiibnbidilliiinttyygossttuutddhiieeesssioaer,tthhaeerCCbooammspepadanpnyry'i'ssmaccrooimmlymmiuittpmmoeennntnt toeoaaalpplloaanntohoiffraaccttiioaonrnt..yLLeniavibiirsliotniiemsefnfootrraelessstttiiummdaiaettsee,ddcaconosdsttsssootffenmenvtivrieroosnnmmestneontttahaell urreemmmbeeeddriia,attiioonn,, rcppduaearpriteiicrncidpdpianartgiteomoonenndlvetihveaeelllsaaaictnnetdi,oaffnriisenn.aaTbnnhaccseiieaCaldlovvpmiirabipmbialialinirttiyyylayoodfufjpuanosnytnysoiortntehtheceerorrnrppadlooetotderenlntthaitaiblrldlyiy-plrreaeesrstppayoonefnsunsirvibbtilhrleeoeprnpaimarnrteftenioesrtsam,,lahtsthtieeuoednexixtedtseee,nvnatetnolodoffptetshshoteirmcccooaitnnerttscaumaamsmisnittoanatntiahocteneaisnancounhdnmdantbtghheeeer.,antaTuthureree ooff required remedial actions. The Company adjusts recorded liabilities as further information develops or circumstances change. The Cyomepnan.yexpectstat t will ay theamount econdedoverthe periodsofremediation fortheapplicable cs,cuenly ranging wp Company expects that it will pay the amounts recorded over the periods of remediation for the applicable sites, currently ranging up 0to 20 years. AeAvssaolofufDaDteiecocneemomfbcbeeurrr3311l,, 22y00a11v00a,,ittahhbeelCCeoofmmiptpasann0yy hbiaamddprrleececoomrrdedeenhddetliiSabbeitliiltieseesonoftf$A$9g90r0emmeimillelliniootnnaffnoordr"C"ooontehseerrnetennOvvirirdrooennrmmweientnthtaatllhbeliaiPbilClitAiie,"s"btbahaseserededmupepdoionanlaaannction aaeangvgdrareelueLemaamtkeieeonntntEwlowimfitotchh,uAArMrDieDnnEEntMleMys,o,atvaaaann,iddlaattbsolweaedfloadlcrpetssrstearotsrciaemcenepdaclameemmoiuosenunntntthtsteshseooofifpSpleeeatrrtnflfledumogorerrniaonttuaAnetegdddrweccaeoomtmmeepprnootuautantnnhdeddCssoCiimnnopdndrasrineinnynkkt'iiOsnnmggrdawwenaruatftweeirictshstoorutuhirrecncegeMss fPiinCintAtlhe,eetCCshetitiyyrneoomDffeOecOdaaiaktakduldaraalcleteion `"AaATnlhldaaeCbbLaaoammmkaape,,aaEannlndmydCoeC,oxoMptteatiacnggtneesetGGshroarottoavmv,eeo,a,MssMitwnoiennflenltsehaossetospatpar,ee,nsaaednnniddcnegatwitntiwwltoohlefofooscrorcmmiulereraordnviddesirspgportooshausealnnldeswxiitttaefstseirivnnaWytWatehasaeshhsCii.nnogimtoopnnaCnCoyou'sunntmtyya,,nMMuifinanncnetuessroiotntaga ((fOaOcaaikkldidtaiaellseeaiannnDddWeWcoaootouddr,byu)ry.). The Company expects that most of the spending will occur over the next five years. eITetinifsodrdciifefmifceunfltttotooftessiptlimimcataeabttlhhteecncoveosistrtooonffmeeennntvvaiilrrooannmvmesenntartnaaellgccuoolmmpapltliiiaaonncnceesaatnnhdd rreeexmmteeenddtiioaatftieioonnnviggriiovvneenmnettnhhteauulnncccoeenrattaiaitmniitniceasstirreoegngaarandrdindtghietnhhecgexiininttseerreppnrreecottfaaettiioonn aanndd alLeatolne:tfer(orn)nracatcetiimhvvaeeecnncltgleeoaeainfnsnuaupptppmhlemeictieahntbhfolooderdsmes.an.tvDDiioernoevnevmvlaoepaenmbtallelneoltasmrwpmeasgaaymayrondecodiccnrgcnueurghrtutetlahaseattintovccnioosru,uoltnddhmaeeafnfefftexecatcteltntitthhmeoepCfaCoceotnmomvpfiapronahnnyemy'C'soesnmcctpuuaralrrncenonytnt'taasasosmspseeiesnrssaamtstiieoeonnnnt,s,aniindsnccntlldhuueddpiirennoxggdi,,usbctbuetunstt;cone(ot1ot)fllciimhmaiintteegddes ietinnonf:eeo(nnriv)vciiecrrhmooaennnnmmgteeennstctaiaonllrtrreheesegguuilanlanaftdtoiiporoomnnlssai,,ctciciohehnasan,nagigveneacssiillauinnbdilppeneegrrremmegifiassorssdtiiibbsnllgee0tlleherveveeecellossnvovoefirfrsnospanpetmecucireifafnilitccarlcceosiomommuppproaoccueutndnodadfsmstahiingneeddCsrroii:nnmikkiip)nnaggnnwyewa'wtsaetaoernprdsesrooarvutcoirocelnesvss,i,aonorngrwdccaphlhrayoniadgcuenacsitlsgin;ni(niid) changes rpreeoentmmfeeonedrtdciiieaaamtltilioeyonnnrteteteshcpcehohonnnrsiiiiqqebusuleseasp;n; dr((ivpvi)o)clssicuuniccecdsee,stsishsniciirnlndua.apdllaillnorcgcttayetiifinnfnogdrteilsimsatibbotiilrrlietsyyc.totoFvooeorrbtnhseaeetrupsportaoieltnenrctnelitsuaioaldullelrydycreirenedssbpapoomotnnhassgi-ibebclsln;eev(ippiriaaiorr)nttinmieeeesw;o;atanaandlnddr(e(1evm)v)etodthilhvaeitnffii'gmonnaaannncacailiayablltiivvcialialba"ainlbidtayinodolff"iootttthhheeyrrr empennovvateiinrriootinnanmmlleyentntrtoaeealsflptnbloihanieabstiirlbnieeltmeiescepsd,,ae"yr,taaitetiswwnchahliniuccddhhithnrrgeiermmdree-edqpdiuaiairatrttyeiiodoipnnnodsasecctmttiirvnveiiittmyyoeridssi.llsaFarirogogrenelslyiymtceocosnomiimptnolcprelliuetndtegee,daatnnihndderbreCeomomtahmaipi"nneaiinnnnvgygiraabocectnltimiivveieivttneyystraretelllhraietemecssxepppdorirsiamutiiroaemrniaflloyiratltyboooislsooitppiieenersrea"axttciaiooennnsdssa"nnoofddther ltmthoheaceaiaantmimteoononusaunnnstctt eaawccohccifrrctuuhheeeddrrweweommoeuuedldliddya,nnioioontntcbbltueeidmmviainattgteeyrrrieiiaqallluatiroregttdehhlepeyooCCsnotog-mmorpeipamnangenydy'i'sasttchiceoooCnnnsosommoliolpidndaaiattntoeeyrdicnrrgaee,ssnuuthlltttess Ceoosfoftmaoippmpeaarntaeytaeiobrpneoslsaioseoivrtbfelfismeontalahnonnecscsiesiaoaxlrlpccoroosanunndrdgieteitiotiooofnn.l.oosHsHssoowiwineneveevexxercr,ce,seofsorsoor sff the sociatedxabliched eserves forthereasonsdescribedabove locations at which remediation activity is largely on-going, the Company the associated established reserves for the reasons described above. cannot estimate a possible loss or range of loss in excess of `EEmmppllooyymmaennLt iLgitaigtaitoionn Whitaker Lawsuit: Whitaker Lawsuit: Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm one 98/114 7175588..00008988 zone Mos ensnGuBETe ADTOO ABs HTSTs 1208110 1 /1AAD3s/si20pps1rre8ecvviiCooouuussrlltyy orrfeepRpoarrmttesdde,,yiiCnnoDDueneccteeymm,bhbeMtterpir,s,:/n2/2w00ew04ow4,,.,sooesnccc.egkcocivuun/rArrgreecnh0tivanernsedd/perdooegnnasere/ffndooarrtamcml/e6eer6sr7ee4omm0pf/p0l0loo0yyc1ee1uee04oon6ff5ttt9hha1ee1Cn0Co0o7mcm8p4eap5nar/anya1y1f-fl2ioel0red6md0e_pas1up1sru0ipkrro.phroetmtrdteeeddmpcllaasosysesaeccsitioonn in in hethe peDememispnptrldliocyotteyCodbeobeudyrdttbehyotteeferRCCmoaoimmmnpespdaeabynnyyyCoiihnnuenMM Ctyoi,nuMnreisn(oni ttaehbsbeo"etlWaloo,hwwsim eaaeckkcieenr"rgtaiatis onwsrsea)plyar.eryseTrgnhrtaeaaddceclowwasmhhsopooawwfenaerlrleascauggrerle44n66tt haoongrpkdollecdaeererirtanaitstnafnsnoyuyrfmftmieemrereesdaddvluuaarrrriiineindgogsetthmfeeopraslmpopspylleioieccfsabbllee Cmpeomepmrlppioeolodnyysmtmoaetebnonetrtdyddediitssaeccmrrrmiaimmginiiennesadat(tbiiwooyinnctohohen Ctehheoeybubratsas(eitshscoeotfifo"Wabsghelitiienankvvueoiro"llaanlatiiwoothdnnseousofittfe)a.thhTuerhM,Me icinnocncmieupstdolaitaainnHgHt buaulammlecaagknneasRRnitidhggefhhrtptosslnaAAtipcncatttiyfan,fnsdpdsususneeifefteeikkrvsseeddninuvjaunarncicmoituvivasee(fogrrerimlleieis,fs,odusfbnpsypeeactieftieded 1mtcooo0tm$5i88po,5e5nw0n0s00iapsptoeeurrylcdlaianimmmaaagnoe)ts)baa(ywnpnddthhisacetphtCtoootrhmnneepoyyya'ssn'eyeffsaekcesnts.o.ddIIttrnnehJbJaalfennouuuuaranrrpdyye22rl0th0e60a,sttthhaw0eteieupprtelle6)asno,ininct,icsflfdusdffiinlcegdhbeaaaccmmkaaostatieinoodtnntfhtroooonujootginpnhaoyfao,unupreruapanddiatdiivnitoeitondnsaaamlnlnaaagimmeseew(ddlaippmslladitiiaensditmifnbifyss..ssTTetahdhtiiusste fPmfooolllntloioowwniinnwggmaaasonntuiininnooddpniipvvtioioddscuueaadallbresyelytettthlmehemeeCncetonam.te. apAAan.clylaasascsslnadcceetarhrtteiiofffiicnocauattraiioponnlaehidnseetatifrfiiifnnnsggewdwwetarahessehjhcoeeailnlsddesdinninDDaeltehlccpeeeemmcrbasbseoeernr,s2a2w0l0t00hh77o.o.uwOgOehnnroeAAnppe4rr6ipillla11i1ln,,t2d2if00f00'8sw8,c,htltaeheinemCCcowoulaursarttdyggisrrmaanibntsyesddeSdtthMhee TapinnlMacMiinumitninmfncfesess' ooomnrtanoititinnonasastolaaalscareiriereetdidyfyeeoxfxtheeeemppcptaltpsopeyoiamssoietainnotcnlapbbsueesrllpoaoowcrwttiaioncncgoearrnt0atdieindsecsfa'lmluayerdycgtgrahraemaddsceelaiaastsananansygyaotililmmtpeeeoraosnontonhorsrrwaafhftoepcrlwMMoeeyrayey411600,,ow22ri00ot0l0hd3,e,3araMwn.ddhwOewnhnhoeoAmddppidedlonoy2o8et,td2sibi0ggyn9n3,aM ChtdohoeuecrMuMtmiihnmenncdetsnsotoonttaarthCCeiooiuruerlrtatodsotffpdAAalpypippoeeafalelsms etrpoelvvmoeeyermssteednhtttehpeepuDrrDpioiopssrtetriicncegtCgCatoolouurserrtlta'e'snadsccaellaracsdslssaccioemerrrtsctiifafriircciasaaittnitiogononoddnueetccoioisffsitoohnne..iTlrThaehesmseCpCloooeuytrrmMt oieofnnftnAAweppspipteoheatal3alsMslffa.owoOuaunnndAthhpaarctitlhto2he8er,DD2yi0is0tshr9ia,cctd dcCdaeesoffeuerrotrethdahdresnDsaooivtlvirsiennqcggucCicroeerrudtanpinlfafifoanatccFitftufusaaldthodiismspppreuuoettcteestchtdehiaapnttgrwoswepeernrreilrneeegevlaewalvinsatnttatnttodoaettrhhdcesvilfcdolaearsnsscstceacrrretyiirftisfictfcaiactntiadotoainorndonsfrreeadqqecuufliaiirrsneesemmdueennnntdtsess.r.TMTohhpienCinConeous.uroTrttathoolefafwAApapaplpncedacaloilnsusrcrrtoetermrmoeacakntdlnypeddheehatdhdtee case to the District Court for further proceedings in line with the evidentiary standards def'med in its opinion. The trial court took expert `eWsheihmeornyhoencahseecslhasolcedrptrifoiccaetdion sucleasonacMtiyon i5s6,pe2n0d1i0nagn.d held ahearingon he suc o August25,2010. Anwdecisioon testimony on the class certification issue on May 5-6, 2010 and held a hearing on the issue on August 25, 2010. A new decision on whether the case should proceed as a class action is pending. Garcia Law Garcia Lawsuit "`UTTnhhieetCeCdoomSmpaptaaennsyyDiwwsatasrsissceterCvroevudreootdnnoMMrtaahyye 77r,, 2200t0099hwwiittDhh aippusurroptpfooCrrtraetdliciclcsfassost,aaccatiotno/JcnoolssleDccitiovvielscaictcoiitio(ovnhneaag"geGedaidrsicscicrariimmaiwinnaaatytii)oonn.alTawhwaesiutci,ta,swwehhiaicschhwswisansefibileeeeddniinn natedtthe USS. United States District transferred to the U.S. DistrictCourt fothe Distict ofMimncsoa.The case Court for the Northern District of California, San Jose District Court for the District of Minnesota. The case sil Division is still in he itil phase ofdiscovery. (the "Garcia lawsuit"). The case the initial phase of discovery. has since been 07107 TTiabblleeooffCCooentnenst.s IneIntmhtphilissccyaasesede,,yfiitvvheeeffCooorrmmmpeerarnaannyddioonntnheeccunurirneentdt eSmpelpolsoyydeuerooifnftthhteehCeCoaombmiplpaiatnnyyyparrreiesoske,eikwhinnigchtooFprpearpnsreiesnetndtaaelllfccnuurrrsresennt2ta0a0nddtffooorrmemeersrsssalnlae.ridedIenemsmpilptolioyyoeeneessto hatehcmeteisposinlio.xxyTnehmadimesbeyddthmplelbaiaCinnrotiimhff,pss,atcnthhhyeearirnneegateaherdee pUpnrrneecsisteeenndhttellSyycta8a8t66esstowdhtahueesrirncFcgultrdhrreennlteidaobrfitflioltrymeypeerreiemompdcl,phowlaoynhyeieceehssawpgwhlaahoionhthai8favfvsheeedssceiifggisnnneeeddaps"r"oo2apg0ptr0-n1eins"t"sof.ftoTohrhemrep,sr,seGsesaeeerenkckiiti.annIggnwtaodjnjdootiiitnniottnhheeto CCaecxaatppliorroenssr.sliTlyyshiecscxloncuulunudmsdeeeblssearthhnhodosassleopccpehaerlarnssMgooienndsscosesinncccoemtchpoeaoscasmaesldepwwwfoiiatrahstiifhniestltehhGdeerspaprnerodoeappiosolsdsleaiekddweslclyl,atasorsisceinhnsattnhhegeeenWWatahghasiketianekpraesritllhanawewssscuuaiitsit,en.TbpThorhoteehgssraceaasmmsseeees.ff.hTTmhn,eijoGnianeredcdiabbyylsaawddsdiuiitotioanlal California counsel and local Minnesota counsel for the Garcia lawsuit, represents the plaintiffs in both cases. "sTTihhmeillaalrllelygatticoensgdooffeattmhhpelicocooymemopeplslanasiinunstriinettdhheevaGGrairrocuaisafJloarawmwssusoitfaaeremepssliimomyiilmalerantorot tdthhioocsseeiminnittahheteiWWohhioittaakkheeerrbllaaawwssssuuioittf..aPlglaeiinintisfvfos lcllaiaiimmnottfhhaatthtethheeeyyaadnndd otAthhgeeerr DieDssicmimsrciiplrmaiimrllnyiaontsbaiyittyoiuone3antideidnniEeEnmmmtppleplolooUyyynemmieetsenensdtutSAfAafcetctrete.sdIInvnrareaergigoaaaurrsddrfftooerttmhhpessoseoeificceloamanimpmbsleos,l,yolpmwlateiinnhtttidffiessvcssereielmeokkiftntooadrtiirropeenprcrtoseonse,eotnnhrte""sabalarlllsyippseergorssrfooaanndgsseewwi1n8hh,oovwiwoerleriaretneiog44tn66hoeaofrathooleliddfeeetrrdwwephrheaeerlninAogde" BpBeemceicapnauluotssyeseefdfeaedbdbeyeorra3aplMlrollapiwwnostppehrreoaotnUteeclnctticsstemppdeaeriSrssvtooaentnesssdaaigegniean44is00aoalnaannrdidoefdooslpdmoeelsriaftrirrroooynmmbsaaegtlgoeewdddiitshscepcreirlmreisviomnenialstnoioafsntdt,iiwrwwoeioncitth,huorrrd,eebossprpesgecactlatoraythtghegereiairdl4eca0lai.1i8mO,nodbofufdriidnsiagsppatarhraeaottleeiiaisbmpiglepitracycottp,oeonrnliloyy.d, ." plaintiffs also propose an RattTomeSys'socse.nuncio plaintiffs seek injunctive eli, altern relief, sespeifidcompensatory damages ative definition of similarly situated unspecified compensatory damages cingback end persons that would including back and frontbegin front eyat a pay, bene, ge 40. On benefits, uiddamages nd behalf of this group, liquidated damages and attorneys' fees. rCCeoerturaitnsaoefitthhvnee eppllaprlianaiatninfbfnses'afcanintdedsppuatnuadtivitnecccaolanaesstscmtmeiieommnbvwbeieretrssh' eehmmopspleloopyylmmaenesnnttthtteeeyrrmmsiiinngaantteeedddwuuannvddeeerrrcioicrfcmucsmtasastna,ncceiesnsciinhn iwwnhhgiicachhethyeycwwreiermreinlealtiiiggoibhnlclelffaoorrns. agPlrlidoaeniucnipltaifsrfeasvtceciorliaaninmmhcetthhpeelewawnaawibiavevineeverrsfeirootsffoaafagnagedeeiddndiisicccsoircnimrmniieimnnciaatnittaoiotoninnwocncliltaachiimltmhssaowwsieeerpmereelaiivnnnasvvlatalhiliiedddy,ivshniagvrrnaieriodonuuwsasaristvepseueprsce,ctobt.fsu.ctTTlahnhiiminssss,mubiobinnsceelrautordofiyfn,regellraeaegamessee-dd-iissseigcgsrn,nimiianngigndpaplstliaooainnmitecinfylfsassim"ksese.sks Fesa declaration fees. that the waivers of age discrimination claims are invalid, other injunctive, but non-monetary, remedies, and attorneys' EEOC EEOC AgDeiscrimination Age-Discrimination CChhaarrggeess Sc`dSiSriisxxpicefmfrnoiimcronemia,nretaaritleieolommennpgpliccnlohhogyaayerraeggegeeeessssadaaanngigddiasoionnnncseetrttuchhuireerermCCeaonoismtminpmempmaipaalnnplatyylroooiwiyyteiohcheth,eneltat,hhllWeebbUUuua.tt.SS.ont.neEEeeoqqoufuraxfawdlwlEEhhGmaomprmoplclioaoaayryemmappeellnanaittwnOiOtpinfppfsopensroiditrnnutcunutlhhniaeetiiGtyymGiiCCranorgomcemtihmaamilltsaiaswwissiosucouinnaitt,s,aanhhoddaafvvvvesaarralmiilosuouoasspfilipelreeditrdtiitagnngeeeeenndtt ssptaaettreesons {eaehxgsaietssntt.sch.ieOOrsef,fltatehhlaleeesssgee,i,nofrtgchlraeeageeimffdoosirrsmscmireeigrrmnceeimdnpbalcptoileooyrnyeteeseaissmiflniilelaefrddotcrocmhheatharrreggeeeWmssphiilinntoa22yk00ee0rs05ainniithnnedpMMGiiannurnnceeisasroolttaaw,,psTTuceilxtoaseassas,nardaxdendfcdilCatanCieamadlsiilifnogftr,hnt.ehiaa.htTTaahhnceelgssaesessffiiolliifinnnsggvissmaliniinldacrfllluoydresviataaurllilaleoteugegsdaattpirioeoennrsssssonnss ndsrsg discrimination sms onbao era iret end omesalaried oye i ses other ha Mincsta and New that the release of claims signed by certain former employees in the purported class defined in the charges is invalid for various reasons and assert age discrimination claims on behalf of certain current and former salaried employees in states other than Minnesota and New Pi Ns AG BETACO OHES TAS 1200_ OK https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm sme 99/114 11775588..00009999 zane 1/13/2018 Migsohcivesadg Gat OTIOOIOUSEHIAI1O1-2O20086T00__A1H1OS0kk.hotmm `JJeeOrrpsspeeoyyr.tIIunnit22y0000C66o,,mamiccsuusrrnieontnt eeammnpdpllhooyeypeheeteetrplftsi:iol//enwddewnnawtagne.tsadetgccei.gdoasvigs/eAicnrrcicmmhyiviiinensan/tieiodasgnasiccrh/hodoaaa,rrtgnag/ea6s6aas7gei4ar0tinn/i0tns0gt0ttl1hh1eei04CCs6oo5mm9ap1pn1aba0nn0ayy7l8ww4i5itt/ohahftthheecaUUsS.S,.oEEfaqquulaalcEEummepplnlootyymmaeencntetrtain TlOfooeprmmpdeoaerrnrtsusagnalliueatvyrdiieieCdsdocemermmipmmlpiiolnsoyasyiteoeieneossnawwncdhhhaootrhgwweeoaoprgrekakreiteinddnseiitnnntthMMseitiassCtsseooomauugrprieaanannncdyydowiotnihthteMherrsitsshstaoatuUee.rsSi,.ooabtEshesqereurratthlihnaaEgnnmcMMplaliiiontmynesemssoeoonntttabOeeaphnnpdadoNlrNfetoeuwfwnaiJJtceeylrraCsssoeesyym.o.mfIIinnasl22sl0ic00uo70rnr,7eaannftfdooarrnhmmdeeercrepeeemrrmtptaipilnnloeonyyteeee Csfstitalaaelttdeeiaaafgngoeerann.gcceyyIndiiJinnsaCcCnraiaumllaifriionyfra2nto0iio0a,n,9,ascstshsweaeotrrgtfiiennoggragmccaelialrniemsimtsptohloenonybCbeoeemhseaplfafeonhofdyf awaacgcitlelhadssltishoseocfrffUiam.llSiln.ucaEurtqrierouennantltcEaahmnnadrdpgcleroesaayrtgmiaaineinnnfftsooOtrrmmphepeerorCrssotauimlnrapiretiayedndCyeeowmmmippmtllohoiysyhseeieeeoUssn.wwSahn.hdooEtwwqhoeoarrplkkeeerddtiniinnent `CEEamamilippmfllosoorsynyimmigaee.hnneIttndOObJpyappncpoeuorratrtrtuyuanini2nit0ftyy0o9CCr,motemworomcmfimsopsrmimlooneiayraneendssmditptnhshltoehpyipeeeereprtsuotiirfnnpieenlonenrtdttassetgdaaetleedaaasisggsceedrnneimccfyyiinniiaenntdiMMoiinninntncnehhesasorcotghtaeaa.rs.gTTaeghhsaeeinFfisliltiinnnvthggaelssiiCindnocfcmollulrpdlvaeacnraigylolawuestgiiatrhtoeiotanhnsseosnUthsha.taSnt. ttdEhhaqeesuresaeelllrectasaaegsoeofe.f crcdelriaspiicrmmerisismennsiatingstantitiehoodennbplcyllamaciemisrntsaosoinnnibfnboetrehhmeaWehlhrfiooefatmfcacpklerelrortayfaeianewsccauuiirnrrrtteehnnsetwtelupanundrdpffooorrrtemmtdeherecrcslslaaaasllsiaarmrdiiaeeenfdd'tmeesemmdipplilncooayytcheeheeeosscfhiintahrsgtsteaaesttesisEs EoitntOhbvCerarlpittdrhhoaafconnereMMvdiaiinnnrningeosseu.osstoatra.e.aTsTohhnees ssaanamdmeallsaswwertffiiarrgmm.e represents the plaintiffs in the Whitaker lawsuit as well as the claimants in each of these EEOC proceedings. {eITnnntJJtaainnvuuaeaarryygr22e00e111m1,e, n33tMMi erseuabcsjheecdctata0nhraagqgrrueeeieemrmeddencntotuiirnntppprrriinnoccciieppdllueerwweisittahhnppdllparaieniptniafrsfas"t' iccooonuuonnsfseetllhtoonrreeecsseoosllvsvaeerttyhhdeeocWWuhmhietaniktestraaananndddkGwGailearlrccbriieaasullabwajeswcustitt.so. cTThoheeut drtreeesnvctieraeitwibvaveeadnnasddgiharaopepvpeepremro.ovevwIanFaltfl.ii.sn3MasiMlusibzcijeseudccrtauetnrorndertnaeltpqlpyyuriiironnevddedidiscsbcocyuuustrsstshipioorncnooscuewwdriiut,thhreattdshhmaeeinnEudiqsapturrlaealpEtEiamormpanoltpifolooynyhmmoeefenstnhttteOlOpenppemapcereontsrtustunaainrytgityrydCoeCoceomummmmeimesnwnisittsssilsiaoonnandtkotworeeirslselesovboleelrvvaseelurbrmeejolleaacnttteettddohcctcshhooaaurrgrgteess described above. If f'malized and approved by the court, administration of the settlement agreements will take several months to ccoonmdpiltieotne. Theamountofthe proposed sements isnot materia otCompany's consolidated resusofperaionosrfnaeial complete. The amount of the proposed settlements is not material to the Company's consolidated results of operations or f'mancial condition. CoCmopmlpilaianncceeMMtanttesrs vOOonlnuNNnooavvreeimmybdbieesrrcl11o2s,e2t20h0a9t,,ttthhhee2CCCooommm0pppaaannn0yyycwocano9stncataoc,cnttdeeuddcttthhieenDDgenpearptemraeanltrooiffntJvJueussmstttiiigcceaeet(i(noDDnOOtsJJs)) sa8nnrddSeseSulectcouufrrirteieespsoaarnntdditEErxxeccchheaainnvggeeedCaCobomummtimsfissssisioounnb((sSSiEEdCCy))ittnoo T`vTumoruaklrtukerneyaty,al,rlsaiellaylgnedigdiinrsnegcglbloabistideeddtrrshieiagrgtgvgtiiihncnegegaCantnooddmTbbuprrairbnkeyiirswyhabagansonevdceooorrnttnhdhyemuerercntiiintnnaageppnppatrinrotoipipnerrsiti.eaaTrttneehacclooCinnnodvdmueupcscttatigninnaytccioooslnnnsnnaeescccotatniitrooeannscwutweiltidthohctfethrrheetepassoiunrtpusapfiltypcortoefpecfcedceigelvroretvadayienarbrrmoeufeeltenfictttsliavsgeeueabncancsntiidddeiistoaihtvrhyneeerirn TCmTuouarrmtkkeeperyaiy.a.nlTsyThhareeneCtdCaoriomenmlpeadpateoanduntyyssceicordonvetnicitciennosuuuetneossseTtloucrcckoooioosnphpedegrruoaatvtceeerwwnnimittahhetnthhsteeenDDstOiOteJiJesaao.snfdTdimhtSSesEEpeClCCoinmicinntiptteahh,neyCpCoraoamlsmcpotapicncaoeynn,y't'saascnootdenndcggooocniietnnrrgtgoaliiisnnvnnaefvsfdtefiecogtaesctdivotglnuooiosvfgteferthnahitmisstsmemoinavatteotatreegnar.el.nTTchiheees in cCCcooomommpmlpppialaianannnyycccereaewnwtianitiotnhhtetdtphhreoeeFudFoitrsocietrdeieiggncntohCuCionorsirmermulueptpottt PPchroracanccdttfiuiccceectssaAAnocctoartsf,,sinieetnsscslcmiundevninenstgtoifiagnanittsooionnpnggooooliiricnnwiggehrsaer,etvpvirrieaewcwteicooeffosgo,uuarrunappdrcratlcacioctotniniatccsrmeeossltasiinynaonbccdeeerrttaroakiaenyevooanetlohuraetrwcechoioautsutnntootivrbeieeesrsar..llTThhee consequencesmayresult. Company cannot predict at consequences may result. this time the outcome of its investigation or what regulatory actions may be taken or what other 10s 108 `TabTle iooffCCboonletesne.ts OtOhtheerr MMatateterrss CommercialLigation Commercial Litigation wIInnuSSeteppstteemmabgbaeeirrns22t0011t00e,, Cvvaoarmriipoouausnsypp,aarrCteoisegs,e,nootnn, bbaenehdhatlafsooldffifraaepcptuorrpusoirntretdhlecplDasesolsoaofwfrassrhheatarrCechehollodddoeefrrsCouhofafnCCcoteogrgeye.nn,t,PnIlncac..i((n"CsCooaglgelenengtte)"t),,hcacotomm3mMme,nenicnceecddofmtrherceeteeion wawliamtiwothhsuunititstsotteeafndngdadaemiernrasgooteftffshec,erfCTfoohroremCoptophagenreyenn,tcCssahohsagaerrseewensset,,,raaaieindddceeoddintasasnondlddiisredaachbtteoeetrdtes,ddeitnxthphteehderbierDteaeeadclcahhdwoiosaffcreofdivdCeuuroccyuairawrtrayyosdfdcCuiothnieaednsubccbetyyreCydC.o,oPgngelaedninnttPtdidfilfirrseeacactnltoloertrsgseaamtnnohddtasitsoee3neMkkf,o1arinnauuncpnsorpsneepnlceieicmcfiitifinieoeadndry iaainnmdjjduuoennudccnttdtiiooonniftdorameecnnajojgoofteiiCnsnoo.ttghhTreeehntettsrr,tahanIrnsenase.catcaicaposptneowiswiaonwanstseedrddeebencniyoeiend3dsoMoo,nlniadOOsactcnettdaoo,bmbeeeerxrdpd11ee,,df22ie00tn1e1d0d0.a.dnOOitssncn,oNNavnoeovrvyeeamwmsbabresetrrce1od15n5,ad2,du20dc01it1t0e0od,,n,appallnaadcinlPntailifasfmissnoftliifeflefbdsda' amnenaoamtoimeoafnnenfdfidoecderdudccaichopaomrrmepyllpidmaluatiiininneatsrtyhhiana:t cdacoedonfndneeenncdedtciditniioorgnenwcitwiostirmtshhatotthhfeeeCtrotrrvgaaienngnssoatar,ccotItuniisooclnn.yaaapnnpddoaainsstuuebbdssbeeqyquu3eeMnntto, foaffsefnerriainmnggepdpeerdrieioofeddn.. TdThahneetrst,nraasnnasdcatacstoisonenrtcecldloosasdeedddoiotinnoDnDeaecl cecelmmabimbeesrr |, 2010. TheCompaniys: ofbreach of fiduciary duties 1, 2010. The Company is in defending this matter vigorously. CIInnomSSpeeapptnteeymm,bbCeeorrge22n001t100a,,vnvadarriiitoosuudssirppeaacrrtttoiiresss,,naaggtaahieinLooannsbbeAehnhgaealllffeoosffaSapuppuuerrrppiroortrCteeoddulrcaltassfssooroftfChCoeogSgieennnettsoshfhaCarracelhhliodlfedroesrrs,,ntccihooatmmmcmoenentncacieenddedssisiximllaialwwassruuicittssamaaggsianitnshstatttth3heeM ashCeaodpdmaaraipadiadtneelydaa,awnCnsdodusgiateebnwetttaatseenddcttohihtemesbmdbreirerneeaaccccethhodroosfifnifnfSiiedtdhpuuectcieiLaamrorbyyseddAruutn2tigi0eese1slb0ebbysyyCSCaougonpegeneirnintodtirddvCiiidrrouecauctlrto,otrarfsso.g.TriTthhnheeeobpSpatararttteeieeosshfhhaCoavvafeelariferopeauracnlrchiphaoeerdtdfhtaeaadtrrceecsoslonolatlusautiotinifooenCndooosfgifmetthnhieletassreesmhcmaalartaiemtehtoesslr.sdth.eraAAst,3M apaslgegaapaiiainnnrtsasitttfefCClolaoatggweeernsnfutitiltaaewdnnddaasniitasscmoddmeiirnrmeedcecteontdrcosceriodisnnmintpthhlSeeaeUUipnnntieittmtheeaddbteSSraat2lat0tsee1ssr0DibsiystatariitncchtimenCCCdoooiuvuermirtdpt uaffooardnthlrey, tC.ahgeeTanChinteernoptnarallbleDDahaisniltfhrotiascsftoatvofpofluCrCauralpniilotiffraocotrerrydnntiiicaalsathhmssatitosrfeaiCidssoetddghsaestinimmtliaslihwlaasarrurceichtllaoilsmde;sr;s, plaintiff later filed an amended complaint that also named the Company. The plaintiff has voluntarily dismissed that lawsuit. r`SSieegpphaatrsraauttneelldyye,,rssDeeevvleerarawalal rppeuurrppaoowrr:tteeTddhbheoClldoemrdspoaofenfCyCoirogsgedsenntetfsshheaanrreedss,i,trrnheeigppsrrmeeassetennettirinnvggi.gatortoolutasllyoof.fsappporoxxiimmatteleyl55..y88 mmiilllliioonn sshhaarreess,, hhaavvee aasssseerrtteedd aapppprraisisea!l rights under Delaware law. The Company is defending this matter vigorously. CIIannOlOcitctfoobobee,rr2a20l0l1e10g0,i,nAgAvveerarytyDD3eMennnmnioisnsooonnpofllilieedzdeadlaoarwwsastiumtitpaagigaeaiidnnsstttotmhhoeenCoCpooomlmipzapenyatnihnntemhthyaeerUkUneinttisteefddoSSaTttyaetpesesXDDiIisstrtrreiiccrttoCCrofoueurcrtttiffvooerrstthhheeCCeenetnnrtraaalnldDDifissottrrrbiiccrttoooaffd California, alleging that 3M monopolized or attempted to monopolize the markets for Type XI retroreflective sheeting and for broad Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm oonte 100/114 11775588..00110000 zane Migs heeOTdICOIOUSEHIOAIO2T080A_HSOk om 1/1Ahh3ivi/gg2eh0hrp1ype8aerlrffloogrremmsaatnnhccaeetssh3hcMeteitmningga,, bnbotihoohopftftptwwushht:he/i/liwscctwhhaahwnrad.rtscaeercuedu.gsssesoddve/tAffiorrcnrhghbipviiegrgshoh/wevcdaaegyyasross/diifgagnAtnaaa/Sgg6e6eT,7,M4iin0n/I0vv0ino0il1ea1lt0iro4a6nao5io9ft1ofto1the0nne0p7rSSa8ihh4vle5ea/rrt,amme1aa1snn-t2aAA0n6cdc0at_,r1daa1ss0wksw.etheltillmlnaags otorhtgheaenrriczclalatiiimmosns.. raAreenvsspetproocynnossaiimlbblepllegeeefftsooirrthaiccarcrvteeseaa3ttMiicnnlggmussadtanaininnpddguaarlralddtssesfdfoortahr rereedstrtraoevnrledeefaciretdcrsintivsvdteeesdttihsiihnsepeegsatepritiraninogggce,,nemeseensnngtttoee,frreeAAddvSeinTnrytoMo'silIleanlengtgeiartalnrlaaaestnitxodnlaaaawnli,stciuaciooptmmrfpivpoeaeltttelittoiisvwtvaesnccdloanaortdwrsrascstetsht,tiraanxngddaScoMeorcnfggglaataneggidez,eadcdtaiiiolnniootehiernr c2a2en00rt11ti00caioaanmgg3aapiiMenntssiptttiavAAtevevneaetrcryyrtsiniginhntttcsh.lheu3UdUMni'ninsgtimteefoaddtlSisSieotsnaaetdetsvseDDrptiriissetislrniigccmtianCCnaoorduiurdlrtyitsffeponoarjrroatthihgneeemtDDhieiessnttsrtr.aiilccAtetosvooefffryAMM'vsiiennarnneyets'istsoruOtastlcalliaawmiCmisuuinbnigetgrfhtothalarltotrAwAevsefvrelayrc'ylats'swiOOsvmumnistintCihhCuauetbb3eecM pwpratrofsoidlddieuuedccnntetiainegrnfldfiireiinrnngigneess DsecDhceeerecetaemiimnnbgbe3deM rro22p0c0a11nt00eon..t33irMMnigfrhaaitlisns.gooe3ftiM iwleeo'dds Amssvuuoeiittriiioynnnp22ta00o11tp00ars.eskleiemiIkniiFnngeagbriaaudlyeadcreelcynaljrao2ar0iatn1to1otrh,ryyehjsgueadleeUgnsmnioteetfndAtStvthaheaartttys'33sMMOD''ismssDDntiiiCatamumJboouennddrdeetGGrororarareddtfeeleeDDcCGtGievS3netffsuualhlllleuecDtuibisbnteegrrirwceetrtaorosofrrdeeCeiafnllceiietcfditoivrvinneeia ranted thCompany'smation toranser Avery's ants suit tthe Disotf Mrininescotta. sheeting does not infringe two Avery patents. In February 2011, the United States District Judge granted the Company's motion to transfer Avery's antitrust lawsuit to the District of Minnesota. for the Central District of California cIoInnrDDeiecceermmebpbreeerrs2e20n0t11a00t,,ioMMnoseddnaadAAwBBaffrilleeedsda llcawaosnwusistiiuinditthhtenetSShuuppOrrceetmmoeebeCCro2uo0r0tou6ofaftqrthhueeisSSiattatiteeoonofsfNgNreecwwcmYYeonortrkk,p,uCCroosuiunantnttyyoooffNwNheeiwwchYYMooorrkd,,aaalllAleeBggsiinnqggbubrrieeaadccthhhe `mcCCeioorlmtmalpipinaaonnrnyiey,'np'ssrceEEosmueupnrroetoapnptseieoaaantnsopprahhynaadrdrammwamacaacergeureutasintictcliaaelllsgbbciuuonssnigintneaestisnshs.ae.tdTTMihhneeitlhlalaewwOsdsucuittitotosbsedeeerekk2ssi00to6srraeedcccuqoorcuvvieinesrgrilttaionhnoaadammugoeorsueundenitmtleitoeognebbt,neecpeuddreespttueeerarrimnmotidint,noeecddwertahttaiicitarhnilapMlr,ibebcduiuatntgAnnaooBmt aslaencssgqseuttmihhreaeanndnttS$sh22e0000 bpmbereiettlswlwcioerenienpn,tii3nNoMnc'o'pssmhFFaprrmeeeannncsccachhtuossiruuycbbsadsisiadd.miiaaaArrgyysepatasrnneahdvlliteeohgueisnFlFgyrrseetthnnaacctthhe3ggdM,oovvhfeeaerrinlmdemedaenmtnoattgdaaeiggseeacnnlmoccosyyeuth,nhdttautdrsdeipnetetgeceirrtfhmmiieeinnddeeuissnettcdhhoieemliplegllieiagngiicinbeltleespelreerevivomeedolss,tcoofefrrmetaeemiianmbnpubirnurigrcssfieneumglmeeacnrnrttaffonoogrreinmaennyts sWpaisrleslesscsvsriimgpsoterinootnusoospflfhtytmhahderemefCCeaeoocnremdnnuppftatia.cnntayyl's'ss. potential abil:TheCompanybelieves i ha numberoflegal As previously stated, the damage amounts specified in complaints potential liability. The Company believes it has a number of legal andare and factual defensesto tisclam nd not a meaningful factor in any factual defenses to this claim and will vigorously defend it. NNbooiTliilaabiiililtisttyyoyhbtaapssrbboeebeeannblrreeeccaoonrrdddeeeddstffioomrattbhhleee CCtoomhmpipasaninyny'e'ssaccoommmmtehreecrCiciraalnlplliaitigngayattiiiononntddeessaccbrlriiebb1ee0ddeiisnnttithhmiiasstesseeccttpiiooosnnsibbbeelcceaauuossseetothhfeeCrCooammpnopaafngnyyoesbbeellgiieivvveeesns ttthhaaett limitedactiv in these liability is not probable limited activity in these cases. and estimable cases. at this time and the Company is not able to estimate a possible loss or range of loss given the French Competition Authority Investigation French Competition Authority Investigation `OOCnnomDDpeeetccietemimobnbeAreu44rt,,h22o00r0i08t8,y,tt(hhee`FCCoCommAppaaanlnyly'g'ssinssguubbassniiddsiiaarryyiuinnFFr4radsanoncmceeine((a""3n3MtMpFForsraainnticcoeen""))erreecgceiivaveedtdrahSeStstiaauttpeepnmmlyeenntotfoofOfebOtjboejceetcliteioocnntssifvfreroofmmilhtmhseefoFFrrrveeennrccthhical sCsDiigogenmniinpncggeateipatppio2lmpin2lci,bcAaa2tute0iit1oohn0rnos,sriiittnynheFF("rrFFaaCnnCccAAeeai"an)ndasdlplpaesaargrtitidnuicecgciiippeasaanittodiiaonobnnufsiiinenndcaoiofcnnagocnhdecoaremtrteietndhdaepnprerrtaapwccoattisiscicteeiionwwsniuitftrhhfeigttchahireeednmmtineaogvjorithrdeeFFnrrsceeuennptccpahhltymm3oaafMnrnuefutFarrocfa-tnuraecrfeeclresptcaooturfifvirvceveierefptriatilrimctcaesasldlfisionigrgasnv.sye.rstOOiucnncalh crDcooneencfcecleermcrtitebevdedpripr2ram2ac,sctt2iii0ccne1.t.0TeT,hnthdheeeedFFfFCoCCrAAAahalielssosmoufaenfooduuufannaddcdttetachhiraasittino33gnMoMffFmFrveadrarninntcigcsceftahfloraostmimtgh2ne20sr00et03rw3otatuoosgi22hn00sd00u55ffibiacbuiuessnseetcddevaridddoeominrmiecnbiemnaatatnhnetiatsptapo3nnosMdstiatcoFihonrantarnaooccnonteettprhhriaeesrtFtFyiircrceeiponnafccthhietdmmaiaanrrckkaceenrtteyfdfosoiruarctrrhieeottrrnoosprseoyyfssslitetetcemotminv,anetndhdfeiClfiminnseeoddin33temMMndFFdeprrdoaanefnaoccsreentoh1n1..e99p7m7ylmmaainilull0lfiiaoocannptupEEeruuairnlro.ogss,To.WhfWhevheCiriolteimcttpahhelaesCniCoygdonmmsoptpeaharnnonyyutgddehiixssdapagiegsrccretrceissmawwniniyiatthathodttrdhhyieetroFeFnbCCaaAAlte''gss addaenteccdiiissociihnooannroaooacnntresarbsisutsirbceoosofmofuf4atidhtdeossomFamicCncinAeraeandndteittcaitsioionn. position, the Company does not plan to appeal. The Company does not expect any additional litigation to arise from the FCA decision. 3109 `TabTleoofifCCoolennteesnt:s NOTE 15. Employee Savings and Stock Ownersbip Plans NOTE 15. Employee Savings and Stock Ownership Plans "sTTuhhbeeCsCtoaomnmptpaiaannlayylslyspprooenngsusoloarrrsseUemmSp,pllooeymyepeleossyaaevveiisnn.ggssEpfplflaaenncssuvuenJndodenerruSaSerecycttii1oo,nn244000111,((ks))uoofbfttshheeaInInneltrelmarnaylallCRReoevmvepenanunueeyCCcoododene..iTTbhheuessseeposplnlarasnnssmaaaerdeeooiffnffecreaesrdhet.tdooDuring. 2J2sau00nb00us88atartthnyhetei1aBB,lolo2yaa0rar9ddl,looerfefmgDpDuililcoraecyrcleUtoor.rS4ss.0aae1ppmKpprp)rooclovvoyeeneddvetvasr.rairEiioofbufuseuscttcciiohhvaaoefnnnJuggasepensstuotoao6ry%tthh1e,oeef2emm0lp1ipl0gloo,iyybsleeueeebscsstaaoavvmniiptnnieaggnlssslyapltlaaailnnlos.Cn. orFFmoeorrpsmausnubsybtascataonntntitatiraailbllrlcuyyattiaaeollhsllnoseefmma6eprp0ello%omydyeaoeedreses7hih5inir%rcee,addsdphper.rpiiDeonru0dtrioinngg o4Jon0ant1nhtu0heae)ryppclo1aan,nt2tith0hbe0eue9te,mimoepnmplslpooolyfyoeuyeeepppeatar4or6t0tii%lcc(iikpp)aaotftceeeolddinigitnnri.i.bbElEuemticopomnlmospyoeepfnesusaphhtliitiroroeend6do%oaonnnoodyofaraesalieofgrteirbreJlecJeaeanicnvuouseamaarrnpyyee1n1,m,spa22lt00io0o09yn9erareerecceeemiiivvaneetceahcnceaadssahhitmnmracataotcetmcshehaocooffcf6o101u0%0n00t%%ocrfaf7oos5rrh%ecmp,ondlpteloropiyyebenueetdeiionng 401 (k) contributions of up to 6% of eligible compensation and also receive fGcti9%onosf.the participant' totaleligiblecompensation All conrbutons se of 3% of the participant's total eligible compensation. All contributions are invested in an employer invested in a numberof investmentfundspursuant o their retirement income account cash contribution number of investment funds pursuant to their elections. "tTThhheeemCaCojomomprtpayannyoyfmmtahiaeniCnttoaamiinpneeaddnayann'sEEmmcpopnltlooryyiebeueetiSSottnoosccukknOdOwewnre4nre0sr1shh8ii)pp PPellmaapnnl((oEEySeSOeOPPs))vitthhnaagttswwplaaassnecss.stiaTboatlbiasllhiEesdSihOidnP11s9h98a9r8aeasss9waeccrooesttc-oeffnefscetciitdivveeerwewadayytooboeffsfhfuuanrndedisinngg. oustandingfor caingspershare calculations. The ESOP the majority ofthe Company's contributions under 401(k) outstanding for earnings per share calculations. The ESOP deb mateidn 2009. employee savings plans. debt matured in 2009. Total ESOP shares were considered to be shares DirDveiivpidadeeynnpddrssionomcnsisphhaaalrreeassnhdheienldtbrbeyystttohhenEtEhSSeOOoPPuwswteearrnedppiaaniigddEttSootOthhPeedEEeSSbOO.PPTtthrruaesstttaaaxnndbd,e,ntoeofggieteteheerlrwawittietthhdoCCdooimmvpipdaaennnyydsccopofnitbdriuboiunotiunonnsasl,,lwowecearrteeeudussseehddabrbeyystwthhaeesEESSOOPP wStceohhararrerggpeeeaddyeddpsiirrirenccttiflypoyarttlaoolaclenqoqducuiaiintttyiyteoaarnenntsddot ttopoaantraittlheieecddiopsaauppntptspstrraobnoxadixsmieindagmatleEnleSyt$lO$hy11Pmmdaietilblliltii.ooofTnnhtiiennh2t2a0c0x0u09rb9eseannnnteddyfie$t$a22rre'mmlasitileldlldeioobtnnosiidennirv22vi00id00ce88.nf.doOsvtpevhaeerirrdtethhmoeeaniliuinffneiaonolfglftdotcehhabetEteEsdSSeOsrOhvPaPidrcedespebbrw,ti,assshhtaaorreehsse current payment. were released for current payment. allocation to participants based on the ratio of the current year's debt service to the remaining debt service prior to the Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 7157588..00110011 Toute 101/114 zane 1/13/2018 Migsohcivesadg Gat OTIOOIOUSEHIAI1O1-2O20086T00__A1H1OS0kk.hhtomm sUUnantnitildla22r000d099e,, ttahheetEEiSStnOOo PPemwwpaalssothyheeerpp'rraiihmctmtcpaaosrru:yy/fn/wfutuwinnnwddgi.sifnneoggcrs.egsumoopvur/lrAecorecyhffeiooverrssttt/hheoeedcCgkCoaormo/mdpwanapteanar/yn6s6y'h7'sis4p0ep/mp0l0plo0l1yoa1yes0et4ehe,e6s5saa9dvv1ie1inbn0ggo0ssf78pt4llh5aae/nsasE..SAAOssPwppeearrmsmirittteeecddobbryyadaceaccsdcooudunentbtni,ngga.nd SCsshhthaaaanrrndeegssaerppdslseildrnegEleaeqdtuaiinadtgsyc.cotgoolUllenlaeamtcteeaprdrmalaolelydwwereecsroe'emarprceeecppnooosurratntteetiiddno1gansfwuouanrnseceramaermndpeeuloddcyeccedooesmmyspmtpeomenecnsktsaraotitiwciooannnlelriiynsnhttihhpeetpCChloaonnnEssso,SoltOlihidPdeaadtmteeeaddbdteBBolapflrnatihncnecceieEpSSaSlOhheepPeeatwyaaannmsdderCCenocoatnonnssrsodoltelihdidedaaadstteeedbdde.bSStEst,axeatpenmemdenensnettsooff freirClerhalaatvtneeagddletutsoeo)ittnahhenEeEdqEcuSSaiOtOsyPh.PiUiinnnnc2ela0eur1dndee0ddattnocotodtaaml2l0pdde0eenb9bts)taststeoieroervnvmiipwcceleaosonynretetdshhsueeacnnveooidetnessgsy,s,mplseamssnsestddriiitvcvoiaicddlleoeynnvddaesssr..toThTbhelheiEegCSaCotOoimPmopnpmasnananodyytefccopuonrnntindrtrcieiibbdpuubattyleetpddhtateryreemEaaSsesuunOrtrPsyysorshnhapartorheeerssdi((aesdbccctac.ooEuaunxnntpeeeddnfsfooersraatt employesbench expens), fair value) and cash (in 2010 employee benefit expense). and 2009) to employee savings plans to cover obligations not funded by the ESOP (reported as an `EmployeeSavings andStockOwnership Plans Employee Savings and Stock Ownership Plans D(iMtviiltldioennns)dson haresFO By FeESOP InCDCtooievmmripedpaseatnnnidyynscccoonountnmrtserihdibbaourutnetisiooEhnnSessOldtoPotnbhtoyhetetehEEseSSEOOSPPOP `AIAnEmmtoxeorupeunesntnttsssinerrceseupproeorrlertatdeetddoendaasE0aEaSnnOSeeOPmmpPnlpooldtoyeeysebeteebsbeeenvneifecifitet eexxppeennssee:: EExEExppxxeeppnneennsssseeeesss rroeeerlllaaaCtttoeeeddmdtpttoooaEtnraSeysaOcsuoPurtrydyrsebhsbhattarisreeeosrsnvsicmeadein cash Expenses for Company contributions made in cash mo 0 no 2010 2009 2008 s =F TF 5 $ -- $ 31 $ 33 - 16 ie -- 16 14 1 3 1 3 =---- 2s1100 939 "-- 025 =3 97 6 -- ESOP Debt Shares ESOP Debt Shares ACAlolmllomocicatattieeeddd toberelessed Unrleased Committed Unreleased to be released me 2010 =-=-=-- we 2009 TiaamAnm 14,473,474 ---=-- am 2008 TT 14p00% 14,240,026 27200 27,201 men 1,333,692 `$VV3aa6rriiomouiulsslinonnete,rr$na2att2ioomnniaallliccooonuunantntridiee2ss 3ppaarrmttiiiclciilppoaantteefoiinrn2dd0ee1ffi0inn,eedd20cc0oo9nntstrniubdsu2it0io0o8nn,pplrlaaennssps.e.cEEtxixvppeeelnnyss.eess rleulatteeddttooeemmplpoloyyeerrcocnotnrtiribbuutitioonnss ttootthhesseeppllaannss wweerree $36 million, $22 million and $23 million for 2010, 2009 and 2008, respectively. 10 110 `TTiabblleeooffCCoomnteensts: NOTE 16.StackBased Compensation NOTE 16. Stock-Based Compensation aInnMdMsacayyo2s20e000d88s,,dssthhhaaerrc2eh0ho0oll5ddeeMrrsasnsaappgppreroomvveeenddt33S55tommcikillllOiiowonnnesshhraasrreiesspfPfoorroiigsssrsuuaaamnn(cceeMuuSnnOddPeerr,ttthhheee""333MMMPe22r00f00o88rLLmooannnggc--eTTUeerrrimmtIIPnnlccaeennn,ttaiivnveedtPPhlleaan'1",,9w9wh2hiDiiccrhherrceetppollraascceedd iSaSntnctoodrccesakkusOOicncwwgenetnedhereressdhhnitiuhppmePbP2err0oor0ggo5rrafaMmma..apnpInnarMgoMveameaydyes2n20ht01a10Sr,0etos,cfsskrhhoaaOrrmeewhh3noo5ellmdrdiseelhrrlisspiaaoPpnprppotrrogoo6rvvaee4mddmiaa(MnnllaaSoddOdndiPistih)io,aonrtnheaaslel.322AM99wmamPirielldlrlisfooounnrnmssdhaehanrracteersifUesfoosnprilitiassPnsslumaaannan,cyceabeneuudnntdsdheeeurr1tdth9h9eei2n22t0D0h00ei88refPcPotllroaamrn,s,of IRneiIncnsectcnrreetinacitsitvvieenedSgSSttttohooeccckknkuOOUmppntbitiiteoosrn,nosO,,ftNNahopeonprngrSqoutuvaaaeicldfikfisiAeehwddaarSSrettsdoosfccr,kkoamOOnppdt3Pti5ieoonrmnsfsi,o,llrPPimorraoonnggtrcroeeess6ss4UiivnvmeeiSitSltlatiooodcnkksOPOhpeatpfriteoiosorn.nmsAsa,,wnSScatoerodcScskkhuaAAnrpdpepep.rreAetcwhciaiiasrttpdioolsnanndRRemiigngahohytmtssib,,neRRaeitessesstdturreiiiccdnttseeihnddatSSrheoteosccfokok,f,rm of ScRchoaoemrsmetmmrsiocoftnnoerdssettSovotcecokkrcoykototUhhneeenrsittthhshaa,anrOnetcoohpopetvtriieooSrnntesosadcanknbddAySswStutoacorcchdkksa,AAwapapnprpdrdrePec(ceifiraoafrtotiifrooumnnlalRRvngaicghleuhtUests,n, ipetaesrrradttnshhdeewPi22e00tr00fg8o8rrPPamlnlaaatnnnd,,ccaecotouSsunhpntartrieaaosggr.aaitAinonswsMttaattrhhydees616d,4enmm2oi0iml1lll0iiino)o,anntoessrdhhaa1irrnee2ls.lh8ii7mamriieststhaaaosr3fe3.s.33f88or eaesvhvveaaerirryeylsbaolfnnoeeersfoeshrhvaaegrrrreeyaccotoonvvueeersnrehedddabrebetyhyrcsosu2uvc0cehh0rea8adLwwobaaynrrdgdsu((TcffeoohrrramffwuullaIllnrvdvcaea(lnlfutuoeiervaaefwuwaPlrallrdavdnsaslPuwwreioitagthwrggaarrmraadnnrstedwdaa3ittt1hees,sgo8orfa2fn6MMt8ada3yaytse11s1so1, ,p2f2rDi0o0e1r0ct,o1oeoMrrma0laebayt),ee31r.1)r1.,,TT22h00he11e00r,r)e,meoarmiansian2g.io8t7onatsahlisashrhanearsergesfos:r available for grant under the 2008 Long Term Incentive Plan Program are 31,825,085 as of December 31, 2010. "tTThhheeeCpCoemomprapnafyn'yo'ssoraafnnminnnuudaaalilvsnsittdoocuccakkleoopptdtuiirooinnnagandtdhrerpeersstetrrciieccdtteeiddngssyttooacckrk uaunnniitdt ggtrrhaaennstiisizsemomafadtdheeeiiinnFaFneenbburrauulaarsryytotcopkcproroomvvpiieddneesaastsitooronnngggaraannnddtsii.mmTmmheeeddigaiatteerl0linnakkcbibnegetthwwtleeeeenn damtehtmpeleppoaleoytryef1eeo0ersmsyeuuaassnrescsstetfhhorefoilmcnolddsoiistvniengidgousfstagtlorosaccndkkptupr.ririnAiccgceetochonenohptuherneegctgreraidalninnnettgdsgdyeaeet.qea.ruSSiattneaodccrkkthooeepptsticiizoonenossovfvgetoeshfstnetoeiorvxiveapenretrnnausipeapelueronsriitdooondedcrfkforcoommmnopooeennesnt0aotti-tohhnrreesgeeryayuveneeatassrbr.tssiTwswnihgtieptthhegtrrthahaieneoetdnxetpaxoipptrepiarlritaiogitaiiobocvnlnhe, 5rrdee5aqqtaeuuniiarrdtiinna1ggt0eccyrooemmhaparpesvenifnsnrsaogatmtciiooodmnnapteelexxepopteefenngdssreefanrrvtee.ccAyoogcgnceioittuoiooafnnnstiwenwrrhgvheiresuncnl.e4asnArpeeepmmqrpupolixlrooeiyymreeaeeetcieosiselglyneili2gitgi5ioibbntllo3eeof0ttooepxrrepeetteiirnrrees..ceEEouemnmfndptpelhtorleysaoetneyooscenkra--eersbecuaobcsnosestndaiscndiotdeimevrpreeeedndvseeeasllttiiigginiiogbbnllpeeetwtrooaiorrredetdtiairrepeepxtarotpaaagrcghee., dd5Bo5oelgllaliaannrrdssniaaanfregteferifoonhr2att0vhh0iiin7ss,egretcehtoiermeeCepo-llemelitpiegagdinbtflyieverppooypleeauarltdsaitoiotoufhnnes;;ecmtrthmvheeeibcrreeeed.fforoArroe,pf,paHhridoiggxihhiemeorrsanstoteoalcyck2tb-5baoastksoeo3dp0ctcoipomoemnprecpenegnsnrtasaatonttifieootdhnnueeenxsxdtppoeeecnnkshs-eebeaisssMerrSdeeOcccoooPggmnnpipiazzeeennddbsainynttioethhneedaifwaisracstrtdqiqtuuehnaxarrpiteernr..se u pnBuremigmibnaem nrrioinofgltfoyeienb mmr2peps0llto0ory7yie e,eceeethsdeeeslliCr ioggoieimbbllpneeiattnsoo.yercerHeceodeiwuivveceeveedaarnnt,nhnueuaaasnllsuoggmcriabanrettresadoaanwfnidtdtrbahnbdytyishtesiitohfnriifeatsndlinugscgttoaaicokponooirptitrotiohnenoosiffgtutrmhhabeonaetarenndnnonuufunacaldiegggrrrbaatlnnheteteaaMmwwpaSalyyOoyPfferropeomlsma,nttrhrbaaedydCiirttoieioodmnnupaacllainssntgyoccptehkreopovptitoidonendss oapaprtnoiimneoean--rtsiimlmTyeheteo""sbbreeuuosyytporotiuucittto""endggsrarsaartnonetctnkinonnu22gn00ui0ta0s7l.7oiHoffofirwreeeestsvtorieicrcc,tteadodspststotiocoocicnakksteuuhdnniawittsiwtfhetoorttehtheegerreiaimdnmipupeacadctcitoteenddceienmemptrhlpeolnoynypeuaeemrests.bi.ce33irMpMoaanfaltelsslsioguhnihabdasleesrgtgerhmraeanpntlte1oed9dy9epp7erosro,got2rheg0es0rsC2ievoeMms((pcsrSaleinlooyuOvabdpdeu)r)Ptovf,iodred `fwoephctiiwtcohinvshht.eheeTrdiharetelelsocemaodapyffteisoeaintltuslreeaqruwweaalansisofncyelqtiioummraiielnnicfaaiiteeevdddesiitnnnoe2c2kw00p0or05opgt((iroooennnssastipphvrraeoot(sswppreeieccrotetiidvvg)eersabbntaatosseicidssktoooonpnltclyiye)o).rn.tsaPP.iaanrrtptiiaccriitppiacaninpttsas who hid nts under who had optgirantoednprsi the 1997 or 2002 MS options granted prior to is OP, but to this for effective date may still qualify to receive new progressive (reload) stock options. Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ante 102/114 7175588..00110022 zane 1/13/2018 Migsohcivesadg OGatTIOOIOUSEHIAOIO20T80A_HSOk hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm ITrnnaanatddsdd.iiTttiihooennCttoootmthhpeeaaannnynnusualul ggsrraacnntatss,s, ttshheetCCeoodmmpRpeaasnntyryimmctaaekkdeeSssottoohtchekerUrmnmiitnionrggdrnrSaannittcsookoffsAsarptorccekkcooipptttioioonnnsRs,,irrgeehsstttrrsiiccntteceddersstttooiccnkkcuuonnuinittssraainnedds.toTthhheresrsetsgtorocacnkkt-bbsadassoeeddnot `wFrgeirseatunhlltatsui.lintnTsthtthaehenCdis isosnmugoappnatcns ieyooonifssfCs,Cuoroen emmssmtcmraeioscnhntesSSdetsttoottlocceckkdkax,RnodedrsarterreietcctoccenotdsneSisdidtdoesecrtrkeoedcdUknmimuiatnsmittaeasntsredtriiDSa]etlocbbceyykmttAbhheeeprCpCoroe3m1cm,piap2ata0inno1yyn0..RTTihhgeehrrtes werein ce were approximately rtain countries. approximately 13,524 participants These grants do not 13,524 participants with outstanding options, restricted stock, or restricted stock units at December 31,2010. ArAmmeoouusnntttsssrrrteeoccciookgg,nncrieizzsteetdrdeiiicnntdetthdhseetoffmicnkaaunnncciiiatalsl ssattnaatethmmeeennGttsenwweiirttahhlrreeEssmpppeelccottyoteoessst"oocSktb-obacaskseePddurcccoohmmapspeeennsPsalaattniioo(nnGpEprSrooPggPrr)aa,mmass,r, wwphhriiccohviinniccilldunuddteeehdtstofoocclkklooowppittniiogonnassb,,le. "trTeTohshIeterniiiccnentcnecotdmiovsmeetotuScakxtx,obbrkeeensnOetepfrfiitcitittssoendssshhsoot(ow1w5cnn0k1ii)unn.nttihThtseeheataanbCbdlloeetmhccepaaaGnneffylnuelacrstauutlacEgtermbtabnypuytpleopeadyeretr5ieioo0sedd'sSddiutunoec2kto0ot0Pt2huherechaamamsooeuunPntltaoonffe(eGmmpEplSloPoyPyee)e,ea""rddeiispsqqruouavalliiidffeyyidinngignddtihisseppofososilitltoiiowonnissn""gretelalabatlteee.dd to Incentive Stock Options (ISOs). The Company last granted ISOs in 2002. StockBased Compensation Expense Stock-Based Compensation Expense oCa(Mmsitlleioonrs)sales RSCSeeseollelsliaitnnroggcf,,hsgg,aeedlneneeservraealll oaapnnmddeaanddmtmianniinsitsrrteraaltttiivevedeeeexxxpppeeennnssseeesss Research, development and related expenses w 5 nnEFio VSer ndwe mem31eWsrFme2= 2010 Yearsended December31 2009 31 $ 38 $ 209 144 34 35 2008 43 122 37 SSttoocckk-bbaasseedd ccoommppeennssaattiioonn eexxppeennsseess s mos ws m 274 $ 217 $ 202 Income taxbefits Income tax benefits s [CR(98) $ @(62) s$ 0)(71) `Stock-basedcompensationexpenses,netof ax. Stock-based compensation expenses, net of tax s ves 155s 3 176 $ 155 $ 131 m111 `TabTleoofifCCoolmnetreenst.s "Thefollowing abl summarizessockoptionactivitydurin thetwelvemonth ended Decembe31r The following table summarizes stock option activity during the twelve months ended December 31: Stock Option Program Stock Option Program 5 Under option-- JanGuraartyed1 : January 1 GrAaPAnrnnotnnegudurae:alslsive (Reload) ExeOrtPOchrtiohesgererredssive (Reload) DeCcaECenxamcenberccleeilseree3ddd1 OptDioencsemexbeerrci3s1ableDecember 31 Options exercisable December 31 CNeom m BR Number of Options 2010 Exercise Price* MABE SMI 74,268,165 $ 72.39 sma 5,788,313 ss105 188,105 29m 27,911 Games) (9,678,654) ss90 (258,796) Then 70,335,044 _SS201617 58,201,617 nm 78.79 se 88.67 nn 82.13 SI 59.11 776 70.76 $m $ 74.80 $7587 $ 75.87 T NGeWW er Number of Options 2009 Exercise Price* sem STI 75,452,722 $ 71.96 cstv 6,649,672 eis 68,189 asi 4,654 (Es) (6,930,544) __ores9 (976,528) _Tawis 74,268,165 _@414398 62,414,398 59 53.93 nx 77.37 S085 50.85 4B 49.83 mse 73.50 $m $ 72.39 $77 $ 73.73 TN oaaWF E 2008 Number of Options Exercise Price* MEBs Ss 74,613,051 $ 70.50 same 5,239,660 man 78,371 03 20,389 Ge) (3,797,663) oles (701,086) _Bamm 75,452,722 _@ama 63,282,408 na 77.22 5 79.53 7925 79.25 38 49.38 m1 79.12 $719 $ 71.96 57001 $ 70.01 + * WWeeiigghhtteedd aavveernaggee OuaOtvusettrsaatagnneddriiennmggasihshnaairrneegsscouunnntddreearrctpoupiatloionfnicinncwcllauusddee5g6rgarmanontntsstffhrrooammnpdprreheveviiooaugugssrlpelgaaannts.e. iFFnooirrsaoippitiovonanlssueoowuwitsasttsaannSddiEinn2gg1aamttiDDlelecocene.mmFbboeerrrp331t1,,o22n00s11e00x,e,trthhceiewswaebieligeghhatteedd-. maDDiveeleclrceoanmeg.embAerbersme33o1r1af,,iDn22ie00n11gc00,ce,ottmhnheetbrwawee3c1eitru,igg2a0hhl 1telei0fdd,e-aawvvheaeresraaeg5gew6eamrrseeoSmmna6atih5innsiimanninggldclcotoonhnnteortrfaaaccgctogtuumraeaplglealinitsfefeawitwnaitarsoisnn44es7i7mxcpmoveaonnlnsuteethtswhhaaantssdh$ata8nhsd2teh1eyaaemtggtgriolrelbeigogeanair.teeeFcinoonirgtsroniinpinstziiieoccdnvvsaealeuluaxeetewerwacdtiassosab6$nl61oe1n9a-9.tvested sockoptionbas awards, Thisexpense expected 0 be rcogpized verUe remainingweighted.average vestingprodof 7yeas. million. As of December 31, 2010, there was $65 million of compensation expense that has yet to be recognized related to non-vested stock option-based awards. This expense is expected to be recognized over the remaining weighted-average vesting period of 1.7 years. "$TTh1he0e7ttoomttiaallllionntrr.iinnCssaiescvhvaalrleuuceeessiovofefdsstftoorccokkmaooppptttiiooonnnssseexxxeeerrrcciiissseedddddduuurrriiinnnggg22200011100,,, 222000000999aaannnddd 22200000808,,, rrreeessspppeeecctctiitvvieevlleyy,,,wwwaaasss$$S22366731mmiillilliliiononn,,,$$$311400588mmmiilillllloiioonnnaaannnddd 2S$$011118080788,mmm2i0iilll0llliio9oonann.n..TCTdh2haees0hC0C,oroemmcreeppisvaapenencdyty'fisrvosaecmclttyuu,oaalpwltatiuasoxxnb$sbe9nee3enxhmeeiifrlitctlsisisoerrnede,asdliSiuzz3ree8iddnmgffiool2rrlt0it1hho0neta,t2nax0xd0d$d9ee3dda4uunccmdtitii2loo0lnno0ssn8.rr,elrCleatastpepeiddetcattloiivttzehheleeyds,eeowxcexarskcei$bs5eao7rso1fefcedmemcmipiolllpmioplsooeynyne,eese$ea3tss4itt5ooonccmkkaimoololppiutotiinnootnnasssnwdffooerrre o20t1m0a,t2er0i0a9lfanrdt2h0e0t8e,lrevsepmecotivneslye, wndased$29031m0,il2li0o0n9, a$n3d8 2m0i0ll8io.n and $34 million. Capitalized stock-based compensation amounts were not material for the twelve months ended 2010, 2009 and 2008. Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ante 103/114 11775588..00110033 nsaota Mig ns coheedda TADIOOIBSEHOOTAS1-2080_HOkMo 1/1"(T3TCh/h2oee0m1CCp8oaomnmypphaaannyyhddiosoteeossrninocoattllhhyaavvmeeadaessappdeheectctiqpiffusii:acc//twppewooliwliis.ccscyyercett.otogiroroeevnp/pAiuurrrcrycchhhipvaauessrseec/echcdaoogsmamersm/m,dobaotanans/6sse6hhd7aao4rree0nss/0ct0oao0s1imh10iat4vigaa6i5al9tea1b1ttih0hl0eet7ydd8i4iml5uau/traiivk1vee1t-i2im0t6rp0mean_cd1tps1o0oafknfa.hoopotpmtctieioontrnss;;fbhocowwreevv,eersr,,atthhieesfy tock option exercise activity. Company has historically made stock option exercise activity. adequate discretionary purchases, based on cash availability, market trends and other factors, to satisfy opFFtooirroaannnunprauilacliaannngddmopprdrooegglrreeasssnsiidvveeth((erleaoloeaadud)m)ooppptttiiioononstsn,h,atstthheefwowellieogiwgh.htteedd aavveerraaggeeffiarirvvaalluuee aatttthheddaeteooffggrraannttwwaass ccaallccuullaatteedd ussiinngg tthhee BBllaacckk--SScchhoolleess option-pricing model and the assumptions that follow. SSttoocckkOOptpitoionn AAssssuummppttiioonnss ExREexriecriscisseeeppirrniitccreeestrte VDRDoiiivslvkiiad-dfeeirnneydde yieldinterest yield rate BVEElxaxopcpleakect-citSltieectyddhoililffees(f(mmioornntvhtasl))ue Black-Scholes fair value po Proprtv issn Annual Progressive (Reload) 2010 2009 2008 2010 2009 2008 ST mms snusmms Wms mms ww $ 78.72 $ 54.11 $ 77.22 $ 86.72 $ 77.83 $ 79.76 28% 22% 31% 06% Lav am 2.8% 2.2% 3.1% 0.6% 1.4% 4.3% 25% 23% 20% 25% 20% 20% 2.5% 2.3% 2.0% 2.5% 2.0% 2.0% mj am mam dm 1mm 25.7% 30.3 % 21.7% 33.2% 30.7% 18.7% 7 7 ii} 17 2 bY 72 71 70 17 32 25 Fo cl -- -- -- i -- $ 16.50 $ 13.00 $ 15.28 $ 12.01 $ 14.47 $ 12.00 E2Ex0xp0pe9ecactnteddv2v0oo0ll8astalilntintyyuiiasslagrssaatatntitissditiaccatal,lmtmeeeaasCsuourrmepooaffntthyheeessamtmiomouauntntetdbbyeywxwhpihecichchtasesodtocvcokklpaprtiirliccieteyiibsaeesxxeppdeeccuttpeeoddnttotohffellauuvccettuurasattgeeedduoufrrtiihnneggmaoppsertriioded.s.eFFoorrottvhheeey22a0011r00,, vVO2Fo0ol03a9ltMislaiitnto,ydc, k2tthh,0eea0m8mnedadenditniahauennaoilomfgfptrtlahhineetdttvdeeorarlmmtaet,oiotflhfitetthhyeCeoeonexmxpptpeecahcnttgyeeaddensfltitfieemdrrtaootl.ellldiiTnntghghveeveooexlxplapteietclcittt,yee,ddhtthveeeomlmmateaieldsitsiyaudnmbopaoiftsfiettnodhhneumipmoobosnaststtrhereeedccaeoevnnntettehrateegrmwemeoioofgffththttheheemdeexoxapsvpteeecrrcetatceegeddeonlftfifeoehnivvesotyooleariatlicrlaillty ans. of 3M stock, grants. and the implied volatility on the grant date. The expected term assumption is based on the weighted average of historical [112 TTablebooffCCloonntteeentss "TThhee ffoolllloowwiinngg taabblleessuummmamrairzizeessrreessttrriicctteeddssttoocckk aanndd rreessttrriicctteeddssotoeck unniittaaccttiivviittyydduuririnnggtthheettwweellvveemmaonithsseennddeeddDDeecceemmbbeerr 3311:: RReessttrriicctteeddSSttoocckk aanndd RReessttrriicctteedd SSttoocckk UUnniittss _ N`oAAnssvGeoorsfaftnelJtdaaenmbduaa:alrrayync1|e -- G"PrAAaenrmntfneaodulr:aml anceshares Performance VOesbteedr Other shares AFsoaVFrofferseDftieeetidcteeeddmber31 As of December 31 a SN Number of Awards 2010 Grant Date Fair Value* mam sess 4,379,480 $ 68.85 ns 902,549 760645 760,645 sa 527,823 ou23) (948,233) 36) (48,962) Emam 5 5,573,302 $ ma 78.81 79 73.99 7s 79.56 ma 79.12 69.57 me 70.43 we Number of as ENG Awards 2009 Grant Date Fair Value* ww 2008 Number of Grant Date Dn SRE Awards Fair Value* 20s Ss Tal 200s STE 2,957,538 $ 77.41 2,001,581 $ 77.63 Lisomo ss 0 na 1,150,819 53.89 924,120 77.23 = = fl 2 .... sss sm wan 716 522,581 54.82 188,473 73.16 (0) Bas Ge 82 (157,104) 73.26 (64,806) 68.72 _ ous) es own mi (94,354) 69.57 (91,830) 77.76 spam Sess aps mial 4,379,480 $ 68.85 2,957,538 $ 77.41 * WWeeiigghhtteedd aavveerraaggee AArsesstoorfifcDDteeedccesetmmobcbekerra3n31d1,,r22es00t11r00i,c,tttehhdeesrreocwwkaassnS$i11s00.11Thmmisilliieoxnploeofnfslcceooimsmeippxeenpnosesacatttniieoodnn eexxbppeeennessceeottghhaaaittzheeasds oyyevetetttoohbbeerrreeemccaooiggnnniiinzzgeewdderrielglathtteeddd-ttaoovnoeornnae-gvesevseitseetding perpDreeesirticrooicdedtoemofdfb1s1et.88orycyk3e1eaa,2rn0s1d.0aT,rTh2ehes0ret0rtti9ooc.atttaeanldldff2siati0rorcv0vka,aurlluneueisotsopf.ferTrecehstsittsirriveicxietepewlddeeysnss,tst$oeoc7cikks5ameanxnidpdlerrceoetsse,ttdrrSiitcco1tte0ebddesistrtleooclccokokguunnniaizittesnsdttSdhho4aavttmevvireletlshsitteoeenddr.eTddmuhiariinnnCigontmgthhpweatetnwwiygee'hllstvveeedc---mmaaovolnentrtahhagpxpeebervreiieoonsddtiessncfgeonddeedd Dremedaeaitclizrezmeaedldbeffforoorr3rt12h,te2tht00aae1xn0dd,0dee2dd20u0u09c0c9t8ti.iaoonnndss related 0 he vestingofrestricted tock and restricted stock uits was 20 milion 2008, respectively, was $75 million, $10 million and $4 million. The Company's a related to the vesting of restricted stock and restricted stock units was $20 million for 2010 ctual tax for 2010 and was benefits and was nookt material for 2009 and 2008. aRRseesssuttrmiiictnteegddcossnttotoccikknuuuneindtitssemggprlaonyrtemdeuruntan.ddeTerrhtnethheeo"de"33.MM 220000"88bLuLyooonnuggt"-TTeeesrtmnriIIntneccdennsittivvoeeckPPullaannnt""gggreeannneterraall2lly0yv0ve7esvstettshhtrrseeeeayyetehaaeressnffodolllooflfwoiivnwegitntyhheegeagrrg,aranRntetsddttaritcected Hqastsouoscacuklkmutiontnnhiegitgcgrdorainanvnttiitsnsdusieesndseduesedmpdapiiynlnoa22by00lm0e0e88cnantan.ntTddhhpeprerisiooomrnreedd-iitndidmnoeuott"abmacucceybrouuseeht"ddiiirrrvveiisdodtoreefinnc3ddtfeMssddusucrtriooicnnmkggmuothhnneeistvvtgeeorssacttnkiintnsggicnprpe2uere0rii0oood7dn..vtBBeheseegtgsieinnarntneitishnnteggrieiicnnntde22d00os00ft99of,,icvddkeuiivyvniieiddateersnsn.dddRueeqqenusuigtirvviacahlteleeendnttss vvdeeaqestsuet,taiilnnDgtgiopvprtiehdireieoondd,di,vssaiadllrttehhnpooduuisgghdphaonyuoatbddlieivvcoiidandseetnhnhddeaeestqaquhmiuvveiasnlveutnmdatasblteaaeerrraeenopnpftaaasisdhldavrooeensstaaoennfdyyo3roMfefstttcrhhoieecmstseemdrrsoeeossnttcrrsiiktccottcenekddiassscto.occcSrkukieunuonneniittssthhttehhrsaaiettgraahetrressttrffoiocdrrtifeeevdiietdesdtedonpcpdkrsiiousrnrtrtiootsftohdhreuevsreivisnaetbgsilttienhn,geg. date. Dividends are paid out in cash at the vest date on all vested restricted stock units. Since the rights to dividends are forfeitable, MossolAiveslodpa GasGETAC HESBHIOOTASA-2080_HOk en https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm Tounse 104/114 11775588..00110044 zane Migsohcivesadg Gat OTIOOIOUSEHIAIO2O08T0_AHOSk hom 1/13/2018 https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 11-2060_110k.htm ere no impactonbasic caning persharecalulaton. Weighted avcrage restricted stock unitshares outstandingar included in there is no impact on basic earnings per share calculations. Weighted average restricted stock unit shares outstanding are included in te computationof ied camings pe shire. the computation of diluted earnings per share. GeneraEmployees"Stock PurchasePla (GESP): General Employees" Stock Purchase Plan (GESPP): eInliMMgiabalyye191to99p97a7,n,sishchiaaprracethheoolliddneerrhsse sapppappnrr.oovvPeedda33r00tmmiiillclliooiannrsphsghaararnareenstsfefsodoorpiitsssisuouanansnccaeetnu8n5ed%erorttfhhmeaCCrokomempapvnaanyluy'e'ss aGGtEEtSShPePRPd..aSStuuobbfssgttraaannnttti.ailalTylhalaelyrleeemrmpepnlloooyyeGeesEsSaarPreeP s eligible to participate in the plan. Participants are granted options at 85% of market value at the hbausrienseusnsddearyoopfttihone smteh bmeognitnhingor cn ofeach yearbecauseoptionsaregrantedonthe fist shares under option at the beginning or end of each year because options are granted on the first busissday snd cxcrssedante date of grant. There are no GESPP business day and exercised on the ast last business day of the same month. Genera Employees' Stock Purchase Plan General Employees' Stock Purchase Plan sme 0 00 2010 2009 2008 O`OSOOpphttppaiirttoiieooonsnnnssssavegexarxreiaaerannrcbcttieliessdeedefddor gant -- December31 Shares available December 31 for grant -- Shares THANE 1,325,579 azssm (1,325,579) 330 4,334,360 Exercise Price* M FT E $ 70.57 8 70.57 Exercise Shares Price* lesa 5 0s 1,655,936 $ 50.58 (65593) 5088 (1,655,936) 50.58 5659939 5,659,939 Exercise Shares Price* leas5 as 1,624,775 $ 62.68 (624719 a (1,624,775) 62.68 2315878 7,315,875 + * WWeeiigghhtteedd aavveerraaggee "VTThahelewiweoiefiggGhhEtteeSddP-aPavvoeperrtaaiggoeenfsfawuirar vsvbalauaseeppldeeorrnouoptpthiteieoonn1gg5rr%aapntteeuddddururriipcnnrggi2h2c0e0110ad0,i,ssc22o00u00en99t.aaTnndhd e22C00o00m88pwwaaanssy$$r11e22.c.44o55g,,nSi$8z8.e99d33caaonnmddpe1$n11s.1a0.t06i6o,,nrreeessxpppeeeccnttisiveveefllyoy.rTTGhEheSe SifPari.r ovaplute oiofofG$nE1Ss7PPmiolplitioonnisnw20a1s0b,as1e5d omnilthieon15in%2p0u0r9chaansdeSp1r8icmeildlisiconouinnt.20T0h8e Company recognized compensation expense for GESSP options of $17 million in 2010, $15 million in 2009 and $18 million in 2008. m113 `TabTleoofifCCoolnetesen.ts NOTE 17. Busines Segments NOTE 17. Business Segments gfErefofcewtctithivvebeyiinnlttihhneiffniigrssttbquqsuuiaanrietseesreoosff2a20r01o10u0,n,d33mMMarmkmaeatddseecaecernrttaaciuinnstpporrmooeddruuscc.ttTmmhoeovrveeesswbbeeetstwweieeoenCnfhiastsnbgbueusssiinineesssmsseeggmpmebenantastssiicinnscistssctceoognnmtetiiinnntuusiinnnlggeetgffffdoorrttfot0opddroiridvvueect msmgeoroogvvwmeeestshnfftbooryrThthahleeeipgrHHnoeiendaalgultctbhhtCumCsroianevreeessssseeebggsemmaternewotneu,te,nndCCobmunasosriuknmeentsesrsaaaennsngdddmOceOuunffstftsioccmmeasreseereegsgs.mmueTmnrehmtnea,tr,reDDiwiziseesprdlelaasnyysoafaconnlhddlaoGGnwrsgra:eapsphhiimiccsspassceetgignmmgeebnnut,tsooi,nreEFsslleesceetrgromaanendndtsCCoroemmlmautmenduinctoiactpairtiooodnnussct segment. The product moves between business segments are summarized as follows: + CSCeeecrutrraiaintyaaacconoudusstPtiriccotsseyycsstttieeomnmssSepprrrvooiddcuueccsttssbuinnstitnhheeessOOcsccecugupmpaeatntitioo)nnawalleHHreaetlarltathhnssafnnedrdrEEednnvv0iirrtoohnnemmAeeunntttaoalmloSStaaiffveeettyyDDDiivivviiisssoioonnnw((iaptrahirttnooftfhtethheIendSSuaasfftetrtiyya,,l and `TTSOrercaaccnnuussrpppiaototryirtatoaannttaidioloPnnHrebboauutlesstciihntnieaoesnnssdSsseeEgernvmvinicerentostn.bmInuensnaiatndaeddlsisotSiaosf,eneg,tmttyhheeDenrirtmmv)aiawlsleocarnceooatursusaatnitcsrfseesysruyrlsetsdtoieftmos3stph'prersoodAdAuuupctcrtoitssmlwwo2ht0ihi0vci8cehahqDwwuieiversrieseiitoiiinnnoccwnlluouidtdfheediAdnicinthnshtteehoIenHdoulsdtirniagl and `OCbCuocosrcirpunp.pewwsaestesiroreeengattmrlreaaHnnnssteffa.eelrrTtrhrheeeaddsnotedtohpEtrhnoevdAiAurccoetrnroommssopepvnaaectacsel aasSnnaaddbfelAAtiyisrrDhcricaavnfitssMiMoanaiicanestneanscoraneencnscuteeuDeltrDeopoeffsap3raeMtxrtcmtm'eselenlAnetctpnwcwriieltith2whi0iinnt0h8ttihnaeectIIqnneuddiuIsusnitstdrtiuirosainatlrlaoianafnldAsdneTTdarrraaoTnnrsHsapponoosrldrpttoiaanrttgtiioaontnion InbbbduuuussssiiitnnnreeeisssasslssseeeagggnmmmeTeenrnntattn...sTTTphohhreeetpsapertreiepcocrenoe,dddiwiunnhcggitpcmprhrooowdvdaueucssctteosmmftofaosvbveelteisssbehyreaaasnculoalrtcerodeuisispnntiocaanndcieiinnnngccterrederaaeosscfeereeiixnacsneeeletlitessnnalclteessswflfoioethrstitonoftotatarhlleSyyaeIefnaadtrruy22s,00trS00ie9a9ocluoafrfniS$td1y11sT16nr6amdmnilsiplliloiorontnaftoifoornr Protection Services. Industrial and Transportation, Protection Services. which was offset by a corresponding decrease in net sales for Safety, Security and s33eVMr'v'siscbbesu.usi3nsMesisceosnnartereienosorurggestaaosnniemizzeaesddn,,ammgaatnnsagaoepgdereaaanntddioiinnnsteemirnanliallxylyogpgrerorouautppieenddgbniunsotiosnseeesggsmmesenentgtsmsbebnaatsssee:dnoodnnusfdrieifrfaeelrneancncedessTriinannppsrproodrotuaccttsiso,ntt;eecHchlnhotnloholgCioeagsriean,endsd bDsDeuirssvipiilncaessysas.ans3npedMdgGmGlrcearonapnatphtshiinicbycusrse;i;snCCgtoootnnomsgseuautnmmhaeeegrrrecaaonintsdmdomOOpoffefnricacote;i;onSSeasalffaeientttyeys,d,ixS3SeMoeccpuuretirreitactytyhiannaongnldodbguPiPserrisoon,tteeescccsattihisoaoennngcmSSieeenrrngvvtiistcc:eehsIsn;;ddaaunnesddtFrvEliaelelecctaltrnrodooTaafnnpraddinmmCCsopooevommamrnttumainttuviioencniacp;traHiotiodeonuancslstt.h.s3CaMMna'dr'sess;sseiirxxvices aTbaninunddssip,nprero3osvsvMiidsdeiiignnnmggofetfonodtrefseipbfcferiiicnneigdennettotonsgsnthhetuaharseiinyrggscoioofnmfgbbmluuesosipinnnreeoossdrssurrcereetlsassotoeeuurdrvrcci3eecMsse.. otTTerhhcemheassnreeoklsseoetegg.gimmeCesern,natetssinhnhhaaansvvmceeaiwnlwolgorbtrlhluddeswwdiiienddveeeesrlresoespspapmonondesnniJssubtibibpolifiloititsynynoffooorvrraevvtiidivrrteauplaprllorlodyyduaauclltcllts33sMsMawnppedrrlsooleddruuavc.citctes lines. 3M is not dependent on any single product/service Vraercioorudsecdosrtpcoorsta.t asst and expense, ae not are various corporate assets and expenses, are not attributed tothebusiness semen. Transactions amonreportable segmentsare or market. Certain small businesses and lab-sponsored products, as well to the business segments. Transactions among reportable segments are as recorded at cost. "pTTrhheeeseffniintneaadnn.cciiaall iinnffoorrmmaattiioonn pprreesseenntteedd hbeerreinn rreefflleeccttss tthhee iimmppaacctt ofaflalll oofftthhee pprecredinegsseegcgmmeenenttssttdrruuccttiuurreecnchhaanngggeess fforaoalll ppeerriiooddss. presented. Business Segment Products Business Segment Products Pigs eihciesodgr Go ADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm osnte 105/114 7175588..00110055 zane 1/13/2018 Bos seme Business Segment InduansdTtranrspioraatilon Industrial and Transportation Health Care Health Care Display andGraphics Display and Graphics CCoonnssuummeerrsanndd OOffffiiccee SSaaPffreeottye,cSSteiecocunruiSritetyyravainncddes Protection Services ElEelcetctrroo aannddCCoommmumnuinciactaitioonnss Migsohcivesadg Got OTIOOIOUSEHAII.2O08O0_THOAk hSom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm Tapes, costedind porwove Shrasves, desM Moriajrsor,Psrsopdeusccitasl marl, IFSton roducts lore saTsbyyrasapntseeismso,nscoffroaoertsrpeipedsertarassnnoodtnnfanailollnmhhswyy,ggosiivteeraenunecptarpuborroradadlusauicdvcthtese,s,s,aaiaccvdooehssuetassitniivccdsespsyya,ssistnepetemmcssirapplirtrsyooiddmunucagcttatessnr,,diaaadluuset,ooafomliltiotrnitaigvvtiepornccooopdmmuropcpdotosunn,ccetansnt,tesscr,,lgoysure c`acMoobenttnrairtrscooialollpnpr-arornoeddsusuicsucttrtassgnitcfaillslsp,psltirucc,tsurianl hadehaetshivaensdanindfpecatiniotnf'meisvheinngtaonpdrdodeutacitlisn,gdprruogdduelctisv,eernyeyrgsytens, dOM depententidatcailacllaaalnnfaddmnoodsrrtstshuooorldgduotioncintaotnliiccspupfrproopordldcuiuelcstec,scts,st,krbhineneiaaclhltedthhiasliitpnnhlffaoaoynrrsm,dmaraietntfiifoloeennccsttsiyiyovssnettseephmmreesseavteaninnnddtgifoffonoooopddrtsorsadaafnufesetcptytyosp,rprtdroaortdudiuguocncdtstessflivte,ry systems, Optical fills solutions for electronic displays, reflective sheeting for transportation safety, tceocmhmneorlcoigayl, vgirsauaplhiscyssytsetmesmasn,dacnodmpaubtielrpnrcivraaccytfvielesrosutons, includingmobil display commercial graphics systems, and mobile interactive solutions, including mobile display i`ntSSedppceoohxnnngigoenelsgos,,gsyyscsc,ootvuueirsrmiuinsnag,glpcspoayandsdsstste,,umhchistiggiahhon-n-dppaeecnrrodffmoohrrpmomumaatneencrcieepmcrpcilvlrooatotchhvysse,,fmccielootnennrtssspuumrmeoerdaaunncdd,oohfffofiimcceeectaaappreeessp,,rrreeoppdooussicitio,onpnraaobbtleleectnnioevetses,, Pmeamitrneadsrteoeixrnaiinlaalglppprsrryooodstdtueeuccmctttissso,,,nacanopnndrscoctorodunncssstuu,iommsnaeefrarenatadnyndadhnooomfdfffseiicccieemattaaprppreyoesvspaeranmondddeuanacdtdtephsrs,eoiscdivovuemecsmstse,rhcoimalecclaeraenipnrogadnucdtsp,rpotroectetcitoinve papP5rreoorbdsdrouuanccratsyl,,ppfaorltooortoreorcmnmtaioeatntiftipnncrg,oh,edrrcuookcoootfsfuii,ntnsgsgagyfgrserattaynenumaulsnleeds(sfssfeuoocprrpuaalrsiystppyshhahpalriltotnsdshhueixicnnetgcgslu,leetcsiso,o,mnuannmsdoeTfTrrcvraiaaaccrlkkecaslaneondaldnuTtiTrniargoacncaesenpspdorrploorddoicutncestc,st,isosunucchh PJJaausucnnkleieab22gr0a0i0r0ny88g)p)aatdroninskeelrfc-acnhneeccktioountdseyvsitceemss, (isnusuplpaltyincghanindesxpelciucitinognsoslouftswonasrefsoorltuhtieonlsescotldoirn , tePlaecckoamgminugniancdtiiontnesrcnondneelcetcitornicdaleviincdeuss,tirniseus,laatinndgoauncdhsspclriceienngsasonldutioouncshfomornthiteoerlsectronics, telecommunications and electrical industries, and touch screens and touch monitors 4114 `TTiabblleeooffCCoomnteensts: BusinessSegment Information Business Segment Information o_I(Mmndilulei_sotnrs)a_l _Tan_por_ati_on _ Industrial and Transportation HDeiasplltayCaarnedGraphics Health Care SCDCaofonisensptsuluyammySeeearcrnuadarnniGdtdyOrOafapffnhifdiciccees ElSPeracPfoettrtroeyotc,etScaitenoicdonunCSroieStmyrevmraviancincdee'ssetions EClECoirlomepricpontorraoratatiateenondaannCoddfoUDUmnuanmalalulllCnooriccceaaadtttieietoddns To Company Elimination of Dual Credit Total Company m0 2010 $888,581 asm 4,521 ass 3,884 3s 3,853 awe 3,308 am 2,922 59 wo (416) mee $ 26,662 Netsur Net Sales we mm 2009 2008 723% 5 89 $ 7,232 $ 8,294 as 0 4,294 4,303 sms 3,132 3,268 sa a 3,471 3,578 ee 3,064 ame 2,276 1212 asm (358) Tm 5 $ 23,123 $ aan 3,330 ws 2,835 222 as(361) Baw 25,269 Opera tsome Operating Income mm we me 2010 2009 2008 5 1@ 5 129 5 158 $ 1,799 $ 1,259 $ 1,568 13a 1350 is 1,364 1,350 1,175 46 0 Eo 946 590 583 so us on 840 748 683 07707 @631 am (277) )(92) 5S $ 5,918 74724 32322 am (100) a9(79) 34g $ 4,814 @689 0540 559 J)(79) 55am $ 5,218 Io_(Mnmidll_ieornsa)__Tr_ans_por_aio_n Industrial and Transportation HDeiasplltayCaarnedGraphics Health Care SCDCaofonisensptsuluyammySeeearcrnaudarnniGdtdyOrOafapffnhifdiciccees SBaPlPfreeortctoyert,ecoStcmiteiodconuCnSroieSmtyremvruavinncicideecssations Electro and Communications TCoomaerCsoempaanndyUnallocated Corporate and Unallocated Total Company We Aue m 2010 3 6813 5 6415635 6,813 40 328 36 4,190 Im 3s see 3,729 Lu me ms 2,149 Assets 2009 $ 6,441 3,218 3,564 1,819 2008 $ 6,373 3,096 3,479 1,815 ams a6 3m 3,995 2035 2067 2186 2,135 _ 7,45 _ 6935 S717 7,145 SI0i% $3250 $3598 $ 30,156 3,206 2,067 6,935 $ 27,250 3,127 2,186 5,717 $ 25,793 best Aeeintes_ ___Coptlbpmtiars Depreciation & Amortization mime de mn meme 2010 2009 2008 5 WI SWI WF WI 23ST IB $ 331 $ 333 $ 288 1 18 Me mW bs Ie 131 143 146 we 20 ws le 30 187 174 220 ws 0m oe Bw 100 88 79 Capital Expenditures 2010 2009 2008 $ 343 $ 235 $ 355 78 125 169 185 160 305 69 43 87 1a9688% _ _L11m900677 $ 1,120 $ 19 wm 810 169 12 11% @ 18 102 lag _ 146 _ 188 _ 157 _ 305 148 Lis SLiB 54m 5908 5 Lan 1,157 $ 147 127 146 1,153 $ 130 98 188 1,091 $ 93 60 187 903 $ 107 143 305 1,471 CcCeorrotprapoiornradatteeeraaanntddivUUenngaalallilonocscaatateenddaolpopesersretasit,inngiginsinnuccrooamnmceeeiiennccalluddegsaainvvsaarriaienettyyoloofsfmsmeissi,cscecleelrlltaaannieneooluuisgsaiftteismon,sa,ssnucdchehnaavsicrcooornrppmoeornraatttaeliinnevxvepesestntmmseeensnt,tgcogariapninossraaantneddlloosssseess,, reorcseettsrrttrouaucinctatuludlreroiircnniagvgtcaehctdihaviarergrggeetassiynaasnndadfnccdseerbrltotuaassiisnineunsune,ndsidenserseru-groaomrnreoconvevet-err.er-B-laaaebbtcessadaourrgsbbaeeoitddncsicooasssntctsdastl(eoeeg.s.gsoge.rpspy,eencnnsesciriotodann,ien,ssslttiootaivccgakkar-btibiaoeasntsyeeaddnodfccoomemminpsvpecnieresnoalsntaamiteiooeonnnu)t)satlhhaeeatxmttpsthhe,eneCsiCeotsosm,mpcsuopabranjpneoyycrmtamt1yeaycchhoooosese: Pnucottutoatailoloncoante a quarryand aamalbass. directly to its business segments. Because this category includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis. `33MMaWnbbauugsiseinmneeesnssstsseeevggamlmeueantntetrsreeeppaoocrrhttoiinnfggmmeasesiausxruperesesrnitniucnldugdebeusddiuunalelsccsrsreeeddigittmtfeoonbbtuusssibinnaeesssessdsoseeggnmmeeennsttasslfefosoranecderrotaapiennrUaUtS.iS.n.sgislanelecssoaamnneddprereerllfaatoteemddaoonppceerera,attiinnncggluiicnniccnoogm.mee.. Management evaluates each of its six operating business segments based on net sales and operating income performance, including Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ante 106/114 11775588..00110066 zane 1/13/2018 Migsohcivesadg OGoTt IOOIOUSEHIAOI11O-2200T8600A__1H1SO0kk.hhtomm sddeulgaml cecrrneetddiistteUlUl..iSSn.g.rreeppprooordrtutiicnntggsttioonftfhurerthUehe.ttrSp.nisn:c/oc/eweannwnitwivv.esiixezztce.egUmoa.vSlU./S.A.scrsclahuelievsssegsg/trerodowgwwahtrh./ed.nAaAtsatsh/6aa6t7rsse4esu0ug/l0mlt0,e,0n331tMM10np4pr6oro5ov9vi1idt1dhe0ees0sa7pa8drd4di5dim/taiatroioynsnaeallll(("ddouufaallt"h))ccprrereddioittdtoo.tthhFoorsseeebbxuausmsipinnleeess,ss CcsPeeerrgortttmaaeiicenntnrirteoessnspspiSeirleralaritntovogrircspseraorrbdeupupscrirtisnmeiiansrmitslhyeeagssUomorle.lSddnbi.tbtyylohtothayhweneeveOOexcrctce,curupntpahaateltici[ooudnnusaastloltmrHHieeaearlallwtathhnhdTeaanrnnaddthnEEasnvtpvrsoeiorrgnoamnmtmeienonetncniatsbalulnsoSSitanaetffhestetsyypsDDreiigimvvmiiaessrniiyotonnsaewwllilsiettrhhsiiolnnfsttthhheeehipSSsaprafofreedtotuyyd,c,utSS.ceeFccofuuorrriciettxyyraaumannpddle, ccPcruuresosdtttioeotmcmfteieoorrrsnsthiiSnenetiratvsssiscUUo.ec.SsSi.ab.tummesadairnrnkkeeestetstsss.s.leIIgsnnmthihteiinssnti;xetxhaaaotmmewpdpealvlne,ed,rt,thhttehenhenooIennnld-apputrrsemitdmraiaaraplrypyarsnsoldexiliTlnimrngaagntsesseopegpgomemrrteaeantntitoitnn((gIIbnnidudnusucsiostnrtmerieisaa.sll saaTennhgddemaTTserrsnaaitnngsasnplpsoeoordratsoatetililoopsnnt))heiwwsoopruiurlnolddcadouaamllctssetootorrieeelcccaeeentriitevvadeegi0n ddcdruuaeaaldlcicctrrrefeeodddriiitttthbaaeucstaicisvnsieottyscmsimaaistaeyeydgvdmdnieiefifnftfteesrratfrlefoerpsoymomrittiioonnppgieteirsraaatrtetiiednnfggalniiendncccttohoaememdeerettlhharaattetwdwoeauopulcplddrorrxoeeistsmuuelnalmtttfeefnrocotoipmteliareacadcttti"luunEaagllliiiccnmoocissonnttmassteaaigs.sossTnooohccieifaaDatteseudsdswig]wintiCethrhdessoduuipcctehh"rassstailunlcesghs..iTtnThhcaheoteomsfoleffesfrsseeetlatantt1oetddhthteoe operatingincomefor heUS.inttl are dual credit business segment reporting is operating income for the U.S. in total are changed. reflected as unchanged. a reconciling item entitled "Elimination of Dual Credit," such that sales and 3T3hMMeriesfoaarnne,nincmtepagrnrtaaegteeddmeeennnettrerpdprorsieseenccthhareraapcrrteesraeizncetdtbthbayeytsrsfuubsisbbtszuatasnntieintiaedalslsiinsnttoerrrssetggsmme,enntt cocopooeoprpeaertraeatdtiiioonnnd,,ecpcoeosnstdteaanlltlollcyo,actwiaootnuislaoadnnndrsdoiinnrvveennhttoorroyyptterrraaanntssfifenergrss.i.norne snd teToxhthhpeeeerrrnesfffeoiin,nraeawnn,hccmiiiaacallhniiannafgfeoeormrmnmoaettnaittaiooldnlnoosecshsahotnoewowdntnt.r.oebTTpuhrhseeeisneddeniisftffsftehsrraeetnngcciteesbbb.eeuttswwieneSeeensnsmoosepptgeemrraouetpiinenntrggsia,nitnicifconoorgpmienercaaaotnnemdddeippnardeene-d-tpaaeixsnnsdineeccsnotoilmynm,etwhrreeollpuartlseedscrete1od0pioiinnrgntteeatrhbreelstteoiipinnenccrcoaolmtmuiedneegaaainnlnddlcooincnmaetteeriroseanstnstd srreeeexsgspuumellentiinsnnetgg,dewffrprohromiemcchitthahaeetriessohhnnaao,rrtaeeaddmlluuooticilrlaiztzteaadttiiotooznnbaaooufntcfsdeicicnreaetrosptaasiniitnns,aeccgooemrrxppepoonernrtasadt.tieetSuooerrrgemaosttehahneretrbrwowapissseeeeraduutnnionaanlglllsoioenccccaaoottneemdddaeraayasssnpsedet.sra.sfHHsoeoomtwswaeienvnvecetrehr,,emthephearesesecsueperpaderaisnaruagtsteeetaadabmbmloeyouiunnmntcatslsnusadstgteaaetaiemlddleofnfcootarrthioants donot cludeallocationsof ceracorporeamst. segment depreciation, amortization, and capital expenditures do not include allocations of certain corporate items. are based on secondary performance measures used by management that i`SSneevgqempnnteenontrtyaasspsrseottpserofotryr,ttphhaeenaotppeaerrnaadtiinneggqubbiuupssmiinenenestss--sseegegmmteenngttsso(eeoxxccdhluddaiinnndggiCnCotroapnrpgoiorbraaltteeeasnasndtdsUU;alnlanlcloaacttaeetedrd)m)piprsriicmmeaarlrilylyianinncclealuusoddseueatsac.cccoAousunsntetssseircencicelviuavdabebldleei;;n CtiCnoaovrxrepepnosortorcaaerttyreet;aaapinnrnoddipUUnenvrnaetaylsll,tlomopceelaanatntteestdsdannppddirinoneitcqphiueaprliapllalmyysaseaenrtetc,-ac-isannhsceh,lt,;uccdgaaiossnohhgdeewqqiuluilviaanvledaniltnsetaaannnntgddibmmalearrkakesetstaeabtbsll;eeassneedccuuorritihttieieerssm;; iiinsncssueulrrlaaannncceeeourreesccaeesiivsveaatbbsll.eeAss;sddseeetffseerirrneecddluiidnneccdoomimnee taxes; certain investments and other assets, including ns 115 `TTiabblleeooffCCoomnteensts: pmprareerppkaeaitiddapbpelenenssseiicoounnriaatssisseeest,tscs.hCCaoornprgpoeorsaratteraaennpddauuinndaalpllleoonccsaaitteoedndbaasesssneeetssfcc,aannanccdhhaacnnhggaenegferrsooimmntyyheeeaarr1t0ouynyeaelaalroddcuauteetdocschehaatnngcgeaestseiginnocrciaaesssh.h,, ccaasshheqeuqiuvivaalleennttss ndand marketable securities, changes in prepaid pension benefits, and changes in other unallocated asset categories. "TcThuheesmsmoisoosttnsioifngrinefisfiticcraunnctttuittreeimmnsgsiaimmcptpisaocnctstiinangn2d200e0x0i99taacnniddvi2200c00s88.reressuullttsswweeerereressttrruuccttuurriinnggaatcitoionnssaanndd xiexitaaccttiivviittieess..RRefefeerrttoo NNoottee 44 ffoorr discussion of restructuring actions and exit activities. NOTE 15. Geographic Aress NOTE 18. Geographic Areas cGGereteoagirnoapihgncicormarreceaaaniipndnfefoxohrprmmeaintaisticoeonntiiesmussseerddebbgyeyntthehereaClColomymprepapanonryyteaads wasisteehccioonntndhdaeargryyepopegerrrffaooprrhmmiaacnnaccreeemamewahesaeusrurerte thtoommfainananlaasggele sittssb1b0uuss3iiMncneusesssetsso.EmExexprposortrrtessamalaleedsseaa.nndd certain income and expense items are generally reported within the geographic area where the final sales to 3M customers are made. Unt(MietilleniodnssS) ates EAUAsusniriiaatoePpPdaa,cScMiitiffaiditccedsl Eastand ELa`utAArifonfrpriAiecc,aaMmidedlsernEdaiCstacannadada "OLOTtatohhtieaenrrCAUUonmmnaapellralliocnocasyatateenddd Canada Total Company TE Nasu E E Opstepe tacms Pirperos Paes sad 2010 $a 585 5 009 16% 5 Le 5 L5H 5 388 5 380 $ 9,210 825 60 63 24m L816 Les 136 8,259 Net Sales 2009 $ 8,509 6,120 2008 $ 9,179 6,423 Operating Income 2010 2009 2008 $ 1,636 $ 1,640 $ 1,578 2,400 1,528 1,662 Property, Plant and Equipment - net 2010 2009 $ 3,888 $ 3,809 1,605 1,366 629 som 6,259 5,972 29 asic 2,950 2,516 19 5 (16) 6 $Hen STB $ 26,662 $ 23,123 ee 6,941 2m 2,723 33 326 3 $ 25,269 $ am 108 1,112 wel 797 ep un (27) EB 5 apd 3 5,918 $ 1,003 631 12 4,814 $ 1294 1,294 es693 (9) 5a8 5 5,218 $ 129 131 1,239 sso 547 -- -- -7p 5 Tom 7,279 $ 1,318 507 -- 7,000 RrReseetssrturtuctrcutuurricinntggauaanrnnddidceniexxgitittcaacictvtiivviiicttiesessssiigpnififiiccaannttlyy iimmppaacctteeddrreessuultssbbyggeeooggrraapphhiiccaarrceaiinn22000099aanndd2200008..RRefeeferrttooNNootte 4ffoorrddiissccuusssisonioofnf restructuring and exit activities. AAPsasciiiaafiPPcaacciiniffciilccudiinencsclluJuddeessaJJaepptaanpnraneopepttesnrsalayel,essnlta0ontccauunstdsomteqoeurmsiopeofmfre$sn2t.o4$26f4644$bi4i2li0limooinllinnio22n0011i00n,,21$1..909a77n99d1bb$iill3ll0i6ioo4nn iminn l220n090aiannnd2d005$0229..9118800 bbiillllioenn iinn 2200088.. AAssiiaa Pacific includes Japan net property, plant and equipment of $420 million in 2010 and $364 million in 2009. NOTE NOTE 19. 19. QQuuaarrtteerrllyy DDaattsa ((UUnnaauuddiitteedd)) en,exptpershare mont) pi soma es Sour ou (Millions, except per-share amounts) fit ot Game gee gun i 2010 Netsles SemSem 56m 5 em 5 asm Net sales Costofsales 38 34s 35m ass ng Cost ofsales First Second Third Fourth Year Quarter Quarter Quarter Quarter 2010 $ 6,348 $ 6,731 $ 6,874 $ 6,709 $ 26,662 3,238 3,435 3,583 3,575 13,831 Pigs eihcesodgroTADOIOBSHIOOTASA-2060_1OkMo Tome https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 107/114 7175588..00110077 zane 1/13/2018 Migsohcivesadg OGatTIOOIOUSEHIAOI11O-2200T8600A__1H1SO0kk.hHtomm NBetaimniconmgeesratsihbaurteaabltebtuo t3bMlteo 3M 90 a 1106 Net income attributable to 3M https://www.sec.g ov/Archives/edgar/data/66740/000110465911007845/a 930 1,121 1,106 EY ons 928 4,085 EBaccranooimmnmgmmsiopopnennerrhshsgsaahharaserrrheecoaaldthtterbilrbsu--ud-tt-abeababblrsaelsittsieoocc 33MM 11.3311 11.5577 11.8555 11.3300 sn5.72 Commonshareholders dilted Earnings per share attributable to 3M common shareholders -- diluted 121.299 11.5544 11.53 112.288 se5.63 ns,exptpersbre mos) (Millions, except per-share amounts) NefW tgsleO s ITITY 2009 NCNCeotoestsittsnoaocflfeosssmaleleesstribute to 3M NEEaecartnoiinmmncgmosiomppneenerrssagtshhtharaaisrbrreeuteaaatbthtlrveioibtbluo--utdat3bbeMaalberslitsoe0c 33MM EEaccarnooimmmngmmsiopopnnnersrshshgsahahraraeserrhheeoolaalddttteeroriribssbu-ut-aibdablibaelslttuiooecte33dMM common shareholders -- diluted FiFirst ue Quar~r SSE $ 5,089 2m 2,772 sis518 0150.75 os0.74 Sema Second Quaw Quar~r Sosm $ 5,719 2m 2,977 783 21.12 21.12 esThird Qui Qua~er Fem $ 6,193 sn 3,171 951957 1361.36 135 1.35 soarFou~h Gunn Qua~er 56m $ 6,122 38 3,189 9s935 1321.32 130 1.30 YourYear MB 2009 5am $ 23,123 12109 12,109 319 3,193 ass4.56 as4.52 GeGnrrsoocssismpperrnootffoiitftissthccelalcPcuautlletanteetddPraaostenecetttissoaanllseessnmmdiinAnufufssoccroodsasttblooeffsCsalareleess.AIIcnnttthheeclffuirrsdstit nqqguumaeordtreirfioofcfa22t00i11o0n0,,aamcachhdaaerrggienrreteshsueulHltteiinnaggltffrooCmmartthhaeenMMdaaErrdccehha22t00i11o00n 2eRR0ne0eacc9coo,tnnmrcceeiilnlsiatictotiuoofinnthnAAegccPttcaoohtfiafer22ng00te11Ps00r,,o,ptddeaeecrctciraoeenlaassaeoendfdnnfeAectttfiifnobnycrcdooaammgbeealeiaantCttrraobnisrbaueleutAtaabcbltlo,eefinttocel3MulMdsbitnbaygytsm$,84od4deicmmfriiciellalaltisioooennnds(($e3m00t..a11di22enppcieenorrmdthdeieitltuHreteeudastlsthhzhaarbCreeeariietmmopap3anacdMcbttEyoodnnuSycy1eae1ata9irorm2n2i00l11l00o))n..,IInnor s52$e00c0.10o97n,pdpre.eeqrsratrdd1ruiieclautrt7uteeradidnndsgshh$caa1rhre4eam,,rigwwleiiistt,ohhpnS$a44(r5t53ima0ml.il0iyll2lopioofefnsr(e(8$dt00bi..y00e77adppgeeasrrihnadlroieltnu)tsndeadtlsehshehoaatfrrhreeie)radinlnteqtshuhtaeaerfttefrei,srrdstteqcquruaearartsteeerrd,, S60 million (8p0er.d0ite8 net income attributable to 3M $60 million ($0.08 per diluted sare) inthe by $119 million, share) in the or second quarter and $14 million ($0.02 per diluted share) in the third quarter. ne116 `TabTleoofifCCoolmnetreenst:s emItem 99..CChhaanngusesiinnaannddDDisisaagurreeeemmeennttssWWitithhAAccccoouunnttaannttss aonnAAccccoouunnttiinnguaannddFFininaancnicaiallDDisiscclloossuurree,. NNoovnee.. Hem Item 99AA..CCoontronlsatannddrPrPorocoecdelduruersse,s. aaE..xeTTchhueetiCCvooemmOppaannfyy ccaafanrrrdieCeiddhiooeuuctftFaainnneaeenvvcaarliluuaalattOiifoofnni,,ceuurnn,ddoeefrrttthhheee sseuufpfpeeercrvtviiivsseiionoennassannodfdtwwhitiethhdetthsheigppnaararttniicdciiopppaaettriioaotnniooofnfiiostsftmmhaaennCaagogememmpeanenntt,y, siinnc"cdluihdsicinnloggtstuhhreeChCcoihneiterffols aeEannxvddeapcprlurotoaiccvteeedoduOutnrhrfe,eefsisc""Ceh(raiasaesnfddEdeexfCfcimehnueieteddif ivnFnetinOthhafeenfEciExicaxcelchrhOaaafnnnfgdigcCeeehrAA,iccotetfRRFthuiuelnleaeenf11cf38-ei315(c0aa) tl-iO1vf5ef(neie)cs)easarcos oofofntfhcttelhhueededeeesnnidgdtonaofatftnthdhtehoepppeeCerroriiamootdpdiocacnonovyove'fersrtehedddeibsbCcyyoltomtishuspisraernreecyppo'osonrtrt"tr.d.oilBBsscalasoensdduaurupeprpooccondetndththuraaorttelss active. evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures are effective. brb..eTTphhoeerCtCoiomnampgsapndaeynfy'i'snsemmdaainnaatggheemmEeexnnctthiassnrrgeeessppAoocnntssiiRbbullleeeffoo1r3rs4e.ts1t5aa(bb0l)ilshiMihangniaaangngeddmmmeanatiinactanoinindinnugcgtaaennd daudonegaquusaatetessssyynssttteemmofootfhfeinnCeteoramnplaalnccyoo'nnsrtrooilnlotovevrenerarlffcianocannitcaoillal vCroevoepemrormrfftiiiinnsnagainn,occainisaalldrreeefpnmpooierredttniiniannggltbbhCaaeossnEeeiddxrcoolhnn--attnhIgheteeffArrraacamtmteeRewwudoolFerrkkr1ae3cmsatte-a1wbb5oli(irfs)skh. e.hMdBbeaabydsnyaettgdhheoeemnCCetoonhmmet mcmaiosintsttdteeuseecsotomefefSdnSptaop,nnomsanaossnrsoaeirsginnsegmgmOeeOrnngrtatgnoacinfozitnazhtcaeiltioCuondonsesmdoopftfahnthhtye,e'TsaTrironeetsfaeddDrnwesacyalyecmobnetrrol31, 2`C2C0oo1mm00pm,atthnihsyes1'CiCosonomi0mniptnaepIrnann,ynateyl'r'scsnoaitnnlteteCornlonaanolvtrcecorolon-nt-rnaIonnlctoeoivgvaeerlrrartfFeeiipndnoaarFnntccriiainaamgllaerpswepoooforDrkte.inrcBgeiaimssisebeedfeffnforeencc3ttitg1ihvv,eee.2.a0sMM1sa0eansneasamxggceeelmnmedt,neetmdn'ta'Cssnoaaagsgsesseneemtsssesnmnmee.tennctotAonorfcfzltauhhnedeteecdIfftfnhec.acttta,ivvnaedesnnAoeesftssDeooefnfctteHhhmoeelbdeirn3g1s, ScCS.tAoAsm..,wapwhasinhcyriceh'shcwiownerterdereerenadaablllylscaohcuneqtCurioirldeoodvbbeyyrmfttihhneerpaenCClacootiameamdlppraneaonpntyyohryiistninenttghhaeeacsqffuoooiuusfrriDttthhieogqcneusm,aribtuenerroho3eff13t2,a0g02g110r001e0giianneptpxeu,ucrlrcruchpdhareaesdsseeCcbbnuoutsgseieidnnneetesssIssncccoh.om,ambAinbrniia1znt0aaintpiotonInsnes.c..TTraooonatfdalccloAaanstsstessoeeelnttitssnidaaaHnntdtoedldtdtooitntaagllls a Cnaseostemstasplas eaansnnddrieleceeasosrt ssretdthaehadalnnblyo1|pwtpeheeretrcdocCeeenonxtmtcoolpfafadcnceoyonanrcseoqolulaliitddseaaidttletioddontnnshetertsosseamalcectsqeouoififsttihhatieeosCnCossom, mpienapstnahnyeosy,f,amgrisengepsfrepeencregtncataittliveve,celrolyeynpt,urraesoslsoeoofnfvteaaernndddflfeifonsorasrntttchhhieaeaynlyee1apa0rorpereeinnrndcegeednddtDuDoereicfcneceormntbhsbeoeerlrif3di3r1a1s,tt,ey22de00a1t1or00t.a.olf a`CanCnoomcamcqppquaauinnisysii'eitissiooainnrnetwweahrhlnilialolleewciieonndntttetrgeoorglaertxoiacvntleguirtdtnhhengeeaaaanccqcqqiuuuaiisilrrieteriddeopcncoosormmtfrpiopnamgananyytohuuefninrDddeaeesrrcgseugeimsudsibdmeeelerliinnn3tee1oss,fee2sisn0ttt1aaeb0brllnhiiassahlhsecebddoebnbetyynrtotalhhuoeevdSSeieerctcufuirebnriydiattiniePecssriaaailnncrddoepwEEoaxxrtcctihehnaragnhngdogeuurCCsinooegmmCmtomhioesiLpsifseiLoirrosn,snt..yaeTTnahhreeof oiCipnnioddnmeeipppoeeannnnoddyenen'nstttirenreetgegfirisfnstctaeeclrrieecvddoenppntucurbosbllsliiooccfvtaaehccrccefooiCunuonantmntiicpnniagganlifryierm'mp,so,iaratnsistnetsgratnataatselecddoofinnDttteohhcleeeiimrorvrbeeeepprroor3rntt1aw,wn2cihi0icac1lhh0riihespaiosnnrbcctleuiuenddngeaeaddsubohdeefirrtDeenedin,cb,ewywhmPihbcriecihchrewee3x1xap,ptr2ereer0ssh1sso0eeu.sssaenCouunonqpqueuaralsliiLffiiLeePdd, an opinion on the effectiveness of the Company's internal control over financial reporting as of December 31,2010. Cc.oTmTphhleeerrteewwdaafssinsncooalccqhhuaannaggretiinnattthheehaCCsoommmaptpaearninyay'l'sslyinanftefeeranctlaeldcc,oonnotrtrrooll rvoevesersroffniannbaalenyicaiHalilerrlecyppooorrttmiinanggttrtahaatltlooycccacuucrrtree,dddhudreuiCrniongmgptthhaeenyCC'oomsmpnpaannyry''ss mmcsoonstttrorelcceeonnveltlryy Financial eprtng. completed fiscal quarter f'mancial reporting. that has materially affected, or is reasonably likely to materially affect, the Company's internal control over Tem98. OtherInformation, Item 9B. Other Information. Pigs eihciesodgroTADOIOSOIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ante 108/114 11775588..00110088 zane 1/13/2018 Migsohcivesadg Gat OTIOOIOUSEHIAI1O1-2O20086T00__A1H1OS0kk.hHtomm APPuugursuusratns2tttouo0SSaeec,cnttii2ototnnh0e11C55o100m33op0ofaftn,thhyeeDiDohotrdtpddsde:-/F/Fwrqrwaawnntukk.osdeWWiicas.aglclrlollvoSS/sAetecrr,cetdheiitnvRRecseeo/fefnoodnrgremamcrt/adaiannotddna/CwC6i6oot7nnh4ss0huu/0mme0efe0ror1u1PP0rrr4moo6itte5ence9ct1tii1oo0nnt07AAo8cpc4tet5r(/(aatththeee,""cAAccett""a) wwhshiaicfcehhtybbeeiccnafamomreemaeetffifeoecncttinivvtees dpApeeeufrrgiioonuddesiditcc2urr0nee,dppe2oor0rrt1Sts0eFf,cittllheidodenwCwi1oit5tmhh03pttha(hen4ySS1EEi)sCC(.rA.e)qDDuuuorifririennhdggetAtothhcdee,yiysecefalaorrr2os2e0m,01t1i0hn0,e,ctMothhineenneLeLSciiattttifloeeentRRywooacictnkhkd,,thAAHrerekkafaoalnnutshsraasmAs,d,immnmieinisninsiettrroreeapccteeiirioavvnteeedd(sct,cihciteetaar"tttViiaiooilnnnassftsiafooofnersthty"h)eri.eneefTovvhriimeoollaLaatittiioitoonennssinR5aoistcsk famdfcaieicfnliieilnitetryydercrueeecnicedveieievvdreecSdideappctrrtiiooooppnnoosfs1ee5odd0a3assss(esaeve)ses(ss1nmm)eV(eAnintl)tsasoiooffotfnh$$se44Aa,.2s2c2td44,effwwrihonhimeicdc,hhthaaaenreeMdhrrieendppeooprrSrttaaaofbbpelloteeyusuneanddndaedesrHrsSeSeesceastclmtitheioonnAntsd11m55n00itn33ihs((eta8r)Xaf(1t1)iao)F()nFoaf)(tmhooefut"nhheVteAoiAocflc.a$tt.3io8TTn,hhs7ee"8)9CC..ooTTrrhhooenenLa,W,iatCCtnalsaelaliiRuffo,oorrcnmkiiaa $`mWW1ii7inss,ecc4oo1rnne9scswiiehnniivmmceihdinnecearirtreaeeptccieooeiinrvvsteeafddobccrliisateaettviioeodnnnesVrfSoioorerlccateitiiiggoonhhntesee1eansn50dVV3ieiofo(linl8aaetXtidi1oo,XnnaFssn.).dTTohhfhaetedhWWeparaAosucp.saoausTefhfdaaeccialiPsilsiitteytyssrsrbmeeoccerein,ivvtNseeoddinprprtrohoCpepaotorsoosetleadidlnaaaams,sseoemsussisnmmnteoernnfettc$sse3iii8nv,t7ethh8dne9.otooTacthaletl aaWommnaoouufsunoatrunoa,otfnfy. ``V$CV1oiio7mol,pa4lta1ain9otnyiwsosinhasidscdnhdeetfafirmreneeercddee,,pibbovueurtttaarbrnelyceoeuitevnheddreraccpShpretrocooiptpinooosnsseev1add5soa0srs3ecsde(esasrs)ssm(md1ree)en(pnFtot)rfftoooarfobtolthehtehueernArdcvveiti.orolTlSaahtctieitoonPonsisnttins1nbt5othhre0eo3,ttoN1ataol)lrtaahmmorCaouahunarnovttleoionftfaS,b$4m4e00i0nv0.eiDoDruleruacitrieninogivngtsehtdrheeenpyoyoerecataiatrrab22tli00eo10n0,f,ohtrheeany hatChenoerdmreeeurpunanSdndeeycertr,d,ihiohdnaadnd1on5nt0oor3mem(ic8nein2iivin)neg,g.a-arnrnoeyldlaaotatetehddderfnaoactiplatlaeiittnciiodsensi,,snrgocerceeeiogivravdeleeddranscnotroieopwwnorrrbiittetatfeebonnlreennuoottnthiidecceeeFrsseSdffereoorcammtliottMnhheei15nMM0ii3Snn(aeeaSf)Sta(1ayf)ftesoytnyrdahanaHnvdedesHHloeehthaaRelltrehhvvAAiioeddlwammtCiiiononsimsssmtrriiaestpoisooninrtoarrnebeppleoorrttaabbllee under Section 1503(a)(2), and had no pending legal action before the Federal Mine Safety and Health Review Commission. nw117 TbofClomees Table of Contents PARTIN PART III Documents Incorporated by Reference Documents Incorporated by Reference IIRnnergrueelssaptopinoosnenf1tsoo44PPwaairrttthIIIi,In, Ie1te2mm0sds1a01y0,s, s11,1f12,,e1R2e,1g13i3astanrndadn11t4s4,f, ppaacrrttssyfoetfathrheeeCnCodomompfapDnaenycy'e'ssmdbdeefeirfnmi3ti1t,iivve2e0pp10rro)xyoyrsstasetsemmneneunnatl((1tmoebbeeetiffinillgeeddappuburerssuueaalnndttottono May 10, 2R01e1g,ulaartieoni14nA cwitohinbr1y2rp0efdroaeynsrcaftaenr tRtheigseFisotrdramnt's10f.isKcal year-end of December 31,2010) for its annual meeting to be held on May 10, 2011, are incorporated by reference in this Form 10-K. Hem 10.Directors,ExecutiveOfficersandCorporateGovernance. Item 10. Directors. Executive Officers and Corporate Governance. 3"TThMheeiinnfrfooorrsmmyaastttiioaotnnermleealnatttiifnngort0otsddiairrneenccuttaoolrrmsseaaenndtdninnoomomfisnietensooeoffce33ksMMhiissoesoetlbt effdoohrreetthhlrduuannsdndeerMthhyeecc1aa0pp,tt2ii0oo1nn1""PP(rr"oo3ppoMossPaallrNNyoo..S1|t---t-eEFllmeececttniiaootnnnod)offDiDiiiernecccootorrrpsso""rtiinned brb3yyMerre'esqffpeeurrreoebinnxyccyrleesehheteaemrtrdeeseiminn4e,.0nI5Itnn,fff4ooor0rrmmi7tas(att0aiionXonnn,suaba(blo8omuu4te)eeextxneiencdcguut(otiivfv5ese)tooofcfofkffiRhceeeorgrlssduleiisrasitinntioccollbnuueddSeehdKdeliidnni ocIentnemMmtia11onyoef1fdt0th,hui2issn0A1Ar1nnnn(t"uh3uaMlcaRapPletrpioRooxnreyst oopS"nnStFoaeFctoreotrmirtmmoenn11t10"06-)-K0Ka.)n.TdTBhehineseeiifnininfccfooiorarrplmmoaatratiitooennd ``rOeOwqMwunneieerrmersdshbibippeyRRrIe--tepespomrAohtsurtiid4inni0gpgt5C,CoC4om0opm7ml(mpicil)ait(an3ntc)cee,e""(",d,of)""(t4GGh)ooevavene3rdrMmn(aadPnn)rc(c5oeeo)xoyfoffStthRhteaeetgCCeumooleamnmttipopaannanySdn----sKy-uciDDshiicirtoencncfttotooarrirmnaNNetodoimomuinnnianidstaeitirionotnchnoPerPrpcrooaorcpcaetetisosessnd",bs,"y""BSBroeeoacfarteridrodaennancn1ded6hC(eCaor)oemiBmmnem.intietfetieceeial Membership -- Audit Committee" of the 3M Proxy Statement and such information is incorporated by reference herein. (CCCoooddneeotofrfEotilhacirecses..rAAelqlluooiffrooeuuodrreeammbpipdleleoybyeyeee3s,, Miinncclluhodinin:ngsgtaoonuudrriCnChghibeiuefsEfiExnxeeescsucctoiuvnedtOuOficfftifvipcceleerri,,cCCihhsiiteeofFFciinunaarnnceciiaatllhOaOftffobifuicuceesrraiannneddCsChsiheiieffcAAoccncodcuunoctitnuigenOnOdffftfiiccieerrnaanngdd cCoonnsitrsotlelnetrl,yarleegraelqaunirdedtitocaalbidmaenbnyer3.M3'sMloansg-psotsatneddintghebeuxsitnoefsssiccohndcuocdtepoofleictieisctooennsiusrewetbhsaittoeur business is conducted in a p(c(ehotrtntsppsoi:sn//twemnawtylwyr3.le3eMqMg.ua.eclcsooatmmnbadcu/boseutiphsnyiicncsaeosflstscmhcooeannncdnduoeucdrc).t.)3o.AMfAtethtttahhiseecps,soaasammteeeodwwecthboeessbtistei,ttbxeet,yoawnfnyrysfuiufcnuthtugurcreooedauaemsmeoaneftndetdmthhmeeinceftsnostloslntoooiwttitshhnwegacecdoboddsdireeteeoosff:tetihcicss wilwill allsoobbeeppaosstteedd..AAnnyy person may request a copy of the code of ethics, at no cost, by writing to us at the following address: 333MMM CCCeoonmmteppraa,nnByyuilding 22095-02 3SASMttn. PPtCaaouuelnnl,,t:eM Mr,DNNiBrue55cil5t5do11ir4n4,4g4B-121s020i000n-00e9sEs-C0o2nductand Compliance Attention: Director, Business Conduct and Compliance Hem 11. ExssativeCompensation, Item 11. Executive Compensation. in"TfThoheremiinantffoiorormnmaauttniiodonnerreetqhqueircueadptbibiyoyn"IetCemmom44p002e2onofsf aRReteggiuulolaanttiiCoonnomSSm--KiKtiiess eccooRnnettpaaoiinnree?dd)auunnndded"rDeithhrreeecccatapoptrtiioCononssmp""eEEnxxsceeacttuiitvoiveneaCCnodommSpteponecsnkasaOttiwioonnne""rs((heexixccpGlluuuddiiidnnegglitthhneees" ofthe 3M rosy Statement. Such information is incorporatbeyd reference. information under the caption "~ Compensation Committee Report") and of the 3M Proxy Statement. Such information is incorporated by reference. "Director Compensation and Stock Ownership Guidelines" "TITnhhteeeriinofncokfrsmoaanrtdiomnnaserdetqqeuiuirioPraenrdtbibcyyipIetaemtmisos4n4"0a07n(d7e)"()E4x)eaacnnuddti((ve6e)5(C)5o)moofpRfeRenseggaatuillaoatniot--niSSoCK-onKmpiissecncoosnantttaaiiionnneeddCuuonnmddeemr itthhee ccRaaepppttoiioronn"ss "o"CfCtoohmmeppe3neMnsasatPtriioooxnnyCCSooammtmemimiettnteetee. Interlocks and Insider Participation" and "Executive Compensation -- Compensation Committee Report" of the 3M Proxy Statement. `rSeufcehrienncfeo.rmation (oerthanthe Compensation Commit Report,which shal notbe desetobe "fled i incorporatedby Such information (other than the Compensation Committee Report, which shall not be deemed to be "filed") is incorporated by reference. us 118 Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 7175588..00110099 ante 109/114 sats 1/13/2018 `TibleofConny Table of Contents ipso ovIcHeedonGanBETAOCO IOS OD7OAS 1120010k Hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm Tie 12.SecurityQuership of CertainBeneficial QueersandManagementandRelatedStockholderMatters, Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. ""TTIhhneeifinnoffroomrrmamatatitiaiooonnn SereaoltcaitkinnOggttoowseseccnuurriiotetyyfooDrwiwnrsencrstehiaiprsoaopsfnfcdhecErexitretaacpiiunntbbieveneneefOfiifccfiiiaaclleoorws"naenvrsda"anSndeedcmmuaranirntaayggOeewmmsneeennrttsishsisspeottfffooMrtothhrueunndTdeherartnthhe Pddeeersscigegnanttaitioonn Stockholders" inthe IMProxy Stateamndesnucth "Information on Stock Ownership of Directors and Stockholders" in the 3M Proxy Statement and such information i incorbypreoferrencte heeredin. Executive Officers" and "Security Ownership of information is incorporated by reference herein. More Than 5 Percent EqEuqiutiytyccoommpepnesnastaitioonn ppllaannss iinnffoorrmmaattiioonnaa3s ooffDDeecceemmbebr3e31r1,, 22001100 ffoolllloowwss:: Equity Compensation Plans Information (1) Equity Compensation Plans Information (1) [EqPrulainvtCyatceogomrpyensationplansapproved by secur holders EqSRSutetiootsyccrkkciocoomippidtpiosoetnnnossscaktiointpslans approved by security holders TN`RoNteooasnnlt-r-eiccmmteppdlloosyytoeeseckdduiirneeictttsoorrddeeffeerrereddssttoocckkuunintitss SubEETommotptapallllooyyeeeestsotocckkppuurrcchhaassee plan plan EqESuhuqiobutltiyotdytecarclosommppeennsastiaontppillaoannnss nnoot aapppropverdbbyoyssveeccueurriidttyy Tolholders Total xA Nombeot Number of securities to be "ire issued upon exercise of coanaig outstanding lamin options, warrants i and rights T3504 70,335,044 5509080 5,549,080 199323 199,323 Tema 76,083,447 ---Tew 76,083,447 TOOT= 76,083,447 5B web Weighted- average pet exercise price of ootasiing outstanding plore options, warrants tv and rights S us $ 74.80 =-- ---- ET) $ 74.80 =-- 2] $ 74.80 5 Tam-- $ 74.80 cC Nome dct Number of securities remaining available for pe hoc future issuance under equity compensation arsing plans (excluding sli aedin securities reflected in tan column ---ho-d SESE-----314,383245,306805 6159445 4,334,360 36,159,445 TAS-- 36,159,445 (r(11e))m1aI0ninccioonllguumamvnnilBBa,,bttlhheeefwwoeregifghuhttuteerddea-iavsveueraraanggceeefeeoxxrecsritcoissceekpporrpiictecioiinsssa,onnrelyysiaarppcppillidciasctbaolbeclkteonsoitstotcsckkaoonppdttiisootnnoss.c.kIIannwccaoorllduusmfmonnrCCn,o, ntth-heeemnnpuulmmobbyeeerroeodfifsrseecctcuourrritsieiesss approved in otalandnot individuallywithrespect fo these tems. remaining available for future issuance for stock options, restricted approved in total and not individually with respect to these items. stock units, and stock awards for non-employee directors is Itteemm 1133..CCererttaaiinnRRelealattiioonnsshhiippssaannddRRelelaatteeddTTraransnascatcitioonnss,, annddDDirircetcotorrIInnddeeppeennddeenncse,. Wi`Wwtiitthhhrrreeessspppececttcfttotootccreearrnttsaaaiicnntrireeollnaasttiwioionntsshhhriiepplssaatanendddpreeerllsaaotteendds.ttrrTaahnnessaacictntiifooonnrssmaaatssiossenetrfoeorqruttihhrieind lIbteyemmte44m00444o0of4fR0Re)geugalunaldattiliooennmSS-4-KK0,,7nn)oomomfaRattetegeursslarreteqqiuuoiinrreeSdd-iiKssccisll:oossuurree tcwchooiennthttCaaroiiennmseeppddaeucunntndytdeo--errtrttahDhniesrcaecaccapttptiootirinooIsnnnsswd""eiGGtphoeovrnveedelrearnnntaecandenc"cpeeeoorfosftofthnthehsee.3TCCMhooemmPrpipnoaafxnonyyrymS---ta-attiRoReenmelelraaneittqeedudainPPrdeeedrrsssuboocynnhITTitrenramafnonsrs4ama0cac4ttti(iioboonn)naPPinooldiliicIctyyneamanncd4d0PPor7ro(oacrc)ebeydodpurfureRrefeoesesgr""uaeaalnanncitddeiho""eneGGroSeovd-ivKener.rinnsaannccee ooff the Company -- Director Independence" of the 3M Proxy Statement and such information is incorporated by reference herein. Itteemm 1144..PAPrriinnccciippaacll AcocounutinngFFeestessaanniddSSenerrvviigcceess.. "TRTehhgeeiisinntfefoorrermmdPaauttibioolnnicrlAeaclatctioinnuggntttooipnprgriiFnncciiimppa"llaaacnccdcoou"unAntutidinniggtfCfeeoeesmsamanniddtsseerPrvvoiilccieecssyioissnsseePttrffoorrAtthhppuurnnodvedarlettohhrefAddeuesdsiiiggtnnaaatntiidoonnPe""rFmeiFesssieoobffltteshheNeoIInnn-ddAeeuppdeeinntddeeSrnetrtvices of Registered Public Accounting Firm" and "Audit Committee Policy on Pre-Approval of Audit and Permissible Non-Audit Services of thheewInndependent RegisteredPublic Accounting Firm" n the 3MProxy Sstement and such information is incorpboyrreafetreencde the Independent Registered Public Accounting Firm" in the 3M Proxy Statement and such information is incorporated by reference herein. 1119 `TabTle ooiffCCoobnntetenenttss PARTIV PART IV tem Item 1155..EExhxihbiibtitss,,FFininaancnicaiallSSttaatteemmeennttSScchheedduulleess., s((a9u)) t((11e)) mFFiiennanaonntcncipiaaallgSSettaa4tt1eemmaesenntftsosl..lToTwhhsee: ccoonnssolliiddatteedd fn'manacnicaiall ssttaatteemmeennttss ffileldaaesppadarrttooff isthisrreeppoorrttaarree lliisstteedd iinn thhee iinnddeexx 0to ffiinnaanncciiaall statements on page 41 as follows: RRepeortoopffIInnoddeeppreennddetennttRRegeigsistteerreeddPPuubblliiccAAcccocuorutnitninggFFiirrmm Phewsoc ovIchveledporGHaBSTACOIOIGSOTIOUTBAS 12060110k om https:llwww.sec.govlArchivesledgarldata16674010001104659110078451a 11-2060_110k.htm ember Page Number 543 ona 110/114 11775588..00111100 zane 1/13/2018 Migsohcivesadg Got OTIOOIOUSEHIAIO2O08T0_AHOSk Hom https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm CoCnosnosloildidaatteedd SSttaatteemmeennttooff Iinnccoommeeffoortthhe yyeeaarsseennddeedd DDeceembecr3311,,e2200110m0,, 2200b0099aaendd22r000088 "44 ConsolidatedBalance Sheet aDecember31,2010 2942009 Pr] Consolidated Balance Sheet at December 31, 2010 and 2009 45 CoCnos2no0sl0oi9ldidanatdteedd2S0St0ata8tteemmeennttooffCChhaannggeessiinnEEqquiutityyaanndd Comprehensive Comprehensive Income Income fortheyears for the years endedDecember ended December 31,2010, 31, 2010, 647 2009 and 2008 46-47 CoCnosnosloildidaatteeddSStatatteemmeennttooff CCaasshh FFloowwss foorr thheeyyeeaarrs eennddeeddDDeseccermnbbeerr 3311,, 22001100,,220000991anndd 22000088 e4l8 NotestoConsolidatedFinancialSemen 116 Notes to Consolidated Financial Statements 49-116 t9(ah))ey@(2)a) eFFiirnneaaqnnucciiiraaelldSoSbataetmeemenecnttSaSctchhheeuedrdueulqsleuesis.r.eeFFdiinniaannnfccoiiraamllasstttiaaottneemmi eenintntscscclhheuedddueuilldneestshaarerCeoonmistoiteltediddbabetecceaauFuissneeaonocffittahhleeSaabbsseeennccmeeoofeftothrhteneheccoonnndodititteiioonhnsseuurnnodd.eerrTwwhhehiicchh they are required or because the required information is included in the Consolidated Financial Statements or the notes thereto. Fsiingannicfiiaclanstiastuebsmiednitasryo.funconsolidated subsidiaries src omitedbecause, considered ntheaggregatetheywouldnot consti f'mancial statements ofunconsolidated subsidiaries are omitted because, considered in the aggregate, they would not constitute The a significant subsidiary. 9(1a0)3,(4)36)rEEexxmhhiaibbniitatssg..TeTmhheeneetxxchohinibbtiirtatscartreseoetrihtcheoermrpffieillneesddawwtioitrthhyttphhilisasnrrseeoppororrtatrooarrniignneccmooerrnpptoosrra.atetSdecbbyy(trr)eeffEeexrrheeinnbccieeti,innwtoohtihtchihissfrroeelpplooorwrtt... EExxhhiibbiittmnuummbbeerrss 1100..11 tthhrroouugghh 10.46 are management contracts or compensatory plans or arrangements. See (b) Exhibits, which follow. (b) EEsxhhiibbiitss.. mw 120 `TTiabblleeooffCCoomnteensts: Tndex to Exhibits: Index to Exhibits: @(3)) Arices Articlesooff Ianccoorrppooraattioonnaannddbbyyllaawwss. G1)(3.1) dCeCareirdftiifcicaaatyteeoo1ff4i,in2cn0o0rc7pooratrionp,aasosaamrmeeannddteeddiaassoooffnMMa,ayy 1111,,22000077,, isiinnccoorrppoorraatteeddbbyyrreeffeerreenncceefrfroommoouurrFFoorrmm 88.-K (2)(3.2) BdFBeyaybltleraaduwwasMsr,,yaaayss12a1a,m42,e0m2n00d.0ee7d.aanss oofdfFFeebebrruuadarryy1010,, 22000099,, raree iinnccoorrppoorraatteeddbbyyrreeffeerreenncceefrfroomm oouurr FFoorrmm S8-KKddaatteedd February 12, 2009. () Insraments definingtherightsofsecurity holders, including indenture: (4) Instruments defining the rights of security holders, including indentures: ((44.11)) InINdnAed,netn2uturerse,,cddcaateteseddoarassroofufsNNtoo,vvweeimmtbbheerrre1s177p,,e22c00t000,3,bbMeet'twwseeeeennno33rMdMeabanntddseTTchuhreeiBtBiaeassn,kkoofifNnNceoewrwpYoYroaortrekkdMMbeyellrlloeofneTTrrerunuscstetCfCoromompmaponaunyyr,, (42) inNFFdo.oeArnmnt.,ua8rs.-eKK,sudddcaaacttteeeesdddsaoDDsreeotcrcfueemsNtmeobebve,reew7m7r,,ibt22eh00rr002e00s1.p,e2c0t0t2o,3bMet'wseseennio3rMdaenbtdsTehceurBitaiessk, iosfiNnceowrpYoorartkedMbeyllroefTerreunscteCofrmopmanoyur, (4.2) NIiNnn.AdAce,o.n,rt0aupsroescr,uaedctascbetesyedsdosorraersftreorrusfesNntteco,eev,fewwmoiitmtbhheRrrree2egs1ipss,ete2crtc0a0tt0toi2o,LLiqudnbiqNeutowi.deY3eYi3nei3e3l-lMdd1O0O3pap2ntt3dioo4nTnTohTMnMe FBNNooaortntmeekss$oz73feeNroloewcceooYuuodppnooorknnFeMssberenulilaoeorrndydeTe1bnrb4u,tss2st0eeo0Ccc3uo.urmirrtpieeas,n,yi,s ((44.33)) FFiYinoiscrrsokttrMSpSeuoulprpaplptloeleendmmTbereynnaartsaletlfCeIorndemdenpencnatetnuufryrroee;,mNdd.aaRAtte.eed,gdiaasastssrouaoftcficoNNenoosvNvseeoorm.rnrb3bse3er3rt-e1116,,0,32w220i030t054h5,ro,entosopFIIeonncrddtmeenn0tSLtuu-ir3reqebufbieileedttdYwwieoeeneelnnFde33ObMMprautaaondrnydTMt1hh4eNe,Bo2Bt0aei0ns3kz.oofofNNeeww (44) cEoYcxuoocuprepkopoMtnnaseseslenlsnoieionorfrToddrreuetbsbhittisCsneeotccmhuueprrpiatrenieesysc,,,eNiidssi.Aiinnng.cc,ooEarrxspphsooiurrbacaitctteeedds.bsbo,yyrrtrerefu2feesartrneeeennd,ccew4ef.i3fto,rhotmmrheoesopunuesrctt$8r--taoKKmdLedaniatqttseueddidedNfNoiYnoviiveenlegmdmbtObehpeertriro1i1ng77Th,,Mt22s00N00of5o5.t.heoslzdeerrosof (4.4) ilnoElosnxntgcrg-eu-tptmeeterramnmstdssdeeebwtbitfttsohsrcethrcueuisrrnpiietticheetes0opofrfei33cMMedhsihanavgveseEobxbefheueilebnoninotaosgmm-4it.i1entetr,edmd4d..c2eWWbaetenedoaafgr43ers.e3Me,.ttthoeufuinrmsntirssuhmtooetnththseedSSeEEfiCCn,i,nuugppotonhnerrereiqqguuheetssstt,o, faachcoooplpdyyeorosffossfuucchh instruments with respect to issuances of long-term debt of 3M. ((1100)) MMaatteerriiaal ccoonnrtraaccttss aannddmmananaaggeemmeennttccoommpepnesnastaitioonn ppllaanss aanndd aarrraagnegremmeennst:s: ((1100.11)) Te33fMMie22n00c00e88LfLorononmggoT-uTerermmForIImnncc8eenn-ttKiivvdeeaPtPlelaadnnM((aiinnyccllu1ud2dii,nn2gg0a1am0menedndmmenetnststthhrroouugghh FFeebbrruuaarryy 22001100)) iis iinnccoorproproarteadtbebydy (102) (10.2) rFiFenoofrcemmroernoopfcAfoeArgfagrrotreembeeydemomrueenreftFfenrfooretrnrmcSSett8oor-ccKokkmOdOopatptueitrdioonFM noGGraymrra1an82t.ts,Kt2dtsoo0a1tEE0exx.dceecuMutatiivyveeO1Of3f,fi2fic0c0ee8rr.ssuunnddeerr 3M 3M 2008LongTem 2008 Long-Term Incentive Incentive Plan's Plan is ((1100.33)) FiFInnooccrroemmnrtpooiofvfrSeaSttPteooldcacnkbk,yOOcprpoeitmfoiemonrneennAAccggeirrnefergeeommmFeeenbnotrtufurfaorFrryooorp9pmt,tii2oo80nn-1Kss0,rgdriaaastnetitdneecdMottraoopyEoExr1xac3tee,ecu2dubi0tvi0yve8er.OeOfffeffriieccneecrsseufunonddmeerrottuhhree FM3oM2r0m20010088-KLLoofnnorggt--hTTeeeyrrmemsr IenncdeendtiDveecPelmanb,erco3m1,m2e0n0c9i.ng February 9, 2010, is incorporated by reference from our Form 10-K for the year ended December 31, 2009. Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm ne 111/114 11775588.0.10111 zane (104) 1/13/2018 (10.4) (105) (10.5) ((1100.66)) (107) (10.7) (108) (10.8) (109) (10.9) ((1100:.1100)) (1011) (10.11) (1012) (10.12) (10.13) (10.13) (10.14) (10.14) Migsohcivesadg OGatTICOIOSEHIAOIO20T80A_HSOk om FoFLroormnmgoToeffrRRmehetsstIptnrtsic:c/re/tnweitwdicSwvSte.oPstoeelcccadk.kng,oUUvnen/ifAiftrtecAcAhtgigvirvereese/eeeFmmdeegebnanrrt/tudfafaoortary/r6,ee6ss72t4tr00ii1c/O0tte,0dd0s1st1tio0oc4nkk6cu5un9oin1rti1tsp0s0rgg7rar8aa4btnn5dtt/eaed1dr1e0t-fo2e0ErE6xex0nce_cuc1etu1fOitirvvko.eehmOtOmofufffriceFeorrsrmuunnd1de0rKtthhefeor33tMMh.e FoLyyeeroaamnrrgee-Tonnfddeeer3mddMDD2Ine0ecc1ecen0metiPbmveeebrfPeo3lr1ram,na2,310ne,20cf0f09ee9.S.chtiavreeFAewbaruradryun9d, 2010, er the is incorporated by re 3M2008 Long-Term ference from our Form 10-K for the IncPleannsintcorpioravtedbey FrrFeoofremmreeonofcffSe3tffMorroeocm2mk0Oo1pour0turirPFoFeeonorrfrAommngrm5r8.ea-KceKnmcddeeaanetStteehfddUaorMMeSaAa.rwcharr44Ed,,mc2u2p0n0l1hd10oe0,yr. ethsue n3dMer2030M8 Long-Term Incentive Plan 2008 Long-Term Incentive is inc Plan orporated is incorpr by ated . FbbFoyyomrrrmnefeeoorffeRfSnecstoeetcrfkrirrcooOtmmeepodtouiSnoutrnroFcFcAokogrerrUmmeneim11t00.eA-nKgftrffeoooerrmttUhehen.eSyty.feeEoarrmr Uepe.nnlSodd.yeeEeddemDDsepucelcneoedmymeberebs3eruMrn33d121e,0, r202080300LM88o..2n0g0-8TLeormngI-nTceernmtiveInPcleanntiivsePinlcaornpsorated AFiinmoceromnnrpdoomcfreaRtneoetdsbotbrfryiyctrthreepeedffee3SrroetMeonn2ccc0kere0Uf5rranooimmMt aoAtonuguarrregFeeFeommorderemmnntt11fS0o0t-roKKcUfkf.oOoSrw.tntEhheemerypyselehaoaiyrrpeeePennrsddoueegnddrDdaDeemrceac3eenMmmdbt2be0erhr08333111L,4,2o2n020g000-088T8..LeormngI-ntceernmtivIenPcelantnivise 3APP0llmaan2en0nt-d0-m5tureaMnnatsnnofaefgrtoehoefmefses3notrMotcckk2t0ooo0pcp5tktiioMoOnnwsasnntetoaorgsffeohmroimepmnetrrSsosptgpooorcuuakssmesOsi,,wsiiinsfnecflrioslerehdpdiophrheaPetrrreeeodwwgiribtatyhhm.reafnedrethnece3Mro2m00ou8rLornog-yteSrtmteImnecenntt ive or the 232300MM00255200AA00nn25nnuMMuaaalalnnaMMaiggeceeetmmtiiennenggnttooSSffttSSootctcookkccOkOkwhhwnooelnldrdeeserrsrhsh.i.ipp Program rogram is is incorporated incorporated by reference by referee from rom our Proxy Statement ourProxy Semen for or the the 23320M0M00222109AA09nn27nnuMMuaaalalnnaMMaiggeceeetmmtiiennenggntotSofStfStoStocotcokckckOkOhwhownloednldreeesrrrsshsh.i.ipp Program rogram is incorporated incorporated by reference by referace from rom our Proxy Statement ourProxy Semen for or the the 3A11M99m9977e19AAn9nn7dnnuMumaalaelnoMMnafege3teeetMmstiinneggn1otofSft9SSootc2ock0ck09kOh2ohawlondn7ldeederrrss2sh,0..i0p5 PMrograam isnincSoatropcokgraOtwedneebrysrmheifeprPeernocgernfarmosmtaorur Proxy Statement incorpratebyd for the FoArTeermffmeeereennnodcfcmaeeewffnrarotrsommdooaufog3urrMreFFeoom1rre9mm9n7t8,.o-2KKr0dn0do2eant-aedqndudaNNl2oio0fvv0iee5emmdMbsbeeoarrnc1a1k4g4,e,2mt20o0e00nn88ts..SgtorcaktOedwunnedreshripthPer2o0g0r5amMsanaraegienmceonrptoSrattoecdkbOywnership FFPPorroomorgmgnrraaoommffa,,awiwissaariirnnddcacoagorgrprreopeereoammrteeaendtntbetbyfdfyoorrrrneenoffoene-rnreqe-nuqnacculeeailfffirifooieemmddsoosoutuoerrcFFkoooorrppmtmtiioo88nn-sKKsggrddaraaanttnetetdededdMMuuananydyde1e1r6r6t,,thh22ee0020025050.0.025 Management Stock Ownership ManagementStockOwnership Program, incorporstedbyreference rom ourForm 10-Kfo theyea endedDecem31b,2e00r4, Form of award agreement for non-qualified stock options granted under the 2002 Management Stock Program, is incorporated by reference from our Form 10-K for the year ended December 31, 2004. Owne rship m121 TTableiooffCClooennteesnt:s ((1100.1195)) 3r3MMe119f99977efGGreroennmeeeorruaanlrEEmFcmporlpemoloy1ye0ee.esKs''fSoStrtootcchkkPePuyurercachrheaasnseedePPldlaaDnn,,aeascmaemenemnd3de1be,ddett0hh0rrroo4uugghhNNoovveemmbbeerr 88,,22000044,,iissiinnccoorrppoorraatteeddbbyy ((1100..1166)) Pr33ueMrMfecBrhBeoaonascareerddPfrrlroeaesmnoislsouiuotirolFnndoudraemtctedid10oMMo-aKbanyryyf1or21rep2,ft,he2er0o0e0yn09ec9,are,rrfreeegoangadarmdreotdidniungDgeeFtcthoherdrrmeemeeb--eyy1ree0a3ar-1rQ,efex2xot0tree0ntn4shs.ieioonqnouaofrft33erMMe1n19d99e97d7GJGeunenener3ear0al,lEE2m0mp0l9po.lyoeyeeess"' SStoocckk (1017) (10.17) inPAAcuommrrcephneoadrsmanetePedndltaomnbofyfietstrhheienfnee3c3rtoMMernp1co19er99a97tr7eoGdmGebnoeyenurerreraFafleolErErmenmmpclpeo1lo0yf-ryeKoeemfessooSSutttrhooecFckykoPerPumaurrce1chh0na-adQsseeedfPoPDlrleaatnnhrenaappbqppuerraroorvvte3eer1dd,eoo2nnn0d0eFF9dee.bbJuurunaaerryy3099,,,222000011900. iss (((111000.111988))) i3A3nMMcmoVVerIpIonPPrEadExtxecmdceoeesbsfsysn3PrPMtellafaennVreIsisnPciineEnxccfoocrreorppsmoosrroPaatutueernddFbboyyrmirreneffc1ee0orr-reeKnpnccofeeorfrafrrttoohbemmeydyooreuuearfrreFFerooennrrdcmeme8d8f-D-rKKoedcmdeoeamteebddeFNrNoo3orv1vme,e2m-m0b0Kbe9erd.r 11e44d,,22N00o00v88e..rnbee24,2009. (1020) (10.19) (10.20) A3733MMm1V9eV2nIIdPPomn((eFVVnoootrllumounfnt3StaaM.rry,y VfIInlnIvvePeedsEsottxmmnceeeNnnstostPvPPaellraman)nb)eihPsrlisun1sc3iois,sr2pii0non0ccr.aootrreppdoorbraaytteerddebfbeyyrerrenefcfeeerrfeernnoccmeefofrouormmFRoeRrgemigsit8srt-rKaattidiooannteSSdatNatteoemmveeenmnttbNNeoro.2.3433,3323-0-09. (((111000.222121))) AA73m3Mme1Dn9een2dfdmomoenenrFntdotCroomoffm33pSMeM-8nV,VsIfaIiPtlPeidPPollnouunsPslNiiasonivn,neccamoosrrabppmeoorerran1at3dte,dde2bdb0yty0hr1rere.fofeuergreehnnFcceeebffrurooammroyou2ur0r0FF8oorrimms i88n-KcKodrdpeaotredadtNeNodobvvyeermmebfbeeerrre11n44c,,e2f200o00m88.our (10.22) (1029) F3FAMoomrremmDnde88fm-KeKerdrndeatdatoteCefddo3mFFMeepDbberernuufsaaearrrtyyiroe11nd44,P,C22ola0m0n0p08,e8.an.ssaatmieonndePdathnriouignhcoFrepobrrautaerdyb2y0r0e8f,eirseinncceorrpoomraoteudrbFyo ref rm erence from 8. dated our (10.23) (1029) NAN3oMomvvDeeeenmmfdbobmereremrne11td44oC,,of22m300pM00e88n.D.saetfeirornedBCxocmepsePnlsaantioninPcloarnpoisraitnecdobrpyorraetfeedrebnycreefreormenocuerfrFoomnou1r0F. ofrmor8t-hKeydeaaterdended (10.24) (1029) D3D3MeMeccPeeDemmrebffbeeoerrrrrme33da11n,,Cc22oe00m00A99pw,.eanrsdastDioenfeErxrceedsCs oPmlpaennissaitnicoonrpoPraatnedibiyncroerfpeorernacteedfbroymrefoeurrenFcoersmfo1m0-KufroFr othrem ye1a0rKefnodretdhe (10.25) (1026) y3y3eeMMaarrPEeexenncrddfooeuertddmDiDveaecencceAeenmmnbAubeawerlraIr33dn11cs,,e2D2n0t0e0i0f9ev9.re.rPeldanCosmipnecnosraptoiroantePdlabny is incorporated referencefrom by reference from ou aur Form 8Kdated r Form 10-K for May 14,2007. t he (1027) (10.26) (10.27) PFeoF3rMrofrmomErxmooeaffcnAAucgtgiervrUeeeeneAmmietnennntlutafafnoolrrIPnsPecreierfnnfcootoirrvrmmepaoaPnrnclacateenUedUnibsinyitintrocoeorfrSrepShroaherranarceteeeAfdAwrbwaoymarrrddeossfuertoroEeFnxEoecxrecemucftur-oitimvKveedoaOOutfrfeffFidicocMerearmssyddu88ru-i,Krnin2gd0ga02t28e0.0d008M8uuannydde1er4r,332MM007. ((1100.2298)) Performance Unit Plan is incorporated by reference from our Form 8-K dated May 8, 2008. 3FMorPmerSfKordmaatnecdeMariyt1P4l,a2n,00a7. mendedthrough February 11,2007, i ncorpored byreference 3M Performance Unit Plan, as amended through February 11, 2007, is incorporated by reference frroommoouurr ((1100.2299)) FA2A0om0r8mem.nd8-mKeendtaontoeffd33MdMMaPPyemer1rff4oo,rer2mm0aa0nnn7cc.eeUUtnintit lnPlan iisiinnccoorrppoorraatteeddbbyyrreeffeerreenncceefforommouourFFoorrmm 88-KKdadtaetedd NNoovveemmbbeerr 1144,, (1030) (10.30) De2DAs0uce0grs8ucis.rpittpi1tio3on,n2oo0f0fc7chhiaasnniggneecssottroopoNNrooavnte-EEbmmypplrloeoyfyeeereeeDnDicceirfcerctotoomrroCCuoormmpFepnoesrnamst1ait0oio-nn0aafnnoddrtSShoteoccqkkuOaOrwtwneernreesrnshdhieippdSGGeuuipditdeeelmliibnneeesrsd3da0at,te2ed0d0aa7ssooff ((1100.3311)) DeADsoceumrsgciurptsitptrit1ioo3Fn,no2roof0mf0cc7BhhaKiasnndgigneeecssodtroopoA33ruMMagtCueCosdmotbpm8ye,pnr2ese0naf0estra5iet.oinoncnePlPfarlaonnmffooorrurNNoFonon-r-mEEmmp1lp0ol-oQyyeefeoeDriDtrhierecetqcotuorarsrstieissr ieinncndoerdcpoSoreaptretedmbpbybyrerrreea3ffe0er,rtee2nn0dcc0ee7. ((1100.3322)) 3M Compensation la for NonEmployeeDirectors, from our Form 8-K dated August 8, 2005. 3M Compensation Plan for Non-Employee Directors, aas maemnednededd,, tthhrroouugghh NNoovveemmbbeerr 88,, 22000044,, is iinnccoorrppoorraatteedd Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_11Ok.htm ante 112/114 7157588..00111122 zane 1/13/2018 (1033) (10.33) (1039) (10.34) ((1100.3355)) ((1100.3366)) (1037) (10.37) ((1100.3398)) (((111000.343909))) (10.40) (1041) (10.41) (1042) (10.42) ((1100.4433)) Migsohcivesadg OGatTIOOIOUSEHIAOIO20T80A_HSOk hom bbAyymrreefeenredfnchmetetopefrsfrr:oon//m3mwMetowouwnuCr.sroFemcFcopo.greeronmmvs/Aa11tr0c0ih-o-Kivfnefoslo/eratdthgheaefryo/ydreeaaNatarro/e6ne6neE7d4med0pd/lDODo0y0eee1c1eec0m4Db6ii5er9re13b3c111t0,o,e02r27008i0r40454i/.a1n1-2c06o0_r11bOpyk.ohrtemfreraencte ferodm our AF3FooMmrrmemEnx8d8c.-moKuetnddvatatetoeefddLife 3NNMoovIvCneeosmmumbrbaepenerrcne11sP44a,l,tia22on00n,00sP8.sl.aanmfeonrdNeodn,-EsminpcloorypeoeraDtierdebctyorrsefiseriennccoerfprooramtoeud by F reference from our orm 10Kfortheyear 3eeSnMnddueeEddxmDDeceeucmcoteeifvmmaebPbeeLerrrrisfo33eny11aI,,ln22sF00ui00r3na3.na.ncceiPalaPnl,aansianmgeSndeedr, ivs oiinrcc3orMeporEaxteecdutbiyvreesfesreincnecfroomropubroyFrorreamfetr1ee0n-cdKe fforrotmheouyrear 3FFSMoourrmpmmmli11ac0r0y-yKKoofonfforPrrteetrhihsemeoybnyeuaearlasFreeiemnnneaddnneetcddoiDafDl ePeicnlacecnemnnetbiinevmgre3p3Sb1a1e,y,r2emv20ie0c0rn0e33ts..sf or i 3M Executives is incorporated incorporstedbyreference rom by referenc urForm e from our 10-Kforthe y3AyeeMaarrmpeeonnliddeceeyddiDonDnendceRrceeedesimmmtbabbeteeurerrds33ed311m,,Me22n00Nt00o66on.fgiunacleinfteivdePpeanysmioenntslaisninicsoircpoorraptoerdtbeydrebyferreenfecreefnrcoemfrooumroFuorrmFo1r0m-K8fKodr athteed ADADemecceemenmmdbbeeeedrrsa22nnn33dd,,RR2e2d0s0e0ts08ta8ae.tteeddd33MM Nonqualified Pension Nongualified Pension Plan I is lan11 i incorporated by reference incorporatedbyreference from fom our Form urForm 8-K dated 5.Kdated ADD3eMmecceeeNnmmodbnbegeedurraal22ni33df,,iR22e00de00s8P8t.ae.tnedso3nMPlNaonnquiailifinedcPeonsrionpbPyloarnerfIIeariesnticnecfeorropdmoraotuerd Fboyrrmef-erKendceefdromNooveurr nFboerrm184-,K20d08at.ed EEm3eMfpmilpeNolnoyocymnemqeunefanrtltoaifmagiogreurdeereePmmeFeonenrsntmitod8ndaa-tPteKeladddna1aItsIoeIodfifsDDDeienecccceeoemmrpbmboeberrera9t66re,,d222b000y000,55re,bfbeeertetwwneceeeennfr33oMMm and George. Bucis ikncorlporaetedyby our Form 8-K dated November 14, 2008. and George W. Buckley is incorporated by rAA{emmfeeenrnendndmcmceenefntroto,,mbdyeariorteeueddfrpeFAAroueurgnogmacuses8ttr-rK11o44m,d,t2oa20tu00ee0r6d6,FD, odteoocreeemm1mp0lbp-eoloQryyfm9m,eo2net0nth0te5aag.gqrureeaeertmmeerenntetnbbdeeetwdweSeeeenpni33mMMbeasrnn3dd0GG,eeo2o0rr0gg6ee.WW.. BBuucckklleeyy iiss oAiAunmmcroeFernonpdrodmmrmaeteen.dntKttbtdooyaEEtrmmeepfdpelDrlooeeynycmcmeeemenfnbrttoeAmArggr1or7eeu,eer2mmF0e0oen8nrt,mt bbe1et0tw-wQeeeefnnor33tMMheaanqndudaGGreteeoorrreggneedWeWd.. Buckley is September Buckley is incorporated 30, 2006. incorporated by by efcenc reference fom from EEmorupmrelpFoloofyrymmmeefenr8nr-otKtmaaegodgraurneetreeeFdmmcoeDernnemettcd1edam0att-ebeddKeraaf1soo7ro,ftf2haJ0ea0nyn8eu.aaarreyr2n23dy3,e,2d20D0002e2,,bcbeettewweme3ee1nnb,332eMM0r0aa1nndd PPaattrriicckk DD.. CCaammppbeblelll iis iinnccoorrppoorraatteedd bbyy reference from our Form 10-K for the year ended December 31, 2001. nm122 `TabTle oofifCCoolmneteesnt:s ((1100.4494)) oAAummreeFnnodrdmmme8enntKtttdooaEEtmmepdpllNooyyommeevnntteAAgm1gr3rebe,eemm2e0ee0nrn8tt.bbeettwweeeenn 33MM aanndd PPaattrricikc DD.. CCaammppbbeelllliss iincnocrpoorartepdbobyyrrreaeffeetrreeennccdee ffrroomm ((1100.4455)) AAopoupprmopFioooniunrtrmtmmeF8enon-trKtmaadnn8addtKCeCoddmoaNptmeeopdnvesenJmasutablotyeor2rry3y1a,8ar,2rrr02aa00nn80gg,8ee.mmenentstsbbeettwweeeenn 33MMaannddDDaavviidd WW.. MMeellineeaarre iincnorcpoorartedpbbyeyrrreeffaeerrteenndccee (1046) (10.46) rPfProooolmmlicoiyoucouornyrnFFRRooerreimmmib81mu-0Kr-bsQeddmuateeernddtsoJouAfeflIyImnun2ccee3egn,nnt24tiui,0vtv02ees80CC.1oto0mm.ppeennssaaitioonn efcive (effective May May 11,2010) 11, 2010) is is incorporatedby incorporated by reference reference (1047) (10.47) FiFf2rvi0ove7me-.-yyoeeuaarrrFccroreredmdiitt1sa0gg-rQreeeedmmaeteenndtt asof Apri30, 200,i August 4, 2010. as of April 30, 2007, is iinnccoorrppoorraatteedd bbyyrreeffeerreennccee frroommoouurrFFoorrmm S8-KKddaatteeddMMaayy33,, (1048) (10.48) Re2RCg0ieo0sgm7tisr.ptartaaitnioaonynRRIiniggdhhetptssenAAdggerrneeteemFmeienntdtauascooifofaAfAutrughygueus3tstM44,,E22n000p09l9,o,ybbeeeetwweReeeetnnir33eMMmeCnCotomImpnpacaonnmyyesaPnnldadnS,SstiaseteiSnScttorerepeeotrDBaatarendkkbayandrdeTfTreurrsuetsnt.ce omour Form 6Kdated August 5, Company as Independent Fiduciary from our Form 8-K dated August 5, 200. of the 2009. 3M Employee Retirement Income Plan, is incorporated by reference FFiilleeddhheerreewwitihth,, iinn addin additionttooeimtemss ssppeeciiffiecaalllyy iiddeennttiiffiieedd sahboovvee:: @((11D22))) CaClSaculubclsuailtaditaioroninsooofffrtaahtieoRooefgfciesuatmrrinaninntgg.ssttoo ffiixxeeddcchhaarrggeess.. ((((223431)))) CCSoPuonobnswsseieednrnitoatorfofiaeiftsninodomdefeeptpyhee.enndRdeeenngttirsrteerggainisstt.terreedd ppuubblliiccsaccccoouunnttiinog ffirrmm.. GLI)(24) (31.1) PCUCeSoer.wrttCiie.ffriiccoSaafettiicaoottntnioooornfnfet1thyh3e.5e0C,ChiheieffEExxeeccuutitivvee OOffffiicceerppuurrssuuaanntt tfoo SSeeccttiioonn 330022oofftthheeSSaarbbanaesn-Ocxlsey-AAcOtctoroffl22e0000y22,, 1188 ((3311.22)) UCUCeSe.rS.ritC.iCi,fci.caSSateteiiccoottnniioooonnfft11th3h3e5e50C0,Ch. hiieefFFiinnaanncciiaall OOffffiicceerr ppuurrssuuaanntt tSoeScetcitioonn 330022ooff thheeSSvabrabnaneses-OOxlxeleyy AAcctt ooff2200022,, 1188 ((3322.11)) UCCUeSe.rSrtCt.iiC.ffii.ccSSaaetteiiccoottnniioooonnfft11thh33ee05C0,Ch.iheifefEExxeeccuutitivvee OOffffiicceerrppuurrssuuaanntt tfoo SSeeccttiioonn 390066oofftthheeSSaarbbanaesn-Ocxlsey-AAcOcttxooffl22e0000y22,, 1188 ((3322.22)) UCUCeSe.rS.ritC.iCi.fci.caSSateteiiccoottnniioooonnfft13thh35ee50C0,Ch. hiieefFFiinnaanncciiaall OOffffiicceerr ppuurrssuuaannttftooSSeeccttiioonn 990066ooff thheeSSvabrabnaenses-OOxxlleeyy AAcctt ooff22000022,, 1188 ((110011)) ThUTDehe.Scef.eCofmol.blllSeooerwwci3itnni1ogg,nf2fi1in0n3a1a5nn0c0ic.laialelidinnwfioftrmohtarhtiemoSnaEffrCtrooimmono33FMnMeCbCrouomamprayp1na6ny,y'2'ss0A1A1mn,nuufloarlRmReaetpptoeordrttoionnnEFxFtooerrnmmsi11b0-l0Ke-KBfuofsorirtnthehesesppeRererieioorddteiennnddgeedd DL2L0aae0nnc8gge,uumaiabgg)eeert((3hX1XCB,oB2Rn0LsR1o)0L:l,i()fid)ialttethhdeeedwBCCoiotinhnssltoholeleiiddSSaaEttheeCeddeoSSntsatFtoeeafmbDretuenacetroyeofmmf1bI6ence,co2rno30mm11te1e,f,2fofo0or1rttm0hhaeeanytytdeee2daa0rsis0ne9enEn,dxdetieeddn)sDDtibheelceeCeBomnubscseoirln3ie3e1ds1,as,2tR20em0de11p00Sob,,tr2ta2it0n0ee0g0m99eanratnoddf (Changes in EquityandComprehensiveIncome or theyearsendedDecember31,2010,2009 and2008, )the 2008, (ii) the Consolidated Balance Sheet as of December 31, 2010 and 2009, (iii) the Consolidated Statement of Changes in Equity and Comprehensive Income for the years ended December 31, 2010, 2009 and 2008, (iv) the Pigs eihciesodgroTADOIOSHIOOTASA-2060_1OkMo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_11Ok.htm 7175588..00111133 ante 113/114 zane 1/13/2018 Migsohcivesadg OGotTIOOIOSEHIAOIO20T80A_HSOk om https://www.sec.gov/Archives/edgar/data/66740/000110465911007845/a11-2060_110k.htm CCoonnssoolliiddaitcedd FSitnaanctiael oSmtfeaCtnaestmhenFtl*sows fo he yearsendedDecember 31, 2010, 2009, and 200, Consolidated Statement of Cash Flows for the years ended December 31, 2010, 2009, and 2008, aannd (d4v)) NNootteess 0to Consolidated Financial Statements.* b*"ePPudurrssueaunatnet1toto RRmbuuell"eeee440d0d6"6T oofoffrRRpeegguuullsrattiipooonnofSS-S-sTTe,c,ettthihsoeenXX1BB3RRoLLf rhreeellaaEttexedcdhiinanfnfogorremmAaactttiio,oonnotiinnhEEexxrihwbiibisitte11s00u11tbtjoocttthhiiossAtAnennnslua!laRReeippooortfrtt hooyanntFFsooerrcmtmio11n0,-0eKdsshhsaahllallllnoott aobnseottsdbhbeeaeellmddeebeeeedmmxteoepddbrppeaear"srtftiyoloeffedaat"rrfoeeorggrinipseturbaraypitiooossnpesessactoaitftfeeSmreeeecnfntie,to,rpneprnr1coo8esspopieefcsctthutuecsshoEorxfraiclohtitnahegnser.grdedooAccucutmm,eoenrntotftflhileeerddwunisneedserurbtthjheeecStSetceoucrutihrtietiieleissabAAiclcitttoyorrothfhteehEaExtxcscehhcaatninoggnee,AaAcncdtt,seehxxacclleepptt as shall be expressly set forth by specific reference in such filings. m123 `TTabbllee ooffCCoomnteensts: SSIIGGNNAATTUURREESS PutProusbruseuasainngttntoeotdhrtohneertqesqbuueirihemarelbenyftsmtoohfeefSuSenncedtcteitiroossnnig11n3eo3do,r1t15h5de()dr)eooftfottdhhuelSySeeccauuutriihtioiersisEzExedxc.chhaannggeeAAccttooff11993344,,tthheeRRegeigsitsrtraanntt haassdduullyyccaauusseedd isthisrreeppoorrtt to be signed on its behalf by the undersigned, thereunto duly authorized. 3M COMPANY 3M COMPANY BByy/PPsa/PaiakitriDkc.k CD.a.mCCpaabmmeplpb.belelll SSeennioorr VViicee(PPPrrirPeenscsaiiitdprdiaeeclnnkttFDaiannn.addCnCcCahimihaleipefObffeFFflilii,nacaaenrc)ciiaall OOffffiicceerr February 16,2011 (Principal Financial Officer) February 16, 2011 Pursuantto therequirmentsof heSecuritiesExchangeActof 1934,tisprthasbensignedbelowbythefollowingpersonson behaoflthfe Registrant and in the capacities ncicated on February 16,2011 Pursuant to the requirements of the Securities Exchange Act of 1934, this report behalf of the Registrant and in the capacities indicated on February 16, 2011. has been signed below by the following persons on SpGSeiegonnragtruereeW. Buckley Chatman ofhe Bord, Presi!andCHitTPEixtleecutiveOffer(Prncipl Executive George W. Buckley DavidW.Meline CViOhcOfaefifrifPmicrceeaersnriaaodnnefddnth,DDeCiiorBrneeotccrtatooordrlr))l,ePrraensiddCenhtiafnAdcCcohuinetfiEnxgecOuftfiviceeOr f(fPircienrci(PparliAncccipoaulntEixnegcuOtfivfeice) VDLLaiiannvndciadedGGaWD.,..AACMohlvefaalfirrnmadeadono VDDDiiiirrcreeeecccPtttooorrrersident, Controller and Chief Accounting Officer (Principal Accounting Officer) MWVMiaicncmchheaaseDll.LLCF.aoEErfssefkkmleleawwn DDDDiiiirrrreeeeccccttttoooorrrr W HHBde.owrJbaaebmrrtdeeLMs..FLHHaeirerndneklkleleyll DDDDiiiirrrreeeeccccttttoooorrrr AERRodoubwbeeralrtrtdaSSM,. MM.PLeooeirdrriidssyonn DDDDiiiirrrreeeeccccttttoooorrrr ARoubleanrta .L. UPlreitecrhs DDiirreeccttoorr Robert J. Ulrich Director oPPtahatteriricpckkerDDs,.oCCnasammpnbapembleeldll,,, bbfyylsesidiggwnniiintnghgthhhieissSnaecamumreiehteihreeserteeoto,d,ddEooxescshhhaeernregebebyyCssoiimggnmtihhisisssddiooaoccunummbeennettpphuuroarsfsuuslaaunncftth(tao0tppeoorwwpeeerrrsssooonffsaa,tttoaolmrneneyytdhdueullycyaepexaxcceicteuieetesddabnbydyotthnhee hedate stated, suchpersonsconstiamtourttionftgh dirctorsof theCompany. other persons named, filed with the Securities and Exchange Commission on behalf of the date stated, such persons constituting a majority of the directors of the Company. such other persons, all in the capacities and on PatiBckByDy./CPsa/PamapitbriekclklDDA..fCCoaarmmnpebpeb-lenllFl aet Patrick D. Campbell, Attorney-in-Fact 1124 Pigs eihciesodgroTADOIOSHIOOTASA-2060_1Ok Mo https:llwww.sec.govlArch ivesledgarldata16674010001104659110078451a 11-2060_110k.htm 7157588..00111144 anne 114/114