utils/compare_summarizators.ipynb

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   "source": [
    "# !pip install rouge"
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    "from rouge import Rouge"
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    "reference = \"\"\"\n",
    "2005\n",
    "\n",
    "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.\n",
    " \n",
    "OVERVIEW\n",
    "3M is a diversified global manufacturer, technology innovator and marketer of a wide variety of products. In 2005, 3M managed its operations in seven operating business segments: Health Care; Industrial; Display and Graphics; Consumer and Office; Electro and Communications; Safety, Security and Protection Services; and Transportation. Refer to the Performance by Business Segment section for discussion of segment changes effective in the first quarter of 2006.\n",
    " \n",
    "3M’s 2005 performance demonstrated the operational strength of 3M and the value of the diversification of the 3M business portfolio. 3M’s sourcing organization and the businesses worked together to maintain customer service, while successfully managing the business to avoid supply disruptions in the face of hurricanes and shortages of key raw materials. 3M increased its dividend 16.7%, the 47th consecutive year of 3M dividend increases, and repurchased $2.3 billion of stock under its stock repurchase authorization. The combination of dividends and stock buy-backs returned a total of $3.6 billion to shareholders during 2005. 3M also acquired CUNO, a liquid filtration company.\n",
    " \n",
    "In 2005, 3M reported record net sales of $21.167 billion and record net income of $3.199 billion, or $4.12 per diluted share, compared with net sales of $20.011 billion and net income of $2.990 billion, or $3.75 per diluted share, in 2004. The combination of a 5.8% increase in net sales, including core local-currency sales growth of 4.1% (which excludes the impact of businesses acquired in the last 12 months), and declining manufacturing costs as a percent of sales, resulted in a 23.7% operating income profit margin.\n",
    " \n",
    "In 2005, income before cumulative effect of accounting change totaled $3.234 billion, or $4.16 per diluted share. As of December 31, 2005, 3M adopted Financial Accounting Standards Board Interpretation (FASB) No. 47, “Accounting for Conditional Asset Retirement Obligations” (FIN 47). The adoption of FIN 47 resulted in an after tax charge of $35 million, which is reflected as a cumulative change in accounting principle (refer to Note 1 to the Consolidated Financial Statements for more detail). In addition, during 2005, 3M completed its evaluation of the repatriation provision of the American Jobs Creation Act of 2004 and repatriated approximately $1.8 billion of foreign earnings into the U.S. pursuant to its provisions. As a consequence, in the second quarter of 2005, 3M recorded a tax expense of $75 million, net of available foreign tax credits. Combined, these two items reduced net income by $110 million in 2005.\n",
    "\n",
    "3M’s performance in 2005 was broad-based, with all seven business segments contributing to positive local-currency sales growth. Sales growth in Health Care was led by 3M’s core medical and dental businesses and strong growth in health information systems, which helped overcome the growth challenges of the pharmaceuticals and personal care businesses. Sales growth in the Industrial segment was led by industrial adhesives and tapes, as well as the abrasives businesses. The CUNO acquisition added 5.1% to Industrial sales growth.  Display and Graphics sales growth in display enhancement films used in flat-panel devices was partially offset by the continued decline in lens systems for the CRT rear projection television market along with the phase out of the commercial videotape business. Sales growth in the Consumer and Office segment was broad-based across the many channels 3M serves, most notably in the mass-market consumer and home improvement retail channels. For the Electro and Communications segment, sales growth was led by demand for 3M electronic products for the semiconductor manufacturers, along with continued strong growth in electrical products for insulating, testing and sensing. Sales growth in the Safety, Security and Protection Services segment was driven by continued strong demand for personal protection products and solutions, particularly respiratory protection products, along with strong demand for cleaning and protection products for commercial buildings. Sales growth in the Transportation segment was led by both the automotive OEM and repair markets. Refer to the Performance by Business Segment section for a more detailed discussion of the results of the respective segments.\n",
    " \n",
    "Geographically, U.S. sales revenue increased 4.9%, Asia Pacific local-currency sales (which exclude translation impacts) increased 10.6%, European local-currency sales increased 0.9%, and the combined Latin America and Canada area local-currency sales increased 1.3%. Refer to the Performance by Geographic Area section for a more detailed discussion of the results for the respective areas.\n",
    " \n",
    "Operating income in 2005 increased by 9.4% versus 2004, as all seven business segments posted increases. The combination of solid sales growth and positive benefits from corporate initiatives helped drive the increase in operating income. The Company estimates that cost reduction projects related to initiatives provided a combined incremental benefit to operating income of approximately $400 million in 2005. These initiatives contributed more than $400 million to operating income in both 2004 and 2003.\n",
    " \n",
    "3M generated $4.258 billion of operating cash flows in 2005, essentially flat when compared to 2004, and ended the year with $1.072 billion of cash and cash equivalents. In 2005, the Company utilized approximately $3.6 billion of cash to repurchase 3M common stock under its share repurchase authorization and to pay dividends, and contributed $788 million to its pension and postretirement plans. 3M’s debt to total capital ratio (total capital defined as debt plus equity) as of December 31, 2005, was approximately 19%. 3M has an AA credit rating from Standard & Poor’s and an Aa1 credit rating from Moody’s Investors Service.\n",
    " \n",
    "The Company experienced both price increases and supply limitations affecting several oil-derived raw materials in 2005, which is expected to carry forward into 2006, but to date the Company is receiving sufficient quantities of such materials to meet its reasonably foreseeable production requirements. It is impossible to predict future shortages of raw materials or the impact any such shortages would have. Hurricanes Katrina and Rita resulted in tight supply conditions and significant increases in energy costs, fuel surcharges and prices for certain natural gas and petroleum-related raw materials and their derivatives. 3M has avoided disruption to its manufacturing operations through careful management of existing raw material inventories and development and qualification of additional supply sources. 3M manages commodity price risks through negotiated supply contracts, price protection agreements and forward physical contracts. Fluctuations in foreign currency exchange rates also impact results, although the Company minimizes this effect through hedging about half of this impact. 3M will also continue, as it has for many years, to incur expenses (insured and uninsured) in managing its litigation and environmental contingencies.\n",
    " \n",
    "In 2006, 3M expects to drive profitable growth by investing in its most promising commercialization, geographic and technology opportunities, with part of this investment coming from savings generated through continuous operational improvements. The Company expects solid sales growth across the majority of its business portfolio. The Company’s long history and unique ability to match technological solutions with the needs of its customers has resulted in a steady flow of new products and solutions, with this trend expected to continue in 2006. In addition, the Company’s increasing focus on products and solutions for emerging economies, such as Asia and Eastern Europe, is expected to foster significant growth in 2006. The Company expects to increase both research and development and capital expenditures in 2006, led primarily by growth programs. Research, development and related expenses totaled $1.242 billion in 2005, or 5.9% of sales. The Company expects 2006 capital expenditures to total approximately $1.1 billion, compared with $943 million in 2005, providing the capacity to meet expected growth.\n",
    " \n",
    "While 3M anticipates solid sales growth across the majority of its businesses, sales are expected to decline in a few of its businesses. In Health Care, 3M expects continued solid growth in its core medical and dental businesses as 3M continues to invest in fast growth areas such as the alternate care segment in medical, digital dentistry, and emerging markets. However, 3M expects declines in its personal care business (which will become part of the combined Industrial and Transportation segment in 2006) and in its branded pharmaceuticals business (Health Care) to persist throughout 2006. 3M experienced a sales decline in the fourth quarter of 2005 for Metrogel-Vaginal, a women’s health care product, due to a competitive product. 3M now expects that there will be a generic substitute approved for Metrogel-Vaginal, which accounts for approximately 2% of total Health Care sales, in mid 2006. Health Care sales for 3M’s Aldara™ (imiquimod) pharmaceutical product for the actinic keratosis (a pre-cancerous skin condition) indication has and is expected to continue to fall short of expectations 3M had at the time of FDA approval and 3M is currently reassessing Aldara’s total market potential. In Display and Graphics, 3M expects the continued negative impact from the CRT rear projection lens business to continue into the first half of 2006, with sales in the second half of 2006 expected to be comparable to the second half of 2005. However, in Display and Graphics, 3M expects this decline in CRT rear projection lens sales to be more than offset by strong sales growth in display enhancement films used in flat-panel devices, such as  LCD televisions.\n",
    " \n",
    "The preceding forward-looking statements involve risks and uncertainties that could cause results to differ materially from those projected (refer to the forward-looking statements section in Item 7 and the risk factors provided in Item 1A for discussion of these risks and uncertainties).\n",
    "\n",
    "RESULTS OF OPERATIONS\n",
    " \n",
    "In 2005, local-currency sales growth was broad based, with selling prices increasing 0.6%.  Along with the benefits provided by 3M’s sourcing initiative, 3M’s pricing strategy has been key to maintaining margins in the face of significant raw material price pressure.  3M’s pricing strategy resulted in U.S. price growth of 2.5% in 2005. Internationally, selling prices declined 0.7% in 2005.  Adjusting for the price decreases in consumer electronics related businesses (LCD films and flex circuits), international pricing would have increased 0.3% in 2005. Acquisitions increased 2005 sales by 1.0%, driven by the 2005 acquisition of CUNO. Refer to both the “Performance by Business Segment” and “Performance by Geographic Area” sections for additional discussion of sales change.\n",
    " \n",
    "In 2004, core volume growth (which excludes the impact of businesses acquired in the last 12 months) was broad-based, with all seven businesses posting worldwide local-currency sales growth. Local-currency growth was led by Display and Graphics; Industrial; Consumer and Office; Safety, Security and Protection Services; and the Transportation businesses. Health Care local-currency sales increased 1.7%, as results were negatively impacted by 2003 sales from pharmaceutical and drug delivery agreements that did not repeat in 2004. Electro and Communications local-currency sales increased 2.7%, the first year of positive local-currency sales growth since 2000. Acquisitions increased 2004 sales by 0.5%, driven by the 2004 acquisitions of HighJump Software, Inc. and Hornell Holding AB. Internationally, selling prices declined 1.1%, with most of the decline coming in certain businesses that serve the electronics industry, where it is important to look at the combined impact of volume and price. On a geographic basis, local-currency sales growth in 2004 was led by the Asia Pacific area.\n",
    " \n",
    "Operating Expenses:\n",
    " \n",
    "Cost of Sales:\n",
    "Cost of sales decreased 0.8 percentage points in 2005. Cost of sales as a percent of net sales benefited from the combination of improved selling prices, favorable product mix, productivity gains, factory efficiency and sourcing, which helped offset the impact of higher raw material prices.  Raw material costs increased approximately 6.0% for 2005 when compared to 2004, with this impact mitigated through commodity hedging programs and negotiated supply contracts.  Cost of sales includes manufacturing, engineering and freight costs.\n",
    " \n",
    "The 2004 decrease as a percent of net sales was driven by a combination of higher volumes, productivity gains, ongoing benefits of corporate initiatives and positive currency impacts (including hedging impacts). While 3M raw material costs increased during the year, 3M’s global sourcing initiative was important in enabling 3M to minimize raw material cost increases during a period of commodity price inflation.\n",
    " \n",
    "Research, Development and Related Expenses:\n",
    "Research, development and related expenses as a percent of sales were flat when comparing 2005 to 2004. However, spending in dollars increased approximately 4%, reflecting 3M’s continuing commitment to fund future growth for the Company.\n",
    " \n",
    "Selling, General and Administrative Expenses:\n",
    "Selling, general and administrative (SG&A) expenses as a percent of net sales were flat when comparing 2005 to 2004. 3M continues to invest in growth programs and brand building throughout the portfolio as a means of stimulating growth. SG&A in the fourth quarter of 2005 was impacted by a pre-tax charge of approximately $30 million in connection with settlement agreements of one pending LePage’s follow-on class actions and of two individual follow-on actions, all involving direct purchasers of transparent tape. For more detail, refer to the discussion in Note 11 to the Consolidated Financial Statements.\n",
    " \n",
    "Selling, general and administrative expenses improved by 0.5 percentage points in 2004 compared to 2003. The improvement in 2004 as a percent of net sales was helped by leverage related to 3M’s strong growth in the Asia Pacific area. SG&A expenses in U.S. dollars increased in 2004, negatively impacted by currency translation and increased advertising and merchandising spending to support 3M’s strong brand portfolio. On an ongoing basis, the Company is shifting SG&A dollars toward faster-growth businesses and geographic areas.\n",
    " \n",
    "Other Expense:\n",
    "In 2003, 3M recorded pre-tax charges of $93 million ($58 million after-tax) related to an adverse ruling in a lawsuit filed against 3M in 1997 by LePage’s Inc. The pre-tax charge of $93 million is classified as “Other expense” within operating income.\n",
    "\n",
    "Operating Income:\n",
    "3M uses operating income as one of its primary business segment performance measurement tools. Operating income in 2005 was 23.7% of sales, up from 22.9% of sales in 2004 and 20.4% of sales in 2003. Operating income in 2005 grew by $431 million, or 9.4 percent, following 2004 operating income growth of $865 million, or 23.3 percent. The LePage’s Inc. lawsuit negatively impacted operating income in 2003 by $93 million, or 0.5% of sales.\n",
    " \n",
    "Interest Expense and Income:\n",
    "  \n",
    "Interest Expense: Interest expense increased in 2005 compared to 2004, primarily due to higher interest rates. The decrease in 2004 interest expense was primarily the result of lower average debt balances, partially offset by higher interest rates in the United States.\n",
    "Interest Income: Interest income was higher in 2005, benefiting primarily from higher interest rates. Interest income increased in 2004 due to substantially higher cash balances.\n",
    " \n",
    "Provision for Income Taxes:\n",
    "  \n",
    "The tax rate for 2005 was 34.0%, compared with 33.0% in 2004. During 2005, 3M completed its evaluation of the repatriation provision of the American Jobs Creation Act of 2004 (Jobs Act) and repatriated approximately $1.8 billion of foreign earnings into the U.S. pursuant to its provisions. The Jobs Act provides 3M the opportunity to tax effectively repatriate foreign earnings for U.S. qualifying investments specified by 3M’s domestic reinvestment plan.  As a consequence, in the second quarter of 2005, 3M recorded a tax expense of $75 million, net of available foreign tax credits, which negatively impacted the 2005 effective worldwide tax rate by 1.5%. A half-point tax rate reduction compared to the same periods last year is primarily attributable to the combination of the effects of the Medicare Modernization Act and the domestic manufacturer’s deduction, which was a part of the Jobs Act.\n",
    " \n",
    "The tax rate of 33.0% for 2004 was comparable to the 2003 rate of 32.9%. Income taxes associated with repatriating certain cash from outside the United States negatively impacted the 2004 and 2003 income tax rates.\n",
    " \n",
    "Minority Interest:\n",
    "  \n",
    "Minority interest expense eliminates the income or loss attributable to non-3M ownership interests in 3M consolidated entities. 3M’s most significant consolidated entity with non-3M ownership interests is Sumitomo 3M Limited in Japan (3M owns 75% of Sumitomo 3M Limited).  The decrease in 2005 related primarily to lower net income in Sumitomo 3M, while the increase in 2004 related primarily to higher net income in Sumitomo 3M.\n",
    " \n",
    "Cumulative Effect of Accounting Change:\n",
    "As of December 31, 2005, the Company adopted FASB Interpretation No. 47, “Accounting for Conditional Asset Retirement Obligations” (FIN 47). This accounting standard applies to the fair value of a liability for an asset retirement obligation associated with the retirement of tangible long-lived assets and where the liability can be reasonably estimated. Conditional asset retirement obligations exist for certain of the Company’s long-term assets. The fair value of these obligations is recorded as liabilities on a discounted basis.  Over time the liabilities are accreted for the change in the present value and the initial capitalized costs are depreciated over the useful lives of the related assets.  The adoption of FIN 47 resulted in the recognition of an asset retirement obligation liability of $59 million and an after tax charge of $35 million, which is reflected as a cumulative change in accounting principle in the Consolidated Statement of Income. The pro forma effect of applying this guidance in all prior periods presented was determined not to be material.\n",
    "\n",
    "Currency Effects:\n",
    "3M estimates that year-on-year currency effects, including hedging impacts, increased net income by approximately $115 million in 2005, $181 million in 2004 and $73 million in 2003. This estimate includes the effect of translating profits from local currencies into U.S. dollars; the impact of currency fluctuations on the transfer of goods between 3M operations in the United States and abroad; and transaction gains and losses, including derivative instruments designed to reduce foreign currency exchange rate risks.  3M estimates that year-on-year derivative and other transaction gains and losses increased net income by approximately $50 million for 2005 and $48 million in 2004. 3M estimates that year-on-year derivative and other transaction gains and losses decreased net income by $73 million in 2003.\n",
    " \n",
    "PERFORMANCE BY BUSINESS SEGMENT\n",
    "Effective January 1, 2006, 3M combined its Industrial and Transportation business segments. This new segment will leverage common markets, sales channels and customers, technologies, manufacturing facilities and selling processes. This combination will provide additional efficiencies that will be reinvested in growth. The results for the new Industrial and Transportation segment can be approximated by combining the existing Industrial and Transportation segments. In addition, during the first quarter of 2006, the Personal Care Division (2005 annual sales of approximately $600 million) within the Health Care segment transferred to the combined Industrial and Transportation segment. Segment information for all periods presented will be reclassified in 2006 to reflect the combined Industrial and Transportation segment in addition to the transfer of the Personal Care Division.\n",
    " \n",
    "Disclosures relating to 3M’s business segments are provided in Item 1, Business Segments. Financial information and other disclosures are provided in the Notes to the Consolidated Financial Statements. In 2005, 3M managed its operations in seven operating business segments: Health Care; Industrial; Display and Graphics; Consumer and Office; Electro and Communications; Safety, Security and Protection Services; and Transportation. Information related to 3M’s business segments is presented in the tables that follow. Local-currency sales (which include both core and acquisition volume impacts, plus price impacts) are provided for each segment. The translation impact and total sales change are also provided for each segment.\n",
    " \n",
    "Health Care Business (20.7% of consolidated sales):\n",
    "  \n",
    "The Health Care segment serves markets that include medical, surgical, pharmaceutical, dental and orthodontic, health information systems and personal care. Products provided to these markets include medical and surgical supplies, skin health and infection prevention products, pharmaceuticals, drug delivery systems, dental and orthodontic products, health information systems, microbiology products, and closures for disposable diapers.\n",
    " \n",
    "In 2005, Health Care reported local-currency sales growth of 2.9%. 3M’s core medical and dental businesses and health information systems businesses experienced local-currency sales growth of approximately 6%. The strength of these businesses helped overcome the sales growth challenges of the pharmaceutical and personal care businesses. Personal care, which is 3M’s diaper tape business, has experienced significant raw material price increases in some product lines over the past year, and 3M has elected to drive profits at the expense of volume in this business, which has the lowest margins in the Health Care segment. Sales of certain products within 3M’s pharmaceuticals business, primarily comprised of prescription drugs in inhalation, women’s health, and cardiovascular, are declining due to price pressure in Europe and decreased demand for some of these older products. 3M continues to generate growth in its Aldara™ pharmaceutical product, which accounts for approximately 6% of total Health Care sales. Aldara sales grew nearly 10% in 2005, and growth outside the U.S. was particularly strong. However, fourth quarter 2005 year-over-year local-currency sales declined for the first time since the product was launched in 1997. Health Care sales for 3M’s Aldara pharmaceutical product for the actinic keratois (a pre-cancerous skin condition) indication has and is expected to continue to fall short of expectations 3M had at the time of FDA approval and 3M is currently reassessing Aldara’s total market potential. Health Care continued to focus on operational efficiency, which helped drive an 8.2% increase in operating income in 2005. The Company’s agreement with Takeda Pharmaceutical Co., Ltd., announced in early 2005 and described further below, is currently the focus of the Company’s efforts to develop its immune response modifier technology while the Company reviews its other development efforts.\n",
    " \n",
    "3M received U.S. Food and Drug Administration (FDA) approval for Aldara™ (imiquimod) Cream, 5%, in 1996 for the treatment of external genital warts, in March 2004 for the treatment of certain types of actinic keratosis (a pre-cancerous skin condition), and in July 2004 for the treatment of superficial basal cell carcinoma (a common form of non-melanoma skin cancer). The patent and related rights for the imiquimod molecule are important to the Health Care Business. The original patent on the imiquimod molecule expired in August 2004, but the patent term extension runs through August 2009, with an anticipated pediatric exclusivity extension of a further six months to February 2010.\n",
    " \n",
    "In the first quarter of 2005, 3M and Takeda Pharmaceutical Co. Ltd. entered into an agreement to collaborate on a potential breakthrough treatment utilizing an immune response modifier for cervical high-risk human papilloma virus (HPV) infection and cervical dysplasia, which are known risk factors for cervical cancer.  This immune response modifier currently is in early stage clinical trials, and 3M and Takeda will share further development costs. Upon successful clinical development and regulatory approvals, the parties will commercialize jointly in the United States and Europe. Takeda will hold commercial rights in certain countries in Asia, while 3M will retain the rights in other parts of the world.\n",
    " \n",
    "In October 2003, IVAX Corporation agreed to assume exclusive rights to 3M’s branded health care respiratory products, together with related marketing and sales personnel, in nine European countries. The agreement covered QVAR™ (beclomethasone dipropionate HFA) Inhalation Aerosol, a “maintenance” medication used to prevent asthma attacks, and also covered Airomir™ (albuterol sulfate) Inhaler, a “rescue” medication used to relieve acute asthma symptoms. 3M will continue to manufacture and supply these products to IVAX. The total consideration due under the agreement, including minimum annual royalty payments, was $77 million, of which $24 million was paid in 2005, $24 million was paid in 2004 and $26 million was paid in 2003. 3M expects to receive $3 million in 2006. 3M may also receive additional royalty payments in 2010 (up to a maximum of approximately $7 million in total) if IVAX achieves certain annual sales levels. The Company recognizes the royalty revenue related to the IVAX agreement ratably over the term of the licensing arrangement.\n",
    " \n",
    "In 2004, local-currency sales in Health Care increased 1.7%, with 2004 negatively impacted by 2003 pharmaceutical and drug delivery agreements that did not repeat. Fourth quarter 2004 local-currency sales grew 5.0%, as year-on-year comparisons became more favorable. Operating income increased 9.3% to $1.123 billion in 2004.\n",
    " \n",
    "Industrial Business (18.0% of consolidated sales):\n",
    "  \n",
    "The Industrial segment serves a broad range of industrial markets, from appliance and electronics to paper and packaging and food and beverage. Products include tapes, a wide variety of coated and nonwoven abrasives, adhesives, specialty materials and supply chain execution software solutions. The August 2005 CUNO acquisition adds a comprehensive line of filtration products for the separation, clarification and purification of fluids and gases.\n",
    " \n",
    "In 2005, Industrial local-currency sales grew 9.3%. The August 2005 CUNO acquisition, whose results are included in Industrial, added 5.1% of growth in 2005. In addition to CUNO, growth was led by industrial adhesives and tapes, as well as the abrasives businesses. 3M continues to selectively raise selling prices to offset commodity raw material price pressures. Industrial continues to demonstrate strong operational discipline, as operating income grew 20.5% in 2005.\n",
    " \n",
    "In 2004, Industrial local-currency sales growth of 8.2% for the year was broad-based across major geographic areas and Industrial businesses. Acquisitions increased sales by 1.4%, driven by the February 2004 acquisition of HighJump Software, Inc., a provider of supply chain execution software. Strong local-currency sales growth helped leverage operating income growth. Operating income increased 43.7% to $610 million in 2004.\n",
    " \n",
    "Display and Graphics Business (16.8% of consolidated sales):\n",
    "  \n",
    "The Display and Graphics segment serves markets that include electronic display, touch screen, traffic safety and commercial graphics. This segment includes optical film and lens solutions for electronic displays; touch screens and touch monitors; reflective sheeting for transportation safety; and commercial graphics systems. The optical film business provides films that serve numerous market segments of the display lighting industry. 3M provides distinct products for five market segments, including products for: 1) LCD computer monitors 2) LCD televisions 3) handheld devices such as cellular phones 4) notebook PCs and 5) automotive displays. The optical business includes a number of different products that are protected by various patents and groups of patents. The remaining lifetimes of such patents, as well as patents protecting future products, range from less than a few years to greater than 15 years. These patents provide varying measures of exclusivity to 3M for a number of such products. 3M’s proprietary manufacturing technology and know-how also provide a competitive advantage to 3M independent of such patents.\n",
    " \n",
    "In 2005, Display and Graphics local-currency sales grew 4.0%, impacted by many factors. The first half of 2005 was tempered by tough year-on-year optical film comparisons, while 3M’s traffic safety systems business awaited a new highway funding bill in the U.S. and the sluggish economies in Western Europe and Japan held back growth in the commercial graphics business. Growth rebounded in the second half of 2005 as a new U.S. highway funding bill was passed in July, the economies in Western Europe and Japan started to experience some moderate growth and, as expected, 3M saw acceleration in demand for consumer electronics, especially flat-panel LCD televisions and a more normal LCD component inventory situation. This growth in the second half of 2005 drove record sales of 3M’s proprietary optical films and components despite growing pricing pressure. Display and Graphics sales growth was negatively impacted by approximately 4% in 2005 due to the continued decline in lens systems for the CRT rear projection television market along with the phase out of the commercial videotape business announced in the fourth quarter of 2004. Operating income increased 2.3% in 2005.  Operating income was impacted by the commercial videotape business phase out and decline in lens systems for the CRT rear projection television market, which negatively impacted 2005 operating income by approximately 8%.\n",
    " \n",
    "In 2004, Display and Graphics’ local-currency sales growth was 10.5%. Strong demand for 3M films that brighten the displays on electronic products, such as flat-panel computer monitors, cellular phones, notebook PCs and LCD televisions, continued to drive results in 2004. Year-on-year local-currency sales growth in the Optical Systems business was slower in the last half of 2004, primarily due to inventory channel adjustments in the LCD market. This resulted in reduced demand for 3M’s proprietary optical films and components. While this business is subject to periodic customer inventory fluctuations, 3M believes that this business will continue to be a significant growth engine for 3M. In the fourth quarter of 2004, 3M announced the phase out of its commercial videotape business, and this action, combined with a continuing decline in lens systems for the CRT rear-projection television market, negatively impacted sales and operating income. Operating income increased 27.9% to $1.133 billion in 2004.\n",
    "\n",
    "Consumer and Office Business (14.1% of consolidated sales):\n",
    " \n",
    "The Consumer and Office segment serves markets that include consumer retail, office retail, education, home improvement, building maintenance and other markets. Products in this segment include office supply products, stationery products, construction and home improvement products, home care products, protective material products (including consumer health care products such as bandages), and visual systems products.\n",
    " \n",
    "In 2005, Consumer and Office local-currency sales increased 3.4%, with broad-based growth across the many channels 3M serves. Consumer and Office experienced solid local-currency sales growth in construction and home improvement, home care and in its protective materials businesses. In the fourth quarter of 2005, sales were up slightly in local-currency terms as compared to an exceptional fourth quarter of 2004, when sales increased 8.3%, as several large retailers apparently increased their purchase rate level to meet their objectives. The continuing decline in 3M’s Visual Systems business impacted sales by approximately 2% for the year. Consumer and Office continues to drive success by combining unique functionality along with customer inspired design into new and mature products such as Scotch® Tape, Post-It® Notes, Filtrete™ Filters and O-Cel-O™ sponges. Operating income increased 6.3% in 2005.\n",
    " \n",
    "In 2004, local-currency sales growth in Consumer and Office was 6.9%. Sales growth was fairly broad-based across the many retail channels 3M serves, most notably in mass-market consumer retail and home improvement. This included strong sales growth in construction and home improvement/home care products, office supply products and stationery products. Sales increased 8.3% in the fourth quarter of 2004 as several large retailers apparently increased their purchase rate level to meet their objectives. Geographic area local-currency growth was led by the United States. Operating income increased 17.9% to $542 million in 2004.\n",
    " \n",
    "Electro and Communications Business (11.0% of consolidated sales):\n",
    "  \n",
    "The Electro and Communications segment serves the electrical, electronics and communications industries, including electrical utilities; electrical construction, maintenance and repair; OEM electrical and electronics; computers and peripherals; consumer electronics; telecommunications central office, outside plant and enterprise; as well as aerospace, military, automotive and medical markets; with products that enable the efficient transmission of electrical power and speed the delivery of information and ideas. Products include electronic and interconnect solutions, microinterconnect systems, high-performance fluids, high-temperature and display tapes, telecommunications products and electrical products.\n",
    "\n",
    "In 2005, local-currency sales in Electro and Communications increased 4.2%, with improving end market conditions and success driving existing products into new applications helping the business post its best local-currency growth since 2000. Local-currency growth accelerated in the second half of 2005, with local-currency growth in the fourth quarter of 2005 up 10.9%. Local-currency growth was led by demand for 3M electronic products for semiconductor manufacturers, along with continued strong growth in electrical products used for insulating, testing and sensing. This strong sales growth helped offset weakness in the electronic solutions and communications markets. Operating margins were 19.8% in 2005, with operating income increasing 35.4% in 2005.\n",
    " \n",
    "In 2004, local-currency sales in Electro and Communications increased 2.7%, led by electronic materials, along with electrical products for insulating, testing and sensing. Sales in the electronic solutions and telecommunications segments were negatively impacted by the general slowdown in the semiconductor industry and continued softness in the hard-line infrastructure segment of the telecommunications market. Geographically, local-currency growth in this business for 2004 was led by the Latin America and Canada area along with the Asia Pacific area. Operating income was up 18.8% to $342 million in 2004.\n",
    " \n",
    "Safety, Security and Protection Services Business (10.8% of consolidated sales):\n",
    "  \n",
    "The Safety, Security and Protection Services segment serves a broad range of markets that strive to increase the safety, security and productivity of workers, facilities and systems. Major product offerings include personal protection products, safety and security products, energy control products, cleaning and protection products for commercial establishments, and roofing granules for asphalt shingles.\n",
    " \n",
    "In 2005, Safety, Security and Protection Services local-currency sales growth was 6.9%, driven by broad-based growth across the business portfolio and geographies. The continued global threat of events such as terrorism, natural disasters, SARS and Avian flu helped raise the awareness in the general public about the importance of personal protective equipment, especially respiratory protection for overall health. Sales growth was driven by continued strong global demand for personal protection products and solutions, particularly respiratory protection products, along with strong demand for cleaning and protection products for commercial buildings. Roofing granules for asphalt shingles also experienced solid sales growth. Operating income improved 12.6% in 2005.\n",
    " \n",
    "In 2004, Safety, Security and Protection Services local-currency sales growth was 6.6%. Local-currency growth was driven by strong global demand for personal protective products and solutions, along with cleaning and protective products for commercial buildings. 3M’s acquisition of Hornell Holding AB, a European-based global supplier of personal safety equipment, added 2.3 percentage points of growth in 2004. Operating income increased 12.3% to $491 million in 2004.\n",
    "\n",
    "Transportation Business (8.4% of consolidated sales): \n",
    "  \n",
    "The Transportation segment serves markets that include automotive, automotive aftermarket, marine, aerospace and specialty vehicle markets. This segment provides components and products that are used in the manufacture, repair and maintenance of automotive, marine, aircraft and specialty vehicles.\n",
    " \n",
    "In 2005, Transportation local-currency sales growth was 5.0%, with benefits from customer-focused new products and productivity solutions driving results. One of these new products is 3M™ Paint Replacement Film, which is an alternative to using paint around car and truck windows. In the automotive aftermarket area, the 3M™ Paint Preparation System shortens paint changeover and clean-up time while also reducing the use of solvents for cleaning paint guns. Sales growth was broad based in Transportation, led by businesses that serve the automotive OEMs and auto body repair shops, despite challenges in the U.S. OEM Big-3 automotive market along with lower levels of distribution buy-in due to cash flow trade-offs by customers in the automotive aftermarket business. Operating income increased 8.1% in 2005.\n",
    " \n",
    "In March 2005, 3M’s automotive business completed the purchase from TI&M Beteiligungsgesellschaft mbH of 19 percent of I&T Innovation Technology (I&T), which was founded in Austria in 1999.  3M and I&T will collaborate to deliver flat flexible wiring systems for automotive interior applications to the global automotive market. The purchase price of approximately $55 million is reported as “Investments” in the Consolidated Balance Sheet and as “Purchases of Investments” in the Consolidated Statement of Cash Flows.  Due to its distribution involvement and voting rights, the Company is using equity method accounting for its investment in I&T. The Company has a purchase option to buy an additional 31% investment of I&T after certain conditions have been met.  This purchase option expires December 31, 2008.  The Company also has a put option, which provides the Company the right to sell back its entire ownership interest in I&T, exercisable between January 1, 2007 and March 31, 2009, unless the Company exercises its purchase option before then.\n",
    " \n",
    "In 2004, local-currency sales growth was 5.1% in Transportation. Top-line growth in this business continued to benefit from new products and solutions for customers, along with a strategy of replicating successful 3M solutions across several distinct segments of the transportation industry. Operating income increased 9.8% to $426 million in 2004.\n",
    " \n",
    "PERFORMANCE BY GEOGRAPHIC AREA\n",
    "Financial information related to 3M operations in various geographic areas is provided in Note 16 to the Consolidated Financial Statements. A summary of key information and discussion related to 3M’s geographic areas follow:\n",
    "\n",
    "While 3M manages its businesses globally and believes its business segment results are the most relevant measure of performance, the Company also utilizes geographic area data as a secondary performance measure. Export sales are reported within the geographic area where the final sales to 3M customers are made. A portion of the products or components sold by 3M’s operations to its customers are exported by these customers to different geographic areas. As customers move their operations from one geographic area to another, 3M’s results will follow. Thus, net sales in a particular geography is not indicative of end-user consumption in that geography.\n",
    " \n",
    "U.S. sales revenue increased 4.9%, with growth led by Industrial; Consumer and Office; and Safety, Security and Protection Services. Asia Pacific local-currency sales (which exclude translation impacts) increased 10.6%. All seven business segments contributed to this increase in the Asia Pacific area, with optical film being the largest growth component. Japan sales totaled approximately $2.1 billion, with local-currency sales up 3.6% from 2004. European local-currency sales increased 0.9%, with good growth in Industrial; Safety, Security and Protection Services; and Transportation. In the combined Latin America and Canada area, local-currency sales increases of 1.3% were led by Consumer and Office; Industrial; Safety, Security and Protection Services; and Transportation. Growth in Latin America was impacted by the continued decline of 3M’s CRT rear projection lens business in Mexico and the move of a flex circuits customer from Puerto Rico to Singapore. Foreign currency translation positively impacted the combined Latin America and Canada area sales by 7.4%, and the Asia Pacific area sales by 0.5%, as the U.S. dollar weakened against these currencies. Foreign currency translation had a minimal impact on European sales. For 2005, international operations represented approximately 61% of 3M’s sales.\n",
    " \n",
    "Geographic Area Supplemental Information\n",
    "  \n",
    "Employment:\n",
    "Employment increased by 2,244 people since year-end 2004. The CUNO acquisition in August 2005 added approximately 2,300 employees. The Company continues to increase headcount in faster-growing areas of the world, such as Asia Pacific, primarily to support increasing local sales. Excluding the impact of CUNO, employment has been decreasing in the United States and combined Europe, Middle East and Africa area. Sales per employee in local currencies increased approximately 4% in 2005, approximately 7% in 2004 and 8.5% in 2003.\n",
    " \n",
    "Capital Spending/Net Property, Plant and Equipment:\n",
    "The bulk of 3M capital spending historically has been in the United States, resulting in higher net property, plant and equipment balances in the U.S. The Company is striving to more closely align its manufacturing and sourcing with geographic market sales, and because approximately 61% of sales are outside the United States, this would increase production outside the United States, helping to improve customer service and reduce working capital requirements.  The 2005 decrease in net property, plant and equipment in the Europe, Middle East and Africa area was primarily due to currency translation (due to the stronger U.S dollar at December 31, 2005 when compared to December 31, 2004). Capital spending in Asia has more than doubled since 2003 as we continue to grow our presence in this region.\n",
    " \n",
    "CRITICAL ACCOUNTING ESTIMATES\n",
    "Information regarding significant accounting policies is included in Note 1 to the Consolidated Financial Statements. As stated in Note 1, the preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.\n",
    "\n",
    "The Company believes its most critical accounting estimates relate to legal proceedings, the Company’s pension and postretirement obligations, and potential asset impairment issues. Senior management has discussed the development, selection and disclosure of its critical accounting estimates with the Audit Committee of 3M’s Board of Directors.\n",
    " \n",
    "Legal Proceedings:\n",
    "The categories of claims for which the Company has estimated its probable liability, the amount of its liability accruals, and the estimates of its related insurance receivables are critical accounting estimates related to legal proceedings. Please refer to the section entitled “Accrued Liabilities and Insurance Receivables Related to Legal Proceedings” (contained in “Legal Proceedings” in Note 11 to the Consolidated Financial Statements) for additional information about such estimates.\n",
    " \n",
    "Pension and Postretirement Obligations:\n",
    "3M has various company-sponsored retirement plans covering substantially all U.S. employees and many employees outside the United States. The Company accounts for its defined benefit pension and postretirement health care and life insurance benefit plans in accordance with Statement of Financial Accounting Standards (SFAS) No. 87, “Employers’ Accounting for Pensions” and SFAS No. 106, “Employer’s Accounting for Postretirement Benefits Other than Pensions”, which require that amounts recognized in financial statements be determined on an actuarial basis. Pension benefits associated with these plans are generally based primarily on each participant’s years of service, compensation, and age at retirement or termination. Two critical assumptions, the discount rate and the expected return on plan assets, are important elements of expense and liability measurement. The assumed health care trend rate is the most significant postretirement health care assumption. See Note 10 to the Consolidated Financial Statements for additional discussion of actuarial assumptions used in determining pension and postretirement health care liabilities and expenses.\n",
    " \n",
    "The Company determines the discount rate used to measure plan liabilities as of the December 31 measurement date for the U.S. pension and postretirement benefit plans. The discount rate reflects the current rate at which the associated liabilities could be effectively settled at the end of the year. In estimating this rate, the Company looks at rates of return on fixed-income investments of similar duration to the liabilities in the plan that receive high, investment grade ratings by recognized ratings agencies. Using these methodologies, the Company determined a discount rate of 5.50% to be appropriate as of December 31, 2005, which is a reduction of 0.25 percentage points from the rate used as of December 31, 2004.\n",
    " \n",
    "As of December 31, 2005, the Company converted to the RP (Retirement Plans) 2000 Mortality Table for calculating the year-end 2005 U.S. pension and postretirement obligations and 2006 expense. The impact of this change increased the year-end 2005 U.S. Projected Benefit Obligations for pension by $385 million, the year-end 2005 U.S. Accumulated Benefit Obligations for pension by $349 million and the 2005 U.S. Accumulated Postretirement Benefit Obligation by $93 million. This change will also increase pension expenses for 2006 by $64 million and postretirement expenses by $17 million.\n",
    " \n",
    "A significant element in determining the Company’s pension expense in accordance with SFAS No. 87 is the expected return on plan assets, which is based on historical results for similar allocations among asset classes. For the U.S. pension plan, the Company’s assumption for the expected return on plan assets was 8.75% for 2005 and will remain at 8.75% for 2006. Refer to Note 10 to the Consolidated Financial Statements for information on how this rate is determined.\n",
    " \n",
    "The difference between the expected return and the actual return on plan assets is deferred and, under certain circumstances, amortized over future years of service. Therefore, the net deferral of past asset gains (losses) ultimately affects future pension expense. This is also true of changes to actuarial assumptions. As of December 31, 2005, the Company had net unrecognized pension actuarial losses of $2.676 billion and $954 million for the U.S. and International pension benefit plans, respectively, and $1.005 billion for the postretirement health care and life insurance benefit plan. These amounts represent potential future pension and postretirement expenses that would be amortized over average future service periods. The average remaining service periods for U.S. and International pension plans and the postretirement plans are 10.2 years, 14.1 years and 10.0 years, respectively.\n",
    " \n",
    "For the year ended December 31, 2005, the Company recognized total consolidated pre-tax pension expense (after settlements, curtailments and special termination benefits) of $331 million, up from $325 million in 2004. Pension expense (before settlements, curtailments and special termination benefits) is anticipated to decrease to approximately $300 million in 2006. For the pension plans, holding all other factors constant, an increase/decrease in the expected long-term rate of return on plan assets by 0.25 percentage points would decrease/increase U.S. 2006 pension expense by approximately $22 million for U.S. pension plans and approximately $7 million for  international pension plans. Also, holding all other factors constant, an increase/decrease in the discount rate used to measure plan liabilities by 0.25 percentage points would decrease/increase 2006 pension expense by approximately $31 million for U.S. pension plans and approximately $7 million for international pension plans. See Note 10 to the Consolidated Financial Statements for details of the impact of a one percentage point change in assumed health care trend rates on the postretirement health care benefit expense and obligation.\n",
    " \n",
    "Potential Asset Impairment Issues:\n",
    "3M net property, plant and equipment totaled approximately $5.6 billion at December 31, 2005. Management makes estimates and assumptions in preparing the consolidated financial statements for which actual results will emerge over long periods of time. This includes the recoverability of long-lived assets employed in the business, including assets of acquired businesses. These estimates and assumptions are closely monitored by management and periodically adjusted as circumstances warrant. For instance, expected asset lives may be shortened or an impairment recorded based on a change in the expected use of the asset or performance of the related business reporting unit. \n",
    " \n",
    "3M goodwill totaled approximately $3.5 billion at December 31, 2005, which, based on impairment testing, is not impaired. Impairment testing for goodwill is done at a reporting unit level. Reporting units are one level below the business segment level, but can be combined when reporting units within the same segment have similar economic characteristics. 3M had 18 reporting units at December 31, 2005. The majority of goodwill relates to and is assigned directly to a specific reporting unit. An impairment loss generally would be recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair value of the reporting unit. The estimated fair value of a reporting unit is determined using earnings for the reporting unit multiplied by a price/earnings ratio for comparable industry groups, or by using a discounted cash flow analysis.\n",
    " \n",
    "NEW ACCOUNTING PRONOUNCEMENTS\n",
    "As of December 31, 2005, the Company adopted FASB Interpretation No. 47, “Accounting for Conditional Asset Retirement Obligations” (FIN 47).  This accounting standard applies to the fair value of a liability for an asset retirement obligation associated with the retirement of tangible long-lived assets and where the liability can be reasonably estimated. Conditional asset retirement obligations exist for certain of the Company’s long-term assets. The fair value of these obligations is recorded as liabilities on a discounted basis. Over time the liabilities are accreted for the change in the present value and the initial capitalized costs are depreciated over the useful lives of the related assets.  The adoption of FIN 47 resulted in the recognition of an asset retirement obligation liability of $59 million and an after tax charge of $35 million, which is reflected as a cumulative change in accounting principle in the Consolidated Statement of Income. The pro forma effect of applying this guidance in all prior periods presented was determined not to be material.\n",
    " \n",
    "Effective January 1, 2006, 3M adopted SFAS No. 123 (revised 2004), “Share-Based Payment”, which requires 3M to expense stock-based compensation expense. The Company is adopting SFAS No. 123R using the modified retrospective method. All prior periods will be adjusted to give effect to the fair-value-based method of accounting for awards granted in fiscal years beginning on or after January 1, 1995. Stock-based compensation disclosures in Note 1 reflect pro forma expense of $.14 cents per diluted share in 2005. The 2006 impact of adopting SFAS No. 123R is estimated to be approximately $.16 per diluted share with an estimated $0.02 per diluted share cost in the first quarter, an estimated $0.08 per diluted share cost in the second quarter, and an estimated $0.03 per diluted share cost in both the third and fourth quarters. The pro forma impact of stock-based compensation on net income and earnings per share provided in Note 1 for the years ended December 31, 2005, 2004 and 2003, was recognized over the nominal vesting period, whereby if an employee retired before the end of the vesting period, the Company would recognize any remaining unrecognized compensation cost at the date of retirement. SFAS No. 123R requires recognition under a non-substantive vesting period approach, requiring compensation expense recognition when an employee is eligible to retire. 3M employees in the U.S. are eligible to retire beginning at age 55 and after having completed five years of service. Approximately 25 to 30% of the number of stock-based compensation awards are made to this population. The Company will change to the non-substantive vesting period approach for new stock compensation grants made after the Company’s adoption of SFAS No. 123R on January 1, 2006. Therefore, primarily beginning in May 2006 with the annual Management Stock Ownership Program grant, immediate expensing of those stock-based compensation awards granted to employees eligible to retire will result in a higher compensation expense than historically recognized in comparable prior periods. The total expense in 2006 and beyond will depend on several variables, including the number of share-based awards granted, the fair value of those awards, and the period the vesting of those awards is recognized over; therefore the actual expense may be different from this estimate.\n",
    " \n",
    "Additional information regarding these and other accounting pronouncements is included in Note 1 to the Consolidated Financial Statements.\n",
    "\n",
    "FINANCIAL CONDITION AND LIQUIDITY\n",
    "The Company generates significant ongoing cash flow. Net debt decreased significantly in 2004, but increased in 2005, primarily related to the $1.36 billion CUNO acquisition.\n",
    " \n",
    "3M believes its ongoing cash flows provide ample cash to fund expected investments and capital expenditures. The Company has an AA credit rating from Standard & Poor’s and an Aa1 credit rating from Moody’s Investors Service. The Company has sufficient access to capital markets to meet currently anticipated growth and acquisition investment funding needs. The Company does not utilize derivative instruments linked to the Company’s stock. However, the Company does have contingently convertible debt that, if conditions for conversion are met, is convertible into shares of 3M common stock (refer to Note 8 in this document).\n",
    " \n",
    "The Company’s financial condition and liquidity at December 31, 2005, remained strong. Various assets and liabilities, including cash and short-term debt, can fluctuate significantly from month-to-month depending on short-term liquidity needs. Working capital (defined as current assets minus current liabilities) totaled $1.877 billion at December 31, 2005, compared with $2.649 billion at December 31, 2004. This decrease was primarily related to a decrease in cash and cash equivalents ($1.685 billion) partially offset by a decrease in debt classified as short-term borrowings and current portion of long-term debt ($1.022 billion). The cash and cash equivalents balance was impacted by the acquisition of CUNO and repayment of debt.\n",
    " \n",
    "The Company uses various working capital measures that place emphasis and focus on certain working capital assets and liabilities. These measures are not defined under U.S. generally accepted accounting principles and may not be computed the same as similarly titled measures used by other companies.  One of the primary working capital measures 3M uses is a combined index, which includes accounts receivables, inventory and accounts payable. This combined index (defined as quarterly net sales — fourth quarter at year-end — multiplied by four, divided by ending net accounts receivable plus inventory less accounts payable) was 5.7 at December 31, 2005, down from 5.8 at December 31, 2004. Excluding CUNO, net working capital turns at December 31, 2005, were 5.8, the same as at December 31, 2004. Receivables increased $46 million, or 1.6%, compared with December 31, 2004. At December 31, 2005, the CUNO acquisition increased accounts receivable by $88 million. Currency translation (due to the stronger U.S dollar) reduced accounts receivable by $231 million year-on-year. Inventories increased $265 million, or 14.0%, compared with December 31, 2004. At December 31, 2005, the CUNO acquisition increased inventories by $56 million. Currency translation reduced inventories by $89 million year-on-year. Accounts payable increased $88 million compared with December 31, 2004, with CUNO accounting for $18 million of this increase.\n",
    " \n",
    "Cash flows from operating, investing and financing activities are provided in the tables that follow. Individual amounts in the Consolidated Statement of Cash Flows exclude the effects of acquisitions, divestitures and exchange rate impacts, which are presented separately in the cash flows. Thus, the amounts presented in the following operating, investing and financing activities tables reflect changes in balances from period to period adjusted for these effects.\n",
    "\n",
    "Cash Flows from Operating Activities:\n",
    " \n",
    "Cash flows from operating activities can fluctuate significantly from period to period, as pension funding decisions, tax timing differences and other items can significantly impact cash flows. In 2005, cash flow was essentially flat when compared to 2004. Higher net income, higher accounts payable and increased insurance receivable collections were offset by accounts receivable increases, inventory increases and other items. Product and other insurance receivables and claims increased cash flow by $122 million in 2005, benefiting from the $148 million in insurance recoveries for the breast implant matter in 2005. For a more detailed discussion of these and other legal proceedings, refer to Note 11 in the Consolidated Financial Statements of this Annual Report on Form 10-K. The category “Other — net” in the preceding table reflects changes in other asset and liability accounts. For example, in 2005, this category includes the non-cash impact of adopting FIN 47 ($35 million cumulative effect of accounting change), increases in accrued liabilities (such as the $30 million increase in liability related to legal settlement agreements), and other items.\n",
    " \n",
    "In 2005, the Company made discretionary contributions totaling $500 million to its U.S. qualified pension plan, with $200 million contributed in the fourth quarter of 2005, and $300 million contributed in the third quarter of 2005. In the third quarter of 2004, the Company made a special pension contribution to 3M’s Japanese pension plan of $155 million and a discretionary contribution of $300 million to its U.S. qualified pension plan. In the third quarter of 2003, 3M made a discretionary contribution of $600 million to its U.S. qualified pension plan. Future contributions will 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.\n",
    " \n",
    "In 2004, cash flow improvements were primarily driven by higher net income. In all periods presented, significant Company pension contributions negatively impacted cash flows. In all years, with a larger amount in 2003, a portion of the tax timing benefit relates to the tax benefit received from Company pension contributions.\n",
    " \n",
    "Cash Flows from Investing Activities: \n",
    " \n",
    "Investments in property, plant and equipment are enabling growth in diverse markets, helping to meet product demand and increasing manufacturing efficiency. These investments will continue to be primarily capacity and growth focused. For example, in December 2005, 3M announced its intention to build an LCD optical film manufacturing facility in Poland to support the fast-growing LCD-TV market in Europe and to better serve its customers. The Company expects 2006 capital expenditures to total approximately $1.1 billion, compared with $943 million in 2005.\n",
    " \n",
    "In the third quarter of 2005, 3M completed the acquisition of CUNO. 3M acquired CUNO for approximately $1.36 billion, including assumption of debt. This $1.36 billion included $1.27 billion of cash paid (net of cash acquired) and the assumption of $80 million of debt, most of which has been repaid. In 2005, the Company also entered into two additional business combinations for a total purchase price of $27 million. Refer to Note 2 to the Consolidated Financial Statements for more information on these 2005 business combinations, and for information concerning 2004 and 2003 business combinations.\n",
    " \n",
    "Purchases of investments in 2005 include the purchase from TI&M Beteiligungsgesellschaft mbH of 19 percent of I&T Innovation Technology (discussed previously under the Transportation business segment). The purchase price of approximately $55 million is reported as “Investments” in the Consolidated Balance Sheet and as “Purchases of Investments” in the Consolidated Statement of Cash Flows. Other “Purchases of Investments” and “Proceeds from Sale of Investments” in 2005 are primarily attributable to auction rate securities, which are classified as available-for-sale. Prior to 2005, purchases of and proceeds from the sale of auction rate securities were classified as Cash and Cash Equivalents. At December 31, 2004, the amount of such securities taken as a whole was immaterial to Cash and Cash Equivalents, and accordingly were not reclassified for 2004 and prior.Proceeds from the sale of investments in 2003 include $26 million of cash received related to the sale of 3M’s 50% ownership in Durel Corporation to Rogers Corporation. Additional purchases of investments totaled $5 million in 2005, $10 million in 2004 and $16 million in 2003. These purchases include additional survivor benefit insurance and equity investments.\n",
    " \n",
    "The Company is actively considering additional acquisitions, investments and strategic alliances.\n",
    " \n",
    "Cash Flows from Financing Activities: \n",
    " \n",
    "Total debt at December 31, 2005, was $2.381 billion, down from $2.821 billion at year-end 2004, with the decrease primarily attributable to the retirement of $400 million in medium-term notes. There were no new long-term debt issuances in 2005. In 2005, the cash flow decrease in net short-term debt of $258 million includes the portion of short-term debt with original maturities of 90 days or less. The repayment of debt of $656 million primarily related to the retirement of $400 million in medium-term notes and commercial paper retirements. Proceeds from debt of $429 million primarily related to commercial paper issuances. Total debt was 19% of total capital (total capital is defined as debt plus equity), compared with 21% at year-end 2004.\n",
    " \n",
    "Debt securities, including the Company’s shelf registration, its medium-term notes program, dealer remarketable securities and Convertible Note, are all discussed in more detail in Note 8 to the Consolidated Financial Statements. 3M has a shelf registration and medium-term notes program through which $1.5 billion of medium-term notes may be offered. In 2004, the Company issued approximately $62 million in debt securities under its medium-term notes program. No debt was issued under this program in 2005. The medium-term notes program and shelf registration have remaining capacity of approximately $1.438 billion. The Company’s $350 million of dealer remarketable securities (classified as current portion of long-term debt) were remarketed for one year in December 2005. In addition, the Company has Convertible Notes with a book value of $539 million at December 31, 2005.\n",
    "\n",
    "The next put option date for these Convertible Notes is November 2007, thus at year-end 2005 this debt is classified as long-term debt. At December 31, 2005, the dealer remarketable securities and $62 million of medium-term notes are classified as current portion of long-term debt as the result of put provisions associated with these debt instruments. For a discussion of accounting pronouncements that will affect accounting treatment for the Convertible Note, refer to Note 1 to the Consolidated Financial Statements for discussion of EITF Issue No. 04-08, “The Effect of Contingently Convertible Debt on Diluted Earnings per Share” and proposed SFAS No. 128R, “Earnings per Share”.\n",
    " \n",
    "Repurchases of common stock are made to support the Company’s stock-based employee compensation plans and for other corporate purposes.  On November 8, 2004, the Board of Directors authorized the purchase of  $2.0 billion of the Company’s common stock between January 1, 2005 and January 31, 2006.  In October 2005, 3M’s Board of Directors authorized the repurchase of an additional $300 million of the Company’s stock through January 31, 2006.  This increased the total repurchase authorization to $2.3 billion for the period through January 31, 2006. As of December 31, 2005, substantially all of this repurchase authorization had been utilized. Refer to the table captioned “Issuer Purchases of Equity Securities” in Part II, Item 5, for more information.\n",
    " \n",
    "Cash dividends paid to stockholders totaled $1.286 billion ($1.68 per share) in 2005, $1.125 billion ($1.44 per share) in 2004 and $1.034 billion ($1.32 per share) in 2003. 3M has paid dividends since 1916. Other cash flows from financing activities include distributions to minority interests, changes in cash overdraft balances, and principal payments for capital leases.\n",
    " \n",
    "Liquidity:\n",
    "The Company’s liquidity remains strong. Primary short-term liquidity needs are provided through U.S. commercial paper and euro commercial paper issuances. As of December 31, 2005, outstanding total commercial paper issued totaled $514 million and averaged approximately $823 million during 2005. Medium-term note shelf borrowing capacity totaled $1.438 billion as of December 31, 2005. Credit support for outstanding commercial paper is provided by a $565 million credit agreement among a group of primary relationship banks.  In March 2005, the Company replaced its 364-day credit agreement with a five-year credit agreement with similar terms. This $565 million credit facility provides up to $115 million in letters of credit ($97 million of which was utilized at December 31, 2005), with provisions for increasing this limit up to $150 million. Committed credit facilities of $53 million are in place across several international subsidiary locations.\n",
    " \n",
    "The Company believes it is unlikely that its access to the commercial paper market will be restricted. Cash and cash equivalents and certain other current assets could provide additional liquidity to meet near term obligations, if necessary. At year-end 2005, certain debt agreements ($350 million of dealer remarketable securities and $165 million of ESOP debt) had ratings triggers (BBB-/Baa3 or lower) that would require repayment of debt. The Company currently has AA/Aa1 debt ratings. In addition, the $565 million, five-year credit agreement requires 3M to maintain a capitalization ratio at no more than 0.60 to 1 at the end of each quarter. This ratio is calculated as funded debt (including all borrowed money and letters of credit utilized) to the sum of funded debt and equity. At December 31, 2005, this ratio was approximately 0.20 to 1.\n",
    " \n",
    "3M’s cash balance at December 31, 2005 totaled $1.072 billion. 3M’s strong balance sheet and liquidity provide the Company with significant flexibility to take advantage of numerous opportunities going forward. The Company will continue to invest in its operations to drive growth, including continual review of acquisition opportunities. 3M paid dividends of $1.286 billion in 2005, and has a long history of dividend increases. In February 2006, the Board of Directors increased the quarterly dividend on 3M common stock by 9.5% to 46 cents per share, equivalent to an annual dividend of $1.84 per share. In February 2006, 3M’s Board of Directors also authorized the purchase of up to $2.0 billion of the Company’s common stock between February 13, 2006 and February 28, 2007. The Company may also make additional contributions to its pension plan in the future, but exact amounts are uncertain and will depend on market conditions.\n",
    " \n",
    "Off-Balance Sheet Arrangements and Contractual Obligations:\n",
    "As of December 31, 2005, the Company had not utilized special purpose entities to facilitate off-balance sheet financing arrangements. 3M’s accrued product warranty liabilities, recorded on the Consolidated Balance Sheet as part of current and long-term liabilities, are estimated at approximately $22 million. 3M does not consider this amount to be material. The fair value of 3M guarantees of loans with third parties and other guarantee arrangements are not material.\n",
    " \n",
    "In addition to guarantees, 3M, in the normal course of business, periodically enters into agreements that require 3M to indemnify either major customers or suppliers for specific risks, such as claims for injury or property damage arising out of 3M products or the negligence of 3M personnel, or claims alleging that 3M products infringe third party patents or other intellectual property. While 3M’s maximum exposure under these indemnification provisions cannot be estimated, these indemnifications are not expected to have a material impact on the Company’s consolidated financial position or results of operations.\n",
    "  \n",
    "Contractual Obligations\n",
    "  \n",
    "Long-term debt payments due in 2006 include $350 million of dealer remarketable securities (final maturity 2010) and $62 million of medium-term notes (final maturity 2044). These securities are classified as current portion of long-term debt as the result of put provisions associated with these debt instruments. The next date on which investors can require repurchase of the Convertible Notes is 2007, thus in the above schedule this is considered due in 2007 (final maturity 2032).\n",
    " \n",
    "Unconditional purchase obligations are defined as an agreement to purchase goods or services that is enforceable and legally binding on the Company. Included in the unconditional purchase obligations category above are certain obligations related to take or pay contracts, capital commitments, service agreements and utilities. These estimates include both unconditional purchase obligations with terms in excess of one year and normal ongoing purchase obligations with terms of less than one year. Many of these commitments relate to take or pay contracts, in which 3M guarantees payment to ensure availability of products or services that are sold to customers. The Company expects to receive consideration (products or services) for these unconditional purchase obligations. The purchase obligation amounts do not represent the entire anticipated purchases in the future, but represent only those items for which the Company is contractually obligated. The majority of 3M’s products and services are purchased as needed, with no unconditional commitment. For this reason, these amounts will not provide a reliable indicator of the Company’s expected future cash outflows on a stand-alone basis.\n",
    " \n",
    "As discussed in Note 10 to the Consolidated Financial Statements, the Company does not have a required minimum pension contribution obligation for its U.S. plans in 2006. Thus, Company contributions to its U.S. and international pension plans are expected to be largely discretionary in 2006 and future years. Contractual capital commitments are also included in the preceding table, but these commitments represent a small part of the Company’s expected capital spending in 2006 and beyond.\n",
    " \n",
    "FINANCIAL INSTRUMENTS\n",
    "The Company enters into contractual derivative arrangements in the ordinary course of business to manage foreign currency exposure, interest rate risks and commodity price risks. A financial risk management committee, composed of senior management, provides oversight for risk management and derivative activities. This committee determines the Company’s financial risk policies and objectives, and provides guidelines for derivative instrument utilization. This committee also establishes procedures for control and valuation, risk analysis, counterparty credit approval, and ongoing monitoring and reporting.\n",
    " \n",
    "The Company enters into foreign exchange forward contracts, options and swaps to hedge against the effect of exchange rate fluctuations on cash flows denominated in foreign currencies and certain intercompany financing transactions. In 2001, the Company increased the amount and duration of its foreign currency hedges to help lessen year-over-year impacts and to improve the predictability of future earnings. However, this hedging program does not make 3M immune to currency impacts.\n",
    " \n",
    "The Company manages interest rate risks using a mix of fixed and floating rate debt. To help manage borrowing costs, the Company may enter into interest rate swaps. Under these arrangements, the Company agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. The Company manages commodity price risks through negotiated supply contracts, price protection agreements and forward physical contracts.\n",
    " \n",
    "A variance/co-variance statistical modeling technique was used to test the Company’s exposure to changes in currency and interest rates and assess the risk of loss in after-tax earnings of financial instruments, derivatives and underlying exposures outstanding at December 31, 2005. The model (third-party bank dataset) used a 95% confidence level over a 12-month time horizon. Based on this analysis of the Company’s interest rate risks, possible increases in interest rates would not have a material adverse effect on after-tax earnings ($2 million at December 31, 2005 and $5 million at December 31, 2004). A decrease in interest rates would have increased after-tax earnings by $2 million at December 31, 2005. Based on this analysis of the primary foreign exchange risks, possible changes in foreign exchange rates would have adversely impacted after-tax earnings by $69 million at December 31, 2005 ($61 million at December 31, 2004). A positive change in exchange rates would have benefited after-tax earnings by $66 million at December 31, 2005. When including certain commodity risks, possible changes in commodity rates would have adversely impacted after-tax earnings by an additional $4 million at December 31, 2005 (an additional $10 million at December 31, 2004). A positive change in commodity rates would not have materially impacted after-tax earnings at December 31, 2005. The model used analyzed over 20 different currencies and five commodities, but does not purport to represent what actually will be experienced by the Company. This model does not include certain hedge transactions, because the Company believes their inclusion would not materially impact the results.\n",
    " \n",
    "The global exposures related to purchased components and materials are such that a one percent price change would result in a pre-tax cost or savings of approximately $45 million per year. The global energy exposure is such that a 10% price change would result in a pre-tax cost or savings of approximately $35 million per year. Derivative instruments are used to hedge less than two percent of the purchased components and materials exposure and are used to hedge approximately 10% of this energy exposure.\n",
    " \n",
    "FORWARD-LOOKING STATEMENTS\n",
    "This Annual Report on Form 10-K, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.The Company may also make forward-looking statements in other reports filed with the Securities and Exchange Commission, in materials delivered to stockholders and in press releases.  In addition, the Company’s representatives may from time to time make oral forward-looking statements.\n",
    " \n",
    "Forward-looking statements relate to future events and typically address the Company’s expected future business and financial performance.  Words such as  “plan,” “expect,” “aim,” “believe,” “project,” “target,” “anticipate,” “intend,” “estimate,” “will,” “should,” “could” and other words and terms of similar meaning, typically identify such forward-looking statements.  In particular, these include statements about the Company’s strategy for growth, product development, market position, future performance or results of current or anticipated products, interest rates, foreign exchange rates, financial results, and the outcome of contingencies, such as legal proceedings. The Company assumes no obligation to update or revise any forward-looking statements.\n",
    " \n",
    "Forward-looking statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties. Actual future results and trends may differ materially from historical results or those reflected in any such forward-looking statements depending on a variety of factors. Discussion of these factors is incorporated by reference from Part I, Item 1A, “Risk Factors”, of this document, and should be considered an integral part of Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”.\n",
    "\n",
    "\"\"\""
   ]
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    "large_summary = \"\"\"\n",
    "0 Record net sales of $21.167 billion, record net income of $3.199 billion.  1\n",
    "Record net sales, including core local-currency sales growth of 4.1%, result in\n",
    "23.7% operating income profit margin.  2 3M’s performance in 2005 was broad-based,\n",
    "with all seven business segments contributing to positive local-currency sales\n",
    "growth.  3 Sales growth in 2005 was led by Safety, Security and Protection\n",
    "Services, Transportation segments.  4 3M generated operating cash flows of $4.258\n",
    "billion in 2005. 3M generated $4.258 billion of operating cash flows in 2005,\n",
    "essentially flat when compared to 2004.  5 3M expects commodity prices to remain\n",
    "volatile in 2006.  6 3M expects solid sales growth across the majority of its\n",
    "businesses.  7 3M expects generic substitute approved for Metrogel-Vaginal, which\n",
    "accounts for approximately 2% of total Health Care sales.  8 Price growth was key\n",
    "to maintaining margins in 2005. Acquisitions increased 2005 sales by 1.0%  9\n",
    "Acquisitions drove positive local-currency sales growth in 2005.  10 Raw material\n",
    "costs increased during the year, 3M’s global sourcing initiative was important.\n",
    "11 SG&A expenses in U.S. dollars increased in 2005 compared to 2004, negatively\n",
    "impacted by currency translation.  12 Lower average debt balances, partially\n",
    "offset by higher interest rates. 3M repatriated $1.8 billion of foreign earnings\n",
    "into the U.S.  13 Income taxes associated with repatriating certain cash from\n",
    "outside the United States negatively impacted the 2004 and 2003 income tax rates.\n",
    "14 Changes to accounting principles reflect adoption of FIN 47. Currency Effects:\n",
    "3M estimates that year-on-year currency effects increased net income by\n",
    "approximately $115 million in 2005.  15 New Industrial and Transportation segment\n",
    "will leverage common markets, sales channels, customers, technologies,\n",
    "manufacturing facilities and selling processes.  16 Health Care segment reported\n",
    "local-currency sales growth of 2.9% in 2005.  17 3M’s Health Care segment has the\n",
    "lowest margins in the segment.  18 3M and Takeda are collaborating on an immune\n",
    "response treatment for cervical cancer.  19 3M has agreed to sell its QVAR and\n",
    "Airomir respiratory products to Takeda.  20 Local-currency sales growth was broad-\n",
    "based across major geographic areas.  21 Acquisitions drove sales growth of 1.4%\n",
    "in 2004.  22 3M’s patents cover a range of technologies, including:  23 Local-\n",
    "currency sales growth in Display and Graphics was 10.5% in 2004.  24 Consumer and\n",
    "Office segment grew 3.4% in 2005.  25 Consumer and Office segment serves mass-\n",
    "market consumer, office and stationery markets.  26 Local-currency sales in\n",
    "Electro and Communications rose 4.2% in 2005.  27 Local-currency sales growth was\n",
    "led by the Latin America and Canada area.  28 Local-currency Safety, Security and\n",
    "Protection Services sales growth was 6.6% in 2005.  29 Sales growth was broad\n",
    "based in Transportation, led by businesses that serve OEMs.  30 3M has a purchase\n",
    "option to buy an additional 31% investment of I&T. The Company also has a put\n",
    "option, which provides the Company the right to sell back its entire ownership\n",
    "interest in I&T, exercisable between January 1, 2007 and March 31, 2009.  31\n",
    "Local-currency sales growth was driven by Asia Pacific, Europe, and Latin America.\n",
    "32 Foreign currency translation positively impacted combined Latin America and\n",
    "Canada area sales by 7.4%.  33 Significant accounting policies are included in\n",
    "Note 1 to the Consolidated Financial Statements.  34 Legal proceedings, pension\n",
    "and postretirement obligations, asset impairment issues.  35 Company uses\n",
    "actuarial assumptions to determine liability and expense measurement.  36 The\n",
    "Company used discount rates of 5.50% for U.S. pension plan and 5.50% for\n",
    "postretirement expense.  37 unrecognized unrecognized pension losses for the U.S.,\n",
    "International and postretirement plans.  38 Impact of one percentage point change\n",
    "in assumed health care rates on postretirement expense and obligation.  39 At\n",
    "December 31, 2005, 3M had 18 reporting units.  40 3M to adopt SFAS No. 123R on\n",
    "share-based compensation expense  41 Pro forma impact of adopting SFAS No. 123R is\n",
    "estimated to be approximately $.16 per diluted share.  42 New non-substantive\n",
    "vesting period approach for new stock compensation grants made after the Company’s\n",
    "adoption of SFAS No. 123R.  43 DropCatch DropCatch DropCatch DropCatch DropCatch\n",
    "DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch\n",
    "DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch\n",
    "DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch\n",
    "DropCatch 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884\n",
    "888-349-8884 888-349-8884 888-349-8884  44 Working capital, cash flows from\n",
    "operating, investing and financing activities.  45 Cash flows from operating\n",
    "activities can fluctuate significantly from period to period.  46 Significant\n",
    "Company pension contributions negatively impacted cash flows.  47 Cash flows from\n",
    "Investing Activities: Investments in property, plant and equipment are enabling\n",
    "growth in diverse markets.  48 Purchases of investments in 2005 included the\n",
    "purchase from TI&M Beteiligungsgesellschaft mbH of 19 percent of I&T Innovation\n",
    "Technology.  49 Cash flow from financing activities decreased in 2005 due to\n",
    "retirement of $400 million in medium-term notes.  50 $350 million of dealer\n",
    "remarketable securities (classified as current portion of long-term debt) were\n",
    "remarketed for one year.  51 Cash dividends paid to stockholders in 2005 were\n",
    "$1.286 billion. Cash flows from financing activities include distributions to\n",
    "minority interests, changes in cash overdraft balances, and principal payments for\n",
    "capital leases  52 Credit support provided by $565 million credit agreement.  53\n",
    "3M’s cash balance at December 31, 2005 was $1.072 billion.  54 Current and long-\n",
    "term liabilities include:  55 U.S. debt is classified as current portion of long-\n",
    "term debt as the result of put provisions.  56 Contractual capital commitments are\n",
    "included in the preceding table, but these commitments represent a small part of\n",
    "the Company’s expected capital spending.  57 Study assesses 3M’s exposure to\n",
    "changes in currency, interest rates and commodity prices.  58 After-tax earnings\n",
    "would have increased by $2 million if interest rates had increased.  59 Annual\n",
    "Report on Form 10-K does not include certain hedge transactions.  60 Forward-\n",
    "Looking Statements: This document may contain forward-looking statements.\n",
    "\"\"\""
   ]
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   "cell_type": "code",
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    "medium_summary = \"\"\"\n",
    "0  In 2005, 3M managed its operations in seven operating business segments: Health\n",
    "Care; Industrial; Display and Graphics; Consumer and Office; Electro and\n",
    "Communications; Safety, Security and Protection Services; and Transportation.Refer\n",
    "to the Performance by Business Segment section for discussion of segment changes\n",
    "effective in the first quarter of 2006.The combination of a 5.8% increase in net\n",
    "sales, including core local-currency sales growth of 4.1% (which excludes the\n",
    "impact of businesses acquired in the last 12 months), and declining manufacturing\n",
    "costs as a percent of sales, resulted in a 23.7% operating income profit margin  1\n",
    "Act of 2004 and repatriated approximately $1.8 billion of foreign earnings into\n",
    "the U.S. pursuant to its provisions.As a consequence, in the second quarter of\n",
    "2005, 3M recorded a tax expense of $75 million, net of available foreign tax\n",
    "credits.Combined, these two items reduced net income by $110 million in\n",
    "2005.apologetically=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-3M        3M\n",
    "s       performance     in      2005    was     broad-based, with all seven\n",
    "business segments contributing to positive local-currency sales growth.Sales\n",
    "growth in Health Care was led by 3M  2  The combination of solid sales growth and\n",
    "positive benefits from corporate initiatives helped drive the increase in\n",
    "operating income.results for the respective areas.         Operating income in\n",
    "2005 increased by 9.4% versus 2004, as all seven business segments posted\n",
    "increases.The Company estimates that cost reduction projects related to\n",
    "initiatives provided a combined incremental benefit to operating income of\n",
    "approximately $400 million in 2005.These initiatives contributed more than $400\n",
    "million to operating  income in both 2004 and 2003.                   3M\n",
    "Generated       4       258     billion of      operating       cash    flows   in\n",
    "2005  3  The Company expects solid sales growth across the majority of its\n",
    "business portfolio.The Company’s long history and unique ability to match\n",
    "technological solutions with the needs of its customers has resulted in a steady\n",
    "flow of new products and solutions, with this trend expected to continue in\n",
    "2006.In addition, the Company expects to increase both research and development\n",
    "and capital expenditures in 2006, led primarily by growth programs.Research,\n",
    "development and related expenses totaled $1.242 billion in 2005, or 5.9% of\n",
    "sales.3M now expects that there will be a generic substitute approved for\n",
    "Metrogel-Vaginal, which  4  However, in Display and Graphics, 3M expects this\n",
    "decline in CRT rear projection lens sales to be more than offset by strong sales\n",
    "growth in display enhancement films used in flat-panel devices, such as  LCD\n",
    "televisions.dispensational             The     previous        forward looking\n",
    "statements      are     subject to      risk    and      uncertainties  that\n",
    "could   be      affected        by      the     future  performance     of\n",
    "these   businesses      in      2005,   which   will    have    a\n",
    "significant     impact  on      thecompany        5  that serve the electronics\n",
    "industry, where it is important to look at the combined impact of volume and\n",
    "price.On a geographic basis, local-currency sales growth in 2004 was led by the\n",
    "Asia Pacific area.                     Operating Expenses:\n",
    "Cost    of      sales   increased       by      0.8     percent in      2005\n",
    "(       3.0     million )                (2004: 1.9     million)         (2005:\n",
    "2.1     million)*        (note 11 to the Consolidated Financial Statements),\n",
    "reflect the  6  The LePage’s Inc. lawsuit negatively impacted operating income in\n",
    "2003 by $93 million, or 0.5% of sales.The pre-tax charge of $93  is classified as\n",
    "Other expense  within operating income.The LePage  lawsuit adversely impacted\n",
    "operating  income in 2004, negatively impacted by currency translation and\n",
    "increased advertising and merchandising spending to support 3M’s strong brand\n",
    "portfolio.On an ongoing basis, the Company is shifting SG&A dollars toward faster-\n",
    "growth businesses and geographic areas.The Jobs Act provides 3M the opportunity to\n",
    "tax effectively repatriate foreign earnings for U.  7  of the Jobs Act.\n",
    "The tax rate of 33.0% for 2004 was comparable to the 2003 rate of 32.9%.Income\n",
    "taxes associated with repatriating certain cash from outside the United States\n",
    "negatively impacted the 2004 and 2003 income tax rates.覚醒         Minority\n",
    "Interest:        shapeshifterMinority interest expense eliminates the income or\n",
    "loss attributable to non-3M ownership interests in 3M consolidated entities.The\n",
    "pro forma effect of applying this guidance in all prior periods presented was\n",
    "determined not to be material.The decrease in 2005 related primarily to lower net\n",
    "income in Sumitomo 3M,  8  This new segment will leverage common markets, sales\n",
    "channels and customers, technologies, manufacturing facilities and selling\n",
    "processes.This combination will provide additional efficiencies that will be\n",
    "reinvested in growth.In addition, during the first quarter of 2006, the Personal\n",
    "Care Division (2005 annual sales of approximately $600 million) within the Health\n",
    "Care segment transferred to the combined Industrial and Transportation segment.  9\n",
    "Care reported local-currency sales growth of 2.9%.3M’s core medical and dental\n",
    "businesses and health information systems businesses experienced local-urrency\n",
    "sales growth  of approximately 6%.The strength of these businesses helped overcome\n",
    "the sales growth challenges of the pharmaceutical and personal care\n",
    "businesses.Personal care, which is 3M s diaper tape business, has experienced\n",
    "significant raw material price increases in some product lines over the past year,\n",
    "and 3M has elected to drive profits at the expense of volume  in this business,\n",
    "which has the lowest margins in the Health Care segment.Sales of certain products\n",
    "within 3M�  10  on the imiquimod molecule expired in August 2004, but the patent\n",
    "term extension runs through August 2009, with an anticipated pediatric exclusivity\n",
    "extension of a further six months to February 2010.\n",
    "In the first quarter of 2005, 3M and Takeda Pharmaceutical Co. Ltd. entered into\n",
    "an agreement to collaborate on a potential breakthrough treatment utilizing an\n",
    "immune response modifier for cervical high-risk human papilloma virus (HPV)\n",
    "infection and cervical dysplasia, which are known risk factors for cervical\n",
    "cancer.  This immune relationship modifier currently is in early stage clinical\n",
    "trials, and 3M  11  range of industrial markets, from appliance and electronics to\n",
    "paper and packaging and food and beverage.Products include tapes, a wide variety\n",
    "of coated and nonwoven abrasives, adhesives, specialty materials and supply chain\n",
    "execution software solutions.The August 2005 CUNO acquisition adds a comprehensive\n",
    "line of filtration products for the separation, clarification and purification of\n",
    "fluids and gases.                       In      2005    3       MunO\n",
    "Acquisition     of      CUNO    PLC     for     $1      million (2005:  $0.3\n",
    "million),       significantly     12  In 2005, Display and Graphics local-currency\n",
    "sales grew 4.0%, impacted by many factors.The first half of 2005 was tempered by\n",
    "tough year-on-year optical film comparisons, while 3M’s traffic safety systems\n",
    "business awaited a new highway funding bill in the U.S. and the sluggish economies\n",
    "in Western Europe and Japan held back growth in the commercial graphics\n",
    "business.Growth rebounded in the second half of 2007 as the economies in Europe\n",
    "and Asia started to experience moderate growth and, as expected, 3M saw\n",
    "acceleration in demand for consumer electronics, especially flat-panel LCD\n",
    "televisions and  13  Products in this segment include office supply products,\n",
    "stationery products, construction and home improvement products, home care\n",
    "products, protective material products (including consumer health care products\n",
    "such as bandages), and visual systems products.The continuing decline in 3M’s\n",
    "Visual Systems business impacted sales by approximately 2% for the year.Consumer\n",
    "and Office continues to drive success by combining unique functionality along with\n",
    "customer inspired design into new and mature Products such as Scotch® Tape, Post-\n",
    "It® Notes, Filtrete™ Filters and O-Cel-O™ sponges.Operating income increased 6.3%\n",
    "in 2005  14  construction, maintenance and repair; OEM electrical and electronics;\n",
    "computers and peripherals; consumer electronics; telecommunications central\n",
    "office, outside plant and enterprise; as well as aerospace, military, automotive\n",
    "and medical markets; with products that enable the efficient transmission of\n",
    "electrical power and speed the delivery of information and ideas.Products include\n",
    "electronic and interconnect solutions, microinterconnect systems, high-performance\n",
    "fluids, high,temperature and display tapes, telecommunications products and\n",
    "electrical products.apologetically=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-\n",
    "=-=-=-=-=-=-=-=-=-=-In 2005, local-currency sales in Electro and Communications\n",
    "increased 4.2%, with improving end market conditions and  15  and roofing granules\n",
    "for asphalt shingles.The continued global threat of events such as terrorism,\n",
    "natural disasters, SARS and Avian flu helped raise the awareness in the general\n",
    "public about the importance of personal protective equipment, especially\n",
    "respiratory protection for overall health.Sales growth was driven by continued\n",
    "strong\n",
    "12:44\n",
    "global demand for personal protection products and solutions, particularly\n",
    "respiratory protection products, along with strong demand for cleaning and\n",
    "protection products for commercial buildings.Roofing granule for asphalt Shingles\n",
    "also experienced solid sales growth.Operating income improved 12.6% in 2005.\n",
    "In 2005, Safety, Security  16  aftermarket business.Operating income increased\n",
    "8.1% in 2005.                          In March 2005, 3M’s automotive business\n",
    "completed the purchase from TI&M Beteiligungsgesellschaft mbH of 19 percent of I&T\n",
    "Innovation Technology (I&T), which was founded in Austria in 1999.  3M and I&Ts\n",
    "will collaborate to deliver flat flexible wiring systems for automotive interior\n",
    "applications to the global automotive market.The purchase price of approximately\n",
    "$55 million is reported as “Investments” in the Consolidated Balance Sheet and as\n",
    "17  revenue increased 4.9%, with growth led by Industrial; Consumer and Office;\n",
    "and Safety, Security and Protection Services.Asia Pacific local-currency sales\n",
    "(which exclude translation impacts) increased 10.6%.All seven business segments\n",
    "contributed to this increase in the Asia Pacific area, with optical film being the\n",
    "largest growth component.Japan sales totaled approximately $2.1 billion, with\n",
    "local-urrency sales up 3.6% from 2004.European national-currency revenue increased\n",
    "0.7%, with good growth in Industrial; Safety,  Security and  Protection Services;\n",
    "and Transportation.In the combined Latin America and Canada area  18\n",
    "requirements.  The 2005 decrease in net property, plant and equipment in the\n",
    "Europe, Middle East and Africa area was primarily due to currency translation (due\n",
    "to the stronger U.S dollar at December 31, 2005 when compared to December 31.\n",
    "2004).Capital spending in Asia has more than doubled since 2003 as we continue to\n",
    "grow our presence in this region.                              CRITICAL ACCOUNTING\n",
    "ESTIMATES           Information      regarding significant accounting policies is\n",
    "included in Note 1 to the Consolidated Financial Statements.As stated in  Note 1,\n",
    "the preparation of financial statements requires management to make estimates and\n",
    "19  The impact of this change increased the year-end 2005 U.S. pension and\n",
    "postretirement obligations and 2006 expense.Projected Benefit Obligations for\n",
    "pension by $385 million, the Year ended 31 December 2005 (2004: $349 million)\n",
    "Accumulated Postretirement benefit Obligation by $93 million and the 2005 US\n",
    "pension plan contribution by $34 million    Calculated Return on Capital Employed\n",
    "(ROCE) is defined as the return on capital employed (ROA) as defined in the\n",
    "Financial Statements, as adjusted for the impact of amortisation of acquired\n",
    "intang  20  The average remaining service periods for U.S. and International\n",
    "pension plans and the postretirement plans are 10.2 years, 14.1 years and 10.0\n",
    "years, respectively.  21  31, 2005.Management makes estimates and assumptions in\n",
    "preparing the consolidated financial statements for which actual results will\n",
    "emerge over long periods of time.This includes the recoverability of long-lived\n",
    "assets employed in the business, including assets of acquired businesses.For\n",
    "instance, expected asset lives may be shortened or an impairment recorded based on\n",
    "a change in the expected use of the asset or performance of the related business\n",
    "reporting unit.          3M       goodwill       total   goodwill        per\n",
    "share   at      31      December        2005    $3.5    billion (2004: $3.4\n",
    "billion)                  22  in accounting principle in the Consolidated\n",
    "Statement of Income.The pro forma effect of applying this guidance in all prior\n",
    "periods presented was determined not to be material.The Company is adopting SFAS\n",
    "No.123R using the modified retrospective method.All prior periods will be adjusted\n",
    "to give effect to the fair-value-based method of accounting for awards granted in\n",
    "fiscal years beginning on or after January 1, 1995.Stock-based compensation\n",
    "disclosures in Note 1 reflect pro formal expense of $.14 cents per diluted share\n",
    "in 2005.                                 3M      Annual  Report  and     Accounts\n",
    "23  those awards, and the period the vesting of those awards is recognized over;\n",
    "therefore the actual expense may be different from this estimate.refer to Note 8\n",
    "in this document).  24  by four, divided by ending net accounts receivable plus\n",
    "inventory less accounts payable) was 5.7 at December 31, 2005, down from 5.8 at\n",
    "December  31 December 2004.Excluding CUNO, net working capital turns at December\n",
    "1, 2005 were 6.8, the same as at  December 31  2004.Receivables increased $46\n",
    "million, or 1.6%, compared with December 31.2004.Inventories increased $265\n",
    "million,  14.0% compared with  December   31 Dec 2004.At December 31 , 2005, the\n",
    "CunO acquisition  25  cumulative effect of accounting change), increases in\n",
    "accrued liabilities (such as the $30 million increase in liability related to\n",
    "legal settlement agreements), and other items.             In 2005, the Company\n",
    "made discretionary contributions totaling $500 million to its U.S. qualified\n",
    "pension plan, with $200 million contributed in the fourth quarter of 2005, and\n",
    "$300 million contributed  in the third quarter                  of 2005\n",
    "to      the    qualified       pension plan    for     the     future  of      3M\n",
    ",       which   will    be      a       key     factor  in      the  26  on these\n",
    "2005 business combinations, and for information concerning 2004 and 2003 business\n",
    "combinations.The purchase price of approximately $55 million is reported as\n",
    "Investments  in the Consolidated Balance Sheet and as Purchases of Investments” in\n",
    "the  Consolidated Statement of Cash Flows.Other purchases of investments totaled\n",
    "$5 million in 2005, $10 million in 2004 and $16 million in 2003.These purchases\n",
    "include additional survivor benefit insurance and equity investments.The Company\n",
    "is actively considering additional acquisitions, investments and strategic\n",
    "alliances.  27  in more detail in Note 8 to the Consolidated Financial\n",
    "Statements.3M has a shelf registration and medium-term notes program through which\n",
    "$1.5 billion of medium -term notes may be offered.In 2004, the Company issued\n",
    "approximately $62 million in debt securities under its medium- term notes\n",
    "program.No debt was issued under this program in 2005.The medium-terms notes\n",
    "program and shelf registration have remaining capacity of approximately $1._438\n",
    "billion.The Company’s $350 million of dealer remarketable securities (classified\n",
    "as current portion of long-term debt) were remarketed for one  28  activities\n",
    "include distributions to minority interests, changes in cash overdraft balances,\n",
    "and principal payments for capital leases.         Liquidity:      The Company’s\n",
    "liquidity remains strong.Primary short-term liquidity needs are provided through\n",
    "U.S. commercial paper and euro commercial paper issuances.The Company currently\n",
    "has AA/Aa1 debt ratings.In addition, the $565 million, five-year credit agreement\n",
    "requires 3M to maintain a capitalization ratio at no more than 0.60 to 1 at the\n",
    "end of each quarter.This ratio is calculated as funded debt (including all\n",
    "borrowed money and letters of credit  29  2006, the Board of Directors increased\n",
    "the quarterly dividend on 3M common stock by 9.5% to 46 cents per share,\n",
    "equivalent to an annual dividend of $1.84 per share.The Company may also make\n",
    "additional contributions to its pension plan in the future, but exact amounts are\n",
    "uncertain and will depend on market conditions.The fair value of 3M guarantees of\n",
    "loans with third parties and other guarantee arrangements are not material.The\n",
    "next date on which investors can require repurchase of the Convertible Notes is\n",
    "2007, thus in the above schedule this is considered due in 2007 (final maturity\n",
    "2032).  30  related to take or pay contracts, capital commitments, service\n",
    "agreements and utilities.These estimates include both unconditional purchase\n",
    "obligations with terms in excess of one year and normal ongoing purchase\n",
    "obligations  with terms of less than one year.The majority of 3Ms products and\n",
    "services are purchased as needed, with no unconditional commitment.For this\n",
    "reason, these amounts will not provide a reliable indicator of the Company’s\n",
    "expected future cash outflows on a stand-alone basis.The purchase obligation\n",
    "amounts do not represent the entire anticipated purchases in the future, but\n",
    "represent only those items for which the Company is contractually obligated.A\n",
    "financial risk management  31  currency hedges to help lessen year-over-year\n",
    "impacts and to improve the predictability of future earnings.However, this hedging\n",
    "program does not make 3M immune to currency impacts.The Company manages commodity\n",
    "price risks through negotiated supply contracts, price protection agreements and\n",
    "forward physical contracts.The model (third-party bank dataset) used a 95%\n",
    "confidence level over a 12-month time horizon.Based on this analysis of the\n",
    "Company’s interest rate risks, possible increases in interest rates would not have\n",
    "a material adverse effect on after-tax earnings ($2 million at December 31, 2005\n",
    "and $5 million  32  global exposures related to purchased components and materials\n",
    "are such that a one percent price change would result in a pre-tax cost or savings\n",
    "of approximately $45 million per year.The global energy exposure is such that  a\n",
    "10%  price change  would result  in a cost or  savings of $35 million per\n",
    "year.Derivative instruments are used to hedge less than two percent of the\n",
    "purchased components  and materials exposure and are used  to hedge approximately\n",
    "10% of this energy exposure.The Company may also make forward-looking statements\n",
    "in other reports filed with the Securities and Exchange Commission, in materials\n",
    "delivered\n",
    "\"\"\""
   ]
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   "cell_type": "code",
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    "small_summary = \"\"\"\n",
    "0 OVERVIEW 3M is a diversified global manufacturer, technology innovator and\n",
    "marketer of a wide variety of products . in 2005, 3M managed its operations in\n",
    "seven operating business segments: Health Care; Industrial; Display and Graphics;\n",
    "Consumer and Office; Electro and Communications; Safety, Security and Protection\n",
    "Services; and Transportation .  1 the adoption of FIN 47 resulted in an after tax\n",
    "charge of $35 million . in 2005, 3M repatriated approximately $1.8 billion of\n",
    "foreign earnings into the united states . sales growth in health care was led by\n",
    "industrial adhesives and tapes .  2 sales growth in the Safety, Security and\n",
    "Protection Services segment was driven by continued strong demand for personal\n",
    "protection products and solutions, particularly respiratory protection products .\n",
    "sales growth was led by both the automotive OEM and repair markets .\n",
    "Geographically, U.S. sales revenue increased 4.9%, Asia Pacific local-currency\n",
    "sales increased 10.6%, European local .currencies sales increased 0.9%, and the\n",
    "combined Latin America and Canada area local - . .  3 3M’s debt to total capital\n",
    "ratio (total capital defined as debt plus equity) as of December 31, 2005, was\n",
    "approximately 19% . the Company experienced both price increases and supply\n",
    "limitations affecting several oil-derived raw materials in 2005, which is expected\n",
    "to carry forward into 2006 .  4 the Company expects to increase both research and\n",
    "development and capital expenditures in 2006, led primarily by growth programs .\n",
    "research, development and related expenses totaled $1.242 billion in 2005, or 5.9%\n",
    "of sales . 3M expects continued solid growth across the majority of its businesses\n",
    ".  5 3M expects the continued negative impact from the CRT rear projection lens\n",
    "business to continue into the first half of 2006 . however, in Display and\n",
    "Graphics, this decline in sales will be more than offset by strong sales growth in\n",
    "display enhancement films used in flat-panel devices .  6 health care local-\n",
    "currency sales increased 1.7%, the first year of positive sales growth since 2000\n",
    ". acquisitions increased 2004 sales by 0.5%, driven by the 2004 acquisitions of\n",
    "highJump Software, Inc. and Hornell Holding AB . internationally, selling prices\n",
    "declined 1.1%, with most of the decline coming in certain businesses that serve\n",
    "the electronics industry .  7 expenses as a percent of net sales were flat when\n",
    "comparing 2005 to 2004 . however, spending in dollars increased approximately 4%,\n",
    "reflecting 3M’s commitment to fund future growth for the Company . SG&A in the\n",
    "fourth quarter of 2005 was impacted by a pre-tax charge of approximately $30\n",
    "million in connection with settlement agreements of one pending lePage’s follow-on\n",
    "class actions .  8 the lePage’s Inc. lawsuit negatively impacted operating income\n",
    "in 2003 by $93 million, or 0.5% of sales . Interest income: Interest income was\n",
    "higher in 2005, benefiting primarily from higher interest rates .  9 interest\n",
    "expense eliminates income or loss attributable to non-3M ownership interests in 3M\n",
    "consolidated entities . the decrease in 2005 related primarily to lower net income\n",
    "in Sumitomo 3M, while the increase in 2004 related mainly to higher net income .\n",
    "10 3M estimates year-on-year derivative and other transaction gains and losses\n",
    "increased net income by approximately $50 million for 2005 and $48 million in 2004\n",
    ". the results for the new Industrial and Transportation segment can be\n",
    "approximated by combining the existing industrial and transportation segments .\n",
    "this combination will leverage common markets, sales channels and customers,\n",
    "technologies, manufacturing facilities and selling processes .  11 health care\n",
    "segment serves markets that include medical, surgical, pharmaceutical, dental and\n",
    "orthodontic, health information systems and personal care . in 2005, health care\n",
    "reported local-currency sales growth of 2.9% . 3M continues to generate growth in\n",
    "its aldaraTM pharmaceutical product, which accounts for approximately 6% of total\n",
    "health care sales .  12 health care sales for 3M’s aldara pharmaceutical product\n",
    "for the actinic keratois (a pre-cancerous skin condition) indication has and is\n",
    "expected to continue to fall short of expectations 3M had at the time of FDA\n",
    "approval . health Care continued to focus on operational efficiency, which helped\n",
    "drive an 8.2% increase in operating income in 2005 .  13 takeda will hold\n",
    "commercial rights in certain countries in Asia, while 3M will retain the rights in\n",
    "other parts of the world . the agreement covered QVARTM (beclomethasone\n",
    "dipropionate HFA) inhalation Aerosol, a “maintenance” medication used to prevent\n",
    "asthma attacks . 3M expects to receive $3 million in 2006 .  14 the August 2005\n",
    "CUNO acquisition adds a comprehensive line of filtration products for the\n",
    "separation, clarification and purification of fluids and gases . in 2005,\n",
    "Industrial local-currency sales grew 9.3% . the abrasives businesses continued to\n",
    "raise selling prices to offset commodity raw material price pressures .  15 the\n",
    "remaining lifetimes of such patents range from less than a few years to greater\n",
    "than 15 years . these patents provide varying measures of exclusivity to 3M for a\n",
    "number of such products . in 2005, Display and Graphics local-currency sales grew\n",
    "4.0%, impacted by many factors .  16 year-on-year local-currency sales growth in\n",
    "the Optical Systems business was slower in the last half of 2004 . this resulted\n",
    "in reduced demand for 3M’s proprietary optical films and components . in the\n",
    "fourth quarter of 2004, 3M announced the phase out of its commercial videotape\n",
    "business .  17 continuing decline in 3M’s Visual Systems business impacted sales\n",
    "by approximately 2% for the year . consumer and office continues to drive success\n",
    "by combining unique functionality along with customer inspired design into new and\n",
    "mature products .  18 local-currency growth accelerated in the second half of 2005\n",
    ". local growth was driven by demand for 3M electronic products for semiconductor\n",
    "manufacturers . strong sales growth helped offset weakness in electronic solutions\n",
    "and communications markets .  19 sales growth driven by strong global demand for\n",
    "personal protective products and solutions . Roofing granules for asphalt shingles\n",
    "also experienced solid sales growth . operating income increased 12.3% to $491\n",
    "million in 2004 .  20 sales growth was broad based in Transportation, led by\n",
    "businesses that serve the automotive OEMs and auto body repair shops . operating\n",
    "income increased 8.1% in 2005 . 3M and I&T will collaborate to deliver flat\n",
    "flexible wiring systems for automotive interior applications to the global\n",
    "automotive market .  21 information related to 3M operations in various geographic\n",
    "areas is provided in Note 16 to the Consolidated Financial Statements . the\n",
    "Company believes its business segment results are the most relevant measure of\n",
    "performance . a portion of the products or components sold by 3M’s operations to\n",
    "its customers are exported to different geographic areas .  22 for 2005,\n",
    "international operations represented approximately 61% of 3M’s sales . employment\n",
    "increased by 2,244 people since year-end 2004 . CUNO acquisition in august 2005\n",
    "added approximately 2,300 employees .  23 the Company believes its most critical\n",
    "accounting estimates relate to legal proceedings, the Company’s pension and\n",
    "postretirement obligations, and potential asset impairment issues . the categories\n",
    "of claims for which the Company has estimated probable liability, the amount of\n",
    "its liability accruals, and the estimates of its related insurance receivables are\n",
    "critical accounting estimations related to legal proceeding .  24 the assumed\n",
    "health care trend rate is the most significant postretirement health care\n",
    "assumption . the Company determined a discount rate of 5.50% to be appropriate as\n",
    "of December 31, 2005, which is a reduction of 0.25 percentage points from the rate\n",
    "used in December 31, 2004 .  25 postretirement Benefit Obligation will increase\n",
    "pension expenses for 2006 by $64 million . postretiment expenses will decrease to\n",
    "approximately $300 million in 2006 . a significant factor in determining the\n",
    "Company’s pension expense is the expected return on plan assets .  26 an\n",
    "increase/decrease in the expected long-term rate of return on plan assets by 0.25\n",
    "percentage points would decrease/increase 2006 pension expense by approximately\n",
    "$22 million for U.S. pension plans and approximately $7 million for international\n",
    "12:54\n",
    "pension plans . the majority of goodwill totaled approximately $3.5 billion at\n",
    "December 31, 2005 .  27 the majority of goodwill relates to and is assigned\n",
    "directly to a specific reporting unit . the estimated fair value of a reporting\n",
    "unit is determined by earnings for the reporting unit multiplied by a\n",
    "price/earnings ratio for comparable industry groups, or by using a discounted cash\n",
    "flow analysis .  28 stock-based compensation disclosures in Note 1 reflect pro\n",
    "forma expense of $.14 cents per diluted share in 2005 . the 2006 impact of\n",
    "adopting SFAS No. 123R is estimated to be approximately $.16 per share . if an\n",
    "employee retired before the end of the vesting period, the Company would recognize\n",
    "any remaining unrecognized compensation cost at the date of retirement.  29\n",
    "FINANCIAL CONDITION AND LIQUIDITY The Company generates significant ongoing cash\n",
    "flow . net debt decreased significantly in 2004 but increased in 2005, primarily\n",
    "related to the $1.36 billion CUNO acquisition . 3M believes its ongoing cash flows\n",
    "provide ample cash to fund expected investments and capital expenditures .  30 the\n",
    "Company uses various working capital measures that place emphasis on certain\n",
    "working capital assets and liabilities . these measures are not defined under U.S.\n",
    "generally accepted accounting principles and may not be computed the same as\n",
    "similarly titled measures used by other companies .  31 in 2005, cash flow was\n",
    "essentially flat when compared to 2004 . product and other insurance receivables\n",
    "and claims increased cash flow by $122 million in 2005 . the category “Other —\n",
    "net” in the preceding table reflects changes in other asset and liability accounts\n",
    ".  32 a portion of the tax timing benefit relates to the tax benefit received from\n",
    "Company pension contributions . the Company expects 2006 capital expenditures to\n",
    "total approximately $1.1 billion, compared with $943 million in 2005 .  33 of\n",
    "approximately $55 million is reported as “Investments” in the Consolidated Balance\n",
    "Sheet . other “Purchases of Investments” are primarily attributable to auction\n",
    "rate securities, which are classified as available-for-sale . prior to 2005,\n",
    "purchases of and proceeds from the sale were classified as Cash and Cash\n",
    "Equivalents, and accordingly were not reclassified for 2004 and prior .  34 debt\n",
    "securities, including the Company’s shelf registration, its medium-term notes\n",
    "program, dealer remarketable securities and Convertible Note, are all discussed in\n",
    "more detail in Note 8 to the Consolidated Financial Statements . in 2004, the\n",
    "Company issued approximately $62 million in debt securities . no debt was issued\n",
    "under this program in 2005 .  35 cash dividends paid to stockholders totaled\n",
    "$1.286 billion in 2005, $1.125 billion in 2004 and $1.034 billion in 2003 . other\n",
    "cash flows from financing activities include distributions to minority interests,\n",
    "changes in cash overdraft balances and principal payments for capital leases .  36\n",
    "at year-end 2005, certain debt agreements had ratings triggers (BBB-/Baa3 or\n",
    "lower) that would require repayment of debt . the $565 million, five-year credit\n",
    "agreement requires 3M to maintain a capitalization ratio at no more than 0.60 to 1\n",
    "at the end of each quarter .  37 warranty liabilities, recorded on the\n",
    "Consolidated Balance Sheet, are estimated at approximately $22 million . the fair\n",
    "value of 3M guarantees of loans with third parties and other guarantee\n",
    "arrangements are not material . 3M periodically enter into agreements that require\n",
    "3M to indemnify major customers or suppliers for specific risks .  38 the majority\n",
    "of 3M’s products and services are purchased as needed, with no unconditional\n",
    "commitment . these amounts will not provide a reliable indicator of the Company’s\n",
    "expected future cash outflows on a stand-alone basis . the Company does not have a\n",
    "required minimum pension contribution obligation for its U.S. plans in 2006 and\n",
    "future years .  39 in 2001, the Company increased the amount and duration of its\n",
    "foreign currency hedges to help lessen year-over-year impacts and improve the\n",
    "predictability of future earnings . however, this hedging program does not make 3M\n",
    "immune to currency impacts .  40 a positive change in commodity rates would have\n",
    "adversely impacted after-tax earnings by an additional $4 million at December 31,\n",
    "2005 . the model used analyzed over 20 different currencies and five commodities,\n",
    "but does not purport to represent what actually will be experienced by the Company\n",
    ".  41 forward-looking statements are based on assumptions and expectations of\n",
    "future events and trends that are subject to risks and uncertainties . actual\n",
    "future results and trends may differ materially from historical results or those\n",
    "reflected in such forward looking statements depending on a variety of factors .\n",
    "\"\"\""
   ]
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    "gpt_summary = \"\"\"\n",
    "0 In 2005, 3M achieved record net sales of $21.167 billion and record net income\n",
    "of $3.199 billion. They demonstrated operational strength and value through their\n",
    "diversified business portfolio. They increased their dividend for the 47th\n",
    "consecutive year, repurchased $2.3 billion of stock, and returned a total of $3.6\n",
    "billion to shareholders.  1 In 2005, 3M adopted a new accounting standard which\n",
    "resulted in a charge of $35 million and repatriated $1.8 billion of foreign\n",
    "earnings into the US, resulting in a tax expense of $75 million. Despite these\n",
    "factors, 3M saw positive sales growth in all seven of its business segments, with\n",
    "particular strength in the health care, industrial, and consumer and office\n",
    "segments.  2 In 2005, the company experienced sales growth in various segments,\n",
    "including semiconductor manufacturing, safety and protection services, and\n",
    "transportation. Geographically, sales revenue increased in the U.S., Asia Pacific,\n",
    "and Latin America/Canada regions. The company’s operating income also increased,\n",
    "driven by solid sales growth and cost reduction initiatives. Additionally, the\n",
    "company generated operating cash flows of $4.258 billion, repurchased common\n",
    "stock, paid dividends, and contributed to pension and postretirement plans.  3 In\n",
    "2005, 3M contributed $30 million to its pension and postretirement plans. The\n",
    "company’s debt to total capital ratio was approximately 19%, with a credit rating\n",
    "of AA from Standard & Poor’s and Aa1 from Moody’s Investors Service. Despite\n",
    "challenges related to raw material shortages and price increases, 3M managed to\n",
    "mitigate disruptions through careful inventory management and development of\n",
    "additional supply sources. Looking ahead to 2006, the company plans to drive\n",
    "profitable growth by investing in commercialization, geographic expansion, and\n",
    "technology opportunities, while also focusing on continuous operational\n",
    "improvements.  4 The company has a strong track record of developing and\n",
    "delivering innovative technological solutions for its customers, with a focus on\n",
    "emerging economies. While most of its businesses are expected to experience solid\n",
    "sales growth, there may be declines in a few areas such as personal care and\n",
    "branded pharmaceuticals. The company plans to increase its research and\n",
    "development and capital expenditures to support its growth programs.  5 In 2005,\n",
    "3M experienced broad-based sales growth with selling prices increasing by 0.6%.\n",
    "The company’s pricing strategy and sourcing initiative helped maintain margins\n",
    "despite raw material price pressure. International pricing declined by 0.7%, but\n",
    "would have increased by 0.3% if not for price decreases in consumer electronics.\n",
    "Acquisitions contributed to a 1.0% increase in sales.  6 In 2004, the company saw\n",
    "growth in its Health Care and Electro and Communications businesses, driven by\n",
    "acquisitions and positive local-currency sales growth. Internationally, selling\n",
    "prices declined, particularly in businesses serving the electronics industry.\n",
    "Operating expenses, including cost of sales and research and development expenses,\n",
    "were managed through improved selling prices, productivity gains, and sourcing\n",
    "initiatives.  7 In comparing 2005 to 2004, the company’s expenses as a percent of\n",
    "sales remained consistent, but there was an increase of approximately 4% in\n",
    "spending in dollars. This increase reflects the company’s dedication to funding\n",
    "future growth. Additionally, the company has made efforts to shift its selling,\n",
    "general, and administrative expenses towards faster-growth businesses and\n",
    "geographic areas.  8 In 2005, the company’s operating income increased by $431\n",
    "million, or 9.4%, following a growth of $865 million, or 23.3%, in 2004. The\n",
    "LePage’s Inc. lawsuit had a negative impact on operating income in 2003. Interest\n",
    "expense increased in 2005 due to higher interest rates, while interest income\n",
    "benefited from higher rates. The tax rate for 2005 was 34.0%, compared to 33.0% in\n",
    "2004, and the company repatriated foreign earnings in compliance with the American\n",
    "Jobs Creation Act of 2004. The tax rate reduction in 2004 was due to the Medicare\n",
    "Modernization Act and the domestic manufacturer’s deduction. Minority interest\n",
    "expense eliminates income or loss attributable to non-3M ownership interests.  9\n",
    "The company’s interest expense is primarily affected by the performance of\n",
    "Sumitomo 3M Limited, in which 3M owns a 75% stake. The decrease in interest\n",
    "expense in 2005 was due to lower net income in Sumitomo 3M, while the increase in\n",
    "2004 was due to higher net income in Sumitomo 3M. The company also adopted a new\n",
    "accounting standard related to asset retirement obligations, resulting in the\n",
    "recognition of a liability and a charge of $35 million. Currency effects,\n",
    "including hedging impacts, increased net income by approximately $115 million in\n",
    "2005, $181 million in 2004, and $73 million in 2003.  10 3M reported that\n",
    "derivative and other transaction gains and losses had a significant impact on its\n",
    "net income in the years 2003-2005, with gains increasing net income in 2005 and\n",
    "2004 and losses decreasing net income in 2003. Additionally, 3M combined its\n",
    "Industrial and Transportation business segments in 2006 to leverage common\n",
    "resources and drive growth, with the Personal Care Division transferring to this\n",
    "combined segment. Further details on 3M’s business segments can be found in Item 1\n",
    "and the Notes to the Consolidated Financial Statements.  11 The Health Care\n",
    "segment of the company serves various markets including medical, surgical,\n",
    "pharmaceutical, dental, and personal care. In 2005, the segment reported a local-\n",
    "currency sales growth of 2.9%, driven by the core medical and dental businesses\n",
    "and health information systems. However, sales in the pharmaceutical and personal\n",
    "care businesses faced challenges due to price pressure in Europe and raw material\n",
    "price increases. Sales of the Aldara pharmaceutical product, which accounts for\n",
    "approximately 6% of total Health Care sales, saw growth outside the U.S. but\n",
    "declined in the fourth quarter of 2005.  12 3M’s Aldara pharmaceutical product for\n",
    "the treatment of actinic keratosis has not met sales expectations since its FDA\n",
    "approval in 1997, leading 3M to reassess its total market potential. However, the\n",
    "company has seen an increase in operating income in 2005 due to a focus on\n",
    "operational efficiency. Additionally, 3M has entered into an agreement with Takeda\n",
    "Pharmaceutical to develop a potential breakthrough treatment for cervical high-\n",
    "risk HPV infection and cervical dysplasia.  13 In 2003, IVAX Corporation acquired\n",
    "exclusive rights to 3M’s branded respiratory products in nine European countries,\n",
    "including QVAR Inhalation Aerosol and Airomir Inhaler. 3M continued to manufacture\n",
    "and supply these products to IVAX, receiving a total consideration of $77 million.\n",
    "In 2004, 3M’s Health Care segment saw a 1.7% increase in sales, with operating\n",
    "income reaching $1.123 billion. The Industrial segment serves various markets and\n",
    "offers products such as tapes, abrasives, adhesives, and specialty materials.  14\n",
    "In 2005, the Industrial segment of the company experienced strong growth,\n",
    "primarily driven by the acquisition of CUNO and the success of their industrial\n",
    "adhesives and tapes and abrasives businesses. The segment also demonstrated\n",
    "operational discipline with a significant increase in operating income. In 2004,\n",
    "the Industrial segment also experienced solid growth, with acquisitions\n",
    "contributing to sales and strong local-currency sales growth driving operating\n",
    "income growth. The Display and Graphics segment serves various markets, including\n",
    "electronic display, touch screen, traffic safety, and commercial graphics, with a\n",
    "focus on providing optical film and lens solutions for electronic displays.  15 In\n",
    "2005, 3M’s Display and Graphics segment experienced growth in the second half of\n",
    "the year due to factors such as the passing of a new U.S. highway funding bill,\n",
    "moderate growth in Western Europe and Japan, and increased demand for consumer\n",
    "electronics. Despite pricing pressure, sales of 3M’s proprietary optical films and\n",
    "components reached a record high. However, the decline in lens systems for CRT\n",
    "rear projection televisions and the phase out of the commercial videotape business\n",
    "had a negative impact on sales growth and operating income.  16 Consumer and\n",
    "Office segment of the company saw a local-currency sales increase of 3.4% in 2005,\n",
    "driven by growth in construction and home improvement, home care, and protective\n",
    "materials businesses. Sales in the fourth quarter of 2005 were slightly up\n",
    "compared to the previous year, when there was a significant increase due to higher\n",
    "purchase rates by large retailers.  17 In 2005, 3M’s Visual Systems business\n",
    "decline impacted sales by approximately 2%, but its Consumer and Office segment\n",
    "drove success with unique products like Scotch Tape and Post-It Notes. Operating\n",
    "income increased by 6.3% in 2005. In 2004, the Consumer and Office segment saw\n",
    "strong sales growth across\n",
    "1:05\n",
    "various retail channels, particularly in mass-market\n",
    "consumer retail and home improvement. Operating income increased by 17.9% to $542\n",
    "million in 2004. The Electro and Communications segment serves various industries\n",
    "with products that enable the efficient transmission of electrical power and\n",
    "information. In 2005, sales in this segment increased by 4.2% due to improving end\n",
    "market conditions.  18 In 2005, the Electro and Communications segment of the\n",
    "company experienced a 4.2% increase in sales, driven by improving end market\n",
    "conditions and success in new applications. The strong sales growth was led by\n",
    "demand for electronic products for semiconductor manufacturers and electrical\n",
    "products for insulation, testing, and sensing. Operating margins were 19.8%, with\n",
    "a 35.4% increase in operating income. In contrast, the Safety, Security and\n",
    "Protection Services segment saw a 6.9% growth in sales, driven by growth across\n",
    "its product portfolio.  19 In 2005, the company experienced strong sales growth of\n",
    "6.9%, driven by increased demand for personal protective equipment, particularly\n",
    "respiratory protection products, as well as cleaning and protection products for\n",
    "commercial buildings. Operating income also improved by 12.6% in the same year.\n",
    "Additionally, the Transportation segment saw sales growth of 5.0% in 2005,\n",
    "attributed to new customer-focused products and productivity solutions.  20 In\n",
    "2005, the company saw sales growth in its Transportation segment despite\n",
    "challenges in the US automotive market. Operating income increased by 8.1%.\n",
    "Additionally, the company completed the purchase of a 19% investment in I&T\n",
    "Innovation Technology, with plans to collaborate on delivering flat flexible\n",
    "wiring systems for automotive interior applications.  21 3M’s geographic area data\n",
    "is provided as a secondary performance measure, with net sales not necessarily\n",
    "indicative of end-user consumption. U.S. sales revenue increased, with growth led\n",
    "by Industrial, Consumer and Office, and Safety, Security and Protection Services.\n",
    "Asia Pacific and Japan also saw sales growth, while European sales increased\n",
    "slightly. Latin America and Canada saw sales increases, but were impacted by\n",
    "business declines in Mexico and customer moves from Puerto Rico to Singapore.  22\n",
    "In 2005, 3M experienced growth in sales in Latin America, Canada, and the Asia\n",
    "Pacific region, largely due to the weakening of the US dollar against these\n",
    "currencies. International operations accounted for approximately 61% of the\n",
    "company’s sales. The company has been increasing employment in faster-growing\n",
    "areas like Asia Pacific to support local sales, while sales per employee have been\n",
    "increasing in local currencies. 3M is also working towards aligning manufacturing\n",
    "and sourcing with geographic market sales, with a focus on increasing production\n",
    "outside the US to improve customer service and reduce working capital\n",
    "requirements. Overall, the company’s international operations and strategic\n",
    "measures are contributing to its growth and financial performance.  23 Management\n",
    "of the company is responsible for making estimates and assumptions that impact the\n",
    "financial statements and disclosure of contingent assets and liabilities. The\n",
    "company’s critical accounting estimates are related to legal proceedings, pension\n",
    "and postretirement obligations, and potential asset impairment issues. These\n",
    "estimates have been discussed with the Audit Committee of the company’s Board of\n",
    "Directors.  24 The Company determines the discount rate used to measure plan\n",
    "liabilities for pension and postretirement benefit plans based on rates of return\n",
    "on fixed-income investments with high ratings. The discount rate for December 31,\n",
    "2005, was determined to be 5.50%, a reduction from the previous year.\n",
    "Additionally, the Company adopted the RP 2000 Mortality Table, resulting in an\n",
    "increase in pension and postretirement obligations.  25 In 2006, there will be an\n",
    "increase in pension expenses by $64 million and postretirement expenses by $17\n",
    "million due to a change in the postretirement benefit obligation. The Company has\n",
    "significant unrecognized pension actuarial losses that would potentially result in\n",
    "future expenses amortized over average future service periods.  26 The expected\n",
    "long-term rate of return on plan assets and the discount rate used to measure plan\n",
    "liabilities have a significant impact on pension expenses for both U.S. and\n",
    "international pension plans. A 0.25 percentage point increase or decrease in these\n",
    "rates would result in a corresponding increase or decrease in expenses.\n",
    "Additionally, management closely monitors and adjusts estimates and assumptions\n",
    "regarding the recoverability of long-lived assets and goodwill, with impairment\n",
    "testing conducted at the reporting unit level.  27 3M had 18 reporting units at\n",
    "the end of 2005, with most of its goodwill directly assigned to specific units.\n",
    "Impairment losses are recognized when a reporting unit’s net assets exceed its\n",
    "estimated fair value, which is determined using earnings and industry-specific\n",
    "ratios or discounted cash flow analysis. The company adopted new accounting\n",
    "standards in 2005 and 2006 related to asset retirement obligations and stock-based\n",
    "compensation expense. These changes resulted in the recognition of a liability for\n",
    "asset retirement obligations and the expensing of stock-based compensation.  28\n",
    "The company will be adjusting its stock-based compensation disclosures to reflect\n",
    "the adoption of SFAS No. 123R, which requires recognition of compensation expense\n",
    "when an employee is eligible to retire. This change will result in a higher\n",
    "compensation expense for stock-based awards granted to employees eligible to\n",
    "retire, beginning in May 2006 with the annual Management Stock Ownership Program\n",
    "grant. The total expense will depend on various factors such as the number of\n",
    "share-based awards granted and their fair value.  29 The company’s financial\n",
    "condition and liquidity remained strong at the end of 2005, with significant\n",
    "ongoing cash flow and access to capital markets. Despite a decrease in working\n",
    "capital compared to the previous year, the company believes it has ample cash to\n",
    "fund investments and capital expenditures. However, the actual expense of share-\n",
    "based awards may differ from estimates due to factors such as vesting periods and\n",
    "fair value fluctuations.  30 activities for the company increased by $XX million\n",
    "in the year ending December 31, 2005, compared to the previous year. The company\n",
    "uses a combined index to measure working capital, which decreased slightly from\n",
    "5.8 to 5.7. Accounts receivable increased by $46 million, while inventories\n",
    "increased by $265 million. Accounts payable also increased by $88 million, with\n",
    "the CUNO acquisition accounting for $18 million of this increase.  31 In 2005, the\n",
    "company experienced fluctuations in cash flows from operating activities due to\n",
    "various factors such as pension funding decisions, tax timing differences, and\n",
    "legal proceedings. The company made discretionary contributions of $500 million to\n",
    "its pension plans in 2005, and future contributions will depend on market\n",
    "conditions and other factors. Despite these fluctuations, the company believes it\n",
    "has a strong cash flow and balance sheet to fund future pension needs.  32 The\n",
    "company has a strong cash flow and balance sheet which will allow it to fund\n",
    "future pension needs without affecting growth opportunities. They have made\n",
    "investments in property, plant, and equipment to support growth in diverse markets\n",
    "and meet product demand. They have also completed acquisitions and made purchases\n",
    "of investments to expand their business.  33 The company reported approximately\n",
    "$55 million in investments in its balance sheet and cash flow statement. They are\n",
    "actively considering additional acquisitions, investments, and strategic\n",
    "alliances. Total debt decreased from $2.821 billion in 2004 to $2.381 billion in\n",
    "2005, primarily due to the retirement of $400 million in medium-term notes. Total\n",
    "debt was 19% of total capital, compared to 21% in 2004.  34 At year-end 2004, the\n",
    "company had a debt securities program with remaining capacity of $1.438 billion,\n",
    "issued $62 million in debt securities in 2004, and had $539 million in Convertible\n",
    "Notes. The company also authorized the repurchase of $2.0 billion of its common\n",
    "stock between January 1, 2005 and January 31, 2006, and an additional $300 million\n",
    "in October 2005.  35 3M’s Board of Directors has authorized the repurchase of an\n",
    "additional $300 million of its stock, increasing the total repurchase\n",
    "authorization to $2.3 billion. The company has a strong liquidity position, with\n",
    "short-term liquidity needs being met through commercial paper issuances and a\n",
    "credit agreement with primary relationship banks.  36 The company has a strong\n",
    "balance sheet and liquidity, with a cash balance of $1.072 billion at the end of\n",
    "2005. They have the ability to meet near-term obligations and take advantage of\n",
    "opportunities. The company paid significant dividends in 2005 and has a history of\n",
    "dividend increases. They also have the option to repurchase up to $2.0 billion of\n",
    "their common stock. The company has not utilized special purpose entities for off-\n",
    "balance sheet financing.  37 The company has warranty liabilities of approximately\n",
    "$22 million, which they do not consider to be material. The fair value of\n",
    "guarantees and indemnifications made by the company are also not expected to have\n",
    "a material impact on their financial position or results of operations. The\n",
    "company has long-term debt payments due in 2006 and unconditional purchase\n",
    "obligations, including take or pay contracts and capital commitments.  38 The\n",
    "company has short-term obligations related to take or pay contracts, where they\n",
    "guarantee payment to ensure availability of products or services. These\n",
    "obligations do not represent the entirety of future purchases, but only those\n",
    "items for which the company is contractually obligated. The company also engages\n",
    "in financial risk management through derivative arrangements to manage foreign\n",
    "currency exposure, interest rate risks, and commodity price risks.  39 The company\n",
    "uses foreign exchange forward contracts, options, and swaps to hedge against\n",
    "exchange rate fluctuations on cash flows in foreign currencies. They also manage\n",
    "interest rate risks using a mix of fixed and floating rate debt and may enter into\n",
    "interest rate swaps. The company uses various strategies to manage commodity price\n",
    "risks. Based on their analysis, possible changes in foreign exchange rates would\n",
    "have negatively impacted earnings, while changes in interest rates would have had\n",
    "a minimal effect.  40 According to the Form 10-K, the company’s after-tax earnings\n",
    "were positively impacted by a change in exchange rates and negatively impacted by\n",
    "changes in commodity rates. The company uses derivative instruments to hedge a\n",
    "small portion of their exposure to purchased components and materials and energy.\n",
    "The report also mentions that forward-looking statements have been made regarding\n",
    "the company’s expected future business and financial performance.  41 The\n",
    "Company’s forward-looking statements, outlined in Part II, Item 7, provide insight\n",
    "into their expected future business and financial performance. These statements\n",
    "involve key factors such as growth strategy, product development, market position,\n",
    "financial results, and legal contingencies. However, it should be noted that\n",
    "actual results may differ from these statements due to various factors outlined in\n",
    "Part I, Item 1A, “Risk Factors”.\n",
    "\"\"\""
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 8,
   "id": "e7c78e41",
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "(6510, 19148, 13247, 20555)"
      ]
     },
     "execution_count": 8,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "len(large_summary), len(medium_summary), len(small_summary), len(gpt_summary)"
   ]
  },
  {
   "cell_type": "markdown",
   "id": "9bde201e",
   "metadata": {},
   "source": [
    "# Large"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 8,
   "id": "4a1caf52",
   "metadata": {},
   "outputs": [],
   "source": [
    "ROUGE = Rouge()\n",
    "large_scores = ROUGE.get_scores(large_summary, reference)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 9,
   "id": "0de9e725",
   "metadata": {},
   "outputs": [
    {
     "name": "stdout",
     "output_type": "stream",
     "text": [
      "rouge-1 0.2989130406405069\n",
      "rouge-2 0.12511915933677617\n",
      "rouge-l 0.29823369281441997\n"
     ]
    }
   ],
   "source": [
    "for rouge, scores in large_scores[-1].items():\n",
    "    print(rouge, scores['f'])"
   ]
  },
  {
   "cell_type": "markdown",
   "id": "679e4169",
   "metadata": {},
   "source": [
    "# Medium"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 10,
   "id": "1b3d0ba1",
   "metadata": {},
   "outputs": [],
   "source": [
    "ROUGE = Rouge()\n",
    "medium_scores = ROUGE.get_scores(medium_summary, reference)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 11,
   "id": "f19887b3",
   "metadata": {},
   "outputs": [
    {
     "name": "stdout",
     "output_type": "stream",
     "text": [
      "rouge-1 0.5896279551184656\n",
      "rouge-2 0.4226710846913604\n",
      "rouge-l 0.5890642572605175\n"
     ]
    }
   ],
   "source": [
    "for rouge, scores in medium_scores[-1].items():\n",
    "    print(rouge, scores['f'])"
   ]
  },
  {
   "cell_type": "markdown",
   "id": "32107337",
   "metadata": {},
   "source": [
    "# Small"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 12,
   "id": "d568d1c0",
   "metadata": {},
   "outputs": [],
   "source": [
    "ROUGE = Rouge()\n",
    "small_scores = ROUGE.get_scores(small_summary, reference)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 13,
   "id": "aff7933c",
   "metadata": {},
   "outputs": [
    {
     "name": "stdout",
     "output_type": "stream",
     "text": [
      "rouge-1 0.4743155914568653\n",
      "rouge-2 0.3090517211303139\n",
      "rouge-l 0.4743155914568653\n"
     ]
    }
   ],
   "source": [
    "for rouge, scores in small_scores[-1].items():\n",
    "    print(rouge, scores['f'])"
   ]
  },
  {
   "cell_type": "markdown",
   "id": "0c26584a",
   "metadata": {},
   "source": [
    "# Chat GPT"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 14,
   "id": "d9a4dffc",
   "metadata": {},
   "outputs": [],
   "source": [
    "ROUGE = Rouge()\n",
    "gpt_scores = ROUGE.get_scores(gpt_summary, reference)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 15,
   "id": "f6b7b976",
   "metadata": {},
   "outputs": [
    {
     "name": "stdout",
     "output_type": "stream",
     "text": [
      "rouge-1 0.4937481784891012\n",
      "rouge-2 0.2425886809128456\n",
      "rouge-l 0.47862750387438757\n"
     ]
    }
   ],
   "source": [
    "for rouge, scores in gpt_scores[-1].items():\n",
    "    print(rouge, scores['f'])"
   ]
  },
  {
   "cell_type": "markdown",
   "id": "3b63a636",
   "metadata": {},
   "source": [
    "# Sanity check"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 16,
   "id": "7098c9c3",
   "metadata": {},
   "outputs": [],
   "source": [
    "ROUGE = Rouge()\n",
    "scores = ROUGE.get_scores(reference, reference)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 17,
   "id": "3b4f154c",
   "metadata": {},
   "outputs": [
    {
     "name": "stdout",
     "output_type": "stream",
     "text": [
      "rouge-1 0.999999995\n",
      "rouge-2 0.999999995\n",
      "rouge-l 0.999999995\n"
     ]
    }
   ],
   "source": [
    "for rouge, score in scores[-1].items():\n",
    "    print(rouge, score['f'])"
   ]
  }
 ],
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