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Supplemental Equity and Comprehensive Income Information
 6 Months Ended
Jun. 30, 2012
Supplemental Equity and Comprehensive Income Information  
Supplemental Equity and Comprehensive Income Information

NOTE 4. Supplemental Equity and Comprehensive Income Information

Consolidated Statement of Changes in Equity

Three months ended June 30, 2012   3M Company Shareholders  
(Millions) Total Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehen-sive Income (Loss) Non-controlling Interest
Balance at March 31, 2012 $ 16,619 $ 3,903 $ 28,858 $ (11,794) $ (4,785) $ 437
                    
Net income    1,186      1,167         19
Other comprehensive income (loss), net of tax:                  
Cumulative translation adjustment   (335)            (346)   11
Defined benefit pension and post-retirement                  
 plans adjustment   98            98   -
Debt and equity securities - unrealized gain (loss)    (2)            (2)   -
Cash flow hedging instruments - unrealized                  
 gain/(loss)    23            23   -
Total other comprehensive income (loss), net                  
 of tax    (216)               
Dividends paid    (410)      (410)         
Stock-based compensation, net of tax impacts    60   60            
Reacquired stock    (633)         (633)      
Issuances pursuant to stock option and                  
 benefit plans    267      (150)   417      
Balance at June 30, 2012 $ 16,873 $ 3,963 $ 29,465 $ (12,010) $ (5,012) $ 467
                    
Six months ended June 30, 2012    3M Company Shareholders  
(Millions) Total Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehen-sive Income (Loss) Non-controlling Interest
Balance at December 31, 2011 $ 15,862 $ 3,776 $ 28,348 $ (11,679) $ (5,025) $ 442
                    
Net income    2,327      2,292         35
Other comprehensive income (loss), net of tax:                  
Cumulative translation adjustment   (201)            (191)   (10)
Defined benefit pension and post-retirement                  
 plans adjustment   195            195   -
Debt and equity securities - unrealized gain (loss)    1            1   -
Cash flow hedging instruments - unrealized                  
 gain/(loss)    8            8   -
Total other comprehensive income (loss),                  
 net of tax    3               
Dividends paid    (820)      (820)         
Stock-based compensation, net of tax impacts    187   187            
Reacquired stock    (1,167)         (1,167)      
Issuances pursuant to stock option and                  
 benefit plans    481      (355)   836      
Balance at June 30, 2012 $ 16,873 $ 3,963 $ 29,465 $ (12,010) $ (5,012) $ 467

Three months ended June 30, 2011   3M Company Shareholders  
(Millions) Total Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehen-sive Income (Loss) Non-controlling Interest
Balance at March 31, 2011 $ 16,887 $ 3,608 $ 26,521 $ (10,398) $ (3,237) $ 393
                    
Net income    1,177      1,160         17
Other comprehensive income (loss), net of tax:                  
Cumulative translation adjustment   234            225   9
Defined benefit pension and post-retirement                  
 plans adjustment   54            53   1
Debt and equity securities - unrealized gain (loss)    (2)            (2)   -
Cash flow hedging instruments - unrealized                  
 gain/(loss)    -            -   -
Total other comprehensive income (loss), net                  
 of tax    286               
Dividends paid    (391)      (391)         
Purchase and sale of subsidiary shares - net   (9)   (1)            (8)
Stock-based compensation, net of tax impacts    85   85            
Reacquired stock    (669)         (669)      
Issuances pursuant to stock option and                  
 benefit plans    376      (180)   556      
Balance at June 30, 2011 $ 17,742 $ 3,692 $ 27,110 $ (10,511) $ (2,961) $ 412
                    
Six months ended June 30, 2011   3M Company Shareholders  
(Millions) Total Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehen-sive Income (Loss) Non-controlling Interest
Balance at December 31, 2010 $ 16,017 $ 3,477 $ 25,995 $ (10,266) $ (3,543) $ 354
                    
Net income    2,280      2,241         39
Other comprehensive income (loss), net of tax:                  
Cumulative translation adjustment   476            473   3
Defined benefit pension and post-retirement                  
 plans adjustment   130            129   1
Debt and equity securities - unrealized gain (loss)    (3)            (3)   -
Cash flow hedging instruments - unrealized                  
 gain/(loss)    (17)            (17)   -
Total other comprehensive income (loss),                  
 net of tax    586               
Dividends paid    (783)      (783)         
Business combination allocation to noncontrolling                  
 interest    56               56
Purchase and sale of subsidiary shares - net    (42)   (1)            (41)
Stock-based compensation, net of tax impacts    216   216            
Reacquired stock    (1,344)         (1,344)      
Issuances pursuant to stock option and                  
 benefit plans    756      (343)   1,099      
Balance at June 30, 2011 $ 17,742 $ 3,692 $ 27,110 $ (10,511) $ (2,961) $ 412

Accumulated Other Comprehensive Income (Loss) Attributable to 3M      
  June 30, December 31,
(Millions) 2012 2011
Cumulative translation adjustment  $ (77) $ 114
Defined benefit pension and postretirement plans adjustment    (4,960)   (5,155)
Debt and equity securities, unrealized gain (loss)   (5)   (6)
Cash flow hedging instruments, unrealized gain (loss)    30   22
Total accumulated other comprehensive income (loss)  $ (5,012) $ (5,025)

Components of Comprehensive Income (Loss) Attributable to 3M
     
   Three months ended Six months ended
 June 30,June 30,
(Millions) 2012 2011 2012 2011
Net income attributable to 3M  $ 1,167 $ 1,160 $ 2,292 $ 2,241
              
Cumulative translation    (324)   205   (169)   426
Tax effect    (22)   20   (22)   47
Cumulative translation - net of tax    (346)   225   (191)   473
              
Defined benefit pension and postretirement plans adjustment    154   119   307   238
Tax effect    (56)   (66)   (112)   (109)
Defined benefit pension and postretirement plans             
 adjustment - net of tax   98   53   195   129
              
Debt and equity securities, unrealized gain (loss)    (3)   (3)   2   (5)
Tax effect    1   1   (1)   2
Debt and equity securities, unrealized gain (loss) -             
 net of tax    (2)   (2)   1   (3)
              
Cash flow hedging instruments, unrealized gain (loss)    37   1   13   (26)
Tax effect    (14)   (1)   (5)   9
Cash flow hedging instruments unrealized gain (loss) -             
 net of tax   23   -   8   (17)
              
Total comprehensive income (loss) attributable to 3M  $ 940 $ 1,436 $ 2,305 $ 2,823

Reclassification adjustments are made to avoid double counting in comprehensive income items that are also recorded as part of net income. Reclassifications to earnings from accumulated other comprehensive income including noncontrolling interest that related to pension and postretirement expense in the income statement were $154 million pre-tax ($98 million after-tax) for the three months ended June 30, 2012, $307 million pre-tax ($195 million after-tax) for the six months ended June 30, 2012, $119 million pre-tax ($54 million after-tax) for the three months ended June 30, 2011, and $238 million pre-tax ($130 million after-tax) for the six months ended June 30, 2011. These pension and postretirement expense pre-tax amounts are shown in the table in Note 8 as amortization of transition (asset) obligation, amortization of prior service cost (benefit) and amortization of net actuarial (gain) loss. Cash flow hedging instruments reclassifications are provided in Note 9. Reclassifications to earnings from accumulated other comprehensive income that related to realized losses due to sales or impairments (net of realized gains) for debt and equity securities were not material for the three months ended June 30, 2012 and $1 million pre-tax ($1 million after-tax) for the six months ended June 30, 2012. Reclassifications to earnings from accumulated other comprehensive income that related to realized gains due to sales of debt and equity securities were $2 million pre-tax ($1 million after-tax) for the three months ended June 30, 2011 and $2 million pre-tax ($1 million after-tax) for the six months ended June 30, 2011. Income taxes are not provided for foreign translation relating to permanent investments in international subsidiaries, but tax effects within cumulative translation does include impacts from items such as net investment hedge transactions.

 

Purchase and Sale of Subsidiary Shares

 

As discussed in Note 2 in 3M's 2011 Annual Report on Form 10-K, in early March 2011, 3M acquired a controlling interest in Winterthur Technologie AG (Winterthur), making Winterthur a consolidated subsidiary as of this business acquisition date. As of this business acquisition date, noncontrolling interest related to Winterthur totaled $56 million. Subsequent to this business acquisition date, 3M purchased additional outstanding shares of its Winterthur subsidiary increasing 3M's ownership interest from approximately 86 percent as of the business acquisition date to approximately 98 percent as of June 30, 2011, and subsequently to 100 percent as of December 31, 2011. The $50 million of cash paid in the first six months of 2011 as a result of these additional purchases of Winterthur shares was classified as other financing activity in the consolidated statement of cash flows. These additional purchases did not result in a material transfer from noncontrolling interest to 3M Company shareholders' equity. In addition, during the first six months of 2011, 3M sold a noncontrolling interest in a newly formed subsidiary for an immaterial amount, which was also classified as other financing activity in the consolidated statement of cash flows.