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Supplemental Equity and Comprehensive Income Information
 9 Months Ended
Sep. 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 September 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 June 30, 2012 $ 16,873 $ 3,963 $ 29,465 $ (12,010) $ (5,012) $ 467
                    
Net income    1,180      1,161         19
Other comprehensive income (loss), net of tax:                  
Cumulative translation adjustment   412            401   11
Defined benefit pension and post-retirement                  
 plans adjustment   96            96   -
Debt and equity securities - unrealized gain (loss)    3            3   -
Cash flow hedging instruments - unrealized                  
 gain/(loss)    (36)            (36)   -
Total other comprehensive income (loss), net                  
 of tax    475               
Dividends paid    (408)      (408)         
Stock-based compensation, net of tax impacts    44   44            
Reacquired stock    (316)         (316)      
Issuances pursuant to stock option and                  
 benefit plans    293      (68)   361      
Balance at September 30, 2012 $ 18,141 $ 4,007 $ 30,150 $ (11,965) $ (4,548) $ 497
                    
Nine months ended September 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    3,507      3,453         54
Other comprehensive income (loss), net of tax:                  
Cumulative translation adjustment   211            210   1
Defined benefit pension and post-retirement                  
 plans adjustment   291            291   -
Debt and equity securities - unrealized gain (loss)    4            4   -
Cash flow hedging instruments - unrealized                  
 gain/(loss)    (28)            (28)   -
Total other comprehensive income (loss),                  
 net of tax    478               
Dividends paid    (1,228)      (1,228)         
Stock-based compensation, net of tax impacts    231   231            
Reacquired stock    (1,483)         (1,483)      
Issuances pursuant to stock option and                  
 benefit plans    774      (423)   1,197      
Balance at September 30, 2012 $ 18,141 $ 4,007 $ 30,150 $ (11,965) $ (4,548) $ 497

Three months ended September 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 June 30, 2011 $ 17,742 $ 3,692 $ 27,110 $ (10,511) $ (2,961) $ 412
                    
Net income    1,103      1,088         15
Other comprehensive income (loss), net of tax:                  
Cumulative translation adjustment   (490)            (507)   17
Defined benefit pension and post-retirement                  
 plans adjustment   77            77   -
Debt and equity securities - unrealized gain (loss)    (2)            (2)   -
Cash flow hedging instruments - unrealized                  
 gain/(loss)    54            54   -
Total other comprehensive income (loss), net                  
 of tax    (361)               
Dividends paid    (388)      (388)         
Stock-based compensation, net of tax impacts    42   42            
Reacquired stock    (837)         (837)      
Issuances pursuant to stock option and                  
 benefit plans    111      (26)   137      
Balance at September 30, 2011 $ 17,412 $ 3,734 $ 27,784 $ (11,211) $ (3,339) $ 444
                    
Nine months ended September 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    3,383      3,329         54
Other comprehensive income (loss), net of tax:                  
Cumulative translation adjustment   (14)            (34)   20
Defined benefit pension and post-retirement                  
 plans adjustment   207            206   1
Debt and equity securities - unrealized gain (loss)    (5)            (5)   -
Cash flow hedging instruments - unrealized                  
 gain/(loss)    37            37   -
Total other comprehensive income (loss),                  
 net of tax    225               
Dividends paid    (1,171)      (1,171)         
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    258   258            
Reacquired stock    (2,181)         (2,181)      
Issuances pursuant to stock option and                  
 benefit plans    867      (369)   1,236      
Balance at September 30, 2011 $ 17,412 $ 3,734 $ 27,784 $ (11,211) $ (3,339) $ 444

Accumulated Other Comprehensive Income (Loss) Attributable to 3M      
  September 30, December 31,
(Millions) 2012 2011
Cumulative translation adjustment  $ 324 $ 114
Defined benefit pension and postretirement plans adjustment    (4,864)   (5,155)
Debt and equity securities, unrealized gain (loss)   (2)   (6)
Cash flow hedging instruments, unrealized gain (loss)    (6)   22
Total accumulated other comprehensive income (loss)  $ (4,548) $ (5,025)

Components of Comprehensive Income (Loss) Attributable to 3M
     
   Three months ended Nine months ended
 September 30,September 30,
(Millions) 2012 2011 2012 2011
Net income attributable to 3M  $ 1,161 $ 1,088 $ 3,453 $ 3,329
              
Cumulative translation    380   (489)   211   (63)
Tax effect    21   (18)   (1)   29
Cumulative translation - net of tax    401   (507)   210   (34)
              
Defined benefit pension and postretirement plans adjustment    153   120   460   358
Tax effect    (57)   (43)   (169)   (152)
Defined benefit pension and postretirement plans             
 adjustment - net of tax   96   77   291   206
              
Debt and equity securities, unrealized gain (loss)    4   (3)   6   (8)
Tax effect    (1)   1   (2)   3
Debt and equity securities, unrealized gain (loss) -             
 net of tax    3   (2)   4   (5)
              
Cash flow hedging instruments, unrealized gain (loss)    (57)   85   (44)   59
Tax effect    21   (31)   16   (22)
Cash flow hedging instruments unrealized gain (loss) -             
 net of tax   (36)   54   (28)   37
              
Total comprehensive income (loss) attributable to 3M  $ 1,625 $ 710 $ 3,930 $ 3,533

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 $153 million pre-tax ($96 million after-tax) for the three months ended September 30, 2012, $460 million pre-tax ($291 million after-tax) for the nine months ended September 30, 2012, $117 million pre-tax ($77 million after-tax) for the three months ended September 30, 2011, and $355 million pre-tax ($207 million after-tax) for the nine months ended September 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 September 30, 2012, $1 million pre-tax ($1 million after-tax) for the nine months ended September 30, 2012, $4 million pre-tax ($2 million after-tax) for the three months ended September 30, 2011, and $2 million pre-tax ($1 million after-tax) for the nine months ended September 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 September 30, 2011, and subsequently to 100 percent as of December 31, 2011. The $50 million of cash paid in the first nine 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 nine months of 2011 and 2012, 3M sold a noncontrolling interest in a newly formed subsidiary and purchased the remaining noncontrolling interest of another subsidiary, both for immaterial amounts, which were also classified as other financing activities in the consolidated statement of cash flows.