Supplemental Equity and Comprehensive Income Information

3 Months Ended

Mar. 31, 2013

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 March 31, 2013				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, 2012		$	18,040	$	4,053	$	30,679	$	(12,407)	$	(4,750)	$	465
Net income			1,147				1,129						18
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment			(398)								(360)		(38)
Defined benefit pension and post-retirement
	plans adjustment		85								85		―
Debt and equity securities - unrealized gain (loss)			―								―		―
Cash flow hedging instruments - unrealized
	gain (loss)		24								24		―
Total other comprehensive income (loss), net
	of tax		(289)
Dividends paid			(440)				(440)
Sale of subsidiary shares			8		7								1
Stock-based compensation, net of tax impacts			128		128
Reacquired stock			(807)						(807)
Issuances pursuant to stock option and
	benefit plans		741				(295)		1,036
Balance at March 31, 2013		$	18,528	$	4,188	$	31,073	$	(12,178)	$	(5,001)	$	446

Three months ended March 31, 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			1,141				1,125						16
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment			134								155		(21)
Defined benefit pension and post-retirement
	plans adjustment		97								97		―
Debt and equity securities - unrealized gain (loss)			3								3		―
Cash flow hedging instruments - unrealized
	gain (loss)		(15)								(15)		―
Total other comprehensive income (loss), net
	of tax		219
Dividends paid			(410)				(410)
Stock-based compensation, net of tax impacts			127		127
Reacquired stock			(534)						(534)
Issuances pursuant to stock option and
	benefit plans		214				(205)		419
Balance at March 31, 2012		$	16,619	$	3,903	$	28,858	$	(11,794)	$	(4,785)	$	437

Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component
Three months ended March 31, 2013
(Millions)		Cumulative Translation Adjustment		Defined Benefit Pension and Postretirement Plans Adjustment		Debt and Equity Securities, Unrealized Gain (Loss)		Cash Flow Hedging Instruments, Unrealized Gain (Loss)		Total Accumulated Other Comprehen-sive Income (Loss)
Balance at December 31, 2012, net of tax		$	230	$	(4,955)	$	(2)	$	(23)	$	(4,750)
Other comprehensive income (loss),
	before tax:
	Amounts before reclassifications		(324)		―		―		(70)		(394)
	Amounts reclassified out		―		143		―		108		251
Total other comprehensive income (loss),
	before tax		(324)		143		―		38		(143)
Tax effect			(36)		(58)		―		(14)		(108)
Total other comprehensive income (loss),
	net of tax		(360)		85		―		24		(251)
Balance at March 31, 2013, net of tax		$	(130)	$	(4,870)	$	(2)	$	1	$	(5,001)
Three months ended March 31, 2012
(Millions)		Cumulative Translation Adjustment		Defined Benefit Pension and Postretirement Plans Adjustment		Debt and Equity Securities, Unrealized Gain (Loss)		Cash Flow Hedging Instruments, Unrealized Gain (Loss)		Total Accumulated Other Comprehen-sive Income (Loss)
Balance at December 31, 2011, net of tax		$	114	$	(5,155)	$	(6)	$	22	$	(5,025)
Other comprehensive income (loss),
	before tax:
	Amounts before reclassifications		155		―		4		(28)		131
	Amounts reclassified out		―		153		1		4		158
Total other comprehensive income (loss),
	before tax		155		153		5		(24)		289
Tax effect			―		(56)		(2)		9		(49)
Total other comprehensive income (loss),
	net of tax		155		97		3		(15)		240
Balance at March 31, 2012, net of tax		$	269	$	(5,058)	$	(3)	$	7	$	(4,785)

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.Reclassification adjustments are made to avoid double counting in comprehensive income items that are also recorded as part of net income.

Reclassifications out of Accumulated Other Comprehensive Income Attributable to 3M
			Amount Reclassified from
(Millions)			Accumulated Other Comprehensive Income			Location on Income Statement
Details about Accumulated Other Comprehensive Income Components		Three months ended March 31, 2013		Three months ended March 31, 2012
Gains (losses) associated with, defined benefit pension and postretirement plans amortization
	Transition asset	$	1	$	1	See Note 7
	Prior service benefit		20		20	See Note 7
	Net actuarial loss		(164)		(174)	See Note 7
Total before tax			(143)		(153)
Tax effect			58		56	Provision for income taxes
Net of tax		$	(85)	$	(97)
Debt and equity security gains (losses)
	Sales or impairments of securities	$	―	$	(1)	Selling, general and administrative expenses
Total before tax			―		(1)
Tax effect			―		―	Provision for income taxes
Net of tax		$	―	$	(1)
Cash flow hedging instruments gains (losses)
	Foreign currency forward/option contracts	$	(6)	$	―	Cost of sales
	Foreign currency forward contracts		(101)		―	Interest expense
	Commodity price swap contracts		(1)		(4)	Cost of sales
Total before tax			(108)		(4)
Tax effect			39		1	Provision for income taxes
Net of tax		$	(69)	$	(3)
Total reclassifications for the period, net of tax		$	(154)	$	(101)

Sale of Subsidiary Shares

In March 2013, 3M sold shares in 3M India Limited, a subsidiary of the Company, in return for $8 million. The noncontrolling interest shares of this subsidiary trade on a public exchange in India. This sale of shares complied with an amendment to Indian securities regulations that required 3M India Limited, as a listed company, to achieve a minimum public shareholding of at least 25 percent.As a result of this transaction, 3M's ownership in 3M India Limited was reduced from 76 percent to 75 percent. The $8 million received in the first quarter of 2013 was classified as other financing activity in the consolidated statement of cash flows. Because the Company retained its controlling interest, the sale resulted in an increase in 3M Company shareholders' equity of $7 million and an increase in noncontrolling interest of $1 million.