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Supplemental Equity and Comprehensive Income Information
3 Months Ended
Mar. 31, 2014
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, 2014   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, 2013 $ 17,948 $ 4,384 $ 32,416 $ (15,385) $ (3,913) $ 446
                    
Net income    1,225      1,207         18
Other comprehensive income (loss), net of tax:                  
Cumulative translation adjustment   20            8   12
Defined benefit pension and post-retirement                   
 plans adjustment   61            61  
Debt and equity securities - unrealized gain (loss)    1            1  
Cash flow hedging instruments - unrealized                  
 gain (loss)    2            2  
Total other comprehensive income (loss), net                  
 of tax    84               
Dividends declared    1      1         
Stock-based compensation, net of tax impacts    170   170            
Reacquired stock    (1,773)         (1,773)      
Issuances pursuant to stock option and                  
 benefit plans    269      (312)   581      
Balance at March 31, 2014 $ 17,924 $ 4,554 $ 33,312 $ (16,577) $ (3,841) $ 476

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 declared   (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

3M has historically declared and paid dividends in the same quarter. In December 2013, 3M's Board of Directors declared a first-quarter 2014 dividend of $0.855 per share (paid in March 2014). This reduced 3M's stockholders equity and increased other current liabilities as of December 31, 2013 by $567 million. This resulted in total year 2013 declared dividends of $3.395 per share, with $2.54 per share paid in 2013 and the additional $0.855 per share paid in March 2014.

Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component   
                   
Three months ended March 31, 2014               
(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, 2013, net of tax $ (188) $ (3,715) $ (2) $ (8) $ (3,913)
Other comprehensive income (loss),                
 before tax:               
 Amounts before reclassifications   5     2   9   16
 Amounts reclassified out     91     (6)   85
Total other comprehensive income (loss),                
 before tax   5   91   2   3   101
Tax effect   3   (30)   (1)   (1)   (29)
Total other comprehensive income (loss),                
 net of tax   8   61   1   2   72
Balance at March 31, 2014, net of tax $ (180) $ (3,654) $ (1) $ (6) $ (3,841)
                 
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)       (35)   (359)
 Amounts reclassified out     143     73   216
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)

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.

 

The previously reported before-tax amounts of other comprehensive income before reclassifications and amounts reclassified out of other comprehensive income for the three months ended March 31, 2013 relative to foreign currency forward contracts in the table above and below were impacted by the immaterial revisions discussed in Note 8.

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, 2014 Three months ended March 31, 2013 
Gains (losses) associated with, defined benefit pension and postretirement plans amortization        
 Transition asset $ $ 1 See Note 7
 Prior service benefit   15   20 See Note 7
 Net actuarial loss   (106)   (164) See Note 7
Total before tax   (91)   (143)  
Tax effect   30   58 Provision for income taxes
Net of tax $ (61) $ (85)  
          
Debt and equity security gains (losses)        
 Sales or impairments of securities $ $ Selling, general and administrative expenses
Total before tax      
Tax effect     Provision for income taxes
Net of tax $ $  
          
Cash flow hedging instruments gains (losses)        
 Foreign currency forward/option contracts $ 4 $ (6) Cost of sales
 Foreign currency forward contracts     (66) Interest expense
 Commodity price swap contracts   2   (1) Cost of sales
Total before tax   6   (73)  
Tax effect   (2)   26 Provision for income taxes
Net of tax $ 4 $ (47)  
Total reclassifications for the period, net of tax $ (57) $ (132)  

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.