Supplemental Equity and Comprehensive Income Information

6 Months Ended

Jun. 30, 2015

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, 2015				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, 2015		$	13,952	$	4,616	$	35,080	$	(19,458)	$	(6,321)	$	35
Net income			1,303				1,300						3
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment			23								24		(1)
Defined benefit pension and post-retirement
	plans adjustment		96								96		―
Debt and equity securities - unrealized gain (loss)			―								―		―
Cash flow hedging instruments - unrealized
	gain (loss)		(32)								(32)		―
Total other comprehensive income (loss), net
	of tax		87
Dividends declared			(646)				(646)
Stock-based compensation, net of tax impacts			78		78
Reacquired stock			(1,787)						(1,787)
Issuances pursuant to stock option and
	benefit plans		143				(119)		262
Balance at June 30, 2015		$	13,130	$	4,694	$	35,615	$	(20,983)	$	(6,233)	$	37
Six months ended June 30, 2015				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, 2014		$	13,142	$	4,388	$	34,317	$	(19,307)	$	(6,289)	$	33
Net income			2,504				2,499						5
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment			(170)								(169)		(1)
Defined benefit pension and post-retirement
	plans adjustment		187								187		―
Debt and equity securities - unrealized gain (loss)			―								―		―
Cash flow hedging instruments - unrealized
	gain (loss)		38								38		―
Total other comprehensive income (loss),
	net of tax		55
Dividends declared			(649)				(649)
Stock-based compensation, net of tax impacts			306		306
Reacquired stock			(2,683)						(2,683)
Issuances pursuant to stock option and
	benefit plans		455				(552)		1,007
Balance at June 30, 2015		$	13,130	$	4,694	$	35,615	$	(20,983)	$	(6,233)	$	37

Three months ended June 30, 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 March 31, 2014		$	17,924	$	4,554	$	33,312	$	(16,577)	$	(3,841)	$	476
Net income			1,283				1,267						16
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment			127								123		4
Defined benefit pension and post-retirement
	plans adjustment		60								60		―
Debt and equity securities - unrealized gain (loss)			1								1		―
Cash flow hedging instruments - unrealized
	gain (loss)		(9)								(9)		―
Total other comprehensive income (loss), net
	of tax		179
Dividends declared			(556)				(556)
Purchase of subsidiary shares			(5)		(1)								(4)
Stock-based compensation, net of tax impacts			97		97
Reacquired stock			(1,382)						(1,382)
Issuances pursuant to stock option and
	benefit plans		306				(187)		493
Balance at June 30, 2014		$	17,846	$	4,650	$	33,836	$	(17,466)	$	(3,666)	$	492
Six months ended June 30, 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			2,508				2,474						34
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment			147								131		16
Defined benefit pension and post-retirement
	plans adjustment		121								121		―
Debt and equity securities - unrealized gain (loss)			2								2		―
Cash flow hedging instruments - unrealized
	gain (loss)		(7)								(7)		―
Total other comprehensive income (loss),
	net of tax		263
Dividends declared			(555)				(555)
Purchase of subsidiary shares			(5)		(1)								(4)
Stock-based compensation, net of tax impacts			267		267
Reacquired stock			(3,155)						(3,155)
Issuances pursuant to stock option and
	benefit plans		575				(499)		1,074
Balance at June 30, 2014		$	17,846	$	4,650	$	33,836	$	(17,466)	$	(3,666)	$	492

In December 2014, 3M's Board of Directors declared a first-quarter 2015 dividend of $1.025 per share (paid in March 2015). 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 stockholder equity and increased other current liabilities as of both December 31, 2014 and December 31, 2013, by approximately $0.6 billion.

Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component
Three months ended June 30, 2015
(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 March 31, 2015, net of tax		$	(1,288)	$	(5,202)	$	―	$	169	$	(6,321)
Other comprehensive income (loss),
	before tax:
	Amounts before reclassifications		(12)		―		―		(16)		(28)
	Amounts reclassified out		―		141		―		(34)		107
Total other comprehensive income (loss),
	before tax		(12)		141		―		(50)		79
Tax effect			36		(45)		―		18		9
Total other comprehensive income (loss),
	net of tax		24		96		―		(32)		88
Balance at June 30, 2015, net of tax		$	(1,264)	$	(5,106)	$	―	$	137	$	(6,233)
Six months ended June 30, 2015
(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, 2014, net of tax		$	(1,095)	$	(5,293)	$	―	$	99	$	(6,289)
Other comprehensive income (loss),
	before tax:
	Amounts before reclassifications		(56)		24		―		120		88
	Amounts reclassified out		―		265		―		(61)		204
Total other comprehensive income (loss),
	before tax		(56)		289		―		59		292
Tax effect			(113)		(102)		―		(21)		(236)
Total other comprehensive income (loss),
	net of tax		(169)		187		―		38		56
Balance at June 30, 2015, net of tax		$	(1,264)	$	(5,106)	$	―	$	137	$	(6,233)

Three months ended June 30, 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 March 31, 2014, net of tax		$	(180)	$	(3,654)	$	(1)	$	(6)	$	(3,841)
Other comprehensive income (loss),
	before tax:
	Amounts before reclassifications		128		―		1		(21)		108
	Amounts reclassified out		―		92		―		5		97
Total other comprehensive income (loss),
	before tax		128		92		1		(16)		205
Tax effect			(5)		(32)		―		7		(30)
Total other comprehensive income (loss),
	net of tax		123		60		1		(9)		175
Balance at June 30, 2014, net of tax		$	(57)	$	(3,594)	$	―	$	(15)	$	(3,666)
Six months ended June 30, 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		134		―		3		(12)		125
	Amounts reclassified out		―		183		―		(1)		182
Total other comprehensive income (loss),
	before tax		134		183		3		(13)		307
Tax effect			(3)		(62)		(1)		6		(60)
Total other comprehensive income (loss),
	net of tax		131		121		2		(7)		247
Balance at June 30, 2014, net of tax		$	(57)	$	(3,594)	$	―	$	(15)	$	(3,666)

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
			Accumulated Other Comprehensive Income
(Millions)		Three months ended June 30,				Six months ended June 30,				Location on Income Statement
Details about Accumulated Other Comprehensive Income Components		2015		2014		2015		2014
Gains (losses) associated with defined benefit pension and postretirement plans amortization
	Transition asset	$	1	$	―	$	1	$	―	See Note 8
	Prior service benefit		17		15		35		30	See Note 8
	Net actuarial loss		(159)		(107)		(318)		(213)	See Note 8
	Curtailments/Settlements		―		―		17		―	See Note 8
Total before tax			(141)		(92)		(265)		(183)
Tax effect			45		32		91		62	Provision for income taxes
Net of tax		$	(96)	$	(60)	$	(174)	$	(121)
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	$	35	$	(6)	$	65	$	(2)	Cost of sales
	Commodity price swap contracts		―		1		(2)		3	Cost of sales
	Interest rate swap contracts		(1)		―		(2)		―	Interest expense
Total before tax			34		(5)		61		1
Tax effect			(12)		2		(22)		―	Provision for income taxes
Net of tax		$	22	$	(3)	$	39	$	1
Total reclassifications for the period, net of tax		$	(74)	$	(63)	$	(135)	$	(120)