NOTE 5. Supplemental Equity and Comprehensive Income Information

Consolidated Statement of Changes in Equity

Three months ended June 30, 2017


			3M Company Shareholders
			Common						Accumulated
			Stock and						Other
			Additional						Comprehensive		Non-
			Paid-in		Retained		Treasury		Income		controlling
(Millions)	Total		Capital		Earnings		Stock		(Loss)		Interest
Balance at March 31, 2017	$	11,040	$	5,198	$	38,094	$	(25,354)	$	(6,949)	$	51

Net income		1,585				1,583						2
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		(67)								(67)		—
Defined benefit pension and post-retirement plans adjustment		78								78		—
Cash flow hedging instruments - unrealized gain (loss)		(51)								(51)		—
Total other comprehensive income (loss), net of tax		(40)
Dividends declared		(701)				(701)
Stock-based compensation		55		55
Reacquired stock		(475)						(475)
Issuances pursuant to stock option and benefit plans		180				(183)		363
Balance at June 30, 2017	$	11,644	$	5,253	$	38,793	$	(25,466)	$	(6,989)	$	53

Six months ended June 30, 2017


			3M Company Shareholders
			Common						Accumulated
			Stock and						Other
			Additional						Comprehensive		Non-
			Paid-in		Retained		Treasury		Income		controlling
(Millions)	Total		Capital		Earnings		Stock		(Loss)		Interest
Balance at December 31, 2016	$	10,343	$	5,070	$	37,907	$	(25,434)	$	(7,245)	$	45

Net income		2,911				2,906						5
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		225								222		3
Defined benefit pension and post-retirement plans adjustment		161								161		—
Cash flow hedging instruments - unrealized gain (loss)		(127)								(127)		—
Total other comprehensive income (loss), net of tax		259
Dividends declared		(1,403)				(1,403)
Stock-based compensation		183		183
Reacquired stock		(1,153)						(1,153)
Issuances pursuant to stock option and benefit plans		504				(617)		1,121
Balance at June 30, 2017	$	11,644	$	5,253	$	38,793	$	(25,466)	$	(6,989)	$	53

Three months ended June 30, 2016


			3M Company Shareholders
			Common						Accumulated
			Stock and						Other
			Additional						Comprehensive		Non-
			Paid-in		Retained		Treasury		Income		controlling
(Millions)	Total		Capital		Earnings		Stock		(Loss)		Interest
Balance at March 31, 2016	$	11,495	$	4,925	$	36,506	$	(23,716)	$	(6,261)	$	41

Net income		1,293				1,291						2
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		37								37		—
Defined benefit pension and post-retirement plans adjustment		67								67		—
Cash flow hedging instruments - unrealized gain (loss)		(27)								(27)		—
Total other comprehensive income (loss), net of tax		77
Dividends declared		(672)				(672)
Stock-based compensation		47		47
Reacquired stock		(837)						(837)
Issuances pursuant to stock option and benefit plans		255				(210)		465
Balance at June 30, 2016	$	11,658	$	4,972	$	36,915	$	(24,088)	$	(6,184)	$	43

Six months ended June 30, 2016


			3M Company Shareholders
			Common						Accumulated
			Stock and						Other
			Additional						Comprehensive		Non-
			Paid-in		Retained		Treasury		Income		controlling
(Millions)	Total		Capital		Earnings		Stock		(Loss)		Interest
Balance at December 31, 2015	$	11,468	$	4,800	$	36,296	$	(23,308)	$	(6,359)	$	39

Net income		2,571				2,566						5
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		175								176		(1)
Defined benefit pension and post-retirement plans adjustment		136								136		—
Cash flow hedging instruments - unrealized gain (loss)		(137)								(137)		—
Total other comprehensive income (loss), net of tax		174
Dividends declared		(1,344)				(1,344)
Stock-based compensation		172		172
Reacquired stock		(2,000)						(2,000)
Issuances pursuant to stock option and benefit plans		617				(603)		1,220
Balance at June 30, 2016	$	11,658	$	4,972	$	36,915	$	(24,088)	$	(6,184)	$	43

Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component

Three months ended June 30, 2017


							Total
			Defined Benefit		Cash Flow		Accumulated
			Pension and		Hedging		Other
	Cumulative		Postretirement		Instruments,		Comprehensive
	Translation		Plans		Unrealized		Income
(Millions)	Adjustment		Adjustment		Gain (Loss)		(Loss)
Balance at March 31, 2017, net of tax:	$	(1,719)	$	(5,245)	$	15	$	(6,949)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		(167)		—		(74)		(241)
Amounts reclassified out		—		119		(5)		114
Total other comprehensive income (loss), before tax		(167)		119		(79)		(127)
Tax effect		100		(41)		28		87
Total other comprehensive income (loss), net of tax		(67)		78		(51)		(40)
Balance at June 30, 2017, net of tax:	$	(1,786)	$	(5,167)	$	(36)	$	(6,989)

Six months ended June 30, 2017


							Total
			Defined Benefit		Cash Flow		Accumulated
			Pension and		Hedging		Other
	Cumulative		Postretirement		Instruments,		Comprehensive
	Translation		Plans		Unrealized		Income
(Millions)	Adjustment		Adjustment		Gain (Loss)		(Loss)
Balance at December 31, 2016, net of tax:	$	(2,008)	$	(5,328)	$	91	$	(7,245)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		59		—		(175)		(116)
Amounts reclassified out		—		238		(23)		215
Total other comprehensive income (loss), before tax		59		238		(198)		99
Tax effect		163		(77)		71		157
Total other comprehensive income (loss), net of tax		222		161		(127)		256
Balance at June 30, 2017, net of tax:	$	(1,786)	$	(5,167)	$	(36)	$	(6,989)

Three months ended June 30, 2016


							Total
			Defined Benefit		Cash Flow		Accumulated
			Pension and		Hedging		Other
	Cumulative		Postretirement		Instruments,		Comprehensive
	Translation		Plans		Unrealized		Income
(Millions)	Adjustment		Adjustment		Gain (Loss)		(Loss)
Balance at March 31, 2016, net of tax:	$	(1,540)	$	(4,735)	$	14	$	(6,261)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		59		—		(15)		44
Amounts reclassified out		—		101		(28)		73
Total other comprehensive income (loss), before tax		59		101		(43)		117
Tax effect		(22)		(34)		16		(40)
Total other comprehensive income (loss), net of tax		37		67		(27)		77
Balance at June 30, 2016, net of tax:	$	(1,503)	$	(4,668)	$	(13)	$	(6,184)

Six months ended June 30, 2016


							Total
			Defined Benefit		Cash Flow		Accumulated
			Pension and		Hedging		Other
	Cumulative		Postretirement		Instruments,		Comprehensive
	Translation		Plans		Unrealized		Income
(Millions)	Adjustment		Adjustment		Gain (Loss)		(Loss)
Balance at December 31, 2015, net of tax:	$	(1,679)	$	(4,804)	$	124	$	(6,359)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		119		—		(136)		(17)
Amounts reclassified out		—		204		(80)		124
Total other comprehensive income (loss), before tax		119		204		(216)		107
Tax effect		57		(68)		79		68
Total other comprehensive income (loss), net of tax		176		136		(137)		175
Balance at June 30, 2016, net of tax	$	(1,503)	$	(4,668)	$	(13)	$	(6,184)

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
Details about Accumulated Other	Accumulated Other Comprehensive Income
Comprehensive Income Components	Three months ended June 30,				Six months ended June 30,				Location on Income
(Millions)	2017		2016		2017		2016		Statement
Gains (losses) associated with, defined benefit pension and postretirement plans amortization
Transition asset	$	—	$	1	$	—	$	1	See Note 9
Prior service benefit		22		24		44		47	See Note 9
Net actuarial loss		(141)		(126)		(282)		(252)	See Note 9
Total before tax		(119)		(101)		(238)		(204)
Tax effect		41		34		77		68	Provision for income taxes
Net of tax	$	(78)	$	(67)	$	(161)	$	(136)

Cash flow hedging instruments gains (losses)
Foreign currency forward/option contracts	$	5	$	28	$	23	$	81	Cost of sales
Interest rate swap contracts		—		—		—		(1)	Interest expense
Total before tax		5		28		23		80
Tax effect		(2)		(11)		(8)		(29)	Provision for income taxes
Net of tax	$	3	$	17	$	15	$	51
Total reclassifications for the period, net of tax	$	(75)	$	(50)	$	(146)	$	(85)