NOTE 5. Supplemental Equity and Comprehensive Income Information

Consolidated Statement of Changes in Equity

Three months ended September 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 June 30, 2017	$	11,644	$	5,253	$	38,793	$	(25,466)	$	(6,989)	$	53

Net income		1,433				1,429						4
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		44								45		(1)
Defined benefit pension and post-retirement plans adjustment		80								80		—
Cash flow hedging instruments - unrealized gain (loss)		(49)								(49)		—
Total other comprehensive income (loss), net of tax		75
Dividends declared		(701)				(701)
Stock-based compensation		58		58
Reacquired stock		(394)						(394)
Issuances pursuant to stock option and benefit plans		87				(67)		154
Balance at September 30, 2017	$	12,202	$	5,311	$	39,454	$	(25,706)	$	(6,913)	$	56

Nine months ended September 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		4,344				4,335						9
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		269								267		2
Defined benefit pension and post-retirement plans adjustment		241								241		—
Cash flow hedging instruments - unrealized gain (loss)		(176)								(176)		—
Total other comprehensive income (loss), net of tax		334
Dividends declared		(2,104)				(2,104)
Stock-based compensation		241		241
Reacquired stock		(1,547)						(1,547)
Issuances pursuant to stock option and benefit plans		591				(684)		1,275
Balance at September 30, 2017	$	12,202	$	5,311	$	39,454	$	(25,706)	$	(6,913)	$	56

Three months ended September 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 June 30, 2016	$	11,658	$	4,972	$	36,915	$	(24,088)	$	(6,184)	$	43

Net income		1,331				1,329						2
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		17								16		1
Defined benefit pension and post-retirement plans adjustment		67								67		—
Cash flow hedging instruments - unrealized gain (loss)		(45)								(45)		—
Total other comprehensive income (loss), net of tax		39
Dividends declared		(670)				(670)
Stock-based compensation		49		49
Reacquired stock		(771)						(771)
Issuances pursuant to stock option and benefit plans		133				(108)		241
Balance at September 30, 2016	$	11,769	$	5,021	$	37,466	$	(24,618)	$	(6,146)	$	46

Nine months ended September 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		3,902				3,895						7
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		192								192		—
Defined benefit pension and post-retirement plans adjustment		203								203		—
Cash flow hedging instruments - unrealized gain (loss)		(182)								(182)		—
Total other comprehensive income (loss), net of tax		213
Dividends declared		(2,014)				(2,014)
Stock-based compensation		221		221
Reacquired stock		(2,771)						(2,771)
Issuances pursuant to stock option and benefit plans		750				(711)		1,461
Balance at September 30, 2016	$	11,769	$	5,021	$	37,466	$	(24,618)	$	(6,146)	$	46

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

Three months ended September 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 June 30, 2017, net of tax:	$	(1,786)	$	(5,167)	$	(36)	$	(6,989)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		(29)		—		(80)		(109)
Amounts reclassified out		—		119		2		121
Total other comprehensive income (loss), before tax		(29)		119		(78)		12
Tax effect		74		(39)		29		64
Total other comprehensive income (loss), net of tax		45		80		(49)		76
Balance at September 30, 2017, net of tax:	$	(1,741)	$	(5,087)	$	(85)	$	(6,913)

Nine months ended September 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		30		—		(255)		(225)
Amounts reclassified out		—		357		(21)		336
Total other comprehensive income (loss), before tax		30		357		(276)		111
Tax effect		237		(116)		100		221
Total other comprehensive income (loss), net of tax		267		241		(176)		332
Balance at September 30, 2017, net of tax:	$	(1,741)	$	(5,087)	$	(85)	$	(6,913)

Three months ended September 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 June 30, 2016, net of tax:	$	(1,503)	$	(4,668)	$	(13)	$	(6,184)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		(8)		—		(44)		(52)
Amounts reclassified out		—		103		(24)		79
Total other comprehensive income (loss), before tax		(8)		103		(68)		27
Tax effect		24		(36)		23		11
Total other comprehensive income (loss), net of tax		16		67		(45)		38
Balance at September 30, 2016, net of tax:	$	(1,487)	$	(4,601)	$	(58)	$	(6,146)

Nine months ended September 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		111		—		(180)		(69)
Amounts reclassified out		—		307		(104)		203
Total other comprehensive income (loss), before tax		111		307		(284)		134
Tax effect		81		(104)		102		79
Total other comprehensive income (loss), net of tax		192		203		(182)		213
Balance at September 30, 2016, net of tax	$	(1,487)	$	(4,601)	$	(58)	$	(6,146)

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 September 30,				Nine months ended September 30,				Location on Income
(Millions)	2017		2016		2017		2016		Statement
Gains (losses) associated with, defined benefit pension and postretirement plans amortization
Transition asset	$	—	$	—	$	—	$	1	See Note 9
Prior service benefit		21		22		65		69	See Note 9
Net actuarial loss		(140)		(125)		(422)		(377)	See Note 9
Total before tax		(119)		(103)		(357)		(307)
Tax effect		39		36		116		104	Provision for income taxes
Net of tax	$	(80)	$	(67)	$	(241)	$	(203)

Cash flow hedging instruments gains (losses)
Foreign currency forward/option contracts	$	(2)	$	24	$	21	$	105	Cost of sales
Interest rate swap contracts		—		—		—		(1)	Interest expense
Total before tax		(2)		24		21		104
Tax effect		—		(9)		(8)		(38)	Provision for income taxes
Net of tax	$	(2)	$	15	$	13	$	66
Total reclassifications for the period, net of tax	$	(82)	$	(52)	$	(228)	$	(137)