NOTE 7. Supplemental Equity and Comprehensive Income Information

Consolidated Statement of Changes in Equity

Three months ended March 31, 2018


			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, 2017	$	11,622	$	5,361	$	39,115	$	(25,887)	$	(7,026)	$	59

Net income		606				602						4
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		167								168		(1)
Defined benefit pension and post-retirement plans adjustment		116								116		—
Cash flow hedging instruments - unrealized gain (loss)		(61)								(61)		—
Total other comprehensive income (loss), net of tax		222
Dividends declared		(810)				(810)
Stock-based compensation		144		144
Reacquired stock		(972)						(972)
Issuances pursuant to stock option and benefit plans		227				(454)		681
Balance at March 31, 2018	$	11,039	$	5,505	$	38,453	$	(26,178)	$	(6,803)	$	62

Three months ended March 31, 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		1,326				1,323						3
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		292								289		3
Defined benefit pension and post-retirement plans adjustment		83								83		—
Cash flow hedging instruments - unrealized gain (loss)		(76)								(76)		—
Total other comprehensive income (loss), net of tax		299
Dividends declared		(702)				(702)
Stock-based compensation		128		128
Reacquired stock		(678)						(678)
Issuances pursuant to stock option and benefit plans		324				(434)		758
Balance at March 31, 2017	$	11,040	$	5,198	$	38,094	$	(25,354)	$	(6,949)	$	51

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

Three months ended March 31, 2018


							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, 2017, net of tax:	$	(1,638)	$	(5,276)	$	(112)	$	(7,026)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		129		—		(82)		47
Amounts reclassified out		—		151		34		185
Total other comprehensive income (loss), before tax		129		151		(48)		232
Tax effect		39		(35)		(13)		(9)
Total other comprehensive income (loss), net of tax		168		116		(61)		223
Balance at March 31, 2018, net of tax:	$	(1,470)	$	(5,160)	$	(173)	$	(6,803)

Three months ended March 31, 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		226		—		(101)		125
Amounts reclassified out		—		119		(18)		101
Total other comprehensive income (loss), before tax		226		119		(119)		226
Tax effect		63		(36)		43		70
Total other comprehensive income (loss), net of tax		289		83		(76)		296
Balance at March 31, 2017, net of tax:	$	(1,719)	$	(5,245)	$	15	$	(6,949)

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 March 31,				Location on Income
(Millions)	2018		2017		Statement
Gains (losses) associated with defined benefit pension and postretirement plans amortization
Prior service benefit		19		22	See Note 11
Net actuarial loss		(170)		(141)	See Note 11
Total before tax		(151)		(119)
Tax effect		35		36	Provision for income taxes
Net of tax	$	(116)	$	(83)

Cash flow hedging instruments gains (losses)
Foreign currency forward/option contracts	$	(34)	$	18	Cost of sales
Total before tax		(34)		18
Tax effect		8		(6)	Provision for income taxes
Net of tax	$	(26)	$	12
Total reclassifications for the period, net of tax	$	(142)	$	(71)