Supplemental Equity and Comprehensive Income Information

9 Months Ended

Sep. 30, 2019

Supplemental Equity and Comprehensive Income Information

Supplemental Equity and Comprehensive Income Information

NOTE 7. Supplemental Equity and Comprehensive Income Information

Cash dividends declared and paid totaled $1.44 and $1.36 per share for the first, second and third quarters 2019 and 2018, respectively, or $4.32 and $4.08 per share for the first nine months of 2019 and 2018, respectively.

Consolidated Changes in Equity

Three months ended September 30, 2019

			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, 2019	$	10,142	$	5,821	$	41,362	$	(29,828)	$	(7,272)	$	59
Net income		1,588				1,583						5
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		(202)								(200)		(2)
Defined benefit pension and post-retirement plans adjustment		76								76		—
Cash flow hedging instruments		8								8		—
Total other comprehensive income (loss), net of tax		(118)
Dividends declared		(828)				(828)
Stock-based compensation		49		49
Reacquired stock		(141)						(141)
Issuances pursuant to stock option and benefit plans		72				(32)		104
Balance at September 30, 2019	$	10,764	$	5,870	$	42,085	$	(29,865)	$	(7,388)	$	62

Nine Months Ended September 30, 2019

			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, 2018	$	9,848	$	5,652	$	40,636	$	(29,626)	$	(6,866)	$	52
Impact of adoption of ASU No. 2018-02 (See Note 1)		—				853				(853)
Impact of adoption of ASU No. 2016-02 (See Note 1)		14				14
Net income		3,612				3,601						11
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		(2)								(1)		(1)
Defined benefit pension and post-retirement plans adjustment		356								356		—
Cash flow hedging instruments		(24)								(24)		—
Total other comprehensive income (loss), net of tax		330
Dividends declared		(2,488)				(2,488)
Stock-based compensation		218		218
Reacquired stock		(1,211)						(1,211)
Issuances pursuant to stock option and benefit plans		441				(531)		972
Balance at September 30, 2019	$	10,764	$	5,870	$	42,085	$	(29,865)	$	(7,388)	$	62

Three months ended September 30, 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 June 30, 2018	$	10,428	$	5,559	$	39,442	$	(27,617)	$	(7,019)	$	63
Net income		1,546				1,543						3
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		(112)								(109)		(3)
Defined benefit pension and post-retirement plans adjustment		114								114		—
Cash flow hedging instruments		46								46		—
Total other comprehensive income (loss), net of tax		48
Dividends declared		(794)				(794)
Stock-based compensation		47		47
Reacquired stock		(1,058)						(1,058)
Issuances pursuant to stock option and benefit plans		94				(71)		165
Balance at September 30, 2018	$	10,311	$	5,606	$	40,120	$	(28,510)	$	(6,968)	$	63

Nine months ended September 30, 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		4,014				4,002						12
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		(441)								(433)		(8)
Defined benefit pension and post-retirement plans adjustment		344								344		—
Cash flow hedging instruments		147								147		—
Total other comprehensive income (loss), net of tax		50
Dividends declared		(2,406)				(2,406)
Stock-based compensation		245		245
Reacquired stock		(3,621)						(3,621)
Issuances pursuant to stock option and benefit plans		407				(591)		998
Balance at September 30, 2018	$	10,311	$	5,606	$	40,120	$	(28,510)	$	(6,968)	$	63

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

Three months ended September 30, 2019

							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, 2019, net of tax:	$	(1,912)	$	(5,369)	$	9	$	(7,272)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		(149)		—		31		(118)
Amounts reclassified out		—		101		(21)		80
Total other comprehensive income (loss), before tax		(149)		101		10		(38)
Tax effect		(51)		(25)		(2)		(78)
Total other comprehensive income (loss), net of tax		(200)		76		8		(116)
Balance at September 30, 2019, net of tax:	$	(2,112)	$	(5,293)	$	17	$	(7,388)

Nine months ended September 30, 2019

							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, 2018, net of tax:	$	(2,098)	$	(4,832)	$	64	$	(6,866)
Impact of adoption of ASU No. 2018-02 (See Note 1)		(13)		(817)		(23)		(853)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		(86)		153		14		81
Amounts reclassified out		142		310		(48)		404
Total other comprehensive income (loss), before tax		56		463		(34)		485
Tax effect		(57)		(107)		10		(154)
Total other comprehensive income (loss), net of tax		(1)		356		(24)		331
Balance at September 30, 2019, net of tax:	$	(2,112)	$	(5,293)	$	17	$	(7,388)

Three months ended September 30, 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 June 30, 2018, net of tax:	$	(1,962)	$	(5,046)	$	(11)	$	(7,019)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		(110)		—		22		(88)
Amounts reclassified out		—		150		37		187
Total other comprehensive income (loss), before tax		(110)		150		59		99
Tax effect		1		(36)		(13)		(48)
Total other comprehensive income (loss), net of tax		(109)		114		46		51
Balance at September 30, 2018, net of tax:	$	(2,071)	$	(4,932)	$	35	$	(6,968)

Nine months ended September 30, 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		(392)		—		122		(270)
Amounts reclassified out		—		452		99		551
Total other comprehensive income (loss), before tax		(392)		452		221		281
Tax effect		(41)		(108)		(74)		(223)
Total other comprehensive income (loss), net of tax		(433)		344		147		58
Balance at September 30, 2018, net of tax	$	(2,071)	$	(4,932)	$	35	$	(6,968)

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 subsequently 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)	2019		2018		2019		2018		Statement
Cumulative translation adjustment
Deconsolidation of Venezuelan subsidiary	$	—	$	—	$	(142)	$	—	Other income (expense), net
Total before tax		—		—		(142)		—
Tax effect		—		—		—		—	Provision for income taxes
Net of tax	$	—	$	—	$	(142)	$	—
Defined benefit pension and postretirement plans adjustments
Gains (losses) associated with defined benefit pension and postretirement plans amortization
Prior service benefit	$	18	$	20	$	50	$	58	See Note 11
Net actuarial loss		(119)		(170)		(358)		(510)	See Note 11
Deconsolidation of Venezuelan subsidiary		—		—		(2)		—	Other income (expense), net
Total before tax		(101)		(150)		(310)		(452)
Tax effect		25		36		70		108	Provision for income taxes
Net of tax	$	(76)	$	(114)	$	(240)	$	(344)
Cash flow hedging instruments gains (losses)
Foreign currency forward/option contracts	$	22	$	(37)	$	50	$	(98)	Cost of sales
Interest rate swap contracts		(1)		—		(2)		(1)	Interest expense
Total before tax		21		(37)		48		(99)
Tax effect		(4)		8		(9)		22	Provision for income taxes
Net of tax	$	17	$	(29)	$	39	$	(77)
Total reclassifications for the period, net of tax	$	(59)	$	(143)	$	(343)	$	(421)