Supplemental Equity and Comprehensive Income Information

6 Months Ended

Jun. 30, 2020

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 $1.47 and $1.44 per share for the first and second quarters 2020 and 2019, respectively, or $2.94 and $2.88 per share for the first six months of 2020 and 2019, respectively.

Consolidated Changes in Equity

Three months ended June 30, 2020

			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, 2020	$	10,209	$	6,033	$	42,345	$	(29,817)	$	(8,414)	$	62
Net income		1,287				1,290						(3)
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		106								106		—
Defined benefit pension and post-retirement plans adjustment		58								58		—
Cash flow hedging instruments		(36)								(36)		—
Total other comprehensive income (loss), net of tax		128
Dividends declared		(846)				(846)
Purchase of subsidiary shares		(1)										(1)
Stock-based compensation		50		50
Reacquired stock		—						—
Issuances pursuant to stock option and benefit plans		88				(30)		118
Balance at June 30, 2020	$	10,915	$	6,083	$	42,759	$	(29,699)	$	(8,286)	$	58

Six months ended June 30, 2020

			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, 2019	$	10,126	$	5,916	$	42,135	$	(29,849)	$	(8,139)	$	63
Net income		2,581				2,582						(1)
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		(338)								(335)		(3)
Defined benefit pension and post-retirement plans adjustment		177								177		—
Cash flow hedging instruments		11								11		—
Total other comprehensive income (loss), net of tax		(150)
Dividends declared		(1,693)				(1,693)
Purchase of subsidiary shares		(1)										(1)
Stock-based compensation		167		167
Reacquired stock		(356)						(356)
Issuances pursuant to stock option and benefit plans		241				(265)		506
Balance at June 30, 2020	$	10,915	$	6,083	$	42,759	$	(29,699)	$	(8,286)	$	58

Three months ended June 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 March 31, 2019	$	9,757	$	5,764	$	41,159	$	(29,668)	$	(7,552)	$	54
Net income		1,131				1,127						4
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		123								122		1
Defined benefit pension and post-retirement plans adjustment		196								196		—
Cash flow hedging instruments		(38)								(38)		—
Total other comprehensive income (loss), net of tax		281
Dividends declared		(830)				(830)
Stock-based compensation		57		57
Reacquired stock		(404)						(404)
Issuances pursuant to stock option and benefit plans		150				(94)		244
Balance at June 30, 2019	$	10,142	$	5,821	$	41,362	$	(29,828)	$	(7,272)	$	59

Six months ended June 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*		—				853				(853)
Impact of adoption of ASU No. 2016-02*		14				14
Net income		2,024				2,018						6
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		200								199		1
Defined benefit pension and post-retirement plans adjustment		280								280		—
Cash flow hedging instruments		(32)								(32)		—
Total other comprehensive income (loss), net of tax		448
Dividends declared		(1,660)				(1,660)
Stock-based compensation		169		169
Reacquired stock		(1,070)						(1,070)
Issuances pursuant to stock option and benefit plans		369				(499)		868
Balance at June 30, 2019	$	10,142	$	5,821	$	41,362	$	(29,828)	$	(7,272)	$	59

*See Note 1 in 3M’s 2019 Annual Report on Form 10-K.

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

Three months ended June 30, 2020

							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, 2020, net of tax:	$	(2,340)	$	(6,090)	$	16	$	(8,414)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		104		(80)		(15)		9
Amounts reclassified out		—		162		(31)		131
Total other comprehensive income (loss), before tax		104		82		(46)		140
Tax effect		2		(24)		10		(12)
Total other comprehensive income (loss), net of tax		106		58		(36)		128
Balance at June 30, 2020, net of tax:	$	(2,234)	$	(6,032)	$	(20)	$	(8,286)

Six months ended June 30, 2020

							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, 2019, net of tax:	$	(1,899)	$	(6,209)	$	(31)	$	(8,139)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		(335)		(80)		62		(353)
Amounts reclassified out		—		326		(47)		279
Total other comprehensive income (loss), before tax		(335)		246		15		(74)
Tax effect		—		(69)		(4)		(73)
Total other comprehensive income (loss), net of tax		(335)		177		11		(147)
Balance at June 30, 2020, net of tax:	$	(2,234)	$	(6,032)	$	(20)	$	(8,286)

Three months ended June 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 March 31, 2019, net of tax:	$	(2,034)	$	(5,565)	$	47	$	(7,552)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		(40)		153		(30)		83
Amounts reclassified out		142		105		(20)		227
Total other comprehensive income (loss), before tax		102		258		(50)		310
Tax effect		20		(62)		12		(30)
Total other comprehensive income (loss), net of tax		122		196		(38)		280
Balance at June 30, 2019, net of tax:	$	(1,912)	$	(5,369)	$	9	$	(7,272)

Six months ended June 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*		(13)		(817)		(23)		(853)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		63		153		(17)		199
Amounts reclassified out		142		209		(27)		324
Total other comprehensive income (loss), before tax		205		362		(44)		523
Tax effect		(6)		(82)		12		(76)
Total other comprehensive income (loss), net of tax		199		280		(32)		447
Balance at June 30, 2019, net of tax	$	(1,912)	$	(5,369)	$	9	$	(7,272)

*See Note 1 in 3M’s 2019 Annual Report on Form 10-K.

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 June 30,				Six months ended June 30,				Location on Income
(Millions)	2020		2019		2020		2019		Statement
Cumulative translation adjustment
Deconsolidation of Venezuelan subsidiary	$	—	$	(142)	$	—	$	(142)	Other income (expense), net
Total before tax		—		(142)		—		(142)
Tax effect		—		—		—		—	Provision for income taxes
Net of tax	$	—	$	(142)	$	—	$	(142)
Defined benefit pension and postretirement plans adjustments
Gains (losses) associated with defined benefit pension and postretirement plans amortization
Transition asset	$	—	$	—	$	(1)	$	—	See Note 11
Prior service benefit		16		16	$	31	$	32	See Note 11
Net actuarial loss		(177)		(119)		(354)		(239)	See Note 11
Curtailments/Settlements		(1)		—		(2)		—	See Note 11
Deconsolidation of Venezuelan subsidiary		—		(2)		—		(2)	Other income (expense), net
Total before tax		(162)		(105)		(326)		(209)
Tax effect		37		25		82		45	Provision for income taxes
Net of tax	$	(125)	$	(80)	$	(244)	$	(164)
Cash flow hedging instruments gains (losses)
Foreign currency forward/option contracts	$	33	$	21	$	51	$	28	Cost of sales
Interest rate contracts		(2)		(1)		(4)		(1)	Interest expense
Total before tax		31		20		47		27
Tax effect		(7)		(4)		(11)		(5)	Provision for income taxes
Net of tax	$	24	$	16	$	36	$	22
Total reclassifications for the period, net of tax	$	(101)	$	(206)	$	(208)	$	(284)