v3.6.0.2
Supplemental Equity and Comprehensive Income Information
 12 Months Ended
Dec. 31, 2016
Supplemental Equity and Comprehensive Income Information  
Supplemental Equity and Comprehensive Income Information

NOTE 6.  Supplemental Equity and Comprehensive Income Information

 

Common stock ($.01 par value per share) of 3.0 billion shares is authorized, with 944,033,056 shares issued. Treasury stock is reported at cost, with 347,306,778 shares at December 31, 2016,  334,702,932 shares at December 31, 2015, and 308,898,462 shares at December 31, 2014. Preferred stock, without par value, of 10 million shares is authorized but unissued.

 

Cash dividends declared and paid totaled $1.11 per share for each quarter in 2016, which resulted in total year declared dividends of $4.44 per share. In 2015, 3M’s Board of Directors declared a second, third, and fourth quarter dividend of $1.025 per share, which resulted in total year 2015 declared dividends of $3.075 per share. In December 2014, 3M’s Board of Directors declared a first quarter 2015 dividend of $1.025 per share (paid in March 2015), which when added to second, third and fourth quarter 2014 declared dividends of $0.855 per share, resulted in total year 2014 declared dividends of $3.59 per share. In December 2013, 3M’s Board of Directors declared a first quarter 2014 dividend of $0.855 per share (paid in March 2014).

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Defined Benefit

 

Debt and

 

Cash Flow

 

Accumulated

 

 

 

 

 

 

Pension and

 

Equity

 

Hedging

 

Other

 

 

 

Cumulative

 

Postretirement

 

Securities,

 

Instruments,

 

Comprehensive

 

 

 

Translation

 

Plans

 

Unrealized

 

Unrealized

 

Income

 

(Millions)

 

Adjustment

 

Adjustment

 

Gain (Loss)

 

Gain (Loss)

 

(Loss)

 

Balance at December 31, 2013, net of tax:

 

$
(188)

 

$
(3,715)

 

$
(2)

 

$
(8)

 

$
(3,913)

 

Other comprehensive income (loss), before tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts before reclassifications

 

 
(856)

 

 
(2,638)

 

 
2

 

 
171

 

 
(3,321)

 

Amounts reclassified out

 

 

 —

 

 
360

 

 
1

 

 
(4)

 

 
357

 

Total other comprehensive income (loss), before tax

 

 
(856)

 

 
(2,278)

 

 
3

 

 
167

 

 
(2,964)

 

Tax effect

 

 
(92)

 

 
716

 

 
(1)

 

 
(60)

 

 
563

 

Total other comprehensive income (loss), net of tax

 

 
(948)

 

 
(1,562)

 

 
2

 

 
107

 

 
(2,401)

 

Impact from purchase of subsidiary shares

 

 
41

 

 
(16)

 

 

 —

 

 

 —

 

 
25

 

Balance at December 31, 2014, net of tax:

 

$
(1,095)

 

$
(5,293)

 

$

 —

 

$
99

 

$
(6,289)

 

Other comprehensive income (loss), before tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts before reclassifications

 

 
(447)

 

 
367

 

 

 —

 

 
212

 

 
132

 

Amounts reclassified out

 

 

 —

 

 
537

 

 

 —

 

 
(174)

 

 
363

 

Total other comprehensive income (loss), before tax

 

 
(447)

 

 
904

 

 

 —

 

 
38

 

 
495

 

Tax effect

 

 
(137)

 

 
(415)

 

 

 —

 

 
(13)

 

 
(565)

 

Total other comprehensive income (loss), net of tax

 

 
(584)

 

 
489

 

 

 —

 

 
25

 

 
(70)

 

Balance at December 31, 2015, net of tax

 

$
(1,679)

 

$
(4,804)

 

$

 —

 

$
124

 

$
(6,359)

 

Other comprehensive income (loss), before tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts before reclassifications

 

 
(244)

 

 
(1,122)

 

 

 —

 

 
57

 

 
(1,309)

 

Amounts reclassified out

 

 

 —

 

 
421

 

 

 —

 

 
(109)

 

 
312

 

Total other comprehensive income (loss), before tax

 

 
(244)

 

 
(701)

 

 

 —

 

 
(52)

 

 
(997)

 

Tax effect

 

 
(85)

 

 
177

 

 

 —

 

 
19

 

 
111

 

Total other comprehensive income (loss), net of tax

 

 
(329)

 

 
(524)

 

 

 —

 

 
(33)

 

 
(886)

 

Balance at December 31, 2016, net of tax:

 

$
(2,008)

 

$
(5,328)

 

$

 —

 

$
91

 

$
(7,245)

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts Reclassified from

 

 

 

 

 

Accumulated Other Comprehensive Income

 

 

 

Details about Accumulated Other

    

Year ended

    

Year ended

    

Year ended

    

 

 

Comprehensive Income Components

 

December 31,

 

December 31,

 

December 31,

 

Location on Income

 

(Millions)

 

2016

 

2015

 

2014

 

Statement

 

Gains (losses) associated with, defined benefit pension and postretirement plans amortization

 

 

 

 

 

 

 

 

 

 

 

 

Transition asset

 

$
1

 

$
1

 

$
1

 

See Note 11

 

Prior service benefit

 

 
92

 

 
79

 

 
59

 

See Note 11

 

Net actuarial loss

 

 
(506)

 

 
(626)

 

 
(420)

 

See Note 11

 

Curtailments/Settlements

 

 
(8)

 

 
9

 

 

 —

 

See Note 11

 

Total before tax

 

 
(421)

 

 
(537)

 

 
(360)

 

 

 

Tax effect

 

 
148

 

 
176

 

 
122

 

Provision for income taxes

 

Net of tax

 

$
(273)

 

$
(361)

 

$
(238)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt and equity security gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

Sales or impairments of securities

 

$

 —

 

$

 —

 

$
(1)

 

Selling, general and administrative expenses

 

Total before tax

 

 

 —

 

 

 —

 

 
(1)

 

 

 

Tax effect

 

 

 —

 

 

 —

 

 

 —

 

Provision for income taxes

 

Net of tax

 

$

 —

 

$

 —

 

$
(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedging instruments gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward/option contracts

 

$
110

 

$
178

 

$
3

 

Cost of sales

 

Commodity price swap contracts

 

 

 —

 

 
(2)

 

 
2

 

Cost of sales

 

Interest rate swap contracts

 

 
(1)

 

 
(2)

 

 
(1)

 

Interest expense

 

Total before tax

 

 
109

 

 
174

 

 
4

 

 

 

Tax effect

 

 
(39)

 

 
(63)

 

 
(1)

 

Provision for income taxes

 

Net of tax

 

$
70

 

$
111

 

$
3

 

 

 

Total reclassifications for the period, net of tax

 

$
(203)

 

$
(250)

 

$
(236)

 

 

 

 

Purchase of Subsidiary Shares

 

On September 1, 2014, 3M (via Sumitomo 3M Limited) purchased Sumitomo Electric Industries, Ltd.’s 25 percent interest in 3M’s consolidated Sumitomo 3M Limited subsidiary for 90 billion Japanese Yen. Upon completion of the transaction, 3M owned 100 percent of Sumitomo 3M Limited. This transaction was recorded as a financing activity (Purchase of noncontrolling interest) in the statement of cash flows.

 

In April 2014, 3M purchased the remaining noncontrolling interest in a consolidated 3M subsidiary for an immaterial amount, which was classified as a financing activity (Purchase of noncontrolling interest) in the consolidated statement of cash flows.

 

The following table summarizes the effects of these 2014 transactions on equity attributable to 3M Company shareholders:

 

 

 

 

 

 

 

Year ended 

 

(Millions)

 

December 31, 2014

 

Net income attributable to 3M

 

$
4,956

 

Impact of purchase of subsidiary shares

 

 
(409)

 

Change in 3M Company shareholders’ equity from net income

 

 

 

 

attributable to 3M and impact of purchase of subsidiary shares

 

$
4,547