NOTE 20. Quarterly Data (Unaudited)


(Millions, except per-share amounts)	First		Second		Third		Fourth		Year
2018	Quarter		Quarter		Quarter		Quarter		2018
Net sales	$	8,278	$	8,390	$	8,152	$	7,945	$	32,765
Cost of sales		4,236		4,227		4,159		4,060		16,682
Net income including noncontrolling interest		606		1,862		1,546		1,349		5,363
Net income attributable to 3M		602		1,857		1,543		1,347		5,349
Earnings per share attributable to 3M common shareholders - basic		1.01		3.14		2.64		2.32		9.09
Earnings per share attributable to 3M common shareholders - diluted		0.98		3.07		2.58		2.27		8.89


(Millions, except per-share amounts)	First		Second		Third		Fourth		Year
2017	Quarter		Quarter		Quarter		Quarter		2017
Net sales	$	7,685	$	7,810	$	8,172	$	7,990	$	31,657
Cost of sales		3,882		4,020		4,059		4,094		16,055
Net income including noncontrolling interest		1,326		1,585		1,433		525		4,869
Net income attributable to 3M		1,323		1,583		1,429		523		4,858
Earnings per share attributable to 3M common shareholders - basic		2.21		2.65		2.39		0.88		8.13
Earnings per share attributable to 3M common shareholders - diluted		2.16		2.58		2.33		0.85		7.93

Gross profit is calculated as net sales minus cost of sales.

In the first quarter of 2018, the resolution of the State of Minnesota Natural Resource Damages (NRD) lawsuit reduced net income by $710 million, or $1.16 per diluted share. Refer to Note 16 for additional details. Additionally, the first quarter of 2018 was impacted by a measurement period adjustment related to the enactment of the Tax Cuts and Jobs Act (TCJA), which reduced net income by $217 million, or $0.36 per diluted share. Refer to Note 10 for additional details.

In the fourth quarter of 2018, the Company’s ongoing IRS examination under the Compliance Assurance Process (CAP) and new guidance released under the Tax Cuts and Jobs Act resulted in a charge that reduced net income by $60 million, or $0.11 per diluted share. Additionally, in the fourth quarter of 2018, the Company finalized the tax impact related to TCJA with a reversal of previously recorded tax expense that increased net income by $41 million, or $0.07 per diluted share. On a combined basis, these items, including the impacts detailed above for the first quarter of 2018, reduced net income by $946 million, or $1.57 per diluted share in 2018.

Fourth quarter and year 2017 were impacted by the enactment of the Tax Cuts and Jobs Act in December 2017, which reduced net income by $762 million and reduced diluted earnings per share by $1.25 in the fourth quarter and $1.24 for year 2017. Refer to Note 10 for additional details.