3M 2005 Annual Report Download - page 77

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51
Supplemental Balance Sheet Information (continued)
(Millions) 2005 2004
Other liabilities
Non-funded pension and postretirement benefits $ 710 $ 737
Employee benefits 595 530
Product and other claims 322 356
Deferred income taxes 1,609 1,284
Minority interest in subsidiaries 311 253
Deferred income 45 55
Capital lease obligations 59 71
Other 215 246
Total other liabilities $3,866 $3,532
Accounts payable (included as a separate line item in the Consolidated Balance Sheet) includes drafts payable on
demand of $56 million at December 31, 2005, and $68 million at December 31, 2004.
NOTE 5. Supplemental Stockholders’ Equity and Comprehensive Income Information
Common stock ($.01 par value per share) of 3.0 billion shares is authorized, with 944,033,056 shares issued. During
the third quarter of 2003, $4 million was transferred within stockholders’ equity from “Capital in excess of par value” to
“Common stock” in connection with the two-for-one split of the Company’s common stock. Treasury stock is reported
at cost, with 189,494,669 shares at December 31, 2005, 170,514,775 shares at December 31, 2004, and
159,915,696 shares at December 31, 2003. Preferred stock, without par value, of 10 million shares is authorized but
unissued.
The components of the ending balances of accumulated other comprehensive income (loss) as of December 31
follow:
Accumulated Other Comprehensive Income (Loss) Unrealized Unrealized
Minimum gain (loss) gain (loss)
Cumulative pension on debt and on cash flow
translation liability equity hedging
(Millions) Total adjustment adjustment securities instruments
Balance at December 31, 2002 $(2,026) $ (858) $(1,130) $ 1 $(39)
Pre tax amount 370 634 (257) 2 (9)
Tax effect 102 16 84 (1) 3
Net-of-tax amount 472 650 (173) 1 (6)
Balance at December 31, 2003 (1,554) (208) (1,303) 2 (45)
Pre tax amount 2,413 483 1,924 - 6
Tax effect (727) 7 (731) - (3)
Net-of-tax amount 1,68
6
490 1,193 - 3
Balance at December 31, 2004 132 282 (110) 2 (42)
Pre tax amount (497) (597) (28) 2 126
Tax effect (46) 19 (18) (1) (46)
Net-of-tax amount (543) (578) (46) 1 80
Balance at December 31, 2005 $ (411) $ (296) $ (156) $ 3 $ 38
The minimum pension liability adjustment is calculated on an annual basis. If the accumulated benefit obligation
(ABO) exceeds the fair value of pension assets, the employer must recognize a liability that is at least equal to the