3M 2008 Annual Report Download - page 71

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NOTE 6. Supplemental Stockholders’ Equity and Accumulated Other 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 250,489,769 shares at December 31, 2008, 234,877,025 shares at
December 31, 2007, and 209,670,254 shares at December 31, 2006. 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)
(Millions) 2008 2007 2006
Cumulative translation adjustment
Balance at January 1...................................................................... $ 742 $ 210 $ (296 )
Pre-tax amount ........................................................................... (920 ) 456 503
Tax effect .................................................................................... 32 76 3
Net of tax amount ....................................................................... (888 ) 532 506
Balance at December 31................................................................ (146 ) 742 210
Defined benefit pension and postretirement plans adjustment
Balance at January 1...................................................................... (1,453 ) (2,067 ) (156 )
Pre-tax amount ........................................................................... (3,096 ) 941 (3,208 )
Tax effect .................................................................................... 1,024 (327 ) 1,297
Net of tax amount ....................................................................... (2,072 ) 614 (1,911 )
Balance at December 31................................................................ (3,525 ) (1,453 ) (2,067 )
Unrealized gain (loss) on debt and equity securities
Balance at January 1...................................................................... (8 ) 2 3
Pre-tax amount ........................................................................... (18 ) (16 ) (1 )
Tax effect .................................................................................... 7 6 —
Net of tax amount ....................................................................... (11 ) (10 ) (1 )
Balance at December 31................................................................ (19 ) (8 ) 2
Unrealized gain (loss) on cash flow hedging instruments
Balance at January 1...................................................................... (28 ) (18 ) 38
Pre-tax amount ........................................................................... 124 (24 ) (85)
Tax effect .................................................................................... (52 ) 14 29
Net of tax amount ....................................................................... 72 (10 ) (56 )
Balance at December 31................................................................ 44 (28 ) (18 )
Total accumulated other comprehensive income (loss)
Balance at January 1...................................................................... (747 ) (1,873 ) (411 )
Pre-tax amount ........................................................................... (3,910 ) 1,374 (2,791 )
Tax effect .................................................................................... 1,011 (248 ) 1,329
Net of tax amount ....................................................................... (2,899 ) 1,126 (1,462 )
Balance at December 31................................................................ $ (3,646 ) $ (747 ) $ (1,873 )
In September 2006, the FASB issued SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106 and 132(R).” This standard eliminated the
requirement for a “minimum pension liability adjustment” that was previously required under SFAS No. 87 and
required employers to recognize the underfunded or overfunded status of a defined benefit plan as an asset or
liability in its statement of financial position. In 2006, as a result of the implementation of SFAS No. 158, the Company
recognized an after-tax decrease in accumulated other comprehensive income of $1.187 billion and $513 million for
the U.S. and International pension benefit plans, respectively, and $218 million for the postretirement benefit plans.
Reclassification adjustments are made to avoid double counting in comprehensive income items that are also
recorded as part of net income. In 2008, $79 million pre-tax ($52 million after-tax), were reclassified to earnings from
accumulated other comprehensive income to pension and postretirement expense in the income statement. In 2007,
$198 million pre-tax ($123 million after-tax) were reclassified to earnings from accumulated other comprehensive