3M 2008 Annual Report Download - page 72

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66
income to pension and postretirement expense in the income statement. These pension and postretirement expense
amounts are shown in the table in Note 11 as amortization of transition (asset) obligation, amortization of prior service
cost (benefit) and amortization of net actuarial (gain) loss. Cash flow hedging instruments reclassifications are
provided in Note 12. Reclassifications to earnings from accumulated other comprehensive income for debt and equity
securities, which primarily include marketable securities, totaled a loss of approximately $6 million pre-tax ($4 million
after tax) for 2008, as shown in the auction rate securities table in Note 13. Other reclassification adjustments were
not material. 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.
NOTE 7. Supplemental Cash Flow Information
(Millions) 2008 2007 2006
Cash income tax payments.... $ 1,778
$ 1,999 $ 1,842
Cash interest payments ......... 234
162 119
Capitalized interest................. 28
25 16
Individual amounts in the Consolidated Statement of Cash Flows exclude the impacts of acquisitions, divestitures
and exchange rate impacts, which are presented separately. “Other — net” in the Consolidated Statement of Cash
Flows within operating activities in 2008, 2007 and 2006 includes changes in liabilities related to 3M’s restructuring
actions (Note 4).
Transactions related to investing and financing activities with significant non-cash components are as follows: In
2007, 3M purchased certain assets of Diamond Productions, Inc. for approximately 150 thousand shares of 3M
common stock, which has a market value of approximately $13 million at the acquisition’s measurement date.
Liabilities assumed from acquisitions are provided in the tables in Note 2.