3M 2009 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 of the 2009 3M annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

74
Transfer of Ownership Interest Involving Non-Wholly Owned Subsidiaries
During 2009, a wholly owned subsidiary that, in turn, owned a portion of the Company’s majority owned Sumitomo
3M Limited entity, was transferred to another subsidiary that is majority, rather than wholly, owned. As a result of the
transaction, 3M’s effective ownership in Sumitomo 3M Limited was reduced from 75 percent to 71.5 percent. The
transfer was effected to further align activities in the associated region and to simplify the Company’s ownership
structure. Because the Company retained its controlling interest in the subsidiaries involved, the transfer resulted in a
decrease in 3M Company shareholders’ equity and an increase in noncontrolling interest of $81 million. The following
table summarizes the effects of this transfer on equity attributable to 3M Company shareholders.
(Millions)
Twelve months
ended
Dec. 31, 2009
Net income attributable to 3M ..............................................................................................................
.
$ 3,193
Transfer to noncontrolling interest........................................................................................................
.
(81)
Change in 3M Company shareholders’ equity from net income attributable to 3M and transfers to
noncontrolling interest ......................................................................................................................
.
$ 3,112
NOTE 7. Supplemental Cash Flow Information
(Millions) 2009 2008 2007
Cash income tax payments............................................................ $ 834 $ 1,778 $ 1,999
Cash interest payments ................................................................. 236 196 162
Capitalized interest......................................................................... 27 28 25
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 2009, 2008 and 2007 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: During
2009, 3M recorded a capital lease asset and obligation of approximately $50 million related to an IT investment with
an amortization period of seven years and contributed $600 million to its U.S. defined benefit pension plan in shares
of the Company’s common stock. 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.