3M 2011 Annual Report Download - page 72

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NOTE 6. Supplemental 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.
Treasury stock is reported at cost, with 249,063,015 shares at December 31, 2011, 232,055,448 shares at
December 31, 2010, and 233,433,937 shares at December 31, 2009. Preferred stock, without par value, of 10 million
shares is authorized but unissued.
The components of other comprehensive income (loss) and accumulated other comprehensive income (loss)
attributable to 3M follow.
Accumulated Other Comprehensive Income (Loss) Attributable to 3M
(Millions)
Dec. 31,
2011
Dec. 31,
2010
Cumulative translation adjustment .................................................................... $ 114 $ 374
Defined benefit pension and postretirement plans adjustment ......................... (5,155) (3,879 )
Debt and equity securities, unrealized gain (loss) ............................................ (6) (6 )
Cash flow hedging instruments, unrealized gain (loss) ..................................... 22 (32 )
Total accumulated other comprehensive income (loss) .................................... $ (5,025) $ (3,543 )
Components of Comprehensive Income (Loss) Attributable to 3M
Years ended December 31
(Millions) 2011 2010 2009
Net income attributable to 3M ............................ $ 4,283 $ 4,085 $ 3,193
Cumulative translation .................................... (253 ) 213 288
Tax effect ............................................... (7 ) (8) (2 )
Cumulative translation - net of tax ........................ (260 ) 205 286
Defined benefit pension and postretirement plans adjustment . . (1,977 ) (68) (442 )
Tax effect ............................................... 701 28 133
Defined benefit pension and postretirement plans adjustment -
net of tax ............................................. (1,276 ) (40) (309 )
Debt and equity securities, unrealized gain (loss) ............. — 5 17
Tax effect ............................................... —
(2) (7 )
Debt and equity securities, unrealized gain (loss) - net of tax —
3 10
Cash flow hedging instruments, unrealized gain (loss) ......... 84 6 (130 )
Tax effect ............................................... (30 ) (2) 50
Cash flow hedging instruments, unrealized gain (loss) - net of
tax ................................................... 54
4 (80 )
Total comprehensive income (loss) attributable to 3M ..... $ 2,801 $ 4,257 $ 3,100
Reclassification adjustments are made to avoid double counting in comprehensive income items that are also
recorded as part of net income. Reclassifications to earnings from accumulated other comprehensive income
including noncontrolling interest that related to pension and postretirement expense in the income statement were
$475 million pre-tax ($307 million after-tax) in 2011, $306 million pre-tax ($197 million after-tax) in 2010, and $141
million pre-tax ($92 million after-tax) in 2009. These pension and postretirement expense pre-tax 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 were $10
million pre-tax ($6 million after-tax) in 2011, not material for 2010, and as shown in the auction rate securities table in
Note 13, primarily relate to a loss of approximately $2 million pre-tax for 2009. 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 do include impacts from items such as net
investment hedge transactions.