3M 2013 Annual Report Download - page 73

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67
material transfer from noncontrolling interest to 3M Company shareholders’ equity. In addition, during 2011, 3M sold a
noncontrolling interest in a newly formed subsidiary for an immaterial amount, which was also classified as other financing
activity in the consolidated statement of cash flows.
NOTE 6. Supplemental Cash Flow Information
(Millions)
2013
2012
2011
Cash income tax payments, net of refunds $
1,803 $
1,717 $
1,542
Cash interest payments 169 166 219
Capitalized interest 21 23 19
Cash interest payments include interest paid on debt and capital lease balances, including net interest payments/receipts
related to accreted debt discounts/premiums, as well as net interest payments/receipts associated with interest rate swap
contracts.
Individual amounts in the Consolidated Statement of Cash Flows exclude the impacts of acquisitions, divestitures and
exchange rate impacts, which are presented separately.
Transactions related to investing and financing activities with significant non-cash components are as follows:
• During the third quarter of 2013, 3M sold its equity interest in a non-strategic investment in exchange for a note
receivable of approximately $24 million, which is considered non-cash investing activity. As a result of this
transaction, in the third quarter of 2013, 3M recorded a pre-tax gain of $18 million in its Health Care business
segment. In October 2013, cash was received for the note receivable and is reflected in other investing activity in
the consolidated statement of cash flows for the total year 2013.
• During the second quarter of 2013, the Company’s Sumitomo 3M Limited subsidiary moved its administrative
headquarters to a new leased location and sold the former site under an installment sale arrangement. As a
result, at the time of the closing of the sale transaction, the Company received certain cash proceeds (included in
proceeds from sale of property, plant and equipment in the consolidated statement of cash flows) and recorded a
note receivable (due in quarterly installments through the first quarter of 2016) of $78 million and deferred profit of
$49 million (both based on the foreign currency exchange rate at the time of closing). Remaining quarterly
installments are due through the first quarter of 2016 and will be included in other investing activities in the
consolidated statement of cash flows. Deferred profit is reduced and recognized into income in connection with
such quarterly installments.
In addition, as discussed in Note 5, during the fourth quarter, 3M’s Board of Directors declared a first-quarter 2014
dividend of $0.855 per share (payable in March 2014). This reduced 3M’s stockholders equity and increased other
current liabilities as of December 31, 2013 by $567 million. 3M has historically declared and paid dividends in the
same quarter; however, in this case, the cash outlay will occur in the first quarter of 2014.