3M 2014 Annual Report Download - page 74

Download and view the complete annual report

Please find page 74 of the 2014 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

68
(Millions)
Year ended December
31, 2014
Net income attributable to 3M
$
4,956
Impact of purchase of subsidiary shares
(409)
Change in 3M Company shareholders’ equity from net income attributable to 3M and
impact of purchase of subsidiary shares
$
4,547
In March 2013, 3M sold shares in 3M India Limited, a subsidiary of the Company, in return for $8 million. The
noncontrolling interest shares of this subsidiary trade on a public exchange in India. This sale of shares complied with an
amendment to Indian securities regulations that required 3M India Limited, as a listed company, to achieve a minimum
public shareholding of at least 25 percent. As a result of this transaction, 3M’s ownership in 3M India Limited was reduced
from 76 percent to 75 percent. The $8 million received in the first quarter of 2013 was classified as other financing activity
in the consolidated statement of cash flows. Because the Company retained its controlling interest, the sale resulted in an
increase in 3M Company shareholder’s equity of $7 million and an increase in noncontrolling interest of $1 million.
NOTE 6. Supplemental Cash Flow Information
(Millions)
2014
2013
2012
Cash income tax payments, net of refunds
$
1,968 $
1,803
$
1,717
Cash interest payments 178 169 166
Capitalized interest 15 21 23
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 fourth quarter of 2014, 3M sold and leased-back, under a capital lease, certain recently constructed
machinery and equipment in return for a municipal bond with the City of Nevada, Missouri valued at
approximately $15 million as of the transaction date.
• 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, in the fourth quarter of 2014, 3M’s Board of Directors declared a first-quarter 2015
dividend of $1.025 per share (payable in March 2015), which reduced 3M’s stockholders equity and increased other
current liabilities as of December 2014 by $648 million. In the fourth quarter of 2013, 3M’s Board of Directors declared
a first-quarter 2014 dividend of $0.855 per share (paid in March 2014). This reduced 3M’s stockholders equity and
increased other current liabilities as of December 31, 2013 by $567 million.