3M 2015 Annual Report Download - page 74
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ProvisionforIncomeTaxes
(Millions) 2015 2014 2013
Currentlypayable
Federal $ 1,338 $ 1,103 $ 948
State 101 108 91
International 566 1,008 901
Deferred
Federal (55) (171) (123)
State 6 (9) (2)
International 26 (11) 26
Total $ 1,982 $ 2,028 $ 1,841
ComponentsofDeferredTaxAssetsandLiabilities
(Millions) 2015 2014
Deferredtaxassets:
Accrualsnotcurrentlydeductible
Employeebenefitcosts $ 175 $ 148
Productandotherclaims 146 152
Miscellaneousaccruals 114 137
Pensioncosts 1,120 1,312
Stock-basedcompensation 305 290
Netoperating/capitallosscarryforwards 109 175
Foreigntaxcredits 25 360
Inventory 46 52
Other — 30
Grossdeferredtaxassets 2,040 2,656
Valuationallowance (31) (22)
Totaldeferredtaxassets $ 2,009 $ 2,634
Deferredtaxliabilities:
Productandotherinsurancereceivables $ (28) $ (31)
Accelerateddepreciation (736) (804)
Intangibleamortization (1,017) (719)
Currencytranslation (199) (91)
Other (70) —
Totaldeferredtaxliabilities $ (2,050) $ (1,645)
Netdeferredtaxassets(liabilities) $ (41) $ 989
ThenetdeferredtaxassetsareincludedascomponentsofOtherAssetsandOtherLiabilitieswithintheConsolidatedBalanceSheet.
SeeNote5“SupplementalBalanceSheetInformation”forfurtherdetails.
AsofDecember31,2015,theCompanyhadtaxeffectedoperatinglosses,capitallosses,andtaxcreditcarryoversforfederal
(approximately$31million),state(approximately$2million),andinternational(approximately$76million),withallamounts
beforevaluationallowances.Thefederaltaxattributecarryoverswillexpireafter15to20years,thestateafterfiveto10years,and
themajorityofinternationalafterfouryearswiththeremaininginternationalexpiringinoneyearorwithanindefinitecarryover
period.Thetaxattributesbeingcarriedoverariseascertainjurisdictionsmayhavetaxlossesormayhaveinabilitiestoutilizecertain
losseswithoutthesametypeoftaxableincome.AsofDecember31,2015,theCompanyhasprovided$31millionofvaluation
allowanceagainstcertainofthesedeferredtaxassetsbasedonmanagement’sdeterminationthatitismore-likely-than-notthatthe
taxbenefitsrelatedtotheseassetswillnotberealized.
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