3M 2013 Annual Report Download - page 28

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22
result of changes to the geographic mix of income before taxes and adjustments to its income tax reserves. These factors,
when compared to 2011, decreased the effective tax rate 0.9 percentage points.
The Company currently expects that its effective tax rate for total year 2014 will be approximately 28.0 to 29.0 percent.
The rate can vary from quarter to quarter due to discrete items, such as the settlement of income tax audits and changes
in tax laws, as well as recurring factors, such as the geographic mix of income before taxes.
Refer to Note 7 for further discussion of income taxes.
Net Income Attributable to Noncontrolling Interest:
(Millions)
2013
2012
2011
Net income attributable to noncontrolling interest
$
62
$
67 $
74
Net income attributable to noncontrolling interest represents the elimination of the income or loss attributable to non-3M
ownership interests in 3M consolidated entities. The changes in noncontrolling interest amounts are primarily related to
Sumitomo 3M Limited (Japan), which is 3M’s most significant consolidated entity with non-3M ownership interests. As of
December 31, 2013, 3M’s effective ownership in Sumitomo 3M Limited is 75 percent.
Currency Effects:
3M estimates that year-on-year currency effects, including hedging impacts, decreased net income attributable to 3M by
approximately $74 million and $103 million in 2013 and 2012, respectively. These estimates include the effect of
translating profits from local currencies into U.S. dollars; the impact of currency fluctuations on the transfer of goods
between 3M operations in the United States and abroad; and transaction gains and losses, including derivative
instruments designed to reduce foreign currency exchange rate risks and the negative impact of swapping Venezuelan
bolivars into U.S. dollars. 3M estimates that year-on-year derivative and other transaction gains and losses decreased net
income attributable to 3M by approximately $12 million in 2013 and increased net income attributable to 3M by
approximately $49 million in 2012.