3M 2006 Annual Report Download - page 84

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provision includes a benefit for the pension contributions; the deferred tax provision includes a cost for the related
temporary difference. In addition, the Company implHPHQWHG6)$61R³(PSOR\HUV¶$FFRXQWLQJIRU'HILQHG
Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106 and 132(R) in
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DGGLWLRQDOREOLJDWLRQLQDGGLWLRQWRWKHDQQXDOSUovision for deferred income tax expense.
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for Uncertainty in Income Taxes, an Interpretation of F$6%6WDWHPHQW1R´),1SUHVFULEHVDPRUHOLNHO\WKDQ
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classification of current and deferred income tax assets and OLDELOLWLHVDFFRXQWLQJIRULQWHUHVWDQGSHQDOWLHVDVVRFLDWHG
ZLWKWD[SRVLWLRQVDFFRXQWLQJIRULQFRPHWD[HVLQLQWHULPperiods, and income tax disclosures. This Interpretation is
effective as of January 1, 2007 and the cumulative effects, LIDQ\RIDSSO\LQJWKLV,QWHUSUHWDWLRQZLOOEHUHFRUGHGDVDQ
DGMXVWPHQWWRUHWDLQHGHDUQLQJVDVRI-DQXDU\7he Company does not expect the adoption of FIN 48 to have
a material impact on its consolidated results of operations or financial condition.
As a result of certain employment commitments and capital investments mDGHE\0LQFRPHIURPPDQXIDFWXULQJ
activities in certain countries is subject to reduced tax rates or, in some cases, LVH[HPSWIURPWD[IRU\HDUVWKURXJK
The income tax benefits attributable to the tax status of these subsidiaries are estimated to be $20 million (3 cents per
diluted share) in 2006, $23 million (3 cents per diluted share) in 2005, and $32 million (4 cents per diluted share) in 2004.
The Company has not provided deferred taxes on unremitted HDUQLQJVDWWULEXWDEOHWRLQWHUQDWLRQDOFRPSDQLHVWKDW
have been considered to be reinvested indefinitely. TKHVHHDUQLQJVUHODWHWRRQJRLQJRSHUDWLRQVDQGZHUH
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practicable to determine the income tax liability that would be SD\DEOHLIVXFKHDUQLQJVZHUHQRWLQGHILQLWHO\UHLQYHVWHG
NOTE 9. Marketable Securities
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summary of amounts recorded on the Consolidated Balance SKHHWIRUPDUNHWDEOHVHFXULWLHVFXUUHQWDQGQRQFXUUHQW
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(Millions) 2006
Auction rate securities $377
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JURVVUHDOL]HGORVVHVRQVDOHVRIPDUNHWDEOHVHFXULWLHVZHre also not material. There were no impairment losses
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upon sale. Other comprehensive income activity for these securities in 2006 was not material.
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material. 3M has both the intent and ability to hold the securities for the time necessary to recover the cost basis.