3M 2009 Annual Report Download - page 79

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73
NOTE 6. Supplemental Equity and Comprehensive Income Information
Common stock ($.01 par value per share) of 3.0 billion shares is authorized, with 944,033,056 shares issued.
Treasury stock is reported at cost, with 233,433,937 shares at December 31, 2009, 250,489,769 shares at
December 31, 2008, and 234,877,025 shares at December 31, 2007. Preferred stock, without par value, of 10 million
shares is authorized but unissued.
The components of other comprehensive income (loss) and accumulated other comprehensive income (loss)
attributable to 3M follow.
Accumulated Other Comprehensive Income (Loss) Attributable to 3M
(Millions)
Dec. 31,
2009
Dec. 31,
2008
Cumulative translation adjustment............................................................................
.
$ 122 $ (146)
Defined benefit pension and postretirement plans adjustment.................................
.
(3,831) (3,525)
Debt and equity securities, unrealized gain (loss) ....................................................
.
(9) (19)
Cash flow hedging instruments, unrealized gain (loss).............................................
.
(36) 44
Total accumulated other comprehensive income (loss)............................................
.
$ (3,754) $ (3,646)
Components of Comprehensive Income (Loss) Attributable to 3M
(Millions) 2009 2008 2007
Net income attributable to 3M..................................................... $ 3,193 $ 3,460 $ 4,096
Cumulative translation.................................................................... 288 (920) 456
Tax effect........................................................................................ (2) 32 76
Cumulative translation - net of tax ............................................. 286 (888) 532
Defined benefit pension and postretirement plans adjustment...... (462) (3,096) 941
Tax effect........................................................................................ 153 1,024 (327)
Defined benefit pension and postretirement plans
adjustment - net of tax ............................................................. (309) (2,072) 614
Debt and equity securities, unrealized gain (loss) ......................... 17 (18) (16)
Tax effect........................................................................................ (7) 7 6
Debt and equity securities, unrealized gain (loss) - net of tax 10 (11) (10)
Cash flow hedging instruments, unrealized gain (loss).................. (130) 124 (24)
Tax effect........................................................................................ 50 (52) 14
Cash flow hedging instruments, unrealized gain (loss) - net
of tax .......................................................................................... (80) 72 (10)
Total comprehensive income (loss) attributable to 3M............ $ 3,100 $ 561 $ 5,222
Reclassification adjustments are made to avoid double counting in comprehensive income items that are also
recorded as part of net income. Reclassifications to earnings from accumulated other comprehensive income
attributable to 3M that related to pension and postretirement expense in the income statement were $141 million pre-
tax ($92 million after-tax) in 2009, $79 million pre-tax ($52 million after-tax) in 2008, and $198 million pre-tax ($123
million after-tax) in 2007. These pension and postretirement expense amounts are shown in the table in Note 11 as
amortization of transition (asset) obligation, amortization of prior service cost (benefit) and amortization of net
actuarial (gain) loss. Cash flow hedging instruments reclassifications are provided in Note 12. Reclassifications to
earnings from accumulated other comprehensive income attributable to 3M for debt and equity securities primarily
relate to a loss of approximately $2 million pre-tax for 2009, as shown in the auction rate securities table in Note 13,
a loss of approximately $6 million pre-tax ($4 million after tax) for 2008, and was not material for 2007. Other
reclassification adjustments were not material. Income taxes are not provided for foreign translation relating to
permanent investments in international subsidiaries, but tax effects within cumulative translation does include
impacts from items such as net investment hedge transactions.