3M 2010 Annual Report Download - page 71

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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 232,055,448 shares at December 31, 2010, 233,433,937 shares at
December 31, 2009, and 250,489,769 shares at December 31, 2008. 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,
2010
Dec. 31,
2009
Cumulative translation adjustment ............................................................................
$
374
$
122
Defined benefit pension and postretirement plans adjustment .................................
(3,879
)
(3,831
)
Debt and equity securities, unrealized gain (loss) ....................................................
(6
)
(9
)
Cash flow hedging instruments, unrealized gain (loss) .............................................
(32
)
(36
)
Total accumulated other comprehensive income (loss) ............................................
$
(3,543
)
$
(3,754
)
Components of Comprehensive Income (Loss) Attributable to 3M
Years ended December 31
(Millions)
2010
2009
2008
Net income attributable to 3M ....................................................
$
4,085
$
3,193
$
3,460
Cumulative translation ...................................................................
213
288
(920
)
Tax effect .......................................................................................
(8
)
(2
)
32
Cumulative translation - net of tax ............................................
205
286
(888
)
Defined benefit pension and postretirement plans adjustment .....
(68
)
(442
)
(3,258
)
Tax effect .......................................................................................
28
133
1,186
Defined benefit pension and postretirement plans
adjustment - net of tax
............................................................
(40
)
(309
)
(2,072
)
Debt and equity securities, unrealized gain (loss) ........................
5
17
(18
)
Tax effect .......................................................................................
(2
)
(7
)
7
Debt and equity securities, unrealized gain (loss) - net of tax
3
10
(11
)
Cash flow hedging instruments, unrealized gain (loss) .................
6
(130
)
124
Tax effect .......................................................................................
(2
)
50
(52
)
Cash flow hedging instruments, unrealized gain (loss)
- net
of tax .........................................................................................
4
(80
)
72
Total comprehensive income (loss) attributable to 3M ...........
$
4,257
$
3,100
$
561
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 that
related to pension and postretirement expense in the income statement were $306 million pre-tax ($197 million after-
tax) in 2010, $141 million pre-tax ($92 million after-tax) in 2009, and $79 million pre-tax ($52 million after-tax) in
2008. These pension and postretirement expense pre-tax 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 for debt and equity securities were not material for 2010, and as shown in
the auction rate securities table in Note 13, primarily relate to a loss of approximately $2 million pre-tax for 2009 and
a loss of approximately $6 million pre-tax for 2008. 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.