3M 2010 Annual Report Download - page 74

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68
NOTE 8. Income Taxes
Income Before Income Taxes
(Millions)
2010
2009
2008
United States ......................................................................................
$
2,778
$
2,338
$
2,251
International ........................................................................................
2,977
2,294
2,857
Total ................................................................................................
$
5,755
$
4,632
$
5,108
Provision for Income Taxes
(Millions)
2010
2009
2008
Currently payable
Federal ............................................................................................
$
837
$
88
$
882
State ................................................................................................
73
13
14
International ....................................................................................
796
586
820
Deferred
Federal ............................................................................................
55
489
(168
)
State ................................................................................................
43
56
34
International ....................................................................................
(212
)
156
6
Total ............................................................................................
$
1,592
$
1,388
$
1,588
Components of Deferred Tax Assets and Liabilities
(Millions)
2010
2009
Deferred tax assets:
Accruals not currently deductible
Employee benefit costs ...........................................................................................
$
99
$
168
Product and other claims ........................................................................................
148
160
Miscellaneous accruals ...........................................................................................
175
180
Pension costs ..............................................................................................................
724
852
Stock-based compensation .........................................................................................
501
473
Net operating/capital loss carryforwards .....................................................................
437
59
Foreign tax credits ......................................................................................................
281
286
Other - net ...................................................................................................................
46
—
Gross deferred tax assets ...............................................................................................
2,411
2,178
Valuation allowance ........................................................................................................
(128
)
(23
)
Total deferred tax assets ................................................................................................
$
2,283
$
2,155
Deferred tax liabilities:
Product and other insurance receivables ....................................................................
$
(59
)
$
(80
)
Accelerated depreciation ............................................................................................
(695
)
(571
)
Intangible amortization ................................................................................................
(823
)
(662
)
Other - net ...................................................................................................................
—
(5
)
Total deferred tax liabilities .............................................................................................
(1,577
)
(1,318
)
Net deferred tax assets ...................................................................................................
$
706
$
837
The net deferred tax assets are included as components of Other Current Assets, Other Assets, Other Current
Liabilities, and Other Liabilities within the Consolidated Balance Sheet. See Note 5 “Supplemental Balance Sheet
Information” for further details.