Supplemental Equity and Comprehensive Income Information

12 Months Ended

Dec. 31, 2020

Supplemental Equity and Comprehensive Income Information

Supplemental Equity and Comprehensive Income Information

NOTE 8. 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 as of December 31, 2020, 2019 and 2018. Preferred stock, without par value, of 10 million shares is authorized but unissued.

Cash dividends declared and paid totaled $1.47, $1.44, and $1.36 per share for each quarter in 2020, 2019 and 2018, respectively, which resulted in total year declared and paid dividends of $5.88, $5.76, and $5.44 per share, respectively.

In connection with 3M’s January 1, 2019 adoption of ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, and ASU No. 2016-02, Leases, the Company recorded an increase in retained earnings of approximately $0.9 billion (with offsetting increase to accumulated other comprehensive loss for the same amount) and $14 million, respectively.

Transfer of Ownership Interest Involving Non-Wholly Owned Subsidiaries

During 2018, a wholly owned subsidiary in India was sold to 3M India Limited, which is 75 percent owned by the Company. Because the Company retained its controlling interest in the subsidiary involved, the sale resulted in a deemed dividend to 3M, resulting in an increase in 3M Company shareholders’ equity and a decrease in noncontrolling interest. Refer to the Consolidated Statement of Changes in Equity for further details.

Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component

			Defined Benefit		Cash Flow		Total
			Pension and		Hedging		Accumulated
	Cumulative		Postretirement		Instruments,		Other
	Translation		Plans		Unrealized		Comprehensive
(Millions)	Adjustment		Adjustment		Gain (Loss)		Income (Loss)
Balance at December 31, 2017, net of tax:	$	(1,638)	$	(5,276)	$	(112)	$	(7,026)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		(414)		55		133		(226)
Amounts reclassified out		—		606		96		702
Total other comprehensive income (loss), before tax		(414)		661		229		476
Tax effect		(47)		(217)		(53)		(317)
Total other comprehensive income (loss), net of tax		(461)		444		176		159
Impact from purchase of subsidiary shares		1		—		—		1
Balance at December 31, 2018, net of tax:	$	(2,098)	$	(4,832)	$	64	$	(6,866)
Impact of adoption of ASU No. 2018-02		(13)		(817)		(23)		(853)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		102		(1,227)		(26)		(1,151)
Amounts reclassified out		142		459		(70)		531
Total other comprehensive income (loss), before tax		244		(768)		(96)		(620)
Tax effect		(32)		208		24		200
Total other comprehensive income (loss), net of tax		212		(560)		(72)		(420)
Balance at December 31, 2019, net of tax:	$	(1,899)	$	(6,209)	$	(31)	$	(8,139)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		387		(555)		(113)		(281)
Amounts reclassified out		—		676		(71)		605
Total other comprehensive income (loss), before tax		387		121		(184)		324
Tax effect		62		50		42		154
Total other comprehensive income (loss), net of tax		449		171		(142)		478
Balance at December 31, 2020, net of tax:	$	(1,450)	$	(6,038)	$	(173)	$	(7,661)

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. Reclassification adjustments are made to avoid double counting in comprehensive income items that are subsequently recorded as part of net income.

Reclassifications out of Accumulated Other Comprehensive Income Attributable to 3M

	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other Comprehensive Income
Comprehensive Income Components	Year ended December 31,						Location on Income
(Millions)	2020		2019		2018		Statement
Cumulative translation adjustment
Deconsolidation of Venezuelan subsidiary	$	—	$	(142)	$	—	Other (expense) income, net
Total before tax		—		(142)		—
Tax effect		—		—		—	Provision for income taxes
Net of tax	$	—	$	(142)	$	—
Defined benefit pension and postretirement plans adjustments
Gains (losses) associated with defined benefit pension and postretirement plans amortization
Transition asset	$	(2)	$	—	$	—	See Note 13
Prior service benefit		62		69		76	See Note 13
Net actuarial loss		(716)		(478)		(678)	See Note 13
Curtailments/Settlements		(20)		(48)		(4)	See Note 13
Deconsolidation of Venezuelan subsidiary		—		(2)		—	Other (expense) income, net
Total before tax		(676)		(459)		(606)
Tax effect		161		110		145	Provision for income taxes
Net of tax	$	(515)	$	(349)	$	(461)
Cash flow hedging instruments gains (losses)
Foreign currency forward/option contracts	$	80	$	74	$	(95)	Cost of sales
Interest rate contracts		(9)		(4)		(1)	Interest expense
Total before tax		71		70		(96)
Tax effect		(17)		(17)		19	Provision for income taxes
Net of tax	$	54	$	53	$	(77)
Total reclassifications for the period, net of tax	$	(461)	$	(438)	$	(538)