3M (MMM) 8-K 17 May 10 2009 FY Annual Report on Form 10-K Financial data

Consolidated Statement of Incom

Consolidated Statement of Income (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Consolidated Statement of Income
Net sales	$23,123	$25,269	$24,462
Operating expenses
Cost of sales	12,109	13,379	12,735
Selling, general and administrative expenses	4,907	5,245	5,015
Research, development and related expenses	1,293	1,404	1,368
(Gain)/loss from sale of businesses		23	(849)
Total operating expenses	18,309	20,051	18,269
Operating income	4,814	5,218	6,193
Interest expense and income
Interest expense	219	215	210
Interest income	(37)	(105)	(132)
Total interest expense (income)	182	110	78
Income before income taxes	4,632	5,108	6,115
Provision for income taxes	1,388	1,588	1,964
Net income including noncontrolling interest	3,244	3,520	4,151
Less: Net income attributable to noncontrolling interest	51	60	55
Net income attributable to 3M	$3,193	$3,460	$4,096
Weighted average 3M common shares outstanding - basic (in shares)	700.5	699.2	718.3
Earnings per share attributable to 3M common shareholders - basic (in dollars per share)	4.56	4.95	5.7
Weighted average 3M common shares outstanding - diluted (in shares)	706.7	707.2	732
Earnings per share attributable to 3M common shareholders - diluted (in dollars per share)	4.52	4.89	5.6
Cash dividends paid per 3M common share (in dollars per share)	2.04	$2	1.92

Consolidated Balance Sheet

Consolidated Balance Sheet (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008
Current assets
Cash and cash equivalents	$3,040	$1,849
Marketable securities - current	744	373
Accounts receivable - net of allowances of $109 and $85	3,250	3,195
Inventories
Finished goods	1,255	1,505
Work in process	815	851
Raw materials and supplies	569	657
Total inventories	2,639	3,013
Other current assets	1,122	1,168
Total current assets	10,795	9,598
Marketable securities - non-current	825	352
Investments	103	111
Property, plant and equipment	19,440	18,812
Less: Accumulated depreciation	(12,440)	(11,926)
Property, plant and equipment - net	7,000	6,886
Goodwill	5,832	5,753
Intangible assets - net	1,342	1,398
Prepaid pension benefits	78	36
Other assets	1,275	1,659
Total assets	27,250	25,793
Current liabilities
Short-term borrowings and current portion of long-term debt	613	1,552
Accounts payable	1,453	1,301
Accrued payroll	680	644
Accrued income taxes	252	350
Other current liabilities	1,899	1,992
Total current liabilities	4,897	5,839
Long-term debt	5,097	5,166
Pension and postretirement benefits	2,227	2,847
Other liabilities	1,727	1,637
Total liabilities	13,948	15,489
Commitments and contingencies (Note 14)
Common stock, par value $.01 per share. Shares outstanding - 2009: 710,599,119, Shares outstanding - 2008: 693,543,287	9	9
Additional paid-in capital	3,153	3,006
Retained earnings	23,753	22,227
Treasury stock	(10,397)	(11,676)
Unearned compensation		(40)
Accumulated other comprehensive income (loss)	(3,754)	(3,646)
Total 3M Company shareholders' equity	12,764	9,880
Noncontrolling interest	538	424
Total equity	13,302	10,304
Total liabilities and equity	$27,250	$25,793

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Consolidated Balance Sheet
Allowance for doubtful accounts receivable	$109	$85
Common stock, par value (in dollars per share)	0.01	0.01
Common stock, shares outstanding	710,599,119	693,543,287

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders Equity (USD $)
In Millions	Common Stock and Additional Paid-in Capital		Retained Earnings		Treasury Stock	Unearned Compensation	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest		Comprehensive Income	Total
Balance at Dec. 31, 2006	$2,493	[1]	$17,911	[1]	($8,456)	($115)	($1,873)	$278	[1]		$10,238	[1]
Consolidated Statement of Changes in Equity
Net income including noncontrolling interest			4,096					55			4,151
Cumulative translation adjustment							532	16			548
Defined benefit pension and postretirement plans adjustment							614	(4)			610
Debt and equity securities, unrealized gain (loss)							(10)				(10)
Cash flow hedging instruments, unrealized gain (loss)							(10)				(10)
Total comprehensive income										5,289	5,289
Adjustment to initially apply guidance concerning uncertainty in income taxes			(1)								(1)
Dividends paid			(1,380)					(20)			(1,400)
Amortization of unearned compensation						36					36
Stock-based compensation, net of tax impacts	305										305
Reacquired stock					(3,237)						(3,237)
Issuances pursuant to stock option and benefit plans			(331)		1,160						829
Issuances pursuant to acquisitions					13						13
Balance at Dec. 31, 2007	2,798		20,295		(10,520)	(79)	(747)	325			12,072
Consolidated Statement of Changes in Equity
Net income including noncontrolling interest			3,460					60			3,520
Cumulative translation adjustment							(888)	82			(806)
Defined benefit pension and postretirement plans adjustment							(2,072)	(20)			(2,092)
Debt and equity securities, unrealized gain (loss)							(11)				(11)
Cash flow hedging instruments, unrealized gain (loss)							72				72
Total comprehensive income										683	683
Dividends paid			(1,398)					(23)			(1,421)
Amortization of unearned compensation						39					39
Stock-based compensation, net of tax impacts	217										217
Reacquired stock					(1,603)						(1,603)
Issuances pursuant to stock option and benefit plans			(130)		447						317
Balance at Dec. 31, 2008	3,015		22,227		(11,676)	(40)	(3,646)	424			10,304
Consolidated Statement of Changes in Equity
Net income including noncontrolling interest			3,193					51			3,244
Cumulative translation adjustment							286	(13)			273
Defined benefit pension and postretirement plans adjustment							(309)	(5)			(314)
Debt and equity securities, unrealized gain (loss)							10				10
Cash flow hedging instruments, unrealized gain (loss)							(80)				(80)
Total comprehensive income										3,133	3,133
Dividends paid			(1,431)								(1,431)
Transfer to noncontrolling interest	(66)						(15)	81
Amortization of unearned compensation						40					40
Stock-based compensation, net of tax impacts	213										213
Reacquired stock					(17)						(17)
Issuances pursuant to stock option and benefit plans			(236)		1,296						1,060
Balance at Dec. 31, 2009	$3,162		$23,753		($10,397)	$0	($3,754)	$538			$13,302
[1]Balances reflect the impact of retrospective application of new standards related to the accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) and noncontrolling interests in consolidated financial statements, as discussed in Note 1.

Supplemental share information

Supplemental share information
Share data in Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007	Dec. 31, 2007	Dec. 31, 2006
Supplemental treasury stock share information (Millions):
Treasury Stock, Shares, Beginning Balance	250.5	234.9	209.7
Reacquired stock	0.2	21.4	39.7
Issuances pursuant to stock options and benefit plans	-17.3	-5.8	-14.3
Issuances pursuant to acquisitions			-0.2
Treasury Stock, Shares, Ending Balance	233.4	250.5	234.9	234.9	209.7

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income (Loss) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Consolidated Statement of Comprehensive Income (Loss)
Net income including noncontrolling interest	$3,244	$3,520	$4,151
Other comprehensive income, net of tax:
Cumulative translation adjustment	273	(806)	548
Defined benefit pension and postretirement plans adjustment	(314)	(2,092)	610
Debt and equity securities, unrealized gain (loss)	10	(11)	(10)
Cash flow hedging instruments, unrealized gain (loss)	(80)	72	(10)
Total other comprehensive income (loss), net of tax	(111)	(2,837)	1,138
Comprehensive income (loss) including noncontrolling interest	3,133	683	5,289
Comprehensive (income) loss attributable to noncontrolling interest	(33)	(122)	(67)
Comprehensive income (loss) attributable to 3M	$3,100	$561	$5,222

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash Flows from Operating Activities
Net income including noncontrolling interest	$3,244	$3,520	$4,151
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities
Depreciation and amortization	1,157	1,153	1,072
Company pension and postretirement contributions	(792)	(474)	(379)
Company pension and postretirement expense	223	105	255
Stock-based compensation expense	217	202	228
(Gain)/loss from sale of businesses		23	(849)
Deferred income taxes	701	99	(217)
Excess tax benefits from stock-based compensation	(14)	(21)	(74)
Changes in assets and liabilities
Accounts receivable	55	197	(35)
Inventories	453	(127)	(54)
Accounts payable	109	(224)	(4)
Accrued income taxes (current and long-term)	(147)	(143)	183
Product and other insurance receivables and claims	64	153	158
Other - net	(329)	70	(189)
Net cash provided by operating activities	4,941	4,533	4,246
Cash Flows from Investing Activities
Purchases of property, plant and equipment (PP&E)	(903)	(1,471)	(1,422)
Proceeds from sale of PP&E and other assets	74	87	103
Acquisitions, net of cash acquired	(69)	(1,394)	(539)
Purchases of marketable securities and investments	(2,240)	(2,211)	(8,194)
Proceeds from sale of marketable securities and investments	718	1,810	6,902
Proceeds from maturities of marketable securities	683	692	886
Proceeds from sale of businesses	5	88	897
Net cash used in investing activities	(1,732)	(2,399)	(1,367)
Cash Flows from Financing Activities
Change in short-term debt - net	(536)	361	(1,222)
Repayment of debt (maturities greater than 90 days)	(519)	(1,080)	(1,551)
Proceeds from debt (maturities greater than 90 days)	41	1,756	4,024
Purchases of treasury stock	(17)	(1,631)	(3,239)
Reissuances of treasury stock	431	289	796
Dividends paid to stockholders	(1,431)	(1,398)	(1,380)
Distributions to noncontrolling interests		(23)	(20)
Excess tax benefits from stock-based compensation	14	21	74
Other - net	3	(61)
Net cash used in financing activities	(2,014)	(1,766)	(2,518)
Effect of exchange rate changes on cash and cash equivalents	(4)	(415)	88
Net increase /(decrease) in cash and cash equivalents	1,191	(47)	449
Cash and cash equivalents at beginning of year	1,849	1,896	1,447
Cash and cash equivalents at end of year	$3,040	$1,849	$1,896

Significant Accounting Policies

Significant Accounting Policies
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Significant Accounting Policies	NOTE 1. Significant Accounting Policies Consolidation: 3M is a diversified global manufacturer, technology innovator and marketer of a wide variety of products. All significant subsidiaries are consolidated. All significant intercompany transactions are eliminated. As used herein, the term 3M or Company refers to 3M Company and subsidiaries unless the context indicates otherwise. Foreign currency translation: Local currencies generally are considered the functional currencies outside the United States. Assets and liabilities for operations in local-currency environments are translated at year-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Cumulative translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in shareholders equity. The Company has a Venezuelan subsidiary with net sales and operating income representing less than one percent of 3Ms related consolidated financial statement amounts for 2009. Regulations in Venezuela require the purchase and sale of foreign currency to be made at an official rate of exchange that is fixed from time to time by the Venezuelan government. Certain laws in the country, however, provide an exemption for the purchase and sale of certain securities and have resulted in an indirect parallel market through which companies may obtain foreign currency without having to purchase it from Venezuelas Commission for the Administration of Foreign Exchange (CADIVI). The average rate of exchange in the parallel market varies and is less favorable than the official rate. As of December31, 2009, 3M began use of the parallel exchange rate for translation of the financial statements of its Venezuelan subsidiary. This change was based on a number of factors including 3Ms ability to convert currency in the parallel market, the limited release of funds from CADIVI for the payment of dividends by the Venezuelan subsidiary, and conclusion that 3M will or could use the parallel market for repatriation of capital or dividends. This change resulted in a decrease in accumulated other comprehensive income (cumulative translation adjustment) of approximately $55 million with a corresponding decrease in the translated assets and liabilities of 3Ms Venezuelan subsidiary at December31, 2009. Additionally, 3M evaluates the highly inflationary status of Venezuelas economy by considering both the Consumer Price Index (which largely is associated with the cities of Caracas and Maracaibo) and the National Consumer Price Index (developed commencing in 2008 and covering the entire country of Venezuela). Under Accounting Standards Codification (ASC) 830, Foreign Currency Matters, the reporting currency of a foreign entitys parent is assumed to be that entitys functional currency when the economic environment of a foreign entity is highly inflationary. Generally, an economy is considered highly inflationary when its cumulative inflation is approximately 100 percent or more for the three years that precede the beginning of a reporting period. The blended cumulative inflation rate exceeded 100 percent in November2009. Acco

Acquisitions and Divestitures

Acquisitions and Divestitures
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Acquisitions and Divestitures	NOTE 2. Acquisitions and Divestitures Acquisitions: The impact on the consolidated balance sheet of the purchase price allocations related to acquisitions, including adjustments relative to other acquisitions within the allocation period, follows: 2008 Acquisitions (Millions) Asset(Liability) 2009 Total Aearo Holding Corp. Other Acquisitions 2008 Total 2007 Total Accounts receivable $ 31 $ 76 $ 70 $ 146 $ 69 Inventory 10 81 89 170 79 Other current assets 7 8 15 5 Property, plant, and equipment net 15 78 83 161 68 Purchased intangible assets 93 417 377 794 131 Purchased goodwill (25 ) 798 594 1,392 326 Accounts payable and other liabilities, net ofother assets (21 ) (200 ) (104 ) (304 ) (80 ) Interest bearing debt (18 ) (684 ) (125 ) (809 ) (34 ) Deferred tax asset/(liability) (16 ) (50 ) (121 ) (171 ) (12 ) Net assets acquired $ 69 $ 523 $ 871 $ 1,394 $ 552 Supplemental information: Cash paid $ 73 $ 562 $ 897 $ 1,459 $ 546 Less: Cash acquired 4 39 26 65 7 Cash paid, net of cash acquired $ 69 $ 523 $ 871 $ 1,394 $ 539 Non-cash (3M shares at fair value) 13 Net assets acquired $ 69 $ 523 $ 871 $ 1,394 $ 552 Pro forma information related to acquisitions was not included because the impact on the Companys consolidated results of operations was not considered to be material. In-process research and development associated with these business combinations were not material. In addition to business combinations, 3M periodically acquires certain tangible and/or intangible assets and purchases interests in certain enterprises that do not otherwise qualify for accounting as business combinations. These transactions are largely reflected as additional asset purchase and investment activity. 2009 acquisitions: During 2009, 3M completed four business combinations. The purchase price paid for these business combinations (net of cash acquired) and certain acquisition costs and contingent consideration paid for pre-2009 business combinations during 2009 aggregated to $69 million. (1)In January2009, 3M (Safety, Security and Protection Services Business) purchased 100 percent of the outstanding shares of Alltech Solutions, a provider of water pipe rehabilitation services based in Moncton, New Brunswick, Canada. (2)In February2009, 3M (Industrial and Transportation Business) purchased the assets of Compac Corp.s pressure sensitive adhesive tape business, a global leader in providing custom solutions in coating, laminating and converting flexible substrates headquartered in Hackettstown, N.J. (3)In April2009, 3M (Industrial and Transportation Business) purchased 100 percent of the outstanding shares of Meguiars International, UK, a distributor of Meguiars Inc. products ba

Goodwill and Intangible Assets

Goodwill and Intangible Assets
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Goodwill and Intangible Assets	NOTE 3. Goodwill and Intangible Assets Purchased goodwill from the four acquisitions that closed in 2009 totaled $15 million, $9 million of which is deductible for tax purposes. Purchased goodwill from acquisitions totaled $1.392 billion in 2008, $34 million of which is deductible for tax purposes. The acquisition activity in the following table also includes the impacts of adjustments to the preliminary allocation of purchase price and certain acquisition costs and contingent consideration for pre-2009 acquisitions, which reduced goodwill by $40 million in 2009. The amounts in the Translation and other column in the following table primarily relate to changes in foreign currency exchange rates, except for the $77 million decrease in goodwill related to the second-quarter 2008 sale of 3Ms HighJump Software business (included in the Safety, Security and Protection Services business). The goodwill balance by business segment follows: Goodwill (Millions) Dec.31, 2007 Balance 2008 acquisition activity 2008 translation and other Dec.31, 2008 Balance 2009 acquisition activity 2009 translation and other Dec.31, 2009 Balance Industrial and Transportation $ 1,546 $ 215 $ (24 ) $ 1,737 $ (4 ) $ 50 $ 1,783 Health Care 839 170 (21 ) 988 5 14 1,007 Consumer and Office 94 34 27 155 11 (11 ) 155 Safety, Security and Protection Services 589 792 (224 ) 1,157 6 57 1,220 Display and Graphics 894 140 8 1,042 (44 ) (8 ) 990 Electro and Communications 627 41 6 674 1 2 677 Total Company $ 4,589 $ 1,392 $ (228 ) $ 5,753 $ (25 ) $ 104 $ 5,832 Accounting standards require that goodwill be tested for impairment annually and between annual tests in certain circumstances such as a change in reporting units or the testing of recoverability of a significant asset group within a reporting unit. At 3M, reporting units generally correspond to a division. As discussed in Note 17 to the Consolidated Financial Statements, effective in the first quarter of 2010, 3M made certain product moves between its business segments, with the resulting impact reflected in the goodwill balances by business segment above for all periods presented. For those changes that resulted in reporting unit changes, the Company applied the relative fair value method to determine the impact to reporting units. During the first quarter of 2010, the Company completed its assessment of any potential goodwill impairment for reporting units impacted by this new structure and determined that no impairment existed. As discussed in Note 13, in June2009, 3M tested the long lived assets grouping associated with the U.K. passport production activity of 3Ms Security Systems Division for recoverability. This circumstance required the Company to also test goodwill for impairment at the reporting unit (Security Systems Division) level. 3M completed its assessment of potential goodwill impairment fo

Restructuring Actions and Exit

Restructuring Actions and Exit Activities
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Restructuring Actions and Exit Activities	NOTE 4. Restructuring Actions and Exit Activities Restructuring actions and exit activities generally include significant actions involving employee-related severance charges, contract termination costs, and impairment of assets associated with such actions. Employee-related severance charges are largely based upon distributed employment policies and substantive severance plans. These charges are reflected in the quarter in which management approves the associated actions, the actions are probable, and the amounts are estimable. Severance amounts for which affected employees were required to render service in order to receive benefits at their termination dates were measured at the date such benefits were communicated to the applicable employees and recognized as expense over the employees remaining service periods. Contract termination and other charges primarily reflect costs to terminate a contract before the end of its term (measured at fair value at the time the Company provided notice to the counterparty) or costs that will continue to be incurred under the contract for its remaining term without economic benefit to the Company. As discussed in accounting policies in Note 1, asset impairment charges related to intangible assets and property, plant and equipment reflect the excess of the assets carrying values over their fair values. The following provides information, respectively, concerning the Companys 2009/2008 restructuring actions, its 2007/2006 restructuring actions, and its exit activities during 2008 and 2007. 2009 and 2008 Restructuring Actions: During the fourth quarter of 2008 and the first nine months of 2009, management approved and committed to undertake certain restructuring actions. Due to the rapid decline in global business activity in the fourth quarter of 2008 and into the first three quarters of 2009, 3M aggressively reduced its cost structure and rationalized several facilities, including manufacturing, technical and office facilities. These actions included all geographies, with particular attention in the developed areas of the world that have and are experiencing large declines in business activity, and included the following: During the fourth quarter of 2008, 3M announced the elimination of more than 2,400 positions. Of these employment reductions, about 31 percent were in the United States, 29 percent in Europe, 24 percent in Latin America and Canada, and 16 percent in the Asia Pacific area. These restructuring actions resulted in a fourth-quarter 2008 pre-tax charge of $229 million, with $186 million for employee-related items/benefits and other, and $43 million related to fixed asset impairments. The preceding charges were recorded in cost of sales ($84 million), selling, general and administrative expenses ($135 million), and research, development and related expenses ($10 million). Cash payments in 2008 related to this restructuring were not material. During the first quarter of 2009, 3M announced the elimination of approximately 1,200 positions. Of these employment reductions, about 43 percent were in the United States, 36 percent in Latin America, 16 percent in Europe and

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Supplemental Balance Sheet Information	NOTE 5. Supplemental Balance Sheet Information (Millions) 2009 2008 Other current assets Prepaid expenses and other $ 657 $ 552 Deferred income taxes 330 271 Derivative assets-current 25 215 Product and other insurance receivables 110 130 Total other current assets $ 1,122 $ 1,168 Investments Equity-method $ 73 $ 73 Available-for-sale 11 5 Real estate and other 19 33 Total investments $ 103 $ 111 Property, plant and equipment at cost Land $ 291 $ 281 Buildings and leasehold improvements 6,069 5,787 Machinery and equipment 12,296 11,742 Construction in progress 627 903 Capital leases 157 99 Gross property, plant and equipment 19,440 18,812 Accumulated depreciation* (12,440 ) (11,926 ) Property, plant and equipment net $ 7,000 $ 6,886 * Includes accumulated depreciation for capital leases of $50 million for 2009 and $40 million for 2008. Other assets Deferred income taxes $ 625 $ 1,053 Product and other insurance receivables 171 206 Cash surrender value of life insurance policies 202 175 Other 277 225 Total other assets $ 1,275 $ 1,659 Other current liabilities Accrued trade payables $ 464 $ 428 Deferred income 316 322 Derivative liabilities-current 94 203 Restructuring actions 76 187 Employee benefits and withholdings 150 157 Product and other claims 123 148 Property and other taxes 198 141 Pension and postretirement benefits 41 38 Deferred income taxes 27 19 Other 410 349 Total other current liabilities $ 1,899 $ 1,992 Accounts payable (included as a separate line item in the Consolidated Balance Sheet) includes drafts payable on demand of $83 million and $98 million as of December31, 2009, and 2008, respectively. Other liabilities Long term taxes payable $ 611 $ 541 Employee benefits 491 537 Product and other claims 330 296 Capital lease obligations 107 58 Deferred income 23 22 Deferred income taxes 91 21 Other 74 162 Total other liabilities $ 1,727 $ 1,637

Supplemental Equity and Compreh

Supplemental Equity and Comprehensive Income Information
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Supplemental Equity and Comprehensive Income Information	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 December31, 2009, 250,489,769 shares at December31, 2008, and 234,877,025 shares at December31, 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 - netoftax (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

Supplemental Cash Flow Informat

Supplemental Cash Flow Information
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Supplemental Cash Flow Information	NOTE 7. Supplemental Cash Flow Information (Millions) 2009 2008 2007 Cash income tax payments $ 834 $ 1,778 $ 1,999 Cash interest payments 236 196 162 Capitalized interest 27 28 25 Individual amounts in the Consolidated Statement of Cash Flows exclude the impacts of acquisitions, divestitures and exchange rate impacts, which are presented separately. Other net in the Consolidated Statement of Cash Flows within operating activities in 2009, 2008 and 2007 includes changes in liabilities related to 3Ms restructuring actions (Note 4). Transactions related to investing and financing activities with significant non-cash components are as follows: During 2009, 3M recorded a capital lease asset and obligation of approximately $50 million related to an IT investment with an amortization period of seven years and contributed $600 million to its U.S. defined benefit pension plan in shares of the Companys common stock. In 2007, 3M purchased certain assets of Diamond Productions,Inc. for approximately 150 thousand shares of 3M common stock, which has a market value of approximately $13 million at the acquisitions measurement date. Liabilities assumed from acquisitions are provided in the tables in Note 2.

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Income Taxes	NOTE 8. Income Taxes Income Before Income Taxes (Millions) 2009 2008 2007 United States $ 2,338 $ 2,251 $ 2,820 International 2,294 2,857 3,295 Total $ 4,632 $ 5,108 $ 6,115 Provision for Income Taxes (Millions) 2009 2008 2007 Currently payable Federal $ 88 $ 882 $ 1,344 State 13 14 58 International 586 820 779 Deferred Federal 489 (168 ) (333 ) State 56 34 1 International 156 6 115 Total $ 1,388 $ 1,588 $ 1,964 Components of Deferred Tax Assets and Liabilities (Millions) 2009 2008 Accruals not currently deductible Employee benefit costs $ 134 $ 230 Product and other claims 174 198 Pension costs 692 914 Stock-based compensation 473 425 Product and other insurance receivables (85 ) (100 ) Accelerated depreciation (586 ) (463 ) Other 35 80 Net deferred tax asset $ 837 $ 1,284 Reconciliation of Effective Income Tax Rate 2009 2008 2007 Statutory U.S. tax rate 35.0 % 35.0 % 35.0 % State income taxes net of federal benefit 1.1 0.9 0.9 International income taxes net (4.9 ) (3.9 ) (2.8 ) U.S. business credits (0.4 ) (0.4 ) (0.3 ) Reserves for tax contingencies/return to provision 0.4 0.3 0.4 Restructuring actions 0.4 0.1 Medicare Modernization Act (0.2 ) (0.2 ) (0.4 ) Domestic Manufacturers deduction (0.7 ) (0.8 ) (0.8 ) All other net (0.3 ) (0.2 ) Effective worldwide tax rate 30.0 % 31.1 % 32.1 % The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2002. The Internal Revenue Service (IRS) completed its examination of the Companys U.S. federal income tax returns for the years 2002 through 2004 in the first quarter of 2008. The outcome of the 2002 through 2004 audit cycle impacted the 2001 tax year, which was settled in the second quarter of 2008. The IRS completed its field examination of the Companys U.S. federal income tax returns for the years 2005 through 2007 in the fourth quarter of 2009. The Company has protested certain IRS positions within these tax years and is expected to enter the administrative appeals process with the IRS during 2010. Currently, the Company is under examination by the IRS for its U.S. federal income tax returns for the years 2008 and 2009. It is anticipated that the IRS will complete its examination of the Company for 2008 by the end of the first quarter of 2010 and for 2009 by the end of the first quarter of 2011. As of December31, 2009, the IRS has not proposed any significant adjustments to the Companys tax positions for which the

Marketable Securities

Marketable Securities
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Marketable Securities	NOTE 9. Marketable Securities The Company invests in asset-backed securities, agency securities, corporate medium-term note securities and other securities. The following is a summary of amounts recorded on the Consolidated Balance Sheet for marketable securities (current and non-current). (Millions) Dec.31, 2009 Dec.31, 2008 Agency securities $ 326 $ 180 Corporate securities 154 145 Asset-backed securities: Automobile loans related 198 24 Credit cards related 9 Other 49 11 Asset-backed securities total 256 35 Other securities 8 13 Current marketable securities $ 744 $ 373 Agency securities $ 165 $ 200 Corporate securities 112 62 Treasury securities 94 12 Asset-backed securities: Automobile loans related 317 25 Credit cards related 98 40 Other 34 11 Asset-backed securities total 449 76 Auction rate and other securities 5 2 Non-current marketable securities $ 825 $ 352 Total marketable securities $ 1,569 $ 725 Classification of marketable securities as current or non-current is dependent upon managements intended holding period, the securitys maturity date and liquidity considerations based on market conditions. If management intends to hold the securities for longer than one year as of the balance sheet date, they are classified as non-current. At December31, 2009, gross unrealized losses totaled approximately $12 million (pre-tax), while gross unrealized gains totaled approximately $3 million (pre-tax). At December31, 2008, gross unrealized losses totaled approximately $30 million (pre-tax), while gross unrealized gains were not material. Gross realized gains on sales or maturities of marketable securities were not material in 2009, $5 million in 2008 and $7 million in 2007. Gross realized losses on sales or maturities of marketable securities were $3 million for 2009 and were not material for 2008 and 2007. Cost of securities sold use the first in, first out (FIFO) method. Since these marketable securities are classified as available-for-sale securities, changes in fair value will flow through other comprehensive income, with amounts reclassified out of other comprehensive income into earnings upon sale or other-than-temporary impairment. 3M reviews impairments associated with the above in accordance with the measurement guidance provided by ASC 320, Investments-Debt and Equity Securities, when determining the classification of the impairment as temporary or other-than-temporary. In addition, as discussed in Note 1, beginning in April2009, the Company considers the new accounting standard with respect to the determination of other-than-temporary impairments associated with investments in debt securities. A temporary impairment charge results in an unrealized loss being recorded in the other comprehensive income component of shareholders equity. Such an unrealized loss does not reduce net income attributable to 3M for the applicable accounting period because the loss is not vi

Long-Term Debt and Short-Term B

Long-Term Debt and Short-Term Borrowings
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Long-Term Debt and Short-Term Borrowings	NOTE 10. Long-Term Debt and Short-Term Borrowings Long-term debt and short-term borrowings as of December31 consisted of the following (with interest rates as of December31, 2009): Long-Term Debt (Millions) Description / Principal Amount Currency/ Fixed vs. Floating* Effective Interest Rate* Final Maturity Date 2009 2008 Eurobond (625 million Euros) Euro Fixed 4.98 % 2014 $ 898 $ 882 Medium-term note ($850 million) USD Fixed 4.42 % 2013 849 849 Medium-term note ($800 million) USDFloating 3.22 % 2011 801 799 30-year bond ($750 million) USD Fixed 5.73 % 2037 747 747 Eurobond (400 million Euros) Euro Floating 1.33 % 2014 623 603 Medium-term note ($500 million) USD Fixed 4.67 % 2012 500 500 Medium-term note ($400 million) USD Floating 2009 411 30-year debenture ($330 million) USD Fixed 6.01 % 2028 350 351 Dealer Remarketable Securities ($350 million) USD Fixed 5.61 % 2010 350 350 Convertible notes ($252 million) USD Fixed 0.50 % 2032 225 224 Floating rate note ($100 million) USD Floating 0.00 % 2041 100 100 Floating rate note ($60 million) USD Floating 0.00 % 2044 60 62 ESOP debt guarantee ($44 million) USD Fixed 2009 44 Other borrowings Various 1.37 % 2010-2040 116 136 Total long-term debt $ 5,619 $ 6,058 Less: current portion of long-term debt 522 892 Long-term debt (excluding current portion) $ 5,097 $ 5,166 Short-Term Borrowings and Current Portion of Long-Term Debt (Millions) Effective Interest Rate* 2009 2008 Current portion of long-term debt 4.00 % $ 522 $ 892 U.S. dollar commercial paper 575 Other borrowings 7.46 % 91 85 Total short-term borrowings and current portion of long-term debt $ 613 $ 1,552 Weighted-Average Effective Interest Rate* Total Excluding ESOP Debt At December31 2009 2008 2009 2008 Short-term 4.51 % 3.59 % N/A 3.53 % Long-term 4.04 % 4.72 % N/A 4.72 % * Debt tables reflect the effects of interest rate swaps at December31; weighted-average effective interest rate table reflects the combined effects of interest rate and currency swaps at December31. The ESOP debt matured in 2009. Maturities of long-term debt for the five years subsequent to December31, 2009 are as follows (in millions): 2010 2011 2012 2013 2014 After 2014 Total $ 522 $ 923 $ 724 $ 849 $ 1,521 $ 1,080 $ 5,619 The Companys $350 million of Dealer Remarketable Securities (classified as current portion of long-term debt) were remarketed for one year in December2009. Long-term debt payments due in 2010 include these $350 million of Dealer Remarketable Securities, which mature i

Pension and Postretirement Bene

Pension and Postretirement Benefit Plans
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Pension and Postretirement Benefit Plans	NOTE 11. Pension and Postretirement Benefit Plans 3M has company-sponsored retirement plans covering substantially all U.S. employees and many employees outside the United States. In total, 3M has over 60 plans in 24 countries. Pension benefits associated with these plans generally are based on each participants years of service, compensation, and age at retirement or termination. In addition to providing pension benefits, the Company provides certain postretirement health care and life insurance benefits for substantially all of its U.S. employees who reach retirement age while employed by the Company. Most international employees and retirees are covered by government health care programs. The cost of company-provided postretirement health care plans for international employees is not material and is combined with U.S. amounts in the tables that follow. The Companys pension funding policy is to deposit with independent trustees amounts allowable by law. Trust funds and deposits with insurance companies are maintained to provide pension benefits to plan participants and their beneficiaries. There are no plan assets in the non-qualified plan due to its nature. For its U.S. postretirement health care and life insurance benefit plans, the Company has set aside amounts at least equal to annual benefit payments with an independent trustee. In August2006, the Pension Protection Act (PPA) was signed into law in the U.S. The PPA increases the funding target for defined benefit pension plans to 100% of the target liability. The PPA transition rulesrequire a funding liability target of 92% in 2008, reaching 100% by 2011. 3Ms U.S. qualified defined benefit plans are funded at the applicable transition funding liability target for 2009. During the first quarter of 2008, the Company made modifications to its U.S. postretirement benefits plan. The changes were effective beginning January1, 2009, and allow current retired employees and employees who retire before January1, 2013 the option to continue on the existing postretirement plans or elect the new plans. Current employees who retire after December31, 2012, will receive a savings account benefits-based plan. As a result of the modification to the U.S. postretirement benefits plan, the Company remeasured its U.S. plans assets and accumulated postretirement benefit obligation (APBO) as of March31, 2008. The impact of the plan modifications reduced the APBO by $148 million, which was partially offset by asset values being $97 million lower than on December31, 2007. Therefore, the accrued benefit cost liability recorded on the balance sheet as of March31, 2008, was reduced by $51 million. The remeasurement reduced the 2008 expense by $15 million. In 2009, the Company made further modifications to its U.S. postretirement benefit plan. The changes are effective beginning January1, 2010, and limit the amount of medical inflation absorbed by the Company to three percent a year. As a result, as of the December31, 2009 measurement date, the APBO was reduced by $168 million. During the second quarter of 2009, the Company offered a voluntary early retirement incentive program to certain eli

Derivatives

Derivatives
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Derivatives	NOTE 12. Derivatives The Company uses interest rate swaps, currency swaps, commodity price swaps, and forward and option contracts to manage risks generally associated with foreign exchange rate, interest rate and commodity price fluctuations. The information that follows explains the various types of derivatives and financial instruments used by 3M, how and why 3M uses such instruments, how such instruments are accounted for, and how such instruments impact 3Ms financial position and performance. Additional information with respect to the impacts on other comprehensive income of nonderivative hedging and derivative instruments is included in Note 6. Additional information with respect to the fair value of derivative instruments is included in Note 13. References to information regarding derivatives and/or hedging instruments associated with the Companys long-term debt are also made in Note 10. Types of Derivatives/Hedging Instruments and Inclusion in Income/Other Comprehensive Income Cash Flow Hedges: For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. Cash Flow Hedging - Foreign Currency Forward and Option Contracts: The Company enters into foreign exchange forward and option contracts to hedge against the effect of exchange rate fluctuations on cash flows denominated in foreign currencies and certain intercompany financing transactions. These transactions are designated as cash flow hedges. The settlement or extension of these derivatives will result in reclassifications (from accumulated other comprehensive income) to earnings in the period during which the hedged transactions affect earnings. Generally, 3M dedesignates these cash flow hedge relationships in advance of the occurrence of the forecasted transaction. The portion of gains or losses on the derivative instrument previously accumulated in other comprehensive income for dedesignated hedges remains in accumulated other comprehensive income until the forecasted transaction occurs. Changes in the value of derivative instruments after dedesignation are recorded in earnings and are included in the Derivatives Not Designated as Hedging Instruments section below. Hedge ineffectiveness and the amount excluded from effectiveness testing recognized in income on cash flow hedges were not material for 2009 and 2008. The maximum length of time over which 3M hedges its exposure to the variability in future cash flows for a majority of the forecasted transactions is 12 months and, accordingly, at December31, 2009, the majority of the Companys open foreign exchange forward and option contracts had maturities of one year or less. The dollar equivalent gross notional amount of the Companys foreign exchange forward and option contracts designated as cash fl

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Fair Value Measurements	NOTE 13. Fair Value Measurements As discussed in Note 1, 3M adopted the new fair value measurements standard, codified in ASC 820, prospectively effective January1, 2008, with respect to fair value measurements of (a)nonfinancial assets and liabilities that are recognized or disclosed at fair value in the Companys financial statements on a recurring basis (at least annually) and (b)all financial assets and liabilities. 3M adopted the remaining aspects of the fair value measurement standard relative to nonfinancial assets and liabilities that are measured at fair value, but are recognized and disclosed at fair value on a nonrecurring basis, prospectively effective January1, 2009. Under the new standard, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The standard also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Companys assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis: As described in Note 1, at 3M, effective January1, 2008, fair value measurement under ASC 820 principally applied to financial asset and liabilities such as available-for-sale marketable securities, available-for-sale investments (included as part of investments in the Consolidated Balance Sheet) and certain derivative instruments. Derivatives include cash flow hedges, interest rate swaps and most net investment hedges. These items were previously and will continue to be marked-to-market at each reporting period; however, the definition of fair value used for these mark-to-markets is now applied using ASC 820. The information in the following paragraphs and tables primarily addresses matters relative to these financial assets and liabilities. The information incorporates guidance relating to determining the fair value of a financial asset when the market for that asset is not activ

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Commitments and Contingencies	NOTE 14. Commitments and Contingencies Capital and Operating Leases: Rental expense under operating leases was $244 million in 2009, $247 million in 2008 and $226 million in 2007. It is 3Ms practice to secure renewal rights for leases, thereby giving 3M the right, but not the obligation, to maintain a presence in a leased facility. 3M has two primary capital leases. First, 3M has a capital lease, which became effective in April2003, that involves a building in the United Kingdom (with a lease term of 22 years). During the second quarter of 2003, 3M recorded a capital lease asset and obligation of approximately 33.5 million United Kingdom pounds (approximately $53 million at December31, 2009 exchange rates). Second, during the fourth quarter of 2009, 3M recorded a capital lease asset and obligation of approximately $50 million related to an IT investment with an amortization period of seven years. Minimum lease payments under capital and operating leases with non-cancelable terms in excess of one year as of December31, 2009, were as follows: (Millions) CapitalLeases OperatingLeases 2010 $ 16 $ 125 2011 18 95 2012 18 76 2013 18 38 2014 18 23 After 2014 40 91 Total $ 128 $ 448 Less: Amounts representing interest 8 Present value of future minimum lease payments 120 Less: Current obligations under capital leases 13 Long-term obligations under capital leases $ 107 Warranties/Guarantees: 3Ms accrued product warranty liabilities, recorded on the Consolidated Balance Sheet as part of current and long-term liabilities, are estimated at approximately $25 million as of December31, 2009 and 2008. 3M does not consider this amount to be material. The fair value of 3M guarantees of loans with third parties and other guarantee arrangements, except for the guarantee discussed below, are not material. 3M Security Printing and Systems Limited, a subsidiary of 3M, has provided a guarantee through 3M United Kingdom Holdings PLC (another subsidiary of 3M) to The Identity and Passport Service (IPS). 3M has guaranteed default on performance and payment of liabilities under a contract with IPS. The amount guaranteed is 45 million Great British Pounds (approximately $71 million U.S. dollars at December31, 2009). The contract expires on October4, 2010. 3M does not expect to pay out any funds under this guarantee. Related Party Activity: 3M does not have any related party activity that is not in the ordinary course of business. Legal Proceedings: The Company and some of its subsidiaries are involved in numerous claims and lawsuits, principally in the United States, and regulatory proceedings worldwide. These include various products liability (involving products that the Company now or formerly manufactured and sold), intellectual property, and commercial claims and lawsuits, including those brought under the antitrust laws, and environmental proceedings. The following sections first describe the significant legal proceedings in which the Company is involved, and then describe the liabilities and associated in

Employee Savings and Stock Owne

Employee Savings and Stock Ownership Plans
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Employee Savings and Stock Ownership Plans	NOTE 15. Employee Savings and Stock Ownership Plans The Company sponsors employee savings plans under Section401(k)of the Internal Revenue Code. These plans are offered to substantially all regular U.S. employees. During 2008 the Board of Directors approved various changes to the employee savings plans. For employees hired prior to January1, 2009, employee 401(k)contributions of up to 6% of eligible compensation are matched in Company stock at rates of 60% or 75%, depending on the plan the employee participated in. Employees hired on or after January1, 2009 receive a cash match of 100% for employee 401(k)contributions of up to 6% of eligible compensation and also receive an employer retirement income account cash contribution of 3% of the participants total eligible compensation. All employee contributions are invested in a number of investment funds pursuant to their elections. Vested employees may diversify their 3M shares into other investment options. Effective January1, 2010, the matching contributions for all participants will be made in cash. The Company maintained an Employee Stock Ownership Plan (ESOP) that was established in 1989 as a cost-effective way of funding the majority of the Companys contributions under 401(k)employee savings plans. Total ESOP shares were considered to be shares outstanding for earnings per share calculations. The ESOP debt obligation matured in 2009 (Note 10). Dividends on shares held by the ESOP were paid to the ESOP trust and, together with Company contributions, were used by the ESOP to repay principal and interest on the outstanding ESOP debt. The tax benefit related to dividends paid on unallocated shares was charged directly to equity and totaled approximately $1 million in 2009, $2 million in 2008, and $3million in 2007. Over the life of the ESOP debt, shares were released for allocation to participants based on the ratio of the current years debt service to the remaining debt service prior to the current payment. Until 2009, the ESOP was the primary funding source for the Companys employee savings plans. As permitted by accounting standards relating to employers accounting for employee stock ownership plans, the debt of the ESOP was recorded as debt, and shares pledged as collateral were reported as unearned compensation in the Consolidated Balance Sheet and Consolidated Statement of Changes in Equity. Unearned compensation was reduced symmetrically as the ESOP made principal payments on the debt. Expenses related to the ESOP included total debt service on the notes, less dividends. The Company contributed treasury shares (accounted for at fair value) and cash (in 2009) to employee savings plans to cover obligations not funded by the ESOP (reported as an employee benefit expense). Employee Savings and Stock Ownership Plans (Millions) 2009 2008 2007 Dividends on shares held by the ESOP $ 31 $ 33 $ 37 Company contributions to the ESOP 16 14 10 Interest incurred on ESOP notes 1 3 5 Amounts reported as an employee benefit expense: Expenses related to ESOP debt service 10 9 5 Expenses related to

Stock-Based Compensation

Stock-Based Compensation
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Stock-Based Compensation	NOTE 16. Stock-Based Compensation In May2008, shareholders approved 35 million shares for issuance under the 3M 2008 Long-Term Incentive Plan, which replaced and succeeded the 2005 Management Stock Ownership Program (MSOP), the 3M Performance Unit Plan, and the 1992 Directors Stock Ownership Program. Shares under this plan may be issued in the form of Incentive Stock Options, Nonqualified Stock Options, Progressive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Other Stock Awards, and Performance Units and Performance Shares. Awards denominated in shares of common stock other than options and Stock Appreciation Rights, per the 2008 Plan, will be counted against the 35 million share limit as 3.38 shares for every one share covered by such award. The remaining total shares available for grant under the 3M 2008 Long Term Incentive Plan are 15,507,162 as of December31, 2009. In 2009, the Company changed the timing of its annual stock option and restricted stock unit grant dates from Mayto February, in order to provide a stronger and more immediate link between the performance of individuals during the preceding year and the size of their annual stock option grants. In 2008 and prior, the Company issued options to eligible employees annually in Mayusing the closing stock price on the grant date, which was the date of the Annual Stockholders Meeting. Accounting rulesrequire recognition of expense under a non-substantive vesting period approach, requiring compensation expense recognition when an employee is eligible to retire. 3M employees in the United States are eligible to retire at age 55 and after having completed five years of service. Approximately 25 percent of the stock-based compensation award expense dollars are for this retiree-eligible population. Therefore, in 2009 the retiree-eligible impact shifted stock-based compensation expense to the first quarter, whereas in 2008 and prior this impact was recognized in the second quarter (because of the Maygrant date). In addition to these annual grants, the Company makes other minor grants of stock options, restricted stock units and other stock-based grants. The Company issues cash settled Restricted Stock Units and Stock Appreciation Rights in certain countries. These grants do not result in the issuance of Common Stock and are considered immaterial by the Company. There were approximately 14,008 participants with outstanding options, restricted stock, or restricted stock units at December31, 2009. Effective with the May2005 MSOP annual grant, the Company changed its vesting period from one to three years with the expiration date remaining at 10 years from date of grant. Beginning in 2007, the Company reduced the number of traditional stock options granted under the MSOP plan by reducing the number of employees eligible to receive annual grants and by shifting a portion of the annual grant away from traditional stock options primarily to restricted stock units. However, associated with the reduction in the number of eligible employees, the Company provided a one-time buyout grant of restricted stock units to the impacted employees, which re

Business Segments

Business Segments
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Business Segments	NOTE 17. Business Segments Effective in the first quarter of 2010, 3M made certain product moves between its business segments in its continuing effort to drive growth by aligning businesses around markets and customers. There were no changes impacting business segments related to product moves for the Health Care segment, Consumer and Office segment, Display and Graphics segment, or Electro and Communications segment. The product moves between business segments are summarized as follows: Certain acoustic systems products in the Occupational Health and Environmental Safety Division (part of the Safety, Security and Protection Services business segment) were transferred to the Automotive Division within the Industrial and Transportation business segment. In addition, thermal acoustics systems products which were included in the Occupational Health and Environmental Safety Division as a result of 3Ms April2008 acquisition of Aearo Holding Corp. were transferred to the Aerospace and Aircraft Maintenance Department within the Industrial and Transportation business segment. These product moves establish an acoustic center of excellence within the Industrial and Transportation business segment. The preceding product moves resulted in an increase in net sales for total year 2009 of $116 million for Industrial and Transportation, which was offset by a corresponding decrease in net sales for Safety, Security and Protection Services. 3Ms businesses are organized, managed and internally grouped into segments based on differences in products, technologies and services. 3M continues to manage its operations in six operating business segments: Industrial and Transportation; Health Care; Consumer and Office; Safety, Security and Protection Services; Display and Graphics; and Electro and Communications. 3Ms six business segments bring together common or related 3M technologies, enhancing the development of innovative products and services and providing for efficient sharing of business resources. These segments have worldwide responsibility for virtually all 3M product lines. 3M is not dependent on any single product/service or market. Certain small businesses and lab-sponsored products, as well as various corporate assets and expenses, are not attributed to the business segments. Transactions among reportable segments are recorded at cost. The financial information presented herein reflects the impact of all of the preceding segment structure changes for all periods presented. Business Segment Products Business Segment Major Products Industrial and Transportation Tapes, coated and nonwoven abrasives, adhesives, specialty materials, filtration products, closure systems for personal hygiene products, acoustic systems products, automotive components, abrasion-resistant films, structural adhesives and paint finishing and detailing products, energy control products Health Care Medical and surgical supplies, skin health and infection prevention products, pharmaceuticals (sold in December2006 and January2007), drug delivery systems, dental and orthodontic products, health information systems and food safety products Con

Geographic Areas

Geographic Areas
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Geographic Areas	NOTE 18. Geographic Areas Geographic area information is used by the Company as a secondary performance measure to manage its businesses. Export sales and certain income and expense items are generally reported within the geographic area where the final sales to 3M customers are made. Net Sales Operating Income Property, Plant and Equipment - net (Millions) 2009 2008 2007 2009 2008 2007 2009 2008 United States $ 8,509 $ 9,179 $ 8,987 $ 1,640 $ 1,578 $ 1,894 $ 3,809 $ 3,901 Asia Pacific 6,120 6,423 6,601 1,528 1,662 2,062 1,366 1,304 Europe, Middle East and Africa 5,972 6,941 6,503 1,003 1,294 1,626 1,318 1,263 Latin America and Canada 2,516 2,723 2,365 631 693 616 507 418 Other Unallocated 6 3 6 12 (9 ) (5 ) Total Company $ 23,123 $ 25,269 $ 24,462 $ 4,814 $ 5,218 $ 6,193 $ 7,000 $ 6,886 Restructuring and exit activities significantly impacted results by geographic area in 2009, 2008 and 2007. In 2007, results were also significantly impacted by the sale of businesses. Refer to Note 2 and Note 4 for discussion of these items. Asia Pacific includes Japan net sales to customers of $1.979 billion in 2009, $2.180 billion in 2008 and $2.063 billion in 2007. Asia Pacific includes Japan net property, plant and equipment of $364 million in 2009 and $420 million in 2008.

Quarterly Data

Quarterly Data (Unaudited)
	12 Months Ended Dec. 31, 2009
Notes to Consolidated Financial Statements
Quarterly Data (Unaudited)	NOTE 19. Quarterly Data (Unaudited) (Millions, except per-share amounts) 2009 First Quarter Second Quarter Third Quarter Fourth Quarter Year 2009 Net sales $ 5,089 $ 5,719 $ 6,193 $ 6,122 $ 23,123 Cost of sales 2,772 2,977 3,171 3,189 12,109 Net income attributable to 3M 518 783 957 935 3,193 Earnings per share attributable to 3M commonshareholders basic 0.75 1.12 1.36 1.32 4.56 Earnings per share attributable to 3M commonshareholders diluted 0.74 1.12 1.35 1.30 4.52 (Millions, except per-share amounts)2008 First Quarter Second Quarter Third Quarter Fourth Quarter Year 2008 Net sales $ 6,463 $ 6,739 $ 6,558 $ 5,509 $ 25,269 Cost of sales 3,336 3,510 3,432 3,101 13,379 Net income attributable to 3M 988 945 991 536 3,460 Earnings per share attributable to 3M commonshareholders basic 1.40 1.35 1.43 0.77 4.95 Earnings per share attributable to 3M commonshareholders diluted 1.38 1.33 1.41 0.77 4.89 Gross profit is calculated as net sales minus cost of sales. In 2009, restructuring charges, partially offset by a gain on sale of real estate, decreased net income attributable to 3M by $119 million, or $0.17 per diluted share, with $45 million ($0.07 per diluted share) in the first quarter, $60 million ($0.08 per diluted share) in the second quarter and $14 million ($0.02 per diluted share) in the third quarter. 2008 included restructuring actions, exit activities and a loss on sale of businesses, which were partially offset by a gain on sale of real estate. In 2008, these restructuring and other items decreased net income attributable to 3M by $194 million, or $0.28 per diluted share, with $140 million, or $0.20 per diluted share in the fourth quarter of 2008.

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Document and Entity Information
Document Type	8-K
Document Period End Date	2009-12-31
Amendment Flag	false
Entity Registrant Name	3M CO
Entity Central Index Key	0000066740
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding		711,733,377
Entity Public Float			$42
Document Fiscal Year Focus	2,009
Document Fiscal Period Focus	FY