| NOTE 12. Stock-Based Compensation | |||||||||||||
| Three months ended | Six months ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| (Millions, except per share amounts) | 2009 | 2008 | 2009 | 2008 | |||||||||
| Cost of sales | $ | 9 | $ | 17 | $ | 24 | $ | 26 | |||||
| Selling, general and administrative expenses | 33 | 47 | 86 | 73 | |||||||||
| Research, development and related expenses | 7 | 15 | 22 | 23 | |||||||||
| Operating Income (Loss) | $ | (49 | ) | $ | (79 | ) | $ | (132 | ) | $ | (122 | ) | |
| Income tax benefits | $ | 15 | $ | 34 | $ | 43 | $ | 51 | |||||
| Net Income (Loss) attributable to 3M | $ | (34 | ) | $ | (45 | ) | $ | (89 | ) | $ | (71 | ) | |
| Earnings per share impact attributable to My Companycommon shareholders - diluted | $ | (0.05 | ) | $ | (0.06 | ) | $ | (0.13 | ) | $ | (0.10 | ) | |
| The following table summarizes stock option activity during the six months ended June 30, 2009: | |||||||||||||
| Remaining | Aggregate | ||||||||||||
| Number of | Exercise | Contractual | Intrinsic Value | ||||||||||
| Stock Options | Options | Price* | Life* (months) | (millions) | |||||||||
| Under option – | |||||||||||||
| January 1 | 75,452,722 | $ | 71.96 | ||||||||||
| Granted | |||||||||||||
| Annual | 6,649,672 | 53.93 | |||||||||||
| Progressive (Reload) | 4,678 | 50.83 | |||||||||||
| Exercised | (3,817,239 | ) | 47.37 | ||||||||||
| Canceled | (782,977 | ) | 72.38 | ||||||||||
| June 30 | 77,506,856 | $ | 71.62 | 63 | $ | 121 | |||||||
| Options exercisable | |||||||||||||
| June 30 | 65,576,834 | $ | 72.75 | 54 | $ | 80 | |||||||
| For the 2009 annual stock option grant, the weighted average fair value at the date of grant was calculated using the Black-Scholes option-pricing model and the assumptions that follow. | |||||||||||||
| Annual | |||||||||||||
| Stock Option Assumptions | 2009 | ||||||||||||
| Exercise price | $ | 54.11 | |||||||||||
| Risk-free interest rate | 2.2 | % | |||||||||||
| Dividend yield | 2.3 | % | |||||||||||
| Expected volatility | 30.3 | % | |||||||||||
| Expected life (months) | 71 | ||||||||||||
| Black-Scholes fair value | $ | 13 | |||||||||||
| Restricted Stock and | Number of | Grant Date | |||||||||||
| Restricted Stock Units | Awards | Fair Value* | |||||||||||
| Nonvested balance – | |||||||||||||
| As of January 1 | 2,957,538 | $ | 77.41 | ||||||||||
| Granted | |||||||||||||
| Annual | 1,151,093 | 53.89 | |||||||||||
| Other | 501,436 | 53.96 | |||||||||||
| Vested | (98,633 | ) | 53.57 | ||||||||||
| Forfeited | (69,858 | ) | 74.86 | ||||||||||
| As of June 30 | 4,441,576 | $ | 69.24 | ||||||||||