Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jun. 30, 2022 | |
Document Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-3285 | ||
Entity Registrant Name | 3M COMPANY | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 41-0417775 | ||
Entity Address, Address Line One | 3M Center | ||
Entity Address, City or Town | St. Paul | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55144 | ||
City Area Code | 651 | ||
Local Phone Number | 733-1110 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 73.7 | ||
Entity Common Stock, Shares Outstanding | 550,500,000 | ||
Documents Incorporated by Reference | Parts of the Company’s definitive proxy statement (to be filed pursuant to Regulation 14A within 120 days after Registrant’s fiscal year-end of December 31, 2022) for its annual meeting to be held on May 9, 2023, are incorporated by reference in this Form 10-K in response to Part III, Items 10, 11, 12, 13 and 14. | ||
Entity Central Index Key | 0000066740 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Common Stock, Par Value $.01 Per Share | New York Stock Exchange | |||
Document Information | |||
Title of 12(b) Security | Common Stock, Par Value $.01 Per Share | ||
Trading Symbol | MMM | ||
Security Exchange Name | NYSE | ||
Common Stock, Par Value $.01 Per Share | Chicago Stock Exchange, Inc. | |||
Document Information | |||
Title of 12(b) Security | Common Stock, Par Value $.01 Per Share | ||
Trading Symbol | MMM | ||
Security Exchange Name | CHX | ||
0.950% Notes due 2023 | New York Stock Exchange | |||
Document Information | |||
Title of 12(b) Security | 0.950% Notes due 2023 | ||
Trading Symbol | MMM23 | ||
Security Exchange Name | NYSE | ||
1.500% Notes due 2026 | New York Stock Exchange | |||
Document Information | |||
Title of 12(b) Security | 1.500% Notes due 2026 | ||
Trading Symbol | MMM26 | ||
Security Exchange Name | NYSE | ||
1.750% Notes due 2030 | New York Stock Exchange | |||
Document Information | |||
Title of 12(b) Security | 1.750% Notes due 2030 | ||
Trading Symbol | MMM30 | ||
Security Exchange Name | NYSE | ||
1.500% Notes due 2031 | New York Stock Exchange | |||
Document Information | |||
Title of 12(b) Security | 1.500% Notes due 2031 | ||
Trading Symbol | MMM31 | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Minneapolis, Minnesota |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 34,229,000,000 | $ 35,355,000,000 | $ 32,184,000,000 |
Operating expenses | |||
Cost of sales | 19,232,000,000 | 18,795,000,000 | 16,605,000,000 |
Selling, general and administrative expenses | 9,049,000,000 | 7,197,000,000 | 6,929,000,000 |
Research, development and related expenses | 1,862,000,000 | 1,994,000,000 | 1,878,000,000 |
Gain on business divestitures | (2,724,000,000) | 0 | (389,000,000) |
Goodwill impairment expense | 271,000,000 | 0 | 0 |
Total operating expenses | 27,690,000,000 | 27,986,000,000 | 25,023,000,000 |
Operating income | 6,539,000,000 | 7,369,000,000 | 7,161,000,000 |
Other expense (income), net | 147,000,000 | 165,000,000 | 366,000,000 |
Income before income taxes | 6,392,000,000 | 7,204,000,000 | 6,795,000,000 |
Provision for income taxes | 612,000,000 | 1,285,000,000 | 1,337,000,000 |
Income of consolidated group | 5,780,000,000 | 5,919,000,000 | 5,458,000,000 |
Income (loss) from unconsolidated subsidiaries, net of taxes | 11,000,000 | 10,000,000 | (5,000,000) |
Net income including noncontrolling interest | 5,791,000,000 | 5,929,000,000 | 5,453,000,000 |
Less: Net income (loss) attributable to noncontrolling interest | 14,000,000 | 8,000,000 | 4,000,000 |
Net income attributable to 3M | $ 5,777,000,000 | $ 5,921,000,000 | $ 5,449,000,000 |
Weighted average 3M common shares outstanding - basic (in shares) | 566 | 579 | 577.6 |
Earnings per share attributable to 3M common shareholders - basic (in dollars per share) | $ 10.21 | $ 10.23 | $ 9.43 |
Weighted average 3M common shares outstanding - diluted (in shares) | 567.6 | 585.3 | 582.2 |
Earnings per share attributable to 3M common shareholders - diluted (in dollars per share) | $ 10.18 | $ 10.12 | $ 9.36 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income including noncontrolling interest | $ 5,791 | $ 5,929 | $ 5,453 |
Other comprehensive income (loss), net of tax: | |||
Cumulative translation adjustment | (893) | (494) | 447 |
Defined benefit pension and postretirement plans adjustment | 915 | 1,345 | 106 |
Cash flow hedging instruments | 47 | 119 | (142) |
Total other comprehensive income (loss), net of tax | 69 | 970 | 411 |
Comprehensive income (loss) including noncontrolling interest | 5,860 | 6,899 | 5,864 |
Comprehensive (income) loss attributable to noncontrolling interest | (6) | (7) | (2) |
Comprehensive income (loss) attributable to 3M | $ 5,854 | $ 6,892 | $ 5,862 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 3,655 | $ 4,564 |
Marketable securities — current | 238 | 201 |
Accounts receivable — net of allowances of $174 and $189 | 4,532 | 4,660 |
Inventories | ||
Finished goods | 2,497 | 2,196 |
Work in process | 1,606 | 1,577 |
Raw materials and supplies | 1,269 | 1,212 |
Total inventories | 5,372 | 4,985 |
Prepaids | 435 | 654 |
Other current assets | 456 | 339 |
Total current assets | 14,688 | 15,403 |
Property, plant and equipment | 25,998 | 27,213 |
Less: Accumulated depreciation | (16,820) | (17,784) |
Property, plant and equipment — net | 9,178 | 9,429 |
Operating lease right of use assets | 829 | 858 |
Goodwill | 12,790 | 13,486 |
Intangible assets — net | 4,699 | 5,288 |
Other assets | 4,271 | 2,608 |
Total assets | 46,455 | 47,072 |
Current liabilities | ||
Short-term borrowings and current portion of long-term debt | 1,938 | 1,307 |
Accounts payable | 3,183 | 2,994 |
Accrued payroll | 692 | 1,020 |
Accrued income taxes | 259 | 260 |
Operating lease liabilities — current | 261 | 263 |
Other current liabilities | 3,190 | 3,191 |
Total current liabilities | 9,523 | 9,035 |
Long-term debt | 14,001 | 16,056 |
Pension and postretirement benefits | 1,966 | 2,870 |
Operating lease liabilities | 580 | 591 |
Other liabilities | 5,615 | 3,403 |
Total liabilities | 31,685 | 31,955 |
Commitments and contingencies (Note 16) | ||
3M Company shareholders’ equity: | ||
Common stock | 9 | 9 |
Additional paid-in capital | 6,691 | 6,429 |
Retained earnings | 47,950 | 45,821 |
Treasury stock, at cost: | (33,255) | (30,463) |
Accumulated other comprehensive income (loss) | (6,673) | (6,750) |
Total 3M Company shareholders’ equity | 14,722 | 15,046 |
Noncontrolling interest | 48 | 71 |
Total equity | 14,770 | 15,117 |
Total liabilities and equity | $ 46,455 | $ 47,072 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Allowances for doubtful accounts receivable | $ 174 | $ 189 |
3M Company shareholders’ equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 944,033,056 | 944,033,056 |
Common stock, outstanding (in shares) | 549,245,105 | 571,845,478 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Common Stock and Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interest |
Balance at the beginning of the period at Dec. 31, 2019 | $ 10,126 | $ 5,916 | $ 42,130 | $ (29,849) | $ (8,134) | $ 63 |
Increase (decrease) in equity | ||||||
Net income | 5,453 | 5,449 | 4 | |||
Other comprehensive income (loss), net of tax: | ||||||
Cumulative translation adjustment | 447 | 449 | (2) | |||
Defined benefit pension and postretirement plans adjustment | 106 | 106 | ||||
Cash flow hedging instruments - unrealized gain (loss) | (142) | (142) | ||||
Total other comprehensive income (loss), net of tax | 411 | 413 | ||||
Dividends declared | (3,388) | (3,388) | ||||
Purchase of non-controlling interest | (1) | (1) | ||||
Stock-based compensation | 255 | 255 | ||||
Reacquired stock | (358) | (358) | ||||
Issuances pursuant to stock options and benefit plans | 433 | (370) | 803 | |||
Balance at the end of the period at Dec. 31, 2020 | 12,931 | 6,171 | 43,821 | (29,404) | (7,721) | 64 |
Increase (decrease) in equity | ||||||
Net income | 5,929 | 5,921 | 8 | |||
Other comprehensive income (loss), net of tax: | ||||||
Cumulative translation adjustment | (494) | (493) | (1) | |||
Defined benefit pension and postretirement plans adjustment | 1,345 | 1,345 | ||||
Cash flow hedging instruments - unrealized gain (loss) | 119 | 119 | ||||
Total other comprehensive income (loss), net of tax | 970 | 971 | ||||
Dividends declared | (3,420) | (3,420) | ||||
Stock-based compensation | 267 | 267 | ||||
Reacquired stock | (2,199) | (2,199) | ||||
Issuances pursuant to stock options and benefit plans | 639 | (501) | 1,140 | |||
Balance at the end of the period at Dec. 31, 2021 | 15,117 | 6,438 | 45,821 | (30,463) | (6,750) | 71 |
Increase (decrease) in equity | ||||||
Net income | 5,791 | 5,777 | 14 | |||
Other comprehensive income (loss), net of tax: | ||||||
Cumulative translation adjustment | (893) | (885) | (8) | |||
Defined benefit pension and postretirement plans adjustment | 915 | 915 | ||||
Cash flow hedging instruments - unrealized gain (loss) | 47 | 47 | ||||
Total other comprehensive income (loss), net of tax | 69 | 77 | ||||
Dividends declared | (3,369) | (3,369) | ||||
Stock-based compensation | 262 | 262 | ||||
Reacquired stock | (1,464) | (1,464) | ||||
Dividend to noncontrolling interest | (29) | (29) | ||||
Split-off of Food Safety business | (1,988) | (1,988) | ||||
Issuances pursuant to stock options and benefit plans | 381 | (279) | 660 | |||
Balance at the end of the period at Dec. 31, 2022 | $ 14,770 | $ 6,700 | $ 47,950 | $ (33,255) | $ (6,673) | $ 48 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||||||
Dividends declared (in dollars per share) | $ 1.49 | $ 1.49 | $ 1.49 | $ 1.49 | $ 1.48 | $ 1.48 | $ 1.48 | $ 1.48 | $ 1.47 | $ 1.47 | $ 1.47 | $ 1.47 | $ 5.96 | $ 5.92 | $ 5.88 |
Supplemental Share Information
Supplemental Share Information (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (decrease) in equity | |||
Treasury stock, beginning balance (in shares) | 372,187,578 | 366,283,418 | 368,848,221 |
Reacquired stock (in shares) | 10,865,635 | 11,834,681 | 2,286,109 |
Split-off of Food Safety business (in shares) | 15,989,536 | 0 | 0 |
Issuances pursuant to stock options and benefit plans (in shares) | (4,254,798) | (5,930,521) | (4,850,912) |
Treasury stock, ending balance (in shares) | 394,787,951 | 372,187,578 | 366,283,418 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | |||
Net income including noncontrolling interest | $ 5,791,000,000 | $ 5,929,000,000 | $ 5,453,000,000 |
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities | |||
Depreciation and amortization | 1,831,000,000 | 1,915,000,000 | 1,911,000,000 |
Long-lived and indefinite-lived asset impairment expense | 618,000,000 | 0 | 6,000,000 |
Goodwill impairment expense | 271,000,000 | 0 | 0 |
Company pension and postretirement contributions | (158,000,000) | (180,000,000) | (156,000,000) |
Company pension and postretirement expense | 178,000,000 | 206,000,000 | 322,000,000 |
Stock-based compensation expense | 263,000,000 | 274,000,000 | 262,000,000 |
Gain on business divestitures | (2,724,000,000) | 0 | (389,000,000) |
Deferred income taxes | (663,000,000) | (166,000,000) | (165,000,000) |
Changes in assets and liabilities | |||
Accounts receivable | (105,000,000) | (122,000,000) | 165,000,000 |
Inventories | (629,000,000) | (903,000,000) | (91,000,000) |
Accounts payable | 111,000,000 | 518,000,000 | 252,000,000 |
Accrued income taxes (current and long-term) | (47,000,000) | (244,000,000) | 132,000,000 |
Other — net | 854,000,000 | 227,000,000 | 411,000,000 |
Net cash provided by (used in) operating activities | 5,591,000,000 | 7,454,000,000 | 8,113,000,000 |
Cash Flows from Investing Activities | |||
Purchases of property, plant and equipment (PP&E) | (1,749,000,000) | (1,603,000,000) | (1,501,000,000) |
Proceeds from sale of PP&E and other assets | 200,000,000 | 51,000,000 | 128,000,000 |
Acquisitions, net of cash acquired | 0 | 0 | (25,000,000) |
Purchases of marketable securities and investments | (1,250,000,000) | (2,202,000,000) | (1,579,000,000) |
Proceeds from maturities and sale of marketable securities and investments | 1,261,000,000 | 2,406,000,000 | 1,811,000,000 |
Proceeds from sale of businesses, net of cash sold | 13,000,000 | 0 | 576,000,000 |
Cash payment from Food Safety business split-off, net of divested cash | 478,000,000 | 0 | 0 |
Other — net | 1,000,000 | 31,000,000 | 10,000,000 |
Net cash provided by (used in) investing activities | (1,046,000,000) | (1,317,000,000) | (580,000,000) |
Cash Flows from Financing Activities | |||
Change in short-term debt — net | 340,000,000 | (2,000,000) | (143,000,000) |
Repayment of debt (maturities greater than 90 days) | (1,179,000,000) | (1,144,000,000) | (3,482,000,000) |
Proceeds from debt (maturities greater than 90 days) | 1,000,000 | 1,000,000 | 1,750,000,000 |
Purchases of treasury stock | (1,464,000,000) | (2,199,000,000) | (368,000,000) |
Proceeds from issuance of treasury stock pursuant to stock option and benefit plans | 381,000,000 | 639,000,000 | 429,000,000 |
Dividends paid to shareholders | (3,369,000,000) | (3,420,000,000) | (3,388,000,000) |
Other — net | (60,000,000) | (20,000,000) | (98,000,000) |
Net cash provided by (used in) financing activities | (5,350,000,000) | (6,145,000,000) | (5,300,000,000) |
Effect of exchange rate changes on cash and cash equivalents | (104,000,000) | (62,000,000) | 48,000,000 |
Net increase (decrease) in cash and cash equivalents | (909,000,000) | (70,000,000) | 2,281,000,000 |
Cash and cash equivalents at beginning of year | 4,564,000,000 | 4,634,000,000 | 2,353,000,000 |
Cash and cash equivalents at end of period | $ 3,655,000,000 | $ 4,564,000,000 | $ 4,634,000,000 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Consolidation: 3M is a diversified global manufacturer, technology innovator and marketer of a wide variety of products. All applicable subsidiaries are consolidated. All intercompany transactions are eliminated. As used herein, the term “3M” or “Company” refers to 3M Company and subsidiaries unless the context indicates otherwise. 3M deconsolidated the Aearo Entities in the third quarter of 2022. See additional information in Note 16. Basis of presentation: Certain amounts in the prior years’ consolidated financial statements have been reclassified to conform to the current year presentation. Effective in the first quarter of 2022, 3M made changes in the measure of segment operating performance used by 3M’s chief operating decision maker—impacting 3M’s disclosed measure of segment profit/loss (business segment operating income). See additional information in Note 19. 3M's disclosed disaggregated revenue was also updated as a result of the changes in segment reporting. See additional information in Note 2. Information provided herein reflects the impact of these changes for all periods presented. Foreign currency translation: Local currencies generally are considered the functional currencies outside the United States. Exceptions include 3M’s subsidiaries in Argentina and, beginning in the second quarter of 2022, in Turkey, the economy of which also became highly inflationary. The operating income and balances of underlying net monetary assets denominated in Turkish lira are not material to 3M. The financial statements of these subsidiaries are remeasured as if their functional currency is that of their parent. Assets and liabilities for operations in local-currency environments are translated at month-end exchange rates of the period reported. Income and expense items are translated at average monthly currency exchange rates in effect during the period. Cumulative translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in shareholders’ equity. Use of estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company considered the coronavirus (COVID-19) related impacts on its estimates, as appropriate, within its consolidated financial statements and there may be changes to those estimates in future periods. 3M believes that the accounting estimates are appropriate after giving consideration to the increased uncertainties surrounding the severity and duration of the COVID-19 pandemic. Such estimates and assumptions are subject to inherent uncertainties which may result in actual amounts differing from these estimates. Cash and cash equivalents: Cash and cash equivalents consist of cash and temporary investments with maturities of three months or less when acquired. Marketable securities: Marketable securities include available-for-sale debt securities and are recorded at fair value. Cost of securities sold use the first in, first out (FIFO) method. The classification of marketable securities as current or non-current is based on the availability for use in current operations. 3M reviews impairments associated with its marketable securities in accordance with the measurement guidance provided by ASC 320, Investments-Debt Securities and ASC 326-30, Available-for-Sale Debt Securities, when determining whether a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. An impairment relating to credit losses is recorded through an allowance for credit losses. The allowance is limited by the amount that the fair value is less than the amortized cost basis. A change in the allowance for credit losses is recorded into earnings in the period of the change. Any impairment that has not been recorded through an allowance for credit losses is recorded through accumulated other comprehensive income as a component of shareholders’ equity. The factors considered in determining whether a credit loss exists can include the extent to which fair value is less than the amortized cost basis, changes in the credit quality of the underlying loan obligors, credit ratings actions, as well as other factors. When a credit loss exists, the Company compares the present value of cash flows expected to be collected from the debt security with the amortized cost basis of the security to determine what allowance amount, if any, should be recorded. Amounts are reclassified out of accumulated other comprehensive income and into earnings upon sale or a change in the portions of impairment related to credit losses and not related to credit losses. Investments: All equity securities that do not result in consolidation and are not accounted for under the equity method are measured at fair value with changes therein reflected in net income. 3M utilizes the measurement alternative for equity investments that do not have readily determinable fair values and measures these investments at cost less impairment plus or minus observable price changes in orderly transactions. The balance of these securities is disclosed in Note 7. Other assets: Other assets include deferred income taxes, product and other insurance receivables, the cash surrender value of life insurance policies, medical equipment in rental arrangements utilized primarily by hospitals and other medical clinics, prepaid pension and postretirement and other long-term assets. Investments in life insurance policies are reported at the amount that could be realized under contract at the balance sheet date, with any changes in cash surrender value or contract value during the period accounted for as an adjustment of premiums paid. Cash outflows and inflows associated with life insurance activity are included in “Purchases of marketable securities and investments” and “Proceeds from maturities and sale of marketable securities and investments,” respectively. Inventories: Inventories are stated at the lower of cost or net realizable value (NRV), which is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Cost is generally determined on a first-in, first-out basis. Property, plant and equipment: Property, plant and equipment, including capitalized interest and internal direct engineering costs, are recorded at cost. Depreciation of property, plant and equipment generally is computed using the straight-line method based on the estimated useful lives of the assets. The estimated useful lives of buildings and improvements primarily range from ten twenty three five Conditional asset retirement obligations: A liability is initially recorded at fair value for an asset retirement obligation associated with the retirement of tangible long-lived assets in the period in which it is incurred if a reasonable estimate of fair value can be made. Conditional asset retirement obligations exist for certain long-term assets of the Company. The obligation is initially measured at fair value using expected present value techniques. Over time the liabilities are accreted for the change in their present value and the initial capitalized costs are depreciated over the remaining useful lives of the related assets. The asset retirement obligation liability was $177 million and $176 millions at December 31, 2022 and 2021, respectively. Goodwill: Goodwill is the excess of cost of an acquired entity over the amounts assigned to assets acquired and liabilities assumed in a business combination. Goodwill is not amortized. Goodwill is tested for impairment annually in the fourth quarter of each year, and is tested for impairment between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is done at a reporting unit level, with all goodwill assigned to a reporting unit. Reporting units are one level below the business segment level, but are required to be combined when reporting units within the same segment have similar economic characteristics. 3M did not combine any of its reporting units for impairment testing. The impairment loss is measured as the amount by which the carrying value of the reporting unit’s net assets exceeds its estimated fair value, not to exceed the carrying value of the reporting unit’s goodwill. The estimated fair value of a reporting unit is determined based on a market approach using comparable company information such as EBITDA (earnings before interest, taxes, depreciation and amortization) multiples or, in some cases, based on a discounted cash flow analysis. Companies have the option to first assess qualitative factors to determine whether the fair value of a reporting unit is not “more likely than not” less than its carrying amount, which is commonly referred to as “Step 0”. 3M has chosen not to apply Step 0 for its annual goodwill assessments. Intangible assets: Intangible asset types include customer related, patents, other technology-based, tradenames and other intangible assets acquired from an independent party. Intangible assets with a definite life are amortized over a period ranging from six twelve eight six eleven Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss is recognized when the carrying amount exceeds the estimated undiscounted cash flows from the asset’s or asset group’s ongoing use and eventual disposition. If an impairment is identified, the amount of the impairment loss recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. Intangible assets with an indefinite life, namely certain tradenames, are not amortized. Indefinite-lived intangible assets are tested for impairment annually in the third quarter of each year, and are tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount may be impaired. An impairment loss would be recognized when the fair value is less than the carrying value of the indefinite-lived intangible asset. Restructuring actions: Restructuring actions generally include significant actions involving employee-related severance charges, contract termination costs, and impairment or accelerated depreciation/amortization 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 when the actions are probable and the amounts are estimable, which typically is when management approves the associated actions. Severance amounts for which affected employees in certain circumstances are 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. Revenue (sales) recognition: The Company sells a wide range of products to a diversified base of customers around the world and has no material concentration of credit risk or significant payment terms extended to customers. The vast majority of 3M’s customer arrangements contain a single performance obligation to transfer manufactured goods as the promise to transfer the individual goods is not separately identifiable from other promises in the contracts and, therefore, not distinct. However, to a limited extent 3M also enters into customer arrangements that involve intellectual property out-licensing, multiple performance obligations (such as equipment, installation and service), software with coterminous post-contract support, services and non-standard terms and conditions. The Company recognizes revenue in light of the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers . Revenue is recognized when control of goods has transferred to customers. For the majority of the Company’s customer arrangements, control transfers to customers at a point-in-time when goods/services have been delivered as that is generally when legal title, physical possession and risks and rewards of goods/services transfer to the customer. In limited arrangements, control transfers over time as the customer simultaneously receives and consumes the benefits as 3M completes the performance obligation(s). Revenue is recognized at the transaction price which the Company expects to be entitled. When determining the transaction price, 3M estimates variable consideration applying the portfolio approach practical expedient under ASC 606. The main sources of variable consideration for 3M are customer rebates, trade promotion funds, and cash discounts. These sales incentives are recorded as a reduction to revenue at the time of the initial sale using the most-likely amount estimation method. The most-likely amount method is based on the single most likely outcome from a range of possible consideration outcomes. The range of possible consideration outcomes are primarily derived from the following inputs: sales terms, historical experience, trend analysis, and projected market conditions in the various markets served. Because 3M serves numerous markets, the sales incentive programs offered vary across businesses, but the most common incentive relates to amounts paid or credited to customers for achieving defined volume levels or growth objectives. There are no material instances where variable consideration is constrained and not recorded at the initial time of sale. Free goods are accounted for as an expense and recorded in cost of sales. Product returns are recorded as a reduction to revenue based on anticipated sales returns that occur in the normal course of business. 3M primarily has assurance-type warranties that do not result in separate performance obligations. Sales, use, value-added, and other excise taxes are not recognized in revenue. The Company has elected to present revenue net of sales taxes and other similar taxes. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using 3M’s best estimate of the standalone selling price of each distinct good or service in the contract. The Company did not recognize any material revenue in the current reporting period for performance obligations that were fully satisfied in previous periods. The Company does not have material unfulfilled performance obligation balances for contracts with an original length greater than one year in any years presented. Additionally, the Company does not have material costs related to obtaining a contract with amortization periods greater than one year for any year presented. 3M applies ASC 606 utilizing the following allowable exemptions or practical expedients: • Exemption to not disclose the unfulfilled performance obligation balance for contracts with an original length of one year or less. • Practical expedient relative to costs of obtaining a contract by expensing sales commissions when incurred because the amortization period would have been one year or less. • Portfolio approach practical expedient relative to estimation of variable consideration. • “Right to invoice” practical expedient based on 3M’s right to invoice the customer at an amount that reasonably represents the value to the customer of 3M’s performance completed to date. • Election to present revenue net of sales taxes and other similar taxes. • Sales-based royalty exemption permitting future intellectual property out-licensing royalty payments to be excluded from the otherwise required remaining performance obligations disclosure The Company recognizes revenue from the rental of durable medical devices in accordance with the guidance of ASC 842, Leases . The Company recognizes rental revenue based on the length of time a device is used by the patient/organization, (i) at the contracted rental rate for contracted customers and (ii) generally, retail price for non-contracted customers. The leases are short-term in nature, generally providing for daily or monthly pricing, and are all classified as operating leases. Accounts receivable and allowances: Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains allowances for bad debts, cash discounts, and various other items. The allowances for bad debts and cash discounts are based on the best estimate of the amount of expected credit losses in existing accounts receivable and anticipated cash discounts. The Company determines the allowances based on historical write-off experience, current expectations of future credit losses informed by industry and regional economic data, and historical cash discounts. The Company reviews the allowances monthly. The allowances for bad debts as well as the provision for credit losses, write-off activity and recoveries for the periods presented are not material. The Company does not have any significant off-balance-sheet credit exposure related to its customers. The Company has long-term customer receivables that do not have significant credit risk, and the origination dates of which are typically not older than five years. These long-term receivables are subject to an allowance methodology similar to other receivables. Advertising and merchandising: These costs are charged to operations in the period incurred, and totaled $323 million, $327 million and $278 million in 2022, 2021 and 2020, respectively. Research, development and related expenses: These costs are charged to operations in the period incurred and are shown on a separate line of the Consolidated Statement of Income. Research, development and related expenses totaled $1.9 billion, $2.0 billion and $1.9 billion in 2022, 2021 and 2020, respectively. Research and development expenses, covering basic scientific research and the application of scientific advances in the development of new and improved products and their uses, totaled $1.1 billion, $1.2 billion and $1.1 billion in 2022, 2021 and 2020, respectively. Related expenses primarily include technical support; internally developed patent costs, which include costs and fees incurred to prepare, file, secure and maintain patents; amortization of externally acquired patents and externally acquired in-process research and development; and gains/losses associated with certain corporate approved investments in R&D-related ventures. Internal-use software: The Company capitalizes direct costs of services used in the development of, and external software acquired for use as, internal-use software. Amounts capitalized are amortized over a period of three Environmental: Environmental expenditures relating to existing conditions caused by past operations that do not contribute to current or future revenues are expensed. Reserves for liabilities related to anticipated remediation costs are recorded on an undiscounted basis when they are probable and reasonably estimable, generally no later than the completion of feasibility studies, the Company’s commitment to a plan of action, or approval by regulatory agencies. Environmental expenditures for capital projects that contribute to current or future operations generally are capitalized and depreciated over their estimated useful lives. Income taxes: The provision for income taxes is determined using the asset and liability approach. Under this approach, deferred income taxes represent the expected future tax consequences of temporary differences between the carrying amounts and tax basis of assets and liabilities. The Company records a valuation allowance to reduce its deferred tax assets when uncertainty regarding their realizability exists. As of December 31, 2022 and December 31, 2021, the Company had valuation allowances of $115 million and $142 million on its deferred tax assets, respectively. The Company recognizes and measures its uncertain tax positions based on the rules under ASC 740, Income Taxes . Earnings per share: The difference in the weighted average 3M shares outstanding for calculating basic and diluted earnings per share attributable to 3M common shareholders is the result of the dilution associated with the Company’s stock-based compensation plans. Certain options outstanding under these stock-based compensation plans during the years 2022, 2021 and 2020 were not included in the computation of diluted earnings per share attributable to 3M common shareholders because they would have had an anti-dilutive effect (30.3 million average options for 2022, 7.8 million average options for 2021, and 18.1 million average options for 2020). The computations for basic and diluted earnings per share follow: Earnings Per Share Computations (Amounts in millions, except per share amounts) 2022 2021 2020 Numerator: Net income attributable to 3M $ 5,777 $ 5,921 $ 5,449 Denominator: Denominator for weighted average 3M common shares outstanding – basic 566.0 579.0 577.6 Dilution associated with the Company’s stock-based compensation plans 1.6 6.3 4.6 Denominator for weighted average 3M common shares outstanding – diluted 567.6 585.3 582.2 Earnings per share attributable to 3M common shareholders – basic $ 10.21 $ 10.23 $ 9.43 Earnings per share attributable to 3M common shareholders – diluted $ 10.18 $ 10.12 $ 9.36 Stock-based compensation: The Company recognizes compensation expense for its stock-based compensation programs, which include stock options, restricted stock, restricted stock units (RSUs), performance shares, and the General Employees’ Stock Purchase Plan (GESPP). Under applicable accounting standards, the fair value of share-based compensation is determined at the grant date and the recognition of the related expense is recorded over the period in which the share-based compensation vests. However, with respect to income taxes, the related deduction from taxes payable is based on the award’s intrinsic value at the time of exercise (for an option) or on the fair value upon vesting of the award (for RSUs), which can be either greater (creating an excess tax benefit) or less (creating a tax deficiency) than the deferred tax benefit recognized as compensation cost is recognized in the financial statements. These excess tax benefits/deficiencies are recognized as income tax benefit/expense in the statement of income and, within the statement of cash flows, are classified in operating activities in the same manner as other cash flows related to income taxes. The extent of excess tax benefits/deficiencies is subject to variation in 3M stock price and timing/extent of RSU vestings and employee stock option exercises. Comprehensive income: Total comprehensive income and the components of accumulated other comprehensive income (loss) are presented in the Consolidated Statement of Comprehensive Income and the Consolidated Statement of Changes in Equity. Accumulated other comprehensive income (loss) is composed of foreign currency translation effects (including hedges of net investments in international companies), defined benefit pension and postretirement plan adjustments, unrealized gains and losses on available-for-sale debt securities, and unrealized gains and losses on cash flow hedging instruments. The Company uses the portfolio approach for releasing income tax effects from accumulated other comprehensive income. Derivatives and hedging activities: All derivative instruments within the scope of ASC 815, Derivatives and Hedging , are recorded on the balance sheet at fair value. The Company uses interest rate swaps, currency swaps, and foreign currency forward and option contracts to manage risks generally associated with foreign exchange rate and interest rate volatility. All hedging instruments that qualify for hedge accounting are designated and effective as hedges, in accordance with U.S. generally accepted accounting principles. If the underlying hedged transaction ceases to exist, all changes in fair value of the related derivatives that have not been settled are recognized in current earnings. Instruments that do not qualify for hedge accounting are marked to market with changes recognized in current earnings. Cash flows from derivative instruments are classified in the statement of cash flows in the same category as the cash flows from the items subject to designated hedge or undesignated (economic) hedge relationships. The Company does not hold or issue derivative financial instruments for trading purposes and is not a party to leveraged derivatives. Credit risk: The Company is exposed to credit loss in the event of nonperformance by counterparties in interest rate swaps, currency swaps, and forward and option contracts. However, the Company’s risk is limited to the fair value of the instruments. The Company actively monitors its exposure to credit risk through the use of credit approvals and credit limits, and by selecting major international banks and financial institutions as counterparties. 3M enters into master netting arrangements with counterparties when possible to mitigate credit risk in derivative transactions. A master netting arrangement may allow each counterparty to net settle amounts owed between a 3M entity and the counterparty as a result of multiple, separate derivative transactions. The Company does not anticipate nonperformance by any of these counterparties. 3M has elected to present the fair value of derivative assets and liabilities within the Company’s consolidated balance sheet on a gross basis even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. Fair value measurements: 3M follows ASC 820, Fair Value Measurements and Disclosures , with respect to assets and liabilities that are measured at fair value on a recurring basis and nonrecurring basis. Under the 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 Company’s 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. Acquisitions: The Company accounts for business acquisitions in accordance with ASC 805, Business Combinations . This standard requires the acquiring entity in a business combination to recognize all (and only) the assets acquired and liabilities assumed in the transaction and establishes the acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed in a business combination. Certain provisions of this standard prescribe, among other things, the determination of acquisition-date fair value of consideration paid in a business combination (including contingent consideration) and the exclusion of transaction and acquisition-related restructuring costs from acquisition accounting. 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. Leases: 3M determines if an arrangement is a lease upon inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The right to control the use of an asset includes the right to obtain substantially all of the economic benefits of the underlying asset and the right to direct how and for what purpose the asset is used. 3M determines certain service agreements that contain the right to use an underlying asset are not leases because 3M does not control how and for what purpose the identified asset is used. Examples of such agreements include master supply agreements, product processing agreements, warehouse and distribution services agreements, power purchase agreements, and transportation purchase agreements. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is 3M’s incremental borrowing rate or, if available, the rate implicit in the lease. 3M determines the incremental borrowing rate for leases using a portfolio approach based primarily on the lease term and the economic environment of the applicable country or region. As a lessee, the Company leases distribution centers, office space, land, and equipment. Certain 3M lease agreements include rental payments adjusted annually based on changes in an inflation index. 3M’s leases do not contain material residual value guarantees or material restrictive covenants. Lease expense is recognized on a straight-line basis over the lease term. Certain leases include one or more options to renew, with terms that can extend the lease term up to five years. 3M includes options to renew the lease as part of the right of use lease asset and liability when it is reasonably certain the Company will exercise the option. In addition, certain leases contain fair value purchase and termination options with an associated penalty. In general, 3M is not reasonably certain to exercise such options. For the measurement and classification of its lease agreements, 3M groups lease and non-lease components into a single lease component for all underlying asset classes. Variable lease payments primarily include payments for non-lease components, such as maintenance costs, payments for leased assets used beyond their noncancellable lease term as adjusted for contractual options to terminate or renew, additional payments related to a subsequent adjustment in an inflation index, and payments for non-components such as sales tax. Certain 3M leases contain immaterial variable lease payments based on number of units produced. Related Party Activity: Other than the amounts due by and between the Aearo Entities and related entities (as described in Note 16), 3M does not have any material related party activity. New Accounting Pronouncements The table below provides summaries of applicable new accounting pronouncements issued, but not yet adopted by 3M: Standards Issued and Not Yet Adopted Standard Relevant Description Effective Date for 3M Impact and Other Matters ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Issued in October 2021. Requires acquiring entities to apply A |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Contract Balances: Deferred revenue primarily relates to revenue that is recognized over time for one-year software license contracts. Refer to Note 7 for deferred revenue balances as of December 31, 2022 and 2021. Approximately $500 million of the December 31, 2021 balance was recognized as revenue during the year ended December 31, 2022, while approximately $470 million of the December 31, 2020 balance was recognized as revenue during the year ended December 31, 2021. Operating Lease Revenue: operating lease arrangements Disaggregated revenue information: The Company views the following disaggregated disclosures as useful to understanding the composition of revenue recognized during the respective reporting periods: Year ended December 31, Net Sales (Millions) 2022 2021 2020 Abrasives $ 1,343 $ 1,296 $ 1,077 Automotive Aftermarket 1,209 1,164 1,028 Closure and Masking Systems 1,046 1,033 993 Electrical Markets 1,304 1,229 1,093 Industrial Adhesives and Tapes 2,331 2,353 2,000 Personal Safety 3,916 4,470 4,408 Roofing Granules 455 428 389 Other Safety and Industrial — 8 (16) Total Safety and Industrial Business Segment 11,604 11,981 10,972 Advanced Materials 1,205 1,200 1,029 Automotive and Aerospace 1,754 1,756 1,522 Commercial Solutions 1,751 1,717 1,486 Electronics 3,359 3,673 3,497 Transportation Safety 833 907 880 Other Transportation and Electronics — 9 (8) Total Transportation and Electronics Business Segment 8,902 9,262 8,406 Drug Delivery — — 146 Food Safety 244 368 337 Health Information Systems 1,259 1,220 1,140 Medical Solutions 4,581 4,632 4,288 Oral Care 1,353 1,420 1,071 Separation and Purification Sciences 960 956 848 Other Health Care 24 1 2 Total Health Care Business Group 8,421 8,597 7,832 Consumer Health and Safety 569 588 540 Home Care 1,046 1,074 1,043 Home Improvement 2,392 2,548 2,260 Stationery and Office 1,291 1,306 1,132 Other Consumer — (3) 1 Total Consumer Business Group 5,298 5,513 4,976 Corporate and Unallocated 4 2 (2) Total Company $ 34,229 $ 35,355 $ 32,184 Year ended December 31, Net Sales (Millions) 2022 2021 2020 Americas $ 18,400 $ 18,097 $ 16,525 Asia Pacific 9,901 10,600 9,569 Europe, Middle East and Africa 5,928 6,660 6,109 Other Unallocated — (2) (19) Worldwide $ 34,229 $ 35,355 $ 32,184 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions: 3M makes acquisitions of certain businesses from time to time that are aligned with its strategic intent with respect to, among other factors, growth markets and adjacent product lines or technologies. Goodwill resulting from business combinations is largely attributable to the existing workforce of the acquired businesses and synergies expected to arise after 3M’s acquisition of these businesses. 2022 acquisitions: There were no acquisitions that closed during the year ended December 31, 2022. 2021 acquisitions: There were no acquisitions that closed during the year ended December 31, 2021. 2020 acquisitions: There were no acquisitions that closed during the year ended December 31, 2020. Divestitures: 3M may divest certain businesses from time to time based upon review of the Company’s portfolio considering, among other items, factors relative to the extent of strategic and technological alignment and optimization of capital deployment, in addition to considering if selling the businesses results in the greatest value creation for the Company and for shareholders. As discussed in Note 19 (Business Segments), gains/losses on business divestitures are reflected in Corporate and Unallocated. 2022 divestitures and previously announced divestitures: In March 2022, 3M completed the sale of its floor products business in Western Europe, formerly part of the Consumer business, for immaterial proceeds that approximated the business's book value. In July 2022, 3M announced its intention to spin off the Health Care business as a separate public company. 3M expects to initially retain an ownership position of 19.9% in the business, which 3M intends to monetize over time. The Company expects to complete the transaction, which is intended to be tax-free for U.S. federal income tax purposes, by year-end 2023. The transaction is subject to customary conditions, including final approval from the 3M Board of Directors, regulatory approvals and rulings, and satisfactory completion of financing, among other items. Because the intended transaction is a spin-off, the Health Care business is not classified as held for sale. In September 2022, 3M completed the split-off and combination of its Food Safety Division business (formerly part of the Health Care business segment) with Neogen Corporation in a transaction that involved a Reverse Morris Trust structure intended to make the split-off tax-efficient to 3M and 3M's shareholders for U.S. federal income tax purposes. As a result of the transaction, 3M reflected a pre-tax gain • $2.0 billion representing the value of 16 million 3M common shares accepted by 3M that reduced shares outstanding through a fully-subscribed exchange offer. The exchange ultimately resulted in subscribed 3M shareholders owning 50.1% of the common shares of Neogen. • $828 million in cash and non-cash components funded from debt that became obligations of Neogen. ◦ $478 million, net of divested cash, as a cash payment to 3M funded from Food Safety business borrowings coincident with the transaction that became obligations of Neogen. This amount is reflected in the investing section on the consolidated statement of cash flows. The amount was subject to closing and other adjustments and included cash paid to 3M for direct sales of certain net assets of the Food Safety business to Neogen. ◦ $350 million as part of a non-cash debt-for-debt exchange that reduced then-outstanding 3M commercial paper indebtedness and became new term-debt obligations of Neogen. 3M determined that the split-off involving the Reverse Morris Trust structure and certain internal business separation transactions qualify as tax-free for U.S. federal income tax purposes. In making these determinations, 3M applied U.S. federal tax law to relevant facts and circumstances and obtained a favorable private letter ruling from the Internal Revenue Service, third party tax opinions, and other external tax advice related to the concluded tax treatment. The applicable facts and circumstances that existed at the time of the Reverse Morris Trust split-off transactions may be reviewed as part of an audit by the Internal Revenue Service. If the completed transactions were later determined to fail to qualify for tax-free treatment for U.S. federal income tax purposes, the Company could be subject to significant liabilities, and there could be material adverse impacts on the Company’s business, financial condition, results of operations and cash flows in future reporting periods. Net sales information relative to the Food Safety Division is included in Note 2. Neogen and 3M entered into certain limited-term agreements related to post-divestiture transition supply, manufacturing and services and into certain longer-term commercial supply and distributor arrangements. 2021 divestitures: There were no divestitures that closed during the year ended December 31, 2021. 2020 divestitures: In January 2020, 3M completed the sale of its advanced ballistic-protection business, formerly part of the Transportation and Electronics business, to Avon Rubber p.l.c for $86 million in cash and recognized certain contingent consideration from the outcome of pending tenders. Further contingent consideration of less than $25 million may be recognized depending on outcomes in the future. The business, with annual sales of approximately $85 million, consists of ballistic helmets, body armor, flat armor and related helmet-attachment products serving government and law enforcement. 3M reflected immaterial impacts in the third quarter of 2019 as a result of measuring this disposal group at the lower of its carrying amount or fair value less cost to sell and in the first quarter 2020 related to completion of the divestiture and recognition of contingent consideration. In May 2020, 3M completed the sale of substantially all of its Drug Delivery Division business, formerly part of the Health Care business, to an affiliate of Altaris Capital Partners, LLC for $617 million in consideration including $487 million of cash, approximately $70 million in the form of an interest-bearing security, and approximately $60 million in the form of a 17 percent noncontrolling interest in the new company, Kindeva Drug Delivery (Kindeva). Non-cash consideration was valued at time of initial recognition on an income-based approach using relevant estimated future cash flows and applicable market interest rates while considering impacts of restrictions related to transferability. The divested business had annual sales of approximately $380 million. 3M retained its transdermal drug delivery components business. 3M reflected a pre-tax gain of $387 million as a result of the divestiture. The Company reflected its ownership interest in Kindeva using the equity method of accounting incorporating the recording of 3M’s share of earnings/losses on a lag-basis based on availability of Kindeva financial statements. As a result, income/loss from this unconsolidated subsidiary began to be reflected in 3M’s financial statements in the third quarter of 2020. Kindeva and 3M entered into certain limited-term agreements related to post-divestiture transition and supply services. In the fourth quarter of 2022, 3M sold its remaining ownership interest in Kindeva resulting in an immaterial gain. In the third quarter of 2020, 3M completed the sale of a small dermatology products business, formerly part of the Health Care business, for immaterial proceeds that approximated the business’s book value. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible AssetsGoodwillThere was no goodwill recorded from acquisitions during 2022 and 2021. The amounts in the “Translation and other” column in the following table primarily relate to changes in foreign currency exchange rates. The goodwill balance by business segment follows: (Millions) Safety and Industrial Transportation and Electronics Health Care Consumer Total Company Balance as of December 31, 2020 $ 4,687 $ 1,858 $ 6,992 $ 265 $ 13,802 Translation and other (65) (33) (206) (12) (316) Balance as of December 31, 2021 $ 4,622 $ 1,825 $ 6,786 $ 253 $ 13,486 Divestiture activity — — (16) — (16) Goodwill impairment — (271) — — (271) Translation and other (113) (53) (255) 12 (409) Balance as of December 31, 2022 $ 4,509 $ 1,501 $ 6,515 $ 265 $ 12,790 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 correspond to a division. As described in Note 19, effective in the first quarter of 2022, the Company changed its business segment reporting. For any product changes that resulted in reporting unit changes, the Company applied the relative fair value method to determine the impact on goodwill of the associated reporting units, the results of which were immaterial. Goodwill balances reported above reflect these business segment reporting changes in the earliest period presented. The Company also completed its annual goodwill impairment test in the fourth quarter of 2022 for all reporting units and determined that no impairment existed. Additionally, in December 2022, as a result of 3M's commitment to a plan to exit per- and polyfluoroalkyl substance (PFAS) manufacturing as described in Note 15, 3M recorded a goodwill impairment charge of $0.3 billion related to the Advanced Materials reporting unit (within the Transportation and Electronics business) resulting in no remaining goodwill for that reporting unit. This also represents the Company's accumulated goodwill impairment losses as of December 31, 2022. Acquired Intangible Assets The carrying amount and accumulated amortization of acquired finite-lived intangible assets, in addition to the balance of non-amortizable intangible assets follow: December 31, (Millions) 2022 2021 Customer related intangible assets $ 4,062 $ 4,216 Patents 426 513 Other technology-based intangible assets 2,081 2,111 Definite-lived tradenames 1,166 1,171 Other amortizable intangible assets 84 105 Total gross carrying amount 7,819 8,116 Accumulated amortization — customer related (1,747) (1,616) Accumulated amortization — patents (421) (500) Accumulated amortization — other technology-based (1,000) (839) Accumulated amortization — definite-lived tradenames (509) (447) Accumulated amortization — other (60) (79) Total accumulated amortization (3,737) (3,481) Total finite-lived intangible assets — net 4,082 4,635 Non-amortizable intangible assets (primarily tradenames) 617 653 Total intangible assets — net $ 4,699 $ 5,288 Certain tradenames acquired by 3M are not amortized because they have been in existence for over 60 years, have a history of leading-market share positions, have been and are intended to be continuously renewed, and the associated products of which are expected to generate cash flows for 3M for an indefinite period of time. As discussed in Note 15, in December 2022, as a result of 3M's commitment to a plan to exit per- and polyfluoroalkyl substance (PFAS) manufacturing, 3M recorded a charge in the fourth quarter of 2022 related to impairment of long-lived assets and an immaterial charge related to impairment of indefinite-lived assets. Amortization expense follows: Year ended December 31, (Millions) 2022 2021 2020 Amortization expense $ 498 $ 529 $ 537 Expected amortization expense for acquired amortizable intangible assets recorded as of December 31, 2022 follows: (Millions) 2023 2024 2025 2026 2027 After 2027 Amortization expense $ 479 $ 451 $ 421 $ 415 $ 390 $ 1,926 The preceding expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, changes in foreign currency exchange rates, impairment of intangible assets, accelerated amortization of intangible assets and other events. 3M expenses the costs incurred to renew or extend the term of intangible assets. |
Restructuring Actions
Restructuring Actions | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Actions | Restructuring Actions 2020 through 2022 Restructuring Action Operational/Marketing Capability Restructuring: In late 2020, 3M announced it would undertake certain actions beginning in the fourth quarter of 2020 to further enhance its operations and marketing capabilities to take advantage of certain global market trends while de-prioritizing investments in slower-growth end markets, resulting in a pre-tax charge of $137 million. In 2021, management approved and committed to undertake additional actions under this initiative resulting in a 2021 pre-tax charge of $124 million. In the first quarter of 2022, management approved and committed to undertake the remaining actions under this initiative resulting in a pre-tax charge of $18 million. This initiative, beginning in 2020 and ending with committed first quarter 2022 actions, impacted approximately 3,100 positions worldwide with a pre-tax charge of approximately $280 million over that period. The related restructuring charges for periods presented were recorded in the income statement as follows: (Millions) 2022 2021 2020 Cost of sales $ — $ 19 $ 51 Selling, general and administrative expenses 12 88 79 Research, development and related expenses 6 17 7 Total operating income impact $ 18 $ 124 $ 137 The business segment operating income impact of these restructuring charges is summarized as follows: 2022 2021 2020 (Millions) Employee-Related Employee-Related Employee Related Asset-Related and Other Total Safety and Industrial $ 2 $ 30 $ 36 $ 7 $ 43 Transportation and Electronics 4 24 16 12 28 Health Care 2 21 23 3 26 Consumer 2 7 10 1 11 Corporate and Unallocated 8 42 16 13 29 Total Operating Expense $ 18 $ 124 $ 101 $ 36 $ 137 Restructuring actions, including cash and non-cash impacts, follow: (Millions) Employee-Related Asset-Related and Other Total Expense incurred in the fourth quarter of 2020 $ 101 $ 36 $ 137 Non-cash changes — (36) (36) Accrued restructuring action balances as of December 31, 2020 101 — 101 Incremental expense incurred in 2021 124 — 124 Cash payments (127) — (127) Adjustments (11) — (11) Accrued restructuring action balance as of December 31, 2021 87 — 87 Incremental expense incurred in the first quarter of 2022 18 — 18 Cash payments (84) — (84) Adjustments (9) — (9) Accrued restructuring action balances as of June 30, 2022 $ 12 $ — $ 12 Remaining activities related to this restructuring were largely completed in the third quarter of 2022. 2022 Restructuring Actions: Divestiture-Related Restructuring During the third quarter of 2022, following the Food Safety Division split-off transaction and combination with Neogen completed in September 2022 (see Note 3) management approved and committed to undertake certain restructuring actions addressing corporate functional costs across 3M in relation to the magnitude of amounts previously allocated to the divested business. These actions affected approximately 850 positions worldwide and resulted in a third quarter 2022 pre-tax charge of $41 million, within Corporate and Unallocated. The divestiture-related restructuring actions were recorded in the income statement as follows: (Millions) 2022 Cost of sales $ 3 Selling, general and administrative expenses 36 Research, development and related expenses 2 Total operating income impact $ 41 Divestiture-related restructuring actions, including cash impacts, follow: (Millions) Employee-Related Expense incurred in the third quarter of 2022 41 Cash payments (31) Accrued restructuring action balances as of December 31, 2022 $ 10 Remaining activities related to this divestiture-related restructuring are expected to be largely completed through the first half of 2023. 2020 Restructuring Actions: Divestiture-Related Restructuring During the second quarter of 2020, following the divestiture of substantially all of the drug delivery business (see Note 3) management approved and committed to undertake certain restructuring actions addressing corporate functional costs and manufacturing footprint across 3M in relation to the magnitude of amounts previously allocated/burdened to the divested business. These actions affected approximately 1,300 positions worldwide and resulted in a second quarter 2020 pre-tax charge of $55 million, within Corporate and Unallocated. The divestiture-related restructuring actions were recorded in the income statement as follows: (Millions) 2020 Cost of sales $ 42 Selling, general and administrative expenses 12 Research, development and related expenses 1 Total operating income impact $ 55 Divestiture-related restructuring actions, including cash and non-cash impacts, follow: (Millions) Employee-Related Asset-Related and Other Total Expense incurred in the second quarter of 2020 $ 32 $ 23 $ 55 Non-cash changes — (14) (14) Cash payments (14) — (14) Adjustments (3) — (3) Accrued restructuring action balance as of December 31, 2020 15 9 24 Cash Payments (5) — (5) Adjustments (1) — (1) Accrued restructuring action balance as of June 30, 2021 $ 9 $ 9 $ 18 Remaining activities related to this divestiture-related restructuring were largely completed in the third quarter of 2021. Other Restructuring Additionally, in the second quarter of 2020, management approved and committed to undertake certain restructuring actions addressing structural enterprise costs and operations in certain end markets as a result of the COVID-19 pandemic and related economic impacts. These actions affected approximately 400 positions worldwide and resulted in a second quarter 2020 pre-tax charge of $58 million. The restructuring charges were recorded in the income statement as follows: (Millions) 2020 Cost of sales $ 13 Selling, general and administrative expenses 37 Research, development and related expenses 8 Total operating income impact $ 58 The business segment operating income impact of these restructuring charges is summarized as follows: 2020 ( Millions ) Employee-Related Asset-Related and Other Total Safety and Industrial $ 7 $ — $ 7 Transportation and Electronics 11 — 11 Health Care 12 — 12 Consumer 5 — 5 Corporate and Unallocated — 23 23 Total Operating Expense $ 35 $ 23 $ 58 Restructuring actions, including cash and non-cash impacts, follow: (Millions) Employee-Related Asset-Related Total Expense incurred in the second quarter of 2020 $ 35 $ 23 $ 58 Non-cash changes — (23) (23) Cash payments (2) — (2) Adjustments (9) — (9) Accrued restructuring action balances as of December 31, 2020 24 — 24 Cash Payments (4) — (4) Adjustments (9) — (9) Accrued restructuring action balances as of March 31, 2021 $ 11 $ — $ 11 Remaining activities related to this restructuring were largely completed in the second quarter of 2021. |
Supplemental Income Statement I
Supplemental Income Statement Information | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Supplemental Income Statement Information | Supplemental Income Statement Information Other expense (income), net consists of the following: (Millions) 2022 2021 2020 Interest expense $ 462 $ 488 $ 529 Interest income (67) (26) (29) Pension and postretirement net periodic benefit cost (benefit) (248) (297) (134) Total $ 147 $ 165 $ 366 Interest expense includes an early debt extinguishment pre-tax charge of approximately $11 million and $10 million in 2021 and 2020, respectively. Pension and postretirement net periodic benefit costs described in the table above include all components of defined benefit plan net periodic benefit costs except service cost, which is reported in various operating expense lines. Refer to Note 13 for additional details on the components of pension and postretirement net periodic benefit costs. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Additional supplemental balance sheet information is provided in the table that follows. (Millions) 2022 2021 Other current assets Derivative assets-current $ 162 $ 78 Insurance related (receivables, prepaid expenses and other) 103 110 Other 191 151 Total other current assets $ 456 $ 339 Property, plant and equipment - at cost Land $ 255 $ 312 Buildings and leasehold improvements 7,560 8,086 Machinery and equipment 16,455 17,305 Construction in progress 1,728 1,510 Gross property, plant and equipment 25,998 27,213 Accumulated depreciation (16,820) (17,784) Property, plant and equipment - net $ 9,178 $ 9,429 Other assets Deferred income taxes $ 959 $ 581 Prepaid pension and post retirement 1,225 943 Insurance related receivables and other 73 51 Cash surrender value of life insurance policies 265 261 Equity method investments 81 129 Equity and other investments 886 133 Other 782 510 Total other assets $ 4,271 $ 2,608 Other current liabilities Accrued rebates $ 751 $ 731 Deferred revenue 538 529 Derivative liabilities 31 23 Employee benefits and withholdings 247 219 Contingent liability claims and other 534 487 Property, sales-related and other taxes 224 326 Pension and postretirement benefits 77 78 Other 788 798 Total other current liabilities $ 3,190 $ 3,191 Other liabilities Long term income taxes payable $ 1,051 $ 1,324 Employee benefits 386 400 Contingent liability claims and other 2,179 872 Finance lease obligations 75 93 Deferred income taxes 559 458 Other 1,365 256 Total other liabilities $ 5,615 $ 3,403 Certain items in the table above include balances as of December 31, 2022 associated with the deconsolidated Aearo Entities as discussed further in Note 16. These include: • $0.7 billion asset balance in "equity and other investments" (within other assets). • $0.3 billion in "other" (within other assets). • $1.2 billion accrued liability largely reflected within "contingent liability claims and other" (within other liabilities). • $0.9 billion in "other" (within other liabilities). |
Supplemental Equity and Compreh
Supplemental Equity and Comprehensive Income Information | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Supplemental Equity and Comprehensive Income Information | Supplemental Equity and Comprehensive Income Information Common stock ($.01 par value per share) of 3 billion shares is authorized, with 944,033,056 shares issued as of December 31, 2022, 2021 and 2020. Preferred stock, without par value, of 10 million shares is authorized but unissued. Cash dividends declared and paid totaled $1.49, $1.48, and $1.47 per share for each quarter in 2022, 2021 and 2020, respectively, which resulted in total year declared and paid dividends of $5.96, $5.92, and $5.88 per share, respectively. Dividend to noncontrolling interest in 2022 of $29 million related to dividend paid by 3M India Limited, of which 3M’s effective ownership is 75 percent. Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component (Millions) Cumulative Translation Adjustment Defined Benefit Pension and Postretirement Plans Adjustment Cash Flow Hedging Instruments, Unrealized Gain (Loss) Total Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2019, net of tax: $ (1,899) $ (6,204) $ (31) $ (8,134) Other comprehensive income (loss), before tax: Amounts before reclassifications 387 (582) (113) (308) Amounts reclassified out — 619 (71) 548 Total other comprehensive income (loss), before tax 387 37 (184) 240 Tax effect 62 69 42 173 Total other comprehensive income (loss), net of tax 449 106 (142) 413 Balance at December 31, 2020, net of tax: (1,450) (6,098) (173) (7,721) Other comprehensive income (loss), before tax: Amounts before reclassifications (428) 1,223 108 903 Amounts reclassified out — 658 47 705 Total other comprehensive income (loss), before tax (428) 1,881 155 1,608 Tax effect (65) (536) (36) (637) Total other comprehensive income (loss), net of tax (493) 1,345 119 971 Balance at December 31, 2021, net of tax: $ (1,943) $ (4,753) $ (54) $ (6,750) Other comprehensive income (loss), before tax: Amounts before reclassifications (850) 866 159 175 Amounts reclassified out — 458 (98) 360 Total other comprehensive income (loss), before tax (850) 1,324 61 535 Tax effect (35) (409) (14) (458) Total other comprehensive income (loss), net of tax (885) 915 47 77 Balance at December 31, 2022, net of tax: $ (2,828) $ (3,838) $ (7) $ (6,673) Reclassifications out of Accumulated Other Comprehensive Income Attributable to 3M Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Location on Income Statement Year ended December 31, (Millions) 2022 2021 2020 Defined benefit pension and postretirement plans adjustments Gains (losses) associated with defined benefit pension and postretirement plans amortization Transition asset $ (2) $ (2) $ (2) Other (expense) income, net Prior service benefit 55 60 62 Other (expense) income, net Net actuarial loss (493) (689) (659) Other (expense) income, net Curtailments/Settlements (18) (27) (20) Other (expense) income, net Total before tax (458) (658) (619) Tax effect 108 160 148 Provision for income taxes Net of tax (350) (498) (471) Cash flow hedging instruments gains (losses) Foreign currency forward/option contracts 107 (38) 80 Cost of sales Interest rate contracts (9) (9) (9) Interest expense Total before tax 98 (47) 71 Tax effect (23) 11 (17) Provision for income taxes Net of tax 75 (36) 54 Total reclassifications for the period, net of tax $ (275) $ (534) $ (417) |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information (Millions) 2022 2021 2020 Cash income tax payments, net of refunds $ 1,320 $ 1,695 $ 1,351 Cash interest payments 440 472 524 Cash interest payments include interest paid on debt and finance lease balances. Cash interest payments exclude the cash paid for early debt extinguishment costs. Additional details are described in Note 12. Individual amounts in the Consolidated Statement of Cash Flows exclude the impacts of acquisitions, divestitures and exchange rate impacts, which are presented separately. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Before Income Taxes (Millions) 2022 2021 2020 United States $ 3,861 $ 3,716 $ 3,795 International 2,531 3,488 3,000 Total $ 6,392 $ 7,204 $ 6,795 Provision for Income Taxes (Millions) 2022 2021 2020 Currently payable Federal $ 606 $ 756 $ 720 State 76 104 123 International 621 597 632 Deferred Federal (612) (219) (44) State (76) (25) (17) International (2) 72 (77) Total $ 612 $ 1,285 $ 1,337 Components of Deferred Tax Assets and Liabilities (Millions) 2022 2021 Deferred tax assets: Accruals not currently deductible Employee benefit costs $ 232 $ 237 Product and other claims 610 257 Miscellaneous accruals 117 157 Pension costs 7 351 Stock-based compensation 259 249 Advanced payments 173 286 Net operating/capital loss/state tax credit carryforwards 120 120 Foreign tax credits 112 115 Research and experimentation capitalization 418 — Lease liabilities 210 219 Product and other insurance receivables — 48 Inventory 95 68 Other — 31 Gross deferred tax assets 2,353 2,138 Valuation allowance (115) (142) Total deferred tax assets 2,238 1,996 Deferred tax liabilities: Product and other insurance receivables (3) — Accelerated depreciation (586) (665) Intangible assets (901) (985) Currency translation (69) — Right-of-use asset (210) (222) Other (69) — Total deferred tax liabilities (1,838) (1,872) Net deferred tax assets $ 400 $ 124 The net deferred tax assets are included as components of Other Assets and Other Liabilities within the Consolidated Balance Sheet. See Note 7 “Supplemental Balance Sheet Information” for further details. As of December 31, 2022, the Company had tax effected operating losses, capital losses, and tax credit carryovers for federal (approximately $112 million), state (approximately $79 million), and international (approximately $40 million), with all amounts before limitation impacts and valuation allowances. Federal tax attribute carryovers will expire after one one Reconciliation of Effective Income Tax Rate 2022 2021 2020 Statutory U.S. tax rate 21.0 % 21.0 % 21.0 % Food Safety divestiture (8.4) — — State income taxes - net of federal benefit — 0.9 1.2 International income taxes - net (0.4) (1.2) (1.2) Global Intangible Low Taxed Income (GILTI) 0.7 0.7 0.8 Foreign Derived Intangible Income (FDII) (2.3) (3.1) (1.8) U.S. research and development credit (1.0) (0.7) (1.0) Reserves for tax contingencies — 0.6 0.5 Employee share-based payments (0.2) (0.6) (0.5) All other - net 0.2 0.2 0.7 Effective worldwide tax rate 9.6 % 17.8 % 19.7 % The effective tax rate for 2022, 2021, and 2020 were 9.6 percent , 17.8 percent, and 19.7 percent, respectively. These reflec t a decrease of 8.2 percen tage points from 2021 to 2022 and a decrease of 1.9 percentage points from 2020 to 2021. The primary factor that decreased the effective tax rate for 2022 was the tax efficient structure associated with the gain on the split-off of the Food Safety business. The primary factors that decreased the effective tax rate for 2021 in comparison to 2020 were geographical income mix and favorable adjustments in 2021 related to impacts of U.S. international tax provisions. The 2017 Tax Cuts and Jobs Act (TCJA) involved a transition tax that is payable over eight years beginning in 2018. As of December 31, 2022 and December 31, 2021, 3M reflecte d $380 million and $508 million, respectively, in long term income taxes payable. As of December 31, 2022 and December 31, 2021, 3M reflecte d $126 million and $68 million, respectively, payable within one year associated with the transition tax. The IRS has completed its field examination of the Company’s U.S. federal income tax returns through 2018, but the years 2005 through 2017 have not closed as the Company is in the process of resolving issues identified during those examinations. In addition to the U.S. federal examination, there is also audit activity in several U.S. state and foreign jurisdictions where the Company is subject to ongoing tax examinations and governmental assessments, which could be impacted by evolving political environments in those jurisdictions. As of December 31, 2022, no taxing authority proposed significant adjustments to the Company’s tax positions for which the Company is not adequately reserved. It is reasonably possible that the amount of unrecognized tax benefits could significantly change within the next 12 months. The Company has ongoing federal, state and international income tax audits in various jurisdictions and evaluates uncertain tax positions that may be challenged by local tax authorities and not fully sustained. These uncertain tax positions are reviewed on an ongoing basis and adjusted in light of facts and circumstances including progression of tax audits, developments in case law and closing statutes of limitation. At this time, the Company is not able to estimate the range by which these potential events could impact 3M’s unrecognized tax benefits within the next 12 months. The Company recognizes the amount of tax benefit that has a greater than 50 percent likelihood of being ultimately realized upon settlement. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (UTB) is as follows: Federal, State and Foreign Tax (Millions) 2022 2021 2020 Gross UTB Balance at January 1 $ 1,071 $ 1,113 $ 1,167 Additions based on tax positions related to the current year 115 91 74 Additions for tax positions of prior years 36 22 106 Additions related to recent acquisitions — — — Reductions for tax positions of prior years (138) (60) (173) Settlements (118) (57) (8) Reductions due to lapse of applicable statute of limitations (39) (38) (53) Gross UTB Balance at December 31 $ 927 $ 1,071 $ 1,113 Net UTB that would impact the effective tax rate at December 31 $ 965 $ 1,112 $ 1,145 The total amount of UTB, if recognized, would affect the effective tax rate by $965 million as of December 31, 2022, $1,112 million as of December 31, 2021, and $1,145 million as of December 31, 2020. The ending net UTB results from adjusting the gross balance for deferred items, interest and penalties, and deductible taxes. The net UTB is included as components of Other Assets, Accrued Income Taxes, and Other Liabilities within the Consolidated Balance Sheet. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in tax expense. The Company recognized in the consolidated statement of income on a gross basis approximately $1 million of expense, $14 million of expense, and $21 million of expense in 2022, 2021, and 2020, respectively. The amount of interest and penalties recognized may be an expense or benefit due to new or remeasured unrecognized tax benefit accruals. At December 31, 2022, and December 31, 2021, accrued interest and penalties in the consolidated balance sheet on a gross basis were $116 million and $140 million, respectively. Included in these interest and penalty amounts are interest and penalties related to tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. As a result of certain employment commitments and capital investments made by 3M, income from certain foreign operations in the following countries is subject to reduced tax rates or, in some cases, is exempt from tax for years through the following: China (2022), Switzerland (2026), Brazil (2029) and Singapore (2032). The income tax benefits attributable to the tax status of these subsidiaries are estimated to be $170 million (30 cents per diluted share) in 2022, $204 million (36 cents per diluted share) in 2021, and $163 million (28 cents per diluted share) in 2020. As of December 31, 2022, the Company has approximately $16.0 billion of undistributed earnings in its foreign subsidiaries. Approximately $8.0 billion of these earnings are no longer considered permanently reinvested. The incremental tax cost to repatriate these earnings to the US is immaterial. The Company has not provided deferred taxes on approximately $8.0 billion of undistributed earnings from non-U.S. subsidiaries as of December 31, 2022 which are indefinitely reinvested in operations. Because of the multiple avenues by which to repatriate the earnings to minimize tax cost, and because a large portion of these earnings are not liquid, it is not practical to determine the income tax liability that would be payable if such earnings were not reinvested indefinitely. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2022 | |
Debt Securities, Available-for-Sale [Abstract] | |
Marketable Securities | Marketable Securities The Company invests in asset-backed securities, certificates of deposit/time deposits, commercial paper, and other securities. The following is a summary of amounts recorded on the Consolidated Balance Sheet for marketable securities (current and non-current). (Millions) 2022 2021 Commercial paper $ 213 $ 109 Certificates of deposit/time deposits 21 14 U.S. treasury securities — 75 U.S. municipal securities 4 3 Current marketable securities 238 201 U.S. municipal securities 23 27 Non-current marketable securities 23 27 Total marketable securities $ 261 $ 228 At December 31, 2022 and 2021, gross unrealized, gross realized, and net realized gains and/or losses (pre-tax) were not material. The balances at December 31, 2022 for marketable securities by contractual maturity are shown below. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. (Millions) 2022 Due in one year or less $ 238 Due after one year through five years 15 Due after five years through ten years 8 Total marketable securities $ 261 |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Borrowings | Long-Term Debt and Short-Term Borrowings The following debt tables reflect effective interest rates, which include the impact of interest rate swaps, as of December 31, 2022. If the debt was issued on a combined basis, the debt has been separated to show the impact of the fixed versus floating effective interest rates. Carrying value includes the impact of debt issuance costs and fair value hedging activity. Long-term debt and short-term borrowings as of December 31 consisted of the following: Long-Term Debt (Millions) Currency/ Fixed vs. Floating Effective Interest Rate Final Maturity Date Carrying Value Description / 2022 Principal Amount 2022 2021 Medium-term note (repaid in 2022) EUR Fixed — % 2022 — 567 Medium-term note (repaid in 2022) USD Fixed — % 2022 — 599 Registered note ($500 million) USD Fixed 1.86 % 2023 500 499 Medium-term note ($650 million) USD Fixed 2.26 % 2023 650 649 Medium-term note (€600 million) EUR Fixed 1.14 % 2023 639 679 Medium-term note ($300 million) USD Fixed 3.30 % 2024 300 299 Medium-term note ($500 million) USD Fixed 2.98 % 2024 501 501 Medium-term note ($300 million) USD Floating 4.81 % 2024 300 300 Registered note ($750 million) USD Fixed 2.12 % 2025 747 746 Registered note ($500 million) USD Fixed 2.67 % 2025 499 498 Medium-term note ($550 million) USD Fixed 3.04 % 2025 549 548 Medium-term note ($650 million) USD Fixed 2.37 % 2026 646 645 Medium-term note (€750 million) EUR Fixed 1.65 % 2026 792 842 Floating rate note ($19 million) USD Floating 4.37 % 2027 18 19 Medium-term note ($850 million) USD Fixed 2.95 % 2027 845 844 30-year debenture ($220 million) USD Fixed 6.44 % 2028 223 224 Floating rate note ($150 million) USD Floating 6.49 % 2028 129 147 Floating rate note ($150 million) USD Floating 6.44 % 2028 129 147 Floating rate note ($250 million) USD Floating 6.69 % 2028 211 240 Floating rate note ($150 million) USD Floating 6.64 % 2028 127 144 Floating rate note ($100 million) USD Floating 6.73 % 2028 84 96 Medium-term note ($600 million) USD Fixed 3.62 % 2028 598 598 Medium-term note ($800 million) USD Fixed 3.38 % 2029 797 797 Registered note ($1 billion) USD Fixed 2.50 % 2029 989 988 Registered note ($600 million) USD Fixed 3.09 % 2030 596 596 Medium-term note (€500 million) EUR Fixed 1.90 % 2030 526 560 Medium-term note (€500 million) EUR Fixed 1.54 % 2031 530 563 30-year bond ($555 million) USD Fixed 5.73 % 2037 552 551 Floating rate note ($52 million) USD Floating 4.16 % 2040 52 52 Floating rate note ($96 million) USD Floating 4.16 % 2041 96 96 Medium-term note ($325 million) USD Fixed 4.05 % 2044 315 315 Floating rate note ($54 million) USD Floating 4.16 % 2044 53 53 Medium-term note ($500 million) USD Fixed 3.37 % 2046 478 477 Medium-term note ($500 million) USD Fixed 3.68 % 2047 492 492 Medium-term note ($650 million) USD Fixed 4.07 % 2048 638 638 Medium-term note ($500 million) USD Fixed 3.78 % 2048 504 505 Registered note ($500 million) USD Fixed 3.37 % 2049 486 485 Registered note ($350 million) USD Fixed 3.72 % 2050 346 346 Other borrowings Various 0.09 % 2023-2029 2 2 Total long-term debt 15,939 17,347 Less: current portion of long-term debt 1,938 1,291 Long-term debt (excluding current portion) $ 14,001 $ 16,056 Post-Swap Borrowing (Long-Term Debt, Including Current Portion) 2022 2021 (Millions) Carrying Value Effective Interest Rate Carrying Value Effective Interest Rate Fixed-rate debt $ 14,738 2.93 % $ 16,053 2.80 % Floating-rate debt 1,201 5.70 % 1,294 1.43 % Total long-term debt, including current portion $ 15,939 $ 17,347 Short-Term Borrowings and Current Portion of Long-Term Debt Effective Interest Rate Carrying Value (Millions) 2022 2021 Current portion of long-term debt 1.93 % $ 1,938 $ 1,291 Other borrowings — % — 16 Total short-term borrowings and current portion of long-term debt $ 1,938 $ 1,307 Other short-term borrowings primarily consisted of bank borrowings by international subsidiaries. Future Maturities of Long-term Debt Maturities of long-term debt in the table below reflect the impact of put provisions associated with certain debt instruments and are net of the unamortized debt issue costs such that total maturities equal the carrying value of long-term debt as of December 31, 2022. The maturities of long-term debt for the periods subsequent to December 31, 2022 are as follows (in millions): 2023 2024 2025 2026 2027 After 2027 Total $ 1,938 $ 1,100 $ 1,865 $ 1,438 $ 845 $ 8,753 $ 15,939 As a result of put provisions associated with certain debt instruments, long-term debt payments due in 2023 include floating rate notes totaling $149 million (classified as current portion of long-term debt). Credit Facilities 3M has an amended and restated $3.0 billion five In December 2021 and June 2022, 3M entered into debt financing facilities providing commitments for term loans and potential bridge financing aggregating $1.0 billion related to the Food Safety Division split-off transaction and combination with Neogen (discussed in Note 3). The debt commitments also included a $150 million revolving credit facility for the Food Safety business. Coincident with completion of the September 2022 split-off, the Food Safety business term loan borrowings funded the cash payment to 3M discussed in Note 3. The bridge financing component of these facilities was terminated early and not utilized. Obligations under the commitments (including the $150 million revolving credit facility) transferred with the Food Safety business and became those of Neogen. Other Credit Facilities The Company also had an additional $318 million in stand-alone letters of credit and bank guarantees issued and outstanding at December 31, 2022. These instruments are utilized in connection with normal business activities. Long-Term Debt Issuances and Fixed-to-Floating Interest Rate Swaps The principal amounts, interest rates and maturity dates of individual long-term debt issuances can be found in the long-term debt table found at the beginning of this note. During the second and third quarters of 2021, 3M entered into interest rate swaps with an aggregate notional amount of $800 million. These swaps converted $500 million and $300 million of 3M’s $1 billion and $650 million principal amount of fixed rate notes due 2049 and 2050, respectively, into floating rate debt for the portion of their terms through mid-2028 with an interest rate based on a three-month LIBOR index. In March 2020, 3M issued $1.75 billion aggregate principal amount of fixed rate registered notes. These were comprised of $500 million of 5-year notes due 2025 with a coupon rate of 2.65%, $600 million of 10-year notes due 2030 with a coupon rate of 3.05%, and $650 million of 30-year notes due 2050 with a coupon rate of 3.70%. Long-Term Debt Maturities and Extinguishments In February 2022, 3M repaid 500 million euros aggregate principal amount of fixed-rate medium-term notes that matured. In June 2022, 3M repaid $600 million aggregate principal amount of fixed-rate medium-term notes that matured. In November 2021, 3M repaid 600 million euros aggregate principal amount of Eurobonds that matured. In March 2021, 3M, via a make-whole-call offer, redeemed $450 million principal amount of 2.75% notes due 2022. The Company recorded an early debt extinguishment pre-tax charge of approximately $11 million within interest expense. This charge reflected the differential between the carrying value and the amount paid to reacquire the notes and related expenses. In December 2020, 3M, via make-whole-call offers, repaid $1 billion aggregate principal amount of its outstanding notes. This included $400 million aggregate principal amount of 3.00% notes and $600 million aggregate principal amount of 1.625% notes, both of which were due to mature in 2021. The Company recorded an early debt extinguishment pre-tax charge of approximately $10 million within interest expense. This charge reflected the differential between the carrying value and the amount paid to reacquire the notes and related expenses. In May 2020, 3M repaid $650 million euros aggregate principal amount of floating-rate medium-term notes that matured. In August 2020, 3M repaid $500 million aggregate principal amount of floating-rate medium-term notes that matured. Floating Rate Notes At various times, 3M has issued floating rate notes containing put provisions. 3M would be required to repurchase these securities at various prices ranging from 99 percent to 100 percent of par value according to the reduction schedules for each security. In December 2004, 3M issued a forty-year $60 million floating rate note, with a rate based on a floating LIBOR index (noting contracts will be modified to apply a new reference rate where applicable). Under the terms of this floating rate note due in 2044, holders have an annual put feature at 100 percent of par value from 2014 and every anniversary thereafter until final maturity. Under the terms of the floating rate notes due in 2027, 2040 and 2041, holders have put options that commence ten years from the date of issuance and each third anniversary thereafter until final maturity at prices ranging from 99 percent to 100 percent of par value. For the periods presented, 3M was required to repurchase an immaterial amount of principal on the aforementioned floating rate notes. |
Pension and Postretirement Bene
Pension and Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefit Plans | 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 75 defined benefit plans in 28 countries. Pension benefits associated with these plans generally are based on each participant’s years of service, compensation, and age at retirement or termination. The primary U.S. defined-benefit pension plan was closed to new participants effective January 1, 2009. The Company also provides certain postretirement health care and life insurance benefits for its U.S. employees who reach retirement age while employed by the Company and were employed by the Company prior to January 1, 2016. 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 Company has made deposits for its defined benefit plans with independent trustees. 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. The Company also sponsors employee savings plans under Section 401(k) of the Internal Revenue Code. These plans are offered to substantially all regular U.S. employees. For eligible employees hired prior to January 1, 2009, employee 401(k) contributions of up to 5% of eligible compensation matched in cash at rates of 45% or 60%, depending on the plan in which the employee participates. Employees hired on or after January 1, 2009, receive a cash match of 100% for employee 401(k) contributions of up to 5% of eligible compensation and receive an employer retirement income account cash contribution of 3% of the participant’s total eligible compensation. All contributions are invested in a number of investment funds pursuant to the employees’ elections. Employer contributions to the U.S. defined contribution plans were $241 million, $231 million and $201 million for 2022, 2021 and 2020, respectively. 3M subsidiaries in various international countries also participate in defined contribution plans. Employer contributions to the international defined contribution plans were $108 million, $117 million and $103 million for 2022, 2021 and 2020, respectively. In the second quarter of 2020, as a result of the divestiture of the drug delivery business, the Company recognized a curtailment in its United Kingdom Pension Plan. The resulting re-measurement of the pension plan funded status reduced long-term prepaid pension and post retirement assets (located within “other assets” of the Company’s balance sheet) by approximately $80 million, which was offset within accumulated other comprehensive income (located within the equity section of the Company’s balance sheet). The expense impact of this re-measurement was immaterial for the second quarter of 2020 and subsequent periods. The following tables include a reconciliation of the beginning and ending balances of the benefit obligation and the fair value of plan assets as well as a summary of the related amounts recognized in the Company’s consolidated balance sheet as of December 31 of the respective years. 3M also has certain non-qualified unfunded pension and postretirement benefit plans, inclusive of plans related to supplement/excess benefits for employees impacted by particular relocations and other matters, that individually and in the aggregate are not significant and which are not included in the tables that follow. The obligations for these plans are included within other liabilities in the Company’s consolidated balance sheet and aggregated to less than $51 million as of December 31, 2022 and 2021. Qualified and Non-Pension Benefits Postretirement Benefits United States International (Millions) 2022 2021 2022 2021 2022 2021 Change in benefit obligation Benefit obligation at beginning of year $ 18,104 $ 19,376 $ 7,942 $ 8,770 $ 2,281 $ 2,397 Acquisitions/Transfers — — — — — — Service cost 256 286 128 164 42 53 Interest cost 417 360 125 98 52 43 Participant contributions — — 7 10 — — Foreign exchange rate changes — — (567) (325) 1 (4) Plan amendments — — 8 1 — — Actuarial (gain) loss (3,777) (588) (2,240) (433) (458) (89) Benefit payments (1,495) (1,330) (266) (298) (115) (113) Settlements, curtailments, special termination benefits and other — — (65) (45) (6) (6) Benefit obligation at end of year $ 13,505 $ 18,104 $ 5,072 $ 7,942 $ 1,797 $ 2,281 Change in plan assets Fair value of plan assets at beginning of year 16,953 17,127 8,016 8,194 1,353 1,376 Acquisitions/Transfers — — — — — — Actual return on plan assets (2,875) 1,079 (1,286) 321 (218) 93 Company contributions 65 77 90 100 3 3 Participant contributions — — 7 10 — — Foreign exchange rate changes — — (602) (265) — — Benefit payments (1,495) (1,330) (266) (298) (115) (113) Settlements, curtailments, special termination benefits and other — — (68) (46) (6) (6) Fair value of plan assets at end of year $ 12,648 $ 16,953 $ 5,891 $ 8,016 $ 1,017 $ 1,353 Funded status at end of year $ (857) $ (1,151) $ 819 $ 74 $ (780) $ (928) Amounts recognized in the Consolidated Balance Sheet as of December 31, (Millions) Qualified and Non-qualified Pension Benefits Postretirement Benefits United States International 2022 2021 2022 2021 2022 2021 Non-current assets $ — $ — $ 1,225 $ 943 $ — $ — Accrued benefit cost Current liabilities (52) (59) (14) (14) (11) (5) Non-current liabilities (805) (1,092) (392) (855) (769) (923) Ending balance $ (857) $ (1,151) $ 819 $ 74 $ (780) $ (928) Amounts recognized in accumulated other comprehensive income as of December 31, (Millions) Qualified and Non-qualified Pension Benefits Postretirement Benefits United States International 2022 2021 2022 2021 2022 2021 Net transition obligation (asset) $ — $ — $ 4 $ 6 $ — $ — Net actuarial loss (gain) 4,616 4,991 157 960 332 538 Prior service cost (credit) (56) (80) 10 3 (166) (197) Ending balance $ 4,560 $ 4,911 $ 171 $ 969 $ 166 $ 341 The balance of amounts recognized for international plans in accumulated other comprehensive income as of December 31 in the preceding table are presented based on the foreign currency exchange rate on that date. The pension accumulated benefit obligation represents the actuarial present value of benefits based on employee service and compensation as of the measurement date and does not include an assumption about future compensation levels. The following table summarizes the total accumulated benefit obligations, the accumulated benefit obligations and fair value of plan assets for defined benefit pension plans with accumulated benefit obligations in excess of plan assets, and the projected benefit obligation and fair value of plan assets for defined benefit pension plans with projected benefit obligation in excess of plan assets as of December 31: Qualified and Non-qualified Pension Plans United States International (Millions) 2022 2021 2022 2021 Accumulated benefit obligation $ 12,967 $ 17,305 $ 4,814 $ 7,484 Plans with accumulated benefit obligation in excess of plan assets Accumulated benefit obligation $ 402 $ 514 $ 775 $ 2,843 Fair value of plan assets — — 427 2,194 Plans with projected benefit obligation in excess of plan assets Projected benefit obligation $ 13,505 $ 18,104 $ 851 $ 3,204 Fair value of plan assets 12,648 16,953 442 2,335 Components of net periodic cost and other amounts recognized in other comprehensive income The service cost component of defined benefit net periodic benefit cost is recorded in cost of sales, selling, general and administrative expenses, and research, development and related expenses. As discussed in Note 6, the other components of net periodic benefit cost are reflected in other expense (income), net. Components of net periodic benefit cost and other supplemental information for the years ended December 31 follow: Qualified and Non-qualified Pension Benefits Postretirement Benefits United States International (Millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Net periodic benefit cost (benefit) Operating expense Service cost $ 256 $ 286 $ 261 $ 128 $ 164 $ 152 $ 42 $ 53 $ 43 Non-operating expense Interest cost 417 360 499 125 98 117 52 43 62 Expected return on plan assets (963) (1,055) (1,046) (271) (326) (306) (72) (78) (80) Amortization of transition asset — — — 2 2 2 — — — Amortization of prior service benefit (24) (24) (24) — (3) (5) (31) (33) (33) Amortization of net actuarial loss 424 529 491 29 104 121 40 56 47 Settlements, curtailments, special termination benefits and other 12 24 16 10 3 1 2 3 3 Total non-operating expense (benefit) (134) (166) (64) (105) (122) (70) (9) (9) (1) Total net periodic benefit cost (benefit) $ 122 $ 120 $ 197 $ 23 $ 42 $ 82 $ 33 $ 44 $ 42 Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss Amortization of transition asset $ — $ — $ — $ (2) $ (2) $ (2) $ — $ — $ — Prior service cost (benefit) — — — 8 1 — — — — Amortization of prior service benefit 24 24 24 — 3 5 31 33 33 Net actuarial (gain) loss 61 (614) 760 (689) (434) (358) (166) (104) 108 Amortization of net actuarial loss (424) (529) (491) (29) (104) (121) (40) (56) (47) Foreign currency — — — (82) (71) 79 2 (1) (7) Settlements, curtailments, special termination benefits and other (12) (23) (16) (4) (1) (1) (2) (3) (3) Total recognized in other comprehensive (income) loss $ (351) $ (1,142) $ 277 $ (798) $ (608) $ (398) $ (175) $ (131) $ 84 Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss $ (229) $ (1,022) $ 474 $ (775) $ (566) $ (316) $ (142) $ (87) $ 126 Weighted-average assumptions used to determine benefit obligations as of December 31 Qualified and Non-qualified Pension Benefits Postretirement Benefits United States International 2022 2021 2020 2022 2021 2020 2022 2021 2020 Discount rate 5.18 % 2.89 % 2.55 % 4.39 % 1.80 % 1.38 % 5.25 % 2.88 % 2.50 % Compensation rate increase 3.37 % 3.21 % 3.21 % 2.86 % 2.86 % 2.88 % N/A N/A N/A Weighted-average assumptions used to determine net cost for years ended December 31 Qualified and Non-qualified Pension Benefits Postretirement Benefits United States International 2022 2021 2020 2022 2021 2020 2022 2021 2020 Discount rate - service cost 3.10 % 2.81 % 3.41 % 1.64 % 1.23 % 1.61 % 3.11 % 3.21 % 3.45 % Discount rate - interest cost 2.38 % 1.92 % 2.87 % 1.62 % 1.13 % 1.61 % 2.59 % 2.20 % 3.00 % Expected return on assets 6.00 % 6.50 % 6.75 % 3.86 % 4.36 % 4.70 % 5.77 % 6.15 % 6.32 % Compensation rate increase 3.21 % 3.21 % 3.21 % 2.86 % 2.88 % 2.88 % N/A N/A N/A The Company provides eligible retirees in the U.S. postretirement health care benefit plans to a savings account benefits-based plan. The contributions provided by the Company to the health savings accounts increase 3 percent per year for employees who retired prior to January 1, 2016 and increase 1.5% for employees who retire on or after January 1, 2016. Therefore, the Company no longer has material exposure to health care cost inflation. The Company determines the discount rate used to measure plan liabilities as of the December 31 measurement date for the pension and postretirement benefit plans, which is also the date used for the related annual measurement assumptions. The discount rate reflects the current rate at which the associated liabilities could be effectively settled at the end of the year. The Company sets its rate to reflect the yield of a portfolio of high quality, fixed-income debt instruments that would produce cash flows sufficient in timing and amount to settle projected future benefits. Using this methodology, the Company determined a discount rate of 5.18% for the U.S. pension plans and 5.25% for the postretirement benefit plans as of December 31, 2022, which is an increase of 2.29 percentage points and an increase 2.37 percentage points, respectively, from the rates used as of December 31, 2021. An increase in the discount rate decreases the Projected Benefit Obligation (PBO), the increase in the discount rate as of December 31, 2022 resulted in an approximately $4.5 billion lower benefit obligation for the U.S. pension and postretirement plans. The Company measures service cost and interest cost separately using the spot yield curve approach applied to each corresponding obligation. Service costs are determined based on duration-specific spot rates applied to the service cost cash flows. The interest cost calculation is determined by applying duration-specific spot rates to the year-by-year projected benefit payments. The spot yield curve approach does not affect the measurement of the total benefit obligations as the change in service and interest costs offset in the actuarial gains and losses recorded in other comprehensive income. For the primary U.S. qualified pension plan, the Company’s assumption for the expected return on plan assets was 6.00% in 2022. Projected returns are based primarily on broad, publicly traded equity and fixed-income indices and forward-looking estimates of active portfolio and investment management. As of December 31, 2022, the Company’s 2023 expected long-term rate of return on U.S. plan assets is 7.50%. The expected return assumption is based on the strategic asset allocation of the plan, long term capital market return expectations and expected performance from active investment management. The 2022 expected long-term rate of return is based on an asset allocation assumption of 10% global equities, 14% private equities, 60% fixed-income securities, and 16% absolute return investments independent of traditional performance benchmarks, along with positive returns from active investment management. The actual net rate of return on plan assets in 2022 was -17.4%. In 2021 the plan earned a rate of return of 6.7% and in 2020 earned a return of 13.6%. The average annual actual return on the plan assets over the past 10 and 25 years has been 5.2% and 7.1%, respectively. Return on assets assumptions for international pension and other post-retirement benefit plans are calculated on a plan-by-plan basis using plan asset allocations and expected long-term rate of return assumptions. In 2021 the Company updated the mortality improvement scales to the Society of Actuaries Scale MP- 2021. The December 31, 2021 update resulted in an immaterial increase to the U.S. pension PBO and U.S. accumulated postretirement benefit obligations. The Society of Actuaries did not release an update to the Scale MP-2021 in 2022. During 2022, the Company contributed $155 million to its U.S. and international pension plans and $3 million to its postretirement plans. During 2021, the Company contributed $177 million to its U.S. and international pension plans and $3 million to its postretirement plans. In 2023, the Company expects to contribute an amount in the range of $100 million to $200 million of cash to its U.S. and international retirement plans. The Company does not have a required minimum cash pension contribution obligation for its U.S. plans in 2023. Future contributions will depend on market conditions, interest rates and other factors. Future Pension and Postretirement Benefit Payments The following table provides the estimated pension and postretirement benefit payments that are payable from the plans to participants. Qualified and Non-qualified Pension Benefits Postretirement Benefits (Millions) United States International 2023 Benefit Payments $ 1,057 $ 262 $ 142 2024 Benefit Payments 1,061 269 145 2025 Benefit Payments 1,065 284 148 2026 Benefit Payments 1,061 295 150 2027 Benefit Payments 1,059 307 154 Next five years 5,155 1,614 726 Plan Asset Management 3M’s investment strategy for its pension and postretirement plans is to manage the funds on a going-concern basis. The primary goal of the trust funds is to meet the obligations as required. The secondary goal is to earn the highest rate of return possible, without jeopardizing its primary goal, and without subjecting the Company to an undue amount of contribution risk. Fund returns are used to help finance present and future obligations to the extent possible within actuarially determined funding limits and tax-determined asset limits, thus reducing the potential need for additional contributions from 3M. The investment strategy has used long duration cash bonds and derivative instruments to offset a significant portion of the interest rate sensitivity of U.S. pension liabilities. Normally, 3M does not buy or sell any of its own securities as a direct investment for its pension and other postretirement benefit funds. However, due to external investment management of the funds, the plans may indirectly buy, sell or hold 3M securities. The aggregate amount of 3M securities are not considered to be material relative to the aggregate fund percentages. The discussion that follows references the fair value measurements of certain assets in terms of levels 1, 2 and 3. See Note 15 for descriptions of these levels. While the company believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. U.S. Pension Plans and Postretirement Benefit Plan Assets In order to achieve the investment objectives in the U.S. pension plans and U.S. postretirement benefit plans, the investment policies include a target strategic asset allocation. The investment policies allow some tolerance around the target in recognition that market fluctuations and illiquidity of some investments may cause the allocation to a specific asset class to vary from the target allocation, potentially for long periods of time. Acceptable ranges have been designed to allow for deviation from strategic targets and to allow for the opportunity for tactical over- and under-weights. The portfolios will normally be rebalanced when the quarter-end asset allocation deviates from acceptable ranges. The allocation is reviewed regularly by the named fiduciary of the plans. Approximately 72% of the postretirement benefit plan assets are in a 401(h) account. The 401(h) account assets are in the same trust as the primary U.S. pension plan and invested with the same investment objectives as the primary U.S. pension plan. The fair values of the assets held by the U.S. pension plans by asset class are as follows: Fair Value Measurements Using Inputs Considered as Fair Value at December 31, Level 1 Level 2 Level 3 Asset Class (Millions) 2022 2021 2022 2021 2022 2021 2022 2021 Equities U.S. equities $ 501 $ 1,875 $ — $ — $ — $ — $ 501 $ 1,875 Non-U.S. equities 370 1,465 — — — — 370 1,465 Index and long/short equity funds* 271 404 Total Equities 871 3,340 — — — — 1,142 3,744 Fixed Income U.S. government securities 1,344 1,417 29 716 — — 1,373 2,133 Non-U.S. government securities — — 70 89 — — 70 89 Preferred and convertible securities — — 44 54 — — 44 54 U.S. corporate bonds — 11 4,789 4,620 — — 4,789 4,631 Non-U.S. corporate bonds — — 871 883 — — 871 883 Derivative instruments 10 11 — 6 — — 10 17 Other* 91 132 Total Fixed Income 1,354 1,439 5,803 6,368 — — 7,248 7,939 Private Equity Growth equity — 58 — — — — — 58 Partnership investments* 1,700 2,003 Total Private Equity — 58 — — — — 1,700 2,061 Absolute Return Fixed income and other 1 1 85 166 — — 86 167 Hedge fund/fund of funds* 1,297 1,943 Partnership investments* 497 617 Total Absolute Return 1 1 85 166 — — 1,880 2,727 Cash and Cash Equivalents Cash and cash equivalents 8 11 22 9 — — 30 20 Repurchase agreements and derivative margin activity — — (1) — — — (1) — Cash and cash equivalents, valued at net asset value* 789 678 Total Cash and Cash Equivalents 8 11 21 9 — — 818 698 Total $ 2,234 $ 4,849 $ 5,909 $ 6,543 $ — $ — $ 12,788 $ 17,169 Other items to reconcile to fair value of plan assets (140) (216) Fair value of plan assets $ 12,648 $ 16,953 * In accordance with ASC 820-10, certain investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities then divided by the number of units outstanding and is determined by the investment manager or custodian of the fund. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets. The fair values of the assets held by the postretirement benefit plans by asset class are as follows: Fair Value Measurements Using Inputs Considered as Fair Value at December 31, Level 1 Level 2 Level 3 Asset Class (Millions) 2022 2021 2022 2021 2022 2021 2022 2021 Equities U.S. equities $ 145 $ 292 $ — $ — $ — $ — $ 145 $ 292 Non-U.S. equities 23 80 — — — — 23 80 Index and long/short equity funds* 16 28 Total Equities 168 372 — — — — 184 400 Fixed Income U.S. government securities 96 109 73 180 — — 169 289 Non-U.S. government securities — — 5 7 — — 5 7 U.S. corporate bonds — 1 322 291 — — 322 292 Non-U.S. corporate bonds — — 61 59 — — 61 59 Other* 5 7 Total Fixed Income 96 110 461 537 — — 562 654 Private Equity Growth equity — 3 — — — — — 3 Partnership investments* 99 107 Total Private Equity — 3 — — — — 99 110 Absolute Return Fixed income and other — — 5 9 — — 5 9 Hedge fund/fund of funds* 76 102 Partnership investments* 29 32 Total Absolute Return — — 5 9 — — 110 143 Cash and Cash Equivalents Cash and cash equivalents 21 20 1 — — — 22 20 Cash and cash equivalents, valued at net asset value* 46 36 Total Cash and Cash Equivalents 21 20 1 — — — 68 56 Total $ 285 $ 505 $ 467 $ 546 $ — $ — $ 1,023 $ 1,363 Other items to reconcile to fair value of plan assets (6) (10) Fair value of plan assets $ 1,017 $ 1,353 *In accordance with ASC 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities then divided by the number of units outstanding and is determined by the investment manager or custodian of the fund. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets. Publicly traded equities are valued at the closing price reported in the active market in which the individual securities are traded. Fixed income includes derivative instruments such as credit default swaps, interest rate swaps and futures contracts. Corporate debt includes bonds and notes, asset backed securities, collateralized mortgage obligations and private placements. Swaps and derivative instruments are valued by the custodian using closing market swap curves and market derived inputs. U.S. government and government agency bonds and notes are valued at the closing price reported in the active market in which the individual security is traded. Corporate bonds and notes, asset backed securities and collateralized mortgage obligations are valued at either the yields currently available on comparable securities of issuers with similar credit ratings or valued under a discounted cash flow approach that utilizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable such as credit and liquidity risks. Private placements are valued by the custodian using recognized pricing services and sources. The private equity portfolio is a diversified mix of derivative instruments, growth equity and partnership interests. Growth equity investments are valued at the closing price reported in the active market in which the individual securities are traded. Absolute return consists primarily of partnership interests in hedge funds, hedge fund of funds or other private fund vehicles. Corporate debt instruments are valued at either the yields currently available on comparable securities of issuers with similar credit ratings or valued under a discounted cash flow approach that utilizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable such as credit and liquidity risk ratings. Other items to reconcile to fair value of plan assets include, interest receivables, amounts due for securities sold, amounts payable for securities purchased and interest payable. There were no level 3 assets in the fair values of the U.S. pension and postretirement plans assets for the periods ended December 31, 2022 and 2021. International Pension Plans Assets Outside the U.S., pension plan assets are typically managed by decentralized fiduciary committees. The disclosure below of asset categories is presented in aggregate for over 70 defined benefit plans in over 25 countries; however, there is significant variation in asset allocation policy from country to country. Local regulations, local funding rules, and local financial and tax considerations are part of the funding and investment allocation process in each country. The Company provides standard funding and investment guidance to all international plans with more focused guidance to the larger plans. Each plan has its own strategic asset allocation. The asset allocations are reviewed periodically and rebalanced when necessary. The fair values of the assets held by the international pension plans by asset class are as follows: Fair Value Measurements Using Inputs Considered as Fair Value at December 31, Level 1 Level 2 Level 3 Asset Class (Millions) 2022 2021 2022 2021 2022 2021 2022 2021 Equities Growth equities $ 59 $ 315 $ 99 $ 181 $ — $ — $ 158 $ 496 Value equities 164 328 11 15 — — 175 343 Core equities 65 107 142 547 2 5 209 659 Equities, valued at net asset value* 1 2 Total Equities 288 750 252 743 2 5 543 1,500 Fixed Income Domestic government 73 73 1,060 1,039 3 4 1,136 1,116 Foreign government 29 22 327 458 — — 356 480 Corporate debt securities 32 32 2,155 2,389 1 10 2,188 2,431 Fixed income securities, valued at net asset value* 623 893 Total Fixed Income 134 127 3,542 3,886 4 14 4,303 4,920 Private Equity Real estate 2 2 50 58 2 5 54 65 Real estate, valued at net asset value* 119 163 Partnership investments* 265 226 Total Private Equity 2 2 50 58 2 5 438 454 Absolute Return Derivatives — — 1 20 — — 1 20 Insurance — — — — 438 504 438 504 Other 8 7 — — 1 6 9 13 Other, valued at net asset value* — — Hedge funds* 259 535 Total Absolute Return 8 7 1 20 439 510 707 1,072 Cash and Cash Equivalents Cash and cash equivalents 122 145 51 46 — — 173 191 Cash and cash equivalents, valued at net asset value* 2 1 Total Cash and Cash Equivalents 122 145 51 46 — — 175 192 Total $ 554 $ 1,031 $ 3,896 $ 4,753 $ 447 $ 534 $ 6,166 $ 8,138 Other items to reconcile to fair value of plan assets (275) (122) Fair value of plan assets $ 5,891 $ 8,016 *In accordance with ASC 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities then divided by the number of units outstanding and is determined by the investment manager or custodian of the fund. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets. Equities consist primarily of mandates in public equity securities managed to various public equity indices. Publicly traded equities are valued at the closing price reported in the active market in which the individual securities are traded. Fixed Income investments include domestic and foreign government, and corporate, (including mortgage backed and other debt) securities. Governments, corporate bonds and notes and mortgage backed securities are valued at the closing price reported if traded on an active market or at yields currently available on comparable securities of issuers with similar credit ratings or valued under a discounted cash flow approach that utilizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable such as credit and liquidity risks. Private equity funds consist of partnership interests in a variety of funds. Real estate consists of property funds and REITS (Real Estate Investment Trusts). REITS are valued at the closing price reported in the active market in which it is traded. Absolute return consists of private partnership interests in hedge funds, insurance contracts, derivative instruments, hedge fund of funds, and other alternative investments. Insurance consists of insurance contracts, which are valued using cash surrender values which is the amount the plan would receive if the contract was cashed out at year end. Derivative instruments consist of various swaps and bond futures that are used to help manage risks. Other items to reconcile to fair value of plan assets include the net of interest receivables, amounts due for securities sold, amounts payable for securities purchased and interest payable. The balances of and changes in the fair values of the international pension plans’ level 3 assets consist primarily of insurance contracts under the absolute return asset class. In 2022 the aggregate of net purchases and net unrealized gains and losses decreased this balance by $24 million and the change in currency exchange rates decreased this balance by $42 million for a net decrease of $66 million. In 2021 the aggregate net purchases and net unrealized gains decreased this balance by $7 million and the change in currency exchange rates decreased the balance by $44 million for a net decrease to this balance of $51 million. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company uses interest rate swaps, currency swaps, and forward and option contracts to manage risks generally associated with foreign exchange rate and interest rate 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 3M’s financial position and performance. Additional information with respect to derivatives is included elsewhere as follows: • Impact on other comprehensive income of nonderivative hedging and derivative instruments is included in Note 8. • Fair value of derivative instruments is included in Note 15. • Derivatives and/or hedging instruments associated with the Company’s long-term debt are also described in Note 12. Refer to the section below titled Statement of Income Location and Impact of Cash Flow and Fair Value Derivative Instruments and Derivatives Not Designated as Hedging Instruments for details on the location within the consolidated statements of income for amounts of gains and losses related to derivative instruments designated as cash flow or fair value hedges (along with similar information relative to the hedged items) and derivatives not designated as hedging instruments. Additional information relative to cash flow hedges, fair value hedges, net investment hedges and derivatives not designated as hedging instruments is included below as applicable. For derivative instruments that are designated and qualify as cash flow hedges, 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 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. 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. 3M may de-designate 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 included in accumulated other comprehensive income for de-designated hedges remains in accumulated other comprehensive income until the forecasted transaction occurs or becomes probable of not occurring. Changes in the value of derivative instruments after de-designation are recorded in earnings and are included in the Derivatives Not Designated as Hedging Instruments section below. The maximum length of time over which 3M hedges its exposure to the variability in future cash flows of the forecasted transactions is 36 months. Cash Flow Hedging — Interest Rate Contracts: The Company may use forward starting interest rate contracts and treasury rate lock contracts to hedge exposure to variability in cash flows from interest payments on forecasted debt issuances. In March 2020, the Company entered into treasury rate lock contracts with a notional amount of $500 million that were terminated concurrently with the March 2020 issuance of registered notes as discussed in Note 12. The termination resulted in an immaterial net loss within accumulated other comprehensive income that will be amortized for the respective lives of the debt. In periods prior to 2020, the 3M entered into other forward starting interest rate swaps designated as hedges against interest rate volatility associated with forecasted issuances of fixed rate debt. These included swaps terminated in 2019 concurrent with associated debt issuances. These 2019 terminations resulted in a net loss of $143 million within accumulated other comprehensive income that is being amortized over the respective lives of the debt. The amortization of gains and losses on forward starting interest rate swaps is included in the tables below as part of the gain/(loss) reclassified from accumulated other comprehensive income into income. As of December 31, 2022, the Company had a balance of $7 million associated with the after-tax net unrealized loss associated with cash flow hedging instruments recorded in accumulated other comprehensive income. This includes a remaining balance of $94 million (after-tax loss) related to the forward starting interest rate swap and treasury rate lock contracts, which will be amortized over the respective lives of the notes. Based on exchange rates as of December 31, 2022, of the total after-tax net unrealized balance as of December 31, 2022, 3M expects to reclassify approximately $68 million after-tax net unrealized gain over the next 12 months (with the impact offset by earnings/losses from underlying hedged items). The amount of pretax gain (loss) recognized in other comprehensive income related to derivative instruments designated as cash flow hedges is provided in the following table. Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Millions) 2022 2021 2020 Foreign currency forward/option contracts $ 159 $ 108 $ (111) Interest rate contracts — — (2) Total $ 159 $ 108 $ (113) For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivatives as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. Fair Value Hedging - Interest Rate Swaps: The Company manages interest expense using a mix of fixed and floating rate debt. To help manage borrowing costs, the Company may enter into interest rate swaps. Under these arrangements, the Company agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. The mark-to-market of these fair value hedges is recorded as gains or losses in interest expense and is offset by the gain or loss of the underlying debt instrument, which also is recorded in interest expense. In November 2013, 3M issued a Eurobond which was due in 2021 for a face amount of 600 million euros. Upon debt issuance, 3M completed a fixed-to-floating interest rate swap on a notional amount of 300 million euros as a fair value hedge of a portion of the fixed interest rate Eurobond obligation. This interest rate swap matured in conjunction with the repayment of the Eurobond in November 2021. In August 2015, 3M issued $1.5 billion aggregate principal amount of medium-term notes. Upon debt issuance, the Company entered into two interest rate swaps as fair value hedges of a portion of the fixed interest rate medium-term note obligation. The first converted a $450 million three-year fixed rate note that matured in August 2018 at which time the associated interest rate swap also matured, and the second converted $300 million of a five-year fixed rate note that matured in August 2020 at which time the associated interest rate swap also matured. In the fourth quarter of 2017, the Company entered into an interest rate swap as a fair value hedge with a notional amount of $200 million that converted the company’s fixed-rate medium-term note that matured in August 2020 at which time the associated interest rate swap also matured. In September 2018, the Company entered into an interest rate swap with a notional amount of $200 million that converted a portion of the Company’s $400 million aggregate principal amount of fixed rate medium-term notes due 2021 into a floating rate note with an interest rate based on a three-month LIBOR index as a hedge of its exposure to changes in fair value that are attributable to interest rate risk. The Company terminated this interest rate swap in conjunction with the early debt repayment in December 2020 of $400 million aggregate principal amount of fixed-rate medium notes further described in Note 12. During the second and third quarters of 2021, 3M entered into interest rate swaps with an aggregate notional amount of $800 million. These swaps converted $500 million and $300 million of 3M’s $1.0 billion and $650 million principal amount of fixed rate notes due 2049 and 2050, respectively, into floating rate debt for the portion of their terms through mid-2028 with an interest rate based on a three-month LIBOR index. 3M had a fixed-to-floating interest rate swap that was terminated in 2007 with respect to the Company's 30-year $220 million principal amount debenture due in 2028. As this debt is still outstanding, its carrying value includes the remaining basis adjustment from this discontinued fair value hedge. The following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for active fair value hedges, as well as remaining amounts for discontinued fair value hedges: (Millions) Carrying Value of the Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities Location on the Consolidated Balance Sheet 2022 2021 2022 2021 Long-term debt $ 903 $ 997 $ (98) $ (4) The Company may use non-derivative (foreign currency denominated debt) and derivative (foreign exchange forward contracts) instruments to hedge portions of the Company’s investment in foreign subsidiaries and manage foreign exchange risk. For instruments that are designated and qualify as hedges of net investments in foreign operations and that meet the effectiveness requirements, the net gains or losses attributable to changes in spot exchange rates are recorded in cumulative translation within other comprehensive income. The remainder of the change in value of such instruments is recorded in earnings. Recognition in earnings of amounts previously recorded in cumulative translation is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. To the extent foreign currency denominated debt is not designated in or is de-designated from a net investment hedge relationship, changes in value of that portion of foreign currency denominated debt due to exchange rate changes are recorded in earnings through their maturity date. 3M’s use of foreign exchange forward contracts designated in hedges of the Company’s net investment in foreign subsidiaries can vary by time period depending on when foreign currency denominated debt balances designated in such relationships are de-designated, matured, or are newly issued and designated. Additionally, variation can occur in connection with the extent of the Company’s desired foreign exchange risk coverage. At December 31, 2022, the total notional amount of foreign exchange forward contracts designated in net investment hedges was approximately 150 million euros, along with a principal amount of long-term debt instruments designated in net investment hedges totaling 2.4 billion euros. The maturity dates of these derivative and nonderivative instruments designated in net investment hedges range from 2023 to 2031. The amount of gain (loss) excluded from effectiveness testing recognized in income relative to instruments designated in net investment hedge relationships is not material. The amount of pretax gain (loss) recognized in other comprehensive income related to derivative and nonderivative instruments designated as net investment hedges are as follows. Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income (Millions) 2022 2021 2020 Foreign currency denominated debt $ 162 $ 296 $ (351) Foreign currency forward contracts 10 8 (1) Total $ 172 $ 304 $ (352) Derivatives Not Designated as Hedging Instruments: Derivatives not designated as hedging instruments include de-designated foreign currency forward and option contracts that formerly were designated in cash flow hedging relationships (as referenced in the Cash Flow Hedges section above). In addition, 3M enters into foreign currency contracts that are not designated in hedging relationships to offset, in part, the impacts of changes in value of various non-functional currency denominated items including certain intercompany financing balances. These derivative instruments are not designated in hedging relationships; therefore, fair value gains and losses on these contracts are recorded in earnings. The Company does not hold or issue derivative financial instruments for trading purposes. Statement of Income Location and Impact of Cash Flow and Fair Value Derivative Instruments and Derivatives Not Designated as Hedging Instruments The location in the consolidated statement of income and pre-tax amounts recognized in income related to derivative instruments designated in cash flow or fair value hedging relationships and for derivatives not designated as hedging instruments are as follows: Location and Amount of Gain (Loss) Recognized in Income Cost of sales Other expense (income), net (Millions) 2022 2021 2020 2022 2021 2020 Information regarding cash flow and fair value hedging relationships: Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of derivatives are recorded $ 19,232 $ 18,795 $ 16,605 $ 147 $ 165 $ 366 Gain or (loss) on cash flow hedging relationships: Foreign currency forward/option contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income 107 (38) 80 — — — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — — — (9) (9) (9) Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items — — — 94 16 4 Derivatives designated as hedging instruments — — — (94) (16) (4) Information regarding derivatives not designated as hedging instruments: Gain or (loss) on derivatives not designated as instruments: Foreign currency forward/option contracts (76) 5 2 45 (11) 43 Location, Fair Value, and Gross Notional Amounts of Derivative Instruments The following tables summarize the fair value of 3M’s derivative instruments, excluding nonderivative instruments used as hedging instruments, and their location in the consolidated balance sheet. Notional amounts below are presented at period end foreign exchange rates, except for certain interest rate swaps, which are presented using the inception date’s foreign exchange rate. Gross Notional Amount Assets Liabilities (Millions) Location Fair Value Amount Location Fair Value Amount 2022 2021 2022 2021 2022 2021 Derivatives designated as hedging instruments Foreign currency forward/option contracts $ 2,368 $ 1,768 Other current assets $ 89 $ 54 Other current liabilities $ 27 $ 19 Foreign currency forward/option contracts 835 800 Other assets 55 41 Other liabilities 9 1 Interest rate contracts 800 800 Other assets — — Other liabilities 102 9 Total derivatives designated as hedging instruments 144 95 138 29 Derivatives not designated as hedging instruments Foreign currency forward/option contracts 2,816 3,731 Other current assets 73 24 Other current liabilities 4 4 Total derivatives not designated as hedging instruments 73 24 4 4 Total derivative instruments $ 217 $ 119 $ 142 $ 33 Credit Risk and Offsetting of Assets and Liabilities of Derivative Instruments The Company is exposed to credit loss in the event of nonperformance by counterparties in interest rate swaps, currency swaps, and forward and option contracts. However, the Company’s risk is limited to the fair value of the instruments. The Company actively monitors its exposure to credit risk through the use of credit approvals and credit limits, and by selecting major international banks and financial institutions as counterparties. 3M enters into master netting arrangements with counterparties when possible to mitigate credit risk in derivative transactions. A master netting arrangement may allow each counterparty to net settle amounts owed between a 3M entity and the counterparty as a result of multiple, separate derivative transactions. The Company does not anticipate nonperformance by any of these counterparties. 3M has elected to present the fair value of derivative assets and liabilities within the Company’s consolidated balance sheet on a gross basis even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. However, the following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria in the event of default or termination as stipulated by the terms of netting arrangements with each of the counterparties. For each counterparty, if netted, the Company would offset the asset and liability balances of all derivatives at the end of the reporting period based on the 3M entity that is a party to the transactions. Derivatives not subject to master netting agreements are not eligible for net presentation. Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements Gross Amount of Eligible Offsetting Recognized Derivative Liabilities Cash Collateral Received Net Amount of Derivative Assets (Millions) 2022 2021 2022 2021 2022 2021 2022 2021 Derivatives subject to master netting agreements $ 217 $ 119 $ 40 $ 25 $ — $ — $ 177 $ 94 Derivatives not subject to master netting agreements — — — — Total $ 217 $ 119 $ 177 $ 94 Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements Gross Amount of Eligible Offsetting Recognized Derivative Assets Cash Collateral Received Net Amount of Derivative Liabilities (Millions) 2022 2021 2022 2021 2022 2021 2022 2021 Derivatives subject to master netting agreements $ 142 $ 33 $ 40 $ 25 $ — $ — $ 102 $ 8 Derivatives not subject to master netting agreements — — — — Total $ 142 $ 33 $ 102 $ 8 Currency Effects 3M estimates that year-on-year foreign currency transaction effects, including hedging impacts, increased pre-tax income by approximately $127 million in 2022, decreased pre-tax income by approximately $105 million in 2021, and decreased pre-tax income by approximately $21 million in 2020. These estimates include transaction gains and losses, including derivative instruments designed to reduce foreign currency exchange rate risks. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities that are Measured at Fair Value on a Recurring Basis: For 3M, assets and liabilities that are measured at fair value on a recurring basis primarily relate to available-for-sale marketable securities and certain derivative instruments. The information in the following paragraphs and tables primarily addresses matters relative to these financial assets and liabilities. Separately, there were no material fair value measurements with respect to nonfinancial assets or liabilities that are recognized or disclosed at fair value in the Company’s financial statements on a recurring basis for 2022 and 2021. 3M uses various valuation techniques, which are primarily based upon the market and income approaches, with respect to financial assets and liabilities. Following is a description of the valuation methodologies used for the respective financial assets and liabilities measured at fair value. Available-for-sale marketable securities — except certain U.S. municipal securities: Marketable securities, except certain U.S. municipal securities, are valued utilizing multiple sources. A weighted average price is used for these securities. Market prices are obtained for these securities from a variety of industry standard data providers, security master files from large financial institutions, and other third-party sources. These multiple prices are used as inputs into a distribution-curve-based algorithm to determine the daily fair value to be used. 3M classifies U.S. treasury securities as level 1, while all other marketable securities (excluding certain U.S. municipal securities) are classified as level 2. Marketable securities are discussed further in Note 11. Available-for-sale marketable securities —certain U.S. municipal securities only: 3M holds municipal securities with several cities in the United States as of December 31, 2022. Due to the nature of these securities, the valuation method references the carrying value of the corresponding finance lease obligation, and as such, will be classified as level 3 securities separately. Derivative instruments: The Company’s derivative assets and liabilities within the scope of ASC 815, Derivatives and Hedging , are required to be recorded at fair value. The Company’s derivatives that are recorded at fair value include foreign currency forward and option contracts, interest rate swaps, and net investment hedges where the hedging instrument is recorded at fair value. Net investment hedges that use foreign currency denominated debt to hedge 3M’s net investment are not impacted by the fair value measurement standard under ASC 820, as the debt used as the hedging instrument is marked to a value with respect to changes in spot foreign currency exchange rates and not with respect to other factors that may impact fair value. 3M has determined that foreign currency forwards, currency swaps, foreign currency options, interest rate swaps and cross-currency swaps will be considered level 2 measurements. 3M uses inputs other than quoted prices that are observable for the asset. These inputs include foreign currency exchange rates, volatilities, and interest rates. Derivative positions are primarily valued using standard calculations/models that use as their basis readily observable market parameters. Industry standard data providers are 3M’s primary source for forward and spot rate information for both interest rates and currency rates, with resulting valuations periodically validated through third-party or counterparty quotes and a net present value stream of cash flows model. The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis. Fair Value at Fair Value Measurements Using Inputs Considered as Level 1 Level 2 Level 3 Description (Millions) 2022 2021 2022 2021 2022 2021 2022 2021 Assets: Available-for-sale: Marketable securities: Commercial paper $ 213 $ 109 $ — $ — $ 213 $ 109 $ — $ — Certificates of deposit/time deposits 21 14 — — 21 14 — — U.S. treasury securities — 75 — 75 — — — — U.S. municipal securities 27 30 — — — — 27 30 Derivative instruments — assets: Foreign currency forward/option contracts 217 119 — — 217 119 — — Liabilities: Derivative instruments — liabilities: Foreign currency forward/option contracts 40 24 — — 40 24 — — Interest rate contracts 102 9 — — 102 9 — — The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis in the table above that used significant unobservable inputs (level 3). Marketable securities — certain U.S. municipal securities only (Millions) 2022 2021 2020 Beginning balance $ 30 $ 34 $ 46 Total gains or losses: Included in earnings — — — Included in other comprehensive income — — — Purchases and issuances — — 10 Sales and settlements (3) (4) (22) Transfers in and/or out of level 3 — — — Ending balance $ 27 $ 30 $ 34 Change in unrealized gains or losses for the period included in earnings for securities held at the end of the reporting period — — — Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis: Disclosures are required for certain assets and liabilities that are measured at fair value, but are recognized and disclosed at fair value on a nonrecurring basis in periods subsequent to initial recognition. For 3M, such measurements of fair value relate primarily to indefinite-lived and long-lived asset impairments, goodwill impairments, and adjustment in carrying value of equity securities for which the measurement alternative of cost less impairment plus or minus observable price changes is used. There were no material impairments of assets or adjustments to equity securities using the measurement alternative for 2022 and 2021. In September 2022, management committed to a plan to exit and dispose of net assets in Russia through an intended sale of related subsidiaries. As a result, 3M recorded a pre-tax charge of $109 million, primarily within selling, general and administrative expense related to recording this held-for-sale disposal group at the lower of its fair value less cost to sell or carrying amount. In determining the carrying amount, the balance of cumulative translation adjustment within accumulated other comprehensive loss that will be eliminated upon sale was included and contributed to the impairment charge. As of December 31, 2022 the amounts of major assets and liabilities of this held-for-sale disposal group primarily included approximately $50 million within other current liabilities that largely represented a reserve against the balance of cumulative translation adjustment. Additionally, in December 2022, 3M committed to a plan to exit per- and polyfluoroalkyl substance (PFAS) manufacturing by the end of 2025. As a result, 3M recorded a pre-tax charge of $0.8 billion in the fourth quarter of 2022, related to impairment of long-lived and indefinite-lived assets ($0.5 billion — primarily associated with property, plant, and equipment) and impairment of goodwill ($0.3 billion). These charges were reflected within selling, general and administrative expense and goodwill impairment expense, respectively. The plan affects each of the Electronics Materials Solutions Division and Advanced Materials Division asset groupings/reporting units (both part of the Transportation and Electronics business) with impairment resulting for the Advanced Materials Division. Underlying fair values were determined primarily using discounted cash flow models based on assumptions of projected sales, EBITDA margins, capital expenditures, discount rates and other applicable items. Significant unobservable inputs used to estimate the fair values of the asset groupings included discount rates, which were 11% to 12%. Fair Value of Financial Instruments: The Company’s financial instruments include cash and cash equivalents, marketable securities, accounts receivable, certain investments, accounts payable, borrowings, and derivative contracts. The fair values of cash equivalents, accounts receivable, accounts payable, and short-term borrowings and current portion of long-term debt approximated carrying values because of the short-term nature of these instruments. Available-for-sale marketable securities, in addition to certain derivative instruments, are recorded at fair values as indicated in the preceding disclosures. To estimate fair values (classified as level 2) for its long-term debt, the Company utilized third-party quotes, which are derived all or in part from model prices, external sources, market prices, or the third-party’s internal records. Information with respect to the carrying amounts and estimated fair values of these financial instruments follow: 2022 2021 (Millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, excluding current portion $ 14,001 $ 12,484 $ 16,056 $ 17,601 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Warranties/Guarantees: 3M’s accrued product warranty liabilities, recorded on the Consolidated Balance Sheet as part of current and long-term liabilities, are estimated at approximately $48 million at December 31, 2022, and $48 million at December 31, 2021. Further information on product warranties is not disclosed, as the Company considers the balance immaterial to its consolidated results of operations and financial condition. 3M guarantees of loans with third parties and other guarantee arrangements are not material. 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 claims, lawsuits and proceedings include, but are not limited to, products liability (involving products that the Company now or formerly manufactured and sold), intellectual property, commercial, antitrust, federal healthcare program related laws and regulations, such as the False Claims Act and anti-kickback laws, securities, and environmental laws in the United States and other jurisdictions. Unless otherwise stated, the Company is vigorously defending all such litigation and proceedings. From time to time, the Company also receives subpoenas, investigative demands or requests for information from various government agencies in the United States and foreign countries. The Company generally responds in a cooperative, thorough and timely manner. These responses sometimes require time and effort and can result in considerable costs being incurred by the Company. Such requests can also lead to the assertion of claims or the commencement of administrative, civil, or criminal legal proceedings against the Company and others, as well as to settlements. The outcomes of legal proceedings and regulatory matters are often difficult to predict. Any determination that the Company’s operations or activities are not, or were not, in compliance with applicable laws or regulations could result in the imposition of fines, civil or criminal penalties, and equitable remedies, including disgorgement, suspension or debarment or injunctive relief. Process for Disclosure and Recording of Liabilities Related to Legal Proceedings Many lawsuits and claims involve highly complex issues relating to causation, scientific evidence, and alleged actual damages, all of which are otherwise subject to substantial uncertainties. Assessments of lawsuits and claims can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions. When making determinations about recording liabilities related to legal proceedings, the Company complies with the requirements of ASC 450, Contingencies , and related guidance, and records liabilities in those instances where it can reasonably estimate the amount of the loss and when the loss is probable. Where the reasonable estimate of the probable loss is a range, the Company records as an accrual in its financial statements the most likely estimate of the loss, or the low end of the range if there is no one best estimate. The Company either discloses the amount of a possible loss or range of loss in excess of established accruals if estimable, or states that such an estimate cannot be made. The Company discloses significant legal proceedings even where liability is not probable or the amount of the liability is not estimable, or both, if the Company believes there is at least a reasonable possibility that a loss may be incurred. Because litigation is subject to inherent uncertainties, and unfavorable rulings or developments could occur, there can be no certainty that the Company may not ultimately incur charges in excess of presently recorded liabilities. Many of the matters described are at preliminary stages or seek an indeterminate amount of damages. It is not uncommon for claims to be resolved over many years. A future adverse ruling, settlement, unfavorable development, or increase in accruals for one or more of these matters could result in future charges that could have a material adverse effect on the Company’s results of operations or cash flows in the period in which they are recorded. Based on experience and developments, the Company reexamines its estimates of probable liabilities and associated expenses and receivables each period, and whether it is able to estimate a liability previously determined to be not estimable and/or not probable. Where appropriate, the Company makes additions to or adjustments of its estimated liabilities. As a result, the current estimates of the potential impact on the Company’s consolidated financial position, results of operations and cash flows for the legal proceedings and claims pending against the Company could change in the future. Process for Disclosure and Recording of Insurance Receivables Related to Legal Proceedings The Company estimates insurance receivables based on an analysis of the terms of its numerous policies, including their exclusions, pertinent case law interpreting comparable policies, its experience with similar claims, and assessment of the nature of the claim and remaining coverage, and records an amount it has concluded is recognizable and expects to receive in light of the loss recovery and/or gain contingency models under ASC 450, ASC 610-30, and related guidance. For those insured legal proceedings where the Company has recorded an accrued liability in its financial statements, the Company also records receivables for the amount of insurance that it concludes as recognizable from the Company’s insurance program. For those insured matters where the Company has not recorded an accrued liability because the liability is not probable or the amount of the liability is not estimable, or both, but where the Company has incurred an expense in defending itself, the Company records receivables for the amount of insurance that it concludes as recognizable for the expense incurred. The following sections first describe the significant legal proceedings in which the Company is involved, and then describe the liabilities and associated insurance receivables the Company has accrued relating to its significant legal proceedings. Respirator Mask/Asbestos Litigation As of December 31, 2022, the Company is a named defendant, with multiple co-defendants, in numerous lawsuits in various courts that purport to represent approximately 4,028 individual claimants, compared to approximately 3,876 individual claimants with actions pending December 31, 2021. The vast majority of the lawsuits and claims resolved by and currently pending against the Company allege use of some of the Company’s mask and respirator products and seek damages from the Company and other defendants for alleged personal injury from workplace exposures to asbestos, silica, coal mine dust or other occupational dusts found in products manufactured by other defendants or generally in the workplace. A minority of the lawsuits and claims resolved by and currently pending against the Company generally allege personal injury from occupational exposure to asbestos from products previously manufactured by the Company, which are often unspecified, as well as products manufactured by other defendants, or occasionally at Company premises. The Company’s current volume of new and pending matters is substantially lower than it experienced at the peak of filings in 2003. The Company expects that filing of claims by unimpaired claimants in the future will continue to be at much lower levels than in the past. Accordingly, the number of claims alleging more serious injuries, including mesothelioma, other malignancies, and black lung disease, will represent a greater percentage of total claims than in the past. Over the past twenty The Company has demonstrated in these past trial proceedings that its respiratory protection products are effective as claimed when used in the intended manner and in the intended circumstances. Consequently, the Company believes that claimants are unable to establish that their medical conditions, even if significant, are attributable to the Company’s respiratory protection products. Nonetheless, the Company’s litigation experience indicates that claims of persons alleging more serious injuries, including mesothelioma, other malignancies, and black lung disease, are costlier to resolve than the claims of unimpaired persons, and it therefore believes the average cost of resolving pending and future claims on a per-claim basis will continue to be higher than it experienced in prior periods when the vast majority of claims were asserted by medically unimpaired claimants. Since the second half of 2020, the Company has experienced an increase in the number of cases filed that allege injuries from exposures to coal mine dust; that increase represents the substantial majority of the growth in case numbers referred to above. As previously reported, the State of West Virginia, through its Attorney General, filed a complaint in 2003 against the Company and two other manufacturers of respiratory protection products in the Circuit Court of Lincoln County, West Virginia, and amended its complaint in 2005. The amended complaint seeks substantial, but unspecified, compensatory damages primarily for reimbursement of the costs allegedly incurred by the State for worker’s compensation and healthcare benefits provided to all workers with occupational pneumoconiosis and unspecified punitive damages. In October 2019, the court granted the State’s motion to sever its unfair trade practices claim, which seeks civil penalties of up to $5,000 per violation under the state's Consumer Credit Protection Act relating to statements that the State contends were misleading about 3M’s respirators. A bench trial for the unfair trade practices claims has been rescheduled for late February 2023. An expert witness retained by the State has recently estimated that 3M sold over five million respirators into the state during the relevant time period, and the State alleges that each respirator sold constitutes a separate violation under the Act. 3M disputes the expert's estimates and the State's position regarding what constitutes a separate violation of the Act. 3M has asserted various additional defenses, including that the Company's marketing did not violate the Act at any time, and that the State's claims are barred under the applicable statute of limitations. No liability has been recorded for any portion of this matter because the Company believes that liability is not probable and reasonably estimable at this time. In addition, the Company is not able to estimate a possible loss or range of loss given the lack of any meaningful discovery responses by the State of West Virginia as to key issues, and the assertions of claims against two other manufacturers where a defendant’s share of liability may turn on the law of joint and several liability and by the amount of fault, if any, a factfinder may allocate to each defendant if the case were ultimately tried. Respirator Mask/Asbestos Liabilities and Insurance Receivables The Company regularly conducts a comprehensive legal review of its respirator mask/asbestos liabilities. The Company reviews recent and historical claims data, including without limitation, (i) the number of pending claims filed against the Company, (ii) the nature and mix of those claims (i.e., the proportion of claims asserting usage of the Company’s mask or respirator products and alleging exposure to each of asbestos, silica, coal or other occupational dusts, and claims pleading use of asbestos-containing products allegedly manufactured by the Company), (iii) the costs to defend and resolve pending claims, and (iv) trends in filing rates and in costs to defend and resolve claims, (collectively, the “Claims Data”). As part of its comprehensive legal review, the Company regularly provides the Claims Data to a third party with expertise in determining the impact of Claims Data on future filing trends and costs. The third party assists the Company in estimating the costs to defend and resolve pending and future claims. The Company uses these estimates to develop its best estimate of probable liability. Developments may occur that could affect the Company’s estimate of its liabilities. These developments include, but are not limited to, significant changes in (i) the key assumptions underlying the Company’s accrual, including, the number of future claims, the nature and mix of those claims, the average cost of defending and resolving claims, and in maintaining trial readiness (ii) trial and appellate outcomes, (iii) the law and procedure applicable to these claims, and (iv) the financial viability of other co-defendants and insurers. As a result of its review of its respirator mask/asbestos liabilities, of pending and expected lawsuits and of the cost of resolving claims of persons who claim more serious injuries, including mesothelioma, other malignancies, and black lung disease, the Company increased its accruals in 2022 for respirator mask/asbestos liabilities by $31 million. In 2022, the Company made payments for legal defense costs and settlements of $67 million related to the respirator mask/asbestos litigation. As of December 31, 2022, the Company had an accrual for respirator mask/asbestos liabilities (excluding Aearo accruals) of $604 million. This accrual represents the Company’s best estimate of probable loss and reflects an estimation period for future claims that may be filed against the Company approaching the year 2050. The Company cannot estimate the amount or upper end of the range of amounts by which the liability may exceed the accrual the Company has established because of the (i) inherent difficulty in projecting the number of claims that have not yet been asserted or the time period in which future claims may be asserted, (ii) the complaints nearly always assert claims against multiple defendants where the damages alleged are typically not attributed to individual defendants so that a defendant’s share of liability may turn on the law of joint and several liability, which can vary by state, (iii) the multiple factors described above that the Company considers in estimating its liabilities, and (iv) the several possible developments described above that may occur that could affect the Company’s estimate of liabilities. As of December 31, 2022, the Company’s receivable for insurance recoveries related to the respirator mask/asbestos litigation was $4 million. In addition, the Company continues to seek coverage under the policies of certain insolvent and other insurers. Once those claims for coverage are resolved, the Company will have collected substantially all of its remaining insurance coverage for respirator mask/asbestos claims. Respirator Mask/Asbestos Litigation — Aearo Technologies On April 1, 2008, a subsidiary of the Company acquired the stock of Aearo Holding Corp., the parent of Aearo Technologies (“Aearo”). Aearo manufactured and sold various products, including personal protection equipment, such as eye, ear, head, face, fall and certain respiratory protection products. Aearo and/or other companies that previously owned and operated Aearo’s respirator business (American Optical Corporation, Warner-Lambert LLC, AO Corp. and Cabot Corporation (“Cabot”)) are named defendants, with multiple co-defendants, including the Company, in numerous lawsuits in various courts in which plaintiffs allege use of mask and respirator products and seek damages from Aearo and other defendants for alleged personal injury from workplace exposures to asbestos, silica-related, coal mine dust, or other occupational dusts found in products manufactured by other defendants or generally in the workplace. In July 2022, Aearo Technologies and certain of its related entities (collectively, the "Aearo Entities") voluntarily initiated chapter 11 proceedings under the U.S. Bankruptcy Code seeking court supervision to establish a trust, funded by the Company, to efficiently and equitably satisfy all claims determined to be entitled to compensation (including the Aearo respirator mask/asbestos matters). This represents a change in strategy for managing the Combat Arms Version 2 earplugs and Aearo respirator mask/asbestos alleged litigation liabilities. As a result, 3M's accrual relative to the commitments associated with that trust includes Aearo respirator mask/asbestos matters. The U.S. Bankruptcy Court has stayed the Aearo respirator mask/asbestos litigation matters as the chapter 11 proceedings move forward. For additional information, see the discussion within the section "Product Liability Litigation" with respect to Aearo Technologies Dual-Ended Combat Arms Earplugs. Preceding respirator mask/asbestos — Aearo Technologies matters/information: Prior to the voluntary chapter 11 proceedings and as previously disclosed, as of December 31, 2021, the Company, through its Aearo subsidiary, had accruals of $46 million for product liabilities and defense costs related to current and future Aearo-related asbestos, silica-related and coal mine dust claims. Responsibility for legal costs, as well as for settlements and judgments, is shared in an informal arrangement among Aearo, Cabot, American Optical Corporation and a subsidiary of Warner Lambert and their respective insurers (the “Payor Group”). Liability is allocated among the parties based on the number of years each company sold respiratory products under the “AO Safety” brand and/or owned the AO Safety Division of American Optical Corporation and the alleged years of exposure of the individual plaintiff. Aearo’s share of the contingent liability is further limited by an agreement entered into between Aearo and Cabot on July 11, 1995. This agreement provides that, so long as Aearo pays to Cabot a quarterly fee of $100,000, Cabot will retain responsibility and liability for, and indemnify Aearo against, any product liability claims involving exposure to asbestos, silica, or silica products for respirators sold prior to July 11, 1995. Because of the difficulty in determining how long a particular respirator remains in the stream of commerce after being sold, Aearo and Cabot have applied the agreement to claims arising out of the alleged use of respirators involving exposure to asbestos, silica or silica products prior to January 1, 1997. With these arrangements in place, Aearo’s potential liability is limited to exposures alleged to have arisen from the use of respirators involving exposure to asbestos, silica, or silica products on or after January 1, 1997. To date, Aearo has elected to pay the quarterly fee. Aearo could potentially be exposed to additional claims for some part of the pre-July 11, 1995 period covered by its agreement with Cabot if Aearo elects to discontinue its participation in this arrangement, or if Cabot is no longer able to meet its obligations in these matters. Developments may occur that could affect the estimate of Aearo’s liabilities. These developments include, but are not limited to: (i) significant changes in the number of future claims, (ii) significant changes in the average cost of resolving claims, (iii) significant changes in the legal costs of defending these claims, (iv) significant changes in the mix and nature of claims received, (v) trial and appellate outcomes, (vi) significant changes in the law and procedure applicable to these claims, (vii) significant changes in the liability allocation among the co-defendants, (viii) the financial viability of members of the Payor Group including exhaustion of available insurance coverage limits, and/or (ix) a determination that the interpretation of the contractual obligations on which Aearo has estimated its share of liability is inaccurate. The Company cannot determine the impact of these potential developments on its current estimate of Aearo’s share of liability for these existing and future claims. If any of the developments described above were to occur, the actual amount of these liabilities for existing and future claims could be significantly larger than the amount accrued. Because of the inherent difficulty in projecting the number of claims that have not yet been asserted, the complexity of allocating responsibility for future claims among the Payor Group, and the several possible developments that may occur that could affect the estimate of Aearo’s liabilities, the Company cannot estimate the amount or range of amounts by which Aearo’s liability may exceed the accrual the Company has established. Environmental Matters and Litigation The Company’s operations are subject to environmental laws and regulations including those pertaining to air emissions, wastewater discharges, toxic or hazardous substances, and the handling and disposal of solid and hazardous wastes enforceable by national, state, and local authorities around the world, many for which private parties in the United States and abroad have rights of action. These laws and regulations can form the basis of, under certain circumstances, claims for the investigation and remediation of contamination, for capital investment in pollution control equipment, for restoration of and/or compensation for damages to natural resources, and for personal injury and property damage claims. The Company has incurred, and will continue to incur, costs and capital expenditures in complying with these laws and regulations, defending personal injury and property damage claims, and modifying its business operations in light of its environmental responsibilities. In its effort to satisfy its environmental responsibilities and comply with environmental laws and regulations, the Company has established, and periodically updates, policies relating to environmental standards of performance for its operations worldwide. Under certain environmental laws, including the United States Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) and similar state laws, the Company may be jointly and severally liable, sometimes with other potentially responsible parties, for the costs of remediation of environmental contamination at current or former facilities and at off-site locations where hazardous substances have been released or disposed of. The Company has identified numerous locations, many of which are in the United States, at which it may have some liability for remediation of contamination. Please refer to the section entitled “ Environmental Liabilities and Insurance Receivables” that follows for information on the amount of the accrual for such liabilities. Environmental Matters As previously reported, the Company has been voluntarily cooperating with ongoing reviews by local, state, federal (primarily the U.S. Environmental Protection Agency (EPA)), and international agencies of possible environmental and health effects of various perfluorinated compounds, including perfluorooctanoate (PFOA), perfluorooctane sulfonate (PFOS), perfluorohexane sulfonate (PFHxS), perfluorobutane sulfonate (PFBS), h exafluoropropylene oxide dimer acid (HFPO-DA) and other per- and polyfluoroalkyl substances (collectively PFAS). As a result of a phase-out decision in May 2000, the Company no longer manufactures certain PFAS compounds including PFOA, PFOS, PFHxS, and their pre-cursor compounds. The Company ceased manufacturing and using the vast majority of these compounds within approximately two years of the phase-out announcement and ceased all manufacturing and the last significant use of this chemistry by the end of 2008. The Company continues to manufacture a variety of shorter chain length PFAS compounds, including, but not limited to, pre-cursor compounds to perfluorobutane sulfonate (PFBS). These compounds are used as input materials to a variety of products, including engineered fluorinated fluids, fluoropolymers and fluorelastomers, as well as surfactants, additives, and coatings. Through its ongoing life cycle management and its raw material composition identification processes associated with the Company’s policies covering the use of all persistent and bio-accumulative materials, the Company continues to review, control or eliminate the presence of certain PFAS in purchased materials, as intended substances in products, or as byproducts in some of 3M’s current manufacturing processes, products, and waste streams. 3M announced in December 2022 it will take two actions: exiting all PFAS manufacturing by the end of 2025; and working to discontinue the use of PFAS across its product portfolio by the end of 2025. 3M’s decision is based on careful consideration and a thorough evaluation of the evolving external landscape, including multiple factors such as accelerating regulatory trends focused on reducing or eliminating the presence of PFAS in the environment and changing stakeholder expectations. PFAS Regulatory and Legislative Activity Regulatory and legislative activities concerning PFAS are accelerating in the United States, Europe and elsewhere, and before certain international bodies. These activities include gathering of exposure and use information, risk assessment activities, consideration of regulatory approaches, and increasingly strict restrictions on various uses of PFAS in products and on PFAS in manufacturing emissions, in some cases moving towards non-detectable limits for certain PFAS compounds. Regulations of PFAS in emissions and in environmental media such as soil and water (including drinking water) are increasingly being set at levels that continue to decrease. Global regulations also appear to be increasingly focused on a broader group of PFAS, and may include those PFAS compounds used in current products. If such activity continues and regulations become final and enforceable, 3M may incur material costs to comply with new regulatory requirements or as a result of litigation or additional enforcement actions. Such regulatory changes may also have an impact on 3M’s reputation and may also increase its costs and potential litigation exposure to the extent legal defenses rely on regulatory thresholds, or changes in regulation influence public perception. Given divergent and rapidly evolving regulatory drinking water and other standards, there is currently significant uncertainty about the potential costs to industry and communities associated with remediation and control technologies that may be required. Europe In the European Union, where 3M has PFAS manufacturing facilities in countries such as Germany and Belgium, recent regulatory activities have included both preliminary and on-going work on various restrictions of PFAS or certain PFAS compounds under the EU’s Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) and the EU’s Persistent Organic Pollutants (POPs) Regulation. PFOA, PFOS and PFHxS (and their related compounds) have also been listed in the Stockholm Convention, which has been ratified by more than 180 countries and aims for global elimination of certain listed substances (with narrow exceptions). In January 2023, the European Chemicals Agency (ECHA) received a proposal for a broad restriction of PFAS as a class under REACH. ECHA has stated it expects to publish the proposal for public consultation in February 2023. Effective January 2023, the EU Food Contaminants Regulation targeting four PFAS (PFOS, PFOA, PFNA, PFHxS) in foodstuff (eggs and animal derived meat) prohibits the sale in all member states of foods containing levels of these chemicals exceeding the regulatory thresholds. As member states implement the regulation, Dyneon, a 3M subsidiary that operates the Gendorf facility in Germany, in coordination with local authorities and farmers, has proposed a pilot program of food sampling to determine if any remedial action is necessary. The EU regulates PFAS in drinking water via a Drinking Water Directive, which includes a limit of 0.1 micrograms per liter (µg/l) (or 0.1 parts for billion (ppb)) for a sum of 20 PFAS in drinking water. Member States have until January 2023 to implement the Directive in their countries. Dyneon has a recycling process for a critical emulsifier from which small amounts of PFOA are present after recycling, as an unintended and unavoidable byproduct of certain earlier process steps. With respect to the applicability of the amendment of the EU POPs Regulation with PFOA applicable since 2021, Dyneon proactively consulted with the relevant German competent authority regarding process improvements underway. The implementation of process improvements and analytical work is ongoing. 3M Belgium, a subsidiary of the Company, has been working with the Public Flemish Waste Agency (OVAM) for several years to investigate and remediate historical PFAS contaminations at and near the 3M Belgium facility in Zwijndrecht, Antwerp, Belgium. In connection with a ring road construction project (the Oosterweel Project) in Antwerp that involved extensive soil work, an investigative committee with judicial investigatory powers was formed in June 2021 by the Flemish Parliament to investigate PFAS found in the soil and groundwater near the Zwijndrecht facility. 3M Belgium testified at Flemish parliamentary committee hearings in June and September 2021 on PFAS-related matters. The Flemish Parliament, the Minister of the Environment, and regulatory authorities initiated investigations and demands for information related to the release of PFAS from the Zwijndrecht facility. The Company has cooperated with the authorities in the investigations and information requests and is working with the authorities on an ongoing basis, as they continue to maintain oversight of 3M Belgium’s operations at the Zwijndrecht facility, as further discussed below. Separately, as previously disclosed, the Company is aware that certain residents of Zwijndrecht and non-governmental organizations filed a criminal complaint with an Antwerp investigatory judge against 3M Belgium, alleging it had unlawfully abandoned waste in violation of its environmental care obligations. Certain additional parties reportedly joined the complaint . 3M Belgium has not been served with any such complaint. Safety measures – wastewater discharge. In August 2021, the Flemish Government served 3M Belgium with a safety measure requiring the capture of certain process wastewaters to prevent their entry into the site wastewater treatment plant. While 3M Belgium appealed the Safety Measure due to the belief it lacked adequate legal and factual foundation, 3M Belgium promptly implemented the required actions. In October 2021, the Province of Antwerp unilaterally adopted lower discharge limits for the nine PFAS compounds specifically identified in the water discharge permit and added a special condition that essentially prohibits discharge of any PFAS chemistry without a specific limit in the permit. 3M Belgium received a new two-year permit in May 2022 which contains strict new limits for 24 different PFAS, effective July 1, 2022. 3M Belgium believes that the recently installed additional control systems will enable it to meet these limits. Subsequently, the environmental enforcement agency has recently informed 3M Belgium that the agency believes that 3M Belgium must apply for discharge limits for certain additional “short-chain” PFAS pursuant to the special condition. Although disagreeing with the agency’s position, 3M Belgium is in the process of developing the application to amend the permit to add the additional PFAS. 3M Belgium has insufficient information to predict the limits that will be set forth for additional short-chain PFAS and is therefore unable to assess whether the current or future wastewater treatment system, as currently conceived, will meet future limits imposed. In December 2022, 3M Belgium received an official infraction report from the Flemish Environmental Inspectorate regarding the discharge of certain short chain PFAS compounds in wastewater from the Zwijndrecht facility. 3M Belgium previously identified these compounds and shared the results with the Inspectorate. The compounds at issue do not have specific discharge limits in the applicable wastewater discharge permit, and the infraction report references a special condition in the permit that prohibits detectable discharge of PFAS compounds that do not have a specific discharge limit in the permit. 3M Belgium disagrees with the Inspectorate’s interpretation of the special condition and the time period permitted for compliance with it. Moreover, 3M Belgium instituted a capturing pro |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The components of lease expense are as follows: (Millions) 2022 2021 2020 Operating lease cost $ 295 $ 319 $ 348 Finance lease cost: Amortization of assets 15 15 21 Interest on lease liabilities 2 2 1 Variable lease cost 135 127 101 Total net lease cost $ 447 $ 463 $ 471 Short-term lease cost and income related to sub-lease activity is immaterial for the Company. Supplemental balance sheet information related to leases is as follows: (Millions unless noted) Location on face of Balance Sheet 2022 2021 Operating leases: Operating lease right of use assets Operating lease right of use assets $ 829 $ 858 Current operating lease liabilities Operating lease liabilities - current 261 263 Noncurrent operating lease liabilities Operating lease liabilities 580 591 Total operating lease liabilities 841 854 Finance leases: Property and equipment, at cost Property, plant and equipment 218 223 Accumulated amortization Property, plant and equipment (accumulated depreciation) (126) (117) Property and equipment, net 92 106 Current obligations of finance leases Other current liabilities 11 7 Finance leases, net of current obligations Other liabilities 75 93 Total finance lease liabilities $ 86 $ 100 Weighted average remaining lease term (in years): Operating leases 5.5 5.5 Finance leases 6.3 6.6 Weighted average discount rate: Operating leases 2.2 % 1.8 % Finance leases 3.1 % 3.3 % Supplemental cash flow and other information related to leases is as follows: (Millions) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 295 $ 317 $ 326 Operating cash flows from finance leases 2 2 1 Financing cash flows from finance leases 25 19 58 Right of use assets obtained in exchange for lease liabilities: Operating leases 261 342 250 Finance leases 6 3 18 Sale leased-back activity in 2022, 2021 and 2020 was not material. Maturities of lease liabilities were as follows: December 31, 2022 (Millions) Finance Leases Operating Leases 2023 $ 19 $ 268 2024 18 192 2025 11 131 2026 9 83 2027 7 55 After 2027 26 162 Total 90 891 Less: Amounts representing interest 4 50 Present value of future minimum lease payments 86 841 Less: Current obligations 11 261 Long-term obligations $ 75 $ 580 As of December 31, 2022, the Company has additional operating lease commitments that have not yet commenced of approximately $14 million. These commitments pertain to 3M’s right of use of certain buildings. |
Leases | Leases The components of lease expense are as follows: (Millions) 2022 2021 2020 Operating lease cost $ 295 $ 319 $ 348 Finance lease cost: Amortization of assets 15 15 21 Interest on lease liabilities 2 2 1 Variable lease cost 135 127 101 Total net lease cost $ 447 $ 463 $ 471 Short-term lease cost and income related to sub-lease activity is immaterial for the Company. Supplemental balance sheet information related to leases is as follows: (Millions unless noted) Location on face of Balance Sheet 2022 2021 Operating leases: Operating lease right of use assets Operating lease right of use assets $ 829 $ 858 Current operating lease liabilities Operating lease liabilities - current 261 263 Noncurrent operating lease liabilities Operating lease liabilities 580 591 Total operating lease liabilities 841 854 Finance leases: Property and equipment, at cost Property, plant and equipment 218 223 Accumulated amortization Property, plant and equipment (accumulated depreciation) (126) (117) Property and equipment, net 92 106 Current obligations of finance leases Other current liabilities 11 7 Finance leases, net of current obligations Other liabilities 75 93 Total finance lease liabilities $ 86 $ 100 Weighted average remaining lease term (in years): Operating leases 5.5 5.5 Finance leases 6.3 6.6 Weighted average discount rate: Operating leases 2.2 % 1.8 % Finance leases 3.1 % 3.3 % Supplemental cash flow and other information related to leases is as follows: (Millions) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 295 $ 317 $ 326 Operating cash flows from finance leases 2 2 1 Financing cash flows from finance leases 25 19 58 Right of use assets obtained in exchange for lease liabilities: Operating leases 261 342 250 Finance leases 6 3 18 Sale leased-back activity in 2022, 2021 and 2020 was not material. Maturities of lease liabilities were as follows: December 31, 2022 (Millions) Finance Leases Operating Leases 2023 $ 19 $ 268 2024 18 192 2025 11 131 2026 9 83 2027 7 55 After 2027 26 162 Total 90 891 Less: Amounts representing interest 4 50 Present value of future minimum lease payments 86 841 Less: Current obligations 11 261 Long-term obligations $ 75 $ 580 As of December 31, 2022, the Company has additional operating lease commitments that have not yet commenced of approximately $14 million. These commitments pertain to 3M’s right of use of certain buildings. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation At the May 2021 Annual Meeting, the shareholders approved the Amended and Restated 3M Company 2016 Long-Term Incentive Plan (LTIP), which included an increase of 26,633,508 in the number of shares available for issuance. Awards may be issued in the form of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock awards, and performance units and performance shares. As of December 31, 2022, the remaining shares available for grant under the LTIP Program are 32 million and there were approximately 8,357 participants with outstanding options, restricted stock, or restricted stock units. The Company’s annual stock option and restricted stock unit grant is made in February to provide a strong and immediate link between the performance of individuals during the preceding year and the size of their annual stock compensation grants. The grant to eligible employees uses the closing stock price on the grant date. Accounting rules require recognition of expense under a non-substantive vesting period approach, requiring compensation expense recognition when an employee is eligible to retire. Employees are considered eligible to retire at age 55 and after having completed ten years of service. This retiree-eligible population represents 36 percent of the annual grant stock-based compensation expense; therefore, higher stock-based compensation expense is recognized in the first quarter. In addition to the 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. Amounts recognized in the financial statements with respect to stock-based compensation programs, which include stock options, restricted stock, restricted stock units, performance shares and the General Employees’ Stock Purchase Plan (GESPP), are provided in the following table. Capitalized stock-based compensation amounts were not material. Stock-Based Compensation Expense (Millions) 2022 2021 2020 Cost of sales $ 48 $ 47 $ 50 Selling, general and administrative expenses 169 185 169 Research, development and related expenses 46 42 43 Stock-based compensation expenses 263 274 262 Income tax benefits (62) (100) (82) Stock-based compensation expenses (benefits), net of tax $ 201 $ 174 $ 180 Stock Option Program The following table summarizes stock option activity during the year ended December 31: 2022 2021 2020 (Options in thousands) Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Under option — January 1 34,560 $ 163.52 35,401 $ 156.23 33,675 $ 151.15 Granted 3,776 162.39 3,612 175.04 4,777 157.25 Exercised (2,101) 98.91 (4,163) 110.20 (2,759) 93.23 Forfeited (729) 176.21 (290) 182.63 (292) 181.33 December 31 35,506 166.97 34,560 163.52 35,401 156.23 Options exercisable December 31 28,210 $ 167.42 26,956 $ 161.25 27,537 $ 149.67 Stock options generally vest over a period from one The total intrinsic values of stock options exercised during 2022, 2021 and 2020 was $116 million, $325 million and $206 million, respectively. Cash received from options exercised during 2022, 2021 and 2020 was $205 million, $457 million and $256 million, respectively. The Company’s actual tax benefits realized for the tax deductions related to the exercise of employee stock options for 2022, 2021 and 2020 was $24 million, $69 million and $44 million, respectively. For the primary 2022 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. Stock Option Assumptions Annual 2022 2021 2020 Exercise price $ 162.41 $ 175.04 $ 157.24 Risk-free interest rate 1.9 % 0.8 % 1.5 % Dividend yield 2.9 % 2.8 % 2.7 % Expected volatility 21.8 % 22.6 % 19.7 % Expected life (months) 83 83 78 Black-Scholes fair value $ 25.34 $ 25.33 $ 21.58 Expected volatility is a statistical measure of the amount by which a stock price is expected to fluctuate during a period. For the 2022 annual grant date, the Company estimated the expected volatility based upon the following three volatilities of 3M stock: the median of the term of the expected life rolling volatility; the median of the most recent term of the expected life volatility; and the implied volatility on the grant date. The expected term assumption is based on the weighted average of historical grants. Restricted Stock and Restricted Stock Units The following table summarizes restricted stock and restricted stock unit activity during the year ended December 31: 2022 2021 2020 (Shares in thousands) Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested balance — As of January 1 1,987 $ 175.96 1,722 $ 189.78 1,573 $ 201.11 Granted Annual 1,102 160.24 822 176.82 733 157.29 Other — — — — 45 159.49 Vested (557) 197.48 (462) 228.94 (570) 176.20 Forfeited (157) 169.22 (95) 176.13 (59) 196.31 As of December 31 2,375 164.07 1,987 175.96 1,722 189.78 Restricted stock units granted generally vest three years following the grant date assuming continued employment. Dividend equivalents equal to the dividends payable on the same number of shares of 3M common stock accrue on these restricted stock units during the vesting period, although no dividend equivalents are paid on any of these restricted stock units that are forfeited prior to the vesting date. Dividends are paid out in cash at the vest date on restricted stock units. Since the rights to dividends are forfeitable, there is no impact on basic earnings per share calculations. Weighted average restricted stock unit shares outstanding are included in the computation of diluted earnings per share. Performance Shares Instead of restricted stock units, the Company makes annual grants of performance shares to members of its executive management. The 2022 performance criteria for these performance shares (organic sales growth, free cash flow growth, and earnings per share growth) were selected because the Company believes that they are important drivers of long-term stockholder value. The number of shares of 3M common stock that could actually be delivered at the end of the three-year performance period may be anywhere from 0% to 200% of each performance share granted, depending on the performance of the Company during such performance period. When granted, these performance shares are awarded at 100% of the estimated number of shares at the end of the three-year performance period and are reflected under “Granted” in the table below. Non-substantive vesting requires that expense for the performance shares be recognized over one The following table summarizes performance share activity during the year ended December 31: 2022 2021 2020 (Shares in thousands) Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Undistributed balance — As of January 1 481 $ 175.12 423 $ 188.61 444 $ 205.58 Granted 269 144.77 166 176.79 203 153.16 Distributed (116) 207.49 (115) 228.80 (206) 190.84 Performance change (196) 153.15 40 176.35 25 166.49 Forfeited (47) 155.71 (33) 171.35 (43) 172.92 As of December 31 391 157.98 481 175.12 423 188.61 General Employees’ Stock Purchase Plan (GESPP): As of December 31, 2022, shareholders have approved 60 million shares for issuance under the Company’s GESPP. Substantially all employees are eligible to participate in the plan. Participants are granted options at 85% of market value at the date of grant. There are no GESPP shares under option at the beginning or end of each year because options are granted on the first business day and exercised on the last business day of the same month. The weighted-average fair value per option granted during 2022, 2021 and 2020 was $21.20, $27.80 and $23.47, respectively. The fair value of GESPP options was based on the 15% purchase price discount. The Company recognized compensation expense for GESPP options of $31 million in 2022, $32 million in 2021, and $31 million in 2020. |
Business Segments and Geographi
Business Segments and Geographical Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segments and Geographical Information | Business Segments and Geographic Information 3M’s businesses are organized, managed and internally grouped into segments based on differences in markets, products, technologies and services. 3M manages its operations in four business segments: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer. 3M’s four 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. In July 2022, 3M announced its intention to spin off the Health Care business as a separate public company (see Note 3 for additional information). Transactions among reportable segments are recorded at cost. 3M is an integrated enterprise characterized by substantial intersegment cooperation, cost allocations and inventory transfers. Therefore, management does not represent that these segments, if operated independently, would report the operating income information shown. 3M discloses business segment operating income as its measure of segment profit/loss, reconciled to both total 3M operating income and income before taxes. Business segment operating income excludes certain expenses and income that are not allocated to business segments (as described below in “Corporate and Unallocated”). Effective in the first quarter of 2022, the measure of segment operating performance used by 3M’s chief operating decision maker (CODM) changed and, as a result, 3M’s disclosed measure of segment profit/loss (business segment operating income (loss) ) was updated. The change to business segment operating income aligns with the update to how the CODM assesses performance and allocates resources for the Company’s business segments. The changes included the items described below. The financial information presented herein reflects the impact of these business segment reporting changes for all periods presented. Effective in the first quarter of 2022: Eliminating inclusion of dual credit in measure of segment operating performance 3M business segment operating performance measures were updated to no longer include dual credit to business segments for certain sales and related operating income. Management previously evaluated its business segments based on net sales and operating income performance, including dual credit reporting. 3M reflected additional (“dual”) credit to another business segment when the customer account activity (“sales district”) with respect to the particular product sold to the external customer was provided by a different business segment. For example, privacy screen protection products are primarily sold by the Display Materials and Systems Division within the Transportation and Electronics business segment; however, certain sales districts within the Consumer business segment provide the customer account activity for sales of the product to particular customers. In this example, the non-primary selling segment (Consumer) previously would also have received credit for the associated net sales initiated through its sales district and the related approximate operating income. The offset to the dual credit business segment reporting was reflected as a reconciling item entitled “Elimination of Dual Credit,” such that sales and operating income in total were unchanged. Reflecting certain litigation-related costs in the Safety and Industrial segment's operating performance measure 3M's business segment operating performance measure with respect to its Safety and Industrial business segment was updated relative to litigation-related costs for non-Aearo and Aearo respirator mask/asbestos litigation matters. Previously, 3M included these costs, when significant, as a special item (as further described below) within Corporate and Unallocated. 3M changed to include all litigation-related costs associated with respirator mask/asbestos litigation matters (along with other Safety and Industrial matters already included therein, such as those related to Combat Arms Earplugs) within the Safety and Industrial business segment. Note, however, that prospectively during the Aearo chapter 11 bankruptcy period (which began in July 2022 — see Note 16) net costs for significant litigation associated with Combat Arms Earplugs and Aearo-respirator mask/asbestos matters are reflected in Corporate and Unallocated. Business Segment Products Business Segment Representative revenue-generating activities, products or services Safety and Industrial • Industrial abrasives and finishing for metalworking applications • Autobody repair solutions • Closure systems for personal hygiene products, masking, and packaging materials • Electrical products and materials for construction and maintenance, power distribution and electrical original equipment manufacturers (OEMs) • Structural adhesives and tapes • Respiratory, hearing, eye and fall protection solutions • Natural and color-coated mineral granules for shingles Transportation and Electronics • Advanced ceramic solutions • Attachment tapes, films, sound and temperature management for transportation vehicles • Premium large format graphic films for advertising and fleet signage • Light management films and electronics assembly solutions • Packaging and interconnection solutions • Reflective signage for highway, and vehicle safety Health Care • Health care procedure coding and reimbursement software • Skin, wound care, and infection prevention products and solutions • Dentistry and orthodontia solutions • Filtration and purification systems Consumer • Consumer bandages, braces, supports and consumer respirators • Cleaning products for the home • Retail abrasives, paint accessories, car care DIY products, picture hanging and consumer air quality solutions • Stationery products Some seasonality impacts this business segment related to back-to-school, generally in the third quarter of each year Business Segment Information (Millions) Net Sales 2022 2021 2020 Safety and Industrial $ 11,604 $ 11,981 $ 10,972 Transportation and Electronics 8,902 9,262 8,406 Health Care 8,421 8,597 7,832 Consumer 5,298 5,513 4,976 Corporate and Unallocated 4 2 (2) Total Company $ 34,229 $ 35,355 $ 32,184 Operating Performance 2022 2021 2020 Safety and Industrial $ 1,199 $ 2,466 $ 2,588 Transportation and Electronics 1,012 1,880 1,701 Health Care 1,815 2,037 1,662 Consumer 994 1,162 1,119 Total business segment operating income 5,020 7,545 7,070 Corporate and Unallocated Corporate special items: Net costs for significant litigation (877) (214) (148) Divestiture costs (60) — — Gain on business divestitures 2,724 — 389 Divestiture-related restructuring actions (41) — (55) Russia exit charges (109) — — Total corporate special items 1,637 (214) 186 Other corporate expense - net (118) 38 (95) Total Corporate and Unallocated 1,519 (176) 91 Total Company operating income 6,539 7,369 7,161 Other expense/(income), net 147 165 366 Income before income taxes $ 6,392 $ 7,204 $ 6,795 Assets Depreciation & Amortization Capital Expenditures (Millions) 2022 2021 2022 2021 2020 2022 2021 2020 Safety and Industrial $ 11,730 $ 11,744 $ 566 $ 593 $ 562 $ 512 $ 339 $ 451 Transportation and Electronics 6,453 6,999 410 419 429 562 453 454 Health Care 13,343 14,055 623 636 626 272 249 251 Consumer 2,753 2,783 148 147 140 146 109 120 Corporate and Unallocated 12,176 11,491 84 120 154 257 453 225 Total Company $ 46,455 $ 47,072 $ 1,831 $ 1,915 $ 1,911 $ 1,749 $ 1,603 $ 1,501 Assets subject to attribution to business segments largely include accounts receivable; inventories; property, plant and equipment; goodwill; intangible assets; and certain limited other assets. All other items are reflected in Corporate and Unallocated. Accounts receivable and inventory are attributed based on underlying sales or activity. Property, plant and equipment are attributed to a particular business segment based on that item’s primary user while certain items such as corporate-shared headquarters/administrative centers, laboratories, distribution centers and enterprise software systems are reflected in Corporate and Unallocated. Intangible assets and goodwill are largely directly associated with a particular reporting unit and attributed on that basis. Business segment depreciation reflected above is based on the underlying usage of assets (while the particular asset itself may be entirely reflected within a different business segment’s asset balance as its primary user). This depreciation also includes allocated depreciation associated with a number of the assets reflected in Corporate and Unallocated as described above. Corporate and Unallocated Corporate and Unallocated operating income includes “corporate special items” and “other corporate expense-net”. Corporate special items include net costs for significant litigation associated with Combat Arms Earplugs and Aearo-respirator mask/asbestos matters during the chapter 11 bankruptcy period (which began in July 2022) and with PFAS-related other environmental matters (see Note 16). Corporate special items also include divestiture costs, gain/loss on business divestitures (see Note 3), divestiture-related restructuring costs (see Note 5), and Russia exit costs (see Note 15). Divestiture costs include costs related to separating and divesting substantially an entire business segment of 3M following public announcement of its intended divestiture. Other corporate expense-net includes items such as net costs related to limited unallocated corporate staff and centrally managed material resource centers of expertise costs, corporate philanthropic activity, and other net costs that 3M may choose not to allocate directly to its business segments. Other corporate expense-net also includes costs and income from transition supply, manufacturing, and service arrangements with Neogen Corporation following the 2022 split-off of 3M's Food Safety business and with the acquirer of the former Drug Delivery business following its 2020 divestiture. Items classified as revenue from this activity are included in Corporate and Unallocated net sales. Because Corporate and Unallocated includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis. Geographic Information 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. Refer to Note 2 for geographic net sales. Property, Plant and Equipment - net (Millions) 2022 2021 Americas $ 6,066 $ 5,864 Asia Pacific 1,389 1,582 Europe, Middle East and Africa 1,723 1,983 Total Company $ 9,178 $ 9,429 United States net property, plant and equipment (PP&E) was $5,662 million and $5,484 million at December 31, 2022 and 2021, respectively. China/Hong Kong net property, plant and equipment (PP&E) was $518 million and $578 million at December 31, 2022 and 2021, respectively. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation: 3M is a diversified global manufacturer, technology innovator and marketer of a wide variety of products. All applicable subsidiaries are consolidated. All intercompany transactions are eliminated. As used herein, the term “3M” or “Company” refers to 3M Company and subsidiaries unless the context indicates otherwise. |
Basis of presentation | Basis of presentation: Certain amounts in the prior years’ consolidated financial statements have been reclassified to conform to the current year presentation. Effective in the first quarter of 2022, 3M made changes in the measure of segment operating performance used by 3M’s chief operating decision maker—impacting 3M’s disclosed measure of segment profit/loss (business segment operating income). See additional information in Note 19. 3M's disclosed disaggregated revenue was also updated as a result of the changes in segment reporting. See additional information in Note 2. Information provided herein reflects the impact of these changes for all periods presented. |
Foreign currency translation | Foreign currency translation: Local currencies generally are considered the functional currencies outside the United States. Exceptions include 3M’s subsidiaries in Argentina and, beginning in the second quarter of 2022, in Turkey, the economy of which also became highly inflationary. The operating income and balances of underlying net monetary assets denominated in Turkish lira are not material to 3M. The financial statements of these subsidiaries are remeasured as if their functional currency is that of their parent. Assets and liabilities for operations in local-currency environments are translated at month-end exchange rates of the period reported. Income and expense items are translated at average monthly currency exchange rates in effect during the period. Cumulative translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in shareholders’ equity. |
Use of estimates | Use of estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company considered the coronavirus (COVID-19) related impacts on its estimates, as appropriate, within its consolidated financial statements and there may be changes to those estimates in future periods. 3M believes that the accounting estimates are appropriate after giving consideration to the increased uncertainties surrounding the severity and duration of the COVID-19 pandemic. Such estimates and assumptions are subject to inherent uncertainties which may result in actual amounts differing from these estimates. |
Cash and cash equivalents | Cash and cash equivalents: Cash and cash equivalents consist of cash and temporary investments with maturities of three months or less when acquired. |
Marketable securities | Marketable securities: Marketable securities include available-for-sale debt securities and are recorded at fair value. Cost of securities sold use the first in, first out (FIFO) method. The classification of marketable securities as current or non-current is based on the availability for use in current operations. 3M reviews impairments associated with its marketable securities in accordance with the measurement guidance provided by ASC 320, Investments-Debt Securities and ASC 326-30, Available-for-Sale Debt Securities, when determining whether a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. An impairment relating to credit losses is recorded through an allowance for credit losses. The allowance is limited by the amount that the fair value is less than the amortized cost basis. A change in the allowance for credit losses is recorded into earnings in the period of the change. Any impairment that has not been recorded through an allowance for credit losses is recorded through accumulated other comprehensive income as a component of shareholders’ equity. The factors considered in determining whether a credit loss exists can include the extent to which fair value is less than the amortized cost basis, changes in the credit quality of the underlying loan obligors, credit ratings actions, as well as other factors. When a credit loss exists, the Company compares the present value of cash flows expected to be collected from the debt security with the amortized cost basis of the security to determine what allowance amount, if any, should be recorded. Amounts are reclassified out of accumulated other comprehensive income and into earnings upon sale or a change in the portions of impairment related to credit losses and not related to credit losses. |
Investment | Investments: All equity securities that do not result in consolidation and are not accounted for under the equity method are measured at fair value with changes therein reflected in net income. 3M utilizes the measurement alternative for equity investments that do not have readily determinable fair values and measures these investments at cost less impairment plus or minus observable price changes in orderly transactions. The balance of these securities is disclosed in Note 7. |
Other assets | Other assets: Other assets include deferred income taxes, product and other insurance receivables, the cash surrender value of life insurance policies, medical equipment in rental arrangements utilized primarily by hospitals and other medical clinics, prepaid pension and postretirement and other long-term assets. Investments in life insurance policies are reported at the amount that could be realized under contract at the balance sheet date, with any changes in cash surrender value or contract value during the period accounted for as an adjustment of premiums paid. Cash outflows and inflows associated with life insurance activity are included in “Purchases of marketable securities and investments” and “Proceeds from maturities and sale of marketable securities and investments,” respectively. |
Inventories | Inventories: Inventories are stated at the lower of cost or net realizable value (NRV), which is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Cost is generally determined on a first-in, first-out basis. |
Property, plant and equipment | Property, plant and equipment: Property, plant and equipment, including capitalized interest and internal direct engineering costs, are recorded at cost. Depreciation of property, plant and equipment generally is computed using the straight-line method based on the estimated useful lives of the assets. The estimated useful lives of buildings and improvements primarily range from ten twenty three five |
Conditional asset retirement obligations | Conditional asset retirement obligations: A liability is initially recorded at fair value for an asset retirement obligation associated with the retirement of tangible long-lived assets in the period in which it is incurred if a reasonable estimate of fair value can be made. Conditional asset retirement obligations exist for certain long-term assets of the Company. The obligation is initially measured at fair value using expected present value techniques. Over time the liabilities are accreted for the change in their present value and the initial capitalized costs are depreciated over the remaining useful lives of the related assets. The asset retirement obligation liability was $177 million and $176 millions at December 31, 2022 and 2021, respectively. |
Goodwill | Goodwill: Goodwill is the excess of cost of an acquired entity over the amounts assigned to assets acquired and liabilities assumed in a business combination. Goodwill is not amortized. Goodwill is tested for impairment annually in the fourth quarter of each year, and is tested for impairment between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is done at a reporting unit level, with all goodwill assigned to a reporting unit. Reporting units are one level below the business segment level, but are required to be combined when reporting units within the same segment have similar economic characteristics. 3M did not combine any of its reporting units for impairment testing. The impairment loss is measured as the amount by which the carrying value of the reporting unit’s net assets exceeds its estimated fair value, not to exceed the carrying value of the reporting unit’s goodwill. The estimated fair value of a reporting unit is determined based on a market approach using comparable company information such as EBITDA (earnings before interest, taxes, depreciation and amortization) multiples or, in some cases, based on a discounted cash flow analysis. Companies have the option to first assess qualitative factors to determine whether the fair value of a reporting unit is not “more likely than not” less than its carrying amount, which is commonly referred to as “Step 0”. 3M has chosen not to apply Step 0 for its annual goodwill assessments. |
Intangible assets | Intangible assets: Intangible asset types include customer related, patents, other technology-based, tradenames and other intangible assets acquired from an independent party. Intangible assets with a definite life are amortized over a period ranging from six twelve eight six eleven Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss is recognized when the carrying amount exceeds the estimated undiscounted cash flows from the asset’s or asset group’s ongoing use and eventual disposition. If an impairment is identified, the amount of the impairment loss recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. Intangible assets with an indefinite life, namely certain tradenames, are not amortized. Indefinite-lived intangible assets are tested for impairment annually in the third quarter of each year, and are tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount may be impaired. An impairment loss would be recognized when the fair value is less than the carrying value of the indefinite-lived intangible asset. |
Restructuring actions | Restructuring actions: Restructuring actions generally include significant actions involving employee-related severance charges, contract termination costs, and impairment or accelerated depreciation/amortization 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 when the actions are probable and the amounts are estimable, which typically is when management approves the associated actions. Severance amounts for which affected employees in certain circumstances are 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. |
Revenue (sales) recognition | Revenue (sales) recognition: The Company sells a wide range of products to a diversified base of customers around the world and has no material concentration of credit risk or significant payment terms extended to customers. The vast majority of 3M’s customer arrangements contain a single performance obligation to transfer manufactured goods as the promise to transfer the individual goods is not separately identifiable from other promises in the contracts and, therefore, not distinct. However, to a limited extent 3M also enters into customer arrangements that involve intellectual property out-licensing, multiple performance obligations (such as equipment, installation and service), software with coterminous post-contract support, services and non-standard terms and conditions. The Company recognizes revenue in light of the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers . Revenue is recognized when control of goods has transferred to customers. For the majority of the Company’s customer arrangements, control transfers to customers at a point-in-time when goods/services have been delivered as that is generally when legal title, physical possession and risks and rewards of goods/services transfer to the customer. In limited arrangements, control transfers over time as the customer simultaneously receives and consumes the benefits as 3M completes the performance obligation(s). Revenue is recognized at the transaction price which the Company expects to be entitled. When determining the transaction price, 3M estimates variable consideration applying the portfolio approach practical expedient under ASC 606. The main sources of variable consideration for 3M are customer rebates, trade promotion funds, and cash discounts. These sales incentives are recorded as a reduction to revenue at the time of the initial sale using the most-likely amount estimation method. The most-likely amount method is based on the single most likely outcome from a range of possible consideration outcomes. The range of possible consideration outcomes are primarily derived from the following inputs: sales terms, historical experience, trend analysis, and projected market conditions in the various markets served. Because 3M serves numerous markets, the sales incentive programs offered vary across businesses, but the most common incentive relates to amounts paid or credited to customers for achieving defined volume levels or growth objectives. There are no material instances where variable consideration is constrained and not recorded at the initial time of sale. Free goods are accounted for as an expense and recorded in cost of sales. Product returns are recorded as a reduction to revenue based on anticipated sales returns that occur in the normal course of business. 3M primarily has assurance-type warranties that do not result in separate performance obligations. Sales, use, value-added, and other excise taxes are not recognized in revenue. The Company has elected to present revenue net of sales taxes and other similar taxes. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using 3M’s best estimate of the standalone selling price of each distinct good or service in the contract. The Company did not recognize any material revenue in the current reporting period for performance obligations that were fully satisfied in previous periods. The Company does not have material unfulfilled performance obligation balances for contracts with an original length greater than one year in any years presented. Additionally, the Company does not have material costs related to obtaining a contract with amortization periods greater than one year for any year presented. 3M applies ASC 606 utilizing the following allowable exemptions or practical expedients: • Exemption to not disclose the unfulfilled performance obligation balance for contracts with an original length of one year or less. • Practical expedient relative to costs of obtaining a contract by expensing sales commissions when incurred because the amortization period would have been one year or less. • Portfolio approach practical expedient relative to estimation of variable consideration. • “Right to invoice” practical expedient based on 3M’s right to invoice the customer at an amount that reasonably represents the value to the customer of 3M’s performance completed to date. • Election to present revenue net of sales taxes and other similar taxes. • Sales-based royalty exemption permitting future intellectual property out-licensing royalty payments to be excluded from the otherwise required remaining performance obligations disclosure The Company recognizes revenue from the rental of durable medical devices in accordance with the guidance of ASC 842, Leases . The Company recognizes rental revenue based on the length of time a device is used by the patient/organization, (i) at the contracted rental rate for contracted customers and (ii) generally, retail price for non-contracted customers. The leases are short-term in nature, generally providing for daily or monthly pricing, and are all classified as operating leases. |
Accounts receivable and allowances | Accounts receivable and allowances: Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains allowances for bad debts, cash discounts, and various other items. The allowances for bad debts and cash discounts are based on the best estimate of the amount of expected credit losses in existing accounts receivable and anticipated cash discounts. The Company determines the allowances based on historical write-off experience, current expectations of future credit losses informed by industry and regional economic data, and historical cash discounts. The Company reviews the allowances monthly. The allowances for bad debts as well as the provision for credit losses, write-off activity and recoveries for the periods presented are not material. The Company does not have any significant off-balance-sheet credit exposure related to its customers. The Company has long-term customer receivables that do not have significant credit risk, and the origination dates of which are typically not older than five years. These long-term receivables are subject to an allowance methodology similar to other receivables. |
Advertising and merchandising | Advertising and merchandising: These costs are charged to operations in the period incurred |
Research, development and related expenses | Research, development and related expenses: These costs are charged to operations in the period incurred and are shown on a separate line of the Consolidated Statement of Income. Research, development and related expenses totaled $1.9 billion, $2.0 billion and $1.9 billion in 2022, 2021 and 2020, respectively. Research and development expenses, covering basic scientific research and the application of scientific advances in the development of new and improved products and their uses, totaled $1.1 billion, $1.2 billion and $1.1 billion in 2022, 2021 and 2020, respectively. Related expenses primarily include technical support; internally developed patent costs, which include costs and fees incurred to prepare, file, secure and maintain patents; amortization of externally acquired patents and externally acquired in-process research and development; and gains/losses associated with certain corporate approved investments in R&D-related ventures. |
Internal-use software | Internal-use software: The Company capitalizes direct costs of services used in the development of, and external software acquired for use as, internal-use software. Amounts capitalized are amortized over a period of three |
Environmental | Environmental: Environmental expenditures relating to existing conditions caused by past operations that do not contribute to current or future revenues are expensed. Reserves for liabilities related to anticipated remediation costs are recorded on an undiscounted basis when they are probable and reasonably estimable, generally no later than the completion of feasibility studies, the Company’s commitment to a plan of action, or approval by regulatory agencies. Environmental expenditures for capital projects that contribute to current or future operations generally are capitalized and depreciated over their estimated useful lives. |
Income tax | Income taxes: The provision for income taxes is determined using the asset and liability approach. Under this approach, deferred income taxes represent the expected future tax consequences of temporary differences between the carrying amounts and tax basis of assets and liabilities. The Company records a valuation allowance to reduce its deferred tax assets when uncertainty regarding their realizability exists. As of December 31, 2022 and December 31, 2021, the Company had valuation allowances of $115 million and $142 million on its deferred tax assets, respectively. The Company recognizes and measures its uncertain tax positions based on the rules under ASC 740, Income Taxes . |
Earnings per share | Earnings per share: The difference in the weighted average 3M shares outstanding for calculating basic and diluted earnings per share attributable to 3M common shareholders is the result of the dilution associated with the Company’s stock-based compensation plans. Certain options outstanding under these stock-based compensation plans during the years 2022, 2021 and 2020 were not included in the computation of diluted earnings per share attributable to 3M common shareholders because they would have had an anti-dilutive effect (30.3 million average options for 2022, 7.8 million average options for 2021, and 18.1 million average options for 2020). |
Stock-based compensation | Stock-based compensation: The Company recognizes compensation expense for its stock-based compensation programs, which include stock options, restricted stock, restricted stock units (RSUs), performance shares, and the General Employees’ Stock Purchase Plan (GESPP). Under applicable accounting standards, the fair value of share-based compensation is determined at the grant date and the recognition of the related expense is recorded over the period in which the share-based compensation vests. However, with respect to income taxes, the related deduction from taxes payable is based on the award’s intrinsic value at the time of exercise (for an option) or on the fair value upon vesting of the award (for RSUs), which can be either greater (creating an excess tax benefit) or less (creating a tax deficiency) than the deferred tax benefit recognized as compensation cost is recognized in the financial statements. These excess tax benefits/deficiencies are recognized as income tax benefit/expense in the statement of income and, within the statement of cash flows, are classified in operating activities in the same manner as other cash flows related to income taxes. The extent of excess tax benefits/deficiencies is subject to variation in 3M stock price and timing/extent of RSU vestings and employee stock option exercises. |
Comprehensive income | Comprehensive income: Total comprehensive income and the components of accumulated other comprehensive income (loss) are presented in the Consolidated Statement of Comprehensive Income and the Consolidated Statement of Changes in Equity. Accumulated other comprehensive income (loss) is composed of foreign currency translation effects (including hedges of net investments in international companies), defined benefit pension and postretirement plan adjustments, unrealized gains and losses on available-for-sale debt securities, and unrealized gains and losses on cash flow hedging instruments. The Company uses the portfolio approach for releasing income tax effects from accumulated other comprehensive income. |
Derivatives and hedging activities | Derivatives and hedging activities: All derivative instruments within the scope of ASC 815, Derivatives and Hedging , are recorded on the balance sheet at fair value. The Company uses interest rate swaps, currency swaps, and foreign currency forward and option contracts to manage risks generally associated with foreign exchange rate and interest rate volatility. All hedging instruments that qualify for hedge accounting are designated and effective as hedges, in accordance with U.S. generally accepted accounting principles. If the underlying hedged transaction ceases to exist, all changes in fair value of the related derivatives that have not been settled are recognized in current earnings. Instruments that do not qualify for hedge accounting are marked to market with changes recognized in current earnings. Cash flows from derivative instruments are classified in the statement of cash flows in the same category as the cash flows from the items subject to designated hedge or undesignated (economic) hedge relationships. The Company does not hold or issue derivative financial instruments for trading purposes and is not a party to leveraged derivatives. |
Credit risk | Credit risk: The Company is exposed to credit loss in the event of nonperformance by counterparties in interest rate swaps, currency swaps, and forward and option contracts. However, the Company’s risk is limited to the fair value of the instruments. The Company actively monitors its exposure to credit risk through the use of credit approvals and credit limits, and by selecting major international banks and financial institutions as counterparties. 3M enters into master netting arrangements with counterparties when possible to mitigate credit risk in derivative transactions. A master netting arrangement may allow each counterparty to net settle amounts owed between a 3M entity and the counterparty as a result of multiple, separate derivative transactions. The Company does not anticipate nonperformance by any of these counterparties. 3M has elected to present the fair value of derivative assets and liabilities within the Company’s consolidated balance sheet on a gross basis even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. |
Fair value measurements | Fair value measurements: 3M follows ASC 820, Fair Value Measurements and Disclosures , with respect to assets and liabilities that are measured at fair value on a recurring basis and nonrecurring basis. Under the 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 Company’s 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. |
Acquisitions | Acquisitions: The Company accounts for business acquisitions in accordance with ASC 805, Business Combinations . This standard requires the acquiring entity in a business combination to recognize all (and only) the assets acquired and liabilities assumed in the transaction and establishes the acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed in a business combination. Certain provisions of this standard prescribe, among other things, the determination of acquisition-date fair value of consideration paid in a business combination (including contingent consideration) and the exclusion of transaction and acquisition-related restructuring costs from acquisition accounting. 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. |
Leases | Leases: 3M determines if an arrangement is a lease upon inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The right to control the use of an asset includes the right to obtain substantially all of the economic benefits of the underlying asset and the right to direct how and for what purpose the asset is used. 3M determines certain service agreements that contain the right to use an underlying asset are not leases because 3M does not control how and for what purpose the identified asset is used. Examples of such agreements include master supply agreements, product processing agreements, warehouse and distribution services agreements, power purchase agreements, and transportation purchase agreements. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is 3M’s incremental borrowing rate or, if available, the rate implicit in the lease. 3M determines the incremental borrowing rate for leases using a portfolio approach based primarily on the lease term and the economic environment of the applicable country or region. As a lessee, the Company leases distribution centers, office space, land, and equipment. Certain 3M lease agreements include rental payments adjusted annually based on changes in an inflation index. 3M’s leases do not contain material residual value guarantees or material restrictive covenants. Lease expense is recognized on a straight-line basis over the lease term. Certain leases include one or more options to renew, with terms that can extend the lease term up to five years. 3M includes options to renew the lease as part of the right of use lease asset and liability when it is reasonably certain the Company will exercise the option. In addition, certain leases contain fair value purchase and termination options with an associated penalty. In general, 3M is not reasonably certain to exercise such options. For the measurement and classification of its lease agreements, 3M groups lease and non-lease components into a single lease component for all underlying asset classes. Variable lease payments primarily include payments for non-lease components, such as maintenance costs, payments for leased assets used beyond their noncancellable lease term as adjusted for contractual options to terminate or renew, additional payments related to a subsequent adjustment in an inflation index, and payments for non-components such as sales tax. Certain 3M leases contain immaterial variable lease payments based on number of units produced. |
Business segments | 3M’s businesses are organized, managed and internally grouped into segments based on differences in markets, products, technologies and services. 3M manages its operations in four business segments: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer. 3M’s four 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. In July 2022, 3M announced its intention to spin off the Health Care business as a separate public company (see Note 3 for additional information). Transactions among reportable segments are recorded at cost. 3M is an integrated enterprise characterized by substantial intersegment cooperation, cost allocations and inventory transfers. Therefore, management does not represent that these segments, if operated independently, would report the operating income information shown. 3M discloses business segment operating income as its measure of segment profit/loss, reconciled to both total 3M operating income and income before taxes. Business segment operating income excludes certain expenses and income that are not allocated to business segments (as described below in “Corporate and Unallocated”). Effective in the first quarter of 2022, the measure of segment operating performance used by 3M’s chief operating decision maker (CODM) changed and, as a result, 3M’s disclosed measure of segment profit/loss (business segment operating income (loss) ) was updated. The change to business segment operating income aligns with the update to how the CODM assesses performance and allocates resources for the Company’s business segments. The changes included the items described below. The financial information presented herein reflects the impact of these business segment reporting changes for all periods presented. Effective in the first quarter of 2022: Eliminating inclusion of dual credit in measure of segment operating performance 3M business segment operating performance measures were updated to no longer include dual credit to business segments for certain sales and related operating income. Management previously evaluated its business segments based on net sales and operating income performance, including dual credit reporting. 3M reflected additional (“dual”) credit to another business segment when the customer account activity (“sales district”) with respect to the particular product sold to the external customer was provided by a different business segment. For example, privacy screen protection products are primarily sold by the Display Materials and Systems Division within the Transportation and Electronics business segment; however, certain sales districts within the Consumer business segment provide the customer account activity for sales of the product to particular customers. In this example, the non-primary selling segment (Consumer) previously would also have received credit for the associated net sales initiated through its sales district and the related approximate operating income. The offset to the dual credit business segment reporting was reflected as a reconciling item entitled “Elimination of Dual Credit,” such that sales and operating income in total were unchanged. Reflecting certain litigation-related costs in the Safety and Industrial segment's operating performance measure 3M's business segment operating performance measure with respect to its Safety and Industrial business segment was updated relative to litigation-related costs for non-Aearo and Aearo respirator mask/asbestos litigation matters. Previously, 3M included these costs, when significant, as a special item (as further described below) within Corporate and Unallocated. 3M changed to include all litigation-related costs associated with respirator mask/asbestos litigation matters (along with other Safety and Industrial matters already included therein, such as those related to Combat Arms Earplugs) within the Safety and Industrial business segment. Note, however, that prospectively during the Aearo chapter 11 bankruptcy period (which began in July 2022 — see Note 16) net costs for significant litigation associated with Combat Arms Earplugs and Aearo-respirator mask/asbestos matters are reflected in Corporate and Unallocated. Corporate and Unallocated Corporate and Unallocated operating income includes “corporate special items” and “other corporate expense-net”. Corporate special items include net costs for significant litigation associated with Combat Arms Earplugs and Aearo-respirator mask/asbestos matters during the chapter 11 bankruptcy period (which began in July 2022) and with PFAS-related other environmental matters (see Note 16). Corporate special items also include divestiture costs, gain/loss on business divestitures (see Note 3), divestiture-related restructuring costs (see Note 5), and Russia exit costs (see Note 15). Divestiture costs include costs related to separating and divesting substantially an entire business segment of 3M following public announcement of its intended divestiture. Other corporate expense-net includes items such as net costs related to limited unallocated corporate staff and centrally managed material resource centers of expertise costs, corporate philanthropic activity, and other net costs that 3M may choose not to allocate directly to its business segments. Other corporate expense-net also includes costs and income from transition supply, manufacturing, and service arrangements with Neogen Corporation following the 2022 split-off of 3M's Food Safety business and with the acquirer of the former Drug Delivery business following its 2020 divestiture. Items classified as revenue from this activity are included in Corporate and Unallocated net sales. Because Corporate and Unallocated includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of earnings per share computations | Earnings Per Share Computations (Amounts in millions, except per share amounts) 2022 2021 2020 Numerator: Net income attributable to 3M $ 5,777 $ 5,921 $ 5,449 Denominator: Denominator for weighted average 3M common shares outstanding – basic 566.0 579.0 577.6 Dilution associated with the Company’s stock-based compensation plans 1.6 6.3 4.6 Denominator for weighted average 3M common shares outstanding – diluted 567.6 585.3 582.2 Earnings per share attributable to 3M common shareholders – basic $ 10.21 $ 10.23 $ 9.43 Earnings per share attributable to 3M common shareholders – diluted $ 10.18 $ 10.12 $ 9.36 |
Schedule of new accounting pronouncements | The table below provides summaries of applicable new accounting pronouncements issued, but not yet adopted by 3M: Standards Issued and Not Yet Adopted Standard Relevant Description Effective Date for 3M Impact and Other Matters ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Issued in October 2021. Requires acquiring entities to apply ASC 606 to recognize and measure contract assets and liabilities acquired through a business combination. January 1, 2023 This guidance is applicable to all business combinations occurring after the effective date. ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Obligations Issued in September 2022. Requires a buyer in a supplier finance program to disclose the key terms of the program, amount of outstanding obligations, and a rollforward of obligations confirmed and subsequently paid. January 1, 2023, except rollforward disclosure which is not effective until the year-end December 31, 2024 As this ASU relates to disclosures only, there will be no impact to 3M’s consolidated results of operations and financial condition. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenue recognized during the period | The Company views the following disaggregated disclosures as useful to understanding the composition of revenue recognized during the respective reporting periods: Year ended December 31, Net Sales (Millions) 2022 2021 2020 Abrasives $ 1,343 $ 1,296 $ 1,077 Automotive Aftermarket 1,209 1,164 1,028 Closure and Masking Systems 1,046 1,033 993 Electrical Markets 1,304 1,229 1,093 Industrial Adhesives and Tapes 2,331 2,353 2,000 Personal Safety 3,916 4,470 4,408 Roofing Granules 455 428 389 Other Safety and Industrial — 8 (16) Total Safety and Industrial Business Segment 11,604 11,981 10,972 Advanced Materials 1,205 1,200 1,029 Automotive and Aerospace 1,754 1,756 1,522 Commercial Solutions 1,751 1,717 1,486 Electronics 3,359 3,673 3,497 Transportation Safety 833 907 880 Other Transportation and Electronics — 9 (8) Total Transportation and Electronics Business Segment 8,902 9,262 8,406 Drug Delivery — — 146 Food Safety 244 368 337 Health Information Systems 1,259 1,220 1,140 Medical Solutions 4,581 4,632 4,288 Oral Care 1,353 1,420 1,071 Separation and Purification Sciences 960 956 848 Other Health Care 24 1 2 Total Health Care Business Group 8,421 8,597 7,832 Consumer Health and Safety 569 588 540 Home Care 1,046 1,074 1,043 Home Improvement 2,392 2,548 2,260 Stationery and Office 1,291 1,306 1,132 Other Consumer — (3) 1 Total Consumer Business Group 5,298 5,513 4,976 Corporate and Unallocated 4 2 (2) Total Company $ 34,229 $ 35,355 $ 32,184 Year ended December 31, Net Sales (Millions) 2022 2021 2020 Americas $ 18,400 $ 18,097 $ 16,525 Asia Pacific 9,901 10,600 9,569 Europe, Middle East and Africa 5,928 6,660 6,109 Other Unallocated — (2) (19) Worldwide $ 34,229 $ 35,355 $ 32,184 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | (Millions) Safety and Industrial Transportation and Electronics Health Care Consumer Total Company Balance as of December 31, 2020 $ 4,687 $ 1,858 $ 6,992 $ 265 $ 13,802 Translation and other (65) (33) (206) (12) (316) Balance as of December 31, 2021 $ 4,622 $ 1,825 $ 6,786 $ 253 $ 13,486 Divestiture activity — — (16) — (16) Goodwill impairment — (271) — — (271) Translation and other (113) (53) (255) 12 (409) Balance as of December 31, 2022 $ 4,509 $ 1,501 $ 6,515 $ 265 $ 12,790 |
Schedule of acquired intangible assets | The carrying amount and accumulated amortization of acquired finite-lived intangible assets, in addition to the balance of non-amortizable intangible assets follow: December 31, (Millions) 2022 2021 Customer related intangible assets $ 4,062 $ 4,216 Patents 426 513 Other technology-based intangible assets 2,081 2,111 Definite-lived tradenames 1,166 1,171 Other amortizable intangible assets 84 105 Total gross carrying amount 7,819 8,116 Accumulated amortization — customer related (1,747) (1,616) Accumulated amortization — patents (421) (500) Accumulated amortization — other technology-based (1,000) (839) Accumulated amortization — definite-lived tradenames (509) (447) Accumulated amortization — other (60) (79) Total accumulated amortization (3,737) (3,481) Total finite-lived intangible assets — net 4,082 4,635 Non-amortizable intangible assets (primarily tradenames) 617 653 Total intangible assets — net $ 4,699 $ 5,288 |
Schedule of amortization expense for acquired intangible assets | Amortization expense follows: Year ended December 31, (Millions) 2022 2021 2020 Amortization expense $ 498 $ 529 $ 537 |
Schedule of expected amortization expense for acquired amortizable intangible assets | Expected amortization expense for acquired amortizable intangible assets recorded as of December 31, 2022 follows: (Millions) 2023 2024 2025 2026 2027 After 2027 Amortization expense $ 479 $ 451 $ 421 $ 415 $ 390 $ 1,926 |
Restructuring Actions (Tables)
Restructuring Actions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring and related costs | The related restructuring charges for periods presented were recorded in the income statement as follows: (Millions) 2022 2021 2020 Cost of sales $ — $ 19 $ 51 Selling, general and administrative expenses 12 88 79 Research, development and related expenses 6 17 7 Total operating income impact $ 18 $ 124 $ 137 The business segment operating income impact of these restructuring charges is summarized as follows: 2022 2021 2020 (Millions) Employee-Related Employee-Related Employee Related Asset-Related and Other Total Safety and Industrial $ 2 $ 30 $ 36 $ 7 $ 43 Transportation and Electronics 4 24 16 12 28 Health Care 2 21 23 3 26 Consumer 2 7 10 1 11 Corporate and Unallocated 8 42 16 13 29 Total Operating Expense $ 18 $ 124 $ 101 $ 36 $ 137 (Millions) 2022 Cost of sales $ 3 Selling, general and administrative expenses 36 Research, development and related expenses 2 Total operating income impact $ 41 |
Schedule of restructuring reserve by type of cost | Restructuring actions, including cash and non-cash impacts, follow: (Millions) Employee-Related Asset-Related and Other Total Expense incurred in the fourth quarter of 2020 $ 101 $ 36 $ 137 Non-cash changes — (36) (36) Accrued restructuring action balances as of December 31, 2020 101 — 101 Incremental expense incurred in 2021 124 — 124 Cash payments (127) — (127) Adjustments (11) — (11) Accrued restructuring action balance as of December 31, 2021 87 — 87 Incremental expense incurred in the first quarter of 2022 18 — 18 Cash payments (84) — (84) Adjustments (9) — (9) Accrued restructuring action balances as of June 30, 2022 $ 12 $ — $ 12 Divestiture-related restructuring actions, including cash impacts, follow: (Millions) Employee-Related Expense incurred in the third quarter of 2022 41 Cash payments (31) Accrued restructuring action balances as of December 31, 2022 $ 10 (Millions) 2020 Cost of sales $ 42 Selling, general and administrative expenses 12 Research, development and related expenses 1 Total operating income impact $ 55 Divestiture-related restructuring actions, including cash and non-cash impacts, follow: (Millions) Employee-Related Asset-Related and Other Total Expense incurred in the second quarter of 2020 $ 32 $ 23 $ 55 Non-cash changes — (14) (14) Cash payments (14) — (14) Adjustments (3) — (3) Accrued restructuring action balance as of December 31, 2020 15 9 24 Cash Payments (5) — (5) Adjustments (1) — (1) Accrued restructuring action balance as of June 30, 2021 $ 9 $ 9 $ 18 (Millions) 2020 Cost of sales $ 13 Selling, general and administrative expenses 37 Research, development and related expenses 8 Total operating income impact $ 58 The business segment operating income impact of these restructuring charges is summarized as follows: 2020 ( Millions ) Employee-Related Asset-Related and Other Total Safety and Industrial $ 7 $ — $ 7 Transportation and Electronics 11 — 11 Health Care 12 — 12 Consumer 5 — 5 Corporate and Unallocated — 23 23 Total Operating Expense $ 35 $ 23 $ 58 Restructuring actions, including cash and non-cash impacts, follow: (Millions) Employee-Related Asset-Related Total Expense incurred in the second quarter of 2020 $ 35 $ 23 $ 58 Non-cash changes — (23) (23) Cash payments (2) — (2) Adjustments (9) — (9) Accrued restructuring action balances as of December 31, 2020 24 — 24 Cash Payments (4) — (4) Adjustments (9) — (9) Accrued restructuring action balances as of March 31, 2021 $ 11 $ — $ 11 |
Supplemental Income Statement_2
Supplemental Income Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of other expense (income), net | Other expense (income), net consists of the following: (Millions) 2022 2021 2020 Interest expense $ 462 $ 488 $ 529 Interest income (67) (26) (29) Pension and postretirement net periodic benefit cost (benefit) (248) (297) (134) Total $ 147 $ 165 $ 366 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of supplemental balance sheet information | Additional supplemental balance sheet information is provided in the table that follows. (Millions) 2022 2021 Other current assets Derivative assets-current $ 162 $ 78 Insurance related (receivables, prepaid expenses and other) 103 110 Other 191 151 Total other current assets $ 456 $ 339 Property, plant and equipment - at cost Land $ 255 $ 312 Buildings and leasehold improvements 7,560 8,086 Machinery and equipment 16,455 17,305 Construction in progress 1,728 1,510 Gross property, plant and equipment 25,998 27,213 Accumulated depreciation (16,820) (17,784) Property, plant and equipment - net $ 9,178 $ 9,429 Other assets Deferred income taxes $ 959 $ 581 Prepaid pension and post retirement 1,225 943 Insurance related receivables and other 73 51 Cash surrender value of life insurance policies 265 261 Equity method investments 81 129 Equity and other investments 886 133 Other 782 510 Total other assets $ 4,271 $ 2,608 Other current liabilities Accrued rebates $ 751 $ 731 Deferred revenue 538 529 Derivative liabilities 31 23 Employee benefits and withholdings 247 219 Contingent liability claims and other 534 487 Property, sales-related and other taxes 224 326 Pension and postretirement benefits 77 78 Other 788 798 Total other current liabilities $ 3,190 $ 3,191 Other liabilities Long term income taxes payable $ 1,051 $ 1,324 Employee benefits 386 400 Contingent liability claims and other 2,179 872 Finance lease obligations 75 93 Deferred income taxes 559 458 Other 1,365 256 Total other liabilities $ 5,615 $ 3,403 |
Supplemental Equity and Compr_2
Supplemental Equity and Comprehensive Income Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) attributable to 3M | Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component (Millions) Cumulative Translation Adjustment Defined Benefit Pension and Postretirement Plans Adjustment Cash Flow Hedging Instruments, Unrealized Gain (Loss) Total Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2019, net of tax: $ (1,899) $ (6,204) $ (31) $ (8,134) Other comprehensive income (loss), before tax: Amounts before reclassifications 387 (582) (113) (308) Amounts reclassified out — 619 (71) 548 Total other comprehensive income (loss), before tax 387 37 (184) 240 Tax effect 62 69 42 173 Total other comprehensive income (loss), net of tax 449 106 (142) 413 Balance at December 31, 2020, net of tax: (1,450) (6,098) (173) (7,721) Other comprehensive income (loss), before tax: Amounts before reclassifications (428) 1,223 108 903 Amounts reclassified out — 658 47 705 Total other comprehensive income (loss), before tax (428) 1,881 155 1,608 Tax effect (65) (536) (36) (637) Total other comprehensive income (loss), net of tax (493) 1,345 119 971 Balance at December 31, 2021, net of tax: $ (1,943) $ (4,753) $ (54) $ (6,750) Other comprehensive income (loss), before tax: Amounts before reclassifications (850) 866 159 175 Amounts reclassified out — 458 (98) 360 Total other comprehensive income (loss), before tax (850) 1,324 61 535 Tax effect (35) (409) (14) (458) Total other comprehensive income (loss), net of tax (885) 915 47 77 Balance at December 31, 2022, net of tax: $ (2,828) $ (3,838) $ (7) $ (6,673) |
Schedule of reclassifications out of accumulated other comprehensive income | Reclassifications out of Accumulated Other Comprehensive Income Attributable to 3M Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Location on Income Statement Year ended December 31, (Millions) 2022 2021 2020 Defined benefit pension and postretirement plans adjustments Gains (losses) associated with defined benefit pension and postretirement plans amortization Transition asset $ (2) $ (2) $ (2) Other (expense) income, net Prior service benefit 55 60 62 Other (expense) income, net Net actuarial loss (493) (689) (659) Other (expense) income, net Curtailments/Settlements (18) (27) (20) Other (expense) income, net Total before tax (458) (658) (619) Tax effect 108 160 148 Provision for income taxes Net of tax (350) (498) (471) Cash flow hedging instruments gains (losses) Foreign currency forward/option contracts 107 (38) 80 Cost of sales Interest rate contracts (9) (9) (9) Interest expense Total before tax 98 (47) 71 Tax effect (23) 11 (17) Provision for income taxes Net of tax 75 (36) 54 Total reclassifications for the period, net of tax $ (275) $ (534) $ (417) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of supplemental cash flow information | (Millions) 2022 2021 2020 Cash income tax payments, net of refunds $ 1,320 $ 1,695 $ 1,351 Cash interest payments 440 472 524 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income taxes | Income Before Income Taxes (Millions) 2022 2021 2020 United States $ 3,861 $ 3,716 $ 3,795 International 2,531 3,488 3,000 Total $ 6,392 $ 7,204 $ 6,795 |
Schedule of provision for income taxes | Provision for Income Taxes (Millions) 2022 2021 2020 Currently payable Federal $ 606 $ 756 $ 720 State 76 104 123 International 621 597 632 Deferred Federal (612) (219) (44) State (76) (25) (17) International (2) 72 (77) Total $ 612 $ 1,285 $ 1,337 |
Schedule of components of deferred tax assets and liabilities | Components of Deferred Tax Assets and Liabilities (Millions) 2022 2021 Deferred tax assets: Accruals not currently deductible Employee benefit costs $ 232 $ 237 Product and other claims 610 257 Miscellaneous accruals 117 157 Pension costs 7 351 Stock-based compensation 259 249 Advanced payments 173 286 Net operating/capital loss/state tax credit carryforwards 120 120 Foreign tax credits 112 115 Research and experimentation capitalization 418 — Lease liabilities 210 219 Product and other insurance receivables — 48 Inventory 95 68 Other — 31 Gross deferred tax assets 2,353 2,138 Valuation allowance (115) (142) Total deferred tax assets 2,238 1,996 Deferred tax liabilities: Product and other insurance receivables (3) — Accelerated depreciation (586) (665) Intangible assets (901) (985) Currency translation (69) — Right-of-use asset (210) (222) Other (69) — Total deferred tax liabilities (1,838) (1,872) Net deferred tax assets $ 400 $ 124 |
Schedule of reconciliation of effective income tax rate | Reconciliation of Effective Income Tax Rate 2022 2021 2020 Statutory U.S. tax rate 21.0 % 21.0 % 21.0 % Food Safety divestiture (8.4) — — State income taxes - net of federal benefit — 0.9 1.2 International income taxes - net (0.4) (1.2) (1.2) Global Intangible Low Taxed Income (GILTI) 0.7 0.7 0.8 Foreign Derived Intangible Income (FDII) (2.3) (3.1) (1.8) U.S. research and development credit (1.0) (0.7) (1.0) Reserves for tax contingencies — 0.6 0.5 Employee share-based payments (0.2) (0.6) (0.5) All other - net 0.2 0.2 0.7 Effective worldwide tax rate 9.6 % 17.8 % 19.7 % |
Schedule of reconciliation of federal, state and foreign tax gross unrecognized tax benefits | Federal, State and Foreign Tax (Millions) 2022 2021 2020 Gross UTB Balance at January 1 $ 1,071 $ 1,113 $ 1,167 Additions based on tax positions related to the current year 115 91 74 Additions for tax positions of prior years 36 22 106 Additions related to recent acquisitions — — — Reductions for tax positions of prior years (138) (60) (173) Settlements (118) (57) (8) Reductions due to lapse of applicable statute of limitations (39) (38) (53) Gross UTB Balance at December 31 $ 927 $ 1,071 $ 1,113 Net UTB that would impact the effective tax rate at December 31 $ 965 $ 1,112 $ 1,145 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Securities, Available-for-Sale [Abstract] | |
Schedule of marketable securities | The following is a summary of amounts recorded on the Consolidated Balance Sheet for marketable securities (current and non-current). (Millions) 2022 2021 Commercial paper $ 213 $ 109 Certificates of deposit/time deposits 21 14 U.S. treasury securities — 75 U.S. municipal securities 4 3 Current marketable securities 238 201 U.S. municipal securities 23 27 Non-current marketable securities 23 27 Total marketable securities $ 261 $ 228 |
Schedule of marketable securities by contractual maturity | The balances at December 31, 2022 for marketable securities by contractual maturity are shown below. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. (Millions) 2022 Due in one year or less $ 238 Due after one year through five years 15 Due after five years through ten years 8 Total marketable securities $ 261 |
Long-Term Debt and Short-Term_2
Long-Term Debt and Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | Long-term debt and short-term borrowings as of December 31 consisted of the following: Long-Term Debt (Millions) Currency/ Fixed vs. Floating Effective Interest Rate Final Maturity Date Carrying Value Description / 2022 Principal Amount 2022 2021 Medium-term note (repaid in 2022) EUR Fixed — % 2022 — 567 Medium-term note (repaid in 2022) USD Fixed — % 2022 — 599 Registered note ($500 million) USD Fixed 1.86 % 2023 500 499 Medium-term note ($650 million) USD Fixed 2.26 % 2023 650 649 Medium-term note (€600 million) EUR Fixed 1.14 % 2023 639 679 Medium-term note ($300 million) USD Fixed 3.30 % 2024 300 299 Medium-term note ($500 million) USD Fixed 2.98 % 2024 501 501 Medium-term note ($300 million) USD Floating 4.81 % 2024 300 300 Registered note ($750 million) USD Fixed 2.12 % 2025 747 746 Registered note ($500 million) USD Fixed 2.67 % 2025 499 498 Medium-term note ($550 million) USD Fixed 3.04 % 2025 549 548 Medium-term note ($650 million) USD Fixed 2.37 % 2026 646 645 Medium-term note (€750 million) EUR Fixed 1.65 % 2026 792 842 Floating rate note ($19 million) USD Floating 4.37 % 2027 18 19 Medium-term note ($850 million) USD Fixed 2.95 % 2027 845 844 30-year debenture ($220 million) USD Fixed 6.44 % 2028 223 224 Floating rate note ($150 million) USD Floating 6.49 % 2028 129 147 Floating rate note ($150 million) USD Floating 6.44 % 2028 129 147 Floating rate note ($250 million) USD Floating 6.69 % 2028 211 240 Floating rate note ($150 million) USD Floating 6.64 % 2028 127 144 Floating rate note ($100 million) USD Floating 6.73 % 2028 84 96 Medium-term note ($600 million) USD Fixed 3.62 % 2028 598 598 Medium-term note ($800 million) USD Fixed 3.38 % 2029 797 797 Registered note ($1 billion) USD Fixed 2.50 % 2029 989 988 Registered note ($600 million) USD Fixed 3.09 % 2030 596 596 Medium-term note (€500 million) EUR Fixed 1.90 % 2030 526 560 Medium-term note (€500 million) EUR Fixed 1.54 % 2031 530 563 30-year bond ($555 million) USD Fixed 5.73 % 2037 552 551 Floating rate note ($52 million) USD Floating 4.16 % 2040 52 52 Floating rate note ($96 million) USD Floating 4.16 % 2041 96 96 Medium-term note ($325 million) USD Fixed 4.05 % 2044 315 315 Floating rate note ($54 million) USD Floating 4.16 % 2044 53 53 Medium-term note ($500 million) USD Fixed 3.37 % 2046 478 477 Medium-term note ($500 million) USD Fixed 3.68 % 2047 492 492 Medium-term note ($650 million) USD Fixed 4.07 % 2048 638 638 Medium-term note ($500 million) USD Fixed 3.78 % 2048 504 505 Registered note ($500 million) USD Fixed 3.37 % 2049 486 485 Registered note ($350 million) USD Fixed 3.72 % 2050 346 346 Other borrowings Various 0.09 % 2023-2029 2 2 Total long-term debt 15,939 17,347 Less: current portion of long-term debt 1,938 1,291 Long-term debt (excluding current portion) $ 14,001 $ 16,056 |
Schedule of post swap borrowing total long term debt by fixed or floating rate | Post-Swap Borrowing (Long-Term Debt, Including Current Portion) 2022 2021 (Millions) Carrying Value Effective Interest Rate Carrying Value Effective Interest Rate Fixed-rate debt $ 14,738 2.93 % $ 16,053 2.80 % Floating-rate debt 1,201 5.70 % 1,294 1.43 % Total long-term debt, including current portion $ 15,939 $ 17,347 |
Schedule of short-term debt | Short-Term Borrowings and Current Portion of Long-Term Debt Effective Interest Rate Carrying Value (Millions) 2022 2021 Current portion of long-term debt 1.93 % $ 1,938 $ 1,291 Other borrowings — % — 16 Total short-term borrowings and current portion of long-term debt $ 1,938 $ 1,307 |
Schedule of maturities of long-term debt | The maturities of long-term debt for the periods subsequent to December 31, 2022 are as follows (in millions): 2023 2024 2025 2026 2027 After 2027 Total $ 1,938 $ 1,100 $ 1,865 $ 1,438 $ 845 $ 8,753 $ 15,939 |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of reconciliation of the beginning and ending balances of the benefit obligation and the fair value of plan assets | The following tables include a reconciliation of the beginning and ending balances of the benefit obligation and the fair value of plan assets as well as a summary of the related amounts recognized in the Company’s consolidated balance sheet as of December 31 of the respective years. 3M also has certain non-qualified unfunded pension and postretirement benefit plans, inclusive of plans related to supplement/excess benefits for employees impacted by particular relocations and other matters, that individually and in the aggregate are not significant and which are not included in the tables that follow. The obligations for these plans are included within other liabilities in the Company’s consolidated balance sheet and aggregated to less than $51 million as of December 31, 2022 and 2021. Qualified and Non-Pension Benefits Postretirement Benefits United States International (Millions) 2022 2021 2022 2021 2022 2021 Change in benefit obligation Benefit obligation at beginning of year $ 18,104 $ 19,376 $ 7,942 $ 8,770 $ 2,281 $ 2,397 Acquisitions/Transfers — — — — — — Service cost 256 286 128 164 42 53 Interest cost 417 360 125 98 52 43 Participant contributions — — 7 10 — — Foreign exchange rate changes — — (567) (325) 1 (4) Plan amendments — — 8 1 — — Actuarial (gain) loss (3,777) (588) (2,240) (433) (458) (89) Benefit payments (1,495) (1,330) (266) (298) (115) (113) Settlements, curtailments, special termination benefits and other — — (65) (45) (6) (6) Benefit obligation at end of year $ 13,505 $ 18,104 $ 5,072 $ 7,942 $ 1,797 $ 2,281 Change in plan assets Fair value of plan assets at beginning of year 16,953 17,127 8,016 8,194 1,353 1,376 Acquisitions/Transfers — — — — — — Actual return on plan assets (2,875) 1,079 (1,286) 321 (218) 93 Company contributions 65 77 90 100 3 3 Participant contributions — — 7 10 — — Foreign exchange rate changes — — (602) (265) — — Benefit payments (1,495) (1,330) (266) (298) (115) (113) Settlements, curtailments, special termination benefits and other — — (68) (46) (6) (6) Fair value of plan assets at end of year $ 12,648 $ 16,953 $ 5,891 $ 8,016 $ 1,017 $ 1,353 Funded status at end of year $ (857) $ (1,151) $ 819 $ 74 $ (780) $ (928) |
Schedule of amounts recognized in balance sheet | Amounts recognized in the Consolidated Balance Sheet as of December 31, (Millions) Qualified and Non-qualified Pension Benefits Postretirement Benefits United States International 2022 2021 2022 2021 2022 2021 Non-current assets $ — $ — $ 1,225 $ 943 $ — $ — Accrued benefit cost Current liabilities (52) (59) (14) (14) (11) (5) Non-current liabilities (805) (1,092) (392) (855) (769) (923) Ending balance $ (857) $ (1,151) $ 819 $ 74 $ (780) $ (928) |
Schedule of amounts recognized in other comprehensive income (loss) | Amounts recognized in accumulated other comprehensive income as of December 31, (Millions) Qualified and Non-qualified Pension Benefits Postretirement Benefits United States International 2022 2021 2022 2021 2022 2021 Net transition obligation (asset) $ — $ — $ 4 $ 6 $ — $ — Net actuarial loss (gain) 4,616 4,991 157 960 332 538 Prior service cost (credit) (56) (80) 10 3 (166) (197) Ending balance $ 4,560 $ 4,911 $ 171 $ 969 $ 166 $ 341 |
Schedule of defined benefit plan, plan with accumulated benefit obligation in excess of plan assets | The following table summarizes the total accumulated benefit obligations, the accumulated benefit obligations and fair value of plan assets for defined benefit pension plans with accumulated benefit obligations in excess of plan assets, and the projected benefit obligation and fair value of plan assets for defined benefit pension plans with projected benefit obligation in excess of plan assets as of December 31: Qualified and Non-qualified Pension Plans United States International (Millions) 2022 2021 2022 2021 Accumulated benefit obligation $ 12,967 $ 17,305 $ 4,814 $ 7,484 Plans with accumulated benefit obligation in excess of plan assets Accumulated benefit obligation $ 402 $ 514 $ 775 $ 2,843 Fair value of plan assets — — 427 2,194 Plans with projected benefit obligation in excess of plan assets Projected benefit obligation $ 13,505 $ 18,104 $ 851 $ 3,204 Fair value of plan assets 12,648 16,953 442 2,335 |
Schedule of net periodic benefit cost (benefit) | Components of net periodic benefit cost and other supplemental information for the years ended December 31 follow: Qualified and Non-qualified Pension Benefits Postretirement Benefits United States International (Millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Net periodic benefit cost (benefit) Operating expense Service cost $ 256 $ 286 $ 261 $ 128 $ 164 $ 152 $ 42 $ 53 $ 43 Non-operating expense Interest cost 417 360 499 125 98 117 52 43 62 Expected return on plan assets (963) (1,055) (1,046) (271) (326) (306) (72) (78) (80) Amortization of transition asset — — — 2 2 2 — — — Amortization of prior service benefit (24) (24) (24) — (3) (5) (31) (33) (33) Amortization of net actuarial loss 424 529 491 29 104 121 40 56 47 Settlements, curtailments, special termination benefits and other 12 24 16 10 3 1 2 3 3 Total non-operating expense (benefit) (134) (166) (64) (105) (122) (70) (9) (9) (1) Total net periodic benefit cost (benefit) $ 122 $ 120 $ 197 $ 23 $ 42 $ 82 $ 33 $ 44 $ 42 Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss Amortization of transition asset $ — $ — $ — $ (2) $ (2) $ (2) $ — $ — $ — Prior service cost (benefit) — — — 8 1 — — — — Amortization of prior service benefit 24 24 24 — 3 5 31 33 33 Net actuarial (gain) loss 61 (614) 760 (689) (434) (358) (166) (104) 108 Amortization of net actuarial loss (424) (529) (491) (29) (104) (121) (40) (56) (47) Foreign currency — — — (82) (71) 79 2 (1) (7) Settlements, curtailments, special termination benefits and other (12) (23) (16) (4) (1) (1) (2) (3) (3) Total recognized in other comprehensive (income) loss $ (351) $ (1,142) $ 277 $ (798) $ (608) $ (398) $ (175) $ (131) $ 84 Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss $ (229) $ (1,022) $ 474 $ (775) $ (566) $ (316) $ (142) $ (87) $ 126 |
Schedule of defined benefit plan, assumptions | Weighted-average assumptions used to determine benefit obligations as of December 31 Qualified and Non-qualified Pension Benefits Postretirement Benefits United States International 2022 2021 2020 2022 2021 2020 2022 2021 2020 Discount rate 5.18 % 2.89 % 2.55 % 4.39 % 1.80 % 1.38 % 5.25 % 2.88 % 2.50 % Compensation rate increase 3.37 % 3.21 % 3.21 % 2.86 % 2.86 % 2.88 % N/A N/A N/A Weighted-average assumptions used to determine net cost for years ended December 31 Qualified and Non-qualified Pension Benefits Postretirement Benefits United States International 2022 2021 2020 2022 2021 2020 2022 2021 2020 Discount rate - service cost 3.10 % 2.81 % 3.41 % 1.64 % 1.23 % 1.61 % 3.11 % 3.21 % 3.45 % Discount rate - interest cost 2.38 % 1.92 % 2.87 % 1.62 % 1.13 % 1.61 % 2.59 % 2.20 % 3.00 % Expected return on assets 6.00 % 6.50 % 6.75 % 3.86 % 4.36 % 4.70 % 5.77 % 6.15 % 6.32 % Compensation rate increase 3.21 % 3.21 % 3.21 % 2.86 % 2.88 % 2.88 % N/A N/A N/A |
Schedule of expected benefit payments | Future Pension and Postretirement Benefit Payments The following table provides the estimated pension and postretirement benefit payments that are payable from the plans to participants. Qualified and Non-qualified Pension Benefits Postretirement Benefits (Millions) United States International 2023 Benefit Payments $ 1,057 $ 262 $ 142 2024 Benefit Payments 1,061 269 145 2025 Benefit Payments 1,065 284 148 2026 Benefit Payments 1,061 295 150 2027 Benefit Payments 1,059 307 154 Next five years 5,155 1,614 726 |
Schedule of allocation of plan assets | The fair values of the assets held by the U.S. pension plans by asset class are as follows: Fair Value Measurements Using Inputs Considered as Fair Value at December 31, Level 1 Level 2 Level 3 Asset Class (Millions) 2022 2021 2022 2021 2022 2021 2022 2021 Equities U.S. equities $ 501 $ 1,875 $ — $ — $ — $ — $ 501 $ 1,875 Non-U.S. equities 370 1,465 — — — — 370 1,465 Index and long/short equity funds* 271 404 Total Equities 871 3,340 — — — — 1,142 3,744 Fixed Income U.S. government securities 1,344 1,417 29 716 — — 1,373 2,133 Non-U.S. government securities — — 70 89 — — 70 89 Preferred and convertible securities — — 44 54 — — 44 54 U.S. corporate bonds — 11 4,789 4,620 — — 4,789 4,631 Non-U.S. corporate bonds — — 871 883 — — 871 883 Derivative instruments 10 11 — 6 — — 10 17 Other* 91 132 Total Fixed Income 1,354 1,439 5,803 6,368 — — 7,248 7,939 Private Equity Growth equity — 58 — — — — — 58 Partnership investments* 1,700 2,003 Total Private Equity — 58 — — — — 1,700 2,061 Absolute Return Fixed income and other 1 1 85 166 — — 86 167 Hedge fund/fund of funds* 1,297 1,943 Partnership investments* 497 617 Total Absolute Return 1 1 85 166 — — 1,880 2,727 Cash and Cash Equivalents Cash and cash equivalents 8 11 22 9 — — 30 20 Repurchase agreements and derivative margin activity — — (1) — — — (1) — Cash and cash equivalents, valued at net asset value* 789 678 Total Cash and Cash Equivalents 8 11 21 9 — — 818 698 Total $ 2,234 $ 4,849 $ 5,909 $ 6,543 $ — $ — $ 12,788 $ 17,169 Other items to reconcile to fair value of plan assets (140) (216) Fair value of plan assets $ 12,648 $ 16,953 * In accordance with ASC 820-10, certain investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities then divided by the number of units outstanding and is determined by the investment manager or custodian of the fund. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets. The fair values of the assets held by the postretirement benefit plans by asset class are as follows: Fair Value Measurements Using Inputs Considered as Fair Value at December 31, Level 1 Level 2 Level 3 Asset Class (Millions) 2022 2021 2022 2021 2022 2021 2022 2021 Equities U.S. equities $ 145 $ 292 $ — $ — $ — $ — $ 145 $ 292 Non-U.S. equities 23 80 — — — — 23 80 Index and long/short equity funds* 16 28 Total Equities 168 372 — — — — 184 400 Fixed Income U.S. government securities 96 109 73 180 — — 169 289 Non-U.S. government securities — — 5 7 — — 5 7 U.S. corporate bonds — 1 322 291 — — 322 292 Non-U.S. corporate bonds — — 61 59 — — 61 59 Other* 5 7 Total Fixed Income 96 110 461 537 — — 562 654 Private Equity Growth equity — 3 — — — — — 3 Partnership investments* 99 107 Total Private Equity — 3 — — — — 99 110 Absolute Return Fixed income and other — — 5 9 — — 5 9 Hedge fund/fund of funds* 76 102 Partnership investments* 29 32 Total Absolute Return — — 5 9 — — 110 143 Cash and Cash Equivalents Cash and cash equivalents 21 20 1 — — — 22 20 Cash and cash equivalents, valued at net asset value* 46 36 Total Cash and Cash Equivalents 21 20 1 — — — 68 56 Total $ 285 $ 505 $ 467 $ 546 $ — $ — $ 1,023 $ 1,363 Other items to reconcile to fair value of plan assets (6) (10) Fair value of plan assets $ 1,017 $ 1,353 *In accordance with ASC 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities then divided by the number of units outstanding and is determined by the investment manager or custodian of the fund. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets. The fair values of the assets held by the international pension plans by asset class are as follows: Fair Value Measurements Using Inputs Considered as Fair Value at December 31, Level 1 Level 2 Level 3 Asset Class (Millions) 2022 2021 2022 2021 2022 2021 2022 2021 Equities Growth equities $ 59 $ 315 $ 99 $ 181 $ — $ — $ 158 $ 496 Value equities 164 328 11 15 — — 175 343 Core equities 65 107 142 547 2 5 209 659 Equities, valued at net asset value* 1 2 Total Equities 288 750 252 743 2 5 543 1,500 Fixed Income Domestic government 73 73 1,060 1,039 3 4 1,136 1,116 Foreign government 29 22 327 458 — — 356 480 Corporate debt securities 32 32 2,155 2,389 1 10 2,188 2,431 Fixed income securities, valued at net asset value* 623 893 Total Fixed Income 134 127 3,542 3,886 4 14 4,303 4,920 Private Equity Real estate 2 2 50 58 2 5 54 65 Real estate, valued at net asset value* 119 163 Partnership investments* 265 226 Total Private Equity 2 2 50 58 2 5 438 454 Absolute Return Derivatives — — 1 20 — — 1 20 Insurance — — — — 438 504 438 504 Other 8 7 — — 1 6 9 13 Other, valued at net asset value* — — Hedge funds* 259 535 Total Absolute Return 8 7 1 20 439 510 707 1,072 Cash and Cash Equivalents Cash and cash equivalents 122 145 51 46 — — 173 191 Cash and cash equivalents, valued at net asset value* 2 1 Total Cash and Cash Equivalents 122 145 51 46 — — 175 192 Total $ 554 $ 1,031 $ 3,896 $ 4,753 $ 447 $ 534 $ 6,166 $ 8,138 Other items to reconcile to fair value of plan assets (275) (122) Fair value of plan assets $ 5,891 $ 8,016 *In accordance with ASC 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities then divided by the number of units outstanding and is determined by the investment manager or custodian of the fund. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of gains (losses) on derivative instruments designated as hedges | The amount of pretax gain (loss) recognized in other comprehensive income related to derivative instruments designated as cash flow hedges is provided in the following table. Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Millions) 2022 2021 2020 Foreign currency forward/option contracts $ 159 $ 108 $ (111) Interest rate contracts — — (2) Total $ 159 $ 108 $ (113) |
Schedule of gain (loss) on derivative instruments designated as fair value hedges | The following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for active fair value hedges, as well as remaining amounts for discontinued fair value hedges: (Millions) Carrying Value of the Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities Location on the Consolidated Balance Sheet 2022 2021 2022 2021 Long-term debt $ 903 $ 997 $ (98) $ (4) |
Schedule of gain (loss) on derivative and non-derivative instruments designated as net investment hedges | Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income (Millions) 2022 2021 2020 Foreign currency denominated debt $ 162 $ 296 $ (351) Foreign currency forward contracts 10 8 (1) Total $ 172 $ 304 $ (352) |
Schedule of location in consolidated statement of income and pre-tax amounts recognized in income related to derivative instruments designated in cash flow or fair value hedging relationship | The location in the consolidated statement of income and pre-tax amounts recognized in income related to derivative instruments designated in cash flow or fair value hedging relationships and for derivatives not designated as hedging instruments are as follows: Location and Amount of Gain (Loss) Recognized in Income Cost of sales Other expense (income), net (Millions) 2022 2021 2020 2022 2021 2020 Information regarding cash flow and fair value hedging relationships: Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of derivatives are recorded $ 19,232 $ 18,795 $ 16,605 $ 147 $ 165 $ 366 Gain or (loss) on cash flow hedging relationships: Foreign currency forward/option contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income 107 (38) 80 — — — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — — — (9) (9) (9) Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items — — — 94 16 4 Derivatives designated as hedging instruments — — — (94) (16) (4) Information regarding derivatives not designated as hedging instruments: Gain or (loss) on derivatives not designated as instruments: Foreign currency forward/option contracts (76) 5 2 45 (11) 43 |
Schedule of location and fair value of derivative instruments | The following tables summarize the fair value of 3M’s derivative instruments, excluding nonderivative instruments used as hedging instruments, and their location in the consolidated balance sheet. Notional amounts below are presented at period end foreign exchange rates, except for certain interest rate swaps, which are presented using the inception date’s foreign exchange rate. Gross Notional Amount Assets Liabilities (Millions) Location Fair Value Amount Location Fair Value Amount 2022 2021 2022 2021 2022 2021 Derivatives designated as hedging instruments Foreign currency forward/option contracts $ 2,368 $ 1,768 Other current assets $ 89 $ 54 Other current liabilities $ 27 $ 19 Foreign currency forward/option contracts 835 800 Other assets 55 41 Other liabilities 9 1 Interest rate contracts 800 800 Other assets — — Other liabilities 102 9 Total derivatives designated as hedging instruments 144 95 138 29 Derivatives not designated as hedging instruments Foreign currency forward/option contracts 2,816 3,731 Other current assets 73 24 Other current liabilities 4 4 Total derivatives not designated as hedging instruments 73 24 4 4 Total derivative instruments $ 217 $ 119 $ 142 $ 33 |
Schedule of offsetting assets | Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements Gross Amount of Eligible Offsetting Recognized Derivative Liabilities Cash Collateral Received Net Amount of Derivative Assets (Millions) 2022 2021 2022 2021 2022 2021 2022 2021 Derivatives subject to master netting agreements $ 217 $ 119 $ 40 $ 25 $ — $ — $ 177 $ 94 Derivatives not subject to master netting agreements — — — — Total $ 217 $ 119 $ 177 $ 94 |
Schedule of offsetting liabilities | Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements Gross Amount of Eligible Offsetting Recognized Derivative Assets Cash Collateral Received Net Amount of Derivative Liabilities (Millions) 2022 2021 2022 2021 2022 2021 2022 2021 Derivatives subject to master netting agreements $ 142 $ 33 $ 40 $ 25 $ — $ — $ 102 $ 8 Derivatives not subject to master netting agreements — — — — Total $ 142 $ 33 $ 102 $ 8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, assets and liabilities measured on recurring basis | The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis. Fair Value at Fair Value Measurements Using Inputs Considered as Level 1 Level 2 Level 3 Description (Millions) 2022 2021 2022 2021 2022 2021 2022 2021 Assets: Available-for-sale: Marketable securities: Commercial paper $ 213 $ 109 $ — $ — $ 213 $ 109 $ — $ — Certificates of deposit/time deposits 21 14 — — 21 14 — — U.S. treasury securities — 75 — 75 — — — — U.S. municipal securities 27 30 — — — — 27 30 Derivative instruments — assets: Foreign currency forward/option contracts 217 119 — — 217 119 — — Liabilities: Derivative instruments — liabilities: Foreign currency forward/option contracts 40 24 — — 40 24 — — Interest rate contracts 102 9 — — 102 9 — — |
Schedule of fair value, assets measured on recurring basis, unobservable input reconciliation | The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis in the table above that used significant unobservable inputs (level 3). Marketable securities — certain U.S. municipal securities only (Millions) 2022 2021 2020 Beginning balance $ 30 $ 34 $ 46 Total gains or losses: Included in earnings — — — Included in other comprehensive income — — — Purchases and issuances — — 10 Sales and settlements (3) (4) (22) Transfers in and/or out of level 3 — — — Ending balance $ 27 $ 30 $ 34 Change in unrealized gains or losses for the period included in earnings for securities held at the end of the reporting period — — — |
Schedule of fair value of financial instruments by balance sheet grouping | Information with respect to the carrying amounts and estimated fair values of these financial instruments follow: 2022 2021 (Millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, excluding current portion $ 14,001 $ 12,484 $ 16,056 $ 17,601 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of components of lease expense, supplemental cash flow and other information related to leases | The components of lease expense are as follows: (Millions) 2022 2021 2020 Operating lease cost $ 295 $ 319 $ 348 Finance lease cost: Amortization of assets 15 15 21 Interest on lease liabilities 2 2 1 Variable lease cost 135 127 101 Total net lease cost $ 447 $ 463 $ 471 Supplemental cash flow and other information related to leases is as follows: (Millions) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 295 $ 317 $ 326 Operating cash flows from finance leases 2 2 1 Financing cash flows from finance leases 25 19 58 Right of use assets obtained in exchange for lease liabilities: Operating leases 261 342 250 Finance leases 6 3 18 |
Schedule of supplemental balance sheet information | Supplemental balance sheet information related to leases is as follows: (Millions unless noted) Location on face of Balance Sheet 2022 2021 Operating leases: Operating lease right of use assets Operating lease right of use assets $ 829 $ 858 Current operating lease liabilities Operating lease liabilities - current 261 263 Noncurrent operating lease liabilities Operating lease liabilities 580 591 Total operating lease liabilities 841 854 Finance leases: Property and equipment, at cost Property, plant and equipment 218 223 Accumulated amortization Property, plant and equipment (accumulated depreciation) (126) (117) Property and equipment, net 92 106 Current obligations of finance leases Other current liabilities 11 7 Finance leases, net of current obligations Other liabilities 75 93 Total finance lease liabilities $ 86 $ 100 Weighted average remaining lease term (in years): Operating leases 5.5 5.5 Finance leases 6.3 6.6 Weighted average discount rate: Operating leases 2.2 % 1.8 % Finance leases 3.1 % 3.3 % |
Schedule of maturities of operating lease liabilities | Maturities of lease liabilities were as follows: December 31, 2022 (Millions) Finance Leases Operating Leases 2023 $ 19 $ 268 2024 18 192 2025 11 131 2026 9 83 2027 7 55 After 2027 26 162 Total 90 891 Less: Amounts representing interest 4 50 Present value of future minimum lease payments 86 841 Less: Current obligations 11 261 Long-term obligations $ 75 $ 580 |
Schedule of maturities of finance lease liabilities | Maturities of lease liabilities were as follows: December 31, 2022 (Millions) Finance Leases Operating Leases 2023 $ 19 $ 268 2024 18 192 2025 11 131 2026 9 83 2027 7 55 After 2027 26 162 Total 90 891 Less: Amounts representing interest 4 50 Present value of future minimum lease payments 86 841 Less: Current obligations 11 261 Long-term obligations $ 75 $ 580 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | Stock-Based Compensation Expense (Millions) 2022 2021 2020 Cost of sales $ 48 $ 47 $ 50 Selling, general and administrative expenses 169 185 169 Research, development and related expenses 46 42 43 Stock-based compensation expenses 263 274 262 Income tax benefits (62) (100) (82) Stock-based compensation expenses (benefits), net of tax $ 201 $ 174 $ 180 |
Schedule of stock option activity | The following table summarizes stock option activity during the year ended December 31: 2022 2021 2020 (Options in thousands) Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Under option — January 1 34,560 $ 163.52 35,401 $ 156.23 33,675 $ 151.15 Granted 3,776 162.39 3,612 175.04 4,777 157.25 Exercised (2,101) 98.91 (4,163) 110.20 (2,759) 93.23 Forfeited (729) 176.21 (290) 182.63 (292) 181.33 December 31 35,506 166.97 34,560 163.52 35,401 156.23 Options exercisable December 31 28,210 $ 167.42 26,956 $ 161.25 27,537 $ 149.67 |
Schedule of stock option assumptions | Stock Option Assumptions Annual 2022 2021 2020 Exercise price $ 162.41 $ 175.04 $ 157.24 Risk-free interest rate 1.9 % 0.8 % 1.5 % Dividend yield 2.9 % 2.8 % 2.7 % Expected volatility 21.8 % 22.6 % 19.7 % Expected life (months) 83 83 78 Black-Scholes fair value $ 25.34 $ 25.33 $ 21.58 |
Schedule of restricted stock and restricted stock units activity | The following table summarizes restricted stock and restricted stock unit activity during the year ended December 31: 2022 2021 2020 (Shares in thousands) Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested balance — As of January 1 1,987 $ 175.96 1,722 $ 189.78 1,573 $ 201.11 Granted Annual 1,102 160.24 822 176.82 733 157.29 Other — — — — 45 159.49 Vested (557) 197.48 (462) 228.94 (570) 176.20 Forfeited (157) 169.22 (95) 176.13 (59) 196.31 As of December 31 2,375 164.07 1,987 175.96 1,722 189.78 |
Schedule of performance shares activity | The following table summarizes performance share activity during the year ended December 31: 2022 2021 2020 (Shares in thousands) Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Undistributed balance — As of January 1 481 $ 175.12 423 $ 188.61 444 $ 205.58 Granted 269 144.77 166 176.79 203 153.16 Distributed (116) 207.49 (115) 228.80 (206) 190.84 Performance change (196) 153.15 40 176.35 25 166.49 Forfeited (47) 155.71 (33) 171.35 (43) 172.92 As of December 31 391 157.98 481 175.12 423 188.61 |
Business Segments and Geograp_2
Business Segments and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of business segment information | Business Segment Products Business Segment Representative revenue-generating activities, products or services Safety and Industrial • Industrial abrasives and finishing for metalworking applications • Autobody repair solutions • Closure systems for personal hygiene products, masking, and packaging materials • Electrical products and materials for construction and maintenance, power distribution and electrical original equipment manufacturers (OEMs) • Structural adhesives and tapes • Respiratory, hearing, eye and fall protection solutions • Natural and color-coated mineral granules for shingles Transportation and Electronics • Advanced ceramic solutions • Attachment tapes, films, sound and temperature management for transportation vehicles • Premium large format graphic films for advertising and fleet signage • Light management films and electronics assembly solutions • Packaging and interconnection solutions • Reflective signage for highway, and vehicle safety Health Care • Health care procedure coding and reimbursement software • Skin, wound care, and infection prevention products and solutions • Dentistry and orthodontia solutions • Filtration and purification systems Consumer • Consumer bandages, braces, supports and consumer respirators • Cleaning products for the home • Retail abrasives, paint accessories, car care DIY products, picture hanging and consumer air quality solutions • Stationery products Some seasonality impacts this business segment related to back-to-school, generally in the third quarter of each year Business Segment Information (Millions) Net Sales 2022 2021 2020 Safety and Industrial $ 11,604 $ 11,981 $ 10,972 Transportation and Electronics 8,902 9,262 8,406 Health Care 8,421 8,597 7,832 Consumer 5,298 5,513 4,976 Corporate and Unallocated 4 2 (2) Total Company $ 34,229 $ 35,355 $ 32,184 Operating Performance 2022 2021 2020 Safety and Industrial $ 1,199 $ 2,466 $ 2,588 Transportation and Electronics 1,012 1,880 1,701 Health Care 1,815 2,037 1,662 Consumer 994 1,162 1,119 Total business segment operating income 5,020 7,545 7,070 Corporate and Unallocated Corporate special items: Net costs for significant litigation (877) (214) (148) Divestiture costs (60) — — Gain on business divestitures 2,724 — 389 Divestiture-related restructuring actions (41) — (55) Russia exit charges (109) — — Total corporate special items 1,637 (214) 186 Other corporate expense - net (118) 38 (95) Total Corporate and Unallocated 1,519 (176) 91 Total Company operating income 6,539 7,369 7,161 Other expense/(income), net 147 165 366 Income before income taxes $ 6,392 $ 7,204 $ 6,795 Assets Depreciation & Amortization Capital Expenditures (Millions) 2022 2021 2022 2021 2020 2022 2021 2020 Safety and Industrial $ 11,730 $ 11,744 $ 566 $ 593 $ 562 $ 512 $ 339 $ 451 Transportation and Electronics 6,453 6,999 410 419 429 562 453 454 Health Care 13,343 14,055 623 636 626 272 249 251 Consumer 2,753 2,783 148 147 140 146 109 120 Corporate and Unallocated 12,176 11,491 84 120 154 257 453 225 Total Company $ 46,455 $ 47,072 $ 1,831 $ 1,915 $ 1,911 $ 1,749 $ 1,603 $ 1,501 |
Schedule of revenue from external customers and long -lived assets, by geographical areas | Property, Plant and Equipment - net (Millions) 2022 2021 Americas $ 6,066 $ 5,864 Asia Pacific 1,389 1,582 Europe, Middle East and Africa 1,723 1,983 Total Company $ 9,178 $ 9,429 |
Significant Accounting Polici_4
Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings and improvements | Minimum | |
Property, plant and equipment | |
Estimated useful life (in years) | 10 years |
Majority of estimated useful life (in years) | 20 years |
Buildings and improvements | Maximum | |
Property, plant and equipment | |
Estimated useful life (in years) | 40 years |
Majority of estimated useful life (in years) | 40 years |
Machinery and equipment | Minimum | |
Property, plant and equipment | |
Estimated useful life (in years) | 3 years |
Majority of estimated useful life (in years) | 5 years |
Machinery and equipment | Maximum | |
Property, plant and equipment | |
Estimated useful life (in years) | 15 years |
Majority of estimated useful life (in years) | 10 years |
Significant Accounting Polici_5
Significant Accounting Policies - Conditional Asset Retirement Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Asset Retirement Obligation [Abstract] | ||
Asset retirement obligation liability | $ 177 | $ 176 |
Significant Accounting Polici_6
Significant Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Acquired intangible assets disclosures | |
Intangible assets useful life (in years) | 6 years |
Minimum | Customer related intangible assets | |
Acquired intangible assets disclosures | |
Intangible assets useful life (in years) | 12 years |
Minimum | Patents | |
Acquired intangible assets disclosures | |
Intangible assets useful life (in years) | 8 years |
Minimum | Other technology-based intangible assets | |
Acquired intangible assets disclosures | |
Intangible assets useful life (in years) | 6 years |
Minimum | Definite-lived tradenames | |
Acquired intangible assets disclosures | |
Intangible assets useful life (in years) | 11 years |
Maximum | |
Acquired intangible assets disclosures | |
Intangible assets useful life (in years) | 20 years |
Maximum | Customer related intangible assets | |
Acquired intangible assets disclosures | |
Intangible assets useful life (in years) | 19 years |
Maximum | Patents | |
Acquired intangible assets disclosures | |
Intangible assets useful life (in years) | 13 years |
Maximum | Other technology-based intangible assets | |
Acquired intangible assets disclosures | |
Intangible assets useful life (in years) | 10 years |
Maximum | Definite-lived tradenames | |
Acquired intangible assets disclosures | |
Intangible assets useful life (in years) | 20 years |
Maximum | Other amortizable intangible assets | |
Acquired intangible assets disclosures | |
Intangible assets useful life (in years) | 10 years |
Significant Accounting Polici_7
Significant Accounting Policies - Accounts receivable and Allowances (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts receivable and allowance | |
Typical origination term for long-term customer receivables (in years) | 5 years |
Significant Accounting Polici_8
Significant Accounting Policies - Advertising and Merchandising Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Marketing and Advertising Expense [Abstract] | |||
Advertising and merchandising expense | $ 323 | $ 327 | $ 278 |
Significant Accounting Polici_9
Significant Accounting Policies - Research and Development Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Research and Development Expense | |||
Research, development and related expenses | $ 1,862 | $ 1,994 | $ 1,878 |
Research and development expense | $ 1,100 | $ 1,200 | $ 1,100 |
Significant Accounting Polic_10
Significant Accounting Policies - Internal-use Software (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Research and Development Assets Acquired Other than Through Business Combination [Line Items] | |
Capitalized internal-use software amortization period (in years) | 3 years |
Maximum | |
Research and Development Assets Acquired Other than Through Business Combination [Line Items] | |
Capitalized internal-use software amortization period (in years) | 7 years |
Significant Accounting Polic_11
Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Deferred tax assets valuation allowance | $ 115 | $ 142 |
Significant Accounting Polic_12
Significant Accounting Policies - Earnings Per Share Computations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per share | |||
Options outstanding not included in computation of diluted earnings per share (in shares) | 30.3 | 7.8 | 18.1 |
Numerator: | |||
Net income attributable to 3M | $ 5,777 | $ 5,921 | $ 5,449 |
Denominator: | |||
Denominator for weighted average 3M common shares outstanding - basic (in shares) | 566 | 579 | 577.6 |
Dilution associated with the Company's stock-based compensation plans (in shares) | 1.6 | 6.3 | 4.6 |
Denominator for weighted average 3M common shares outstanding - diluted (in shares) | 567.6 | 585.3 | 582.2 |
Earnings per share attributable to 3M common shareholders - basic (in dollars per share) | $ 10.21 | $ 10.23 | $ 9.43 |
Earnings per share attributable to 3M common shareholders - diluted (in dollars per share) | $ 10.18 | $ 10.12 | $ 9.36 |
Significant Accounting Polic_13
Significant Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 31, 2022 leaseOption | |
Minimum | |
Leases | |
Number of options to renew for operating leases | 1 |
Number of options to renew for finance leases | 1 |
Maximum | |
Leases | |
Operating lease, term (in years) | 5 years |
Finance lease, term (in years) | 5 years |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Software license contracts term (in years) | 1 year | ||
Deferred income recognized as revenue | $ 500 | $ 470 | |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Net sales | Net sales | Net sales |
Operating lease revenue | $ 577 | $ 582 | $ 586 |
Net sales | 34,229 | 35,355 | 32,184 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 15,000 | 15,000 | 13,900 |
China Hong Kong | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 3,800 | $ 4,000 | $ 3,500 |
Revenue - Disaggregated Revenue
Revenue - Disaggregated Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 34,229 | $ 35,355 | $ 32,184 |
Corporate and Unallocated | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4 | 2 | (2) |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 18,400 | 18,097 | 16,525 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 9,901 | 10,600 | 9,569 |
Europe, Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 5,928 | 6,660 | 6,109 |
Other Unallocated | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | (2) | (19) |
Safety and Industrial | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 11,604 | 11,981 | 10,972 |
Safety and Industrial | Abrasives | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,343 | 1,296 | 1,077 |
Safety and Industrial | Automotive Aftermarket | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,209 | 1,164 | 1,028 |
Safety and Industrial | Closure and Masking Systems | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,046 | 1,033 | 993 |
Safety and Industrial | Electrical Markets | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,304 | 1,229 | 1,093 |
Safety and Industrial | Industrial Adhesives and Tapes | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,331 | 2,353 | 2,000 |
Safety and Industrial | Personal Safety | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,916 | 4,470 | 4,408 |
Safety and Industrial | Roofing Granules | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 455 | 428 | 389 |
Safety and Industrial | Other Safety and Industrial | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 8 | (16) |
Transportation and Electronics | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 8,902 | 9,262 | 8,406 |
Transportation and Electronics | Advanced Materials | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,205 | 1,200 | 1,029 |
Transportation and Electronics | Automotive and Aerospace | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,754 | 1,756 | 1,522 |
Transportation and Electronics | Commercial Solutions | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,751 | 1,717 | 1,486 |
Transportation and Electronics | Electronics | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,359 | 3,673 | 3,497 |
Transportation and Electronics | Transportation Safety | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 833 | 907 | 880 |
Transportation and Electronics | Other Transportation and Electronics | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 9 | (8) |
Health Care | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 8,421 | 8,597 | 7,832 |
Health Care | Drug Delivery | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | 146 |
Health Care | Food Safety | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 244 | 368 | 337 |
Health Care | Health Information Systems | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,259 | 1,220 | 1,140 |
Health Care | Medical Solutions | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,581 | 4,632 | 4,288 |
Health Care | Oral Care | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,353 | 1,420 | 1,071 |
Health Care | Separation and Purification Sciences | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 960 | 956 | 848 |
Health Care | Other Health Care | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 24 | 1 | 2 |
Consumer | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 5,298 | 5,513 | 4,976 |
Consumer | Consumer Health and Safety | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 569 | 588 | 540 |
Consumer | Home Care | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,046 | 1,074 | 1,043 |
Consumer | Home Improvement | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,392 | 2,548 | 2,260 |
Consumer | Stationery and Office | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,291 | 1,306 | 1,132 |
Consumer | Other Consumer | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 0 | $ (3) | $ 1 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Acquisitions (Details) - business | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Combination and Asset Acquisition [Abstract] | |||
Number of acquisitions | 0 | 0 | 0 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Divestitures (Details) shares in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 USD ($) shares | Jul. 31, 2022 | May 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) businessDivested | Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain on business divestitures | |||||
Number of businesses divested | businessDivested | 0 | |||||
Proceeds from sale of businesses, net of cash sold | $ 13 | $ 0 | $ 576 | |||
Noncontrolling interest | $ 48 | $ 71 | ||||
NEOGEN Corporation | ||||||
Business Acquisition [Line Items] | ||||||
Ownership interest (as a percent) | 50.10% | |||||
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Health Care | ||||||
Business Acquisition [Line Items] | ||||||
Ownership interest after spinoff (as a percent) | 19.90% | |||||
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations | Food Safety Division | ||||||
Business Acquisition [Line Items] | ||||||
Pre-tax gain on divestitures | $ 2,700 | |||||
Aggregate consideration | 2,800 | |||||
Value of shares exchanged | 1,000 | |||||
Value of shares exchanged, net of adjustments | 828 | |||||
Value of common shares | $ 2,000 | |||||
Reduction of outstanding shares | shares | 16 | |||||
Special cash payment received | $ 478 | |||||
Value of noncash debt exchange | 350 | |||||
Disposal group, not discontinued operation, gain (loss) on disposal | $ 2,700 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Drug Delivery Business | ||||||
Business Acquisition [Line Items] | ||||||
Equity method investment, ownership percentage | 17% | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Advanced Ballistic Protection Business | ||||||
Business Acquisition [Line Items] | ||||||
Net cash provided by (used in) discontinued operations | 86 | |||||
Disposal group, including discontinued operation, contingent consideration | 25 | |||||
Disposal group, including discontinued operation, average annual revenue | $ 85 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Drug Delivery Business | ||||||
Business Acquisition [Line Items] | ||||||
Pre-tax gain on divestitures | $ 387 | |||||
Aggregate consideration | 617 | |||||
Disposal group, including discontinued operation, average annual revenue | 380 | |||||
Proceeds from sale of businesses, net of cash sold | 487 | |||||
Security received from divestiture of businesses | 70 | |||||
Noncontrolling interest | 60 | |||||
Disposal group, not discontinued operation, gain (loss) on disposal | $ 387 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Balance by Business Segment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill acquired during period | $ 0 | $ 0 | ||
Goodwill | ||||
Balance at the beginning of the period | 13,486,000,000 | 13,802,000,000 | ||
Divestiture activity | (16,000,000) | |||
Goodwill impairment expense | $ 0 | (271,000,000) | 0 | $ 0 |
Translation and other | (409,000,000) | (316,000,000) | ||
Balance at the end of the period | 12,790,000,000 | 12,790,000,000 | 13,486,000,000 | 13,802,000,000 |
Fair value on a nonrecurring basis | ||||
Goodwill | ||||
Goodwill impairment expense | (300,000,000) | |||
Safety and Industrial | ||||
Goodwill | ||||
Balance at the beginning of the period | 4,622,000,000 | 4,687,000,000 | ||
Divestiture activity | 0 | |||
Goodwill impairment expense | 0 | |||
Translation and other | (113,000,000) | (65,000,000) | ||
Balance at the end of the period | 4,509,000,000 | 4,509,000,000 | 4,622,000,000 | 4,687,000,000 |
Transportation and Electronics | ||||
Goodwill | ||||
Balance at the beginning of the period | 1,825,000,000 | 1,858,000,000 | ||
Divestiture activity | 0 | |||
Goodwill impairment expense | (271,000,000) | |||
Translation and other | (53,000,000) | (33,000,000) | ||
Balance at the end of the period | 1,501,000,000 | 1,501,000,000 | 1,825,000,000 | 1,858,000,000 |
Health Care | ||||
Goodwill | ||||
Balance at the beginning of the period | 6,786,000,000 | 6,992,000,000 | ||
Divestiture activity | (16,000,000) | |||
Goodwill impairment expense | 0 | |||
Translation and other | (255,000,000) | (206,000,000) | ||
Balance at the end of the period | 6,515,000,000 | 6,515,000,000 | 6,786,000,000 | 6,992,000,000 |
Consumer | ||||
Goodwill | ||||
Balance at the beginning of the period | 253,000,000 | 265,000,000 | ||
Divestiture activity | 0 | |||
Goodwill impairment expense | 0 | |||
Translation and other | 12,000,000 | (12,000,000) | ||
Balance at the end of the period | $ 265,000,000 | $ 265,000,000 | $ 253,000,000 | $ 265,000,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Acquired Intangible Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment expense | $ 0 | $ 271,000,000 | $ 0 | $ 0 |
Acquired intangible assets disclosures | ||||
Total gross carrying amount | 7,819,000,000 | 7,819,000,000 | 8,116,000,000 | |
Total accumulated amortization | (3,737,000,000) | (3,737,000,000) | (3,481,000,000) | |
Total finite-lived intangible assets — net | 4,082,000,000 | 4,082,000,000 | 4,635,000,000 | |
Non-amortizable intangible assets (primarily tradenames) | 617,000,000 | 617,000,000 | 653,000,000 | |
Total intangible assets — net | 4,699,000,000 | 4,699,000,000 | 5,288,000,000 | |
Customer related intangible assets | ||||
Acquired intangible assets disclosures | ||||
Total gross carrying amount | 4,062,000,000 | 4,062,000,000 | 4,216,000,000 | |
Total accumulated amortization | (1,747,000,000) | (1,747,000,000) | (1,616,000,000) | |
Patents | ||||
Acquired intangible assets disclosures | ||||
Total gross carrying amount | 426,000,000 | 426,000,000 | 513,000,000 | |
Total accumulated amortization | (421,000,000) | (421,000,000) | (500,000,000) | |
Other technology-based intangible assets | ||||
Acquired intangible assets disclosures | ||||
Total gross carrying amount | 2,081,000,000 | 2,081,000,000 | 2,111,000,000 | |
Total accumulated amortization | (1,000,000,000) | (1,000,000,000) | (839,000,000) | |
Definite-lived tradenames | ||||
Acquired intangible assets disclosures | ||||
Total gross carrying amount | 1,166,000,000 | 1,166,000,000 | 1,171,000,000 | |
Total accumulated amortization | (509,000,000) | (509,000,000) | (447,000,000) | |
Other amortizable intangible assets | ||||
Acquired intangible assets disclosures | ||||
Total gross carrying amount | 84,000,000 | 84,000,000 | 105,000,000 | |
Total accumulated amortization | $ (60,000,000) | $ (60,000,000) | $ (79,000,000) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedules for Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 498 | $ 529 | $ 537 |
Expected amortization expense for acquired intangible assets recorded as of balance sheet date | |||
2023 | 479 | ||
2024 | 451 | ||
2025 | 421 | ||
2026 | 415 | ||
2027 | 390 | ||
After 2027 | $ 1,926 |
Restructuring Actions - Narrati
Restructuring Actions - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | 27 Months Ended | |||||
Sep. 30, 2022 USD ($) position | Mar. 31, 2022 USD ($) | Dec. 31, 2020 USD ($) | Jun. 30, 2020 USD ($) position | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Mar. 31, 2022 position | |
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | $ 18 | |||||||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Costs and Expenses | |||||||
COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | $ 58 | |||||||
Restructuring charges | $ 58 | |||||||
Restructuring and related cost, number of positions affected | position | 400 | |||||||
Corporate and Unallocated | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | $ 23 | |||||||
Employee-Related | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 35 | |||||||
Restructuring charges | 35 | |||||||
Employee-Related | Corporate and Unallocated | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 0 | |||||||
Asset-Related and Other | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 23 | |||||||
Asset-Related and Other | Corporate and Unallocated | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 23 | |||||||
Operational/Marketing Capability Restructuring | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | $ 18 | $ 124 | $ 137 | |||||
Restructuring and related cost, expected number of positions affected | position | 3,100 | |||||||
Expected charges | 280 | |||||||
Restructuring charges | 137 | |||||||
Operational/Marketing Capability Restructuring | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 18 | $ 137 | 124 | |||||
Operational/Marketing Capability Restructuring | Corporate and Unallocated | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 29 | |||||||
Operational/Marketing Capability Restructuring | Employee-Related | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 137 | 18 | 124 | 101 | ||||
Operational/Marketing Capability Restructuring | Employee-Related | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 18 | 101 | 124 | |||||
Operational/Marketing Capability Restructuring | Employee-Related | Corporate and Unallocated | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 8 | 42 | 16 | |||||
Operational/Marketing Capability Restructuring | Asset-Related and Other | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 36 | |||||||
Operational/Marketing Capability Restructuring | Asset-Related and Other | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | $ 0 | $ 36 | 0 | |||||
Operational/Marketing Capability Restructuring | Asset-Related and Other | Corporate and Unallocated | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 13 | |||||||
Divestiture-Related Restructuring | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | $ 41 | 55 | ||||||
Restructuring and related cost, expected number of positions affected | position | 850 | |||||||
Expected charges | $ 41 | |||||||
Divestiture-Related Restructuring | Corporate and Unallocated | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | $ 55 | |||||||
Restructuring and related cost, number of positions affected | position | 1,300 | |||||||
Divestiture-Related Restructuring | Employee-Related | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 41 | $ 32 | ||||||
Divestiture-Related Restructuring | Asset-Related and Other | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 23 | |||||||
Safety and Industrial | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 7 | |||||||
Safety and Industrial | Employee-Related | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 7 | |||||||
Safety and Industrial | Asset-Related and Other | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 0 | |||||||
Safety and Industrial | Operational/Marketing Capability Restructuring | Operating Segments | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 43 | |||||||
Safety and Industrial | Operational/Marketing Capability Restructuring | Employee-Related | Operating Segments | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 2 | 30 | 36 | |||||
Safety and Industrial | Operational/Marketing Capability Restructuring | Asset-Related and Other | Operating Segments | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 7 | |||||||
Transportation and Electronics | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 11 | |||||||
Transportation and Electronics | Employee-Related | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 11 | |||||||
Transportation and Electronics | Asset-Related and Other | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 0 | |||||||
Transportation and Electronics | Operational/Marketing Capability Restructuring | Operating Segments | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 28 | |||||||
Transportation and Electronics | Operational/Marketing Capability Restructuring | Employee-Related | Operating Segments | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 4 | 24 | 16 | |||||
Transportation and Electronics | Operational/Marketing Capability Restructuring | Asset-Related and Other | Operating Segments | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 12 | |||||||
Health Care | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 12 | |||||||
Health Care | Employee-Related | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 12 | |||||||
Health Care | Asset-Related and Other | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 0 | |||||||
Health Care | Operational/Marketing Capability Restructuring | Operating Segments | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 26 | |||||||
Health Care | Operational/Marketing Capability Restructuring | Employee-Related | Operating Segments | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 2 | 21 | 23 | |||||
Health Care | Operational/Marketing Capability Restructuring | Asset-Related and Other | Operating Segments | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 3 | |||||||
Consumer | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 5 | |||||||
Consumer | Employee-Related | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 5 | |||||||
Consumer | Asset-Related and Other | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 0 | |||||||
Consumer | Operational/Marketing Capability Restructuring | Operating Segments | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 11 | |||||||
Consumer | Operational/Marketing Capability Restructuring | Employee-Related | Operating Segments | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 2 | 7 | 10 | |||||
Consumer | Operational/Marketing Capability Restructuring | Asset-Related and Other | Operating Segments | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring charges | 1 | |||||||
Cost of sales | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 13 | |||||||
Cost of sales | Operational/Marketing Capability Restructuring | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 0 | 19 | 51 | |||||
Cost of sales | Divestiture-Related Restructuring | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 3 | 42 | ||||||
Selling, general and administrative expenses | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 37 | |||||||
Selling, general and administrative expenses | Operational/Marketing Capability Restructuring | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 12 | 88 | 79 | |||||
Selling, general and administrative expenses | Divestiture-Related Restructuring | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 36 | 12 | ||||||
Research, development and related expenses | COVID-19 Pandemic | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 8 | |||||||
Research, development and related expenses | Operational/Marketing Capability Restructuring | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | $ 6 | $ 17 | $ 7 | |||||
Research, development and related expenses | Divestiture-Related Restructuring | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | $ 2 | $ 1 |
Restructuring Actions - Roll Fo
Restructuring Actions - Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve Roll Forward | |||||||||
Restructuring charges | $ 18 | ||||||||
COVID-19 Pandemic | |||||||||
Restructuring Reserve Roll Forward | |||||||||
Accrued restructuring action balances, beginning balance | $ 24 | $ 24 | $ 24 | ||||||
Restructuring charges | $ 58 | ||||||||
Non-cash changes | (23) | ||||||||
Cash payments | (4) | (2) | |||||||
Adjustments | (9) | (9) | |||||||
Accrued restructuring actions balances, ending balance | 11 | $ 24 | $ 24 | ||||||
Operational/Marketing Capability Restructuring | |||||||||
Restructuring Reserve Roll Forward | |||||||||
Restructuring charges | $ 18 | 124 | 137 | ||||||
Operational/Marketing Capability Restructuring | COVID-19 Pandemic | |||||||||
Restructuring Reserve Roll Forward | |||||||||
Accrued restructuring action balances, beginning balance | $ 12 | 87 | 101 | 101 | 87 | 101 | |||
Restructuring charges | 18 | 137 | 124 | ||||||
Non-cash changes | (36) | ||||||||
Cash payments | (84) | (127) | |||||||
Adjustments | (9) | (11) | |||||||
Accrued restructuring actions balances, ending balance | 101 | 87 | 101 | ||||||
Divestiture-Related Restructuring | |||||||||
Restructuring Reserve Roll Forward | |||||||||
Accrued restructuring action balances, beginning balance | 24 | 24 | 24 | ||||||
Restructuring charges | 41 | 55 | |||||||
Non-cash changes | (14) | ||||||||
Cash payments | (14) | (5) | |||||||
Adjustments | (3) | (1) | |||||||
Accrued restructuring actions balances, ending balance | 24 | 18 | 24 | ||||||
Employee-Related | COVID-19 Pandemic | |||||||||
Restructuring Reserve Roll Forward | |||||||||
Accrued restructuring action balances, beginning balance | 24 | 24 | 24 | ||||||
Restructuring charges | 35 | ||||||||
Non-cash changes | 0 | ||||||||
Cash payments | (4) | (2) | |||||||
Adjustments | (9) | (9) | |||||||
Accrued restructuring actions balances, ending balance | 11 | 24 | 24 | ||||||
Employee-Related | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Reserve Roll Forward | |||||||||
Restructuring charges | 137 | 18 | 124 | 101 | |||||
Employee-Related | Operational/Marketing Capability Restructuring | COVID-19 Pandemic | |||||||||
Restructuring Reserve Roll Forward | |||||||||
Accrued restructuring action balances, beginning balance | 12 | 87 | 101 | 101 | 87 | 101 | |||
Restructuring charges | 18 | 101 | 124 | ||||||
Non-cash changes | 0 | ||||||||
Cash payments | (84) | (127) | |||||||
Adjustments | (9) | (11) | |||||||
Accrued restructuring actions balances, ending balance | 101 | 87 | 101 | ||||||
Employee-Related | Divestiture-Related Restructuring | |||||||||
Restructuring Reserve Roll Forward | |||||||||
Accrued restructuring action balances, beginning balance | 15 | 15 | 15 | ||||||
Restructuring charges | 41 | 32 | |||||||
Non-cash changes | 0 | ||||||||
Cash payments | (31) | (14) | (5) | ||||||
Adjustments | (3) | (1) | |||||||
Accrued restructuring actions balances, ending balance | 15 | 9 | 10 | 15 | |||||
Asset-Related and Other | Operational/Marketing Capability Restructuring | COVID-19 Pandemic | |||||||||
Restructuring Reserve Roll Forward | |||||||||
Accrued restructuring action balances, beginning balance | $ 0 | 0 | 0 | 0 | $ 0 | 0 | |||
Restructuring charges | 0 | 36 | 0 | ||||||
Non-cash changes | (36) | ||||||||
Cash payments | 0 | 0 | |||||||
Adjustments | $ 0 | 0 | |||||||
Accrued restructuring actions balances, ending balance | 0 | 0 | 0 | ||||||
Asset-Related and Other | Divestiture-Related Restructuring | |||||||||
Restructuring Reserve Roll Forward | |||||||||
Accrued restructuring action balances, beginning balance | 9 | 9 | 9 | ||||||
Restructuring charges | 23 | ||||||||
Non-cash changes | (14) | ||||||||
Cash payments | 0 | 0 | |||||||
Adjustments | 0 | 0 | |||||||
Accrued restructuring actions balances, ending balance | 9 | 9 | 9 | ||||||
Asset Related Restructuring | COVID-19 Pandemic | |||||||||
Restructuring Reserve Roll Forward | |||||||||
Accrued restructuring action balances, beginning balance | 0 | $ 0 | $ 0 | ||||||
Restructuring charges | 23 | ||||||||
Non-cash changes | (23) | ||||||||
Cash payments | 0 | 0 | |||||||
Adjustments | 0 | $ 0 | |||||||
Accrued restructuring actions balances, ending balance | $ 0 | $ 0 | $ 0 |
Supplemental Income Statement_3
Supplemental Income Statement Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | ||||
Interest expense | $ 462 | $ 488 | $ 529 | |
Interest income | (67) | (26) | (29) | |
Pension and postretirement net periodic benefit cost (benefit) | (248) | (297) | (134) | |
Total | $ 147 | 165 | 366 | |
Debt instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 10 | |||
Fixed rate medium term note due 2022 | ||||
Debt instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 11 | $ 11 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other current assets | ||
Derivative assets-current | $ 162 | $ 78 |
Insurance related (receivables, prepaid expenses and other) | 103 | 110 |
Other | 191 | 151 |
Total other current assets | 456 | 339 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 25,998 | 27,213 |
Less: Accumulated depreciation | (16,820) | (17,784) |
Property, plant and equipment - net | 9,178 | 9,429 |
Other assets | ||
Deferred income taxes | 959 | 581 |
Prepaid pension and post retirement | 1,225 | 943 |
Insurance related receivables and other | 73 | 51 |
Cash surrender value of life insurance policies | 265 | 261 |
Equity method investments | 81 | 129 |
Equity and other investments | 886 | 133 |
Other | 782 | 510 |
Total other assets | 4,271 | 2,608 |
Other current liabilities | ||
Accrued rebates | 751 | 731 |
Deferred revenue | 538 | 529 |
Derivative liabilities | 31 | 23 |
Employee benefits and withholdings | 247 | 219 |
Contingent liability claims and other | 534 | 487 |
Property, sales-related and other taxes | 224 | 326 |
Pension and postretirement benefits | 77 | 78 |
Other | 788 | 798 |
Total other current liabilities | 3,190 | 3,191 |
Other liabilities | ||
Long term income taxes payable | 1,051 | 1,324 |
Employee benefits | 386 | 400 |
Contingent liability claims and other | 2,179 | 872 |
Finance lease obligations | 75 | 93 |
Deferred income taxes | 559 | 458 |
Other | 1,365 | 256 |
Total other liabilities | 5,615 | 3,403 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 255 | 312 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 7,560 | 8,086 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 16,455 | 17,305 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 1,728 | $ 1,510 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Narrative (Details) - Product Liability - Dual-Ended Combat Arms Earplugs - USD ($) $ in Billions | Dec. 31, 2022 | Jul. 31, 2022 |
Property, plant and equipment - at cost | ||
Committed amount to product liability accrual | $ 1 | |
Aearo Entities | ||
Property, plant and equipment - at cost | ||
Committed amount to product liability accrual | $ 0.6 | |
Other Investments | Aearo Entities | ||
Property, plant and equipment - at cost | ||
Committed amount to product liability accrual | 0.7 | |
Other Assets | Aearo Entities | ||
Property, plant and equipment - at cost | ||
Committed amount to product liability accrual | 0.3 | |
Contingent Liability Claims | Aearo Entities | ||
Property, plant and equipment - at cost | ||
Committed amount to product liability accrual | 1.2 | |
Other Liabilities | Aearo Entities | ||
Property, plant and equipment - at cost | ||
Committed amount to product liability accrual | $ 0.9 |
Supplemental Equity and Compr_3
Supplemental Equity and Comprehensive Income Information - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Noncontrolling Interest [Line Items] | |||||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Common stock, authorized (in shares) | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | |||||||||
Common stock, issued (in shares) | 944,033,056 | 944,033,056 | 944,033,056 | 944,033,056 | 944,033,056 | 944,033,056 | |||||||||
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | |||||||||
Dividends declared in period (in dollars per share) | $ 1.49 | $ 1.49 | $ 1.49 | $ 1.49 | $ 1.48 | $ 1.48 | $ 1.48 | $ 1.48 | $ 1.47 | $ 1.47 | $ 1.47 | $ 1.47 | $ 5.96 | $ 5.92 | $ 5.88 |
3M India Limited | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Payment of dividend to noncontrolling interest | $ (29) | ||||||||||||||
Ownership interest (as a percent) | 75% | 75% |
Supplemental Equity and Compr_4
Supplemental Equity and Comprehensive Income Information - AOCI Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | $ 15,117 | $ 12,931 | $ 10,126 |
Other comprehensive income (loss), before tax: | |||
Total other comprehensive income (loss), net of tax | 69 | 970 | 411 |
Balance at the end of the period | 14,770 | 15,117 | 12,931 |
Total Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | (6,750) | (7,721) | (8,134) |
Other comprehensive income (loss), before tax: | |||
Amounts before reclassifications | 175 | 903 | (308) |
Amounts reclassified out | 360 | 705 | 548 |
Total other comprehensive income (loss), before tax | 535 | 1,608 | 240 |
Tax effect | (458) | (637) | 173 |
Total other comprehensive income (loss), net of tax | 77 | 971 | 413 |
Balance at the end of the period | (6,673) | (6,750) | (7,721) |
Cumulative Translation Adjustment | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | (1,943) | (1,450) | (1,899) |
Other comprehensive income (loss), before tax: | |||
Amounts before reclassifications | (850) | (428) | 387 |
Amounts reclassified out | 0 | 0 | 0 |
Total other comprehensive income (loss), before tax | (850) | (428) | 387 |
Tax effect | (35) | (65) | 62 |
Total other comprehensive income (loss), net of tax | (885) | (493) | 449 |
Balance at the end of the period | (2,828) | (1,943) | (1,450) |
Defined Benefit Pension and Postretirement Plans Adjustment | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | (4,753) | (6,098) | (6,204) |
Other comprehensive income (loss), before tax: | |||
Amounts before reclassifications | 866 | 1,223 | (582) |
Amounts reclassified out | 458 | 658 | 619 |
Total other comprehensive income (loss), before tax | 1,324 | 1,881 | 37 |
Tax effect | (409) | (536) | 69 |
Total other comprehensive income (loss), net of tax | 915 | 1,345 | 106 |
Balance at the end of the period | (3,838) | (4,753) | (6,098) |
Cash Flow Hedging Instruments, Unrealized Gain (Loss) | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | (54) | (173) | (31) |
Other comprehensive income (loss), before tax: | |||
Amounts before reclassifications | 159 | 108 | (113) |
Amounts reclassified out | (98) | 47 | (71) |
Total other comprehensive income (loss), before tax | 61 | 155 | (184) |
Tax effect | (14) | (36) | 42 |
Total other comprehensive income (loss), net of tax | 47 | 119 | (142) |
Balance at the end of the period | $ (7) | $ (54) | $ (173) |
Supplemental Equity and Compr_5
Supplemental Equity and Comprehensive Income Information - Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Other expense (income), net | $ (147) | $ (165) | $ (366) |
Total before tax | 6,392 | 7,204 | 6,795 |
Provision for income taxes | 612 | 1,285 | 1,337 |
Net income | 5,791 | 5,929 | 5,453 |
Cost of sales | 19,232 | 18,795 | 16,605 |
Net income attributable to 3M | 5,777 | 5,921 | 5,449 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Net income attributable to 3M | (275) | (534) | (417) |
Defined benefit pension and postretirement plans adjustments | Reclassification out of Accumulated Other Comprehensive Income | |||
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Total before tax | (458) | (658) | (619) |
Provision for income taxes | 108 | 160 | 148 |
Net income | (350) | (498) | (471) |
Transition asset | Reclassification out of Accumulated Other Comprehensive Income | |||
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Other expense (income), net | (2) | (2) | (2) |
Prior service benefit | Reclassification out of Accumulated Other Comprehensive Income | |||
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Other expense (income), net | 55 | 60 | 62 |
Net actuarial loss | Reclassification out of Accumulated Other Comprehensive Income | |||
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Other expense (income), net | (493) | (689) | (659) |
Curtailments/Settlements | Reclassification out of Accumulated Other Comprehensive Income | |||
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Other expense (income), net | (18) | (27) | (20) |
Cash flow hedging instruments gains (losses) | Reclassification out of Accumulated Other Comprehensive Income | |||
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Other expense (income), net | (9) | (9) | (9) |
Total before tax | 98 | (47) | 71 |
Provision for income taxes | (23) | 11 | (17) |
Net income | 75 | (36) | 54 |
Cost of sales | $ 107 | $ (38) | $ 80 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash income tax payments, net of refunds | $ 1,320 | $ 1,695 | $ 1,351 |
Cash interest payments | $ 440 | $ 472 | $ 524 |
Income Taxes - Income Before Ta
Income Taxes - Income Before Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Before Income Taxes | |||
United States | $ 3,861 | $ 3,716 | $ 3,795 |
International | 2,531 | 3,488 | 3,000 |
Income before income taxes | $ 6,392 | $ 7,204 | $ 6,795 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Currently payable | |||
Federal | $ 606 | $ 756 | $ 720 |
State | 76 | 104 | 123 |
International | 621 | 597 | 632 |
Deferred | |||
Federal | (612) | (219) | (44) |
State | (76) | (25) | (17) |
International | (2) | 72 | (77) |
Total | $ 612 | $ 1,285 | $ 1,337 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accruals not currently deductible | ||
Employee benefit costs | $ 232 | $ 237 |
Product and other claims | 610 | 257 |
Miscellaneous accruals | 117 | 157 |
Pension costs | 7 | 351 |
Stock-based compensation | 259 | 249 |
Advanced payments | 173 | 286 |
Net operating/capital loss/state tax credit carryforwards | 120 | 120 |
Foreign tax credits | 112 | 115 |
Research and experimentation capitalization | 418 | 0 |
Lease liabilities | 210 | 219 |
Product and other insurance receivables | 0 | 48 |
Inventory | 95 | 68 |
Other | 0 | 31 |
Gross deferred tax assets | 2,353 | 2,138 |
Valuation allowance | (115) | (142) |
Total deferred tax assets | 2,238 | 1,996 |
Deferred tax liabilities: | ||
Product and other insurance receivables | (3) | 0 |
Accelerated depreciation | (586) | (665) |
Intangible assets | (901) | (985) |
Currency translation | (69) | 0 |
Right-of-use asset | (210) | (222) |
Other | (69) | 0 |
Total deferred tax liabilities | (1,838) | (1,872) |
Net deferred tax assets | $ 400 | $ 124 |
Income Taxes - Tax Effected Ope
Income Taxes - Tax Effected Operating Loss, Capital Loss, and Tax Credit Carryovers (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Tax effected operating loss, capital loss, and tax credit carryovers | ||
Deferred tax assets valuation allowance | $ 115 | $ 142 |
Federal jurisdiction | ||
Tax effected operating loss, capital loss, and tax credit carryovers | ||
Tax effected operating loss, capital loss, and tax credit carryovers | $ 112 | |
Federal jurisdiction | Minimum | ||
Tax effected operating loss, capital loss, and tax credit carryovers | ||
Tax effected operating loss, capital loss, and tax credit carryovers, expiration date (in years) | 1 year | |
Federal jurisdiction | Maximum | ||
Tax effected operating loss, capital loss, and tax credit carryovers | ||
Tax effected operating loss, capital loss, and tax credit carryovers, expiration date (in years) | 10 years | |
State jurisdiction | ||
Tax effected operating loss, capital loss, and tax credit carryovers | ||
Tax effected operating loss, capital loss, and tax credit carryovers | $ 79 | |
State jurisdiction | Minimum | ||
Tax effected operating loss, capital loss, and tax credit carryovers | ||
Tax effected operating loss, capital loss, and tax credit carryovers, expiration date (in years) | 1 year | |
State jurisdiction | Maximum | ||
Tax effected operating loss, capital loss, and tax credit carryovers | ||
Tax effected operating loss, capital loss, and tax credit carryovers, expiration date (in years) | 11 years | |
International jurisdiction | ||
Tax effected operating loss, capital loss, and tax credit carryovers | ||
Tax effected operating loss, capital loss, and tax credit carryovers | $ 40 | |
International jurisdiction | Minimum | ||
Tax effected operating loss, capital loss, and tax credit carryovers | ||
Tax effected operating loss, capital loss, and tax credit carryovers, expiration date (in years) | 1 year |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Effective Income Tax Rate | |||
Statutory U.S. tax rate | 21% | 21% | 21% |
Food Safety divestiture | (8.40%) | 0% | 0% |
State income taxes - net of federal benefit | 0% | 0.90% | 1.20% |
International income taxes - net | (0.40%) | (1.20%) | (1.20%) |
Global Intangible Low Taxed Income (GILTI) | 0.70% | 0.70% | 0.80% |
Foreign Derived Intangible Income (FDII) | (2.30%) | (3.10%) | (1.80%) |
U.S. research and development credit | (1.00%) | (0.70%) | (1.00%) |
Reserves for tax contingencies | 0% | 0.60% | 0.50% |
Employee share-based payments | (0.20%) | (0.60%) | (0.50%) |
All other - net | 0.20% | 0.20% | 0.70% |
Effective worldwide tax rate (as a percent) | 9.60% | 17.80% | 19.70% |
Income Taxes - Cumulative Effec
Income Taxes - Cumulative Effect, Period of Adoption, Adjustment (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate (as a percent) | 9.60% | 17.80% | 19.70% |
Effective income tax rate, change from prior reporting period to current reporting period | (8.20%) | (1.90%) | |
Tax Cuts and Jobs Act of 2017 transition tax long term income taxes payable | $ 380 | $ 508 | |
Tax Cuts and Jobs Act of 2017 transition tax in current accrued income taxes payable | 126 | 68 | |
Unrecognized tax benefits that would affect the effective tax rate | 965 | 1,112 | $ 1,145 |
Interest and penalties related to unrecognized tax benefits, expense (benefit) recognized on a gross basis | 1 | 14 | 21 |
Interest and penalties related to unrecognized tax benefits, accrued on a gross basis | 116 | 140 | |
Income tax benefits attributable to reduced tax rates or exemptions in foreign locations | $ 170 | $ 204 | $ 163 |
EPS impact of reduced tax rates or exemptions in foreign locations (in dollars per share) | $ 30 | $ 36 | $ 28 |
Previously undistributed earnings from non-U.S. subsidiaries permanently reinvested | $ 16,000 | ||
Reinvested earnings that may be repatriated from non-U.S. subsidiaries | 8,000 | ||
Undistributed earnings from non-U.S. subsidiaries permanently reinvested | $ 8,000 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of unrecognized tax benefits (UTB) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Federal, State and Foreign Tax | |||
Gross UTB Balance, beginning balance | $ 1,071 | $ 1,113 | $ 1,167 |
Additions based on tax positions related to the current year | 115 | 91 | 74 |
Additions for tax positions of prior years | 36 | 22 | 106 |
Additions related to recent acquisitions | 0 | 0 | 0 |
Reductions for tax positions of prior years | (138) | (60) | (173) |
Settlements | (118) | (57) | (8) |
Reductions due to lapse of applicable statute of limitations | (39) | (38) | (53) |
Gross UTB Balance, ending balance | 927 | 1,071 | 1,113 |
Net UTB that would impact the effective tax rate | $ 965 | $ 1,112 | $ 1,145 |
Marketable Securities - Current
Marketable Securities - Current and Non-current (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale | ||
Current marketable securities | $ 238 | $ 201 |
Non-current marketable securities | 23 | 27 |
Total marketable securities | 261 | 228 |
Commercial paper | ||
Debt Securities, Available-for-sale | ||
Current marketable securities | 213 | 109 |
Certificates of deposit/time deposits | ||
Debt Securities, Available-for-sale | ||
Current marketable securities | 21 | 14 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale | ||
Current marketable securities | 0 | 75 |
U.S. municipal securities | ||
Debt Securities, Available-for-sale | ||
Current marketable securities | 4 | 3 |
Non-current marketable securities | $ 23 | $ 27 |
Marketable Securities - Contrac
Marketable Securities - Contractual Maturity (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Marketable securities by contractual maturity | |
Due in one year or less | $ 238 |
Due after one year through five years | 15 |
Due after five years through ten years | 8 |
Total marketable securities | $ 261 |
Long-Term Debt and Short-Term_3
Long-Term Debt and Short-Term Borrowings - Long-Term Debt (Details) € in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Mar. 31, 2020 USD ($) | Dec. 31, 2004 USD ($) |
Long-Term Debt | ||||||
Total long-term debt | $ 15,939,000,000 | $ 17,347,000,000 | ||||
Less: current portion of long-term debt | 1,938,000,000 | 1,291,000,000 | ||||
Long-term debt (excluding current portion) | $ 14,001,000,000 | 16,056,000,000 | ||||
Fixed rate Euro medium term note due 2022 | ||||||
Long-Term Debt | ||||||
Effective Interest Rate | 0% | 0% | ||||
Total long-term debt | $ 0 | 567,000,000 | ||||
Fixed rate medium term note due 2022 | ||||||
Long-Term Debt | ||||||
Effective Interest Rate | 0% | 0% | ||||
Total long-term debt | $ 0 | 599,000,000 | ||||
Fixed rate registered note due 2023 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 500,000,000 | |||||
Effective Interest Rate | 1.86% | 1.86% | ||||
Total long-term debt | $ 500,000,000 | 499,000,000 | ||||
Fixed rate medium term notes due 2023 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 650,000,000 | |||||
Effective Interest Rate | 2.26% | 2.26% | ||||
Total long-term debt | $ 650,000,000 | 649,000,000 | ||||
Fixed rate Euro medium term note due 2023 | ||||||
Long-Term Debt | ||||||
Principal amount | € | € 600 | |||||
Effective Interest Rate | 1.14% | 1.14% | ||||
Total long-term debt | $ 639,000,000 | 679,000,000 | ||||
Fixed rate medium term notes due 2024 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 300,000,000 | |||||
Effective Interest Rate | 3.30% | 3.30% | ||||
Total long-term debt | $ 300,000,000 | 299,000,000 | ||||
Fixed rate medium term notes due 2024 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 500,000,000 | |||||
Effective Interest Rate | 2.98% | 2.98% | ||||
Total long-term debt | $ 501,000,000 | 501,000,000 | ||||
Floating rate medium term notes due 2024 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 300,000,000 | |||||
Effective Interest Rate | 4.81% | 4.81% | ||||
Total long-term debt | $ 300,000,000 | 300,000,000 | ||||
Fixed rate registered note due 2025 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 750,000,000 | $ 500,000,000 | ||||
Effective Interest Rate | 2.12% | 2.12% | 2.65% | |||
Total long-term debt | $ 747,000,000 | 746,000,000 | ||||
Fixed rate registered note due 2025 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 500,000,000 | |||||
Effective Interest Rate | 2.67% | 2.67% | ||||
Total long-term debt | $ 499,000,000 | 498,000,000 | ||||
Fixed rate medium term note due 2025 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 550,000,000 | |||||
Effective Interest Rate | 3.04% | 3.04% | ||||
Total long-term debt | $ 549,000,000 | 548,000,000 | ||||
Fixed rate medium term note due 2026 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 650,000,000 | |||||
Effective Interest Rate | 2.37% | 2.37% | ||||
Total long-term debt | $ 646,000,000 | 645,000,000 | ||||
Fixed rate Euro medium term note due 2026 | ||||||
Long-Term Debt | ||||||
Principal amount | € | € 750 | |||||
Effective Interest Rate | 1.65% | 1.65% | ||||
Total long-term debt | $ 792,000,000 | 842,000,000 | ||||
Floating rate note due 2027 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 19,000,000 | |||||
Effective Interest Rate | 4.37% | 4.37% | ||||
Total long-term debt | $ 18,000,000 | 19,000,000 | ||||
Fixed rate medium term notes due 2027 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 850,000,000 | |||||
Effective Interest Rate | 2.95% | 2.95% | ||||
Total long-term debt | $ 845,000,000 | 844,000,000 | ||||
Fixed rate 30-year debenture due 2028 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 220,000,000 | |||||
Effective Interest Rate | 6.44% | 6.44% | ||||
Total long-term debt | $ 223,000,000 | 224,000,000 | ||||
Floating rate note due 2028 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 150,000,000 | |||||
Effective Interest Rate | 6.49% | 6.49% | ||||
Total long-term debt | $ 129,000,000 | 147,000,000 | ||||
Floating rate note due 2028 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 150,000,000 | |||||
Effective Interest Rate | 6.44% | 6.44% | ||||
Total long-term debt | $ 129,000,000 | 147,000,000 | ||||
Floating rate note due 2028 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 250,000,000 | |||||
Effective Interest Rate | 6.69% | 6.69% | ||||
Total long-term debt | $ 211,000,000 | 240,000,000 | ||||
Floating rate note due 2028 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 150,000,000 | |||||
Effective Interest Rate | 6.64% | 6.64% | ||||
Total long-term debt | $ 127,000,000 | 144,000,000 | ||||
Floating rate note due 2028 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 100,000,000 | |||||
Effective Interest Rate | 6.73% | 6.73% | ||||
Total long-term debt | $ 84,000,000 | 96,000,000 | ||||
Fixed rate medium term note due 2028 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 600,000,000 | |||||
Effective Interest Rate | 3.62% | 3.62% | ||||
Total long-term debt | $ 598,000,000 | 598,000,000 | ||||
Fixed rate medium term note due 2029 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 800,000,000 | |||||
Effective Interest Rate | 3.38% | 3.38% | ||||
Total long-term debt | $ 797,000,000 | 797,000,000 | ||||
Fixed rate registered note due 2029 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 1,000,000,000 | |||||
Effective Interest Rate | 2.50% | 2.50% | ||||
Total long-term debt | $ 989,000,000 | 988,000,000 | ||||
Fixed rate registered note due 2030 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 600,000,000 | $ 600,000,000 | ||||
Effective Interest Rate | 3.09% | 3.09% | 3.05% | |||
Total long-term debt | $ 596,000,000 | 596,000,000 | ||||
Fixed rate Euro medium term note due 2030 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 500,000,000 | |||||
Effective Interest Rate | 1.90% | 1.90% | ||||
Total long-term debt | $ 526,000,000 | 560,000,000 | ||||
Fixed rate Euro medium term notes due 2031 | ||||||
Long-Term Debt | ||||||
Principal amount | € | € 500 | |||||
Effective Interest Rate | 1.54% | 1.54% | ||||
Total long-term debt | $ 530,000,000 | 563,000,000 | ||||
Fixed rate 30-year bond due 2037 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 555,000,000 | |||||
Effective Interest Rate | 5.73% | 5.73% | ||||
Total long-term debt | $ 552,000,000 | 551,000,000 | ||||
Floating rate note due 2040 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 52,000,000 | |||||
Effective Interest Rate | 4.16% | 4.16% | ||||
Total long-term debt | $ 52,000,000 | 52,000,000 | ||||
Floating rate note due 2041 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 96,000,000 | |||||
Effective Interest Rate | 4.16% | 4.16% | ||||
Total long-term debt | $ 96,000,000 | 96,000,000 | ||||
Fixed rate medium term note due 2044 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 325,000,000 | |||||
Effective Interest Rate | 4.05% | 4.05% | ||||
Total long-term debt | $ 315,000,000 | 315,000,000 | ||||
Floating rate note due 2044 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 54,000,000 | $ 60,000,000 | ||||
Effective Interest Rate | 4.16% | 4.16% | ||||
Total long-term debt | $ 53,000,000 | 53,000,000 | ||||
Fixed rate medium term note due 2046 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 500,000,000 | |||||
Effective Interest Rate | 3.37% | 3.37% | ||||
Total long-term debt | $ 478,000,000 | 477,000,000 | ||||
Fixed rate medium term note due 2047 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 500,000,000 | |||||
Effective Interest Rate | 3.68% | 3.68% | ||||
Total long-term debt | $ 492,000,000 | 492,000,000 | ||||
Fixed rate medium term note due 2048 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 650,000,000 | |||||
Effective Interest Rate | 4.07% | 4.07% | ||||
Total long-term debt | $ 638,000,000 | 638,000,000 | ||||
Fixed rate medium term note due 2048 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 500,000,000 | |||||
Effective Interest Rate | 3.78% | 3.78% | ||||
Total long-term debt | $ 504,000,000 | 505,000,000 | ||||
Fixed rate registered note due 2049 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 500,000,000 | $ 1,000,000,000 | ||||
Effective Interest Rate | 3.37% | 3.37% | ||||
Total long-term debt | $ 486,000,000 | 485,000,000 | ||||
Fixed rate registered note due 2050 | ||||||
Long-Term Debt | ||||||
Principal amount | $ 350,000,000 | $ 650,000,000 | $ 650,000,000 | |||
Effective Interest Rate | 3.72% | 3.72% | 3.70% | |||
Total long-term debt | $ 346,000,000 | 346,000,000 | ||||
Other borrowings | ||||||
Long-Term Debt | ||||||
Effective Interest Rate | 0.09% | 0.09% | ||||
Total long-term debt | $ 2,000,000 | $ 2,000,000 |
Long-Term Debt and Short-Term_4
Long-Term Debt and Short-Term Borrowings - Post-Swap Borrowing, Long-Term Debt, Including Current Portion (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt instrument [Line Items] | ||
Carrying Value | $ 15,939 | $ 17,347 |
Fixed-rate debt | ||
Debt instrument [Line Items] | ||
Carrying Value | $ 14,738 | $ 16,053 |
Effective Interest Rate | 2.93% | 2.80% |
Floating-rate debt | ||
Debt instrument [Line Items] | ||
Carrying Value | $ 1,201 | $ 1,294 |
Effective Interest Rate | 5.70% | 1.43% |
Long-Term Debt and Short-Term_5
Long-Term Debt and Short-Term Borrowings - Short-Term Borrowings and Current Portion of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Short-Term Borrowings and Current Portion of Long-Term Debt | ||
Current portion of long-term debt | $ 1,938 | $ 1,291 |
Total short-term borrowings and current portion of long-term debt | $ 1,938 | 1,307 |
Current portion of long-term debt | ||
Short-Term Borrowings and Current Portion of Long-Term Debt | ||
Effective Interest Rate | 1.93% | |
Other borrowings | ||
Short-Term Borrowings and Current Portion of Long-Term Debt | ||
Effective Interest Rate | 0% | |
Short-term borrowings | $ 0 | $ 16 |
Long-Term Debt and Short-Term_6
Long-Term Debt and Short-Term Borrowings - Future Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Maturities of long-term debt | ||
2023 | $ 1,938 | |
2024 | 1,100 | |
2025 | 1,865 | |
2026 | 1,438 | |
2027 | 845 | |
After 2027 | 8,753 | |
Total long-term debt | 15,939 | $ 17,347 |
Floating rate note payments due in next twelve months | $ 149 |
Long-Term Debt and Short-Term_7
Long-Term Debt and Short-Term Borrowings - Credit Facilities and Other Credit Facilities (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations | Food Safety Division | ||
Debt instrument [Line Items] | ||
Value of shares exchanged | $ 1,000 | |
Stand alone letters of credit and bank guarantees | ||
Debt instrument [Line Items] | ||
Amount of stand alone letters of credit and bank guarantees outstanding utilized in connection with normal business activities | $ 318 | |
Revolving credit facility | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations | Food Safety Division | ||
Debt instrument [Line Items] | ||
Value of shares exchanged | 150 | |
Revolving credit facility | The five-year credit facility and the 364-day credit facilities. | ||
Debt instrument [Line Items] | ||
Current borrowing capacity | $ 3,000 | |
Term of debt instrument (in years) | 5 years | |
Maximum increase available subject to lender approval | $ 1,000 | |
Maximum borrowing capacity including portion subject to lender approval | 4,000 | |
Revolving credit facility | 364-day credit facility | ||
Debt instrument [Line Items] | ||
Current borrowing capacity | $ 1,250 | |
Term of debt instrument (in years) | 364 days | |
Revolving credit facility | The five-year credit facility and the 364-day credit facilities | EBITDA Multiple Measurement Input | ||
Debt instrument [Line Items] | ||
Required minimum EBITDA to Interest Ratio | 3 | |
Number of consecutive quarters over which the ratio of required EBITDA to Interest Ratio is calculated | 4 | |
Actual EBITDA to Interest Ratio | 19 |
Long-Term Debt and Short-Term_8
Long-Term Debt and Short-Term Borrowings - Long-Term Debt Issuances and Fixed-to-Floating Interest Rate Swaps (Details) - USD ($) | 1 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2022 | Sep. 30, 2021 | |
Floating rate registered note due 2049 | |||
Debt instrument [Line Items] | |||
Principal amount | $ 500,000,000 | ||
Floating rate registered note due 2050 | London Interbank Offered Rate (LIBOR) | |||
Debt instrument [Line Items] | |||
Principal amount | 300,000,000 | ||
Fixed rate registered note due 2049 | |||
Debt instrument [Line Items] | |||
Principal amount | $ 500,000,000 | 1,000,000,000 | |
Effective interest rate (as a percent) | 3.37% | ||
Fixed rate registered note due 2050 | |||
Debt instrument [Line Items] | |||
Principal amount | $ 650,000,000 | $ 350,000,000 | 650,000,000 |
Term of debt instrument (in years) | 30 years | ||
Effective interest rate (as a percent) | 3.70% | 3.72% | |
Aggregate Fixed Rate Registered Notes | |||
Debt instrument [Line Items] | |||
Principal amount | $ 1,750,000,000 | ||
Fixed rate registered note due 2025 | |||
Debt instrument [Line Items] | |||
Principal amount | $ 500,000,000 | $ 750,000,000 | |
Term of debt instrument (in years) | 5 years | ||
Effective interest rate (as a percent) | 2.65% | 2.12% | |
Fixed rate registered note due 2030 | |||
Debt instrument [Line Items] | |||
Principal amount | $ 600,000,000 | $ 600,000,000 | |
Term of debt instrument (in years) | 10 years | ||
Effective interest rate (as a percent) | 3.05% | 3.09% | |
Interest rate contracts | |||
Debt instrument [Line Items] | |||
Derivative, notional amount | $ 800,000,000 |
Long-Term Debt and Short-Term_9
Long-Term Debt and Short-Term Borrowings - Long-Term Debt Maturities and Extinguishments (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2022 USD ($) | Nov. 30, 2021 EUR (€) | Mar. 31, 2021 USD ($) | Aug. 31, 2020 USD ($) | May 31, 2020 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Feb. 28, 2022 EUR (€) | |
Debt instrument [Line Items] | ||||||||
Loss on extinguishment of debt | $ 10 | |||||||
Principal amount | 1,000 | |||||||
Fixed rate medium term note | ||||||||
Debt instrument [Line Items] | ||||||||
Principal amount | € | € 500,000,000 | |||||||
Repayment of principal amount | $ 600 | |||||||
Fixed rate Eurobond due 2021 | ||||||||
Debt instrument [Line Items] | ||||||||
Debt redeemed | € | € 600,000,000 | |||||||
Fixed rate medium term note due 2022 | ||||||||
Debt instrument [Line Items] | ||||||||
Debt redeemed | $ 450 | |||||||
Coupon rate | 2.75% | |||||||
Loss on extinguishment of debt | $ 11 | $ 11 | ||||||
Fixed rate medium term notes due 2021 | ||||||||
Debt instrument [Line Items] | ||||||||
Principal amount | $ 400 | |||||||
Coupon rate | 3% | |||||||
Fixed rate medium term notes due 2021 | ||||||||
Debt instrument [Line Items] | ||||||||
Principal amount | $ 600 | |||||||
Coupon rate | 1.625% | |||||||
Floating rate euro medium term note due 2020 | ||||||||
Debt instrument [Line Items] | ||||||||
Debt redeemed | € | € 650,000,000 | |||||||
Floating rate medium term note due 2020 | ||||||||
Debt instrument [Line Items] | ||||||||
Debt redeemed | $ 500 |
Long-Term Debt and Short-Ter_10
Long-Term Debt and Short-Term Borrowings - Floating Rate Notes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2004 | Dec. 31, 2022 | |
Floating rate notes due 2027 and 2040 and 2041 | ||
Debt instrument [Line Items] | ||
After date of issuance that put options commence (in years) | 10 years | |
Floating rate note due 2044 | ||
Debt instrument [Line Items] | ||
Repurchase price of floating rate notes (as a percent) | 100% | |
Term of debt instrument (in years) | 40 years | |
Principal amount | $ 60 | $ 54 |
Minimum | Floating rate notes due 2027 and 2040 and 2041 | ||
Debt instrument [Line Items] | ||
Repurchase price of floating rate notes (as a percent) | 99% | 99% |
Maximum | Floating rate notes due 2027 and 2040 and 2041 | ||
Debt instrument [Line Items] | ||
Repurchase price of floating rate notes (as a percent) | 100% | 100% |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Plans - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) country standardPlan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Qualified and Non-qualified Pension Benefits | ||||
Schedule Of Defined Contribution Plans Disclosures | ||||
Company-sponsored retirement plans, minimum number of worldwide plans | standardPlan | 75 | |||
Company-sponsored retirement plans, number of countries | country | 28 | |||
United States | ||||
Schedule Of Defined Contribution Plans Disclosures | ||||
Company match of eligible compensation of employee contributions into 401(k) | 5% | |||
Company cash match of employee contributions for employees hired after January 1, 2009 | 100% | |||
Company contribution to employer retirement income account for employees hired on or after January 1, 2009 | 3% | |||
Expenses related to defined contribution plans | $ 241 | $ 231 | $ 201 | |
International | ||||
Schedule Of Defined Contribution Plans Disclosures | ||||
Expenses related to defined contribution plans | $ 108 | $ 117 | $ 103 | |
International | Qualified and Non-qualified Pension Benefits | ||||
Schedule Of Defined Contribution Plans Disclosures | ||||
Company-sponsored retirement plans, number of countries | country | 25 | |||
International | Funded | United Kingdom Pension Plan | Other Assets | ||||
Schedule Of Defined Contribution Plans Disclosures | ||||
Defined benefit pension plan adjustment | $ 80 | |||
Minimum | United States | ||||
Schedule Of Defined Contribution Plans Disclosures | ||||
Company cash match of employee contributions for employees hired prior to January 1, 2009 | 45% | |||
Maximum | United States | ||||
Schedule Of Defined Contribution Plans Disclosures | ||||
Company cash match of employee contributions for employees hired prior to January 1, 2009 | 60% |
Pension and Postretirement Be_4
Pension and Postretirement Benefit Plans - Change in Benefit Obligation and Plan Assets and Amounts Recognized in Balance Sheet and AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amounts recognized in the Consolidated Balance Sheet as of December 31, (Millions) | |||
Non-current assets | $ 1,225 | $ 943 | |
Accrued benefit cost | |||
Current liabilities | (77) | (78) | |
Non-current liabilities | (1,966) | (2,870) | |
Postretirement Benefits | |||
Change in plan assets | |||
Company contributions | 3 | 3 | |
Unfunded Plans | |||
Benefit Plan Information | |||
Maximum amount of certain nonqualified unfunded pension and postretirement benefit plans obligations not included in benefit obligation reconciliation | 51 | 51 | |
Funded | Qualified and Non-qualified Pension Benefits | |||
Change in plan assets | |||
Company contributions | 155 | 177 | |
Funded | Postretirement Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 2,281 | 2,397 | |
Acquisitions/Transfers | 0 | 0 | |
Service cost | 42 | 53 | $ 43 |
Interest cost | 52 | 43 | 62 |
Participant contributions | 0 | 0 | |
Foreign exchange rate changes | 1 | (4) | |
Plan amendments | 0 | 0 | |
Actuarial (gain) loss | (458) | (89) | |
Benefit payments | (115) | (113) | |
Settlements, curtailments, special termination benefits and other | (6) | (6) | |
Benefit obligation at end of year | 1,797 | 2,281 | 2,397 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 1,353 | 1,376 | |
Acquisitions/Transfers | 0 | 0 | |
Actual return on plan assets | (218) | 93 | |
Company contributions | 3 | 3 | |
Participant contributions | 0 | 0 | |
Foreign exchange rate changes | 0 | 0 | |
Benefit payments | (115) | (113) | |
Settlements, curtailments, special termination benefits and other | (6) | (6) | |
Fair value of plan assets at end of year | 1,017 | 1,353 | 1,376 |
Funded status at end of year | (780) | (928) | |
Amounts recognized in the Consolidated Balance Sheet as of December 31, (Millions) | |||
Non-current assets | 0 | 0 | |
Accrued benefit cost | |||
Current liabilities | (11) | (5) | |
Non-current liabilities | (769) | (923) | |
Ending balance | (780) | (928) | |
Amounts recognized in accumulated other comprehensive income as of December 31, (Millions) | |||
Net transition obligation (asset) | 0 | 0 | |
Net actuarial loss (gain) | 332 | 538 | |
Prior service cost (credit) | (166) | (197) | |
Ending balance | 166 | 341 | |
Funded | United States | Qualified and Non-qualified Pension Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 18,104 | 19,376 | |
Acquisitions/Transfers | 0 | 0 | |
Service cost | 256 | 286 | 261 |
Interest cost | 417 | 360 | 499 |
Participant contributions | 0 | 0 | |
Foreign exchange rate changes | 0 | 0 | |
Plan amendments | 0 | 0 | |
Actuarial (gain) loss | (3,777) | (588) | |
Benefit payments | (1,495) | (1,330) | |
Settlements, curtailments, special termination benefits and other | 0 | 0 | |
Benefit obligation at end of year | 13,505 | 18,104 | 19,376 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 16,953 | 17,127 | |
Acquisitions/Transfers | 0 | 0 | |
Actual return on plan assets | (2,875) | 1,079 | |
Company contributions | 65 | 77 | |
Participant contributions | 0 | 0 | |
Foreign exchange rate changes | 0 | 0 | |
Benefit payments | (1,495) | (1,330) | |
Settlements, curtailments, special termination benefits and other | 0 | 0 | |
Fair value of plan assets at end of year | 12,648 | 16,953 | 17,127 |
Funded status at end of year | (857) | (1,151) | |
Amounts recognized in the Consolidated Balance Sheet as of December 31, (Millions) | |||
Non-current assets | 0 | 0 | |
Accrued benefit cost | |||
Current liabilities | (52) | (59) | |
Non-current liabilities | (805) | (1,092) | |
Ending balance | (857) | (1,151) | |
Amounts recognized in accumulated other comprehensive income as of December 31, (Millions) | |||
Net transition obligation (asset) | 0 | 0 | |
Net actuarial loss (gain) | 4,616 | 4,991 | |
Prior service cost (credit) | (56) | (80) | |
Ending balance | 4,560 | 4,911 | |
Accumulated benefit obligation | 12,967 | 17,305 | |
Plans with accumulated benefit obligation in excess of plan assets | |||
Accumulated benefit obligation | 402 | 514 | |
Fair value of plan assets | 0 | 0 | |
Plans with projected benefit obligation in excess of plan assets | |||
Projected benefit obligation | 13,505 | 18,104 | |
Fair value of plan assets | 12,648 | 16,953 | |
Funded | United States | Postretirement Benefits | |||
Change in plan assets | |||
Fair value of plan assets at beginning of year | 1,353 | ||
Fair value of plan assets at end of year | 1,017 | 1,353 | |
Funded | International | Qualified and Non-qualified Pension Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 7,942 | 8,770 | |
Acquisitions/Transfers | 0 | 0 | |
Service cost | 128 | 164 | 152 |
Interest cost | 125 | 98 | 117 |
Participant contributions | 7 | 10 | |
Foreign exchange rate changes | (567) | (325) | |
Plan amendments | 8 | 1 | |
Actuarial (gain) loss | (2,240) | (433) | |
Benefit payments | (266) | (298) | |
Settlements, curtailments, special termination benefits and other | (65) | (45) | |
Benefit obligation at end of year | 5,072 | 7,942 | 8,770 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 8,016 | 8,194 | |
Acquisitions/Transfers | 0 | 0 | |
Actual return on plan assets | (1,286) | 321 | |
Company contributions | 90 | 100 | |
Participant contributions | 7 | 10 | |
Foreign exchange rate changes | (602) | (265) | |
Benefit payments | (266) | (298) | |
Settlements, curtailments, special termination benefits and other | (68) | (46) | |
Fair value of plan assets at end of year | 5,891 | 8,016 | $ 8,194 |
Funded status at end of year | 819 | 74 | |
Amounts recognized in the Consolidated Balance Sheet as of December 31, (Millions) | |||
Non-current assets | 1,225 | 943 | |
Accrued benefit cost | |||
Current liabilities | (14) | (14) | |
Non-current liabilities | (392) | (855) | |
Ending balance | 819 | 74 | |
Amounts recognized in accumulated other comprehensive income as of December 31, (Millions) | |||
Net transition obligation (asset) | 4 | 6 | |
Net actuarial loss (gain) | 157 | 960 | |
Prior service cost (credit) | 10 | 3 | |
Ending balance | 171 | 969 | |
Accumulated benefit obligation | 4,814 | 7,484 | |
Plans with accumulated benefit obligation in excess of plan assets | |||
Accumulated benefit obligation | 775 | 2,843 | |
Fair value of plan assets | 427 | 2,194 | |
Plans with projected benefit obligation in excess of plan assets | |||
Projected benefit obligation | 851 | 3,204 | |
Fair value of plan assets | $ 442 | $ 2,335 |
Pension and Postretirement Be_5
Pension and Postretirement Benefit Plans - Components of Net Periodic Benefit Cost and Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non-operating expense | |||
Total net periodic benefit cost (benefit) | $ (248) | $ (297) | $ (134) |
Postretirement Benefits | Funded | |||
Operating expense | |||
Service cost | 42 | 53 | 43 |
Non-operating expense | |||
Interest cost | 52 | 43 | 62 |
Expected return on plan assets | (72) | (78) | (80) |
Amortization of transition asset | 0 | 0 | 0 |
Amortization of prior service benefit | (31) | (33) | (33) |
Amortization of net actuarial loss | 40 | 56 | 47 |
Settlements, curtailments, special termination benefits and other | 2 | 3 | 3 |
Total non-operating expense (benefit) | (9) | (9) | (1) |
Total net periodic benefit cost (benefit) | 33 | 44 | 42 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss | |||
Amortization of transition asset | 0 | 0 | 0 |
Prior service cost (benefit) | 0 | 0 | 0 |
Amortization of prior service benefit | 31 | 33 | 33 |
Net actuarial (gain) loss | (166) | (104) | 108 |
Amortization of net actuarial loss | (40) | (56) | (47) |
Foreign currency | 2 | (1) | (7) |
Settlements, curtailments, special termination benefits and other | (2) | (3) | (3) |
Total recognized in other comprehensive (income) loss | (175) | (131) | 84 |
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | (142) | (87) | 126 |
United States | Qualified and Non-qualified Pension Benefits | Funded | |||
Operating expense | |||
Service cost | 256 | 286 | 261 |
Non-operating expense | |||
Interest cost | 417 | 360 | 499 |
Expected return on plan assets | (963) | (1,055) | (1,046) |
Amortization of transition asset | 0 | 0 | 0 |
Amortization of prior service benefit | (24) | (24) | (24) |
Amortization of net actuarial loss | 424 | 529 | 491 |
Settlements, curtailments, special termination benefits and other | 12 | 24 | 16 |
Total non-operating expense (benefit) | (134) | (166) | (64) |
Total net periodic benefit cost (benefit) | 122 | 120 | 197 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss | |||
Amortization of transition asset | 0 | 0 | 0 |
Prior service cost (benefit) | 0 | 0 | 0 |
Amortization of prior service benefit | 24 | 24 | 24 |
Net actuarial (gain) loss | 61 | (614) | 760 |
Amortization of net actuarial loss | (424) | (529) | (491) |
Foreign currency | 0 | 0 | 0 |
Settlements, curtailments, special termination benefits and other | (12) | (23) | (16) |
Total recognized in other comprehensive (income) loss | (351) | (1,142) | 277 |
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | (229) | (1,022) | 474 |
International | Qualified and Non-qualified Pension Benefits | Funded | |||
Operating expense | |||
Service cost | 128 | 164 | 152 |
Non-operating expense | |||
Interest cost | 125 | 98 | 117 |
Expected return on plan assets | (271) | (326) | (306) |
Amortization of transition asset | 2 | 2 | 2 |
Amortization of prior service benefit | 0 | (3) | (5) |
Amortization of net actuarial loss | 29 | 104 | 121 |
Settlements, curtailments, special termination benefits and other | 10 | 3 | 1 |
Total non-operating expense (benefit) | (105) | (122) | (70) |
Total net periodic benefit cost (benefit) | 23 | 42 | 82 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss | |||
Amortization of transition asset | (2) | (2) | (2) |
Prior service cost (benefit) | 8 | 1 | 0 |
Amortization of prior service benefit | 0 | 3 | 5 |
Net actuarial (gain) loss | (689) | (434) | (358) |
Amortization of net actuarial loss | (29) | (104) | (121) |
Foreign currency | (82) | (71) | 79 |
Settlements, curtailments, special termination benefits and other | (4) | (1) | (1) |
Total recognized in other comprehensive (income) loss | (798) | (608) | (398) |
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | $ (775) | $ (566) | $ (316) |
Pension and Postretirement Be_6
Pension and Postretirement Benefit Plans - US Pension Weighted Averages and Expected Returns Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Postretirement Benefits | |||
Asset Allocation assumption | |||
Company contributions | $ 3 | $ 3 | |
Funded | Qualified and Non-qualified Pension Benefits | |||
Asset Allocation assumption | |||
Company contributions | 155 | $ 177 | |
Funded | Qualified and Non-qualified Pension Benefits | Minimum | |||
Asset Allocation assumption | |||
Estimated pension contributions for next fiscal year | 100 | ||
Funded | Qualified and Non-qualified Pension Benefits | Maximum | |||
Asset Allocation assumption | |||
Estimated pension contributions for next fiscal year | $ 200 | ||
Funded | Postretirement Benefits | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 5.25% | 2.88% | 2.50% |
Percentage increase (decrease) in discount rate obligation from the prior year | 2.37% | ||
Weighted-average assumptions used to determine net cost for years ended | |||
Discount rate - service cost | 3.11% | 3.21% | 3.45% |
Discount rate - interest cost | 2.59% | 2.20% | 3% |
Expected return on assets | 5.77% | 6.15% | 6.32% |
Asset Allocation assumption | |||
Company contributions | $ 3 | $ 3 | |
Funded | United States | |||
Weighted-average assumptions used to determine benefit obligations | |||
Original percentage medical inflation indexation by company in year | 3% | ||
Revised percentage medical inflation indexation by company in year | 1.50% | ||
Funded | United States | Qualified and Non-qualified Pension Benefits | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 5.18% | 2.89% | 2.55% |
Compensation rate increase | 3.37% | 3.21% | 3.21% |
Percentage increase (decrease) in discount rate obligation from the prior year | 2.29% | ||
Weighted-average assumptions used to determine net cost for years ended | |||
Discount rate - service cost | 3.10% | 2.81% | 3.41% |
Discount rate - interest cost | 2.38% | 1.92% | 2.87% |
Expected return on assets | 6% | 6.50% | 6.75% |
Compensation rate increase | 3.21% | 3.21% | 3.21% |
Asset Allocation assumption | |||
Company contributions | $ 65 | $ 77 | |
Funded | United States | Qualified and Non-qualified Pension Benefits | Qualified | |||
Company's assumption for the expected return on plan assets | |||
Expected return on assets for next fiscal year (as a percent) | 7.50% | ||
Asset Allocation assumption | |||
Rate of return on plan assets (as a percent) | (17.40%) | 6.70% | 13.60% |
Number years used in the calculation of one average annual actual return on plan assets (in years) | 10 years | ||
Number years used in the calculation of a second average annual actual return on plan assets (in years) | 25 years | ||
Average annual actual return on plan assets over the past 10 years (as a percent) | 5.20% | ||
Average annual actual return on plan assets over the past 25 years (as a percent) | 7.10% | ||
Funded | United States | Qualified and Non-qualified Pension Benefits | Qualified | Equities | |||
Asset Allocation assumption | |||
Asset allocation assumption for next fiscal year (as a percent) | 10% | ||
Funded | United States | Qualified and Non-qualified Pension Benefits | Qualified | Private equity | |||
Asset Allocation assumption | |||
Asset allocation assumption for next fiscal year (as a percent) | 14% | ||
Funded | United States | Qualified and Non-qualified Pension Benefits | Qualified | Fixed Income | |||
Asset Allocation assumption | |||
Asset allocation assumption for next fiscal year (as a percent) | 60% | ||
Funded | United States | Qualified and Non-qualified Pension Benefits | Qualified | Absolute Return | |||
Asset Allocation assumption | |||
Asset allocation assumption for next fiscal year (as a percent) | 16% | ||
Funded | United States | Qualified and Non-qualified Pension Benefits | Primary U.S. Qualified Pension Plan | Qualified | |||
Company's assumption for the expected return on plan assets | |||
Expected return on assets (as a percent) | 6% | ||
Funded | United States | Pension and Postretirement Benefit plans | |||
Weighted-average assumptions used to determine benefit obligations | |||
Impact to the Projected Benefit Obligation (PBO) as a result of a change in discount rate | $ (4,500) | ||
Funded | International | Qualified and Non-qualified Pension Benefits | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 4.39% | 1.80% | 1.38% |
Compensation rate increase | 2.86% | 2.86% | 2.88% |
Weighted-average assumptions used to determine net cost for years ended | |||
Discount rate - service cost | 1.64% | 1.23% | 1.61% |
Discount rate - interest cost | 1.62% | 1.13% | 1.61% |
Expected return on assets | 3.86% | 4.36% | 4.70% |
Compensation rate increase | 2.86% | 2.88% | 2.88% |
Asset Allocation assumption | |||
Company contributions | $ 90 | $ 100 |
Pension and Postretirement Be_7
Pension and Postretirement Benefit Plans - Future Benefit Payments (Details) - Funded $ in Millions | Dec. 31, 2022 USD ($) |
Qualified and Non-qualified Pension Benefits | United States | |
Future Pension and Postretirement Benefit Payments | |
2023 | $ 1,057 |
2024 | 1,061 |
2025 | 1,065 |
2026 | 1,061 |
2027 | 1,059 |
Next five years | 5,155 |
Qualified and Non-qualified Pension Benefits | International | |
Future Pension and Postretirement Benefit Payments | |
2023 | 262 |
2024 | 269 |
2025 | 284 |
2026 | 295 |
2027 | 307 |
Next five years | 1,614 |
Postretirement Benefits | |
Future Pension and Postretirement Benefit Payments | |
2023 | 142 |
2024 | 145 |
2025 | 148 |
2026 | 150 |
2027 | 154 |
Next five years | $ 726 |
Pension and Postretirement Be_8
Pension and Postretirement Benefit Plans - Pension Asset Fair Values (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) standardPlan country | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Qualified and Non-qualified Pension Benefits | |||
Benefit Plan Information | |||
Company-sponsored retirement plans, number of countries | country | 28 | ||
Qualified and Non-qualified Pension Benefits | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | $ 12,648 | $ 16,953 | $ 17,127 |
Qualified and Non-qualified Pension Benefits | International | |||
Benefit Plan Information | |||
Company-sponsored retirement plans, minimum number of international plans | standardPlan | 70 | ||
Company-sponsored retirement plans, number of countries | country | 25 | ||
Qualified and Non-qualified Pension Benefits | International | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | $ 5,891 | 8,016 | 8,194 |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 12,788 | 17,169 | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 2,234 | 4,849 | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 5,909 | 6,543 | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | International | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 6,166 | 8,138 | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 554 | 1,031 | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 3,896 | 4,753 | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 447 | 534 | |
Qualified and Non-qualified Pension Benefits | Equities | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,142 | 3,744 | |
Qualified and Non-qualified Pension Benefits | Equities | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 871 | 3,340 | |
Qualified and Non-qualified Pension Benefits | Equities | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Equities | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Equities | International | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 543 | 1,500 | |
Qualified and Non-qualified Pension Benefits | Equities | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 288 | 750 | |
Qualified and Non-qualified Pension Benefits | Equities | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 252 | 743 | |
Qualified and Non-qualified Pension Benefits | Equities | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 2 | 5 | |
Qualified and Non-qualified Pension Benefits | Equities | International | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 2 | |
Qualified and Non-qualified Pension Benefits | U.S. equities | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 501 | 1,875 | |
Qualified and Non-qualified Pension Benefits | U.S. equities | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | U.S. equities | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | U.S. equities | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 501 | 1,875 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. equities | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 370 | 1,465 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. equities | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. equities | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. equities | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 370 | 1,465 | |
Qualified and Non-qualified Pension Benefits | Index and long/short equity funds | United States | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 271 | 404 | |
Qualified and Non-qualified Pension Benefits | Growth equities | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 59 | 315 | |
Qualified and Non-qualified Pension Benefits | Growth equities | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 99 | 181 | |
Qualified and Non-qualified Pension Benefits | Growth equities | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Growth equities | International | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 158 | 496 | |
Qualified and Non-qualified Pension Benefits | Value equities | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 164 | 328 | |
Qualified and Non-qualified Pension Benefits | Value equities | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 11 | 15 | |
Qualified and Non-qualified Pension Benefits | Value equities | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Value equities | International | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 175 | 343 | |
Qualified and Non-qualified Pension Benefits | Core equities | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 65 | 107 | |
Qualified and Non-qualified Pension Benefits | Core equities | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 142 | 547 | |
Qualified and Non-qualified Pension Benefits | Core equities | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 2 | 5 | |
Qualified and Non-qualified Pension Benefits | Core equities | International | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 209 | 659 | |
Qualified and Non-qualified Pension Benefits | Fixed Income | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 7,248 | 7,939 | |
Qualified and Non-qualified Pension Benefits | Fixed Income | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,354 | 1,439 | |
Qualified and Non-qualified Pension Benefits | Fixed Income | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 5,803 | 6,368 | |
Qualified and Non-qualified Pension Benefits | Fixed Income | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Fixed Income | International | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 4,303 | 4,920 | |
Qualified and Non-qualified Pension Benefits | Fixed Income | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 134 | 127 | |
Qualified and Non-qualified Pension Benefits | Fixed Income | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 3,542 | 3,886 | |
Qualified and Non-qualified Pension Benefits | Fixed Income | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 4 | 14 | |
Qualified and Non-qualified Pension Benefits | Fixed Income | International | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 623 | 893 | |
Qualified and Non-qualified Pension Benefits | U.S. government securities | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,344 | 1,417 | |
Qualified and Non-qualified Pension Benefits | U.S. government securities | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 29 | 716 | |
Qualified and Non-qualified Pension Benefits | U.S. government securities | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | U.S. government securities | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,373 | 2,133 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. government securities | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. government securities | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 70 | 89 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. government securities | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. government securities | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 70 | 89 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. government securities | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 29 | 22 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. government securities | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 327 | 458 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. government securities | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. government securities | International | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 356 | 480 | |
Qualified and Non-qualified Pension Benefits | Preferred and convertible securities | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Preferred and convertible securities | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 44 | 54 | |
Qualified and Non-qualified Pension Benefits | Preferred and convertible securities | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Preferred and convertible securities | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 44 | 54 | |
Qualified and Non-qualified Pension Benefits | Domestic government | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 73 | 73 | |
Qualified and Non-qualified Pension Benefits | Domestic government | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,060 | 1,039 | |
Qualified and Non-qualified Pension Benefits | Domestic government | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 3 | 4 | |
Qualified and Non-qualified Pension Benefits | Domestic government | International | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,136 | 1,116 | |
Qualified and Non-qualified Pension Benefits | U.S. corporate bonds | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 11 | |
Qualified and Non-qualified Pension Benefits | U.S. corporate bonds | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 4,789 | 4,620 | |
Qualified and Non-qualified Pension Benefits | U.S. corporate bonds | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | U.S. corporate bonds | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 4,789 | 4,631 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. corporate bonds | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. corporate bonds | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 871 | 883 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. corporate bonds | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. corporate bonds | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 871 | 883 | |
Qualified and Non-qualified Pension Benefits | Corporate debt securities | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 32 | 32 | |
Qualified and Non-qualified Pension Benefits | Corporate debt securities | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 2,155 | 2,389 | |
Qualified and Non-qualified Pension Benefits | Corporate debt securities | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 10 | |
Qualified and Non-qualified Pension Benefits | Corporate debt securities | International | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 2,188 | 2,431 | |
Qualified and Non-qualified Pension Benefits | Derivative instruments | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 10 | 11 | |
Qualified and Non-qualified Pension Benefits | Derivative instruments | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 6 | |
Qualified and Non-qualified Pension Benefits | Derivative instruments | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Derivative instruments | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 10 | 17 | |
Qualified and Non-qualified Pension Benefits | Other | United States | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 91 | 132 | |
Qualified and Non-qualified Pension Benefits | Private Equity | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,700 | 2,061 | |
Qualified and Non-qualified Pension Benefits | Private Equity | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 58 | |
Qualified and Non-qualified Pension Benefits | Private Equity | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Private Equity | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Private Equity | International | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 438 | 454 | |
Qualified and Non-qualified Pension Benefits | Private Equity | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 2 | 2 | |
Qualified and Non-qualified Pension Benefits | Private Equity | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 50 | 58 | |
Qualified and Non-qualified Pension Benefits | Private Equity | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 2 | 5 | |
Qualified and Non-qualified Pension Benefits | Growth equity | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 58 | |
Qualified and Non-qualified Pension Benefits | Growth equity | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Growth equity | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Growth equity | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 58 | |
Qualified and Non-qualified Pension Benefits | Real estate | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 2 | 2 | |
Qualified and Non-qualified Pension Benefits | Real estate | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 50 | 58 | |
Qualified and Non-qualified Pension Benefits | Real estate | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 2 | 5 | |
Qualified and Non-qualified Pension Benefits | Real estate | International | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 119 | 163 | |
Qualified and Non-qualified Pension Benefits | Real estate | International | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 54 | 65 | |
Qualified and Non-qualified Pension Benefits | Partnership investments | United States | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,700 | 2,003 | |
Qualified and Non-qualified Pension Benefits | Partnership investments | International | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 265 | 226 | |
Qualified and Non-qualified Pension Benefits | Absolute Return | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,880 | 2,727 | |
Qualified and Non-qualified Pension Benefits | Absolute Return | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 1 | |
Qualified and Non-qualified Pension Benefits | Absolute Return | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 85 | 166 | |
Qualified and Non-qualified Pension Benefits | Absolute Return | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Absolute Return | International | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 707 | 1,072 | |
Qualified and Non-qualified Pension Benefits | Absolute Return | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 8 | 7 | |
Qualified and Non-qualified Pension Benefits | Absolute Return | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 20 | |
Qualified and Non-qualified Pension Benefits | Absolute Return | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 439 | 510 | |
Qualified and Non-qualified Pension Benefits | Derivatives | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Derivatives | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 20 | |
Qualified and Non-qualified Pension Benefits | Derivatives | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Derivatives | International | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 20 | |
Qualified and Non-qualified Pension Benefits | Insurance | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Insurance | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Insurance | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 438 | 504 | |
Qualified and Non-qualified Pension Benefits | Insurance | International | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 438 | 504 | |
Qualified and Non-qualified Pension Benefits | Fixed income and other | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 1 | |
Qualified and Non-qualified Pension Benefits | Fixed income and other | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 85 | 166 | |
Qualified and Non-qualified Pension Benefits | Fixed income and other | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Fixed income and other | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 86 | 167 | |
Qualified and Non-qualified Pension Benefits | Hedge fund/fund of funds | United States | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,297 | 1,943 | |
Qualified and Non-qualified Pension Benefits | Partnership investments | United States | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 497 | 617 | |
Qualified and Non-qualified Pension Benefits | Other | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 8 | 7 | |
Qualified and Non-qualified Pension Benefits | Other | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Other | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 6 | |
Qualified and Non-qualified Pension Benefits | Other | International | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Other | International | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 9 | 13 | |
Qualified and Non-qualified Pension Benefits | Hedge funds | International | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 259 | 535 | |
Qualified and Non-qualified Pension Benefits | Cash and Cash Equivalents | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 818 | 698 | |
Qualified and Non-qualified Pension Benefits | Cash and Cash Equivalents | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 8 | 11 | |
Qualified and Non-qualified Pension Benefits | Cash and Cash Equivalents | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 21 | 9 | |
Qualified and Non-qualified Pension Benefits | Cash and Cash Equivalents | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Cash and Cash Equivalents | International | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 175 | 192 | |
Qualified and Non-qualified Pension Benefits | Cash and Cash Equivalents | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 122 | 145 | |
Qualified and Non-qualified Pension Benefits | Cash and Cash Equivalents | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 51 | 46 | |
Qualified and Non-qualified Pension Benefits | Cash and Cash Equivalents | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 8 | 11 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 22 | 9 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | United States | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 789 | 678 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 30 | 20 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | International | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 122 | 145 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | International | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 51 | 46 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | International | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | International | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 2 | 1 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | International | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 173 | 191 | |
Qualified and Non-qualified Pension Benefits | Repurchase agreements and derivative margin activity | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Repurchase agreements and derivative margin activity | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | (1) | 0 | |
Qualified and Non-qualified Pension Benefits | Repurchase agreements and derivative margin activity | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Non-qualified Pension Benefits | Repurchase agreements and derivative margin activity | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | (1) | 0 | |
Qualified and Non-qualified Pension Benefits | Other items to reconcile to fair value of plan assets | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | (140) | (216) | |
Qualified and Non-qualified Pension Benefits | Other items to reconcile to fair value of plan assets | International | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | $ (275) | (122) | |
Postretirement Benefits | Funded | |||
Benefit Plan Information | |||
Percentage of plan assets within 401h account | 72% | ||
Fair value of plan assets | $ 1,017 | 1,353 | $ 1,376 |
Postretirement Benefits | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,017 | 1,353 | |
Postretirement Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,023 | 1,363 | |
Postretirement Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 285 | 505 | |
Postretirement Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 467 | 546 | |
Postretirement Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Equities | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 184 | 400 | |
Postretirement Benefits | Equities | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 168 | 372 | |
Postretirement Benefits | Equities | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Equities | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | U.S. equities | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 145 | 292 | |
Postretirement Benefits | U.S. equities | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | U.S. equities | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | U.S. equities | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 145 | 292 | |
Postretirement Benefits | Non-U.S. equities | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 23 | 80 | |
Postretirement Benefits | Non-U.S. equities | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Non-U.S. equities | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Non-U.S. equities | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 23 | 80 | |
Postretirement Benefits | Index and long/short equity funds | United States | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 16 | 28 | |
Postretirement Benefits | Fixed Income | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 562 | 654 | |
Postretirement Benefits | Fixed Income | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 96 | 110 | |
Postretirement Benefits | Fixed Income | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 461 | 537 | |
Postretirement Benefits | Fixed Income | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | U.S. government securities | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 96 | 109 | |
Postretirement Benefits | U.S. government securities | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 73 | 180 | |
Postretirement Benefits | U.S. government securities | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | U.S. government securities | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 169 | 289 | |
Postretirement Benefits | Non-U.S. government securities | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Non-U.S. government securities | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 5 | 7 | |
Postretirement Benefits | Non-U.S. government securities | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Non-U.S. government securities | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 5 | 7 | |
Postretirement Benefits | U.S. corporate bonds | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 1 | |
Postretirement Benefits | U.S. corporate bonds | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 322 | 291 | |
Postretirement Benefits | U.S. corporate bonds | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | U.S. corporate bonds | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 322 | 292 | |
Postretirement Benefits | Non-U.S. corporate bonds | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Non-U.S. corporate bonds | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 61 | 59 | |
Postretirement Benefits | Non-U.S. corporate bonds | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Non-U.S. corporate bonds | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 61 | 59 | |
Postretirement Benefits | Other | United States | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 5 | 7 | |
Postretirement Benefits | Private Equity | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 99 | 110 | |
Postretirement Benefits | Private Equity | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 3 | |
Postretirement Benefits | Private Equity | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Private Equity | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Growth equity | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 3 | |
Postretirement Benefits | Growth equity | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Growth equity | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Growth equity | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 3 | |
Postretirement Benefits | Partnership investments | United States | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 99 | 107 | |
Postretirement Benefits | Absolute Return | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 110 | 143 | |
Postretirement Benefits | Absolute Return | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Absolute Return | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 5 | 9 | |
Postretirement Benefits | Absolute Return | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Fixed income and other | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Fixed income and other | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 5 | 9 | |
Postretirement Benefits | Fixed income and other | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Fixed income and other | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 5 | 9 | |
Postretirement Benefits | Hedge fund/fund of funds | United States | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 76 | 102 | |
Postretirement Benefits | Partnership investments | United States | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 29 | 32 | |
Postretirement Benefits | Cash and Cash Equivalents | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 68 | 56 | |
Postretirement Benefits | Cash and Cash Equivalents | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 21 | 20 | |
Postretirement Benefits | Cash and Cash Equivalents | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 0 | |
Postretirement Benefits | Cash and Cash Equivalents | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Cash and cash equivalents | United States | Level 1 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 21 | 20 | |
Postretirement Benefits | Cash and cash equivalents | United States | Level 2 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 0 | |
Postretirement Benefits | Cash and cash equivalents | United States | Level 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits | Cash and cash equivalents | United States | Fair Value Measured at Net Asset Value Per Share | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 46 | 36 | |
Postretirement Benefits | Cash and cash equivalents | United States | Levels 1, 2 and 3 | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | 22 | 20 | |
Postretirement Benefits | Other items to reconcile to fair value of plan assets | United States | Funded | |||
Benefit Plan Information | |||
Fair value of plan assets | $ (6) | $ (10) |
Pension and Postretirement Be_9
Pension and Postretirement Benefit Plans - Pension Asset Fair Value Level 3 (Details) - Qualified and Non-qualified Pension Benefits - Level 3 - International - Funded - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Benefit Plan Information | ||
Defined benefit plan increase (decrease) related to aggregate of net purchases and net unrealized gains and losses | $ 24 | $ 7 |
Defined benefit plan increase (decrease) related to currency exchange rates | 42 | 44 |
Defined benefit plan increase (decrease) related to Level 3 assets | $ 66 | $ 51 |
Derivatives - Cash Flow Hedges
Derivatives - Cash Flow Hedges (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | |
Derivatives in Cash Flow Hedging Relationships | ||||
Accumulated other comprehensive income (loss) | $ (6,673,000,000) | $ (6,750,000,000) | ||
Cash flow hedge | ||||
Derivatives in Cash Flow Hedging Relationships | ||||
Accumulated other comprehensive income (loss), unrealized gain (loss) on cash flow hedges | (7,000,000) | |||
After-tax net unrealized gain (loss) anticipated to be reclassified from AOCI to the income statement within next twelve months | $ 68,000,000 | |||
Cash flow hedge | Foreign currency forward/option contracts | ||||
Derivatives in Cash Flow Hedging Relationships | ||||
Maximum length of time hedged in cash flow hedge (in months) | 36 months | |||
Cash flow hedge | Treasury rate lock contracts | ||||
Derivatives in Cash Flow Hedging Relationships | ||||
Derivative, notional amount | $ 500,000,000 | |||
Cash flow hedge | Interest rate swap and treasury lock in aggregate | ||||
Derivatives in Cash Flow Hedging Relationships | ||||
Accumulated other comprehensive income (loss) | $ 143,000,000 | |||
Accumulated other comprehensive income (loss), unrealized gain (loss) on cash flow hedges | $ (94,000,000) |
Derivatives - Cash Flow Hedge_2
Derivatives - Cash Flow Hedges - Gain (Loss) in OCI or Reclassified from AOCI (Details) - Cash flow hedge - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives in Cash Flow Hedging Relationships | |||
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative | $ 159 | $ 108 | $ (113) |
Foreign currency forward/option contracts | |||
Derivatives in Cash Flow Hedging Relationships | |||
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative | 159 | 108 | (111) |
Interest rate contracts | |||
Derivatives in Cash Flow Hedging Relationships | |||
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative | $ 0 | $ 0 | $ (2) |
Derivatives - Fair Value Hedge
Derivatives - Fair Value Hedge (Details) | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2020 USD ($) | Aug. 31, 2015 USD ($) interestRateSwap | Dec. 31, 2017 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2018 USD ($) | Nov. 30, 2013 EUR (€) | |
Interest rate contracts | ||||||||
Derivatives | ||||||||
Derivative, notional amount | $ 800,000,000 | |||||||
Fair value hedges | Interest rate contracts | ||||||||
Derivatives | ||||||||
Number of interest rate swap contracts entered in period | interestRateSwap | 2 | |||||||
Eurobond Due 2021 | Fair value hedges | ||||||||
Derivatives | ||||||||
Principal amount | € | € 600,000,000 | |||||||
Eurobond Due 2021 | Fair value hedges | Interest rate contracts | ||||||||
Derivatives | ||||||||
Derivative, notional amount | € | € 300,000,000 | |||||||
August 2015 medium term notes issued | Fair value hedges | ||||||||
Derivatives | ||||||||
Principal amount | $ 1,500,000,000 | |||||||
Fixed rate medium term note due 2019 | Fair value hedges | Interest rate contracts | ||||||||
Derivatives | ||||||||
Derivative, notional amount | $ 450,000,000 | |||||||
Term of debt instrument (in years) | 3 years | |||||||
Fixed rate medium term note due 2018 | Fair value hedges | Interest rate contracts | ||||||||
Derivatives | ||||||||
Derivative, notional amount | $ 300,000,000 | $ 200,000,000 | ||||||
Term of debt instrument (in years) | 5 years | |||||||
Fixed rate medium term note due 2021 | Fair value hedges | ||||||||
Derivatives | ||||||||
Principal amount | $ 400,000,000 | $ 400,000,000 | ||||||
Fixed rate medium term note due 2021 | Fair value hedges | Interest rate contracts | ||||||||
Derivatives | ||||||||
Derivative, notional amount | $ 200,000,000 | |||||||
Floating rate registered note due 2049 | ||||||||
Derivatives | ||||||||
Principal amount | 500,000,000 | |||||||
Floating rate registered note due 2050 | London Interbank Offered Rate (LIBOR) | ||||||||
Derivatives | ||||||||
Principal amount | 300,000,000 | |||||||
Fixed rate registered note due 2049 | ||||||||
Derivatives | ||||||||
Principal amount | $ 500,000,000 | 1,000,000,000 | ||||||
Fixed rate registered note due 2050 | ||||||||
Derivatives | ||||||||
Principal amount | $ 650,000,000 | 350,000,000 | $ 650,000,000 | |||||
Term of debt instrument (in years) | 30 years | |||||||
Fixed rate 30-year debenture due 2028 | ||||||||
Derivatives | ||||||||
Principal amount | $ 220,000,000 | |||||||
Fixed rate 30-year debenture due 2028 | Fair value hedges | ||||||||
Derivatives | ||||||||
Principal amount | $ 220,000,000 | |||||||
Fixed rate 30-year debenture due 2028 | Fair value hedges | Interest rate contracts | ||||||||
Derivatives | ||||||||
Term of debt instrument (in years) | 30 years |
Derivatives - Cumulative Basis
Derivatives - Cumulative Basis Adjustment for Fair Value Hedges (Details) - Fair value hedges - Long-term debt - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives | ||
Carrying Value of the Hedged Liabilities | $ 903 | $ 997 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities | $ (98) | $ (4) |
Derivatives - Net Investment He
Derivatives - Net Investment Hedges (Details) - Net Investment Hedges € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 EUR (€) | |
Net investment hedges | ||||
Effective portion of net investment hedge reclassified out of other comprehensive income into income | $ 0 | $ 0 | $ 0 | |
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income | 172 | 304 | (352) | |
Foreign currency forward contracts | ||||
Net investment hedges | ||||
Derivative, notional amount | € | € 150 | |||
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income | 10 | 8 | (1) | |
Foreign currency denominated debt | ||||
Net investment hedges | ||||
Face amount of debt designated as a net investment hedge (in euros) | € | € 2,400 | |||
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income | $ 162 | $ 296 | $ (351) |
Derivatives - Statement of Inco
Derivatives - Statement of Income Location and Impact of Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cost of sales | |||
Information regarding cash flow and fair value hedging relationships: | |||
Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of derivatives are recorded | $ 19,232 | $ 18,795 | $ 16,605 |
Other expense (income), net | |||
Information regarding cash flow and fair value hedging relationships: | |||
Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of derivatives are recorded | 147 | 165 | 366 |
Foreign currency forward/option contracts | Derivatives not designated as hedging instruments | Cost of sales | |||
Information regarding derivatives not designated as hedging instruments: | |||
Foreign currency forward/option contracts | (76) | 5 | 2 |
Foreign currency forward/option contracts | Derivatives not designated as hedging instruments | Other expense (income), net | |||
Information regarding derivatives not designated as hedging instruments: | |||
Foreign currency forward/option contracts | 45 | (11) | 43 |
Cash flow hedge | Foreign currency forward/option contracts | Cost of sales | |||
Gain or (loss) on cash flow hedging relationships: | |||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 107 | (38) | 80 |
Cash flow hedge | Foreign currency forward/option contracts | Other expense (income), net | |||
Gain or (loss) on cash flow hedging relationships: | |||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 0 | 0 | 0 |
Cash flow hedge | Interest rate contracts | Cost of sales | |||
Gain or (loss) on cash flow hedging relationships: | |||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 0 | 0 | 0 |
Cash flow hedge | Interest rate contracts | Other expense (income), net | |||
Gain or (loss) on cash flow hedging relationships: | |||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | (9) | (9) | (9) |
Fair value hedges | Interest rate contracts | Cost of sales | |||
Gain or (loss) on fair value hedging relationships: | |||
Hedged items | 0 | 0 | 0 |
Fair value hedges | Interest rate contracts | Other expense (income), net | |||
Gain or (loss) on fair value hedging relationships: | |||
Hedged items | 94 | 16 | 4 |
Fair value hedges | Interest rate contracts | Derivatives designated as hedging instruments | Cost of sales | |||
Gain or (loss) on fair value hedging relationships: | |||
Derivatives designated as hedging instruments | 0 | 0 | 0 |
Fair value hedges | Interest rate contracts | Derivatives designated as hedging instruments | Other expense (income), net | |||
Gain or (loss) on fair value hedging relationships: | |||
Derivatives designated as hedging instruments | $ (94) | $ (16) | $ (4) |
Derivatives - BS Location (Deta
Derivatives - BS Location (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Location and Fair Value Amount of Derivative Instruments | |||
Derivative assets, fair value | $ 217,000,000 | $ 119,000,000 | |
Derivative liability, fair value | 142,000,000 | 33,000,000 | |
Interest rate contracts | |||
Location and Fair Value Amount of Derivative Instruments | |||
Gross Notional Amount | $ 800,000,000 | ||
Derivatives designated as hedging instruments | |||
Location and Fair Value Amount of Derivative Instruments | |||
Derivative assets, fair value | 144,000,000 | 95,000,000 | |
Derivative liability, fair value | 138,000,000 | 29,000,000 | |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Foreign currency forward/option contracts | |||
Location and Fair Value Amount of Derivative Instruments | |||
Gross Notional Amount | 2,368,000,000 | 1,768,000,000 | |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Noncurrent balance sheet location | |||
Location and Fair Value Amount of Derivative Instruments | |||
Gross Notional Amount | 835,000,000 | 800,000,000 | |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Other current assets | |||
Location and Fair Value Amount of Derivative Instruments | |||
Derivative assets, fair value | 89,000,000 | 54,000,000 | |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Other assets | |||
Location and Fair Value Amount of Derivative Instruments | |||
Derivative assets, fair value | 55,000,000 | 41,000,000 | |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Other current liabilities | |||
Location and Fair Value Amount of Derivative Instruments | |||
Derivative liability, fair value | 27,000,000 | 19,000,000 | |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Other liabilities | |||
Location and Fair Value Amount of Derivative Instruments | |||
Derivative liability, fair value | 9,000,000 | 1,000,000 | |
Derivatives designated as hedging instruments | Interest rate contracts | Noncurrent balance sheet location | |||
Location and Fair Value Amount of Derivative Instruments | |||
Gross Notional Amount | 800,000,000 | 800,000,000 | |
Derivatives designated as hedging instruments | Interest rate contracts | Other assets | |||
Location and Fair Value Amount of Derivative Instruments | |||
Derivative assets, fair value | 0 | 0 | |
Derivatives designated as hedging instruments | Interest rate contracts | Other liabilities | |||
Location and Fair Value Amount of Derivative Instruments | |||
Derivative liability, fair value | 102,000,000 | 9,000,000 | |
Derivatives not designated as hedging instruments | |||
Location and Fair Value Amount of Derivative Instruments | |||
Derivative assets, fair value | 73,000,000 | 24,000,000 | |
Derivative liability, fair value | 4,000,000 | 4,000,000 | |
Derivatives not designated as hedging instruments | Foreign currency forward/option contracts | Foreign currency forward/option contracts | |||
Location and Fair Value Amount of Derivative Instruments | |||
Gross Notional Amount | 2,816,000,000 | 3,731,000,000 | |
Derivatives not designated as hedging instruments | Foreign currency forward/option contracts | Other current assets | |||
Location and Fair Value Amount of Derivative Instruments | |||
Derivative assets, fair value | 73,000,000 | 24,000,000 | |
Derivatives not designated as hedging instruments | Foreign currency forward/option contracts | Other current liabilities | |||
Location and Fair Value Amount of Derivative Instruments | |||
Derivative liability, fair value | $ 4,000,000 | $ 4,000,000 |
Derivatives - Offsetting Assets
Derivatives - Offsetting Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Offsetting | ||
Derivative asset, subject to master netting arrangement, before offset | $ 217 | $ 119 |
Derivative asset, subject to master netting arrangement, liability offset | 40 | 25 |
Derivative asset, subject to master netting arrangement, collateral, obligation to return cash not offset | 0 | 0 |
Derivative asset, fair value, offset against collateral, net of not subject to master netting arrangement, policy election | 177 | 94 |
Derivative asset, not subject to master netting arrangement | 0 | 0 |
Derivative asset, not subject to master netting arrangement, deduction | 0 | 0 |
Gross amount of derivative assets presented in the consolidated balance sheet, including not subject to master netting arrangement | 217 | 119 |
Net amount of derivative assets, including not subject to master netting arrangement | $ 177 | $ 94 |
Derivatives - Offsetting Liabil
Derivatives - Offsetting Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Offsetting | ||
Derivative liability, subject to master netting arrangement, before offset | $ 142 | $ 33 |
Derivative liability, subject to master netting arrangement, asset offset | 40 | 25 |
Derivative liability, subject to master netting arrangement, collateral, right to reclaim cash not offset | 0 | 0 |
Derivative liability, fair value, offset against collateral, net of not subject to master netting arrangement, policy election | 102 | 8 |
Derivative liability, not subject to master netting arrangement | 0 | 0 |
Derivative liability, not subject to master netting arrangement deduction | 0 | 0 |
Gross amount of derivative liabilities presented in consolidated balance sheet including not subject to master netting arrangement | 142 | 33 |
Net amount of derivative liabilities, including not subject to master netting arrangements | $ 102 | $ 8 |
Derivatives - Currency Effects
Derivatives - Currency Effects (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign Currency [Abstract] | |||
Year-on-year foreign currency transaction effects, including hedging impact, gain (loss) impact on pre-tax income | $ 127 | $ (105) | $ (21) |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | $ 261 | $ 228 |
Derivative assets, fair value | 217 | 119 |
Derivative liability, subject to master netting arrangement, before offset | 142 | 33 |
Fair value on a recurring basis | Foreign currency forward/option contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative assets, fair value | 217 | 119 |
Derivative liability, subject to master netting arrangement, before offset | 40 | 24 |
Fair value on a recurring basis | Interest rate contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative liability, subject to master netting arrangement, before offset | 102 | 9 |
Fair value on a recurring basis | Commercial paper | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 213 | 109 |
Fair value on a recurring basis | Certificates of deposit/time deposits | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 21 | 14 |
Fair value on a recurring basis | U.S. treasury securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 75 |
Fair value on a recurring basis | U.S. municipal securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 27 | 30 |
Fair value on a recurring basis | Level 1 | Foreign currency forward/option contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative assets, fair value | 0 | 0 |
Derivative liability, subject to master netting arrangement, before offset | 0 | 0 |
Fair value on a recurring basis | Level 1 | Interest rate contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative liability, subject to master netting arrangement, before offset | 0 | 0 |
Fair value on a recurring basis | Level 1 | Commercial paper | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 1 | Certificates of deposit/time deposits | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 1 | U.S. treasury securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 75 |
Fair value on a recurring basis | Level 1 | U.S. municipal securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 2 | Foreign currency forward/option contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative assets, fair value | 217 | 119 |
Derivative liability, subject to master netting arrangement, before offset | 40 | 24 |
Fair value on a recurring basis | Level 2 | Interest rate contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative liability, subject to master netting arrangement, before offset | 102 | 9 |
Fair value on a recurring basis | Level 2 | Commercial paper | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 213 | 109 |
Fair value on a recurring basis | Level 2 | Certificates of deposit/time deposits | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 21 | 14 |
Fair value on a recurring basis | Level 2 | U.S. treasury securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 2 | U.S. municipal securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 3 | Foreign currency forward/option contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative assets, fair value | 0 | 0 |
Derivative liability, subject to master netting arrangement, before offset | 0 | 0 |
Fair value on a recurring basis | Level 3 | Interest rate contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative liability, subject to master netting arrangement, before offset | 0 | 0 |
Fair value on a recurring basis | Level 3 | Commercial paper | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 3 | Certificates of deposit/time deposits | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 3 | U.S. treasury securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 3 | U.S. municipal securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | $ 27 | $ 30 |
Fair Value Measurements - Rec_2
Fair Value Measurements - Recurring Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3) | |||
Beginning balance | $ 30 | $ 34 | $ 46 |
Total gains or losses included in earnings | 0 | 0 | 0 |
Total gains or losses included in other comprehensive income | 0 | 0 | 0 |
Purchases and issuances | 0 | 0 | 10 |
Sales and settlements | (3) | (4) | (22) |
Transfers in and/or out of level 3 | 0 | 0 | 0 |
Ending balance | 27 | 30 | 34 |
Change in unrealized gains or losses for the period included in earnings for securities held at the end of the reporting period | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Basis (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets and Liabilities Measured on Recurring or Nonrecurring Basis | |||||
Goodwill impairment expense | $ 0 | $ 271,000,000 | $ 0 | $ 0 | |
Fair value on a nonrecurring basis | |||||
Assets and Liabilities Measured on Recurring or Nonrecurring Basis | |||||
Long-lived asset impairment charges | 500,000,000 | $ 0 | $ 0 | ||
Goodwill impairment expense | 300,000,000 | ||||
Fair value on a nonrecurring basis | Minimum | |||||
Assets and Liabilities Measured on Recurring or Nonrecurring Basis | |||||
Estimate fair value, discount rates (as a percent) | 11% | ||||
Fair value on a nonrecurring basis | Maximum | |||||
Assets and Liabilities Measured on Recurring or Nonrecurring Basis | |||||
Estimate fair value, discount rates (as a percent) | 12% | ||||
Fair value on a nonrecurring basis | Disposal group, Held-for-sale, Not discontinued operations | |||||
Assets and Liabilities Measured on Recurring or Nonrecurring Basis | |||||
Long-lived asset impairment charges | $ 109,000,000 | ||||
Other current held for sale liabilities | 50,000,000 | $ 50,000,000 | |||
Pre-tax gain on divestitures | $ 800,000,000 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying Value | ||
Financial Instruments | ||
Long-term debt, excluding current portion | $ 14,001 | $ 16,056 |
Fair Value | ||
Financial Instruments | ||
Long-term debt, excluding current portion | $ 12,484 | $ 17,601 |
Commitments and Contingencies -
Commitments and Contingencies - Warranties and Guarantees (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Warranties/Guarantees: | ||
Accrued product warranty liabilities | $ 48 | $ 48 |
Commitments and Contingencies_2
Commitments and Contingencies - Respirator (Details) respirator in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2019 USD ($) respirator | Apr. 30, 2018 USD ($) plaintiff | Dec. 31, 2022 USD ($) party | Dec. 31, 2022 USD ($) party plaintiff | Dec. 31, 2022 USD ($) case party | Dec. 31, 2022 USD ($) lawsuit party | Dec. 31, 2022 USD ($) party | Dec. 31, 2021 USD ($) plaintiff | Dec. 31, 2019 USD ($) | Dec. 31, 2018 lawsuit | |
Respirator Mask/Asbestos Litigation | ||||||||||
Loss contingencies | ||||||||||
Total number of named claimants | plaintiff | 4,028 | 3,876 | ||||||||
Number of years company has been the defendant in Respirator Mask/Asbestos Litigation | 20 years | |||||||||
Number of total claims the Company prevailed after being taken to trial | 15 | 16 | 2 | |||||||
Accrued loss contingency reserve | $ 604,000,000 | $ 604,000,000 | $ 604,000,000 | $ 604,000,000 | $ 604,000,000 | |||||
Increase (decrease) accrued loss contingency reserve | 31,000,000 | |||||||||
Payments for fees and settlements related to litigation | 67,000,000 | |||||||||
Insurance receivables | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | |||||
Respirator Mask/Asbestos Litigation | State court of California | ||||||||||
Loss contingencies | ||||||||||
Number of total claims the Company prevailed after being taken to trial | lawsuit | 1 | |||||||||
Respirator Mask/Asbestos Litigation | State court of Kentucky | ||||||||||
Loss contingencies | ||||||||||
Number of unnamed defendant | plaintiff | 2 | |||||||||
Litigation settlement awarded | $ 2,000,000 | |||||||||
Amount of punitive damages awarded | $ 63,000,000 | |||||||||
Respirator Mask/Asbestos Litigation | Kentucky and West Virginia | ||||||||||
Loss contingencies | ||||||||||
Settlement amount paid | $ 340,000,000 | |||||||||
Respirator Mask/Asbestos Litigation - State of West Virginia | ||||||||||
Loss contingencies | ||||||||||
Amount of punitive damages awarded | $ 5,000 | |||||||||
Number of additional defendants | party | 2 | 2 | 2 | 2 | 2 | |||||
Number of respirators sold | respirator | 5 | |||||||||
Accrued loss contingency reserve | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Respirator Mask/Asbestos Litigation - Aearo Technologies | ||||||||||
Loss contingencies | ||||||||||
Accrued loss contingency reserve | $ 46,000,000 | |||||||||
Quarterly fee paid to Cabot to retain responsibility and liability for products manufactured before July 11, 1995 | $ 100,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Environmental (Details) € in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||
Aug. 31, 2022 plaintiff | Jul. 31, 2022 EUR (€) individual | Dec. 31, 2021 USD ($) | Sep. 30, 2021 EUR (€) | May 31, 2021 individual | Jun. 30, 2020 lawsuit | Jun. 30, 2019 lawsuit | May 31, 2019 lawsuit | Apr. 30, 2019 USD ($) | Mar. 31, 2019 lawsuit facility | Jul. 31, 2018 USD ($) chemical defendant facility mi | Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) lawsuit perfluorinated_material case party | Nov. 30, 2022 party | Mar. 31, 2022 EUR (€) | Nov. 30, 2021 USD ($) | |
Product Liability Litigation | |||||||||||||||||
Increase in liabilities, gross | € 571 | $ 355,000,000 | $ 500,000,000 | ||||||||||||||
Belgium | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of lawsuits pending | party | 9 | 1 | |||||||||||||||
Zwijndrecht Site | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Investment plan for environmental remediation | € | € 125 | € 150 | |||||||||||||||
Investment plan for environmental remediation, period (in years) | 3 years | ||||||||||||||||
City of Decatur, Decatur Utilities, and Morgan County | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Investment plan for environmental remediation | $ | $ 99,000,000 | ||||||||||||||||
Damages awarded | $ | $ 35,000,000 | ||||||||||||||||
Total number of named claimants | plaintiff | 37 | ||||||||||||||||
City Of Guin Water Works And Sewer Board | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Settlement amount paid | $ | $ 30,000,000 | ||||||||||||||||
Environmental Matters - Regulatory Activities | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of years after phase-out decision in May 2000 that the Company stopped manufacturing and using vast majority of perfluorooctanyl compounds | 2 years | ||||||||||||||||
Environmental Matters - Litigation | New Jersey | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of lawsuits filed | 2 | 2 | |||||||||||||||
Number of additional new claims filed | 2 | ||||||||||||||||
Environmental Matters - Litigation | Salem County, New Jersey | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of facilities related to the manufacture and disposal of PFAS | facility | 2 | ||||||||||||||||
Environmental Matters - Litigation | New Hampshire | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of lawsuits filed | 2 | ||||||||||||||||
Environmental Matters - Litigation | Vermont | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of lawsuits filed | 2 | ||||||||||||||||
Environmental Matters - Aqueous Film Forming Foam Litigation | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of putative class action and other lawsuits | 3,350 | ||||||||||||||||
Number of class action lawsuits | 34 | ||||||||||||||||
Number of public water system lawsuits | 200 | ||||||||||||||||
Environmental Matters - Aqueous Film Forming Foam Litigation | Various state courts | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of lawsuits pending | 5 | ||||||||||||||||
Number of lawsuits filed | 8 | ||||||||||||||||
Number of lawsuits served | 50 | ||||||||||||||||
Environmental Matters - Aqueous Film Forming Foam Litigation | Federal court | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of lawsuits pending | 2 | ||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Increase (decrease) accrued loss contingency reserve | $ | $ 659,000,000 | ||||||||||||||||
Litigation payments | $ | $ 479,000,000 | ||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | New Jersey | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of lawsuits filed | 27 | ||||||||||||||||
Number of lawsuits seeking medical monitoring and damages | case | 10 | ||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | U.S. District Court of New York State | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of lawsuits filed | 40 | ||||||||||||||||
Number of additional new claims filed | 5 | ||||||||||||||||
Total number of named claimants | individual | 8 | 24 | |||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | U.S. District Court of Eastern District of New York | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of lawsuits pending | 13 | ||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | Alabama and Georgia | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of putative class action and other lawsuits | 2 | ||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | Delaware. | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of putative class action and other lawsuits | 1 | ||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | Decatur, Alabama | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of perfluorinated materials (FBSA and FBSEE) the company cannot release into "the waters of the United States." | perfluorinated_material | 2 | ||||||||||||||||
Environmental Matters Other Pfc Related Environmental Litigation, Individual Cases | New Jersey | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of lawsuits filed | 16 | ||||||||||||||||
Environmental Matters - Other Environmental Litigation | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Accrued loss contingency reserve | $ | $ 592,000,000 | ||||||||||||||||
Environmental Matters - Other Environmental Litigation | New Jersey | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Approximate number of miles of a river seeking to be cleaned | mi | 8 | ||||||||||||||||
The value the award the plaintiff seeks | $ | $ 165,000,000 | ||||||||||||||||
Number of chemicals of concern in the sediment | chemical | 8 | ||||||||||||||||
Number of commercial drum conditioning facilities | facility | 2 | ||||||||||||||||
Environmental Matters - Other Environmental Litigation | New Jersey | Minimum | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Number of unnamed defendant | defendant | 120 | ||||||||||||||||
Environmental Matters - Remediation | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Accrued loss contingency reserve | $ | $ 29,000,000 | ||||||||||||||||
Number of years remediation payments expected to be paid for applicable sites | 20 years | ||||||||||||||||
Environmental Matters - Other | |||||||||||||||||
Product Liability Litigation | |||||||||||||||||
Accrued loss contingency reserve | $ | $ 0 | ||||||||||||||||
Insurance receivables | $ | $ 8,000,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Product Liability (Details) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
May 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) plaintiff | Jun. 30, 2021 USD ($) | Apr. 30, 2021 USD ($) plaintiff | Dec. 31, 2020 plaintiff | Jun. 30, 2021 lawsuit | Dec. 31, 2022 USD ($) case wave lawsuit | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) case lawsuit wave individual plaintiff | Jul. 31, 2022 USD ($) | |
State court | |||||||||||
Product Liability Litigation | |||||||||||
Number of lawsuits filed | case | 5 | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | |||||||||||
Product Liability Litigation | |||||||||||
Total number of named claimants | plaintiff | 232,000 | ||||||||||
Committed amount to product liability accrual | $ 1,000 | ||||||||||
Pre-tax charge on product liability | $ 1,200 | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | Multi-district litigation (MDL) | |||||||||||
Product Liability Litigation | |||||||||||
Total number of named claimants | plaintiff | 3 | 3 | |||||||||
Amount of punitive damages awarded | $ 6 | ||||||||||
Settlement amount paid | $ 8 | $ 1 | 7 | ||||||||
Initial number of federal bellwether cases | lawsuit | 2 | ||||||||||
Apportioned fault of the company | 62% | ||||||||||
Apportioned fault of the plaintiff | 38% | ||||||||||
Number of lawsuits pending | case | 2,000 | 2,000 | |||||||||
Number of lawsuits filed | lawsuit | 90,700 | ||||||||||
Number of waves of pending lawsuits | wave | 4 | 4 | |||||||||
Number of pending lawsuits per wave | lawsuit | 500 | 500 | |||||||||
Lawsuits pending period (in months) | 14 months | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | Multi-district litigation (MDL) | Maximum | |||||||||||
Product Liability Litigation | |||||||||||
Amount of compensatory damages awarded | $ 1 | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | State court | |||||||||||
Product Liability Litigation | |||||||||||
Total number of named claimants | individual | 1,000 | ||||||||||
Number of lawsuits filed | lawsuit | 40 | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | Pending Litigation | |||||||||||
Product Liability Litigation | |||||||||||
Total number of named claimants | plaintiff | 141,000 | ||||||||||
Number of putative class action and other lawsuits | lawsuit | 14 | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | Aearo Entities | |||||||||||
Product Liability Litigation | |||||||||||
Committed amount to product liability accrual | $ 600 | $ 600 | |||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | Other Investments | Aearo Entities | |||||||||||
Product Liability Litigation | |||||||||||
Committed amount to product liability accrual | 700 | 700 | |||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | Other Liabilities | Aearo Entities | |||||||||||
Product Liability Litigation | |||||||||||
Committed amount to product liability accrual | 900 | 900 | |||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | Other Assets | Aearo Entities | |||||||||||
Product Liability Litigation | |||||||||||
Committed amount to product liability accrual | 300 | 300 | |||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | Contingent Liability Claims | Aearo Entities | |||||||||||
Product Liability Litigation | |||||||||||
Committed amount to product liability accrual | $ 1,200 | $ 1,200 | |||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | Additional Projected Case Expenses | |||||||||||
Product Liability Litigation | |||||||||||
Committed amount to product liability accrual | $ 200 | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Seventh Trial | Multi-district litigation (MDL) | |||||||||||
Product Liability Litigation | |||||||||||
Settlement amount paid | 13 | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Seventh Trial | Post Trial Order Award | Multi-district litigation (MDL) | |||||||||||
Product Liability Litigation | |||||||||||
Settlement amount paid | 8 | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Eighth Trial | Multi-district litigation (MDL) | |||||||||||
Product Liability Litigation | |||||||||||
Settlement amount paid | $ 23 | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Eleventh Trail, Plaintiff Two | Compensatory Damages | Multi-district litigation (MDL) | |||||||||||
Product Liability Litigation | |||||||||||
Total number of named claimants | plaintiff | 2 | ||||||||||
Settlement amount paid | $ 5 | $ 15 | |||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Eleventh Trail, Plaintiff Two | Punitive Damages | Multi-district litigation (MDL) | |||||||||||
Product Liability Litigation | |||||||||||
Settlement amount paid | $ 72 | 40 | |||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Eleventh Trail, Plaintiff Two | Compensatory and Punitive Damages | Multi-district litigation (MDL) | |||||||||||
Product Liability Litigation | |||||||||||
Total number of named claimants | plaintiff | 1 | ||||||||||
Settlement amount paid | 55 | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Eleventh Trail, Plaintiff Two | Post Trial Compensatory and Punitive Damages | Multi-district litigation (MDL) | |||||||||||
Product Liability Litigation | |||||||||||
Settlement amount paid | $ 22 | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Twelfth Trial | Multi-district litigation (MDL) | |||||||||||
Product Liability Litigation | |||||||||||
Total number of named claimants | plaintiff | 1 | ||||||||||
Settlement amount paid | $ 50 | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Thirteenth Trial | Multi-district litigation (MDL) | |||||||||||
Product Liability Litigation | |||||||||||
Settlement amount paid | $ 8 | ||||||||||
Number of lawsuits pending | case | 2,000 | 2,000 | |||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Thirteenth Trial | Compensatory Damages | Multi-district litigation (MDL) | |||||||||||
Product Liability Litigation | |||||||||||
Settlement amount paid | $ 2.2 | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Thirteenth Trial | Post Trial Order Compensatory Damages | Multi-district litigation (MDL) | |||||||||||
Product Liability Litigation | |||||||||||
Settlement amount paid | $ 1.2 | ||||||||||
Product Liability - Bair Hugger | |||||||||||
Product Liability Litigation | |||||||||||
Number of lawsuits pending | case | 3 | 3 | |||||||||
Number of lawsuits filed | lawsuit | 5,258 | ||||||||||
Product Liability - Bair Hugger | Minimum | |||||||||||
Product Liability Litigation | |||||||||||
Total number of named claimants | individual | 5,000 | ||||||||||
Product Liability - Bair Hugger | Canada | |||||||||||
Product Liability Litigation | |||||||||||
Number of lawsuits filed | lawsuit | 1 | ||||||||||
Product Liability - Bair Hugger | U.S. District Court for the District of Minnesota | |||||||||||
Product Liability Litigation | |||||||||||
Number of lawsuits filed | lawsuit | 61 |
Commitments and Contingencies_5
Commitments and Contingencies - Stockholder Litigation (Details) | 2 Months Ended |
Dec. 31, 2019 lawsuit | |
Securities Litigation | U.S. District Court for the District of Minnesota | |
Loss contingencies | |
Number of derivative lawsuits filed | 2 |
Commitments and Contingencies_6
Commitments and Contingencies - Federal False Claims Act / Qui Tam Litigation (Details) - Federal False Claims Act / Qui Tam Litigation | 12 Months Ended | |
Dec. 31, 2022 employee lawsuit | Dec. 31, 2011 lawsuit | |
Loss contingencies | ||
Number of actions declined to intervene | 2 | |
Number of lawsuits pending | 2 | |
Number of former employees | employee | 2 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease expense | |||
Operating lease cost | $ 295 | $ 319 | $ 348 |
Amortization of assets | 15 | 15 | 21 |
Interest on lease liabilities | 2 | 2 | 1 |
Variable lease cost | 135 | 127 | 101 |
Total net lease cost | $ 447 | $ 463 | $ 471 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating leases: | ||
Operating lease right of use assets | $ 829 | $ 858 |
Current operating lease liabilities | 261 | 263 |
Noncurrent operating lease liabilities | 580 | 591 |
Total operating lease liabilities | 841 | 854 |
Finance leases: | ||
Property and equipment, at cost | 218 | 223 |
Accumulated amortization | (126) | (117) |
Property and equipment, net | $ 92 | $ 106 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Current obligations of finance leases | $ 11 | $ 7 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Finance leases, net of current obligations | $ 75 | $ 93 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Total finance lease liabilities | $ 86 | $ 100 |
Weighted average remaining lease term (in years): | ||
Operating leases | 5 years 6 months | 5 years 6 months |
Finance leases | 6 years 3 months 18 days | 6 years 7 months 6 days |
Weighted average discount rate: | ||
Operating leases | 2.20% | 1.80% |
Finance leases | 3.10% | 3.30% |
Leases - Supplemental cash flow
Leases - Supplemental cash flow and other information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 295 | $ 317 | $ 326 |
Operating cash flows from finance leases | 2 | 2 | 1 |
Financing cash flows from finance leases | 25 | 19 | 58 |
Right of use assets obtained in exchange for lease liabilities: | |||
Operating leases | 261 | 342 | 250 |
Finance leases | $ 6 | $ 3 | $ 18 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Finance Leases | ||
2023 | $ 19 | |
2024 | 18 | |
2025 | 11 | |
2026 | 9 | |
2027 | 7 | |
After 2027 | 26 | |
Total | 90 | |
Less: Amounts representing interest | 4 | |
Present value of future minimum lease payments | 86 | $ 100 |
Less: Current obligations | 11 | 7 |
Long-term obligations | 75 | 93 |
Operating Leases | ||
2023 | 268 | |
2024 | 192 | |
2025 | 131 | |
2026 | 83 | |
2027 | 55 | |
After 2027 | 162 | |
Total | 891 | |
Less: Amounts representing interest | 50 | |
Present value of future minimum lease payments | 841 | 854 |
Current operating lease liabilities | 261 | 263 |
Operating lease liabilities | $ 580 | $ 591 |
Leases - Operating leases not y
Leases - Operating leases not yet commenced (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
Additional operating lease commitments that have not yet commenced | $ 14 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 1 Months Ended | 12 Months Ended |
May 31, 2021 shares | Dec. 31, 2022 individual age shares | |
Share-based Compensation Arrangement by Share-based Payment Award Activity | ||
Number of participants with outstanding options, restricted stock, or restricted stock units | individual | 8,357 | |
Retirement age eligibility for employees | age | 55 | |
Retirement eligibility for employees, minimum years of service required (in years) | 10 years | |
Percent of stock-based compensation related to retiree-eligible population (as a percent) | 36% | |
Long Term Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award Activity | ||
Number of shares authorized (in shares) | 26,633,508 | |
Number of shares available for grant | 32,000,000 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amounts recognized in the financial statements | |||
Stock-based compensation expenses | $ 263 | $ 274 | $ 262 |
Income tax benefits | (62) | (100) | (82) |
Stock-based compensation expenses (benefits), net of tax | 201 | 174 | 180 |
Cost of sales | |||
Amounts recognized in the financial statements | |||
Stock-based compensation expenses | 48 | 47 | 50 |
Selling, general and administrative expenses | |||
Amounts recognized in the financial statements | |||
Stock-based compensation expenses | 169 | 185 | 169 |
Research, development and related expenses | |||
Amounts recognized in the financial statements | |||
Stock-based compensation expenses | $ 46 | $ 42 | $ 43 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Options | |||
Beginning balance (in shares) | 34,560 | 35,401 | 33,675 |
Granted (in shares) | 3,776 | 3,612 | 4,777 |
Exercised (in shares) | (2,101) | (4,163) | (2,759) |
Forfeited (in shares) | (729) | (290) | (292) |
Ending balance (in shares) | 35,506 | 34,560 | 35,401 |
Options exercisable (in shares) | 28,210 | 26,956 | 27,537 |
Weighted Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 163.52 | $ 156.23 | $ 151.15 |
Granted (in dollars per share) | 162.39 | 175.04 | 157.25 |
Exercised (in dollars per share) | 98.91 | 110.20 | 93.23 |
Forfeited (in dollars per share) | 176.21 | 182.63 | 181.33 |
Ending balance (in dollars per share) | 166.97 | 163.52 | 156.23 |
Options exercisable (in dollars per share) | $ 167.42 | $ 161.25 | $ 149.67 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted average remaining contractual life for options outstanding (in months) | 57 months | ||
Aggregate intrinsic value for options outstanding | $ 28 | ||
Weighted average remaining contractual life for options exercisable (in months) | 46 months | ||
Aggregate intrinsic value for options exercisable | $ 28 | ||
Stock Options | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | |||
Expiration of annual grants (in years) | 10 years | ||
Compensation expense yet to be recognized | $ 45 | ||
Expense recognition period (in months) | 21 months | ||
Total intrinsic value of stock options exercised | $ 116 | $ 325 | $ 206 |
Cash received from options exercised | 205 | 457 | 256 |
Tax benefit realized from exercise of stock options | $ 24 | $ 69 | $ 44 |
Share- based compensation assumptions | |||
Exercise price (in dollars per share) | $ 162.41 | $ 175.04 | $ 157.24 |
Risk-free interest rate (as a percent) | 1.90% | 0.80% | 1.50% |
Dividend yield (as a percent) | 2.90% | 2.80% | 2.70% |
Expected volatility (as a percent) | 21.80% | 22.60% | 19.70% |
Expected life (months) | 83 months | 83 months | 78 months |
Black-Scholes fair value (in dollars per share) | $ 25.34 | $ 25.33 | $ 21.58 |
Stock Options | Minimum | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | |||
Vesting period (in years) | 1 year | ||
Stock Options | Maximum | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | |||
Vesting period (in years) | 3 years |
Stock-Based Compensation - RSU,
Stock-Based Compensation - RSU, RS, Performance Shares (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted Average Grant Date Fair Value | |||
Tax benefit realized from vesting | $ 62,000,000 | $ 100,000,000 | $ 82,000,000 |
Restricted Stock and Restricted Stock Units | |||
Number of Shares | |||
Beginning balance (in shares) | 1,987 | 1,722 | 1,573 |
Granted (in shares) | 1,102 | 822 | 733 |
Other (in shares) | 0 | 0 | 45 |
Vested/Distributed (in shares) | (557) | (462) | (570) |
Forfeited (in shares) | (157) | (95) | (59) |
Ending balance (in shares) | 2,375 | 1,987 | 1,722 |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 175.96 | $ 189.78 | $ 201.11 |
Granted (in dollars per share) | 160.24 | 176.82 | 157.29 |
Other (in dollars per share) | 0 | 0 | 159.49 |
Vested (in dollars per share) | 197.48 | 228.94 | 176.20 |
Forfeited (in dollars per share) | 169.22 | 176.13 | 196.31 |
Ending balance (in dollars per share) | $ 164.07 | $ 175.96 | $ 189.78 |
Compensation expense yet to be recognized | $ 108,000,000 | ||
Expense recognition period (in months and years) | 23 months | ||
Fair value that vested | $ 88,000,000 | $ 83,000,000 | $ 91,000,000 |
Tax benefit realized from vesting | $ 17,000,000 | $ 16,000,000 | $ 17,000,000 |
Vesting or performance period (in years) | 3 years | ||
Value of dividend equivalents for restricted stock units that are forfeited | $ 0 | ||
Impact on basic earnings per share due to restricted stock units dividends | $ 0 | ||
Performance Shares | |||
Number of Shares | |||
Beginning balance (in shares) | 481 | 423 | 444 |
Granted (in shares) | 269 | 166 | 203 |
Vested/Distributed (in shares) | (116) | (115) | (206) |
Performance change | (196) | 40 | 25 |
Forfeited (in shares) | (47) | (33) | (43) |
Ending balance (in shares) | 391 | 481 | 423 |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 175.12 | $ 188.61 | $ 205.58 |
Granted (in dollars per share) | 144.77 | 176.79 | 153.16 |
Vested (in dollars per share) | 207.49 | 228.80 | 190.84 |
Performance change (in dollars per share) | 153.15 | 176.35 | 166.49 |
Forfeited (in dollars per share) | 155.71 | 171.35 | 172.92 |
Ending balance (in dollars per share) | $ 157.98 | $ 175.12 | $ 188.61 |
Compensation expense yet to be recognized | $ 7,000,000 | ||
Expense recognition period (in months and years) | 19 months | ||
Fair value that vested | $ 21,000,000 | $ 22,000,000 | $ 35,000,000 |
Tax benefit realized from vesting | $ 4,000,000 | $ 4,000,000 | $ 7,000,000 |
Vesting or performance period (in years) | 3 years | ||
Performance shares awarded at estimated number of shares at the end of the performance period (as a percent) | 100% | ||
Performance Shares | Minimum | |||
Weighted Average Grant Date Fair Value | |||
Expense recognition period (in months and years) | 1 year | ||
Number of shares to be delivered based on percent of each performance share granted upon satisfaction of performance conditions (as a percent) | 0% | ||
Performance Shares | Maximum | |||
Weighted Average Grant Date Fair Value | |||
Expense recognition period (in months and years) | 3 years | ||
Number of shares to be delivered based on percent of each performance share granted upon satisfaction of performance conditions (as a percent) | 200% |
Stock-Based Compensation - Gene
Stock-Based Compensation - General Employees Stock Purchase Plan (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amounts recognized in the financial statements | |||
Compensation expense | $ 263 | $ 274 | $ 262 |
Employee Stock | |||
Amounts recognized in the financial statements | |||
Number of shares authorized (in shares) | 60 | ||
Option price, percentage of market value at date of grant (as a percent) | 85% | ||
Weighted-average fair value (in dollars per share) | $ 21.20 | $ 27.80 | $ 23.47 |
Option price, discount from market value at date of grant (as a percent) | 15% | ||
Compensation expense | $ 31 | $ 32 | $ 31 |
Business Segments and Geograp_3
Business Segments and Geographical Information (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of business segments | 4 |
Business Segments and Geograp_4
Business Segments and Geographical Information - Schedule of Business Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Segment Information | |||
Net sales | $ 34,229 | $ 35,355 | $ 32,184 |
Total operating Income | 6,539 | 7,369 | 7,161 |
Gain on business divestitures | 2,724 | 0 | 389 |
Total operating expenses | 27,690 | 27,986 | 25,023 |
Other expense (income), net | 147 | 165 | 366 |
Income before income taxes | 6,392 | 7,204 | 6,795 |
Assets | 46,455 | 47,072 | |
Depreciation and amortization | 1,831 | 1,915 | 1,911 |
Capital Expenditures | 1,749 | 1,603 | 1,501 |
Operating Segments | |||
Business Segment Information | |||
Total operating Income | 5,020 | 7,545 | 7,070 |
Operating Segments | Safety and Industrial | |||
Business Segment Information | |||
Net sales | 11,604 | 11,981 | 10,972 |
Total operating Income | 1,199 | 2,466 | 2,588 |
Assets | 11,730 | 11,744 | |
Depreciation and amortization | 566 | 593 | 562 |
Capital Expenditures | 512 | 339 | 451 |
Operating Segments | Transportation and Electronics | |||
Business Segment Information | |||
Net sales | 8,902 | 9,262 | 8,406 |
Total operating Income | 1,012 | 1,880 | 1,701 |
Assets | 6,453 | 6,999 | |
Depreciation and amortization | 410 | 419 | 429 |
Capital Expenditures | 562 | 453 | 454 |
Operating Segments | Health Care | |||
Business Segment Information | |||
Net sales | 8,421 | 8,597 | 7,832 |
Total operating Income | 1,815 | 2,037 | 1,662 |
Assets | 13,343 | 14,055 | |
Depreciation and amortization | 623 | 636 | 626 |
Capital Expenditures | 272 | 249 | 251 |
Operating Segments | Consumer | |||
Business Segment Information | |||
Net sales | 5,298 | 5,513 | 4,976 |
Total operating Income | 994 | 1,162 | 1,119 |
Assets | 2,753 | 2,783 | |
Depreciation and amortization | 148 | 147 | 140 |
Capital Expenditures | 146 | 109 | 120 |
Corporate and Unallocated | |||
Business Segment Information | |||
Net sales | 4 | 2 | (2) |
Net costs for significant litigation | (877) | (214) | (148) |
Divestiture costs | (60) | 0 | 0 |
Gain on business divestitures | 2,724 | 0 | 389 |
Divestiture-related restructuring actions | (41) | 0 | (55) |
Russia exit charges | (109) | 0 | 0 |
Total corporate special items | 1,637 | (214) | 186 |
Other corporate expense - net | (118) | 38 | (95) |
Total operating expenses | 1,519 | (176) | 91 |
Assets | 12,176 | 11,491 | |
Depreciation and amortization | 84 | 120 | 154 |
Capital Expenditures | $ 257 | $ 453 | $ 225 |
Business Segments and Geograp_5
Business Segments and Geographical Information - Schedule of Geographical Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Business Segment Information | ||
Property, plant and equipment - net | $ 9,178 | $ 9,429 |
Americas | ||
Business Segment Information | ||
Property, plant and equipment - net | 6,066 | 5,864 |
Asia Pacific | ||
Business Segment Information | ||
Property, plant and equipment - net | 1,389 | 1,582 |
Europe, Middle East and Africa | ||
Business Segment Information | ||
Property, plant and equipment - net | 1,723 | 1,983 |
United States | ||
Business Segment Information | ||
Property, plant and equipment - net | 5,662 | 5,484 |
China Hong Kong | ||
Business Segment Information | ||
Property, plant and equipment - net | $ 518 | $ 578 |