Cover
Cover | 9 Months Ended |
Sep. 30, 2023 shares | |
Document Information | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2023 |
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 | 55144-1000 |
City Area Code | 651 |
Local Phone Number | 733-1110 |
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 |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 552,317,038 |
Entity Central Index Key | 0000066740 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q3 |
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 $.01 Per Share |
Trading Symbol | MMM |
Security Exchange Name | CHX |
1.500% Notes due 2026 | New York Stock Exchange | |
Document Information | |
Title of 12(b) Security | 1.500% Notes due 2026 |
Trading Symbol | MMM26 |
Security Exchange Name | NYSE |
1.750% Notes due 2030 | New York Stock Exchange | |
Document Information | |
Title of 12(b) Security | 1.750% Notes due 2030 |
Trading Symbol | MMM30 |
Security Exchange Name | NYSE |
1.500% Notes due 2031 | New York Stock Exchange | |
Document Information | |
Title of 12(b) Security | 1.500% Notes due 2031 |
Trading Symbol | MMM31 |
Security Exchange Name | NYSE |
Consolidated Statement of Incom
Consolidated Statement of Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 8,312 | $ 8,619 | $ 24,668 | $ 26,150 |
Operating expenses | ||||
Cost of sales | 4,580 | 4,728 | 13,799 | 14,647 |
Selling, general and administrative expenses | 5,992 | 1,998 | 19,901 | 6,903 |
Research, development and related expenses | 430 | 461 | 1,375 | 1,417 |
Gain on business divestitures | (36) | (2,724) | (36) | (2,724) |
Total operating expenses | 10,966 | 4,463 | 35,039 | 20,243 |
Operating income (loss) | (2,654) | 4,156 | (10,371) | 5,907 |
Other expense (income), net | 200 | 24 | 317 | 112 |
Income (loss) before income taxes | (2,854) | 4,132 | (10,688) | 5,795 |
Provision (benefit) for income taxes | (781) | 271 | (2,755) | 550 |
Income (loss) of consolidated group | (2,073) | 3,861 | (7,933) | 5,245 |
Income (loss) from unconsolidated subsidiaries, net of taxes | 2 | 2 | 7 | 3 |
Net income (loss) including noncontrolling interest | (2,071) | 3,863 | (7,926) | 5,248 |
Less: Net income (loss) attributable to noncontrolling interest | 4 | 4 | 14 | 12 |
Net income (loss) attributable to 3M | $ (2,075) | $ 3,859 | $ (7,940) | $ 5,236 |
Weighted average 3M common shares outstanding - basic (in shares) | 554.3 | 568.8 | 553.7 | 570.7 |
Earnings (loss) per share attributable to 3M common shareholders — basic (in dollars per share) | $ (3.74) | $ 6.79 | $ (14.34) | $ 9.18 |
Weighted average 3M common shares outstanding - diluted (in shares) | 554.3 | 570 | 553.7 | 572.6 |
Earnings (loss) per share attributable to 3M common shareholders — diluted (in dollars per share) | $ (3.74) | $ 6.77 | $ (14.34) | $ 9.15 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) including noncontrolling interest | $ (2,071) | $ 3,863 | $ (7,926) | $ 5,248 |
Other comprehensive income (loss), net of tax: | ||||
Cumulative translation adjustment | (365) | (821) | (224) | (1,697) |
Defined benefit pension and postretirement plans adjustment | 50 | 86 | 151 | 258 |
Cash flow hedging instruments | 21 | 110 | 20 | 197 |
Total other comprehensive income (loss), net of tax | (294) | (625) | (53) | (1,242) |
Comprehensive income (loss) including noncontrolling interest | (2,365) | 3,238 | (7,979) | 4,006 |
Comprehensive (income) loss attributable to noncontrolling interest | (3) | (2) | (14) | (5) |
Comprehensive income (loss) attributable to 3M | $ (2,368) | $ 3,236 | $ (7,993) | $ 4,001 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 5,140 | $ 3,655 |
Marketable securities — current | 73 | 238 |
Accounts receivable — net of allowances of $155 and $174 | 4,852 | 4,532 |
Inventories | ||
Finished goods | 2,405 | 2,497 |
Work in process | 1,491 | 1,606 |
Raw materials and supplies | 1,169 | 1,269 |
Total inventories | 5,065 | 5,372 |
Prepaids | 578 | 435 |
Other current assets | 490 | 456 |
Total current assets | 16,198 | 14,688 |
Property, plant and equipment | 26,189 | 25,998 |
Less: Accumulated depreciation | (17,185) | (16,820) |
Property, plant and equipment — net | 9,004 | 9,178 |
Operating lease right of use assets | 782 | 829 |
Goodwill | 12,721 | 12,790 |
Intangible assets — net | 4,324 | 4,699 |
Other assets | 6,592 | 4,271 |
Total assets | 49,621 | 46,455 |
Current liabilities | ||
Short-term borrowings and current portion of long-term debt | 3,137 | 1,938 |
Accounts payable | 3,104 | 3,183 |
Accrued payroll | 905 | 692 |
Accrued income taxes | 220 | 259 |
Operating lease liabilities — current | 234 | 261 |
Other current liabilities | 7,866 | 3,190 |
Total current liabilities | 15,466 | 9,523 |
Long-term debt | 12,876 | 14,001 |
Pension and postretirement benefits | 1,846 | 1,966 |
Operating lease liabilities | 550 | 580 |
Other liabilities | 14,152 | 5,615 |
Total liabilities | 44,890 | 31,685 |
Commitments and contingencies | ||
3M Company shareholders’ equity: | ||
Common stock | 9 | 9 |
Additional paid-in capital | 6,903 | 6,691 |
Retained earnings | 37,375 | 47,950 |
Treasury stock, at cost: | (32,889) | (33,255) |
Accumulated other comprehensive income (loss) | (6,726) | (6,673) |
Total 3M Company shareholders’ equity | 4,672 | 14,722 |
Noncontrolling interest | 59 | 48 |
Total equity | 4,731 | 14,770 |
Total liabilities and equity | $ 49,621 | $ 46,455 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Allowances for doubtful accounts receivable | $ 155 | $ 174 |
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) | 552,317,038 | 549,245,105 |
Treasury stock (in shares) | 391,716,018 | 394,787,951 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net income (loss) including noncontrolling interest | $ (7,926) | $ 5,248 |
Adjustments to reconcile net income (loss) including noncontrolling interest to net cash provided by operating activities | ||
Depreciation and amortization | 1,450 | 1,371 |
Company pension and postretirement contributions | (85) | (102) |
Company pension and postretirement expense | 113 | 124 |
Stock-based compensation expense | 222 | 226 |
Gain on business divestitures | (36) | (2,724) |
Deferred income taxes | (3,468) | (495) |
Changes in assets and liabilities | ||
Accounts receivable | (371) | (467) |
Inventories | 236 | (1,018) |
Accounts payable | 118 | 175 |
Accrued income taxes (current and long-term) | (369) | (11) |
Other — net | 14,810 | 1,342 |
Net cash provided by (used in) operating activities | 4,694 | 3,669 |
Cash Flows from Investing Activities | ||
Purchases of property, plant and equipment (PP&E) | (1,257) | (1,243) |
Proceeds from sale of PP&E and other assets | 114 | 65 |
Purchases of marketable securities and investments | (1,143) | (840) |
Proceeds from maturities and sale of marketable securities and investments | 1,292 | 868 |
Proceeds from sale of businesses, net of cash sold | 60 | 13 |
Cash payment from Food Safety business split-off, net of divested cash | 0 | 478 |
Other — net | 28 | 1 |
Net cash provided by (used in) investing activities | (906) | (658) |
Cash Flows from Financing Activities | ||
Change in short-term debt — net | 485 | 340 |
Repayment of debt (maturities greater than 90 days) | (2,434) | (1,179) |
Proceeds from debt (maturities greater than 90 days) | 2,011 | 1 |
Purchases of treasury stock | (31) | (928) |
Proceeds from issuance of treasury stock pursuant to stock option and benefit plans | 245 | 310 |
Dividends paid to shareholders | (2,483) | (2,550) |
Other — net | (16) | (29) |
Net cash provided by (used in) financing activities | (2,223) | (4,035) |
Effect of exchange rate changes on cash and cash equivalents | (80) | (136) |
Net increase (decrease) in cash and cash equivalents | 1,485 | (1,160) |
Cash and cash equivalents at beginning of year | 3,655 | 4,564 |
Cash and cash equivalents at end of period | $ 5,140 | $ 3,404 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 1. Significant Accounting Policies Basis of Presentation The interim consolidated financial statements are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair statement of the Company’s consolidated financial position, results of operations and cash flows for the periods presented. These adjustments consist of normal, recurring items. The results of operations for any interim period are not necessarily indicative of results for the full year. The interim consolidated financial statements and notes are presented as permitted by the requirements for Quarterly Reports on Form 10-Q. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes included in its Annual Report on Form 10-K. In the second quarter of 2023, 3M re-consolidated the Aearo Technology and certain of its related entities (collectively, the "Aearo Entities") as a result of the court dismissal of their voluntary bankruptcy proceedings. 3M had previously deconsolidated these entities in the third quarter of 2022. See additional information in Note 14. Effective in the first quarter of 2023, 3M made changes in the measure of segment operating performance and segment composition used by 3M’s chief operating decision maker—impacting 3M’s disclosed measure of segment profit/loss (business segment operating income (loss)). Also effective in the first quarter of 2023, 3M's Consumer business segment re-aligned from four divisions to three divisions, see additional information in Note 15. 3M's disclosed disaggregated revenue was also updated as a result of these changes, see additional information in Note 2. Information provided herein reflects the impact of these changes for all periods presented. Earnings (Loss) 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 a result of the dilution associated with the Company’s stock-based compensation plans. Certain options outstanding under these stock-based compensation plans were not included in the computation of diluted earnings (loss) per share attributable to 3M common shareholders because they would have had an anti-dilutive effect of 35.6 million and 36.0 million average options for the three and nine months ended September 30, 2023, respectively, and 31.7 million and 28.9 million average options for the three and nine months ended September 30, 2022, respectively. In periods of net losses, these anti-dilutive effects include all weighted option shares outstanding and weighted average shares is the same for the calculations of both basic and diluted loss per share. The computations for basic and diluted earnings (loss) per share follow: Earnings (Loss) Per Share Computations Three months ended Nine months ended (Amounts in millions, except per share amounts) 2023 2022 2023 2022 Numerator: Net income (loss) attributable to 3M $ (2,075) $ 3,859 $ (7,940) $ 5,236 Denominator: Denominator for weighted average 3M common shares outstanding – basic 554.3 568.8 553.7 570.7 Dilution associated with the Company’s stock-based compensation plans — 1.2 — 1.9 Denominator for weighted average 3M common shares outstanding – diluted 554.3 570.0 553.7 572.6 Earnings (loss) per share attributable to 3M common shareholders — basic $ (3.74) $ 6.79 $ (14.34) $ 9.18 Earnings (loss) per share attributable to 3M common shareholders — diluted $ (3.74) $ 6.77 $ (14.34) $ 9.15 Supplier Finance Program Obligations Under supplier finance programs, 3M agrees to pay participating banks the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices, generally within 90 days of the invoice date. 3M or the banks may terminate the agreements with advance notice. Separately, the banks may have arrangements with the suppliers that provide them the option to request early payment from the banks for invoices confirmed by 3M. 3M's outstanding balances of confirmed invoices in the programs as of September 30, 2023 and December 31, 2022 were approximately $320 million and $260 million, respectively. These amounts are included within accounts payable on 3M's consolidated balance sheet. New Accounting Pronouncements Refer to Note 1 to the Consolidated Financial Statements in 3M’s 2022 Annual Report on Form 10-K for a discussion of applicable standards issued and not yet adopted by 3M. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 2. Revenue Contract Balances: Deferred revenue primarily relates to revenue that is recognized over time for one-year software license contracts. Deferred revenue (current portion) as of September 30, 2023 and December 31, 2022 was $501 million and $538 million, respectively. Approximately $110 million and $460 million of the December 31, 2022 balance was recognized as revenue during the three and nine months ended September 30, 2023, respectively, while approximately $100 million and $440 million of the December 31, 2021 balance was recognized as revenue during the three and nine months ended September 30, 2022, respectively. Operating Lease Revenue: Net sales includes rental revenue from durable medical devices as part of operating lease arrangements (reported within the Medical Solutions Division), which was $154 million and $439 million during the three and nine months ended September 30, 2023, respectively, and $145 million and $429 million during the three and nine months ended September 30, 2022, respectively. Disaggregated revenue information: The Company views the following disaggregated disclosures as useful to understanding the composition of revenue recognized during the respective reporting periods: Three months ended Nine months ended Net Sales (Millions) 2023 2022 2023 2022 Abrasives $ 330 $ 339 $ 1,005 $ 1,014 Automotive Aftermarket 316 316 933 900 Closure and Masking Systems 240 266 726 794 Electrical Markets 327 331 980 976 Industrial Adhesives and Tapes 544 598 1,633 1,805 Personal Safety 862 922 2,643 3,021 Roofing Granules 132 122 375 359 Total Safety and Industrial Business Segment 2,751 2,894 8,295 8,869 Advanced Materials 274 297 880 909 Automotive and Aerospace 507 437 1,446 1,325 Commercial Solutions 430 459 1,317 1,361 Electronics 738 813 2,124 2,599 Transportation Safety 222 233 645 653 Total Transportation and Electronics Business Segment 2,171 2,239 6,412 6,847 Food Safety — 63 — 244 Health Information Systems 305 312 907 921 Medical Solutions 1,179 1,150 3,463 3,447 Oral Care 331 308 1,023 1,006 Separation and Purification Sciences 242 235 721 757 Other Health Care 16 8 44 8 Total Health Care Business Group 2,073 2,076 6,158 6,383 Construction and Home Improvement Markets 603 656 1,674 1,819 Home, Health and Auto Care 391 418 1,219 1,283 Stationery and Office 321 335 907 946 Total Consumer Business Group 1,315 1,409 3,800 4,048 Corporate and Unallocated 2 1 3 3 Total Company $ 8,312 $ 8,619 $ 24,668 $ 26,150 Three months ended Nine months ended Net Sales (Millions) 2023 2022 2023 2022 Americas $ 4,769 $ 4,741 $ 13,846 $ 13,930 Asia Pacific 2,097 2,485 6,411 7,702 Europe, Middle East and Africa 1,446 1,393 4,411 4,518 Worldwide $ 8,312 $ 8,619 $ 24,668 $ 26,150 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | NOTE 3. Acquisitions and DivestituresRefer to Note 3 to the Consolidated Financial Statements in 3M's 2022 Annual Report on Form 10-K for more information on relevant pre-2023 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. 2023 acquisitions: There were no acquisitions that closed during the nine months ended September 30, 2023. 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 15 (Business Segments), gains/losses on business divestitures are reflected in Corporate and Unallocated. 2023 divestitures and previously announced divestitures: In August 2023, 3M completed the sale of assets associated with its dental local anesthetic business (part of the Health Care business) to Pierrel S.p.A. for approximately $60 million in cash. The dental local anesthetic business had annual sales of approximately $30 million. The gain on this transaction, net of a loss associated with a previous contingent indemnification obligation from a 2020 divestiture, resulted in a 2023 net pre-tax gain of $36 million. 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 spin-off transaction is intended to be tax-free for U.S. federal income tax purposes and is subject to customary conditions, including the filing and effectiveness of a Form 10 registration statement, receipt of a private letter ruling from the Internal Revenue Service and a tax opinion from external counsel, satisfactory completion of financing, and final approval by the Company’s Board of Directors, among other items. 3M expects to close the transaction in the first half of 2024, subject to required conditions, as well as additional factors such as conditions in the equity and debt markets, other external conditions, and developments involving 3M or any of its businesses, which could delay the completion of the transaction relative to the anticipated timeline. Because the intended transaction is a spin-off, the Health Care business is not classified as held for sale. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | NOTE 4. Goodwill and Intangible Assets Goodwill The goodwill balance by business segment follows: (Millions) Safety and Industrial Transportation and Electronics Health Care Consumer Total Company Balance as of December 31, 2022 $ 4,509 $ 1,501 $ 6,515 $ 265 $ 12,790 Divestiture activity — — (4) — (4) Translation and other (17) (3) (43) (2) (65) Balance as of September 30, 2023 $ 4,492 $ 1,498 $ 6,468 $ 263 $ 12,721 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: (Millions) September 30, December 31, Customer related intangible assets $ 4,046 $ 4,062 Patents 428 426 Other technology-based intangible assets 2,083 2,081 Definite-lived tradenames 1,165 1,166 Other amortizable intangible assets 81 84 Total gross carrying amount 7,803 7,819 Accumulated amortization — customer related (1,901) (1,747) Accumulated amortization — patents (426) (421) Accumulated amortization — other technology-based (1,140) (1,000) Accumulated amortization — definite-lived tradenames (558) (509) Accumulated amortization — other (59) (60) Total accumulated amortization (4,084) (3,737) Total finite-lived intangible assets — net 3,719 4,082 Non-amortizable intangible assets (primarily tradenames) 605 617 Total intangible assets — net $ 4,324 $ 4,699 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. Amortization expense follows: Three months ended Nine months ended (Millions) 2023 2022 2023 2022 Amortization expense $ 122 $ 124 $ 365 $ 384 Expected amortization expense for acquired amortizable intangible assets recorded as of September 30, 2023 follows: (Millions) Remainder of 2023 2024 2025 2026 2027 2028 After 2028 Amortization expense $ 115 $ 452 $ 422 $ 416 $ 392 $ 366 $ 1,556 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 | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Actions | NOTE 5. Restructuring Actions 2023 to 2025 Structural Reorganization Actions In the first quarter of 2023, 3M announced it would undertake structural reorganization actions to reduce the size of the corporate center of the Company, simplify supply chain, streamline 3M’s geographic footprint, reduce layers of management, further align business go-to-market models to customers, and reduce manufacturing roles to align with production volumes. During 2023, management approved and committed to undertake associated actions impacting approximately 5,200 positions resulting in a pre-tax charge of $62 million and $326 million in the third quarter and nine months ended September 30, 2023, respectively. Remaining activities related to the restructuring actions approved and committed under this initiative are expected to be largely completed through the end of 2023. 3M expects to commit to further actions under this initiative. This aggregate initiative beginning in the first quarter of 2023 and continuing through 2025 is expected to impact approximately 8,500 positions worldwide with an expected pr The related restructuring charges for periods presented were recorded in the income (loss) statement as follows: (Millions) Three months ended September 30, 2023 Nine months ended September 30, 2023 Cost of sales $ 4 $ 67 Selling, general and administrative expenses 55 233 Research, development and related expenses 3 26 Total operating income impact $ 62 $ 326 The business segment operating income (loss) impact of these restructuring charges is summarized as follows: Three months ended September 30, 2023 Nine months ended September 30, 2023 (Millions) Employee Related Asset-Related and Other Total Employee Related Asset-Related and Other Total Safety and Industrial $ 10 $ — $ 10 $ 64 $ — $ 64 Transportation and Electronics 9 — 9 46 — 46 Health Care 4 — 4 16 — 16 Consumer 3 — 3 19 — 19 Corporate and unallocated 4 32 36 129 52 181 Total operating expense $ 30 $ 32 $ 62 $ 274 $ 52 $ 326 Restructuring actions, including cash and non-cash impacts, follow: (Millions) Employee-Related Asset-Related and Other Total Expense incurred in the first quarter of 2023 $ 52 $ — $ 52 Incremental expense incurred in the second quarter of 2023 192 20 212 Incremental expense incurred in the third quarter of 2023 30 32 62 Non-cash changes — (52) (52) Cash payments (156) — (156) Accrued restructuring action balance as of September 30, 2023 $ 118 $ — $ 118 2023 to 2025 PFAS Exit Actions As further discussed in Note 14, 3M announced in December 2022 that it will exit all PFAS manufacturing by the end of 2025. In the third quarter of 2023, 3M management approved and committed to undertake certain related workforce actions impacting approximately 100 positions resulting in a pre-tax charge of $40 million primarily impacting cost of sales. These charges are reflected within the Transportation and Electronics business segment. There were no material cash payments during the 2023 periods presented related to these actions. The remaining period of activities related to these approved and committed actions aligns with 3M's PFAS exit timeframe. 2022 Restructuring Actions Operational/Marketing Capability Restructuring: As described in Note 5 in 3M's 2022 Annual Report on Form 10-K, 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. 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. Activities related to this restructuring were largely completed in the third quarter of 2022. Divestiture-Related Restructuring : As described in Note 5 in 3M's 2022 Annual Report on Form 10-K, 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 in 3M's 2022 Annual Report on Form 10-K) 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 associated accrued restructuring balance as of December 31, 2022 was $10 million and remaining activities related to this divestiture-related restructuring were largely completed through the first half of 2023. |
Supplemental Income (Loss) Stat
Supplemental Income (Loss) Statement Information | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Supplemental Income (Loss) Statement Information | NOTE 6. Supplemental Income (Loss) Statement Information Other expense (income), net consists of the following: Three months ended Nine months ended (Millions) 2023 2022 2023 2022 Interest expense $ 304 $ 106 $ 571 $ 347 Interest income (73) (17) (161) (36) Pension and postretirement net periodic benefit cost (benefit) (31) (65) (93) (199) Total $ 200 $ 24 $ 317 $ 112 In addition to interest primarily related to outstanding debt, interest expense includes imputed interest associated with the obligations resulting from the PFAS-related public water systems proposed settlement and the Combat Arms Earplugs settlement (discussed in Note 14). 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 11 for additional details on the components of pension and postretirement net periodic benefit costs. |
Supplemental Equity and Compreh
Supplemental Equity and Comprehensive Income (Loss) Information | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Supplemental Equity and Comprehensive Income (Loss) Information | NOTE 7. Supplemental Equity and Comprehensive Income (Loss) InformationCash dividends declared and paid totaled $1.50 and $1.49 per share for the first, second and third quarters of 2023 and 2022, respectively, or $4.50 and $4.47 per share for the first nine months of 2023 and 2022, respectively. Consolidated Changes in Equity Three months ended September 30, 2023 3M Company Shareholders (Millions) Total Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Non-controlling Interest Balance at June 30, 2023 $ 7,857 $ 6,867 $ 40,290 $ (32,926) $ (6,433) $ 59 Net income (loss) (2,071) (2,075) 4 Other comprehensive income (loss), net of tax: Cumulative translation adjustment (365) (364) (1) Defined benefit pension and post-retirement plans adjustment 50 50 Cash flow hedging instruments 21 21 Total other comprehensive income (loss), net of tax (294) Dividends declared (828) (828) Stock-based compensation 45 45 Reacquired stock (2) (2) Dividend to noncontrolling interest (3) (3) Issuances pursuant to stock option and benefit plans 27 (12) 39 Balance at September 30, 2023 $ 4,731 $ 6,912 $ 37,375 $ (32,889) $ (6,726) $ 59 Three months ended September 30, 2022 3M Company Shareholders (Millions) Total Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Non-controlling Interest Balance at June 30, 2022 $ 13,816 $ 6,616 $ 45,269 $ (30,781) $ (7,362) $ 74 Net income 3,863 3,859 4 Other comprehensive income (loss), net of tax: Cumulative translation adjustment (821) (819) (2) Defined benefit pension and post-retirement plans adjustment 86 86 Cash flow hedging instruments 110 110 Total other comprehensive income (loss), net of tax (625) Dividends declared (850) (850) Stock-based compensation 47 47 Reacquired stock (191) (191) Split-off of Food Safety business (1,988) (1,988) Issuances pursuant to stock option and benefit plans 84 (33) 117 Balance at September 30, 2022 $ 14,156 $ 6,663 $ 48,245 $ (32,843) $ (7,985) $ 76 Nine months ended September 30, 2023 3M Company Shareholders (Millions) Total Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Non-controlling Interest Balance at December 31, 2022 $ 14,770 $ 6,700 $ 47,950 $ (33,255) $ (6,673) $ 48 Net income (loss) (7,926) (7,940) 14 Other comprehensive income (loss), net of tax: Cumulative translation adjustment (224) (224) — Defined benefit pension and post-retirement plans adjustment 151 151 Cash flow hedging instruments 20 20 Total other comprehensive income (loss), net of tax (53) Dividends declared (2,483) (2,483) Stock-based compensation 212 212 Reacquired stock (31) (31) Dividend to noncontrolling interest (3) (3) Issuances pursuant to stock option and benefit plans 245 (152) 397 Balance at September 30, 2023 $ 4,731 $ 6,912 $ 37,375 $ (32,889) $ (6,726) $ 59 Nine months ended September 30, 2022 3M Company Shareholders (Millions) Total Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Non-controlling Interest Balance at December 31, 2021 $ 15,117 $ 6,438 $ 45,821 $ (30,463) $ (6,750) $ 71 Net income 5,248 5,236 12 Other comprehensive income (loss), net of tax: Cumulative translation adjustment (1,697) (1,690) (7) Defined benefit pension and post-retirement plans adjustment 258 258 Cash flow hedging instruments 197 197 Total other comprehensive income (loss), net of tax (1,242) Dividends declared (2,550) (2,550) Stock-based compensation 225 225 Reacquired stock (964) (964) Split-off of Food Safety business (1,988) (1,988) Issuances pursuant to stock option and benefit plans 310 (262) 572 Balance at September 30, 2022 $ 14,156 $ 6,663 $ 48,245 $ (32,843) $ (7,985) $ 76 Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component Three months ended September 30, 2023 (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 June 30, 2023, net of tax: $ (2,688) $ (3,737) $ (8) $ (6,433) Other comprehensive income (loss), before tax: Amounts before reclassifications (340) — 66 (274) Amounts reclassified out — 65 (38) 27 Total other comprehensive income (loss), before tax (340) 65 28 (247) Tax effect (24) (15) (7) (46) Total other comprehensive income (loss), net of tax (364) 50 21 (293) Balance at September 30, 2023, net of tax: $ (3,052) $ (3,687) $ 13 $ (6,726) Three months ended September 30, 2022 (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 June 30, 2022, net of tax: $ (2,814) $ (4,581) $ 33 $ (7,362) Other comprehensive income (loss), before tax: Amounts before reclassifications (773) — 173 (600) Amounts reclassified out — 112 (30) 82 Total other comprehensive income (loss), before tax (773) 112 143 (518) Tax effect (46) (26) (33) (105) Total other comprehensive income (loss), net of tax (819) 86 110 (623) Balance at September 30, 2022, net of tax: $ (3,633) $ (4,495) $ 143 $ (7,985) Nine months ended September 30, 2023 (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, 2022, net of tax: $ (2,828) $ (3,838) $ (7) $ (6,673) Other comprehensive income (loss), before tax: Amounts before reclassifications (232) — 144 (88) Amounts reclassified out 39 194 (119) 114 Total other comprehensive income (loss), before tax (193) 194 25 26 Tax effect (31) (43) (5) (79) Total other comprehensive income (loss), net of tax (224) 151 20 (53) Balance at September 30, 2023, net of tax: $ (3,052) $ (3,687) $ 13 $ (6,726) Nine months ended September 30, 2022 (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, 2021, net of tax: $ (1,943) $ (4,753) $ (54) $ (6,750) Other comprehensive income (loss), before tax: Amounts before reclassifications (1,587) — 307 (1,280) Amounts reclassified out — 339 (52) 287 Total other comprehensive income (loss), before tax (1,587) 339 255 (993) Tax effect (103) (81) (58) (242) Total other comprehensive income (loss), net of tax (1,690) 258 197 (1,235) Balance at September 30, 2022, net of tax: $ (3,633) $ (4,495) $ 143 $ (7,985) Reclassifications out of Accumulated Other Comprehensive Income (Loss) Attributable to 3M Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Location on Income (Loss) Statement Three months ended Nine months ended (Millions) 2023 2022 2023 2022 Cumulative translation adjustment Reclassification adjustment associated with Russia (see Note 13) $ — $ — $ (39) $ — Selling, general and administrative expenses Total before tax — — (39) — Tax effect — — — — Net of tax — — (39) — Defined benefit pension and postretirement plans adjustments Gains (losses) associated with defined benefit pension and postretirement plans amortization Transition asset (1) — (2) (1) Other (expense) income, net Prior service benefit 13 14 40 42 Other (expense) income, net Net actuarial loss (77) (126) (232) (378) Other (expense) income, net Curtailments/Settlements — — — (2) Other (expense) income, net Total before tax (65) (112) (194) (339) Tax effect 15 26 43 81 Provision for income taxes Net of tax (50) (86) (151) (258) Cash flow hedging instruments gains (losses) Foreign currency forward/option contracts 40 33 125 59 Cost of sales Interest rate contracts (2) (3) (6) (7) Interest expense Total before tax 38 30 119 52 Tax effect (9) (7) (27) (12) Provision for income taxes Net of tax 29 23 92 40 Total reclassifications for the period, net of tax $ (21) $ (63) (98) $ (218) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8. Income Taxes The effective tax rate for the third quarter of 2023 was 27.4 percent on a pre-tax loss, compared to 6.6 percent on pre-tax income in the prior year. The primary factors that impacted the comparison of these rates were the third quarter 2023 charge related to the settlement agreement to resolve Combat Arms Earplugs litigation (see Note 14) and the tax efficient structure associated with the third quarter 2022 gain on split-off of the Food Safety business. The effective tax rate for the first nine months of 2023 was 25.8 percent, compared to 9.5 percent in the prior year. The primary factors that impacted the comparison of the nine-month rates were the third quarter 2023 charge related to the settlement agreement to resolve Combat Arms Earplugs litigation, the second quarter 2023 charge related to the proposed settlement agreement with public water systems in the United States regarding PFAS, and the tax impact associated with the second quarter 2022 charge related to steps toward resolving Combat Arms Earplugs litigation (discussed in Note 14), along with the tax efficient structure associated with the third quarter 2022 gain on split-off of the Food Safety business. The total amounts of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of September 30, 2023 and December 31, 2022 are $945 million and $965 million, respectively. It is reasonably possible that the amount of unrecognized tax benefits could significantly change within the next 12 months. At this time, the Company is not able to estimate the range by which these potential events could impact 3M’s unrecognized tax benefits in the next 12 months. At September 30, 2023, 3M’s deferred tax assets, a component of other assets on the consolidated balance sheet, also included a balance of approximately $3.5 billion as a result of the pre-tax charge related to the proposed settlement agreement announced in the second quarter of 2023 with public water systems in the United States regarding PFAS and the third quarter 2023 charge related to the settlement agreement to resolve Combat Arms Earplugs litigation (both discussed in Note 14). As of September 30, 2023 and December 31, 2022, the Company had valuation allowances of $166 million and $115 million on its deferred tax assets, respectively. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2023 | |
Debt Securities, Available-for-Sale [Abstract] | |
Marketable Securities | NOTE 9. 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) September 30, 2023 December 31, 2022 Commercial paper $ — $ 213 Certificates of deposit/time deposits 69 21 U.S. municipal securities 4 4 Current marketable securities 73 238 U.S. municipal securities 23 23 Non-current marketable securities 23 23 Total marketable securities $ 96 $ 261 At September 30, 2023 and December 31, 2022, gross unrealized, gross realized, and net realized gains and/or losses (pre-tax) were not material. The balances at September 30, 2023 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) September 30, 2023 Due in one year or less $ 73 Due after one year through five years 15 Due after five years through ten years 8 Total marketable securities $ 96 |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Borrowings | NOTE 10. Long-Term Debt and Short-Term Borrowings In February 2023, 3M repaid $500 million aggregate principal amount of fixed-rate registered notes that matured. In March 2023, 3M repaid $650 million aggregate principal amount of fixed-rate medium-term notes that matured. In May 2023, 3M repaid 600 million euros aggregate principal amount of fixed-rate medium-term notes that matured. 2022 issuances, maturities, and extinguishments of short- and long-term debt are described in Note 12 to the Consolidated Financial Statements in 3M's 2022 Annual Report on Form 10-K. The Company had $1.9 billion in commercial paper outstanding at September 30, 2023, compared to no commercial paper outstanding as of December 31, 2022. In May 2023, 3M entered into a $4.25 billion five-year revolving credit facility expiring in 2028; the facility was amended in July and September 2023. The revolving credit agreement includes a provision under which 3M may request an increase of up to $1.0 billion (at lender’s discretion), bringing the total facility up to $5.25 billion. The agreement replaced the amended and restated $3.0 billion, five-year revolving credit agreement and the $1.25 billion 364-day credit facility that would have expired in November 2024 and November 2023, respectively. The credit facility was undrawn at September 30, 2023. Under the $4.25 billion credit facility, the Company is required to maintain its EBITDA to Interest Ratio as of the end of each fiscal quarter at not less than 3.0 to 1. This is calculated (based on amounts defined in the amended agreement) as the ratio of consolidated total EBITDA for the four consecutive quarters then ended to total interest expense on all funded debt for the same period. At September 30, 2023, this ratio was approximately 15 to 1. Debt covenants do not restrict the payment of dividends. 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 September 30, 2023. The maturities of long-term debt for the periods subsequent to September 30, 2023 are as follows (in millions): Remainder of 2023 2024 2025 2026 2027 2028 After 2028 Total $ 149 $ 1,100 $ 1,866 $ 1,433 $ 846 $ 701 $ 8,030 $ 14,125 |
Pension and Postretirement Bene
Pension and Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefit Plans | NOTE 11. Pension and Postretirement Benefit Plans 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. 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 three and nine months ended September 30, 2023 and 2022 follow: Benefit Plan Information Three months ended September 30, Qualified and Non-qualified Pension Benefits Postretirement Benefits United States International (Millions) 2023 2022 2023 2022 2023 2022 Net periodic benefit cost (benefit) Operating expense Service cost $ 42 $ 64 $ 21 $ 32 $ 6 $ 10 Non-operating expense Interest cost 166 105 56 32 21 13 Expected return on plan assets (243) (241) (76) (69) (20) (17) Amortization of transition asset — — 1 — — — Amortization of prior service benefit (6) (6) — — (7) (8) Amortization of net actuarial loss 73 106 2 10 2 10 Total non-operating expense (benefit) (10) (36) (17) (27) (4) (2) Total net periodic benefit cost (benefit) $ 32 $ 28 $ 4 $ 5 $ 2 $ 8 Nine months ended September 30, Qualified and Non-qualified Pension Benefits Postretirement Benefits United States International (Millions) 2023 2022 2023 2022 2023 2022 Net periodic benefit cost (benefit) Operating expense Service cost $ 128 $ 192 $ 60 $ 100 $ 18 $ 31 Non-operating expense Interest cost 497 313 165 96 66 39 Expected return on plan assets (731) (723) (226) (211) (58) (52) Amortization of transition asset — — 2 1 — — Amortization of prior service benefit (18) (18) 1 — (23) (24) Amortization of net actuarial loss 220 318 6 30 6 30 Settlements, curtailments, special termination benefits and other — — — — — 2 Total non-operating expense (benefit) (32) (110) (52) (84) (9) (5) Total net periodic benefit cost (benefit) $ 96 $ 82 $ 8 $ 16 $ 9 $ 26 |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 12. 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. Note 14 to the Consolidated Financial Statements in 3M's 2022 Annual Report on Form 10-K explains the types of derivatives and financial instruments used by 3M, how and why 3M uses such instruments, and how such instruments are accounted for. It also contains information regarding previously initiated contracts or instruments. 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 7. • Fair value of derivative instruments is included in Note 13. • Derivatives and/or hedging instruments associated with the Company’s long-term debt are described in Note 12 to the Consolidated Financial Statements in 3M's 2022 Annual Report on Form 10-K. Refer to the section below titled Statement of Income (Loss) 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 (loss) 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. As of September 30, 2023, the Company had a balance of $13 million associated with the after-tax net unrealized gain associated with cash flow hedging instruments recorded in accumulated other comprehensive income (loss). This includes a remaining balance of $89 million (after-tax loss) related to forward starting interest rate swap and treasury rate lock contracts, which will be amortized over the respective lives of the underlying notes. Based on exchange rates as of September 30, 2023, of the total after-tax net unrealized balance as of September 30, 2023, 3M expects to reclassify approximately $84 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 (loss) related to derivative instruments designated as cash flow hedges is provided in the following table. Pretax Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivative Three months ended Nine months ended (Millions) 2023 2022 2023 2022 Foreign currency forward/option contracts $ 66 $ 173 $ 144 $ 307 Interest rate contracts — — — — Total $ 66 $ 173 $ 144 $ 307 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: 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 (Millions) September 30, December 31, September 30, December 31, Long-term debt $ 886 $ 903 $ (117) $ (98) At September 30, 2023, 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 1.8 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 (loss) 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 (Loss) Three months ended Nine months ended (Millions) 2023 2022 2023 2022 Foreign currency denominated debt $ 60 $ 188 $ (5) $ 380 Foreign currency forward contracts 5 11 2 22 Total $ 65 $ 199 $ (3) $ 402 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 (Loss) 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 (loss) 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 (Loss) Three months ended September 30, Nine months ended September 30, Cost of sales Other expense (income), net Cost of sales Other expense (income), net (Millions) 2023 2022 2023 2022 2023 2022 2023 2022 Information regarding cash flow and fair value hedging relationships: Total amounts of income and expense line items presented in the consolidated statement of income (loss) in which the effects of derivatives are recorded $ 4,580 $ 4,728 $ 200 $ 24 $ 13,799 $ 14,647 $ 317 $ 112 Gain or (loss) on cash flow hedging relationships: Foreign currency forward/option contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income 40 33 — — 125 59 — — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — — (2) (3) — — (6) (7) Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items — — 21 36 — — 18 107 Derivatives designated as hedging instruments — — (21) (36) — — (18) (107) Information regarding derivatives not designated as hedging instruments: Gain or (loss) on derivatives not designated as instruments: Foreign currency forward/option contracts (1) (44) (2) (21) (6) (110) 11 3 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 September 30, December 31, September 30, December 31, September 30, December 31, Derivatives designated as hedging instruments Foreign currency forward/option contracts $ 1,866 $ 2,368 Other current assets $ 112 $ 89 Other current liabilities $ 7 $ 27 Foreign currency forward/option contracts 529 835 Other assets 42 55 Other liabilities 2 9 Interest rate contracts 800 800 Other assets — — Other liabilities 120 102 Total derivatives designated as hedging instruments 154 144 129 138 Derivatives not designated as hedging instruments Foreign currency forward/option contracts 776 2,816 Other current assets 6 73 Other current liabilities 10 4 Total derivatives not designated as hedging instruments 6 73 10 4 Total derivative instruments $ 160 $ 217 $ 139 $ 142 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) September 30, December 31, September 30, December 31, September 30, December 31, September 30, December 31, Derivatives subject to master netting agreements $ 160 $ 217 $ 19 $ 40 $ — $ — $ 141 $ 177 Derivatives not subject to master netting agreements — — — — Total $ 160 $ 217 $ 141 $ 177 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) September 30, December 31, September 30, December 31, September 30, December 31, September 30, December 31, Derivatives subject to master netting agreements $ 139 $ 142 $ 19 $ 40 $ — $ — $ 120 $ 102 Derivatives not subject to master netting agreements — — — — Total $ 139 $ 142 $ 120 $ 102 Currency Effects 3M estimates that year-on-year foreign currency transaction effects, including hedging impacts, decreased pre-tax loss by approximately $18 million and $92 million for the three and nine months ended September 30, 2023, respectively, and increased pre-tax income by approximately $43 million and $70 million for the three and nine months ended September 30, 2022, respectively. These estimates include transaction gains and losses, including derivative instruments designed to reduce foreign currency exchange rate risks. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 13. 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. In addition to the information above, refer to Note 15 to the Consolidated Financial Statements in 3M's 2022 Annual Report on Form 10-K for a qualitative discussion of the assets and liabilities that are measured at fair value on a recurring and nonrecurring basis, a description of the valuation methodologies used by 3M, and categorization within the valuation framework of ASC 820. 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) September 30, December 31, September 30, December 31, September 30, December 31, September 30, December 31, Assets: Available-for-sale: Marketable securities: Commercial paper $ — $ 213 $ — $ — $ — $ 213 $ — $ — Certificates of deposit/time deposits 69 21 — — 69 21 — — U.S. municipal securities 27 27 — — — — 27 27 Derivative instruments — assets: Foreign currency forward/option contracts 160 217 — — 160 217 — — Liabilities: Derivative instruments — liabilities: Foreign currency forward/option contracts 19 40 — — 19 40 — — Interest rate contracts 120 102 — — 120 102 — — 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 Three months ended Nine months ended (Millions) 2023 2022 2023 2022 Beginning balance $ 27 $ 30 $ 27 $ 30 Total gains or losses: Included in earnings (losses) — — — — Included in other comprehensive income (loss) — — — — Purchases and issuances — — — — Sales and settlements — — — — Transfers in and/or out of level 3 — — — — Ending balance $ 27 $ 30 $ 27 $ 30 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 the first nine months of 2023 and 2022. As discussed in Note 15 to the Consolidated Financial Statements in 3M's 2022 Annual Report on Form 10-K, in the third quarter of 2022, management committed to a plan to exit and dispose of net assets in Russia through an intended sale of related subsidiaries and, as a result, recorded 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 would be eliminated upon sale was included and a current liability of approximately $50 million was recorded largely representing a reserve against the balance of cumulative translation adjustment. In the second quarter of 2023, 3M closed on the sale of these subsidiaries, resulting in an immaterial gain after reversing this reserve while reclassifying the balance of cumulative translation adjustment into earnings. 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: September 30, 2023 December 31, 2022 (Millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, excluding current portion $ 12,876 $ 10,970 $ 14,001 $ 12,484 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 14. Commitments and Contingencies 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 relate to matters including, but 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. The categories of legal proceedings in which the Company is involved may include multiple lawsuits and claims, may be spread across multiple jurisdictions and courts which may handle the lawsuits and claims differently, may involve numerous and different types of plaintiffs, raising claims and legal theories based on specific allegations that may not apply to other matters, and may seek substantial compensatory and, in some cases, punitive, damages. These and other factors contribute to the complexity of these lawsuits and claims and make it difficult for the Company to predict outcomes and make reasonable estimates of any resulting losses. The Company's ability to predict outcomes and make reasonable estimates of potential losses is further influenced by the fact that a resolution of one or more matters within a category of legal proceedings may impact the resolution of other matters in that category in terms of timing, amount of liability, or both. 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. Based on experience and developments, the Company reexamines its estimates of probable liabilities and associated expenses and receivables each period, and whether a loss previously determined to not be reasonably estimable and/or not probable is now able to be reasonably estimated or has become probable. Where appropriate, the Company makes additions to or adjustments of its reasonably estimated losses and/or accruals. As a result, the current accruals and/or estimates of loss and the 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 will likely change over time. Because litigation is subject to inherent uncertainties, and unfavorable rulings or developments could occur, the Company may ultimately incur charges substantially in excess of presently recorded liabilities, including with respect to matters for which no accruals are currently recorded because losses are not currently probable and reasonably estimable. Many of the matters described herein are at varying stages, seek an indeterminate amount of damages or seek damages in amounts that the Company believes are not indicative of the ultimate losses that may be incurred. It is not uncommon for claims to be resolved over many years. As a matter progresses, the Company may receive information, through plaintiff demands, through discovery, in the form of reports of purported experts, or in the context of settlement or mediation discussions that purport to quantify an amount of alleged damages, but with which the Company may not agree. Such information may or may not lead the Company to determine that it is able to make a reasonable estimate as to a probable loss or range of loss in connection with a matter. However, even when a loss or range of loss is not probable and reasonably estimable, developments in, or the ultimate resolution of, a matter could be material to the Company and could have a material adverse effect on the Company, its consolidated financial position, results of operations and cash flows. In addition, future adverse rulings or developments, or settlements in, one or more matters could result in future changes to determinations of probable and reasonably estimable losses in other matters. 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 September 30, 2023, the Company is a named defendant, with multiple co-defendants, in numerous lawsuits in various courts that purport to represent approximately 3,980 individual claimants, compared to approximately 4,028 individual claimants with actions pending December 31, 2022. 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 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 a substantial majority of the growth in case numbers referred to above. The rate of coal mine dust-related case filings decelerated in 2022 and has stayed significantly lower than in 2021. 3M moved two cases involving over 400 plaintiffs to federal court based on, among others, the Class Action Fairness Act. The federal district court remanded the cases to state court. In March 2023, the Sixth Circuit Court of Appeals granted 3M's petition to review the remand order, and in April 2023 reversed the district court's remand order; accordingly, those cases will remain in federal court. 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. In the first quarter of 2023, a bench trial for the unfair trade practices claims was continued indefinitely. 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 this analysis to develop its 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, and 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 the first nine months of 2023 for respirator mask/asbestos liabilities by $64 million. In the first nine months of 2023, the Company made payments for legal defense costs and settlements of $67 million related to the respirator mask/asbestos litigation. As of September 30, 2023, the Company had an accrual for respirator mask/asbestos liabilities (excluding Aearo accruals) of $601 million. This accrual represents the Company’s 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 (i) the 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 fact that 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 September 30, 2023, 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). The U.S. Bankruptcy Court had stayed the Aearo respirator mask/asbestos litigation matters during the chapter 11 proceedings. With the June 2023 dismissal of the Aearo bankruptcy that is described in the Product Liability Litigation section below, the stay of respirator mask/asbestos litigation is no longer in effect. For additional information, see the discussion within the section Product Liability Litigation with respect to Aearo Technologies Dual-Ended Combat Arms Earplugs. During the voluntary chapter 11 proceedings, 3M's accrual relating to the commitments associated with funding that trust included Aearo respirator mask/asbestos matters. However, following the June 2023 dismissal of the Aearo bankruptcy, the Company, through its Aearo subsidiary, had accruals of $54 million as of September 30, 2023 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, which are enforceable by national, state, and local authorities around the world, and many for which private parties in the United States and abroad may 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 investigation and 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 sulfonic acid ("PFHxS"), perfluorobutane sulfonate ("PFBS"), hexafluoropropylene 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 those compounds within approximately two years of the phase-out announcement and ceased all manufacturing and the last significant use of those compounds 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 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 with respect to PFAS: 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 is progressing toward exiting all PFAS manufacturing by the end of 2025. 3M is also working to discontinue the use of PFAS across its product portfolio by the end of 2025. 3M has already eliminated the PFAS use in certain product categories, and has made progress across its product portfolio in a variety of applications. With respect to PFAS-containing products not manufactured by 3M but manufactured by companies other than 3M in the Company's supply chains, the Company continues to evaluate the availability of third-party products that do not contain PFAS. Depending on the availability and feasibility of such third-party products not containing PFAS, the Company continues to evaluate whether there may be some circumstances in which the use of PFAS-containing materials manufactured by third parties and used in certain applications in 3M’s product portfolios, such as lithium ion batteries and printed circuit boards widely used in commerce across a variety of industries, may continue beyond 2025. In such instances, the Company intends to continue to evaluate the adoption of third-party products that do not contain PFAS to the extent such products are available and such adoption is feasible. 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 and environmental media, 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 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 3M products or generated as byproducts or degradation products from production processes. If such activity continues, including if 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 environmental 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) are listed under several Annexes of the POPs Regulation, resulting in a ban in manufacture, placing on the market and use as well as some waste management requirements of these substances in EU Member States. These substances 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 February 2023, an EU-wide restriction on the manufacturing, use, placing on the market and import of certain perfluorocarboxylic acids (C9-C14 PFCAs), which are PFAS substances, went into effect. In February 2023, the European Chemicals Agency published the proposal it received in January 2023 from the national authorities of Germany, Denmark, the Netherlands, Norway and Sweden to restrict PFAS under the European Union’s chemicals regulation. The proposal aims to restrict the manufacture, placing on the market and use of PFAS under REACH, subject to certain exceptions. In March 2023, the six-month consultation phase on the PFAS Restriction Proposal started and, in September 2023, the Company submitted comments to the proposal. Depending on the timing, scope and obligations contained in any final rule, PFAS manufacturers and manufacturers of PFAS containing products including 3M Belgium could incur additional costs and potential exposures, including future compliance costs, possible litigation and/or enforcement actions. Effective January 2023, the EU Food Contaminants Regulation targeting four PFAS (PFOS, PFOA, perfluorononanoic acid ("PFNA"), and 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. Further sampling and assessment of results is ongoing. 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. January 2023 was the deadline for Member States to implement the Directive in their countries. A majority of Member States have adopted the EU Directive. Some Member States, including Germany, adopted more restrictive limits for certain PFAS substances. Dyneon has a recycling pr |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 15. 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). 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 (loss) as its measure of segment profit/loss, reconciled to both total 3M operating income (loss) and income before taxes. Business segment operating income (loss) 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 2023, the measure of segment operating performance and segment composition 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 (loss) 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. Reflecting gains/losses from sale of property, plant and equipment (PPE) and other assets within Corporate and Unallocated Change 3M updated its business segment operating performance measure to reflect all gains/losses from sales of PPE and other assets within Corporate and Unallocated. Previously, certain of these gains/losses were included in 3M’s business segments’ operating performance. Movement of certain businesses between segments The businesses associated with two groups of products (each with approximately $25 million in annual sales) were realigned with one moving from the Consumer business segment to the Health Care business segment and the other moving from the Health Care business segment to the Consumer business segment. Also effective in the first quarter of 2023, the Consumer business segment re-aligned from four divisions to the following three divisions: Home, Health and Auto Care; Construction and Home Improvement Markets; and Stationery and Office. Business Segment Information (Millions) Three months ended Nine months ended Net Sales 2023 2022 2023 2022 Safety and Industrial $ 2,751 $ 2,894 $ 8,295 $ 8,869 Transportation and Electronics 2,171 2,239 6,412 6,847 Health Care 2,073 2,076 6,158 6,383 Consumer 1,315 1,409 3,800 4,048 Corporate and Unallocated 2 1 3 3 Total Company $ 8,312 $ 8,619 $ 24,668 $ 26,150 Three months ended Nine months ended Operating Performance 2023 2022 2023 2022 Safety and Industrial $ 666 $ 652 $ 1,801 $ 572 Transportation and Electronics 389 475 1,093 1,414 Health Care 460 450 1,231 1,387 Consumer 269 299 683 766 Total business segment operating income (loss) 1,784 1,876 4,808 4,139 Corporate and Unallocated Corporate special items: Net costs for significant litigation (4,270) (246) (14,709) (812) Divestiture costs (132) (6) (359) (6) Gain on business divestitures 36 2,724 36 2,724 Divestiture-related restructuring actions — (41) — (41) Russia exit (charges) benefits — (109) 18 (109) Total corporate special items (4,366) 2,322 (15,014) 1,756 Other corporate expense - net (72) (42) (165) 12 Total Corporate and Unallocated (4,438) 2,280 (15,179) 1,768 Total Company operating income (loss) (2,654) 4,156 (10,371) 5,907 Other expense/(income), net 200 24 317 112 Income (loss) before income taxes $ (2,854) $ 4,132 $ (10,688) $ 5,795 Corporate and Unallocated Corporate and Unallocated operating income (loss) includes “corporate special items” and “other corporate expense-net”. Corporate special items include net costs for significant litigation impacting operating income (loss) associated with PFAS-related other environmental and Combat Arms Earplugs matters. In addition, during the voluntary chapter 11 bankruptcy period (which began in July 2022 and ended in June 2023—see Note 14), costs associated with the Aearo portion of respirator mask/asbestos matters were also included in corporate special items. Prior to the bankruptcy, costs associated with Combat Arms Earplugs matters were not included in the Corporate net costs for significant litigation special item, instead being reflected in the Safety and Industrial business segment. 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/ benefits (see Note 13). 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, gains/losses from sales of PPE and other assets, 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. 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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) attributable to 3M | $ (2,075) | $ 3,859 | $ (7,940) | $ 5,236 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The interim consolidated financial statements are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair statement of the Company’s consolidated financial position, results of operations and cash flows for the periods presented. These adjustments consist of normal, recurring items. The results of operations for any interim period are not necessarily indicative of results for the full year. The interim consolidated financial statements and notes are presented as permitted by the requirements for Quarterly Reports on Form 10-Q. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes included in its Annual Report on Form 10-K. In the second quarter of 2023, 3M re-consolidated the Aearo Technology and certain of its related entities (collectively, the "Aearo Entities") as a result of the court dismissal of their voluntary bankruptcy proceedings. 3M had previously deconsolidated these entities in the third quarter of 2022. See additional information in Note 14. |
Earnings (Loss) Per Share | Earnings (Loss) 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 a result of the dilution associated with the Company’s stock-based compensation plans. Certain options outstanding under these stock-based compensation plans were not included in the computation of diluted earnings (loss) per share attributable to 3M common shareholders because they would have had an anti-dilutive effect of 35.6 million and 36.0 million average options for the three and nine months ended September 30, 2023, respectively, and 31.7 million and 28.9 million average options for the three and nine months ended September 30, 2022, respectively. In periods of net losses, these anti-dilutive effects include all weighted option shares outstanding and weighted average shares is the same for the calculations of both basic and diluted loss per share. The computations for basic and diluted earnings (loss) per share follow: |
Supplier Finance Program Obligations | Supplier Finance Program Obligations Under supplier finance programs, 3M agrees to pay participating banks the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices, generally within 90 days of the invoice date. 3M or the banks may terminate the agreements with advance notice. Separately, the banks may have arrangements with the suppliers that provide them the option to request early payment from the banks for invoices confirmed by 3M. 3M's outstanding balances of confirmed invoices in the programs as of September 30, 2023 and December 31, 2022 were approximately $320 million and $260 million, respectively. These amounts are included within accounts payable on 3M's consolidated balance sheet. |
New Accounting Pronouncements | New Accounting Pronouncements Refer to Note 1 to the Consolidated Financial Statements in 3M’s 2022 Annual Report on Form 10-K for a discussion of applicable standards issued and not yet adopted by 3M. |
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). 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 (loss) as its measure of segment profit/loss, reconciled to both total 3M operating income (loss) and income before taxes. Business segment operating income (loss) 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 2023, the measure of segment operating performance and segment composition 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 (loss) 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. Reflecting gains/losses from sale of property, plant and equipment (PPE) and other assets within Corporate and Unallocated Change 3M updated its business segment operating performance measure to reflect all gains/losses from sales of PPE and other assets within Corporate and Unallocated. Previously, certain of these gains/losses were included in 3M’s business segments’ operating performance. Movement of certain businesses between segments The businesses associated with two groups of products (each with approximately $25 million in annual sales) were realigned with one moving from the Consumer business segment to the Health Care business segment and the other moving from the Health Care business segment to the Consumer business segment. Also effective in the first quarter of 2023, the Consumer business segment re-aligned from four divisions to the following three divisions: Home, Health and Auto Care; Construction and Home Improvement Markets; and Stationery and Office. Corporate and Unallocated Corporate and Unallocated operating income (loss) includes “corporate special items” and “other corporate expense-net”. Corporate special items include net costs for significant litigation impacting operating income (loss) associated with PFAS-related other environmental and Combat Arms Earplugs matters. In addition, during the voluntary chapter 11 bankruptcy period (which began in July 2022 and ended in June 2023—see Note 14), costs associated with the Aearo portion of respirator mask/asbestos matters were also included in corporate special items. Prior to the bankruptcy, costs associated with Combat Arms Earplugs matters were not included in the Corporate net costs for significant litigation special item, instead being reflected in the Safety and Industrial business segment. 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/ benefits (see Note 13). 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, gains/losses from sales of PPE and other assets, 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. 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) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Earnings (Loss) Per Share Computations | Earnings (Loss) Per Share Computations Three months ended Nine months ended (Amounts in millions, except per share amounts) 2023 2022 2023 2022 Numerator: Net income (loss) attributable to 3M $ (2,075) $ 3,859 $ (7,940) $ 5,236 Denominator: Denominator for weighted average 3M common shares outstanding – basic 554.3 568.8 553.7 570.7 Dilution associated with the Company’s stock-based compensation plans — 1.2 — 1.9 Denominator for weighted average 3M common shares outstanding – diluted 554.3 570.0 553.7 572.6 Earnings (loss) per share attributable to 3M common shareholders — basic $ (3.74) $ 6.79 $ (14.34) $ 9.18 Earnings (loss) per share attributable to 3M common shareholders — diluted $ (3.74) $ 6.77 $ (14.34) $ 9.15 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenue | The Company views the following disaggregated disclosures as useful to understanding the composition of revenue recognized during the respective reporting periods: Three months ended Nine months ended Net Sales (Millions) 2023 2022 2023 2022 Abrasives $ 330 $ 339 $ 1,005 $ 1,014 Automotive Aftermarket 316 316 933 900 Closure and Masking Systems 240 266 726 794 Electrical Markets 327 331 980 976 Industrial Adhesives and Tapes 544 598 1,633 1,805 Personal Safety 862 922 2,643 3,021 Roofing Granules 132 122 375 359 Total Safety and Industrial Business Segment 2,751 2,894 8,295 8,869 Advanced Materials 274 297 880 909 Automotive and Aerospace 507 437 1,446 1,325 Commercial Solutions 430 459 1,317 1,361 Electronics 738 813 2,124 2,599 Transportation Safety 222 233 645 653 Total Transportation and Electronics Business Segment 2,171 2,239 6,412 6,847 Food Safety — 63 — 244 Health Information Systems 305 312 907 921 Medical Solutions 1,179 1,150 3,463 3,447 Oral Care 331 308 1,023 1,006 Separation and Purification Sciences 242 235 721 757 Other Health Care 16 8 44 8 Total Health Care Business Group 2,073 2,076 6,158 6,383 Construction and Home Improvement Markets 603 656 1,674 1,819 Home, Health and Auto Care 391 418 1,219 1,283 Stationery and Office 321 335 907 946 Total Consumer Business Group 1,315 1,409 3,800 4,048 Corporate and Unallocated 2 1 3 3 Total Company $ 8,312 $ 8,619 $ 24,668 $ 26,150 Three months ended Nine months ended Net Sales (Millions) 2023 2022 2023 2022 Americas $ 4,769 $ 4,741 $ 13,846 $ 13,930 Asia Pacific 2,097 2,485 6,411 7,702 Europe, Middle East and Africa 1,446 1,393 4,411 4,518 Worldwide $ 8,312 $ 8,619 $ 24,668 $ 26,150 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The goodwill balance by business segment follows: (Millions) Safety and Industrial Transportation and Electronics Health Care Consumer Total Company Balance as of December 31, 2022 $ 4,509 $ 1,501 $ 6,515 $ 265 $ 12,790 Divestiture activity — — (4) — (4) Translation and other (17) (3) (43) (2) (65) Balance as of September 30, 2023 $ 4,492 $ 1,498 $ 6,468 $ 263 $ 12,721 |
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: (Millions) September 30, December 31, Customer related intangible assets $ 4,046 $ 4,062 Patents 428 426 Other technology-based intangible assets 2,083 2,081 Definite-lived tradenames 1,165 1,166 Other amortizable intangible assets 81 84 Total gross carrying amount 7,803 7,819 Accumulated amortization — customer related (1,901) (1,747) Accumulated amortization — patents (426) (421) Accumulated amortization — other technology-based (1,140) (1,000) Accumulated amortization — definite-lived tradenames (558) (509) Accumulated amortization — other (59) (60) Total accumulated amortization (4,084) (3,737) Total finite-lived intangible assets — net 3,719 4,082 Non-amortizable intangible assets (primarily tradenames) 605 617 Total intangible assets — net $ 4,324 $ 4,699 |
Schedule of Amortization Expense for Acquired Intangible Assets | Amortization expense follows: Three months ended Nine months ended (Millions) 2023 2022 2023 2022 Amortization expense $ 122 $ 124 $ 365 $ 384 |
Schedule of Expected Amortization Expense for Acquired Amortizable Intangible Assets | Expected amortization expense for acquired amortizable intangible assets recorded as of September 30, 2023 follows: (Millions) Remainder of 2023 2024 2025 2026 2027 2028 After 2028 Amortization expense $ 115 $ 452 $ 422 $ 416 $ 392 $ 366 $ 1,556 |
Restructuring Actions (Tables)
Restructuring Actions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The related restructuring charges for periods presented were recorded in the income (loss) statement as follows: (Millions) Three months ended September 30, 2023 Nine months ended September 30, 2023 Cost of sales $ 4 $ 67 Selling, general and administrative expenses 55 233 Research, development and related expenses 3 26 Total operating income impact $ 62 $ 326 The business segment operating income (loss) impact of these restructuring charges is summarized as follows: Three months ended September 30, 2023 Nine months ended September 30, 2023 (Millions) Employee Related Asset-Related and Other Total Employee Related Asset-Related and Other Total Safety and Industrial $ 10 $ — $ 10 $ 64 $ — $ 64 Transportation and Electronics 9 — 9 46 — 46 Health Care 4 — 4 16 — 16 Consumer 3 — 3 19 — 19 Corporate and unallocated 4 32 36 129 52 181 Total operating expense $ 30 $ 32 $ 62 $ 274 $ 52 $ 326 |
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 first quarter of 2023 $ 52 $ — $ 52 Incremental expense incurred in the second quarter of 2023 192 20 212 Incremental expense incurred in the third quarter of 2023 30 32 62 Non-cash changes — (52) (52) Cash payments (156) — (156) Accrued restructuring action balance as of September 30, 2023 $ 118 $ — $ 118 |
Supplemental Income (Loss) St_2
Supplemental Income (Loss) Statement Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense (Income), Net | Other expense (income), net consists of the following: Three months ended Nine months ended (Millions) 2023 2022 2023 2022 Interest expense $ 304 $ 106 $ 571 $ 347 Interest income (73) (17) (161) (36) Pension and postretirement net periodic benefit cost (benefit) (31) (65) (93) (199) Total $ 200 $ 24 $ 317 $ 112 |
Supplemental Equity and Compr_2
Supplemental Equity and Comprehensive Income (Loss) Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Consolidated Statement of Changes in Equity | Consolidated Changes in Equity Three months ended September 30, 2023 3M Company Shareholders (Millions) Total Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Non-controlling Interest Balance at June 30, 2023 $ 7,857 $ 6,867 $ 40,290 $ (32,926) $ (6,433) $ 59 Net income (loss) (2,071) (2,075) 4 Other comprehensive income (loss), net of tax: Cumulative translation adjustment (365) (364) (1) Defined benefit pension and post-retirement plans adjustment 50 50 Cash flow hedging instruments 21 21 Total other comprehensive income (loss), net of tax (294) Dividends declared (828) (828) Stock-based compensation 45 45 Reacquired stock (2) (2) Dividend to noncontrolling interest (3) (3) Issuances pursuant to stock option and benefit plans 27 (12) 39 Balance at September 30, 2023 $ 4,731 $ 6,912 $ 37,375 $ (32,889) $ (6,726) $ 59 Three months ended September 30, 2022 3M Company Shareholders (Millions) Total Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Non-controlling Interest Balance at June 30, 2022 $ 13,816 $ 6,616 $ 45,269 $ (30,781) $ (7,362) $ 74 Net income 3,863 3,859 4 Other comprehensive income (loss), net of tax: Cumulative translation adjustment (821) (819) (2) Defined benefit pension and post-retirement plans adjustment 86 86 Cash flow hedging instruments 110 110 Total other comprehensive income (loss), net of tax (625) Dividends declared (850) (850) Stock-based compensation 47 47 Reacquired stock (191) (191) Split-off of Food Safety business (1,988) (1,988) Issuances pursuant to stock option and benefit plans 84 (33) 117 Balance at September 30, 2022 $ 14,156 $ 6,663 $ 48,245 $ (32,843) $ (7,985) $ 76 Nine months ended September 30, 2023 3M Company Shareholders (Millions) Total Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Non-controlling Interest Balance at December 31, 2022 $ 14,770 $ 6,700 $ 47,950 $ (33,255) $ (6,673) $ 48 Net income (loss) (7,926) (7,940) 14 Other comprehensive income (loss), net of tax: Cumulative translation adjustment (224) (224) — Defined benefit pension and post-retirement plans adjustment 151 151 Cash flow hedging instruments 20 20 Total other comprehensive income (loss), net of tax (53) Dividends declared (2,483) (2,483) Stock-based compensation 212 212 Reacquired stock (31) (31) Dividend to noncontrolling interest (3) (3) Issuances pursuant to stock option and benefit plans 245 (152) 397 Balance at September 30, 2023 $ 4,731 $ 6,912 $ 37,375 $ (32,889) $ (6,726) $ 59 Nine months ended September 30, 2022 3M Company Shareholders (Millions) Total Common Stock and Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Non-controlling Interest Balance at December 31, 2021 $ 15,117 $ 6,438 $ 45,821 $ (30,463) $ (6,750) $ 71 Net income 5,248 5,236 12 Other comprehensive income (loss), net of tax: Cumulative translation adjustment (1,697) (1,690) (7) Defined benefit pension and post-retirement plans adjustment 258 258 Cash flow hedging instruments 197 197 Total other comprehensive income (loss), net of tax (1,242) Dividends declared (2,550) (2,550) Stock-based compensation 225 225 Reacquired stock (964) (964) Split-off of Food Safety business (1,988) (1,988) Issuances pursuant to stock option and benefit plans 310 (262) 572 Balance at September 30, 2022 $ 14,156 $ 6,663 $ 48,245 $ (32,843) $ (7,985) $ 76 |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M | Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component Three months ended September 30, 2023 (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 June 30, 2023, net of tax: $ (2,688) $ (3,737) $ (8) $ (6,433) Other comprehensive income (loss), before tax: Amounts before reclassifications (340) — 66 (274) Amounts reclassified out — 65 (38) 27 Total other comprehensive income (loss), before tax (340) 65 28 (247) Tax effect (24) (15) (7) (46) Total other comprehensive income (loss), net of tax (364) 50 21 (293) Balance at September 30, 2023, net of tax: $ (3,052) $ (3,687) $ 13 $ (6,726) Three months ended September 30, 2022 (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 June 30, 2022, net of tax: $ (2,814) $ (4,581) $ 33 $ (7,362) Other comprehensive income (loss), before tax: Amounts before reclassifications (773) — 173 (600) Amounts reclassified out — 112 (30) 82 Total other comprehensive income (loss), before tax (773) 112 143 (518) Tax effect (46) (26) (33) (105) Total other comprehensive income (loss), net of tax (819) 86 110 (623) Balance at September 30, 2022, net of tax: $ (3,633) $ (4,495) $ 143 $ (7,985) Nine months ended September 30, 2023 (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, 2022, net of tax: $ (2,828) $ (3,838) $ (7) $ (6,673) Other comprehensive income (loss), before tax: Amounts before reclassifications (232) — 144 (88) Amounts reclassified out 39 194 (119) 114 Total other comprehensive income (loss), before tax (193) 194 25 26 Tax effect (31) (43) (5) (79) Total other comprehensive income (loss), net of tax (224) 151 20 (53) Balance at September 30, 2023, net of tax: $ (3,052) $ (3,687) $ 13 $ (6,726) Nine months ended September 30, 2022 (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, 2021, net of tax: $ (1,943) $ (4,753) $ (54) $ (6,750) Other comprehensive income (loss), before tax: Amounts before reclassifications (1,587) — 307 (1,280) Amounts reclassified out — 339 (52) 287 Total other comprehensive income (loss), before tax (1,587) 339 255 (993) Tax effect (103) (81) (58) (242) Total other comprehensive income (loss), net of tax (1,690) 258 197 (1,235) Balance at September 30, 2022, net of tax: $ (3,633) $ (4,495) $ 143 $ (7,985) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Attributable to 3M Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Location on Income (Loss) Statement Three months ended Nine months ended (Millions) 2023 2022 2023 2022 Cumulative translation adjustment Reclassification adjustment associated with Russia (see Note 13) $ — $ — $ (39) $ — Selling, general and administrative expenses Total before tax — — (39) — Tax effect — — — — Net of tax — — (39) — Defined benefit pension and postretirement plans adjustments Gains (losses) associated with defined benefit pension and postretirement plans amortization Transition asset (1) — (2) (1) Other (expense) income, net Prior service benefit 13 14 40 42 Other (expense) income, net Net actuarial loss (77) (126) (232) (378) Other (expense) income, net Curtailments/Settlements — — — (2) Other (expense) income, net Total before tax (65) (112) (194) (339) Tax effect 15 26 43 81 Provision for income taxes Net of tax (50) (86) (151) (258) Cash flow hedging instruments gains (losses) Foreign currency forward/option contracts 40 33 125 59 Cost of sales Interest rate contracts (2) (3) (6) (7) Interest expense Total before tax 38 30 119 52 Tax effect (9) (7) (27) (12) Provision for income taxes Net of tax 29 23 92 40 Total reclassifications for the period, net of tax $ (21) $ (63) (98) $ (218) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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) September 30, 2023 December 31, 2022 Commercial paper $ — $ 213 Certificates of deposit/time deposits 69 21 U.S. municipal securities 4 4 Current marketable securities 73 238 U.S. municipal securities 23 23 Non-current marketable securities 23 23 Total marketable securities $ 96 $ 261 |
Schedule of Marketable Securities by Contractual Maturity | The balances at September 30, 2023 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) September 30, 2023 Due in one year or less $ 73 Due after one year through five years 15 Due after five years through ten years 8 Total marketable securities $ 96 |
Long-Term Debt and Short-Term_2
Long-Term Debt and Short-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-Term Debt | The maturities of long-term debt for the periods subsequent to September 30, 2023 are as follows (in millions): Remainder of 2023 2024 2025 2026 2027 2028 After 2028 Total $ 149 $ 1,100 $ 1,866 $ 1,433 $ 846 $ 701 $ 8,030 $ 14,125 |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost (Benefit) | 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 three and nine months ended September 30, 2023 and 2022 follow: Benefit Plan Information Three months ended September 30, Qualified and Non-qualified Pension Benefits Postretirement Benefits United States International (Millions) 2023 2022 2023 2022 2023 2022 Net periodic benefit cost (benefit) Operating expense Service cost $ 42 $ 64 $ 21 $ 32 $ 6 $ 10 Non-operating expense Interest cost 166 105 56 32 21 13 Expected return on plan assets (243) (241) (76) (69) (20) (17) Amortization of transition asset — — 1 — — — Amortization of prior service benefit (6) (6) — — (7) (8) Amortization of net actuarial loss 73 106 2 10 2 10 Total non-operating expense (benefit) (10) (36) (17) (27) (4) (2) Total net periodic benefit cost (benefit) $ 32 $ 28 $ 4 $ 5 $ 2 $ 8 Nine months ended September 30, Qualified and Non-qualified Pension Benefits Postretirement Benefits United States International (Millions) 2023 2022 2023 2022 2023 2022 Net periodic benefit cost (benefit) Operating expense Service cost $ 128 $ 192 $ 60 $ 100 $ 18 $ 31 Non-operating expense Interest cost 497 313 165 96 66 39 Expected return on plan assets (731) (723) (226) (211) (58) (52) Amortization of transition asset — — 2 1 — — Amortization of prior service benefit (18) (18) 1 — (23) (24) Amortization of net actuarial loss 220 318 6 30 6 30 Settlements, curtailments, special termination benefits and other — — — — — 2 Total non-operating expense (benefit) (32) (110) (52) (84) (9) (5) Total net periodic benefit cost (benefit) $ 96 $ 82 $ 8 $ 16 $ 9 $ 26 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Gains (Loss) on Derivative Instruments Designated as Hedges | The amount of pretax gain (loss) recognized in other comprehensive income (loss) related to derivative instruments designated as cash flow hedges is provided in the following table. Pretax Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivative Three months ended Nine months ended (Millions) 2023 2022 2023 2022 Foreign currency forward/option contracts $ 66 $ 173 $ 144 $ 307 Interest rate contracts — — — — Total $ 66 $ 173 $ 144 $ 307 |
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: 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 (Millions) September 30, December 31, September 30, December 31, Long-term debt $ 886 $ 903 $ (117) $ (98) |
Schedule of Gain (Loss) on Derivative and Non-Derivative Instruments Designated as Net Investment Hedges | The amount of pretax gain (loss) recognized in other comprehensive income (loss) 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 (Loss) Three months ended Nine months ended (Millions) 2023 2022 2023 2022 Foreign currency denominated debt $ 60 $ 188 $ (5) $ 380 Foreign currency forward contracts 5 11 2 22 Total $ 65 $ 199 $ (3) $ 402 |
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 (loss) 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 (Loss) Three months ended September 30, Nine months ended September 30, Cost of sales Other expense (income), net Cost of sales Other expense (income), net (Millions) 2023 2022 2023 2022 2023 2022 2023 2022 Information regarding cash flow and fair value hedging relationships: Total amounts of income and expense line items presented in the consolidated statement of income (loss) in which the effects of derivatives are recorded $ 4,580 $ 4,728 $ 200 $ 24 $ 13,799 $ 14,647 $ 317 $ 112 Gain or (loss) on cash flow hedging relationships: Foreign currency forward/option contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income 40 33 — — 125 59 — — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — — (2) (3) — — (6) (7) Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items — — 21 36 — — 18 107 Derivatives designated as hedging instruments — — (21) (36) — — (18) (107) Information regarding derivatives not designated as hedging instruments: Gain or (loss) on derivatives not designated as instruments: Foreign currency forward/option contracts (1) (44) (2) (21) (6) (110) 11 3 |
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 September 30, December 31, September 30, December 31, September 30, December 31, Derivatives designated as hedging instruments Foreign currency forward/option contracts $ 1,866 $ 2,368 Other current assets $ 112 $ 89 Other current liabilities $ 7 $ 27 Foreign currency forward/option contracts 529 835 Other assets 42 55 Other liabilities 2 9 Interest rate contracts 800 800 Other assets — — Other liabilities 120 102 Total derivatives designated as hedging instruments 154 144 129 138 Derivatives not designated as hedging instruments Foreign currency forward/option contracts 776 2,816 Other current assets 6 73 Other current liabilities 10 4 Total derivatives not designated as hedging instruments 6 73 10 4 Total derivative instruments $ 160 $ 217 $ 139 $ 142 |
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) September 30, December 31, September 30, December 31, September 30, December 31, September 30, December 31, Derivatives subject to master netting agreements $ 160 $ 217 $ 19 $ 40 $ — $ — $ 141 $ 177 Derivatives not subject to master netting agreements — — — — Total $ 160 $ 217 $ 141 $ 177 |
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) September 30, December 31, September 30, December 31, September 30, December 31, September 30, December 31, Derivatives subject to master netting agreements $ 139 $ 142 $ 19 $ 40 $ — $ — $ 120 $ 102 Derivatives not subject to master netting agreements — — — — Total $ 139 $ 142 $ 120 $ 102 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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) September 30, December 31, September 30, December 31, September 30, December 31, September 30, December 31, Assets: Available-for-sale: Marketable securities: Commercial paper $ — $ 213 $ — $ — $ — $ 213 $ — $ — Certificates of deposit/time deposits 69 21 — — 69 21 — — U.S. municipal securities 27 27 — — — — 27 27 Derivative instruments — assets: Foreign currency forward/option contracts 160 217 — — 160 217 — — Liabilities: Derivative instruments — liabilities: Foreign currency forward/option contracts 19 40 — — 19 40 — — Interest rate contracts 120 102 — — 120 102 — — |
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 Three months ended Nine months ended (Millions) 2023 2022 2023 2022 Beginning balance $ 27 $ 30 $ 27 $ 30 Total gains or losses: Included in earnings (losses) — — — — Included in other comprehensive income (loss) — — — — Purchases and issuances — — — — Sales and settlements — — — — Transfers in and/or out of level 3 — — — — Ending balance $ 27 $ 30 $ 27 $ 30 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, by Balance Sheet Grouping | Information with respect to the carrying amounts and estimated fair values of these financial instruments follow: September 30, 2023 December 31, 2022 (Millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, excluding current portion $ 12,876 $ 10,970 $ 14,001 $ 12,484 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Information | Business Segment Information (Millions) Three months ended Nine months ended Net Sales 2023 2022 2023 2022 Safety and Industrial $ 2,751 $ 2,894 $ 8,295 $ 8,869 Transportation and Electronics 2,171 2,239 6,412 6,847 Health Care 2,073 2,076 6,158 6,383 Consumer 1,315 1,409 3,800 4,048 Corporate and Unallocated 2 1 3 3 Total Company $ 8,312 $ 8,619 $ 24,668 $ 26,150 Three months ended Nine months ended Operating Performance 2023 2022 2023 2022 Safety and Industrial $ 666 $ 652 $ 1,801 $ 572 Transportation and Electronics 389 475 1,093 1,414 Health Care 460 450 1,231 1,387 Consumer 269 299 683 766 Total business segment operating income (loss) 1,784 1,876 4,808 4,139 Corporate and Unallocated Corporate special items: Net costs for significant litigation (4,270) (246) (14,709) (812) Divestiture costs (132) (6) (359) (6) Gain on business divestitures 36 2,724 36 2,724 Divestiture-related restructuring actions — (41) — (41) Russia exit (charges) benefits — (109) 18 (109) Total corporate special items (4,366) 2,322 (15,014) 1,756 Other corporate expense - net (72) (42) (165) 12 Total Corporate and Unallocated (4,438) 2,280 (15,179) 1,768 Total Company operating income (loss) (2,654) 4,156 (10,371) 5,907 Other expense/(income), net 200 24 317 112 Income (loss) before income taxes $ (2,854) $ 4,132 $ (10,688) $ 5,795 |
Significant Accounting Polici_4
Significant Accounting Policies - Earnings Per Share Computations (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 USD ($) $ / shares shares | Mar. 31, 2023 division | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2023 USD ($) segment $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2022 division | |
Accounting Policies [Abstract] | ||||||
Number of business segments | 3 | 4 | 4 | |||
Earnings per share | ||||||
Options outstanding not included in computation of diluted earnings per share (in shares) | 35.6 | 31.7 | 36 | 28.9 | ||
Numerator: | ||||||
Net income (loss) attributable to 3M | $ | $ (2,075) | $ 3,859 | $ (7,940) | $ 5,236 | ||
Denominator: | ||||||
Denominator for weighted average 3M common shares outstanding - basic (in shares) | 554.3 | 568.8 | 553.7 | 570.7 | ||
Dilution associated with the Company's stock-based compensation plans (in shares) | 0 | 1.2 | 0 | 1.9 | ||
Denominator for weighted average 3M common shares outstanding - diluted (in shares) | 554.3 | 570 | 553.7 | 572.6 | ||
Earnings (loss) per share attributable to 3M common shareholders — basic (in dollars per share) | $ / shares | $ (3.74) | $ 6.79 | $ (14.34) | $ 9.18 | ||
Earnings (loss) per share attributable to 3M common shareholders — diluted (in dollars per share) | $ / shares | $ (3.74) | $ 6.77 | $ (14.34) | $ 9.15 |
Significant Accounting Polici_5
Significant Accounting Policies - Supplier Finance Program Obligations (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Supplier obligation | $ 320 | $ 260 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Software license contracts term (in years) | 1 year | ||||
Deferred revenue (current portion) | $ 501 | $ 501 | $ 538 | ||
Deferred income recognized as revenue | 110 | $ 100 | 460 | $ 440 | |
Operating lease revenue | 154 | 145 | 439 | 429 | |
United States | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 3,900 | $ 3,900 | $ 11,300 | $ 11,400 |
Revenue - Disaggregated Revenue
Revenue - Disaggregated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 8,312 | $ 8,619 | $ 24,668 | $ 26,150 |
Corporate and Unallocated | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2 | 1 | 3 | 3 |
Net sales | 2 | 1 | 3 | 3 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,769 | 4,741 | 13,846 | 13,930 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,097 | 2,485 | 6,411 | 7,702 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,446 | 1,393 | 4,411 | 4,518 |
Safety and Industrial | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,751 | 2,894 | 8,295 | 8,869 |
Net sales | 2,751 | 2,894 | 8,295 | 8,869 |
Safety and Industrial | Abrasives | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 330 | 339 | 1,005 | 1,014 |
Safety and Industrial | Automotive Aftermarket | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 316 | 316 | 933 | 900 |
Safety and Industrial | Closure and Masking Systems | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 240 | 266 | 726 | 794 |
Safety and Industrial | Electrical Markets | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 327 | 331 | 980 | 976 |
Safety and Industrial | Industrial Adhesives and Tapes | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 544 | 598 | 1,633 | 1,805 |
Safety and Industrial | Personal Safety | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 862 | 922 | 2,643 | 3,021 |
Safety and Industrial | Roofing Granules | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 132 | 122 | 375 | 359 |
Transportation and Electronics | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,171 | 2,239 | 6,412 | 6,847 |
Net sales | 2,171 | 2,239 | 6,412 | 6,847 |
Transportation and Electronics | Advanced Materials | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 274 | 297 | 880 | 909 |
Transportation and Electronics | Automotive and Aerospace | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 507 | 437 | 1,446 | 1,325 |
Transportation and Electronics | Commercial Solutions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 430 | 459 | 1,317 | 1,361 |
Transportation and Electronics | Electronics | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 738 | 813 | 2,124 | 2,599 |
Transportation and Electronics | Transportation Safety | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 222 | 233 | 645 | 653 |
Health Care | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,073 | 2,076 | 6,158 | 6,383 |
Health Care | Food Safety | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 63 | 0 | 244 |
Health Care | Health Information Systems | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 305 | 312 | 907 | 921 |
Health Care | Medical Solutions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,179 | 1,150 | 3,463 | 3,447 |
Health Care | Oral Care | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 331 | 308 | 1,023 | 1,006 |
Health Care | Separation and Purification Sciences | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 242 | 235 | 721 | 757 |
Health Care | Other Health Care | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 16 | 8 | 44 | 8 |
Consumer | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,315 | 1,409 | 3,800 | 4,048 |
Net sales | 1,315 | 1,409 | 3,800 | 4,048 |
Consumer | Construction and Home Improvement Markets | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 603 | 656 | 1,674 | 1,819 |
Consumer | Home, Health and Auto Care | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 391 | 418 | 1,219 | 1,283 |
Consumer | Stationery and Office | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 321 | $ 335 | $ 907 | $ 946 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Acquisitions (Details) | 9 Months Ended |
Sep. 30, 2023 business | |
Business Combination and Asset Acquisition [Abstract] | |
Number of acquisitions | 0 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Divestitures (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Aug. 31, 2023 | Jul. 31, 2022 | Sep. 30, 2023 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Dental Local Anesthetic Business | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 60 | ||
Annual sales | $ 30 | ||
Pre-tax gain on divestitures | $ 36 | ||
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% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Balance by Business Segment (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill acquired during period | $ 0 |
Goodwill | |
Balance at the beginning of the period | 12,790,000,000 |
Divestiture activity | (4,000,000) |
Translation and other | (65,000,000) |
Balance at the end of the period | 12,721,000,000 |
Goodwill, accumulated impairment loss | 300,000,000 |
Safety and Industrial | |
Goodwill | |
Balance at the beginning of the period | 4,509,000,000 |
Divestiture activity | 0 |
Translation and other | (17,000,000) |
Balance at the end of the period | 4,492,000,000 |
Transportation and Electronics | |
Goodwill | |
Balance at the beginning of the period | 1,501,000,000 |
Divestiture activity | 0 |
Translation and other | (3,000,000) |
Balance at the end of the period | 1,498,000,000 |
Health Care | |
Goodwill | |
Balance at the beginning of the period | 6,515,000,000 |
Divestiture activity | (4,000,000) |
Translation and other | (43,000,000) |
Balance at the end of the period | 6,468,000,000 |
Consumer | |
Goodwill | |
Balance at the beginning of the period | 265,000,000 |
Divestiture activity | 0 |
Translation and other | (2,000,000) |
Balance at the end of the period | $ 263,000,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Acquired Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Acquired intangible assets disclosures | ||
Total gross carrying amount | $ 7,803 | $ 7,819 |
Total accumulated amortization | (4,084) | (3,737) |
Total finite-lived intangible assets — net | 3,719 | 4,082 |
Non-amortizable intangible assets (primarily tradenames) | 605 | 617 |
Total intangible assets — net | 4,324 | 4,699 |
Customer related intangible assets | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | 4,046 | 4,062 |
Total accumulated amortization | (1,901) | (1,747) |
Patents | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | 428 | 426 |
Total accumulated amortization | (426) | (421) |
Other technology-based intangible assets | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | 2,083 | 2,081 |
Total accumulated amortization | (1,140) | (1,000) |
Definite-lived tradenames | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | 1,165 | 1,166 |
Total accumulated amortization | (558) | (509) |
Other amortizable intangible assets | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | 81 | 84 |
Total accumulated amortization | $ (59) | $ (60) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedules for Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 122 | $ 124 | $ 365 | $ 384 |
Expected amortization expense for acquired intangible assets recorded as of balance sheet date | ||||
Remainder of 2023 | 115 | 115 | ||
2024 | 452 | 452 | ||
2025 | 422 | 422 | ||
2026 | 416 | 416 | ||
2027 | 392 | 392 | ||
2028 | 366 | 366 | ||
After 2028 | $ 1,556 | $ 1,556 |
Restructuring Actions - Narrati
Restructuring Actions - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 27 Months Ended | |||||
Sep. 30, 2023 USD ($) position | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) position | Mar. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) position party | Mar. 31, 2022 USD ($) position | Dec. 31, 2022 USD ($) | |
2023 Restructuring Actions | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring and related cost, expected number of positions affected | party | 5,200 | |||||||
Incremental expense incurred | $ 62 | $ 212 | $ 52 | $ 326 | ||||
Accrued restructuring action balances | 118 | 118 | ||||||
2023 Restructuring Actions | Employee Related | ||||||||
Restructuring Cost and Reserve | ||||||||
Incremental expense incurred | 30 | $ 192 | $ 52 | |||||
Accrued restructuring action balances | 118 | $ 118 | ||||||
2023 to 2024 Restructuring Actions | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring and related cost, expected number of positions affected | position | 8,500 | |||||||
2023 to 2024 Restructuring Actions | Employee Related | Minimum | ||||||||
Restructuring Cost and Reserve | ||||||||
Expected charges | 700 | $ 700 | ||||||
2023 to 2024 Restructuring Actions | Employee Related | Maximum | ||||||||
Restructuring Cost and Reserve | ||||||||
Expected charges | $ 900 | $ 900 | ||||||
2023 to 2025 PFAS Exit Actions | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring and related cost, expected number of positions affected | position | 100 | |||||||
Incremental expense incurred | $ 40 | |||||||
Operational/Marketing Capability Restructuring | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring and related cost, expected number of positions affected | position | 3,100 | |||||||
Incremental expense incurred | $ 18 | |||||||
Expected charges | $ 280 | $ 280 | ||||||
Divestiture-Related Restructuring | ||||||||
Restructuring Cost and Reserve | ||||||||
Restructuring and related cost, expected number of positions affected | position | 850 | |||||||
Expected charges | $ 41 | |||||||
Divestiture-Related Restructuring | Employee Related | ||||||||
Restructuring Cost and Reserve | ||||||||
Accrued restructuring action balances | $ 10 |
Restructuring Actions - Schedul
Restructuring Actions - Schedule of Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve | ||||||
Restructuring charges | $ 62 | |||||
Employee Related | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 30 | |||||
Asset-Related and Other | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 32 | |||||
Operating Segments | Safety and Industrial | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 10 | |||||
Operating Segments | Safety and Industrial | Employee Related | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 10 | |||||
Operating Segments | Safety and Industrial | Asset-Related and Other | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 0 | |||||
Operating Segments | Transportation and Electronics | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 9 | |||||
Operating Segments | Transportation and Electronics | Employee Related | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 9 | |||||
Operating Segments | Transportation and Electronics | Asset-Related and Other | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 0 | |||||
Operating Segments | Health Care | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 4 | |||||
Operating Segments | Health Care | Employee Related | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 4 | |||||
Operating Segments | Health Care | Asset-Related and Other | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 0 | |||||
Operating Segments | Consumer | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 3 | |||||
Operating Segments | Consumer | Employee Related | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 3 | |||||
Operating Segments | Consumer | Asset-Related and Other | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 0 | |||||
Corporate and Unallocated | ||||||
Restructuring Cost and Reserve | ||||||
Incremental expense incurred | 0 | $ 41 | $ 0 | $ 41 | ||
Restructuring charges | 36 | |||||
Corporate and Unallocated | Employee Related | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 4 | |||||
Corporate and Unallocated | Asset-Related and Other | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 32 | |||||
2023 Restructuring Actions | ||||||
Restructuring Cost and Reserve | ||||||
Incremental expense incurred | 62 | $ 212 | $ 52 | 326 | ||
Restructuring charges | 326 | |||||
2023 Restructuring Actions | Employee Related | ||||||
Restructuring Cost and Reserve | ||||||
Incremental expense incurred | 30 | 192 | 52 | |||
Restructuring charges | 274 | |||||
2023 Restructuring Actions | Asset-Related and Other | ||||||
Restructuring Cost and Reserve | ||||||
Incremental expense incurred | 32 | $ 20 | $ 0 | |||
Restructuring charges | 52 | |||||
2023 Restructuring Actions | Operating Segments | Safety and Industrial | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 64 | |||||
2023 Restructuring Actions | Operating Segments | Safety and Industrial | Employee Related | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 64 | |||||
2023 Restructuring Actions | Operating Segments | Safety and Industrial | Asset-Related and Other | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 0 | |||||
2023 Restructuring Actions | Operating Segments | Transportation and Electronics | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 46 | |||||
2023 Restructuring Actions | Operating Segments | Transportation and Electronics | Employee Related | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 46 | |||||
2023 Restructuring Actions | Operating Segments | Transportation and Electronics | Asset-Related and Other | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 0 | |||||
2023 Restructuring Actions | Operating Segments | Health Care | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 16 | |||||
2023 Restructuring Actions | Operating Segments | Health Care | Employee Related | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 16 | |||||
2023 Restructuring Actions | Operating Segments | Health Care | Asset-Related and Other | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 0 | |||||
2023 Restructuring Actions | Operating Segments | Consumer | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 19 | |||||
2023 Restructuring Actions | Operating Segments | Consumer | Employee Related | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 19 | |||||
2023 Restructuring Actions | Operating Segments | Consumer | Asset-Related and Other | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 0 | |||||
2023 Restructuring Actions | Corporate and Unallocated | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 181 | |||||
2023 Restructuring Actions | Corporate and Unallocated | Employee Related | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 129 | |||||
2023 Restructuring Actions | Corporate and Unallocated | Asset-Related and Other | ||||||
Restructuring Cost and Reserve | ||||||
Restructuring charges | 52 | |||||
Cost of sales | 2023 Restructuring Actions | ||||||
Restructuring Cost and Reserve | ||||||
Incremental expense incurred | 4 | 67 | ||||
Selling, general and administrative expenses | 2023 Restructuring Actions | ||||||
Restructuring Cost and Reserve | ||||||
Incremental expense incurred | 55 | 233 | ||||
Research, development and related expenses | 2023 Restructuring Actions | ||||||
Restructuring Cost and Reserve | ||||||
Incremental expense incurred | $ 3 | $ 26 |
Restructuring Actions - Cash an
Restructuring Actions - Cash and Non-cash Impacts (Details) - 2023 Restructuring Actions - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | |
Restructuring Reserve Roll Forward | ||||
Expenses incurred | $ 62 | $ 212 | $ 52 | $ 326 |
Non-cash changes | (52) | |||
Cash payments | (156) | |||
Accrued restructuring action balance as of September 30, 2023 | 118 | 118 | ||
Employee Related | ||||
Restructuring Reserve Roll Forward | ||||
Expenses incurred | 30 | 192 | 52 | |
Non-cash changes | 0 | |||
Cash payments | (156) | |||
Accrued restructuring action balance as of September 30, 2023 | 118 | 118 | ||
Asset-Related and Other | ||||
Restructuring Reserve Roll Forward | ||||
Expenses incurred | 32 | $ 20 | $ 0 | |
Non-cash changes | (52) | |||
Cash payments | 0 | |||
Accrued restructuring action balance as of September 30, 2023 | $ 0 | $ 0 |
Supplemental Income (Loss) St_3
Supplemental Income (Loss) Statement Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Interest expense | $ 304 | $ 106 | $ 571 | $ 347 |
Interest income | (73) | (17) | (161) | (36) |
Pension and postretirement net periodic benefit cost (benefit) | (31) | (65) | (93) | (199) |
Total | $ 200 | $ 24 | $ 317 | $ 112 |
Supplemental Equity and Compr_3
Supplemental Equity and Comprehensive Income (Loss) Information - Narrative (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | ||||||||
Dividends declared in period (in dollars per share) | $ 1.50 | $ 1.50 | $ 1.50 | $ 1.49 | $ 1.49 | $ 1.49 | $ 4.50 | $ 4.47 |
Supplemental Equity and Compr_4
Supplemental Equity and Comprehensive Income (Loss) Information - Changes in Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Increase (decrease) in equity | ||||
Balance at the beginning of the period | $ 7,857 | $ 13,816 | $ 14,770 | $ 15,117 |
Net income (loss) | (2,071) | 3,863 | (7,926) | 5,248 |
Other comprehensive income (loss), net of tax: | ||||
Cumulative translation adjustment | (365) | (821) | (224) | (1,697) |
Defined benefit pension and post-retirement plans adjustment | 50 | 86 | 151 | 258 |
Cash flow hedging instruments | 21 | 110 | 20 | 197 |
Total other comprehensive income (loss), net of tax | (294) | (625) | (53) | (1,242) |
Dividends declared | (828) | (850) | (2,483) | (2,550) |
Stock-based compensation | 45 | 47 | 212 | 225 |
Reacquired stock | (2) | (191) | (31) | (964) |
Dividend to noncontrolling interest | (3) | (3) | ||
Split-off of Food Safety business | (1,988) | (1,988) | ||
Issuances pursuant to stock option and benefit plans | 27 | 84 | 245 | 310 |
Balance at the end of the period | 4,731 | 14,156 | 4,731 | 14,156 |
Common Stock and Additional Paid-in Capital | ||||
Increase (decrease) in equity | ||||
Balance at the beginning of the period | 6,867 | 6,616 | 6,700 | 6,438 |
Other comprehensive income (loss), net of tax: | ||||
Stock-based compensation | 45 | 47 | 212 | 225 |
Balance at the end of the period | 6,912 | 6,663 | 6,912 | 6,663 |
Retained Earnings | ||||
Increase (decrease) in equity | ||||
Balance at the beginning of the period | 40,290 | 45,269 | 47,950 | 45,821 |
Net income (loss) | (2,075) | 3,859 | (7,940) | 5,236 |
Other comprehensive income (loss), net of tax: | ||||
Dividends declared | (828) | (850) | (2,483) | (2,550) |
Issuances pursuant to stock option and benefit plans | (12) | (33) | (152) | (262) |
Balance at the end of the period | 37,375 | 48,245 | 37,375 | 48,245 |
Treasury Stock | ||||
Increase (decrease) in equity | ||||
Balance at the beginning of the period | (32,926) | (30,781) | (33,255) | (30,463) |
Other comprehensive income (loss), net of tax: | ||||
Reacquired stock | (2) | (191) | (31) | (964) |
Split-off of Food Safety business | (1,988) | (1,988) | ||
Issuances pursuant to stock option and benefit plans | 39 | 117 | 397 | 572 |
Balance at the end of the period | (32,889) | (32,843) | (32,889) | (32,843) |
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (decrease) in equity | ||||
Balance at the beginning of the period | (6,433) | (7,362) | (6,673) | (6,750) |
Other comprehensive income (loss), net of tax: | ||||
Cumulative translation adjustment | (364) | (819) | (224) | (1,690) |
Defined benefit pension and post-retirement plans adjustment | 50 | 86 | 151 | 258 |
Cash flow hedging instruments | 21 | 110 | 20 | 197 |
Total other comprehensive income (loss), net of tax | (293) | (623) | (53) | (1,235) |
Balance at the end of the period | (6,726) | (7,985) | (6,726) | (7,985) |
Non-controlling Interest | ||||
Increase (decrease) in equity | ||||
Balance at the beginning of the period | 59 | 74 | 48 | 71 |
Net income (loss) | 4 | 4 | 14 | 12 |
Other comprehensive income (loss), net of tax: | ||||
Cumulative translation adjustment | (1) | (2) | (7) | |
Dividend to noncontrolling interest | (3) | (3) | ||
Balance at the end of the period | $ 59 | $ 76 | $ 59 | $ 76 |
Supplemental Equity and Compr_5
Supplemental Equity and Comprehensive Income (Loss) Information - AOCI Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Attributable to 3M, Net of Tax Roll Forward | ||||
Balance at the beginning of the period | $ 7,857 | $ 13,816 | $ 14,770 | $ 15,117 |
Other comprehensive income (loss), before tax: | ||||
Total other comprehensive income (loss), net of tax | (294) | (625) | (53) | (1,242) |
Balance at the end of the period | 4,731 | 14,156 | 4,731 | 14,156 |
Total Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to 3M, Net of Tax Roll Forward | ||||
Balance at the beginning of the period | (6,433) | (7,362) | (6,673) | (6,750) |
Other comprehensive income (loss), before tax: | ||||
Amounts before reclassifications | (274) | (600) | (88) | (1,280) |
Amounts reclassified out | 27 | 82 | 114 | 287 |
Total other comprehensive income (loss), before tax | (247) | (518) | 26 | (993) |
Tax effect | (46) | (105) | (79) | (242) |
Total other comprehensive income (loss), net of tax | (293) | (623) | (53) | (1,235) |
Balance at the end of the period | (6,726) | (7,985) | (6,726) | (7,985) |
Cumulative Translation Adjustment | ||||
AOCI Attributable to 3M, Net of Tax Roll Forward | ||||
Balance at the beginning of the period | (2,688) | (2,814) | (2,828) | (1,943) |
Other comprehensive income (loss), before tax: | ||||
Amounts before reclassifications | (340) | (773) | (232) | (1,587) |
Amounts reclassified out | 0 | 39 | ||
Total other comprehensive income (loss), before tax | (340) | (773) | (193) | (1,587) |
Tax effect | (24) | (46) | (31) | (103) |
Total other comprehensive income (loss), net of tax | (364) | (819) | (224) | (1,690) |
Balance at the end of the period | (3,052) | (3,633) | (3,052) | (3,633) |
Defined Benefit Pension and Postretirement Plans Adjustment | ||||
AOCI Attributable to 3M, Net of Tax Roll Forward | ||||
Balance at the beginning of the period | (3,737) | (4,581) | (3,838) | (4,753) |
Other comprehensive income (loss), before tax: | ||||
Amounts reclassified out | 65 | 112 | 194 | 339 |
Total other comprehensive income (loss), before tax | 65 | 112 | 194 | 339 |
Tax effect | (15) | (26) | (43) | (81) |
Total other comprehensive income (loss), net of tax | 50 | 86 | 151 | 258 |
Balance at the end of the period | (3,687) | (4,495) | (3,687) | (4,495) |
Cash Flow Hedging Instruments, Unrealized Gain (Loss) | ||||
AOCI Attributable to 3M, Net of Tax Roll Forward | ||||
Balance at the beginning of the period | (8) | 33 | (7) | (54) |
Other comprehensive income (loss), before tax: | ||||
Amounts before reclassifications | 66 | 173 | 144 | 307 |
Amounts reclassified out | (38) | (30) | (119) | (52) |
Total other comprehensive income (loss), before tax | 28 | 143 | 25 | 255 |
Tax effect | (7) | (33) | (5) | (58) |
Total other comprehensive income (loss), net of tax | 21 | 110 | 20 | 197 |
Balance at the end of the period | $ 13 | $ 143 | $ 13 | $ 143 |
Supplemental Equity and Compr_6
Supplemental Equity and Comprehensive Income (Loss) Information - Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Other expense (income), net | $ (200) | $ (24) | $ (317) | $ (112) |
Provision for income taxes | (781) | 271 | (2,755) | 550 |
Net income (loss) | (2,071) | 3,863 | (7,926) | 5,248 |
Cost of sales | 4,580 | 4,728 | 13,799 | 14,647 |
Net income (loss) attributable to 3M | (2,075) | 3,859 | (7,940) | 5,236 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Net income (loss) attributable to 3M | (21) | (63) | (98) | (218) |
Cumulative Translation Adjustment | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Total before tax | 0 | 0 | (39) | 0 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | (39) | 0 |
Defined benefit pension and postretirement plans adjustments | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Total before tax | (65) | (112) | (194) | (339) |
Provision for income taxes | 15 | 26 | 43 | 81 |
Net income (loss) | (50) | (86) | (151) | (258) |
Transition asset | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Other expense (income), net | (1) | 0 | (2) | (1) |
Prior service benefit | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Other expense (income), net | 13 | 14 | 40 | 42 |
Net actuarial loss | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Other expense (income), net | (77) | (126) | (232) | (378) |
Curtailments/Settlements | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Other expense (income), net | 0 | 0 | 0 | (2) |
Cash flow hedging instruments gains (losses) | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Other expense (income), net | (2) | (3) | (6) | (7) |
Total before tax | 38 | 30 | 119 | 52 |
Provision for income taxes | (9) | (7) | (27) | (12) |
Net income (loss) | 29 | 23 | 92 | 40 |
Cost of sales | $ 40 | $ 33 | $ 125 | $ 59 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate (as a percent) | 27.40% | 6.60% | 25.80% | 9.50% | |
Unrecognized tax benefits that would affect the effective tax rate | $ 945 | $ 945 | $ 965 | ||
Deferred tax assets | 3,500 | 3,500 | |||
Deferred tax assets valuation allowance | $ 166 | $ 166 | $ 115 |
Marketable Securities - Current
Marketable Securities - Current and Non-current (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale | ||
Current marketable securities | $ 73 | $ 238 |
Non-current marketable securities | 23 | 23 |
Total marketable securities | 96 | 261 |
Commercial paper | ||
Debt Securities, Available-for-sale | ||
Current marketable securities | 0 | 213 |
Certificates of deposit/time deposits | ||
Debt Securities, Available-for-sale | ||
Current marketable securities | 69 | 21 |
U.S. municipal securities | ||
Debt Securities, Available-for-sale | ||
Current marketable securities | 4 | 4 |
Non-current marketable securities | $ 23 | $ 23 |
Marketable Securities - Contrac
Marketable Securities - Contractual Maturity (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Marketable securities by contractual maturity | |
Due in one year or less | $ 73 |
Due after one year through five years | 15 |
Due after five years through ten years | 8 |
Total marketable securities | $ 96 |
Long-Term Debt and Short-Term_3
Long-Term Debt and Short-Term Borrowings - Narrative (Details) € in Millions | 1 Months Ended | ||||||
May 31, 2023 USD ($) | May 31, 2023 EUR (€) | Mar. 31, 2023 USD ($) | Feb. 28, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jul. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Commercial paper | |||||||
Debt instrument [Line Items] | |||||||
Commercial paper outstanding | $ 1,900,000,000 | $ 0 | |||||
Fixed rate registered note due 2023 | |||||||
Debt instrument [Line Items] | |||||||
Repayment of principal amount | $ 500,000,000 | ||||||
Fixed rate medium term notes due 2023 | |||||||
Debt instrument [Line Items] | |||||||
Repayment of principal amount | € 600 | $ 650,000,000 | |||||
Five year line of credit | Revolving credit facility | |||||||
Debt instrument [Line Items] | |||||||
Maximum borrowing capacity including portion subject to lender approval | $ 4,250,000,000 | 5,250,000,000 | $ 5,250,000,000 | ||||
Term of debt instrument (in years) | 5 years | ||||||
Line of credit facility increase | $ 1,000,000,000 | $ 1,000,000,000 | |||||
Debt instrument, covenant interest ratio | 3 | ||||||
Debt instrument, covenant | 15 | ||||||
364-day credit facility | Revolving credit facility | |||||||
Debt instrument [Line Items] | |||||||
Maximum borrowing capacity including portion subject to lender approval | $ 1,250,000,000 | ||||||
Term of debt instrument (in years) | 364 days | ||||||
Five year line of credit expired in november 2024 | Revolving credit facility | |||||||
Debt instrument [Line Items] | |||||||
Maximum borrowing capacity including portion subject to lender approval | $ 3,000,000,000 | ||||||
Term of debt instrument (in years) | 5 years |
Long-Term Debt and Short-Term_4
Long-Term Debt and Short-Term Borrowings - Future Maturities of Long-term Debt (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Maturities of long-term debt | |
Remainder of 2023 | $ 149 |
2024 | 1,100 |
2025 | 1,866 |
2026 | 1,433 |
2027 | 846 |
2028 | 701 |
After 2028 | 8,030 |
Total long-term debt | $ 14,125 |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Plans - Components of Net Periodic Benefit Cost and Other Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Non-operating expense | ||||
Total net periodic benefit cost (benefit) | $ (31) | $ (65) | $ (93) | $ (199) |
Postretirement Benefits | ||||
Operating expense | ||||
Service cost | 6 | 10 | 18 | 31 |
Non-operating expense | ||||
Interest cost | 21 | 13 | 66 | 39 |
Expected return on plan assets | (20) | (17) | (58) | (52) |
Amortization of transition asset | 0 | 0 | 0 | 0 |
Amortization of prior service benefit | (7) | (8) | (23) | (24) |
Amortization of net actuarial loss | 2 | 10 | 6 | 30 |
Settlements, curtailments, special termination benefits and other | 0 | 2 | ||
Total non-operating expense (benefit) | (4) | (2) | (9) | (5) |
Total net periodic benefit cost (benefit) | 2 | 8 | 9 | 26 |
United States | Qualified and Non-qualified Pension Benefits | ||||
Operating expense | ||||
Service cost | 42 | 64 | 128 | 192 |
Non-operating expense | ||||
Interest cost | 166 | 105 | 497 | 313 |
Expected return on plan assets | (243) | (241) | (731) | (723) |
Amortization of transition asset | 0 | 0 | 0 | 0 |
Amortization of prior service benefit | (6) | (6) | (18) | (18) |
Amortization of net actuarial loss | 73 | 106 | 220 | 318 |
Settlements, curtailments, special termination benefits and other | 0 | 0 | ||
Total non-operating expense (benefit) | (10) | (36) | (32) | (110) |
Total net periodic benefit cost (benefit) | 32 | 28 | 96 | 82 |
International | Qualified and Non-qualified Pension Benefits | ||||
Operating expense | ||||
Service cost | 21 | 32 | 60 | 100 |
Non-operating expense | ||||
Interest cost | 56 | 32 | 165 | 96 |
Expected return on plan assets | (76) | (69) | (226) | (211) |
Amortization of transition asset | 1 | 0 | 2 | 1 |
Amortization of prior service benefit | 0 | 0 | 1 | 0 |
Amortization of net actuarial loss | 2 | 10 | 6 | 30 |
Settlements, curtailments, special termination benefits and other | 0 | 0 | ||
Total non-operating expense (benefit) | (17) | (27) | (52) | (84) |
Total net periodic benefit cost (benefit) | $ 4 | $ 5 | $ 8 | $ 16 |
Pension and Postretirement Be_4
Pension and Postretirement Benefit Plans - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Qualified and Non-qualified Pension Benefits | |
Schedule Of Defined Contribution Plans Disclosures | |
Company contributions | $ 78 |
Postretirement Benefits | |
Schedule Of Defined Contribution Plans Disclosures | |
Company contributions | $ 7 |
Derivatives - Cash Flow Hedges
Derivatives - Cash Flow Hedges (Details) - Cash flow hedge - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivatives in Cash Flow Hedging Relationships | ||||
Accumulated other comprehensive income (loss), unrealized gain (loss) on cash flow hedges | $ 13 | $ 13 | ||
After-tax net unrealized gain (loss) anticipated to be reclassified from AOCI to the income statement within next twelve months | 84 | |||
Pretax Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivative | 66 | $ 173 | 144 | $ 307 |
Interest rate swap and treasury lock in aggregate | ||||
Derivatives in Cash Flow Hedging Relationships | ||||
Accumulated other comprehensive income (loss), unrealized gain (loss) on cash flow hedges | (89) | (89) | ||
Foreign currency forward/option contracts | ||||
Derivatives in Cash Flow Hedging Relationships | ||||
Pretax Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivative | 66 | 173 | 144 | 307 |
Interest rate contracts | ||||
Derivatives in Cash Flow Hedging Relationships | ||||
Pretax Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivative | $ 0 | $ 0 | $ 0 | $ 0 |
Derivatives - Fair Value Hedge
Derivatives - Fair Value Hedge (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Derivatives | ||
Hedged Liability, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Fair value hedges | ||
Derivatives | ||
Carrying Value of the Hedged Liabilities | $ 886,000,000 | $ 903,000,000 |
Fair value hedges | Long-term debt | ||
Derivatives | ||
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities | (117,000,000) | $ (98,000,000) |
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 - Net Investment He
Derivatives - Net Investment Hedges (Details) - Net Investment Hedges € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 EUR (€) | |
Net investment hedges | |||||
Effective portion of net investment hedge reclassified out of other comprehensive income into income | $ 0 | $ 0 | |||
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income (Loss) | $ 65 | $ 199 | (3) | 402 | |
Foreign currency forward contracts | |||||
Net investment hedges | |||||
Derivative, notional amount | € | € 150 | ||||
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income (Loss) | 5 | 11 | 2 | 22 | |
Foreign currency denominated debt | |||||
Net investment hedges | |||||
Face amount of debt designated as a net investment hedge (in euros) | € | € 1,800 | ||||
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income (Loss) | $ 60 | $ 188 | $ (5) | $ 380 |
Derivatives - Schedule of Incom
Derivatives - Schedule of Income Location and Impact of Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
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 (loss) in which the effects of derivatives are recorded | $ 4,580 | $ 4,728 | $ 13,799 | $ 14,647 |
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 (loss) in which the effects of derivatives are recorded | 200 | 24 | 317 | 112 |
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 | (1) | (44) | (6) | 11 |
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 | (2) | (21) | (110) | 3 |
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 (loss) into income | 40 | 33 | 125 | 59 |
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 (loss) into income | 0 | 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 (loss) into income | 0 | 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 (loss) into income | (2) | (3) | (6) | (7) |
Fair value hedges | Interest rate contracts | Cost of sales | ||||
Gain or (loss) on fair value hedging relationships: | ||||
Hedged items | 0 | 0 | 0 | 0 |
Fair value hedges | Interest rate contracts | Other expense (income), net | ||||
Gain or (loss) on fair value hedging relationships: | ||||
Hedged items | 21 | 36 | 18 | 107 |
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 | 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 | $ (21) | $ (36) | $ (18) | $ (107) |
Derivatives - BS Location (Deta
Derivatives - BS Location (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Location and Fair Value Amount of Derivative Instruments | ||
Derivative assets, fair value | $ 160 | $ 217 |
Derivative liability, fair value | 139 | 142 |
Derivatives designated as hedging instruments | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative assets, fair value | 154 | 144 |
Derivative liability, fair value | 129 | 138 |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Current Balance Sheet Location | ||
Location and Fair Value Amount of Derivative Instruments | ||
Gross Notional Amount | 1,866 | 2,368 |
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 | 529 | 835 |
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 | 112 | 89 |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Other assets | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative assets, fair value | 42 | 55 |
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 | 7 | 27 |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Other liabilities | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative liability, fair value | 2 | 9 |
Derivatives designated as hedging instruments | Interest rate contracts | Noncurrent balance sheet location | ||
Location and Fair Value Amount of Derivative Instruments | ||
Gross Notional Amount | 800 | 800 |
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 | 120 | 102 |
Derivatives not designated as hedging instruments | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative assets, fair value | 6 | 73 |
Derivative liability, fair value | 10 | 4 |
Derivatives not designated as hedging instruments | Foreign currency forward/option contracts | Current Balance Sheet Location | ||
Location and Fair Value Amount of Derivative Instruments | ||
Gross Notional Amount | 776 | 2,816 |
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 | 6 | 73 |
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 | $ 10 | $ 4 |
Derivatives - Offsetting Assets
Derivatives - Offsetting Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Offsetting | ||
Derivative asset, subject to master netting arrangement, before offset | $ 160 | $ 217 |
Derivative asset, subject to master netting arrangement, liability offset | 19 | 40 |
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 | 141 | 177 |
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 | 160 | 217 |
Net amount of derivative assets, including not subject to master netting arrangement | $ 141 | $ 177 |
Derivatives - Offsetting Liabil
Derivatives - Offsetting Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Offsetting | ||
Derivative liability, subject to master netting arrangement, before offset | $ 139 | $ 142 |
Derivative liability, subject to master netting arrangement, asset offset | 19 | 40 |
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 | 120 | 102 |
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 | 139 | 142 |
Net amount of derivative liabilities, including not subject to master netting arrangements | $ 120 | $ 102 |
Derivatives - Currency Effects
Derivatives - Currency Effects (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Foreign Currency [Abstract] | ||||
Year-on-year foreign currency transaction effects, including hedging impact, increase (decrease) impact on pre-tax (loss) income | $ (18) | $ 43 | $ (92) | $ 70 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | $ 96 | $ 261 |
Derivative assets, fair value | 160 | 217 |
Derivative liability, fair value | 139 | 142 |
Fair value on a recurring basis | Foreign currency forward/option contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative assets, fair value | 160 | 217 |
Derivative liability, fair value | 19 | 40 |
Fair value on a recurring basis | Interest rate contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative liability, fair value | 120 | 102 |
Fair value on a recurring basis | Commercial paper | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 213 |
Fair value on a recurring basis | Certificates of deposit/time deposits | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 69 | 21 |
Fair value on a recurring basis | U.S. municipal securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 27 | 27 |
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, fair value | 0 | 0 |
Fair value on a recurring basis | Level 1 | Interest rate contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative liability, fair value | 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. 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 | 160 | 217 |
Derivative liability, fair value | 19 | 40 |
Fair value on a recurring basis | Level 2 | Interest rate contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative liability, fair value | 120 | 102 |
Fair value on a recurring basis | Level 2 | Commercial paper | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 213 |
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 | 69 | 21 |
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, fair value | 0 | 0 |
Fair value on a recurring basis | Level 3 | Interest rate contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative liability, fair value | 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. municipal securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | $ 27 | $ 27 |
Fair Value Measurements - Rec_2
Fair Value Measurements - Recurring Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reconciliation of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3) | ||||
Beginning balance | $ 27 | $ 30 | $ 27 | $ 30 |
Total gains or losses included in earnings (losses) | 0 | 0 | 0 | 0 |
Total gains or losses included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases and issuances | 0 | 0 | 0 | 0 |
Sales and settlements | 0 | 0 | 0 | 0 |
Transfers in and/or out of level 3 | 0 | 0 | 0 | 0 |
Ending balance | 27 | 30 | 27 | 30 |
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 | $ 0 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Basis (Details) - Fair value on a nonrecurring basis - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||
Long-lived asset impairment charges | $ 0 | $ 0 |
Disposal group, Held-for-sale, Not discontinued operations | ||
Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||
Other current held for sale liabilities | $ 50 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying Value | ||
Financial Instruments | ||
Long-term debt, excluding current portion | $ 12,876 | $ 14,001 |
Fair Value | ||
Financial Instruments | ||
Long-term debt, excluding current portion | $ 10,970 | $ 12,484 |
Commitments and Contingencies -
Commitments and Contingencies - Respirator (Details) respirator in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Oct. 31, 2019 USD ($) respirator | Apr. 30, 2018 USD ($) plaintiff | Sep. 30, 2023 USD ($) party | Sep. 30, 2023 USD ($) party plaintiff | Sep. 30, 2023 USD ($) party case | Sep. 30, 2023 USD ($) party lawsuit | Sep. 30, 2023 USD ($) party | Dec. 31, 2022 plaintiff | Dec. 31, 2019 USD ($) | Dec. 31, 2018 lawsuit | |
Respirator Mask/Asbestos Litigation | ||||||||||
Loss contingencies | ||||||||||
Total number of named claimants | plaintiff | 3,980 | 4,028 | ||||||||
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 | $ 601,000,000 | $ 601,000,000 | $ 601,000,000 | $ 601,000,000 | $ 601,000,000 | |||||
Increase (decrease) accrued loss contingency reserve | 64,000,000 | |||||||||
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 | Class Action Fairness Act | ||||||||||
Loss contingencies | ||||||||||
Total number of named claimants | plaintiff | 400 | |||||||||
Number of lawsuits filed | case | 2 | |||||||||
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 | $ 54,000,000 | $ 54,000,000 | $ 54,000,000 | $ 54,000,000 | 54,000,000 | |||||
Quarterly fee paid to Cabot to retain responsibility and liability for products | $ 100,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Environmental (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||||||||||
May 31, 2023 EUR (€) party | Mar. 31, 2023 party | Feb. 28, 2023 plaintiff | Aug. 31, 2022 plaintiff | Jul. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 EUR (€) | Jun. 30, 2020 lawsuit | Jun. 30, 2019 lawsuit | May 31, 2019 lawsuit | Apr. 30, 2019 USD ($) | Mar. 31, 2019 facility lawsuit | Jul. 31, 2018 USD ($) facility chemical defendant mi | Sep. 30, 2023 USD ($) lawsuit party | Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) lawsuit case perfluorinated_material party plaintiff | Mar. 31, 2022 EUR (€) | Nov. 30, 2021 USD ($) | |
Product Liability Litigation | |||||||||||||||||||
Increase in liabilities, gross | € 571,000,000 | $ 355,000,000 | $ 500,000,000 | ||||||||||||||||
Belgian Civil Litigation | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Number of lawsuits pending | party | 8 | 8 | |||||||||||||||||
Settlement amount paid | € | € 500 | ||||||||||||||||||
Number of family members awarded | party | 4 | ||||||||||||||||||
City of Muscle Shoals, Alabama vs. 3M | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Total number of named claimants | plaintiff | 2 | ||||||||||||||||||
PFAS Contamination | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Number of lawsuits filed | party | 2 | 2 | |||||||||||||||||
PWS Settlement | Pending Litigation | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Estimate of possible settlement amount | $ | $ 12,500,000,000 | $ 12,500,000,000 | |||||||||||||||||
Pre-tax charge on settlement | $ | $ 10,300,000,000 | ||||||||||||||||||
Present value of possible loss | 5.20% | 5.20% | |||||||||||||||||
Putative Class Action | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Number of lawsuits filed | party | 1 | ||||||||||||||||||
Minimum | PWS Settlement | Pending Litigation | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Estimate of possible settlement amount | $ | $ 10,500,000,000 | $ 10,500,000,000 | |||||||||||||||||
Maximum | PWS Settlement | Pending Litigation | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Estimate of possible settlement amount | $ | $ 12,500,000,000 | $ 12,500,000,000 | |||||||||||||||||
Zwijndrecht Site | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Investment plan for environmental remediation | € | € 125,000,000 | € 150,000,000 | |||||||||||||||||
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 | 6,006 | ||||||||||||||||||
Number of class action lawsuits | 48 | ||||||||||||||||||
Number of public water system lawsuits | 689 | 689 | |||||||||||||||||
Environmental Matters - Aqueous Film Forming Foam Litigation | Various state courts | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Number of lawsuits pending | 5 | 5 | |||||||||||||||||
Number of lawsuits filed | 8 | ||||||||||||||||||
Number of lawsuits served | 194 | ||||||||||||||||||
Environmental Matters - Aqueous Film Forming Foam Litigation | Federal court | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Number of lawsuits pending | 2 | 2 | |||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Increase (decrease) accrued loss contingency reserve | $ | $ 10,500,000,000 | ||||||||||||||||||
Litigation payments | $ | $ 201,000,000 | ||||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | New Jersey | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Number of lawsuits filed | 30 | ||||||||||||||||||
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 | |||||||||||||||||||
Settlement amount paid | $ | $ 65,000,000 | ||||||||||||||||||
Number of lawsuits filed | 10 | ||||||||||||||||||
Total number of named claimants | plaintiff | 20 | ||||||||||||||||||
Number of cases settled | 32 | ||||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | U.S. District Court of Eastern District of New York | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Number of lawsuits pending | 22 | 22 | |||||||||||||||||
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) | perfluorinated_material | 2 | ||||||||||||||||||
Environmental Matters Other Pfc Related Environmental Litigation, Individual Cases | New Jersey | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Number of lawsuits filed | 20 | ||||||||||||||||||
Environmental Matters - Other Environmental Litigation | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Accrued loss contingency reserve | $ | $ 10,900,000,000 | $ 10,900,000,000 | |||||||||||||||||
Environmental Matters - Other Environmental Litigation | Other current liabilities | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Accrued loss contingency reserve | $ | 3,100,000,000 | 3,100,000,000 | |||||||||||||||||
Environmental Matters - Other Environmental Litigation | Other liabilities | |||||||||||||||||||
Product Liability Litigation | |||||||||||||||||||
Accrued loss contingency reserve | $ | 7,800,000,000 | 7,800,000,000 | |||||||||||||||||
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 | $ | 35,000,000 | $ 35,000,000 | |||||||||||||||||
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 | $ 0 | |||||||||||||||||
Insurance receivables | $ | $ 8,000,000 | $ 8,000,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Product Liability (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 USD ($) bellwetherPlaintiff case | Aug. 31, 2023 USD ($) | Dec. 31, 2020 plaintiff | Sep. 30, 2023 USD ($) case | Jun. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) case plaintiff lawsuit | Jul. 31, 2022 USD ($) | |
State court | |||||||
Product Liability Litigation | |||||||
Number of lawsuits filed | case | 4 | ||||||
Product Liability - Dual-Ended Combat Arms Earplugs | |||||||
Product Liability Litigation | |||||||
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 | ||||||
Product Liability - Dual-Ended Combat Arms Earplugs | Aearo Entities | |||||||
Product Liability Litigation | |||||||
Committed amount to product liability accrual | $ 600 | $ 600 | $ 600 | ||||
Product Liability - Dual-Ended Combat Arms Earplugs | Other Investments | Aearo Entities | |||||||
Product Liability Litigation | |||||||
Committed amount to product liability accrual | 700 | 700 | 700 | ||||
Product Liability - Dual-Ended Combat Arms Earplugs | Other Liabilities | Aearo Entities | |||||||
Product Liability Litigation | |||||||
Committed amount to product liability accrual | 900 | 900 | 900 | ||||
Product Liability - Dual-Ended Combat Arms Earplugs | Other Assets | Aearo Entities | |||||||
Product Liability Litigation | |||||||
Committed amount to product liability accrual | 300 | 300 | $ 300 | ||||
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 | Minimum | |||||||
Product Liability Litigation | |||||||
Total number of named claimants | plaintiff | 260,000 | ||||||
Product Liability - Dual-Ended Combat Arms Earplugs | Maximum | |||||||
Product Liability Litigation | |||||||
Total number of named claimants | plaintiff | 285,000 | ||||||
CAE Settlement | Settled Litigation | |||||||
Product Liability Litigation | |||||||
Pre-tax charge on product liability | 4,200 | ||||||
Settlement amount paid | $ 6,000 | ||||||
Cash consideration | 5,000 | ||||||
Payments in common stock | $ 1,000 | ||||||
Percentage of individuals with potential litigation claims enrolled | 98% | ||||||
Pre-tax present value | $ 5,300 | ||||||
Estimated discount interest rate | 5.60% | ||||||
Accrual, net | $ 1,100 | ||||||
Litigation payments | 10 | ||||||
Payments for fees and settlements related to litigation | $ 147 | ||||||
Number of bellwether plaintiffs | bellwetherPlaintiff | 13 | ||||||
Accrued loss contingency reserve | $ 5,200 | 5,200 | $ 5,200 | ||||
CAE Settlement | Other current liabilities | Settled Litigation | |||||||
Product Liability Litigation | |||||||
Accrued loss contingency reserve | 1,800 | 1,800 | 1,800 | ||||
CAE Settlement | Other liabilities | Settled Litigation | |||||||
Product Liability Litigation | |||||||
Accrued loss contingency reserve | $ 3,400 | $ 3,400 | 3,400 | ||||
CAE Settlement | Product Liability Dual Ended Combat Arms Earplugs & CAE Settlement | Settled Litigation | |||||||
Product Liability Litigation | |||||||
Increase (decrease) accrued loss contingency reserve | $ 4,200 | ||||||
Product Liability - Bair Hugger | |||||||
Product Liability Litigation | |||||||
Number of lawsuits filed | lawsuit | 5,922 | ||||||
Number of lawsuits pending | case | 2 | 2 | 2 | ||||
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_4
Commitments and Contingencies - Federal False Claims Act / Qui Tam Litigation (Details) - Federal False Claims Act / Qui Tam Litigation | 9 Months Ended | |
Sep. 30, 2023 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 |
Commitments and Contingencies_5
Commitments and Contingencies - Compliance Matter (Details) $ in Millions | 1 Months Ended |
Aug. 31, 2023 USD ($) | |
Compliance Matter | |
Loss contingencies | |
Loss contingency accrual, payments | $ 6.5 |
Business Segments (Details)
Business Segments (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2023 segment division | Sep. 30, 2023 USD ($) group segment | Dec. 31, 2022 segment division | |
Business Segment Information | |||
Number of business segments | 3 | 4 | 4 |
Number of groups of products | group | 2 | ||
Number of divisions | segment | 3 | 4 | |
Two Groups | |||
Business Segment Information | |||
Net sales | $ | $ 25 |
Business Segments - Schedule of
Business Segments - Schedule of Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Business Segment Information | ||||
Net sales | $ 8,312 | $ 8,619 | $ 24,668 | $ 26,150 |
Total business segment operating income (loss) | (2,654) | 4,156 | (10,371) | 5,907 |
Gain on business divestitures | 36 | 2,724 | 36 | 2,724 |
Total operating expenses | 10,966 | 4,463 | 35,039 | 20,243 |
Other expense (income), net | 200 | 24 | 317 | 112 |
Income (loss) before income taxes | (2,854) | 4,132 | (10,688) | 5,795 |
Operating Segments | ||||
Business Segment Information | ||||
Total business segment operating income (loss) | 1,784 | 1,876 | 4,808 | 4,139 |
Operating Segments | Safety and Industrial | ||||
Business Segment Information | ||||
Net sales | 2,751 | 2,894 | 8,295 | 8,869 |
Total business segment operating income (loss) | 666 | 652 | 1,801 | 572 |
Operating Segments | Transportation and Electronics | ||||
Business Segment Information | ||||
Net sales | 2,171 | 2,239 | 6,412 | 6,847 |
Total business segment operating income (loss) | 389 | 475 | 1,093 | 1,414 |
Operating Segments | Health Care | ||||
Business Segment Information | ||||
Net sales | 2,073 | 2,076 | 6,158 | 6,383 |
Total business segment operating income (loss) | 460 | 450 | 1,231 | 1,387 |
Operating Segments | Consumer | ||||
Business Segment Information | ||||
Net sales | 1,315 | 1,409 | 3,800 | 4,048 |
Total business segment operating income (loss) | 269 | 299 | 683 | 766 |
Corporate and Unallocated | ||||
Business Segment Information | ||||
Net sales | 2 | 1 | 3 | 3 |
Net costs for significant litigation | (4,270) | (246) | (14,709) | (812) |
Divestiture costs | (132) | (6) | (359) | (6) |
Gain on business divestitures | 36 | 2,724 | 36 | 2,724 |
Divestiture-related restructuring actions | 0 | (41) | 0 | (41) |
Russia exit (charges) benefits | 0 | (109) | 18 | (109) |
Total corporate special items | (4,366) | 2,322 | (15,014) | 1,756 |
Other corporate expense - net | (72) | (42) | (165) | 12 |
Total operating expenses | $ (4,438) | $ 2,280 | $ (15,179) | $ 1,768 |