Document and Entity Information
Document and Entity Information - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Document Information | |||
Entity Registrant Name | 3M COMPANY | ||
Entity Central Index Key | 0000066740 | ||
Document Type | 10-K | ||
Document Transition Report | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 1-3285 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 41-0417775 | ||
Entity Address, Address Line One | 3M Center | ||
Entity Address, City or Town | St. Paul | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55144 | ||
City Area Code | 651 | ||
Local Phone Number | 733-1110 | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
ICFR Auditor Attestation Flag | true | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 101.7 | $ 89.9 | |
Entity Common Stock, Shares Outstanding | 579.1 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Common Stock | New York Stock Exchange, Inc. | |||
Document Information | |||
Title of 12(b) Security | Common Stock, Par Value $.01 Per Share | ||
Trading Symbol | MMM | ||
Security Exchange Name | NYSE | ||
Common Stock | Chicago Stock Exchange, Inc. | |||
Document Information | |||
Title of 12(b) Security | Common Stock, Par Value $.01 Per Share | ||
Trading Symbol | MMM | ||
Security Exchange Name | CHX | ||
0.375% Notes due 2022 | New York Stock Exchange, Inc. | |||
Document Information | |||
Title of 12(b) Security | 0.375% Notes due 2022 | ||
Trading Symbol | MMM22A | ||
Security Exchange Name | NYSE | ||
0.950% Notes due 2023 | New York Stock Exchange, Inc. | |||
Document Information | |||
Title of 12(b) Security | 0.950% Notes due 2023 | ||
Trading Symbol | MMM23 | ||
Security Exchange Name | NYSE | ||
1.500% Notes due 2026 | New York Stock Exchange, Inc. | |||
Document Information | |||
Title of 12(b) Security | 1.500% Notes due 2026 | ||
Trading Symbol | MMM26 | ||
Security Exchange Name | NYSE | ||
1.750% Notes due 2030 | New York Stock Exchange, Inc. | |||
Document Information | |||
Title of 12(b) Security | 1.750% Notes due 2030 | ||
Trading Symbol | MMM30 | ||
Security Exchange Name | NYSE | ||
1.500% Notes due 2031 | New York Stock Exchange, Inc. | |||
Document Information | |||
Title of 12(b) Security | 1.500% Notes due 2031 | ||
Trading Symbol | MMM31 | ||
Security Exchange Name | NYSE |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statement of Income | |||
Net sales | $ 32,184 | $ 32,136 | $ 32,765 |
Operating expenses | |||
Cost of sales | 16,605 | 17,136 | 16,682 |
Selling, general and administrative expenses | 6,929 | 7,029 | 7,602 |
Research, development and related expenses | 1,878 | 1,911 | 1,821 |
Gain on sale of businesses | (389) | (114) | (547) |
Total operating expenses | 25,023 | 25,962 | 25,558 |
Operating income | 7,161 | 6,174 | 7,207 |
Interest expense and income | |||
Other expense (income), net | 450 | 462 | 207 |
Income before income taxes | 6,711 | 5,712 | 7,000 |
Provision for income taxes | 1,318 | 1,130 | 1,637 |
Income of consolidated group | 5,393 | 4,582 | 5,363 |
Income (loss) from unconsolidated subsidiaries, net of taxes | (5) | ||
Net income including noncontrolling interest | 5,388 | 4,582 | 5,363 |
Less: Net income (loss) attributable to noncontrolling interest | 4 | 12 | 14 |
Net income attributable to 3M | $ 5,384 | $ 4,570 | $ 5,349 |
Weighted average 3M common shares outstanding - basic (in shares) | 577.6 | 577 | 588.5 |
Earnings per share attributable to 3M common shareholders - basic (in dollars per share) | $ 9.32 | $ 7.92 | $ 9.09 |
Weighted average 3M common shares outstanding - diluted (in shares) | 582.2 | 585.1 | 602 |
Earnings per share attributable to 3M common shareholders - diluted (in dollars per share) | $ 9.25 | $ 7.81 | $ 8.89 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statement of Comprehensive Income | |||
Net income including noncontrolling interest | $ 5,388 | $ 4,582 | $ 5,363 |
Other comprehensive income (loss), net of tax: | |||
Cumulative translation adjustment | 447 | 211 | (467) |
Defined benefit pension and postretirement plans adjustment | 171 | (560) | 444 |
Cash flow hedging instruments | 176 | ||
Cash flow hedging instruments | (142) | (72) | |
Total other comprehensive income (loss), net of tax | 476 | (421) | 153 |
Comprehensive income (loss) including noncontrolling interest | 5,864 | 4,161 | 5,516 |
Comprehensive (income) loss attributable to noncontrolling interest | (2) | (11) | (8) |
Comprehensive income (loss) attributable to 3M | $ 5,862 | $ 4,150 | $ 5,508 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 4,634 | $ 2,353 |
Marketable securities - current | 404 | 98 |
Accounts receivable - net of allowances of $233 and $161 | 4,705 | 4,791 |
Inventories | ||
Finished goods | 2,081 | 2,003 |
Work in process | 1,226 | 1,194 |
Raw materials and supplies | 932 | 937 |
Total inventories | 4,239 | 4,134 |
Prepaids | 675 | 704 |
Other current assets | 325 | 891 |
Total current assets | 14,982 | 12,971 |
Property, plant and equipment | 26,650 | 26,124 |
Less: Accumulated depreciation | (17,229) | (16,791) |
Property, plant and equipment - net | 9,421 | 9,333 |
Operating lease right of use assets | 864 | 858 |
Goodwill | 13,802 | 13,444 |
Intangible assets - net | 5,835 | 6,379 |
Other assets | 2,440 | 1,674 |
Total assets | 47,344 | 44,659 |
Current liabilities | ||
Short-term borrowings and current portion of long-term debt | 806 | 2,795 |
Accounts payable | 2,561 | 2,228 |
Accrued payroll | 747 | 702 |
Accrued income taxes | 300 | 194 |
Operating lease liabilities - current | 256 | 247 |
Other current liabilities | 3,278 | 3,056 |
Total current liabilities | 7,948 | 9,222 |
Long-term debt | 17,989 | 17,518 |
Pension and postretirement benefits | 4,405 | 3,911 |
Operating lease liabilities | 609 | 607 |
Other liabilities | 3,462 | 3,275 |
Total liabilities | 34,413 | 34,533 |
Commitments and contingencies (Note 16) | ||
3M Company shareholders' equity: | ||
Common stock par value, $.01 par value; 944,033,056 shares issued; Shares outstanding - December 31, 2020: 577,749,638; Shares outstanding - December 31, 2019: 575,184,835 | 9 | 9 |
Additional paid-in capital | 6,162 | 5,907 |
Retained earnings | 43,761 | 42,135 |
Treasury stock, at cost: | (29,404) | (29,849) |
Accumulated other comprehensive income (loss) | (7,661) | (8,139) |
Total 3M Company shareholders' equity | 12,867 | 10,063 |
Noncontrolling interest | 64 | 63 |
Total equity | 12,931 | 10,126 |
Total liabilities and equity | $ 47,344 | $ 44,659 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheet | ||
Allowances for doubtful accounts receivable | $ 233 | $ 161 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 944,033,056 | 944,033,056 |
Common stock, Shares outstanding (in shares) | 577,749,638 | 575,184,835 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Common Stock and Additional Paid-in Capital | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Treasury Stock | Total Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment | Total Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balance at the beginning of the period at Dec. 31, 2017 | $ 5,361 | $ 39,115 | $ (25,887) | $ (7,026) | $ 59 | $ 11,622 | |||
Increase (decrease) in equity | |||||||||
Net income | 5,349 | 14 | 5,363 | ||||||
Other comprehensive income (loss), net of tax: | |||||||||
Cumulative translation adjustment | (461) | (6) | (467) | ||||||
Defined benefit pension and postretirement plans adjustment | 444 | 444 | |||||||
Cash flow hedging instruments - unrealized gain (loss) | 176 | 176 | |||||||
Total other comprehensive income (loss), net of tax | 153 | ||||||||
Dividends declared | (3,193) | (3,193) | |||||||
Transfer of ownership involving non-wholly owned subsidiaries | 14 | 1 | (15) | ||||||
Stock-based compensation | 291 | 291 | |||||||
Reacquired stock | (4,888) | (4,888) | |||||||
Issuances pursuant to stock option and benefit plans | (649) | 1,149 | 500 | ||||||
Balance at the end of the period (ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income) at Dec. 31, 2018 | $ 853 | $ (853) | |||||||
Balance at the end of the period (ASU 2016-02 Leases) at Dec. 31, 2018 | $ 14 | $ 14 | |||||||
Balance at the end of the period at Dec. 31, 2018 | 5,652 | 40,636 | (29,626) | (6,866) | 52 | 9,848 | |||
Increase (decrease) in equity | |||||||||
Net income | 4,570 | 12 | 4,582 | ||||||
Other comprehensive income (loss), net of tax: | |||||||||
Cumulative translation adjustment | 212 | (1) | 211 | ||||||
Defined benefit pension and postretirement plans adjustment | (560) | (560) | |||||||
Cash flow hedging instruments - unrealized gain (loss) | (72) | (72) | |||||||
Total other comprehensive income (loss), net of tax | (421) | ||||||||
Dividends declared | (3,316) | (3,316) | |||||||
Stock-based compensation | 264 | 264 | |||||||
Reacquired stock | (1,381) | (1,381) | |||||||
Issuances pursuant to stock option and benefit plans | (622) | 1,158 | 536 | ||||||
Balance at the end of the period at Dec. 31, 2019 | 5,916 | 42,135 | (29,849) | (8,139) | 63 | 10,126 | |||
Increase (decrease) in equity | |||||||||
Net income | 5,384 | 4 | 5,388 | ||||||
Other comprehensive income (loss), net of tax: | |||||||||
Cumulative translation adjustment | 449 | (2) | 447 | ||||||
Defined benefit pension and postretirement plans adjustment | 171 | 171 | |||||||
Cash flow hedging instruments - unrealized gain (loss) | (142) | (142) | |||||||
Total other comprehensive income (loss), net of tax | 476 | ||||||||
Dividends declared | (3,388) | (3,388) | |||||||
Purchase of non-controlling interest | (1) | (1) | |||||||
Stock-based compensation | 255 | 255 | |||||||
Reacquired stock | (358) | (358) | |||||||
Issuances pursuant to stock option and benefit plans | (370) | 803 | 433 | ||||||
Balance at the end of the period at Dec. 31, 2020 | $ 6,171 | $ 43,761 | $ (29,404) | $ (7,661) | $ 64 | $ 12,931 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statement of Changes in Equity | |||||||||||||||
Dividends declared in current period (in dollars per share) | $ 1.47 | $ 1.47 | $ 1.47 | $ 1.47 | $ 1.44 | $ 1.44 | $ 1.44 | $ 1.44 | $ 1.36 | $ 1.36 | $ 1.36 | $ 1.36 | $ 5.88 | $ 5.76 | $ 5.44 |
Supplemental Share Information
Supplemental Share Information - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Share Information Treasury Stock | |||
Treasury Stock, Shares, Beginning Balance | 368,848,221 | 367,457,888 | 349,148,819 |
Reacquired stock | 2,286,109 | 7,575,647 | 23,526,293 |
Issuances pursuant to stock options and benefit plans | (4,850,912) | (6,185,314) | (5,217,224) |
Treasury Stock, Shares, Ending Balance | 366,283,418 | 368,848,221 | 367,457,888 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities | |||
Net income including noncontrolling interest | $ 5,388 | $ 4,582 | $ 5,363 |
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities | |||
Depreciation and amortization | 1,911 | 1,593 | 1,488 |
Company pension and postretirement contributions | (156) | (210) | (370) |
Company pension and postretirement expense | 406 | 357 | 410 |
Stock-based compensation expense | 262 | 278 | 302 |
Gain on sale of businesses | (389) | (111) | (545) |
Deferred income taxes | (165) | (273) | (57) |
Loss on deconsolidation of Venezuelan subsidiary | 162 | ||
Changes in assets and liabilities | |||
Accounts receivable | 165 | 345 | (305) |
Inventories | (91) | 370 | (509) |
Accounts payable | 252 | (117) | 408 |
Accrued income taxes (current and long-term) | 132 | 205 | 134 |
Other - net | 398 | (111) | 120 |
Net cash provided by (used in) operating activities | 8,113 | 7,070 | 6,439 |
Cash Flows from Investing Activities | |||
Purchases of property, plant and equipment (PP&E) | (1,501) | (1,699) | (1,577) |
Proceeds from sale of PP&E and other assets | 128 | 123 | 262 |
Acquisitions, net of cash acquired | (25) | (4,984) | 13 |
Purchases of marketable securities and investments | (1,579) | (1,635) | (1,828) |
Proceeds from maturities and sale of marketable securities and investments | 1,811 | 1,443 | 2,497 |
Proceeds from sale of businesses, net of cash sold | 576 | 236 | 846 |
Other - net | 10 | 72 | 9 |
Net cash provided by (used in) investing activities | (580) | (6,444) | 222 |
Cash Flows from Financing Activities | |||
Change in short-term debt - net | (143) | (316) | (284) |
Repayment of debt (maturities greater than 90 days) | (3,482) | (2,716) | (1,034) |
Proceeds from debt (maturities greater than 90 days) | 1,750 | 6,281 | 2,251 |
Purchases of treasury stock | (368) | (1,407) | (4,870) |
Proceeds from issuance of treasury stock pursuant to stock option and benefit plans | 429 | 547 | 485 |
Dividends paid to shareholders | (3,388) | (3,316) | (3,193) |
Other - net | (98) | (197) | (56) |
Net cash provided by (used in) financing activities | (5,300) | (1,124) | (6,701) |
Effect of exchange rate changes on cash and cash equivalents | 48 | (2) | (160) |
Net increase (decrease) in cash and cash equivalents | 2,281 | (500) | (200) |
Cash and cash equivalents at beginning of year | 2,353 | 2,853 | 3,053 |
Cash and cash equivalents at end of period | $ 4,634 | $ 2,353 | $ 2,853 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies | |
Significant Accounting Policies | NOTE 1. Significant Accounting Policies Consolidation: Basis of presentation: As described in Note 19, effective in the first quarter of 2020, the Company changed its business segment reporting in its continuing effort to improve the alignment of businesses around markets and customers. Additionally, the Company consolidated the way it presents geographic area net sales by providing an aggregate Americas geographic region (combining former United States and Latin America and Canada areas). Also, effective in the second quarter of 2020, the measure of segment operating performance used by 3M’s chief operating decision maker changed and, as a result, the Company’s disclosed measure of segment profit/loss has been updated. Information provided herein reflects the impact of these changes for all periods presented. Foreign currency translation: 3M had a consolidating subsidiary in Venezuela, the financial statements of which were remeasured as if its functional currency were that of its parent because Venezuela’s economic environment is considered highly inflationary. The operating income of this subsidiary was immaterial as a percent of 3M’s consolidated operating income for the periods presented. In light of circumstances, including the country’s unstable environment and heightened unrest leading to sustained lack of demand, and expectation that these circumstances will continue for the foreseeable future, during May 2019, 3M concluded it no longer met the criteria of control in order to continue consolidating its Venezuelan operations. As a result, as of Use of estimates: Cash and cash equivalents: Marketable securities: availability for use in current operations. 3M reviews impairments associated with its marketable securities in accordance with the measurement guidance provided by ASC 320, Investments-Debt Securities and ASC 326-30, Available-for-Sale Debt Securities, when determining whether a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. An impairment relating to credit losses is recorded through an allowance for credit losses. The allowance is limited by the amount that the fair value is less than the amortized cost basis. A change in the allowance for credit losses is recorded into earnings in the period of the change. Any impairment that has not been recorded through an allowance for credit losses is recorded through accumulated other comprehensive income as a component of shareholders’ equity. The factors considered in determining whether a credit loss exists can include the extent to which fair value is less than the amortized cost basis, changes in the credit quality of the underlying loan obligors, credit ratings actions, as well as other factors. When a credit loss exists, the Company compares the present value of cash flows expected to be collected from the debt security with the amortized cost basis of the security to determine what allowance amount, if any, should be recorded. Amounts are reclassified out of accumulated other comprehensive income and into earnings upon sale or a change in the portions of impairment related to credit losses and not related to credit losses. Investments: Other assets: Inventories: Property, plant and equipment: ten twenty three five Conditional asset retirement obligations: Goodwill: tested for impairment between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is done at a reporting unit level, with all goodwill assigned to a reporting unit. Reporting units are one level below the business segment level, but are required to be combined when reporting units within the same segment have similar economic characteristics. 3M did not combine any of its reporting units for impairment testing. The impairment loss is measured as the amount by which the carrying value of the reporting unit’s net assets exceeds its estimated fair value, not to exceed the carrying value of the reporting unit’s goodwill. The estimated fair value of a reporting unit is determined using earnings for the reporting unit multiplied by a price/earnings ratio for comparable industry groups or by using a discounted cash flow analysis. Companies have the option to first assess qualitative factors to determine whether the fair value of a reporting unit is not “more likely than not” less than its carrying amount, which is commonly referred to as “Step 0”. 3M has chosen not to apply Step 0 for its annual goodwill assessments. Intangible assets: four ten seven four six five Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss is recognized when the carrying amount exceeds the estimated undiscounted cash flows from the asset’s or asset group’s ongoing use and eventual disposition. If an impairment is identified, the amount of the impairment loss recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. Intangible assets with an indefinite life, namely certain tradenames, are not amortized. Indefinite-lived intangible assets are tested for impairment annually, and are tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount may be impaired. An impairment loss would be recognized when the fair value is less than the carrying value of the indefinite-lived intangible asset. Restructuring actions: Revenue (sales) recognition: The Company recognizes revenue in light of the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts with when legal title, physical possession and risks and rewards of goods/services transfers to the customer. In limited arrangements, control transfers over time as the customer simultaneously receives and consumes the benefits as 3M completes the performance obligation(s). Revenue is recognized at the transaction price which the Company expects to be entitled. When determining the transaction price, 3M estimates variable consideration applying the portfolio approach practical expedient under ASC 606. The main sources of variable consideration for 3M are customer rebates, trade promotion funds, and cash discounts. These sales incentives are recorded as a reduction to revenue at the time of the initial sale using the most-likely amount estimation method. The most-likely amount method is based on the single most likely outcome from a range of possible consideration outcomes. The range of possible consideration outcomes are primarily derived from the following inputs: sales terms, historical experience, trend analysis, and projected market conditions in the various markets served. Because 3M serves numerous markets, the sales incentive programs offered vary across businesses, but the most common incentive relates to amounts paid or credited to customers for achieving defined volume levels or growth objectives. There are no material instances where variable consideration is constrained and not recorded at the initial time of sale. Free goods are accounted for as an expense and recorded in cost of sales. Product returns are recorded as a reduction to revenue based on anticipated sales returns that occur in the normal course of business. 3M primarily has assurance-type warranties that do not result in separate performance obligations. Sales, use, value-added, and other excise taxes are not recognized in revenue. The Company has elected to present revenue net of sales taxes and other similar taxes. For substantially all arrangements recognized over time, the Company applies the “right to invoice” practical expedient. As a result, 3M recognizes revenue at the invoice amount when the entity has a right to invoice a customer at an amount that corresponds directly with the value to the customer of the Company’s performance completed to date. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using 3M’s best estimate of the standalone selling price of each distinct good or service in the contract. The Company did not recognize any material revenue in the current reporting period for performance obligations that were fully satisfied in previous periods. The Company does not have material unfulfilled performance obligation balances for contracts with an original length greater than one year in any years presented. Additionally, the Company does not have material costs related to obtaining a contract with amortization periods greater than one year for any year presented. 3M applies ASC 606 utilizing the following allowable exemptions or practical expedients: ● Exemption to not disclose the unfulfilled performance obligation balance for contracts with an original length of one year or less. ● Practical expedient relative to costs of obtaining a contract by expensing sales commissions when incurred because the amortization period would have been one year or less. ● Portfolio approach practical expedient relative to estimation of variable consideration. ● “Right to invoice” practical expedient based on 3M’s right to invoice the customer at an amount that reasonably represents the value to the customer of 3M’s performance completed to date. ● Election to present revenue net of sales taxes and other similar taxes. ● Sales-based royalty exemption permitting future intellectual property out-licensing royalty payments to be excluded from the otherwise required remaining performance obligations disclosure The Company recognizes revenue from the rental of durable medical devices in accordance with the guidance of ASC 842, Leases Accounts receivable and allowances: allowances for bad debts as well as the provision for credit losses, write-off activity and recoveries for the periods presented are not material. The Company does not have any significant off-balance-sheet credit exposure related to its customers. The Company has long-term customer receivables that do not have significant credit risk, and the origination dates of which are typically not older than five years. These long-term receivables are subject to an allowance methodology similar to other receivables. Advertising and merchandising: Research, development and related expenses: Internal-use software: three Environmental: Income taxes: Income Taxes Earnings per share: Earnings Per Share Computations (Amounts in millions, except per share amounts) 2020 2019 2018 Numerator: Net income attributable to 3M $ 5,384 $ 4,570 $ 5,349 Denominator: Denominator for weighted average 3M common shares outstanding – 577.6 577.0 588.5 Dilution associated with the Company’s stock-based compensation plans 4.6 8.1 13.5 Denominator for weighted average 3M common shares outstanding – 582.2 585.1 602.0 Earnings per share attributable to 3M common shareholders – $ 9.32 $ 7.92 $ 9.09 Earnings per share attributable to 3M common shareholders – $ 9.25 $ 7.81 $ 8.89 Stock-based compensation: Comprehensive income: Derivatives and hedging activities: Derivatives and Hedging Credit risk: Fair value measurements: Fair Value Measurements and Disclosures amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The standard also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Acquisitions: Business Combinations Leases: After adoption of ASU 2016-02 and related standards in 2019, operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is 3M’s incremental borrowing rate or, if available, the rate implicit in the lease. 3M determines the incremental borrowing rate for leases using a portfolio approach based primarily on the lease term and the economic environment of the applicable country or region. As a lessee, the Company leases distribution centers, office space, land, and equipment. Certain 3M lease agreements include rental payments adjusted annually based on changes in an inflation index. 3M’s leases do not contain material residual value guarantees or material restrictive covenants. Lease expense is recognized on a straight-line basis over the lease term. Certain leases include one or more extend lease term For the measurement and classification of its lease agreements, 3M groups lease and non-lease components into a single lease component for all underlying asset classes. Variable lease payments primarily include payments for non-lease components, such as maintenance costs, payments for leased assets used beyond their noncancelable lease term as adjusted for contractual options to terminate or renew, and payments for non-components such as sales tax. Certain 3M leases contain immaterial variable lease payments based on number of units produced. New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). In January 2020, the FASB issued ASU No. 2020-01, Clarifying the Interactions between Topic 321, Investments—Equity Securities, Topic 323, Investments—Equity Method and Joint Ventures, and Topic 815, Derivatives and Hedging In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Scope its debt securities, bank facilities, and derivative instruments and continues to evaluate commercial contracts that may utilize LIBOR as the reference rate. 3M will continue its assessment and monitor regulatory developments during the LIBOR transition period. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue | |
Revenue | NOTE 2. Revenue Contract Balances: Deferred revenue primarily relates to revenue that is recognized over time for one-year software license contracts. Refer to Note 7 for deferred revenue balances at December 31, 2019 and 2020. Approximately $410 million of the December 31, 2019 balance was recognized as revenue during the year ended December 31, 2020, while approximately $600 million of the December 31, 2018 balance was recognized as revenue during the year ended December 31, 2019. 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 $586 million for the year ended December 31, 2020. Applicable rental revenue for the years ended December 31, 2019 and 2018 was not material. Disaggregated revenue information: The Company views the following disaggregated disclosures as useful to understanding the composition of revenue recognized during the respective reporting periods: Year ended December 31, Net Sales (Millions) 2020 2019 2018 Abrasives $ 1,180 $ 1,387 $ 1,512 Automotive Aftermarket 1,102 1,229 1,356 Closure and Masking Systems 993 1,111 1,224 Communication Markets — — 175 Electrical Markets 1,121 1,200 1,244 Industrial Adhesives and Tapes 2,562 2,689 2,841 Personal Safety 4,433 3,504 3,601 Roofing Granules 390 366 353 Other Safety and Industrial (14) 28 108 Total Safety and Industrial Business Segment $ 11,767 $ 11,514 $ 12,414 Advanced Materials $ 1,036 $ 1,245 $ 1,236 Automotive and Aerospace 1,612 1,913 2,074 Commercial Solutions 1,529 1,785 1,863 Electronics 3,767 3,711 3,971 Transportation Safety 890 943 951 Other Transportation and Electronics (7) (6) 9 Total Transportation and Electronics Business Segment $ 8,827 $ 9,591 $ 10,104 Drug Delivery $ 146 $ 372 $ 407 Food Safety 342 341 328 Health Information Systems 1,140 1,177 837 Medical Solutions 4,787 3,439 3,073 Oral Care 1,076 1,321 1,353 Separation and Purification Sciences 853 791 817 Other Health Care 1 (10) 6 Total Health Care Business Group $ 8,345 $ 7,431 $ 6,821 Consumer Health Care $ 366 $ 379 $ 389 Home Care 1,066 991 1,013 Home Improvement 2,527 2,297 2,216 Stationery and Office 1,223 1,378 1,399 Other Consumer 154 106 110 Total Consumer Business Group $ 5,336 $ 5,151 $ 5,127 Corporate and Unallocated $ (1) $ 110 $ 50 Elimination of Dual Credit (2,090) (1,661) (1,751) Total Company $ 32,184 $ 32,136 $ 32,765 Year ended December 31, 2020 Net Sales (Millions) Americas Asia Pacific Europe, Middle East and Africa Other Unallocated Worldwide Safety and Industrial $ 6,177 $ 2,805 $ 2,791 $ (6) $ 11,767 Transportation and Electronics 2,455 5,097 1,282 (7) 8,827 Health Care 5,062 1,478 1,809 (4) 8,345 Consumer 3,832 939 567 (2) 5,336 Corporate and Unallocated (1) — — — (1) Elimination of Dual Credit (1,000) (750) (340) — (2,090) Total Company $ 16,525 $ 9,569 $ 6,109 $ (19) $ 32,184 Year ended December 31, 2019 Net Sales (Millions) Americas Asia Pacific Europe, Middle East and Africa Other Unallocated Worldwide Safety and Industrial $ 6,008 $ 2,844 $ 2,666 $ (4) $ 11,514 Transportation and Electronics 2,901 5,221 1,472 (3) 9,591 Health Care 4,200 1,490 1,743 (2) 7,431 Consumer 3,641 952 559 (1) 5,151 Corporate and Unallocated 109 — 1 — 110 Elimination of Dual Credit (735) (711) (215) — (1,661) Total Company $ 16,124 $ 9,796 $ 6,226 $ (10) $ 32,136 Year ended December 31, 2018 Net Sales (Millions) Americas Asia Pacific Europe, Middle East and Africa Other Unallocated Worldwide Safety and Industrial $ 6,345 $ 3,076 $ 2,996 $ (3) $ 12,414 Transportation and Electronics 3,015 5,513 1,577 (1) 10,104 Health Care 3,636 1,453 1,733 (1) 6,821 Consumer 3,562 980 586 (1) 5,127 Corporate and Unallocated 51 — — (1) 50 Elimination of Dual Credit (745) (768) (238) — (1,751) Total Company $ 15,864 $ 10,254 $ 6,654 $ (7) $ 32,765 Americas included United States net sales to customers of $13.9 billion, $13.2 billion and $12.8 billion in 2020, 2019 and 2018, respectively. Asia Pacific included China/Hong Kong net sales to customers of $3.5 billion, $3.3 billion and $3.6 billion in 2020, 2019, and 2018, respectively. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions and Divestitures | |
Acquisitions and Divestitures | NOTE 3. 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. 2020 acquisitions: There were no acquisitions that closed during the year ended December 31, 2020. 2019 acquisitions: In February 2019, 3M completed the acquisition of the technology business of M*Modal for $0.7 billion of cash, net of cash acquired, and assumption of $0.3 billion of M*Modal’s debt. Based in Pittsburgh, Pennsylvania, M*Modal is a leading healthcare technology provider of cloud-based, conversational artificial intelligence-powered systems that help physicians efficiently capture and improve the patient narrative. The allocation of purchase consideration related to M*Modal was completed in the fourth quarter of 2019. Net sales and operating loss (inclusive of transaction and integration costs) of this business included in 3M’s consolidated results of operations in 2019 were approximately $300 million and $25 million, respectively. M*Modal is reported within the Company’s Health Care business. In October 2019, the Company completed the acquisition of all of the ownership interests of Acelity Inc. and its KCI subsidiaries. Acelity is a leading global medical technology company focused on advanced wound care and specialty surgical applications marketed under the KCI brand. In the first quarter of 2020, the Company paid certain considerations previously accrued under the terms of related agreements. Adjustments in 2020 to the purchase price allocation were approximately $34 million and related to identification and valuation of certain acquired assets and liabilities. The change to provisional amounts did not result in material impacts to results of operations in 2020 or any portion related to earlier quarters in the measurement period. The allocation of purchase consideration related to Acelity was completed in the third quarter of 2020. Net sales and operating loss (inclusive of transaction and integration costs) of this business included in 3M’s consolidated results of operations in the fourth quarter of 2019 were approximately $350 million and $45 million, respectively. Acelity is reported within the Company’s Health Care business. Proforma information related to these acquisitions has not been included as the impact on the Company’s consolidated results of operations was not considered material. The following table shows the impact on the consolidated balance sheet of the purchase price allocations related to the 2019 acquisitions and assigned finite-lived asset weighted average lives. 2019 Acquisition Activity Finite-Lived Intangible-Asset (Millions) Weighted-Average Asset (Liability) M*Modal Acelity Total Lives (Years) Accounts receivable $ 75 $ 295 $ 370 Inventory — 186 186 Other current assets 2 65 67 Property, plant, and equipment 8 147 155 Purchased finite-lived intangible assets: Customer related intangible assets 275 1,760 2,035 18 Other technology-based intangible assets 160 1,390 1,550 10 Definite-lived tradenames 11 485 496 16 Purchased goodwill 517 2,952 3,469 Other assets 58 73 131 Accounts payable and other liabilities (127) (438) (565) Interest bearing debt (251) (2,322) (2,573) Deferred tax asset/(liability) and accrued income taxes (24) (288) (312) Net assets acquired $ 704 $ 4,305 $ 5,009 Supplemental information: Cash paid $ 708 $ 4,486 $ 5,194 Less: Cash acquired 4 206 210 Cash paid, net of cash acquired $ 704 $ 4,280 $ 4,984 Consideration payable — 25 25 $ 704 $ 4,305 $ 5,009 Purchased identifiable finite-lived intangible assets related to acquisitions which closed in 2019 totaled $4.081 billion. The associated finite-lived intangible assets acquired will be amortized on a systematic and rational basis (generally straight line) over a weighted-average life of 14 years (lives ranging from 6 to 19 years ). 2018 acquisition: There were no acquisitions that closed during 2018. Divestitures: 3M may divest certain businesses from time to time based upon review of the Company’s portfolio considering, among other items, factors relative to the extent of strategic and technological alignment and optimization of capital deployment, in addition to considering if selling the businesses results in the greatest value creation for the Company and for shareholders. As discussed in Note 19 (Business Segments), gains/losses on sale of businesses are reflected in Corporate and Unallocated. 2020 divestitures: In January 2020, 3M completed the sale of its advanced ballistic-protection business, formerly part of the Transportation and Electronics business, to Avon Rubber p.l.c for $86 million in cash and recognized certain contingent consideration from the outcome of pending tenders. Further contingent consideration of less than $25 million may be recognized depending on outcomes in the future. The business, with annual sales of approximately $85 million, consists of ballistic helmets, body armor, flat armor and related helmet-attachment products serving government and law enforcement. 3M reflected immaterial impacts in the third quarter of 2019 as a result of measuring this disposal group at the lower of its carrying amount or fair value less cost to sell and in the first quarter 2020 related to completion of the divestiture and recognition of contingent consideration. In May 2020, 3M completed the sale of substantially all of its drug delivery business, formerly part of the Health Care business, to an affiliate of Altaris Capital Partners, LLC for $617 million in consideration including $487 million of cash, approximately $70 million in the form of an interest-bearing security, and approximately $60 million in the form of a 17 percent noncontrolling interest in the new company, Kindeva Drug Delivery (Kindeva). Non-cash consideration was valued at time of initial recognition on an income-based approach using relevant estimated future cash flows and applicable market interest rates while considering impacts of restrictions related to transferability. The divested business had annual sales of approximately $380 million. 3M retained its transdermal drug delivery components business. 3M reflected a pre-tax gain of $387 million as a result of the divestiture. The Company reflects its ownership interest in Kindeva using the equity method of accounting incorporating the recording of 3M’s share of earnings/losses on a lag-basis based on availability of Kindeva financial statements. As a result, income/loss from this unconsolidated subsidiary began to be reflected in 3M’s financial statements in the third quarter of 2020. Kindeva and 3M entered into certain limited-term agreements related to post-divestiture transition and supply services. In the third quarter of 2020, 3M completed the sale of a small dermatology products business, formerly part of the Health Care business, for immaterial proceeds that approximated the business’s book value. 2019 divestitures: During the first quarter of 2019, the Company sold certain oral care technology comprising a business and reflected an earnout on a previous divestiture resulting in an aggregate immaterial gain. In August 2019, 3M closed on the sale of its gas and flame detection business, a leader in fixed and portable gas and flame detection, to Teledyne Technologies Incorporated. 3M’s gas and flame business was part of the overall October 2017 acquisition of underlying legal entities and associated assets of Scott Safety. This business has annual sales of approximately $120 million. The transaction resulted in a pre-tax gain of $112 million that was reported within the Company’s Safety and Industrial business. 2018 divestitures: In February 2018, 3M closed on the sale of certain personal safety product offerings primarily focused on noise, environmental, and heat stress monitoring to TSI, Inc. This business has annual sales of approximately $15 million. The transaction resulted in a pre-tax gain of less than $20 million. In addition, during the first quarter of 2018, 3M divested a polymer additives compounding business, formerly part of the Company’s Health Care business, and reflected a gain on final closing adjustments from a prior divestiture which, in aggregate, were not material. In May 2018, 3M divested an abrasives glass products business, formerly part of the Company’s Safety and Industrial business, with annual sales of approximately $10 million. The transaction resulted in a pre-tax gain of less than $15 million. Operating income and held for sale amounts The aggregate operating income of these businesses was approximately $40 million, $40 million, and $85 million in 2020, 2019, and 2018, respectively. The approximate amounts of major assets and liabilities associated with disposal groups classified as held-for-sale as of December 31, 2019 included the following: December 31, (Millions) 2019 Inventory $ 70 Property, plant and equipment 150 Intangible assets 35 In addition, approximately $30 million of goodwill was estimated to be attributable to disposal groups classified as held-for-sale as of December 31, 2019, based upon relative fair value. The amounts above have not been segregated and are classified within the existing corresponding line items on the Company’s consolidated balance sheet. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | NOTE 4. Goodwill and Intangible Asset s Goodwill There was no goodwill recorded from acquisitions during 2020. Goodwill from acquisitions total $3.5 billion in 2019, none of which was deductible for tax purposes. The acquisition activity in the following table also includes the net impact of adjustments to the preliminary allocation of purchase price within the one year measurement-period following prior acquisitions, which decreased goodwill by $34 million during 2020. The amounts in the “Translation and other” column in the following table primarily relate to changes in foreign currency exchange rates. The goodwill balance by business segment follows: (Millions) Safety and Industrial Transportation and Electronics Health Care Consumer Total Company Balance as of December 31, 2018 $ 4,716 $ 1,857 $ 3,248 $ 230 $ 10,051 Acquisition activity — — 3,469 — 3,469 Divestiture activity (49) — — — (49) Translation and other (46) (27) 22 24 (27) Balance as of December 31, 2019 $ 4,621 $ 1,830 $ 6,739 $ 254 $ 13,444 Acquisition activity — — (34) — (34) Divestiture activity — (10) (19) — (29) Translation and other 66 38 306 11 421 Balance as of December 31, 2020 $ 4,687 $ 1,858 $ 6,992 $ 265 $ 13,802 Accounting standards require that goodwill be tested for impairment annually and between annual tests in certain circumstances such as a change in reporting units or the testing of recoverability of a significant asset group within a reporting unit. At 3M, reporting units correspond to a division. As described in Note 19, effective in the first quarter of 2020, the Company changed its business segment reporting. For any product changes that resulted in reporting unit changes, the Company applied the relative fair value method to determine the impact on goodwill of the associated reporting units, the results of which were immaterial. In conjunction with the change in segment reporting, 3M completed an assessment indicating no goodwill impairment existed as a result of this new segment structure. Goodwill balances reported above reflect these business segment reporting changes in the earliest period presented. The Company also completed its annual goodwill impairment test in the fourth quarter of 2020 for all reporting units and determined that no impairment existed. In addition, the Company had no impairments of goodwill in 2019 or 2018. 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, as of December 31, follow: December 31, December 31, (Millions) 2020 2019 Customer related intangible assets $ 4,280 $ 4,316 Patents 537 538 Other technology-based intangible assets 2,114 2,124 Definite-lived tradenames 1,178 1,158 Other amortizable intangible assets 104 125 Total gross carrying amount $ 8,213 $ 8,261 Accumulated amortization — customer related (1,422) (1,180) Accumulated amortization — patents (512) (499) Accumulated amortization — other technology-based (638) (435) Accumulated amortization — definite-lived tradenames (385) (316) Accumulated amortization — other (79) (90) Total accumulated amortization $ (3,036) $ (2,520) Total finite-lived intangible assets — net $ 5,177 $ 5,741 Non-amortizable intangible assets (primarily tradenames) 658 638 Total intangible assets — net $ 5,835 $ 6,379 Certain tradenames acquired by 3M are not amortized because they have been in existence for over 60 years, have a history of leading-market share positions, have been and are intended to be continuously renewed, and the associated products of which are expected to generate cash flows for 3M for an indefinite period of time. As discussed in Note 15, 3M reflected an immaterial charge related to impairment of certain indefinite-lived assets in the first quarter of 2020. Amortization expense for the years ended December 31 follows: (Millions) 2020 2019 2018 Amortization expense $ 537 $ 341 $ 249 Expected amortization expense for acquired amortizable intangible assets recorded as of December 31, 2020 follows: After (Millions) 2021 2022 2023 2024 2025 2025 Amortization expense $ 528 $ 515 $ 488 $ 459 $ 428 $ 2,759 The preceding expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, changes in foreign currency exchange rates, impairment of intangible assets, accelerated amortization of intangible assets and other events. 3M expenses the costs incurred to renew or extend the term of intangible assets. |
Restructuring Actions
Restructuring Actions | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring Actions | |
Restructuring Actions | NOTE 5. Restructuring Actions 2020 Restructuring Actions: Operational/Marketing Capability Restructuring: In late 2020, 3M announced it would undertake certain actions 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. During the fourth quarter of 2020, management approved and committed to undertake associated restructuring actions impacting approximately 2,100 positions resulting in a pre-tax charge of $137 million. 3M is planning further actions under this initiative primarily in the second half of 2021. This aggregate initiative, spanning 2020 and 2021, is expected to impact approximately 2,900 positions worldwide with an expected pre-tax charge of $250 to $300 million. The related 2020 restructuring charges were recorded in the income statement as follows: (Millions) Fourth Quarter 2020 Cost of sales $ 51 Selling, general and administrative expenses 79 Research, development and related expenses 7 Total operating income impact $ 137 The business segment operating income impact of these restructuring charges is summarized as follows: Fourth Quarter 2020 (Millions) Employee-Related Asset-Related and Other Total Safety and Industrial $ 36 $ 7 $ 43 Transportation and Electronics 16 12 28 Health Care 23 3 26 Consumer 10 1 11 Corporate and Unallocated 16 13 29 Total Operating Expense $ 101 $ 36 $ 137 Restructuring actions, including cash and non-cash impacts, follow: (Millions) Employee-Related Asset-Related and Other Total Expense incurred in the fourth quarter of 2020 $ 101 $ 36 $ 137 Non-cash changes — (36) (36) Accrued restructuring action balances as of December 31, 2020 $ 101 $ — $ 101 Remaining activities related to this restructuring actions approved and committed under this initiative in the 2020 are expected to be largely completed through 2021. Divestiture-Related Restructuring During the second quarter of 2020, following the divestiture of substantially all of the drug delivery business (see Note 3) management approved and committed to undertake certain restructuring actions addressing corporate functional costs and manufacturing footprint across 3M in relation to the magnitude of amounts previously allocated/burdened to the divested business. These actions affected approximately 1,300 positions worldwide and resulted in a second quarter 2020 pre-tax charge of $55 million, within Corporate and Unallocated. The divestiture-related restructuring actions were recorded in the income statement as follows: (Millions) Second Quarter 2020 Cost of sales $ 42 Selling, general and administrative expenses 12 Research, development and related expenses 1 Total operating income impact $ 55 Divestiture-related restructuring actions, including cash and non-cash impacts, follow: (Millions) Employee-Related Asset-Related and Other Total Expense incurred in the second quarter of 2020 $ 32 $ 23 $ 55 Non-cash changes — (14) (14) Cash payments (14) — (14) Adjustments (3) — (3) Accrued divestiture-related restructuring action balances as of December 31, 2020 $ 15 $ 9 $ 24 Remaining activities related to this divestiture-related restructuring are expected to be largely completed through the second quarter of 2021. Other Restructuring Additionally, in the second quarter of 2020, management approved and committed to undertake certain restructuring actions addressing structural enterprise costs and operations in certain end markets as a result of the COVID-19 pandemic and related economic impacts. These actions affected approximately 400 positions worldwide and resulted in a second quarter 2020 pre-tax charge of $58 million. The restructuring charges were recorded in the income statement as follows: (Millions) Second Quarter 2020 Cost of sales $ 13 Selling, general and administrative expenses 37 Research, development and related expenses 8 Total operating income impact $ 58 The business segment operating income impact of these restructuring charges is summarized as follows: Second Quarter 2020 ( Millions Employee-Related Asset-Related and Other Total Safety and Industrial $ 7 $ — $ 7 Transportation and Electronics 11 — 11 Health Care 12 — 12 Consumer 5 — 5 Corporate and Unallocated — 23 23 Total Operating Expense $ 35 $ 23 $ 58 Restructuring actions, including cash and non-cash impacts, follow: (Millions) Employee-Related Asset-Related Total Expense incurred in the second quarter of 2020 $ 35 $ 23 $ 58 Non-cash changes — (23) (23) Cash payments (2) — (2) Adjustments (9) — (9) Accrued restructuring action balances as of December 31, 2020 $ 24 $ — $ 24 Remaining activities related to this restructuring are expected to be largely completed through the second quarter of 2021. 2019 Restructuring Actions: During the second quarter of 2019, in light of slower than expected 2019 sales, management approved and committed to undertake certain restructuring actions. These actions impacted approximately 2,000 positions worldwide, including attrition. The Company recorded second quarter 2019 pre-tax charges of $148 million. Additionally, during the fourth quarter of 2019, to realign 3M’s organizational structure and operating model to improve growth and operational efficiency, management approved and committed to undertake certain restructuring actions. These actions impacted approximately 1,500 positions worldwide. The Company recorded fourth quarter 2019 pre-tax charges of $134 million. These restructuring charges were recorded in the income statement as follows: ( Millions Second and Fourth Quarter 2019 Cost of sales $ 72 Selling, general and administrative expenses 137 Research, development and related expenses 37 Total operating income impact 246 Other expense (income), net 36 Total income before income taxes impact $ 282 The second quarter 2019 actions included a voluntary early retirement incentive initial charge (further discussed in Note 13), the charge for which is included in other expense (income), net above. The operating income impact of these restructuring charges are summarized by business segment as follows: Second and Fourth Quarter 2019 ( Millions Employee-Related Asset-Related Total Safety and Industrial $ 50 $ — $ 50 Transportation and Electronics 31 — 31 Health Care 17 — 17 Consumer 8 — 8 Corporate and Unallocated 100 40 140 Total Operating Expense $ 206 $ 40 $ 246 Restructuring actions, including cash and non-cash impacts, follow: (Millions) Employee-Related Asset-Related Total Expense incurred in the second quarter and fourth quarter of 2019 $ 242 $ 40 $ 282 Non-cash changes (36) (40) (76) Cash payments (52) — (52) Adjustments (14) — (14) Accrued restructuring action balances as of December 31, 2019 $ 140 $ — $ 140 Cash Payments (51) — (51) Adjustments (59) — (59) Accrued restructuring action balances as of December 31, 2020 $ 30 $ — $ 30 Adjustments in the table above reflect changes in estimates from factors such as additional natural attrition and redeployment as COVID-19 delayed the start of plan execution and update of costs associated with the mix of impacted roles. Remaining activities related to this restructuring are expected to be completed largely through early 2021. 2018 Restructuring Actions: Divestiture-Related Restructuring During the second quarter and fourth quarter of 2018, management approved and committed to undertake certain restructuring actions related to addressing corporate functional costs following the Communication Markets Division divestiture. These actions affected approximately 1,200 positions worldwide and resulted in a second quarter 2018 pre-tax charge of $105 million and a fourth quarter pre-tax charge of $22 million, net of adjustments for reductions in cost estimates of $10 million, essentially all within Corporate and Unallocated. The restructuring charges were recorded in the income statement as follows: (Millions) Second and Fourth Quarter 2018 Cost of sales $ 27 Selling, general and administrative expenses 105 Research, development and related expenses 5 Total $ 137 Restructuring actions, including cash and non-cash impacts, follow: (Millions) Employee-Related Asset-Related Total Expense incurred in the second quarter and fourth quarter of 2018 $ 125 $ 12 $ 137 Non-cash changes — (12) (12) Cash payments (24) — (24) Adjustments (17) — (17) Accrued restructuring action balances as of December 31, 2018 $ 84 $ — $ 84 Cash payments (76) — (76) Adjustments (5) — (5) Accrued restructuring action balances as of December 31, 2019 $ 3 $ — $ 3 Remaining activities related to this restructuring were substantially completed in 2019. |
Supplemental Income Statement I
Supplemental Income Statement Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Income Statement Information | |
Supplemental Income Statement Information | NOTE 6. Supplemental Income Statement Information Other expense (income), net consists of the following: (Millions) 2020 2019 2018 Interest expense $ 529 $ 448 $ 350 Interest income (29) (80) (70) Pension and postretirement net periodic benefit cost (benefit) (50) (68) (73) Loss on deconsolidation of Venezuelan subsidiary — 162 — Total $ 450 $ 462 $ 207 Interest expense includes an early debt extinguishment pre-tax charge of approximately $10 million in the fourth quarter of 2020. 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. Pension and postretirement net periodic benefit costs for 2019 included a second quarter charge related to the voluntary early retirement incentive program announced in May 2019 in addition to U.S. non-qualified pension plan settlement charges of $32 million recognized in the fourth quarter of 2019. Refer to Note 13 for additional details on the voluntary early retirement incentive program in addition to the components of pension and postretirement net periodic benefit costs. In the second quarter of 2019, the Company incurred a charge of $162 million related to the deconsolidation of its Venezuelan subsidiary. Refer to Note 1 for additional details. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Balance Sheet Information | |
Supplemental Balance Sheet Information | NOTE 7. Supplemental Balance Sheet Information Additional supplemental balance sheet information is provided in the table that follows. (Millions) 2020 2019 Other current assets Derivative assets-current $ 34 $ 75 Held-to-maturity debt security held in trust — 470 Insurance related (receivables, prepaid expenses and other) 125 172 Other 166 174 Total other current assets $ 325 $ 891 Property, plant and equipment - at cost Land $ 338 $ 351 Buildings and leasehold improvements 8,021 7,877 Machinery and equipment 16,866 16,586 Construction in progress 1,425 1,310 Gross property, plant and equipment 26,650 26,124 Accumulated depreciation (17,229) (16,791) Property, plant and equipment - net $ 9,421 $ 9,333 Other assets Deferred income taxes $ 871 $ 521 Prepaid pension and post retirement 630 230 Insurance related receivables and other 49 67 Cash surrender value of life insurance policies 258 254 Equity method investments 134 70 Equity and other investments 80 126 Other 418 406 Total other assets $ 2,440 $ 1,674 Other current liabilities Accrued rebates $ 639 $ 594 Deferred revenue 498 430 Derivative liabilities 81 17 Employee benefits and withholdings 192 229 Contingent liability claims and other 556 566 Property, sales-related and other taxes 308 247 Pension and postretirement benefits 71 67 Other 933 906 Total other current liabilities $ 3,278 $ 3,056 Other liabilities Long term income taxes payable $ 1,511 $ 1,507 Employee benefits 410 312 Contingent liability claims and other 815 787 Finance lease obligations 93 111 Deferred income taxes 333 301 Other 300 257 Total other liabilities $ 3,462 $ 3,275 |
Supplemental Equity and Compreh
Supplemental Equity and Comprehensive Income Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Equity and Comprehensive Income Information | |
Supplemental Equity and Comprehensive Income Information | NOTE 8. Supplemental Equity and Comprehensive Income Information Common stock ($.01 par value per share) of 3.0 billion shares is authorized, with 944,033,056 shares issued as of December 31, 2020, 2019 and 2018. Preferred stock, without par value, of 10 million shares is authorized but unissued. Cash dividends declared and paid totaled $1.47, $1.44, and $1.36 per share for each quarter in 2020, 2019 and 2018, respectively, which resulted in total year declared and paid dividends of $5.88, $5.76, and $5.44 per share, respectively. In connection with 3M’s January 1, 2019 adoption of ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, and ASU No. 2016-02, Leases, the Company recorded an increase in retained earnings of approximately $0.9 billion (with offsetting increase to accumulated other comprehensive loss Transfer of Ownership Interest Involving Non-Wholly Owned Subsidiaries During 2018, a wholly owned subsidiary in India was sold to 3M India Limited, which is 75 percent owned by the Company. Because the Company retained its controlling interest in the subsidiary involved, the sale resulted in a deemed dividend to 3M, resulting in an increase in 3M Company shareholders’ equity and a decrease in noncontrolling interest. Refer to the Consolidated Statement of Changes in Equity for further details. Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component Defined Benefit Cash Flow Total Pension and Hedging Accumulated Cumulative Postretirement Instruments, Other Translation Plans Unrealized Comprehensive (Millions) Adjustment Adjustment Gain (Loss) Income (Loss) Balance at December 31, 2017, net of tax: $ (1,638) $ (5,276) $ (112) $ (7,026) Other comprehensive income (loss), before tax: Amounts before reclassifications (414) 55 133 (226) Amounts reclassified out — 606 96 702 Total other comprehensive income (loss), before tax (414) 661 229 476 Tax effect (47) (217) (53) (317) Total other comprehensive income (loss), net of tax (461) 444 176 159 Impact from purchase of subsidiary shares 1 — — 1 Balance at December 31, 2018, net of tax: $ (2,098) $ (4,832) $ 64 $ (6,866) Impact of adoption of ASU No. 2018-02 (13) (817) (23) (853) Other comprehensive income (loss), before tax: Amounts before reclassifications 102 (1,227) (26) (1,151) Amounts reclassified out 142 459 (70) 531 Total other comprehensive income (loss), before tax 244 (768) (96) (620) Tax effect (32) 208 24 200 Total other comprehensive income (loss), net of tax 212 (560) (72) (420) Balance at December 31, 2019, net of tax: $ (1,899) $ (6,209) $ (31) $ (8,139) Other comprehensive income (loss), before tax: Amounts before reclassifications 387 (555) (113) (281) Amounts reclassified out — 676 (71) 605 Total other comprehensive income (loss), before tax 387 121 (184) 324 Tax effect 62 50 42 154 Total other comprehensive income (loss), net of tax 449 171 (142) 478 Balance at December 31, 2020, net of tax: $ (1,450) $ (6,038) $ (173) $ (7,661) Income taxes are not provided for foreign translation relating to permanent investments in international subsidiaries, but tax effects within cumulative translation does include impacts from items such as net investment hedge transactions. Reclassification adjustments are made to avoid double counting in comprehensive income items that are subsequently recorded as part of net income. Reclassifications out of Accumulated Other Comprehensive Income Attributable to 3M Amounts Reclassified from Details about Accumulated Other Accumulated Other Comprehensive Income Comprehensive Income Components Year ended December 31, Location on Income (Millions) 2020 2019 2018 Statement Cumulative translation adjustment Deconsolidation of Venezuelan subsidiary $ — $ (142) $ — Other (expense) income, net Total before tax — (142) — Tax effect — — — Provision for income taxes Net of tax $ — $ (142) $ — Defined benefit pension and postretirement plans adjustments Gains (losses) associated with defined benefit pension and postretirement plans amortization Transition asset $ (2) $ — $ — See Note 13 Prior service benefit 62 69 76 See Note 13 Net actuarial loss (716) (478) (678) See Note 13 Curtailments/Settlements (20) (48) (4) See Note 13 Deconsolidation of Venezuelan subsidiary — (2) — Other (expense) income, net Total before tax (676) (459) (606) Tax effect 161 110 145 Provision for income taxes Net of tax $ (515) $ (349) $ (461) Cash flow hedging instruments gains (losses) Foreign currency forward/option contracts $ 80 $ 74 $ (95) Cost of sales Interest rate contracts (9) (4) (1) Interest expense Total before tax 71 70 (96) Tax effect (17) (17) 19 Provision for income taxes Net of tax $ 54 $ 53 $ (77) Total reclassifications for the period, net of tax $ (461) $ (438) $ (538) |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements | |
Supplemental Cash Flow Information | NOTE 9. Supplemental Cash Flow Information (Millions) 2020 2019 2018 Cash income tax payments, net of refunds $ 1,351 $ 1,198 $ 1,560 Cash interest payments 524 370 314 Cash interest payments include interest paid on debt and finance lease balances. Cash interest payments exclude the cash paid for early debt extinguishment costs. Additional details are described in Note 12. Individual amounts in the Consolidated Statement of Cash Flows exclude the impacts of acquisitions, divestitures and exchange rate impacts, which are presented separately. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes. | |
Income Taxes | NOTE 10. Income Taxes Income Before Income Taxes (Millions) 2020 2019 2018 United States $ 3,720 $ 3,008 $ 3,487 International 2,991 2,704 3,513 Total $ 6,711 $ 5,712 $ 7,000 Provision for Income Taxes (Millions) 2020 2019 2018 Currently payable Federal $ 720 $ 534 $ 698 State 123 59 109 International 633 673 763 Tax Cuts and Jobs Act (TCJA) non-current transition tax provision — — 176 Deferred Federal (59) (32) (38) State (20) (26) (17) International (79) (78) (54) Total $ 1,318 $ 1,130 $ 1,637 Components of Deferred Tax Assets and Liabilities (Millions) 2020 2019 Deferred tax assets: Accruals not currently deductible Employee benefit costs $ 232 $ 169 Product and other claims 338 280 Miscellaneous accruals 153 119 Pension costs 849 824 Stock-based compensation 231 218 Net operating/capital loss/tax credit carryforwards 148 150 Foreign tax credits 100 66 Currency translation 90 — Inventory 54 70 Other 112 113 Gross deferred tax assets 2,307 2,009 Valuation allowance (135) (158) Total deferred tax assets $ 2,172 $ 1,851 Deferred tax liabilities: Product and other insurance receivables $ (4) $ — Accelerated depreciation (607) (580) Intangible amortization (1,023) (1,021) Currency translation — (30) Other — — Total deferred tax liabilities $ (1,634) $ (1,631) Net deferred tax assets $ 538 $ 220 The net deferred tax assets are included as components of Other Assets and Other Liabilities within the Consolidated Balance Sheet. See Note 7 “Supplemental Balance Sheet Information” for further details. As of December 31, 2020, the Company had tax effected operating losses, capital losses, and tax credit carryovers for federal (approximately $108 million), state (approximately $84 million), and international (approximately $58 million), with all amounts before limitation impacts and valuation allowances. Federal tax attribute carryovers will expire after one one Reconciliation of Effective Income Tax Rate 2020 2019 2018 Statutory U.S. tax rate 21.0 % 21.0 % 21.0 % State income taxes - net of federal benefit 1.2 0.5 1.0 International income taxes - net (1.2) 0.2 0.2 Global Intangible Low Taxed Income (GILTI) 0.8 1.8 1.1 Foreign Derived Intangible Income (FDII) (1.8) (2.9) (1.3) U.S. TCJA enactment - net impacts — — 2.5 U.S. research and development credit (1.0) (1.7) (1.5) Reserves for tax contingencies 0.5 2.3 1.2 Employee share-based payments (0.5) (1.3) (1.4) All other - net 0.6 (0.1) 0.6 Effective worldwide tax rate 19.6 % 19.8 % 23.4 % The effective tax rate for 2020 was 19.6 percent, compared to 19.8 percent in 2019, a decrease of 0.2 percentage points, impacted by several factors. Primary factors that decreased the effective tax rate for 2020 included geographical income mix and adjustments to uncertain tax positions. These decreases were partially offset by decreased benefit from stock options. The effective tax rate for 2019 was 19.8 percent, compared to 23.4 percent in 2018, a decrease of 3.6 percentage points, impacted by several factors. Primary factors that decreased the effective tax rate for 2020 included prior year measurement period adjustments related to 2017 Tax Cuts and Jobs Act (TCJA), prior year resolution of the NRD lawsuit (as described in Note 16), and geographical income mix. These decreases were partially offset by the deconsolidation of the Venezuelan subsidiary, adjustments to uncertain tax positions, and significant litigation-related charges. The TCJA was enacted in December 2017, after which the SEC staff issued Staff Accounting Bulletin (SAB) 118, which provided a measurement period of up to one year from the TCJA’s enactment date for companies to complete their accounting under ASC 740. In connection with the enactment of the TCJA, the Company recorded net charges of $176 million as measurement period adjustments in 2018, which are comprised of both a transition tax in addition to a remeasurement of deferred tax assets/liabilities and other impacts. The TCJA’s transition tax is payable over eight years beginning in 2018. As of December 31, 2020 and December 31, 2019, 3M reflected $584 million and $653 million, respectively, in long term income taxes payable. As of December 31, 2020 and December 31, 2019, 3M reflected $69 million and $33 million, respectively, payable within one year associated with the transition tax. The IRS has completed its field examination of the Company’s U.S. federal income tax returns for 2005 through 2016, but the years have not closed as the Company is in the process of resolving issues identified during those examinations. The Company is under examination or in appeals for 2017 through 2018. In addition to the U.S. federal examination, there is also audit activity in several U.S. state and foreign jurisdictions where the Company is subject to ongoing tax examinations and governmental assessments, which could be impacted by evolving political environments in those jurisdictions. As of December 31, 2020, no taxing authority proposed significant adjustments to the Company’s tax positions for which the Company is not adequately reserved. It is reasonably possible that the amount of unrecognized tax benefits could significantly change within the next 12 months. The Company has ongoing federal, state and international income tax audits in various jurisdictions and evaluates uncertain tax positions that may be challenged by local tax authorities and not fully sustained. These uncertain tax positions are reviewed on an ongoing basis and adjusted in light of facts and circumstances including progression of tax audits, developments in case law and closing of statutes of limitation. At this time, the Company is not able to estimate the range by which these potential events could impact 3M’s unrecognized tax benefits within the next 12 months. The Company recognizes the amount of tax benefit that has a greater than 50 percent likelihood of being ultimately realized upon settlement. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (UTB) is as follows: Federal, State and Foreign Tax (Millions) 2020 2019 2018 Gross UTB Balance at January 1 $ 1,167 $ 647 $ 530 Additions based on tax positions related to the current year 74 76 129 Additions for tax positions of prior years 106 132 146 Additions related to recent acquisitions — 396 — Reductions for tax positions of prior years (173) (56) (123) Settlements (8) (4) (17) Reductions due to lapse of applicable statute of limitations (53) (24) (18) Gross UTB Balance at December 31 $ 1,113 $ 1,167 $ 647 Net UTB that would impact the effective tax rate at December 31 $ 1,145 $ 1,178 $ 655 The total amount of UTB, if recognized, would affect the effective tax rate by $1,145 million as of December 31, 2020, $1,178 million as of December 31, 2019, and $655 million as of December 31, 2018. The ending net UTB results from adjusting the gross balance for deferred items, interest and penalties, and deductible taxes. The net UTB is included as components of Other Assets, Accrued Income Taxes, and Other Liabilities within the Consolidated Balance Sheet. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in tax expense. The Company recognized in the consolidated statement of income on a gross basis approximately $21 million of expense, $33 million of expense, and $12 million of expense in 2020, 2019, and 2018, respectively. The amount of interest and penalties recognized may be an expense or benefit due to new or remeasured unrecognized tax benefit accruals. At December 31, 2020, and December 31, 2019, accrued interest and penalties in the consolidated balance sheet on a gross basis were $126 million and $102 million, respectively. Included in these interest and penalty amounts are interest and penalties related to tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. As a result of certain employment commitments and capital investments made by 3M, income from certain manufacturing activities in the following countries is subject to reduced tax rates or, in some cases, is exempt from tax for years through the following: China (2022), Switzerland (2023), Singapore (2025), and Brazil (2029). The income tax benefits attributable to the tax status of these subsidiaries are estimated to be $163 million (28 cents per diluted share) in 2020, $127 million (22 cents per diluted share) in 2019, and $227 million (38 cents per diluted share) in 2018. As of December 31, 2020, the Company has approximately $15 billion of undistributed earnings in its foreign subsidiaries. During the third quarter of 2020, 3M determined that approximately $5 billion of these earnings are no longer considered permanently reinvested. The incremental tax cost to repatriate these earnings to the US is immaterial. The Company has not provided deferred taxes on approximately $10 billion of undistributed earnings from non-U.S. subsidiaries as of December 31, 2020 which are indefinitely reinvested in operations. Because of the multiple avenues by which to repatriate the earnings to minimize tax cost, and because a large portion of these earnings are not liquid, it is not practical to determine the income tax liability that would be payable if such earnings were not reinvested indefinitely. In March 2020, in response to the impact of the COVID-19 pandemic in the U.S. and across the globe, the United States Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act. In December 2020, Congress passed a second relief package, Consolidated Appropriations Act, 2021. |
Marketable Securities and Held-
Marketable Securities and Held-to-Maturity Debt Securities | 12 Months Ended |
Dec. 31, 2020 | |
Marketable Securities and Held-to-Maturity Debt Securities | |
Marketable Securities and Held-to-Maturity Debt Securities | NOTE 11. Marketable Securities and Held-to-Maturity Debt Securities Marketable Securities The Company invests in asset-backed securities, certificates of deposit/time deposits, commercial paper, and other securities. The following is a summary of amounts recorded on the Consolidated Balance Sheet for marketable securities (current and non-current). (Millions) December 31, 2020 December 31, 2019 Corporate debt securities $ 7 $ — Commercial paper 237 85 Certificates of deposit/time deposits 31 10 U.S. treasury securities 125 — U.S. municipal securities 4 3 Current marketable securities $ 404 $ 98 U.S. municipal securities $ 30 $ 43 Non-current marketable securities $ 30 $ 43 Total marketable securities $ 434 $ 141 At December 31, 2020 and 2019, gross unrealized, gross realized, and net realized gains and/or losses (pre-tax) were not material. The balance at December 31, 2020, 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) December 31, 2020 Due in one year or less $ 404 Due after one year through five years 15 Due after five years through ten years 15 Total marketable securities $ 434 Held-to-Maturity Debt Securities In connection with the in-substance debt defeasance of the Third Lien Notes described in Note 12, the Company purchased a $0.5 billion U.S. Treasury security in the fourth quarter of 2019 and transferred it to a trust with irrevocable instructions to use the proceeds from its maturity to satisfy the redemption of the Third Lien Notes that occurred in May 2020. At December 31, 2019, this debt security was considered held-to-maturity due to the restrictions in satisfying and discharging the Third Lien Notes, was carried at amortized cost, and was reflected in other current assets on the Company’s consolidated balance sheet. At December 31, 2019, the difference between the amortized cost of the U.S. Treasury security and its fair value was not material. Upon the maturity of the debt security in May 2020, the Company has no held-to-maturity debt securities. |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Debt and Short-Term Borrowings | |
Long-Term Debt and Short-Term Borrowings | NOTE 12. Long-Term Debt and Short-Term Borrowings The following debt tables reflect effective interest rates, which include the impact of interest rate swaps, as of December 31, 2020. If the debt was issued on a combined basis, the debt has been separated to show the impact of the fixed versus floating effective interest rates. Carrying value includes the impact of debt issuance costs and fair value hedging activity. For notes subject to in-substance defeasance, the final maturity reflected below is that associated with the redemption date included in the irrevocable instructions given to the trust. Long-term debt and short-term borrowings as of December 31 consisted of the following: Long-Term Debt (Millions) Currency/ Effective Final Carrying Value Description / 2020 Principal Amount Fixed vs. Floating Interest Rate Maturity Date 2020 2019 Third lien senior secured notes subject to in-substance defeasance (repaid in 2020) USD Fixed — % 2020 $ — $ 463 Medium-term note (repaid in 2020) EUR Floating — % 2020 — 726 Medium-term note (repaid in 2020) USD Floating — % 2020 — 299 Medium-term note (repaid in 2020) USD Floating — % 2020 — 200 Medium-term note (repaid in 2020) USD Fixed — % 2020 — 599 Medium-term note (repaid in 2020) USD Fixed — % 2020 — 199 Medium-term note (repaid in 2020) USD Floating — % 2020 — 204 Eurobond (300 million euros) EUR Floating (0.28) % 2021 374 346 Eurobond (300 million euros) EUR Fixed 1.97 % 2021 367 334 Medium-term note (500 million euros) EUR Fixed 0.45 % 2022 612 557 Medium-term note ($600 million) USD Fixed 2.17 % 2022 598 597 Medium-term note ($450 million) USD Fixed 2.76 % 2022 449 449 Medium-term note (600 million euros) EUR Fixed 1.14 % 2023 731 665 Medium-term note ($650 million) USD Fixed 2.26 % 2023 649 648 Registered note ($500 million) USD Fixed 1.86 % 2023 498 497 Medium-term note ($300 million) USD Floating 0.52 % 2024 299 299 Medium-term note ($300 million) USD Fixed 3.30 % 2024 299 299 Medium-term note ($500 million) USD Fixed 2.98 % 2024 502 503 Medium-term note ($550 million) USD Fixed 3.04 % 2025 548 547 Registered note ($750 million) USD Fixed 2.12 % 2025 744 743 Registered note ($500 million) USD Fixed 2.67 % 2025 498 — Medium-term note (750 million euros) EUR Fixed 1.66 % 2026 908 826 Medium-term note ($650 million) USD Fixed 2.37 % 2026 644 643 Medium-term note ($850 million) USD Fixed 2.95 % 2027 843 842 30-year debenture ($220 million) USD Fixed 6.44 % 2028 225 226 Medium-term note ($600 million) USD Fixed 3.62 % 2028 598 597 Medium-term note ($800 million) USD Fixed 3.38 % 2029 796 796 Registered note ($1 billion) USD Fixed 2.50 % 2029 986 984 Medium-term note (500 million euros) EUR Fixed 1.90 % 2030 604 549 Registered note ($600 million) USD Fixed 3.09 % 2030 595 — Medium-term note (500 million euros) EUR Fixed 1.54 % 2031 608 554 30-year bond ($555 million) USD Fixed 5.73 % 2037 551 551 Floating rate note ($96 million) USD Floating — % 2041 96 96 Medium-term note ($325 million) USD Fixed 4.05 % 2044 315 314 Floating rate note ($55 million) USD Floating — % 2044 53 53 Medium-term note ($500 million) USD Fixed 3.37 % 2046 476 475 Medium-term note ($500 million) USD Fixed 3.68 % 2047 492 492 Medium-term note ($650 million) USD Fixed 4.07 % 2048 637 637 Medium-term note ($500 million) USD Fixed 3.78 % 2048 505 506 Registered note ($1 billion) USD Fixed 3.37 % 2049 969 968 Registered note ($650 million) USD Fixed 3.72 % 2050 642 — Other borrowings Various 0.01 % 2021-2040 72 76 Total long-term debt $ 18,783 $ 19,359 Less: current portion of long-term debt 794 1,841 Long-term debt (excluding current portion) $ 17,989 $ 17,518 Post-Swap Borrowing (Long-Term Debt, Including Current Portion) 2020 2019 Carrying Effective Carrying Effective (Millions) Value Interest Rate Value Interest Rate Fixed-rate debt $ 17,889 2.80 % $ 17,061 3.01 % Floating-rate debt 894 0.06 % 2,298 1.06 % Total long-term debt, including current portion $ 18,783 $ 19,359 Short-Term Borrowings and Current Portion of Long-Term Debt Effective Carrying Value (Millions) Interest Rate 2020 2019 Current portion of long-term debt 0.78 % $ 794 $ 1,841 U.S. dollar commercial paper — % — 150 Japan subsidiary credit facility — % — 632 German subsidiary credit facility — % — 168 Other borrowings 4.83 % 12 4 Total short-term borrowings and current portion of long-term debt $ 806 $ 2,795 Other short-term borrowings primarily consisted of bank borrowings by international subsidiaries. Future Maturities of Long-term Debt Maturities of long-term debt in the table below reflect the impact of put provisions associated with certain debt instruments and are net of the unaccreted debt issue costs such that total maturities equal the carrying value of long-term debt as of December 31, 2020. The maturities of long-term debt for the periods subsequent to December 31, 2020 are as follows (in millions): After 2021 2022 2023 2024 2025 2025 Total $ 794 $ 1,659 $ 1,878 $ 1,100 $ 1,790 $ 11,562 $ 18,783 As a result of put provisions associated with certain debt instruments, long-term debt payments due in 2021 include floating rate notes totaling $53 million (classified as current portion of long-term debt). Credit Facilities In November 2019, 3M amended and restated its existing $3.75 billion five-year revolving credit facility expiring in March 2021 to a $3.0 billion five-year revolving credit facility expiring in November 2024. 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 $4.0 billion. In addition, 3M entered into a $1.25 billion 364-day 364-day Other Credit Facilities Apart from the committed credit facilities described above, in September 2019, 3M entered into a credit facility initially expiring in July 2020 that was further extended to August 2021 in the amount of 80 billion Japanese yen. In November 2019, 3M entered into a credit facility expiring in November 2020 in the amount of 150 million euros. During the third quarter of 2020, the Company paid the outstanding balances and closed these credit facilities. The Company also had an additional $273 million in stand-alone letters of credit and bank guarantees issued and outstanding at December 31, 2020. These instruments are utilized in connection with normal business activities. Long-Term Debt Issuances The principal amounts, interest rates and maturity dates of individual long-term debt issuances can be found in the long-term debt table found at the beginning of this note. In March 2020, 3M issued $1.75 billion aggregate principal amount of fixed rate registered notes. These were comprised of $500 million of 5-year notes due 2025 with a coupon rate of 2.65%, $600 million of 10-year notes due 2030 with a coupon rate of 3.05%, and $650 million of 30-year notes due 2050 with a coupon rate of 3.70%. In February 2019, 3M issued $2.25 billion aggregate principal amount of fixed rate medium-term notes. These were comprised of $450 million of 3-year notes due 2022 with a coupon rate of 2.75%, $500 million of remaining 5-year notes due 2024 with a coupon rate of 3.25%, $800 million of 10-year notes due 2029 with a coupon rate of 3.375%, and $500 million of remaining 29.5-year notes due 2048 with a coupon rate of 4.00%. Issuances of the 5-year and 29.5-year notes were pursuant to a reopening of existing securities issued in September 2018. In August 2019, 3M issued $3.25 billion aggregate principal amount of fixed rate registered notes. These were comprised of $500 million of 3.5-year notes due 2023 with a coupon rate of 1.75%, $750 million of 5.5-year notes due 2025 with a coupon rate of 2.00%, $1.0 billion of 10-year notes due 2029 with a coupon rate of 2.375%, and $1.0 billion of 30-year notes due 2049 with a coupon rate of 3.25%. In September 2018, 3M issued $2.25 billion aggregate principal amount of medium-term notes. These were comprised of $400 million of 3-year fixed rate notes due 2021 with a coupon rate of 3.00%, $300 million of 5.5-year fixed rate notes due 2024 with a coupon rate of 3.25%, $300 million of 5.5-year floating rate notes due 2024 with a rate based on a floating three three Long-Term Debt Maturities and Extinguishments In December 2020, 3M, via make-whole-call offers, repaid $1 billion aggregate principal amount of its outstanding notes. This included $400 million aggregate principal amount of 3.00% notes and $600 million aggregate principal amount of 1.625% notes, both of which were due to mature in 2021. The Company recorded an early debt extinguishment pre-tax charge of approximately $10 million within interest expense. This charge reflected the differential between the carrying value and the amount paid to reacquire the notes and related expenses. In May 2020, 3M repaid the aggregate $445 million principal amount of Third Lien notes subject to the in-substance defeasance noted below and repaid 650 million euros aggregate principal amount of floating-rate medium-term notes that matured. In August 2020, 3M repaid $500 million aggregate principal amount of floating rate medium-term notes that matured. In June 2019, 3M repaid $625 million aggregate principal amount of fixed-rate medium-term notes that matured. In 2019, 3M also assumed approximately $2.6 billion of debt in connection with the acquisitions of Acelity and M*Modal (See Note 3) of which $2.1 billion was immediately redeemed or paid at close. In November and August 2018, respectively, 3M repaid 500 million euros and $450 million aggregate principal amount of floating rate medium-term notes that matured. In-Substance Defeasance In conjunction with the October 2019 acquisition of Acelity (see Note 3), 3M assumed outstanding debt of the business, of which $445 million in principal amount of third lien senior secured notes (Third Lien Notes) maturing in 2021 with a coupon rate of 12.5% was not immediately redeemed at closing. Instead, at closing, 3M satisfied and discharged the Third Lien Notes via an in-substance defeasance, whereby 3M transferred cash equivalents and marketable securities to a trust with irrevocable instructions to redeem the Third Lien Notes on May 1, 2020. The trust assets were restricted from use in 3M’s operations and were only used for the redemption of the Third Lien Notes that occurred in May 2020. These actions, however, did not represent a legal defeasance. Therefore, this debt was included in current portion of long-term debt and the related trust assets were included in current assets on the Company’s consolidated balance sheet as of December 31, 2019. Floating Rate Notes At various times, 3M has issued floating rate notes containing put provisions. 3M would be required to repurchase these securities at various prices ranging from 99 percent to 100 percent of par value according to the reduction schedules for each security. In December 2004, 3M issued a forty-year $60 million floating rate note, with a rate based on a floating LIBOR index. Under the terms of this floating rate note due in 2044, holders have an annual put feature at 100 percent of par value from 2014 and every anniversary thereafter until final maturity. Under the terms of the floating rate notes due in 2027, 2040 and 2041, holders have put options that commence ten years from the date of issuance and each third anniversary thereafter until final maturity at prices ranging from 99 percent to 100 percent of par value. For the periods presented, 3M was required to repurchase an immaterial amount of principal on the aforementioned floating rate notes. |
Pension and Postretirement Bene
Pension and Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Pension and Postretirement Benefit Plans | |
Pension and Postretirement Benefit Plans | NOTE 13. Pension and Postretirement Benefit Plans 3M has company-sponsored retirement plans covering substantially all U.S. employees and many employees outside the United States. In total, 3M has over 75 defined benefit plans in 28 countries. Pension benefits associated with these plans generally are based on each participant’s years of service, compensation, and age at retirement or termination. The primary U.S. defined-benefit pension plan was closed to new participants effective January 1, 2009. The Company also provides certain postretirement health care and life insurance benefits for its U.S. employees who reach retirement age while employed by the Company and were employed by the Company prior to January 1, 2016. Most international employees and retirees are covered by government health care programs. The cost of company-provided postretirement health care plans for international employees is not material and is combined with U.S. amounts in the tables that follow. The Company has made deposits for its defined benefit plans with independent trustees. Trust funds and deposits with insurance companies are maintained to provide pension benefits to plan participants and their beneficiaries. There are no plan assets in the non-qualified plan due to its nature. For its U.S. postretirement health care and life insurance benefit plans, the Company has set aside amounts at least equal to annual benefit payments with an independent trustee. The Company also sponsors employee savings plans under Section 401(k) of the Internal Revenue Code. These plans are offered to substantially all regular U.S. employees. For eligible employees hired prior to January 1, 2009, employee 401(k) contributions of up to 5% of eligible compensation matched in cash at rates of 45% or 60%, depending on the plan in which the employee participates. Employees hired on or after January 1, 2009, receive a cash match of 100% for employee 401(k) contributions of up to 5% of eligible compensation and receive an employer retirement income account cash contribution of 3% of the participant’s total eligible compensation. All contributions are invested in a number of investment funds pursuant to the employees’ elections. Employer contributions to the U.S. defined contribution plans were $201 million, $186 million and $173 million for 2020, 2019 and 2018, respectively. 3M subsidiaries in various international countries also participate in defined contribution plans. Employer contributions to the international defined contribution plans were $103 million, $96 million and $99 million for 2020, 2019 and 2018, respectively. In May 2019 (as part of the 2019 restructuring actions discussed in Note 5), the Company began offering a voluntary early retirement incentive program to certain eligible participants of its U.S. pension plans who meet age and years of pension service requirements. The eligible participants who accepted the offer and retired by July 1, 2019 received an enhanced pension benefit. Pension benefits were enhanced by adding one additional year of pension service and one additional year of age for certain benefit calculations. Approximately 800 participants accepted the offer and retired before July 1, 2019. As a result, the Company incurred a $35 million charge related to these special termination benefits in the second quarter of 2019. In the fourth quarter of 2019, the Company recognized a non-operating $32 million settlement expense in its U.S. non-qualified pension plan. The charge is related to lump sum payments made to employees at retirement. The settlement expense is an accelerated recognition of past actuarial losses. In May 2019, 3M modified the 3M Retiree Life Insurance Plan postretirement benefit to close it to new participants effective August 1, 2019 (which results in employees who retire on or after August 1, 2019 not being eligible to participate in the plan) and reducing the maximum life insurance and death benefit to $8,000 for deaths on or after August 1, 2019. Due to these changes, the plan was re-measured in the second quarter of 2019, resulting in a decrease to the accumulated projected benefit obligation liability of approximately $150 million and a related increase to shareholders’ equity, specifically accumulated other comprehensive income in addition to an immaterial income statement benefit prospectively. In the second quarter of 2020, as a result of the divestiture of the drug delivery business, the Company recognized a curtailment in its United Kingdom Pension Plan. The resulting re-measurement of the pension plan funded status reduced long-term prepaid pension and post retirement assets (located within “other assets” of the Company’s balance sheet) by approximately $80 million, which was offset The following tables include a reconciliation of the beginning and ending balances of the benefit obligation and the fair value of plan assets as well as a summary of the related amounts recognized in the Company’s consolidated balance sheet as of December 31 of the respective years. 3M also has certain non-qualified unfunded pension and postretirement benefit plans, inclusive of plans related to supplement/excess benefits for employees impacted by particular relocations and other matters, that individually and in the aggregate are not significant and which are not included in the tables that follow. The obligations for these plans are included within other liabilities in the Company’s consolidated balance sheet and aggregated less than $40 million as of December 31, 2020 and 2019. Qualified and Non-qualified Pension Benefits Postretirement United States International Benefits (Millions) 2020 2019 2020 2019 2020 2019 Change in benefit obligation Benefit obligation at beginning of year $ 17,935 $ 15,948 $ 7,931 $ 6,965 $ 2,242 $ 2,175 Acquisitions/Transfers — — 1 9 — — Service cost 261 251 152 131 43 43 Interest cost 499 620 117 156 62 82 Participant contributions — — 9 7 — — Foreign exchange rate changes — — 427 55 (14) — Plan amendments — — — 3 — (171) Actuarial (gain) loss 1,785 2,209 464 906 176 225 Benefit payments (1,104) (1,128) (274) (302) (107) (112) Settlements, curtailments, special termination benefits and other — 35 (57) 1 (5) — Benefit obligation at end of year $ 19,376 $ 17,935 $ 8,770 $ 7,931 $ 2,397 $ 2,242 Change in plan assets Fair value of plan assets at beginning of year $ 16,099 $ 14,803 $ 6,923 $ 6,170 $ 1,338 $ 1,260 Acquisitions/Transfers — — — 4 — — Actual return on plan assets 2,071 2,323 1,102 858 147 187 Company contributions 61 101 92 106 3 3 Participant contributions — — 9 7 — — Foreign exchange rate changes — — 376 80 — — Benefit payments (1,104) (1,128) (274) (302) (107) (112) Settlements, curtailments, special termination benefits and other — — (34) — (5) — Fair value of plan assets at end of year $ 17,127 $ 16,099 $ 8,194 $ 6,923 $ 1,376 $ 1,338 Funded status at end of year $ (2,249) $ (1,836) $ (576) $ (1,008) $ (1,021) $ (904) Qualified and Non-qualified Pension Benefits Postretirement United States International Benefits (Millions) 2020 2019 2020 2019 2020 2019 Amounts recognized in the Consolidated Balance Sheet as of Dec. 31, Non-current assets $ — $ — $ 630 $ 230 $ — $ — Accrued benefit cost Current liabilities (52) (48) (15) (15) (4) (4) Non-current liabilities (2,197) (1,788) (1,191) (1,223) (1,017) (900) Ending balance $ (2,249) $ (1,836) $ (576) $ (1,008) $ (1,021) $ (904) Qualified and Non-qualified Pension Benefits Postretirement United States International Benefits (Millions) 2020 2019 2020 2019 2020 2019 Amounts recognized in accumulated other comprehensive income as of Dec. 31, Net transition obligation (asset) $ — $ — $ 9 $ 10 $ — $ — Net actuarial loss (gain) 6,080 5,899 1,557 1,967 713 663 Prior service cost (credit) (104) (128) (2) (5) (230) (262) Ending balance $ 5,976 $ 5,771 $ 1,564 $ 1,972 $ 483 $ 401 The balance of amounts recognized for international plans in accumulated other comprehensive income as of December 31 in the preceding table are presented based on the foreign currency exchange rate on that date. The pension accumulated benefit obligation represents the actuarial present value of benefits based on employee service and compensation as of the measurement date and does not include an assumption about future compensation levels. The accumulated benefit obligation of the U.S. pension plans was $18.441 billion and $17.125 billion at December 31, 2020 and 2019, respectively. The accumulated benefit obligation of the international pension plans was $8.181 billion and $7.355 billion at December 31, 2020 and 2018, respectively. The following amounts relate to pension plans with accumulated benefit obligations in excess of plan assets as of December 31: Qualified and Non-qualified Pension Plans United States International (Millions) 2020 2019 2020 2019 Projected benefit obligation $ 19,376 $ 17,935 $ 3,385 $ 2,986 Accumulated benefit obligation 18,441 17,125 3,119 2,752 Fair value of plan assets 17,127 16,099 2,199 1,778 Components of net periodic cost and other amounts recognized in other comprehensive income The service cost component of defined benefit net periodic benefit cost is recorded in cost of sales, selling, general and administrative expenses, and research, development and related expenses. As discussed in Note 6, the other components of net periodic benefit cost are reflected in other expense (income), net. Components of net periodic benefit cost and other supplemental information for the years ended December 31 follow: Qualified and Non-qualified Pension Benefits Postretirement United States International Benefits (Millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Net periodic benefit cost (benefit) Operating expense Service cost $ 261 $ 251 $ 288 $ 152 $ 131 $ 143 $ 43 $ 43 $ 52 Non-operating expense Interest cost 499 620 563 117 156 157 62 82 79 Expected return on plan assets (1,019) (1,040) (1,087) (306) (299) (307) (79) (81) (84) Amortization of transition asset — — — 2 — — — — — Amortization of prior service benefit (24) (24) (23) (5) (12) (13) (33) (33) (40) Amortization of net actuarial loss 536 366 503 131 78 114 49 34 61 Settlements, curtailments, special termination benefits and other 16 70 — 1 10 4 3 5 — Total non-operating expense (benefit) 8 (8) (44) (60) (67) (45) 2 7 16 Total net periodic benefit cost (benefit) $ 269 $ 243 $ 244 $ 92 $ 64 $ 98 $ 45 $ 50 $ 68 Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss Amortization of transition asset $ — $ — $ — $ (2) $ — $ — $ — $ — $ — Prior service cost (benefit) — — — — 3 7 — (171) — Amortization of prior service benefit 24 24 23 5 12 13 33 33 40 Net actuarial (gain) loss 733 926 (44) (358) 344 194 108 119 (127) Amortization of net actuarial loss (536) (366) (503) (131) (78) (114) (49) (34) (61) Foreign currency — — — 79 7 (83) (7) (1) (2) Settlements, curtailments, special termination benefits and other (16) (35) — (1) (8) (4) (3) (5) — Total recognized in other comprehensive (income) loss $ 205 $ 549 $ (524) $ (408) $ 280 $ 13 $ 82 $ (59) $ (150) Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss $ 474 $ 792 $ (280) $ (316) $ 344 $ 111 $ 127 $ (9) $ (82) Weighted-average assumptions used to determine benefit obligations as of December 31 Qualified and Non-qualified Pension Benefits Postretirement United States International Benefits 2020 2019 2018 2020 2019 2018 2020 2019 2018 Discount rate 2.55 % 3.25 % 4.36 % 1.38 % 1.81 % 2.50 % 2.50 % 3.27 % 4.41 % Compensation rate increase 3.21 % 3.21 % 4.10 % 2.88 % 2.88 % 2.89 % N/A N/A N/A Weighted-average assumptions used to determine net cost for years ended December 31 Qualified and Non-qualified Pension Benefits Postretirement United States International Benefits 2020 2019 2018 2020 2019 2018 2020 2019 2018 Discount rate - service cost 3.41 % 4.44 % 3.78 % 1.61 % 2.39 % 2.27 % 3.45 % 4.53 % 3.86 % Discount rate - interest cost 2.87 % 4.02 % 3.35 % 1.61 % 2.26 % 2.14 % 3.00 % 4.15 % 3.52 % Expected return on assets 6.75 % 7.00 % 7.25 % 4.70 % 4.90 % 5.02 % 6.32 % 6.43 % 6.53 % Compensation rate increase 3.21 % 4.10 % 4.10 % 2.88 % 2.89 % 2.89 % N/A N/A N/A The Company provides eligible retirees in the U.S. postretirement health care benefit plans to a savings account benefits-based plan. The contributions provided by the Company to the health savings accounts increase 3 percent per year for employees who retired prior to January 1, 2016 and increase 1.5 percent for employees who retire on or after January 1, 2016. Therefore, the Company no longer has material exposure to health care cost inflation. The Company determines the discount rate used to measure plan liabilities as of the December 31 measurement date for the pension and postretirement benefit plans, which is also the date used for the related annual measurement assumptions. The discount rate reflects the current rate at which the associated liabilities could be effectively settled at the end of the year. The Company sets its rate to reflect the yield of a portfolio of high quality, fixed-income debt instruments that would produce cash flows sufficient in timing and amount to settle projected future benefits. Using this methodology, the Company determined a discount rate of 2.55% for the U.S. pension plans and 2.50% for the postretirement benefit plans as of December 31, 2020, which is a decrease of 0.70 percentage points and 0.77 percentage points, respectively, from the rates used as of December 31, 2019. A decrease in the discount rate increases the Projected Benefit Obligation (PBO), the significant decrease in the discount rate as of December 31, 2020 resulted in an approximately $1.8 billion higher benefit obligation for the U.S. pension and postretirement plans. The Company measures service cost and interest cost separately using the spot yield curve approach applied to each corresponding obligation. Service costs are determined based on duration-specific spot rates applied to the service cost cash flows. The interest cost calculation is determined by applying duration-specific spot rates to the year-by-year projected benefit payments. The spot yield curve approach does not affect the measurement of the total benefit obligations as the change in service and interest costs offset in the actuarial gains and losses recorded in other comprehensive income. For the primary U.S. qualified pension plan, the Company’s assumption for the expected return on plan assets was 6.75% in 2020. Projected returns are based primarily on broad, publicly traded equity and fixed-income indices and forward-looking estimates of active portfolio and investment management. As of December 31, 2020, the Company’s 2021 expected long-term rate of return on U.S. plan assets is 6.50%. The expected return assumption is based on the strategic asset allocation of the plan, long term capital market return expectations and expected performance from active investment management. The 2020 expected long-term rate of return is based on an asset allocation assumption of 22% global equities, 12% private equities, 49% fixed-income securities, and 17% absolute return investments independent of traditional performance benchmarks, along with positive returns from active investment management. The actual net rate of return on plan assets in 2020 was 13.6%. In 2019 the plan earned a rate of return of 16.3% and in 2018 earned a return of -0.5%. The average annual actual return on the plan assets over the past 10 As of December 31, 2019, the Company converted to the “Pri-2012 Aggregate Mortality Table”. In 2020, the Company updated the mortality improvement scales to the Society of Actuaries Scale MP-2020. The December 31, 2020 update resulted in an immaterial decrease to the U.S. pension PBO and U.S. accumulated postretirement benefit obligations. During 2020, the Company contributed $153 million to its U.S. and international pension plans and $3 million to its postretirement plans. During 2019, the Company contributed $207 million to its U.S. and international pension plans and $3 million to its postretirement plans. In 2021, the Company expects to contribute an amount in the range of $100 million to $200 million of cash to its U.S. and international retirement plans. The Company does not have a required minimum cash pension contribution obligation for its U.S. plans in 2021. Future contributions will depend on market conditions, interest rates and other factors. Future Pension and Postretirement Benefit Payments The following table provides the estimated pension and postretirement benefit payments that are payable from the plans to participants. Qualified and Non-qualified Pension Benefits Postretirement (Millions) United States International Benefits 2021 Benefit Payments $ 1,127 $ 263 $ 127 2022 Benefit Payments 1,134 276 133 2023 Benefit Payments 1,135 292 140 2024 Benefit Payments 1,134 311 145 2025 Benefit Payments 1,139 319 152 Next five years 5,619 1,752 792 Plan Asset Management 3M’s investment strategy for its pension and postretirement plans is to manage the funds on a going-concern basis. The primary goal of the trust funds is to meet the obligations as required. The secondary goal is to earn the highest rate of return possible, without jeopardizing its primary goal, and without subjecting the Company to an undue amount of contribution risk. Fund returns are used to help finance present and future obligations to the extent possible within actuarially determined funding limits and tax-determined asset limits, thus reducing the potential need for additional contributions from 3M. The investment strategy has used long duration cash bonds and derivative instruments to offset a significant portion of the interest rate sensitivity of U.S. pension liabilities. Normally, 3M does not buy or sell any of its own securities as a direct investment for its pension and other postretirement benefit funds. However, due to external investment management of the funds, the plans may indirectly buy, sell or hold 3M securities. The aggregate amount of 3M securities are not considered to be material relative to the aggregate fund percentages. The discussion that follows references the fair value measurements of certain assets in terms of levels 1, 2 and 3. See Note 15 for descriptions of these levels. While the company believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. U.S. Pension Plans and Postretirement Benefit Plan Assets In order to achieve the investment objectives in the U.S. pension plans and U.S. postretirement benefit plans, the investment policies include a target strategic asset allocation. The investment policies allow some tolerance around the target in recognition that market fluctuations and illiquidity of some investments may cause the allocation to a specific asset class to vary from the target allocation, potentially for long periods of time. Acceptable ranges have been designed to allow for deviation from strategic targets and to allow for the opportunity for tactical over- and under-weights. The portfolios will normally be rebalanced when the quarter-end asset allocation deviates from acceptable ranges. The allocation is reviewed regularly by the named fiduciary of the plans. Approximately 50% of the postretirement benefit plan assets are in a 401(h) account. The 401(h) account assets are in the same trust as the primary U.S. pension plan and invested with the same investment objectives as the primary U.S. pension plan. The fair values of the assets held by the U.S. pension plans by asset class are as follows: Fair Value Measurements Using Inputs Considered as Fair Value at (Millions) Level 1 Level 2 Level 3 Dec. 31, Asset Class 2020 2019 2020 2019 2020 2019 2020 2019 Equities U.S. equities $ 2,082 $ 1,575 $ — $ — $ — $ — $ 2,082 $ 1,575 Non-U.S. equities 2,041 1,585 — — — — 2,041 1,585 Index and long/short equity funds* 433 417 Total Equities $ 4,123 $ 3,160 $ — $ — $ — $ — $ 4,556 $ 3,577 Fixed Income U.S. government securities $ 1,301 $ 2,346 $ 978 $ 916 $ — $ — $ 2,279 $ 3,262 Non-U.S. government securities — — 71 61 — — 71 61 Preferred and convertible securities — — 55 52 — — 55 52 U.S. corporate bonds 10 10 4,501 3,566 — — 4,511 3,576 Non-U.S. corporate bonds — — 820 759 — — 820 759 Derivative instruments (4) (5) 7 109 — — 3 104 Other* 71 — Total Fixed Income $ 1,307 $ 2,351 $ 6,432 $ 5,463 $ — $ — $ 7,810 $ 7,814 Private Equity Growth equity $ 70 $ 80 $ — $ — $ — $ — $ 70 $ 80 Partnership investments* 1,801 1,865 Total Private Equity $ 70 $ 80 $ — $ — $ — $ — $ 1,871 $ 1,945 Absolute Return Fixed income and other $ — $ 1 $ 134 $ 117 $ — $ — $ 134 $ 118 Hedge fund/fund of funds* 2,046 2,010 Partnership investments* 567 589 Total Absolute Return $ — $ 1 $ 134 $ 117 $ — $ — $ 2,747 $ 2,717 Cash and Cash Equivalents Cash and cash equivalents $ 25 $ 20 $ 12 $ 5 $ — $ — $ 37 $ 25 Repurchase agreements and derivative margin activity — — (6) (1) — — (6) (1) Cash and cash equivalents, valued at net asset value* 475 480 Total Cash and Cash Equivalents $ 25 $ 20 $ 6 $ 4 $ — $ — $ 506 $ 504 Total $ 5,525 $ 5,612 $ 6,572 $ 5,584 $ — $ — $ 17,490 $ 16,557 Other items to reconcile to fair value of plan assets $ (363) $ (458) Fair value of plan assets $ 17,127 $ 16,099 * In accordance with ASC 820-10, certain investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities then divided by the number of units outstanding and is determined by the investment manager or custodian of the fund. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets. The fair values of the assets held by the postretirement benefit plans by asset class are as follows: Fair Value Measurements Using Inputs Considered as Fair Value at (Millions) Level 1 Level 2 Level 3 Dec. 31, Asset Class 2020 2019 2020 2019 2020 2019 2020 2019 Equities U.S. equities $ 347 $ 337 $ — $ — $ — $ — $ 347 $ 337 Non-U.S. equities 103 77 — — — — 103 77 Index and long/short equity funds* 31 33 Total Equities $ 450 $ 414 $ — $ — $ — $ — $ 481 $ 447 Fixed Income U.S. government securities $ 95 $ 136 $ 214 $ 242 $ — $ — $ 309 $ 378 Non-U.S. government securities — — 6 6 — — 6 6 U.S. corporate bonds 1 — 267 203 — — 268 203 Non-U.S. corporate bonds — — 52 46 — — 52 46 Derivative instruments — — — 5 — — — 5 Other* 3 — Total Fixed Income $ 96 $ 136 $ 539 $ 502 $ — $ — $ 638 $ 638 Private Equity Growth equity $ 3 $ 4 $ — $ — $ — $ — $ 3 $ 4 Partnership investments* 95 92 Total Private Equity $ 3 $ 4 $ — $ — $ — $ — $ 98 $ 96 Absolute Return Fixed income and other $ — $ — $ 7 $ 5 $ — $ — $ 7 $ 5 Hedge fund/fund of funds* 100 92 Partnership investments* 28 27 Total Absolute Return $ — $ — $ 7 $ 5 $ — $ — $ 135 $ 124 Cash and Cash Equivalents Cash and cash equivalents $ 25 $ 33 $ 1 $ 1 $ — $ — $ 26 $ 34 Cash and cash equivalents, valued at net asset value* 23 22 Total Cash and Cash Equivalents $ 25 $ 33 $ 1 $ 1 $ — $ — $ 49 $ 56 Total $ 574 $ 587 $ 547 $ 508 $ — $ — $ 1,401 $ 1,361 Other items to reconcile to fair value of plan assets $ (25) $ (23) Fair value of plan assets $ 1,376 $ 1,338 *In accordance with ASC 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities then divided by the number of units outstanding and is determined by the investment manager or custodian of the fund. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets. Publicly traded equities are valued at the closing price reported in the active market in which the individual securities are traded. Fixed income includes derivative instruments such as credit default swaps, interest rate swaps and futures contracts. Corporate debt includes bonds and notes, asset backed securities, collateralized mortgage obligations and private placements. Swaps and derivative instruments are valued by the custodian using closing market swap curves and market derived inputs. U.S. government and government agency bonds and notes are valued at the closing price reported in the active market in which the individual security is traded. Corporate bonds and notes, asset backed securities and collateralized mortgage obligations are valued at either the yields currently available on comparable securities of issuers with similar credit ratings or valued under a discounted cash flow approach that utilizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable such as credit and liquidity risks. Private placements are valued by the custodian using recognized pricing services and sources. The private equity portfolio is a diversified mix of derivative instruments, growth equity and partnership interests. Growth equity investments are valued at the closing price reported in the active market in which the individual securities are traded. Absolute return consists primarily of partnership interests in hedge funds, hedge fund of funds or other private fund vehicles. Corporate debt instruments are valued at either the yields currently available on comparable securities of issuers with similar credit ratings or valued under a discounted cash flow approach that utilizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable such as credit and liquidity risk ratings. Other items to reconcile to fair value of plan assets include, interest receivables, amounts due for securities sold, amounts payable for securities purchased and interest payable. The balances of and changes in the fair values of the U.S. pension plans’ and postretirement plans’ level 3 assets for the periods ended December 31, 2020 and 2019 were not material. International Pension Plans Assets Outside the U.S., pension plan assets are typically managed by decentralized fiduciary committees. The disclosure below of asset categories is presented in aggregate for over 70 defined benefit plans in 25 countries; however, there is significant variation in asset allocation policy from country to country. Local regulations, local funding rules, and local financial and tax considerations are part of the funding and investment allocation process in each country. The Company provides standard funding and investment guidance to all international plans with more focused guidance to the larger plans. Each plan has its own strategic asset allocation. The asset allocations are reviewed periodically and rebalanced when necessary. The fair values of the assets held by the international pension plans by asset class are as follows: Fair Value Measurements Using Inputs Considered as Fair Value at (Millions) Level 1 Level 2 Level 3 Dec. 31, Asset Class 2020 2019 2020 2019 2020 2019 2020 2019 Equities Growth equities $ 547 $ 638 $ 209 $ 796 $ — $ — $ 756 $ 1,434 Value equities 659 696 396 10 — — 1,055 706 Core equities 46 61 99 88 4 5 149 154 Equities, valued at net asset value* 74 18 Total Equities $ 1,252 $ 1,395 $ 704 $ 894 $ 4 $ 5 $ 2,034 $ 2,312 Fixed Income Domestic government $ 71 $ 353 $ 1,045 $ 433 $ 5 $ 4 $ 1,121 $ 790 Foreign government 33 22 476 603 — — 509 625 Corporate debt securities 34 3 2,470 1,599 11 9 2,515 1,611 Fixed income securities, valued at net asset value* 563 449 Total Fixed Income $ 138 $ 378 $ 3,991 $ 2,635 $ 16 $ 13 $ 4,708 $ 3,475 Private Equity Real estate |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2020 | |
Derivatives | |
Derivatives | NOTE 14. Derivatives The Company uses interest rate swaps, currency swaps, and forward and option contracts to manage risks generally associated with foreign exchange rate, interest rate and commodity price fluctuations. The information that follows explains the various types of derivatives and financial instruments used by 3M, how and why 3M uses such instruments, how such instruments are accounted for, and how such instruments impact 3M’s financial position and performance. 3M adopted ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities Additional information with respect to derivatives is included elsewhere as follows: ● Impact on other comprehensive income of nonderivative hedging and derivative instruments is included in Note 8. ● Fair value of derivative instruments is included in Note 15. ● Derivatives and/or hedging instruments associated with the Company’s long-term debt are also described in Note 12. Types of Derivatives/Hedging Instruments and Inclusion in Income/Other Comprehensive Income: Cash Flow Hedges: For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized in current earnings. Cash Flow Hedging - Foreign Currency Forward and Option Contracts: Cash Flow Hedging — Interest Rate Contracts: During 2018, the Company entered into forward starting interest rate swaps with a notional amount of $1.2 billion as hedges During 2019, the Company entered into additional forward starting interest rate swaps with a notional amount of $743 million. Concurrent with the issuance of the medium-term notes in February 2019 and the additional issuance of registered notes in August 2019, 3M terminated all outstanding interest rate swaps related to forecasted issuances of debt. These terminations resulted in a net loss of $143 million within accumulated other comprehensive income that will be amortized over the respective lives of the debt. In March 2020, the Company entered into treasury rate lock contracts with a notional amount of $500 million that were terminated concurrently with the March 2020 issuance of registered notes as discussed in Note 12. The termination resulted in an immaterial net loss within accumulated other comprehensive income that will be amortized for the respective lives of the debt. The amortization of gains and losses on forward starting interest rate swaps is included in the tables below as part of the gain/(loss) reclassified from accumulated other comprehensive income into income. As of December 31, 2020, the Company had a balance of $173 million associated with the after-tax net unrealized loss associated with cash flow hedging instruments recorded in accumulated other comprehensive income. This includes a remaining balance of $107 million (after-tax loss) related to the forward starting interest rate swap and treasury rate lock contacts, which will be amortized over the respective lives of the notes. Based on exchange rates as of December 31, 2020, 3M expects to reclassify approximately $51 million, $23 million, and $99 million of the after-tax net unrealized foreign exchange cash flow hedging losses to earnings in 2021, 2022, and after 2022, respectively, (with the impact offset by earnings/losses from underlying hedged items). The location in the consolidated statements of income and comprehensive income and amounts of gains and losses related to derivative instruments designated as cash flow hedges are provided in the following table. Reclassifications of amounts from accumulated other comprehensive income into income include accumulated gains (losses) on dedesignated hedges at the time earnings are impacted by the forecasted transaction. Pretax Gain (Loss) Recognized in Other Pretax Gain (Loss) Reclassified Comprehensive from Accumulated Other Income on Derivative Comprehensive Income into Income Year ended December 31, 2020 (Millions) Amount Location Amount Foreign currency forward/option contracts $ (111) Cost of sales $ 80 Interest rate contracts (2) Interest expense (9) Total $ (113) $ 71 Year ended December 31, 2019 (Millions) Amount Location Amount Foreign currency forward/option contracts $ 96 Cost of sales $ 74 Interest rate contracts (122) Interest expense (4) Total $ (26) $ 70 Pretax Gain (Loss) Recognized in Pretax Gain (Loss) Income on Effective Portion of Ineffective Portion of Gain Recognized in Other Derivative as a Result of (Loss) on Derivative and Comprehensive Reclassification from Amount Excluded from Income on Effective Accumulated Other Effectiveness Testing Portion of Derivative Comprehensive Income Recognized in Income Year ended December 31, 2018 (Millions) Amount Location Amount Location Amount Foreign currency forward/option contracts $ 151 Cost of sales $ (95) Cost of sales $ — Interest rate swap contracts (18) Interest expense (1) Interest expense — Total $ 133 $ (96) $ — Fair Value Hedges: For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivatives as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. Fair Value Hedging - Interest Rate Swaps: In November 2013, 3M issued a Eurobond due in 2021 for a face amount of 600 million euros. Upon debt issuance, 3M completed a fixed-to-floating interest rate swap on a notional amount of 300 million euros as a fair value hedge of a portion of the fixed interest rate Eurobond obligation. In June 2014, 3M issued $950 million aggregate principal amount of medium-term notes. Upon debt issuance, the Company entered into an interest rate swap to convert $600 million of a $625 million note that was due in 2019, included in this issuance, to an interest rate based on a floating three In August 2015, 3M issued $1.5 billion aggregate principal amount of medium-term notes. Upon debt issuance, the Company entered into two interest rate swaps as fair value hedges of a portion of the fixed interest rate medium-term note obligation. The first converted a $450 million three-year fixed rate note that matured in August 2018 at which time the associated interest rate swap also matured, and the second converted $300 million of a five-year fixed rate note that matured in August 2020 at which time the associated interest rate swap also matured. In the fourth quarter of 2017, the Company entered into an interest rate swap as a fair value hedge with a notional amount of $200 million that converted the company’s fixed-rate medium-term note that matured in August 2020 at which time the associated interest rate swap also matured. In September 2018, the Company entered into an interest rate swap with a notional amount of $200 million that converted a portion of the Company’s $400 million aggregate principal amount of fixed rate medium-term notes due 2021 into a floating rate note with an interest rate based on a three Refer to the section below titled Statement of Income Location and Impact of Cash Flow and Fair Value Derivative Instruments The location in the consolidated statements of income and amounts of gains and losses related to derivative instruments designated as fair value hedges and similar information relative to the hedged items are as follows for periods prior to 2019: Gain (Loss) on Derivative Gain (Loss) on Hedged Item Recognized in Income Recognized in Income Year ended December 31, 2018 (Millions) Location Amount Location Amount Interest rate swap contracts Interest expense $ (5) Interest expense $ 5 Total $ (5) $ 5 The following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges: Cumulative Amount of Fair Value Hedging Carrying Value of the Adjustment Included in the Carrying Value Hedged Liabilities (in millions) of the Hedged Liabilities (in millions) Location on the Consolidated Balance Sheet December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Short-term borrowings and current portion of long-term debt $ 373 $ 499 $ 5 $ — Long-term debt 225 775 6 22 Total $ 598 $ 1,274 $ 11 $ 22 Net Investment Hedges: The Company may use non-derivative (foreign currency denominated debt) and derivative (foreign exchange forward contracts) instruments to hedge portions of the Company’s investment in foreign subsidiaries and manage foreign exchange risk. For instruments that are designated and qualify as hedges of net investments in foreign operations and that meet the effectiveness requirements, the net gains or losses attributable to changes in spot exchange rates are recorded in cumulative translation within other comprehensive income. The remainder of the change in value of such instruments is recorded in earnings. Recognition in earnings of amounts previously recorded in cumulative translation is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. To the extent foreign currency denominated debt is not designated in or is dedesignated from a net investment hedge relationship, changes in value of that portion of foreign currency denominated debt due to exchange rate changes are recorded in earnings through their maturity date. 3M’s use of foreign exchange forward contracts designated in hedges of the Company’s net investment in foreign subsidiaries can vary by time period depending on when foreign currency denominated debt balances designated in such relationships are dedesignated, matured, or are newly issued and designated. Additionally, variation can occur in connection with the extent of the Company’s desired foreign exchange risk coverage. During the first quarter of 2018, the Company dedesignated 300 million euros of foreign currency denominated debt from a former net investment hedge relationship. At December 31, 2020, the total notional amount of foreign exchange forward contracts designated in net investment hedges was approximately 50 million euros, along with a principal amount of long-term debt instruments designated in net investment hedges totaling 3.5 billion euros. The maturity dates of these derivative and nonderivative instruments designated in net investment hedges range from 2021 to 2031. The location in the consolidated statements of income and comprehensive income and amounts of gains and losses related to derivative and nonderivative instruments designated as net investment hedges are as follows. There were no reclassifications of the effective portion of net investment hedges out of accumulated other comprehensive income into income for the periods presented in the table below. Pretax Gain (Loss) Recognized as Cumulative Translation Amount of Gain (Loss) Excluded within Other from Effectiveness Testing Comprehensive Income Recognized in Income Year ended December 31, 2020 (Millions) Amount Location Amount Foreign currency denominated debt $ (351) Cost of sales $ — Foreign currency forward contracts (1) Cost of sales 5 Total $ (352) $ 5 Year ended December 31, 2019 (Millions) Amount Location Amount Foreign currency denominated debt $ 108 Cost of sales $ — Foreign currency forward contracts 32 Cost of sales 20 Total $ 140 $ 20 Pretax Gain (Loss) Recognized as Cumulative Translation within Other Ineffective Portion of Gain (Loss) on Comprehensive Income Instrument and Amount Excluded on Effective Portion of from Effectiveness Testing Instrument Recognized in Income Year ended December 31, 2018 (Millions) Amount Location Amount Foreign currency denominated debt $ 222 Cost of sales $ (2) Foreign currency forward contracts 18 Cost of sales 4 Total $ 240 $ 2 Derivatives Not Designated as Hedging Instruments: Derivatives not designated as hedging instruments include dedesignated 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. The location in the consolidated statements of income and amounts of gains and losses related to derivative instruments not designated as hedging instruments are as follows: Gain (Loss) on Derivative Recognized in Income Year ended December 31, 2020 2019 2018 (Millions) Location Amount Amount Amount Foreign currency forward/option contracts Cost of sales $ 2 $ 2 $ 13 Foreign currency forward contracts Interest expense 43 (13) (109) Total $ 45 $ (11) $ (96) Statement of Income Location and Impact of Cash Flow and Fair Value Derivative Instruments The location in the consolidated statement of income and pre-tax amounts recognized in income related to derivative instruments designated in a cash flow or fair value hedging relationship are as follows: Location and Amount of Gain (Loss) Recognized in Income Year ended December 31, 2020 (Millions) Cost of sales Other expense Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of cash flow or fair value hedges are recorded $ 16,605 $ 450 The effects of cash flow and fair value hedging: Gain or (loss) on cash flow hedging relationships: Foreign currency forward/option contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 80 $ — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — (9) Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items $ — $ 4 Derivatives designated as hedging instruments — (4) Location and Amount of Gain (Loss) Recognized in Income Year ended December 31, 2019 (Millions) Cost of sales Other expense Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of cash flow or fair value hedges are recorded $ 17,136 $ 462 The effects of cash flow and fair value hedging: Gain or (loss) on cash flow hedging relationships: Foreign currency forward/option contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 74 $ — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — (4) Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items $ — $ (8) Derivatives designated as hedging instruments — 8 Location and Fair Value Amount 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. Additional information with respect to the fair value of derivative instruments is included in Note 15. Gross Assets Liabilities Notional Fair Fair December 31, 2020 (Millions) Amount Location Value Amount Location Value Amount Derivatives designated as hedging instruments Foreign currency forward/option contracts $ 1,630 Other current assets $ 14 Other current liabilities $ 67 Foreign currency forward/option contracts 669 Other assets 10 Other liabilities 25 Interest rate contracts 403 Other current assets 7 Other current liabilities — Total derivatives designated as hedging instruments $ 31 $ 92 Derivatives not designated as hedging instruments Foreign currency forward/option contracts $ 3,166 Other current assets $ 13 Other current liabilities $ 14 Total derivatives not designated as hedging instruments $ 13 $ 14 Total derivative instruments $ 44 $ 106 Gross Assets Liabilities Notional Fair Fair December 31, 2019 (Millions) Amount Location Value Amount Location Value Amount Derivatives designated as hedging instruments Foreign currency forward/option contracts $ 1,995 Other current assets $ 64 Other current liabilities $ 9 Foreign currency forward/option contracts 1,041 Other assets 50 Other liabilities 3 Interest rate contracts 500 Other current assets — Other current liabilities — Interest rate contracts 603 Other assets 17 Other liabilities — Total derivatives designated as hedging instruments $ 131 $ 12 Derivatives not designated as hedging instruments Foreign currency forward/option contracts $ 2,684 Other current assets $ 11 Other current liabilities $ 8 Total derivatives not designated as hedging instruments $ 11 $ 8 Total derivative instruments $ 142 $ 20 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. As of December 31, 2020, 3M has International Swaps and Derivatives Association (ISDA) agreements with 17 applicable banks and financial institutions which contain netting provisions. In addition to a master agreement with 3M supported by a primary counterparty’s parent guarantee, 3M also has associated credit support agreements in place with 16 of its primary derivative counterparties which, among other things, provide the circumstances under which either party is required to post eligible collateral (when the market value of transactions covered by these agreements exceeds specified thresholds or if a counterparty’s credit rating has been downgraded to a predetermined rating). 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. As of the applicable dates presented below, no cash collateral had been received or pledged related to these derivative instruments. Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject Gross Amount of to Master Netting Agreements Derivative Assets Gross Amount of Presented in the Eligible Offsetting Cash Consolidated Recognized Collateral Net Amount of December 31, 2020 (Millions) Balance Sheet Derivative Liabilities Received Derivative Assets Derivatives subject to master netting agreements $ 44 $ 11 $ — $ 33 Derivatives not subject to master netting agreements — — Total $ 44 $ 33 December 31, 2019 (Millions) Derivatives subject to master netting agreements $ 142 $ 14 $ — $ 128 Derivatives not subject to master netting agreements — — Total $ 142 $ 128 Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject Gross Amount of to Master Netting Agreements Derivative Liabilities Gross Amount of Presented in the Eligible Offsetting Cash Net Amount of Consolidated Recognized Collateral Derivative December 31, 2020 (Millions) Balance Sheet Derivative Assets Pledged Liabilities Derivatives subject to master netting agreements $ 106 $ 11 $ — $ 95 Derivatives not subject to master netting agreements — — Total $ 106 $ 95 December 31, 2019 (Millions) Derivatives subject to master netting agreements $ 20 $ 14 $ — $ 6 Derivatives not subject to master netting agreements — — Total $ 20 $ 6 Foreign Currency Effects 3M estimates that year-on-year foreign currency transaction effects, including hedging impacts, decreased pre-tax income by approximately $21 million in 2020 and increased pre-tax income by approximately $201 million in 2019. These estimates include transaction gains and losses, including derivative instruments designed to reduce foreign currency exchange rate risks. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | NOTE 15. Fair Value Measurements 3M follows ASC 820, Fair Value Measurements and Disclosures Changes to the Disclosure Requirements for Fair Value Measurements, Assets and Liabilities that are Measured at Fair Value on a Recurring Basis: For 3M, assets and liabilities that are measured at fair value on a recurring basis primarily relate to available-for-sale marketable securities and certain derivative instruments. Derivatives include cash flow hedges, interest rate swaps and net investment hedges. The information in the following paragraphs and tables primarily addresses matters relative to these financial assets and liabilities. Separately, there were no material fair value measurements with respect to nonfinancial assets or liabilities that are recognized or disclosed at fair value in the Company’s financial statements on a recurring basis for 2020 and 2019. 3M uses various valuation techniques, which are primarily based upon the market and income approaches, with respect to financial assets and liabilities. Following is a description of the valuation methodologies used for the respective financial assets and liabilities measured at fair value. Available-for-sale marketable securities — except certain U.S. municipal securities: Marketable securities, except certain U.S. municipal securities, are valued utilizing multiple sources. A weighted average price is used for these securities. Market prices are obtained for these securities from a variety of industry standard data providers, security master files from large financial institutions, and other third-party sources. These multiple prices are used as inputs into a distribution-curve-based algorithm to determine the daily fair value to be used. 3M classifies U.S. treasury securities as level 1, while all other marketable securities (excluding certain U.S. municipal securities) are classified as level 2. Marketable securities are discussed further in Note 11. Available-for-sale marketable securities —certain U.S. municipal securities only: 3M holds municipal securities with certain cities in the United States as of December 31, 2020. Due to the nature of these securities, the valuation method utilized includes referencing the carrying value of the corresponding finance lease obligation as adjusted for additional issuances when 3M sells its assets to the municipality and decreases in the form of bond amortization payments, and as such will be classified as level 3 securities separately. Investments: Investments include equity securities that are traded in an active market. Closing stock prices are readily available from active markets and are representative of fair value. 3M classifies these securities as Level 1. Investments are included within other assets on the Company’s consolidated balance sheet. Derivative instruments: The Company’s derivative assets and liabilities within the scope of ASC 815, Derivatives and Hedging 3M has determined that foreign currency forwards, currency swaps, foreign currency options, interest rate swaps and cross-currency swaps will be considered level 2 measurements. 3M uses inputs other than quoted prices that are observable for the asset. These inputs include foreign currency exchange rates, volatilities, and interest rates. Derivative positions are primarily valued using standard calculations/models that use as their basis readily observable market parameters. Industry standard data providers are 3M’s primary source for forward and spot rate information for both interest rates and currency rates, with resulting valuations periodically validated through third-party or counterparty quotes and a net present value stream of cash flows model. The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis. Fair Value Measurements Description Fair Value at Using Inputs Considered as (Millions) December 31, 2020 Level 1 Level 2 Level 3 Assets: Available-for-sale: Marketable securities: Corporate debt securities $ 7 $ — $ 7 $ — Commercial paper 237 — 237 — Certificates of deposit/time deposits 31 — 31 — U.S. treasury securities 125 125 — — U.S. municipal securities 34 — — 34 Derivative instruments — assets: Foreign currency forward/option contracts 37 — 37 — Interest rate contracts 7 — 7 — Liabilities: Derivative instruments — liabilities: Foreign currency forward/option contracts 106 — 106 — Fair Value Measurements Description Fair Value at Using Inputs Considered as (Millions) December 31, 2019 Level 1 Level 2 Level 3 Assets: Available-for-sale: Marketable securities: Commercial paper $ 85 $ — $ 85 $ — Certificates of deposit/time deposits 10 — 10 — U.S. municipal securities 46 — — 46 Investments 25 25 — — Derivative instruments — assets: Foreign currency forward/option contracts 125 — 125 — Interest rate contracts 17 — 17 — Liabilities: Derivative instruments — liabilities: Foreign currency forward/option contracts 20 — 20 — The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis in the table above that used significant unobservable inputs (level 3). Marketable securities — certain U.S. municipal securities only (Millions) 2020 2019 2018 Beginning balance $ 46 $ 40 $ 30 Total gains or losses: Included in earnings — — — Included in other comprehensive income — — — Purchases and issuances 10 9 13 Sales and settlements (22) (3) (3) Transfers in and/or out of level 3 — — — Ending balance 34 46 40 Change in unrealized gains or losses for the period included in earnings for securities held at the end of the reporting period — — — In addition, the plan assets of 3M’s pension and postretirement benefit plans are measured at fair value on a recurring basis (at least annually). Refer to Note 13. 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 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 long-lived asset impairments for 2018 and 2019. There were no material adjustments to equity securities using the measurement alternative for 2019. 3M reflected an immaterial charge related to impairment of certain indefinite-lived assets and a net charge of $22 million related to adjustment to the carrying value of equity securities using the measurement alternative during the first quarter of 2020. Fair Value of Financial Instruments: The Company’s financial instruments include cash and cash equivalents, marketable securities, held-to-maturity debt securities, accounts receivable, certain investments, accounts payable, borrowings, and derivative contracts. The fair values of cash equivalents, accounts receivable, held-to-maturity debt securities, 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: December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair (Millions) Value Value Value Value Long-term debt, excluding current portion $ 17,989 $ 20,496 $ 17,518 $ 18,475 The fair values reflected above consider the terms of the related debt absent the impacts of derivative/hedging activity. The carrying amount of long-term debt referenced above is impacted by certain fixed-to-floating interest rate swaps that are designated as fair value hedges and by the designation of certain fixed rate Eurobond securities issued by the Company as hedging instruments of the Company’s net investment in its European subsidiaries. A number of 3M’s fixed-rate bonds were trading at a premium at December 31, 2020 and 2019 due to the lower interest rates and tighter credit spreads compared to issuance levels. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | NOTE 16. Commitments and Contingencies Unconditional Purchase Obligations: Unconditional purchase obligations are defined as an agreement to purchase goods or services that is enforceable and legally binding (non-cancelable, or cancelable only in certain circumstances). The Company estimates its total unconditional purchase obligation commitment (for those contracts with terms in excess of one year) as of December 31, 2020, at $985 million. Payments by year are estimated as follows: 2021 ($294 million), 2022 ($328 million), 2023 ($216 million), 2024 ($95 million), 2025 ($46 million) and after 2026 ($6 million). Many of these commitments relate to take or pay contracts, in which 3M guarantees payment to ensure availability of products or services that are sold to customers. The Company expects to receive consideration (products or services) for these unconditional purchase obligations. The purchase obligation amounts do not represent the entire anticipated purchases in the future, but represent only those items for which the Company is contractually obligated. The majority of 3M’s products and services are purchased as needed, with no unconditional commitment. For this reason, these amounts will not provide an indication of the Company’s expected future cash outflows related to purchases. Warranties/Guarantees: 3M’s accrued product warranty liabilities, recorded on the Consolidated Balance Sheet as part of current and long-term liabilities, are estimated at approximately $46 million at December 31, 2020, and $51 million at December 31, 2019. Further information on product warranties are not disclosed, as the Company considers the balance immaterial to its consolidated results of operations and financial condition. The fair value of 3M guarantees of loans with third parties and other guarantee arrangements are not material. Related Party Activity: 3M does not have any material related party activity. Legal Proceedings : The Company and some of its subsidiaries are involved in numerous claims and lawsuits, principally in the United States, and regulatory proceedings worldwide. These claims, lawsuits and proceedings include, but are not limited to, products liability (involving products that the Company now or formerly manufactured and sold), intellectual property, commercial, antitrust, federal False Claims Act, securities, and state and federal environmental laws. Unless otherwise stated, the Company is vigorously defending all such litigation and proceedings. From time to time, the Company also receives subpoenas or requests for information from various government agencies. The Company generally responds to such subpoenas and requests 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 subpoenas and requests can also lead to the assertion of claims or the commencement of administrative, civil or criminal legal proceedings against the Company and others, as well as to settlements. The outcomes of legal proceedings and regulatory matters are often difficult to predict. Any determination that the Company’s operations or activities are not, or were not, in compliance with applicable laws or regulations could result in the imposition of fines, civil or criminal penalties, and equitable remedies, including disgorgement, suspension or debarment or injunctive relief. Process for Disclosure and Recording of Liabilities Related to Legal Proceedings Many lawsuits and claims involve highly complex issues relating to causation, scientific evidence, and alleged actual damages, all of which are otherwise subject to substantial uncertainties. Assessments of lawsuits and claims can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions. When making determinations about recording liabilities related to legal proceedings, the Company complies with the requirements of ASC 450, Contingencies Because litigation is subject to inherent uncertainties, and unfavorable rulings or developments could occur, there can be no certainty that the Company may not ultimately incur charges in excess of presently recorded liabilities. Many of the matters described are at preliminary stages or seek an indeterminate amount of damages. It is not uncommon for claims to be resolved over many years. A future adverse ruling, settlement, unfavorable development, or increase in accruals for one or more of these matters could result in future charges that could have a material adverse effect on the Company’s results of operations or cash flows in the period in which they are recorded. Although the Company cannot estimate its exposure to all legal proceedings, the Company currently believes that the ultimate outcome of legal proceedings or future charges, if any, would not have a material adverse effect on the consolidated financial position of the Company. Based on experience and developments, the Company reexamines its estimates of probable liabilities and associated expenses and receivables each period, and whether it is able to estimate a liability previously determined to be not estimable and/or not probable. Where appropriate, the Company makes additions to or adjustments of its estimated liabilities. As a result, the current estimates of the potential impact on the Company’s consolidated financial position, results of operations and cash flows for the legal proceedings and claims pending against the Company could change in the future. Process for Disclosure and Recording of Insurance Receivables Related to Legal Proceedings The Company estimates insurance receivables based on an analysis of the terms of its numerous policies, including their exclusions, pertinent case law interpreting comparable policies, its experience with similar claims, and assessment of the nature of the claim and remaining coverage, and records an amount it has concluded is likely to be recovered. 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 expects to recover under 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 expects to recover for the expense incurred. The following sections first describe the significant legal proceedings in which the Company is involved, and then describe the liabilities and associated insurance receivables the Company has accrued relating to its significant legal proceedings. Respirator Mask/Asbestos Litigation As of December 31, 2020, the Company is a named defendant, with multiple co-defendants, in numerous lawsuits in various courts that purport to represent approximately 2,075 individual claimants, compared to approximately 1,727 individual claimants with actions pending on December 31, 2019. 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. As of year-end 2020, there has been an increase in the number of cases filed alleging injuries from exposures to coal mine dust. A minority of the lawsuits and claims resolved by and currently pending against the Company generally allege personal injury from occupational exposure to asbestos from products previously manufactured by the Company, which are often unspecified, as well as products manufactured by other defendants, or occasionally at Company premises. The Company’s current volume of new and pending matters is substantially lower than it experienced at the peak of filings in 2003. The Company expects that filing of claims by unimpaired claimants in the future will continue to be at much lower levels than in the past. Accordingly, the number of claims alleging more serious injuries, including mesothelioma, other malignancies, and black lung disease, will represent a greater percentage of total claims than in the past. Over the past twenty respirator was defective and that 3M acted negligently in failing to protect him against asbestos fibers. The jury delivered a complete defense verdict in favor of 3M, concluding that the 8710 respirator was not defective in design or warnings and any conduct by 3M was not a cause of plaintiff’s mesothelioma. The plaintiff has filed a notice of appeal. 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. 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. In January 2020, the manufacturers filed a petition with the West Virginia Supreme Court, challenging the trial court’s rulings; that petition was denied in November 2020. No liability has been recorded for this matter because the Company believes that liability is not probable and 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, the otherwise minimal activity in this case, 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 jury may allocate to each defendant if the case were ultimately tried. Respirator Mask/Asbestos Liabilities and Insurance Receivables The Company regularly conducts a comprehensive legal review of its respirator mask/asbestos liabilities. The Company reviews recent and historical claims data, including without limitation, (i) the number of pending claims filed against the Company, (ii) the nature and mix of those claims (i.e., the proportion of claims asserting usage of the Company’s mask or respirator products and alleging exposure to each of asbestos, silica, coal or other occupational dusts, and claims pleading use of asbestos-containing products allegedly manufactured by the Company), (iii) the costs to defend and resolve pending claims, and (iv) trends in filing rates and in costs to defend and resolve claims, (collectively, the “Claims Data”). As part of its comprehensive legal review, the Company regularly provides the Claims Data to a third party with expertise in determining the impact of Claims Data on future filing trends and costs. The third party assists the Company in estimating the costs to defend and resolve pending and future claims. The Company uses these estimates to develop its best estimate of probable liability. Developments may occur that could affect the Company’s estimate of its liabilities. These developments include, but are not limited to, significant changes in (i) the key assumptions underlying the Company’s accrual, including, the number of future claims, the nature and mix of those claims, the average cost of defending and resolving claims, and in maintaining trial readiness (ii) trial and appellate outcomes, (iii) the law and procedure applicable to these claims, and (iv) the financial viability of other co-defendants and insurers. As a result of its review of its respirator mask/asbestos liabilities, of pending and expected lawsuits and of the cost of resolving claims of persons who claim more serious injuries, including mesothelioma, other malignancies, and black lung disease, the Company increased its accruals in 2020 for respirator mask/asbestos liabilities by a total of $120 million. In 2020, the Company made payments for legal defense costs and settlements of $66 million related to the respirator mask/asbestos litigation. During the first quarter of 2019, the Company recorded a pre-tax charge of $313 million in conjunction with an increase in the accrual as a result of the March and April 2019 settlements-in-principle of the coal mine dust lawsuits mentioned above and the Company’s assessment of other current and expected coal mine dust lawsuits (including the costs to resolve all current and expected coal mine dust lawsuits in Kentucky and West Virginia). As of December 31, 2020, the Company had an accrual for respirator mask/asbestos liabilities (excluding Aearo accruals) of $662 million. This accrual represents the Company’s best estimate of probable loss and reflects an estimation period for future claims that may be filed against the Company approaching the year 2050. The Company cannot estimate the amount or upper end of the range of amounts by which the liability may exceed the accrual the Company has established because of the (i) inherent difficulty in projecting the number of claims that have not yet been asserted or the time period in which future claims may be asserted, (ii) the complaints nearly always assert claims against multiple defendants where the damages alleged are typically not attributed to individual defendants so that a defendant’s share of liability may turn on the law of joint and several liability, which can vary by state, (iii) the multiple factors described above that the Company considers in estimating its liabilities, and (iv) the several possible developments described above that may occur that could affect the Company’s estimate of liabilities. As of December 31, 2020, the Company’s receivable for insurance recoveries related to the respirator mask/asbestos litigation was $4 million. 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. As of December 31, 2020, 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. As of December 31, 2020, the Company, through its Aearo subsidiary, had accruals of $28 million for product liabilities and defense costs related to current and future Aearo-related asbestos, silica-related and coal mine dust claims. This accrual represents the Company’s best estimate of Aearo’s probable loss and reflects an estimation period for future claims that may be filed against Aearo approaching the year 2050. The accrual was reduced by 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 substances, and the handling and disposal of solid and hazardous wastes enforceable by national, state, and local authorities around the world, and private parties in the United States and abroad. These laws and regulations provide, under certain circumstances, a basis for the remediation of contamination, for capital investment in pollution control equipment, for restoration of 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, typically with other companies, for the costs of remediation of environmental contamination at current or former facilities and at off-site locations. The Company has identified numerous locations, most of which are in the United States, at which it may have some liability. Please refer to the section entitled “ Environmental Liabilities and Insurance Receivables” Environmental Matters As previously reported, the Company has been voluntarily cooperating with ongoing reviews by local, state, federal (primarily the U.S. Environmental Protection Agency (EPA)), and international agencies of possible environmental and health effects of various perfluorinated compounds, including perfluorooctanoate (PFOA), perfluorooctane sulfonate (PFOS), perfluorohexane sulfonate (PFHxS), or other per- and polyfluoroalkyl substances (collectively PFAS). As a result of its phase-out decision in May 2000, the Company no longer manufactures certain PFAS compounds including PFOA, PFOS, PFHxS, and their pre-cursor compounds. The Company ceased manufacturing and using the vast majority of these compounds within approximately two years of the phase-out announcement and ceased all manufacturing and the last significant use of this chemistry by the end of 2008. The Company continues to manufacture a variety of shorter chain length PFAS compounds, including, but not limited to, pre-cursor compounds to perfluorobutane sulfonate (PFBS). These compounds are used as input materials to a variety of products, including engineered fluorinated fluids, fluoropolymers and fluorelastomers, as well as surfactants, additives, and coatings. Through its ongoing life cycle management and its raw material composition identification processes associated with the Company’s policies covering the use of all persistent and bio-accumulative materials, the Company continues to review, control or eliminate the presence of certain PFAS in purchased materials or as byproducts in some of 3M’s current fluorochemical manufacturing processes, products, and waste streams. Regulatory activities concerning PFAS continue in the United States, Europe and elsewhere, and before certain international bodies. These activities include gathering of exposure and use information, risk assessment, and consideration of regulatory approaches. In the European Union, where 3M has manufacturing facilities in countries such as Germany and Belgium, recent regulatory activities have included preliminary work on various restrictions under the Regulation concerning the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), including the restriction of PFAS in certain usages and a broader restriction of PFAS as a class. As of December 2020, PFOA is subject to certain restrictions under EU’s Persistent Organic Pollutants (POPs) Recast Regulation. In the United States, as the database of studies of both PFOA and PFOS has expanded, the EPA has developed human health effects documents summarizing the available data from these studies. In February 2014, the EPA initiated external peer review of its draft human health effects documents for PFOA and PFOS. The peer review panel met in August 2014. In May 2016, the EPA announced lifetime health advisory levels for PFOA and PFOS at 70 parts per trillion (ppt) (superseding the provisional levels established by the EPA in 2009 of 400 ppt for PFOA and 200 ppt for PFOS). Where PFOA and PFOS are found together, EPA recommends that the concentrations be added together, and the lifetime health advisory for PFOA and PFOS combined is also 70 ppt. Lifetime health advisories, which are non-enforceable and non-regulatory, provide information about concentrations of drinking water contaminants at which adverse health effects are not expected to occur over the specified exposure duration. To collect exposure information under the Safe Drinking Water Act, the EPA published on May 2, 2012 a list of unregulated substances, including six PFAS chemicals, required to be monitored during the period 2013-2015 by public water system suppliers to determine the extent of their occurrence. Through January 2017, the EPA reported results for 4,920 public water supplies nationwide. Based on the 2016 lifetime health advisory, 13 public water supplies exceed the level for PFOA and 46 exceed the level for PFOS (unchanged from the July 2016 EPA summary). A technical advisory issued by EPA in September 2016 on laboratory analysis of drinking water samples stated that 65 public water supplies had exceeded the combined level for PFOA and PFOS. These results are based on one or more samples collected during the period 2012-2015 and do not necessarily reflect current conditions of these public water supplies. EPA reporting does not identify the sources of the PFOA and PFOS in the public water supplies. The Company is continuing to make progress in its work, under the supervision of state regulators, to remediate historic disposal of PFAS-containing waste associated with manufacturing operations at its Decatur, Alabama; Cottage Grove, Minnesota; and Cordova, Illinois plants. As previously reported, the Company entered into a voluntary remedial action agreement with the Alabama Department of Environmental Management (ADEM) to remediate the presence of PFAS in the soil and groundwater at the Company’s manufacturing facility in Decatur, Alabama associated with the historic (1978-1998) incorporation of wastewater treatment plant sludge. With ADEM’s agreement, 3M substantially completed installation of a multilayer cap on the former sludge incorporation areas. Further remediation activities, including certain on-site and off-site investigations and studies, will be conducted in accordance with the July 2020 Interim Consent Order described below in the “Other PFAS-related Matters” section. The Company continues to work with the Minnesota Pollution Control Agency (MPCA) pursuant to the terms of the previously disclosed May 2007 Settlement Agreement and Consent Order to address the presence of certain PFAS in the soil and groundwater at former disposal sites in Washington County, Minnesota (Oakdale and Woodbury) and at the Company’s manufacturing facility at Cottage Grove, Minnesota. Under this agreement, the Company’s principal obligations include (i) evaluating releases of certain PFAS from these sites and proposing response actions; (ii) providing treatment or alternative drinking water upon identifying any level exceeding a Health Based Value (HBV) or Health Risk Limit (HRL) (i.e., the amount of a chemical in drinking water determined by the Minnesota Department of Health (MDH) to be safe for human consumption over a lifetime) for certain PFAS for which a HBV and/or HRL exists as a result of contamination from these sites; (iii) remediating identified sources of other PFAS at these sites that are not controlled by actions to remediate PFOA and PFOS; and (iv) sharing information with the MPCA about certain perfluorinated compounds. During 2008, the MPCA issued formal decisions adopting remedial options for the former disposal sites in Washington County, Minnesota (Oakdale and Woodbury). In August 2009, the MPCA issued a formal decision adopting remedial options for the Company’s Cottage Grove manufacturing facility. During the spring and summer of 2010, 3M began implementing the agreed upon remedial options at the Cottage Grove and Woodbury sites. 3M commenced the remedial option at the Oakdale site in late 2010. At each location the remedial options were recommended by the Company and approved by the MPCA. Remediation work has been completed at the Oakdale and Woodbury sites, and they are in an operational maintenance mode. Remediation work has been substantially completed at the Cottage Grove site, with operational and maintenance activities ongoing. In August 2014, the Illinois EPA approved a request by the Company to establish a groundwater management zone at its manufacturing facility in Cordova, Illinois, which includes ongoing pumping of impacted site groundwater, groundwater monitoring and routine reporting of results. In May 2017, the MDH issued new HBVs for PFOA and PFOS. The new HBVs are 35 ppt for PFOA and 27 ppt for PFOS. In connection with its announcement the MDH stated that “Drinking water with PFOA and PFOS, even at the levels above the updated values, does not represent an immediate health risk. These values are designed to reduce long-term health risks across the population and are based on multiple safety factors to protect the most vulnerable citizens, which makes them overprotective for most of the residents in our state.” In December 2017, the MDH issued a new HBV for perfluorobutane sulfonate (PFBS) of 2 parts per billion (ppb). In February 2018, the MDH published reports finding no unusual rates of certain cancers or adverse birth outcomes (low birth rates or premature births) among residents of Washington and Dakota Counties in Minnesota. In April 2019, the MDH issued a new HBV for PFOS of 15 ppt and a new HBV for PFHxS of 47 ppt. In May 2018, the EPA announced a four-step PFAS action plan, which includes evaluating the need to set Safe Drinking Water Act maximum contaminant levels (MCLs) for PFOA and PFOS and beginning the steps necessary to designate PFOA and PFOS as “hazardous substances” under CERCLA. In November 2018, the EPA asked for public comment on draft toxicity assessments for two PFAS compounds, including PFBS. In February 2019, the EPA issued a PFAS Action Plan that outlines short- and long-term actions the EPA is taking to address PFAS – actions that include developing a national drinking water determination for PFOA and PFOS, strengthening enforcement authorities and evaluating cleanup approaches, nationwide drinking water monitoring for PFAS, expanding scientific knowledge for understanding and managing risk from PFAS, and developing consistent risk communication tools for communicating with other agencies and the public. With respect to groundwater contaminated with PFOA and PFOS, the EPA issued interim recommendations in December 2019, providing guidance for screening levels and preliminary remediation goals for groundwater that is a current or potential drinking water source, to inform final clean-up levels of contaminated sites. In February 2020, the EPA provided notice and requested public comment on certain preliminary determinations to regulate PFOA and PFOS under the Safe Drinking Water Act (SDWA). In June 2020, 3M submitted comments on EPA’s preliminary determinations to regulate PFOA and PFOS under the SDWA. EPA announced in its Spring 2020 Regulatory Agenda, released in June 2020, that it intended to publish a notice of proposed rulemaking to designate PFOA and PFOS as hazardous substances under CERCLA in August 2020. In November 2020, EPA announced it was developing of a new analytical method to test for PFAS in wastewater and other environmental media. In December 2020, EPA released two new guidance documents related to PFAS. First, it issued a Draft Compliance Guide for Imported Articles Containing Surface Coatings Subject to the Long-Chain Perfluoroalkyl Carboxylate and Perfluoroalkyl Sulfonate Chemical Substances Significant New Use Rule. Second, EPA released for public comment interim guidance on destroying and disposing of certain PFAS and PFAS-containing materials. In Januar |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | NOTE 17. Leases The components of lease expense are as follows: Year ended December 31, (Millions) 2020 2019 Operating lease cost $ 348 $ 308 Finance lease cost: Amortization of assets 21 20 Interest on lease liabilities 1 2 Variable lease cost 101 93 Total net lease cost $ 471 $ 423 Short-term lease cost and income related to sub-lease activity is immaterial for the Company. Supplemental balance sheet information related to leases is as follows: Location on Face of As of December 31, (Millions unless noted) Balance Sheet 2020 2019 Operating leases: Operating lease right of use assets Operating lease right $ 864 $ 858 Current operating lease liabilities Operating lease liabilities - current $ 256 $ 247 Noncurrent operating lease liabilities Operating lease liabilities 609 607 Total operating lease liabilities $ 865 $ 854 Finance leases: Property and equipment, at cost Property, plant and equipment $ 225 $ 239 Accumulated amortization Property, plant and equipment (accumulated depreciation) (106) (102) Property and equipment, net $ 119 $ 137 Current obligations of finance leases Other current $ 22 $ 21 Finance leases, net of current obligations Other liabilities 93 111 Total finance lease liabilities $ 115 $ 132 Weighted average remaining lease term (in years): Operating leases 5.6 5.7 Finance leases 7.6 9.0 Weighted average discount rate: Operating leases 2.4 % 3.2 % Finance leases 3.5 % 3.8 % Supplemental cash flow and other information related to leases is as follows: Year Ended December 31, (Millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 326 $ 309 Operating cash flows from finance leases 1 2 Financing cash flows from finance leases 58 18 Right of use assets obtained in exchange for lease liabilities: Operating leases 250 326 Finance leases 18 61 In the first quarter of 2020, 3M sold and leased-back certain recently constructed machinery and equipment in return for municipal securities, which in aggregate, were recorded as a finance lease asset and obligation of approximately $10 million. In the first quarter of 2019, 3M sold and leased-back certain recently constructed machinery and equipment in return for municipal securities, which in aggregate, were recorded as a finance lease asset Maturities of lease liabilities were as follows: December 31, 2020 (Millions) Finance Leases Operating Leases 2021 $ 20 $ 273 2022 18 201 2023 18 141 2024 16 93 2025 10 60 After 2025 41 162 Total $ 123 $ 930 Less: Amounts representing interest 8 65 Present value of future minimum lease 115 865 Less: Current obligations 22 256 Long-term obligations $ 93 $ 609 As of December 31, 2020, the Company has additional operating lease commitments that have not yet commenced of approximately $18 million. These commitments pertain to 3M’s right of use of certain buildings. Disclosures related to periods prior to 2019 adoption of new lease standard: Capital and Operating Leases: Rental expense under operating leases was $393 million in 2018. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation | |
Stock-Based Compensation | NOTE 18. Stock-Based Compensation The 3M 2016 Long-Term Incentive Plan provides for the issuance or delivery of up to 123,965,000 shares of 3M common stock pursuant to awards granted under the plan. Awards may be issued in the form of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock awards, and performance units and performance shares. As of December 31, 2020, the remaining shares available for grant under the LTIP Program are 16 million and there were approximately 8,000 participants with outstanding options, restricted stock, or restricted stock units. The Company’s annual stock option and restricted stock unit grant is made in February to provide a strong and immediate link between the performance of individuals during the preceding year and the size of their annual stock compensation grants. The grant to eligible employees uses the closing stock price on the grant date. Accounting rules require recognition of expense under a non- substantive vesting period approach, requiring compensation expense recognition when an employee is eligible to retire. Employees are considered eligible to retire at age 55 and after having completed ten years of service. This retiree-eligible population represents 35 percent of the annual grant’s stock-based compensation expense; therefore, higher stock-based compensation expense is recognized in the first quarter. In addition to the annual grants, the Company makes other minor grants of stock options, restricted stock units and other stock-based grants. The Company issues cash settled restricted stock units and stock appreciation rights in certain countries. These grants do not result in the issuance of common stock and are considered immaterial by the Company. Amounts recognized in the financial statements with respect to stock-based compensation programs, which include stock options, restricted stock, restricted stock units, performance shares and the General Employees’ Stock Purchase Plan (GESPP), are provided in the following table. Capitalized stock-based compensation amounts were not material. Stock-Based Compensation Expense Years ended December 31 (Millions) 2020 2019 2018 Cost of sales $ 50 $ 47 $ 48 Selling, general and administrative expenses 169 185 207 Research, development and related expenses 43 46 47 Stock-based compensation expenses $ 262 $ 278 $ 302 Income tax benefits (82) (141) (154) Stock-based compensation expenses (benefits), net of tax $ 180 $ 137 $ 148 Stock Option Program The following table summarizes stock option activity for the years ended December 31: 2020 2019 2018 Weighted Weighted Weighted Number of Average Number of Average Number of Average (Options in thousands) Options Exercise Price Options Exercise Price Options Exercise Price Under option — January 1 33,675 $ 151.15 34,569 $ 138.98 34,965 $ 125.73 Granted 4,777 157.25 3,434 200.80 3,211 233.19 Exercised (2,759) 93.23 (4,193) 89.89 (3,482) 91.01 Forfeited (292) 181.33 (135) 201.27 (125) 188.00 December 31 35,401 $ 156.23 33,675 $ 151.15 34,569 $ 138.98 Options exercisable December 31 27,537 $ 149.67 26,487 $ 136.75 26,117 $ 121.98 Stock options generally vest over a period from one The total intrinsic values of stock options exercised during 2020, 2019 and 2018 was $206 million, $433 million and $469 million, respectively. Cash received from options exercised during 2020, 2019 and 2018 was $256 million, $375 million and $316 million, respectively. The Company’s actual tax benefits realized for the tax deductions related to the exercise of employee stock options for 2020, 2019 and 2018 was $44 million, $91 million and $99 million, respectively. For the primary annual stock option grant, the weighted average fair value at the date of grant was calculated using the Black-Scholes option-pricing model and the assumptions that follow. Stock Option Assumptions Annual 2020 2019 2018 Exercise price $ 157.24 $ 201.12 $ 233.63 Risk-free interest rate 1.5 % 2.6 % 2.7 % Dividend yield 2.7 % 2.5 % 2.4 % Expected volatility 19.7 % 20.4 % 21.0 % Expected life (months) 78 79 78 Black-Scholes fair value $ 21.58 $ 34.19 $ 41.59 Expected volatility is a statistical measure of the amount by which a stock price is expected to fluctuate during a period. For the 2020 annual grant date, the Company estimated the expected volatility based upon the following three volatilities of 3M stock: the median of the term of the expected life rolling volatility; the median of the most recent term of the expected life volatility; and the implied volatility on the grant date. The expected term assumption is based on the weighted average of historical grants. Restricted Stock and Restricted Stock Units The following table summarizes restricted stock and restricted stock unit activity for the years ended December 31: 2020 2019 2018 Weighted Weighted Weighted Average Average Average Number of Grant Date Number of Grant Date Number of Grant Date (Shares in thousands) Shares Fair Value Shares Fair Value Shares Fair Value Nonvested balance — As of January 1 1,573 $ 201.11 1,789 $ 180.02 1,994 $ 162.60 Granted Annual 733 157.29 564 200.41 467 233.61 Other 45 159.49 15 180.08 8 207.76 Vested (570) 176.20 (732) 149.33 (640) 164.83 Forfeited (59) 196.31 (63) 192.52 (40) 186.48 As of December 31 1,722 $ 189.78 1,573 $ 201.11 1,789 $ 180.02 As of December 31, 2020, there was $79 million of compensation expense that has yet to be recognized related to non-vested restricted stock and restricted stock units. This expense is expected to be recognized over the remaining weighted-average vesting period of 23 months. The total fair value of restricted stock and restricted stock units that vested during December 31, 2020, 2019 and 2018 was $91 million, $144 million and $155 million, respectively. The Company’s actual tax benefits realized for the tax deductions related to the vesting of restricted stock and restricted stock units for 2020, 2019 and 2018 was $26 million, $28 million and $29 million, respectively. Restricted stock units granted generally vest three years following the grant date assuming continued employment. Dividend equivalents equal to the dividends payable on the same number of shares of 3M common stock accrue on these restricted stock units during the vesting period, although no dividend equivalents are paid on any of these restricted stock units that are forfeited prior to the vesting date. Dividends are paid out in cash at the vest date on restricted stock units. Since the rights to dividends are forfeitable, there is no impact on basic earnings per share calculations. Weighted average restricted stock unit shares outstanding are included in the computation of diluted earnings per share. Performance Shares Instead of restricted stock units, the Company makes annual grants of performance shares to members of its executive management. The 2020 performance criteria for these performance shares (organic volume growth, return on invested capital, free cash flow conversion, and earnings per share growth) were selected because the Company believes that they are important drivers of long-term stockholder value. The number of shares of 3M common stock that could actually be delivered at the end of the three-year performance period may be anywhere from 0% to 200% of each performance share granted, depending on the performance of the Company during such performance period. When granted, these performance shares are awarded at 100% of the estimated number of shares at the end of the three-year performance period and are reflected under “Granted” in the table below. Non-substantive vesting requires that expense for the performance shares be recognized over one The following table summarizes performance share activity for the years ended December 31: 2020 2019 2018 Weighted Weighted Weighted Average Average Average Number of Grant Date Number of Grant Date Number of Grant Date (Shares in thousands) Shares Fair Value Shares Fair Value Shares Fair Value Undistributed balance — As of January 1 444 $ 205.58 562 $ 188.96 686 $ 171.90 Granted 203 153.16 166 207.49 166 229.13 Distributed (206) 190.84 (210) 162.16 (206) 159.82 Performance change 25 166.49 (48) 204.73 (56) 198.39 Forfeited (43) 172.92 (26) 209.96 (28) 204.09 As of December 31 423 $ 188.61 444 $ 205.58 562 $ 188.96 As of December 31, 2020, there was $17 million of compensation expense that has yet to be recognized related to performance shares. This expense is expected to be recognized over the remaining weighted-average earnings period of 20 months. The total fair value of performance shares that were distributed were $35 million, $45 million, and $48 million for 2020, 2019 and 2018, respectively. The Company’s actual tax benefits realized for the tax deductions related to the distribution of performance shares were $7 million, $9 million, and $11 million per year for 2020, 2019, and 2018, respectively. General Employees’ Stock Purchase Plan (GESPP): As of December 31, 2020, shareholders have approved 60 million shares for issuance under the Company’s GESPP. Substantially all employees are eligible to participate in the plan. Participants are granted options at 85% of market value at the date of grant. There are no GESPP shares under option at the beginning or end of each year because options are granted on the first business day and exercised on the last business day of the same month. The weighted-average fair value per option granted during 2020, 2019 and 2018 was $23.47, $27.14 and $31.91, respectively. The fair value of GESPP options was based on the 15% purchase price discount. The Company recognized compensation expense for GESSP options of $31 million in 2020, $30 million in 2019, and $30 million in 2018. |
Business Segments and Geographi
Business Segments and Geographic Information | 12 Months Ended |
Dec. 31, 2020 | |
Business Segments and Geographic Information | |
Business Segments and Geographic Information | NOTE 19. Business Segments and Geographic Information 3M’s businesses are organized, managed and internally grouped into segments based on differences in markets, products, technologies and services. 3M manages its operations in four business segments: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer. 3M’s four business segments bring together common or related 3M technologies, enhancing the development of innovative products and services and providing for efficient sharing of business resources. Transactions among reportable segments are recorded at cost. 3M is an integrated enterprise characterized by substantial intersegment cooperation, cost allocations and inventory transfers. Therefore, management does not represent that these segments, if operated independently, would report the operating income information shown. Effective in the second quarter of 2020, the measure of segment operating performance used by 3M’s chief operating decision maker (CODM) changed and, as a result, 3M’s disclosed measure of segment profit/loss (business segment operating income) has been updated for all periods presented. The change to business segment operating income aligns with the update to how the CODM assesses performance and allocates resources for the Company’s business segments. 3M discloses business segment operating income as its measure of segment profit/loss, reconciled to both total 3M operating income and income before taxes. Business segment operating income includes dual credit for certain related operating income (as described below in “Elimination of Dual Credit”). Business segment operating income excludes certain expenses and income that are not allocated to business segments (as described below in “Corporate and Unallocated”). Additionally, the following special items are excluded from business segment operating income and, instead, are included within Corporate and Unallocated: significant litigation-related charges/benefits, gain/loss on sale of businesses (see Note 3), and divestiture-related restructuring actions (see Note 5). In addition, effective in the first quarter of 2020, in a continuing effort to improve the alignment of its businesses around customers and markets, the Company made the following changes: Continued alignment of customer account activity ● As part of 3M’s regular customer-focus initiatives, the Company realigned certain customer account activity (“sales district”) to correlate with the primary divisional product offerings in various countries and reduce complexity for customers when interacting with multiple 3M businesses. This largely impacted the amount of dual credit certain business segments receive as a result of sales district attribution. 3M business segment reporting measures include dual credit to business segments for certain sales and operating income. This dual credit is based on which business segment provides customer account activity with respect to a particular product sold in a specific country. As a result of this change, previously reported aggregate business segment net sales and operating income for the total year 2019 decreased $42 million and $10 million, respectively, offset by corresponding decreases in the “Elimination of Dual Credit” net sales and operating income amounts. Additional actions impacting product line alignments ● The remaining retail auto care product lines formerly in the Automotive Aftermarket Division (within the Safety and Industrial business segment), were realigned to the Construction and Home Improvement Division (within the Consumer business segment). This change resulted in a decrease of previously reported net sales and operating income for total year 2019 of $35 million and $11 million, respectively, in the Safety and Industrial business segment, offset by a corresponding increase in net sales and operating income within the Consumer business segment. ● In addition, certain product lines were realigned within business segments. The transdermal drug delivery components business, formerly included in the Drug Delivery Systems Division, was realigned to the Medical Solutions Division (both of which are within the Health Care business segment) and the paint protection film business, formerly included in the Automotive and Aerospace Division, was realigned to the Commercial Solutions Division (both of which are within the Transportation and Electronics business segment). The financial information presented herein reflects the impact of the preceding business segment reporting changes for all periods presented. Business Segment Products Business Segment Representative revenue-generating activities, products or services Safety and Industrial o Industrial abrasives and finishing for metalworking applications o Autobody repair solutions o Closure systems for personal hygiene products, masking, and packaging materials o Electrical products and materials for construction and maintenance, power distribution and electrical OEMs o Structural adhesives and tapes o Respiratory, hearing, eye and fall protection solutions o Natural and color-coated mineral granules for shingles Transportation and Electronics o Advanced ceramic solutions o Attachment tapes, films, sound and temperature management for transportation vehicles o Premium large format graphic films for advertising and fleet signage o Light management films and electronics assembly solutions o Packaging and interconnection solutions o Reflective signage for highway, and vehicle safety Health Care o Food safety indicator solutions o Health care procedure coding and reimbursement software o Skin, wound care, and infection prevention products and solutions o Dentistry and orthodontia solutions o Filtration and purification systems Consumer o Consumer bandages, braces, supports and consumer respirators o Cleaning products for the home o Retail abrasives, paint accessories, car care DIY products, picture hanging and consumer air quality solutions o Stationery products Business Segment Information Year ended December 31, Net Sales (Millions) 2020 2019 2018 Safety and Industrial $ 11,767 $ 11,514 $ 12,414 Transportation and Electronics 8,827 9,591 10,104 Health Care 8,345 7,431 6,821 Consumer 5,336 5,151 5,127 Corporate and Unallocated (1) 110 50 Elimination of Dual Credit (2,090) (1,661) (1,751) Total Company $ 32,184 $ 32,136 $ 32,765 Operating Performance (Millions) Safety and Industrial $ 3,054 $ 2,510 $ 2,860 Transportation and Electronics 1,927 2,221 2,643 Health Care 1,828 1,858 1,918 Consumer 1,249 1,124 1,084 Elimination of Dual Credit (534) (409) (436) Total business segment operating income $ 7,524 $ 7,304 $ 8,069 Corporate and Unallocated Special items: Significant litigation-related (charges)/benefits $ (17) $ (762) $ (897) Gain/(loss) on sale of businesses 389 114 547 Divestiture-related restructuring actions (55) — (127) Other corporate expense - net (680) (482) (385) Total Corporate and Unallocated (363) (1,130) (862) Total Company operating income $ 7,161 $ 6,174 $ 7,207 Other expense/(income), net 450 462 207 Income before income taxes $ 6,711 $ 5,712 $ 7,000 Business Segment Information Assets Depreciation & Amortization Capital Expenditures (Millions) 2020 2019 2020 2019 2018 2020 2019 2018 Safety and Industrial $ 11,711 $ 11,682 $ 562 $ 509 $ 493 $ 451 $ 391 $ 375 Transportation and Electronics 6,997 6,871 429 401 390 454 390 339 Health Care 14,531 14,790 626 392 262 251 264 245 Consumer 2,567 2,428 140 134 126 120 130 115 Corporate and Unallocated 11,538 8,888 154 157 217 225 524 503 Total Company $ 47,344 $ 44,659 $ 1,911 $ 1,593 $ 1,488 $ 1,501 $ 1,699 $ 1,577 Assets subject to attribution to business segments largely include accounts receivable; inventories; property, plant and equipment; goodwill; intangible assets; and certain limited other assets. All other items are reflected in Corporate and Unallocated. Accounts receivable and inventory are attributed based on underlying sales or activity. Property, plant and equipment are attributed to a particular business segment based on that item’s primary user while certain items such as corporate-shared headquarters/administrative centers, laboratories, distribution centers and enterprise software systems are reflected in Corporate and Unallocated. Intangible assets and goodwill are largely directly associated with a particular reporting unit and attributed on that basis. Business segment depreciation reflected above is based on the underlying usage of assets (while the particular asset itself may be entirely reflected within a different business segment’s asset balance as its primary user). This depreciation also includes allocated depreciation associated with a number of the assets reflected in Corporate and Unallocated as described above. During 2020, information relative to business segment depreciation and assets reviewed by 3M’s CODM changed. The change did not impact each segment’s operating income, but did change the separate summarization of depreciation by segment in CODM information. Depreciation previously was summarized based generally on depreciation of a particular asset being associated entirely with a single reporting unit, as opposed to an estimate of underlying asset usage. New CODM reporting of depreciation is as described above. With respect to assets in CODM reporting, previously certain assets used by multiple segments were “split” in terms of determining the balances associated with each business segment (new reporting aligns the entire asset to a single primary user), certain shared manufacturing assets were retained in Corporate and Unallocated, and a number of other assets were allocated to the business segments. The impact of these changes has been reflected in the above table for all periods presented. Corporate and Unallocated Corporate and unallocated operating income includes a variety of miscellaneous items, such as corporate investment gains and losses, certain derivative gains and losses, certain insurance-related gains and losses, certain litigation and environmental expenses, corporate restructuring charges and certain under- or over-absorbed costs (e.g. pension, stock-based compensation) that the Company may choose not to allocate directly to its business segments and is disclosed as ‘other corporate expense-net”. Additionally, Corporate and Unallocated includes special items such as significant litigation-related charges/benefits, gain/loss on sale of businesses (see Note 3), and divestiture-related restructuring costs (see Note 5). Corporate and Unallocated also includes sales, costs, and income from contract manufacturing, transition services and other arrangements with the acquirer of all of the Communication Markets Division following its 2018 divestiture through 2019 and the acquirer of the former drug delivery business following its 2020 divestiture. Because this category includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis. Elimination of Dual Credit 3M business segment reporting measures include dual credit to business segments for certain sales and related operating income. Management evaluates each of its four business segments based on net sales and operating income performance, including dual credit reporting to further incentivize sales growth. As a result, 3M reflects additional (“dual”) credit to another business segment when the customer account activity (“sales district”) with respect to the particular product sold to the external customer is provided by a different business segment. This additional dual credit is largely reflected at the division level. For example, privacy screen protection products are primarily sold by the Display Materials and Systems Division within the Transportation and Electronics business segment; however, certain sales districts within the Consumer business segment provide the customer account activity for sales of the product to particular customers. In this example, the non-primary selling segment (Consumer) would also receive credit for the associated net sales initiated through its sales district and the related approximate operating income. The assigned operating income related to dual credit activity may differ from operating income that would result from actual costs associated with such sales. The offset to the dual credit business segment reporting is reflected as a reconciling item entitled “Elimination of Dual Credit,” such that sales and operating income in total are unchanged. Geographic Information Geographic area information is used by the Company as a secondary performance measure to manage its businesses. Export sales and certain income and expense items are generally reported within the geographic area where the final sales to 3M customers are made. Refer to Note 2 for geographic net sales. Property, Plant and Equipment - net (Millions) 2020 2019 Americas $ 5,752 $ 5,873 Asia Pacific 1,662 1,637 Europe, Middle East and Africa 2,007 1,823 Total Company $ 9,421 $ 9,333 United States net property, plant and equipment (PP&E) was $5,358 and $5,442 million at December 31, 2020 and 2019, respectively. China/Hong Kong net property, plant and equipment (PP&E) was $583 million and $553 million at December 31, 2020 and 2019, respectively. |
Quarterly Data (Unaudited)
Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Data (Unaudited) | |
Quarterly Data (Unaudited) | NOTE 20. Quarterly Data (Unaudited) (Millions, except per-share amounts) First Second Third Fourth Year 2020 Quarter Quarter Quarter Quarter 2020 Net sales $ 8,075 $ 7,176 $ 8,350 $ 8,583 $ 32,184 Cost of sales 4,109 3,805 4,303 4,388 16,605 Net income including noncontrolling interest 1,294 1,287 1,417 1,390 5,388 Net income attributable to 3M 1,292 1,290 1,413 1,389 5,384 Earnings per share attributable to 3M common shareholders - basic 2.24 2.24 2.45 2.40 9.32 Earnings per share attributable to 3M common shareholders - diluted 2.22 2.22 2.43 2.38 9.25 (Millions, except per-share amounts) First Second Third Fourth Year 2019 Quarter Quarter Quarter Quarter 2019 Net sales $ 7,863 $ 8,171 $ 7,991 $ 8,111 $ 32,136 Cost of sales 4,310 4,313 4,188 4,325 17,136 Net income including noncontrolling interest 893 1,131 1,588 970 4,582 Net income attributable to 3M 891 1,127 1,583 969 4,570 Earnings per share attributable to 3M common shareholders - basic 1.54 1.95 2.75 1.68 7.92 Earnings per share attributable to 3M common shareholders - diluted 1.51 1.92 2.72 1.66 7.81 Gross profit is calculated as net sales minus cost of sales. In the first quarter of 2020, 3M recorded a net pre-tax charge of $17 million ($13 million after tax) related to PFAS (certain perfluorinated compounds) matters. The charge was more than offset by a reduction in tax expense of $52 million related to resolution of tax treatment with authorities regarding the previously disclosed 2018 agreement reached with the State of Minnesota that resolved the Natural Resources Damages (NRD) lawsuit. These items, in aggregate, resulted in a $39 million after tax benefit, or $0.07 per diluted share. Also, in the second quarter of 2020, the Company recorded an aggregate after tax gain on sale of businesses of $303 million, or $0.52 per diluted share in addition to divestiture-related restructuring charges of $46 million, or $0.08 per diluted share. In 2019, the Company recorded significant litigation-related charges related to PFAS matters and coal mine dust respirator mask lawsuits as further described in Note 16, which reduced net income by $590 million, or $1.01 per diluted share, of which $424 million, or $0.72 per diluted share occurred in the first quarter and $166 million, or $0.29 per diluted share occurred in the fourth quarter. Additionally, in 2019, the Company recorded an aggregate after tax gain on sale of businesses of $129 million, or $0.22 per diluted share. In the second quarter of 2019, the Company recorded a non-operating charge related to the deconsolidation of its Venezuelan subsidiary, which reduced net income by $162 million, or $0.28 per diluted share. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies | |
Consolidation | Consolidation: |
Basis of presentation | Basis of presentation: As described in Note 19, effective in the first quarter of 2020, the Company changed its business segment reporting in its continuing effort to improve the alignment of businesses around markets and customers. Additionally, the Company consolidated the way it presents geographic area net sales by providing an aggregate Americas geographic region (combining former United States and Latin America and Canada areas). Also, effective in the second quarter of 2020, the measure of segment operating performance used by 3M’s chief operating decision maker changed and, as a result, the Company’s disclosed measure of segment profit/loss has been updated. Information provided herein reflects the impact of these changes for all periods presented. |
Foreign currency translation | Foreign currency translation: 3M had a consolidating subsidiary in Venezuela, the financial statements of which were remeasured as if its functional currency were that of its parent because Venezuela’s economic environment is considered highly inflationary. The operating income of this subsidiary was immaterial as a percent of 3M’s consolidated operating income for the periods presented. In light of circumstances, including the country’s unstable environment and heightened unrest leading to sustained lack of demand, and expectation that these circumstances will continue for the foreseeable future, during May 2019, 3M concluded it no longer met the criteria of control in order to continue consolidating its Venezuelan operations. As a result, as of |
Use of estimates | Use of estimates: |
Cash and cash equivalents | Cash and cash equivalents: |
Marketable securities | Marketable securities: availability for use in current operations. 3M reviews impairments associated with its marketable securities in accordance with the measurement guidance provided by ASC 320, Investments-Debt Securities and ASC 326-30, Available-for-Sale Debt Securities, when determining whether a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. An impairment relating to credit losses is recorded through an allowance for credit losses. The allowance is limited by the amount that the fair value is less than the amortized cost basis. A change in the allowance for credit losses is recorded into earnings in the period of the change. Any impairment that has not been recorded through an allowance for credit losses is recorded through accumulated other comprehensive income as a component of shareholders’ equity. The factors considered in determining whether a credit loss exists can include the extent to which fair value is less than the amortized cost basis, changes in the credit quality of the underlying loan obligors, credit ratings actions, as well as other factors. When a credit loss exists, the Company compares the present value of cash flows expected to be collected from the debt security with the amortized cost basis of the security to determine what allowance amount, if any, should be recorded. Amounts are reclassified out of accumulated other comprehensive income and into earnings upon sale or a change in the portions of impairment related to credit losses and not related to credit losses. |
Investments | Investments: |
Other assets | Other assets: |
Inventories | Inventories: |
Property, plant and equipment | Property, plant and equipment: ten twenty three five |
Conditional asset retirement obligations | Conditional asset retirement obligations: |
Goodwill | Goodwill: tested for impairment between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is done at a reporting unit level, with all goodwill assigned to a reporting unit. Reporting units are one level below the business segment level, but are required to be combined when reporting units within the same segment have similar economic characteristics. 3M did not combine any of its reporting units for impairment testing. The impairment loss is measured as the amount by which the carrying value of the reporting unit’s net assets exceeds its estimated fair value, not to exceed the carrying value of the reporting unit’s goodwill. The estimated fair value of a reporting unit is determined using earnings for the reporting unit multiplied by a price/earnings ratio for comparable industry groups or by using a discounted cash flow analysis. Companies have the option to first assess qualitative factors to determine whether the fair value of a reporting unit is not “more likely than not” less than its carrying amount, which is commonly referred to as “Step 0”. 3M has chosen not to apply Step 0 for its annual goodwill assessments. |
Intangible assets | Intangible assets: four ten seven four six five Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss is recognized when the carrying amount exceeds the estimated undiscounted cash flows from the asset’s or asset group’s ongoing use and eventual disposition. If an impairment is identified, the amount of the impairment loss recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. Intangible assets with an indefinite life, namely certain tradenames, are not amortized. Indefinite-lived intangible assets are tested for impairment annually, and are tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount may be impaired. An impairment loss would be recognized when the fair value is less than the carrying value of the indefinite-lived intangible asset. |
Restructuring actions | Restructuring actions: |
Revenue (sales) recognition | Revenue (sales) recognition: The Company recognizes revenue in light of the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts with when legal title, physical possession and risks and rewards of goods/services transfers to the customer. In limited arrangements, control transfers over time as the customer simultaneously receives and consumes the benefits as 3M completes the performance obligation(s). Revenue is recognized at the transaction price which the Company expects to be entitled. When determining the transaction price, 3M estimates variable consideration applying the portfolio approach practical expedient under ASC 606. The main sources of variable consideration for 3M are customer rebates, trade promotion funds, and cash discounts. These sales incentives are recorded as a reduction to revenue at the time of the initial sale using the most-likely amount estimation method. The most-likely amount method is based on the single most likely outcome from a range of possible consideration outcomes. The range of possible consideration outcomes are primarily derived from the following inputs: sales terms, historical experience, trend analysis, and projected market conditions in the various markets served. Because 3M serves numerous markets, the sales incentive programs offered vary across businesses, but the most common incentive relates to amounts paid or credited to customers for achieving defined volume levels or growth objectives. There are no material instances where variable consideration is constrained and not recorded at the initial time of sale. Free goods are accounted for as an expense and recorded in cost of sales. Product returns are recorded as a reduction to revenue based on anticipated sales returns that occur in the normal course of business. 3M primarily has assurance-type warranties that do not result in separate performance obligations. Sales, use, value-added, and other excise taxes are not recognized in revenue. The Company has elected to present revenue net of sales taxes and other similar taxes. For substantially all arrangements recognized over time, the Company applies the “right to invoice” practical expedient. As a result, 3M recognizes revenue at the invoice amount when the entity has a right to invoice a customer at an amount that corresponds directly with the value to the customer of the Company’s performance completed to date. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using 3M’s best estimate of the standalone selling price of each distinct good or service in the contract. The Company did not recognize any material revenue in the current reporting period for performance obligations that were fully satisfied in previous periods. The Company does not have material unfulfilled performance obligation balances for contracts with an original length greater than one year in any years presented. Additionally, the Company does not have material costs related to obtaining a contract with amortization periods greater than one year for any year presented. 3M applies ASC 606 utilizing the following allowable exemptions or practical expedients: ● Exemption to not disclose the unfulfilled performance obligation balance for contracts with an original length of one year or less. ● Practical expedient relative to costs of obtaining a contract by expensing sales commissions when incurred because the amortization period would have been one year or less. ● Portfolio approach practical expedient relative to estimation of variable consideration. ● “Right to invoice” practical expedient based on 3M’s right to invoice the customer at an amount that reasonably represents the value to the customer of 3M’s performance completed to date. ● Election to present revenue net of sales taxes and other similar taxes. ● Sales-based royalty exemption permitting future intellectual property out-licensing royalty payments to be excluded from the otherwise required remaining performance obligations disclosure The Company recognizes revenue from the rental of durable medical devices in accordance with the guidance of ASC 842, Leases |
Accounts receivable and allowances | Accounts receivable and allowances: allowances for bad debts as well as the provision for credit losses, write-off activity and recoveries for the periods presented are not material. The Company does not have any significant off-balance-sheet credit exposure related to its customers. The Company has long-term customer receivables that do not have significant credit risk, and the origination dates of which are typically not older than five years. These long-term receivables are subject to an allowance methodology similar to other receivables. |
Advertising and merchandising | Advertising and merchandising: |
Research, development, and related expenses | Research, development and related expenses: |
Internal-use software | Internal-use software: three |
Environmental | Environmental: |
Income taxes | Income taxes: Income Taxes |
Earnings per share | Earnings per share: Earnings Per Share Computations (Amounts in millions, except per share amounts) 2020 2019 2018 Numerator: Net income attributable to 3M $ 5,384 $ 4,570 $ 5,349 Denominator: Denominator for weighted average 3M common shares outstanding – 577.6 577.0 588.5 Dilution associated with the Company’s stock-based compensation plans 4.6 8.1 13.5 Denominator for weighted average 3M common shares outstanding – 582.2 585.1 602.0 Earnings per share attributable to 3M common shareholders – $ 9.32 $ 7.92 $ 9.09 Earnings per share attributable to 3M common shareholders – $ 9.25 $ 7.81 $ 8.89 |
Stock-based compensation | Stock-based compensation: |
Comprehensive income | Comprehensive income: |
Derivatives and hedging activities | Derivatives and hedging activities: Derivatives and Hedging |
Credit risk | Credit risk: |
Fair value measurements | Fair value measurements: Fair Value Measurements and Disclosures amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The standard also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Acquisitions | Acquisitions: Business Combinations |
Leases | Leases: After adoption of ASU 2016-02 and related standards in 2019, operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is 3M’s incremental borrowing rate or, if available, the rate implicit in the lease. 3M determines the incremental borrowing rate for leases using a portfolio approach based primarily on the lease term and the economic environment of the applicable country or region. As a lessee, the Company leases distribution centers, office space, land, and equipment. Certain 3M lease agreements include rental payments adjusted annually based on changes in an inflation index. 3M’s leases do not contain material residual value guarantees or material restrictive covenants. Lease expense is recognized on a straight-line basis over the lease term. Certain leases include one or more extend lease term For the measurement and classification of its lease agreements, 3M groups lease and non-lease components into a single lease component for all underlying asset classes. Variable lease payments primarily include payments for non-lease components, such as maintenance costs, payments for leased assets used beyond their noncancelable lease term as adjusted for contractual options to terminate or renew, and payments for non-components such as sales tax. Certain 3M leases contain immaterial variable lease payments based on number of units produced. |
New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). In January 2020, the FASB issued ASU No. 2020-01, Clarifying the Interactions between Topic 321, Investments—Equity Securities, Topic 323, Investments—Equity Method and Joint Ventures, and Topic 815, Derivatives and Hedging In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Scope its debt securities, bank facilities, and derivative instruments and continues to evaluate commercial contracts that may utilize LIBOR as the reference rate. 3M will continue its assessment and monitor regulatory developments during the LIBOR transition period. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies | |
Earnings Per Share Computations | Earnings Per Share Computations (Amounts in millions, except per share amounts) 2020 2019 2018 Numerator: Net income attributable to 3M $ 5,384 $ 4,570 $ 5,349 Denominator: Denominator for weighted average 3M common shares outstanding – 577.6 577.0 588.5 Dilution associated with the Company’s stock-based compensation plans 4.6 8.1 13.5 Denominator for weighted average 3M common shares outstanding – 582.2 585.1 602.0 Earnings per share attributable to 3M common shareholders – $ 9.32 $ 7.92 $ 9.09 Earnings per share attributable to 3M common shareholders – $ 9.25 $ 7.81 $ 8.89 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue | |
Schedule of disaggregated revenue recognized during the period | Year ended December 31, Net Sales (Millions) 2020 2019 2018 Abrasives $ 1,180 $ 1,387 $ 1,512 Automotive Aftermarket 1,102 1,229 1,356 Closure and Masking Systems 993 1,111 1,224 Communication Markets — — 175 Electrical Markets 1,121 1,200 1,244 Industrial Adhesives and Tapes 2,562 2,689 2,841 Personal Safety 4,433 3,504 3,601 Roofing Granules 390 366 353 Other Safety and Industrial (14) 28 108 Total Safety and Industrial Business Segment $ 11,767 $ 11,514 $ 12,414 Advanced Materials $ 1,036 $ 1,245 $ 1,236 Automotive and Aerospace 1,612 1,913 2,074 Commercial Solutions 1,529 1,785 1,863 Electronics 3,767 3,711 3,971 Transportation Safety 890 943 951 Other Transportation and Electronics (7) (6) 9 Total Transportation and Electronics Business Segment $ 8,827 $ 9,591 $ 10,104 Drug Delivery $ 146 $ 372 $ 407 Food Safety 342 341 328 Health Information Systems 1,140 1,177 837 Medical Solutions 4,787 3,439 3,073 Oral Care 1,076 1,321 1,353 Separation and Purification Sciences 853 791 817 Other Health Care 1 (10) 6 Total Health Care Business Group $ 8,345 $ 7,431 $ 6,821 Consumer Health Care $ 366 $ 379 $ 389 Home Care 1,066 991 1,013 Home Improvement 2,527 2,297 2,216 Stationery and Office 1,223 1,378 1,399 Other Consumer 154 106 110 Total Consumer Business Group $ 5,336 $ 5,151 $ 5,127 Corporate and Unallocated $ (1) $ 110 $ 50 Elimination of Dual Credit (2,090) (1,661) (1,751) Total Company $ 32,184 $ 32,136 $ 32,765 Year ended December 31, 2020 Net Sales (Millions) Americas Asia Pacific Europe, Middle East and Africa Other Unallocated Worldwide Safety and Industrial $ 6,177 $ 2,805 $ 2,791 $ (6) $ 11,767 Transportation and Electronics 2,455 5,097 1,282 (7) 8,827 Health Care 5,062 1,478 1,809 (4) 8,345 Consumer 3,832 939 567 (2) 5,336 Corporate and Unallocated (1) — — — (1) Elimination of Dual Credit (1,000) (750) (340) — (2,090) Total Company $ 16,525 $ 9,569 $ 6,109 $ (19) $ 32,184 Year ended December 31, 2019 Net Sales (Millions) Americas Asia Pacific Europe, Middle East and Africa Other Unallocated Worldwide Safety and Industrial $ 6,008 $ 2,844 $ 2,666 $ (4) $ 11,514 Transportation and Electronics 2,901 5,221 1,472 (3) 9,591 Health Care 4,200 1,490 1,743 (2) 7,431 Consumer 3,641 952 559 (1) 5,151 Corporate and Unallocated 109 — 1 — 110 Elimination of Dual Credit (735) (711) (215) — (1,661) Total Company $ 16,124 $ 9,796 $ 6,226 $ (10) $ 32,136 Year ended December 31, 2018 Net Sales (Millions) Americas Asia Pacific Europe, Middle East and Africa Other Unallocated Worldwide Safety and Industrial $ 6,345 $ 3,076 $ 2,996 $ (3) $ 12,414 Transportation and Electronics 3,015 5,513 1,577 (1) 10,104 Health Care 3,636 1,453 1,733 (1) 6,821 Consumer 3,562 980 586 (1) 5,127 Corporate and Unallocated 51 — — (1) 50 Elimination of Dual Credit (745) (768) (238) — (1,751) Total Company $ 15,864 $ 10,254 $ 6,654 $ (7) $ 32,765 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions and Divestitures | |
Allocation of purchase price | 2019 Acquisition Activity Finite-Lived Intangible-Asset (Millions) Weighted-Average Asset (Liability) M*Modal Acelity Total Lives (Years) Accounts receivable $ 75 $ 295 $ 370 Inventory — 186 186 Other current assets 2 65 67 Property, plant, and equipment 8 147 155 Purchased finite-lived intangible assets: Customer related intangible assets 275 1,760 2,035 18 Other technology-based intangible assets 160 1,390 1,550 10 Definite-lived tradenames 11 485 496 16 Purchased goodwill 517 2,952 3,469 Other assets 58 73 131 Accounts payable and other liabilities (127) (438) (565) Interest bearing debt (251) (2,322) (2,573) Deferred tax asset/(liability) and accrued income taxes (24) (288) (312) Net assets acquired $ 704 $ 4,305 $ 5,009 Supplemental information: Cash paid $ 708 $ 4,486 $ 5,194 Less: Cash acquired 4 206 210 Cash paid, net of cash acquired $ 704 $ 4,280 $ 4,984 Consideration payable — 25 25 $ 704 $ 4,305 $ 5,009 |
Approximate amounts of major assets and liabilities associated with disposal groups classified as held-for-sale | December 31, (Millions) 2019 Inventory $ 70 Property, plant and equipment 150 Intangible assets 35 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets | |
Goodwill | (Millions) Safety and Industrial Transportation and Electronics Health Care Consumer Total Company Balance as of December 31, 2018 $ 4,716 $ 1,857 $ 3,248 $ 230 $ 10,051 Acquisition activity — — 3,469 — 3,469 Divestiture activity (49) — — — (49) Translation and other (46) (27) 22 24 (27) Balance as of December 31, 2019 $ 4,621 $ 1,830 $ 6,739 $ 254 $ 13,444 Acquisition activity — — (34) — (34) Divestiture activity — (10) (19) — (29) Translation and other 66 38 306 11 421 Balance as of December 31, 2020 $ 4,687 $ 1,858 $ 6,992 $ 265 $ 13,802 |
Acquired Intangible Assets | December 31, December 31, (Millions) 2020 2019 Customer related intangible assets $ 4,280 $ 4,316 Patents 537 538 Other technology-based intangible assets 2,114 2,124 Definite-lived tradenames 1,178 1,158 Other amortizable intangible assets 104 125 Total gross carrying amount $ 8,213 $ 8,261 Accumulated amortization — customer related (1,422) (1,180) Accumulated amortization — patents (512) (499) Accumulated amortization — other technology-based (638) (435) Accumulated amortization — definite-lived tradenames (385) (316) Accumulated amortization — other (79) (90) Total accumulated amortization $ (3,036) $ (2,520) Total finite-lived intangible assets — net $ 5,177 $ 5,741 Non-amortizable intangible assets (primarily tradenames) 658 638 Total intangible assets — net $ 5,835 $ 6,379 |
Schedule of amortization expense for acquired intangible assets | Amortization expense for the years ended December 31 follows: (Millions) 2020 2019 2018 Amortization expense $ 537 $ 341 $ 249 |
Schedule of expected amortization expense for acquired amortizable intangible assets | Expected amortization expense for acquired amortizable intangible assets recorded as of December 31, 2020 follows: After (Millions) 2021 2022 2023 2024 2025 2025 Amortization expense $ 528 $ 515 $ 488 $ 459 $ 428 $ 2,759 |
Restructuring Actions (Tables)
Restructuring Actions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
2020 Restructuring Actions | Operational/Marketing Capability Restructuring | |
Restructuring Cost and Reserve | |
Schedule of restructuring charges by income statement line | (Millions) Fourth Quarter 2020 Cost of sales $ 51 Selling, general and administrative expenses 79 Research, development and related expenses 7 Total operating income impact $ 137 |
Components of restructuring by business segment | Fourth Quarter 2020 (Millions) Employee-Related Asset-Related and Other Total Safety and Industrial $ 36 $ 7 $ 43 Transportation and Electronics 16 12 28 Health Care 23 3 26 Consumer 10 1 11 Corporate and Unallocated 16 13 29 Total Operating Expense $ 101 $ 36 $ 137 |
Accrued restructuring action balances | (Millions) Employee-Related Asset-Related and Other Total Expense incurred in the fourth quarter of 2020 $ 101 $ 36 $ 137 Non-cash changes — (36) (36) Accrued restructuring action balances as of December 31, 2020 $ 101 $ — $ 101 |
2020 Restructuring Actions | Drug delivery business | |
Restructuring Cost and Reserve | |
Schedule of restructuring charges by income statement line | (Millions) Second Quarter 2020 Cost of sales $ 42 Selling, general and administrative expenses 12 Research, development and related expenses 1 Total operating income impact $ 55 |
Accrued restructuring action balances | (Millions) Employee-Related Asset-Related and Other Total Expense incurred in the second quarter of 2020 $ 32 $ 23 $ 55 Non-cash changes — (14) (14) Cash payments (14) — (14) Adjustments (3) — (3) Accrued divestiture-related restructuring action balances as of December 31, 2020 $ 15 $ 9 $ 24 |
2020 Restructuring Actions | Other Restructuring | |
Restructuring Cost and Reserve | |
Schedule of restructuring charges by income statement line | (Millions) Second Quarter 2020 Cost of sales $ 13 Selling, general and administrative expenses 37 Research, development and related expenses 8 Total operating income impact $ 58 |
Components of restructuring by business segment | Second Quarter 2020 ( Millions Employee-Related Asset-Related and Other Total Safety and Industrial $ 7 $ — $ 7 Transportation and Electronics 11 — 11 Health Care 12 — 12 Consumer 5 — 5 Corporate and Unallocated — 23 23 Total Operating Expense $ 35 $ 23 $ 58 |
Accrued restructuring action balances | (Millions) Employee-Related Asset-Related Total Expense incurred in the second quarter of 2020 $ 35 $ 23 $ 58 Non-cash changes — (23) (23) Cash payments (2) — (2) Adjustments (9) — (9) Accrued restructuring action balances as of December 31, 2020 $ 24 $ — $ 24 |
2019 Restructuring Actions | |
Restructuring Cost and Reserve | |
Schedule of restructuring charges by income statement line | ( Millions Second and Fourth Quarter 2019 Cost of sales $ 72 Selling, general and administrative expenses 137 Research, development and related expenses 37 Total operating income impact 246 Other expense (income), net 36 Total income before income taxes impact $ 282 |
Components of restructuring by business segment | Second and Fourth Quarter 2019 ( Millions Employee-Related Asset-Related Total Safety and Industrial $ 50 $ — $ 50 Transportation and Electronics 31 — 31 Health Care 17 — 17 Consumer 8 — 8 Corporate and Unallocated 100 40 140 Total Operating Expense $ 206 $ 40 $ 246 |
Accrued restructuring action balances | (Millions) Employee-Related Asset-Related Total Expense incurred in the second quarter and fourth quarter of 2019 $ 242 $ 40 $ 282 Non-cash changes (36) (40) (76) Cash payments (52) — (52) Adjustments (14) — (14) Accrued restructuring action balances as of December 31, 2019 $ 140 $ — $ 140 Cash Payments (51) — (51) Adjustments (59) — (59) Accrued restructuring action balances as of December 31, 2020 $ 30 $ — $ 30 |
2018 Restructuring Actions | |
Restructuring Cost and Reserve | |
Schedule of restructuring charges by income statement line | (Millions) Second and Fourth Quarter 2018 Cost of sales $ 27 Selling, general and administrative expenses 105 Research, development and related expenses 5 Total $ 137 |
Accrued restructuring action balances | (Millions) Employee-Related Asset-Related Total Expense incurred in the second quarter and fourth quarter of 2018 $ 125 $ 12 $ 137 Non-cash changes — (12) (12) Cash payments (24) — (24) Adjustments (17) — (17) Accrued restructuring action balances as of December 31, 2018 $ 84 $ — $ 84 Cash payments (76) — (76) Adjustments (5) — (5) Accrued restructuring action balances as of December 31, 2019 $ 3 $ — $ 3 |
Supplemental Income Statement_2
Supplemental Income Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Income Statement Information | |
Schedule of other expense (income) | (Millions) 2020 2019 2018 Interest expense $ 529 $ 448 $ 350 Interest income (29) (80) (70) Pension and postretirement net periodic benefit cost (benefit) (50) (68) (73) Loss on deconsolidation of Venezuelan subsidiary — 162 — Total $ 450 $ 462 $ 207 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Balance Sheet Information | |
Supplemental Balance Sheet Information | (Millions) 2020 2019 Other current assets Derivative assets-current $ 34 $ 75 Held-to-maturity debt security held in trust — 470 Insurance related (receivables, prepaid expenses and other) 125 172 Other 166 174 Total other current assets $ 325 $ 891 Property, plant and equipment - at cost Land $ 338 $ 351 Buildings and leasehold improvements 8,021 7,877 Machinery and equipment 16,866 16,586 Construction in progress 1,425 1,310 Gross property, plant and equipment 26,650 26,124 Accumulated depreciation (17,229) (16,791) Property, plant and equipment - net $ 9,421 $ 9,333 Other assets Deferred income taxes $ 871 $ 521 Prepaid pension and post retirement 630 230 Insurance related receivables and other 49 67 Cash surrender value of life insurance policies 258 254 Equity method investments 134 70 Equity and other investments 80 126 Other 418 406 Total other assets $ 2,440 $ 1,674 Other current liabilities Accrued rebates $ 639 $ 594 Deferred revenue 498 430 Derivative liabilities 81 17 Employee benefits and withholdings 192 229 Contingent liability claims and other 556 566 Property, sales-related and other taxes 308 247 Pension and postretirement benefits 71 67 Other 933 906 Total other current liabilities $ 3,278 $ 3,056 Other liabilities Long term income taxes payable $ 1,511 $ 1,507 Employee benefits 410 312 Contingent liability claims and other 815 787 Finance lease obligations 93 111 Deferred income taxes 333 301 Other 300 257 Total other liabilities $ 3,462 $ 3,275 |
Supplemental Equity and Compr_2
Supplemental Equity and Comprehensive Income Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Equity and Comprehensive Income Information | |
Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M | Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component Defined Benefit Cash Flow Total Pension and Hedging Accumulated Cumulative Postretirement Instruments, Other Translation Plans Unrealized Comprehensive (Millions) Adjustment Adjustment Gain (Loss) Income (Loss) Balance at December 31, 2017, net of tax: $ (1,638) $ (5,276) $ (112) $ (7,026) Other comprehensive income (loss), before tax: Amounts before reclassifications (414) 55 133 (226) Amounts reclassified out — 606 96 702 Total other comprehensive income (loss), before tax (414) 661 229 476 Tax effect (47) (217) (53) (317) Total other comprehensive income (loss), net of tax (461) 444 176 159 Impact from purchase of subsidiary shares 1 — — 1 Balance at December 31, 2018, net of tax: $ (2,098) $ (4,832) $ 64 $ (6,866) Impact of adoption of ASU No. 2018-02 (13) (817) (23) (853) Other comprehensive income (loss), before tax: Amounts before reclassifications 102 (1,227) (26) (1,151) Amounts reclassified out 142 459 (70) 531 Total other comprehensive income (loss), before tax 244 (768) (96) (620) Tax effect (32) 208 24 200 Total other comprehensive income (loss), net of tax 212 (560) (72) (420) Balance at December 31, 2019, net of tax: $ (1,899) $ (6,209) $ (31) $ (8,139) Other comprehensive income (loss), before tax: Amounts before reclassifications 387 (555) (113) (281) Amounts reclassified out — 676 (71) 605 Total other comprehensive income (loss), before tax 387 121 (184) 324 Tax effect 62 50 42 154 Total other comprehensive income (loss), net of tax 449 171 (142) 478 Balance at December 31, 2020, net of tax: $ (1,450) $ (6,038) $ (173) $ (7,661) |
Reclassifications out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income Attributable to 3M Amounts Reclassified from Details about Accumulated Other Accumulated Other Comprehensive Income Comprehensive Income Components Year ended December 31, Location on Income (Millions) 2020 2019 2018 Statement Cumulative translation adjustment Deconsolidation of Venezuelan subsidiary $ — $ (142) $ — Other (expense) income, net Total before tax — (142) — Tax effect — — — Provision for income taxes Net of tax $ — $ (142) $ — Defined benefit pension and postretirement plans adjustments Gains (losses) associated with defined benefit pension and postretirement plans amortization Transition asset $ (2) $ — $ — See Note 13 Prior service benefit 62 69 76 See Note 13 Net actuarial loss (716) (478) (678) See Note 13 Curtailments/Settlements (20) (48) (4) See Note 13 Deconsolidation of Venezuelan subsidiary — (2) — Other (expense) income, net Total before tax (676) (459) (606) Tax effect 161 110 145 Provision for income taxes Net of tax $ (515) $ (349) $ (461) Cash flow hedging instruments gains (losses) Foreign currency forward/option contracts $ 80 $ 74 $ (95) Cost of sales Interest rate contracts (9) (4) (1) Interest expense Total before tax 71 70 (96) Tax effect (17) (17) 19 Provision for income taxes Net of tax $ 54 $ 53 $ (77) Total reclassifications for the period, net of tax $ (461) $ (438) $ (538) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements | |
Supplemental Cash Flow Information | (Millions) 2020 2019 2018 Cash income tax payments, net of refunds $ 1,351 $ 1,198 $ 1,560 Cash interest payments 524 370 314 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes. | |
Income Before Income Taxes | Income Before Income Taxes (Millions) 2020 2019 2018 United States $ 3,720 $ 3,008 $ 3,487 International 2,991 2,704 3,513 Total $ 6,711 $ 5,712 $ 7,000 |
Provision for Income Taxes | Provision for Income Taxes (Millions) 2020 2019 2018 Currently payable Federal $ 720 $ 534 $ 698 State 123 59 109 International 633 673 763 Tax Cuts and Jobs Act (TCJA) non-current transition tax provision — — 176 Deferred Federal (59) (32) (38) State (20) (26) (17) International (79) (78) (54) Total $ 1,318 $ 1,130 $ 1,637 |
Components of Deferred Tax Assets and Liabilities | Components of Deferred Tax Assets and Liabilities (Millions) 2020 2019 Deferred tax assets: Accruals not currently deductible Employee benefit costs $ 232 $ 169 Product and other claims 338 280 Miscellaneous accruals 153 119 Pension costs 849 824 Stock-based compensation 231 218 Net operating/capital loss/tax credit carryforwards 148 150 Foreign tax credits 100 66 Currency translation 90 — Inventory 54 70 Other 112 113 Gross deferred tax assets 2,307 2,009 Valuation allowance (135) (158) Total deferred tax assets $ 2,172 $ 1,851 Deferred tax liabilities: Product and other insurance receivables $ (4) $ — Accelerated depreciation (607) (580) Intangible amortization (1,023) (1,021) Currency translation — (30) Other — — Total deferred tax liabilities $ (1,634) $ (1,631) Net deferred tax assets $ 538 $ 220 |
Reconciliation of Effective Income Tax Rate | Reconciliation of Effective Income Tax Rate 2020 2019 2018 Statutory U.S. tax rate 21.0 % 21.0 % 21.0 % State income taxes - net of federal benefit 1.2 0.5 1.0 International income taxes - net (1.2) 0.2 0.2 Global Intangible Low Taxed Income (GILTI) 0.8 1.8 1.1 Foreign Derived Intangible Income (FDII) (1.8) (2.9) (1.3) U.S. TCJA enactment - net impacts — — 2.5 U.S. research and development credit (1.0) (1.7) (1.5) Reserves for tax contingencies 0.5 2.3 1.2 Employee share-based payments (0.5) (1.3) (1.4) All other - net 0.6 (0.1) 0.6 Effective worldwide tax rate 19.6 % 19.8 % 23.4 % |
Reconciliation of Federal, State and Foreign Tax Gross Unrecognized Tax Benefits | Federal, State and Foreign Tax (Millions) 2020 2019 2018 Gross UTB Balance at January 1 $ 1,167 $ 647 $ 530 Additions based on tax positions related to the current year 74 76 129 Additions for tax positions of prior years 106 132 146 Additions related to recent acquisitions — 396 — Reductions for tax positions of prior years (173) (56) (123) Settlements (8) (4) (17) Reductions due to lapse of applicable statute of limitations (53) (24) (18) Gross UTB Balance at December 31 $ 1,113 $ 1,167 $ 647 Net UTB that would impact the effective tax rate at December 31 $ 1,145 $ 1,178 $ 655 |
Marketable Securities and Hel_2
Marketable Securities and Held-to-Maturity Debt Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Marketable Securities and Held-to-Maturity Debt Securities | |
Schedule of marketable securities | (Millions) December 31, 2020 December 31, 2019 Corporate debt securities $ 7 $ — Commercial paper 237 85 Certificates of deposit/time deposits 31 10 U.S. treasury securities 125 — U.S. municipal securities 4 3 Current marketable securities $ 404 $ 98 U.S. municipal securities $ 30 $ 43 Non-current marketable securities $ 30 $ 43 Total marketable securities $ 434 $ 141 |
Schedule of marketable securities by contractual maturity | (Millions) December 31, 2020 Due in one year or less $ 404 Due after one year through five years 15 Due after five years through ten years 15 Total marketable securities $ 434 |
Long-Term Debt and Short-Term_2
Long-Term Debt and Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Debt and Short-Term Borrowings | |
Schedule of Long-Term Debt | Long-Term Debt (Millions) Currency/ Effective Final Carrying Value Description / 2020 Principal Amount Fixed vs. Floating Interest Rate Maturity Date 2020 2019 Third lien senior secured notes subject to in-substance defeasance (repaid in 2020) USD Fixed — % 2020 $ — $ 463 Medium-term note (repaid in 2020) EUR Floating — % 2020 — 726 Medium-term note (repaid in 2020) USD Floating — % 2020 — 299 Medium-term note (repaid in 2020) USD Floating — % 2020 — 200 Medium-term note (repaid in 2020) USD Fixed — % 2020 — 599 Medium-term note (repaid in 2020) USD Fixed — % 2020 — 199 Medium-term note (repaid in 2020) USD Floating — % 2020 — 204 Eurobond (300 million euros) EUR Floating (0.28) % 2021 374 346 Eurobond (300 million euros) EUR Fixed 1.97 % 2021 367 334 Medium-term note (500 million euros) EUR Fixed 0.45 % 2022 612 557 Medium-term note ($600 million) USD Fixed 2.17 % 2022 598 597 Medium-term note ($450 million) USD Fixed 2.76 % 2022 449 449 Medium-term note (600 million euros) EUR Fixed 1.14 % 2023 731 665 Medium-term note ($650 million) USD Fixed 2.26 % 2023 649 648 Registered note ($500 million) USD Fixed 1.86 % 2023 498 497 Medium-term note ($300 million) USD Floating 0.52 % 2024 299 299 Medium-term note ($300 million) USD Fixed 3.30 % 2024 299 299 Medium-term note ($500 million) USD Fixed 2.98 % 2024 502 503 Medium-term note ($550 million) USD Fixed 3.04 % 2025 548 547 Registered note ($750 million) USD Fixed 2.12 % 2025 744 743 Registered note ($500 million) USD Fixed 2.67 % 2025 498 — Medium-term note (750 million euros) EUR Fixed 1.66 % 2026 908 826 Medium-term note ($650 million) USD Fixed 2.37 % 2026 644 643 Medium-term note ($850 million) USD Fixed 2.95 % 2027 843 842 30-year debenture ($220 million) USD Fixed 6.44 % 2028 225 226 Medium-term note ($600 million) USD Fixed 3.62 % 2028 598 597 Medium-term note ($800 million) USD Fixed 3.38 % 2029 796 796 Registered note ($1 billion) USD Fixed 2.50 % 2029 986 984 Medium-term note (500 million euros) EUR Fixed 1.90 % 2030 604 549 Registered note ($600 million) USD Fixed 3.09 % 2030 595 — Medium-term note (500 million euros) EUR Fixed 1.54 % 2031 608 554 30-year bond ($555 million) USD Fixed 5.73 % 2037 551 551 Floating rate note ($96 million) USD Floating — % 2041 96 96 Medium-term note ($325 million) USD Fixed 4.05 % 2044 315 314 Floating rate note ($55 million) USD Floating — % 2044 53 53 Medium-term note ($500 million) USD Fixed 3.37 % 2046 476 475 Medium-term note ($500 million) USD Fixed 3.68 % 2047 492 492 Medium-term note ($650 million) USD Fixed 4.07 % 2048 637 637 Medium-term note ($500 million) USD Fixed 3.78 % 2048 505 506 Registered note ($1 billion) USD Fixed 3.37 % 2049 969 968 Registered note ($650 million) USD Fixed 3.72 % 2050 642 — Other borrowings Various 0.01 % 2021-2040 72 76 Total long-term debt $ 18,783 $ 19,359 Less: current portion of long-term debt 794 1,841 Long-term debt (excluding current portion) $ 17,989 $ 17,518 |
Schedule of Post-Swap Borrowing (Long-Term Debt, Including Current Portion) | Post-Swap Borrowing (Long-Term Debt, Including Current Portion) 2020 2019 Carrying Effective Carrying Effective (Millions) Value Interest Rate Value Interest Rate Fixed-rate debt $ 17,889 2.80 % $ 17,061 3.01 % Floating-rate debt 894 0.06 % 2,298 1.06 % Total long-term debt, including current portion $ 18,783 $ 19,359 |
Schedule of Short-Term Borrowings and Current Portion of Long-Term Debt | Short-Term Borrowings and Current Portion of Long-Term Debt Effective Carrying Value (Millions) Interest Rate 2020 2019 Current portion of long-term debt 0.78 % $ 794 $ 1,841 U.S. dollar commercial paper — % — 150 Japan subsidiary credit facility — % — 632 German subsidiary credit facility — % — 168 Other borrowings 4.83 % 12 4 Total short-term borrowings and current portion of long-term debt $ 806 $ 2,795 |
Schedule of Maturities of Long-Term Debt | 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 unaccreted debt issue costs such that total maturities equal the carrying value of long-term debt as of December 31, 2020. The maturities of long-term debt for the periods subsequent to December 31, 2020 are as follows (in millions): After 2021 2022 2023 2024 2025 2025 Total $ 794 $ 1,659 $ 1,878 $ 1,100 $ 1,790 $ 11,562 $ 18,783 |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |
Reconciliation of the beginning and ending balances of the benefit obligation and the fair value of plan assets | Qualified and Non-qualified Pension Benefits Postretirement United States International Benefits (Millions) 2020 2019 2020 2019 2020 2019 Change in benefit obligation Benefit obligation at beginning of year $ 17,935 $ 15,948 $ 7,931 $ 6,965 $ 2,242 $ 2,175 Acquisitions/Transfers — — 1 9 — — Service cost 261 251 152 131 43 43 Interest cost 499 620 117 156 62 82 Participant contributions — — 9 7 — — Foreign exchange rate changes — — 427 55 (14) — Plan amendments — — — 3 — (171) Actuarial (gain) loss 1,785 2,209 464 906 176 225 Benefit payments (1,104) (1,128) (274) (302) (107) (112) Settlements, curtailments, special termination benefits and other — 35 (57) 1 (5) — Benefit obligation at end of year $ 19,376 $ 17,935 $ 8,770 $ 7,931 $ 2,397 $ 2,242 Change in plan assets Fair value of plan assets at beginning of year $ 16,099 $ 14,803 $ 6,923 $ 6,170 $ 1,338 $ 1,260 Acquisitions/Transfers — — — 4 — — Actual return on plan assets 2,071 2,323 1,102 858 147 187 Company contributions 61 101 92 106 3 3 Participant contributions — — 9 7 — — Foreign exchange rate changes — — 376 80 — — Benefit payments (1,104) (1,128) (274) (302) (107) (112) Settlements, curtailments, special termination benefits and other — — (34) — (5) — Fair value of plan assets at end of year $ 17,127 $ 16,099 $ 8,194 $ 6,923 $ 1,376 $ 1,338 Funded status at end of year $ (2,249) $ (1,836) $ (576) $ (1,008) $ (1,021) $ (904) |
Amounts recognized in the Consolidated Balance Sheet | Qualified and Non-qualified Pension Benefits Postretirement United States International Benefits (Millions) 2020 2019 2020 2019 2020 2019 Amounts recognized in the Consolidated Balance Sheet as of Dec. 31, Non-current assets $ — $ — $ 630 $ 230 $ — $ — Accrued benefit cost Current liabilities (52) (48) (15) (15) (4) (4) Non-current liabilities (2,197) (1,788) (1,191) (1,223) (1,017) (900) Ending balance $ (2,249) $ (1,836) $ (576) $ (1,008) $ (1,021) $ (904) |
Amounts recognized in accumulated other comprehensive income | Qualified and Non-qualified Pension Benefits Postretirement United States International Benefits (Millions) 2020 2019 2020 2019 2020 2019 Amounts recognized in accumulated other comprehensive income as of Dec. 31, Net transition obligation (asset) $ — $ — $ 9 $ 10 $ — $ — Net actuarial loss (gain) 6,080 5,899 1,557 1,967 713 663 Prior service cost (credit) (104) (128) (2) (5) (230) (262) Ending balance $ 5,976 $ 5,771 $ 1,564 $ 1,972 $ 483 $ 401 |
Amounts relating to pension plans with accumulated benefit obligations in excess of plan assets | The following amounts relate to pension plans with accumulated benefit obligations in excess of plan assets as of December 31: Qualified and Non-qualified Pension Plans United States International (Millions) 2020 2019 2020 2019 Projected benefit obligation $ 19,376 $ 17,935 $ 3,385 $ 2,986 Accumulated benefit obligation 18,441 17,125 3,119 2,752 Fair value of plan assets 17,127 16,099 2,199 1,778 |
Components of net periodic benefit cost (benefit) | Qualified and Non-qualified Pension Benefits Postretirement United States International Benefits (Millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Net periodic benefit cost (benefit) Operating expense Service cost $ 261 $ 251 $ 288 $ 152 $ 131 $ 143 $ 43 $ 43 $ 52 Non-operating expense Interest cost 499 620 563 117 156 157 62 82 79 Expected return on plan assets (1,019) (1,040) (1,087) (306) (299) (307) (79) (81) (84) Amortization of transition asset — — — 2 — — — — — Amortization of prior service benefit (24) (24) (23) (5) (12) (13) (33) (33) (40) Amortization of net actuarial loss 536 366 503 131 78 114 49 34 61 Settlements, curtailments, special termination benefits and other 16 70 — 1 10 4 3 5 — Total non-operating expense (benefit) 8 (8) (44) (60) (67) (45) 2 7 16 Total net periodic benefit cost (benefit) $ 269 $ 243 $ 244 $ 92 $ 64 $ 98 $ 45 $ 50 $ 68 Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss Amortization of transition asset $ — $ — $ — $ (2) $ — $ — $ — $ — $ — Prior service cost (benefit) — — — — 3 7 — (171) — Amortization of prior service benefit 24 24 23 5 12 13 33 33 40 Net actuarial (gain) loss 733 926 (44) (358) 344 194 108 119 (127) Amortization of net actuarial loss (536) (366) (503) (131) (78) (114) (49) (34) (61) Foreign currency — — — 79 7 (83) (7) (1) (2) Settlements, curtailments, special termination benefits and other (16) (35) — (1) (8) (4) (3) (5) — Total recognized in other comprehensive (income) loss $ 205 $ 549 $ (524) $ (408) $ 280 $ 13 $ 82 $ (59) $ (150) Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss $ 474 $ 792 $ (280) $ (316) $ 344 $ 111 $ 127 $ (9) $ (82) |
Weighted-average assumptions used to determine benefit obligations and net cost | Weighted-average assumptions used to determine benefit obligations as of December 31 Qualified and Non-qualified Pension Benefits Postretirement United States International Benefits 2020 2019 2018 2020 2019 2018 2020 2019 2018 Discount rate 2.55 % 3.25 % 4.36 % 1.38 % 1.81 % 2.50 % 2.50 % 3.27 % 4.41 % Compensation rate increase 3.21 % 3.21 % 4.10 % 2.88 % 2.88 % 2.89 % N/A N/A N/A Weighted-average assumptions used to determine net cost for years ended December 31 Qualified and Non-qualified Pension Benefits Postretirement United States International Benefits 2020 2019 2018 2020 2019 2018 2020 2019 2018 Discount rate - service cost 3.41 % 4.44 % 3.78 % 1.61 % 2.39 % 2.27 % 3.45 % 4.53 % 3.86 % Discount rate - interest cost 2.87 % 4.02 % 3.35 % 1.61 % 2.26 % 2.14 % 3.00 % 4.15 % 3.52 % Expected return on assets 6.75 % 7.00 % 7.25 % 4.70 % 4.90 % 5.02 % 6.32 % 6.43 % 6.53 % Compensation rate increase 3.21 % 4.10 % 4.10 % 2.88 % 2.89 % 2.89 % N/A N/A N/A |
Estimated future pension and postretirement benefit payments | Future Pension and Postretirement Benefit Payments The following table provides the estimated pension and postretirement benefit payments that are payable from the plans to participants. Qualified and Non-qualified Pension Benefits Postretirement (Millions) United States International Benefits 2021 Benefit Payments $ 1,127 $ 263 $ 127 2022 Benefit Payments 1,134 276 133 2023 Benefit Payments 1,135 292 140 2024 Benefit Payments 1,134 311 145 2025 Benefit Payments 1,139 319 152 Next five years 5,619 1,752 792 |
Qualified and Non-qualified Pension Benefits | United States | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |
Fair values of the assets held by the plans by asset category | The fair values of the assets held by the U.S. pension plans by asset class are as follows: Fair Value Measurements Using Inputs Considered as Fair Value at (Millions) Level 1 Level 2 Level 3 Dec. 31, Asset Class 2020 2019 2020 2019 2020 2019 2020 2019 Equities U.S. equities $ 2,082 $ 1,575 $ — $ — $ — $ — $ 2,082 $ 1,575 Non-U.S. equities 2,041 1,585 — — — — 2,041 1,585 Index and long/short equity funds* 433 417 Total Equities $ 4,123 $ 3,160 $ — $ — $ — $ — $ 4,556 $ 3,577 Fixed Income U.S. government securities $ 1,301 $ 2,346 $ 978 $ 916 $ — $ — $ 2,279 $ 3,262 Non-U.S. government securities — — 71 61 — — 71 61 Preferred and convertible securities — — 55 52 — — 55 52 U.S. corporate bonds 10 10 4,501 3,566 — — 4,511 3,576 Non-U.S. corporate bonds — — 820 759 — — 820 759 Derivative instruments (4) (5) 7 109 — — 3 104 Other* 71 — Total Fixed Income $ 1,307 $ 2,351 $ 6,432 $ 5,463 $ — $ — $ 7,810 $ 7,814 Private Equity Growth equity $ 70 $ 80 $ — $ — $ — $ — $ 70 $ 80 Partnership investments* 1,801 1,865 Total Private Equity $ 70 $ 80 $ — $ — $ — $ — $ 1,871 $ 1,945 Absolute Return Fixed income and other $ — $ 1 $ 134 $ 117 $ — $ — $ 134 $ 118 Hedge fund/fund of funds* 2,046 2,010 Partnership investments* 567 589 Total Absolute Return $ — $ 1 $ 134 $ 117 $ — $ — $ 2,747 $ 2,717 Cash and Cash Equivalents Cash and cash equivalents $ 25 $ 20 $ 12 $ 5 $ — $ — $ 37 $ 25 Repurchase agreements and derivative margin activity — — (6) (1) — — (6) (1) Cash and cash equivalents, valued at net asset value* 475 480 Total Cash and Cash Equivalents $ 25 $ 20 $ 6 $ 4 $ — $ — $ 506 $ 504 Total $ 5,525 $ 5,612 $ 6,572 $ 5,584 $ — $ — $ 17,490 $ 16,557 Other items to reconcile to fair value of plan assets $ (363) $ (458) Fair value of plan assets $ 17,127 $ 16,099 |
Qualified and Non-qualified Pension Benefits | International | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |
Fair values of the assets held by the plans by asset category | The fair values of the assets held by the international pension plans by asset class are as follows: Fair Value Measurements Using Inputs Considered as Fair Value at (Millions) Level 1 Level 2 Level 3 Dec. 31, Asset Class 2020 2019 2020 2019 2020 2019 2020 2019 Equities Growth equities $ 547 $ 638 $ 209 $ 796 $ — $ — $ 756 $ 1,434 Value equities 659 696 396 10 — — 1,055 706 Core equities 46 61 99 88 4 5 149 154 Equities, valued at net asset value* 74 18 Total Equities $ 1,252 $ 1,395 $ 704 $ 894 $ 4 $ 5 $ 2,034 $ 2,312 Fixed Income Domestic government $ 71 $ 353 $ 1,045 $ 433 $ 5 $ 4 $ 1,121 $ 790 Foreign government 33 22 476 603 — — 509 625 Corporate debt securities 34 3 2,470 1,599 11 9 2,515 1,611 Fixed income securities, valued at net asset value* 563 449 Total Fixed Income $ 138 $ 378 $ 3,991 $ 2,635 $ 16 $ 13 $ 4,708 $ 3,475 Private Equity Real estate $ 128 $ 6 $ 86 $ 207 $ 5 $ 4 $ 219 $ 217 Real estate, valued at net asset value* 92 36 Partnership investments* 116 85 Total Private Equity $ 128 $ 6 $ 86 $ 207 $ 5 $ 4 $ 427 $ 338 Absolute Return Derivatives $ — $ — $ 1 $ 3 $ — $ — $ 1 $ 3 Insurance — — — — 555 513 555 513 Other 8 — — — 6 5 14 5 Other, valued at net asset value* 1 1 Hedge funds* 410 195 Total Absolute Return $ 8 $ — $ 1 $ 3 $ 561 $ 518 $ 981 $ 717 Cash and Cash Equivalents Cash and cash equivalents $ 149 $ 94 $ 51 $ 39 $ — $ — $ 200 $ 133 Cash and cash equivalents, valued at net asset value* 1 1 Total Cash and Cash Equivalents $ 149 $ 94 $ 51 $ 39 $ — $ — $ 201 $ 134 Total $ 1,675 $ 1,873 $ 4,833 $ 3,778 $ 586 $ 540 $ 8,351 $ 6,976 Other items to reconcile to fair value of plan assets $ (157) $ (53) Fair value of plan assets $ 8,194 $ 6,923 |
Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |
Fair values of the assets held by the plans by asset category | The fair values of the assets held by the postretirement benefit plans by asset class are as follows: Fair Value Measurements Using Inputs Considered as Fair Value at (Millions) Level 1 Level 2 Level 3 Dec. 31, Asset Class 2020 2019 2020 2019 2020 2019 2020 2019 Equities U.S. equities $ 347 $ 337 $ — $ — $ — $ — $ 347 $ 337 Non-U.S. equities 103 77 — — — — 103 77 Index and long/short equity funds* 31 33 Total Equities $ 450 $ 414 $ — $ — $ — $ — $ 481 $ 447 Fixed Income U.S. government securities $ 95 $ 136 $ 214 $ 242 $ — $ — $ 309 $ 378 Non-U.S. government securities — — 6 6 — — 6 6 U.S. corporate bonds 1 — 267 203 — — 268 203 Non-U.S. corporate bonds — — 52 46 — — 52 46 Derivative instruments — — — 5 — — — 5 Other* 3 — Total Fixed Income $ 96 $ 136 $ 539 $ 502 $ — $ — $ 638 $ 638 Private Equity Growth equity $ 3 $ 4 $ — $ — $ — $ — $ 3 $ 4 Partnership investments* 95 92 Total Private Equity $ 3 $ 4 $ — $ — $ — $ — $ 98 $ 96 Absolute Return Fixed income and other $ — $ — $ 7 $ 5 $ — $ — $ 7 $ 5 Hedge fund/fund of funds* 100 92 Partnership investments* 28 27 Total Absolute Return $ — $ — $ 7 $ 5 $ — $ — $ 135 $ 124 Cash and Cash Equivalents Cash and cash equivalents $ 25 $ 33 $ 1 $ 1 $ — $ — $ 26 $ 34 Cash and cash equivalents, valued at net asset value* 23 22 Total Cash and Cash Equivalents $ 25 $ 33 $ 1 $ 1 $ — $ — $ 49 $ 56 Total $ 574 $ 587 $ 547 $ 508 $ — $ — $ 1,401 $ 1,361 Other items to reconcile to fair value of plan assets $ (25) $ (23) Fair value of plan assets $ 1,376 $ 1,338 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivatives | |
Gains (losses) on derivative instruments dedesignated as hedges | Pretax Gain (Loss) Recognized in Other Pretax Gain (Loss) Reclassified Comprehensive from Accumulated Other Income on Derivative Comprehensive Income into Income Year ended December 31, 2020 (Millions) Amount Location Amount Foreign currency forward/option contracts $ (111) Cost of sales $ 80 Interest rate contracts (2) Interest expense (9) Total $ (113) $ 71 Year ended December 31, 2019 (Millions) Amount Location Amount Foreign currency forward/option contracts $ 96 Cost of sales $ 74 Interest rate contracts (122) Interest expense (4) Total $ (26) $ 70 |
Gain (loss) on derivative instruments designated as cash flow hedges | Pretax Gain (Loss) Recognized in Pretax Gain (Loss) Income on Effective Portion of Ineffective Portion of Gain Recognized in Other Derivative as a Result of (Loss) on Derivative and Comprehensive Reclassification from Amount Excluded from Income on Effective Accumulated Other Effectiveness Testing Portion of Derivative Comprehensive Income Recognized in Income Year ended December 31, 2018 (Millions) Amount Location Amount Location Amount Foreign currency forward/option contracts $ 151 Cost of sales $ (95) Cost of sales $ — Interest rate swap contracts (18) Interest expense (1) Interest expense — Total $ 133 $ (96) $ — |
Gain (loss) on derivative instruments designated as fair value hedges | Gain (Loss) on Derivative Gain (Loss) on Hedged Item Recognized in Income Recognized in Income Year ended December 31, 2018 (Millions) Location Amount Location Amount Interest rate swap contracts Interest expense $ (5) Interest expense $ 5 Total $ (5) $ 5 The following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges: Cumulative Amount of Fair Value Hedging Carrying Value of the Adjustment Included in the Carrying Value Hedged Liabilities (in millions) of the Hedged Liabilities (in millions) Location on the Consolidated Balance Sheet December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Short-term borrowings and current portion of long-term debt $ 373 $ 499 $ 5 $ — Long-term debt 225 775 6 22 Total $ 598 $ 1,274 $ 11 $ 22 |
Gain (loss) on derivative and non-derivative instruments designated as net investment hedges | Pretax Gain (Loss) Recognized as Cumulative Translation Amount of Gain (Loss) Excluded within Other from Effectiveness Testing Comprehensive Income Recognized in Income Year ended December 31, 2020 (Millions) Amount Location Amount Foreign currency denominated debt $ (351) Cost of sales $ — Foreign currency forward contracts (1) Cost of sales 5 Total $ (352) $ 5 Year ended December 31, 2019 (Millions) Amount Location Amount Foreign currency denominated debt $ 108 Cost of sales $ — Foreign currency forward contracts 32 Cost of sales 20 Total $ 140 $ 20 Pretax Gain (Loss) Recognized as Cumulative Translation within Other Ineffective Portion of Gain (Loss) on Comprehensive Income Instrument and Amount Excluded on Effective Portion of from Effectiveness Testing Instrument Recognized in Income Year ended December 31, 2018 (Millions) Amount Location Amount Foreign currency denominated debt $ 222 Cost of sales $ (2) Foreign currency forward contracts 18 Cost of sales 4 Total $ 240 $ 2 |
Gain (loss) on derivative instruments not designated as hedging instruments | The location in the consolidated statements of income and amounts of gains and losses related to derivative instruments not designated as hedging instruments are as follows: Gain (Loss) on Derivative Recognized in Income Year ended December 31, 2020 2019 2018 (Millions) Location Amount Amount Amount Foreign currency forward/option contracts Cost of sales $ 2 $ 2 $ 13 Foreign currency forward contracts Interest expense 43 (13) (109) Total $ 45 $ (11) $ (96) |
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 | Location and Amount of Gain (Loss) Recognized in Income Year ended December 31, 2020 (Millions) Cost of sales Other expense Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of cash flow or fair value hedges are recorded $ 16,605 $ 450 The effects of cash flow and fair value hedging: Gain or (loss) on cash flow hedging relationships: Foreign currency forward/option contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 80 $ — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — (9) Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items $ — $ 4 Derivatives designated as hedging instruments — (4) Location and Amount of Gain (Loss) Recognized in Income Year ended December 31, 2019 (Millions) Cost of sales Other expense Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of cash flow or fair value hedges are recorded $ 17,136 $ 462 The effects of cash flow and fair value hedging: Gain or (loss) on cash flow hedging relationships: Foreign currency forward/option contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 74 $ — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — (4) Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items $ — $ (8) Derivatives designated as hedging instruments — 8 |
Location and Fair Value of Derivative Instruments | Gross Assets Liabilities Notional Fair Fair December 31, 2020 (Millions) Amount Location Value Amount Location Value Amount Derivatives designated as hedging instruments Foreign currency forward/option contracts $ 1,630 Other current assets $ 14 Other current liabilities $ 67 Foreign currency forward/option contracts 669 Other assets 10 Other liabilities 25 Interest rate contracts 403 Other current assets 7 Other current liabilities — Total derivatives designated as hedging instruments $ 31 $ 92 Derivatives not designated as hedging instruments Foreign currency forward/option contracts $ 3,166 Other current assets $ 13 Other current liabilities $ 14 Total derivatives not designated as hedging instruments $ 13 $ 14 Total derivative instruments $ 44 $ 106 Gross Assets Liabilities Notional Fair Fair December 31, 2019 (Millions) Amount Location Value Amount Location Value Amount Derivatives designated as hedging instruments Foreign currency forward/option contracts $ 1,995 Other current assets $ 64 Other current liabilities $ 9 Foreign currency forward/option contracts 1,041 Other assets 50 Other liabilities 3 Interest rate contracts 500 Other current assets — Other current liabilities — Interest rate contracts 603 Other assets 17 Other liabilities — Total derivatives designated as hedging instruments $ 131 $ 12 Derivatives not designated as hedging instruments Foreign currency forward/option contracts $ 2,684 Other current assets $ 11 Other current liabilities $ 8 Total derivatives not designated as hedging instruments $ 11 $ 8 Total derivative instruments $ 142 $ 20 |
Offsetting Assets | Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject Gross Amount of to Master Netting Agreements Derivative Assets Gross Amount of Presented in the Eligible Offsetting Cash Consolidated Recognized Collateral Net Amount of December 31, 2020 (Millions) Balance Sheet Derivative Liabilities Received Derivative Assets Derivatives subject to master netting agreements $ 44 $ 11 $ — $ 33 Derivatives not subject to master netting agreements — — Total $ 44 $ 33 December 31, 2019 (Millions) Derivatives subject to master netting agreements $ 142 $ 14 $ — $ 128 Derivatives not subject to master netting agreements — — Total $ 142 $ 128 |
Offsetting Liabilities | Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject Gross Amount of to Master Netting Agreements Derivative Liabilities Gross Amount of Presented in the Eligible Offsetting Cash Net Amount of Consolidated Recognized Collateral Derivative December 31, 2020 (Millions) Balance Sheet Derivative Assets Pledged Liabilities Derivatives subject to master netting agreements $ 106 $ 11 $ — $ 95 Derivatives not subject to master netting agreements — — Total $ 106 $ 95 December 31, 2019 (Millions) Derivatives subject to master netting agreements $ 20 $ 14 $ — $ 6 Derivatives not subject to master netting agreements — — Total $ 20 $ 6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurements | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | Fair Value Measurements Description Fair Value at Using Inputs Considered as (Millions) December 31, 2020 Level 1 Level 2 Level 3 Assets: Available-for-sale: Marketable securities: Corporate debt securities $ 7 $ — $ 7 $ — Commercial paper 237 — 237 — Certificates of deposit/time deposits 31 — 31 — U.S. treasury securities 125 125 — — U.S. municipal securities 34 — — 34 Derivative instruments — assets: Foreign currency forward/option contracts 37 — 37 — Interest rate contracts 7 — 7 — Liabilities: Derivative instruments — liabilities: Foreign currency forward/option contracts 106 — 106 — Fair Value Measurements Description Fair Value at Using Inputs Considered as (Millions) December 31, 2019 Level 1 Level 2 Level 3 Assets: Available-for-sale: Marketable securities: Commercial paper $ 85 $ — $ 85 $ — Certificates of deposit/time deposits 10 — 10 — U.S. municipal securities 46 — — 46 Investments 25 25 — — Derivative instruments — assets: Foreign currency forward/option contracts 125 — 125 — Interest rate contracts 17 — 17 — Liabilities: Derivative instruments — liabilities: Foreign currency forward/option contracts 20 — 20 — |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Marketable securities — certain U.S. municipal securities only (Millions) 2020 2019 2018 Beginning balance $ 46 $ 40 $ 30 Total gains or losses: Included in earnings — — — Included in other comprehensive income — — — Purchases and issuances 10 9 13 Sales and settlements (22) (3) (3) Transfers in and/or out of level 3 — — — Ending balance 34 46 40 Change in unrealized gains or losses for the period included in earnings for securities held at the end of the reporting period — — — |
Fair Value of Financial Instruments by Balance Sheet Grouping | December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair (Millions) Value Value Value Value Long-term debt, excluding current portion $ 17,989 $ 20,496 $ 17,518 $ 18,475 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Schedule of components of lease expense | Year ended December 31, (Millions) 2020 2019 Operating lease cost $ 348 $ 308 Finance lease cost: Amortization of assets 21 20 Interest on lease liabilities 1 2 Variable lease cost 101 93 Total net lease cost $ 471 $ 423 |
Schedule of supplemental balance sheet information | Location on Face of As of December 31, (Millions unless noted) Balance Sheet 2020 2019 Operating leases: Operating lease right of use assets Operating lease right $ 864 $ 858 Current operating lease liabilities Operating lease liabilities - current $ 256 $ 247 Noncurrent operating lease liabilities Operating lease liabilities 609 607 Total operating lease liabilities $ 865 $ 854 Finance leases: Property and equipment, at cost Property, plant and equipment $ 225 $ 239 Accumulated amortization Property, plant and equipment (accumulated depreciation) (106) (102) Property and equipment, net $ 119 $ 137 Current obligations of finance leases Other current $ 22 $ 21 Finance leases, net of current obligations Other liabilities 93 111 Total finance lease liabilities $ 115 $ 132 Weighted average remaining lease term (in years): Operating leases 5.6 5.7 Finance leases 7.6 9.0 Weighted average discount rate: Operating leases 2.4 % 3.2 % Finance leases 3.5 % 3.8 % |
Schedule of supplemental cash flow and other information | Year Ended December 31, (Millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 326 $ 309 Operating cash flows from finance leases 1 2 Financing cash flows from finance leases 58 18 Right of use assets obtained in exchange for lease liabilities: Operating leases 250 326 Finance leases 18 61 |
Schedule of maturities of operating lease liabilities | December 31, 2020 (Millions) Finance Leases Operating Leases 2021 $ 20 $ 273 2022 18 201 2023 18 141 2024 16 93 2025 10 60 After 2025 41 162 Total $ 123 $ 930 Less: Amounts representing interest 8 65 Present value of future minimum lease 115 865 Less: Current obligations 22 256 Long-term obligations $ 93 $ 609 |
Schedule of maturities of finance lease liabilities | December 31, 2020 (Millions) Finance Leases Operating Leases 2021 $ 20 $ 273 2022 18 201 2023 18 141 2024 16 93 2025 10 60 After 2025 41 162 Total $ 123 $ 930 Less: Amounts representing interest 8 65 Present value of future minimum lease 115 865 Less: Current obligations 22 256 Long-term obligations $ 93 $ 609 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation | |
Stock-Based Compensation Expense | Stock-Based Compensation Expense Years ended December 31 (Millions) 2020 2019 2018 Cost of sales $ 50 $ 47 $ 48 Selling, general and administrative expenses 169 185 207 Research, development and related expenses 43 46 47 Stock-based compensation expenses $ 262 $ 278 $ 302 Income tax benefits (82) (141) (154) Stock-based compensation expenses (benefits), net of tax $ 180 $ 137 $ 148 |
Stock Option Activity | Stock Option Program The following table summarizes stock option activity for the years ended December 31: 2020 2019 2018 Weighted Weighted Weighted Number of Average Number of Average Number of Average (Options in thousands) Options Exercise Price Options Exercise Price Options Exercise Price Under option — January 1 33,675 $ 151.15 34,569 $ 138.98 34,965 $ 125.73 Granted 4,777 157.25 3,434 200.80 3,211 233.19 Exercised (2,759) 93.23 (4,193) 89.89 (3,482) 91.01 Forfeited (292) 181.33 (135) 201.27 (125) 188.00 December 31 35,401 $ 156.23 33,675 $ 151.15 34,569 $ 138.98 Options exercisable December 31 27,537 $ 149.67 26,487 $ 136.75 26,117 $ 121.98 |
Stock Option Assumptions | Stock Option Assumptions Annual 2020 2019 2018 Exercise price $ 157.24 $ 201.12 $ 233.63 Risk-free interest rate 1.5 % 2.6 % 2.7 % Dividend yield 2.7 % 2.5 % 2.4 % Expected volatility 19.7 % 20.4 % 21.0 % Expected life (months) 78 79 78 Black-Scholes fair value $ 21.58 $ 34.19 $ 41.59 |
Restricted Stock and Restricted Stock Units Activity | Restricted Stock and Restricted Stock Units The following table summarizes restricted stock and restricted stock unit activity for the years ended December 31: 2020 2019 2018 Weighted Weighted Weighted Average Average Average Number of Grant Date Number of Grant Date Number of Grant Date (Shares in thousands) Shares Fair Value Shares Fair Value Shares Fair Value Nonvested balance — As of January 1 1,573 $ 201.11 1,789 $ 180.02 1,994 $ 162.60 Granted Annual 733 157.29 564 200.41 467 233.61 Other 45 159.49 15 180.08 8 207.76 Vested (570) 176.20 (732) 149.33 (640) 164.83 Forfeited (59) 196.31 (63) 192.52 (40) 186.48 As of December 31 1,722 $ 189.78 1,573 $ 201.11 1,789 $ 180.02 |
Performance Shares Activity | The following table summarizes performance share activity for the years ended December 31: 2020 2019 2018 Weighted Weighted Weighted Average Average Average Number of Grant Date Number of Grant Date Number of Grant Date (Shares in thousands) Shares Fair Value Shares Fair Value Shares Fair Value Undistributed balance — As of January 1 444 $ 205.58 562 $ 188.96 686 $ 171.90 Granted 203 153.16 166 207.49 166 229.13 Distributed (206) 190.84 (210) 162.16 (206) 159.82 Performance change 25 166.49 (48) 204.73 (56) 198.39 Forfeited (43) 172.92 (26) 209.96 (28) 204.09 As of December 31 423 $ 188.61 444 $ 205.58 562 $ 188.96 |
Business Segments and Geograp_2
Business Segments and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Segments and Geographic Information | |
Business Segment Information | Year ended December 31, Net Sales (Millions) 2020 2019 2018 Safety and Industrial $ 11,767 $ 11,514 $ 12,414 Transportation and Electronics 8,827 9,591 10,104 Health Care 8,345 7,431 6,821 Consumer 5,336 5,151 5,127 Corporate and Unallocated (1) 110 50 Elimination of Dual Credit (2,090) (1,661) (1,751) Total Company $ 32,184 $ 32,136 $ 32,765 Operating Performance (Millions) Safety and Industrial $ 3,054 $ 2,510 $ 2,860 Transportation and Electronics 1,927 2,221 2,643 Health Care 1,828 1,858 1,918 Consumer 1,249 1,124 1,084 Elimination of Dual Credit (534) (409) (436) Total business segment operating income $ 7,524 $ 7,304 $ 8,069 Corporate and Unallocated Special items: Significant litigation-related (charges)/benefits $ (17) $ (762) $ (897) Gain/(loss) on sale of businesses 389 114 547 Divestiture-related restructuring actions (55) — (127) Other corporate expense - net (680) (482) (385) Total Corporate and Unallocated (363) (1,130) (862) Total Company operating income $ 7,161 $ 6,174 $ 7,207 Other expense/(income), net 450 462 207 Income before income taxes $ 6,711 $ 5,712 $ 7,000 Assets Depreciation & Amortization Capital Expenditures (Millions) 2020 2019 2020 2019 2018 2020 2019 2018 Safety and Industrial $ 11,711 $ 11,682 $ 562 $ 509 $ 493 $ 451 $ 391 $ 375 Transportation and Electronics 6,997 6,871 429 401 390 454 390 339 Health Care 14,531 14,790 626 392 262 251 264 245 Consumer 2,567 2,428 140 134 126 120 130 115 Corporate and Unallocated 11,538 8,888 154 157 217 225 524 503 Total Company $ 47,344 $ 44,659 $ 1,911 $ 1,593 $ 1,488 $ 1,501 $ 1,699 $ 1,577 |
Geographic Information | Property, Plant and Equipment - net (Millions) 2020 2019 Americas $ 5,752 $ 5,873 Asia Pacific 1,662 1,637 Europe, Middle East and Africa 2,007 1,823 Total Company $ 9,421 $ 9,333 |
Quarterly Data (Unaudited) (Tab
Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Data (Unaudited) | |
Schedule of Quarterly Financial Information | (Millions, except per-share amounts) First Second Third Fourth Year 2020 Quarter Quarter Quarter Quarter 2020 Net sales $ 8,075 $ 7,176 $ 8,350 $ 8,583 $ 32,184 Cost of sales 4,109 3,805 4,303 4,388 16,605 Net income including noncontrolling interest 1,294 1,287 1,417 1,390 5,388 Net income attributable to 3M 1,292 1,290 1,413 1,389 5,384 Earnings per share attributable to 3M common shareholders - basic 2.24 2.24 2.45 2.40 9.32 Earnings per share attributable to 3M common shareholders - diluted 2.22 2.22 2.43 2.38 9.25 (Millions, except per-share amounts) First Second Third Fourth Year 2019 Quarter Quarter Quarter Quarter 2019 Net sales $ 7,863 $ 8,171 $ 7,991 $ 8,111 $ 32,136 Cost of sales 4,310 4,313 4,188 4,325 17,136 Net income including noncontrolling interest 893 1,131 1,588 970 4,582 Net income attributable to 3M 891 1,127 1,583 969 4,570 Earnings per share attributable to 3M common shareholders - basic 1.54 1.95 2.75 1.68 7.92 Earnings per share attributable to 3M common shareholders - diluted 1.51 1.92 2.72 1.66 7.81 |
Significant Accounting Polici_4
Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign Currency | |||
Loss on deconsolidation of Venezuelan subsidiary | $ 162 | ||
Foreign currency transaction loss | $ 21 | $ (201) | |
Venezuela | |||
Foreign Currency | |||
Loss on deconsolidation of Venezuelan subsidiary | $ 162 | ||
Foreign currency transaction loss | $ 144 |
Significant Accounting Polici_5
Significant Accounting Policies - PP&E (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings and improvements | Maximum | |
Property, plant and equipment | |
Estimated useful life | 40 years |
Majority of estimated useful life | 40 years |
Buildings and improvements | Minimum | |
Property, plant and equipment | |
Estimated useful life | 10 years |
Majority of estimated useful life | 20 years |
Machinery and equipment | Maximum | |
Property, plant and equipment | |
Estimated useful life | 15 years |
Majority of estimated useful life | 10 years |
Machinery and equipment | Minimum | |
Property, plant and equipment | |
Estimated useful life | 3 years |
Majority of estimated useful life | 5 years |
Significant Accounting Polici_6
Significant Accounting Policies - Conditional Asset Retirement Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Asset retirement obligation | ||
Asset retirement obligation liability | $ 145 | $ 137 |
Significant Accounting Polici_7
Significant Accounting Policies - Acquired intangibles (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Customer related intangible assets | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 18 years | |
Other technology-based intangible assets | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 10 years | |
Definite-lived tradenames | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 16 years | |
Minimum | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 4 years | 6 years |
Minimum | Customer related intangible assets | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 10 years | |
Minimum | Patents | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 7 years | |
Minimum | Other technology-based intangible assets | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 4 years | |
Minimum | Definite-lived tradenames | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 6 years | |
Minimum | Other amortizable intangible assets | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 5 years | |
Maximum | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 20 years | 19 years |
Maximum | Customer related intangible assets | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 20 years | |
Maximum | Patents | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 20 years | |
Maximum | Other technology-based intangible assets | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 20 years | |
Maximum | Definite-lived tradenames | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 20 years | |
Maximum | Other amortizable intangible assets | ||
Finite Lived Intangible Assets | ||
Intangible assets useful life (in years) | 8 years |
Significant Accounting Polici_8
Significant Accounting Policies - Practical expedients (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Exemptions and Practical Expedients Applied or Elected | |
Practical Expedient, unfulfilled performance obligation | True |
Practical Expedient, relative to costs of obtaining a contract | true |
Practical Expedient, relative to estimation of variable consideration | true |
Practical Expedient, relative to required remaining performance obligations disclosure | true |
Significant Accounting Polici_9
Significant Accounting Policies - Accounts receivable and Allowances (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts receivable and allowance | |
Typical origination term for long-term customer receivables | 5 years |
Significant Accounting Polic_10
Significant Accounting Policies - Advertising and Merchandising Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Advertising and merchandising expense | |||
Advertising and merchandising expense | $ 278 | $ 348 | $ 396 |
Significant Accounting Polic_11
Significant Accounting Policies - Research and Development Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Research and Development Expense | |||
Research, development and related expenses | $ 1,878 | $ 1,911 | $ 1,821 |
Research and development expense | $ 1,146 | $ 1,253 | $ 1,253 |
Significant Accounting Polic_12
Significant Accounting Policies - Internal-use Software (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Capitalized internal-use software amortization period (in years) | 3 years |
Maximum | |
Capitalized internal-use software amortization period (in years) | 7 years |
Significant Accounting Polic_13
Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Deferred tax assets valuation allowance | $ 135 | $ 158 |
Significant Accounting Polic_14
Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share | |||||||||||
Options outstanding not included in computation of diluted earnings per share (in shares) | 18.1 | 8.9 | 2.9 | ||||||||
Numerator: | |||||||||||
Net income attributable to 3M | $ 1,389 | $ 1,413 | $ 1,290 | $ 1,292 | $ 969 | $ 1,583 | $ 1,127 | $ 891 | $ 5,384 | $ 4,570 | $ 5,349 |
Denominator: | |||||||||||
Denominator for weighted average 3M common shares outstanding - basic (in shares) | 577.6 | 577 | 588.5 | ||||||||
Dilution associated with the Company's stock-based compensation plans (in shares) | 4.6 | 8.1 | 13.5 | ||||||||
Denominator for weighted average 3M common shares outstanding - diluted (in shares) | 582.2 | 585.1 | 602 | ||||||||
Earnings per share attributable to 3M common shareholders - basic (in dollars per share) | $ 2.40 | $ 2.45 | $ 2.24 | $ 2.24 | $ 1.68 | $ 2.75 | $ 1.95 | $ 1.54 | $ 9.32 | $ 7.92 | $ 9.09 |
Earnings per share attributable to 3M common shareholders - diluted (in dollars per share) | $ 2.38 | $ 2.43 | $ 2.22 | $ 2.22 | $ 1.66 | $ 2.72 | $ 1.92 | $ 1.51 | $ 9.25 | $ 7.81 | $ 8.89 |
Significant Accounting Polic_15
Significant Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 31, 2020approach | |
Leases | |
Operating leases, existence of option to extend | true |
Finance leases, existence of option to extend | true |
Minimum | |
Leases | |
Number of options to renew for operating leases | 1 |
Number of options to renew for finance leases | 1 |
Maximum | |
Leases | |
Operating lease, term | 5 years |
Finance lease, term | 5 years |
Significant Accounting Polic_16
Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle | ||||
Stockholders' equity | $ 12,867 | $ 10,063 | ||
Lease assets | 864 | 858 | ||
Lease liabilities | 865 | 854 | ||
Total equity | 12,931 | 10,126 | $ 9,848 | $ 11,622 |
ASU 2016-02 Leases | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Total equity | 14 | |||
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Total equity | 43,761 | 42,135 | 40,636 | 39,115 |
Retained Earnings | ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Total equity | 853 | |||
Retained Earnings | ASU 2016-02 Leases | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Total equity | 14 | |||
Total Accumulated Other Comprehensive Income (Loss) | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Total equity | $ (7,661) | $ (8,139) | (6,866) | $ (7,026) |
Total Accumulated Other Comprehensive Income (Loss) | ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Total equity | $ (853) |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Contract Balance | |||
Software license contracts term | 1 year | 1 year | |
Deferred revenue | $ 498 | $ 430 | |
Operating Lease Revenue | $ 586 | ||
ASU 2014-09 Revenue from Contracts with Customers | Cumulative Effect, Period of Adoption, Adjustment | |||
Contract Balance | |||
Deferred income recognized as revenue | $ 410 | $ 600 |
Revenue - Disaggregated Revenue
Revenue - Disaggregated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue | |||||||||||
Net Sales | $ 8,583 | $ 8,350 | $ 7,176 | $ 8,075 | $ 8,111 | $ 7,991 | $ 8,171 | $ 7,863 | $ 32,184 | $ 32,136 | $ 32,765 |
Corporate and Unallocated | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | (1) | 110 | 50 | ||||||||
Elimination of Dual Credit | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | (2,090) | (1,661) | (1,751) | ||||||||
Americas | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 16,525 | 16,124 | 15,864 | ||||||||
Americas | Corporate and Unallocated | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | (1) | 109 | 51 | ||||||||
Americas | Elimination of Dual Credit | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | (1,000) | (735) | (745) | ||||||||
Asia Pacific | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 9,569 | 9,796 | 10,254 | ||||||||
Asia Pacific | Elimination of Dual Credit | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | (750) | (711) | (768) | ||||||||
Europe, Middle East and Africa | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 6,109 | 6,226 | 6,654 | ||||||||
Europe, Middle East and Africa | Corporate and Unallocated | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1 | ||||||||||
Europe, Middle East and Africa | Elimination of Dual Credit | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | (340) | (215) | (238) | ||||||||
Other Unallocated | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | (19) | (10) | (7) | ||||||||
Other Unallocated | Corporate and Unallocated | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | (1) | ||||||||||
United States | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 13,900 | 13,200 | 12,800 | ||||||||
China/Hong Kong | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 3,500 | 3,300 | 3,600 | ||||||||
Safety and Industrial | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 11,767 | 11,514 | 12,414 | ||||||||
Safety and Industrial | Americas | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 6,177 | 6,008 | 6,345 | ||||||||
Safety and Industrial | Asia Pacific | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 2,805 | 2,844 | 3,076 | ||||||||
Safety and Industrial | Europe, Middle East and Africa | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 2,791 | 2,666 | 2,996 | ||||||||
Safety and Industrial | Other Unallocated | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | (6) | (4) | (3) | ||||||||
Safety and Industrial | Abrasives | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1,180 | 1,387 | 1,512 | ||||||||
Safety and Industrial | Automotive Aftermarket | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1,102 | 1,229 | 1,356 | ||||||||
Safety and Industrial | Closure and Masking Systems | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 993 | 1,111 | 1,224 | ||||||||
Safety and Industrial | Communication Markets | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 175 | ||||||||||
Safety and Industrial | Electrical Markets | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1,121 | 1,200 | 1,244 | ||||||||
Safety and Industrial | Industrial Adhesives and Tapes | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 2,562 | 2,689 | 2,841 | ||||||||
Safety and Industrial | Personal Safety | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 4,433 | 3,504 | 3,601 | ||||||||
Safety and Industrial | Roofing Granules | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 390 | 366 | 353 | ||||||||
Safety and Industrial | Other Safety and Industrial | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | (14) | 28 | 108 | ||||||||
Transportation and Electronics | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 8,827 | 9,591 | 10,104 | ||||||||
Transportation and Electronics | Americas | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 2,455 | 2,901 | 3,015 | ||||||||
Transportation and Electronics | Asia Pacific | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 5,097 | 5,221 | 5,513 | ||||||||
Transportation and Electronics | Europe, Middle East and Africa | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1,282 | 1,472 | 1,577 | ||||||||
Transportation and Electronics | Other Unallocated | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | (7) | (3) | (1) | ||||||||
Transportation and Electronics | Advanced Materials | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1,036 | 1,245 | 1,236 | ||||||||
Transportation and Electronics | Automotive and Aerospace | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1,612 | 1,913 | 2,074 | ||||||||
Transportation and Electronics | Commercial Solutions | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1,529 | 1,785 | 1,863 | ||||||||
Transportation and Electronics | Electronics | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 3,767 | 3,711 | 3,971 | ||||||||
Transportation and Electronics | Transportation Safety | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 890 | 943 | 951 | ||||||||
Transportation and Electronics | Other Transportation and Electronics | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | (7) | (6) | 9 | ||||||||
Health Care | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 8,345 | 7,431 | 6,821 | ||||||||
Health Care | Americas | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 5,062 | 4,200 | 3,636 | ||||||||
Health Care | Asia Pacific | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1,478 | 1,490 | 1,453 | ||||||||
Health Care | Europe, Middle East and Africa | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1,809 | 1,743 | 1,733 | ||||||||
Health Care | Other Unallocated | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | (4) | (2) | (1) | ||||||||
Health Care | Drug Delivery | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 146 | 372 | 407 | ||||||||
Health Care | Food Safety | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 342 | 341 | 328 | ||||||||
Health Care | Health Information Systems | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1,140 | 1,177 | 837 | ||||||||
Health Care | Medical Solutions | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 4,787 | 3,439 | 3,073 | ||||||||
Health Care | Oral Care | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1,076 | 1,321 | 1,353 | ||||||||
Health Care | Separation and Purification Sciences | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 853 | 791 | 817 | ||||||||
Health Care | Other Health Care | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1 | (10) | 6 | ||||||||
Consumer | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 5,336 | 5,151 | 5,127 | ||||||||
Consumer | Americas | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 3,832 | 3,641 | 3,562 | ||||||||
Consumer | Asia Pacific | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 939 | 952 | 980 | ||||||||
Consumer | Europe, Middle East and Africa | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 567 | 559 | 586 | ||||||||
Consumer | Other Unallocated | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | (2) | (1) | (1) | ||||||||
Consumer | Consumer Health Care | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 366 | 379 | 389 | ||||||||
Consumer | Home Care | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1,066 | 991 | 1,013 | ||||||||
Consumer | Home Improvement | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 2,527 | 2,297 | 2,216 | ||||||||
Consumer | Stationery and Office | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | 1,223 | 1,378 | 1,399 | ||||||||
Consumer | Other Consumer | |||||||||||
Disaggregation of Revenue | |||||||||||
Net Sales | $ 154 | $ 106 | $ 110 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Acquisitions (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)item | |
Business Acquisitions Information | |||||
Accounts receivable | $ 370,000,000 | $ 370,000,000 | |||
Inventory | 186,000,000 | 186,000,000 | |||
Other current assets | 67,000,000 | 67,000,000 | |||
Property, plant and equipment | 155,000,000 | 155,000,000 | |||
Purchased finite-lived intangible assets | 4,081,000,000 | 4,081,000,000 | |||
Purchased goodwill | 3,469,000,000 | $ 0 | 3,469,000,000 | ||
Other assets | 131,000,000 | 131,000,000 | |||
Accounts payable and other liabilities | (565,000,000) | (565,000,000) | |||
Interest bearing debt | (2,573,000,000) | (2,573,000,000) | |||
Deferred tax asset/(liability) and accrued income taxes | (312,000,000) | (312,000,000) | |||
Net assets acquired | 5,009,000,000 | 5,009,000,000 | |||
Supplemental information: | |||||
Cash paid | 5,194,000,000 | ||||
Less: Cash acquired | 210,000,000 | ||||
Cash paid, net of cash acquired | 25,000,000 | 4,984,000,000 | $ (13,000,000) | ||
Consideration payable | 25,000,000 | 25,000,000 | |||
Net assets acquired | 5,009,000,000 | 5,009,000,000 | |||
Net sales | 32,184,000,000 | 32,136,000,000 | 32,765,000,000 | ||
Operating loss | $ (7,161,000,000) | (6,174,000,000) | $ (7,207,000,000) | ||
Number of business combinations completed | 0 | 0 | |||
Customer related intangible assets | |||||
Business Acquisitions Information | |||||
Purchased finite-lived intangible assets | 2,035,000,000 | $ 2,035,000,000 | |||
Intangible assets useful life (in years) | 18 years | ||||
Other technology-based intangible assets | |||||
Business Acquisitions Information | |||||
Purchased finite-lived intangible assets | 1,550,000,000 | $ 1,550,000,000 | |||
Intangible assets useful life (in years) | 10 years | ||||
Definite-lived tradenames | |||||
Business Acquisitions Information | |||||
Purchased finite-lived intangible assets | 496,000,000 | $ 496,000,000 | |||
Intangible assets useful life (in years) | 16 years | ||||
Maximum | |||||
Business Acquisitions Information | |||||
Intangible assets useful life (in years) | 20 years | 19 years | |||
Maximum | Customer related intangible assets | |||||
Business Acquisitions Information | |||||
Intangible assets useful life (in years) | 20 years | ||||
Maximum | Patents | |||||
Business Acquisitions Information | |||||
Intangible assets useful life (in years) | 20 years | ||||
Maximum | Other technology-based intangible assets | |||||
Business Acquisitions Information | |||||
Intangible assets useful life (in years) | 20 years | ||||
Maximum | Definite-lived tradenames | |||||
Business Acquisitions Information | |||||
Intangible assets useful life (in years) | 20 years | ||||
Maximum | Other amortizable intangible assets | |||||
Business Acquisitions Information | |||||
Intangible assets useful life (in years) | 8 years | ||||
Minimum | |||||
Business Acquisitions Information | |||||
Intangible assets useful life (in years) | 4 years | 6 years | |||
Minimum | Customer related intangible assets | |||||
Business Acquisitions Information | |||||
Intangible assets useful life (in years) | 10 years | ||||
Minimum | Patents | |||||
Business Acquisitions Information | |||||
Intangible assets useful life (in years) | 7 years | ||||
Minimum | Other technology-based intangible assets | |||||
Business Acquisitions Information | |||||
Intangible assets useful life (in years) | 4 years | ||||
Minimum | Definite-lived tradenames | |||||
Business Acquisitions Information | |||||
Intangible assets useful life (in years) | 6 years | ||||
Minimum | Other amortizable intangible assets | |||||
Business Acquisitions Information | |||||
Intangible assets useful life (in years) | 5 years | ||||
Weighted average | |||||
Business Acquisitions Information | |||||
Intangible assets useful life (in years) | 14 years | ||||
M*Modal | |||||
Business Acquisitions Information | |||||
Accounts receivable | 75,000,000 | $ 75,000,000 | |||
Other current assets | 2,000,000 | 2,000,000 | |||
Property, plant and equipment | 8,000,000 | 8,000,000 | |||
Purchased goodwill | 517,000,000 | 517,000,000 | |||
Other assets | 58,000,000 | 58,000,000 | |||
Accounts payable and other liabilities | (127,000,000) | (127,000,000) | |||
Interest bearing debt | (251,000,000) | (251,000,000) | |||
Deferred tax asset/(liability) and accrued income taxes | (24,000,000) | (24,000,000) | |||
Net assets acquired | 704,000,000 | 704,000,000 | |||
Supplemental information: | |||||
Cash paid | $ 700,000,000 | 708,000,000 | |||
Less: Cash acquired | 4,000,000 | ||||
Cash paid, net of cash acquired | 704,000,000 | ||||
Net assets acquired | 704,000,000 | 704,000,000 | |||
Assumed debt | $ 300,000,000 | ||||
Net sales | 300,000,000 | ||||
Operating loss | 25,000,000 | ||||
M*Modal | Customer related intangible assets | |||||
Business Acquisitions Information | |||||
Purchased finite-lived intangible assets | 275,000,000 | 275,000,000 | |||
M*Modal | Other technology-based intangible assets | |||||
Business Acquisitions Information | |||||
Purchased finite-lived intangible assets | 160,000,000 | 160,000,000 | |||
M*Modal | Definite-lived tradenames | |||||
Business Acquisitions Information | |||||
Purchased finite-lived intangible assets | 11,000,000 | 11,000,000 | |||
Acelity Inc. and its KCI subsidiaries | |||||
Business Acquisitions Information | |||||
Accounts receivable | 295,000,000 | 295,000,000 | |||
Inventory | 186,000,000 | 186,000,000 | |||
Other current assets | 65,000,000 | 65,000,000 | |||
Property, plant and equipment | 147,000,000 | 147,000,000 | |||
Purchased goodwill | 2,952,000,000 | 2,952,000,000 | |||
Other assets | 73,000,000 | 73,000,000 | |||
Accounts payable and other liabilities | (438,000,000) | (438,000,000) | |||
Interest bearing debt | (2,322,000,000) | (2,322,000,000) | |||
Deferred tax asset/(liability) and accrued income taxes | (288,000,000) | (288,000,000) | |||
Net assets acquired | 4,305,000,000 | 4,305,000,000 | |||
Supplemental information: | |||||
Cash paid | 4,486,000,000 | ||||
Less: Cash acquired | 206,000,000 | ||||
Cash paid, net of cash acquired | 4,280,000,000 | ||||
Consideration payable | 25,000,000 | 25,000,000 | |||
Net assets acquired | 4,305,000,000 | 4,305,000,000 | |||
Adjustments to purchase price allocation | $ 34,000,000 | ||||
Net sales | 350,000,000 | ||||
Operating loss | 45,000,000 | ||||
Acelity Inc. and its KCI subsidiaries | Customer related intangible assets | |||||
Business Acquisitions Information | |||||
Purchased finite-lived intangible assets | 1,760,000,000 | 1,760,000,000 | |||
Acelity Inc. and its KCI subsidiaries | Other technology-based intangible assets | |||||
Business Acquisitions Information | |||||
Purchased finite-lived intangible assets | 1,390,000,000 | 1,390,000,000 | |||
Acelity Inc. and its KCI subsidiaries | Definite-lived tradenames | |||||
Business Acquisitions Information | |||||
Purchased finite-lived intangible assets | $ 485,000,000 | $ 485,000,000 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Divestitures (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
May 31, 2020 | Jan. 31, 2020 | Aug. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | May 31, 2018 | Feb. 28, 2018 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Divestiture Information | |||||||||||
Proceeds from sale of businesses | $ 576 | $ 236 | $ 846 | ||||||||
Noncontrolling interest in the new company | 64 | 63 | |||||||||
Aggregate net after tax gain on sale | $ 303 | 129 | |||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | |||||||||||
Divestiture Information | |||||||||||
Disposal - Inventory | 70 | ||||||||||
Disposal - Property, plant and equipment | 150 | ||||||||||
Disposal - Intangible assets | 35 | ||||||||||
Disposal - Goodwill | 30 | ||||||||||
Aggregate operating income of divested businesses | $ 40 | $ 40 | $ 85 | ||||||||
Communication Markets Division | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||
Divestiture Information | |||||||||||
Annual sales of divested business | $ 400 | ||||||||||
Proceeds from sale of businesses | 772 | ||||||||||
Pre-tax gain on sale | $ 15 | $ 494 | |||||||||
Personal Safety Product Offerings | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||
Divestiture Information | |||||||||||
Annual sales of divested business | $ 15 | ||||||||||
Personal Safety Product Offerings | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Maximum | |||||||||||
Divestiture Information | |||||||||||
Pre-tax gain on sale | $ 20 | ||||||||||
Abrasives glass products business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||
Divestiture Information | |||||||||||
Annual sales of divested business | $ 10 | ||||||||||
Abrasives glass products business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Maximum | |||||||||||
Divestiture Information | |||||||||||
Pre-tax gain on sale | $ 15 | ||||||||||
Gas and flame detection business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||
Divestiture Information | |||||||||||
Annual sales of divested business | $ 120 | ||||||||||
Drug delivery business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||
Divestiture Information | |||||||||||
Annual sales of divested business | $ 380 | ||||||||||
Aggregate selling price relative to the divestiture transaction | 617 | ||||||||||
Proceeds from sale of businesses | 487 | ||||||||||
Interest-bearing security received in divestiture | 70 | ||||||||||
Pre-tax gain on sale | 387 | ||||||||||
Noncontrolling interest in the new company | $ 60 | ||||||||||
Noncontrolling interest in new company (as a percent) | 17.00% | ||||||||||
Advanced ballistic protection business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||
Divestiture Information | |||||||||||
Annual sales of divested business | $ 85 | ||||||||||
Proceeds from divested businesses | 86 | ||||||||||
Maximum contingent considerations depending on outcome of pending tenders | $ 25 | ||||||||||
Safety and Industrial | Gas and flame detection business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||
Divestiture Information | |||||||||||
Pre-tax gain on sale | $ 112 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill balance by business segment (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)item | |
Goodwill Information | |||||
Number of business combinations completed | 0 | 0 | |||
Purchased goodwill from acquisitions | $ 0 | $ 0 | $ 3,469,000,000 | ||
Goodwill acquired during the period which is deductible for tax purposes | 0 | ||||
Goodwill | |||||
Balance at the beginning of the period | $ 13,444,000,000 | 13,444,000,000 | 10,051,000,000 | ||
Acquisition activity | (34,000,000) | 3,469,000,000 | |||
Divestiture activity | (29,000,000) | (49,000,000) | |||
Translation and other | 421,000,000 | (27,000,000) | |||
Balance at the end of the period | 13,802,000,000 | 13,802,000,000 | 13,444,000,000 | $ 10,051,000,000 | |
Amount of Goodwill impairment | 0 | 0 | 0 | 0 | |
Safety and Industrial | |||||
Goodwill | |||||
Balance at the beginning of the period | 4,621,000,000 | 4,621,000,000 | 4,716,000,000 | ||
Divestiture activity | (49,000,000) | ||||
Translation and other | 66,000,000 | (46,000,000) | |||
Balance at the end of the period | 4,687,000,000 | 4,687,000,000 | 4,621,000,000 | 4,716,000,000 | |
Transportation and Electronics | |||||
Goodwill | |||||
Balance at the beginning of the period | 1,830,000,000 | 1,830,000,000 | 1,857,000,000 | ||
Divestiture activity | (10,000,000) | ||||
Translation and other | 38,000,000 | (27,000,000) | |||
Balance at the end of the period | 1,858,000,000 | 1,858,000,000 | 1,830,000,000 | 1,857,000,000 | |
Health Care | |||||
Goodwill | |||||
Balance at the beginning of the period | 6,739,000,000 | 6,739,000,000 | 3,248,000,000 | ||
Acquisition activity | (34,000,000) | 3,469,000,000 | |||
Divestiture activity | (19,000,000) | ||||
Translation and other | 306,000,000 | 22,000,000 | |||
Balance at the end of the period | 6,992,000,000 | 6,992,000,000 | 6,739,000,000 | 3,248,000,000 | |
Consumer | |||||
Goodwill | |||||
Balance at the beginning of the period | $ 254,000,000 | 254,000,000 | 230,000,000 | ||
Translation and other | 11,000,000 | 24,000,000 | |||
Balance at the end of the period | $ 265,000,000 | $ 265,000,000 | $ 254,000,000 | $ 230,000,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Acquired Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired intangible assets disclosures | ||
Total gross carrying amount | $ 8,213 | $ 8,261 |
Total accumulated amortization | (3,036) | (2,520) |
Total finite-lived intangible assets - net | 5,177 | 5,741 |
Non-amortizable intangible assets (primarily tradenames) | 658 | 638 |
Total intangible assets - net | $ 5,835 | 6,379 |
Indefinite lived tradenames years in existence | 60 years | |
Customer related intangible assets | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | $ 4,280 | 4,316 |
Total accumulated amortization | (1,422) | (1,180) |
Patents | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | 537 | 538 |
Total accumulated amortization | (512) | (499) |
Other technology-based intangible assets | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | 2,114 | 2,124 |
Total accumulated amortization | (638) | (435) |
Definite-lived tradenames | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | 1,178 | 1,158 |
Total accumulated amortization | (385) | (316) |
Other amortizable intangible assets | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | 104 | 125 |
Total accumulated amortization | $ (79) | $ (90) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedules for Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets | |||
Amortization expense for acquired intangible assets | $ 537 | $ 341 | $ 249 |
Expected amortization expense for acquired intangible assets recorded as of balance sheet date | |||
2021 | 528 | ||
2022 | 515 | ||
2023 | 488 | ||
2024 | 459 | ||
2025 | 428 | ||
After 2025 | $ 2,759 |
Restructuring Actions (Details)
Restructuring Actions (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 15 Months Ended | ||||||
Dec. 31, 2020USD ($)person | Jun. 30, 2020USD ($)person | Dec. 31, 2019USD ($)person | Jun. 30, 2019USD ($)person | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($)person | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2021USD ($)person | |
Restructuring Cost and Reserve | |||||||||
Restructuring charges | $ 46 | ||||||||
2020 Restructuring Actions | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring and related cost, number of positions affected | person | 2,100 | ||||||||
Restructuring charges | $ 137 | ||||||||
2020 Restructuring Actions | Operational/Marketing Capability Restructuring | Minimum | |||||||||
Restructuring Cost and Reserve | |||||||||
Pre-tax charge related to exit activities | $ 250 | ||||||||
2020 Restructuring Actions | Operational/Marketing Capability Restructuring | Maximum | |||||||||
Restructuring Cost and Reserve | |||||||||
Pre-tax charge related to exit activities | $ 300 | ||||||||
2020 Restructuring Actions | Operational/Marketing Capability Restructuring | Forecast | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring and related cost, number of positions affected | person | 2,900 | ||||||||
2020 Restructuring Actions | Drug delivery business | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring and related cost, number of positions affected | person | 1,300 | ||||||||
Restructuring charges | $ 55 | ||||||||
2020 Restructuring Actions | Employee-Related | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 101 | ||||||||
2020 Restructuring Actions | Asset-Related and Other | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 36 | ||||||||
2020 Restructuring Actions | Cost of sales | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 51 | ||||||||
2020 Restructuring Actions | Cost of sales | Drug delivery business | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 42 | ||||||||
2020 Restructuring Actions | Selling, general and administrative expenses | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 79 | ||||||||
2020 Restructuring Actions | Selling, general and administrative expenses | Drug delivery business | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 12 | ||||||||
2020 Restructuring Actions | Research, development and related expenses | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 7 | ||||||||
2020 Restructuring Actions | Research, development and related expenses | Drug delivery business | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | $ 1 | ||||||||
2020 Restructuring Actions | Other Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring and related cost, number of positions affected | person | 400 | ||||||||
Restructuring charges | $ 58 | ||||||||
2020 Restructuring Actions | Other Restructuring | Employee-Related | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 35 | ||||||||
2020 Restructuring Actions | Other Restructuring | Asset-Related and Other | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 23 | ||||||||
2020 Restructuring Actions | Other Restructuring | Cost of sales | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 13 | ||||||||
2020 Restructuring Actions | Other Restructuring | Selling, general and administrative expenses | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 37 | ||||||||
2020 Restructuring Actions | Other Restructuring | Research, development and related expenses | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 8 | ||||||||
2019 Restructuring Actions | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring and related cost, number of positions affected | person | 1,500 | 2,000 | |||||||
Restructuring charges | $ 134 | $ 148 | $ 246 | ||||||
Total income before income taxes impact | 282 | ||||||||
2019 Restructuring Actions | Employee-Related | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 206 | ||||||||
2019 Restructuring Actions | Asset-Related | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 40 | ||||||||
2019 Restructuring Actions | Cost of sales | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 72 | ||||||||
2019 Restructuring Actions | Selling, general and administrative expenses | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 137 | ||||||||
2019 Restructuring Actions | Research, development and related expenses | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 37 | ||||||||
2019 Restructuring Actions | Other expense (income), net | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 36 | ||||||||
2018 Restructuring Actions | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring and related cost, number of positions affected | person | 1,200 | ||||||||
Restructuring charges | $ 22 | $ 105 | $ 137 | ||||||
Adjustments for reductions in cost estimates | $ 10 | ||||||||
2018 Restructuring Actions | Cost of sales | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 27 | ||||||||
2018 Restructuring Actions | Selling, general and administrative expenses | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 105 | ||||||||
2018 Restructuring Actions | Research, development and related expenses | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | $ 5 | ||||||||
Corporate and Unallocated | 2020 Restructuring Actions | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 29 | ||||||||
Corporate and Unallocated | 2020 Restructuring Actions | Employee-Related | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 16 | ||||||||
Corporate and Unallocated | 2020 Restructuring Actions | Asset-Related and Other | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 13 | ||||||||
Corporate and Unallocated | 2020 Restructuring Actions | Other Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 23 | ||||||||
Corporate and Unallocated | 2020 Restructuring Actions | Other Restructuring | Asset-Related and Other | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 23 | ||||||||
Corporate and Unallocated | 2019 Restructuring Actions | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 140 | ||||||||
Corporate and Unallocated | 2019 Restructuring Actions | Employee-Related | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 100 | ||||||||
Corporate and Unallocated | 2019 Restructuring Actions | Asset-Related | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 40 | ||||||||
Safety and Industrial | 2020 Restructuring Actions | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 43 | ||||||||
Safety and Industrial | 2020 Restructuring Actions | Employee-Related | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 36 | ||||||||
Safety and Industrial | 2020 Restructuring Actions | Asset-Related and Other | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 7 | ||||||||
Safety and Industrial | 2020 Restructuring Actions | Other Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 7 | ||||||||
Safety and Industrial | 2020 Restructuring Actions | Other Restructuring | Employee-Related | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 7 | ||||||||
Safety and Industrial | 2019 Restructuring Actions | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 50 | ||||||||
Safety and Industrial | 2019 Restructuring Actions | Employee-Related | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 50 | ||||||||
Transportation and Electronics | 2020 Restructuring Actions | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 28 | ||||||||
Transportation and Electronics | 2020 Restructuring Actions | Employee-Related | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 16 | ||||||||
Transportation and Electronics | 2020 Restructuring Actions | Asset-Related and Other | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 12 | ||||||||
Transportation and Electronics | 2020 Restructuring Actions | Other Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 11 | ||||||||
Transportation and Electronics | 2020 Restructuring Actions | Other Restructuring | Employee-Related | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 11 | ||||||||
Transportation and Electronics | 2019 Restructuring Actions | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 31 | ||||||||
Transportation and Electronics | 2019 Restructuring Actions | Employee-Related | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 31 | ||||||||
Health Care | 2020 Restructuring Actions | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 26 | ||||||||
Health Care | 2020 Restructuring Actions | Employee-Related | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 23 | ||||||||
Health Care | 2020 Restructuring Actions | Asset-Related and Other | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 3 | ||||||||
Health Care | 2020 Restructuring Actions | Other Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 12 | ||||||||
Health Care | 2020 Restructuring Actions | Other Restructuring | Employee-Related | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 12 | ||||||||
Health Care | 2019 Restructuring Actions | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 17 | ||||||||
Health Care | 2019 Restructuring Actions | Employee-Related | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 17 | ||||||||
Consumer | 2020 Restructuring Actions | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 11 | ||||||||
Consumer | 2020 Restructuring Actions | Employee-Related | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 10 | ||||||||
Consumer | 2020 Restructuring Actions | Asset-Related and Other | Operational/Marketing Capability Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | $ 1 | ||||||||
Consumer | 2020 Restructuring Actions | Other Restructuring | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 5 | ||||||||
Consumer | 2020 Restructuring Actions | Other Restructuring | Employee-Related | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | $ 5 | ||||||||
Consumer | 2019 Restructuring Actions | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | 8 | ||||||||
Consumer | 2019 Restructuring Actions | Employee-Related | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges | $ 8 |
Restructuring Actions - Roll Fo
Restructuring Actions - Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
2020 Restructuring Actions | Other Restructuring | ||||||
Restructuring Reserve Roll Forward | ||||||
Restructuring actions balances, Beginning Balance | $ 58 | |||||
Non-cash changes | (23) | |||||
Cash Payments | (2) | |||||
Restructuring Reserve, Accrual Adjustment | (9) | |||||
Restructuring actions balances, Ending Balance | $ 24 | 24 | $ 24 | |||
2019 Restructuring Actions | ||||||
Restructuring Reserve Roll Forward | ||||||
Restructuring actions balances, Beginning Balance | $ 282 | 140 | ||||
Non-cash changes | (76) | |||||
Cash Payments | (52) | (51) | ||||
Restructuring Reserve, Accrual Adjustment | (14) | (59) | ||||
Restructuring actions balances, Ending Balance | 30 | 30 | 140 | 30 | $ 140 | |
2018 Restructuring Actions | ||||||
Restructuring Reserve Roll Forward | ||||||
Restructuring actions balances, Beginning Balance | $ 137 | 3 | 84 | |||
Non-cash changes | (12) | |||||
Cash Payments | (24) | (76) | ||||
Restructuring Reserve, Accrual Adjustment | (17) | (5) | ||||
Restructuring actions balances, Ending Balance | 3 | 84 | 3 | |||
Employee-Related | 2020 Restructuring Actions | Other Restructuring | ||||||
Restructuring Reserve Roll Forward | ||||||
Restructuring actions balances, Beginning Balance | 35 | |||||
Cash Payments | (2) | |||||
Restructuring Reserve, Accrual Adjustment | (9) | |||||
Restructuring actions balances, Ending Balance | 24 | 24 | 24 | |||
Employee-Related | 2019 Restructuring Actions | ||||||
Restructuring Reserve Roll Forward | ||||||
Restructuring actions balances, Beginning Balance | 242 | 140 | ||||
Non-cash changes | (36) | |||||
Cash Payments | (52) | (51) | ||||
Restructuring Reserve, Accrual Adjustment | (14) | (59) | ||||
Restructuring actions balances, Ending Balance | 30 | 30 | 140 | 30 | 140 | |
Employee-Related | 2018 Restructuring Actions | ||||||
Restructuring Reserve Roll Forward | ||||||
Restructuring actions balances, Beginning Balance | 125 | 3 | 84 | |||
Cash Payments | (24) | (76) | ||||
Restructuring Reserve, Accrual Adjustment | (17) | (5) | ||||
Restructuring actions balances, Ending Balance | 3 | 84 | $ 3 | |||
Asset-Related | 2020 Restructuring Actions | Other Restructuring | ||||||
Restructuring Reserve Roll Forward | ||||||
Restructuring actions balances, Beginning Balance | 23 | |||||
Non-cash changes | (23) | |||||
Asset-Related | 2019 Restructuring Actions | ||||||
Restructuring Reserve Roll Forward | ||||||
Restructuring actions balances, Beginning Balance | 40 | |||||
Non-cash changes | $ (40) | |||||
Asset-Related | 2018 Restructuring Actions | ||||||
Restructuring Reserve Roll Forward | ||||||
Restructuring actions balances, Beginning Balance | 12 | |||||
Non-cash changes | $ (12) | |||||
Operational/Marketing Capability Restructuring | 2020 Restructuring Actions | ||||||
Restructuring Reserve Roll Forward | ||||||
Expenses incurred | 137 | |||||
Non-cash changes | (36) | |||||
Restructuring actions balances, Ending Balance | 101 | 101 | 101 | |||
Operational/Marketing Capability Restructuring | Employee-Related | 2020 Restructuring Actions | ||||||
Restructuring Reserve Roll Forward | ||||||
Expenses incurred | 101 | |||||
Restructuring actions balances, Ending Balance | 101 | 101 | 101 | |||
Operational/Marketing Capability Restructuring | Asset-Related and Other | 2020 Restructuring Actions | ||||||
Restructuring Reserve Roll Forward | ||||||
Expenses incurred | 36 | |||||
Non-cash changes | (36) | |||||
Drug delivery business | 2020 Restructuring Actions | ||||||
Restructuring Reserve Roll Forward | ||||||
Restructuring actions balances, Beginning Balance | 55 | |||||
Non-cash changes | (14) | |||||
Cash Payments | (14) | |||||
Restructuring Reserve, Accrual Adjustment | (3) | |||||
Restructuring actions balances, Ending Balance | 24 | 24 | 24 | |||
Drug delivery business | Employee-Related | 2020 Restructuring Actions | ||||||
Restructuring Reserve Roll Forward | ||||||
Restructuring actions balances, Beginning Balance | 32 | |||||
Cash Payments | (14) | |||||
Restructuring Reserve, Accrual Adjustment | (3) | |||||
Restructuring actions balances, Ending Balance | 15 | 15 | 15 | |||
Drug delivery business | Asset-Related and Other | 2020 Restructuring Actions | ||||||
Restructuring Reserve Roll Forward | ||||||
Restructuring actions balances, Beginning Balance | 23 | |||||
Non-cash changes | (14) | |||||
Restructuring actions balances, Ending Balance | $ 9 | $ 9 | $ 9 |
Supplemental Income Statement_3
Supplemental Income Statement Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest expense | $ 529 | $ 448 | $ 350 | ||||
Interest income | (29) | (80) | (70) | ||||
Loss on extinguishment of debt | $ 10 | $ 10 | |||||
Pension and postretirement net periodic benefit cost (benefit) | (50) | (68) | (73) | ||||
Loss on deconsolidation of Venezuelan subsidiary | 162 | ||||||
Total | 450 | 462 | 207 | ||||
Funded | Qualified and Non-qualified Pension Benefits | United States | |||||||
Pension and postretirement net periodic benefit cost (benefit) | $ 269 | 243 | $ 244 | ||||
Pension settlement charge | $ 32 | $ 35 | |||||
Venezuela | |||||||
Loss on deconsolidation of Venezuelan subsidiary | $ 162 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other current assets | ||
Derivative assets-current | $ 34 | $ 75 |
Held-to-maturity debt security held in trust | 470 | |
Insurance related (receivables, prepaid expenses and other) | 125 | 172 |
Other | 166 | 174 |
Total other current assets | 325 | 891 |
Other assets | ||
Deferred income taxes | 871 | 521 |
Prepaid pension and post retirement | 630 | 230 |
Insurance related receivables and other | 49 | 67 |
Cash surrender value of life insurance policies | 258 | 254 |
Equity method investments | 134 | 70 |
Equity and other investments | 80 | 126 |
Other | 418 | 406 |
Total other assets | 2,440 | 1,674 |
Other current liabilities | ||
Accrued rebates | 639 | 594 |
Deferred revenue | 498 | 430 |
Derivative liabilities | 81 | 17 |
Employee benefits and withholdings | 192 | 229 |
Contingent liability claims and other | 556 | 566 |
Property, sales-related and other taxes | 308 | 247 |
Pension and postretirement benefits | 71 | 67 |
Other | 933 | 906 |
Total other current liabilities | 3,278 | 3,056 |
Other liabilities | ||
Long term income taxes payable | 1,511 | 1,507 |
Employee benefits | 410 | 312 |
Contingent liability claims and other | 815 | 787 |
Finance lease obligations | 93 | 111 |
Deferred income taxes | 333 | 301 |
Other | 300 | 257 |
Total other liabilities | $ 3,462 | $ 3,275 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - PP&E (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, plant and equipment - at cost | ||
Property and equipment, at cost | $ 26,650 | $ 26,124 |
Less: Accumulated depreciation | (17,229) | (16,791) |
Property, Plant and Equipment - net | 9,421 | 9,333 |
Land | ||
Property, plant and equipment - at cost | ||
Property and equipment, at cost | 338 | 351 |
Buildings and leasehold improvements | ||
Property, plant and equipment - at cost | ||
Property and equipment, at cost | 8,021 | 7,877 |
Machinery and equipment | ||
Property, plant and equipment - at cost | ||
Property and equipment, at cost | 16,866 | 16,586 |
Construction in progress | ||
Property, plant and equipment - at cost | ||
Property and equipment, at cost | $ 1,425 | $ 1,310 |
Supplemental Equity and Compr_3
Supplemental Equity and Comprehensive Income Information - Stock Narrative (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Supplemental Equity and Comprehensive Income Information | |||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 |
Common stock, shares issued (in shares) | 944,033,056 | 944,033,056 | 944,033,056 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 |
Supplemental Equity and Compr_4
Supplemental Equity and Comprehensive Income Information - Dividends and Transfer of Ownership Interest (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Dividends declared in current period (in dollars per share) | $ 1.47 | $ 1.47 | $ 1.47 | $ 1.47 | $ 1.44 | $ 1.44 | $ 1.44 | $ 1.44 | $ 1.36 | $ 1.36 | $ 1.36 | $ 1.36 | $ 5.88 | $ 5.76 | $ 5.44 |
3M India Limited | |||||||||||||||
3M's ownership (as a percent) | 75.00% | 75.00% |
Supplemental Equity and Compr_5
Supplemental Equity and Comprehensive Income Information - AOCI rf (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | $ 10,126 | $ 9,848 | $ 11,622 |
Other comprehensive income (loss), before tax: | |||
Balance at the end of the period | 12,931 | 10,126 | 9,848 |
ASU 2016-02 Leases | Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | 14 | ||
Other comprehensive income (loss), before tax: | |||
Balance at the end of the period | 14 | ||
Cumulative Translation Adjustment | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | (1,899) | (2,098) | (1,638) |
Other comprehensive income (loss), before tax: | |||
Amounts before reclassifications | 387 | 102 | (414) |
Amounts reclassified out | 142 | ||
Total other comprehensive income (loss), before tax | 387 | 244 | (414) |
Tax effect | 62 | (32) | (47) |
Total other comprehensive income (loss), net of tax | 449 | 212 | (461) |
Impact from purchase of subsidiary shares | 1 | ||
Balance at the end of the period | (1,450) | (1,899) | (2,098) |
Cumulative Translation Adjustment | ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | (13) | ||
Other comprehensive income (loss), before tax: | |||
Balance at the end of the period | (13) | ||
Defined Pension and Postretirement Plans Adjustment | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | (6,209) | (4,832) | (5,276) |
Other comprehensive income (loss), before tax: | |||
Amounts before reclassifications | (555) | (1,227) | 55 |
Amounts reclassified out | 676 | 459 | 606 |
Total other comprehensive income (loss), before tax | 121 | (768) | 661 |
Tax effect | 50 | 208 | (217) |
Total other comprehensive income (loss), net of tax | 171 | (560) | 444 |
Balance at the end of the period | (6,038) | (6,209) | (4,832) |
Defined Pension and Postretirement Plans Adjustment | ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | (817) | ||
Other comprehensive income (loss), before tax: | |||
Balance at the end of the period | (817) | ||
Cash Flow Hedging Instruments, Unrealized Gain (Loss) | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | (31) | ||
Other comprehensive income (loss), before tax: | |||
Amounts before reclassifications | (113) | (26) | |
Amounts reclassified out | (71) | (70) | |
Total other comprehensive income (loss), before tax | (184) | (96) | |
Tax effect | 42 | 24 | |
Total other comprehensive income (loss), net of tax | (142) | (72) | |
Balance at the end of the period | (173) | (31) | |
Cash Flow Hedging Instruments, Unrealized Gain (Loss) | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | 64 | (112) | |
Other comprehensive income (loss), before tax: | |||
Amounts before reclassifications | 133 | ||
Amounts reclassified out | 96 | ||
Total other comprehensive income (loss), before tax | 229 | ||
Tax effect | (53) | ||
Total other comprehensive income (loss), net of tax | 176 | ||
Balance at the end of the period | 64 | ||
Cash Flow Hedging Instruments, Unrealized Gain (Loss) | ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | (23) | ||
Other comprehensive income (loss), before tax: | |||
Balance at the end of the period | (23) | ||
Retained Earnings | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | 42,135 | 40,636 | 39,115 |
Other comprehensive income (loss), before tax: | |||
Balance at the end of the period | 43,761 | 42,135 | 40,636 |
Retained Earnings | ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | 853 | ||
Other comprehensive income (loss), before tax: | |||
Balance at the end of the period | 853 | ||
Retained Earnings | ASU 2016-02 Leases | Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | 14 | ||
Other comprehensive income (loss), before tax: | |||
Balance at the end of the period | 14 | ||
Total Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | (8,139) | (6,866) | (7,026) |
Other comprehensive income (loss), before tax: | |||
Amounts before reclassifications | (281) | (1,151) | (226) |
Amounts reclassified out | 605 | 531 | 702 |
Total other comprehensive income (loss), before tax | 324 | (620) | 476 |
Tax effect | 154 | 200 | (317) |
Total other comprehensive income (loss), net of tax | 478 | (420) | 159 |
Impact from purchase of subsidiary shares | 1 | ||
Balance at the end of the period | $ (7,661) | (8,139) | (6,866) |
Total Accumulated Other Comprehensive Income (Loss) | ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Attributable to 3M, Net of Tax Roll Forward | |||
Balance at the beginning of the period | $ (853) | ||
Other comprehensive income (loss), before tax: | |||
Balance at the end of the period | $ (853) |
Supplemental Equity and Compr_6
Supplemental Equity and Comprehensive Income Information - Reclass AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Deconsolidation of Venezuelan subsidiary | $ 162 | |||
Net of tax | $ (461) | (438) | $ (538) | |
Venezuela | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Deconsolidation of Venezuelan subsidiary | $ 162 | |||
Cumulative Translation Adjustment | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Deconsolidation of Venezuelan subsidiary | (142) | |||
Total before tax | (142) | |||
Net of tax | (142) | |||
Defined Pension and Postretirement Plans Adjustment | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Deconsolidation of Venezuelan subsidiary | (2) | |||
Transition asset | (2) | |||
Prior service benefit | 62 | 69 | 76 | |
Net actuarial loss | (716) | (478) | (678) | |
Curtailments/Settlements | (20) | (48) | (4) | |
Total before tax | (676) | (459) | (606) | |
Tax effect | 161 | 110 | 145 | |
Net of tax | (515) | (349) | (461) | |
Cash Flow Hedging Instruments, Unrealized Gain (Loss) | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Total before tax | 71 | 70 | ||
Tax effect | (17) | (17) | ||
Net of tax | 54 | 53 | ||
Cash Flow Hedging Instruments, Unrealized Gain (Loss) | Foreign currency exchange contracts | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Cost of sales | 80 | 74 | ||
Cash Flow Hedging Instruments, Unrealized Gain (Loss) | Interest rate contracts | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Interest expense | $ (9) | $ (4) | ||
Cash Flow Hedging Instruments, Unrealized Gain (Loss) | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Total before tax | (96) | |||
Tax effect | 19 | |||
Net of tax | (77) | |||
Cash Flow Hedging Instruments, Unrealized Gain (Loss) | Foreign currency exchange contracts | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Cost of sales | (95) | |||
Cash Flow Hedging Instruments, Unrealized Gain (Loss) | Interest rate contracts | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Interest expense | $ (1) |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Elements | |||
Cash income tax payments, net of refunds | $ 1,351 | $ 1,198 | $ 1,560 |
Cash interest payments | $ 524 | $ 370 | $ 314 |
Income Taxes - Income Before Ta
Income Taxes - Income Before Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Before Income Taxes | |||
United States | $ 3,720 | $ 3,008 | $ 3,487 |
International | 2,991 | 2,704 | 3,513 |
Income before income taxes | $ 6,711 | $ 5,712 | $ 7,000 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Currently payable | |||
Federal | $ 720 | $ 534 | $ 698 |
State | 123 | 59 | 109 |
International | 633 | 673 | 763 |
Tax Cuts and Jobs Act (TCJA) non-current transition tax provision | 176 | ||
Deferred | |||
Federal | (59) | (32) | (38) |
State | (20) | (26) | (17) |
International | (79) | (78) | (54) |
Total provision for income taxes | $ 1,318 | $ 1,130 | $ 1,637 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accruals not currently deductible | ||
Employee benefit costs | $ 232 | $ 169 |
Product and other claims | 338 | 280 |
Miscellaneous accruals | 153 | 119 |
Pension costs | 849 | 824 |
Stock-based compensation | 231 | 218 |
Net operating/capital loss/tax credit carryforwards | 148 | 150 |
Foreign tax credits | 100 | 66 |
Currency translation | 90 | |
Inventory | 54 | 70 |
Other | 112 | 113 |
Gross deferred tax assets | 2,307 | 2,009 |
Valuation allowance | (135) | (158) |
Total deferred tax assets | 2,172 | 1,851 |
Deferred tax liabilities: | ||
Product and other insurance receivables | (4) | |
Accelerated depreciation | (607) | (580) |
Intangible amortization | (1,023) | (1,021) |
Currency translation | (30) | |
Total deferred tax liabilities | (1,634) | (1,631) |
Net deferred tax assets | $ 538 | $ 220 |
Income Taxes - Cumulative Effec
Income Taxes - Cumulative Effect, Period of Adoption, Adjustment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | |
Income Taxes. | ||||
Interest and penalties related to unrecognized tax benefits, expense (benefit) recognized on a gross basis | $ 21 | $ 33 | $ 12 | |
Interest and penalties related to unrecognized tax benefits, accrued on a gross basis | 126 | 102 | ||
Deferred tax assets valuation allowance | $ 135 | $ 158 | ||
Effective tax rate (as a percent) | 19.60% | 19.80% | 23.40% | |
Increase in effective income tax rate from prior reporting period to current reporting period (as a percent) | (0.20%) | (3.60%) | ||
Previously undistributed earnings from non-U.S. subsidiaries permanently reinvested | $ 15,000 | |||
Reinvested earnings that may be repatriated from non-U.S. subsidiaries | $ 5,000 | |||
Undistributed earnings from non-U.S. subsidiaries permanently reinvested | $ 10,000 | |||
Statutory U.S. tax rate | 21.00% | 21.00% | 21.00% | |
Tax Cuts and Jobs Act of 2017 measurement period adjustment | $ 176 | |||
Period of time over which TCJA transition tax on certain unrepatriated earnings of foreign subsidiaries may be paid | 8 years | |||
Tax Cuts and Jobs Act of 2017 transition tax in current accrued income taxes payable | $ 69 | $ 33 | ||
Tax Cuts and Jobs Act of 2017 transition tax long term income taxes payable | $ 584 | $ 653 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Effective Income Tax Rate | |||
Statutory U.S. tax rate | 21.00% | 21.00% | 21.00% |
State income taxes--net of federal benefit | 1.20% | 0.50% | 1.00% |
International income taxes - net | (1.20%) | 0.20% | 0.20% |
Global Intangible Low Taxed Income (GILTI) | 0.80% | 1.80% | 1.10% |
Foreign Derived Intangible Income (FDII) | (1.80%) | (2.90%) | (1.30%) |
U.S. TCJA enactment - net impacts | 0.025 | ||
U.S. research and development credit | (1.00%) | (1.70%) | (1.50%) |
Reserves for tax contingencies | 0.50% | 2.30% | 1.20% |
Employee share-based payments | (0.50%) | (1.30%) | (1.40%) |
All other--net | 0.60% | (0.10%) | 0.60% |
Effective worldwide tax rate (as a percent) | 19.60% | 19.80% | 23.40% |
Income Taxes - Tax Effected Ope
Income Taxes - Tax Effected Operating Loss, Capital Loss, and Tax Credit Carryovers (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Federal jurisdiction | |
Tax effected operating loss, capital loss, and tax credit carryovers | |
Tax effected operating loss, capital loss, and tax credit carryovers | $ 108 |
Federal jurisdiction | Maximum | |
Tax effected operating loss, capital loss, and tax credit carryovers | |
Tax effected operating loss, capital loss, and tax credit carryovers, expiration date | 10 years |
Federal jurisdiction | Minimum | |
Tax effected operating loss, capital loss, and tax credit carryovers | |
Tax effected operating loss, capital loss, and tax credit carryovers, expiration date | 1 year |
State jurisdiction | |
Tax effected operating loss, capital loss, and tax credit carryovers | |
Tax effected operating loss, capital loss, and tax credit carryovers | $ 84 |
State jurisdiction | Maximum | |
Tax effected operating loss, capital loss, and tax credit carryovers | |
Tax effected operating loss, capital loss, and tax credit carryovers, expiration date | 11 years |
State jurisdiction | Minimum | |
Tax effected operating loss, capital loss, and tax credit carryovers | |
Tax effected operating loss, capital loss, and tax credit carryovers, expiration date | 1 year |
International jurisdiction | |
Tax effected operating loss, capital loss, and tax credit carryovers | |
Tax effected operating loss, capital loss, and tax credit carryovers | $ 58 |
International jurisdiction | Minimum | |
Tax effected operating loss, capital loss, and tax credit carryovers | |
Tax effected operating loss, capital loss, and tax credit carryovers, expiration date | 1 year |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of unrecognized tax benefits (UTB) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Federal, State and Foreign Tax | |||
Gross UTB Balance at January 1 | $ 1,167 | $ 647 | $ 530 |
Additions based on tax positions related to the current year | 74 | 76 | 129 |
Additions for tax positions of prior years | 106 | 132 | 146 |
Additions related to recent acquisitions | 396 | ||
Reductions for tax positions of prior years | (173) | (56) | (123) |
Settlements | (8) | (4) | (17) |
Reductions due to lapse of applicable statute of limitations | (53) | (24) | (18) |
Gross UTB Balance at December 31 | 1,113 | 1,167 | 647 |
Net UTB that would impact the effective tax rate at December 31 | $ 1,145 | $ 1,178 | $ 655 |
Income Taxes - Undistributed Ea
Income Taxes - Undistributed Earnings and Foreign Location Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes. | |||
Income tax benefits attributable to reduced tax rates or exemptions in foreign locations | $ 163 | $ 127 | $ 227 |
EPS impact of reduced tax rates or exemptions in foreign locations (in dollars per diluted share) | $ 0.28 | $ 0.22 | $ 0.38 |
Marketable Securities and Hel_3
Marketable Securities and Held-to-Maturity Debt Securities - Current and non-current (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Marketable Securities | ||
Current marketable securities | $ 404 | $ 98 |
Non-current marketable securities | 30 | 43 |
Total marketable securities | 434 | 141 |
Corporate debt securities | ||
Marketable Securities | ||
Current marketable securities | 7 | |
Commercial paper | ||
Marketable Securities | ||
Current marketable securities | 237 | 85 |
Certificates of deposit/time deposits | ||
Marketable Securities | ||
Current marketable securities | 31 | 10 |
U.S. treasury securities | ||
Marketable Securities | ||
Current marketable securities | 125 | |
U.S. municipal securities | ||
Marketable Securities | ||
Current marketable securities | 4 | 3 |
Non-current marketable securities | $ 30 | $ 43 |
Marketable Securities and Hel_4
Marketable Securities and Held-to-Maturity Debt Securities - Contractual maturity (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Marketable securities by contractual maturity | ||
Due in one year or less | $ 404 | |
Due after one year through five years | 15 | |
Due after five years through ten years | 15 | |
Total marketable securities | $ 434 | $ 141 |
Marketable Securities and Hel_5
Marketable Securities and Held-to-Maturity Debt Securities - Held-to-Maturity Debt Securities (Details) - USD ($) | May 31, 2020 | Dec. 31, 2019 |
Held-to-Maturity Debt Securities | ||
Held-to-maturity debt security | $ 0 | |
Third lien senior secured notes subject to in-substance defeasance (repaid in 2020) | ||
Held-to-Maturity Debt Securities | ||
Held-to-maturity debt security | $ 500,000,000 |
Long-Term Debt and Short-Term_3
Long-Term Debt and Short-Term Borrowings - Long-Term Debt (Details) € in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 31, 2019USD ($) | Feb. 28, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2004USD ($) | |
Long-Term Debt | ||||||||
Total long-term debt | $ 18,783 | $ 19,359 | ||||||
Long-term debt (excluding current portion) | 17,989 | 17,518 | ||||||
Third lien senior secured notes subject to in-substance defeasance (repaid in 2020) | ||||||||
Long-Term Debt | ||||||||
Total long-term debt | 463 | |||||||
Floating rate Euro medium term note (repaid in 2020) | ||||||||
Long-Term Debt | ||||||||
Total long-term debt | 726 | |||||||
Floating rate medium term note (repaid in 2020) | ||||||||
Long-Term Debt | ||||||||
Total long-term debt | 299 | |||||||
Floating rate medium term note (repaid in 2020) | ||||||||
Long-Term Debt | ||||||||
Total long-term debt | 200 | |||||||
Fixed rate medium term note (repaid in 2020) | ||||||||
Long-Term Debt | ||||||||
Principal amount | 400 | |||||||
Total long-term debt | 599 | |||||||
Fixed rate medium term note (repaid in 2020) | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 600 | |||||||
Total long-term debt | 199 | |||||||
Floating rate medium term note (repaid in 2020) | ||||||||
Long-Term Debt | ||||||||
Total long-term debt | 204 | |||||||
Floating rate Eurobond due 2021 | ||||||||
Long-Term Debt | ||||||||
Principal amount | € | € 300 | |||||||
Interest rate - effective | (0.28%) | |||||||
Total long-term debt | $ 374 | 346 | ||||||
Fixed rate Eurobond due 2021 | ||||||||
Long-Term Debt | ||||||||
Principal amount | € | € 300 | |||||||
Interest rate - effective | 1.97% | 1.97% | ||||||
Total long-term debt | $ 367 | 334 | ||||||
Fixed rate Euro medium term note due 2022 | ||||||||
Long-Term Debt | ||||||||
Principal amount | € | € 500 | |||||||
Interest rate - effective | 0.45% | 0.45% | ||||||
Total long-term debt | $ 612 | 557 | ||||||
Fixed rate medium term note due 2022 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 600 | $ 450 | ||||||
Interest rate - effective | 2.17% | 2.17% | 2.75% | |||||
Total long-term debt | $ 598 | 597 | ||||||
Fixed rate medium term note due 2022 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 450 | |||||||
Interest rate - effective | 2.76% | 2.76% | ||||||
Total long-term debt | $ 449 | 449 | ||||||
Fixed rate Euro medium term note due 2023 | ||||||||
Long-Term Debt | ||||||||
Principal amount | € | € 600 | |||||||
Interest rate - effective | 1.14% | 1.14% | ||||||
Total long-term debt | $ 731 | 665 | ||||||
Fixed rate medium term notes due 2023 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 650 | |||||||
Interest rate - effective | 2.26% | 2.26% | ||||||
Total long-term debt | $ 649 | 648 | ||||||
Fixed rate registered note due 2023 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 500 | $ 500 | ||||||
Interest rate - effective | 1.86% | 1.86% | 1.75% | |||||
Total long-term debt | $ 498 | 497 | ||||||
Floating rate medium term notes due 2024 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 300 | $ 300 | ||||||
Interest rate - effective | 0.52% | 0.52% | ||||||
Total long-term debt | $ 299 | 299 | ||||||
Fixed rate medium term notes due 2024 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 300 | $ 300 | ||||||
Interest rate - effective | 3.30% | 3.30% | 3.25% | |||||
Total long-term debt | $ 299 | 299 | ||||||
Fixed rate medium term notes due 2024 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 500 | $ 500 | ||||||
Interest rate - effective | 2.98% | 2.98% | 3.25% | |||||
Total long-term debt | $ 502 | 503 | ||||||
Fixed rate medium term note due 2025 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 550 | |||||||
Interest rate - effective | 3.04% | 3.04% | ||||||
Total long-term debt | $ 548 | 547 | ||||||
Fixed rate registered note due 2025 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 750 | $ 500 | $ 750 | |||||
Interest rate - effective | 2.12% | 2.12% | 2.65% | 2.00% | ||||
Total long-term debt | $ 744 | 743 | ||||||
Fixed rate registered note due 2025 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 500 | |||||||
Interest rate - effective | 2.67% | 2.67% | ||||||
Total long-term debt | $ 498 | |||||||
Fixed rate Euro medium term note due 2026 | ||||||||
Long-Term Debt | ||||||||
Principal amount | € | € 750 | |||||||
Interest rate - effective | 1.66% | 1.66% | ||||||
Total long-term debt | $ 908 | 826 | ||||||
Fixed rate medium term notes due 2026 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 650 | |||||||
Interest rate - effective | 2.37% | 2.37% | ||||||
Total long-term debt | $ 644 | 643 | ||||||
Fixed rate medium term notes due 2027 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 850 | |||||||
Interest rate - effective | 2.95% | 2.95% | ||||||
Total long-term debt | $ 843 | 842 | ||||||
Fixed rate 30-year debenture due 2028 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 220 | |||||||
Interest rate - effective | 6.44% | 6.44% | ||||||
Total long-term debt | $ 225 | 226 | ||||||
Fixed rate medium term notes due 2028 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 600 | $ 600 | ||||||
Interest rate - effective | 3.62% | 3.62% | 3.625% | |||||
Total long-term debt | $ 598 | 597 | ||||||
Fixed rate medium term notes due 2029 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 800 | $ 800 | ||||||
Interest rate - effective | 3.38% | 3.38% | 3.375% | |||||
Total long-term debt | $ 796 | 796 | ||||||
Fixed rate registered note due 2029 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 1,000 | $ 1,000 | ||||||
Interest rate - effective | 2.50% | 2.50% | 2.375% | |||||
Total long-term debt | $ 986 | 984 | ||||||
Fixed rate Euro medium term note due 2030 | ||||||||
Long-Term Debt | ||||||||
Principal amount | € | € 500 | |||||||
Interest rate - effective | 1.90% | 1.90% | ||||||
Total long-term debt | $ 604 | 549 | ||||||
Fixed rate registered note due 2030 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 600 | $ 600 | ||||||
Interest rate - effective | 3.09% | 3.09% | 3.05% | |||||
Total long-term debt | $ 595 | |||||||
Fixed rate Euro medium term notes due 2031 | ||||||||
Long-Term Debt | ||||||||
Principal amount | € | € 500 | |||||||
Interest rate - effective | 1.54% | 1.54% | ||||||
Total long-term debt | $ 608 | 554 | ||||||
Fixed rate 30-year bond due 2037 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 555 | |||||||
Interest rate - effective | 5.73% | 5.73% | ||||||
Total long-term debt | $ 551 | 551 | ||||||
Floating rate note due 2041 | ||||||||
Long-Term Debt | ||||||||
Principal amount | 96 | |||||||
Total long-term debt | 96 | 96 | ||||||
Fixed rate medium term note due 2044 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 325 | |||||||
Interest rate - effective | 4.05% | 4.05% | ||||||
Total long-term debt | $ 315 | 314 | ||||||
Floating rate note due 2044 | ||||||||
Long-Term Debt | ||||||||
Principal amount | 55 | $ 60 | ||||||
Total long-term debt | 53 | 53 | ||||||
Fixed rate medium term note due 2046 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 500 | |||||||
Interest rate - effective | 3.37% | 3.37% | ||||||
Total long-term debt | $ 476 | 475 | ||||||
Fixed rate medium term note due 2047 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 500 | |||||||
Interest rate - effective | 3.68% | 3.68% | ||||||
Total long-term debt | $ 492 | 492 | ||||||
Fixed rate medium term note due 2048 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 650 | $ 650 | ||||||
Interest rate - effective | 4.07% | 4.07% | 4.00% | |||||
Total long-term debt | $ 637 | 637 | ||||||
Fixed rate medium term note due 2048 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 500 | $ 500 | ||||||
Interest rate - effective | 3.78% | 3.78% | 4.00% | |||||
Total long-term debt | $ 505 | 506 | ||||||
Fixed rate registered note due 2049 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 1,000 | $ 1,000 | ||||||
Interest rate - effective | 3.37% | 3.37% | 3.25% | |||||
Total long-term debt | $ 969 | 968 | ||||||
Fixed rate registered note due 2050 | ||||||||
Long-Term Debt | ||||||||
Principal amount | $ 650 | $ 650 | ||||||
Interest rate - effective | 3.72% | 3.72% | 3.70% | |||||
Total long-term debt | $ 642 | |||||||
Other borrowings | ||||||||
Long-Term Debt | ||||||||
Interest rate - effective | 0.01% | 0.01% | ||||||
Total long-term debt | $ 72 | 76 | ||||||
Current portion of long-term debt | ||||||||
Long-Term Debt | ||||||||
Interest rate - effective | 0.78% | 0.78% | ||||||
Total long-term debt | $ 794 | $ 1,841 |
Long-Term Debt and Short-Term_4
Long-Term Debt and Short-Term Borrowings - Post-Swap Borrowing, Long-Term Debt, Including Current Portion (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Long-Term Debt | ||
Total long-term debt | $ 18,783 | $ 19,359 |
Fixed-rate debt | ||
Long-Term Debt | ||
Interest rate - effective | 2.80% | 3.01% |
Total long-term debt | $ 17,889 | $ 17,061 |
Floating-rate debt | ||
Long-Term Debt | ||
Interest rate - effective | 0.06% | 1.06% |
Total long-term debt | $ 894 | $ 2,298 |
Long-Term Debt and Short-Term_5
Long-Term Debt and Short-Term Borrowings - Short-Term Borrowings and Current Portion of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2019 |
Short-Term Borrowings and Current Portion of Long-Term Debt | |||
Long Term Debt | $ 18,783 | $ 19,359 | |
Short-term borrowings and current portion of long-term debt | $ 806 | 2,795 | |
Japan subsidiary credit facility | |||
Short-Term Borrowings and Current Portion of Long-Term Debt | |||
Short-term borrowings and current portion of long-term debt | 632 | ||
Germany subsidiary credit facility | |||
Short-Term Borrowings and Current Portion of Long-Term Debt | |||
Short-term borrowings and current portion of long-term debt | 168 | ||
Third lien senior secured notes (Third Lien Notes) maturing 2021 | Acelity Inc. and its KCI subsidiaries | |||
Short-Term Borrowings and Current Portion of Long-Term Debt | |||
Debt Instrument Interest Rate Effective Percentage | 12.50% | ||
Current portion of long-term debt | |||
Short-Term Borrowings and Current Portion of Long-Term Debt | |||
Debt Instrument Interest Rate Effective Percentage | 0.78% | ||
Long Term Debt | $ 794 | 1,841 | |
Commercial paper | |||
Short-Term Borrowings and Current Portion of Long-Term Debt | |||
Short-term borrowings and current portion of long-term debt | 150 | ||
Other borrowings | |||
Short-Term Borrowings and Current Portion of Long-Term Debt | |||
Debt Instrument Interest Rate Effective Percentage | 4.83% | ||
Short-term borrowings and current portion of long-term debt | $ 12 | $ 4 |
Long-Term Debt and Short-Term_6
Long-Term Debt and Short-Term Borrowings - Future Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Maturities of long-term debt | ||
2021 | $ 794 | |
2022 | 1,659 | |
2023 | 1,878 | |
2024 | 1,100 | |
2025 | 1,790 | |
After 2025 | 11,562 | |
Total long-term debt | 18,783 | $ 19,359 |
Floating rate note payments due in next twelve months | $ 53 |
Long-Term Debt and Short-Term_7
Long-Term Debt and Short-Term Borrowings - Credit Facilities (Details) € in Millions, $ in Millions, ¥ in Billions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2019EUR (€) | Dec. 31, 2020USD ($) | Nov. 30, 2019USD ($) | Sep. 30, 2019JPY (¥) | |
The five-year credit facility and the 364-day credit facilities. | ||||
Debt instrument | ||||
Credit facility amount prior to new agreement | $ 3,750 | |||
Term of debt instrument | 5 years | 5 years | ||
Current borrowing capacity | $ 3,000 | |||
Maximum increase available subject to lender approval | 1,000 | |||
Maximum borrowing capacity including portion subject to lender approval | 4,000 | |||
Principal amount | $ 3,000 | |||
364-day credit facility | ||||
Debt instrument | ||||
Term of debt instrument | 364 days | |||
Current borrowing capacity | $ 1,250 | |||
Principal amount | 1,250 | |||
Stand alone letters of credit and bank guarantees | ||||
Debt instrument | ||||
Amount of stand alone letters of credit and bank guarantees outstanding utilized in connection with normal business activities | $ 273 | |||
EBITDA Multiple Measurement Input | The five-year credit facility and the 364-day credit facilities | ||||
Debt instrument | ||||
Required minimum EBITDA to Interest Ratio | 3 | |||
Number of consecutive quarters over which the ratio of required EBITDA to Interest Ratio is calculated | 4 | |||
Actual EBITDA to Interest Ratio | 17 | |||
Japan subsidiary credit facility | Credit Facility expiring August 2021 | ||||
Debt instrument | ||||
Principal amount | ¥ | ¥ 80 | |||
Germany subsidiary credit facility | Credit Facility expiring November 2020 | ||||
Debt instrument | ||||
Principal amount | € | € 150 |
Long-Term Debt and Short-Term_8
Long-Term Debt and Short-Term Borrowings - Long-Term Debt Issuances (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | Feb. 28, 2019 | Sep. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2019 | |
Debt instrument | ||||||||
Long-term debt | $ 18,783 | $ 19,359 | ||||||
Aggregate fixed rate registered notes | ||||||||
Debt instrument | ||||||||
Principal amount | $ 1,750 | |||||||
Fixed rate registered note due 2025 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 500 | $ 750 | $ 750 | |||||
Term of debt instrument | 5 years | 5 years 6 months | ||||||
Interest rate - effective | 2.65% | 2.00% | 2.12% | |||||
Long-term debt | $ 744 | 743 | ||||||
Fixed rate registered note due 2030 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 600 | $ 600 | ||||||
Term of debt instrument | 10 years | |||||||
Interest rate - effective | 3.05% | 3.09% | ||||||
Long-term debt | $ 595 | |||||||
Fixed rate registered note due 2050 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 650 | $ 650 | ||||||
Term of debt instrument | 30 years | |||||||
Interest rate - effective | 3.70% | 3.72% | ||||||
Long-term debt | $ 642 | |||||||
The five-year credit facility and the 364-day credit facilities. | ||||||||
Debt instrument | ||||||||
Principal amount | $ 3,000 | |||||||
Term of debt instrument | 5 years | 5 years | ||||||
Aggregate fixed rate medium-term notes | ||||||||
Debt instrument | ||||||||
Principal amount | $ 2,250 | $ 2,250 | ||||||
Fixed rate registered notes which are due in 2023, 2025, 2029 and 2049 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 3,250 | |||||||
Fixed rate registered note due 2023 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 500 | $ 500 | ||||||
Term of debt instrument | 3 years 6 months | |||||||
Interest rate - effective | 1.75% | 1.86% | ||||||
Long-term debt | $ 498 | 497 | ||||||
Fixed rate registered note due 2029 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 1,000 | $ 1,000 | ||||||
Term of debt instrument | 10 years | |||||||
Interest rate - effective | 2.375% | 2.50% | ||||||
Long-term debt | $ 986 | 984 | ||||||
Fixed rate registered note due 2049 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 1,000 | $ 1,000 | ||||||
Term of debt instrument | 30 years | |||||||
Interest rate - effective | 3.25% | 3.37% | ||||||
Long-term debt | $ 969 | 968 | ||||||
Fixed rate medium term note due 2021 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 400 | |||||||
Term of debt instrument | 3 years | |||||||
Interest rate - effective | 3.00% | |||||||
Fixed rate medium term note due 2021 | Interest rate contracts | ||||||||
Debt instrument | ||||||||
Term of debt instrument | 3 years | |||||||
Variable rate | three-month LIBOR | |||||||
Fixed rate medium term note due 2022 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 450 | $ 600 | ||||||
Term of debt instrument | 3 years | |||||||
Interest rate - effective | 2.75% | 2.17% | ||||||
Long-term debt | $ 598 | 597 | ||||||
Fixed rate medium term notes due 2023 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 650 | |||||||
Interest rate - effective | 2.26% | |||||||
Long-term debt | $ 649 | 648 | ||||||
Fixed rate medium term notes due 2024 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 300 | $ 300 | ||||||
Term of debt instrument | 5 years 6 months | |||||||
Interest rate - effective | 3.25% | 3.30% | ||||||
Long-term debt | $ 299 | 299 | ||||||
Fixed rate medium term notes due 2024 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 500 | $ 500 | ||||||
Term of debt instrument | 5 years | |||||||
Interest rate - effective | 3.25% | 2.98% | ||||||
Long-term debt | $ 502 | 503 | ||||||
Fixed rate medium term note due 2025 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 550 | |||||||
Interest rate - effective | 3.04% | |||||||
Long-term debt | $ 548 | 547 | ||||||
Fixed rate medium term note due 2047 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 500 | |||||||
Interest rate - effective | 3.68% | |||||||
Long-term debt | $ 492 | 492 | ||||||
Floating rate medium term notes due 2024 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 300 | $ 300 | ||||||
Term of debt instrument | 5 years 6 months | |||||||
Interest rate - effective | 0.52% | |||||||
Long-term debt | $ 299 | 299 | ||||||
Variable rate | three-month LIBOR | |||||||
Fixed rate medium term notes due 2027 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 850 | |||||||
Interest rate - effective | 2.95% | |||||||
Long-term debt | $ 843 | 842 | ||||||
Fixed rate medium term notes due 2028 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 600 | $ 600 | ||||||
Term of debt instrument | 10 years | |||||||
Interest rate - effective | 3.625% | 3.62% | ||||||
Long-term debt | $ 598 | 597 | ||||||
Fixed rate medium term notes due 2029 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 800 | $ 800 | ||||||
Term of debt instrument | 10 years | |||||||
Interest rate - effective | 3.375% | 3.38% | ||||||
Long-term debt | $ 796 | 796 | ||||||
Fixed rate medium term note due 2048 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 650 | $ 650 | ||||||
Term of debt instrument | 30 years | |||||||
Interest rate - effective | 4.00% | 4.07% | ||||||
Long-term debt | $ 637 | 637 | ||||||
Fixed rate medium term note due 2048 | ||||||||
Debt instrument | ||||||||
Principal amount | $ 500 | $ 500 | ||||||
Term of debt instrument | 29 years 6 months | |||||||
Interest rate - effective | 4.00% | 3.78% | ||||||
Long-term debt | $ 505 | 506 | ||||||
Third lien senior secured notes (Third Lien Notes) maturing 2021 | Acelity Inc. and its KCI subsidiaries | ||||||||
Debt instrument | ||||||||
Principal amount | $ 445 | |||||||
Interest rate - effective | 12.50% | |||||||
Floating rate Euro medium term note (repaid in 2020) | ||||||||
Debt instrument | ||||||||
Long-term debt | $ 726 |
Long-Term Debt and Short-Term_9
Long-Term Debt and Short-Term Borrowings - Long-Term Debt Maturities and Extinguishments (Details) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2020USD ($) | Aug. 31, 2020USD ($) | May 31, 2020USD ($) | May 31, 2020EUR (€) | Jun. 30, 2019USD ($) | Nov. 30, 2018EUR (€) | Aug. 31, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Oct. 31, 2019USD ($) | |
Debt instrument | ||||||||||
Debt repurchases | $ 1,000 | $ 1,000 | ||||||||
Loss on early debt extinguishment | 10 | 10 | ||||||||
Repayment of debt | € 500 | $ 450 | $ 2,100 | |||||||
Debt assumed | 2,573 | |||||||||
Acelity Inc. and its KCI subsidiaries | ||||||||||
Debt instrument | ||||||||||
Debt assumed | $ 2,322 | |||||||||
Third lien senior secured notes (Third Lien Notes) maturing 2021 | Acelity Inc. and its KCI subsidiaries | ||||||||||
Debt instrument | ||||||||||
Principal amount | $ 445 | |||||||||
Repayment of debt | $ 445 | |||||||||
Floating rate Euro medium term note (repaid in 2020) | ||||||||||
Debt instrument | ||||||||||
Repayment of debt | € | € 650 | |||||||||
Floating rate medium term note (repaid in 2020) | ||||||||||
Debt instrument | ||||||||||
Repayment of debt | $ 500 | |||||||||
Fixed rate medium term note (repaid in 2020) | ||||||||||
Debt instrument | ||||||||||
Principal amount | $ 400 | $ 400 | ||||||||
Interest rate, stated percentage (as a percent) | 3.00% | 3.00% | ||||||||
Fixed rate medium term note (repaid in 2020) | ||||||||||
Debt instrument | ||||||||||
Principal amount | $ 600 | $ 600 | ||||||||
Interest rate, stated percentage (as a percent) | 1.625% | 1.625% | ||||||||
Fixed rate medium term notes repaid June 2019 | ||||||||||
Debt instrument | ||||||||||
Repayment of debt | $ 625 |
Long-Term Debt and Short-Ter_10
Long-Term Debt and Short-Term Borrowings - Floating Rate Notes (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Dec. 31, 2004 | Dec. 31, 2020 | |
Floating rate notes due 2027 and 2040 and 2041 | ||
Debt instrument | ||
Number of years after date of issuance that put options commence | 10 years | |
Floating rate notes due 2027 and 2040 and 2041 | Maximum | ||
Debt instrument | ||
Repurchase price of floating rate notes (as a percent) | 100.00% | |
Floating rate notes due 2027 and 2040 and 2041 | Minimum | ||
Debt instrument | ||
Repurchase price of floating rate notes (as a percent) | 99.00% | |
Floating rate note due 2044 | ||
Debt instrument | ||
Debt Instrument Term | 40 years | |
Debt Instrument, Face Amount | $ 60 | $ 55 |
Repurchase price of floating rate notes (as a percent) | 100.00% |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Plans - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
May 31, 2019USD ($)personitem | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Benefit Plan Information | |||||||
Defined benefit pension and postretirement plans adjustment | $ (171,000,000) | $ 560,000,000 | $ (444,000,000) | ||||
Qualified and Non-qualified Pension Benefits | Funded | |||||||
Benefit Plan Information | |||||||
Company contributions year to date | 153,000,000 | 207,000,000 | |||||
Qualified and Non-qualified Pension Benefits | United States | Funded | |||||||
Benefit Plan Information | |||||||
Company contributions year to date | 61,000,000 | 101,000,000 | |||||
Pension settlement charge | $ 32,000,000 | 35,000,000 | |||||
Special termination benefits - number of additional years of pension service | item | 1 | ||||||
Special termination benefits - number of additional years of age for certain benefit calculations | item | 1 | ||||||
Special termination benefits - number of participants | person | 800 | ||||||
Special termination benefits charge | $ 35,000,000 | ||||||
Qualified and Non-qualified Pension Benefits | International | Funded | |||||||
Benefit Plan Information | |||||||
Company contributions year to date | 92,000,000 | 106,000,000 | |||||
Pension settlement charge | (57,000,000) | 1,000,000 | |||||
Postretirement Benefits | Funded | |||||||
Benefit Plan Information | |||||||
Company contributions year to date | 3,000,000 | 3,000,000 | |||||
Pension settlement charge | (5,000,000) | ||||||
Maximum life insurance and death benefit to be paid under the modified 3M Retiree Life Insurance Plan postretirement benefit | $ 8,000 | ||||||
Defined benefit pension and postretirement plans adjustment | $ 150,000,000 | ||||||
Total Accumulated Other Comprehensive Income (Loss) | |||||||
Benefit Plan Information | |||||||
Defined benefit pension and postretirement plans adjustment | $ (171,000,000) | $ 560,000,000 | $ (444,000,000) | ||||
Total Accumulated Other Comprehensive Income (Loss) | International | Funded | United Kingdom Pension Plan | |||||||
Benefit Plan Information | |||||||
Defined benefit pension plan adjustment | $ 80,000,000 | ||||||
Other Assets | International | Funded | United Kingdom Pension Plan | |||||||
Benefit Plan Information | |||||||
Defined benefit pension plan adjustment | $ 80,000,000 |
Pension and Postretirement Be_4
Pension and Postretirement Benefit Plans - Components of net periodic benefit cost and other information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net periodic benefit cost (benefit) | |||
Net periodic benefit cost (benefit) | $ (50) | $ (68) | $ (73) |
Funded | Postretirement Benefits | |||
Net periodic benefit cost (benefit) | |||
Service cost | 43 | 43 | 52 |
Interest cost | 62 | 82 | 79 |
Expected return on plan assets | (79) | (81) | (84) |
Amortization of prior service benefit | (33) | (33) | (40) |
Amortization of net actuarial loss | 49 | 34 | 61 |
Settlements, curtailments, special terminations and other | 3 | 5 | |
Total non-operating expense (benefit) | 2 | 7 | 16 |
Net periodic benefit cost (benefit) | 45 | 50 | 68 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss | |||
Prior service cost (benefit) | (171) | ||
Amortization of prior service benefit | 33 | 33 | 40 |
Net actuarial (gain) loss | 108 | 119 | (127) |
Amortization of net actuarial loss | (49) | (34) | (61) |
Foreign currency | (7) | (1) | (2) |
Settlements, curtailments, special termination benefits and other | (3) | (5) | |
Total recognized in other comprehensive income (loss) | 82 | (59) | (150) |
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | 127 | (9) | (82) |
Funded | United States | Qualified and Non-qualified Pension Benefits | |||
Net periodic benefit cost (benefit) | |||
Service cost | 261 | 251 | 288 |
Interest cost | 499 | 620 | 563 |
Expected return on plan assets | (1,019) | (1,040) | (1,087) |
Amortization of prior service benefit | (24) | (24) | (23) |
Amortization of net actuarial loss | 536 | 366 | 503 |
Settlements, curtailments, special terminations and other | 16 | 70 | |
Total non-operating expense (benefit) | 8 | (8) | (44) |
Net periodic benefit cost (benefit) | 269 | 243 | 244 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss | |||
Amortization of prior service benefit | 24 | 24 | 23 |
Net actuarial (gain) loss | 733 | 926 | (44) |
Amortization of net actuarial loss | (536) | (366) | (503) |
Settlements, curtailments, special termination benefits and other | (16) | (35) | |
Total recognized in other comprehensive income (loss) | 205 | 549 | (524) |
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | 474 | 792 | (280) |
Funded | International | Qualified and Non-qualified Pension Benefits | |||
Net periodic benefit cost (benefit) | |||
Service cost | 152 | 131 | 143 |
Interest cost | 117 | 156 | 157 |
Expected return on plan assets | (306) | (299) | (307) |
Amortization of transition asset | 2 | ||
Amortization of prior service benefit | (5) | (12) | (13) |
Amortization of net actuarial loss | 131 | 78 | 114 |
Settlements, curtailments, special terminations and other | 1 | 10 | 4 |
Total non-operating expense (benefit) | (60) | (67) | (45) |
Net periodic benefit cost (benefit) | 92 | 64 | 98 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss | |||
Amortization of transition asset | (2) | ||
Prior service cost (benefit) | 3 | 7 | |
Amortization of prior service benefit | 5 | 12 | 13 |
Net actuarial (gain) loss | (358) | 344 | 194 |
Amortization of net actuarial loss | (131) | (78) | (114) |
Foreign currency | 79 | 7 | (83) |
Settlements, curtailments, special termination benefits and other | (1) | (8) | (4) |
Total recognized in other comprehensive income (loss) | (408) | 280 | 13 |
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | $ (316) | $ 344 | $ 111 |
Pension and Postretirement Be_5
Pension and Postretirement Benefit Plans - Plan Amount Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)plancountry | Dec. 31, 2019USD ($) | |
Unfunded Plans | ||
Benefit Plan Information | ||
Maximum amount of certain nonqualified unfunded pension and postretirement benefit plans obligations not included in benefit obligation reconciliation | $ | $ 40 | $ 40 |
Qualified and Non-qualified Pension Benefits | ||
Benefit Plan Information | ||
Company-sponsored retirement plans, minimum number of worldwide plans | plan | 75 | |
Company-sponsored retirement plans, number of countries | country | 28 | |
Qualified and Non-qualified Pension Benefits | International | ||
Benefit Plan Information | ||
Company-sponsored retirement plans, minimum number of international plans | plan | 70 | |
Company-sponsored retirement plans, number of countries | country | 25 |
Pension and Postretirement Be_6
Pension and Postretirement Benefit Plans - Opening Paragraph Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
United States | |||
Schedule Of Defined Contribution Plans Disclosures | |||
Company match of eligible compensation of employee contributions into 401(k) | 5.00% | ||
Company cash match of employee contributions for employees hired after January 1, 2009 | 100.00% | ||
Company contribution to employer retirement income account for employees hired on or after January 1, 2009 | 3.00% | ||
Expenses related to defined contribution plans | $ 201 | $ 186 | $ 173 |
International | |||
Schedule Of Defined Contribution Plans Disclosures | |||
Expenses related to defined contribution plans | $ 103 | $ 96 | $ 99 |
Maximum | United States | |||
Schedule Of Defined Contribution Plans Disclosures | |||
Company cash match of employee contributions for employees hired prior to January 1, 2009 | 60.00% | ||
Minimum | United States | |||
Schedule Of Defined Contribution Plans Disclosures | |||
Company cash match of employee contributions for employees hired prior to January 1, 2009 | 45.00% |
Pension and Postretirement Be_7
Pension and Postretirement Benefit Plans - Change in Benefit Obligation and Plan Assets and Amounts Recognized in Balance Sheet and AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amounts recognized in the Consolidated Balance Sheet | ||||
Non-current assets | $ 230 | $ 630 | $ 230 | |
Accrued benefit cost | ||||
Current liabilities | (67) | (71) | (67) | |
Non-current liabilities | (3,911) | (4,405) | (3,911) | |
Funded | Qualified and Non-qualified Pension Benefits | ||||
Change in plan assets | ||||
Company contributions | 153 | 207 | ||
Funded | Postretirement Benefits | ||||
Change in benefit obligation | ||||
Benefit obligation at beginning of year | 2,242 | 2,175 | ||
Service cost | 43 | 43 | $ 52 | |
Interest cost | 62 | 82 | 79 | |
Foreign exchange rate changes | (14) | |||
Plan amendments | (171) | |||
Actuarial (gain) loss | 176 | 225 | ||
Benefit payments | (107) | (112) | ||
Settlements, curtailments, special termination benefits and other | (5) | |||
Benefit obligation at end of year | 2,242 | 2,397 | 2,242 | 2,175 |
Change in plan assets | ||||
Fair value, beginning balance | 1,338 | 1,260 | ||
Actual return on plan assets | 147 | 187 | ||
Company contributions | 3 | 3 | ||
Benefit payments | (107) | (112) | ||
Settlements, curtailments, special termination benefits and other | (5) | |||
Fair value, ending balance | 1,338 | 1,376 | 1,338 | 1,260 |
Funded status at end of year | (904) | (1,021) | (904) | |
Accrued benefit cost | ||||
Current liabilities | (4) | (4) | (4) | |
Non-current liabilities | (900) | (1,017) | (900) | |
Ending balance | (904) | (1,021) | (904) | |
Amounts recognized in accumulated other comprehensive income | ||||
Net actuarial loss (gain) | 663 | 713 | 663 | |
Prior service cost (credit) | (262) | (230) | (262) | |
Ending balance | 401 | 483 | 401 | |
Funded | United States | Qualified and Non-qualified Pension Benefits | ||||
Change in benefit obligation | ||||
Benefit obligation at beginning of year | 17,935 | 15,948 | ||
Service cost | 261 | 251 | 288 | |
Interest cost | 499 | 620 | 563 | |
Actuarial (gain) loss | 1,785 | 2,209 | ||
Benefit payments | (1,104) | (1,128) | ||
Settlements, curtailments, special termination benefits and other | 32 | 35 | ||
Benefit obligation at end of year | 17,935 | 19,376 | 17,935 | 15,948 |
Change in plan assets | ||||
Fair value, beginning balance | 16,099 | 14,803 | ||
Actual return on plan assets | 2,071 | 2,323 | ||
Company contributions | 61 | 101 | ||
Benefit payments | (1,104) | (1,128) | ||
Fair value, ending balance | 16,099 | 17,127 | 16,099 | 14,803 |
Funded status at end of year | (1,836) | (2,249) | (1,836) | |
Accrued benefit cost | ||||
Current liabilities | (48) | (52) | (48) | |
Non-current liabilities | (1,788) | (2,197) | (1,788) | |
Ending balance | (1,836) | (2,249) | (1,836) | |
Amounts recognized in accumulated other comprehensive income | ||||
Net actuarial loss (gain) | 5,899 | 6,080 | 5,899 | |
Prior service cost (credit) | (128) | (104) | (128) | |
Ending balance | 5,771 | 5,976 | 5,771 | |
Accumulated benefit obligations in excess of plan assets | ||||
Projected benefit obligation | 17,935 | 19,376 | 17,935 | |
Accumulated benefit obligation | 17,125 | 18,441 | 17,125 | |
Fair value of plan assets | 16,099 | 17,127 | 16,099 | |
Total Accumulated Benefit Obligation | 17,125 | 18,441 | 17,125 | |
Funded | United States | Postretirement Benefits | ||||
Change in plan assets | ||||
Fair value, beginning balance | 1,338 | |||
Fair value, ending balance | 1,338 | 1,376 | 1,338 | |
Funded | International | Qualified and Non-qualified Pension Benefits | ||||
Change in benefit obligation | ||||
Benefit obligation at beginning of year | 7,931 | 6,965 | ||
Acquisitions/Transfers | 1 | 9 | ||
Service cost | 152 | 131 | 143 | |
Interest cost | 117 | 156 | 157 | |
Participant contributions | 9 | 7 | ||
Foreign exchange rate changes | 427 | 55 | ||
Plan amendments | 3 | |||
Actuarial (gain) loss | 464 | 906 | ||
Benefit payments | (274) | (302) | ||
Settlements, curtailments, special termination benefits and other | (57) | 1 | ||
Benefit obligation at end of year | 7,931 | 8,770 | 7,931 | 6,965 |
Change in plan assets | ||||
Fair value, beginning balance | 6,923 | 6,170 | ||
Acquisitions/Transfers | 4 | |||
Actual return on plan assets | 1,102 | 858 | ||
Company contributions | 92 | 106 | ||
Participant contributions | 9 | 7 | ||
Foreign exchange rate changes | 376 | 80 | ||
Benefit payments | (274) | (302) | ||
Settlements, curtailments, special termination benefits and other | (34) | |||
Fair value, ending balance | 6,923 | 8,194 | 6,923 | $ 6,170 |
Funded status at end of year | (1,008) | (576) | (1,008) | |
Amounts recognized in the Consolidated Balance Sheet | ||||
Non-current assets | 230 | 630 | 230 | |
Accrued benefit cost | ||||
Current liabilities | (15) | (15) | (15) | |
Non-current liabilities | (1,223) | (1,191) | (1,223) | |
Ending balance | (1,008) | (576) | (1,008) | |
Amounts recognized in accumulated other comprehensive income | ||||
Net transition obligation (asset) | 10 | 9 | 10 | |
Net actuarial loss (gain) | 1,967 | 1,557 | 1,967 | |
Prior service cost (credit) | (5) | (2) | (5) | |
Ending balance | 1,972 | 1,564 | 1,972 | |
Accumulated benefit obligations in excess of plan assets | ||||
Projected benefit obligation | 2,986 | 3,385 | 2,986 | |
Accumulated benefit obligation | 2,752 | 3,119 | 2,752 | |
Fair value of plan assets | 1,778 | 2,199 | 1,778 | |
Total Accumulated Benefit Obligation | $ 7,355 | $ 8,181 | $ 7,355 |
Pension and Postretirement Be_8
Pension and Postretirement Benefit Plans - Special termination benefits (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
May 31, 2019item | Jun. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Benefit Plan Information | |||||
Defined benefit pension and postretirement plans adjustment | $ (171) | $ 560 | $ (444) | ||
Qualified and Non-qualified Pension Benefits | United States | Funded | |||||
Benefit Plan Information | |||||
Special termination benefits - number of additional years of pension service | item | 1 | ||||
Special termination benefits - number of additional years of age for certain benefit calculations | item | 1 | ||||
Special termination benefits charge | $ 35 | ||||
Postretirement Benefits | Funded | |||||
Benefit Plan Information | |||||
Defined benefit pension and postretirement plans adjustment | $ 150 |
Pension and Postretirement Be_9
Pension and Postretirement Benefit Plans - US Pension Weighted Averages and Expected Returns Information (Details) - Funded - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Qualified and Non-qualified Pension Benefits | |||
Benefit Plan Information | |||
Company contributions | $ 153 | $ 207 | |
Qualified and Non-qualified Pension Benefits | Maximum | |||
Asset Allocation assumption | |||
Estimated pension contributions for next fiscal year | 200 | ||
Qualified and Non-qualified Pension Benefits | Minimum | |||
Asset Allocation assumption | |||
Estimated pension contributions for next fiscal year | 100 | ||
Postretirement Benefits | |||
Benefit Plan Information | |||
Company contributions | $ 3 | $ 3 | |
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 2.50% | 3.27% | 4.41% |
Percentage increase (decrease) in discount rate obligation from the prior year | (0.77%) | ||
Weighted-average assumptions used to determine net cost for years ended | |||
Discount rate - service cost | 3.45% | 4.53% | 3.86% |
Discount rate - interest cost | 3.00% | 4.15% | 3.52% |
Expected return on assets | 6.32% | 6.43% | 6.53% |
United States | |||
Weighted-average assumptions used to determine benefit obligations | |||
Original percentage medical inflation indexation by company in year | 3.00% | ||
Revised percentage medical inflation indexation by company in year | 1.50% | ||
United States | Qualified and Non-qualified Pension Benefits | |||
Benefit Plan Information | |||
Company contributions | $ 61 | $ 101 | |
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 2.55% | 3.25% | 4.36% |
Compensation rate increase | 3.21% | 3.21% | 4.10% |
Percentage increase (decrease) in discount rate obligation from the prior year | (0.70%) | ||
Weighted-average assumptions used to determine net cost for years ended | |||
Discount rate - service cost | 3.41% | 4.44% | 3.78% |
Discount rate - interest cost | 2.87% | 4.02% | 3.35% |
Expected return on assets | 6.75% | 7.00% | 7.25% |
Compensation rate increase | 3.21% | 4.10% | 4.10% |
United States | Pension and Postretirement Benefit plans | |||
Weighted-average assumptions used to determine benefit obligations | |||
Impact to the Projected Benefit Obligation (PBO) as a result of a change in discount rate | $ 1,800 | ||
International | Qualified and Non-qualified Pension Benefits | |||
Benefit Plan Information | |||
Company contributions | $ 92 | $ 106 | |
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 1.38% | 1.81% | 2.50% |
Compensation rate increase | 2.88% | 2.88% | 2.89% |
Weighted-average assumptions used to determine net cost for years ended | |||
Discount rate - service cost | 1.61% | 2.39% | 2.27% |
Discount rate - interest cost | 1.61% | 2.26% | 2.14% |
Expected return on assets | 4.70% | 4.90% | 5.02% |
Compensation rate increase | 2.88% | 2.89% | 2.89% |
Qualified | United States | Qualified and Non-qualified Pension Benefits | |||
Asset Allocation assumption | |||
Rate of return on plan assets | 13.60% | 16.30% | (0.50%) |
Average annual actual return on plan assets over the past 10 years | 8.80% | ||
Number years of used in the calculation of one average annual actual return on plan assets | 10 years | ||
Average annual actual return on plan assets over the past 25 years | 9.00% | ||
Number years of used in the calculation of a second average annual actual return on plan assets | 25 years | ||
Company's assumption for the expected return on plan assets | |||
Expected return on assets for next fiscal year | 6.50% | ||
Qualified | United States | Qualified and Non-qualified Pension Benefits | Primary U.S. Qualified Pension Plan | |||
Company's assumption for the expected return on plan assets | |||
Expected return on assets | 6.75% | ||
Qualified | United States | Qualified and Non-qualified Pension Benefits | Global equity | |||
Asset Allocation assumption | |||
Asset allocation assumption for next fiscal year | 22.00% | ||
Qualified | United States | Qualified and Non-qualified Pension Benefits | Private equity | |||
Asset Allocation assumption | |||
Asset allocation assumption for next fiscal year | 12.00% | ||
Qualified | United States | Qualified and Non-qualified Pension Benefits | Fixed income | |||
Asset Allocation assumption | |||
Asset allocation assumption for next fiscal year | 49.00% | ||
Qualified | United States | Qualified and Non-qualified Pension Benefits | Absolute return | |||
Asset Allocation assumption | |||
Asset allocation assumption for next fiscal year | 17.00% |
Pension and Postretirement B_10
Pension and Postretirement Benefit Plans - Future Benefit Payments (Details) - Funded $ in Millions | Dec. 31, 2020USD ($) |
Qualified and Non-qualified Pension Benefits | United States | |
Future Pension and Postretirement Benefit Payments | |
2021 Benefit Payments | $ 1,127 |
2022 Benefit Payments | 1,134 |
2023 Benefit Payments | 1,135 |
2024 Benefit Payments | 1,134 |
2025 Benefit Payments | 1,139 |
Next five years | 5,619 |
Qualified and Non-qualified Pension Benefits | International | |
Future Pension and Postretirement Benefit Payments | |
2021 Benefit Payments | 263 |
2022 Benefit Payments | 276 |
2023 Benefit Payments | 292 |
2024 Benefit Payments | 311 |
2025 Benefit Payments | 319 |
Next five years | 1,752 |
Postretirement Benefits | |
Future Pension and Postretirement Benefit Payments | |
2021 Benefit Payments | 127 |
2022 Benefit Payments | 133 |
2023 Benefit Payments | 140 |
2024 Benefit Payments | 145 |
2025 Benefit Payments | 152 |
Next five years | $ 792 |
Pension and Postretirement B_11
Pension and Postretirement Benefit Plans - Pension Asset Fair Values (Details) - Funded - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Qualified and Non-qualified Pension Benefits | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | $ 17,127 | $ 16,099 | $ 14,803 |
Qualified and Non-qualified Pension Benefits | International | |||
Benefit Plan Information | |||
Fair value of plan assets | 8,194 | 6,923 | 6,170 |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | 17,490 | 16,557 | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 5,525 | 5,612 | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 6,572 | 5,584 | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | International | |||
Benefit Plan Information | |||
Fair value of plan assets | 8,351 | 6,976 | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,675 | 1,873 | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 4,833 | 3,778 | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | International | Level 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 586 | 540 | |
Qualified and Non-qualified Pension Benefits | Global equity | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | 4,556 | 3,577 | |
Qualified and Non-qualified Pension Benefits | Global equity | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 4,123 | 3,160 | |
Qualified and Non-qualified Pension Benefits | Global equity | International | |||
Benefit Plan Information | |||
Fair value of plan assets | 2,034 | 2,312 | |
Qualified and Non-qualified Pension Benefits | Global equity | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,252 | 1,395 | |
Qualified and Non-qualified Pension Benefits | Global equity | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 704 | 894 | |
Qualified and Non-qualified Pension Benefits | Global equity | International | Level 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 4 | 5 | |
Qualified and Non-qualified Pension Benefits | Global equity | International | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 74 | 18 | |
Qualified and Non-qualified Pension Benefits | U.S. equities | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 2,082 | 1,575 | |
Qualified and Non-qualified Pension Benefits | U.S. equities | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 2,082 | 1,575 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. equities | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 2,041 | 1,585 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. equities | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 2,041 | 1,585 | |
Qualified and Non-qualified Pension Benefits | Growth equities | United States | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 433 | 417 | |
Qualified and Non-qualified Pension Benefits | Growth equities | International | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 756 | 1,434 | |
Qualified and Non-qualified Pension Benefits | Growth equities | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 547 | 638 | |
Qualified and Non-qualified Pension Benefits | Growth equities | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 209 | 796 | |
Qualified and Non-qualified Pension Benefits | Value equities | International | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,055 | 706 | |
Qualified and Non-qualified Pension Benefits | Value equities | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 659 | 696 | |
Qualified and Non-qualified Pension Benefits | Value equities | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 396 | 10 | |
Qualified and Non-qualified Pension Benefits | Core equities | International | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 149 | 154 | |
Qualified and Non-qualified Pension Benefits | Core equities | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 46 | 61 | |
Qualified and Non-qualified Pension Benefits | Core equities | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 99 | 88 | |
Qualified and Non-qualified Pension Benefits | Core equities | International | Level 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 4 | 5 | |
Qualified and Non-qualified Pension Benefits | Fixed income | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | 7,810 | 7,814 | |
Qualified and Non-qualified Pension Benefits | Fixed income | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,307 | 2,351 | |
Qualified and Non-qualified Pension Benefits | Fixed income | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 6,432 | 5,463 | |
Qualified and Non-qualified Pension Benefits | Fixed income | International | |||
Benefit Plan Information | |||
Fair value of plan assets | 4,708 | 3,475 | |
Qualified and Non-qualified Pension Benefits | Fixed income | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 138 | 378 | |
Qualified and Non-qualified Pension Benefits | Fixed income | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 3,991 | 2,635 | |
Qualified and Non-qualified Pension Benefits | Fixed income | International | Level 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 16 | 13 | |
Qualified and Non-qualified Pension Benefits | Fixed income | International | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 563 | 449 | |
Qualified and Non-qualified Pension Benefits | U.S. government securities | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 2,279 | 3,262 | |
Qualified and Non-qualified Pension Benefits | U.S. government securities | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,301 | 2,346 | |
Qualified and Non-qualified Pension Benefits | U.S. government securities | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 978 | 916 | |
Qualified and Non-qualified Pension Benefits | Domestic government debt | International | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,121 | 790 | |
Qualified and Non-qualified Pension Benefits | Domestic government debt | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 71 | 353 | |
Qualified and Non-qualified Pension Benefits | Domestic government debt | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,045 | 433 | |
Qualified and Non-qualified Pension Benefits | Domestic government debt | International | Level 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 5 | 4 | |
Qualified and Non-qualified Pension Benefits | Foreign government agency securities | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 71 | 61 | |
Qualified and Non-qualified Pension Benefits | Foreign government agency securities | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 71 | 61 | |
Qualified and Non-qualified Pension Benefits | Foreign government agency securities | International | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 509 | 625 | |
Qualified and Non-qualified Pension Benefits | Foreign government agency securities | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 33 | 22 | |
Qualified and Non-qualified Pension Benefits | Foreign government agency securities | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 476 | 603 | |
Qualified and Non-qualified Pension Benefits | Preferred and convertible securities | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 55 | 52 | |
Qualified and Non-qualified Pension Benefits | Preferred and convertible securities | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 55 | 52 | |
Qualified and Non-qualified Pension Benefits | U.S. corporate bonds | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 4,511 | 3,576 | |
Qualified and Non-qualified Pension Benefits | U.S. corporate bonds | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 10 | 10 | |
Qualified and Non-qualified Pension Benefits | U.S. corporate bonds | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 4,501 | 3,566 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. corporate bonds | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 820 | 759 | |
Qualified and Non-qualified Pension Benefits | Non-U.S. corporate bonds | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 820 | 759 | |
Qualified and Non-qualified Pension Benefits | Corporate debt securities | International | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 2,515 | 1,611 | |
Qualified and Non-qualified Pension Benefits | Corporate debt securities | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 34 | 3 | |
Qualified and Non-qualified Pension Benefits | Corporate debt securities | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 2,470 | 1,599 | |
Qualified and Non-qualified Pension Benefits | Corporate debt securities | International | Level 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 11 | 9 | |
Qualified and Non-qualified Pension Benefits | Other | United States | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 71 | ||
Qualified and Non-qualified Pension Benefits | Derivative instruments | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 3 | 104 | |
Qualified and Non-qualified Pension Benefits | Derivative instruments | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | (4) | (5) | |
Qualified and Non-qualified Pension Benefits | Derivative instruments | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 7 | 109 | |
Qualified and Non-qualified Pension Benefits | Private equity | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,871 | 1,945 | |
Qualified and Non-qualified Pension Benefits | Private equity | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 70 | 80 | |
Qualified and Non-qualified Pension Benefits | Private equity | International | |||
Benefit Plan Information | |||
Fair value of plan assets | 427 | 338 | |
Qualified and Non-qualified Pension Benefits | Private equity | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 128 | 6 | |
Qualified and Non-qualified Pension Benefits | Private equity | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 86 | 207 | |
Qualified and Non-qualified Pension Benefits | Private equity | International | Level 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 5 | 4 | |
Qualified and Non-qualified Pension Benefits | Growth equity | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 70 | 80 | |
Qualified and Non-qualified Pension Benefits | Growth equity | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 70 | 80 | |
Qualified and Non-qualified Pension Benefits | Real estate | International | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 219 | 217 | |
Qualified and Non-qualified Pension Benefits | Real estate | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 128 | 6 | |
Qualified and Non-qualified Pension Benefits | Real estate | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 86 | 207 | |
Qualified and Non-qualified Pension Benefits | Real estate | International | Level 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 5 | 4 | |
Qualified and Non-qualified Pension Benefits | Real estate | International | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 92 | 36 | |
Qualified and Non-qualified Pension Benefits | Partnership investments | United States | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,801 | 1,865 | |
Qualified and Non-qualified Pension Benefits | Partnership investments | International | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 116 | 85 | |
Qualified and Non-qualified Pension Benefits | Absolute return | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | 2,747 | 2,717 | |
Qualified and Non-qualified Pension Benefits | Absolute return | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | ||
Qualified and Non-qualified Pension Benefits | Absolute return | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 134 | 117 | |
Qualified and Non-qualified Pension Benefits | Absolute return | International | |||
Benefit Plan Information | |||
Fair value of plan assets | 981 | 717 | |
Qualified and Non-qualified Pension Benefits | Absolute return | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 8 | ||
Qualified and Non-qualified Pension Benefits | Absolute return | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 3 | |
Qualified and Non-qualified Pension Benefits | Absolute return | International | Level 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 561 | 518 | |
Qualified and Non-qualified Pension Benefits | Derivatives - absolute return | International | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 3 | |
Qualified and Non-qualified Pension Benefits | Derivatives - absolute return | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 3 | |
Qualified and Non-qualified Pension Benefits | Insurance | International | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 555 | 513 | |
Qualified and Non-qualified Pension Benefits | Insurance | International | Level 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 555 | 513 | |
Qualified and Non-qualified Pension Benefits | Fixed income and other | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 134 | 118 | |
Qualified and Non-qualified Pension Benefits | Fixed income and other | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | ||
Qualified and Non-qualified Pension Benefits | Fixed income and other | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 134 | 117 | |
Qualified and Non-qualified Pension Benefits | Hedge fund/fund of funds | United States | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 2,046 | 2,010 | |
Qualified and Non-qualified Pension Benefits | Partnership investments - absolute return | United States | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 567 | 589 | |
Qualified and Non-qualified Pension Benefits | Other | International | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 14 | 5 | |
Qualified and Non-qualified Pension Benefits | Other | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 8 | ||
Qualified and Non-qualified Pension Benefits | Other | International | Level 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 6 | 5 | |
Qualified and Non-qualified Pension Benefits | Other | International | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 1 | |
Qualified and Non-qualified Pension Benefits | Hedge funds | International | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 410 | 195 | |
Qualified and Non-qualified Pension Benefits | Cash and Cash Equivalent | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | 506 | 504 | |
Qualified and Non-qualified Pension Benefits | Cash and Cash Equivalent | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 25 | 20 | |
Qualified and Non-qualified Pension Benefits | Cash and Cash Equivalent | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 6 | 4 | |
Qualified and Non-qualified Pension Benefits | Cash and Cash Equivalent | International | |||
Benefit Plan Information | |||
Fair value of plan assets | 201 | 134 | |
Qualified and Non-qualified Pension Benefits | Cash and Cash Equivalent | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 149 | 94 | |
Qualified and Non-qualified Pension Benefits | Cash and Cash Equivalent | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 51 | 39 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 37 | 25 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 25 | 20 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 12 | 5 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | United States | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 475 | 480 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | International | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 200 | 133 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | International | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 149 | 94 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | International | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 51 | 39 | |
Qualified and Non-qualified Pension Benefits | Cash and cash equivalents | International | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 1 | |
Qualified and Non-qualified Pension Benefits | Repurchase Agreements And Derivative Margin Activity | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | (6) | (1) | |
Qualified and Non-qualified Pension Benefits | Repurchase Agreements And Derivative Margin Activity | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | (6) | (1) | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plans Reconciling Items | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | (363) | (458) | |
Qualified and Non-qualified Pension Benefits | Defined Benefit Plans Reconciling Items | International | |||
Benefit Plan Information | |||
Fair value of plan assets | (157) | (53) | |
Postretirement Benefits | |||
Benefit Plan Information | |||
Fair value of plan assets | $ 1,376 | 1,338 | $ 1,260 |
Percentage of plan assets within 401h account | 50.00% | ||
Postretirement Benefits | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | $ 1,376 | 1,338 | |
Postretirement Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | 1,401 | 1,361 | |
Postretirement Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 574 | 587 | |
Postretirement Benefits | Defined Benefit Plan Assets, Excluding Reconciling Items | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 547 | 508 | |
Postretirement Benefits | Global equity | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | 481 | 447 | |
Postretirement Benefits | Global equity | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 450 | 414 | |
Postretirement Benefits | U.S. equities | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 347 | 337 | |
Postretirement Benefits | U.S. equities | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 347 | 337 | |
Postretirement Benefits | Non-U.S. equities | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 103 | 77 | |
Postretirement Benefits | Non-U.S. equities | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 103 | 77 | |
Postretirement Benefits | Index and long/short equity | United States | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 31 | 33 | |
Postretirement Benefits | Fixed income | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | 638 | 638 | |
Postretirement Benefits | Fixed income | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 96 | 136 | |
Postretirement Benefits | Fixed income | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 539 | 502 | |
Postretirement Benefits | U.S. government securities | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 309 | 378 | |
Postretirement Benefits | U.S. government securities | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 95 | 136 | |
Postretirement Benefits | U.S. government securities | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 214 | 242 | |
Postretirement Benefits | Foreign government agency securities | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 6 | 6 | |
Postretirement Benefits | Foreign government agency securities | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 6 | 6 | |
Postretirement Benefits | U.S. corporate bonds | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 268 | 203 | |
Postretirement Benefits | U.S. corporate bonds | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | ||
Postretirement Benefits | U.S. corporate bonds | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 267 | 203 | |
Postretirement Benefits | Non-U.S. corporate bonds | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 52 | 46 | |
Postretirement Benefits | Non-U.S. corporate bonds | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 52 | 46 | |
Postretirement Benefits | Other | United States | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 3 | ||
Postretirement Benefits | Derivative instruments | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 5 | ||
Postretirement Benefits | Derivative instruments | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 5 | ||
Postretirement Benefits | Private equity | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | 98 | 96 | |
Postretirement Benefits | Private equity | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 3 | 4 | |
Postretirement Benefits | Growth equity | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 3 | 4 | |
Postretirement Benefits | Growth equity | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 3 | 4 | |
Postretirement Benefits | Partnership investments | United States | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 95 | 92 | |
Postretirement Benefits | Absolute return | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | 135 | 124 | |
Postretirement Benefits | Absolute return | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 7 | 5 | |
Postretirement Benefits | Fixed income and other | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 7 | 5 | |
Postretirement Benefits | Fixed income and other | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 7 | 5 | |
Postretirement Benefits | Hedge fund/fund of funds | United States | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 100 | 92 | |
Postretirement Benefits | Partnership investments - absolute return | United States | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 28 | 27 | |
Postretirement Benefits | Cash and Cash Equivalent | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | 49 | 56 | |
Postretirement Benefits | Cash and Cash Equivalent | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 25 | 33 | |
Postretirement Benefits | Cash and Cash Equivalent | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 1 | |
Postretirement Benefits | Cash and cash equivalents | United States | Levels 1, 2 and 3 | |||
Benefit Plan Information | |||
Fair value of plan assets | 26 | 34 | |
Postretirement Benefits | Cash and cash equivalents | United States | Level 1 | |||
Benefit Plan Information | |||
Fair value of plan assets | 25 | 33 | |
Postretirement Benefits | Cash and cash equivalents | United States | Level 2 | |||
Benefit Plan Information | |||
Fair value of plan assets | 1 | 1 | |
Postretirement Benefits | Cash and cash equivalents | United States | Fair Value Measured at Net Asset Value Per Share | |||
Benefit Plan Information | |||
Fair value of plan assets | 23 | 22 | |
Postretirement Benefits | Defined Benefit Plans Reconciling Items | United States | |||
Benefit Plan Information | |||
Fair value of plan assets | $ (25) | $ (23) |
Pension and Postretirement B_12
Pension and Postretirement Benefit Plans - Pension Asset Fair Value Level 3 (Details) - Qualified and Non-qualified Pension Benefits - International - Funded - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Benefit Plan Information | ||
Foreign currency exchange | $ (376) | $ (80) |
Level 3 | ||
Benefit Plan Information | ||
Defined benefit plan increase/decrease related to currency exchange rates | 43.5 | (7) |
Defined benefit plan increase/decrease related to aggregate of net purchases and net unrealized gains and losses | (0.5) | 24 |
Defined benefit plan increase/decrease related to Level 3 assets | $ 43 | $ 17 |
Derivatives - Cash Flow Hedges
Derivatives - Cash Flow Hedges (Details) - Cash flow hedge - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 | |
Derivatives in Cash Flow Hedging Relationships | |||||
Accumulated other comprehensive income (loss), unrealized gain (loss) on cash flow hedges | $ (173) | ||||
Interest rate contracts | |||||
Derivatives in Cash Flow Hedging Relationships | |||||
Accumulated other comprehensive income (loss), unrealized gain (loss) on cash flow hedges | $ (143) | ||||
Derivative notional amount | $ 700 | ||||
Additional derivative notional | $ 743 | $ 1,200 | |||
Termination Of Derivative | $ 500 | ||||
Treasury rate lock contracts | |||||
Derivatives in Cash Flow Hedging Relationships | |||||
Derivative notional amount | $ 500 | ||||
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 | $ (107) | ||||
Foreign currency exchange contracts | |||||
Derivatives in Cash Flow Hedging Relationships | |||||
Maximum length of time hedged in cash flow hedge | 36 months | ||||
After-tax net unrealized gain (loss) anticipated to be reclassified from AOCI to the income statement within next twelve months | $ (51) | ||||
After-tax net unrealized gain (loss) anticipated to be reclassified from AOCI to the income statement after the next fiscal year | (23) | ||||
After-tax unrealized gain (loss) anticipated to be reclassified from AOCI to the income statement after two fiscal years | $ (99) |
Derivatives - Cash Flow Hedge_2
Derivatives - Cash Flow Hedges - Gain (Loss) in OCI or Reclassified from AOCI (Details) - Cash flow hedge - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives in Cash Flow Hedging Relationships | ||
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative | $ (113) | $ (26) |
Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 71 | 70 |
Foreign currency exchange contracts | ||
Derivatives in Cash Flow Hedging Relationships | ||
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative | (111) | 96 |
Foreign currency exchange contracts | Cost of sales | ||
Derivatives in Cash Flow Hedging Relationships | ||
Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 80 | 74 |
Interest rate contracts | ||
Derivatives in Cash Flow Hedging Relationships | ||
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative | (2) | (122) |
Interest rate contracts | Interest expense | ||
Derivatives in Cash Flow Hedging Relationships | ||
Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | $ (9) | $ (4) |
Derivatives - Cash Flow Hedge_3
Derivatives - Cash Flow Hedges - Effective and Ineffective Portions (Details) - Cash flow hedge $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Derivatives in Cash Flow Hedging Relationships | |
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Effective Portion of Derivative | $ 133 |
Pretax Gain (Loss) Recognized in Income on Effective Portion of Derivative as a Result of Reclassification from Accumulated Other Comprehensive Income | (96) |
Foreign currency exchange contracts | |
Derivatives in Cash Flow Hedging Relationships | |
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Effective Portion of Derivative | 151 |
Foreign currency exchange contracts | Cost of sales | |
Derivatives in Cash Flow Hedging Relationships | |
Pretax Gain (Loss) Recognized in Income on Effective Portion of Derivative as a Result of Reclassification from Accumulated Other Comprehensive Income | (95) |
Interest rate contracts | |
Derivatives in Cash Flow Hedging Relationships | |
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Effective Portion of Derivative | (18) |
Interest rate contracts | Interest expense | |
Derivatives in Cash Flow Hedging Relationships | |
Pretax Gain (Loss) Recognized in Income on Effective Portion of Derivative as a Result of Reclassification from Accumulated Other Comprehensive Income | $ (1) |
Derivatives - Fair Value Hedges
Derivatives - Fair Value Hedges (Details) € in Millions, $ in Millions | 1 Months Ended | |||||
Sep. 30, 2018USD ($) | Aug. 31, 2015USD ($)DerivativeInstrument | Jun. 30, 2014USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2017USD ($) | Nov. 30, 2013EUR (€) | |
Fixed rate medium term note due 2019 | ||||||
Derivatives in Fair Value Hedging Relationships | ||||||
Principal amount | $ 625 | |||||
Fixed rate medium term note due 2021 | ||||||
Derivatives in Fair Value Hedging Relationships | ||||||
Principal amount | $ 400 | |||||
Term of debt instrument | 3 years | |||||
Interest rate contracts | Fixed rate medium term note due 2021 | ||||||
Derivatives in Fair Value Hedging Relationships | ||||||
Derivative notional amount | $ 200 | |||||
Term of debt instrument | 3 years | |||||
Variable rate | three-month LIBOR | |||||
Fair value hedges | Eurobond Due 2021 | ||||||
Derivatives in Fair Value Hedging Relationships | ||||||
Principal amount | € | € 600 | |||||
Fair value hedges | Fixed rate medium term note due 2019 | ||||||
Derivatives in Fair Value Hedging Relationships | ||||||
Principal amount | 625 | |||||
Fair value hedges | August 2015 medium term notes issued | ||||||
Derivatives in Fair Value Hedging Relationships | ||||||
Principal amount | $ 1,500 | |||||
Fair value hedges | June 2014 medium term notes issued | ||||||
Derivatives in Fair Value Hedging Relationships | ||||||
Principal amount | 950 | |||||
Fair value hedges | Fixed rate medium term note due 2021 | ||||||
Derivatives in Fair Value Hedging Relationships | ||||||
Principal amount | $ 400 | $ 400 | ||||
Variable rate | three-month LIBOR | |||||
Fair value hedges | Interest rate contracts | ||||||
Derivatives in Fair Value Hedging Relationships | ||||||
Number of interest rate swap contracts entered in period | DerivativeInstrument | 2 | |||||
Fair value hedges | Interest rate contracts | Eurobond Due 2021 | ||||||
Derivatives in Fair Value Hedging Relationships | ||||||
Derivative notional amount | € | € 300 | |||||
Fair value hedges | Interest rate contracts | Fixed rate medium term note due 2019 | ||||||
Derivatives in Fair Value Hedging Relationships | ||||||
Derivative notional amount | $ 600 | |||||
Variable rate | three-month LIBOR | |||||
Fair value hedges | Interest rate contracts | Fixed rate medium term note due 2018 | ||||||
Derivatives in Fair Value Hedging Relationships | ||||||
Derivative notional amount | $ 450 | |||||
Term of debt instrument | 3 years | |||||
Fair value hedges | Interest rate contracts | Fixed rate medium term note due 2020 | ||||||
Derivatives in Fair Value Hedging Relationships | ||||||
Derivative notional amount | $ 300 | $ 200 | ||||
Term of debt instrument | 5 years | |||||
Fair value hedges | Interest rate contracts | Fixed rate medium term note due 2021 | ||||||
Derivatives in Fair Value Hedging Relationships | ||||||
Derivative notional amount | $ 200 |
Derivatives - Fair Value Hedg_2
Derivatives - Fair Value Hedges - IS Location (Details) - Fair value hedges $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Derivatives in Fair Value Hedging Relationships | |
Gain (Loss) on Derivative Recognized in Income | $ (5) |
Gain (Loss) on Hedged Item Recognized in Income | 5 |
Interest rate contracts | Interest expense | |
Derivatives in Fair Value Hedging Relationships | |
Gain (Loss) on Derivative Recognized in Income | (5) |
Gain (Loss) on Hedged Item Recognized in Income | $ 5 |
Derivatives - Cumulative Basis
Derivatives - Cumulative Basis Adjustment for Fair Value Hedges (Details) - Fair value hedges - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives | ||
Hedged Liability, Fair Value Hedge | $ 598 | $ 1,274 |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 11 | 22 |
Short-term borrowings and current portion of long-term debt | ||
Derivatives | ||
Hedged Liability, Fair Value Hedge | 373 | 499 |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 5 | |
Long-term debt | ||
Derivatives | ||
Hedged Liability, Fair Value Hedge | 225 | 775 |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ 6 | $ 22 |
Derivatives - Net Investment He
Derivatives - Net Investment Hedges (Details) - Net Investment Hedges € in Millions | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | Mar. 31, 2018EUR (€) | |
Net investment hedges | |||||
Effective portion of net investment hedge reclassified out of other comprehensive income into income | $ 0 | $ 0 | $ 0 | ||
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income on Effective Portion of Instrument | (352,000,000) | 140,000,000 | 240,000,000 | ||
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | 5,000,000 | 20,000,000 | |||
Ineffective Portion of Gain (Loss) on Instrument and Amount Excluded from Effectiveness Testing Recognized in Income | 2,000,000 | ||||
Foreign currency forward/options contracts | |||||
Net investment hedges | |||||
Derivative notional amount | € | € 50 | ||||
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income on Effective Portion of Instrument | (1,000,000) | 32,000,000 | 18,000,000 | ||
Foreign currency forward/options contracts | Cost of sales | |||||
Net investment hedges | |||||
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | 5,000,000 | 20,000,000 | |||
Ineffective Portion of Gain (Loss) on Instrument and Amount Excluded from Effectiveness Testing Recognized in Income | 4,000,000 | ||||
Foreign currency denominated debt | |||||
Net investment hedges | |||||
Face amount of debt dedesignated as a net investment hedge | € | € 300 | ||||
Face amount of debt designated as a net investment hedge | € | € 3,500 | ||||
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income on Effective Portion of Instrument | $ (351,000,000) | $ 108,000,000 | 222,000,000 | ||
Foreign currency denominated debt | Cost of sales | |||||
Net investment hedges | |||||
Ineffective Portion of Gain (Loss) on Instrument and Amount Excluded from Effectiveness Testing Recognized in Income | $ (2,000,000) |
Derivatives - Not Designated (D
Derivatives - Not Designated (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives not designated as hedging instruments | |||
Gain (Loss) on Derivative Recognized in Income | $ 45 | $ (11) | $ (96) |
Foreign currency exchange contracts | Cost of sales | |||
Derivatives not designated as hedging instruments | |||
Gain (Loss) on Derivative Recognized in Income | 2 | 2 | 13 |
Foreign currency forward/options contracts | Interest expense | |||
Derivatives not designated as hedging instruments | |||
Gain (Loss) on Derivative Recognized in Income | $ 43 | $ (13) | $ (109) |
Derivatives - Statement of Inco
Derivatives - Statement of Income Location and Impact of Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cost of sales | |||
Derivatives in Fair Value Hedging Relationships | |||
Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of cash flow or fair value hedges are recorded | $ 16,605 | $ 17,136 | |
Other expense (income), net | |||
Derivatives in Fair Value Hedging Relationships | |||
Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of cash flow or fair value hedges are recorded | 450 | 462 | |
Cash flow hedge | |||
Gain or (loss) on cash flow hedging relationships: | |||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 71 | 70 | |
Cash flow hedge | Foreign currency exchange contracts | Cost of sales | |||
Gain or (loss) on cash flow hedging relationships: | |||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 80 | 74 | |
Cash flow hedge | Interest rate contracts | Other expense (income), net | |||
Gain or (loss) on cash flow hedging relationships: | |||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | (9) | (4) | |
Fair value hedges | |||
Gain or (loss) on fair value hedging relationships: | |||
Hedged items | $ (5) | ||
Fair value hedges | Interest rate contracts | Other expense (income), net | |||
Gain or (loss) on fair value hedging relationships: | |||
Hedged items | 4 | (8) | |
Fair value hedges | Derivatives designated as hedging instruments | Interest rate contracts | Other expense (income), net | |||
Gain or (loss) on fair value hedging relationships: | |||
Derivatives designated as hedging instruments | $ (4) | $ 8 |
Derivatives - BS Location (Deta
Derivatives - BS Location (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Location and Fair Value Amount of Derivative Instruments | ||
Fair Value of Derivative Instruments, Assets | $ 44 | $ 142 |
Fair Value of Derivative Instruments, Liabilities | 106 | 20 |
Derivatives designated as hedging instruments | ||
Location and Fair Value Amount of Derivative Instruments | ||
Fair Value of Derivative Instruments, Assets | 31 | 131 |
Fair Value of Derivative Instruments, Liabilities | 92 | 12 |
Derivatives designated as hedging instruments | Foreign currency exchange contracts | Other current assets | ||
Location and Fair Value Amount of Derivative Instruments | ||
Fair Value of Derivative Instruments, Assets | 14 | 64 |
Derivatives designated as hedging instruments | Foreign currency exchange contracts | Other assets | ||
Location and Fair Value Amount of Derivative Instruments | ||
Fair Value of Derivative Instruments, Assets | 10 | 50 |
Derivatives designated as hedging instruments | Foreign currency exchange contracts | Other current liabilities | ||
Location and Fair Value Amount of Derivative Instruments | ||
Fair Value of Derivative Instruments, Liabilities | 67 | 9 |
Derivatives designated as hedging instruments | Foreign currency exchange contracts | Other liabilities | ||
Location and Fair Value Amount of Derivative Instruments | ||
Fair Value of Derivative Instruments, Liabilities | 25 | 3 |
Derivatives designated as hedging instruments | Foreign currency exchange contracts | Current balance sheet location | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative Notional Amount | 1,630 | 1,995 |
Derivatives designated as hedging instruments | Foreign currency exchange contracts | Noncurrent balance sheet location | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative Notional Amount | 669 | 1,041 |
Derivatives designated as hedging instruments | Interest rate contracts | Other current assets | ||
Location and Fair Value Amount of Derivative Instruments | ||
Fair Value of Derivative Instruments, Assets | 7 | |
Derivatives designated as hedging instruments | Interest rate contracts | Other assets | ||
Location and Fair Value Amount of Derivative Instruments | ||
Fair Value of Derivative Instruments, Assets | 17 | |
Derivatives designated as hedging instruments | Interest rate contracts | Current balance sheet location | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative Notional Amount | 403 | 500 |
Derivatives designated as hedging instruments | Interest rate contracts | Noncurrent balance sheet location | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative Notional Amount | 603 | |
Derivatives not designated as hedging instruments | ||
Location and Fair Value Amount of Derivative Instruments | ||
Fair Value of Derivative Instruments, Assets | 13 | 11 |
Fair Value of Derivative Instruments, Liabilities | 14 | 8 |
Derivatives not designated as hedging instruments | Foreign currency exchange contracts | Other current assets | ||
Location and Fair Value Amount of Derivative Instruments | ||
Fair Value of Derivative Instruments, Assets | 13 | 11 |
Derivatives not designated as hedging instruments | Foreign currency exchange contracts | Other current liabilities | ||
Location and Fair Value Amount of Derivative Instruments | ||
Fair Value of Derivative Instruments, Liabilities | 14 | 8 |
Derivatives not designated as hedging instruments | Foreign currency exchange contracts | Current balance sheet location | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative Notional Amount | $ 3,166 | $ 2,684 |
Derivatives - Offsetting Assets
Derivatives - Offsetting Assets (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)Counterparty | Dec. 31, 2019USD ($) | |
Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties | ||
Number of master netting agreements supported by primary counterparty's parent guarantee | Counterparty | 17 | |
Number of credit support agreements by primary counterparty | Counterparty | 16 | |
Gross Amounts of Derivative Assets Presented in the Consolidated Balance Sheet | $ 44 | $ 142 |
Net Amount of Derivative Assets | 33 | 128 |
Derivatives subject to master netting agreements | ||
Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties | ||
Gross Amounts of Derivative Assets Presented in the Consolidated Balance Sheet | 44 | 142 |
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | 11 | 14 |
Net Amount of Derivative Assets | $ 33 | $ 128 |
Derivatives - Offsetting Liabil
Derivatives - Offsetting Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties | ||
Gross Amounts of Derivative Liabilities Presented in the Consolidated Balance Sheet | $ 106 | $ 20 |
Net Amount of Derivative Liabilities | 95 | 6 |
Derivatives subject to master netting agreements | ||
Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties | ||
Gross Amounts of Derivative Liabilities Presented in the Consolidated Balance Sheet | 106 | 20 |
Gross Amount of Eligible Offsetting Recognized Derivative Assets | 11 | 14 |
Net Amount of Derivative Liabilities | $ 95 | $ 6 |
Derivatives - Currency Effects
Derivatives - Currency Effects (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign Currency | ||
Year-on-year foreign currency transaction effects, including hedging impact, gain (loss) impact on pre-tax income | $ (21) | $ 201 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | $ 434 | $ 141 |
Gross Amounts of Derivative Assets Presented in the Consolidated Balance Sheet | 44 | 142 |
Gross Amounts of Derivative Liabilities Presented in the Consolidated Balance Sheet | 106 | 20 |
Fair value on a recurring basis | Foreign currency exchange contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Gross Amounts of Derivative Assets Presented in the Consolidated Balance Sheet | 37 | 125 |
Gross Amounts of Derivative Liabilities Presented in the Consolidated Balance Sheet | 106 | 20 |
Fair value on a recurring basis | Interest rate contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Gross Amounts of Derivative Assets Presented in the Consolidated Balance Sheet | 7 | 17 |
Fair value on a recurring basis | Corporate debt securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 7 | |
Fair value on a recurring basis | Commercial paper | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 237 | 85 |
Fair value on a recurring basis | Certificates of deposit/time deposits | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 31 | 10 |
Fair value on a recurring basis | U.S. treasury securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 125 | |
Fair value on a recurring basis | U.S. municipal securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 34 | 46 |
Fair value on a recurring basis | Investments | ||
Assets and Liabilities Measured on Recurring Basis | ||
Investments | 25 | |
Fair value on a recurring basis | Level 1 | U.S. treasury securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 125 | |
Fair value on a recurring basis | Level 1 | Investments | ||
Assets and Liabilities Measured on Recurring Basis | ||
Investments | 25 | |
Fair value on a recurring basis | Level 2 | Foreign currency exchange contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Gross Amounts of Derivative Assets Presented in the Consolidated Balance Sheet | 37 | 125 |
Gross Amounts of Derivative Liabilities Presented in the Consolidated Balance Sheet | 106 | 20 |
Fair value on a recurring basis | Level 2 | Interest rate contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Gross Amounts of Derivative Assets Presented in the Consolidated Balance Sheet | 7 | 17 |
Fair value on a recurring basis | Level 2 | Corporate debt securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 7 | |
Fair value on a recurring basis | Level 2 | Commercial paper | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 237 | 85 |
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 | 31 | 10 |
Fair value on a recurring basis | Level 3 | U.S. municipal securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | $ 34 | $ 46 |
Fair Value Measurements - Rec_2
Fair Value Measurements - Recurring Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3) | |||
Balance at the beginning of the period | $ 46 | $ 40 | $ 30 |
Total gains or losses included in earnings | 0 | 0 | 0 |
Total gains or losses included in other comprehensive income | 0 | 0 | 0 |
Purchases and issuances | 10 | 9 | 13 |
Sales and settlements | (22) | (3) | (3) |
Transfers in and/or out of Level 3 | 0 | 0 | 0 |
Balance at the end of the period | 34 | 46 | 40 |
Total gains or losses included in other comprehensive income | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Basis (Details) - Fair value on a nonrecurring basis - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets and Liabilities Measured on Recurring or Nonrecurring Basis | |||
Impairment of long-lived asset | $ 0 | $ 0 | |
Adjustment to the carrying value of equity securities using the measurement alternative | $ 22,000,000 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying Value | ||
Financial Instruments | ||
Long-term debt, excluding current portion - Fair Value | $ 17,989 | $ 17,518 |
Fair Value | ||
Financial Instruments | ||
Long-term debt, excluding current portion - Fair Value | $ 20,496 | $ 18,475 |
Commitments and Contingencies -
Commitments and Contingencies - Unconditional Purchase Obligations (Details) $ in Millions | Dec. 31, 2020USD ($) |
Unconditional Purchase Obligations | |
Due in 2021 | $ 294 |
Due in 2022 | 328 |
Due in 2023 | 216 |
Due in 2024 | 95 |
Due in 2025 | 46 |
Due after 2026 | 6 |
Total unconditional purchase obligation commitment | $ 985 |
Commitments and Contingencies_2
Commitments and Contingencies - Warranties and Guarantees (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Warranties/Guarantees: | ||
Accrued product warranty liabilities | $ 46 | $ 51 |
Commitments and Contingencies_3
Commitments and Contingencies - Respirator (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2018USD ($) | Apr. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)individual | Dec. 31, 2020USD ($)case | Dec. 31, 2020USD ($)lawsuit | Dec. 31, 2020USD ($) | Dec. 31, 2019individual | |
Respirator Mask/Asbestos Litigation | ||||||||||
Loss contingencies | ||||||||||
Total number of named claimants | individual | 2,075 | 1,727 | ||||||||
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 | 2 | ||||||||
Number of total claims taken to trial | case | 16 | |||||||||
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 | ||||||||||
Litigation settlement awarded | $ 2,000,000 | |||||||||
Number of unnamed defendant | individual | 2 | |||||||||
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 | ||||||||||
Number of additional defendants | two | |||||||||
Accrued loss contingency reserve | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Respirator Mask/Asbestos litigation - Excluding Aearo Technologies | ||||||||||
Loss contingencies | ||||||||||
Increase in liabilities, gross | $ 313,000,000 | 120,000,000 | ||||||||
Payments for fees and settlements related to litigation | 66,000,000 | |||||||||
Insurance receivables | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | |||||
Accrued loss contingency reserve | 662,000,000 | 662,000,000 | 662,000,000 | 662,000,000 | 662,000,000 | |||||
Respirator Mask/Asbestos Litigation - Aearo Technologies | ||||||||||
Loss contingencies | ||||||||||
Accrued loss contingency reserve | $ 28,000,000 | $ 28,000,000 | $ 28,000,000 | $ 28,000,000 | 28,000,000 | |||||
Increase (decrease) accrued loss contingency reserve | $ (37,000,000) | |||||||||
Quarterly fee paid to Cabot to retain responsibility and liability for products manufactured before July 11, 1995 | $ 100,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Environmental (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Mar. 31, 2020USD ($) | Apr. 30, 2019USD ($) | Jul. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2020USD ($)lawsuit | Dec. 31, 2020USD ($)individuallawsuit | Dec. 31, 2020USD ($)lawsuit | Dec. 31, 2020USD ($)itemlawsuit | Dec. 31, 2020USD ($)lawsuit | Dec. 31, 2020USD ($)lawsuitfacility | Dec. 31, 2020USD ($)lawsuitdefendant | Dec. 31, 2020USD ($)subsidiarylawsuit | Dec. 31, 2020USD ($)lawsuitperson | Dec. 31, 2020USD ($)lawsuitcompany | Dec. 31, 2019USD ($) | |
Environmental Matters - Remediation | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Accrued loss contingency reserve | $ | $ 23,000,000 | $ 23,000,000 | $ 23,000,000 | $ 23,000,000 | $ 23,000,000 | $ 23,000,000 | $ 23,000,000 | $ 23,000,000 | $ 23,000,000 | $ 23,000,000 | ||||||||
Environmental Matters - Remediation | Maximum | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of years remediation payments expected to be paid for applicable sites | 20 years | |||||||||||||||||
Environmental Matters - Other | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Accrued loss contingency reserve | $ | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Insurance receivables | $ | $ 8,000,000 | $ 8,000,000 | $ 8,000,000 | $ 8,000,000 | $ 8,000,000 | $ 8,000,000 | $ 8,000,000 | $ 8,000,000 | $ 8,000,000 | $ 8,000,000 | ||||||||
Environmental Matters - Regulatory Activities | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of years after phase-out decision in May 2000 that the Company stopped manufacturing and using vast majority of perfluorooctanyl compounds | 2 years | |||||||||||||||||
Amount of PFOA and PFOS found in drinking water, either individually or combined, that are allowed per the EPA's announced lifetime health advisory levels in parts per trillion | item | 70 | |||||||||||||||||
Amount of PFOA in drinking water allowed per provisional health advisories in parts per trillion (superseded) | item | 400 | |||||||||||||||||
Amount of PFOS in drinking water allowed per provisional health advisories in parts per trillion (superseded) | item | 200 | |||||||||||||||||
Number of PFCs the EPA has required to have public water system suppliers monitor | item | 6 | |||||||||||||||||
Number compounds EPA asked for public comment on draft toxicity assessments for PFAS compounds, including PFBS | item | 2 | |||||||||||||||||
Number of guidance documents released by the EPA related to PFAS | item | 2 | |||||||||||||||||
Number of public water supplies the EPA reported results | item | 4,920 | |||||||||||||||||
Number of water supplies that reported above advisory level with PFOA | item | 13 | |||||||||||||||||
Number of water supplies that reported above advisory level with PFOS | item | 46 | |||||||||||||||||
Number of water supplies that reported above advisory level with both PFOA and PFOS under technical advisory issued by EPA in September 2016 | item | 65 | |||||||||||||||||
Environmental Matters - Regulatory Activities | Minimum | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of water supply samples used to test for PFOA and PFOS under the EPA lifetime health advisory program | item | 1 | |||||||||||||||||
Environmental Matters - Regulatory Activities | U.S. District Court for the Northern District of Alabama | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of plaintiffs dismissed | individual | 5 | |||||||||||||||||
Environmental Matters - Regulatory Activities | Massachusetts | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of combined PFAS compounds detailed in published final regulations establishing a drinking water standard | item | 6 | |||||||||||||||||
Environmental Matters - Regulatory Activities | Minnesota Department of Health | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Amount of PFOA in drinking water allowed per Minnesota Department of Health in parts per trillion | item | 35 | |||||||||||||||||
Amount of PFOS in drinking water allowed per Minnesota Department of Health in parts per trillion | item | 27 | |||||||||||||||||
Additional amounts of PFOS in drinking water allowed per Minnesota Department of Health in parts per trillion | item | 15 | |||||||||||||||||
Amount of PFHxS in drinking water allowed per Minnesota Department of Health in parts per trillion | item | 47 | |||||||||||||||||
Amount of PFBS in drinking water allowed per Minnesota Department of Health in parts per billion | item | 2 | |||||||||||||||||
Environmental Matters - Regulatory Activities | Vermont | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of other perfluorinated compounds in drinking water standards | item | 3 | |||||||||||||||||
Environmental Matters - Litigation | U.S. District Court for the Northern District of Alabama | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of plaintiffs | individual | 55 | |||||||||||||||||
Number of additional plaintiffs | individual | 37 | |||||||||||||||||
Environmental Matters - Litigation | Alabama | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Litigation settlement awarded | $ | $ 35,000,000 | |||||||||||||||||
Number of local water works for whom the water authority supplies water | item | 5 | |||||||||||||||||
Environmental Matters - Litigation | Alabama | Minimum | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of plaintiffs | individual | 200 | |||||||||||||||||
Environmental Matters - Litigation | Decatur, Alabama | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of closed municipal landfills | item | 3 | |||||||||||||||||
Number of putative class action and other lawsuits | 2 | |||||||||||||||||
Environmental Matters - Litigation | Minnesota | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Litigation settlement awarded | $ | $ 897,000,000 | |||||||||||||||||
Number of recommended options for utilizing the Water Quality and Sustainability Fund seeking public comment | item | 3 | |||||||||||||||||
Settlement amount paid | $ | $ 850,000,000 | |||||||||||||||||
Environmental Matters - Litigation | Lake Elmo, Minnesota | Maximum | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Settlement amount paid | $ | $ 5,000,000 | |||||||||||||||||
Environmental Matters - Litigation | New Jersey | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of lawsuits filed | 2 | |||||||||||||||||
Number of additional new claims filed | 2 | |||||||||||||||||
Number of additional defendants | defendant | 6 | |||||||||||||||||
Environmental Matters - Litigation | Salem County, New Jersey | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of facilities related to the manufacture and disposal of PFAS | facility | 2 | |||||||||||||||||
Environmental Matters - Litigation | Michigan | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of lawsuits filed | 2 | |||||||||||||||||
Environmental Matters - Litigation | Federal court of Michigan | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of lawsuits filed | 1 | |||||||||||||||||
Environmental Matters - Litigation | State court in New York | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of lawsuits filed | 4 | |||||||||||||||||
Environmental Matters - Litigation | State Court of Lawrence County, Alabama | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of additional plaintiffs | individual | 557 | |||||||||||||||||
Number of amended additional plaintiffs | individual | 331 | |||||||||||||||||
Environmental Matters - Litigation | New Hampshire | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of lawsuits filed | 2 | |||||||||||||||||
Number of additional defendants | defendant | 7 | |||||||||||||||||
Environmental Matters - Litigation | Vermont | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of lawsuits filed | 2 | |||||||||||||||||
Number of additional defendants | defendant | 10 | |||||||||||||||||
Environmental Matters - Aqueous Film Forming Foam Litigation | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of lawsuits filed | 943 | |||||||||||||||||
Number of lawsuits served | 2 | |||||||||||||||||
Number of putative class action and other lawsuits | 26 | |||||||||||||||||
Number of cases filed by current or former firefighters | 414 | |||||||||||||||||
Environmental Matters - Aqueous Film Forming Foam Litigation | U.S. Judicial Panel on Multidistrict Litigation (MDL) | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of lawsuits filed | 933 | |||||||||||||||||
Number of putative class action and other lawsuits | 947 | |||||||||||||||||
Environmental Matters - Aqueous Film Forming Foam Litigation | Various state courts | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of lawsuits filed | 8 | |||||||||||||||||
Number of lawsuits pending | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | ||||||||
Number of cases stayed | 5 | |||||||||||||||||
Environmental Matters - Aqueous Film Forming Foam Litigation | State court in Wisconsin | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of subsidiaries of plaintiff | subsidiary | 2 | |||||||||||||||||
Environmental Matters - Aqueous Film Forming Foam Litigation | Federal court | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of lawsuits pending | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | ||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | U.S. District Court of New York State | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of lawsuits filed | 41 | |||||||||||||||||
Number of additional new claims filed | 4 | |||||||||||||||||
Number of putative class action and other lawsuits | 1 | |||||||||||||||||
Number of cases the Company has filed answers in which it has been served | 8 | |||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | U.S. District Court of Eastern District of New York | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of lawsuits pending | 11 | 11 | 11 | 11 | 11 | 11 | 11 | 11 | 11 | 11 | ||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | State court of California | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of local water providers | facility | 10 | |||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | Decatur, Alabama | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of perfluorinated materials (FBSA and FBSEE) the company cannot release into "the waters of the United States." | item | 2 | |||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | Georgia | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of putative class action and other lawsuits | 1 | |||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | Alabama and Georgia | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of putative class action and other lawsuits | 4 | |||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | Cities located downstream along the Coosa River | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of putative class action and other lawsuits | 3 | |||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | New Jersey | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of lawsuits filed | 2 | |||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | Near DuPont and Solvay Facilities | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of lawsuits filed | 3 | |||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | Michigan | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of plaintiffs | 274 | 1 | ||||||||||||||||
Settlement amount paid | $ | $ 55,000,000 | $ 70,000,000 | ||||||||||||||||
Number of claims with summary judgment | defendant | 1 | |||||||||||||||||
Number of federal bellwether cases with trial-ready dates set | 3 | |||||||||||||||||
Number of federal bellwether cases the court issued the first round of dispositive motion rulings | 2 | |||||||||||||||||
Total number of federal bellwether cases | 5 | |||||||||||||||||
Number of putative class action and other lawsuits | 1 | |||||||||||||||||
Number of companies involved in agreement | company | 2 | |||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | Parchment, Michigan | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Funds to provide expanded municipal water service | $ | $ 5,000,000 | |||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | Delaware. | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of putative class action and other lawsuits | 1 | |||||||||||||||||
Environmental Matters - Other Environmental Litigation | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Accrued loss contingency reserve | $ | $ 416,000,000 | $ 416,000,000 | 416,000,000 | $ 416,000,000 | $ 416,000,000 | $ 416,000,000 | $ 416,000,000 | $ 416,000,000 | $ 416,000,000 | $ 416,000,000 | ||||||||
Increase (decrease) accrued loss contingency reserve | $ | 96,000,000 | |||||||||||||||||
Litigation payments | $ | $ 125,000,000 | |||||||||||||||||
Charge for environmental resolutions | $ | $ 214,000,000 | |||||||||||||||||
Environmental Matters - Other Environmental Litigation | Alabama | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Increase (decrease) accrued loss contingency reserve | $ | $ 235,000,000 | |||||||||||||||||
Environmental Matters - Other Environmental Litigation | New Jersey | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Approximate number of miles of a river seeking to be cleaned | item | 8 | |||||||||||||||||
The value the award the plaintiff seeks | $ | $ 165,000,000 | |||||||||||||||||
Number of chemicals of concern in the sediment | item | 8 | |||||||||||||||||
Number of commercial drum conditioning facilities | item | 2 | |||||||||||||||||
Number of landfills tested by the entity for environmental matters and litigation related to historical PFAS manufacturing operations | item | 4 | |||||||||||||||||
Environmental Matters - Other Environmental Litigation | New Jersey | Minimum | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of unnamed defendant | defendant | 120 |
Commitments and Contingencies_5
Commitments and Contingencies - Product Liability (Details) | 12 Months Ended |
Dec. 31, 2020USD ($)lawsuitperson | |
Product Liability - Bair Hugger | |
Product Liability Litigation | |
Number of lawsuits filed | 23 |
Number of plaintiffs | person | 26 |
Accrued loss contingency reserve | $ | $ 0 |
Product Liability - Bair Hugger | United States | |
Product Liability Litigation | |
Number of lawsuits filed | 23 |
Product Liability - Bair Hugger | Canada. | |
Product Liability Litigation | |
Number of putative class action and other lawsuits | 1 |
Product Liability - Bair Hugger | Various federal courts | |
Product Liability Litigation | |
Number of plaintiffs | person | 5,000 |
Product Liability - Bair Hugger | Multi-district litigation (MDL) | |
Product Liability Litigation | |
Number of lawsuits filed | 20 |
Number of cases stayed | 20 |
Product Liability - Bair Hugger | State court | |
Product Liability Litigation | |
Number of lawsuits filed | 3 |
Product Liability - Bair Hugger | State court of Oklahoma | |
Product Liability Litigation | |
Number of total claims dismissed | 1 |
Product Liability - Bair Hugger | U.S. District Court for the District of Minnesota | |
Product Liability Litigation | |
Number of lawsuits filed | 61 |
Product Liability - Bair Hugger and medical malpractice claims | Hidalgo County Texas | |
Product Liability Litigation | |
Number of lawsuits pending | 1 |
Product Liability - Bair Hugger and medical malpractice claims | Jackson County Missouri | |
Product Liability Litigation | |
Number of lawsuits pending | 2 |
Product Liability - Dual-Ended Combat Arms Earplugs | |
Product Liability Litigation | |
Number of lawsuits filed | 3,130 |
Number of putative class action and other lawsuits | 14 |
Number of plaintiffs | person | 12,400 |
Accrued loss contingency reserve | $ | $ 0 |
Product Liability - Dual-Ended Combat Arms Earplugs | Multi-district litigation (MDL) | |
Product Liability Litigation | |
Number of plaintiffs | person | 3 |
Number of additional plaintiffs | person | 2 |
Product Liability - Dual-Ended Combat Arms Earplugs | U.S. Court of Appeals for the Eighth Circuit | |
Product Liability Litigation | |
Number of lawsuits filed | 24 |
Commitments and Contingencies_6
Commitments and Contingencies - Securities Litigation (Details) | 12 Months Ended |
Dec. 31, 2020lawsuit | |
State court in Minnesota | Securities Litigation | |
Loss contingencies | |
Number of derivative lawsuits filed | 2 |
Commitments and Contingencies_7
Commitments and Contingencies - Federal False Claims Act / Qui Tam Litigation (Details) - Federal False Claims Act / Qui Tam Litigation | 12 Months Ended |
Dec. 31, 2020lawsuitperson | |
Loss contingencies | |
Number of actions declined to intervene | 2 |
Number of lawsuits pending | 2 |
Number of former employees | person | 2 |
Godecke case | |
Loss contingencies | |
Number of lawsuits pending | 1 |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease expense | ||
Operating lease cost | $ 348 | $ 308 |
Amortization of assets | 21 | 20 |
Interest on lease liabilities | 1 | 2 |
Variable Lease, Cost | 101 | 93 |
Total net lease cost | $ 471 | $ 423 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating leases: | ||
Operating lease right of use assets | $ 864 | $ 858 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating lease right of use assets | |
Current operating lease liabilities | $ 256 | 247 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current operating lease liabilities | |
Noncurrent operating lease liabilities | $ 609 | 607 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Noncurrent operating lease liabilities | |
Present value of future minimum lease payments | $ 865 | 854 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent us-gaap:OperatingLeaseLiabilityNoncurrent | |
Finance leases: | ||
Property and equipment, at cost | $ 26,650 | 26,124 |
Accumulated amortization | (17,229) | (16,791) |
Property, Plant and Equipment - net | 9,421 | 9,333 |
Current obligations of finance leases | $ 22 | 21 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current obligations of finance leases | |
Finance lease obligations | $ 93 | 111 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Finance lease obligations | |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent us-gaap:OtherLiabilitiesNoncurrent | |
Present value of future minimum lease payments | $ 115 | $ 132 |
Weighted average remaining lease term (in years): | ||
Operating leases weighted average remaining lease term (in years) | 5 years 7 months 6 days | 5 years 8 months 12 days |
Finance leases weighted average remaining lease term (in years) | 7 years 7 months 6 days | 9 years |
Weighted average discount rate: | ||
Operating leases weighted average discount rate (as a percent) | 2.40% | 3.20% |
Finance leases weighted average discount rate (as a percent) | 3.50% | 3.80% |
Property and equipment finance leases | ||
Finance leases: | ||
Property and equipment, at cost | $ 225 | $ 239 |
Accumulated amortization | (106) | (102) |
Property, Plant and Equipment - net | $ 119 | $ 137 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow and other information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 326 | $ 309 |
Operating cash flows from finance leases | 1 | 2 |
Financing cash flows from finance leases | 58 | 18 |
Right of use assets obtained in exchange for lease liabilities: | ||
Operating leases | 250 | 326 |
Finance leases | $ 18 | 61 |
Gain on sale leaseback transactions, net | $ 82 |
Leases - Sale and Leased-backed
Leases - Sale and Leased-backed asset and obligation (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Property, plant and equipment - at cost | ||||
Finance lease asset | $ 9,421 | $ 9,333 | ||
Finance lease liability | $ 115 | $ 132 | ||
Constructed machinery and equipment | Municipal securities | ||||
Property, plant and equipment - at cost | ||||
Finance lease asset | $ 9 | |||
Finance lease liability | $ 10 | $ 9 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finance Leases | ||
2021 | $ 20 | |
2022 | 18 | |
2023 | 18 | |
2024 | 16 | |
2025 | 10 | |
After 2025 | 41 | |
Total | 123 | |
Less: Amounts representing interest | 8 | |
Present value of future minimum lease payments | 115 | $ 132 |
Less: Current obligations | 22 | 21 |
Long-term obligations | 93 | 111 |
Operating Leases | ||
2021 | 273 | |
2022 | 201 | |
2023 | 141 | |
2024 | 93 | |
2025 | 60 | |
After 2025 | 162 | |
Total | 930 | |
Less: Amounts representing interest | 65 | |
Present value of future minimum lease payments | 865 | 854 |
Current operating lease liabilities | 256 | 247 |
Noncurrent operating lease liabilities | $ 609 | $ 607 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent us-gaap:OperatingLeaseLiabilityNoncurrent |
Leases - Operating leases not y
Leases - Operating leases not yet commenced (Details) $ in Millions | Dec. 31, 2020USD ($) |
Leases | |
Additional operating lease commitments that have not yet commenced | $ 18 |
Leases - Disclosures related to
Leases - Disclosures related to periods prior to adoption of new lease standard (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Leases | |
Rental expense under operating leases | $ 393 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 12 Months Ended |
Dec. 31, 2020USD ($)individualshares | |
Share-based Compensation Arrangement by Share-based Payment Award Activity | |
Number of participants with outstanding options, restricted stock, or restricted stock units | individual | 8,000 |
Retirement age eligibility for employees | $ | 55 |
Retirement eligibility for employees, minimum years of service required | 10 years |
Percent of stock-based compensation related to retiree-eligible population (as a percent) | 35.00% |
Long Term Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award Activity | |
Number of shares authorized | 123,965,000 |
Number of shares available for grant | 16,000,000 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amounts recognized in the financial statements | |||
Stock-based compensation programs expense | $ 262 | $ 278 | $ 302 |
Income tax benefits | (82) | (141) | (154) |
Stock-based compensation expenses (benefits), net of tax | 180 | 137 | 148 |
Cost of sales | |||
Amounts recognized in the financial statements | |||
Stock-based compensation programs expense | 50 | 47 | 48 |
Selling, general and administrative expenses | |||
Amounts recognized in the financial statements | |||
Stock-based compensation programs expense | 169 | 185 | 207 |
Research, development and related expenses | |||
Amounts recognized in the financial statements | |||
Stock-based compensation programs expense | $ 43 | $ 46 | $ 47 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share- based compensation assumptions | |||
Weighted average exercise price | $ 157.24 | $ 201.12 | $ 233.63 |
Risk-free interest rate (as a percent) | 1.50% | 2.60% | 2.70% |
Dividend yield (as a percent) | 2.70% | 2.50% | 2.40% |
Expected volatility (as a percent) | 19.70% | 20.40% | 21.00% |
Expected life | 78 months | 79 months | 78 months |
Black-Scholes fair value | $ 21.58 | $ 34.19 | $ 41.59 |
Stock Options | |||
Stock Option Program | |||
Balance at the beginning of the period | 33,675 | 34,569 | 34,965 |
Granted - Annual | 4,777 | 3,434 | 3,211 |
Exercised | (2,759) | (4,193) | (3,482) |
Forfeited | (292) | (135) | (125) |
Balance at the end of the period | 35,401 | 33,675 | 34,569 |
Options exercisable | 27,537 | 26,487 | 26,117 |
Options exercisable, exercise price | $ 149.67 | $ 136.75 | $ 121.98 |
Weighted average exercise price - Beginning balance | 151.15 | 138.98 | 125.73 |
Weighted average exercise price - Granted - Annual | 157.25 | 200.80 | 233.19 |
Weighted average exercise price - Exercised | 93.23 | 89.89 | 91.01 |
Weighted average exercise price - Forfeited | 181.33 | 201.27 | 188 |
Weighted average exercise price - Ending balance | $ 156.23 | $ 151.15 | $ 138.98 |
Weighted average remaining contractual life for options outstanding | 63 months | ||
Weighted average remaining contractual life for options exercisable | 51 months | ||
Aggregate intrinsic value for options outstanding | $ 929 | ||
Aggregate intrinsic value for options exercisable | $ 847 | ||
Expiration of annual grants | 10 years | ||
Compensation expense yet to be recognized | $ 56 | ||
Expense recognition period | 20 months | ||
Total intrinsic value of stock options exercised | $ 206 | $ 433 | $ 469 |
Cash received from options exercised | 256 | 375 | 316 |
Tax benefit realized from exercise of stock options | $ 44 | $ 91 | $ 99 |
Stock Options | Maximum | |||
Stock Option Program | |||
Vesting period | 3 years | ||
Stock Options | Minimum | |||
Stock Option Program | |||
Vesting period | 1 year |
Stock-Based Compensation - RSU,
Stock-Based Compensation - RSU, RS, Performance Shares (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock and Restricted Stock Units | |||
Unit and Shares Activity: | |||
Number of Shares - Nonvested - Beginning balance | 1,573 | 1,789 | 1,994 |
Number of Shares - Granted - Annual | 733 | 564 | 467 |
Number of Shares - Granted - Other | 45 | 15 | 8 |
Number of Shares - Vested | (570) | (732) | (640) |
Number of Shares - Forfeited | (59) | (63) | (40) |
Number of Shares - Nonvested - Ending balance | 1,722 | 1,573 | 1,789 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures | |||
Weighted Average Grant Date Fair Value - Nonvested - Beginning balance | $ 201.11 | $ 180.02 | $ 162.60 |
Weighted Average Grant Date Fair Value - Granted - Annual | 157.29 | 200.41 | 233.61 |
Weighted Average Grant Date Fair Value - Granted - Other | 159.49 | 180.08 | 207.76 |
Weighted Average Grant Date Fair Value - Vested | 176.20 | 149.33 | 164.83 |
Weighted Average Grant Date Fair Value - Forfeited | 196.31 | 192.52 | 186.48 |
Weighted Average Grant Date Fair Value - Nonvested - Ending balance | $ 189.78 | $ 201.11 | $ 180.02 |
Compensation expense yet to be recognized | $ 79,000,000 | ||
Expense recognition period | 23 months | ||
Fair value that vested | $ 91,000,000 | $ 144,000,000 | $ 155,000,000 |
Tax benefit realized from vesting | $ 26,000,000 | $ 28,000,000 | $ 29,000,000 |
Vesting or performance period | 3 years | ||
Value of dividend equivalents for restricted stock units that are forfeited | $ 0 | ||
Impact on basic earnings per share due to restricted stock units dividends | $ 0 | ||
Performance Shares | |||
Unit and Shares Activity: | |||
Number of Shares - Nonvested - Beginning balance | 444 | 562 | 686 |
Number of Shares - Granted - Annual | 203 | 166 | 166 |
Number of Shares - Vested | (206) | (210) | (206) |
Number of Shares - Performance Change | 25 | (48) | (56) |
Number of Shares - Forfeited | (43) | (26) | (28) |
Number of Shares - Nonvested - Ending balance | 423 | 444 | 562 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures | |||
Weighted Average Grant Date Fair Value - Nonvested - Beginning balance | $ 205.58 | $ 188.96 | $ 171.90 |
Weighted Average Grant Date Fair Value - Granted - Annual | 153.16 | 207.49 | 229.13 |
Weighted Average Grant Date Fair Value - Vested | 190.84 | 162.16 | 159.82 |
Weighted Average Grant Date Fair Value - Performance Change | 166.49 | 204.73 | 198.39 |
Weighted Average Grant Date Fair Value - Forfeited | 172.92 | 209.96 | 204.09 |
Weighted Average Grant Date Fair Value - Nonvested - Ending balance | $ 188.61 | $ 205.58 | $ 188.96 |
Compensation expense yet to be recognized | $ 17,000,000 | ||
Expense recognition period | 20 months | ||
Fair value that vested | $ 35,000,000 | $ 45,000,000 | $ 48,000,000 |
Tax benefit realized from vesting | $ 7,000,000 | $ 9,000,000 | $ 11,000,000 |
Vesting or performance period | 3 years | ||
Performance shares awarded at estimated number of shares at the end of the performance period | 100.00% | ||
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures | |||
Expense recognition period | 3 years | ||
Number of shares to be delivered based on percent of each performance share granted upon satisfaction of performance conditions | 200.00% | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures | |||
Expense recognition period | 1 year | ||
Number of shares to be delivered based on percent of each performance share granted upon satisfaction of performance conditions | 0.00% |
Stock-Based Compensation - Gene
Stock-Based Compensation - General Employees Stock Purchase Plan (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award Activity | |||
Weighted-average fair value | $ 21.58 | $ 34.19 | $ 41.59 |
Allocated Share Based Compensation Expense | $ 262 | $ 278 | $ 302 |
General Employees' Stock Purchase Plan (GESPP) | |||
Share-based Compensation Arrangement by Share-based Payment Award Activity | |||
Number of shares authorized | 60 | ||
Option price, percentage of market value at date of grant | 85.00% | ||
Weighted-average fair value | $ 23.47 | $ 27.14 | $ 31.91 |
Option price, discount from market value at date of grant | 15.00% | ||
Allocated Share Based Compensation Expense | $ 31 | $ 30 | $ 30 |
Business Segments and Geograp_3
Business Segments and Geographic Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($) | Dec. 31, 2020segment | |
Business Segment Information | ||
Number of business segments | segment | 4 | |
Business Segments in Aggregate | ||
Business Segment Information | ||
Increase (decrease) in net sales due to continued alignment of customer account activity | $ (42) | |
Increase (decrease) in operating income due to continued alignment of customer account activity | (10) | |
Safety and Industrial | ||
Business Segment Information | ||
Increase (decrease) in net sales due to additional actions impacting business segment reporting | (35) | |
Increase (decrease) in operating income due to additional actions impacting business segment reporting | (11) | |
Consumer | ||
Business Segment Information | ||
Increase (decrease) in net sales due to additional actions impacting business segment reporting | 35 | |
Increase (decrease) in operating income due to additional actions impacting business segment reporting | 11 | |
Elimination of Dual Credit | ||
Business Segment Information | ||
Increase (decrease) in net sales due to continued alignment of customer account activity | (42) | |
Increase (decrease) in operating income due to continued alignment of customer account activity | $ (10) |
Business Segments and Geograp_4
Business Segments and Geographic Information - Business Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Segment Information | |||
Net sales | $ 32,184 | $ 32,136 | $ 32,765 |
Operating Income | 7,161 | 6,174 | 7,207 |
Assets | 47,344 | 44,659 | |
Depreciation and amortization | 1,911 | 1,593 | 1,488 |
Capital expenditures | 1,501 | 1,699 | 1,577 |
Property, Plant and Equipment - net | 9,421 | 9,333 | |
Gain/(loss) on sale of businesses | 389 | 114 | 547 |
Total operating expenses | 25,023 | 25,962 | 25,558 |
Other expense (income), net | 450 | 462 | 207 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 6,711 | 5,712 | 7,000 |
Safety and Industrial | |||
Business Segment Information | |||
Net sales | 11,767 | 11,514 | 12,414 |
Operating Income | 3,054 | 2,510 | 2,860 |
Assets | 11,711 | 11,682 | |
Depreciation and amortization | 562 | 509 | 493 |
Capital expenditures | 451 | 391 | 375 |
Transportation and Electronics | |||
Business Segment Information | |||
Net sales | 8,827 | 9,591 | 10,104 |
Operating Income | 1,927 | 2,221 | 2,643 |
Assets | 6,997 | 6,871 | |
Depreciation and amortization | 429 | 401 | 390 |
Capital expenditures | 454 | 390 | 339 |
Health Care | |||
Business Segment Information | |||
Net sales | 8,345 | 7,431 | 6,821 |
Operating Income | 1,828 | 1,858 | 1,918 |
Assets | 14,531 | 14,790 | |
Depreciation and amortization | 626 | 392 | 262 |
Capital expenditures | 251 | 264 | 245 |
Consumer | |||
Business Segment Information | |||
Net sales | 5,336 | 5,151 | 5,127 |
Operating Income | 1,249 | 1,124 | 1,084 |
Assets | 2,567 | 2,428 | |
Depreciation and amortization | 140 | 134 | 126 |
Capital expenditures | 120 | 130 | 115 |
Business Segments. | |||
Business Segment Information | |||
Operating Income | 7,524 | 7,304 | 8,069 |
Corporate and Unallocated | |||
Business Segment Information | |||
Net sales | (1) | 110 | 50 |
Assets | 11,538 | 8,888 | |
Depreciation and amortization | 154 | 157 | 217 |
Capital expenditures | 225 | 524 | 503 |
Significant litigation-related (charges)/benefits | (17) | (762) | (897) |
Gain/(loss) on sale of businesses | 389 | 114 | 547 |
Divestiture-related restructuring actions | (55) | (127) | |
Other corporate expense - net | (680) | (482) | (385) |
Total operating expenses | 363 | 1,130 | 862 |
Elimination of Dual Credit | |||
Business Segment Information | |||
Net sales | (2,090) | (1,661) | (1,751) |
Operating Income | (534) | (409) | $ (436) |
Americas | |||
Business Segment Information | |||
Property, Plant and Equipment - net | 5,752 | 5,873 | |
Asia Pacific | |||
Business Segment Information | |||
Property, Plant and Equipment - net | 1,662 | 1,637 | |
Europe, Middle East and Africa | |||
Business Segment Information | |||
Property, Plant and Equipment - net | 2,007 | 1,823 | |
United States | |||
Business Segment Information | |||
Property, Plant and Equipment - net | 5,358 | 5,442 | |
China/Hong Kong | |||
Business Segment Information | |||
Property, Plant and Equipment - net | $ 583 | $ 553 |
Quarterly Data (Unaudited) (Det
Quarterly Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Data (Unaudited) | |||||||||||
Net Sales | $ 8,583 | $ 8,350 | $ 7,176 | $ 8,075 | $ 8,111 | $ 7,991 | $ 8,171 | $ 7,863 | $ 32,184 | $ 32,136 | $ 32,765 |
Cost of sales | 4,388 | 4,303 | 3,805 | 4,109 | 4,325 | 4,188 | 4,313 | 4,310 | 16,605 | 17,136 | 16,682 |
Net income including noncontrolling interest | 1,390 | 1,417 | 1,287 | 1,294 | 970 | 1,588 | 1,131 | 893 | 5,388 | 4,582 | 5,363 |
Net income attributable to 3M | $ 1,389 | $ 1,413 | $ 1,290 | $ 1,292 | $ 969 | $ 1,583 | $ 1,127 | $ 891 | $ 5,384 | $ 4,570 | $ 5,349 |
Earnings per share attributable to 3M common shareholders - basic (in dollars per share) | $ 2.40 | $ 2.45 | $ 2.24 | $ 2.24 | $ 1.68 | $ 2.75 | $ 1.95 | $ 1.54 | $ 9.32 | $ 7.92 | $ 9.09 |
Earnings per share attributable to 3M common shareholders - diluted (in dollars per share) | $ 2.38 | $ 2.43 | $ 2.22 | $ 2.22 | $ 1.66 | $ 2.72 | $ 1.92 | $ 1.51 | $ 9.25 | $ 7.81 | $ 8.89 |
Quarterly Data (Unaudited) - Ad
Quarterly Data (Unaudited) - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020USD ($)$ / shares | Mar. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Jun. 30, 2019USD ($)$ / shares | Mar. 31, 2019USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | |
Quarterly Data (Unaudited) | ||||||
Charges related to litigation for PFAS (certain perfluorinated compounds) matters | $ 17 | |||||
Charges related to litigation for PFAS (certain perfluorinated compounds) matters, net | 13 | |||||
Tax expense reduction from resolution of Natural Resources Damages (NRD) lawsuit with State of Minnesota | 52 | |||||
After tax benefit due to resolution of litigation | $ 39 | |||||
Impact on diluted earnings per share due to resolution of litigation | $ / shares | 0.07 | |||||
Aggregate gain on sale of businesses | $ 303 | $ 129 | ||||
Impact on diluted earnings related to aggregate gain on sale of businesses | $ / shares | 0.52 | 0.22 | ||||
Divestiture-related restructuring charges | $ 46 | |||||
Impact on diluted earnings per share related to divestiture-related restructuring charges | $ / shares | $ 0.08 | |||||
Net income adjustment due to significant litigation-related charges related to historical PFAS (certain perfluorinated compounds) manufacturing operations and coal mine dust respirator mask lawsuits | $ 590 | |||||
Impact on diluted earnings per share due to significant litigation-related charges related to historical PFAS (certain perfluorinated compounds) manufacturing operations and coal mine dust respirator mask lawsuits | $ / shares | $ 1.01 | |||||
Initial net income adjustment due to significant litigation-related charges related to historical PFAS (certain perfluorinated compounds) manufacturing operations and coal mine dust respirator mask lawsuits | $ 424 | |||||
Initial impact on diluted earnings per share due to significant litigation-related charges related to historical PFAS (certain perfluorinated compounds) manufacturing operations and coal mine dust respirator mask lawsuits | $ / shares | $ 0.72 | |||||
Subsequent net income adjustment due to significant litigation-related charges related to historical PFAS (certain perfluorinated compounds) manufacturing operations and coal mine dust respirator mask lawsuits | $ 166 | |||||
Subsequent impact on diluted earnings per share due to significant litigation-related charges related to historical PFAS (certain perfluorinated compounds) manufacturing operations and coal mine dust respirator mask lawsuits | $ / shares | $ 0.29 | |||||
Net income adjustment related to deconsolidation of Venezuelan subsidiary | $ 162 | |||||
Impact on diluted earnings related to deconsolidation of Venezuelan subsidiary | $ / shares | $ 0.28 |