Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2022shares | |
Document Information | |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2022 |
Entity File Number | 1-3285 |
Entity Registrant Name | 3M COMPANY |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 41-0417775 |
Entity Address, Address Line One | 3M Center |
Entity Address, City or Town | St. Paul |
Entity Address, State or Province | MN |
Entity Address, Postal Zip Code | 55144-1000 |
City Area Code | 651 |
Local Phone Number | 733-1110 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 569,058,849 |
Entity Central Index Key | 0000066740 |
Document Quarterly Report | true |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q1 |
Common Stock, Par Value $.01 Per Share | New York Stock Exchange | |
Document Information | |
Title of 12(b) Security | Common Stock, Par Value $.01 Per Share |
Trading Symbol | MMM |
Security Exchange Name | NYSE |
Common Stock, Par Value $.01 Per Share | Chicago Stock Exchange, Inc. | |
Document Information | |
Title of 12(b) Security | Common Stock, Par Value $.01 Per Share |
Trading Symbol | MMM |
Security Exchange Name | CHX |
0.950% Notes due 2023 | New York Stock Exchange | |
Document Information | |
Title of 12(b) Security | 0.950% Notes due 2023 |
Trading Symbol | MMM23 |
Security Exchange Name | NYSE |
1.500% Notes due 2026 | New York Stock Exchange | |
Document Information | |
Title of 12(b) Security | 1.500% Notes due 2026 |
Trading Symbol | MMM26 |
Security Exchange Name | NYSE |
1.750% Notes due 2030 | New York Stock Exchange | |
Document Information | |
Title of 12(b) Security | 1.750% Notes due 2030 |
Trading Symbol | MMM30 |
Security Exchange Name | NYSE |
1.500% Notes due 2031 | New York Stock Exchange | |
Document Information | |
Title of 12(b) Security | 1.500% Notes due 2031 |
Trading Symbol | MMM31 |
Security Exchange Name | NYSE |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 8,829 | $ 8,851 |
Operating expenses | ||
Cost of sales | 4,826 | 4,525 |
Selling, general and administrative expenses | 1,882 | 1,808 |
Research, development and related expenses | 480 | 524 |
Total operating expenses | 7,188 | 6,857 |
Operating income | 1,641 | 1,994 |
Other expense (income), net | 38 | 49 |
Income before income taxes | 1,603 | 1,945 |
Provision for income taxes | 302 | 319 |
Income of consolidated group | 1,301 | 1,626 |
Income (loss) from unconsolidated subsidiaries, net of taxes | 2 | 1 |
Net income including noncontrolling interest | 1,303 | 1,627 |
Less: Net income (loss) attributable to noncontrolling interest | 4 | 3 |
Net income attributable to 3M | $ 1,299 | $ 1,624 |
Weighted average 3M common shares outstanding - basic (in shares) | 572.3 | 580.5 |
Earnings per share attributable to 3M common shareholders - basic (in dollars per share) | $ 2.27 | $ 2.80 |
Weighted average 3M common shares outstanding - diluted (in shares) | 575 | 586.3 |
Earnings per share attributable to 3M common shareholders - diluted (in dollars per share) | $ 2.26 | $ 2.77 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income including noncontrolling interest | $ 1,303 | $ 1,627 |
Other comprehensive income (loss), net of tax: | ||
Cumulative translation adjustment | (171) | (222) |
Defined benefit pension and postretirement plans adjustment | 87 | 119 |
Cash flow hedging instruments | (1) | 58 |
Total other comprehensive income (loss), net of tax | (85) | (45) |
Comprehensive income (loss) including noncontrolling interest | 1,218 | 1,582 |
Comprehensive (income) loss attributable to noncontrolling interest | (3) | (4) |
Comprehensive income (loss) attributable to 3M | $ 1,215 | $ 1,578 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 3,247 | $ 4,564 |
Marketable securities — current | 112 | 201 |
Accounts receivable — net of allowances of $209 and $189 | 4,815 | 4,660 |
Inventories | ||
Finished goods | 2,337 | 2,196 |
Work in process | 1,669 | 1,577 |
Raw materials and supplies | 1,284 | 1,212 |
Total inventories | 5,290 | 4,985 |
Prepaids | 561 | 654 |
Other current assets | 427 | 339 |
Total current assets | 14,452 | 15,403 |
Property, plant and equipment | 27,157 | 27,213 |
Less: Accumulated depreciation | (17,768) | (17,784) |
Property, plant and equipment — net | 9,389 | 9,429 |
Operating lease right of use assets | 865 | 858 |
Goodwill | 13,368 | 13,486 |
Intangible assets — net | 5,141 | 5,288 |
Other assets | 2,640 | 2,608 |
Total assets | 45,855 | 47,072 |
Current liabilities | ||
Short-term borrowings and current portion of long-term debt | 1,877 | 1,307 |
Accounts payable | 3,164 | 2,994 |
Accrued payroll | 638 | 1,020 |
Accrued income taxes | 274 | 260 |
Operating lease liabilities — current | 261 | 263 |
Other current liabilities | 2,938 | 3,191 |
Total current liabilities | 9,152 | 9,035 |
Long-term debt | 14,801 | 16,056 |
Pension and postretirement benefits | 2,792 | 2,870 |
Operating lease liabilities | 608 | 591 |
Other liabilities | 3,498 | 3,403 |
Total liabilities | 30,851 | 31,955 |
Commitments and contingencies | ||
3M Company shareholders’ equity: | ||
Common stock par value, $.01 par value: 944,033,056 shares issued; Shares outstanding - March 31, 2022: - ; Shares outstanding - December 31, 2021: 571,845,478 | 9 | 9 |
Additional paid-in capital | 6,559 | 6,429 |
Retained earnings | 46,056 | 45,821 |
Treasury stock, at cost: Shares at September 30, 2021: 367,780,253; Shares at December 31, 2020: 366,283,418 | (30,860) | (30,463) |
Accumulated other comprehensive income (loss) | (6,834) | (6,750) |
Total 3M Company shareholders’ equity | 14,930 | 15,046 |
Noncontrolling interest | 74 | 71 |
Total equity | 15,004 | 15,117 |
Total liabilities and equity | $ 45,855 | $ 47,072 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Allowances for doubtful accounts receivable | $ 209 | $ 189 |
3M Company shareholders’ equity: | ||
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) | 569,058,849 | 571,845,478 |
Treasury stock (in shares) | 374,974,207 | 372,187,578 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net income including noncontrolling interest | $ 1,303 | $ 1,627 |
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities | ||
Depreciation and amortization | 459 | 460 |
Company pension and postretirement contributions | (42) | (47) |
Company pension and postretirement expense | 43 | 47 |
Stock-based compensation expense | 135 | 131 |
Gain on sale of businesses | 0 | 0 |
Deferred income taxes | (49) | 16 |
Changes in assets and liabilities | ||
Accounts receivable | (189) | (205) |
Inventories | (319) | (304) |
Accounts payable | 261 | 155 |
Accrued income taxes (current and long-term) | 179 | 42 |
Other — net | (770) | (234) |
Net cash provided by (used in) operating activities | 1,011 | 1,688 |
Cash Flows from Investing Activities | ||
Purchases of property, plant and equipment (PP&E) | (424) | (310) |
Proceeds from sale of PP&E and other assets | 56 | 32 |
Acquisitions, net of cash acquired | 0 | 0 |
Purchases of marketable securities and investments | (125) | (428) |
Proceeds from maturities and sale of marketable securities and investments | 217 | 318 |
Proceeds from sale of businesses, net of cash sold | 13 | 0 |
Other — net | 0 | 19 |
Net cash provided by (used in) investing activities | (263) | (369) |
Cash Flows from Financing Activities | ||
Change in short-term debt — net | (5) | 6 |
Repayment of debt (maturities greater than 90 days) | (579) | (450) |
Proceeds from debt (maturities greater than 90 days) | 0 | 0 |
Purchases of treasury stock | (773) | (231) |
Proceeds from issuance of treasury stock pursuant to stock option and benefit plans | 164 | 293 |
Dividends paid to shareholders | (852) | (858) |
Other — net | (9) | (11) |
Net cash provided by (used in) financing activities | (2,054) | (1,251) |
Effect of exchange rate changes on cash and cash equivalents | (11) | (66) |
Net increase (decrease) in cash and cash equivalents | (1,317) | 2 |
Cash and cash equivalents at beginning of year | 4,564 | 4,634 |
Cash and cash equivalents at end of period | $ 3,247 | $ 4,636 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The interim consolidated financial statements are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair statement of the Company’s consolidated financial position, results of operations and cash flows for the periods presented. These adjustments consist of normal, recurring items. The results of operations for any interim period are not necessarily indicative of results for the full year. The interim consolidated financial statements and notes are presented as permitted by the requirements for Quarterly Reports on Form 10-Q. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes included in its most recent Annual Report on Form 10-K. Effective in the first quarter of 2022, 3M made changes in the measure of segment operating performance used by 3M’s chief operating decision maker—impacting 3M’s disclosed measure of segment profit/loss (business segment operating income). See additional information in Note 16. 3M's disclosed disaggregated revenue was also updated as a result of the changes in segment reporting. See additional information in Note 2. Information provided herein reflects the impact of these changes for all periods presented. Consolidation and foreign currency translation Local currencies generally are considered the functional currencies outside the United States with the exception of 3M’s subsidiaries in Argentina, the economy of which is considered highly inflationary and, accordingly, the financial statements of these subsidiaries are remeasured as if their functional currency is that of their parent. Assets and liabilities for operations in local-currency environments are translated at month-end exchange rates of the period reported. Income and expense items are translated at average monthly currency exchange rates in effect during the period. Cumulative translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in shareholders’ equity. 3M has subsidiaries in Turkey. Based on underlying indices, Turkey’s cumulative three-year inflation rate exceeded 100 percent in the first quarter of 2022, thus being considered highly inflationary. As a result, the financial statements of the Turkish subsidiaries will be remeasured as if their functional currency were that of their parent, starting in the second quarter of 2022. The operating income and balances of underlying net monetary assets denominated in Turkish lira are not material to 3M. Earnings Per Share The difference in the weighted average 3M shares outstanding for calculating basic and diluted earnings per share attributable to 3M common shareholders is a result of the dilution associated with the Company’s stock-based compensation plans. Certain options outstanding under these stock-based compensation plans were not included in the computation of diluted earnings per share attributable to 3M common shareholders because they would have had an anti-dilutive effect of 23.1 million average options for the three months ended March 31, 2022 and 8.7 million average options for the three months ended March 31, 2021. The computations for basic and diluted earnings per share follow: Earnings Per Share Computations Three months ended (Amounts in millions, except per share amounts) 2022 2021 Numerator: Net income attributable to 3M $ 1,299 $ 1,624 Denominator: Denominator for weighted average 3M common shares outstanding – basic 572.3 580.5 Dilution associated with the Company’s stock-based compensation plans 2.7 5.8 Denominator for weighted average 3M common shares outstanding – diluted 575.0 586.3 Earnings per share attributable to 3M common shareholders – basic $ 2.27 $ 2.80 Earnings per share attributable to 3M common shareholders – diluted $ 2.26 $ 2.77 New Accounting Pronouncements Refer to Note 1 to the Consolidated Financial Statements in 3M’s 2021 Annual Report on Form 10-K for a discussion of applicable standards issued and not yet adopted by 3M. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Contract Balances: Deferred revenue primarily relates to revenue that is recognized over time for one-year software license contracts. Deferred revenue (current portion) as of March 31, 2022 and December 31, 2021 was $549 million and $529 million, respectively. Approximately $200 million of the December 31, 2021 balance was recognized as revenue during the three months ended March 31, 2022, while approximately $180 million of the December 31, 2020 balance was recognized as revenue during the three months ended March 31, 2021. 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 $136 million during the three months ended March 31, 2022 and $140 million during the three months ended March 31, 2021. Disaggregated revenue information: The Company views the following disaggregated disclosures as useful to understanding the composition of revenue recognized during the respective reporting periods: Three months ended Net Sales (Millions) 2022 2021 Abrasives $ 329 $ 323 Automotive Aftermarket 295 294 Closure and Masking Systems 258 243 Electrical Markets 309 301 Industrial Adhesives and Tapes 621 598 Personal Safety 1,127 1,229 Roofing Granules 112 108 Other Safety and Industrial — 3 Total Safety and Industrial Business Segment 3,051 3,099 Advanced Materials 305 315 Automotive and Aerospace 460 488 Commercial Solutions 454 427 Electronics 923 951 Transportation Safety 198 215 Total Transportation and Electronics Business Segment 2,340 2,396 Food Safety 92 87 Health Information Systems 300 289 Medical Solutions 1,128 1,093 Oral Care 354 360 Separation and Purification Sciences 250 240 Total Health Care Business Group 2,124 2,069 Consumer Health and Safety 161 144 Home Care 274 272 Home Improvement 609 604 Stationery and Office 269 268 Other Consumer — 1 Total Consumer Business Group 1,313 1,289 Corporate and Unallocated 1 (2) Total Company $ 8,829 $ 8,851 Three months ended Net Sales (Millions) 2022 2021 Americas $ 4,438 $ 4,328 Asia Pacific 2,770 2,769 Europe, Middle East and Africa 1,621 1,755 Other Unallocated — (1) Worldwide $ 8,829 $ 8,851 Americas included United States net sales to customers of $3.6 billion for the three months ended March 31, 2022 and $3.6 billion for the three months ended March 31, 2021. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Refer to Note 3 to the Consolidated Financial Statements in 3M’s 2021 Annual Report on Form 10-K for more information on relevant pre-2022 acquisitions and divestitures. Acquisitions: 3M makes acquisitions of certain businesses from time to time that are aligned with its strategic intent with respect to, among other factors, growth markets and adjacent product lines or technologies. Goodwill resulting from business combinations is largely attributable to the existing workforce of the acquired businesses and synergies expected to arise after 3M’s acquisition of these businesses. 2022 acquisitions: There were no acquisitions that closed during the three months ended March 31, 2022. 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 16 (Business Segments), gains/losses on sale of businesses are reflected in Corporate and Unallocated. 2022 divestitures and previously announced divestitures: In March 2022, 3M completed the sale of its floor products business in Western Europe, formerly part of the Consumer business, for immaterial proceeds that approximated the business's book value. In December 2021, 3M entered into agreements with Neogen Corporation pursuant to which 3M will separate its Food Safety Division business (part of the Health Care business) and combine it with Neogen in a transaction that is intended to be tax-efficient to 3M and its shareholders for U.S. federal income tax purposes. Under the terms of the agreements, which involve a tax-free Reverse Morris Trust, the Food Safety business will be spun-off or split-off to 3M shareholders and simultaneously merged with Neogen. Existing Neogen shareholders will continue to own approximately 49.9% of the combined company and 3M shareholders will receive approximately 50.1% of the combined company. In connection with the transaction, the Food Safety business will incur new debt and fund to 3M consideration valued at approximately $1 billion, subject to closing and other adjustments. The transaction is expected to close by the end of the third quarter of 2022, subject to approval by Neogen shareholders, receipt of required regulatory approvals and the satisfaction of other customary closing conditions. Net sales information relative to the Food Safety Division is included in Note 2. Due to factors such as the potential nature of the transaction and underlying approvals, the Food Safety business is not considered held for sale as of March 31, 2022. Operating income and held for sale amounts: The aggregate operating income of these businesses included in 3M's consolidated results, including the announced divestitures, for the first three months of 2021 and 2022 was approximately $30 million and $30 million respectively. The amounts of major assets and liabilities associated with disposal groups classified as held-for-sale as December 31, 2021 were not material. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets There was no goodwill recorded from acquisitions during the first three months of 2022. The amounts in the “Translation and other” row in the following table primarily relate to changes in foreign currency exchange rates. The goodwill balance by business segment as of December 31, 2021 and March 31, 2022, follow: Goodwill (Millions) Safety and Industrial Transportation and Health Care Consumer Total Company Balance as of December 31, 2021 $ 4,622 $ 1,825 $ 6,786 $ 253 $ 13,486 Translation and other (17) (12) (85) (4) (118) Balance as of March 31, 2022 $ 4,605 $ 1,813 $ 6,701 $ 249 $ 13,368 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. 3M will continue to monitor its reporting units and asset groups in 2022 for any triggering events or other indicators of impairment. 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 March 31, 2022, and December 31, 2021, follow: (Millions) March 31, December 31, Customer related intangible assets $ 4,179 $ 4,216 Patents 510 513 Other technology-based intangible assets 2,105 2,111 Definite-lived tradenames 1,170 1,171 Other amortizable intangible assets 94 105 Total gross carrying amount 8,058 8,116 Accumulated amortization — customer related (1,653) (1,616) Accumulated amortization — patents (500) (500) Accumulated amortization — other technology-based (886) (839) Accumulated amortization — definite-lived tradenames (462) (447) Accumulated amortization — other (67) (79) Total accumulated amortization (3,568) (3,481) Total finite-lived intangible assets — net 4,490 4,635 Non-amortizable intangible assets (primarily tradenames) 651 653 Total intangible assets — net $ 5,141 $ 5,288 Certain tradenames acquired by 3M are not amortized because they have been in existence for over 60 years, have a history of leading-market share positions, have been and are intended to be continuously renewed, and the associated products of which are expected to generate cash flows for 3M for an indefinite period of time. Amortization expense for the three months ended March 31, 2022 and 2021 follows: Three months ended (Millions) 2022 2021 Amortization expense $ 131 $ 133 Expected amortization expense for acquired amortizable intangible assets recorded as of March 31, 2022: (Millions) Remainder of 2022 2023 2024 2025 2026 2027 After 2027 Amortization expense $ 378 $ 483 $ 455 $ 425 $ 418 $ 391 $ 1,940 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 | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Actions | Restructuring Actions 2022 and 2021 Restructuring Actions: Operational/Marketing Capability Restructuring: As described in Note 5 to the Consolidated Financial Statements in 3M’s 2021 Annual Report on Form 10-K, in late 2020, 3M announced it would undertake certain actions beginning in the fourth quarter of 2020 to further enhance its operations and marketing capabilities to take advantage of certain global market trends while de-prioritizing investments in slower-growth end markets. In 2021, management approved and committed to undertake additional actions under this initiative resulting in a 2021 pre-tax charge of $124 million. In the first quarter of 2022, management approved and committed to undertake the remaining actions under this initiative resulting in a pre-tax charge of $18 million. This initiative, begun in 2020 and ending with committed first quarter 2022 actions, impacted approximately 3,100 positions worldwide with a pre-tax charge of approximately $280 million over that period. The related restructuring charges for periods presented were recorded in the income statement as follows: Three months ended (Millions) 2022 2021 Cost of sales $ — $ 1 Selling, general and administrative expenses 12 9 Research, development and related expenses 6 4 Total operating income impact $ 18 $ 14 The business segment operating income impact of these restructuring charges is summarized as follows: Three months ended Employee-Related (Millions) 2022 2021 Safety and Industrial $ 2 $ 2 Transportation and Electronics 4 3 Health Care 2 1 Consumer 2 1 Corporate and Unallocated 8 7 Total Operating Expense $ 18 $ 14 Restructuring actions, including cash and non-cash impacts, follow: (Millions) Employee-Related Accrued restructuring action balance as of December 31, 2021 $ 87 Incremental expense incurred in the first quarter of 2022 18 Cash payments (53) Adjustments (8) Accrued restructuring action balances as of March 31, 2022 $ 44 |
Supplemental Income Statement I
Supplemental Income Statement Information | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Supplemental Income Statement Information | Supplemental Income Statement Information Other expense (income), net consists of the following: Three months ended (Millions) 2022 2021 Interest expense $ 113 $ 132 Interest income (8) (4) Pension and postretirement net periodic benefit cost (benefit) (67) (79) Total $ 38 $ 49 Interest expense includes an early debt extinguishment pre-tax charge of approximately $11 million in the first quarter of 2021. Pension and postretirement net periodic benefit costs described in the table above include all components of defined benefit plan net periodic benefit costs except service cost, which is reported in various operating expense lines. Refer to Note 11 for additional details on the components of pension and postretirement net periodic benefit costs. |
Supplemental Equity and Compreh
Supplemental Equity and Comprehensive Income Information | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Supplemental Equity and Comprehensive Income Information | Supplemental Equity and Comprehensive Income Information Cash dividends declared and paid totaled $1.49 and $1.48 per share for the first quarter of 2022 and 2021, respectively. Consolidated Changes in Equity Three months ended March 31, 2022 3M Company Shareholders (Millions) Total Common Retained Treasury Accumulated Non- Balance at December 31, 2021 $ 15,117 $ 6,438 $ 45,821 $ (30,463) $ (6,750) $ 71 Net income 1,303 1,299 4 Other comprehensive income (loss), net of tax: Cumulative translation adjustment (171) (170) (1) Defined benefit pension and post-retirement plans adjustment 87 87 Cash flow hedging instruments (1) (1) Total other comprehensive income (loss), net of tax (85) Dividends declared (852) (852) Stock-based compensation 130 130 Reacquired stock (773) (773) Issuances pursuant to stock option and benefit plans 164 (212) 376 Balance at March 31, 2022 $ 15,004 $ 6,568 $ 46,056 $ (30,860) $ (6,834) $ 74 Three months ended March 31, 2021 3M Company Shareholders (Millions) Total Common Retained Treasury Accumulated Non- Balance at December 31, 2020 $ 12,931 $ 6,171 $ 43,821 $ (29,404) $ (7,721) $ 64 Net income 1,627 1,624 3 Other comprehensive income (loss), net of tax: Cumulative translation adjustment (222) (223) 1 Defined benefit pension and post-retirement plans adjustment 119 119 Cash flow hedging instruments 58 58 Total other comprehensive income (loss), net of tax (45) Dividends declared (858) (858) Stock-based compensation 121 121 Reacquired stock (243) (243) Issuances pursuant to stock option and benefit plans 295 (332) 627 Balance at March 31, 2021 $ 13,828 $ 6,292 $ 44,255 $ (29,020) $ (7,767) $ 68 Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component Three months ended March 31, 2022 (Millions) Cumulative Defined Benefit Cash Flow Total Balance at December 31, 2021, net of tax: $ (1,943) $ (4,753) $ (54) $ (6,750) Other comprehensive income (loss), before tax: Amounts before reclassifications (150) — 6 (144) Amounts reclassified out — 115 (7) 108 Total other comprehensive income (loss), before tax (150) 115 (1) (36) Tax effect (20) (28) — (48) Total other comprehensive income (loss), net of tax (170) 87 (1) (84) Balance at March 31, 2022, net of tax: $ (2,113) $ (4,666) $ (55) $ (6,834) Three months ended March 31, 2021 (Millions) Cumulative Defined Benefit Cash Flow Total Balance at December 31, 2020, net of tax: $ (1,450) $ (6,098) $ (173) $ (7,721) Other comprehensive income (loss), before tax: Amounts before reclassifications (176) — 66 (110) Amounts reclassified out — 159 9 168 Total other comprehensive income (loss), before tax (176) 159 75 58 Tax effect (47) (40) (17) (104) Total other comprehensive income (loss), net of tax (223) 119 58 (46) Balance at March 31, 2021, net of tax: $ (1,673) $ (5,979) $ (115) $ (7,767) Income taxes are not provided for foreign translation relating to permanent investments in international subsidiaries, but tax effects within cumulative translation do 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 Details about Accumulated Other Amount Reclassified from Location on Income Three months ended (Millions) 2022 2021 Defined benefit pension and postretirement plans adjustments Gains (losses) associated with defined benefit pension and postretirement plans amortization Transition asset $ — $ — Other (expense) income, net Prior service benefit 13 15 Other (expense) income, net Net actuarial loss (127) (173) Other (expense) income, net Curtailments/Settlements (1) (1) Other (expense) income, net Total before tax (115) (159) Tax effect 28 40 Provision for income taxes Net of tax (87) (119) Cash flow hedging instruments gains (losses) Foreign currency forward/option contracts 9 (7) Cost of sales Interest rate contracts (2) (2) Interest expense Total before tax 7 (9) Tax effect (2) 2 Provision for income taxes Net of tax 5 (7) Total reclassifications for the period, net of tax $ (82) $ (126) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the first quarter of 2022 was 18.8 percent, compared to 16.4 percent in the first quarter of 2021, an increase of 2.4 percentage points. The primary factor that increased the Company’s effective tax rate included adjustments to reserves for uncertain tax positions. The total amounts of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of March 31, 2022 and December 31, 2021 are $1,150 million and $1,112 million, respectively. It is reasonably possible that the amount of unrecognized tax benefits could significantly change within the next 12 months. At this time, the Company is not able to estimate the range by which these potential events could impact 3M’s unrecognized tax benefits in the next 12 months. As of March 31, 2022 and December 31, 2021, the Company had valuation allowances of $141 million and $142 million on its deferred tax assets, respectively. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2022 | |
Debt Securities, Available-for-sale [Abstract] | |
Marketable Securities | Marketable Securities The Company invests in asset-backed securities, certificates of deposit/time deposits, commercial paper, and other securities. The following is a summary of amounts recorded on the Consolidated Balance Sheet for marketable securities (current and non-current). (Millions) March 31, December 31, Commercial paper $ 35 $ 109 Certificates of deposit/time deposits 24 14 U.S. treasury securities 50 75 U.S. municipal securities 3 3 Current marketable securities 112 201 U.S. municipal securities 27 27 Non-current marketable securities 27 27 Total marketable securities $ 139 $ 228 At March 31, 2022 and December 31, 2021, gross unrealized, gross realized, and net realized gains and/or losses (pre-tax) were not material. The balances at March 31, 2022 for marketable securities by contractual maturity are shown below. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. (Millions) March 31, Due in one year or less $ 112 Due after one year through five years 15 Due after five years through ten years 12 Total marketable securities $ 139 |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Borrowings | Long-Term Debt and Short-Term Borrowings In February 2022, 3M repaid 500 million euros aggregate principal amount of fixed-rate medium-term notes that matured. 2021 issuances, maturities, and extinguishments of short- and long-term debt are described in Note 5 to the Consolidated Financial Statements in 3M’s 2021 Annual Report on Form 10-K. The Company had no commercial paper outstanding at March 31, 2022 and December 31, 2021. Future Maturities of Long-term Debt Maturities of long-term debt in the table below reflect the impact of put provisions associated with certain debt instruments and are net of the unamortized debt issue costs such that total maturities equal the carrying value of long-term debt as of March 31, 2022. The maturities of long-term debt for the periods subsequent to March 31, 2022 are as follows (in millions): Remainder of 2022 2023 2024 2025 2026 2027 After 2027 Total $ 723 $ 1,908 $ 1,100 $ 1,793 $ 1,468 $ 845 $ 8,836 $ 16,673 |
Pension and Postretirement Bene
Pension and Postretirement Benefit Plans | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefit Plans | Pension and Postretirement Benefit Plans The service cost component of defined benefit net periodic benefit cost is recorded in cost of sales; selling, general and administrative expenses; and research, development and related expenses. The other components of net periodic benefit cost are reflected in other expense (income), net. Components of net periodic benefit cost and other supplemental information for the three months ended March 31, 2022 and 2021 follow: Benefit Plan Information Three months ended March 31, Qualified and Non-qualified Postretirement United States International (Millions) 2022 2021 2022 2021 2022 2021 Net periodic benefit cost (benefit) Operating expense Service cost $ 64 $ 72 $ 35 $ 42 $ 11 $ 12 Non-operating expense Interest cost 104 90 32 25 13 11 Expected return on plan assets (241) (264) (72) (81) (18) (19) Amortization of transition asset — — — — — — Amortization of prior service benefit (6) (6) — (1) (7) (8) Amortization of net actuarial loss 106 132 11 27 10 14 Settlements, curtailments, special termination benefits and other — — — — 1 1 Total non-operating expense (benefit) (37) (48) (29) (30) (1) (1) Total net periodic benefit cost (benefit) $ 27 $ 24 $ 6 $ 12 $ 10 $ 11 For the three months ended March 31, 2022 contributions totaling $41 million were made to the Company’s U.S. and international pension plans and $1 million to its postretirement plans. For total year 2022, the Company expects to contribute in the range of $100 million to $200 million of cash to its global defined benefit pension and postretirement plans. The Company does not have a required minimum cash pension contribution obligation for its U.S. plans in 2022. Future contributions will depend on market conditions, interest rates and other factors. 3M’s annual measurement date for pension and postretirement assets and liabilities is December 31 each year, which is also the date used for the related annual measurement assumptions. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company uses interest rate swaps, currency swaps, and forward and option contracts to manage risks generally associated with foreign exchange rate, interest rate and commodity price fluctuations. Note 14 to the Consolidated Financial Statements in 3M's 2021 Annual Report on Form 10-K explains the types of derivatives and financial instruments used by 3M, how and why 3M uses such instruments, and how such instruments are accounted for. It also contains information regarding previously initiated contracts or instruments. Additional information with respect to derivatives is included elsewhere as follows: • Impact on other comprehensive income of nonderivative hedging and derivative instruments is included in Note 7. • Fair value of derivative instruments is included in Note 13. • Derivatives and/or hedging instruments associated with the Company’s long-term debt are described in Note 12 to the Consolidated Financial Statements in 3M’s 2021 Annual Report on Form 10-K. Refer to the section below titled Statement of Income Location and Impact of Cash Flow and Fair Value Derivative Instruments and Derivatives Not Designated as Hedging Instruments for details on the location within the consolidated statements of income for amounts of gains and losses related to derivative instruments designated as cash flow or fair value hedges (along with similar information relative to the hedged items) and derivatives not designated as hedging instruments. Additional information relative to cash flow hedges, fair value hedges, net investment hedges and derivatives not designated as hedging instruments is included below as applicable. Cash Flow Hedges: As of March 31, 2022, the Company had a balance of $55 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 $98 million (after-tax loss) related to the forward starting interest rate swap and treasury rate lock contracts, which will be amortized over the respective lives of the notes. Based on exchange rates as of March 31, 2022, of the total after-tax net unrealized balance as of March 31, 2022, 3M expects to reclassify approximately $19 million after-tax net unrealized gain over the next 12 months (with the impact offset by earnings/losses from underlying hedged items). The amount of pretax gain (loss) recognized in other comprehensive income related to derivative instruments designated as cash flow hedges is provided in the following table. Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative Three months ended (Millions) 2022 2021 Foreign currency forward/option contracts $ 6 $ 66 Interest rate contracts — — Total $ 6 $ 66 Fair Value Hedges: The following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges: (Millions) Carrying Value of the Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities Location on the Consolidated Balance Sheet March 31, December 31, March 31, December 31, Short-term borrowings and current portion of long-term debt $ — $ — $ — $ — Long-term debt 949 997 (52) (4) Total $ 949 $ 997 $ (52) $ (4) Net Investment Hedges: At March 31, 2022, the total notional amount of foreign exchange forward contracts designated in net investment hedges was approximately 150 million euros, along with a principal amount of long-term debt instruments designated in net investment hedges totaling 2.4 billion euros. The maturity dates of these derivative and nonderivative instruments designated in net investment hedges range from 2022 to 2031. The amount of gain (loss) excluded from effectiveness testing recognized in income relative to instruments designated in net investment hedge relationships is not material. The amount of pretax gain (loss) recognized in other comprehensive income related to derivative and nonderivative instruments designated as net investment hedges are as follows. Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income Three months ended (Millions) 2022 2021 Foreign currency denominated debt $ 59 $ 167 Foreign currency forward contracts 2 2 Total $ 61 $ 169 Statement of Income Location and Impact of Cash Flow and Fair Value Derivative Instruments and Derivatives Not Designated as Hedging Instruments The location in the consolidated statement of income and pre-tax amounts recognized in income related to derivative instruments designated in cash flow or fair value hedging relationships and for derivatives not designated as hedging instruments are as follows: Location and Amount of Gain (Loss) Recognized in Income Three months ended March 31, Cost of sales Other expense (income), net (Millions) 2022 2021 2022 2021 Information regarding cash flow and fair value hedging relationships: Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of derivatives are recorded $ 4,826 $ 4,525 $ 38 $ 49 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 9 (7) — — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — — (2) (2) Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items — — 48 2 Derivatives designated as hedging instruments — — (48) (2) Information regarding derivatives not designated as hedging instruments: Gain or (loss) on derivatives not designated as instruments: Foreign currency forward/option contracts (20) — 25 22 Location, Fair Value, and Gross Notional Amounts of Derivative Instruments The following tables summarize the fair value of 3M’s derivative instruments, excluding nonderivative instruments used as hedging instruments, and their location in the consolidated balance sheet. Notional amounts below are presented at period end foreign exchange rates, except for certain interest rate swaps, which are presented using the inception date’s foreign exchange rate. Gross Notional Amount Assets Liabilities (Millions) Location Fair Value Amount Location Fair Value Amount March 31, December 31, March 31, December 31, March 31, December 31, Derivatives designated as hedging instruments Foreign currency forward/option contracts 1,835 1,768 Other current assets $ 58 $ 54 Other current liabilities $ 25 $ 19 Foreign currency forward/option contracts 807 800 Other assets 41 41 Other liabilities 3 1 Interest rate contracts 800 800 Other assets — — Other liabilities 57 9 Total derivatives designated as hedging instruments 99 95 85 29 Derivatives not designated as hedging instruments Foreign currency forward/option contracts 4,465 3,731 Other current assets 13 24 Other current liabilities 27 4 Total derivatives not designated as hedging instruments 13 24 27 4 Total derivative instruments $ 112 $ 119 $ 112 $ 33 Credit Risk and Offsetting of Assets and Liabilities of Derivative Instruments The Company is exposed to credit loss in the event of nonperformance by counterparties in interest rate swaps, currency swaps, and forward and option contracts. However, the Company’s risk is limited to the fair value of the instruments. The Company actively monitors its exposure to credit risk through the use of credit approvals and credit limits, and by selecting major international banks and financial institutions as counterparties. 3M enters into master netting arrangements with counterparties when possible to mitigate credit risk in derivative transactions. A master netting arrangement may allow each counterparty to net settle amounts owed between a 3M entity and the counterparty as a result of multiple, separate derivative transactions. The Company does not anticipate nonperformance by any of these counterparties. 3M has elected to present the fair value of derivative assets and liabilities within the Company’s consolidated balance sheet on a gross basis even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. However, the following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria in the event of default or termination as stipulated by the terms of netting arrangements with each of the counterparties. For each counterparty, if netted, the Company would offset the asset and liability balances of all derivatives at the end of the reporting period based on the 3M entity that is a party to the transactions. Derivatives not subject to master netting agreements are not eligible for net presentation. Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties Gross Amounts not Offset in the Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Recognized Derivative Liabilities Cash Net Amount of (Millions) March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, December 31, 2021 Derivatives subject to master netting agreements $ 112 $ 119 $ 40 $ 25 $ — $ — $ 72 $ 94 Derivatives not subject to master netting agreements — — — — Total $ 112 $ 119 $ 72 $ 94 Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties Gross Amounts not Offset in the Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Recognized Derivative Assets Cash Net Amount of (Millions) March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Derivatives subject to master netting agreements $ 110 $ 33 $ 40 $ 25 $ — $ — $ 70 $ 8 Derivatives not subject to master netting agreements 2 — 2 — Total $ 112 $ 33 $ 72 $ 8 Currency Effects 3M estimates that year-on-year foreign currency transaction effects, including hedging impacts, increased pre-tax income by approximately $17 million and decreased pre-tax income by approximately $10 million for the three months ended March 31, 2022 and 2021, respectively. These estimates include transaction gains and losses, including derivative instruments designed to reduce foreign currency exchange rate risks. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 3M follows ASC 820, Fair Value Measurements and Disclosures, with respect to assets and liabilities that are measured at fair value on a recurring basis and nonrecurring basis. In addition to the information above, refer to Note 15 to the Consolidated Financial Statements in 3M’s 2021 Annual Report on Form 10-K for a qualitative discussion of the assets and liabilities that are measured at fair value on a recurring and nonrecurring basis, a description of the valuation methodologies used by 3M, and categorization within the valuation framework of ASC 820. The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis. Fair Value at Fair Value Measurements Using Inputs Considered as Level 1 Level 2 Level 3 Description (Millions) March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Assets: Available-for-sale: Marketable securities: Commercial paper 35 109 — — 35 109 — — Certificates of deposit/time deposits 24 14 — — 24 14 — — U.S. treasury securities 50 75 50 75 — — — — U.S. municipal securities 30 30 — — — — 30 30 Derivative instruments — assets: Foreign currency forward/option contracts 112 119 — — 112 119 — — Liabilities: Derivative instruments — liabilities: Foreign currency forward/option contracts 55 24 — — 55 24 — — Interest rate contracts 57 9 — — 57 9 — — The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis in the table above that used significant unobservable inputs (level 3). Marketable securities — certain U.S. municipal securities only Three months ended (Millions) 2022 2021 Beginning balance $ 30 $ 34 Total gains or losses: Included in earnings — — Included in other comprehensive income — — Purchases and issuances — — Sales and settlements — — Transfers in and/or out of level 3 — — Ending balance $ 30 $ 34 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 to the Consolidated Financial Statements in 3M’s 2021 Annual Report on Form 10-K. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis: Disclosures are required for certain assets and liabilities that are measured at fair value, but are recognized and disclosed at fair value on a nonrecurring basis in periods subsequent to initial recognition. For 3M, such measurements of fair value relate primarily to indefinite-lived and long-lived asset impairments, goodwill impairments, and adjustment in carrying value of equity securities for which the measurement alternative of cost less impairment plus or minus observable price changes is used. There were no material impairments of assets or adjustments to equity securities using the measurement alternative for the three months ended March 31, 2022 and 2021. Fair Value of Financial Instruments: The Company’s financial instruments include cash and cash equivalents, marketable securities, accounts receivable, certain investments, accounts payable, borrowings, and derivative contracts. The fair values of cash equivalents, accounts receivable, accounts payable, and short-term borrowings and current portion of long-term debt approximated carrying values because of the short-term nature of these instruments. Available-for-sale marketable securities, in addition to certain derivative instruments, are recorded at fair values as indicated in the preceding disclosures. To estimate fair values (classified as level 2) for its long-term debt, the Company utilized third-party quotes, which are derived all or in part from model prices, external sources, market prices, or the third-party’s internal records. Information with respect to the carrying amounts and estimated fair values of these financial instruments follow: March 31, 2022 December 31, 2021 (Millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, excluding current portion $ 14,801 $ 15,076 $ 16,056 $ 17,601 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 March 31, 2022 and December 31, 2021 due to the lower interest rates and tighter credit spreads compared to issuance levels. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings: The Company and some of its subsidiaries are involved in numerous claims and lawsuits, principally in the United States, and regulatory proceedings worldwide. These claims, lawsuits and proceedings include, but are not limited to, products liability (involving products that the Company now or formerly manufactured and sold), intellectual property, commercial, antitrust, federal healthcare program related laws and regulations, such as the False Claims Act and anti-kickback laws, securities, and environmental laws in the United States and other jurisdictions. Unless otherwise stated, the Company is vigorously defending all such litigation and proceedings. From time to time, the Company also receives subpoenas, investigative demands or requests for information from various government agencies. The Company generally responds in a cooperative, thorough and timely manner. These responses sometimes require time and effort and can result in considerable costs being incurred by the Company. Such requests can also lead to the assertion of claims or the commencement of administrative, civil or criminal legal proceedings against the Company and others, as well as to settlements. The outcomes of legal proceedings and regulatory matters are often difficult to predict. Any determination that the Company’s operations or activities are not, or were not, in compliance with applicable laws or regulations could result in the imposition of fines, civil or criminal penalties, and equitable remedies, including disgorgement, suspension or debarment or injunctive relief. Additional information about the Company’s process for disclosure and recording of liabilities and insurance receivables related to legal proceedings can be found in Note 16 “Commitments and Contingencies” to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. 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 March 31, 2022, the Company is a named defendant, with multiple co-defendants, in numerous lawsuits in various courts that purport to represent approximately 4,012 individual claimants, compared to approximately 3,876 individual claimants with actions pending December 31, 2021. The vast majority of the lawsuits and claims resolved by and currently pending against the Company allege use of some of the Company’s mask and respirator products and seek damages from the Company and other defendants for alleged personal injury from workplace exposures to asbestos, silica, coal mine dust or other occupational dusts found in products manufactured by other defendants or generally in the workplace. A minority of the lawsuits and claims resolved by and currently pending against the Company generally allege personal injury from occupational exposure to asbestos from products previously manufactured by the Company, which are often unspecified, as well as products manufactured by other defendants, or occasionally at Company premises. The Company’s current volume of new and pending matters is substantially lower than it experienced at the peak of filings in 2003. The Company expects that filing of claims by unimpaired claimants in the future will continue to be at much lower levels than in the past. Accordingly, the number of claims alleging more serious injuries, including mesothelioma, other malignancies, and black lung disease, will represent a greater percentage of total claims than in the past. Over the past twenty The Company has demonstrated in these past trial proceedings that its respiratory protection products are effective as claimed when used in the intended manner and in the intended circumstances. Consequently, the Company believes that claimants are unable to establish that their medical conditions, even if significant, are attributable to the Company’s respiratory protection products. Nonetheless, the Company’s litigation experience indicates that claims of persons alleging more serious injuries, including mesothelioma, other malignancies, and black lung disease, are costlier to resolve than the claims of unimpaired persons, and it therefore believes the average cost of resolving pending and future claims on a per-claim basis will continue to be higher than it experienced in prior periods when the vast majority of claims were asserted by medically unimpaired claimants. Since the second half of 2020, the Company has experienced an increase in the number of cases filed that allege injuries from exposures to coal mine dust; that increase represents the substantial majority of the growth in case numbers referred to above. As previously reported, the State of West Virginia, through its Attorney General, filed a complaint in 2003 against the Company and two other manufacturers of respiratory protection products in the Circuit Court of Lincoln County, West Virginia, and amended its complaint in 2005. The amended complaint seeks substantial, but unspecified, compensatory damages primarily for reimbursement of the costs allegedly incurred by the State for worker’s compensation and healthcare benefits provided to all workers with occupational pneumoconiosis and unspecified punitive damages. In October 2019, the court granted the State’s motion to sever its unfair trade practices claim. 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. Trial for the unfair trade practices claims has been set for August 2022. No liability has been recorded for this matter because the Company believes that liability is not probable and reasonably estimable at this time. In addition, the Company is not able to estimate a possible loss or range of loss given the lack of any meaningful discovery responses by the State of West Virginia, 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 the first three months of 2022 for respirator mask/asbestos liabilities by $14 million. In the first three months of 2022, the Company made payments for legal defense costs and settlements of $28 million related to the respirator mask/asbestos litigation. As of March 31, 2022, the Company had an accrual for respirator mask/asbestos liabilities (excluding Aearo accruals) of $626 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 March 31, 2022, 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 March 31, 2022, 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 March 31, 2022, the Company, through its Aearo subsidiary, had accruals of $41 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 reflects the Company’s assessment of pending and expected lawsuits, its review of its respirator mask/asbestos liabilities, and the cost of resolving claims of persons who claim more serious injuries. Responsibility for legal costs, as well as for settlements and judgments, is currently shared in an informal arrangement among Aearo, Cabot, American Optical Corporation and a subsidiary of Warner Lambert and their respective insurers (the “Payor Group”). Liability is allocated among the parties based on the number of years each company sold respiratory products under the “AO Safety” brand and/or owned the AO Safety Division of American Optical Corporation and the alleged years of exposure of the individual plaintiff. Aearo’s share of the contingent liability is further limited by an agreement entered into between Aearo and Cabot on July 11, 1995. This agreement provides that, so long as Aearo pays to Cabot a quarterly fee of $100,000, Cabot will retain responsibility and liability for, and indemnify Aearo against, any product liability claims involving exposure to asbestos, silica, or silica products for respirators sold prior to July 11, 1995. Because of the difficulty in determining how long a particular respirator remains in the stream of commerce after being sold, Aearo and Cabot have applied the agreement to claims arising out of the alleged use of respirators involving exposure to asbestos, silica or silica products prior to January 1, 1997. With these arrangements in place, Aearo’s potential liability is limited to exposures alleged to have arisen from the use of respirators involving exposure to asbestos, silica, or silica products on or after January 1, 1997. To date, Aearo has elected to pay the quarterly fee. Aearo could potentially be exposed to additional claims for some part of the pre-July 11, 1995 period covered by its agreement with Cabot if Aearo elects to discontinue its participation in this arrangement, or if Cabot is no longer able to meet its obligations in these matters. Developments may occur that could affect the estimate of Aearo’s liabilities. These developments include, but are not limited to: (i) significant changes in the number of future claims, (ii) significant changes in the average cost of resolving claims, (iii) significant changes in the legal costs of defending these claims, (iv) significant changes in the mix and nature of claims received, (v) trial and appellate outcomes, (vi) significant changes in the law and procedure applicable to these claims, (vii) significant changes in the liability allocation among the co-defendants, (viii) the financial viability of members of the Payor Group including exhaustion of available insurance coverage limits, and/or (ix) a determination that the interpretation of the contractual obligations on which Aearo has estimated its share of liability is inaccurate. The Company cannot determine the impact of these potential developments on its current estimate of Aearo’s share of liability for these existing and future claims. If any of the developments described above were to occur, the actual amount of these liabilities for existing and future claims could be significantly larger than the amount accrued. Because of the inherent difficulty in projecting the number of claims that have not yet been asserted, the complexity of allocating responsibility for future claims among the Payor Group, and the several possible developments that may occur that could affect the estimate of Aearo’s liabilities, the Company cannot estimate the amount or range of amounts by which Aearo’s liability may exceed the accrual the Company has established. Environmental Matters and Litigation The Company’s operations are subject to environmental laws and regulations including those pertaining to air emissions, wastewater discharges, toxic 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” that follows for information on the amount of the accrual for such liabilities. Environmental Matters As previously reported, the Company has been voluntarily cooperating with ongoing reviews by local, state, federal (primarily the U.S. Environmental Protection Agency (EPA)), and international agencies of possible environmental and health effects of various perfluorinated compounds, including perfluorooctanoate (PFOA), perfluorooctane sulfonate (PFOS), perfluorohexane sulfonate (PFHxS), 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. PFAS Regulatory Activity 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 both preliminary and on-going 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 the second half of 2020, PFOA is subject to broad restrictions under the EU’s Persistent Organic Pollutants (POPs) Regulation. Dyneon, a 3M subsidiary that operates a facility at Gendorf, Germany, has a recycling process for a critical emulsifier from which small amounts of PFOA are present after recycling, as an unintended and unavoidable byproduct of certain earlier process steps. The recycling process removes and concentrates the PFOA for incineration in accordance with applicable waste law. With respect to the applicability of the recently enacted POPs, Dyneon proactively consulted with the relevant German regulatory authority regarding process improvements underway that are designed to ensure compliance with the PFOA limits in the recycled material. In October 2021, Dyneon also discussed with the authority technical complexities it had recently discovered in achieving PFOA reductions. The engagement is ongoing. In addition, as previously disclosed, 3M Belgium, a subsidiary of the Company, has been working with the Public Flemish Waste Agency (OVAM) for several years to investigate and remediate historical PFOA contaminations at and near the 3M Belgium facility in Zwijndrecht, Antwerp, Belgium. In connection with a ring road construction project (the Oosterweel Project) in Antwerp that has involved extensive soil work, an investigative committee with judicial investigatory powers was formed in June 2021 by the Flemish Parliament to investigate PFAS found in the soil and groundwater near the Zwijndrecht facility. The Company testified at Flemish parliamentary committee hearings in June and September 2021 on PFAS-related matters. The Flemish Parliament, the Minister of the Environment, and regulatory authorities have initiated investigations and demands for information related to the release of PFAS from the Zwijndrecht facility. The Company is cooperating with the authorities in the investigations and information requests. Separately, as previously disclosed, the Company is aware that certain residents of Zwijndrecht have filed a criminal complaint with an Antwerp investigatory judge against 3M Belgium, alleging it had unlawfully abandoned waste in violation of its environmental care obligations. 3M Belgium has not been served with any such complaint. Safety measures – wastewater discharge. In August 2021, the Flemish Government served 3M Belgium with a notice of intent to impose a safety measure (wastewater discharge stoppage) and issued an infraction report alleging permit and/or legal violations in connection with the discharge of certain specific PFAS compounds for alleged lack of specific authorization. Following discussions with the government officials, 3M Belgium implemented a focused safety measure that would allow continued production activities and plans to contest through appeal the underlying legal and factual basis for the safety measure. Separately, the permitting authority has initiated a process to tighten the wastewater discharge limits immediately. In October 2021, the Province of Antwerp adopted lower discharge limits for the nine PFAS compounds specifically identified in the water discharge permit and added a special condition that essentially prohibits discharge of any PFAS chemistry without a specific limit in the permit. The action by the Province was timely appealed and a hearing on the appeal was held in January 2022. The Flemish Regional Environmental Permit Commission subsequently issued a recommendation that the appeal be denied and that lower limits on PFAS compounds be imposed immediately. In March 2022, the Flemish Minister of the Environment issued an order denying 3M Belgium’s appeal of the discharge permit modification, and a subsequent request for emergency suspension of the permit modification was also denied. 3M Belgium is complying with the modified discharge permit and is engaging in discussions with enforcement authorities to reconcile the new permit modification with certain pre-existing Flemish government environmental orders that require PFAS treatment. Certain non-PFAS manufacturing operations continue under enforcement discretion. The current wastewater discharge permit is scheduled to expire at the end of June 2022; 3M Belgium has applied for renewal and is in discussions with the authority regarding the applicability of the modified discharge limits and other terms in a new permit. The adverse ruling on the appeal restricts the discharge of wastewater under the special condition noted above, which has resulted in continued idling of certain processes that materially and adversely impacts the facility’s operations, and further enforcement could cause further disruption to operations at the facility, including the possibility of causing the facility to cease operations. While the Company is exploring multiple options to mitigate the impact of the adverse ruling, a prolonged suspension or interruption of the facility's operations, or unfavorable terms upon renewal of the current discharge permit, could have a significant adverse impact on the Company's businesses that receive products and other materials from the facility, some of which may not be available in similar quantities from other 3M facilities, which could in turn impact these businesses’ ability to fulfill supply obligations to their customers. Safety measure – air emissions. As previously disclosed, in October 2021, the Flemish environmental agency issued a new safety measure that prohibits all emissions of all forms of PFAS from the facility unless and until specifically approved on a process-by-process basis. 3M Belgium thereupon commenced an immediate appeal process to the Council of States, seeking, among other things, urgent suspension of the safety measure during the pendency of the appeal process. At the same time, 3M Belgium initiated efforts to comply with the safety measure by temporarily idling the affected production at the facility. The Council of States declined to grant urgent suspension of the safety measure. An unsuccessful appeal of the safety measure would extend the period the affected production is idled and could have a material negative impact on the Zwijndrecht facility’s operations. 3M Belgium has established a regular cadence of meetings with the relevant authorities in connection with the requests to restart specific production processes that may result in emissions to air. The authorities have accepted the third-party experts proposed by 3M Belgium who are required by the safety measure to review and opine on proposals necessary for restarting processes in accordance with the safety measure's limitations on emissions to air. Although some requests have been approved for testing purposes, and the facility is taking actions to remedy emission issues, a prolonged suspension and idling of the facility's operations could have a significant adverse impact on the Company's businesses that receive products and other materials from the facility, some of which may not be available in similar quantities from other 3M facilities, which could in turn impact these businesses’ ability to fulfill supply obligations to their customers. Administrative measure – soil piles. In September 2021, the Flemish Government served 3M Belgium with a notice of intent to impose an administrative measure related to the removal and potential remediation of soil piles on the Zwijndrecht site. Although 3M Belgium has been in discussions with the relevant authorities, removal and remediation of the soil piles has not been possible in the timeframe specified in the administrative measure, which may lead to the imposition of administrative fines. Notice of default – environmental law compliance. Also in September 2021, the Flemish Region issued a notice of default alleging violations of environmental laws and seeking PFAS-related information, indemnity and a remediation plan for soil and water impacts due to PFAS originating from the Zwijndrecht facility. In September 2021, 3M responded to the notice of default and announced a plan to invest up to 125 million euros in the next three years in actions related to the Zwijndrecht community, including support for local commercial farmers impacted by restrictions on sale of agricultural products, and enhancements to site discharge control technologies. 3M is also committed to payment for ongoing off-site descriptive soil investigation and appropriate soil remediation. In March 2022, the Company announced an investment of 150 million euros to advance remedial actions to address legacy PFAS previously produced at the Zwijndrecht facility. An accredited third-party soil remediation expert has recently progressed towards a remedial action plan based on a descriptive soil investigation that would help inform 3M Belgium’s remedial actions onsite and in certain surrounding areas. 3M Belgium representatives continue to have discussions with the relevant authorities regarding further remedial actions. In the United States, the EPA has developed human health effects documents summarizing the available data studies of both PFOA and PFOS. 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’s 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. The U.S. Agency for Toxic Substances and Disease Registry (ATSDR) within the Department of Health and Human Services released a draft Toxicological Profile for PFAS for public review and comment in June 2018. In the draft report, ATSDR proposed draft minimal risk levels (MRLs) for PFOS, PFOA and several other PFAS. An MRL is an estimate of the daily human exposure to a hazardous substance that is likely to be without appreciable risk of adverse non-cancer health effects over a specified duration of exposure. MRLs establish a screening level and are not intended to define cleanup or action levels for ATSDR or other agencies. In May 2021, ATSDR released a final toxicological profile for certain PFAS that preserved the draft MRLs. Earlier, in April 2021, EPA released a final toxicity assessment for PFBS. As periodically required under the Safe Drinking Water Act (SDWA), the EPA published in May 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 exceeded the level for PFOA and 46 exceeded the level for PFOS (unchanged from the July 2016 EPA summary). 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. In December 2021, EPA published the fifth version of the unregulated contaminant monitoring rule, which requires monitoring for 29 PFAS compounds between 2023 and 2025. With respect to PFOA and PFOS in groundwater, 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 October 2021, EPA released its “PFAS Strategic Roadmap: EPA's Commitments to Action 2021-2024,” which presents EPA’s approach to PFAS, including investing in research to increase an understanding of PFAS, pursuing a comprehensive approach to proactively control PFAS exposures to humans and the environment, and broadening and accelerating the scope of clean-up of PFAS in the environment. The 2021-2024 Roadmap sets timelines by which EPA plans to take specific actions, including, among other items, publishing a national PFAS testing strategy, proposing to designate PFOA and PFOS as CERCLA hazardous substances, restricting PFAS discharges from industrial sources through Effluent Limitations Guidelines, publishing the final toxicity assessment for five additional PFAS compounds, requiring water systems to test for 29 PFAS compounds under the SDWA, and publishing improved analytical methods in eight different environmental matrices to monitor 40 PFAS compounds present in wastewater and stormwater discharges. EPA previously published its intention to initiate a process to develop a national primary drinking water regulation for PFOA and PFOS; the process is expected to take several years and will include further analyses, scientific review and opportunities for public comment. EPA initiated the first step in the process i |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation At the May 2021 Annual Meeting, the shareholders approved the Amended and Restated 3M Company 2016 Long-Term Incentive Plan (LTIP), which included an increase of 26,633,508 in the number of shares available for issuance. Awards may be issued in the form of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock awards, and performance units and performance shares. As of March 31, 2022, the remaining shares available for grant under the LTIP Program are 31 million. The Company’s annual stock option and restricted stock unit grant is made in February to provide a strong and immediate link between the performance of individuals during the preceding year and the size of their annual stock compensation grants. The grant to eligible employees uses the closing stock price on the grant date. Accounting rules require recognition of expense under a non-substantive vesting period approach, requiring compensation expense recognition when an employee is eligible to retire. Employees are considered eligible to retire at age 55 and after having completed ten years of service. This retiree-eligible population represents 36 percent of the annual grant stock-based compensation expense; therefore, higher stock-based compensation expense is recognized in the first quarter. In addition to the annual grants, the Company makes other minor grants of stock options, restricted stock units and other stock-based grants. The Company issues cash settled restricted stock units and stock appreciation rights in certain countries. These grants do not result in the issuance of common stock and are considered immaterial by the Company. Amounts recognized in the financial statements with respect to stock-based compensation programs, which include stock options, restricted stock, restricted stock units, performance shares and the General Employees’ Stock Purchase Plan (GESPP), are provided in the following table. Capitalized stock-based compensation amounts were not material for the three months ended March 31, 2022 and 2021. Stock-Based Compensation Expense Three months ended (Millions) 2022 2021 Cost of sales $ 24 $ 22 Selling, general and administrative expenses 83 84 Research, development and related expenses 28 25 Stock-based compensation expenses 135 131 Income tax benefits (37) (51) Stock-based compensation expenses (benefits), net of tax $ 98 $ 80 Stock Option Program The following table summarizes stock option activity during the three months ended March 31, 2022: (Options in thousands) Number of Weighted Weighted Average Aggregate Under option — January 1 34,560 $ 163.52 Granted 3,776 162.39 Exercised (1,111) 95.04 Forfeited (156) 174.36 March 31 37,069 165.42 65 $ 191,760 Options exercisable March 31 29,505 $ 165.47 54 $ 191,760 Stock options vest over a period from one year to three years with the expiration date at 10 years from date of grant. As of March 31, 2022, there was $88 million of compensation expense that has yet to be recognized related to non-vested stock option based awards. This expense is expected to be recognized over the remaining weighted-average vesting period of 26 months. The total intrinsic values of stock options exercised were $83 million and $180 million during the three months ended March 31, 2022 and 2021, respectively. Cash received from options exercised was $103 million and $240 million for the three months ended March 31, 2022 and 2021, respectively. The Company’s actual tax benefits realized for the tax deductions related to the exercise of employee stock options were $17 million and $38 million for the three months ended March 31, 2022 and 2021, respectively. For the primary 2022 annual stock option grant, the weighted average fair value at the date of grant was calculated using the Black-Scholes option-pricing model and the assumptions that follow. Stock Option Assumptions Annual 2022 Exercise price $ 162.41 Risk-free interest rate 1.9 % Dividend yield 2.9 % Expected volatility 21.8 % Expected life (months) 83 Black-Scholes fair value $ 25.34 Expected volatility is a statistical measure of the amount by which a stock price is expected to fluctuate during a period. For the 2022 annual grant date, the Company estimated the expected volatility based upon the following three volatilities of 3M stock: the median of the term of the expected life rolling volatility; the median of the most recent term of the expected life volatility; and the implied volatility on the grant date. The expected term assumption is based on the weighted average of historical grants. Restricted Stock and Restricted Stock Units The following table summarizes restricted stock and restricted stock unit activity during the three months ended March 31, 2022: (Shares in thousands) Number of Shares Weighted Average Nonvested balance — As of January 1 1,987 $ 175.96 Granted 1,024 162.18 Vested (497) 200.60 Forfeited (35) 167.51 As of March 31 2,479 165.44 As of March 31, 2022, there was $181 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 28 months. The total fair value of restricted stock and restricted stock units that vested during the three months ended March 31, 2022 and 2021 was $80 million and $78 million, respectively. The Company’s actual tax benefits realized for the tax deductions related to the vesting of restricted stock and restricted stock units was $15 million and $14 million for the three months ended March 31, 2022 and 2021, 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 2022 performance criteria for these performance shares (organic sales growth, free cash flow growth, and earnings per share growth) were selected because the Company believes that they are important drivers of long-term stockholder value. The number of shares of 3M common stock that could actually be delivered at the end of the three-year performance period may be anywhere from 0% to 200% of each performance share granted, depending on the performance of the Company during such performance period. When granted, these performance shares are awarded at 100% of the estimated number of shares at the end of the three-year performance period and are reflected under “Granted” in the table below. Non-substantive vesting requires that expense for the performance shares be recognized over one The following table summarizes performance share activity during the three months ended March 31, 2022: (Shares in thousands) Number of Shares Weighted Average Grant Date Fair Value Undistributed balance — As of January 1 481 $ 175.12 Granted 264 144.75 Distributed (116) 207.49 Performance change (18) 221.38 Forfeited (13) 165.21 As of March 31 598 154.30 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments 3M’s businesses are organized, managed and internally grouped into segments based on differences in markets, products, technologies and services. 3M manages its operations in four business segments: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer. 3M’s four business segments bring together common or related 3M technologies, enhancing the development of innovative products and services and providing for efficient sharing of business resources. Transactions among reportable segments are recorded at cost. 3M is an integrated enterprise characterized by substantial intersegment cooperation, cost allocations and inventory transfers. Therefore, management does not represent that these segments, if operated independently, would report the operating income information shown. 3M discloses business segment operating income as its measure of segment profit/loss, reconciled to both total 3M operating income and income before taxes. Business segment operating income excludes certain expenses and income that are not allocated to business segments (as described below in “Corporate and Unallocated”). Effective in the first quarter of 2022, the measure of segment operating performance used by 3M’s chief operating decision maker (CODM) changed and, as a result, 3M’s disclosed measure of segment profit/loss (business segment operating income) was updated. The change to business segment operating income aligns with the update to how the CODM assesses performance and allocates resources for the Company’s business segments. The changes included the items described below. The financial information presented herein reflects the impact of these business segment reporting changes for all periods presented. Eliminating inclusion of dual credit in measure of segment operating performance 3M business segment operating performance measures were updated to no longer include dual credit to business segments for certain sales and related operating income. Management previously evaluated its business segments based on net sales and operating income performance, including dual credit reporting. 3M reflected additional (“dual”) credit to another business segment when the customer account activity (“sales district”) with respect to the particular product sold to the external customer was provided by a different business segment. For example, privacy screen protection products are primarily sold by the Display Materials and Systems Division within the Transportation and Electronics business segment; however, certain sales districts within the Consumer business segment provide the customer account activity for sales of the product to particular customers. In this example, the non-primary selling segment (Consumer) previously would also have received credit for the associated net sales initiated through its sales district and the related approximate operating income. The offset to the dual credit business segment reporting was reflected as a reconciling item entitled “Elimination of Dual Credit,” such that sales and operating income in total were unchanged. Reflecting certain litigation-related costs in the Safety and Industrial segment's operating performance measure 3M's business segment operating performance measure with respect to its Safety and Industrial business segment was updated relative to litigation-related costs for respirator mask/asbestos litigation matters. Previously, 3M included these costs, when significant, as a special item (as further described below) within Corporate and Unallocated. 3M now includes all litigation-related costs associated with respirator mask/asbestos litigation matters within the Safety and Industrial business segment (along with other Safety and Industrial matters already included therein, such as those related to Combat Arms Earplugs). Business Segment Information (Millions) Three months ended Net Sales 2022 2021 Safety and Industrial 3,051 3,099 Transportation and Electronics 2,340 2,396 Health Care 2,124 2,069 Consumer 1,313 1,289 Corporate and Unallocated 1 (2) Total Company 8,829 8,851 Operating Performance Safety and Industrial 636 752 Transportation and Electronics 496 556 Health Care 448 464 Consumer 224 269 Total business segment operating income 1,804 2,041 Corporate and Unallocated Corporate special items: Net costs for significant litigation (187) (70) Gain/(loss) on sale of businesses — — Other corporate expense - net 24 23 Total Corporate and Unallocated (163) (47) Total Company operating income 1,641 1,994 Other expense/(income), net 38 49 Income before income taxes 1,603 1,945 Corporate and Unallocated Corporate and Unallocated operating income includes “corporate special items” and “other corporate expense-net”. Corporate special items include net costs for significant litigation associated with PFAS-related other environmental matters (see Note 14), gain/loss on sale of businesses (see Note 3), and divestiture-related restructuring costs. Other corporate expense-net includes items such as net costs related to limited unallocated corporate staff and centrally managed material resource centers of expertise costs, corporate philanthropic activity, and other net costs that 3M may choose not to allocate directly to its business segments. Other corporate expense-net also includes costs and income from contract manufacturing, transition services and other arrangements with the acquirer of the former Drug Delivery business following its 2020 divestiture. Items classified as revenue from this activity are included in Corporate and Unallocated net sales. Because Corporate and Unallocated includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The interim consolidated financial statements are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair statement of the Company’s consolidated financial position, results of operations and cash flows for the periods presented. These adjustments consist of normal, recurring items. The results of operations for any interim period are not necessarily indicative of results for the full year. The interim consolidated financial statements and notes are presented as permitted by the requirements for Quarterly Reports on Form 10-Q. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes included in its most recent Annual Report on Form 10-K. Effective in the first quarter of 2022, 3M made changes in the measure of segment operating performance used by 3M’s chief operating decision maker—impacting 3M’s disclosed measure of segment profit/loss (business segment operating income). See additional information in Note 16. 3M's disclosed disaggregated revenue was also updated as a result of the changes in segment reporting. See additional information in Note 2. Information provided herein reflects the impact of these changes for all periods presented. |
Consolidation and foreign currency translation | Consolidation and foreign currency translation Local currencies generally are considered the functional currencies outside the United States with the exception of 3M’s subsidiaries in Argentina, the economy of which is considered highly inflationary and, accordingly, the financial statements of these subsidiaries are remeasured as if their functional currency is that of their parent. Assets and liabilities for operations in local-currency environments are translated at month-end exchange rates of the period reported. Income and expense items are translated at average monthly currency exchange rates in effect during the period. Cumulative translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in shareholders’ equity. 3M has subsidiaries in Turkey. Based on underlying indices, Turkey’s cumulative three-year inflation rate exceeded 100 percent in the first quarter of 2022, thus being considered highly inflationary. As a result, the financial statements of the Turkish subsidiaries will be remeasured as if their functional currency were that of their parent, starting in the second quarter of 2022. The operating income and balances of underlying net monetary assets denominated in Turkish lira are not material to 3M. |
Earnings Per Share | Earnings Per ShareThe difference in the weighted average 3M shares outstanding for calculating basic and diluted earnings per share attributable to 3M common shareholders is a result of the dilution associated with the Company’s stock-based compensation plans. Certain options outstanding under these stock-based compensation plans were not included in the computation of diluted earnings per share attributable to 3M common shareholders because they would have had an anti-dilutive effect of 23.1 million average options for the three months ended March 31, 2022 and 8.7 million average options for the three months ended March 31, 2021. |
New Accounting Pronouncements | New Accounting Pronouncements Refer to Note 1 to the Consolidated Financial Statements in 3M’s 2021 Annual Report on Form 10-K for a discussion of applicable standards issued and not yet adopted by 3M. |
Business Segments | 3M’s businesses are organized, managed and internally grouped into segments based on differences in markets, products, technologies and services. 3M manages its operations in four business segments: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer. 3M’s four business segments bring together common or related 3M technologies, enhancing the development of innovative products and services and providing for efficient sharing of business resources. Transactions among reportable segments are recorded at cost. 3M is an integrated enterprise characterized by substantial intersegment cooperation, cost allocations and inventory transfers. Therefore, management does not represent that these segments, if operated independently, would report the operating income information shown. 3M discloses business segment operating income as its measure of segment profit/loss, reconciled to both total 3M operating income and income before taxes. Business segment operating income excludes certain expenses and income that are not allocated to business segments (as described below in “Corporate and Unallocated”). Effective in the first quarter of 2022, the measure of segment operating performance used by 3M’s chief operating decision maker (CODM) changed and, as a result, 3M’s disclosed measure of segment profit/loss (business segment operating income) was updated. The change to business segment operating income aligns with the update to how the CODM assesses performance and allocates resources for the Company’s business segments. The changes included the items described below. The financial information presented herein reflects the impact of these business segment reporting changes for all periods presented. Eliminating inclusion of dual credit in measure of segment operating performance 3M business segment operating performance measures were updated to no longer include dual credit to business segments for certain sales and related operating income. Management previously evaluated its business segments based on net sales and operating income performance, including dual credit reporting. 3M reflected additional (“dual”) credit to another business segment when the customer account activity (“sales district”) with respect to the particular product sold to the external customer was provided by a different business segment. For example, privacy screen protection products are primarily sold by the Display Materials and Systems Division within the Transportation and Electronics business segment; however, certain sales districts within the Consumer business segment provide the customer account activity for sales of the product to particular customers. In this example, the non-primary selling segment (Consumer) previously would also have received credit for the associated net sales initiated through its sales district and the related approximate operating income. The offset to the dual credit business segment reporting was reflected as a reconciling item entitled “Elimination of Dual Credit,” such that sales and operating income in total were unchanged. Reflecting certain litigation-related costs in the Safety and Industrial segment's operating performance measure 3M's business segment operating performance measure with respect to its Safety and Industrial business segment was updated relative to litigation-related costs for respirator mask/asbestos litigation matters. Previously, 3M included these costs, when significant, as a special item (as further described below) within Corporate and Unallocated. 3M now includes all litigation-related costs associated with respirator mask/asbestos litigation matters within the Safety and Industrial business segment (along with other Safety and Industrial matters already included therein, such as those related to Combat Arms Earplugs). Corporate and Unallocated Corporate and Unallocated operating income includes “corporate special items” and “other corporate expense-net”. Corporate special items include net costs for significant litigation associated with PFAS-related other environmental matters (see Note 14), gain/loss on sale of businesses (see Note 3), and divestiture-related restructuring costs. Other corporate expense-net includes items such as net costs related to limited unallocated corporate staff and centrally managed material resource centers of expertise costs, corporate philanthropic activity, and other net costs that 3M may choose not to allocate directly to its business segments. Other corporate expense-net also includes costs and income from contract manufacturing, transition services and other arrangements with the acquirer of the former Drug Delivery business following its 2020 divestiture. Items classified as revenue from this activity are included in Corporate and Unallocated net sales. Because Corporate and Unallocated includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Earnings per share computations | The computations for basic and diluted earnings per share follow: Earnings Per Share Computations Three months ended (Amounts in millions, except per share amounts) 2022 2021 Numerator: Net income attributable to 3M $ 1,299 $ 1,624 Denominator: Denominator for weighted average 3M common shares outstanding – basic 572.3 580.5 Dilution associated with the Company’s stock-based compensation plans 2.7 5.8 Denominator for weighted average 3M common shares outstanding – diluted 575.0 586.3 Earnings per share attributable to 3M common shareholders – basic $ 2.27 $ 2.80 Earnings per share attributable to 3M common shareholders – diluted $ 2.26 $ 2.77 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenue recognized during the period | The Company views the following disaggregated disclosures as useful to understanding the composition of revenue recognized during the respective reporting periods: Three months ended Net Sales (Millions) 2022 2021 Abrasives $ 329 $ 323 Automotive Aftermarket 295 294 Closure and Masking Systems 258 243 Electrical Markets 309 301 Industrial Adhesives and Tapes 621 598 Personal Safety 1,127 1,229 Roofing Granules 112 108 Other Safety and Industrial — 3 Total Safety and Industrial Business Segment 3,051 3,099 Advanced Materials 305 315 Automotive and Aerospace 460 488 Commercial Solutions 454 427 Electronics 923 951 Transportation Safety 198 215 Total Transportation and Electronics Business Segment 2,340 2,396 Food Safety 92 87 Health Information Systems 300 289 Medical Solutions 1,128 1,093 Oral Care 354 360 Separation and Purification Sciences 250 240 Total Health Care Business Group 2,124 2,069 Consumer Health and Safety 161 144 Home Care 274 272 Home Improvement 609 604 Stationery and Office 269 268 Other Consumer — 1 Total Consumer Business Group 1,313 1,289 Corporate and Unallocated 1 (2) Total Company $ 8,829 $ 8,851 Three months ended Net Sales (Millions) 2022 2021 Americas $ 4,438 $ 4,328 Asia Pacific 2,770 2,769 Europe, Middle East and Africa 1,621 1,755 Other Unallocated — (1) Worldwide $ 8,829 $ 8,851 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The goodwill balance by business segment as of December 31, 2021 and March 31, 2022, follow: Goodwill (Millions) Safety and Industrial Transportation and Health Care Consumer Total Company Balance as of December 31, 2021 $ 4,622 $ 1,825 $ 6,786 $ 253 $ 13,486 Translation and other (17) (12) (85) (4) (118) Balance as of March 31, 2022 $ 4,605 $ 1,813 $ 6,701 $ 249 $ 13,368 |
Schedule of acquired intangible assets | The carrying amount and accumulated amortization of acquired finite-lived intangible assets, in addition to the balance of non-amortizable intangible assets, as of March 31, 2022, and December 31, 2021, follow: (Millions) March 31, December 31, Customer related intangible assets $ 4,179 $ 4,216 Patents 510 513 Other technology-based intangible assets 2,105 2,111 Definite-lived tradenames 1,170 1,171 Other amortizable intangible assets 94 105 Total gross carrying amount 8,058 8,116 Accumulated amortization — customer related (1,653) (1,616) Accumulated amortization — patents (500) (500) Accumulated amortization — other technology-based (886) (839) Accumulated amortization — definite-lived tradenames (462) (447) Accumulated amortization — other (67) (79) Total accumulated amortization (3,568) (3,481) Total finite-lived intangible assets — net 4,490 4,635 Non-amortizable intangible assets (primarily tradenames) 651 653 Total intangible assets — net $ 5,141 $ 5,288 |
Schedule of amortization expense for acquired intangible assets | Amortization expense for the three months ended March 31, 2022 and 2021 follows: Three months ended (Millions) 2022 2021 Amortization expense $ 131 $ 133 |
Schedule of expected amortization expense for acquired amortizable intangible assets | Expected amortization expense for acquired amortizable intangible assets recorded as of March 31, 2022: (Millions) Remainder of 2022 2023 2024 2025 2026 2027 After 2027 Amortization expense $ 378 $ 483 $ 455 $ 425 $ 418 $ 391 $ 1,940 |
Restructuring Actions (Tables)
Restructuring Actions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring and related costs | The related restructuring charges for periods presented were recorded in the income statement as follows: Three months ended (Millions) 2022 2021 Cost of sales $ — $ 1 Selling, general and administrative expenses 12 9 Research, development and related expenses 6 4 Total operating income impact $ 18 $ 14 The business segment operating income impact of these restructuring charges is summarized as follows: Three months ended Employee-Related (Millions) 2022 2021 Safety and Industrial $ 2 $ 2 Transportation and Electronics 4 3 Health Care 2 1 Consumer 2 1 Corporate and Unallocated 8 7 Total Operating Expense $ 18 $ 14 |
Schedule of restructuring reserve by type of cost | Restructuring actions, including cash and non-cash impacts, follow: (Millions) Employee-Related Accrued restructuring action balance as of December 31, 2021 $ 87 Incremental expense incurred in the first quarter of 2022 18 Cash payments (53) Adjustments (8) Accrued restructuring action balances as of March 31, 2022 $ 44 |
Supplemental Income Statement_2
Supplemental Income Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of other expense (income), net | Other expense (income), net consists of the following: Three months ended (Millions) 2022 2021 Interest expense $ 113 $ 132 Interest income (8) (4) Pension and postretirement net periodic benefit cost (benefit) (67) (79) Total $ 38 $ 49 |
Supplemental Equity and Compr_2
Supplemental Equity and Comprehensive Income Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Consolidated statement of changes in equity | Consolidated Changes in Equity Three months ended March 31, 2022 3M Company Shareholders (Millions) Total Common Retained Treasury Accumulated Non- Balance at December 31, 2021 $ 15,117 $ 6,438 $ 45,821 $ (30,463) $ (6,750) $ 71 Net income 1,303 1,299 4 Other comprehensive income (loss), net of tax: Cumulative translation adjustment (171) (170) (1) Defined benefit pension and post-retirement plans adjustment 87 87 Cash flow hedging instruments (1) (1) Total other comprehensive income (loss), net of tax (85) Dividends declared (852) (852) Stock-based compensation 130 130 Reacquired stock (773) (773) Issuances pursuant to stock option and benefit plans 164 (212) 376 Balance at March 31, 2022 $ 15,004 $ 6,568 $ 46,056 $ (30,860) $ (6,834) $ 74 Three months ended March 31, 2021 3M Company Shareholders (Millions) Total Common Retained Treasury Accumulated Non- Balance at December 31, 2020 $ 12,931 $ 6,171 $ 43,821 $ (29,404) $ (7,721) $ 64 Net income 1,627 1,624 3 Other comprehensive income (loss), net of tax: Cumulative translation adjustment (222) (223) 1 Defined benefit pension and post-retirement plans adjustment 119 119 Cash flow hedging instruments 58 58 Total other comprehensive income (loss), net of tax (45) Dividends declared (858) (858) Stock-based compensation 121 121 Reacquired stock (243) (243) Issuances pursuant to stock option and benefit plans 295 (332) 627 Balance at March 31, 2021 $ 13,828 $ 6,292 $ 44,255 $ (29,020) $ (7,767) $ 68 |
Changes in accumulated other comprehensive income (loss) attributable to 3M | Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component Three months ended March 31, 2022 (Millions) Cumulative Defined Benefit Cash Flow Total Balance at December 31, 2021, net of tax: $ (1,943) $ (4,753) $ (54) $ (6,750) Other comprehensive income (loss), before tax: Amounts before reclassifications (150) — 6 (144) Amounts reclassified out — 115 (7) 108 Total other comprehensive income (loss), before tax (150) 115 (1) (36) Tax effect (20) (28) — (48) Total other comprehensive income (loss), net of tax (170) 87 (1) (84) Balance at March 31, 2022, net of tax: $ (2,113) $ (4,666) $ (55) $ (6,834) Three months ended March 31, 2021 (Millions) Cumulative Defined Benefit Cash Flow Total Balance at December 31, 2020, net of tax: $ (1,450) $ (6,098) $ (173) $ (7,721) Other comprehensive income (loss), before tax: Amounts before reclassifications (176) — 66 (110) Amounts reclassified out — 159 9 168 Total other comprehensive income (loss), before tax (176) 159 75 58 Tax effect (47) (40) (17) (104) Total other comprehensive income (loss), net of tax (223) 119 58 (46) Balance at March 31, 2021, net of tax: $ (1,673) $ (5,979) $ (115) $ (7,767) |
Reclassifications out of accumulated other comprehensive income | Reclassifications out of Accumulated Other Comprehensive Income Attributable to 3M Details about Accumulated Other Amount Reclassified from Location on Income Three months ended (Millions) 2022 2021 Defined benefit pension and postretirement plans adjustments Gains (losses) associated with defined benefit pension and postretirement plans amortization Transition asset $ — $ — Other (expense) income, net Prior service benefit 13 15 Other (expense) income, net Net actuarial loss (127) (173) Other (expense) income, net Curtailments/Settlements (1) (1) Other (expense) income, net Total before tax (115) (159) Tax effect 28 40 Provision for income taxes Net of tax (87) (119) Cash flow hedging instruments gains (losses) Foreign currency forward/option contracts 9 (7) Cost of sales Interest rate contracts (2) (2) Interest expense Total before tax 7 (9) Tax effect (2) 2 Provision for income taxes Net of tax 5 (7) Total reclassifications for the period, net of tax $ (82) $ (126) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Securities, Available-for-sale [Abstract] | |
Schedule of marketable securities | The following is a summary of amounts recorded on the Consolidated Balance Sheet for marketable securities (current and non-current). (Millions) March 31, December 31, Commercial paper $ 35 $ 109 Certificates of deposit/time deposits 24 14 U.S. treasury securities 50 75 U.S. municipal securities 3 3 Current marketable securities 112 201 U.S. municipal securities 27 27 Non-current marketable securities 27 27 Total marketable securities $ 139 $ 228 |
Schedule of marketable securities by contractual maturity | The balances at March 31, 2022 for marketable securities by contractual maturity are shown below. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. (Millions) March 31, Due in one year or less $ 112 Due after one year through five years 15 Due after five years through ten years 12 Total marketable securities $ 139 |
Long-Term Debt and Short-Term_2
Long-Term Debt and Short-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of maturities of long-term debt | The maturities of long-term debt for the periods subsequent to March 31, 2022 are as follows (in millions): Remainder of 2022 2023 2024 2025 2026 2027 After 2027 Total $ 723 $ 1,908 $ 1,100 $ 1,793 $ 1,468 $ 845 $ 8,836 $ 16,673 |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost (benefit) | The other components of net periodic benefit cost are reflected in other expense (income), net. Components of net periodic benefit cost and other supplemental information for the three months ended March 31, 2022 and 2021 follow: Benefit Plan Information Three months ended March 31, Qualified and Non-qualified Postretirement United States International (Millions) 2022 2021 2022 2021 2022 2021 Net periodic benefit cost (benefit) Operating expense Service cost $ 64 $ 72 $ 35 $ 42 $ 11 $ 12 Non-operating expense Interest cost 104 90 32 25 13 11 Expected return on plan assets (241) (264) (72) (81) (18) (19) Amortization of transition asset — — — — — — Amortization of prior service benefit (6) (6) — (1) (7) (8) Amortization of net actuarial loss 106 132 11 27 10 14 Settlements, curtailments, special termination benefits and other — — — — 1 1 Total non-operating expense (benefit) (37) (48) (29) (30) (1) (1) Total net periodic benefit cost (benefit) $ 27 $ 24 $ 6 $ 12 $ 10 $ 11 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gains (losses) on derivative instruments designated as hedges | The amount of pretax gain (loss) recognized in other comprehensive income related to derivative instruments designated as cash flow hedges is provided in the following table. Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative Three months ended (Millions) 2022 2021 Foreign currency forward/option contracts $ 6 $ 66 Interest rate contracts — — Total $ 6 $ 66 |
Gain (loss) on derivative instruments designated as fair value hedges | The following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges: (Millions) Carrying Value of the Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities Location on the Consolidated Balance Sheet March 31, December 31, March 31, December 31, Short-term borrowings and current portion of long-term debt $ — $ — $ — $ — Long-term debt 949 997 (52) (4) Total $ 949 $ 997 $ (52) $ (4) |
Gain (loss) on derivative and non-derivative instruments designated as net investment hedges | The amount of pretax gain (loss) recognized in other comprehensive income related to derivative and nonderivative instruments designated as net investment hedges are as follows. Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income Three months ended (Millions) 2022 2021 Foreign currency denominated debt $ 59 $ 167 Foreign currency forward contracts 2 2 Total $ 61 $ 169 |
Location in consolidated statement of income and pre-tax amounts recognized in income related to derivative instruments designated in cash flow or fair value hedging relationship | The location in the consolidated statement of income and pre-tax amounts recognized in income related to derivative instruments designated in cash flow or fair value hedging relationships and for derivatives not designated as hedging instruments are as follows: Location and Amount of Gain (Loss) Recognized in Income Three months ended March 31, Cost of sales Other expense (income), net (Millions) 2022 2021 2022 2021 Information regarding cash flow and fair value hedging relationships: Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of derivatives are recorded $ 4,826 $ 4,525 $ 38 $ 49 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 9 (7) — — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — — (2) (2) Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items — — 48 2 Derivatives designated as hedging instruments — — (48) (2) Information regarding derivatives not designated as hedging instruments: Gain or (loss) on derivatives not designated as instruments: Foreign currency forward/option contracts (20) — 25 22 |
Location and fair value of derivative instruments | The following tables summarize the fair value of 3M’s derivative instruments, excluding nonderivative instruments used as hedging instruments, and their location in the consolidated balance sheet. Notional amounts below are presented at period end foreign exchange rates, except for certain interest rate swaps, which are presented using the inception date’s foreign exchange rate. Gross Notional Amount Assets Liabilities (Millions) Location Fair Value Amount Location Fair Value Amount March 31, December 31, March 31, December 31, March 31, December 31, Derivatives designated as hedging instruments Foreign currency forward/option contracts 1,835 1,768 Other current assets $ 58 $ 54 Other current liabilities $ 25 $ 19 Foreign currency forward/option contracts 807 800 Other assets 41 41 Other liabilities 3 1 Interest rate contracts 800 800 Other assets — — Other liabilities 57 9 Total derivatives designated as hedging instruments 99 95 85 29 Derivatives not designated as hedging instruments Foreign currency forward/option contracts 4,465 3,731 Other current assets 13 24 Other current liabilities 27 4 Total derivatives not designated as hedging instruments 13 24 27 4 Total derivative instruments $ 112 $ 119 $ 112 $ 33 |
Offsetting assets | Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties Gross Amounts not Offset in the Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Recognized Derivative Liabilities Cash Net Amount of (Millions) March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, December 31, 2021 Derivatives subject to master netting agreements $ 112 $ 119 $ 40 $ 25 $ — $ — $ 72 $ 94 Derivatives not subject to master netting agreements — — — — Total $ 112 $ 119 $ 72 $ 94 |
Offsetting liabilities | Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties Gross Amounts not Offset in the Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Recognized Derivative Assets Cash Net Amount of (Millions) March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Derivatives subject to master netting agreements $ 110 $ 33 $ 40 $ 25 $ — $ — $ 70 $ 8 Derivatives not subject to master netting agreements 2 — 2 — Total $ 112 $ 33 $ 72 $ 8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair value, assets and liabilities measured on recurring basis | The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis. Fair Value at Fair Value Measurements Using Inputs Considered as Level 1 Level 2 Level 3 Description (Millions) March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Assets: Available-for-sale: Marketable securities: Commercial paper 35 109 — — 35 109 — — Certificates of deposit/time deposits 24 14 — — 24 14 — — U.S. treasury securities 50 75 50 75 — — — — U.S. municipal securities 30 30 — — — — 30 30 Derivative instruments — assets: Foreign currency forward/option contracts 112 119 — — 112 119 — — Liabilities: Derivative instruments — liabilities: Foreign currency forward/option contracts 55 24 — — 55 24 — — Interest rate contracts 57 9 — — 57 9 — — |
Fair value, assets measured on recurring basis, unobservable input reconciliation | The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis in the table above that used significant unobservable inputs (level 3). Marketable securities — certain U.S. municipal securities only Three months ended (Millions) 2022 2021 Beginning balance $ 30 $ 34 Total gains or losses: Included in earnings — — Included in other comprehensive income — — Purchases and issuances — — Sales and settlements — — Transfers in and/or out of level 3 — — Ending balance $ 30 $ 34 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 | Information with respect to the carrying amounts and estimated fair values of these financial instruments follow: March 31, 2022 December 31, 2021 (Millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, excluding current portion $ 14,801 $ 15,076 $ 16,056 $ 17,601 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation expense | Stock-Based Compensation Expense Three months ended (Millions) 2022 2021 Cost of sales $ 24 $ 22 Selling, general and administrative expenses 83 84 Research, development and related expenses 28 25 Stock-based compensation expenses 135 131 Income tax benefits (37) (51) Stock-based compensation expenses (benefits), net of tax $ 98 $ 80 |
Stock option activity | The following table summarizes stock option activity during the three months ended March 31, 2022: (Options in thousands) Number of Weighted Weighted Average Aggregate Under option — January 1 34,560 $ 163.52 Granted 3,776 162.39 Exercised (1,111) 95.04 Forfeited (156) 174.36 March 31 37,069 165.42 65 $ 191,760 Options exercisable March 31 29,505 $ 165.47 54 $ 191,760 |
Stock option assumptions | Stock Option Assumptions Annual 2022 Exercise price $ 162.41 Risk-free interest rate 1.9 % Dividend yield 2.9 % Expected volatility 21.8 % Expected life (months) 83 Black-Scholes fair value $ 25.34 |
Restricted stock and restricted stock units activity | The following table summarizes restricted stock and restricted stock unit activity during the three months ended March 31, 2022: (Shares in thousands) Number of Shares Weighted Average Nonvested balance — As of January 1 1,987 $ 175.96 Granted 1,024 162.18 Vested (497) 200.60 Forfeited (35) 167.51 As of March 31 2,479 165.44 |
Performance shares activity | The following table summarizes performance share activity during the three months ended March 31, 2022: (Shares in thousands) Number of Shares Weighted Average Grant Date Fair Value Undistributed balance — As of January 1 481 $ 175.12 Granted 264 144.75 Distributed (116) 207.49 Performance change (18) 221.38 Forfeited (13) 165.21 As of March 31 598 154.30 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Business segment information | Business Segment Information (Millions) Three months ended Net Sales 2022 2021 Safety and Industrial 3,051 3,099 Transportation and Electronics 2,340 2,396 Health Care 2,124 2,069 Consumer 1,313 1,289 Corporate and Unallocated 1 (2) Total Company 8,829 8,851 Operating Performance Safety and Industrial 636 752 Transportation and Electronics 496 556 Health Care 448 464 Consumer 224 269 Total business segment operating income 1,804 2,041 Corporate and Unallocated Corporate special items: Net costs for significant litigation (187) (70) Gain/(loss) on sale of businesses — — Other corporate expense - net 24 23 Total Corporate and Unallocated (163) (47) Total Company operating income 1,641 1,994 Other expense/(income), net 38 49 Income before income taxes 1,603 1,945 |
Significant Accounting Polici_4
Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings per share | ||
Options outstanding not included in computation of diluted earnings per share (in shares) | 23.1 | 8.7 |
Numerator: | ||
Net income attributable to 3M | $ 1,299 | $ 1,624 |
Denominator: | ||
Denominator for weighted average 3M common shares outstanding - basic (in shares) | 572.3 | 580.5 |
Dilution associated with the Company's stock-based compensation plans (in shares) | 2.7 | 5.8 |
Denominator for weighted average 3M common shares outstanding - diluted (in shares) | 575 | 586.3 |
Earnings per share attributable to 3M common shareholders - basic (in dollars per share) | $ 2.27 | $ 2.80 |
Earnings per share attributable to 3M common shareholders - diluted (in dollars per share) | $ 2.26 | $ 2.77 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Contract Balance | |||
Software license contracts term (in years) | 1 year | ||
Deferred revenue | $ 549 | $ 529 | |
Deferred income recognized as revenue | 200 | $ 180 | |
Operating lease revenue | $ 136 | $ 140 |
Revenue - Disaggregated Revenue
Revenue - Disaggregated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue | ||
Net Sales | $ 8,829 | $ 8,851 |
Corporate and Unallocated | ||
Disaggregation of Revenue | ||
Net Sales | 1 | (2) |
Net Sales | 1 | (2) |
Americas | ||
Disaggregation of Revenue | ||
Net Sales | 4,438 | 4,328 |
UNITED STATES | ||
Disaggregation of Revenue | ||
Net Sales | 3,600 | 3,600 |
Asia Pacific | ||
Disaggregation of Revenue | ||
Net Sales | 2,770 | 2,769 |
Europe, Middle East and Africa | ||
Disaggregation of Revenue | ||
Net Sales | 1,621 | 1,755 |
Other Unallocated | ||
Disaggregation of Revenue | ||
Net Sales | 0 | (1) |
Safety and Industrial | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 3,051 | 3,099 |
Net Sales | 3,051 | 3,099 |
Safety and Industrial | Abrasives | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 329 | 323 |
Safety and Industrial | Automotive Aftermarket | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 295 | 294 |
Safety and Industrial | Closure and Masking Systems | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 258 | 243 |
Safety and Industrial | Electrical Markets | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 309 | 301 |
Safety and Industrial | Industrial Adhesives and Tapes | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 621 | 598 |
Safety and Industrial | Personal Safety | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 1,127 | 1,229 |
Safety and Industrial | Roofing Granules | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 112 | 108 |
Safety and Industrial | Other Safety and Industrial | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 0 | 3 |
Transportation and Electronics | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 2,340 | 2,396 |
Net Sales | 2,340 | 2,396 |
Transportation and Electronics | Advanced Materials | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 305 | 315 |
Transportation and Electronics | Automotive and Aerospace | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 460 | 488 |
Transportation and Electronics | Commercial Solutions | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 454 | 427 |
Transportation and Electronics | Electronics | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 923 | 951 |
Transportation and Electronics | Transportation Safety | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 198 | 215 |
Health Care | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 2,124 | 2,069 |
Health Care | Food Safety | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 92 | 87 |
Health Care | Health Information Systems | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 300 | 289 |
Health Care | Medical Solutions | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 1,128 | 1,093 |
Health Care | Oral Care | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 354 | 360 |
Health Care | Separation and Purification Sciences | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 250 | 240 |
Consumer | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 1,313 | 1,289 |
Net Sales | 1,313 | 1,289 |
Consumer | Consumer Health and Safety | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 161 | 144 |
Consumer | Home Care | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 274 | 272 |
Consumer | Home Improvement | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 609 | 604 |
Consumer | Stationery and Office | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | 269 | 268 |
Consumer | Other Consumer | Operating Segments | ||
Disaggregation of Revenue | ||
Net Sales | $ 0 | $ 1 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Acquisitions (Details) | 3 Months Ended |
Mar. 31, 2022business | |
Business Combination and Asset Acquisition [Abstract] | |
Number of acquisitions | 0 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | |||
Proceeds from sale of businesses, net of cash sold | $ 13 | $ 0 | |
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Food Safety Division Business | |||
Business Acquisition [Line Items] | |||
Operating income of businesses held for sale | $ 30 | $ 30 | |
Forecast | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | |||
Business Acquisition [Line Items] | |||
Proceeds from sale of businesses, net of cash sold | $ 1,000 | ||
Forecast | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Shareholders Of Three M | |||
Business Acquisition [Line Items] | |||
Ownership interest after spinoff (as a percent) | 50.10% | ||
Forecast | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Food Safety Division Business | NEOGEN Corporation | |||
Business Acquisition [Line Items] | |||
Ownership interest after spinoff (as a percent) | 49.90% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill balance by business segment (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill Information | |
Goodwill acquired during period | $ 0 |
Goodwill | |
Balance at the beginning of the period | 13,486,000,000 |
Translation and other | (118,000,000) |
Balance at the end of the period | 13,368,000,000 |
Safety and Industrial | |
Goodwill | |
Balance at the beginning of the period | 4,622,000,000 |
Translation and other | (17,000,000) |
Balance at the end of the period | 4,605,000,000 |
Transportation and Electronics | |
Goodwill | |
Balance at the beginning of the period | 1,825,000,000 |
Translation and other | (12,000,000) |
Balance at the end of the period | 1,813,000,000 |
Health Care | |
Goodwill | |
Balance at the beginning of the period | 6,786,000,000 |
Translation and other | (85,000,000) |
Balance at the end of the period | 6,701,000,000 |
Consumer | |
Goodwill | |
Balance at the beginning of the period | 253,000,000 |
Translation and other | (4,000,000) |
Balance at the end of the period | $ 249,000,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Acquired Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Acquired intangible assets disclosures | ||
Total gross carrying amount | $ 8,058 | $ 8,116 |
Total accumulated amortization | (3,568) | (3,481) |
Total finite-lived intangible assets — net | 4,490 | 4,635 |
Non-amortizable intangible assets (primarily tradenames) | 651 | 653 |
Total intangible assets — net | $ 5,141 | 5,288 |
Minimum | ||
Acquired intangible assets disclosures | ||
Indefinite lived tradenames years in existence (in years) | 60 years | |
Customer related intangible assets | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | $ 4,179 | 4,216 |
Total accumulated amortization | (1,653) | (1,616) |
Patents | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | 510 | 513 |
Total accumulated amortization | (500) | (500) |
Other technology-based intangible assets | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | 2,105 | 2,111 |
Total accumulated amortization | (886) | (839) |
Definite-lived tradenames | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | 1,170 | 1,171 |
Total accumulated amortization | (462) | (447) |
Other amortizable intangible assets | ||
Acquired intangible assets disclosures | ||
Total gross carrying amount | 94 | 105 |
Total accumulated amortization | $ (67) | $ (79) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedules for Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 131 | $ 133 |
Expected amortization expense for acquired intangible assets recorded as of balance sheet date | ||
Remainder of 2022 | 378 | |
2023 | 483 | |
2024 | 455 | |
2025 | 425 | |
2026 | 418 | |
2027 | 391 | |
After 2027 | $ 1,940 |
Restructuring Actions (Details)
Restructuring Actions (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)position | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Restructuring Cost and Reserve | |||
Restructuring charges | $ 18 | ||
Operational/Marketing Capability Restructuring | |||
Restructuring Cost and Reserve | |||
Restructuring charges | $ 18 | $ 14 | $ 124 |
Restructuring and related cost, expected number of positions affected | position | 3,100 | ||
Expected charges | $ 280 | ||
Operational/Marketing Capability Restructuring | Employee Severance | |||
Restructuring Cost and Reserve | |||
Restructuring charges | 18 | 14 | |
Operational/Marketing Capability Restructuring | Employee Severance | Corporate and Unallocated | |||
Restructuring Cost and Reserve | |||
Restructuring charges | 8 | 7 | |
Safety and Industrial | Operational/Marketing Capability Restructuring | Employee Severance | Operating Segments | |||
Restructuring Cost and Reserve | |||
Restructuring charges | 2 | 2 | |
Transportation and Electronics | Operational/Marketing Capability Restructuring | Employee Severance | Operating Segments | |||
Restructuring Cost and Reserve | |||
Restructuring charges | 4 | 3 | |
Health Care | Operational/Marketing Capability Restructuring | Employee Severance | Operating Segments | |||
Restructuring Cost and Reserve | |||
Restructuring charges | 2 | 1 | |
Consumer | Operational/Marketing Capability Restructuring | Employee Severance | Operating Segments | |||
Restructuring Cost and Reserve | |||
Restructuring charges | 2 | 1 | |
Cost of sales | Operational/Marketing Capability Restructuring | |||
Restructuring Cost and Reserve | |||
Restructuring charges | 0 | 1 | |
Selling, general and administrative expenses | Operational/Marketing Capability Restructuring | |||
Restructuring Cost and Reserve | |||
Restructuring charges | 12 | 9 | |
Research, development and related expenses | Operational/Marketing Capability Restructuring | |||
Restructuring Cost and Reserve | |||
Restructuring charges | $ 6 | $ 4 |
Restructuring Actions - Roll Fo
Restructuring Actions - Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Restructuring Reserve Roll Forward | |||
Incremental expense incurred | $ 18 | ||
Operational/Marketing Capability Restructuring | |||
Restructuring Reserve Roll Forward | |||
Incremental expense incurred | 18 | $ 14 | $ 124 |
Employee Severance | Operational/Marketing Capability Restructuring | |||
Restructuring Reserve Roll Forward | |||
Accrued restructuring action balances, beginning balance | 87 | ||
Incremental expense incurred | 18 | $ 14 | |
Cash payments | (53) | ||
Adjustments | (8) | ||
Accrued restructuring actions balances, ending balance | $ 44 | $ 87 |
Supplemental Income Statement_3
Supplemental Income Statement Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
Interest expense | $ 113 | $ 132 |
Interest income | (8) | (4) |
Pension and postretirement net periodic benefit cost (benefit) | (67) | (79) |
Total | $ 38 | 49 |
Fixed rate medium term note due 2022 | ||
Debt instrument | ||
Loss on extinguishment of debt | $ 11 |
Supplemental Equity and Compr_3
Supplemental Equity and Comprehensive Income Information - Dividends (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | ||
Dividends declared in period (in dollars per share) | $ 1.49 | $ 1.48 |
Supplemental Equity and Compr_4
Supplemental Equity and Comprehensive Income Information - SE Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Increase (decrease) in equity | ||
Balance at the beginning of the period | $ 15,117 | $ 12,931 |
Net income | 1,303 | 1,627 |
Other comprehensive income (loss), net of tax: | ||
Cumulative translation adjustment | (171) | (222) |
Defined benefit pension and postretirement plans adjustment | 87 | 119 |
Cash flow hedging instruments | (1) | 58 |
Total other comprehensive income (loss), net of tax | (85) | (45) |
Dividends declared | (852) | (858) |
Stock-based compensation | 130 | 121 |
Reacquired stock | (773) | (243) |
Issuances pursuant to stock option and benefit plans | 164 | 295 |
Balance at the end of the period | 15,004 | 13,828 |
Common Stock and Additional Paid-in Capital | ||
Increase (decrease) in equity | ||
Balance at the beginning of the period | 6,438 | 6,171 |
Other comprehensive income (loss), net of tax: | ||
Stock-based compensation | 130 | 121 |
Balance at the end of the period | 6,568 | 6,292 |
Retained Earnings | ||
Increase (decrease) in equity | ||
Balance at the beginning of the period | 45,821 | 43,821 |
Net income | 1,299 | 1,624 |
Other comprehensive income (loss), net of tax: | ||
Dividends declared | (852) | (858) |
Issuances pursuant to stock option and benefit plans | (212) | (332) |
Balance at the end of the period | 46,056 | 44,255 |
Treasury Stock | ||
Increase (decrease) in equity | ||
Balance at the beginning of the period | (30,463) | (29,404) |
Other comprehensive income (loss), net of tax: | ||
Reacquired stock | (773) | (243) |
Issuances pursuant to stock option and benefit plans | 376 | 627 |
Balance at the end of the period | (30,860) | (29,020) |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (decrease) in equity | ||
Balance at the beginning of the period | (6,750) | (7,721) |
Other comprehensive income (loss), net of tax: | ||
Cumulative translation adjustment | (170) | (223) |
Defined benefit pension and postretirement plans adjustment | 87 | 119 |
Cash flow hedging instruments | (1) | 58 |
Total other comprehensive income (loss), net of tax | (84) | (46) |
Balance at the end of the period | (6,834) | (7,767) |
Non- controlling Interest | ||
Increase (decrease) in equity | ||
Balance at the beginning of the period | 71 | 64 |
Net income | 4 | 3 |
Other comprehensive income (loss), net of tax: | ||
Cumulative translation adjustment | (1) | 1 |
Balance at the end of the period | $ 74 | $ 68 |
Supplemental Equity and Compr_5
Supplemental Equity and Comprehensive Income Information - AOCI Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to 3M, Net of Tax Roll Forward | ||
Balance at the beginning of the period | $ 15,117 | $ 12,931 |
Other comprehensive income (loss), before tax: | ||
Total other comprehensive income (loss), net of tax | (85) | (45) |
Balance at the end of the period | 15,004 | 13,828 |
Total Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to 3M, Net of Tax Roll Forward | ||
Balance at the beginning of the period | (6,750) | (7,721) |
Other comprehensive income (loss), before tax: | ||
Amounts before reclassifications | (144) | (110) |
Amounts reclassified out | 108 | 168 |
Total other comprehensive income (loss), before tax | (36) | 58 |
Tax effect | (48) | (104) |
Total other comprehensive income (loss), net of tax | (84) | (46) |
Balance at the end of the period | (6,834) | (7,767) |
Cumulative Translation Adjustment | ||
AOCI Attributable to 3M, Net of Tax Roll Forward | ||
Balance at the beginning of the period | (1,943) | (1,450) |
Other comprehensive income (loss), before tax: | ||
Amounts before reclassifications | (150) | (176) |
Total other comprehensive income (loss), before tax | (150) | (176) |
Tax effect | (20) | (47) |
Total other comprehensive income (loss), net of tax | (170) | (223) |
Balance at the end of the period | (2,113) | (1,673) |
Defined Benefit Pension and Postretirement Plans Adjustment | ||
AOCI Attributable to 3M, Net of Tax Roll Forward | ||
Balance at the beginning of the period | (4,753) | (6,098) |
Other comprehensive income (loss), before tax: | ||
Amounts reclassified out | 115 | 159 |
Total other comprehensive income (loss), before tax | 115 | 159 |
Tax effect | (28) | (40) |
Total other comprehensive income (loss), net of tax | 87 | 119 |
Balance at the end of the period | (4,666) | (5,979) |
Cash Flow Hedging Instruments, Unrealized Gain (Loss) | ||
AOCI Attributable to 3M, Net of Tax Roll Forward | ||
Balance at the beginning of the period | (54) | (173) |
Other comprehensive income (loss), before tax: | ||
Amounts before reclassifications | 6 | 66 |
Amounts reclassified out | (7) | 9 |
Total other comprehensive income (loss), before tax | (1) | 75 |
Tax effect | 0 | (17) |
Total other comprehensive income (loss), net of tax | (1) | 58 |
Balance at the end of the period | $ (55) | $ (115) |
Supplemental Equity and Compr_6
Supplemental Equity and Comprehensive Income Information - Reclassifications out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Other expense (income), net | $ (38) | $ (49) |
Total before tax | 1,603 | 1,945 |
Tax effect | 302 | 319 |
Net income | 1,303 | 1,627 |
Cost of sales | 4,826 | 4,525 |
Net income attributable to 3M | 1,299 | 1,624 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Net income attributable to 3M | (82) | (126) |
Defined benefit pension and postretirement plans adjustments | Reclassification out of Accumulated Other Comprehensive Income | ||
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Total before tax | (115) | (159) |
Tax effect | 28 | 40 |
Net income | (87) | (119) |
Transition asset | Reclassification out of Accumulated Other Comprehensive Income | ||
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Other expense (income), net | 0 | 0 |
Prior service benefit | Reclassification out of Accumulated Other Comprehensive Income | ||
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Other expense (income), net | 13 | 15 |
Net actuarial loss | Reclassification out of Accumulated Other Comprehensive Income | ||
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Other expense (income), net | (127) | (173) |
Curtailments/Settlements | Reclassification out of Accumulated Other Comprehensive Income | ||
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Other expense (income), net | (1) | (1) |
Cash flow hedging instruments gains (losses) | Reclassification out of Accumulated Other Comprehensive Income | ||
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Other expense (income), net | (2) | (2) |
Total before tax | 7 | (9) |
Tax effect | (2) | 2 |
Net income | 5 | (7) |
Cost of sales | $ 9 | $ (7) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate (as a percent) | 18.80% | 16.40% | |
Effective tax rate, increase (decrease) from comparative period (as a percent) | 2.40% | ||
Unrecognized tax benefits that would affect the effective tax rate | $ 1,150 | $ 1,112 | |
Deferred tax assets valuation allowance | $ 141 | $ 142 |
Marketable Securities - Current
Marketable Securities - Current and Non-current (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale | ||
Current marketable securities | $ 112 | $ 201 |
Non-current marketable securities | 27 | 27 |
Total marketable securities | 139 | 228 |
Commercial paper | ||
Debt Securities, Available-for-sale | ||
Current marketable securities | 35 | 109 |
Certificates of deposit/time deposits | ||
Debt Securities, Available-for-sale | ||
Current marketable securities | 24 | 14 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale | ||
Current marketable securities | 50 | 75 |
U.S. municipal securities | ||
Debt Securities, Available-for-sale | ||
Current marketable securities | 3 | 3 |
Non-current marketable securities | $ 27 | $ 27 |
Marketable Securities - Contrac
Marketable Securities - Contractual maturity (Details) $ in Millions | Mar. 31, 2022USD ($) |
Marketable securities by contractual maturity | |
Due in one year or less | $ 112 |
Due after one year through five years | 15 |
Due after five years through ten years | 12 |
Total marketable securities | $ 139 |
Long-Term Debt and Short-Term_3
Long-Term Debt and Short-Term Borrowings - Short-Term Borrowings (Details) € in Millions | 1 Months Ended | ||
Feb. 28, 2022EUR (€) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | |
Commercial paper | |||
Short-term debt | |||
Commercial paper outstanding | $ | $ 0 | $ 0 | |
Fixed Rate Eurobond Due2021 | |||
Short-term debt | |||
Debt redeemed | € | € 500 |
Long-Term Debt and Short-Term_4
Long-Term Debt and Short-Term Borrowings - Future Maturities of Long-term Debt (Details) $ in Millions | Mar. 31, 2022USD ($) |
Maturities of long-term debt | |
Remainder of 2022 | $ 723 |
2023 | 1,908 |
2024 | 1,100 |
2025 | 1,793 |
2026 | 1,468 |
2027 | 845 |
After 2027 | 8,836 |
Total | $ 16,673 |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Plans - Components of net periodic benefit cost and other information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Non-operating expense | ||
Total net periodic benefit cost (benefit) | $ (67) | $ (79) |
Postretirement Benefits | ||
Operating expense | ||
Service cost | 11 | 12 |
Non-operating expense | ||
Interest cost | 13 | 11 |
Expected return on plan assets | (18) | (19) |
Amortization of transition asset | 0 | 0 |
Amortization of prior service benefit | (7) | (8) |
Amortization of net actuarial loss | 10 | 14 |
Settlements, curtailments, special termination benefits and other | 1 | 1 |
Total non-operating expense (benefit) | (1) | (1) |
Total net periodic benefit cost (benefit) | 10 | 11 |
UNITED STATES | Qualified and Non-qualified Pension Benefits | ||
Operating expense | ||
Service cost | 64 | 72 |
Non-operating expense | ||
Interest cost | 104 | 90 |
Expected return on plan assets | (241) | (264) |
Amortization of transition asset | 0 | 0 |
Amortization of prior service benefit | (6) | (6) |
Amortization of net actuarial loss | 106 | 132 |
Settlements, curtailments, special termination benefits and other | 0 | 0 |
Total non-operating expense (benefit) | (37) | (48) |
Total net periodic benefit cost (benefit) | 27 | 24 |
International | Qualified and Non-qualified Pension Benefits | ||
Operating expense | ||
Service cost | 35 | 42 |
Non-operating expense | ||
Interest cost | 32 | 25 |
Expected return on plan assets | (72) | (81) |
Amortization of transition asset | 0 | 0 |
Amortization of prior service benefit | 0 | (1) |
Amortization of net actuarial loss | 11 | 27 |
Settlements, curtailments, special termination benefits and other | 0 | 0 |
Total non-operating expense (benefit) | (29) | (30) |
Total net periodic benefit cost (benefit) | $ 6 | $ 12 |
Pension and Postretirement Be_4
Pension and Postretirement Benefit Plans - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Qualified and Non-qualified Pension Benefits | |
Benefit Plan Information | |
Company contributions year to date | $ 41 |
Postretirement Benefits | |
Benefit Plan Information | |
Company contributions year to date | 1 |
Pension and Postretirement Benefit Plans | Minimum | |
Benefit Plan Information | |
Estimated pension and postretirement employer contributions in current fiscal year | 100 |
Pension and Postretirement Benefit Plans | Maximum | |
Benefit Plan Information | |
Estimated pension and postretirement employer contributions in current fiscal year | $ 200 |
Derivatives - Cash Flow Hedges
Derivatives - Cash Flow Hedges (Details) - Cash flow hedge $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Derivatives in Cash Flow Hedging Relationships | |
Accumulated other comprehensive income (loss), unrealized gain (loss) on cash flow hedges | $ (55) |
After-tax net unrealized gain (loss) anticipated to be reclassified from AOCI to the income statement within next twelve months | 19 |
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 | $ (98) |
Derivatives - Cash Flow Hedge_2
Derivatives - Cash Flow Hedges - Gain (Loss) in OCI or Reclassified from AOCI (Details) - Cash flow hedge - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivatives in Cash Flow Hedging Relationships | ||
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative | $ 6 | $ 66 |
Foreign currency forward/option contracts | ||
Derivatives in Cash Flow Hedging Relationships | ||
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative | 6 | 66 |
Interest rate contracts | ||
Derivatives in Cash Flow Hedging Relationships | ||
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative | $ 0 | $ 0 |
Derivatives - Cumulative Basis
Derivatives - Cumulative Basis Adjustment for Fair Value Hedges (Details) - Fair value hedges - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives | ||
Carrying Value of the Hedged Liabilities | $ 949 | $ 997 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities | (52) | (4) |
Short-term borrowings and current portion of long-term debt | ||
Derivatives | ||
Carrying Value of the Hedged Liabilities | 0 | 0 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities | 0 | 0 |
Long-term debt | ||
Derivatives | ||
Carrying Value of the Hedged Liabilities | 949 | 997 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities | $ (52) | $ (4) |
Derivatives - Net Investment He
Derivatives - Net Investment Hedges (Details) - Net Investment Hedges € in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022EUR (€) | |
Net investment hedges | |||
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income | $ 61 | $ 169 | |
Foreign currency forward contracts | |||
Net investment hedges | |||
Derivative notional amount | € | € 150 | ||
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income | 2 | 2 | |
Foreign currency denominated debt | |||
Net investment hedges | |||
Face amount of debt designated as a net investment hedge (in euros) | € | € 2,400 | ||
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income | $ 59 | $ 167 |
Derivatives - Statement of Inco
Derivatives - Statement of Income Location and Impact of Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
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 derivatives are recorded | $ 4,826 | $ 4,525 |
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 derivatives are recorded | 38 | 49 |
Foreign currency forward/option contracts | Derivatives not designated as hedging instruments | Cost of sales | ||
Gain or (loss) on derivatives not designated as instruments: | ||
Derivatives not designated as hedging instruments | (20) | 0 |
Foreign currency forward/option contracts | Derivatives not designated as hedging instruments | Other expense (income), net | ||
Gain or (loss) on derivatives not designated as instruments: | ||
Derivatives not designated as hedging instruments | 25 | 22 |
Cash flow hedge | Foreign currency forward/option contracts | Cost of sales | ||
Gain or (loss) on cash flow hedging relationships: | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 9 | (7) |
Cash flow hedge | Foreign currency forward/option contracts | Other expense (income), net | ||
Gain or (loss) on cash flow hedging relationships: | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 0 | 0 |
Cash flow hedge | Interest rate contracts | Cost of sales | ||
Gain or (loss) on cash flow hedging relationships: | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 0 | 0 |
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 | (2) | (2) |
Fair value hedges | Interest rate contracts | Cost of sales | ||
Gain or (loss) on fair value hedging relationships: | ||
Hedged items | 0 | 0 |
Fair value hedges | Interest rate contracts | Other expense (income), net | ||
Gain or (loss) on fair value hedging relationships: | ||
Hedged items | 48 | 2 |
Fair value hedges | Interest rate contracts | Derivatives designated as hedging instruments | Cost of sales | ||
Gain or (loss) on fair value hedging relationships: | ||
Derivatives designated as hedging instruments | 0 | 0 |
Fair value hedges | Interest rate contracts | Derivatives designated as hedging instruments | Other expense (income), net | ||
Gain or (loss) on fair value hedging relationships: | ||
Derivatives designated as hedging instruments | $ (48) | $ (2) |
Derivatives - BS Location (Deta
Derivatives - BS Location (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Location and Fair Value Amount of Derivative Instruments | ||
Derivative assets, fair value | $ 112 | $ 119 |
Derivative liability, fair value | 112 | 33 |
Derivatives designated as hedging instruments | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative assets, fair value | 99 | 95 |
Derivative liability, fair value | 85 | 29 |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Current balance sheet location | ||
Location and Fair Value Amount of Derivative Instruments | ||
Gross Notional Amount | 1,835 | 1,768 |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Noncurrent balance sheet location | ||
Location and Fair Value Amount of Derivative Instruments | ||
Gross Notional Amount | 807 | 800 |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Other current assets | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative assets, fair value | 58 | 54 |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Other assets | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative assets, fair value | 41 | 41 |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Other current liabilities | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative liability, fair value | 25 | 19 |
Derivatives designated as hedging instruments | Foreign currency forward/option contracts | Other liabilities | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative liability, fair value | 3 | 1 |
Derivatives designated as hedging instruments | Interest rate contracts | Noncurrent balance sheet location | ||
Location and Fair Value Amount of Derivative Instruments | ||
Gross Notional Amount | 800 | 800 |
Derivatives designated as hedging instruments | Interest rate contracts | Other assets | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative assets, fair value | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Other liabilities | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative liability, fair value | 57 | 9 |
Derivatives not designated as hedging instruments | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative assets, fair value | 13 | 24 |
Derivative liability, fair value | 27 | 4 |
Derivatives not designated as hedging instruments | Foreign currency forward/option contracts | Current balance sheet location | ||
Location and Fair Value Amount of Derivative Instruments | ||
Gross Notional Amount | 4,465 | 3,731 |
Derivatives not designated as hedging instruments | Foreign currency forward/option contracts | Other current assets | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative assets, fair value | 13 | 24 |
Derivatives not designated as hedging instruments | Foreign currency forward/option contracts | Other current liabilities | ||
Location and Fair Value Amount of Derivative Instruments | ||
Derivative liability, fair value | $ 27 | $ 4 |
Derivatives - Offsetting Assets
Derivatives - Offsetting Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Offsetting | ||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | $ 112 | $ 119 |
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | 40 | 25 |
Cash Collateral Received | 0 | 0 |
Net Amount of Derivative Assets | 72 | 94 |
Derivatives not subject to master netting agreements | 0 | 0 |
Derivative asset, not subject to master netting arrangement, deduction | 0 | 0 |
Gross amount of derivative assets presented in the consolidated balance sheet, including not subject to master netting arrangement | 112 | 119 |
Net amount of derivative assets, including not subject to master netting arrangement | $ 72 | $ 94 |
Derivatives - Offsetting Liabil
Derivatives - Offsetting Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Offsetting | ||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | $ 110 | $ 33 |
Gross Amount of Eligible Offsetting Recognized Derivative Assets | 40 | 25 |
Cash Collateral Received | 0 | 0 |
Net Amount of Derivative Assets | 70 | 8 |
Derivatives not subject to master netting agreements | 2 | 0 |
Derivative liability, not subject to master netting arrangement deduction | 2 | 0 |
Gross amount of derivative liabilities presented in consolidated balance sheet including not subject to master netting arrangement | 112 | 33 |
Net amount of derivative liabilities, including not subject to master netting arrangements | $ 72 | $ 8 |
Derivatives - Currency Effects
Derivatives - Currency Effects (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Foreign Currency [Abstract] | ||
Year-on-year foreign currency transaction effects, including hedging impact, gain (loss) impact on pre-tax income | $ 17 | $ (10) |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | $ 139 | $ 228 |
Derivative assets, fair value | 112 | 119 |
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | 110 | 33 |
Fair value on a recurring basis | Foreign currency forward/option contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative assets, fair value | 112 | 119 |
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | 55 | 24 |
Fair value on a recurring basis | Interest rate contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | 57 | 9 |
Fair value on a recurring basis | Commercial paper | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 35 | 109 |
Fair value on a recurring basis | Certificates of deposit/time deposits | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 24 | 14 |
Fair value on a recurring basis | U.S. treasury securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 50 | 75 |
Fair value on a recurring basis | U.S. municipal securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 30 | 30 |
Fair value on a recurring basis | Level 1 | Foreign currency forward/option contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative assets, fair value | 0 | 0 |
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | 0 | 0 |
Fair value on a recurring basis | Level 1 | Interest rate contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | 0 | 0 |
Fair value on a recurring basis | Level 1 | Commercial paper | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 1 | Certificates of deposit/time deposits | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 1 | U.S. treasury securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 50 | 75 |
Fair value on a recurring basis | Level 1 | U.S. municipal securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 2 | Foreign currency forward/option contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative assets, fair value | 112 | 119 |
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | 55 | 24 |
Fair value on a recurring basis | Level 2 | Interest rate contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | 57 | 9 |
Fair value on a recurring basis | Level 2 | Commercial paper | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 35 | 109 |
Fair value on a recurring basis | Level 2 | Certificates of deposit/time deposits | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 24 | 14 |
Fair value on a recurring basis | Level 2 | U.S. treasury securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 2 | U.S. municipal securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 3 | Foreign currency forward/option contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Derivative assets, fair value | 0 | 0 |
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | 0 | 0 |
Fair value on a recurring basis | Level 3 | Interest rate contracts | ||
Assets and Liabilities Measured on Recurring Basis | ||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | 0 | 0 |
Fair value on a recurring basis | Level 3 | Commercial paper | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 3 | Certificates of deposit/time deposits | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 3 | U.S. treasury securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Fair value on a recurring basis | Level 3 | U.S. municipal securities | ||
Assets and Liabilities Measured on Recurring Basis | ||
Available-for-sale marketable securities | $ 30 | $ 30 |
Fair Value Measurements - Rec_2
Fair Value Measurements - Recurring Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
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 | $ 30 | $ 34 |
Total gains or losses included in earnings | 0 | 0 |
Total gains or losses included in other comprehensive income | 0 | 0 |
Purchases and issuances | 0 | 0 |
Sales and settlements | 0 | 0 |
Transfers in and/or out of level 3 | 0 | 0 |
Balance at the end of the period | 30 | 34 |
Change in unrealized gains or losses for the period included in earnings for securities held at the end of the reporting period | $ 0 | $ 0 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Basis (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair value on a nonrecurring basis | ||
Assets and Liabilities Measured on Recurring or Nonrecurring Basis | ||
Long-lived asset impairment charges | $ 0 | $ 0 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Carrying Value | ||
Financial Instruments | ||
Long-term debt, excluding current portion | $ 14,801 | $ 16,056 |
Fair Value | ||
Financial Instruments | ||
Long-term debt, excluding current portion | $ 15,076 | $ 17,601 |
Commitments and Contingencies -
Commitments and Contingencies - Respirator (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2018USD ($)plaintiff | Apr. 30, 2019USD ($) | Mar. 31, 2022USD ($)partycaseplaintiff | Dec. 31, 2021plaintiff | Dec. 31, 2018lawsuit | |
Respirator Mask/Asbestos Litigation | |||||
Loss contingencies | |||||
Total number of named claimants | plaintiff | 4,012 | 3,876 | |||
Number of years company has been the defendant in Respirator Mask/Asbestos Litigation | 20 years | ||||
Number of total claims the Company prevailed after being taken to trial | 15 | 2 | |||
Number of total claims taken to trial | case | 16 | ||||
Accrued loss contingency reserve | $ 626,000,000 | ||||
Increase (decrease) accrued loss contingency reserve | 14,000,000 | ||||
Payments for fees and settlements related to litigation | 28,000,000 | ||||
Insurance receivables | $ 4,000,000 | ||||
Respirator Mask/Asbestos Litigation | State court of California | |||||
Loss contingencies | |||||
Number of total claims the Company prevailed after being taken to trial | lawsuit | 1 | ||||
Respirator Mask/Asbestos Litigation | State court of Kentucky | |||||
Loss contingencies | |||||
Number of unnamed defendant | plaintiff | 2 | ||||
Litigation settlement awarded | $ 2,000,000 | ||||
Amount of punitive damages awarded | $ 63,000,000 | ||||
Respirator Mask/Asbestos Litigation | Kentucky and West Virginia | |||||
Loss contingencies | |||||
Settlement amount paid | $ 340,000,000 | ||||
Respirator Mask/Asbestos Litigation - State of West Virginia | |||||
Loss contingencies | |||||
Number of additional defendants | party | 2 | ||||
Accrued loss contingency reserve | $ 0 | ||||
Respirator Mask/Asbestos Litigation - Aearo Technologies | |||||
Loss contingencies | |||||
Accrued loss contingency reserve | 41,000,000 | ||||
Quarterly fee paid to Cabot to retain responsibility and liability for products manufactured before July 11, 1995 | $ 100,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Environmental (Details) € in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||
Feb. 28, 2022USD ($) | Dec. 31, 2021USD ($)case | Nov. 30, 2021USD ($)lawsuit | Oct. 31, 2021lawsuitbill | Sep. 30, 2021EUR (€)party | Jul. 31, 2021lawsuit | May 31, 2021individual | Feb. 28, 2021lawsuit | Sep. 30, 2020option | Aug. 31, 2020lawsuit | Jun. 30, 2020lawsuit | Apr. 30, 2020subsidiary | Jul. 31, 2019landfill | Jun. 30, 2019lawsuitparty | May 31, 2019lawsuitparty | Apr. 30, 2019USD ($) | Mar. 31, 2019facilitylawsuit | Jul. 31, 2018USD ($)facilitydefendantchemicalmi | Feb. 28, 2018USD ($) | Aug. 31, 2016individual | Oct. 31, 2015water_work | Mar. 31, 2022USD ($)lawsuitperfluorinated_materialindividualcase | Mar. 31, 2018USD ($) | Sep. 30, 2022lawsuit | Mar. 31, 2022EUR (€)lawsuit | |
Zwijndrecht Site | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Investment plan for environmental remediation | € | € 125 | € 150 | |||||||||||||||||||||||
Investment plan for environmental remediation, period (in years) | 3 years | ||||||||||||||||||||||||
City of Decatur, Decatur Utilities, and Morgan County | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Investment plan for environmental remediation | $ | $ 99,000,000 | ||||||||||||||||||||||||
City Of Guin Water Works And Sewer Board | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Investment plan for environmental remediation | $ | $ 30,000,000 | ||||||||||||||||||||||||
Environmental Matters - Remediation | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Accrued loss contingency reserve | $ | $ 32,000,000 | ||||||||||||||||||||||||
Number of years remediation payments expected to be paid for applicable sites | 20 years | ||||||||||||||||||||||||
Environmental Matters - Other | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Accrued loss contingency reserve | $ | $ 0 | ||||||||||||||||||||||||
Insurance receivables | $ | $ 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 | ||||||||||||||||||||||||
Environmental Matters - Regulatory Activities | California | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of bills signed into law that prohibit use of PFAS in children's products and food packaging | bill | 2 | ||||||||||||||||||||||||
Environmental Matters - Litigation | U.S. District Court for the Northern District of Alabama | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of additional plaintiffs | individual | 42 | ||||||||||||||||||||||||
Environmental Matters - Litigation | Alabama | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of local water works for whom the water authority supplies water | water_work | 5 | ||||||||||||||||||||||||
Litigation settlement awarded | $ | $ 35,000,000 | ||||||||||||||||||||||||
Environmental Matters - Litigation | Decatur, Alabama | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of putative class action and other lawsuits | 2 | ||||||||||||||||||||||||
Number of closed municipal landfills | landfill | 3 | ||||||||||||||||||||||||
Environmental Matters - Litigation | Minnesota | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Litigation settlement awarded | $ | $ 897,000,000 | ||||||||||||||||||||||||
Settlement amount paid | $ | $ 850,000,000 | ||||||||||||||||||||||||
Number of recommended options for utilizing the Water Quality and Sustainability Fund seeking public comment | option | 3 | ||||||||||||||||||||||||
Environmental Matters - Litigation | New Jersey | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of lawsuits filed | 2 | 2 | |||||||||||||||||||||||
Number of additional new claims filed | 2 | ||||||||||||||||||||||||
Number of additional defendants | party | 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 plaintiffs | individual | 4,500 | ||||||||||||||||||||||||
Environmental Matters - Litigation | State Court of Lawrence County, Alabama | Minimum | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of plaintiffs | individual | 200 | ||||||||||||||||||||||||
Environmental Matters - Litigation | New Hampshire | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of lawsuits filed | 2 | ||||||||||||||||||||||||
Number of additional defendants | party | 7 | ||||||||||||||||||||||||
Environmental Matters - Litigation | Vermont | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of lawsuits filed | 2 | ||||||||||||||||||||||||
Number of additional defendants | party | 10 | ||||||||||||||||||||||||
Environmental Matters - Litigation | ALASKA | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of lawsuits filed | 2 | ||||||||||||||||||||||||
Environmental Matters - Litigation | NORTH CAROLINA | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of lawsuits filed | 4 | ||||||||||||||||||||||||
Environmental Matters - Aqueous Film Forming Foam Litigation | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of putative class action and other lawsuits | 2,195 | ||||||||||||||||||||||||
Number of class action lawsuits | 32 | ||||||||||||||||||||||||
Environmental Matters - Aqueous Film Forming Foam Litigation | U.S. Judicial Panel on Multidistrict Litigation (MDL) | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of water supplier cases | 10 | ||||||||||||||||||||||||
Number of water supplier cases selected | 3 | ||||||||||||||||||||||||
Environmental Matters - Aqueous Film Forming Foam Litigation | Various state courts | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of lawsuits filed | 8 | ||||||||||||||||||||||||
Number of lawsuits pending | 5 | 5 | |||||||||||||||||||||||
Number of lawsuits served | 19 | ||||||||||||||||||||||||
Number of cases dismissed | 10 | ||||||||||||||||||||||||
Environmental Matters - Aqueous Film Forming Foam Litigation | Various state courts | Forecast | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Increase (decrease) accrued loss contingency reserve | $ | $ 162,000,000 | ||||||||||||||||||||||||
Litigation payments | $ | $ 100,000,000 | ||||||||||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | U.S. District Court of New York State | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of putative class action and other lawsuits | 1 | ||||||||||||||||||||||||
Number of plaintiffs | individual | 24 | ||||||||||||||||||||||||
Settlement amount paid | $ | $ 65,000,000 | ||||||||||||||||||||||||
Number of lawsuits filed | 39 | ||||||||||||||||||||||||
Number of additional new claims filed | 5 | ||||||||||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | U.S. District Court of Eastern District of New York | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of lawsuits pending | 13 | 13 | |||||||||||||||||||||||
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." | perfluorinated_material | 2 | ||||||||||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | Alabama and Georgia | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of putative class action and other lawsuits | 3 | ||||||||||||||||||||||||
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 | 4 | 16 | |||||||||||||||||||||||
Number of lawsuits seeking medical monitoring and damages | case | 8 | ||||||||||||||||||||||||
Number of cases dismissed | case | 5 | ||||||||||||||||||||||||
Environmental Matters - Other PFAS-related Environmental Litigation | Michigan | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of putative class action and other lawsuits | 1 | ||||||||||||||||||||||||
Number of lawsuits filed | 275 | ||||||||||||||||||||||||
Number of plaintiffs added to case | party | 4 | ||||||||||||||||||||||||
Total number of federal bellwether cases | 5 | ||||||||||||||||||||||||
Number of federal bellwether cases with trial-ready dates set | 3 | ||||||||||||||||||||||||
Number of claims with summary judgment | case | 2 | ||||||||||||||||||||||||
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 | $ | $ 474,000,000 | ||||||||||||||||||||||||
Environmental Matters - Other Environmental Litigation | New Jersey | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Approximate number of miles of a river seeking to be cleaned | mi | 8 | ||||||||||||||||||||||||
The value the award the plaintiff seeks | $ | $ 165,000,000 | ||||||||||||||||||||||||
Number of chemicals of concern in the sediment | chemical | 8 | ||||||||||||||||||||||||
Number of commercial drum conditioning facilities | facility | 2 | ||||||||||||||||||||||||
Environmental Matters - Other Environmental Litigation | New Jersey | Minimum | |||||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||||
Number of unnamed defendant | defendant | 120 |
Commitments and Contingencies_3
Commitments and Contingencies - Product Liability (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | |||||||||
Nov. 30, 2021lawsuit | Oct. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Apr. 30, 2021USD ($)plaintiff | Dec. 31, 2020plaintiff | Jun. 30, 2021lawsuit | Mar. 31, 2022USD ($)individuallawsuitplaintiff | May 31, 2022lawsuit | Mar. 31, 2022lawsuit | Mar. 31, 2022case | Mar. 31, 2022wave | Feb. 28, 2022lawsuit | |
Product Liability - Dual-Ended Combat Arms Earplugs | ||||||||||||
Product Liability Litigation | ||||||||||||
Number of putative class action and other lawsuits | lawsuit | 14 | |||||||||||
Number of plaintiffs | plaintiff | 69,740 | |||||||||||
Accrued loss contingency reserve | $ | $ 0 | |||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | Multi-district litigation (MDL) | ||||||||||||
Product Liability Litigation | ||||||||||||
Number of lawsuits filed | lawsuit | 199,000 | |||||||||||
Number of plaintiffs | plaintiff | 3 | 3 | ||||||||||
Amount of punitive damages awarded | $ | $ 6,000,000 | |||||||||||
Settlement amount paid | $ | $ 8,000,000 | $ 1,000,000 | 7,000,000 | |||||||||
Initial number of federal bellwether cases | lawsuit | 2 | |||||||||||
Apportioned fault of the company | 62.00% | |||||||||||
Apportioned fault of the plaintiff | 38.00% | |||||||||||
Number of lawsuits pending | 75,000 | 1,500 | ||||||||||
Number of waves of pending lawsuits | wave | 3 | |||||||||||
Number of pending lawsuits per wave | lawsuit | 500 | 500 | 500 | |||||||||
Lawsuits pending period (in months) | 8 months | 14 months | ||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | Multi-district litigation (MDL) | Forecast | ||||||||||||
Product Liability Litigation | ||||||||||||
Number of lawsuits pending | lawsuit | 2 | |||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | State court | ||||||||||||
Product Liability Litigation | ||||||||||||
Number of lawsuits filed | lawsuit | 40 | |||||||||||
Number of plaintiffs | individual | 900 | |||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs | Maximum | Multi-district litigation (MDL) | ||||||||||||
Product Liability Litigation | ||||||||||||
Amount of compensatory damages awarded | $ | $ 1,000,000 | |||||||||||
Product Liability - Bair Hugger | ||||||||||||
Product Liability Litigation | ||||||||||||
Number of lawsuits filed | lawsuit | 5,267 | |||||||||||
Accrued loss contingency reserve | $ | $ 0 | |||||||||||
Product Liability - Bair Hugger | Canada. | ||||||||||||
Product Liability Litigation | ||||||||||||
Number of putative class action and other lawsuits | lawsuit | 1 | |||||||||||
Product Liability - Bair Hugger | Multi-district litigation (MDL) | ||||||||||||
Product Liability Litigation | ||||||||||||
Number of cases stayed | lawsuit | 3 | |||||||||||
Product Liability - Bair Hugger | State court | ||||||||||||
Product Liability Litigation | ||||||||||||
Number of lawsuits filed | lawsuit | 4 | |||||||||||
Product Liability - Bair Hugger | U.S. District Court for the District of Minnesota | ||||||||||||
Product Liability Litigation | ||||||||||||
Number of lawsuits filed | lawsuit | 61 | |||||||||||
Product Liability - Bair Hugger | Minimum | ||||||||||||
Product Liability Litigation | ||||||||||||
Number of plaintiffs | individual | 5,000 | |||||||||||
Product Liability - Bair Hugger and medical malpractice claims | Jackson County Missouri | ||||||||||||
Product Liability Litigation | ||||||||||||
Number of lawsuits pending | lawsuit | 2 | |||||||||||
Product Liability - Bair Hugger and medical malpractice claims | Hidalgo County Texas | ||||||||||||
Product Liability Litigation | ||||||||||||
Number of lawsuits pending | lawsuit | 1 | |||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Seventh Trial | Multi-district litigation (MDL) | ||||||||||||
Product Liability Litigation | ||||||||||||
Settlement amount paid | $ | $ 13,000,000 | |||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Eighth Trial | Multi-district litigation (MDL) | ||||||||||||
Product Liability Litigation | ||||||||||||
Settlement amount paid | $ | 23,000,000 | |||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Eleventh Trail, Plaintiff One | Multi-district litigation (MDL) | Compensatory Damages | ||||||||||||
Product Liability Litigation | ||||||||||||
Settlement amount paid | $ | 15,000,000 | |||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Eleventh Trail, Plaintiff One | Multi-district litigation (MDL) | Punitive Damages | ||||||||||||
Product Liability Litigation | ||||||||||||
Settlement amount paid | $ | 40,000,000 | |||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Eleventh Trail, Plaintiff Two | Multi-district litigation (MDL) | Compensatory Damages | ||||||||||||
Product Liability Litigation | ||||||||||||
Settlement amount paid | $ | 15,000,000 | |||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Eleventh Trail, Plaintiff Two | Multi-district litigation (MDL) | Punitive Damages | ||||||||||||
Product Liability Litigation | ||||||||||||
Settlement amount paid | $ | 40,000,000 | |||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Twelfth Trial | Multi-district litigation (MDL) | ||||||||||||
Product Liability Litigation | ||||||||||||
Settlement amount paid | $ | 50,000,000 | |||||||||||
Product Liability - Dual-Ended Combat Arms Earplugs, Thirteenth Trial | Multi-district litigation (MDL) | ||||||||||||
Product Liability Litigation | ||||||||||||
Settlement amount paid | $ | $ 8,000,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Stockholder Litigation (Details) | 2 Months Ended |
Dec. 31, 2019lawsuit | |
Securities Litigation | U.S. District Court for the District of Minnesota | |
Loss contingencies | |
Number of derivative lawsuits filed | 2 |
Commitments and Contingencies_5
Commitments and Contingencies - Federal False Claims Act / Qui Tam Litigation (Details) - Federal False Claims Act / Qui Tam Litigation | 3 Months Ended | |
Mar. 31, 2022employeelawsuit | Dec. 31, 2011lawsuit | |
Loss contingencies | ||
Number of actions declined to intervene | 2 | |
Number of lawsuits pending | 2 | |
Number of former employees | employee | 2 | |
Godecke case | ||
Loss contingencies | ||
Number of lawsuits pending | 1 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 1 Months Ended | 3 Months Ended |
May 31, 2021shares | Mar. 31, 2022ageshares | |
Share-based Compensation Arrangement by Share-based Payment Award Activity | ||
Retirement age eligibility for employees | age | 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) | 36.00% | |
Long Term Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award Activity | ||
Number of additional shares authorized | 26,633,508 | |
Number of shares available for grant | 31,000,000 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Amounts recognized in the financial statements | ||
Stock-based compensation expenses | $ 135 | $ 131 |
Income tax benefits | (37) | (51) |
Stock-based compensation expenses (benefits), net of tax | 98 | 80 |
Cost of sales | ||
Amounts recognized in the financial statements | ||
Stock-based compensation expenses | 24 | 22 |
Selling, general and administrative expenses | ||
Amounts recognized in the financial statements | ||
Stock-based compensation expenses | 83 | 84 |
Research, development and related expenses | ||
Amounts recognized in the financial statements | ||
Stock-based compensation expenses | $ 28 | $ 25 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Number of Options | ||
Beginning balance (in shares) | 34,560 | |
Granted (in shares) | 3,776 | |
Exercised (in shares) | (1,111) | |
Forfeited (in shares) | (156) | |
Ending balance (in shares) | 37,069 | |
Options exercisable (in shares) | 29,505 | |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 163.52 | |
Granted (in dollars per share) | 162.39 | |
Exercised (in dollars per share) | 95.04 | |
Forfeited (in dollars per share) | 174.36 | |
Ending balance (in dollars per share) | 165.42 | |
Options exercisable (in dollars per share) | $ 165.47 | |
Weighted Average Remaining Contractual Life (months) | ||
Weighted average remaining contractual life for options outstanding (in months) | 65 months | |
Weighted average remaining contractual life for options exercisable (in months) | 54 months | |
Aggregate Intrinsic Value (millions) | ||
Aggregate intrinsic value for options outstanding | $ 191,760 | |
Aggregate intrinsic value for options exercisable | $ 191,760 | |
Stock Options | ||
Aggregate Intrinsic Value (millions) | ||
Expiration of annual grants (in years) | 10 years | |
Compensation expense yet to be recognized | $ 88 | |
Expense recognition period (in months) | 26 months | |
Total intrinsic value of stock options exercised | $ 83 | $ 180 |
Cash received from options exercised | 103 | 240 |
Tax benefit realized from exercise of stock options | $ 17 | $ 38 |
Share- based compensation assumptions | ||
Weighted average exercise price (in dollars per share) | $ 162.41 | |
Risk-free interest rate (as a percent) | 1.90% | |
Dividend yield (as a percent) | 2.90% | |
Expected volatility (as a percent) | 21.80% | |
Expected life (in months) | 83 months | |
Black-Scholes fair value (in dollars per share) | $ 25.34 | |
Stock Options | Minimum | ||
Aggregate Intrinsic Value (millions) | ||
Vesting period (in years) | 1 year | |
Stock Options | Maximum | ||
Aggregate Intrinsic Value (millions) | ||
Vesting period (in years) | 3 years |
Stock-Based Compensation - RSU,
Stock-Based Compensation - RSU, RS, Performance Shares (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Weighted Average Grant Date Fair Value | ||
Tax benefit realized from vesting | $ 37,000,000 | $ 51,000,000 |
Restricted Stock and Restricted Stock Units | ||
Number of Shares | ||
Beginning balance (in shares) | 1,987 | |
Granted (in shares) | 1,024 | |
Vested/Distributed (in shares) | (497) | |
Forfeited (in shares) | (35) | |
Ending balance (in shares) | 2,479 | |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 175.96 | |
Granted (in dollars per share) | 162.18 | |
Vested (in dollars per share) | 200.60 | |
Forfeited (in dollars per share) | 167.51 | |
Ending balance (in dollars per share) | $ 165.44 | |
Compensation expense yet to be recognized | $ 181,000,000 | |
Expense recognition period (in months and years) | 28 months | |
Fair value that vested | $ 80,000,000 | 78,000,000 |
Tax benefit realized from vesting | $ 15,000,000 | 14,000,000 |
Vesting or performance period (in years) | 3 years | |
Value of dividend equivalents for restricted stock units that are forfeited | $ 0 | |
Impact on basic earnings per share due to restricted stock units dividends | $ 0 | |
Performance Shares | ||
Number of Shares | ||
Beginning balance (in shares) | 481 | |
Granted (in shares) | 264 | |
Vested/Distributed (in shares) | (116) | |
Performance change (in shares) | (18) | |
Forfeited (in shares) | (13) | |
Ending balance (in shares) | 598 | |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 175.12 | |
Granted (in dollars per share) | 144.75 | |
Vested (in dollars per share) | 207.49 | |
Performance change (in dollars per share) | 221.38 | |
Forfeited (in dollars per share) | 165.21 | |
Ending balance (in dollars per share) | $ 154.30 | |
Compensation expense yet to be recognized | $ 46,000,000 | |
Expense recognition period (in months and years) | 19 months | |
Fair value that vested | $ 21,000,000 | 22,000,000 |
Tax benefit realized from vesting | $ 4,000,000 | $ 4,000,000 |
Vesting or performance period (in years) | 3 years | |
Performance shares awarded at estimated number of shares at the end of the performance period (as a percent) | 100.00% | |
Performance Shares | Minimum | ||
Weighted Average Grant Date Fair Value | ||
Expense recognition period (in months and years) | 1 year | |
Number of shares to be delivered based on percent of each performance share granted upon satisfaction of performance conditions (as a percent) | 0.00% | |
Performance Shares | Maximum | ||
Weighted Average Grant Date Fair Value | ||
Expense recognition period (in months and years) | 3 years | |
Number of shares to be delivered based on percent of each performance share granted upon satisfaction of performance conditions (as a percent) | 200.00% |
Business Segments (Details)
Business Segments (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Number of business segments | 4 |
Business Segments - Business Se
Business Segments - Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Business Segment Information | ||
Net sales | $ 8,829 | $ 8,851 |
Total operating Income | 1,641 | 1,994 |
Gain/(loss) on sale of businesses | 0 | 0 |
Total operating expenses | 7,188 | 6,857 |
Other expense (income), net | 38 | 49 |
Income before income taxes | 1,603 | 1,945 |
Operating Segments | ||
Business Segment Information | ||
Total operating Income | 1,804 | 2,041 |
Operating Segments | Safety and Industrial | ||
Business Segment Information | ||
Net sales | 3,051 | 3,099 |
Total operating Income | 636 | 752 |
Operating Segments | Transportation and Electronics | ||
Business Segment Information | ||
Net sales | 2,340 | 2,396 |
Total operating Income | 496 | 556 |
Operating Segments | Health Care | ||
Business Segment Information | ||
Net sales | 2,124 | 2,069 |
Total operating Income | 448 | 464 |
Operating Segments | Consumer | ||
Business Segment Information | ||
Net sales | 1,313 | 1,289 |
Total operating Income | 224 | 269 |
Corporate and Unallocated | ||
Business Segment Information | ||
Net sales | 1 | (2) |
Net costs for significant litigation | (187) | (70) |
Gain/(loss) on sale of businesses | 0 | 0 |
Other corporate expense - net | 24 | 23 |
Total operating expenses | $ (163) | $ (47) |