3M Co. Files 2023 Annual Report on Form 10-K

TL;DR

**3M Co. has filed its 2023 Form 10-K, providing a detailed annual financial and operational report.**

AI Summary

3M CO (MMM) filed a Annual Report (10-K) with the SEC on February 7, 2024. 3M Co. reported its 2023 fiscal year results on February 7, 2024. The company's SIC code is 3841 for Surgical & Medical Instruments & Apparatus. 3M Co. is incorporated in Delaware and has its principal executive offices in St. Paul, MN. The filing covers the fiscal year ending December 31, 2023. The report is a 10-K filing, indicating a comprehensive annual overview.

Why It Matters

For investors and stakeholders tracking 3M CO, this filing contains several important signals. The 10-K filing is a crucial document for investors and analysts to assess the company's financial health, performance, and strategic direction over the past fiscal year. This filing will contain detailed financial statements, risk factors, and management's discussion and analysis, offering insights into 3M's business operations and future outlook.

Risk Assessment

Risk Level: — 3M CO shows moderate risk based on this filing. The company faces significant legal and environmental liabilities, particularly related to PFAS and Combat Arms Earplug litigation, which could materially impact its financial performance and reputation.

Analyst Insight

Investors should closely examine the 'Risk Factors' section of the 10-K for detailed information on ongoing litigation and environmental liabilities, as these pose a substantial threat to 3M's financial stability.

Key Numbers

• 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 0000066740 — Central Index Key (FILER)
• 3841 — Standard Industrial Classification (SIC CODE)
• 410417775 — IRS Number (IRS NUMBER)
• 001-03285 — SEC File Number (SEC FILE NUMBER)
• 24602421 — Film Number (FILM NUMBER)
• 6517331474 — Business Phone (BUSINESS PHONE)
• 156 — Public Document Count (PUBLIC DOCUMENT COUNT)

Key Players & Entities

• 3M CO (company) — FILER
• 3M CO (company) — COMPANY CONFORMED NAME
• MINNESOTA MINING & MANUFACTURING CO (company) — FORMER COMPANY
• ST PAUL (location) — CITY
• DE (location) — STATE OF INCORPORATION
• MN (location) — STATE
• 3M CENTER (location) — STREET 1
• 20231231 (date) — CONFORMED PERIOD OF REPORT

Forward-Looking Statements

• 3M will continue to manage its long-term debt obligations, with a focus on the 1.500% Notes due 2026 as their maturity approaches. (3M CO) — high confidence, target: 2026-12-31

FAQ

Risk Factors

• Litigation and Legal Proceedings [high — legal]: The company is involved in significant ongoing litigation, including matters related to per- and polyfluoroalkyl substances (PFAS) and Combat Arms Earplug products, which could result in substantial liabilities and impact financial results.
• Contingent Liabilities and Commitments [high — financial]: 3M has substantial contingent liabilities and commitments, particularly related to environmental remediation and legal settlements, which require significant financial resources and could affect future profitability.
• Environmental, Health, and Safety Regulations [medium — regulatory]: The company is subject to extensive environmental, health, and safety regulations globally, compliance with which requires ongoing investment and may lead to penalties or operational disruptions if not met.
• Supply Chain Disruptions [medium — operational]: Global supply chain disruptions can impact the availability and cost of raw materials, affecting production and delivery schedules, and potentially impacting revenue and profitability.
• Competition [medium — market]: 3M operates in highly competitive markets and faces pressure from both established players and new entrants, requiring continuous innovation and cost management to maintain market share.

Industry Context

3M operates in diverse sectors including Safety & Industrial, Transportation & Electronics, Health Care, and Consumer goods, facing competition and regulatory scrutiny across these varied markets.

Regulatory Implications

The company is subject to numerous regulations concerning environmental protection, product safety, and financial reporting, requiring strict adherence to standards set by bodies like the EPA and SEC.

What Investors Should Do

1. Review the detailed financial statements and notes in the 10-K for a comprehensive understanding of 3M's financial position.
2. Analyze the 'Risk Factors' section to identify and assess the potential impact of ongoing litigation, environmental liabilities, and market challenges.
3. Evaluate management's discussion and analysis (MD&A) for insights into the company's strategic priorities, operational performance, and outlook for the upcoming fiscal year.

Year-Over-Year Comparison

This filing is the annual 10-K report for the fiscal year ending December 31, 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $52.2 billion — d shares outstanding, was approximately $52.2 billion as of January 31, 2024 (approximately $
• $50 million — tives. The Company also plans to invest $50 million over 2020 to 2025 to address racial opp
• $39 million — mpany is on pace, having delivered over $39 million through 2023. Compensation and Benefit
• $316 million — es. In 2023, 3M expended approximately $316 million on capital projects for environmental p
• $365 million — ntly expected to approach approximately $365 million for 2024 and 2025 in aggregate. Althou

Filing Documents

• mmm-20231231.htm (10-K) — 4186KB
• exhibit101-3m2016longxterm.htm (EX-10.1) — 143KB
• exhibit1014-annualincentiv.htm (EX-10.14) — 41KB
• exhibit1015-3musexecutives.htm (EX-10.15) — 101KB
• a2023exhibit2110k.htm (EX-21) — 41KB
• a2023exhibit2310k.htm (EX-23) — 2KB
• a2023exhibit2410k.htm (EX-24) — 13KB
• a2023q4exhibit311.htm (EX-31.1) — 10KB
• a2023q4exhibit312.htm (EX-31.2) — 10KB
• a2023q4exhibit321.htm (EX-32.1) — 4KB
• a2023q4exhibit322.htm (EX-32.2) — 4KB
• a2023q4exhibit95.htm (EX-95) — 39KB
• a2023ex97-recoupmentpolicy.htm (EX-97) — 37KB
• 0000066740-24-000016.txt ( ) — 22760KB
• mmm-20231231.xsd (EX-101.SCH) — 129KB
• mmm-20231231_cal.xml (EX-101.CAL) — 145KB
• mmm-20231231_def.xml (EX-101.DEF) — 751KB
• mmm-20231231_lab.xml (EX-101.LAB) — 1571KB
• mmm-20231231_pre.xml (EX-101.PRE) — 1106KB
• mmm-20231231_htm.xml (XML) — 4668KB

Risk Factors

Item 1A. Risk Factors 10

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 16

Cybersecurity

Item 1C. Cybersecurity 17

Properties

Item 2. Properties 18

Legal Proceedings

Item 3. Legal Proceedings 18

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 18 PART II 18

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 18

[Reserved]

Item 6. [Reserved] 19

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Overview 19 Results of Operations 27 Performance by Business Segment 28 Performance by Geographic Area 33 Critical Accounting Estimates 34 New Accounting Pronouncements 36 Financial Condition and Liquidity 36 Financial Instruments 40

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 40

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 41 Index to Financial Statements 41 Management's Responsibility for Financial Reporting 41 Management's Report on Internal Control Over Financial Reporting 41 Report of Independent Registered Public Accounting Firm 42 Consolidated Statement of Income (Loss) 44 Consolidated Statement of Comprehensive Income (Loss) 45 Consolidated Balance Sheet 46 Consolidated Statement of Changes in Equity 47 Consolidated Statement of Cash Flows 48

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 49 NOTE 1. Significant Accounting Policies 49 NOTE 2. Revenue 54 NOTE 3. Divestitures 55 NOTE 4. Goodwill and Intangible Assets 56 NOTE 5. Restructuring Actions 57 NOTE 6. Supplemental Income (Loss) Statement Information 58 NOTE 7. Supplemental Balance Sheet Information 59 NOTE 8. Supplemental Equity and Comprehensive Income (Loss) Information 60 NOTE 9. Supplemental Cash Flow Information 61 NOTE 10. Income Taxes 61 NOTE 11. Earnings (Loss) Per Share 64 NOTE 12. Marketable Securities 64 NOTE 13. Long-Term Debt and Short-Term Borrowings 65 NOTE 14. Pension and Postretirement Benefit Plans 67 NOTE 15. Supplier Finance Program Obligations 74 NOTE 16. Derivatives 74 2 Table of Contents TABLE OF CONTENTS PAGE NOTE 17. Fair Value Measurements 77 NOTE 18. Commitments and Contingencies 79 NOTE 19. Leases 103 NOTE 20. Stock-Based Compensation 103 NOTE 21. Business Segments and Geographic Information 106

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 110

Controls and Procedures

Item 9A. Controls and Procedures 110

Other Information

Item 9B. Other Information 110

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 110 PART III 111

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 111

Executive Compensation

Item 11. Executive Compensation 111

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 112

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 112

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 112 PART IV 113

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 113

Form 10-K Summary

Item 16. Form 10-K Summary 115 3 Table of Contents 3M COMPANY ANNUAL REPORT ON FORM 10-K For the Year Ended December 31, 2023 PART I

Business

Item 1. Business 3M Company was incorporated in 1929 under the laws of the State of Delaware to continue operations begun in 1902. The Company's ticker symbol is MMM. As used herein, the term "3M" or "Company" includes 3M Company and its subsidiaries unless the context indicates otherwise. In this document, for any references to Note 1 through Note 21, refer to the Notes to Consolidated Financial Statements in Item 8. Available Information : The Securities and Exchange Commission (SEC) maintains a website that contains reports, proxy and information statements, and other information regarding issuers, including the Company, that file electronically with the SEC. The public can obtain any documents that the Company files with the SEC at https://www.sec.gov. The Company files annual reports, quarterly reports, proxy statements and other documents with the SEC under the Securities Exchange Act of 1934 (Exchange Act). 3M also makes available free of charge through its website (https://investors.3M.com) the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and, if applicable, amendments to those reports filed or furnished pursuant to the Exchange Act as soon as reasonably practicable after the Company electronically files such material with, or furnishes it to, the SEC. General : 3M is a diversified technology company with a global presence in the following businesses : Safety and Industrial; Transportation and Electronics; Health Care; and Consumer. In July 2022, 3M announced its intention to spin off the Health Care business as a separate public company (see Note 3 for additional information). 3M is among the leading manufacturers of products for many of the markets it serves. Most 3M products involve expertise in product development, manufacturing and marketing, and are subject to competition from products manufactured and sold by other technologically oriented companies. 4 Table of Contents Business Segments :

View Full Filing

View this 10-K filing on SEC EDGAR