3M Co. Files Q2 2024 10-Q Amid Legal Battles

TL;DR

3M's Q2 10-Q is out, showing financials and ongoing PFAS lawsuits. Keep an eye on legal costs.

AI Summary

3M Company (MMM) filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and ongoing legal matters, including significant litigation related to perfluorinated materials. The company's financial statements reflect its operational activities and debt obligations.

Why It Matters

This filing provides insight into 3M's financial health and its ongoing exposure to significant legal liabilities, particularly concerning environmental and health-related lawsuits.

Risk Assessment

Risk Level: high — The company faces substantial ongoing litigation, particularly concerning perfluorinated materials, which poses significant financial and operational risks.

Key Numbers

• N/A — Revenue (Specific revenue figures are not detailed in the provided header information.)
• N/A — Net Income (Specific net income figures are not detailed in the provided header information.)
• N/A — Debt (Specific debt figures are not detailed in the provided header information, though debt instruments are referenced.)

Key Players & Entities

• 3M CO (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• ST. PAUL (location) — Company headquarters city
• PFAS (chemical) — Subject of significant litigation

FAQ

Key Financial Figures

• $0.01 — anding at June 30, 2024 Common Stock, $0.01 par value per share 549,353,621 shares

Filing Documents

• mmm-20240630.htm (10-Q) — 3005KB
• exhibit101-offerletterofem.htm (EX-10.1) — 37KB
• q22024exhibit311.htm (EX-31.1) — 10KB
• q22024exhibit312.htm (EX-31.2) — 10KB
• q22024exhibit321.htm (EX-32.1) — 4KB
• q22024exhibit322.htm (EX-32.2) — 4KB
• q22024exhibit95.htm (EX-95) — 39KB
• image_0a.jpg (GRAPHIC) — 14KB
• 0000066740-24-000080.txt ( ) — 14994KB
• mmm-20240630.xsd (EX-101.SCH) — 73KB
• mmm-20240630_cal.xml (EX-101.CAL) — 108KB
• mmm-20240630_def.xml (EX-101.DEF) — 444KB
• mmm-20240630_lab.xml (EX-101.LAB) — 897KB
• mmm-20240630_pre.xml (EX-101.PRE) — 688KB
• mmm-20240630_htm.xml (XML) — 3170KB

Financial Information

PART I. Financial Information 3

Financial Statements

Item 1. Financial Statements 3 Consolidated Statement of Income (Loss) 3 Consolidated Statement of Comprehensive Income (Loss) 4 Consolidated Balance Sheet 5 Consolidated Statement of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 NOTE 1. Significant Accounting Policies 7 NOTE 2. Discontinued Operations 7 NOTE 3. Revenue 9 NOTE 4. Divestitures 10 NOTE 5. Goodwill and Intangible Assets 10 NOTE 6. Restructuring Actions 11 NOTE 7. Supplemental Income (Loss) Statement Information 12 NOTE 8. Supplemental Equity and Comprehensive Income (Loss) Information 13 NOTE 9. Income Taxes 15 NOTE 10. Earnings (Loss) Per Share 16 NOTE 11. Marketable Securities 16 NOTE 12. Long-Term Debt and Short-Term Borrowings 17 NOTE 13. Pension and Postretirement Benefit Plans 18 NOTE 14. Supplier Finance Program Obligations 20 NOTE 15. Derivatives 20 NOTE 16. Fair Value Measurements 23 NOTE 17. Commitments and Contingencies 24 NOTE 18. Stock-Based Compensation 46 NOTE 19. Business Segments 47

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 50 Overview 50 Results of Operations 59 Performance by Business Segment 60 Financial Condition and Liquidity 65

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 69

Controls and Procedures

Item 4. Controls and Procedures 69

Other Information

PART II. Other Information 70

Legal Proceedings

Item 1. Legal Proceedings 70

Risk Factors

Item 1A. Risk Factors 70

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 78

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 78

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 78

Other Information

Item 5. Other Information 78

Exhibits

Item 6. Exhibits 79 2 Table of Contents 3M COMPANY FORM 10-Q For the Quarterly Period Ended June 30, 2024

Financial Information

PART I. Financial Information

Financial Statements

Item 1. Financial Statements 3M Company and Subsidiaries Consolidated Statement of Income (Loss) (Unaudited) Three months ended June 30, Six months ended June 30, (Millions, except per share amounts) 2024 2023 2024 2023 Net sales $ 6,255 $ 6,283 $ 12,271 $ 12,338 Operating expenses Cost of sales 3,571 3,728 7,056 7,472 Selling, general and administrative expenses 1,132 11,615 2,260 12,763 Research, development and related expenses 280 298 534 595 Total operating expenses 4,983 15,641 9,850 20,830 Operating income (loss) 1,272 ( 9,358 ) 2,421 ( 8,492 ) Other expense (income), net ( 138 ) 72 82 128 Income (loss) from continuing operations before income taxes 1,410 ( 9,430 ) 2,339 ( 8,620 ) Provision (benefit) for income taxes 203 ( 2,261 ) 423 ( 2,116 ) Income (loss) from continuing operations of consolidated group 1,207 ( 7,169 ) 1,916 ( 6,504 ) Income (loss) from unconsolidated subsidiaries, net of taxes 3 3 4 5 Net income (loss) from continuing operations including noncontrolling interest 1,210 ( 7,166 ) 1,920 ( 6,499 ) Less: Net income (loss) attributable to noncontrolling interest 6 5 11 10 Net income (loss) from continuing operations attributable to 3M 1,204 ( 7,171 ) 1,909 ( 6,509 ) Net income (loss) from discontinued operations, net of taxes ( 59 ) 330 164 644 Net income (loss) attributable to 3M $ 1,145 $ ( 6,841 ) $ 2,073 $ ( 5,865 ) Earnings (loss) per share attributable to 3M common shareholders: Weighted average 3M common shares outstanding — basic 553.8 553.9 554.4 553.3 Earnings (loss) per share from continuing operations — basic $ 2.17 $ ( 12.94 ) $ 3.44 $ ( 11.76 ) Earnings (loss) per share from discontinued operations — basic ( 0.10 ) 0.59 0.30 1.16 Earnings (loss) per share — basic $ 2.07 $ ( 12.35 ) $ 3.74 $ ( 10.60 ) Weighted average 3M common shares outstanding — diluted 554.8 553.9 555.3 553.3 Earnings (loss) per share from continuing operations — diluted $ 2.17 $ ( 12.94 ) $ 3.44 $ ( 11.76 ) Earnin

Notes to Consolidated Financial Statements(Unaudited)

Notes to Consolidated Financial Statements(Unaudited) NOTE 1. Significant Accounting Policies Basis of Presentation: The interim consolidated financial statements are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair statement of the Company's consolidated financial position, results of operations and cash flows for the periods presented. These adjustments consist of normal, recurring items. The results of operations for any interim period are not necessarily indicative of results for the full year. The interim consolidated financial statements and notes are presented as permitted by the requirements for Quarterly Reports on Form 10-Q. This Quarterly Report on Form 10-Q should be read in conjunction with the Company's consolidated financial statements and notes included in its Annual Report on Form 10-K. Certain amounts in prior periods' consolidated financial statements have been reclassified to conform to current period presentation. Information provided herein reflects the impact of these changes for all applicable periods presented. As discussed in Note 2, on April 1, 2024, 3M completed the previously announced separation of its Health Care business (the Separation) through a pro rata distribution of 80.1 % of the outstanding shares of Solventum Corporation (Solventum) to 3M stockholders. As a result of the Separation, Solventum became an independent public company and 3M no longer consolidates Solventum into 3M's financial results. In connection with the Separation, the historical net income of Solventum and applicable assets and liabilities included in the Separation are reported in 3M's consolidated financial statements as discontinued operations. 3M made certain changes to the composition of segment information reviewed by 3M's chief operating decision maker (CODM) effective in the second quarter of 2024 largely as a result of the separation of Solventum and changes within its business segments effective in the

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View this 10-Q filing on SEC EDGAR