3M Co. Files Q3 2024 10-Q

TL;DR

3M's Q3 10-Q is in: financials and legal updates are here.

AI Summary

3M Company filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter. Key financial data and disclosures related to ongoing legal matters and business segments are presented.

Why It Matters

This filing provides investors with the latest financial results and disclosures for 3M, impacting investment decisions and market sentiment.

Risk Assessment

Risk Level: medium — The company faces ongoing litigation and potential liabilities related to perfluorinated materials and respirators, which could materially impact its financial condition.

Key Numbers

• N/A — Revenue (Specific revenue figures for the quarter are not directly extracted from this header-level data.)
• N/A — Net Income (Specific net income figures for the quarter are not directly extracted from this header-level data.)
• N/A — Debt (While debt instruments are mentioned, specific outstanding debt amounts are not detailed in this header.)

Key Players & Entities

• 3M CO (company) — Filer
• 20240930 (date) — Period of Report
• ST PAUL (location) — Business Address City
• 6517331474 (phone_number) — Business Phone
• MINNESOTA MINING & MANUFACTURING CO (company) — Former Company Name
• mmm:perfluorinated_material (legal_issue) — Subject of litigation
• mmm:respirator (product) — Subject of litigation

FAQ

Key Financial Figures

• $0.01 — g at September 30, 2024 Common Stock, $0.01 par value per share 544,558,607 shares

Filing Documents

• mmm-20240930.htm (10-Q) — 3028KB
• q32024exhibit311.htm (EX-31.1) — 10KB
• q32024exhibit312.htm (EX-31.2) — 10KB
• q32024exhibit321.htm (EX-32.1) — 4KB
• q32024exhibit322.htm (EX-32.2) — 4KB
• q32024exhibit95.htm (EX-95) — 39KB
• 0000066740-24-000101.txt ( ) — 14937KB
• mmm-20240930.xsd (EX-101.SCH) — 70KB
• mmm-20240930_cal.xml (EX-101.CAL) — 109KB
• mmm-20240930_def.xml (EX-101.DEF) — 432KB
• mmm-20240930_lab.xml (EX-101.LAB) — 884KB
• mmm-20240930_pre.xml (EX-101.PRE) — 679KB
• mmm-20240930_htm.xml (XML) — 3196KB

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 9 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 45 NOTE 19. Business Segments 46

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 48 Overview 48 Results of Operations 56 Performance by Business Segment 57 Financial Condition and Liquidity 61

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 66

Controls and Procedures

Item 4. Controls and Procedures 66

Other Information

PART II. Other Information 67

Legal Proceedings

Item 1. Legal Proceedings 67

Risk Factors

Item 1A. Risk Factors 67

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 75

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 75

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 75

Other Information

Item 5. Other Information 75

Exhibits

Item 6. Exhibits 76 2 Table of Contents 3M COMPANY FORM 10-Q For the Quarterly Period Ended September 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 September 30, Nine months ended September 30, (Millions, except per share amounts) 2024 2023 2024 2023 Net sales $ 6,294 $ 6,270 $ 18,565 $ 18,608 Operating expenses Cost of sales 3,647 3,716 10,703 11,188 Selling, general and administrative expenses 1,062 5,419 3,322 18,182 Research, development and related expenses 269 267 803 862 Gain on business divestitures — ( 36 ) — ( 36 ) Total operating expenses 4,978 9,366 14,828 30,196 Operating income (loss) 1,316 ( 3,096 ) 3,737 ( 11,588 ) Other expense (income), net ( 405 ) 206 ( 323 ) 334 Income (loss) from continuing operations before income taxes 1,721 ( 3,302 ) 4,060 ( 11,922 ) Provision (benefit) for income taxes 348 ( 777 ) 771 ( 2,893 ) Income (loss) from continuing operations of consolidated group 1,373 ( 2,525 ) 3,289 ( 9,029 ) Income (loss) from unconsolidated subsidiaries, net of taxes 3 2 7 7 Net income (loss) from continuing operations including noncontrolling interest 1,376 ( 2,523 ) 3,296 ( 9,022 ) Less: Net income (loss) attributable to noncontrolling interest 4 4 15 14 Net income (loss) from continuing operations attributable to 3M 1,372 ( 2,527 ) 3,281 ( 9,036 ) Net income (loss) from discontinued operations, net of taxes — 452 164 1,096 Net income (loss) attributable to 3M $ 1,372 $ ( 2,075 ) $ 3,445 $ ( 7,940 ) Earnings (loss) per share attributable to 3M common shareholders: Weighted average 3M common shares outstanding — basic 550.6 554.3 553.1 553.7 Earnings (loss) per share from continuing operations — basic $ 2.49 $ ( 4.56 ) $ 5.93 $ ( 16.32 ) Earnings (loss) per share from discontinued operations — basic — 0.82 0.30 1.98 Earnings (loss) per share — basic $ 2.49 $ ( 3.74 ) $ 6.23 $ ( 14.34 ) Weighted average 3M common shares outstanding — diluted 552.7 554.3 554.5 553.7 Earnings (loss) per share from continuing operations —

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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