mmm-20240630

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number: 1-3285

3M COMPANY

(Exact name of registrant as specified in its charter)


Delaware						41-0417775
(State or other jurisdiction of incorporation)						(IRS Employer Identification No.)

3M Center, St. Paul, Minnesota						55144-1000
(Address of Principal Executive Offices)						(Zip Code)

(Registrant’s Telephone Number, Including Area Code) (651) 733-1110

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, Par Value $.01 Per Share

MMM

New York Stock Exchange

MMM

Chicago Stock Exchange, Inc.

1.500% Notes due 2026

MMM26

New York Stock Exchange

1.750% Notes due 2030

MMM30

New York Stock Exchange

1.500% Notes due 2031

MMM31

New York Stock Exchange

Note: The common stock of the Registrant is also traded on the SIX Swiss Exchange.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class						Outstanding at June 30, 2024
Common Stock, $0.01 par value per share						549,353,621 shares

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3M COMPANY

Form 10-Q for the Quarterly Period Ended June 30, 2024


TABLE OF CONTENTS			PAGE
PART I. Financial Information			3
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			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
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
Item 3. Quantitative and Qualitative Disclosures About Market Risk			69
Item 4. Controls and Procedures			69
PART II. Other Information			70
Item 1. Legal Proceedings			70
Item 1A. Risk Factors			70
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			78
Item 3. Defaults Upon Senior Securities			78
Item 4. Mine Safety Disclosures			78
Item 5. Other Information			78
Item 6. Exhibits			79

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3M COMPANY

FORM 10-Q

For the Quarterly Period Ended June 30, 2024

PART I. Financial Information

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)
Earnings (loss) per share from discontinued operations — diluted	(0.10)		0.59		0.29		1.16
Earnings (loss) per share — diluted	$	2.07	$	(12.35)	$	3.73	$	(10.60)

The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.

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3M Company and Subsidiaries

Consolidated Statement of Comprehensive Income (Loss)

(Unaudited)


	Three months ended June 30,				Six months ended June 30,
(Millions)	2024		2023		2024		2023
Net income (loss) attributable to 3M	$	1,145	$	(6,841)	$	2,073	$	(5,865)
Net income (loss) attributable to noncontrolling interest	6		5		11		10
Net income (loss) including noncontrolling interest	1,151		(6,836)		2,084		(5,855)
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment	(145)		25		(353)		141
Defined benefit pension and postretirement plans adjustment	826		50		961		101
Cash flow hedging instruments	(7)		23		19		(1)
Total other comprehensive income (loss), net of tax	674		98		627		241
Comprehensive income (loss) including noncontrolling interest	1,825		(6,738)		2,711		(5,614)
Comprehensive (income) loss attributable to noncontrolling interest	(5)		(6)		(11)		(11)
Comprehensive income (loss) attributable to 3M	$	1,820	$	(6,744)	$	2,700	$	(5,625)

The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.

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3M Company and Subsidiaries

Consolidated Balance Sheet

(Unaudited)


(Dollars in millions, except per share amount)	June 30, 2024		December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	10,083	$	5,735
Marketable securities — current	255		50
Accounts receivable — net of allowances of $64 and $62	3,575		3,601
Inventories
Finished goods	1,956		1,842
Work in process	1,193		1,242
Raw materials and supplies	911		860
Total inventories	4,060		3,944
Prepaids	444		344
Other current assets	1,098		326
Current assets of discontinued operations	—		2,379
Total current assets	19,515		16,379
Property, plant and equipment	23,278		23,494
Less: Accumulated depreciation	(15,806)		(15,804)
Property, plant and equipment — net	7,472		7,690
Operating lease right of use assets	610		657
Goodwill	6,318		6,382
Intangible assets — net	1,266		1,323
Other assets	8,196		6,806
Non-current assets of discontinued operations	—		11,343
Total assets	$	43,377	$	50,580
Liabilities
Current liabilities
Short-term borrowings and current portion of long-term debt	$	1,302	$	2,947
Accounts payable	2,813		2,776
Accrued payroll	602		695
Accrued income taxes	407		304
Operating lease liabilities — current	169		192
Other current liabilities	9,052		6,660
Current liabilities of discontinued operations	—		1,723
Total current liabilities	14,345		15,297
Long-term debt	11,781		13,088
Pension and postretirement benefits	1,717		2,156
Operating lease liabilities	443		464
Other liabilities	11,103		14,021
Non-current liabilities of discontinued operations	—		686
Total liabilities	39,389		45,712
Commitments and contingencies (Note 17)
Equity
3M Company shareholders’ equity:
Common stock par value, $.01 par value; 944,033,056 shares issued	9		9
Shares outstanding - June 30, 2024: 549,353,621, December 31, 2023: 552,581,136
Additional paid-in capital	7,146		6,956
Retained earnings	35,475		37,479
Treasury stock, at cost:	(33,147)		(32,859)
Shares at June 30, 2024: 394,679,435, December 31, 2023: 391,451,920
Accumulated other comprehensive income (loss)	(5,567)		(6,778)
Total 3M Company shareholders’ equity	3,916		4,807
Noncontrolling interest	72		61
Total equity	3,988		4,868
Total liabilities and equity	$	43,377	$	50,580

The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.

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3M Company and Subsidiaries

Consolidated Statement of Cash Flows1

(Unaudited)


	Six months ended June 30,
(Millions)	2024		2023
Cash Flows from Operating Activities
Net income (loss) including noncontrolling interest	$	2,084	$	(5,855)
Adjustments to reconcile net income (loss) including noncontrolling interest to net cash provided by operating activities
Depreciation and amortization	731		915


Company pension and postretirement contributions	(86)		(57)
Company pension and postretirement expense	898		75
Stock-based compensation expense	200		176

Deferred income taxes	115		(2,547)
Changes in assets and liabilities
Accounts receivable	(219)		(393)
Inventories	(270)		101
Accounts payable	166		135
Accrued income taxes (current and long-term)	(172)		(409)
Other — net	(1,659)		10,643
Net cash provided by (used in) operating activities	1,788		2,784

Cash Flows from Investing Activities
Purchases of property, plant and equipment (PP&E)	(644)		(852)
Proceeds from sale of PP&E and other assets	53		23

Purchases of marketable securities and investments	(943)		(775)
Proceeds from maturities and sale of marketable securities and investments	707		945


Other — net	(29)		40
Net cash provided by (used in) investing activities	(856)		(619)

Cash Flows from Financing Activities
Change in short-term debt — net	(205)		651
Repayment of debt (maturities greater than 90 days)	(2,653)		(1,802)
Proceeds from debt (maturities greater than 90 days)	8,367		1,107
Purchases of treasury stock	(421)		(29)
Proceeds from issuance of treasury stock pursuant to stock option and benefit plans	30		218
Dividends paid to shareholders	(1,221)		(1,655)
Cash transferred to Solventum related to separation, net	(577)		—
Other — net	(57)		(9)
Net cash provided by (used in) financing activities	3,263		(1,519)

Effect of exchange rate changes on cash and cash equivalents	(45)		(43)

Net increase (decrease) in cash and cash equivalents	4,150		603
Cash and cash equivalents at beginning of year	5,933		3,655
Cash and cash equivalents at end of period	$	10,083	$	4,258

The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.

1 The Consolidated Statements of Cash Flows include the results of continuing and discontinued operations and, therefore, also include cash and cash equivalents associated with Solventum through its April 2024 separation from 3M that were presented in current assets of discontinued operations in the 3M Consolidated Balance Sheet.

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3M Company and Subsidiaries

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 first quarter of 2024 as further described in Note 19. To the extent these changes impacted 3M's disclosed disaggregated revenue information, data in Note 3 has also been updated.

New Accounting Pronouncements: Refer to Note 1 to the Consolidated Financial Statements in 3M's 2023 Annual Report on Form 10-K for a discussion of applicable standards issued and not yet adopted by 3M.

Relevant New Standards Issued Subsequent to Most Recent Annual Report

In March 2024, the SEC adopted rules under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors, which require a registrant to disclose information in annual reports and registration statements about climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. The information would include disclosure of a registrant's greenhouse gas emissions. In addition, certain disclosures related to severe weather events and other natural conditions will be required in a registrant’s audited financial statements. Annual disclosure requirements would be effective for 3M as early as the fiscal year beginning January 1, 2025. However, in April 2024, the SEC voluntarily stayed the final rules pending certain legal challenges. The Company is evaluating the impact of these rules on its disclosures.

NOTE 2. Discontinued Operations

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. The spin-off transaction was intended to be tax-free for U.S. federal income tax purposes. To reflect the completion of the spin, 3M recorded a decrease in shareholders equity for the net book value of applicable assets and liabilities included in the Separation, net of the book value of 3M's retained ownership. 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. Following the Separation, as 3M no longer controls or has the ability to exert significant influence over Solventum, 3M measures, at fair value on a recurring basis, its retained ownership interest in Solventum common stock (see additional information in Note 7). 3M expects to monetize its stake in Solventum over time.

The Company entered into various agreements to effect the Separation and provide for the relationship between 3M and Solventum, including, among others, a separation and distribution agreement; a tax matters agreement; and transition service, distribution, and contract manufacturing agreements; as well as certain commercial supply agreements. The transition service and distribution agreements have overall terms of two years following the Separation and each may be extended an additional year. The transition contract manufacturing agreement's term is three years with an ability to extend under certain circumstances. Supply agreements, by which each company may provide product to the other, have initial three-year terms, but may extend for particular products up to ten or twelve years following the Separation, under certain circumstances. In addition, the companies had certain amounts due between them as of the Separation date.

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3M continuing involvement with Solventum in the form of net sales under supply agreements and income from transition agreements is reflected in amounts disclosed in Note 19 relative to "Corporate and Unallocated" (recorded as net sales and associated costs) and "Other" (recorded as a direct offset to associated costs), respectively. Solventum transition agreement income for the three months ended June 30, 2024 included in "Other" was approximately $30 million (approximately $200 million gross fees, net of assigned costs). Transition services or purchases from Solventum are not material to 3M. Amounts due from Solventum and amounts due to Solventum under the agreements described above were approximately $0.5 billion and $0.2 billion, respectively, as of June 30, 2024.

Information regarding net income (loss) from discontinued operations, net of taxes includes the following:


	Three months ended June 30,				Six months ended June 30,
Net Income (Loss) from Discontinued Operations, Net of Taxes (millions)	2024		2023		2024		2023
Net sales	$	—	$	2,042	$	1,987	$	4,018
Cost of sales	—		878		844		1,747
Other operating expenses	46		764		837		1,496
Other expense (income), net	—		(7)		44		(11)
Income (loss) from discontinued operations before income taxes	(46)		407		262		786
Provision for income taxes	13		77		98		142
Net income (loss) from discontinued operations, net of taxes	$	(59)	$	330	$	164	$	644

Major classes of assets and liabilities of discontinued operations include the following:



Assets and Liabilities of Discontinued Operations (millions)	December 31, 2023
Assets
Cash and cash equivalents	$	198
Marketable securities — current	3
Accounts receivable — net	1,149
Inventories	878
Other current assets	151
Current assets of discontinued operations	2,379
Property, plant and equipment — net	1,469
Operating lease right of use assets	102
Goodwill	6,545
Intangible assets — net	2,903
Other assets	324
Non-current assets of discontinued operations	11,343
Liabilities

Accounts payable	469
Accrued payroll	209
Accrued income taxes	61
Operating lease liabilities — current	33
Other current liabilities	951
Current liabilities of discontinued operations	1,723

Pension and postretirement benefits	315
Operating lease liabilities	70
Other liabilities	301
Non-current liabilities of discontinued operations	686

Cash flows related to discontinued operations have not been segregated, and are included in the Consolidated Statement of Cash Flows for all periods presented. Selected financial information related to cash flows from discontinued operations is below.


	Six months ended June 30,
Selected Cash Flows from Discontinued Operations (millions)	2024		2023
Depreciation and amortization	$	139	$	277

Purchases of property, plant and equipment (PP&E)	77		104

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NOTE 3. Revenue

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 June 30,				Six months ended June 30,
Net Sales by Division (millions)	2024		2023		2024		2023
Abrasives	$	324	$	334	$	652	$	675
Automotive Aftermarket	304		305		610		617
Electrical Markets	325		329		636		653
Industrial Adhesives and Tapes	531		517		1,049		1,033
Industrial Specialties Division	285		298		569		606
Personal Safety	857		849		1,714		1,717
Roofing Granules	133		133		261		243
Total Safety and Industrial Business Segment	2,759		2,765		5,491		5,544

Advanced Materials	244		305		507		606
Automotive and Aerospace	481		477		987		939
Commercial Branding and Transportation	672		695		1,282		1,310
Electronics	746		714		1,471		1,386
Total Transportation and Electronics Business Segment	2,143		2,191		4,247		4,241

Consumer Safety and Well-Being	280		278		546		548
Home and Auto Care	302		337		607		655
Home Improvement	369		355		699		696
Packaging and Expression	312		323		551		586
Total Consumer Business Segment	1,263		1,293		2,403		2,485

Corporate and Unallocated	86		22		112		45
Other	4		12		18		23
Total Company	$	6,255	$	6,283	$	12,271	$	12,338


	Three months ended June 30,				Six months ended June 30,
Net Sales by Geographic Area (millions)	2024		2023		2024		2023
Americas	$	3,480	$	3,396	$	6,630	$	6,568
Asia Pacific	1,721		1,776		3,489		3,590
Europe, Middle East and Africa	1,054		1,111		2,152		2,180

Worldwide	$	6,255	$	6,283	$	12,271	$	12,338

Americas included United States net sales to customers of $2.8 billion and $5.3 billion for the three and six months ended June 30, 2024, respectively, and $2.8 billion and $5.3 billion for the three and six months ended June 30, 2023, respectively. Asia Pacific included China/Hong Kong net sales to customers of $0.7 billion and $1.4 billion for the three and six months ended June 30, 2024, respectively, and $0.6 billion and $1.3 billion for the three and six months ended June 30, 2023, respectively.

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NOTE 4. Divestitures

Refer to Note 3 to the Consolidated Financial Statements in 3M's 2023 Annual Report on Form 10-K for more information on relevant pre-2024 divestitures.

On April 1, 2024, 3M completed the 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. See Note 2 for additional detail, including information regarding reporting the historical net income of Solventum and applicable assets and liabilities included in the Separation in 3M's consolidated financial statements as discontinued operations.

NOTE 5. Goodwill and Intangible Assets

Goodwill: The change in the carrying amount of goodwill by business segment was as follows:


(Millions)	Safety and Industrial		Transportation and Electronics		Consumer		Corporate and Unallocated		Total Company





Balance as of December 31, 2023	$	4,542	$	1,512	$	270	$	58	$	6,382



Translation and other	(42)		(10)		(12)		—		(64)
Balance as of June 30, 2024	$	4,500	$	1,502	$	258	$	58	$	6,318

The amounts in the “Translation and other” row in the above table primarily relate to changes in foreign currency exchange rates.

As of June 30, 2024, the Company's accumulated goodwill impairment loss is $0.3 billion.

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 follow:



(Millions)	June 30, 2024		December 31, 2023
Customer related	$	1,328	$	1,337
Patents	224		225
Other technology-based	373		375
Definite-lived tradenames	488		489
Other	46		48
Total gross carrying amount	2,459		2,474

Accumulated amortization — customer related	(910)		(883)
Accumulated amortization — patents	(223)		(224)
Accumulated amortization — other technology-based	(322)		(317)
Accumulated amortization — definite-lived tradenames	(288)		(276)
Accumulated amortization — other	(30)		(31)
Total accumulated amortization	(1,773)		(1,731)

Total finite-lived intangible assets — net	686		743

Indefinite lived intangible assets (primarily tradenames)	580		580
Total intangible assets — net	$	1,266	$	1,323

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 follows:



	Three months ended June 30,				Six months ended June 30,
(Millions)	2024		2023		2024		2023
Amortization expense	$	27	$	29	$	54	$	59

Expected amortization expense for acquired amortizable intangible assets recorded as of June 30, 2024 follows:


(Millions)	Remainder of 2024		2025		2026		2027		2028		2029		After 2029
Amortization expense	$	52	$	105	$	104	$	85	$	59	$	57	$	224

3M expenses the costs incurred to renew or extend the term of intangible assets.

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NOTE 6. Restructuring Actions

2023 to 2025 Structural Reorganization Actions: As described in Note 5 in 3M's 2023 Annual Report on Form 10-K, in the first quarter of 2023, 3M announced it would undertake structural reorganization actions to reduce the size of the corporate center of the Company, simplify supply chain, streamline 3M’s geographic footprint, reduce layers of management, further align business go-to-market models to customers, and reduce manufacturing roles to align with production volumes. This aggregate initiative, beginning in the first quarter of 2023 and continuing through 2025, is expected (as updated to exclude discontinued operations) to impact approximately 8,000 positions worldwide with an expected pre-tax charge of $700 million to $800 million over that period. During 2023, management approved and committed to undertake associated actions resulting in a 2023 pre-tax charge of $415 million. During 2024, management approved and committed to undertake additional actions under this initiative impacting approximately 700 positions resulting in a pre-tax charge of $35 million and $138 million in the second quarter and six months ended June 30, 2024, respectively. Since its beginning in 2023 through committed second quarter 2024 actions, this initiative has impacted approximately 6,400 positions worldwide. Remaining activities related to the restructuring actions approved and committed through June 30, 2024 under this initiative are expected to be completed in 2025. 3M expects to commit to further actions under this initiative.

The related restructuring charges for periods presented were recorded in the income (loss) statement as follows:


	Three months ended June 30,				Six months ended June 30,
(Millions)	2024		2023		2024		2023
Cost of sales	$	2	$	44	$	4	$	59
Selling, general and administrative expenses	32		140		123		171
Research, development and related expenses	1		18		11		22
Total operating income impact	$	35	$	202	$	138	$	252

The business segment operating income (loss) impact of these restructuring charges is summarized as follows:


	Three months ended June 30,
	2024						2023
(Millions)	Employee Related		Asset-Related and Other		Total		Employee Related		Asset-Related and Other		Total
Safety and Industrial	$	13	$	5	$	18	$	44	$	—	$	44
Transportation and Electronics	7		4		11		25		—		25
Consumer	4		2		6		13		—		13
Corporate and unallocated	—		—		—		100		20		120
Total operating expense	$	24	$	11	$	35	$	182	$	20	$	202

	Six months ended June 30,
	2024						2023
(Millions)	Employee Related		Asset-Related and Other		Total		Employee Related		Asset-Related and Other		Total
Safety and Industrial	$	39	$	25	$	64	$	54	$	—	$	54
Transportation and Electronics	16		18		34		37		—		37
Consumer	9		11		20		16		—		16
Corporate and unallocated	6		14		20		125		20		145
Total operating expense	$	70	$	68	$	138	$	232	$	20	$	252

Restructuring actions, including cash and non-cash impacts, follow:


(Millions)	Employee-Related		Asset-Related and Other		Total
Accrued restructuring action balance as of December 31, 2023	$	99	$	—	$	99
Incremental expense incurred in the first quarter of 2024	46		57		103
Incremental expense incurred in the second quarter of 2024	24		11		35



Non-cash changes	—		(68)		(68)
Adjustments	12		—		12
Cash payments	(92)		—		(92)
Accrued restructuring action balance as of June 30, 2024	$	89	$	—	$	89

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2023 to 2025 PFAS Exit Actions: As described in Note 5 in 3M's 2023 Annual Report on Form 10-K, 3M announced in 2022 that it will exit all PFAS manufacturing by the end of 2025. In 2023, 3M management approved and committed to undertake certain related workforce actions resulting in a pre-tax charge of $64 million primarily impacting cost of sales. During 2024, management approved and committed to undertake additional related workforce actions impacting approximately 60 positions resulting in a pre-tax charge of $8 million and $12 million primarily impacting cost of sales in the second quarter and six months ended June 30, 2024, respectively. These charges are reflected within the Transportation and Electronics business segment. This initiative, beginning in 2023 through committed second quarter 2024 actions, has impacted approximately 610 positions worldwide. The remaining period of activities related to these approved and committed actions aligns with 3M's PFAS exit timeframe.


(Millions)	Employee-Related
Accrued restructuring action balance as of December 31, 2023	$	60
Incremental expense incurred in the first quarter of 2024	4
Incremental expense incurred in the second quarter of 2024	8




Adjustments	(4)
Cash payments	(17)
Accrued restructuring action balance as of June 30, 2024	$	51

NOTE 7. Supplemental Income (Loss) Statement Information

Other expense (income), net consists of the following:


	Three months ended June 30,		Six months ended June 30,
(Millions)	2024	2023	2024	2023