Global Economic and Geopolitical Risks - Approximately 54% of the company's revenues are derived from outside the United States, exposing it to global economic and geopolitical risks[48] - The company is subject to risks from foreign currency exchange rate fluctuations, as 54% of its revenues are denominated in non-U.S. currencies[48] - The company is exposed to risks from global trade tensions, including those between the U.S. and China, which could adversely impact its operations[48] - The company suspended operations in Russia in March 2022 and completed the sale of related assets in June 2023[48] PFAS-Related Liabilities and Settlements - The company recorded a pre-tax charge of $0.8 billion in Q4 2022 related to exiting PFAS manufacturing by the end of 2025[50] - The company entered into a proposed class-action settlement in June 2023, agreeing to pay $10.5 billion to $12.5 billion to resolve PFAS-related drinking water claims[52] - The company recognized a pre-tax charge of $897 million in Q1 2018 related to a PFAS settlement with the State of Minnesota[52] - The company faces potential liabilities and compliance costs related to PFAS regulations and litigation, which could materially impact its financial position[50][52] - The company is working to discontinue the use of PFAS across its product portfolio by the end of 2025, with progress already made in certain product categories[50] - Manufactured PFAS products related costs were $1,267 million in 2023, compared to $970 million in 2022[88] - The company recorded a charge related to impairment of long-lived assets due to the exit from PFAS manufacturing, with fair values determined using discounted cash flow models[132] - The company recorded a $0.3 billion goodwill impairment charge in December 2022 related to the exit from PFAS manufacturing[200] Legal and Compliance Risks - The company faces compliance risks related to international laws and regulations, including the U.S. Foreign Corrupt Practices Act (FCPA), which could result in fines or penalties[54] - The company incurred $15.2 billion in pre-tax costs for significant litigation during 2023, including $10.5 billion related to the PWS Settlement and $4.3 billion related to the CAE Settlement[77] - The CAE Settlement involves a $6.0 billion contribution from 2023 to 2029, subject to participation thresholds and legal uncertainties[64] - Contingent liability claims and other liabilities include $7.5 billion and $3.5 billion related to the PWS Settlement and CAE Settlement as of December 31, 2023[212] Operational and Financial Performance - The company's growth depends on the timing and market acceptance of new product offerings, with no guarantee of commercial success[55] - Supply chain disruptions, material shortages, and cost fluctuations could materially impact the company's ability to fulfill customer obligations[57] - Operational execution risks, including workforce restructuring and productivity improvements, could negatively impact financial performance[60] - Total organic growth/productivity and other impacts resulted in a net year-on-year increase of $0.73 per share in 2023, driven by benefits from spending discipline, sourcing actions, restructuring, higher selling prices, and ongoing productivity actions[79] - Restructuring pre-tax charges were $437 million in 2023, compared to $59 million in 2022[82] - Foreign currency impacts increased operating loss by approximately $162 million in 2023, compared to a decrease of $271 million in 2022[82] - The effective tax rate for 2023 was 27.8% on a pre-tax loss, compared to 9.6% on pre-tax income in 2022[83] - Lower shares outstanding increased earnings per diluted share for 2023 and 2022[83] - Net costs for significant litigation in 2023 included $249 million for the Safety and Industrial business segment and $(1,258) million for the Transportation and Electronics business segment[86] - In 2023, 3M recorded a gain on final disposal of net assets in Russia, following a charge in 2022 related to impairment of these assets[89] - The adjusted effective tax rates for 2023, 2022, and 2021 were 17.5%, 17.5%, and 18.1%, respectively[83] - Total Company GAAP net sales for 2023 were $32.681 billion, a decrease of 4.5% compared to 2022[96] - Adjusted total Company (non-GAAP measures) net sales for 2023 were $31.392 billion, also a decrease of 4.5%[94] - Transportation and Electronics segment GAAP net sales for 2023 were $8.501 billion, a decrease of 4.5% compared to 2022[96] - Safety and Industrial segment GAAP net sales for 2023 were $10.956 billion, a decrease of 5.6% compared to 2022[96] - Health Care segment GAAP net sales for 2023 were $8.195 billion, a decrease of 2.8% compared to 2022[96] - Consumer segment GAAP net sales for 2023 were $5.026 billion, a decrease of 5.0% compared to 2022[96] - Total Company GAAP operating income (loss) for 2023 was $(9.128) billion, a significant decrease compared to $6.539 billion in 2022[96] - Adjusted total Company (non-GAAP measures) operating income for 2023 was $6.388 billion, a decrease of 20.3% compared to 2022[94] - Americas geographic area net sales for 2023 were $18.375 billion, a slight decrease of 0.1% compared to 2022[98] - Asia Pacific geographic area net sales for 2023 were $8.463 billion, a significant decrease of 14.5% compared to 2022[98] - Net sales cost of sales increased to 56.5% in 2023 from 56.2% in 2022, driven by investments in growth, productivity, and higher energy costs[101] - SG&A expenses increased to 26.5% of net sales in 2023, impacted by pre-tax charges of $10.3 billion and $4.2 billion related to legal settlements[101] - R&D expenses rose to 5.6% of net sales in 2023, reflecting continued investment in innovation and restructuring charges[101] - Safety and Industrial segment sales declined by 5.6% in 2023, with organic sales down 5.1% due to declines in personal safety and industrial adhesives[110][111] - Transportation and Electronics segment sales decreased by 4.5% in 2023, with organic sales down 3.5% due to weakness in consumer electronics[116][117] - Corporate and Unallocated operating expenses increased in 2023, driven by higher litigation and divestiture costs[107][108] - Effective tax rate rose to 27.8% in 2023 from 9.6% in 2022, influenced by changes in pre-tax income and tax provisions[102] - Income from unconsolidated subsidiaries increased to $18 million in 2023 from $11 million in 2022[103] - Net income attributable to noncontrolling interest increased to $16 million in 2023 from $14 million in 2022[104] - Business segment operating income decreased by 10.9% to $1,603 million in 2023, with margins impacted by a $0.8 billion asset impairment charge related to the exit from PFAS manufacturing[120] - Health Care sales decreased by 2.8% to $8,195 million in 2023, with organic sales growth of 0.7% offset by divestitures and translation impacts[121][122] - Consumer sales declined by 5.0% to $5,026 million in 2023, with organic sales down 4.7% due to reduced spending on discretionary items[124][125] - Total company employment decreased from 92,000 in 2022 to 85,000 in 2023, with reductions across all geographic regions[123][128] - Capital spending decreased by 7.7% to $1,615 million in 2023, with investments focused on manufacturing and sourcing capabilities[123][129] - Health Care operating income margins decreased due to manufacturing and supply chain headwinds, inflation impacts, and restructuring costs, partially offset by pricing and productivity actions[122] - Net sales for 2023 decreased to $32,681 million from $34,229 million in 2022, a decline of 4.5%[162] - Operating income (loss) for 2023 was $(9,128) million, compared to $6,539 million in 2022, a significant decline[162] - Net income (loss) attributable to 3M for 2023 was $(6,995) million, compared to $5,777 million in 2022[162] - Earnings (loss) per share attributable to 3M common shareholders — diluted was $(12.63) in 2023, compared to $10.18 in 2022[160] - Net cash provided by operating activities in 2023 was $6,680 million, compared to $5,591 million in 2022[178] - 3M re-consolidated Aearo Technology and related entities in Q2 2023 after court dismissal of bankruptcy proceedings, previously deconsolidated in Q2 2022[180] - Asset retirement obligation liability was $190 million at December 31, 2023, compared to $177 million at December 31, 2022[182] - Advertising and merchandising costs totaled $265 million in 2023, down from $323 million in 2022 and $327 million in 2021[184] - Research, development, and related expenses totaled $1.8 billion in 2023, compared to $1.9 billion in 2022 and $2.0 billion in 2021[184] - Research and development expenses specifically were $1.0 billion in 2023, down from $1.1 billion in 2022 and $1.2 billion in 2021[184] - Deferred revenue recognized during 2023 was approximately $520 million, compared to $500 million in 2022[193] - Operating lease revenue from durable medical devices was $590 million in 2023, $577 million in 2022, and $582 million in 2021[193] - Net sales for the Safety and Industrial Business Segment were $10.956 billion in 2023, down from $11.604 billion in 2022[193] - Net sales for the Health Care Business Group were $8.195 billion in 2023, compared to $8.427 billion in 2022[193] - Net sales for the Consumer Business Group were $5.026 billion in 2023, down from $5.292 billion in 2022[193] - Americas net sales were $18.375 billion in 2023, slightly lower than $18.400 billion in 2022[193] - Asia Pacific net sales were $8.463 billion in 2023, down from $9.901 billion in 2022[193] - China/Hong Kong net sales were $3.2 billion in 2023, compared to $3.8 billion in 2022[194] - The company completed the sale of its dental local anesthetic business for $60 million, resulting in a net pre-tax gain of $36 million[196] - The company expects to spin off its Health Care business in the first half of 2024, retaining an initial 19.9% ownership position[196] - Goodwill balance as of December 31, 2023, is $12.927 billion, with a $0.3 billion accumulated goodwill impairment loss[199] - Total gross carrying amount of acquired finite-lived intangible assets is $7.814 billion as of December 31, 2023[200] - Expected amortization expense for acquired amortizable intangible assets in 2024 is $453 million[202] - The company incurred a $437 million pre-tax charge in 2023 for restructuring actions impacting approximately 6,000 positions[203] - The company expects to impact approximately 8,500 positions worldwide with a pre-tax charge of $700 million to $900 million from 2023 to 2025[203] - The company recorded a $64 million pre-tax charge in 2023 for PFAS exit actions impacting approximately 550 positions[203] - Interest expense for 2023 is $942 million, including $566 million related to outstanding debt[206] - Property, plant, and equipment - net is $9.159 billion as of December 31, 2023[212] - Total cash dividends declared and paid per share in 2023 were $6.00, compared to $5.96 in 2022 and $5.92 in 2021[215] - Accumulated Other Comprehensive Income (Loss) balance at December 31, 2023, net of tax, was $(6,778) million[215] - Cash income tax payments, net of refunds, were $1,384 million in 2023, compared to $1,320 million in 2022 and $1,695 million in 2021[217] - Income (loss) before income taxes in 2023 was $(9,688) million, compared to $6,392 million in 2022 and $7,204 million in 2021[218] - Net deferred tax assets as of December 31, 2023, were $4,391 million, compared to $400 million in 2022[221] - The effective worldwide tax rate for 2023 was 27.8%, compared to 9.6% in 2022 and 17.8% in 2021[222] - The company had approximately $16.1 billion of undistributed earnings in its foreign subsidiaries as of December 31, 2023[224] - Earnings (loss) per share attributable to 3M common shareholders — diluted was $(12.63) in 2023, compared to $10.18 in 2022 and $10.12 in 2021[227] - Current marketable securities decreased from $238 million in 2022 to $53 million in 2023, a 77.7% decline[228] - Total marketable securities as of December 31, 2023 were $73 million, with $53 million due within one year[228] - Long-term debt decreased from $15,939 million in 2022 to $14,240 million in 2023, a 10.7% reduction[229] - Fixed-rate debt accounted for $13,027 million (91.5%) of total long-term debt in 2023, with an effective interest rate of 3.09%[230] - Floating-rate debt increased slightly from $1,201 million in 2022 to $1,213 million in 2023, with effective interest rate rising from 5.70% to 6.88%[230] - The company entered into a new $4.25 billion five-year revolving credit facility in May 2023, replacing previous credit agreements[232] - EBITDA to Interest Ratio was approximately 15 to 1 as of December 31, 2023, well above the required minimum of 3 to 1[232] - In 2023, the company repaid $500 million of fixed-rate registered notes, $650 million of fixed-rate medium-term notes, and €600 million of fixed-rate medium-term notes[234] - Employer contributions to U.S. defined contribution plans remained steady at $241 million in both 2023 and 2022[236] - International defined contribution plan contributions decreased from $117 million in 2021 to $108 million in both 2022 and 2023[236] - Benefit obligation at end of year for 2023 is $13,498 million, showing a slight decrease from $13,505 million in 2022[240] - Fair value of plan assets at end of year for 2023 is $12,348 million, compared to $12,648 million in 2022[240] - Funded status at end of year for 2023 is $(1,150) million, worsening from $(857) million in 2022[240] - Net actuarial loss for 2023 is $4,809 million, up from $4,616 million in 2022[240] - Discount rate for Qualified and Non-qualified Pension Benefits in the US for 2023 is 4.98%, down from 5.18% in 2022[243] - Compensation rate increase for Qualified and Non-qualified Pension Benefits in the US for 2023 is 3.77%, up from 3.37% in 2022[243] - Service cost for Qualified and Non-qualified Pension Benefits in the US for 2023 is $171 million, down from $256 million in 2022[244] - Interest cost for Qualified and Non-qualified Pension Benefits in the US for 2023 is $662 million, up from $417 million in 2022[244] - Expected return on plan assets for Qualified and Non-qualified Pension Benefits in the US for 2023 is $(974) million, slightly worse than $(963) million in 2022[244] - Total net periodic benefit cost for Qualified and Non-qualified Pension Benefits in the US for 2023 is $122 million, unchanged from 2022[244] Cybersecurity Risks - Cybersecurity risks, including data breaches and cyberattacks, could disrupt operations and lead to significant financial and reputational damage[58] - The company's cybersecurity risk management is overseen by the audit committee, with quarterly reports from the Chief Information and Digital Officer (CIDO) and Chief Information Security Officer (CISO)[67] - The company's CISO has over 25 years of experience in information security and is a certified information systems security professional[68] - As of the date of the Form 10-K, the company is not aware of any cybersecurity incidents that have materially affected its business strategy, results of operations, or financial condition[68] Acquisitions, Divestitures, and Strategic Alliances - Acquisitions, divestitures, and strategic alliances may affect future results, with integration challenges and unexpected liabilities posing risks[60] - The planned spin-off of the Health Care business faces risks, including delays, tax liabilities, and potential business disruption[65] - The company plans to spin off its Health Care business as a separate public company, expected to be completed in the first half of 2024[77] - The company expects to spin off its Health Care business in the first half of 2024, retaining an initial 19.9% ownership position[196] Pension and Postretirement Benefits - The company's defined benefit pension plans are exposed to financial

jetcityimage Overview The price has come down substantially on 3M and now has us all wondering if this makes for a good entry price. We've seen the price come down over 60% since the 2018 highs, but I still don't feel convinced that MMM deserves a spot in my portfolio. The weak earnings report, poor outlook for the next year, a bunch of lawsuits, and management's poor track history all make it very difficult to recommend MMM. The dividend payout has been sustainable at 65%, but I really do think the div ...

On the stock market, as in life generally, it's good to be the King.Correction: It's good to be one of the Kings. The Dividend Kings, that is -- the clutch of S&P 500 index stocks that have raised their dividends at least once every year for a minimum of 50 years in a row. Among this bunch is one of the sturdiest names in American industry, a company that has never stopped producing piles of cash that it uses to keep that payout growing. Read on to find out more about this monarch.A tarnished KingThis King ...

3M (MMM) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this maker of Post-it notes, industrial coatings and ceramics have returned -13%, compared to the Zacks S&P 500 composite's +3.3% change. During this period, the Zacks Diversified Operations industry, which 3M falls in, has lost 3.6%. The key question now is: What could be the stock's future directi ...

It isn't easy to know where to start with 3M's (MMM -0.97%) fourth-quarter earnings and full-year 2024 guidance. With the disappointing sales performance, the weak sales guidance, the margin outlook disappointment, or the earnings and cash flow guidance that leaves the company looking like an outstanding value stock? There's a lot to unpack here.3M's management disappoints on sales againThe industrial stock is down nearly 30% over the last decade and slightly more than 50% over the last five years. One of t ...

3M Co. MMM, +0.01% said Monday the litigation settlement it agreed to for selling potentially faulty earplugs to the military is on track to exceed the 98% participation threshold by the final registration date of March 25. The company has opted to pay $1 billion of the total of $6 billion in cash, instead of stock, a choice it was allowed once it reached the 98% participation threshold. “The strong support from more than 250,000 eligible claimants who have elected to participate in the settlement and rele ...

3M has elected to pay $1 billion in cash, instead of stock ST. PAUL, Minn., Jan. 29, 2024 /PRNewswire/ -- Today, 3M (NYSE: MMM) announced that claimant participation in the Combat Arms Earplugs litigation settlement is on track to exceed the 98% participation threshold set forth in the settlement agreement by the final registration date of March 25, 2024.  Under the terms of the settlement announced in August 2023, 3M agreed to pay a total of $6.0 billion to resolve the litigation over the time period of 2 ...

After 3M (MMM 0.01%) reported full-year 2023 earnings, its stock price fell roughly 10%. There were several problems in the update, notably including the company's 2024 outlook. But the big story here is uncertainty.Here's what investors need to be thinking about as they make a buy, sell, or hold decision regarding 3M.Sell 3MThe easiest takeaway from a deep dive into 3M is that conservative investors, particularly those who want to sleep well at night, should sell the stock. There are a few reasons for this ...

In this video, Motley Fool contributors Jason Hall and Tyler Crowe break down 3M (MMM 0.01%), beyond the litigation risks.*Stock prices used were from the afternoon of Jan. 23, 2023. The video was published on Jan. 27, 2023. ...

3M (MMM 0.01%) has faced a lot of challenges over the past few years that have weighed heavily on its share price, which has driven up its dividend yield. At around 6.3%, 3M currently offers one of the highest dividend yields in the venerable Dow Jones Industrial Average. On the bright side, 3M's financials have started to improve. Here's a look at whether that will be enough to save the Dow stock from cutting its big-time dividend.A year of improvement3M recently reported its fourth-quarter and full-year r ...