Restructuring Actions

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring Actions

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

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