Derivatives (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Gains (losses) on derivative instruments designated as hedges

The amount of pretax gain (loss) recognized in other comprehensive income related to derivative instruments designated as cash flow hedges is provided in the following table.

	Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative
(Millions)	2021		2020		2019
Foreign currency forward/option contracts	$	108	$	(111)	$	96
Interest rate contracts	—		(2)		(122)
Total	$	108	$	(113)	$	(26)

Gain (loss) on derivative instruments designated as fair value hedges

The following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges:

	Carrying Value of the Hedged Liabilities				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities
Location on the Consolidated Balance Sheet (Millions)	2021		2020		2021		2020
Short-term borrowings and current portion of long-term debt	$	—	$	373	$	—	$	5
Long-term debt	997		225		(4)		6
Total	$	997	$	598	$	(4)	$	11

Gain (loss) on derivative and non-derivative instruments designated as net investment hedges

	Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income
(Millions)	2021		2020		2019
Foreign currency denominated debt	$	296	$	(351)	$	108
Foreign currency forward contracts	8		(1)		32
Total	$	304	$	(352)	$	140

Location in consolidated statement of income and pre-tax amounts recognized in income related to derivative instruments designated in cash flow or fair value hedging relationship

The location in the consolidated statement of income and pre-tax amounts recognized in income related to derivative instruments designated in a cash flow or fair value hedging relationship and for derivatives not designated as hedging instruments are as follows:

	Location and Amount of Gain (Loss) Recognized in Income
	Cost of sales						Other expense (income), net
(Millions)	2021		2020		2019		2021	2020	2019
Information regarding cash flow and fair value hedging relationships:
Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of cash flow or fair value hedges are recorded	$	18,795	$	16,605	$	17,136	165	366	531
Gain or (loss) on cash flow hedging relationships:
Foreign currency forward/option contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	(38)		80		74		—	—	—
Interest rate contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	—		—		—		(9)	(9)	(4)
Gain or (loss) on fair value hedging relationships:
Interest rate contracts:
Hedged items	—		—		—		16	4	(8)
Derivatives designated as hedging instruments	—		—		—		(16)	(4)	8
Information regarding derivatives not designated as hedging instruments:
Gain or (loss) on derivatives not designated as instruments:
Foreign currency forward/option contracts	5		2		2		(11)	43	(13)

Location and fair value of derivative instruments

The following tables summarize the fair value of 3M’s derivative instruments, excluding nonderivative instruments used as hedging instruments, and their location in the consolidated balance sheet. Notional amounts below are presented at period end foreign exchange rates, except for certain interest rate swaps, which are presented using the inception date’s foreign exchange rate.

	Gross Notional Amount		Assets					Liabilities
			Location	Fair Value Amount				Location	Fair Value Amount
(Millions)	2021	2020		2021		2020			2021		2020
Derivatives designated as hedging instruments
Foreign currency forward/option contracts	1,768	1,630	Other current assets	$	54	$	14	Other current liabilities	$	19	$	67
Foreign currency forward/option contracts	800	669	Other assets	41		10		Other liabilities	1		25
Interest rate contracts	—	403	Other current assets	—		7		Other current liabilities	—		—
Interest rate contracts	800	—	Other Assets	—		—		Other liabilities	9		—
Total derivatives designated as hedging instruments				95		31			29		92
Derivatives not designated as hedging instruments
Foreign currency forward/option contracts	3,731	3,166	Other current assets	24		13		Other current liabilities	4		14
Total derivatives not designated as hedging instruments				24		13			4		14
Total derivative instruments				$	119	$	44		$	33	$	106

Offsetting assets

Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties

	Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet				Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements								Net Amount of Derivative Assets
					Gross Amount of Eligible Offsetting Recognized Derivative Liabilities				Cash Collateral Received
(Millions)	2021		2020		2021		2020		2021		2020		2021		2020
Derivatives subject to master netting agreements	$	119	$	44	$	25	$	11	$	—	$	—	$	94	$	33
Derivatives not subject to master netting agreements	—		—										—		—
Total	$	119	$	44									$	94	$	33

Offsetting liabilities

Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties

	Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet				Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements								Net Amount of Derivative Liabilities
					Gross Amount of Eligible Offsetting Recognized Derivative Assets				Cash Collateral Received
(Millions)	2021		2020		2021		2020		2021		2020		2021		2020
Derivatives subject to master netting agreements	$	33	$	106	$	25	$	11	$	—	$	—	$	8	$	95
Derivatives not subject to master netting agreements	—		—										—		—
Total	$	33	$	106									$	8	$	95