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Derivatives (Tables)
6 Months Ended
Jun. 30, 2022
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
Three months ended
June 30,
Six months ended
June 30,
(Millions)2022202120222021
Foreign currency forward/option contracts $128 $(26)$134 $40 
Interest rate contracts
Total $128 $(26)$134 $40 
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:
(Millions)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 SheetJune 30,
2022
December 31,
2021
June 30,
2022
December 31,
2021
Short-term borrowings and current portion of long-term debt$$$$
Long-term debt926997(75)(4)
Total $926$997$(75)$(4)
Gain (loss) on derivative and non-derivative instruments designated as net investment hedges The amount of pretax gain (loss) recognized in other comprehensive income related to derivative and nonderivative instruments designated as net investment hedges are as follows.
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income
Three months ended
June 30,
Six months ended
June 30,
(Millions)2022202120222021
Foreign currency denominated debt $133 $(55)$192 $112 
Foreign currency forward contracts9 (1)11 
Total $142 $(56)$203 $113 
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 cash flow or fair value hedging relationships and for derivatives not designated as hedging instruments are as follows:
Location and Amount of Gain (Loss) Recognized in Income
Three months ended June 30,Six months ended June 30,
Cost of salesOther expense (income), netCost of salesOther expense (income), net
(Millions)20222021202220212022202120222021
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 derivatives are recorded$5,093$4,719$50$33$9,919$9,244$88$82
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 income17 (10)26 (17)
Interest rate contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income(2)(2)(4)(4)
Gain or (loss) on fair value hedging relationships:
Interest rate contracts:
Hedged items23 (2)71 — 
Derivatives designated as hedging instruments(23)(71)— 
Information regarding derivatives not designated as hedging instruments:
Gain or (loss) on derivatives not designated as instruments:
Foreign currency forward/option contracts (46)— (1)(66)— 2428 
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 AmountAssetsLiabilities
 (Millions)LocationFair Value AmountLocationFair Value Amount
June 30,
2022
December 31,
2021
June 30,
2022
December 31,
2021
June 30,
2022
December 31,
2021
Derivatives designated as hedging instruments
Foreign currency forward/option contracts2,041 1,768 Other current assets$110 $54 Other current liabilities$3 $19 
Foreign currency forward/option contracts809 800 Other assets70 41 Other liabilities1 
Interest rate contracts 800 800 Other assets — Other liabilities80 
Total derivatives designated as hedging instruments 180 95 84 29 
Derivatives not designated as hedging instruments
Foreign currency forward/option contracts 4,749 3,731 Other current assets5 24 Other current liabilities41 
Total derivatives not designated as hedging instruments 5 24 41 
Total derivative instruments$185 $119 $125 $33 
Offsetting assets
Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties
Gross Amounts not Offset in the
Consolidated Balance Sheet that are Subject to Master Netting Agreements
 Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Recognized Derivative LiabilitiesCash
Collateral Received
Net Amount of
Derivative Assets
 (Millions)June 30, 2022December 31, 2021June 30, 2022December 31, 2021June 30, 2022December 31, 2021June 30,
2022
December 31, 2021
Derivatives subject to master netting agreements$185$119$39$25$$— $146$94 
Derivatives not subject to master netting agreements— 
Total$185$119$146$94 
Offsetting liabilities
Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties
Gross Amounts not Offset in the
Consolidated Balance Sheet that are Subject to Master Netting Agreements
 Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Recognized Derivative AssetsCash
Collateral Received
Net Amount of
Derivative Liabilities
 (Millions)June 30, 2022December 31, 2021June 30, 2022December 31, 2021June 30, 2022December 31, 2021June 30, 2022December 31, 2021
Derivatives subject to master netting agreements$124$33$39$25$$— $85$
Derivatives not subject to master netting agreements11— 
Total$125$33$86$