Restructuring Actions

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

2022 and 2021 Restructuring Actions:

Operational/Marketing Capability Restructuring:

As described in Note 5 to the Consolidated Financial Statements in 3M's Current Report on Form 8-K dated April 26, 2022 (which updated 3M’s 2021 Annual Report on Form 10-K), in late 2020, 3M announced it would undertake certain actions beginning in the fourth quarter of 2020 to further enhance its operations and marketing capabilities to take advantage of certain global market trends while de-prioritizing investments in slower-growth end markets. In 2021, management approved and committed to undertake additional actions under this initiative resulting in a 2021 pre-tax charge of $124 million. In the first quarter of 2022, management approved and committed to undertake the remaining actions under this initiative resulting in a pre-tax charge of $18 million. This initiative, begun in 2020 and ending with committed first quarter 2022 actions, impacted approximately 3,100 positions worldwide with a pre-tax charge of approximately $280 million over that period. The related restructuring charges for periods presented were recorded in the income statement as follows:


	Nine months ended September 30,
(Millions)	2022		2021
Cost of sales	$	—	$	18
Selling, general and administrative expenses	12		74
Research, development and related expenses	6		15
Total operating income impact	$	18	$	107

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


	Nine months ended September 30,
	Employee-Related
(Millions)	2022		2021
Safety and Industrial	$	2	$	28
Transportation and Electronics	4		23
Health Care	2		18
Consumer	2		6
Corporate and Unallocated	8		32
Total Operating Expense	$	18	$	107

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


(Millions)	Employee-Related
Accrued restructuring action balance as of December 31, 2021	$	87
Incremental expense incurred in the first quarter of 2022	18
Cash payments	(84)
Adjustments	(9)
Accrued restructuring action balances as of June 30, 2022	$	12

Remaining activities related to this restructuring were largely completed in the third quarter of 2022.

Divestiture-Related Restructuring

During the third quarter of 2022, following the Food Safety Division split-off transaction and combination with Neogen completed in September 2022 (see Note 3) management approved and committed to undertake certain restructuring actions addressing corporate functional costs across 3M in relation to the magnitude of amounts previously allocated to the divested business.

These actions affected approximately 850 positions worldwide and resulted in a third quarter 2022 pre-tax charge of $41 million, within Corporate and Unallocated. The divestiture-related restructuring actions were recorded in the income statement as follows:


(Millions)	Third Quarter 2022
Cost of sales	$	3
Selling, general and administrative expenses	36
Research, development and related expenses	2
Total operating income impact	$	41

Divestiture-related restructuring actions, including cash impacts, follow:


(Millions)	Employee-Related
Expense incurred in the third quarter of 2022	41
Cash payments	(3)
Accrued restructuring action balances as of September 30, 2022	$	38

Remaining activities related to this divestiture-related restructuring are expected to be largely completed through the first half of 2023.