Restructuring Actions

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

2020 through 2022 Restructuring Action

Operational/Marketing Capability Restructuring:

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, resulting in a pre-tax charge of $137 million. 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, beginning 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:



(Millions)	2022		2021		2020
Cost of sales	$	—	$	19	$	51
Selling, general and administrative expenses	12		88		79
Research, development and related expenses	6		17		7
Total operating income impact	$	18	$	124	$	137

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



	2022		2021		2020
(Millions)	Employee-Related		Employee-Related		Employee Related		Asset-Related and Other		Total

Safety and Industrial	$	2	$	30	$	36	$	7	$	43
Transportation and Electronics	4		24		16		12		28
Health Care	2		21		23		3		26
Consumer	2		7		10		1		11
Corporate and Unallocated	8		42		16		13		29
Total Operating Expense	$	18	$	124	$	101	$	36	$	137

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


(Millions)	Employee-Related		Asset-Related and Other		Total
Expense incurred in the fourth quarter of 2020	$	101	$	36	$	137
Non-cash changes	—		(36)		(36)
Accrued restructuring action balances as of December 31, 2020	101		—		101
Incremental expense incurred in 2021	124		—		124
Cash payments	(127)		—		(127)
Adjustments	(11)		—		(11)
Accrued restructuring action balance as of December 31, 2021	87		—		87
Incremental expense incurred in the first quarter of 2022	18		—		18
Cash payments	(84)		—		(84)
Adjustments	(9)		—		(9)
Accrued restructuring action balances as of June 30, 2022	$	12	$	—	$	12

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

2022 Restructuring Actions:

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)	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	(31)
Accrued restructuring action balances as of December 31, 2022	$	10

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

2020 Restructuring Actions:

Divestiture-Related Restructuring

During the second quarter of 2020, following the divestiture of substantially all of the drug delivery business (see Note 3) management approved and committed to undertake certain restructuring actions addressing corporate functional costs and manufacturing footprint across 3M in relation to the magnitude of amounts previously allocated/burdened to the divested business. These actions affected approximately 1,300 positions worldwide and resulted in a second quarter 2020 pre-tax charge of $55 million, within Corporate and Unallocated. The divestiture-related restructuring actions were recorded in the income statement as follows:


(Millions)	2020
Cost of sales	$	42
Selling, general and administrative expenses	12
Research, development and related expenses	1
Total operating income impact	$	55

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


(Millions)	Employee-Related		Asset-Related and Other		Total
Expense incurred in the second quarter of 2020	$	32	$	23	$	55
Non-cash changes	—		(14)		(14)
Cash payments	(14)		—		(14)
Adjustments	(3)		—		(3)
Accrued restructuring action balance as of December 31, 2020	15		9		24
Cash Payments	(5)		—		(5)
Adjustments	(1)		—		(1)
Accrued restructuring action balance as of June 30, 2021	$	9	$	9	$	18

Remaining activities related to this divestiture-related restructuring were largely completed in the third quarter of 2021.

Other Restructuring

Additionally, in the second quarter of 2020, management approved and committed to undertake certain restructuring actions addressing structural enterprise costs and operations in certain end markets as a result of the COVID-19 pandemic and related economic impacts. These actions affected approximately 400 positions worldwide and resulted in a second quarter 2020 pre-tax charge of $58 million. The restructuring charges were recorded in the income statement as follows:


(Millions)	2020
Cost of sales	$	13
Selling, general and administrative expenses	37
Research, development and related expenses	8
Total operating income impact	$	58

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


	2020
(Millions)	Employee-Related		Asset-Related and Other		Total
Safety and Industrial	$	7	$	—	$	7
Transportation and Electronics	11		—		11
Health Care	12		—		12
Consumer	5		—		5
Corporate and Unallocated	—		23		23
Total Operating Expense	$	35	$	23	$	58

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


(Millions)	Employee-Related		Asset-Related		Total
Expense incurred in the second quarter of 2020	$	35	$	23	$	58
Non-cash changes	—		(23)		(23)
Cash payments	(2)		—		(2)
Adjustments	(9)		—		(9)
Accrued restructuring action balances as of December 31, 2020	24		—		24
Cash Payments	(4)		—		(4)
Adjustments	(9)		—		(9)
Accrued restructuring action balances as of March 31, 2021	$	11	$	—	$	11

Remaining activities related to this restructuring were largely completed in the second quarter of 2021.