Derivatives (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of 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 March 31,
(Millions)	2023		2022
Foreign currency forward/option contracts	$	6	$	6
Interest rate contracts	—		—
Total	$	6	$	6

Schedule of 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 active fair value hedges, as well as remaining amounts for discontinued 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 Sheet	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Long-term debt	$	916	$	903	$	(86)	$	(98)

Schedule of gain (loss) on derivative and non-derivative instruments designated as net investment hedges

	Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income
	Three months ended March 31,
(Millions)	2023		2022
Foreign currency denominated debt	$	(43)	$	59
Foreign currency forward contracts	(2)		2
Total	$	(45)	$	61

Schedule of 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 March 31,
	Cost of sales				Other expense (income), net
(Millions)	2023		2022		2023		2022
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	$	4,613	$	4,826	$	52	$	38
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	43		9		—		—
Interest rate contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	—		—		(2)		(2)
Gain or (loss) on fair value hedging relationships:
Interest rate contracts:
Hedged items	—		—		(12)		48
Derivatives designated as hedging instruments	—		—		12		(48)
Information regarding derivatives not designated as hedging instruments:
Gain or (loss) on derivatives not designated as instruments:
Foreign currency forward/option contracts	8		(20)		(26)		25

Schedule of 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
(Millions)					Location	Fair Value Amount				Location	Fair Value Amount
	March 31, 2023		December 31, 2022			March 31, 2023		December 31, 2022			March 31, 2023		December 31, 2022
Derivatives designated as hedging instruments
Foreign currency forward/option contracts	$	2,525	$	2,368	Other current assets	$	72	$	89	Other current liabilities	$	31	$	27
Foreign currency forward/option contracts	763		835		Other assets	43		55		Other liabilities	9		9
Interest rate contracts	800		800		Other assets	—		—		Other liabilities	90		102
Total derivatives designated as hedging instruments						115		144			130		138
Derivatives not designated as hedging instruments
Foreign currency forward/option contracts	3,563		2,816		Other current assets	20		73		Other current liabilities	20		4
Total derivatives not designated as hedging instruments						20		73			20		4
Total derivative instruments						$	135	$	217		$	150	$	142

Schedule of 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
					Gross Amount of Eligible Offsetting Recognized Derivative Liabilities				Cash Collateral Received				Net Amount of Derivative Assets
(Millions)	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Derivatives subject to master netting agreements	$	135	$	217	$	49	$	40	$	—	$	—	$	86	$	177
Derivatives not subject to master netting agreements	—		—										—		—
Total	$	135	$	217									$	86	$	177

Schedule of 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
					Gross Amount of Eligible Offsetting Recognized Derivative Assets				Cash Collateral Received				Net Amount of Derivative Liabilities
(Millions)	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Derivatives subject to master netting agreements	$	150	$	142	$	49	$	40	$	—	$	—	$	101	$	102
Derivatives not subject to master netting agreements	—		—										—		—
Total	$	150	$	142									$	101	$	102