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Long-Term Debt and Short-Term Borrowings
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Long-Term Debt and Short-Term Borrowings
NOTE 13. Long-Term Debt and Short-Term Borrowings
The following debt tables reflect effective interest rates, which include the impact of interest rate swaps, as of December 31, 2023. If the debt was issued on a combined basis, the debt has been separated to show the impact of the fixed versus floating effective interest rates. Carrying value includes the impact of debt issuance costs and fair value hedging activity. Long-term debt and short-term borrowings as of December 31 consisted of the following:
Long-Term Debt:
(Millions)Currency/ Fixed vs. FloatingEffective Interest RateFinal Maturity DateCarrying Value
Description / 2023 Principal Amount20232022
Registered note (repaid in 2023)
USD Fixed— %2023$— $500 
Medium-term note (repaid in 2023)
USD Fixed— %2023— 650 
Medium-term note (repaid in 2023)
EUR Fixed— %2023— 639 
Medium-term note ($300 million)
USD Fixed3.30 %2024300 300 
Medium-term note ($500 million)
USD Fixed2.98 %2024500 501 
Medium-term note ($300 million)
USD Floating5.96 %2024300 300 
Registered note ($750 million)
USD Fixed2.12 %2025748 747 
Registered note ($500 million)
USD Fixed2.67 %2025499 499 
Medium-term note ($550 million)
USD Fixed3.04 %2025549 549 
Medium-term note ($650 million)
USD Fixed2.37 %2026647 646 
Medium-term note (€750 million)
EUR Fixed1.65 %2026821 792 
Floating rate note ($19 million)
USD Floating5.22 %202718 18 
Medium-term note ($850 million)
USD Fixed2.95 %2027846 845 
30-year debenture ($220 million)
USD Fixed6.44 %2028223 223 
Floating rate note ($150 million)
USD Floating8.08 %2028131 129 
Floating rate note ($150 million)
USD Floating8.03 %2028132 129 
Floating rate note ($250 million)
USD Floating7.62 %2028216 211 
Floating rate note ($150 million)
USD Floating7.57 %2028130 127 
Floating rate note ($100 million)
USD Floating7.66 %202886 84 
Medium-term note ($300 million)
USD Fixed3.62 %2028598 598 
Medium-term note ($800 million)
USD Fixed3.38 %2029798 797 
Registered note ($1 billion)
USD Fixed2.50 %2029991 989 
Registered note ($600 million)
USD Fixed3.09 %2030597 596 
Medium-term note (€500 million)
EUR Fixed1.90 %2030546 526 
Medium-term note (€500 million)
EUR Fixed1.54 %2031549 530 
30-year bond ($555 million)
USD Fixed5.73 %2037552 552 
Floating rate note ($52 million)
USD Floating5.31 %204052 52 
Floating rate note ($95 million)
USD Floating5.31 %204194 96 
Medium-term note ($325 million)
USD Fixed4.05 %2044316 315 
Floating rate note ($53 million)
USD Floating5.31 %204453 53 
Medium-term note ($500 million)
USD Fixed3.37 %2046479 478 
Medium-term note ($500 million)
USD Fixed3.68 %2047493 492 
Medium-term note ($650 million)
USD Fixed4.07 %2048639 638 
Medium-term note ($500 million)
USD Fixed3.78 %2048504 504 
Registered note ($500 million)
USD Fixed3.37 %2049486 486 
Registered note ($350 million)
USD Fixed3.72 %2050346 346 
Other borrowingsVarious0.11 %2024-20291 2 
Total long-term debt14,240 15,939 
Less: current portion of long-term debt1,152 1,938 
Long-term debt (excluding current portion)$13,088 $14,001 
Post-Swap Borrowing (Long-Term Debt, Including Current Portion):
20232022
(Millions)Carrying ValueEffective Interest RateCarrying ValueEffective Interest Rate
Fixed-rate debt$13,027 3.09 %$14,738 2.93 %
Floating-rate debt1,213 6.88 %1,201 5.70 %
Total long-term debt, including current portion$14,240 $15,939 
Short-Term Borrowings and Current Portion of Long-Term Debt:
Effective Interest RateCarrying Value
(Millions)20232022
Current portion of long-term debt3.94 %$1,152 $1,938 
U.S. dollar commercial paper5.65 %1,795 — 
Total short-term borrowings and current portion of long-term debt$2,947 $1,938 
Other short-term borrowings primarily consisted of bank borrowings by international subsidiaries.
Future Maturities of Long-term Debt: Maturities of long-term debt in the table below reflect the impact of put provisions associated with certain debt instruments and are net of the unamortized debt issue costs such that total maturities equal the carrying value of long-term debt as of December 31, 2023. The maturities of long-term debt for the periods subsequent to December 31, 2023 are as follows (in millions):
20242025202620272028
After 2028
Total
$1,152$1,867$1,563$846$818$7,994$14,240
As a result of put provisions associated with certain debt instruments, long-term debt payments due in 2024 include floating rate notes totaling $53 million (classified as current portion of long-term debt).
Credit Facilities: In May 2023, 3M entered into a $4.25 billion five-year revolving credit facility expiring in 2028; the facility was amended in July and September 2023. The revolving credit agreement includes a provision under which 3M may request an increase of up to $1.0 billion (at lender’s discretion), bringing the total facility up to $5.25 billion. The agreement replaced the amended and restated $3.0 billion, five-year revolving credit agreement and the $1.25 billion 364-day credit facility that would have expired in November 2024 and November 2023, respectively. The credit facility was undrawn at December 31, 2023. Under the $4.25 billion credit facility, the Company is required to maintain its EBITDA to Interest Ratio as of the end of each fiscal quarter at not less than 3.0 to 1. This is calculated (based on amounts defined in the amended agreement) as the ratio of consolidated total EBITDA for the four consecutive quarters then ended to total interest expense on all funded debt for the same period. At December 31, 2023, this ratio was approximately 15 to 1. Debt covenants do not restrict the payment of dividends.
Other Credit Facilities: The Company also had an additional $355 million in stand-alone letters of credit and bank guarantees issued and outstanding at December 31, 2023. These instruments are utilized in connection with normal business activities.
Long-Term Debt Issuances and Fixed-to-Floating Interest Rate Swaps: During 2021, 3M entered into interest rate swaps with an aggregate notional amount of $800 million. These swaps converted $500 million and $300 million of 3M’s $1 billion and $650 million principal amount of fixed rate notes due 2049 and 2050, respectively, into floating rate debt for the portion of their terms through mid-2028 with an original interest rate based on a three-month LIBOR index, which has since been amended to a rate based on a SOFR index.
Long-Term Debt Maturities and Extinguishments: In 2023, 3M repaid $500 million aggregate principal amount of fixed-rate registered notes that matured, $650 million aggregate principal amount of fixed-rate medium-term notes that matured and 600 million euros aggregate principal amount of fixed-rate medium-term notes that matured.
In 2022, 3M repaid 500 million euros aggregate principal amount of fixed-rate medium-term notes that matured and $600 million aggregate principal amount of fixed-rate medium-term notes that matured.
In 2021, 3M repaid 600 million euros aggregate principal amount of Eurobonds that matured and redeemed $450 million principal amount of 2.75% notes due 2022 via a make-whole-call offer.
Floating Rate Notes: At various times, 3M has issued floating rate notes containing put provisions. 3M would be required to repurchase these securities at various prices ranging from 99 percent to 100 percent of par value according to the reduction schedules for each security. In December 2004, 3M issued a forty-year $60 million floating rate note, with a rate based on a floating LIBOR index (noting contracts have been modified to apply a new reference rate where applicable). Under the terms of this floating rate note due in 2044, holders have an annual put feature at 100 percent of par value from 2014 and every anniversary thereafter until final maturity. Under the terms of the floating rate notes due in 2027, 2040 and 2041, holders have put options that commence ten years from the date of issuance and each third anniversary thereafter until final maturity at prices ranging from 99 percent to 100 percent of par value. For the periods presented, 3M was required to repurchase an immaterial amount of principal on the aforementioned floating rate notes.