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Business Segments and Geographic Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Business Segments and Geographic Information
NOTE 21. Business Segments and Geographic Information
3M’s businesses are organized, managed and internally grouped into segments based on differences in markets, products, technologies and services. 3M manages its operations in four business segments: Safety and Industrial; Transportation and Electronics; Health Care; and Consumer. 3M’s four business segments bring together common or related 3M technologies, enhancing the development of innovative products and services and providing for efficient sharing of business resources. In July 2022, 3M announced its intention to spin off the Health Care business as a separate public company (see Note 3 for additional information). 3M is an integrated enterprise characterized by substantial intersegment cooperation, cost allocations and inventory transfers. Therefore, management does not represent that these segments, if operated independently, would report the operating income information shown.
3M discloses business segment operating income (loss) as its measure of segment profit/loss, reconciled to both total 3M operating income (loss) and income before taxes. Business segment operating income (loss) excludes certain expenses and income that are not allocated to business segments (as described below in “Corporate and Unallocated”).
Effective in the first quarter of 2023, the measure of segment operating performance and segment composition used by 3M’s chief operating decision maker (CODM) changed and, as a result, 3M’s disclosed measure of segment profit/loss (business segment operating income (loss)) was updated. The change to business segment operating income (loss) aligns with the update to how the CODM assesses performance and allocates resources for the Company’s business segments. The changes included the items described below. The financial information presented herein reflects the impact of these business segment reporting changes for all periods presented.
Reflecting gains/losses from sale of property, plant and equipment (PPE) and other assets within Corporate and Unallocated Change
3M updated its business segment operating performance measure to reflect all gains/losses from sales of PPE and other assets within Corporate and Unallocated. Previously, certain of these gains/losses were included in 3M’s business segments’ operating performance.
Movement of certain businesses between segments
The businesses associated with two groups of products (each with approximately $25 million in annual sales) were realigned with one moving from the Consumer business segment to the Health Care business segment and the other moving from the Health Care business segment to the Consumer business segment.
Also effective in the first quarter of 2023, the Consumer business segment re-aligned from four divisions to the following three divisions: Home, Health and Auto Care; Construction and Home Improvement Markets; and Stationery and Office.
Business Segment Products
Business SegmentRepresentative revenue-generating activities, products or services
Safety and Industrial
•Industrial abrasives and finishing for metalworking applications
•Autobody repair solutions
•Closure systems for personal hygiene products, masking, and packaging materials
•Electrical products and materials for construction and maintenance, power distribution and electrical original equipment manufacturers (OEMs)
•Structural adhesives and tapes
•Respiratory, hearing, eye and fall protection solutions
•Natural and color-coated mineral granules for shingles
Transportation and Electronics
•Advanced ceramic solutions
•Attachment/bonding, films, sound and temperature management for transportation vehicles
•Premium large format graphic films for advertising and fleet signage
•Light management films and electronics assembly solutions
•Chip packaging and interconnection solutions
•Semiconductor production materials
•Solutions for data centers
•Reflective signage for highway, and vehicle safety
Health Care
•Health care procedure coding and reimbursement software
•Skin, wound care, and infection prevention products and solutions
•Dentistry and orthodontia solutions
•Filtration and purification systems
Consumer
•Consumer bandages, braces, supports and consumer respirators
•Cleaning products for the home
•Retail abrasives, paint accessories, car care DIY products, picture hanging and consumer air quality solutions
•Stationery products
Some seasonality impacts this business segment related to back-to-school, generally in the third quarter of each year
Business Segment Information
Net Sales (Millions)
202320222021
Safety and Industrial$10,956 $11,604 $11,981 
Transportation and Electronics8,501 8,902 9,262 
Health Care8,195 8,427 8,601 
Consumer5,026 5,292 5,509 
Corporate and Unallocated3 4 2 
Total Company$32,681 $34,229 $35,355 
Operating Performance (Millions)
202320222021
Safety and Industrial$2,324 $1,135 $2,460 
Transportation and Electronics1,312 973 1,869 
Health Care1,603 1,799 2,034 
Consumer904 978 1,164 
Total business segment operating income (loss)6,143 4,885 7,527 
Corporate and Unallocated
Corporate special items:
Net costs for significant litigation(14,785)(877)214 
Divestiture costs (496)(60)— 
Gain on business divestitures 36 2,724 — 
Divestiture-related restructuring actions— (41)— 
Russia exit (charges) benefits18 (109)— 
Total corporate special items(15,227)1,637 214 
Other corporate (expense) income - net
(44)17 (372)
Total Corporate and Unallocated(15,271)1,654 (158)
Total Company operating income (loss)(9,128)6,539 7,369 
Other expense/(income), net560 147 165 
Income (loss) before income taxes$(9,688)$6,392 $7,204 
AssetsDepreciation & AmortizationCapital Expenditures
(Millions)20232022202320222021202320222021
Safety and Industrial$11,212 $11,774 $530 $566 $593 $285 $512 $339 
Transportation and Electronics6,826 6,485 537 410 419 723 562 453 
Health Care13,315 13,364 597 623 636 228 272 249 
Consumer2,625 2,774 160 148 147 105 146 109 
Corporate and Unallocated16,602 12,058 163 84 120 274 257 453 
Total Company$50,580 $46,455 $1,987 $1,831 $1,915 $1,615 $1,749 $1,603 
Assets subject to attribution to business segments largely include accounts receivable; inventories; property, plant and equipment; goodwill; intangible assets; and certain limited other assets. All other items are reflected in Corporate and Unallocated. Accounts receivable and inventory are attributed based on underlying sales or activity. Property, plant and equipment are attributed to a particular business segment based on that item’s primary user while certain items such as corporate-shared headquarters/administrative centers, laboratories, distribution centers and enterprise software systems are reflected in Corporate and Unallocated. Intangible assets and goodwill are largely directly associated with a particular reporting unit and attributed on that basis. Business segment depreciation reflected above is based on the underlying usage of assets (while the particular asset itself may be entirely reflected within a different business segment’s asset balance as its primary user). This depreciation also includes allocated depreciation associated with a number of the assets reflected in Corporate and Unallocated as described above.
In 2023, information relative to the attribution of certain assets (limited elements of working capital in particular instances) to business segment assets reviewed by 3M’s CODM changed. The impact of these changes is reflected in the above table for all periods presented.
Corporate and Unallocated: Corporate and Unallocated operating income (loss) includes “corporate special items” and “other corporate expense-net”. Corporate special items include net costs for significant litigation impacting operating income (loss) associated with PFAS-related other environmental and Combat Arms Earplugs matters. In addition, during the voluntary chapter 11 bankruptcy period (which began in July 2022 and ended in June 2023—see Note 18), costs associated with the Aearo portion of respirator mask/asbestos matters were also included in corporate special items. Prior to the bankruptcy, costs associated with Combat Arms Earplugs matters were not included in the Corporate net costs for significant litigation special item, instead being reflected in the Safety and Industrial business segment. Corporate special items also include divestiture costs, gain/loss on business divestitures (see Note 3), divestiture-related restructuring costs (see Note 5), and Russia exit costs/ benefits (see Note 17). Divestiture costs include costs related to separating and divesting substantially an entire business segment of 3M following public announcement of its intended divestiture. Other corporate expense-net includes items such as net costs related to limited unallocated corporate staff and centrally managed material resource centers of expertise costs, corporate philanthropic activity, gains/losses from sales of PPE and other assets, and other net costs that 3M may choose not to allocate directly to its business segments. Other corporate expense-net also includes costs and income during the term of transition supply, manufacturing, and service arrangements with divested businesses. Items classified as revenue from this activity are included in Corporate and Unallocated net sales. Because Corporate and Unallocated includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis.
Geographic Information: Geographic area information is used by the Company as a secondary performance measure to manage its businesses. Export sales and certain income and expense items are generally reported within the geographic area where the final sales to 3M customers are made. Refer to Note 2 for geographic net sales.
Property, Plant and Equipment - net
(Millions)20232022
Americas$6,179 $6,066 
Asia Pacific1,267 1,389 
Europe, Middle East and Africa1,713 1,723 
Total Company$9,159 $9,178 
United States net property, plant and equipment (PPE) was $5,766 million and $5,662 million at December 31, 2023 and 2022, respectively. China/Hong Kong net PPE was $486 million and $518 million at December 31, 2023 and 2022, respectively.