Quarterly Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Data (Unaudited)

Quarterly Data (Unaudited)

NOTE 20. Quarterly Data (Unaudited)

(Millions, except per-share amounts)	First		Second		Third		Fourth		Year
2019	Quarter		Quarter		Quarter		Quarter		2019
Net sales	$	7,863	$	8,171	$	7,991	$	8,111	$	32,136
Cost of sales		4,310		4,313		4,188		4,325		17,136
Net income including noncontrolling interest		893		1,131		1,588		970		4,582
Net income attributable to 3M		891		1,127		1,583		969		4,570
Earnings per share attributable to 3M common shareholders - basic		1.54		1.95		2.75		1.68		7.92
Earnings per share attributable to 3M common shareholders - diluted		1.51		1.92		2.72		1.66		7.81

(Millions, except per-share amounts)	First		Second		Third		Fourth		Year
2018	Quarter		Quarter		Quarter		Quarter		2018
Net sales	$	8,278	$	8,390	$	8,152	$	7,945	$	32,765
Cost of sales		4,236		4,227		4,159		4,060		16,682
Net income including noncontrolling interest		606		1,862		1,546		1,349		5,363
Net income attributable to 3M		602		1,857		1,543		1,347		5,349
Earnings per share attributable to 3M common shareholders - basic		1.01		3.14		2.64		2.32		9.09
Earnings per share attributable to 3M common shareholders - diluted		0.98		3.07		2.58		2.27		8.89

Gross profit is calculated as net sales minus cost of sales.

In 2019, the Company recorded significant litigation-related charges related to PFAS (certain perfluorinated compounds) matters and coal mine dust respirator mask lawsuits as further described in Note 16, which reduced net income by $590 million, or $1.01 per diluted share, of which $424 million, or $0.72 per diluted share occurred in the first quarter and $166 million, or $0.29 per diluted share occurred in the fourth quarter. In the second quarter of 2019, the Company recorded a non-operating charge related to the deconsolidation of its Venezuelan subsidiary, which reduced net income by $162 million, or $0.28 per diluted share.

In the first quarter of 2018, the Company recorded significant litigation-related charges related to the previously disclosed resolution of the State of Minnesota Natural Resource Damages (NRD) lawsuit, which reduced net income by $710 million, or $1.16 per diluted share. Refer to Note 16 for additional details. Additionally, the first quarter of 2018 was impacted by a measurement period adjustment related to the enactment of the Tax Cuts and Jobs Act (TCJA), which reduced net income by $217 million, or $0.36 per diluted share. Refer to Note 10 for additional details.

In the fourth quarter of 2018, the Company’s ongoing IRS examination under the Compliance Assurance Process (CAP) and new guidance released under the Tax Cuts and Jobs Act resulted in a charge that reduced net income by $60 million, or $0.11 per diluted share. Additionally, in the fourth quarter of 2018, the Company finalized the tax impact related to TCJA with a reversal of previously recorded tax expense that increased net income by $41 million, or $0.07 per diluted share. On a combined basis, these items, including the impacts detailed above for the first quarter of 2018, reduced net income by $946 million, or $1.57 per diluted share in 2018.