3M Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME (LOSS)
(Millions, except per-share amounts)
(Unaudited)
|
Three months ended |
Nine months ended |
|||||||||||
|
September 30, |
September 30, |
|||||||||||
|
2023 |
2022 |
2023 |
2022 |
|||||||||
|
Net sales |
$ |
8,312 |
$ |
8,619 |
$ |
24,668 |
$ |
26,150 |
||||
|
Operating expenses |
||||||||||||
|
Cost of sales |
4,580 |
4,728 |
13,799 |
14,647 |
||||||||
|
Selling, general and administrative expenses |
5,992 |
1,998 |
19,901 |
6,903 |
||||||||
|
Research, development and related expenses |
430 |
461 |
1,375 |
1,417 |
||||||||
|
(Gain) loss on business divestitures |
(36) |
(2,724) |
(36) |
(2,724) |
||||||||
|
Total operating expenses |
10,966 |
4,463 |
35,039 |
20,243 |
||||||||
|
Operating income (loss) |
(2,654) |
4,156 |
(10,371) |
5,907 |
||||||||
|
Other expense (income), net |
200 |
24 |
317 |
112 |
||||||||
|
Income (loss) before income taxes |
||||||||||||
|
(2,854) |
4,132 |
(10,688) |
5,795 |
|||||||||
|
Provision (benefit) for income taxes |
(781) |
271 |
(2,755) |
550 |
||||||||
|
Income (loss) of consolidated group |
(2,073) |
3,861 |
(7,933) |
5,245 |
||||||||
|
Income (loss) from unconsolidated subsidiaries, net of taxes |
2 |
2 |
7 |
3 |
||||||||
|
Net income (loss) including noncontrolling interest |
(2,071) |
3,863 |
(7,926) |
5,248 |
||||||||
|
Less: Net income (loss) attributable to noncontrolling interest |
4 |
4 |
14 |
12 |
||||||||
|
Net income (loss) attributable to 3M |
||||||||||||
|
$ |
(2,075) |
$ |
3,859 |
$ |
(7,940) |
$ |
5,236 |
|||||
|
Weighted average 3M common shares outstanding - basic |
554.3 |
568.8 |
553.7 |
570.7 |
||||||||
|
Earnings (loss) per share attributable to 3M common shareholders - |
$ |
(3.74) |
$ |
6.79 |
$ |
(14.34) |
$ |
9.18 |
||||
|
basic |
||||||||||||
|
Weighted average 3M common shares outstanding - diluted |
554.3 |
570.0 |
553.7 |
572.6 |
||||||||
|
Earnings (loss) per share attributable to 3M common shareholders - |
$ |
(3.74) |
$ |
6.77 |
$ |
(14.34) |
$ |
9.15 |
||||
|
diluted |
1
3M Company and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in millions)
(Unaudited)
|
September 30, |
December 31, |
|||||
|
2023 |
2022 |
|||||
|
ASSETS |
||||||
|
Current assets |
||||||
|
Cash and cash equivalents |
$ |
5,140 |
$ |
3,655 |
||
|
Marketable securities - current |
73 |
238 |
||||
|
Accounts receivable - net |
4,852 |
4,532 |
||||
|
Inventories |
5,065 |
5,372 |
||||
|
Prepaids |
578 |
435 |
||||
|
Other current assets |
490 |
456 |
||||
|
Total current assets |
16,198 |
14,688 |
||||
|
Property, plant and equipment - net |
9,004 |
9,178 |
||||
|
Operating lease right of use assets |
782 |
829 |
||||
|
Goodwill and intangible assets - net |
17,045 |
17,489 |
||||
|
Other assets |
6,592 |
4,271 |
||||
|
Total assets |
$ |
49,621 |
$ |
46,455 |
||
|
LIABILITIES AND EQUITY |
||||||
|
Current liabilities |
||||||
|
Short-term borrowings and current portion of long-term debt |
$ |
3,137 |
$ |
1,938 |
||
|
Accounts payable |
3,104 |
3,183 |
||||
|
Accrued payroll |
905 |
692 |
||||
|
Accrued income taxes |
220 |
259 |
||||
|
Operating lease liabilities - current |
234 |
261 |
||||
|
Other current liabilities |
7,866 |
3,190 |
||||
|
Total current liabilities |
15,466 |
9,523 |
||||
|
Long-term debt |
12,876 |
14,001 |
||||
|
Other liabilities |
16,548 |
8,161 |
||||
|
Total liabilities |
44,890 |
31,685 |
||||
|
Total equity |
4,731 |
14,770 |
||||
|
Shares outstanding |
||||||
|
September 30, 2023: 552,317,038 |
||||||
|
December 31, 2022: 549,245,105 |
||||||
|
Total liabilities and equity |
$ |
49,621 |
$ |
46,455 |
2
3M Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in millions)
(Unaudited)
|
Nine months ended September 30, |
||||||
|
2023 |
2022 |
|||||
|
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |
$ |
4,694 |
$ |
3,669 |
||
|
Cash flows from investing activities: |
||||||
|
Purchases of property, plant and equipment |
(1,257) |
(1,243) |
||||
|
Purchases and proceeds from sale or maturities of marketable securities |
149 |
28 |
||||
|
and investments - net |
||||||
|
Proceeds from sale of businesses, net of cash sold |
60 |
13 |
||||
|
Cash payment from Food Safety business split-off, net of divested cash |
- |
478 |
||||
|
Other investing activities |
142 |
66 |
||||
|
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES |
||||||
|
(906) |
(658) |
|||||
|
Cash flows from financing activities: |
||||||
|
Change in debt |
62 |
(838) |
||||
|
Purchases of treasury stock |
(31) |
(928) |
||||
|
Proceeds from issuances of treasury stock pursuant to stock option and |
245 |
310 |
||||
|
benefit plans |
||||||
|
Dividends paid to shareholders |
(2,483) |
(2,550) |
||||
|
Other financing activities |
(16) |
(29) |
||||
|
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
||||||
|
(2,223) |
(4,035) |
|||||
|
Effect of exchange rate changes on cash and cash equivalents |
(80) |
(136) |
||||
|
Net increase (decrease) in cash and cash equivalents |
||||||
|
1,485 |
(1,160) |
|||||
|
Cash and cash equivalents at beginning of year |
3,655 |
4,564 |
||||
|
Cash and cash equivalents at end of period |
$ |
5,140 |
$ |
3,404 |
3
3M Company and Subsidiaries
SALES CHANGE ANALYSIS3
(Unaudited)
|
Three months ended September 30, 2023 |
||||||||||
|
Sales Change Analysis By Geographic Area |
Americas |
Asia Pacific |
Europe, Middle |
Worldwide |
||||||
|
East and Africa |
||||||||||
|
Organic sales |
0.2 % |
(12.4)% |
(1.6)% |
(3.7)% |
||||||
|
Acquisitions |
0.6 |
0.1 |
0.1 |
0.4 |
||||||
|
Divestitures |
(0.7) |
(1.0) |
(1.2) |
(0.9) |
||||||
|
Translation |
0.5 |
(2.3) |
6.6 |
0.6 |
||||||
|
Total sales change |
0.6 % |
(15.6)% |
3.9 % |
(3.6)% |
||||||
|
Nine months ended September 30, 2023 |
||||||||||
|
Sales Change Analysis By Geographic Area |
Americas |
Asia Pacific |
Europe, Middle |
Worldwide |
||||||
|
East and Africa |
||||||||||
|
Organic sales |
0.5 % |
(11.9)% |
(2.0)% |
(3.6)% |
||||||
|
Acquisitions |
0.3 |
- |
- |
0.2 |
||||||
|
Divestitures |
(1.3) |
(1.0) |
(1.0) |
(1.2) |
||||||
|
Translation |
(0.1) |
(3.9) |
0.6 |
(1.1) |
||||||
|
Total sales change |
(0.6)% |
(16.8)% |
(2.4)% |
(5.7)% |
||||||
|
Three months ended September 30, 2023 |
||||||||||
|
Worldwide Sales Change By Business Segment |
Organic sales |
Acquisitions |
Divestitures |
Translation |
Total sales |
|||||
|
change |
||||||||||
|
Safety and Industrial |
(5.8)% |
- % |
- % |
0.9 % |
(4.9)% |
|||||
|
Transportation and Electronics |
(4.1) |
1.4 |
(0.4) |
0.1 |
(3.0) |
|||||
|
Health Care |
2.4 |
- |
(3.4) |
0.8 |
(0.2) |
|||||
|
Consumer |
(7.2) |
- |
- |
0.5 |
(6.7) |
|||||
|
Total Company |
(3.7) |
0.4 |
(0.9) |
0.6 |
(3.6) |
|||||
|
Nine months ended September 30, 2023 |
||||||||||
|
Worldwide Sales Change By Business Segment |
Organic sales |
Acquisitions |
Divestitures |
Translation |
Total sales |
|||||
|
change |
||||||||||
|
Safety and Industrial |
(5.5)% |
- % |
- % |
(1.0)% |
(6.5)% |
|||||
|
Transportation and Electronics |
(4.5) |
0.6 |
(0.9) |
(1.5) |
(6.3) |
|||||
|
Health Care |
1.3 |
- |
(3.9) |
(0.9) |
(3.5) |
|||||
|
Consumer |
(5.4) |
- |
(0.1) |
(0.6) |
(6.1) |
|||||
|
Total Company |
(3.6) |
0.2 |
(1.2) |
(1.1) |
(5.7) |
3Total sales change is calculated based on reported sales results. The components of sales change include organic local- currency sales, acquisitions, divestitures, and translation. Organic local-currency sales include both organic volume impacts (which excludes acquisition and divestiture impacts) and selling price changes. Acquisition and divestiture impacts are measured separately for the first 12 months post- transaction.
4
3M Company and Subsidiaries
BUSINESS SEGMENTS
(Unaudited)
3M discloses business segment operating income (loss) as its measure of segment profit/loss, reconciled to both total 3M operating income (loss) and income (loss) 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 INFORMATION |
Three months ended |
Nine months ended |
||||||||||
|
NET SALES |
September 30, |
September 30, |
||||||||||
|
(Millions) |
2023 |
2022 |
2023 |
2022 |
||||||||
|
Safety and Industrial |
$ |
2,751 |
$ |
2,894 |
$ |
8,295 |
$ |
8,869 |
||||
|
Transportation and Electronics |
2,171 |
2,239 |
6,412 |
6,847 |
||||||||
|
Health Care |
2,073 |
2,076 |
6,158 |
6,383 |
||||||||
|
Consumer |
1,315 |
1,409 |
3,800 |
4,048 |
||||||||
|
Corporate and Unallocated |
2 |
1 |
3 |
3 |
||||||||
|
Total Company |
$ |
8,312 |
$ |
8,619 |
$ |
24,668 |
$ |
26,150 |
5
3M Company and Subsidiaries
BUSINESS SEGMENTS - (CONTINUED)
(Unaudited)
|
BUSINESS SEGMENT INFORMATION |
Three months ended |
Nine months ended |
||||||||||
|
OPERATING INCOME (LOSS) |
September 30, |
September 30, |
||||||||||
|
(Millions) |
2023 |
2022 |
2023 |
2022 |
||||||||
|
Safety and Industrial |
$ |
666 |
$ |
652 |
$ |
1,801 |
$ |
572 |
||||
|
Transportation and Electronics |
389 |
475 |
1,093 |
1,414 |
||||||||
|
Health Care |
460 |
450 |
1,231 |
1,387 |
||||||||
|
Consumer |
269 |
299 |
683 |
766 |
||||||||
|
Total business segment operating income (loss) |
1,784 |
1,876 |
4,808 |
4,139 |
||||||||
|
Corporate and Unallocated |
||||||||||||
|
Corporate special items: |
||||||||||||
|
Net costs for significant litigation |
(4,270) |
(246) |
(14,709) |
(812) |
||||||||
|
Divestiture costs |
(132) |
(6) |
(359) |
(6) |
||||||||
|
Gain on business divestitures |
36 |
2,724 |
36 |
2,724 |
||||||||
|
Divestiture-related restructuring actions |
- |
(41) |
- |
(41) |
||||||||
|
Russia exit (charges) benefits |
- |
(109) |
18 |
(109) |
||||||||
|
Total corporate special items |
(4,366) |
2,322 |
(15,014) |
1,756 |
||||||||
|
Other corporate expense - net |
(72) |
(42) |
(165) |
12 |
||||||||
|
Total Corporate and Unallocated |
(4,438) |
2,280 |
(15,179) |
1,768 |
||||||||
|
Total Company operating income (loss) |
(2,654) |
4,156 |
(10,371) |
5,907 |
||||||||
|
Other expense/(income), net |
200 |
24 |
317 |
112 |
||||||||
|
Income (loss) before income taxes |
$ |
(2,854) |
$ |
4,132 |
$ |
(10,688) |
$ |
5,795 |
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) 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, divestiture-related restructuring costs, and Russia exit costs/benefits. 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 from transition supply, manufacturing, and service arrangements with Neogen Corporation following the 2022 split-off of 3M's Food Safety business. 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.
6
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES
(Unaudited)
In addition to reporting financial results in accordance with U.S. GAAP, 3M also provides certain non-GAAP measures. These measures are not in accordance with, nor are they a substitute for GAAP measures, and may not be comparable to similarly titled measures used by other companies.
Certain measures adjust for the impacts of special items. Special items for the periods presented include the items described in the section entitled "Description of special items". Because 3M provides certain information with respect to business segments, it is noteworthy that special items impacting operating income (loss) are reflected in Corporate and Unallocated, except as described with respect to net costs for significant litigation and manufactured PFAS products items in the "Description of special items" section. The reconciliations below, therefore, also include impacted segments as applicable.
In 2023, 3M changed certain of its non-GAAP measures by adjusting for the results of manufactured PFAS products in arriving at results, adjusted for special items. In the fourth quarter of 2022, 3M recorded a charge for PFAS manufacturing exit costs and included it as an adjustment in arriving at results, adjusted for special items. The 2023 non-GAAP measure change involved expanding the extent of adjustment to include the sales and estimates of income (including exit costs) and associated activity regarding manufactured PFAS products that 3M plans to exit by the end of 2025. This change also impacts other non-GAAP measures such as adjusted free cash flow, adjusted free cash flow conversion and adjusted EBITDA to similarly include relevant special item adjustments for manufactured PFAS products. The information herein reflects the impacts of these changes for all periods presented.
This document contains measures for which 3M provides the reported GAAP measure and a non-GAAP measure adjusted for special items. The document also contains additional measures which are not defined under U.S. GAAP. These measures and reasons 3M believes they are useful to investors (and, as applicable, used by 3M) include:
GAAP amounts for which a measure adjusted for special items is also provided:
- Net sales (and sales change)
- Operating income (loss), segment operating income (loss) and operating income (loss) margin
- Income (loss) before taxes
- Provision for income taxes and effective tax rate
- Net income (loss)
- Earnings (loss) per share
Additional non-GAAP measures:
- Adjusted net cash provided by (used in) operating activities; adjusted purchases of property, plant and equipment (also referred to as adjusted capital expenditures); adjusted free cash flow and adjusted free cash flow conversion
- Adjusted EBITDA and adjusted EBITDA margin
- Net debt
Reasons 3M believes the measure is useful
Considered, in addition to segment operating performance, in evaluating and managing operations; useful in understanding underlying business performance, provides additional transparency to special items
Used as indicators of strength and ability to generate cash and as indicator of capital deployment; meaningful as measures of performance
Considered in evaluating and managing operations; meaningful in analyses of ongoing underlying operating trends
Meaningful as indicator of liquidity and measure of capital structure strategy
The following provides additional information and applicable GAAP amounts reconciled to non-GAAP measures.
The term "N/M" used herein references "not meaningful" for certain percent changes.
7
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES - (CONTINUED)
(Unaudited)
Certain amounts adjusted for special items (non-GAAP measures):
|
Three months ended September 30, 2022 |
||||||||||||||||||||||||||
|
Net |
||||||||||||||||||||||||||
|
Operating |
Income |
Provision |
income |
|||||||||||||||||||||||
|
Operating |
income |
(loss) |
(benefit) |
(loss) |
||||||||||||||||||||||
|
(Dollars in millions, except per share amounts) |
Net sales |
income |
(loss) |
before |
for income |
Effective |
attributab |
Earnings per diluted |
||||||||||||||||||
|
(loss) |
margin |
taxes |
taxes |
tax rate |
le to 3M |
share |
||||||||||||||||||||
|
Safety and Industrial |
||||||||||||||||||||||||||
|
GAAP amounts |
$ |
652 |
22.5 % |
|||||||||||||||||||||||
|
Adjustments for special items: |
||||||||||||||||||||||||||
|
Net costs for significant litigation |
21 |
|||||||||||||||||||||||||
|
Total special items |
21 |
|||||||||||||||||||||||||
|
Adjusted amounts (non-GAAP measures)4 |
$ |
673 |
23.2 % |
|||||||||||||||||||||||
|
Transportation and Electronics |
||||||||||||||||||||||||||
|
GAAP amounts |
$ |
2,239 |
$ |
475 |
21.2 % |
|||||||||||||||||||||
|
Adjustments for special items: |
||||||||||||||||||||||||||
|
Manufactured PFAS products |
(350) |
(65) |
||||||||||||||||||||||||
|
Total special items |
(350) |
(65) |
||||||||||||||||||||||||
|
Adjusted amounts (non-GAAP measures)4 |
$ |
1,889 |
$ |
410 |
21.7 % |
|||||||||||||||||||||
|
Total Company |
||||||||||||||||||||||||||
|
GAAP amounts |
$ |
8,619 |
$ |
4,156 |
48.2 % |
$ |
4,132 |
$ |
271 |
6.6 % |
$ |
3,859 |
$ |
6.77 |
||||||||||||
|
Adjustments for special items: |
||||||||||||||||||||||||||
|
Net costs for significant litigation |
- |
267 |
267 |
57 |
210 |
0.37 |
||||||||||||||||||||
|
Manufactured PFAS products |
(350) |
(65) |
(65) |
(16) |
(49) |
(0.09) |
||||||||||||||||||||
|
Gain on business divestitures |
- |
(2,724) |
(2,724) |
(39) |
(2,685) |
(4.71) |
||||||||||||||||||||
|
Russia exit charges (benefits) |
- |
109 |
109 |
(2) |
111 |
0.20 |
||||||||||||||||||||
|
Divestiture-related restructuring |
- |
41 |
41 |
9 |
32 |
0.05 |
||||||||||||||||||||
|
actions |
||||||||||||||||||||||||||
|
Divestiture costs |
- |
6 |
6 |
2 |
4 |
0.01 |
||||||||||||||||||||
|
Total special items |
(350) |
(2,366) |
(2,366) |
11 |
(2,377) |
(4.17) |
||||||||||||||||||||
|
Adjusted amounts (non-GAAP measures)4 |
$ |
8,269 |
$ |
1,790 |
21.6 % |
$ |
1,766 |
$ |
282 |
15.9 % |
$ |
1,482 |
$ |
2.60 |
||||||||||||
|
Three months ended September 30, 2023 |
||||||||||||||||||||||||||
|
Earnings |
||||||||||||||||||||||||||
|
Net |
(loss) per |
|||||||||||||||||||||||||
|
Operating |
Income |
Provision |
income |
Earnings |
diluted |
|||||||||||||||||||||
|
Operating |
income |
(loss) |
(benefit) |
(loss) |
(loss) per |
share |
||||||||||||||||||||
|
(Dollars in millions, except per share amounts) |
Net sales |
Sales |
income |
(loss) |
before |
for income |
Effective |
attributab |
diluted |
percent |
||||||||||||||||
|
change |
(loss) |
margin |
taxes |
taxes |
tax rate |
le to 3M |
share |
change |
||||||||||||||||||
|
Safety and Industrial |
||||||||||||||||||||||||||
|
GAAP amounts |
$ |
666 |
24.2 % |
|||||||||||||||||||||||
|
Adjustments for special items: |
||||||||||||||||||||||||||
|
Net costs for significant litigation |
42 |
|||||||||||||||||||||||||
|
Total special items |
42 |
|||||||||||||||||||||||||
|
Adjusted amounts (non-GAAP measures)4 |
$ |
708 |
25.7 % |
|||||||||||||||||||||||
|
Transportation and Electronics |
$ |
2,171 |
(3.0)% |
$ |
389 |
17.9 % |
||||||||||||||||||||
|
GAAP amounts |
||||||||||||||||||||||||||
|
Adjustments for special items: |
||||||||||||||||||||||||||
|
Manufactured PFAS products |
(292) |
105 |
||||||||||||||||||||||||
|
Total special items |
(292) |
105 |
||||||||||||||||||||||||
|
Adjusted amounts (non-GAAP measures)4 |
$ |
1,879 |
(0.5)% |
$ |
494 |
26.3 % |
||||||||||||||||||||
|
Total Company |
$ |
8,312 |
(3.6)% |
$ |
(2,654) |
(31.9)% |
$ |
(2,854) |
$ |
(781) |
27.4 % |
$ (2,075) |
$ |
(3.74) |
(155)% |
|||||||||||
|
GAAP amounts |
||||||||||||||||||||||||||
|
Adjustments for special items: |
||||||||||||||||||||||||||
|
Net costs for significant litigation5 |
- |
4,312 |
4,469 |
1,068 |
3,401 |
6.13 |
||||||||||||||||||||
|
Manufactured PFAS products |
(292) |
105 |
105 |
25 |
80 |
0.15 |
||||||||||||||||||||
|
Gain on business divestitures |
- |
(36) |
(36) |
(11) |
(25) |
(0.05) |
||||||||||||||||||||
|
Divestiture costs |
- |
132 |
132 |
26 |
106 |
0.19 |
||||||||||||||||||||
|
Total special items |
(292) |
4,513 |
4,670 |
1,108 |
3,562 |
6.42 |
||||||||||||||||||||
|
Adjusted amounts (non-GAAP measures)4 |
$ |
8,020 |
(3.0)% |
$ |
1,859 |
23.2 % |
$ |
1,816 |
$ |
327 |
18.1 % |
$ |
1,487 |
$ |
2.68 |
3 % |
8
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES
(Unaudited)
|
Nine months ended September 30, 2022 |
|||||||||||||||||||||||||
|
Net |
|||||||||||||||||||||||||
|
Operating |
Income |
Provision |
income |
||||||||||||||||||||||
|
Operating |
income |
(loss) |
(benefit) |
(loss) |
|||||||||||||||||||||
|
(Dollars in millions, except per share amounts) |
Net sales |
income |
(loss) |
before |
for income |
Effective |
attributab |
Earnings per diluted |
|||||||||||||||||
|
(loss) |
margin |
taxes |
taxes |
tax rate |
le to 3M |
share |
|||||||||||||||||||
|
Safety and Industrial |
|||||||||||||||||||||||||
|
GAAP amounts |
$ |
572 |
6.4 % |
||||||||||||||||||||||
|
Adjustments for special items: |
|||||||||||||||||||||||||
|
Net costs for significant litigation |
1,421 |
||||||||||||||||||||||||
|
Total special items |
1,421 |
||||||||||||||||||||||||
|
Adjusted amounts (non-GAAP measures)4 |
$ |
1,993 |
22.5 % |
||||||||||||||||||||||
|
Transportation and Electronics |
|||||||||||||||||||||||||
|
GAAP amounts |
$ |
6,847 |
$ |
1,414 |
20.6 % |
||||||||||||||||||||
|
Adjustments for special items: |
|||||||||||||||||||||||||
|
Manufactured PFAS products |
(988) |
(101) |
|||||||||||||||||||||||
|
Total special items |
(988) |
(101) |
|||||||||||||||||||||||
|
Adjusted amounts (non-GAAP measures)4 |
$ |
5,859 |
$ |
1,313 |
22.4 % |
||||||||||||||||||||
|
Total Company |
|||||||||||||||||||||||||
|
GAAP amounts |
$ |
26,150 |
$ |
5,907 |
22.6 % |
$ |
5,795 |
$ |
550 |
9.5 % |
$ |
5,236 |
$ |
9.15 |
|||||||||||
|
Adjustments for special items: |
|||||||||||||||||||||||||
|
Net costs for significant litigation |
- |
2,233 |
2,233 |
456 |
1,777 |
3.10 |
|||||||||||||||||||
|
Manufactured PFAS products |
(988) |
(101) |
(101) |
(26) |
(75) |
(0.13) |
|||||||||||||||||||
|
Gain on business divestitures |
- |
(2,724) |
(2,724) |
(39) |
(2,685) |
(4.69) |
|||||||||||||||||||
|
Russia exit charges (benefits) |
- |
109 |
109 |
(2) |
111 |
0.19 |
|||||||||||||||||||
|
Divestiture-related restructuring |
- |
41 |
41 |
9 |
32 |
0.06 |
|||||||||||||||||||
|
actions |
|||||||||||||||||||||||||
|
Divestiture costs |
- |
6 |
6 |
2 |
4 |
0.01 |
|||||||||||||||||||
|
Total special items |
(988) |
(436) |
(436) |
400 |
(836) |
(1.46) |
|||||||||||||||||||
|
Adjusted amounts (non-GAAP measures)4 |
$ |
25,162 |
$ |
5,471 |
21.7 % |
$ |
5,359 |
$ |
950 |
17.7 % |
$ |
4,400 |
$ |
7.69 |
|||||||||||
|
Nine months ended September 30, 2023 |
|||||||||||||||||||||||||
|
Earnings |
|||||||||||||||||||||||||
|
Net |
(loss) per |
||||||||||||||||||||||||
|
Operating |
Income |
Provision |
income |
Earnings |
diluted |
||||||||||||||||||||
|
Operating |
income |
(loss) |
(benefit) |
(loss) |
(loss) per |
share |
|||||||||||||||||||
|
(Dollars in millions, except per share amounts) |
Net sales |
Sales |
income |
(loss) |
before |
for income |
Effective |
attributab |
diluted |
percent |
|||||||||||||||
|
change |
(loss) |
margin |
taxes |
taxes |
tax rate |
le to 3M |
share |
change |
|||||||||||||||||
|
Safety and Industrial |
$ |
1,801 |
21.7 % |
||||||||||||||||||||||
|
GAAP amounts |
|||||||||||||||||||||||||
|
Adjustments for special items: |
83 |
||||||||||||||||||||||||
|
Net costs for significant litigation |
|||||||||||||||||||||||||
|
Total special items |
83 |
||||||||||||||||||||||||
|
Adjusted amounts (non-GAAP measures)4 |
$ |
1,884 |
22.7 % |
||||||||||||||||||||||
|
Transportation and Electronics |
$ |
6,412 |
(6.3)% |
$ |
1,093 |
17.0 % |
|||||||||||||||||||
|
GAAP amounts |
|||||||||||||||||||||||||
|
Adjustments for special items: |
(969) |
54 |
|||||||||||||||||||||||
|
Manufactured PFAS products |
|||||||||||||||||||||||||
|
Total special items |
(969) |
54 |
|||||||||||||||||||||||
|
Adjusted amounts (non-GAAP measures)4 |
$ |
5,443 |
(7.1)% |
$ |
1,147 |
21.1 % |
|||||||||||||||||||
|
Total Company |
$ 24,668 |
(5.7)% |
$ (10,371) |
(42.0)% |
$ |
(10,688) |
$ (2,755) |
25.8 % |
$ (7,940) |
$ (14.34) |
N/M |
||||||||||||||
|
GAAP amounts |
|||||||||||||||||||||||||
|
Adjustments for special items: |
|||||||||||||||||||||||||
|
Net costs for significant litigation5 |
- |
14,792 |
14,961 |
3,532 |
11,429 |
20.64 |
|||||||||||||||||||
|
Manufactured PFAS products |
(969) |
54 |
54 |
12 |
42 |
0.08 |
|||||||||||||||||||
|
Gain on business divestitures |
- |
(36) |
(36) |
(11) |
(25) |
(0.05) |
|||||||||||||||||||
|
Russia exit charges (benefits) |
- |
(18) |
(18) |
3 |
(21) |
(0.04) |
|||||||||||||||||||
|
Divestiture costs |
- |
359 |
359 |
66 |
293 |
0.53 |
|||||||||||||||||||
|
Total special items |
(969) |
15,151 |
15,320 |
3,602 |
11,718 |
21.16 |
|||||||||||||||||||
|
Adjusted amounts (non-GAAP measures)4 |
$ 23,699 |
(5.8)% |
$ |
4,780 |
20.2 % |
$ |
4,632 |
$ |
847 |
18.3 % |
$ |
3,778 |
$ 6.82 |
(11) % |
4These items represent amounts adjusted for special items. See lead-in to non-GAAP measures discussion.
5For the per share amount, this includes adjusting-out the impact of this item causing weighted average shares outstanding to be the same for both basic and diluted loss per share in periods of resulting net losses.
9
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES (CONTINUED)
(Unaudited)
|
Full year 2023 forecast |
||
|
2023 adjusted earnings per share (non-GAAP measure)4,6 |
$8.95 to $9.15 |
|
|
2023 adjusted effective tax rate (non-GAAP measure)4,6 |
~ 18% |
63M provides these forward-lookingnon-GAAP measures, but cannot, without unreasonable effort, forecast certain items
to present or provide a reconciliation to corresponding forecasted GAAP measures. These include special items such as net costs for significant litigation; projected divestiture gains; divestiture costs; Russia exit charges/benefits, divestiture-related restructuring; and net sales and estimates of income and associated activity of exited manufactured PFAS products all of which are subject to limitations in predictability of timing, ultimate outcome and numerous conditions outside of 3M's control. 3M believes these limitations would result in a range of projected values so broad as to not be meaningful to investors. For these reasons, 3M believes that the probable significance of such information is low. Additionally, for similar reasons, 3M does not include the impact of potentially-divested or acquired businesses on expected operations in forecasted outlook guidance it provides until close of a transaction. Information with respect to special items for certain historical periods is included in the section entitled "Description of special items".
10
Attachments
Disclaimer
3M Company published this content on 24 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 October 2023 10:51:41 UTC.