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1、2022 Annual Report3M 2022 Annual ReportMike Roman Chairman of the Board and Chief Executive Officer 1Last year marked the 120-year anniversary of 3M.Many successful companies are founded on one big idea:for us,it was the power of material science to change the world.Thats our purpose as an enterpris
2、e,and it continues to drive us today.3M stands for quality,innovation and integrity.We apply our science every day,around the world,to protect industrial workers,make roadways safer and help patients heal faster.Our science reshapes the future of manufacturing,enhances the quality of homes,and impro
3、ves the performance of automobiles and electronics.It helped the world through the COVID-19 pandemic,and today enables a more sustainable future:in 2022 alone,our innovations helped customers avoid nearly 20 million metric tons of CO2 emissions.At the same time,we recognize our company is not reachi
4、ng its full potential.We must,and will,do more to create value for our customers and shareholders.That is why we are driving operational improvements day-to-day,while accelerating 3Ms transformation into a stronger,leaner,more focused company.Accelerating 3Ms Transformation In 2022,we focused on del
5、ivering for our customers and shareholders in a challenging economic environment,and taking actions that are foundational to defining our path forward.We addressed inflation through price actions,and proactively reduced costs and structure as demand softened throughout the year.To navigate supply ch
6、ain disruptions,we did what was necessary to serve our customers,improve cycle times and manage inventory which included moving product in different ways,opening a new distribution center in the United States,and utilizing new capabilities to better manage our flow of goods in real time.We navigated
7、 COVID-related lockdowns in China,reached agreement with the Flemish government to restart operations in Zwijndrecht,Belgium,and exited our Russian business.As always,we rolled out innovations to solve customer needs across our market-leading businesses:In Safety and Industrial,for example,our new r
8、obotic paint repair system received prestigious industry honors.Our Consumer business launched Scotch Cushion Lock,a sustainable alternative to plastic bubble wrap that was recognized by Fast Company as one of its World Changing Ideas.We advanced our leadership in wound care,which includes our negat
9、ive pressure wound therapies becoming the first solution of its kind to surpass 2,000 peer-reviewed studies.And in Transportation and Electronics,we introduced new thermal barrier films to improve performance of electric car batteries just one element of our$500 million automotive electrification pl
10、atform,which delivered 30%organic growth in 2022.To accelerate our innovation pipeline,we invested$3.6 billion in the combination of research and development and capital expenditures.Over the past five years,our scientists have earned an average of 3,500 patents per year.Dear Shareholders,This lette
11、r refers to non-GAAP measures such as earnings per share-diluted,adjusted for special items and net debt.Full financial data and non-GAAP reconciliations of earnings per share-diluted,adjusted for special items(refer to the Overview section)and net debt(refer to the Financial Condition and Liquidity
12、 section)are included in Item 7 of 3Ms 2022 Annual Report on Form 10-K.Organic growth companywide was 1.2%,which included a 2.0 percentage point headwind from the decline in disposable respirator demand and our exit of Russia.We delivered earnings per share of$10.18 or$10.10 on an adjusted basis whi
13、le strengthening our balance sheet and reducing total debt by$1.4 billion.We generated$5.6 billion in operating cash flow,enabling us to invest in our businesses,and return$4.8 billion to shareholders through dividends and share repurchases.Importantly,we took actions to position 3M for long-term su
14、ccess.Creating Long-Term Shareholder Value through Health Care Spin We actively managed our portfolio to unlock value for shareholders.In July we announced our plan to spin off our Health Care business,creating two well-capitalized,world-class companies with greater focus,and better positioned to dr
15、ive growth and innovation.3M will remain a global material science leader aligned to key megatrends such as electronics,safety,mobility and sustainability.The standalone Health Care business will be a leading global technology company focused on wound care,oral care,healthcare IT,and biopharma filtr
16、ation.In addition,last year we divested our Food Safety business,receiving approximately$1 billion in consideration and reducing our outstanding share count by 16 million.We divested our floor products business in Western Europe,while acquiring the technology assets of LeanTec,a provider of digital
17、management solutions for the automotive aftermarket segment.With respect to legal matters,we are focused on addressing Combat Arms and PFAS litigation by defending ourselves in court or negotiating resolutions as appropriate.Last year,we also announced we will exit all PFAS manufacturing and work to
18、 eliminate PFAS in our products by the end of 2025.While PFAS can be safely made and used,our decision is based on careful consideration of the external landscape,including regulatory trends and changing stakeholder expectations.We have already reduced our use of PFAS through ongoing research and de
19、velopment,and will continue to innovate new solutions for customers.We simplified and streamlined our supply chain organization,and advanced our digital strategies to better serve customers.This includes expanding our use of data and analytics to better serve customers and improve our operational ag
20、ility.In 2022,we continued to follow through on our sustainability goals,including our$1 billion commitment to achieve carbon neutrality,reduce water use,improve water quality and reduce our use 2We are accelerating our transformation into a stronger,leaner,more focused company.Our people remain com
21、mitted to doing business the right way,with unwavering integrity.33M 2022 Annual Reportof plastics.3M is on track to meet or exceed each of those goals.We have reduced our carbon footprint by more than 35%and water usage by more than 15%since 2019.In the last two years alone,we have reduced our use
22、of virgin fossil-based plastic by over 50 million pounds.We are ahead of schedule in installing state-of-the-art filtration technologies in factories around the world we now have capabilities up and running at all three of our largest water-using sites in the United States,and in Zwijndrecht.Our ene
23、rgy management efforts were also recently recognized by the U.S.Department of Energy,which noted our“history of superior contributions to achieving sustainability goals.”To help our people be at their best,we supported employee health,safety and well-being through new flexible work arrangements and
24、factory investments.We are reimagining the future of work,combining the best of virtual and in-person.We have introduced new office designs that support meaningful onsite experiences,and can flex as business demands evolve.3Ms employee resource networks are also expanding,with a 25%increase in globa
25、l membership over the last few years.We continue to advance diversity,equity and inclusion in our company and communities.We are working to double our representation of underrepresented groups within 3M,and double our spending with diverse suppliers.We are implementing multiple strategies to strengt
26、hen education,and recently partnered with the White House and other leading companies to increase STEM equity.Each of our business groups is executing initiatives last year,for instance,we installed high-performance road materials in more than 30 school zones around the world to increase pedestrian
27、visibility and help children get to class safely.Our people remain committed to doing business the right way,with unwavering integrity.In 2022,3M was recognized by Ethisphere as one of the Worlds Most Ethical Companies for the ninth consecutive year.Driving Operational Performance in 2023 We expect
28、macroeconomic challenges to persist in 2023.While we have taken actions to improve our operational performance,we are not satisfied.We are taking additional actions to reduce costs,structure and inventory,building on those actions taken in 2022.In January,we announced the reduction of approximately
29、2,500 global manufacturing roles to align with adjusted production volumes.As we prepare for the Health Care spin-off,we are also taking a more comprehensive look at all of our operations to drive improvement.We will take additional actions throughout 2023 to improve supply chain performance,drive s
30、implification,and bring 4$40$35$30$25$20$15$10$5$0Sales(billions)$32.22020$35.42021$34.22022$12$10$8$6$4$2$0$9.36/$9.29*$10.12/$10.73*$10.18/$10.10*202020212022Earnings per share-diluted*Earnings per share-diluted,adjusted for special items(non-GAAP measures).See the Overview section of Item 7 of 3M
31、s 2022 Annual Report on Form 10-K for further details.us even closer to our customers.As global supply chains continue to improve,we will also focus on reducing working capital,which is our most significant opportunity to strengthen cash flow.3M succeeds in difficult times because we remain close to
32、 customers and continue to invest in innovation.Automotive electrification,industrial automation,biopharma processing,and home improvement are just a few examples of large,fast-growing markets where we are investing,and where 3M innovation can make a difference.Investments in growth,productivity and
33、 sustainability will remain a priority in 2023.As always,underpinning all of our work will be the strengths of 3M:our people,industry-leading innovation,advanced manufacturing,global capabilities,and iconic brands.These strengths form a strong foundation,built up over 120 years.We will continue to a
34、dd to that foundation and transform for the future.I am confident we will exit 2023 a stronger,leaner,and more focused 3M better positioned to deliver value for all stakeholders who have placed their trust in us,including you,our shareholders.Mike RomanChairman of the Board and Chief Executive Offic
35、er$6.00$5.50$5.00$4.50$4.00$3.50$3.00$2.50$2.00$1.50$1.00$0.50$0.00$5.882020$5.92$5.9620212022Cash dividends paid per shareOrganic sales growthbusiness group(year-on-year)Total sales by business groupGAAP earningsper share+0.6%year-on-year$10.18$3.4B$1.9B$1.5B$1.7BDividendsShareRepurchases+1.2%Organ
36、ic salesyear-on-year$10.10Adjusted earnings per share*-5.8%year-on-year66%Free cash flow conversion*Investment inresearch and development$34.2BNet sales-3.2%year-on-year19.1%GAAP operatingincome margins-170 basis points year-on-year-3.9%Impact of currencyon worldwide salesyear-on-year20.8%Adjusted o
37、peratingincome margins*-140 basis points year-on-year-0.5%Impact of acquisitions,net of divestitures,on worldwide salesyear-on-yearInvestmentin capital expenditures100%of new products in development contain a Sustainability Value CommitmentSafety&Industrial+1.0%+1.2%Transportation&Electronics+3.2%He
38、alth Care-0.9%ConsumerSafety&IndustrialConsumerHealth CareTransportation&Electronics$11.6B(34%)$8.9B(26%)$8.4B(25%)$5.3B(15%)52022 financial results3M 2022 Annual Report*2022 operating cash flow of$5.6 billion.Full financial data and non-GAAP reconciliations of free cash flow conversion(refer to the
39、 Financial Condition and Liquidity section)and certain amounts adjusted for special items(refer to the Overview section)are included in Item 7 of 3Ms 2022 Annual Report on Form 10-K.6Our businesses4%9%10%11%12%20%34%AbrasivesAutomotive AftermarketClosure&Masking SystemsElectrical MarketsIndustrial A
40、dhesives&TapesPersonal SafetyRoofing GranulesSafety&IndustrialAccelerating safety and industry performance by serving the industrial,electrical and safety markets.2022 sales by business($M)2022Sales$11,604Sales growth(3.2)%Organic sales growth 1.0%Operating margins 10.3%2022 performance9%13%20%20%38
41、%Advanced MaterialsAutomotive&AerospaceCommercial SolutionsElectronicsTransportation Safety2022 sales by business($M)2022Sales$8,902Sales growth(3.9)%Organic sales growth 1.2%Operating margins 11.4%2022 performanceTransportation&Electronics Moving transportation and a connected world forward by serv
42、ing automotive and electronic OEM customers.2022 sales by business3%11%15%16%55%Food SafetyHealth Information SystemsMedical SolutionsOral CareSeparation&Purification Sciences($M)2022Sales$8,421Sales growth(2.0)%Organic sales growth 3.2%Operating margins 21.6%2022 performanceHealth CareLeveraging sc
43、ience and technology to improve the delivery of health care and patient outcomes.24%45%20%Home CareHome ImprovementStationery&Office11%Consumer Health&Safety2022 sales by business($M)2022Sales$5,298Sales growth(3.9)%Organic sales growth(0.9)%Operating margins 18.8%2022 performanceConsumerInnovating
44、to improve homes,work and life by serving global consumers.7(Dollars in millions,except per share amounts)3M 2022 Annual ReportFinancial summary*In addition reduced outstanding shares by 16 million via exchange offer related to Food Safetydivestiture in 2022.n/t202220212020Operating Resultsn/tn/tn/t
45、Net sales$34,229$35,355$32,184Operating income6,5397,3697,161 Net income attributable to 3M5,7775,9215,449 Per share basic10.2110.239.43 Per share diluted10.1810.129.36Financial Ratiosn/tn/tn/tPercent of salesn/tn/tn/t Cost of sales56.2%53.2%51.6%Selling,general and administrative expense,net of gai
46、n on sale of business divestitures and goodwill impairment expense19.320.420.3 Research,development and related expenses5.45.65.8 Operating income19.120.822.3 Net income attributable to 3M16.916.716.9Additional Informationn/tn/tn/tCash dividends paid3,3693,4203,388Purchases of treasury stock*1,4642,
47、199368 Capital returned to shareholders4,8335,6193,756Stock price at year-end119.92177.63174.79Total assets46,45547,07247,344Long-term debt(excluding current portion)14,00116,05617,989Capital expenditures1,7491,6031,501Depreciation and amortization1,8311,9151,911Research,development and related expe
48、nses1,8621,994 1,878 Number of employees at year-end92,00095,00095,000Average shares outstanding basic(in millions)566.0579.0577.6Average shares outstanding diluted(in millions)567.6585.3582.2UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K ANNUAL REPORT PURSUANT TO SECTI
49、ON 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31,2022oro TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from _ to _ Commission file number 1-32853M COMPANY State of Incorporation:DelawareI.R.S
50、.Employer Identification No.41-0417775Principal executive offices:3M Center,St.Paul,Minnesota 55144Telephone number:(651)733-1110Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon Stock,Par Value$.01 Per Share
51、MMMNew York Stock ExchangeMMMChicago Stock Exchange,Inc.0.950%Notes due 2023MMM23New York Stock Exchange1.500%Notes due 2026MMM26New York Stock Exchange1.750%Notes due 2030MMM30New York Stock Exchange1.500%Notes due 2031MMM31New York Stock ExchangeNote:The common stock of the registrant is also trad
52、ed on the SIX Swiss Exchange.Securities registered pursuant to section 12(g)of the Act:NoneIndicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes x No oIndicate by check mark if the registrant is not required to file reports pursuant
53、 to Section 13 or Section 15(d)of the Act.Yes o No xIndicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required to fi
54、le such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes x No oIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the
55、 preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes x No oIndicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the d
56、efinitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company,”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filer xAccelerated filer oNon-accelerated filer oSmaller reporting company Emerging growth companyIf an emerging growth company,indic
57、ate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.oIndicate by check mark whether the registrant has filed a report on and attestation to
58、 its managements assessment of the effectiveness of its internal control over financial reporting under Section 404(b)of the Sarbanes Oxley Act(15 U.S.C.7262(b)by the registered public accounting firm that prepared or issued its audit report.Yes No o If securities are registered pursuant to Section
59、12(b)of the Act,indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.o Indicate by check mark whether any of those error corrections are restatements that required a recovery anal
60、ysis of incentive-based compensation received by any of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b)o Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Act).Yes No xThe aggregate market value of voting
61、stock held by nonaffiliates of the registrant,computed by reference to the closing price and shares outstanding,was approximately$63.3 billion as of January 31,2023(approximately$73.7 billion as of June 30,2022,the last business day of the registrants most recently completed second quarter).Shares o
62、f common stock outstanding at January 31,2023:550.5 millionDOCUMENTS INCORPORATED BY REFERENCEParts of the Companys definitive proxy statement(to be filed pursuant to Regulation 14A within 120 days after Registrants fiscal year-end of December 31,2022)for its annual meeting to be held on May 9,2023,
63、are incorporated by reference in this Form 10-K in response to Part III,Items 10,11,12,13 and 14.13M COMPANYFORM 10-KFor the Year Ended December 31,2022Pursuant to Part IV,Item 16,a summary of Form 10-K content follows,including hyperlinked cross-references(in the EDGAR filing).This allows users to
64、easily locate the corresponding items in Form 10-K,where the disclosure is fully presented.The summary does not include certain Part III information that will be incorporated by reference from the proxy statement,which will be filed after this Form 10-K filing.BeginningPagePART IITEM 1Business4ITEM
65、1ARisk Factors10ITEM 1BUnresolved Staff Comments16ITEM 2Properties16ITEM 3Legal Proceedings17ITEM 4Mine Safety Disclosures17PART IIITEM 5Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities18ITEM 7Managements Discussion and Analysis of Financial
66、Condition and Results of Operations19MD&A is designed to provide a reader of 3Ms financial statements with a narrative from the perspective of management.3Ms MD&A is presented in eight sections:Overview19Results of Operations27Performance by Business Segment28Performance by Geographic Area33Critical
67、 Accounting Estimates34New Accounting Pronouncements36Financial Condition and Liquidity37Financial Instruments42ITEM 7AQuantitative and Qualitative Disclosures About Market Risk42ITEM 8Financial Statements and Supplementary Data43Index to Financial Statements43Managements Responsibility for Financia
68、l Reporting44Managements Report on Internal Control Over Financial Reporting44Report of Independent Registered Public Accounting Firm45Consolidated Statement of Income for years ended December 31,2022,2021 and 202048Consolidated Statement of Comprehensive Income for the years ended December 31,2022,
69、2021 and 202049Consolidated Balance Sheet at December 31,2022 and 202150Consolidated Statement of Changes in Equity for the years ended December 31,2022,2021 and 202051Consolidated Statement of Cash Flows for the years ended December 31,2022,2021 and 202052Notes to Consolidated Financial Statements5
70、3Note 1.Significant Accounting Policies53Note 2.Revenue59Note 3.Acquisitions and Divestitures61Note 4.Goodwill and Intangible Assets63Note 5.Restructuring Actions64Note 6.Supplemental Income Statement Information67Note 7.Supplemental Balance Sheet Information68Note 8.Supplemental Equity and Comprehe
71、nsive Income Information69Note 9.Supplemental Cash Flow Information70Note 10.Income Taxes71Note 11.Marketable Securities74Note 12.Long-Term Debt and Short-Term Borrowings75Note 13.Pension and Postretirement Benefit Plans77Note 14.Derivatives87Note 15.Fair Value Measurements92Note 16.Commitments and
72、Contingencies94Note 17.Leases116Note 18.Stock-Based Compensation118Note 19.Business Segments and Geographic Information121ITEM 9Changes in and Disagreements with Accountants on Accounting and Financial Disclosure125ITEM 9AControls and Procedures125ITEM 9BOther Information125ITEM 9CDisclosure Regardi
73、ng Foreign Jurisdictions that Prevent Inspections125PART IIIITEM 10Directors,Executive Officers and Corporate Governance126ITEM 11Executive Compensation126ITEM 12Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters127ITEM 13Certain Relationships and Related
74、Transactions,and Director Independence127ITEM 14Principal Accounting Fees and Services127PART IVITEM 15Exhibits,Financial Statement Schedules128ITEM 16Form 10-K Summary1303M COMPANYANNUAL REPORT ON FORM 10-KFor the Year Ended December 31,2022PART IItem 1.Business.3M Company was incorporated in 1929
75、under the laws of the State of Delaware to continue operations begun in 1902.The Companys ticker symbol is MMM.As used herein,the term“3M”or“Company”includes 3M Company and its subsidiaries unless the context indicates otherwise.In this document,for any references to Note 1 through Note 19,refer to
76、the Notes to Consolidated Financial Statements in Item 8.Available InformationThe Securities and Exchange Commission(SEC)maintains a website that contains reports,proxy and information statements,and other information regarding issuers,including the Company,that file electronically with the SEC.The
77、public can obtain any documents that the Company files with the SEC at http:/www.sec.gov.The Company files annual reports,quarterly reports,proxy statements and other documents with the SEC under the Securities Exchange Act of 1934(Exchange Act).3M also makes available free of charge through its web
78、site(http:/investors.3M.com)the Companys Annual Report on Form 10-K,Quarterly Reports on Form 10-Q,Current Reports on Form 8-K,and,if applicable,amendments to those reports filed or furnished pursuant to the Exchange Act as soon as reasonably practicable after the Company electronically files such m
79、aterial with,or furnishes it to,the SEC.General3M is a diversified technology company with a global presence in the following businesses:Safety and Industrial;Transportation and Electronics;Health Care;and Consumer.3M is among the leading manufacturers of products for many of the markets it serves.M
80、ost 3M products involve expertise in product development,manufacturing and marketing,and are subject to competition from products manufactured and sold by other technologically oriented companies.Business Segments3M manages its operations in four business segments.The reportable segments are Safety
81、and Industrial,Transportation and Electronics,Health Care,and Consumer.3Ms 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 int
82、ention to spin off the Health Care business as a separate public company(see Note 3 for additional information).Refer to segment descriptions summarized below(Financial information and other disclosures relating to 3Ms business segments and operations in major geographic areas are provided in the No
83、tes to Consolidated Financial Statements):4Business SegmentSafety and IndustrialTransportation and ElectronicsHealth CareConsumerUnderlying divisions/businessesRefer to Note 2 for disaggregated revenue information Abrasives Automotive aftermarket Closure and masking systems Electrical markets Indust
84、rial adhesives and tapes Personal safety Roofing granules Advanced materials Automotive and aerospace Commercial solutions Display materials and systems Electronics materials solutions Transportation safety Health information systems Medical solutions Oral care Separation and purification sciences F
85、ood safety(divested in 2022)Consumer health and safety Home care Home improvement Stationery and officeRepresentative revenue-generating activities,products or services Industrial abrasives and finishing for metalworking applications Autobody repair solutions Closure systems for personal hygiene pro
86、ducts,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 granu
87、les for shingles Advanced ceramic solutions Attachment tapes,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 Packaging and interconnection solutions Refle
88、ctive signage for highway,and vehicle safety 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 bandages,braces,supports and consumer respirators Clea
89、ning products for the home Retail abrasives,paint accessories,car care DIY products,picture hanging and consumer air quality solutions Stationery productsSome seasonality impacts this business segment related to back-to-school,generally in the third quarter of each yearExample brands/offerings 3M Cu
90、bitron II abrasives Scotch-Brite Abrasives Scotch&Temflex Vinyl Tapes,Scotchkote Coatings,Dynatel locators,Scotchcast resins Collision repair and paint spray products Reclosable fasteners;tapes and label materials for durable goods Electrical infrastructure products;medium voltage cable accessories
91、and insulation tapes 3M VHB Bonding tapes;Scotch masking,packaging and filament tapes Disposable respirators and fall protection products Scotchgard Protector for shingles 3M Nextel Ceramic fibers and textiles Thinsulate Acoustic Insulation products and automotive components 3M Novec Engineered Flui
92、ds 3M Scotchlite graphic films,3M Scotchcal and 3M Controltac Commercial graphics Electronic display enhancement films and optically clear adhesives Electronic interconnect products 3M Diamond Grade DG3 reflective sheeting for transportation safety 3M 360 Encompass medical coding systems 3M Tegaderm
93、 wound dressings,V.A.C.Therapy Systems and disposable respirators in the health care channel 3M Filtek and 3M RelyX dental filing materials and cements;3M Clarity aligners Biopharma and other filtration systems,bags,capsules and components ACE,FUTURO and Nexcare personal health care products Scotch-
94、Brite cleaning supplies,sponges,brushes,and scouring pads;Scotchgard products Scotch tapes and other products,Filtrete filters and Command adhesive products Post-it productsRepresentative market trends or opportunities Personal safety Connected bodyshop Grid modernization Robotics and automation Aut
95、omotive/mobility Electronic materials Semiconductor Graphic and architectural films Wound care Healthcare IT Biopharma filtration Home improvement Consumer safety&well-being Package protection&shipping Appearance auto careDistribution3M products are sold through numerous distribution channels,includ
96、ing directly to users and through numerous e-commerce and traditional wholesalers,retailers,jobbers,distributors and dealers in a wide variety of trades in many countries around the world.Management believes the confidence of wholesalers,retailers,jobbers,distributors and dealers in 3M and its produ
97、cts a confidence developed through long association with skilled marketing and sales representatives has contributed significantly to 3Ms position in the marketplace and to its growth.5ResourcesHuman CapitalOn December 31,2022,the Company employed approximately 92,000 people(full-time equivalents),w
98、ith approximately 37,000 employed in the United States and 55,000 employed internationally.The ability to recruit,retain,develop,protect,and fairly compensate its global workforce are enablers of 3Ms success.This includes four general categories of focus:Health and Safety;Development;Diversity,Equit
99、y and Inclusion;and Compensation and Benefits.Health and Safety3M is committed to the safety,health,and well-being of its employees.The Company continuously evaluates opportunities to raise safety and health standards,visiting sites to identify and manage environmental health and safety risks;evalua
100、ting compliance with regulatory requirements and 3M policy;and maintaining a global security operation for the protection of facilities and people on 3M sites.3M also promotes a culture of health and well-being through disease prevention programs,on-site clinical services,employee assistance program
101、s,and comprehensive health care benefits.DevelopmentDeveloping employees contributes to growing 3Ms business.3M maintains talent and succession planning processes,including regular review by the Companys chief executive officer(CEO)and reporting up through the Board of Directors.The Company has a su
102、ite of high-potential leadership development programs which brings a consistent approach to leadership development.3M also has development programs for managers and supervisors and provides learning opportunities for all employees,in addition to regular coaching and support from their supervisor.Wit
103、h the Companys global online employee learning platform,employees are able to access unique,just-in-time development resources in over 15 languages to support their career aspirations and advance their skills.Diversity,Equity and InclusionA diverse,global workforce and inclusive culture that provide
104、s fair and equitable opportunities helps 3M remain competitive,advance its innovation culture,and serve customers.3M focuses on attracting and advancing top talent and has publicly committed to advance global diversity in management across all dimensions,with additional specific goals to continue ad
105、vancing pay equity and to increase the Companys diversity with underrepresented groups.3M supports these values with an internal CEO Inclusion Council,a forum led by senior management to advance diversity,equity,and inclusion initiatives.The Company also plans to invest$50 million over 2020 to 2025
106、to address racial opportunity gaps through workforce development initiatives in the communities in which its employees live and 3M business operates.Compensation and Benefits3M has a trust-based approach to work that empowers employees to work where and when they can best achieve their goals,which s
107、upports attraction and retention of talent around the globe.In addition to a professional and flexible work environment that promotes innovation,well-being,and rewards performance,3Ms total compensation for employees includes a variety of components that support sustainable employment and the abilit
108、y to build a strong financial future,including competitive market-based pay and comprehensive benefits.In addition to earning a base salary,eligible employees are compensated for their contributions to the Companys goals with both short-term cash incentives and long-term equity-based incentives.Thro
109、ugh its global pay philosophy,principles and consistent implementation,3M is committed to providing fair and equitable pay for employees.Eligible full-time employees in the United States also have access to medical,dental,and vision plans;savings and retirement plans;a 3M employee stock purchase pla
110、n;and other resources.Some of these benefits can also be available to regular part-time employees who work at least 20 hours a week.Programs and benefits differ internationally for a variety of reasons,such as local legal requirements,market practices,and negotiations with works councils,trade union
111、s,and other employee representative bodies.Raw MaterialsIn 2022,many geopolitical,logistics,and disruptive events caused imbalance in the global supply chain,similar to the past few years.The Company experienced raw material price inflation and constrained supply throughout the global marketplace an
112、d continued to deploy productivity projects to minimize the impact.To help manage disruption in its manufacturing operations,3M deployed careful management of existing raw material inventories,strategic relationships with key suppliers,and qualification of additional supply sources.3M manages spend
113、category price risks through negotiated supply contracts and price protection agreements.In addition,3M evaluates suppliers conformance with environmental and social compliance requirements.Overall,on a consolidated basis,3M experienced net raw material price inflation in 2022.6Patents,Trademarks an
114、d LicensesThe Companys products are sold around the world under various trademarks.The Company also owns,or holds licenses to use,numerous U.S.and foreign patents.The Companys research and development activities generate a steady stream of inventions that are covered by new patents or trade secrets.
115、Patents applicable to specific products extend for varying periods according to the date of patent application filing or patent grant and the legal term of patents in the various countries where patent protection is obtained.The actual protection afforded by a patent,which can vary from country to c
116、ountry,depends upon the type of patent,the scope of its coverage and the availability of legal remedies in the country.The Company believes that its trademarks,patents,and trade secrets provide an important competitive advantage in many of its businesses.In general,no single patent or group of relat
117、ed patents is in itself essential to the Company as a whole or to any of the Companys business segments.Government Regulation and Environmental Law ComplianceThe Companys business operations are subject to various governmental regulations in the U.S.and internationally,including,among others,those r
118、elated to product liability;antitrust;intellectual property;environmental,health,and safety;tax;the U.S.Foreign Corrupt Practices Act and other anti-bribery laws,international import and export requirements and trade sanctions compliance;regulations of the U.S.Food and Drug Administration(FDA)and si
119、milar foreign agencies,U.S.federal healthcare program-related laws and regulations,such as the False Claims Act,anti-kickback laws and the Sunshine Act.3Ms manufacturing operations are affected by national,state and local environmental laws and regulations around the world.The Company places consist
120、ent emphasis on environmental responsibility.3M has made,and plans to continue making,necessary expenditures for compliance with applicable laws and regulations.3M is also involved in remediation actions relating to environmental matters from past operations at certain sites(refer to“Environmental M
121、atters and Litigation”in Note 16,Commitments and Contingencies).Environmental expenditures relating to existing conditions caused by past operations that do not contribute to current or future revenues are expensed.Reserves for liabilities for anticipated remediation costs are recorded on an undisco
122、unted basis when they are probable and reasonably estimable,generally no later than the completion of feasibility studies,the Companys commitment to a plan of action,or approval by regulatory agencies.Environmental expenditures for capital projects that contribute to current or future operations gen
123、erally are capitalized and depreciated over their estimated useful lives.In 2022,3M expended approximately$317 million on capital projects for environmental purposes as defined below.Capital projects for environmental purposes include waste reduction and pollution control programs such as,water usag
124、e reduction and water quality improvement equipment,scrubbers,containment structures,solvent recovery units and thermal oxidizers.Capital expenditures for similar projects are presently expected to approach approximately$646 million for 2023 and 2024 in aggregate.Although an estimate of certain near
125、er-term capital expenditures is provided above,3M cannot predict with certainty whether future costs of compliance with government regulations(including environmental regulations)will have a material effect on its capital expenditures,earnings or competitive position.7Information about our Executive
126、 OfficersFollowing is a list of the executive officers of 3M,and their age,present position,the year elected to their present position and other positions they have held during the past five years.No family relationships exist among any of the executive officers named,nor is there any undisclosed ar
127、rangement or understanding pursuant to which any person was selected as an officer.This information is presented in the table below as of the date of the 10-K filing(February 8,2023).NameAgePresent PositionYear Elected to Present Position Michael F.Roman63Chairman of the Board and Chief Executive Of
128、ficer2019Chief Executive Officer,2018-2019Chief Operating Officer and Executive Vice President,2017-2018Executive Vice President,Industrial Business Group,2014-2017John P.Banovetz55Executive Vice President,Chief Technology Officer and Environmental Responsibility2021Senior Vice President,Chief Techn
129、ology Officer and Environmental Responsibility,2021Senior Vice President,Innovation and Stewardship and Chief Technology Officer,2020Senior Vice President of Research and Development and Chief Technology Officer,2017-2019Karina Chavez49Senior Vice President and Chief Strategy Officer2021Senior Vice
130、President,Customer Operations,2020-2021Global Business Director,Home Improvement Business,2017-2020Zoe Dickson49Executive Vice President and Chief Human Resources Officer2021Senior Vice President,Talent,Learning and Insights,2021Vice President,Organization Effectiveness and Talent,Human Resources,20
131、20-2021 Vice President,Organization Effectiveness,Human Resources 2019-2020 Vice President,Global Human Resources Business Operations,Human Resources 2018-2019HR Director,Consumer Business Group 2016-2018Peter D.Gibbons61Group President,Enterprise Operations2021Chief Executive Officer,Tirehub,2018-2
132、021Executive Vice President,Global Development and Product Supply&CSCO,Mattel,Inc,2013-2018Eric D.Hammes48Executive Vice President,Chief Country Governance and Services Officer2021Senior Vice President,Manufacturing&Supply Chain,2019-2021Senior Vice President,Business Transformation&Information Tech
133、nology,2017-2019Vice President,Corporate Controller and Chief Accounting Officer,2014-2017Ashish K.Khandpur55Group President,Transportation&Electronics2021Executive Vice President,Transportation&Electronic Business Group,2019-2021Executive Vice President,Electronics&Energy Business Group,2017-2019Se
134、nior Vice President,Research and Development,and Chief Technology Officer,2014-2017Jeffrey R.Lavers59Group President,Consumer Business Group and Interim Group President,Health Care Business Group2022Executive Vice President,Consumer Business Group,2020-2021Vice President and General Manager,Automoti
135、ve and Aerospace Solutions Division,2019-2020Vice President and General Manager,Construction and Home Improvement Division,2015-2019Mark Murphy54Executive Vice President,Chief Information and Digital Officer2021Chief Information Officer,Abbott Laboratories,2020-2021Global Chief Information Officer a
136、nd Vice President,BTS,Abbott Laboratories,2018-2020Medical Devices Chief Information Officer and Divisional VP,Abbott Laboratories,2017-2018Monish Patolawala53Executive Vice President,Chief Financial and Transformation Officer2021Senior Vice President and Chief Financial Officer 2020-2021Chief Finan
137、cial Officer,Health Care and Vice President,Operational Transformation,General Electric,2019-2020Chief Financial Officer,Health Care,General Electric,2015-2019Kevin H.Rhodes60Executive Vice President,Chief Legal Affairs Officer2022Senior Vice President and Deputy General Counsel,2021Vice President a
138、nd Deputy General Counsel,2019-2021President and Chief Intellectual Property Counsel,Office of Intellectual Property Counsel and 3M Innovative Properties 2008-2019Michael G.Vale56Group President,Safety&Industrial Business Group2021Executive Vice President,Safety&Industrial Business Group,2019-2021Ex
139、ecutive Vice President,Health Care Business Group,2016-2019Other Positions Held during 2018-20228Cautionary Note Concerning Factors That May Affect Future ResultsThis Annual Report on Form 10-K,including“Managements Discussion and Analysis of Financial Condition and Results of Operations”in Part II,
140、Item 7,contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.The Company may also make forward-looking statements in other reports filed with the Securities and Exchange Commission,in materials delivered to shareholders and in press releases.I
141、n addition,the Companys representatives may from time to time make oral forward-looking statements.Forward-looking statements relate to future events and typically address the Companys expected future business and financial performance.Words such as“plan,”“expect,”“aim,”“believe,”“project,”“target,”
142、“anticipate,”“intend,”“estimate,”“will,”“should,”“could,”“forecast”and other words and terms of similar meaning,typically identify such forward-looking statements.In particular,these include,among others,statements relating to:worldwide economic,political,regulatory,international trade,geopolitical,
143、capital markets and other external conditions,such as interest rates,monetary policy,financial conditions of our suppliers and customers,trade restrictions such as tariffs and retaliatory counter measures,inflation,recession,military conflicts,and natural and other disasters or climate change affect
144、ing the operations of the Company or our suppliers and customers,risks related to unexpected events such as the public health crises associated with the coronavirus(COVID-19)global pandemic,liabilities and the outcome of contingencies related to certain fluorochemicals known as PFAS,as well as matte
145、rs related to the Companys plans to discontinue the use of PFAS,the Companys strategy for growth,future revenues,earnings,cash flow,uses of cash and other measures of financial performance,and market position,competitive conditions and customer preferences,foreign currency exchange rates and fluctua
146、tions in those rates,new business opportunities,product and service development,and future performance or results of current or anticipated products and services,fluctuations in the costs and availability of purchased components,compounds,raw materials and energy,information technology systems inclu
147、ding implementation of an enterprise resource planning(ERP)system,security breaches and other disruptions to information technology infrastructure,the scope,nature or impact of acquisition,strategic alliance and divestiture activities,operational execution,including inability to generate productivit
148、y improvements as estimated,future levels of indebtedness,common stock repurchases and capital spending,future access to credit markets and the cost of credit,pension and postretirement obligation assumptions and future contributions,asset impairments,tax liabilities and effects of changes in tax ra
149、tes,laws or regulations,the proposed spin-off of the Companys Health Care business to establish two separate public companies,the voluntary chapter 11 proceedings initiated by the Companys Aearo Entities,andlaws and regulations,as well as legal compliance risks(including third-party risks),and legal
150、 and regulatory proceedings related to the same,including with regards to environmental matters and product liability,in the United States and other countries in which we operate.The Company assumes no obligation to update or revise any forward-looking statements.Forward-looking statements are based
151、 on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties.Actual future results and trends may differ materially from historical results or those reflected in any such forward-looking statements depending on a variety of factors.Important inform
152、ation as to these factors can be found in this document,including,among others,“Managements Discussion and Analysis of Financial Condition and Results of Operations”under the headings of“Overview,”“Financial Condition and Liquidity”and annually in“Critical Accounting Estimates.”Discussion of these f
153、actors is incorporated by reference from Part I,Item 1A,“Risk Factors,”of this document,and should be considered an integral part of Part II,Item 7,“Managements Discussion and Analysis of Financial Condition and Results of Operations.”For additional information concerning factors that may cause actu
154、al results to vary materially from those stated in the forward-looking statements,see our reports on Form 10-K,10-Q and 8-K filed with the SEC from time to time.9Item 1A.Risk Factors.Provided below is a cautionary discussion of what we believe to be the most important risk factors applicable to the
155、Company.Discussion of these factors is incorporated by reference into and considered an integral part of Part II,Item 7,“Managements Discussion and Analysis of Financial Conditions and Results of Operations.”Risks Related to the Global Economy and Public Health Crises*The Companys results are impact
156、ed by the effects of,and changes in,worldwide economic,political,regulatory,international trade,geopolitical,and other external conditions.The Company operates in more than 70 countries and derives approximately 60 percent of its revenues from outside the United States,and,accordingly,the Companys o
157、perations and the execution of its business strategies and plans are subject to global competition and economic and geopolitical risks that are beyond its control,such as,among other things,disruptions in financial markets,economic downturns,military conflicts,public health emergencies such as COVID
158、-19,political changes and trends such as protectionism,economic nationalism resulting in government actions impacting international trade agreements or imposing trade restrictions such as tariffs and retaliatory counter measures,and government deficit reduction and other austerity measures in locati
159、ons or industries in which the Company operates.Further escalation of specific trade tensions,including those between the U.S.and China,or more broadly in global trade conflict,could adversely impact the Companys business and operations around the world.The Companys business is also impacted by soci
160、al,political,and labor conditions in locations in which the Company or its suppliers or customers operate;adverse changes in the availability and cost of capital;monetary policy;interest rates;inflation;recession;commodity prices;currency volatility or exchange control;ability to expatriate earnings
161、;and other laws and regulations in the jurisdictions in which the Company or its suppliers or customers operate.For example,changes in local economic condition or outlooks,such as lower economic growth rates in China,Europe,or other key markets,impact the demand or profitability of the Companys prod
162、ucts.The global economy has been impacted by the military conflict between Russia and Ukraine.The U.S.and other governments have imposed export controls on certain products and financial and economic sanctions on certain industry sectors and parties in Russia.3M suspended operations of its subsidiar
163、ies in Russia in March 2022 and,in September 2022,committed to a plan to exit the related net assets through an intended sale of the subsidiaries.3M also has other operations that source certain raw materials from suppliers in Russia and has experienced related supply disruption due to the conflict.
164、These geopolitical tensions could result in,among other things,cyberattacks,further supply chain disruptions impacting downstream customers,higher energy costs,lower consumer demand,and changes to foreign exchange rates and financial markets,any of which may adversely affect the Companys business an
165、d supply chain.Climate change,as well as related environmental and social regulations,may negatively impact the Company or its customers and suppliers,in terms of availability and cost of natural resources,sources and supply of energy,product demand and manufacturing,and the health and well-being of
166、 individuals and communities in which we or our suppliers or customers operate.*Unexpected events,such as those related to the coronavirus(COVID-19)public health crisis,may increase the Companys cost of doing business and disrupt the Companys operations.3M,as a global company,is impacted by unexpect
167、ed events,including war,acts of terrorism,public health crises(such as the COVID-19 pandemic),civil unrest,natural disasters,and severe weather in the locations in which the Company or its suppliers or customers operate,and these events have adversely affected,and could in the future adversely affec
168、t,the Companys operations and financial performance.For example,the global pandemic associated with COVID-19,including related evolving governmental responses to the pandemic,has significantly increased economic and demand uncertainty,and has impacted and will continue to impact 3Ms operations,inclu
169、ding its supply chain and its manufacturing and distribution capabilities.Although COVID-19 increased demand for certain 3M products,it also resulted in decreased demand from certain end markets,made it more difficult for 3M to serve customers,and resulted in conditions that had the potential to dam
170、age 3Ms reputation,including third-party price gouging,counterfeiting,and other illegal or fraudulent activities involving 3Ms products.Furthermore,COVID-19 has impacted and may further impact the broader economies of affected countries,including negatively impacting economic growth,the proper funct
171、ioning of financial and capital markets,foreign currency exchange rates,and interest rates.As the pandemic evolves,demand for personal protection products such as disposable respirators has experienced a decline from prior levels.3M is not able to predict the impact of unexpected events,such as the
172、COVID-19 pandemic,and unexpected events may have a material adverse effect on 3Ms consolidated results of operations or financial condition.10*Foreign currency exchange rates and fluctuations in those rates may affect the Companys ability to realize projected growth rates in its sales and earnings.B
173、ecause the Companys financial statements are denominated in U.S.dollars and approximately 60 percent of the Companys revenues are derived from outside the United States,the Companys results of operations and its ability to realize projected growth rates in sales and earnings could be adversely affec
174、ted if the U.S.dollar strengthens significantly against foreign currencies.For a discussion of the impact of foreign currency exchange rates on the Company,see Part II,Item 7,Managements Discussion and Analysis of Financial Condition and Results of Operations.Risks Related to Legal and Regulatory Pr
175、oceedings*The Company faces liabilities related to certain fluorochemicals,which could adversely impact our results.As previously reported,governments in the United States and internationally have increasingly been regulating a broad group of perfluoroalkyl and polyfluoroalkyl substances produced by
176、 the Company,collectively known as“PFAS.”3M has noticed several global regulatory trends related to PFAS,including declining emission standards and limits set as to the presence of certain compounds in various media,and the inclusion of a broadening group of PFAS.Developments in these and other glob
177、al regulatory trends may require additional actions by 3M,including investigation,remediation,and compliance,or may result in additional litigation and enforcement action costs.The Company has been voluntarily cooperating with various local,state,federal(primarily the U.S.Environmental Protection Ag
178、ency(EPA),and international agencies in their review of the environmental and health effects of certain PFAS produced by the Company.The PFAS group contains several categories and classes of durable chemicals and materials with properties that include oil,water,temperature,chemical,and fire resistan
179、ce,as well as electrical insulating properties.The strength of the carbon-fluorine bond also means that these compounds do not easily degrade.These characteristics have made PFAS substances critical to the manufacture of electronic devices such as cell phones,tablets,and semi-conductors.They are als
180、o used to help prevent contamination of medical products like surgical gowns and drapes.Commercial aircraft and low-emissions vehicles also rely on PFAS technology.PFAS compounds are manufactured by various companies,including 3M,and are used in everyday products,including some manufactured by 3M.As
181、 science and technology evolve and advance,and in response to evolving knowledge and the understanding that certain PFAS compounds had the potential to build up over time,3M announced in 2000 that we would voluntarily phase out production of two PFAS substances,perfluorooctanoate(PFOA)and perfluoroo
182、ctane sulfonate(PFOS)globally as a precautionary measure.We phased out of materials used to produce certain repellants and surfactant products,with most of these activities in the U.S.completed by the end of 2002.Phased out products included Aqueous Film Forming Foam(AFFF)and certain coatings for fo
183、od packaging,for example.The Company continues to review,control,or eliminate the presence of certain PFAS in purchased materials,as intended substances in products,or as byproducts of some of 3Ms current manufacturing processes,products,and waste streams.3M announced in December 2022 it will take t
184、wo actions:exiting all PFAS manufacturing by the end of 2025;and working to discontinue the use of PFAS across its product portfolio by the end of 2025.3Ms decision is based on careful consideration and a thorough evaluation of the evolving external landscape,including multiple factors such as accel
185、erating regulatory trends focused on reducing or eliminating the presence of PFAS in the environment and changing stakeholder expectations.The Company recognized a$0.8 billion pre-tax charge in the fourth quarter of 2022 associated with this announcement related to asset impairments,and will incur a
186、dditional expenses in connection with its exit activities.In addition,these two announced actions(the“exit”)involve risks,including the actual timing,costs,and financial impact of such exit;the Companys ability to complete such exit,on the anticipated timing or at all;potential governmental or regul
187、atory actions relating to PFAS manufacturing and production,or the Companys exit plans;the Companys ability to identify and manufacture acceptable substitutes for the discontinued products,and the possibility that such substitutes will not achieve the anticipated or desired commercial or operational
188、 results;potential litigation relating to the Companys exit plans;and the possibility that the planned exit will involve greater costs than anticipated,or otherwise have negative impacts on the Companys relationships with its customers and other counterparties.113M currently is defending lawsuits co
189、ncerning various PFAS-related products and chemistries,and is subject to unasserted and asserted claims and governmental regulatory proceedings and inquiries related to the production and use of PFAS in a variety of jurisdictions,as discussed in Note 16,“Commitments and Contingencies,”within the Not
190、es to Consolidated Financial Statements.3M has seen increased public and private lawsuits being filed on behalf of states,counties,cities,and utilities alleging,among other things,harm to the general public and damages to natural resources,some of which are pending in the Aqueous Film Forming Foam(A
191、FFF)multi-district litigation and some of which are pending in other jurisdictions.Various factors or developments in these and other disclosed actions could result in future charges that could have a material adverse effect on 3M.For example,we recorded a pre-tax charge of$897 million,inclusive of
192、legal fees and other related obligations,in the first quarter of 2018 with respect to the settlement of a matter brought by the State of Minnesota involving the presence of PFAS in the groundwater,surface water,fish or other aquatic life,and sediments in the state.Governmental inquiries,lawsuits,or
193、laws and regulations involving PFAS could lead to our incurring liability for damages or other costs,civil or criminal proceedings,the imposition of fines and penalties,or other remedies,including orders to conduct remediation,as well as restrictions on or added costs for our business operations goi
194、ng forward,including in the form of restrictions on discharges at our manufacturing facilities,requiring the installation of control technologies,suspension or shutdown of facility operations,switching costs in seeking alternative sources of supply,potential customer damage claims due to supply disr
195、uptions or otherwise,and reporting requirements or bans on PFAS and PFAS-containing products manufactured by the Company.*The Company is subject to risks related to international,federal,state,and local treaties,laws,and regulations,as well as compliance risks related to legal or regulatory requirem
196、ents,contract requirements,policies and practices,or other matters that require or encourage the Company or its suppliers,vendors,or channel partners to conduct business in a certain way.The outcome of legal and regulatory proceedings related to compliance with these treaties,laws,regulations,and re
197、quirements could have a material adverse effect on the Companys ability to execute its strategy and its results of operations.The Company is subject to risks related to international,federal,state,and local treaties,laws,and regulations,including those involving product liability;antitrust;intellect
198、ual property;environmental,health,and safety;tax;the U.S.Foreign Corrupt Practices Act and other anti-bribery laws;international import and export requirements and trade sanctions compliance;regulations of the U.S.Food and Drug Administration(FDA)and similar foreign agencies;U.S.federal healthcare p
199、rogram-related laws and regulations including the False Claims Act,anti-kickback laws,and the Sunshine Act;and other matters.The Company is also subject to compliance risks related to legal or regulatory requirements,contract requirements,policies and practices,or other matters that require or encou
200、rage the Company and its suppliers,vendors,or channel parties,to conduct business in a certain way.Legal compliance risks also include third-party risks where the Companys suppliers,vendors,or channel partners have business practices that are inconsistent with 3Ms Supplier Responsibility Code,3M per
201、formance requirements,or with legal requirements.The Companys results of operations could be adversely impacted if the costs to comply with these evolving treaties,laws,regulations,and requirements are greater than projected by the Company.In addition,the outcome of legal and regulatory proceedings
202、related to compliance with these treaties,laws,regulations,and requirements are difficult to reliably predict,may differ from the Companys expectations,and can result in,among other things,criminal or civil sanctions,including fines;limitations on the extent to which the Company can conduct business
203、;and private rights of action that result in litigation exposure,including expenses and costs incurred in connection with settlement or court proceedings,for the Company.Although the Company maintains general liability insurance to mitigate monetary exposure,the amount of liability that may result f
204、rom certain of these risks may not always be covered by,or could exceed,the applicable insurance coverage.Various factors or developments can lead the Company to change current estimates of liabilities and related insurance receivables where applicable,or make such estimates for matters previously n
205、ot susceptible of reasonable estimates,such as a significant judicial ruling or judgment,a significant settlement,significant regulatory developments or changes in applicable law.A future adverse ruling,settlement,or unfavorable development could result in future charges that could have a material a
206、dverse effect on the Companys results of operations or cash flows.In addition,negative publicity related to the matters noted above or other matters involving the Company may negatively impact the Companys reputation.The Company also relies on patent and other intellectual property protection,and ch
207、allenges to the Companys intellectual property rights,or claims that the Companys activities interfere with the intellectual property rights of a third party,could cause the Company to incur significant expenses to assert or defend against such claims,could result in reduced revenue,and could damage
208、 the Companys reputation,any of which could have an adverse effect on the Company.For a more detailed discussion of the legal proceedings involving the Company and the associated accounting estimates,see the discussion in Note 16,“Commitments and Contingencies,”within the Notes to Consolidated Finan
209、cial Statements.12Risks Related to Our Products and Customer Preferences*The Companys results are affected by competitive conditions and customer preferences.Demand for the Companys products,which impacts revenue and profit margins,is affected by,among other things,(i)the development and timing of t
210、he introduction of competitive products;(ii)the Companys pricing strategies;(iii)changes in customer order patterns,such as changes in the levels of inventory maintained by customers,vendors,or channel partners;(iv)changes in customers preferences for our products,including the success of products o
211、ffered by our competitors,and changes in customer designs for their products that can affect the demand for some of the Companys products;and(v)changes in the business environment related to disruptive technologies,such as artificial intelligence,block-chain,expanded analytics,and other enhanced lea
212、rnings from increasing volume of available data.*The Companys growth objectives are largely dependent on the timing and market acceptance of its new product offerings,including its ability to continually renew its pipeline of new products and to bring those products to market.This ability is subject
213、 to difficulties or delays in product development,such as the inability to identify viable new products,obtain adequate intellectual property protection,or gain market acceptance of new products.There are no guarantees that new products will prove to be commercially successful.*The Companys future r
214、esults are subject to vulnerability with respect to materials and fluctuations in the costs and availability of purchased components,compounds,raw materials,energy,and labor due to shortages,increased demand and wages,logistics,supply chain interruptions,manufacturing site disruptions,regulatory dev
215、elopments,natural disasters,and other disruptive factors.The Company depends on various components,compounds,raw materials,and energy(including oil and natural gas and their derivatives)supplied by others for the manufacturing of its products.Supplier relationships have been and could be interrupted
216、 in the future due to supplier material shortage,climate impacts,natural and other disasters,and other disruptive events such as military conflicts,or be terminated.Any sustained interruption in the Companys receipt of adequate supplies,supply chain disruptions impacting the distribution of products
217、,or disruption to key manufacturing sites operations due to natural and other disasters or events,such as government actions relating to discharge or emission permits or other legal or regulatory requirements,could have a material adverse effect on the Company.In addition,there can be no assurance t
218、hat the Companys processes to minimize volatility in component and material pricing will be successful or that future price fluctuations or shortages will not have a material adverse effect on the Company.13Risks Related to Our Business*The Company employs information technology systems to support i
219、ts business and collect,store,and use proprietary and confidential information,including ongoing phased implementation of an enterprise resource planning(ERP)system as part of business transformation on a worldwide basis over the next several years.Security and data breaches,cyberattacks,and other c
220、ybersecurity incidents involving the Companys information technology systems and infrastructure could disrupt or interfere with the Companys operations;result in the compromise and misappropriation of proprietary and confidential information belonging to the Company or its customers,suppliers,and em
221、ployees;and expose the Company to numerous expenses,liabilities,and other negative consequences,any or all of which could adversely impact the Companys business,reputation,and results of operations.In the ordinary course of business,the Company relies on centralized and local information technology
222、networks and systems,some of which are provided,hosted,or managed by vendors and other third parties,to process,transmit,and store electronic information,and to manage or support a variety of businesses.Additionally,the Company collects and stores certain data,including proprietary business informat
223、ion,and has access to confidential or personal information in certain of our businesses that is subject to privacy and cybersecurity laws,regulations,and customer-imposed controls.Third parties and threat actors,including organized criminals,nation-state,or nation-state supported actors,regularly at
224、tempt to gain unauthorized access to the Companys information technology networks and infrastructure,data,and other information,and many such attempts are increasingly sophisticated.Despite our cybersecurity and business continuity measures(including employee and third-party training,monitoring of n
225、etworks and systems,patching,maintenance,and backup of systems and data),the Companys information technology networks and infrastructure are still potentially susceptible to attack,compromise,damage,disruption,or shutdown,including as a result of the exploitation of known or unknown hardware or soft
226、ware vulnerabilities in our systems or in the systems of our vendors and third-party service providers,the introduction of computer viruses or ransomware,service or cloud provider disruptions or security breaches,phishing attempts,employee error or malfeasance,power outages,telecommunication or util
227、ity failures,systems failures,natural disasters,or other catastrophic events.The Companys increased adoption of remote working,initially driven by the pandemic,also introduces additional threats and risk of disruptions to our information technology networks and infrastructure.Despite our cybersecuri
228、ty measures,it is possible for security vulnerabilities or a cyberattack to remain undetected for an extended time period,up to and including several years,and the prioritization of decisions with respect to security measures and remediation of known vulnerabilities that we and the vendors and other
229、 third parties upon which we rely make may prove inadequate to protect against attacks.While we and third parties we utilize have experienced,and expect to continue to experience,cyberattacks on and breaches and disruptions of the Companys and the third parties information technology systems and inf
230、rastructure,we do not believe that any such incidents to date have had a material impact on the Company.Any cybersecurity incident or information technology network disruption could result in numerous negative consequences,including the risk of legal claims or proceedings,investigations or enforceme
231、nt actions by U.S.,state,or foreign regulators;liabilities or penalties under applicable laws and regulations,including privacy laws and regulations in the U.S.and other jurisdictions;interference with the Companys operations;the incurrence of remediation costs;loss of intellectual property protecti
232、on;the loss of customer,supplier,or employee relationships;and damage to the Companys reputation,any of which could adversely affect the Companys business.Although the Company maintains insurance coverage for various cybersecurity and business continuity risks,there can be no guarantee that all cost
233、s or losses incurred will be fully insured.*Acquisitions,strategic alliances,divestitures,and other strategic events resulting from portfolio management actions and other evolving business strategies,and possible organizational restructuring,could affect future results.The Company monitors its busin
234、ess portfolio and organizational structure and has made and may continue to make acquisitions,strategic alliances,divestitures,and changes to its organizational structure.With respect to acquisitions and strategic alliances,future results will be affected by,as applicable,the Companys ability to int
235、egrate acquired businesses quickly and obtain the anticipated synergies and the Companys ability to operationalize and derive anticipated benefits from alliances.Divestitures may include continued financial involvement in the divested businesses,such as through guarantees or other financial arrangem
236、ents,following the transaction,will result in the loss of revenue associated with the businesses that are divested,and may result in unexpected liabilities through indemnification or other risk-shifting mechanisms in the applicable divestiture agreement.Any of the foregoing could adversely affect th
237、e Companys future results.14*The Companys future results may be affected by its operational execution,including scenarios where the Company generates fewer productivity improvements than planned.The Companys financial results depend on the successful execution of its business operating plans.The Com
238、pany utilizes various tools,such as continuous improvement,to improve productivity and reduce expenses and engages in ongoing global business transformation to improve operational efficiency,productivity,and the speed and efficiency with which it serves customers.This is enabled by the ongoing multi
239、-year phased implementation of an ERP system.There can be no assurance that we will realize the benefits of such activities,or that such activities will not result in unexpected consequences,such as a reduced ability to generate sales or provide the experience that our customers,suppliers,vendors,an
240、d channel partners expect from us.In addition,the ability to adapt to business model and other changes,including responding to evolving customer needs and service expectations,are important,and,if not done successfully,could negatively impact the Companys ability to win new business and enhance reve
241、nue and 3Ms brand.Operational challenges,including those related to customer service,pace of change and productivity improvements,could have a material adverse effect on the Companys business,financial conditions and results of operations.Risks Related to Financial and Capital Markets and Tax Matter
242、s*The Companys defined benefit pension and postretirement plans are subject to financial market risks that could adversely impact our results.The performance of financial markets and discount rates impact the Companys funding obligations under its defined benefit plans.Significant changes in market
243、interest rates,decreases in the fair value of plan assets and investment losses on plan assets,and legislative or regulatory changes relating to defined benefit plan funding may increase the Companys funding obligations and adversely impact its results of operations and cash flows.*Change in the Com
244、panys credit ratings could increase cost of funding.The Companys credit ratings are important to 3Ms cost of capital.The major rating agencies routinely evaluate the Companys credit profile and assign debt ratings to 3M.This evaluation is based on a number of factors,which include financial strength
245、,business and financial risk,as well as transparency with rating agencies and timeliness of financial reporting.As of December 2022,3M has a credit rating of A1,stable outlook from Moodys Investors Service,and a credit rating of A+,CreditWatch negative from S&P Global Ratings.The Companys credit rat
246、ings have served to lower 3Ms borrowing costs and facilitate access to a variety of lenders.The addition of further leverage to the Companys capital structure could impact 3Ms credit ratings in the future.Failure to maintain strong investment grade ratings would adversely affect the Companys cost of
247、 funding and could adversely affect liquidity and access to capital markets.*Changes in tax rates,laws,or regulations could adversely impact our financial results.The Companys business is subject to tax-related external conditions,such as tax rates,tax laws and regulations,changing political environ
248、ments in the U.S.and foreign jurisdictions that impact tax examination,and assessment and enforcement approaches.In addition,changes in tax laws including further regulatory developments arising from U.S.or international tax reform legislation could result in a tax expense or benefit recorded to the
249、 Companys Consolidated Statement of Earnings.In connection with the Base Erosion and Profit Shifting(BEPS)Integrated Framework provided by Organization for Economic Cooperation and Development(OECD),determination of multi-jurisdictional taxation rights and the rate of tax applicable to certain types
250、 of income may be subject to potential change.Due to the evolving nature of global tax laws and regulations and compliance approaches,it is currently not possible to assess the ultimate impact of these actions on our financial statements,but these actions could have an adverse impact on the Companys
251、 financial results.15Risks Related to the Voluntary Chapter 11 Proceedings Initiated by the Companys Aearo Entities*The Company is subject to risks related to its subsidiaries chapter 11 proceedings.On July 26,2022,Aearo Technologies and certain of its related entities(“Aearo Entities),all wholly ow
252、ned subsidiaries of the Company,voluntarily initiated chapter 11 proceedings seeking bankruptcy court supervision to establish a trust funded by the Company to address potential liabilities related to Dual-Ended Combat Arms Version 2 earplugs and mask/respirator products historically manufactured an
253、d sold by Aearo Entities.This represents a change in strategy for managing the Combat Arms Version 2 earplugs and Aearo respirator mask/asbestos alleged litigation liabilities.Aearo Entities were acquired by the Company in 2008 and they,along with its related subsidiaries,have operated as Company su
254、bsidiaries since that time.3M has entered into a funding agreement with Aearo Entities and committed to fund a trust to satisfy all claims determined to be entitled to compensation,and to support Aearo Entities as they continue to operate during the chapter 11 proceedings.There are a number of risks
255、 and uncertainties associated with the chapter 11 proceedings,including,among others,those related to:legal risks related to the chapter 11 proceedings;potential impacts to the Companys reputation and relationships with its customers,suppliers,federal contracting officials,employees,regulators,and o
256、ther counterparties and community members;impacts to the Companys liquidity or results of operations,including risks related to the amount that will be necessary to fully and finally resolve all of the Companys obligations to make payments to resolve such claims under the terms of its funding and in
257、demnification agreement with Aearo Entities;the costs of chapter 11 proceedings and length of time necessary to resolve the cases;and Aearo Entities ability to reach acceptable agreements with claimants and navigate the chapter 11 proceedings to obtain approval and consummation of a plan of reorgani
258、zation.Due to the inherent uncertainty of litigation,the Company cannot predict the timing,outcome,or financial impact of this matter,or any other ongoing or future litigation.Risks Related to the Planned Spin-off of the Companys Health Care Business*The Company is subject to risks related to its pl
259、an to spin off its Health Care business.On July 26,2022,the Company announced its intent to spin off its Health Care business,resulting in two standalone public companies,in a transaction that is intended to be tax-free for the Companys stockholders for U.S.federal income tax purposes.The spin-off w
260、ill be subject to the satisfaction of a number of conditions,including final approval by the Companys board of directors,the filing and effectiveness of a Form 10 registration statement,the receipt of a private letter ruling from the Internal Revenue Service and a tax opinion from external counsel,a
261、nd other customary conditions.The failure to satisfy all of the required conditions,many of which are outside of the Companys control,could delay the completion of the spin-off relative to the anticipated timeline or prevent it from occurring.Any delay in the completion of the spin-off or any change
262、 to the anticipated terms of the transaction could reduce the expected benefits of the transaction,or delay the time at which such benefits are realized.There can also be no assurance that the anticipated benefits of the transaction will be realized if the spin-off is completed,or that the costs or
263、dis-synergies of the transaction(including costs of related restructuring transactions),will not exceed the anticipated amounts.Whether or not the spin-off is ultimately completed,the pendency of the transaction may impose challenges on the Company and its business,including potential business disru
264、ption;the diversion of management time on matters relating to the transaction;the impact on the Companys ability to retain talent;and potential impacts on the Companys relationships with its customers,employees,regulators,and other counterparties.In addition,while it is intended that the transaction
265、 would be tax-free to the Companys stockholders for U.S.federal income tax purposes,there is no assurance that the transactions will qualify for this treatment.If the spin-off was ultimately determined to be taxable,the Company,the Health Care business,or the Companys stockholders could incur income
266、 tax liabilities that could be significant.Any of these factors could negatively impact our business,financial condition,results of operations,cash flows,and the price of our common stock.Item 1B.Unresolved Staff Comments.None.Item 2.Properties.In the U.S.,3Ms general offices,corporate research labo
267、ratories,and certain division laboratories are located in St.Paul,Minnesota.The Company operates 61 manufacturing facilities in 29 states.Internationally,the Company operates 83 manufacturing and converting facilities in 28 countries.3M owns the majority of its physical properties.3Ms physical facil
268、ities are highly suitable for the purposes for which they were designed.Because 3M is a global enterprise characterized by substantial inter-segment cooperation,properties are often used by multiple business segments.16Item 3.Legal Proceedings.Discussion of legal matters is incorporated by reference
269、 from Part II,Item 8,Note 16,“Commitments and Contingencies,”of this document,and should be considered an integral part of Part I,Item 3,“Legal Proceedings.”Item 4.Mine Safety Disclosures.Pursuant to Section 1503 of the Dodd-Frank Wall Street Reform and Consumer Protection Act(the“Act”),the Company
270、is required to disclose,in connection with the mines it operates,information concerning mine safety violations or other regulatory matters in its periodic reports filed with the SEC.The information concerning mine safety violations or other regulatory matters required by Section 1503(a)of the Act is
271、 included in Exhibit 95 to this annual report.17PART IIItem 5.Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities.Equity compensation plans information is incorporated by reference from Part III,Item 12,“Security Ownership of Certain Beneficial
272、Owners and Management and Related Stockholder Matters,”of this document,and should be considered an integral part of Item 5.At January 31,2023,there were 62,488 shareholders of record.3Ms stock ticker symbol is MMM and is listed on the New York Stock Exchange,Inc.(NYSE),the Chicago Stock Exchange,In
273、c.,and the SIX Swiss Exchange.Cash dividends declared and paid totaled$1.49 and$1.48 per share for each quarter in 2022 and 2021,respectively.3M typically declares and pays dividends in the same quarter.Issuer Purchases of Equity SecuritiesRepurchases of 3M common stock are made to support the Compa
274、nys stock-based employee compensation plans and for other corporate purposes.In November 2018,3Ms Board of Directors replaced the Companys February 2016 repurchase program with a new repurchase program.This new program authorizes the repurchase of up to$10 billion of 3Ms outstanding common stock,wit
275、h no pre-established end date.Issuer Purchases of EquitySecurities(registered pursuant toSection 12 of the Exchange Act)PeriodTotal Number of Shares Purchased(1)Average Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)Maximum Approximate Dollar V
276、alue of Shares that May Yet Be Purchased under the Plans or Programs(Millions)January 1-31,2022 1,458,623$176.61 1,458,623$5,329 February 1-28,2022 1,445,206 147.03 1,441,534 5,117 March 1-31,2022 1,871,301 145.61 1,871,301 4,845 January 1-March 31,2022 4,775,130 155.51 4,771,458 April 1-30,2022 4,8
277、45 May 1-31,2022 4,845 June 1-30,2022 4,845 April 1-June 30,2022 July 1-31,2022 4,845 August 1-31,2022 4,845 September 1-30,2022 1,665,747 114.10 1,665,747 4,655 July 1-September 30,2022 1,665,747 114.10 1,665,747 October 1-31,2022 2,831,831 114.21 2,831,831 4,331 November 1-30,2022 1,002,117 126.87
278、 1,002,117 4,204 December 1-31,2022 378,006 125.91 378,006 4,157 October 1-December 31,2022 4,211,954 118.27 4,211,954 January 1-December 31,2022 10,652,831 134.31 10,649,159 _(1)The total number of shares purchased includes:(i)shares purchased under the Boards authorizations described above,and(ii)
279、shares purchased in connection with the exercise of stock options.(2)The total number of shares purchased as part of publicly announced plans or programs includes shares purchased under the Boards authorizations described above.Item 6.Reserved.18Item 7.Managements Discussion and Analysis of Financia
280、l Condition and Results of Operations.Managements Discussion and Analysis of Financial Condition and Results of Operations(MD&A)is designed to provide a reader of 3Ms financial statements with a narrative from the perspective of management.3Ms MD&A is presented in eight sections:OverviewResults of O
281、perationsPerformance by Business SegmentPerformance by Geographic AreaCritical Accounting EstimatesNew Accounting PronouncementsFinancial Condition and LiquidityFinancial InstrumentsForward-looking statements in Item 7 may involve risks and uncertainties that could cause results to differ materially
282、 from those projected(refer to the section entitled“Cautionary Note Concerning Factors That May Affect Future Results”in Item 1 and the risk factors provided in Item 1A for discussion of these risks and uncertainties).Additional information about results of operations and financial condition for 202
283、1 and 2020 can be found in“Managements Discussion and Analysis of Financial Condition and Results of Operations”sections in 3Ms Current Report on Form 8-K dated April 26,2022(which updated 3Ms 2021 Annual Report on Form 10-K).OVERVIEW3M is a diversified global manufacturer,technology innovator and m
284、arketer of a wide variety of products and services.Effective in the first quarter of 2022,3M made the following changes:Changes in measure of segment operating performance used by 3Ms chief operating decision makerimpacting 3Ms disclosed measure of segment profit/loss(business segment operating inco
285、me).See additional information in Note 19.3Ms disclosed disaggregated revenue was also updated as a result of the changes in segment reporting.See additional information in Note 2.Changes to non-GAAP measures-certain amounts adjusted for special items.Refer to the Certain amounts adjusted for specia
286、l items-(non-GAAP measures)section below for additional information.Information provided herein reflects the impact of these changes for all periods presented.3M manages its operations in four operating business segments:Safety and Industrial;Transportation and Electronics;Health Care;and Consumer.F
287、rom a geographic perspective,any references to EMEA refer to Europe,Middle East and Africa on a combined basis.References are made to organic sales change(which include both organic volume impacts and selling price impacts),which is defined as the change in net sales,absent the separate impacts on s
288、ales from foreign currency translation and acquisitions,net of divestitures.Acquisition and divestiture sales change impacts,if any,are measured separately for the first twelve months post-transaction.3M believes this information is useful to investors and management in understanding ongoing operati
289、ons and in analysis of ongoing operating trends.3M is impacted by the global pandemic and related effects associated with the coronavirus(COVID-19).Risk factors with respect to COVID-19 can be found in Item 1A“Risk Factors”in this document.Given the diversity of 3Ms businesses,some of the factors re
290、lative to COVID-19 increase the demand for 3M products,while others decrease demand or make it more difficult for 3M to serve customers.Certain resulting impacts are referenced in various discussions within this Item 7.Overall,the impact of the COVID-19 pandemic on 3Ms consolidated results of operat
291、ions was primarily driven by factors related to changes in demand for products and disruption in global supply chains.3M is not able to predict the extent to which the COVID-19 pandemic may have a material effect on its consolidated results of operations or financial condition.In 2022,3Ms costs for
292、significant litigation(see Certain amounts adjusted for special items-(non-GAAP measures section below)totaled approximately$2.3 billion pre-tax and included,among things,pre-tax charges associated with steps toward resolving Combat Arms Earplugs litigation and associated with additional commitments
293、 to address PFAS-related matters at its Zwijndrecht,Belgium site(approximately$1.3 billion and$355 million,respectively,in 2022).These matters are further discussed in Note 16.In 2022,3M also completed the split-off of its Food Safety Division business resulting in a pre-tax gain of$2.7 billion and
294、committed to a plan to exit PFAS manufacturing by the end of 2025 resulting in a 2022 pre-tax charge of$0.8 billion related to impairment as discussed in Note 15.See Certain amounts adjusted for special items-(non-GAAP measures)section below for additional discussion of these and other special items
295、.193M Belgium has experienced interruptions to portions of the manufacturing at its site in Zwijndrecht,Belgium,as more fully discussed in Note 16.As discussed in Note 16,3M Belgium received agreement with authorities in June 2022 to begin the process toward restarting operations at the Zwijndrecht
296、facility.3M Belgium has provided information required by the Flemish environmental authorities to receive agreement from the authorities to restart operations,and has done so for production or sampling purposes.Belgian government authorities continue to maintain oversight of these operations and com
297、pliance with applicable requirements.In December 2022,3M Belgium received an official infraction report from the Flemish Environmental Inspectorate and continues to work with the government authorities to comply with applicable legal requirements.See further discussion in Note 16.3M is also impacted
298、 by the Russia-Ukraine conflict.In light of a number of factors,3M suspended operations of its subsidiaries in Russia in March 2022,the net sales of which were less than one percent of 3Ms consolidated net sales for 2021.Further,in September 2022,management committed to a plan to exit and dispose of
299、 the related net assets through an intended sale of the subsidiaries.The associated charge in 2022 related to this action is further discussed in Note 15.3M also has other operations that source certain raw materials from suppliers in Russia and have experienced related supply disruption due to the
300、conflict.Further supply disruption could lead to downstream customer impacts.Though 3M monitors relevant factors as well as options to mitigate potential impacts,it is not able to predict the extent to which these circumstances may have a material effect on 3Ms consolidated results of operations or
301、financial condition.Relevant risk factors can be found in Item 1A“Risk Factors”in this Annual Report on Form 10-K.Operating income margin and earnings per share attributable to 3M common shareholders diluted:The following table provides the increases(decreases)in operating income margins and diluted
302、 earnings per share.Year ended December 31,20222021Percent of net salesEarnings per diluted sharePercent of net salesEarnings per diluted shareSame period last year 20.8%$10.12 22.3%$9.36 Net costs for significant litigation 1.4 0.61 1.0 0.37 Gain on business divestitures (1.2)(0.52)Divestiture-rela
303、ted restructuring actions 0.2 0.08 Total special items 1.4 0.61 (0.07)Same period last year,excluding special items 22.2 10.73 22.3 9.29 Increase/(decrease)due to:Total organic growth/productivity and other 1.0 0.56 0.7 1.07 Raw material impact(2.4)(1.13)(0.8)(0.27)Divestitures (0.05)(0.05)Foreign e
304、xchange impacts (0.39)0.16 Other expense(income),netN/A 0.02 N/A 0.27 Income tax rateN/A 0.06 N/A 0.32 Shares of common stock outstandingN/A 0.30 N/A(0.06)Current period,excluding special items 20.8 10.10 22.2 10.73 Net costs for significant litigation(6.7)(3.20)(1.4)(0.61)Divestiture costs(0.2)(0.0
305、8)Gain on business divestitures 8.0 4.73 Divestiture-related restructuring actions(0.1)(0.05)Russia exit charges(0.3)(0.20)PFAS manufacturing exit costs(2.4)(1.12)Total special items(1.7)0.08 (1.4)(0.61)Current period 19.1%$10.18 20.8%$10.12 The Company refers to various adjusted amounts or measures
306、 on an“adjusted basis”.These exclude special items.These non-GAAP measures are further described and reconciled to the most directly comparable GAAP financial measures in the Certain amounts adjusted for special items-(non-GAAP measures)section below.A discussion related to the components of year-on
307、-year changes in operating income margin and earnings per diluted share follows:20Organic growth/productivity and other:In 2022,the following components impacted operating margins and earnings per diluted share year-on-year:Declines in disposable respirator demand year-on-year negatively impacted op
308、erating margins by 0.3 percent and earnings per share by$0.29.Remaining organic growth/productivity and other impacts resulted in a net year-on-year benefit$0.85 to earnings per share and 1.3 percent to operating margins which was impacted by the following:Benefits from strong pricing,spending disci
309、pline and 2021 restructuring actionsManufacturing headwinds from global supply chain challenges;geopolitical impacts due to the Russia/Ukraine conflict as well as ongoing COVID-related challenges in ChinaSecond quarter of 2021 benefit of$91 million pre-tax($0.12 per share after tax)from the impact o
310、f the favorable decision of the Brazilian Supreme Court regarding the calculation of past social taxesIncreased investments in growth,productivity and sustainability In 2021,organic volume growth and ongoing cost management increased operating income margins and earnings per diluted share year-on-ye
311、ar offset by manufacturing headwinds from global supply chain challenges and increased compensation/benefit costs.The following also impacted results or provide additional information:2021 benefit of$91 million pre-tax($0.12 per share after tax)from a favorable Brazilian Supreme Court decision that
312、concluded on the impact of state value-added tax when determining Brazils federal sales-based social taxessentially lowering the social tax that 3M should have paid in prior periods.3M continued prioritization of investments in growth and sustainability.2021 benefit from higher selling prices,restru
313、cturing actions taken in 2020 and positive/negative impact of year-over-year change in non-divestiture-related restructuring charges,net of adjustments,for respective periods.Note 5 provides additional information relative to restructuring actions.Lower year-on-year net gains related to certain prop
314、erty sales.COVID-impacts recognized on certain assets in 2020.In 2021,higher defined benefit pension and postretirement service cost increased expense year-on-year.Raw material impact:In 2022,3M continued to experience inflationary pressures with year-on-year increases in raw material and logistics
315、costs driven by many geopolitical,logistics,and disruptive events that caused imbalance in the global supply chain.In 2021,3M experienced higher raw material,logistics,and outsourced manufacturing costs from strong end-market demand,ongoing COVID-19 and related global supply chain challenges that we
316、re further magnified by extreme weather events,such as February 2021 winter storm Uri in the U.S.Acquisitions/divestitures:Divestiture impacts in 2022 include lost income from divested businesses and remaining stranded costs(net of transition arrangement income).3M completed the split-off of the Foo
317、d Safety business in September 2022(discussed in Note 3).The impact also includes lost income from deconsolidation of the Aearo Entities in July 2022(discussed in Note 16).Divestiture impacts in 2021 are primarily comprised of the lost income from the divestiture of the Companys drug delivery busine
318、ss(sale completed in May 2020).Foreign exchange impacts:Foreign currency impacts(net of hedging)decreased operating income by approximately$271 million and$103 million(or a decrease in pre-tax earnings of approximately$280 million and$119 million)year-on-year for 2022 and 2021,respectively.These est
319、imates include:(a)the effects of year-on-year changes in exchange rates on translating current period functional currency profits into U.S.dollars and on current period non-functional currency denominated purchases or transfers of goods between 3M operations,and(b)year-on-year changes in transaction
320、 gains and losses,including derivative instruments designed to reduce foreign currency exchange rate risks.Other expense(income),net:Lower income related to higher non-service cost components of pension and postretirement expense increased expense year-on-year for 2022.Higher income related to non-s
321、ervice cost components of pension and postretirement expense decreased expense year-on-year for 2021.Interest expense(net of interest income)decreased in 2022 compared to the same period year-on-year driven by debt maturities in the ordinary course and interest income on invested cash.Interest expen
322、se(net of interest income)decreased in 2021 compared to the same period year-on-year due in part to interest expense savings from early debt extinguishment actions in 2020.21Income tax rate:Certain items above reflect specific income tax rates associated therewith.Overall,the effective tax rates for
323、 2022,2021,and 2020 were 9.6 percent,17.8 percent,and 19.7 percent,respectively.These reflect a decrease of 8.2 percentage points from 2021 to 2022 and a decrease of 1.9 percentage points from 2020 to 2021.The primary factors that decreased the Companys effective tax rate for 2022 were the tax effic
324、ient structure associated with the gain on split-off of the Food Safety business(see Note 3).The primary factors that decreased the Companys effective tax rate in 2021 were geographical income mix and favorable adjustments in 2021 related to impacts of U.S.international tax provisions.On an adjusted
325、 basis(as discussed below),the effective tax rates for 2022,2021,and 2020 were 17.7 percent,18.1 percent,and 20.5 percent,respectively.These reflect a decrease of 0.4 percent percentage points from 2021 to 2022 and a decrease of 2.4 percentage points from 2020 to 2021.Shares of common stock outstand
326、ing:Lower shares outstanding increased earnings per share per diluted share for 2022,while higher shares outstanding decreased earnings per share diluted share for 2021.Certain amounts adjusted for special items-(non-GAAP measures):In addition to reporting financial results in accordance with U.S.GA
327、AP,3M also provides non-GAAP measures that adjust for the impacts of special items.For the periods presented,special items include the items described below.Operating income,segment operating income(loss),income before taxes,net income,earnings per share,and the effective tax rate are all measures f
328、or which 3M provides the reported GAAP measure and a measure adjusted for special items.The adjusted measures are not in accordance with,nor are they a substitute for,GAAP measures.While the Company includes certain items in its measure of segment operating performance,it also considers these non-GA
329、AP measures in evaluating and managing its operations.The Company believes that discussion of results adjusted for special items is useful to investors in understanding underlying business performance,while also providing additional transparency to the special items.Special items impacting operating
330、 income are reflected in Corporate and Unallocated,except as described below with respect to net costs for significant litigation and PFAS manufacturing exit costs.The determination of these items may not be comparable to similarly titled measures used by other companies.In the first quarter of 2022
331、,the Company changed the extent of matters and charges/benefits it includes within special items with respect to net costs for significant litigation.Previously,3M included net costs,when significant,associated with changes in accrued liabilities related to respirator mask/asbestos litigation and PF
332、AS-related other environmental matters,along with the associated tax impacts.These non-GAAP measure changes involved including net costs for litigation related to 3Ms Combat Arms Earplugs,expanding net costs to include external legal fees and insurance recoveries associated with the applicable matte
333、rs in addition to changes in accrued liabilities,and to include all such net costs for the applicable matters,not just when considered significant.Information provided herein reflects the impact of these changes for all periods presented.Special items for the periods presented include:Net costs for significant litigation:These relate to 3Ms respirator mask/asbestos,PFAS-related other environmental