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Restructuring Actions | 6 Months Ended
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Jun. 30, 2020
Restructuring Actions |
Restructuring Actions | NOTE 5. Restructuring Actions 2020 Restructuring Actions: ​ Divestiture-Related Restructuring ​ During the second quarter of 2020, following the divestiture of substantially all of the drug delivery business (see Note 3) management approved and committed to undertake certain restructuring actions addressing corporate functional costs and manufacturing footprint across 3M in relation to the magnitude of amounts previously allocated/burdened to the divested business. These actions affected approximately 1,300 positions worldwide and resulted in a second quarter 2020 pre-tax charge of $55 million, within Corporate and Unallocated. The divestiture-related restructuring actions were recorded in the income statement as follows: ​
​ | ​ | ​ | ​ | ​
(Millions) |  | Second Quarter 2020 |
Cost of sales | ​ | $ | 42 | ​
Selling, general and administrative expenses | ​ |  | 12 | ​
Research, development and related expenses | ​ |  | 1 | ​
Total operating income impact | ​ | $ | 55 | ​
​ Divestiture-related restructuring actions, including cash and non-cash impacts, follow: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Millions) |  | Employee-Related |  | Asset-Related and Other |  | Total |
Expense incurred in the second quarter of 2020 | ​ | $ | 32 | ​ | $ | 23 | ​ | $ | 55 | ​
Non-cash changes | ​ | ​ | — | ​ | ​ | (11) | ​ | ​ | (11) | ​
Accrued divestiture-related restructuring action balances as of June 30, 2020 | ​ | $ | 32 | ​ | $ | 12 | ​ | $ | 44 | ​
​ Remaining activities related to this divestiture-related restructuring are expected to be largely completed through the second quarter of 2021. ​ Other Restructuring ​ Additionally, in the second quarter of 2020, management approved and committed to undertake certain restructuring actions addressing structural enterprise costs and operations in certain end markets as a result of the COVID-19 pandemic and related economic impacts. These actions affected approximately 400 positions worldwide and resulted in a second quarter 2020 pre-tax charge of $58 million. The restructuring charges were recorded in the income statement as follows: ​
​ | ​ | ​ | ​ | ​
(Millions) |  | Second Quarter 2020 |
Cost of sales | ​ | $ | 13 | ​
Selling, general and administrative expenses | ​ |  | 37 | ​
Research, development and related expenses | ​ |  | 8 | ​
Total operating income impact | ​ | $ | 58 | ​
​ ​ The business segment operating income impact of these restructuring charges are summarized by business segment as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Second Quarter 2020 | ​
(Millions) |  | Employee-Related |  | Asset-Related |  | Total |
Safety and Industrial | ​ | $ | 7 | ​ | $ | — | ​ | $ | 7 | ​
Transportation and Electronics | ​ | ​ | 11 | ​ | ​ | — | ​ | ​ | 11 | ​
Health Care | ​ | ​ | 12 | ​ | ​ | — | ​ | ​ | 12 | ​
Consumer | ​ | ​ | 5 | ​ | ​ | — | ​ | ​ | 5 | ​
Corporate and Unallocated | ​ |  | — | ​ |  | 23 | ​ |  | 23 | ​
Total Operating Expense | ​ | $ | 35 | ​ | $ | 23 | ​ | $ | 58 | ​
​ Restructuring actions, including cash and non-cash impacts, follow: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Millions) |  | Employee-Related |  | Asset-Related |  | Total |
Expense incurred in the second quarter of 2020 | ​ | $ | 35 | ​ | $ | 23 | ​ | $ | 58 | ​
Non-cash changes | ​ | ​ | — | ​ | ​ | (23) | ​ | ​ | (23) | ​
Accrued restructuring action balances as of June 30, 2020 | ​ | $ | 35 | ​ | $ | — | ​ | $ | 35 | ​
​ Remaining activities related to this restructuring are expected to be largely completed through the second quarter of 2021. ​ 2019 Restructuring Actions: ​ As described in Note 5 in 3M’s 2019 Annual Report on Form 10-K, during the second quarter of 2019, in light of slower than expected 2019 sales, management approved and committed to undertake certain restructuring actions. These actions impacted approximately 2,000 positions worldwide, including attrition. The Company recorded second quarter 2019 pre-tax charges of $148 million. The restructuring charges were recorded in the income statement as follows: ​
​ | ​ | ​ | ​ | ​
(Millions) |  | Second Quarter 2019 |
Cost of sales | ​ | $ | 18 | ​
Selling, general and administrative expenses | ​ |  | 89 | ​
Research, development and related expenses | ​ |  | 5 | ​
Total operating income impact | ​ | ​ | 112 | ​
Other expense (income), net | ​ | ​ | 36 | ​
Total income before taxes impact | ​ | $ | 148 | ​
​ The operating income impact of these restructuring charges are summarized by business segment as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Second Quarter 2019 | ​
(Millions) |  | Employee-Related |  | Asset-Related |  | Total |
Safety and Industrial | ​ | $ | 11 | ​ | $ | — | ​ | $ | 11 | ​
Transportation and Electronics | ​ | ​ | 8 | ​ | ​ | — | ​ | ​ | 8 | ​
Health Care | ​ | ​ | 6 | ​ | ​ | — | ​ | ​ | 6 | ​
Consumer | ​ | ​ | 5 | ​ | ​ | — | ​ | ​ | 5 | ​
Corporate and Unallocated | ​ |  | 42 | ​ |  | 40 | ​ |  | 82 | ​
Total Operating Expense | ​ | $ | 72 | ​ | $ | 40 | ​ | $ | 112 | ​
​ The second quarter 2019 actions included a voluntary early retirement incentive (further discussed in Note 11), the charge for which is included in other expense (income), net above. ​ ​ Restructuring action activity from 2019, which includes both second and fourth quarter actions, including cash and non-cash impacts, follow: ​
​ | ​ | ​ | ​ | ​
(Millions) |  | Employee-Related |
Accrued restructuring action balances as of December 31, 2019 | ​ | $ | 140 | ​
Cash payments | ​ |  | (14) | ​
Adjustments | ​ | ​ | (23) | ​
Accrued restructuring action balances as of June 30, 2020 | ​ | $ | 103 | ​
​ Remaining activities related to this restructuring are expected to be completed largely through early 2021.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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