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Restructuring Actions | 12 Months Ended
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Dec. 31, 2021
Restructuring and Related Activities [Abstract] |
Restructuring Actions | Restructuring Actions 2021 and 2020 Restructuring Actions: Operational/Marketing Capability Restructuring In late 2020, 3M announced it would undertake certain actions to further enhance its operations and marketing capabilities to take advantage of certain global market trends while de-prioritizing investments in slower-growth end markets. During the fourth quarter of 2020, management approved and committed to undertake associated restructuring actions impacting approximately 2,100 positions resulting in a pre-tax charge of $137 million. In 2021, management approved and committed to undertake additional actions under this initiative resulting in a pre-tax charge of $124 million. Remaining activities related to the restructuring actions approved and committed under this initiative are expected to be largely completed through the third quarter of 2022. 3M expects to commit to further actions under this initiative through early 2022. This aggregate initiative, begun in 2020 and continuing through early 2022, is expected to impact approximately 3,100 positions worldwide with an expected pre-tax charge approaching $300 million over that period. The related restructuring charges were recorded in the income statement as follows:
(Millions) |  | 2021 |  | 2020
Cost of sales |  | $ | 19 |  |  | $ | 51 |
Selling, general and administrative expenses |  | 88 |  | 79 |
Research, development and related expenses |  | 17 |  | 7 |
Total operating income impact |  | $ | 124 |  |  | $ | 137 |
The business segment operating income impact of these restructuring charges is summarized as follows:
|  | 2021 |  | 2020
(Millions) |  | Employee Related |  | Employee Related |  | Asset-Related and Other |  | Total
Safety and Industrial |  | 30 |  | $ | 36 |  |  | $ | 7 |  |  | $ | 43 |
Transportation and Electronics |  | 24 |  | 16 |  |  | 12 |  |  | 28 |
Health Care |  | 21 |  | 23 |  |  | 3 |  |  | 26 |
Consumer |  | 7 |  | 10 |  |  | 1 |  |  | 11 |
Corporate and Unallocated |  | 42 |  | 16 |  |  | 13 |  |  | 29 |
Total Operating Expense |  | $ | 124 |  |  | $ | 101 |  |  | $ | 36 |  |  | $ | 137 |
Restructuring actions, including cash and non-cash impacts, follow:
(Millions) |  | Employee- Related |  | Asset-Related and Other |  | Total
Expense incurred in the fourth quarter of 2020 |  | $ | 101 |  |  | $ | 36 |  |  | $ | 137 |
Non-cash changes |  | — |  |  | (36) |  |  | (36) |
Accrued restructuring action balances as of December 31, 2020 |  | 101 |  |  | — |  |  | 101 |
Incremental expense incurred in 2021 |  | 124 |  |  | — |  |  | 124 |
Cash Payments |  | (127) |  |  | — |  |  | (127) |
Adjustments |  | (11) |  |  | — |  |  | (11) |
Accrued restructuring action balances as of December 31, 2021 |  | $ | 87 |  |  | $ | — |  |  | $ | 87 |
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) |  | 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 |  | — |  |  | (14) |  |  | (14) |
Cash payments |  | (14) |  |  | — |  |  | (14) |
Adjustments |  | (3) |  |  | — |  |  | (3) |
Accrued restructuring action balance as of December 31, 2020 |  | 15 |  |  | 9 |  |  | 24 |
Cash Payments |  | (5) |  |  | — |  |  | (5) |
Adjustments |  | (1) |  |  | — |  |  | (1) |
Accrued restructuring action balance as of June 30, 2021 |  | $ | 9 |  |  | $ | 9 |  |  | $ | 18 |
Remaining activities related to this divestiture-related restructuring were largely completed in the third 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) |  | 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 is summarized as follows:
|  | 2020
(Millions) |  | Employee-Related |  | Asset-Related and Other |  | 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) |
Cash payments |  | (2) |  |  | — |  |  | (2) |
Adjustments |  | (9) |  |  | — |  |  | (9) |
Accrued restructuring action balances as of December 31, 2020 |  | 24 |  |  | — |  |  | 24 |
Cash Payments |  | (4) |  |  | — |  |  | (4) |
Adjustments |  | (9) |  |  | — |  |  | (9) |
Accrued restructuring action balances as of March 31, 2021 |  | $ | 11 |  |  | $ | — |  |  | $ | 11 |
Remaining activities related to this restructuring were largely completed in the second quarter of 2021. 2019 Restructuring Actions: 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. Additionally, during the fourth quarter of 2019, to realign 3M’s organizational structure and operating model to improve growth and operational efficiency, management approved and committed to undertake certain restructuring actions. These actions impacted approximately 1,500 positions worldwide. The Company recorded fourth quarter 2019 pre-tax charges of $134 million. These restructuring charges were recorded in the income statement as follows:
(Millions) |  | 2019
Cost of sales |  | $ | 72 |
Selling, general and administrative expenses |  | 137 |
Research, development and related expenses |  | 37 |
Total operating income impact |  | 246 |
Other expense (income), net |  | 36 |
Total income before income taxes impact |  | $ | 282 |
The second quarter 2019 actions included a voluntary early retirement incentive initial charge (further discussed in Note 13), the charge for which is included in other expense (income), net above. The operating income impact of these restructuring charges are summarized by business segment as follows:
|  | 2019
(Millions) |  | Employee-Related |  | Asset-Related |  | Total
Safety and Industrial |  | $ | 50 |  |  | $ | — |  |  | $ | 50 |
Transportation and Electronics |  | 31 |  |  | — |  |  | 31 |
Health Care |  | 17 |  |  | — |  |  | 17 |
Consumer |  | 8 |  |  | — |  |  | 8 |
Corporate and Unallocated |  | 100 |  |  | 40 |  |  | 140 |
Total Operating Expense |  | $ | 206 |  |  | $ | 40 |  |  | $ | 246 |
Restructuring actions, including cash and non-cash impacts, follow:
(Millions) |  | Employee-Related |  | Asset-Related |  | Total
Expense incurred in the second quarter and fourth quarter of 2019 |  | $ | 242 |  |  | $ | 40 |  |  | $ | 282 |
Non-cash changes |  | (36) |  |  | (40) |  |  | (76) |
Cash payments |  | (52) |  |  | — |  |  | (52) |
Adjustments |  | (14) |  |  | — |  |  | (14) |
Accrued restructuring action balances as of December 31, 2019 |  | 140 |  |  | — |  |  | 140 |
Cash Payments |  | (51) |  |  | — |  |  | (51) |
Adjustments |  | (59) |  |  | — |  |  | (59) |
Accrued restructuring action balances as of December 31, 2020 |  | 30 |  |  | — |  |  | 30 |
Adjustments in the table above reflect changes in estimates from factors such as additional natural attrition and redeployment as COVID-19 delayed the start of plan execution and update of costs associated with the mix of impacted roles. Remaining activities related to this restructuring were largely completed 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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