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Significant Accounting Policies | 9 Months Ended
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Sep. 30, 2022
Accounting Policies [Abstract] |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The interim consolidated financial statements are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair statement of the Company’s consolidated financial position, results of operations and cash flows for the periods presented. These adjustments consist of normal, recurring items. The results of operations for any interim period are not necessarily indicative of results for the full year. The interim consolidated financial statements and notes are presented as permitted by the requirements for Quarterly Reports on Form 10-Q. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes included in its Current Report on Form 8-K dated April 26, 2022 (which updated 3M's 2021 Annual Report on Form 10-K). Effective in the first quarter of 2022, 3M made changes in the measure of segment operating performance used by 3M’s chief operating decision maker—impacting 3M’s disclosed measure of segment profit/loss (business segment operating income). See additional information in Note 16. 3M's disclosed disaggregated revenue was also updated as a result of the changes in segment reporting. See additional information in Note 2. Information provided herein reflects the impact of these changes for all periods presented. Consolidation and foreign currency translation 3M deconsolidated the Aearo Entities in the third quarter of 2022. See additional information in Note 14. Local currencies generally are considered the functional currencies outside the United States. Exceptions include 3M’s subsidiaries in Argentina and, beginning in the second quarter of 2022, in Turkey, the economy of which also became highly inflationary. The operating income and balances of underlying net monetary assets denominated in Turkish lira are not material to 3M. The financial statements of these subsidiaries are remeasured as if their functional currency is that of their parent. Assets and liabilities for operations in local-currency environments are translated at month-end exchange rates of the period reported. Income and expense items are translated at average monthly currency exchange rates in effect during the period. Cumulative translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in shareholders’ equity. Earnings Per Share The difference in the weighted average 3M shares outstanding for calculating basic and diluted earnings per share attributable to 3M common shareholders is a result of the dilution associated with the Company’s stock-based compensation plans. Certain options outstanding under these stock-based compensation plans were not included in the computation of diluted earnings per share attributable to 3M common shareholders because they would have had an anti-dilutive effect of 31.7 million and 28.9 million average options for the three and nine months ended September 30, 2022, respectively, and 7.9 million and 7.7 million average options for the three and nine months ended September 30, 2021, respectively. The computations for basic and diluted earnings per share follow: Earnings Per Share Computations
|  | Three months ended September 30, |  | Nine months ended September 30,
(Amounts in millions, except per share amounts) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Numerator: |  |  |  |  |  |  |  |
Net income attributable to 3M |  | $ | 3,859 |  |  | $ | 1,434 |  |  | $ | 5,236 |  |  | $ | 4,582 |
Denominator: |  |  |  |  |  |  |  |
Denominator for weighted average 3M common shares outstanding – basic |  | 568.8 |  |  | 579.6 |  |  | 570.7 |  |  | 580.3 |
Dilution associated with the Company’s stock-based compensation plans |  | 1.2 |  |  | 6.7 |  |  | 1.9 |  |  | 6.8 |
Denominator for weighted average 3M common shares outstanding – diluted |  | 570.0 |  |  | 586.3 |  |  | 572.6 |  |  | 587.1 |
Earnings per share attributable to 3M common shareholders – basic |  | $ | 6.79 |  |  | $ | 2.47 |  |  | $ | 9.18 |  |  | $ | 7.90 |
Earnings per share attributable to 3M common shareholders – diluted |  | $ | 6.77 |  |  | $ | 2.45 |  |  | $ | 9.15 |  |  | $ | 7.81 |
New Accounting Pronouncements Refer to Note 1 to the Consolidated Financial Statements in 3M’s Current Report on Form 8-K dated April 26, 2022 (which updated 3M's 2021 Annual Report on Form 10-K) for a discussion of applicable standards issued and not yet adopted by 3M. Relevant New Standards Issued Subsequent to Most Recent Annual Report In September 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-04, Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The ASU requires a buyer in a supplier finance program to disclose information about the program’s nature, activity during the period, changes from period to period, and potential magnitude. For 3M, this standard is effective beginning after January 1, 2023. As this ASU relates to disclosures only, there will be no impact to 3M’s consolidated results of operations and financial condition.

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- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=126899994&loc=d3e18726-107790 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI https://asc.fasb.org/topic&trid=2122369 + Details
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