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Restructuring Actions | 9 Months Ended
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Sep. 30, 2023
Restructuring and Related Activities [Abstract] |
Restructuring Actions | NOTE 5. Restructuring Actions 2023 to 2025 Structural Reorganization Actions In the first quarter of 2023, 3M announced it would undertake structural reorganization actions to reduce the size of the corporate center of the Company, simplify supply chain, streamline 3M’s geographic footprint, reduce layers of management, further align business go-to-market models to customers, and reduce manufacturing roles to align with production volumes. During 2023, management approved and committed to undertake associated actions impacting approximately 5,200 positions resulting in a pre-tax charge of $62 million and $326 million in the third quarter and nine months ended September 30, 2023, respectively. Remaining activities related to the restructuring actions approved and committed under this initiative are expected to be largely completed through the end of 2023. 3M expects to commit to further actions under this initiative. This aggregate initiative beginning in the first quarter of 2023 and continuing through 2025 is expected to impact approximately 8,500 positions worldwide with an expected pre-tax charge of $700 million to $900 million over that period. The related restructuring charges for periods presented were recorded in the income (loss) statement as follows:
(Millions) |  | Three months ended September 30, 2023 |  | Nine months ended September 30, 2023
Cost of sales |  | $ | 4 |  | $ | 67 |
Selling, general and administrative expenses |  | 55 |  | 233 |
Research, development and related expenses |  | 3 |  | 26 |
Total operating income impact |  | $ | 62 |  |  | $ | 326 |
The business segment operating income (loss) impact of these restructuring charges is summarized as follows:
|  | Three months ended September 30, 2023 |  | Nine months ended September 30, 2023
(Millions) |  | Employee Related |  | Asset-Related and Other |  | Total |  | Employee Related |  | Asset-Related and Other |  | Total
Safety and Industrial |  | $ | 10 |  | $ | — |  | $ | 10 |  | $ | 64 |  |  | $ | — |  |  | $ | 64 |
Transportation and Electronics |  | 9 |  | — |  | 9 |  | 46 |  |  | — |  |  | 46 |
Health Care |  | 4 |  | — |  | 4 |  | 16 |  |  | — |  |  | 16 |
Consumer |  | 3 |  | — |  | 3 |  | 19 |  |  | — |  |  | 19 |
Corporate and unallocated |  | 4 |  | 32 |  | 36 |  | 129 |  |  | 52 |  |  | 181 |
Total operating expense |  | $ | 30 |  | $ | 32 |  | $ | 62 |  | $ | 274 |  |  | $ | 52 |  |  | $ | 326 |
Restructuring actions, including cash and non-cash impacts, follow:
(Millions) |  | Employee-Related |  | Asset-Related and Other |  | Total
Expense incurred in the first quarter of 2023 |  | $ | 52 |  |  | $ | — |  |  | $ | 52 |
Incremental expense incurred in the second quarter of 2023 |  | 192 |  |  | 20 |  |  | 212 |
Incremental expense incurred in the third quarter of 2023 |  | 30 |  |  | 32 |  |  | 62 |
Non-cash changes |  | — |  |  | (52) |  |  | (52) |
Cash payments |  | (156) |  |  | — |  |  | (156) |
Accrued restructuring action balance as of September 30, 2023 |  | $ | 118 |  |  | $ | — |  |  | $ | 118 |
2023 to 2025 PFAS Exit Actions As further discussed in Note 14, 3M announced in December 2022 that it will exit all PFAS manufacturing by the end of 2025. In the third quarter of 2023, 3M management approved and committed to undertake certain related workforce actions impacting approximately 100 positions resulting in a pre-tax charge of $40 million primarily impacting cost of sales. These charges are reflected within the Transportation and Electronics business segment. There were no material cash payments during the 2023 periods presented related to these actions. The remaining period of activities related to these approved and committed actions aligns with 3M's PFAS exit timeframe. 2022 Restructuring Actions Operational/Marketing Capability Restructuring: As described in Note 5 in 3M's 2022 Annual Report on Form 10-K, in late 2020, 3M announced it would undertake certain actions beginning in the fourth quarter of 2020 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. In the first quarter of 2022, management approved and committed to undertake the remaining actions under this initiative resulting in a pre-tax charge of $18 million. This initiative, beginning in 2020 and ending with committed first quarter 2022 actions, impacted approximately 3,100 positions worldwide with a pre-tax charge of approximately $280 million over that period. Activities related to this restructuring were largely completed in the third quarter of 2022. Divestiture-Related Restructuring: As described in Note 5 in 3M's 2022 Annual Report on Form 10-K, during the third quarter of 2022, following the Food Safety Division split-off transaction and combination with Neogen completed in September 2022 (see Note 3 in 3M's 2022 Annual Report on Form 10-K) management approved and committed to undertake certain restructuring actions addressing corporate functional costs across 3M in relation to the magnitude of amounts previously allocated to the divested business. These actions affected approximately 850 positions worldwide and resulted in a third quarter 2022 pre-tax charge of $41 million, within Corporate and Unallocated. The associated accrued restructuring balance as of December 31, 2022 was $10 million and remaining activities related to this divestiture-related restructuring were largely completed through the first half of 2023.

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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 -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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