What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-02-05 compared with 2024-02-07 · 102 added, 102 removed, 155 unchanged (57% of the section changed)

12 unchanged sentences

and Consumer.

In July 2022, 3M announced its intention to spin off the Health Care business as a separate public company (see Note 3 for additional information).

On April 1, 2024, 3M completed the previously announced separation of its Health Care business (see Note 2 for additional information).

3M is among the leading manufacturers of products for many of the markets it serves.

1 unchanged sentence

Business Segments :

3M manages its operations in four business segments.

The reportable segments are Safety and Industrial, Transportation and Electronics, Health Care, and Consumer.

3M manages its continuing operations in three business segments.

The reportable segments are Safety and Industrial, Transportation and Electronics, and Consumer.

3M’s 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 intention to spin off the Health Care business as a separate public company (see Note 3 for additional information).

On April 1, 2024, 3M completed the previously announced separation of its Health Care business (see Note 2 for additional information).

Refer to segment descriptions summarized below (Financial information and other disclosures relating to 3M’s business segments and operations in major geographic areas are provided in the Notes to Consolidated Financial Statements):

Business Segment Safety and Industrial Transportation and Electronics Health Care Consumer

Business Segment Safety and Industrial Transportation and Electronics Consumer

Underlying divisions/businesses

1 unchanged sentence

• Automotive aftermarket

• Closure and masking systems

• Electrical markets

• Industrial adhesives and tapes

• Industrial specialties

• Personal safety

2 unchanged sentences

• Automotive and aerospace

• Commercial solutions

• Commercial branding and transportation

• Display materials and systems

• Electronics materials solutions

• Transportation safety

• Health information systems

• Medical solutions

• Separation and purification sciences

• Food safety (divested in 2022)

• Construction and home improvement markets

• Home, health and auto care

• Stationery and office

• Consumer safety & well-being

• Home and auto care

• Home improvement

• Packaging and expression

Representative revenue-generating activities, products or services • Industrial abrasives and finishing for metalworking applications

• Autobody repair solutions

• Closure systems for personal hygiene products, masking, and packaging materials

• Industrial specialty products such as personal hygiene products, masking, and packaging materials

• Electrical products and materials for construction and maintenance, power distribution and electrical original equipment manufacturers (OEMs)

5 unchanged sentences

• Premium large format graphic films for advertising and fleet signage

• Reflective signage for highway, and vehicle safety

• Light management films and electronics assembly solutions

2 unchanged sentences

• Solutions for data centers

• Reflective 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

• Cleaning products for the home

• Retail abrasives, paint accessories, car care DIY products, picture hanging and consumer air quality solutions

• Stationery products

Some seasonality impacts this business segment related to back-to-school, generally in the third quarter of each year

• Consumer air quality products

• Picture hanging accessories

• Retail abrasives, paint accessories and safety products

• Stationery and office products

• Automotive appearance products

• Consumer bandages, tapes, braces and supports

Some seasonality impacts this business segment, for example back-to-school and holiday

Example brands/offerings • 3M™ Cubitron™ II abrasives

12 unchanged sentences

• Thinsulate™ Acoustic Insulation products and automotive components

• 3M™ Novec™ Engineered Fluids

• 3M™ Scotchlite™ graphic films, 3M™ Scotchcal™ and 3M™ Controltac™ Commercial graphics

• 3M™ Diamond Grade™ DG3 reflective sheeting for transportation safety

• 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™ 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-Brite™ cleaning supplies, sponges, brushes, and scouring pads;

Scotchgard™ products

• Scotch® tapes and other products, Filtrete™ filters and Command™ adhesive products

• Post-it® products

• Command™ adhesive hooks

• Filtrete™ HVAC air filters

• Scotch-Brite™ cleaning sponges

• Meguiar’s™ car wash

• Scotch® tape

• Post-it® stick notes

• Nexcare™ bandages

• Scotchgard™ spray

Representative market trends or opportunities • Personal safety

7 unchanged sentences

• Graphic and architectural films

• Healthcare IT

• Biopharma filtration

• Home improvement

• Consumer safety & well-being

• Package protection & shipping

• Appearance auto care

• Home cleaning

• Office supplies

• Automotive appearance

• Consumer health care

Distribution :

3M products are sold through numerous distribution channels, including 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.

3M products are sold through numerous distribution channels, including directly to users and rough 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 products — a confidence developed through long association with skilled marketing and sales representatives — has contributed significantly to 3M’s position in the marketplace and to its growth.

4 unchanged sentences

Health and Safety;

Diversity, Equity and Inclusion;

and Compensation and Benefits.

8 unchanged sentences

The Company provides leadership development experiences through job-based or project-based assignments, assessment and coaching, and targeted skill-development where leaders are given the opportunity to learn, apply, and share their skills.

3M also has prioritized learning journeys for managers and supervisors and provides opportunities for all employees to learn, in addition to regular coaching and support from their supervisor.

3M also provides opportunities for all employees to learn, in addition to regular coaching and support from their supervisor.

With the Company’s 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 Inclusion:

A diverse, global workforce and inclusive culture that provides fair and equitable opportunities helps 3M remain competitive, advance its innovation culture, and serve customers.

3M has gender, race/ethnicities pay parity in all geographies, and processes in place to ensure this is maintained.

Additionally, 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 increase the Company’s 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 to address racial opportunity gaps through workforce development initiatives in the communities in which its employees live and 3M business operates.

The Company is on pace, having delivered over $39 million through 2023.

3M believes that bringing together people from diverse perspectives, backgrounds, and identities sparks even greater innovation, and helps 3M serve its customers.

3M maintains gender pay parity globally and is committed to continuing these efforts.

Additionally, 3M focuses on attracting top talent from a variety of backgrounds and geographies and providing equal opportunities for advancement.

3M supports these values with an internal CEO Inclusion Council, a forum led by senior management to advance inclusion.

Since 2020, the Company has invested $50 million to address opportunity gaps through workforce development initiatives in the communities in which its employees live and 3M business operates.

Compensation and Benefits :

3M has a trust-based approach to work that empowers employees to work where and when they can best achieve their goals, which supports 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, 3M’s total compensation for employees includes a variety of components that support sustainable employment and the ability to build a strong financial future, including competitive market-based pay and comprehensive benefits.

3M invests in a professional and flexible work environment that promotes innovation, well-being, and rewards performance.

3M’s total compensation for employees includes a variety of components that support sustainable employment and the ability 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 Company’s goals with both short-term cash incentives and long-term equity-based incentives.

7 unchanged sentences

Raw Materials :

In 2023, global supply chains moved towards greater balance, with disruptions driven from more isolated factors than in the prior year.

Overall, 3M experienced year-over-year market inflation in 2023 driven by the carryover of 2022 impacts, and effects of a historically strong labor market.

Market price risks were partially mitigated via negotiated supply contracts.

In 2024, global supply chains stabilized, with disruptions driven from more isolated factors.

Overall, on a continuing operations basis, 3M experienced year-over-year market inflation in 2024 driven by key feedstocks and labor.

Market price risks were partially mitigated via negotiated supply contracts and leveraging scale across supply base.

Patents, Trademarks and Licenses :

10 unchanged sentences

and internationally, including, among others, those related to product liability;

securities and corporate governance;

antitrust and competition;

intellectual property;

environmental, health, and safety;

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 program-related laws and regulations, such as the False Claims Act, anti-kickback laws and the Sunshine Act.

Foreign Corrupt Practices Act (FCPA) and other anti-bribery and anti-corruption laws;

international import and export requirements and trade sanctions compliance;

laws and regulations that apply to industries served by the Company, including the False Claims Act, anti-kickback laws, and the Sunshine Act;

and other matters.

3M’s manufacturing operations are affected by national, state and local environmental laws and regulations around the world.

5 unchanged sentences

Environmental expenditures for capital projects that contribute to current or future operations generally are capitalized and depreciated over their estimated useful lives.

In 2023, 3M expended approximately $316 million on capital projects for environmental purposes as defined below.

In 2024, 3M expended approximately $170 million (excluding activity related to the former Solventum health care business) on capital projects for environmental purposes as defined below.

Capital projects for environmental purposes include waste reduction and pollution control programs such as water usage reduction and water quality improvement equipment, scrubbers, containment structures, solvent recovery units and thermal oxidizers.

6 unchanged sentences

Name Age Present Position Year Elected to Present Position Other Positions Held during 2020 - 2024

Roman 64 Chairman of the Board and Chief Executive Officer 2019 Chief Executive Officer, 2018-2019

Monish Patolawala 54 President, Chief Financial Officer

2023 Executive Vice President, Chief Financial and Transformation Officer, 2021-2023

Senior Vice President and Chief Financial Officer 2020-2021

Chief Financial Officer, Health Care and Vice President, Operational Transformation, General Electric, 2019-2020

Chief Financial Officer, Health Care, General Electric, 2015-2019

Banovetz 56 Executive Vice President, Chief Technology Officer and Environmental Responsibility

2023 Senior Vice President, Chief Technology Officer and Environmental Responsibility, 2021

Roman 65 Executive Chairman of the Board

2024 Chairman of the Board and Chief Executive Officer, 2019-2024

Chief Executive Officer

Executive Chairman of the Board, L3Harris Technologies, 2021-2022

Chairman of the Board and Chief Executive Officer, L3Harris Technologies, 2019-2021

Anurag Maheshwari

51 Executive Vice President, Chief Financial Officer

2024 Executive Vice President, Chief Financial Officer, Otis Worldwide Corporation, 2022-2024

Vice President, Finance, IT and Chief Transformation Officer, Otis Asia Pacific, Otis Worldwide Corporation, 2020-2022

Vice President, Investor Relations, L3 Harris Technologies and Harris Corporation, 2017-2020

Banovetz 57 Executive Vice President, Chief Technology Officer and Environmental Responsibility 2021 Senior Vice President, Chief Technology Officer and Environmental Responsibility, 2021

Senior Vice President, Innovation and Stewardship and Chief Technology Officer, 2020

Senior Vice President of Research and Development and Chief Technology Officer, 2017-2019

49 Group President, Transportation & Electronics Business Group

Vice President, Automotive & Mfg and Retail/Consumer Goods, Amazon Web Services, 2024

Vice President, Automotive & Mfg, Amazon Web Services, 2023-2024

General Manager, Automotive & Mfg, Amazon Web Services, 2023

General Manager, Automotive, Amazon Web Services, 2021-2022

Global Automotive Sales Lead, Amazon Web Services, 2019-2021

Karina Chavez 51

Group President, Consumer

Group President, Consumer Business Group

Senior Vice President and Chief Strategy Officer, 2021-2023

4 unchanged sentences

Board member, The Rumsfeld Foundation, 2016-present

Senior Advisory Committee Member, John F.

Kennedy School at Harvard University, 2007 - present

Zoe Dickson 50 Executive Vice President and Chief Human Resources Officer 2021 Senior Vice President, Talent, Learning and Insights, 2021

Zoe Dickson 51

Executive Vice President and Chief Human Resources Officer 2021 Senior Vice President, Talent, Learning and Insights, 2021

Vice President, Organization Effectiveness and Talent, Human Resources, 2020-2021

Vice President, Organization Effectiveness, Human Resources 2019-2020

Vice President, Global Human Resources Business Operations, Human Resources 2018-2019

Gibbons 62 Group President, Enterprise Operations 2021 Chief Executive Officer, Tirehub, 2018-2021

Group President, Enterprise Supply Chain

2021 Chief Executive Officer, Tirehub, 2018-2021

Chris Goralski

2 unchanged sentences

Vice President, Environmental Stewardship, Research & Development, 2018-2020

Chief Executive Officer, Healthcare

Chairman of the Board and Chief Executive Officer, Zimmer Biomet, 2021-2023

Chief Executive Officer, Zimmer Biotmet, 2017-2021

Mark Murphy 56 Executive Vice President, Chief Information and Digital Officer 2021 Chief Information Officer, Abbott Laboratories, 2020-2021

Global Chief Information Officer and Vice President, BTS, Abbott Laboratories, 2018-2020

Rhodes 61 Executive Vice President, Chief Legal Affairs Officer 2022 Senior Vice President and Deputy General Counsel, 2021

Vice President and Deputy General Counsel, 2019-2021

President and Chief Intellectual Property Counsel, Office of Intellectual Property Counsel and 3M Innovative Properties 2008-2019

Rhodes 62 Executive Vice President, Chief Legal Affairs Officer, and Secretary

2025 Executive Vice President, Chief Legal Affairs Officer, 2022-2024

Senior Vice President and Deputy General Counsel, 2019-2021

Cautionary Note Concerning Factors That May Affect Future Results

5 unchanged sentences

In particular, these include, among others, statements relating to:

• worldwide economic, political, regulatory, international trade, geopolitical, 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 affecting the operations of the Company or our suppliers and customers,

• liabilities and the outcome of contingencies related to certain fluorochemicals known as "PFAS," as well as matters related to the Company's plans to discontinue the use of PFAS,

• risks related to the proposed class-action settlement (“PWS Settlement”) to resolve claims by public water systems in the United States regarding PFAS, including whether court approval of the PWS Settlement will be obtained, whether the number of plaintiffs that opt out of the PWS Settlement will exceed current expectations or will exceed the level that would permit 3M to terminate the PWS Settlement (and whether 3M will elect to terminate the PWS Settlement if this occurs), whether the PWS Settlement is appealed, the timing and amount of payments made under the PWS Settlement, and the impact of the PWS Settlement on other PFAS-related matters,

• the Company’s 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,

• worldwide economic, political, regulatory, international trade, geopolitical, capital markets and other external conditions and other factors beyond the Company's control, including inflation;

military conflicts;

trade restrictions such as sanctions, tariffs, and retaliatory measures;

regulatory requirements, legal actions, or enforcement;

and natural and other disasters or climate change affecting the operations of the Company or its customers and suppliers,

• foreign currency exchange rates and fluctuations 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 including 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 productivity improvements and impact of organizational restructuring activities,

• 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 rates, laws or regulations,

• the proposed spin-off of the Company's Health Care business to establish two separate public companies,

• matters relating to Combat Arms Earplugs (“CAE”), including those related to the August 2023 settlement that is intended to resolve, to the fullest extent possible, all litigation and alleged claims involving the CAE sold or manufactured by the Company's subsidiary Aearo Technologies and certain of its affiliates (“Aearo Entities”) and/or 3M (“CAE Settlement”), including, but not limited to, whether the anticipated full participation by plaintiffs in the CAE Settlement will be achieved, whether the number of plaintiffs who participate in the CAE Settlement will meet the full participation expectations or will fall below the level that would permit 3M to terminate the CAE Settlement (and whether 3M will elect to terminate the CAE Settlement if this occurs), whether there will be a significant number of future claims by plaintiffs that decline to participate in the CAE Settlement, whether the CAE Settlement is appealed or challenged, the filing and outcome of additional litigation, if any, relating to the products that are the subject of the CAE Settlement, or changes in laws or regulations related to the CAE products or CAE settlement, and

• laws and regulations, as well as legal compliance risks (including third-party risks), and legal 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.

• liabilities and the outcome of contingencies related to certain fluorochemicals known as "PFAS," including liabilities related to claims, lawsuits, and government regulatory proceedings concerning various PFAS-related products and chemistries, as well as risks related to the Company's plans to exit PFAS manufacturing and work to discontinue use of PFAS across its product portfolio,

• risks related to the class-action settlement (“PWS Settlement”) to resolve claims by public water suppliers in the United States regarding PFAS,

• legal proceedings, including significant developments that could occur in the legal and regulatory proceedings described in the Company's reports on Form 10-K, 10-Q, and 8-K,

• competitive conditions and customer preferences,

• the timing and market acceptance of new product and service offerings,

• the availability and cost of purchased components, compounds, raw materials and energy due to shortages, increased demand and wages, supply chain interruptions, or natural or other disasters,

• unanticipated problems or delays with the phased implementation of a global enterprise resource planning (ERP) system, or security breaches and other disruptions to the Company's information or operational technology infrastructure,

• the impact of acquisitions, strategic alliances, divestitures, and other strategic events resulting from portfolio management actions and other evolving business strategies,

• operational execution, including the extent to which the Company can realize the benefits of planned productivity improvements, as well as the impact of organizational restructuring activities,

• financial market risks that may affect the Company's funding obligations under defined benefit pension and postretirement plans,

• the Company’s credit ratings and its cost of capital,

• tax-related external conditions, including changes in tax rates, laws, or regulations,

• matters relating to the spin-off of the Company's Health Care business, including the risk that the expected benefits will not be realized;

the risk that the costs or dis-synergies will exceed the anticipated amounts;

potential impacts on the Company's relationships with its customers, suppliers, employees, regulators and other counterparties;

the ability to realize the desired tax treatment;

the risk that any consents or approvals required will not be obtained;

risks under the agreements and obligations entered into in connection with the spin-off, and

• matters relating to Combat Arms Earplugs (“CAE”) and related products, including those related to the August 2023 settlement that is intended to resolve, to the fullest extent possible, all litigation and alleged claims involving the CAE sold or manufactured by the Company's subsidiary Aearo Technologies and certain of its affiliates (“Aearo Entities”) and/or 3M (“CAE Settlement”).

The Company assumes no obligation to update or revise any forward-looking statements.

Changes in such assumptions or factors could produce significantly different results.

Forward-looking statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business