3M MMM · USD

Note 20. Business Segments and Geographic Information3M’s businesses are organized, managed and internally grouped into segments based on differences in markets, products, technologies and services. 3M manages its continuing operations in three business segments: Safety and Industrial; Transportation and Electronics; and Consumer. 3M’s three 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. On April 1, 2024, 3M completed the previously announced separation of its Health Care business as a separate public company, Solventum (see Note 2 for additional information). 3M is an integrated enterprise characterized by substantial intersegment cooperation, cost allocations and inventory transfers. Therefore, management does not represent that these segments, if operated independently, would report the operating income information shown.3M discloses business segment operating income as its measure of segment profit, reconciled to both total 3M operating income and income before taxes. Business segment operating income excludes certain expenses and income that are not allocated to business segments (as described below in “Corporate and Other”). Business segment disclosures consider information used by/provided to 3M's chief operating decision maker (CODM). For 3M, the CODM is the chief executive officer. The CODM uses business segment operating income to allocate resources to segments in the planning and forecasting process along with periodic ongoing reviews of results and overall market activity.

Note 3.

Note 17. Commitments and ContingenciesLegal Proceedings: The Company and some of its subsidiaries are involved in numerous claims and lawsuits and regulatory proceedings worldwide. These claims, lawsuits and proceedings relate to matters including, but not limited to, commercial; products liability (involving products that the Company now or formerly manufactured and sold); securities and corporate governance; antitrust and competition; intellectual property; environmental, health and safety; tax; employment and employee benefits; the 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. Unless otherwise stated, the Company is vigorously defending all such litigation and proceedings. From time to time, the Company also receives subpoenas, investigative demands or requests for information from various government agencies in the United States and foreign countries. The Company generally responds in a cooperative, thorough and timely manner. These responses sometimes require time and effort and can result in considerable costs being incurred by the Company. Such requests can also lead to the assertion of claims or the commencement of administrative, civil, or criminal legal proceedings against the Company and others, as well as to settlements. The Company also from time to time becomes aware of certain writs of summons, pre-suit claims, demands or other preliminary or informal assertions of claims or potential future claims that may proceed in the United States or in foreign countries. In response, the Company or its subsidiaries may engage in respect of such matters where it believes it would be appropriate to work towards a negotiated resolution of such matters. Any determination that the Company’s operations or activities are not, or were not, in compliance with applicable laws or regulations could result in the imposition of fines, civil or criminal penalties, and equitable remedies, including disgorgement, suspension or debarment, or injunctive relief. The outcomes of legal proceedings and regulatory matters are often difficult to predict, and they could have a material adverse effect on the Company, its consolidated financial position, results of operations, and cash flows.

Note 12. Long-Term Debt and Short-Term BorrowingsThe following debt tables reflect effective interest rates, which include the impact of interest rate swaps, as of December 31, 2025. All debt outlined in the table below is unsecured. Carrying value includes the impact of debt issuance costs and fair value hedging activity. Long-term debt and short-term borrowings as of December 31 consisted of the following:Long-Term Debt:Principal amountWeighted-average interest rateFinal maturity dateCarrying value(Millions)December 31, 2025December 31, 2024December 31, 2025December 31, 2024December 31, 2025December 31, 2024USD denominated fixed-rate debt$10,500 $10,400 3.76 %3.33 %2026-2050$10,355 $10,317 USD denominated floating-rate debt200 1,014 3.77 6.94 2027-2044199 915 EUR denominated fixed-rate debt€1,751 €1,751 1.73 1.60 2026-20312,048 1,812 Total long-term debt12,602 13,044 Less: current portion of long-term debt1,670 1,919 Long-term debt (excluding current portion)$10,932 $11,125 During 2025, 3M terminated swaps that had converted $800 million principal portion of fixed rate notes to floating-rate debt for a portion of their terms. For December 31, 2024, as those swaps were in place, 3M reflected the carrying value of the $800 million portion as USD denominated floating-rate date in the table above. Short-Term Borrowings and Current Portion of Long-Term Debt:Effective interest rateCarrying value(Millions)December 31, 2025December 31, 2024Current portion of long-term debt2.16 %$1,670 $1,919 Cash Interest Payments: Cash interest payments below include amounts related to both debt and finance lease obligations. They exclude cash paid for early debt extinguishment and imputed interest for amounts due under the PWS Settlement, New Jersey Settlement, and CAE Settlement (discussed in Note 17). (Millions)202520242023Cash interest payments$467 $505$520Future Maturities of Long-term Debt: Maturities of long-term debt in the table below reflect the impact of put provisions associated with certain debt instruments and are net of items such as unamortized debt issue costs such that total maturities equal the carrying value of long-term debt as of December 31, 2025. The maturities of long-term debt for the periods subsequent to December 31, 2025 are as follows (in millions): 20262027202820292030After 2030Total$1,670 $863 $863 $1,793 $1,728 $5,685 $12,602 Credit Facilities: 3M has a $4.

Note 9. Income TaxesIncome (loss) from continuing operations before income taxes consisted of the following: (Millions)202520242023United States$1,870 $2,300 $(13,272)International2,343 2,519 2,001 Total$4,213 $4,819 $(11,271)Provision (benefit) for income taxes consisted of the following:(Millions)202520242023CurrentFederal$(11)$(75)$302 State(1)(6)38 International597 583 494 DeferredFederal307 328 (3,084)State21 1 (495)International90 (27)(122)Total$1,003 $804 $(2,867)Cash income tax payments, net of refunds, consisted of the following:(Millions)202520242023Federal$211 State28International561China134India44Korea44Other international339Total $800 $852 $1,384 The 2017 Tax Cuts and Jobs Act (TCJA) involved a transition tax that is payable over eight years beginning in 2018. As of December 31, 2024, 3M reflected $211 million payable within one year associated with the transition tax. The Company made the final payment in 2025.A reconciliation of the U.S. federal statutory income tax rate to 3M's worldwide effective income tax rate is provided below:2025(Millions)AmountPercentU.S. federal statutory tax rate$885 21.0 %State and local income taxes, net of federal income tax effect(a) 26 0.6 Foreign tax effects212 5.0 Effect of cross-border tax lawsGlobal intangible low-taxed income (net of foreign tax credits)100 2.4 Other(71)(1.7)Tax credits(44)(1.0)Changes in valuation allowances(87)(2.1)Nontaxable or nondeductible items32 0.8 Changes in unrecognized tax benefits(50)(1.2)Effective worldwide tax rate$1,003 23.8 %(a) State taxes in California, Florida, Iowa, Massachusetts, New York, Virginia and Wisconsin made up the majority (greater than 50 percent) of this category.20242023(b)Statutory U.S. tax rate21.0 %21.0 %State income taxes - net of federal benefit0.6 3.2 International income taxes - net (c)2.1 0.6 Global intangible low taxed income (GILTI)0.6 (0.3)Foreign derived intangible income (FDII)(0.3)0.6 U.S. research and development credit(0.7)0.4 Reserves for tax contingencies0.6 (0.4)Employee share-based payments0.4 — Change in valuation allowance on Solventum ownership(7.7)— All other - net0.1 0.3 Effective worldwide tax rate16.7 %25.4 %(b) A positive rate reconciliation percent for the year ended 2023 is a tax benefit on a pretax loss.(c) International income taxes include tax expense associated with international earnings no longer considered permanently reinvested.

Note 19. Stock-Based CompensationAt the May 2021 Annual Meeting, the shareholders approved the Amended and Restated 3M Company 2016 Long-Term Incentive Plan (LTIP), which included an increase of 27 million in the number of shares available for issuance. Awards may be issued in the form of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock awards, and performance units and performance shares. As of December 31, 2025, the remaining shares available for grant under the LTIP are 21 million and there were approximately 6,400 participants with outstanding options, restricted stock, or restricted stock units.The Company’s annual stock option and restricted stock unit grant is typically made in February to provide a strong and immediate link between the performance of individuals during the preceding year and the size of their annual stock compensation grants. The grant to eligible employees uses the closing stock price on the grant date. Accounting rules require recognition of expense under a non-substantive vesting period approach, requiring compensation expense recognition when an employee is eligible to retire. Employees are considered eligible to retire at age 55 and after having completed ten years of service. This retiree-eligible population represents 31 percent of the annual grant stock-based compensation expense; therefore, higher stock-based compensation expense is typically recognized in the first quarter. However, due to the spin-off of Solventum (see Note 2), the 2024 annual grant was made in May, after the April 1, 2024 separation.In addition to the annual grants, the Company makes other minor grants of stock options, restricted stock units and other stock-based grants. The Company issues cash settled restricted stock units and stock appreciation rights in certain countries. The cash settled grants do not result in the issuance of common stock and are considered immaterial by the Company, and not included in the tables below. In connection with the Solventum separation on April 1, 2024 (see Note 2), all outstanding stock-based compensation awards associated with Solventum employees converted into Solventum awards, became Solventum’s responsibility and were cancelled from 3M plans.

Note 18. Leases3M's lease arrangements include both operating and finance leases. Amounts associated with finance leases (such as right-of-use assets, liabilities, costs, cash flow information, and maturities) were not material to the consolidated financial statements. Finance lease right-of-use assets are included in property, plant, and equipment, net, and finance lease liabilities are included in other current liabilities and other liabilities on the consolidated balance sheets.The following table summarizes the components of operating lease cost:(Millions)202520242023Operating lease cost$203 $210 $259 Variable lease cost105 114 103 Total operating lease cost$308 $324 $362 Short-term lease cost and income related to sub-lease activity is immaterial for the Company.Supplemental balance sheet, lease term and discount rate information related to operating leases is as follows:(Millions unless noted)Location on face of balance sheetDecember 31, 2025December 31, 2024Right of use assetsOther assets$516 $565 Current liabilityOther current liabilities167 163 Noncurrent liabilityOther liabilities363 405 Weighted average remaining lease term (in years)4.95.3Weighted average discount rate3.5 %3.5 %As previously noted, the consolidated statements of cash flows include the results of continuing and discontinued operations. Supplemental cash flow information related to operating lease is as follows:(Millions)202520242023Cash paid for amounts included in the measurement of lease liabilities$200 $212 $260 Right of use assets obtained in exchange for operating lease liabilities144 196 262 Sale leased-back activity for the periods presented was not material. Maturities of operating leases as of December 31, 2025 are as follows:(Millions)2026$181 2027125 202883 202953 203039 After 203082 Total expected lease payments563 Less: Amounts representing interest(33)Present value of future minimum lease payments530 Less: Current obligations167 Long-term obligations$363 As of December 31, 2025, the Company has an immaterial amount of additional operating lease commitments that have not yet commenced. These commitments pertain to 3M’s right of use of certain buildings.

Under the oversight of the audit committee of the Company’s board of directors, and as directed by the Company’s Chief Executive Officer, the CIDO and CISO are primarily responsible for the assessment and management of material cybersecurity risks. The CIDO has more than 20 years of experience with global technology organizations across multiple industries. The CISO has over 25 years of experience in information security, risk management, and compliance, has served as the chief information security officer at other organizations and, among other things, is a certified information systems security professional. The CIDO and CISO are also supported by a Cybersecurity & Privacy Executive Oversight Committee, which is comprised of certain members of senior management and provides cross-functional support for cybersecurity risk management and facilitates the response to any cybersecurity incidents.The Company’s CISO oversees the Company’s cybersecurity incident response plan and related processes that are designed to assess and manage material risks from cybersecurity threats. The Company’s CISO also coordinates with the Company’s legal counsel and third parties, such as consultants and legal advisors, to assess and manage material risks from cybersecurity threats. The Company’s CISO is informed about and monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents pursuant to criteria set forth in the Company’s incident response plan and related processes. The Company’s Disclosure Committee, with the assistance of its Cybersecurity Subcommittee, is responsible for overseeing the establishment and effectiveness of controls and other procedures, including controls and procedures related to the public disclosure of material cybersecurity matters. The Company’s Disclosure Committee is comprised of, among others, the Company’s Corporate Controller and Chief Accounting Officer (“CAO”), Treasurer, Chief Legal Affairs Officer (“CLAO”), Assistant Corporate Secretary, General Auditor, and most senior members of the investor relations, external reporting, financial planning and analysis, and tax functions. The Cybersecurity Subcommittee of the Company’s Disclosure Committee is comprised of, among others, the Company’s CAO, Treasurer, CLAO, Assistant Corporate Secretary, and General Auditor, as well as the CIDO and CISO and Chief Privacy Officer.