3M(MMM) - 2024 Q4 - Annual Report

markdown [Part I - Business and Risk Factors](index=5&type=section&id=Part%20I) [Business Overview](index=5&type=section&id=Item%201.%20Business) 3M is a diversified technology company operating globally across three segments, notably completing the Solventum spin-off on April 1, 2024 - 3M operates as a diversified technology company with a global presence in three core business segments: Safety and Industrial, Transportation and Electronics, and Consumer. On April 1, 2024, the company completed the separation of its Health Care business, now known as Solventum[18](index=18&type=chunk) Business Segments Overview | Business Segment | Key Divisions/Products | Representative Market Trends | | :--- | :--- | :--- | | **Safety and Industrial** | Abrasives, industrial adhesives & tapes, personal safety solutions, electrical products, roofing granules. | Personal safety, grid modernization, robotics and automation. | | **Transportation and Electronics** | Advanced materials, automotive & aerospace solutions, display materials, electronics materials. | Automotive electrification, data center solutions, semiconductor manufacturing. | | **Consumer** | Home improvement (Command™), home care (Scotch-Brite™), stationery (Post-it®, Scotch®), consumer health care (Nexcare™). | Home improvement, home cleaning, office supplies. | - As of December 31, 2024, 3M employed approximately **61,500 people**, with about **22,500** in the United States and **39,000** internationally[21](index=21&type=chunk) - In 2024, the company expended approximately **$170 million** on capital projects for environmental purposes and anticipates spending approximately **$340 million** in aggregate for 2025 and 2026[32](index=32&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from global economic conditions, major litigation liabilities (PFAS, CAE), and the Solventum spin-off - The company faces significant liabilities related to PFAS, including a class-action settlement (PWS Settlement) with public water suppliers in the U.S. for **$10.5 billion to $12.5 billion**, payable from 2024 through 2036[38](index=38&type=chunk)[52](index=52&type=chunk) - 3M announced in December 2022 its plan to exit all PFAS manufacturing and discontinue the use of PFAS across its product portfolio by the end of 2025, which involves significant operational, financial, and litigation risks[47](index=47&type=chunk)[48](index=48&type=chunk) - The company entered into a settlement (CAE Settlement) to resolve litigation involving Combat Arms Earplugs, agreeing to contribute a total of **$6.0 billion** between 2023 and 2029. As of the final registration date, over **99%** of claimants are participating[73](index=73&type=chunk) - Risks associated with the April 1, 2024 spin-off of the Health Care business (Solventum) include the possibility that expected benefits will not be realized, costs or dis-synergies will exceed anticipated amounts, and potential negative impacts on business relationships[74](index=74&type=chunk) - The company's results are impacted by global economic conditions, with approximately **56%** of 2024 revenues derived from outside the United States, exposing it to risks from inflation, recession, trade restrictions, and foreign currency fluctuations[40](index=40&type=chunk)[43](index=43&type=chunk) [Cybersecurity](index=18&type=section&id=Item%201C.%20Cybersecurity) 3M manages cybersecurity risks through established processes overseen by the Audit Committee, with no material incidents reported - The Audit Committee of the Board of Directors oversees the company's management of material risks from cybersecurity threats, receiving reports from the CIDO and/or CISO at least quarterly[81](index=81&type=chunk) - The CIDO and CISO are primarily responsible for the assessment and management of material cybersecurity risks, supported by a Cybersecurity & Privacy Executive Oversight Committee[82](index=82&type=chunk) - As of the date of this report, the company is not aware of any cybersecurity incidents that have materially affected or are reasonably likely to materially affect the company's business strategy, results of operations, or financial condition[86](index=86&type=chunk) [Part II - Financial Information](index=19&type=section&id=Part%20II) [Stockholder Matters and Equity Purchases](index=19&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) 3M managed stockholder matters in 2024 through dividend declarations and significant share repurchases - Cash dividends declared and paid totaled **$1.51 per share** for Q1 2024, and **$0.70 per share** for each of Q2, Q3, and Q4 2024. This compares to **$1.50 per share** for each quarter in 2023[91](index=91&type=chunk) - In February 2025, the Board authorized a new share repurchase program for up to **$7.5 billion** of common stock, with no pre-established end date, replacing the February 2018 program[92](index=92&type=chunk) 2024 Issuer Purchases of Equity Securities | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Q1 2024 | — | $ — | | Q2 2024 | 4,170,490 | $ 95.90 | | Q3 2024 | 5,187,904 | $ 129.39 | | Q4 2024 | 5,315,041 | $ 131.90 | | **Total 2024** | **14,673,435** | **$ 120.78** | [Management's Discussion and Analysis (MD&A)](index=20&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) 3M's 2024 financial performance was shaped by the Solventum spin-off, major litigation settlements, and restructuring efforts [Financial Statements and Notes](index=45&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The audited financial statements provide a detailed view of 3M's financial position and performance, with key notes on significant events