Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2019 shares
Document and Entity Information
Entity Registrant Name	3M Company
Trading Symbol	mmm
Entity Central Index Key	0000066740
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding	576,426,706
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Consolidated Statement of Income
Net sales	$ 7,863	$ 8,278
Operating expenses
Cost of sales	4,310	4,236
Selling, general and administrative expenses	1,948	2,573
Research, development and related expenses	477	486
Gain on sale of businesses	(8)	(24)
Total operating expenses	6,727	7,271
Operating income	1,136	1,007
Interest expense and income
Other expense (income), net	48	42
Income before income taxes	1,088	965
Provision for income taxes	195	359
Net income including noncontrolling interest	893	606
Less: Net income attributable to noncontrolling interest	2	4
Net income attributable to 3M	$ 891	$ 602
Weighted average 3M common shares outstanding - basic (in shares)	577.5	596.2
Earnings per share attributable to 3M common shareholders - basic (in dollars per share)	$ 1.54	$ 1.01
Weighted average 3M common shares outstanding - diluted (in shares)	588.5	612.7
Earnings per share attributable to 3M common shareholders - diluted (in dollars per share)	$ 1.51	$ 0.98

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Consolidated Statement of Comprehensive Income
Net income including noncontrolling interest	$ 893	$ 606
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment	77	167
Defined benefit pension and postretirement plans adjustment	84	116
Cash flow hedging instruments	6	(61)
Total other comprehensive income (loss), net of tax	167	222
Comprehensive income (loss) including noncontrolling interest	1,060	828
Comprehensive (income) loss attributable to noncontrolling interest	(2)	(3)
Comprehensive income (loss) attributable to 3M	$ 1,058	$ 825

Consolidated Balance Sheet - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 2,938	$ 2,853
Marketable securities - current	539	380
Accounts receivable - net	5,173	5,020
Inventories
Finished goods	2,221	2,120
Work in process	1,333	1,292
Raw materials and supplies	984	954
Total inventories	4,538	4,366
Prepaids	713	741
Other current assets	473	349
Total current assets	14,374	13,709
Property, plant and equipment	25,124	24,873
Less: Accumulated depreciation	(16,295)	(16,135)
Property, plant and equipment - net	8,829	8,738
Operating lease right of use assets	797
Goodwill	10,611	10,051
Intangible assets - net	3,047	2,657
Other assets	1,482	1,345
Total assets	39,140	36,500
Current liabilities
Short-term borrowings and current portion of long-term debt	790	1,211
Accounts payable	2,309	2,266
Accrued payroll	517	749
Accrued income taxes	183	243
Operating lease liabilities — current	255
Other current liabilities	3,071	2,775
Total current liabilities	7,125	7,244
Long-term debt	15,580	13,411
Pension and postretirement benefits	2,919	2,987
Operating lease liabilities	531
Other liabilities	3,228	3,010
Total liabilities	29,383	26,652
Commitments and contingencies (Note 14)
3M Company shareholders' equity:
Common stock par value, $.01 par value; 944,033,056 shares issued	9	9
Additional paid-in capital	5,755	5,643
Retained earnings	41,159	40,636
Treasury stock, at cost: 367,606,350 shares at March 31, 2019; 367,457,888 shares at December 31, 2018	(29,668)	(29,626)
Accumulated other comprehensive income (loss)	(7,552)	(6,866)
Total 3M Company shareholders' equity	9,703	9,796
Noncontrolling interest	54	52
Total equity	9,757	9,848
Total liabilities and equity	$ 39,140	$ 36,500

Consolidated Balance Sheet (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Consolidated Balance Sheet
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	944,033,056	944,033,056
Treasury stock (in shares)	367,606,350	367,457,888

Consolidated Statement of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash Flows from Operating Activities
Net income including noncontrolling interest	$ 893	$ 606
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities
Depreciation and amortization	375	382
Company pension and postretirement contributions	(47)	(232)
Company pension and postretirement expense	70	102
Stock-based compensation expense	130	159
Gain on sale of businesses	(5)	(24)
Deferred income taxes	(56)	(103)
Changes in assets and liabilities
Accounts receivable	(78)	(260)
Inventories	(178)	(209)
Accounts payable	(3)	(88)
Accrued income taxes (current and long-term)		212
Other - net	(53)	(402)
Net cash provided by (used in) operating activities	1,048	143
Cash Flows from Investing Activities
Purchases of property, plant and equipment (PP&E)	(391)	(304)
Proceeds from sale of PP&E and other assets	1	83
Acquisitions, net of cash acquired	(704)
Purchases of marketable securities and investments	(511)	(517)
Proceeds from maturities and sale of marketable securities and investments	369	990
Proceeds from sale of businesses, net of cash sold	6	40
Other - net	5	(11)
Net cash provided by (used in) investing activities	(1,225)	281
Cash Flows from Financing Activities
Change in short-term debt - net	(428)	1,581
Repayment of debt (maturities greater than 90 days)	(246)	(6)
Proceeds from debt (maturities greater than 90 days)	2,265	6
Purchases of treasury stock	(701)	(937)
Proceeds from issuance of treasury stock pursuant to stock option and benefit plans	215	219
Dividends paid to shareholders	(830)	(810)
Other - net	(17)	(7)
Net cash provided by (used in) financing activities	258	46
Effect of exchange rate changes on cash and cash equivalents	4	(32)
Net increase (decrease) in cash and cash equivalents	85	438
Cash and cash equivalents at beginning of year	2,853	3,053
Cash and cash equivalents at end of period	$ 2,938	$ 3,491

Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

Significant Accounting Policies

Significant Accounting Policies

3M Company and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)

NOTE 1. 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 Annual Report on Form 10-K.

As described in Note 17, effective in the first quarter of 2019, the Company changed its business segment reporting in its continuing effort to improve the alignment of businesses around markets and customers. These changes included the realignment of certain customer account activity in various countries (affecting dual credit reporting), creation of the Closure and Masking Systems and Medical Solutions divisions, and certain other actions that impacted segment reporting. Segment information presented herein reflects the impact of these changes for all periods presented.

Changes to Significant Accounting Policies

The following significant accounting policies have been added or changed since the Company’s 2018 Annual Report on Form 10-K.

Leases: As described in the “New Accounting Pronouncements” section, 3M adopted Accounting Standards Update (ASU) No. 2016-02, Leases, and other related ASUs (collectively, Accounting Standards Codification (ASC) 842) on January 1, 2019, using the modified retrospective method of adoption. This ASU replaced previous lease accounting guidance. The Company’s accounting policy with respect to leases and additional disclosure relative to ASC 842 are included in Note 15.

Income Taxes: As described in the “New Accounting Pronouncements” section, 3M adopted ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The Company’s accounting policy for income taxes has been updated to indicate the uses of the portfolio approach for releasing income tax effects from accumulated other comprehensive loss.

Foreign Currency Translation

Local currencies generally are considered the functional currencies outside the United States. 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 month-end exchange rates of each applicable month. Cumulative translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in shareholders’ equity.

3M has a subsidiary in Venezuela, the financial statements of which are remeasured as if its functional currency were that of its parent because Venezuela’s economic environment is considered highly inflationary. The operating income of this subsidiary was immaterial as a percent of 3M’s consolidated operating income for 2018. The Venezuelan government sets official rates of exchange and conditions precedent to purchase foreign currency at these rates with local currency. The government has also operated various expanded secondary currency exchange mechanisms that have been eliminated and replaced from time to time. Such rates and conditions have been and continue to be subject to change. For the periods presented, the financial statements of 3M’s Venezuelan subsidiary were remeasured utilizing the rate associated with the secondary auction mechanism, Tipo de Cambio Complementario (DICOM), or its predecessor. During the third quarter of 2018, the Venezuelan government effected a conversion of its currency to the Sovereign Bolivar (VES), essentially equating to its previous Venezuelan Bolivar divided by 100,000.

Note 1 in 3M’s 2018 Annual Report on Form 10-K provides additional information the Company considers in determining the exchange rate used relative to its Venezuelan subsidiary as well as factors which could lead to its deconsolidation. The Company continues to monitor these circumstances. Changes in applicable exchange rates or exchange mechanisms may continue in the future. These changes could impact the rate of exchange applicable to remeasure the Company’s net monetary assets (liabilities) denominated in VES. As of March 31, 2019, the Company had a balance of net monetary liabilities denominated in VES of approximately 60 million VES and the DICOM exchange rate was approximately 3,333 VES per U.S. dollar. A need to deconsolidate the Company’s Venezuelan subsidiary’s operations may result from a lack of exchangeability of VES-denominated cash coupled with an acute degradation in the ability to make key operational decisions due to government regulations in Venezuela. Based upon a review of factors as of March 31, 2019, the Company continues to consolidate its Venezuelan subsidiary. 3M also continues to monitor the macro-economic and operating business environment of Venezuela and may make certain resulting strategic decisions. As of March 31, 2019, the balance of accumulated other comprehensive loss associated with this subsidiary was approximately $145 million, and the amount of intercompany receivables due from this subsidiary and its total equity balance were not significant.

3M has subsidiaries in Argentina, the operating income of which was less than one half of one percent of 3M’s consolidated operating income for 2018. Based on various indices, Argentina’s cumulative three-year inflation rate exceeded 100 percent in the second quarter of 2018, thus being considered highly inflationary. As a result, beginning in the third quarter of 2018, the financial statements of the Argentine subsidiaries were remeasured as if their functional currency were that of their parent. As of March 31, 2019, the Company had a balance of net monetary assets denominated in Argentine pesos (ARS) of approximately 190 million ARS and the exchange rate was approximately 43 ARS per U.S. dollar.

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 (5.2 million average options for the three months ended March 31, 2019 and 1.9 million average options for the three months ended March 31, 2018). The computations for basic and diluted earnings per share follow:

Earnings Per Share Computations


	Three months ended
	March 31,
(Amounts in millions, except per share amounts)	2019		2018
Numerator:
Net income attributable to 3M	$	891	$	602

Denominator:
Denominator for weighted average 3M common shares outstanding – basic		577.5		596.2
Dilution associated with the Company’s stock-based compensation plans		11.0		16.5
Denominator for weighted average 3M common shares outstanding – diluted		588.5		612.7

Earnings per share attributable to 3M common shareholders – basic	$	1.54	$	1.01
Earnings per share attributable to 3M common shareholders – diluted	$	1.51	$	0.98

New Accounting Pronouncements

See the Company’s 2018 Annual Report on Form 10-K for a more detailed discussion of the standards in the tables that follow, except for those pronouncements issued subsequent to the most recent Form 10-K filing date for which separate, more detailed discussion is provided below as applicable.


Standards Adopted During the Current Fiscal Year
Standard		Relevant Description	Effective Date for 3M	Impact and Other Matters
ASU No. 2016-02, Leases (as amended by ASU Nos. 2018-10, 2018-11, 2018-20, and 2019-01)		Provides a lessee model that requires entities to recognize assets and liabilities for most leases, but recognize expenses on their income statements in a manner similar to previous accounting. This ASU does not make fundamental changes to previous lessor accounting.	January 1, 2019	See Note 15 for detailed discussion and disclosures. Adopted using the modified retrospective approach. Impact on January 1, 2019 includes a $14 million increase in the balance of retained earnings and recording of additional lease assets and liabilities of $0.8 billion each.
ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities		Shortens the amortization period to the earliest call date for the premium related to certain callable debt securities that have explicit, noncontingent call features and are callable at a fixed price and preset date.	January 1, 2019	3M’s marketable security portfolio includes limited instances of callable debt securities held at a premium. The adoption of this ASU did not have a material impact.
ASU No. 2017-11, (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception		Amends (1) the classification of financial instruments with down-round features as liabilities or equity by revising certain guidance relative to evaluating if they must be accounted for as derivative instruments and (2) the guidance on recognition and measurement of freestanding equity-classified instruments.	January 1, 2019	No financial instruments with down-round features have been issued. The adoption of this ASU did not have a material impact.
ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities, and related ASU No. 2018-16	Amends previous guidance to simplify application of hedge accounting in certain situations and allow companies to better align their hedge accounting with risk management activities. Simplifies related accounting by eliminating requirement to separately measure and report hedge ineffectiveness. Expands an entity’s ability to hedge nonfinancial and financial risk components.		January 1, 2019		See Note 12 for additional details. The adoption of this ASU did not have a material impact.
ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income		Permits entities to reclassify, to retained earnings, the one-time income tax effects stranded in accumulated other comprehensive income arising from the change in the U.S. federal corporate tax rate as a result of the Tax Cuts and Jobs Act of 2017.	January 1, 2019	See Note 8 for additional discussion. Impact on January 1, 2019 includes increases of $0.9 billion in each of retained earnings and accumulated other comprehensive loss. See also the preceding “Changes to Significant Accounting Policies” section.
ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting		Aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees. Clarifies that any share-based payment issued to a customer should be evaluated under ASC 606, Revenue from Contracts with Customers.	January 1, 2019	The adoption of this ASU did not have a material impact as 3M does not issue share-based payments to nonemployees or customers.

Standards Adopted During the Current Fiscal Year (continued)
Standard	Relevant Description	Effective Date for 3M	Impact and Other Matters
ASU No. 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made	Clarifies that a contribution is conditional if the arrangement includes both a barrier for the recipient to be entitled to the assets transferred and a right of return for the assets transferred. Recognition of contribution expense is deferred for conditional arrangements and is immediate for unconditional arrangements.	January 1, 2019	Adopted prospectively with no immediate impact.
ASU No. 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities	Changes how entities evaluate decision-making fees under the variable interest guidance. Indirect interests held through related parties under common control will be considered on a proportionate basis rather than in their entirety.	January 1, 2019	Adoption of this ASU did not have a material impact as 3M does not have significant involvement with entities subject to consolidation considerations impacted by variable interest entity model factors.
ASU No. 2018-18, Clarifying the Interaction between Topic 808 and Topic 606	Clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606, Revenue from Contracts with Customers, when the counterparty is a customer. Precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction.	January 1, 2019	Adoption of this ASU did not have a material impact as 3M has limited collaborative arrangements.
ASU No. 2017-09, Scope of Modification Accounting	Provides that fewer changes to the terms of share-based payment awards will require accounting under the modification model (which generally would have required additional compensation cost).	January 1, 2018	Adopted prospectively with no immediate impact. 3M does not typically make changes to the terms or conditions of its issued share-based payments.


Standards Issued and Not Yet Adopted
Standard	Relevant Description	Effective Date for 3M	Impact and Other Matters
ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (in conjunction with ASU No. 2018-19)	Introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. Amends the current other-than-temporary impairment model for available-for-sale debt securities. For such securities with unrealized losses, entities will still consider if a portion of any impairment is related only to credit losses and therefore recognized as a reduction in income.	January 1, 2020	Required to make a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. 3M is currently assessing this ASU’s impact.
ASU No. 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement	Eliminates, amends, and adds disclosure requirements for fair value measurements, primarily related to Level 3 fair value measurements.	January 1, 2020	As this ASU relates to disclosures only, there will be no impact to 3M’s consolidated results of operations and financial condition.
ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract	Aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service arrangement (i.e. hosting arrangement) with the guidance on capitalizing costs in ASC 350-40, Internal-Use Software.	January 1, 2020	ASU permits either prospective or retrospective transition. As 3M utilizes limited cloud-computing services where significant implementation costs are incurred, the Company does not expect this ASU to have a material impact.

Relevant New Standards Issued Subsequent to Most Recent Annual Report

In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 – Financial Instruments. The new ASU provides narrow-scope amendments to help apply these recent standards. The transition requirements and effective date of this ASU for 3M is January 1, 2020 with early adoption permitted for certain amendments. The Company is currently assessing this standard’s impact on 3M’s consolidated result of operations and financial condition.

Revenue

3 Months Ended

Mar. 31, 2019

Revenue

Revenue

NOTE 2. Revenue

Contract Balances:

Deferred revenue (current portion) as of March 31, 2019 and December 31, 2018 was $619 million and $617 million, respectively, and primarily relates to revenue that is recognized over time for one-year software license contracts, the changes in balance of which are related to the satisfaction or partial satisfaction of these contracts. The balance also contains a deferral for goods that are in-transit at period end for which control transfers to the customer upon delivery. Approximately $370 million of the December 31, 2018 balance was recognized as revenue during the three months ended March 31, 2019, while approximately $280 million of the December 31, 2017 balance was recognized as revenue during the three months ended March 31, 2018. The amount of noncurrent deferred revenue is not significant.

Disaggregated revenue information:

The Company views the following disaggregated disclosures as useful to understanding the composition of revenue recognized during the respective reporting periods:


	Three months ended
	March 31,
Net Sales (Millions)	2019		2018
Abrasives	$	433	$	473
Adhesives and Tapes		807		842
Advanced Materials		312		304
Automotive and Aerospace		500		556
Automotive Aftermarket		390		419
Closure and Masking Systems		278		307
Separation and Purification		214		235
Other Industrial		(5)		(1)
Total Industrial Business Group	$	2,929	$	3,135

Commercial Solutions	$	458	$	485
Personal Safety		939		957
Roofing Granules		92		101
Transportation Safety		217		237
Other Safety and Graphics		(2)		(1)
Total Safety and Graphics Business Group	$	1,704	$	1,779

Drug Delivery	$	92	$	119
Food Safety		83		81
Health Information Systems		260		205
Medical Solutions		764		777
Oral Care		341		354
Other Health Care		—		(1)
Total Health Care Business Group	$	1,540	$	1,535

Electronics	$	863	$	930
Energy		330		420
Other Electronics and Energy		(3)		—
Total Electronics and Energy Business Group	$	1,190	$	1,350

Consumer Health Care	$	98	$	102
Home Care		258		269
Home Improvement		462		458
Stationery and Office		294		303
Other Consumer		11		13
Total Consumer Business Group	$	1,123	$	1,145

Corporate and Unallocated	$	21	$	—
Elimination of Dual Credit		(644)		(666)
Total Company	$	7,863	$	8,278


	Three months ended March 31, 2019
Net Sales (Millions)		United States		Asia Pacific		Europe, Middle East and Africa		Latin America and Canada		Other Unallocated		Worldwide
Industrial		$	1,082	$	823	$	727	$	297	$	—	$	2,929
Safety and Graphics			635		469		408		191		1		1,704
Health Care			725		305		378		132		—		1,540
Electronics and Energy			203		840		94		53		—		1,190
Consumer			631		266		130		96		—		1,123
Corporate and Unallocated			19		2		—		3		(3)		21
Elimination of Dual Credit			(249)		(227)		(113)		(55)		—		(644)
Total Company		$	3,046	$	2,478	$	1,624	$	717	$	(2)	$	7,863


	Three months ended March 31, 2018
Net Sales (Millions)		United States		Asia Pacific		Europe, Middle East and Africa		Latin America and Canada		Other Unallocated		Worldwide
Industrial		$	1,100	$	937	$	787	$	312	$	(1)	$	3,135
Safety and Graphics			652		493		436		198		—		1,779
Health Care			702		298		394		141		—		1,535
Electronics and Energy			229		910		145		67		(1)		1,350
Consumer			610		286		143		106		—		1,145
Corporate and Unallocated			(1)		—		—		—		1		—
Elimination of Dual Credit			(248)		(248)		(113)		(57)		—		(666)
Total Company		$	3,044	$	2,676	$	1,792	$	767	$	(1)	$	8,278

Acquisitions and Divestitures

3 Months Ended

Mar. 31, 2019

Acquisitions and Divestitures

Acquisitions and Divestitures

NOTE 3. Acquisitions and Divestitures

Acquisitions:

3M makes acquisitions of certain businesses from time to time that are aligned with its strategic intent with respect to, among other factors, growth markets and adjacent product lines or technologies. Goodwill resulting from business combinations is largely attributable to the existing workforce of the acquired businesses and synergies expected to arise after 3M’s acquisition of these businesses.


	2019 Acquisition Activity
			Finite-Lived
			Intangible-Asset
(Millions)			Weighted-Average
Asset (Liability)	M*Modal		Lives (Years)
Accounts receivable	$	77
Other current assets		16
Property, plant, and equipment		9
Purchased finite-lived intangible assets:
Customer related intangible assets		290	15
Other technology-based intangible assets		160	6
Definite-lived tradenames		11	6
Purchased goodwill		580
Other assets		55
Accounts payable and other liabilities		(113)
Interest bearing debt		(251)
Deferred tax asset/(liability)		(130)

Net assets acquired	$	704

Supplemental information:
Cash paid	$	708
Less: Cash acquired		4
Cash paid, net of cash acquired	$	704

Purchased identifiable finite-lived intangible assets related to acquisitions which closed in the three months ended March 31, 2019 totaled $461 million. The associated finite-lived intangible assets acquired will be amortized on a systematic and rational basis (generally straight line) over a weighted-average life of 12 years (lives ranging from 6 to 15 years).

In February 2019, 3M completed the acquisition of the technology business of M*Modal for $0.7 billion of cash, net of cash acquired, and assumption of $0.3 billion of M*Modal’s debt. Based in Pittsburgh, Pennsylvania, M*Modal is a leading healthcare technology provider of cloud-based, conversational artificial intelligence-powered systems that help physicians efficiently capture and improve the patient narrative. The allocation of purchase consideration related to M*Modal is considered preliminary with provisional amounts primarily related to intangible assets, working capital, certain tax-related and contingent liability amounts. 3M expects to finalize the allocation of purchase price within the one-year measurement-period following the acquisition. Net sales and operating loss (inclusive of transaction and integration costs) of this business included in 3M’s consolidated results of operations for the first quarter of 2019 were approximately $50 million and $20 million, respectively. Proforma information related to the acquisition has not been included as the impact on the Company’s consolidated results of operations was not considered material.

There were no acquisitions that closed during the three months ended March 31, 2018.

Divestitures:

3M may divest certain businesses from time to time based upon review of the Company’s portfolio considering, among other items, factors relative to the extent of strategic and technological alignment and optimization of capital deployment, in addition to considering if selling the businesses results in the greatest value creation for the Company and for shareholders.

2019 divestitures:

During the first quarter of 2019, the Company sold certain oral care technology comprising a business and reflected an earnout on a previous divestiture resulting in an aggregate immaterial gain.

2018 divestitures:

During 2018, as described in Note 3 in 3M’s 2018 Annual Report on Form 10-K, the Company divested a number of businesses including: certain personal safety product offerings primarily focused on noise, environmental and heat stress monitoring; a polymer additives compounding business; an abrasives glass products business; and substantially all of its Communication Markets Division.

Operating income and held for sale amounts:

The aggregate operating income of these businesses was approximately $10 million and not material in the first three months of 2018 and 2019, respectively. The approximate amounts of major assets and liabilities associated with disposal groups classified as held-for-sale as of March 31, 2019 and as of December 31, 2018 were not material.

Refer to Note 3 in 3M’s 2018 Annual Report on Form 10-K for more information on 3M’s acquisitions and divestitures.

Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets

Goodwill and Intangible Assets

NOTE 4. Goodwill and Intangible Assets

Goodwill from acquisitions totaled $580 million during the first three months of 2019, none of which was deductible for tax purposes. The amounts in the “Translation and other” row in the following table primarily relate to changes in foreign currency exchange rates. The goodwill balance by business segment as of December 31, 2018 and March 31, 2019, follow:

Goodwill


(Millions)	Industrial		Safety and Graphics		Health Care		Electronics and Energy		Consumer		Total Company
Balance as of December 31, 2018		2,614		4,325		1,654		1,250		208		10,051
Acquisition activity		—		—		580		—		—		580
Translation and other		(28)		(4)		(11)		(7)		30		(20)
Balance as of March 31, 2019	$	2,586	$	4,321	$	2,223	$	1,243	$	238	$	10,611

Accounting standards require that goodwill be tested for impairment annually and between annual tests in certain circumstances such as a change in reporting units or the testing of recoverability of a significant asset group within a reporting unit. At 3M, reporting units correspond to a division.

As described in Note 17, effective in the first quarter of 2019, the Company changed its business segment reporting in its continuing effort to improve the alignment of its businesses around markets and customers. For any product changes that resulted in reporting unit changes, the Company applied the relative fair value method to determine the impact on goodwill of the associated reporting units. During the first quarter of 2019, the Company completed its assessment of any potential goodwill impairment for reporting units impacted by this new structure and determined that no impairment existed.

Acquired Intangible Assets

The carrying amount and accumulated amortization of acquired finite-lived intangible assets, in addition to the balance of non-amortizable intangible assets, as of March 31, 2019, and December 31, 2018, follow:


	March 31,		December 31,
(Millions)	2019		2018
Customer related intangible assets	$	2,577	$	2,291
Patents		539		542
Other technology-based intangible assets		738		576
Definite-lived tradenames		674		664
Other amortizable intangible assets		125		125
Total gross carrying amount	$	4,653	$	4,198

Accumulated amortization — customer related		(1,034)		(998)
Accumulated amortization — patents		(489)		(487)
Accumulated amortization — other technology-based		(350)		(333)
Accumulated amortization — definite-lived tradenames		(284)		(276)
Accumulated amortization — other		(88)		(88)
Total accumulated amortization	$	(2,245)	$	(2,182)

Total finite-lived intangible assets — net	$	2,408	$	2,016

Non-amortizable intangible assets (primarily tradenames)		639		641
Total intangible assets — net	$	3,047	$	2,657

Certain tradenames acquired by 3M are not amortized because they have been in existence for over 55 years, have a history of leading-market share positions, have been and are intended to be continuously renewed, and the associated products of which are expected to generate cash flows for 3M for an indefinite period of time.

Amortization expense for the three months ended March 31, 2019 and 2018 follows:


	Three months ended
	March 31,
(Millions)	2019		2018
Amortization expense	$	69	$	64

Expected amortization expense for acquired amortizable intangible assets recorded as of March 31, 2019:


	Remainder of												After
(Millions)	2019		2020		2021		2022		2023		2024		2024
Amortization expense	$	215	$	276	$	267	$	252	$	222	$	196	$	980

The preceding expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, changes in foreign currency exchange rates, impairment of intangible assets, accelerated amortization of intangible assets and other events. 3M expenses the costs incurred to renew or extend the term of intangible assets.

Restructuring Actions and Exit Activities

3 Months Ended

Mar. 31, 2019

Restructuring Actions and Exit Activities

Restructuring Actions and Exit Activities

NOTE 5. Restructuring Actions and Exit Activities

2018 Restructuring Actions:

During the second quarter and fourth quarter of 2018, management approved and committed to undertake certain restructuring actions related to addressing corporate functional costs following the Communication Markets Division divestiture. These actions affected approximately 1,200 positions worldwide and resulted in a second quarter 2018 pre-tax charge of $105 million and a fourth quarter pre-tax charge of $22 million, net of adjustments for reductions in cost estimates of $10 million, essentially all within Corporate and Unallocated. The restructuring charges were recorded in the income statement as follows:


(Millions)	Second Quarter 2018		Fourth Quarter 2018
Cost of sales	$	12	$	15
Selling, general and administrative expenses		89		16
Research, development and related expenses		4		1
Total	$	105	$	32

Restructuring actions, including cash and non-cash impacts, follow:


(Millions)	Employee-Related		Asset-Related		Total
Expense incurred in the second quarter and fourth quarter of 2018	$	125	$	12	$	137
Non-cash changes		—		(12)		(12)
Cash payments		(24)		—		(24)
Adjustments		(17)		—		(17)
Accrued restructuring action balances as of December 31, 2018	$	84	$	—	$	84
Cash payments		(13)		—		(13)
Adjustments		(1)		—		(1)
Accrued restructuring action balances as of March 31, 2019	$	70	$	—	$	70

Remaining activities related to this restructuring are expected to be largely completed through 2019.

Supplemental Income Statement Information

3 Months Ended

Mar. 31, 2019

Supplemental Income Statement Information

Supplemental Income Statement Information

NOTE 6. Supplemental Income Statement Information

Other expense (income), net consists of the following:


	Three months ended
	March 31,
(Millions)	2019		2018
Interest expense	$	104	$	82
Interest income		(20)		(21)
Pension and postretirement net periodic benefit cost (benefit)		(36)		(19)
Total	$	48	$	42

Pension and postretirement net periodic benefit costs described in the table above include all components of defined benefit plan net periodic benefit costs except service cost, which is reported in various operating expense lines. Refer to Note 11 for additional details on the components of pension and postretirement net periodic benefit costs.

Supplemental Equity and Comprehensive Income Information

3 Months Ended

Mar. 31, 2019

Supplemental Equity and Comprehensive Income Information

Supplemental Equity and Comprehensive Income Information

NOTE 7. Supplemental Equity and Comprehensive Income Information

Cash dividends declared and paid totaled $1.44 and $1.36 per share for the first quarter 2019 and 2018, respectively.

Consolidated Changes in Equity

Three months ended March 31, 2019


			3M Company Shareholders
			Common						Accumulated
			Stock and						Other
			Additional						Comprehensive		Non-
			Paid-in		Retained		Treasury		Income		controlling
(Millions)	Total		Capital		Earnings		Stock		(Loss)		Interest
Balance at December 31, 2018	$	9,848	$	5,652	$	40,636	$	(29,626)	$	(6,866)	$	52

Impact of adoption of ASU No. 2018-02 (See Note 1)		—				853				(853)
Impact of adoption of ASU No. 2016-02 (See Note 1)		14				14
Net income		893				891						2
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		77								77		—
Defined benefit pension and post-retirement plans adjustment		84								84		—
Cash flow hedging instruments		6								6		—
Total other comprehensive income (loss), net of tax		167
Dividends declared		(830)				(830)
Stock-based compensation		112		112
Reacquired stock		(666)						(666)
Issuances pursuant to stock option and benefit plans		219				(405)		624
Balance at March 31, 2019	$	9,757	$	5,764	$	41,159	$	(29,668)	$	(7,552)	$	54

Three months ended March 31, 2018


			3M Company Shareholders
			Common						Accumulated
			Stock and						Other
			Additional						Comprehensive		Non-
			Paid-in		Retained		Treasury		Income		controlling
(Millions)	Total		Capital		Earnings		Stock		(Loss)		Interest
Balance at December 31, 2017	$	11,622	$	5,361	$	39,115	$	(25,887)	$	(7,026)	$	59

Net income		606				602						4
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		167								168		(1)
Defined benefit pension and post-retirement plans adjustment		116								116		—
Cash flow hedging instruments		(61)								(61)		—
Total other comprehensive income (loss), net of tax		222
Dividends declared		(810)				(810)
Stock-based compensation		144		144
Reacquired stock		(972)						(972)
Issuances pursuant to stock option and benefit plans		227				(454)		681
Balance at March 31, 2018	$	11,039	$	5,505	$	38,453	$	(26,178)	$	(6,803)	$	62

Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M by Component

Three months ended March 31, 2019


							Total
			Defined Benefit		Cash Flow		Accumulated
			Pension and		Hedging		Other
	Cumulative		Postretirement		Instruments,		Comprehensive
	Translation		Plans		Unrealized		Income
(Millions)	Adjustment		Adjustment		Gain (Loss)		(Loss)
Balance at December 31, 2018, net of tax:	$	(2,098)	$	(4,832)	$	64	$	(6,866)
Impact of adoption of ASU No. 2018-02 (See Note 1)		(13)		(817)		(23)		(853)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		103		—		13		116
Amounts reclassified out		—		104		(7)		97
Total other comprehensive income (loss), before tax		103		104		6		213
Tax effect		(26)		(20)		—		(46)
Total other comprehensive income (loss), net of tax		77		84		6		167
Balance at March 31, 2019, net of tax:	$	(2,034)	$	(5,565)	$	47	$	(7,552)

Three months ended March 31, 2018


							Total
			Defined Benefit		Cash Flow		Accumulated
			Pension and		Hedging		Other
	Cumulative		Postretirement		Instruments,		Comprehensive
	Translation		Plans		Unrealized		Income
(Millions)	Adjustment		Adjustment		Gain (Loss)		(Loss)
Balance at December 31, 2017, net of tax:	$	(1,638)	$	(5,276)	$	(112)	$	(7,026)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		129		—		(82)		47
Amounts reclassified out		—		151		34		185
Total other comprehensive income (loss), before tax		129		151		(48)		232
Tax effect		39		(35)		(13)		(9)
Total other comprehensive income (loss), net of tax		168		116		(61)		223
Balance at March 31, 2018, net of tax:	$	(1,470)	$	(5,160)	$	(173)	$	(6,803)

Income taxes are not provided for foreign translation relating to permanent investments in international subsidiaries, but tax effects within cumulative translation does include impacts from items such as net investment hedge transactions. Reclassification adjustments are made to avoid double counting in comprehensive income items that are also recorded as part of net income.

Reclassifications out of Accumulated Other Comprehensive Income Attributable to 3M


	Amount Reclassified from
Details about Accumulated Other	Accumulated Other Comprehensive Income
Comprehensive Income Components	Three months ended March 31,				Location on Income
(Millions)	2019		2018		Statement
Gains (losses) associated with defined benefit pension and postretirement plans amortization
Prior service benefit	$	16	$	19	See Note 11
Net actuarial loss		(120)		(170)	See Note 11
Total before tax		(104)		(151)
Tax effect		20		35	Provision for income taxes
Net of tax	$	(84)	$	(116)

Cash flow hedging instruments gains (losses)
Foreign currency forward/option contracts	$	7	$	(34)	Cost of sales
Total before tax		7		(34)
Tax effect		(1)		8	Provision for income taxes
Net of tax	$	6	$	(26)
Total reclassifications for the period, net of tax	$	(78)	$	(142)

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2019
Income Taxes.
Income Taxes	NOTE 8. Income Taxes The IRS has completed its field examination of the Company’s U.S. federal income tax returns for the years 2005 to 2014, and 2016, but the years have not closed as the Company is in the process of resolving open issues. The Company remains under examination by the IRS for its U.S. federal income tax returns for the years 2015, 2017 and 2018. In addition to the U.S. federal examination, there is also audit activity in several U.S. state and foreign jurisdictions. As of March 31, 2019, no taxing authority proposed significant adjustments to the Company’s tax positions for which the Company is not adequately reserved. It is reasonably possible that the amount of unrecognized tax benefits could significantly change within the next 12 months. The Company has ongoing federal, state and international income tax audits in various jurisdictions and evaluates uncertain tax positions that may be challenged by local tax authorities and not fully sustained. These uncertain tax positions are reviewed on an ongoing basis and adjusted in light of facts and circumstances including progression of tax audits, developments in case law and closing of statutes of limitation. At this time, the Company is not able to estimate the range by which these potential events could impact 3M’s unrecognized tax benefits in the next 12 months. The total amounts of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of March 31, 2019 and December 31, 2018 are $679 million and $655 million, respectively. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in tax expense. The Company recognized in the consolidated statement of income on a gross basis approximately $6 million and $9 million of expense for the three months ended March 31, 2019 and March 31, 2018, respectively. At March 31, 2019 and December 31, 2018, accrued interest and penalties in the consolidated balance sheet on a gross basis were $75 million and $69 million, respectively. Included in these interest and penalty amounts are interest and penalties related to tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The provision for income taxes is determined using the asset and liability approach. Under this approach, a valuation allowance is recorded to reduce its deferred tax assets when uncertainty regarding their realizability exists. As of March 31, 2019 and December 31, 2018, the Company had valuation allowances of $84 million and $67 million on its deferred tax assets, respectively. The effective tax rate for the first quarter of 2019 was 17.9 percent, compared to 37.2 percent in the first quarter of 2018, a decrease of 19.3 percentage points. Primary factors that decreased the Company’s effective tax rate included significant events such as measurement period adjustments related to TCJA and significant litigation-related charges, in addition to increased benefit from research and development credits. These decreases were partially offset by the composition of geographic mix of income before taxes and the effects of the international tax provisions from U.S. tax reform, which increased the Company’s effective tax rate. The TCJA was enacted in December 2017. Among other things, the TCJA reduced the U.S. federal corporate tax rate from 35 percent to 21 percent beginning in 2018, required companies to pay a one-time transition tax on previously unremitted earnings of non-U.S. subsidiaries that were previously tax deferred and created new taxes on certain foreign sourced earnings. The SEC staff issued Staff Accounting Bulletin 118, which provided a measurement period of up to one year from the TCJA’s enactment date for companies to complete their accounting under ASC 740. During the first quarter of 2018, 3M recognized a measurement period adjustment resulting in an additional tax expense of $217 million to its provisional accounting. Refer to Note 10 in 3M’s 2018 Annual Report on Form 10-K for more information on the impact of TCJA. The Company adopted ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, as described in Note 1, on January 1, 2019. The purpose of this ASU was to allow a reclassification to retained earnings of one-time income tax effects stranded in accumulated other comprehensive income (AOCI) arising from the change in the U.S. federal corporate tax rate as a result of TCJA. The effect of this adoption resulted in a reclassification between retained earnings and AOCI, which increased retained earnings by approximately $0.9 billion, with an offsetting increase to accumulated other comprehensive loss for the same amount.

Marketable Securities

3 Months Ended

Mar. 31, 2019

Marketable Securities.

Marketable Securities

NOTE 9. Marketable Securities

The Company invests in asset-backed securities, certificates of deposit/time deposits, commercial paper, and other securities. The following is a summary of amounts recorded on the Consolidated Balance Sheet for marketable securities (current and non-current).


(Millions)	March 31, 2019		December 31, 2018
Corporate debt securities	$	16	$	—
Commercial paper		510		366
Certificates of deposit/time deposits		10		10
U.S. municipal securities		3		3
Asset-backed securities		—		1
Current marketable securities	$	539	$	380

U.S. municipal securities	$	46	$	37
Non-current marketable securities	$	46	$	37

Total marketable securities	$	585	$	417

At March 31, 2019 and December 31, 2018, gross unrealized, gross realized, and net realized gains and/or losses (pre-tax) were not material.

The balances at March 31, 2019 for marketable securities by contractual maturity are shown below. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.


(Millions)	March 31, 2019
Due in one year or less	$	539
Due after one year through five years		13
Due after five years through ten years		24
Due after ten years		9
Total marketable securities	$	585

3M does not currently expect risk related to its holding in asset-backed securities to materially impact its financial condition or liquidity.

Long-Term Debt and Short-Term Borrowings

3 Months Ended

Mar. 31, 2019

Long-Term Debt and Short-Term Borrowings

Long-Term Debt and Short-Term Borrowings

NOTE 10. Long-Term Debt and Short-Term Borrowings

In February 2019, 3M issued $450 million aggregate principal amount of 3-year fixed rate medium-term notes due 2022 with a coupon rate of 2.75%, $500 million aggregate principal amount of remaining 5-year fixed rate medium-term notes due 2024 with a coupon rate of 3.25%, $800 million aggregate principal amount of 10-year fixed rate medium-term notes due 2029 with a coupon rate of 3.375%, and $500 million aggregate principal amount of remaining 29.5-year fixed rate medium-term notes due 2048 with a coupon rate of 4.00%. Issuances of the 5-year and 29.5-year notes were pursuant to a reopening of existing securities issued in September 2018.

As of March 31, 2019, the Company had no commercial paper outstanding, compared to $435 million in commercial paper outstanding as of December 31, 2018.

Future 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 the unaccreted debt issue costs such that total maturities equal the carrying value of long-term debt as of March 31, 2019. The maturities of long-term debt for the periods subsequent to March 31, 2019 are as follows (in millions):


Remainder of												After
2019		2020		2021		2022		2023		2024		2024		Total
$	747	$	1,318	$	1,686	$	1,603	$	1,315	$	1,102	$	8,557	$	16,328

Pension and Postretirement Benefit Plans

3 Months Ended

Mar. 31, 2019

Pension and Postretirement Benefit Plans

Pension and Postretirement Benefit Plans

NOTE 11. Pension and Postretirement Benefit Plans

The service cost component of defined benefit net periodic benefit cost is recorded in cost of sales, selling, general and administrative expenses, and research, development and related expenses. The other components of net periodic benefit cost are reflected in other expense (income), net. Components of net periodic benefit cost and other supplemental information for the three months ended March 31, 2019 and 2018 follow:

Benefit Plan Information


	Three months ended March 31,
	Qualified and Non-qualified
	Pension Benefits								Postretirement
	United States				International				Benefits
(Millions)	2019		2018		2019		2018		2019		2018
Net periodic benefit cost (benefit)
Operating expense
Service cost	$	62	$	72	$	33	$	36	$	11	$	13
Non-operating expense
Interest cost	$	155	$	141	$	39	$	40	$	21	$	20
Expected return on plan assets		(260)		(272)		(75)		(78)		(20)		(21)
Amortization of prior service benefit		(6)		(6)		(3)		(3)		(7)		(10)
Amortization of net actuarial loss		91		126		20		29		9		15
Total non-operating expense (benefit)		(20)		(11)		(19)		(12)		3		4
Total net periodic benefit cost (benefit)	$	42	$	61	$	14	$	24	$	14	$	17

For the three months ended March 31, 2019, contributions totaling $46 million were made to the Company’s U.S. and international pension plans and $1 million to its postretirement plans. For total year 2019, the Company expects to contribute approximately $200 million of cash to its global defined benefit pension and postretirement plans. The Company does not have a required minimum cash pension contribution obligation for its U.S. plans in 2019. Future contributions will depend on market conditions, interest rates and other factors. 3M’s annual measurement date for pension and postretirement assets and liabilities is December 31 each year, which is also the date used for the related annual measurement assumptions.

Derivatives

3 Months Ended

Mar. 31, 2019

Derivatives

Derivatives

NOTE 12. Derivatives

The Company uses interest rate swaps, currency swaps, commodity price swaps, and forward and option contracts to manage risks generally associated with foreign exchange rate, interest rate and commodity price fluctuations. The information that follows explains the various types of derivatives and financial instruments used by 3M, how and why 3M uses such instruments, how such instruments are accounted for, and how such instruments impact 3M’s financial position and performance.

3M adopted ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities as of January 1, 2019. The disclosures contained within this note have been updated to reflect the new guidance, except for prior period amounts presented, as the disclosure changes were adopted prospectively. For derivative instruments that are designated in a cash flow or fair value hedging relationship, the impact of this accounting standard was to remove the requirement to test for ineffectiveness. Prior to the adoption of this ASU, any gain or loss related to hedge ineffectiveness was recognized in current earnings. For any net investment hedges entered into on or after January 1, 2019, amounts excluded from the assessment of hedge effectiveness, including the time value of the forward contract at the inception of the hedge, are recognized in earnings using an amortization approach over the life of the hedging instrument on a straight-line basis. Any difference between the change in the fair value of the excluded component and the amount amortized into earnings during the period is recorded in cumulative translation within other comprehensive income.

Additional information with respect to derivatives is included elsewhere as follows:

·

Impact on other comprehensive income of nonderivative hedging and derivative instruments is included in Note 7.

·

Fair value of derivative instruments is included in Note 13.

·

Derivatives and/or hedging instruments associated with the Company’s long-term debt are described in Note 12 in 3M’s 2018 Annual Report on Form 10-K.

Types of Derivatives/Hedging Instruments and Inclusion in Income/Other Comprehensive Income

Cash Flow Hedges:

For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized in current earnings.

Cash Flow Hedging - Foreign Currency Forward and Option Contracts: The Company enters into foreign exchange forward and option contracts to hedge against the effect of exchange rate fluctuations on cash flows denominated in foreign currencies. These transactions are designated as cash flow hedges. The settlement or extension of these derivatives will result in reclassifications (from accumulated other comprehensive income) to earnings in the period during which the hedged transactions affect earnings. 3M may dedesignate these cash flow hedge relationships in advance of the occurrence of the forecasted transaction. The portion of gains or losses on the derivative instrument previously included in accumulated other comprehensive income for dedesignated hedges remains in accumulated other comprehensive income until the forecasted transaction occurs or becomes probable of not occurring. Changes in the value of derivative instruments after dedesignation are recorded in earnings and are included in the Derivatives Not Designated as Hedging Instruments section below. The maximum length of time over which 3M hedges its exposure to the variability in future cash flows of the forecasted transactions is 36 months.

Cash Flow Hedging — Interest Rate Contracts: The Company may use forward starting interest rate contracts to hedge exposure to variability in cash flows from interest payments on forecasted debt issuances. The amortization of gains and losses on forward starting interest rate swaps is included in the tables below as part of the gain/(loss) recognized in income as a result of reclassification from accumulated other comprehensive income. Additional information regarding previously issued but terminated interest rate contracts, which have related balances within accumulated other comprehensive income being amortized over the underlying life of related debt, can be found in Note 14 in 3M’s 2018 Annual Report on Form 10-K.

As of December 31, 2018, the Company had $700 million of notional amount in outstanding forward starting interest rate swaps as hedges against interest rate volatility with forecasted issuances of fixed rate debt. During the first quarter of 2019, the Company entered into additional forward starting interest rate swaps with a notional amount of $200 million. Concurrent with the issuance of the medium-term notes in February 2019, 3M terminated $550 million of these interest rate swaps. The termination resulted in an immaterial net loss within accumulated other comprehensive income that will be amortized over the respective lives of the debt.

The amortization of gains and losses on forward starting interest rate swaps is included in the tables below as part of the gain/(loss) reclassified from accumulated other comprehensive income into income.

As of March 31, 2019, the Company had a balance of $47 million associated with the after-tax net unrealized gain associated with cash flow hedging instruments recorded in accumulated other comprehensive income. This includes a remaining balance of $15 million (after-tax loss) related to the forward starting interest rate swaps, which will be amortized over the respective lives of the notes. Based on exchange rates as of March 31, 2019, 3M expects to reclassify approximately $40 million, $37 million, $22 million of the after-tax net unrealized foreign exchange cash flow hedging gains to earnings over the next 12 months, over the remainder of 2019, in 2020, respectively, in addition to reclassifying approximately $12 million of the after-tax net unrealized foreign exchange cash flow hedging losses to earnings after 2020 (with the impact offset by earnings/losses from underlying hedged items).

The location in the consolidated statements of income and comprehensive income and amounts of gains and losses related to derivative instruments designated as cash flow hedges are provided in the following table. Reclassifications of amounts from accumulated other comprehensive income into income include accumulated gains (losses) on dedesignated hedges at the time earnings are impacted by the forecasted transactions.


	Pretax Gain (Loss)
	Recognized in Other		Pretax Gain (Loss) Reclassified
	Comprehensive		from Accumulated Other
Three months ended March 31, 2019	Income on Derivative		Comprehensive Income into Income
(Millions)	Amount		Location	Amount
Foreign currency forward/option contracts	$	30	Cost of sales	$	7
Interest rate swap contracts		(17)	Interest expense		—
Total	$	13		$	7

Pretax Gain (Loss) Recognized in

Pretax Gain (Loss)

Income on Effective Portion of

Ineffective Portion of Gain

Recognized in Other

Derivative as a Result of

(Loss) on Derivative and

Comprehensive

Reclassification from

Amount Excluded from

Income on Effective

Accumulated Other

Effectiveness Testing

Three months ended March 31, 2018

Portion of Derivative

Comprehensive Income

Recognized in Income

(Millions)

Amount

Location

Amount

Location

Amount

Foreign currency forward/option contracts

$

(79)

Cost of sales

$

(34)

Cost of sales

$

—

Interest rate swap contracts

(3)

Interest expense

—

Interest expense

—

Total

$

(82)

$

(34)

$

—

Fair Value Hedges:

For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivatives as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings.

Fair Value Hedging - Interest Rate Swaps: The Company manages interest expense using a mix of fixed and floating rate debt. To help manage borrowing costs, the Company may enter into interest rate swaps. Under these arrangements, the Company agrees to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. The mark-to-market of these fair value hedges is recorded as gains or losses in interest expense and is offset by the gain or loss of the underlying debt instrument, which also is recorded in interest expense. Additional information regarding designated interest rate swaps can be found in Note 14 in 3M’s 2018 Annual Report on Form 10-K.

Refer to the section below titled Statement of Income Location and Impact of Cash Flow and Fair Value Derivative Instruments for details on the location within the consolidated statements of income for amounts of gains and losses related to derivative instruments designated as fair value hedges and similar information relative to the hedged items for the three months ended March 31, 2019.

The location in the consolidated statements of income and amounts of gains and losses related to derivative instruments designated as fair value hedges and similar information relative to the hedged items are as follows for periods prior to 2019:


	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
Three months ended March 31, 2018	Recognized in Income			Recognized in Income
(Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	(11)	Interest expense	$	11
Total		$	(11)		$	11

The following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges:


					Cumulative Amount of Fair Value Hedging
	Carrying Value of the				Adjustment Included in the Carrying Value
	Hedged Liabilities (in millions)				of the Hedged Liabilities (in millions)
Location on the Consolidated Balance Sheet	March 31, 2019		December 31, 2018		March 31, 2019		December 31, 2018
Short-term borrowings and current portion of long-term debt	$	598	$	596	$	(1)	$	(4)
Long-term debt		1,272		1,276		20		18
Total	$	1,870	$	1,872	$	19	$	14

Net Investment Hedges:

The Company may use non-derivative (foreign currency denominated debt) and derivative (foreign exchange forward contracts) instruments to hedge portions of the Company’s investment in foreign subsidiaries and manage foreign exchange risk. For instruments that are designated and qualify as hedges of net investments in foreign operations and that meet the effectiveness requirements, the net gains or losses attributable to changes in spot exchange rates are recorded in cumulative translation within other comprehensive income. Amounts excluded from the assessment of hedge effectiveness, including the time value of the forward contract at the inception of the hedge, are recognized in earnings using an amortization approach over the life of the hedging instrument on a straight-line basis. Any difference between the change in the fair value of the excluded component and the amount amortized into earnings during the period is recorded in cumulative translation within other comprehensive income. Recognition in earnings of amounts previously recorded in cumulative translation is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. To the extent foreign currency denominated debt is not designated in or is dedesignated from a net investment hedge relationship, changes in value of that portion of foreign currency denominated debt due to exchange rate changes are recorded in earnings through their maturity date.

3M’s use of foreign exchange forward contracts designated in hedges of the Company’s net investment in foreign subsidiaries can vary by time period depending on when foreign currency denominated debt balances designated in such relationships are dedesignated, matured, or are newly issued and designated. Additionally, variation can occur in connection with the extent of the Company’s desired foreign exchange risk coverage.

At March 31, 2019, the total notional amount of foreign exchange forward contracts designated in net investment hedges was approximately 530 million Euros and approximately 248 billion South Korean Won, along with a principal amount of long-term debt instruments designated in net investment hedges totaling 4.1 billion Euros. The maturity dates of these derivative and nonderivative instruments designated in net investment hedges range from 2019 to 2031.

The location in the consolidated statements of income and comprehensive income and amounts of gains and losses related to derivative and nonderivative instruments designated as net investment hedges are as follows. There were no reclassifications of the effective portion of net investment hedges out of accumulated other comprehensive income into income for the periods presented in the table below.




	Pretax Gain (Loss)
	Recognized as
	Cumulative Translation		Amount Excluded
	within Other		from Effectiveness Testing
Three months ended March 31, 2019	Comprehensive Income		Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	92	Cost of sales	$	—
Foreign currency forward contracts		15	Cost of sales		5
Total	$	107		$	5


	Pretax Gain (Loss)
	Recognized as
	Cumulative Translation
	within Other		Ineffective Portion of Gain (Loss) on
	Comprehensive Income		Instrument and Amount Excluded
	on Effective Portion of		from Effectiveness Testing
Three months ended March 31, 2018	Instrument		Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	(128)	Cost of sales	$	(2)
Foreign currency forward contracts		(6)	Cost of sales		(1)
Total	$	(134)		$	(3)

Derivatives Not Designated as Hedging Instruments:

Derivatives not designated as hedging instruments include dedesignated foreign currency forward and option contracts that formerly were designated in cash flow hedging relationships (as referenced in the Cash Flow Hedges section above). In addition, 3M enters into foreign currency forward contracts to offset, in part, the impacts of certain intercompany activities and enters into commodity price swaps to offset, in part, fluctuations in costs associated with the use of certain commodities and precious metals. These derivative instruments are not designated in hedging relationships; therefore, fair value gains and losses on these contracts are recorded in earnings. The Company does not hold or issue derivative financial instruments for trading purposes.

The location in the consolidated statement of income and amounts of gains and losses related to derivative instruments not designated as hedging instruments are as follows:


	Three months ended March 31, 2019
	Gain (Loss) on Derivative Recognized in
	Income
(Millions)	Location	Amount
Foreign currency forward/option contracts	Cost of sales	$	(2)
Foreign currency forward contracts	Interest expense		(8)
Total		$	(10)


	Three months ended March 31, 2018
	Gain (Loss) on Derivative Recognized in
	Income
(Millions)	Location	Amount
Foreign currency forward/option contracts	Cost of sales	$	(3)
Foreign currency forward contracts	Interest expense		23
Total		$	20

Statement of Income Location and Impact of Cash Flow and Fair Value Derivative Instruments

The location in the consolidated statement of income and pre-tax amounts recognized in income related to derivative instruments designated in a cash flow or fair value hedging relationship are as follows:


	Location and Amount of Gain (Loss) Recognized in Income
	Three months ended March 31, 2019
(Millions)	Cost of sales		Other expense (income), net
Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of cash flow or fair value hedges are recorded	$	4,310	$	48

The effects of fair value and cash flow hedging:
Gain or (loss) on cash flow hedging relationships:
Foreign currency forward/option contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	$	7	$	—
Interest rate swap contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income		—		—

Gain or (loss) on fair value hedging relationships:
Interest rate swap contracts:
Hedged items	$	—	$	(5)
Derivatives designated as hedging instruments		—		5

Location and Fair Value Amount of Derivative Instruments

The following tables summarize the fair value of 3M’s derivative instruments, excluding nonderivative instruments used as hedging instruments, and their location in the consolidated balance sheet. Notional amounts below are presented at period end foreign exchange rates, except for certain interest rate swaps, which are presented using the inception date’s foreign exchange rate. Additional information with respect to the fair value of derivative instruments is included in Note 13.


	Gross		Assets			Liabilities
March 31, 2019	Notional			Fair			Fair
(Millions)	Amount		Location	Value Amount		Location	Value Amount
Derivatives designated as
hedging instruments
Foreign currency forward/option contracts	$	2,742	Other current assets	$	88	Other current liabilities	$	11
Foreign currency forward/option contracts		1,100	Other assets		53	Other liabilities		1
Interest rate swap contracts		600	Other current assets		—	Other current liabilities		1
Interest rate swap contracts		1,453	Other assets		19	Other liabilities		31
Total derivatives designated as hedging instruments				$	160		$	44

Derivatives not designated as
hedging instruments
Foreign currency forward/option contracts	$	2,925	Other current assets	$	11	Other current liabilities	$	12
Total derivatives not designated as hedging instruments				$	11		$	12

Total derivative instruments				$	171		$	56


	Gross		Assets			Liabilities
December 31, 2018	Notional			Fair			Fair
(Millions)	Amount		Location	Value Amount		Location	Value Amount
Derivatives designated as
hedging instruments
Foreign currency forward/option contracts	$	2,277	Other current assets	$	74	Other current liabilities	$	12
Foreign currency forward/option contracts		1,099	Other assets		39	Other liabilities		4
Interest rate swap contracts		1,000	Other current assets		—	Other current liabilities		14
Interest rate swap contracts		1,403	Other assets		19	Other liabilities		17
Total derivatives designated as hedging instruments				$	132		$	47

Derivatives not designated as
hedging instruments
Foreign currency forward/option contracts	$	2,484	Other current assets	$	14	Other current liabilities	$	6
Total derivatives not designated as hedging instruments				$	14		$	6

Total derivative instruments				$	146		$	53

Credit Risk and Offsetting of Assets and Liabilities of Derivative Instruments

The Company is exposed to credit loss in the event of nonperformance by counterparties in interest rate swaps, currency swaps, commodity price swaps, and forward and option contracts. However, the Company’s risk is limited to the fair value of the instruments. The Company actively monitors its exposure to credit risk through the use of credit approvals and credit limits, and by selecting major international banks and financial institutions as counterparties. 3M enters into master netting arrangements with counterparties when possible to mitigate credit risk in derivative transactions. A master netting arrangement may allow each counterparty to net settle amounts owed between a 3M entity and the counterparty as a result of multiple, separate derivative transactions. As of March 31, 2019, 3M has International Swaps and Derivatives Association (ISDA) agreements with 17 applicable banks and financial institutions which contain netting provisions. In addition to a master agreement with 3M supported by a primary counterparty’s parent guarantee, 3M also has associated credit support agreements in place with 16 of its primary derivative counterparties which, among other things, provide the circumstances under which either party is required to post eligible collateral (when the market value of transactions covered by these agreements exceeds specified thresholds or if a counterparty’s credit rating has been downgraded to a predetermined rating). The Company does not anticipate nonperformance by any of these counterparties.

3M has elected to present the fair value of derivative assets and liabilities within the Company’s consolidated balance sheet on a gross basis even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. However, the following tables provide information as if the Company had elected to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria in the event of default or termination as stipulated by the terms of netting arrangements with each of the counterparties. For each counterparty, if netted, the Company would offset the asset and liability balances of all derivatives at the end of the reporting period based on the 3M entity that is a party to the transactions. Derivatives not subject to master netting agreements are not eligible for net presentation. As of the applicable dates presented below, no cash collateral had been received or pledged related to these derivative instruments.

Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties


			Gross Amounts not Offset in the
			Consolidated Balance Sheet that are Subject
	Gross Amount of		to Master Netting Agreements
	Derivative Assets		Gross Amount of
	Presented in the		Eligible Offsetting
March 31, 2019	Consolidated		Recognized		Cash Collateral		Net Amount of
(Millions)	Balance Sheet		Derivative Liabilities		Received		Derivative Assets
Derivatives subject to master netting agreements	$	171	$	39	$	—	$	132
Derivatives not subject to master netting agreements		—						—
Total	$	171					$	132


December 31, 2018
(Millions)
Derivatives subject to master netting agreements	$	146	$	38	$	—	$	108
Derivatives not subject to master netting agreements		—						—
Total	$	146					$	108

Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties


			Gross Amounts not Offset in the
			Consolidated Balance Sheet that are Subject
	Gross Amount of		to Master Netting Agreements
	Derivative Liabilities		Gross Amount of
	Presented in the		Eligible Offsetting
March 31, 2019	Consolidated		Recognized		Cash Collateral		Net Amount of
(Millions)	Balance Sheet		Derivative Assets		Pledged		Derivative Liabilities
Derivatives subject to master netting agreements	$	56	$	39	$	—	$	17
Derivatives not subject to master netting agreements		—						—
Total	$	56					$	17


December 31, 2018
(Millions)
Derivatives subject to master netting agreements	$	53	$	38	$	—	$	15
Derivatives not subject to master netting agreements		—						—
Total	$	53					$	15

Currency Effects

3M estimates that year-on-year foreign currency transaction effects, including hedging impacts, increased pre-tax income by approximately $90 million for the three months ended March 31, 2019. These estimates include transaction gains and losses, including derivative instruments designed to reduce foreign currency exchange rate risks.

Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Fair Value Measurements

Fair Value Measurements

NOTE 13. Fair Value Measurements

3M follows ASC 820, Fair Value Measurements and Disclosures, with respect to assets and liabilities that are measured at fair value on a recurring basis and nonrecurring basis. Under the standard, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The standard also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Assets and Liabilities that are Measured at Fair Value on a Recurring Basis:

Refer to Note 15 in 3M’s 2018 Annual Report on Form 10-K for a qualitative discussion of the assets and liabilities that are measured at fair value on a recurring and nonrecurring basis, a description of the valuation methodologies used by 3M, and categorization within the valuation framework of ASC 820.

The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis.


			Fair Value Measurements
Description	Fair Value at		Using Inputs Considered as
(Millions)	March 31, 2019		Level 1		Level 2		Level 3
Assets:
Available-for-sale:
Marketable securities:
Corporate debt securities	$	16	$	—	$	16	$	—
Commercial paper		510		—		510		—
Certificates of deposit/time deposits		10		—		10		—
U.S. municipal securities		49		—		—		49
Derivative instruments — assets:
Foreign currency forward/option contracts		152		—		152		—
Interest rate swap contracts		19		—		19		—

Liabilities:
Derivative instruments — liabilities:
Foreign currency forward/option contracts		24		—		24		—
Interest rate swap contracts		32		—		32		—


			Fair Value Measurements
Description	Fair Value at		Using Inputs Considered as
(Millions)	December 31, 2018		Level 1		Level 2		Level 3
Assets:
Available-for-sale:
Marketable securities:
Commercial paper	$	366	$	—	$	366	$	—
Certificates of deposit/time deposits		10		—		10		—
Asset-backed securities		1		—		1		—
U.S. municipal securities		40		—		—		40
Derivative instruments — assets:
Foreign currency forward/option contracts		127		—		127		—
Interest rate swap contracts		19		—		19		—

Liabilities:
Derivative instruments — liabilities:
Foreign currency forward/option contracts		22		—		22		—
Interest rate swap contracts		31		—		31		—

The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis in the table above that used significant unobservable inputs (level 3).


	Three months ended
Marketable securities — certain U.S. municipal securities only	March 31,
(Millions)	2019		2018
Beginning balance	$	40	$	30
Total gains or losses:
Included in earnings		—		—
Included in other comprehensive income		—		—
Purchases and issuances		9		—
Sales and settlements		—		—
Transfers in and/or out of level 3		—		—
Ending balance	$	49	$	30
Change in unrealized gains or losses for the period included in earnings for securities held at the end of the reporting period		—		—

In addition, the plan assets of 3M’s pension and postretirement benefit plans are measured at fair value on a recurring basis (at least annually). Refer to Note 13 in 3M’s 2018 Annual Report on Form 10-K.

Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis:

Disclosures are required for certain assets and liabilities that are measured at fair value, but are recognized and disclosed at fair value on a nonrecurring basis in periods subsequent to initial recognition. For 3M, such measurements of fair value relate primarily to long-lived asset impairments and adjustment in carrying value of equity securities for which the measurement alternative of cost less impairment plus or minus observable price changes is used. There were no material long-lived asset impairments or adjustments to equity securities using the measurement alternative for the three months ended March 31, 2019 and 2018.

Fair Value of Financial Instruments:

The Company’s financial instruments include cash and cash equivalents, marketable securities, accounts receivable, certain investments, accounts payable, borrowings, and derivative contracts. The fair values of cash equivalents, accounts receivable, accounts payable, and short-term borrowings and current portion of long-term debt approximated carrying values because of the short-term nature of these instruments. Available-for-sale marketable securities, in addition to certain derivative instruments, are recorded at fair values as indicated in the preceding disclosures. To estimate fair values (classified as level 2) for its long-term debt, the Company utilized third-party quotes, which are derived all or in part from model prices, external sources, market prices, or the third-party’s internal records. Information with respect to the carrying amounts and estimated fair values of these financial instruments follow:


	March 31, 2019				December 31, 2018
	Carrying		Fair		Carrying		Fair
(Millions)	Value		Value		Value		Value
Long-term debt, excluding current portion	$	15,580	$	16,132	$	13,411	$	13,586

The fair values reflected above consider the terms of the related debt absent the impacts of derivative/hedging activity. The carrying amount of long-term debt referenced above is impacted by certain fixed-to-floating interest rate swaps that are designated as fair value hedges and by the designation of certain fixed rate Eurobond securities issued by the Company as hedging instruments of the Company’s net investment in its European subsidiaries. A number of 3M’s fixed-rate bonds were trading at a premium at March 31, 2019 and December 31, 2018 due to lower interest rates and tighter credit spreads compared to issuance levels.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2019
Commitments and Contingencies
Commitments and Contingencies	NOTE 14. Commitments and Contingencies Legal Proceedings: The Company and some of its subsidiaries are involved in numerous claims and lawsuits, principally in the United States, and regulatory proceedings worldwide. These include various products liability (involving products that the Company now or formerly manufactured and sold), intellectual property, and commercial claims and lawsuits, including those brought under the antitrust laws, and environmental proceedings. Unless otherwise stated, the Company is vigorously defending all such litigation. Additional information about the Company’s process for disclosure and recording of liabilities and insurance receivables related to legal proceedings can be found in Note 16 “Commitments and Contingencies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The following sections first describe the significant legal proceedings in which the Company is involved, and then describe the liabilities and associated insurance receivables the Company has accrued relating to its significant legal proceedings. Respirator Mask/Asbestos Litigation As of March 31, 2019, the Company is a named defendant, with multiple co-defendants, in numerous lawsuits in various courts that purport to represent approximately 2,335 individual claimants, compared to approximately 2,320 individual claimants with actions pending at December 31, 2018. The vast majority of the lawsuits and claims resolved by and currently pending against the Company allege use of some of the Company’s mask and respirator products and seek damages from the Company and other defendants for alleged personal injury from workplace exposures to asbestos, silica, coal mine dust or other occupational dusts found in products manufactured by other defendants or generally in the workplace. A minority of the lawsuits and claims resolved by and currently pending against the Company generally allege personal injury from occupational exposure to asbestos from products previously manufactured by the Company, which are often unspecified, as well as products manufactured by other defendants, or occasionally at Company premises. The Company’s current volume of new and pending matters is substantially lower than it experienced at the peak of filings in 2003. The Company expects that filing of claims by unimpaired claimants in the future will continue to be at much lower levels than in the past. Accordingly, the number of claims alleging more serious injuries, including mesothelioma, other malignancies, and black lung disease, will represent a greater percentage of total claims than in the past. Over the past twenty years, the Company has prevailed in fourteen of the fifteen cases tried to a jury (including the lawsuits in 2018 described below). In 2018, 3M received a jury verdict in its favor in two lawsuits – one in California state court in February and the other in Massachusetts state court in December – both involving allegations that 3M respirators were defective and failed to protect the plaintiffs against asbestos fibers. In April 2018, a jury in state court in Kentucky found 3M’s 8710 respirators failed to protect two coal miners from coal mine dust and awarded compensatory damages of approximately $2 million and punitive damages totaling $63 million. In August 2018, the trial court entered judgment and the Company has appealed. During March and April 2019, the Company agreed in principle to settle a substantial majority of the coal mine dust lawsuits in Kentucky and West Virginia for $340 million, including the $65 million jury verdict in April 2018 in the Kentucky case mentioned above currently on appeal. The Company has demonstrated in these past trial proceedings that its respiratory protection products are effective as claimed when used in the intended manner and in the intended circumstances. Consequently, the Company believes that claimants are unable to establish that their medical conditions, even if significant, are attributable to the Company’s respiratory protection products. Nonetheless the Company’s litigation experience indicates that claims of persons alleging more serious injuries, including mesothelioma, other malignancies, and black lung disease, are costlier to resolve than the claims of unimpaired persons, and it therefore believes the average cost of resolving pending and future claims on a per-claim basis will continue to be higher than it experienced in prior periods when the vast majority of claims were asserted by medically unimpaired claimants. As previously reported, the State of West Virginia, through its Attorney General, filed a complaint in 2003 against the Company and two other manufacturers of respiratory protection products in the Circuit Court of Lincoln County, West Virginia, and amended its complaint in 2005. The amended complaint seeks substantial, but unspecified, compensatory damages primarily for reimbursement of the costs allegedly incurred by the State for worker’s compensation and healthcare benefits provided to all workers with occupational pneumoconiosis and unspecified punitive damages. The case was inactive from the fourth quarter of 2007 until late 2013, other than a case management conference in March 2011. In November 2013, the State filed a motion to bifurcate the lawsuit into separate liability and damages proceedings. At the hearing on the motion, the court declined to bifurcate the lawsuit. No liability has been recorded for this matter because the Company believes that liability is not probable and estimable at this time. In addition, the Company is not able to estimate a possible loss or range of loss given the lack of any meaningful discovery responses by the State of West Virginia, the otherwise minimal activity in this case and the fact that the complaint asserts claims against two other manufacturers where a defendant’s share of liability may turn on the law of joint and several liability and by the amount of fault, if any, a jury might allocate to each defendant if the case is ultimately tried. Respirator Mask/Asbestos Liabilities and Insurance Receivables The Company regularly conducts a comprehensive legal review of its respirator mask/asbestos liabilities. The Company reviews recent and historical claims data, including without limitation, (i) the number of pending claims filed against the Company, (ii) the nature and mix of those claims (i.e., the proportion of claims asserting usage of the Company’s mask or respirator products and alleging exposure to each of asbestos, silica, coal or other occupational dusts, and claims pleading use of asbestos-containing products allegedly manufactured by the Company), (iii) the costs to defend and resolve pending claims, and (iv) trends in filing rates and in costs to defend and resolve claims, (collectively, the “Claims Data”). As part of its comprehensive legal review, the Company regularly provides the Claims Data to a third party with expertise in determining the impact of Claims Data on future filing trends and costs. The third party assists the Company in estimating the costs to defend and resolve pending and future claims. The Company uses these estimates to develop its best estimate of probable liability. Developments may occur that could affect the Company’s estimate of its liabilities. These developments include, but are not limited to, significant changes in (i) the key assumptions underlying the Company’s accrual, including, the number of future claims, the nature and mix of those claims, the average cost of defending and resolving claims, and in maintaining trial readiness (ii) trial and appellate outcomes, (iii) the law and procedure applicable to these claims, and (iv) the financial viability of other co-defendants and insurers. As a result of the settlements-in-principle of the coal mine dust lawsuits mentioned above, the Company’s assessment of other current and expected coal mine dust lawsuits (including the costs to resolve all current and expected coal mine dust lawsuits in Kentucky and West Virginia), its review of its respirator mask/asbestos liabilities, and the cost of resolving claims of persons who claim more serious injuries, including mesothelioma, other malignancies, and black lung disease, the Company increased its accruals in the first quarter of 2019 for respirator mask/asbestos liabilities by $313 million pre-tax, or $238 million after tax ($0.40 per diluted share). In the first quarter of 2019, the Company made payments for legal fees and settlements of $32 million related to the respirator mask/asbestos litigation. As of March 31, 2019, the Company had an accrual for respirator mask/asbestos liabilities (excluding Aearo accruals) of $954 million, up $281 million from the accrual at December 31, 2018. This accrual represents the Company’s best estimate of probable loss and reflects an estimation period for future claims that may be filed against the Company approaching the year 2050. The Company cannot estimate the amount or upper end of the range of amounts by which the liability may exceed the accrual the Company has established because of the (i) inherent difficulty in projecting the number of claims that have not yet been asserted or the time period in which future claims may be asserted, (ii) the complaints nearly always assert claims against multiple defendants where the damages alleged are typically not attributed to individual defendants so that a defendant’s share of liability may turn on the law of joint and several liability, which can vary by state, (iii) the multiple factors described above that the Company considers in estimating its liabilities, and (iv) the several possible developments described above that may occur that could affect the Company’s estimate of liabilities. As of March 31, 2019, the Company’s receivable for insurance recoveries related to the respirator mask/asbestos litigation was $4 million. The Company continues to seek coverage under the policies of certain insolvent and other insurers. Once those claims for coverage are resolved, the Company will have collected substantially all of its remaining insurance coverage for respirator mask/asbestos claims. Respirator Mask/Asbestos Litigation — Aearo Technologies On April 1, 2008, a subsidiary of the Company purchased the stock of Aearo Holding Corp., the parent of Aearo Technologies (“Aearo”). Aearo manufactured and sold various products, including personal protection equipment, such as eye, ear, head, face, fall and certain respiratory protection products. As of March 31, 2019, Aearo and/or other companies that previously owned and operated Aearo’s respirator business (American Optical Corporation, Warner-Lambert LLC, AO Corp. and Cabot Corporation (“Cabot”)) are named defendants, with multiple co-defendants, including the Company, in numerous lawsuits in various courts in which plaintiffs allege use of mask and respirator products and seek damages from Aearo and other defendants for alleged personal injury from workplace exposures to asbestos, silica-related, coal mine dust, or other occupational dusts found in products manufactured by other defendants or generally in the workplace. As of March 31, 2019, the Company, through its Aearo subsidiary, had accruals of $28 million for product liabilities and defense costs related to current and future Aearo-related asbestos and silica-related claims. This accrual represents the Company’s best estimate of Aearo’s probable loss and reflects an estimation period for future claims that may be filed against Aearo approaching the year 2050. Responsibility for legal costs, as well as for settlements and judgments, is currently shared in an informal arrangement among Aearo, Cabot, American Optical Corporation and a subsidiary of Warner Lambert and their respective insurers (the “Payor Group”). Liability is allocated among the parties based on the number of years each company sold respiratory products under the “AO Safety” brand and/or owned the AO Safety Division of American Optical Corporation and the alleged years of exposure of the individual plaintiff. Aearo’s share of the contingent liability is further limited by an agreement entered into between Aearo and Cabot on July 11, 1995. This agreement provides that, so long as Aearo pays to Cabot a quarterly fee of $100,000, Cabot will retain responsibility and liability for, and indemnify Aearo against, any product liability claims involving exposure to asbestos, silica, or silica products for respirators sold prior to July 11, 1995. Because of the difficulty in determining how long a particular respirator remains in the stream of commerce after being sold, Aearo and Cabot have applied the agreement to claims arising out of the alleged use of respirators involving exposure to asbestos, silica or silica products prior to January 1, 1997. With these arrangements in place, Aearo’s potential liability is limited to exposures alleged to have arisen from the use of respirators involving exposure to asbestos, silica, or silica products on or after January 1, 1997. To date, Aearo has elected to pay the quarterly fee. Aearo could potentially be exposed to additional claims for some part of the pre-July 11, 1995 period covered by its agreement with Cabot if Aearo elects to discontinue its participation in this arrangement, or if Cabot is no longer able to meet its obligations in these matters. Developments may occur that could affect the estimate of Aearo’s liabilities. These developments include, but are not limited to: (i) significant changes in the number of future claims, (ii) significant changes in the average cost of resolving claims, (iii) significant changes in the legal costs of defending these claims, (iv) significant changes in the mix and nature of claims received, (v) trial and appellate outcomes, (vi) significant changes in the law and procedure applicable to these claims, (vii) significant changes in the liability allocation among the co-defendants, (viii) the financial viability of members of the Payor Group including exhaustion of available insurance coverage limits, and/or (ix) a determination that the interpretation of the contractual obligations on which Aearo has estimated its share of liability is inaccurate. The Company cannot determine the impact of these potential developments on its current estimate of Aearo’s share of liability for these existing and future claims. If any of the developments described above were to occur, the actual amount of these liabilities for existing and future claims could be significantly larger than the amount accrued. Because of the inherent difficulty in projecting the number of claims that have not yet been asserted, the complexity of allocating responsibility for future claims among the Payor Group, and the several possible developments that may occur that could affect the estimate of Aearo’s liabilities, the Company cannot estimate the amount or range of amounts by which Aearo’s liability may exceed the accrual the Company has established. Environmental Matters and Litigation The Company’s operations are subject to environmental laws and regulations including those pertaining to air emissions, wastewater discharges, toxic substances, and the handling and disposal of solid and hazardous wastes enforceable by national, state, and local authorities around the world, and private parties in the United States and abroad. These laws and regulations provide, under certain circumstances, a basis for the remediation of contamination, for restoration of or compensation for damages to natural resources, and for personal injury and property damage claims. The Company has incurred, and will continue to incur, costs and capital expenditures in complying with these laws and regulations, defending personal injury and property damage claims, and modifying its business operations in light of its environmental responsibilities. In its effort to satisfy its environmental responsibilities and comply with environmental laws and regulations, the Company has established, and periodically updates, policies relating to environmental standards of performance for its operations worldwide. Under certain environmental laws, including the United States Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) and similar state laws, the Company may be jointly and severally liable, typically with other companies, for the costs of remediation of environmental contamination at current or former facilities and at off-site locations. The Company has identified numerous locations, most of which are in the United States, at which it may have some liability. Please refer to the section entitled “Environmental Liabilities and Insurance Receivables” that follows for information on the amount of the accrual. Environmental Matters As previously reported, the Company has been voluntarily cooperating with ongoing reviews by local, state, federal (primarily the U.S. Environmental Protection Agency (EPA)), and international agencies of possible environmental and health effects of various perfluorinated compounds, including perfluorooctanoate (“PFOA”), perfluorooctane sulfonate (“PFOS”), perfluorohexane sulfonate (“PFHxS”), or other per- and polyfluoroalkyl substances (collectively “PFAS”). As a result of its phase-out decision in May 2000, the Company no longer manufactures certain PFAS compounds including PFOA, PFOS, PFHxS, and their pre-cursor compounds. The company ceased manufacturing and using the vast majority of these compounds within approximately two years of the phase-out announcement and ceased all manufacturing and the last significant use of this chemistry by the end of 2008. The Company continues to manufacture a variety of shorter chain length PFAS compounds, including, but not limited to, pre-cursor compounds to perfluorobutane sulfonate (PFBS). These compounds are used as input materials to a variety of products, including engineered fluorinated fluids, fluoropolymers and fluorelastomers, as well as surfactants, additives, and coatings. Through its ongoing life cycle management and its raw material composition identification processes associated with the Company’s policies covering the use of all persistent and bio-accumulative materials, the Company continues to review, control or eliminate the presence of certain PFAS in purchased materials or as byproducts in some of 3M’s current fluorochemical manufacturing processes, products, and waste streams. Regulatory activities concerning PFOA and/or PFOS continue in the United States, Europe and elsewhere, and before certain international bodies. These activities include gathering of exposure and use information, risk assessment, and consideration of regulatory approaches. As the database of studies of both PFOA and PFOS has expanded, the EPA has developed human health effects documents summarizing the available data from these studies. In February 2014, the EPA initiated external peer review of its draft human health effects documents for PFOA and PFOS. The peer review panel met in August 2014. In May 2016, the EPA announced lifetime health advisory levels for PFOA and PFOS at 70 parts per trillion (ppt) (superseding the provisional levels established by the EPA in 2009 of 400 ppt for PFOA and 200 ppt for PFOS). Where PFOA and PFOS are found together, EPA recommends that the concentrations be added together, and the lifetime health advisory for PFOA and PFOS combined is also 70 ppt. Lifetime health advisories, which are non-enforceable and non-regulatory, provide information about concentrations of drinking water contaminants at which adverse health effects are not expected to occur over the specified exposure duration. To collect exposure information under the Safe Drinking Water Act, the EPA published on May 2, 2012 a list of unregulated substances, including six-PFAS chemicals, required to be monitored during the period 2013-2015 by public water system suppliers to determine the extent of their occurrence. Through January 2017, the EPA reported results for 4,920 public water supplies nationwide. Based on the 2016 lifetime health advisory, 13 public water supplies exceed the level for PFOA and 46 exceed the level for PFOS (unchanged from the July 2016 EPA summary). A technical advisory issued by EPA in September 2016 on laboratory analysis of drinking water samples stated that 65 public water supplies had exceeded the combined level for PFOA and PFOS. These results are based on one or more samples collected during the period 2012-2015 and do not necessarily reflect current conditions of these public water supplies. EPA reporting does not identify the sources of the PFOA and PFOS in the public water supplies. The Company is continuing to make progress in its work, under the supervision of state regulators, to address its historic disposal of PFAS-containing waste associated with manufacturing operations at its Decatur, Alabama; Cottage Grove, Minnesota; and Cordova, Illinois plants. As previously reported, the Company entered into a voluntary remedial action agreement with the Alabama Department of Environmental Management (ADEM) to address the presence of PFAS in the soil at the Company’s manufacturing facility in Decatur, Alabama. Pursuant to a permit issued by ADEM, for approximately 20 years, the Company incorporated its wastewater treatment plant sludge containing PFAS in fields at its Decatur facility. After a review of the available options to address the presence of PFAS in the soil, ADEM agreed that the preferred remediation option is to use a multilayer cap over the former sludge incorporation areas on the manufacturing site with subsequent groundwater migration controls and treatment. Implementation of that plan continues, and construction of the cap was substantially completed in 2018. The Company continues to work with the Minnesota Pollution Control Agency (MPCA) pursuant to the terms of the previously disclosed May 2007 Settlement Agreement and Consent Order to address the presence of certain PFAS in the soil and groundwater at former disposal sites in Washington County, Minnesota (Oakdale and Woodbury) and at the Company’s manufacturing facility at Cottage Grove, Minnesota. Under this agreement, the Company’s principal obligations include (i) evaluating releases of certain PFAS from these sites and proposing response actions; (ii) providing treatment or alternative drinking water upon identifying any level exceeding a Health Based Value (“HBV”) or Health Risk Limit (“HRL”) (i.e., the amount of a chemical in drinking water determined by the Minnesota Department of Health (MDH) to be safe for human consumption over a lifetime) for certain PFAS for which a HBV and/or HRL exists as a result of contamination from these sites; (iii) remediating identified sources of other PFAS at these sites that are not controlled by actions to remediate PFOA and PFOS; and (iv) sharing information with the MPCA about certain perfluorinated compounds. During 2008, the MPCA issued formal decisions adopting remedial options for the former disposal sites in Washington County, Minnesota (Oakdale and Woodbury). In August 2009, the MPCA issued a formal decision adopting remedial options for the Company’s Cottage Grove manufacturing facility. During the spring and summer of 2010, 3M began implementing the agreed upon remedial options at the Cottage Grove and Woodbury sites. 3M commenced the remedial option at the Oakdale site in late 2010. At each location the remedial options were recommended by the Company and approved by the MPCA. Remediation work has been completed at the Oakdale and Woodbury sites, and they are in an operational maintenance mode. Remediation will continue at the Cottage Grove site during 2019. In August 2014, the Illinois EPA approved a request by the Company to establish a groundwater management zone at its manufacturing facility in Cordova, Illinois, which includes ongoing pumping of impacted site groundwater, groundwater monitoring and routine reporting of results. In May 2017, the MDH issued new HBVs for PFOS and PFOA. The new HBVs are 35 ppt for PFOA and 27 ppt for PFOS. In connection with its announcement the MDH stated that “Drinking water with PFOA and PFOS, even at the levels above the updated values, does not represent an immediate health risk. These values are designed to reduce long-term health risks across the population and are based on multiple safety factors to protect the most vulnerable citizens, which makes them overprotective for most of the residents in our state.” In December 2017, the MDH issued a new HBV for perfluorobutane sulfonate (PFBS) of 2 ppb. In February 2018, the MDH published reports finding no unusual rates of certain cancers or adverse birth outcomes (low birth rates or premature births) among residents of Washington and Dakota Counties in Minnesota. In April 2019, the MDH issued a new HBV for PFOS of 15 ppt and a new HBV for PFHxS of 47 ppt. In May 2018, the EPA announced a four-step PFAS action plan, which includes evaluating the need to set Safe Drinking Water Act maximum contaminant levels (MCLs) for PFOA and PFOS and beginning the steps necessary to designate PFOA and PFOS as “hazardous substances” under CERCLA. In November 2018, EPA asked for public comment on draft toxicity assessments for two PFAS compounds, including PFBS. In February 2019, the EPA issued a PFAS Action Plan that outlines short- and long-term actions the EPA is taking to address PFAS – actions that include developing a national drinking water determination for PFOA and PFOS, strengthening enforcement authorities and evaluating cleanup approaches, nationwide drinking water monitoring for PFAS, expanding scientific knowledge for understanding and managing risk from PFAS, and developing consistent risk communication tools for communicating with other agencies and the public. The U.S. Agency for Toxic Substances and Disease Registry (ATSDR) within the Department of Health and Human Services released a draft Toxicological Profile for PFAS for public review and comment in June 2018. In the draft report, ATSDR proposed draft Minimal Risk Levels (MRLs) for PFOS, PFOA and several other PFAS. An MRL is an estimate of the daily human exposure to a hazardous substance that is likely to be without appreciable risk of adverse non-cancer health effects over a specified duration of exposure. MRLs are not intended to define cleanup or action levels for ATSDR or other agencies. In August 2018, 3M submitted comments on the ATSDR proposal, noting that there are major shortcomings with the current draft, especially with the MRLs, and that the ATSDR’s profile must reflect the best science and full weight of evidence known about these chemicals. In several states, the state legislature or the state environmental agency have been evaluating or have taken actions related to cleanup standards, groundwater values or drinking water values for PFOS, PFOA, and other PFAS. The Company cannot predict what additional regulatory actions arising from the foregoing proceedings and activities, if any, may be taken regarding such compounds or the consequences of any such actions. Litigation Related to Historical PFAS Manufacturing Operations in Alabama As previously reported, a former employee filed a putative class action lawsuit in 2002 in the Circuit Court of Morgan County, Alabama (the “St. John case”), seeking unstated damages and alleging that the plaintiffs suffered fear, increased risk, subclinical injuries, and property damage from exposure to certain perfluorochemicals at or near the Company’s Decatur, Alabama, manufacturing facility. The court in 2005 granted the Company’s motion to dismiss the named plaintiff’s personal injury-related claims on the basis that such claims are barred by the exclusivity provisions of the state’s Workers Compensation Act. The plaintiffs’ counsel filed an amended complaint in November 2006, limiting the case to property damage claims on behalf of a putative class of residents and property owners in the vicinity of the Decatur plant. In June 2015, the plaintiffs filed an amended complaint adding additional defendants, including BFI Waste Management Systems of Alabama, LLC; BFI Waste Management of North America, LLC; the City of Decatur, Alabama; Morgan County, Alabama; Municipal Utilities Board of Decatur; and Morgan County, Alabama, d/b/a Decatur Utilities. In 2005, the judge – in a second putative class action lawsuit filed by three residents of Morgan County, Alabama, seeking unstated compensatory and punitive damages involving alleged damage to their property from emissions of certain perfluorochemical compounds from the Company’s Decatur, Alabama, manufacturing facility that formerly manufactured those compounds (the “Chandler case”) – granted the Company’s motion to abate the case, effectively putting the case on hold pending the resolution of class certification issues in the St. John case. Despite the stay, plaintiffs filed an amended complaint seeking damages for alleged personal injuries and property damage on behalf of the named plaintiffs and the members of a putative class. No further action in the case is expected unless and until the stay is lifted. In February 2009, a resident of Franklin County, Alabama, filed a putative class action lawsuit in the Circuit Court of Franklin County (the “Stover case”) seeking compensatory damages and injunctive relief based on the application by the Decatur utility’s wastewater treatment plant of wastewater treatment sludge to farmland and grasslands in the state that allegedly contain PFOA, PFOS and other perfluorochemicals. The named plaintiff seeks to represent a class of all persons within the State of Alabama who have had PFOA, PFOS, and other perfluorochemicals released or deposited on their property. In March 2010, the Alabama Supreme Court ordered the case transferred from Franklin County to Morgan County. In May 2010, consistent with its handling of the other matters, the Morgan County Circuit Court abated this case, putting it on hold pending the resolution of the class certification issues in the St. John case. In October 2015, West Morgan-East Lawrence Water & Sewer Authority (Water Authority) filed an individual complaint against 3M Company, Dyneon, L.L.C, and Daikin America, Inc., in the U.S. District Court for the Northern District of Alabama. The complaint also includes representative plaintiffs who brought the complaint on behalf of themselves, and a class of all owners and possessors of property who use water provided by the Water Authority and five local water works to which the Water Authority supplies water (collectively, the “Water Utilities”). The complaint seeks compensatory and punitive damages and injunctive relief based on allegations that the defendants’ chemicals, including PFOA and PFOS from their manufacturing processes in Decatur, have contaminated the water in the Tennessee River at the water intake, and that the chemicals cannot be removed by the water treatment processes utilized by the Water Authority. In September 2016, the court granted 3M’s motion to dismiss plaintiffs’ trespass claims with prejudice, negligence claims for personal injuries, and private nuisance claims, and denied the motion to dismiss the plaintiffs’ negligence claims for property damage, public nuisance, abatement of nuisance, battery and wantonness. In April 2019, 3M and the Water Authority settled the lawsuit described above for $35 million. The Water Authority will fund a new water filtration system and, as part of the settlement, 3M agreed to indemnify the Water Authority from liability resulting from the resolution of the currently pending and future lawsuits against the Water Authority alleging liability or damages related to 3M PFAS. In June 2016, the Tennessee Riverkeeper, Inc. (Riverkeeper), a non-profit corporation, filed a lawsuit in the U.S. District Court for the Northern District of Alabama against 3M; BFI Waste Systems of Alabama; the City of Decatur, Alabama; and the Municipal Utilities Board of Decatur, Morgan County, Alabama. The complaint alleges that the defendants violated the Resource Conservation and Recovery Act in connection with the disposal of certain PFAS through their ownership and operation of their respective sites. The complaint further alleges such practices may present an imminent and substantial endangerment to health and/or the environment and that Riverkeeper has suffered and will continue to suffer irreparable harm caused by defendants’ failure to abate the endangerment unless the court grants the requested relief, including declaratory and injunctive relief. This case is stayed until June 2019 with mediation scheduled for May 2019. In August 2016, a group of over 200 plaintiffs filed a putative class action against West Morgan-East Lawrence Water and Sewer Authority (Water Authority), 3M, Dyneon, Daikin, BFI, and the City of Decatur in state court in Lawrence County, Alabama. Plaintiffs are residents of Lawrence, Morgan and other counties who are or have been customers of the Water Authority. They contend defendants have released PFAS that contaminate the Tennessee River and, in turn, their drinking water, causing damage to their health and properties. In January 2017, the court in the St. John case, discussed above, stayed this litigation pending resolution of the St. John case. In January 2017, several hundred plaintiffs sued 3M, its subsidiary Dyneon, and Daikin America in Lawrence and Morgan Counties, Alabama. The plaintiffs are owners of property, residents, and holders of property interests who receive their water from the West Morgan-East Lawrence Water and Sewer Authority (Water Authority). They assert common law claims for negligence, nuisance, trespass, wantonness, and battery, and they seek injunctive relief and punitive damages. The plaintiffs contend that the defendants own and operate manufacturing and disposal facilities in Decatur that have released and continue to release PFOA, PFOS and related chemicals into the groundwater and surface water of their sites, resulting in discharge into the Tennessee River. The plaintiffs also contend that the defendants have discharged into Bakers Creek and the Decatur Utilities Dry Creek Wastewater Treatment Plant, which, in turn, discharges wastewater containing these chemicals into the Tennessee River. The plaintiffs contend that, as a result of the alleged discharges, the water supplied by the Water Authority to the plaintiffs was, and is, contaminated with PFOA, PFOS, and related chemicals at a level dangerous to humans. In November 2017, a putative class action (the “King” case) was filed against 3M, its subsidiary Dyneon, Daikin America, and the West Morgan-East Lawrence Water and Sewer Authority (Water Authority) in the U.S. District Court for the Northern District of Alabama. The plaintiffs are residents of Lawrence and Morgan County, Alabama who receive their water from the Water Authority. They assert various common law claims, including negligence, nuisance, wantonness, and fraudulent concealment, and they seek injunctive relief, attorneys’ fees, compensatory and punitive damages for their alleged personal injuries. The plaintiffs contend that the defendants own and operate manufacturing and disposal facilities in Decatur that have released and continue to release PFOA, PFOS and related chemicals into the groundwater and surface water of their sites, resulting in discharge into the Tennessee River. The plaintiffs also contend that the defendants have discharged chemicals into the Decatur Utilities Dry Creek Wastewater Treatment Plant, which, in turn, discharged wastewater containing these chemicals into the Tennessee River. The plaintiffs contend that, as a result of the alleged discharges, the water supplied by the Water Authority to the plaintiffs was, and is, contaminated with PFOA, PFOS, and related chemicals at a level dangerous to humans. In January 2018, certain property owners in Trinity, Alabama filed a lawsuit against 3M, Dyneon, and three unnamed defendants in the U.S. District Court for the Northern District of Alabama. The plaintiffs assert claims for negligence, strict liability, trespass, nuisance, wanton and reckless conduct, and citizen suit claims for violation of the Resource Conservation and Recovery Act. They allege these claims arise from the defendants’ contamination of their property by disposal of PFAS in a landfill located on their property. The plaintiffs seek compensatory and punitive damages and a court order directing the defendants to remediate all PFAS contamination on their property. In September 2018, the case was dismissed by stipulation of the parties. In September 2018, an individual plaintiff filed a lawsuit in the U.S. District Court for the Northern District of Alabama raising allegations and claims substantially similar to those asserted by plaintiffs in the King case. Litigation Related to Historical PFAS Manufacturing Operations in Minnesota In July 2016, the City of Lake Elmo filed a lawsuit in the U.S. District Court for the District of Minnesota against 3M alleging that the City suffered damages from drinking water supplies contaminated with PFAS, including costs to construct alternative sources of drinking water. In April 2019, 3M and the City of Lake Elmo agreed to settle the lawsuit for less than $5 million. State Attorneys General Litigation related to PFAS In December 2010, the State of Minnesota, by its Attorney General, filed a lawsuit in Hennepin County District Court against 3M to recover damages (including unspecified assessment costs and reasonable attorney’s fees) for alleged injury to, destruction of, and loss of use of certain of the State’s natural resources under the Minnesota Environmental Response and Liability Act (MERLA) and the Minnesota Water Pollution Control Act (MWPCA), as well as statutory nuisance and common law claims of trespass, nuisance, and negligence with respect to the presence of PFAS in the groundwater, surface water, fish or other aquatic life, and sediments (the “NRD Lawsuit”). The State also sought declarations under MERLA that 3M is responsible for all damages the State may suffer in the future for injuries to natural resources from releases of PFAS into the environment, and that 3M is responsible for compensation for future loss or destruction of fish, aquatic life, and other damages under the MWPCA. In September 2017, the State’s damages expert submitted a report that contended the State incurred $5 billion in damages. In November 2017, the State of Minnesota filed a motion for leave to amend its complaint to seek punitive damages from 3M, and 3M filed a motion for summary judgment contending, among other things, that the State’s claims were barred by the applicable statute of limitations. In December 2017, the court urged the parties to attempt to resolve the litigation before trial, and in January 2018, the court appointed a mediator to facilitate that process. In February 2018, 3M and the State of Minnesota reached a resolution of the NRD Lawsuit. Under the terms of the settlement, 3M agreed to provide an $850 million grant to the State for a special “3M Water Quality and Sustainability Fund.” This Fund will enable projects that support water sustainability in the Twin Cities East Metro region, such as continued delivery of water to residents and enhancing groundwater recharge to support sustainable growth. The projects will also result in habitat and recreation improvements, such as fishing piers, trails, and open space preservation. 3M recorded a pre-tax charge of $897 million, inclusive of legal fees and other related obligations, in the first quarter of 2018 associated with the resolution of this matter. In June 2018, the State of New York, by its Attorney General, filed a lawsuit in Albany Country Supreme Court against 3M, Tyco Fire Products LP, Chemguard, Inc., Buckeye Fire Equipment Co., National Foam, Inc., and Kidde-Fenwal, Inc., seeking to recover the costs incurred in responding to the contamination caused by Aqueous Film Forming Foam (AFFF) manufactured by 3M and others; damages for injury to, destruction of, and loss of the State’s natural resources and related recreational series; and property damage. This case was removed to federal court and transferred to the MDL for AFFF cases. In July 2018, the now former governor of Michigan requested that the now former Michigan Attorney General file a lawsuit against 3M and others related to PFAS in a public letter. The new Michigan Attorney General has not yet announced whether she will do so. In December 2018, the State of Ohio, by its Attorney General, filed a lawsuit in the Common Pleas Court of Lucas County, Ohio against 3M, Tyco Fire Products LP, Chemguard, Inc., Buckeye Fire Equipment Co., National Foam, Inc., and Angus Fire Armour Corp., seeking injunctive relief and compensatory and punitive damages for remediation costs and alleged injury to Ohio natural resources from AFFF manufacturers. This case was removed to federal court and transferred to the MDL for AFFF cases. In February 2019, the State of New York, by its Attorney General, filed a second lawsuit in Albany County Supreme Court against 3M, Tyco Fire Products LP, Chemguard, Inc., Buckeye Fire Equipment Co., and National Foam, Inc. seeking (1) compensatory damages consisting of (i) costs incurred and to be incurred by the State in investigating, monitoring, remediating, and otherwise responding to injuries and/or threats to public health and the environment caused by defendants' AFFF products used at sites across New York State; and (ii) damages for harm to the State's natural resources; (2) punitive damages; and (3) injunctive and equitable relief in the form of a monetary fund for the State's reasonably expected future damages, and/or requiring defendants to perform investigative and remedial work in response to the threats and/or injuries they have caused. In March 2019, the New Jersey Attorney General filed two actions against 3M, Dupont, and Chemours on behalf of the New Jersey Department of Environmental Protection (NJDEP), the NJDEP’s commissioner, and the New Jersey Spill Compensation Fund. One complaint was filed in Salem County and alleges the defendants should pay for clean-up and removal costs and damages as a result of alleged discharges of hazardous substances and pollutants by the defendants at Dupont’s Chambers Works facility in Pennsville, New Jersey. The other complaint was filed in Middlesex County and seeks similar relief relating to DuPont’s Parlin, New Jersey facility. 3M is included as a defendant in both cases because it allegedly supplied PFOA to DuPont for use at the facilities at issue. Both cases expressly seek to have the defendants pay all costs necessary to investigate, remediate, assess, and restore the affected natural resources of New Jersey. Aqueous Film Forming Foam (AFFF) Environmental Litigation 3M manufactured and marketed AFFF for use in firefighting at airports and military bases from approximately 1963 to 2000. As of March 31, 2019, 96 putative class action and other lawsuits have been filed against 3M and other defendants in various state and federal courts where current or former airports, military bases, or fire training facilities are or were located. In these cases, plaintiffs typically allege that certain PFAS used in AFFF contaminated the soil and groundwater where AFFF was used and seek damages for loss of use and enjoyment of properties, diminished property values, investigation costs, remediation costs, and in some cases, personal injury and funds for medical monitoring. Several companies have been sued along with 3M, including Ansul Co. (acquired by Tyco, Inc.), Angus Fire, Buckeye Fire Protection Co., Chemguard, National Foam, Inc., and United Technologies Corp. In December 2018, the U.S. Judicial Panel on Multidistrict Litigation granted motions to transfer and consolidate all AFFF cases pending in federal courts to the U.S. District Court for the District of South Carolina to be managed in a multi-district litigation (MDL) proceeding to centralize pre-trial proceedings. As of March 31, 2019, there were 88 cases in the MDL. Other PFAS-related Environmental Litigation 3M manufactured and sold products containing various perfluorooctanyl compounds (PFOA and PFOS), including Scotchgard, for several decades. Starting in 2017, 3M has been served with individual and putative class action complaints in various state and federal courts alleging, among other things, that 3M’s customers’ improper disposal of PFOA and PFOS resulted in the contamination of groundwater or surface water. The plaintiffs in these cases generally allege that 3M failed to warn its customers about the hazards of improper disposal of the product. They also generally allege that contaminated groundwater has caused various injuries, including personal injury, loss of use and enjoyment of their properties, diminished property values, investigation costs, and remediation costs. Several companies have been sued along with 3M, including Saint-Gobain Performance Plastics Corp., Honeywell International Inc. f/k/a Allied-Signal Inc. and/or AlliedSignal Laminate Systems, Inc., E.I. DuPont De Nemours and Co., and various carpet manufacturers. In New York, 3M is defending 22 individual cases and one putative class action filed in the U.S. District Court for the Northern District of New York against 3M, Saint-Gobain Performance Plastics Corp. (“Saint-Gobain”), Honeywell International Inc. and E.I. DuPont De Nemours and Company. Plaintiffs allege that 3M manufactured and sold PFOA that was used for manufacturing purposes at Saint-Gobain’s and Honeywell’s facilities located in the Village of Hoosick Falls and the Town of Hoosick. Plaintiffs claim that the drinking water around Hoosick Falls became contaminated with unsafe levels of PFOA due to the activities of the defendants and allege that they suffered bodily injury due to the ingestion and inhalation of PFOA. Plaintiffs seek unstated compensatory, consequential, and punitive damages, as well as attorneys’ fees and costs. In Michigan, two putative class actions are pending in the U.S. District Court for the Western District of Michigan against 3M and Wolverine World Wide (Wolverine) and other defendants. The complaints include some or all of the following claims: negligence, trespass, intentional and negligent infliction of emotional distress, battery, products liability, public and private nuisance, fraudulent concealment, and unjust enrichment. The actions arise from Wolverine’s allegedly improper disposal of materials and wastes related to their shoe manufacturing operations. Plaintiffs allege Wolverine used 3M Scotchgard in its manufacturing process and that chemicals from 3M’s product have contaminated the environment after being disposed of near drinking water sources. In addition to the two federal court class actions, as of March 31, 2019, 3M has been named as a defendant in 214 private individual actions in Michigan state court based on similar allegations. Wolverine also filed a third-party complaint against 3M in a suit by the State of Michigan against Wolverine seeking to compel Wolverine to investigate and address contamination associated with its historic disposal activity. In Alabama, 3M is defending two lawsuits filed in state court by local public water suppliers relating to 3M’s sale of PFAS-containing products to carpet manufacturers in Georgia. The plaintiffs in these cases allege that the carpet manufacturers improperly discharged PFOA and PFOS into the surface water and groundwater, contaminating drinking water supplies of cities located downstream along the Coosa River. In Delaware, 3M is defending one putative class action filed in federal court relating to alleged contamination allegedly caused by waste from Wolverine World Wide, which used Scotchgard in its manufacture of leather products. 3M allegedly supplied Scotchgard to Wolverine. In Maine, 3M is defending one individual action in federal court relating to contamination of drinking water and dairy farm operations by PFAS from wastewater sludge. Plaintiffs contend that PFAS entered the wastewater via discharge from another company’s facility in Kennebunk, Maine. In New Jersey, 3M is defending one putative class action in federal court that relates to the DuPont “Chambers Works” plant. Plaintiffs allege that PFAS compounds from the plant have contaminated private wells for drinking water. In October 2018, 3M and other defendants, including DuPont and Chemours, were named in a putative class action in the U.S. District Court for the Southern District of Ohio. The named plaintiff, a firefighter allegedly exposed to PFAS chemicals through his use of firefighting foam, purports to represent a class of “all individuals residing within the United States who, at the time a class is certified in this case, have detectable levels of PFAS materials in their blood serum.” The plaintiff brings claims for negligence, battery, and conspiracy, but does not seek damages for personal injury, medical monitoring, or property damage. Instead, the plaintiff seeks an order finding the defendants “are liable and responsible for the PFAS in Plaintiff’s and the class members’ blood and/or bodies” and an order “establishing an independent panel of scientists” to be “tasked with independently studying, evaluating, reviewing, identifying, publishing, and notifying/informing the Class” of research results. In March 2019, the New Jersey Department of Environmental Protection (NJDEP) issued a directive, information request and notice to Solvay, DuPont, Chemours, and 3M relating to PFAS. The NJDEP, in its effort to obtain a “full understanding” of Respondents’ historical and current “development, manufacture, transport, use, storage, release, discharge, and/or disposal of PFAS in New Jersey,” requested information from each respondent and a collective meeting with the NJDEP to discuss costs to “investigate, test, treat, cleanup, and remove” PFAS from New Jersey’s environment. Other Environmental Litigation In July 2018, the Company, along with more than 120 other companies, was served with a complaint seeking cost recovery and contribution towards the cleaning up of approximately eight miles of the Lower Passaic River in New Jersey. The plaintiff, Occidental Chemical Corporation, alleges that it agreed to design and pay the estimated $165 million cost to remove and cap sediment containing eight chemicals of concern, including PCBs and dioxins. The complaint seeks to spread those costs among the defendants, including the Company. The Company’s involvement in the case relates to its past use of two commercial drum conditioning facilities in New Jersey. Whether, and to what extent, the Company may be required to contribute to the costs at issue in the case remains to be determined. For environmental matters and litigation described above, no liability has been recorded as the Company believes liability in those matters is not probable and estimable and the Company is not able to estimate a possible loss or range of loss at this time, except for those matters described below. Environmental Liabilities and Insurance Receivables The Company periodically examines whether the contingent liabilities related to the environmental matters and litigation described above are probable and estimable based on experience and developments in those matters. During the first quarter of 2019, the EPA issued its PFAS Action Plan and the Company settled the litigation with the Water Authority (both matters are described in more detail above). The Company recently completed a comprehensive review with the assistance of environmental consultants and other experts regarding environmental matters and litigation related to historical PFAS manufacturing operations in Minnesota, Alabama, Gendorf Germany, and at four former landfills in Alabama. As a result of these developments and of that review, the Company increased its accrual for “other environmental liabilities” by $235 million pre-tax (including the settlement with the Water Authority) or $186 million after tax ($0.32 per diluted share). As of March 31, 2019, the Company had recorded liabilities of $292 million for “other environmental liabilities.” This accrual represents the Company’s best estimate of the probable loss: (i) to implement the Settlement Agreement and Consent Order with the MPCA (including the best estimate of the probable liability under the settlement of the NRD Lawsuit with the State of Minnesota for interim treatment of municipal and private wells), (ii) the remedial action agreement with ADEM, (iii) mitigation plans for the presence of PFAS in the soil and groundwater at two former disposal sites in Washington County, Minnesota (Oakdale and Woodbury), (iv) to cover certain environmental matters and litigation in which 3M is a defendant related to the manufacture and disposal of PFAS at five 3M facilities, including three in the United States and two in Europe. The Company is not able to estimate a possible loss or range of loss in excess of the established accruals at this time. As of March 31, 2019, the Company had recorded liabilities of $25 million for estimated non-PFAS related “environmental remediation” costs to clean up, treat, or remove hazardous substances at current or former 3M manufacturing or third-party sites. The Company evaluates available facts with respect to each individual site each quarter and records liabilities for remediation costs on an undiscounted basis when they are probable and reasonably estimable, generally no later than the completion of feasibility studies or the Company’s commitment to a plan of action. Liabilities for estimated costs of environmental remediation, depending on the site, are based primarily upon internal or third-party environmental studies, and estimates as to the number, participation level and financial viability of any other potentially responsible parties, the extent of the contamination and the nature of required remedial actions. The Company adjusts recorded liabilities as further information develops or circumstances change. The Company expects that it will pay the amounts recorded over the periods of remediation for the applicable sites, currently ranging up to 20 years. It is difficult to estimate the cost of environmental compliance and remediation given the uncertainties regarding the interpretation and enforcement of applicable environmental laws and regulations, the extent of environmental contamination and the existence of alternative cleanup methods. Developments may occur that could affect the Company’s current assessment, including, but not limited to: (i) changes in the information available regarding the environmental impact of the Company’s operations and products; (ii) changes in environmental regulations, changes in permissible levels of specific compounds in drinking water sources, or changes in enforcement theories and policies, including efforts to recover natural resource damages; (iii) new and evolving analytical and remediation techniques; (iv) success in allocating liability to other potentially responsible parties; and (v) the financial viability of other potentially responsible parties and third-party indemnitors. For sites included in both “environmental remediation liabilities” and “other environmental liabilities,” at which remediation activity is largely complete and remaining activity relates primarily to operation and maintenance of the remedy, including required post-remediation monitoring, the Company believes the exposure to loss in excess of the amount accrued would not be material to the Company’s consolidated results of operations or financial condition. However, for locations at which remediation activity is largely ongoing, the Company cannot estimate a possible loss or range of loss in excess of the associated established accruals for the reasons described above. The Company has both pre-1986 general and product liability occurrence coverage and post-1985 occurrence reported product liability and other environmental coverage for environmental matters and litigation. As of March 31, 2019, the Company’s receivable for insurance recoveries related to the environmental matters and litigation was $33 million. The Company increased its receivables for insurance recoveries by $25 million in the first quarter of 2019 related to these matters. Various factors could affect the timing and amount of recovery of this and future expected increases in the receivable, including (i) delays in or avoidance of payment by insurers; (ii) the extent to which insurers may become insolvent in the future, (iii) the outcome of negotiations with insurers, and (iv) the scope of the insurers’ purported defenses and exclusions to avoid coverage. Product Liability Litigation As of March 31, 2019, the Company is a named defendant in lawsuits involving approximately 5,080 plaintiffs (compared to approximately 5,015 plaintiffs at December 31, 2018) who allege the Bair Hugger™ patient warming system caused a surgical site infection. Nearly all of the lawsuits are pending in federal court in Minnesota. The plaintiffs claim they underwent various joint arthroplasty, cardiovascular, and other surgeries and later developed surgical site infections due to the use of the Bair Hugger™ patient warming system (the Bair Hugger™ product line was acquired by 3M as part of the 2010 acquisition of Arizant, Inc., a leading manufacturer of patient warming solutions designed to prevent hypothermia and maintain normal body temperature in surgical settings). The plaintiffs seek damages and other relief based on theories of strict liability, negligence, breach of express and implied warranties, failure to warn, design and manufacturing defect, fraudulent and/or negligent misrepresentation/concealment, unjust enrichment, and violations of various state consumer fraud, deceptive or unlawful trade practices and/or false advertising acts. The U.S. Judicial Panel on Multidistrict Litigation (JPML) granted the plaintiffs’ motion to transfer and consolidate all cases pending in federal courts to the U.S. District Court for the District of Minnesota to be managed in a multi-district litigation (MDL) proceeding. In 2017, the U.S. District Court and the Minnesota state courts denied the plaintiffs’ motions to amend their complaints to add claims for punitive damages. At a joint hearing before the U.S. District Court and the Minnesota State court, on the parties’ motion to exclude each other’s experts, and 3M’s motion for summary judgment with respect to general causation, the federal court did not exclude the plaintiffs’ experts and denied 3M’s motion for summary judgment on general causation. The U.S. District Court is reconsidering that decision. In January 2018, the state court, after hearing the same arguments, excluded plaintiffs’ experts and granted 3M’s motion for summary judgment on general causation, dismissing all 61 cases pending before the state court in Minnesota. Plaintiffs appealed that ruling and the state court’s punitive damages ruling. In January 2019, the Minnesota Court of Appeals affirmed the Minnesota state court orders in their entirety. The Minnesota Supreme Court denied plaintiffs’ petition for review. In April 2018, the federal court partially granted 3M’s motion for summary judgment in the first bellwether case, leaving for trial a claim for strict liability based upon design defect. The court dismissed the plaintiff’s claims for negligence, failure to warn, and common law and statutory fraud. In the trial of the first bellwether case in May 2018, the jury returned a unanimous verdict in 3M’s favor finding that the Bair Hugger™ patient warming system was not defective and was not the cause of the plaintiff’s injury. The plaintiff has appealed the verdict to the U.S. Court of Appeals for the Eighth Circuit. Of the other 12 bellwether cases designated for trial, the courts or the plaintiffs have so far dismissed 11 cases. The remaining bellwether case had been set for trial in May 2019, but the federal court has postponed that trial pending ruling in defendants’ motion to reconsider. 3M is also defending two state court actions. One case is pending in Hidalgo County, Texas and combines Bair Hugger product liability claims with medical malpractice claims and set for trial in September 2019. Another case is pending in Ramsey County, Minnesota, and was filed after the Minnesota state court’s summary judgment ruling. In June 2016, the Company was served with a putative class action filed in the Ontario Superior Court of Justice for all Canadian residents who underwent various joint arthroplasty, cardiovascular, and other surgeries and later developed surgical site infections due to the use of the Bair Hugger™ patient warming system. The representative plaintiff seeks relief (including punitive damages) under Canadian law based on theories similar to those asserted in the MDL. No liability has been recorded for the Bair Hugger™ litigation because the Company believes that any such liability is not probable and estimable at this time. In September 2011, 3M Oral Care launched Lava Ultimate CAD/CAM dental restorative material. The product was originally indicated for inlay, onlay, veneer, and crown applications. In June 2015, 3M Oral Care voluntarily removed crown applications from the product’s instructions for use, following reports from dentists of patients’ crowns debonding, requiring additional treatment. The product remains on the market for other applications. 3M communicated with the U.S. Food and Drug Administration, as well as regulators outside the United States. 3M also informed customers and distributors of its action, offered to accept return of unused materials and provide refunds. In May 2018, 3M reached a preliminary settlement for an amount that did not have a material impact to the Company of the lawsuit pending in the U.S. District Court for the District of Minnesota that sought certification of a class of dentists in the United States and its territories. The settlement is subject to the court’s approval and certification of the settlement class, with a right of class members to opt-out of the settlement and bring individual claims against the Company. Aearo Technologies sold Dual-Ended Combat Arms – Version 2 earplugs starting in 2006. 3M acquired Aearo Technologies in 2008 and sold these earplugs from 2008 through 2015, when the product was discontinued. In December 2018, a military veteran filed an individual lawsuit against 3M in the San Bernardino Superior Court in California alleging that he sustained personal injuries while serving in the military caused by 3M’s Dual-Ended Combat Arms earplugs – Version 2. The plaintiff asserts claims of product liability and fraudulent misrepresentation and concealment. The plaintiff seeks various damages, including medical and related expenses, loss of income, and punitive damages. As of March 31, 2019, the Company is a named defendant in approximately 635 lawsuits (including 6 putative class actions) in various state and federal courts that purport to represent approximately 1,700 individual claimants making similar allegations. In April 2019, the U.S. Judicial Panel on Multidistrict Litigation granted motions to transfer and consolidate all cases pending in federal courts to the U.S. District Court for the Northern District of Florida to be managed in a multi-district litigation (MDL) proceeding to centralize pre-trial proceedings. For product liability litigation matters described in this section for which a liability has been recorded, the Company believes the amount recorded is not material to the Company’s consolidated results of operations or financial condition. In addition, the Company is not able to estimate a possible loss or range of loss in excess of the established accruals at this time.

Leases

3 Months Ended

Mar. 31, 2019

Leases

Leases

NOTE 15. Leases

The Company adopted ASU No. 2016-02 and related standards (collectively ASC 842, Leases), which replaced previous lease accounting guidance, on January 1, 2019 using the modified retrospective method of adoption. 3M elected the transition method expedient which allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, prior periods have not been restated. Due to the cumulative net impact of adopting ASC 842, the January 1, 2019 balance of retained earnings was increased by $14 million, primarily relating to previously deferred gains from sale-leaseback transactions. In addition, adoption of the new standard resulted in the recording of right of use assets and associated lease liabilities of $0.8 billion each as of January 1, 2019. The Company’s accounting for finance leases (previously called capital leases) remains substantially unchanged. ASC 842 did not have a material impact on 3M’s consolidated income statement. 3M elected the package of practical expedients permitted under the transition guidance within ASC 842, which includes not reassessing lease classification of existing leases. The Company did not elect the hindsight practical expedient.

3M determines if an arrangement is a lease upon inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The right to control the use of an asset includes the right to obtain substantially all of the economic benefits of the underlying asset and the right to direct how and for what purpose the asset is used. 3M determines certain service agreements that contain the right to use an underlying asset are not leases because 3M does not control how and for what purpose the identified asset is used. Examples of such agreements include master supply agreements, product processing agreements, warehouse and distribution services agreements, power purchase agreements, and transportation purchase agreements.

Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is 3M’s incremental borrowing rate or, if available, the rate implicit in the lease. 3M determines the incremental borrowing rate for each lease based primarily on its lease term and the economic environment of the applicable country or region.

As a lessee, the Company leases distribution centers, office space, land, and equipment. Certain 3M lease agreements include rental payments adjusted annually based on changes in an inflation index. 3M’s leases do not contain material residual value guarantees or material restrictive covenants. Lease expense is recognized on a straight-line basis over the lease term.

Certain leases include one or more options to renew, with terms that can extend the lease term up to five years. 3M includes options to renew the lease as part of the right of use lease asset and liability when it is reasonably certain the Company will exercise the option. In addition, certain leases contain fair value purchase and termination options with an associated penalty. In general, 3M is not reasonably certain to exercise such options.

For the measurement and classification of its lease agreements, 3M groups lease and non-lease components into a single lease component for all underlying asset classes. Variable lease payments primarily include payments for non-lease components, such as maintenance costs, payments for leased assets used beyond their noncancelable lease term as adjusted for contractual options to terminate or renew, and payments for non-components such as sales tax. Certain 3M leases contain immaterial variable lease payments based on number of units produced.

The components of lease expense are as follows:


	Three months ended
(Millions)	March 31, 2019
Operating lease cost	$	72
Finance lease cost:
Amortization of assets		4
Interest on lease liabilities		—
Variable lease cost		20
Total net lease cost	$	96

Income related to sub-lease activity is immaterial for the Company.

Supplemental balance sheet information related to leases is as follows:


	Location on Face of	As of:
(Millions unless noted)	Balance Sheet	March 31, 2019
Operating leases:
Operating lease right of use assets	Operating lease right of use assets	$	797

Current operating lease liabilities	Operating lease liabilities - current	$	255
Noncurrent operating lease liabilities	Operating lease liabilities		531
Total operating lease liabilities		$	786

Finance leases:
Property and equipment, at cost	Property, plant and equipment	$	191
Accumulated amortization	Property, plant and equipment (accumulated depreciation)		(89)
Property and equipment, net		$	102

Current obligations of finance leases	Other current liabilities	$	16
Finance leases, net of current obligations	Other liabilities		84
Total finance lease liabilities		$	100

Weighted average remaining lease term (in years):
Operating leases			4.7
Finance leases			8.5
Weighted average discount rate:
Operating leases			3.0	%
Finance leases			4.9	%

Supplemental cash flow and other information related to leases is as follows:


	Three months ended
(Millions)	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	75
Operating cash flows from finance leases		3
Financing cash flows from finance leases		—

Right of use assets obtained in exchange for lease liabilities:
Operating leases		48
Finance leases		9

Gain on sale leaseback transactions, net		—

In the first quarter of 2019, 3M sold and leased-back certain recently constructed machinery and equipment in return for municipal securities, which in aggregate, were recorded as a finance lease asset and obligation of approximately $9 million. Refer to Note 9 in 3M’s 2018 Annual Report on Form 10-K for additional non-cash details associated with prior activity.

Maturities of lease liabilities were as follows:


	March 31, 2019
(Millions)	Finance Leases		Operating Leases
Remainder of 2019	$	17	$	209
2020		15		211
2021		11		137
2022		11		100
2023		11		71
After 2023		40		121
Total	$	105	$	849
Less: Amounts representing interest		(5)		(63)
Present value of future minimum lease payments		100		786
Less: Current obligations		16		255
Long-term obligations	$	84	$	531

As of March 31, 2019, the Company has additional operating and finance lease commitments associated with real estate that have not yet commenced of approximately $143 million and $40 million, respectively.

Disclosures related to periods prior to adoption of new lease standard:

Capital and Operating Leases:
Rental expense under operating leases was $393 million in 2018, $343 million in 2017 and $318 million in 2016. It is 3M’s practice to secure renewal rights for leases, thereby giving 3M the right, but not the obligation, to maintain a presence in a leased facility. 3M has the following primary capital leases:

·

In 2003, 3M recorded a capital lease asset and obligation of approximately 34 million British Pound (GBP), or approximately $43 million at December 31, 2018, exchange rates, for a building in the United Kingdom (with a lease term of 22 years).

·

3M sold and leased-back certain recently constructed machinery and equipment in return for municipal securities, which in aggregate, were recorded as a capital lease asset and obligation of approximately $13 million in 2018, $13 million in 2017, and $12 million in 2016, with an average remaining lease term remaining of 15 years at December 31, 2018.

Minimum lease payments under capital and operating leases with non-cancelable terms in excess of one year as of December 31, 2018, were as follows:


			Operating
(Millions)	Capital Leases		Leases
2019	$	18	$	283
2020		16		208
2021		14		153
2022		12		122
2023		12		92
After 2023		32		253
Total	$	104	$	1,111
Less: Amounts representing interest		12
Present value of future minimum lease payments		92
Less: Current obligations under capital leases		17
Long-term obligations under capital leases	$	75

Stock-Based Compensation

3 Months Ended

Mar. 31, 2019

Stock-Based Compensation

Stock-Based Compensation

NOTE 16. Stock-Based Compensation

The 3M 2016 Long-Term Incentive Plan provides for the issuance or delivery of up to 123,965,000 shares of 3M common stock pursuant to awards granted under the plan. Awards may be issued in the form of incentive stock options, nonqualified stock options, progressive stock options, stock appreciation rights, restricted stock, restricted stock units, other stock awards, and performance units and performance shares. As of March 31, 2019, the remaining shares available for grant under the LTIP Program are 22.0 million.

The Company’s annual stock option and restricted stock unit grant is 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 36 percent of the annual grant stock-based compensation expense; therefore, higher stock-based compensation expense is recognized in the first quarter.

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. These grants do not result in the issuance of common stock and are considered immaterial by the Company.

Amounts recognized in the financial statements with respect to stock-based compensation programs, which include stock options, restricted stock, restricted stock units, performance shares and the General Employees’ Stock Purchase Plan (GESPP), are provided in the following table. Capitalized stock-based compensation amounts were not material for the three months ended March 31, 2019 and 2018.

Stock-Based Compensation Expense


	Three months ended
	March 31,
(Millions)	2019		2018
Cost of sales	$	22	$	23
Selling, general and administrative expenses		82		109
Research, development and related expenses		26		27
Stock-based compensation expenses	$	130	$	159
Income tax benefits	$	(80)	$	(98)
Stock-based compensation expenses (benefits), net of tax	$	50	$	61

Stock Option Program

The following table summarizes stock option activity during the three months ended March 31, 2019:


				Weighted
				Average
		Weighted		Remaining	Aggregate
	Number of	Average		Contractual	Intrinsic Value
(Options in thousands)	Options	Exercise Price		Life (months)	(millions)
Under option —
January 1	34,569	$	138.98
Granted:
Annual	3,423		201.12
Exercised	(1,983)		82.26
Forfeited	(9)		205.82
March 31	36,000	$	148.00	71	$	2,233
Options exercisable
March 31	28,703	$	133.67	61	$	2,154

Stock options vest over a period from one year to three years with the expiration date at 10 years from date of grant. As of March 31, 2019, there was $117 million of compensation expense that has yet to be recognized related to non-vested stock option based awards. This expense is expected to be recognized over the remaining weighted-average vesting period of 25 months. The total intrinsic values of stock options exercised were $235 million and $283 million during the three months ended March 31, 2019 and 2018, respectively. Cash received from options exercised was $162 million and $166 million for the three months ended March 31, 2019 and 2018, respectively. The Company’s actual tax benefits realized for the tax deductions related to the exercise of employee stock options were $49 million and $61 million for the three months ended March 31, 2019 and 2018, respectively.

For the primary 2019 annual stock option grant, the weighted average fair value at the date of grant was calculated using the Black-Scholes option-pricing model and the assumptions that follow.

Stock Option Assumptions


	Annual
	2019
Exercise price	$	201.12
Risk-free interest rate		2.6	%
Dividend yield		2.5	%
Expected volatility		20.4	%
Expected life (months)		79
Black-Scholes fair value	$	34.19

Expected volatility is a statistical measure of the amount by which a stock price is expected to fluctuate during a period. For the 2019 annual grant date, the Company estimated the expected volatility based upon the following three volatilities of 3M stock: the median of the term of the expected life rolling volatility; the median of the most recent term of the expected life volatility; and the implied volatility on the grant date. The expected term assumption is based on the weighted average of historical grants.

Restricted Stock and Restricted Stock Units

The following table summarizes restricted stock and restricted stock unit activity during the three months ended March 31, 2019:



		Weighted
		Average
	Number of	Grant Date
(Shares in thousands)	Shares	Fair Value
Nonvested balance —
As of January 1	1,789	$	180.02
Granted
Annual	551		201.12
Other	1		199.63
Vested	(669)		147.90
Forfeited	(17)		169.34
As of March 31	1,655	$	200.17

As of March 31, 2019, there was $129 million of compensation expense that has yet to be recognized related to non-vested restricted stock and restricted stock units. This expense is expected to be recognized over the remaining weighted-average vesting period of 26 months. The total fair value of restricted stock and restricted stock units that vested during the three months ended March 31, 2019 and 2018 was $133 million and $150 million, respectively. The Company’s actual tax benefits realized for the tax deductions related to the vesting of restricted stock and restricted stock units was $26 million and $28 million for the three months ended March 31, 2019 and 2018, respectively.

Restricted stock units granted generally vest three years following the grant date assuming continued employment. Dividend equivalents equal to the dividends payable on the same number of shares of 3M common stock accrue on these restricted stock units during the vesting period, although no dividend equivalents are paid on any of these restricted stock units that are forfeited prior to the vesting date. Dividends are paid out in cash at the vest date on restricted stock units. Since the rights to dividends are forfeitable, there is no impact on basic earnings per share calculations. Weighted average restricted stock unit shares outstanding are included in the computation of diluted earnings per share.

Performance Shares

Instead of restricted stock units, the Company makes annual grants of performance shares to members of its executive management. The 2019 performance criteria for these performance shares (organic volume growth, return on invested capital, free cash flow conversion, and earnings per share growth) were selected because the Company believes that they are important drivers of long-term stockholder value. The number of shares of 3M common stock that could actually be delivered at the end of the three-year performance period may be anywhere from 0% to 200% of each performance share granted, depending on the performance of the Company during such performance period. When granted, these performance shares are awarded at 100% of the estimated number of shares at the end of the three-year performance period and are reflected under “Granted” in the table below. Non-substantive vesting requires that expense for the performance shares be recognized over one or three years depending on when each individual became a 3M executive. The performance share grants accrue dividends, therefore the grant date fair value is equal to the closing stock price on the date of grant. Since the rights to dividends are forfeitable, there is no impact on basic earnings per share calculations. Weighted average performance shares whose performance period is complete are included in computation of diluted earnings per share.

The following table summarizes performance share activity during the three months ended March 31, 2019:



		Weighted
		Average
	Number of	Grant Date
(Shares in thousands)	Shares	Fair Value
Undistributed balance —
As of January 1	562	$	188.96
Granted	162		207.49
Distributed	(210)		162.16
Performance change	(125)		209.40
As of March 31	389	$	204.50

As of March 31, 2019, there was $30 million of compensation expense that has yet to be recognized related to performance shares. This expense is expected to be recognized over the remaining weighted-average earnings period of 21 months. The total fair value of performance shares that were distributed were $45 million and $48 million for the three months ended March 31, 2019 and 2018, respectively. The Company’s actual tax benefits realized for the tax deductions related to the distribution of performance shares were $9 million and $11 million for the three months ended March 31, 2019 and 2018, respectively.

Business Segments

3 Months Ended

Mar. 31, 2019

Business Segments

Business Segments

NOTE 17. Business Segments

3M’s businesses are organized, managed and internally grouped into segments based on differences in markets, products, technologies and services. 3M manages its operations in five business segments: Industrial; Safety and Graphics; Health Care; Electronics and Energy; and Consumer. 3M’s five 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. Transactions among reportable segments are recorded at cost. 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. The difference between operating income and pre-tax income relates to interest income and interest expense, which are not allocated to business segments, along with non-service cost components of pension and postretirement net periodic benefit costs.

As part of 3M’s continuing effort to improve the alignment of its businesses around markets and customers, the Company made the following changes, effective in the first quarter of 2019, and other revisions impacting business segment reporting:

Continued alignment of customer account activity

·

As part of 3M’s regular customer-focus initiatives, the Company realigned certain customer account activity (“sales district”) to correlate with the primary divisional product offerings in various countries and reduce complexity for customers when interacting with multiple 3M businesses. This largely impacted the amount of dual credit certain business segments receive as a result of sales district attribution. 3M business segment reporting measures include dual credit to business segments for certain sales and operating income. This dual credit is based on which business segment provides customer account activity with respect to a particular product sold in a specific country. As a result, previously reported aggregate business segment net sales and operating income for the total year 2018 decreased $32 million and $8 million, respectively, offset by corresponding decreases in the elimination of dual credit net sales and operating income amounts.

Creation of Closure and Masking Systems Division and Medical Solutions Division

·

3M created the Closure and Masking Systems Division, which combines the masking tape, packaging tape and personal care portfolios formerly within Industrial Adhesives and Tapes Division in the Industrial business segment into a separate division also within the Industrial business segment. 3M created the Medical Solutions Division in the Health Care business segment, which combines the former Critical and Chronic Care Division and Infection Prevention Division (which were also both within the Health Care business segment).

Additional actions impacting business segment reporting

·

The business associated with certain safety products sold through retail channels in the Asia Pacific region was realigned from the Personal Safety Division within the Safety and Graphics Business segment to the Construction and Home Improvement Division within the Consumer Business segment. This change resulted in a decrease in previously reported net sales and operating income for total year 2018 of $12 million and $1 million, respectively, in the Safety and Graphics business segment, offset by a corresponding increase in net sales and operating income within the Consumer business segment. Certain previously non-allocated costs related to manufacturing and technology of centrally managed material resource centers of expertise within Corporate and Unallocated are now reflected as being allocated to the business segments. As a result, previously reported aggregate business segment operating income for the total year 2018 decreased $58 million, offset by a corresponding increase in operating income within Corporate and Unallocated.

The financial information presented herein reflects the impact of the preceding changes between business segments for all periods presented.

In March 2019, 3M announced the upcoming realignment of the company from five to four business segments. The new alignment will enable the company to better serve global customers and markets. This realignment will be effective in the second quarter of 2019, with the changes reflected in all periods presented.

Business Segment Information


	Three months ended
	March 31,
(Millions)	2019		2018
Net Sales
Industrial	$	2,929	$	3,135
Safety and Graphics		1,704		1,779
Health Care		1,540		1,535
Electronics and Energy		1,190		1,350
Consumer		1,123		1,145
Corporate and Unallocated		21		—
Elimination of Dual Credit		(644)		(666)
Total Company	$	7,863	$	8,278

Operating Income
Industrial	$	585	$	714
Safety and Graphics		396		481
Health Care		432		458
Electronics and Energy		284		336
Consumer		219		220
Corporate and Unallocated		(624)		(1,037)
Elimination of Dual Credit		(156)		(165)
Total Company	$	1,136	$	1,007

Corporate and unallocated operating income includes a variety of miscellaneous items, such as corporate investment gains and losses, certain derivative gains and losses, certain insurance-related gains and losses, certain litigation and environmental expenses, corporate restructuring charges and certain under- or over-absorbed costs (e.g. pension, stock-based compensation) that the Company may choose not to allocate directly to its business segments. Corporate and Unallocated also includes sales, costs, and income from contract manufacturing, transition services and other arrangements with the acquirer of all of the Communication Markets Division following its divestiture in 2018. Because this category includes a variety of miscellaneous items, it is subject to fluctuation on a quarterly and annual basis.

3M business segment reporting measures include dual credit to business segments for certain sales and related operating income. Management evaluates each of its five business segments based on net sales and operating income performance, including dual credit reporting to further incentivize sales growth. As a result, 3M reflects additional (“dual”) credit to another business segment when the customer account activity (“sales district”) with respect to the particular product sold to the external customer is provided by a different business segment. This additional dual credit is largely reflected at the division level. For example, certain respirators are primarily sold by the Personal Safety Division within the Safety and Graphics business segment; however, a sales district within the Industrial business segment provides the contact for sales of the product to particular customers. In this example, the non-primary selling segment (Industrial) would also receive credit for the associated net sales initiated through its sales district and the related approximate operating income. The assigned operating income related to dual credit activity may differ from operating income that would result from actual costs associated with such sales. The offset to the dual credit business segment reporting is reflected as a reconciling item entitled “Elimination of Dual Credit,” such that sales and operating income in total are unchanged.

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

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 Annual Report on Form 10-K.

As described in Note 17, effective in the first quarter of 2019, the Company changed its business segment reporting in its continuing effort to improve the alignment of businesses around markets and customers. These changes included the realignment of certain customer account activity in various countries (affecting dual credit reporting), creation of the Closure and Masking Systems and Medical Solutions divisions, and certain other actions that impacted segment reporting. Segment information presented herein reflects the impact of these changes for all periods presented.

Changes to Significant Accounting Policies

The following significant accounting policies have been added or changed since the Company’s 2018 Annual Report on Form 10-K.

Leases: As described in the “New Accounting Pronouncements” section, 3M adopted Accounting Standards Update (ASU) No. 2016-02, Leases, and other related ASUs (collectively, Accounting Standards Codification (ASC) 842) on January 1, 2019, using the modified retrospective method of adoption. This ASU replaced previous lease accounting guidance. The Company’s accounting policy with respect to leases and additional disclosure relative to ASC 842 are included in Note 15.

Income Taxes: As described in the “New Accounting Pronouncements” section, 3M adopted ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The Company’s accounting policy for income taxes has been updated to indicate the uses of the portfolio approach for releasing income tax effects from accumulated other comprehensive loss.

Foreign Currency Translation

Local currencies generally are considered the functional currencies outside the United States. 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 month-end exchange rates of each applicable month. Cumulative translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in shareholders’ equity.

3M has a subsidiary in Venezuela, the financial statements of which are remeasured as if its functional currency were that of its parent because Venezuela’s economic environment is considered highly inflationary. The operating income of this subsidiary was immaterial as a percent of 3M’s consolidated operating income for 2018. The Venezuelan government sets official rates of exchange and conditions precedent to purchase foreign currency at these rates with local currency. The government has also operated various expanded secondary currency exchange mechanisms that have been eliminated and replaced from time to time. Such rates and conditions have been and continue to be subject to change. For the periods presented, the financial statements of 3M’s Venezuelan subsidiary were remeasured utilizing the rate associated with the secondary auction mechanism, Tipo de Cambio Complementario (DICOM), or its predecessor. During the third quarter of 2018, the Venezuelan government effected a conversion of its currency to the Sovereign Bolivar (VES), essentially equating to its previous Venezuelan Bolivar divided by 100,000.

Note 1 in 3M’s 2018 Annual Report on Form 10-K provides additional information the Company considers in determining the exchange rate used relative to its Venezuelan subsidiary as well as factors which could lead to its deconsolidation. The Company continues to monitor these circumstances. Changes in applicable exchange rates or exchange mechanisms may continue in the future. These changes could impact the rate of exchange applicable to remeasure the Company’s net monetary assets (liabilities) denominated in VES. As of March 31, 2019, the Company had a balance of net monetary liabilities denominated in VES of approximately 60 million VES and the DICOM exchange rate was approximately 3,333 VES per U.S. dollar. A need to deconsolidate the Company’s Venezuelan subsidiary’s operations may result from a lack of exchangeability of VES-denominated cash coupled with an acute degradation in the ability to make key operational decisions due to government regulations in Venezuela. Based upon a review of factors as of March 31, 2019, the Company continues to consolidate its Venezuelan subsidiary. 3M also continues to monitor the macro-economic and operating business environment of Venezuela and may make certain resulting strategic decisions. As of March 31, 2019, the balance of accumulated other comprehensive loss associated with this subsidiary was approximately $145 million, and the amount of intercompany receivables due from this subsidiary and its total equity balance were not significant.

3M has subsidiaries in Argentina, the operating income of which was less than one half of one percent of 3M’s consolidated operating income for 2018. Based on various indices, Argentina’s cumulative three-year inflation rate exceeded 100 percent in the second quarter of 2018, thus being considered highly inflationary. As a result, beginning in the third quarter of 2018, the financial statements of the Argentine subsidiaries were remeasured as if their functional currency were that of their parent. As of March 31, 2019, the Company had a balance of net monetary assets denominated in Argentine pesos (ARS) of approximately 190 million ARS and the exchange rate was approximately 43 ARS per U.S. dollar.

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 (5.2 million average options for the three months ended March 31, 2019 and 1.9 million average options for the three months ended March 31, 2018). The computations for basic and diluted earnings per share follow:

Earnings Per Share Computations


	Three months ended
	March 31,
(Amounts in millions, except per share amounts)	2019		2018
Numerator:
Net income attributable to 3M	$	891	$	602

Denominator:
Denominator for weighted average 3M common shares outstanding – basic		577.5		596.2
Dilution associated with the Company’s stock-based compensation plans		11.0		16.5
Denominator for weighted average 3M common shares outstanding – diluted		588.5		612.7

Earnings per share attributable to 3M common shareholders – basic	$	1.54	$	1.01
Earnings per share attributable to 3M common shareholders – diluted	$	1.51	$	0.98

New Accounting Pronouncements

See the Company’s 2018 Annual Report on Form 10-K for a more detailed discussion of the standards in the tables that follow, except for those pronouncements issued subsequent to the most recent Form 10-K filing date for which separate, more detailed discussion is provided below as applicable.


Standards Adopted During the Current Fiscal Year
Standard		Relevant Description	Effective Date for 3M	Impact and Other Matters
ASU No. 2016-02, Leases (as amended by ASU Nos. 2018-10, 2018-11, 2018-20, and 2019-01)		Provides a lessee model that requires entities to recognize assets and liabilities for most leases, but recognize expenses on their income statements in a manner similar to previous accounting. This ASU does not make fundamental changes to previous lessor accounting.	January 1, 2019	See Note 15 for detailed discussion and disclosures. Adopted using the modified retrospective approach. Impact on January 1, 2019 includes a $14 million increase in the balance of retained earnings and recording of additional lease assets and liabilities of $0.8 billion each.
ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities		Shortens the amortization period to the earliest call date for the premium related to certain callable debt securities that have explicit, noncontingent call features and are callable at a fixed price and preset date.	January 1, 2019	3M’s marketable security portfolio includes limited instances of callable debt securities held at a premium. The adoption of this ASU did not have a material impact.
ASU No. 2017-11, (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception		Amends (1) the classification of financial instruments with down-round features as liabilities or equity by revising certain guidance relative to evaluating if they must be accounted for as derivative instruments and (2) the guidance on recognition and measurement of freestanding equity-classified instruments.	January 1, 2019	No financial instruments with down-round features have been issued. The adoption of this ASU did not have a material impact.
ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities, and related ASU No. 2018-16	Amends previous guidance to simplify application of hedge accounting in certain situations and allow companies to better align their hedge accounting with risk management activities. Simplifies related accounting by eliminating requirement to separately measure and report hedge ineffectiveness. Expands an entity’s ability to hedge nonfinancial and financial risk components.		January 1, 2019		See Note 12 for additional details. The adoption of this ASU did not have a material impact.
ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income		Permits entities to reclassify, to retained earnings, the one-time income tax effects stranded in accumulated other comprehensive income arising from the change in the U.S. federal corporate tax rate as a result of the Tax Cuts and Jobs Act of 2017.	January 1, 2019	See Note 8 for additional discussion. Impact on January 1, 2019 includes increases of $0.9 billion in each of retained earnings and accumulated other comprehensive loss. See also the preceding “Changes to Significant Accounting Policies” section.
ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting		Aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees. Clarifies that any share-based payment issued to a customer should be evaluated under ASC 606, Revenue from Contracts with Customers.	January 1, 2019	The adoption of this ASU did not have a material impact as 3M does not issue share-based payments to nonemployees or customers.

Standards Adopted During the Current Fiscal Year (continued)
Standard	Relevant Description	Effective Date for 3M	Impact and Other Matters
ASU No. 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made	Clarifies that a contribution is conditional if the arrangement includes both a barrier for the recipient to be entitled to the assets transferred and a right of return for the assets transferred. Recognition of contribution expense is deferred for conditional arrangements and is immediate for unconditional arrangements.	January 1, 2019	Adopted prospectively with no immediate impact.
ASU No. 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities	Changes how entities evaluate decision-making fees under the variable interest guidance. Indirect interests held through related parties under common control will be considered on a proportionate basis rather than in their entirety.	January 1, 2019	Adoption of this ASU did not have a material impact as 3M does not have significant involvement with entities subject to consolidation considerations impacted by variable interest entity model factors.
ASU No. 2018-18, Clarifying the Interaction between Topic 808 and Topic 606	Clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606, Revenue from Contracts with Customers, when the counterparty is a customer. Precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction.	January 1, 2019	Adoption of this ASU did not have a material impact as 3M has limited collaborative arrangements.
ASU No. 2017-09, Scope of Modification Accounting	Provides that fewer changes to the terms of share-based payment awards will require accounting under the modification model (which generally would have required additional compensation cost).	January 1, 2018	Adopted prospectively with no immediate impact. 3M does not typically make changes to the terms or conditions of its issued share-based payments.


Standards Issued and Not Yet Adopted
Standard	Relevant Description	Effective Date for 3M	Impact and Other Matters
ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (in conjunction with ASU No. 2018-19)	Introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. Amends the current other-than-temporary impairment model for available-for-sale debt securities. For such securities with unrealized losses, entities will still consider if a portion of any impairment is related only to credit losses and therefore recognized as a reduction in income.	January 1, 2020	Required to make a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. 3M is currently assessing this ASU’s impact.
ASU No. 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement	Eliminates, amends, and adds disclosure requirements for fair value measurements, primarily related to Level 3 fair value measurements.	January 1, 2020	As this ASU relates to disclosures only, there will be no impact to 3M’s consolidated results of operations and financial condition.
ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract	Aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service arrangement (i.e. hosting arrangement) with the guidance on capitalizing costs in ASC 350-40, Internal-Use Software.	January 1, 2020	ASU permits either prospective or retrospective transition. As 3M utilizes limited cloud-computing services where significant implementation costs are incurred, the Company does not expect this ASU to have a material impact.

Relevant New Standards Issued Subsequent to Most Recent Annual Report

In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 – Financial Instruments. The new ASU provides narrow-scope amendments to help apply these recent standards. The transition requirements and effective date of this ASU for 3M is January 1, 2020 with early adoption permitted for certain amendments. The Company is currently assessing this standard’s impact on 3M’s consolidated result of operations and financial condition.

Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Significant Accounting Policies

Earnings per share


	Three months ended
	March 31,
(Amounts in millions, except per share amounts)	2019		2018
Numerator:
Net income attributable to 3M	$	891	$	602

Denominator:
Denominator for weighted average 3M common shares outstanding – basic		577.5		596.2
Dilution associated with the Company’s stock-based compensation plans		11.0		16.5
Denominator for weighted average 3M common shares outstanding – diluted		588.5		612.7

Earnings per share attributable to 3M common shareholders – basic	$	1.54	$	1.01
Earnings per share attributable to 3M common shareholders – diluted	$	1.51	$	0.98

Revenue (Tables)

3 Months Ended

Mar. 31, 2019

Revenue

Schedule of disaggregated revenue recognized during the period


	Three months ended
	March 31,
Net Sales (Millions)	2019		2018
Abrasives	$	433	$	473
Adhesives and Tapes		807		842
Advanced Materials		312		304
Automotive and Aerospace		500		556
Automotive Aftermarket		390		419
Closure and Masking Systems		278		307
Separation and Purification		214		235
Other Industrial		(5)		(1)
Total Industrial Business Group	$	2,929	$	3,135

Commercial Solutions	$	458	$	485
Personal Safety		939		957
Roofing Granules		92		101
Transportation Safety		217		237
Other Safety and Graphics		(2)		(1)
Total Safety and Graphics Business Group	$	1,704	$	1,779

Drug Delivery	$	92	$	119
Food Safety		83		81
Health Information Systems		260		205
Medical Solutions		764		777
Oral Care		341		354
Other Health Care		—		(1)
Total Health Care Business Group	$	1,540	$	1,535

Electronics	$	863	$	930
Energy		330		420
Other Electronics and Energy		(3)		—
Total Electronics and Energy Business Group	$	1,190	$	1,350

Consumer Health Care	$	98	$	102
Home Care		258		269
Home Improvement		462		458
Stationery and Office		294		303
Other Consumer		11		13
Total Consumer Business Group	$	1,123	$	1,145

Corporate and Unallocated	$	21	$	—
Elimination of Dual Credit		(644)		(666)
Total Company	$	7,863	$	8,278


	Three months ended March 31, 2019
Net Sales (Millions)		United States		Asia Pacific		Europe, Middle East and Africa		Latin America and Canada		Other Unallocated		Worldwide
Industrial		$	1,082	$	823	$	727	$	297	$	—	$	2,929
Safety and Graphics			635		469		408		191		1		1,704
Health Care			725		305		378		132		—		1,540
Electronics and Energy			203		840		94		53		—		1,190
Consumer			631		266		130		96		—		1,123
Corporate and Unallocated			19		2		—		3		(3)		21
Elimination of Dual Credit			(249)		(227)		(113)		(55)		—		(644)
Total Company		$	3,046	$	2,478	$	1,624	$	717	$	(2)	$	7,863


	Three months ended March 31, 2018
Net Sales (Millions)		United States		Asia Pacific		Europe, Middle East and Africa		Latin America and Canada		Other Unallocated		Worldwide
Industrial		$	1,100	$	937	$	787	$	312	$	(1)	$	3,135
Safety and Graphics			652		493		436		198		—		1,779
Health Care			702		298		394		141		—		1,535
Electronics and Energy			229		910		145		67		(1)		1,350
Consumer			610		286		143		106		—		1,145
Corporate and Unallocated			(1)		—		—		—		1		—
Elimination of Dual Credit			(248)		(248)		(113)		(57)		—		(666)
Total Company		$	3,044	$	2,676	$	1,792	$	767	$	(1)	$	8,278

Acquisitions and Divestitures (Tables)

3 Months Ended

Mar. 31, 2019

Acquisitions

Allocation of purchase price


	2019 Acquisition Activity
			Finite-Lived
			Intangible-Asset
(Millions)			Weighted-Average
Asset (Liability)	M*Modal		Lives (Years)
Accounts receivable	$	77
Other current assets		16
Property, plant, and equipment		9
Purchased finite-lived intangible assets:
Customer related intangible assets		290	15
Other technology-based intangible assets		160	6
Definite-lived tradenames		11	6
Purchased goodwill		580
Other assets		55
Accounts payable and other liabilities		(113)
Interest bearing debt		(251)
Deferred tax asset/(liability)		(130)

Net assets acquired	$	704

Supplemental information:
Cash paid	$	708
Less: Cash acquired		4
Cash paid, net of cash acquired	$	704

Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets

Goodwill


(Millions)	Industrial		Safety and Graphics		Health Care		Electronics and Energy		Consumer		Total Company
Balance as of December 31, 2018		2,614		4,325		1,654		1,250		208		10,051
Acquisition activity		—		—		580		—		—		580
Translation and other		(28)		(4)		(11)		(7)		30		(20)
Balance as of March 31, 2019	$	2,586	$	4,321	$	2,223	$	1,243	$	238	$	10,611

Acquired Intangible Assets


	March 31,		December 31,
(Millions)	2019		2018
Customer related intangible assets	$	2,577	$	2,291
Patents		539		542
Other technology-based intangible assets		738		576
Definite-lived tradenames		674		664
Other amortizable intangible assets		125		125
Total gross carrying amount	$	4,653	$	4,198

Accumulated amortization — customer related		(1,034)		(998)
Accumulated amortization — patents		(489)		(487)
Accumulated amortization — other technology-based		(350)		(333)
Accumulated amortization — definite-lived tradenames		(284)		(276)
Accumulated amortization — other		(88)		(88)
Total accumulated amortization	$	(2,245)	$	(2,182)

Total finite-lived intangible assets — net	$	2,408	$	2,016

Non-amortizable intangible assets (primarily tradenames)		639		641
Total intangible assets — net	$	3,047	$	2,657

Schedule of amortization expense for acquired intangible assets

Amortization expense for the three months ended March 31, 2019 and 2018 follows:


	Three months ended
	March 31,
(Millions)	2019		2018
Amortization expense	$	69	$	64

Schedule of expected amortization expense for acquired amortizable intangible assets

Expected amortization expense for acquired amortizable intangible assets recorded as of March 31, 2019:


	Remainder of												After
(Millions)	2019		2020		2021		2022		2023		2024		2024
Amortization expense	$	215	$	276	$	267	$	252	$	222	$	196	$	980

Restructuring Actions and Exit Activities (Tables) - 2018 Restructuring Actions

3 Months Ended

Mar. 31, 2019

Schedule of restructuring charges by income statement line

The restructuring charges were recorded in the income statement as follows:


(Millions)	Second Quarter 2018		Fourth Quarter 2018
Cost of sales	$	12	$	15
Selling, general and administrative expenses		89		16
Research, development and related expenses		4		1
Total	$	105	$	32

Accrued restructuring action balances

Restructuring actions, including cash and non-cash impacts, follow:


(Millions)	Employee-Related		Asset-Related		Total
Expense incurred in the second quarter and fourth quarter of 2018	$	125	$	12	$	137
Non-cash changes		—		(12)		(12)
Cash payments		(24)		—		(24)
Adjustments		(17)		—		(17)
Accrued restructuring action balances as of December 31, 2018	$	84	$	—	$	84
Cash payments		(13)		—		(13)
Adjustments		(1)		—		(1)
Accrued restructuring action balances as of March 31, 2019	$	70	$	—	$	70

Supplemental Income Statement Information (Tables)

3 Months Ended

Mar. 31, 2019

Supplemental Income Statement Information

Schedule of other expense (income)


	Three months ended
	March 31,
(Millions)	2019		2018
Interest expense	$	104	$	82
Interest income		(20)		(21)
Pension and postretirement net periodic benefit cost (benefit)		(36)		(19)
Total	$	48	$	42

Supplemental Equity and Comprehensive Income Information (Tables)

3 Months Ended

Mar. 31, 2019

Supplemental Equity and Comprehensive Income Information

Consolidated Statement of Changes in Equity

Three months ended March 31, 2019


			3M Company Shareholders
			Common						Accumulated
			Stock and						Other
			Additional						Comprehensive		Non-
			Paid-in		Retained		Treasury		Income		controlling
(Millions)	Total		Capital		Earnings		Stock		(Loss)		Interest
Balance at December 31, 2018	$	9,848	$	5,652	$	40,636	$	(29,626)	$	(6,866)	$	52

Impact of adoption of ASU No. 2018-02 (See Note 1)		—				853				(853)
Impact of adoption of ASU No. 2016-02 (See Note 1)		14				14
Net income		893				891						2
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		77								77		—
Defined benefit pension and post-retirement plans adjustment		84								84		—
Cash flow hedging instruments		6								6		—
Total other comprehensive income (loss), net of tax		167
Dividends declared		(830)				(830)
Stock-based compensation		112		112
Reacquired stock		(666)						(666)
Issuances pursuant to stock option and benefit plans		219				(405)		624
Balance at March 31, 2019	$	9,757	$	5,764	$	41,159	$	(29,668)	$	(7,552)	$	54

Three months ended March 31, 2018


			3M Company Shareholders
			Common						Accumulated
			Stock and						Other
			Additional						Comprehensive		Non-
			Paid-in		Retained		Treasury		Income		controlling
(Millions)	Total		Capital		Earnings		Stock		(Loss)		Interest
Balance at December 31, 2017	$	11,622	$	5,361	$	39,115	$	(25,887)	$	(7,026)	$	59

Net income		606				602						4
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		167								168		(1)
Defined benefit pension and post-retirement plans adjustment		116								116		—
Cash flow hedging instruments		(61)								(61)		—
Total other comprehensive income (loss), net of tax		222
Dividends declared		(810)				(810)
Stock-based compensation		144		144
Reacquired stock		(972)						(972)
Issuances pursuant to stock option and benefit plans		227				(454)		681
Balance at March 31, 2018	$	11,039	$	5,505	$	38,453	$	(26,178)	$	(6,803)	$	62

Changes in Accumulated Other Comprehensive Income (Loss) Attributable to 3M

Three months ended March 31, 2019


							Total
			Defined Benefit		Cash Flow		Accumulated
			Pension and		Hedging		Other
	Cumulative		Postretirement		Instruments,		Comprehensive
	Translation		Plans		Unrealized		Income
(Millions)	Adjustment		Adjustment		Gain (Loss)		(Loss)
Balance at December 31, 2018, net of tax:	$	(2,098)	$	(4,832)	$	64	$	(6,866)
Impact of adoption of ASU No. 2018-02 (See Note 1)		(13)		(817)		(23)		(853)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		103		—		13		116
Amounts reclassified out		—		104		(7)		97
Total other comprehensive income (loss), before tax		103		104		6		213
Tax effect		(26)		(20)		—		(46)
Total other comprehensive income (loss), net of tax		77		84		6		167
Balance at March 31, 2019, net of tax:	$	(2,034)	$	(5,565)	$	47	$	(7,552)

Three months ended March 31, 2018


							Total
			Defined Benefit		Cash Flow		Accumulated
			Pension and		Hedging		Other
	Cumulative		Postretirement		Instruments,		Comprehensive
	Translation		Plans		Unrealized		Income
(Millions)	Adjustment		Adjustment		Gain (Loss)		(Loss)
Balance at December 31, 2017, net of tax:	$	(1,638)	$	(5,276)	$	(112)	$	(7,026)
Other comprehensive income (loss), before tax:
Amounts before reclassifications		129		—		(82)		47
Amounts reclassified out		—		151		34		185
Total other comprehensive income (loss), before tax		129		151		(48)		232
Tax effect		39		(35)		(13)		(9)
Total other comprehensive income (loss), net of tax		168		116		(61)		223
Balance at March 31, 2018, net of tax:	$	(1,470)	$	(5,160)	$	(173)	$	(6,803)

Reclassifications Out of Accumulated Other Comprehensive Income


	Amount Reclassified from
Details about Accumulated Other	Accumulated Other Comprehensive Income
Comprehensive Income Components	Three months ended March 31,				Location on Income
(Millions)	2019		2018		Statement
Gains (losses) associated with defined benefit pension and postretirement plans amortization
Prior service benefit	$	16	$	19	See Note 11
Net actuarial loss		(120)		(170)	See Note 11
Total before tax		(104)		(151)
Tax effect		20		35	Provision for income taxes
Net of tax	$	(84)	$	(116)

Cash flow hedging instruments gains (losses)
Foreign currency forward/option contracts	$	7	$	(34)	Cost of sales
Total before tax		7		(34)
Tax effect		(1)		8	Provision for income taxes
Net of tax	$	6	$	(26)
Total reclassifications for the period, net of tax	$	(78)	$	(142)

Marketable Securities (Tables)

3 Months Ended

Mar. 31, 2019

Marketable Securities.

Schedule of marketable securities


(Millions)	March 31, 2019		December 31, 2018
Corporate debt securities	$	16	$	—
Commercial paper		510		366
Certificates of deposit/time deposits		10		10
U.S. municipal securities		3		3
Asset-backed securities		—		1
Current marketable securities	$	539	$	380

U.S. municipal securities	$	46	$	37
Non-current marketable securities	$	46	$	37

Total marketable securities	$	585	$	417

Marketable securities by contractual maturity


(Millions)	March 31, 2019
Due in one year or less	$	539
Due after one year through five years		13
Due after five years through ten years		24
Due after ten years		9
Total marketable securities	$	585

Long-Term Debt and Short-Term Borrowings (Tables)

3 Months Ended

Mar. 31, 2019

Long-Term Debt and Short-Term Borrowings

Schedule of Maturities of Long-Term Debt


Remainder of												After
2019		2020		2021		2022		2023		2024		2024		Total
$	747	$	1,318	$	1,686	$	1,603	$	1,315	$	1,102	$	8,557	$	16,328

Pension and Postretirement Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2019

Pension and Postretirement Benefit Plans

Components of net periodic benefit cost (benefit)


	Three months ended March 31,
	Qualified and Non-qualified
	Pension Benefits								Postretirement
	United States				International				Benefits
(Millions)	2019		2018		2019		2018		2019		2018
Net periodic benefit cost (benefit)
Operating expense
Service cost	$	62	$	72	$	33	$	36	$	11	$	13
Non-operating expense
Interest cost	$	155	$	141	$	39	$	40	$	21	$	20
Expected return on plan assets		(260)		(272)		(75)		(78)		(20)		(21)
Amortization of prior service benefit		(6)		(6)		(3)		(3)		(7)		(10)
Amortization of net actuarial loss		91		126		20		29		9		15
Total non-operating expense (benefit)		(20)		(11)		(19)		(12)		3		4
Total net periodic benefit cost (benefit)	$	42	$	61	$	14	$	24	$	14	$	17

Derivatives (Tables)

3 Months Ended

Mar. 31, 2019

Derivatives

Gain (loss) on derivative instruments designated as cash flow hedges


	Pretax Gain (Loss)
	Recognized in Other		Pretax Gain (Loss) Reclassified
	Comprehensive		from Accumulated Other
Three months ended March 31, 2019	Income on Derivative		Comprehensive Income into Income
(Millions)	Amount		Location	Amount
Foreign currency forward/option contracts	$	30	Cost of sales	$	7
Interest rate swap contracts		(17)	Interest expense		—
Total	$	13		$	7

Pretax Gain (Loss) Recognized in

Pretax Gain (Loss)

Income on Effective Portion of

Ineffective Portion of Gain

Recognized in Other

Derivative as a Result of

(Loss) on Derivative and

Comprehensive

Reclassification from

Amount Excluded from

Income on Effective

Accumulated Other

Effectiveness Testing

Three months ended March 31, 2018

Portion of Derivative

Comprehensive Income

Recognized in Income

(Millions)

Amount

Location

Amount

Location

Amount

Foreign currency forward/option contracts

$

(79)

Cost of sales

$

(34)

Cost of sales

$

—

Interest rate swap contracts

(3)

Interest expense

—

Interest expense

—

Total

$

(82)

$

(34)

$

—

Gain (loss) on derivative instruments designated as fair value hedges


	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
Three months ended March 31, 2018	Recognized in Income			Recognized in Income
(Millions)	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	(11)	Interest expense	$	11
Total		$	(11)		$	11

The following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges:


					Cumulative Amount of Fair Value Hedging
	Carrying Value of the				Adjustment Included in the Carrying Value
	Hedged Liabilities (in millions)				of the Hedged Liabilities (in millions)
Location on the Consolidated Balance Sheet	March 31, 2019		December 31, 2018		March 31, 2019		December 31, 2018
Short-term borrowings and current portion of long-term debt	$	598	$	596	$	(1)	$	(4)
Long-term debt		1,272		1,276		20		18
Total	$	1,870	$	1,872	$	19	$	14

Gain (loss) on derivative and non-derivative instruments designated as net investment hedges




	Pretax Gain (Loss)
	Recognized as
	Cumulative Translation		Amount Excluded
	within Other		from Effectiveness Testing
Three months ended March 31, 2019	Comprehensive Income		Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	92	Cost of sales	$	—
Foreign currency forward contracts		15	Cost of sales		5
Total	$	107		$	5


	Pretax Gain (Loss)
	Recognized as
	Cumulative Translation
	within Other		Ineffective Portion of Gain (Loss) on
	Comprehensive Income		Instrument and Amount Excluded
	on Effective Portion of		from Effectiveness Testing
Three months ended March 31, 2018	Instrument		Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	(128)	Cost of sales	$	(2)
Foreign currency forward contracts		(6)	Cost of sales		(1)
Total	$	(134)		$	(3)

Gain (loss) on derivative instruments not designated as hedging instruments


	Three months ended March 31, 2019
	Gain (Loss) on Derivative Recognized in
	Income
(Millions)	Location	Amount
Foreign currency forward/option contracts	Cost of sales	$	(2)
Foreign currency forward contracts	Interest expense		(8)
Total		$	(10)


	Three months ended March 31, 2018
	Gain (Loss) on Derivative Recognized in
	Income
(Millions)	Location	Amount
Foreign currency forward/option contracts	Cost of sales	$	(3)
Foreign currency forward contracts	Interest expense		23
Total		$	20

Location in consolidated statement of income and pre-tax amounts recognized in income related to derivative instruments designated in cash flow or fair value hedging relationship


	Location and Amount of Gain (Loss) Recognized in Income
	Three months ended March 31, 2019
(Millions)	Cost of sales		Other expense (income), net
Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of cash flow or fair value hedges are recorded	$	4,310	$	48

The effects of fair value and cash flow hedging:
Gain or (loss) on cash flow hedging relationships:
Foreign currency forward/option contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	$	7	$	—
Interest rate swap contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income		—		—

Gain or (loss) on fair value hedging relationships:
Interest rate swap contracts:
Hedged items	$	—	$	(5)
Derivatives designated as hedging instruments		—		5

Location and Fair Value of Derivative Instruments


	Gross		Assets			Liabilities
March 31, 2019	Notional			Fair			Fair
(Millions)	Amount		Location	Value Amount		Location	Value Amount
Derivatives designated as
hedging instruments
Foreign currency forward/option contracts	$	2,742	Other current assets	$	88	Other current liabilities	$	11
Foreign currency forward/option contracts		1,100	Other assets		53	Other liabilities		1
Interest rate swap contracts		600	Other current assets		—	Other current liabilities		1
Interest rate swap contracts		1,453	Other assets		19	Other liabilities		31
Total derivatives designated as hedging instruments				$	160		$	44

Derivatives not designated as
hedging instruments
Foreign currency forward/option contracts	$	2,925	Other current assets	$	11	Other current liabilities	$	12
Total derivatives not designated as hedging instruments				$	11		$	12

Total derivative instruments				$	171		$	56


	Gross		Assets			Liabilities
December 31, 2018	Notional			Fair			Fair
(Millions)	Amount		Location	Value Amount		Location	Value Amount
Derivatives designated as
hedging instruments
Foreign currency forward/option contracts	$	2,277	Other current assets	$	74	Other current liabilities	$	12
Foreign currency forward/option contracts		1,099	Other assets		39	Other liabilities		4
Interest rate swap contracts		1,000	Other current assets		—	Other current liabilities		14
Interest rate swap contracts		1,403	Other assets		19	Other liabilities		17
Total derivatives designated as hedging instruments				$	132		$	47

Derivatives not designated as
hedging instruments
Foreign currency forward/option contracts	$	2,484	Other current assets	$	14	Other current liabilities	$	6
Total derivatives not designated as hedging instruments				$	14		$	6

Total derivative instruments				$	146		$	53

Offsetting Assets

Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties


			Gross Amounts not Offset in the
			Consolidated Balance Sheet that are Subject
	Gross Amount of		to Master Netting Agreements
	Derivative Assets		Gross Amount of
	Presented in the		Eligible Offsetting
March 31, 2019	Consolidated		Recognized		Cash Collateral		Net Amount of
(Millions)	Balance Sheet		Derivative Liabilities		Received		Derivative Assets
Derivatives subject to master netting agreements	$	171	$	39	$	—	$	132
Derivatives not subject to master netting agreements		—						—
Total	$	171					$	132


December 31, 2018
(Millions)
Derivatives subject to master netting agreements	$	146	$	38	$	—	$	108
Derivatives not subject to master netting agreements		—						—
Total	$	146					$	108

Offsetting Liabilities

Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties


			Gross Amounts not Offset in the
			Consolidated Balance Sheet that are Subject
	Gross Amount of		to Master Netting Agreements
	Derivative Liabilities		Gross Amount of
	Presented in the		Eligible Offsetting
March 31, 2019	Consolidated		Recognized		Cash Collateral		Net Amount of
(Millions)	Balance Sheet		Derivative Assets		Pledged		Derivative Liabilities
Derivatives subject to master netting agreements	$	56	$	39	$	—	$	17
Derivatives not subject to master netting agreements		—						—
Total	$	56					$	17


December 31, 2018
(Millions)
Derivatives subject to master netting agreements	$	53	$	38	$	—	$	15
Derivatives not subject to master netting agreements		—						—
Total	$	53					$	15

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Measurements

Fair Value, Assets and Liabilities Measured on Recurring Basis


			Fair Value Measurements
Description	Fair Value at		Using Inputs Considered as
(Millions)	March 31, 2019		Level 1		Level 2		Level 3
Assets:
Available-for-sale:
Marketable securities:
Corporate debt securities	$	16	$	—	$	16	$	—
Commercial paper		510		—		510		—
Certificates of deposit/time deposits		10		—		10		—
U.S. municipal securities		49		—		—		49
Derivative instruments — assets:
Foreign currency forward/option contracts		152		—		152		—
Interest rate swap contracts		19		—		19		—

Liabilities:
Derivative instruments — liabilities:
Foreign currency forward/option contracts		24		—		24		—
Interest rate swap contracts		32		—		32		—


			Fair Value Measurements
Description	Fair Value at		Using Inputs Considered as
(Millions)	December 31, 2018		Level 1		Level 2		Level 3
Assets:
Available-for-sale:
Marketable securities:
Commercial paper	$	366	$	—	$	366	$	—
Certificates of deposit/time deposits		10		—		10		—
Asset-backed securities		1		—		1		—
U.S. municipal securities		40		—		—		40
Derivative instruments — assets:
Foreign currency forward/option contracts		127		—		127		—
Interest rate swap contracts		19		—		19		—

Liabilities:
Derivative instruments — liabilities:
Foreign currency forward/option contracts		22		—		22		—
Interest rate swap contracts		31		—		31		—

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation


	Three months ended
Marketable securities — certain U.S. municipal securities only	March 31,
(Millions)	2019		2018
Beginning balance	$	40	$	30
Total gains or losses:
Included in earnings		—		—
Included in other comprehensive income		—		—
Purchases and issuances		9		—
Sales and settlements		—		—
Transfers in and/or out of level 3		—		—
Ending balance	$	49	$	30
Change in unrealized gains or losses for the period included in earnings for securities held at the end of the reporting period		—		—

Fair Value of Financial Instruments by Balance Sheet Grouping


	March 31, 2019				December 31, 2018
	Carrying		Fair		Carrying		Fair
(Millions)	Value		Value		Value		Value
Long-term debt, excluding current portion	$	15,580	$	16,132	$	13,411	$	13,586

Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases

Schedule of components of lease expense


	Three months ended
(Millions)	March 31, 2019
Operating lease cost	$	72
Finance lease cost:
Amortization of assets		4
Interest on lease liabilities		—
Variable lease cost		20
Total net lease cost	$	96

Schedule of supplemental balance sheet information


	Location on Face of	As of:
(Millions unless noted)	Balance Sheet	March 31, 2019
Operating leases:
Operating lease right of use assets	Operating lease right of use assets	$	797

Current operating lease liabilities	Operating lease liabilities - current	$	255
Noncurrent operating lease liabilities	Operating lease liabilities		531
Total operating lease liabilities		$	786

Finance leases:
Property and equipment, at cost	Property, plant and equipment	$	191
Accumulated amortization	Property, plant and equipment (accumulated depreciation)		(89)
Property and equipment, net		$	102

Current obligations of finance leases	Other current liabilities	$	16
Finance leases, net of current obligations	Other liabilities		84
Total finance lease liabilities		$	100

Weighted average remaining lease term (in years):
Operating leases			4.7
Finance leases			8.5
Weighted average discount rate:
Operating leases			3.0	%
Finance leases			4.9	%

Schedule of supplemental cash flow and other information


	Three months ended
(Millions)	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	75
Operating cash flows from finance leases		3
Financing cash flows from finance leases		—

Right of use assets obtained in exchange for lease liabilities:
Operating leases		48
Finance leases		9

Gain on sale leaseback transactions, net		—

Schedule of maturities of operating lease liabilities


	March 31, 2019
(Millions)	Finance Leases		Operating Leases
Remainder of 2019	$	17	$	209
2020		15		211
2021		11		137
2022		11		100
2023		11		71
After 2023		40		121
Total	$	105	$	849
Less: Amounts representing interest		(5)		(63)
Present value of future minimum lease payments		100		786
Less: Current obligations		16		255
Long-term obligations	$	84	$	531

Schedule of maturities of finance lease liabilities


	March 31, 2019
(Millions)	Finance Leases		Operating Leases
Remainder of 2019	$	17	$	209
2020		15		211
2021		11		137
2022		11		100
2023		11		71
After 2023		40		121
Total	$	105	$	849
Less: Amounts representing interest		(5)		(63)
Present value of future minimum lease payments		100		786
Less: Current obligations		16		255
Long-term obligations	$	84	$	531

Minimum lease payments under capital and operating leases with non-cancelable terms in excess of one year

Minimum lease payments under capital and operating leases with non-cancelable terms in excess of one year as of December 31, 2018, were as follows:


			Operating
(Millions)	Capital Leases		Leases
2019	$	18	$	283
2020		16		208
2021		14		153
2022		12		122
2023		12		92
After 2023		32		253
Total	$	104	$	1,111
Less: Amounts representing interest		12
Present value of future minimum lease payments		92
Less: Current obligations under capital leases		17
Long-term obligations under capital leases	$	75

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

Stock-Based Compensation

Stock-Based Compensation Expense


	Three months ended
	March 31,
(Millions)	2019		2018
Cost of sales	$	22	$	23
Selling, general and administrative expenses		82		109
Research, development and related expenses		26		27
Stock-based compensation expenses	$	130	$	159
Income tax benefits	$	(80)	$	(98)
Stock-based compensation expenses (benefits), net of tax	$	50	$	61

Stock Option Activity

Stock Option Program

The following table summarizes stock option activity during the three months ended March 31, 2019:


				Weighted
				Average
		Weighted		Remaining	Aggregate
	Number of	Average		Contractual	Intrinsic Value
(Options in thousands)	Options	Exercise Price		Life (months)	(millions)
Under option —
January 1	34,569	$	138.98
Granted:
Annual	3,423		201.12
Exercised	(1,983)		82.26
Forfeited	(9)		205.82
March 31	36,000	$	148.00	71	$	2,233
Options exercisable
March 31	28,703	$	133.67	61	$	2,154

Stock Option Assumptions


	Annual
	2019
Exercise price	$	201.12
Risk-free interest rate		2.6	%
Dividend yield		2.5	%
Expected volatility		20.4	%
Expected life (months)		79
Black-Scholes fair value	$	34.19

Restricted Stock and Restricted Stock Units Activity

Restricted Stock and Restricted Stock Units

The following table summarizes restricted stock and restricted stock unit activity during the three months ended March 31, 2019:



		Weighted
		Average
	Number of	Grant Date
(Shares in thousands)	Shares	Fair Value
Nonvested balance —
As of January 1	1,789	$	180.02
Granted
Annual	551		201.12
Other	1		199.63
Vested	(669)		147.90
Forfeited	(17)		169.34
As of March 31	1,655	$	200.17

Performance Shares Activity

The following table summarizes performance share activity during the three months ended March 31, 2019:



		Weighted
		Average
	Number of	Grant Date
(Shares in thousands)	Shares	Fair Value
Undistributed balance —
As of January 1	562	$	188.96
Granted	162		207.49
Distributed	(210)		162.16
Performance change	(125)		209.40
As of March 31	389	$	204.50

Business Segments (Tables)

3 Months Ended

Mar. 31, 2019

Business Segments

Business Segments

Business Segment Information


	Three months ended
	March 31,
(Millions)	2019		2018
Net Sales
Industrial	$	2,929	$	3,135
Safety and Graphics		1,704		1,779
Health Care		1,540		1,535
Electronics and Energy		1,190		1,350
Consumer		1,123		1,145
Corporate and Unallocated		21		—
Elimination of Dual Credit		(644)		(666)
Total Company	$	7,863	$	8,278

Operating Income
Industrial	$	585	$	714
Safety and Graphics		396		481
Health Care		432		458
Electronics and Energy		284		336
Consumer		219		220
Corporate and Unallocated		(624)		(1,037)
Elimination of Dual Credit		(156)		(165)
Total Company	$	1,136	$	1,007

Significant Accounting Policies - Basis of Presentation (Details) - segment	1 Months Ended	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2019
Significant Accounting Policies
Number of business segments	5	5

Significant Accounting Policies - Foreign Currency Translation (Details) - Subsidiary $ in Millions, $ in Millions, in Billions	3 Months Ended			12 Months Ended
	Mar. 31, 2019 VEF ( )	Sep. 30, 2018 item	Jun. 30, 2018	Dec. 31, 2018	Mar. 31, 2019 ARS ($)	Mar. 31, 2019 USD ($)
Venezuela
Foreign Currency Translation
Accumulated other comprehensive loss that 3M Company has recorded from its Venezuelan subsidiary						$ 145
Denominator used to determine conversion from Venezuelan Bolivar to Sovereign Bolivar. \| item		100,000
Foreign currency exchange rate	3,333				3,333	3,333
Argentina
Foreign Currency Translation
Threshold percentage used to determine if economic environment is highly inflationary			100.00%
Number of years used to determine if economic environment is highly inflationary	3 years
Foreign currency exchange rate	43				43	43
Maximum \| Venezuela
Foreign Currency Translation
Balance of the Company's overall net monetary assets valued functional currency \|	60
Maximum \| Argentina
Foreign Currency Translation
Operating income of subsidiaries as percent of consolidated amount high end of range				0.50%
Balance of the Company's overall net monetary assets valued functional currency					$ 190

Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings per share
Options outstanding not included in computation of diluted earnings per share (in shares)	5.2	1.9
Numerator:
Net income attributable to 3M	$ 891	$ 602
Denominator:
Denominator for weighted average 3M common shares outstanding - basic (in shares)	577.5	596.2
Dilution associated with the Company's stock-based compensation plans (in shares)	11.0	16.5
Denominator for weighted average 3M common shares outstanding - diluted (in shares)	588.5	612.7
Earnings per share attributable to 3M common shareholders - basic (in dollars per share)	$ 1.54	$ 1.01
Earnings per share attributable to 3M common shareholders - diluted (in dollars per share)	$ 1.51	$ 0.98

Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Millions	Jan. 01, 2019	Mar. 31, 2019	Jan. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle
Stockholders' equity		$ 9,703		$ 9,796
Retained earnings		41,159		40,636
Lease assets		797
Lease liabilities		786
ASU 2016-02 Leases
New Accounting Pronouncements or Change in Accounting Principle
Cumulative effect of new accounting principle in period of adoption		14
ASU 2016-02 Leases \| Adjustment
New Accounting Pronouncements or Change in Accounting Principle
Lease assets	$ 800		$ 800
Lease liabilities	800
Retained Earnings \| ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
New Accounting Pronouncements or Change in Accounting Principle
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect	900
Cumulative effect of new accounting principle in period of adoption		853
Retained Earnings \| ASU 2016-02 Leases
New Accounting Pronouncements or Change in Accounting Principle
Cumulative effect of new accounting principle in period of adoption		14
Retained Earnings \| ASU 2016-02 Leases \| Adjustment
New Accounting Pronouncements or Change in Accounting Principle
Stockholders' equity	14
Accumulated Other Comprehensive Income (Loss)
New Accounting Pronouncements or Change in Accounting Principle
Stockholders' equity		(7,552)		$ (6,866)	$ (6,803)	$ (7,026)
Accumulated Other Comprehensive Income (Loss) \| ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
New Accounting Pronouncements or Change in Accounting Principle
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect	$ 900
Cumulative effect of new accounting principle in period of adoption		(853)
Accumulated Other Comprehensive Income (Loss) \| ASU 2016-02 Leases
New Accounting Pronouncements or Change in Accounting Principle
Cumulative effect of new accounting principle in period of adoption		$ (853)

Revenue (Details) - USD ($) $ in Millions	3 Months Ended
Revenue (Details) - USD ($) $ in Millions	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition
Retained earnings	$ 41,159		$ 40,636
Contract Balance
Current deferred income balances	619		$ 617
Net Sales	7,863	$ 8,278
ASU 2014-09 Revenue from Contracts with Customers \| Difference between Revenue Guidance in Effect before and after Topic 606
Contract Balance
Net Sales	$ 370	$ 280

Revenue - Disaggregated Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue
Net Sales	$ 7,863	$ 8,278
Corporate and Unallocated
Disaggregation of Revenue
Net Sales	21
Elimination of Dual Credit
Disaggregation of Revenue
Net Sales	(644)	(666)
Industrial
Disaggregation of Revenue
Net Sales	2,929	3,135
Industrial \| Abrasives
Disaggregation of Revenue
Net Sales	433	473
Industrial \| Adhesives and Tapes
Disaggregation of Revenue
Net Sales	807	842
Industrial \| Advanced Materials
Disaggregation of Revenue
Net Sales	312	304
Industrial \| Automotive and Aerospace
Disaggregation of Revenue
Net Sales	500	556
Industrial \| Automotive Aftermarket
Disaggregation of Revenue
Net Sales	390	419
Industrial \| Closure and Masking Systems
Disaggregation of Revenue
Net Sales	278	307
Industrial \| Separation and Purification
Disaggregation of Revenue
Net Sales	214	235
Industrial \| Other Industrial
Disaggregation of Revenue
Net Sales	(5)	(1)
Safety and Graphics
Disaggregation of Revenue
Net Sales	1,704	1,779
Safety and Graphics \| Commercial Solutions
Disaggregation of Revenue
Net Sales	458	485
Safety and Graphics \| Personal Safety
Disaggregation of Revenue
Net Sales	939	957
Safety and Graphics \| Roofing Granules
Disaggregation of Revenue
Net Sales	92	101
Safety and Graphics \| Transportation Safety
Disaggregation of Revenue
Net Sales	217	237
Safety and Graphics \| Other Safety and Graphics
Disaggregation of Revenue
Net Sales	(2)	(1)
Health Care
Disaggregation of Revenue
Net Sales	1,540	1,535
Health Care \| Drug Delivery
Disaggregation of Revenue
Net Sales	92	119
Health Care \| Food Safety
Disaggregation of Revenue
Net Sales	83	81
Health Care \| Health Information Systems
Disaggregation of Revenue
Net Sales	260	205
Health Care \| Medical Solutions
Disaggregation of Revenue
Net Sales	764	777
Health Care \| Oral Care
Disaggregation of Revenue
Net Sales	341	354
Health Care \| Other Health Care
Disaggregation of Revenue
Net Sales		(1)
Electronics and Energy
Disaggregation of Revenue
Net Sales	1,190	1,350
Electronics and Energy \| Electronics
Disaggregation of Revenue
Net Sales	863	930
Electronics and Energy \| Energy
Disaggregation of Revenue
Net Sales	330	420
Electronics and Energy \| Other Electronics and Energy
Disaggregation of Revenue
Net Sales	(3)
Consumer
Disaggregation of Revenue
Net Sales	1,123	1,145
Consumer \| Consumer Health Care
Disaggregation of Revenue
Net Sales	98	102
Consumer \| Home Care
Disaggregation of Revenue
Net Sales	258	269
Consumer \| Home Improvement
Disaggregation of Revenue
Net Sales	462	458
Consumer \| Stationery and Office
Disaggregation of Revenue
Net Sales	294	303
Consumer \| Other Consumer
Disaggregation of Revenue
Net Sales	11	13
United States
Disaggregation of Revenue
Net Sales	3,046	3,044
United States \| Corporate and Unallocated
Disaggregation of Revenue
Net Sales	19	(1)
United States \| Elimination of Dual Credit
Disaggregation of Revenue
Net Sales	(249)	(248)
United States \| Industrial
Disaggregation of Revenue
Net Sales	1,082	1,100
United States \| Safety and Graphics
Disaggregation of Revenue
Net Sales	635	652
United States \| Health Care
Disaggregation of Revenue
Net Sales	725	702
United States \| Electronics and Energy
Disaggregation of Revenue
Net Sales	203	229
United States \| Consumer
Disaggregation of Revenue
Net Sales	631	610
Asia Pacific
Disaggregation of Revenue
Net Sales	2,478	2,676
Asia Pacific \| Corporate and Unallocated
Disaggregation of Revenue
Net Sales	2
Asia Pacific \| Elimination of Dual Credit
Disaggregation of Revenue
Net Sales	(227)	(248)
Asia Pacific \| Industrial
Disaggregation of Revenue
Net Sales	823	937
Asia Pacific \| Safety and Graphics
Disaggregation of Revenue
Net Sales	469	493
Asia Pacific \| Health Care
Disaggregation of Revenue
Net Sales	305	298
Asia Pacific \| Electronics and Energy
Disaggregation of Revenue
Net Sales	840	910
Asia Pacific \| Consumer
Disaggregation of Revenue
Net Sales	266	286
Europe, Middle East and Africa
Disaggregation of Revenue
Net Sales	1,624	1,792
Europe, Middle East and Africa \| Elimination of Dual Credit
Disaggregation of Revenue
Net Sales	(113)	(113)
Europe, Middle East and Africa \| Industrial
Disaggregation of Revenue
Net Sales	727	787
Europe, Middle East and Africa \| Safety and Graphics
Disaggregation of Revenue
Net Sales	408	436
Europe, Middle East and Africa \| Health Care
Disaggregation of Revenue
Net Sales	378	394
Europe, Middle East and Africa \| Electronics and Energy
Disaggregation of Revenue
Net Sales	94	145
Europe, Middle East and Africa \| Consumer
Disaggregation of Revenue
Net Sales	130	143
Latin America and Canada
Disaggregation of Revenue
Net Sales	717	767
Latin America and Canada \| Corporate and Unallocated
Disaggregation of Revenue
Net Sales	3
Latin America and Canada \| Elimination of Dual Credit
Disaggregation of Revenue
Net Sales	(55)	(57)
Latin America and Canada \| Industrial
Disaggregation of Revenue
Net Sales	297	312
Latin America and Canada \| Safety and Graphics
Disaggregation of Revenue
Net Sales	191	198
Latin America and Canada \| Health Care
Disaggregation of Revenue
Net Sales	132	141
Latin America and Canada \| Electronics and Energy
Disaggregation of Revenue
Net Sales	53	67
Latin America and Canada \| Consumer
Disaggregation of Revenue
Net Sales	96	106
Other Unallocated
Disaggregation of Revenue
Net Sales	(2)	(1)
Other Unallocated \| Corporate and Unallocated
Disaggregation of Revenue
Net Sales	(3)	1
Other Unallocated \| Industrial
Disaggregation of Revenue
Net Sales		(1)
Other Unallocated \| Safety and Graphics
Disaggregation of Revenue
Net Sales	$ 1
Other Unallocated \| Electronics and Energy
Disaggregation of Revenue
Net Sales		$ (1)

Acquisitions and Divestitures - Acquisitions (Details) $ in Millions	1 Months Ended	3 Months Ended
	Feb. 28, 2019 USD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)
Business Acquisitions Information
Purchased finite-lived intangible assets		$ 461
Purchased goodwill		580
Supplemental information:
Cash paid, net of cash acquired		704
Net sales		7,863	$ 8,278
Operating loss		$ (1,136)	$ (1,007)
Number of business combinations completed			0
Maximum
Business Acquisitions Information
Intangible assets useful life (in years)		15 years
Minimum
Business Acquisitions Information
Intangible assets useful life (in years)		6 years
Weighted average
Business Acquisitions Information
Intangible assets useful life (in years)		12 years
M*Modal
Business Acquisitions Information
Accounts receivable		$ 77
Other current assets		16
Property, plant and equipment		9
Purchased goodwill		580
Other assets		55
Accounts payable and other liabilities		(113)
Interest bearing debt		(251)
Deferred tax asset/(liability)		(130)
Net assets acquired		704
Supplemental information:
Cash paid	$ 700	708
Less: Cash acquired		4
Cash paid, net of cash acquired		704
Assumed debt	$ 300
Net sales		50
Operating loss		20
M*Modal \| Customer related intangible assets
Business Acquisitions Information
Purchased finite-lived intangible assets		$ 290
Intangible assets useful life (in years)		15 years
M*Modal \| Definite-lived tradenames
Business Acquisitions Information
Purchased finite-lived intangible assets		$ 11
Intangible assets useful life (in years)		6 years
M*Modal \| Other amortizable intangible assets
Business Acquisitions Information
Purchased finite-lived intangible assets		$ 160
Intangible assets useful life (in years)		6 years

Acquisitions and Divestitures - Divestitures (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Discontinued Operations and Disposal Groups [Abstract]
Aggregate operating income of divested businesses	$ 10

Goodwill and Intangible Assets (Goodwill balance by business segment) (Details)	3 Months Ended
	Mar. 31, 2019 USD ($)	Mar. 31, 2018
Goodwill Information
Number of business combinations completed		0
Purchased goodwill from acquisitions	$ 580,000,000
Goodwill acquired during the period which is deductible for tax purposes	0
Goodwill
Balance at the beginning of the period	10,051,000,000
Acquisition activity	580,000,000
Translation and other	(20,000,000)
Balance at the end of the period	10,611,000,000
Amount of Goodwill impairment	0
Industrial
Goodwill
Balance at the beginning of the period	2,614,000,000
Translation and other	(28,000,000)
Balance at the end of the period	2,586,000,000
Safety and Graphics
Goodwill
Balance at the beginning of the period	4,325,000,000
Translation and other	(4,000,000)
Balance at the end of the period	4,321,000,000
Health Care
Goodwill
Balance at the beginning of the period	1,654,000,000
Acquisition activity	580,000,000
Translation and other	(11,000,000)
Balance at the end of the period	2,223,000,000
Electronics and Energy
Goodwill
Balance at the beginning of the period	1,250,000,000
Translation and other	(7,000,000)
Balance at the end of the period	1,243,000,000
Consumer
Goodwill
Balance at the beginning of the period	208,000,000
Translation and other	30,000,000
Balance at the end of the period	$ 238,000,000

Goodwill and Intangible Assets (Acquired Intangible Assets) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Acquired intangible assets disclosures
Total gross carrying amount	$ 4,653	$ 4,198
Total accumulated amortization	(2,245)	(2,182)
Total finite-lived intangible assets - net	2,408	2,016
Non-amortizable intangible assets (primarily tradenames)	639	641
Total intangible assets - net	$ 3,047	2,657
Indefinite lived tradenames years in existence	55 years
Customer related intangible assets
Acquired intangible assets disclosures
Total gross carrying amount	$ 2,577	2,291
Total accumulated amortization	(1,034)	(998)
Patents
Acquired intangible assets disclosures
Total gross carrying amount	539	542
Total accumulated amortization	(489)	(487)
Other technology-based intangible assets
Acquired intangible assets disclosures
Total gross carrying amount	738	576
Total accumulated amortization	(350)	(333)
Definite-lived tradenames
Acquired intangible assets disclosures
Total gross carrying amount	674	664
Total accumulated amortization	(284)	(276)
Other amortizable intangible assets
Acquired intangible assets disclosures
Total gross carrying amount	125	125
Total accumulated amortization	$ (88)	$ (88)

Goodwill and Intangible Assets (Schedules for Amortization Expense) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Finite Lived Intangible Asset
Amortization expense for acquired intangible assets	$ 69	$ 64
Expected amortization expense for acquired intangible assets recorded as of balance sheet date
Remainder of 2019	215
2020	276
2021	267
2022	252
2023	222
2024	196
After 2024	$ 980

Restructuring Actions and Exit Activities (Details) - 2018 Restructuring Actions $ in Millions	3 Months Ended
	Dec. 31, 2018 USD ($)	Jun. 30, 2018 USD ($) individual
Restructuring Cost and Reserve
Restructuring charges	$ 32	$ 105
Pre-tax charge related to exit activities	22
Adjustments for reductions in cost estimates	10
Cost of sales
Restructuring Cost and Reserve
Restructuring charges	15	12
Selling, general and administrative expenses
Restructuring Cost and Reserve
Restructuring charges	16	89
Research, development and related expenses
Restructuring Cost and Reserve
Restructuring charges	$ 1	$ 4
Corporate and Unallocated
Restructuring Cost and Reserve
Restructuring and related cost, number of positions affected \| individual		1,200
Restructuring charges		$ 105

Restructuring Actions and Exit Activities - Roll Forward (Details) - 2018 Restructuring Actions - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Restructuring Reserve Roll Forward
Restructuring actions balances, Beginning Balance	$ 84	$ 137
Non-cash changes		(12)
Cash payments	(13)	(24)
Adjustments	(1)	(17)
Restructuring actions balances, Ending Balance	70	84
Employee-Related
Restructuring Reserve Roll Forward
Restructuring actions balances, Beginning Balance	84	125
Cash payments	(13)	(24)
Adjustments	(1)	(17)
Restructuring actions balances, Ending Balance	70	84
Asset-Related
Restructuring Reserve Roll Forward
Restructuring actions balances, Beginning Balance		12
Non-cash changes		$ (12)
Adjustments

Supplemental Income Statement Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Supplemental Income Statement Information
Interest expense	$ 104	$ 82
Interest income	(20)	(21)
Pension and postretirement net periodic benefit cost (benefit)	(36)	(19)
Total	$ 48	$ 42

Supplemental Equity and Comprehensive Income Information - Dividends (Details) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Supplemental Equity and Comprehensive Income Information
Dividends declared in current period (in dollars per share)	$ 1.44	$ 1.36

Supplemental Equity and Comprehensive Income Information - SE Rf (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Increase (decrease) in equity
Balance at the beginning of the period	$ 9,848	$ 11,622
Net income	893	606
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment	77	167
Defined benefit pension and postretirement plans adjustment	84	116
Cash flow hedging instruments	6	(61)
Total other comprehensive income (loss), net of tax	167	222
Dividends declared	(830)	(810)
Stock-based compensation	112	144
Reacquired stock	(666)	(972)
Issuances pursuant to stock option and benefit plans	219	227
Balance at the end of the period	9,757	11,039
ASU 2016-02 Leases
Increase (decrease) in equity
Impact of ASUs	14
Common Stock and Additional Paid-in Capital
Increase (decrease) in equity
Balance at the beginning of the period	5,652	5,361
Other comprehensive income (loss), net of tax:
Stock-based compensation	112	144
Balance at the end of the period	5,764	5,505
Retained Earnings
Increase (decrease) in equity
Balance at the beginning of the period	40,636	39,115
Net income	891	602
Other comprehensive income (loss), net of tax:
Dividends declared	(830)	(810)
Issuances pursuant to stock option and benefit plans	(405)	(454)
Balance at the end of the period	41,159	38,453
Retained Earnings \| ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
Increase (decrease) in equity
Impact of ASUs	853
Retained Earnings \| ASU 2016-02 Leases
Increase (decrease) in equity
Impact of ASUs	14
Treasury Stock
Increase (decrease) in equity
Balance at the beginning of the period	(29,626)	(25,887)
Other comprehensive income (loss), net of tax:
Reacquired stock	(666)	(972)
Issuances pursuant to stock option and benefit plans	624	681
Balance at the end of the period	(29,668)	(26,178)
Accumulated Other Comprehensive Income (Loss)
Increase (decrease) in equity
Balance at the beginning of the period	(6,866)	(7,026)
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment	77	168
Defined benefit pension and postretirement plans adjustment	84	116
Cash flow hedging instruments	6	(61)
Balance at the end of the period	(7,552)	(6,803)
Accumulated Other Comprehensive Income (Loss) \| ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
Increase (decrease) in equity
Impact of ASUs	(853)
Accumulated Other Comprehensive Income (Loss) \| ASU 2016-02 Leases
Increase (decrease) in equity
Impact of ASUs	(853)
Noncontrolling Interest
Increase (decrease) in equity
Balance at the beginning of the period	52	59
Net income	2	4
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment		(1)
Balance at the end of the period	$ 54	$ 62

Supplemental Equity and Comprehensive Income Information - AOCI rf (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
AOCI Attributable to 3M, Net of Tax Roll Forward
Stockholders' Equity Attributable to 3M, Beginning Balance	$ 9,796
Other comprehensive income (loss), before tax:
Stockholders' Equity Attributable to 3M, Ending Balance	9,703
ASU 2016-02 Leases
AOCI Attributable to 3M, Net of Tax Roll Forward
Impact of ASUs	14
Other comprehensive income (loss), before tax:
Impact of ASUs	14
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to 3M, Net of Tax Roll Forward
Stockholders' Equity Attributable to 3M, Beginning Balance	(6,866)	$ (7,026)
Other comprehensive income (loss), before tax:
Amounts before reclassifications	116	47
Amounts reclassified out	97	185
Total other comprehensive income (loss), before tax	213	232
Tax effect	(46)	(9)
Total other comprehensive income (loss), net of tax	167	223
Stockholders' Equity Attributable to 3M, Ending Balance	(7,552)	(6,803)
Accumulated Other Comprehensive Income (Loss) \| ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
AOCI Attributable to 3M, Net of Tax Roll Forward
Impact of ASUs	(853)
Other comprehensive income (loss), before tax:
Impact of ASUs	(853)
Accumulated Other Comprehensive Income (Loss) \| ASU 2016-02 Leases
AOCI Attributable to 3M, Net of Tax Roll Forward
Impact of ASUs	(853)
Other comprehensive income (loss), before tax:
Impact of ASUs	(853)
Cumulative Translation Adjustment
AOCI Attributable to 3M, Net of Tax Roll Forward
Stockholders' Equity Attributable to 3M, Beginning Balance	(2,098)	(1,638)
Other comprehensive income (loss), before tax:
Amounts before reclassifications	103	129
Total other comprehensive income (loss), before tax	103	129
Tax effect	(26)	39
Total other comprehensive income (loss), net of tax	77	168
Stockholders' Equity Attributable to 3M, Ending Balance	(2,034)	(1,470)
Cumulative Translation Adjustment \| ASU 2016-02 Leases
AOCI Attributable to 3M, Net of Tax Roll Forward
Impact of ASUs	(13)
Other comprehensive income (loss), before tax:
Impact of ASUs	(13)
Gains (losses) associated with defined benefit pension and postretirement plans amortization
AOCI Attributable to 3M, Net of Tax Roll Forward
Stockholders' Equity Attributable to 3M, Beginning Balance	(4,832)	(5,276)
Other comprehensive income (loss), before tax:
Amounts reclassified out	104	151
Total other comprehensive income (loss), before tax	104	151
Tax effect	(20)	(35)
Total other comprehensive income (loss), net of tax	84	116
Stockholders' Equity Attributable to 3M, Ending Balance	(5,565)	(5,160)
Gains (losses) associated with defined benefit pension and postretirement plans amortization \| ASU 2016-02 Leases
AOCI Attributable to 3M, Net of Tax Roll Forward
Impact of ASUs	(817)
Other comprehensive income (loss), before tax:
Impact of ASUs	(817)
Cash flow hedging instruments gains (losses)
AOCI Attributable to 3M, Net of Tax Roll Forward
Stockholders' Equity Attributable to 3M, Beginning Balance	64	(112)
Other comprehensive income (loss), before tax:
Amounts before reclassifications	13	(82)
Amounts reclassified out	(7)	34
Total other comprehensive income (loss), before tax	6	(48)
Tax effect		(13)
Total other comprehensive income (loss), net of tax	6	(61)
Stockholders' Equity Attributable to 3M, Ending Balance	47	$ (173)
Cash flow hedging instruments gains (losses) \| ASU 2016-02 Leases
AOCI Attributable to 3M, Net of Tax Roll Forward
Impact of ASUs	(23)
Other comprehensive income (loss), before tax:
Impact of ASUs	$ (23)

Supplemental Equity and Comprehensive Income Information - Reclass AOCI (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Amount Reclassified from Accumulated Other Comprehensive Income
Net of tax	$ (78)	$ (142)
Gains (losses) associated with defined benefit pension and postretirement plans amortization
Amount Reclassified from Accumulated Other Comprehensive Income
Prior service benefit	16	19
Net actuarial loss	(120)	(170)
Total before tax	(104)	(151)
Tax effect	20	35
Net of tax	(84)	(116)
Cash flow hedging instruments gains (losses)
Amount Reclassified from Accumulated Other Comprehensive Income
Total before tax	7	(34)
Tax effect	(1)	8
Net of tax	6	(26)
Cash flow hedging instruments gains (losses) \| Foreign currency forward/option contracts
Amount Reclassified from Accumulated Other Comprehensive Income
Cost of sales	$ 7	$ (34)

Income Taxes - Tax Effected Operating Loss, Capital Loss, and Tax Credit Carryovers (Details) - USD ($) $ in Millions		3 Months Ended		12 Months Ended
	Jan. 01, 2019	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Income tax
Net UTB impacting the effective tax rate		$ 679		$ 655
Interest and penalties related to unrecognized tax benefits, expense (benefit) recognized on a gross basis		6	$ 9
Interest and penalties related to unrecognized tax benefits, accrued on a gross basis		75		69
Deferred tax assets valuation allowance		$ 84		$ 67
Effective tax rate (as a percent)		17.90%	37.20%
Increase (decrease) in effective income tax rate from prior reporting period to current reporting period (as a percent)		(19.30%)
Statutory U.S. tax rate				21.00%	35.00%
Tax Cuts and Jobs Act of 2017 measurement period adjustment			$ 217
Retained Earnings \| ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
Income tax
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect	$ 900
Accumulated Other Comprehensive Income (Loss) \| ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
Income tax
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect	$ 900

Marketable Securities (current and non-current) (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Marketable securities
Current marketable securities	$ 539	$ 380
Non-current marketable securities	46	37
Total marketable securities	585	417
Corporate debt securities
Marketable securities
Current marketable securities	16
Commercial paper
Marketable securities
Current marketable securities	510	366
Certificates of deposit/time deposits
Marketable securities
Current marketable securities	10	10
U.S. municipal securities
Marketable securities
Current marketable securities	3	3
Non-current marketable securities	$ 46	37
Asset-backed securities
Marketable securities
Current marketable securities		$ 1

Marketable Securities (Contractual maturity) (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Marketable securities by contractual maturity
Due in one year or less	$ 539
Due after one year through five years	13
Due after five years through ten years	24
Due after ten years	9
Total marketable securities	$ 585	$ 417

Long-Term Debt and Short-Term Borrowings - Long-Term Debt Issuances (Details) $ in Millions	1 Months Ended
	Feb. 28, 2019 USD ($)
Fixed rate medium term note due 2022
Debt instrument
Principal amount	$ 450
Term of debt instrument	3 years
Interest rate - effective	2.75%
Fixed rate medium term notes due 2024
Debt instrument
Principal amount	$ 500
Term of debt instrument	5 years
Interest rate - effective	3.25%
Fixed rate medium term notes due 2029
Debt instrument
Principal amount	$ 800
Term of debt instrument	10 years
Interest rate - effective	3.375%
Fixed rate medium term note due 2048
Debt instrument
Principal amount	$ 500
Term of debt instrument	29 years 6 months
Interest rate - effective	4.00%

Long-Term Debt and Short-Term Borrowings - Short-Term Borrowings and Current Portion of Long-Term Debt (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Long-Term Debt
Total long-term debt	$ 16,328,000,000
Short-Term Borrowings and Current Portion of Long-Term Debt
Short-term borrowings and current portion of long-term debt	790,000,000	$ 1,211,000,000
Commercial paper
Short-Term Borrowings and Current Portion of Long-Term Debt
Short-term borrowings and current portion of long-term debt	$ 0	$ 435,000,000

Long-Term Debt and Short-Term Borrowings - Future Maturities of Long-term Debt (Details) $ in Millions	Mar. 31, 2019 USD ($)
Maturities of long-term debt
Remainder of 2019	$ 747
2020	1,318
2021	1,686
2022	1,603
2023	1,315
2024	1,102
After 2024	8,557
Total long-term debt	$ 16,328

Pension and Postretirement Benefit Plans - Narrative (Details) - Funded - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2019
Qualified and Non-qualified Pension Benefits
Benefit Plan Information
Company contributions year to date	$ 46
Postretirement Benefits
Benefit Plan Information
Company contributions year to date	$ 1
Forecast \| Qualified and Non-qualified Pension Benefits \| Maximum
Benefit Plan Information
Estimated pension and postretirement employer contributions in current fiscal year		$ 200

Pension and Postretirement Benefit Plans - Components of net periodic benefit cost and other information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net periodic benefit cost (benefit)
Net periodic benefit cost (benefit)	$ (36)	$ (19)
Funded \| Postretirement Benefits
Net periodic benefit cost (benefit)
Service cost	11	13
Interest cost	21	20
Expected return on plan assets	(20)	(21)
Amortization of prior service benefit	(7)	(10)
Amortization of net actuarial loss	9	15
Total non-operating expense (benefit)	3	4
Net periodic benefit cost (benefit)	14	17
Funded \| United States \| Qualified and Non-qualified Pension Benefits
Net periodic benefit cost (benefit)
Service cost	62	72
Interest cost	155	141
Expected return on plan assets	(260)	(272)
Amortization of prior service benefit	(6)	(6)
Amortization of net actuarial loss	91	126
Total non-operating expense (benefit)	(20)	(11)
Net periodic benefit cost (benefit)	42	61
Funded \| International \| Qualified and Non-qualified Pension Benefits
Net periodic benefit cost (benefit)
Service cost	33	36
Interest cost	39	40
Expected return on plan assets	(75)	(78)
Amortization of prior service benefit	(3)	(3)
Amortization of net actuarial loss	20	29
Total non-operating expense (benefit)	(19)	(12)
Net periodic benefit cost (benefit)	$ 14	$ 24

Derivatives - Cash Flow Hedges (Details) - Cash flow hedge - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Feb. 28, 2019	Mar. 31, 2019	Dec. 31, 2018
Derivatives in Cash Flow Hedging Relationships
Accumulated other comprehensive income (loss), unrealized gain (loss) on cash flow hedges		$ 47
After-tax net unrealized gain (loss) anticipated to be reclassified from AOCI to the income statement within next twelve months		40
After-tax net unrealized gain (loss) anticipated to be reclassified from AOCI to the Income Statement over remaining fiscal year		37
After-tax net unrealized gain (loss) anticipated to be reclassifed from AOCI to the Income Statement over next fiscal year		22
After-tax unrealized gain (loss) anticipated to be reclassified from AOCI to the Income Statement after the next fiscal year		$ (12)
Foreign currency forward/option contracts
Derivatives in Cash Flow Hedging Relationships
Maximum length of time hedged in cash flow hedge		36 months
Interest rate swap contracts
Derivatives in Cash Flow Hedging Relationships
Accumulated other comprehensive income (loss), unrealized gain (loss) on cash flow hedges		$ (15)
Derivative notional amount			$ 700
Additional derivative notional		$ 200
Termination Of Derivative	$ 550

Derivatives - Cash Flow Hedges - Gain (Loss) in OCI or Reclassified from AOCI (Details) - Cash flow hedge $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Derivatives in Cash Flow Hedging Relationships
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative	$ 13
Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	7
Foreign currency forward/option contracts \| Cost of sales
Derivatives in Cash Flow Hedging Relationships
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative	30
Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	7
Interest rate swap contracts \| Interest expense.
Derivatives in Cash Flow Hedging Relationships
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Derivative	$ (17)

Derivatives - Cash Flow Hedges - Effective and Ineffective Portions (Details) - Cash flow hedge $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Derivatives in Cash Flow Hedging Relationships
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Effective Portion of Derivative	$ (82)
Pretax Gain (Loss) Recognized in Income on Effective Portion of Derivative as a Result of Reclassification from Accumulated Other Comprehensive Income	(34)
Foreign currency forward/option contracts
Derivatives in Cash Flow Hedging Relationships
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Effective Portion of Derivative	(79)
Foreign currency forward/option contracts \| Cost of sales
Derivatives in Cash Flow Hedging Relationships
Pretax Gain (Loss) Recognized in Income on Effective Portion of Derivative as a Result of Reclassification from Accumulated Other Comprehensive Income	(34)
Interest rate swap contracts
Derivatives in Cash Flow Hedging Relationships
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Effective Portion of Derivative	$ (3)

Derivatives - Fair Value Hedges (Details) - Fair value hedges $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Derivatives in Fair Value Hedging Relationships
Gain (Loss) on Derivative Recognized in Income	$ (11)
Gain (Loss) on Hedged Item Recognized in Income	11
Interest rate swap contracts \| Interest expense.
Derivatives in Fair Value Hedging Relationships
Gain (Loss) on Derivative Recognized in Income	(11)
Gain (Loss) on Hedged Item Recognized in Income	$ 11

Derivatives - Cumulative Basis Adjustment for Fair Value Hedges (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Hedged Liability, Fair Value Hedge	$ 1,870	$ 1,872
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease)	19	14
Short-term borrowings and current portion of long-term debt
Derivatives, Fair Value [Line Items]
Hedged Liability, Fair Value Hedge	598	596
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease)	(1)	(4)
Long-term debt
Derivatives, Fair Value [Line Items]
Hedged Liability, Fair Value Hedge	1,272	1,276
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease)	$ 20	$ 18

Derivatives - Net Investment Hedges (Details) - Net Investment Hedges € in Millions, $ in Millions, ₩ in Billions	3 Months Ended
	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2019 KRW (₩)	Mar. 31, 2019 EUR (€)
Net investment hedges
Effective portion of net investment hedge reclassified out of other comprehensive income into income	$ 0	$ 0
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income on Effective Portion of Instrument	107	(134)
Ineffective Portion of Gain (Loss) on Instrument and Amount Excluded from Effectiveness Testing Recognized in Income		(3)
Amount Excluded from Effectiveness Testing Recognized in Income	5
Foreign currency forward contracts
Net investment hedges
Derivative notional amount			₩ 248	€ 530
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income on Effective Portion of Instrument	15	(6)
Foreign currency forward contracts \| Cost of sales
Net investment hedges
Ineffective Portion of Gain (Loss) on Instrument and Amount Excluded from Effectiveness Testing Recognized in Income		(1)
Amount Excluded from Effectiveness Testing Recognized in Income	5
Foreign Currency Denominated Debt
Net investment hedges
Face amount of debt designated as a net investment hedge \| €				€ 4,100
Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income on Effective Portion of Instrument	$ 92	(128)
Ineffective Portion of Gain (Loss) on Instrument and Amount Excluded from Effectiveness Testing Recognized in Income		$ (2)

Derivatives - Not Designated (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Derivatives not designated as hedging instruments
Gain (Loss) on Derivative Recognized in Income	$ (10)	$ 20
Foreign currency forward/option contracts \| Cost of sales
Derivatives not designated as hedging instruments
Gain (Loss) on Derivative Recognized in Income	(2)	(3)
Foreign currency forward contracts \| Interest expense.
Derivatives not designated as hedging instruments
Gain (Loss) on Derivative Recognized in Income	$ (8)	$ 23

Derivatives - Statement of Income Location and Impact of Cash Flow (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cost of sales
Derivatives in Fair Value Hedging Relationships
Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of cash flow or fair value hedges are recorded	$ 4,310
Other expense (income), net
Derivatives in Fair Value Hedging Relationships
Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of cash flow or fair value hedges are recorded	48
Cash flow hedge
Gain or (loss) on cash flow hedging relationships:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	7
Cash flow hedge \| Foreign currency forward/option contracts \| Cost of sales
Gain or (loss) on cash flow hedging relationships:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	7
Fair value hedges
Gain or (loss) on fair value hedging relationships:
Hedged items		$ (11)
Fair value hedges \| Interest rate swap contracts \| Other expense (income), net
Gain or (loss) on fair value hedging relationships:
Hedged items	(5)
Fair value hedges \| Derivatives designated as hedging instruments \| Interest rate swap contracts \| Other expense (income), net
Gain or (loss) on fair value hedging relationships:
Derivatives designated as hedging instruments	$ 5

Derivatives - BS Location (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Location and Fair Value Amount of Derivative Instruments
Fair Value of Derivative Instruments, Assets	$ 171	$ 146
Fair Value of Derivative Instruments, Liabilities	56	53
Derivatives designated as hedging instruments
Location and Fair Value Amount of Derivative Instruments
Fair Value of Derivative Instruments, Assets	160	132
Fair Value of Derivative Instruments, Liabilities	44	47
Derivatives designated as hedging instruments \| Foreign currency forward/option contracts \| Other current assets
Location and Fair Value Amount of Derivative Instruments
Fair Value of Derivative Instruments, Assets	88	74
Derivatives designated as hedging instruments \| Foreign currency forward/option contracts \| Other assets
Location and Fair Value Amount of Derivative Instruments
Fair Value of Derivative Instruments, Assets	53	39
Derivatives designated as hedging instruments \| Foreign currency forward/option contracts \| Other current liabilities
Location and Fair Value Amount of Derivative Instruments
Fair Value of Derivative Instruments, Liabilities	11	12
Derivatives designated as hedging instruments \| Foreign currency forward/option contracts \| Other liabilities
Location and Fair Value Amount of Derivative Instruments
Fair Value of Derivative Instruments, Liabilities	1	4
Derivatives designated as hedging instruments \| Foreign currency forward/option contracts \| Current balance sheet location
Location and Fair Value Amount of Derivative Instruments
Derivative Notional Amount	2,742	2,277
Derivatives designated as hedging instruments \| Foreign currency forward/option contracts \| Noncurrent balance sheet location
Location and Fair Value Amount of Derivative Instruments
Derivative Notional Amount	1,100	1,099
Derivatives designated as hedging instruments \| Interest rate swap contracts \| Other assets
Location and Fair Value Amount of Derivative Instruments
Fair Value of Derivative Instruments, Assets	19	19
Derivatives designated as hedging instruments \| Interest rate swap contracts \| Other current liabilities
Location and Fair Value Amount of Derivative Instruments
Fair Value of Derivative Instruments, Liabilities	1	14
Derivatives designated as hedging instruments \| Interest rate swap contracts \| Other liabilities
Location and Fair Value Amount of Derivative Instruments
Fair Value of Derivative Instruments, Liabilities	31	17
Derivatives designated as hedging instruments \| Interest rate swap contracts \| Current balance sheet location
Location and Fair Value Amount of Derivative Instruments
Derivative Notional Amount	600	1,000
Derivatives designated as hedging instruments \| Interest rate swap contracts \| Noncurrent balance sheet location
Location and Fair Value Amount of Derivative Instruments
Derivative Notional Amount	1,453	1,403
Derivatives not designated as hedging instruments
Location and Fair Value Amount of Derivative Instruments
Fair Value of Derivative Instruments, Assets	11	14
Fair Value of Derivative Instruments, Liabilities	12	6
Derivatives not designated as hedging instruments \| Foreign currency forward/option contracts \| Other current assets
Location and Fair Value Amount of Derivative Instruments
Fair Value of Derivative Instruments, Assets	11	14
Derivatives not designated as hedging instruments \| Foreign currency forward/option contracts \| Other current liabilities
Location and Fair Value Amount of Derivative Instruments
Fair Value of Derivative Instruments, Liabilities	12	6
Derivatives not designated as hedging instruments \| Foreign currency forward/option contracts \| Current balance sheet location
Location and Fair Value Amount of Derivative Instruments
Derivative Notional Amount	$ 2,925	$ 2,484

Derivatives - Offsetting Assets (Details) $ in Millions	3 Months Ended
Derivatives - Offsetting Assets (Details) $ in Millions	Mar. 31, 2019 USD ($) Counterparty	Dec. 31, 2018 USD ($)
Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties
Number of master netting agreements supported by primary counterparty's parent guarantee \| Counterparty	17
Number of credit support agreements by primary counterparty \| Counterparty	16
Gross Amounts of Derivative Assets Presented in the Consolidated Balance Sheet	$ 171	$ 146
Net Amount of Derivative Assets	132	108
Derivatives subject to master netting agreements
Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties
Gross Amounts of Derivative Assets Presented in the Consolidated Balance Sheet	171	146
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities	39	38
Net Amount of Derivative Assets	$ 132	$ 108

Derivatives - Offsetting Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties
Gross Amounts of Derivative Liabilities Presented in the Consolidated Balance Sheet	$ 56	$ 53
Net Amount of Derivative Liabilities	17	15
Derivatives subject to master netting agreements
Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties
Gross Amounts of Derivative Liabilities Presented in the Consolidated Balance Sheet	56	53
Gross Amount of Eligible Offsetting Recognized Derivative Assets	39	38
Net Amount of Derivative Liabilities	$ 17	$ 15

Derivatives - Currency Effects (Details) $ in Millions	3 Months Ended
Derivatives - Currency Effects (Details) $ in Millions	Mar. 31, 2019 USD ($)
Foreign Currency
Year-on-year foreign currency transaction effects, including hedging impact, gain (loss) impact on pre-tax income	$ 90

Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Assets and Liabilities Measured on Recurring Basis
Available-for-sale marketable securities	$ 585	$ 417
Gross Amounts of Derivative Assets Presented in the Consolidated Balance Sheet	171	146
Gross Amounts of Derivative Liabilities Presented in the Consolidated Balance Sheet	56	53
Fair value on a recurring basis \| Foreign currency forward/option contracts
Assets and Liabilities Measured on Recurring Basis
Gross Amounts of Derivative Assets Presented in the Consolidated Balance Sheet	152	127
Gross Amounts of Derivative Liabilities Presented in the Consolidated Balance Sheet	24	22
Fair value on a recurring basis \| Interest rate swap contracts
Assets and Liabilities Measured on Recurring Basis
Gross Amounts of Derivative Assets Presented in the Consolidated Balance Sheet	19	19
Gross Amounts of Derivative Liabilities Presented in the Consolidated Balance Sheet	32	31
Fair value on a recurring basis \| Corporate debt securities
Assets and Liabilities Measured on Recurring Basis
Available-for-sale marketable securities	16
Fair value on a recurring basis \| Commercial paper
Assets and Liabilities Measured on Recurring Basis
Available-for-sale marketable securities	510	366
Fair value on a recurring basis \| Certificates of deposit/time deposits
Assets and Liabilities Measured on Recurring Basis
Available-for-sale marketable securities	10	10
Fair value on a recurring basis \| Asset-backed securities
Assets and Liabilities Measured on Recurring Basis
Available-for-sale marketable securities		1
Fair value on a recurring basis \| U.S. municipal securities
Assets and Liabilities Measured on Recurring Basis
Available-for-sale marketable securities	49	40
Fair value on a recurring basis \| Level 2 \| Foreign currency forward/option contracts
Assets and Liabilities Measured on Recurring Basis
Gross Amounts of Derivative Assets Presented in the Consolidated Balance Sheet	152	127
Gross Amounts of Derivative Liabilities Presented in the Consolidated Balance Sheet	24	22
Fair value on a recurring basis \| Level 2 \| Interest rate swap contracts
Assets and Liabilities Measured on Recurring Basis
Gross Amounts of Derivative Assets Presented in the Consolidated Balance Sheet	19	19
Gross Amounts of Derivative Liabilities Presented in the Consolidated Balance Sheet	32	31
Fair value on a recurring basis \| Level 2 \| Corporate debt securities
Assets and Liabilities Measured on Recurring Basis
Available-for-sale marketable securities	16
Fair value on a recurring basis \| Level 2 \| Commercial paper
Assets and Liabilities Measured on Recurring Basis
Available-for-sale marketable securities	510	366
Fair value on a recurring basis \| Level 2 \| Certificates of deposit/time deposits
Assets and Liabilities Measured on Recurring Basis
Available-for-sale marketable securities	10	10
Fair value on a recurring basis \| Level 2 \| Asset-backed securities
Assets and Liabilities Measured on Recurring Basis
Available-for-sale marketable securities		1
Fair value on a recurring basis \| Level 3 \| U.S. municipal securities
Assets and Liabilities Measured on Recurring Basis
Available-for-sale marketable securities	$ 49	$ 40

Fair Value Measurements - Recurring Reconciliation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Reconciliation of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3)
Balance at the beginning of the period	$ 40	$ 30
Total gains or losses included in earnings	0	0
Total gains or losses included in other comprehensive income	0	0
Purchases and issuances	9	0
Sales and settlements	0	0
Transfers in and/or out of Level 3	0	0
Balance at the end of the period	$ 49	$ 30

Fair Value Measurements - Nonrecurring (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Fair Value Measurements
Long-lived asset impairment charges	$ 0	$ 0

Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Carrying Value
Financial Instruments
Long-term debt, excluding current portion - Fair Value	$ 15,580	$ 13,411
Fair Value
Financial Instruments
Long-term debt, excluding current portion - Fair Value	$ 16,132	$ 13,586

Commitments and Contingencies - Respirator and Environmental (Details)	3 Months Ended										12 Months Ended
	Mar. 31, 2019 USD ($)	Mar. 31, 2019 USD ($) defendant	Mar. 31, 2019 USD ($) individual	Mar. 31, 2019 USD ($) facility	Mar. 31, 2019 USD ($) lawsuit	Mar. 31, 2019 USD ($) case	Mar. 31, 2019 USD ($) $ / shares	Mar. 31, 2019 USD ($) item	Mar. 31, 2019 USD ($)	Mar. 31, 2018 $ / shares	Dec. 31, 2018 item
Loss contingencies
Diluted earnings per share \| $ / shares							$ 1.51			$ 0.98
Respirator Mask/Asbestos Litigation
Loss contingencies
Total number of named claimants \| item								2,335			2,320
Number of years company has been the defendant in Respirator Mask/Asbestos Litigation	20 years
Number of total claims the Company prevailed after being taken to trial					2	14
Number of total claims taken to trial \| case						15
Increase in liabilities, gross									$ 313,000,000
Increase in liabilities, net									238,000,000
Diluted earnings per share \| $ / shares							$ 0.40
Payments for fees and settlements related to litigation									32,000,000
Insurance receivables	$ 4,000,000	$ 4,000,000	$ 4,000,000	$ 4,000,000	$ 4,000,000	$ 4,000,000	$ 4,000,000	$ 4,000,000	4,000,000
Respirator Mask/Asbestos Litigation \| State court of California
Loss contingencies
Number of total claims the Company prevailed after being taken to trial \| lawsuit					1
Respirator Mask/Asbestos Litigation \| State court of Kentucky
Loss contingencies
Number of unnamed defendant \| individual			2
Litigation settlement awarded									2,000,000
Amount of punitive damages awarded									63,000,000
Settlement amount paid									65,000,000
Respirator Mask/Asbestos Litigation \| Kentucky and West Virginia
Loss contingencies
Settlement amount paid									340,000,000
Respirator Mask/Asbestos Litigation - State of West Virginia
Loss contingencies
Number of additional defendants	2
Accrued loss contingency reserve	$ 0	0	$ 0	0	$ 0	0	0	0	0
Respirator Mask/Asbestos litigation - Excluding Aearo Technologies
Loss contingencies
Accrued loss contingency reserve	954,000,000	954,000,000	954,000,000	954,000,000	954,000,000	954,000,000	954,000,000	954,000,000	954,000,000
Increase (decrease) accrued loss contingency reserve									281,000,000
Respirator Mask/Asbestos Litigation - Aearo Technologies
Loss contingencies
Accrued loss contingency reserve	28,000,000	28,000,000	28,000,000	28,000,000	28,000,000	28,000,000	28,000,000	28,000,000	28,000,000
Quarterly fee paid to Cabot to retain responsibility and liability for products manufactured before July 11, 1995									100,000
Environmental Matters - Remediation
Loss contingencies
Accrued loss contingency reserve	$ 25,000,000	25,000,000	25,000,000	25,000,000	25,000,000	25,000,000	25,000,000	25,000,000	25,000,000
Number of years remediation payments expected to be paid for applicable sites	20 years
Environmental Matters - Other
Loss contingencies
Accrued loss contingency reserve	$ 0	0	0	0	0	0	0	0	0
Insurance receivables	$ 33,000,000	$ 33,000,000	33,000,000	33,000,000	33,000,000	33,000,000	33,000,000	$ 33,000,000	33,000,000
Increase (decrease) in insurance recovery receivable									25,000,000
Environmental Matters - Regulatory Activities
Loss contingencies
Number of years after phase-out decision in May 2000 that the Company stopped manufacturing and using vast majority of perfluorooctanyl compounds	2 years
Amount of PFOA and PFOS found in drinking water, either individually or combined, that are allowed per the EPA's announced lifetime health advisory levels in parts per trillion \| item								70
Amount of PFOA in drinking water allowed per provisional health advisories in parts per trillion (superseded) \| item								400
Amount of PFOS in drinking water allowed per provisional health advisories in parts per trillion (superseded) \| item								200
Number of PFCs the EPA has required to have public water system suppliers monitor \| item								6
Number compounds EPA asked for public comment on draft toxicity assessments for PFAS compounds, including PFBS \| item								2
Number of public water supplies the EPA reported results \| item								4,920
Number of water supplies that reported above advisory level with PFOA \| item								13
Number of water supplies that reported above advisory level with PFOS \| item								46
Number of water supplies that reported above advisory level with both PFOA and PFOS under technical advisory issued by EPA in September 2016 \| item								65
Environmental Matters - Regulatory Activities \| Minimum
Loss contingencies
Number of water supply samples used to test for PFOA and PFOS under the EPA lifetime health advisory program \| item								1
Environmental Matters - Regulatory Activities \| Alabama
Loss contingencies
Number of years covered by permit for sludge containing PFAS	20 years
Environmental Matters - Regulatory Activities \| Minnesota Department of Health
Loss contingencies
Amount of PFOA in drinking water allowed per Minnesota Department of Health in parts per trillion \| item								35
Amount of PFOS in drinking water allowed per Minnesota Department of Health in parts per trillion \| item								27
Additional amounts of PFOS in drinking water allowed per Minnesota Department of Health in parts per trillion \| item								15
Amount of PFHxS in drinking water allowed per Minnesota Department of Health in parts per trillion \| item								47
Amount of PFBS in drinking water allowed per Minnesota Department of Health in parts per billion \| item								2
Environmental Matters - Litigation \| State Court of Lawrence County, Alabama
Loss contingencies
Total number of named claimants \| item								200
Environmental Matters - Litigation \| U.S. District Court for the Northern District of Alabama
Loss contingencies
Number of unnamed defendant \| defendant		3
Environmental Matters - Litigation \| Alabama
Loss contingencies
Litigation settlement awarded									35,000,000
Number of local water works for whom the water authority supplies water \| item								5
Environmental Matters - Litigation \| Morgan County, Alabama
Loss contingencies
Total number of named claimants \| item								3
Environmental Matters - Litigation \| Minnesota
Loss contingencies
Litigation settlement awarded									897,000,000
Settlement amount paid									850,000,000
Amount the State's damages expert contended that the State incurred in damages	$ 5,000,000,000	$ 5,000,000,000	5,000,000,000	5,000,000,000	5,000,000,000	5,000,000,000	5,000,000,000	$ 5,000,000,000	5,000,000,000
Environmental Matters - Litigation \| Lake Elmo, Minnesota \| Maximum
Loss contingencies
Settlement amount paid									5,000,000
Environmental Matters - Other Environmental Litigation
Loss contingencies
Accrued loss contingency reserve	$ 292,000,000	$ 292,000,000	$ 292,000,000	$ 292,000,000	$ 292,000,000	$ 292,000,000	$ 292,000,000	$ 292,000,000	292,000,000
Increase (decrease) accrued loss contingency reserve									235,000,000
Increase in liabilities, net									186,000,000
Diluted earnings per share \| $ / shares							$ 0.32
Number of landfills tested by the entity for environmental matters and litigation related to historical PFAS manufacturing operations \| item								4
Number of former disposal sites with PFC present in soil and groundwater in Washington County, Minnesota \| item								2
Environmental Matters - Other Environmental Litigation \| New Jersey
Loss contingencies
Number of unnamed defendant \| defendant		120
Approximate number of miles of a river seeking to be cleaned \| item								8
The value the award the plaintiff seeks									$ 165,000,000
Number of chemicals of concern in the sediment \| item								8
Number of commercial drum conditioning facilities \| item								2
Environmental Matters - Aqueous Film Forming Foam Litigation
Loss contingencies
Number of putative class action and other lawsuits \| item								96
Environmental Matters - Aqueous Film Forming Foam Litigation \| U.S. Judicial Panel on Multidistrict Litigation (MDL)
Loss contingencies
Number of putative class action and other lawsuits \| lawsuit					88
Environmental Matters - Other PFAS-related Environmental Litigation
Loss contingencies
Number of facilities related to the manufacture and disposal of PFAS \| facility				5
Environmental Matters - Other PFAS-related Environmental Litigation \| U.S. District Court of New York State
Loss contingencies
Number of lawsuits filed \| lawsuit					22
Number of putative class action and other lawsuits \| lawsuit					1
Environmental Matters - Other PFAS-related Environmental Litigation \| Alabama
Loss contingencies
Number of putative class action and other lawsuits \| lawsuit					2
Environmental Matters - Other PFAS-related Environmental Litigation \| Delaware
Loss contingencies
Number of putative class action and other lawsuits \| lawsuit					1
Environmental Matters - Other PFAS-related Environmental Litigation \| Maine
Loss contingencies
Number of lawsuits filed \| lawsuit					1
Environmental Matters - Other PFAS-related Environmental Litigation \| New Jersey
Loss contingencies
Number of lawsuits filed \| lawsuit					2
Number of putative class action and other lawsuits \| lawsuit					1
Environmental Matters - Other PFAS-related Environmental Litigation \| Salem County, New Jersey
Loss contingencies
Number of lawsuits filed \| lawsuit					1
Environmental Matters - Other PFAS-related Environmental Litigation \| Michigan
Loss contingencies
Number of lawsuits filed \| lawsuit					214
Number of putative class action and other lawsuits \| lawsuit					2
Environmental Matters - Other PFAS-related Environmental Litigation \| United States
Loss contingencies
Number of facilities related to the manufacture and disposal of PFAS \| facility				3
Environmental Matters - Other PFAS-related Environmental Litigation \| Europe
Loss contingencies
Number of facilities related to the manufacture and disposal of PFAS \| facility				2

Commitments and Contingencies - Product Liability (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2019 USD ($) individual lawsuit case item	Dec. 31, 2018 item
Product Liability - Bair Hugger
Product Liability Litigation
Number of plaintiffs \| item	5,080	5,015
Accrued loss contingency reserve \| $	$ 0
Number of federal bellwether cases in aggregate that have a scheduled trial date set	12
Number of federal bellwether cases dismissed	11
Number of total claims dismissed \| case	61
Product Liability - Bair Hugger and medical malpractice claims \| Hidalgo County Texas
Product Liability Litigation
Number of lawsuits filed	1
Product Liability - Bair Hugger and medical malpractice claims \| Hidalgo County Texas and Ramsey County Minnesota in Aggregate
Product Liability Litigation
Number of lawsuits filed	2
Product Liability - Dual-Ended Combat Arms Earplugs
Product Liability Litigation
Number of lawsuits filed	635
Number of putative class action and other lawsuits	6
Number of plaintiffs \| individual	1,700

Leases (Details) $ in Millions	3 Months Ended
Leases (Details) $ in Millions	Mar. 31, 2019 USD ($) approach	Jan. 31, 2019 USD ($)	Jan. 01, 2019 USD ($)	Dec. 31, 2018 USD ($)
Leases
Stockholders' equity	$ 9,703			$ 9,796
Number of options to renew for operating leases \| approach	1
Number of options to renew for finance leases \| approach	1
Operating leases, existence of option to extend	true
Finance leases, existence of option to extend	true
Lease liabilities	$ 786
Operating lease right of use assets	$ 797
Lease, Practical Expedients, Package [true false]	true
Lease, Practical Expedient, Use of Hindsight [true false]	false
Maximum
Leases
Operating lease, term	5 years
Finance lease, term	5 years
Adjustment \| ASU 2016-02 Leases
Leases
Lease liabilities			$ 800
Operating lease right of use assets		$ 800	800
Retained Earnings \| Adjustment \| ASU 2016-02 Leases
Leases
Stockholders' equity			$ 14

Leases - Components of lease expense (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Lease expense
Operating lease cost	$ 72
Finance lease cost:
Amortization of assets	4
Variable Lease, Cost	20
Total net lease cost	$ 96

Leases - Supplemental balance sheet information (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Operating leases:
Operating lease right of use assets	$ 797
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Operating lease right of use assets
Current operating lease liabilities	$ 255
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Current operating lease liabilities
Noncurrent operating lease liabilities	$ 531
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Noncurrent operating lease liabilities
Total operating lease liabilities	$ 786
Finance leases:
Property and equipment, at cost	25,124	$ 24,873
Accumulated amortization	(16,295)	(16,135)
Property, Plant and Equipment - net	8,829	$ 8,738
Current obligations of finance leases	$ 16
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Current obligations of finance leases
Finance leases, net of current obligations	$ 84
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Finance leases, net of current obligations
Total finance lease liabilities	$ 100
Weighted average remaining lease term (in years):
Operating leases weighted average remaining lease term (in years)	4 years 8 months 12 days
Finance leases weighted average remaining lease term (in years)	8 years 6 months
Weighted average discount rate:
Operating leases weighted average discount rate (as a percent)	3.00%
Finance leases weighted average discount rate (as a percent)	4.90%
Property and equipment finance leases
Finance leases:
Property and equipment, at cost	$ 191
Accumulated amortization	(89)
Property, Plant and Equipment - net	$ 102

Leases - Supplemental cash flow and other information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 75
Operating cash flows from finance leases	3
Right of use assets obtained in exchange for lease liabilities:
Operating leases	48
Finance leases	$ 9

Leases - Sale and Leased-backed asset and obligation (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Property, plant and equipment - at cost
Finance lease asset	$ 8,829	$ 8,738
Finance lease liability	100
Municipal securities
Property, plant and equipment - at cost
Finance lease liability	9
Constructed machinery and equipment
Property, plant and equipment - at cost
Finance lease asset	$ 9

Leases - Maturities of lease liabilities (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Finance Leases
Remainder of 2019	$ 17
2020	15
2021	11
2022	11
2023	11
After 2023	40
Total	105
Less: Amounts representing interest	(5)
Present value of future minimum lease payments	100
Less: Current obligations	16
Long-term obligations	84
Operating Leases
Remainder of 2019	209
2020	211
2021	137
2022	100
2023	71
After 2023	121
Total	849
Less: Amounts representing interest	(63)
Present value of future minimum lease payments	786
Current operating lease liabilities	255
Noncurrent operating lease liabilities	$ 531

Leases - Operating leases not yet commenced (Details) $ in Millions	Mar. 31, 2019 USD ($)
Leases
Additional operating lease commitments that have not yet commenced	$ 143
Additional finance lease commitments that have not yet commenced	$ 40

Leases - Disclosures related to periods prior to adoption of new lease standard (Details) £ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2003 GBP (£)
Capital and Operating Leases
Rental expense under operating leases	$ 393	$ 343	$ 318
Capital lease asset and obligation	92
Building in United Kingdom
Capital and Operating Leases
Capital lease asset and obligation	43			£ 34
Capital lease term (in years)				22 years
Capital lease obligations in aggregate
Capital and Operating Leases
Capital lease asset and obligation	$ 13	$ 13	$ 12
Capital lease term (in years)	15 years

Leases - Disclosures related to periods prior to adoption of new lease standard minimum lease payments (Details) $ in Millions	Dec. 31, 2018 USD ($)
Minimum lease payments under capital leases
2019	$ 18
2020	16
2021	14
2022	12
2023	12
After 2023	32
Total	104
Less: Amounts representing interest	12
Present value of future minimum lease payments	92
Less: Current obligations under capital leases	17
Long-term obligations under capital leases	75
Operating Leases
2019	283
2020	208
2021	153
2022	122
2023	92
After 2023	253
Total	$ 1,111

Stock-Based Compensation (Details)	3 Months Ended
Stock-Based Compensation (Details)	Mar. 31, 2019 shares
Share-based Compensation Arrangement by Share-based Payment Award Activity
Retirement age eligibility for employees	55 years
Retirement eligibility for employees, minimum years of service required	10 years
Percent of stock-based compensation related to retiree-eligible population (as a percent)	36.00%
Long Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award Activity
Number of shares authorized	123,965,000
Number of shares available for grant	22,000,000

Stock-Based Compensation - Compensation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Amounts recognized in the financial statements
Stock-based compensation programs expense	$ 130	$ 159
Income tax benefits	(80)	(98)
Stock-based compensation expenses (benefits), net of tax	50	61
Cost of sales
Amounts recognized in the financial statements
Stock-based compensation programs expense	22	23
Selling, general and administrative expenses
Amounts recognized in the financial statements
Stock-based compensation programs expense	82	109
Research, development and related expenses
Amounts recognized in the financial statements
Stock-based compensation programs expense	$ 26	$ 27

Stock-Based Compensation - Stock Options (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Stock Option Program
Balance at the beginning of the period	34,569
Granted - Annual	3,423
Exercised	(1,983)
Forfeited	(9)
Balance at the end of the period	36,000
Options exercisable	28,703
Options exercisable, exercise price	$ 133.67
Weighted average exercise price - Beginning balance	138.98
Weighted average exercise price - Granted - Annual	201.12
Weighted average exercise price - Exercised	82.26
Weighted average exercise price - Forfeited	205.82
Weighted average exercise price - Ending balance	$ 148.00
Weighted average remaining contractual life for options outstanding	71 months
Weighted average remaining contractual life for options exercisable	61 months
Aggregate intrinsic value for options outstanding	$ 2,233
Aggregate intrinsic value for options exercisable	$ 2,154
Expiration of annual grants	10 years
Compensation expense yet to be recognized	$ 117
Expense recognition period	25 months
Total intrinsic value of stock options exercised	$ 235	$ 283
Cash received from options exercised	162	166
Tax benefit realized from exercise of stock options	$ 49	$ 61
Share- based compensation assumptions
Weighted average exercise price	$ 201.12
Risk-free interest rate (as a percent)	2.60%
Dividend yield (as a percent)	2.50%
Expected volatility (as a percent)	20.40%
Expected life	79 months
Black-Scholes fair value	$ 34.19
Maximum
Stock Option Program
Vesting period	3 years
Minimum
Stock Option Program
Vesting period	1 year

Stock-Based Compensation - RSU, RS, Performance Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Restricted Stock and Restricted Stock Units
Unit and Shares Activity:
Number of Shares - Nonvested - Beginning balance	1,789
Number of Shares - Granted - Annual	551
Number of Shares - Granted - Other	1
Number of Shares - Vested	(669)
Number of Shares - Forfeited	(17)
Number of Shares - Nonvested - Ending balance	1,655
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures
Weighted Average Grant Date Fair Value - Nonvested - Beginning balance	$ 180.02
Weighted Average Grant Date Fair Value - Granted - Annual	201.12
Weighted Average Grant Date Fair Value - Granted - Other	199.63
Weighted Average Grant Date Fair Value - Vested	147.90
Weighted Average Grant Date Fair Value - Forfeited	169.34
Weighted Average Grant Date Fair Value - Nonvested - Ending balance	$ 200.17
Compensation expense yet to be recognized	$ 129
Expense recognition period	26 months
Fair value that vested	$ 133	$ 150
Tax benefit realized from vesting	$ 26	28
Vesting or performance period	3 years
Value of dividend equivalents for restricted stock units that are forfeited	$ 0
Impact on basic earnings per share due to restricted stock units dividends	$ 0
Performance Shares
Unit and Shares Activity:
Number of Shares - Nonvested - Beginning balance	562
Number of Shares - Granted - Annual	162
Number of Shares - Vested	(210)
Number of Shares - Performance Change	(125)
Number of Shares - Nonvested - Ending balance	389
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures
Weighted Average Grant Date Fair Value - Nonvested - Beginning balance	$ 188.96
Weighted Average Grant Date Fair Value - Granted - Annual	207.49
Weighted Average Grant Date Fair Value - Vested	162.16
Weighted Average Grant Date Fair Value - Performance Change	209.40
Weighted Average Grant Date Fair Value - Nonvested - Ending balance	$ 204.50
Compensation expense yet to be recognized	$ 30
Expense recognition period	21 months
Fair value that vested	$ 45	48
Tax benefit realized from vesting	$ 9	$ 11
Vesting or performance period	3 years
Performance shares awarded at estimated number of shares at the end of the performance period	100.00%
Performance Shares \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures
Expense recognition period	3 years
Number of shares to be delivered based on percent of each performance share granted upon satisfaction of performance conditions	200.00%
Performance Shares \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures
Expense recognition period	1 year
Number of shares to be delivered based on percent of each performance share granted upon satisfaction of performance conditions	0.00%

Business Segments (Details) $ in Millions	1 Months Ended		3 Months Ended	12 Months Ended
Business Segments (Details) $ in Millions	Apr. 30, 2019 segment	Mar. 31, 2019 segment	Mar. 31, 2019 segment	Dec. 31, 2018 USD ($)
Business Segment Information
Number of business segments \| segment		5	5
Business Segments in Aggregate
Business Segment Information
Increase (decrease) in net sales due to continued alignment of customer account activity				$ (32)
Increase (decrease) in operating income due to continued alignment of customer account activity				(8)
Increase (decrease) in operating income due to additional actions impacting business segment reporting				(58)
Safety and Graphics
Business Segment Information
Increase (decrease) in net sales due to additional actions impacting business segment reporting				(12)
Increase (decrease) in operating income due to additional actions impacting business segment reporting				(1)
Consumer
Business Segment Information
Increase (decrease) in net sales due to additional actions impacting business segment reporting				12
Increase (decrease) in operating income due to additional actions impacting business segment reporting				1
Corporate and Unallocated
Business Segment Information
Increase (decrease) in operating income due to additional actions impacting business segment reporting				58
Elimination of Dual Credit
Business Segment Information
Increase (decrease) in net sales due to continued alignment of customer account activity				(32)
Increase (decrease) in operating income due to continued alignment of customer account activity				$ (8)
Forecast
Business Segment Information
Number of business segments \| segment	4

Business Segments - Segment information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Business Segment Information
Net sales	$ 7,863	$ 8,278
Operating Income	1,136	1,007
Assets	39,140		$ 36,500
Depreciation and amortization	375	382
Capital expenditures	391	304
Business Segments. \| Industrial
Business Segment Information
Net sales	2,929	3,135
Operating Income	585	714
Business Segments. \| Safety and Graphics
Business Segment Information
Net sales	1,704	1,779
Operating Income	396	481
Business Segments. \| Health Care
Business Segment Information
Net sales	1,540	1,535
Operating Income	432	458
Business Segments. \| Electronics and Energy
Business Segment Information
Net sales	1,190	1,350
Operating Income	284	336
Business Segments. \| Consumer
Business Segment Information
Net sales	1,123	1,145
Operating Income	219	220
Corporate and Unallocated
Business Segment Information
Net sales	21
Operating Income	(624)	(1,037)
Elimination of Dual Credit
Business Segment Information
Net sales	(644)	(666)
Operating Income	$ (156)	$ (165)