v3.22.4
Long-Term Debt and Short-Term Borrowings
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Long-Term Debt and Short-Term Borrowings Long-Term Debt and Short-Term Borrowings
The following debt tables reflect effective interest rates, which include the impact of interest rate swaps, as of December 31, 2022. If the debt was issued on a combined basis, the debt has been separated to show the impact of the fixed versus floating effective interest rates. Carrying value includes the impact of debt issuance costs and fair value hedging activity. Long-term debt and short-term borrowings as of December 31 consisted of the following:
Long-Term Debt
(Millions)Currency/ Fixed vs. FloatingEffective Interest RateFinal Maturity DateCarrying Value
Description / 2022 Principal Amount20222021
Medium-term note (repaid in 2022)
EUR Fixed— %2022— 567 
Medium-term note (repaid in 2022)
USD Fixed— %2022— 599 
Registered note ($500 million)
USD Fixed1.86 %2023500 499 
Medium-term note ($650 million)
USD Fixed2.26 %2023650 649 
Medium-term note (€600 million)
EUR Fixed1.14 %2023639 679 
Medium-term note ($300 million)
USD Fixed3.30 %2024300 299 
Medium-term note ($500 million)
USD Fixed2.98 %2024501 501 
Medium-term note ($300 million)
USD Floating4.81 %2024300 300 
Registered note ($750 million)
USD Fixed2.12 %2025747 746 
Registered note ($500 million)
USD Fixed2.67 %2025499 498 
Medium-term note ($550 million)
USD Fixed3.04 %2025549 548 
Medium-term note ($650 million)
USD Fixed2.37 %2026646 645 
Medium-term note (€750 million)
EUR Fixed1.65 %2026792 842 
Floating rate note ($19 million)
USD Floating4.37 %202718 19 
Medium-term note ($850 million)
USD Fixed2.95 %2027845 844 
30-year debenture ($220 million)
USD Fixed6.44 %2028223 224 
Floating rate note ($150 million)
USD Floating6.49 %2028129 147 
Floating rate note ($150 million)
USD Floating6.44 %2028129 147 
Floating rate note ($250 million)
USD Floating6.69 %2028211 240 
Floating rate note ($150 million)
USD Floating6.64 %2028127 144 
Floating rate note ($100 million)
USD Floating6.73 %202884 96 
Medium-term note ($600 million)
USD Fixed3.62 %2028598 598 
Medium-term note ($800 million)
USD Fixed3.38 %2029797 797 
Registered note ($1 billion)
USD Fixed2.50 %2029989 988 
Registered note ($600 million)
USD Fixed3.09 %2030596 596 
Medium-term note (€500 million)
EUR Fixed1.90 %2030526 560 
Medium-term note (€500 million)
EUR Fixed1.54 %2031530 563 
30-year bond ($555 million)
USD Fixed5.73 %2037552 551 
Floating rate note ($52 million)
USD Floating4.16 %204052 52 
Floating rate note ($96 million)
USD Floating4.16 %204196 96 
Medium-term note ($325 million)
USD Fixed4.05 %2044315 315 
Floating rate note ($54 million)
USD Floating4.16 %204453 53 
Medium-term note ($500 million)
USD Fixed3.37 %2046478 477 
Medium-term note ($500 million)
USD Fixed3.68 %2047492 492 
Medium-term note ($650 million)
USD Fixed4.07 %2048638 638 
Medium-term note ($500 million)
USD Fixed3.78 %2048504 505 
Registered note ($500 million)
USD Fixed3.37 %2049486 485 
Registered note ($350 million)
USD Fixed3.72 %2050346 346 
Other borrowingsVarious0.09 %2023-20292 2 
Total long-term debt15,939 17,347 
Less: current portion of long-term debt1,938 1,291 
Long-term debt (excluding current portion)$14,001 $16,056 
Post-Swap Borrowing (Long-Term Debt, Including Current Portion)
20222021
(Millions)Carrying ValueEffective Interest RateCarrying ValueEffective Interest Rate
Fixed-rate debt$14,738 2.93 %$16,053 2.80 %
Floating-rate debt1,201 5.70 %1,294 1.43 %
Total long-term debt, including current portion$15,939 $17,347 
Short-Term Borrowings and Current Portion of Long-Term Debt
Effective Interest RateCarrying Value
(Millions)20222021
Current portion of long-term debt1.93 %$1,938 $1,291 
Other borrowings— %— 16 
Total short-term borrowings and current portion of long-term debt$1,938 $1,307 
Other short-term borrowings primarily consisted of bank borrowings by international subsidiaries.
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 unamortized debt issue costs such that total maturities equal the carrying value of long-term debt as of December 31, 2022. The maturities of long-term debt for the periods subsequent to December 31, 2022 are as follows (in millions):
20232024202520262027
After 2027
Total
$1,938$1,100$1,865$1,438$845$8,753$15,939
As a result of put provisions associated with certain debt instruments, long-term debt payments due in 2023 include floating rate notes totaling $149 million (classified as current portion of long-term debt).
Credit Facilities
3M has an amended and restated $3.0 billion five year revolving credit facility expiring in November 2024. The revolving credit agreement includes a provision under which 3M may request an increase of up to $1.0 billion (at lender’s discretion), bringing the total facility up to $4.0 billion. In addition, 3M entered into a $1.25 billion 364-day credit facility, which was renewed in November 2022 with an expiration date of November 2023. The 364-day credit agreement includes a provision under which 3M may convert any advances outstanding on the maturity date into term loans having a maturity date one year later. These credit facilities were undrawn at December 31, 2022. Under both the $3.0 billion and $1.25 billion credit agreements, the Company is required to maintain its EBITDA to Interest Ratio as of the end of each fiscal quarter at not less than 3.0 to 1. This is calculated (as defined in the agreement) as the ratio of consolidated total EBITDA for the four consecutive quarters then ended to total interest expense on all funded debt for the same period. At December 31, 2022, this ratio was approximately 19 to 1. Debt covenants do not restrict the payment of dividends.
In December 2021 and June 2022, 3M entered into debt financing facilities providing commitments for term loans and potential bridge financing aggregating $1.0 billion related to the Food Safety Division split-off transaction and combination with Neogen (discussed in Note 3). The debt commitments also included a $150 million revolving credit facility for the Food Safety business. Coincident with completion of the September 2022 split-off, the Food Safety business term loan borrowings funded the cash payment to 3M discussed in Note 3. The bridge financing component of these facilities was terminated early and not utilized. Obligations under the commitments (including the $150 million revolving credit facility) transferred with the Food Safety business and became those of Neogen.
Other Credit Facilities
The Company also had an additional $318 million in stand-alone letters of credit and bank guarantees issued and outstanding at December 31, 2022. These instruments are utilized in connection with normal business activities.
Long-Term Debt Issuances and Fixed-to-Floating Interest Rate Swaps
The principal amounts, interest rates and maturity dates of individual long-term debt issuances can be found in the long-term debt table found at the beginning of this note.
During the second and third quarters of 2021, 3M entered into interest rate swaps with an aggregate notional amount of $800 million. These swaps converted $500 million and $300 million of 3M’s $1 billion and $650 million principal amount of fixed rate notes due 2049 and 2050, respectively, into floating rate debt for the portion of their terms through mid-2028 with an interest rate based on a three-month LIBOR index.
In March 2020, 3M issued $1.75 billion aggregate principal amount of fixed rate registered notes. These were comprised of $500 million of 5-year notes due 2025 with a coupon rate of 2.65%, $600 million of 10-year notes due 2030 with a coupon rate of 3.05%, and $650 million of 30-year notes due 2050 with a coupon rate of 3.70%.
Long-Term Debt Maturities and Extinguishments
In February 2022, 3M repaid 500 million euros aggregate principal amount of fixed-rate medium-term notes that matured. In June 2022, 3M repaid $600 million aggregate principal amount of fixed-rate medium-term notes that matured.
In November 2021, 3M repaid 600 million euros aggregate principal amount of Eurobonds that matured.
In March 2021, 3M, via a make-whole-call offer, redeemed $450 million principal amount of 2.75% notes due 2022. The Company recorded an early debt extinguishment pre-tax charge of approximately $11 million within interest expense. This charge reflected the differential between the carrying value and the amount paid to reacquire the notes and related expenses.
In December 2020, 3M, via make-whole-call offers, repaid $1 billion aggregate principal amount of its outstanding notes. This included $400 million aggregate principal amount of 3.00% notes and $600 million aggregate principal amount of 1.625% notes, both of which were due to mature in 2021. The Company recorded an early debt extinguishment pre-tax charge of approximately $10 million within interest expense. This charge reflected the differential between the carrying value and the amount paid to reacquire the notes and related expenses.
In May 2020, 3M repaid $650 million euros aggregate principal amount of floating-rate medium-term notes that matured. In August 2020, 3M repaid $500 million aggregate principal amount of floating-rate medium-term notes that matured.
Floating Rate Notes
At various times, 3M has issued floating rate notes containing put provisions. 3M would be required to repurchase these securities at various prices ranging from 99 percent to 100 percent of par value according to the reduction schedules for each security. In December 2004, 3M issued a forty-year $60 million floating rate note, with a rate based on a floating LIBOR index (noting contracts will be modified to apply a new reference rate where applicable). Under the terms of this floating rate note due in 2044, holders have an annual put feature at 100 percent of par value from 2014 and every anniversary thereafter until final maturity. Under the terms of the floating rate notes due in 2027, 2040 and 2041, holders have put options that commence ten years from the date of issuance and each third anniversary thereafter until final maturity at prices ranging from 99 percent to 100 percent of par value. For the periods presented, 3M was required to repurchase an immaterial amount of principal on the aforementioned floating rate notes.