v3.22.4
Pension and Postretirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Schedule of reconciliation of the beginning and ending balances of the benefit obligation and the fair value of plan assets
The following tables include a reconciliation of the beginning and ending balances of the benefit obligation and the fair value of plan assets as well as a summary of the related amounts recognized in the Company’s consolidated balance sheet as of December 31 of the respective years. 3M also has certain non-qualified unfunded pension and postretirement benefit plans, inclusive of plans related to supplement/excess benefits for employees impacted by particular relocations and other matters, that individually and in the aggregate are not significant and which are not included in the tables that follow. The obligations for these plans are included within other liabilities in the Company’s consolidated balance sheet and aggregated to less than $51 million as of December 31, 2022 and 2021.
Qualified and Non-Pension BenefitsPostretirement Benefits
United StatesInternational
(Millions)202220212022202120222021
Change in benefit obligation
Benefit obligation at beginning of year$18,104 $19,376 $7,942 $8,770 $2,281 $2,397 
Acquisitions/Transfers— — — — — — 
Service cost256 286 128 164 42 53 
Interest cost417 360 125 98 52 43 
Participant contributions— — 7 10 — — 
Foreign exchange rate changes— — (567)(325)1 (4)
Plan amendments— — 8 1 — — 
Actuarial (gain) loss(3,777)(588)(2,240)(433)(458)(89)
Benefit payments(1,495)(1,330)(266)(298)(115)(113)
Settlements, curtailments, special termination benefits and other— — (65)(45)(6)(6)
Benefit obligation at end of year$13,505 $18,104 $5,072 $7,942 $1,797 $2,281 
Change in plan assets
Fair value of plan assets at beginning of year16,953 17,127 8,016 8,194 1,353 1,376 
Acquisitions/Transfers— — — — — — 
Actual return on plan assets(2,875)1,079 (1,286)321 (218)93 
Company contributions65 77 90 100 3 3 
Participant contributions— — 7 10 — — 
Foreign exchange rate changes— — (602)(265)— — 
Benefit payments(1,495)(1,330)(266)(298)(115)(113)
Settlements, curtailments, special termination benefits and other— — (68)(46)(6)(6)
Fair value of plan assets at end of year$12,648 $16,953 $5,891 $8,016 $1,017 $1,353 
Funded status at end of year$(857)$(1,151)$819 $74 $(780)$(928)
Schedule of amounts recognized in balance sheet
Amounts recognized in the Consolidated Balance Sheet as of December 31, (Millions)Qualified and Non-qualified Pension BenefitsPostretirement Benefits
United StatesInternational
202220212022202120222021
Non-current assets$— $— $1,225 $943 $— $— 
Accrued benefit cost
Current liabilities(52)(59)(14)(14)(11)(5)
Non-current liabilities(805)(1,092)(392)(855)(769)(923)
Ending balance$(857)$(1,151)$819 $74 $(780)$(928)
Schedule of amounts recognized in other comprehensive income (loss)
Amounts recognized in accumulated other comprehensive income as of December 31, (Millions)Qualified and Non-qualified Pension BenefitsPostretirement Benefits
United StatesInternational
202220212022202120222021
Net transition obligation (asset)$— $— $4 $6 $— $— 
Net actuarial loss (gain)4,616 4,991 157 960 332 538 
Prior service cost (credit)(56)(80)10 3 (166)(197)
Ending balance$4,560 $4,911 $171 $969 $166 $341 
Schedule of defined benefit plan, plan with accumulated benefit obligation in excess of plan assets The following table summarizes the total accumulated benefit obligations, the accumulated benefit obligations and fair value of plan assets for defined benefit pension plans with accumulated benefit obligations in excess of plan assets, and the projected benefit obligation and fair value of plan assets for defined benefit pension plans with projected benefit obligation in excess of plan assets as of December 31:
Qualified and Non-qualified Pension Plans
United StatesInternational
(Millions)2022202120222021
Accumulated benefit obligation$12,967 $17,305 $4,814 $7,484 
Plans with accumulated benefit obligation in excess of plan assets
Accumulated benefit obligation$402 $514 $775 $2,843 
Fair value of plan assets— — 427 2,194 
Plans with projected benefit obligation in excess of plan assets
Projected benefit obligation$13,505 $18,104 $851 $3,204 
Fair value of plan assets12,648 16,953 442 2,335 
Schedule of net periodic benefit cost (benefit) Components of net periodic benefit cost and other supplemental information for the years ended December 31 follow:
Qualified and Non-qualified Pension BenefitsPostretirement Benefits
United StatesInternational
(Millions)202220212020202220212020202220212020
Net periodic benefit cost (benefit)
Operating expense
Service cost$256 $286 $261 $128 $164 $152 $42 $53 $43 
Non-operating expense
Interest cost417 360 499 125 98 117 52 43 62 
Expected return on plan assets(963)(1,055)(1,046)(271)(326)(306)(72)(78)(80)
Amortization of transition asset— — — 2 2 2 — — — 
Amortization of prior service benefit(24)(24)(24)— (3)(5)(31)(33)(33)
Amortization of net actuarial loss424 529 491 29 104 121 40 56 47 
Settlements, curtailments, special termination benefits and other12 24 16 10 3 1 2 3 3 
Total non-operating expense (benefit)(134)(166)(64)(105)(122)(70)(9)(9)(1)
Total net periodic benefit cost (benefit)$122 $120 $197 $23 $42 $82 $33 $44 $42 
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss
Amortization of transition asset$— $— $— $(2)$(2)$(2)$— $— $— 
Prior service cost (benefit)— — — 8 1 — — — — 
Amortization of prior service benefit24 24 24 — 3 5 31 33 33 
Net actuarial (gain) loss61 (614)760 (689)(434)(358)(166)(104)108 
Amortization of net actuarial loss(424)(529)(491)(29)(104)(121)(40)(56)(47)
Foreign currency— — — (82)(71)79 2 (1)(7)
Settlements, curtailments, special termination benefits and other(12)(23)(16)(4)(1)(1)(2)(3)(3)
Total recognized in other comprehensive (income) loss$(351)$(1,142)$277 $(798)$(608)$(398)$(175)$(131)$84 
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss$(229)$(1,022)$474 $(775)$(566)$(316)$(142)$(87)$126 
Schedule of defined benefit plan, assumptions
Weighted-average assumptions used to determine benefit obligations as of December 31
Qualified and Non-qualified Pension BenefitsPostretirement Benefits
United StatesInternational
202220212020202220212020202220212020
Discount rate5.18 %2.89 %2.55 %4.39 %1.80 %1.38 %5.25 %2.88 %2.50 %
Compensation rate increase3.37 %3.21 %3.21 %2.86 %2.86 %2.88 %N/AN/AN/A
Weighted-average assumptions used to determine net cost for years ended December 31
Qualified and Non-qualified Pension BenefitsPostretirement Benefits
United StatesInternational
202220212020202220212020202220212020
Discount rate - service cost3.10 %2.81 %3.41 %1.64 %1.23 %1.61 %3.11 %3.21 %3.45 %
Discount rate - interest cost2.38 %1.92 %2.87 %1.62 %1.13 %1.61 %2.59 %2.20 %3.00 %
Expected return on assets6.00 %6.50 %6.75 %3.86 %4.36 %4.70 %5.77 %6.15 %6.32 %
Compensation rate increase3.21 %3.21 %3.21 %2.86 %2.88 %2.88 %N/AN/AN/A
Schedule of expected benefit payments
Future Pension and Postretirement Benefit Payments
The following table provides the estimated pension and postretirement benefit payments that are payable from the plans to participants.
Qualified and Non-qualified Pension BenefitsPostretirement Benefits
(Millions)United StatesInternational
2023 Benefit Payments$1,057 $262 $142 
2024 Benefit Payments1,061 269 145 
2025 Benefit Payments1,065 284 148 
2026 Benefit Payments1,061 295 150 
2027 Benefit Payments1,059 307 154 
Next five years5,155 1,614 726 
Schedule of allocation of plan assets
The fair values of the assets held by the U.S. pension plans by asset class are as follows:
Fair Value Measurements Using Inputs Considered asFair Value at December 31,
Level 1Level 2Level 3
Asset Class (Millions)20222021202220212022202120222021
Equities
U.S. equities$501 $1,875 $— $— $— $— $501 $1,875 
Non-U.S. equities370 1,465 — — — — 370 1,465 
Index and long/short equity funds*271 404 
Total Equities871 3,340 — — — — 1,142 3,744 
Fixed Income
U.S. government securities1,344 1,417 29 716 — — 1,373 2,133 
Non-U.S. government securities— — 70 89 — — 70 89 
Preferred and convertible securities— — 44 54 — — 44 54 
U.S. corporate bonds— 11 4,789 4,620 — — 4,789 4,631 
Non-U.S. corporate bonds— — 871 883 — — 871 883 
Derivative instruments10 11 — 6 — — 10 17 
Other*91 132 
Total Fixed Income1,354 1,439 5,803 6,368 — — 7,248 7,939 
Private Equity
Growth equity— 58 — — — — — 58 
Partnership investments*1,700 2,003 
Total Private Equity— 58 — — — — 1,700 2,061 
Absolute Return
Fixed income and other1 1 85 166 — — 86 167 
Hedge fund/fund of funds*1,297 1,943 
Partnership investments*497 617 
Total Absolute Return1 1 85 166 — — 1,880 2,727 
Cash and Cash Equivalents
Cash and cash equivalents8 11 22 9 — — 30 20 
Repurchase agreements and derivative margin activity— — (1)— — — (1)— 
Cash and cash equivalents, valued at net asset value*789 678 
Total Cash and Cash Equivalents8 11 21 9 — — 818 698 
Total$2,234 $4,849 $5,909 $6,543 $— $— $12,788 $17,169 
Other items to reconcile to fair value of plan assets(140)(216)
Fair value of plan assets$12,648 $16,953 
* In accordance with ASC 820-10, certain investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities then divided by the number of units outstanding and is determined by the investment manager or custodian of the fund. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets.
The fair values of the assets held by the postretirement benefit plans by asset class are as follows:
Fair Value Measurements Using Inputs Considered asFair Value at December 31,
Level 1Level 2Level 3
Asset Class (Millions)20222021202220212022202120222021
Equities
U.S. equities$145 $292 $— $— $— $— $145 $292 
Non-U.S. equities23 80 — — — — 23 80 
Index and long/short equity funds*16 28 
Total Equities168 372 — — — — 184 400 
Fixed Income
U.S. government securities96 109 73 180 — — 169 289 
Non-U.S. government securities— — 5 7 — — 5 7 
U.S. corporate bonds— 1 322 291 — — 322 292 
Non-U.S. corporate bonds— — 61 59 — — 61 59 
Other*5 7 
Total Fixed Income96 110 461 537 — — 562 654 
Private Equity
Growth equity— 3 — — — — — 3 
Partnership investments*99 107 
Total Private Equity— 3 — — — — 99 110 
Absolute Return
Fixed income and other— — 5 9 — — 5 9 
Hedge fund/fund of funds*76 102 
Partnership investments*29 32 
Total Absolute Return— — 5 9 — — 110 143 
Cash and Cash Equivalents
Cash and cash equivalents21 20 1 — — — 22 20 
Cash and cash equivalents, valued at net asset value*46 36 
Total Cash and Cash Equivalents21 20 1 — — — 68 56 
Total$285 $505 $467 $546 $— $— $1,023 $1,363 
Other items to reconcile to fair value of plan assets(6)(10)
Fair value of plan assets$1,017 $1,353 
*In accordance with ASC 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities then divided by the number of units outstanding and is determined by the investment manager or custodian of the fund. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets.
The fair values of the assets held by the international pension plans by asset class are as follows:
Fair Value Measurements Using Inputs Considered asFair Value at December 31,
Level 1Level 2Level 3
Asset Class (Millions)20222021202220212022202120222021
Equities
Growth equities$59 $315 $99 $181 $— $— $158 $496 
Value equities164 328 11 15 — — 175 343 
Core equities65 107 142 547 2 5 209 659 
Equities, valued at net asset value*1 2 
Total Equities288 750 252 743 2 5 543 1,500 
Fixed Income
Domestic government73 73 1,060 1,039 3 4 1,136 1,116 
Foreign government29 22 327 458 — — 356 480 
Corporate debt securities32 32 2,155 2,389 1 10 2,188 2,431 
Fixed income securities, valued at net asset value*623 893 
Total Fixed Income134 127 3,542 3,886 4 14 4,303 4,920 
Private Equity
Real estate2 2 50 58 2 5 54 65 
Real estate, valued at net asset value*119 163 
Partnership investments*265 226 
Total Private Equity2 2 50 58 2 5 438 454 
Absolute Return
Derivatives— — 1 20 — — 1 20 
Insurance— — — — 438 504 438 504 
Other8 7 — — 1 6 9 13 
Other, valued at net asset value*— — 
Hedge funds*259 535 
Total Absolute Return8 7 1 20 439 510 707 1,072 
Cash and Cash Equivalents
Cash and cash equivalents122 145 51 46 — — 173 191 
Cash and cash equivalents, valued at net asset value*2 1 
Total Cash and Cash Equivalents122 145 51 46 — — 175 192 
Total$554 $1,031 $3,896 $4,753 $447 $534 $6,166 $8,138 
Other items to reconcile to fair value of plan assets(275)(122)
Fair value of plan assets$5,891 $8,016 
*In accordance with ASC 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities then divided by the number of units outstanding and is determined by the investment manager or custodian of the fund. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets.