3M CO (MMM) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that 3M CO surfaced in its latest filing.

• 3M voluntarily phased out PFOA and PFOS production globally, completing most US phase-out by end of 2002.2002
• 3M and Aearo Technologies face litigation over Combat Arms Earplugs sold from 1999 to 2015.1999 to 2015
• 3M announced in December 2022 it would exit all PFAS manufacturing by end of 2025 and discontinue use across its product portfolio.December 2022
• 3M recognized a $0.8 billion pre-tax charge in Q4 2022 for asset impairments related to the PFAS exit.Q4 2022
• 3M entered into the PWS Settlement in June 2023 to resolve drinking water claims by public water suppliers regarding PFAS, with payments of $10.5-$12.5 billion from 2024-2036.June 2023
• In August 2023, the Company entered into the CAE Settlement to resolve litigation involving Combat Arms Earplugs. Under the CAE Settlement, 3M will contribute a total of $6.0 billion between 2023 and 2029.August 2023
• CERCLA designation of PFOA and PFOS as hazardous substances in 2024 may require 3M to undertake additional investigation or remediation.2024
• The spin-off of Solventum Corporation was completed on April 1, 2024.April 1, 2024
• Solventum Information Statement dated March 13, 2024, filed as Exhibit 99.1 to Solventum’s 8-K on March 13, 2024, summarizes material terms of agreements related to the spin-off.March 13, 2024
• 3M completed its exit of PFAS manufacturing at the end of 2025.end of 2025
• The Company derived approximately 56 percent of its revenues from outside the United States in 2025.2025
• The Company entered into multiple agreements with Solventum, including a separation and distribution agreement, a transition services agreement, a tax matters agreement, an employee matters agreement, a transition distribution services agreement, a transition contract manufacturing agreement, a stockholder’s and registration rights agreement, an intellectual property cross license agreement, a master supply agreement, and a reverse master supply agreement.April 1, 2024
• 3M faces lawsuits and regulatory proceedings related to PFAS, including AFFF multi-district litigation and claims by states, counties, cities, and utilities.
• 3M's current credit ratings: A3 stable from Moody's, BBB+ stable from S&P, A- stable from Fitch.