Derivatives (Tables)

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Gains (Loss) on Derivative Instruments Designated as Hedges

The amount of pre-tax gain (loss) recognized in other comprehensive income (loss) related to derivative instruments designated as cash flow hedges is follows:


	Pretax gain (loss) recognized in other comprehensive income (loss) on derivatives

(Millions)		2025		2024		2023
Foreign currency forward/option contracts		$	(77)	$	128	$	81

Schedule of Gain (loss) on Derivative Instruments Designated as Fair Value Hedges

The following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for active fair value hedges, as well as remaining amounts for discontinued fair value hedges:


	Carrying value of the hedged (and formerly hedged) liabilities				Cumulative amount of fair value hedging adjustment included in carrying value of hedged liabilities for
Location on the consolidated balance sheet (millions)					Active hedges				Discontinued hedges
	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024

Long-term debt	$	959	$	924	$	—	$	(81)	$	(44)	$	2

Schedule of Gain (Loss) on Derivative and Non-Derivative Instruments Designated as Net Investment Hedges

The amount of pre-tax gain (loss) recognized in other comprehensive income (loss) related to derivative and non-derivative instruments designated as net investment hedges are as follows.


	Pretax gain (loss) recognized as cumulative translation within other comprehensive income (loss)

(Millions)		2025		2024		2023
Foreign currency denominated debt		$	(233)	$	108	$	(86)
Foreign currency forward/option contracts and cross-currency swaps		(144)		(1)		(5)
Total		$	(377)	$	107	$	(91)

Schedule of 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 on Statement of Income and Impact of Cash Flow and Fair Value Derivative Instruments and Derivatives Not Designated as Hedging Instruments:


			Location and amount of gain (loss) recognized in income

	Cost of sales	Other expense (income), net
(Millions)				2025		2024		2023		2025		2024		2023
Total consolidated financial statement line item amount				$	14,991	$	14,447	$	14,983	$	416	$	3	$	582
Pre-tax amounts recognized in income related to derivative instruments
Information regarding cash flow and fair value hedging relationships:
(Gain) or loss on cash flow hedging relationships:
Foreign currency forward/option contracts:
Amount of (gain) or loss reclassified from accumulated other comprehensive income (loss) into income(a)				(36)		(87)		(152)		—		—		—
Interest rate contracts:
Amount of (gain) or loss reclassified from accumulated other comprehensive income (loss) into income				—		—		—		8		9		9
(Gain) or loss on fair value hedging relationships:
Interest rate swaps:
Hedged items				—		—		—		81		6		15
Derivatives designated as hedging instruments				—		—		—		(81)		(6)		(15)

Information regarding derivatives not designated as hedging instruments:
(Gain) or loss on derivatives not designated as hedging instruments:
Foreign currency forward/option contracts				(46)		9		9		(94)		22		(21)

(a) For periods prior to the April 1, 2024 separation of Solventum, these include certain insignificant amounts attributable to discontinued operations.

Schedule of Location and Fair Value of Derivative Instruments

The following tables summarize the fair value of 3M’s derivative instruments, excluding non-derivative 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 and foreign currency forward/option contracts, which are presented using the foreign exchange rate at inception.


	Gross notional Amount				Assets					Liabilities
(Millions)					Location	Fair value amount				Location	Fair value amount
	December 31,					December 31,					December 31,
	2025		2024			2025		2024			2025		2024
Derivatives designated as hedging instruments
Foreign currency forward/option contracts and cross-currency swaps	$	1,842	$	1,382	Other current assets	$	23	$	61	Other current liabilities	$	35	$	6
Foreign currency forward/option contracts and cross-currency swaps	8,194		4,746		Other assets	161		78		Other liabilities	289		65
Interest rate contracts	—		800		Other assets	—		—		Other liabilities	—		81
Total derivatives designated as hedging instruments						184		139			324		152

Derivatives not designated as hedging instruments
Foreign currency forward/option contracts	2,188		2,217		Other current assets	8		3		Other current liabilities	6		13



Total derivative instruments						$	192	$	142		$	330	$	165

Schedule of Offsetting Assets

Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties


(Millions)	Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Liabilities		Net Amount of Derivative Assets
	December 31,		December 31,		December 31,
	2025	2024	2025	2024	2025	2024
Derivatives subject to master netting agreements	192	142	175	64	17	78

Schedule of Offsetting Liabilities

Offsetting of Financial Liabilities under Master Netting Agreements with Derivative Counterparties


(Millions)	Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Assets		Net Amount of Derivative Liabilities
	December 31,		December 31,		December 31,
	2025	2024	2025	2024	2025	2024
Derivatives subject to master netting agreements	330	165	175	64	155	101

Schedule of Effective Income Tax Rate

A reconciliation of the U.S. federal statutory income tax rate to 3M's worldwide effective income tax rate is provided below:


	2025
(Millions)	Amount		Percent
U.S. federal statutory tax rate	$	885	21.0	%
State and local income taxes, net of federal income tax effect(a)	26		0.6
Foreign tax effects	212		5.0





Effect of cross-border tax laws
Global intangible low-taxed income (net of foreign tax credits)	100		2.4

Other	(71)		(1.7)
Tax credits	(44)		(1.0)
Changes in valuation allowances	(87)		(2.1)
Nontaxable or nondeductible items	32		0.8
Changes in unrecognized tax benefits	(50)		(1.2)
Effective worldwide tax rate	$	1,003	23.8	%

(a) State taxes in California, Florida, Iowa, Massachusetts, New York, Virginia and Wisconsin made up the majority (greater than 50 percent) of this category.



	2024		2023(b)
Statutory U.S. tax rate	21.0	%	21.0	%
State income taxes - net of federal benefit	0.6		3.2
International income taxes - net (c)	2.1		0.6
Global intangible low taxed income (GILTI)	0.6		(0.3)
Foreign derived intangible income (FDII)	(0.3)		0.6
U.S. research and development credit	(0.7)		0.4
Reserves for tax contingencies	0.6		(0.4)
Employee share-based payments	0.4		—
Change in valuation allowance on Solventum ownership	(7.7)		—
All other - net	0.1		0.3
Effective worldwide tax rate	16.7	%	25.4	%

(b) A positive rate reconciliation percent for the year ended 2023 is a tax benefit on a pretax loss.

(c) International income taxes include tax expense associated with international earnings no longer considered permanently reinvested.

3M estimates that year-on-year foreign currency transaction effects, impacted pre-tax income (loss) from continuing operations approximately as follows. These estimates include transaction gains and losses, including derivative instruments designed to reduce foreign currency exchange rate risks.



(Millions)	2025		2024		2023
Year-on-year change in pre-tax income (loss) from foreign currency transactions	$	(59)	$	(34)	$	40

3M CO 10-K