v3.25.4
Restructuring Actions
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Restructuring Actions
Note 6. Restructuring Actions
Transformation Costs: 3M began a transformation program in 2025 intended as a structural redesign of longer-term manufacturing, distribution, and business process services and locations. Management approved and committed to undertake related initial restructuring actions. Associated pre-tax restructuring charges in 2025 were $51 million, reflected in Corporate and Other (see Note 20) and primarily impacting selling, general and administrative expenses and cost of sales. Employee-related charges were $35 million and asset-related and other charges were $16 million. The balance of accrued restructuring liability as of December 31, 2025 was $25 million. Additional actions are expected and are subject to management's future approval and commitment.
2023 to 2025 Structural Reorganization Actions: In 2023, 3M announced it would undertake structural reorganization actions to reduce the size of the corporate center of the Company, simplify the supply chain, streamline 3M’s geographic footprint, reduce layers of management, further align business go-to-market models to customers, and reduce manufacturing roles to align with production volumes. Beginning in the first quarter of 2023 and ending largely in the second quarter of 2025, management approved and committed to undertake associated actions that impacted approximately seven thousand positions worldwide (as updated to exclude discontinued operations) resulting in pre-tax charges as indicated in the table below. Remaining activities related to approved and committed actions were largely completed in 2025.
The related restructuring charges for periods presented were recorded in the income statement as follows:
(Millions)202520242023
Cost of sales$1 $30 $89 
Selling, general and administrative expenses20 142 295 
Research, development and related expenses— 15 31 
Total operating income impact$21 $187 $415 
The business segment operating income impact of these restructuring charges is summarized as follows:
202520242023
(Millions)Employee relatedEmployee relatedAsset-related and otherTotalEmployee relatedAsset-related and otherTotal
Safety and Industrial$10 $72 $15 $87 $89 $— $89 
Transportation and Electronics7 36 9 45 62 — 62 
Consumer4 22 13 35 26 — 26 
Corporate and Other— 6 14 20 171 67 238 
Total operating expense$21 $136 $51 $187 $348 $67 $415 
Restructuring actions, including cash and non-cash impacts, follow:
20252024
Accrued restructuring action balance (millions)Employee-relatedEmployee-relatedAsset-related and otherTotal
Balance at beginning of year$80 $99 $— $99 
Incremental expense incurred21 136 51 187 
Non-cash changes— — (51)(51)
Adjustments(14)6 — 6 
Cash payments(77)(161)— (161)
Balance at end of year$10 $80 $— $80 
2023 to 2025 PFAS Exit Restructuring Actions: 3M announced in 2022 that it would exit all PFAS manufacturing by the end of 2025 and began related workforce actions in 2023. During 2025, 2024 and 2023, 3M management approved and committed to undertake employee-related actions resulting in pre-tax charges of $9 million, $66 million, and $64 million, respectively, and made related payments resulting in accrued restructuring balances of $65 million and $86 million as of December 31, 2025 and 2024, respectively. These charges were reflected within the Transportation and Electronics business segment and primarily impacted cost of sales and selling, general and administrative expenses. This initiative, beginning in 2023 through committed 2025 actions, impacted approximately 1,200 positions worldwide.