v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) Before Income Taxes
Income (loss) from continuing operations before income taxes consisted of the following:
(Millions)202520242023
United States$1,870 $2,300 $(13,272)
International2,343 2,519 2,001 
Total$4,213 $4,819 $(11,271)
As of December 31, 2025, the Company's tax effected operating losses, capital losses, and tax credit carryovers before limitation impacts and valuation allowances were approximately:
Jurisdiction(in millions)Carryover period
Federal$290 
4 years to 20 years
State120 
5 years to indefinite
International75 
7 years to indefinite
Schedule of Provision (Benefit) for Income Taxes
Provision (benefit) for income taxes consisted of the following:
(Millions)202520242023
Current
Federal$(11)$(75)$302 
State(1)(6)38 
International597 583 494 
Deferred
Federal307 328 (3,084)
State21 1 (495)
International90 (27)(122)
Total$1,003 $804 $(2,867)
Schedule of Cash Income Tax Payments
Cash income tax payments, net of refunds, consisted of the following:
(Millions)202520242023
Federal$211 
State28
International561
China134
India
44
Korea44
Other international339
Total $800 $852 $1,384 
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)AmountPercent
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 effects212 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 items32 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 rate21.0 %21.0 %
State income taxes - net of federal benefit0.6 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 contingencies0.6 (0.4)
Employee share-based payments0.4 — 
Change in valuation allowance on Solventum ownership(7.7)— 
All other - net0.1 0.3 
Effective worldwide tax rate16.7 %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)202520242023
Year-on-year change in pre-tax income (loss) from foreign currency transactions
$(59)$(34)$40 
Schedule of Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of gross UTB is as follows:
(Millions)202520242023
Gross UTB balance at beginning of period$574 $590 $632 
Additions based on tax positions related to the current year46 13 11 
Additions for tax positions of prior years64 57 63 
Reductions for tax positions of prior years(87)(16)(42)
Settlements(45)(17)(33)
Reductions due to lapse of applicable statute of limitations(49)(36)(42)
Foreign currency translation13 (17)1 
Gross UTB balance at end of period
$516 $574 $590 
Gross interest and penalties (benefits) recognized in the consolidated statement of income (loss) (d)
$6 $25 $83 
Gross accrued interest and penalties in the consolidated balance sheet at end of period
$195 $207 $183 
(d)     The Company recognizes interest and penalties accrued related to UTB in tax expense. The amount of interest and penalties recognized may be an expense or benefit due to new or remeasured UTB accruals.
Schedule of Income Tax Holiday
As a result of certain employment commitments and capital investments made by 3M, income from certain foreign operations in the following countries is subject to reduced tax rates or, in some cases, is exempt from tax for years through the following: Singapore (2025), Switzerland (2026), China (2028) and Brazil (2034). The continuing income tax benefits attributable to the tax status of these subsidiaries are as follows:
(Millions, except per share)202520242023
Income tax benefits attributable to reduced tax rates or exemptions in foreign locations
$58 $87 $100 
Per diluted share impact of reduced tax rates or exemptions in foreign locations$0.11 $0.16 $0.18 
Schedule of Components of Deferred Tax Assets and Liabilities
Components of deferred tax assets and (liabilities) are comprised of the following:
(Millions)December 31, 2025December 31, 2024
Deferred tax assets:
Employee benefit costs$250 $241 
Product and other claims2,541 3,154 
Investments175 333 
Miscellaneous accruals220 143 
Stock-based compensation222 267 
Net operating/capital loss/tax credit carryforwards275 130 
Foreign tax credits210 143 
Research and experimentation capitalization 820 720 
Lease liabilities137 150 
Intangible amortization176 104 
Other229 70 
Gross deferred tax assets5,255 5,455 
Valuation allowance(e)
(1,052)(1,061)
Total deferred tax assets$4,203 $4,394 
Deferred tax liabilities:
Depreciation$(403)$(263)
Right-of-use asset(136)(151)
Other(256)(188)
Total deferred tax liabilities$(795)$(602)
Net deferred tax assets(f)
$3,408 $3,792 
(e)    The company has provided a valuation allowance against certain of these deferred tax assets, including the difference in basis of the retained ownership interest in Solventum, based on management’s determination that it is more-likely-than-not that the tax benefits related to these assets will not be realized.
(f)     As of December 31, 2025 and December 31, 2024, these amounts include $3,826 million and $4,146 million, respectively, of deferred tax assets reported in Other Assets on 3M’s consolidated balance sheet, and $418 million and $354 million, respectively, of deferred tax liabilities reported in Other Liabilities on 3M’s consolidated balance sheet.