v3.25.4
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)202520242023
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) liabilitiesCumulative amount of fair value hedging adjustment included in carrying value of hedged liabilities for
Location on the consolidated balance sheet (millions)Active hedgesDiscontinued hedges
December 31, 2025December 31, 2024December 31, 2025December 31, 2024December 31, 2025December 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)202520242023
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 salesOther expense (income), net
(Millions)202520242023202520242023
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
AssetsLiabilities
 (Millions)Location
Fair value amount
Location
Fair value amount
December 31,
December 31,
December 31,
202520242025202420252024
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 swaps8,194 4,746 Other assets161 78 Other liabilities289 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 assets8 3 Other current liabilities6 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 SheetGross Amount of Eligible Offsetting Recognized Derivative LiabilitiesNet Amount of Derivative Assets
December 31,
December 31,
December 31,
202520242025202420252024
Derivatives subject to master netting agreements192142175641778
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 SheetGross Amount of Eligible Offsetting Recognized Derivative AssetsNet Amount of Derivative Liabilities
December 31,
December 31,
December 31,
202520242025202420252024
Derivatives subject to master netting agreements33016517564155101
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