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Derivatives
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives
Note 13. Derivatives
The Company uses interest rate swaps, cross-currency swaps, and forward and option contracts to manage risks generally associated with foreign exchange rate and interest rate fluctuations. Note 15 to the Consolidated Financial Statements in 3M's 2025 Annual Report on Form 10-K explains the types of derivatives and financial instruments used by 3M, how and why 3M uses such instruments, and how such instruments are accounted for. It also contains information regarding previously initiated contracts or instruments.
Additional information with respect to derivatives is included elsewhere as follows:
•Impact on other comprehensive income of non-derivative hedging and derivative instruments is included in Note 8.
•Fair value of derivative instruments is included in Note 14.
•Derivatives and/or hedging instruments associated with the Company’s long-term debt are described in Note 15 to the Consolidated Financial Statements in 3M's 2025 Annual Report on Form 10-K.
Refer to the section below titled Location on Statement of Income and Impact of Cash Flow Derivative Instruments and Derivatives Not Designated as Hedging Instruments for details on the location within the consolidated statements of income for amounts of gains and losses related to derivative instruments both designated and not designated as hedging instruments. Additional information relative to cash flow hedges, net investment hedges and derivatives not designated as hedging instruments is included below as applicable.
Cash Flow Hedges: For the periods presented, the amounts of pre-tax gain (loss) recognized in other comprehensive income (loss) related to derivative instruments designated as cash flow hedges were
Net Investment Hedges: The gross notional amount of foreign exchange forward/option contracts and cross-currency swaps designated in net investment hedges is included in the totals within the "Location, Fair Value, and Gross Notional Amounts of Derivative Instruments" table further below. In addition, at March 31, 2026, 3M had a principal amount of long-term debt instruments designated in net investment hedges totaling €1.8 billion.
During the first quarter of 2026, 3M entered into foreign currency forward contracts and collared foreign currency forward contracts with a gross notional value at inception of $4.1 billion designated as hedges of portions of its net investment in international subsidiaries
The amount of gain (loss) excluded from effectiveness testing and recognized in income for instruments designated in net investment hedge relationships was immaterial for the three months ended March 31, 2026 and 2025. The amounts 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)
Three months ended March 31,
(Millions)20262025
Foreign currency denominated debt $49 $(72)
Foreign currency forward/option contracts and cross-currency swaps47 (43)
Total $96 $(115)
Derivatives Not Designated as Hedging Instruments: Derivatives not designated as hedging instruments include de-designated foreign currency forward and option contracts that formerly were designated in cash flow hedging relationships. 3M may de-designate a cash flow hedge before the forecasted transaction occurs if the forecasted transaction is no longer probable, if the hedge is no longer expected to be highly effective in offsetting changes in the cash flows of the forecasted transaction, or in certain other circumstances. In addition, 3M enters into foreign currency contracts that are not designated in hedging relationships to offset changes in the value of various non-functional currency denominated items including certain intercompany financing balances. These derivative instruments are not designated in hedging relationships; therefore, fair value gains and losses on these contracts are recorded in earnings. The Company does not hold or issue derivative financial instruments for trading purposes.
Location on Statement of Income and Impact of Cash Flow Derivative Instruments and Derivatives Not Designated as Hedging Instruments: For the periods presented, pre-tax amounts recognized in respective income statement line items were not significant related to derivative instruments in cash flow hedging relationships or regarding derivatives not designated as hedging instruments. Amounts are reflected in costs of sales and other expense (income), net.
Location, Fair Value, and Gross Notional Amounts of Derivative Instruments: The following table summarizes 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
March 31, 2026December 31, 2025March 31, 2026December 31, 2025March 31, 2026December 31, 2025
Derivatives designated as hedging instruments
Foreign currency forward/option contracts and cross-currency swaps
$3,438 $1,842 Other current assets$49 $23 Other current liabilities$36 $35 
Foreign currency forward/option contracts and cross-currency swaps11,152 8,194 Other assets169 161 Other liabilities244 289 
Total derivatives designated as hedging instruments 218 184 280 324 
Derivatives not designated as hedging instruments
Foreign currency forward/option contracts 2,603 2,188 Other current assets14 8 Other current liabilities17 6 
Total derivative instruments$232 $192 $297 $330 
Credit Risk and Offsetting of Assets and Liabilities of Derivative Instruments: The Company is exposed to credit loss in the event of nonperformance by counterparties in derivative contracts. However, the Company’s risk is limited to the fair value of the instruments. The Company actively monitors its exposure to credit risk through the use of credit approvals and credit limits, and by selecting major international banks and financial institutions as counterparties. 3M enters into master netting arrangements with counterparties when possible to mitigate credit risk in derivative transactions. A master netting arrangement may allow each counterparty to net settle amounts owed between a 3M entity and the counterparty as a result of multiple, separate derivative transactions. The Company does not anticipate nonperformance by any of these counterparties.
3M has elected to present the fair value of derivative assets and liabilities within the Company’s consolidated balance sheet on a gross basis even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. However, the following tables provide information as if the Company had to offset the asset and liability balances of derivative instruments, netted in accordance with various criteria in the event of default or termination as stipulated by the terms of netting arrangements with each of the counterparties. For each counterparty, if netted, the Company would offset the asset and liability balances of all derivatives at the end of the reporting period based on the 3M entity that is a party to the transactions. Derivatives not subject to master netting agreements are not eligible for net presentation. For the periods presented, 3M has not received cash collateral from derivative counterparties.
Offsetting of Financial Assets under Master Netting Agreements with Derivative Counterparties
Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting Recognized Derivative LiabilitiesNet Amount of Derivative Assets
(Millions)March 31, 2026December 31, 2025March 31, 2026December 31, 2025March 31, 2026December 31, 2025
Derivatives subject to master netting agreements$232 $192 $190 $175 $42 $17 
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
March 31, 2026December 31, 2025March 31, 2026December 31, 2025March 31, 2026December 31, 2025
Derivatives subject to master netting agreements$297 $330 $190 $175 $107 $155 
Currency Effects: 3M estimates that year-on-year foreign currency transaction effects, impacted pre-tax income (loss) approximately as follows. These estimates include transaction gains and losses, including derivative instruments designed to reduce foreign currency exchange rate risks.
Three months ended March 31,
(Millions)20262025
Year-on-year change in pre-tax income (loss) from foreign currency transactions
$(26)$5