Full Press Release Details
3M Reports First-Quarter 2021 Results
First-Quarter Highlights:
| - | Sales of $8.9 billion, up 9.6 percent year-on-year | |
| - | Organic local-currency sales increased 8.0 percent year-on-year | |
| - | Both GAAP and adjusted EPS of $2.77 | |
| - | Operating cash flow of $1.7 billion; adjusted free cash flow of $1.4 billion, up 49 percent year-on-year | |
| - | Returned $1.1 billion to shareholders via dividends and gross share repurchases | |
| - | Leading in sustainability: introduced new carbon, water and plastics goals |
ST. PAUL, Minn. - April 27, 2021 3M (NYSE: MMM) today reported first-quarter 2021 results.
"The first quarter was highlighted by broad-based organic growth, robust cash flow and a double-digit increase in earnings per share," said Mike Roman, 3M chairman and chief executive officer. "Our four industry-leading businesses are delivering strong results, while we accelerate 3M's digital transformation and sustainability efforts with significant new goals to improve air and water quality. While uncertainty related to COVID-19 remains, we will stay focused on driving growth, building on favorable market trends, improving operational performance and delivering for customers and shareholders."
First-Quarter Results
Sales grew 9.6 percent year-on-year to $8.9 billion. Organic local-currency sales increased 8.0 percent while divestitures decreased sales by 1.4 percent. Foreign currency translation increased sales by 3.0 percent year-on-year.
Total sales grew 13.7 percent in Safety and Industrial, 13.1 percent in Transportation and Electronics, 9.8 percent in Consumer, and 6.8 percent in Health Care. Organic local-currency sales increased 10.3 percent in Safety and Industrial, 9.8 percent in Transportation and Electronics, 9.3 percent in Health Care, and 7.8 percent in Consumer.
On a geographic basis, total sales grew 18.1 percent in Asia Pacific, 10.4 percent in EMEA (Europe, Middle East and Africa), and 4.5 percent in the Americas. Organic local-currency sales grew 12.8 percent in Asia Pacific, 6.3 percent in the Americas, and 5.5 percent in EMEA.
Both first-quarter GAAP and adjusted earnings were $2.77 per share, resulting in year-on-year increases of 23 percent and 27 percent on a GAAP and adjusted-basis, respectively. First quarter operating income was $2.0 billion with operating margins of 22.5 percent, as referenced in the "Supplemental Financial Information Non-GAAP Measures" section.
The company's operating cash flow was $1.7 billion with adjusted free cash flow of $1.4 billion contributing to adjusted free cash flow conversion of 86 percent. 3M returned $1.1 billion to shareholders in the first quarter of 2021, including $858 million in cash dividends and $231 million of gross share repurchases. The company reduced total debt by $0.6 billion, or 3 percent, and net debt by $0.7 billion, or 5 percent, sequentially. See the "Supplemental Financial Information Non-GAAP Measures" section for applicable information.
As previously disclosed in the company's Form 8-K dated March 22, 2021, effective in the first quarter of 2021, 3M changed its accounting principle for pension/postretirement plan costs and its measure of segment operating performance. The information provided herein reflects the impact of these changes for all periods presented.
First-Quarter Business Group Discussion
Safety and Industrial
| Sales increased in personal safety, roofing granules, industrial adhesives and tapes, automotive aftermarket, electrical markets, and abrasives; sales declined in closure and masking. | ||
| Sales grew across all geographic areas. |
Transportation and Electronics
| Sales of $2.5 billion, up 13.1 percent in U.S. dollars. Organic local-currency sales increased 9.8 percent and foreign currency translation increased sales by 3.3 percent. | ||
| On an organic local-currency basis: |
| Sales increased in electronics, automotive and aerospace, and advanced materials; sales were flat in transportation safety; sales declined in commercial solutions. | ||
| Sales grew in Asia Pacific; sales were flat in EMEA; sales declined in the Americas. |
| Sales of $2.2 billion, up 6.8 percent in U.S. dollars. Organic local-currency sales increased 9.3 percent, foreign currency translation increased sales by 3.1 percent and divestitures decreased sales by 5.6 percent. | ||
| On an organic local-currency basis: |
| Sales increased in oral care, separation and purification, medical solutions, and health information systems; sales declined in food safety. | ||
| Sales grew across all geographic areas. |
| Sales of $1.4 billion, up 9.8 percent in U.S. dollars. Organic local-currency sales increased 7.8 percent and foreign currency translation increased sales by 2.0 percent. | ||
| On an organic local-currency basis: |
| Sales increased in home improvement, stationery and office supplies, and home care; sales declined in consumer health and safety. | ||
| Sales grew across all geographic areas. |
Full-Year 2021 Outlook
3M's full-year 2021 guidance remains unchanged with earnings expected to be in the range of $9.20 to $9.70 per share. The company expects its full-year total sales growth in the range of 5 to 8 percent with organic local-currency growth between 3 to 6 percent. 3M also expects its full-year free cash flow conversion to be in the range of 95 to 105 percent, as referenced in the "Supplemental Financial Information Non-GAAP Measures" section.
Committed to Leadership in Sustainability
In February, 3M announced plans to invest approximately $1 billion over the next 20 years to accelerate its new environmental goals: achieve carbon neutrality by 2050, reduce water use by 25% at its facilities, and return higher quality water to the environment after use in manufacturing operations.
Achieving Carbon Neutrality
Reducing Water Use
Returning Higher Quality Water
In addition, 3M announced last week it expects to reduce its dependence on virgin fossil-based plastics by 125 million pounds by 2025. 4 To achieve this new goal, 3M is innovating the products and packaging in its Consumer Business Group with advancements focused on the use of recycled content and bio-based plastics, as well as more sustainable product and packaging designs to decrease overall plastic use. 4
Over the last two decades 3M has reduced its emissions by 70 percent, while doubling its revenues. The company's headquarters in Saint Paul, Minnesota, is powered by renewable electricity, and 40 percent of 3M's global electricity use is renewable, on its way to 100 percent. Sustainability is embedded in every new 3M product, and over the last five years the company's innovations have helped customers avoid 75 million tons of emissions. The company will provide its annual sustainability report in early May which will provide further details.
3M will conduct an investor teleconference at 9:00 a.m. EDT (8:00 a.m. CDT) today. Investors can access this conference via the following:
| Live telephone: | ||
| Call 800-762-2596 within the U.S. or +1 212-231-2916 outside the U.S. Please join the call at least 10 minutes before the start time. |
| Webcast replay: | ||
| Go to 3M's Investor Relations website at http://investors.3M.com and click on "Quarterly Earnings." |
| Telephone replay: | ||
| Call 800-633-8284 within the U.S. or +1 402-977-9140 outside the U.S. (for both U.S. and outside the U.S., the access code is 21972035). The telephone replay will be available until 11:30 a.m. EDT (10:30 a.m. CDT) on May 4, 2021. |
| 1. | 2019 is the baseline measure year. | |
| 2. | Expands previous 2025 goal of staying below 50% of 2002 baseline. 3M's 2030 Scope 1 and 2 emissions will now be reduced more than 85% from 2002 levels. | |
| 3. | Expands previous commitment to reduce water use by 10% between 2015-2025. | |
| 4. | 2020 is the baseline measure year. |
Forward-Looking Statements
This news release contains forward-looking information about 3M's financial results and estimates and business prospects that involve substantial risks and uncertainties. You can identify these statements by the use of words such as "anticipate," "estimate," "expect," "aim," "project," "intend," "plan," "believe," "will," "should," "could," "target," "forecast" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans or prospects. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic, political, regulatory, capital markets and other external conditions and other factors beyond the Company's control, including natural and other disasters or climate change affecting the operations of the Company or its customers and suppliers; (2) risks related to public health crises such as the global pandemic associated with the coronavirus (COVID-19); (3) foreign currency exchange rates and fluctuations in those rates; (4) liabilities related to certain fluorochemicals, including lawsuits concerning various PFAS-related products and chemistries, and claims and governmental regulatory proceedings and inquiries related to PFAS in a variety of jurisdictions; (5) legal proceedings, including significant developments that could occur in the legal and regulatory proceedings described in the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2020, and any subsequent quarterly reports on Form 10-Q (the "Reports"); (6) competitive conditions and customer preferences; (7) the timing and market acceptance of new product offerings; (8) the availability and cost of purchased components, compounds, raw materials and energy (including oil and natural gas and their derivatives) due to shortages, increased demand or supply interruptions (including those caused by natural and other disasters and other events); (9) unanticipated problems or delays with the phased implementation of a global enterprise resource planning (ERP) system, or security breaches and other disruptions to the Company's information technology infrastructure; (10) the impact of acquisitions, strategic alliances, divestitures and other unusual events resulting from portfolio management actions and other evolving business strategies, and possible organizational restructuring; (11) operational execution, including scenarios where the Company generates fewer productivity improvements than estimated; (12) financial market risks that may affect the Company's funding obligations under defined benefit pension and postretirement plans; (13) the Company's credit ratings and its cost of capital; and (14) tax-related external conditions, including changes in tax rates, laws or regulations. Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located in the Reports under "Cautionary Note Concerning Factors That May Affect Future Results" and "Risk Factors" in Part I, Items 1 and 1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly Reports), as updated by applicable Current Reports on Form 8-K. The information contained in this news release is as of the date indicated. The Company assumes no obligation to update any forward-looking statements contained in this news release as a result of new information or future events or developments.
3M Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
(Millions, except per-share amounts)
| Three months ended | ||||||||
| March 31, | ||||||||
| 2021 | 2020 | |||||||
| Net sales | $ | 8,851 | $ | 8,075 | ||||
| Operating expenses | ||||||||
| Cost of sales | 4,525 | 4,109 | ||||||
| Selling, general and administrative expenses | 1,808 | 1,768 | ||||||
| Research, development and related expenses | 524 | 537 | ||||||
| Gain on sale of businesses | - | (2 | ) | |||||
| Total operating expenses | 6,857 | 6,412 | ||||||
| Operating income | 1,994 | 1,663 | ||||||
| Other expense (income), net | 49 | 75 | ||||||
| Income before income taxes | 1,945 | 1,588 | ||||||
| Provision for income taxes | 319 | 278 | ||||||
| Income of consolidated group | 1,626 | 1,310 | ||||||
| Income (loss) from unconsolidated subsidiaries, net of taxes | 1 | - | ||||||
| Net income including noncontrolling interest | 1,627 | 1,310 | ||||||
| Less: Net income (loss) attributable to noncontrolling interest | 3 | 2 | ||||||
| Net income attributable to 3M | $ | 1,624 | $ | 1,308 | ||||
| Weighted average 3M common shares outstanding - basic | 580.5 | 576.8 | ||||||
| Earnings per share attributable to 3M common shareholders - basic | $ | 2.80 | $ | 2.27 | ||||
| Weighted average 3M common shares outstanding - diluted | 586.3 | 581.5 | ||||||
| Earnings per share attributable to 3M common shareholders - diluted | $ | 2.77 | $ | 2.25 |
3M Company and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in millions)
| March 31, | December 31, | |||||||
| 2021 | 2020 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 4,636 | $ | 4,634 | ||||
| Marketable securities - current | 501 | 404 | ||||||
| Accounts receivable - net | 4,817 | 4,705 | ||||||
| Inventories | 4,458 | 4,239 | ||||||
| Prepaids | 535 | 675 | ||||||
| Other current assets | 398 | 325 | ||||||
| Total current assets | 15,345 | 14,982 | ||||||
| Property, plant and equipment - net | 9,240 | 9,421 | ||||||
| Operating lease right of use assets | 871 | 864 | ||||||
| Goodwill and intangible assets - net | 19,351 | 19,637 | ||||||
| Other assets | 2,373 | 2,440 | ||||||
| Total assets | $ | 47,180 | $ | 47,344 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Short-term borrowings and | ||||||||
| current portion of long-term debt | $ | 1,368 | $ | 806 | ||||
| Accounts payable | 2,670 | 2,561 | ||||||
| Accrued payroll | 655 | 747 | ||||||
| Accrued income taxes | 277 | 300 | ||||||
| Operating lease liabilities - current | 267 | 256 | ||||||
| Other current liabilities | 3,126 | 3,278 | ||||||
| Total current liabilities | 8,363 | 7,948 | ||||||
| Long-term debt | 16,819 | 17,989 | ||||||
| Other liabilities | 8,170 | 8,476 | ||||||
| Total liabilities | $ | 33,352 | $ | 34,413 | ||||
| Total equity | $ | 13,828 | $ | 12,931 | ||||
| Shares outstanding | ||||||||
| March 31, 2021: 579,675,002 | ||||||||
| December 31, 2020: 577,749,638 | ||||||||
| Total liabilities and equity | $ | 47,180 | $ | 47,344 |
3M Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in millions)
| Three months ended | ||||||||
| March 31, | ||||||||
| 2021 | 2020 | |||||||
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | 1,688 | $ | 1,213 | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property, plant and equipment | (310 | ) | (332 | ) | ||||
| Acquisitions, net of cash acquired | - | (25 | ) | |||||
| Purchases and proceeds from sale or maturities of marketable securities and investments - net | (110 | ) | (111 | ) | ||||
| Proceeds from sale of businesses, net of cash sold | - | 86 | ||||||
| Other investing activities | 51 | 7 | ||||||
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (369 | ) | (375 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Change in debt | (444 | ) | 2,207 | |||||
| Purchases of treasury stock | (231 | ) | (365 | ) | ||||
| Proceeds from issuances of treasury stock pursuant to stock option and benefit plans | 293 | 149 | ||||||
| Dividends paid to shareholders | (858 | ) | (847 | ) | ||||
| Other financing activities | (11 | ) | (36 | ) | ||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (1,251 | ) | 1,108 | |||||
| Effect of exchange rate changes on cash and cash equivalents | (66 | ) | (46 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 2 | 1,900 | ||||||
| Cash and cash equivalents at beginning of year | 4,634 | 2,353 | ||||||
| Cash and cash equivalents at end of period | $ | 4,636 | $ | 4,253 |
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES
| (Dollars in millions, except per share amounts) | Operating Income | Operating Income Margin | Income Before Taxes | Provision for Income Taxes | Effective Tax Rate | Net Income Attributable to 3M | Earnings Per Diluted Share | Earnings per diluted share percent change | ||||||||||||||||||||||||
| Q1 2020 GAAP | $ | 1,663 | 20.6 | % | $ | 1,588 | $ | 278 | 17.5 | % | $ | 1,308 | $ | 2.25 | ||||||||||||||||||
| Adjustments for special items: | ||||||||||||||||||||||||||||||||
| Significant litigation-related charges/benefits | 17 | 17 | 56 | (39 | ) | (0.06 | ) | |||||||||||||||||||||||||
| Gain/loss on sale of businesses | (2 | ) | (2 | ) | (3 | ) | 1 | - | ||||||||||||||||||||||||
| Q1 2020 adjusted amounts (non-GAAP measures) (a) | $ | 1,678 | 20.8 | % | $ | 1,603 | $ | 331 | 20.7 | % | $ | 1,270 | $ | 2.19 | ||||||||||||||||||
| Q1 2021 GAAP | $ | 1,994 | 22.5 | % | $ | 1,945 | $ | 319 | 16.4 | % | $ | 1,624 | $ | 2.77 | 23.1 | % | ||||||||||||||||
| Adjustments for special items: | ||||||||||||||||||||||||||||||||
| None | - | - | - | - | - | |||||||||||||||||||||||||||
| Q1 2021 adjusted amounts (non-GAAP measures) (a) | $ | 1,994 | 22.5 | % | $ | 1,945 | $ | 319 | 16.4 | % | $ | 1,624 | $ | 2.77 | 26.8 | % |
(a) In addition to reporting financial results in accordance with U.S. GAAP, the Company also provides non-GAAP measures that adjust for the impact of special items. Special items for the periods presented include the items described in the section entitled "Description of Special Items". Operating income (measure of segment operating performance), income before taxes, net income, earnings per share, and effective tax rate are all measures for which 3M provides the reported GAAP measure and a measure adjusted for special items. The adjusted measures are not in accordance with, nor are they a substitute for, GAAP measures. The Company considers these non-GAAP measures in evaluating and managing the Company's operations. The Company believes that discussion of results adjusted for these items is meaningful to investors as it provides a useful analysis of ongoing underlying operating trends. The determination of these items may not be comparable to similarly titled measures used by other companies.
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES - (CONTINUED)
| Three months ended | ||||||||
| March 31, | ||||||||
| Major GAAP Cash Flow Categories (dollars in millions) | 2021 | 2020 | ||||||
| Net cash provided by (used in) operating activities | $ | 1,688 | $ | 1,213 | ||||
| Net cash provided by (used in) investing activities | (369 | ) | (375 | ) | ||||
| Net cash provided by (used in) financing activities | (1,251 | ) | 1,108 |
| Full-Year 2021 | ||||
| Free cash flow (non-GAAP measure) (dollars in billions) | Forecast | |||
| Net cash provided by (used in) operating activities | $7.1 to $7.8 | |||
| Purchases of property, plant and equipment | ($1.8 to $2.0) | |||
| Free cash flow (b) | $5.1 to $6.0 | |||
| Net income attributable to 3M | $5.4 to $5.7 | |||
| Free cash flow conversion (b) | 95% to 105% |
| Three months ended | ||||||||
| March 31, | ||||||||
| Adjusted Free Cash Flow (non-GAAP measure) (dollars in millions) | 2021 | 2020 | ||||||
| Net cash provided by (used in) operating activities | $ | 1,688 | $ | 1,213 | ||||
| Purchases of property, plant and equipment | (310 | ) | (332 | ) | ||||
| Free cash flow | $ | 1,378 | $ | 881 | ||||
| Adjustments for special items: | ||||||||
| Significant litigation-related after-tax payment impacts | $ | 3 | $ | 50 | ||||
| TCJA transition tax payment | 9 | - | ||||||
| Divestiture-related restructuring after-tax payment impacts | 1 | - | ||||||
| Adjusted free cash flow (c) | $ | 1,391 | $ | 931 | ||||
| Net income attributable to 3M | $ | 1,624 | $ | 1,308 | ||||
| Adjustments for special items: | ||||||||
| Significant litigation-related charges/(benefits) | - | (39 | ) | |||||
| (Gain)/loss on sale of businesses | - | 1 | ||||||
| Adjusted net income attributable to 3M (a) | $ | 1,624 | $ | 1,270 | ||||
| Adjusted free cash flow conversion (c) | 86 | % | 73 | % |
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES - (CONTINUED)
| Adjusted EBITDA (non-GAAP measure) (d) | Adjusted EBITDA Margin (non-GAAP measure) (d) | |||||||||||||||
| Three months ended March 31, | Three months ended March 31, | |||||||||||||||
| (Dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Safety and Industrial | $ | 952 | $ | 818 | 28.6 | % | 27.9 | % | ||||||||
| Transportation and Electronics | 690 | 564 | 27.3 | 25.2 | ||||||||||||
| Health Care | 667 | 604 | 29.7 | 28.7 | ||||||||||||
| Consumer | 323 | 299 | 23.5 | 23.9 | ||||||||||||
| Corporate and Unallocated | (19 | ) | (54 | ) | ||||||||||||
| Elimination of Dual Credit | (159 | ) | (113 | ) | ||||||||||||
| Total Company | $ | 2,454 | $ | 2,118 | 27.7 | % | 26.2 | % |
| Three months ended | ||||||||
| Adjusted EBITDA (non-GAAP measure) (dollars in millions) | March 31, 2021 | March 31, 2020 | ||||||
| Net sales | $ | 8,851 | $ | 8,075 | ||||
| Net income attributable to 3M | 1,624 | 1,308 | ||||||
| Add/(subtract): | ||||||||
| Net income/(loss) attributable to noncontrolling interest | 3 | 2 | ||||||
| (Income)/loss from unconsolidated subsidiaries, net of taxes | (1 | ) | - | |||||
| Provision for income taxes | 319 | 278 | ||||||
| Other expense/(income): | ||||||||
| Interest (Income)/expense | 128 | 113 | ||||||
| Pension & OPEB non-service cost (benefit) | (79 | ) | (38 | ) | ||||
| Depreciation and amortization expense | 460 | 440 | ||||||
| Adjustments for special items: | ||||||||
| Significant litigation-related charges/(benefits) | - | 17 | ||||||
| (Gain)/loss on sale of businesses | - | (2 | ) | |||||
| Adjusted EBITDA (d) | $ | 2,454 | $ | 2,118 | ||||
| Adjusted EBITDA margin (d) | 27.7 | % | 26.2 | % |
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES - (CONTINUED)
| Adjusted EBITDA (non-GAAP measure) Three months ended March 31, 2021 (dollars in millions) | Safety and Industrial | Transportation and Electronics | Health Care | Consumer | Corporate and Unallocated | Elimination of Dual Credit | Total Company | |||||||||||||||||||||
| Net sales | $ | 3,327 | $ | 2,531 | $ | 2,248 | $ | 1,373 | $ | (2 | ) | $ | (626 | ) | $ | 8,851 | ||||||||||||
| Business segment operating income (measure of segment operating performance) | 811 | 591 | 509 | 289 | (47 | ) | (159 | ) | 1,994 | |||||||||||||||||||
| Add/(subtract): | ||||||||||||||||||||||||||||
| Depreciation and amortization | 141 | 99 | 158 | 34 | 28 | 460 | ||||||||||||||||||||||
| Adjustments for special items: | ||||||||||||||||||||||||||||
| None | ||||||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP measure) (d) | $ | 952 | $ | 690 | $ | 667 | $ | 323 | $ | (19 | ) | $ | (159 | ) | $ | 2,454 | ||||||||||||
| Adjusted EBITDA margin (non-GAAP measure) (d) | 28.6 | % | 27.3 | % | 29.7 | % | 23.5 | % | 27.7 | % |
| Adjusted EBITDA (non-GAAP measure) Three months ended March 31, 2020 (dollars in millions) | Safety and Industrial | Transportation and Electronics | Health Care | Consumer | Corporate and Unallocated | Elimination of Dual Credit | Total Company | |||||||||||||||
| Net sales | $ | 2,927 | $ | 2,239 | $ | 2,104 | $ | 1,250 | $ | - | $ | (445 | ) | $ | 8,075 | |||||||
| Business segment operating income (measure of segment operating performance) | 694 | 464 | 452 | 265 | (99 | ) | (113 | ) | 1,663 | |||||||||||||
| Add/(subtract): | ||||||||||||||||||||||
| Depreciation and amortization | 124 | 100 | 152 | 34 | 30 | 440 | ||||||||||||||||
| Adjustments for special items: | ||||||||||||||||||||||
| Significant litigation-related charges/(benefits) | 17 | 17 | ||||||||||||||||||||
| (Gain)/loss on sale of businesses | (2 | ) | (2 | ) | ||||||||||||||||||
| Adjusted EBITDA (non-GAAP measure) (d) | $ | 818 | $ | 564 | $ | 604 | $ | 299 | $ | (54 | ) | $ | (113 | ) | $ | 2,118 | ||||||
| Adjusted EBITDA margin (non-GAAP measure) (d) | 27.9 | % | 25.2 | % | 28.7 | % | 23.9 | % | 26.2 | % |
| March 31, | December 31, | |||||||
| Net Debt (non-GAAP measure) | 2021 | 2020 | ||||||
| Total debt | $ | 18,187 | $ | 18,795 | ||||
| Less: Cash, cash equivalents and marketable securities | 5,168 | 5,068 | ||||||
| Net debt (e) | $ | 13,019 | $ | 13,727 |
3M Company and Subsidiaries
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES - (CONTINUED)
Description of Special Items:
In addition to reporting financial results in accordance with U.S. GAAP, the Company also provides various non-GAAP measures that incorporate adjustments for the impacts of special items. Special items incorporated in the preparation of these non-GAAP measures for the periods presented include the items described below:
Significant litigation-related charges/benefits:
Gain/loss on sale of businesses:
Divestiture-related restructuring actions: