What are the main changes in 3M's financial reporting disclosed in this 8-K?

3M is updating its measure of segment operating performance and its calculations for certain non-GAAP measures. A key change is the expansion of 'special item' adjustments to include sales and income estimates related to manufactured PFAS products, along with associated exit costs. These changes are effective from the first quarter of 2023.

When will investors see these new reporting measures in official filings?

The company will begin reporting comparative results under the new segment operating performance measure with its Quarterly Report on Form 10-Q for the quarter ending March 31, 2023. The information provided in this 8-K, based on these updated measures prior to the Q1 10-Q, is considered non-GAAP.

Why is 3M providing this updated financial information now if it's non-GAAP?

3M is furnishing this supplemental information because it believes it is useful for investors to understand the impacts of these methodological changes on historical periods in a timely manner, as they prepare to evaluate the company's future results under the new basis.

Does this filing provide updated financial results for the most recent quarter?

No, this 8-K does not provide updated financial results for a specific past quarter. Instead, it furnishes supplemental unaudited historical information that has been restated or adjusted to reflect the upcoming changes in reporting methodologies that will be implemented in Q1 2023. It serves as a preview rather than a results announcement.

MMM 8-K: Earnings & Results

Summary

3M Company (MMM) filed an 8-K on February 21, 2023, to furnish updated supplemental unaudited historical financial information. This update is primarily driven by changes in how 3M measures segment operating performance and in the calculation of certain non-GAAP financial measures. Notably, the company is expanding its adjustments for 'special items' to include the impact of sales, estimates of income, and associated costs related to manufactured Per- and Polyfluoroalkyl Substances (PFAS) products. These reporting changes will be fully implemented starting in the first quarter of 2023, with comparative results expected in the Q1 2023 10-Q filing. Until then, the provided information on the updated basis is considered non-GAAP. Investors should note that while this filing provides a preview of how historical data will be presented under the new methodologies, these figures are not yet in compliance with U.S. GAAP. The company is proactively furnishing this data to help stakeholders understand the potential impacts of these methodological shifts as they assess future financial performance. A significant portion of the filing also reiterates the extensive risks and uncertainties the company faces, including those related to PFAS liabilities, economic conditions, and ongoing strategic initiatives like the healthcare business spin-off.

Key Highlights

13M is updating its segment operating performance measure and non-GAAP financial calculations, effective Q1 2023.
2Adjustments for 'special items' will now explicitly include PFAS-related sales, income estimates, and costs.
3The company is furnishing updated historical financial information on a non-GAAP basis to aid investor understanding of these changes.
4Full reporting under the new segment performance measure will begin with the Q1 2023 10-Q filing.
5The filing emphasizes substantial risks and uncertainties, including those related to PFAS liabilities.
6Forward-looking statements section highlights significant risks from economic conditions, geopolitical events, and strategic actions.
7The report includes information on the voluntary Chapter 11 proceedings for the company's Aearo Entities.

3M CO 8-K Report, Financial Results (Feb 21, 2023)

Summary

Key Highlights

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