3M Co., balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Land	312)	338)	351)	340)	348)
Buildings and leasehold improvements	8,086)	8,021)	7,877)	7,564)	7,681)
Machinery and equipment	17,305)	16,866)	16,586)	15,776)	15,907)
Construction in progress	1,510)	1,425)	1,310)	1,193)	843)
Capital leases	—)	—)	—)	—)	135)
Gross property, plant and equipment	27,213)	26,650)	26,124)	24,873)	24,914)
Accumulated depreciation	(17,784)	(17,229)	(16,791)	(16,135)	(16,048)
Property, plant and equipment, net	9,429)	9,421)	9,333)	8,738)	8,866)

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Item	Description	The company
Gross property, plant and equipment	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	3M Co. gross property, plant and equipment increased from 2019 to 2020 and from 2020 to 2021.
Property, plant and equipment, net	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	3M Co. property, plant and equipment, net increased from 2019 to 2020 and from 2020 to 2021.

3M Co., asset age ratios

		Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
	Average age ratio	66.11%	65.48%	65.15%	65.77%	65.33%

Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	3M Co. average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in millions)
Accumulated depreciation	17,784)	17,229)	16,791)	16,135)	16,048)
Gross property, plant and equipment	27,213)	26,650)	26,124)	24,873)	24,914)
Land	312)	338)	351)	340)	348)
Asset Age Ratio
Average age¹	66.11%	65.48%	65.15%	65.77%	65.33%

2021 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Gross property, plant and equipment – Land)
= 100 × 17,784 ÷ (27,213 – 312) = 66.11%

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Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	3M Co. average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021.

3M Co. (NYSE:MMM)

Analysis of Property, Plant and Equipment