Analysis of Debt
Total Debt (Carrying Amount)
3M Co., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
Total debt and finance lease liabilities exhibited a period of significant expansion followed by a gradual contraction between 2017 and 2021. The total carrying amount increased from US$ 14,022 million in 2017 to a peak of US$ 20,445 million in 2019, representing a substantial increase of approximately 45.8% over that two-year period. Subsequently, a downward trend emerged, with total liabilities decreasing to US$ 18,910 million in 2020 and further to US$ 17,463 million by the end of 2021.
- Long-Term Debt Obligations
- The primary driver of the total debt profile is long-term debt, excluding the current portion. This component grew from US$ 12,096 million in 2017 to a peak of US$ 17,989 million in 2020. The most significant expansion occurred between 2018 and 2019, where long-term debt rose by US$ 4,107 million. A reduction was observed in 2021, with the balance decreasing to US$ 16,056 million.
- Short-Term Borrowings and Current Portions
- Short-term liabilities demonstrated notable volatility. After a decrease in 2018, short-term borrowings and the current portion of long-term debt surged to US$ 2,795 million in 2019. This peak was followed by a sharp decline to US$ 806 million in 2020, before recovering to US$ 1,307 million in 2021.
- Finance Lease Liabilities
- Finance lease obligations, comprising both current and non-current portions, remained a marginal component of the total debt structure throughout the analyzed period. Combined lease liabilities increased from US$ 73 million in 2017 to a peak of US$ 132 million in 2019, eventually stabilizing at US$ 100 million by the end of 2021.
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Total Debt (Fair Value)
| Dec 31, 2021 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Short-term borrowings and current portion of long-term debt | 1,307) |
| Long-term debt, excluding current portion | 17,601) |
| Finance lease liabilities | 100) |
| Total debt and finance lease liabilities (fair value) | 19,008) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.09 |
Based on: 10-K (reporting date: 2021-12-31).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt and finance lease liabilities: 2.70%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 2.80% | 16,053) | 449) | |
| 1.43% | 1,294) | 19) | |
| 4.10% | 16) | 1) | |
| 3.30% | 100) | 3) | |
| Total | 17,463) | 472) | |
| 2.70% | |||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 472 ÷ 17,463 = 2.70%