3M Co. (MMM)

Analysis of Inventory

Difficulty: Advanced

Inventories are stated at the lower of cost or market, with cost generally determined on a first-in, first-out basis.

Source: 3M Co., Annual Report

3M Co., Statement of Financial Position, Inventory

USD $ in millions

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Finished goods	1,915	1,629	1,655	1,723	1,790
Work in process	1,218	1,039	1,008	1,081	1,139
Raw materials and supplies	901	717	855	902	935
Inventories	4,034	3,385	3,518	3,706	3,864

Source: Based on data from 3M Co. Annual Reports

Item	Description	The company
Finished goods	Carrying amount as of the balance sheet date of merchandise or goods held by the company that are readily available for sale.	3M Co.'s finished goods declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
Work in process	Carrying amount as of the balance sheet date of merchandise or goods which are partially completed, are generally comprised of raw materials, labor and factory overhead costs, and which require further materials, labor and overhead to be converted into finished goods, and which generally require the use of estimates to determine percentage complete and pricing.	3M Co.'s work in process increased from 2015 to 2016 and from 2016 to 2017.
Raw materials and supplies	Aggregated amount of unprocessed materials to be used in manufacturing or production process and supplies that will be consumed.	3M Co.'s raw materials and supplies declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
Inventories	Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer).	3M Co.'s inventories declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.