Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

3M Co., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net sales	35,355)	32,184)	32,136)	32,765)	31,657)
Cost of sales	(18,795)	(16,605)	(17,136)	(16,682)	(16,001)
Gross profit	16,560)	15,579)	15,000)	16,083)	15,656)
Selling, general and administrative expenses	(7,197)	(6,929)	(7,029)	(7,602)	(6,572)
Research, development and related expenses	(1,994)	(1,878)	(1,911)	(1,821)	(1,850)
Gain on sale of businesses	—)	389)	114)	547)	586)
Operating income	7,369)	7,161)	6,174)	7,207)	7,820)
Interest expense	(488)	(529)	(448)	(350)	(322)
Interest income	26)	29)	80)	70)	50)
Pension and postretirement net periodic benefit benefit	297)	50)	68)	73)	—)
Loss on deconsolidation of Venezuelan subsidiary	—)	—)	(162)	—)	—)
Other income (expense), net	(165)	(450)	(462)	(207)	(272)
Income before income taxes	7,204)	6,711)	5,712)	7,000)	7,548)
Provision for income taxes	(1,285)	(1,318)	(1,130)	(1,637)	(2,679)
Income of consolidated group	5,919)	5,393)	4,582)	5,363)	4,869)
Income (loss) from unconsolidated subsidiaries, net of taxes	10)	(5)	—)	—)	—)
Net income including noncontrolling interest	5,929)	5,388)	4,582)	5,363)	4,869)
Net income attributable to noncontrolling interest	(8)	(4)	(12)	(14)	(11)
Net income attributable to 3M	5,921)	5,384)	4,570)	5,349)	4,858)

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).

Over the analyzed period, net sales exhibited a generally positive trend with an increase from 31,657 million US dollars in 2017 to 35,355 million US dollars in 2021, despite a slight decline in 2019 and 2020. Cost of sales rose steadily from -16,001 million to -18,795 million US dollars, reflecting higher input or production costs.

Gross profit showed fluctuation but overall increased from 15,656 million in 2017 to 16,560 million US dollars in 2021. The gross profit margin experienced some variability, impacted in part by fluctuations in cost of sales.

Selling, general and administrative expenses rose from -6,572 million in 2017 to -7,197 million US dollars in 2021, peaking in 2018. Research, development and related expenses displayed relatively stable figures around -1,850 to -1,994 million US dollars, indicating consistent investment in innovation.

Gains on sale of businesses diminished significantly, falling from 586 million in 2017 to negligible amounts by 2021, with no recorded gain in the final year. Operating income reflected these dynamics, decreasing from 7,820 million in 2017 to a low of 6,174 million in 2019, before improving to 7,369 million US dollars by 2021.

Interest expense increased from -322 million in 2017 to a peak of -529 million in 2020, then decreased slightly to -488 million in 2021, while interest income remained relatively low and decreased after 2019.

The pension and postretirement benefit expense showed a notable rise in 2021, reaching 297 million US dollars compared to minor figures in preceding years. A one-time loss on deconsolidation of a Venezuelan subsidiary was recorded in 2019 (-162 million), contributing to lower income that year.

Other income (expense), net, generally reflected a negative contribution, though less severe in 2021 (-165 million) compared to previous years.

Income before income taxes declined from 7,548 million in 2017 to 5,712 million in 2019, then recovered to 7,204 million US dollars in 2021. The provision for income taxes decreased overall from -2,679 million to -1,285 million US dollars, implying a lower effective tax rate or improved tax efficiency.

Income of the consolidated group and net income including noncontrolling interest followed a similar pattern to operating income and income before taxes, declining through 2019 before rising through 2021. Net income attributable to the company showed an increase from 4,858 million US dollars in 2017 to 5,921 million US dollars in 2021, despite the dip in intermediate years, indicating overall profitability improvement.

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3M Co. (NYSE:MMM)

Income Statement