Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

3M Co., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Short-term borrowings and current portion of long-term debt	1,307)	806)	2,795)	1,211)	1,853)
Accounts payable	2,994)	2,561)	2,228)	2,266)	1,945)
Accrued payroll	1,020)	747)	702)	749)	870)
Accrued income taxes	260)	300)	194)	243)	310)
Current operating lease liabilities	263)	256)	247)	—)	—)
Accrued rebates	731)	639)	594)	558)	516)
Deferred revenue	529)	498)	430)	617)	513)
Derivative liabilities	23)	81)	17)	32)	135)
Employee benefits and withholdings	219)	192)	229)	228)	208)
Contingent liability claims and other	487)	556)	566)	244)	179)
Property, sales-related and other taxes	326)	308)	247)	273)	277)
Pension and postretirement benefits	78)	71)	67)	76)	69)
Current obligations of finance leases	7)	22)	21)	17)	13)
Other	791)	911)	885)	730)	799)
Other current liabilities	3,191)	3,278)	3,056)	2,775)	2,709)
Current liabilities	9,035)	7,948)	9,222)	7,244)	7,687)
Long-term debt, excluding current portion	16,056)	17,989)	17,518)	13,411)	12,096)
Pension and postretirement benefits	2,870)	4,405)	3,911)	2,987)	3,620)
Noncurrent operating lease liabilities	591)	609)	607)	—)	—)
Long term income taxes payable	1,324)	1,511)	1,507)	1,274)	1,287)
Employee benefits	400)	410)	312)	299)	319)
Contingent liability claims and other	872)	815)	787)	789)	727)
Finance leases, net of current obligations	93)	93)	111)	75)	60)
Deferred income taxes	458)	333)	301)	279)	235)
Other	256)	300)	257)	294)	334)
Other liabilities	3,403)	3,462)	3,275)	3,010)	2,962)
Noncurrent liabilities	22,920)	26,465)	25,311)	19,408)	18,678)
Total liabilities	31,955)	34,413)	34,533)	26,652)	26,365)
Common stock par value, $.01 par value	9)	9)	9)	9)	9)
Additional paid-in capital	6,429)	6,162)	5,907)	5,643)	5,352)
Retained earnings	45,821)	43,761)	42,135)	40,636)	39,115)
Treasury stock, at cost	(30,463)	(29,404)	(29,849)	(29,626)	(25,887)
Accumulated other comprehensive loss	(6,750)	(7,661)	(8,139)	(6,866)	(7,026)
Total 3M Company shareholders’ equity	15,046)	12,867)	10,063)	9,796)	11,563)
Noncontrolling interest	71)	64)	63)	52)	59)
Total equity	15,117)	12,931)	10,126)	9,848)	11,622)
Total liabilities and equity	47,072)	47,344)	44,659)	36,500)	37,987)

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).

The overall capital structure exhibits a trend of expansion, with total liabilities and equity increasing from 37,987 million US dollars in 2017 to 47,072 million US dollars by 2021. While total liabilities peaked between 2019 and 2020, a subsequent reduction occurred in 2021, coinciding with a strengthening of the total equity position.

Liability Profile and Debt Trends: Total liabilities rose significantly from 26,365 million US dollars in 2017 to a peak of 34,533 million US dollars in 2019, before settling at 31,955 million US dollars in 2021. This volatility is primarily driven by long-term debt, which increased from 12,096 million US dollars in 2017 to 17,989 million US dollars in 2020, representing a substantial expansion of long-term borrowing before a partial reduction in 2021. Noncurrent liabilities followed a similar trajectory, peaking in 2020 at 26,465 million US dollars.
Current Obligations and Liquidity Components: Current liabilities demonstrated a general upward trend, increasing from 7,687 million US dollars in 2017 to 9,035 million US dollars in 2021. A notable consistent increase is observed in accounts payable, which grew from 1,945 million US dollars to 2,994 million US dollars over the period. Short-term borrowings remained volatile, with a significant spike to 2,795 million US dollars in 2019 followed by a sharp decline to 806 million US dollars in 2020, suggesting active short-term liquidity management.
Equity and Capital Allocation: Total equity experienced a dip in 2018 but recovered strongly to reach 15,117 million US dollars by 2021. Retained earnings showed consistent annual growth, rising from 39,115 million US dollars in 2017 to 45,821 million US dollars in 2021, indicating sustained profitability. However, this growth was partially offset by an aggressive treasury stock program; the cost of treasury stock increased from 25,887 million US dollars in 2017 to 30,463 million US dollars in 2021, reflecting significant capital returned to shareholders via share buybacks.
Other Long-term Obligations: Pension and postretirement benefit obligations showed considerable fluctuation, peaking at 4,405 million US dollars in 2020 before dropping sharply to 2,870 million US dollars in 2021. Contingent liability claims also remained a persistent factor, with noncurrent claims increasing steadily from 727 million US dollars in 2017 to 872 million US dollars in 2021.

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3M Co. (NYSE:MMM)

Balance Sheet: Liabilities and Stockholders’ Equity