Name: 3M Co. (NYSE:MMM) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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3M Co., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income including noncontrolling interest	5,929)	5,388)	4,582)	5,363)	4,869)
Depreciation and amortization	1,915)	1,911)	1,593)	1,488)	1,544)
Company pension and postretirement contributions	(180)	(156)	(210)	(370)	(967)
Company pension and postretirement expense	206)	406)	357)	410)	333)
Stock-based compensation expense	274)	262)	278)	302)	324)
Gain on sale of businesses	—)	(389)	(111)	(545)	(586)
Deferred income taxes	(166)	(165)	(273)	(57)	107)
Loss on deconsolidation of Venezuelan subsidiary	—)	—)	162)	—)	—)
Accounts receivable	(122)	165)	345)	(305)	(245)
Inventories	(903)	(91)	370)	(509)	(387)
Accounts payable	518)	252)	(117)	408)	24)
Accrued income taxes, current and long-term	(244)	132)	205)	134)	967)
Changes in assets and liabilities	(751)	458)	803)	(272)	359)
Other, net	227)	398)	(111)	120)	257)
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities	1,525)	2,725)	2,488)	1,076)	1,371)
Net cash provided by operating activities	7,454)	8,113)	7,070)	6,439)	6,240)
Purchases of property, plant and equipment (PP&E)	(1,603)	(1,501)	(1,699)	(1,577)	(1,373)
Proceeds from sale of PP&E and other assets	51)	128)	123)	262)	49)
Acquisitions, net of cash acquired	—)	(25)	(4,984)	13)	(2,023)
Purchases of marketable securities and investments	(2,202)	(1,579)	(1,635)	(1,828)	(2,152)
Proceeds from maturities and sale of marketable securities and investments	2,406)	1,811)	1,443)	2,497)	1,354)
Proceeds from sale of businesses, net of cash sold	—)	576)	236)	846)	1,065)
Other, net	31)	10)	72)	9)	(6)
Net cash (used in) provided by investing activities	(1,317)	(580)	(6,444)	222)	(3,086)
Change in short-term debt, net	(2)	(143)	(316)	(284)	578)
Repayment of debt, maturities greater than 90 days	(1,144)	(3,482)	(2,716)	(1,034)	(962)
Proceeds from debt, maturities greater than 90 days	1)	1,750)	6,281)	2,251)	1,987)
Purchases of treasury stock	(2,199)	(368)	(1,407)	(4,870)	(2,068)
Proceeds from issuance of treasury stock pursuant to stock option and benefit plans	639)	429)	547)	485)	734)
Dividends paid to shareholders	(3,420)	(3,388)	(3,316)	(3,193)	(2,803)
Other, net	(20)	(98)	(197)	(56)	(121)
Net cash used in financing activities	(6,145)	(5,300)	(1,124)	(6,701)	(2,655)
Effect of exchange rate changes on cash and cash equivalents	(62)	48)	(2)	(160)	156)
Net increase (decrease) in cash and cash equivalents	(70)	2,281)	(500)	(200)	655)
Cash and cash equivalents at beginning of year	4,634)	2,353)	2,853)	3,053)	2,398)
Cash and cash equivalents at end of year	4,564)	4,634)	2,353)	2,853)	3,053)

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 cash flow profile from 2017 to 2021 reflects a company with strong operational cash generation, strategic shifts in investment, and a consistent commitment to shareholder distributions.

Operating Cash Flow Trends: Net cash provided by operating activities demonstrated a general upward trajectory for most of the period, increasing from 6,240 million US$ in 2017 to a peak of 8,113 million US$ in 2020, before settling at 7,454 million US$ in 2021. This growth was supported by a steady rise in net income, which climbed from 4,869 million US$ in 2017 to 5,929 million US$ in 2021. Non-cash adjustments remained significant, with depreciation and amortization increasing from 1,544 million US$ in 2017 to 1,915 million US$ in 2021, indicating continued investment in a large asset base.
Investment Strategy and Capital Expenditure: Capital expenditures for property, plant, and equipment remained relatively consistent, fluctuating between 1,373 million US$ and 1,699 million US$ annually. A significant deviation occurred in 2019, where net cash used in investing activities surged to 6,444 million US$, primarily driven by 4,984 million US$ in net acquisitions. This indicates a period of aggressive inorganic growth. Additionally, the company realized cash inflows from the sale of businesses between 2017 and 2020, which partially offset these investment outflows.
Financing and Shareholder Returns: Financing activities were consistently negative, reflecting a priority on returning capital to shareholders. Dividends paid showed a steady annual increase, rising from 2,803 million US$ in 2017 to 3,420 million US$ in 2021. Share repurchases were more volatile, peaking at 4,870 million US$ in 2018 and reaching 2,199 million US$ in 2021. Debt management fluctuated to support these activities and acquisitions; notably, in 2019, 6,281 million US$ in proceeds from debt were utilized, coinciding with the peak in acquisition spending.
Liquidity and Cash Position: The ending cash and cash equivalents balance exhibited volatility but ended the period in a stronger position than it began. From a starting balance of 2,398 million US$ in 2017, the company ended 2021 with 4,564 million US$. The most substantial increase occurred in 2020, where a net increase of 2,281 million US$ was recorded, significantly bolstering the liquidity position heading into 2021.

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