Repayment of principal amount

[Table of](#i7860c65eab2647ffbae7e3867c1cf525_7) [Contents](#i7860c65eab2647ffbae7e3867c1cf525_7)The total amounts of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of September 30, 2022 and December 31, 2021 are $997 million and $1,112 million, respectively. The decrease in unrecognized tax benefits includes a decrease associated with the resolution of the 2017 IRS audit. It is reasonably possible that the amount of unrecognized tax benefits could significantly change within the next 12 months. At this time, the Company is not able to estimate the range by which these potential events could impact 3M’s unrecognized tax benefits in the next 12 months. As of September 30, 2022 and December 31, 2021, the Company had valuation allowances of $114 million and $142 million on its deferred tax assets, respectively.NOTE 9. Marketable SecuritiesThe Company invests in asset-backed securities, certificates of deposit/time deposits, commercial paper, and other securities. The following is a summary of amounts recorded on the Consolidated Balance Sheet for marketable securities (current and non-current).

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions) |  | September 30,2022 |  | December 31,2021 |
|  |  |  |  |  |
| Commercial paper  |  | $ | 130  |  |  | $ | 109  |  |
| Certificates of deposit/time deposits  |  | 52  |  |  | 14  |  |
| U.S. treasury securities  |  | —  |  |  | 75  |  |
| U.S. municipal securities |  | 3  |  |  | 3  |  |
| Current marketable securities |  | 185  |  |  | 201  |  |
|  |  |  |  |  |
| U.S. municipal securities  |  | 27  |  |  | 27  |  |
| Non-current marketable securities |  | 27  |  |  | 27  |  |
|  |  |  |  |  |
| Total marketable securities |  | $ | 212  |  |  | $ | 228  |  |

At September 30, 2022 and December 31, 2021, gross unrealized, gross realized, and net realized gains and/or losses (pre-tax) were not material. The balances at September 30, 2022 for marketable securities by contractual maturity are shown below. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
| (Millions) |   | September 30,2022 |
| Due in one year or less  |  | $ | 185  |  |
| Due after one year through five years  |  | 15  |  |
| Due after five years through ten years  |  | 12  |  |
| Total marketable securities  |  | $ | 212  |  |

NOTE 10. Long-Term Debt and Short-Term BorrowingsIn February 2022, 3M repaid 500 million euros aggregate principal amount of fixed-rate medium-term notes that matured. In June 2022, 3M repaid $600 million aggregate principal amount of fixed-rate medium-term notes that matured. 2021 issuances, maturities, and extinguishments of short- and long-term debt are described in Note 5 to the Consolidated Financial Statements in 3M's Current Report on Form 8-K dated April 26, 2022 (which updated 3M’s 2021 Annual Report on Form 10-K).The Company had no commercial paper outstanding at September 30, 2022 and December 31, 2021.19
