Loss on extinguishment of debt

[Table of](#i7860c65eab2647ffbae7e3867c1cf525_7) [Contents](#i7860c65eab2647ffbae7e3867c1cf525_7)Divestiture-Related RestructuringDuring the third quarter of 2022, following the Food Safety Division split-off transaction and combination with Neogen completed in September 2022 (see Note 3) management approved and committed to undertake certain restructuring actions addressing corporate functional costs across 3M in relation to the magnitude of amounts previously allocated to the divested business.These actions affected approximately 850 positions worldwide and resulted in a third quarter 2022 pre-tax charge of $41 million, within Corporate and Unallocated. The divestiture-related restructuring actions were recorded in the income statement as follows:

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
| (Millions) |  | Third Quarter 2022 |
| Cost of sales |  | $ | 3 |
| Selling, general and administrative expenses |  | 36 |
| Research, development and related expenses |  | 2 |
| Total operating income impact |  | $ | 41 |

Divestiture-related restructuring actions, including cash impacts, follow:

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
| (Millions) |  | Employee-Related |
| Expense incurred in the third quarter of 2022 |  | 41  |  |
| Cash payments |  | (3) |  |
| Accrued restructuring action balances as of September 30, 2022 |  | $ | 38  |  |

Remaining activities related to this divestiture-related restructuring are expected to be largely completed through the first half of 2023.NOTE 6. Supplemental Income Statement InformationOther expense (income), net consists of the following:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Three months endedSeptember 30, |  | Nine months endedSeptember 30, |
| (Millions) |  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Interest expense |  | $ | 106 |  | $ | 117 |  | $ | 347 |  | $ | 370 |
| Interest income |  | (17) |  |  | (6) |  |  | (36) |  |  | (18) |  |
| Pension and postretirement net periodic benefit cost (benefit) |  | (65) |  |  | (80) |  |  | (199) |  |  | (239) |  |
| Total |  | $ | 24 |  | $ | 31 |  | $ | 112 |  | $ | 113 |

Interest expense includes an early debt extinguishment pre-tax charge of approximately $11 million in the first quarter of 2021.Pension and postretirement net periodic benefit costs described in the table above include all components of defined benefit plan net periodic benefit costs except service cost, which is reported in various operating expense lines. Refer to Note 11 for additional details on the components of pension and postretirement net periodic benefit costs.NOTE 7. Supplemental Equity and Comprehensive Income InformationCash dividends declared and paid totaled $1.49 and $1.48 per share for the first, second, and third quarters of 2022 and 2021, respectively, or $4.47 and $4.44 per share for the first nine months of 2022 and 2021, respectively.14
