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3M Co. (MMM) Announces Settlement with Public Water Suppliers to Address PFAS in Drinking Water Received Final Court Approval

April 1, 2024 6:45 AM

3M (NYSE: MMM) today announced that on Friday, March 29, the company's previously announced settlement agreement with U.S. public water suppliers (PWS) received final approval from the U.S. District Court in Charleston, South Carolina.

The now-finalized agreement will support PWS that detect PFAS at any level or may do so in the future and will benefit U.S.-based PWS that provide drinking water to Americans across the country. The agreement received overwhelming support and participation from U.S. PWS, and the court resolved the small number of objections that were raised in favor of the settlement.

"This is yet another important step forward for 3M as we continue to deliver on our priorities. The final approval of this settlement and continued progress toward exiting all PFAS manufacturing by the end of 2025 will further our efforts to reduce risk and uncertainty as we move forward," said 3M chairman and CEO Mike Roman.

As previously disclosed, 3M recorded an accrual of $10.3 billion for this matter, which reflects the pre-tax present value of the expected payments over 13 years under the agreement. Payments under the agreement are scheduled to begin in the third quarter of 2024, provided there are no pending appeals of the final approval order. 3M also continues to actively engage in insurance recovery activities.

The table below sets forth the expected pre-tax payments that 3M would make assuming the nominal $12.5B settlement cap is reached.

Pre-Tax Payments ($B)

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

Total

PFAS PWS Settlement

0.1

2.9

1.8

0.4

2.6

1.6

0.6

0.6

0.6

0.5

0.4

0.2

0.2

0.2

12.5

Additional details of the agreement, including the agreed-upon payment schedule, are available on the Settlement Administrator's website and in 3M's filings with the Securities and Exchange Commission.

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