3M Co. (MMM) Resolves PFAS-Related Claims with the State of New Jersey

3M (NYSE: MMM) has reached an agreement that resolves all legacy claims related to the Chambers Works site in Salem County, New Jersey, currently owned by The Chemours Company and, before that, by DuPont. In addition, the settlement extends to PFAS-related claims that the State of New Jersey and its departments have, or may in the future have, against 3M.

This agreement is another important step toward reducing risk and uncertainty on these legacy issues, allowing 3M to focus on its strategic priorities. In 2000, 3M announced it was voluntarily exiting PFOA and PFOS manufacturing and, in 2022, that it would discontinue all PFAS manufacturing by the end of 2025. 3M remains on track to do so.

In the agreement, the State specifically recognized that 3M "has taken actions, which other companies have not taken, to cease manufacturing" PFAS.

The company remains focused on creating shareholder value and positioning 3M for success by driving profitable growth, embedding a culture of operational excellence across the enterprise, and advancing our capital allocation priorities.

Chambers Works
This was a case brought by the State of New Jersey seeking damages for contamination emanating from a site owned for decades by DuPont and now owned by The Chemours Company. Multiple contaminants other than PFAS are alleged to be at issue over many years. Historically, 3M supplied PFAS to DuPont at the site but discontinued that supply in 2001.

Statewide Claims
While resolving legacy PFAS claims related to the Chambers Works site, 3M also used the opportunity to resolve broader statewide PFAS claims that the State and its departments have, or may in the future have, against 3M. The agreement provides finality and certainty for these claims without further litigation.

This agreement is not an admission of liability. If the agreement is not approved by the court or certain agreed terms are not fulfilled, 3M is prepared to continue to defend itself in litigation.

Financial Considerations
Under the terms of the agreement, 3M has agreed to contribute amounts payable over 25 years. The payment structure provides predictable cash flow with payments aligned to reflect other company obligations.

3M expects to record a pre-tax charge of approximately $285 million in the second quarter of 2025 and intends to reflect as an adjustment in arriving at results. This pre-tax charge includes:

• $210 million for the settlement for Chamber Works and other elements of the settlement.
• $75 million for existing and future PFAS-related claims by the State representing the present value of payments starting in 2030 and running through 2050.

Additional details will be included in 3M's filings with the Securities and Exchange Commission and on the investor relations website at https://investors.3m.com.

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