3M and PFAS; forever chemicals and finite liabilities

3M has entered into an agreement with plaintiffs on the multi-district litigation (MDL) for their aqueous film forming foam (AFFF). Overall, we think this is a very positive development. Among the main areas of ongoing litigation (the MDL, NRD / state AG, international lawsuits, and litigation with insurance providers on coverage), we believed the MDL was likely the source of most uncertainty and overhang. 3M's ability to bound this with clear, predictable cashflows covering 99% of current personal injury claims is a positive because it also means there is a broader end in sight for the company's broader liability to PFAS. The present value of the PFAS payments is expected to be ~$5.8B; while meaningfully higher than the $1-1.5B we had forecasted earlier, the spread-out nature of the payments (with nothing material until 2028 and payments extending through 2034) minimizes any existential or default risk. The company simultaneously announced a $6B share repurchase and a quarterly divide