Industrial conglomerate 3M (NYSE: MMM) took a massive $10.3 billion pre-tax charge in the second quarter related to a proposed settlement over PFAS chemicals in U.S. water systems. While that total will be payable over 13 years, the impact on generally accepted accounting principles (GAAP) earnings was concentrated in Q2.

This proposed settlement greatly reduces the uncertainty surrounding 3M's PFAS liability, which is good news for long-term investors. Excluding the impact of this settlement, 3M's Q2 results were better than expected.

Total revenue sank 4.4% year over year to $8.32 billion, beating the average analyst estimate by $440 million. Adjusted earnings per share (EPS), which exclude the PFAS settlement, came in at $2.17, a full $0.41 higher than analysts were expecting.

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Source Fool.com