3M 2011 Annual Report Download - page 102

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96
(Millions)
Fair Value
at
Dec. 31,
Fair Value Measurements
Using Inputs Considered as
Description 2010 Level 1 Level 2 Level 3
A
ssets:
A
vailable-for-sale:
Marketable securities:
U.S. government agency securities ...... $ 309 $ — $ 309 $ —
Foreign government agency securities . 55 — 55 —
Corporate debt securities ...................... 472 — 472 —
Certificates of deposit/time deposits ..... 29 — 29 —
Commercial paper ................................. 55 — 55 —
Asset-backed securities:
Automobile loan related ..................... 397 — 397 —
Credit card related ............................. 149 — 149 —
Equipment lease related .................... 38 — 38 —
Other .................................................. 8 — 8 —
U.S. treasury securities ......................... 99 99
—
—
U.S. municipal securities ....................... 23 — 23 —
Auction rate securities ........................... 7 —
—
7
Investments .............................................. 21 21
—
—
Derivative instruments — assets:
Foreign currency forward/option contracts 38 36 2 —
Interest rate swap contracts ..................... 39 — 39 —
Liabilities:
Derivative instruments — liabilities:
Foreign currency forward/option contracts 82 82
—
—
Commodity price swap contracts .............. 5 5
—
—
The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on
a recurring basis in the table above that used significant unobservable inputs (Level 3).
(Millions)
Marketable securities — auction rate securities only 2011 2010 2009
Beginning balance ............................................................. $ 7
$ 5 $ 1
Total gains or losses:
Included in earnings .......................................................
—
— —
Included in other comprehensive income ...................... (3 ) 2 6
Purchases, issuances, and settlements ............................
—
— (2 )
Transfers in and/or out of Level 3 .....................................
—
— —
Ending balance (December 31) ........................................ 4
7 5
A
dditional losses included in earnings due to reclassifications
from other comprehensive income for:
Securities sold during the period ended December 31 .
—
— (2 )
Securities still held at December 31 ..............................
—
— —
In addition, the plan assets of 3M’s pension and postretirement benefit plans are measured at fair value on a
recurring basis (at least annually). Refer to Note 11.
Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis:
Disclosures are required for certain assets and liabilities that are measured at fair value, but are recognized and
disclosed at fair value on a nonrecurring basis in periods subsequent to initial recognition. For 3M, such
measurements of fair value relate primarily to long-lived asset impairments.
The following table provides information by level for assets and liabilities that were measured at fair value on a
nonrecurring basis. This table provides the fair value and amount of long-lived asset impairments for the periods
indicated. Refer to Note 1 (“Property, plant and equipment” and “Intangible Assets”) for further discussion of
accounting policies related to long-lived asset impairments.