3M 2012 Annual Report Download - page 101
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95
Location and Fair Value Amount of Derivative Instruments
The following tables summarize the fair value of 3M’s derivative instruments, excluding nonderivative instruments used as
hedging instruments, and their location in the consolidated balance sheet. Additional information with respect to the fair
value of derivative instruments is included in Note 12.
December 31, 2012
(Millions)
Assets
Liabilities
Fair Value of Derivative Instruments
Location
Amount
Location
Amount
Derivatives designated as hedging instruments
Foreign currency forward/option contracts
Other current assets
$
39
Other current liabilities
$
85
Commodity price swap contracts
Other current assets
―
Other current liabilities
1
Interest rate swap contracts
Other assets
23
Other liabilities
―
Total derivatives designated as
hedging instruments
$
62
$
86
Derivatives not designated as hedging instruments
Foreign currency forward/option contracts
Other current assets
$
10
Other current liabilities
$
20
Total derivatives not designated as
hedging instruments
$
10
$
20
Total derivative instruments
$
72
$
106
December 31, 2011
(Millions)
Assets
Liabilities
Fair Value of Derivative Instruments
Location
Amount
Location
Amount
Derivatives designated as hedging instruments
Foreign currency forward/option contracts
Other current assets
$
82
Other current liabilities
$
34
Commodity price swap contracts
Other current assets
―
Other current liabilities
7
Interest rate swap contracts
Other assets
28
Other liabilities
―
Total derivatives designated as
hedging instruments
$
110
$
41
Derivatives not designated as hedging instruments
Foreign currency forward/option contracts
Other current assets
$
25
Other current liabilities
$
8
Total derivatives not designated as
hedging instruments
$
25
$
8
Total derivative instruments
$
135
$
49
Currency Effects
Currency Effects: 3M estimates that year-on-year currency effects, including hedging impacts, decreased net income
attributable to 3M by approximately $103 million in 2012 and increased net income attributable to 3M by approximately
$154 million in 2011. These estimates include the effect of translating profits from local currencies into U.S. dollars; the
impact of currency fluctuations on the transfer of goods between 3M operations in the United States and abroad; and
transaction gains and losses, including derivative instruments designed to reduce foreign currency exchange rate risks
and the negative impact of swapping Venezuelan bolivars into U.S. dollars. 3M estimates that year-on-year derivative and
other transaction gains and losses increased net income attributable to 3M by approximately $49 million in 2012 and had
an immaterial impact on net income attributable to 3M in 2011.