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90
amortized over the five-year life of the note. 3M expects to reclassify a majority of the remaining balance to earnings over
the next 12 months (with the impact offset by cash flows from underlying hedged items).
The location in the consolidated statements of income and comprehensive income and amounts of gains and losses
related to derivative instruments designated as cash flow hedges are provided in the following table. Reclassifications of
amounts from accumulated other comprehensive income into income include accumulated gains (losses) on
dedesignated hedges at the time earnings are impacted by the forecasted transaction.
The Company revised amounts previously presented in the tables below for the pretax gain (loss) recognized in other
comprehensive income on effective portion of derivative (“Gain Recognized in OCI”) and the pretax gain (loss) recognized
in income on effective portion of derivative as a result of reclassification from accumulated other comprehensive income
(“Gain Reclassified into Income”) for the years ended December 31, 2012 and 2011 relative to foreign currency forward
contracts. These immaterial corrections increased both the previously presented amounts of the Gain Recognized in OCI
and the Gain Reclassified into Income in the disclosure tables below by $13 million and $11 million in 2012 and 2011,
respectively. The revisions had no impact on the Company’s consolidated results of operations or financial condition.
Year Ended December 31, 2013
(Millions)
Pretax Gain (Loss)
Recognized in Other
Comprehensive
Income on Effective
Portion of Derivative
Pretax Gain (Loss) Recognized in
Income on Effective Portion of
Derivative as a Result of
Reclassification from
Accumulated Other
Comprehensive Income
Ineffective Portion of Gain
(Loss) on Derivative and
Amount Excluded from
Effectiveness Testing
Recognized in Income
Derivatives in Cash Flow Hedging Relationships
Amount
Location
Amount
Location
Amount
Foreign currency forward/option
contracts
$
9
Cost of sales
$
(11)
Cost of sales
$
―
Foreign currency forward contracts
(108)
Interest expense
(108)
Interest expense
―
Commodity price swap contracts
1
Cost of sales
(2)
Cost of sales
―
Interest rate swap contracts
―
Interest expense
(1)
Interest expense
―
Total
$
(98)
$
(122)
$
―
Year Ended December 31, 2012
(Millions)
Pretax Gain (Loss)
Recognized in Other
Comprehensive
Income on Effective
Portion of Derivative
Pretax Gain (Loss) Recognized in
Income on Effective Portion of
Derivative as a Result of
Reclassification from
Accumulated Other
Comprehensive Income
Ineffective Portion of Gain
(Loss) on Derivative and
Amount Excluded from
Effectiveness Testing
Recognized in Income
Derivatives in Cash Flow Hedging Relationships
Amount
Location
Amount
Location
Amount
Foreign currency forward/option
contracts
$
(35)
Cost of sales
$
41
Cost of sales
$
―
Foreign currency forward contracts
42
Interest expense
42
Interest expense
―
Commodity price swap contracts
(4)
Cost of sales
(10)
Cost of sales
―
Interest rate swap contracts
―
Interest expense
(1)
Interest expense
―
Total
$
3
$
72
$
―
Year Ended December 31, 2011
(Millions)
Pretax Gain (Loss)
Recognized in Other
Comprehensive
Income on Effective
Portion of Derivative
Pretax Gain (Loss) Recognized in
Income on Effective Portion of
Derivative as a Result of
Reclassification from
Accumulated Other
Comprehensive Income
Ineffective Portion of Gain
(Loss) on Derivative and
Amount Excluded from
Effectiveness Testing
Recognized in Income
Derivatives in Cash Flow Hedging Relationships
Amount
Location
Amount
Location
Amount
Foreign currency forward/option
contracts
$
3
Cost of sales
$
(87)
Cost of sales
$
―
Foreign currency forward contracts
(31)
Interest expense
(30)
Interest expense
―
Commodity price swap contracts
(4)
Cost of sales
(6)
Cost of sales
―
Interest rate swap contracts
(7)
Interest expense
―
Interest expense
―
Total
$
(39)
$
(123)
$
―