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94
Year ended December 31, 2012
Derivative and Nonderivative Instruments in Net Investment Hedging
Relationships
Pretax Gain (Loss)
Recognized as
Cumulative Translation
within Other
Comprehensive Income
on Effective Portion of
Instrument
Ineffective Portion of Gain (Loss) on
Instrument and Amount Excluded
from Effectiveness Testing
Recognized in Income
(Millions)
Amount
Location
Amount
Foreign currency denominated debt $
(29) N/A $
―
Total $
(29) $
―
Derivatives Not Designated as Hedging Instruments:
Derivatives not designated as hedging instruments include dedesignated foreign currency forward and option contracts
that formerly were designated in cash flow hedging relationships (as referenced in the Cash Flow Hedges section above).
In addition, 3M enters into foreign currency forward contracts to offset, in part, the impacts of certain intercompany
activities (primarily associated with intercompany licensing arrangements) and enters into commodity price swaps to
offset, in part, fluctuations in costs associated with the use of certain commodities and precious metals. These derivative
instruments are not designated in hedging relationships; therefore, fair value gains and losses on these contracts are
recorded in earnings. The dollar equivalent gross notional amount of these forward, option and swap contracts not
designated as hedging instruments totaled $6.6 billion as of December 31, 2014. The Company does not hold or issue
derivative financial instruments for trading purposes.
The location in the consolidated statements of income and amounts of gains and losses related to derivative instruments
not designated as hedging instruments are as follows:
Derivatives Not Designated as Hedging Instruments
Year ended December 31, 2014
Year ended December 31, 2013
Gain (Loss) on Derivative Recognized in
Income
Gain (Loss) on Derivative Recognized in
Income
(Millions)
Location
Amount
Location
Amount
Foreign currency forward/option contracts
Cost of sales $
10 Cost of sales $
20
Foreign currency forward contracts
Interest expense (40) Interest expense (43)
Commodity price swap contracts
Cost of sales ― Cost of sales (1)
Total
$
(30) $
(24)
Derivatives Not Designated as Hedging Instruments
Year ended December 31, 2012
Gain (Loss) on Derivative Recognized in
Income
(Millions)
Location
Amount
Foreign currency forward/option contracts
Cost of sales $
(24)
Foreign currency forward contracts
Interest expense 22
Total
$
(2)