3M 2014 Annual Report Download - page 106

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100
Fair Value Measurements
(Millions) Fair Value at Using Inputs Considered as
Description
Dec. 31, 2013
Level 1
Level 2
Level 3
Assets:
Available-for-sale:
Marketable securities:
U.S. government agency securities $
234
$
―
$
234
$
―
Foreign government agency securities
125
―
125
―
Corporate debt securities
781
―
781
―
Certificates of deposit/time deposits
40
―
40
―
Commercial paper
60
―
60
―
Asset-backed securities:
Automobile loan related
585
―
585
―
Credit card related
180
―
180
―
Equipment lease related
67
―
67
―
Other
75
―
75
―
U.S. treasury securities
49
49
―
―
U.S. municipal securities
2
―
2
―
Auction rate securities
11
―
―
11
Investments
2
2
―
―
Derivative instruments — assets:
Foreign currency forward/option contracts
75
―
75
―
Commodity price swap contracts
1
―
1
―
Interest rate swap contracts
8
―
8
―
Liabilities:
Derivative instruments — liabilities:
Foreign currency forward/option contracts
103
―
103
―
Interest rate swap contracts
7
―
7
―
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 and certain U.S. municipal
securities only
2014
2013
2012
Beginning balance
$
11
$
7
$
4
Total gains or losses:
Included in earnings
(1)
―
―
Included in other comprehensive income
2
4
3
Purchases and issuances
15
―
―
Sales and settlements
(12)
―
―
Transfers in and/or out of level 3
―
―
―
Ending balance (December 31)
15
11
7
Change in unrealized gains or losses for the period included in
earnings for securities held at the end of the reporting period
―
―
―
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 10.
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. There were no material long-lived asset impairments for 2014, 2013 and
2012.