3M 2010 Annual Report Download - page 104

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98
(Millions)
Fair Value
at
Dec. 31,
Fair Value Measurements
Using Inputs Considered as
Description
2009
Level 1
Level 2
Level 3
Assets:
Available-for-sale:
Marketable securities:
U.S. government agency securities ............
$
491
$
—
$
491
$
—
Corporate debt securities ............................
266
—
266
—
Asset-backed securities:
Automobile loan related ...........................
515
—
515
—
Credit card related ...................................
107
—
107
—
Equipment lease related ..........................
70
—
70
—
Other ........................................................
13
—
13
—
U.S. treasury securities ...............................
94
94
—
—
Auction rate securities .................................
5
—
—
5
Other securities ...........................................
8
—
8
—
Investments ....................................................
11
11
—
—
Derivative instruments — assets:
Foreign currency forward/option contracts .....
23
22
1
—
Commodity price swap contracts ....................
2
2
—
—
Interest rate swap contracts ...........................
54
—
54
—
Liabilities:
Derivative instruments — liabilities:
Foreign currency forward/option contracts .....
93
93
—
—
Commodity price swap contracts ....................
1
1
—
—
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
2010
2009
2008
Beginning balance .............................................................
$
5
$
1
$
16
Total gains or losses:
Included in earnings .......................................................
—
—
(3
)
Included in other comprehensive income ......................
2
6
(12
)
Purchases, issuances, and settlements ............................
—
(2
)
—
Transfers in and/or out of Level 3 .....................................
—
—
—
Ending balance (December 31) ........................................
7
5
1
Additional 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 ..............................
—
—
(6
)
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. During 2010 and 2009,
such measurements of fair value related primarily to long-lived asset impairments in 2009.
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.