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84
The following table sets forth a summary of changes in the fair values of the U.S. pension plans’ level 3 assets for the
years ended December 31, 2013 and 2012:
Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
Equities
Fixed Income
Private
Equity
Absolute
Return
Commodities
Total (Millions)
Beginning balance at Jan. 1, 2012
$
442 $ 74
$
2,062 $ 520
$
105
$
3,203
Net transfers into / (out of) level 3
― (5) ― 472 ― 467
Purchases, sales, issuances, and
settlements, net
(1) (73) (108) (225) ― (407)
Realized gain / (loss)
― 25 120 76 ― 221
Change in unrealized gains / (losses)
relating to instruments sold during
the period
(1) (19) (3) (49) (1) (73)
Change in unrealized gains / (losses)
relating to instruments still held at
the reporting date
43 ― 65 71 3 182
Ending balance at Dec. 31, 2012
483 2 2,136 865 107 3,593
Net transfers into / (out of) level 3
― ― ― ― ― ―
Purchases, sales, issuances, and
settlements, net
(92) ― 54 (104) (96) (238)
Realized gain / (loss)
10 ― 126 45 (1) 180
Change in unrealized gains / (losses)
relating to instruments sold during
the period
(5) ― 3 (30) (10) (42)
Change in unrealized gains / (losses)
relating to instruments still held at
the reporting date
68 ― 108 (18) ― 158
Ending balance at Dec. 31, 2013
$
464 $ 2
$
2,427 $ 758
$
―
$
3,651
International Pension Plans Assets
Outside the U.S., pension plan assets are typically managed by decentralized fiduciary committees. The disclosure below
of asset categories is presented in aggregate for over 70 defined benefit plans in 24 countries; however, there is
significant variation in policy asset allocation from country to country. Local regulations, local funding rules, and local
financial and tax considerations are part of the funding and investment allocation process in each country. 3M’s Treasury
group provides standard funding and investment guidance to all international plans with more focused guidance to the
larger plans.
Each plan has its own strategic asset allocation. The asset allocations are reviewed periodically and rebalanced when
necessary.