3M 2013 Annual Report Download - page 92

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86
The following table sets forth a summary of changes in the fair values of the international 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
Total (Millions)
Beginning balance at Jan. 1, 2012
$
5 $ 39
$
67 $ 370
$
481
Net transfers into / (out of) level 3
― ― ― ― ―
Foreign currency exchange
― 2 (4) 2 ―
Purchases, sales, issuances, and
settlements, net
― (2) 11 92 101
Realized gain / (loss)
― ― ― ― ―
Change in unrealized gains / (losses)
relating to instruments sold during
the period
― ― ― ― ―
Change in unrealized gains / (losses)
relating to instruments still held at
the reporting date
― (3) (3) 21 15
Ending balance at Dec. 31, 2012
5 36 71 485 597
Net transfers into / (out of) level 3
― ― ― ― ―
Foreign currency exchange
― (2) (1) 9 6
Purchases, sales, issuances, and
settlements, net
― (2) 1 50 49
Realized gain / (loss)
― ― 2 ― 2
Change in unrealized gains / (losses)
relating to instruments sold during
the period
― ― ― 1 1
Change in unrealized gains / (losses)
relating to instruments still held at
the reporting date
― 5 2 5 12
Ending balance at Dec. 31, 2013
$
5 $ 37
$
75 $ 550
$
667
Postretirement Benefit Plans Assets
In order to achieve the investment objectives in the U.S. postretirement plan, the investment policy includes a target
strategic asset allocation. The investment policy allows some tolerance around the target in recognition that market
fluctuations and illiquidity of some investments may cause the allocation to a specific asset class to stray from the target
allocation, potentially for long periods of time. Acceptable ranges have been designed to allow for deviation from long-
term targets and to allow for the opportunity for tactical over- and under-weights. The portfolio will normally be rebalanced
when the quarter-end asset allocation deviates from acceptable ranges. The allocation is reviewed regularly by the named
fiduciary of the plan.