3M 2014 Annual Report Download - page 97

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91
The amortization of losses referenced in the two preceding paragraphs is included in the tables below as part of the loss
recognized in income on the effective portion of derivatives as a result of reclassification from accumulated other
comprehensive income.
As of December 31, 2014, the Company had a balance of $99 million associated with the after tax net unrealized gain
associated with cash flow hedging instruments recorded in accumulated other comprehensive income. This includes a
remaining balance of $6 million (after tax loss) related to the forward starting interest rate swaps (discussed in the
preceding paragraphs), which will be amortized over the respective lives of the notes. Based on exchange rates as of
December 31, 2014, 3M expects to reclassify approximately $70 million (after tax) to earnings over the next 12 months
(with the impact offset by cash flows from underlying hedged items).
The location in the consolidated statements of income and comprehensive income and amounts of gains and losses
related to derivative instruments designated as cash flow hedges are provided in the following table. Reclassifications of
amounts from accumulated other comprehensive income into income include accumulated gains (losses) on
dedesignated hedges at the time earnings are impacted by the forecasted transaction.
Year Ended December 31, 2014
(Millions)
Pretax Gain (Loss)
Recognized in Other
Comprehensive
Income on Effective
Portion of Derivative
Pretax Gain (Loss) Recognized in
Income on Effective Portion of
Derivative as a Result of
Reclassification from
Accumulated Other
Comprehensive Income
Ineffective Portion of Gain
(Loss) on Derivative and
Amount Excluded from
Effectiveness Testing
Recognized in Income
Derivatives in Cash Flow Hedging Relationships
Amount
Location
Amount
Location
Amount
Foreign currency forward/option contracts
$
183
Cost of sales
$
3
Cost of sales
$
―
Commodity price swap contracts
(4)
Cost of sales
2
Cost of sales
―
Interest rate swap contracts
(8)
Interest expense
(1)
Interest expense
―
Total
$
171
$
4
$
―
Year Ended December 31, 2013
(Millions)
Pretax Gain (Loss)
Recognized in Other
Comprehensive
Income on Effective
Portion of Derivative
Pretax Gain (Loss) Recognized in
Income on Effective Portion of
Derivative as a Result of
Reclassification from
Accumulated Other
Comprehensive Income
Ineffective Portion of Gain
(Loss) on Derivative and
Amount Excluded from
Effectiveness Testing
Recognized in Income
Derivatives in Cash Flow Hedging Relationships
Amount
Location
Amount
Location
Amount
Foreign currency forward/option contracts
$
9
Cost of sales
$
(11)
Cost of sales
$
―
Foreign currency forward contracts
(108)
Interest expense
(108)
Interest expense
―
Commodity price swap contracts
1
Cost of sales
(2)
Cost of sales
―
Interest rate swap contracts
―
Interest expense
(1)
Interest expense
―
Total
$
(98)
$
(122)
$
―
Year Ended December 31, 2012
(Millions)
Pretax Gain (Loss)
Recognized in Other
Comprehensive
Income on Effective
Portion of Derivative
Pretax Gain (Loss) Recognized in
Income on Effective Portion of
Derivative as a Result of
Reclassification from
Accumulated Other
Comprehensive Income
Ineffective Portion of Gain
(Loss) on Derivative and
Amount Excluded from
Effectiveness Testing
Recognized in Income
Derivatives in Cash Flow Hedging Relationships
Amount
Location
Amount
Location
Amount
Foreign currency forward/option contracts
$
(35)
Cost of sales
$
41
Cost of sales
$
―
Foreign currency forward contracts
42
Interest expense
42
Interest expense
―
Commodity price swap contracts
(4)
Cost of sales
(10)
Cost of sales
―
Interest rate swap contracts
―
Interest expense
(1)
Interest expense
―
Total
$
3
$
72
$
―