3M 2015 Annual Report Download - page 101

TableofContents
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).
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(Millions)          
Marketablesecurities—certainU.S.municipalsecuritiesandauctionrate        
securitiesonly 2015 2014 2013 
Beginningbalance  $ 15  $ 11  $ 7 
Totalgainsorlosses:       
Includedinearnings   —   (1)  — 
Includedinothercomprehensiveincome   —   2   4 
Purchasesandissuances   —   15   — 
Salesandsettlements   (3)  (12)  — 
Transfersinand/oroutoflevel3   —   —   — 
Endingbalance   12   15   11 
       
Changeinunrealizedgainsorlossesfortheperiodincludedinearningsfor
securitiesheldattheendofthereportingperiod   —   —   — 
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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.
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AssetsandLiabilitiesthatareMeasuredatFairValueonaNonrecurringBasis:
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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2015,2014and2013.
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FairValueofFinancialInstruments:
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TheCompany’sfinancialinstrumentsincludecashandcashequivalents,marketablesecurities,accountsreceivable,certain
investments,accountspayable,borrowings,andderivativecontracts.Thefairvaluesofcashandcashequivalents,accounts
receivable,accountspayable,andshort-termborrowingsandcurrentportionoflong-termdebt(exceptthemedium-termfixedrate
notestotaling$1billion,whichwillmatureinSeptember2016andareshownseparatelyinthetablebelow)approximatedcarrying
valuesbecauseoftheshort-termnatureoftheseinstruments.Available-for-salemarketablesecuritiesandinvestments,inadditionto
certainderivativeinstruments,arerecordedatfairvaluesasindicatedintheprecedingdisclosures.Foritslong-termdebt,the
Companyutilizedthird-partyquotestoestimatefairvalues(classifiedaslevel2).Informationwithrespecttothecarryingamounts
andestimatedfairvaluesofthesefinancialinstrumentsfollow:
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December31,2015 December31,2014 
 Carrying  Fair  Carrying  Fair 
(Millions) Value Value Value Value 
Medium-termfixedratenotedueSeptember2016(long-termin
2014andshort-termin2015)  $ 999 $ 1,003  $ 996  $ 1,014 
Long-termdebt,excludingcurrentportionandmedium-termfixed
ratenotedueSeptember2016   8,753   9,101   5,709   6,189 
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Thefairvaluesreflectedaboveconsiderthetermsoftherelateddebtabsenttheimpactsofderivative/hedgingactivity.Thecarrying
amountoflong-termdebtreferencedaboveisimpactedbycertainfixed-to-floatinginterestrateswapsthataredesignatedasfair
valuehedgesandbythedesignationoffixedrateEurobondsecuritiesissuedbytheCompanyashedginginstrumentsofthe
Company’snetinvestmentinitsEuropeansubsidiaries.Manyof3M’sfixed-ratebondsweretradingatapremiumatDecember31,
2015and2014duetothelowinterestratesandtighteningof3M’screditspreads.
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