3M 2015 Annual Report Download - page 77

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TableofContents
NOTE9.MarketableSecurities
TheCompanyinvestsinagencysecurities,corporatesecurities,asset-backedsecuritiesandothersecurities.Thefollowingisa
summaryofamountsrecordedontheConsolidatedBalanceSheetformarketablesecurities(currentandnon-current).
 December31,  December31,
(Millions) 2015 2014 
   
U.S.governmentagencysecurities $ — $ 108 
Foreigngovernmentagencysecurities 10 95 
Corporatedebtsecurities 10 619 
Commercialpaper 12 — 
Certificatesofdeposit/timedeposits 26 41 
U.S.treasurysecurities   — 38 
U.S.municipalsecurities 3 — 
Asset-backedsecurities:    
Automobileloanrelated 26 282 
Creditcardrelated 10 162 
Equipmentleaserelated 2 48 
Other 19 46 
Asset-backedsecuritiestotal 57 538 
   
Currentmarketablesecurities $ 118 $ 1,439 
   
U.S.municipalsecurities $ 9 $ 15 
   
Non-currentmarketablesecurities $ 9 $ 15 
   
Totalmarketablesecurities $ 127 $ 1,454 
Classificationofmarketablesecuritiesascurrentornon-currentisbasedonthenatureofthesecuritiesandavailabilityforusein
currentoperations.AtDecember31,2015and2014,grossunrealizedgainsand/orlosses(pre-tax)werenotmaterial.RefertoNote
6foratablethatprovidesthenetrealizedgains(losses)relatedtosalesorimpairmentsofdebtandequitysecurities,whichincludes
marketablesecurities.Thegrossamountsoftherealizedgainsorlosseswerenotmaterial.Costofsecuritiessoldusethefirstin,first
out(FIFO)method.Sincethesemarketablesecuritiesareclassifiedasavailable-for-salesecurities,changesinfairvaluewillflow
throughothercomprehensiveincome,withamountsreclassifiedoutofothercomprehensiveincomeintoearningsuponsaleor
“other-than-temporary”impairment.
3MreviewsimpairmentsassociatedwithitsmarketablesecuritiesinaccordancewiththemeasurementguidanceprovidedbyASC
320,Investments-DebtandEquitySecurities,whendeterminingtheclassificationoftheimpairmentas“temporary”or“other-than-
temporary”.Atemporaryimpairmentchargeresultsinanunrealizedlossbeingrecordedintheothercomprehensiveincome
componentofshareholders’equity.Suchanunrealizedlossdoesnotreducenetincomeattributableto3Mfortheapplicable
accountingperiodbecausethelossisnotviewedasother-than-temporary.Thefactorsevaluatedtodifferentiatebetweentemporary
andother-than-temporaryincludetheprojectedfuturecashflows,creditratingsactions,andassessmentofthecreditqualityofthe
underlyingcollateral,aswellasotherfactors.
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