3M 2015 Annual Report Download - page 78
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Please find page 78 of the 2015 3M annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.TableofContents
ThebalanceatDecember31,2015,formarketablesecuritiesbycontractualmaturityareshownbelow.Actualmaturitiesmaydiffer
fromcontractualmaturitiesbecausetheissuersofthesecuritiesmayhavetherighttoprepayobligationswithoutprepayment
penalties.
(Millions) December31,2015
Dueinoneyearorless $ 52
Dueafteroneyearthroughfiveyears 74
Dueafterfiveyearsthroughtenyears 1
Dueaftertenyears —
Totalmarketablesecurities $ 127
3Mhasadiversifiedmarketablesecuritiesportfolioof$127millionasofDecember31,2015.Withinthisportfolio,currentasset-
backedsecurities(estimatedfairvalueof$57million)primarilyincludeinterestsinautomobileloans,creditcardsandequipment
leases.3M’sinvestmentpolicyallowsinvestmentsinasset-backedsecuritieswithminimumcreditratingsofAa2byMoody’s
InvestorsServiceorAAbyStandard&Poor’sorFitchRatingsorDBRS.Asset-backedsecuritiesmustberatedbyatleasttwoofthe
aforementionedratingagencies,oneofwhichmustbeMoody’sInvestorsServiceorStandard&Poor’s.AtDecember31,2015,all
asset-backedsecurityinvestmentswereincompliancewiththispolicy.Approximately75.8percentofallasset-backedsecurity
investmentswereratedAAAorA-1+byStandard&Poor’sand/orAaaorP-1byMoody’sInvestorsServiceand/orAAAorF1+by
FitchRatings.Interestrateriskandcreditriskrelatedtotheunderlyingcollateralmayimpactthevalueofinvestmentsinasset-
backedsecurities,whilefactorssuchasgeneralconditionsintheoverallcreditmarketandthenatureoftheunderlyingcollateralmay
affecttheliquidityofinvestmentsinasset-backedsecurities.3Mdoesnotcurrentlyexpectriskrelatedtoitsholdinginasset-backed
securitiestomateriallyimpactitsfinancialconditionorliquidity.
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