3M 2015 Annual Report Download - page 78

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TableofContents
ThebalanceatDecember31,2015,formarketablesecuritiesbycontractualmaturityareshownbelow.Actualmaturitiesmaydiffer
fromcontractualmaturitiesbecausetheissuersofthesecuritiesmayhavetherighttoprepayobligationswithoutprepayment
penalties.
(Millions)  December31,2015 
  
Dueinoneyearorless $ 52 
Dueafteroneyearthroughfiveyears 74 
Dueafterfiveyearsthroughtenyears 1 
Dueaftertenyears — 
Totalmarketablesecurities $ 127 
3Mhasadiversifiedmarketablesecuritiesportfolioof$127millionasofDecember31,2015.Withinthisportfolio,currentasset-
backedsecurities(estimatedfairvalueof$57million)primarilyincludeinterestsinautomobileloans,creditcardsandequipment
leases.3M’sinvestmentpolicyallowsinvestmentsinasset-backedsecuritieswithminimumcreditratingsofAa2byMoody’s
InvestorsServiceorAAbyStandard&Poor’sorFitchRatingsorDBRS.Asset-backedsecuritiesmustberatedbyatleasttwoofthe
aforementionedratingagencies,oneofwhichmustbeMoody’sInvestorsServiceorStandard&Poor’s.AtDecember31,2015,all
asset-backedsecurityinvestmentswereincompliancewiththispolicy.Approximately75.8percentofallasset-backedsecurity
investmentswereratedAAAorA-1+byStandard&Poor’sand/orAaaorP-1byMoody’sInvestorsServiceand/orAAAorF1+by
FitchRatings.Interestrateriskandcreditriskrelatedtotheunderlyingcollateralmayimpactthevalueofinvestmentsinasset-
backedsecurities,whilefactorssuchasgeneralconditionsintheoverallcreditmarketandthenatureoftheunderlyingcollateralmay
affecttheliquidityofinvestmentsinasset-backedsecurities.3Mdoesnotcurrentlyexpectriskrelatedtoitsholdinginasset-backed
securitiestomateriallyimpactitsfinancialconditionorliquidity.
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