3M 2015 Annual Report Download - page 89
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Thefairvaluesoftheassetsheldbythepostretirementbenefitplansbyassetclassareasfollows:
FairValueMeasurementsUsingInputsConsideredas FairValueat
(Millions) Level1 Level2 Level3 Dec.31,
AssetClass 2015 2014 2015 2014 2015 2014 2015 2014
Equities
U.S.equities $ 508 $ 565 $ — $ — $ — $ — $ 508 $ 565
Non-U.S.equities 59 56 — — — — 59 56
Indexandlong/shortequityfunds* 49 55
TotalEquities $ 567 $ 621 $ — $ — $ — $— $ 616 $ 676
FixedIncome
U.S.governmentsecurities $ 71 $ 68 $ 192 $ 186 $ — $ — $ 263 $ 254
Non-U.S.governmentsecurities — — 8 17 — — 8 17
U.S.corporatebonds — — 153 146 — — 153 146
Non-U.S.corporatebonds — — 35 34 — — 35 34
Derivativeinstruments — — 2 5 — — 2 5
Other* — 1
TotalFixedIncome $ 71 $ 68 $ 390 $ 388 $ — $— $ 461 $ 457
PrivateEquity
Derivativeinstruments $ — $ — $ — $ — $(4)$(3)$(4)$(3)
Growthequity 1 1 — — — — 1 1
Partnershipinvestments* 136 162
TotalPrivateEquity $ 1 $ 1 $ — $ — $(4)$(3)$ 133 $ 160
AbsoluteReturn
Fixedincomeandother $ 10 $ 1 $ 2 $ 2 $ — $ — $ 12 $ 3
Hedgefund/fundoffunds* 54 66
Partnershipinvestments* 14 10
TotalAbsoluteReturn $ 10 $ 1 $ 2 $ 2 $ — $— $ 80 $ 79
CashandCashEquivalents
Cashandcashequivalents $ 38 $ 33 $ — $ 3 $ — $ — $ 38 $ 36
Cashandcashequivalents,valuedatnetassetvalue* 30 20
TotalCashandCashEquivalents $ 38 $ 33 $ — $ 3 $ — $ — $ 68 $ 56
Total $ 687 $ 724 $ 392 $ 393 $(4)$(3)$ 1,358 $ 1,428
Otheritemstoreconciletofairvalueofplanassets $ 9 $ 8
Fairvalueofplanassets $ 1,367 $ 1,436
*InaccordancewithASC820-10,certaininvestmentsthataremeasuredatfairvalueusingthenetassetvaluepershare(orits
equivalent)asapracticalexpedienthavenotbeenclassifiedinthefairvaluehierarchy.TheNAVisbasedonthefairvalueofthe
underlyingassetsownedbythefund,minusitsliabilitiesthendividedbythenumberofunitsoutstandingandisdeterminedbythe
investmentmanagerorcustodianofthefund.Thefairvalueamountspresentedinthistableareintendedtopermitreconciliationof
thefairvaluehierarchytotheamountspresentedinthefairvalueofplanassets.
Publiclytradedequitiesarevaluedattheclosingpricereportedintheactivemarketinwhichtheindividualsecuritiesaretraded.
Fixedincomeincludesderivativeinstrumentssuchascreditdefaultswaps,interestrateswapsandfuturescontracts.Corporatedebt
includesbondsandnotes,assetbackedsecurities,collateralizedmortgageobligationsandprivateplacements.Swapsandderivative
instrumentsarevaluedbythecustodianusingclosingmarketswapcurvesandmarketderivedinputs.U.S.governmentand
governmentagencybondsandnotesarevaluedattheclosingpricereportedintheactivemarketinwhichtheindividualsecurityis
traded.Corporatebondsandnotes,assetbackedsecuritiesandcollateralizedmortgageobligationsarevaluedateithertheyields
currentlyavailableoncomparablesecuritiesofissuerswithsimilarcreditratingsorvaluedunderadiscountedcashflowapproach
thatutilizesobservableinputs,suchascurrentyieldsofsimilarinstruments,butincludesadjustmentsforcertainrisksthatmaynotbe
observablesuchascreditandliquidityrisks.Privateplacementsarevaluedbythecustodianusingrecognizedpricingservicesand
sources.
Theprivateequityportfolioisadiversifiedmixofderivativeinstruments,growthequityandpartnershipinterests.Derivative
investmentsarewrittenoptionsthatarevaluedbyindependentpartiesusingmarketinputsandvaluationmodels.Growthequity
investmentsarevaluedattheclosingpricereportedintheactivemarketinwhichtheindividualsecuritiesaretraded.
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