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Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
NOTE 16. Fair Value Measurements
3M follows ASC 820, Fair Value Measurements and Disclosures, with respect to assets and liabilities that are measured at fair value on a recurring basis and nonrecurring basis. Refer to Note 18 to the Consolidated Financial Statements in 3M's 2024 Annual Report on Form 10-K for a qualitative discussion of the assets and liabilities that are measured at fair value on a recurring and nonrecurring basis, a description of the valuation methodologies used by 3M, and categorization within the valuation framework of ASC 820.
The following table provides information by level for material assets and liabilities that are measured at fair value on a recurring basis at March 31, 2025 and December 31, 2024.
Fair value at
Fair value measurements using inputs considered as
Level 1Level 2Level 3
(Millions)
March 31, 2025December 31, 2024March 31, 2025December 31, 2024March 31, 2025December 31, 2024March 31, 2025December 31, 2024
Description
Assets:
Available-for-sale marketable securities:
Asset backed securities
$16 $24 $— $— $16 $24 $— $— 
Foreign corporate debt
8 31 — — 8 31 — — 
U.S. government securities
117 138 117 138 — — — — 
Corporate debt securities388 819 — — 388 819 — — 
Commercial paper70 658 — — 70 658 — — 
Certificates of deposit/time deposits17 185 — — 17 185 — — 
U.S. treasury securities78 269 78 269 — — — — 
U.S. municipal securities20 20 — — — — 20 20 
Solventum common stock2,613 2,270 2,613 2,270 — — — — 
Derivative instruments — assets:
Foreign currency forward/option contracts and cross-currency swaps113 142 — — 113 142 — — 
Liabilities:
Derivative instruments — liabilities:
Foreign currency forward/option contracts and cross-currency swaps 122 84 — — 122 84 — — 
Interest rate contracts67 81 — — 67 81 — — 
The Company had no material activity with level 3 assets and liabilities during the periods presented.
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 15 to the Consolidated Financial Statements in 3M's 2024 Annual Report on Form 10-K.
Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis: 3M had no material measurements at fair value on a nonrecurring basis of applicable assets or liabilities for the first quarters of 2025 and 2024.
Fair Value of Financial Instruments: The Company’s financial instruments include cash and cash equivalents, marketable securities, accounts receivable, certain investments, notes receivable, accounts payable, borrowings, and derivative contracts. The fair values of cash equivalents, accounts receivable, accounts payable, and short-term borrowings and current portion of long-term debt approximated carrying values because of the short-term nature of these instruments. The fair value of long-term notes receivable approximates the carrying value. Available-for-sale marketable securities and Solventum common stock are recorded at fair values as indicated in the preceding disclosures, in addition to certain investments and derivative instruments. To estimate fair values (classified as level 2) for its long-term debt, the Company utilized third-party quotes, which are derived all or in part from model prices, external sources, market prices, or the third-party’s internal records. Information with respect to the carrying amounts and estimated fair values of these financial instruments follow:
March 31, 2025December 31, 2024
(Millions)
Carrying value
Fair value
Carrying value
Fair value
Long-term debt, excluding current portion$12,307 $11,087 $11,125 $9,856 
The fair values reflected in the sections 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 certain fixed rate Eurobond securities issued by the Company as hedging instruments of the Company’s net investment in its European subsidiaries.