3M CO | 2013 | FY | 3

The fair values of the assets held by the U.S. pension plans by asset class are as follows:
                           
    Fair Value Measurements Using Inputs Considered as Fair Value at
(Millions) Level 1 Level 2 Level 3 Dec. 31,
Asset Class 2013 2012 2013 2012 2013 2012 2013 2012
Equities                   
 U.S. equities $ 1,595 $ 1,662 $ 3 $ 11 $ 3 $ 5 $ 1,601 $ 1,678
 Non-U.S. equities   1,324   1,332   1   ―   ―   ―   1,325   1,332
 Derivatives   ―   ―   ―   5   ―   ―   ―   5
 EAFE index funds   ―   ―   ―   250   ―   ―   ―   250
 Index funds   ―   ―   151   156   1   1   152   157
 Long/short equity   ―   ―   ―   ―   460   477   460   477
Total Equities $ 2,919 $ 2,994 $ 155 $ 422 $ 464 $ 483 $ 3,538 $ 3,899
Fixed Income                        
 U.S. government securities $ 908 $ 844 $ 601 $ 796 $ ― $ ― $ 1,509 $ 1,640
 Non-U.S. government                        
  securities   20   ―   316   378   ―   ―   336   378
 Preferred and convertible                        
  securities   ―   4   4   ―   ―   ―   4   4
 U.S. corporate bonds   14   196   2,046   1,249   ―   ―   2,060   1,445
 Non-U.S. corporate bonds   ―   ―  412  286   ―   ―   412   286
 Asset-backed securities   ―   ―  26  21   ―   ―   26   21
 Collateralized mortgage                        
  obligations   ―   ―   28   43   ―   ―   28   43
 Private placements   ―   ―  251  164  2  2   253   166
 Derivative instruments   (1)   ―   6   76   ―   ―   5   76
 Other   ―   ―   37   29   ―   ―   37   29
Total Fixed Income $ 941 $ 1,044 $ 3,727 $ 3,042 $ 2 $ 2 $ 4,670 $ 4,088
Private Equity                        
 Buyouts $ ― $ ― $ ― $ ― $ 737 $ 662 $ 737 $ 662
 Derivative instruments   ―   ―   ―   ―   (97)   (51)   (97)   (51)
 Direct investments   ―   ―   ―   ―   467   129   467   129
 Distressed debt   ―   ―   ―   ―   211   301   211   301
 Growth equity   21   7   ―   ―   170   84   191   91
 Mezzanine   ―   ―   ―   ―   83   82   83   82
 Real estate   ―   ―   ―   ―   156   136   156   136
 Secondary   ―   ―   ―   ―   152   166   152   166
 Venture capital   ―   ―   ―   ―   548   627   548   627
Total Private Equity $ 21 $ 7 $ ― $ ― $ 2,427 $ 2,136 $ 2,448 $ 2,143
Absolute Return                        
 Hedge funds and hedge fund of                        
  funds $ ― $ ― $ 176 $ 833 $ 21 $ 664 $ 197 $ 1,497
 Bank loan and other fixed                        
  income funds   ―   ―   899   ―   737   201   1,636   201
Total Absolute Return $ ― $ ― $ 1,075 $ 833 $ 758 $ 865 $ 1,833 $ 1,698
Commodities $ ― $ ― $ 88 $ 102 $ ― $ 107 $ 88 $ 209
Cash and Cash Equivalents $ 301 $ 429 $ 1,017 $ 1,547 $ ― $ ― $ 1,318 $ 1,976
Total $ 4,182 $ 4,474 $ 6,062 $ 5,946 $ 3,651 $ 3,593 $ 13,895 $ 14,013
Other items to reconcile to fair                        
 value of plan assets                   $ (6) $ (232)
Fair value of plan assets                   $ 13,889 $ 13,781

us-gaap:ScheduleOfAllocationOfPlanAssetsTableTextBlock

The fair values of the assets held by the international pension plans by asset class are as follows:
                           
    Fair Value Measurements Using Inputs Considered as Fair Value at
(Millions) Level 1 Level 2 Level 3 Dec. 31,
Asset Class 2013 2012 2013 2012 2013 2012 2013 2012
Equities                   
 Growth equities $ 733 $ 628 $ 190 $ 133 $ ― $ ― $ 923 $ 761
 Value equities   653   468   14   23   ―   ―   667   491
 Core equities   19   88   668   376   5   5   692   469
Total Equities $ 1,405 $ 1,184 $ 872 $ 532 $ 5 $ 5 $ 2,282 $ 1,721
Fixed Income                        
 Domestic government debt $ 199 $ 297 $ 539 $ 694 $ 3 $ ― $ 741 $ 991
 Foreign government debt   28   170   657   445   1   2   686   617
 Corporate debt securities   1   ―   638   630   20   18   659   648
 Mortgage backed debt   ―   ―   75   31   ―   ―   75   31
 Other debt obligations   ―   ―   391   268   13   16   404   284
Total Fixed Income $ 228 $ 467 $ 2,300 $ 2,068 $ 37 $ 36 $ 2,565 $ 2,571
Private Equity                        
 Private equity funds $ ― $ ― $ ― $ ― $ 22 $ 22 $ 22 $ 22
 Real estate   3   3   87   42   53   49   143   94
Total Private Equity $ 3 $ 3 $ 87 $ 42 $ 75 $ 71 $ 165 $ 116
Absolute Return                        
 Hedge funds $ ― $ ― $ 62 $ 75 $ 56 $ 50 $ 118 $ 125
 Insurance   ―   ―   ―   ―   492   433   492   433
 Derivatives   2   ―   3   20   ―   ―   5   20
 Other   ―   ―   2   24   2   2   4   26
Total Absolute Return $ 2 $ ― $ 67 $ 119 $ 550 $ 485 $ 619 $ 604
Cash and Cash Equivalents $ 112 $ 211 $ 14 $ 21 $ ― $ ― $ 126 $ 232
Total $ 1,750 $ 1,865 $ 3,340 $ 2,782 $ 667 $ 597 $ 5,757 $ 5,244
Other items to reconcile to fair                        
 value of plan assets                   $ 1 $ (22)
Fair value of plan assets                   $ 5,758 $ 5,222

us-gaap:ScheduleOfAllocationOfPlanAssetsTableTextBlock

The fair values of the assets held by the postretirement benefit plans by asset class are as follows:
                           
    Fair Value Measurements Using Inputs Considered as Fair Value at
(Millions) Level 1 Level 2 Level 3 Dec. 31,
Asset Class 2013 2012 2013 2012 2013 2012 2013 2012
Equities                   
 U.S. equities $ 552 $ 466 $ ― $ ― $ ― $ ― $ 552 $ 466
 Non-U.S. equities   58   54   ―   ―   ―   ―   58   54
 EAFE index funds   ―   ―   ―   8   ―   ―   ―   8
 Index funds   ―   ―   44   42   ―   ―   44   42
 Long/short equity   ―   ―   ―   ―   16   16   16   16
Total Equities $ 610 $ 520 $ 44 $ 50 $ 16 $ 16 $ 670 $ 586
Fixed Income                        
 U.S. government securities $ 62 $ 63 $ 202 $ 217 $ ― $ ― $ 264 $ 280
 Non-U.S. government                        
  securities   1   ―   14   16   ―   ―   15   16
 U.S. corporate bonds   ―   6   96   68   ―   ―   96   74
 Non-U.S. corporate bonds   ―   ―   21   16   ―   ―   21   16
 Asset-backed securities   ―   ―   9   6   ―   ―   9   6
 Collateralized mortgage                        
  obligations   ―   ―   5   4   ―   ―   5   4
 Private placements   ―   ―   16   11   ―   ―   16   11
 Derivative instruments   ―   ―   ―   2   ―   ―   ―   2
 Other   ―   ―   1   1   ―   ―   1   1
Total Fixed Income $ 63 $ 69 $ 364 $ 341 $ ― $ ― $ 427 $ 410
Private Equity                        
 Buyouts $ ― $ ― $ ― $ ― $ 58 $ 51 $ 58 $ 51
 Derivative instruments   ―   ―   ―   ―   (3)   (2)   (3)   (2)
 Direct investments   ―   ―   ―   ―   16   4   16   4
 Distressed debt   ―   ―   ―   ―   7   11   7   11
 Growth equity   1   ―   ―   ―   6   3   7   3
 Mezzanine   ―   ―   ―   ―   3   3   3   3
 Real estate   ―   ―   ―   ―   5   4   5   4
 Secondary   ―   ―   ―   ―   5   5   5   5
 Venture capital   ―   ―   ―   ―   64   91   64   91
Total Private Equity $ 1 $ ― $ ― $ ― $ 161 $ 170 $ 162 $ 170
Absolute Return                        
 Hedge funds and hedge fund of                        
  funds $ ― $ ― $ 6 $ 27 $ 1 $ 21 $ 7 $ 48
 Bank loan and other fixed                        
  income funds   ―   ―   31   ―   25   7   56   7
Total Absolute Return $ ― $ ― $ 37 $ 27 $ 26 $ 28 $ 63 $ 55
Commodities $ ― $ ― $ 3 $ 3 $ ― $ 4 $ 3 $ 7
Cash and Cash Equivalents $ 35 $ 51 $ 34 $ 50 $ ― $ ― $ 69 $ 101
Total $ 709 $ 640 $ 482 $ 471 $ 203 $ 218 $ 1,394 $ 1,329
Other items to reconcile to fair                        
 value of plan assets                   $ 11 $ (8)
Fair value of plan assets                   $ 1,405 $ 1,321

us-gaap:ScheduleOfAllocationOfPlanAssetsTableTextBlock

   Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
   Equities Fixed Income Private Equity Absolute Return Commodities Total
(Millions)            
Beginning balance at Jan. 1, 2012 $ 442 $ 74 $ 2,062 $ 520 $ 105 $ 3,203
Net transfers into / (out of) level 3   ―   (5)   ―   472   ―   467
Purchases, sales, issuances, and                  
 settlements, net   (1)   (73)   (108)   (225)   ―   (407)
Realized gain / (loss)   ―   25   120   76   ―   221
Change in unrealized gains / (losses)                  
 relating to instruments sold during                  
 the period   (1)   (19)   (3)   (49)   (1)   (73)
Change in unrealized gains / (losses)                  
 relating to instruments still held at                  
 the reporting date   43   ―   65   71   3   182
Ending balance at Dec. 31, 2012   483   2   2,136   865   107   3,593
Net transfers into / (out of) level 3   ―   ―   ―   ―   ―   ―
Purchases, sales, issuances, and                  
 settlements, net   (92)   ―   54   (104)   (96)   (238)
Realized gain / (loss)   10   ―   126   45   (1)   180
Change in unrealized gains / (losses)                  
 relating to instruments sold during                  
 the period   (5)   ―   3   (30)   (10)   (42)
Change in unrealized gains / (losses)                  
 relating to instruments still held at                  
 the reporting date   68   ―   108   (18)   ―   158
Ending balance at Dec. 31, 2013 $ 464 $ 2 $ 2,427 $ 758 $ ― $ 3,651

us-gaap:ScheduleOfEffectOfSignificantUnobservableInputsChangesInPlanAssetsTableTextBlock

   Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
   Equities Fixed Income Private Equity Absolute Return Total
(Millions)          
Beginning balance at Jan. 1, 2012 $ 5 $ 39 $ 67 $ 370 $ 481
Net transfers into / (out of) level 3   ―   ―   ―   ―   ―
Foreign currency exchange   ―   2   (4)   2   ―
Purchases, sales, issuances, and               
 settlements, net   ―   (2)   11   92   101
Realized gain / (loss)   ―   ―   ―   ―   ―
Change in unrealized gains / (losses)               
 relating to instruments sold during               
 the period   ―   ―   ―   ―   ―
Change in unrealized gains / (losses)               
 relating to instruments still held at               
 the reporting date   ―   (3)   (3)   21   15
Ending balance at Dec. 31, 2012   5   36   71   485   597
Net transfers into / (out of) level 3   ―   ―   ―   ―   ―
Foreign currency exchange   ―   (2)   (1)   9   6
Purchases, sales, issuances, and               
 settlements, net   ―   (2)   1   50   49
Realized gain / (loss)   ―   ―   2   ―   2
Change in unrealized gains / (losses)               
 relating to instruments sold during               
 the period   ―   ―   ―   1   1
Change in unrealized gains / (losses)               
 relating to instruments still held at               
 the reporting date   ―   5   2   5   12
Ending balance at Dec. 31, 2013 $ 5 $ 37 $ 75 $ 550 $ 667

us-gaap:ScheduleOfEffectOfSignificantUnobservableInputsChangesInPlanAssetsTableTextBlock

   Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
   Equities Fixed Income Private Equity Absolute Return Commodities Total
(Millions)            
Beginning balance at Jan. 1, 2012 $ 14 $ 2 $ 187 $ 17 $ 4 $ 224
Net transfers into / (out of) level 3   ―   ―   ―   15   ―   15
Purchases, sales, issuances, and                  
 settlements, net   ―   (2)   (27)   (7)   ―   (36)
Realized gain / (loss)   ―   1   11   2   ―   14
Change in unrealized gains / (losses)                  
 relating to instruments sold during                  
 the period   ―   (1)   (4)   (1)   ―   (6)
Change in unrealized gains / (losses)                  
 relating to instruments still held at                  
 the reporting date   2   ―   3   2   ―   7
Ending balance at Dec. 31, 2012   16   ―   170   28   4   218
Net transfers into / (out of) level 3   ―   ―   ―   ―   ―   ―
Purchases, sales, issuances, and                  
 settlements, net   (3)   ―   (27)   (4)   (4)   (38)
Realized gain / (loss)   ―   ―   10   2   ―   12
Change in unrealized gains / (losses)                  
 relating to instruments sold during                  
 the period   ―   ―   (3)   (1)   ―   (4)
Change in unrealized gains / (losses)                  
 relating to instruments still held at                  
 the reporting date   3   ―   11   1   ―   15
Ending balance at Dec. 31, 2013 $ 16 $ ― $ 161 $ 26 $ ― $ 203

us-gaap:ScheduleOfEffectOfSignificantUnobservableInputsChangesInPlanAssetsTableTextBlock