v3.26.1
Fair Value Measurements and Marketable Securities
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Marketable Securities
Note 14. Fair Value Measurements and Marketable Securities
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 16 to the Consolidated Financial Statements in 3M's 2025 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, 2026 and December 31, 2025.
Fair value atFair value measurements using inputs considered as
Level 1Level 2Level 3
(Millions)March 31,
2026		December 31,
2025		March 31,
2026		December 31,
2025		March 31,
2026		December 31,
2025		March 31,
2026		December 31,
2025
Assets:
Available-for-sale marketable securities:
Marketable securities:
Corporate debt$234 $302 $— $— $234 $302 $— $— 
Commercial paper54 191 — — 54 191 — — 
U.S. government and treasury securities8 53 8 53 — — — — 
Asset backed securities and certificates of/time deposits119 148 — — 119 148 — — 
U.S. municipal securities16 16 — — — — 16 16 
Total marketable securities431 710 8 53 407 641 16 16 
Solventum common stock (a)
1,670 2,026 1,670 2,026 — — — — 
Derivative instruments — assets:
Foreign currency forward/option contracts and cross-currency swaps232 192 — — 232 192 — — 
Liabilities:
Derivative instruments — liabilities:
Foreign currency forward/option contracts and cross-currency swaps 297 330 — — 297 330 — — 
(a)     Solventum common stock is reflected within other current assets on 3M's Consolidated Balance Sheet as of March 31, 2026 and December 31, 2025.
The Company had no material activity with level 3 assets and liabilities during the periods presented.
Marketable Securities: At March 31, 2026 and December 31, 2025, gross unrealized, gross realized, and net realized gains and/or losses (pre-tax) were not material.
The balances at March 31, 2026 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) 
Due in one year or less $310 
Due after one year through five years 121 
Total marketable securities $431 
Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis: Other than the below, 3M had no material measurements at fair value on a nonrecurring basis of applicable assets or liabilities for the first quarter of 2026 and 2025.
In the third quarter of 2025, 3M's precision grinding and finishing business was classified as held for sale and written down to its fair value less costs to sell. Fair value was determined based upon terms of the underlying agreement entered into to sell the business. The disposal group continues to be similarly valued until the close of the transaction. See Note 3 for additional information on the disposal group.
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, Solventum common stock and derivative instruments are recorded at fair values as indicated in the preceding disclosures, in addition to certain investments. 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, 2026December 31, 2025
(Millions)Carrying value
Fair value
Carrying value
Fair value
Long-term debt, excluding current portion$10,906 $9,716 $10,932 $9,889 
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 foreign exchange rates on non-U.S. dollar denominated debt.