v3.26.1
Fair Value Measurements and Marketable Securities
 6 Months Ended
Jun. 30, 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 June 30, 2026 and December 31, 2025.
Fair value atFair value measurements using inputs considered as
Level 1Level 2Level 3
(Millions)June 30,
2026		December 31,
2025		June 30,
2026		December 31,
2025		June 30,
2026		December 31,
2025		June 30,
2026		December 31,
2025
Assets:
Available-for-sale marketable securities:
Corporate debt$201 $302 $— $— $201 $302 $— $— 
Commercial paper37 191 — — 37 191 — — 
U.S. government and treasury securities5 53 5 53 — — — — 
Asset backed securities and certificates of/time deposits128 148 — — 128 148 — — 
U.S. municipal securities16 16 — — — — 16 16 
Total marketable securities387 710 5 53 366 641 16 16 
Solventum common stock (a)
1,973 2,026 1,973 2,026 — — — — 
Derivative instruments(b)
233 192 — — 233 192 — — 
Liabilities:
Derivative instruments(c)
323 330 — — 323 330 — — 
(a)     Solventum common stock is reflected within other current assets on 3M's Consolidated Balance Sheet.
(b)    Derivative assets are reflected within other current assets or other assets on 3M's Consolidated Balance Sheet.
(c)     Derivative liabilities are reflected within other current liabilities or other liabilities on 3M's Consolidated Balance Sheet.
The Company had no material activity with level 3 assets and liabilities during the periods presented.
Marketable Securities: At June 30, 2026 and December 31, 2025, gross unrealized, gross realized, and net realized gains and/or losses (pre-tax) were not material.
The balances at June 30, 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 $321 
Due after one year through five years 66 
Total marketable securities $387 
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 second quarter and first six months 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 was similarly valued until the close of the transaction in April 2026. 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:
June 30, 2026December 31, 2025
(Millions)Carrying value
Fair value
Carrying value
Fair value
Long-term debt, excluding current portion$10,904 $9,793 $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 foreign exchange rates on non-U.S. dollar denominated debt.