3M 2006 Annual Report Download - page 90

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Components of net periodic benefit cost Qualified and Non-qualified Postretirement
and other amounts recognized in other Pension Benefits Benefits
comprehensive income United States International
(Millions) 2006 2005 2004 2006 2005 2004 2006 2005 2004
Net periodic benefit cost  
Service cost $ 196 $ 177 $ 164 $ 124 $ 102 $ 101 $ 58 $ 53 $ 52
Interest cost 539 502 483 183 177 166
104 101 100
Expected return on plan assets (764) (665) (627) (245) (217) (202) (103) (93) (87)
Amortization of transition (asset) obligation ± ± ± 345 ± ± ±
Amortization of prior service cost (benefit) 13 13 14
(3) (3) (2) (50) (39) (39)
Amortization net actuarial (gain) loss 202 179 159 63 58 43 84 84 84
Net periodic benefit cost $ 186 $ 206 $ 193 $ 125 $ 121 $ 111 $ 93 $106 $110
Settlements, curtailments, special
termination benefits and other 32 6 21 4  ± ±  ±  ±
Net periodic benefit cost after settlements,
curtailments, special termination benefits
and other $ 218 $ 212 $ 214 $ 129 $ 119 $ 111 $ 93 $106 $110
The estimated amortization from accumulated other comprehensive income into net periodic benefit cost in 2007
follows:
Qualified and Non-qualified
Pension Benefits
Postretirement
Benefits
Amounts expected to be amortized from
accumulated other comprehensive income
into net periodic benefit costs over next
fiscal year as of December 31, 2006
(Millions) United States International
Amortization of transition (asset) obligation $ ± $ 3 $ ±
Amortization of prior service cost (benefit) 14 (3) (72)
Amortization of net actuarial (gain) loss 126 53 75
$140 $53 $ 3
Other supplemental information for the years ended December 31 follows:
Qualified and Non-qualified Postretirement
Pension Benefits Benefits
Weighted-average assumptions used United States International
to determine benefit obligations 2006 2005 2004 2006 2005 2004 2006 2005 2004
Discount rate 5.75% 5.50% 5.75% 4.88% 4.50% 4.88% 5.75% 5.50% 5.75%
Compensation rate increase 4.30% 4.30% 4.30% 3.67% 3.52% 3.55%
4.30% 4.30% 4.30%

Weighted-average assumptions used 
to determine net cost for years ended 2006 2005 2004 2006 2005 2004
2006 2005 2004
Discount rate 5.50% 5.75% 6.00% 4.50% 4.88% 4.95% 5.50% 5.75% 6.00%
Expected return on assets 8.75% 8.75% 9.00% 7.20% 7.08% 7.09% 8.60% 8.60% 9.39%
Compensation rate increase 4.30% 4.30% 4.30% 3.52% 3.55% 3.46% 4.30% 4.30% 4.30%
As of December 31, 2005, the Company converted to the RP (Retirement Plans) 2000 Mortality Table for calculating
the year-end 2005 U.S. pension and postretirement obligations and 2006 expense. The impact of this change
increased the year-end 2005 U.S. Projected Benefit Obligations for pension by $385 million, the year-end 2005 U.S.
Accumulated Benefit Obligations for pension by $349 million and the 2005 U.S. Accumulated Postretirement Benefit
Components of net periodic benefit cost and other supplemental information for the years ended December 31 follow: