3M 2007 Annual Report Download - page 76

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70
The U.S. plan’s asset allocation by asset category as of plan measurement dates follows:
Percentage
Target
of Plan Assets
Asset Category Allocation 2007 2006
U.S. qualified pension plan
Global equity 46% 45% 57%
Fixed income 24 23 19
Private equity 13 16 12
Absolute return 12 11 9
Commodities 5 42
Cash – 1 1
Total 100% 100% 100%
Postretirement benefits
Global equity 69% 75% 79%
Fixed income 10 910
Private equity 18 13 10
Absolute return 2 2–
Commodities 1 1–
Cash – – 1
Total 100% 100% 100%
While the target asset allocations do not have a percentage allocated to cash, the plans will always have some cash
due to cash flows. The postretirement allocation shown above represents a weighted-average allocation for U.S.
plans.
The international plans’ weighted-average asset allocation as of plan measurement dates follows:
Percentage of
Plan Assets
Asset Category 2007 2006
International pension plans
Global equity 46% 35%
Domestic equity 8
11
Foreign equity 4 11
Real estate 3 3
Domestic fixed income 19 19
Foreign fixed income 11 5
Insurance 9
15
Cash – 1
Total 100% 100%
The preceding asset allocations for international plans represent the top six countries by projected benefit obligation.
These countries represent approximately 90% of the total international plan assets. The other countries’ asset
allocations would not have a significant impact on the information presented.
In the third quarter of 2007, the Company made discretionary contributions totaling $200 million to its U.S. qualified
pension plan. In 2008, the Company expects to contribute an amount in the range of $100 million to $400 million to its
U.S. and international pension plans. The Company does not have a required minimum pension contribution
obligation for its U.S. plans in 2008. Therefore, the amount of the anticipated discretionary contribution could vary
significantly depending on the U.S. plans’ funding status as of the 2008 measurement date and the anticipated tax
deductibility of the contribution.