3M 2012 Annual Report Download - page 85

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distribution plan. In April 2011, the 3M benefit plans received their share under the court-ordered distribution plan. 3M and
six other limited partners of WG Trading Company have appealed the court's order to the United States Court of Appeals
for the Second Circuit. The benefit plan trustee holdings of WG Trading Company interests were adjusted to reflect the
decreased estimated fair market value, inclusive of estimated insurance proceeds, as of the annual measurement dates.
The Company has insurance that it believes, based on what is currently known, will result in the recovery of a portion of
the decrease in original asset value. As of the 2012 measurement date these holdings represented less than one percent
of 3M’s fair value of total plan assets. 3M currently believes that the resolution of these events will not have a material
adverse effect on the consolidated financial position of the Company.
The following tables include a reconciliation of the beginning and ending balances of the benefit obligation and the fair
value of plan assets as well as a summary of the related amounts recognized in the Company’s consolidated balance
sheet as of December 31 of the respective years. 3M also has certain non-qualified unfunded pension and postretirement
benefit plans, inclusive of plans related to supplement/excess benefits for employees impacted by particular relocations
and other matters, that individually and in the aggregate are not significant and which are not included in the tables that
follow. The obligations for these plans are included within other liabilities in the Company’s consolidated balance sheet
and aggregated less than $40 million as of both December 31, 2012 and 2011.
Qualified and Non-qualified
Pension Benefits
Postretirement
United States
International
Benefits
(Millions)
2012
2011
2012
2011
2012
2011
Change in benefit obligation
Benefit obligation at beginning of year
$
14,499
$
12,319
$
5,332
$
4,912
$
2,108
$
1,828
Acquisitions
11
―
26
48
―
―
Service cost
254
206
124
124
78
61
Interest cost
587
626
247
261
86
92
Participant contributions
―
―
5
5
52
56
Foreign exchange rate changes
―
―
83
(84)
(2)
(9)
Plan amendments
―
8
(7)
(31)
―
―
Actuarial (gain) loss
179
2,022
882
318
31
228
Medicare Part D Reimbursement
―
―
―
―
8
7
Benefit payments
(726)
(680)
(278)
(221)
(156)
(155)
Settlements, curtailments, special
termination benefits and other
26
(2)
―
―
―
―
Benefit obligation at end of year
$
14,830
$
14,499
$
6,414
$
5,332
$
2,205
$
2,108
Change in plan assets
Fair value of plan assets at
beginning of year
$
12,102
$
11,575
$
4,643
$
4,355
$
1,209
$
1,149
Acquisitions
8
―
―
26
―
―
Actual return on plan assets
1,645
972
463
272
149
94
Company contributions
752
237
327
280
67
65
Participant contributions
―
―
5
5
52
56
Foreign exchange rate changes
―
―
62
(74)
―
―
Benefit payments
(726)
(680)
(278)
(221)
(156)
(155)
Settlements, curtailments, special
termination benefits and other
―
(2)
―
―
―
―
Fair value of plan assets at end of year
$
13,781
$
12,102
$
5,222
$
4,643
$
1,321
$
1,209
Funded status at end of year
$
(1,049)
$
(2,397)
$
(1,192)
$
(689)
$
(884)
$
(899)