3M 2004 Annual Report Download - page 90

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64
As previously disclosed in the Company’s June 30, 2004 and September 30, 2004 Form 10-Qs, in 2004, the
Company’s U.S. plan measurement date was changed from September 30 to December 31. Information
presented in the tables for U.S. plans for 2004 reflects a measurement date of December 31, 2004 and
September 30 for 2003 and 2002. The primary reasons for this change include consistency between the U.S. and
international dates, the increased clarity that results from having the same measurement and balance sheet dates,
and administrative simplification. This change did not have a material impact on the determination of periodic
pension cost or pension obligations.
Following is a summary of the funded status of the plans as of the plan measurement dates:
Qualified and Non-qualified Pension Benefits
United States International
(Millions) 2004 2003 2004 2003
Projected benefit obligation $8,949 $8,270 $3,896 $3,350
Accumulated benefit obligation 8,331 7,708 3,375 2,891
Plan assets 8,422 7,094 3,305 2,731
Funded status (527) (1,176) (591) (619)
Certain international pension plans were underfunded as of December 31, 2004 and 2003. The accumulated
benefit obligations of these plans were $1.378 billion in 2004 and $764 million in 2003. The assets of these plans
were $1.073 billion in 2004 and $402 million in 2003. The net underfunded amounts are included in current and
other liabilities on the Consolidated Balance Sheet.
Following is a reconciliation of the beginning and ending balances of the benefit obligation and the fair value of
plan assets as of the plan measurement dates:
Qualified and Non-qualified Postretirement
Pension Benefits Benefits
United States International
(Millions) 2004 2003 2004 2003 2004 2003
Reconciliation of projected benefit obligation
Beginning balance $ 8,270 $ 7,221 $3,350 $2,872 $1,712 $1,453
Service cost 164 148 101 100 52 47
Interest cost 483 474 166 145 100 96
Participant contributions ––
10 9 34 22
Foreign exchange rate changes ––
273 404 57
Plan amendments 3 5 (16) (91) – (102)
Actuarial (gain) loss 618 889 187 6 74 329
Benefit payments (613)* (491) (118) (96) (185) (140)
Settlements, curtailments, special termination
benefits and other 24 24 (57) 1 ––
Ending balance $ 8,949 $ 8,270 $3,896 $3,350 $1,792 $1,712
Reconciliation of plan assets at fair value
Beginning balance $ 7,094 $ 5,913 $2,731 $2,070 $ 877 $ 626
Actual return on plan assets 1,616 1,050 230 283 209 159
Company contributions 325* 622 271 127 198 210
Participant contributions ––
11 9 34 22
Foreign exchange rate changes ––
237 337 ––
Benefit payments (613)* (491) (118) (96) (185) (140)
Settlements, curtailments, special termination
benefits and other ––
(57) 1 ––
Ending balance $ 8,422 $ 7,094 $3,305 $2,731 $ 1,133 $ 877
*For the 12 months ended December 31, 2004, U.S. qualified and non-qualified pension benefit payments totaled
$494 million and U.S. Company contributions totaled $320 million.