3M 2004 Annual Report Download - page 91

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65
Qualified and Non-qualified Postretirement
Pension Benefits Benefits
United States International
(Millions) 2004 2003 2004 2003 2004 2003
Funded status of plans
Plan assets at fair value less than benefit obligation $ (527) $(1,176) $ (591) $ (619) $ (659) $ (835)
Unrecognized transition (asset) obligation ––
11 6 ––
Unrecognized prior service cost (benefit) 89 100 (83) (69) (193) (233)
Unrecognized net actuarial (gain) loss 2,121 2,648 1,023 857 919 1,051
Adjustment for fourth quarter – (1) –– –
30
Net amount recognized $ 1,683 $ 1,571 $ 360 $ 175 $ 67 $ 13
Amounts recognized in the Consolidated
Balance Sheet as of December 31
Prepaid benefit cost $ 1,851 $ –$ 559 $ 458 $ 143 $ 53
Accrued liabilities (309) (615) (388) (436) (76) (40)
Intangible assets 6 100 32 22 ––
Accumulated other comprehensive income –
pre-tax 135 2,086 157 131 ––
Net amount recognized $ 1,683 $ 1,571 $ 360 $ 175 $ 67 $ 13
Components of net periodic benefit cost and other supplemental information for the year ended December 31
follow:
Benefit Plan Information Qualified and Non-qualified Postretirement
Pension Benefits
Benefits
United States International
(Millions) 2004 2003 2002 2004 2003 2002 2004 2003 2002
Service cost $164 $148 $133 $ 101 $100 $ 88
$ 52 $ 47 $ 41
Interest cost 483 474 461 166 145 127 100 96 92
Expected return on plan assets (627) (621) (606) (202) (179) (154) (87) (78) (71)
Amortization of transition (asset) obligation – – – 5 3 3 –– –
Amortization of prior service cost (benefit) 14 14 14 (2) 2 7 (39) (32) (11)
Recognized net actuarial (gain) loss 159 30 3 43 28 16 84 55 17
Net periodic benefit cost $193 $ 45 $ 5 $ 111 $ 99 $ 87 $110 $ 88 $ 68
Settlements, curtailments and special
termination benefits 21 24 45 ––
4 –– –
Net periodic benefit cost after settlements,
curtailments and special termination benefits $214 $ 69 $ 50 $ 111 $ 99 $ 91 $110 $ 88 $ 68
Qualified and Non-qualified Postretirement
Pension Benefits Benefits
Weighted average assumptions used United States International
to determine benefit obligations 2004 2003 2002 2004 2003 2002 2004 2003 2002
Discount rate 5.75% 6.00% 6.75% 4.88% 4.95% 4.78% 5.75% 6.00% 6.75%
Compensation rate increase 4.30% 4.30% 4.60% 3.55% 3.46% 3.58% 4.30% 4.30% 4.60%
Weighted average assumptions used
to determine net cost for years ended 2004 2003 2002 2004 2003 2002 2004 2003 2002
Discount rate 6.00% 6.75% 7.25% 4.95% 4.78% 5.23% 6.00% 6.75% 7.25%
Expected return on assets 9.00% 9.00% 9.00% 7.09% 7.27% 7.25% 9.39% 9.42% 9.48%
Compensation rate increase 4.30% 4.60% 4.60% 3.46% 3.58% 4.02% 4.30% 4.60% 4.60%