3M 2007 Annual Report Download - page 72

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66
The following illustrates the adjustments to the Balance Sheet to record the initial adoption of the SFAS No. 158
funded status as of December 31, 2006:
Pre-SFAS
No. 158
SFAS
No.158
Post
With AML AML with AML adoption SFAS
(Millions) from 2005 adjustment adjustments adjustments No. 158
Prepaid Pension/(accrued pension liability) $2,111 $15 $2,126 $(3,199) $(1,073)
Intangible asset 24 (5) 19 (19) –
Deferred tax asset 98 (3) 95 1,300 1,395
Accumulated other comprehensive
income, net of tax 156 (7) 149 1,918 2,067
Accumulated other comprehensive
income, pre-tax 254 (10) 244 3,218 3,462
Following is a reconciliation of the beginning and ending balances of the benefit obligation and the fair value of plan
assets as of December 31:
Qualified and Non-qualified Postretirement
Pension Benefits Benefits
United States International
(Millions) 2007 2006 2007 2006
2007 2006
Change in benefit obligation
Benefit obligation at beginning of year $10,149 $10,052 $4,450 $3,884 $1,841 $1,918
Acquisitions – – 322 – –
Service cost 192 196 125 124 57 58
Interest cost 568 539 228 183 104 104
Participant contributions – – 44 47 41
Foreign exchange rate changes – – 337 365 14 –
Plan amendments 18 2 17 (1) (98) (157)
Actuarial (gain) loss (154) (142) (114) 26 (16) 35
Medicare Part D Reimbursement – – – – 10 10
Benefit payments (565) (530) (175) (146) (159) (168)
Settlements, curtailments, special termination
benefits and other 7 32 (19) (11) 9 –
Benefit obligation at end of year $10,215 $10,149 $4,856 $4,450 $1,809 $1,841
Change in plan assets
Fair value of plan assets at beginning of year $10,060 $ 9,285 $3,970 $3,340 $1,337 $1,239
Acquisitions – –1 21 – –
Actual return on plan assets 1,376 1,072 188 325 127 188
Company contributions 225 233 151 115 3 37
Participant contributions – –44 47 41
Foreign exchange rate changes – –300 316 – –
Benefit payments (565) (530) (175) (146) (159) (168)
Settlements, curtailments, special termination
benefits and other – – (15) (5) – –
Fair value of plan assets at end of year $11,096 $10,060 $4,424 $3,970 $1,355 $1,337
Funded status at end of year $ 881 $ (89) $ (432) $ (480) $ (454) $ (504)