3M 2010 Annual Report Download - page 83

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77
3M was informed during the first quarter of 2009 that the general partners of WG Trading Company, in which 3M’s
benefit plans hold limited partnership interests, are the subject of a criminal investigation as well as civil proceedings
by the SEC and CFTC (Commodity Futures Trading Commission). As of December 31, 2010, these holdings
represented less than one percent of 3M’s fair value of total plan assets. The court appointed receiver has taken
control of WG Trading Company and other entities controlled by its general partners, and further redemptions of
limited partnership interests are restricted pending court proceedings. 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
Company has insurance that it believes, based on what is currently known, is applicable to a portion of this potential
decrease in asset value. The benefit plan trustee holdings of WG Trading Company interests have been adjusted to
estimated fair market value.
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
Pension Benefits
Postretirement
United States
International
Benefits
(Millions)
2010
2009
2010
2009
2010
2009
Change in benefit obligation
Benefit obligation at beginning of year .............
$
11,391
$
10,395
$
4,685
$
4,037
$
1,579
$
1,611
Acquisitions .......................................................
—
—
4
—
—
—
Service cost ......................................................
201
183
105
98
55
51
Interest cost ......................................................
638
619
241
235
88
97
Participant contributions ...................................
—
—
4
4
59
52
Foreign exchange rate changes .......................
—
—
16
284
6
14
Plan amendments .............................................
—
—
(75
)
14
69
(168
)
Actuarial (gain) loss ..........................................
760
822
167
255
125
80
Medicare Part D Reimbursement .....................
—
—
—
—
13
10
Benefit payments ..............................................
(668
)
(649
)
(194
)
(245
)
(166
)
(168
)
Settlements, curtailments, special termination
benefits and other .........................................
(3
)
21
(41
)
3
—
—
Benefit obligation at end of year .......................
$
12,319
$
11,391
$
4,912
$
4,685
$
1,828
$
1,579
Change in plan assets
Fair value of plan assets at beginning of year ..
$
10,493
$
9,243
$
3,897
$
3,022
$
1,075
$
929
Acquisitions .......................................................
—
—
4
—
—
—
Actual return on plan assets .............................
1,463
1,148
360
361
119
129
Company contributions .....................................
290
755
266
504
62
133
Participant contributions ...................................
—
—
4
4
59
52
Foreign exchange rate changes .......................
—
—
18
251
—
—
Benefit payments ..............................................
(668
)
(649
)
(194
)
(245
)
(166
)
(168
)
Settlements, curtailments, special termination
benefits and other .........................................
(3
)
(4
)
—
—
—
—
Fair value of plan assets at end of year ............
$
11,575
$
10,493
$
4,355
$
3,897
$
1,149
$
1,075
Funded status at end of year ...............................
$
(744
)
$
(898
)
$
(557
)
$
(788
)
$
(679
)
$
(504
)