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85
International Pension Plans Assets
Outside the U.S., pension plan assets are typically managed by decentralized fiduciary committees. The disclosure
below of asset categories is presented in aggregate for the 55 plans in 23 countries, however there is significant
variation in policy asset allocation from country to country. Local regulations, local funding rules, and local financial
and tax considerations are part of the funding and investment allocation process in each country. 3M’s Treasury
group provides standard funding and investment guidance to all international plans with more focused guidance to
the larger plans.
Each plan has its own strategic asset allocation. The asset allocations are reviewed periodically and rebalanced
when necessary.
The fair values of the assets held by the international pension plans by asset class are as follows:
(Millions)
Fair Value
At Dec. 31,
Fair Value Measurements
Using Inputs Considered as
Asset Class
2010
Level 1
Level 2
Level 3
Equities
Growth equities ...............................................
$
371
$
300
$
70
$
1
Value equities .................................................
396
369
27
—
Core equities ...................................................
1,007
549
361
97
Total Equities ......................................................
$
1,774
$
1,218
$
458
$
98
Fixed Income
Domestic government debt .............................
$
656
$
194
$
455
$
7
Foreign government debt ...............................
398
51
345
2
Corporate debt securities ...............................
707
139
555
13
Mortgage backed debt ....................................
14
—
14
—
Other debt obligations ....................................
14
—
2
12
Total Fixed Income .............................................
$
1,789
$
384
$
1,371
$
34
Private Equity
Private equity funds ........................................
$
29
$
—
$
15
$
14
Real estate ......................................................
59
—
3
56
Total Private Equity ............................................
$
88
$
—
$
18
$
70
Absolute Return
Hedge funds ...................................................
$
130
$
—
$
130
$
—
Insurance ........................................................
344
—
—
344
Derivatives ......................................................
50
—
50
—
Other ...............................................................
3
—
3
—
Total Absolute Return .........................................
$
527
$
—
$
183
$
344
Cash and Cash Equivalents ...............................
$
242
$
233
$
9
$
—
Total ............................................................
$
4,420
$
1,835
$
2,039
$
546
Other items to reconcile to fair value of plan
assets .............................................................
$
(65
)
Fair value of plan assets ....................................
$
4,355