3M 2015 Annual Report Download - page 81

TableofContents
Long-TermDebtMaturities
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InJuly2014,3Mretiredatmaturity1.025billionEurosofseven-year5.0%fixedrateEurobonds.InDecember2012,3Mentered
intoathree-year66millionBritishPound(approximately$106millionbasedonagreementdateexchangerates)committedcredit
facilityagreementwithJPMorganChaseBank,whichwasfullydrawnasofDecember31,2012.3Mrepaidthebalancein2014.
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InAugust2013,3Mrepaid$850million(principalamount)ofmedium-termnotes.
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FloatingRateNotes
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Atvarioustimes,3Mhasissuedfloatingratenotescontainingputprovisions.3Mwouldberequiredtorepurchasethesesecuritiesat
variouspricesrangingfrom99percentto100percentofparvalueaccordingtothereductionschedulesforeachsecurity.In
December2004,3Missuedaforty-year$60millionfloatingratenote,witharatebasedonafloatingLIBORindex.Undertheterms
ofthisfloatingratenoteduein2044,holdershaveanannualputfeatureat100percentofparvaluefrom2014andeveryanniversary
thereafteruntilfinalmaturity.Underthetermsofthefloatingratenotesduein2027,2040and2041,holdershaveputoptionsthat
commencetenyearsfromthedateofissuanceandeachthirdanniversarythereafteruntilfinalmaturityatpricesrangingfrom99
percentto100percentofparvalue.In2008through2015,3Mwasrequiredtorepurchaseanimmaterialamountofprincipalonthe
aforementionedfloatingratenotes.
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NOTE11.PensionandPostretirementBenefitPlans
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3Mhascompany-sponsoredretirementplanscoveringsubstantiallyallU.S.employeesandmanyemployeesoutsidetheUnited
States.Intotal,3Mhasover80definedbenefitplansin28countries.Pensionbenefitsassociatedwiththeseplansgenerallyarebased
oneachparticipant’syearsofservice,compensation,andageatretirementortermination.TheprimaryU.S.defined-benefitpension
planwasclosedtonewparticipantseffectiveJanuary1,2009.TheCompanyalsoprovidescertainpostretirementhealthcareandlife
insurancebenefitsforsubstantiallyallofitsU.S.employeeswhoreachretirementagewhileemployedbytheCompany.Most
internationalemployeesandretireesarecoveredbygovernmenthealthcareprograms.Thecostofcompany-providedpostretirement
healthcareplansforinternationalemployeesisnotmaterialandiscombinedwithU.S.amountsinthetablesthatfollow.
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TheCompanyalsosponsorsemployeesavingsplansunderSection401(k)oftheInternalRevenueCode.Theseplansareofferedto
substantiallyallregularU.S.employees.ForeligibleemployeeshiredpriortoJanuary1,2009,employee401(k)contributionsofup
to6%ofeligiblecompensationwerematchedincashatratesof60%or75%,dependingontheplaninwhichtheemployee
participates.EmployeeshiredonorafterJanuary1,2009,receivedacashmatchof100%foremployee401(k)contributionsofupto
6%ofeligiblecompensationandalsoreceivedanemployerretirementincomeaccountcashcontributionof3%oftheparticipant’s
totaleligiblecompensation.BeginningonJanuary1,2016,forU.S.employees,theCompanyreduceditsmatchonemployee
401(k)contributions.ForeligibleemployeeshiredpriortoJanuary1,2009,employee401(k)contributionsofupto5%ofeligible
compensationwillbematchedincashatratesof45%or60%,dependingontheplaninwhichtheemployeeparticipates.Employees
hiredonorafterJanuary1,2009,willreceiveacashmatchof100%foremployee401(k)contributionsofupto5%ofeligible
compensationandwillalsocontinuetoreceiveanemployerretirementincomeaccountcashcontributionof3%oftheparticipant’s
totaleligiblecompensation.Allcontributionsareinvestedinanumberofinvestmentfundspursuanttotheemployees’elections.
EmployercontributionstotheU.S.definedcontributionplanswere$165million,$153millionand$136millionfor2015,2014and
2013,respectively.3Msubsidiariesinvariousinternationalcountriesalsoparticipateindefinedcontributionplans.Employer
contributionstotheinternationaldefinedcontributionplanswere$77million,$75millionand$71millionfor2015,2014and2013,
respectively.
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TheCompanyhasmadedepositsforitsdefinedbenefitplanswithindependenttrustees.Trustfundsanddepositswithinsurance
companiesaremaintainedtoprovidepensionbenefitstoplanparticipantsandtheirbeneficiaries.Therearenoplanassetsinthenon-
qualifiedplanduetoitsnature.ForitsU.S.postretirementhealthcareandlifeinsurancebenefitplans,theCompanyhassetaside
amountsatleastequaltoannualbenefitpaymentswithanindependenttrustee.
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