Memorex 2007 Annual Report Download - page 100

The following benefit payments as of December 31, 2007, reflect expected future services and are expected to be
paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter:
United States International
(In millions)
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $29.0 $ 2.4
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13.8 $ 2.6
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16.6 $ 2.9
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6.1 $ 3.4
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7.2 $ 3.4
2013-2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40.9 $19.3
Note 12 — Employee Savings and Stock Ownership Plans
We sponsor a 401(k) retirement savings plan under which eligible U.S. employees may choose to save up to
20 percent of eligible compensation on a pre-tax basis, subject to certain IRS limitations. We match 100 percent of
employee contributions on the first three percent of eligible compensation and 25 percent on the next three percent of
eligible compensation in our stock. We also sponsor a variable compensation program in which we may, at our discretion,
contribute up to three percent of eligible employee compensation to employees’ 401(k) retirement accounts, depending
upon our performance.
We used shares of treasury stock to match employee 401(k) contributions for 2007, 2006 and 2005. Total expense
related to the use of shares of treasury stock to match employee 401(k) contributions was $3.4 million in both 2007 and
2006 and $3.6 million in 2005.
Note 13 — Stock-Based Compensation
We have stock options outstanding under our 1996 Employee Stock Incentive Program (Employee Plan) and our
1996 Directors Stock Compensation Program. We have stock options and restricted stock outstanding under our 2000
Stock Incentive Plan (2000 Incentive Plan) and our 2005 Stock Incentive Plan (2005 Incentive Plan) (collectively, the Stock
Plans).
The Employee Plan was approved and adopted by 3M Company on June 18, 1996, as our sole shareholder, and
became effective on July 1, 1996. The total number of shares of common stock that could have been issued or awarded
under the Employee Plan was not to exceed 6.0 million. The outstanding options are non-qualified, normally have a term
of ten years, and generally become exercisable from one to five years after grant date. Exercise prices are equal to the
fair market value of our common stock on the date of grant. As a result of the approval and adoption of the 2000 Incentive
Plan in May 2000, no further shares are available for grant under the Employee Plan.
The Directors Plan was also approved and adopted by 3M Company, as our sole shareholder, and became effective
on July 1, 1996. The total number of shares of common stock that could have been issued or awarded under the Directors
Plan was not to exceed 800,000. The outstanding options are non-qualified, normally have a term of ten years and
generally become exercisable one year after grant date. Exercise prices are equal to the fair market value of our common
stock on the date of grant. As a result of the approval and adoption of the 2005 Incentive Plan in May 2005, no further
shares are available for grant under the Directors Plan.
The 2000 Incentive Plan was approved and adopted by our shareholders on May 16, 2000, and became effective
immediately. The total number of shares of common stock that could have been issued or awarded under the 2000
Incentive Plan was not to exceed 4.0 million. The outstanding options are non-qualified, normally have a term of seven to
ten years, and generally become exercisable 25 percent per year beginning on the first anniversary of the grant date.
Exercise prices are equal to the fair market value of our common stock on the date of grant. As a result of the approval
and adoption of the 2005 Incentive Plan in May 2005, no further shares are available for grant under the 2000 Incentive
Plan.
71
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)