Motorola 2004 Annual Report Download - page 112

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104 MOTOROLA INC. AND SUBSIDIARIESNOTES TO
CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except as noted)
material adverse eÅect on the Company's consolidated Ñnancial position, liquidity or results of operations in the
period in which the matter is ultimately resolved.
7. Employee BeneÑt and Incentive Plans
Pension BeneÑts
The Company's noncontributory pension plan (the Regular Pension Plan) covers most U.S. employees who
become eligible after one year of service. The beneÑt formula is dependent upon employee earnings and years of
service. EÅective January 1, 2005, newly-hired employees will not be eligible to participate in the Regular Pension
Plan.
The Company has a noncontributory supplemental retirement beneÑt plan (the OÇcers' Plan) for its elected
oÇcers. The OÇcers' Plan contains provisions for funding the participants' expected retirement beneÑts when the
participants meet the minimum age and years of service requirements. Elected oÇcers who were not yet vested in
the OÇcers' Plan as of December 31, 1999 had the option to remain in the OÇcers' Plan or elect to have their
beneÑt bought out in restricted stock units. EÅective December 31, 1999, no new elected oÇcers were eligible to
participate in the OÇcers' Plan.
The Company has an additional noncontributory supplemental retirement beneÑt plan (the Motorola
Supplemental Pension PlanÌMSPP), which provides supplemental beneÑts, to certain employees, in excess of the
limitations imposed by the Internal Revenue Code on the Regular Pension Plan. Elected oÇcers covered under the
OÇcers' Plan or who participated in the restricted stock buy-out are not eligible to participate in MSPP. EÅective
January 1, 2005, newly-hired employees will not be eligible to participate in MSPP.
The Company also provides deÑned beneÑt plans to employees of some of its foreign entities. The information
below for Non U.S. plans covers the Company's principal foreign plans; any other plans are not signiÑcant to the
Company either individually or in the aggregate.
The net periodic pension cost for the regular pension plan, oÇcers' plan, MSPP and Non U.S. plans was as
follows:
Regular Pension Plan
Years Ended December 31
2004
2003 2002
Service cost $ 168 $ 173 $ 165
Interest cost 271 252 231
Expected return on plan assets (286) (281) (303)
Amortization of:
Unrecognized net loss 33 ÌÌ
Unrecognized prior service cost (7) (7) (8)
Settlement/curtailment gain (12) Ì (13)
Net periodic pension cost $ 167 $ 137 $ 72
OÇcers' Plan and MSPP
Years Ended December 31
2004
2003 2002
Service cost $14 $16 $21
Interest cost 12 13 15
Expected return on plan assets (3) (4) (5)
Amortization of:
Unrecognized net loss 755
Unrecognized prior service cost 112
Settlement/curtailment loss 14 16 44
Net periodic pension cost $45 $47 $82