Motorola 2004 Annual Report Download - page 115

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107
MOTOROLA INC. AND SUBSIDIARIES NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS(Dollars in millions, except as noted)
The weighted-average pension plan asset allocation at December 31, 2004 and 2003 by asset categories was as
follows:
December 31,
Asset Category
2004
2003
Equity securities 73% 73%
Fixed income securities 25 25
Cash and other investments 22
100% 100%
Within the equity securities asset class, the investment policy provides for investments in a broad range of
publicly-traded securities including both domestic and international stocks. Within the Ñxed income securities asset
class, the investment policy provides for investments in a broad range of publicly-traded debt securities ranging
from US Treasury issues, corporate debt securities, mortgages and asset-backed issues, as well as international debt
securities. In the cash and other investments asset class, investments may be in cash, cash equivalents or insurance
contracts.
The Company expects to make cash contributions of approximately $150 million to its U.S. pension plans and
$45 million to its Non-U.S. pension plans in 2005.
The following beneÑt payments, which reÖect expected future service, as appropriate, are expected to be paid
as follows:
U.S.
Pension Non
Year Plans U.S.
2005 $ 188 $ 24
2006 195 24
2007 205 27
2008 236 30
2009 242 33
2010-2014 1,486 232
Postretirement Health Care BeneÑts
Certain health care beneÑts are available to eligible domestic employees meeting certain age and service
requirements upon termination of employment. For eligible employees hired prior to January 1, 2002, the Company
oÅsets a portion of the postretirement medical costs to the retired participant. EÅective January 1, 2005, newly
hired employees will not be eligible to participate in this plan.
The assumptions used were as follows:
December 31
2004
2003
Discount rate for obligations 6.00% 6.50%
Investment return assumptions 8.50% 8.50%
Net retiree health care expenses were as follows:
Years Ended December 31
2004
2003 2002
Service cost $10 $12 $14
Interest cost 46 48 48
Expected return on plan assets (21) (25) (30)
Amortization of:
Unrecognized net loss 14 11 7
Unrecognized prior service cost (4) (3) (1)
Settlement/curtailment gain (6) ÌÌ
Net retiree health care expense $39 $43 $38