Motorola 2005 Annual Report Download - page 109

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102
The status of the Company's plans is as follows:
2005
2004
Officers
Officers
and Non
and Non
Regular MSPP U.S.
Regular MSPP U.S.
Change in benefit obligation:
Benefit obligation at January 1 $ 4,741 $185 $1,310 $ 4,174 $208 $1,225
Service cost 142 10 44 168 14 51
Interest cost 280 9 67 271 12 66
Plan amendments 4Ì Ì ÌÌ Ì
Discontinued operations ÌÌ Ì Ì Ì (80)
Settlement/curtailment Ì (20) (3) (115) (8) (27)
Actuarial (gain)loss 277 6 264 403 13 (36)
Foreign exchange valuation adjustment Ì Ì (148) Ì Ì 125
Employee contributions ÌÌ 11 ÌÌ 14
Tax payments Ì (16) Ì Ì (20) Ì
Benefit payments (269) (14) (25) (160) (34) (28)
Benefit obligation at December 31 5,175 160 1,520 4,741 185 1,310
Change in plan assets:
Fair value at January 1 3,483 87 772 2,798 96 668
Return on plan assets 247 2 155 265 3 60
Company contributions 275 33 62 580 25 47
Employee contributions ÌÌ 11 ÌÌ 14
Discontinued operations ÌÌ Ì Ì Ì (59)
Foreign exchange valuation adjustment Ì Ì (83) ÌÌ 61
Tax payments from plan assets Ì (15) Ì Ì (4) Ì
Benefit payments from plan assets (269) (15) (21) (160) (33) (19)
Fair value at December 31 3,736 92 896 3,483 87 772
Funded status of the plan (1,439) (68) (624) (1,258) (98) (538)
Unrecognized net loss 1,831 75 450 1,561 103 354
Unrecognized prior service cost (31) (3) 4 (40) 1 4
Prepaid (accrued) pension cost $ 361 $ 4 $ (170) $ 263 $ 6 $ (180)
Components of prepaid (accrued) pension cost:
Intangible asset $Ì$Ì$4$Ì$4$5
Prepaid benefit cost ÌÌ 18 ÌÌ 20
Accrued benefit liability (1,023) (58) (563) (924) (72) (485)
Deferred income taxes 526 24 2 452 28 1
Non-owner changes to equity 858 38 369 735 46 279
$ 361 $ 4 $ (170) $ 263 $ 6 $ (180)
The Company uses a five-year, market-related asset value method of amortizing asset-related gains and losses.
Prior service costs are being amortized over periods ranging from 9 to 15 years. The benefit obligation and related
assets have been measured as of December 31, 2005 for all U.S. plans and as of October 1, 2005 for all Non-
U.S. plans. Benefits under all U.S. pension plans are valued based upon the projected unit credit cost method.
Certain actuarial assumptions such as the discount rate and the long-term rate of return on plan assets have a
significant effect on the amounts reported for net periodic cost as well as the related obligation amounts of the
Company's plans. The assumed discount rates reflects the prevailing market rates of a large population of high-
quality, non-callable, corporate bonds currently available that, if the obligation was settled at the measurement date,
would provide the necessary future cash flows to pay the benefit obligation when due. The long-term rate of return
on plan assets represents an estimate of long-term returns on an investment portfolio consisting of a mixture of
equities, fixed income, and cash and other investments. In determining the long-term return on plan assets, the
Company considers long-term rates of return on the asset classes (both historical and forecasted) in which the
Company expects the plan funds to be invested.