Motorola 2005 Annual Report Download - page 111

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104
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 fixed 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 a cash contribution of approximately $275 million to its U.S. pension plans and
$44 million to its Non-U.S. pension plans in 2006.
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
U.S.
Pension Non
Year Plans U.S.
2006 $ 192 $ 22
2007 194 24
2008 220 27
2009 228 30
2010 238 32
2011-2015 1,515 231
Postretirement Health Care Benefits
Certain health care benefits 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
offsets a portion of the postretirement medical costs to the retired participant. As of January 1, 2005, the
postretirement healthcare plan has been closed to new participants.
The assumptions used were as follows:
December 31
2005
2004
Discount rate for obligations 5.75% 6.00%
Investment return assumptions 8.50% 8.50%
Net retiree health care expenses were as follows:
Years Ended December 31
2005
2004 2003
Service cost $9$10 $12
Interest cost 30 46 48
Expected return on plan assets (19) (21) (25)
Amortization of:
Unrecognized net loss 10 14 11
Unrecognized prior service cost (3) (4) (3)
Settlement/curtailment gain Ì(6) Ì
Net retiree health care expense $27 $39 $43