Motorola 2006 Annual Report Download - page 105

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97
The status of the Company's plans is as follows:
2006
2005
Officers'
Officers'
and Non
and Non
Regular MSPP U.S.
Regular MSPP U.S.
Change in benefit obligation:
Benefit obligation at January 1 $5,175 $160 $1,520 $4,741 $185 $1,310
Service cost 150 5 40 142 10 44
Interest cost 309 8 67 280 9 67
Plan amendments ÌÌ Ì 4Ì Ì
Settlement/curtailment ÌÌ ÌÌ (20) (3)
Actuarial (gain)loss 76 (13) (10) 277 6 264
Foreign exchange valuation adjustment Ì Ì 195 Ì Ì (148)
Employee contributions ÌÌ 12ÌÌ 11
Tax payments Ì (3) Ì Ì (16) Ì
Benefit payments (229) (20) (26) (269) (14) (25)
Benefit obligation at December 31 5,481 137 1,798 5,175 160 1,520
Change in plan assets:
Fair value at January 1 3,736 92 896 3,483 87 772
Return on plan assets 508 3 55 247 2 155
Company contributions 270 6 122 275 33 62
Employee contributions ÌÌ 12ÌÌ 11
Foreign exchange valuation adjustment Ì Ì 119 Ì Ì (83)
Tax payments from plan assets Ì (3) Ì Ì (15) Ì
Benefit payments from plan assets (229) (20) (26) (269) (15) (21)
Fair value at December 31 4,285 78 1,178 3,736 92 896
Funded status of the plan (1,196) (59) (620) (1,439) (68) (624)
Unrecognized net loss 1,612 53 469 1,831 75 454
Unrecognized prior service cost (25) (2) 4 (31) (3) 4
Prepaid (accrued) pension cost $ 391 $ (8) $ (147) $ 361 $ 4 $ (166)
Components of prepaid (accrued) pension cost:
Intangible asset $Ì $Ì $Ì$Ì $Ì $ 4
Prepaid benefit cost ÌÌ 13ÌÌ 18
Current benefit liability Ì (3) (3) ÌÌ Ì
Non-current benefit liability (1,196) (56) (630) (1,023) (58) (563)
Deferred income taxes 587 19 2 526 24 2
Non-owner changes to equity 1,000 32 471 858 38 373
Prepaid (accrued) pension cost $ 391 $ (8) $ (147) $ 361 $ 4 $ (166)
As required under SFAS 87, after-tax charges of $208 million and $188 million for the years ended
December 31, 2005 and 2004, respectively, were recorded in Non-owner changes in equity to reflect the net change
in the Company's additional minimum pension liability associated with these plans. With the adoption of SFAS 158,
an after-tax charge of $234 million to Non-owner changes in equity was recorded to reflect the funded status of
the Company's defined benefit plans on the consolidated balance sheet as of December 31, 2006. Had provisions of
SFAS 87 continued to apply, the Company would have increased equity by $206 million, net of tax. Accordingly,
the incremental impact of adopting SFAS 158 on the defined benefit plans resulted in a decrease to equity of
$440 million.