Motorola 2006 Annual Report Download - page 107

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99
plan assets in equity and fixed income securities and cash. In addition, some plans invest in insurance contracts. The
Company has the following target mixes for these asset classes, which are readjusted at least quarterly, when an
asset class weighting deviates from the target mix, with the goal of achieving the required return at a reasonable risk
level as follows:
Target Mix
Asset Category
2006
2005
Equity securities 75% 73%
Fixed income securities 24% 25%
Cash and other investments 1% 2%
The weighted-average pension plan asset allocation at December 31, 2006 and 2005 by asset categories was as
follows:
Actual Mix
Asset Category
2006
2005
Equity securities 75% 73%
Fixed income securities 24 25
Cash and other investments 12
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 fixed income securities asset
class, the investment policy provides for investments in a broad range of publicly-traded debt securities ranging
from U.S. Treasury issues, corporate debt securities, mortgage and asset-backed securities, 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 $280 million to its U.S. pension plans and
approximately $120 million to its non-U.S. pension plans in 2007.
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
Officers
and Non
Year Regular MSPP U.S.
2007 $ 186 $13 $27
2008 196 15 30
2009 206 14 33
2010 218 14 36
2011 233 25 40
2012-2016 1,473 45 267
Postretirement Health Care Benefit Plan
Certain health care benefits are available to eligible domestic employees meeting certain age and service
requirements upon termination of employment (the ""Postretirement Health Care Benefits Plan''). 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 Health Care Benefit Plan has been closed to new
participants. The benefit obligation and plan assets for the Postretirement Health Care Benefit Plan have been
measured as of December 31, 2006.
The assumptions used were as follows:
December 31
2006
2005
Discount rate for obligations 5.75% 5.75%
Investment return assumptions 8.50% 8.50%