Motorola 2006 Annual Report Download - page 108

Download and view the complete annual report

Please find page 108 of the 2006 Motorola annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

100
Net Postretirement Health Care Benefit Plan expenses were as follows:
Years Ended December 31
2006
2005 2004
Service cost $8 $9 $10
Interest cost 25 30 46
Expected return on plan assets (18) (19) (21)
Amortization of:
Unrecognized net loss 910 14
Unrecognized prior service cost (2) (3) (4)
Settlement/curtailment gain Ì Ì (6)
Net postretirement health care expense $22 $27 $39
The funded status of the plan is as follows.
2006
2005
Change in benefit obligation:
Benefit obligation at January 1 $ 496 $ 544
Service cost 89
Interest cost 25 30
Plan amendments Ì1
Actuarial (gain) loss (37) (36)
Benefit payments (32) (52)
Benefit obligation at December 31 460 496
Change in plan assets:
Fair value at January 1 212 188
Return on plan assets 30 15
Company contributions 27 43
Benefit payments made with plan assets (26) (34)
Fair value at December 31 243 212
Funded status of the plan (217) (284)
Unrecognized net loss 171 230
Unrecognized prior service cost (9) (12)
Accrued postretirement health care cost $ (55) $ (66)
Consolidated balance sheet components of accrued health care cost as a result of SFAS 158:
Year Ended December 31
2006
Current liability $ (3)
Non-current liability (214)
Deferred income taxes 88
Non-owner changes to equity 74
Accrued postretirement health care cost $ (55)
With the adoption of SFAS 158, an after-tax charge of $74 million was recorded in Non-owner changes to
equity to reflect the funded status of the Company's Postretirement Health Care Benefit Plan on the consolidated
balance sheet as of December 31, 2006. Under previous accounting rules, there would have been no balance sheet