Motorola 2007 Annual Report Download - page 111

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The funded status of the plan is as follows:
2007 2006
Change in benefit obligation:
Benefit obligation at January 1 $ 460 $ 496
Service cost 78
Interest cost 23 25
Actuarial (gain) loss (62) (37)
Benefit payments (33) (32)
Benefit obligation at December 31 395 460
Change in plan assets:
Fair value at January 1 243 212
Return on plan assets 20 30
Company contributions 15 27
Benefit payments made with plan assets (27) (26)
Fair value at December 31 251 243
Funded status of the plan (144) (217)
Unrecognized net loss 98 171
Unrecognized prior service cost (8) (9)
Accrued postretirement health care cost $ (54) $ (55)
Components of accrued postretirement health care cost:
Years Ended December 31 2007 2006
Current liability $— $ (3)
Non-current liability (144) (214)
Deferred income taxes 55 88
Non-owner changes to equity 35 74
Accrued postretirement health care cost $ (54) $ (55)
It is estimated that the net periodic cost for the Postretirement Health Care Benefit Plan in 2008 will include
amortization of the unrecognized net loss and prior service costs, currently included in Non-owner changes in
equity, of $2 million.
The Company has adopted an investment policy for plan assets designed to meet or exceed the expected rate
of return on plan assets assumption. To achieve this, the plan retains professional investment managers that invest
plan assets in equity and fixed income securities and cash. 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:
Asset Category 2007 2006
Target Mix
Equity securities 75% 75%
Fixed income securities 24% 24%
Cash and other investments 1% 1%
The weighted-average asset allocation for plan assets at December 31, 2007 and 2006 by asset categories were
as follows:
Asset Category 2007 2006
Actual Mix
Equity securities 74% 75%
Fixed income securities 25% 22%
Cash and other investments 1% 3%
103