Motorola 2008 Annual Report Download - page 116

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Non-U.S. Plans
Years Ended December 31 2008 2007 2006
Service cost $34 $45 $40
Interest cost 87 90 67
Expected return on plan assets (84) (76) (54)
Amortization of unrecognized net loss 2 14 17
Settlement gain (7) ——
Net periodic pension cost $32 $73 $70
The status of the Company’s plans is as follows:
Regular
Officers’
and
MSPP
Non
U.S. Regular
Officers’
and
MSPP Non
U.S.
2008 2007
Change in benefit obligation:
Benefit obligation at January 1 $ 4,879 $118 $1,689 $5,481 $137 $1,798
Service cost 98 3 34 133 4 45
Interest cost 323 7 87 311 7 90
Plan amendments —— 1(268) (3) 1
Settlement/curtailment (168) (2) — — — (16)
Actuarial (gain) loss 207 7 (149) (561) (7) (287)
Foreign exchange valuation adjustment — — (353) —— 80
Employee contributions —— 6 —— 14
Tax payments — (1) — — (1) —
Benefit payments (229) (16) (94) (217) (19) (36)
Benefit obligation at December 31 5,110 116 1,221 4,879 118 1,689
Change in plan assets:
Fair value at January 1 4,674 66 1,403 4,285 78 1,178
Return on plan assets (1,390) 4 (107) 336 4 98
Company contributions 240 3 54 270 4 135
Employee contributions —— 6 —— 14
Foreign exchange valuation adjustment — — (305) —— 14
Tax payments from plan assets — (1) — — (1) —
Benefit payments from plan assets (229) (16) (94) (217) (19) (36)
Fair value at December 31 3,295 56 957 4,674 66 1,403
Funded status of the plan (1,815) (60) (264) (205) (52) (286)
Unrecognized net loss 2,722 48 180 954 43 168
Unrecognized prior service cost —— 4(263) (5) 4
Prepaid (accrued) pension cost $ 907 $ (12) $ (80) $ 486 $ (14) $ (114)
Components of prepaid (accrued) pension cost:
Prepaid benefit cost $— $— $—$— $— $19
Non-current benefit liability (1,815) (60) (264) (205) (52) (305)
Deferred income taxes 1,008 19 14 255 14 4
Non-owner changes to equity 1,714 29 170 436 24 168
Prepaid (accrued) pension cost $ 907 $ (12) $ (80) $ 486 $ (14) $ (114)
It is estimated that the net periodic cost for 2009 will include amortization of the unrecognized net loss and
prior service costs for the Regular Plan, Officers’ and MSPP Plans, and Non-U.S. Plans, currently included in Non-
owner changes to equity, of $83 million, $3 million, and $7 million, respectively.
The Company uses a five-year, market-related asset value method of amortizing asset-related gains and losses.
Prior service costs are being amortized over periods ranging from 11 to 12 years. Benefits under all pension plans
are valued based upon the projected unit credit cost method.
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