Motorola 2010 Annual Report Download - page 104

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96
Plan or who participated in the restricted stock buy-out are not eligible to participate in MSPP. Effective January 1,
2007, eligible compensation was capped at the IRS limit plus $175,000 (the “Cap”) or, for those already in excess
of the Cap as of January 1, 2007, the eligible compensation used to compute such employee’s MSPP benefit for all
future years will be the greater of: (i) such employee’s eligible compensation as of January 1, 2007 (frozen at that
amount), or (ii) the relevant Cap for the given year. Additionally, effective January 1, 2009, the MSPP was closed to
new participants unless such participation was required under a prior contractual entitlement.
In February 2007, the Company amended the Regular Pension Plan and the MSPP, modifying the definition of
average earnings. For the years ended prior to December 31, 2007, benefits were calculated using the rolling average
of the highest annual earnings in any five years within the previous ten calendar year period. Beginning in January
2008, the benefit calculation was based on the set of the five highest years of earnings within the ten calendar years
prior to December 31, 2007, averaged with earnings from each year after 2007. In addition, effective January 2008,
the Company amended the Regular Pension Plan, modifying the vesting period from five years to three years.
In December 2008, the Company amended the Regular Pension Plan, the Officers’ Plan and the MSPP. Effective
March 1, 2009, (i) no participant shall accrue any benefit or additional benefit on and after March 1, 2009, and
(ii) no compensation increases earned by a participant on and after March 1, 2009 shall be used to compute any
accrued benefit. Additionally, no service performed on and after March 1, 2009, shall be considered service for any
purpose under the MSPP. The Company recognized a $237 million curtailment gain associated with this plan
amendment in 2008.
The net periodic pension cost (benefit) for the Regular Pension Plan, Officers’ Plan and MSPP and Non-U.S.
plans was as follows:
Regular Pension Plan
Years Ended December 31 2010 2009 2008
Service cost $— $14 $ 98
Interest cost 341 336 323
Expected return on plan assets (377) (380) (391)
Amortization of:
Unrecognized net loss 148 78 52
Unrecognized prior service cost —— (31)
Curtailment gain —— (232)
Net periodic pension cost (benefit) $ 112 $ 48 ($ 181)
Officers’ Plan and MSPP
Years Ended December 31 2010 2009 2008
Service cost $— $— $ 3
Interest cost 367
Expected return on plan assets (1) (2) (2)
Amortization of:
Unrecognized net loss 331
Unrecognized prior service cost —— (1)
Curtailment gain —— (5)
Settlement loss 217 5
Net periodic pension cost $7 $24 $ 8
Non-U.S. Plans
Years Ended December 31 2010 2009 2008
Service cost $24 $26 $34
Interest cost 84 77 87
Expected return on plan assets (81) (69) (84)
Amortization of:
Unrecognized net loss 19 71
Unrecognized prior service cost (4) 11
Settlement/curtailment gain (4) (1) (7)
Net periodic pension cost $38 $41 $32