Motorola 2013 Annual Report Download - page 79

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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 (collectively, the
“U.S. Pension Benefit Plans”) such that, effective March 1, 2009: (i) no participant shall accrue any benefit or additional
benefit on or after March 1, 2009, and (ii) no compensation increases earned by a participant on or after March 1, 2009 shall be
used to compute any accrued benefit.
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 Benefits Plan was closed to new participants. During 2012, the Postretirement Health
Care Benefits Plan was amended. As of January 1, 2013, benefits under the Postretirement Health Care Benefits Plan, are paid
to a retiree health reimbursement account instead of directly providing health insurance coverage to the participants. Covered
retirees are now able to use the annual subsidy they receive through this account toward the purchase of their own health care
coverage from private insurance companies and for reimbursement of eligible health care expenses.
Net Periodic Cost
The net periodic costs (benefit) for pension and Postretirement Health Care Benefits plans were as follows:
U.S. Pension Benefit Plans Non U.S. Pension Benefit
Plans Postretirement Health Care Benefits Plan
Years ended December 31 2013 2012 2011 2013 2012 2011 2013 2012 2011
Service cost $ — $ — $ — $ 11 $ 10 $ 17 $ 2 $ 3 $ 4
Interest cost 352 349 344 70 75 72 11 16 22
Expected return on plan
assets (364) (421) (390) (79)(78)(77)(10)(12)(16)
Amortization of:
Unrecognized net loss 130 260 189 15 22 17 14 12 10
Unrecognized prior
service benefit —— — (6)(3)(9)(43)(16) —
Settlement/curtailment
loss (gain) —— 8 ——(9)—— —
Net periodic pension cost
(benefit) $ 118 $ 188 $ 151 $ 11 $ 26 $ 11 $(26)$ 3 $ 20
The amendment to the Postretirement Health Care Benefits Plan effective January 1, 2013 resulted in a remeasurement
of the plan generating an $87 million decrease in accumulated other comprehensive loss, net of taxes. The majority of that $87
million decrease will be recognized over approximately three years, or the period in which the remaining employees eligible for
the plan will quality for benefits under the plan. During the year ended December 31, 2013, $43 million of prior service cost
credit was recognized, including the amount associated with the 2012 amendment resulting in a net credit for periodic cost in
2013.