Motorola 2014 Annual Report Download - page 73

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The status of the Company’s plans are as follows:
U.S. Pension Benefit
Plans Non U.S. Pension Benefit Plans
Postretirement
Health Care Benefits
Plan
2014 2013 2014 2013 2014 2013
Change in benefit obligation:
Benefit obligation at January 1 $ 7,317 $ 8,288 $ 1,904 $ 1,771 $ 278 $ 322
Service cost ——15 11 22
Interest cost 370 352 80 69 10 11
Plan amendments ————(41) —
Settlements (4,227) —————
Actuarial loss (gain) 1,357 (1,012) 263 91 (14) (37)
Foreign exchange valuation adjustment ——(146) (1) ——
Employee contributions ——22——
Benefit payments (281) (311) (43) (39) (23) (20)
Benefit obligation at December 31 4,536 7,317 2,075 1,904 212 278
Change in plan assets:
Fair value at January 1 6,071 5,426 1,513 1,343 161 155
Return on plan assets 642 806 191 182 21 22
Company contributions 1,112 150 237 32 ——
Settlements (3,196) —————
Employee contributions ——22——
Foreign exchange valuation adjustment ——(96) (8) ——
Lump sum settlements (1,031) —————
Benefit payments (281) (311) (41) (38) (19) (16)
Fair value at December 31 3,317 6,071 1,806 1,513 163 161
Funded status of the plan (1,219) (1,246) (269) (391) (49) (117)
Unrecognized net loss 1,846 2,732 593 483 109 143
Unrecognized prior service benefit ——(35) (44) (83) (92)
Prepaid (accrued) pension cost $ 627 $ 1,486 $ 289 $ 48 $ (23) $ (66)
Components of prepaid (accrued) pension cost:
Non-current benefit liability $ (1,219) $ (1,246) $ (269) $ (391) $ (49) $ (117)
Deferred income taxes 701 1,002 51 28 10 19
Accumulated other comprehensive loss 1,145 1,730 507 411 16 32
Prepaid (accrued) pension cost $ 627 $ 1,486 $ 289 $ 48 $ (23) $ (66)
The benefit obligation and plan assets for the Company's plans are measured as of December 31, 2014. The Company
utilizes a five-year, market-related asset value method of recognizing asset related gains and losses.
Prior to 2013, unrecognized gains and losses were amortized over periods ranging from three to thirteen years. At the
close of fiscal 2012, the Company determined that the majority of the Company's plan participants in its Regular Pension Plan
and United Kingdom pension plan were no longer actively employed by the Company due to significant employee exits as a
result of the Company's divestitures. Under relevant accounting rules, when almost all of the plan participants are considered
inactive, the amortization period for certain unrecognized losses changes from the average remaining service period to the
average remaining lifetime of the participants. As such, depending on the specific plan, the Company amortizes gains and losses
over periods ranging from four to thirty-six years. Prior service costs are amortized over periods ranging from six to twelve years.
Benefits under all pension plans are valued based on the projected unit credit cost method.
The net periodic cost for 2015 will include amortization of the unrecognized net loss and prior service costs for the U.S.
Pension Benefit Plans and Non U.S. Pension Benefit Plans, currently included in Accumulated other comprehensive loss, of $47
million and $11 million, respectively. It is estimated that the 2015 net periodic expense for the Postretirement Health Care
Benefits Plan will include amortization of a net credit of $49 million, comprised of the unrecognized prior service gain and
unrecognized actuarial loss, currently included in Accumulated other comprehensive loss.