Motorola 2015 Annual Report Download - page 73

72
The status of the Company’s plans is as follows:
U.S. Pension Benefit
Plans
Non U.S. Pension
Benefit Plans
Postretirement
Health Care Benefits
Plan
2015 2014 2015 2014 2015 2014
Change in benefit obligation:
Benefit obligation at January 1 $4,536$7,317$2,075$1,904$212$278
Service cost ——12 15 12
Interest cost 193 370 66 80 810
Plan amendments ——1——(41)
Settlements/curtailments —(4,227) (5) ———
Actuarial loss (gain) (319) 1,357 (151) 263 (12) (14)
Foreign exchange valuation adjustment ——(123) (146) ——
Employee contributions ——22——
Benefit payments (106) (281) (62) (43) (17) (23)
Benefit obligation at December 31 4,304 4,536 1,815 2,075 192 212
Change in plan assets:
Fair value at January 1 3,317 6,071 1,806 1,513 163 161
Return on plan assets (84) 642 33 191 (6) 21
Company contributions 31,112 10 237 ——
Settlements —(3,196) ————
Employee contributions ——22——
Foreign exchange valuation adjustment ——(93) (96) ——
Lump sum settlements —(1,031) ————
Benefit payments (106) (281) (62) (41) (14) (19)
Fair value at December 31 3,130 3,317 1,696 1,806 143 163
Funded status of the plan (1,174) (1,219) (119) (269) (49) (49)
Unrecognized net loss 1,777 1,846 453 593 104 109
Unrecognized prior service benefit ———(35) (24) (83)
Prepaid (accrued) pension cost $ 603 $ 627 $ 334 $ 289 $31$(23)
Components of prepaid (accrued) pension cost:
Non-current benefit liability $ (1,174) $ (1,219) $(119)$(269)$(49)$(49)
Deferred income taxes 657 701 46 51 31 10
Accumulated other comprehensive loss 1,120 1,145 407 507 49 16
Prepaid (accrued) pension cost $ 603 $ 627 $ 334 $ 289 $31$(23)
The net funded status of the of the Non U.S. Pension Benefit Plans primarily reflects a net underfunded status of $224
million related to Germany and a net overfunded status of $105 million related to the United Kingdom as of December 31, 2015.
The benefit obligation and plan assets for the Company's plans are measured as of December 31, 2015. The Company
utilizes a five-year, market-related asset value method of recognizing asset related gains and losses.
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
eleven to thirty-five years. Prior service costs are amortized over periods ranging from two to nine years. Benefits under all
pension plans are valued based on the projected unit credit cost method.
The net periodic cost for 2016 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 $38
million and $11 million, respectively. It is estimated that the 2016 net periodic expense for the Postretirement Health Care
Benefits Plan will include amortization of a net credit of $16 million, comprised of the unrecognized prior service gain and
unrecognized actuarial loss, currently included in Accumulated other comprehensive loss.