Motorola 2007 Annual Report Download - page 107

Download and view the complete annual report

Please find page 107 of the 2007 Motorola annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

participants’ expected retirement benefits when the participants meet the minimum age and years of service
requirements. Elected officers who were not yet vested in the Officers’ Plan as of December 31, 1999 had the
option to remain in the Officers’ Plan or elect to have their benefit bought out in restricted stock units. Effective
December 31, 1999, newly elected officers are not eligible to participate in the Officers’ Plan. Effective June 30,
2005, salaries were frozen for this plan.
The Company has an additional noncontributory supplemental retirement benefit plan, the Motorola
Supplemental Pension Plan (“MSPP”), which provides supplemental benefits in excess of the limitations imposed
by the Internal Revenue Code on the Regular Pension Plan. Elected officers covered under the Officers’ Plan or
who participated in the restricted stock buy-out are not eligible to participate in MSPP. Effective January 1, 2005,
newly hired employees were not eligible to participate in the MSPP. Effective January 1, 2007, eligible
compensation has been capped at the IRS limit plus $175,000 or, for those in excess of this cap at January 1,
2007, the eligible compensation used to compute the employee’s MSPP benefit is the greater of: (i) the employee’s
frozen January 1, 2007 eligible compensation amount, or (ii) the earnings cap for the given year.
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 will be 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. Also, effective
January 2008, the Company amended the Regular Pension Plan, modifying the vesting period from five years to
three years.
The net periodic pension cost for the Regular Pension Plan, Officers’ Plan and MSPP and Non-U.S. plans was
as follows:
Regular Pension Plan
Years Ended December 31 2007 2006 2005
Service cost $ 133 $ 150 $ 142
Interest cost 311 309 280
Expected return on plan assets (350) (329) (315)
Amortization of:
Unrecognized net loss 107 115 75
Unrecognized prior service cost (27) (5) (5)
Net periodic pension cost $ 174 $ 240 $ 177
Officers’ Plan and MSPP
Years Ended December 31 2007 2006 2005
Service cost $4 $ 5 $10
Interest cost 789
Expected return on plan assets (3) (4) (3)
Amortization of:
Unrecognized net loss 455
Unrecognized prior service cost (1) —1
Settlement/curtailment loss 6412
Net periodic pension cost $17 $18 $34
Non-U.S. Plans
Years Ended December 31 2007 2006 2005
Service cost $45 $40 $44
Interest cost 90 67 67
Expected return on plan assets (76) (54) (52)
Amortization of unrecognized net loss 14 17 14
Net periodic pension cost $73 $70 $73
99