Motorola 2010 Annual Report Download - page 109

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The weighted-average asset allocation for plan assets by asset categories:
Actual Mix
December 31 2010 2009
Equity securities 65% 67%
Fixed income securities 33% 30%
Cash and other investments 2% 3%
Within the equity securities asset class, the investment policy provides for investments in a broad range of
publicly-traded securities including both domestic and international stocks. Within the fixed income securities asset
class, the investment policy provides for investments in a broad range of publicly-traded debt securities ranging from
U.S. Treasury issues, corporate debt securities, mortgages and asset-backed issues, as well as international debt
securities. In the cash asset class, investments may be in cash and cash equivalents.
The Company expects to make no cash contributions to the Postretirement Health Care Benefits Plan in 2011.
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
Year
2011 $33
2012 32
2013 31
2014 30
2015 29
2016-2020 152
The health care cost trend rate used to determine the December 31, 2010 accumulated postretirement benefit
obligation is 7.25% for 2011. This rate is expected to remain flat thru 2013, with a decline in years 2014 and 2015
until it reaches 5% in 2016. Beyond 2016, this rate is expected to remain flat at 5%. The health care trend rate used
to determine the December 31, 2009 accumulated postretirement benefit obligation was 8.5%.
Changing the health care trend rate by one percentage point would change the accumulated postretirement
benefit obligation and the net retiree health care expense as follows:
1% Point
Increase
1% Point
Decrease
Increase (decrease) in:
Accumulated postretirement benefit obligation $14 $(13)
Net retiree health care expense 1 (1)
The Company maintains a lifetime cap on postretirement health care costs, which reduces the liability duration
of the plan. A result of this lower duration is a decreased sensitivity to a change in the discount rate trend
assumption with respect to the liability and related expense.
The Company has no significant Postretirement Health Care Benefit Plans outside the United States.
Other Benefit Plans
The Company maintains a number of endorsement split-dollar life insurance policies that were taken out on
now-retired officers under a plan that was frozen prior to December 31, 2004. The Company had purchased the life
insurance policies to insure the lives of employees and then entered into a separate agreement with the employees
that split the policy benefits between the Company and the employee. Motorola Solutions owns the policies,
controls all rights of ownership, and may terminate the insurance policies. To effect the split-dollar arrangement,
Motorola Solutions endorsed a portion of the death benefits to the employee and upon the death of the employee,
the employee’s beneficiary typically receives the designated portion of the death benefits directly from the insurance
company and the Company receives the remainder of the death benefits.
The Company adopted new accounting guidance on accounting for split-dollar life insurance arrangements as
of January 1, 2008. This guidance requires that a liability for the benefit obligation be recorded because the promise