Motorola 2014 Annual Report Download - page 75

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Investment Policy
The individual plans have adopted an investment policy designed to meet or exceed the expected rate of return on plan
assets assumption. To achieve this, the plans retain professional advisors and investment managers that invest plan assets into
various classes including, but are not limited to, equity, fixed income securities, cash, cash equivalents, commodities, hedge
funds, infrastructure/utilities, insurance contracts, leveraged loan funds and real estate. In addition, some plans invest in
insurance contracts. The Company uses long-term historical actual return experience with consideration of the expected
investment mix of the plans’ assets, as well as future estimates of long-term investment returns, to develop its expected rate of
return assumption used in calculating the net periodic cost. The individual plans have target mixes for these asset classes for all
plans, which are readjusted periodically when an asset class weighting deviates from the target mix, with the goal of achieving
the required return at a reasonable risk level.
The weighted-average asset allocations by asset categories for all pension and the Postretirement Health Care Benefits
plans were as follows:
All Pension Benefit Plans Postretirement Health Care
Benefits Plan
December 31 2014 2013 2014 2013
Target Mix:
Equity securities 41% 55% 37% 57%
Fixed income securities 44% 43% 42% 42%
Cash and other investments 15% 2% 21% 1%
Actual Mix:
Equity securities 43% 55% 20% 58%
Fixed income securities 44% 42% 20% 40%
Cash and other investments 13% 3% 60% 2%
Within the equity securities asset class, the investment policy provides for investments in a broad range of publicly-traded
securities including both domestic and foreign equities. Within the fixed income securities asset class, the investment policy
provides for investments in a broad range of publicly-traded debt securities including U.S. Treasury issues, corporate debt
securities, mortgage and asset-backed securities, as well as foreign debt securities. In the cash and other investments asset
class, investments may include, but are not limited to, cash, cash equivalents, commodities, hedge funds, infrastructure/utilities,
insurance contracts, leveraged loan funds and real estate.
Cash Funding
The Company contributed $1.1 billion to its U.S. Pension Benefit Plans during 2014, compared to $150 million contributed
in 2013. The Company contributed $237 million to its Non U.S. Pension Benefit Plans during 2014, compared to $32 million
contributed in 2013. The Company expects to make no cash contributions to its U.S. Pension Benefit Plans and approximately
$12 million to its Non U.S. Pension Benefit Plans in 2015. The Company does not expect to make cash contributions to the
Postretirement Health Care Benefits Plan in 2015.
Expected Future Benefit Payments
The following benefit payments are expected to be paid:
Year U.S. Pension Benefit Plans
Non U.S.
Pension
Benefit Plans
Postretirement
Health Care
Benefits Plan
2015 $ 95 $ 42 $ 20
2016 93 43 19
2017 108 44 18
2018 122 45 17
2019 143 46 16
2020-2024 1,030 245 67
Other Benefit Plans
Split-Dollar Life Insurance Arrangements
The Company maintains a number of endorsement split-dollar life insurance policies 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