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Retirement Benefits | 12 Months Ended
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Dec. 31, 2023
Retirement Benefits [Abstract] |
Retirement Benefits | Retirement Benefits Pension and Postretirement Health Care Benefits Plans U.S. Pension Benefit Plans The Company’s non-contributory U.S. defined benefit plans (the "U.S. Pension Plans") provide benefits to U.S. employees hired prior to January 1, 2005, who became eligible after one year of service. The Company also has an additional non-contributory supplemental retirement benefit plan, the Motorola Supplemental Pension Plan ("MSPP"), which provided supplemental benefits to individuals by replacing benefits that are lost by such individuals under the retirement formula due to application of the limitations imposed by the Internal Revenue Code. In December 2008, the Company amended the U.S. Pension Plans and MSPP (together the "U.S. Pension Benefit Plans") such that, effective March 1, 2009: (i) no participant shall accrue any benefit or additional benefit on or after March 1, 2009, and (ii) no compensation increases earned by a participant on or after March 1, 2009 shall be used to compute any accrued benefit. Postretirement Health Care Benefits Plan Certain health care benefits are available to eligible domestic employees hired prior to January 1, 2002 and meeting certain age and service requirements upon termination of employment or retirement eligibility (the “Postretirement Health Care Benefits Plan”). As of January 1, 2005, the Postretirement Health Care Benefits Plan was closed to new participants. After a series of amendments, all eligible retirees under the age of 65 are provided an annual subsidy per household, versus per individual, toward the purchase of their own health care coverage from private insurance companies and for the reimbursement of eligible health care expenses. All eligible retirees over the age of 65 are entitled to one fixed-rate subsidy capped at $560 per participant. Non-U.S. Pension Benefit Plans The Company also provides defined benefit plans which cover non-U.S. employees in certain jurisdictions, principally the U.K. and Germany (the “Non-U.S. Pension Benefit Plans”). Other pension plans outside of the U.S. are not material to the Company either individually or in the aggregate. In June 2015, the Company amended its non-U.S. defined benefit plan within the United Kingdom by closing future benefit accruals to all participants effective December 31, 2015. Net Periodic Cost (Benefit) The net periodic cost (benefit) for pension and Postretirement Health Care Benefits plans was as follows:
| U.S. Pension Benefit Plans |  | Non-U.S. Pension Benefit Plans |  | Postretirement Health Care Benefits Plan
Years ended December 31 | 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
Service cost | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest cost | 190 |  |  | 128 |  |  | 115 |  |  | 56 |  |  | 29 |  |  | 21 |  |  | 5 |  |  | 2 |  |  | 1 |
Expected return on plan assets | (293) |  |  | (254) |  |  | (235) |  |  | (108) |  |  | (93) |  |  | (99) |  |  | (13) |  |  | (12) |  |  | (11) |
Amortization of: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrecognized net loss | 22 |  |  | 62 |  |  | 70 |  |  | 37 |  |  | 14 |  |  | 16 |  |  | 2 |  |  | 4 |  |  | 3 |
Unrecognized prior service benefit | — |  |  | — |  |  | — |  |  | (2) |  |  | (2) |  |  | (3) |  |  | 3 |  |  | — |  |  | (5) |
Net periodic cost (benefit) | $ | (81) |  |  | $ | (64) |  |  | $ | (50) |  |  | $ | (16) |  |  | $ | (51) |  |  | $ | (64) |  |  | $ | (3) |  |  | $ | (6) |  |  | $ | (12) |
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
| 2023 |  | 2022 |  | 2023 |  | 2022 |  | 2023 |  | 2022
Change in benefit obligation: |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at January 1 | $ | 3,809 |  |  | $ | 5,140 |  |  | $ | 1,207 |  |  | $ | 1,935 |  |  | $ | 103 |  |  | $ | 78 |
Service cost | — |  |  | — |  |  | 1 |  |  | 1 |  |  | — |  |  | — |
Interest cost | 190 |  |  | 128 |  |  | 56 |  |  | 29 |  |  | 5 |  |  | 2 |
Plan amendments | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 46 |
Actuarial loss (gain) | 59 |  |  | (1,329) |  |  | 62 |  |  | (534) |  |  | 2 |  |  | (12) |
Foreign exchange valuation adjustment | — |  |  | — |  |  | 66 |  |  | (174) |  |  | — |  |  | — |
Benefit payments | (130) |  |  | (130) |  |  | (45) |  |  | (50) |  |  | (14) |  |  | (11) |
Benefit obligation at December 31 | $ | 3,928 |  |  | $ | 3,809 |  |  | $ | 1,347 |  |  | $ | 1,207 |  |  | $ | 96 |  |  | $ | 103 |
Change in plan assets: |  |  |  |  |  |  |  |  |  |  |
Fair value at January 1 | $ | 3,076 |  |  | $ | 4,157 |  |  | $ | 1,092 |  |  | $ | 1,870 |  |  | $ | 134 |  |  | $ | 186 |
Return on plan assets | 324 |  |  | (954) |  |  | 56 |  |  | (555) |  |  | 14 |  |  | (41) |
Company contributions | 3 |  |  | 3 |  |  | 9 |  |  | 8 |  |  | — |  |  | — |
Foreign exchange valuation adjustment | — |  |  | — |  |  | 60 |  |  | (181) |  |  | — |  |  | — |
Benefit payments | (130) |  |  | (130) |  |  | (45) |  |  | (50) |  |  | (14) |  |  | (11) |
Fair value at December 31 | $ | 3,273 |  |  | $ | 3,076 |  |  | $ | 1,172 |  |  | $ | 1,092 |  |  | $ | 134 |  |  | $ | 134 |
Funded status of the plan | $ | (655) |  |  | $ | (733) |  |  | $ | (175) |  |  | $ | (115) |  |  | $ | 38 |  |  | $ | 31 |
Unrecognized net loss | 1,695 |  |  | 1,689 |  |  | 829 |  |  | 758 |  |  | 68 |  |  | 70 |
Unrecognized prior service benefit (cost) | — |  |  | — |  |  | (67) |  |  | (70) |  |  | 44 |  |  | 46 |
Prepaid pension cost | $ | 1,040 |  |  | $ | 956 |  |  | $ | 587 |  |  | $ | 573 |  |  | $ | 150 |  |  | $ | 147 |
Components of prepaid (accrued) pension cost: |  |  |  |  |  |  |  |  |  |  |
Current benefit liability | $ | (2) |  |  | $ | (3) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Non-current benefit liability | (653) |  |  | (730) |  |  | (210) |  |  | (185) |  |  | — |  |  | — |
Non-current benefit asset | — |  |  | — |  |  | 35 |  |  | 70 |  |  | 38 |  |  | 31 |
Deferred income taxes | 403 |  |  | 403 |  |  | 102 |  |  | 83 |  |  | 31 |  |  | 32 |
Accumulated other comprehensive loss | 1,292 |  |  | 1,286 |  |  | 660 |  |  | 605 |  |  | 81 |  |  | 84 |
Prepaid pension cost | $ | 1,040 |  |  | $ | 956 |  |  | $ | 587 |  |  | $ | 573 |  |  | $ | 150 |  |  | $ | 147 |
For the year ended December 31, 2023, the primary driver of the increase in the U.S. Pension Benefit Plans' benefit obligation was higher actuarial losses due to a decrease in the discount rate from 5.20% as of December 31, 2022 to 5.01% as of December 31, 2023, partially offset by actuarial gains in the benefit obligation due to updated lump-sum interest rates and mortality. For the year ended December 31, 2022, the primary driver of the decrease in the U.S. Pension Benefit Plans benefit obligation was higher actuarial gains due to an increase in the discount rate from 2.98% as of December 31, 2021 to 5.20% as of December 31, 2022. For the year ended December 31, 2023, the most significant drivers of the increase in Non-U.S. Pension Benefit Plans' benefit obligation were the higher actuarial losses coupled with unfavorable foreign exchange effects. The Non-U.S. Pension Benefit Plans incurred actuarial losses primarily due to decreases in the discount rates from 4.60% as of December 31, 2022 to 4.30% as of December 31, 2023. For the year ended December 31, 2022, the most significant drivers of the decrease in Non-U.S. Pension Benefit Plans' benefit obligation were the higher actuarial gains coupled with favorable foreign exchange effects. The Non-U.S. Pension Benefit Plans incurred actuarial gains primarily due to an increase in the discount rate from 1.82% as of December 31, 2021 to 4.60% as of December 31, 2022. Actuarial Assumptions Certain actuarial assumptions such as the discount rate and the long-term rate of return on plan assets have a significant effect on the amounts reported for net periodic cost and the benefit obligation. The assumed discount rates reflect the prevailing market rates of a universe of high-quality, non-callable, corporate bonds currently available that, if the obligation were settled at the measurement date, would provide the necessary future cash flows to pay the benefit obligation when due. The long-term rates of return on plan assets represent an estimate of long-term returns on an investment portfolio consisting of a mixture of equities, fixed income, cash and other investments similar to the actual investment mix. In determining the long-term return on plan assets, the Company considers long-term rates of return on the asset classes (both historical and forecasted) in which the Company expects the plan funds to be invested. The Company uses a full yield curve approach to estimate interest and service cost components of net periodic cost (benefit) for defined benefit pension and other post-retirement benefit plans. The full yield curve approach requires the application of the specific spot rate along the yield curve used in the determination of the projected benefit obligation to the relevant projected cash flows. The Company used "Mortality Improvement Scale MP-2021" to calculate both the 2023 U.S. projected benefit obligations and the 2022 U.S. projected benefit obligations. Weighted average actuarial assumptions used to determine costs for the plans at the beginning of the fiscal year were as follows:
| U.S. Pension Benefit Plans |  | Non-U.S. Pension Benefit Plans |  | Postretirement Health Care Benefits Plan
| 2023 |  | 2022 |  | 2023 |  | 2022 |  | 2023 |  | 2022
Discount rate | 5.09 | % |  | 2.52 | % |  | 4.68 | % |  | 1.68 | % |  | 5.05 | % |  | 2.78 | %
Investment return assumption | 7.87 | % |  | 6.76 | % |  | 6.18 | % |  | 4.78 | % |  | 8.00 | % |  | 6.90 | %
Weighted average actuarial assumptions used to determine benefit obligations for the plans were as follows:
| U.S. Pension Benefit Plans |  | Non-U.S. Pension Benefit Plans |  | Postretirement Health Care Benefits Plan
| 2023 |  | 2022 |  | 2023 |  | 2022 |  | 2023 |  | 2022
Discount rate | 5.01 | % |  | 5.20 | % |  | 4.30 | % |  | 4.60 | % |  | 4.92 | % |  | 5.10 | %
Future compensation increase rate | n/a |  | n/a |  | 0.67 | % |  | 0.67 | % |  | n/a |  | n/a
The following table presents the accumulated benefit obligation, projected benefit obligation and fair value of plan assets for our plans that have an accumulated benefit obligation and projected benefit obligation in excess of plan assets:
| U.S. Pension Benefit Plans |  | Non U.S. Pension Benefit Plans |
December 31 | 2023 |  | 2022 |  | 2023 |  | 2022 |  |  |
Accumulated benefit obligation | $ | 3,928 |  |  | $ | 3,809 |  |  | $ | 1,346 |  |  | $ | 1,206 |  |  |  |
Projected benefit obligation | 3,928 |  |  | 3,809 |  |  | 1,347 |  |  | 1,207 |  |  |  |
Fair value of plan assets | 3,273 |  |  | 3,076 |  |  | 1,172 |  |  | 1,092 |  |  |  |
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 not limited to: equity and fixed income securities, cash, cash equivalents, hedge funds, infrastructure/utilities, insurance contracts, leveraged loan funds and real estate. 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, 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 plans and the Postretirement Health Care Benefits Plan were as follows:
| All Pension Benefit Plans |  | Postretirement Health Care Benefits Plan
December 31 | 2023 |  | 2022 |  | 2023 |  | 2022
Target Mix: |  |  |  |  |  |  |
Equity securities | 26 | % |  | 25 | % |  | 28 | % |  | 28 | %
Fixed income securities | 56 | % |  | 57 | % |  | 51 | % |  | 52 | %
Cash and other investments | 18 | % |  | 18 | % |  | 21 | % |  | 20 | %
Actual Mix: |  |  |  |  |  |  |
Equity securities | 26 | % |  | 25 | % |  | 28 | % |  | 28 | %
Fixed income securities | 56 | % |  | 56 | % |  | 52 | % |  | 52 | %
Cash and other investments | 18 | % |  | 19 | % |  | 20 | % |  | 20 | %
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 made $3 million of contributions to its U.S. Pension Benefit Plans during each of 2023 and 2022. The Company contributed $9 million and $8 million to its Non U.S. Pension Benefit Plans during 2023 and 2022, respectively. The Company made no contributions to its Postretirement Health Care Benefits Plan in 2023 or 2022. 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
2024 | $ | 183 |  |  | $ | 47 |  |  | $ | 15 |
2025 | 205 |  |  | 50 |  |  | 14 |
2026 | 224 |  |  | 51 |  |  | 12 |
2027 | 242 |  |  | 52 |  |  | 11 |
2028 | 260 |  |  | 53 |  |  | 9 |
2029-2033 | 1,409 |  |  | 271 |  |  | 30 |
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 frozen plan. 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. It is currently expected that minimal cash payments will be required to fund these policies. The net periodic pension cost for these split-dollar life insurance arrangements was $5 million for the years ended December 31, 2023, 2022 and 2021. The Company has recorded a liability representing the actuarial present value of the future death benefits as of the employees’ expected retirement date of $52 million and $54 million as of December 31, 2023 and December 31, 2022, respectively. Deferred Compensation Plan The Company maintains a deferred compensation plan (“the Plan”) for certain eligible participants. Under the Plan, participants may elect to defer base salary and cash incentive compensation in excess of 401(k) plan limitations. Participants under the Plan may choose to invest their deferred amounts in the same investment alternatives available under the 401(k) plan (as defined below). The Plan also allows for Company matching contributions for the following: (i) the first 4% of compensation deferred under the Plan, subject to a maximum of $50,000 for officers elected by the board of directors of the Company, (ii) lost matching amounts that would have been made under the 401(k) plan if participants had not participated in the Plan, and (iii) discretionary amounts as approved by the Compensation and Leadership Committee of the board of directors. Defined Contribution Plan The Company has various defined contribution plans, in which all eligible employees may participate. In the U.S., the Motorola Solutions 401(k) plan (the "401(k) plan") is a contributory plan. Matching contributions are based upon the amount of the employees’ contributions. The Company’s expenses for material defined contribution plans for the years ended December 31, 2023, 2022 and 2021 were $45 million, $43 million and $36 million, respectively. Under the 401(k) plan, the Company may make an additional discretionary matching contribution to eligible employees. For the years ended December 31, 2023, 2022, and 2021 the Company made no discretionary contributions.

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