Motorola 2007 Annual Report Download - page 24

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Backlog. Motorola’s aggregate backlog position for all Motorola segments, as of the end of the last two
fiscal years was approximately as follows:
December 31, 2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.5 billion
December 31, 2006. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6.6 billion
Except as previously discussed in this Item 1, the orders supporting the 2007 backlog amounts shown in the
foregoing table are believed to be generally firm, and approximately 89% of the backlog on hand at December 31,
2007 is expected to be recognized as revenue in 2008. The forward-looking estimate of the firmness of such orders
is subject to future events that may cause the amount recognized to change.
Research and Development. Motorola’s business segments participate in very competitive industries with
constant changes in technology. Throughout its history, Motorola has relied, and continues to rely, primarily on its
research and development (“R&D”) programs for the development of new products, and on its production
engineering capabilities for the improvement of existing products. Technical data and product application ideas are
exchanged among Motorola’s business segments on a regular basis. Management believes, looking forward, that
Motorola’s commitment to R&D programs should allow each of its segments to remain competitive.
R&D expenditures relating to new product development or product improvement were $4.4 billion in 2007,
compared to $4.1 billion in 2006 and $3.6 billion in 2005. R&D expenditures increased 8% in 2007 as compared
to 2006, after increasing 14% in 2006 as compared to 2005. Motorola continues to believe that a strong
commitment to research and development is required to drive long-term growth. Approximately 27,000
professional employees were engaged in such R&D activities during 2007.
Patents and Trademarks. Motorola seeks to obtain patents and trademarks to protect our proprietary
position whenever possible and practical. As of December 31, 2007, Motorola, Inc. and its wholly owned
subsidiaries owned approximately 10,064 utility and design patents in the U.S. and 12,914 patents in foreign
countries. These foreign patents are mostly counterparts of Motorola’s U.S. patents, but a number result from
research conducted outside the U.S. and are originally filed in the country of origin. During 2007, Motorola, Inc.
and its wholly owned subsidiaries were granted 696 U.S. utility and design patents. Many of the patents owned by
Motorola are used in its operations or licensed for use by others, and Motorola is licensed to use certain patents
owned by others. Royalty and licensing fees vary from year to year and are subject to the terms of the agreements
and sales volumes of the products subject to licenses.
Environmental Quality. Compliance with federal, state and local laws regulating the discharge of materials
into the environment, or otherwise relating to the protection of the environment, has no material effect on capital
expenditures, earnings or the competitive position of Motorola.
Employees. At December 31, 2007 and December 31, 2006, there were approximately 66,000 employees of
Motorola and its subsidiaries.
Financial Information About Geographic Areas. The response to this section of Item 1 incorporates by
reference Note 10, “Commitments and Contingencies” and Note 11, “Information by Segment and Geographic
Region” of Part II, Item 8: Financial Statements and Supplementary Data of this document, the “Results of
Operations—2007 Compared to 2006” and “Results of Operations—2006 Compared to 2005” sections of Part II,
“Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item A:
Risk Factors” of this document.
Available Information
We make available free of charge through our website, www.motorola.com/investor, our annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, other reports filed
under the Securities Exchange Act of 1934 (“Exchange Act”) and all amendments to those reports as soon as
reasonably practicable after such material is electronically filed with, or furnished to, the Securities and Exchange
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