Motorola 2007 Annual Report Download - page 82

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Fair Value of Financial Instruments
The Company’s financial instruments include cash equivalents, Sigma Fund investments, short-term
investments, accounts receivable, long-term finance receivables, accounts payable, accrued liabilities, derivatives
and other financing commitments. The Company’s Sigma Fund and investment portfolios and derivatives are
recorded in the Company’s consolidated balance sheets at fair value. All other financial instruments, with the
exception of long-term debt, are carried at cost, which is not materially different than the instruments’ fair values.
Using quoted market prices and market interest rates, the Company determined that the fair value of long-
term debt at December 31, 2007 was $4.2 billion, compared to a carrying value of $4.2 billion. Since considerable
judgment is required in interpreting market information, the fair value of the long-term debt is not necessarily
indicative of the amount which could be realized in a current market exchange.
Equity Price Market Risk
At December 31, 2007, the Company’s available-for-sale securities portfolio had an approximate fair market
value of $333 million, which represented a cost basis of $372 million and a net unrealized loss of $39 million. The
value of the available-for-sale securities would change by $33 million as of year-end 2007 if the price of the stock
in each of the publicly-traded companies were to change by 10%. These equity securities are held for purposes
other than trading.
»Reg. U.S. Patent & Trademark Office.
“MOTOROLA” and “Stylized M Logo” are registered trademarks of Motorola, Inc. throughout the world.
These marks are valuable corporate assets. Certain other trademarks and service marks of Motorola are registered
in relevant markets. Motorola’s increasing focus on marketing products directly to consumers is reflected in an
increasing emphasis on brand equity creation and protection. All other products or service names are the property
of their respective owners.
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