Motorola 2008 Annual Report Download - page 103

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operations, even though the related securities were not considered impaired. Because the Sigma Fund uses
investment-company accounting in its stand-alone financial statements, it marks the investments in the fund to
market and records all unrealized gains or losses in earnings, whether or not the related securities are considered
impaired. The Company has determined that the stand-alone accounting policies of the Sigma Fund should be
retained in its consolidated financial statements. Accordingly, the Company recorded $101 million of accumulated
temporary unrealized losses in Sigma Fund investments in its consolidated statements of operations during the
three months ended December 31, 2008, which represents all of the temporary unrealized gains and losses that
have accumulated in Sigma Fund investments as of December 31, 2008. Portions of the temporary unrealized
losses recognized in the three months ended December 31, 2008 arose in periods prior to the three months ended
December 31, 2008 and should have been reflected in the Company’s consolidated statements of operations in the
periods in which they arose. The Company has determined that the impact of the amounts that arose in prior
periods is not material to the consolidated results of operations of those prior periods.
During the year ended December 31, 2008, the Company recorded total charges related to Sigma Fund
investments, including temporary unrealized losses and impairment charges, of $287 million in its consolidated
statement of operations. During the year ended December 31, 2007, the Company recorded total charges of
$18 million, all of which were impairment charges, in its consolidated statements of operations. There were no
temporary unrealized losses or impairment charges in the Sigma Fund investment portfolio during the year ended
December 31, 2006.
Investments
Investments consist of the following:
December 31, 2008
Short-term
Investments Investments
Unrealized
Gains
Unrealized
Losses
Cost
Basis
Recorded Value Less
Certificates of deposit $225 $ — $— $— $225
Available-for-sale securities:
U.S. government and agency obligations — 25 1 — 24
Corporate bonds — 7 — — 7
Asset-backed securities — 1 — — 1
Common stock and equivalents — 128 5 (2) 125
225 161 6 (2) 382
Other securities, at cost — 296 — — 296
Equity method investments — 60 — — 60
$225 $517 $ 6 $(2) $738
December 31, 2007 Short-term
Investments Investments Unrealized
Gains Unrealized
Losses Cost
Basis
Recorded Value Less
Certificates of deposit $509 $ — $— $ — $ 509
Available-for-sale securities:
U.S. government and agency obligations 19 — — — 19
Corporate bonds 1 — — — 1
Common stock and equivalents — 333 40 (79) 372
Other 83 — — — 83
612 333 40 (79) 984
Other securities, at cost — 414 — — 414
Equity method investments — 90 — — 90
$612 $837 $40 $(79) $1,488
At December 31, 2008, the Company had $225 million in short-term investments (which are highly-liquid
fixed-income investments with an original maturity greater than three months but less than one year), compared to
$612 million of short-term investments at December 31, 2007.
95