Motorola 2008 Annual Report Download - page 24

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, 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.0 billion
December 31, 2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.5 billion
Except as previously discussed in this Item 1, the orders supporting the 2008 backlog amounts shown in the
foregoing table are believed to be generally firm, and approximately 90% of the backlog on hand at December 31,
2008 is expected to be recognized as revenue in 2009. 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 $4.1 billion in 2008,
compared to $4.4 billion in 2007 and $4.1 billion in 2006. R&D expenditures decreased 7% in 2008 as compared
to 2007, after increasing 8% in 2007 as compared to 2006. Motorola continues to believe that a strong
commitment to research and development is required to drive long-term growth. As of December 31, 2008,
approximately 27,000 professional employees were engaged in such R&D activities.
Patents and Trademarks. Motorola seeks to obtain patents and trademarks to protect our proprietary
position whenever possible and practical. As of December 31, 2008, Motorola, Inc. and its wholly owned
subsidiaries owned approximately 9,907 utility and design patents in the U.S. and 12,793 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 2008, Motorola, Inc.
and its wholly owned subsidiaries were granted 644 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. During 2008, compliance with federal, state and local laws regulating the discharge
of materials into the environment, or otherwise relating to the protection of the environment, did not have a
material effect on capital expenditures, earnings or the competitive position of Motorola.
Employees. At December 31, 2008, there were approximately 64,000 employees of Motorola and its
subsidiaries, compared to 66,000 employees of Motorola and its subsidiaries at December 31, 2007.
Financial Information About Geographic Areas. The response to this section of Item 1 incorporates by
reference Note 11, “Commitments and Contingencies” and Note 12, “Information by Segment and Geographic
Region” of Part II, Item 8: Financial Statements and Supplementary Data of this document, the “Results of
Operations—2008 Compared to 2007” and “Results of Operations — 2007 Compared to 2006” 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 simultaneously
or as soon as reasonably practicable after such material is electronically filed with, or furnished to, the Securities
and Exchange Commission (“SEC”). Our reports are also available free of charge on the SEC’s website,
www.sec.gov. Also available free of charge on our website are the following corporate governance documents:
• Motorola, Inc. Restated Certificate of Incorporation
• Motorola, Inc. Amended and Restated Bylaws
• Motorola, Inc. Board Governance Guidelines
• Motorola, Inc. Director Independence Guidelines
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