Motorola 2009 Annual Report Download - page 105
Download and view the complete annual report
Please find page 105 of the 2009 Motorola annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
 |
 |
97
The following table summarizes the losses recognized in the consolidated financial statements:
Foreign Exchange Financial Statement
Year Ended December 31, 2009 Contracts Location
Derivatives in cash flow hedging relationships:
Loss recognized in Accumulated other
comprehensive loss (effective portion) $ — Accumulated other comprehensive loss
Loss reclassified from Accumulated other
comprehensive loss into Net earnings (loss)
(effective portion) (18) Cost of sales/Sales
Gain (loss) recognized in Net earnings (loss) on
derivative (ineffective portion and amount
excluded from effectiveness testing) — Other income (expense)
Stockholders’ Equity
Derivative instruments activity, net of tax, included in Accumulated other comprehensive income (loss) within
the consolidated statements of stockholders’ equity for the years ended December 31, 2009, 2008 and 2007 is as
follows:
2009 2008 2007
Balance at January 1 $(7) $— $16
Increase (decrease) in fair value 21 (9) (6)
Reclassifications to earnings (12) 2 (10)
Balance at December 31 $2 $(7) $—
Fair Value of Financial Instruments
The Company’s financial instruments include cash equivalents, Sigma Fund investments, short-term
investments, accounts receivable, long-term receivables, accounts payable, accrued liabilities, derivative financial
instruments and other financing commitments. The Company’s Sigma Fund, available-for-sale investment
portfolios and derivative financial instruments 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, 2009 was $3.7 billion, compared to a face value of $3.9 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, 2009, the Company’s available-for-sale equity securities portfolio had an approximate fair
market value of $147 million, which represented a cost basis of $37 million and a net unrealized gains of
$110 million. These equity securities are held for purposes other than trading.
6. Income Taxes
Components of earnings (loss) from continuing operations before income taxes are as follows:
Years Ended December 31 2009 2008 2007
United States $(882) $(3,880) $(2,540)
Other nations 717 1,247 2,164
$(165) $(2,633) $ (376)