Motorola 2011 Annual Report Download - page 86

Download and view the complete annual report

Please find page 86 of the 2011 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.

Page out of 131

  • 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

80
The following table summarizes the effect of derivative instruments in our consolidated statements of
operations, including immaterial amounts related to discontinued operations, for the year ended December 31, 2011
and 2010:
December 31, Statement of
Operations Location
Loss on Derivative Instruments 2011 2010
Derivatives not designated as hedging instruments:
Interest rate contracts (11) (16) Other income (expense)
Foreign exchange contracts (17) (33) Other income (expense)
Total derivatives not designated as hedging instruments $(28) $(49)
The following table summarizes the gains and losses recognized in the consolidated financial statements,
including immaterial amounts related to discontinued operations, for the years ended December 31, 2011 and
2010:
December 31,
Foreign Exchange Contracts 2011 2010
Financial Statement
Location
Derivatives in cash flow hedging relationships:
Loss recognized in Accumulated other comprehensive loss
(effective portion) $(1) $(9) Accumulated other comprehensive loss
Gain (loss) reclassified from Accumulated other
comprehensive loss into Net earnings (effective portion) 2(6) Cost of sales/Net sales
Gain recognized in Net earnings on derivative
(ineffective portion and amount excluded from
effectiveness testing) 11 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, 2011, 2010 and 2009 is as
follows:
2011 2010 2009
Balance at January 1 $— $ 2 $ (7)
Increase (decrease) in fair value (5) 321
Reclassifications to earnings, net of tax 2(5) (12)
Balance at December 31 $(3) $— $ 2
6. Income Taxes
Components of earnings from continuing operations before income taxes are as follows:
Years Ended December 31 2011 2010 2009
United States $462 $368 $346
Other nations 276 296 287
$738 $664 $633