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(In millions, except as noted)
Motorola, Inc. and Consolidated Subsidiaries
In December 1990, the FASB issued SFAS 106, Account-
ing for Postretirement Benefits Other than Pensions,
which requires employers to recognize expense on the
accrual basis during the periods that employees render
services. The Company has not yet adopted SFAS 106.
The FASB has deferred the required implementation until
January 1,1993. The cumulative impact of adoption has
not yet been fully determined and is not reasonably
estimable at this time.
Management Incentive: The Company may provide up
to 7% of its annual consolidated pretax earnings, as
defined in the Motorola Executive Incentive Plan, for the
payment of cash incentive awards to key employees.
During 1990, $23 million was provided for incentive
awards, as compared to $24 million and $25 million in
1989 and 1988, respectively.
Stock Options: Under the Company's employee stock
option plans, shares of common stock have been made
available for grant to key employees. The exercise price
of each option granted is 100% of market value on the
date of the grant.
Shares subject to option
(In thousands of shares)
Options outstanding at lanuary 1
Additional options granted
Options exercised
Options terminated, cancelled or expired
Options outstanding at December 31
Shares reserved for future options grants
Total shares reserved
Total options exercisable
1990
6,502
1,595
(1,555)
(47)
6,495
278
6,773
4,877
1989
6,002
1,380
(797)
(83)
6,502
1,826
8,328
5,099
Options exercised during 1990 were at per share prices
ranging from $17.10 to $57.44. Options outstanding at
December 31,1990 were at per share prices ranging
from $17.10 to $87.25.
7
Other
Financial
Data
Income Statement Information
1990
1989
1988
Financial data of consolidated financial subsidiaries
1990
1989
1988
Research and development
Maintenance and repairs
Foreign currency gains (losses)
Interest expense, net:
Interest expense
Amount capitalized
Interest expense, net
81,008
207
(27)
180
(7)
$810
178
(6)
168
(35)
(3)
$665
196
1
135
(37)
Total revenue
Net earnings
Total assets
Total liabilities
Stockholders' investments
and advances
The Company's finan
8 15
5
120
(84)
$ 31
7
166
(134)
$ 26
7
296
(249)
8 36
$ 3 2
$ 47
$ 133
$130
$ 98
Balance Sheet Information
1990
Inventories:
Finished goods
Work in process and production
materials
Inventories
Accrued liabilities:
Compensation
Taxes other than income
Income taxes payable
Contribution to employees'
profit sharing funds
Dividends payable
Other
Accrued liabilities
840
1989
8 405
$ 350
823
1,245
1,173
255
96
48
51
25
689
$1,164
264
97
67
48
25
577
$1,078
obligations under long-term contracts from the Company
at net carrying value. Its insurance subsidiary insures
some of the Company's property risks.
Finance subsidiary interest income of $15 million in
1990, $31 million in 1989 and $26 million in 1988 is
included in Net sales. Interest expense of $8 million in
1990, $20 million in 1989 and $16 million in 1988 is
included in Manufacturing and other costs of sales. In
addition, finance receivables of $93 million in 1990 and
$122 million in 1989 are included in Other assets.
The Company's cash payments for interest expense
(net of amounts capitalized) were $113 million in 1990,
$175 million in 1989 and $157 million in 1988.
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