Motorola 8167 User Manual - Page 35

(In millions, except as noted) Motorola, Inc. and Consolidated Subsidiaries In December 1990, the FASB issued SFAS 106, Accounting 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 Shares subject to option (In thousands of shares) Options outstanding at lanuary 1 Additional options granted Options exercised Options terminated, cancelled or expired 1990 6,502 1,595 (1,555) (47) 1989 6,002 1,380 (797) (83) not yet been fully determined and is not reasonably Options outstanding at December 31 6,495 6,502 estimable at this time. Shares reserved for future options grants 278 1,826 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 Total shares reserved Total options exercisable 6,773 8,328 4,877 5,099 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 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 1989 and 1988, respectively. from $17.10 to $87.25. 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. 7 Other Financial Data Income Statement Information Research and development Maintenance and repairs Foreign currency gains (losses) Interest expense, net: Interest expense Amount capitalized Interest expense, net Balance Sheet Information 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 1990 81,008 207 1989 $810 178 1988 $665 196 Financial data of consolidated financial subsidiaries 1990 1989 Total revenue 8 15 $ 31 1988 $ 26 Net earnings 5 7 7 (27) (6) 1 Total assets Total liabilities 120 166 296 (84) (134) (249) 180 168 135 (35) (37) (7) (3) $ 133 $130 $ 98 1990 1989 8 405 $ 350 840 1,245 823 1,173 255 264 96 97 48 67 Stockholders' investments and advances 8 36 $ 3 2 $ 47 The Company's finan 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. 51 25 689 $1,164 48 25 577 $1,078 33