Page 1: ...Annual Report 1990 M MOTOROLA INC ...
Page 2: ...over One of the newest landmarks in Paris is architect I M Pei s pyramid entrance to the Louvre Guards from Erom Se curite S A use Motorola two way communications equipment at the museum to protect some of the finest art treasures in the world In this year s report you will see how Motorola products and sys tems serve our customers throughout the world Contents Financial Highlights 2 To Our Stockh...
Page 3: ...when they want it with Six Sigma quality and best in class cycle time as we strive to achieve our fundamental corporate objective of Total Customer Satisfaction and to achieve our stated goals of increased global market share best in class people products marketing manufacturing technology and service and superior financial results ...
Page 4: ...vested capital stockholders equity plus long and short term debt less short term investments 2 of total debt less short term investments to total debt less short term investments plus equity2 Book value per common share in dollars Year end employment in thousands Includes expenditures related to capitalized leases Includes short term investments categorized as cash and cash equivalents 1990 9 4 19...
Page 5: ...itions in some of our markets Sales increased 13 percent to 10 88 billion from 9 62 billion in 1989 Earnings were 499 million or 3 80 per share compared with 498 million or 3 83 per share a year earlier Net margin on sales was 4 6 percent compared with 5 2 percent a year ago Return on average invested capital was 9 4 compared with 10 3 in 1989 We acknowledge the lower than desirable financial retu...
Page 6: ...ler to Canon for its EOS camera family In Asia we opened a major new semiconductor facility in Hong Kong provided the radio system for the Asian Games in China and shipped more than 500 000 pagers to Taiwan We began supplying CT 2 digital cordless phones in Singapore and won awards for cellular phone systems in Indonesia and China In India our Motorola Blue Starjoint venture produced its first dat...
Page 7: ... W Galvin in addition to his full time employment as chairman of the Executive Committee of the Board of Directors has been elected chairman of the Board of Directors of Sematech a nonprofit industry government research consortium in Austin Texas He is also serving as chairman of the Board of Overseers of the Malcolm Baldrige National Quality Award Arthur P Sundry president and general manager of ...
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Page 9: ... users mountainous terrain high rise steel and concrete buildings and a harbor that bisects two major centers of the population Hutchison Telephone Co which has the most cellular subscribers in Hong Kong operates two systems supplied by Motorola Phones from Motorola are available in every major cellular market from Argentina to Zaire ...
Page 10: ...ch by using a new data microphone equipped with a liquid crystal display to keep information J J r close at hand The compact MG 100 mobile radio features a hear clear function to reduce noise It operates at 1 5 gigahertz on Motorola s new Japan Specialised Mobile Radio JSMR II system Shared trunking systems such as these are among the most advanced in the world ...
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Page 13: ... and advanced plastics At the heart of each ABB operation is a highly efficient communications network ABB Data chose a networking system based on a Motorola product the Codex 6390 Fast Packet T l E l Multiplexer to reduce costs and meet the demand for increased bandwidth Codex is helping to meet the networking needs of global customers like ABB which has 217 000 employees in 140 countries 11 ...
Page 14: ... computer in a credit card allows secure authentication of the card and the caller This enables the caller to enter a personal access code and have the call billed to a home or office number At the heart of the telephone card is a Motorola MC6805SC01 secure microcontroller Motorola is the world s largest producer of 8 bit microcontrollers which are used in products ranging from cameras to automobi...
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Page 17: ... software package developed by the National Science Center Foundation The NSCF chose the powerful Motorola system because it offers color graphics and speed at prices that schools can afford The interactive self paced software package is designed to improve math proficiency in U S schools The MultiPersonal Computer is based on Motorola s 88000 RISC microprocessor family 15 ...
Page 18: ...cellu lar radiotelephone systems mobile and portable radiotelephones microcom puter boards and information processing and handling equipment such as multi user microcomputer systems Information Systems Group The Information Systems Group combines the capabilities of Codex Corporation and UDS to provide all the elements for distributed data and voice networks from basic modems to network management...
Page 19: ... Mobile Exchange EMX Series Factory Automation Computer Control Systems HD LD and HD II Series Cellular Base Stations Microcomputer VME Board Level Products Multi User Super Microcomputer Systems and Servers Software for Workgroup and Network Computing Communications Real Time Distributed Computing Systems Wireless In Building Network Products Digital Service Channel Service Units Distributed Comm...
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Page 21: ...de voice and data communication and vehicle location network in the U S More than 500 sites were installed by the end of 1990 The system enables dispatchers to locate and communicate directly with vehicles by voice or with data messages anywhere in the network We introduced the 7100 series of compact mobile radio data terminals which will be used on the network In Japan we installed our first 1 5 ...
Page 22: ...onsumer oriented multimedia system We provided critical M68000 family microprocessor support to Apple Computer for its new Macintosh family We are developing a custom 16 bit microcontroller in partnership with Toshiba Nippondenso and Toyota to use in future Toyota vehicles Our partnership with Northern Telecom produced successful demonstrations of industry standard components for the Integrated Se...
Page 23: ...tors Vendor of the Year from Northern Telecom Europe and the Fujitsu Award Reflecting overall performance we won Dataquest s Semiconductor Supplier of the Year award for the second consecutive year Greater yields and efficiency resulted in record unit production of 7 5 billion devices including 5 5 billion discrete semiconductors the equivalent of one for every person on Earth General Sales in the...
Page 24: ...ent manufacturing OEM agreement Major contracts for commercial systems were received from the State of Tennessee and Service Merchandise Co Inc it Systems Group Sales increased 8 to 599 million and orders rose 14 The group recorded an operating loss of 1 million compared with operating profits of 18 million in 1989 because of the loss on the sale of the Codex Corp headquarters building in Canton M...
Page 25: ...ndard missile was also received A secure telecommunications business unit is being established within GEG It produces equipment that protects information transmitted over voice and data networks for both commercial and government markets including the SECTEL Secure Telephone Unit Automotive and Sales were flat and orders rose 2 despite a decline in Industrial the North American automotive market a...
Page 26: ...all segments was 951 million in 1990 up from 895 million in 1989 In 1988 operating profit was 804 million The General Systems Products segment maintained its position as Motorola s most prof itable segment in 1990 However the Semiconductor Products segment showed the most improvement in 1990 Net earnings of 499 million in 1990 were flat as compared to 1989 with 1990 per share earnings of 3 80 down...
Page 27: ...trong balance sheet with a ratio within the Company s financial policy guidelines As of December 31 1990 the Company has domestic and international credit facilities totalling 1 78 billion of which 788 million remain unused Cash generated from operations and available credit facilities provide support for near term funding requirements Fixed asset expenditures required to support current and long ...
Page 28: ...ith the Company s internal auditors both privately and with management present to review accounting auditing internal controls and financial reporting matters George Fisher Chairman of the Board and Chief Executive Officer Donald R Jones Executive Vice President and Chief Financial Officer Independent Auditors Report The Board of Directors and Stockholders of Motorola Inc We have audited the accom...
Page 29: ...ncome taxes Income taxes provided on earnings Net earnings Net earnings per share 10 219 666 167 499 3 80 8 974 646 148 498 3 83 7 638 612 167 445 3 43 129 6 Statements of Consolidated Stockholders Equity Years ended December 31 Common Stock and Additional Paid in Capital Retained Earnings In millions exceptper share amounts 1990 1989 1988 1990 1989 1988 Balances at January 1 Net earnings Stock op...
Page 30: ...434 7 686 Liabilities and Stockholders Equity Current liabilities Notes payable and current portion of long term debt Accounts payable Accrued liabilities Total current liabilities Long term debt Deferred income taxes Other liabilities Stockholders equity Common stock 3 par value Authorized shares 1990 300 0 1989 300 0 Outstanding shares 1990 131 7 1989 130 4 Preferred stock 100 par value issuable...
Page 31: ... 186 28 151 1 308 117 1 256 39 110 283 29 71 306 95 76 1 2 1 1 53 1 094 39 57 247 223 20 321 49 25 725 123 873 58 42 Investing Businesses acquired and advances to affiliated companies Payments for property plant and equipment Other changes to property plant and equipment net Increase in short term investments Net cash used for investing activities 1 444 1 243 1 0 ing Increase decrease in notes pay...
Page 32: ...ts of Income taxes provided on earnings 1990 1989 419 193 612 1988 Current United States Other nations State income taxes U S Deferred Income taxes 147 51 31 117 154 29 38 33 34 229 62 179 31 226 59 167 148 167 Income tax payments were 236 million in 1990 159 million in 1989 and 212 million in 1988 Income taxes are not provided on cumulative undis tributed earnings of certain non U S subsidiaries ...
Page 33: ...e changed from 6 15 to 5 75 on January 1 1991 for 1991 The Company has domestic and international credit facilities for short term borrowings generally with banks It pays commitment fees of approximately 1 10 on its domestic credit facilities and generally no fees on its foreign credit facilities Short term credit facilities totalled 1 78 billion at December 31 1990 of which 788 million remain unu...
Page 34: ...ts Net amortization and deferral Net pension expense 8 63 34 11 8 39 57 26 103 51 31 50 20 45 4 21 The net U S expense for the elected officers pension plan was 14 million in 1990 and 1989 and 9 million in 1988 US Funded Plans at December 31 1990 1989 Elected Elected Regular Officere Regular Officers Actuarial present value of Vested benefit obligation Accumulated benefit obligation Projected bene...
Page 35: ...re 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 Amo...
Page 36: ...t the ultimate disposition of these matters will not have a material adverse effect on the business or financial position of the Company 9 Infermcrtien by Industry Segment and Region Industry segment information as of and for die years ended December 31 Communications Products Semiconductor Products General Systems Products Information Systems Products Government Electronic Products Other Products...
Page 37: ...arily administrative head quarters cash and marketable securities Sales to United States Federal government agencies aggregated 1 08 billion for 1990 1 07 billion for 1989 and 1 05 billion for 1988 No other single customer or group under common control represented 10 or more of the Company s sales The equity in net assets of non U S subsidiaries amounted to 1 84 billion at December 31 1990 and 1 5...
Page 38: ...ockholders equity 8 742 1 404 792 1 787 4 257 1 46 9 4 12 3 105 0 131 3 7 686 1 261 755 1 542 3 803 1 48 10 3 13 9 104 0 130 0 6 710 758 343 1 381 3 375 1 29 11 0 13 9 102 0 129 6 5 517 932 344 917 3 008 1 52 8 8 10 7 97 7 128 9 4 826 803 334 786 2 754 1 54 5 9 7 4 94 4 126 5 Other Data Current ratio Return on average invested capital Return on average stockholders equity Year end employment in th...
Page 39: ...a Pacific Semiconductor Division Japanese Semiconductor Division General Systems Sector Cellular Subscriber Group Pan American Subscriber Group U S Markets Division International Cellular Subscriber Group European Cellular Subscriber Division Computer Group Commercial Systems Division International Computer Division Technical Systems Division Field Service Division Radio Telephone Systems Group Ce...
Page 40: ...iam V Braun Senior Vice President and Motorola Director of Research and Development Richard Buetow Senior Vice President and Motorola Director of Quality C Travis Marshall Senior Vice President and Motorola Director of Government Relations Vincent J Rauner Senior Vice President for Patents Trademarks and Licensing James D Burge Corporate Vice President and Director of Employment Regulatory Affairs...
Page 41: ...ce R Paggeot 50 22 Senior Vice President and General Manager Cellular Subscriber Group John P Salcius 47 24 Senior Vice President and General Manager International Subscriber Group Bernard R Smedley 54 14 Senior Vice President and General Manager Radio Telephone Systems Group Robert N Weisshappel 46 20 Senior Vice President and General Manager Pan American Cellular Subscriber Group Thomas A Beaver...
Page 42: ...nang Malaysia Fixed Products Division Circuit Technology Department Schaumburg 111 Motorola Electronics Pte Ltd Singapore Motorola Israel Ltd Arad Factory Government Electronics Group Voyager Program Chandler Ariz Apache Program Scottsdale Ariz FMU 139 Fuze Team Scottsdale Ariz General Systems Sector Cellular Personnel Arlington Heights 111 North American Subscriber Distributions Oprs Arlington He...
Page 43: ...anges Annual Meeting The annual meeting will be held el Stockholders on May 13 1991 A notice of the meeting together with a form of proxy and a proxy statement Form 1O K After the close of each fiscal year Motorola submits a report on Form 10 K to the Securities and Exchange Commission containing certain additional information concerning its business KPMG Peat Marwick 303 E Wacker Drive Chicago II...
Page 44: ...Inc Corporate Offices 1303 E Algonquin Rd Schaumburg IL 60196 Phone 708 576 5000 Motorola is an equal employment Opportunity Affirmative Action Employer Motorola and M are registered trademarks of Motorola Inc J ...
