MOTOROLA and the stylized M Logo are registered in the U.S. Patent & Trademark Office. All other product or service names are the property of their respective owners.
Motorola, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
Quarter Ended Quarter Ended
September 30, 2006 October 1, 2005
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Net sales $10,603 $9,048
Costs of sales 7,229 6,119
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Gross margin 3,374 2,929
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Selling, general and administrative
expenses 1,174 919
Research and development expenditures 1,027 882
Other charges (income) 205 48
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Operating earnings 968 1,080
------------------ ---------------
Other income (expense):
Interest income, net 90 20
Gains on sales of investments and
businesses, net 10 1,266
Other 87 (106)
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Total other income 187 1,180
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Earnings from continuing operations
before income taxes 1,155 2,260
Income tax expense 428 522
------------------ ---------------
Earnings from continuing operations 727 1,738
Earnings from discontinued operations,
net of tax 241 13
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Net earnings $968 $1,751
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Earnings per common share
-------------------------
Basic:
Continuing operations $0.30 $0.70
Discontinued operations 0.10 0.01
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$0.40 $0.71
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Diluted:
Continuing operations $0.29 $0.68
Discontinued operations 0.10 0.01
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$0.39 $0.69
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Weighted average common shares outstanding
------------------------------------------
Basic 2,418.1 2,480.6
Diluted 2,476.8 2,547.0
Dividends paid per share $0.05 $0.04
Nine Months Ended Nine Months Ended
September 30, 2006 October 1, 2005
------------------ ---------------
Net sales $31,087 $25,223
Costs of sales 21,428 16,956
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Gross margin 9,659 8,267
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Selling, general and administrative
expenses 3,470 2,757
Research and development expenditures 2,989 2,567
Other charges (income) (139) 49
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Operating earnings 3,339 2,894
------------------ ---------------
Other income (expense):
Interest income, net 227 16
Gains on sales of investments and
businesses, net 166 1,914
Other 194 (94)
------------------ ---------------
Total other income 587 1,836
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Earnings from continuing operations
before income taxes 3,926 4,730
Income tax expense 1,194 1,388
------------------ ---------------
Earnings from continuing operations 2,732 3,342
Earnings from discontinued operations,
net of tax 306 34
------------------ ---------------
Net earnings $3,038 $3,376
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Earnings per common share
-------------------------
Basic:
Continuing operations $1.11 $1.36
Discontinued operations 0.13 0.01
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$1.24 $1.37
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Diluted:
Continuing operations $1.09 $1.33
Discontinued operations 0.12 0.01
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$1.21 $1.34
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Weighted average common shares outstanding
------------------------------------------
Basic 2,456.7 2,463.4
Diluted 2,517.0 2,514.7
Dividends paid per share $0.13 $0.12
Motorola, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)
ASSETS September 30, December 31,
2006 2005
-------------- ------------
Cash & cash equivalents $3,015 $3,774
Sigma funds 11,616 10,867
Short-term investments 211 144
Accounts receivable, net 7,135 5,635
Inventories, net 2,716 2,422
Deferred income taxes 2,022 2,355
Other current assets 2,858 2,360
Current assets held for sale 26 312
-------------- ------------
Total current assets 29,599 27,869
-------------- ------------
Property, plant and equipment, net 2,157 2,020
Investments 1,545 1,644
Deferred income taxes 822 1,196
Other assets 3,272 2,597
Non-current assets held for sale 13 323
-------------- ------------
Total assets $37,408 $35,649
-------------- ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable and current portion of
long-term debt $508 $448
Accounts payable 4,802 4,295
Accrued liabilities 8,037 7,376
Current liabilities held for sale 244 320
-------------- ------------
Total current liabilities 13,591 12,439
-------------- ------------
Long-term debt 3,780 3,806
Other liabilities 2,899 2,727
Non-current liabilities held for sale - 4
Stockholders' equity 17,138 16,673
-------------- ------------
Total liabilities and stockholders'
equity $37,408 $35,649
-------------- ------------
Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
Summarized below are the Company's net sales by reportable segment for
the quarters and nine months ended September 30, 2006 and October 1, 2005.
Net Sales
-----------------------------------------------
Quarter Ended Quarter Ended % Change
September 30, 2006 October 1, 2005 from 2005
-----------------------------------------------
Mobile Devices $7,034 $5,604 26%
Networks and Enterprise 2,779 2,766 0%
Connected Home Solutions 812 743 9%
---------------------------------
Segment Totals 10,625 9,113 17%
Other and Eliminations (22) (65) 66%
---------------------------------
Company Totals $10,603 $9,048 17%
=================================
Net Sales
-----------------------------------------------
Nine Months Ended Nine Months Ended % Change
September 30, 2006 October 1, 2005 from 2005
-----------------------------------------------
Mobile Devices $20,577 $14,921 38%
Networks and Enterprise 8,202 8,328 -2%
Connected Home Solutions 2,347 2,168 8%
---------------------------------
Segment Totals 31,126 25,417 22%
Other and Eliminations (39) (194) 80%
---------------------------------
Company Totals $31,087 $25,223 23%
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Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
Summarized below are the Company's operating earnings (loss) by
reportable segment for the quarters and nine months ended September 30,
2006 and October 1, 2005.
Operating Earnings (Loss)
------------------------------------
Quarter Ended Quarter Ended
September 30, 2006 October 1, 2005
------------------ ---------------
Mobile Devices $819 $593
Networks and Enterprise 378 465
Connected Home Solutions 21 39
------------------ ---------------
Segment Totals 1,218 1,097
Other and Eliminations (250) (17)
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Company Totals $968 $1,080
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Operating Earnings (Loss)
-------------------------------------
Nine Months Ended Nine Months Ended
September 30, 2006 October 1, 2005
------------------ -----------------
Mobile Devices $2,317 $1,524
Networks and Enterprise 1,063 1,374
Connected Home Solutions 66 81
------------------ -----------------
Segment Totals 3,446 2,979
Other and Eliminations (107) (85)
------------------ -----------------
Company Totals $3,339 $2,894
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Web site: http://www.motorola.com/
