EX-99.1 2 c23191exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1
Motorola Announces Fourth-Quarter and Full-Year Sales and Earnings
  •   Fourth-quarter sales of $9.65 billion
 
  •   Fourth-quarter GAAP earnings from continuing operations of $0.05 per share, including net charges of $0.09 per share from items highlighted below
 
  •   Mobile Devices remains challenged; sales declined 38 percent versus prior-year quarter
 
  •   Home & Networks Mobility and Enterprise Mobility Solutions continue to deliver strong results
 
  •   Fourth-quarter positive operating cash flow of $470 million and cash conversion cycle improved by 10 days
SCHAUMBURG, Ill. — January 23, 2008 — Motorola, Inc. (NYSE: MOT) today reported sales of $9.65 billion in the fourth quarter of 2007. Net earnings in the fourth quarter of 2007 were $0.04 per share, which include $0.05 per share from continuing operations and a net loss of $0.01 per share from discontinued operations. Earnings from continuing operations include net charges of $0.09 per share related to a legal settlement, charges associated with previously announced workforce reductions and a write-down of assets, partially offset by tax benefits.
During the quarter, the company generated operating cash flow of $470 million. For the full year, the company generated operating cash flow of $785 million and ended the year with a net cash position of $4.3 billion.
For the full year 2007, sales were $36.6 billion. The net loss was $0.02 per share, which included a net loss of $0.05 per share from continuing operations and earnings of $0.03 per share from discontinued operations. The net loss from continuing operations included net charges of $0.29 per share from items highlighted in the company’s quarterly earnings releases.
“We are focused on aggressively rationalizing the company’s cost structure and working to get Mobile Devices back on track,” said Greg Brown, chief executive officer of Motorola. “The recovery in Mobile Devices will take longer than expected and there is a lot more work to be done. Our primary focus is on improving profitability and enhancing our product portfolio in this business. At the same time, we are very pleased with the continued strong performance of our Home and Networks Mobility and Enterprise Mobility Solutions businesses.”
“During the fourth quarter, we completed several cost actions to improve efficiencies in Mobile Devices and across our organization,” said Tom Meredith, acting chief financial officer of Motorola. “We remain focused on further improving our operating cash flow and cash conversion cycle, while continuing to drive cost savings opportunities.”

 

 

During the fourth quarter, the company repurchased 33.7 million shares for $557 million. Since the implementation of its first repurchase program in 2005, Motorola has repurchased a total of 385 million shares for $7.7 billion. The company has $3.8 billion remaining under its current share repurchase authorization.
Operating Results
Mobile Devices segment sales were $4.8 billion, down 38 percent compared with the year-ago quarter. The operating loss was $388 million, compared with operating earnings of $341 million in the year-ago quarter. For the full year 2007, sales were $19.0 billion, a 33 percent decrease compared to 2006, and the segment incurred an operating loss of $1.2 billion, compared to operating earnings of $2.7 billion in 2006. During the quarter, the company shipped 40.9 million handsets.
Mobile Devices highlights:
  •   Announced nine new phones during the quarter, including: the U9, featuring a rich music experience with external touch-sensitive music controls; seven new W-Series handsets; and the luxury edition RAZR2
 
  •   At the International Consumer Electronics Show (CES): introduced the MOTO Z10, the ROKR E8, which won four Best of CES awards, including CNET’s “People’s Voice” award, and new companion products; and announced the Soundbuzz acquisition
 
  •   Completed an agreement with Qualcomm to include chipsets for 3G devices
Home and Networks Mobility segment sales were $2.7 billion, up 11 percent compared with the year-ago quarter. Operating earnings decreased to $192 million, compared with operating earnings of $223 million in the year-ago quarter. For the full year 2007, sales were $10.0 billion, a 9 percent increase compared to 2006, and the segment generated operating earnings of $709 million, compared to $787 million in 2006.
Home and Networks Mobility highlights:
  •   Shipped 3.4 million digital entertainment devices during the quarter, with a record quarter for IP set tops
 
  •   Shipped its 50 millionth cable/voice modem during the quarter
 
  •   Introduced several new products at CES, including the DCX series of MPEG-4 HD set tops, capable of advanced video services, media storage, and usable as a home multimedia hub; the DH01 Mobile TV, a pocket sized and a DVBH device for multimedia entertainment on the go
 
  •   Continued momentum in WiMAX — ending the year with 47 active trials and 15 commercial contracts globally
 
  •   Completed the sale of the embedded computing business to Emerson for $350 million

 

 

Enterprise Mobility Solutions segment sales were $2.1 billion, up 35 percent compared with the year-ago quarter, driven by sales from the Symbol business acquired in early 2007. Operating earnings increased to $451 million, compared with operating earnings of $323 million in the year-ago quarter. For the full year 2007, sales were $7.7 billion, a 43 percent increase compared to 2006, and the segment generated operating earnings of $1.2 billion, compared to $958 million in 2006.
Enterprise Mobility Solutions highlights:
  •   Acquired majority ownership of Vertex Standard, enabling both companies to deliver an enhanced product portfolio to customers worldwide
 
  •   Awarded contracts from the city of Atlanta and the Colombian Ministry of Defense
 
  •   Announced the CA50 VOIP-enabled wireless bar code scanner
 
  •   Introduced integrated GPS functionality for the market-leading MC70 enterprise digital assistant
First-Quarter 2008 Outlook
The Company’s outlook for the first quarter is a loss from continuing operations of $0.05 to $0.07 per share. This outlook excludes any reorganization of business charges associated with the Company’s operating expense reduction initiatives, as well as any other items of the variety highlighted by the Company in its quarterly earnings releases.

 

 

Consolidated GAAP Results
A comparison of results from operations is as follows:
                                 
    Fourth Quarter     Full Year  
(In millions, except per share amounts)   2007     2006     2007     2006  
 
 
                                
Net sales
   $ 9,646     $ 11,792     $ 36,622     $ 42,847  
Gross margin
     2,540       3,069       9,952       12,727  
Operating earnings (loss)
     (19 )      753       (553 )     4,092  
Earnings (loss) from continuing operations
      111        529       (105 )     3,261  
Net earnings (loss)
      100        623       (49 )     3,661  
Diluted earnings (loss) per common share:
                                
Continuing operations
   $ 0.05     $ 0.21     $ (0.05 )   $ 1.30  
Discontinued operations
     (0.01 )     0.04       0.03       0.16  
 
                
 
   $ 0.04     $ 0.25     $ (0.02 )   $ 1.46  
 
                
 
                                
Weighted average diluted common shares outstanding
     2,308       2,464       2,313       2,504  
 
Conference Call and Webcast
Motorola will host its quarterly conference call beginning at 8:00 a.m. Eastern Time (USA) on Wednesday, January 23, 2008. The conference call will be web-cast live with audio and slides at www.motorola.com/investor.
Business Risks
This press release contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to: (1) Motorola’s financial outlook for the first quarter of 2008; and (2) the timeframe for a recovery in the Mobile Devices business. Motorola cautions the reader that the risk factors below, as well as those on pages 16 through 24 in Item 1A of Motorola’s 2006 Annual Report on Form 10-K and in its other SEC filings, could cause Motorola’s actual results to differ materially from those estimated or predicted in the forward-looking statements. Factors that may impact forward-looking statements include, but are not limited to: (1) the company’s ability to improve financial performance and increase market share in its Mobile Devices business; (2) the level of demand for the company’s products; (3) the company’s ability to introduce new products and technologies in a timely manner; (4) the company’s ability to continue generating meaningful savings from supply-chain improvements, manufacturing consolidation and other cost-reduction initiatives; (5) unexpected negative consequences from the company’s ongoing restructuring and cost-reduction activities; (6) the uncertainty of current economic and political conditions, as well as the economic outlook for the telecommunications and broadband industries; (7) the impact of tax relief, interest rate reduction and liquidity infusion efforts to stimulate the economy; (8) the company’s ability to purchase sufficient materials, parts and components to meet customer demand; (9) risks related to dependence on certain key suppliers; (10) the impact on the company’s performance and financial results from strategic acquisitions or divestitures, including those that may occur in the future; (11) risks related to the company’s high volume of manufacturing and sales in Asia; (12) the creditworthiness of the company’s customers and distributors, particularly purchasers of large infrastructure systems; (13) variability in income received from licensing the company’s intellectual property to others, as well as expenses incurred when the company licenses the intellectual property of others ; (14) unexpected liabilities or expenses, including unfavorable outcomes to any pending or future litigation or regulatory or

 

 

similar proceedings, including without limitation any relating to the Iridium project; (15) the impact on the company from recent volatility in the commercial paper, debt and equity markets; (16) the impact of foreign currency fluctuations; (17) the impact on the company from continuing hostilities in Iraq and conflict in other countries; (18) the impact on the company from ongoing consolidation in the telecommunications and broadband industries; (19) the impact of changes in governmental policies, laws or regulations; (20) the outcome of currently ongoing and future tax matters; and (21) unforeseen negative consequences from the company’s outsourcing of various activities, including certain manufacturing, information technology and administrative functions. Motorola undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.
About Motorola
Motorola (MOT: NYSE) is known around the world for innovation in communications. The company develops technologies, products and services that make mobile experiences possible. Our portfolio includes communications infrastructure, enterprise mobility solutions, digital set-tops, cable modems, mobile devices and Bluetooth accessories. Motorola is committed to delivering next generation communication solutions to people, businesses and governments. A Fortune 100 company with global presence and impact, Motorola had sales of US $36.6 billion in 2007. For more information about our company, our people and our innovations, please visit http://www.motorola.com.
# # #
Media Contact:
Jennifer Erickson
Motorola, Inc.
+1 847-435-5320
jennifer.erickson@motorola.com
Investor Contact:
Dean Lindroth
Motorola, Inc.
+1 847-576-6899
dean.lindroth@motorola.com

 

 

Motorola, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
                         
    Three Months Ended  
    December 31, 2007     September 29, 2007     December 31, 2006  
Net sales
   $ 9,646     $ 8,811     $ 11,792  
Costs of sales
     7,106       6,306       8,723  
 
                  
Gross margin
     2,540       2,505       3,069  
 
                  
 
                        
Selling, general and administrative expenses
     1,273       1,210       1,158  
Research and development expenditures
     1,097       1,100       1,061  
Other charges (income)
     101       115       65  
Intangibles amortization and IPR&D
     88       90       32  
 
                  
Operating earnings (loss)
     (19 )     (10 )     753  
 
                  
 
                        
Other income (expense):
                        
Interest income, net
     11       7       99  
Gains (loss) on sales of investments and businesses, net
     41       5       (125 )
Other
     —       6       (43 )
 
                  
Total other income (expense)
     52       18       (69 )
 
                  
Earnings from continuing operations before income taxes
     33       8       684  
Income tax expense (benefit)
     (78 )     (32 )     155  
 
                  
Earnings from continuing operations
     111       40       529  
 
Earnings (loss) from discontinued operations, net of tax
     (11 )     20       94  
 
                  
Net earnings
   $ 100     $ 60     $ 623  
 
                  
 
                        
Earnings (loss) per common share
                        
Basic:
                        
Continuing operations
   $ 0.05     $ 0.02     $ 0.22  
Discontinued operations
     (0.01 )     0.01       0.04  
 
                  
 
   $ 0.04     $ 0.03     $ 0.26  
 
                  
 
                        
Diluted:
                        
Continuing operations
   $ 0.05     $ 0.02     $ 0.21  
Discontinued operations
     (0.01 )     0.01       0.04  
 
                  
 
   $ 0.04     $ 0.03     $ 0.25  
 
                  
Weighted average common shares outstanding
                        
Basic
     2,280.7       2,290.2       2,413.0  
Diluted
     2,307.9       2,318.4       2,463.6  
 
                        
Dividends paid per share
   $ 0.05     $ 0.05     $ 0.05  
 
                  
 
                        
  Percentage of Net Sales* 
Net sales
     100 %     100 %     100 %
Costs of sales
     73.7 %     71.6 %     74.0 %
 
                  
Gross margin
     26.3 %     28.4 %     26.0 %
 
                  
 
                        
Selling, general and administrative expenses
     13.2 %     13.7 %     9.8 %
Research and development expenditures
     11.4 %     12.5 %     9.0 %
Other charges (income)
     1.0 %     1.3 %     0.6 %
Intangibles amortization and IPR&D
     0.9 %     1.0 %     0.3 %
 
                  
Operating earnings (loss)
     -0.2 %     -0.1 %     6.4 %
 
                  
 
                        
Other income (expense):
                        
Interest income, net
     0.1 %     0.1 %     0.8 %
Gains (loss) on sales of investments and businesses, net
     0.4 %     0.1 %     -1.1 %
Other
     0.0 %     0.1 %     -0.4 %
 
                  
Total other income (expense)
     0.5 %     0.2 %     -0.6 %
 
                  
Earnings from continuing operations before income taxes
     0.3 %     0.1 %     5.8 %
Income tax expense (benefit)
     -0.8 %     -0.4 %     1.3 %
 
                  
Earnings from continuing operations
     1.2 %     0.5 %     4.5 %
 
                        
Earnings (loss) from discontinued operations, net of tax
     -0.1 %     0.2 %     0.8 %
 
                  
Net earnings
     1.0 %     0.7 %     5.3 %
 
                  
 
*   Percents may not add up due to rounding

 

Motorola, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
                 
    Year Ended  
    December 31, 2007     December 31, 2006  
Net sales
   $ 36,622     $ 42,847  
Costs of sales
     26,670       30,120  
 
            
Gross margin
     9,952       12,727  
 
            
Selling, general and administrative expenses
     5,092       4,504  
Research and development expenditures
     4,429       4,106  
Other charges (income)
     519       (108 )
Intangibles amortization and IPR&D
     465       133  
 
            
Operating earnings (loss)
     (553 )     4,092  
 
            
 
                
Other income (expense):
                
Interest income, net
     91       326  
Gains on sales of investments and businesses, net
     50       41  
Other
     22       151  
 
            
Total other income (expense)
     163       518  
 
            
Earnings (loss) from continuing operations before income taxes
     (390 )     4,610  
Income tax expense (benefit)
     (285 )     1,349  
 
            
Earnings (loss) from continuing operations
     (105 )     3,261  
 
                
Earnings from discontinued operations, net of tax
     56       400  
 
            
Net earnings (loss)
   $ (49 )   $ 3,661  
 
            
 
                
Earnings (loss) per common share
                
Basic:
                
Continuing operations
   $ (0.05 )   $ 1.33  
Discontinued operations
     0.03       0.17  
 
            
 
   $ (0.02 )   $ 1.50  
 
            
 
                
Diluted:
                
Continuing operations
   $ (0.05 )   $ 1.30  
Discontinued operations
     0.03       0.16  
 
            
 
   $ (0.02 )   $ 1.46  
 
            
 
                
Weighted average common shares outstanding
                
Basic
     2,312.7       2,466.3  
Diluted
     2,312.7       2,504.2  
 
                
Dividends paid per share
   $ 0.20     $ 0.18  
 
            
 
                
  Percentage of Net Sales* 
Net sales
     100 %     100 %
Costs of sales
     72.8 %     70.3 %
 
            
Gross margin
     27.2 %     29.7 %
 
            
 
                
Selling, general and administrative expenses
     13.9 %     10.5 %
Research and development expenditures
     12.1 %     9.6 %
Other charges (income)
     1.4 %     -0.3 %
Intangibles amortization and IPR&D
     1.3 %     0.3 %
 
            
Operating earnings (loss)
     -1.5 %     9.6 %
 
            
 
                
Other income (expense):
                
Interest income, net
     0.2 %     0.8 %
Gains on sales of investments and businesses, net
     0.1 %     0.1 %
Other
     0.1 %     0.4 %
 
            
Total other income (expense)
     0.4 %     1.2 %
 
            
Earnings (loss) from continuing operations before income taxes
     -1.1 %     10.8 %
Income tax expense (benefit)
     -0.8 %     3.1 %
 
            
Earnings (loss) from continuing operations
     -0.3 %     7.6 %
 
                
Earnings from discontinued operations, net of tax
     0.2 %     0.9 %
 
                
Net earnings (loss)
     -0.1 %     8.5 %
 
            
 
*   Percents may not add up due to rounding

 

Motorola, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)
                 
    December 31,     September 29,  
    2007     2007  
Assets
                
Cash and cash equivalents
   $ 2,752     $ 2,315  
Sigma Funds
     5,242       5,021  
Short-term investments
     612       1,063  
Accounts receivable, net
     5,324       5,165  
Inventories, net
     2,836       2,995  
Deferred income taxes
     1,891       1,873  
Other current assets
     3,565       3,233  
 
            
Total current assets
     22,222       21,665  
 
            
 
                
Property, plant and equipment, net
     2,480       2,536  
Investments
     837       951  
Deferred income taxes
     2,454       2,472  
Goodwill
     4,492       4,676  
Other assets
     2,327       2,469  
 
            
Total assets
   $ 34,812     $ 34,769  
 
            
 
                
Liabilities and Stockholders’ Equity
                
Notes payable and current portion of long-term debt
   $ 332     $ 1,523  
Accounts payable
     4,167       3,671  
Accrued liabilities
     8,001       7,707  
 
            
Total current liabilities
     12,500       12,901  
 
            
 
                
Long-term debt
     3,991       2,628  
Other liabilities
     2,874       4,196  
 
                
Stockholders’ equity
     15,447       15,044  
 
            
 
                
Total liabilities and stockholders’ equity
   $ 34,812     $ 34,769  
 
            
 
                
Financial Ratios*:
                
Days Sales Outstanding (including net Long-term receivables)
     50       53  
Cash Conversion Cycle
     33       43  
ROIC
     4 %     7 %
Net Cash
   $ 4,283     $ 4,248  
 
*   Defined in the Financial Ratios Definitions table

 

Motorola, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In millions, except per share amounts)
                 
    Three Months Ended  
    December 31, 2007     December 31, 2006  
Operating
                
Net earnings
   $ 100     $ 623  
Less: Earnings (loss) from discontinued operations
     (11 )     94  
 
            
Earnings from continuing operations
     111       529  
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities:
                
Depreciation and amortization
     221       155  
Deferred income taxes
     (285 )     (26 )
Other, net
     86       300  
Changes in operating assets and liabilities, net
     337       (248 )
 
            
Net cash provided by operating activities from continuing operations
     470       710  
 
            
Investing
                
Acquisitions and investments, net
     (85 )     (46 )
Proceeds from sales of investments and businesses
     336       828  
Capital expenditures
     (134 )     (259 )
Purchases of Sigma Funds investments, net
     (265 )     (588 )
Other, net
     494       (116 )
 
            
Net cash provided by (used for) investing activities from continuing operations
     346       (181 )
 
            
Financing
                
Issuance of common stock
     151       203  
Purchase of common stock
     (557 )     (700 )
Other, net
     14       (104 )
 
            
Net cash used for financing activities from continuing operations
     (392 )     (601 )
 
            
Effect of exchange rate changes on cash and cash equivalents from continuing operations
     13       138  
Net cash provided by (used for) discontinued operations
     —       —  
 
            
Net increase in cash and cash equivalents
     437       66  
Cash and cash equivalents, beginning of period
     2,315       2,750  
 
            
Cash and cash equivalents, end of period
   $ 2,752     $ 2,816  
 
            
                 
    Year Ended  
    December 31, 2007     December 31, 2006  
Operating
                
Net earnings (loss)
   $ (49 )   $ 3,661  
Less: Earnings from discontinued operations
     56       400  
 
            
Earnings (loss) from continuing operations
     (105 )     3,261  
Adjustments to reconcile earnings (loss) from continuing operations to net cash provided by operating activities:
                
Depreciation and amortization
     903       558  
Deferred income taxes
     (837 )     838  
Other, net
     473       284  
Changes in operating assets and liabilities, net
     351       (1,442 )
 
            
Net cash provided by operating activities from continuing operations
     785       3,499  
 
            
Investing
                
Acquisitions and investments, net
     (4,568 )     (1,068 )
Proceeds from sales of investments and businesses
     411       2,001  
Capital expenditures
     (527 )     (649 )
Proceeds from sales (purchases) of Sigma Funds investments, net
     6,889       (1,337 )
Other, net
     174       (391 )
 
            
Net cash provided by (used for) investing activities from continuing operations
     2,379       (1,444 )
 
            
Financing
                
Issuance of common stock
     440       918  
Purchase of common stock
     (3,035 )     (3,826 )
Other, net
     (706 )     (253 )
 
            
Net cash used for financing activities from continuing operations
     (3,301 )     (3,161 )
 
            
Effect of exchange rate changes on cash and cash equivalents from continuing operations
     73       148  
Net cash provided by (used for) discontinued operations
     —       —  
 
            
Net decrease in cash and cash equivalents
     (64 )     (958 )
Cash and cash equivalents, beginning of period
     2,816       3,774  
 
            
Cash and cash equivalents, end of period
   $ 2,752     $ 2,816  
 
            

 

Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
Summarized below are the Company’s net sales by reportable segment for the quarters and years ended December 31, 2007 and December 31, 2006.
                         
    Net Sales
    Quarter Ended     Quarter Ended     % Change from  
    December 31, 2007     December 31, 2006     2006
 
                        
Mobile Devices
   $ 4,811     $ 7,806       -38 %
Home and Networks Mobility
     2,724       2,444       11 %
Enterprise Mobility Solutions
     2,138       1,579       35 %
 
                    
Segment Totals
     9,673       11,829       -18 %
Other and Eliminations
     (27 )     (37 )     -27 %
 
                    
Company Totals
   $ 9,646     $ 11,792       -18 %
 
                    
                         
    Net Sales
    Year Ended     Year Ended     % Change from  
    December 31, 2007     December 31, 2006     2006
 
                        
Mobile Devices
   $ 18,988     $ 28,383       -33 %
Home and Networks Mobility
     10,014       9,164       9 %
Enterprise Mobility Solutions
     7,729       5,400       43 %
 
                    
Segment Totals
     36,731       42,947       -14 %
Other and Eliminations
     (109 )     (100 )     9 %
 
                    
Company Totals
   $ 36,622     $ 42,847       -15 %
 
                    

 

 

Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
Summarized below are the Company’s operating earnings (loss) by reportable segment for the quarters and years ended December 31, 2007 and December 31, 2006.
                 
    Operating Earnings (Loss)  
    Quarter Ended     Quarter Ended  
    December 31, 2007     December 31, 2006  
 
                
Mobile Devices
   $ (388 )   $ 341  
Home and Networks Mobility
     192       223  
Enterprise Mobility Solutions
     451       323  
 
            
Segment Totals
     255       887  
Other and Eliminations
     (274 )     (134 )
 
            
Company Totals
   $ (19 )   $ 753  
 
            
                 
    Operating Earnings (Loss)  
    Year Ended     Year Ended  
    December 31, 2007     December 31, 2006  
 
                
Mobile Devices
   $ (1,201 )   $ 2,690  
Home and Networks Mobility
     709       787  
Enterprise Mobility Solutions
     1,213       958  
 
            
Segment Totals
     721       4,435  
Other and Eliminations
     (1,274 )     (343 )
 
            
Company Totals
   $ (553 )   $ 4,092  
 
            

 

 

Motorola, Inc. and Subsidiaries
Financial Ratios Definitions
Cash Conversion Cycle = DSO + DIO - DPO
  •   Days sales outstanding (DSO) = (Accounts receivable + Long-term receivables) / (Three months of net sales / 90)
 
  •   Days inventory outstanding (DIO) = Inventory / (Three months of cost of sales / 90)
 
  •   Days payable outstanding (DPO) = Accounts payable / (Three months of cost of sales / 90)
Return on Invested Capital (ROIC)
     
Rolling ROIC = 
  (12 mth Rolling Operating Earnings excluding Highlighted Items and including Foreign Currency Gain/(Loss)) Tax Affected
4 Quarter Average (Stockholders’ Equity + Total Debt - Excess Cash*)
 
*   Excess Cash = Rolling 4 Quarter Average of Total Cash & Short-term Investments - 5% of Rolling Net Sales
Net Cash = Cash and cash equivalents + Sigma Funds + Short-term investments - Note payable and current portion of long-term debt - Long-term Debt