EX-99.1 3 a2107526zex-99_1.htm EX-99.1
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Exhibit 99.1


Motorola, Inc. and Subsidiaries
Consolidated Statements of Operations
(In millions, except per share amounts)

 
   For the Quarter Ended March 30, 2002
  
 
   GAAP Results
   Special Items Inc/(Exp)
   Excluding Special Items
   Exited Businesses Inc/(Exp)
   Ongoing Operations Excluding Special Items
  
Net sales   $ 6,181   $ —   $ 6,181   $ —   $ 6,181  
Costs of sales     4,328     (8 )   4,320     —     4,320  
   
 
 
 
 
 
Gross margin     1,853     (8 )   1,861     —     1,861  

Selling, general and administrative expenses
 
 
1,108
 
 
12
 
 
1,120
 
 
—
 
 
1,120
 
Research and development expenditures     906     —     906     —     906  
Reorganization of businesses     198     (198 )   —     —     —  
Other charges     3     (3 )   —     —     —  
   
 
 
 
 
 
Operating loss     (362 )   (197 )   (165 )   —     (165 )

Other income/(expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Interest expense, net     (108 )   —     (108 )   —     (108 )
  Gains on sales of investments and businesses, net     11     11     —     —     —  
  Other     (192 )   (188 )   (4 )   —     (4 )
   
 
 
 
 
 
Total other income/ (expense)     (289 )   (177 )   (112 )   —     (112 )
   
 
 
 
 
 
Loss before income taxes     (651 )   (374 )   (277 )   —     (277 )
Income tax provision     (202 )   109     (93 )   —     (93 )
   
 
 
 
 
 
Net loss   $ (449 ) $ (265 ) $ (184 ) $ —   $ (184 )
   
 
 
 
 
 
Net loss per common share                                
  Basic   $ (0.20 )                   $ (0.08 )
  Diluted   $ (0.20 )                   $ (0.08 )

Weighted average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic     2,253.5                       2,253.5  
  Diluted     2,253.5                       2,253.5  

Dividends paid per share
 
$
0.04
 
 
 
 
 
 
 
 
 
 
$
0.04
 
 
   For the Quarter Ended March 31, 2001
  
 
   GAAP Results
   Special Items Inc/(Exp)
   Excluding Special Items
   Exited Businesses Inc/(Exp)
   Ongoing Operations Excluding Special Items
  
Net sales   $ 7,799   $ —   $ 7,799   $ 197   $ 7,602  
Costs of sales     6,197     (524 )   5,673     (135 )   5,538  
   
 
 
 
 
 
Gross margin     1,602     (524 )   2,126     62     2,064  

Selling, general and administrative expenses
 
 
1,234
 
 
(18
)
 
1,216
 
 
(42
)
 
1,174
 
Research and development expenditures     1,161     —     1,161     (11 )   1,150  
Reorganization of businesses     241     (241 )   —     —     —  
Other charges     72     (72 )   —     —     —  
   
 
 
 
 
 
Operating earnings (loss)     (1,106 )   (855 )   (251 )   9     (260 )

Other income/(expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Interest expense, net     (61 )   —     (61 )   (2 )   (59 )
  Gains on sales of investments and businesses, net     614     614     —     —     —  
  Other     (38 )   (29 )   (9 )   —     (9 )
   
 
 
 
 
 
Total other income/ (expense)     515     585     (70 )   (2 )   (68 )
   
 
 
 
 
 
Earnings (loss) before income taxes     (591 )   (270 )   (321 )   7     (328 )
Income tax provision     (58 )   (49 )   (107 )   (2 )   (109 )
   
 
 
 
 
 
Net earnings (loss)   $ (533 ) $ (319 ) $ (214 ) $ 5   $ (219 )
   
 
 
 
 
 
Net loss per common share                                
  Basic   $ (0.24 )                   $ (0.10 )
  Diluted   $ (0.24 )                   $ (0.10 )

Weighted average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic     2,194.0                       2,194.0  
  Diluted     2,194.0                       2,194.0  

Dividends paid per share
 
$
0.04
 
 
 
 
 
 
 
 
 
 
$
0.04
 

2


Motorola, Inc. and Subsidiaries
Consolidated Statements of Operations
(In millions, except per share amounts)

 
   For the Quarter Ended June 29, 2002
  
 
   GAAP Results
   Special Items Inc/(Exp)
   Excluding Special Items
   Exited Businesses Inc/(Exp)
   Ongoing Operations Excluding Special Items
  
Net sales   $ 6,869   $ —   $ 6,869   $ —   $ 6,869  
Costs of sales     4,629     (40 )   4,589     —     4,589  
   
 
 
 
 
 
Gross margin     2,240     (40 )   2,280     —     2,280  

Selling, general and administrative expenses
 
 
1,177
 
 
—
 
 
1,177
 
 
—
 
 
1,177
 
Research and development expenditures     925     —     925     —     925  
Reorganization of businesses     1,468     (1,468 )   —     —     —  
Other charges     909     (909 )   —     —     —  
   
 
 
 
 
 
Operating earnings (loss)     (2,239 )   (2,417 )   178     —     178  

Other income/(expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Interest expense, net     (100 )   —     (100 )   —     (100 )
  Gains on sales of investments and businesses, net     24     24     —     —     —  
  Other     (975 )   (955 )   (20 )   —     (20 )
   
 
 
 
 
 
Total other income/ (expense)     (1,051 )   (931 )   (120 )   —     (120 )
   
 
 
 
 
 
Earnings (loss) before income taxes     (3,290 )   (3,348 )   58     —     58  
Income tax provision     (969 )   988     19     —     19  
   
 
 
 
 
 
Net earnings (loss)   $ (2,321 ) $ (2,360 ) $ 39   $ —   $ 39  
   
 
 
 
 
 

Net earnings (loss) per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic   $ (1.02 )                   $ 0.02  
  Diluted   $ (1.02 )                   $ 0.02  

Weighted average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic     2,277.2                       2,277.2  
  Diluted     2,277.2                       2,277.2  

Dividends paid per share
 
$
0.04
 
 
 
 
 
 
 
 
 
 
$
0.04
 

3

 
   For the Quarter Ended June 30, 2001
  
 
   GAAP Results
   Special Items Inc/(Exp)
   Excluding Special Items
   Exited Businesses Inc/(Exp)
   Ongoing Operations Excluding Special Items
  
Net sales   $ 7,697   $ —   $ 7,697   $ 194   $ 7,503  
Costs of sales     5,895     (307 )   5,588     (135 )   5,453  
   
 
 
 
 
 
Gross margin     1,802     (307 )   2,109     59     2,050  

Selling, general and administrative expenses
 
 
1,301
 
 
(9
)
 
1,292
 
 
(37
)
 
1,255
 
Research and development expenditures     1,080     —     1,080     (11 )   1,069  
Reorganization of businesses     619     (619 )   —     —     —  
Other charges     99     (99 )   —     —     —  
   
 
 
 
 
 
Operating earnings (loss)     (1,297 )   (1,034 )   (263 )   11     (274 )

Other income/(expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Interest expense, net     (104 )   —     (104 )   (2 )   (102 )
  Gains on sales of investments and businesses, net     742     742     —     —     —  
  Other     (189 )   (194 )   5     —     5  
   
 
 
 
 
 
Total other income/ (expense)     449     548     (99 )   (2 )   (97 )
   
 
 
 
 
 
Earnings (loss) before income taxes     (848 )   (486 )   (362 )   9     (371 )
Income tax provision     (89 )   (32 )   (121 )   (3 )   (124 )
   
 
 
 
 
 

Net earnings (loss)
 
$
(759
)
$
(518
)
$
(241
)
$
6
 
$
(247
)
   
 
 
 
 
 

Net loss per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic   $ (0.35 )                   $ (0.11 )
  Diluted   $ (0.35 )                   $ (0.11 )

Weighted average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic     2,202.9                       2,202.9  
  Diluted     2,202.9                       2,202.9  

Dividends paid per share
 
$
0.04
 
 
 
 
 
 
 
 
 
 
$
0.04
 

4


Motorola, Inc. and Subsidiaries
Consolidated Statements of Operations
(In millions, except per share amounts)

 
   For the Quarter Ended September 28, 2002
  
 
   GAAP Results
   Special Items Inc/(Exp)
   Excluding Special Items
   Exited Businesses Inc/(Exp)
   Ongoing Operations Excluding Special Items
  
Net sales   $ 6,532   $ —   $ 6,532   $ —   $ 6,532  
Costs of sales     4,212     (20 )   4,192     —     4,192  
   
 
 
 
 
 
Gross margin     2,320     (20 )   2,340     —     2,340  

Selling, general and administrative expenses
 
 
1,105
 
 
—
 
 
1,105
 
 
—
 
 
1,105
 
Research and development expenditures     948     —     948     —     948  
Reorganization of businesses     11     (11 )   —     —     —  

Other charges
 
 
(85
)
 
85
 
 
—
 
 
—
 
 
—
 
   
 
 
 
 
 
Operating earnings     341     54     287     —     287  

Other income/(expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Interest expense, net     (92 )   —     (92 )   —     (92 )
  Gains on sales of investments and
businesses, net		     37     37     —     —     —  
  Other     (71 )   (77 )   6     —     6  
   
 
 
 
 
 
Total other income/ (expense)     (126 )   (40 )   (86 )   —     (86 )
   
 
 
 
 
 
Earnings before income taxes     215     14     201     —     201  
Income tax provision     104     (36 )   68     —     68  
   
 
 
 
 
 
Net earnings (loss)   $ 111   $ (22 ) $ 133   $ —   $ 133  
   
 
 
 
 
 

Net earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic   $ 0.05                     $ 0.06  
  Diluted   $ 0.05                     $ 0.06  

Weighted average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic     2,295.8                       2,295.8  
  Diluted     2,308.2                       2,308.2  

Dividends paid per share
 
$
0.04
 
 
 
 
 
 
 
 
 
 
$
0.04
 

5

 
   For the Quarter Ended September 29, 2001
  
 
   GAAP Results
   Special Items Inc/(Exp)
   Excluding Special Items
   Exited Businesses Inc/(Exp)
   Ongoing Operations Excluding Special Items
  
Net sales   $ 7,522   $ —   $ 7,522   $ 162   $ 7,360  
Costs of sales     5,578     (98 )   5,480     (117 )   5,363  
   
 
 
 
 
 

Gross margin
 
 
1,944
 
 
(98
)
 
2,042
 
 
45
 
 
1,997
 
Selling, general and administrative expenses     1,160     (27 )   1,133     (28 )   1,105  
Research and development expenditures     1,026     —     1,026     (8 )   1,018  
Reorganization of businesses     133     (133 )   —     —     —  
Other charges     1,408     (1,408 )   —     —     —  
   
 
 
 
 
 
Operating earnings (loss)     (1,783 )   (1,666 )   (117 )   9     (126 )

Other income/(expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Interest expense, net     (140 )   (22 )   (118 )   (2 )   (116 )
  Gains on sales of investments and
businesses, net		     542     542     —     —     —  
  Other     (838 )   (830 )   (8 )   —     (8 )
   
 
 
 
 
 
Total other income/ (expense)     (436 )   (310 )   (126 )   (2 )   (124 )
   
 
 
 
 
 
Earnings (loss) before income taxes     (2,219 )   (1,976 )   (243 )   7     (250 )
Income tax provision     (811 )   732     (79 )   (2 )   (81 )
   
 
 
 
 
 
Net earnings (loss)   $ (1,408 ) $ (1,244 ) $ (164 ) $ 5   $ (169 )
   
 
 
 
 
 
Net loss per common share                                
  Basic   $ (0.64 )                   $ (0.08 )
  Diluted   $ (0.64 )                   $ (0.08 )

Weighted average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic     2,217.1                       2,217.1  
  Diluted     2,217.1                       2,217.1  

Dividends paid per share
 
$
0.04
 
 
 
 
 
 
 
 
 
 
$
0.04
 

6


Motorola, Inc. and Subsidiaries
Consolidated Statements of Operations
(In millions, except per share amounts)

 
   For the Quarter Ended December 31, 2002
  
 
   GAAP Results
   Special Items Inc/(Exp)
   Excluding Special Items
   Exited Businesses Inc/(Exp)
   Ongoing Operations Excluding Special Items
  
Net sales   $ 7,697   $ —   $ 7,697   $ —   $ 7,697  
Costs of sales     5,138     12     5,150     —     5,150  
   
 
 
 
 
 
Gross margin     2,559     12     2,547     —     2,547  

Selling, general and administrative expenses
 
 
1,082
 
 
—
 
 
1,082
 
 
—
 
 
1,082
 
Research and development expenditures     937     —     937     —     937  
Reorganization of businesses     87     (87 )   —     —     —  
Other charges     6     (6 )   —     —     —  
   
 
 
 
 
 
Operating earnings (loss)     447     (81 )   528     —     528  

Other income/(expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net     (56 )   —     (56 )   —     (56 )
Gains on sales of investments and businesses, net     24     24     —     —     —  
Other     (135 )   (131 )   (4 )   —     (4 )
   
 
 
 
 
 
Total other income/ (expense)     (167 )   (107 )   (60 )   —     (60 )
   
 
 
 
 
 
Earnings (loss) before income taxes     280     (188 )   468     —     468  
Income tax provision     106     71     177     —     177  
   
 
 
 
 
 
Net earnings (loss)   $ 174   $ (117 ) $ 291   $ —   $ 291  
   
 
 
 
 
 
Net earnings per common share                                
  Basic   $ 0.08                     $ 0.13  
  Diluted   $ 0.08                     $ 0.13  

Weighted average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic     2,305.5                       2,305.5  
  Diluted     2,322.0                       2,322.0  

Dividends paid per share
 
$
0.04
 
 
 
 
 
 
 
 
 
 
$
0.04
 

7

 
   For the Quarter Ended December 31, 2001
  
 
   GAAP Results
   Special Items Inc/(Exp)
   Excluding Special Items
   Exited Businesses Inc/(Exp)
   Ongoing Operations Excluding Special Items
  
Net sales   $ 7,468   $ —   $ 7,468   $ —   $ 7,468  
Costs of sales     5,451     (152 )   5,299     —     5,299  
   
 
 
 
 
 
Gross margin     2,017     (152 )   2,169     —     2,169  
Selling, general and administrative expenses     1,224     (31 )   1,193     —     1,193  
Research and development expenditures     1,008     —     1,008     —     1,008  
Reorganization of businesses     865     (865 )   —     —     —  
Other charges     537     (537 )   —     —     —  
   
 
 
 
 
 
Operating loss     (1,617 )   (1,585 )   (32 )   —     (32 )

Other income/(expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Interest expense, net     (108 )   —     (108 )   —     (108 )
  Gains on sales of investments and businesses, net     33     33     —     —     —  
  Other     (161 )   (159 )   (2 )   —     (2 )
   
 
 
 
 
 
Total other income/ (expense)     (236 )   (126 )   (110 )   —     (110 )
   
 
 
 
 
 
Loss before income taxes     (1,853 )   (1,711 )   (142 )   —     (142 )
Income tax provision     (616 )   572     (44 )   —     (44 )
   
 
 
 
 
 
Net loss   $ (1,237 ) $ (1,139 ) $ (98 ) $ —   $ (98 )
   
 
 
 
 
 
Net loss per common share                                
  Basic   $ (0.55 )                   $ (0.04 )
  Diluted   $ (0.55 )                   $ (0.04 )

Weighted average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic     2,236.8                       2,236.8  
  Diluted     2,236.8                       2,236.8  

Dividends paid per share
 
$
0.04
 
 
 
 
 
 
 
 
 
 
$
0.04
 

8

Motorola, Inc. and Subsidiaries
Consolidated Statements of Operations
(In millions, except per share amounts)

 
   For the Year Ended December 31, 2002
  
 
   GAAP Results
   Special Items
Inc/(Exp)
   Excluding
Special Items
   Exited
Businesses
Inc/(Exp)
   Ongoing
Operations
Excluding
Special Items
  
Net sales   $ 27,279   $ —   $ 27,279   $ —   $ 27,279  
Costs of sales     18,307     (56 )   18,251     —     18,251  
   
 
 
 
 
 
Gross margin     8,972     (56 )   9,028     —     9,028  

Selling, general and administrative expenses
 
 
4,472
 
 
12
 
 
4,484
 
 
—
 
 
4,484
 
Research and development expenditures     3,716     —     3,716     —     3,716  
Reorganization of businesses     1,764     (1,764 )   —     —     —  
Other charges     833     (833 )   —     —     —  
   
 
 
 
 
 
Operating earnings (loss)     (1,813 )   (2,641 )   828     —     828  

Other income/(expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Interest expense, net     (356 )   —     (356 )   —     (356 )
  Gains on sales of investments and businesses, net     96     96     —     —     —  
  Other     (1,373 )   (1,351 )   (22 )   —     (22 )
   
 
 
 
 
 
Total other income/ (expense)     (1,633 )   (1,255 )   (378 )   —     (378 )
   
 
 
 
 
 
Earnings (loss) before income taxes     (3,446 )   (3,896 )   450     —     450  
Income tax provision     (961 )   1,132     171     —     171  
   
 
 
 
 
 
Net earnings (loss)   $ (2,485 ) $ (2,764 ) $ 279   $ —   $ 279  
   
 
 
 
 
 

Net earnings (loss) per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic   $ (1.09 )                   $ 0.12  
  Diluted   $ (1.09 )                   $ 0.12  

Weighted average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic     2,282.3                       2,282.3  
  Diluted     2,282.3                       2,282.3  

Dividends paid per share
 
$
0.16
 
 
 
 
 
 
 
 
 
 
$
0.16
 

9


 
 
For the Year Ended December 31, 2001
 
 
   GAAP Results
   Special Items
Inc/(Exp)
   Excluding
Special Items
   Exited
Businesses
Inc/(Exp)
   Ongoing
Operations
Excluding
Special Items
  
Net sales   $ 30,486   $ —   $ 30,486   $ 553   $ 29,933  
Costs of sales     23,121     (1,081 )   22,040     (387 )   21,653  
   
 
 
 
 
 
Gross margin     7,365     (1,081 )   8,446     166     8,280  

Selling, general and administrative expenses
 
 
4,919
 
 
(85
)
 
4,834
 
 
(107
)
 
4,727
 
Research and development expenditures     4,275     —     4,275     (30 )   4,245  
Reorganization of businesses     1,858     (1,858 )   —     —     —  
Other charges     2,116     (2,116 )   —     —     —  
   
 
 
 
 
 
Operating earnings (loss)     (5,803 )   (5,140 )   (663 )   29     (692 )

Other income/(expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Interest expense, net     (413 )   (22 )   (391 )   (6 )   (385 )
  Gains on sales of investments and businesses, net     1,931     1,931     —     —     —  
  Other     (1,226 )   (1,212 )   (14 )   —     (14 )
   
 
 
 
 
 
Total other income/ (expense)     292     697     (405 )   (6 )   (399 )
   
 
 
 
 
 
Earnings (loss) before income taxes     (5,511 )   (4,443 )   (1,068 )   23     (1,091 )
Income tax provision     (1,574 )   1,223     (351 )   (7 )   (358 )
   
 
 
 
 
 
Net earnings (loss)   $ (3,937 ) $ (3,220 ) $ (717 ) $ 16   $ (733 )
   
 
 
 
 
 

Net loss per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic   $ (1.78 )                   $ (0.33 )
  Diluted   $ (1.78 )                   $ (0.33 )

Weighted average common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Basic     2,213.3                       2,213.3  
  Diluted     2,213.3                       2,213.3  

Dividends paid per share
 
$
0.16
 
 
 
 
 
 
 
 
 
 
$
0.16
 

10

Motorola, Inc. and Subsidiaries
Segment Information
(In millions)

        Summarized below are the Company's net sales by reportable segment for the quarters ended March 30, 2002 and March 31, 2001.

 
   For the Quarter Ended March 30, 2002
  
 
   Segment Net Sales
  
 
   GAAP Results
   Exited
Businesses
Inc/(Exp)
   Ongoing
Operations
   % Change
from 2001
  
Personal Communications Segment   $ 2,406   $ —   $ 2,406   3 %
Semiconductor Products Segment     1,127     —     1,127   -26 %
Global Telecom Solutions Segment     1,085     —     1,085   -36 %
Commercial, Govt, and Industrial Solutions Segment     802     —     802   -10 %
Broadband Communications Segment     525     —     525   -36 %
Integrated Electronic Systems Segment     509     —     509   -20 %
Other Products Segment     107     —     107   -47 %
Adjustments & Eliminations     (380 )   —     (380 ) -22 %
   
 
 
     
  Segment Totals   $ 6,181   $ —   $ 6,181   -19 %
   
 
 
 
 

 
 
For the Quarter Ended March 31, 2001
 
 
   Segment Net Sales
  
 
   GAAP Results
   Exited
Businesses
Inc/(Exp)
   Ongoing
Operations
  
Personal Communications Segment   $ 2,336   $ —   $ 2,336  
Semiconductor Products Segment     1,517     —     1,517  
Global Telecom Solutions Segment     1,685     —     1,685  
Commercial, Govt, and Industrial Solutions Segment     1,048     154     894  
Broadband Communications Segment     818     —     818  
Integrated Electronic Systems Segment     637     —     637  
Other Products Segment     245     43     202  
Adjustments & Eliminations     (487 )   —     (487 )
   
 
 
 
  Segment Totals   $ 7,799   $ 197   $ 7,602  
   
 
 
 

11


Motorola, Inc. and Subsidiaries
Segment Information
(In millions)

        Summarized below are the Company's net sales by reportable segment for the quarters ended June 29, 2002 and June 30, 2001.

 
   For the Quarter Ended June 29, 2002
  
 
   Segment Net Sales
  
 
   GAAP Results
   Exited
Businesses
Inc/(Exp)
   Ongoing
Operations
   % Change
from 2001
  
Personal Communications Segment   $ 2,684   $ —   $ 2,684   3 %
Semiconductor Products Segment     1,256     —     1,256   -3 %
Global Telecom Solutions Segment     1,262     —     1,262   -24 %
Commercial, Govt, and Industrial Solutions Segment     889     —     889   1 %
Broadband Communications Segment     554     —     554   -35 %
Integrated Electronic Systems Segment     566     —     566   3 %
Other Products Segment     129     —     129   -40 %
Adjustments & Eliminations     (471 )   —     (471 ) -16 %
   
 
 
     
  Segment Totals   $ 6,869   $ —   $ 6,869   -8 %
   
 
 
 
 

 
 
For the Quarter Ended June 30, 2001
 
 
   Segment Net Sales
  
 
   GAAP Results
   Exited
Businesses
Inc/(Exp)
   Ongoing
Operations
  
Personal Communications Segment   $ 2,604   $ —   $ 2,604  
Semiconductor Products Segment     1,295     —     1,295  
Global Telecom Solutions Segment     1,669     —     1,669  
Commercial, Govt, and Industrial Solutions Segment     1,042     161     881  
Broadband Communications Segment     851     —     851  
Integrated Electronic Systems Segment     549     —     549  
Other Products Segment     248     33     215  
Adjustments & Eliminations     (561 )   —     (561 )
   
 
 
 
  Segment Totals   $ 7,697   $ 194   $ 7,503  
   
 
 
 

12


Motorola, Inc. and Subsidiaries
Segment Information
(In millions)

        Summarized below are the Company's net sales by reportable segment for the quarters ended September 28, 2002 and September 29, 2001.

 
   For the Quarter Ended September 28, 2002
  
 
   Segment Net Sales
  
 
   GAAP Results
   Exited
Businesses
Inc/(Exp)
   Ongoing
Operations
   % Change
from 2001
  
Personal Communications Segment   $ 2,715   $ —   $ 2,715   -2 %
Semiconductor Products Segment     1,275     —     1,275   15 %
Global Telecom Solutions Segment     1,029     —     1,029   -42 %
Commercial, Govt, and Industrial Solutions Segment     884     —     884   -1 %
Broadband Communications Segment     519     —     519   -19 %
Integrated Electronic Systems Segment     544     —     544   6 %
Other Products Segment     120     —     120   1 %
Adjustments & Eliminations     (554 )   —     (554 ) 21 %
   
 
 
     
  Segment Totals   $ 6,532   $ —   $ 6,532   -11 %
   
 
 
 
 
 
   For the Quarter Ended September 29, 2001
    
 
   Segment Net Sales
    
 
   GAAP Results
   Exited
Businesses
Inc/(Exp)
   Ongoing
Operations
    
Personal Communications Segment   $ 2,775   $ —   $ 2,775    
Semiconductor Products Segment     1,111     —     1,111    
Global Telecom Solutions Segment     1,772     —     1,772    
Commercial, Govt, and Industrial Solutions Segment     1,031     141     890    
Broadband Communications Segment     637     —     637    
Integrated Electronic Systems Segment     513     —     513    
Other Products Segment     140     21     119    
Adjustments & Eliminations     (457 )   —     (457 )  
   
 
 
   
  Segment Totals   $ 7,522   $ 162   $ 7,360    
   
 
 
   

13


Motorola, Inc. and Subsidiaries
Segment Information
(In millions)

        Summarized below are the Company's net sales by reportable segment for the quarters ended December 31, 2002 and December 31, 2001.

 
   For the Quarter Ended December 31, 2002
  
 
   Segment Net Sales
  
 
   GAAP Results
   Exited
Businesses
Inc/(Exp)
   Ongoing
Operations
   % Change
from 2001
  
Personal Communications Segment   $ 3,369   $ —   $ 3,369   10.4 %
Semiconductor Products Segment     1,342     —     1,342   14.2 %
Global Telecom Solutions Segment     1,235     —     1,235   -11.0 %
Commercial, Govt, and Industrial Solutions Segment     1,174     —     1,174   -2.2 %
Broadband Communications Segment     489     —     489   -15.5 %
Integrated Electronic Systems Segment     570     —     570   5.6 %
Other Products Segment     130     —     130   6.6 %
Adjustments & Eliminations     (612 )   —     (612 ) 3.7 %
   
 
 
     
  Segment Totals   $ 7,697   $ —   $ 7,697   3.1 %
   
 
 
 
 
 
   For the Quarter Ended December 31, 2001
    
 
   Segment Net Sales
    
 
   GAAP Results
   Exited
Businesses
Inc/(Exp)
   Ongoing
Operations
    
Personal Communications Segment   $ 3,053   $ —   $ 3,053    
Semiconductor Products Segment     1,175     —     1,175    
Global Telecom Solutions Segment     1,388     —     1,388    
Commercial, Govt, and Industrial Solutions Segment     1,201     —     1,201    
Broadband Communications Segment     579     —     579    
Integrated Electronic Systems Segment     540     —     540    
Other Products Segment     122     —     122    
Adjustments & Eliminations     (590 )   —     (590 )  
   
 
 
   
  Segment Totals   $ 7,468   $ —   $ 7,468    
   
 
 
   

14


Motorola, Inc. and Subsidiaries
Segment Information
(In millions)

        Summarized below are the Company's net sales by reportable segment for the years ended December 31, 2002 and December 31, 2001.

 
   For the Year Ended December 31, 2002
  
 
   Segment Net Sales
  
 
   GAAP Results
   Exited Businesses Inc/(Exp)
   Ongoing Operations
   % Change from 2001
  
Personal Communications Segment   $ 11,174   $ —   $ 11,174   4 %
Semiconductor Products Segment     5,000     —     5,000   -2 %
Global Telecom Solutions Segment     4,611     —     4,611   -29 %
Commercial, Govt, and Industrial                        
  Solutions Segment     3,749     —     3,749   -3 %
Broadband Communications Segment     2,087     —     2,087   -28 %
Integrated Electronic Systems Segment     2,189     —     2,189   -2 %
Other Products Segment     486     —     486   -26 %
Adjustments & Eliminations     (2,017 )   —     (2,017 ) -4 %
   
 
 
 
 
  Segment Totals   $ 27,279   $ —   $ 27,279   -9 %
   
 
 
 
 
 
   For the Year Ended December 31, 2001
    
 
   Segment Net Sales
    
 
   GAAP Results
   Exited Businesses Inc/(Exp)
   Ongoing Operations
    
Personal Communications Segment   $ 10,768   $ —   $ 10,768    
Semiconductor Products Segment     5,098     —     5,098    
Global Telecom Solutions Segment     6,514     —     6,514    
Commercial, Govt, and Industrial                      
Solutions Segment     4,322     456     3,866    
Broadband Communications Segment     2,885     —     2,885    
Integrated Electronic Systems Segment     2,239     —     2,239    
Other Products Segment     755     97     658    
Adjustments & Eliminations     (2,095 )   —     (2,095 )  
   
 
 
   
  Segment Totals   $ 30,486   $ 553   $ 29,933    
   
 
 
   

15


Motorola, Inc. and Subsidiaries
Special Items Description
(In millions)

        Summarized below are the Company's special items descriptions for: (i) the quarters ended March 30, June 29, September 28, and December 31, 2002, (ii) the quarters ended March 31, June 30, September 29 and December 31, 2001, and (iii) the years ended December 31, 2002 and 2001.

        Bracketed amounts represent income.

 
   2002 Special Items
  
 
   Quarter
Ended
March 30
   Quarter
Ended
June 29
   Quarter
Ended
September 28
   Quarter
Ended
December 31
   Year
Ended
December 31
  
Employee Severance, Net of Reversals   $ 53   $ 218   $ 38   $ 52   $ 361  
Exit Costs, Net of Reversals     (2 )   90     (2 )   (7 )   79  
Fixed Asset Impairments     155     1,200     (5 )   30     1,380  
Investment Impairments     188     955     77     33     1,253  
Goodwill/Intangible Asset Impairments     —     326     —     —     326  
In-Process Research & Development Charges     11     —     —     1     12  
Potentially Uncollectible Finance Receivables (Telsim)     —     526     —     —     526  
Iridium Settlements     —     —     (60 )   (3 )   (63 )
Gains on Sales of Investments and Businesses, Net     (11 )   (24 )   (37 )   (24 )   (96 )
Debt Redemption Charges, Net           —     —     98     98  
Other     (20 )   57     (25 )   8     20  
   
 
 
 
 
 
Pre-tax Special Items   $ 374   $ 3,348   $ (14 ) $ 188   $ 3,896  
Income Tax Provision     (109 )   (988 )   36     (71 )   (1,132 )
   
 
 
 
 
 
After-tax Special Items   $ 265   $ 2,360   $ 22   $ 117   $ 2,764  
   
 
 
 
 
 
 
   2001 Special Items
  
 
   Quarter
Ended
March 31
   Quarter
Ended
June 30
   Quarter
Ended
September 29
   Quarter
Ended
December 31
   Year
Ended
December 31
  
Employee Severance, Net of Reversals   $ 220   $ 318   $ 122   $ 458   $ 1,118  
Exit Costs, Net of Reversals     33     143     48     167     391  
Fixed Asset Impairments     108     296     51     392     847  
Investment Impairments     29     194     830     159     1,212  
Goodwill/Intangible Asset Impairments     72     —     —     44     116  
Amortization of Goodwill     34     31     29     31     125  
In-Process Research & Development Charges     —     —     20     20     40  
Product Portfolio Simplification Write-Offs     405     168     10     —     583  
Potentially Uncollectible Finance Receivables     —     100     1,354     47     1,501  
Iridium Settlements     —     —     —     365     365  
Gains on Sales of Investments and Businesses, Net     (614 )   (742 )   (542 )   (33 )   (1,931 )
Other     (17 )   (22 )   54     61     76  
   
 
 
 
 
 
Pre-tax Special Items   $ 270   $ 486   $ 1,976   $ 1,711   $ 4,443  
Income Tax Provision     49     32     (732 )   (572 )   (1,223 )
   
 
 
 
 
 
After-tax Special Items   $ 319   $ 518   $ 1,244   $ 1,139   $ 3,220  
   
 
 
 
 
 

16



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Motorola, Inc. and Subsidiaries Consolidated Statements of Operations (In millions, except per share amounts)
Motorola, Inc. and Subsidiaries Consolidated Statements of Operations (In millions, except per share amounts)