Motorola 1999 Annual Report Download - page 32

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31 MOTOROLA, INC. AND SUBSIDIARIES
CONDENSED NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share amounts)
Merger with General Instrument Corporation
On January 5, 2000, the Company and General Instrument Corporation completed their previously announced merger.
The merger positions the Company as a leader in the convergence of voice, video and data technologies. The new
Broadband Communications Sector will focus on solutions that deliver interactive television, the Internet and telephone
services over wired networks. The new sector combines the operations of General Instrument with the cable modem
and cable telephony businesses of the Company’s Internet and Networking Group. Through the merger the Company
also acquired a majority ownership in Next Level Communications, Inc., which completed an initial public offering in
the fourth quarter of 1999. The Company issued 100.6 million shares to effect the merger and will account for the
merger under the pooling-of-interests method of accounting. The following tables present capsule combined operating
results for the three years ending December 31, 1999, 1998 and 1997 and capsule combined balance sheets as of
December 31, 1999 and 1998 as if the merger had occurred on January 1, 1997. The Company will record a charge
in the first quarter of 2000 for costs associated with the merger and expected integration costs. Full-line combined
operating results and balance sheets are included in the appendix to the Company’s proxy statement for the 2000
Annual Meeting of Stockholders.
4.
CAPSULE COMBINED BALANCE SHEETS (UNAUDITED)
1999 1998
Assets
Total current assets $17,579 $14,421
Property, plant and equipment, net 9,591 10,286
Other assets 13,313 6,244
Total assets $40,483 $30,951
Liabilities and Stockholders’ Equity
Total current liabilities ÷ ÷ 12,891 11,889
Long-term debt and other liabilities ÷ 8,406 5,149
Total liabilities 21,297 17,038
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust holding
solely company-guaranteed debentures 484 –
Total stockholders’ equity ÷ 18,702 13,913
Total liabilities and stockholders’ equity ÷ $40,483 $30,951
CAPSULE COMBINED OPERATING RESULTS (UNAUDITED)
1999 1998 1997
Net sales $33,075 $31,340 $31,498
Earnings (loss) before income taxes 1,298 (1,280) 1,806
Net earnings (loss) $«««««900 $««««(907) $««1,164
Basic earnings (loss) per common share $««««1.27 $«««(1.31) $««««1.71
Diluted earnings (loss) per common share $««««1.23 $«««(1.31) $««««1.67
Basic weighted average common shares outstanding 706.5 690.3 680.3
Diluted weighted average common shares outstanding 734.0 690.3 697.6
Years Ended December 31
December 31