Motorola 2013 Annual Report Download - page 31

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29
Results of Operations
Years ended December 31
(Dollars in millions, except per share amounts) 2013 % of
Sales ** 2012 % of
Sales ** 2011 % of
Sales **
Net sales from products $ 6,118 $ 6,363 $ 6,068
Net sales from services 2,578 2,335 2,135
Net sales 8,696 8,698 8,203
Costs of product sales 2,852 46.6 % 2,844 44.7 % 2,723 44.9 %
Costs of services sales 1,603 62.2 % 1,506 64.5 % 1,334 62.5 %
Costs of sales 4,455 51.2 % 4,350 50.0 % 4,057 49.5 %
Gross margin 4,241 48.8 % 4,348 50.0 % 4,146 50.5 %
Selling, general and administrative expenses 1,838 21.1 % 1,963 22.6 % 1,912 23.3 %
Research and development expenditures 1,055 12.1 % 1,075 12.4 % 1,035 12.6 %
Other charges 133 1.5 % 54 0.6 % 341 4.2 %
Operating earnings 1,215 14.0 % 1,256 14.4 % 858 10.5 %
Other income (expense):
Interest expense, net (113) (1.3)% (66) (0.8)% (74) (0.9)%
Gains on sales of investments and businesses,
net 40 0.5 % 39 0.4 % 23 0.3 %
Other 3 — % (14) (0.2)% (69) (0.8)%
Total other expense (70) (0.8)% (41) (0.5)% (120) (1.5)%
Earnings from continuing operations before
income taxes 1,145 13.2 % 1,215 14.0 % 738 9.0 %
Income tax expense (benefit) 40 0.5 % 337 3.9 % (3) — %
Earnings from continuing operations 1,105 12.7 % 878 10.1 % 741 9.0 %
Less: Earnings (loss) attributable to
noncontrolling interests 6 0.1 % — — % (6) (0.1)%
Earnings from continuing operations* 1,099 12.6 % 878 10.1 % 747 9.1 %
Earnings from discontinued operations, net of tax — — % 3 — % 411 5.0 %
Net earnings* $ 1,099 12.6 % $ 881 10.1 % $ 1,158 14.1 %
Earnings per common share:
Continuing operations $ 4.06 $ 2.95 $ 2.20
Discontinued operations —0.01 1.21
$ 4.06 $ 2.96 $ 3.41
* Amounts attributable to Motorola Solutions, Inc. common shareholders.
** Percentages may not add due to rounding.