Motorola 2015 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2015 Motorola annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 103

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103

30
Results of Operations
Years ended December 31
(Dollars in millions, except per share amounts) 2015
% of
Sales ** 2014
% of
Sales ** 2013
% of
Sales **
Net sales from products $3,676 $ 3,807 $ 4,109
Net sales from services 2,019 2,074 2,118
Net sales 5,695 5,881 6,227
Costs of product sales 1,625 44.2 % 1,678 44.1 % 1,808 44.0 %
Costs of services sales 1,351 66.9 % 1,372 66.2 % 1,310 61.9 %
Costs of sales 2,976 52.3 % 3,050 51.9 % 3,118 50.1 %
Gross margin 2,719 47.7 % 2,831 48.1 % 3,109 49.9 %
Selling, general and administrative expenses 1,021 17.9 % 1,184 20.1 % 1,330 21.4 %
Research and development expenditures 620 10.9 % 681 11.6 % 761 12.2 %
Other charges 84 1.5 % 1,972 33.5 % 71 1.1 %
Operating earnings (loss) 994 17.5 % (1,006) (17.1)% 947 15.2 %
Other income (expense):
Interest expense, net (173) (3.0)% (126) (2.1)% (113) (1.8)%
Gains on sales of investments 107 1.9 % 5 0.1 % 37 0.6 %
Other (11) (0.2)% (34) (0.6)% 9 0.1 %
Total other expense (77) (1.4)% (155) (2.6)% (67) (1.1)%
Earnings (loss) from continuing operations before
income taxes 917 16.1 % (1,161) (19.7)% 880 14.1 %
Income tax expense (benefit) 274 4.8 % (465) (7.9)% (59) (0.9)%
Earnings (loss) from continuing operations 643 11.3 % (696) (11.8)% 939 15.1 %
Less: Earnings attributable to noncontrolling
interests 30.1% 1—% 60.1%
Earnings (loss) from continuing operations* 640 11.2 % (697) (11.9)% 933 15.0 %
Earnings (loss) from discontinued operations, net of
tax (30) (0.5)% 1,996 33.9 % 166 2.7 %
Net earnings* $ 610 10.7 % $ 1,299 22.1 % $ 1,099 17.6 %
Earnings (loss) per diluted common share*:
Continuing operations $3.17 $ (2.84) $ 3.45
Discontinued operations (0.15) 8.13 0.61
Earnings per diluted common share* $3.02
$5.29
$4.06
* Amounts attributable to Motorola Solutions, Inc. common shareholders.
** Percentages may not add due to rounding.
Geographic Market Sales by Locale of End Customer
2015 2014 2013
North America 65% 61% 63%
Latin America 6% 9% 8%
EA 15% 17% 16%
AP 12% 11% 12%
ME 2% 2% 1%
100% 100% 100%