Summary
Motorola, Inc. (MSI) filed an 8-K on April 4, 2010, to provide revised segment financial information for the fiscal years 2007, 2008, and 2009. This reclassification is driven by a realignment of the company's business structure in anticipation of its planned separation into two independent, publicly traded companies, targeted for the first quarter of 2011. The core of the filing details the creation of four new operating business segments: Mobile Devices, Home, Enterprise Mobility Solutions, and Networks. Previously, certain corporate costs, such as share-based compensation and asset impairments, were categorized under Corporate and Eliminations. These costs will now be allocated directly to the respective operating segments. This change is intended to enhance comparability for investors as they evaluate the historical performance of the distinct businesses that will eventually form the two new entities.
Key Highlights
- 1Motorola, Inc. announced a realignment of its business structure in preparation for a planned separation into two independent public companies, expected in Q1 2011.
- 2The company will now report financial results across four distinct operating business segments: Mobile Devices, Home, Enterprise Mobility Solutions, and Networks.
- 3Previously, certain corporate costs (e.g., share-based compensation, intangible asset amortization, asset impairments) were aggregated under 'Corporate' and 'Other/Eliminations'.
- 4These corporate costs will now be allocated to the relevant operating business segments starting from Q1 2010.
- 5The filing provides revised segment information for fiscal years 2007, 2008, and 2009 to reflect these changes.
- 6The reclassifications do not alter the previously reported consolidated financial statements of Motorola, Inc.
- 7This move aims to improve the comparability of historical financial data with future segment performance for investors.