Summary
This 8-K filing from Motorola, Inc. (prior to its split into Motorola Solutions and Motorola Mobility) primarily serves to reclassify historical financial data to reflect the divestiture of its Networks business to Nokia Siemens Networks B.V. and other previously disposed businesses. This reclassification will move the results of these divested operations into 'discontinued operations' for reporting purposes, starting in the third quarter of 2010. This is crucial for investors as it provides a clearer picture of the ongoing, continuing operations of the company. The key takeaway for investors is Motorola's strategic shift to focus on its core businesses: Mobile Devices, Home, and Enterprise Mobility Solutions. The sale of the Networks business for $1.2 billion in cash, expected to close by early 2011, along with the reclassification of other smaller disposed businesses, aims to simplify the company's structure and allow for more transparent comparability of financial performance going forward.
Key Highlights
- 1Motorola, Inc. is reclassifying historical financial data to reflect discontinued operations for its Networks business and other previously disposed businesses.
- 2The reclassification will allow for clearer reporting of continuing operations starting in Q3 2010.
- 3Agreement to sell a majority of the Networks business assets and liabilities to Nokia Siemens Networks B.V. for $1.2 billion in cash.
- 4The Networks business sale is expected to close by early 2011.
- 5Certain assets, including iDEN infrastructure and related patents, are excluded from the Nokia Siemens Networks sale and will remain with Motorola.
- 6The company is reorganizing its reporting segments to Mobile Devices, Home, and Enterprise Mobility Solutions.
- 7Revised segment information tables for fiscal years 2007-2009 and H1 2010 are provided as an exhibit to aid comparability.