1. Motorola, Inc. and Subsidiaries
Consolidated Condensed Statements of Operations
(In millions, except per share amounts)
Quarter Ended Quarter Ended
December 31, 2004 December 31, 2003
Net sales $ 8,842 $ 6,935
Costs of sales 5,872 4,733
Gross margin 2,970 2,202
Selling, general and administrative expenses 1,098 1,007
Research and development expenditures 816 699
Reorganization of businesses (30) 11
Other charges 50 17
Operating earnings 1,036 468
Other income (expense):
Interest expense, net (23) (59)
Gains on sales of investments and businesses 112 218
Other (22) (22)
Total other income (expense) 67 137
Earnings before income taxes 1,103 605
Income tax expense 416 164
Earnings from continuing operations $ 687 $ 441
Earnings (loss) from discontinued operations, net of tax $ (33) $ 48
Net earnings $ 654 $ 489
Net earnings (loss) per common share
Basic:
Continuing operations $ 0.29 $ 0.19
Discontinued operations $ (0.02) 0.02
0.27 0.21
Diluted:
Continuing operations $ 0.28 $ 0.18
Discontinued operations (0.01) 0.02
0.27 0.20
Weighted average common shares outstanding
Basic 2,402.7 2,331.5
Diluted 2,475.6 2,457.4
Dividends paid per share $ 0.04 $ 0.04
Year Ended Year Ended
December 31, 2004 December 31, 2003
Net sales $ 31,323 $ 23,155
Costs of sales 20,811 15,588
Gross margin 10,512 7,567
Selling, general and administrative expenses 4,206 3,529
Research and development expenditures 3,060 2,799
Reorganization of businesses (15) 23
Other charges (income) 111 (57)
Operating earnings 3,150 1,273
Other income (expense):
Interest expense, net (199) (294)
Gains on sales of investments and businesses 460 539
Other (140) (142)
Total other income (expense) 121 103
Earnings before income taxes 3,271 1,376
Income tax expense 1,073 448
Earnings from continuing operations $ 2,198 $ 928
Loss from discontinued operations, net of tax $ (659) $ (35)
Net earnings $ 1,539 $ 893
Net earnings (loss) per common share
Basic:
Continuing operations $ 0.93 $ 0.40
Discontinued operations (0.28) $ (0.02)
0.65 0.38
Diluted:
Continuing operations $ 0.91 $ 0.39
Discontinued operations (0.27) (0.01)
0.64 0.38
Weighted average common shares outstanding
Basic 2,365.0 2,321.9
Diluted 2,413.9 2,351.2
Dividends paid per share $ 0.16 $ 0.16

2. Motorola, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)
ASSETS December 31, December 31,
2004 2003
Cash and cash equivalents $ 10,556 $ 7,790
Short-term investments 152 139
Accounts receivable, net 4,407 3,822
Inventories, net 2,556 2,099
Deferred income taxes 1,540 1,310
Other current assets 1,700 874
Current assets of discontinued operations - 1,741
Total current assets 20,911 17,775
Property, plant and equipment, net 2,332 2,455
Investments 3,241 3,278
Deferred income taxes 2,349 3,218
Other assets 1,880 2,086
Non-current assets of discontinued operations - 3,154
Total assets $ 30,713 $ 31,966
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable and current portion of
long-term debt $ 717 $ 869
Accounts payable 3,325 2,458
Accrued liabilities 6,352 5,218
Current liabilities of discontinued operations - 756
Total current liabilities 10,394 9,301
Long-term debt 4,578 6,673
Other liabilities 2,407 2,582
Non-current liabilities of discontinued operations - 235
Company-obligated mandatorily redeemable
preferred securities of subsidiary
trust holding solely company-
guaranteed debentures - 486
Stockholders' equity 13,334 12,689
Total liabilities and stockholders' equity $ 30,713 $ 31,966

3. Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
Summarized below are the Company's net sales from continuing operations by reportable segment
for the quarters and years ended December 31, 2004 and December 31, 2003.
Segment Net Sales
Quarter Ended Quarter Ended % Change
December 31, 2004 December 31, 2003 from 2003
Personal Communications Segment $ 4,947 $ 3,276 51%
Global Telecom Solutions Segment 1,389 1,365 2%
Commercial, Govt, and Industrial
Solutions Segment 1,280 1,237 3%
Integrated Electronic Systems Segment 703 669 5%
Broadband Communications Segment 691 555 25%
Other Products Segment 122 87 40%
Adjustments & Eliminations (290) (254) 14%
Segment Totals $ 8,842 $ 6,935 27%
Segment Net Sales
Year Ended Year Ended % Change
December 31, 2004 December 31, 2003 from 2003
Personal Communications Segment $ 16,823 $ 10,978 53%
Global Telecom Solutions Segment 5,457 4,417 24%
Commercial, Govt, and Industrial
Solutions Segment 4,588 4,131 11%
Integrated Electronic Systems Segment 2,696 2,265 19%
Broadband Communications Segment 2,335 1,857 26%
Other Products Segment 387 323 20%
Adjustments & Eliminations (963) (816) 18%
Segment Totals $ 31,323 $ 23,155 35%

4. Motorola, Inc. and Subsidiaries
Segment Information
(In millions)
Summarized below are the Company's operating earnings (loss) from continuing operations by
reportable segment for the quarters and years ended December 31, 2004 and December 31, 2003.
Segment Operating Earnings (Loss)
GAAP Results
Quarter Ended Quarter Ended
December 31, 2004 December 31, 2003
Personal Communications Segment $ 526 $ 127
Global Telecom Solutions Segment 281 138
Commercial, Govt, and Industrial
Solutions Segment 207 240
Integrated Electronic Systems Segment 42 66
Broadband Communications Segment 47 (52)
Other Products Segment (95) (13)
Adjustments & Eliminations 51 (4)
Segment Totals 1,059 502
General Corporate (23) (34)
Operating Earnings $ 1,036 $ 468
Segment Operating Earnings (Loss)
GAAP Results
Year Ended Year Ended
December 31, 2004 December 31, 2003
Personal Communications Segment $ 1,708 $ 479
Global Telecom Solutions Segment 761 247
Commercial, Govt, and Industrial
Solutions Segment 753 562
Integrated Electronic Systems Segment 147 161
Broadband Communications Segment 125 (38)
Other Products Segment (229) (44)
Adjustments & Eliminations 47 3
Segment Totals 3,312 1,370
General Corporate (162) (97)
Operating Earnings $ 3,150 $ 1,273