As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

10/28/10  Motorola Solutions, Inc.          8-K:2,9    10/28/10    2:1.7M                                   Merrill Corp-MD/FA

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                      HTML     22K 
 2: EX-99.1     Miscellaneous Exhibit                               HTML    950K 

 

operations. Sales, including $871 million associated with discontinued operations, totaled $5.8 billion, up 6 percent from the year-ago period.

 

GAAP net earnings in the third quarter of 2010 were $109 million, or $0.05 per share, compared to $12 million, or $0.01 per share, in the third quarter 2009. On a non-GAAP basis, including discontinued operations, earnings in the third quarter of 2010 were $380 million, or $0.16 per share, exceeding the Company’s guidance of $0.10 - $0.12 per share. Non-GAAP earnings, including discontinued operations, in the third quarter of 2009 were $131 million, or $0.06 per share.

 

GAAP earnings from continuing operations in the third quarter of 2010, which excludes the portion of the Networks business expected to be acquired by NSN, were $7 million, compared to a loss from continuing operations of $90 million in the third quarter of 2009. Non-GAAP earnings from continuing operations in the third quarter of 2010 were $278 million, or $0.12 per share, up from $0.01 per share in the third quarter of 2009.

 

Non-GAAP financial information excludes after-tax costs of approximately $0.12 per share related to stock-based compensation expense, intangible assets amortization expense and highlighted items. Details on these non-GAAP adjustments and the use of non-GAAP measures are included later in this press release.

 

During the quarter, the Company generated positive operating cash flow from continuing operations of $502 million and ended the quarter with a total cash** position of $9.0 billion. Net cash*** increased to $5.6 billion from $4.9 billion in the second quarter.

 

“In the third quarter, Motorola Mobility showed positive momentum across the business, with Mobile Devices reaching profitability for the first time in over three years and Home continues to maintain its leadership position,” said Sanjay Jha, Motorola co-chief executive officer and Motorola Mobility CEO. “Mobile Devices’ DROID™X continues to sell extremely well, and we have had several other successful smartphone launches globally, including the DROID™ 2, the MING® series in China, as well as a well-received introduction of our enterprise-ready DROID™ PRO. As we continue to make progress across the organization, we remain focused on further improving our financial results and pursuing the delivery of best-in-class software and hardware experiences to consumers and business users.”

 

Greg Brown, Motorola co-chief executive officer and Motorola Solutions CEO, said, “Our Enterprise Mobility Solutions business continues to deliver very solid financial results. In enterprise markets, we continued to experience double-digit sales growth in all four geographic regions we serve. Additionally, our public safety business remains resilient. Going forward, we are focused on next-

 

 

Consolidated GAAP Results

 

A comparison of results from operations is as follows:

 

		Third Quarter
(In millions, except per share amounts)		2010		2009
Net sales		$4,890		$4,336

 

Gross margin		1,780		1,439
Operating earnings (loss)		225		(11)
Earnings (loss) from continuing operations****		7		(90)
Earnings from discontinued operations****		102		102
Net earnings ****		109		12
Diluted earnings (loss) per common share: ****
Continuing operations		$0.00		$(0.04)
Discontinued operations		0.05		0.05
		$0.05		$0.01
Weighted average diluted common shares outstanding		2,374.4		2,299.6

 

Highlighted Items, Stock-Based Compensation Expense and Intangible Assets Amortization Expense

 

The table below includes highlighted items, stock-based compensation expense and intangible assets amortization expense for the third quarter of 2010.

 

		Earnings from Continuing Operations		Net Earnings
GAAP Earnings per Common Share		$0.00		$0.05
Highlighted Items:
Separation-related transaction costs		0.02		0.02
Tax-related expense		0.06		0.06
Reorganization of business charges		0.01		0.01
IP reserve adjustments		(0.01)		(0.01)
Total Highlighted Items		0.08		0.08
Stock-based compensation expense		0.02		0.02
Intangible assets amortization expense		0.02		0.02
Stock-Based Compensation Expense and Intangible Assets Amortization Expense		0.04		0.04
Total Non-GAAP Adjustments		0.12		0.12
Non-GAAP Earnings per Common Share		$0.12		$0.16 *

 

* EPS amount does not add up due to rounding.

 

 

Conference Call and Webcast

 

Motorola will host its quarterly conference call beginning at 8 a.m. (U.S. Eastern Time) on Thursday, October 28. The conference call will be webcast live with audio and slides at www.motorola.com/investor.

 

Use of Non-GAAP Financial Information

 

In addition to the GAAP results included in this presentation, Motorola also has included non-GAAP measurements of results. Motorola has provided these non-GAAP measurements to help investors better understand Motorola’s core operating performance, enhance comparisons of Motorola’s core operating performance from period to period and allow better comparisons of Motorola’s operating performance to that of its competitors. Among other things, the Company’s management uses these operating results, excluding the identified items, to evaluate the performance of its businesses and to evaluate results relative to certain incentive compensation targets. Management uses operating results excluding these items because it believes this measurement enables it to make better period-to-period evaluations of the financial performance of its core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and the Company compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurements. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP.

 

Highlighted items: The Company has excluded the effects of highlighted items (and any reversals of highlighted items recorded in prior periods) from its non-GAAP operating expenses and net income measurements because the Company believes that these historical items do not reflect expected future operating earnings or expenses and do not contribute to a meaningful evaluation of the Company’s current operating performance or comparisons to the Company’s past operating performance.

 

Stock-based compensation expense: The Company has excluded stock-based compensation expense from its non-GAAP operating expenses and net income measurements. Although stock-based compensation is a key incentive offered to our employees and the Company believes such compensation contributed to the revenue earned during the periods presented and also believes it will contribute to the generation of future period revenues, the Company continues to evaluate its performance excluding stock-based compensation expense primarily because it represents a significant non-cash expense. Stock-based compensation expense will recur in future periods.

 

 

Intangible assets amortization expense: The Company has excluded intangible assets amortization expense from its non-GAAP operating expenses and net income measurements, primarily because it represents a significant non-cash expense and because the Company evaluates its performance excluding intangible assets amortization expense. Amortization of intangible assets is consistent in amount and frequency but is significantly affected by the timing and size of the Company’s acquisitions. Investors should note that the use of intangible assets contributed to the Company’s revenues earned during the periods presented and will contribute to the Company’s future period revenues as well. Intangible assets amortization expense will recur in future periods.

 

Details of the above items and reconciliations of the non-GAAP measurements to the corresponding GAAP measurements can be found at the end of this press release.

 

Business Risks

 

This press release contains "forward-looking statements" within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes”, “expects”, “intends”, “anticipates”, “estimates” and similar expressions. We can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to, statements about the timing and financial impact of the launch of new products, the separation of Motorola into two independent, public companies, and Motorola's financial outlook for the fourth quarter of 2010. Motorola cautions the reader that the risk factors below, as well as those on pages 17 through 29 in Item 1A of Motorola's 2009 Annual Report on Form 10-K and in its other SEC filings available for free on the SEC’s website at www.sec.gov and on Motorola’s website at www.motorola.com, could cause Motorola's actual results to differ materially from those estimated or predicted in the forward-looking statements. Many of these risks and uncertainties cannot be controlled by Motorola and factors that may impact forward-looking statements include, but are not limited to: (1) possible negative effects on the Company's business operations, financial performance or assets as a result of its plan to create two independent, publicly traded companies, which may include: (i) diminished purchasing leverage and increased exposure to market fluctuations as a result of being a smaller, more focused company, (ii) ongoing obligations relating to certain debt and pension liabilities and certain corporate litigation matters retained by Motorola after the separation, (iii) the increased percentage of cash and cash equivalents retained by Motorola after the separation being

 

 

held outside of the U.S., and (iv) the allocation of certain logos, trademarks, trade names and service marks including “MOTOROLA” to Motorola Mobility; (2) the economic outlook for the telecommunications and broadband industries; (3) the Company's ability to improve financial performance in its Mobile Devices business, including the success of its smartphone strategy; (4) Mobile Device's dependency on third-party operating systems and software, including Google's Android operating system; (5) the level of demand for the Company's products, particularly if consumers, businesses and governments defer purchases in response to tighter credit; (6) the Company's ability to introduce new products and technologies in a timely manner; (7) unexpected negative consequences from the Company's restructuring and cost reduction activities, including as a result of significant restructuring at the Mobile Devices business; (8) negative impact on the Company's business from global economic conditions, which may include: (i) the inability of customers to obtain financing for purchases of the Company's products; (ii) the viability of the Company's suppliers that may no longer have access to necessary financing; (iii) changes in the value of investments held by the Company's pension plan and other defined benefit plans; (iv) fair and/or actual value of the Company's debt and equity investments differing significantly from the fair values currently assigned to them; (v) counterparty failures negatively impacting the Company's financial position; (vi) difficulties or increased costs for the Company in obtaining financing; and (vii) the inability of the Company to sell accounts receivable and long-term receivables in volumes and on terms comparable to historical practices; (9) the Company's ability to purchase sufficient materials, parts and components to meet customer demand, particularly in light of global economic conditions; (10) risks related to dependence on certain key suppliers; (11) the impact on the Company's performance and financial results from strategic acquisitions or divestitures, including those that may occur in the future; (12) risks related to the Company's high volume of manufacturing in Asia and business operations in foreign countries; (13) the creditworthiness of the Company's customers and distributors, particularly purchasers of large infrastructure systems; (14) variability in income received from licensing the Company's intellectual property to others, as well as expenses incurred when the Company licenses intellectual property from others; (15) unexpected liabilities or expenses, including unfavorable outcomes to any pending or future litigation or regulatory or similar proceedings; (16) the impact of foreign currency fluctuations, including the negative impact of a strengthening U.S. dollar on the Company when competing for business in foreign markets; (17) the impact on the Company from ongoing consolidation in the telecommunications and broadband industries; (18) the impact of changes in governmental policies, laws or regulations; (19) the outcome of currently ongoing and future tax matters; and (20) negative consequences from the Company's outsourcing of various activities, including certain manufacturing, information technology and administrative functions. Motorola undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.

 

 

Definitions

 

* Non-GAAP earnings per share excludes from GAAP earnings per share the effects of stock-based compensation expense, intangible assets amortization expense and highlighted items

 

** Total cash = Cash and cash equivalents + Sigma Fund (current and non-current) and short-term investments

 

*** Net cash = Total cash - Total debt (Notes payable and current portion of long-term debt + Long-term debt)

 

**** Amounts attributable to Motorola, Inc. common shareholders

 

About Motorola
Motorola is known around the world for innovation in communications and is focused on advancing the way the world connects. From broadband communications infrastructure, enterprise mobility and public safety solutions to mobile and wireline digital communication devices that provide compelling experiences, Motorola is leading the next wave of innovations that enable people, enterprises and governments to be more connected and more mobile. Motorola (NYSE: MOT) had sales of US $22 billion in 2009. For more information, please visit www.motorola.com.

 

Media contact:

Jennifer Erickson

Motorola Mobility

+1 847-435-5320

jennifer.erickson@motorola.com

 

Nick Sweers

Motorola Solutions

+1 847-576-2462

nicholas.sweers@motorola.com

 

Investor contact:

Dean Lindroth

Motorola

+1 847-576-6899

dean.lindroth@motorola.com

 

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. DROID is a trademark of Lucasfilm Ltd. and its related companies. Used under license. The Bluetooth trademarks are owned by their proprietor and used under license.  All other product or service names are the property of their respective owners. © Motorola, Inc. 2010. All rights reserved.

 

 

Motorola, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In millions, except per share amounts)

 

		Three Months Ended
		October 2, 2010				July 3, 2010				October 3, 2009
Net sales		$	4,890			$	4,534			$	4,336
Costs of sales		3,110				2,900				2,897
Gross margin		1,780				1,634				1,439
Selling, general and administrative expenses		810				822				718
Research and development expenditures		637				634				621
Separation-related transaction costs		44				105				19
Other charges (income)		(1)				(210)				23
Intangibles amortization		65				64				69
Operating earnings (loss)		225				219				(11)
Other income (expense):
Interest expense, net		(29)				(38)				(49)
Gain on sales of investments and businesses, net		4				33				21
Other		5				(37)				(66)
Total other income (expense)		(20)				(42)				(94)
Earnings (loss) from continuing operations before income taxes		205				177				(105)
Income tax expense (benefit)		196				125				(25)
Earnings (loss) from continuing operations		9				52				(80)
Earnings from discontinued operations, net of tax		102				113				102
Net earnings		111				165				22
Less: Earnings attributable to noncontrolling interests		2				3				10
Net earnings attributable to Motorola, Inc.		$	109			$	162			$	12
Amounts attributable to Motorola, Inc. common shareholders
Earnings (loss) from continuing operations, net of tax		$	7			$	49			$	(90)
Earnings from discontinued operations, net of tax		102				113				102
Net earnings		$	109			$	162			$	12
Earnings (loss) per common share
Basic:
Continuing operations		$	0.00			$	0.02			$	(0.04)
Discontinued operations		0.05				0.05				0.05
		$	0.05			$	0.07			$	0.01
Diluted:
Continuing operations		$	0.00			$	0.02			$	(0.04)
Discontinued operations			0.05			0.05				0.05
		$	0.05			$	0.07			$	0.01
Weighted average common shares outstanding
Basic		2,339.0				2,328.8				2,299.6
Diluted		2,374.4				2,365.0				2,299.6
Dividends paid per share		$	-			$	-			$	-
		Percentage of Net Sales*
Net sales		100%				100%				100%
Costs of sales		63.6%				64.0%				66.8%
Gross margin		36.4%				36.0%				33.2%
Selling, general and administrative expenses		16.6%				18.1%				16.6%
Research and development expenditures		13.0%				14.0%				14.3%
Separation-related transaction costs		0.9%				2.3%				0.4%
Other charges (income)		0.0%				-4.6%				0.5%
Intangibles amortization		1.3%				1.4%				1.6%
Operating earnings (loss)		4.6%				4.8%				-0.3%
Other income (expense):
Interest expense, net		-0.6%				-0.8%				-1.1%
Gain on sales of investments and businesses, net		0.1%				0.7%				0.5%
Other		0.1%				-0.8%				-1.5%
Total other income (expense)		-0.4%				-0.9%				-2.2%
Earnings (loss) from continuing operations before income taxes		4.2%				3.9%				-2.4%
Income tax expense (benefit)		4.0%				2.8%				-0.6%
Earnings (loss) from continuing operations		0.2%				1.1%				-1.8%
Earnings from discontinued operations, net of tax		2.1%				2.5%				2.4%
Net earnings		2.3%				3.6%				0.5%
Less: Earnings attributable to noncontrolling interests		0.0%				0.1%				0.2%
Net earnings attributable to Motorola, Inc.		2.2%				3.6%				0.3%

 

 

* Percentages may not add up due to rounding

 

 

Motorola, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In millions, except per share amounts)

 

		Nine Months Ended
		October 2, 2010			October 3, 2009
Net sales		$	13,619		$	13,361
Costs of sales		8,754			9,348
Gross margin		4,865			4,013
Selling, general and administrative expenses		2,423			2,250
Research and development expenditures		1,889			1,950
Separation-related transaction costs		174			19
Other charges (income)		(225)			165
Intangibles amortization		193			209
Operating earnings (loss)		411			(580)
Other income (expense):
Interest expense, net		(100)			(113)
Gain on sales of investments and businesses, net		44			21
Other		(26)			49
Total other income (expense)		(82)			(43)
Earnings (loss) from continuing operations before income taxes		329			(623)
Income tax expense (benefit)		278			(229)
Earnings (loss) from continuing operations		51			(394)
Earnings from discontinued operations, net of tax		293			225
Net earnings (loss)		344			(169)
Less: Earnings attributable to noncontrolling interests		4			24
Net earnings (loss) attributable to Motorola, Inc.		$	340		$	(193)
Amounts attributable to Motorola, Inc. common shareholders
Earnings (loss) from continuing operations, net of tax		$	47		$	(418)
Earnings from discontinued operations, net of tax		293			225
Net earnings (loss)		$	340		$	(193)
Earnings (loss) per common share
Basic:
Continuing operations		$	0.02		$	(0.18)
Discontinued operations		0.13			0.10
		$	0.15		$	(0.08)
Diluted:
Continuing operations		$	0.02		$	(0.18)
Discontinued operations		0.12			0.10
		$	0.14		$	(0.08)
Weighted average common shares outstanding
Basic		2,327.6			2,290.8
Diluted		2,360.0			2,290.8
Dividends paid per share		$	-		$	0.05
		Percentage of Net Sales*
Net sales		100%			100%
Costs of sales		64.3%			70.0%
Gross margin		35.7%			30.0%
Selling, general and administrative expenses		17.8%			16.8%
Research and development expenditures		13.9%			14.6%
Separation-related transaction costs		1.3%			0.1%
Other charges (income)		-1.7%			1.2%
Intangibles amortization		1.4%			1.6%
Operating earnings (loss)		3.0%			-4.3%
Other income (expense):
Interest expense, net		-0.7%			-0.8%
Gain on sales of investments and businesses, net		0.3%			0.2%
Other		-0.2%			0.4%
Total other income (expense)		-0.6%			-0.3%
Earnings (loss) from continuing operations before income taxes		2.4%			-4.7%
Income tax expense (benefit)		2.0%			-1.7%
Earnings (loss) from continuing operations		0.4%			-2.9%
Earnings from discontinued operations, net of tax		2.2%			1.7%
Net earnings (loss)		2.5%			-1.3%
Less: Earnings attributable to noncontrolling interests		0.0%			0.2%
Net earnings (loss) attributable to Motorola, Inc.		2.5%			-1.4%

 

 

* Percentages may not add up due to rounding

 

 

Motorola, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In millions)

 

		October 2,			July 3,			October 3,
		2010			2010			2009
Assets
Cash and cash equivalents		$	3,848		$	2,893		$	3,050
Sigma Fund and short-term investments		5,046			5,338			4,065
Accounts receivable, net		3,236			2,883			2,743
Inventories, net		1,354			1,074			1,308
Deferred income taxes		1,230			1,212			1,108
Other current assets		1,442			1,291			1,338
Current assets held-for-sale		1,217			1,323			1,713
Total current assets		17,373			16,014			15,325
Property, plant and equipment, net		1,768			1,782			1,870
Sigma Fund		105			105			75
Investments		304			319			489
Deferred income taxes		1,762			1,882			2,327
Goodwill		2,752			2,720			2,714
Other assets		1,447			1,590			1,660
Non-current assets held-for-sale		414			400			589
Total assets		$	25,925		$	24,812		$	25,049
Liabilities and Stockholders’ Equity
Notes payable and current portion of long-term debt		$	532		$	531		$	24
Accounts payable		2,379			1,982			1,818
Accrued liabilities		4,517			3,993			4,230
Current liabilities held-for-sale		1,281			1,381			1,528
Total current liabilities		8,709			7,887			7,600
Long-term debt		2,864			2,907			3,901
Other liabilities		3,639			3,649			3,546
Non-current liabilities held-for-sale		167			149			85
Total Motorola, Inc. stockholders’ equity		10,441			10,116			9,810
Noncontrolling interests		105			104			107
Total liabilities and stockholders’ equity		$	25,925		$	24,812		$	25,049
Financial Ratios:
Total cash*		$	8,999		$	8,336		$	7,190
Total debt**		$	3,396		$	3,438		$	3,925
Net cash***		$	5,603		$	4,898		$	3,265

 

*Total cash = Cash and cash equivalents + Sigma Fund (current and non-current) and short-term investments

**Total debt = Notes payable and current portion of long-term debt + Long-term debt

***Net cash = Total cash - Total debt

 

 

Motorola, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In millions)

 

		Three Months Ended
		October 2, 2010			July 3, 2010			April 3, 2010
Operating
Net earnings attributable to Motorola, Inc.		$	109		$	162		$	69
Earnings (loss) attributable to the noncontrolling interests		2			3			(1)
Net earnings		111			165			68
Earnings from discontinued operations, net of tax		102			113			78
Earnings (loss) from continuing operations		9			52			(10)
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities:
Depreciation and amortization		142			137			147
Non-cash other charges (income)		(17)			2			(22)
Share-based compensation expense		69			68			63
Gain on sales of investments and businesses, net		(5)			(31)			(7)
Loss from the extinguishment of long-term debt		-			12			-
Deferred income taxes, including change in valuation allowance		62			284			(23)
Changes in assets and liabilities, net of effects of acquisitions and dispositions:		-
Accounts receivable		(334)			(323)			352
Inventories		(280)			(66)			89
Other current assets		(152)			92			1
Accounts payable and accrued liabilities		934			240			(434)
Other assets and liabilities		74			(236)			26
Net cash provided by operating activities		502			231			182
Investing
Acquisitions and investments, net		(46)			(3)			(23)
Proceeds from sales of investments and businesses, net		6			221			22
Capital expenditures		(64)			(60)			(56)
Proceeds from sales of property, plant and equipment		-			1			28
Proceeds from sales (purchases) of Sigma Fund investments, net		278			(132)			(116)
Proceeds from sales (purchases) of short-term investments, net		17			(19)			(4)
Net cash provided by (used for) investing activities		191			8			(149)
Financing
Proceeds from (repayment of) short-term borrowings, net		-			-			(4)
Repayment of debt		(3)			(479)			(2)
Issuance of common stock		83			6			63
Payment of dividends		-			-			-
Distribution from (to) discontinued operations		108			50			240
Other, net		-			-			-
Net cash provided by (used for) financing activities		188			(423)			297
Discontinued Operations
Net cash provided by (used for) operating activities from discontinued operations		84			11			304
Net cash provided by (used for) investing activities from discontinued operations		(6)			(13)			(18)
Net cash provided by (used for) financing activities from discontinued operations		(108)			(50)			(240)
Effect of exchange rate changes on cash and cash equivalents from discontinued operations		30			52			(46)
Net cash provided by (used for) discontinued operations		-			-			-
Effect of exchange rate changes on cash and cash equivalents		74			(111)			(11)
Net increase (decrease) in cash and cash equivalents		955			(295)			319
Cash and cash equivalents, beginning of period		2,893			3,188			2,869
Cash and cash equivalents, end of period		$	3,848		$	2,893		$	3,188

 

 

Motorola, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In millions)

 

		Nine Months Ended
		October 2, 2010			October 3, 2009
Operating
Net earnings (loss) attributable to Motorola, Inc.		$	340		$	(193)
Less: Earnings attributable to the noncontrolling interests		4			24
Net earnings (loss)		344			(169)
Earnings from discontinued operations, net of tax		293			225
Earnings (loss) from continuing operations		51			(394)
Adjustments to reconcile loss from continuing operations to net cash provided by (used for) operating activities:
Depreciation and amortization		426			487
Non-cash other income		(37)			(2)
Share-based compensation expense		200			199
Gain on sales of investments and businesses, net		(43)			(21)
Loss (gain) from the extinguishment of long-term debt		12			(67)
Deferred income taxes, including change in valuation allowance		323			(114)
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Accounts receivable		(305)			124
Inventories		(257)			1,055
Other current assets		(59)			556
Accounts payable and accrued liabilities		740			(2,505)
Other assets and liabilities		(136)			(95)
Net cash cash provided by (used for) operating activities		915			(777)
Investing
Acquisitions and investments, net		(72)			(30)
Proceeds from sales of investments and businesses, net		249			306
Capital expenditures		(180)			(144)
Proceeds from sales of property, plant and equipment		29			8
Proceeds from sales of Sigma Fund investments, net		30			98
Proceeds from sales (purchases) of short-term investments, net		(6)			188
Net cash provided by (used for) investing activities		50			426
Financing
Repayment of short-term borrowings, net		(4)			(71)
Repayment of debt		(484)			(130)
Issuance of common stock		152			110
Payment of dividends		-			(114)
Distribution from discontinued operations		398			543
Other, net		-			6
Net cash provided by financing activities		62			344
Discontinued Operations
Net cash provided by operating activities from discontinued operations		399			529
Net cash provided by investing activities from discontinued operations		(37)			(31)
Net cash used for financing activities from discontinued operations		(398)			(543)
Effect of exchange rate changes on cash and cash equivalents from discontinued operations		36			45
Net cash provided by (used for) discontinued operations		-			-
Effect of exchange rate changes on cash and cash equivalents		(48)			(7)
Net increase (decrease) in cash and cash equivalents		979			(14)
Cash and cash equivalents, beginning of period		2,869			3,064
Cash and cash equivalents, end of period		$	3,848		$	3,050