Exhibit 99.2
Motorola, Inc. and Subsidiaries
Immaterial Adjustments
(In millions)
Summarized below are the changes to the Company’s Net sales, Costs of sales and Gross margin due to the immaterial adjustment relating to an elimination of inter-segment sales relating to a business within our Home and Networks Mobility segment.
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| | Year Ended December 31, 2004 | | | Year Ended December 31, 2005 | | | Year Ended December 31, 2006 | |
| | As Reported | | | Adjusted | | | As Reported | | | Adjusted | | | As Reported | | | Adjusted | |
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Net sales | | $ | 29,663 | | | $ | 29,680 | | | $ | 35,262 | | | $ | 35,310 | | | $ | 42,879 | | | $ | 42,847 | |
Costs of sales | | | 19,698 | | | | 19,715 | | | | 23,833 | | | | 23,881 | | | | 30,152 | | | | 30,120 | |
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Gross margin | | $ | 9,965 | | | $ | 9,965 | | | $ | 11,429 | | | $ | 11,429 | | | $ | 12,727 | | | $ | 12,727 | |
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| | | | | | Quarter Ended April 1, 2006 | | | Quarter Ended July 1, 2006 | |
| | | | | | As Reported | | | Adjusted | | | As Reported | | | Adjusted | |
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Net sales | | | | | | $ | 9,608 | | | $ | 9,632 | | | $ | 10,876 | | | $ | 10,820 | |
Costs of sales | | | | | | | 6,677 | | | | 6,701 | | | | 7,519 | | | | 7,463 | |
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Gross margin | | | | | | $ | 2,931 | | | $ | 2,931 | | | $ | 3,357 | | | $ | 3,357 | |
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| | | | | | Quarter Ended September 30, 2006 | | | Quarter Ended December 31, 2006 | |
| | | | | | As Reported | | | Adjusted | | | As Reported | | | Adjusted | |
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Net sales | | | | | | $ | 10,603 | | | $ | 10,603 | | | $ | 11,792 | | | $ | 11,792 | |
Costs of sales | | | | | | | 7,233 | | | | 7,233 | | | | 8,723 | | | | 8,723 | |
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Gross margin | | | | | | $ | 3,370 | | | $ | 3,370 | | | $ | 3,069 | | | $ | 3,069 | |
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Summarized below are the changes to the Company’s Consolidated Statements of Cash Flow and Consolidated Balance Sheets due to the immaterial adjustment relating to a change in classification of certain deposits between Cash and cash equivalents and Short-term investments. There was no impact on net cash provided by operating activities.
Impact to Consolidated Balance Sheets:
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| | September 30, 2006 | | | December 31, 2006 | |
| | As Reported | | | Adjusted | | | As Reported | | | Adjusted | |
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Cash and cash equivalents | | $ | 3,015 | | | $ | 2,750 | | | $ | 3,212 | | | $ | 2,816 | |
Short-term investments | | | 211 | | | | 476 | | | | 224 | | | | 620 | |
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| | $ | 3,226 | | | $ | 3,226 | | | $ | 3,436 | | | $ | 3,436 | |
Impact to Consolidated Statements of Cash Flows:
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| | Nine Months Ended September 30, 2006 | | | Year Ended December 31, 2006 | | | Three Months Ended March 31, 2007 | |
| | As Reported | | | Adjusted | | | As Reported | | | Adjusted | | | As Reported | | | Adjusted | |
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Purchases of short-term investments | | $ | (67 | ) | | $ | (332 | ) | | $ | (80 | ) | | $ | (476 | ) | | $ | (577 | ) | | $ | (181 | ) |
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Net cash provided by (used for) investing activities from continuing operations | | | (998 | ) | | | (1,263 | ) | | | (1,048 | ) | | | (1,444 | ) | | | 2,091 | | | | 2,487 | |
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Cash and cash equivalents, beginning of year | | $ | 3,774 | | | $ | 3,774 | | | $ | 3,774 | | | $ | 3,774 | | | $ | 3,212 | | | $ | 2,816 | |
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Net decrease in cash and cash equivalents | | | (759 | ) | | | (1,024 | ) | | | (562 | ) | | | (958 | ) | | | (475 | ) | | | (79 | ) |
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Cash and cash equivalents, end of period | | $ | 3,015 | | | $ | 2,750 | | | $ | 3,212 | | | $ | 2,816 | | | $ | 2,737 | | | $ | 2,737 | |
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