Motorola brings $3 billion in cash home from overseas

Motorola, Schaumburg, Ill., announced yesterday that it had moved $3 billion of cash from overseas to the United States.

The movement of the cash brought to about $4.2 billion the amount of cash Motorola held in the United States at the end of the third quarter of 2002. This compared to $1.3 billion the company held in the United States at the end of the second quarter.

Motorola said that the tax cost to the company associated with this movement of cash would be $50 million and would have no impact on the company’s earnings for the third-quarter.

At the end of the second quarter of 2002, Motorola reported holding worldwide $6.5 billion in cash, cash equivalents and short-term investments. The company expects to report a similar amount for the third quarter of 2002.

Motorola said that it intends to reduce its total debt through 2003. The cash movement is seen to be related to that effort.

Motorola plans to report third-quarter earnings on Oct. 15.