Motorola 2009 Annual Report Download - page 95

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87
2. Discontinued Operations
During the year ended December 31, 2009, the Company completed the sales of: (i) Good Technology, and
(ii) the Company’s former biometrics business, which included its Printrak trademark. Collectively, the Company
received $163 million in net cash and recorded a net gain on sale of the businesses of $175 million before income
taxes. These amounts are included in Earnings from discontinued operations, net of tax, in the Company’s
consolidated statements of operations. The operating results of these businesses (each of which was formerly
included as part of the Enterprise Mobility Solutions segment) through the date of their respective dispositions are
reported as discontinued operations in the consolidated financial statements for the period ending December 31,
2009. For all other applicable prior periods, the operating results of these businesses have not been reclassified as
discontinued operations since the results are not material to the Company’s consolidated financial statements.
During the year ended December 31, 2006, the Company completed the sale of its automotive electronics
business to Continental AG. During the year ended December 31, 2004, the Company completed the separation
and spin-off of Freescale Semiconductor, Inc. (‘‘Freescale Semiconductor’’). The financial results of the automotive
electronics business and Freescale Semiconductor were reflected as discontinued operations in the consolidated
financial statements and related notes thereto. During the year ended December 31, 2008, the discontinued
operations activity reflected in the consolidated statements of cash flows primarily relates to the resolution and
payment of certain indemnifications relating to a divestiture. During the year ended December 31, 2007, the
discontinued operations activity primarily relates to resolutions of certain matters with the tax authorities and
payments of post-retiree medical claims to former employees.
The following table displays summarized activity in the Company’s consolidated statements of operations for
discontinued operations during the years ended December 31, 2009, 2008 and 2007.
Years Ended December 31 2009 2008 2007
Net sales $19 $— $ —
Operating earnings (11) —10
Gains on sales of investments and businesses, net 175 ——
Earnings before income taxes 162 —10
Income tax expense (benefit) 102 — (46)
Earnings from discontinued operations, net of tax 60 —56
3. Other Financial Data
Statement of Operations Information
Other Charges
Other charges included in Operating earnings (loss) consist of the following:
Years Ended December 31 2009 2008 2007
Other charges (income):
Intangibles amortization $278 $ 318 $369
Reorganization of businesses 258 248 290
Separation-related transaction costs 42 59 —
Facility impairment 39 ——
Environmental reserve charge 24 ——
Goodwill impairment —1,619 —
Intangible asset impairments —136 89
Legal settlements and related insurance matters, net —14 140
In-process research and development charges —196
Gain on sale of property, plant and equipment —(48) —
$641 $2,347 $984