Motorola 2012 Annual Report Download - page 68

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60
On May 27, 2010, the Company completed the sale of its Israel-based wireless network operator business formerly
included as part of the Government segment. The Company received $170 million in net cash and recorded a gain on sale of the
business of $20 million before income taxes, which is included in Earnings from discontinued operations, net of tax, in the
Company’s consolidated statements of operations.
The following table displays summarized activity in the Company’s consolidated statements of operations for
discontinued operations during the years ended December 31, 2012, 2011 and 2010.
Years ended December 31 2012 2011 2010
Net sales $—
$ 1,346 $ 15,256
Operating earnings 11 201 601
Gains (loss) on sales of investments and businesses, net (7)474 20
Earnings before income taxes 8667 600
Income tax expense 5256 211
Earnings from discontinued operations, net of tax 3411 389
3. Other Financial Data
Statement of Operations Information
Other Charges
Other charges included in Operating earnings consist of the following:
Years ended December 31 2012 2011 2010
Other charges (income):
Intangibles amortization $29
$ 200 $ 203
Reorganization of businesses 41 52 54
Intellectual property settlements and reserve adjustment ——(78)
Legal and related insurance matters, net (16)88 (29)
Pension plan adjustments, net —(9)—
Long-term financing receivable reserve —10 —
$54
$ 341 $ 150
During 2012, the Company recorded a $16 million gain in connection with the settlement of a legal matter involving the
legacy paging business.
During 2011, the Company recorded $88 million of net charges for legal matters. These charges primarily relate to the
Silverman litigation and legal matters related to the legacy paging business.
During 2010, the Company entered into a settlement agreement with another company to resolve certain intellectual
property disputes between the two companies. As a result of the settlement agreement, the Company received $65 million in
cash and was assigned certain patent properties. As a result of this agreement, the Company recorded a pre-tax gain of $39
million (and $55 million was recorded in discontinued operations) during the year ended December 31, 2010, related to the
settlement of the outstanding litigation between the parties.