Motorola 2012 Annual Report Download - page 96

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88
payments under these agreements. However, there is an increasing risk in relation to patent indemnities given the current legal
climate.
In addition, pursuant to the Master Separation and Distribution Agreement and certain other agreements with Motorola
Mobility, Motorola Mobility agreed to indemnify the Company for certain liabilities, and the Company agreed to indemnify
Motorola Mobility for certain liabilities, in each case for uncapped amounts.
Intellectual Property Matters: 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 assets. As a result of this agreement, the Company recorded a pre-
tax gain of $39 million (and $55 million was allocated to discontinued operations) during the year ended December 31, 2010,
related to the settlement of the outstanding litigation between the parties.
12. Information by Segment and Geographic Region
We report financial results for two segments, based on products and services provided:
Government: The Government segment includes sales of public safety communication systems, commercial two-way
radio systems and devices, and software. Service revenues included in the Government segment are primarily those
associated with the design, installation, maintenance and optimization of equipment for public safety networks.
Enterprise: The Enterprise segment includes sales of rugged and enterprise grade mobile computers and tablets, laser/
imaging/RFID based data capture products, wireless local area network ("WLAN") and integrated digital enhanced
networks ("iDEN") and software. Service revenues included in the Enterprise segment are primarily maintenance
contracts associated with the above products.
For the years ended December 31, 2012, 2011 and 2010, no single customer accounted for more than 10% of net sales.
Segment information
Net Sales Operating Earnings (Loss)
Years ended December 31 2012 2011 2010 2012 2011 2010
Government $ 5,989 $ 5,358 $ 5,049 $ 965 $ 616 $ 534
Enterprise 2,709 2,845 2,568 291 242 217
8,698 8,203 7,617
Operating earnings 1,256 858 751
Total other expense (41) (120) (87)
Earnings from continuing
operations before income taxes $ 1,215 $ 738 $ 664
Assets
Capital
Expenditures
Depreciation
Expense
Years ended December 31 2012 2011 2010 2012 2011 2010 2012 2011 2010
Government $ 3,095 $ 2,892 $ 3,424 $ 132 $ 159 $ 172 $ 143 $ 128 $ 110
Enterprise 2,552 2,264 2,724 55 27 20 36 37 40
5,647 5,156 6,148 187 186 192 179 165 150
Other 7,032 8,773 11,649
12,679 13,929 17,797
Discontinued operations —— 7,780
$ 12,679 $ 13,929 $ 25,577
Assets in Other include primarily cash and cash equivalents, Sigma Fund, deferred income taxes, short-term investments, property, plant and equipment,
investments, and the administrative headquarters of the Company.