Motorola 2004 Annual Report Download - page 122

114 MOTOROLA INC. AND SUBSIDIARIESNOTES TO
CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except as noted)
switching, application platforms and third-party switching for CDMA 2000, GSM, iDEN» and UMTS
technologies.
‚ The Commercial, Government and Industrial Solutions segment (""CGISS'') designs, manufactures, sells,
installs, and services analog and digital two-way radio, voice and data communications products and
systems to a wide range of public-safety, government, utility, courier, transportation and other worldwide
markets. The segment continues to invest in the market for broadband data, including infrastructure,
devices, service and applications. In addition, the segment participates in the expanding market for
integrated information management, mobile and biometric applications and services.
‚ The Integrated Electronic Systems segment (""IESS'') designs, manufactures and sells: (i) automotive and
industrial electronics systems, (ii) telematics systems that enable automated roadside assistance, navigation
and advanced safety features for automobiles, (iii) portable energy storage products and systems, and
(iv) embedded computing systems.
‚ The Broadband Communications segment (""BCS'') designs, manufactures and sells a wide variety of
broadband products, including: (i) digital systems and set-top terminals for cable television and broadcast
networks, (ii) high speed data products, including cable modems and cable modem termination systems, as
well as Internet Protocol-based telephony products, (iii) access network technology, including hybrid Ñber
coaxial network transmission systems and Ñber-to-the-premise transmission systems, used by cable television
operators, (iv) digital satellite television systems; (v) direct-to-home satellite networks and private
networks for business communications, and (vi) high-speed data, video and voice broadband systems over
existing phone lines.
‚ Other is comprised of the Other Products segment and general corporate items. The Other Products
segment includes: (i) various corporate programs representing developmental businesses and research and
development projects, which are not included in any major segment, and (ii) Motorola Credit Corporation,
the Company's wholly-owned Ñnance subsidiary.
Segment operating results are measured based on operating earnings (loss) adjusted, if necessary, for certain
segment-speciÑc items and corporate allocations. Intersegment and intergeographic sales are accounted for on an
arm's-length pricing basis. Intersegment sales included in adjustments and eliminations were $963 million,
$816 million and $874 million for the years ended December 31, 2004, 2003 and 2002, respectively. These sales
were primarily from the Integrated Electronic Systems segment to the Personal Communications segment.
Intersegment sales from the Integrated Electronic Systems segment were $507 million, $409 million and
$424 million, for the years ended December 31, 2004, 2003 and 2002, respectively. Net sales by geographic region
are measured by the location of the revenue-producing operations.
Domestic export sales to third parties were $2.7 billion, $1.9 billion and $1.3 billion for the years ended
December 31, 2004, 2003 and 2002, respectively. Domestic export sales to aÇliates and subsidiaries, which are
eliminated in consolidation, were $1.8 billion, $1.8 billion and $1.3 billion for the years ended December 31, 2004,
2003 and 2002, respectively.
IdentiÑable assets (excluding intersegment receivables) are the Company's assets that are identiÑed with classes
of similar products or operations in each geographic region.
For the years ended December 31, 2004, 2003 and 2002, approximately 10%, 12% and 11%, respectively, of
net sales were to Nextel Communications, Inc. and its aÇliates.