Motorola 2006 Annual Report Download - page 118

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Segment information
Operating Earnings
Net Sales (Loss)
Years Ended December 31 2006 2005 2004 2006 2005 2004
Mobile Devices $28,383 $21,459 $17,108 $2,690 $2,192 $1,728
Networks and Enterprise 11,245 11,202 10,465 1,521 1,939 1,550
Connected Home Solutions 3,327 2,871 2,335 224 153 154
42,955 35,532 29,908 4,435 4,284 3,432
Other and Eliminations (76) (270) (245) (343) 321 (440)
$42,879 $35,262 $29,663
Operating earnings 4,092 4,605 2,992
Total other income 518 1,807 120
Earnings from continuing operations before income
taxes $4,610 $6,412 $3,112
Effective the fourth quarter 2006, the Company reflects costs associated with the amortization of intangible
assets and in-process research and development (""IPR&D'') at the corporate level rather than at the business
segment level. Accordingly, these costs have been reclassified for all periods presented from the corresponding
business segment to Others and Eliminations to conform to the current period presentation.
Other as presented in Other and Eliminations above consists primarily of (i) general corporate related
expenses, including stock option and employee stock purchase plan expenses, (ii) various corporate programs
representing developmental businesses and research and development projects, which are not included in any major
segment, and (iii) the Company's wholly-owned finance subsidiary. Beginning in 2006, certain general corporate
expenses, which had previously been allocated to the business segments, are included in the operating expenses of
Other. These expenses, which were approximately $98 million for the year ended December 31, 2006, are no longer
allocated to the operating segments, primarily include: (i) corporate general and administrative expenses, including
strategy, legal, human resources, finance and CEO and CFO functional staff expenses, (ii) corporate marketing
expenses, and (iii) research and development projects.
In 2006, the Company also recorded income of $418 million for a payment relating to the Telsim settlement,
partially offset by expenses of $88 million representing a charitable contribution to the Motorola Foundation of
appreciated equity holdings in a third party both of which are presented in Other and Eliminations.
Depreciation
Assets Capital Expenditures Expense
Years Ended December 31 2006 2005 2004 2006 2005 2004 2006 2005 2004
Mobile Devices $ 9,316 $ 7,551 $ 5,443 $164 $126 $ 92 $133 $127 $136
Networks and Enterprise 6,812 5,893 5,276 320 271 249 215 227 232
Connected Home Solutions 3,202 2,442 2,346 19 28 27 42 51 59
19,330 15,886 13,065 503 425 368 390 405 427
Other and Eliminations 19,263 19,281 17,083 146 123 37 73 68 75
38,593 35,167 30,148 $649 $548 $405 $463 $473 $502
Discontinued Operations Ì 635 774
$38,593 $35,802 $30,922
Assets in Other include primarily cash and cash equivalents, Sigma Funds, deferred income taxes, marketable
securities, property, plant and equipment, investments, and the administrative headquarters of the Company.