Motorola 2006 Annual Report Download - page 126

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118
Amortized intangible assets, excluding goodwill by business segment:
2006
2005
Gross Gross
Carrying Accumulated Carrying Accumulated
December 31 Amount Amortization Amount Amortization
Mobile Devices $154 $ 41 $36 $14
Networks and Enterprise 273 151 250 119
Connected Home Solutions 463 344 382 304
$890 $536 $668 $437
The following tables display a rollforward of the carrying amount of goodwill from January 1, 2005 to
December 31, 2006, by business segment:
January 1, December 31,
Segment 2006 Acquired Adjustments 2006
Mobile Devices $ 17 $ 52 $Ì $ 69
Networks and Enterprise 539 73 (1) 611
Connected Home Solutions 793 211 22 1,026
$1,349 $336 $21 $1,706
January 1, December 31,
Segment 2005 Acquired Adjustments 2005
Mobile Devices $ 17 $Ì $ Ì $ 17
Networks and Enterprise 484 73 (18) 539
Connected Home Solutions 782 16 (5) 793
$1,283 $89 $(23) $1,349
The goodwill impairment test is performed at the reporting unit level and is a two-step analysis. First, the fair
value (""FV'') of each reporting unit is compared to its book value. If the FV of the reporting unit is less than its
book value, the Company performs a hypothetical purchase price allocation based on the reporting unit's FV to
determine the FV of the reporting unit's goodwill. FV is determined with the help of independent appraisal firms
using a combination of present value techniques and quoted market prices of comparable businesses. No
impairment charges were required for the year ended December 31, 2006 or December 31, 2005. For the year
ended December 31, 2004, the Company determined that goodwill related to a sensor group, which was
subsequently divested in 2005, was impaired by a total of $125 million.