Motorola 2006 Annual Report Download - page 76

68 MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SFAS 156 will have a material effect on the Company's consolidated results of operations, financial position or cash
flows.
Realignment of Segments
Effective as of the second quarter of 2006, the Company realigned its businesses into three operating business
segments: (i) Mobile Devices, (ii) Networks and Enterprise, and (iii) Connected Home Solutions. In addition,
during the second quarter of 2006, the Company executed an agreement to sell its automotive electronics business.
Reclassifications have been made to prior years' financial statements and related notes to conform to the 2006
presentation and present the automotive electronics business as a discontinued operation.
Reclassifications
Effective as of the fourth quarter 2006, the Company reflects costs associated with the amortization of
intangible assets and in-process research and development at the corporate level rather than at the business segment
level. Accordingly, these costs have been reclassified in prior period financial statements from the corresponding
business segment to Other and Eliminations to conform to the current period presentation. In addition, certain
costs associated with amortization of intangible assets, information technology development and new product
introduction costs have been reclassified between statement lines in the consolidated statements of operations in the
prior period financial statements to conform to the current period presentation.
Forward-Looking Statements
Except for historical matters, the matters discussed in this Form 10-K are forward-looking statements that
involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements under the
following headings: (1) ""Item 1: Business'' about the impact of the Symbol Technologies, Inc. (""Symbol'')
acquisition; (2) ""Mobile Device Segment,'' about industry growth, including in emerging markets and for
replacement sales, the impact of the segment's strategy, the impact from the loss of key customers, the allocation
and regulation of frequencies, the impact of regulatory matters, the availability of materials, energy supplies and
labor, the seasonality of the business, the firmness of the segment's backlog and the manufacturing location;
(3) ""Networks and Enterprise Segment,'' about the impact of the Symbol acquisition, the potential of the
portfolio, 3G licenses and market development, homeland security industry growth, sales and utilization, enterprise
mobility market growth, the impact of the segment's strategy, the impact from the loss of key customers,
competition from system integrators and telecommunications carriers, consolidation among providers, iDEN trends,
the impact of regulatory matters, allocation and regulation of frequencies, the availability of materials, energy
supplies and labor, the seasonality of the business and the firmness of the segment's backlog; (4) ""Connected
Home Solutions Segment,'' about the impact of the segment's strategy, the impact of acquisitions, the impact from
the loss of key customers, the competitive position, the impact of demand and competitive changes, the impact of
regulatory matters, the availability of materials, energy supplies and labor, the seasonality of the business and the
firmness of the segment's backlog; (5) ""Other Information,'' about the impact from the loss of key customers, the
firmness of the aggregate backlog position, the competitiveness through research and development and utilization of
technology; (6) ""Properties,'' about the impact of property sales and the consequences of a disruption in
manufacturing; (7) ""Legal Proceedings,'' about the ultimate disposition of pending legal matters;
(8) ""Management's Discussion and Analysis,'' about: (a) the impact of acquisitions, (b) the success of our
business strategy, (c) future payments, charges, use of accruals and expected cost-saving benefits associated with
our reorganization of business programs, (d) the Company's ability and cost to repatriate funds, (e) the impact of
the timing and level of sales and the geographic location of such sales, (f) future cash contributions to pension
plans or retiree health benefit plans, (g) outstanding commercial paper balances, (h) the Company's ability and
cost to access the capital markets, (i) the Company's ability to retire outstanding debt, (j) adequacy of resources
to fund expected working capital and capital expenditure measurements, (k) expected payments pursuant to
commitments under long-term agreements, (l) the outcome of ongoing and future legal proceedings (m) the
impact of recent accounting pronouncements on the Company, and (n) the impact of the loss of key customers;
and (9) ""Quantitative and Qualitative Disclosures about Market Risk,'' about: (a) the impact of foreign currency
exchange risks, (b) future hedging activity and expectations of the Company, and (c) the ability of counterparties
to financial instruments to perform their obligations.
Some of the risk factors that affect the Company's business and financial results are discussed in ""Item 1A:
Risk Factors.'' We wish to caution the reader that the risk factors discussed in ""Item 1A: Risk Factors'', and those
described elsewhere in this report or our other Securities and Exchange Commission filings, could cause our actual
results to differ materially from those stated in the forward-looking statements.