Motorola 2006 Annual Report Download - page 94

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86
During the first half of 2005, the Company sold 22.5 million shares of common stock of Nextel
Communications, Inc. (""Nextel''). The Company received approximately $679 million in cash and realized a pre-
tax gain of $609 million from these sales.
On August 12, 2005, Sprint Corporation completed its merger (the ""Sprint Nextel Merger'') with Nextel. In
connection with the Sprint Nextel Merger, Motorola received $46 million in cash, 31.7 million voting shares and
37.6 million non-voting shares of Sprint Nextel, in exchange for its remaining 54.7 million shares of Nextel. As a
result of this transaction, the Company realized a gain of $1.3 billion, comprised of a $1.7 billion gain recognized
on the receipt of cash and the 69.3 million shares of Sprint Nextel in exchange for its shares of Nextel, net of a
$418 million loss recognized on its hedge of 25 million shares of common stock of Nextel.
On December 14, 2004, in connection with the announcement of the definitive agreement relating to the Sprint
Nextel Merger, Motorola, a Motorola subsidiary and Nextel entered into an agreement pursuant to which
Motorola and its subsidiary agreed to not dispose of their 29.7 million non-voting shares of Nextel (now
37.6 million shares of non-voting common stock of Sprint Nextel issued in exchange for Nextel non-voting
common stock pursuant to the Sprint Nextel Merger) for a period of no longer than two years. In exchange for
this agreement, Nextel paid Motorola a fee of $50 million in 2005.
During the fourth quarter of 2005, the Company elected to settle variable share purchase agreements by
delivering 30.3 million shares of Sprint Nextel common stock, with a value of $725 million, to the counterparties
and selling the remaining 1.4 million Sprint Nextel common shares in the open market. The Company received
aggregate cash proceeds of $391 million and realized a loss of $70 million in connection with the settlement and
sale.
For the year ended December 31, 2004, the $460 million gain on sales of investments and businesses is
primarily comprised of: (i) a $130 million gain on the sale of the Company's remaining shares in Broadcom
Corporation, (ii) a $122 million gain on the sale of a portion of the Company's shares in Nextel, (iii) an
$82 million gain on the sale of a portion of the Company's shares in Telus Corporation, and (iv) a $68 million
gain on the sale of a portion of the Company's shares in Nextel Partners, Inc.
Other Assets
Other assets consists of the following:
December 31
2006
2005
Long-term finance receivables, net of allowance of $10 and $12 $ 145 $82
Goodwill 1,706 1,349
Intangible assets, net of accumulated amortization of $536 and $437 354 231
Royalty license arrangements 439 471
Other 487 464
$3,131 $2,597
Accrued Liabilities
Accrued liabilities consists of the following:
December 31
2006
2005
Contractor payables $1,481 $ 985
Customer reserves 1,305 1,171
Compensation 777 1,057
Deferred revenue 730 425
Customer downpayments 532 429
Warranty reserves 530 467
Tax liabilities 444 488
Other 2,877 2,507
$8,676 $7,529