Motorola 2007 Annual Report Download - page 120

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both of which are presented in Other and Eliminations. In 2005, the Company also recorded income of $515
million for a payment relating to the Telsim collection settlement which was presented in Other and Eliminations.
Years Ended December 31 2007 2006 2005 2007 2006 2005 2007 2006 2005
Assets Capital Expenditures Depreciation
Expense
Mobile Devices $ 6,318 $ 9,316 $ 7,551 $132 $164 $126 $146 $133 $127
Home and Networks Mobility 7,451 6,746 5,688 160 149 135 141 165 180
Enterprise Mobility Solutions 8,694 3,268 2,647 113 190 164 167 92 98
22,463 19,330 15,886 405 503 425 454 390 405
Other and Eliminations 12,349 19,263 19,281 122 146 123 83 73 68
34,812 38,593 35,167 $527 $649 $548 $537 $463 $473
Discontinued Operations —— 635
$34,812 $38,593 $35,802
Assets in Other include primarily cash and cash equivalents, Sigma Fund, deferred income taxes, short-term
investments, property, plant and equipment, investments, and the administrative headquarters of the Company.
Geographic area information
Years Ended December 31 2007 2006 2005 2007 2006 2005 2007 2006 2005
Net Sales* Assets** Property, Plant, and
Equipment
United States $18,548 $18,776 $16,749 $22,385 $24,212 $23,635 $1,252 $1,089 $1,010
China 2,632 4,664 2,908 3,926 4,649 3,843 311 278 189
United Kingdom 1,070 1,306 1,532 1,305 1,773 1,962 121 134 127
Germany 516 874 882 644 1,195 990 75 131 118
Israel 741 659 534 1,374 1,195 1,372 165 156 134
Singapore 128 176 156 3,120 3,713 2,993 40 39 35
Other nations, net of
eliminations 12,987 16,392 12,549 2,058 1,856 372 516 440 407
$36,622 $42,847 $35,310 $34,812 $38,593 $35,167 $2,480 $2,267 $2,020
* Net sales by geographic region are measured by the locale of end customer.
** Excludes assets held for sale relating to discontinued operations of $635 million at December 31, 2005.
12. Shareholder Rights Plan
Effective August 1, 2006 (the “Termination Date”), the Company terminated its shareholder rights plan. The
shareholder rights plan was scheduled to expire in November 2008. On the Termination Date, in connection with
the termination of the shareholder rights plan, the Company made the filings necessary to eliminate all references
to the Company’s Junior Participating Preferred Stock, Series B (“Series B”) from its Restated Certificate of
Incorporation. Accordingly, no authorized Series B shares are reflected in the Company’s consolidated balance
sheets as of December 31, 2007 and 2006. No Series B shares were or have been issued.
13. Reorganization of Businesses
The Company maintains a formal Involuntary Severance Plan (the “Severance Plan”) which permits the
Company to offer eligible employees severance benefits based on years of service and employment grade level in
the event that employment is involuntarily terminated as a result of a reduction-in-force or restructuring. Each
separate reduction-in-force has qualified for severance benefits under the Severance Plan. The Company recognizes
termination benefits based on formulas per the Severance Plan at the point in time that future settlement is
probable and can be reasonably estimated based on estimates prepared at the time a restructuring plan is approved
by management. Exit costs primarily consist of future minimum lease payments on vacated facilities. At each
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