Motorola 2007 Annual Report Download - page 128

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During the year ended December 31, 2007 due to a recent change in software platform strategy, the Company
recorded an impairment of intangible assets of $81 million, primarily relating to completed technology and other
intangibles, in the Mobile Devices segment.
The following tables display a rollforward of the carrying amount of goodwill from January 1, 2006 to
December 31, 2007, by business segment:
Segment January 1,
2007 Acquired Adjustments Dispositions December 31,
2007
Mobile Devices $ 69 $ — $(50) $ — $ 19
Home and Networks Mobility 1,266 427 2 (119) 1,576
Enterprise Mobility Solutions 371 2,569 (36) — 2,904
$1,706 $2,996 $(84) $(119) $4,499
Segment January 1,
2006 Acquired Adjustments Dispositions December 31,
2006
Mobile Devices $ 17 $ 52 $— $— $ 69
Home and Networks Mobility 1,009 235 22 — 1,266
Enterprise Mobility Solutions 323 49 (1) — 371
$1,349 $336 $21 $— $1,706
15. Valuation and Qualifying Accounts
The following table presents the valuation and qualifying account activity for the years ended December 31,
2007, 2006 and 2005:
Balance at
January 1 Charged to
Earnings Used Adjustments
(1)
Balance at
December 31
2007
Reorganization of Businesses $ 158 $ 420 $ (281) $ (62) $ 235
Allowance for Doubtful Accounts 78 130 (3) (21) 184
Allowance for Losses on Finance
Receivables 10 2 — (7) 5
Inventory Reserves 416 546 (524) (67) 371
Warranty Reserves 530 756 (735) (135) 416
Customer Reserves 1,305 2,809 (2,205) (937) 972
2006
Reorganization of Businesses 103 221 (143) (23) 158
Allowance for Doubtful Accounts 101 50 (58) (15) 78
Allowance for Losses on Finance
Receivables 12 5 (8) 1 10
Inventory Reserves 529 517 (490) (140) 416
Warranty Reserves 467 977 (891) (23) 530
Customer Reserves 1,171 4,218 (3,597) (487) 1,305
2005
Reorganization of Businesses 114 91 (81) (21) 103
Allowance for Doubtful Accounts 173 17 (14) (75) 101
Allowance for Losses on Finance
Receivables 1,966 — (1,926) (28) 12
Inventory Reserves 522 569 (389) (173) 529
Warranty Reserves 472 816 (696) (125) 467
Customer Reserves 842 3,215 (2,588) (298) 1,171
(1) Includes translation adjustments.
120