Motorola 2008 Annual Report Download - page 135

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The fair value of acquired in-process research and development was $95 million. The acquired in-process
research and development will have no alternative future uses if the products are not feasible and, as such, costs
were expensed at the date of acquisition. At the date of acquisition, 31 projects were in process and were
completed through 2008. The average risk adjusted rate used to value these projects is 15-16%. The allocation of
value to in-process research and development was determined using expected future cash flows discounted at
average risk adjusted rates reflecting both technological and market risk as well as the time value of money.
The fair value of the acquired intangible assets was $1.0 billion at the time of acquisition. Intangible assets are
included in Other assets in the Company’s consolidated balance sheets. The intangible assets are being amortized
over periods ranging from 1 to 8 years on a straight-line basis. The Company recorded $2.3 billion of goodwill,
none of which is expected to be deductible for tax purposes.
The results of the operations of Symbol have been included in the Enterprise Mobility Solutions segment in
the Company’s consolidated financial statements subsequent to the date of acquisition. The pro forma effects of
this acquisition on the Company’s consolidated financial statements were not significant.
Good Technology, Inc.
In January 2007, the Company acquired Good Technology, Inc. (“Good”), a provider of enterprise mobile
computing software and services, for $438 million in net cash. The Company recorded $296 million in goodwill,
none of which is expected to be deductible for tax purposes and $158 million in identifiable intangible assets.
However, due to recent changes in software platform strategy, impairment charges of $123 million were recorded
for the year ended December 31, 2008, representing write-downs of: (i) $121 million of intangible assets, primarily
relating to completed technology and other intangibles, and (ii) $2 million of property, plant and equipment.
The results of operations of Good have been included in the Enterprise Mobility Solutions segment in the
Company’s consolidated financial statements subsequent to the date of acquisition. The pro forma effects of this
acquisition on the Company’s consolidated financial statements were not significant.
Netopia, Inc.
In February 2007, the Company acquired Netopia, Inc. (“Netopia”), a broadband equipment provider for
DSL customers, which allows for phone, TV and fast Internet connections, for $183 million in net cash. The
Company recorded $61 million in goodwill, none of which is expected to be deductible for tax purposes, and
$100 million in identifiable intangible assets. Intangible assets are included in Other assets in the Company’s
consolidated balance sheets. The intangible assets are being amortized over a period of 7 years on a straight-line
basis.
The results of operations of Netopia have been included in the Home and Networks Mobility segment in the
Company’s consolidated financial statements subsequent to the date of acquisition. The pro forma effects of this
acquisition on the Company’s consolidated financial statements were not significant.
Terayon Communication Systems, Inc.
In July 2007, the Company acquired Terayon Communication Systems, Inc. (“Terayon”), a provider of real-
time digital video networking applications to cable, satellite and telecommunication service providers worldwide,
for $137 million in net cash. The Company recorded $21 million in goodwill, none of which is expected to be
deductible for tax purposes, and $52 million in identifiable intangible assets. Intangible assets are included in
Other assets in the Company’s consolidated balance sheets. The intangible assets are being amortized over periods
ranging from 4 to 6 years on a straight-line basis.
The results of operations of Terayon have been included in the Home and Networks Mobility segment in the
Company’s consolidated financial statements subsequent to the date of acquisition. The pro forma effects of this
acquisition on the Company’s consolidated financial statements were not significant.
Broadbus Technologies, Inc.
In September 2006, the Company acquired Broadbus Technologies, Inc. (“Broadbus”), a provider of television
on demand technology, for $181 million in cash. The Company recorded $131 million in goodwill, none of which
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