Motorola 2008 Annual Report Download - page 137

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Intangible Assets
Amortized intangible assets were comprised of the following:
December 31
Gross
Carrying
Amount Accumulated
Amortization
Gross
Carrying
Amount Accumulated
Amortization
2008 2007
Intangible assets:
Completed technology $1,127 $ 633 $1,234 $484
Patents 292 125 292 69
Customer-related 277 104 264 58
Licensed technology 129 118 123 109
Other intangibles 150 126 166 99
$1,975 $1,106 $2,079 $819
Amortization expense on intangible assets, which is included within Other and Eliminations, was
$318 million, $369 million $100 million for the years ended December 31, 2008, 2007 and 2006, respectively. As
of December 31, 2008 future amortization expense is estimated to be $278 million for 2009, $256 million in
2010, $242 million in 2011, $50 million in 2012 and $29 million in 2013.
Amortized intangible assets, excluding goodwill, by business segment:
December 31
Gross
Carrying
Amount Accumulated
Amortization
Gross
Carrying
Amount Accumulated
Amortization
2008 2007
Mobile Devices $45 $45 $36 $36
Home and Networks Mobility 722 522 712 455
Enterprise Mobility Solutions 1,208 539 1,331 328
$1,975 $1,106 $2,079 $819
During the year ended December 31, 2008, the Company recorded an impairment of intangible assets of
$121 million due to a change in a technology platform strategy, relating to completed technology and other
intangibles, in the Enterprise Mobility Solutions segment. During the year ended December 31, 2007 due to a
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.
Goodwill
The following tables display a rollforward of the carrying amount of goodwill from January 1, 2007 to
December 31, 2008, by business segment:
Segment January 1,
2008 Acquired Adjustments
(1)
Impaired December 31,
2008
Mobile Devices $ 19 $15 $ 21 $ (55) $ —
Home and Networks Mobility 1,576 12 (179) — 1,409
Enterprise Mobility Solutions 2,904 60 28 (1,564) 1,428
$4,499 $87 $(130) $(1,619) $2,837
(1) Includes translation adjustments.
During the year ended December 31, 2008, the Company finalized its assessment of the Internal Revenue
Code Section 382 Limitations (“IRC Section 382”) relating to the pre-acquisition tax loss carry-forwards of its
2007 acquisitions. As a result of the IRC Section 382 studies, the company recorded additional deferred tax assets
and a corresponding reduction in goodwill, which is reflected in the adjustment column above.
In the fourth quarter of 2008, we conducted our annual assessment of goodwill for impairment. The
Company performed extensive valuation analyses, utilizing both income and market approaches, in our goodwill
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