Motorola 2009 Annual Report Download - page 133

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125
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 was 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.
Intangible Assets
Amortized intangible assets were comprised of the following:
2009 2008
Gross Gross
Carrying Accumulated Carrying Accumulated
December 31 Amount Amortization Amount Amortization
Intangible assets:
Completed technology $1,123 $ 792 $1,127 $ 633
Patents 288 179 292 125
Customer-related 278 145 277 104
Licensed technology 130 122 129 118
Other intangibles 149 137 150 126
$1,968 $1,375 $1,975 $1,106
Amortization expense on intangible assets, which is included within Other charges in the consolidated
statement of operations, was $278 million, $318 million and $369 million for the years ended December 31,
2009, 2008 and 2007, respectively. As of December 31, 2008 future amortization expense is estimated to be
$257 million in 2010, $243 million in 2011, $50 million in 2012 and $29 million in 2013 and $9 million in
2014.